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GATT Library | qj790dm9026 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Annotatedd Agenda. Prepared by the Secretariat for discussion of Articles 31, 32 and 33 | United Nations Economic and Social Council, June 16, 1947 | United Nations. Economic and Social Council | 16/06/1947 | official documents | E/PC/T/W/198 and E/PC/T/W/177-207 | https://exhibits.stanford.edu/gatt/catalog/qj790dm9026 | qj790dm9026_90050342.xml | GATT_152 | 3,564 | 23,441 | ECONOMIC CONSEIL RESTRICTED
AND ECONOMIQUE E/PC/T/W/198
16 June 1947.
SOCIAL COUNCIL ET SOCIAL ORIGINAL: ENGLISH.
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNIED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT.
Annotatedd Agenda
Prepared by the Secretariat for discussion
of Articles 31, 32 and 33.
This agenda supersedes the relevant parts or
document E/PC/T/W/64, and should be read in conjunction
wïth the Report of the Drafting Committee (E/Pc/T/34)
hereafter referred to as 'ID. C. Report". It incor-
porates proposals reported to the Secretariat ky
Delegations to 14 June 1947 inclusive (cf. E/PC/T/W/65,
69, 70, 101, 187, 191, 192, 195, 197).
In quotation of the proposed texts, where
practicable, deletions are indicated by square brackets,
and additions by underlining.
SECTION E - STATE TRADING.
General note
The Czechoslovak Delegation W/187) submitting a
proposal for a new re-draft of the section on State-Trading
makes the following comment.:
The Czechoslovak Delegation wants to draw the
attention of the Preparatory Commiittee to the declarations
made by various delegations at the beginning of the Second
Session and also to the principle contained in the
Charter, i.e. that the Charter should enable all states
of whatever political, economical and social structure to
collaborate-peacefully in the attainment of the purposes
of the Charter. One of the very grave problems which
the Preparatory Committee has to solve is the economic
collaboration of countries which are "free-trade countries"
and countries which regulate their foreign trade. In
many respects the institutions and systems of these two
are quite similar but in other respects they differ.
Having considered this, the Czechoslovak Delegation
welcomes the New Zealand aLendment as submitted in
document E/PC/T/W/101 which it regards as the most
appropriate way to harmonize these various systems of
foreign trade. The Czachoslovak Delegation feels that
UNITED NATIONS
NATIONS UNIES E/PC/T/W/198.
page 2.
this amendment merits .a special section in the Charter,
since the system of control of foreign trade envisaged
there does not necessarily presume that trade has actually
to be conducted by state trading enterprises only and
operates through private or state enterprises. That is
why the Czechoslovak Delegation suggests that the New
Zealand amendment be placed first. The provisions con-
cerning state trading would follow.
As may be seen from the proposed Draft, the whole
text has been divided provisionally into 3 articles.
The final numbering or these articles and their heading
has been left to the consideration of the Sub-committee
concerned.
(Texts of article as proposed in the Czechoslovak
amendment will be found below under corresponding
headings.)
Article 31 - Non-discriminatory Administration of State-
trading Enterprises.
The United States Delegation (W/195) suggests to
change the heading ot this Article as follows:
Non-discriminatory administration of Most-
favored-nation treatment by state trading enterprises
Paragraph 1
1. The reservations referred to in the D.C. Report under
(b) was made by the delegate for Czechoslovakia who
objected to the inclusion of the words distribute or
produce" in the first sentence.
2. The Czechoslovak Delesation (W/187) proposes the
following text (for comment of General Note):
"1. If any Member establishes or maintains enter-
prises, whether state ow4ned or private which have
been granted exclusive or special privileges, formally
or in effect, to import or export,. the commerce of
other Members shall be accorded treatment no less
favourable than that accorded to any country other
than that in which the enterprises are located in
respect of purchases and sales. To this end such
enterprises shall, in taking their external purchases
or sales of any product, be .Sifluenced by commercial
considerations, such as price, quality, .marketability,
transportation and other terms of purchase or sale, E/PC/T/W/198
page 3.
having due regard to any differential customs
treatment maintained consistently with other
provisions of this Charter."
3. The United States Delegation (W,/195) proposes to
divide paragraph in two sub-paragraphs (a) and (b), and
to delete from the present text of pararaph 1 the words
after "or produce any product," beginning with "the
commerce of other Members...." to ".... this Charter."
and to replace them by:
"such enterprise- shall, in purchases or sales
affecting international trade, act in a manner con-
sistent with the Principle of general most-favored-
nation treatment which is applied in Article 14 to
govermental measures affecting private trade."
and to add new sub-paragraph (b) as follows:
"(b) The provisions of sub-paragraph (a) of this paragraph
shall be understood to require that such enterprises
shall. make any purchases or sales affecting inter-
national trade sololy in accordance with commercial
considerations such as price, quality, marketability,
transportation and other terms of purchase or sale
and, through public offers or bids.or otherwise,
shall afford the enterprises of all Members full
opportunity to compete for participation in such
purchases or sales,"
Comment of the United States Delegation:
The changes in this paragraph are proposed (1) to
simplify the previous language and to eliminate the
possible inference that most-favored-nation treatment by
state enterprises might require identical prices to
buyers and sellers in different markets; (2) to provide,
in the phrase beginning with "shall afford" a necessary
implementation of the obligation to act in accordance
with commercial considerations. E/PC/T/W/198
page 4
Paragraph 2.
1. The three delegates reserving their position
against the insertion of the words "or for use in the
production of goods for sale' represented Chile,
Czechslovakia and New Zealand.
2. - The Czechoslovak Delegation- (W/187) proposes the
following changes (for comment see General Note):
"2. The provision of paragraph 1 of this
Article [relating elating to purchases or imports by state
enterprises shall not apply to purchases or imports
of products for [re-sale (or for use in the
production of goods for sale). With respect to
purchases or imports by state enterprises of
products for governmental use and not for
se-sale (or for7 use in the production of goods
for sale ) ,7. However, the Members shall
accord to the commerce of [the] other Members
fair and equitable treatment, having full regard
to all relevant circumstances."
3. The United States Delegation (W/195) proposes the
following changes:
"2. The provisions of paragraph 1 of this
Article relating to purchases or imports by state
enterprises] shall apply to [purchases or] imports
of products for resale or for use in the production
of goods for sale. With respect to [purchases or]
imports [by state enterprises] of products for
governmental use and [not] neither for resale [or]
nor for use in the. production of goods for sale,
Members shall accord to the Commerce of other
Members fair. and equitable treatment [having full
regard to all relevant circumstances]" page 5
Comment of the United States Delegation:
These changes are intended to express more simply and in
fewer words the intent of the London draft. Except for
the removal of to brackets from that draft, these changes
do not affect the substance of the paragraph.
Paragraphs1 and 2.
Attention is drawn to the use of the word "commerce"
(three times). In other articles of the Charter (e.g.
Nos. 1, 32, 34, 39, 48, 49, 53 and 61) the word "trade"
is used.
Paragraph 3.
1. The reservations as to the two alternatives in the
wording of this paragraph were made by the delegates
for Chile, Czechslovakia and New Zealand. The last-
mentioned two delegates declared their preference for
Alternative A (if they would have to choose between A
and B).
2. The Delegation of Belgium-Luxembourg (W/65)
proposes to re-word paragraph 3 as follows:
"3. This Article shall apply when a Member
Government, directly or indirectly, whether by
virtue of legal provisions, or under arrangements
granting special or exclusive privileges, or merely
in fact, exercises effective control or management
of enterprises, organs or agencies or of their
trading operations only."
Comments by the Delegation of Belgium-Luxembourg:
This amendment is designed to make the provisions of
Article 31 applicable to organizations in the import
policy of which the state lias no direct right of
intervention. In addition, it amalgametes alternatives
A and B so that the situations envisaed in each of them
are covered by the Charter and the application of
Article 31 is not unduly limited by its wording.
3. The Czechoslovak Delegation (w/187) proposes to
limit the text of this paragraph to the first sentence,
deleting both Alternatives A and B of the text of the
D.C. Report.
4, The United States (W/195) proposes the adoption of
Alternative B of the text of the D.C. Report. E/PC/T/W/198
page 6-
5. The Chinese Deleration (W/70) proposes to substitute for
Alternatives A and B the following:
"or over whose trading operations a Member government
is, under the arrangements providing for the special
or exclusive privileges granted to the enterprise,
legally entitled to exercise effective control.'
6. The Chilean Delegation (W/192) proposes to substitute for
Alternatives A and B the following
"It shall not anoly, however, to enterprises whose.
external purchases or sales of any product are influenced
solely by commercial considerations."
or alternatively:
"or over whose trading operations a Member Government
exercises effective control by virtue of the special
or exclusive privileges granted to the enterprise. It
shall not apoly, however, to enterprises whose external
purchases or sales of any product are influnced solely
by commercial considerations."
Comments by the Chilean Delegation:
The sole ,purpose of the Dronosed amendment is to make
perfectly clear when an enterprise, organ or agency is to be
considered as a State Trading Enterprise, within the meaning
and subject to the Provisions of Article 31. It is our under-
standing that what is fundamentally pursued by this Arcicle is
that there shall be "non-discriminatory administration of State
Trading Enterprises", that all business transactions
carried out by these so-called State Enterprises, who receive
special or exclusive privileges from a Member Government, shall
be influenced solely by commercial and not by political
considerations. If this is so, we consider that the definition
approved in New York, even if one or the other of the two
alternatives is added to Paragraph 3, is absolutely inadequate
and vague. There are, to be surc, quite a number of enterprises
"who would come under that definition and yet their external
purchases and/or sales are influenced solaly commercial
considerations and not by political considerations. W
consider that the provisions of Article 31 should rnot b
applicable to these latter enterprises. E/PC/T/W/198
page 7
Article 32 - Expansion of Trade by State Monopolies
of Individual Products.
4 The United States.Delegation (W/195) proposes0 to change
the heading of this Article as follows;
"Expansion of international trade by Members having,
state monopolies [of individual pjroducts]"
Paragraph 1.
1. The Chinese Delegation (W/69) proposes to delete in the
first sentence, lines 13, 14, 15 and 16, the words:
"to limit or roduce the protection afforded through
the operation if the monopoly to domestic users of the
monopolised Product or"
2. The Czechoslovak Delegation (W/187) proposes the following
changes:
"If any Member, other than a Member subject to the
proivsions [of Article 33] concerning a complete
monopoly of foreing trade establishes, maintains or
authorizes enterprises having, 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 the
trade with that Member in the product concerned, enter
into nogotiatioins with such Member [or Members in the
manner .... - .... over recent periods.] in irder to
assure exports or imports of the monopoly
adif:cudtte auant`ties at reasonable prices."
Comment of the Czechoslovak Delegation (of. also remarks
In the General note):
As to the D C.Draft of Article 32 the Czechoslovak Delegation
felt itself obliged to simplify the whole text because it
appeared during the tariff negotiations that the provisions of
Article 32 were impracticable. In this respect the Czechoslovak
Delegation should like to draw the attention of the Preparatory
Committee to the report of the International Chamber of Commerce,
(Document E/PC/f/44, page 32, Article 32, Expansion of Trade by
State Monopolies of individual Products). The text of the ICC's
comment on- this Article runs as follows: E/PC/T/W/198
page 8
This article, by attempting to establish principles for the
Price policies of State monopolies of individual products,
énters into a very difficult and controversial field and
establishes rules which will inevitably become the object of
future controversy. The I.C.C. considers it preferable to
limit the Charter's provisions concerning the behaviour of
State monopolies of individual products to simple general
rules, leaving the detailed Interpretation and administration
of those rules to the I.T.O. itself.,
3. Thc United States Delegation (W/195) proposes to change
the present paragraph 1, and to add a new paragraph, as follows:
"1. If any Member [other than a Member subject to the
provisions of Article 33] establishes, 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] a substantial interest in trade with
that Member in the product concerned, [enter into]
carry out negotiations with such Member or Members in
the manner provided for in respect of tariffs under
Artlcle 24 [with regard to] with the object of achieving
( a) in the case of an export monopoly, arrangements
designed to limit or reduce the protection afforded
through the operations 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 monopoly
[the maximum margin by which the price for an imported
product charged by the monopoly in the homo 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 E/PC/T/W/198
page 9
processing-and for a rensonable margin of profit.
For the purpose of applying this margin regard may be
had to average landed costs and selling orices of the
monopoly over recent periods] arrangements designed to
limit or reduce the protection afforded through the
oeration of the monopoly to domestic producers of the
product or a competing product, or arrangements designed
to increcase the total imports of the product, Any
arrangement . negotiated under this paragraph shall be
subject to the provisions of Article 31, and any Member
entering into negotiations under this paragraph shall'
afford to other interested Members an opDortunity for
consultation with respect to the proposed arrangements,
2. Any Member. substantially interested in the exportation
of a commodity to a Member maintaining such a monopoly
affecting such product may, subject to the terms of
paragraph 1 of this Article, request the other Member to
negotiate:
(a) the maximum margin by which the price at which the
monopoly sells the product concerned exceeds the
price paid-to sellers of Member countries.
(b) the total quantity of the commodity which the Member
maintainig the monopoly shall agree to import from
all sources, or
(c) any other arrangement to accomplish the purpose of
paragraph 1 of this Article.,
Provided that, any such arrangement shah be subject to the
provisions of Article 31, and the Member requesting a
negotiation under this paragraph shall immediately notify the
Organization of the nature of this request." E/PC/T/W/198
page 10
Comment of the United States Delegation:
The London draft of paragraph 1, 2 and 3 of Article 32
established too rigid a formula for the application of the
general provision calling for negotiations with Members
maintaining state enterprises or monopolies. The proposed
changes provide for the negotiation of any arrangement under
these circumstances which is consistent with the principles
of Articles 31 and 32.
(Note: Paragraph 2 of the D.C.Report, page 28,
to become Paragraph 3).
Paragraph 2.
1. The Czechoslovak Delegation (W/187) proposes the deletion
of this paragraph (cf. General Note),
2. The United States Delegation (W/195) proposes the following
amendment (for comment see under paragraph 1):
/7 3. Any Member newly establishing any import monopoly ln
respect of any nroduct shall not create a margin as
defined in paragraph 1 (b)7 establish a degree of protection
to its domestic producers.greser than that represented by
the maximum rate of import duty which may have been
negotiated in regard to that product pursuant to Article
24, or otherwise, through the operation of such monopoly,
impair the value to other Members of such negotiated
concession, "
paragraph 3.
1. The words "from Members" were placed in square brackets
for consideration at the Second Session (D.C,Report, pagen 28-29).
2. The Czochoslovak Delegation (W/187) proposes the deletion
of this paragraph (for comment sec General Note).
3, The United States Delegation (W/195) proposes the deletion
of this paragraph in conjunction with the changes suggested by
this Delegation in respect of paragraph 1 and 2, which make
paragraphs 3 and 4 unnocessary in view of the flexibility thus
provided in Article 32, E/PC/T/W/198
page 11
Suggested new paragraph.
The Netherlands Delegation (W/19l) proposes to insert
the following new paragraph 4, and to change the existing
paragraph 4 into 5.
"4, In any case of a monopoly of the importation or
exportation of a primary product, either the Member
applying the measure or the Member or Members having an
interest in trade in the product concerned, considering
that the difficulty may be determined to be a special
difficulty of the kind referred to in Chapter VII, are
entitled to ask that the negotiations provided for in
paragraph 1 of this Article follow the procedure laid
down in that Chapter.
Comment of the Netherlands Delegation:
The Delegation is of the opinion, that there is a string
analogon between the protection included in a subsidization on
agricultural products and the protection, which may be included
in the price margin charged or allowed by a monopoly of the
importation or exportation of such products. In some cases it
is such more helpful if the negotiations are on the multilateral
basis no provided for in Char.-er VII and are accompanied by a
study of the root causes of the problem, Therefore an additional
paragraph is proposed, which makes it optional for both
interested parties to resort to this means of consultation.
Paragrarph 4.
1. The United States Delegation (W/195) proposes the deletion
of this paragraph for the reasons mentioned under paràgraph 3.
2. The Czechoslovak Delegation (W/187) proposes to insert
between "revenue" and "purposes" at the end of the paragraph the
words
"health or security
3. The Norwegian Delegation (O/197) nroizocr ;Je following
changes in this paragraph:
"In applying the provision of this Article due regard shall
be had for the fact that some monopolies a.e established and E/PC/T/W/198
page 12
operated mainly for social, cultural, humanitarian or
revenue purposes. 1
Article 33 --Expansion of Trade by complete State Monopolies
of Import Trade.
1, The Drafting Committee did not discuss this Article which
the First Session had left for consideration at a later stage.
2. The United States Delegation (W/195) proposes to delete
this Article.
Comment of the United States Delegation:
In the revised form suggested, the provisions of Article 32 can
apply to any state trading country, including the countries
contemplated in Article 33, and this Article, therefore, is no
longer necessary.
3. The Czechoslovak Delegation (W/187) proposes to replace
the London text by the following (cf, under General Note):
"If representations according to Article 35 are made in
respect of state trading operations, the Member may with-
hold confidential information, relating to its national
security or which, if disclosed, would materially damage
the legitimate interests of the enter price concerned."
4I. The New Zealand Delegation (W/l01) proposes to replace in
the text of the London Charter, page 33, line 3, the word
"import" by the word "foreign", and to add a new paragraph as
follows:
112. (a) Any Member who although not establishing
or maintaining a complete or substantially
complete monopoly of its foreign trade
nevertheless establishes or maintains an
effective system of complete control of its
foreign trade shall promote the expansion of
its foreign trade with other Members, in
consonance with the purposes of this Charter.
To this end such Member shall undertake:- E/PC/T/W/198
page 13
(i) To make available, in any given
period, for e expenditure on imports -
after providing for debt repayment
and service charges and for any other
external charges or outlay - the whole of
the proceeds from its visible and invisible
exports in excess of the amount of its
monetary reserves determined to be
reasonable.
(ii) To consult with the Organization when
determining the given period referred
to in sub-paragraph (i) above and when
determining the level of its monetary
reserves to be regarded as reasonable.
(iii) To practise no discrimination between
the sources of supply of imports.
(iv) To have due regard, in controlling its
foreign trade, to the interests of
other Members.
(b) Where any other Member considers its interests
adversely affected by such control of foreign
trade the procedure laid down in Article 35
shall apply. "
Note. In the discussion of Article 4 in the Sub-Committee
on Chapter III (cf.E/PC/T/95, Page 3) the Delegate for New
Zealand stated that his Delegation would prefer not to
discuss the New Zealand Amendment to Article 4 (cf. E/PC/T/W.113)
until Article 33 and related parts of the Charter had been
discussed.. Until then the New Zealand Delegation would
reserve its position on Article 4, and subsequently might
wish to reopen the question of further amending that Article. |
GATT Library | vc790zc6733 | Second Session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Arrangeiments at Havana | United Nations Economic and Social Council, October 25, 1947 | United Nations. Economic and Social Council | 25/10/1947 | official documents | E/PC/T/266 and E/PC/T/228-267 | https://exhibits.stanford.edu/gatt/catalog/vc790zc6733 | vc790zc6733_92290342.xml | GATT_152 | 0 | 0 | |
GATT Library | hs042hb9668 | Second Session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Arrangeiments at Havana | United Nations Economic and Social Council, October 25, 1947 | United Nations. Economic and Social Council | 25/10/1947 | official documents | E/PC/T/266 and E/PC/T/228-267 | https://exhibits.stanford.edu/gatt/catalog/hs042hb9668 | hs042hb9668_92290342.xml | GATT_152 | 291 | 1,953 | UNRESTRICTED
ECONOMIC CONSEIL
D E C O N OM I Q U E E/PC/T/266
AND ECNMQE25 Oct. 19L47
SOCIAL COUNCIL ET SOCIAL ORIGINAL: ENGLISH
SEC ND SESSION OF TME PRErPARATORY C31O4iITTEE OF THE
UNITrD NATIONS CONFRRENCE ON TRADE AND EMPLOYMENT
ARRANGEIMENTS AT HAVANA
The Secretariat : ds received the following communication
from the Chairman Ef the Cuban Delegation:
October 2+, 1947.
Toe The Secretariat
From: The Cuban Delgation
We are extremely delighted te pass on to you the
enthusi;istic assurances received from Havarna by phone early
this morning, and confirmed by cable as well, te the effect
there ls ample and adequate office space available in Havana to
accommodate all Delegations and their respective staffs attending
the World Conference to convene November 21st.
There will be 120 offices in the Capitolio Building, the
Cuban Congress building. In addition, a new, very large, well--
equipped, attractive and comfortable building, to be dedicated
in conjunction with the Conference inaugural, is ready te meet
the requirements of any and all Delegations too.
A very rapid bus service will shuttle back-and-forth
between the Capitolio and annex office building so that no time
will be lost or inconvenience involved.
With the establishment of the above office space to
supplement the Capitolio quarters, and in view of the shuttle
service, we feel sure no unforeseen obstacle can prevent the
maximum efficiency .re are certain will prevail at Habana.
Because we feel the abôve news will completely allay any
existin, apprehension orn the part of doubtful Delegates, we
would appreciate your arranging to circulate this data
immediately; this morning if possible
Thanking you for your cooperation and courtesy, I amn
Yours sincerely,
(signed) S. I. Clark
Sergio I. Clark,
Chairman Cuban Del-gation
l.NlTEL) NTIU`NS
ïMTI1'1 NS UNL S |
GATT Library | vt882kb9854 | Second Session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Arrangements for Final Meeting | United Nations Economic and Social Council, October 26, 1947 | United Nations. Economic and Social Council | 26/10/1947 | official documents | E/PC/T/255 Add.1 and E/PC/T/228-267 | https://exhibits.stanford.edu/gatt/catalog/vt882kb9854 | vt882kb9854_92290324.xml | GATT_152 | 200 | 1,428 | ECONOMIC CONSEIL E/PC/T/255 Add.1
ECONSEI UE 26 Octoher 1947.
AND ECONOMIQUE
SOCIAL COUNCIL ET SOCIAL ORIGINAL: ENGLISH
SECOND SESSION OF THE PREPARATORY COMMITTES OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
Arrangements for Final Meeting.
Further to document E/PC/T/255, it should be noted that
before the Chirman of the Preparatory Committee delivers his
address at the Final Meeting, he will call on the Chairman of the
Tariff Agreement Committee to make a report and at the same time
to submit the text of the General Agreement on Tariffs and Trade.
This arrangement will conform with the procedure laid down in
documSnt E/PC/T/187.
DEUXIE.IVe SESSION DE LA. CONIMISSION PREPIjR. LTOf2E
DE LYL CONFERENCE DU COM1.XERCE ET DE L'EivÉLOI
DE L'ORoeJ9I3.JIQN DES N<TIONS UNIES.
'irraniements prévus pour la séance finale.
En référence au document E/PC/T/255, il convient de noter,
qu'avant de prononcer son discours le Président de la Commission
Préparatoire invitera le Président du Comité charge de l'accord
sur les Tarifs douaniers à fire rapport et en même temps à
soumettre le texte de l'Accord général sur le Tarif douanier et le
Commerce. Cet arrangement est conforme à la procédure fixée
dans le doctirent E/PC/T/187.
U.NIsTED NATIONS
.NATION!S VA'1ES
R:ESTRI CTED |
GATT Library | tq486fr0845 | Second Session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Arrangements for Production of the Schedule to the General Agreement on Tariffs and Trade following Decisions taken at the Meeting of Secretaries of Delegations on Thursday, 18 September, 1942 | United Nations Economic and Social Council, September 19, 1947 | United Nations. Economic and Social Council | 19/09/1947 | official documents | E/PC/T/210 and E/PC/T/210-212 | https://exhibits.stanford.edu/gatt/catalog/tq486fr0845 | tq486fr0845_92290265.xml | GATT_152 | 827 | 5,456 | UNITED NATIONS REJECTED
ECONOMIC CONSEIL E/PC/T/210
19 September 1947
AND ECONOMIQUE
SOCIAL COUNCIL ET SOCIAL ORIGINAL: ENGLISH
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT.
Arrangements for Production of the Schedule to the General
Agreement on Tariffs and Trade following Decisions taken at
the Meeting of Secretaries of Delegations on
Thursday, 18 September, 1942.
1. Translation.
(a) In view of the large amount of translating work, delega-
tions who are not undertaking translation themselves should
transmit consolidated lists for translation to the Secretariat
(Room 220) as soon as these lists are ready. It is desirable
that at least provisional consolidated lists should be submitted
as early as possible. Translations will be returned to Dele-
gations for checking.
(b) The question of whether the title "Annexe" used in the
French text of the Canadian list should be replaced by another
term has been referred for settlement to the Belgian, Canadian,
and French Delegations in consultation with M. Veillet-Lavallee
and also, if necessary, with the Legal Drafting Committee.
(c) Delegations which do not prepose to make both the English
and French texts authentic are requested to indicate, in the
manner prescribed by the Tariff Agreement Committee, in which
language the text will be authentic.
The Delegations of Belgium, Luxemberg, Netherlands, Canada,
Czechoslovakia, and France have stated that they can themselves
produce texts in both languages. The Delegations of Australia,
Brazil, China, Cuba, India, Norway, South Africa, United Kingdom,
and the United States can produce texts only in English. The
Delegations of Syria and Labanon will produce texts only in French. E/PC/T/210
page 2
2. Distribution of Work.
(a) Each Delegation will cut on stencils its final consoli-
dated Schedules as soon as these have reached definite shape.
(b) From these stencils a number of copies will be mimeographed
sufficient to supply each Delegation, and also the Secretariat,
with two or three copies.
(c) Each Delegation will then be able to check these copies
as to whether the concessions accorded to it have been incor-
porated, and for any other points that may require correction.
(d) Any pages requiring correction will have to be cut on new
stencils to replace the defective pages.
(e) The complete set of the finally approved stencils will then
be submitted to the Secretariat for the production of the
document.
3. Form of Schedules.
(a) The Tariff Agrement Committee is agreed that all Schedules
should take the general form of the Canadian Schedules which are
in the hands of all Delegations.
Care should be taken that on the left hand side sufficient space
is left to allows for possible binding.
(b) The Secretariat will issue a paper setting forth the actual
measurementd suggested for cach of the 3 columns which should be
adhered to as practicable. Tne columns should be
divided by vertical lines as in the Canadian Schedules.
(c) In accordance with a previous decision the words "Most-
Favoured-Nations Tariff" should appear only on the first page
of Part I and "Preferential Tariff" only on the first page of
Part II of coach Schedule.
(d) Following the decision of the Tariff Agreement Committee E/PC/T/210
page 3
regarding notes attached to the Tariff Schedules the position
of such notes cannot be expected to conform to a uniform pattern
but will depend upon the type and frequency of the notes and upon
the practices of the various countries.
(e) In respect of a tariff item which will appear only inpart
in the Schedule, each Delegation is free to employ the practice
normally used in its country.
(f) Schedules relating to separate dependent customs territor-
ies should appear under sub-headings and each such sub-Schedule
should be marked A, B, and C etc. Each sub-division should
contain both Parts I and II.
4. Typewriters, Stencils, Mimeographing, etc.
(a) As far as possible typewriters with "elite" (i.e. small)
type should be used in the production of stencils.
Delegations wishing to borrow or lend such typewriters should
contact Miss WATSON Ext. 2106.
(b) Delegations requiring blank stencils should also get in
touch with Miss Watson.
(c) The Delegations possessing mimeographing machines (Australia,
Canada, India, the Netherlands, New Zealand, the United Kingdom
and the United States) who wish to roll off preliminary copies
of their Schedules will do so themselves.
The UNITED STATES Delegation, and other Delegations possessing
mimeographing machines have expressed their willingness to allow
other Delegations the use of their machines for this purpose.
Delagations who do not wish to use their stencils for mimeograph-
ing preliminary copies, are required to send 3 carbon copies of
stencil to the Secretariat (Dr. EISNER, Room 212) where these
copies will be available for consultation. E/PC/T/210
page 4.
(d) The Delegations are requested to keep the number of
copies of the document, which they request in the mimeo-
graphed form, to the smallest possible figure.
Any inquiries regarding the further details of
procedure should be directed to Dr. C. F. EISNER,
Room 212, Ext. 2227. |
GATT Library | pn048dj9574 | Second Session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Arrangemets for Completion of Discussions regarding the General Agreement on Tariffs and Trade | United Nations Economic and Social Council, August 25, 1947 | United Nations. Economic and Social Council | 25/08/1947 | official documents | E/PC/T/187 and E/PC/T/186-189 | https://exhibits.stanford.edu/gatt/catalog/pn048dj9574 | pn048dj9574_92290241.xml | GATT_152 | 317 | 2,206 | E/PC/T/187
ECONOMIC. CONSEIL 25 August 1947
AND ECONOMIQUE ORIGINAL ENGLISH
SOCIAL COUNCIL ET SOCIAL
SECOND SESSION OF THE PREPARATORY COMMITTEE
OF THE UNITED NATIONS CONFERENCE ON TRADE
AND EMPLOYMENT
ARRANGEMETS FOR COMPLETION OF DISCUSSIONS REGARDING THE
GENERAL AGREEMENT ON TARIFFS AND TRADE
At the Executive Session held on 22 August, 1947,
the Preparatory Committee cons' dered arrangements for
completion of discussions regarding the General Agreement
on Tariffs and Trade, and reached the following agreement:
With the completion of the discussions on
the draft Charter there remains to consider
what arrangements would be appropriate for
completing the discussions on the General Agree-
ment on Tariffs and Trade.
The decision of the Preparatory Committee
to sponsor the tariff negotiations was taken on
the grounds that the carrying out of such
negotiations would facilitate the task of the
United Nations Conference on Trade and Employment,
and it was therefore within the mandate given to
the Preparatory Committee by the Economic and
Social Ccuncil (in this connection see the
Resolution of the First Session regarding the
Negotiation of a Multilaiteral Trade Agreement
Embodying Tariff Concessions - page 47 of the
Report of the First Session). This view was
not dissented from by the Economic and Social
Council.
It would therefore appear appropriate that
the text of the Agreement should be formally
reported to the Preparatory Committee upon the
conclusion of negotiations, and it is suggested
that the Preparatory Committee should lnstruct-
the Tariff Agreement Committee to continue In
being and to elaborate the text of an Agreement,-
The Tariff Agreement Committee should as soon
as its work is completed, make a report to the
Preparatory Committee submitting with the report
a text of the Agreement reached by the delegations
concerned.
The Preparatory Committee could then be
considered as having discharged its functions as
soon as a final report had been received from
the Tariff Agreement Committee.
UNITED NATIONS
NATIONS UNIES
UNRESTRICTED |
GATT Library | dg552dy8738 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Article 14. Preferential Arrangements | United Nations Economic and Social Council, July 19, 1947 | United Nations. Economic and Social Council | 19/07/1947 | official documents | E/PC/T/W/249 and E/PC/T/W/236-260 | https://exhibits.stanford.edu/gatt/catalog/dg552dy8738 | dg552dy8738_90050399.xml | GATT_152 | 0 | 0 | |
GATT Library | hw847wq8658 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Article 14. Preferential Arrangements | United Nations Economic and Social Council, July 19, 1947 | United Nations. Economic and Social Council | 19/07/1947 | official documents | E/PC/T/W/249 and E/PC/T/W/236-260 | https://exhibits.stanford.edu/gatt/catalog/hw847wq8658 | hw847wq8658_90050399.xml | GATT_152 | 404 | 2,660 | UNITED NATIONS
RESTRICTED
ECONOMIC CONSEIL E/PC/T/W/249
AND ECONOMIQUE ORIGINAL: ENGLISH.
SOCIAL COUNCIL ET SOCIAL
.
SECOND SESSION OF ON PREPARATORY COMMITTEE OF THE UNITED
NATIONS CONFERENCE ON TRADE AND EMPLOYMENT.
Preteaential Arrangements
-Paragraphs 2 and 3 of Article 14 concerning the maintenance
of preferantial arrangements have bean redrafted by the Sub-
Committee on Articles 14, 15 and 24. The proposed draft is
reproduced below and, in anticipation of its adoption by the
Preparatory Committee, the Sub-Committee wishes to obtain from
delegations any lists of preferential arrangements which are to
appear in Annexures to the Charter in terms of paragraph 2 (b)
and (d).
It would be appreciated if delegations which have such lists
but have not yet submitted them to the Secretariat would inform the
Execytuve Secretary, not later than Monday next, 21st July, of
their intention to provide lists for inclusion in the Annexures.
Article 14 provisional text;
Para. 2 The provisions of paragraph 1 of this Article
she not be construed to require the elimination,
except as provided in Article 24, 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 Annexure A
to this Charter, subject to the conditions set
forth therein;
(b) Preferences in force exclusively between two
or more territories which on 1 July 1939 were
connected by common sovereignty or relations
of protection or suzerainty and which are listed
in Annexures B, C, D ... of this Charter;
(c) Preferences in force exclusively between the
United States of America and the Republic of
Cuba;
( G) Preferences in force exclusively between
neighbouring countries listed in Annexures......
and ,..... of this Charter.
P. T.0.
NATIONS UNIES 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 24, or (b)
if not provided for under such agreements, the margin
existing either on 10 April, 1947, or on such earlier
date as may have been established for a Member as a
basis for negotiating the General areement on Tariffs
and Trade, at the option of such Member.
page 2
para, 3. |
GATT Library | xf323tr2334 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Article 14. Preferential Arrangements | United Nations Economic and Social Council, July 19, 1947 | United Nations. Economic and Social Council | 19/07/1947 | official documents | E/PC/T/W/249 and E/PC/T/W/236-260 | https://exhibits.stanford.edu/gatt/catalog/xf323tr2334 | xf323tr2334_90050399.xml | GATT_152 | 0 | 0 | |
GATT Library | pb541fw1540 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Article 18 | United Nations Economic and Social Council, July 21, 1947 | United Nations. Economic and Social Council | 21/07/1947 | official documents | E/PC/T/W/251 and E/PC/T/W/236-260 | https://exhibits.stanford.edu/gatt/catalog/pb541fw1540 | pb541fw1540_90050401.xml | GATT_152 | 179 | 1,267 | RESTRICTED UNITED NATIONS NATIONS UNIES
ECONOMIC CONSEIL E/PC/T/W/251
-AND ECONOMIQUE 21 July 1947
SOCIAL COUNCIL ET SOCIAL ORIGINAL: ENGLISH
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT.
ARTICLE 18
It is proposed by the Delegation of the United States
that the text of sub-paragraph (c)(iii) of paragraph 2 in
document E/PC/T/1O3 be replaced by the following:
"The Organization, in agreement with the
International Monetary Fund, shall formulate
rules governing the conversion of foreign
currencies 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 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 Organization, any Member may
employ in respect of any such foreign currency
rules of conversion for the purposes of paragraph
2(a) which are designed to reflect effectively
the value of such currency in commercial trans-
actions."
ITED NATIONS
TIONS UNIES |
GATT Library | yq869kd7114 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Article 18. Amendment submitted by the Chinese Delegation | United Nations Economic and Social Council, August 12, 1947 | United Nations. Economic and Social Council | 12/08/1947 | official documents | E/PC/T/W/283 and E/PC/T/W/261-306 | https://exhibits.stanford.edu/gatt/catalog/yq869kd7114 | yq869kd7114_90050435.xml | GATT_152 | 224 | 1,545 | UNITED NATIONS NATIONS UNIES
RESTRICTED
ECONOMIC CONSEIL E/PC/T/W/283
AND ECONOMIQUE 12 August 1914
SOCIAL COUNCIL ET SOCIAL ORIGINAL: ENGLISH
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT.
ARTICLE 18
Amendment submitted by the CHINESE DELEGATION.
Note to Paragraph 5 formerly 2(c):
The Preparatory Committee considered that the altera-
tion of a rate of exchange which results from a change in
the established par value of a currency or, in cases where
there is no par value, from a change reflected by changes
in the current value of such currency in commercial
transactions, would not constitute a change in thc method
of converting currencies under sub-paragraph (d) of para-
graph 5.
DEUXIEME SESSION DE LA COMMISSION PREPARATOIRE DE LA
CONFERENCE DU COMMERCE ET DE L'EMPLOI DE
L'ORGANISATION DES NATIONS UNIES
ARTICLE 18
Amendement présenté par la DELEGATION CHINOISE
Note sur le paragraphe 5 [anciennealinéa 2(c)]
La Comission préparatoire a consideré que la modifica-
tion d'un taux de change résultant soit d'un changement de la
parité établie d'une monnaie, soit, dans le cas où il n'existe
pas de parité, d'un changement se manifestant par des fluctua-
tions de la valeur courante de cette monnaie dans les
transactions commercials, ne constituerait pas une modifica-
tion du mode de conversion des monnaies visé à l'alinéa (d) du
paragraphe 5.
O.NS UNIES |
GATT Library | mx669tt5772 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Article 18 - Tariff valuation | United Nations Economic and Social Council, June 7, 1947 | United Nations. Economic and Social Council | 07/06/1947 | official documents | E/PC/T/W/180 and E/PC/T/W/177-207 | https://exhibits.stanford.edu/gatt/catalog/mx669tt5772 | mx669tt5772_90050321.xml | GATT_152 | 288 | 1,919 | UNITED NATIONS NATIONS UNIES RESTRICTED
ECONOMIC CONSEIL E/PC/T/W/180
AND ECONOMIQUE 7 June, 1947
SOCIAL COUNCIL ET SOCIAL ORIGINAL: ENGLISH
SECOND SESSION OF THE PREPRETORY COMIITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
ARTICLE 18 - TARIFF VALUATION
Report of Special Committee on Paragraph 2(c)
The Special Committee submits the following draft subject
to the reservation of the representative of the United States that
he is unable to accept this draft unless the third paragraph is
retained:
"(c) Except as otherwise provided for this sub-division,
where it is necessary for the purposes or sub-division 2(a) of
this Article 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 should be based on the par values of the
currencies involved as established pursuant to the articles of
Agreement of the International Monetary Fund or by special exchange
agreements entered into pursuant to Article 29 of the Charter.
Where no such par value has been established, the conversion
rate shall reflect effectively the current value of such currency
in commercial transactions.
[Any member may establish for any foreign currency in respect
of which official multiple rates are in force, a single rate
designed to reflect effectively the current value of such currency
in commercial transactions.]
No member shall alter the method of converting currencies for
Customs purposes which is applicable in its territory on the day
of the signature of this Charter in such a manner as to increase
generally the amounts of duty payable. [The appreciation of a
currency which is recognized by a change in its established par value
shall not be considered a change in the method of converting currencies.]'' |
GATT Library | wq137fx2449 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Article 18 : Tariff valuation. Amendment proposed by the United Kingdom Delegation | United Nations Economic and Social Council, August 5, 1947 | United Nations. Economic and Social Council | 05/08/1947 | official documents | E/PC/T/W/262 and E/PC/T/W/261-306 | https://exhibits.stanford.edu/gatt/catalog/wq137fx2449 | wq137fx2449_90050414.xml | GATT_152 | 273 | 1,830 | UNITED NATIONS NATIONS UNIES RESTRICTED
ECONOM'C CONSEIL E/PC/T/W/262
AND ECONOMIQUE ORIGINAL: ENGLISH
SOCIAL COUNCIL ET SOCIAL
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERNCE ON TRADE AND EMPLOYMENT.
ARTICLE 18 ; TARIFF VALUATION
Amendment proposed by the United Kingdom Delegation
At the Thirty-Second Meeting of Cormmission A held on
Wednesday, 23rd July, the United Kingdom Delegate made a re-
servation regarding (1) the omission from paragraph 18 (2)(a)
(ii), as submitted by the Sub-Committee, of the words "between
independent buyer and seller" and (2) the terms of the second
note to the paragraph, in which reference is made to the
deletion of those words (E/PC/T/11+2, page 11).
The United Kingdom Delegation are still of opinion that
the concept of independence of buyer and seller is one which
should properly have been included in the text. In the inter-
ests of unanimity on this important Article they are, however,
prepared not to insist upon this point provided they can be
given satisfaction by amendment of the note. Their suggestion,
which if accepted would enable the United Kingdom Delegation
to withdraw their reservation and, it is thought, would not
do violence to the opinion of any other Member of the Commission,
is that the note referred .to should be replaced by the
following:-
"The Preparatory Committee considered that it
would be in conformity with Article 13 (2) (a) for a
member to construe the phrase "in the ordinary course
of trade", read in conjunction with "under fully com-
petitive conditions", as excluding any transaction
wherein the buyer and seller are not independent of
each other and price is not the sole consideration. |
GATT Library | yw803fn0121 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Article 18, Tariff valuation. Report of special Committee | United Nations Economic and Social Council, June 5, 1947 | United Nations. Economic and Social Council | 05/06/1947 | official documents | E/PC/T/W/166 and E/PC/T/W/151-176 | https://exhibits.stanford.edu/gatt/catalog/yw803fn0121 | yw803fn0121_90050303.xml | GATT_152 | 0 | 0 | |
GATT Library | bf821yg2028 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Article 18, Tariff valuation. Report of special Committee | United Nations Economic and Social Council, June 5, 1947 | United Nations. Economic and Social Council | 05/06/1947 | official documents | E/PC/T/W/166 and E/PC/T/W/151-176 | https://exhibits.stanford.edu/gatt/catalog/bf821yg2028 | bf821yg2028_90050303.xml | GATT_152 | 0 | 0 | |
GATT Library | rv244hk1597 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Article 18, Tariff valuation. Report of special Committee | United Nations Economic and Social Council, June 5, 1947 | United Nations. Economic and Social Council | 05/06/1947 | official documents | E/PC/T/W/166 and E/PC/T/W/151-176 | https://exhibits.stanford.edu/gatt/catalog/rv244hk1597 | rv244hk1597_90050303.xml | GATT_152 | 455 | 3,022 | UNITED NATIONS NATIONS UNIES
ECONOMIC CONSEIL RSTRICTED
AND ECONOMIQUE E/PC/T/W166
SOCIAL COUNCIL ET SOCIAL 5 June 1947.
SECOND SEESION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT.
ARTICLE 18, TARIFF VALUATION
REPORT OF SPECIAL COMMITTEE.
The Special Committee appointed on 4 June, 1947 submits
to the ad hoc sub-committee considering Article 18 of the
proposed Charter a revised text for paragraph 2(a) of that
Article, as set forth below. This text is based on the
Canadian proposal in document. W/24; the words in brackets are
to be deleted and the underscored words are to be added:
(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 like merchandise, and should not be based on the
value of merchandise of national origin or on
arbitrary or fictitious values.
(ii)"Actual value" [shall] should be based on 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 between independent buyer
and seller, such or.like [imported] merchandise [in
comparable quantities and under similar conditions of
sale] is sold or offered for sale [with price as the
sole consideration] under fully competitive conditions.
To the extent to which the price of such or like
merchandise is governed by the quantity in a
particular transaction, the price to be considered
should uniformly be related to either (a) comparable
quantities, or (b) quantities not less favorable 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) [If such] When the actual value [be] is
not ascertainable[on the basis of] in accordance wïth
[the preceding] paragraph (ii), [then] the value for
duty purposes should be based on the nearest ascertain-
able equivalent of such value.
The Special Committee believe that this text would permit
the adoption of an administrative rule of presumption that "actual E/PC/T/W/166
page 2
value" is represented by the invoice price, plus any non-
included charges for legitimate costs which are proper elements
of "actual value" and plus any abnormal discount or other
reduction from the ordinary competitive price.
It is also believed that the prescribed standard of
"fully competitive conditions'' will meet the contention of
one country that it should not be required to consider
distributors' prices which involve speoical discounts limited
to exclusive agents.
In view of a difference of opinion. in the Special
Committee, as to whether the phrase between independent buyer
and seller" is redundant in view of the inclusion of "under
fully competitive. conditions" this point is submitted for
special consideration by the sub-committee. |
GATT Library | xv810xk0357 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Article 24. Observations by the Norwergian Delegation | United Nations Economic and Social Council, August 13, 1947 | United Nations. Economic and Social Council | 13/08/1947 | official documents | E/PC/T/W/288 and E/PC/T/W/261-306 | https://exhibits.stanford.edu/gatt/catalog/xv810xk0357 | xv810xk0357_90050440.xml | GATT_152 | 222 | 1,524 | UNITED NATIONS NATIONS UNIES
ECONOMIC CONSEIL RESTRICTED
AND ECONOMIQUE E/PC/T/W/288 13 August 1947
SOCIAL COUNCIL ET SOCIAL ORIGINAL: ENGLISH
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT.
ARTICLE 24.
Observations by the Norwergian Delegation,
Document E/PC/T/136, dated the 29th July, 1947, has,
as far as it is known, not yet been dealt with. It is,
however, noted that the United Kingdom Delegation in
Document E/PC/T/W/270 of the 12th August7 1947, submits
certain amendments to the said paper. It is also noted that
the report of the Legal Drafting Committee on Chapter 1, 11
and VIII (E/PC/T/159) on page 20 uses texts taken from the
same paper.
In order not to find themselves before a more or less
accomplished fact the Norwegian Delegation deem it necessary
to state that they are not in agreement with the
recommendations of the Tariff Negotiations Working Party
contained in document E/PC/T/136. The Norwegian Delegation
could not subscribe to the fundamental alternation of article
24 which these recommendations would imply. We have worked
on the assumption of the general lines of article 24 remaining
intact all through the meetings in London, in New York and for
four months here in Geneva and can not admit the radical
change contemplated by the Tariff Negotiations Working Party. N'existe pas.
Does not exist.
E/PC/T/W259 |
GATT Library | vp650qp0038 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Article 25, 2 (a). Amendment proposed by the Norwegian Delegation | United Nations Economic and Social Council, June 26, 1947 | United Nations. Economic and Social Council | 26/06/1947 | official documents | E/PC/T/W/227 and E/PC/T/W/220-235 | https://exhibits.stanford.edu/gatt/catalog/vp650qp0038 | vp650qp0038_90050375.xml | GATT_152 | 0 | 0 | |
GATT Library | rm995dy8206 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Article 25, 2 (a). Amendment proposed by the Norwegian Delegation | United Nations Economic and Social Council, June 26, 1947 | United Nations. Economic and Social Council | 26/06/1947 | official documents | E/PC/T/W/227 and E/PC/T/W/220-235 | https://exhibits.stanford.edu/gatt/catalog/rm995dy8206 | rm995dy8206_90050375.xml | GATT_152 | 190 | 1,241 | UNITED NATIONS
ECONOMIC
AND
SOCIAL COUNCIL
NATIONS UNIES
CONSEIL
ECONOMIQUE
ET SOCIAL
RESTRICTED
E/PC/T/W/227
26 June 1947
ORIGINAL: ENGLISH
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
Article 25, 2 (a).
Amendment proposed by the Norwegian Delegation.
Replace in the last sentence of Article 25, 2(a) the
words "1. July 1949" by "1. March 1952".
Contents: The purpose of the amendment is to
introduce the same date for the removal of the quantitative
restrictions and for the removal of the exchange restrictions
in accordance with Article XIV, section 4, of the Agreement
of the International Monetary Fund.
DEUXIEME SESSION DE LA COMMISSION PREPARATOIRE
DU COMMERCE ET DE L'EMPLOI
DE L'ORGANISATION DES NATIONS UNIES
Article 25, 2 (a)
Amendement présenté par la délégation de la Norvège.
Dans la dernière phrase de l'Article 25, 2 (a), remplacer
les mots "ler juillet 1949" par "ler mars 1952".
Commentaires : Cet amendement a pour but de fIxer la même
date pour la surpression des restrictions quantitatives et pour
la suppression des restrictions de change, conformément à l'Ar-
ticle XIV, section 4 des Statuts du Fonds monétaire International. |
GATT Library | sx740dj7444 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : ARTICLE 3. Amendment submitted by the United States Delegation as an alternative to the French amendment | United Nations Economic and Social Council, August 12, 1947 | United Nations. Economic and Social Council | 12/08/1947 | official documents | E/PC/T/W/284 and E/PC/T/W/261-306 | https://exhibits.stanford.edu/gatt/catalog/sx740dj7444 | sx740dj7444_90050436.xml | GATT_152 | 175 | 1,331 | UNITED NATIONS NATIONS UNISE
ECONOMIC CONSEIL RESTRICTED
AND ECONOMIQUE E/PC/T/W/284
SOCIAL COUNCIL 12 August 1947
ET SOCIAL ORIGINAL: ENGLISH
SECOND SESSION OF THE PREPARATORY COMMITTTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMETN
ARTICLE 3.
Amendment submitted by the United States Delegation
as an alternative to the French amendment
Il (a) essential to the allocation of products in short
supply; Provided that any such measures shall be
consistent with an equitable international distribution
of such products among the several consulting Member
countries and with multilateral arrangements directed
to this end,
--------------
DEUXIEME SESSION DE LA COMMISSION PREPARATOIRE
DE LA CONFERENCE DU COMMERCE ET DE L'EMPLOI
DE L'ORGANISATION DES NATIONS UNIES
ARTICLE 37
Amendement présenté par la delégation des Etats-Unis. comme
variante de l'amendement présente par la délégation francaise
II (a) essentielles à la répartition de produits en état de
pénurie, à la condition que toute mesure de cette nature
soit compatible avec une répartition internationale
equitable de ces produits entre les divers Etats Membres
consommateurs et avec les arrangements multilatéraux
conclus à cette fin. |
GATT Library | qg804wk4827 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Article 30. Amendment proposed by the Cuban Delegation | United Nations Economic and Social Council, June 11, 1947 | United Nations. Economic and Social Council | 11/06/1947 | official documents | E/PC/T/W/186 and E/PC/T/W/177-207 | https://exhibits.stanford.edu/gatt/catalog/qg804wk4827 | qg804wk4827_90050329.xml | GATT_152 | 133 | 1,028 | UNITED NATIONS NATIONS UNIES
RESTRICTED
ECONOMIC CONSEIL
AND ECONOMIQUE E/PC/T/W/186
June 11.1947
SOCIAL COUNCIL ET SOCIAL Original: ENGLISH.
SECOND SESSION OF THE PREPARATORY COMMITTEE
OF THE UNITED NATIONS CONFERENCE ON TRADE
.AND EMPLOYMENT
ARTICLE 30
Amendment proposed by the Cuban Delegation
Insert after paragraph 2 a new paragraph 3, as follows,
and change the numbers of paragraphs 3-6 correspondingly:
"3. If a Member, in which resources are as yet
relatively undeveloped, considers it necessary to
grant subsidies to foster its economic development,
it may do so, notwithstanding the provisions of
Article 15, by exempting in whole or in part
national products from duties or taxes on domestic
consumption, by remitting such duties or taxes
which have accrued, or by using the proceeds of such
duties or taxes to make payments to domestic producers." |
GATT Library | bt529fm9376 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Article 30. Amendment proposed by the United Kingdom Delegation | United Nations Economic and Social Council, June 10, 1947 | United Nations. Economic and Social Council | 10/06/1947 | official documents | E/PC/T/W/182 and E/PC/T/W/177-207 | https://exhibits.stanford.edu/gatt/catalog/bt529fm9376 | bt529fm9376_90050323.xml | GATT_152 | 383 | 2,636 | UNITED NATIONS NATIONS UNIES
RESTRICTED
ECONOMIC CONSEIL E/PC/T/W/182
AND ECONOMIQUE 10 June, 1947
SOCIAL COUNCIL ET SOCIAL ORIGINAL: ENGLISH
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
ARTICLE 30
Amendment proposed by the United Kingdom
Delegation.
Paragraph 2: add a new sub-paragraph (c), as follows:-
"The provisions of this paragraph shall not at any time
preclude a Member interested in the export of any
product, which considers that its interests are being
prejudiced by a subsidy applied, directly or indirectly,
in respect of the product. by a non-Member which is a
competing exporter, from subsidising its own exports to
any destination to whichl thal non-Member is exporting,
to the extent which the Member deems necessary to
neutralise the injury to its interests and for so long
as the non-Member's subsidy continues in effect, but
no longer. Provided that if any other Member considers
that its interests are being adversely affected by the
measure of counter-subsidisation applied by the first-
mentioned Member, these Members shall consult together,
and, if necessary with the Organization, in order to
reach a mutually satisfactory adjustment of the matter."
DEUXIEME SESSION DE, LA COMMISSION PREPARATPOIRE
DE LA CONFERENCE DU COMMERCE ET DE L' EMPLOI
DE L'ORGANISATION DES NATIONS UNIES.
ARTICLE 30
Amendement présenté par la délégation du Royaume-Uni.
Paragraphe 2: ajouter un nouvel alinéa (c), conçu comme suit:
"Les dispositions du prTsent paragraphe n'auront à aucun mo-
ment pour effet d'empêcher un Membre intéressé à l'exporta-
tion d'un produit quelconque, qui considère que ses intérêts
sont lésés par une subvestion appliquTe, directement ou in-
directement, au dit produit par un Etat non membre qui est un
exportateur concurrent, de subventionner ses propres exporta-
tions a destination de tout pays vers lequel cet Etat non
membre exporte, dans la measure que ledit Membre estimera néces-
saire pour neutraliser la préjudice causé-à ses intérêts,
et pendant aussi longtemps que la subvention accordée par 1'
Etat non membre continuera à exercer ses effets, mais non
pas -delà. Sous réserve, que si un autre Membre considère
que ses intérêts sont lésés par la contre-mesure de subvention
appliquée par le Membre premier nommT, ces Membres procFde-
ront à des consultations entree eux et, si nécessaire, avec
l'Orranisation, afin d'arrivcr à un règlement mutuellement
satisfaisant de la question". |
GATT Library | cp654jf2729 | Second Session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Article 30. Note by the Chairman of the Sub-Committee | United Nations Economic and Social Council, July 12, 1947 | United Nations. Economic and Social Council | 12/07/1947 | official documents | E/PC/T/127 and E/PC/T/124-135 | https://exhibits.stanford.edu/gatt/catalog/cp654jf2729 | cp654jf2729_92290153.xml | GATT_152 | 343 | 2,245 | RESTRICTED
ECONOMIC CONSEIL E/PC/T/127
AND ECONOMIQUE 12 July 1947
SOCIAL COUNCIL ET SOCIAL ORIGIINAL: ENGLISH
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
ARTICLE 30
Note by the Chairman of the Sub-Committee
The Sub-Committee dealing with Article 15 has asked the
Sub-Committee on Article 30 to consider a point raised by the
South African Delegate regarding paragraph 3 of Article 15.
As this request was received after the Sub-Committee on
Article 30 had completed its Report for submission to
Commission B, I suggest that this matter should be raised in
Commission during the discussion on Article 30.
The point in question concerns the South African
Delegate's objection to the inclusion of the word "transport-
ation" in paragraph 3 of Article 15. He has pointed out,
inter alia, that internal transport services sometimes
discriminate against imported products, and recognised that
the inclusion of the reference to transportation in paragraph 3
was intended to stop this form of discrimnation. He main-
tained, however, that no attempt was made in the Charter to
prevent other forms of discrimination on the part of transport
services, for example, the granting of reduced charges on -
goods for export.
Commission B is asked to state its view as to whether
this type of export subsidisation, to which the South African
Delegate has drawn attention, is prohibited under Article 30.
If this is not the case, the Commission is asked to consider
whether it is desirable to amend Article 30 so as to prevent
this type of discrimination in transport charges.
It would appear to me that, under the nev text of
Section D - Subsidies (E/PC/T/124), this type of subidization
would be subject to the provisions of Article I if it "operates
directly or indirectly to increase exports of any product..."
and to the provisions of Article II if it "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...".
UNlTED NATIONS
NATIONS UNIES |
GATT Library | jv690sv9228 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Article 32. Amendment proposed by the Netherlands Delegation | United Nations Economic and Social Council, June 12, 1947 | United Nations. Economic and Social Council | 12/06/1947 | official documents | E/PC/T/W/191 and E/PC/T/W/177-207 | https://exhibits.stanford.edu/gatt/catalog/jv690sv9228 | jv690sv9228_90050335.xml | GATT_152 | 240 | 1,597 | ECONOMIC CONSEIL RESTRICTED
AND ECONOMIQUE E/PG/T/W/191
12 June 1947
SOCIAL COUNCIL ET SOCIAL ORIGINAL: ENGLISH
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
ARTICLE 32
Amendment proposed by the Netherlands Delegation.
Between paragraphs 3 and 4 insert a new paragraph, and
correspondingly change 4 to 5.
4. In any case of a monopoly of the importation or exportation
of a primary product, either the Member applying the measure or
the Member or Members having an interest in trade in the product
concerned, considering that the difficulty may be determined to
be a special difficulty of the kind referred to in Chapter VII,
are entitled to ask that the negotiations provided for in
paragraph 1 of this Article follow the procedure laid down in
that Chapter.
Comments:
The delegation is of the opinion, that there is a striking
analogon between the protection included in a subsidization on
agricultural products and the protection, which may be included
in the price margin charged or allowed by a monopoly o! the
importation or exportation of such products. In some cases it
is much more helpful in the negotiations are on the multilateral
basis as provided for in Chapter VII and are accompanied by a study
of the root causes of the problem. Therefore an additional
paragraph is proposed, which makes it optional for both interested
parties to resort to this means of consultation.
UNITED NATIONS
NATIONS UNIES |
GATT Library | sh037mt4090 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Article 32. Amendment proposed by the Netherlands Delegation | United Nations Economic and Social Council, June 12, 1947 | United Nations. Economic and Social Council | 12/06/1947 | official documents | E/PC/T/W/191 and E/PC/T/W/177-207 | https://exhibits.stanford.edu/gatt/catalog/sh037mt4090 | sh037mt4090_90050335.xml | GATT_152 | 0 | 0 | |
GATT Library | fs007zm4126 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Article 37 | United Nations Economic and Social Council, July 24, 1947 | United Nations. Economic and Social Council | 24/07/1947 | official documents | E/PC/T/W/255 and E/PC/T/W/236-260 | https://exhibits.stanford.edu/gatt/catalog/fs007zm4126 | fs007zm4126_90050406.xml | GATT_152 | 235 | 1,641 | UNITED NATIONS NATIONS UNIES
ECONOMIC CONSEIL RESTRICTED
AND ECONOMIQUE E/PC/T/W/255
SOCIAL COUNCIL ET SOCIAL 24 July 1947
ORIGINAL : ENGLISH
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT.
Article 37
The Netherlands Delegation proposes to insert
in Article 37 of the Charter, after sub-paragraph k
the following sentence :
"(1) necessary to protect the rights of the
grower who improves plants of commercial
use by selection or other scientific
method."
Comment In order to prevent undesirable utilization
of plants, improved by cultivators or scientific insti-
tutions it is deemed necessary to provide for special
measures, eventually involving the control of the ex-
port of this material.
The attention is drawn to the fact that the
F.A.O. is preparing a proposal for creating a right
of patent for improved plants, which might necessitate
certain restrictions or even prohibition of the export
of such material.
In the absence of such internationally adopted
measures, it is anyhow important for countries dependent
on highly developed agricultural enterprises to enforce
a protection for scientifically improved planting-
material, in the same way as the right of patent con-
fers to improvements or inventions in industrial pro-
cesses. As a matter of fact it has been shown in
several countries that no equal protection can be
ensured without a strict control on the export of the
material in question.
Geneva, July 24th, 1947.
TIONS UNIE |
GATT Library | hk072tg9568 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Article 37 | United Nations Economic and Social Council, August 14, 1947 | United Nations. Economic and Social Council | 14/08/1947 | official documents | E/PC/T/W/293 and E/PC/T/W/261-306 | https://exhibits.stanford.edu/gatt/catalog/hk072tg9568 | hk072tg9568_90050444.xml | GATT_152 | 228 | 1,646 | RESTRICTED
UNITED NATIONS ECONOMIC NATIONS UNIES CONSEIL E/PC/T/W/293
AND ECONOMIQUE 14 August 1947
SOCIAL COUNCIL ET SOCIAL ORIGINAL : ENGLISH
SECOND SESSION OF THE PREPARATION COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
Article 37
The following is proposed by the United States
Delegation after consultation with the United Kingdom and
French Delegations:
Il (a) Essential to the acquisition or distribution of
products in general or local short supply; Provided that any
such measures shall be consistent with any multinlatrale
arrangements directed to an equitable international distribu-
tion of such products or, in the absence of such arrangements,
with the principle that all Members are entitled to an
equitable share of the international supply of such products.
DEUXIEME SESSION DE LA COMMISSION PREPARATOIRE DE LA
CONFERENCE DU COMMERCE ET DE L'EMPLOI DE L'ORGANISATION DES
NATIONS UNIES
Article 37
La délégation des Etats-Unis, après s'être concertée
avec les délégations du Royaume-Uni et de la France, propose
l'amendement suivant:
II (a) essentielles à l'achat et à la répartition de
produits pour lesquels se fait sentir une pénurie générale
ou locale; toutefois, lesdites mesures devront être
compatibles avec tous accords multilatéraux destinés à
assurer une répartition internationale équitable de ces
produits ou, en l'absence de tels accords, avec le principe
selon lequel tous les Etats Membres ont droit à une part
équitable de l'offre internnationale desdits produits.
.
. |
GATT Library | hb947cj9246 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Article 37 | United Nations Economic and Social Council, July 21, 1947 | United Nations. Economic and Social Council | 21/07/1947 | official documents | E/PC/T/W/252 and E/PC/T/W/236-260 | https://exhibits.stanford.edu/gatt/catalog/hb947cj9246 | hb947cj9246_90050402.xml | GATT_152 | 143 | 1,079 | UNITED NATIONS NATIONS UNIES
RESTRICTED
ECONOMIC CONSEIL E/PC/T/W/252
AND ECONOMIQUE 21 July 1947
SOCIAL COUNCIL ET SOCIAL ORIGINAL: ENGLISH
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT.
ARTICLE 37
- The Delagation for Czechoslovakia proposes that sub-
paragraph (g) be amended to read as follows:
"(g) Necessary to secure compliance with
laws or regulations which are not inconsistent
with the provisions of Chapter V, such as,
those relating to the enforcement of state
trading monopolies operated under Articles
31 and 32, customs regulations, the protection
of patents, trade marks and copyrights, and
the prevention of deceptive practices."
Note. This proposal gives affect to the recommendation of
the Sub-Committee on Articles 25 and 27 that sub-paragraph
(f) of Article 25: 2 should be transferred to Article 37 as
suggested by the United States Delegation in document W.208. |
GATT Library | mp156wt6669 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Article 37 | United Nations Economic and Social Council, July 22, 1947 | United Nations. Economic and Social Council | 22/07/1947 | official documents | E/PC/T/W/252.Rev.1 and E/PC/T/W/236-260 | https://exhibits.stanford.edu/gatt/catalog/mp156wt6669 | mp156wt6669_90050403.xml | GATT_152 | 142 | 1,083 | UNITED NATIONS NATIONS UNIES
RESTRICTED
ECONOMIC CONSEIL E/PC/T/W/252.Rev.1
AND ECONOMIQUE 22 July 1947
SOCIAL.COUNCIL ET SOCIAL ORIGINAL: ENGLISH
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT.
ARTICLE 37
The Delegation or Czechoslovakia proposed that sub-
paragraph (g) be amended to read as follows:
"(g) Necessary to secure compliance with such laws
or regulations as those relating to the enforcement
of state trading monopolies operated under Articles
31, 32 and 33, customs regulations, the protection
of patents, trade marks and copyrights, the
prevention of deceptive practice, and others
which are not inconsistent- with the provisions of
Chapter V."
