E/PC/T/186 10 September 1947

United Nations Publications Sales Number: 1947. 11. 4. TABLE OF CONTENTS

Page - Part 1. INTRODUCTION ...... 5

Part Il. - I. THE DRAFT CHARTER ...... 7 2. ANNEXES A, B, C, D, E AND F TO THE DRAFT CHARTER. 59 3. APPENDIX...... 65

Part III. - ENCLOSURES:

Enclosure I. - Extracts from the Interim Report of the Second Session of the Preparatory Committee to the Fifth Session of the Economic and Social Council .69 Enclosure 2. - Resolutions adopted at the Fifth Session of the Economic and Social Council relating to the Interim Report of the Second Session of the Preparatory Committee. 7I

Enclosure 3. - List of Sub-Committees at the Second Session ...... 73 Enclosure 4. - Comparative Lists of Provisions in the Drafts of the Charter prepared by the Second Session and by the New York Drafting Committee 74 -5 -

REPORT' OF THE SECOND SESSION OF THE PREPARATORY COMMITTEE OF THE UNITED NATIONS CONFERENCE ON TRADE AND EMPLOYMENT (adopted by the Preparatory Committee 22August I947)

Part I. - INTRODUCTION I. ESTABLISHMENT OF THE PREPARATORY Nations which might be invited to the Con- COMMITTEE ference. The relevant sections of this interim report are reproduced in Enclosure I to the The Economic and Social Council at its present Report. The resolutions adopted by First Session resolved on 18 February I946 to the Economic and Social Council relating to call an International Conference on Trade and the recommendations in the interim report are Employment for the purpose of promoting reproduced in Enclosure 2. In accordance the expansion of production, exchange and with those resolutions, the United Nations consumption of goods. At the same time the Conference on Trade and Employment is to be Council constituted a Preparatory Committee converted on 2I November I947 at Havana, to elaborate for the Conference an annotated Cuba. draft agenda, including a draft convention, The Second Session of the Preparatory Com- taking into account suggestions which might mittee continued the preparation of the draft be submitted by the Council itself or by any Charter or convention. The draft adopted by member of the United Nations. the Preparatory Committee at the Second The Council also charged the Preparatory Session as a basis for discussion at the World Committee with presenting recommendations Conference appears as Part II of the present regarding the date and place of the Conference Report. Although the Preparatory Committee on Trade and Employment and which States, has reached a large measure of agreement on if any, non-members of the United Nations, the text to be recommended to the full Con- should be invited to the Conference. ference, it will be noted that the text is accompanied by a number of notes indicating the 2. STAGES IN THE WORK OF THE PREPARATORY reservations which have been made and the COMMITTEE interpretations of the text which are thought necessary in order to make the exact intention The First Session of the Preparatory Com- clear. Some of these latter notes enabled reser- mittee was held in London from 15 October to vations to be withdrawn. 26 November I946. In the course of this In view of the fact that changes have been Session, a draft Charter for an International made in the text of the draft Charter as it has Trade Organization was prepared and embodied progressed through the Preparatory Committee, in a report which was distributed as document and particularly in view of the fact that the E/PC/T/33 and published. order of the articles has been rearranged, the The First Session appointed a Drafting Com- present report contains as Enclosure 4 tables mittee to meet as soon as possible after the setting forth in parallel columns the identifying First Session for the purpose of editing the numbers of comparable provisions in the draft Charter produced in London. The Draft- versions of the draft Charter issued by the ing Committee met in New York from 20 New York Drafting Committee and by the January to 25 February I947 and recorded the Second Session of the Preparatory Committee results of its work in a report which was in order to facilitate a determination of the distributed as document E/PC/T/34 and later relationship between the present text and the published. earlier version. The Second Session of the Preparatory Com- In its present Report, the Preparatory Com- mittee was convened at the European Office mittee has refrained from enunciating in detail of the United Nations in Geneva on 10 April the principles underlying the draft Charter. I947. During the course of this Session, the It was felt by the Preparatory Committee Preparatory Committee transmitted to the that the observations presented in Part II of Fifth Session of the Economic and Social the Report of the First Session represented a Council an interim report indicating the pro- general statement of the guiding principles posed outlines of the annotated draft agenda which have been followed and developed in the and convention which were being prepared for work of the First Session, the Drafting Com- the full Conference and presenting recommend- mittee and the Second Session. Although the ations concerning the date and place of the Report of the Second Session will constitute Conference and the non-members of the United the agenda and basic "working paper" at the -6 - World Conference, the two earlier reports will associated with all the proceedings and many he regarded as essential parts of the annotation members of the United Nations non-members thereto. It has seemed unnecessary to restate of the Preparatory Committee 5 and some in the two later reports the principles set forth in non-governmental organizations in Category the Report of the First Session or to indicate "A" 6 sent observers who from time to time at length the alterations which were made gave the Committee the benefit of their views. during the Drafting Committee stage or during the Second Session, in order to take account of new considerations and to reconcile conflicting 4. ELECTED OFFICERS OF THE SECOND points of view. SESSION Considering that the objectives underlying the endeavour to set up the I.T.O. would be promoted if concrete action. were taken by the Chairman . H.E. M. SUETENS (Belgium). Members of the Preparatory Committee (which Vice-Chairmen: account for approximately 70% of world trade) First Vice- to enter into reciprocal negotiations directed Chairman. H.E. Erik COLBAN (Norway). to the substantial reduction of tariffs and other Second Vice- barriers to trade and to the elimination of Chairman. Sir Raghavan PILLAI (India). preferences on a mutually advantageous basis, H.E. Dr. Zdenek AUGENTIHALER the governments represented on the Preparatory (Czechoslovakia). Committee adopted a resolution at the First Session regarding the carrying-out of such Mr. Sergio I. CLARK (Cuba). negotiations under its sponsorship in connec- Hon. L. D. WILGRESS (Canada). tion with, and as a part of, the Second Session. The governments represented at the Second Commission A: 7 Session of the Preparatory Committee are, at Chairman . H.E. SUETENS (Belgium). the time of the issuance of this report, in the Vice-Chairmen H.E.M. Erik COLBAN final stages of the negotiations foreseen in the (Norway). above-mentioned resolution. It is expected H.E. Antonio DE VILHENA that the concessions resulting from these FERREIRA BRAGA (Brazil). negotiations, together with such other provisions as may be appropriate, will shortly be Commission 7B: incorporated in a General Agreement on Tariffs Chairman. Hon.L D. WILGRESS and Trade. 1 (Canada). Vice-Chairman M. J. ROYER (France). 3. PARTICIPANTS IN THE WORK OF THE PREPARATORY COMMITTEE 6 Colombia, Denmark, Mexico, Peru, Poland and Syria sent observers to the First Session; Colombia and Mexico All members of the Preparatory Committee 2, to the Drafting Committee, and the following countries with the exception of the Union of Soviet to the Second Session, in addition to those represented Socialist Republics, took part in the work of at the First Session: Afghanistan, Argentina, Ecuador, Egypt, Greece, the First and Second Sessions and of the Draft- Iran, Saudi-Arabia, Siam, Sweden, Turkey, Uruguay, ing Committee. The Union of Soviet Socialist Venezuela, Yugoslavia. Republics indicated that it did not feel able * The organizations were: to participate in the work of the Preparatory American Federation of Labor, International Cham- Committee as it had not found it possible to ber of Commerce, International Co-operative Alli- devote sufficient preliminary study to the ance, World Federation of Trade Unions. The international Federation of Agricultural Producers also important questions which were the subject of submitted its views on certain points to the Second the Committee's discussion. Session of the Preparatory Committee. The Inter- Two specialized agencies 3 and two other national Federation of Christian Trade Unions and inter-governmental organizations were actively the Interparliamentary Union were also invited to be represented. 1 In view of the existence of a Customs Union between 7 In order to facilitate simultaneous discussion, the Syria and Lebanon, a Syrian delegation has taken part Preparatory Committee at the Second Session was in the tariff negotiations and has been regarded as a divided into two commissions, each of which consisted of contracting party in the General Agreement on Tariffs representatives of all Delegations. Commission A, and and Trade. its sub-committees, prepared texts for consideration by 2 The members are: the Preparatory Committee relating to the chapters on Australia, Belgium-Luxemburg Economic Union, Employment and Economic Activity, Economic Develop- Brazil, Canada, Chile, China, Cuba, Czechoslovakia, ment and General Commercial Policy (with the exception France, India, Lebanon, Netherlands, New Zealand, of the Articles relating to Subsidies). Similarly, Com- Norway, Union of South Africa, Union of Soviet mission B prepared draft texts relating to the chapters Socialist Republics, United Kingdom, United States on Purposes, Organization, Restrictive Business Practices of and Inter-governmental Commodity Agreements, as America. well as the Articles on Subsidies. Each Commission 3 The Food and Agriculture Organization and the established sub-committees for the further study of International Labour Organization. individual Articles or groups of Articles (see Enclosure 3). 4 The International Bank for Reconstruction and All drafts were reviewed at the final plenary meetings of Development and the International Monetary Fund. the Preparatory Committee. -7-

Part II.

THE DRAFT CHARTER .