Note. This proposal gives effect to the recommendation of
the Sub-Committee on articles 25 and 27 that sub-paregraph
(f) of Article 25:2 should be transferred to Article 37 as
suggested by the United States Delegation in document
W.208. |
GATT Library | tx727zf4397 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Article 37. Amendment submitted the French Delegation (see document E/PC/T/154, page 49) | United Nations Economic and Social Council, August 12, 1947 | United Nations. Economic and Social Council | 12/08/1947 | official documents | E/PC/T/W/281 and E/PC/T/W/261-306 | https://exhibits.stanford.edu/gatt/catalog/tx727zf4397 | tx727zf4397_90050433.xml | GATT_152 | 132 | 919 | UNITED NATIONS
ECONOMIC
AND TIONS UNIES
SOCIAL COUNCIL
NATIONS UNIES RESTRICTED
E/PC/T/W/281
CONSEIL 12 August 1947
ECONOMIQU E ORIGINAL FRENCH-ENGLISH
ET SOCIAL
SECOND- SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
ARTICLE 37
Amendment submitted the FRENCH DELEGATION
(See document E/PC/T/154, page 49)
II (2) necessary to ensure to a consuming country an
equitable share of any product essential and in
short supply to it.
DEUXIEME SESSION DE LA COMMISSION PREPARATOIRE DE LA
CONFERENCE DU COMMERCE ET DE L 'EHPLOI DE
L'ORGANISATION DES NATIONS UNIES
ARTICLE 37
Amendment présenté par la DELEGATION FRANCAISE
(Voir le Document E/PC/T/154, page 49)
Il (a)
nécessaires pour assurer à un pays consommateur
une part équitable dans l'approvisionnement de
tout produit qui, pour lui, est essentiel et en
état de pénurie. |
GATT Library | tr145nq2094 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Article 37. New Paragraph to Article 37 proposed by the New Zealand Delegation | United Nations Economic and Social Council, August 9, 1947 | United Nations. Economic and Social Council | 09/08/1947 | official documents | E/PC/T/W/269 and E/PC/T/W/261-306 | https://exhibits.stanford.edu/gatt/catalog/tr145nq2094 | tr145nq2094_90050421.xml | GATT_152 | 157 | 1,154 | UNITED NATIONS
ECONOMIC
AND
SOCIAL COUNCIL
NATIONS UNIES
CONSEIL
ECONOMIQUE
ET SOCIAL
RESTRICTED
E/PC/T/W/269
9 August 1947
ORIGINAL :ENGLISH
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE TRADE AND EMPLOYMENT.
ARTICLE 3.
New Paragraph to Article 37 proposed by the
New Zealand Delegation.
"Necessary for the operation of domestic
stabilization schemes, involving the limitation
of exports so as to assure at stabilized prices
to domestic producers supplies of materials or
other commodities essential for the maintenance
of a domestic industry."
DEUXIEME SESSION DE LA COMMISSION PREPARTOIRE DE
LA CONFERENCE DU COMMERCE ET DE L'EMPLOI DE
L'ORGANISATION DES NATIONS UNIES
ARTICLE 37
Addition d'un paragraphe nouveau à l'Article
3 propose par la delegation de la Nouvelle
Zélande.
"Nécessaires à l'exécution de programmes de
stabilisation interilure, impliquant la
limitation dos exportations de manière a
assurer, à des prix stabilisés, l'appro-
visionnement des producteurs nationaux en
matières premières ou autres produits
indispensables et maintien d'une industrie
nationale." |
GATT Library | bk771ct7505 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Article 37. Proposals for consideration by Commission A. Wednesday 16th July | United Nations Economic and Social Council, July 15, 1947 | United Nations. Economic and Social Council | 15/07/1947 | official documents | E/PC/T/W/245 and E/PC/T/W/236-260 | https://exhibits.stanford.edu/gatt/catalog/bk771ct7505 | bk771ct7505_90050395.xml | GATT_152 | 602 | 3,855 | UNITED NATIONS
ECONOMIC
AND
SOCIAL COUNCIL
NATIONS UNIES
CONSEIL
ECONOMIQU E
ET SOCIAL
RESTRICTED
E/PC/T/W/245
15 July 1947
ORIGINAL: ENGLISH
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATINOS CONFERENCE ON TRADE AND EMPLOYMENT.
Article 37
Proposals for consideration by
COMMISSION A
Wednesday 16th July
1. Sub-paragraph (u)
It is proposed that the following comment should be.
included in the Commission' Report
"The Commission considers that it may be
advantageous to include an explanatory note in
the Report of the Preparatory Committee. This
might read as follows:
'If a country decides to restrict the
importation of goods in order to protect its
human, animal or plant life or health, it
should be able to provide proof that it would
take internal measures of protection
corresponding to thoe it takès against import,
if the same conditions against which the
protective measures are taken should prevail
also in the importing country.
2. Proposed new paragraph
During a discussion on Article 15 in the Sub-
Commiittee on Articles 14, 15 and 24 it was proposed that
the use of differential. internal taxes for the purpose
of giving effect to price controls maintained by a country
undergoing shortages subsequent to the war should be
permitted for a transitional period. Therefore, the Sub-
Comittee has suggested that paragraph 2(a) of Article 25,s E/PC/TW/245
page 2
which now permits the use of quantitative restrictions for
various transitional purposes, should be moved to Article 37
(general exceptions) and should be broadened to cover all
measures otherwise proscribed by Chapter V. The effect of
this would be to permit, during the postwar transitional
period, the use of differential internal taxes and internal
mixing regulations as well as quantitative restrictions in
order to distribute goods in short supply, to give effect to
price controls based on shortages and to liquidate surplus
stocks or economic industries carried over from the war
p eriod.
This proposed was referred to the Sub-Committee on
Articles 25 and 27 which has agreed in principle to the removal
of paragraph 2(c) from Article 25, but without any commitment
as to its applicability to measures other than quantitative
restrictions or as to the precise text.
It is proposed that the new paragraph of Article 37
would read as follows:
"2. Nothing in Chapter V shall be construed to
prevent the adoption or enforcement by any Member
of measures:
(a) Essential to 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;
(b) Essential to the control of prices by Member
country undergoing shortages subsequent to the Wa;r
(c) Essential to the orderly liquidation of temporary
surpluses of stocks owned or controlled by the
governirient of any Member, or of industries
developed in any Member country owing to the
exigencies of the war which it would be uneconomic
te manintain in normal conditions; provided that
such measures shall not be instituted by any
Member after the day on which this Charter enters
into force except after consultation with other
interested Member with a view to appropriate
international action.
Measures instituted or maintained under this paragraph
which are inconsistent with the other provisions of Chapter V
shall be removed as soon as the as ls th- conditions giving rise to
then have ceased, and in anny eartervent t r than July 1, 1949,
provided that this period nay, with the concurrence of the
Organization, be extended in respect of the application of
any particularo aensure t ny particular product by any
paMemrticular ber for such further perheiOrganizationods as t
may"s specify |
GATT Library | dr045rd5385 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Article 38. Territorial Application of Chapter V - Frontier Traffic - Customs Unions. Amendment Proposed by the Delegation of Lebanon | United Nations Economic and Social Council, June 11, 1947 | United Nations. Economic and Social Council | 11/06/1947 | official documents | E/PC/T/W/184 and E/PC/T/W/177-207 | https://exhibits.stanford.edu/gatt/catalog/dr045rd5385 | dr045rd5385_90050327.xml | GATT_152 | 0 | 0 | |
GATT Library | tm866gr8152 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Article 38. Territorial Application of Chapter V - Frontier Traffic - Customs Unions. Amendment Proposed by the Delegation of Lebanon | United Nations Economic and Social Council, June 11, 1947 | United Nations. Economic and Social Council | 11/06/1947 | official documents | E/PC/T/W/184 and E/PC/T/W/177-207 | https://exhibits.stanford.edu/gatt/catalog/tm866gr8152 | tm866gr8152_90050327.xml | GATT_152 | 199 | 1,335 | .
UNITED NATIONS
ECONOMIC
AND
SOCIAL COUNCIL
NATIONS UNIES
CONSEIL
ECONOMIQUE
ET SOCIAL
RESTRICTED
E/PC/T/W/184
11 June 1947
ORIGINAL: ENGLISH
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT.
Article 38. Territorial Application of Chapter V -- Frontier
Traffic -- Customs Unions.
Amendment Proposed by the Delegation of Lebanon:
Add a new sub-paragraph (c) to paragraph 2 of Article 38, as
follows:
"(c) The creation of a free trade area by the conclusion among
Members belonging to the same economic region, of a free trade
agreement not involving the adoption of a common tariff or
customs administration. "
DEUXIEME SESSION DE LA COMMISSION PREPARATOIRE
DE LA CONFERENCE DU COMMERCE ET DE L'EMPLOI
DE L'ORGANISATION DES NATIONS UNIES
Article 38
Application territoriale du Chapitre V - Trafic
frontalier - Unions douanières.
Amendement propose par la dTlegation du Liban
Ajouter au par. 2 de l'article 38 un nouvel alinéa (c) ainsi conçu:
" (c) A la création d'une zone de libres échanges commerciaux
résultant de la conclusion, entre des Etats Membres
appartenant à la même rTegion économique, d'un accord
instituant la librtT des¦ éhangesc sans entreaner
l'adoption 'dun tarifcommuo ou d'une administration
des douanes cmmune."o |
GATT Library | hz262vr4405 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Article 4. List of Termitories of the United State of America. Referred to in sub-paragraph 2(a) | United Nations Economic and Social Council, July 11, 1947 | United Nations. Economic and Social Council | 11/07/1947 | official documents | E/PC/T/W/242 and E/PC/T/W/236-260 | https://exhibits.stanford.edu/gatt/catalog/hz262vr4405 | hz262vr4405_90050392.xml | GATT_152 | 115 | 888 | UNITED NATIONS
ECONOMIC
AND
SOCIAL COUNCIL
CONSEIL
ECONOMIQU E
ET SOCIAL
RESTRlGTED
E/PC/T/'W/242
11 July 1947
ORIGINAL: ENGLISH
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE vGeiITTEE OF THE
UNITED NEIONS CAONFANDEREPLOYMENTNCE ON TR.E iEM2OMYZIET
Article 4
LIST OF TERMIATOSRIES OF THE UNITED STTE
OF AMERICA
Refeh rr to in sub-paragrap'.(a)
United States of America (customs territory)
DependenUt territories of Amerciathe ited States of Jrice
Republic of the Philippines.
OMMISSION PREPARATOIRE[DEUXIEv SESSION DE LA CSSION PREPARATOIR3
IDE LA CONERSIICE DU CO E DE L'EvMLOI
DE L'ORGANISATION DES NATIONS UNIES
Articlo14
LISTE DES TERRITOIRES DES ETATS-UNIS D'AMERIQUE
mentionn& au paragraph 2 (a)
Etats-Unis d'Amrnriqu (torritoiro douanier)
AmériqueeMéRIQUEATerritoires dépendant des Etatis d'ÀAérique
République des Philippines.
NATIONS UNIES |
GATT Library | sq433xw7525 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Article 69 (formerly Article 61). Voting. Alternative Drafts, proposed by the United States Delegation Implementing Annex B Document E/PC/T/143, 1 August 1947 | United Nations Economic and Social Council, August 15, 1947 | United Nations. Economic and Social Council | 15/08/1947 | official documents | E/PC/T/W/298 and E/PC/T/W/261-306 | https://exhibits.stanford.edu/gatt/catalog/sq433xw7525 | sq433xw7525_90050450.xml | GATT_152 | 527 | 3,257 | UNITED NATIONS NATIONS UNIES RESTRICTED
E/PC/T/W/298
ECONOMIC CONSEIL 15 August, 1947
AND ECONOMIQUE ORIGINAL: ENGLISH
SOCIAL COUNCIL ET SOC!AL
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
ARTICLE 69 (formerly Article 61)
VOTING
Alternative Drafts, proposed by the United States
Delegation Implemanting Annex B Document E/PC/T/143,
1 August 1947
ALTERANATIVE A
1. Each member shall have one vote in the Conference.
2. Except as otherwise provided in this Charter, -
decisions of eho Coeforence shall be taken by a
majority of theeM.mbers present anvoting .
ALTERNATIVE B
1. Each Member shall neva ln the Confercecc the
numbr of votes allocated to it in pursuance of the
provisions of Annex. tthisi. Charter.
2. Except as otherwisprovided jdin this Charter,
decisions of the Conferncshall albe taken by a
simple majority of the votes cast.
Annexeferred to in paragraph 1 of Al Alternative B above
e number of votes allocatedteo eachac Member shall be
calculated by a formulcontaining the following factors:-or
(a) 1 vote for eve 10 million of population
(b)- 1 vote for every 50 million U.S. dollars of
external trade.
(c) 1 vote for every 500 million U.S. dollars of
national income.e
(d 1 vote for every 10% of the percentage of
:external rade to nnational income
(Oe 100' basic votes E/PC/T/W/293
Page 2.
-2-
For the purposes of the initial allocation of votes
the factors (b), (c) and (d) shall be calculated on the
average of the last thrce 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 calculations of (b), (c) and (d) to be made
at the time of the periodic review provided for in Article 72,
paragraph 8, shall be based on the average of the three
immediately preceding calondar years.
ALTERNATIVE C
1. Each Member shall have in Conference 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 Conference shall be taken by a
majority of the Members present and voting.-
Annex referred to in paragraph 1 or Alternative C above
Tha number of votes allocated to each Member shall be
calculated by a formula containing the following factors:-
(a) 1 vote for overy 50 million U.S. dollars of foreign
trade.
(b) 1 vote for every 500 million U.S. dollars of
national income,
(c) 1 vote for every 25 U.S. dollars of foreign trade
per capita.
(d) 10 basic votes. E/PC/T/W/293
Page 3
-3-
For the purposes of the initial allocation of votes the
factors (a), (b) and (c) 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 calculations of (a), (b) and (c) to be made
at the time of the periodic review provided for in Article 72,
paragraph C, shall be based on the average of the three
immediately preceding calendar years. |
GATT Library | nq332xt1356 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Article 72 (Composition of the Executive Board) | United Nations Economic and Social Council, August 18, 1947 | United Nations. Economic and Social Council | 18/08/1947 | official documents | E/PC/T/W/303 and E/PC/T/W/261-306 | https://exhibits.stanford.edu/gatt/catalog/nq332xt1356 | nq332xt1356_90050455.xml | GATT_152 | 1,176 | 7,395 | UNITED NATIONS NATIONS UNIES
RESTRICTED
ECONOMIC CONSEIL E/PC/T/W/303
AND ECONOMIQUE 18 August 1947
SOCIAL COUNCIL ET SOCIAL ORIGINAL: ENGLISH
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
ARTICLE 72
(Composition of the Executive Board)
Commission B agreed on 17 August to present three alterna-
tive texts of Article 72. The text of Alternative A (prepared
by the Committee) as agreed on that date appears below. It is
followed by texts of Alternative B (prepared by the Norwegian
Delegate) showing the amendments proposed by the Cuban
Delegate and of Alternative C (prepared by the Australian
Delegate) showing the amendments proposed by the United Kingdom
Delegate. Commission B has not yet adopted the texts of
Alternatives B and C.
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 America and either
Belgium and the Netherlands alternating every three years or
the Customs Union of Belgium, Luxembourg and the Netherlands
should these States desire to be represented as a unit;
If the Customs Union of Belgium, Luxembourg and the Nether-
lands as such should not desire to appoint a representative
on the Board, Luxembourg would fall under paragraph 1(d) of
- this Article.
The Preparatory Committee was not able to examine fully the
conception of giving membership in the Board to customs
unions, This matter may need to be considered more
thoroughly by the World Conference. E/PC/T/W/303
page 2
(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 Arabia,
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 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 may be
formed, the method of reallocating seats where necessary,
and other related matters.
3. The Members elected to the Executive Board shall
normally be elected for terms of three years. The Coilference
shall establish rules with regard to these terms designed
to ensure a reasonable measure of continuity in representa-
tion on the Board.
4, During the time that any State mentioned in paragraph
1(a) of this Article is not a Menber of the Organization, the
size of the Executive Board shall be reduced accordingly. E/PC/T/W/303
page 3.
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 twcnty-eight,
those States shall be entitled to elect one, two, three or
four Members to the Board respectively.
7. The number of Members on the Executive Board may, upon a
recormmendation of the Board, be increased by the Conference
by a two-thirds majority of the votes cast.
8. Notwithstanding the provisions of Article 92, any amendment
of' this Article relating to paragraph 1(a) or to the election
of Mombers 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. The Excutive 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 E/PC/T/W/303
page 4.
may be immediately re-elected on the expiration of the term
for which they have been elected.
2. The number of Members on the Exective Board may, upon a
recommendation of the Board, be increased by the Conference by
a two-thirds majority of the votes cast,
3. The Members elected to the Exoeutive 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
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 detor-
mined by the Conference at [three yeary] intervals of three
years by a two-thirds majority of Members present and voting,
shall be entitled to membership of the Board.
3. [Nine] 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 Statese Union of Soviet Socialist Republics
and the Customs Union of Belgium, Luxembourg and
the Netherlands 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 end E/PC/T/W/303
page 5.
of one year and of three 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.
(b) During any tine that the number of Members of the
Organization is less than twenty-eight the numbers six, two
and two shall be substituted for the numbers nine, three and
three respetively 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
Article: |
GATT Library | kq462qz0559 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Article 72 (Composition of the Executive Board) | United Nations Economic and Social Council, August 18, 1947 | United Nations. Economic and Social Council | 18/08/1947 | official documents | E/PC/T/W/303 and E/PC/T/W/261-306 | https://exhibits.stanford.edu/gatt/catalog/kq462qz0559 | kq462qz0559_90050455.xml | GATT_152 | 0 | 0 | |
GATT Library | qx087wj9013 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Article 88. Amendment suggested by Delegation of Australia | United Nations Economic and Social Council, August 18, 1947 | United Nations. Economic and Social Council | 18/08/1947 | official documents | E/PC/T/W/307 and E/PC/T/W/307-344 | https://exhibits.stanford.edu/gatt/catalog/qx087wj9013 | qx087wj9013_90050459.xml | GATT_152 | 139 | 1,117 | UNITED NATIONS NATIONS UNIES
RESTRICTED
ECONOMIC CONSEIL E/PC/T/W/307
AND ECONOMIQUE 18 August 1947.
SOCIAL COUNCIL ET SOCIAL ORIGINAL: ENGLISH
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
Article 88
AMENDMENT SUGGESTED BY DELEGATION OF AUSTRALIA
After further consideration by the Australian
Government, the Australian Delegation proposos the deletion
of the following words in paragraph 1 of Article 88
(Document T/159) "Executive Board or the".
Comment.
The Delegation believes that a roquest from the
International Court for an advisory opinion is an important
act of policy, Any such opinion of the Court might have an
important effect on the Conference. It is the view of the
Australian Delegation that the decision to approach the
Court, and the formulation of the question, are matters which
should be within the competence of the Conference alone. |
GATT Library | qh939st8331 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Article I, Par. 3. Proposal of the French and Czechoslovak Delegations | United Nations Economic and Social Council, September 2, 1947 | United Nations. Economic and Social Council | 02/09/1947 | official documents | E/PC/T/W/317 and E/PC/T/W/307-344 | https://exhibits.stanford.edu/gatt/catalog/qh939st8331 | qh939st8331_90050470.xml | GATT_152 | 332 | 2,310 | UNITED NATIONS NATIONS UNIES RESTRICTED
ECONOMIC CONSEIL E/PC/T/W/317
2 September, 1947 ORIGINAL: FRENCH
AND ECONOMIQUE
SOC IAL COUNCIL ET SOCIAL
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
ARTICLE I, PAR. 3.
Protocol of the French and Czechoslovak delegations.
3. The margin of preference on any product in respect of
which a preference is permitted under paragraph 2 of this
Article shasll not exceed:e iEpresentati.ves of the
d in the Tariff Schedules:;i-1ljvjea1lh of àusîtval.giunL,
e Schedules;uxemburg, Uni.red dtatos af Braz Canada
ference between e, Republic oa Chinti, Repuhb.ic of Cub
scheduledak Républic, French Reputblic, iMnia, Lanon,
New Zealand, Kingdom, Pakistan, Syria5 Union of
r.ted Kingdom of Grirçt Bri.tai.n and Noithern
- Ireland, and the United States G' America, agrec tthe
following interpretative notes relative to the reement:
ARTICLE I
The following kinds of customs action, taken in
accorith establ shceunmiform procedures, would
ary to a gciiera.l biiLding of margins of
preference:
(i) tho retop:.ci.LÛn ta an imported product
ai a tar:i`1' a12-s Cation or ralte O' duty,
properly aiplicaIle ta such product, in cases
the applicati'on ao .such classification
or ratu ao SUehl product 'rias tcampoLarily suspended
or inoperatlvJ cn 10 April 19147; and
(ii) tho application to a particular commodity
ite;n other than chat which was actually
applied to importations of that commodity on
10 April 1947, en cases in which the tariff law
clearly contemplates that such codity may be
nde-1. more -han one bariff' item.
NOTE: As requested at the 8th meotina ot 'he- Tari..fL Agreement
Committee (sec E/PC/T/TAC/PV/8', the Socartari.at has pre
draft of a protocol of interpretative notes. The
a draft consists of slightly modified versions of
approved by the Preparatory Committee for in-
ra.ot Charter ralatJ-ig to Articles, or parts
hich correspond to .^.rti.cles in the version of
grocc,,Lnt proszr.tcxl in E/PC/T/189. The
f the comparable notes in Lha Draft Charter has
.ly to tho extern; riece;3ary ta allow for the
and style tLpi-oy-i in tho Drait General
reement. |
GATT Library | vk371wg8297 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Articles 24 and 67. Amendments proposed by United Kingdom Delegation to be redrafted Articles 24 and 67 contained in the Report of the Tariff Negotiations Working Party /E/PC/T/136 | United Nations Economic and Social Council, August 12, 1947 | United Nations. Economic and Social Council | 12/08/1947 | official documents | E/PC/T/W/270 and E/PC/T/W/261-306 | https://exhibits.stanford.edu/gatt/catalog/vk371wg8297 | vk371wg8297_90050422.xml | GATT_152 | 247 | 1,671 | UNITED NATIONS NATIONS UNIES
RESTRICTED
ECONOMIC CONSEIL
AND ECONOMIQUE E/PC/T/W/270
12 August 1947
SOCIAL COUNCIL ET SOCIAL
ORIGINAL: ENGLISH
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE
UNITED NATIONS ON TRADE AND EMPLOYMENT
ARTICLES 24 AND 67
Amendments proposed by United Kingdom Delegation
to be redrafted Articles 24 and 67 contained in the
Reoirt if the Tariff Negotiations Working Party /E/PC/T/136/
1. Article 24 (1) (d): Delete the present text of sub-paragraph
(d) and substitute for it the amended paragraph number 2 on
page 4 of the Report. Then add a new sub-paragraph (e) as
follows:-
"(e) Any agreement resulting from negotiations pursuant
to this Article shall be incorporated in the
appropriate Schedule annexed to the General Agreement
on Tariffs and Trade signed at Geneva on ......
1947: Provided that
(i) the parties to such agreement are or
become contracting parties to the G.A.T.T.,
and
(ii) the other contracting parties to the
G.A.T.T. agree thereto."
2. Article 24: In paragraph numbered 2 on page 4 of the
Report line 16, for "pursuant to paragraph 1 of this Article"
read "pursuant to the General Agreement on Tariffs and Trade
and embodied in Part 1 of that Agreement."
3. Article 67: Paragraph 1, line 3: delete the words "and
arranging for".
4. Article 67: Parargraph 2: delete the present text and
substitute -
"The Tariff Committee shall consist of those contracting
parties to the General Agreement on Tariffs and Trade
which are Members of the Organisation". |
GATT Library | ny638sk5578 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Articles 34, 35 and 38. Amendments proposed by the United Kingdom Delegation | United Nations Economic and Social Council, June 5, 1947 | United Nations. Economic and Social Council | 05/06/1947 | official documents | E/PC/T/W/163 and E/PC/T/W/151-176 | https://exhibits.stanford.edu/gatt/catalog/ny638sk5578 | ny638sk5578_90050300.xml | GATT_152 | 222 | 1,463 | UNTED NATIONS
ECONOMIC
AND
SOCIAL COUNCIL
NATIONS UNIES
CONSEIL
ECONOMIQUE
ET SOCIAL
RESTRICTED
E/PC/T/W/163
5 June 1947
ORIGINAL:- ENGLISH
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT.
ARTICLES 34, 35 and 38
AMENDMENTS PROPOSED BY THE UNITED KINGDOM DELEGATION
ARTICLE 34:
ARTICLE 36:
Paragraph 1, line 14. After "such preference"
insert "at the request of such producers'
Government". Paragraph 3, line 12. After "the
Member taking such action" insert "or, in the case
of a Member at whose reques action has been taken
by another Member in connexion with a preference,
the trade of the Member making that request"......
The second paragraph should be transferred to
Article 86 (Interpretation and Settlement of
Disputes). In a separate paper the United Kingdom
delegation are proposing a new combined draft of
Article 86 and 35(2).
ARTICLE 8: Paragraph 2(b): read
"The formation of a Customs Union, provided that
(1) the duties and other regulations [etc., as in
present draft];
(2) where the countries which enter into the Union
are territories which grant preferences as
provided for in Article 14(2), the preferences
granted by the Union to other territories
which previously enjoyed preferences in any of
the constituent territories of the union shall
not on the whole be higher than the average
level of the preferences previously so granted." |
GATT Library | ft390wc9283 | Second Session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Base Date for Negotiations | United Nations Economic and Social Council, May 13, 1947 | United Nations. Economic and Social Council | 13/05/1947 | official documents | E/PC/T/68 and E/PC/T/66-91 | https://exhibits.stanford.edu/gatt/catalog/ft390wc9283 | ft390wc9283_92290077.xml | GATT_152 | 463 | 3,052 | ECONOMIC CONSEIL E/PC/T/68
AND ECONOMIQUE
SOCIAL COUNCIL ET SOCIAL
SECOND SESSION OF THE PREPARATORY COMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT.
BASE DATE FOR NEGOTIATIONS
As stated in Document E/PC/T/59 of 30 April, the Dele-
gations of countries which grant preferences informed the
Secretariat of the base dates selected by them in terms of
Annexure 10, Multilateral Trade Agreement Nootiations, of the
Report of the First Session (see Section E, Miiscellaneous
Rules for Guidance, page 49). The information received from
Delegations was given in that document, and is now reproduced
overleaf in a slightly amended form in the light of the further
comments and information supplied to the Secretariat.
In issuing this definitive statement, the Tariff Negotia-
tions Working Party wishes to remind Delegations that the
dates thus established are to hold good for all negotiations
of the country concerned with all other Members or the Pre-
paratory Committee and should not vary from member to member
or from product to product.
The Chilean De egation has pointed out that at the Drafting
Committee tte Chilean representative made a reservation re-
garding Article 14, paragraph 2 of the Charter. In accordance
with this reservation, the Chilean Delegation has submitted an
amendment to Article 14 2(c) (Document E/PC/T/W.27) and it
feels that this amendment will have had to be dealt with by
the Preparatory Committee before the Chilean Delegation is able
to reach any further decisions on the matter, including the
determination of a base date, if any.
In the light of the comment made by the Chilean Delega-
tion in regard to a base date, the Working Party recommends
that the Chilean amendment to Article 14, 2 (c) should be dealt
with at an early date by the Preparatory Committee in Executive
Session. The Working Party feels that the acceptance of this
procedure will expedite the tariff negotiations.
The Tariff Negotiations Working Party accordingly
recommends to the Preparatory Committee that the following be
formally noted as the dates established by the various Members
for the purposes of Articles 14 and 24:
UNITED NATIONS
NATIONS UNIES
RESTRICTED Australia
Benelux.
Brazil
Canada
Cuba
Czechoslovakia
France
India
Lebanon-Syria
New Zealand
Norway
South Africa
United Kingdom
Newtoundland
S. Rhodesia
Burma
Ceylon
Other overseas)
territories
United States
Base Ddtes
46
+ 15.10.46
18. 3.47
No preterences granted
1. 7.39
No base date indicated
No preferences granted
1. 3.42
No preferences granted
1. 1.39
10. 4.47.
. 30.11.39
29. 4.47
No preferences granted
1. 7.38
10. 4.47
- 10. 4.47
l0.'45.41
10. 4.47
10. 4.47
1. 4.47
1.. 1.45
4 On the understanding that this nomination is merely a
procedural. step which in no way implies any commitment
to or agreement with the principles of Articles 14 and
24 of the Draft Charter.
E/PC/T/68
page 2 |
GATT Library | jr408vm4312 | Second Session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Base Date for Negotiations | United Nations Economic and Social Council, May 13, 1947 | United Nations. Economic and Social Council | 13/05/1947 | official documents | E/PC/T/68 and E/PC/T/66-91 | https://exhibits.stanford.edu/gatt/catalog/jr408vm4312 | jr408vm4312_92290077.xml | GATT_152 | 0 | 0 | |
GATT Library | rw642mc4019 | Second Session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Base Date for Negotiations | United Nations Economic and Social Council, April 30, 1947 | United Nations. Economic and Social Council | 30/04/1947 | official documents | E/PC/T/59 and E/PC/T/44-66 | https://exhibits.stanford.edu/gatt/catalog/rw642mc4019 | rw642mc4019_92290067.xml | GATT_152 | 414 | 2,724 | UNITED NATIONS NATIONS UNIES
ECONOMIC CONSEIL RESTRICTED
AND ECONOMIQUE E/PC/T/59
SOCIAL COUNCIL ET SOCIAL 30 April 1947
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
BASE DATE FOR NEGOTIATIONS
Section E - Miscellaneous Rules for Guidance, of
Annexure 10 (Multilateral Trade Agreement Negotiations) of
the Report of the First Session of the Preparatory Committee,
contains certain important provisions regarding the establish-
ment of a date fixing the height of preferences in effect
prior to the tariff negotiations.
As Délegations will be aware, according to the above-
mentioned Section E, the base date for negotiations estab-
lished by any country granting preferences should hold good
for its negotiations on all products with all other Members
of the Preparatory Committee, and should not vary from
Member to Member or from product to product.
In addition, the attention of Delegations is drawn to
the contents of Articles 14 and 24 of the Charter as drafted
at present.
It appears as if the Preparatory Committee may wish to
adopt at an early stage the list of base dates communicated by
Delegations, in order that there may be general agreement on
the base dates to be employed. In anticipation, there is
submitted herabelow the latest information officially made
available to the Secretariat by Delegations:
P.T.O.
n rswrloxr ç
- rtT7 Australia
Bonelux
Brazil
Canada
Chile
China
Cuba
Czechoslovakia
France
India
Lebanon-Syria
New Zealand
Norway
South Africa
United Kingdom
Newfoundland
S. Rhodesia
Burma
Ceylon
Other overseas)
territories )
United States
Base Dates
* 15.10.46
1 . 3.47
1. 7.39
**
1. 3.42
1. 1.39
10. 4.47
30.11.39
29. 4.47
1. 7.38
10. 4.47
10. 4.47
1. 5.41
10. 4.47
10. 4.47
10. 4.47
1. 1.45
Delegations wishing to amplify or comment on the above,
are invited to communicate accordingly by May 5 with Mr. T.
Nassr or Mr. F. A. Haight, Room 212, Extension 2235.
* On the understanding that this nomination is merely a
procedural step which in no way implies any commitment
to or agreement with the principles of Articles 14 and
24 of the Draft Charter.
** The Chilean Delegation has stated that at the Drafting
Committee the Chilean representative made a reservation
regarding Article 14, paragraph 2 of the Charter; in
accordance with this reservation, the Chilean Delegation
will submit an amendment in the course of this Session
and, in view of this tact, it cannot establish a base
date for the negotiation of preferences.
E/PC/T/59
page 2
(prov.) |
GATT Library | xg009sq5271 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Belgium/Luxemberg Delegation. Note Concerning Specific Duties | United Nations Economic and Social Council, September 17, 1947 | United Nations. Economic and Social Council | 17/09/1947 | official documents | E/PC/T/W/341 and E/PC/T/W/307-344 | https://exhibits.stanford.edu/gatt/catalog/xg009sq5271 | xg009sq5271_90050496.xml | GATT_152 | 217 | 1,383 | UNITED NATIONS
.
.
.
ECONOMIC
AND
SOCIAL COUNCIL
NATIONS UNIES
CONSEIL
ECONOMIQUE
ET SOCIAL
RESTRICTED
E/PC/T/W/341.
17 September 1947.
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT.
Note Concerning Specific Duties.
If during the life of this Agreement a contracting
party effects a substantia decrease of increase in the par
value of its currency in accordance with the articles of
Agreement of the INTERNATIONAL MONETARY FUND, or under a
special exchange agreement concluded pursuant to paragraph 6
of Article XV, the Government of such country:
(1) In the case of depreciation, may adjust the various
specific duties to the new parity of its currency,
provided that:
(a) the depreciation exceeds 10%;
(b) the all-over incidence of the specific duties has
decreased after the depreciation by at least 20%
compared with the all-over incidence of these
specific duties either at the date of this Agree-
ment, or, for parties according to this Agreement,
at the date of their accession;
(c) the adjustment of the specific duties does not
exceed the proportion resulting from the comparison
of the two incidences defined under (b).
(2) In the case of appreciation, may adjust the various
specific duties to the new parity of its currency at
the request of another contracting party.
.
. |
GATT Library | zc425hd2653 | Second Session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Chairman's Committee (Heads of Delegations) Summary Record of the Seventeenth Meeting held on Wednesday, 29 October 1947, at 3 p.m | United Nations Economic and Social Council, October 31, 1947 | United Nations. Economic and Social Council | 31/10/1947 | official documents | E/PC/T/S/12 and E/PC/T/S/4-12 | https://exhibits.stanford.edu/gatt/catalog/zc425hd2653 | zc425hd2653_90260186.xml | GATT_152 | 359 | 2,434 | UNITED NATIONS NATIONS UNIES SECRET
E/PC/T/S/12
ECONOMIC CONSEIL 31 October 1947.
AND ECONOMIQUE Original: ENGLISH
SOCIAL COUNCIL ET SOCIAL
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT.
Chairman's Committee
(Heads of Delegations)
Summary Record of the Seventeenth Meeting held on
Wednesday, 29 October 1947, at
1. Arrangements for final Meeting of Preparatory Committee.
Mr. WILGRESS (Canada), Chairman of the Tariff
Negotiations Working Party, reported that, owing to the
technical problems presented in making the final run--off
of the Schedules attached to the General Agreement on
Tariff's and Trade, it would not be possible to have the
complete document ready for the final meeting of the
Preparatory Committee on October 30th. The Tariff
Negotiations Working Party recommended that, as delegations
had already seen the preliminary run-off or carbon copies
of all the Schedules, the Final Meeting should not be
delayed, and that, for the purposes of the ceremony of
signature, blank sheets should be added to those Schedules
which were ready, in order to make up the complete
document to approximately its final size. The Secretariat
would be left to complete the assembly of the whole
document as soon as possible.
After some discussion this recommendation was
unanimously accepted.
(p.t.o.) E/PC/T/S/12
page 2
2. Brazil and the Protocol.
Mr. FERREIRA BRAGA (Brazil) said that his government
was extremely anxious to sign the Protocol of Provisional
Application, but was faced with the constitutional problem
that the consent of parliament was needed and this could
not be obtained before November 15, 1947. He asked the
advice of the meeting as to whether, in the circumstances,
Brazil might sign the Protocol at Geneva.
In the course of discussion it became clear
that those countries signing the Protocol at Geneva
were constitutionally able to do so without the prior
approval of their parliaments. In the circumstances,
it was generally felt that Brazil, rather than join the
original signatories, should sign the Protocol as soon as
possible afterwards and thus lead the way for other
countries, signatories to the Final Act, which might now
be in a similar position to Brazil.
3. The meeting rose at 3.45 p.m. |
GATT Library | xh857yn7172 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Chapter 5 - General Commercial Policy. Proposal by Canadian Delegation | United Nations Economic and Social Council, May 6, 1947 | United Nations. Economic and Social Council | 06/05/1947 | official documents | E/PC/T/W/24 and E/PC/T/W/23-81 | https://exhibits.stanford.edu/gatt/catalog/xh857yn7172 | xh857yn7172_90050149.xml | GATT_152 | 276 | 1,851 | UNITED NATIONS NATIONS UNIES RESTRICTED
ECONOMIC CONSEIL E/PC/T/W/24 6 MAY 1947
AND ECONOMIQUE
SOCIAL COUNCIL ET SOCIAL
SECOD SESSION OF THE PREPARATORY COMMITTEE
OF THE UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT.
Chapter 5 - General Commercial Policy.
Proposal by Canadian Delegation.
Alternative text of Article 18, paragraph 2(a)
and addition to Article 21, paragraph 2, and Article 37,
18 2(a) The value for duty purposes of imported merchandise
should be based on the actual value of the imported
merchandise on which duty is assessed, and should not be
based on the value of merchandise of national origin or
on arbitrary or fictitious values.
"Actual value" shall be based on 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
between independent buyer and seller, such or like imported
merchandise in comparable qauantities and under similar
conditions of sale is sold or offered for sale with price
as the sole consideration.
If such actual value be not ascertainable on the
basis of the preceding paragraph, then the value for duty
purposes should be based on the nearest ascertainable
equivalent of such value,
21 2 "Such tribunals or procedures shall be independent of
the agencies entrusted with administrative enforcement
and their decisions shall be implemented by and shall
govern the practice of such agencies unless an appeal is
lodged with a court or tribunal of superior jurisdiction
within the time prescribed for appeals to be lodged by
importers."
37 (1) "Relating to the importation of goods the
production of which was prohibited in the country of
importation prior to 1 July, 1939." |
GATT Library | kn601vk0699 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Chapter V. Annotated Agenda prepared by the Secretariat for discussion of Articles 34, 35, 36 and 38 | United Nations Economic and Social Council, June 6, 1947 | United Nations. Economic and Social Council | 06/06/1947 | official documents | E/PC/T/W/175 and E/PC/T/W/151-176 | https://exhibits.stanford.edu/gatt/catalog/kn601vk0699 | kn601vk0699_90050314.xml | GATT_152 | 4,427 | 28,063 | UNITED NATIONS
ECONOMIC
AND
SOCIAL COUNCIL
NATIONS UNIES CONSEIL
ECONOMIQUE
ET SOCIAL
RESTRICTED
E/PC/T/W/175
6 June, 1947
ORIGINAL : ENGLISH
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT.
CHAPTER V.
Annotated Agenda prepared by the Secretariat for
discussion of Articles 34, 35, 36 and 38.
This Agenda supersedes the relevant parts of document
E/PC/T/W.64 and should be read in conjunction with the Report
of the Drafting Committee (E/PC/T/34) hereafter referred to
as "D.C. Report". This Agenda incorporates the proposals
reported to the Secretariat by delegations up to and including
5th June 1947, as set forth in the following E/PC/T documents:
Proposed by the Delegations of:
Australia .... ....
Belgium .... ....
Chile .... ....
Cuba .... ....
Czechoslovakia .... ....
France .... ....
United Kingdom ... ....
United States .... ...
Document
W.170
w.167
W.173
W.172
W.171
W.168 & 169
W.161 & 163
W.165 E/PC/T/W/175
page 2.
Chapter V - General Commercial Policy.
Section F. Emergency Provisons - Consultation
Article 34. Emergency Action on Imports of Particular Products.
Paragraph 1.
1. The Belgian Delegation proposes that the words in
brackets, lines 8 - 14, be deleted (W.167). The following is
given as the reason for this proposal:
"Article 34 provides an escape clause the importance of which
should not be underestimated. The words enclosed in brackets
greatly enlarge its scope to the sole advantage of producers
in a territory receiving the benefits of a preferential
system.''
2. The United Kingdom Delegation proposes that the
words "at the request of such producers' Government" be
inserted after ''preference" in line 14 (W.163).
3. The United States Delegation suggests the following
changes (W.165):
(a) The insertion after "free" in line 15 of the
words "in respect of such product, and to the extent and
for such time as may be necessary to prevent such injury."
(b) The deletion of the words "in respect of such
product" in lines 15 and 16.
(c) The deletion of the comma after the word "part"
in line 16.
(d) The deletion of all the words after "concession"
in line 17.
4. If the last sentence is retained the insertion of
the words "'or remove'' in the last line after the word "prevent"
may be considered.
Paragraph 2.
1. The three delegates who maintained their views that
action should not be permitted without prior consultation
represented Canada, Chile and Cuba (D.C. Report, page 29).
2. The delegate for Canada also maintained that if
action without prior consultation was permissible, immediate
counter-action should also be permitted (D.C. Report, pages 29-30).
3. The Belgian Delegation proposed (W. l67):
(a) To add the following to the first sentence:
"Such written notice must specify which producers are
injured or likely to be injured and the territories in
which they are located. " E/PC/T/W/175
page 3
(b) To add the following at the end of the paragraph "and
provided that notice in writing is given of the producers
injured or likely to be injured and the territories in
which they are located".
The Belgian Delegation gives the following explanation:
"The written notice should make clear the reasons for the
adoption of such action so that Members have in their
possession all the data necessary to form an opinion and
determine their policy.
Further, if the words enclosed in brackets in paragraph 1
are retained, states affected must know which are the terri-
tories on whose behalf emergency action is being taken so
that they may be able to take counter-measures equivalent
to the additional privileges granted by paragraph 1."
Paragraph 3
1. The Belgian Dalegation propose to add after the words
"taking such action" in the 12th line, the words "and of the
States within whose territory the producers injured or likely
to be injured are located" (W.167).
The Belgian Delegation states that this addition will
not be necessary if the words in brackets in paragraph 1 are
deleted.
2. The United Kingdom Delegation suggest that in line 12
after "the Member taking such action" the following should be
inserted "or, in the case of a Member at whose request action
has been taken by another Member in connexion with a preference,
the trade of the Member making that request". (W.163).
3. The United states Delegation suggest the deletion of
the words "substantially equivalent" in lines 12 and 13 and
the deletion of the last sentence (W.165).
The United states Dalegation makes the following comment:
"The proposed amendment would leave to the Organization
the decision as to what compensatory action would be
appropriate in the circumstances without envisaging,
as does the present draft, that the privileges of the
Article will be abused".
Article 35 - Consultation - Nullification or Impairment
1. The French Delegation propose that the title should be
altered to read "Procedure for Consultation" (W.168).
2. The Cuban Delegation propose that this Article should
be deleted and submit the following suggestions (W.172). E/PC/T/W/175
Page 4
"The existing formulation of paragraph I deals ex-
clusively with the questions of Chapter V, but it
seams undesirable to limit the possibility of an
amicable settlement of misunderstandings or disputes
to this Chapter. The new Article 85 A proposed
below would extend this procedure to the whole
Charter."
" Article 85A.
Add a now Article 85 A reading as follows:
"Paragraph 1.
Each Member shall accord sympathetic consideration
to, and shall afford adequate opportunity for con-
sultation regarding such representations as may be
made by any other Member with respect to matters
affecting the operation of the Charter, 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".
"Paragraph 2.
The same wording as the present Article 35, para-
graph 2, substituting in the third sentence of this
paragraph the word "Chapter" by the word "Charter".
"Article 86.
a) In paragraph 2, line 3, substitute the word
"shall" by the word "may".
b) Add, as a last sentence, to paragraph 2, the
following: "The application of the procedure
in Article 85 A does not exclude the initiation
of the procedure set forth in this paragraph,
as far as it is applicable to the case, provided
the first mentioned procedure has been terminatedd".
"Article 86 A
Add, as a new Article 86 A, paragraphs 3 and 4 of
the present Article 86.
Comment to Nos, 3 and 4 - These proposals . are
designed to regroup the Iemedise preated by the Charter
for settling, either amicably or, by a legal procedure,
questions or dispures asrising out of the wording or
the application of the Charter, or which may develop
by actions directed against the purposes of the Charter
or situations having the effect of nullifying or im-
pairing its objects.
The amendment is intended, furthermore, to avoid
a multiplication of the procedures provided for". E/PC/T/W/175
Page 5
Paragraph 1 .
1. The delegate reserving his position 'temporarily regarding
the words "anti-dumping and countorvailing duties" inserted by
the Dratting Committee (of. D.C. Report, page 30), represented
Brazil.
2. The delegate supporting the suggestion (made by several
other delegatos) to insert tho words "without projudicing the
legitimate business interests of particular private or state
enterprises" represented Czechoslovakia.
3. The delegate supporting the remarks made by the delegate
for Czehoslovakia and declaring that if the words mentioned were
not included, he would profer restoration of the London text,
represented Frence.
Paragraph 2.
1. The French Delegation propose that this paragraph should
be deleted and should be replaced by a now Article in Chapter
VIII, the text of which will be proposed in due course (W/168).
2. The Australian Delegation propose the following to replace
the present draft (W/170).
"2(a) If any Member should consider that any other
Member is applying any measure, whether or not it
confliots 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 sympathetio consideration
to such written representations or proposals as may be
made with a view to effecting a setisfactary adjustment
of the matter.]
any benefit accorded to it directly or indirectly by this
Charter is being nullffied or impaired, or that the pro-
motion by it of any of the Purposes of this Charter is
being impeded, as the result of -
(i) the application by another Member of any
measure, whether or not it confliots with
the provisions of this Charter: or
(ii) the failure of another Member to carry out its
obligations under this Charter: or
(iii) the existence of any other situation.
the Member may, with a view to the satisfactory adjustment of
the matter, make written represantations or proposals to the
other Member Members which it considers to be concerned.
Any Member thus approached shall give sympathetic consider-
ation to the representations or proposals made to it.
"[If no such adjustment can be effected, the matter may be
referred to the Organisation, which shall, after
investigation, and if necessary after consultation with
the Economic and Social Council of the United Nations
and any appropriate inter-governmental organisations,
make appropriate recommondations to the Members concerned*] E/PC/T/.W/175
page 6
"If no satisfactory adjustment is effected between the
Members concerned within a reasonable time, or if the
difficulty as of the type described in ( iii) of this sub-
paragraph, the matter may be referred to the Organisation.
"(b) The Organisation shall promptly invstigate any matter
so referred to it, and after consultation it necessary with
Members, with the Economic and Social Council of the United
Nations and with any appropriate inter-governmental organis-
ations, shall make appropriate recommendations ta the Members
concerned.
"[The Organisation, if it considers the case]
"(o) If the Organisation considers that the circumstances are
serious enough to justify such action, it may authorise a
Member or Mambers to suspend the application to [any] such
other Member or Members of such specified] obligation or
concessions under this Chapter as the Organisation determines
to be [many be] appropriate in the circumstances.
"If the application to any Mamber of any [if such]
obligation s or concession s is are in fact suspended that
[any affected] Member shall then be free, not later than
sixty days after such action is taken to advise the Director-
General in writing of its intention to withdraw from the
Organisation 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 [Organisation]
Director-Genoral. "
The Australian Delegation state the main purposes sought in this
re-drafting are:-
"(1) to replace the phrase "nullifying or impairing any
object of this Charter" by words that more clearly
express the intention and are less aubiguous, it
being felt that reliance upon the phrase "object of
this Charter", as at present, leaves too much to
inference;
" (2) to set out more clearly the ciroumstances in which
a Member may make a complaint and seek to be
released from obligations undertaken or concessions
granted by it;
"(3) to provide for the fact that in some cases a complain-
ing Member's difficulties Might not be due to any act
or failure of another Member to when complaint could
appropriately be made, while retaining the provision
that when anothor Member is clearly involved, consult-
ation and conciliation between the Members should be
attempted before the matter is referred to the
Organisation;
"(4) to ensure that the drafting of the Article covers
the types of cases dessribed in paragraphs 4(b) and
4(o) on page 11, and 3(1) on page 15 of the London
Report; E/PC/T/W/175 page 7
"(5) to retain the idea that it is the Organisation
which determines, in the circumstances, the obli-
gations from which one or more Members may be
released, and which Members should be relcased;
"(6) to clarify the procedure under which a Member may
withdraw from the Organisation in the circum-
stances set out in this Article, and to use
similar language to Article 89."
3. The United Kingdom Delegation propose that this paragraph
should be transferred to article 86 and have suggested the follow-
ing combined redraft of Articles 35:2.and 86 (W.161)
"1. Nothing in this Article shall be construed to limit
or exclude other procedures established in this Charter
for consultation over and settlement of complainnts or
difficulties a rising out of its operation.
"2. If any Member considers that another Member has
adopted any measure, whether or not it constitutes a breach
of an obligation under this Charter, or that any situation
has arisen, which has the effect of nullifying or impair-
ing any object of this Charter, it may invite the Members
concerned to consult thereon and they shall endeavour to
reach a satisfactory settlement.
"3. If no such settlement can be reached, the matter may
be referred by an interested Member to the Executive Board,
which shall give a ruling thereon.
"4. Any ruling of the Exacutive Board shall be reviewed by
the Conference at the request of any interested Member.
Upon such request the Confrence shall by resolution of the
majority confirm or amend or reverse the ruling, provided
that
(i) it may, as appropriate, consult with the Economic
and Social Counoil of the United Nations and with any
other interested inter-governmental. organisations; and
(ii) if the matter involves a dispute as to the inter-
pretation of the Charter, it shall at the instance of
not less than one-third of the Members request from
the International Court of Justice an advisory opinion
thereon and any proceedings for the review by the
Conferance of such a ruline of the Board shall there-
upon be stayed until the opinion of the Court is
delivered, and the conferense, when it finally reviews
such ruling shall adopt and be bound by the advisory
opinion delivered by the Court, The Conterence after
reviewing the ruling may make such further recommend-
ations to the Members concerned as it thinks fit. E/PC/T/W/175
Pase 8
"5. If it considers, in any case brought before it
in pursuance of this Article, that a breach of oblig-
ations under this Charter or that nullification or
impairment of any object of this Charter has taken
place of a character serious enough to justify such
action, the Conference may authorise any Member or
Members to suspend the application to any other
Member or Members of such obligations or concessions
under the Charter as it may specify. If such oblig-
ations or concessions are, in fact, suspended, any
affected Member shall then be free to give notice of
withdawal from the Organisation. Such notice must
be given to the Organisation in writing and within.
60 days after such action is taken and the Member's
withdrawal shall be come effective 60 days after the
receipt by the Organisation of the said notice.
"6. The Executive Board and the Conference shall
respectively make rules of procedure for giving effect
to this Article."
4. Secretariat note: If this paragraph is retained, it might
be appropriate to replace in the first line the wards "should
consider" by "considers"; also, the expression "any object of
this Charter" in line 6 might read "any purpose of this Charter"
to oonform with Article 1 and paragraph (d) of Article 61. E/PC/T/W/175
Page 9
SECTIOIN G - RELATIONS WITH NON-MEMBERS
Article 36 - Contractual Relations with Non-Members.
Treatment of the Trade of Non-Members.
1. Note (a) to Article 46, on page 38 of the D.C. Report,
suggests that when Article 36 is dealt with, the provisions of
Chapter VII, whish would allow non-Members to participate in
commodity arrangements, will need to be taken into consideration.
2. The Text of this Article as given in the United States
Draft Charter was left for consideration at a later stage
(of. D.C. Report, page 30). The United States Delegation has
now provided a new draft as follows (W.165).
NOTE: The additions and deletions are based upon the
text of this Article in the U.S. draft charter,
as adopted as a basis of discussion in the first
meeting of the Preparatory Committee and as
reproduced on page 31 of the Report of the
Drafting Committee.
"1. No Member shall seck [exclusive or] preferential
advantages [for its trade] in the territory of
any non-Member [which would] so as to result,
directly or indirectIy, in [diseriaination in that
territory against the trade of any other Member]
the application by such non-Member to any Member
of measures which, if applied by a Member, would
be inconsistent with the provisions of this
"2. No Member shall be a party to any agreement or
other arrangement with any non-Member under which
such non-Member [shall] would be contractually
entitled to any the benefits [of] provided to
Members by virtue of [this Charter] Chapter V. (2)
"3. [with regard to countries which, although eligible
for Membership have not become Members or have
withdrawn from the Organizaion]. No Member shall,
except with the concurrcnce of the Organization,
apply to the trade of [such countries] any other
country which, altough eligiple for membership,
has not become a Member or has withdrawn from the
Organization, the tariff reductions effected by
such Member pursuant to ArticIe 24. (3) [This
paragraph shall become effective upon theexpiration
of one year from the date on which the Organization
is established: Provided, That this period may be
extended by the Organizaion for further periods
not to exceed six months each] (4)
"4. The provisions of paragraphs and 3 of this
Article shall become effective upon the expiration
of one year from the day on which this Charter
enters into force: Provided, That this period may
be exttended by the Organization, in respect of the
relations of any Member with any non-Member, for
such further periods as the Organization may
prescribe. At any time before the expiration E/PC/T/W/175
page 10
of any such period, a Member may request the
organization in writing for such an estension,
in which evant the period will be considered
to be extended until a reply is received from
the Organization. If the Organization dis-
approves the extension requesed, the Member
shall then be free, not later than sixty days
from the day on which notice of such disaporeval
is received by the Member, to withdraw from the
Organization effective upon the expination of
sixty days from the date on which written notice
olf such withdrawal is received byy the Organiza-
tion(5)
"45. Members [underttake to review ] shall terminate
et the earliest possible dae any international
obligations they may have with non-Members which
would prevent them from giving full effect to
[paragraphis 1 and 2 of this Article] the
provisions of this Charter, [and, if necessary
for that purpose, to terminate such obligations]
either by agreement or in accordance with their
terms. (6)"
The United States proposals are supparted by the
following commentay:
" (l) Under the present draft this obligation might
have been interpreted to refer to ordinary
commercial contracts or other matters not
subject to the provisions of the Charter. The
propsed change should make the original purpose
clear.
"(2) The proposed change limits the applications of
this provision to the principal commercial
benefits which are granted by Members to other
Members by virtue of the Charter. The broader
wording of the carlier draft was subject to the
objection that it would require the renegotiation
or renunciation of agreements with non-Members
even though such agreements could not be
consideed harmful to interests of other
Members.
"(3) This change is made in the interest of botter
drafting and does not affect the substance of
the earlier draft .
"(4) The deleted sentence has been moved to the new
paragraph 4.
"(5) The purpose of this change is:
a. To provide a mechanism for the extension
of the period before which the provisions
of paragraphs 2 and 3 come into force,
and
b. to enable Members to appraise the effects E/PC/T/W/175
page 11
od the application of paragraphs 2 and
3 in the light of the known membership
of the Oranization and to withdraw from
membership if the disadvantages to them
arisinig from the application of this
Article would outweigh the advantages of
membership.
"(6) The effect of the changes proposed in this
paragraph is to omit from an Article relating
to non-Members any reference to the revision of
obligations between Mambers, to extend the
termination of obligations with non-Members to
include any obligation conflicting with the
Charter, and to avoid unnecessary deiays in
carrying out the provisions of the paragraph."
3. The Czachoslovak Delegation proposes the following text
(W.171):
"(1) No Member shall seek exclusive or preferential
advntages for its trade in the territory of
any non-Member
(2) No Member shall be a party to any agreement or
other arrangement wih any non-Members which
would be contrary to the general purposes of
the Charter.
(3) Each Member undertakes to take appropriate
measures in accordance with its laws and economic
and social organization to prevent transactions
with non-Member or with persons on their terri-
tories which would be contrary to the general
purposes of the Charter.
(4) Any Member shall be entitled to suspend the
application of some provisions of this Charter
if a substantial proportion of its foreign
trade, is conducted with non-Members and if the
execution of some provisions of the Charter
would seriously prujudice its economic interests,
provided that such action shall not be
contradictory to the general purposes of the
Charter.
Any Member wha has taken such action shall afford
the Organization and substantially interested
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 safe
guard its interests without prejudicing the
general purposes of this Charter and the
legitimate intercsts of the above mentioned
Members. E/PC/T/W/175
Page 12
If no adjustment can be effected the Member
concerned may withdraw from the Organization at
any time by written notice addressed to the
Director General either on its own behalf or on
behalf of the territory which is at the time self-
governing in respect of matters provided for by
this Charter, giving reason therefore. This
withdrawal shall become effective on the date such
notice is received. The Director General shall
immediately notify all other Members."
The Czcchoslovik Delegation makes the following comment
on its proposal:
"At its first Session the Preparatory Committee
did not discuss Article 36 and no views were expressed
as to its text. The Czechoslovak Delegation was from
the very beinning greatly concerned about the consequences
of the original draft text, because, if Article 36 would
have been left standing in its original form, this might
have led to serious economic conflicts, detrimental to
all concerned and hence contrary to the purposes of the
Charter. Such a possibility of future conflicts would
have probably prevented many countries from joining the
I.T.O.
The principles expressed in the suggested Amendment
are analogous to the principles which underlie the
relations of Members to non-Members in the Articles of
Agreement of the International Monetary Fund / Article
XI, XIV, Soction 1/.
The expression "preferenial advantages" used in
paragraph 1 of the proposed Article 36 is understood
in the sense of "tariff preferences" and should not be
interpreted in the sense of preventing Members from
obtaining normal tariff reductions in a non-Member
country, if this country for some reason has no
commercial treaty with one or more Member countries." E/PC/T/W/175
Page 13
SECTION I - TERRITORIAL APPLICATION
Article 38 - Territorial Application of Chapter V -
Frontier Traffic - Customs Unions
Paragraph 1
1. The International Monetary Fund may contribute to the
discussion on the implication of this paragraph on Articles 26,
28 and 29 (of. D.C. Rcport, page 32).
2. The United Stetas Delegaion propose that the
word "interpreting" in line 7 be replaced by "the torritorial
application", in order that possible ambigulty inn the former
wording be removed (W. l65 ) .
Paragraph 2 (b)
1. The amendment in respect of the initial transitional
stage of the formation of Customs Union (of. D.C. Report,
page 32) was proposed by the delegate for Chile, supported by
the delegate for Lebanon. The Delegation of Chile has now
proposed (W.173) that the following text should be inserted
after "The formation of a Customs Union":
"and its initial transitional stage, which begins with
the entry into force of agreement establishing the
effective commencement of a Customs Union and character-
ised by a total elimination of customs duties on certain
products originating in the contrscting countries".
2. The United Kingdom Delegation poposes that the
provise beginning in the second line should be numbered " (1)",
and that the following second provise should be added (W.163):
"(2) where the countries which enter into the Union
are tarriteries which grant preferences as provided for
In Article 14 (2), the references granted by the Union
to other territories which proviausly enjoyed preferences
in any of the consitituent territories of the Union shall
not on the whele be higher than the average level of the
preferences previously so granted."
The delegate suggesting that provision should be made for
the continuation of his country's special arrangements with
certain neighbouring islands (of D.C. Report, page 32)
represented Australia.
1. The two delegates who maintainse their reservations
in respect of reginal preferances reporesented Brazil and
Labonon. The delegates objecting to the application of
paragraph 3 of Article 66 (of. D.C. Report, 32)
represented Chile and Lebanon. E/PC/T/W/175
page 14
2. Attention is drawn to the new pararaph to Article 14
prepesed by the delegates for Chile and Lebanon (of. E/PC/T/W.27).
The Preparatory Committee decided that this matter should not
be considered in conjunction with Article 14. Refarence should
be made to the Chilean proposal referred to under paragraph 2(b)
above.
3. It may be considered whethes this paragraph (which is
not concerned with to ritorial application) should not be placed
elsewhere in the Charter.
4. The Franch Delegationn makes the following comment
(W. 169) :
"The French Delegation had intsnded to submit an amendment
to Atrticle 38, paragraph 4. However, as the Sub-Committee
exanining Article 13 of the Draft Charter is at present
considering proposals which, accepted, would alter the
scope of Article 14 and of Article 38, paragraph 4, the
French Delegation prefers to await the results of these
discussions before metting any cefinite proposels. In
these circumstances, the French Delegation can only
reserve the right to submit its obserbations when Article 38
comes up for diiscussion.
Paragraph 5
No observation. |
GATT Library | yy075ph3002 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Chapter V - Article 30. Àmendlment proposed by the Australian Delegation | United Nations Economic and Social Council, June 20, 1947 | United Nations. Economic and Social Council | 20/06/1947 | official documents | E/PC/T/W/l88 Rev.1 and E/PC/T/W/177-207 | https://exhibits.stanford.edu/gatt/catalog/yy075ph3002 | yy075ph3002_90050332.xml | GATT_152 | 220 | 1,468 | UNITED NATIONS NATIONS UNIES RESTRICTED
ECONOMIC CONSEIL E/PC/T/W/l88 Rev,
AND ECONOMIQU E ORIGINAL: ENGLISH
SOCIAL COUNCIL ET SOCIAL
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
CHAPTER V - ARTICLE 30
ÀMENDLMENT PROPOSED BY THE AUSTRALIAN DELEGATION.
PARAGRAPH 3.
A system for the stabilization of the domestic price or
of [eturns] the return 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 shall
[may] be considered [determined] not to involve a subsidy on
exportation under the terms of paragraph 2 of this Article, if
it is determined that provision is made for the maintenance
at fixed levels of prices for domestic consumption irrespective
of the movement of export prices and [it] because of such
provision the system has [also] resulted or may result, 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 that [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. |
GATT Library | jj060xn5046 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Chapter V - Article 30. Amendment proposed by the Austalian Delegation | United Nations Economic and Social Council, June 12, 1947 | United Nations. Economic and Social Council | 12/06/1947 | official documents | E/PC/T/W/188 and E/PC/T/W/177-207 | https://exhibits.stanford.edu/gatt/catalog/jj060xn5046 | jj060xn5046_90050331.xml | GATT_152 | 306 | 2,054 | UNITED NATIONS NATIONS UNIES RESTRICTED
E/PC/T/W/188
ECONOMIC CONSEIL 12 June 1947
AND ECONOMIQUE ORIGINAL:ENGLISH
SOCIAL COUNCIL ET SOCIAL
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT.
CHAPTER V - ARTICLE 30.
AMENDMENT PROPOSED BY THE AUSTALIAN DELEGATION
PARAGRAPH 3.
A system for the stabilization of the domestic price or
of [returns] the return 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] shall
[may] be determined not to involve a subsidy on exportation
under the terms of paragraph 2 of this Article, if provision is
made for the maintenance at fixed levels of prices for domestic
consumption irrespective of the movement of export prices and
[it] because of such provision the system has [also] resulted
or may result, 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 sooperated,
either because of the effective limitation of production, or
because the export price is held below current corrable
representative export prices, or otherwise, as not to stimulate
exports unduly or otherwise seriously prejudice the interest of
other members.
COMMENT.
This amendment is designed to clarify the requirements
which domestic price stabilization schemes must satisfy before
they may be removed from the application of Paragraph 2. It is
felt that the present text does not quite convey the intentions
of the First Session of the Preparatory Committee; in particular,
that it does not cover new arrangements, where movements in
prices have perhaps not had time to meet the condition that
export prices have actually been higher than domestic prices. |
GATT Library | gj403yz7806 | Second Session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Chapter V. Articles 34, 35 and 38. Report by the Sub-Committee for submission to Commission A on Monday, 4th August, 1947 | United Nations Economic and Social Council, July 31, 1947 | United Nations. Economic and Social Council | 31/07/1947 | official documents | E/PC/T/W/146 and E/PC/T/142-152 | https://exhibits.stanford.edu/gatt/catalog/gj403yz7806 | gj403yz7806_92290181.xml | GATT_152 | 1,719 | 11,053 | NATIONS UNIES
RESTRICTED
ECONOMIC CONSEIL E/PC/T/W/258
AND ECONOMIQUE ORIGINAL
SOCIAL COUNCIL ET SOCIAL
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFEREMCE ON TRADE AND EMPLOYMENT.