INDEX CHAPTER 1. - PURPOSE, AND OBJECTIVES: Page Article I ...... CHAPTER Il. - EMPLOYMENT AND ECONOMIC ACTIVITY: Article 2. Importance of Employment, Production and Demand in Relation to the Purpose of this Charter . 10 Article 3. Maintenance of Domestic Employment ...... 10 Article 4. Fair Labour Standards...... Io Article 5. Removal of Maladjustments within the Balance of Payments ...... 10 Article 6. Exchange of Information and Consultation ...... 10 Article 7. Safeguards for Members subject to External Deflationary Pressure ...... Il CHAPTER III. - ECONOMIC DEVELOPMENT: Article 8. Importance of Economic Development in Relation to the Purpose of this Charter . . . 12 Article 9. Development of Domestic Resources and Productivity ...... I2 Article 1o. Co-operation for Economic Development...... 1 2 Article 1 I. Means of promoting Economic Development ...... 12 Article 12. International Investment for Economic Development ...... I3 Article 13. Governmental Assistance to Economic Development. 14 Article 14. Transitional Measures. 15 Article 15. Preferential Arrangements for Economic Development...... I6 CHAPTER IV. - COMMERCIAL POLICY: Section A. Tariffs, Preference, and Internal Taxation and Regulation: Article I6. General Most-favoured-nation Treatment ...... 17 Article 17. Reduction of Tariffs and Elimination of Preferences. 17 Article 18. National Treatment on Internal Taxation and Regulation . . . i8 Article I9. Special Provisions relating to Cinematograph Films ...... 19 Section B. Quantitative Restrictions and Exchange Controls:

Article 20. General Elimination of Quantitative Restrictions...... 20

Article 21. Restrictions to safeguard the Balance of Payments...... 2I

Article 22. Non-discriminatory Administration of Quantitative Restrictions ...... 22

Article 23. Exceptions to the Rule of Non-discrimination ...... 24

Article 24. Exchange Arrangements ...... 25 Section C. Subsidies:

Article 25. Subsidies in General ...... 26

Article 26. Additional Provisions on Export Subsidies ...... 27

Article 27. Special Treatment of Primary Commodities ...... 27

. . . Article 28. Undertaking regarding Stimulation of Exports ...... 27 Article 29. Procedure ...... 28 Section D. State Trading: Article 30. Non-discriminatory Treatment 28 Article 31. Expansion of Trade...... 28 Section E. General Commercial Provisions:

Article 32. Freedom of Transit ...... 30 Article 33. Anti-dumping and Countervailing Duties ...... 30 Article 34. Valuation for Customs Purposes ...... 31 Article 35. Formalities connected with Importation and Exportation ...... 32 Article 36. Marks of Origin ...... 33 Article 37. Publication and Administration of Trade Regulations .... 33 Article 38. Information, Statistics and Trade Terminology ...... 34 Article 39. Boycotts ...... 35 Section F. Special Provisions:

Article 40. Emergency Action on Imports of Particular Products ...... 35 Article 4I. Consultation ...... 36 Article 42. Territorial Application of Chapter IV - Frontier Traffic - Customs Unions . 36 Article 43. General Exceptions to Chapter IV ...... 36

CHAPTER V. - RESTRICTIVE BUSINESS PRACTICES: Article 44. General Policy towards Restrictive Business Practices ...... 38 Article 45. Procedure with respect to Investigations and Consultations ...... 38 Article 46. Studies relating to Restrictive Business Practices ...... 39 Article 47. Obligations of Members. 40 Article 48. Supplementary Enforcement Arrangements ...... 40 Article 49. Domestic Measures against Restrictive Business Practices ...... 40 Article 50. Procedure with respect to Services ...... 40 Article 51. Exceptions to the Provisions of this Chapter ...... 4'i - -8

CHAPTER VI. - INTER.-GOVERNMENTAL COMMODITY AGREEMENTS: Page Section A. Introductory Considerations: Article 52. Difficulties relating to Primary Commodities.42 Article 53. Primary and Related Commodities . . . 42 Article 54. Objectives of Inter-governmental Commodity Agreements .42 Section B. Inter-governmental Commodity Agreements in General: Article 55. Commodity Studies . 43 Article 56. Commodity Conferences .43 Article 57. General Principles governing Inter-governmental Commodity Agreements .43 Article 58. Types of Agreements . 43 Section C. Inter-governmental Commodity Control Agreements: Article 59. Circumstances governing the Use of Commodity Control Agreements .44 Article 60. Additional Principles governing Commodity Control Agreements .44 Article 6I. Administration of Commodity Control Agreements. . . . 45 Article 62. Initial Term, Review and Renewal of Commodity Control Agreements ..45 Article 63. Settlement of Disputes . 45 Section D. Miscellaneous Provisions: Article 64. Relations with Inter-governmental Organizations . 46 Article 65. Obligations of Members regarding Existing and Proposed Commodity Agreements 46 Article 66. Territorial Application . 46 Article 67. Exceptions to Provisions relating to Inter-governmental Commodity Agreements 46 CHAPTER VII. - THE INTERNATIONAL TRADE ORGANIZATION: Section A. Structure and Functions: Article 68. Membership. 47 -Article 69. Functions .47 Article 70. Structure .48 Section B. The Conference: Article 71. Composition .48 Article 72. Voting.48 Article 73. Sessions, Procedure and Officers .48 Article 74. Powers and Duties .48 Section C. The Executive Board: Article 75 Composition of the Executive Board .49 Article 76. Voting.50 Article 77. Sessions, Procedure and Officers .50 Article 78. Powers and Duties .51 Section D. The Commissions: Article 79. Establishment and Functions. 51 Article 80. Composition and Procedure. 51 Section E. The Tariff Committee: Article 81. The Tariff Committee .51 Section F. The Director-General and Staff: Article 82. The Director-General 51 Article 83. The Staff. 51 Section G. Other Organizational Provisions: Article 84. Relations with Other Organizations .52 Article 85. International Responsibilities of the Director-General, Staff and Members of Commissions 52 Article 86. International Legal Status of the Organization. . 52 Article 87. Status of the Organization in the Territory of Members .52 Article 88. Contributions. . 52 CHAPTER VIII. - SETTLEMENT OF DIFFERENCES - INTERPRETATION: Article 89. Consultation between Members. . .53 Article 90. Reference to the Organization ..53 Article 91. Reference to the International Court of Justice. . 53 Article 92. Miscellaneous Provisions .54 CHAPTER IX. -- GENERAL PROVISIONS: Article 93. Relations with Non-Members.55 Article 94. General Exceptions. . 56 Article 95. Amendments . 57 Article 96. Review of the Charter .57 Article 97. Withdrawal and Termination. 57 Article 98. Entry into Force and Registration .57 Article 99. Territorial Application. . 57 Article I00. Deposit of Texts 58

Annexes pertaining to Paragraph 2 of Article 16: Annex A...... 59

Annex B ...... 60

Annex C.. . . . 61

Annex D ...... 62

Annex E...... 63 Annex F...... 64 Appendix. - 9 -

CHAPTER I PURPOSE AND OBJECTIVES

Article 1. countries which are still in the early stages of industrial development, and to encourage the RECOGNIZING the determination of the United international flow of capital for productive Nations to promote peaceful and friendly investment. relations among nations, 3. To further the enjoyment by all countries, THE STATES parties to this Charter undertake on equal terms, of access to the markets, proin the fields of trade and employment to co- ducts and productive facilities, which are needed operate with one another and with the United for their economic prosperity and development. Nations 4. To reduce tariffs and other barriers to trade and to eliminate discriminatory treatment For the Purpose of in international commerce. REALIZING the aims set forth in the Charter 5. To enable countries, by increasing the of the United Nations, particularly the attain- opportunities for their trade and economic ment of the higher standards of living, full development on a mutually advantageous basis, employment and conditions of economic and to abstain from measures which would disrupt social progress and development, envisaged in world commerce, reduce productive employ- Article 55 (a) of that Charter. ment or retard economic progress. TO THIS END they pledge themselves, individually and collectively, to promote national and 6. To facilitate through the promotion of international action designed to attain the fol- mutual understanding, consultation and co- lowing objectives: operation the solution of problems relating to international trade in the fields of employment, 1. To assure a large and steadily growing economic development, commercial policy, busi- volume of real income and effective demand, to ness practices and commodity policy. increase the production, consumption and exchange of goods, and thus to contribute to a ACCORDINGLY they hereby establish the balanced and expanding world economy. INTERNATIONAL TRADE ORGANIZA- TION through which they shall co-operate as 2. To foster and assist industrial and general Members to achieve the purpose and the economic development, particularly of those objectives set forth in this Article. - 10 --

CHAPTER Il

EMPLOYMENT AND ECONOMIC ACTIVITY

Article 2. Article 4. Importance of Employment, Production and Fair Labour Standards. Demand in relation to the Purpose of this Charter. Each Member, recognizing that all countries 1. The Members recognize that the avoidance have a common interest in the achievement and of unemployment or under-employment through maintenance of fair labour standards related the achievement and maintenance in each to productivity, shall take whatever action country of useful employment opportunities may be appropriate and feasible to eliminate for those able and willing to work and of a sub-standard conditions of labour in production large and steadily growing volume of produc- for export and generally throughout its terri- tion and effective demand for goods and ser- tory. Members which are also members of the vices is not of domestic concern alone, but is International Labour Organization shall co- also a necessary condition for the realization operate with that organization in giving effect of the general purpose and the objectives set to this undertaking. forth in Article I of this Charter, including the expansion of international trade, and thus for the well-being of all other countries. Article 5. 2. The Members recognize that, while the Removal of Maladjustments within the Balance avoidance of unemployment or under-employ- of Payments. ment must depend primarily on domestic measures, such measures should be supple- 1. In the event that a persistent maladjust- mented by concerted action under the spon- ment within a Member's balance of payments sorship of the.Economic and Social Council of is a major factor in a situation in which other the United Nations in collaboration with the Members are involved in balance-of-payments appropriate inter-governmental organizations, difficulties which handicap them in carrying each of these bodies acting within its respective out the provisions of Article 3 without resort sphere and consistently with the terms and to trade restrictions, the Member shall make its purposes of its basic instrument. full contribution, while appropriate action shall be taken by the other Members concerned, 3. The Members recognize that the regular towards correcting the situation. exchange of information and views among Members is indispensable for successful co- 2. Action in accordance with this Article operation in the field of employment and shall be taken with due regard to the desira- economic activity and should be facilitated by bility of employing methods which expand the Organization. rather than contract international trade. Article 3. Article 6. Maintenance of Domestic Employment. I. Each Member shall take action designed Exchange of Information and Consultation. to achieve and maintain full and productive 1. The Members and the Organization shall employment and large and steadily growing participate in arrangements made or sponsored demand within its own territory through by the Economic and Social Council of the measures appropriate to its political, economic United Nations, including arrangements with and social institutions. appropriate inter-governmental organizations: 2. Measures to sustain employment, pro- (a) for the systematic collection, analysis duction and demand shall be consistent with and exchange of information on domestic the other objectives and provisions of this employment problems, trends and poli- Charter. Members shall seek to avoid measures cies, including as far as possible infor- which would have the effect of creating balance- mation relating to national income, of-payments difficulties for other countries. demand and the balance of payments. - II - (b) for consultation with a view to concerted Article 7. action on the part of governments and inter-governmental organizations in the Safeguards for Members Subject to External field of employment policies. Deflationary Pressure. The Organization shall have regard, in the exercise of its functions under other provisions 2. The Organization shall, if it considers that of this Charter, to the need of Members to take the urgency of the situation so requires, initiate action within the provisions of this Charter consultations among Members with a view to to safeguard their economies against defla- their taking appropriate measures against the tionary pressure in the event of a serious or international spread of a decline in employ- abrupt decline in the effective demand of other ment, production or demand. countries. - I2 --

CHAPTER III

ECONOMIC DEVELOPMENT

Article 8. and the carrying-out of its programmes for cconomic development, or shall assist it to Importance of Economic Development procure such advice. Such advice or assistance in Relation to the Purpose of this Charter. shall be furnished upon terms to be agreed and in such collaboration with other appropriate The Members recognize that all countries inter-governmental organizations as will use have a common interest in the productive use fully the special competence of each of them. of the world's human and material resources, The Organization shall, upon the same condi- and that the industrial and general economic tions, likewise aid Members in procuring development of all countries, and particularly appropriate technical assistance. of those in which resources are as yet relatively undeveloped, will improve opportunities for employment, enhance the productivity of Article 11. labour, increase the demand for goods and services, contribute to economic balance, expand Means of promoting Economic Development. international trade and raise levels of real income. 1. Progressive industrial and general economic development requires among other things adequate supplies of capital funds, materials, Article 9. modern equipment and technology, and technical and managerial skills. Accordingly, Development of Domestic Resources no Member shall impose unreasonable or and Productivity. unjustifiable impediments that would prevent other Members from obtaining on equitable Members shall within their respective terri- terms any such facilities for their economic tories take action designed progressively to development, and the Members shall co-operate develop, and where necessary to reconstruct, in accordance with Article 10, in providing or industrial and other economic resources and to arranging for the provision of such facilities, raise standards of productivity through meas- within the limits of their power. ures consistent with the other provisions of this Charter. 2. In order to stimulate and assure the provision and exchange of facilities for industrial and general economic development, no Member shall take unreasonable or unjustifiable action Article 10. within its territories injurious to the rights or interests of nationals of other Members in Co-operation for Economic Development. the enterprise, skills, capital, arts or technology which they have supplied. 1. Members shall co-operate with oneanother, with the Economic and Social Council of the 3. The Organization may make recommen- United Nations, with the Organization and dations for and promote international agree- with other appropriate inter-governmental ment on measures designed to assure just and organizations in promoting industrial and equitable treatment for the enterprise, skills, general economic development. capital, arts and technology brought from one Member country to another, the 2. Subject to any arrangements entered into including between the Organization and the Economic elaboration and adoption of a general agreement and Social Council and appropriate inter- or statement of principles as to the conduct, governmental organizations, the Organization practices and treatment of foreign investment. shall, within its powers and resources, furnish 4. The term "nationals" as used in Articles any Member which so requests with appropriate 1I and I2 comprises natural and legal persons. advice concerning its plans and the financing

Chapter III. Wherever the term "industrial and general economic development" or the term economic development" is used in this Chapter, it is intended also to include "reconstriction". - I3 -- Article 12. the investments of nationals of other Members which are appreciably more International Investment for Economic onerous than those which the Member Development imposes in similar circumstances upon its own nationals or upon the nationals 1. The Members recognize that, with ap- of third countries. Nevertheless the propriate safeguards, including measures ade- following shall not be deemed to be in quate to ensure that foreign investment is not conflict with this obligations: used as a basis for interference in the internal (i) requirements in force at the time affairs or national policies of Members, inter- of making the investment or at the national investment, both public and private, time that the Charter shall, have can be of great value in promoting economic come into force with respect to the development and consequent social progress. They recognize that such development would Member, whichever is later; be facilitated if Members were to afford, for (ii) requirements in force at the time international investments acceptable to them, of any substantial addition to the reasonable opportunities upon equitable terms investment or change in the nature to the nationals of other Members and security of the business based upon the for existing and future investments. Accord- investment, in respect of such ingly they agree to provide, consistent with addition or such change; the limitations-'recognized as necessary in this (iii) reasonable measures to ensure par- Article, the widest opportunities for investment ticipation under (iv) below, by the and the greatest security for existing and nationals of the Member in the future investments. future expansion of any branch of industry within its territories 2. Subject to restrictions imposed in accord- through increased investment; Pro- ance with the Articles of Agreement of the vided that, if the nationals of other International Monetary Fund or with a special Members whose interests are ma- exchange agreement entered into between the terially affected believe that the Member and the Organization underparagraph 6 measure taken is inconsistent with of Article 24 of this Charter, the provisions of this paragraph, the Member taking the measure (a) with respect to existing investments or will provide adequate opportunity to future investments after they have for consultation with a view to been made, no Member shall impose, reaching a satisfactory settlement directly or indirectly, requirements on with the affected nationals;

Article 12. of peace or in conformity with other international agreements related to the conclusion of the war. The Delegation of Czechoslovakia reserved its position. The Belgian Delegation wishes to have it recorded The Delegation of New Zealand entered a formal reser- that, even though the word "prior" has not been included vation pending further consideration. in the text, its interpretation of just consideration or The Delegation of Norway deferred for the time being compensation would include the idea that the amount of its decision on the ground that it had not bad sufficient consideration or compensation to be paid should be fixed time to study this Article. "prior" to the property being taken into public owner- Paragraph 3 of Article 12 (Drafting Committee Report, ship or placed under public management or occupation. New York) was deleted on the ground that this subject A Member's obligation to ensure the payment of just was already covered by the provisions of Article 89. In consideration or just compensation to a foreign national this connection, without prejudice to the usual practice (insofar as it is an obligation to make payment in cur- and procedure under the general principles of interna- rency) is essentially an obligation to make payment in the tional law, it was agreed that deletion of paragraph 3 local currency of that Member. The extent to which would carry no implication that a Member could not, as transfers of such payment into other currencies are to be under other parts of the Charter, present a complaint to allowed is for determination by the Member government the Organization arising out of a violation of Articles 11 in accordance with its general foreign exchange policy or 12 and affecting the interests of a national of such maintained consistently with the Articles of Agreement Member. of the International Monetary Fund or with a special exchange agreement executed by that Member pursuant Paragraph 2. to Article 24 of the Charter. This shall not prevent a country taking action to give effect to any greater The word "just" in paragraphs 2 (a) (iv) and 2 (b) of obligations in respect of such transfers as it may have Article I2 covers all aspects of the payment of considera- accepted in an international agreement, provided that tion or compensation, including adequacy and time of such action is consistent with its obligations under the payment, from the point of view both of the payer and Charter and under the Articles of Agreement of the of the receiver, and makes it clear that compensation International Monetary Fund. A Member would not, would not be payable where, because of a violation of a however, be fulfilling its obligation to ensure the payment iaw in force, property has been forfeited or taken under of just consideration or just compensation if it restricted public management or occupation whether by executive the transferability of such payments to a greater extent action in accordance with pre-existing law or as a penalty than required by its general foreign exchange policy as under judicial procedure. conditioned by the preceding sentence. In this connec- The provisions of paragraphs 2 (a) (iv) and 2 (b) are tion, attention is invited to paragraph (i) of Article XIX not applicable when the measures of transfer of owner- of the Articles of Agreement of the International Mone- ship have been effected pursuant to the terms of a treaty tary Fund. - I4 - (iv) reasonable measures taken to ensure any obligation which the Member has assumed the transfer of ownership, in whole through. negotiations with any other Member or or in part, of any investment within Members pursuant to Chapter IV, such appli- its territories from the nationals of cant 'Member shall so notify the Organization any other Member to its own na- and shall transmit to the Organization a tionals, it being understood that written statement of the considerations in such measures will provide for the support of the adoption of the proposed payment of just consideration for measure. the ownership transferred and that if the nationals of any other Member believe such provision has not been (b) The Organization shall promptly trans- made, the Member will provide mit such statement to all other Members, and adequate opportunity for consul- any Member which considers that its trade tation in the manner described would be substantially affected by the proposed in (iii) above. measure shall transmit its views to the Orga- nization within such period as shall be pre- (b) Members shall make just compensation scribed by the Organization. if the property, in which a national of another Member has an interest, is taken into public ownership or placed under (c) The Organization shall then promptly public management or occupation. examine the proposed measure to determine whether it concurs in it, with or without modification, and shall in its examination have 3. Members shall promote co-operation be- regard to the provisions of this Charter, to tween national and foreign enterprises or in- the considerations presented by the applicant vestors for the purpose of fostering economic Member and its stare of economic development development in cases where such co-operation or reconstruction, to the views presented by appears to the Members concerned to be Members which may be substantially affected, appropriate. and to the effect which the proposed measure, with or without modification, is likely to have on international trade. Article 13. Governmental Assistance to Economic 3. (a) If as a result of its examination Development. pursuant to paragraph 2 (c) of this Article the Organization concurs in principle in any 1. The Members recognize that special proposed measure, with or without modifica- governmental assistance may be required tion, which. would be inconsistent with any to promote the establishment, development or obligation that the applicant Member has reconstruction of particular industries, or par- assumed through negotiations with any other ticular branches of agriculture, and that in Member or Members pursuant to Chapter IV, appropriate circumstances the grant of such or which would tend to nullify or impair the assistance in the form of protective measures is benefit to such other Member or Members of justified. At the same time they recognize that any such obligation, the Organization shall an unwise use of such measures would impose sponsor and assist in negotiations between undue burdens on their own economies, un- the applicant Member and the other Member warranted restrictions on international trade or Members which would be substantially and might increase unnecessarily the difficulties affected with a view to obtaining substantial of adjustment for the economies of other coun- agreement. The Organization shall establish tries. and communicate to the Members concerned a time schedule for such negotiations. 2. (a) If a Member in the interest of its programme of economic development or recon- (b) Members shall commence the negotia- struction considers it desirable to adopt any tions provided for in sub-paragraph (a) of this non-discriminatory measure which would con- paragraph within such period as the Organiza- flict with any provision of Chapter IV or with tion may prescribe and shall thereafter, unless