CHAPTER V
Articles 34, 35 and 38
Report by the Sub-Committee for submission
to Commission A
on Monday, 4th August, 1947.
Articles 34, 35 and 38, dealing respectively with Emergency
Action on Imports of Particular Produots, with Consultation and
Nullification or Impairment, and with Territorial Application and
Customs Unions, were discussed by Commission A on 11th, 12th and
13th June, and were referred to the Sub-Committee on articles 14,
15 and 24. In order to facilitate the study of these three
Article a series of meetings was arranged under the Chairmanship of
the Delegate for the United States, Mr. Winthrop G. Brown, The
other members of the Committee were the Representatives of the
Australian, Belgian, Chinese, Cuban, Norwegian and United Kingdom
Delegations. Four meetings were held from 18th-22nd July and were
attended by several delegates not members of the Sub-Committee,
The Sub-Committee reviewed all the proposals put forward, during
the debates in Commission A, as recorded in E/PC/T/W/224, and many
of them were withdrawn by the Delegations which had sponsored them,
The important amendments of substance, recommended by the Sub-Committee,
may be described briefly as follows:
In Article 34 the second paragraph has been amended so as to
restrict provisional emergency action without prior consultation to
critical circumstances such that a delay would cause damage which it
would be difficult to repair,
In the third paragraph a corresponding amendment has been
Introduced to allow a Member, whose producers of the products
affected by such action are caused or threatened with serious injury
such that delay would cause damage which it would be difficult to
repair, to suspend throughout the duration of the ensuing consultation
such obligations or concessions as may be necessary to prevent or
remedy the injury,
The second amendment of substance in Article 34 is the
alteration of the period of 60 days to 90 days as the time allowed
for Members affected by the emergency action of another Member to
suspend substantially equivalent obligations or concessions.
In Article 35 the first paragraph has bean retained without
altercation, except for the deletion of the lest phrase calling upon
a Member to provide information when representations are made by
another Member with respect to the operation of customs regulations,
etc. It was decided to delete this requirement rather than to add E/PC/T/W/258
page 2
a qualification that the submission of such information is not to
prejudice the legitimate business interests or private or state
enterprises; it was thought that the requirements of "sympathetic
consideration" and." adequate opportunity for consultation" would be
sufficient to ensure amicable settlement of disputes.
In dealing with paragraph 2 the Sub-Committee took into
account the views expressed in Commission A is favour of the
transfer of this paragraph to a later part of the Charter. The
Sub-Committee were unanimously in favour of such transfer and
prepared a revised text, based on th; draft of the Australian
Delegation, for incorporation in Chapter VIII.
Paragraph 1 of Article 38 was re-written in order to clarify
the meaning of customs territories in respect of the application of
the Charter.
Finally, sub-paragrahph (b) of paragraph 2 was revised, and
a new sub-paragraph was .dded to paragraph 3, in order to provide
for interim agreements between Members leading to the attainment
of customs unions; such interim agreements must include a definite
plan and schedule for the attainment of a customs union within
a reasonable length of time, and the plan and schedule proposed may
bo disapproved by the Organization if it determines that they are
not likely to result in a customs union within a reasonable period
of time.
The text recommended by the Sub-Committee follows:.
Article 34.
Emergency action on imports of particular products
1. If, as a result if 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
threraten 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 of a Member which receive or
received such preference at the request of such Member's government,
the Member shall be free, in respect of such product, and to the
extent and for such time as may be necessary to prevent or remedy
such injury, to suspend the obligation in whole or in part or to
withdraw or modify the concession.
2, Before any Member shall take action pursuant to the provisions
of paragraph 1 of this Article, it shall give notice in writing to
the Organization as far in advance as may be practicable and shall
afford the Organization and those Members having a substantial
interest as exporters of the product concerned, an opportunity to
consult with it in respect of the proposed action. When such
notice is given in relation to a concession with respect to
a preference the notice shall state the Member government which has
requested the action. In critical circumstances, suoh that the
delay would cause damage which it would be difficult to repair, such
action may be taken provisionally without prior consultation,
Provided that consultation shall be effected immediately following
upon the .taking of such action. page 3
3. If agreement among the interested Members with respect to
the action is not reached, the Member which proposes to take or
continue the action shall, nevertheless, be free to do so, and
if such action is taken or continued , the affected Members shall
then be free, not later than ninety days after such action is
taken, to suspend, upon the expiration of thirty days 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 of a Member at whose request action
has been taken by any Member in connection with a preference, the
trade of that Member, of such substantially equivalent obligations
or concessions under this Chapter the suspension of which the
Organization does not disapprove. In the event of action being
taken provisionally without prior consultation in accordance with
the provisions of paragraph 2, a Member whose domestic producers
of products affffected by the action are caused or threatened with
serious injury such that delay would cause damage which it .would be
difficult to repair small be free _ ,f throughout the
duration of the consultation, such obligations or concessions as
may be necessary to prevent or remedy the injury,
A'rticle 35
Consultation i O
7echeMcmhall s)). d coympathetic consideration to,
and shall afford adequate opportunity for consultation regarding,
such representations as may be made by any other Member with
respect to the operations 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 life
or health, and generally matters affecting the opearatontion of
thia Chrpter.
ire 3l' '8
Teorial iaal applicatio off Chapter V -
tier iejr traffic - oustlms unions
1. The rigand obligations .arising uind unJer thia Chepter shall
be deemed to be in force eetwaach c.n and every territory which is
aasep-rate customs territary nnd in eesp;ct of which thia ChRrter
hae beun accepted by a er bon ith accra pargr4rph of
Lticle 88,
2. Tpe Drovisions of Cher r V'all ;1l not bue constructed Ao te
pe-v nt:
(aA idvages.as cccordey may :ember b r adjacent countries es
io Oer tto£ facilitate frontier traffic ; orr
(b) hec formrtion ofa .custuoms unin i or he adoptio n of an
interm agee en . eceissary forthe attainment t of a customs
union,Prrovided hat t tec dutiesaind otear eculations of commerce
imposed by or any margins of reference mainainted by any such
union or a ag:rement t i r especctof tadec withmrmbes "of the
Organizatino s hall not on the whole he higher or rmore stringent
than thieavervage oeoe of thceduti e and rQeulatîins Oo commerce E/PC/T/W/258
page 4
(b) (Contd.)
or margins of preference applicable in the constituent
territories prior to the formation of such union or 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 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
the Organization to make such reports and recommendations to
Members as it may deem appropriate.
(b) No Member shall initiate or maintain any interim agreement
under the provisions of paragraph 2(b) 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 , nor shall .
the plan or scheduled be substantially altered without
consultation with the Organization.
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 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 s not included in the union. |
GATT Library | hc234vc8377 | Second Session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Chapter V. Articles 34, 35 and 38. Report by the Sub-Committee for submission to Commission A on Monday, 4th August, 1947 | United Nations Economic and Social Council, July 31, 1947 | United Nations. Economic and Social Council | 31/07/1947 | official documents | E/PC/T/W/146 and E/PC/T/142-152 | https://exhibits.stanford.edu/gatt/catalog/hc234vc8377 | hc234vc8377_92290181.xml | GATT_152 | 0 | 0 | |
GATT Library | rq867np9636 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Chapter V. Articles 34, 35 and 38. Report by the Sub-Committee for submission to Commission A on Monday, 4th August, 1947 | United Nations Economic and Social Council, August 4, 1947 | United Nations. Economic and Social Council | 04/08/1947 | official documents | E/PC/T/W/236-260 and E/PC/T/W/236-260 | https://exhibits.stanford.edu/gatt/catalog/rq867np9636 | rq867np9636_90050409.xml | GATT_152 | 114 | 751 | UNITED NATIONS RESTRICTED
ECONOMIC
AND
SOCIAL COUNCIL
NATIONS UNIES
CONSEIL
ECONOMIQU E
ET SOCIAL
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT.
-CHAPTER V
Articles 34, 35 and 38
Report by the Sub-Committee for submission
to Commission A
on Monday, 4th August, 1947.
The symbol of this document should be E/PC/T/146
instead of E/PC/T/W/258.
DEUXIEME SESSION DE LA COMMISSION PREPARATOIRE
DE LA CONFERENCE DU COMMERCE ET DE L'EMPLOI
DE L'ORGANISATION DES NATIONS UNIES
CHAPITRE V
Articles 34, 35 et 38
Rapport présenté par le Sous-comité
à. la Commission A
le lundi 4 août 1947
Co document devrait porter la cote E/PC/T/146
au lieu de E/PC/T/W/258.
M.319/47
ESTRICTED |
GATT Library | ty729rg7640 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Chapter V - General commercial policy | United Nations Economic and Social Council, May 13, 1947 | United Nations. Economic and Social Council | 13/05/1947 | official documents | E/PC/T/W.24/Add.1 and E/PC/T/W/23-81 | https://exhibits.stanford.edu/gatt/catalog/ty729rg7640 | ty729rg7640_90050150.xml | GATT_152 | 258 | 1,761 | E/PC/T/W.24/Add.1
ECONOMIC CONSEIL 13 May 1947
AND ECONOMIQUE ORIGINAL: ENGLISH
SOCIAL COUNCIL ET SOCIAL
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
CHAPTER V - GENERAL COMMERCIAL POLICY
Addition by the Delegation for the United
States to the amendment of Article 21,
paragraph 2 proposed by the Delegation
for Canada in document E/PC/T/W.24
The following sentence should be added to the end of the
amendment proposed by the Delegation for Canada to paragraph 2
of Article 21 in document E/PC/T/W.24:
"Provided, that such agency may take any steps necessary
to obtain a review of the matter in another proceeding
in cases in which there is good cause to believe that
the decision is inconsistent with established principles
of law or the actual facts."
DEUXIEME SESSION DE LA COMMISSION PREPARATOIRE
DE LA CONFERENCE DU COMMERCE ET DE L'EMPLOI
DE L'ORGANISATION DES NATIONS UNIES
CHAPITRE V. - POLITIQUE COMMERCIALE GENERALE
Addition que la Délégation des Etats-Unis propose d'apporter
à l'amendement à l'article 21, paragraphe 2, présenté par la
Délégation du Canada, dans le document E/PC/T/W.24.
Ajouter la phase suivante à la fin de l'amendement, au
paragraphe 2 de l'article 21 propose par la Délégation canadienne,
dans le document E/PC/T/W.24:
"Sous réserve qu'un tel organisme puisse prendre toutes
mesures nécessaires pour obtenir une révision de l'affaire
dans une autre instance, dans les cas où il y a vraiment
lieu de croire que la decision est incompatible avec les
principes fixes par la loi ou avec la réalité des faits."
UNITED NATIONS
NATIONS UNIES
RESTRICTED |
GATT Library | yk590ff2506 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Chapter V - Section C. (Quantitative restrictions and exchange controls). Articles 25 - 29 incl. Annotated Agenda | United Nations Economic and Social Council, June 2, 1947 | United Nations. Economic and Social Council | 02/06/1947 | official documents | E/PC/T/W/223 and E/PC/T/W/220-235 | https://exhibits.stanford.edu/gatt/catalog/yk590ff2506 | yk590ff2506_90050371.xml | GATT_152 | 9,080 | 60,323 | UNITED NATIONS NATIONS UNIES
RESTRICTED
ECONOMIC CONSEIL E/PC/T/W/223
AND ECONOMIQUE 2 June 1947
SOCIAL COUNCIL ET SOCIAL ORIGINAL : ENGLISH
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT.
CHAPTER V - SECTION C
QUANTITATIVE RESTRICTIONS AND EXCHANGE CONTROLS)
Articles 25 - 29 Incl.
ANNOTATED AGENDA
Introduction
1. This agenda, prepared by the Secretariat, supersedes
the relevant parts of document E/PC/T/W.64 and should be read
in conjunction with the report of the Drafting Committee,
(E/PC/T/34) which is hereafter referred to as "D.C.Report",
2. It incorporates the reservations and comment made by
delegations and recorded in the D.C. Report and all amend-
ments, presented by delegations up to 1800 hours on Saturday,
21st June 1947 together with comments submitted by the
Secretariat. Underlining indicates additions to, square
brackets deletions from the text of the D.C. Report.
3. The following papers containing the proposals and com-
ments submitted by delegations which are incoroorated in
this agenda have already been circulated as working
documents:- E/PC/T/W/223.
Page 2.
Chinese Delegation E/PC/T/W.73, 74 and 75
Indian Delegation E/PC/T/W.136
Cuban Delegation E/PC/T/W.194
Norwegian Delegetion E/PC/T/W.196
Netherlands Delega-
tion E/PC/T/W.199
United States Dele-
gation E/PC/T/W.208 and 216
Belgium-Luxemburg
Delegation E/PC/T/W.209
United Kingdom Dele-
gation E/PC/T/W.212
French Delegation. E/PC/T/W.213
Australian Delegation E/PC/T/W.214, 215 and 218
Czechoslovak Dele-
gation E/PC/T/W.217 and 219
SECTION C. QUANTITATIVE RESTRICTION AND
EXCHANGE CONTROL
Note 1. Study by the International Monetary Fund and
the International Bank for Reconstruction and
Development.
The following passage is quoted from the Report
of the First Session (page 14):
"It is generally felt that it would be of
great assistance to the work of the Pre-
Paratory Committee if the Fund and the Bank
could be invited to study Articles 26, 28
and 29 with a view to putting their con-
sidered opinion on these issues before the
Second Session of the Preparatory Committee. "
In accordance with this suggestion, the Fund and
the Bank were invited to makes such a study to be con-
sidered at the Second Session.
Note 2. Study suggested by the Economic and Employment
Commission.
At the 24th meeting of the Drafting Committee (on
February 27, 1947), attention was paid to the Report of
the Economic and Employment Commission (E 255), par-
ticularly with reference to a suggested examination of
the multilateral aspects of world trade and the help
this examination might afford in applying Articles 26,
27 and 28. (of. E.255, p. 19). The Chairman
suggested that all members of the Drafting
Committee should keep in touch with their Govern-
ments regarding the continued work of the Economic
and Employment Commission and its sub-committees
and instructed the Secretary to follow these
developments and to report to the Second Session
in Geneva on the developments in this respect".
(E/PC/T/C/90, page 3). E/PC/T/W/223
Page 3.
Article 25.- General elimination of quantitative
Restrictions
Note 3. The Secretariat has received the following communi-
cation from the Delegation of New Zealand:
In view of the relationship of Article 25 to other
parts of the Charter which are at present under conside-
ation in Committee, the New Zealand Delegation reserves
the right at a later stage to lodge en amendment to
Article 25.
Paragraph 1
Note 4. The Delegation of the United States of America
submit the following amendment and comment to this
paragraph (E/PC/T/W.206)
1. [Except as otherwise provided in this Charter.]
No prohibitions or restrictions other than duties, taxes
or other charges, whether made effective through quotas,
import licenses or other measures, shall to institutes or
maintained by any Member on the importation of any product
of any other Member country or on the exportation or sale
for export of any product destined for any other Member
country.
COMMENT: The opening phrase of paragraph 1 results
in a double cross-reference between the
general principle laid down in paragraph 1
and the various exceptions stated elsewhere,
each of which contains an appropriate cross-
reference to paragraph 1. Double cross-
reference have been avoided elsewhere in
the Charter.
Paragraph 2
Note 5. The Australian Delegation submit the following amend
25; 2 (b)
ment and comment to sub-paragraph (b) (cf. E/PC/T/W.218):
25. 2. (b) "Export prohibitions or restrictions
temporarily applied to prevent or relieve critical shot-
ages of foodstuffs or other essential products in the
exporting Member country." E/PC/T/W/223
page 4.
It is felt that the wording of this sub-paragraph
should make it clear that a Member may take action
when a critical shortage is clearly about to arise
unless remedial action is taken rather than wait
until it has actually arisen.
Note 6 The Delegations of the United States of America and
25: 2(d)
of the United Kingdom propose the deletion of sub-
paragraph (d) and its transfer to Article 37, (cf.
E/PC/T/W.208 and E/PC/T/W.212). The Delegation of the
United States of America offers the following.
COMMENT:
Sub-paragraph (d) should be replaced by the insertion
in Article 37 of an appropriate provision excepting
from all of Chapter V measures undertaken in
pursuance of obligations under regulatory commodity
arrangements concluded in accordance with Chapter
VII (See page 5 of U.S. working paper 7009, 12
June 1947, submitted to the Sub -committee on
Chapter VII.)
The Delegation of the United Kingdom, referring to
S/PC/T/W.137 and the remarks of the United Kingdom Delegate
at the 5th Meeting of Commission B (E/PC/T/B/PV 5, p.44
and 45) suggest insertion of this provision in Article 37
after item (g) in the following form:
"undertaken in pursuance of obligation' under inter-
governmental commodity arrangement amended in accord-
ance with the provisions of Chapter VII"
Secretariat Comment:
1) The relevant remarks in E/PC/T/W.137 (obser-
vations and proposals by the United Kingdom Delegation to
Chapter VII) are as follows:
Before coming to the text of Chapter VII itself,
it is necessary to point out that the provisions in
Chapter V regarding the subject matter of Chapter VII
are not satisfactory in their present form and it is
suggested that a reference to Chapter VII should be
inserted in Article 37 (the General Exceptions Article)
in the following form:
" (1) undertaken in pursuance of obligations under
inter-governmental commodity arrangements concluded in
accordance with the provisions of Chapter VII". E/PC/T/W/223
page 5.
If this amendment were adopted, clause (d) in Article 25(2)
should be omitted.
2) The relevant remarks in the United States working
paper 7009 are as follows:
"Suggested amendment to Chapter V concerning
Chapter VII, Article 37 - General exceptions
subject to ...., nothing in Chapter V shall be construed
to prevent the adoption or enforcement by any Member of
measures:
(1) Undertaken in pursuance of obligations under regu-
latory inter-governmental commodity arrangements concluded
in accordance with the provisions [of Section C] of Chapter
VII."
Note 7 The Delegation of China propose the following amendment
25.:2( e)
(of. E/PC/T/W.75) to sub-paragraph (e):
The first sentence of this Sub-Paragraph should be amend-
ed is follows: "Import restrictions on any agricultural or
fisheries product imported in any form necessary to the en-
forcement of governmental measures which operate (i) to
regulate the quantities of the like domestic product per-
mitted to be marketed or produced, or stabilise the prices
of such products, or (ii) to remove a temporary surplus
below the current market level."
The lest three sentences of this Sub-Paragraph beginning
with "Moreover, any restrictions applied under (i) above"
and ending with "which wish to initiate such consultations"
should be deleted.
Note 8 The Delegation of the Netherlands support this amendment
25: 2(e)
and propose the following wording (cf. E/PC/T/W.199):
"Import restrictions on any agricultural or fisheries
product imported in any form necessary to the enforcement of
governmental measures which operate (i) to regulate the
quantities of the like or a directly competitive domestic
product permitted to be marketed or produced, or to E/PC/T/W/223
page 6.
stabilise the prices of such products or (ii) to remove
a temporary surplus of the like or a directly competitive
domestic product ...... below the current market level".
COMMENT of the Netherlands Delegation:
If it would not be permissible to extend import re-
strictions supplementary to governmental measures as
provided for in this paragraph to directly competitive
products it is to be feared that such measures in some
cases might easily be frustrated if the import re-
strictions should apply to like products only.
Note 9 The Delegation of Norway propose the following amend-
25:2(e)
ment (of. E/PC/T/W.196)
(e)Import restrictions on any agricultural (or fisheries)
product imported in any form necessary to the enforcement
of governmental measures which operate (i) to regulate the
quantities permitted to be marketed or produced of the
like domestic product or of domestic products wholly or in
part produced by the imported commodity or (ii) 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, 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.
This rule shall not apply to products used in the
production of domestic agricultural products. In
determining ..... E/PC/T/W/223
page 7.
Note 10. The Delegation of the United States of America,
25: 2 (e)
re-numbering this Sub-paragraph as sub-paragraph (d)
in view of the proposed deletion of the present sub-
paragraph (d) , sumit the following amendment and
comment ( cf. E/:PC/T/W.208) .
[(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 pro-
duced, or (ii) to remove a temporary surplus of the
like domestic product by making the surplus available
to certain group of domestic consumers free of charge
or at prices below the current market level. Any
Member [imposing] applying restrictions on the im-
portation 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 pariod 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 pro-
duction, as compared with the proportion which might
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
proportions prevailing during a previous representative
period and to any special factors which may have
affect of may be affecting the trade in the product
concerned. [The Member shall consuit with any other E/PC/T/W/223
page 8.
Members which are interested in the trade in question
and which wish to initiate such consultations.]
The elimination of the consultative provision in
the last sentence of sub-paragraph (a) is proposed
with a view to avoiding duplication of the consul-
tative provision in paragraph 4 of Article 27
dealing with the same subject.
Note 11 The United Kingdom Delegation will wish to raise
25: 2 (e)
2 points of interpretation in regard to this sub-
paragraph (E/PC/T/W.121).
Note 12 1. The countries represented by delegates reserving
25: 2 (e) their position or making sugestions with reference to
paragraph 2 (e), as indicated under the letters (h)-(g)
in the D.C. Report (page 20) are identified below
(b) Belgium-Luxemburg (suggesting addition concerning
seasonal commodities).
(c) Chilo ("This paragraph should not be confined to
agricultural. and fisheries products").
(d) China (reformulation of 25: 2e and reservation on
27:4).
(e) India addition and deletion of certain words).
Note by the Secretariat In line 4 of this comment
the word "Moreover" should be added before "any
restrictions", and in line 5 "2(a) " should be sub-
stituted for "2 (f) ".
(f) Norway ("unable to express an opinion" on reserva-
tion at First Session.)
(g) United Kingdom (insertion referring to "directly
competitive product").
Note 13 The Delegation of the United States of America
25: 2 (f)
proposes the delegation of the present sub-paragraph (f)
with the following comment E/PC/C/T/W.208):
paragraph (f) should be omitted inasmuch as its
substance is already covered by sub-paragraph (g)
of Article 37. In order to make this perfectly
clear, sub-paragraph (g) or Article 37 might be
amended as follows
"(g) Necessary to secure compliance with laws or
regulations which are not inconsistent with the pro-
visions of Chapter V, such as those relating to E/PC/T/W/223
page 9.
the enforcement of state-trading monopolies, customs
[enforcement] regulations, prevention of deceptive
practices, and the protection of patents, trade marks
and copyrights;"
Note 14 The Cuban Delegation propose the insertion of the
25: 2 (f).
following new sub-paragraph (f), renumbering the present
sub-paragraph (f) as sub-paragraph (g) (cf.E/PC/T/W.194):
"(f) Import restrictions on any product in which a
Member considers domestic production essential to the
economic development of its country, either in the
agricultural or in the industrial sphere, in case
the subsidization of this production has proved or is
likely to prove unoperative,. the Member shall eliminate
the restrictions when, after an adequate period which
regularly shall not exceed three years, the conditions
of the agricultural or industrial production to be
developed prove that it is not capable of maintaining
itself without further protection during an unlimited
period of time.
If in the opinion of the Organization the measures
adopted by a Member under this sub-paragraph are
likely to have an extraordinary and-unduly restrictive
effect on international trade, the Organization may
request that the Member consult with other interested
Members with a view towards effecting a satisfactory
adjustment of the matter.
If no such adjustment can be effected the Organiza-
tion shall, after investigation and if necessary
after consultation with the Economic and Social
Council of the United Nations and any competent E/PC/T/W/225 page 10
(f) (contd.)
inter-governmental organization make appropriate
commendations to the Members concerned.
Paragraph 2 of Article 35 shall be applied
correspondingly."
Note 15. The Indian Delegation propose the following new
25: 2 (g)
sub-paragraph (g)
"(g) Prohibition or restriction temperarily applied
to exports to particular countries as a safeguard
against the effects of inflationary conditions
prevailing in those countries."
Of. also amendment to article 28, paragraph 1 (b).
Note 16. The delegation of Syria and Lebanon propose the
25: 2 (g) following new sub-paragraph:-
"(g): Import prohibitions or restrictions imposed for
the purpose of protecting domestic production".
The following reasons for this proposal are
"The provisions of Article 25 appear to be incompatible
with the general purposes of the Charter, and, in
particular, with the provisions of Articles 9 and 13,
which make plain the importance of economic development
and the conditions under which governmental assistance
should be extended to such development
As Syria and Lebanon are among those countries
whose resources are still under-developed, they are
obliged to resort to certain measures of quantitative
restriction in order to protect domestic production or
nowly established industries."
Article 26. - Restrictions to safeguard
the balance of payments
Note 17. The Delegation of Czechoslovakia submit the
following amendment and comment to Article.26 (cf.
E/PC/T/W.217)
Par. 1. The Members may need to use import or export E/PC/T/W/223
page 11.
restrictions as a means of safeguarding their external
financial position and as a step toward the restoration
of equilibrium in thoir balance of payments on a sound
and lasting basis, particularly in view of their increased
demand of imports or exports 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 or exported
insofar as this is necessary to safeguard its balance of
payments and monetary reserves.
Para.2. The use of import or export restrictions under
paragraph 1 of this Article shall be subject to following
requirements: .......
a)...........
b).
c) The Members shall not apply the restrictions in
such a manner as to exclude completely imported or exports
of any class of goods.
(b) The Organization may at any time invite any Member
applying import or export restrictions under ......
(c)..........
(d) Any Member which considers that any other Member is
applying import or expert restrictions under .......
(e) ..........
4. In giving effect to the restrictions on import
or exported under this Article, a Member may restrict
imports or exports of products according to their relative
essentiality in such a way as to give priority to E/PC/T/W/223
page 12.
importation or exportation of products required by its
domestic employment reconstruction, development or social
policies or programmes......
5. If three is persistant and widespread application of
import or expert restrictions undur this Airticle ..........
7. Throughout this Section the phrase "import or export
restrictions" includes the restriction of imports or exports
by state-trading enterprises to an extent greater then that
which would be permissible under Article 32.
Comment:
The underlying principle of Article 26 is the
protection of the balance of payments and monetary reserves.
It is being generally understood, that the term "monetary
reserves" includes gold and convertible currencies. The
safeguarding of the balance of payments and monetary reserves
can be in principle approached from two different angles:
a) Restrictions on imports from countries with convertible
currencies.
b) Restrictions on exports to countries with inconvertible
currencies.
The consequence of the division of the world in two parts i.e.
one part with convertible currencies and the other part with
inconvertible currencies is a disequilibrium of the price
levels in these two parts. Thus, there prevails & natural
tendency to purchase primary commodities in countries with
convertible currencies, where prices are more advantageous and
sell manufactured products to countries with inconvertible
currencies. Exporters acting in accordance to "commercial
considerations", are being attracted by prices in countries
with inconvertible currencies and negleating trade in countries
with convertible currencies. The present Draft Charter does
not respect the difficulties which arise from the drain of
exportations to countries with inconvertible currencies.
For these reasons the Czechoslovak Delegation has
suggested the above-mentioned amendments.
Paragraph 1
Note 18. The Delegation of Australia submit the following
amendment and comment for the 2nd sentence of paragraph 1
(c .f. E/PC/T/W.215 ): E/PC/T/W/s23.
page 13.
"........Acoordingly, notwithstanding the
provisions of Article 25, any Member, in order to
safeguard its external financial position and balance of
payments, may restrict the quantity or value of
merchandise permitted to be imported [insofar as this is
necessary to safeguard its balance of payments and
monetary reserves."
COMMENT:
The existing wording of paragraph 1 provides that
import restrictions may be imposed "insofar as this is
necessary" to safeguard the Member's position.
Paragraph 2 sets out the requirements limiting the
application and the extent of the restrictions, according
to the circumstances of the Member. The words quoted
from paragraph 1 presumably were not intended to have
force in themselves, since paragraph 2 covers the same
point in greater detail. There may possibly be some
risk, however, that they could be interpreted to mean
that import restrictions ware not "necessary" (and
therefore were not permitted) until every other possible
corrective measure (such as exchange control, exhchange
depreciation, etc.) had been tried and found inadoquate.
The Delegation of the United States of America
submit the following amendment an, comment to paragraph 1
(cf. E/PC/T/W.216): `
1. Some [The] Members may need to use import restrictions
temporarily as a means of safeguarding their external
financial positions and as a step towards the restoration
of equilibrium in their balances of payments on a sound
and lasting basis, particularly in view of their increased
demand for imports needed to carry out theirty domestic
employment, reconstruction, development or social policies. Accordingly,
Note 19.
26:.1 E/PC/T/W/223
page 14.
notwithstanding the provisions of paragraph 1 of Article 25, any
Member may restrict the quantity or value of merchandise
permitted to be imported insofar as this is necessary to safe-
guard its balance of payments and monetary reserves.
COMMENT:
The first two changes are intended tc remove the
implication in the New York draft that import
restrictions to balance of payments reasons are
expected to be used generally and indefinitely.
The other changes are designed to clarify the
intention of the paragraph.
Note 20. The Delegation of Finance propose the following amend-
ment to paragraph 1 (cf. E/PC/T/W.213):
1. The Members 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
normal 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 sufeguard its monetary
resources and restore equilibrium in its normal balance of
payments.
Paragraph 2
Note 21. The Delegation of Australia submit the following
26: 2 (a)
proposal. and comment to sub-paragraph (a) (cf. E/PC/T/W.215):
Paragraph 2(a) . Second Sentence:
".... In determining the extent and severity of
restrictions, due regard should be paid in each case to E/PC/T/W/223
page 15.
any special factors which may be affecting the level.
of the Member's reserves, to any commitments or other
circumstance which, may be affecting its need for
reserves, and to any special credits or other resources
which may be available to protect its reserves,"
COMMENT
The change proposed in paragraph 2 (a) is similarly
designed to remove the possible interpretation that
restrictions could be disallowed on the ground that,
for example, the Member's currency was thought to be
over-valued, and this constituted a "special factor"
affecting the level of its reserves..
It remains clear, of course, that the Organization
has the right, during the course of consultation with the
Member under paragraph 3 (a) or 3 (b), fully to discuss
and recommend alternative action which the Member might
take to meet its difficulties.
Note 22 The Delegation of France propose the following
26: 2 (a)
and (b) amendment to sub-paragraphs (a) and (b) (cf.. E/PC/T/W.213):
2. The use of airport restrictions .under paragraph 1
of this Article shall be subject to the following
requirements:
(a) Delete the words in brackets. The text would
read as follows: "No Member shall institute
any new restrictions or intensify ......"
(b) The Members shall progressively eliminate the
restrictions as the conditions which justified
their institution and intensification under
sub-paragraph (a) improve . They shall remove
the restrictions when subsequent to this pro-
gressive elimination, they are n a position to
satisfy free demand for imports without impair-
ing their normal balance of payments or
jeopardising theirmonetary reserves. E/PC/T/W/223.
page 16.
Note 23. The Chinese Delegation propose the deletion of
26: 2 (c) sub-paragraph (c) (cf. E/PC/T/W.73).
Note 24. The United Kingdom Delegation propose to delete
26: 2 (c)
sub-paragraph (c), substituting in its place the
following text (cf. EPC/T/W.211):
"Members shall not apply the restrictions in such
a manner as to exclude the importation from other
Members of any description of goods in minimum
commercial quantities, provided that during a
transitional period to be determined by the Organ-
isation, this obligation shall not extend to any
description of goods in respect of which domestic
production to meet domestic demand is, for the time
being, severely restricted by Governmental action."
Note 25. The Australian Delegation submit the following
amendment and comment to sub-paragraph (c) (cf.
E/PC/T/W.215 ):
As far as is reasonably practicable, the Members
shall not apply the restrictions in such a manner as
to exclude completely imports of any product [class
of goods.]"
Comment:
The purpose of this sub-paragraph was primarity
to avoid unnecessary damage to the commercial interests
of other Members, by ensuring that good should not be
excluded completely from an accustomed market. It is
suggested, however, that for administrative reasons
soma flexibility should be allowed.
The word "product" is suggested instead of
class of goods" ,because the latter phrase has a very
wide meaning in most customs classsifications.
Note 2c. The Indian Delegation propose to insert the words
26:, 2(c)
"as far as possible" between "not" and "apply" in sub-
paragraph (c) (cf. E/PC/T/W.136).
Note 27. The two delegates expressing a reference for the
26: 2 (c) wording of the First Session (cf. D.C.Report, pages 20-
21) represented Chile and Ozechoslovakia. E/PC/T/W/223
page 17
Paragraph 3
Note 28. The Delegation of the United States of America
26: 3 (a)
submit the following amendment and comment (cf.E/PC/T/W/216)
3.(a) Any Member which is not applying restrictions under para-
graphs 1 and 2 of this Article, but which is considering
the need for their institution under such paragraphs, shall,
before instituting such restrictions (or, in circumstances
in which prior consultation is impracticable, immediately
following upon the institution of such restrictions) con-
sult 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 economics of other Members. The Organiza-
tion shall invite the International Monetary Fund to par-
ticipate in the consultations. No Member shall be required
during such discussions to indicate in advance the choices
of timing of any particular measures which it may ultimate-
ly determine to adopt.
COMMENT:
This addition will eliminate the possible implication
that quantitative restrictions under Article 25,
paragraph 2, require consultation under this sub-
paragraph.
Note 29. The Delegation of China propose the following
26: 3 (a)
amendment (cf. E/PC/T/W.73):
Paragraph 3 (a) : The first sentence should be
amended as follows: "Any member which is not applying
restrictions under Paragraphs 1 and 2 of this Article
but finds itself in need of instituting such
restrictions shall, immediately following upon their
institution with the Organization as to
on the economies of other Members."
The lest sentence of paragraph 3 (a) should be
deleted. E/PC/T/W/223
page18
Note 30. The Delegation of Australia submit the following
26: 3 (C)
amendment and comment to sub-paragraph (c) (cf .E/PC/T/W. 215):
Paragraph 3 (c): Final Sentence:
".....To the extent to which such approval has
been given, the provisions of sub-paragraph (a) of
this paragraph shall not apply, and 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."
COMMMENT
If a Member has obtained the prior approval of the
Organization for restrictions, after consultation
in terms of paragraph 3 (c), it seems unnecessary
and undesirable that the Member should be required
any tine with any Member which is in fact applying
restrictions .
Note 31.
26: 3 ( c) The observation on the applicability of sub-para-
graph (a) (D.C. Report, page 21) was made by the delegate
for Australia .
Note 32.
26: 73 (d) The Delegation of the United States of America
submit the following amendment and comment (cf.
E/PC/T/W. 216)
(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 this Article [Those paragraphs] ¹ or
of Articles 27 or [ and ] 28, or in a manner which
unnecessarily damages its commercial interests,
may brings the matter for discussion to the Organizati on. E/PC/T/W/223
page 19
[The Member applying the rstrictions shall
then participate in discussions of the reasons for
its action. The] If the Organization [, if it]
is setisfied that there is a prima facie case that
the complaining Member's interests are adversely
affected, it shall afford the Member applying the
restrictions full opportunity to justify its action,
and shall consult [may after consultation] with the
International Monetary Fund on any aspect of the
matter falling within the competance of the Fund
and, if it]. The Organization [ after submitting]
may submit observations to the parties with the aim
of achieving a satisfactory settlement of the matter
in question. If no such settlement is reached, the
Organization shalll recommend the withdrawal or
modification of restrictions which it determines are
being applied in a manner inconsistent with the pro-
visions of [paragraphs 1 and 2 of ] this Article or
of article 27 or 28 or in a manner which unnecessarily
damages the interests 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
shall be released from. such obligations incurred
under this Charter towards the Member applying
the restrictions as the Organization may approve. E/PC/T/W/223
page 20
COMMENT:
1/ This sub-paragraph should not be limited
to ncn-compliance with paragraphs 1 and
2 of this Article. The procedure should
be equally applicable to, and frequently
will involve of necessity, questions of
non-compliance with other paragraphs,
such as 3, 4 and 7.
2/ The substitution of the word "shall" for
"may" is to avoid the implication that
the Organization would be free to condone
obvious violations of the provisions of
the Article.
The other changes in this sub-paragraph are
drafting suggestions.
Note 33. 1) The addition mentioned in the D.C. Report (page 22)
26: 3 (d) under item (c) wau proposed by the delegate of Belgium and
seconded by the delegates of Canada and the United States.
2) The suggestion - mentioned in the D.C. Report (page 22)
under item (d) was made by the delegate of the United
States.
Note 34. The Delegation of Belgium-Luxembourg proposes
26: 3 (e)
to add the following words at the end of the first
sentence of sub-paragraph (e) (of. E/PC/T/W.209)
"in so far as the methods used are aimed at the development
.
rather than the contraction of international exchange."
The present amendment aims at bringing Article 26
into line with Chapters III and IV and with the
fundamental objects of the Charter. The
observations of the Sub-Committee on Article 6
(cf. E/PC/T/95, pages 4 and 5) hold equally good
in the case envisaged in paragraph 3 (c) of
Article 26.
Note 35.
26: 3 (e) The French Delegation propose the following
amendment (cf. E/PC/T/W/213): E/PC/T/W/223
page 21
(e) The Organization, when intervening under
sub-paragraph (b) or making recommendations
under sub-paragraph (d),.....
Paragraph 4
Note 36. The Delegation of Australia submit the following
26: 4 amendment and comment to this paragraph (cf.E/PC/T/W/
215):
"In giving effect to the restrictions on imports
under this Article.] A Member applying import
restrictions in accordance with paragraphs 1 and 2 of
this Article may [restrict imports of products accord-
ing to their relative essentiality] determine the
scope, severity and incidence of the restrictions, in
relation to imports of different products or classes
of products, in such a way as to give priority to the
importation of those products which are more essential
in the light of [required by] its domestic employment,
reconstruction, development or social policies and,
programmes. In do doing, the Member shall take account
of the effects of its restrictions on the economies
of other Members, and shall seek to avoid [all]
unnecessary damage to [the commercial] their interests
[of other Members].
COMMENT.
This re-wording is intended to clarify the
meaning and purpose of the paragraph.
Note 37.
26: 4 The French Delegation propose the following
revision ('cf. E/PC/T/W/213):
"4. In giving effect to the restrictions on
imports under paragraph 1 of this Article .... " E/PC/T/W/223
page 22
Note 38.
26: 4
Note 39.
26: 5
The four delegates who felt that the text
should be clarified (D.C. Report, page 22)
represented Brazil, Chile, Czechoslovikia and France,
Paragraph 5
The Cuban Delegation, referring to Article 6
of Chapter III, propose the insertion of the follow-
ing new paragraph 5, renumbering the present
paragraphs 5, 6 and 7 accordingly (Cf.E/PC/T/W/194):
"5. Any Member which considers that its
balance of payment difficulties are based on the
disequilibrium in the balance of payments of another
Member or other Members, before acting in accordance
with the foregoing paragraphs, and in order to
implement the provision of Article 6, shall bring
the matter for discussion to the Organization. The
Members concened shall then participate in
discussions on the possibilities and forms of
common action."
Secretariat Comment: The "Sub-Committee on Chapter
III" in its report to Commission A (E/PC/T/95) has
proposed the following text for Article 6:
Article 6
Removal of Maladjustments within the
Balance of Payments.
1. In the event that a persistent maladjustment
within a Member's balance of parents 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
4 without resort to trade restrictions, the Member
shall make its full contribution, together with
appropriate action on the part of the other Members
concernod, towards correcting the situation. E/PC/T/W/223
page 23.
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.
The following comments were submitted by this Sub-
Committee:
Article 6
19. The Sub-committee has proposed a number of
changes in Article 6 after an examination of the amend-
ments proposed by the Delegations of Australia, France,
the United Kingdom and the United States of America.
The Sub-committee considers that the revised version of
this article describes more precisely than the previous
text the situation which it is intended to cover and
that the responsibilities of Members in such a
situation are more clearly stated. In addition to
certain drafting changes, the Sub-committes would draw
attention to the significant alterations proposed in
the text.
20. The Sub-committee has replaced the words
fundamentall disequilibrium" by the expression
"persistent maladjustment within the balance of payments".
In the view of the Sub-committee the term fundamental
disequilibrium" was not satisfactory for the reason
that it appears in the Articles of Agreement of the
International Monetary Fund with a special meaning which
might not be always applicable to the conditions envisaged
in this paragraph.
21. By a maladjustment within a country's balance
of payments the Sub-committee intends to refer to a
situation in which an abnormal or undesirable relation-
ship exists between the different items which make up
that balance and in particular where a balance is
achieved only be means of an undue movement of items of
the type which enter into monetary reserves.
22. The characterisation of the state of aff airs as
one in which the persistent maladjustment "is a major
factor in a situation in which other Members are
involved in balance of payments difficulties" is intended
to stress, firstly, that balance of payments difficulties
are not necessarily caused by maladjustments within
another country's balance of payments , and secondly,
that the Article is intended to apply only when the
persistent maladjustment is a major factor in the
situation. E/PC/T/W/223
page 24.
23. The Sub-committee has expanded the phrase
in the former text, "handicap them in maintaining
employment" to "handicap thom in carrying out the pro-
visions of Article 4 without rosort to trade
restrictions". This change is designed to make it
clear that the purpose of the Article is that suitable
action should be taken so that Members may be able not
merely to pursue the objective of maintaining employment,
production and demand, but also to do so without
resorting to trade restrictions as a means of remedying
their balance of payments difficulties.
24. The words "together with appropriate action on
the part of the other Members concerned" have been added
to make it clear that all Members involved in the
situation have a responsibility to take what action
they appropriately can to assist in overcoming the
difficulties.
25. There are various moans by which situations of
this kind can be corrected, some of which have been
indicated in Session E on page 5 of the Report of the
First Session (E/PC/T/33). It seems desirable, however,
that wherever possible, methods which expand rather
than contract international trade should be employed.
With this consideration in mind, the Sub-committee has
suggested the addition of the second paragraph of this
Article.
Paragraphs 6 and 7
No comments, but cf. Note 17 (Czechoslovak amendment).
Note 40 Suggested new Article. (26 - A)
26 - A
The Indian Delegation proposes the insertion of the
following new article after Article 26:
"26A. Quantitative Restrictions for Protectivc Purposes
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 parmissible under this Charter.
Provided that no such restrictions shall, except in
accordance with the provisions of paragraph 2 of
Article 13, be applied to any product in respect of
which the importing Member country has assumed an
obligation through negotiations with any other Member
or Members pursuant to Chapter.V. E/PC/T/W/223
page 25.
2. 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 matter for discussion to the Organization.
The Member imposing restrictions shall then participate
in the discussions of the reasons of its action. The
Organization shall, if it is satisfied that there is
prima facie case that the comylaining Members' interests
are adversely affected, consider the complaint It may
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 arc not withdrawn or modified in accordance
with the recommendations of the Orgnization 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. "
(Note: This aimendment supersedes the amendment to
Article 13 proposed in New York by the Indian
Delegation of. D.C. Report page 8.)
Article 27 - Non-discrimiinatory administration
of quantitative restrictions.
Paragraph 1
No comments.
Paragraph 2
Note 41 The United States of America Delegation submit the
27: 2 (d)
and (e) following amendment and comments to sub-paragraphs (d)
and (e) (cf. E/PC/T/W.208):
(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 con-
cerned from a particular country or source. E/PC/T/W/223
page 26
Moreover, such licenses or permits shall not be
distributed among importing or supplying enterprises
in such manner, or be subjecet to such conditions as
to result in discrimination against any Member.¹
(e) In cases in which a quote is allocated
among [applying] supplying countries, [the shares of
the various supplying Member countries should in
principle be determined in eccordance with commerical
considerations such as price, quality and customary
sources of supply. For the purpose of appraising
such commercial considerations.]² The Mombar applying
the restrictions may seek agreement with respect to
the allocation of shares in the quota with all other
Members having a substintial 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 pro-
portions, supplied by such Member countries during a
previous representative, period, of the total quantity
or value of imports of the product, due account being
taken of any special factors which may have affected
or mry be affecting the trade in the product. No
conditions or form lities 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. quote may relate, E/PC/T/W/223
page 27
Comment:
1) This addition to sub-paragraph (d) is proposed
in order to make it clear that the intent of
the sub-paragraph is to provide that there shall
be no discrimination, direct or indirect, in the
administration of import license systems.
2) The guiding principle to be followed in quote
allocation is set forth in sub-paragraph (a).
Sub-paragraph (a) deals with the appliction of
this principle in different words if this is all
that is intended.
An objection to the mention of the principle
of commercial considerations in this context
is th.t it seems to imply that the government
would have its own commercial interests in
mind (as in the case of state trading) whereas
in fact governmental allocations should merely
reflect the factor of commercial considerations
is it may be influencing or may have influenced,
Il trade, whether public or private, in the
product subject to the mestrictions . This
application to quote allocations of the prin-
ciple of commercial considerations, however,
is already fully covered by sub-paragraph ( )
Note 42) The Czechoslovak Delegation proposes the following
revision of sub-paragraph (e) (cf. E/PC/T/W/219):
"Per. 2 (e) In crises in which a quote is allocated
among supplying countries, their shares should in
principle be determined in accordance with considera-
tions such as price, quality , transporation facilities
and payment conditions, customary sources of supply
etc. For the purpose of appraising such considera-
.
tions, . .."
Note 43 The Delegetion of the United States of America
propose to insert 4 revised text of sub-paragraph 3 (d)
as a last sentence into the present sub-paragraph 3 (c),
with the present sub-paragraph 3 (b) thus becoming sub-
paragraph 3 (a). The following revision and comment
have been submitted (cf. E/PC/T/W.208, page 5): E/PC/T/W223
page 28
In cases [where] in which import licenses are
issued in connection with import restrictions, the
Member epplying the restriction shall provide, upon
the request of any Member having an interest in the
trade in the product concerned, all relevnat informa-
tion concerning, the administration of the restriction,
the import licenses granted over a past recent period
and the distribution of such licenses among supplying
countries [provided, however, that there shall be, no
obligation to supply information as to the names of
importing or supplying enterprises]
Comment:
1) Since paragraph 3 (a) and (c) both deal with
the matter of providing information to Members
regarding the of administration of quantitative
restrictions, it appears more logical. to group
these together in a single sub-paragraph
2) The proposel to delate the proviso permit-
ting withholding of the names of importing and
supplying enterprises is based on the view that
since the greting of licenses to particular
enterprises may frequently constitute in efffect
a discriminatioagag.insta,,rticalrr counte;-s, the
names of enterprises receiving licenses should
note withbe hld frome Mmbers which reequst them,
Not44e The Czechoslovek Delaegtion submit eth following
and ()c)amendment and comment to paragraph 3 (ba) nd (c)
(.cf PE/C/T/W/219):
Par. 3 (b) In thease c ofm iport restrictions involv-
ing the fixing of queots, the Mbemeapr plying the
restrictions alshl give fulinl foarmtion tonterested i
Members of eth total quantity ora vlue ..
Par. 3 (c) Delete the words added by the D.C. in
New York.
Comment:
The Czechoslovek Delegation feels that disclosing
information in the way referred to in par.3(b) and (e)
through public notice might seriously damage the position
of a country concerned, particularly with regard to
non-Members. On the other hand it is considered as quite E/PC/T/W/223
page 29.
adequate to supply the other Members who are interested
in the particular trade with a confidential information
containing all detail. Should there be no important
non-Member countries, Czechoslovakia would not object
to a publication of such notices.
Paragraph 4
Note 45 The Chinese Delegation propose the deletion of the
27: 4 words "or under paragraph 2 (e) of Article 25" in the
first sentence of paragraph 4. (cf. E/PC/T/W.74).
Note 46 The reservation (D.C. Report, page 24) was made by
27 : 4 the delegate of China.
Paragraph 5
No comments.
Article 28 - Exceptions to the rule of
Non-Discrimination
Note 47 The United Kingdom Delegation will wish to raise
certain points in connection with this Article (c.
E/PC/T/W.211).
Paragraph 1
Note 48 The Delegation of the United States of America
28:1 (b) propose the following revision of sub-paragraph 1 (b)
(cf. E/PC/T/W.216):
1 (b) prohibitions or restrictions in accordance with
sub-paragraph [s] 2(a) (i) [or 2 (d)] of Article 25.
Comment:
The reference to sub-paragraph 2 (d) of Article 25
has been deleted because of the proposal of the
U.S. Delegation made in a separate document to
delete that sub-paragraph.
Secretariat comment : of. Note 6 above.
Note 49 The Delegation of India propose the following
28: 1(b) revision of this sub-paragraph:
for "paragraphs 2 (a) (i) or 2(d) of Article 25",
read "paragraphs 2(a) (i), 2(d) or 2(g) of Article 25". E/PC/T/W/223
page 30.
Secretariat comment This revision is contingent
upon the suggested addition of a new paragraph 2 (g)
of Article 25, referred to above in Note 15.
Note 50 The Delegation of the United States of America
28: 1 (c) propose the deletion of sub-paragraph. 1 (c) in view of
their proposal to add a new paragraph 7 to Article 29
(cf. E/PC/T/W.216 and Note 59 below).
Note 51 The Cuban Delegation propose the insertion of a
28: 1 (d) new sub-paragraph (d), renumbering the present sub-
paragraph (d) and (e) accordingly, as follows (E/PC/T/W.194):
(d) Conditions attaching to import which are necessary
to insure that an importing Member country is enabled
to pay for its import with its own currency or the
currency of any Member of the International Manetary
Fund specified by the importing Member country."
Note 52 The United States of America Delegation submit the
28 1 (d)(ii) following amendment and comment (cf. E/PC/T/W.216)
1(d)(ii) assist in the period until 31 December 1951,
by measures not involving a substantial departure from
the provisions of Article 27, [a] another country whose
economy has been dispupted by war;
Comment
This change is designed to make clear the intention
to cover the case of one Member helping another,
but not the case of one Member helping itself.
Note 53 The Australian Delegation submit the following
28: 1(e) revision and comment to sub-paragraph 1 (e) (cf.
E/PC/T/W.214) E/PC/T/W/223
page 31.
28. 1(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, Land (ii) have equivalent affect to 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 agree-
ment which 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 import restrictions under (i) of this sub-paragraph
in special circumstances and only with the prior approval
of the Organisation in agreement with the International
Monetary Fund].
Comment:
As was explained in the Report of the First session,
Part 2, Chapter III, Section C, 3(e) to (j), pages
14 and 15, the purpose in this paragraph was to deal
with the problems arising from the existence of in-
convertible currencies. However, as was implied in
that Report, it is the country carrying on trade
with other countries which have inconvertible
currencies which needs to exercise discrimination
and not necessarily the country which itself has an
inconvertible currency.
As the paragraph is at present drafted, it requires
a Member who wishes to exercise discrimination
either to be already applying discriminatory exchange
restrictions else to get prior permission for the
discrimination from both the Organisation and the
Monetary Fund. It is suggested that since exchange
restrictions and trade restrictions are to some
extent.alternative methods of dealing with the same
problem, a country should not be required to impose E/PC/T/W/223
page 32.
both forms of restriction if one sufficient.
Moreover, the present draft makes it easier for a
country with an inconvertible currency to exercise
discrimination than it is for a country which has
accepted the obligations of convertibility. It seems
likely that this provision would tend to encourage
countries to remain inconvertible which would be a
result quite contrary to that desired.
Paragraph 2
Note 54 The Australian Delegation submit the following
28: 2 amendment and comment to paragraph 2 (cf. E/PC/T/W.214):
28.2.
If the Organisation 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 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 ..... etc.
Comment:
It is suggested that the words enclosed in square
brackets should be deleted for the following reasons
(a) It gives the Organisation power to disallow
exchange restrictions which may have been
specifically allowed by the Monetary Fund.
Although perhaps unlikely in practice, it
would be possible for the Organisation thus
to deny a Member the right to take action
which it was allowed to do by the Fund which
is the body primarily concorned with exchange
restrictions.
(b) The inclusion of these words therefore appears
to be inconsistent with the general attitude
adopted in this Section of the Charter that
the Monetary Fund should be left with final
responsibility in the field of exchange
regulation. Paragraphs 1, 2 and 6 of
Article 26 appear to bear out this general
attitude. E/PC/T/W/223
page 33.
(c) Unless the words in square brackets are
deleted from Article 28, 2,..the -provisions
of Article 29, 6 produce the curious result
that the Organisation can over-ride the
opinion of the Monetary Fund if the Member
concerned is also a Member of the Fund but
cannot do so if the Member concerned is not
a Member of the Fund, but is operating under
a special exchange agreement.
Note 55 The Cuban Delegation proposes to DELETE the words
"if it so desires" after the words "Provided that a Member
may " ( cf. E/PC/T/W.194 ) .
Paragraph 3.
Note 56 The United States Delegation propose the following
28 :3 revision of this paragraph (cf.E/PC/T/W.216):
3. When three-quarters on the Members of the Organization
tion have accepted the obligations of Sections 2, 3 and
4 of Article VIIII of the Articles of Agreement of the
International Monetary Fund, but in any event before
31 December 1951, the Organization shall review the
operations 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].
Comment:
The last clause has been comitted to eliminate the
possible interpretation that it is the wisdom rather
than the continued necessity for discriminatory
import restrictions which is to be reviewed.
Note 57 The countries represented by the delagates objecting
28 : 3 to the words "which restricts the expansion of world
trade" (D.C. Report, page 24) were not identified in the
original report of the Drafting Committee. E/PC/T/W/223
page 34.
Article 29 - Exchange Arrangements
Paragraph 1
Note 58 The Delegation of the United States of America
29: 1
submits the following amendment and comment to this para-.
graph ( cf.E/PC/T/W.216, page 5).
1. The Organization shall seek co-operation with the
International Monetary Fund to the end that the Organiza-
tion and the Fund may pursue a co-ordinated policy with
regard to exchange questions within the [competence]
jurisdiction of the Fund and questions of quantitative
restrictions and other trade measures within the
[competence] jurisdiction of the Organization. In all
cases in which the Organization is called upon to con-
sider or deal with balance-of-payments problems the
Organization shall consult the International Monetary
Fund fully regarding the problem. After such con-
sultation the Organization shall accept the determination
of the International Monetary Fund as to all facts re-
lating to exchange controls or restrictions, as to
statistics regarding general international balance-of-
payments or the balance of payments of any Member, and as
to the analysis of the balance-of-payments position.
Comment:
The first two amendments are designed to avoid
ambiguity, since the word "competence" is used with a
different meaning, in paragraph 3(d) of Article 26 and
in paragraph 2 of Article 28. The two new sentences
proposed for addition to the paragraph are designed
to clarify the function of the Fund when consulted
on balance of payments questions, and to relieve the
Organization of the necessity of building up a
seperate staff of technical experts who would
duplicate the work of the Fund experts, Aceeptance
of this amendment would make it possible to delete
ciany references to consultation with the Fund,
particularly in Article 26. E/PC/T/W/223
page 35.
Paragraphs 2, 3, 4, 5 and 6
No comments.
Suggested new paragraph 7:
The Delegation of the United States of America
propose the insertion of a new paragraph 7 with the
following text (cf. E/PC/T/W.216, pages 5 and 6).
7. Nothing in this section is intended to preclude a
Member from requiring that its exporters accept only
its own currency or the currencies of any one or more
members of the International Menetary Fund, as it may
specify in payment for exports.
Comment:
This provision constitutes, in substance, paragraph
1 (c) of Article 28 of the New York draft. It is
misplaced in Article 28, since it does not constitute
an exception to the rule of non-discrimination on
quotas. As rephrased here, it is clearly an ex-
change matter rather than a provision involving
quantitative restrictions, and would therefore
belong mst appropriately in Article 29.
Secretariat comment : For the corresponding change
in Article 28, paragraph 1 (c) see above under Note 50.
Suggested new Article 29 - A
Note 60 The proposal to insert a new article after Article 29
29 - A (cf. D.C. Report, page 25) was made by the delegate for
China.
Note 59
29 : 7 |
GATT Library | fd465hc1233 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Chapter V. Section E. Amendment proposed by the Chilean Delegation | United Nations Economic and Social Council, June 13, 1947 | United Nations. Economic and Social Council | 13/06/1947 | official documents | E/PC/T/W/192 and E/PC/T/W/177-207 | https://exhibits.stanford.edu/gatt/catalog/fd465hc1233 | fd465hc1233_90050336.xml | GATT_152 | 343 | 2,447 | ECONOMIC CONSEIL. RESTRICTED
AND ECONOMIQUE E/PC/T/W/192.
SOCIAL COUNCIL 13 June 1947.
ET SOCIAL ORIGINAL: ENGLISH.
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFRENCE ON TRADE AND EMPLOYMENT.
CHAPTER V. SECTION E.
AMENDMENT PROPOSED BY THE CHILEAN DELEGATION.
Article 31. Paragraph 3.
Record paragraph 3 as follows:
"This Article shall apply to any enterprise, organ or
agency in which there is effective control by a Member
Government. It shall not apply, however, to enter-
prises whose external purchase or sales of any product
are influenced solely by commercial considerations."
or alternatively:
"This Article shall apply to any enterprise, organ or
agency in which there is effective control by a Member
Government or over whose trading operations a Member
Government exercises effective control by virtue of the
special or exclusive Privileges granted to the enter-
prise. It shall not apply however, to enterprises whose
external purchases or sales of any product are influenced
solely by commercial considerations."
COMMENTS:-
The sole purpose of the proposed amendment is to make
perfectly clear when an enterprise, organ or agency is to be
considered as a State Trading Enterprise, within the meaning and
subject to the provisions of Article 31. It is our understand-
ing that what is fundamentally pursue by this Article is that
there shall be "non-discriminatory administration of State Trading
Enterprises", tLat is, that all business transactions carried out
by these so called State Enterprises. who receive special or
exclusive privileges from, a Member Government, shall be influenced
solely by commercial and not by political considerations. If
this is so, we consider that the definition approved in New York,
even if one or the other of the two alternatives is added to
Paragraph 3, is absolutely inadequate and vague. There are, to
be sure, quite a number of enterprises who would come under that
definition and yet their external purchases and/or sales are
influenced solely by commercial considerations and not by
political considerations. We consider that the provisions of
Article 31 should not be applicable to these latter enterprises.
UNITED NATIONS
NATIONS UNIES |
GATT Library | pd284ct6587 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Chapter V. Section E. Suggested new text (by the Czechoslovak delegation) Section E - State Trading | United Nations Economic and Social Council, June 12, 1947 | United Nations. Economic and Social Council | 12/06/1947 | official documents | E/PC/T/W/187 and E/PC/T/W/177-207 | https://exhibits.stanford.edu/gatt/catalog/pd284ct6587 | pd284ct6587_90050330.xml | GATT_152 | 807 | 5,491 | UNITED NATIONS NATIONS UNIES
ECONOMIC CONSEIL - RESTRICTED
AND ECONOMIQUE
SOCIAL COUNCIL ET SOCIAL ORIGINAL: ENGLISH
SECOND SESSION OF THE PREPARATORY COMMITTE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMLOYMENT.
CHAPTER V. SECTION E.
Suggested new text (by the CzechoslovaK Delezation)
Section E - State Trading.
Article A/i/ If any Member establishes or maintains enter-
prises, whether state owned or private which have been granted
exclusive or special privileges, formally or in effect, to
import or export, the commerce of other Members shall be accorded
treatment no less favourable than that accorded to any country
other than that in which the enterprises are located in respect
of purchases and sales. To this end such enterprises shall,
in making their external purchases or sales of any product, be
influenced 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 other provisions of this Charter.
/ii/ The provision of subparagraph /i/ of this
Article shall not apply to purchases or imports of products for
governmental use and not for use in the production of goods for
sale. However, the Members shall accord to the commerce of
other Members fair and equitable treatment having full regard to
all relevant circumstances.
/iii/ This Article shall apply to any enterprise,
organ or agency in which there is effective control by a Member
government.
Article B/i/ In any Member other than a Member subject to
the provisions concerning a complete monopoly of foreign trade
establishes, maintains or authorizes enterprises having
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, having an interest in the trade
with that Member in the product concerned, enter into
negotiations with such Member in order to assure exports or
imports of the monopolized product in adequate quantities at
reasonable prices.
/ii/In applying the provisions of this Article, due
regard shall be had to the fact that some monopolies are
established and operated mainly for revenue, health or security
purposes.
Article C If representations according to Article 35 are
made in respect of state trading operations, the Member may with-
hold confidential information, relating to its national security
or which, if disclosed, would materially damage the legitimate
interests of the enterprise concerned. E/PC/T/W/187
page 2
Comment:
The Czechoslovak Delegation wants to draw the attention
of the Preparatory Committee to the declarations made by
various delegations at the beginning of the Second Session
and also to the principle contained in the Charter, i.e. that
the Charter should enable all states of whatever political,
economical and social structure to collaborate peacefully in
the attainment of the purposes of the Charter. One of the very
grave problems which the Preparatory Committee has to salve is
the economic collaboration of countries which are "free-trade
countries" and countries which regulate thair foreign trade.
In many raspects the institutions and systems of these two
are quite similar but in other respects they differ. Having
considered this, the Czachoslovak Delegation welcomes the Naw
Zealand amendment as submitted in document E/PC/T/Wi101 which
it regards as the most appropriate way to harmonize these
various systems of foreign trade. The Czechoslovak Delegation
feels that this amendment merits a special section in the
Charter, since the system of control of foreign trade envisaged
there necessarily does not presume that trade has actually to
be conducted by state trading enterprises only and operates
through private or state enterprises. That is why the
Czechoslovak Delegation suggests that the New Zealand amendment
be placed first. The provisions concerning state trading
would follow.
As to tho D.C. Draft of Article 32 the Czechoslovak
Delegation felt itself obliged to simplify the whole text
bacause it appeared during the tariff negotiations that the
provisions of Article 32 were impracticable. In this respect
the Czechoslovak Delegation should like to draw the attention
of the Preparatory Committee to the report of the International
Chamber of Commerce (Document E/PC/T/44, page 32, Article 32,
Expansion of Trade by State Monopolies of Individual Products).
The text of the ICC's comment on this Article runs as follows:
This article, by attempting to establish principles for
the price policies of State monopolies of individual products,
enters into a very difficult and controversial field and
establishes rules which will inevitably become the object of
future controversy. The I.C.C. considers it preferable to
limit the Charter's provisions concerning the behaviour of
State monopolies of individual products to simple general rules,
leaving the detailed interpretation and administration of
those rules to the I.T.O. itself.
Note:
As may be seen from the present Draft, the whole text
has been divided provisionally into 3 articles. The final
numbering of these articles and their heading has been left
to the consideration of the Subcommittee concerned. |
GATT Library | sp104yg1467 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Chapter VI. Amendment to Article 46 proposed by the United Kingdom Delegation | United Nations Economic and Social Council, August 14, 1947 | United Nations. Economic and Social Council | 14/08/1947 | official documents | E/PC/T/W/292 and E/PC/T/W/261-306 | https://exhibits.stanford.edu/gatt/catalog/sp104yg1467 | sp104yg1467_90050443.xml | GATT_152 | 165 | 1,098 | UNITED NATIONS
ECONOMIC
AND
SOCIAL COUNCIL
NATIONS UNIES CONSEIL
ECONOMIQUE
ET SOCIAL
RESTRICTED
E/PC/T/W/292
14 August, 1947
ORIGINAL: ENGLISH
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT.
CHAPTER VI.
Amendment to Article 46 proposed by the
United Kingdom Delegation.
For paragraph 1(b) as it now appears in
brackets substitute:-
"Any bilateral agreement relating to the
purchase or sale of a commodity falling
under Section E of Chapter V."
The brackets now appearing round paragraph 2
of Article 46 should be removed.
DEUXIEME SESSION DE LA COMMISSION PREPARATOIRE
DE LA CONFERENCE DU COMMERCE ET DE L'EMPLOI
DE L'ORGANISATION DES NATIONS UNIES
CHAPITRE VI.
Amendement a l'article 46 propose par la délégation
du Royaume Uni.
Remplace l'alinea (b) du paragraphe 1 tel qu'il
figure actuellement entre crochets par:-
"Tout accord bilateral portant sur l'achat ou la vante
d'un produit visé à la Section E du Chapitre V."
Supprimer les crochets qui encadrent actuellement le
paragraphe 2 de l'article 46.
. |
GATT Library | ft429ws3794 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Chapter VII. (Articles 46-60). Inter-Governmental commodity arrangements annotated agenda | United Nations Economic and Social Council, June 2, 1947 | United Nations. Economic and Social Council | 02/06/1947 | official documents | E/PC/T/W/157 and E/PC/T/W/151-176 | https://exhibits.stanford.edu/gatt/catalog/ft429ws3794 | ft429ws3794_90050293.xml | GATT_152 | 4,543 | 31,191 | UNITED NATIONS NATIONS UNIES RESTRICTED
E/PC/T/W/157
ECONOMIC CONSEIL 2 June 1947
AND ECONOMIQUE
SOCIAL COUNCIL ET SOCIAL
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT.
CHAPTER VII
(Articles 46-60).
INTER-GOVERNMENTAL COMMODITY ARRANGEMENTS
ANNOTATED AGENDA.
This Agenda is to be read in conjunction with the Report
of the Drafting Committes (E/PC/T/34), called "D.C. Report"
below.
It incorporates reservations and amendments and ref erred
to in the Report of the Drafting Committee and all proposals
handed to the Secretariat by Delegations up to Saturday, 31st
May 1947. Underlining indicates additions to, and square brackets
deletions from, the text of the D.C. Report.
The following E/PC/T papers contain comments by various
delegations on their proposals regarding Chapter VII:-
Australian Delegation - W/154
Czechoslovak " - W/148
French " - W/156
Indian " - W/145
United Kingdom " - W/137
United States " - W/153
GENERAL COMMENTS:
1. Rearrangement of Chapter:
The United Kingdom (W/137) and Australian (W/154)
Delegations have suggested rearrangement of the Articles of
the Chapter.
2. Functions of Specialized Agencies in relation to
Commodity Arrangements:
The French Delegation considers it desirable to mention
in the Preparatory Committee's Report that the Economic and
Social Council should study the question whether a division of
competence should not be made as between the Food and Agriculture
organizations on the one hand and the International Trade Organ-
ization on the. other hand, in connection with the formulation
and application cf inter-governnental commodity arrangements.
3. Reservation to whole Chapter:
The Brazilian Delegation has reserved its position
on the whole Chapter insofar as its operation might interfere
with the production of primary commodities for home consumption
(D.C. Report, page 38). E/PC/T/W/157
page 2
4. Suggested Amendments to Chapter V concerning the subject
matter of Chapter VII:
Article 37:
The United Kingdom Delegation suggests that a reference to
Chapter VII should be inserted in article 37 ("General Exceptions")
in the following form:
"(1) Undertaken in pursuance of obligations under inter-
governmental commodity arrangements concluded in accord-
ance with the Provisions of Chapter VII."
The Indian Delegation proposes the same insertion as the
United Kingdom with the addition of the following words:
"under the sponsorship of the Food and Agriculture Organization".
In both cases the proposed addition to article 37 would in-
volve the deletion of sub-paragraph (d) of paragraph 2 of Article 25.
ARTICLE 4b
DIFFICULTIES RELATING TO PRIMARY COMMODITY
The United States Delegation proposes the following changes:
(comment on W/152 page 2),
"The Members recognize that the conditions under which some
[relationship between production and consumption of some]
primary commodities are produced, exchanged and consumed
are such that international trade in these commodities may
be affected by [may present] special difficulties, [.] such
as the persistence of [These special difficulties are
different in character from those which manufactured goods
present generally. They arise out of such conditions as
the] disequilibrium between production and consumption,
the accumulation of burdensome stocks and pronounced
fluctuations in prices [.] which do not characterize the
trade in manufactured goods, and that such difficulties
may have [They may have serious adverse effects on the
interests of producers and consumers, as well as] wide-
spread repercussions that would jeopardize the general
policy [jeopardizing general policies] of economic ex-
pansion. They agree that such difficulties may, at times,
necessitate exceptional treatment or the international
trade in such commodities and that such treatment may be
provided through inter-governmental commodity arrange-
ments concluded in conformity with the provisions of
this Chapter.
ARTICLE 47
OBJECTIVES OF INTER-GOVERNMENTAL COMMIDTY ARRANGEMENTS
The United Kingdom Delegation suggests that the title of the
article should be "Objectives of Inter-governmental Action in
regard to Primary Commodities".
Preamble:
The United States Delegation proposes:
"Inter-governmental commodity arrangements may be employed
to achieve [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:"
The United Kingdom Delegation proposes that the following
be substituted for the present preamble:
"The Members recognize that inter-governmental action E/PC/T/W/157
page 3.
in regard to primary commodities may be required
(a) To enable countries ... purposes of this Charter."
Sub-paragraph (a):
The New Zealand Delegation proposes the insertion of the
words "and consumption" between the words "production" and
"adjustments".
The Australian Delegation proposes:
"(a) to prevent or alleviate the serious economic
problems which may arise when production adjustments
cannot be effected by /the free play of normal market
forces alone [as rapidly as the circumstances require].
Sub-paragraph (b):
No proposals.
Sub-paragraph (c):
The United Kingdom Delegation does not support the addition
to this sub-paragraph of the words now in square brackets.
The United States Delegation suggests:
"(c) to moderate pronounced fluctuations in the price
of a primary commodity above and below a [the] level
which is remunerative to efficient producers and fair
to consumers and which approaches 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 consumer
Sub-paragraph (d):
The United States Delegation suggests the possibility of a
separate Section dealing with conservation agreements (see W/153
page 10).
Sub-Paragraph (e):
The Czechoslovak Delegation proposes:
"To provide for an expansion of the production and
equitable distribution it fair prices of a primary
commodities in such short supply as serious to prejudice
the interests of consumers." (See W/148 for comment).
The United States Delegation considers that this objective
does not appropriately belong to Article 47 [see W/153 page 2].
Article 47A
The United Kingdom Delegation proposes (W/137, page 2) the
insertion of the following new Article after the present 47:
"Procedure for Inter-governmental Action in regard
to Primary Commodities:
The Members agree to follow the procedure for dealing with
the special difficulties referred to in Article 46 which is
prescribed in Article 48 to 56 and in the first place to study any
such difficulties in accordance with the provisions of Article 48, E/PC/T/W/157
page 4.
The Members agree that if the study of a commodity
in the production, consumption or trade of which they are
substantially interested shows that the difficulties are
unlikely to be overcome except by inter-governmental action,
they will participate in an inter-governmental conference
to be called in accordance with Article 49. Inter-
governmental action may take two forms, arrangements not
involving either regulation of the production, export or
import of a commodity or regulation of prices, in which
event the provisions of Article 51 apply, and agreements
involving such regulation, in which event the provisions
of Article 51 and also of Articles 52 and 53 apply."
ARTICLE 48
SPECIAL COMMODITY STUDIES
Paragraph 1:
1. The New Zealand Delegation proposes deletion of the word
"primary" from the third line.
2. The United States Delegation proposes
"1. Any Member substantially interested in the production or
consumption of, or trade in, a particular primary
commoditity shall be entitled, if it considers that
international trade in the commodity is, or is likely to be,
affected by special difficulties the type referred to in
Article 46, [exist or are expected to arise regarding the
commodity] to ask that a study of the [that] commodity
be made."
Paragraph 2:
The United Kingdom Delegation proposes
"2. Unless it resolves that a prima facie case has not been
established, the Organization shall promptly invite all
Members to appoint representatives to a Study Group to
make a study of the commodity, it they consider that their
interest in the production, consumption or trade of the
commodity ïs sufficient to justify their participation in
the Group. Non-Members may also bc similarly invited."
Paragraph 3.
The United Kingdom Delegation proposes
"3 The Study Group shall promptly investigate the special
difficulties which are considered to exist or expected
to arise regarding the commodity, and shall report to the
Governments represented upon it whether they are so
serious that they are unlikely to be overcome except by
inter-governmental action. If it finds that this is the
case it shall recommend to the Governments concerned
and the Organisation what form that inter-Governmental
action should take." E/PC/T/W/157
page 5.
ARTICLE 49
COMMODITY CONFERENCES
Paragraph 1:
1. The New Zealand Delegation proposes the deletion of the word
"primary" From sixth line.
2. The United Kingdom Delegation proposes the following paragraph:
"1, If the Organisation receives recommendations for inter-
governmental action from a Study Group, or if it receives
other information agreed to be adequate by the Members
substantially interested in the production, consumption and
trade of a particular primary commodity of the existence
of special difficulties which are so serious that they ure
unlike to be overcome except by inter-governmental action,
the Organisation shall promptly convone an inter-governmental
conference for the purpose of discussing measures designed
to meet the special difficulties which have been found to
exist."
3. The United States Delegation proposes to replace in the third
lino the word "problems" by "problem".
Paragraph 2:
The United Kingdon Delegation proposes to substitute the
following for the present paragraph 2:
"2. Every Member shall be entitled to attend such a conference,
if it considers that its interest in the production, con-
sumption or trade of the commodity concerned is sufficient
to justify its attendance. Non-Members may be similarly
invited."
ARTICLE 50
RELATIONS WITH INTER-GOVERNMENTAL ORGANIZATIONS
General Note on Article: The United Kingdom Delegation raises for
consideration the transfer of this article to the Section on
Miscellaneous Provisions (i.e. Section D. in its suggested re-
arrangement of the Chapter).
Paragraph 1:
1. The Indian Delegation proposes deletion of the words:
"such as the Food and Agriculture Organization".
The New Zealand Delegatton proposes the following amendment
and re-arrangement of sub-paragraphs (a) and (b)
[(b)]"(a) to ask that a study of a primary commodity be made;"
[(a)]"(b) to submit to the Organization any relevant study of a
primary commodity. Such n submission shall be deemed to conform
to the requirements of Article 48 and may be accepted by the
Organization as a basis for the convening of an Inter-govern-
mental Conforence in terms of Article 49".
3. The Australian Delegation proposes the following amendment of
sub-paragraph (a) :
"(a) to submit to the Organization any relevant study of a
primary commodity, and on the basis thereof, to request
the Organization to convene an inter-governmental
Commodity Conference. " E/PC/T/W/157
page 6.
4. The Netherlands Delegation Proposes the addition of a new
sub-paragraph reading as follows:-
"(c) to ask that an inter-governmental conference be
convened".
The United Kingdom Delegation proposes (See W/137 pages 4
and 5) a complete re-drafting of the Article, in which para-
graph (1) would read as follows:
"1. The Organization may request any competent inter-govern-
mental organization, such as the Food and Agriculture
Organization, to submit to it uny relevant study of a
primary commodity."
Paragraph 2.
1. The Australian Delegation proposes the substitution of the
word ''shall" for the word "may" in the first line of this
paragraph.
2. The Czechoslovak Delegation proposes the following amend-
ment:
"2. The Organization may request [any] competent inter-
governmental organizations [which it deems to be
competent,] to attend or take part in the work of a
Study Group or of a Commodity Conference;"
3. The United Kingdom Delegation proposes to substitute for
this paragraph the two following paragraphs:
"2. The Organization, when it is convening a Commodity
Conference under the provisions or Article 49 may request
any inter-governmental, organization which it deems to be
competent to be represented at the Conference, or to
place expert staff and other assistance at its disposal
on such terms and conditions as may be agreed.
"3. Any Study Group which is set up under the provisions of
Article 48 may request any inter-governmental organi-
zation which it deems to be competent to be represented
at the Study Group and to place expert staff and other
assistance at its disposal on such terms and conditions
as may be agreed."
ARTICLE 51
GENERAL PRINCIPLES OF INTER-GOVERNMENTAL COMMODITY
ARRANGEMENTS
Note: Attention is drawn to the transfer of paragraph 4 of
Article 51 of the Text of the First Session to Article 53 in the
D.C. Report. Reservations on this chance are noted under
Article 53.
Preamble:
No proposals.
Sub-paragraph (a):
The United Kingdom Delegation proposes
"(a) such arrangements shall be open initially to participa-
tion by any Member on terms no less favourable than E/PC/T/W/157.
page 7.
those accorded to any other country and thereafter in
accordance with such procedure and upon such terms as may
be approved by the Organization the existing participants;"
Sub-paragraph (b):
No proposals,
Sub-paragraph (c):
The United States Delegation proposes deletion of the words;
"affording advantages commensurate with obligations accepted by
non-participating Members."
Sub-paragraph ( d):
No proposals.
Sub-paragraph (e):
No proposal.
Sub-paragraph (d):
No proposals.
Sub-paragaph (g):
No proposals.
ARTICLE 52
CIRCUMSTANCES GOVERNING THE USE OF REGUL.ATORY AGREEMENTS
The United States Delegation proposes the addition of a new
paragraph to this Article (see below); in consequence it proposes
the insertion of the number 1 before the preamble.
Sub-paragraph (a):
1. The Children Delegation suggested (D.C. Report, page 40) the
following text or sub-paragraph (a):
"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 significant decrease in the production of
that commodity, would not, in the absence of specific govern-
mental action, be corrected by normal marketing forces alone
in time to prevent serious hardship to producers 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"
2. Attention is drawn to the Drafting Committee's note on the
phrase, "because characteristically, in the case of the primary
commodity concerned, a substantial reduction in price does not lead
to a significant ..." (D.C. Report, page 40), i.e. that it is only
to be considered as a descriptive phrase "and is not to be inter-
preted in the sense a that a substantial reduction in price would be
regarded as a pre-requisite for the adoption or extension of a
regulatory 'agreement."
3. The United States Delegation proposes:
"(a) a burdensome surplus of a primary commodity has developed
or is expected to develop, which in the absence of specific
governmental action, would cause serious naraship to
producer among whom are small producers who account for
a substantial portion of the total output, and thse condi-
tions could not [cannot] be corrected by normal market E/PC/T/W/157 .
page 8.
forces [alone] in time to prevent such hardship because
characteristically, in the case of the primary commodity con-
cerned, a substantial. reduction in price does not readily lead
to a significant increase in consumption nor to a significant
decrease in production; or"
Sub-paragraph (b)
1. The Drafting. Committee's note on the phrase, "because characters
tically.... "; (see note on sub-paragraph (a) above) also refers to
this sub-paragraph.
The United States Delegation proposes the following amendment
"(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, in the absence of specific governmental action
would not be corrected by normal market forces [alone] 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 sig-
nificant increase in consumption but to the 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; or"
Sub-paragraph (c):
1. The Czecheslovak Delegation proposes the substitution of the
word "recommend" for the word establish in the last lino of this
sub-paragraph,
2. The United States Delegation proposes deletion of this sub-
paragraph.
3. The Secretariat points out that this sub-paragraph does not run
on smoothly from the preamble.
Proposed additional sub-paragraphs
1. At the Drafting Committee (see D.C. Report, page 41) the rep-
resentative of the F.A.O. suggested the addition of the following sub-
paragraph after sub-paragraph (b) :
"(e) it is necessary to enable the producers and the govern-
ment concerned to carry forward concerned programmes for the
expansion of aggregate world production and consumption of a
primary commodity or."
The Drafting Committee recognised that the matter was one for
consideration at the present session of the Preparatory Committee,
2. The Czecheslovak Delegation proposes the following new sub-
paragraph
"(d) A shortage of a primary commodity, whether of a short
term or a long term character, which seriously prejudices the
interests of consumers and cannot be remedied by normal market
forces along has developed and it is, therefore, necessary to
raise production and secure an equitable distribution and stable
prices of that commodity." E/PC/T/W/157
page 9.
Proposed new paragraph
The United States Delegation proposes the addition of the
following new paragraph
"2. Determinations under this Article shall be made through
the Organization by consultation among the Members sub-
stantially interested in the commodity concerned."
ARTICLE 53
ADDITIONAL PRINCIPLES GOVERNING REGULATORY AGREEMENTS.
Preamble:
The United States Delegation proposes the substitution of the
word "shall" for the words "undertake to" in the first line.
Sub-paragraph (a).
The United States Delegation proposes the deletion of this
sub-paragraph.
Sub-paragaph (b)
1. The words shown in square brackets will require further con-
sideration. The request mentioned in the D.C. Report (page 41)
that a "reasonable prica" should not be a price which does not cover
the costs of production was made by the Delegate of Chile.
2. The Czechoslovak and Netherlands Delegations both propose the
addition of the words withoutt unfairness to consumers" immediately
after the words in square brackets.
3. The United States Delegation proposes that the sub-paragraph
should end at the word "demand".
4. The United Kingdom Delegation proposes that the sub-paragraph
should be re-worded as follows :
"(b) such agreements shall be designed to assure the availability
of supplies adequate at all times for world demand at equitable
and stable prices."
Sub-paragraph (c):
1. The United Kingdom Delegation reserved its position (D.C.Report,
page 41) regarding the transfer of this sub paragraph from Article 51.
2. The Australian and New Zealand Delegations thought that the
whole text of the sub-paragraph should be within square brackets
because the transfer constituted a substantive change (D.C.Report,
page 41).
3. The United Kingdom Delegation suggested that the words according
to its interests in the circu-istances" and "within one or other
category without altering the equality between the two" should be
put between square brackets (D.C. Report, page 41). E/PC/T/W/157
page 10.
4. The Chilean Delgegation Proposed (D.C. Report, pages
41 and 42) that sub-paragraph (c) should read:
"In such arrangements participating contries,
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 intercsted 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 importing 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."
5. The French Delegation proposes to substitute the
following text for this sub-paragraph
"(c) Under such agreements, participating countries
which are sutstantially interested in the production
or consumption ef or trade in the commodities
involved shall, in determinations relating to
substantive matters, have together a number of
votes equitably proportional to their combined
interests. Distribution of these votes shall be
made in accordance with the precessure established
by each Commodity Conference. If a Conference is
unable to reach agreement on this matter, the
Commodity Commission provided for in Article 72 of
this Charter shall arbitrate."
6. The United States Delegation proposes:
"(c) under such agreements participating countries
which are largely interested in 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]
exports of [markets for] the commodity [ 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 interests in the circumstances, have an appropriate
voice within one or the other category without
altering the equality between the two]" E/PC/T/W/157
page 11.
Sub-paragraph (d):
1. The Netherlands Delegation proposes that this sub-
paragraph should read as follows:
" (d) Such agreements shall encourage consistently
with considerations relevant to the national
economy of each country, shift ts of production to
areas in which the commodities can be most
economically and effectively produced. "
2. The French Delegation proposes that this sub-paragraph
should read as follows:
" (d) Such agreements shall, with due regard to the
need for preventing serious economic and social
dislocation, and to the position of producing areas
which may be suffering grave disabilities, make
appropriate provision to afford increasing
opportunities for satisfying world requirements
from sources from which such requirements can be
supplied in the most effective and economic manner,
the essential interests of efficient producers and
the need to ensure full employment being taken
into account."
Sub-paragraph (e):
The Delegation of the United States proposes:
"(e) participating countries shall formulate and
adopt [a programme] programs of domestic economic
adjustment believed to be adequate to ensure
substantial progress toward solution of the
commodity problem within the time limits of the
agreement." E/PC/T/W/157
page 12.
ARTICLE 54
ADMINISTRATION OF REGULATORY AGREEMENTS
Paragraph 1:
No proposals.
Paragraph 2:
The United States Delegation proposes the insertion of
the word "Power" after the word "voting" in line 5 of this
paragraph.
Paragraph 3:
The United Kingdom Delegation suggests a re-wording as
follows:
"The Organisation may appoint a non-voting representa-
tive to each Commodity Council. Each Commodity Council
may invite any competent inter-governmental organisation
to nominate a non-voting representative to participate
in its work on such terms and conditions as may be agreed".
Paragraph 4:
No proposals.
Paragraph 5:
No proposals.
Paragraph 6:
No proposals.
Paragraph 7.
The Australian Delegation proposes:
"7. Each Commodity Council shall make periodic reports
to the Organisation on the operation of the agreement
which it administers. In addition; it shall make such
special reports as the Organisation may specify or as
the Council itself considers to be of value to the
Organisation. Such reports shall also be made available
immediately to pay whether inter-governmental organisation
having a particular responsibility for, or interest in,
the commodity concerned.
Paragraph 8:
No proposals.
ARTICLE. 55
PROVISION FOR INITIAL TERMS, REVIEW AND RENEWAL OF
REGULATORY AGREEMENTS
The Austral an Delegation proposes:
"[No] Regulatory agreements [/agreement] shall remain in
force for not mere than five years, unless renewed, and
no renewal shall be for a longer period than five years. E/PC/T/W/157
page 13
[Renewal and 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
may shall also] include provision for the withdrawal of any
party. Periodically, at intervals.
of the Commodity Council".
The Australian Delegation also draws attention to some obscurity
in the penultimate sentence, "'moreover ........., terminate it".
ARTICLE 56
SETTLEMENT OF DISPUTES.
The United Kingdom Delegation proposes:
"Any question or difference concerning the interpretation of
the provisions of a regulatory agreement or arising out of
its operation shall be discussed originally by the Commodity
Council. If the question or difference cannot be resolved
by the Council under the terms of the agreement it shall be
referred by the Council to the Commodity Commission for
examination and recommendation to tho Executive Board. The
Executive Board shall then issue a ruling in pursuance of the
provisions of Article 86".
ARTICLE 57
OBLIGATIONS OF MEMBERS REGARDING EXISTING AND PROPOSED
COMMODITY ARRANGEMENTS
No proposals.
ARTICLE 58
GENERAL UNDERTAKING BY MEMBERS.
The United States Delegation suggests deletion of this article.
ARTICLE 59
EXCEPTION TO PROVISIONS RELATING TO INTER-GOVERNMENTAL
COMMODITY ARRANGEMENTS
Sub-paragraph (a):
1. Consequential on its suggested amendment to Article 52, the
Czechoslovak Delegation proposes:
"(a) 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".
(see W/148 page 3).
2. The Drafting Committee was of the opinion that arrangements
relating solely to the equitable distribution of commodities in short
Supply and mentioned in this sub-paragraph should be short tern arrange-
ments of a transitional character (D.C. Report, page 43). E/PC/T/W/157
page 14
The United States Delegation proposes:
"(b) to international fisheries or wild life 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; provided, that such agreements
are not used to accomplish results inconsistent with the
objectives of Chapter VI or Chapter VII: and
Sub-paragraph (c):
The United States Delegation proposes the deletion of
this sub-paragraph.
Proposed new sub-paragraph:
The Indian Delegation proposes the addition of a new sub-
paragraph (d):
"(d) to inter-governmental commodity arrangements relating to
basic foods or feeds concluded under the sponsorship of
the Food and Agriculture Organisation".
ARTICLE 60.
DEFINITIONS.
Paragraph 1:
1. The Norwegian Delegation reserves its position regarding the
inclusion of fishery products in the definition of "primary
commodity". (D.C. Report, p.44).
2. The United States Delegation proposes:
"1. For the purposes of this Chapter, the term "primary
commodity" means any product of farm, forest op 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 closoly related to the
other commodities in the group [that they can conveniently
be dealt with in a single arrangemenl] that it is necessary
to deal with them in a single arrangement".
2. The French Delegation proposes the following paragraph:
"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 E/PC/T/W/157
page 15
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 which are so closely related to the
other commodities in the group that they can conveniently
be considered in a single arrangement, regard being had
to the conditions of production of each".
Paragraph 2:
No proposals.
Paragraph 3:
No proposals. |
GATT Library | nt537zk8811 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Chapter VII. Inter-governmental Commodity Arrangements. Czechoslovak Delegation. Proposals and Comments | United Nations Economic and Social Council, May 31, 1947 | United Nations. Economic and Social Council | 31/05/1947 | official documents | E/PC/T/W/148 and E/PC/T/W/125-150 | https://exhibits.stanford.edu/gatt/catalog/nt537zk8811 | nt537zk8811_90050284.xml | GATT_152 | 789 | 5,167 | UNITED NATIONS NATIONS UNIES RESTRICTED E/PC/T/W/148
ECONOMIC CONSEIL 31 May 1947.
AND ECONOMIQUE
SOCIAL COUNCIL ET SOCIAL
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT.
CHAPTER VII
Inter-governmental Commodity Arrangements
CZECHOSLOVAK DELEGATION
Proposals and Comments.
1. Amendment to Article 47e.
Article 47 (e) should read as follows: "To provide for
an exansion of the production and equitable distribution at
fair prices of a primary commodity which is in such short supply
as seriously to prejudice the interests of consumers.
Comments:
At the first session of the Preparatory Committee the
principle that commodity arrangements should also be applied in
the case of a shortage of a primary commodity was recognized and
a new subparagraph added to Article 47. Such shortages have
persisted even during periods when world market forces have
operated comparatively normally. Tin or mercury have been some
of the commodities which were persistently in such short supply.
The present Czechoslovak Amendment is only an elaboration of the
idea accepted at the London Session. It is logical that for
countries suffering from these shortages it would not be
sufficient to provide only for an expansion of production of a
commodity in short supply. The factor of distribution and price
must be also taken care of.
2. Amendment to paragraph 2 of Article 50.
Paragraph 2 of Article 50 should read as follows:
"The Organization may request competent intergovernmental
organizations to attend or take part in the work of a Study Group
or of a Commodity Conference,"
Comments:
The Czechoslovak Delegation suggests the deletion of the
phrase "which it deems to be competent." The reason for this is
that ITO can be no judge as far as the terms of reference and
competence of other intergovernmental organizations are concerned
and declare them either competent or incompetent. The term of
reference and their competence are fixed in their statutes. If
the terms of reference and. competence of other intergovernmental
organizations are not clearly defined in their statutes, the
ultimate decision should be made by the Economic and Social
.
.
. E/PC/T/W/148
page 2
Council of the United Nations which acts as a supreme body in
economic and social affairs.
3. Amendment to Article 52 (c)
The second sentence of Article 52 (c) should read as
follows : Agreements under this subparagraph shall be governed
not only by the principles set forth in this Charter but also by
any other requirements which the Organization may recommend."
Comments:
The purpose of this amendment is to bring Article 52 (c)
Into line with Article 61 (d) and paragraph 6 of Article 66. In
both these cases the Organization works through recommendations
to Members.
4. Suggested subparagraph (d) to Article 52.
"(d) A shortage of a primary commodity, whether of a
short term or a long term character, which seriously prejudices
the interests of consumers and cannot be remedied by normal market
forces alone, has developed and it is, therefore, necessary to
raise production and secure an equitable distribution and stable
prices of that commodity."
Comments"
As already mentioned in the amendment to Article 47 (e)
the Charter provides for commodity arrangements also in the case
of a shortage of primary commodities which seriously prejudices
the interests of consumers. The Charter thus endeavours to
strike a just balance between the case of a "burdensome surplus"
and the case of a "short supply" of a primary commodity. It is
obvious that shortages and ensuing maldistributions and wide price
fluctuations of a primary commodity cannot be remedied in any
other way but by an international regulation of production,
distribution and prices. Thus, regulatory agreements must cover
also cases of shortages seriously prejucing consumer countries.
For this reason the addition of the above subparagraph is suggested.
5. Amendment to Article 53 (b)
Add after the words [remuneration to efficient producers]
the words "without unfairness to consumers."
The Czechoslovak Delegation at the Session of the
Drafting Committee supported the Cuban amendment to Article
47 (c) and Article 53 (b) which appears in the text of the
D.C. report in square brackets. The suggested amendment intends
merely to bring the text of Article 53 (b) into line with
Article 47 (c). E/PC/T/W/148
page 3
6. Amendment to Article 59 (a)
Delete the words from the word "to" up to the word "or"
in the first sentence. The first sentence of subparagraph (a)
of Article 59 will thus read:
"(a) To those provisions of intergovernmental commodity
arrangements which appropriately relate to the protection of
public morals or the protection of human, animal or plant life
or health."
Comments:
In view of the suggested addition of a new subparagraph
(a) to Article 52 the first sentence of subparagraph (a) of
Article 59 seems superfluous. |
GATT Library | jy457tc7770 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Chapter VII. Inter-governmental Commodity arrangements Observations and Proposals by the U.K. Delegation | United Nations Economic and Social Council, May 30, 1947 | United Nations. Economic and Social Council | 30/05/1947 | official documents | E/PC/T/W/137 and E/PC/T/W/125-150 | https://exhibits.stanford.edu/gatt/catalog/jy457tc7770 | jy457tc7770_90050273.xml | GATT_152 | 2,233 | 14,498 | UNITED NATIONS NATIONS UNIES
ECONOMIC CONSEIL RESTRICTED
AND ECONOMIQUE E/PC/T/W/137
SOCIAL COUNCIL ET SOCIAL 30 May 1947
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS COMMERECE ON TRADE AND EMPLOYMENT.
Chapter VII
Inter-governmental Commodity arrangements
Observations and Proposals by the U.K. Delegation
General Observations
Since the London session of the Preparatory Committee there
have been some important developments in the Commodity Policy
field, both as regards the formation of Study Groups and as regards
the calling of international commodity conferences. The United
Kingdom and the other countries concerned have kept in mind the
existing draft Chapter VII and it is in the light of their ex-
perience in recent months that the following suggestions for
amendment of the draft are now put forward by the United Kingdom
Delegation.
The amendments are designed rather to clarify the existing
provisions than to modify their substance.
Before coming to the text of Chapter VII itself, it is
necessary to point out that the provisions in Chapter V regarding
the subject matter of Chapter VII are not satisfactory in their
present form and it is suggested that a reference to Chapter VII
should be inserted in Article 37 (the General Exceptions Article)
in the following form :-
"(1) undertaken in pursuance of obligations under inter-
governmental commodity arrangements concluded in accordance with
the provisions of Chapter VII".
If this amendment were adopted, clause (d) in Article 25(2)
should be omitted.
Arrangement of Chapter
It is suggested that the Chapter should be arranged in four
Sections :-
Section A. General Considerations Articles 46-47
Section B. Inter-governmental Commodity
Arrangements in general Articles 47A-51
Section C. Inter-governmental Arrangements
involving the Regulation of
Production, Trade and Prices Articles 52-56
Section D. Miscellaneous Provisions Articles 57-60 E/PC/T/W/137.
page 2.
Article 47.
The mention of "arrangements" seems premature in this
Article. The Drafting Committee made a change in the general
arrangement of this Article which had the effect of subordinating
the last five objectives to the first. This is more than a
drafting amendment and the United kingdom Delegation prefer the
original from.
It is suggested that the title of the Article should be :
"Objectives of Inter-governrmental Action in regard to Primary
Commodities" and that the Article should begin :-
"The Members recognise that inter-governmental action in
regard to primary commodities may be required :-
(a) to enable countries ...... purposes of this Cnarter."
(b) - (f), as in (a) - (e) of existing draft.
The U.K. Delegation do not support the addition to
Article 47(c).
The U.K. Delegation proposal the insertion of a new Article
at this point.
Article 47A.
Procedure for Inter-governmental Action in regard to
Primary Commodities
The Members agree to follow the procedure for dealing
with the special difficulties referred to in Article 46
which is prescribed in .rticle 48 to 56 and in the first
place to study any such difficulties in accordance with
the provisions of Article 48.
The Members agree that if the study of a commodity in
the production, consumption or trade of which they are
substantially interested shows that the difficulties are
unlikely to be overcome except by inter-governmental
action, they will participate in an inter-governmental
conference to be called in accordance with Article 49.
Inter-governmental action may take two forms, arrange-
ments not involving either regulation of the production,
export or import of a commodity or regulation of prices,
in which event the provisions of Article 51 apply, and
agreements involving such regulation, in which event the
provisions of Article 51 and also of articles 52 and 53
apply.
Observations
Experience has shown that the Chapter in its present form
is rather difficult to understand; it is suggested that the
addition of this Article after Article 47 would be helpful, as
indicating the logical order of action to be followed when
difficulties relating to primary commodities are encountered.
The following redraft is suggested for Articles 48 and 49. E/PC/T/W/137.
page 3.
Article 48.
Special Commodity Studies
1. (As in existing draft).
2. Unless it resolves that a prima facie case has not been
established, the Organisation shall promptly invite all.
Members to appoint representatives to a Study Group to make
a study of the commodity, if they consider that their
interest in the production, consumption or trade of the
commodity is sufficient to justify their participation in
the Group. Non-Members may also be similarly invited.
3. The Study Group shall promptly investigate the special
difficulties which are considered to exist or expected to
arise regarding the commodity, and shall report to the
Governments represented upon it whether they are so serious
that they are unlikely to be overcome except by inter-
governmental action. If it finds that this is the case,
- it shall recommend to the Governments concerned and the
Organisation what form that inter-governmental action
should take.
Article 49.
Commodity Conferences
1. If the Organisation receives recommendations for inter-
governmental action from a Study Group, or if it receives
other information agreed to be adequate by the Members
substantially interested in the production, consumption
and trade of a particular primary commodity of the existence
of special difficulties which are so serious that they are
unlikely to be overcome except by inter-governnental action,
the Organisation shall promptly convene an inter-governmental,
conference for the purpose of discussing measures designed
to meet the special difficulties which have been found to
exist.
2. Every Member shall be entitled to attend such a con-
ference, if it considers that its interest in the production,
consumption or trade of the commodity concerned is sufficient
to justify its attendance. Non-Memburs may be similarly
invited.
Reasons for proposed re-draft.
1. Articles 48 (2) and 49 (2). Experience in connection with
the preparation of invitations for the recent International Wheat
Conference and for the forthcoming meeting of the enlarged Rubber
Study Group showed that the inviting Governments did not feel that
they themselves could determine what countries were sufficiently
interested in wheat and rubber respectively to be entitled to an
invitation. It is therefore considered that invitations should
be issued on the widest possible basis, and that countries them-
selves should be left to determine whether they are sufficiently
interested to attend. E/PC/T/W/137
page 4
2. Article 48 (3) Experience in the case of the Rubher
and Tin Study Grours has shown that, even when there has been
sufficient reason to "oresee difficulties to justify the
establishment of a Study Group, the Group, when it comes to
study the matter, does not immediately find that those
difficulties are so imminent that it is possible to determine
their character and find the solution to them. For this
purpose a fairly prolonged period of study is necessary. In
these circumstances the present text is not realistic, and it
is considered that, if, as must be assumed, all the Governments
concerned are participating in the Study Group; they can safely
be left to carry on the study in whatever way they find
convenient, and that the matter need not be brought back to the
Organisation until action under Article 49 is thought to be
required. The tendency of the Charter should be to encourage
the establishment of Study Groups even before they are strictly
speaking required, rather than to discourage action until a crisis
is imminent.
3. Article 49 (1). It is considered that the conditions
precedent to the convening of a Commodity Conference are set out
more clearly in the revised Draft than in the original. The
conclusion that difficulties in regard to a particular oommodity
are so serious that they can be cured only by inter-governmental
action is likely as a general rule to emerge from the discussions
of a Study Group or may be reached by some other road: but it is
unlikely that a Commodity Conference, if convened, will be a
success unless there is pretty general agreement beforehand
between the Governments concerned that inter-governmental action
is required.
Article 50
It is suggested that this Article should be redrafted as
follows :- It is for consideration whether it should not be
transferred to Section D of the Charter, the relevant part of
Article 54 being transferred to it.
1. The Organization may request any competent inter-
governmental organisation, such as the Food and
Agriculture Organization, to submit to it any relevant
study of a primary commodity.
2. The Organisation, when it is convening a Commodity
Conference under the provisions of Article 49 may request
any Inter-governmental organisation which it deems to be
competent to be represented at the Conference, or to place
expert staff and other assistance at its disposal, on such
terms and conditions as may be agreed.
3. Any Study Group which is set un under the provisions
of Article 48 may-request any inter-governmental organisation
which it deems to be competent to be represented at the
Study Group and to place expert staff and other assistance
at its disposal on such terms and conditions as may be
agreed. E/PC/T/W/137
page 5
Reasons for proposed re-draft.
It is considered that the initiative in these matters
should rest with the countries principally interested in
particular commodities, operating through the Organisation in
the first instance, and, after a Study Group has been set up,
through the latter body.
Article 51 (a).
The question of subsequent accession to commodity
agreements was discussed at some length at the recent
International Wheat Conference, and the view was there strongly
taken that only the countries already represented on the proposed
International Wheat Council were in a position to judge what
would be the appropriate terms for such-subsequent accession.
This view is likely to be shared by any other Commodity
Conference; and it is therefore suggested that the last line
of Article 51 (a) should be amended as follows :-
"and there after in accordance with such procedure and upon
such terms as may be approved by the Organisation the
existing participants."
Article 53 (b).
It is suggested that a fair compromise between the two
opinions represented by the present two alternative texts would
be to borrow part of the wording of Article 1 of the draft
Agreement which emerged from the.International Wheat Conference:-
"The objectives of this Agreement are to assure supplies
of wheat to importing countries and to assure markets to
exporting countries at equitable and stable prices."
and to reword this paragraph as follows
"(b) such agreements shall be designed to assure the
availability of supplies adequate at all times for
world demand at equitable and stable prices."
Article 54 (3)
It is for consideration whether the right to appoint
members from other inter-governmental organisations to Commodity
Councils should be arrogated to itself by the Organisation; it
is suggested that it would be more apropriate to give the right
to the Commodity Councils themselves, since they will be in a
better position than the Organisation to decide whether such
participation would be useful, and on what conditions it should
be invited.
It is therefore suggested that the paragraph should be
reworded as follows :-
"The Organisation may appoint a non-voting representative
to each Commodity Council. Each Commodity Council may invite
any competent inter-governmental organisation to nominate a non-
voting representative to participate in its work on such term and
conditions as may be agreed." E/PC/T/W/137
page 6
Article 56.
In the light of discussions during the recent International
Wheat Conference it is probable that regulatory agreements will
contain much about the settlement of disputes; and in general it
seems essential that the individual commodity Council should be
free to try to resolve all differences under its own arrangements.
There may well be cases, however, where the Council is unable to
resolve differences and some provision is needed in Chapter VII
to cover such cases. It is perhaps useful to quote here the
relevant paragraph (Article XVI (3)) in the draft Wheat Agreement
which, it will be observed, does not provide any right of appeal:-
"Any dispute arising out of the interpretation of this
Agreement or regarding an alleged breach of its provisions, shall
be referred to the Council. The Council may appoint a committee
to ascertain and report on the facts of such a dispute. The
Council shall on the evidence before it, including the findings of
any committee so appointed, give a ruling on the dispute, but no
contracting Government shall be found to have committed a breach
of this Agreement except by a majority of two-thirds of the votes
held by the exporting countries and of two-thirds of the votes
held by the importing countries."
The one kind of dispute for which some outside tribunal is
likely to be desired by both importers and exporters is a dispute
between the two sides of the Council, but both sides will, no
doubt, be anxious to ensure that any other body to which the
dispute is referred has a similar kind of balance between importer
and exporter interests.
It is suggested that the following amendment would clarify
the position:-
"Any question or difference concerning the interpretation
of the provisions of a regulatory agreement or arising out
of its operation shall be discussed originally by the
Commodity Council. If the question or difference cannot
be resolved by the Council under the terms of the agreement
it shall be referred by the Council to the Commodity
Commission for examination and recommendation to the
Executive Board. The Executive Board shall then issue a
ruling in pursuance of the provisions of Article 86." |
GATT Library | fr672fc4486 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Chapter VII. Intergovernmental commodity arrangements. Proposals submitted by the French Delegation | United Nations Economic and Social Council, June 3, 1947 | United Nations. Economic and Social Council | 03/06/1947 | official documents | E/PC/T/W/156 and E/PC/T/W/151-176 | https://exhibits.stanford.edu/gatt/catalog/fr672fc4486 | fr672fc4486_90050292.xml | GATT_152 | 421 | 2,950 | UNITED NATIONS NATIONS UNIES
RESTRICTED
ECONOMIC CONSEIL E/PC/T/W/156
AND ECONOMIQUE 3 June 1947
SOCIAL COUNCIL ET SOCIAL ORIGINAL: FRENCH
Second Session of the Preparatory Committee of the
United Nations Conference on Trade and Employment.
Chapter VII
INTERGOVERNMENTAL COMMODITY ARRANGEMENTS
Proposals submitted by the French
Delegation.
The French Delegation considers it desirable to
mention in the Preparatory Committee's Report, thet
the Economic and "Social Council should study the
question whether a division of competence should not
he made as between the Food and Agriculture Organization
on the one hand, and the International Trade Organization
on the other hand, in connection with the formulation
and application of inter-governmental commodity
arrangements.
Amendment to Article 53 (c)
For the Drafting Committee's wording substitute the following
c) Under such agreements, participating countries
which are substantially interested in the production or
consumption of, or trade in, the commodities involved shall,
in determinations relating to substantive matters , have
together a number of votes equitably proportional to their
combined interests. Distribution of these votes shall be
made in accordance with the procedure established by each
Commodity Conference. If a Conference is unable to reach
agreement on this matter, the Commodity Commission provided
for in Article 72 of this Charter shall arbitrate.
Amendment to Article 53(d)
For the Drefting Committee's wording, substitute the following
d) "Such agreements shall, with due regard to the
need for preventing serious economic and social dislocation,
and to the position of producing areas which may be
P.T.O.
.
NATIONS UNI ES E/PC/T/W/156
page 2
suffering grave disabilities, make appropriate provision
to afford increasing opportunities for satisfying world
requirements from sources from which sach requirements cen
be supplied in the most effective and economic manner, the
essential. interests of efficient producers and the need
to ensure full employment being taken into account."
Amendment to Article 60
It is proposed that this article should be amended
as follows:
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 proparation for export. The torm may also
cover a group of commodities, of which one is a primary
commodity as defined above and the others are commodities
which are so closely relatod to the other commodities in,
the group that they can conveniently be considered in a
single arrangement, regarding being had to the conditions
of production of each. |
GATT Library | km731hv1141 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Chapter VII. New Article 57 A proposed by Netherlands Delegation | United Nations Economic and Social Council, June 19, 1947 | United Nations. Economic and Social Council | 19/06/1947 | official documents | E/PC/T/W/207 and E/PC/T/W/177-207 | https://exhibits.stanford.edu/gatt/catalog/km731hv1141 | km731hv1141_90050352.xml | GATT_152 | 640 | 4,142 | UNITED NATIONS
ECONOMIC CONSEIL E/PC/T/W/207
AND ECONOMIQUE 19 June, 1947
SOCIAL COUNCIL ET SOCIAL ORIGINAL: ENGLISH
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT.
CHAPTER VII
NEW ARTICLE 57 A PROPOSED BY NETHERLANDS DELEGATION
1. The general procedure of this Chapter shall be followed,
where appropriate in view of the multilateral aspects of
the special difficulties which are considered to have
arisen or are likely to arise, when in the case of any
primary commodity Members enter into consultation or nego-
tiations about
a. subsidizations as referred to in article 30 (4);
b. the maxi.-num price margin on the importation or
exportation as referred to in article 32;
c. import restrictions as referred to in article 25 (2,e);
d. the use or level of antidumping or countervailing
duties as referred to in article 17; or
e. any other proposed , maintained or authorised exemption
from the general rules of commercial policy, as
allowed in Chapter V.
2. These consultations or negotiations may include non-Members,
after invitation by the Organization upon the request of a
lIember or a group of Members.
3. Any arrangement or agreement, resulting from this Article may
be deemed by the Organization to be of a non regulatory
character, if the circumstances are such that no Commodity
Council is necessary to provide fcr frequent consultation
among participants.
Comment
It became clear from the discussions in commission B and in the
subcommission that there is need for a clear and definite state-
ment that
a. the exemptions from Chapter VL allowed in article 37 (1), as
proposed by the the U.K.delegation must be based upon the special
P.T.O.
NATIONS UNIES
RESSTRICTED E/PC/T/W/207
page 2
difficulties in the trade in primary commodities and especially
the multilateral character of these difficulties.
b.though in article (30) an explicit statement is made that these
consultations should follow tho procedure oe chapter VII, such
is not the case in article 32 howeverr not proposed by the
Netharlands delegation), nor in article 25 (e), was in article
17 (the rather negetive way, it is stated in article17 par.6
seems not to be sufficient). Moreover, even tariffs, preferences,
special prices, marks of origin, mixin- requirements and other
consultation and recommendation under chapter V could in many
cases, in respect to a primary commodity follow the procedure
of a study, or a conference, resulting in an arrangement or an
agreement.
c. It is not the intention of the delegation to widen the scope
of the exemptions under chapter V, but to restrict the necessity
to overburden chapter V with cross references to chapter VII. If
this propose new article is adopted, the Netherlands delegation
would be glad to have it considered to have as few as possible
specific exemptions and show the wy to appropriate multilateral
consultation and negotiations in the case of primary commodities
under chapter VII.
d. it seems to be necessary to provide for the possible inclusion
of non Members in such negotiation, but in this case the invita-
tion ought to be more qualified than wus the case in chapter VII
as a whole.
e. it seems unnecessary to follow in all cases the strict rule of
article 54 that conventions, which for instance regulation the
use and level of subsidizations, countervailing duties, seasonal
export- or import restrictions, maximum margin in a state trading
agency and other determinations for a given period of one or two
years, should provide for a governing body.
Tha delegation believes that if it is generally known that
the provisions of chapter V in connection with chapter VII allow
a continuous multilateral consultation and co-operation of Members
in order to iron out the special difficulties oe international
trade in primary, primarily agricultural products, this might
wall allow a broader drafting of the whole or chapter V.
Geneva, June 17th, 1947. |
GATT Library | br572sx7658 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Chapter VII. Note by the Cuban Delegation | United Nations Economic and Social Council, August 7, 1947 | United Nations. Economic and Social Council | 07/08/1947 | official documents | E/PC/T/W/265 and E/PC/T/W/261-306 | https://exhibits.stanford.edu/gatt/catalog/br572sx7658 | br572sx7658_90050417.xml | GATT_152 | 311 | 2,063 | RESTRICTED
ECONOMIC CONSEIL E/PC/T/W/265
AND ECONOMIQUE 7 August 1947
-SOCIAL COUNCIL ET SOCIAL ORIGINAL: ENGLISH
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT.
CHAPTER VII
NOte by the Cuban Delegation
In connection with the Report of the Legal Drafting
Committee on Chapter VII (E/PC/T/147), the Cuban Delegation
submits the following proposal regarding an explanatory note
on the final text of Article 54:
The Cuban Delegation draws attention to the fact that
in the report of the Sub-Committee on Chapter VII (E/PC/T/W/228),
the following note was inserted to Article 54 (then Article 55):
"In sub-paragraph (b) it was agreed to exclude the words
shown in square rackets in the New York text in view of the
new text of Article 48(c) (New York 47(c)). It is recognized
that the term "reasonable" as applying to prices in sub-
paragraph (b) is to be interpreted as in Article 48(c)."
This note was due to the declaration of the Cuban
Delegation that it could accept the new wording only in case
the aforementioned interpretation was assured. This
-interpretation was unanimously accepted at the same time as
that contained in the following the concerning the voting
method for commodity control agreements, Novertheless the
first note was not taken over in the text of the Charter.
The Legal Drafting Committee in its report mentions this fact.
The Cuban Delegation proposes that the substance of
the Sub-Comnittee's note be added as an explanatory note,
reading as follows, to the final text of Article 54(a):
"It is recognized that the term "reasonable" as applying
to prices in sub-paragraph (a) is to be interpreted as in
Article 48(c)."
If this is done, the Cuban Delegation will be able to
maintain their acceptance of the actual wording of Article 54(a)
which was conditioned by the insertion of the interpretative
note.
UNITED NATIONS
NATIONS UNIES |
GATT Library | zm614pf8405 | Second Session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Chapter VII. Note by the Secretariat to Members of Commission B | United Nations Economic and Social Council, July 3, 1947 | United Nations. Economic and Social Council | 03/07/1947 | official documents | E/PC/T/115 and E/PC/T/106-124 | https://exhibits.stanford.edu/gatt/catalog/zm614pf8405 | zm614pf8405_92290138.xml | GATT_152 | 238 | 1,657 | ECONOMIC CONSEIL 3 July 1947
AND ECONOMIQUE .
SOCIAL COUNCIL ET SOCIAL ORIGINAL: ENGLISH
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT.
CHAPTER VII
NOTE BY THE SECRETARIAT TO MEMBERS OF
COMMISSION B.
1. In accordance with the decision of Commission B, the
delegates of the United Kingdom and the United States, as
those mainly interested in Article 49 (N.Y. 58), have met
to seek a compromise which would be satisfactory to all
countries concerned. The following text Isiacceptable to
both the United Kingdom and the United States delegates,
who feel that its most appropriate and.logical place in
the Chapter would be as a new paragraph (2) of Article 52.
It is felt that a general undertaking of this character
should naturally apply to all types of inter-governmental
commodity agreements.
2. ARTICLE 52
Suggested new paragraph:
"2. 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."
3. The Secretariat .will be grateful if all Members of
Commission B will inform them in writing before July 5
whether or not this new text, as proposed for inclusion
in Article 52, is acceptable to them. If all Members
signify their approval, it will be unnecessary to call a
further meeting of the Commission to consider this one point.
RESTRICTED
UNITED NATIONS
NATIONS UNIES |
GATT Library | wb433dq8461 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Chapter VII. Note by the United States Delegation | United Nations Economic and Social Council, August 6, 1947 | United Nations. Economic and Social Council | 06/08/1947 | official documents | E/PC/T/W/1947 and E/PC/T/W/261-306 | https://exhibits.stanford.edu/gatt/catalog/wb433dq8461 | wb433dq8461_90050413.xml | GATT_152 | 283 | 1,814 | UNITED NATIONS
UNITED NATIONS NATIONS UNIES Restrictde
ECONOMIC CONSEIL E/PC/T/W/1947
AND ECONOMIQUE
SOCIAL COUNCIL ET SOCIAL ORIGINAL: ENGLISH
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
CHAPTER VII
Note by the United States Delegation
In connection with the Report of the Legal Drafting Com-
mittee on Chapter VII, (E/PC/T/147), the United States Delegation
submits the following proposal for an explanatory note to be
appended to the final text or Articles 49 and 50:
In connection with the Report of the Legal Drafting Com-
mittee on Chapter VII, the point has been brought up that the
use of identical language in paragraph 2 of Article 49 and in
paragraph 2 of Article 50, regarding the interests of a Member
invited to participate in a study group and a commodity con-
ference, respectively, can result in a situation not intended in
the drafting of Chapter VII. A Member may feel obliged to accept
the invitation to a study group in order to preserve its right to
bo invited to the subsequent commodity conference. Failure to
accept the former invitation might be construed as a decision
that a Member does not consider that it has a substantial interest
in the production or consumption of, or trade in, the commodity.
In order to avoid this interpretation it is suggested that
a footnote might appear to Articles 49 and 50 in about the
following terms:
"It is the intention that the decision of a Member not
to accept an invitation to join a study group dealing
with a commodity would in any way prejudice the
Member's right to be invited to participate in a
commodity conference for the commodity in question." |
GATT Library | qf821sx9194 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Chapter VII (Orginization). Annotated Agenda | United Nations Economic and Social Council, June 20, 1947 | United Nations. Economic and Social Council | 20/06/1947 | official documents | E/PC/T/W/20 and E/PC/T/W/208-220 | https://exhibits.stanford.edu/gatt/catalog/qf821sx9194 | qf821sx9194_90050355.xml | GATT_152 | 8,169 | 52,419 | UNITED NATIONS
ECONOMIC CONSEIL E/PC/T/W/20
AND ECONOMIQUE 20 June 1947
SOCIAL COUNCIL ET SOCIAL ORIGINAL:ENGLISH
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT.
CHAPTER VII (ORGINIZATION)
ANNOTATED AGENDA
Introduction
1. This agenda is to be read in conjunction with the Report of, the Drafting
Committee which... hereinafter referred to as "D.C. Report."
2. It incorporates the reservations and comments made by delegations and
recorded in the D.C. Report and all proposals and other comments presented
by delegations up to 1800 hours on Friday, 20 June, 1947 together with comments
and suggestions submitted by the Seoretariat. Underlining indicates additions
to, square brackets deletions from the text of the DC Report.
3. The following papers containing the proposals and comments made by delega-
tions which are incorporated in this agenda have already boon circulated:-
Australian Delegation E/PC/T/W/203
Cuban Delegation E/PC/T/W/172
French Delegation E/PC/T/W/205
New Zealand Delegation E/PC/T/W/206
United Kingdom Delegation E/PC/T/W/161 and W/202
X United States Delegation E/PC/T/W/204.
Amendments. Comments and Suggestions
Article 61 - Functions
Sub-paragraph (b)
1. It is suggestod by the Secretariat that this function might be made
more positive by amonding "to facilitate" to "to develop and facilitate."
2. "The Chartor" at the conclusion of this sub-paragraph should, it is
submitted by the Secrotariat, read "this Chartor."
x The United States Delegation, apart from the comments and amendments
contained in this agenda, intends to submit suggestions with regard to an
appropriate arrangement of the Articles now containod in Chapter VIII and
certain other material which although not strictly concerned with Chapter
VIII, being rather material for insertion in a new Chapter IX, has an
effect upon Chapter VIII and may be treated in connection therewith.
NATIONS UNIES
RESTRICTED Page 2
Sub-paragraph (c)
The United States Delegation proposes the following amendments which
it states are largely consequent upon the amendments already suggested
by the United States Delegation in regard to Chapter IV (Document E/PC/T/
W/125) and are intended to make the article more general and inclusive.
"(c) To make studies end recommendations for, and promote in-
ternational agreement on, measures designed to expand the volume
end improve the bases of international trade and generally to accom-
plish any of the purposes of the Charter;(a) including measures to
facilitate commercial arbitration and the avoidance of double taxa-
tion, and to assure just and equitable treatment for foreign nationals
(b)
and enterrises. [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 ol
foreign national and enterprises, on the treatment of commercial
travellers, of commercial arbitration and on the avoidance of double
taxation] "
(a) There does not seem to be any reason to confine the work of the
organization in developing international conventions to any scope
less than the full field of the Charter,
(b) This broad provision is intended to cover many types of questions
such as the treatment of commercial travellers, discrimination
egainst foreign creditors in bankruptcy, insolvency or reorganiza-
tion, etc.
Sub-paragraph (d)
For the reason set out above in the introduction to its amendment to
sub-paragraph (c) the United States Delegation proposes the following
amendment to the last phrase of this sub-paragraph:- Page 3
".... and to perform any other function necessary and proper
to carrying out the 'appropriate to the purposes and] provisions
of this Charter."
Sub-paragraph (e)
1. The Australian Delegation proposes to make this sub-pararraph read
es follows, the existing wording becoming a new sub-paragraph (f):-
"(e) In exceptional. circumstances to waive obligations of
-Members undertaken pursuant to this Charter;"
2. This suggestion is linked up with the Australian Delegation' a pro-
posal to amend paragraph 3 of Article 66 to read "The Conference may
[ by the affirmative votes of two-thirds of the Members of the Organi-
zation. deternine criteria and jet up] establish procedures, including
voting procedures, for waiving, in exceptional, circumstances, obliga-
tions of Members undertaken pursuant to this Charter for the making of
decisions under sub-paragraph (e) of Article 61.`
3. The explanation given for these that amendments is as follows:-
The affect of paragraph 3 of Article 66 is that, apart from the cases
provided for elsewher in the Charter, no waiver of obligations is pos-
sible unless the Conference determines criteria and sets up procedures.
Moreover, these acts require a two-thirds affirmative vote of all the
Members of the Organization.
It is the view of the Australian Delegation that there may be cases
where special procedures with a special majority vote are not required,
and that in such cases, the ordinary rules oi procedure of the respective
organg of the Organization would suifice. It is therefore suggested that
the Conference should be free to determine whether or not particular
classes of questions relating to release from obligation do or do not
require the determination of criteria and the establishment of special
procedures. Moreover, the Australien Delegation believes it unwise to
require that two-thirds of the whole membership should be required to
give their affirmetive-vote in a decision of this kind. The voting Page 4
requirement in paragraph 3 of Article 66 removes the right of Members
to adopt a neutral. position by abstaining from voting, because a
failure to vote for a proposal automatically becomes a vote against
it.
The Australien Delegation proposes that the substantial power
to release Members from obligations in exceptional circumstances
should be stated as a general power of the Origanization (not of the
Conference) and placed in article 61.
The question as to which organ of the Organization shall exercise
the power may then be covered in Article 66, paragraph 3. It is sug-
gestad that it should be left permissive for the Conference to deter-
mine criteria and procedures, including voting procedures, This method
of presentation has the following effects:-
(a) the Conference can study the categories of cases which
it may expect to come before it and decide whether or
not special criteria and procedures are necessary;
(b) elasticity in respect of voting is retained. The revised
Article .61( e) permits release from-obligations by simple
majority, but the Conference could decide (again by simple
majority) that a particular, category of Issues should re-
quire decision by a different kind of majority. There if
an analogy in the United Nations Charter in Article 18(3)
where the General Assembly may decide by simple majority
what additional categories of questions should be decided
by two-thirds majority;
(c) the Conference is laft free to decide whether or not de-
cisions to release Members from particular obligations
may be taken by organs other than the Conference. It
might be argued thet the present drafting of Article 66(3)
does not permit this because of the language of Article 66!2). Page 5
4. The Secretariet doubts whether the present sub-paragraph (o) is
necessary. Article 61 should deal only with functions not provided
for elsewhere in the Charter and Article 8 when read with Article 1
would seem to cover adequately the function of co-operation with the
United Nr.tions and other inter-governmental organizations for the at-
tainment of the purposes stated. In any event it would appear that the
lest phrase of tho sub-paragraph should be amended to rend "and the
[restoration and] maintenance of international peace and security" to
confer with the wording of the purposes of the United Natious,
Article 62-- Structure
The United Kingdom Delegation, in view of the tact that the Tariff
Committee has been converted from an interim to a permanent organ, sug.
gests the following amendment:-
"The Orgenization shell have as its principal organs a Con-
ference, an Executive Board, a Tariff Committee, Commission as
established under Article 72 and a Secratariat."
Article 63 -- Conference of
tc Conference
Paragraph 1
It is submitted by the Sccreterist that this paragraph might pas-
sibly follow the Charter of the United Nations and be amended as fol-
lows:- "The Conference shall consist of all the [representatives of the]
Members of the Organization."
Paragraph 2-
The matter of alternates and advisers being thought rather one to
be covered by rules of procedure and following the-Charter of the
United Nations, the Sacretariat suggests that this paragraph might be
amended to read "Each Member shall have be represented in the Con-
ference by one representative and may appoint alternates and ad-
visers to its representative to the Conference] Page 6
Article 64 -- Voting
General Comments
1. The Drafting Committee was instructed to formulate alternative
schemes as regards voting taking account of suggestions concerning
weighted voting end permanent membership of the Exeuctive Board, The
Drafting Committee did not reach any final conclusions on weighted
voting. Attention is drawn to the Report of the Administrative Sub-
Committee commencing on page 53 of the D.C. Report.
2. The delegate who submitted a formula on weighted voting and a
note on two-thirds majorit (General Comment (c) to Article 64 in
D.C. Report) was the United Kingdom Delegate.
3. The delegate who directed attention to the discrepancy in voting
procedure that whereas the Charter calls for a two-thirds vote on pro-
cedural questions such as in paragraph 3 of Article 66 the most impor
tent decisions on substance are the subject of a simple majority vote
end reserved his position on this question (General Comment (d) in
D.C. Report) was the French Delegate.
4. The United States Delegation suggests that consideration of this
article, together with the related Articles 66(5), 68 and 69 be post-
poned until work on the substantive questions of the Charter has been
substantially completed. At the time it will be appropriate to con-
sider the Report of tho Administrative Sub-Committee of the Drafting
Committee.
Specific Comments and Amendments
1. The United Kingdom Delegation maintaining the proposal for
weighted voting made at the Drafting Committee and the formula it then
proposed for this purpose (see Appendix I, Page 55 of D.C. Report -- a
specimen working-out of the results appears in Appendix II, Page 56)
suggests the following amendments. The annex referred to in the amended
article would contain the formula mentioned. Page 7
"1. Each Member shall have /one vote] in the Conference
the number of votes allocated to it in oursuance of the pro-
visions of Annex . . to this Charter.
"2. Except as [may ] otherwise provided [for ] in this
Charter, decisions of the Conference shall be taken by a simple
majority of the /Members present and voting votes cast."
2. The United Kingdom Delegation considers that the question whether
two-thirds majorities should be provided for in the case of certain
-specific questions arising under the Charter, additional to those for
which such provision is already made, will need to be considered. The
United Kingdom Delegation's interim proposals and comments on this sub-
ject appear in Appendix XII, page 65 of DC. Report.
3. The United Kingdom Delegation comments that it will be necessary
in making the Rules of Procedure for the Conference to decide how ab-
stentions are to be treated in relation to voting.
Article 66 -- Powers and Duties of the
Conference
General Comments
1. The two delegates who suggested that paragraph 2 of this article
include a catalogue of those powers which may not be delegated by the
Conference to the Executive Board (comment upon paragraph 2 in D.C.
Report) were the Australian and French Delegates.
2. The delegate who suggested that the sentence "No one Member shall
be required to pay more than one third of the total expenses of the Or-
ganization for any given budgetary period' should be added to paragraph
7 (comment upon paragraph 7 in D.C. Report) was the United States Dele-
gate. The delegates who agreed with the principle of this amendment
were those of Canada, South Africa and the United Kingdom while the
delegates who considered that no rigid maximum should be laid down in
the Charter for the contribution of any Member were those of Australia,
China and Cuba. Page 8
Specific Comments and Amendments
Paragraph
1. "The Secretariat suggests that paragraph 2 be amended as follows
"The Conference may delegate to the Executive Board authority to exer-
cise any of the powers or perform any of the duties of the Organization
except such [specific] powers and duties es are expressly conferred or
imposed [upon the Conference under] by this Charter."
2. The reason for this suggestion can be seen by exemining the his-
tory of paragraph 2 of Article 66 in the draft produced at the First
Session. The Confercrnce wes therein authorized to delegate to the Ex-
ecutive Board any of the powers, etc. of the Confercnce, not of the
Organization, except such powers, etc. expressly conferred upon the Con-
ference. This, however, did not make sense for the only powers, etc.
of the Confererce were those expressly conferred. Hence the Drafting
Committee changed the phrase to refer to the delegation of the powers,
etc of the Organization. But this would appear to go too far for the
Conference is only one of the principal organs each of which is given
by the Charter functions to be exercised in behalf of the Organization.
The Conference should not be empowered in Article 66, it would seem, to
transfer such functions, etc. from, for example, the Tariff Committee
to the Executive Board. The only proper wa to do this would be by
Article 85 (Amendments to the Charter).