Article 13. The Delegation of India reserved its position on this The Delegation of China reserved its position but Article and the whole subject of quantitative restrictions indicated that it was prepared to recommend the text of for protective purposes while stating that it had reported this Article to its Government for further consideration the text of this Article to its Government and would without committing its Government and while reserving make a further statement in this connection upon receipt the right to request re-examination of this Article at the of instructions from its Government. World Conference. The Delegation of Lebanon reserved its position pending the World Conference. - 15 - the Organization decides otherwise, proceed not reduce imports below the level obtaining continuously with such negotiations with a in the most recent- representative period pre- view to reaching substantial agreement in ceding the date on which the Member's original accordance with the time schedule laid down notification wàs made under paragraph 2 of by the Organization. this Article. (c) Upon substantial agreement being 5. (a) In the case of measures referred to in reached, the Organization may release the paragraph 3 of this Article, the Organization applicant Member from the obligation referred shall, at the earliest opportunity but ordinarily to in sub-paragraph (a) of this paragraph or within fifteen days after receipt of the state- from any other relevant obligation under this ment referred to in paragraph 2 (a) of this Charter, subject to such. limitations as may Article, advise the applicant Member of the have been agreed upon in the negotiations date by which the Organization will notify between the Members concerned. it whether or not it concurs in principle in the proposed measure, with or without modification. 4. (a) If, as a result of its examination pursuant to paragraph 2 (c) of this Article, the (b) In the case of measures referred to in Organization concurs in any proposed measure, paragraph 4 of this Article, the Organization with or without modification, other than those shall, as provided for in paragraph 5 (a), advise provided for in paragraph 3 (a) of this Article, the applicant Member of the date by which it which would be inconsistent with any provision will notify it whether or not it is released from of Chapter IV, the Organization may release such obligation or obligations as may be rele- the applicant Member from any obligation vant; Provided that, if the applicant Member under such provision, subject to such limita- does not receive a final reply by the date set by the the Organization, it may, after communicating tions as Organization may impose. with the Organization, institute the proposed (b) If, having regard to the provisions of measure after the expiration of a further thirty paragraph 2 (c), it is established in the course days from such date. of such examination that such measure is un- likely to be more restrictive of international trade than any other practicable and reasonable measure permitted under this Charter Article 14. which could be imposed without undue dif- Transitional Measures. ficulty and that it is the one most suitable for the purpose having regard to the economics 1. Any Member may maintain any non- of the industry or the branch of agriculture discriminatory protective measure which has concerned and to the current economic con- been imposed for the establishment, develop- dition of the applicant Member, the Organiza- ment or reconstruction of particular industries, tion shall concur in such measure and grant or particular branches of agriculture, and such release as may be required to make such which is not otherwise permitted by this measure effective. Charter; Provided that (a) any such Member which is a signatory of (c) If in anticipation of the concurrence the General Agreement on Tariffs and of the Organization in the adoption of a measure Trade shall have notified the other signa- concerning which notice has been given under tory governments not later than thirty paragraph 2 of this Article, other than a measure days prior to the day of the signature provided for in paragraph 3 (a) of this Article, of the Agreement of each product on there should be an increase or threatened which any such existing measure is to increase in the importations of the product or be maintained and of the nature and products concerned, including products which purpose of such measure, and can be directly substituted therefor, so substantial as to jeopardize the plans of the (b) any such Member not being a signatory applicant Member for the establishment, deve- of the General Agreement but having lopment or reconstruction of the industry or signed this Charter on the day of its industries concerned, or branches of agricul- general signature, shall have notified ture concerned, and if no preventive measures the other governments signing this consistent with this Charter can be found Charter on that day, prior to their which seem likely to prove effective, the appli- signature, of each product on which cant Member may, after informing, and when any such existing measure is to be main- practicable consulting with, the Organization, tained and of the nature and purpose adopt such other measures as the situation of such measure, and may require pending a determination by the (c) any other such Member shall, prior to Organization, provided that such measures do the day of its signature of this Charter,

Article 14. The Delegation of Lebanon reserved its position Paragraph 1 (b) and (c). pending the World Conference. The general signature referred to in sub-paragraphs (b) and (c) above is the signature contemplated at the conclusion of the World Conference. - 16 - have notified the existing measures that Article 15. it wishes to maintain to all governments which signed the Charter on the day of Preferential Arrangements for Economic its general signatures, or if this Charter has already entered into force, to the Development. Members of the Organization. Any Member maintaining any such measure 1. The Members recognize that special shall within one month of assuming circumstances may justify new preferential Membership in the Organization notify arrangements between two or more countries, it of the measure concerned, the con- not contemplating a customs union, in the siderations in support of its mainte- interest of the programmes of economic develop- nance and the period for which it wishes ment or reconstruction of one or more such to maintain the measure. The Organi- countries. Subject to such limitations as it zation shall, as soon as possible, but may impose, the Organization may grant [by in any case within twelve months of such an affirmnative vote of two-thirds of the Members Member assuming Membership in the voting] an exception to the provisions of Organization, examine and give a deci- Chapter IV to permit such arrangements to be sion concerning the measure as if it had made. been submitted to the Organization for its concurrence under Article 13. 2. Any Member or Members contemplating such an arrangement shall notify the Orga- 2. The Organization, in making a decision nization thereof and shall transmit to it a under this Article specifying a date by written statement of the considerations in which any modification in or withdrawal of the support of the adoption of the arrangement. measure is to be made, shall have regard to The Organization shall then examine and give the possible need of a Member for a suitable a decision concerning the proposal as if it had period of time in which to make such modi- been submitted for its concurrence under fication or withdrawal. Article I3. Any country which would be accorded preferential treatment by another 3. This Article shall not be construed to country under the proposed arrangement shall apply to a measure be which would inconsistent be regarded as an applicant Member for the with any obligation that the Member concerned purpose of that Article. has assumed through negotiations with any other Member or Members pursuant to Chapter IV or which would tend to nullify or impair the benefit to such other Member or Members of any such obligation.

Paragraph 1 (c). Article 15. The United States Delegation wishes to have it recor- The Delegation of Brazil entered a reservation pending ded that it assumes that sub-paragraph (c) is to be inter- a decision on the question of voting requirements under preted as permitting Members so notified effectively to this Article. question the nature and extent of such measures before The Delegation of Chile reserved its position both with the adherence of the Member proposing to maintain them respect to the principle of prior approval and with respect becomes effective. to the voting requirements of a two-thirds majority if the latter is decided upon. -17 -

CHAPTER IV COMMERCIAL POLICY

SECTION A. - TARIFFS, PREFERENCES, AND INTERNAL TAXATION AND REGULATION

Article 16. subject to the conditions set forth therein; General Most-favoured-nation Treatment. (c) preferences in force exclusively between the United States of America and the 1. With respect to customs duties and charges of any kind imposed on or in connection Republic of Cuba; with importation or exportation or imposed on (d) preferences in force exclusively between the international transfer of payments for neighbouring countries listed in Annexes imports or exports, and with respect to the E , F and ... of this Charter. method of levying such duties and charges, and with respect to all rules and formalities in 3. The margin of preference on any product connection with importation and exportation, in respect of which a preference is permitted and with respect to all matters referred to in under paragraph 2 of this Article shall not paragraphs 1 and 2 of Article I8, any advantage, exceed (a) the maximum margin provided for favour, privilege or immunity granted by any under the General Agreement on Tariffs and Member to any product originating in or Trade or any subsequent operative agreement destined for any other country, shall be accorded resulting from negotiations under Article 17, immediately and unconditionally to the like or (b) if not provided for under such agreements, product originating in or destined for all other the margin existing either on 1o April I947 or Member countries respectively. on such earlier date as mayhave been established for a Member as a basis for negotiating the 2. The provisions of paragraph I of this General Agreement on Tariffs and Trade, at the Article shall not require the elimination, except option of such Member. as provided in Article I7, of any preferences in respect of import duties or charges which do not exceed the levels provided for in paragraph 3 Article 17. of this Article and which fallwithin the following descriptions: Reduction of Tariffs and Elimination (a) preferences in force exclusively between of Preferences. two or more of the territories listed in 1. Each Member shall, upon the request of Annex A to this Charter, subject to the the Organization, enter into and carry out with conditions set forth therein; such other Member or Members as the Orga- (b) preferences in force exclusively between nization may specify, negotiations directed to two or more territories which on I July the substantial reduction of tariffs and other I939 were connected by common sove- charges on imports and exports and to the reignty or relations of protection or elimination of the preferences referred to in suzerainty and which are listed in paragraph 2 of Article I6 on a reciprocal and

Annexes B, C, D and ... of this Charter, mutually advantageous basis. These nego-

Article 16. The Delegations of Chile and Lebanon reserved their position on this Article. The following kinds of customs action, taken in accordance with established uniform procedures, would not Paragraph 2. be contrary to a general binding of margins of preference: The Delegation of Cuba reserved its position in relation to preferences accorded by differential internal (i) the re-application to an imported product of taxes. a tariff classification or rate of duty, properly applicable to such product, in cases in which the applica- Article 17. tion of such classification or rate to such product was The provisions of this Article do not prevent Members temporarily suspended or inoperative on 10 April from concluding new, or maintaining existing, bilateral 1947; and tariff agreements which are not incorporated in the (ii) the application to a particular commodity of a General Agreement on Tariffs and Trade, provided that tariff item other than that which was actually applied such agreements are consistent with the relevant prin- to importations of that commodity on 1o April 1947, ciples of Article 17 and that the concessions made by a in cases in which the tariff law clearly contemplates Member under such agreements are generalized to all that such commodity may be classified under more members in accordance with Article 16. than one tariff item. The Cuban Delegation reserved its position. --- 18 -- tiations shall proceed in accordance with the 2. If any Member considers that any other following rules: Member has failed to fulfil its obligations under paragraph I of this Article, such Member may (a) In the negotiations relating to any refer the matter to the Organization, which, specific product after investigation, shall make appropriate recommendations to the Members concerned. (i) when a reduction is negotiated only If the Organization finds that a Member has in the most-favoured-nation rate, failed without sufficient justification, having such reductions shall operate auto-. regard to its economic position and the pro- matically to reduce or eliminate visions of the Charter as a whole, to carry the margin of preference applicable out negotiations within a reasonable period of to that product; time in accordance with the requirements of (ii) when a reduction is negotiated only paragraph I of this Article, the Organization in the preferential rate, the most- may determine that any Member or Members favoured-nation rate shall auto- shall, notwithstanding the provisions of Article matically be reduced to the extent 16, be entitled to withhold from the trade of of such reduction; the other Member any of the tariff benefits which may have been negotiated pursuant to (iii) when it is agreed that reductions paragraph I of this Article, and embodied in will be negotiated in both the most- Part I of the General Agreement on Tariffs favoured-nation rate and the pre- and Trade. If such benefits are in fact with- ferential rate, the reduction in each held, so as to result in the application to the shall be that agreed by the parties trade of the other Member of tariffs higher than to the negotiations; would otherwise have been applicable, such other Member shall then be free, within sixty (iv) no margin of preference shall be days after such action is taken, to withdraw increased. from the Organization upon the expiration of sixty days from the date on which written (b) The binding of low tariffs or of tariff-free notice of such withdrawal is received by the treatment shall in principle be recog- Organization. nized as a concession equivalent in value to the substantial reduction of high tariffs 3. The provisions of this Article shall operate or the elimination of tariff preferences. in accordance with the provisions of Article 81. (c) Account shall be taken of any concessions Article 18. which either Member is already extending to the other Member by virtue ofprevious National Treatment on Internal Taxation negotiations regarding tariffs and pre- and Regulation. ferences pursuant to this Article. 1. The products of any Member country imported into any other Member country shall (d) The results of such negotiations shallbe be exempt from internal taxes and other incorporate in the General Agreement internal charges of any kind in excess of those on Tariffs and Trade, signed at ...... applied directly or indirectly to like products on . 1947 by of national origin. Moreover, in cases in which agreement with the parties to that there is no substantial domestic production Agreement, and thereupon the parties of like products of national origin, no Member to such negotiation shall become con- shall apply new or increased internal taxes on tracting parties to the General Agree- the products of other Member countries for the ment on Tariff Trade if they are not so purpose of affording protection to the production already. of directly competitive or substitutable products

Paragraph 1. Article 18. The undertaking to negotiate regarding preferences The Delegation of Norway reserved its position on necessarily implies that prior international commitments this Article. to grant particular preferences will not be permitted to frustrate the undertaking to negotiate. For this reason Paragraph 1. the provisions of sub-paragraph 1 (a) of the New York The Delegation of China reserved its position provision- draft have been omitted from the Charter as being ally and proposed the deletion of the second and third implicit. sentences. Obviously any agreement reached affecting preferences The Delegation of Chile reserved its position on the provided for in any prior commitment would require. in second and third sentences. order to be implemented, such change in the latter as be The Delegation of Cuba reserved its position and pro- might necessary to give effect to the agreement. This posed a new paragraph permitting the exemption of change would either have to be agreed between the domestic products from internal taxes for development parties to the prior commitment or, if they couldnot purposes. agree, the party wishing to make the change in order to proceed, would have to terminate the prior commitment in accordance with its terms. - 19 - which are not similarly taxed; existing internal 5. The provisions of this Article shall not taxes of this kind shall be subject to negotiation apply to the procurement by governmental for their reduction, or elimination in the manner agencies of products purchased for govern- provided for in respect of tariffs and preferences mental purposes and not for resale or use in under Article 17. the production of goods for sale, nor shall they prevent the payment to domestic pro- 2. The products of any Member country ducers only of subsidies provided for under imported into any other Member country shall Article 25, including payments to domestic be accorded treatment no less favourable than producers derived from the proceeds of internal that accorded to like products of national taxes or charges and subsidies effected through origin in respect of all laws, regulations and governmental purchases of domestic products. requirements affecting their internal sale, offering for sale, purchase, transportation, distribution, or use. This paragraph shall not Article 19. prevent the application of differential transpor- Special Provisions relating to Cinematograph tation charges which are based exclusively on Films. the economic operation of the means of transport and not on the nationality of the If any Member establishes or maintains product. internal quantitative regulations relating to exposed cinematography films, such regulations 3. In applying the principles of paragraphs 2 shall take the form of screen quotas which of this Article to internal quantitative regula- shall conform to the following conditions and tions relating to the mixture, processing or use requirements: of products in specified amounts or proportions, the Members shall observe the following (a) Screen quotas may require the exhibi- provisions: tion of cinematography films of national origin during a specified minimum pro- (a) no regulations shall be made which, portion of the total screen time actually formally or in effect, require that any utilized over a specified period of not specified amount or proportion of the less than one year in the commercial product in respect of which such regu- exhibition of all films of whatever origin, lations are applied must be supplied and shall be computed on the basis of from domestic sources; screen time per theatre per year or the (b) no Member shall, formally or in effect, equivalent thereof. restrict the mixing, processing or use (b) With the exception of screen time re- of a product of which there is no sub- served for films of national origin under stantial domestic production with a view a screen quota, no screen time, including to affording protection to the domestic screen time released by administrative production of a directly competitive or action from minimum time reserved substitutable product. for films of national origin, shall formally or in effect be allocated among 4. The provisions of paragraph 3 of this sources of supply. Article not to: shall apply (c) Notwithstanding the provisions of sub- (a) any internal quantitative regulation paragraph (b) above, Members may relating to cinematograph films and maintain screen quotas conforming to meeting the requirements of Article 19; the conditions of sub-paragraph (a) which reserve a minimum proportion of (b) any other measures of internal quanti- screen time for films of a national origin tative control in force in any Member other than that of the Member imposing country on 1 July I939 or I0 April 1947 such screen quotas; Provided that no at the option of that Member; Provided such minimum proportion of screen time that any such measure which would be increased level in in conflict with the provisions of para- shall be above the graph 3 of this Article shall not be effect on 10 April I947. modified to the detriment of imports (d) Screen quotas shall be subject to nego- and shall be subject to negotiations for tiation for their limitation, liberali- its limitation, liberalization or elimina- zation or elimination in the manner pro- tion in the manner provided for in respect vided for in respect of tariffs and pre- of tariffs and preferences under Article 17. ferences under Article I7.