Paragraph 3
1. For the reason previously set out in paragraph 3 of the- comment
upon Article 61(e) the Australian, Delegation proposes to amend this
paragraph as follows.
"The Conference may, by the affrimative votes of two-thirds
of the Members of the Organization ] determine criteria and [set
up] establish procedures, in cluding voting procedures, for [wai-
ving, in exceptional circumstances, obligations of Members under-
taken pursuant to this Charter for the working of decisions under
sub-paragraph (e) of Article 61 Page 9
2. The United States Delegation, in order to make it clear that
voting requirements as well as other procedures are covered, proposes
the following amendment :-
"3. The Conference may, by the a imative votes of two-.
thirds or the Members or the Organization, determine criteria
and set up requirements and procedures [ including voting pro-
cedures ] for waiving, in exceptionally circumstances, obligations
of Members undertaken pursuant to this Charter."
Paragraph 4
The United States Delegation, in view of the fact that it has al-
ready suggested amendments to Article 30 and 52 covering, the substance
of this paragraph, suggests that it be omitted.
1. The United States Delegation suggests than consideration of this
paragraph be deferred -- see General Comment 4 on Article 64,
- 2. The Secretariat points out that "French 2 of Article 34' at th e
conclusion of this pargarpah should read "paragraph 5 of Article 34."
Paragraph 6
In view of the fact that as this paragraph is et present draft the
time-limit specified by the Conference might be interpreted as not ap-
plying to the forwarding of a statement of the rèasons for non-
acceptance, the Secretariat suggests the following; redraft of the
second sentence-
'"Each Member shall within a period specified by the Confer-
ence, notify the Director-General of the acceptance or [in the
case of ] non-acceptance [shall ]. In the case of non-
acceptance a statement of the reasons therefore shall be forwar-
ded with the notification."
Paragraph 7
The United States Delegation suggests the following amendment:- -
"7. The Conference shall approve the budget of the Organiza-
tion, and ball apportion the expenditure of the Organization Page 10
among the Members, provided that no Member shall be required to
contribute more than one-third of the total of such expenditure
without its content."
Article 67 -- Tariff Committeo
Paragraph 2
The Secretariat suggests that the use of the phrase "which have made
effective" might be reconsidered. It might possibly be argued that such
Members comprise only those whose acceptance to the Agreement wrere de-
posited when it came into force and not those who accepted it subsequent-
ly but before the establishment of the Organization. If this interpre-
tetion is thought possible the phrase might be reworded to read "which
were parties to."
Paregraph
The United Kingdom. Delegation proposes the following emendment:-
"3 . Each member of the Committee shall have [one vote] in
the Committee the number of votes allocated in accordance with
Article 64, paragraph 1, to the Member of the Organization which
he represenist"
Paragraph 4
1. The United Kingdom Delegation proposes the following amendment:-
"4. Decisions of the Committee pursuant to paragraphs 1 and
2 of this article shall be taken be a two-thirds majority of [is t
members the votes cast, and other decisions by a simple majority
of such votes, "
2. The Secretariat points out that if the United Kingdom amendment is
not adopted, it will be necessary to add tho words "present and voting"
to the end of the present text,
Article 68 -- Membership of the Executive
Board
General Comments
1. Attention is drawn to the Report of the Administrative Sub-Committee
of the Drafting Committee which begins upon page 53 of the D.C. Report Page 11
and which the Drafting Committee recommended to the Second Session
es a working document.
2. The United States Delegation suggests that consideration of this
article be deferred -- see General Comment 4 on Article 64.
Specific Comments and Amendments
1. The United Kingdom Delegation proposes that the present text of
article 68 be replaced by the following:-
"1. The Executive Board shall consist of 17 Members, including
the 8 Members of chief economic importance. The Conference
excluding those 8 Members, shall elect the 9 additional Mem-
bers of the Board for terms f three years, subject to the
provisions of paragraph 4. Elective members of the Board
shall not be eligible for immediate re-election.
"2. The Confrence shall annually determine which are the Mem-
bers of chief economic importance on the, basis oi a system
of rating according to the following schedule:-
1 point per 50 million U.S. dollars of external trade;
1 point per 500 million U.S. dollars of national income;
1 point per 10 million of population;
1 point per 10 per cent of external trade expressed as a
percentage of national income.
"3. For the purposes of paragraph 2, points shall be based on
the relevant statistics for the average of the three full
calendar years immediately preceding each annual determina-
tion. The first deteimination of ratings shall be based
upon the average of the statistics for 1937 and the calen-
dar year immediately preceding the entry into force of the
Charter.
"4. At the first election of the Borrd, 3 of the Members shall
be elected for a term of one year, and 3 others for e term
of two years. Page 12
"5. The status of all Members on the Board shall be equal in
all respects.
"6. Each Member of the Executive Board shall have one represen-
tative and may appoint alternates and advisers to its
representative. "
2. As regards paragraph 2 of its new text, the United Kingdom Delegation
points out that the basis proposed for the determination of rating or
economic importance is the same as that it proposed under Article-64,
for the weighting or votes in the Conference, except that the 'basic vote'
is for this purpose omitted as motiveless
Paragraph 1
1. The Australian Delegation points out that the text of Article 68
provides for fitteen members of the Exeuctive Board while alternative
B in Part II of the Report of the Administrntive Sub-Committee envisages
up to eighteen members on certain assumptions about the number of Members
of the Organization, and assuming a particular method of selecting em-
bers or the Board. The Australien Delegation suggests that the Prepare-
tory Committee might consider whather the Executive BoRrd should contain
a larger number then fifteen members in the event that a system or
simple election for all members is agreed upon for incorporation in the
Charter. As a basis for discussion, the Australian Delegation would
propose eighteen. The Australian Delegation suggests also that the
type of majority vote required for the election of members of the Board
should be examined.
2. The New Zealand .Delegation suggests the following amendment:-
"1. -The Executive Board shall consist or not more than fifteen
Members of the Organization elected by the Conference."
Paragraph 4
Similarly as with paragraph 2 or Article 63 the Secretariat sug-
gests the following amendment: "Each member of the Executive Board
shall have one representative [and may appoint alternates und advisers
to its reprsentative ]." Page 13
Article 69 -- Voting in the
Executive Board
The United States Delegation suggests that consideration of this
article be deferred -- see General Comment 4 to- Article 64.
Article 70 -- Sessions, Procedure and Officers of the
Executive Board
General Comments
The Drafting Committee drew 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 it is not in
session.
Specific Comments
Paragraph 2
The Secratariat points out that whereas immediatee re-election"
appears in paragraph 2 of Article 68, "re-election" only appears in
this paragraph.
Paragraph 4
The Secretariat suggests that it might be edvisable to expand the
text of the first sentence to show that it is the Board which determines
whether a matter is of particular and substantial concern, should that
be the intention.
Article 91 - Powers and Duties of the Executive Board
General Comments
The United Kingdom Delegation considers that the Executive Board
should be Given power to delegate its authority to a limited number of
its members including its Chairman.
Specific Comments and
Amendments .
Paragraph 1
The Drafting Committee was of the opinion that the last sentence
will be redundant if the Preparatory Committee decides to include pro-
vision for a commission for industrial development in the Charter. Page 14
Paragraph2
The Secretariet suggests that "provisional agenda" be substituted
for preliminary agenda."
Paragraph 3
The Secreteriet suggests the following emendment designed to make
this paragraph more positive:-
"3. The Executive Board [may] shall examine and [recommend] make
recommendations to the Conference upon applications for [ the ] admission
[of new Members ] to the Organization."
Article 72 -- Establishment of Commiseions
1. The Australien Delegation makes the following comment:-
-The structure of the International Trade Organization includes
expert Commissions which are to advise and perform other functionss
on behalf of the Executive Board, It is proposed that there should
be a Commission for each of the fields covered respectively by
Chapter IV, V, VI and VII.
No Commission hes been proposed to embrace the subjects of
Chapter III. The subjects are important among the purposes of
the Organization. Moreover, the Australian Delegation believes
that the precticability of abiding by the rules laid down in the
rest of the Charter will depend to an important degree on the im-
plementation of Chapter III, It is therefore felt that the Or-
ganization requires regular advice. on the general economic ques-
tions that will arise under Chapter III. The Economic and Social
Council and other organizations have machinery to review and report
upon developments in this field upon which the International Trede
Organization can depend lor assistance. The Australian Delega-
tion believes, however, that presentation to tho Executive Board
and Conference of information and advice on issues erising out of
Chapter III which are relevant to decisions which have to be made Page 15
in the wide field of commercial and commodity policy calls for
technically equipped personnel within the International Trade
Organization, It is essential, for practical purposes, that in-
formation and advice should be related to the specific issues which
are before the Organization at any given time.
It is therefore suggested that the Preparatory Committee
consider whether this need should be met by the création of a
Commission on questions or employment and economic activity or
by some other form of machinery.
2. The French Delegation proposes the following amendment and states
that if it is adopted, an additional article defining the functions of
the Commission on Economic Development and Co-Ordination should be drawn
up and inserted between Articles 74. and 75.
"The Conference shall establish a Commission on Economic Develop-
ment and Co-ordination, a Commission on Commercial Policy, a Commis-
sion on Business Practices, and a Commodity Commission, and may es-
tablish such other Commissions as may be required. The Commissions
shall be responsible to the Executive Board.."
3. The United States Delegation proposes the following amendment which
it has already put forward on page 8 of Document E/PC/T/W/123:-
"The Conference shall establish a Commission on Commercial Policy,
a Commission on Business Practices, [and] a Commodity Commission
Commission on Economic Development and International Investment, end
may establish such other Commissions as may be required. The Commis-
sions shall be responsible to the Executive Board.
4, The Secreteriat points out that perhaps the commencing; words "The
Conference shall establish" should be changed to "There shall be to
conform with Article 57 *
Article 73 -- Composition end Procedure or Commissions
Paragraph 1
United States Delegation comment that unless cailings are pro
vided on the size of international commissions of this naturo , there is Page 16
a strong likelihood that they will become too large to be workable and
May thus involve unnecessary expense. On the other hand, if the Com-
missions are kept to moderate size, the tendency for Commission members
to regard themselves as representatives rather than experts might be
lessened. The United States Delegation therefore proposes the following
amendment : -
"1. Commissions shall be composed of not more then saven
persons chosen by the Executive Board and qualified by training
and experience to cherry out the functions ol the Commisssion in
accordance with the purposes of the Charter."
Paragraph 4
The Secretariat suggests the following amendment:-
"The Chairman of [each] commission shall be entitled to
participate, without the right to vote, in such of the delibera-
tions of the Executive Board and of the Conference as are of
concern to the commission."
Paragraph 5
The delegates who thought that this provision was redundant in view
of the provisions of article 81 ( commment in D.C. Report) were those of
Australia and South Africa. The Secretariat agrees with this view.
Article 74 -- General Functions of Commissions
1. The United Kingdom Delegation comments upon Articles 74-77 that it is
not clear whether the Commission can initiate studios, advice and recom-
mendations or whether thon can only set on the instructions and within the
tems of reference assignod to ther by the Conference or the Executive
Board. It is assumed that the former is intended, and that this will be
clarified during the discussion that will be necessary on the subject of
the Commissions end particularly of the Commission on Restrictive Busi-
ness Practices.
2. The Secratariat points out that
(a) as commissions are responsible to the Executive Board it may Page 17
be as wall to delete the reference to assignment of functions
to tham by the Conference;
(b) th' reference to functions in connection with tho settle-
ment of disputes may need to be reviewed after Article 86 has
been examined; and
(c) as a matter or drafting, the second sentence may be deleted
and the first sentence redrafted as follows:- "In addition to the
functions conferred upon them, elsewhere in this Charter the Com-
missions shall perform, etc."
Article 75 -- Functions of the Commission on Commercial
Policy
1. The Secretariat suggests that the introductory words should be re-
drafted to read "The functions of the Commission on Commercial Policy
shall include:
(a) Advising, etc."
Similar alterations are suggested for Article 76 an. 77.
2. To conform with the order of articles 76 and 77 the Secretariat
suggests that sub-paragraph (b) should precede sub-paragraph (a).
3. The Secretariat suggested that sub-paragraph (a) might be better
*worded as follows:-
"(a) to advise and make recommendations to the Executive Board
on all matters falling within the scope of Chapter V;
"(b) similarly to advise and make recommendations regarding the
commercial policy aspects involved in the exercise by the Organi-
zation of its functions under this Chapter
"(c) to develop . . . . etc."
Sub-paragraph (b) of Article 76 might be similarly reworded.
Article 77 -- Functions of the Commodity Commission
Thc Secretariet points out that sub-paragraph (b) of Article 77
is not as wide as the corresponding sub-paragraph..of Articles 75 and
76 in thet no such phrase as "and regarding the commercial policy as-
pects of proposals involving the exercise by the Organization of its Page 18
functions under this Chartar as is used in the latter articles appears
in the former. It may be desirable to make the three articles uniform
in this respect..
Article 79 -- The Director-General
Paragraph 2
1.- The United Strstes Delegation comments that unless the responsibility
tor budget preparations is clearly upon the Director-General, experience
has shown that this natter "may fall between two stools." The regulations
to be approved by the Conference under paragraph 1, which are more flexible
in their nature, can contain whetever provisions may be necessary in this
respect. It is pointed out that the Director-General is, in any case,
under the supervision of the Board .
2. For these reasons the United Stetes Delegation proposes the following
amendment of the lest sentence;-
"He shall present through the Executive Board an annual report to
the Conference on the work of the Organization und shall [in con-
sultation with the Executive Board prepare the budget of the Or-
ganization for submission to the Conference."
Article 81 -- Reletions with Other Organizations
Paragraph 1
1. The delegates who wished to delete the words "by the Directer-General"'
(comment in D.C. Report) were those of Australia and South Africa. The
delegate who opposed this proposal was the French delegate.
2. The United Kingdom Delegation comments that the words "concluded by
the Director-Genreral" are unnecessary since the relationship agreement
will be negotiated by a committee eppointed by the Conference and it will
be signed by the negotiators and General into force upon approval by the
Conference and by the General Assembly the United Nations.
3. The Secreteriat suggests that the words "This relationship shall be
effected through agreement with the United Nations under Article 63 of Page 19
the Charter of the United Nations" should be deleted as unnecessary.
The United States Delegation suggests that the words "and May in-.
vite them to undertake specific tasks" is redundant and proposes that
it be omitted.
Paragraph 4
The United Sttites Delegation proposes that "international organiza-
tiorls)" wherever used in this paragraph should be changed to "inter-
governmental organizationss" since the Organization should be concerned
only with the absorption of public organizations.
Article 82 -- International Resbpsoibilities of Personnel
The Secretariat suggests that this article might be transferred to
Section F -- Secretariet to conform with the arrangement of the Charter
of the United Nations.
Article 84 -- Status of the Organization
Paragraph 5
The Secretariet suggests that in view of the tact, that negotiations
aimed et the preparation of a uniform convention regerding, the privileges
and immunities of the United Nations and the specialized agencies are
proceeding between the Secretary-General and such agencies, this para-
graph should be amended to read as follows:-
"3, Such legal capacity, privileges and immunities shall be
defined in en agreement to be prepared by the Organization in con-
sultation with the Secretary-General of the United Nations and
concluded between the Mémbers,"
The paragraph would then be in conformity with Article 68 of the Con-
stitution of the World Health Organization.
Article 85 - amendments to the Charter
1. The delegate who reserved his position regarding the phrasing of
the first paragraph (comment in D.C. Report) was the French Delegate . Page 20
2. The United States Delegation proposes the following amendments
to paragraphs 1 and 2:-
"1. Any amendment to this Charter which does not involve a
(a) new obligations
change in the obligations assumed by Members new obligations
on 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 a change in
the obligations assumed by Members [new obligations on the part
of Members] shall, after receiving the approval of the Conference (b)
become effective for each Member accepting the amendment, upon ac-
ceptance on the part of two-thirds of the Members, end thereafter
for each remaining Member on acceptance by it. The Conference may
determine that any amendment under this paragraph is of such a
nature that any Member which has not accepted it within a poriod
specified by the Confereance- shall be required to withdraw from the
Organization; provided that the Conference may, by the affirmative
votes of two-thirds of the Members of the Organization, deter-
mine the conditions under which this requirement may be waived with
respect to any such Member. (c) [ The Conference may determine that
any Member which has not accepted an amendment under this paragraph
within a period specified by the Confercnce, shall cease to be a
Member of the Organization. In the absence of such determination, ]
A Member not accepting an amendment shall, notwithstanding the pro-
visions of paragraph 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.
Notes:
(a) This change covers cases where amendments change existing ob-
ligations as well as when they add new obligations. Page 21
(b) This change will require that amendments which change the
obligations of Members must be approved by the Conference before
they are submitted to the Members. This is not covered under
the -New York draft.
(c) This amendment does not change the substance of the existing
text to any important extent, except that it gives to the Confer-
ence more flexibility in dealing with Members which fail to accept
amendments. This power is very similar to that already contained
in paragrpah 3 of Article 66.
3, The Cuban Delegation proposes to insert a new Article 85 A reading
as follows:-
"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 res-
pect to matters affecting the operation of the Charter, 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. The same wording as the present Article 35, paragraph 2,
substituting in the third sentence of this paragraph the word
."Chapter" by the word Cherter. "
Article 86 -- Interpretation and Settlement of Disputes
1. The delegate who opposed the text of paragraphs 2, 3 and 4 as pro-
duced at the 'First Session on the ground that the distinction between
justiciable and other issues was untenable and that nullification and
impairment and interpretation and settlement of disputes belonged to--
gether (General Comment in D.C. Report) was the United Kingdom Delegate.
2. The Cuban Delegation suggests that in the third line of paragraph 2
the word shall" should be altered to "may" and that the following sen-
tence should be added at the conclusion of thet paragraph:- " The application
of the procedure in Article 85 A does not exclude the initiation of the Page 22
procedure set forth in this paragraph, as far as it is applicable to
the case, -provided the first mentioned procedure bas been terminated."
The Cuban Delegation also suggests that paragraph 3 and 4 should be
made into a new Article 86A. These proposals oa the Cuban Delegation
are designed to regroup the remedies crested by the Charter for settling,
either amicably or by e legal procedure, questions or disputes arising
out of the wordirzi or the application of the Charter, or which may de-
velop by actions directed against ahe purposes of the Charter or situa-
tions having the effect of nullifying or impairing its objects.
3. The United Kingdom Delegation suggests that the following text be
substituted for the present text of Article 86:-
- Article 86
"Nullification, Impaiment and Disputes
"1. Nothing in this 'Article shall be construed to limit or exclude
other procedures established in this Charter first consultation over
snd settlement of complaints or difficulties arising out of its
operation.
"2. If any. Member considers that another Member has adopted .any
measure, whether or not it constitutes a breech of an obligation
under this Charter, or that any situation has arisen, which has
the effect of nullifying or impairing any object of this Charter,
It may invite the Memberss concerned to consult theroon and they
shall endeavour to reach a satisfactory settlement.
"3. If no such settlement can be reached, the matter may be re-
ierred by an interested Member to the Executive Board, which shall
give a ruling thereon.
"4. Any ruling of the Executive Board shell be reviewed by the
Conference at the request of any interested Member. Upon such
request the Conference shell by resolution of the majority confirm
or amend or reverse the ruling, provided that
(i).it may , as appropriate, consult with the Economic and
Social Council of the United Nations and with any other Page 23
interested inter-governmental organizations ; and
(ii) il the matter involves a dispute as to the interpre-
tation or the Charter, it shall at the instance of not
less than one-third of the Members request from the Inter-
national Court o Justice an advisory opinion thereon end
any proceedings for tho review by tho Conference of such a
ruling of the Board shall thereupon be stayed until the
opinion of the Court is delivered, and the Conference, when
it finally reviews such ruling, shall adopt and be bound by
the advisory opinion delivered by the Court. The Confererce
after reviewing that ruling may make such further recommenda-
tions to the Members concerned as it thinks fit.
"5. If it considers, in any case brought before it in pursuance of
this article, that a breach of obligations under this Charter or
that nullification or impairment of any object of this Charter has
taken place of a character serious enouh to justify such action,
the Conlerence may authorize any Member or Members to suspend the
application to any other Member or Members of such obligations or
concessions under the Charter as it may specify. If such obliga-
tions or concessions are, in fact, suspended, any affected Member
shall then bo frae to give notice of withdrawal from the Organi-
zation. Such notice must be given to the Organization in writing
and within 60 days matter such action is taken, and the Member's
withdrawal shall become effective 60 days after the receipt by
the Organization of the said notice.
"6. The Executive Board and the Conference shall respectively
make rules of procedure for giving effect to this Article.
Article 88 -- Entry into Force
Paragraph 1
1. The United Kindom Delegation proposes to transfer this paragraph
to the very end of the Charter and to amend it as follows:- Page 24
"The original English and French texts 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 [shall] will furnish certified copies
[thereff ] or both texts to all interested Governments.
"Done at this day or
194 in the English and French languages, both texts having equal
force. In witness whereof the undersigned duly authorized to that
effect, have signed the present Charter, and have affixed thereo t
their seals."
2. The United Kingdom Delegation makes the following comments upon
these amendments:-
(a) The provision or paragraph 1 or the Drafting Committee text.
of this Article e.s to deposit or the original text with the United
Nations is out of place and should be transferred to the very end
of the Charter, immediately before the signature formula.
(b) It is proposed to include the provision ror signature which
was reagular in pre-war conventions and treaties, Such signatures
will not, or course, bind any signatory Government pending its ac-
ceptence, but are necessary for the purpose or authenticating the
agreed text.
3. The United Kingdom Delegation suggests that the following paragraph
should be substituted for paragraph 1:- "This Charter shall remain open
for signature until 194 and shall be subject to accep -
tance."
Paragraph 2
1. The United Kindom Delegation suggests the following re-draft of
this paragraph:-
"2. Each Government accepting this Charter shall deposit en
instrument of acceptance with the Secretary-General or the
United Nations who [will] shall inform all Governmentet repre
sented at the United Nations Conference on Trade and Employment Page 25
and all other Members of the United Nations [which were] not so
represented [at that Conference] of the /day ] date of deposit of
each instrument of acceptance and of the [day] date on which this
Charter enters into force under paragraph 3 4 of this Article.
After this Charter has entered into force, each Government which
has deposited an instrument of acceptance shall thereupon become
a Member of the Organization.
2. The United Kingdom Delegation proposes to insert the following new
paragraph between the present paragraphs 2 and 3:-
"The Government of any country whose proposed Membership of
the Organization has been approved by the Conference under para-
graph .... of Article 2 shall deposit en instrument of accep-
tance with the Secretary-General of the United Nations, and shall
thereupon become a Member of the Organization."
Paragraph 3
1. The delegate who proposed to re-insert the original text of para-
graph 3 of article 78 of the United States Draft Charter (comment in
D.C. Report) was the United Kingdom Delegate.
2. The United Kingdom Delegation proposes the following; redraft of
this paragraph:-
"3. This Charter shall enter into ?orce on the sixtieth day fol-
lowing the day on which the number of Governments represented et
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 instrument of acceptance
of each other accepting Government shall take effect on the six-
tieth day following the day on which the instrument of such as
ceptance it is deposited, Provided that, if this Chartar shall
not have entered into force by 194, any of the
Governments which have [made effective] brought into force the Page 26
General agreementt on Tariffs and Trade dated 194,
together with any other Government represented at the United
Nations Conference on Trade and Employment, may agree to bring
this Charter into force among themselves in accordance with ar-
rangements which they may agree upon. Any instrument of accep-
.tance deposited with the Secretary-General of the United Nations
shell be taken as covering both procedures for bringing this
Charter into force, unless it expressly provides to the contrary
or is withdrawn."
Paragraph 4
1. The French Delegetion proposes the following amendment:
"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] . In respect of those territories which are
self-governirig in matters provided for by the Charter, each MemelIiMein-
bnotifyll eaSecretary5Goit4tey-Ceneral of the United fations or
ias accaptence of this Chartar on behelf of any such self-
governing territory, and the provisions or this Charter shall be-
come applicable to that territory on the sixtieth day following
the day or the receipt or such notification."
2e The Naw Zealand Delegation proposes the following amendment to
the second sentence:- "Euch Member shell, on behalf of anyfsuch sela-
governing territories, notify the Secretary-General or the United
fations or [its] the acceptance of this[oCharter Énfbeha]fbyr any7 b3.
such selt-governing territory, and the provisions or this Charter shall
becori applicable to that territory on the sixtieth day following the
day of the feceipt ot such notification."
3. The United Kingdom Delegation proposes that the following two
paragrephs should replace paragraph 4:- Page 27
"Each Government accepting this charter does so in respect of
its metropolitan territory and of any other territories for which
it has international responsibility: Provided that it may at the
time of acceptance declare that any separate customs territory
for which it has international responsibility possesses full
autonomy in the conduct of its external commercial relations
and other matters provided for by the Charter, and thet accep-
tance does not relate to such territory.
"Each Member may, at any time, accept this Charter in ac-
cordence with paragraph 2 of this article on behalf of any such
separate customs territory willing to undertake the obligations
of the Charter. Acceptance on behalf of such territory shell
take effect on the sixtieth day following the deposit of the
instrument of acceptance."
4. The United Kingdom Delegation explains its amendment of paragraph
4 as follows.--
(a) These paragraphs follow from the draft Recommendation of the
Preparatory Committee proposed in paragraph 6 of the Executive
Secretary's note E/pc//T/Del.39, of which the last paragraph con-
templates that invitations to the Trade and Employment Conference
would be sent to those customs territories which are not respon-
sible for the full conduct of their international relations but
in respect of which the Government of the metropolitan country,
being a state which is a Member of the United Nations, or, if not,
receives an invitation, declares that they possess full autonomy
in the conduct of their external commercial relations and other
metters provided for by the Charter. The United Kingdom Delega-
tion favours this proposed recommendation and will in due course
propose a redraft of Article 2 (Membeship) to toke account of it.
(b) The words "willing to undertake the obligations of the
Charter" have bean re-inserted from the London text. They. ere Page 28
omitted by the Drafting Committee on the assunption -which the
United Kingdom Delegation considers mistaken, that they were
unnecessary.
Article 89 -- Withdrawal and Termination
Paragraph 1
1. The United Kingdom Delegation proposes to add the phrase "or para-
graph 2 of Article 85" after "Article 35" and comments thet the contin-
gency contemplated in the last sentence of Article 85 (2) namely, that
a Member which does not accept an amondment or the Charter involving new
obligations may withdraw from the Organization clearly needs to be pro-
vided for in this paragraph.
2. Consequential upon its proposed to redraft paragraph 4 of Article
88, the United Kingdom Delegation proposes the following amendment:-
"1. Without prejudice to the provisions. . . . any Member may
withdraw from the Organization either on its own behalf or on
behalf of a separate customs territory [which is at the time self-
governing in respect of matters provided for by this Chater] in
respect of' which it has accepted the Charter under peragraph 6 of
Article 88 at any time . ..... Director-General. "
Paragraph 3
The United States Delegation suggests that this paragraph should
be replaced by the following paragraph, the present text becoming a
new paragraph 4:-
"3. Without prejudice to any other provision of this Charter,
and subject to such conditions as it may deem appropriate, the
Conference may require any Member which has persistently violated
provisions of this Charter to withdraw from the Organiization."
New Article 90 -- Registration
article 102 or the Charter of the United Nations rends: Page 29
"1. Every treaty and every international egreement entered into
by any Member of the United Nations after the present Charter
comes into force shall as soon as possible be registered with
the Secretariat and published by it.
"2. No party to any such trenty or international agreement
which has not been registered in accordance with the provisions
of' paragraph 1 of this Article may invoke that that.treaty or agree-
ment before any organ of the United Nations.""'
Paragraph 2 of Article 3 of the Regulations regarding Registra-st-
tiof Treaties reads:s:
".2Registration effected in in accordancwithit article 4 of these
gulations ns relieves alparties of f' the obgation on tregister.""
3. Paragraph 1 of article 4 of theRegulations s reads:
"1.Everyr treaty or international agreemente subject to article
1o.f theseregulations shall be registered ex officic by the he
ted Nations in the following cases:cas
"(a) Where the United Nations is a party to the treatr o
agreement;
"(b) Where the Unitea Notiona hes been authorized by the
treaor agreement to effect registration."on.
4.To 1' relieve governments of the obligation of registration the fol-
lowing article is suggested by the Secratariat:-
"Article 90
"The United Nations is authorized to effect registraetion of this
Chartas es soon as comesnes into force." |
GATT Library | jq051wp8595 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Chapter VIII (Organisation) | United Nations Economic and Social Council, June 19, 1947 | United Nations. Economic and Social Council | 19/06/1947 | official documents | E/PC/T/IV/204 and E/PC/T/W/177-207 | https://exhibits.stanford.edu/gatt/catalog/jq051wp8595 | jq051wp8595_90050349.xml | GATT_152 | 1,486 | 9,745 | UNITED NATIONS
.
ECONOMIC
AND
SOCIAL COUNCIL
NATIONS UNIES
CONSEIL
ECONOMIQUE
ET SOCIAL
RESTRICTED
E/PC/T/IV/204
June 19, 1947
ORIGINAL: ENGLIS}i
.
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
J-fTED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
Chapter VIII (Organisation)
The Delegation of tha United Stutes of America submits
the following proposals for the amendment of Chapter VIII.
Section A - Functions and Structure of the Organization
Article 61 Functions
Sub-paragraph c.
(c) To make studies and recommendations for, and promote
international agreement on measures designed to expand the volume
and improve the bases of international trade and generally to
accomplish any of the purposes of the Charter;(l) including
measures to facilitate commercial arbitration and the avoidance
of double taxation, and to u2sure just and equitable treatment
(2)
for foreign nationals and enterprises. Land to assure Just
and equitable treatment for the entjerprises, skills, capital,
arts and tFechnolaoy brought from or.e country to another, including
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.7
Oub-Paragraph d.
It is suggested that the last clause of the paragraph be
amended to read:
... , and to perform any othor function necessary
and proper to carrying out the /appropriate to the
purposes and7 provisions Of this Charter." E/PC/T/W/204
page 2
COMMENTS:
Generally, these amendments are largely consequent upon the
amendments already suggested by the U.S. Delegation in regard to
Chapter IV, (E/PC/T/Wq/123). They are also intended to make the
Article more general and inclusive.
(1) There does not seem to be any reason to confine the work of
the Organization in developing international conventions to
any scope less than the full field of the Charter.
(2) This broad provision is intended to cover many types of
questions such as the treatment of commercial travellers,
discrimination against forGign creditors in bankruptcy,
insolvency or rergnnization, ctc.
Saction B - The Conference
Article 64 Voting
The U.S. Delegation suggests that consideration of this
Article, together with the related ArticlEs 66, paragraph 5,
68 and 69, bu postponed until work on the substantive questions
of the Charter has been substantially completed. àt that timu,
it wilî be appropriate to consider the Roport of the
Administrative Sub-Committee of tha New York Committee on Voting
and Board Membership.
Article 66 Powcrs and Duties (of thc. Conference)
Paragraph 3.
"3. The Conference may, by the affirmative votes
of two-thirds of the Members of the Organi2ation, determine
criteria and set up requirements and rxoedures L, including
voDting procedurcs,7 for vzaiving, ir. exceptional circum-
stances, obligations of Members undertaken pursuant to this
Charter." E/PC/T/W/204
page 3
COMMENT:
This change is designed to make it clear that voting
requirements as well as other procedures are covered.
Paragraph 4.
It is suggested that this paragraph be omitted.
COMMENT:
The U.S. Delegation has already suggested amendments to
Articles 30 and 52 under which the substance of this paragraph
is covered.
Paragraph 7.
" 7. Tho Conference shall approve the budget of thu
Organization, and shall apportion thc; uxponditure of tho
Organization amonej the Me;mbers, provided that no Member shall
be required ta contribute mnore than one-third of the total
of such expenditure without its consentt"
Section E - Commissions
Article 72
The Confere;nco shall establish a Cominission on Conimerical
Policy, a Commission on Business Practices. r5nd_ a Commodity
Commission a Commission on Economic Development and International
Investment, and may establish such other Commissions as may be
required. The Commissions shall be responsible to the Exacutive
Board.
COMMENT:
This amendment has already been proposed by the U.S.
Delegation in E/PC/T/W/123, page 8.
As indicated by tho footnote to Article 71 in the New York
Report, the acceptance of the change here suggested would make E/PC/T/W/204
page 4
the last section of paragraph 1 of Article 71 redundant.
Article 73 Composition and Procedure (of Commissions)
Paragraph 1.
"1. Commissions shall be composed of not more than
seven persons chosen by the Executive Board and qualiMied
by training and experience te carry out the functions of
the Commussion in accordance with the purposes or the
Charter.'
COMENT:
Experience has shown that unless ceilings are provided on the
size of international commissions of this nature, there is a strong
likelihood that they will become too large to be workable and may
thus involve unnecessary expense. On thu othur hand, if the
Commissions are kcpt to moderate size, thu tcmderncy for Commission
members to reward themselves as representatives rathEr than
experts might be lessened.
Section F - The Secretariat
Article 79 The Director-Gt:ncnral
Paragraph 2.
It is sucggsted that tho last sentence bü amended B0
as to read:
"Hec shall prescrnt through th¢e E.xicutivçr Board an' annual
report tc the Confcrcnce on the work of thL OrCani-
zation and Shall Ln consultation with the Executivo
Boardj prepare the budget ofi the Organization for
submission ta the Conference."
C OENT:
Unless the responsibility for budget preparation is clearly E/PC/T/W/204
page 5
upon the Director-General, experience has shown that this matter
"may fall between two stools." The regulations to be approved by
the Conference under paragraph 1, which are more flexible in
their nature, can contain whatever provisions may be necessary
in this respect. It is pointed out that the Director-General is,
in any case, under the supervision of the Board.
Section G - Miscellaneous Provisions
Article 81 Relations with other Organizations
Paragraph 3.
It is suggested that the last clause be deleted so that the
paragraph will read:
"13. The Organization may make suitable arrangements
for consultation and cooperation with non-governmental
organizations concerned with matters within its competence
and may invite them to undertake specific tasks-j."
COMMENT:
The last clause seems to be redundant as it is cltiarly
covered by the first part of the paragraph.
Paragraph 4.
It is suggusted that the words "international organizationss"
used in this paragraph be changed to read "intergovernuental
organizationss).
COMMENT:
This change means that the ITO will be concerned with the
possible absorption only of public rather than private organizations.
This would appear to be a proper limitation. E/PC/T/W/204
page 6
Article 85 Amendments to the Charter
1. Asny amendment to this Charter which does not involve a
change in the obligations assumed by Members (new obligations
on 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 tu this Charter which involves a chanRe
in the obligations assumed by Members £Lfew obligations on the part
of Members, shall, after eeceiving the approval of the
Conference, 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 Conferenco may determine that any amendment under thiz paragraph
is of such a nature that any Member which has not accepted it
within a period specified by the Conference shall be required to
withdraw from the Organization; provided that the Conference may,
b the affirmative votes of two-thirds of the Membors of the
Organization, determine the conditions under which this requïremont
may be waived with respect to env such Member. LThe Conference
may determine that any Member which has not accepted an amendment
under this paragraph within a period specified by the Conference,
shall ceasa to be a Member of the Organization. In the absence
of such determination,J A Member not accepting an amendment. shall,
notwithstanding the provisions of paragraph 1 of Article 89,
be frae to withdraw from the Orgenization upon the expiration
of six months from the day on which written notice of such with-
drawal is received by the Director-General.
COMI NT:
(1) This change covers cases where amendments change
existing obligations as well as when they add new obligations. E/PC/T/W/204
page 7
(2) This change will require that amendments which change
the obligations ofI Members must be approved by the Conference before
they are submitted to the Members. This is not covtrred under the
New York draft.
(3) This amendment does not change the substance o the
existing text to any important extent, except that it gives to
the Conference more flexibility in dealing with Members which. fail
to accept amendments. This power is very similar to that already
contained in paragraph 3 of Article 66.
Article 89 Withdrawal and Termination
It is suggested that a new paragraph between present
paragraphs 2 and 3 bc a ddcd as following
"3. Without prejudice to any ether provision of
this Chartor, and subject to such conditions as it may
deem appropriate, the Conference may require any Member
which has persistently violated. provisions of i.t3 Charter
to "withdraw from the Orpanization,."
x x x
The Unitod States Delegation intends, at the appropriate time,
to submit suggestions with regard to an appropriate arrangement
ot the Articles now contained in Chapter \VIII and certain other
material which might be treated in connection therewith. |
GATT Library | yb865db7814 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Chapter VIII - Organisation. Amendments Proposed by the Chinese Delegation | United Nations Economic and Social Council, June 23, 1947 | United Nations. Economic and Social Council | 23/06/1947 | official documents | E/PC/T/W/222 and E/PC/T/W/220-235 | https://exhibits.stanford.edu/gatt/catalog/yb865db7814 | yb865db7814_90050370.xml | GATT_152 | 180 | 1,356 | UNITED NATIONS NATIONS UNIES
RESTRICTED
ECONOMIC CONSEIL
AND ECONOMIQUE E/PC/T/W/222
23 June 1947.
SOCIAL COUNCIL ET SOCIAL ORIGINAL: ENGLISH
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT.
CHAPTER VIII -- ORGANISATION
Amendments Proposed by the Chinese Delegation.
Article 71 (1)
Delete the following sentence:- "It shall provide
adequate machinery to review the work of the Organization relat-
ing to industrialisation and general economic development."
Article 72
Add the following words :- After "establish," in the
first line:- "A Commission on Economic Development."
Article X
Add a new article defining the functions of the Commission
on Economic Development. The wording of the new article may
be as follows:
"The Commission on Economic Development shall have the
following functions:
(a) To facilitate the co-operation of the Members with
one another, and with the Economic and Social Council
of the United Nations and appropriate intergovern-
mental organizations in the promotion of industrial
and general economic development.
(b) To advise and make recommendations to the Executive
Board on all matters falling within the scope of
Chapter IV." |
GATT Library | ds246zp5372 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Chapter VIII (Organisation). Amendments proposed by the United Kingdom Delegation | United Nations Economic and Social Council, June 17, 1947 | United Nations. Economic and Social Council | 17/06/1947 | official documents | E/PC/T/W/202 and E/PC/T/W/177-207 | https://exhibits.stanford.edu/gatt/catalog/ds246zp5372 | ds246zp5372_90050346.xml | GATT_152 | 1,854 | 11,874 | UNITED NATIONS NATIONS UNIES RESTRICTED ECONOMIC CONSEIL E/PC/T/W/202
AND ECONOMIQUE 17 June, 1947
ORIGINAL: ENGLISH
SOCIAL COUNCIL. ET SOCIAL
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE EMPLOYMENT
CHAPTER VIII (ORGANISATION)
Amendments proposed by the United Kingdom Delegation
ARTICLE 62: line 2, after "an Executive Board" add "a Tariff
Committee".
Comment: this addition appears desirable now that the Tariff
Committee has been converted from an interim to permanent organ
(see the Drafting Committee's amendments to Article 67).
ARTICLE 64: read:-
"1. Each Member shall have in the Conference 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 Conference shall be taken by a
simple majority of the votes cast".
Comment: (1) The U.K. DeIegation maintains the proposal for
weighted voting which it put forward at the meeting of the
Drafting Committee in Newï York. It maintains also the formula
which it then proposed for this purpose: see Appendix I on page
55 of the Drafting Committee Report; a specimen working--out
of the results is given in Appendix II on page 56. It is
contemplated that this formula would be set out in the Annex
mentioned in the above revised draft Article.
(2) The question whether two-thirds majorities should
be provided for in the case of certain specific questions arising
under the Charter, additional to those for which such provision
is already made, will need to be considered by the Preparatory
Committee. The U.K. Delegation's interim proposals and comments
on this subject are contained in Appedix XII on page 63 of the
Drafting Committee Report.
(3) It will be necessary in making the Rules of
Procedure for the Conference to decide how abstentions are to be
treated in relation to voting.
ARTICLE 67: paragraph 3: read:-
"Each Member of the Committee shall have in the Committee
the number of votes allocated in accordance with Article
64, paragraph 1, to the Member of the Organisation which
he represents." E/PC/T/W/202
page 2.
Paragraph 4: read:-
"Decisions of the Committee pursuant to paragraph 1 and 2
of this Article shall be taken by a two-thirds majority
of the votes cast, and other decisions by a simple majority
of such votes."
ARTICLE 68: read:-
"1. The Executive Board shall consist of 17 Members,
including the 8 Members of chief economic
importance. The Conference, excluding these 8
Members, shall elect the 9 additional Members of
the Board for terms of three years, subject to the
provisions of paragraph 4. Elective Members of
the Board shall not be eligible for immediate re-
election.
2. The Conference shall annually determine which are
the Members of chief economic importance on the
basis of a system of rating according to the
following schedule:- .
1 point per 50 million U.S. dollars of external trade;
1 point per 500 million U.S. dollars of national
income;
1 point per 10 million of population;
1 point per 10 per cent of external trade expressed
as a percentage of national income.
3. For the purposes of paragraph 2, points shall be
based on the relevant statistics for the average
of the three full calendar years immediately
preceding each annual determination. The first
determination of ratings shall be based upon the
average of the statistics for 1937 and the calendar
year immediately preceding the entry into force of
the Charter.
4. At the first election of the Board, 3 of the Members
shall be elected for after of one year, and 3
others for a term of two years.
5. The status of all Members on the Board shall be
equal in all respects.
6. Each Member of the Executive Board shall have
one representative and may appoint alternatives
for the advisers to its representative."
Comment: Paragraph 2. It will be observed that the basis
proposed for the determination of ratings of economic importance
is the same as that proposed under Article 64 for the weighting
of votes in the Conference, except that the 'basic vote' is for
this purpose omitted as motiveless. E/PC/T/W/202
page 3.
ARTICLE 71: the Executive Board should be given power to
delegate its authority to a limited number of its members
including its Chairman.
ARTICLES 74-77: it is not clear whether the Commissions can
initiate studies, advice and recommendations or whether they can
only act on the instructions and within terms of reference assigned
to them by the Conference or the Executive Board. It is assumed
that the former is intended, and that this will be clarified
during the discussion that will be necessary on the subject of the
Commissions and particularly of the Commission on Restrictive
Business Practices.
ARTICLE 81: Paragraph 1 line 9 delete the words "concluded by
the Director-General and".
Comment: These words are unnecessary, since the relationship
Agreement will be negotiated by a Committee appointed by the
Conference and signed by the negotiators, and it will be brought
into force upon its approval by the Conference and by the General
Assembly of the United Nations.
ARTICLE 86: The U.K. Delegation has already distributed the text
which it proposes (paper E/PC/T/W/161).
ARTICLE 88: Paragraph 1 of the Drafting Committee text should
be transferred to the very end of the Charter, and should read
as follows:-
"The original English and French texts of this Charter
shall be deposited with the Secretary-General of the
United Nations, who shall furnish certified copies of
both texts to all interested Governments.
Done at ...., this ..... day of ........., 194....
in the English and French languages, both texts having
equal force. In witness whereof the undersigned, duly
authorised to that effect, have signed the present
Charter, and have affixed thereto their seals."
Paragraph 2 etc. These remaining paragraphs should be amended
as follows:-
"1. This Charter shall remain open for signature until
...... 194 ... and shall be subject to acceptance.
2. Each Government accepting this Charter shall deposit
an instrument of acceptance with the Secretary--
General of the United Nations, who shall inform all
Governments represented at the United Nations
Conference on Trade and Employment and all other
Members of the United Nations not so represented,
of the date of deposit of each instrument of
acceptance and of the date on which this Charter
enters into force under paragraph 4 of this Article.
After this Charter has entered into force, each
Government which has deposited an instrument of E/PC/T/W/2O2
page 4.
acceptance shall thereupon become a Member of the
Organisation.
3. The Government of any country whose proposed
Membership of the Organisation has been approved by
the Conference under paragraph .......... of Article 2
shall deposit an instrument of acceptance with the
Secretary-General of the United Nations, and shall
thereupon become a Member of the Organisation.
4. 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 instruments of acceptance pursuant to
paragraph 2 of this Article shall reach twenty, and
the instrument of acceptance of each other accepting
government 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 194 , any of the governments
which have brought into force 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 arrangements 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.
5. Each Government accepting this Charter does so in
respect of its metropolitan territory and of any
other territories for which it has international
responsibility: Provided that it may at the time of
acceptance declare that any separate customs
territory for which it has international responsibility
possesses full autonomy in the conduct of its
external commercial relations and other matters
provided for by the Charter, and that acceptance
does not relate to such territory.
6. Each Member may, at any time, accept this Charter in
accordance with paragraph 2 of this Article on behalf
of any such separate customs territory willing to
undertake the obligations of the Charter. Acceptance
on behalf of such territory shall take effect on the
sixtieth day following the deposit of the instrument
of acceptance. E/PC/T/W/202
page 5.
7. Each accepting Government shall take such reasonable
measures as may be available to it to assure ob-
servance of the provisions of this Charter by
subsidiary governments within its territory."
Comment: (1) The provision of paragraph 1 of the Drafting
Committee text of this Article as to deposit of the original text
with the United Nations is out of place and should be transferred
to the very end of the Charter, immmediately before the signature
formula.
(2) It is proposed to include the provision for
signature which was regular in pre-war conventions and treaties.
Such signatures will not, of course, bind any signatory Government
pending its acceptance, but are necessary for the purpose of
authenticating the agreed text.
(3) The new paragraph 5 and 6 are a revision of
paragraph 4 of the Drafting Committee text. They follow from
the draft Recommendation of the Preparatory Committee proposed
in paragraph 6 of the Executive Secretary's note E/PC/T/Del.39,
of which the last paragraph contemplates that invitations to the
Trade and Employment Conference would be sent to those customs
territories which are not responsible for the full conduct of
their international relations but in respect of which the
Government of the metropolitan country, being a State which is a
Member of the United Nations, or, if not, receives an invitation,
declares that they possess full autonomy in the conduct of their
external commercial relations and other matters provided for by
the Charter. The U.K. Delegation favours this proposed
Recommendation and will in due course propose a redraft of Article
2 (Membership) to take account of it.
(4) The words "willing to undertake the obligations
of the Charter" have been re-inserted from the London text. They
were omitted by the Drafting Committee on the assumption, which
the U.K. Delegation considers mistaken, that they were unnecessary.
ARTICLE 89: paragraph 1: third line, after "Article 35" insert
"or paragraph 2 of Article 85".
Comment: the contingency contemplated in the last sentence of
paragraph 2 of Article 85 (Drafting Committee text), viz. that a
Member which does not accept an amendment of the Charter involving
new obligations may withdraw from the Organisation, clearly needs
to be provided for in the present paragraph.
Paragraph 1: 4th and following lines, read:- "or on behalf of a
separate custom territory in respect of which it has accepted the
Charter under paragraph 6 of Article 88."
Comment: This is consequential upon the revised new paragraph 6
of Article 88 proposed above.
Palais des Nations,
Geneva.
17 June 1947. |
GATT Library | wg146nt4249 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Chapter VIII - Organisation. General Observations by the Chinese Delegation on the Weighted Voting Systema Sugggested in Appendices 1, 2, 7, 8, 9 and 10, "D.C. Report" | United Nations Economic and Social Council, June 23, 1947 | United Nations. Economic and Social Council | 23/06/1947 | official documents | E/PC/T/W/221 and E/PC/T/W/220-235 | https://exhibits.stanford.edu/gatt/catalog/wg146nt4249 | wg146nt4249_90050369.xml | GATT_152 | 702 | 4,526 | UNITED NATIONS NATIONS UNIES RESTRICTED
E/PC/T/W/221
ECONOMIC CONSEIL ORIGINAL: ENGLISH
ECONOMIC CONSEIL 23 June 1947
AND ECONOMIQUE
SOCIAL COUNCIL ET SOCIAL
SECOND SESSION OF THE PREPARATORY COMMITTEE OF
THE UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
CHAPTER VIII -- ORGANISATION
General observations by the Chinese Delegation on the
Weighted Voting systema sugggested in Appendices
1, 2, 7, 8, 9 and 10, "D.C. Repert"
1. The general application of weighted voting to all provisions
of the Charter would, in the opinion of the Chinese Delegation,
not only be unfair to the Members. in the early stage of industrial-
ization. but would also be unrealistic. For instance, decisions
regarding the admission of New Members, the provision. of tech-
nical assistance to Members to complete their plans for industrial
development and approval of protective measure. submitted by
members for the oarrying out of the programmes of economic
development, etc., would be unduly influenced against the
applicant Members by a few Members possessing a large number of
votes. It is obvious that, under the various proposed formulae
for weighted voting, the industrialized countries would have a
predeminant voice in deciding issues which may be irrelevant to
the economic importance a Member may possess.
2. In the draft Charter the interests of Members who would be
substantially affected by any measures proposed or taken by any
other Member are fully protected, since the negotiations would,
in many cases, have taken place between those Members and the
Member who was applying the measure; in other words, industrial-
ized countries or countries which have a large interest in E/PC/T/W/221
~~Page 2.
foreign trade would be in a better posioion te negotiate a
mentleinen than an under-reveloped country.
3. The size of foreign trade or natiocomeinocme is not a proper
criterion to judge the effect of deciskons of the Organization in
relation to the Members, nor the obligations assumed ty a Member.
As the exports of a country may consist of mmoditiesdities, any
decisions on these commodities would mcan muoh more to that
country's economy than to a country which may ha7e a large volume
of exports consisting of a wide rfnge or manufactures.
4. From a technical point of view, no matter what formula for
weighted voting may be suggested, the factors selected would be
such as not to reflect the accuracy of a Member's economic
importance; for instance, foreign trade, national income,
percentage of trade in relation to national income, foreign trade
per capita of population would, if there is combination of any
of these factors, add more weight to the industrialized countries
than is appropriate.
5. The purpose of weighted voting gs to Cive a Member an
appropriate voice in the issuws in vhsch ite interests can be
accurately assessel. AlU statistics available now are a mere
record of past performance and therefore there is no ground for
using these statistics as a base on which to judge the eaDnomio
importance of a Member in the future, say in 1948/1949.
6. There can never be a satisfactory base peoiod f.r these
statistics because the economic position of a country is dynamic
and not static . For example , in the UKingdom'snrd%,L formula,
the base period selected for foreign tsade i3 1937 and for national
1,inco, 1940. These base years would not be accepto le tr China
because she was already at war. Even taking an average of pre-war
and pcst-war figures is not a satisfactory solution. because, as
. E/PC/T/W/221
Page 3.
has been pointed out, past perfermances should not be used as
criteria by which to judge a country's economic importance. As
to the figures selected, there can never be an agreement as to
what figures should be selected in all cases so as to avoid any
misrepresentation in the true appraisal of a Member's economic
position. Apart from the fact that the national income is, in
most cases; but an estimate, the value of currency in relation
to U.S, dollars could never be accurately ascertained.
The various weights as suggested under the U.K., Brazilian
and French formulae appear to be arbitrarily selected and there
could be endless variations as to the appropriate weight which
should be given to each on the factors mentioned.
4
, |
GATT Library | qw999wv0692 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Chapter VIII (Organization). Addendum to Annotated Agenda | United Nations Economic and Social Council, June 25, 1947 | United Nations. Economic and Social Council | 25/06/1947 | official documents | E/PC/T/W/210 Rev.1 Add.1 and E/PC/T/W/208-220 | https://exhibits.stanford.edu/gatt/catalog/qw999wv0692 | qw999wv0692_90050357.xml | GATT_152 | 444 | 3,090 | UNITED NATIONS NATIONS UNIES RESTRICTED
ECONOMIC CONSEIL E/PC/T/W/210 Rev.1 Add.1
AND ECONOMIQUE 25 June 1947
SOCIAL COUNCIL ET SOCIAL Original: ENGLISH
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT.
CHAPTER VIII (ORGANIZATION)
ADDENDUM TO ANNOTATED AGENDA
1. In paragraph 3 on page 1 of Document E/PC/T/W/210 Rev.1
the following additions should be made to the list of papers
containing proposals and comments:
Netherlands Delegation E/PC/T/W/200
United States Delegation E/PC/T/W/123 and W/204
2. The following material should be inserted at the top of
page 23 of Document E/PC/T/W/210 Rev.1:
Paragraph 2
1. The Netherlands Delegation proposes to put a colon at the
end of the first sentence and add "with particular reference
to the importance of food and agriculture in relation to the
subjects dealt with in Chapter VII."
2. The Netherlands Delegation explains this amendment as
follows:
The First Session deleted the words which are proposed to
be re-inserted (c. f. Draft Charter Article 7 paragraph 2) but
retained in Article 73 (London Draft) the-phrase "as set
forth more fully in paragraph (2) of Article 81." The
Drafting Committee knocked out these words, presumably because
nothing was set out more fully in Article 81and left every-
thing to agreements. This seems undesirable, the more so
since the Report of the Food and Agriculture Organization
P.T.O. E/PC/T/W/210 Rev.1 Add..l
page 2.
Preparatory Commission in its recommendations on the con-
stitution of the World Food Council specifies the International
Trade Organization to be invited to send a representative to
the meetings of the World Food Council (paragraph 253 under 2.).
It is important for the necessary co-operation between the Food
and Agriculture Organization and the International Trade
Organization in the field of agricultural commodities that there
are mutually consistent rules in both organizations. The best
place to deal with this problem seems to be Article 81, leaving
the way to make the actual arrangements to the Organization.
3. Add the following additional paragraph on page 22 to the
comments on Article 77:
The United States Delegation proposes to insert the
following new Article 77A:
Article 77-A
Functions of the Commission on Economic Development
and International Investment
The Commission on Economic Development and International
Investment shall have the following functions:
(a) To conduct studies relating to the promotion of
industrial and economic development and international
investment as provided for in paragraph 4 of Article 12,
(b) To advise and make recommendations to the Executive
Board on all mattors falling within the scope of Chapter
IV and regarding the exercise of the functions of the
Organization, insofar as they relate to industrial and
economic development, and the promotion of international
investment. |
GATT Library | wv586bp8600 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Chapter VIII (Organization). Alendmiets and comments submitted by the Delegation of Australia. Articles 61 and 66 (3). Comment | United Nations Economic and Social Council, June 19, 1947 | United Nations. Economic and Social Council | 19/06/1947 | official documents | E/PC/T/W/203 and E/PC/T/W/177-207 | https://exhibits.stanford.edu/gatt/catalog/wv586bp8600 | wv586bp8600_90050348.xml | GATT_152 | 969 | 6,431 | RESTRICTED
ECONOMIC CONSEIL S/PC/T/W/203
AND ECONOMIQUE 19 June 1947
AND ECONOMIQUE ORIGINAL: ENGLISH
SOCIAL COUNCIL ET SOCIAL
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
CHAPTER VIII (ORGANIZATION)
ALENDMIETS AND COMMENTS SUB!iITTED BY THE
DELEGATION OF AUSTRALIA
ARTICLES 61 AND 66 (3)
COMMENT
The effect of paragraph 3 of Article 66 is that, apart
from the cases provided for elsewhere in the Charter, no waiver
Of obligations is possible unless the Conference determines
criteria and sets up procedures. Moreover, these acts require
a two-thirds affirmative vote of all the Members of the
Organization.
It is the view of the Australian Delegatinn that there
may be cases where special procedures with a special majority
vote are net required, and that in such cases, the ordinary
rules of procedure of the respective organs of the Oreanization
would suffice. It is therefore su-gested that the Conference
should be f ree to determine whether or not particular classes
of questions relating tn release from obligation do or do not
require the determination of criteria and the establishment of
special procedures. Moreover, the Australian Delegation
believes it unwise to require that two-thirds of the whole
membership should be required to give their affirmative vote
in a decision of this kind. The voting requirement in
paragraph 3 of Article 66 removes the right of Members to
adopt a neutral position by abstaining from voting, because
a failure to vote for a proposal automatically becomes a vote
against it.
The Australian Delegation proposes that the substantial
power to release members from obligations in exceptional
circumstances should be stated as a general power of the
Organization (not of the Conference) and placed in article 61.
The question as to which organ of the Organization shall
exercise the power may then be covered in Article 66, paragraph 3.
It is suggested that it should be left permissive for the
Conference te determine criteria and procedures, including voting
procedures. This method of presentation has the following
effects:-
(a) the Conference can study the categories of cases
which it may expect to come before it and decide
- UNITED NATIONS
NATIONS UNIES E/PC/T/W/203
page 2
whether or not special criteria and procedures
are necessary;
(b) elasticity in respect of voting is retained. TLe
rvised Article 61 (c) permits release from
obligations by simple majority, but the Cviference
could decide (again by simple majority) that a
particular category or issues should require
decision by a different kind of majority. There
is an analogy in the United Nations Charter in
Ar-ticle 18(3) where the General Assembly may
decide by simple majority what additional
categories of questions should be decided by two-
thirds majority;
(c) the Conference is left free to decide whether or
not decisions to release Members from particular
obligations may be taken by organs other than the
ConfErence. It might be argued that the present
drafting of Article 66(3) does not permit this
because of the language of Article 66(2)
Accordingly the Australian Delegation submits the
following draft amendment:
Article 61:
Insert following new sub-paragraph in place of existing
sub-paragraph (e) -
"In exceptional circumstances to waive obligations
of Members undertaken pursuant to this Charter;"
The presont sub-pararaph (e) then becomes sub-paragraph (f).
Article 66;
Amend paragraph 3 as follows:-
"Tiae Conferenue may determine criteria and establish
procedures, including voting procedures, for the
making of' decisions under sub-paragraph (e) of
Article 61."
Article 72
COMMENT
The structure of the International Trade Organization
includes expert Commissions which are to advise and perform
other functions on behalf of the Executive Board. It is
proposed that there should be a Commission for each of the
fields covered respectively by Chapter IV, V, Vi and VII.
No Commission has been proposed to embrace the subjects
of Chapter III. The subjects are important among the purposes
of the Organization. Moreover, the Au-tralian Delegation
believes that the practicability of abiding by the rules laid
down in the rest or the Charter will depend to an important degree E/PC/T/W/203
page 3
on the implmentation of Chapter III. It is therefore felt
that the Orariization requires regular advice on the general
economic questions that will arise under Chapter III. The
Economic and Social Souncil and other Organizations have
machinery to review and report upon developments in this
field upon which the I.T.O. can depend for assistance. The
Australian Delegation believes, however, that presentation
to the Estcutive Boerd and Conference or Information and
advice on issues arising out of Chapter III which are relevant
to decisions which have to-be made in the wide field of
commercial and commodity policy calls for technically equipped
personnel within I.T.O. It is essential, for practical
purposes, that information and advice should be related to the
spGcifiC issues which are before the Organization at any given
time.
It is therefore suggested that Commission B consider
whether this need should be met by the creation of a Ceu-nission
on questions of employment and economic activity or by some
other from of machinery.
Article 68
COMMENT
Tise text of Article 68 (in square brackets) provides
for 15 Members of the Executive Board. Alternative B in
Part II c.f tho Report of the New York Administrative 5_b-
Co-à<ittee envisages up to 18 Linabers on certain assumptions
about the number of .L.embers oif the Oreanization, and assuming
u particular method of selecting Members or the Board. The
Australian Delegation Usu:,sts thut Co.naission B consider
whether the Exccutive Bourd should contain u larger nuîr±ber
than 15 Mi~nmbers in the event thàt a system oai simple election
ior a1l L.mbers is agreed upon for incorporatiorL in the Charter.
Aj a basis for discussion, the Au.-tralfan Delegation would
propose 18.
Thu Dwlegutioar suG6csts also that, in the consideration
of Article 68, the type of majority vote required for election
oa Me-bers should be examined. |
GATT Library | td639jd1033 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Chapter VIII. (Organization). Amendments proposed by the French delegation. Article 72 | United Nations Economic and Social Council, June 19, 1947 | United Nations. Economic and Social Council | 19/06/1947 | official documents | E/PC/T/W/205 and E/PC/T/W/177-207 | https://exhibits.stanford.edu/gatt/catalog/td639jd1033 | td639jd1033_90050350.xml | GATT_152 | 235 | 1,739 | UNITED NATIONS NATIONS UNIES RESTRICTED
E/PC/T/W/205
ECONOMIC CONSEIL 19 June 1947
AND ECONOMIQUE ENGLISH
SOCIAL COUNCIL ET SOCIAL ORIGINAL: FRENCH
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND ELOELOYMENT
Chapter VIII. (ORGANIZATION)
Amendments proposed by the French delegation.
Article 72.
Establishment . -
The Conference shall establish a Commission on Economic
Development end Co-ordination, a Commission on Commercial
Policy, a Commission on Business Prectices, end a Commodity
Commission, end may establish such other Commissions as mey
be required. The Commissions shell be responsible to the
Executive lobrd.
N.B. If the proposed amendment is adopted, an additional
Article defining the functions of the Commission on Economic
Development end Co-ordination should be drawn up end inserted
between Articles 74 end 75.
Article 88. Paragraph 4.
4. Each Government accepting this Charter does so in respect
of its metropolitan territory, and such other territories for
which it has international responsibility 5, with the exception
or those territories which are self-governing in respect of
matters provided for by the Charter. In respect of those
territories which are self-governing in matters provided for
by the Charter, esch .,mber shall notify the Secretary-General
of the Unitad Nations of its acceptence or this Charter on
behalf of any such self-governing territory, and the provisions
of this Charter shall become applicable to that territory on
the sixtieth day following the dry of the receipt of such
notification. |
GATT Library | vt448ss5470 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Chapter VIII (Organization). Amendments submitted by the Delegation for New Zealand | United Nations Economic and Social Council, June 19, 1947 | United Nations. Economic and Social Council | 19/06/1947 | official documents | E/PC/T/W/206 and E/PC/T/W/177-207 | https://exhibits.stanford.edu/gatt/catalog/vt448ss5470 | vt448ss5470_90050351.xml | GATT_152 | 164 | 1,083 | UNITED NATIONS
ECONOMIC
AND
SOCIAL COUNCIL
CONSEIL
ECONOMIQU E
ET SOCIAL
RESTRICTED
E/PC/T/W/206
June 19, 1947
ORIGINAL: ENGLISH
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
CHAPTER VIII (ORGANIZATION)
Amendments submitted by the Delegation for New Zealand.
ARTICLE 68, Paragraph 1
It is proposed that the words " not more than" be inserted
between the words "of" and fifteen. The paragraph would then
read as follows:-
"1. The Executive Board shall consist of not more than
fifteen Members of the Organizat ion elected by the
Conference.
ARTICLE 88. Paragraph 4:
It is proposed that the second sentence be ameded to read
as rollows:-
"Each Member shall on behalf or any such self-governing
territory notify the Secretary-General of the United Nationa
of the acceptance of this Charter by such self-governing
territory, 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."