Paragraph 3. Paragraph 5. The Chilean Delegation reserved its position. The Delegation of China reserved its position provisionally and proposed to delete the words "or use in Paragraph 4. the production of goods for sale". The New Zealand Delegation reserved its position on sub-paragraph (b) pending further consideration. Article 19. The Delegation of the United Kingdom reserved its position for the time being. - 20-

SECTION B. - QUANTITATIVE RESTRICTIONS AND EXCHANGE CONTROLS

Article 20. product can be directly substituted; or General Elimination of Quantitative Restrictions. (ii) to remove a temporary surplus of the like domestic or, if there 1. No prohibitions or restrictions other than product, duties, taxes or other charges, whether made is no substantial domestic produc- effective through quotas, import or export tion of the like product, of a domes- licences or other measures, shall be instituted tic product for which the imported products can be directly substituted, or maintained by any Member on the importation of any product of any other Member by making the surplus available to country or on the exportation or sale for export certain groups of domestic con- of any product destined for any other Member sumers free of charge or at prices country. below the current market level; or (iii) to restrict the quantities permitted 2. The provisions of paragraph I of this to be produced of any animal pro- Article shall not extend to the following: duct the production of which is directly dependent, wholly or (a) export prohibitions or restrictions tem- mainly, on the imported commodity, porarily applied to prevent or relieve if the domestic production of that critical shortages of foodstuffs or other commodity is relatively negligible. products essential to the exporting Member country; Any Member applying restrictions on the (b) import and export prohibitions or res- importation of any product pursuant to trictions necessary to the application of this sub-paragraph shall give public standards or regulations for the classi- notice of the total quantity or value of fication, grading or marketing of commo- the product permitted to be imported dities in international trade; if, in the during a specified future period and of opinion of the Organization, the stan- any change in such quantity or value. dards or regulations adopted by a Mem- Moreover, any restrictions applied under ber under this sub-paragraph have an (1) above shall not be such as will unduly restrictive effect on trade, the reduce the total of imports relative to Organization may request the Member the total of domestic production, as to revise the standards or regulations; compared with the proportion which Provided that it shall not request the might reasonably be expected to rule revision of standards internationally between the two in the absence of agreed under paragraph 7 of Article 38; restrictions. In determining this proportion, the Member shall pay due regard (c) import restrictions on any agricultural to the proportion prevailing during a or fisheries product, imported in any previous representative period, and to form, necessary to the enforcement of any special factors which may have governmental measures which operate: affected or may be affecting the trade in the product concerned. (i) to restrict the quantities permitted to be marketed or produced of the like domestic product, or, if there is 3. Throughout this Section the terms "import - no substantiai domestic production restrictions " or " export restrictions include of the like product, of a domestic restrictions made effective through State-trad- product for which the imported ing operations.

Article 20. Paragraph 2 (c). The Cubau Delegation reserved its position in view The Chilean Delegation reserved its position. of the rejection of its proposal for excepting restrictions The term "in any form" in this paragraph covers the up to 50% of domestic consumption for promoting the same products when in an early stage of processing and maintenance, development or reconstruction of an indus- still perishable, which compete directly with the fresh try. product and if freely imported -would tend to make the The Chinese and Lebanese Delegations reserved their restriction on the fresh product ineffective. in position respect of the proposal by the Chinese Delega- Paragraph 2: last sub-paragraph. tion to add a sub-paragraph 2 (d) providing a procedure for releasing a Member, without the prior approval of the The term "special factors" includes changes in relative Organization, from the obligation to refrain from import productive efficiency as between domestic and foreign restrictions when the industry in question is of vital producers, or as between different foreign producers, but importance. not changes artificially brought about by means not permitted under the Charter. - 21 Article 21. fulfilment of a Member's obligations under Article 3 relating to the achievement and main- Restrictions lo safeguard the BalanceofPayments. tenance of- full and productive employment and large and steadily growing demand or its 1. Notwithstanding the provisions of para- obligations under Article 9 relating to the graph 1 of Article 20, any Member, in order to reconstruction or development of industrial safeguard its external financial position and and other economic resources and to the raising balance of payments, may restrict the quantity of standards of productivity, such a Member or value of merchandise permitted to be im- may experience a high level of demand for ported, subject to the provisions of the follow- imports. Accordingly: ing paragraphs of this Article. (i) notwithstanding the provisions of 2. (a) No Member shall institute, maintain paragraph 2 of this Article no or intensify import restrictions under this Member shall be required to with- Article except to the extent necessary draw or modify restrictions on the ground that a change in such policies (i) to forestall the imminent threat of, or would render unnecessary the restric- to stop, a serious decline in its mone- tions which it is applying under this tary reserves, or Article. (ii) in the case of a Member with very low monetary reserves, to achieve a reason- (ii) any Member applying import res- able rate of increase in its reserves; trictions under this Article may due regard being paid in either case determine the incidence of the to any special factors which may be restrictions on imports of differentt affecting the Member's reserves or products or classes of products in need for reserves, including, where such a'way as to give priority to the special external credits or other re- importation of those products which sources are available to it, the need to are more essential in the light of provide for the appropriate use of such such policies. credits or resources. (c) Members undertake, in carrying out (b) Mémbers applying restrictions under their domestic policies: sub-paragraph (a) shall progressively relax them as such conditions improve, maintaining (i) to pay due regard to the need them only to the extent that the conditions for restoring equilibrium in their specified in that sub-paragraph still justify balance of payments on a sound and their application. They shall eliminate the lasting basis and to the desirability restrictions when conditions would no longer of assuring an economic employment justify their institution or maintenance under of productive resources; that sub-paragraph. (ii) not to apply restrictions so as to prevent unreasonably the importa- 3. (a) The Members recognize that in the tion of any description of goods in early years of the Organization all of them will minimum commercial quantities, the be confronted in varying degrees with problems exclusion of which would impair of economic adjustment resulting from the regular channels of trade, or restric- war. During this period the Organization tions which would prevent the shall, when required to take decisions under importation of commercial samples, this Article or under Article 23, take full or prevent compliance with patent, account of the difficulties of post-war adjust- trademark, copyright, or similar ment and of the need which a Member may procedures; and have to use import restrictions as a step towards the restoration of equilibrium in its balance of (iii) to apply restrictions under this a Article in such a way as to avoid payments on sound and lasting basis. unnecessary damage to the commer- (b) The Members recognize that, as a cial or economic interests of any result of domestic policies directed toward the other Member.

Article 21. Paragraph 3 (b) (i). The Belgian Delegation reserved its position pending The phrase "notwithstanding the provisions of para- examination of the Charter as a whole by the Belgian graph 2 of this Article" has been included in the text Government. to make it quite clear that a Member's import restrictions otherwise necessaryy" within the meaning of sub-para- Paragraph 2. graph 2 (a) shall not be considered unnecessary on the The Australian Delegation recorded a reservation ground that a change in domestic policies as referred to against the text of paragraph 2 (b) on the ground that in the text could improve a Member's monetary reserve the present language does not accurately express the position. The phrase is not intended to suggest that intended meaning. the provisions of paragraph 2 are affected in any other way. - 22 -

4. (a) Any Member which is not applying zation. If no such settlement is reached and if restrictions under this Article, but is consider- the Organization determines that the restric- ing the need to do so, shall, before instituting tions are being applied inconsistently with para- such restrictions (or, in circumstances in which graph 2 or 3 of this Article or with Article 22 prior consultation is impracticable, immediately (subject to the provisions of Article 23), the after doing so), consult with the Organization Organization shall recommend the withdrawal as to the nature of its balance-of-payments diffi- or modification of the restrictions. If the culties, alternative corrective measures which restrictions are not withdrawn or modified in may be available, and the possible effect of accordance with the recommendation of the such measures on the economies of other Organization within sixty days, the Organiza- Members. No Member shall be required in tion may release any Member from specified the course of consultations under this sub- obligations under this Charter, towards the paragraph to indicate in advance the choice Member applying the restrictions. or timing of any particular measure which it may ultimately determined to adopt. (e) It is recognized that premature disclosure of the prospective application, withdrawal or (b) The Organization may at any time invite modification of any restriction under this any Member which is applying import restric- Article might stimulate speculative trade and tions under this Article to enter into such con- financial movements which would tend to defeat sultations with it, and shall. invite any Member the purposes of this Article. Accordingly, the substantially intensifying such restrictions to Organization shall make provision for the consult within thirty days. A Member thus observance of the utmost secrecy in the conduct invited shall participate in such discussions. of any consultation. The Organization may invite any other Member to take part in these discussions. Not later 5. If there is a persistent and widespread than two years from the day on which this application of import restrictions under this Charter enters into force, the Organization shall Article, indicating the existence of a general review all restrictions existing on that clay and disequilibrium which is restricting international still applied under this Article at the time of the trade, the Organization shall initiate dis- review. cussions to consider whether other measures might be taken, either by those Members whose (c) Any Member may consult with the balances of payments are under pressure or by Organization with a view to obtaining the prior those Members whose balances of payments are approval of the Organization for restrictions tending to be exceptionally favourable, or by which the Member proposes, under this Article, any' appropriate inter-governmental organiza- to maintain, intensify or institute, or for the tion, to remove the underlying causes of the maintenance, intensification or institution of disequilibrium. On the invitation of the Organi- restrictions under specified future conditions. zation, Members shall participate in such As a result of such consultations, the Organiza- discussions. tion may approve in advance the maintenance, intensification or institution of restrictions by the Member in question insofar as the general extent, degree of intensity and duration of the restrictions are concerned. To the extent to Article 22. which such, approval has been given, the requirements of sub-paragraph (a) of this paragraph Non-discriminatory Administration shall be deemed to have been fulfilled, and the of Quantitative Restrictions. action of the Member applying the restrictions shall not be open to challenge under sub-para- 1. No prohibition or restriction shall be applied graph (d) of this paragraph on the ground that by any Member on the importation of any such action is inconsistent with the provisions of product of any other Member country or on the paragraph 2 of this Article. exportation of any product destined for any other Member country, unless the importation (d) Any Member which considers that ano- of the like product of all third countries or the ther Member is applying restrictions under this exportation of the like product to all third Article inconsistently with paragraph 2 or 3 countries is similarly prohibited or restricted. of this Article or with Article 22 (subject to the provisions of Article 23) may bring the matter 2. In applying import restrictions to any for discussion to the Organization; and the product, Members shall aim at a distribution Member applying the restrictions shall parti- of trade in such product approaching as closely cipate in the discussion. The Organization, if as possible to the shares which the various it is satisfied that there is a prima facie case Member countries might be expected to obtain that the trade of the Member initiating the in the absence of such restrictions, and to this procedure is adversely affected, shall submit end shall observe the following its views to the parties with the aim of achiev- provisions: ing a settlement of the matter in question which (a) wherever practicable, quotas represent- is satisfactory to the parties and to the Organi- ing the total amount of permitted -- 23 -

imports (whether allocated along sup- the administration of the restriction, the import plying countries or not) shall be fixed, licences granted over a recent period and the and notice given of their amount in distribution of such licences among supplying accordance with paragraph 3 (b) of this countries; Provided that there shall be no Article; obligation to supply information as to the names of importing or supplying enterprises. (b) in cases in which quotas are not practicable, the restrictions may be applied (b) In the case of import restrictions by means of import licences or permits involving the fixing of quotas, the Member without a quota; applying the restrictions shall give public notice of the total quantity or value of the shall not, except for purposes (c) Members product or products which will be permitted of operating quotas allocated in accord- to be imported during a specified future period of this ance with sub-paragraph (d) and of any change in such quantity or value. paragraph, require that import licences Any supplies of the product in question which be or permits utilized for the imnportation were en route at the time at which public of the product concerned from a parti- notice was given shall not be excluded from county or source; cular entry; Provided that they may be courted, so (ci) in cases in which, a quota is illlocated far as practicable, against the quantity per- among supplying countries, the Member mitted to be imported in the period in question, applying the restrictions may seek agree- and also, where necessary, against the quantities ment with respect to the allocation of permitted to be imported in the next following shares in the quota with all other period or periods, and Provided further that if Members having a substantial interest any Member customarily exempts from such in supplying the product concerned. restrictions products entered for consumption In cases in which this method is not or withdrawn from warehouse for consumption reasonably practicable, the Member during a period of thirty days after the day of concerned shall allot to Member countries such public notice, such practice shall be having a substantial interest in supplying considered full compliance with this sub- the product, shares based upon the paragraph. proportions, supplied by such Member (c) In the case of quotas allocated among countries during a previous representa- supplying countries the Member applying the tive period, of the total quantity or restriction shall promptly inform all other value of imports of the product, due Members leaving an interest in supplying the account being taken of any special product concerned of the shares in the quota factors which may have affected or may currently allocated, by quantity or value, to be affecting the trade in the product. the various supplying countries and shall give No conditions or formalities shall be public notice thereof. imposed which would prevent any Member from utilizing fully the share t. With regard to restrictions applied in of any such total quantity or value which accordance with. paragraph 2 (d) of this Article has been allotted to it, subject to import- or under paragraph 2 (c) of Article 20, the ation being made within any prescribed selection of a representative period for any period to which the quota may relate. product and the appraisal of any special factors affecting the trade in the product shall be made 3. (a) In cases in which import licences are initially by the Member applying the restric- issued in connection with import restrictions, tion; Provided that such Member shall, upon the Member applying the restriction shall the request of any other Member having a provide, upon the request of any Member substantial interest in supplying that product having an interest in the trade in the product or upon the request of the Organization, concerned, ail relevant information concerning consult promptly with the other Member or

Article 22. it as an immediate obligation, as long as the countries Paragraph 2, sub-paragraph (d). with whom Czechoslovakia has been conducting the major part of lier foreign trade arc not following a The Preparatory Committee omitted the phrase similar procedure. The obligation or giving public establishing "commercial considerations" as a rule for notice of global quotas and of the allocation of shares is, the allocation of quotas, because it was considered that in the particular situation of Czechoslovakia, too rigid its authorities not application by governmental might a rule and, unless practised generally, liable to have a always be practicable. Moreover, in cases where it was harmful effect upon the expansion of foreign trade in practicable, a Member could apply this consideration in general, and the economic interests of Czechoslovakia in the process of seeking agreement, consistently with the particular. In the view of the Czechoslovalk Delegation general rule laid down in the opening sentence of para- it should be sufficient to supply full information to graph 2. Members substantially interested in the exportation of * tragraph 3, sub-paragraphs (1) and (c). the respective commodity. The Czechoslovak Delegation reserved its position on the requirement of public notice in sub-paragraphs (b) Paragraph 4. and (c). The Czechoslovak Delegation, while not See note relating to "special factors" in connection opposed to the principle of public notice, cannot accept with the last sub-paragraph of paragraph 2 of Article 20. the Organization regarding the need for an its exports to other Members not adjustment of the proportion determined or party to the arrangement is appre- of the base period selected or for the re- ciably reduced below the level it appraisal of the special factors involved, or for could otherwise have been reasonably the eliminiation of conditions, formalities or expected to attain; any other provisions establisihed unilaterally (iii) such action does not cause unne- upon the allocation of an adequate quota or its cessary damage to the commercial or unrestricted utilization. economic interests of any other Member. 5, The provisions of this Article shall apply to any tariff quota instituted or maintained (c) Any Member taking action under this by any Member and, insofar as applicable paragraph shall observe the principles of sub- the principles of this Article shall also extend paragraph (b) of this paragraph. A Member to export restrictions and to any internal shall resist from transactions which prove to regulation or requirements under paragraph 2 be inconsistent with. that sub-paragraph but of Article I8. the Member shall not bc required to satisfy itself, when it is not practicable to do so, that the requirements of that sub-paragraph are Article 23. fulfilled in respect of individual transactions. (d) Memrbers undertake in framing and Exceptions to the Rule of Non-discrimination. carrying out any programmes for additional i. (a) The Members recognize that when a imports under this paragraph to pay due regard substantial and widespread disequilibrium pre- to the need to facilitate. the termination of any vails in international trade and payments a exchange arrangements which deviate from the Member applying restrictions under Article 2I obligations of Sections 2, 3 and 4 of Article VI 11 may be able to increase its imports from of the Articles of Agreenment of the Interna- certain sources without unduly depleting its tional Moneta.ry Fund and to the need to restore monetary reserves, if permitted to depart from * quilibrium in their balances of payments on a the provisions of Article 22. The Members sound and lasting basis. also recognize the need for close limitation of such departures so as not to handicap achieve- 2. Any Member taking action under para- ment of multilateral international trade. graph I of this Article shall keep the Organiza- tion regularly informed regarding such action (b) Accordingly, when a substantial and and shall provide such available relevant widespread disequilibrium prevails in inter- information as the Organization may request. national trade and payments a Member. applying import restrictions under Article 2I may 3. (a) Not later than I March 1952 (five relax such restrictions in a mannerwhich departs years after the date on which the International from the provisions of Article 22 to the extent Monetary Fund began operations) and in each necessary to obtain additional imports above year thereafter, any Member maintaining or the maximum total of imports which it could proposing to institute action under paragraph i afford in the light of the requirements of of this Article shall seek the approval of the paragraph 2 of Article 2I if its restrictions were Organization, which shall. thereupon determine fully consistent with Article 22; Provided that whether the circumstances of the Member (i) levels of delivered prices for products justify the maintenance or institution of action so imported are not established sub- by it under paragraph i of this Article. After stantially higher than those ruling I March I952 no Member shall maintain or for comparable goods regularly avail- institute such action without determination able from other Members, and that by the Organization that the Member's circum- any excess of such price levels for stances justify the maintenance or institution products so imported is progressively of such action, as the case may be, and the reduced over a reasonable period; subsequent maintenance or institution of such (ii) the Member taking such action does action by the Member shall be subject to any not do so as part of any arrangement limitations which the Organization may by which the gold or convertible prescribe for the purpose of ensuring compliance currency which the Member currently with the provisions of paragraph i of this receives directly or indirectly from Article; Provided that the Organization shall

Article 23. Paragraph 3. The Delegations of Czechoslovakia, Chile and Norway The Preparatory Committee considered the question of recorded a reservation. whether it was necessary to make express reference in 3 of 23 to the need of the organization The Belgian Delegation reserved its position pending paragraph Article toconsult -with the International Monetary Fund. It examination of the Charter as a whole by the Belgian concluded that no such reference was necessary since Government. such consultation in all appropriate cases was already required by virtue cf the provisions of paragraph 2 of Article 2.1. --- 25 -