NATIONS UNIES |
GATT Library | pc496np3656 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Chapter VIII (Organization). Amendments submitted by the Delegation for New Zealand | United Nations Economic and Social Council, June 19, 1947 | United Nations. Economic and Social Council | 19/06/1947 | official documents | E/PC/T/W/206 and E/PC/T/W/177-207 | https://exhibits.stanford.edu/gatt/catalog/pc496np3656 | pc496np3656_90050351.xml | GATT_152 | 0 | 0 | |
GATT Library | ht626kx2030 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Chapter VIII (Organization). Annotated Agenda | United Nations Economic and Social Council, June 23, 1947 | United Nations. Economic and Social Council | 23/06/1947 | official documents | E/PC/T/W/210-Rev.1 and E/PC/T/W/208-220 | https://exhibits.stanford.edu/gatt/catalog/ht626kx2030 | ht626kx2030_90050356.xml | GATT_152 | 9,103 | 58,457 | UNITED NATIONS NATIONS UNIES
ECONOMIC
AND
SOCIAL COUNCIL
CONSEIL
ECONOMIQUE
ET SOCIAL
RESTRICTED
E/PC/T/W/210-Rev. 1
23 June 1947
ORIGINAL: ENGLISH
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
CHAPTER VIII (ORGANIZATION)
ANNOTATED AGENDA
Introduction
1. This agenda is to be read in conjunction with the Report of the Drafting
Committee which is hereinafter referred to as "D.C. Report."
2. It incorporates the reservations and comments made by delegations and
recorded in the D.C. Report and all proposals and other comments presented
by delegations up to 1800 hours on Monday, 23 June, 1947 together with comments
and suggestions submitted by the Secretariat. Underlining indicates
additions to, square brackets deletions from the text of the D.C. Report.
3. The following papers containing the proposals and comments made by
delegations which are incorporated in this agenda have already been cir-
culated: -
Australian Delegation
Chinese Delegation
Cuban Delegation
French Delegation
New Zealand Delegation
United Kingdom Delegation
United States Delegation
E/PC/T/W/127 and W/203
E/PC/T/W/221 and W/222
E/PC/T/W/172
E/PC/T/W/205
E/PC/T/W/205
E/PC/T/W/161 and W/202 and Corr.
E/PC/T/W/204.
Amendments, Comments and Suggestions
Article 61 -- Functions
Sub-paragraph (b)
1. It is suggested by the Secretariat that this Function might be made
more positive by amending "to facilitate" to "to develop and facilitate."
2. "The Charter" at the conclusion of this sub-paragraph should, it is
submitted by the Secretariat, read "this Charter."
* The United States Delegation, apart from the comments and amendments
contained in this agenda, intends to submit suggestions with regard to an
appropriate arrangement of the Articles now contained in Chapter VIII and
certain other material which, although not strictly concerned with Chapter
VIII, being rather material for insertion in new Chapter IX, has an of-
fect upon Chapter VIII and may be treated in connection therewith.
.ATIONJS UNIES Page 2
Sub-Paragraph (c)
The United States Delegation proposes the following amendments which
it states are largely consequent upon the amendments already suggested
by the United States Delegation in regard to Chapter IV (Document E/PC/T/
W/123) and are intended to make the article more generel and inclusive.
"(c) To make studies and recommendations for, and promote in-
ternational agreement on, measures designed to expand the volume
and improve the bases of international trade and generally to accom-
plish any of the purposes of the Charter; (a) including measures to
facilitate commercial arbitration and the avoidance of double taxa-
tion, and to assure just and equitable treatment for foreign national
and enterprises (b) [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:]"
(a) There does not seem to be any reason to confine the work of the
organization in developing international conventions to any scope
less than the full field of the Charter.
(b) This broad provision is intended to cover many types of questions
such as the treatment of commercial travellers, discrimination
against foreign creditors in bankruptcy, insolvency or reorganiza-
tion, etc.
Sub-paragraph (d)
For the reason set out above in the introduction to its amendment to
sub-paragraph (c) the United States Delegation proposes the following
amendment to the last phrase of this sub-paragraph:- Page 3
".... and to perform any other function necessary and proper
ta carrying out the [appropriate to the purposes and] provisions
of this Charter."
Sub-paragraph (e)
1. The Australian Delegation proposes to make this sub-paragraph read
as follows, the existing wording becoming a new sub-paragraph (f):-
"(e) In exceptional circumstances to waive obligations of
Members undertaken pursuant to this Charter;"
2. This suggestion is linked up with the Australian Delegation's pro-
posal to amend paragraph a of Article 66 to read "The Conference may
[ by the affirmative votes of two-thirds of the Membes of the Organi-
zation,] determine criteria and [set up] establish procedures, including
voting procedures, for [waiving, in exceptional circumstances, obliga-
tions of Members undertaken pursuant to this Charter] for the making of
decisions under sub-paragraph (e) of Article 61."
3. The explanation given for these two amendments is as follows:-
The effect of paragraph 3 of Article 66 is that, apart from tha cases
provided for elsewhere in the Charter, no waiver of obligations is pos-
sible unless the Conference determines criteria and sets up procedures.
Moreover, these acts require a two-thirds affirmative vote of all the
Members of the Organization.
It is the view of the Australian Delegation that there may be cases
where special procedures with a special majority vote are not required,
and that in such cases, the ordinary rules of procedure of the respective
organic of the Organization would suffice. It is therefore suggested that
the Conference should be free to determine whether or not particular
classes of qestions relating to release from obligation do or do not
require the determination of criteria and the establishment of special
procedures, Moreover, the Australian Delegation believes it unwise to
require that two-thirds of the whole membership should be required to
give their affirmative vote in a decision of this kind. The voting Page 4
requirement in paragraph 3 of Article 66 removes the right of Members
to adopt a neutral position by abstaining, from voting, because a
failure to vote for a proposal autometically bacomes a vote against
it.
The Australian Delegation proposes that the substantial power
to release Members from obligations in exceptional circumstances
should be stated as a general power of the Organization (not of the
Conference and placed in Article 61.
The question as to which organ of the Organization shell exercise
the power may then be covered in Article 66, paragraph 3. It is sug-
gested that it should be left permissive for the Conference to deter-
mine criteria and procedures, including voting procedures. This method
of presentation has the following effects:-
(a) the Conference can study the categories of cases which
it may expect to come before it and decide whether or
not special criteria and procedures are necessary;
(b) elasticity in respect of voting is rotained, The revised
Article 61 (e) permits release frim obligations by simple
majority, but the Conference could decide (again by simple
majority) that a particular category of issues should re-
quire decision by a different kind of majority. There is
an analogy in the United Nations Charter in Article 18(3)
where the General Assembly may decide by simple majority
what additional categories of questions should be decided
by two-thirds majority;
(c) the Conference is left free to decide whether or not de-
cisions to release Members trom particular obligations
may be taken by organs other then the Conference. It
might be argued that the present drafting of Article 66(3)
does not permit this because of the language Article 66(2). Page 5
4. The Secretariat doubts whether the present sub-paragraph (e) is
necessary. Article 61 should deal only with functions not provided
for elsewhere in the Charter and Article 8 when read with Article 1
would seem to cover adequately the function of co-operation with the
United Nations and other inter-governmental organizations for the at-
tainment of the purposes stated. In any event it would appear that the
last phrase of the sub-paragraph should be amended to rend "and the
[restoration and] maintenance of international peace and security" to
conform with the wording of the purposes of the United Nations.
Article 62 -- Structure
The United Kingdom Delegation, in view of the fact that the Tariff
Committee has been converted from an interim to a permanent organ, sug-
gests the following, amendment:-
"The Organization shell have as its principal organe a Con-
ference, an Executive Board, a Taruff Committee, Commission as
established under Article 72 and a Secretariat."
Article 63 -- Membership of
the Conference
Paragraph 1
It is submitted by the Secretariat that this paragraph might pos-
sibly follow the Charter of the United Nations and be amended as fol-
lows:- "The Conference shall consist et all the [representatives of the]
Members of the Organization."
Paragraph 2
The matter of alternates and advisers being thought rather one to
be covered by rules of procedure and following the Charter of the
United Nations, the Secretariat suggests that this paragraph might be
amended to read "Each Member shall [have] be represented in the Con-
ference by one representative. [and may appoint alternates and ad-
visers to its representative to the Conference.] Page 6
Article 64 -- Voting
General Comments
1. The Drafting Committee was instructed of formulate alternative
schemes as regards voting taking account of suggestions concerning weighted
voting and permanent membership of the Executive Board. The Drafting Com-
mittee did not reach may final conclusions on weighted voting. Attention
is drawn to the Report of the Administrative Sub-Committee commonoing onins on
paof the f, thoe.C.t.opor';
2.e Teo delogato wmitted a formula on weighted voting and a notod a no
-n t:,-tmajorities (General Comment (c) to Article -rtic64 i n D.C.Roport)
e United Kingdom Delegate.o.-t DloCL:to.
e who directed attention to the discropancy in voting pro-pancy in 7Ootig pro-
the Charter calls for a twortur caliote on procedurals vuto on procodural
ucations suchf Article agrape 3 or :tticlant doominionsimport. dc "rions
e subject of a sm tho majority vote and reserved his-oto r.nd rosorved is
tion ioe ea i;himment tion(Goncral Corzaenw(d) ie D.C. Report) vas tho
Prench Dilcgato,
es e eh3 Unitodggestss Dclogation surGosta that consideration of this
h the related Articles the rolatod. Lticles66(5), e8 and 69 bo postponod
stantive questions of the tivcbeeuostioeenot thChartor has boon substan-
tially come it will be that tira et will bo approeriato to consider tho Report
Sub-Committee of the Stvf-Corriîmtoo of thDratting Conmittee.
eg t Thmakes the following observationsfolloveiweightedvatio on tho vroighto
ted io Appendices u.,:osio in . ppOndic 1f 2, 7, 8, 9 :nd 10 or D.C. Reporta-
on of weighted voting to all provisions ofng to r.il provisionsof'
e opinion of the Chinese Delegation, not onlyChinosu Dologation, not nly
the oarly stage of industrialization butuCo of induatrialization bu
For instance, decisions regarding the ad-nce, decisions regarding th ad-
visions of tnia 'Ucribrs, tna provisionero echnical assistance to Membors
ustrial development and approvaldustrial dovolopmont and approval
by Members for the carrying :ittcd Ùy !.Ioribors for the carnout of
ment, etc., would be unduly influencedmont, otc., vould bo unduly 4-'flonood Page 7
against the applicant Members by a few Members possessing a large number
of weighted is obvious that, under the various proposod formmulae for
weighted voting, the industrialized countries would have a predominant
voice in deciding issues which may be irrelevant to the economic
importance a Member may possess.
In the draft Charter the interests of Members who would be sub-
stantially affected by any measures proposed or taken by any other
Member are fully protected, since the negotiations would, in many cases,
have taken place between those Members and the Member who was applying
the mensure, in other words, industrialized countries or countries
which have a large interest in foreign trade would be in a better position
to negotiate a settlement than an under-developed country.
The size of foreign trade or national income is not a proper
criterion to judge the effect of decisions of the Organization in relation
to the Members, nor the obligations assumed by a Member, As the exports
of a country may consist of fow commoditions, any decisions' on these
commoditios would mean much more to that country's economy than to a
country which may have a large volume of exports oonsisting of a wide
range of manufactures.
From a technical point of view, no matter what formula for
weighted voting may be suggested, the factors selected would be such as
not to reflect the accuracy of a Member's economics importance; force; for
,foreign trade, national income, percentage of tradein relationin relaton
l income, foreign trade per capita of capital ofpwould, if thered, if thor
tion of any of these factors, add more weight to the industrializedustrializo
than isoe than is appropriate.
eho pueposoeof woightos voting i5 Member an appropriateappropriat
he issues in which its interests can be accurately ceuratel. assessod,
Al. statistics now are a mero record of past rrd of pveperformance and
there eore thor is no ground foe esing thoso saatistise cs a caw on whioh
to judge the economic importance of a Member in the future, say in 1948/1949. Page 8
There can never be a satisfactory base period for these
statisios because the economic position of a country is dynamic
and not static. For example, in the United Kingdom's formula,
the base period selected for foreign trade is 1937 and for national
income, 1940. These base years would not be acceptable to China
because she was already at war. Even taking an average of pre-
war and post-war figures is not a satisfactory solution because, as
had been pointed out, past performances should not be used as
criteria by which to judge a country's economic importance. As
to the figures selected, there can never be an agreement as to
what figures should be selected in all cases so as to avoid any
misrepresentation in the true appraisal of a Member's economic
position. part from the fact that the national income is, in
most cases, but an estimate, the value of currency in relation
to U.S. dollars could nover be accurately ascertained .
The various weights as suggested under the U.K. Brazilian
and French formulae appear to be arbitrarily selected and there
could be endless variations as to the appropriate weight which
should be given to each of the factors mentioned.
Specific Comments and Amendments
1. The United Kingdom Delegation maintaining the proposal for weighted
voting made at the Drafting Committee and the formula it then proposed for
this purpose (sec Appendix I, Page 55 of D.C. Report -- a specimen working-
out of the results appears in appendix II, Page 56) suggests the following
amendments. The annex referred to in the amended article would contain
the formula mentioned . Page 9
"1. Each Member shall have [one vote] in the Conference
the number of votes allocated to it in pursuance of the pro-
visions of Annex ... to this Charter.
"2. Except as [may be] otherwise provided [for]in this
Charter, decisions of the Conference shall be taken by a simple
majority or the [Members present and voting] votes cast."
2. The United Kingdom Delegation considers that the question whether
two-thirds majorities should be provided for in the case of certain
specific questions arising under the Charter, additional to those for
which such provision is already made, will need to be considered. The
United Kingdom Delegation' s interim proposals and contents on this sub-
ject appear in Appendix XII, page 63 of D.C. Report.
3. The United Kingdom Delegation comments that it will be necessary
in making the Rules of Procodure for the Conference to decide how ab-
stentions are to be treated in relation to-voting.
Article 56 -- Powers and Duties of the
Conference
General Comments
1. The two delegates who suggested that paragraph 2 of this article
include a catalogue of those powers which may not be delegated by the
Conference to the Executive Board ( comment upon paragraph 2 in D.C.
Report) were the Australian and French Delegates.
2. The delegate who suggested that the sentence "No one Member shall
be required to pay more than one third of the total expenses of the Or-
ganization for any given budgetary period"' should be added to paragraph
7 (comment upon paragraph 7 in D.C. Report) was the United Stetes Dele-
gate. 'The delegates who agreed with the principle of this amendment
were those of Canada, South Africa and the United Kingdom while the
delegates who considered that no rigid maximum should be laid down in
the Charter for the contribution of any Member were those of Australia,
China and Cuba. Page 10
Specific Comments and Amendments
Paragraph 2
1. The Socretariat suggests that paragraph 2 be amended as follows:-
"The Conference may delegate to the executivee Board authority to exer-
cise 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] by this Charter."
2. The reason for this suggestion can be seen by examining the his-
tory of paragraph 2 of Article 66 in the draft produced at the First
Session. The Conference wes therein authorized to delegate to the Ex-
ecutive Board any of the powers, etc. or the Conference, not of the
Organization, except such powers, etc. expressly conferred upon the Con-
ference. This, however, did not make sense for the only powers, etc.
of the Conference were those expressly conterred. Hence the Drafting
Committee changed the phrase to refar to the delegation of the powers,
etc. of the Organization. But this would appear to go too far for the
Conference is only one of the principal organs each of which is given
by the Charter functions to be exercised in behalf of the Organization.
The Conference should not .ba empowered in Article 66, it would seem, to
transfer such functions, etc. from, for example, the Tariff Committee
to the Executive Board. The only proper way to do this would be by
Article 85 (Amendments to the Charter).
Paragraph 3
1. For the reason previously set out in paragraph 3 of the comment
upon Article 61(e) the Australien Delegation proposes to amend this
paragraph as follows:-
"The Conference may [ by the affirmative votes of two-thirds
of the Members of the Organization determine criteria -and [set
up] establish procedures, including voting procedures, for [wai-
ving, in exceptional circumstances, obligations of Members under-
taken pursuant to this Charter] for the making of decisions under
sub-Paragraph (e) of Article 61." page 11
2, The United States Delegation, in order to make it clear that
voting requirements es well as other procedures are covered, proposes
the following amendment:-
"3. The Conference may, by the affirmative votes of two-
thirds of the Members of the Organization, determine criteria
and set up requirements and procedures [ including voting pro-
cedures] for waiving, in exceptional circumstances, obligations
of Members undertaken pursuant to this Charter."
Paragraph 4
The United States Delegation, in view of the fact that it has al-
ready suggested amendments to Article 30 and 52 covering the substance
of this paragraph, suggests that it be omitted.
Paragraph 5
1. The United States Delegation suggests that consideration of this
paragraph be deferred -- see General Comment 4 on Article 64.
2. The Secretariat points out that "paragraph 2 of Article 34" at the
conclusion of this paragraph should read "paragraph 3 of Article 34."
Paragraph 6
In view of the fact that as this paragraph is at present draft the
time-limit specified by the Conference might be interpreted as not ap-
plying to the forwarding or a statement of the reasons for non-
acceptance, the Secretariat suggests the following redraft of the
second sentence:-
"Each Member shall, within a period specified by the Conter-
ence, notify the Director-General of the acceptance or [in the
case of] non-acceptance [shall furnish]. In the case of non-
acceptence a statement or the reasons therefor shell be forwar-
ded with the notification."'
Paragraph 7
The United States Delegetion suggests the following amendment:-
"7. The Conference shall approve the budget of the Organiza-
tion, and shall apportion the expenditure of the Organizations Page 12
among the Members, provided that no Member sha be required to
contribute more than one-third of the total of such expenditure
without its consent. "
Paragraph 9
The Australian Delegation, in order to make provisions for determina-
tion of procedures required in Chapter IV and to provide that there may be
maximum flexibility regarding the operation of such procedures, proposes
to add the following new paragraph 9:-
"9. The Conference shall determine procedures required by
Chapter 4 except that it may prescribe that such procedures may
be modified by the Executive Board or by the Director General in
certain circumstances."
Article 67 -- Tariff Committee
Paragraph 2
The Sceretariat suggests that the use of the phrase "which have made
effective" right be reconsidered. It might possibly be argued that such
Members comprise only those whose acceptance to the Agreement were deposi-
ted when it came into force and not those who accepted it subsequently but
before the establishment of the Organization. If this interpretation is
thought possible the phrase might be reworded to read "which were parties to."
Paragraph 3
The United Kingdom Delegation, proposes the following amendment:-
"3. Each Member of the Committee shall have [one vote] in
The Committee the number of votes aocated in accordance with
Artice 64, paragraph 1. to the Member of the Organization which
he represents."
Paragraph 4
1. The United Kingdom Delegation proposes the following amendment:-
"4. Decisions of the Committee pursuant to paragraphs 1 and Page 13
2 of this article shall be taken by a two-thirds majority of [its
Members] the votes cast and other decisions by a simple majority
of such votes.
2. The Secretariat points out that if the United Kingdom amendment is
not adopted, it will be necessary to add the words "present and voting"
to the end of the present text.
Article 68 -- Membership of the
Executive Board
Gencral Comments.
1. Attention ls drawn to the Report of the Administrative Sub-Committee
of the Drafting Committee which begins upon page 53 of the D.C. Report Page 14.
and which the Drafting Committee recommended to the Second Session
as a working document.
2. The United Stetes Delegation suggests that consideration of this
article be deferred -- see Genera Comment 4 on Article 64.
Specific Comments and Amendments
1. The United Kingdom Deegation proposes that the present text of
Article 68 be repaced by the foowing
"1. The Executi-!eflBoard sha consist of 17 Members, incudin
tthe 8 Members of chief economoc importance. The Conferencence,
uding these 8 Member, shal elect the 9 additional Mem-al iem-
the Board for terms of there years, subject to the.t to te
ons of paragraph 4. Elective Members of the Board of thoDoerd
oligible for immediate selection. -leii
ference shall usually determine which are the Mem- aré theMem
ef economic importance on the basis of a systeme of u systm
cording to the following schedule:-.- achedule:-
50 million U.S. dollars of external tradeexternal tra;
500 million U.S. dollars of national income;I waticrl inome;
illion of population;on oi Pcpulation
er cent of external trade expressed as aride oxprLussed s a
nal incoms.of nacienia incoll
s of paragraph , points shall be basedpoe2r&zs lil bu bas on
tics for the average of the three fullay oe the thre8 ful
rnational preveling such annual determina- - "-i H ' tirVl1 l determinau
gs shell be basedlerl;,;l(1atinga ;he:l1 be be6ied
cs for 1957 and the calen-taisco :'.O' l9%.? tnd the caln-
entry into force of therte.i. tb; enitry into torco ot the
Ch ar t,
ard, t ti.e r:rst elzct. i' ;h.3 Donrd3 of the Members shall
and 3 others for a termof' e 'r. Ç :r, *i.fl 3 other f'r z tom
of two year . "5. The status of all Members on the Board shall be equal in
all respects.
"6. Each Member of the Executive Board shall have one represen-
tative and may appoint alternates and
representative."
2. As regards paragraph 2 of its new text, the United Kingdom Delegation
points out that the basis proposed for the determination of rating o0
economic importance is the same as thct it proposed under Araicle 64,
for the weighting of votes in the Coni'rence, except that tfe 'basic vote'
is ior this purpose omittfd as Motiveless.
Paragraph 1
1. The Australian Delegetion points out that the text of Article 68
provides for fifteen members oa the Exeuctive Board wfile alternative
B in Part II oa the Report or tho Admfnistrative Sub-Coemittee onvisages
up to eightaon members on certain eesumptions about the nunbor of Members
oS the Organization, andfassuming a particuler method oi selecting nMi-
bers of the Board. The Australian Delegation suggests that the Prepara-
tory Committee might consider whether -the Exëcutive Board should coetain
a larger number thun fi'tean members in tee evfntethat a system of
simple election ror all members is agrefd upon for incorporation in the
Charter. As a basis for discussion, the Australinn Delegatioz would
propose eighteen. The Australian DoleGation sugusts easoethgt the
type of majority vote required for the election of m=bers oa the Board
should be examined.
2. The New Zealand Delegation suggests the following amnndment:-
"1. The Executive Board shall consist of not more than fifteen
llmbers of the OrganizatMen elected by the Conference."
Pnragraph 4
SimiLarly es with paragraph 2loa Araicle 63 the Secretarfut sug-
gesto the following amendments "Each mambel of the Executive Boerd
shall have one repreuentative jInd may appoins alternat[and maydvisers
ta its represontativ27." Page 16
Article 69 - Voting in the Executive Board
The United States Delegation suggests that consideration of this article be
deferred - see General Comment 4 to Article 64.
article 70 - Sessions, Procedure and Officers of the
Executive Board
General Comments
The Drafting Committee drew the attention of the Second Sssion to the possible
desirability of providing for the manner in which the functions of the Excecutive
Board will be exercised while it is not in session.
Specific Comments
Paragraph 2
The Secretariat points out that whereas "immediate re-election appears in
Paragraph 2 of Article 66, "re-election" only appears in this paragraph.
Paragraph 4
The Secretariat sentence that it might be advisable to expand the text of the
first sentence to show that it is the Board which determines whether a matter is of
particular and substantial concern, should that be the intention.
Article 71 - Powers and Duties of the executive Board
General Comments
The United Kingdom Delegation considers that the Executive Board should be
given power to delegate its authrity to a limited number of its members including
its Chairman.
Specific Comments and Amendments
1. The Drafting Committee was of the opinion that the last sentence will be
redundant if the Preparatory Committee decides to include provision for a commission
for industrial development in the Charter.
2. The Chinese Delegation suggests that the following sentence should be deleted:-
"lt shall provide adequate machinery to review the work of the
Organization relating to induatrialization and general economic
development." Page 17
Paragraph 2
The Sacretariat suggests that "provisional agenda" be substituted
for "preliminary agenda ."
Paragraph 3
The Secretariat suggests the following amendment designed to make
this paragraph more positive:-
"3. The Executive Board [may] shall examine and [recommend] make
recommendations to the Conference upon applications for [the] admission
[of new Members] in the Organization."
Article 72 -- Establishment of Commissions
1. The Australian Delegation makes the following comment:-
-The structure of the International Trade Organization includes
expert Commissions which are to advise and perform other functions
on behalf of the Executive Board. It is proposed that there should
be e Commission for each of the fields covered respectively by
Chapter IV, V, VI and VII.
No Commission has been proposed to embrace the subjects of
Chapter III. The subjects are important among the purposes of
the Organization. Moreover, the Australian Delegation believes
that the practicability or abiding by the rules laid down in the
rest of the Charter will depend to an important degree on the im-
plementation of Chapter III. It is therefore felt that the Or-
ganization requires regular advice on the general economi ques-
tions that will arise under Chapter II. The Economic and Social
Council and other organizations have machinery to review and report
upon developments in this field upon which the International Trade
Organization can depend for assistance. The Austrelian Delega-
tion believes, however, that presentation to the Executive Board
and Conference of information and advice on issues rising out of
Chapter III which are relevant to decisions which have to be made Page 18
in the wide field of commercial and ccmmodity policy calls for technically
equipped personnel within the international Trade Organization. It is
essential, for practical purposes, that information and advice should be
related to the specific issues which are before the Organization at any
given time.
It is therefore suggested that the Preparatory Committee consider
whether this need should be met by the creation of a Commission on questions
of employment and economic activity or by some other form of machinery.
2. The Chinese Delegation proposes to add the following words after establish"
in the first line: - "a Commission on Economic Development . "
3. The French Delegation proposes the following amendment and states that if it
is adopted, an additional article defining the functions of the Commission on
Economic Development and Co-ordination should be drawn up and inserted between
Articles 74 and 75:
"The Conference shall establish a Commission on Economic Development
and Co-ordination, 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 Commission shall be responsible to the
Executive Board."
4. The United States Delegation proposes the following amendment which it has
already put forward on page 8 of Document E/PC/T/W/123:-
"The Conference shall establish a Commission on Commercial Policy, a.
Commission on Business Practices, [and] a Commodity Commission, a Commission on
Economic Development and International Investment, and may establish such
other Commissions as may be required. The Commissions shall be responsible to
the Executive Board."
5. The Secretariat points out that perhaps the commencing words "The Conference
shall establish" should be changed to "There shall be" to conform with Article 67.
Article 73 - Composition and Procedure of Commissions
Paragraph 1
The United States Delegation comments that unless ceilings are provided on
the size of international commissions of this nature, there is Page 19
a strong likelihood that they will become too large to be workable and
may thus involve unnecessary expense. On the other hand, if the Com-
missions are kept to moderato size, the tendency for Commission members
to regard themselves as representatives rather then experts might be
lessened. The United States Delegation therefore proposes the following
amendment: -
"1. Commissions shall be composed of not more than seven,
persons chosen by the Executive Board and qualified by training
and experience to carry out the functions of the Commissions in
accordance with the purposes of the Charter."
Paragraph 4
The Secretariat suggests the follwing amendment :-
"The Chairman of [each] a commission shall be entitled to
participate, without the righte to vote, in such of the delibera-
tions of the Executive Board and of the Conference as are of
concern to the commission."
Paragraph 5
The delegates who thought that this provision was redundant in view
or the provisions of Article 81 (comment in D.C. Report) were those of
Australia and South Africa. The Secretariat agrees with this view.
Article 74 -- General Functions Of Commissions
1. The United Kingdom Delegation comments upon Articles 74-77 that it is
not clear whether the Commission can initiate studies, advice and recom-
mandations or whether then can only act on the instructions and within the
terms of reference assigned to then by the Conference or the Executive
Board. It is assumed that the former is intended, and that htis will be
clarified during the discussion that will be necessary on the subject of
the Commissions and particularly of the Commission on Restrictiva Busi-
ness Practices.
2. The Secretariet points out that
(a) as commissions are responsible to the Executiive Board it may Page 20
be as well to delete the reference to assignment of functions to them by
the Conference;
(b) The reference to functions in 'connection with the settlement of
disputes may need to be reviewed after Article 86 has bean examined; and
(c) as a matter of drafting, the second sentence may be deleted and
the first sentence redrafted as follows: "In addition to functions
conferred upon them elsewhere in this Charter the Commissions shall
perform, etc. "
Article 75 - Functions of the Commission on Commercial Policy
1. The Chinese Delegation proposes to substitute the following text for
Article 75 which would then become the text of Article 76:-
"Article 75
"Functions of the Commission on Economic Development
"The Commission on Economic Development shall have the following
functions:
(a) to facilitate the co-operation of the Members wiht one another, and
with the Economic and Social Council of the United Nations and
appropriate intergovernmental organizations in the promotion of
industrial and general economic development,
(b) to advise and make recommendations to the Execuitve Board on all
matters falling within the scope of Chaptter IV."
2. The Australian Delegation proposes to add an article defining the functions
of the Commission on Economic Development as follows:-
"The Commission on Economic Development shall have the following
functions -
(a) to advise and make recommendations to the Executive Board on all
matters relevant to the operation of Chapter IV. Page 21
(b ) to develop and recommend too the Executive Board policies
and programmes for the carrying out of the functions and .ns and
ibilities of the Organization specified in1nCcjPjd h'
thanter I-.
ian Delegation, however, proposes to insert this articlecrt thls aLticlc
ent Articles 77esent Articleticle 77A. as Ar`ic1c ?7.,
ariat suggests that the introductory words should beor', .,ord: shoud bc
he functions of the Commission on Commercial policysion on Co.unerciril)olicy
shill include:
(a) advising r,, etc ."
ted for Articles ns are suc,<,sted for Z'rticle76 und 77.
r to Article 76 and 77 the SecretariatArtioleu 76 and 77 the Secretaiat
hould precede sub-paragraph (7r) should precode sub-pir',rrt (a).
at subThe Seorotariutmight be bettersub-paragraph (a) nii ht be bette
vtordod QSfollows :-
ations to the Executive Boardamendatiorn to the Execubiva ;3oad
scope of Chapter V;ling within tlie sconop of Chapt;r V;
mmendations regarding the ar!d make reco-uL;enrdations regtrd-rh tho
eorr.wroyal policy aspectsinvolved in the excrcise bv the
rter:nisatiron of' 1s3 functions undor this Char-
"(o) te develop . ...etc."
ilarly reworded.) of Article 76 mi-ht bc sisnilarly recorded
mission 77 -_ Functiors o"f :.c Commodity v_ Carrinlssion
Tfe Socretariut pointe out that sub-paraUraph (b oa Article 77
of Article 75 anddhe 4orresrsoridir.f; su';-pira-rar:h oi' article 7F and
al policy ase suoh phrase as `and rorpxrdingthe coi-mercial policy a-
ation of itsposals involvingtheexcroise by the Organization of its Page 22
functions under this Chapter" as is used in the latter articles appears
in the former. It may be desirable to make the three articles uniform
in this respect.
Article 79 -- The Director-General
Paragraph 2
1. The United States Delegation comments that unless the responsibility
for budget preparations is clearly upon the Director-General, experience
has shown that this matter "may fall between two stools." The regulations
to be approved by the Conference under paragraph 1, which are more flexible
in their nature, can contein whatever provisions may be necessary in this
respect. It is pointed out that the Director-General is, in any case,
under the supervision of the Board.
2. For these reasons the United States Delegation proposes the following
amendment of the last sentence:-
"He shall present though the Executive Board an annual report to
the Conference on the work of the Organization and shall [ in con-
sultation with the Executive Board] prepare the budget or the Or-
genization for submission to the Conference."
Article 81 -- Relations with Other Organizations
Paragraph 1
1. The delegates who wished to delete the words "by the Director-General"
(comment in D.C. Report ) were those of Australia and South Africa. The
delegate who opposed this proposal was the French delegate.
2. The United Kingdom Delegation comments that the words "concluded by
the Director-General" are unnecessary since the relationship agreement
will be negotiated by a committee appointed by the Conference and it will
be signed by the negotiators and brought into force upon approval by the
Conference and by the General Assembly of the United Nations.
3. The Secretariat suggests that the words "This relationship shall be
effected through agreement with the United Nations under Article 63 of Page 23
the Charter of the United Nations" should be deleted as unnecessary.
Paragraph 5
The United States Delegation suggests that the words "and may in-
vite them to undertake specific tasks" redundent and proposes that
it be omitted.
Paragraph 4
The United States Delegation proposes that "international organiza-
tion(s)" wherever used in this paragraph should be changed to "inter-er-
ernmental organizationion(ss" oenco the Orgaaizttion slouJd be concerned
oali wtth the absorption of publorganizations.u.
ticlele 82 -Intertenational Responsibilitieo cf Personnel
The Secretaaict ggests that this A Article might be transferred to
SectioF Y -- Secrat?aieto conform with the tharrangeneat of the Charter
of the Unetod Nations.
Irticle 84 -- atetus of the grnizationiO
Paragraph 3
The Secrateriat suggests that in view of the fact that negotiations
aimed at the preparation of a uniform convention ragerding the prilege,el
and munities of the heUnited Nations and the specialized agencies are
preeoeding beetwen theeSocretary-General and sucagencies, this ispare-
graph shouldebamended to read as follows:ws-
"3. Su legal capacity, p privilegea end immunities shall be
fined in an agreement to be prepared by the Organization in con i-
suatntion with theeS&cretary-Genarml of the United Nationa end
concluded betweethe Members."er .
The graaterph would then be infornity with Art article 68 of the Con-
stitution of World Health Organization.zetin.
e rticleAm5 -ments to the to theCharter
1. ThgateleZuteeservederveo3 his positgar reourding the phrasing of
the first paragracomment in nt in D.C. Report) was the French Delegate. Page 24
2. The United states Delegation proposes the following amendments
to paragraphs 1 and 2:-
"1. Any amendments to this Charter which does not involve a
(a )
change in the obligations assumed by Members [new obligationsigations
art of Members] shall become effective upon receiving theeiving te
approval of the Conferencaffir the affSmative votes of two-thirds
embers. brs.
"2. .ny amendment to this Charter which involves agchance in
bligations assMembers [ers /newgabli4etions en aho port
mber] shall, after receiving the approval of the of thConfer en)e,(b>
becofeceflt;tive fcr eemh MLaber accgptinSamee meendnent, apon ec-
ceptance on the part of two-thirds efMtmbersriaer, end thereafter
ach iumaining Member on acceptance by it. The Conference mayni'ernce Me
hat any amendment under ndre*nt undahisis of such aii of such
any Member which has not hieh hFs noaccepted it within a period
y the iedfVy th* Coallrbnce shull he rwquired to vmthdraw froi the
n; panization;arovided th.t the Canfeby nce mey, m the affirnative
votes of two-thirembers he Murubegsof the OrEaeization, doter-
mine tbe conditionc under weiuh ehis ruay be waived withwaived with
rey such Member uCh! [ The (c) F une Conference may determine that
any Menbr which haspted accautedmentemeneznent ndir this paragraph
within apecified by the ud fereheConrerllce, sha21 cease to be a
the Organization. In the absence of such determination.]rzn.inatinj7
. Meepting an amendment shall, notwithstanding the prostonding thepro-
raph 1 of Articlelrcph 1 of' Arti 89, be free to withdraw from the
Orgaatzation uuon tftv expiration ol six months from the day on
which writtLn notica of such withdruwal is received by the Director-
General .
Notes:
(a) This change covers cases where amendments change existing ob-
l astions az '-ill a when they add new obligations. Page 25
(b) This change will require that amendments which change the
obligations of Members must be approved by the Conference before
they are submitted to the Members. This is not covered under
the New York draft .
(c) This amendment does not change the substance of the existing
text to any important extent, except that it gives to the Conter-
ence more flexibility in dealing with Members which tail to accept
amendments. This power is very similar to that already contained
in paragraph 3 of Article 66.
3. The Cuban Delegation proposes to insert a new Article 85 A roading
as follows:-
"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 rea-
pect to matters affecting the operation of the Charter, and shall
in the course ot 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, The same wording as the present Article 35, paragraph 2,
substituting in the third sentence of this paragraph the word
"Chapter" by the word Charter."
Article 86 -- Interpret'tion and S&etlement ot DisDptes
1. The deloeatbewho opposed the text of pareareabh 2, 3 and 4 as pro-
duced at the Yiras &Sesion on the ground'that the distinction between
Jjusiciable ead other issues wea untenable and thrt nulilficeaion ead
impairment and JItaepretation and settlement oefdispoutesboeontgd to-
gether (General Comment in D.C. Ruerot) was tho Unitce KXingdoi Delegate.
2,. The Cuban D*eePgaion sug"getesthat in the third line of pareagrah 2
the word "shall" should be entered to "1may ond that the following sen-
ten¢c shOold be added at the conclusion dof tha pareagrap :- The application
of the procedure in Article 85 A does not exclude the initiation of the Page 26
procedure set forth in this paragraph, as far as it is applicable to
the case, provided the first mentioned procedure has been terminated."
The Cuban Delegation also suggests that paragraphs 3 and 4 should be
made into a new article 86A. These proposals of the Cuban Delegation
are designed to regroup the remedies created by the Charter for settling,
either amicably or by a legal procedure, questions or disputes arising
out of the wording or the application of the Charter, or which may de-
velop by actions directed against the purposes of the Charter or situa-
tions having the effect of nullifying or impairing its objects.
3. The United Kingdom Delegation suggests that the following text be
substituted for the present text of Article 86:-
Article 86
" Nullification, Impainment and Disputes
"1. Nothing in this Article shall be construed to limit or exclude
other procedures established in this Charter for consultation over
and settlement of complaints or difficulties arising, out of its
operation.
"2. If any Member considers that another Member has adopted any
measure, whether or not it constitutes a breach of an obligation
under this Charter, or that any situation has arison, which has
the effect of nullifying or impairing any object of this Charter,
It may invite the Members concerned to consult thereon and they
shall endeavour to reach a satisfactory settlement.
"3. If no such settlement can be reached, the matter may be re-
ferred by an interested Member to the Executive Board, which shall
give a ruling thereon.
"4. 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 of the majority confirm
or amend or reverse the ruling, provided that
(i) it may, as appropriate, consult with the Economic and
Social Council of the United Nations and with any other Page 27
interested inter-governmental organizations; and
(ii) if the matter involves dispute as to the interpre-
tation of the Charter, it shall at the instance of not
less than one-third of the Members request from the Inter-
national Court of justice an advisory opinion thereon and
any procedings for hte review by the Conference of such a
ruling of the Board shall thereupon be stayod until the
opinion of the Court is delivered, and the Conference, when
it finally reviews such ruling, shall adopt and be bound by
the advisory opinion delivered by the Court. This Conference -
after reviewing the ruling may make such further recommenda-
tions to the Members concerned as it thinks fit.
"5. If it considers, in any case brought before it in pursuance of
this article , that a breach of obligations under this Charter or
that nullification or impairment of any object of this Charter has
taken place or a character serious though to justify such action,
the Conference may authorize any Member or Members to suspend the
application, to any other Member or Members of such obligations or
concessions under the Charter as it may specify. If such obliga-
tions or concessions are, in fact, suspended, any affected Member
shall then be free to give notice of withdrawal from the Organi-
tation. Such notice must be given to the Organization in writing
and within 60 days after such action is taken, and the Member's
withdrawal shall affective 60 days after the receipt by
the Organization of the said notice.
"6. The Executive Board and the Conference shall respectively
make rules of procedure for giving effect to this Article.
Article 83 -- Entry into Force
Paragraph 1
1. The United Kingdm Delegatioon proposes to transfer this paragraph
to the very and of the Charter and to amand it as follows :- Page 28
"The original English and French texts 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 [shall] will furnish certified copies
[thereof] of both texts to all interested Governments.
"Done at this day of
194 in the English and French languages, both texts having equal
force. In witness whereof the undersigned duly authorized to that
effect have signed the present Charter, and have affixed thereto
their seals."
2. The Uniited Kingdum Delegation makes the following comments upon
these amendments:-
(a) The provision of paragraph 1 of the Drafting Committee text
of tris Article as to deposit of the original text with the United
Nations is cut of place and should be transferred to the very and
of the Charter, immediately before the signature formula.
(b) It is proposed to include the provision for signature which
was regular in pre-war conventions and treaties. Such signatures
will not, of course, bind any signatory Government pending its ac-
ceptance, but are necessary for the purpose of authenticating the
agreed text.
3. The United Kingdom Delegation suggests that the following paragraph
should be substituted for paragraph 1:- "This Charter shall remain open
for signatures until 194 - and shall be subject to accep-
tance."
Paragraph 2
1. The United Kingdom Delegation suggests the following re-draft of
this paragraph:.-
" Each Government accepting this Charter shall deposit an
Istrument of acceptance with the Secretary-General of the
United Nations who [will] shall inform all Govenments repre-
sented at the United Nations Conference on Trade and Employment Page 29
and all other Members of the United Nations [which were ] not so
represented [at that Conference] of the [day] date of deposit of
each instrument of acceptance and of the [day] date on which this
Charter enters into force under paragraph [3] 4 of this Article.
After this Charter has entered into force, each Government which
has deposited an instrument of acceptance shall thereupon become
a Member of the Organization.
2. The United Kingdom Delegation proposes to insert the following new
paragraph between the present paragraphs 2 and 3:-
"The Government of any country whose proposed Membership of
the Organization has been approved by the Conference under para-
graph .. of Articlc 2 shall deposit an instrument of accep-
tance with the Secretary-General of the United Nations, and shall
thereupon become a member of the Orgenization."
Paragraph 3
1. The delegate who proposed to re-insert the original text of para-
graph 3 of article 78 of the United States-Draft Charter (document in
D.C. Report) was the United Kingdom Delegate.
The United Kingdom Delegation proposes the following redraft of
this paragraph:-
"3. This Chapter shall enter into force on the sixtieth day fol-
lowing 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 instrument of acceptance
of each other accepting Government shall take effect on the six-
tieth day following the day on which [the instrument of such ac-
ceptance] it is deposited, Provided that, if this Charter shall
not have entered into force by 194_, any of the
Government which have made effective brought into force the page 30
General Agreement on Tariffs and Trade dated 194,
together with any other Government represented at the United
Nations Conference on Trade and Employment , may agree to bring
this Charter into force among themselves in accordance with ar-
rangements which they may agree upon. Any instrument of accep-
tance 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 ."
Paragraph 4
1. The French Delegation proposes the following amendment;
"4. Each Goverment 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]. In respect of those territories which are
self-governing in matters provided for by the Charter, each Mem-
ber shall notify the Secretary-General of the United nations of
its acceptance of this Charter on behalf of any such self-
governing territory, and the provisions of this Charter shall be-
come applicable to that territory on the sixtieth day following
the day of the receipt of such notification."
2. The New Zealand Delegation proposes' the following amendment to the
second sentence: "Each Member shall, on behalf of any such self
governing territories, notify the Secretary-General of the United
Nations of [its] the acceptance of this Charter [on behalf of any by;:
such self-governing territory, and ehu prosirisnz of thiCharter shallL i
omepzn applicable to thterritory on the sixtieth day following thethe
day of the receipt of such notification."
3. The United Kingdom Delegation proposes that the following two
paragraphs should replace paragrph 4:- Page 31
"Each Government accepting this charter does so in respect of
its metropolitan territory and of any other territories for which
it has International responsibility: Provided that it may at the
time of acceptance declare that any separate customs territory
for which it has international responsibility possesses full
autonomy in the conduct of its external commercial relations
and other matters provided for by the Charter, and that accep-
tence dots not relate to such territory.
"Esch Member may, at any time, accept this Charter in ac-
cordance wïth paragraph 2 of this Article on behalf of any such
separate customs territory willing to undertake the obligations
of the Charter. Acceptance on behalf of such territory shall
take effect on the sixtieth day following the deposit of the
instrument of acceptance."
4. The United Kingdom Delegation explains its amendment of paragraph
4 as follows:-
(a) These paragraph follow from the draft Recommendation of the
Preparatory Committee proposed in paragraph 6 of the Executive
Secretary's note E/PC/T/Del.39. of which the last paragraph con-
templates that invitations to the Trade and Employment Conterence
would be sent to those customs territories which are not respon-
sible for the full conduct of their international relations but
in respect of which the Governmant of the metropolitan country,
being a state which is a Member of the United Nations, or, if not,
receives an invitation, declares that they possess full autonomy
in the conduct of their external commercial relations and other
matters provided for by the Charter. The United Kingdom Delega-
tion favours this proposed recommendation and will in due course
propose a redraft of Article 2 (Membership) to take account of it.
(b) The words "willing to undertake the obligations of the
Charter" have been re-inserted from the London text. They were Page 32
omitted by the Drafting Committee on the assumption, which the
United Kingdom Delegation considers mistaken, that they were
unnecessary.
Article 89 -- Withdrawal and Termination
Paragraph 1
1. The United Kingdom Delegation proposes to add the phrase "or para-
graph 2 of Article 85" after 'Article 35" and contents that the contin-
gency contemplated in the last sentence of Article 85 (2) namely, that
a Member which does not accept an amendment of -the Charter involving new
obligations may withdraw from the Organization clearly needs to ba pro-
vided for in this paragraph.
2. Consequential upon its proposal to redraft paragraph 4 of article
88, the United Kingdom Delegation proposes the following amendment:-
"1. Without prejudice to the provisions . . . any Member may
withdrew from the Organization either on its own behalf or on
behalf of a separate customs territory, [which is at the time salf-
governing in respect of matters provided for by this Charter] in
respect of which it has accepted the Charter under paragraph 6 of
Article 88 at any time . . . Director-General."
Paragraph 3
The United States Delegation suggests that this paragraph should
be replaced by the following paragraph; the present text becoming a
new paragraph 4:-
"3. without prejudice to any other provision of this Charter
and subject to such conditions as it may deem appropriate, the
Conference may require any Member which has persistently violated
provisions of this Charter to withdraw from the Orgranization."
New Article 90 -- Registration
Article 102 of the Charter of the United Nations reads: Page. 33
"1. Every treaty and every international agreement entered into
by any Member of the United Nations after the present Charter
comes into force shall as soon as possible be registered with
the Sacretariat and published by it.
" 2. No party to any such treaty or international agreement
which has not been registered in accordance with the provisions
of paragraph 1 of this Article may invoke that treaty or agree-
ment before any orgen of the United Nations."
2. Paragraph 2 of Article 3 of the Regulations regarding Registra-
tion of Treaties reeds:
"2. Registration effected in accordance with article 4 of these
regulations relieves all parties of the obligation to register."
3. Paragraph 1 of Article 4 -of the Regulations reads;
"1. Every treaty or international agreement subject to article
1 of these regulations shall be registered ex officio by the
United Nations in the following cases:
"(a) Where the United Nations is a party to the treaty or
agreement;
"(b) Where the United Nations has been authorized by the
treaty or agreement to effect registration."
4. To relieve governments of the obligation of registration the fol-
lowing article is suggested by the Secretariat :
"Article 90
"Registration
"The United Nations is authorized to effect registration of this
Charter as soon as it cones into force". |
GATT Library | dt956hf3321 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Chapter VIII - Organization. Corrigendum to -Amendments proposed by the United Kingdom Delegation - Docu ment E/PC/T/W/202 | United Nations Economic and Social Council, June 23, 1947 | United Nations. Economic and Social Council | 23/06/1947 | official documents | E/PC/T/W/202.Corr.1 and E/PC/T/W/177-207 | https://exhibits.stanford.edu/gatt/catalog/dt956hf3321 | dt956hf3321_90050347.xml | GATT_152 | 71 | 501 | UNITED NATIONS
ECONOMIC
AND
SOCIAL COUNCIL
CONSEIL
ECONOMIQUE
ET SOCIAL
RESTRICTED
E/PC/T/W/202. Corr .1
23 June 1947
EIGLISH ONLY
SECOND SESSION OF THE. PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
CHAPTER VIII - ORGANIZATION
Corrigendum to -Amendments proposed by the
United Kingdom Delegation - Docu-
ment E/PC/T/W/202
Page 2, Article 68, paragraph 6, lines 2 and 3,
Delete "Dlternstives for the" end substitute "alternates
and.'
NATIONS UNIES |
GATT Library | pf031gz5173 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Chapters I (purposes) and II (membership). Annotated Agenda | United Nations Economic and Social Council, July 8, 1947 | United Nations. Economic and Social Council | 08/07/1947 | official documents | E/PC/T/W/238 and E/PC/T/W/236-260 | https://exhibits.stanford.edu/gatt/catalog/pf031gz5173 | pf031gz5173_90050388.xml | GATT_152 | 2,497 | 16,913 | UNITED NATIONS NATIONS UNIES RESTRICTED
E/PC/T/W/238
ECONOMIC CONSEIL 8 July 1947
AND ECONOMIQUE ORIGINAL:ENGLISH
SOCIAL COUNCIL ET SOCIAL
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
CHAPTERS I (PURPOSES) AND II (MEMBERSHIP)
ANNOTATED AGENDA
Introduction
1. This agenda is to be read in conjunction with the
Report of the Drafting Committee which is hereinafter referred
to as "D.C. Report."
2. It incorporates the reservations and comments made
by delegations and recorded in the D.C. Report and all
proposals and other comments presented by delegations up
to 1800 hours on Monday, 7 July, 1947. Underlining indicates
additions to, square brackets deletions from the text of
the D.C. Report.
3. This agenda contains the proposals and comments, except
the proposal made by the United States Delegation to re-arrange
the Draft Charter, which are contained in the following
documents which have already been circulated:-
Belgian-Luxembourg Delegation E/PC/T/W/176
South African Delegation E/PC/T/W/234
United Kingdom Delegation E/PC/T/W/235
United States Delegation E/PC/T/W/236 and Corr. E/PC/T/W/238
page 2
Amendments, Comments and Suggestions
Article 1 -- General Purposes
Preamble and Sub-paragraph 1
1. The Belgian-Luxembourg Delegation proposes the following
amendment to the preamble and paragraph 1:-
"1. 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 as an agency
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 Nations and particularly in Article
55(a) thereof, namely, higher standards of living,
full employment, and conditions of economic and
social progress and development.
2. For the furtherance of these purposes the Organization
will seek:
[(b)] (a) [for] to promote the long term expansion
of the production, exchange and consumption of goods,
.....etc."
2. The South African Delegation proposes the following amendment
of the preamble and sub-paragraph 1:-
"[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: E/PC/T/W/238
page 3
1. To promote national and international action:
(a) 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
employment, and conditions of economic and
social progress and development;
(b) For the expansion of the production, ex-
change and consumption of goods, for the
achievement and maintenance in all countries
of high and steadily rising levels of effect-
ive demand and real income, for the develop-
ment 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 in inter-
national commerce;
(c) To avoid excessive fluctuations in world
trade and contribute to a balanced and expand-
ing world economy.]
RECOGNIZING that in the pursuit of world peace the United
Nations are determined to promote economic and social progress, and
BEING DBTERMINED in the field of trade, industry and social ad-
vancement to realize the objectives, set nut in the Charter of the
United Nations.
THE STATES party to the present Charter hereby establish an
INTERNATIONAL TRADE ORGANISATION
For The Purpose of
Resolving economic and social problems by co-operation and
Attaining higher standards of living, full employment and
conditions conducive to economic and social progress and develop-
ment, and,
To This End, of
Promoting national and international action, designed
1. tn encourage and maintain in all countries higher and steadily
expanding levels of production, exchange and consumption of
goods, as well as of effective demand and real income; E/PC/T/W/238
page 4
2. to foster and ensure the development and economic use of
the resources of the world,
3. to reduce tariffs and other barriers to trade and to
eliminate all forms of discriminatory treatment in inter-
national commerce;
4. to obviate excessive fluctuations in world trade,thus
contributing towards an expanding and balanced world
economy;"
2. The United States Delegation proposes the following amendment
to the preamble and sub-paragraph 1:
"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 Organisation though which
they will work for the fulfilment of the purposes set out
hereunder:
1.]
undertake to promote national and international action for
the fulfilment of the following purposes:
[(a) 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
employment, and conditions of economic and social progress
and development;
(b) For the expansion of the production, exchange and con-
sumption of goods, for the achievement and maintenance in
all countries of high and steadily rising levels of effect-
ive demand and real income, for the development of the
economic resources of the world, and for the reduction of E/PC/T/W/238
page 5
tariffs and other trade barriers and the elimination of
all forms of discriminatory treatment in international
commerce;
(c) To avoid excessive fluctuations in world trade and
contribute to a balanced and expanding world economy.]
1. To raise standards of living, assure a large and steadily
growing volume of real income and effective demand, and contri-
bute to a balanced and expanding world economy, through
measures designed to provide full employment and increase the
production, exchange and consumption of goods.
2. To develop the economic resources of the world by en-
couraging the international flow of capital for productive
investment and otherwise assisting the industrial and general
economic development of all countries, particularly of those
still in the early states of industrial development.
Sub-Paragraph 2
1. The South African Delegation proposes the following amendment
to sub-paragraph 2:-
"[2.]5. to further the enjoyment, on equal terms, by all
Member Countries [on equal terms] of access to markets, of
the world and to the products and productive facilities which
are needed for their economic [prosperity and] development
and prosperity."
2. The United States Delegation suggests the following amendment
to sub-paragraph 2:-
''[2.]3. 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." E/PC/T/W/238
page 6
Sub-Paragraph 3
1. The South African Delegation proposes the following amend-
ment to sub-paragraph 3:-
"[3.] 6. to encourage and assist in the industrial and
general economic development of [Member countries] one
another, particularly of those Member Countries who still
are in the early stages of industrial development."
2. The United States Delegation proposes the deletion of this
sub-paragraph and the insertion of the following sub-paragraph:-
"4. To reduce tariffs and other barriers to trade, to
eliminate all forms of discriminatory treatment in inter-
national commerce, and to enable all countries by thus
increating the opportunities for their trade on a mutually
advantageous basis, to avoid recourse to measures which
disput world commerce, reduce productive employment or
retard economic development."
Sub-Paragraph 4
1. The South African Delegation proposes the following amend-
ment to sub-paragraph 4:-
"[4.]7. to encourage amongst Member Countries a fuller
understanding of one another's problems and thus to facili-
tate, through consultation and co-operation, the solution
of problems in the field of international trade, employment
and economic development [through consultation and colla-
beration among Members] and, finally,"
2. The United States Delegation proposes the following amendment
to this sub-paragraph:-
"[4.] 5. to facilitate the solution of problems [in the
field of] relating to international trade, including problems
of employment, [and] economic development, international
investment, commercial policy, business practices and commo-
dity policy through consultation and collaboration among
Members." E/PC/T/W/238
page 7
Sub-Paragraph 5
1. The South African Delegation suggests the following amendment
to sub-paragraph 5:-
"[5.]8. to enable Member [s]Countries, by the increasing
[the] opportunities [for]offered to their trade and economic
development on a mutually advantageous basis, to [avoid
recourse to]abstain from measures which would disrupt world
[commerce]trade, reduce productive employment [or]and retard
economic progress."
2. The United States Delegation proposes that this sub-paragraph
should be deleted but suggests that the following words should be
added at the end of Article 1 in a new paragraph:-
"In order to effectuate these purposes, the States pledge
themselves to accent the obligations that are set forth in
this Charter and they hereby establish an International
Trade Organisation through which Members will co-operate
to this end." E/PC/T/W/238
page 8
Chapter II - Membership
Article 2
1. The United Kingdom Delegation proposes to substitute the
following text for the present text of Article 2
"1. The following shall be Members of the Organization
(i) States represented at the United Nations Conference
on Trade and Employment, whose Governments accept this
Charter in accordance with Article 88 (2) or, if this
Charter shall not have entered into force by .....194..,
agree to bring it into force in accordance with the pro-
viso in Article 88 (4);
(ii) any State, Member of the United Nations, not rep-
resented at the United Nations Conference on Trade and
Employment, whose Government accepts this Charter in
accordance with Article 88 (2);
(iii) any State not a Member of the United Nations and
not represented at the United Nations Conference on Trade
and Employment, whose Government accepts this Charter in
accordance with Article 88 (3) after its proposed Member-
ship has been approved by the Organisation.
2.The following not being entitled to Membership under para-
graph 1 of this Article, shall become an Associate :
(i) Any separate Customs territory invited to the United
Nations Conference on Trade and Employment, upon notifica-
tion by the competent Member to the Director General,
provided that it has been declared by the competent Member
to be autonomous in the conduct of its external commercial
relations and the other matters provided for by this
Charter, and that the competent Member has accepted this
Charter on its behalf in accordance with the provisions
of Article 88 (6); E/PC/T/W/238
page 9
(ii) any separate Customs territory, not
United Nations Conference on Trade and Employment, which is
declared by the competent Member to be autonomous in the
conduct of its external commercial relations and of other
matters provided for by the Charter, and on behalf of which
the competent Member has accepted this charter in accordance
with the provisions of Article 88 (6) after its
as an Associate has been approved by the Organisation
3. The Organisation shall determine the conditions on which
(a) trust territories administered by the United Nations:
(b) the Free Territory of Trieste shall participate in the
Organisation.
4. The rights and obligations of Associates shall be determined
by the Organisation."
The United Kingdom Delegation makes the following comments on
proposed amendment
1. In recent discussions in the Chairman's (Heads of Delega-
tions) Committee it has been recognised that there are certain
separate customs territories possessing full autonomy in the
conduct of their external commercial relations and the other
matters provided for by this Charter. Such territories are
Burma, Ceylon and Southern Rhodesia. The United Kingdom
believes that it is highly desirable that such territories
should undertake and implement the obligations of I.T.O.,
since ideally the International Trade Organization should in-
clude all countries which participate appreciably in World
Trade. Since they are self-governing in respect of those
obligations, the metropolitan country having formal inter-
national responsibility for them cannot undertake the obliga-
tions on their behalf or secure their implementation. Al-
though the metropolitan country acts as the channel through
which their acceptance is deposited, the decision to accept
the obligations and the power to implement them rests entirely
with the Governments of the separate customs territories.
The United Kingdom Delegation is therefore of the opinion that
it is equitable, and indeed necessary, that they should be
able to participate in the work of the Organisation whose
obligations they have accepted. E/PC/T/W/238
page 10
2. The United Kingdom Delegation therefore proposes that such
territories should be associates. This preserves a
distinction in the Charter between independent sovereign
states and territories which have not yet attained that status.
In the opinion of the United Kingdom Delegation it would be
for the Organisation when set up to determine the exact status
of associates (see paragraph 4 of the proposed amendment).
3. Paragraph 1 of the proposed re-draft deals with independent
sovereign states, under three categories:-
(i) States invited to the World Conference which
automatically become members under the procedure
laid down in Article 88(4).
(ii) States, Members of United Nations, which do not
accept the invitation to the World Conference, but
later decide to adhere to I.T.O. These can be-
come members by depositing an instrument of
acceptance in accordance with Article 88(2).
(iii) States, not Members of the United Nations which,
either because they did not accept or because
they did not receive an invitation, did not attend
the World Conference, but which later wish to ad-
here to I.T.O. This category of states have to
obtain the approval of the Organisation before
becoming members.
4. Paragraph 2 deals with separate customs territories not
fully independent, but possessing full autonomy in the con-
duct of their external commercial relations and the other
matters provided for by the Charter, in two categories:-
(i) Those invited to the World Conference, which if
they so desired, would automatically become members
when the metropolitan state having international
responsibility for them complied with the procedure
laid down in Article 88(6).
(ii) Those not invited to the World Conference which
could only become associates after the Organisation
had approved their application.
5. The United Kingdom Delegation considers that it will be
necessary to make special provision not only for trust
territories administered by the United Nations but also for
the Free Territory of Trieste when the Trieste Statute
enters into force.
6. The references to Article 88 in this note are to the
amended version of that Article proposed by the United
Kingdom Delegation (see E/PC/T/W/202).
3. The United States Delegation suggests that the word
"countries" in paragraphs 1 and 2 should be changed to "States" to
conform with the provisions of the United Nations Charter, with E/PC/T/W/238
page 11
the constitutions of most other specialized agencies and with
Article 1.
4. The United States Delegation suggests that the following
words should be added to the end of paragraph 2:- "and any
amendment thereto which shall have become effective as of the
time of such acceptance."
5. The United States Delegation comments upon its amendment to
paragraph 2 that although Article 85 contemplates the possibility
that Members may fail to accept all amendments and still remain
within the Organisation, it does not seem desirable to permit new
Members to pick and choose the amendments which they will accept. |
GATT Library | zt597ym2319 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Combined re-draft of Articles 35 (2) and 86 suggested by the United Kingdom Delegation. New Article 86. Nullification, impairment and disputes | United Nations Economic and Social Council, June 5, 1947 | United Nations. Economic and Social Council | 05/06/1947 | official documents | E/PC/T/W/161 and E/PC/T/W/151-176 | https://exhibits.stanford.edu/gatt/catalog/zt597ym2319 | zt597ym2319_90050298.xml | GATT_152 | 507 | 3,260 | UNITED NATIONS NATIONS UNIES RESTRICTED
E/PC/T/W/161
ECONOMIC CONSEIL 5 June 1947
ORIGINAL: ENGLISH
AND ECONOMIQUE
SOCIAL COUNCIL ET SOCIAL
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT.
COMBINED RE-DRAFT OF ARTICLES 35 (2) and 86
SUGGESTED BY THE UNITED KINGDOM DELEGATION.
NEW ARTICLE 86
NULLIFICATION, IMPAIRMENT AND DISPUTES
1. Nothing in this Article shall be construed to limit or exclude
other procedures established in this Charter for consultation over
and settlement of complaints or difficulties arising out of its
operation.
2. If any Member considers that another Member has adopted any
measure, whether or not it constitutes a breach of an obligation
under this Charter, or that any situation has arisen, which has the
effect of nullifying or impairing any object of this Charter, it
may invite the Members concerned to consult thereon and they shall
endeavour to reach a satisfactory settlement.
3. If no such settlement can be reached, the matter may be
referred by an interested Member to the Executive Board, which shall
give a ruling thereon.
4. 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 of the majority confirm
or amend or reverse the ruling, provided that
(i) it may, as appropriate,consult with the Economic and
Social Council of the United Nations and with any other
interested inter-governmental organisations; and
(ii) if the matter involves a dispute as to the interpretation
of the Charter, it shall at the instance of not less than
one-third of the Members request from the International Court
of Justice an advisory opinion thereon and any proceedings for
the review by the Conference of such a ruling of the Board
shall thereupon be stayed until the opinion of the Court is
delivered, and the Conference, when it finally reviews such
ruling shall adopt and be bound by the advisory opinion
delivered by the Court. The Conference after reviewing the
ruling may make such further recommendations to the Members
concerned as it thinks fit.
5. If it considers, in any case brought before it in pursuance of
this Article, that a breach of obligations under this Charter or
that nullification or impairment of any object of this Charter has
taken place of a character serious enough to justify such action,
the Conference may authorise any Member or Members to suspend the
application to any other Member or Members of such obligations or
concessions under the Charter as it may specify. If such obligations
or concessions are, in fact, suspended, any affected Member shall
then be free to give notice of vithdrawal from the Organisation.
P.T.O. E/PC/T/W/161
page 2
Such notice must be given to the Organisation in writing and
within 60 days after such action is taken, and the Member's
withdrawal shah become effective 60 days after the receipt
by the Organisation if the said notice.
6. The Executive Board and the Conference shah respectively
make rules of procedure for giving effect to this Article. |
GATT Library | ht479rk2808 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Comments by the Legal Officer upon the Amendment of the Australian Delegation to Paragraph 1 of Article 14 | United Nations Economic and Social Council, June 4, 1947 | United Nations. Economic and Social Council | 04/06/1947 | official documents | E/PC/T/W/164 and E/PC/T/W/151-176 | https://exhibits.stanford.edu/gatt/catalog/ht479rk2808 | ht479rk2808_90050301.xml | GATT_152 | 365 | 2,314 | UNITED NATIONS NATIONS UNIES RESTRICTED
E/PC/T/W/164
ECONOMIC CONSEIL 4 June 1947
AND ECONOMIQUE ORIGINAL: ENGLISH
SOCIAL COUNCIL ET SOCIAL
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
Comments by the Legal Officer
upon the Amendment of the Australian Delegation
to Paragraph 1 of Article 14
1. It is a rule of legal interpretation that when a general
principle is later followed by exceptions to that principle, the
general principle is modified to the extent of the exceptions.
Whether or not the exceptions are tied to the general principle
by some such words in the latter as "subject to the exceptions
set out hereinafter" is not a matter which has any legal sig-
nificance or upon which any unIform practice has been established.
2. It would seem, therefore, that the Australian Delegation's
amendment to paragraph 1 of Article 14 is not essential for, even
without the addition of the words suggested, the general rule
stated in Article 14 would be interpreted in the light of any
exceptions to it appearing in later articles of the Charter.
3. However, should the Preparatory Committee consider it desir-
able to add the words suggested by the Australian Delegation to
paragraph 1 of Article 14, it would be necessary to scrutinize
carefully otherparts of the Charter to see whether, in the
interests of unifornity and to avoid confusion, similar words
should be added elsewhere. Perhaps the best course to adopt
would be for the Preparatory Committee to place on record the
fact that the Draft Charter has been preprared bearing in mind the
rule of legal interpretation referred te in paragraph 1. If this
course were adopted, It should not be necessary to insert the words
suggested by the Australian Delegation.
4. Regarding the reference of the delegate of the United Kingdom
to the legal effect of the headings of articles, it is pointed out
for the information of delegations that whilst it is true that
a priori headings have no legal significance in that they do not
form part of- the text, should the meaning of the text not be clear
the heading may be referred to as an aid in interpretation. |
GATT Library | gz354qn6456 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Comments of the Netherlands delegation on the draft- schedules to be attached to the General Agreement on Tariffs and Trade (document E/PC/T/153) | United Nations Economic and Social Council, August 15, 1947 | United Nations. Economic and Social Council | 15/08/1947 | official documents | E/PC/T/W/296 and E/PC/T/W/261-306 | https://exhibits.stanford.edu/gatt/catalog/gz354qn6456 | gz354qn6456_90050447.xml | GATT_152 | 288 | 1,913 | UNITED NATIONS NATIONS UNIES
RESTRICTED
ECONOMIC CONSEIL E/PC/T/W/296
AND ECONOMIQUE 15 August 1947
SOCIAL COUNCIL ET SOCIAL ORIGINAL: ENGLISH
SECOND SESSION OF THE PREPARATORY COMMITTEE OF
THE UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
Comments of the Netherlands delegation on the draft-
schedules to be attached to the General Agreement
on Tariffs and Trade (document E/PC/T/153)
1. A comparison between the draft-general agreement
(document E/PC/T/135) and the drafted schedules shows
the following inconsistencies:
a. Art. I, par. 3 of the draft agreement does not
provide for the scheduling of the preferential
margin only, the M.F.N. rate and the preferential
rate remaining unscheduled. The draft-schedules
do provide so.
b. Art. I, par. 3 of the draft agreement does not
provide for the scheduling of the preferential
rate. The draft schedules do provide so.
It thus seems advisable to amend the wording of
Art. I, par. 3 so that these possibilities will be
mentioned.
2. Attention is drawn to the fact that since the date
of distribution of document E/PC/T/153, art. 15 of the
Charter has been redrafted in subcommittee. This redraft
would necessitate an essential change in the wording of
the note on internal taxes mentioned under tariff item
nr. 331 on page 6 of the English text of document
E/PC/T/153 (page 7 of the French text).
Furthermore the present wording of the note does
not make it clear whether it intends to refer only to
rates of internal taxes which are preferential for the
products from one or a few countries as opposed to those
from all other countries, or whether - as seems logical -
it also refers to discrimination in the rates for domestic
products on one hand and all imported products on the
other hand. |
GATT Library | qn469kp7225 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Comments of the Netherlands delegation on the draft- schedules to be attached to the General Agreement on Tariffs and Trade (document E/PC/T/153) | United Nations Economic and Social Council, August 15, 1947 | United Nations. Economic and Social Council | 15/08/1947 | official documents | E/PC/T/W/296 and E/PC/T/W/261-306 | https://exhibits.stanford.edu/gatt/catalog/qn469kp7225 | qn469kp7225_90050447.xml | GATT_152 | 0 | 0 | |
GATT Library | zg392bd9748 | Second Session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Commission A (1). Summary Record of the 40th Meeting held on Friday, 15 August, 1947 at 10.30 a.m. at the Palais des Nations, Geneva | United Nations Economic and Social Council, August 15, 1947 | United Nations. Economic and Social Council | 15/08/1947 | official documents | E/PC/T/A/SR/40(1) and E/PC/T/A/SR/21/CORR.1-40(1)/CORR.1 | https://exhibits.stanford.edu/gatt/catalog/zg392bd9748 | zg392bd9748_90250058.xml | GATT_152 | 1,890 | 12,275 | UNITED NATIONS NATIONS UNIES
RESTRICTED
ECONOMIC CONSEIL E/PC/T/A/SR/40 (1)
AND ECONOMIQUE 15 August, 1947
SOCIAL COUNCIL ET SOCIAL ORIGINAL: ENGLISH
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
COMMISSION A (1)
Summary Record
of the 40th Meeting held on Friday, 15 August, 1947
at 10.30 a.m. at the Palais des Nations, Geneva.
CHAIRMAN: Mr. M. SUETENS (Belgium)
The CHAIRMAN indicated that the meeting would consider
Articles 25 and 27, and, subsequently, articles 26, 28 and 29.
He suggested that the discussion of Articles 25 and 27 should
proceed on the basis of the report of the Sub-Committee (E/PC/T/141)
and the report of the Legal Drafting Committee ( /PC/T/164), and
that members should base their remarks concerning amendments to the
text on the version proposed by the Legal Drafting Committee. Mr
MELANDER (Norway) introduced the report of the Sub-Committee.
Article 2-. paragraph 1.
The Commission agreed to add the words "or export" between
the words "import" and "licenses" in paragraph 1.
Paragraph 2(a).
Mr. E. McCARTHY (Australia) directed attention to the
suggestion put forward by his Delegation that the word "critical"
should be deleted for the reasons indicated in Document E/PC/T/W.263.
M. de S-EDT (Belgium) felt that the institution of export
prohibitions on marino sheep in the circumstances described in
E/PC/T/W.263 would be permissible ever with the retention of the
word " critical ". He pointed out that, if the imposition of export E/PC/T/A/SR/40 (1)
Page 2
restrictions were to be questioned under the present language
of this paragraph, the case could be covered by the provision
elsewhere in the Charter permitting the use of restrictions to
safeguard exhaustible natural resources. He felt that the
deletion of the word "critical" would weaken the present paragraph
unneccessarily. The CHAIRMAN sug ested that "critique", the
French equivalent of "critical", already covered the sort of
situation described by the Australian representative. Mr. KOJEVE
(France) agreed with the CHAIRMAN' s interpretation of the French
equivalent but remarked that the present to-t which refers to
the prevention of a critical situation involves some difficulty
inasmuch as it presumes that on, can determine in advance whether
or not a situation in the future is going to be "critical". Mr.
R.J. SHACKLE (United Kingdom) expressed the view that the word
"critical", as well as "critique", covered the sort of situation
mentioned by Mr. McCARTHY. He also thought that the deletion of
the word would have the unfortunate result of making it possible
to bring within the scope of this paragraph any essential product
which might be scarce in any degree. Mr. J.J. DEUTSCH (Canada)
agreed that the existing words - especially if account is taken
of the fact that the text refers to the prevention of a critical
situation - covers the case. Mr. L.C. WEBB (New Zealand) suggested
that the word "serious" might be substituted for the word "critical".
Mr. H. HAWKINS (United States) felt that the situation mentioned
by Mr. Mc CARTHY was covered by the existing text, since that text
refers to "prevention".
The CHAIRMAN suggested that there was no need to discuss the
substitution of "serious" for "critical" in view of the statements
that had been made. In the light of the discussion also the E/PC/T/A/SR/40 (1)
Page 3.
CHAIRMAN stated, on behalf of the Commission, that the deletion of
the word would give rise to difficulties in other directions.
Mr. McCARTHY indicated that he would report the views expressed in
Commission to his Government and in the meantime would not press
his amendment.
Paragraph 2 (b)
The Commission agreed with the suggestion of M. KOJEVE that
the word "otalonnnge" in the French text should be replaced by the
words "controle de qualite".
The Commission agreed with the suggestion of Mr. SHACKLE that
the words "under paragraph 6, Article 22" should be retained.
Paragraph 2(c)
At the suggestion of Mr. SHACKLE the Commission agreed to retain
note number 7 from the Sub-Committee's report setting forth the
agreed understanding concerning the words "in any form". Mr.
A. FAIVOVICH (Chile) reserved the position of his Delegation in
view of the fact that the paragraph did not include "industrial
products" as well as agricultural and fisheries products. He
suggested also that some attempt should be made to define "like
products". He added that fisheries should not be interpreted as
including whale hunting. After some discussion, in the course of
which Mr. E. RODRIGUES (Brazil) pointed out that many countries
have special agencies for dealing with the definition of "like
products", the Commission agreed that the definition of this term
might be left to the International Trade Organization in the light
of the practices of individual countries. Concerning the last
point, after Mr. SHACKLE remarked that whale products were included
in the fisheries category in the official statistics of the United
Kingdom, it was agreed that the definition of the term "fisheries
products" should also be left to the Organization. E/PC/T/A/SR/40 (1)
Page 4
Mr. N.J. WU (China) referred to three reservations previously
made by the Chinese Delegation:
(1) concerning the interpretation of the term "special
factors", on which the Chinese Delegation was now prepared to
withdraw its reservation;
(2) concerning the amendment put forward in E/PC/T/W.75, which
the Chinese Delegation would now replace by the amendment
presented in E/PC/T/W.260; and
(3) concerning the amendment proposed by the Chinese Delegation
in E/PC/T/W.260 whereby an additional sub-paragraph (d) would
be added to paragraph 2 providing for the protection of
particular industries or agricultural products deemed to be
of vital importance to a Member.
With reference to this last reservation, Mr. WU maintained
that the procedure envisaged was not covered by Articles 13, 13 (A)
or 13 (B) in that in the present proposal prior consultation with
the Organization would be unnecessary although a Member would be
required to notify the Organization immediately. After some
discussion, during the course of which the amendment was rejected
by the Commission, the Chinese representative indicated that his
Delegation would have to maintain its reservation in respect of
this proposal.
In connection with the remarks of the Delegate of China
concerning the term "special factors" the Commission, at the
suggestion of Mr. SHACKLE, agreed that note number 2 in the Sub-
commmittee' s report defining this term should be retained.
Dr. G. GUTIERREZ (Cuba) presented a proposed amendment relating
to the preamble of paragraph 2 (c) and the sub-paragraphs which
follow (see Document E/PC/T/W. 208). He suggested that the E/PC/T/A/SR/40 (1)
Page 5
position of the Cuban Delegation would be met if, after sub-paragraph
(c), the following sub-paragraph were to be inserted:
"Any import restriction for promoting the establishment,
maintenance, development or reconstruction of an industry,
or an agricultural or fishery production, provided that
the quantitative restriction applied to imports does not
exceed fifty per cent of the consumption of a given product
in the domestic -market."
The Cuban amendment was not accepted by the Commission.
Dr. GUTIERREZ indicated that his Delegation would have to maintain
its reservation in respect of the subject of this amendment. Mr.
FAIVOVICH indicated that the Chilean Delegation would eventually
enter a similar reservation.
Paragraph 3
Mr. SHACKLE suggested that the concluding part of this para-
graph should be clarified by changing it to read ". . . include
restrictions by state-trading enterprises applied in a manner other
than, or to en extent greater than, would be permissible under
Section E of Chaptcr V". Mr. Z. AUGENTHALER (Czechoslovakia)
expressed the view that this suggestion represented a formal amend-
ment and that he would accordingly like to have the written text
before discussing it. M. LUGUERN (France) agreed with Mr. AUGEN-
THALER. The CHAIRMAN indicated that discussion of this point would
be resumed as soon as the text could be circulated by the Secretariat.
Article 27. paragraph 1
The Commission accepted the text proposed by the Legal Drafting
Committee.
Paragraph 2. Proamble and sub-paragraph (a)
M. LUGUERN drew attention to a reservation which the French
Delegation had previously made in respect of the omission of the
words "as a result of international competition", or, alternatively, E/PC/T/ A./ SR/40 (1)
Page 6
"as a result of international trde based on commercial considera-
tions". Mr. G.D.L. WHITE (New Zealand) felt that the point was
already covered, so far as it could be, by note number 4 relating
to Article 27 in the report of the Sub-committee. Mr. WHITE asked
that this note be retained. Mr. MELANDER, as Chairman of the Sub-
committee, expressed the view that the deletion of the words
desired by the French Delegation did not really have a substantial
effect. Mr. SHACKLE and Mr. HAWKINS agreed with the suggestion of
the New Zealand representative. The CHAIRMAN then asked whether
the represent tive of France would be ready to abandon his sug-
gestion and to be satisfied with the retention of the note.
M. LUGUERN, in order to avoid complicating the discussion, withdrew
his suggestion. The Commnission agreed to retain note number 4.
Sub-paragraphs 2 (b) , 2 (c) and 2 (d)
Mr. AUGENTHALER drew attention to the reservation previously
entered by the Czechoslovak Delegation in respect of import
licenses under sub-paragraph (c). He withdrew this reservation
provisionally subject to the subsequent acceptance by the Com-
mission of paragraph 8 (ii) of Article 29.
Sub-paragraphs 3 (a),3 (b) and 3 (c)
M. LUGUERN proposed that in the French text the words at the
bottom of page 10 should read: "si le 'produit en question est en
cours de route . . .l ' entrée n'en sera pas refusée"; and that in
the 20th line, page 11, the word "entrepôt" should be in the
singular.
Mr. AUGENTHALER drew attention to the reservation of his
Delegation concerning "public notice in 3 (b) and (c). He
indicated that his Delegation would maintain this reservation, at
least until the World Conference. E/PC/T/A/SR/40 (1) Page 7
Paragraph 4
Dr. GUITTEREZ explained the amendment proposed by his
Delegation in Document E/PC/T/W .259. Mr. HARKINS doubted that
this provision would fit appropriately into the present context
of this paragraph but indicted that the substance of the
amendment was not unacceptable to him. Dr. GUITTEREZ felt
that if the text of the present sub-paragraph wore read in
conjunction with the two sub-paragraphs to which it refers
the amendment would seem to be -arranted and appropriate, at
least until some decision is taken on the question of confining
all consultation provisions to an article in the Charter.
M. LUGERN felt that the amendment proposed by Dr. GUITTEREZ
would introduce serious complications for exporters. Dr.
GUITTEREZ was of the opinion that the procedure suggested in
his amendment followed naturally from other provisions in
the Charter and did not introduce any new complications.
Mr. MELANDER indicated that he had no objection to the
proposed amendment. The Commission accepted the Cuban
amendment whereby the following words would be added at the
end of sub-paragraph 4:
".. or for the elimination of conditions, formalities or
any other provisions established unilaterally upon the
allocation of an adequate quotas or its unrestricted
utilization."
The CHAIRMAN ndi red this,a tt; t ei.exhep-ho,:co'ti Oln of the
edpoinNMt raHAiKLEs b r . SC conecerning th last sentence of
,Arvele mmissi2n-1h2 Curk d noew aprovcd text and
naingccompay nroAtes feo rticlds 2.5 an 27 The amendment
ientoduci. bHACKLEy Mll,SIwoun be didscussecat the afternoon
eeting .
eeThe cing ;os 1 a0~ :.um.*p .n |
GATT Library | ds075jd8621 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Commission A. Corrigendum to Document E/PC/T/W/183 | United Nations Economic and Social Council, June 12, 1947 | United Nations. Economic and Social Council | 12/06/1947 | official documents | E/PC/T/W/183 Corr. 1 and E/PC/T/W/177-207 | https://exhibits.stanford.edu/gatt/catalog/ds075jd8621 | ds075jd8621_90050325.xml | GATT_152 | 58 | 419 | UNITED NATIONS
ECONOMIC
AND
SOCIAL COUNCIL
SECOND SESSION
UNITED NATIONS
NATIONS UNIES
CONSEIL
ECONOMIQUE
ET SOCIAL
RESTRICTED
E/PC/T/W/183 Corr. 1.
12 June 1947.
ENGLISH ONLY.
OF THE PREPARATORY COMMITTEE OF THE
CONFERENCE ON TRADE AND EMPLOYMENT.
COMMISSION A
CORRIGENDUM TO DOCUMENT E/PC/T/W/183
Page 2, list of countries, ..... "Commonwealth of New Zealand"
should read "Dominion of New Zealand." |
GATT Library | pq579wx0468 | Second Session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Commission A Fourth Meeting held on Wednesday, 28 May 1947 at 3 p.m. in the Palais des Nations, Geneva | United Nations Economic and Social Council, May 28, 1947 | United Nations. Economic and Social Council | 28/05/1947 | official documents | E/PC/T/A/SR/4 and E/PC/T/A/SR/1-10/CORR.1 | https://exhibits.stanford.edu/gatt/catalog/pq579wx0468 | pq579wx0468_90250006.xml | GATT_152 | 1,625 | 10,436 | RESTRICTED
ECONOMIC CONSEIL E/PC/T/A/SR/4
AND ECONOMIQUE 28 May 1947
SOCIAL COUNCIL ET SOCIAL ORIGINAL: ENGLISH
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
COMMISSION A
Fourth Meeting held on Wednesday, 28 May 1947 at
3 p.m. in the Palais des Nations, Geneva
Chairman: M. Max Suetens (Belgium)
The CHAIRMAN called the meeting to order and asked delegates
if they wanted to express their preference in regard to the
principle contained in the Chilean Delegation's amendment or
that expounded by the Delegations of Australia and the
United Kingdom.
Article 13 - Amendments proposed by the Delegations of Chile,
Australia and the United States
Mr. JUSSIANT (Belgium), Mr. DEUTSCH (Canada) and
Mr. HAWKINS (United States) supported in general the principle
contained in the Australian and United Kingdom amendments.
Dr. HOLLOWAY (South Africa), referring to the following
words "would conflict with any other provision of this Charter"
in paragraph 2(a), asked if there were any circumstances in
which a Member is bound to inform the Organization every time
it imposes or increases an unbound protective duty to which
the CHAIRMAN replied that he believed that the time had not
come to raise such a question, but in his view there was no such
Obligation.
Dr. COOMBS (Australia), referring to the history of Article
13 in London, explained that it represented a series of compromises
to which delegates agreed because they recognized the advantages
UNITED NATIONS
NATIONS VNIES E/PC/T/A/SR/4
page 2.
Of having a Charter for international trade. It was in the same
spirit that the Australian Delegation had submitted its
amendments to Article 13 which reduces the possibilities of delay
in maintaining the principle of prior consultation.
Dr. LOKANATHAN (India) expressed the opinion that a
difference existed in the Charter between the procedure for the
application of quantitative restrictions for protective purposes
and other restrictions, adding that it was not acceptable that a
country feeling the need for quantitative restrictions for protective
purposes should be treated differently from a country wishing
to apply the same quantitative restrictions for some other
purposes such as the safeguarding of balance of payments.
Mr. BARADUC (France) stated that he could not agree with
a simple declaration of principle as set forth in the proposal
of the Chilean Delegation as it would result in a lack of
balance between various Chapters of the Charter.
Mr. GARCIA OLDINI (Chile) stated that the proposal of his
Delegation did not constitute merely a declaration of principle
and furthermore he was ready to accept any rules, provided the
main objective of his amendment was obtained.
Mr. TORRES (Brazil) suggested that the amendment proposed
by Australia and the United Kingdom be referred to the Sub-
Committee as a basis of discussion.
Thereupon the CHAIRMAN declared the discussion closed and
referred the matter to the Sub-Committee.
Preferential Arrangements - Additional Text proposed by the
Delegations of Chile and Lebanon
Mr. HEL.MORE (United Kingdom) doubted whether this amendment
would d be useful in the case of two countries not in the same
stage of economic development. E/PC/T/A/SR/4
page 3
Mr. GARCIA OLDINI (Chile) explained that his amendment
was based on the necessity of providing a large market, at
least for the beginning of new industries, in those
countries which are not sufficiently developed.
Mr. JUSSIANT (Belgium) could not agree with the proposed
amendment as it seemed to him to result in a limitation of
the market to the products of the respective countries.
Mr. MIKAOUI (Lebanon) reminded the Committee that the
amendment did not ask for the automatic establishment of a
preferential system but was intended only to obtain from the
Organization favourable consideration of the proposals for
specified preferential arrangements.
Mr. Fresquet (Cuba) could nct agree with the Lebanese
proposal as he felt that it might result in the establishment
of regional economic groups, which is one of the main
obstacles in the way of freeing world trade.
Mr. WILCOX (United-States) asked for an explanation
concerning the relation between the new paragraph and para-
graph 3 of Article 66.
Mr. MIKAOUI (Lebanon) explained that his Delegation had
made that reservation in regard to Article 38, and Mr.
GARCIA OLDINI (Chile) enquired whether it would not be possible
to consider articles 13 and 38 together to decide once and
for all about the proposed. amendment, and added that he saw
no disadvantage in keeping the text of Article 38 even if
his additional text to Article 13 were accepted.
The CHAIRMAN referred the matter to the Sub-Committee
in asking it to consider any possible consequential redrafting
of Article 38. E/PC/T/A/SR/4
page 4
New Article 13(a)
Mr. COOMBS (Australia) explained that his amendment was
intended to apply to all Members, original as well as new.
Mr. HELMORE (United Kingdom) stated that his Delegation
was considering the same point as that contained in the
Australian proposal and that the United Kingdom version
referring to the date of entry into force of the Charter was
applicable to original Members. He furthermore wished that the
Sub-Committee consider drafting a formula to obviate the
possible abuse of a provision of the sort included in the
amendments.
Mr. WILCOX (United States) expressed the view that perhaps
28 May 1947 would be more appropriate for the timing of the
new Article.
Mr. MINOVSKY (Czechoslovakia) proposed the addition of the
following words after the words "Member or Members" in the
proposed new text:- "and which is not covered or allowed by
some other provisions of the Charter".
The CHAIRMAN stated that this suggestion could be left for
consideration by the Sub-Committee.
To the question of Mr. DEUTSCH (Canada) enquiring whether
a Member may continue to use protective measures contrary to the
provisions of the Charter for the items bound in tariff agree-
ments as well as for those which are not bound, Mr. COOMBS
(Australia) replied that he believed it would depend upon the
nature of the tariff agreements and Mr. WILCOX (United States)
explained that what was intended was measures conflicting with
the provisions of the Charter and not conflicting with any obliga-
tion which the Member may assume through other negotiations.
Mr. BARADUC (France) stated that the Australian amendment
raised a point of principle which was not limited to this E/PC/T/A/SR/4
Page 5
Chapter alone, as he belived that nowhere in the Charter had its
application to new Members who were not signatories to the Charter
been envisaged.
Mr. HELMORE (United Kingdom) pointed out that there appeared
to be two entirely different cases - if a thing is forbidden the
country desiring to join the ITO must give it up before joining,
but if the thing is permissible after consideration by the Organiza-
tion then, in principle at any rate, there is a case for allowing
it while the Organization considered it.
Mr. DEUTSCH (Canada) stated that if the amendment is adopted
it might no longer be assumed that quantitative restrictions were
excluded, and he hoped that the Committee would consider the
rather large issues arising from this situation.
The CHAIRMAN referred the Australian proposal to the
Sub-Committee which will consider it together with the observa-
tions made in the meeting.
Capital Investments
The CHAIRMAN reminded the meeting that the discussion of the
United States amendments concerning capital investments was post-
poned according to the wish expressed by the Delegations for Cuba
and India and asked those Delegations to express their views.
Mr. GUTIERREZ (Cuba) was sympathetic with the United States
proposal but did not agree with a change in the title of the
Chapter and wished that the amendment might be re-drafted so
as not to give foreign capital a better position than national
capital and so as to prevent the use of foreign investment for
political purposes.
Mr. GANGULI (India) was not inclined to favour any
detailed procedure in respect of capital investments which
he considered to be the business of the specialized agencies
such as the International Bank. He agreed, however, to a
general expression of principle safeguarding the creditor E/PC/T/A/SR/4
page 6
countries as included in the Indian amendment.
Mr. WEBB (New Zealand) shared the opinion of the Indian
Delegate in considering it inappropriate at this stage to enter
into precise details, especially as the whole subject was about
to be considered by the Economic and Employment Commission.
Mr. WILCOX (United States) agreed with the Indian amendment
and suggested that the representative of the International Bank be
asked to express his views to the Sub-Committee.
Mr. GOTZEN (Netherlands) did not share the view of the New
Zealand Delegate and Mr. COOMBS (Australia) suggested that the Sub-
Committee consider the intentions lying behind the articles of agree-
ment of the Monetary Fund in respect of the movement of capital.
Mr. LUXFORD (Representative of the International Bank) in-
formed the meeting that the International Bank was entirely in
sympathy with the general purposes of the United States proposal
and wished to encourage the use of private capital in international
investment. He added that the term "international investment"
seemed extremely broad and that the provisions contemplated here
were assumed not to duplicate or affect the functions of the Inter-
national Bank.
Mr. CHEN (China), with the exception of a few amendments,
expressed himself to be in agreement with the United States proposal.
The CHAIRMAN, finding that a strong majority of Members
supported the United States amendments, proposed to refer them to
the Sub-Committee for the preparation of a final text which should
take into account the various opinions expressed in the Committee.
The South African amendment to Paragraph 3, Article 13
In view of the lateness of the hour it was decided that
another meeting of Commission A should take place at 10.30 a.m.
on Friday, 30 May to discuss this amendment.
The meeting rose at 6.45 p.m. |
GATT Library | rr361gr9165 | Second Session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Commission A. Report of Sub-Committee on Articles 25 and 27 | United Nations Economic and Social Council, August 1, 1947 | United Nations. Economic and Social Council | 01/08/1947 | official documents | E/PC/T/114 and E/PC/T/135-142 | https://exhibits.stanford.edu/gatt/catalog/rr361gr9165 | rr361gr9165_92290170.xml | GATT_152 | 3,206 | 20,657 | UNITED NATIONS RESTRICTED
E/PC/T/1l4
ECONOMIC CONSEIL 1 August 1947
ORIGINAL: ENGLISH
AND ECONOMIQUE
SOCIAL COUNCIL ET SOCIAL
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT.
COMMISSION A
REPORT OF SUB-COMMITTEE ON ARTICLES 25 AND 27
INTRODUCTION
1. The Sub-Committee was appointed by Commission A and con-
sisted of representatives of Brazil, China, Czechoslovakia,
Netherlands, Norway, the United Kingdom and the United States.
2. Mr. Johan Melander (Norway) was elected Chairman of the
Sub-Committee.
3. The Sub-Committee held 5 sessions. By invitation of the
Sub-Committee, and in accordance with the decision of Commission A,
representatives of several countries not Members of the Sub-
Committee attended its meetings and took part in the discussions
of points of special interest to them.
4. The Sub-Committee has been able to present a single text.
The large measure of agreement reached has been due to the spirit
of conciliation in which the discussions were conducted by all
Members. Reservations on those points on which it has been
impossible to reach unanimity, are set out in the Report.
5. The text of Articles 25 and 27 as agreed by the Sub-Committee
is attached as an Annex to this Report; all notes refer to the
new text. The footnotes contained in the New York Report have
been taken into consideration: it has not been considered
necessary to retain them.
GENERAL NOTES
1. Following the ruling of Commission A that problems relatihg
to economic development should in the first instance be concentrated
in the Sub-Committee dealing with Chapter IV, the Sub-Committee
examined the text without entering into these problems.
Accordingly, proposals specifically dealing with these problems
were not discussed by the Sub-Committee, but brought to the
attention of the Sub-Committee dealing with Chapter IV. These
were the Chinese amendment (E/PC/T/W.75), Chilean reservation
(D.C. Report, page 10, note (c)) and Indian reservation (D.C.
Report, page 10, note (e)) relating to sub-paragraph 2(e) of
Article 25; and Cuban proposal (E/PC/T/W.194) and Syro-Lebanese
proposal (E/PC/T/W.223, page 10, note 15) for additional
provisions in sub-paragraph 2 of Article 25.
2. The majority of the Sub-Committee considered the term
"special factors", used in sub-paragraph 2(c) of Article 25 and
sub-paragraphs 2(d) and 4 of Article 27 to include changes in
relative productive efficiency as between domestic and foreign E/PC/T/l41
page 2.
producers, or as between different foreign producers, but not
changes artificially brought about by means not permitted under
the Charter. The delegate of China reserved his-position on
this interpretation.
ARTICLE 25
The Sub-Committee considers that the note in the London
Report (Chapter III, Section C, Paragraph 1, sub-paragraph (n)
and (o)) dealing with existing preferential arrangements not
effected by differential rates of duty, should be maintained in
the Report of the Second Session. The Sub-Committee has drawn
the attention of the Tariff Negotiations Working Party to this
note with a view to including an appropriate provision in a
protocol to the General Agreement on tariffs and Trade.
Paragraph 1
The Sub-Committee took no precision on a proposal to delete
the words "Except as otherwise provided in the Charter", but
referred it to the Legal Drafting Committee to be dealt with in
conformity with any general decision in respect of similar clauses
elsewhere in the Charter.
1. The Sub-Committee agreed with the suggestion made by the
Sub-Committee dealing with Articles 14, 15 and 24 that the sub-
stance of the old sub-paragraph (a) should be applicable to all
provisions of Chapter V. The Sub-Committee considered that the
same should apply in respect of the old sub-paragraphs (d) and (f)
and accordingly decided to recommend the transfer of these three
provisions to Article 37 - General Exceptions, having Commission
A to make any change in the text, which might be necessary as a
result of the transfer. The remaining sub-paragraphs have been
renumbered accordingly.
2. ln sub-paragraph (a) the words "prevent or" have been
inserted to enable a Member to take remedial action before a
critical shortage has actually arisen. A further sliht change
in the working was made to indicate the view of the Sub-Committee
that for the purposes of this provision the importance of any
product should be judged in action to the particular country
concerned.
3. Sub-paragraph (b) has been widened so as to include
marketing regulations.
In the text of sub-paragraph 2(c) two changes of substance
have been made:
4. The Sub-Committee considered that domestic measures envisaged
under (i) and (ii) were liable to be ineffective, if the right to
apply import restrictions were strictly limited to the "like"
product. The provision was therefore widened to cover import re-
strictions on products which are directly substitutable for the
domestic product and of which there is no substantial domestic
production. The word "directly" was inserted to assist in
the interpretation of this provision. E/PC/T/141
page 3.
The Sub-Committee, having given careful consideration to
this working, has brought it to the attention of the Sub-Committee
dealing with articles 14, 15 and 24 with a view to considering
as to whether conformity should be established between this
Article 2nd a similar provision in Article 15.
5. Under (iii) a new provision has been inserted. Its purpose
is to enable a country to restrict the domestic production of
animal products which is wholly or mainly dependent on an imported
commodity of which the domestic production is negligible.
6. The Sub-Committee, by majority decision, declared itself
unable to accept a proposal that governmental measures operating
to regulate prices should be included under sub-paragraph (c) (i).
The delicate of China entered a reservation on this matter.
7. It is the understanding of the Sub-Committee that the term
"in any form" 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.
8. The deletion, at the end of this sub-paragraph, of the
provision for consultation was made to avoid duplication of the
similar provision contained in paragraph 4 of Article 27.
9. The delegate of China reserved his position in respect of
the whole of sub-paragraph 2(c), ponding the conclusions arrived
at by the Sub-Committee dealing with Chapter IV.
Paragraph 3
This provision corresponds to paragraph 7 of Article 26 of
the New York text. The Sub-Committee agreed with a suggestion
made by the Sub-Committee on Articles 26, 28 and 29 to the effect
that this revision, being applicable to the entire Section C of
Chapter V, would have its right place in Article 25. Since
Section C and Article 32 deal with export as well as import
restrictions, the wording has been changed so as to include both
types of restrictions.
ARTICLE 27
Paragraph 1
No change has been made in the text of the New York Draft.
Paragraph 2
1. The Sub-Committee, whilst agreeing with the principle
expressed in the old sub-paragraph (a), considered it to be a
rule too general to warrant its inclusion on the same level as
the subsequent concrete provisions of this paragraph. In view of
the difficulty of the practical application of this provision the
Sub-Committee considered that its sense should serve as a guiding
principle rather than administrative rule and for this reason be
incorporated in the introductory sentence of this paragraph.
The following sub-paragraphs have been re-numbered accordingly. E/PC/T/141
The French delegate reserved his position in respect of the
omission from this provision of the words "as a result of inter-
national competition" or, alternatively, "as a result of inter-
national trade based on commercial considerations".
2. The wording, in the New York draft, of sub-paragraphs (a)
and (b) has remained unchanged.
3. In sub-Paragraph (c) a drafting change has been made.
The Sub-Committee could not accept a suggestion for this
provision to be amended so as to allow a Member to issue licenses
or permits for imports from a particular country, if this was
necessary for balance-of-payments reasons. It was felt that such
an exception would have its right place in the context of Articles
26 or 28 and, accordingly, the attention of the Sub-Committee on
Articles 26, 28 and 29 was drawn to this sub-paragraph with a view,
if it thought fit, to adding a provision to Articles 26 or 28
covering the case in question.
The Czechoslovak Delegate reserved his position on this sub-
paragraph pending the decision regarding the insertion of an
appropriate provision in Articles 26 or 28, and also for the
reasons stated in the Note to paragraph 3, and wished to have the
view of the Czechoslovak Delegation recorded as follows:
The principle of granting import licenses only "in blank"
(without mentioning the exporting country - even in cases in which
the exporting country has been determined in the application by
the importer himself) is not applicable in practice, except in time
of an entirely from and unhampered convertibility of world
currencies. Such a situation, of course, does not exist at present,
and is hardly to be expected to develop in the near future.
4. In sub-paragraph (d) the Sub-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.
Paragraph 3
No change of substance has been made in thr wording of the
New York draft.
The Czechoslovak Delegate reserved his position on the
requirement of public notice in sub-paragraphs (b) and (c) and
wished to have it recorded in the following terms:
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 her foreign trade, are not
following a similar procedure. The obligation of giving public E/PC/T/141
page 5.
notice of global quotas and of the allocation of shares is, in
the particular situation of Czechoslovakia, too rigid a rule and,
unless practised genrally, 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
Czechoslovak Delegation it should be sufficient to supply full
information to Members substantially interested in the exportation
of the respective commodity.
Paragraph 4
In the consultation clause at tho end of this paragraph the
words "of the proportion determined or" have been inserted, so
as to give it the same application as the similar clause in
Article 25(c) which was deleted to avoid duplication.
Paragraph 5
No change has been made in the wording of this provision.
It may require to be amended in the light of any changes that may
be agreed on in the text of Article 15. E/PC/T/141
page 6.
ANNIEX
ARTICLE 21
General Elimination of Quantitative Restrictions
1. [ Except as otherwise provided in this Charter,] no
prohibitions or restrictions other than duties, taxes or
other charges, whether made effective through quotas, import
licenses or other measures, shall bc instituted or maintained
by any Member on the importation of any product of any other
Member country or on the exportation or sale for export of
any product destined for any other Member country.
2. The provisions of paragraph 1 of this Article
shall not extend to the following :
(a) Export prohibitions or restrictions temporarily
applied to prevent or relieve critical shortages of foodstuffs
or other products essential to the exporting Member country.
(b) Import and export prohibitions or restrictions
necessary to the application of standards or regulations for
the classification, grading or marketing of commodities in
international trade. If, in the opinion of the Organiza-
tion, the standards or regulations adopted by a Member under
this sub-paragraph have an unduly restrictive affect 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 6 of Article 22.
(c) Import restrictions on any agricultural or fisheries
product, imported in any form, necessary to the enforcement of
governmental measures which operate : E/PC/T/141
page 7
(i) to restrict the quantities permitted to be
marketed or produced of the like domestic
product, or, if there is no substantial domestic
production of the like product, of a domestic
product for which the imported product is
directly substitutable; or
(ïi) to remove a temporary surplus of the like domestic
product, or, if there is no substantial domestic
production of the like product, of a domestic
product for which the imported product is
directly substitutable, by making the surplus
available to certain groups of domestic consumers
from of charge or at prices bolow the current
market level; or
(ii) to restrict the quantities permitted to be pro-
duced of any animal product the production of which
is directly dependent, wholly or mainly, on the
imported commodity, if the domestic production of
that commodity is relatively negligible.
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 per-
mitted to be imported during a specified future period and
of any charge 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 cxpoctod to rule between the two in the
absence of the restrictions. In determining this proportion E/PC/T/141
page 8
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
by state-trading enterprises to an extent greater than would
be permissible under Article 32. E/PC/T/141
page 9.
ARTICLE 27
Non-Discriminatory Administratïon 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 countrios 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
tho following provisions
(a) Wherever practicable, quotas representing the total
amount of permitted imports whether allocated among supplying
countries or not) shall be fixed, and notice given of their
amount in accordance with paragraph 3 (b) of this Article.
(b) In cases in which quotas are not practicable, the
restrictions may be applied by means of import licenses or
permits without a quota.
(c) Members shall not, except for purposes of operating
quotas allocated in accordance with sub-paragraph (d), require
that import licenses or permits be utilized for the importa-
tion of the product concerned from a particular country or
source. E/PC/T/141
page 10.
(d) In cases in which a quota is allocated among
supplying countries, the Member applying the restrictions may
seek agreement with respect to the allocation of shares in the
quota with all other Members having a substantial interest in
supplying the product concerned. 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 ropresenta-
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 thc share of any
such total quantity or value which has been allotted to it,
subject to importation being made within any prescribed period
to which the quota may relate.
3, (a) In cases in which import licenses are issued in
connection with import restrictions, the Member applying the
restriction shall provide, upon the request of any Member
having an interest in the trade in the product concerned,
all relevant information concerning the administration of the
restriction, the import licenses granted over a past recent
period and the distribution of such licenses among supplying
countries, Provided, however, that there shall be no obliga-
tion 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 B/PC/T/141
page 11
or products which will be permitted to be imported during a
specified future period and of any change in such quantity
or value. Any supplies of the product in question which were
en route at the time at which public notice was given shall
not be excluded from entry, Provided that they may be counted,
so far as practicable, against the quantity permitted to be
imported in the period in question, and also, where necessary,
against the quantities permitted to be imported in the next
foIlowing period or periods, and Provided further that if any
Member customarily exempts from such restrictions products
entered for consumption or withdrawn from warehouse for con-
sumption 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.
4. With regard to restrictions applied in accordance
with paragraph 2 (d) of this Article or under paragraph 2 (c)
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, E/PC/T/141
page 12
consult promptly with the other Member or the Organiza-
tion regarding the need for an adjustment of the propor-
tion determined or 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 triplicable, 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. |
GATT Library | kw697sx5865 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Commission A. Sub-Commiittee I on State-Trading (Articles 31 32). Proposal by the United Kingdom Delegation. Supply of information as to State-Trading operations | United Nations Economic and Social Council, July 14, 1947 | United Nations. Economic and Social Council | 14/07/1947 | official documents | E/PC/T/W/244 and E/PC/T/W/236-260 | https://exhibits.stanford.edu/gatt/catalog/kw697sx5865 | kw697sx5865_90050394.xml | GATT_152 | 245 | 1,763 | UNITED NATIONS NATIONS UNIES RESTRICTED
ECONOMIC CONSEIL
14 July 1947
AND ECONOMIQUE
SOCIAL COUNCIL ET SOCIAL ORIGINAL: ENGLISH
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
COMMMISSION A
SUB-COMMIITTEE I on STATE-TRADING
(Articles 31 & 32)
PROPOSAL BY THE UNITED KINGDOM DELEGATION
Supply of information as to State-Trading operations
With reference to the proposal made by the Czechoslovak
delegate in Commission A (E/PC/T/A/PV/27, page 36) for an
addition in connection with this subject, the United Kingdom
Delegation suggest that this addition should be assimilated
to the text of Article 42 paragraph 3 adopted by the Sub-
Committee on the Restrictive Practices Chapter, and approved
by Commission B on 27th June (E/PC/T/112).
Thus the addition might form a new Article at the end
of Section E, reading as follows:
"If representations in pursuance of Article 35 are
made in respect of State-Trading operations, as
defined in Articles 31 and 32, the Member whose
enterprise is involved may withhold -
(e.) confidential information relateding to its
national security; and
(b) on proper notification to the Organization,
information which the Member considers is
not essential to the Organization in conducting
an adequate investigation and which, if
disclosed, would materially damage the
legitimate business interests of its State-Trading
enterprises. In notifying the Organization that
it is withholding information pursuant to this
clause, the Member shall indicate the general
character of the information withheld and the
reasons why it considers it not essential." |
GATT Library | kw808kq3887 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Commission A. Sub-Committee an Articles 14, 15, 15A and 24. Suggested Redraft of some points in Articles 14 24 | United Nations Economic and Social Council, June 1, 1947 | United Nations. Economic and Social Council | 01/06/1947 | official documents | E/PC/T/W/189 and E/PC/T/W/177-207 | https://exhibits.stanford.edu/gatt/catalog/kw808kq3887 | kw808kq3887_90050333.xml | GATT_152 | 645 | 4,235 | ECONOMIC CONSEIL RESTRICTED
AND ECONOMIQUE E/PC/T/W/189
SOCIAL COUNCIL ET SOCIAL 1 June 1947
Original: ENGLISH
SECOND SESSION OF THE PREPARATORY
COMMITTEE OF THE UNITED NATIONS
CONFERENCE ON TRADE AND EMPLOYMENT
COMMISSION A
Sub-Committee an Articles 14, 15, 15A and 24
Suggested Redraft of some points in
Articles 14 & 24
____________
ARTICLE 14
1. Redraft of Paragraph 3 as amended in
E/PC/T/W.183, page 1:
"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 the margins provided for under any
operative agreement resulting from the
negotiations provided for in Article 24, and
if they are not so provided. for shall not
exceed the margin by which the most-favoured-
nation rate exceeded the preferential rate on
10 April 1947."
2. In Annexure A (E/PC/T/W.183, page 2):
(a) delete the words "of the Commonwealth" in
the Item referring to "Dependent territories
of New Zealand";
UNITED NATIONS
NATIONS UNIES E/PC/T/W/189
page 2
(b) delete the words"It is contemplated that"
in line 2 of the footnote.
ARTICLE 24
1. Redraft of the opening sentence of Paragraph 1,
as amended in E/PC/T/W.150, page 11:
"1. Each Member, other than a Member subject-
to the provisions of Article 33, shall, upon the
request of any other Membe or Members, enter into
and carry out negotiations with such other Member
or Members directed to the substantial reduction
of tariffs and other charges on imports and
exports and the elimination of the preferences
referred to in paragraph 2 of Article 14 on a
reciprocal and mutually advantageous basis.
These negotiations shall proceed in accordance
with the following rules:"
2. Redraft of the Australian Amendment to
Sub-paragraph 1(b) (cf. E/PC/T/W.150, page 12):
"(iii) Where the negotiations affect both the
most-favoured-nation rate and the preferential
rate, any negotiated reduction in the most-
favoured-nation rate shall. operate automatically
to reduce or eliminate the margin of preference
applicable to the product, Provided that in
respect of negotiations on particular products
such reductions in both rates may be made as the
parties agree. E/PC/T/W/189
page 3
(iv) No margin of preference shall be
increased."
3. Redraft of Paragraph 3 as amended in
E/PC/T/W.150, page 13:
"3. If any Member considers that any other
Member has failed to fulfil its obligations
under paragraph 1 of this Article, such Member
may refer the matter to the Organization which,
after investigation, shall make appropriate
recommendations to the Members concerned. If
the Organization finds that a Member has failed
without sufficient justification, having regard
to its economic position and the provisions of
the Charter as a whole, to carry out negotiations
with such complaining Member within a reasonable
period of time in accordance with the requirements
of paragraph 1 of this Article, the Organization
may determine the the complaining Member , or in
exceptional cases the Members 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 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 E/PC/T/W/189
page 4
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. "
Note: The Legal Drafting Committee to
be set up at a later date will be
asked to consider the possible
deletion of the last sentence rending:
"The provisions of .......... Article 67, " |
GATT Library | wc510zz0250 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Commission A. Sub-Committee I on State-Trading (Articles 31 32). Notes by the Secretariat on Articles 31 32 | United Nations Economic and Social Council, July 10, 1947 | United Nations. Economic and Social Council | 10/07/1947 | official documents | E/PC/T/W/239 and E/PC/T/W/236-260 | https://exhibits.stanford.edu/gatt/catalog/wc510zz0250 | wc510zz0250_90050389.xml | GATT_152 | 6,037 | 39,994 | UNITED NATIONS NATIONS UNIES
RESTRICTED
ECONOMIC CONSEIL E/PC/T/W/239
AND ECONOMIQUE 10 July 1947
SOCIAL COUNCIL ET SOCIAL ORIGINAL: ENGLISH
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
COMMISSION A
SUB-COMMITTEE I on STATE-TRADING
(Articles 31 & 32)
NOTES BY THE SECRETARIAT
ON ARTICLES 31 & 32
These Notes should be read in conjunction with
the relevant part of the Annotated Agenda for discussion
of Articles 31, 32 and 33 (W.198) and the Report of the
Drafting Committee (E/PC/T/34), referred to as "D.C.
Report".
They indicate briefly points raised in the general
discussion of these Articles in Commission A on 19, 20
and 24 June, and refer to discussions and decisions on
other relevant parts of the Charter.
Page
General Comment 2
1. Rules governing
State-Trading 2
2. Balance of Payments
difficulties 3
3. Disclosure of Information 4
References to other parts of the
Charter 5
Article 31 8
Article 32 16 E/PC/T/W/239
page 2
GENERAL COMMENT
1. Rules governing State-Trading
Note 1 The Czechoslovak delegate (A/PV/14, pages 3,6 and 19)
The question of rules for state-trading is at present
obscured by abnormal post-war conditions, such as
shortage of commodities, balance of payments difficulties,
etc. Rules set up now should cover the period of
transition only. Some, not too detailed, rules are
necessary.
Note 2 The French delegate (A/PV/14, pages 11 & 15)
State-trading should not enjoy any special privileges
nor have any additional burdens. Private trading enjoys
exceptions from non-discrimination (loans, long-range
commercial policy) and the same should apply to state
trading.
Restrictions governing state-trading should not apply
during the transitional period. Rules should not be
too detailed at present.
The rule of non-discrimination should be replaced by
the requirement that state-trading should operate
according to rules which guide private enterprises.
Provisions applicable to state-trading in normal
situations should not be enforced when external trade
is conducted according to governmental programmes.
Note 3 The Canadian delegate (A/PV/14, pages 16 & 37)
The Charter must carefully balance obligations and
benefits for countries with private foreign trade
and for those with a mixed system.
It may be difficult to formulate rules at this stage.
However, certain general rules should be laid down
now, lest state trading should be allowed such greater
freedom and scope that state-trading Members will
assume a favoured position as against countries with
private trading.
Note 4 The New Zealand delegate (A/PV/14, page 25)
Rules should not be too detailed, because, of the
limited experience of state-trading.
Note 5 The United States delegate (A/PV/14, page 28)
The present rules do not go too far; it is absolutely
essential to provide some rules indicating how state
traders should discharge their obligations E/PC/T/W/239
page 3
In comparing obligations of private trading Members
with those of state-trading Members, the whole of
Chapter V must be considered. Negotiations on
tariffs, quotas, etc. are inapplicable to state-
trading countries.
Note 6 The Belgian delegate (A/PV/15, page 10)
The Charter is based on the pattern of competitive
economies. Monopolies create difficulties in
the supervision of international competition.
The application of Articles 31 and 32 should not
be limited by too narrow a wording.
Note 7 The United Kingdom delegate (A/PV/15, page 30)
State-trading is not a new kind of protection,
it is a new method of trading.
There should be rules for state-trading in mixed
economy countries analogous to rules for private
trading.
2. Balance of Payments difficulties.
Note 8 The Canadian delegate (A/PV/14, page 16)
Balance of payments difficulties are dealt with
in specific Articles which apply generally, and
there is no need to provide for these difficulties
encountered by state-traders during the
transitional period.
Note 9 The Czechoslovak delegate (A/PV/14, page 19)
So long as restrictions on foreign trade for
reasons of balance-of-payment difficulties are
general there is no difference between private
and state-trading enterprises. The differences
may be seen later and therefore detailed rules
should be postponed until thon.
Note 10 Extract from the London Report (page 13)
(n) The Preparatory Committee is of the
opinion that the principles and Procedures
for restricing imports under private trade
to safeguard a Members external financial
position should be applied mutatis mutandis
to the restriction (to a greatr extent than
would otherwise be permissible) of imports
y a state-trading organisation. It should, page 4
however, be provided that the disclosure
of information, which would hamper the
commercial operations of such a state-
trading organization, would not be required.
3. Disclosure of Information
The Czechoslovak Amendment to Article 33
(W.198, page 12) was referred to Sub-Committee I.
Note 11 The Czechoslovak delegate (A/PV/17, page 36)
The content of his Amendment was discussed in
London. (Report E/PC/T/33, page 17, Section E.
item (iv); it was decided in New York to
transfer it from Article 31 to 35, where it was
incorporated in a form which did not satisfy a
number of delegations. His delegation feels
strongly about the Amendment.
A stato-trading member should be entitled to
withhold information for the same reasons as
under Article 42:2(c) (i) and (ii), (Cf.W.224,
page 8).
(A/PV/14, page 19) State-trading enterprises
which operate according to commercial
considerations should be under no other
obligation to disclose data on their transactions
than private enterprises.
(Cf. Note 10, last sentence)
Note 12 The United States delegation proposed (W.223, Note 43)
the deletion from Article 27:3 of the words
"Provided however, that there shall be no
obligation to supply information as to the
names of importing or supplying enterprises."
Comment of the United States delegation:
The proposal to delete the proviso permitting
withholding of the names of importing and
supplying enterprises is based on the view
that since the granting of licences to
particular enterprises may frequently constitute
in effect a discrimination against particular
countries, the names of enterprises receiving
licences should not be withheld from Members
which request them.
The delegates for China, Czechoslovakia, New Zealand,
Norway, United Kingdom, opposed the delegation. The
Netherlands delegate wished that such information
should be considered confidential. E/PC/T/W/239
page 5
REFERENCES TO OTHER PARTS OF THE CHARTER
Article 25
Note 13 The United States delegation proposed
the deletion of sub-paragraph 2 (f) inasmuch as its
substance is already covered by sub-paragraph (g) of
Article 37, amended by the same delegation to read:
"(g) Necessary to secure compliance with laws or
regulations which are not inconsistent with the
provisions of Chapter V, such as those relating
to the enforcement of state-trading monopolies,
customs [enforcement] regulations, prevention of
deceptive practices, and the protection of patents,
trade marks and copyrights:"
For discussion in Commission A these two United
States amendments cf. A/PV/21, pages 4 to 8.
No action was taken by Commission A on the United
States amendment to Article 37 (g).
Article 27
Note 14 Commission A. discussed on June 30 (A/PV/21, page 33)
the United States amendments to sub-paragraphs 2 (d)
and (e) (W.223, pages 25-27)
The New Zealand delegate objected to the deletion,
from sub-paragraph 2 (e) of the language
"the shares of various supplying Members...for
the purpose of appraising such commercial
considerations,".
If deleted its substance should be moved to sub-
paragraph 2 (a).
The United Kingdom delegate thought that the point
raised by the New Zealand delegate pertained to
Article 31.
Comment of the United States delegation
"An objection to the mention of the principle of
commercial considerations in this context is that
it seems to imply that the government would have
its own commercial interests in mind (as in the
case of State-trading) whereas in tact govern-
mental allocations should merely reflect the
factor of commercial considerations as it may be
influencing, or may have influenced, all trade,
whether public or Drivate, in the product subject
to the restrictions. This application to quota
allocations of the principle of commercial
considerations, however, is already fully
covered by sub-paragraph (a)."
Article 37
Note 15 Commission B (W.228, page 8) adopted the
proposal to delete the words
"are taken pursuant to international
agreements or" from sub-paragraph (j) which
now reads as follows: E/PC/T/W/239
page 6
"(j) Relating to the conservation of
exhaustible natural resources if such
measures are made effective in
conjunction with restrictions on domestic
production or consumption:"
(Cf. Notes 82, 83 & 84)
Article 39
Note 16 Commission B (E/PC/T/112) approved the deletion
of the following words from sub-paragraph 2 (a):
"(i.e. trading agencies of governments or
enterprises in which there is effective
public control)".
Note 17 The following new paragraph was added to
Article 39.
"4. In this Article 'public commercial
enterprises' means:
(a) trading agencies of governments, and
(b) enterprises wholly or mainly owned by
public authority over which there is
effective control by public authority,
including control of engagement in the
practices listed in paragraph 3.
'Privatc commercial enterprises' means
all other commercial enterprises."
It was the understanding of Commission B that the
above definition was conceived mainly for the
purposes of Chapter VI.
Article 45
Note 18 Commission B (E/PC/T/112 Corr. 1)
decided to delete sub-paragraph 1 (b) and
paragraph 2.
New Article 57A
Note 19 The Netherlands delegation (W.207) proposed a new
Article 57A to read, inter alia:
"1. The general procedure of this Chapter
shall be followed, where appropriate in view
of the multilateral aspects of the special
difficulties which are considered to have
arisen or are likely to arise, when in the
case of any primary commodity Members enter
into consultation or negotiations about
a. subsidizations as referred to in
Article 30: 4;
b. the maximum price margin on the
importation or exportation as referred
to in Article 32."
(Cf. A/PV/19, page 10) E/PC/T/W/239
page 7
.
Note 20 Comment of the Netherlands delegation: (W.207)
"Though in Article 30 an explicit statement
is made that these consultations should
follow the procedure of Chapter VII such is
not the case in Article 32. Moreover, even
tariffs, preferences, special prices, marks
of origin, mixing requirements and other
consultation and recommendation under Chapter V
could in many cases, in respect to a primary
commodity, follow the procedure of a study or
a conference, resulting in an arrangement or
an agreement."
Note 21 In the seventeenth meeting of Sub-Committee on
Chapter VII, on 26 June, the Secretary reported
that the Chairman of Commission B had ruled
that the matters referred to in tho Netherlands
amendment were in the first place matters for
Commission A.
Note 22 The United Kingdom delegate (A/PV/19, page 11)
opposes the Netherlands proposal, which would
bring subsidies, maximum price margins of
Article 32, etc. into the present Article.
Article 59 (now 82)
Note 23 Amendment adopted by Commission B
(Cf. W.228, pages 8 and 19, and B/SR/17, page 19)
"1. The provisions of Chapter VII shall not
apply:
a) to any bilateral agreement relating
to the purchase and sale of a
commodity falling under Section E
of Chapter V."
The Chairman of the Sub-Committee of Commission B
declared that this paragraph in no way precluded
a state-trading country from being a party, along
with any other Member, in any commodity agreement.
Note 24 Comment of the Sub-Committee
"The new text of this Article is designed
to graduate the extent to which certain
types of agreements are to be excepted
from the provisions of Chapter VII.
Bilateral state-trading agreements are
still entirely excluded from the
application of the Chapter." E/PC/T/W/239
page 8
ARTICLE 31
1. Title of the Article
Note 25 United States amendment (Cf. W.198, page 2)
31
The New Zealand delegate (A/PV/14, page 24)
The change is not in agreement with the contents
of the Article. He proposes the following title:
"The Administration of State-Trading
Enterprises."
Note 26 The United States delegate (A/PV/14, page 27)
31
The New Zealand suggestion does not meet the case.
Section E. covers two distinct subjects which the
titles of Articles should indicate:
Article 31 contains the obligation to observe the
principle of most-favoured-nation treatment, and
Article 32 covers the obligation to negotiate,
for the purpose of the expansion of foreign trade.
2. Paragraph 1
Czechoslovak amendment (Cf. W.198, page 2)
United States amendment (Cf. W.198, page 3)
Note 27 The United States delegate (A/PV/14, page 8)
31:1
The cumbersome part of the text was redrafted to
read "purchases and sales affecting international
trade".
In order to avoid the implication that exactly
the same price must be offered or that goods
must be offered at the same price in different
markets teh farmer wording was replaced by
reference to the general most-favoured-nation
treatment parallel with the provision of Article 14.
Note 28 The Chilean delegate (A/PV/14, page 10)
31:1
Accepts the United States amendment if its meaning
is that state-trading enterprises, when exporting
or Importing, must be guided solely by commercial
considerations.
It should be recorded in the report that, according
to item (e), page 27, of D.C.Report, E/PC/T/W/239
page 9
"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, provided that
such different prices are charged for commercial
reasons, to meet conditions of supply and demand
in export markets."
Note 29 The United Kingdom delegate (A/PV/14, page 11)
31:1
The interpretation given in item (e), page 27, of
the D.C. Report (Cf. text in Note 28) should be
kept on record.
Note 30 The Chinese delegate (A/PV/14, page 13)
31:1
Prefers the present text "shall be accorded treatment
no less favourable..." to the reference to most-
favoured-nation treatment, because the latter is
confusing.
There should be a provision for the case of emergency
when a product is urgently needed or when it has to
be disposed of in a short time.
Note 31 The New Zealand delegate (A/PV/14, page 24)
31:1
The expression "such enterprise shall" is not
consistent with the fact that countries and not
enterprises are Members.
Notwithstanding the United States redraft of the
last phrase, the words "having regard to any
differential customs treatment maintained.....of
the Charter" should be retained.
Note 32 The United States delegate (A/PV/14, page 27)
31:1
The language "such enterprise shall" can be recast
to meet the objection that states and not enterprises
are Members.
Note 33 The South African delegate (A/PV/14, page 29)
31:1
The reference to Article 14 in the United States
amendment is an improvement of the text but at present
the final texts of Articles 14, 15 and 24 is not known.
"commercial considerations"
Note 34 The United States delegate (A/PV/14, page 8)
31:1
The requirement of "commercial considerations" was E/PC/T/W/239
page 10
relegated to the newly recast sub-paragraph (b)
(A/PV/14, page 27). These words cover the
language "having due regard to any differential
customs treatment... " which was therefore deleted.
The matter should be considered.
Note 35 The French delegate (A/PV/14, page 21)
31:1
In some circumstances state-trading and private
enterprises will not operate strictly according
to commercial considerations. Facilities of
payment, future benefits, loans, financial interest
in a firm, may influence purchase and sales of
both enterprises.
Note The Canadian delegate (A/PV/14, page 22)
31:1
The term "commercial considerations" should not
be defined in too narrow terms, it does not simply
mean the lowest price. Other considerations are
legitimate.
Note 37 The New Zealand delegate (A/PV/14, page 24)
31:1
Is the interpretation that the words "commercial
considerations" imply, to buy or sell at the best
price, consistent with the meaning of most-favoured-
nation treatment?
(A/PV/21, page 34) There is a difference between
international competition and trade based on
commercial considerations. Commercial considera-
tions may induce countries to ignore prices current
in international trade.
Note 38 The South African delegate (A/PV/15, page 19)
31:1
States are influenced by non-commercial considerations
and therefore the rule of commercial considerations
should be made obligatory on state-trading.
through public offers or bids or otherwise"
Note 39 The United States delegate (A/PV/14, page 8)
31:1
These words were introduced to provide a criterion
of the expression "commercial considerations".
(A/PV/14, page 14) The words "or otherwise" enable
the state-trading enterprise to use other means. E/PC/T/W/239
page 11
Note 40 The United Kingdom delegate (A/PV/14, page 11)
31:1
This expression is too narrow. It puts a state-
trading enterprise under a more strict obligation
than a private firm, The following wording would
be more appropriate:
"and shall afford the enterprises of all
Members fair opportunity to participate in
such purchases and sales."
Note 41 The Brazilian delegate (A/PV/14, page 17)
31:1
These words should be deleted from the United
States amendment because they are impracticable.
Note 42 The New Zealand delegate (A/PV/14, page 24)
31:1
The specific reference to "public offers or bids"
is inappropriate considering the scale of
operations of state-trading enterprises, and
should be deleted.
Note 43 The Chilean delegate (A/PV/15, page 2)
31:1
The interpretation of these words given by the
United States delegate, to the effect that a Member,
whether state-trading or not, cannot be obliged
to carry out its foreign trade only through public
offers or bids, should be recorded. (Cf. Note 39)
"tied loans"
Note 44 The Chinese delegate (A/PV/14, page 13)
31:1
The second sentence: "To this end such enter-
prise shall, ......" does not cover cases in which
international loans are involved.
Note 45 The United States delegate (A/PV/14, page 14)
31:1
The question of "tied loans" is covered in item (v)
of Section E on page 17 of the London Report as
follws:
"The view was generally held that a country
receiving a loan would be free to take this
loan into account as a "commercial consideration"
when purchasing its requirements abroad. The
position of countries making such " tied loans"
was another question." E/PC/T/W/239
page 12
In his opinion this interpretation is correct
Note 46 The Chinese delegate (A/PV/14, page 18)
31:1
In spite of the interpretation of the London
Report, the expression "commercial considera-
tions" does not cover "tied loans".
3. Paragraph 2
Czechoslovak amendment (Cf. W. 198, page 4)
United States amendment (Cf. W.198, pages 4 & 5)
"for use in the production of goods for sale".
(in square brackets in the D.C. Report).
Note 47 Article 15 The Sub-Committee on Articles 14, 15
15:5 and 24 approved tentatively on 10 July the
following text of paragraph 5 (re-numbered as para-
graph 6) of Article 15:
"6. The provisions of this Article shall
not apply to the procurement by govern-
mental agencies of products purchased for
governmental purposes and not for re-sale
or use in the production of goods for sale,
nor shall they apply to governmental
purchases designed to give effect to a
subsidy permitted under Article 30."
Note 48 The Czechoslovak delegate (A/PV/15, page 5)
31:2
Accepts the word "re-sale" instead of "sale"
at the end of the first sentence of paragraph
2 as amended by the Czechoslovak delegations
Note 49 The United States delegate (A/PV/15, page 6)
31:2
Is in favour of maintaining those words. He
prefers the Czechoslovak amendment, with these
words inserted, to his own draft,
Services, (electric power, etc.) are not
covered by these words.
(The word "London" in line 3 page 5 of W.198
should read "New York") E/PC/T/W/239
page 13
Note 50 The Chilean delegate (A/PV/15, page 4)
31:2
Wishes to delete these words if the majority agrees
to it.
Note 51 The New Zealand delegate (A/PV/15, page 7)
31:2
Maintains his reservation because various operations
of his government cannot be brought within the compass
of these words.
Note 52 The Belgian delegate (A/PV/15, page 8)
31:2
Is in favour of maintaining these words, and wishes
to revert to the situation as interpreted by the
London Report (page 17, Section E, item (v)):
"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 prompted by the consideration
that in some countries purchases of industrial
and other equipment of various types from abroad
might well be effected through the medium of
state enterprise and that, while it might be
difficult in certain circumstances to observe
the rule of "commercial considerations" for such
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 be given to all relevant circumstances."
4. Paragraph 3
Belgian amendment (Cf. W.198, page 5)
Chinese amendment (Cf. W.198, page 6)
Czechoslovak amendment (Cf. W.198, page 5)
Chilean amendment (Cf. W.198, page 6)
United States amendment (Cf. W.198, page 5)
Amendments to Article 39, (Cf. Notes 16 & 17).
Note 53 The Belgian delegate (A/PV/15, pares 8 & 12)
31:3
If, in the execution of a governmental programme
of production, established by law, an enterprise is
required to purchase in or sell to a specific country,
it is the law at which the Charter (Article 15) aims. If, however, such discrimination is a consequence
of governmental control in the enterprise, this
enterprise operates contrary to the present Article 31.
Note 54 The English text of the Belgian amendment (W.65)
31:3 should be corrected to read:
"this Article shall apply when a Government
of a Member exercises, directly or indirectly,
an effective control over enterprises,
organizations or agencies, or over their
trading operations only, whether this control
is exercised by virtue of legal provisions,
or as the consequence of granting exclusive
or special privileges, or merely in fact."
Note 55 The French delegate (A/PV/15, page 11)
31:3
A private enterprise should not be subjected to
provisions of Article 31 merely because its
operations form part of a governmental programme
of production.
Note 56 The Chinese delegate (A/PV/15, page 13)
31:3
Prefers alternative B because privilage granted
may be withdrawn and yet the Government will be
legally able to exercise control. The Chinese
amendment (W.70) differs from alternative B only
in the insertion of the word "Member" before the
word "Government" in the first line.
Note 57 The Czechoslovak delegate (A/PV/15, page 15)
31:3
Neither paragraph 3 nor alternative A or B are
necessary though perhaps this Article will then
not cover all future cases.
The Organization should determine whether or not
an enterprise was a state-trading enterprise.
Note 58 The Chilean delegate (A/PV/15, page 13)
31:3
His amendment is prompted by the existence of the
Corporacion de Ventas de Salitre y Soda de Chile
which has the exclusive right of trading in natural
nitrate of soda, and which should not be considered
a state-trading enterprise since the law of the
country does not do so. Yet the text of the D.C.
Report makes paragraph 3 applicable to this case
because of certain control and privileges.
Paragraph 3 should be deleted because it was very
difficult to find a definition of state-trading enter-
prises. The matter should be considered by the sub-
committee. E/PC/T/W/239
page 15
Note 59 The Chilean delegate proposed the following definitions
31:3 of a state-trading enterprise (A/PV/15, page 15):
An enterprise should not be considered a state enterprise
unless the law of the country considers it to be one.
An enterprise should be considered a state enterprise
when a government participates by more than 50 per cent
in its capital.
Note 60 The United States delegate (A/PV/15, page 17)
31:3
If the operations of an enterprise, whether labelled as
state or as private enterprise, can render other pro-
visions of Chapter V inoperative, the government has
the obligation to ensure that these operations are in
conformity with Article 31. In cases mentioned by the
French (Cf. Note 35) and Chilean (Cf. Note 58) delegates,
when the external operations are carried out according
to commercial principles, there is no danger in the
application of Article 31.
He supports the Czechoslovak suggestion to delete para-
graph 3 if the remaining parts of Article 31 clearly
indicate that the Member has to ensure that the enter-
prises defined therein discharge the obligations of this
Article.
Note 61 The New Zealand delegate (A/PV/15, page 23)
31:3
If paragraph 3 is deleted the words
"and exercises effective control over the
trading operations of such enterprise"
should be re-introduced in the first part of Article 31.
Need for definition
Note 62 The Canadian delegate (A/PV/15, page 18)
31:3
No definition is needed because according to paragraph
1 a state enterprise or any other enterprise "which
imports, exports." must adhere to the rule of non-
discrimination.
Note 63 The South African delegate (A/PV/15, page 19)
31:3
A definition is necessary so as to distinguish the
two groups of enterprises; those which may act for
non-commercial reasons, and those which would normally
act for commercial reasons. E/PC/T/W/239
page 16
ARTICLE 32.
1. Title of the Article
Note 64 United States amendment (Cf. W.198, page 7)
32
No comment.
2. Paragraph 1.
Chinese amendment (Cf.W.198, page 7)
Czechoslovak amendments (Cf. W.198, page 7)
United States amendments (Cf.W.153, pages 8-10)
Note 65 The Chinese delegate (A/PV/17, page 20)
32:1
The words "to limit cr reduce... monopolised
product or should be deleted from sub-paragraph
1 (a) because paragraph 1 already provided for
adequate quantities at reasonable prices.
If the provision for negotiations of price margins
be maintainece, reference to margins of profits is
necesary.
Note 66 The Czechoslovak delegate (A/PV/15, page 24)
His amendment enables governments to establish listed of
priorities of imported goods during a period of shortage
of foreign currencies.
Import monopolies: Negotiations about margins hamper
schemes for the stabilization of prices paid to home
producers, and would bring the Member in conflict with
the rules of "commercial considerations" or of "non-
discrimination".Total quantities of an imported
commodity or other aspects may be negotiated.
Export monopolies: The present rules are inoperative
unless the state monopoly holds also a monopoly in the
world market.
Note 67 The United States delegate (A/PV/15, page 27)
The New York draft failed to establish a parallel to
tariff negotiations. The words "any other arrangement
to accomplish the purpose of paragraph 1 of this Article"
provide for more flexibility and for opening of
negotiations upon request of another Member. E/PC/T/W/239
page 17
Export monopolies: Negotiations are necessary, as a
parallel to the obligation to negotiate export duties
because a country can restrict exports of raw material
to protect its own manufacturing industry.
Note 68 The United kingdom delegate (A/PV/15, page 31)
32:1
The United States amendment, by attempting to merge
Article 32 and 33, introduces the concept of
negotiations about quantities which will not work.
Negotiation on global quantities must include prices
as recognised by the Czechoslovak amendment, and "it
is a foregon conclusion that such negotiations will
never be carried through."
The character of this Article as drafted in New York
should be maintained.
Paragraph 1(b) can be amended so as to include
Given the willingness to disclose calculation, the
elements of which are the same in monopolistic as in
private trading, price margins can be established.
Fluctuation of prices can be met by averaging over
time and consignments.
Shortage of foreign currencies is dealt with by
Article 26 with a reference to Article 32.
Stabilization of prices paid to home producers is
possible in the form of a variable subsidy.
Note 69 The French delegate (A/PV/17, page 5)
32:1
Subsidies may help in some cases, but parliaments
are sometimes sensitive to budgetary provisions.
The French delegation cannot accept Article 32
without a qualification.
Note 70 The Canadian delegate (A/PV/15, Page 37)
32:1
The United States and the Czechoslovak amendments
introduce fundamental changes in tariff negotiations
and in the structure of the Charter.
It is protective margins which should be negotiated:
Countries with private trading negotiate customs
tariffs,
state-trading countries should negotiate protective
price margine set up by monopolies. E/PC/T/W/239
page 18
The Charter does not provide for negotiation on
quantities. To negotiate quantities and prices
is inconsistent with the concept of bilateral
procedure of tariff negotiations; such concept
corresponds to the procedures of Chapter VII,
which operater under conditions not applicable
to state-trading.
If it is impossible to determine the difference
between the bu ing price of the imported product
and the selling price of the final mixed, blended
or processed product, the difference between the
importing price and the price paid to domestic
producers can in such cases be ascertained.
Subsidies could be applied in cases of stabilization
schemes for domestic prices, if the negotiated margin
does not allow the maintenance of a sufficiently high
domestic price.
Note 71 The United States delegate (A/PV/15, page 43)
The United States amendement does not intend to
merge Articles 32 and 33; it provides for
bilateral negotiations product by product which
is preferable to no negotiations at all in
cases in which it was impossible to formulate
the request for negotiations on the basis of
a marginal increase.
The initiative to negotiate with the importing
monopoly should lie with the exporting Member
who can suggest other bases of negotiations if
the types suggested in 2 (c) and (b) of the
amendment are not practicable.
Note 72 The Netherlands delegate (A/PV/15, page 47)
No objections to the United States amendment.
It should, however, state clearly the dis-
tinction between bilateral and multilateral
The fullstop after the word "Article" in
2 (c) of the amendment should be replaced
by a comma.
The Czechoslovak amendment has many merits. E/PC/T/W/239
page 19
Note 73 The South African delegate (A/PV/17, page 4)
32:1
The United States amendment allows more latitude for
bargaining, thus making for the liberalization of trade.
Note 74 The Chilean delegate (A/PV/17, page 7)
32:1
While not objecting to the principle of paragraph
1 (a) thinks that it should apply only when a
substantial portion of the total national production
of the monopolised product is consumed in the country
of origin.
He proposes to add the wording:
"Provisions of paragraph 1 (a) should not apply
if total exports of a monopolised product
exceed 90 per cent of the total output."
Note 75 The United Kingdom delegate (A/PV/17, page 13)
32:1
proposes to redraft sub-paragraph 1 (b) on the
following lines which include the Canadian suggestion
to introduce the price paid to domestic producers as
an alternative test:
Starting in the terms of the United States
amendment the new draft should make provisions
for negotiations for the purpose of limiting or
reducing the protection afforded to domestic
producers through monopolistic operations.
The Mombers should negotiate about the margin
between landed cost price of the product and
either the price to home consumers, or, as a
second alternative, the price paid to home
producers.
If this is accepted details about subsidized
margins of profits, etc., can be deleted.
Note 76 The Canadian delegate (A/PV/17, page 14)
32:1
supports the redraft of sub-paragraph 1(b)
proposed by the United Kingdom delegate
(Cf. Note 75)
Note 77 The Australian delegate (A/PV/17, page 16)
32:1
Wishes to retain Article 32 as drafted in New York.
The complexity of negotiations with single monopoly
countries will not be removed by the addition of
more details and criteria. E/PC/T/W/239
page 20
The alternative test of selling price to
domestic consumers will not be practicable in
all cases.
To negotiate total imports by a monopoly is of
no interest to an exporting country which can sell
all it wishes.
Global quantities provided in the United States
amendment require negotiations about quotas with
several countries and such multilateral negotiations
will not be practicable.
To apply procedures of Chapter VII to negotiations
will in some cases hamper the activities of state-
traders.
Note 78 The New Zealand delegate (A/PV/17, page 20)
32:1
Supports the Czechoslovak amendment because of its
economic and administrative practicability.
Negotiations about margins are not possible in
all cases.
Monopolies operating in foreign and domestic
trade for the stabilization of cost of living,
cannot negotiate under sub-paragraph 1 (a),
because violent fluctuations of world market
prices will destroy national stabilization policy.
Note 79 The Netherlands delegate (A/PV/17, page 22)
32:1
Article 32 interferes considerably with the
stabilization schemes in the Netherlands.
Note 80 The Czechoslovak delegate (A/PV/17, page 24)
32:1
Negotiations about price margins may not in
many instances be practicable; he draws attention
to the opinion of the International Chamber of
Commerce (Cf. W.198, top of page 8).
He agrees tentatively with the substance of the
United States amendment.
3. Paragraph 2
Czechoslovak amendment (Cf. W.198, page 10)
United States amendment (Cf. W.198, page 10) E/PC/T/W/239
page 21
Note 81 No comment.
32:2
4. Paragraph 3
Czechoslovak amendment (Cf. W.198, page 10)
United States amendment (Cf. W.198, page 10)
(Cf. Note 15 on Article 37)
Note 82 The United States delegate (A/PV/15, page 28)
His amendment to paragraph 1 and 2 makes paragraph 3
redundant. The exporting country which negotiates
with a monopolistic country is interested in lower
selling prices only when unrestricted quantities are
allowed to be imported.
The amendment permit the exporting country itself to
introduce the requirements of "reduced prices" and
"unrestricted quantities" into the negotiations.
Note 83 The United Kingdom delegate (A/PV/15, page 36)
The New York draft should be maintained. The
obligation to satisfy domestic demand is a
counterpart of the obligation to renounce
quantitative restrictions for protective purposes
(Article 25).
(A/PV/17, page 14). Paragraph 3 is not a rule
for negotiations but a requirement to satisfy
domestic demand; without it the monopoly would
have the effect of quantitative restrictions.
Note 84 The Canadian delegate (A/PV/17, page 16)
32:3
Paragraph 3 should be maintained, lest monopolies
operate as quantitative restrictions. These Pre,
with some exceptions, ruled out from private
trading.
5. Paragraph 4
Czechoslovak amendment (Cf. W.198, page 11)
United States amendment (Cf. W.198, page 11)
Norwegian amendment (Cf. W.198, pages 11 - 12) E/PC/T/W/239
page 22
Note 85 The United States delegate (A/PV/15, page 29)
32:4
Paragraph 4 is redundant because there is no
more reason to consider the revenue of some
monopolies than to consider the revenue
character of tariffs.
Note 86 The Norwegian delegate (A/PV/17, page 3)
32:4
Monopolies established for cultural, humanitarian
and social reasons would, by negotiating margin,
subordinate social policy to commercial policy,
which cannot be expected.
Note 87 In the discussion of Article 37 (a) and (b),
37 (Commission A, Cf. A/PV/25, page 21), on the
liquor and wine monopoly in Norway (Cf. D. C.
Report, page 31, Specific Comment), the
Norwegian delegate wished to postpone his decision.
until after the final wording of Article 32:4.
Note 88 The Czechoslovak delegate (A/PV/17, page 29)
32:4
Supports his own and the Norwegian amendment,
subject to changes of paragraphs 1, .2 and 3.
Note 89 The Canadian delegate (A/PV/17, page 29)
32:4
Support in principle the Norwegian amendment
and suggests redrafting by the Sub-Committee.
Note 90 The Chilean delegate (A/PV/17, page 31)
32:4
The Norwegian amendment is a useful proposal
and should be referred to the Sub-Committee.
Note 91 The United Kingdom delegate (A/PV/17, page 31)
32:4
Approves, in principle, the Norwegian amendments.
Possibly Article 37 would be a better place for
it. (Cf. Note 87).
6. Suggested now Paragraph
Netherlands amendment (Cf. W.198, page 11) E/PC/T/W/239
page 23
Note 92 The Netherlands delegate (A/PV/15, page 46)
32:4 (new)
His country attaches great importance to
inter-governmental commodity arrangements
on a multilateral basis.
Requests for fixing price margins made
during tho present tariff negotiations could
not be met by his delegation because the world
market price was unknown. Given violent price
fluctuation, such as for wheat, averaging over
time does not help to fix maximum margins
applicable in the future.
(A/PV/17, page 2). Negotiations about maximum
price margins are of two distinct kinds: on a
bilateral basis analogous to tariff negotiations,
and, for primary products, on a multilateral
basis according to procedures of Chapter VII.
(A/PV/17, page 23). Commodity agreements will
dispose of subsidies, countervailing duties, etc.
The Organization should study the real causes of
fluctuation of world market prices (Cf. Notes 19,
20 and 21).
Note 93 The United Kingdom delegate (A/PV/17, page 3)
32:4 (new)
Opposes the introduction of procedures of Chapter
VII into the bilateral concept of Article 32.
Averaging over time would flatten the curve of world
market price. (Cf. Note 68, paragraph 6)
Note 94 The United States delegate (A/PV/17, page 26)
32:4 (new)
Cannot accept the Netherlands amendment, and
opposes any change which introduces procedures
of Chapter VII in Article 32. Paragraph 3
enviages bilateral situation comparable with
tariff negotiations. Procodures of Chapter VII
would impede the obligation of the single
monopoly country to negotiate. |
GATT Library | hf592zz6313 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Commission A. Sub-Committee II on State-Trading (Article 33). Notes by the Secretariat on Article 33 | United Nations Economic and Social Council, July 11, 1947 | United Nations. Economic and Social Council | 11/07/1947 | official documents | E/PC/T/W.240 and E/PC/T/W/236-260 | https://exhibits.stanford.edu/gatt/catalog/hf592zz6313 | hf592zz6313_90050390.xml | GATT_152 | 1,101 | 7,201 | UNITED NATIONS NATIONS UNIES RESTRICTED
ECONOMIC CONSEIL E/PC/T/W.240
AND ECONOMIQUE 11July 1947
SOCIAL COUNCIL ET SOCIAL Original: English
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
COMMISSION A
SUB-COCOMMITITTEE II on STATE-TRADING
(Article 33)
NOTES BY THE SECRETARIAT
ON ARTICLE 33
These Notes should be read in conjunction with
the relevant part of the Annotated Agenda for discussion
of Articles 31, 32 and 33 (W.198) and the Report of the
Drafting Committee (E/PC/T/34), referred to as "D.C.
Report".
They indicate briefly points raised in the
general discussion of this Article in Commission A, on
24 and 25 June.
ARTICLE 33
United States amendment (Cf. W.198, page 12)
New Zealand amendment (Cf. W.198, page 12)
Note 1 The New Zealand delegate (A/PV/17, page 37) in a
statement on the New Zealand amendment:
The present Charter provides for both, liberal
trade and complete monopoly of foreign trade,
but there is no provision for a pattern like
that of New Zealand with planned foreign trade.
Therefore the New Zealand amendment is proposed.
The contention that quantitative regulations are
always restrictive is a fallacy which confuses
cause and effect. Chapter VII admits the
expansionist use of controls.
If there is no effective demand the abolition
of trade barriers will have no effect on the
volume of world trade.
UNITED NATIONS
NATIONS UNIES E/PC/T/W.240
page 2.
Expansionist policy of controls, in
conjunction with Chapter III, can expand
world trade.
Under the present Charter, a country which
plans its trade to achieve high effective demand
and full employment cannot join the I.T.O.
The objectives of full employment, high
effective demand and economic development
require some degree of economic planning. The
Charter cannot ban economic planning.
The present exceptions for reasons of balance
of payments difficulties (Article 26) are not
applicable to an economy of the New Zealand
type. In his opinion his amendment is rightly
placed in Article 33 which deals with the
complete state monopoly of foreign trade.
Tha amendment requires the Member to use, after
consultation with the I.T.O., for its imports
the whole balance of payments, and not to use
discrimination.
The obligations conceived in subparagraphs (i)
and (ii) of paragraph 2 (a) are weightier than
those elsewhere in the Charter.
The objection of abuse of the provisions of the
amendment is met by reference to many escape
clauses in the Charter.
Note 2 The Czechoslovak delegate (Cf. A/PV/17, page 45)
supports the New Zealand amendment which
contributes towards a fair balance of the Charter.
This will enable countries of all economic systems
to cooperate in the expansion of world trade.
Note 3 The United States delegate (Cf. A/PV/17, page 46)
The New Zealand amendment should be placed in
Section C dealing with quantitative restrictions.
It exempts a Member completely from the provisions
of that Section.
Although not intended, the amendment may destroy
the structure of the Charter which was not
conceived to state merely the general rule of
"not to injure other Members' trade". The
complete development of all kinds of protection
for domestic industries would rest solely in the
will of the government.
Note 4 The South African delegate (A/PV/17, page 51)
The New Zealand amendment would not destroy the
structure of the Charter; it is less drastic
than Article 33.
Non-discrimination, one of the main objectives
of the Charter, cannot be imposed on countries E/PC/T/W.240
page 3.
of the New Zealand economic system, because the
very element of that system is discrimination.
The Charter should be a compromise and should
accommodate all systems.
The New Zealand amendment provides for some degree
of protection for other Members interests and is
nearer to the objectives of the Charter then the
present Article 33.
Note 5 The Canadian delegate (A/PV/18, page 2)
The New Zealand amendment creates a large loophole
in the quantitative restrictions, and a major
change in the principles of the Charter.
The present Charter allows for planning foreign
trade and economic development. The aims covered
by the amendment are provided for in the Charter
in a general way.
The necessary detailed provisions should be
examined by the Sub-Committee.
Note 6 The Australian delegate (A/PV/18, page 5)
Expresses strongest sympathy with the New Zealand
domestic policy of high levels of employment and
effective demand.
Increasing international specialization developed
by protection is a further requirement for
expanding world trade, but an unwise use of
protection may lead to a contraction of world
trade. The misuse of protection is the critical
issue which may lead to the formation of isolated
economies and to low standards of living.
The London draft contains provisions for the
New Zealand type of economies and for the
development of national resources without the
help of foreign capital.
New Zealand wishes to plan international trade as
an end in itself. Such policy must be
consistent with the general purposes of the
Charter and with the interests of other Members.
The Charter is intended to impose some degree of
discipline in the use of protection, and
therefore requires the planning countries to
fulfil the same obligations.
The amendment should be referred to a small
Sub-Committee which would examine the question
whether it were possible - without destroying
the structure of the Charter - to make
provisions for the New Zealand type of
economies in those Sections which deal with
parallel obligations of other countries, as
for instance in the Section dealing with
quantitative restrictions. E/PC/T/W.240
page 4.
Note 7 The Belgian delegate (A/PV/18, page 12) supported
the statement made by the Canadian delegate.
Note 8 The United Kingdom delegate (A/PV/18, page 12)
His delegation has studied the New Zealand
amendment with sympathetic interest. The case of
this type of economy is largely and fairly
provided for in Chapters III and IV, and there is
a good measure of latitude in other parts of the
Charter to meet special cases. The present
Charter is designed to admit all countries to the
I.T.O.
He agrees to the formation of a competent
Sub-Committee to deal with the amendment.
Note 9 The New Zealand delegate (A/PV/18, page 15)
Article 35 to which the New Zealand amendment
refers limits the use of protection, the
development of which is thus not solely "resting
in the will of the planning country".
His reading of the London Report (pages 12-14,
Restrictions to safeguard the Balance of Payments)
is that a selective import policy is to be
discontinued when the country has enough foreign
exchange to finance all types of imports.
The present Charter forces certain countries to
choose between liberal trade and state monopoly
and may push them towards the latter system. |
GATT Library | xg216yb5931 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Commission A. Sub-Committee on Articles 14, 15, 15A 24. Draft amendment to the General Agreement on Tariffs and Trade, as an addition to Article XXV, proposed by the Australian Delegation | United Nations Economic and Social Council, June 13, 1947 | United Nations. Economic and Social Council | 13/06/1947 | official documents | E/PC/T/W/193 and E/PC/T/W/177-207 | https://exhibits.stanford.edu/gatt/catalog/xg216yb5931 | xg216yb5931_90050337.xml | GATT_152 | 355 | 2,280 | ECONOMIC CONSEIL E/PC/T/W/193 13 June 1947
AND ECONOMIQUE ORIGINAL: ENGLISH
SOCIAL COUNCIL ET SOCIAL
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
COMMISSION A
Sub-Committee on Articles 14, 15, 15A & 24
DRAFT AMENDMENT TO THE GENERAL AGREEMENT ON TARIFFS
AND TRADE, AS AN ADDITION TO ARTICLE XXV,
PROPOSED BY THE AUSTRALIAN DELEGATION
"1. after the expiration of three years from the day on which
this Agreement enters into force, a contracting party may, with-
out withdrawing from the Agreement, negotiate a yariation in the
treetment provided for an item by Article VIII with only such
other contracting parties as are the principal supplier of the
Product.
2. Subject to the provisions of Article XIX, the contracting
parties agree that they will accept such variation in the treat-
ment provided for in Article VIII as any be agreed between the
other contracting parties referred to in paragraph 1.
Comment.
1. Para. 1 of the amendment gives to any party the right at
the end of three years -
(a) to select the principal suppliers of a commodity
(b) to negotiate a variation in the tariff of the item
without denouncing the whole agreement or seeking
the consent of all the signatories to the the variation.
2. Aarticle VIII reters to the tariff rates to be applied to
the trade of members. Paragraph of the above amendment
provides a machinery for negotiating with some only of the
members a variation in the rate for any one item. It seems
necessary therefore to incorporate, formally, an acceptance
by the other members of the results of the negotiation. Other-
wise their individual consent to the modification of the original
Agreement would still have to be sought and the purpose of the
amendment is to avoid that. Paragraph 2 is designed to meet
this requirement.
3. Provision is made in Article XIX which would unable any con-
tracting party that is dissatisfied with the choice of principal
supplier or with the extent of a negotiated varation to seek
consultation and the intervention of the Interim Tariff Committee.
UNITED NATIONS
RESTRICTED
NATIONS UNIES |
GATT Library | bb083sm9639 | Second session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Commission A. Sub-Committee on Articles 14, 15, 15a and 24 | United Nations Economic and Social Council, June 10, 1947 | United Nations. Economic and Social Council | 10/06/1947 | official documents | E/PC/T/W/183 and E/PC/T/W/177-207 | https://exhibits.stanford.edu/gatt/catalog/bb083sm9639 | bb083sm9639_90050324.xml | GATT_152 | 432 | 2,922 | UNITED NATIONS NATIONS UNIES RESTRICTED
ECONOMIC CONSEIL E/PC/T/W/183
AND ECONOMIQUE 10 June 1947
SOCIAL COUNCIL ET SOCIAL ORIGINAL: ENGLISH
SECOND SESSION OF THE PREPA RATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT
COMMISSION A
Sub-Committee on Articles 14, 15, 15a and 24
Suggested Redraft of Paragraph 2 of Article 14 and
Annexure A, with Suggested New Paragraph 3 for
Article 14.
PARAGRAPH 2
2. The provisions of paragraph 1 of this Article shall
not be construed to require the elimination, except as pro-
vided in Article 24, of any preferences in respect of im-
port duties or charges or internal taxes 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 Annexure A to
this Charter.
(b) Preferences in force exclusively between two or
more territories which on 1 July 1939 were con-
nected by common severeignty or relations of
protection or suzerainty and which are listed in
Annexures B, C, D ... of this Charter.
(c) Preferences in force exclusively between the
United States of America and the Republic of Cuba.
(d) Preferences in force exclusively between neighbor-
ing countries listed in Annexures ,
and of this Charter.
PAPAGRAPH 3
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 the margins provided for under
any operative agreement resulting from the negotiations pro-
vided for in Article 24 and shall in no event exceed the margin
by which the most-favored-nation rate exceeded the preferential
rate on 10 Apri1 1947. E/PC/T/W/183
page 2
ANNEXURE A
Preferential arrangements referred to in sub-paragraph
2 (a) of Article 14
Preferences in force exclusively between the following
territories:
United Kingdom of Great Britain and Northern Ireland
Dependent territories of the United Kingdom and
Northern Ireland
Canada
Commonwealth of Australia
Dependent territories of the Commonwealth of' Australia
New Zealand
Dependent territories of the Commonwealth of New Zealand
Union of South Africa including South West Africa
Ireland
India
Newlfoundland
Southern Rhodesia
Burma
Ceylon
Certain of the territories listed above have two or more
preferential rates in force for certain products. It is con-
templated that any such territory may, by agreement with the
other Members of the Organization which are principal suppliers
of such products, substitute for such preferential rates a
single preferential rate which shall not on the whole be
less favorable to suppliers at the most-favored-nation rate
than the preferences in force prior to such substitution. |
GATT Library | wt568tk9980 | Second Session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Commission A. Sub-Committeo on Articles 14, 15, 15a 24 | United Nations Economic and Social Council, June 23, 1947 | United Nations. Economic and Social Council | 23/06/1947 | official documents | E/PC/T/105 and E/PC/T/92-105 | https://exhibits.stanford.edu/gatt/catalog/wt568tk9980 | wt568tk9980_92290125.xml | GATT_152 | 85 | 707 | ECONOMIC CONSEIL RESTRICTED.
AND ECONOMIQUE E/PC/T/109
SOCIAL COUNCIL ET SOCIAL ORIGINAL: ENGLISH
SECOND SESSION OF THE PREPARATORY COMMITTE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT.
COMMISSION A
Sub-Committeo on Articles 14, 15, 15a & 24.
ARTICLE 14
The Delegations of Belgium-Luxemburg
and of the Netherlands informed the Executive
Secretary that their communications to the
Secretary General of the United Nations, of 19 March,
1947, (of. E/PC/T/63.Rev.1.) referred to products
of:
Balgian Congo
Ruanda Urundi
Notherlands East Indies
Surinam
Curaçao
NATIONS UNIES
UNITED NATIONS |
GATT Library | jm333jw5880 | Second Session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Commission A. Sub-Committeo on Articles 14, 15, 15a 24 | United Nations Economic and Social Council, June 23, 1947 | United Nations. Economic and Social Council | 23/06/1947 | official documents | E/PC/T/105 and E/PC/T/92-105 | https://exhibits.stanford.edu/gatt/catalog/jm333jw5880 | jm333jw5880_92290125.xml | GATT_152 | 0 | 0 | |
GATT Library | ct708xd3833 | Second Session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Commission A Summary Record Fifth Meeting held on Friday, May 30, 1947, at 11.25 a.m. at the Palais des Nations ,Geneva | United Nations Economic and Social Council, May 30, 1947 | United Nations. Economic and Social Council | 30/05/1947 | official documents | E/PC/T/A/SR/5 and E/PC/T/A/SR/1-10/CORR.1 | https://exhibits.stanford.edu/gatt/catalog/ct708xd3833 | ct708xd3833_90250007.xml | GATT_152 | 1,253 | 7,992 | UNITED NATIONS
ECONOMIC CONSEIL E/PC/T/A/SR/5
AND ECONOMIQUE 30 May 1947
SOCIAL COUNCIL ET SOCIAL
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT.
COMMISSION A
Summary Record
Fifth Meeting held on Friday, May 30,
1947, at 11.25 a.m. at the Palais des
Nations ,Geneva
Chairman: M. Suetens (Belgium)
The CHAIRMAN asked the Delegate for South Africa for his
observations on the amendment proposed by his Delegation to
Article 12 (E/PC/T/W 102), the discussion of which had been
postponed from May 28.
Dr. HOLLOWAY (South Africa) stated that his Delegation had
submitted this amendment to Article 12 in order to raise the
question of principle involved as early as possible in the
consideration of the Draft Charter, even though it might have
been more appropriately raised in connection with Article 35.
In the view of the Delegation of South Africa, the text of the
Charter as drafted at present would give to the International
Trade Organisation supra-national powers. If it were the
intention to create an organisation with supra-national powers,
those wishing to join it must clearly examine the substance
of the Charter much more closely.
Powers could be entrusted by the principals concerned
to a subordinate agency by devolution but as soon as -
NATIONS UNIES
RESTRICTED E/PC/T/A/SR/5
page 2
the principals transferred sovereignty to the subordinate
agency, the latter acquired powers of initiation of which
the principal body was thereby divested. The powers of a
subordinate body acquired by devolution were always exactly
circumscribed. The Charter as drafted at present went a
great deal beyond that.
He believed there was general agreement that the
Organisation should have sanctional powers in certain cases as
laid down in Article 35, that is, the power to relieve other
Members of their obligations to a defaulting Member. There
could be no objection to an agency being entrusted with the
task of exercising these sanctional powers in the case of fixed
and contractual obligations.
Broadly speaking, the obligations involved in Chapter V,
and, to a much more limited extent, in Chapters VI and VII were
fixed and contractual obligations. On the other hand, he
regarded Chapters III and IV as essentially a "confession of
faith", laid down in general terms. If sanctions were to be
applied in the case of Chapters III and IV in accordance with
the present Draft Charter, the Organisation would indeed
acquire sovereign powers from the principals.
But there was another possible approach. He wished to
suggest that it would be a big step forward from international
relations before the war to provide purely for international
consultation with respect to the general matters covered by
Chapters III and IV.
Article 35 (2) would give to the Organisation the widest
powers to apply sanctions. He did not believe such wording as
this could be put into the Charter unless the principle of
sovereignty were accepted as the basis of the Charter. E/PC/T/A/SR/5
page 3
The South African Delegation considered that the Charter
should be drafted on the principle of devolution, not on the
principle of surrender of sovereignty by the contracting State.
This meant that sanctions, whenever provided for in the Charter,
should be limited in their application to specific and contrac-
tual relations. Doubtful matters should be subject to con-
sultation and not to sanctions
Dr. COOMBS (Australia) Agreed that the issues raised by
the Delegate of South Africa were fundamental and therefore
worthy of most careful consideration. He did not agree that
there was any distinction between the types of obligations
embodied in the Charter. All obligations under the Charter
were specific and contractual, so far as his Delegation was
concerned.
In his opinion, the obligations included in Chapters III,
IV, VI and VII of the Draft Charter represented a substantial
advance towards realism made in the work, of the Preparatory
Committee. There was little evidence that past conferences
designed to reduce trade barriers had made any significant
contribution to the problem. This was because the reduction
of trade barriers and the limitation on national freedom in
commercial policy was practicable and desirable only in
certain circumstances. The theory on which the belief that.
a reduction of trade barriers would increase world trade
was based on certain assumptions:
(a) that the resources cf the world human and physical, were
in any case fullly employed;
(b) that balances of payments between countries were in balance
and that any departure from such balance would automatically
correct itself; E/PC/T/A/SR/5
page 4
(c) that the world economy had been subjected continuously
to the stimulus of economic development, both intensive
and extensive.
(This last assumption was less consistently stated) . In
the absence of the conditions implied by these assumptions, it
could not be said with certainty that the reduction of trade
barriers would lead to a better use of the world's resources
or even to an expansion of trade. This conference had sought
in Chapters III, IV, VI And VII to create conditions in which
these assumptions would be realised. This was extremely
important to those countries being asked to undertake obliga-
tions in respect of their commercial policy.
Unless there were some reasonable assurance that the
undertakings given in Chapter V would be implemented in the
conditions specified above, it would not be possible for the
Australian Delegation to carry out those undertakings. They
regarded the commitments in Chapters III, IV, VI and VII on
the one hand and those in Chapter V on the other as inter-
dependent. His Delegation was prepared to accept the com-
mitments in Chapter V provided world conditions were such
that they could carry them out.
For these reasons, he regarded the procedure provided
in Article 35 for complaint and release from obligations as
even more important in the case of Chapters III, IV, VI and
VII than in the case of Chapter V. Only in this way would
it be possible for a country to establish that conditions
beyond its power to control were making it impossible for
that country to carry out its undertakings. His Delegation
would resist bitterly any proposal to modify the right of a
country to seek a modification of the undertakings it had E/PC/T/A/SR/5
page 5
given if, by the actions of other countries, conditions
were created in which it could no longer carry out its
obligations.
He did not believe the question of national sovereignty
entered into this. The Charter provided for consultation and
withdrawal, not for sanctions. Therefore there was no inter-
ference with national sovereignty. But it did give a country
the right of appeal to the international community. If
conditions were to develop in which the obligations under
Chapters III, IV, VI and VII could not be kept, the obliga-
tions under Chapter V would be broken in any case. His Dele-
gation regarded the undertakings in Chapters III, IV, VI
and VII as fundamental in order to create conditions in
which the reduction of trade barriers and the development
of international co-operation in the field of trade would become
possible. It was fundamental to the success of the Inter-
national Trade Organisation and to the acceptability of the
Charter to the Governments concerned that the inter-dependence
of all obligations under the Charter should be made clear
with no distinction drawn in principle between any Chapters
from the point of view of obligations or rights of adversely
affected countries.
The CHAIRMAN announced that Commission A would meet again
on Monday, June 2, at 2.30 p.m. to continue its discussion of
this important question. |
GATT Library | nq952xp3857 | Second Session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Commission A. Summary Record First Meeting held on Tuesday, 27 May 1947 at 10.30 a.m. at the Palais des Nations, Geneva | United Nations Economic and Social Council, May 27, 1947 | United Nations. Economic and Social Council | 27/05/1947 | official documents | E/PC/T/A/SR/1 and E/PC/T/A/SR/1-10/CORR.1 | https://exhibits.stanford.edu/gatt/catalog/nq952xp3857 | nq952xp3857_90250002.xml | GATT_152 | 1,084 | 7,374 | UNITED NATIONS NATIONS UNIES RESTRICTED
E/PC/T/A/SR/1
ECONOMIC CONSEIL 27 May, 1947
AND ECONOMIQUE
SOCIAL COUNCIL ET SOCIAL
SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT.
COMMISSION A
SUMMARY RECORD
First Meeting held on Tuesday, 27 May 1947 at 10.30 a.m. at
the Palais des Nations, Geneva.
Chairman: M. Max Suetens (Belgium)
After referring to the annotated agenda prepared by the
Secretariat for the discussion of Chapter IV on Economic
Development (E/PC/T/W/125.Rev.1), the CHAIRMAN declared the
meeting open for consideration of this Chapter, which would be
dealt with in the same way as Chapter III.
Mr. GUTIERREZ (Cuba), stressed the importance of Chapter IV
for countries not fully developed and indicated his general
agreement with the amendments to this Chapter proposed by the U.S.
Delegation, although reserving his position for the moment on the
first U.S. proposal.
Mr. AUGENTHALER (Czechoslovakia) asked for a clarification
of the meaning of the amendments proposed by the U.S. Delegation.
If they implied direct participation in management by foreign
investors, this might be regarded as contrary to the spirit of the
Charter.
Mr. WILCOX (United States) explained that the U.S.
suggestions for amending Artiele 9, and Chapters I and VIII derived
from their proposed amendment to Article 12. Their proposals were
designed to give explicit recognition in the Charter to foreign
investment as a problem related to economic development - one of
the recognised purposes of the proposed Organization. Although
capital required for reconstructions and industrial development E/PC/T/A/SR/1
page 2
could be supplied through international organizations, by Government
loans, or by private lending, it was the U.S. view that something
could and should be done to encourage a renewal of the flow of
private capital which had not been renewed since the war, and did
not appear likely to be renewed in the foreseeable future.
In view of the Economic and Social Council's reply to the
Preparatory Committe's Inquiry regarding the I.T.O's. jurisdiction
in the field of economic development, Mr. Wilcox suggested that a
fourth commission should be established and charged with the
function assigned to the Organization in Article 61 (c), provided
the scope of such a commission was sufficiently broad to include
both economic development and investment.
Mr. Wilcox suggested further that the questions of national
treatment, most-favoured-nation treatment and compensation - which
he believed were the minimum rules for private investment which
should be established under Article 12 - might be referred to such
a development and investment commission, which in turn should make
recommendations to member Governments.
In reply to Mr. Augenthaler' s question, he did not believe
there was anything in the proposed U.S. amendments which would
require any country to accept a foreign investment requiring
foreign participation in the management concerned. The terms of
any loan or foreign investment should be worked out between the
countries involved.
Mr. GOTZEN (Netherlands) supported in general the United
States proposal to include in this Chapter provisions regarding
international investment, but stated that his Delegation might
wish to suggest certain additions or alterations on minor
Points.
Mr. MARTINS (Brazil) in supporting generally the E/PC/T/A/SR/1
page 3
United States proposals, pointed out that the Brazilian
Delegation had, at the First Session, stressed that the
problem of economic development was inseparable from that
of the means to achieve such development.
Mr. SITZCOVICH (Chile) accepted in principle the
United States proposals, reserving the right to suggest
certain alterations.
Dr, LOKANATHAN (India) moved a short adjournment of
the Commission to give Delegations more time in which to
consider proposed amendments, particularly those which
introduced entirely new features into this Chapter.
Mr. JUSSIAN (Belgium) added his support to that
previously expressed for the proposed United States
amendments.
Mr. MC CARTHY (Australia) stated that the Australian
Delegation supported generally the United States proposals
and accepted Mr. Wilcox' s exposition of the United States
Delegation ' s reasons for submitting their amendments. He
proposed, however, that all proposed additions regarding
investment be confined to Article 12.
Mr. CHWANG (China) indicated his Delegation ' s
acceptance of the United States proposals with a minor
amendment.
M. BARADUC (France) associated himself with the
other delegates who had stressed the importance of the
proposed United States amendments to this Chapter,
which he fully supported in principle while making
certain minor reservations. While supporting the first
proposed United States amendment to Article 9, he E/PC/T/A/SR/1
page 4
proposed the substitution of an alternative French text. He
also supported the Australian Delegate ' s suggestion that all the
proposed United States amendments regarding investment could more
suitably be included in Article 12, and proposed that the Sub-
Committee might draft an article embodying all the United States
proposals.
Mr. AUGENTHALER (Czechoslovakia) expressed the view that
capital investment could not be treated in the same way as goods.
While there was probably a need for some special rules regarding
investment, they should differ from those regarding the exchange
of goods.
Dr. LOKANATHAN (India) appealed to the United States Deleg-
ation not to press its series of amendments at this stage, since
he believed they would completely alter the character of the
Chapter and make its acceptance more difficult. He would not be
opposed, however, to considering terms for international invest-
ment in another part of the Charter - for example, in Article 61(c).
While it might be desirable to lay down in this Chapter a general
obligation regarding investment, it was not desirable to go into
detail. He suggested alternatively that the proposed development
commission, if established, should investigate this problem.
Mr. WILCOX (United States) said that in view of the large
measure of sympathetic interest in the proposed United States
amendments to Chapter IV, which had been indicated, he believed
it would be inappropriate to accede to the Indian Delegate ' s
request. Regarding the Australian Delegate's suggestion that the
problem of international investment should be treated entirely in
Article 12, he would be willing to leave this point to the Sub-
Committee. E/PC/T/A/SR/1
page 5
The CHAIRMAN stated that in order to meet the wishes
of two Delegations, he would postpone further consideration
of the proposed United States amendments regarding invest-
ment until the afternoon session on Wednesday, May 28.
He could not postpone their consideration longer in view
of the necessity of maintaining the time-table for Charter
discussions. The Commission would continue its discussion
of Article 9, with the exception of the United States
amendment, and proceed to Article 10 and 11, at 3:00 p.m.
The meeting rose at 1:00 p.m. |
GATT Library | qg039mj7816 | Second Session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Commission A. Summary Record of 30th Meeting held on Wednesday, 16 July, 1947 at 3.00 p.m. in the Palais des Nations, Geneva | United Nations Economic and Social Council, July 16, 1947 | United Nations. Economic and Social Council | 16/07/1947 | official documents | E/PC/T/A/SR/30 and E/PC/T/A/SR/21/CORR.1-40(1)/CORR.1 | https://exhibits.stanford.edu/gatt/catalog/qg039mj7816 | qg039mj7816_90250046.xml | GATT_152 | 2,160 | 13,934 | UNITED NATIONS
NATIONS UNIES
41J1 4 . i- j
R:STRICTi'
ECONOMIC CONSEIE C 0 1l/P/T/A/SR/3
AND ECONOMIQUE 16 July 1947
SOCIAL COUNCIL ET SOCOAL E (RIGINAL: ;NGLISH
SECND SESSION OF THE PMEPAEETORY CHE I1T.. OF TU
UNITED NATIbNS CORFDERENCE OEM LThAE AND APOYM2NT
CO MI SION A
Summary Record of 30th Meeting
held on W;dnesday, 16 July, 1947 at 3.00 p.m.
in the Palais des Nations, Geneva.
CIAIRWTL: Mr. Eric Colban
The CHAIRAN commenced by reminding the Commission that the
follvrizg points relating to the technical articles had been
rzfirrad at a previous meeting to the Legal Drafting Committee or
to some other appropriate committee:
(a) Certain points relating to the drafting of Articles
16, 19, 20 and 22 which had been referred to the Legal
Drafting Committee.
(b) The question of the appropriate location of Article
37, which hed been referred to the Sub-committee on
Articles 34, 35 and 38.
(c) The transfer of sub-paragrapes (c),(d),(a) end (k) of
Article 37 to some place nearer the end of the Charter,
which would be considered by the Preparatory Committee in
connection with the drafting of the last chapter of the
Charter.
The Commission then proceeded to consider the various
points relating to Articles 21 and 37 which had been scheduled
for discussion. E/PC/T/A/SR/30
Page 2
1. The New Zealand Proposal for an addition of a Sub-
paragraph (b) to Paragraph 3 of Article 21
Mr. JOHNSON (New Zealand), et the invitation of the
CHAIRMAN, introduced the following text which he had
prepared in consultation with the United States delegation
and certain other interested delegations:
"(b) Tre -provisions of sub-paragraph (a) 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 review of
administrative action even though such procedures
are not fully or formally independent of the
agencies entrusted with administrative enforcement.
Any Member employing such procedures shall, upon
request, furnish the Organization with full
information thereon in order that the Organization
may determine whether such procedures conform to
the requirements of this sub-paragraph."
Mr. JOHNSON pointed out that under this proposal the
arrangements in question were brought under the purview of
the Organiztion. The text of the additional sub-paragraph
proposed by the New Zealand delegation was adopted.
2. Suggestion by the United Kingdom Delegation for the
addition of a new sub-paragraph in Article 37
The United Kingdom delegation proposed that the new
sub-paragraph should read as follows:
"(1) undertaken in pursuance of obligations under
inter-governmental commodity agreements concluded
in accordance with the provisions of Chapter VII."
The CHAIRMAN observed that this proposal in its present
form, together with the consequential deletion of sub-
paragraph 2 (d) from Article 25, had been reported
favorably by the Sub-Committee on Charter VII in Document
E/PC/T/W/228. Mr. CATUDAL (United States) indicated that
his delegation was prepared to accept the proposal. The
proposal was adopted. E/PC/T/A/SR/30
page 3
3. The Proposal of the Brazilian Delegation for the Deletion
of the words "are taken pursuant to international
agreements on ..." from sub-paragraph (j) of Article 37.
The CHAIRMAN pointed out that the Sub-committee on
Chapter VII had also recommended acceptance of this proposal
(E/PC/T/W/228). Mr. RODRIGUES (Brazil) observed further
that Commission B had also approved the deletion of those
words (E/PC/T/W/239). The proposal for the deletion of
these words was adopted.
4. The Deletion or Transfer of the Reference to "fissionable
materials" in sub-paragraph (c) of Article 37.
The CHAIRMAN drew attention to the related observation by
the Sub-committee on Chapter VII concerning sub-paragraph (d) in
paragraph 1 of Article 62. The CHAIRMAN observed that pre-
sumably sub-paragraph (d) would be deleted and that in a
similar manner sub-paragraph (c) of Article 37 could also be
discussed more appropriately in connection with a later part
of the Charter. He suggested that the Secretariat draw the
attention of the Drafting Committee to the fact that there is no
objection on the part of Commission A to the deletion of sub-
paragraph (d) in view of the related changes contemplated
elsewhere in the Charter.
Dr. COOMBS (Australia) pointed out that the inclusion of
the present provision in Article 37(c) would have an unfortunate
effect in the event that atomic energy became an important or
major source of industrial energy. He suggested accordingly
that if the retention of such a provision were contemplated it
should be placed in square brackets for the time being and that
the Preparatory Committee should advise the appropriate inter-
national organization that there are trade problems associated
with fissionable materials and that, accordingly, the Preparatory
Committee would welcome advice from the appropriate international E/PC/T/A/SR/30
page 4
body regarding the way in which this item should be treated,
having in mind the security aspect. Mr. CATUDAL (United States)
remarked that in his view this matter did not require further
discussion at the present time but could be considered more
appropriately when the question of its inclusion at a later
point in the Charter came up for discussion. The CHAIRMAN
agreed that this question could be discussed at a later stage
in connection with the decision on the inclusion of such a
provision in one of the later articles of the Charter, but that
the Secretariat in submitting the question of this sub-paragraph
to the Preparatory Committee should draw attention to the
observations made by the Representative of Australia.
Mr. HEYES (Australia) agreed with the Chairman's proposal
which was then accepted by the Commission.
5. The Proposal to add an Interpretive Comment Concerning Sub-
paragraph (b) Relating to the Protection of Human, Animal
or Plant Life or Health.
The CHAIRMAN introduced the proposed comment which had
appeared as paragraph 1 in Document E/PC/T/W/245.
Mr. CATUDAL (United States) observed that the draft comment
indicated the difficulties in formulating the provision of this
paragraph in specific terms. He suggested that rather than
attempt to agree on an interpretive note the meaning of the sub-
paragraph might be clearer if the text were abbreviated and all
interpretation omitted. He suggested that the sub-paragraph
should read morely "for the purpose of protecting human, animal
or plant life". He doubted that the rest of the phrase
contributed anything to the meaning of the sub-paragraph,
particularly in view of the fact that its sense appeared to be
adequately covered already in the preamble to the article and
in Article 35. M. ROUX (France) suggested that the substance E/PC/T/A/SR/30
page 5
of the explanatory note might be incorporated in a redraft
of the sub-paragraph, omitting, however, the obligation to
furnish proof. After further discussion, BARON DE GAFFIER
(Belgium), Dr. KORTEWEG (Netherlands) and M. ROUX (France)
agreed that the text of the sub-paragraph might be modified
as suggested by the Representative of the United States, but
questioned the advisability of omitting the explanatory note.
Mr. CHERRY (South Africa) expressed his agreement with the
proposal by the Representative of the United States to
abbreviate the text and to omit any explanatory note. The
CHAIRMAN inquired whether in the light of the discussion any
other DELEGATIONS cared to speak in support of the proposal by
the Representative of Belgium to insert some explanatory comment
on the meaning of the sub-paragraph. In the absence of any
further statements in support of the Belgian proposal, the
CHAIRMAN declared that he interpreted the sense of the Commission
as agreeable to the proposal of the United States Representative
that the sub-paragraph should read "necessary to protect human,
animal or plant life or health" and that the explanatory note
should be omitted.
In answer to a question from M. ROUX (France) the CHAIRMAN
confirmed that the word "necessary" had been retained in the text
and that the French equivalent of that word should appear in the
French version of the text.
6. Proposal by the Delegation of Australia relating to Sub-
paragraph (j).
Dr. COOMBS (Australia) indicated that his Delegation was in
general sympathy with the object of the sub-paragraph but had
some doubts about the proviso that restrictions imposed on
exhaustible material resources should be associated with
restrictions on domestic production or consumption, as there E/PC/T/A/SR/30
page 6
might be cases in which the rate of domestic production or
consumption was restricted by technical factors. In such
cases he thought it should not be necessary to impose further
limitations on the exploitation of those resources. Dr. COOMBS
remarked that he had no specific proposal to present but that
he wished to raise the point in order to ensure that some time
would be given for further thought on this question with a view
to the possible submission, either to a sub-committee or to the
Commission, of any proposal that might be developed to cover
the type of case which he had in mind.
The CHAIRMAN remarked that before the text is to be finally
considered by the Preparatory Committee all Delegations would
have an opportunity to consider the present draft and formulate
any amendments or reservations which might still appear to be
necessary. He remarked that since the Commission expected to
meet shortly for a discussion of Article 18 the Australian
Delegation might at that meeting, or subsequently, wish to
present any necessary amendment to sub-paragraph (j) for
consideration by the Commission.
7. Proposal by the Sub-committee on Article 15, with the
Concurrence of the Sub-committee on Article 25, to Transfer
Sub-paragraph 2(a) of Article 25 to Article 37.
The CHAIRMAN drew attention to the note on this matter
appearing as paragraph 2 in Document E/PC/T/W/245. He observed
that in connection with the discussion of the proposed transfer
it would be necessary to consider also whether the new paragraph
should remain in Chapter V or be removed to a later part of the
Charter. He remarked that the Commission would also wish to
consider in what form the three sub-paragraphs should appear,
if their transfer to Article 37 is approved. The three sub-
paragraphs might be added as a separate paragraph, with a separate
preamble, in Article 37 or they might be added to the series of
sub-paragraphs already in Article 37. E/PC/T/A/SR/30
page 7.
Mr. CHERRY (South Africa) noted that the section proposed
for transference to Article 37 might reasonably appear as a
separate paragraph in view of the fact that the three exceptions
referred to therein are of a temporary nature. If, however, a
separate paragraph were to be drafted to cover these temporary
exceptions he felt that the proviso at the beginning of Article
37, starting with the words "subject to the requirement that
such measures" down to the words "international trade" should,
in some manner, apply with equal force to the exceptions in the
new sub-paragraph. The CHAIRMAN sugeested that this purpose
might be accomplished if the proposed new paragraph 2 were to
begin with the words "subject to the requirement mentioned in
paragraph 1 ... " Mr. CHERRY observed that the point might be
covered in the manner proposed by the CHAIRMAN or the preamble
to the entire article might be confined to the words "subject to
the requirement" down to "international trade" and paragraphs 1
and 2 might each begin with the words "nothing in Chapter V ...".
Concerning the principle of including these exceptions in
some form in Article 37, Mr. IMMS (United Kingdom) suggested that
the proposal would have to be considered further and the dis-
cussion on the point of principle might be resumed at a later
date. Mr. MELANDER (Norway), while expressing his agreement in
principle to the proposed transfer, agreed with the United
Kingdom Representative that certain aspects of the proposed
transfer required further consideration. In particular, he was
in some doubt as to whether the general introduction in Article
37 should apply to the new paragraph which related to temporary
exceptions quite different in character from the exceptions at
present in the article. Mr. CATUDAL (United States) and BARON
DE GAFFIER (Belgium) expressed their agreement with the principle E/PC/T/A/SR/30
page 8.
of transferring the indicated provisions from Article 25 to
Article 37.
In the light of the discussion the CHAIRMAN proposed that
preparation for the next discussion of this subject in the
Commission should proceed on the assumption that the Commission
will agree finally to accept the suggestion made by the two sub-
committees to incorporate these points in an appropriate manner
in Article 37.
8. Adjournment of Meeting.
The CHAIRMAN mentioned that as the Australian Delegation
was now in a position to discuss Article 18 a meeting of the
Commission would be arranged shortly to consider the remaining
points relating to that article. Mr. HEYES (Australia) indicated
that his Delegation would like to have the discussion of Article
18 resumed early next week.
The CHAIRMAN expressed the hope that at the next meeting
it would be possible to complete the remaining points relating
to the technical articles and in particular to complete considera-
tion of Article 18.
The meeting rose at 6.10 p.m. |
GATT Library | ft388nh8777 | Second Session of the Preparatory Committee of the United Nations Conference on Trade and Employment : Commission A Summary Record of the 16th Meeting held on Monday, 23 June 1947 at 2.30 p.m. in the Palais des Nations, Geneva | United Nations Economic and Social Council, June 23, 1947 | United Nations. Economic and Social Council | 23/06/1947 | official documents | E/PC/T/A/SR/16 and E/PC/T/A/SR/10/CORR.2-21 | https://exhibits.stanford.edu/gatt/catalog/ft388nh8777 | ft388nh8777_90250029.xml | GATT_152 | 1,798 | 11,734 | UNITED NATIONS NATIONS UNIES RESTRICTED
E/PC/T/A/ SP/16
ECONOMIC CONSEIL 23 June 1947
AND ECONOMIQUE ORIGINAL: ENGLISH
SOCIAL COUNCIL ET SOCIAL
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
SECOND SESSION OF THE FRPARATORY COMMITTEE OF THE
UNITED NATIONS CONFERENCE ON TRADE AND EATLOYMENT.
COMMISSION A
Summary Record of the 16th Meeting held on Monday,
23 June 1947 at 2.30 p.m. in the Palais des Nations,
Geneva
CHAIRMAN: H.E. A. de F. Braga (Brazil)
The CHAIRMAN called the meeting to order and invited
Dr. LOKANATHs (India), Chairman of the Sub-committee on
Chapter I!I to present the report of that Sub-committee.
Dr. LOKANATFAN summarized the report relating to the
redrafted text which the Sub-committee had prepared for
Chapter III. He remarked that in addition to the points
covered in the report of the Sub-committee mention might be
made of twordeletion by the Sub-committee of the wwrk "national"
before "productivity" in Article 5. He explained that the
Sub-committee had considered it undesirable to confine
attention solely to national productivity. The Sub-committee
considered that the use of the single word "productivity"
would make it clear that appropriate account should be taken
of whatever productivity might be relevant - whether it be
national, regional, or that of a ru-ibcular industry. On
another point which had not been covered in the report of the
Sub-committee he explained that the title of the chapter had
been shortened from "Eployment, Effective Demand and Economic
Activity" to simply "Employment and Economic Activity", since-
with the addition of production in the text of the chapter the
title would have become too long if an attempt had been made to E/PC/T/A/SR/16
page 2.
list all the aspects of economic activity covered by the
present text of the chapter. He emphasized that, as indicated
in the report of the Sub-committee, although an attempt had
been made in redrafting the text to take more complete account
of the other aspects of economic activity, it had not been the
intention of the Sub-committee to divert the main emphasis of
the chapter from employment.
Mr. MELANDER (Norway) expressed the approval of his
Delegation for the new text but stressed that none of the
amendments should be interpreted as diverting attention from
the main objective of the chapter, which is to make provision
for full employment.
Mr. CHEW (China) indicated his preference for the more
extended title proposed by the New York Drafting Committee but
after some discussion indicated that he would not press for the
change if the Commission considered that the term "economic
activity" clearly included effectivee demand".
The meeting then proceeded to discuss the proposed new
text, article by article.
Article 3. Importance of Employment, Production and Demand in
Relation to the purposes of this Charter.
M. BARADUC (France) suggested that, in the French
language version, the style would be improved if the last four
lines were changed to read:
"est également une condition nécessaire pour atteindre
les objectifs de la présente charte y compris le
développement des changes internationaux et, par
consequent, pour assurer le bien-être de tous les
autres pays."
The CHAIRMAN indicated that the necessary alteration
would be made in the French text.
Article 4. Maintenance of Domestic Employment.
Mr. WEBB (New Zealand) drew attention to the statement in
the Sub-committee's report that "the representative of E/PC/T/A/SR/16
page 3.
New Zealand.... would prefer not to discuss the amendment which
it had proposed to Article 4 until Article 33 and related parts
of the Charter had been discussed... In the meantime the
New Zealand Delegation would reserve its position in respect to
Article 4".
The CHAIRMAN indicated that the reservation made by the
New Zealand delegation would be recorded.
M. BARADUC proposed that at the end of paragraph 2 of
Article 4 the words "other Members" should be replaced by the
words "other countries" in order to be consistent with the
language at the end of paragraph 1 in Article 3 where a reference
is made to "the well-being of all other countries" and, also, in
order to be consistent with the provisions drafted in London
concerning balance of payments questions. Dr. LOKANATHAN
explained that the Sub-committee had expressed no strong
preference as between these two alternatives, although he
personally considered the word "Members" better than "countries"
in this context. M.FORTHOMME (Belgium) expressed the view that
the use of the word "countries" at this point would appear to
complicate the task of member countries and was in any event
unnecessary since in practice no member country would deliberately
try to create balance of payments difficulties for non-Members.
Dr. COOMBS (Australia), speaking in his capacity as Chairman of
the Consultative Committee (Non-Governmental Organizations);
reported that the Representative of the World Federation of
Trade Unions had suggested to the Consultative Committee that
the substitution of the word "countries" would be desirable in
order to avoid the impression that the use of measures which
were capable of producing balance of payments difficulties for
non-Members would be quite consistent with a Member's obligations
under this article. Speaking for the Australian Delegation, E/PC/T/A/SR/16
page 4.
Dr. COOMBS expressed a preference for the words "other countries"
rather than "other Members" since the intention of this article
was not so much to establish an obligation between Members as
it wes to require Members to accept an obligation in relation to
their own domestic policies and to the effects of those policies
on other countries whether they be Members or non-Members.
Mr. KRAUS (Czechoslovakia) supported the proposed
substitution of the words "other countries" on the ground that
the use of the term "other Members" in this article might be
interpreted as encouraging the formation of economic blocs.
Dr. KORTEWEG (Netherlands) also supported the proposal, adding
that in this particular context, since the reference was
intended to be to conditions generally in a country, the text
should not refer to "Members" or "Governments" but to "countries."
Mr. MEADE (United Kingdom) expressed the preference of his
Delegation for the proposed substitution but emphasized that
such an alteration in Article 4 should not be accompanied by
a similar alteration in article 6 because article 6 relates to
specific obligations of Members towards other Members and does
not represent, as does Article 4, a general undertaking to
refrain from types of domestic measures which will cause trouble
to others. Y. BARADUC (France) agreed that the proposed change
in Article 4 would not require a change in Article 6. Mr.HAKIM
(Lebahon), Mr . CHEN (China) and M. WILCOX (United States) added
their support to the suggestion originally mado by the Repre-
sentative of France. M. FORTHOMME (Belgium) indicated his
willingness to accept the proposed change. Accordingly, the
last sentence of Article 4 was changed to read "Members shall
seek to avoid measures which would have the effect of creating
balance of payments difficulties for other countries". E/PC/T/A/SR/16
page 5.
Article 5. Fair Labour Standards
This article was adopted without discussion.
Article 6. Removal of Maladjustments within the Balance of
Payments.
M. BARADUC pointed out that the word "desirability" in
the second paragraph of the English text appeared in the French
text as "necessite". He questioned whether these words could
be regarded as comparable in meaning and suggested that the
last part of the French text following the word "compte? should
be changed to read '"du fait qu'il est préférable d'employer des
méthodes visant au développement plutôt qu'au resserrement des
échanges internationaux."
Mr. WEBB (New Zealand) placed on record the view of his
Delegation that the wording of this article was unsatisfactory
and expressed the hope that between now and the World Conference
it might be possible to evolve a text which would more correctly
express the implied intention. In particular he doubted that
the text made clear which types of balance of payments
difficulties the article was really intended to deal with. He
questioned the use of the words "major factor" and suggested that
the words "significant factor" might be more appropriate. He
regretted the addition of the words "handicap them in carrying
out the provisions of article 4 without resort to trade
restrictions' which he considered unnecessary and limiting on
the scope of the articles Ha suggested that the words "other
countries" rather then "other Members" might be used in this
article as appropriately as in article 4. The CHAIRMAN
indicated that the remarks by the Representative of New Zealand
would be recorded. Mr. VAN DER POST (South Africa) agreed
with the Representative of New Zealand that an attempt might be
made to improve the wording of the articles E/PC/T/A/ SR/16
page 6.
Mr. MEADE (United Kingdom) pointed out certain improve-
ments in the new text. In the first place, he felt that the
new text avoided more satisfactorily than the provious text the
impression that the single Member which has a "favorable balance
of payments" is alone in causing the whole trouble. Secondly,
he considered that the article had been improved by making clear
that other countries were not expected to attempt in the first
instance to overcome their balance of payments difficulties by
restricting imports. Finally, he welcomed the provision for
remedial action by all Members concerned.
M. BARADUC (France), while agreeing with the Represen-
tative of the United Kingdom concerning the merits of the English
language text, requested that an attempt be made to improve the
French language text. The CHRIRMAN pointed out that the Sub-
committee had indicated in its report that it expected the
French and English language versions to be reviewed at a later
stage in order to ensure that they are strictly comparable in
meaning. M. BARADUC proposed that the French speaking dele-
gations should meet at an early date to study the best possible
French language text.
The CHAIRMAN agreed with the suggestion made by the French
Delegation and indicated that the English language text of
Article 6 would be regarded as approved but that some improvements
might be made in the French language text in the interest of
comparability. The CHAIRMAN intimated that it might be
necessary later to approve formally the French language text if
any changes were found to be required.
Article 7, Exchange of Information and Consultation
Article 8. Safeguards for Members Subject to Exterenal Deflation-
ary pressure.
Mr. CHEN (China) questioned the desirability of changing
the order of Articles 7 and 8. Dr. LOKANATHAN explained that, E/PC/T/A/SR/16
page 7.
as indicated in the report of the Sub-committee, the present
Article 8 was placed after the present article 7 in order to
emphasize the desirability of seeking consultation for the
purpose of resolving economic difficulties wherever possible
without resorting to release from Charter obligations.
Articles 7 and 8 in their present order were approved.
The CHAIRMAN expressed the thanks of the Commission to
all members of the Sub-committee, and particularly to its
Chairman, for the text which they had prepared.
The meeting rose at 5.48 p.m. |
Subsets and Splits