not require that prior approval be obtained Monetary lund on condition that such for individual transactions. restrictions are in all other respects (b) If at any time the Organization finds consistent with Article 22, or that import restrictions are being applied by a (b) assist, in the period until 31 December Member in a discriminatory manner incon- 1951, by measures not involving sub- sistent with the exceptions provided for under stantial departure from the provisions paragraph i of this Article, the Member shall, of Article 22, andother Country whose within sixty days, remove the discrimination economy has beendisrupted by war. or modify it as specified by the Organization; Provided that any action under paragraph The provisions of this Section shall not of this Article, to the extent that it has been preclude: approved by the Organization under sub- paragraph (a) of this paragraph or to the (a) restrictions with equivalent effect to extent that it has been approved by the exchange restrictions authorized under Organization at the request of a Member under Section 3 (b) of Article VII of the a procedure analogous to that of paragraph 4 (c) Articles of Agreement of the Interna- of Article 2I, shall not be open to challenge tional Monetary Fund; or under this sub-paragraphl or under para- (b) restrictions under the preferential ar- graph 4 (d) of Article 2I on the ground that it rangements provided for ii Annex A is inconsistent with Article 22. of this Charter, subject to the conditions (c) Not later than I March. I950, and in set forth therein. each year thereafter so long as any Members are taking action under paragraph i of this Article 24. Article, the Organization shall report on the Exchange A arrangement. action still taken by Members under that paragraph. On or about I March 1952, and I.The Organization shall seek co-operation in each year thereafter so long as any Members with the International Monetary Fund to the are taking action under paragraph of this end that the Organization and the Fund may Article, and at such times thereafter as the pursue a co-ordinated policy With regard to Organization may decide, the Organization exchange questions within. the jurisdiction of shall review the question of whether there then the Fund and questions of quantitative restric- exists such. a substantial and widespread tions and other trade measures within the disequilibrium in international trade and pay- jurisdiction of the Organization. ments as to justify resort to paragraph I of this Article by Members. If it appears at any 2. ln all cases in which the Organization is date prior to i March i952 that there has been called upon to consider or deal with problems a substantial and general improvement in concerning monetary reserves, balance of pay- international trade and payments, the Orga- ments or foreign exchange arrangements, the nization may review the situation at that date. Organization shall consult fully with the Inter- If, as a result of any such reviews, the Organiza- national Monetary Fund. In such consultation determines that no such disequilibrium tion, the Organization shall accept all findings exists, the provisions of paragraph of this of statistical and other facts presented by the Article shall be suspended, and aIl actions International Monetary Fund relating to foreign authorized thereunrder shall cease six months exchange, monetary reserves and balance of after such determination. payments, and shall accept the determination of the I and as to whether action by a Member 4. The provisions of Article 22 shall not in exchange matters is in accordance with the preclude restrictions in accordance with Article Articles of Agreement ' of the International 2I which either Monetary Fund, or with the terms of a special exchange agreement between that Member and (a) are applied against imports from other the Organization. The Organization, in reach- countries, but not. as among themselves, ing its final decision in cases involving the by a group of territories having a criteria set forth in paragraph 2 (a) of Article 2I common quota in the International shall accept the determination of the Inter-

Paragraph 5 (b). of the last sentence: The Brazilian Delegation has recorded a reservation. "The Organization, i reaching its final decision in cases involving the criteria set forth in paragraph 2 (a) of Article 21 shall give special weight to the opinions of Article 24. the International Monetary Fund as to what conisti- The Belgian Delegation rescrved its position pending tutes. in consultation in such cases- examination of the Charter as a whole by the 13elgian on thue ground that since the Organization has a respon- Govern ment. sibility for action under Article 21, it should also retain the right of final decision as to whether the criteria of Paragraph 2. paragraph 2 (al) have been met. The Australian Delegation recorded a reservation The New Zealand Delegation also recorded a reserva- against this text, proposing the following formulation tion on the last sentence of paragraph 2. - 26 -

national Monetary Fund as to what constitutes tion. Any special exchange agreement entered a serious decline in the Member's monetary into by a Member under this paragraph shall reserves, a very low level of its monetary thereupon become part of its obligations under reserves or a reasonable rate of increase in its this Charter. monetary reserves, and as to the financial aspects of other matters covered in consultation 7. (a) A special exchange agreement between a Member and the Organization under in such, cases. paragraph 6 of this Article shall provide to the 3. The Organization; shall see; agreement satisfaction of the Organization that the objec- with the International Monetary Fund regard- tives of this Charter will not be frustrated as a ing procedures for consultation under paragraplh result of action in exchange matters by the 2 of this Article. Any such agreement, other Memberin question. than informal arrangements of a temporary or (b) The terms of any such- agreement shall administrative character, shall be subject to not impose obligations on the Member in confirmation by the Conference. exchange matters generally more restrictive than those imposed by the Articles of Agree- 4. Members shall not, by exchange action, ment of the International Monetary Fund on frustrate the intent of the provisions of this members of the Fund. Section, nor, by trade action, the intent of the provisions of the Articles of of 8. A Member which is not a member of the Agreement the International Monetary Fund shall furnish International Monetary Fund. such information within the general scope of . If the Organization considers, at any time, Section 5 of Article VIII of the Articles of that exchange restrictions on payments and Agreement of the International Monetary Fund, transfers in connection with imports are bein- as the Organization may require in order to applied by a Member in a marii inconsistent carry out its functions under this Charter. with the exceptions provided in this Section 9. Subject to paragraph 4 of this Article, for quantitative restrictions, it shall, report nothing in this Section shall preclude thereon to the International Monetary Fund. (a) the use by a Member of exchange con- 6. Any Member of the Organization. which. is trots or exchange restrictions in accord- not a member of the International Monetary ance with the Articles of Agreement of Fund shall, within a time to be determined by the International Monetary Fund or the Organization after consultation with the with that Member's special exchange International Monetary l und, become a mem- agreement with the Organization, or ber of the Fund or, failing that, enter into a (b) the use by a Member of restrictions or special exchange agreement with the Organiza- controls on imports or exports, the sole tion. A Member of the Organization which effect of which, additional to the effects ceases to be a member of the International permitted under Articles 20, 21, 22 Monetary Fund shall forthwith enter into a and 23, is to make effective such ex- special exchange agreement with the Organiza- change controls or exchange restrictions.

SECTION C. - SUBSIDIES Article 25. dization on the quantity of thc- affected product or products imported into or exported from Subsidies in General. the territory of the Member and of the circumstances making the subsidization necessary. If any Member grants or maintains any In any case in which it is determined that subsidy, including any form of income or price serious prejudice to the interest of any other support, which operates directly or indirectly Member is caused or threatened by any such to increase exports of any product from, or to subsidization, the Member granting the subsidy reduce imports of any product into, its terri- shall, upon request, discuss with the other tory, the Member shall notify the Organization Member or Members concerned, or with the in writing of the extent and nature of the sub- Organization, the possibility of limiting the sidization, of the estimated effect of the subsi- subsidization.

of the lnternational Monetary Fund, required payment Paragraph 4. to be received for its exports in its own currency or in the currency of one or more members of the International The word "frustrate" is intended to indicate, for Monetary Fund would not thereby be deemed to be example, that infringements by exchange action of the offending against Article 20 or Article 22. Another letter of any Article of this Charter shallnot be regarded example would be that of a Member which specified on an as offending against that Article if, in practice, there is no import licence the country from which the goods right appreciable departure from the intent of the Article. be imported for the purpose not of introducing any Thus a Member which, as part of its exchange control, additional element of discrimination in its import operated in accordance with the Articles of Agreement licences but of enforcing permissible exchange controls. - 27 - Article 26. Article 27. Additional Provisions on Export Subsidies. Special Treatment oj Primary Commodities. I. A system for the stabilization of the I. No Member shall grant, directly or in- domestic price or of the return to domestic directly, any subsidy on the exportation of producers of a primary commodity, inde- any product, or establish or maintain any other pendently of the movements of export prices, system, which subsidy or system results in the which results at times in the sale of the pro- sale of such product for export at a price lower duct for export at a price lower than the com- than the comparable price charged for the like parable price charged for like like product to product to buyers in the domestic market, due buyers in the domestic market, shall bc con- allowance being made for differences in the sidered not to involve a subsidy on exporta- conditions and terms of sale, for differences in tion within the rneaning of paragraph I of taxation, and for other differences affecting Article 26, if it is determined: price compariability. (a) that the system has also resulted in the sale of the product for export at a price 2. Notwithstanding the provisions of para- higher than the comparable price charged graph I of this Article a Member may exempt for the like product to buyers in the exported products from duties or taxes imposed. domestic market, in respect of like products when consumed and domestically, or may remit such duties or (b) thta the system is so operated, either taxes which have accrued. The use of the because of the effective regulation of proceeds of such duties or taxes to make pay- production or otherwise, as not to ments to domestic producers, however, shall stimulate exports unduly or otherwise be considered as a case under Article 25 except seriously prejudice the interests of other in so far as such payments subsidize exporta- Members. tion, in the sense of paragraph I of this Article, by more than the amount of the duties or 2. In any case of subsidization of a primary taxes remitted or not imposed, in which case commodity, if a Member considers that its the provisions of paragraph i of this Article interests are seriously prejudiced by the sub- shall apply to such excess payments. sidy or if the Member granting the subsidy considers itself unable to comply with the pro- 3. Members shall give effect to the provisions vision of paragraph 3 of Article 26 within the of paragraph i of this Article at the earliest time limit laid down therein, the difficulty may practicable date, but in any event not later be deemed to be a special difficulty under Chap- than two years from the day on which this ter VI, and in that event the procedure laid Charter enters into force. If any Member con- down in that Chapter shall be followed. siders itself unable to do so in respect of any 3. If the measures provided for in Chapter VI specified product or products, it shall, at least have not succecded, or do not promise to three months before the expiration of such succeed, within a reasonable period of time, period, give notice in writing to the Organiza- either because no agreement has been reached tion, requesting a specific extension of the or because the agreement is terminated, any period. Such notice shall be accompanied by Member adversely affected may apply for a complete analysis of the system in question exemption from the requirements of paragraphs and the effects justifying it. It shall then be I and 3 of Article 26 in respect of that commo- determined whether the extension requested dity. If it is determined that the circumstances should be made. described in Article 59 apply to the commodity concerned and that the subsidization will not 4. Notwithstanding the provisions of para- be so operated as to stimulate exports unduly graph I of this Article, any Member may sub- or otherwise seriously prejudice the interests of sidize the exports of any product to the extent other Members, the Organization shall grant and for such time as may be necessary to such exemption for such period and within offset a subsidy granted by a non-Member such limits as may be determined. affecting the Member's exports of the product. However, the Member shall, upon the request of the Organization or of any other Member Article 28. which considers that its interests are adversely affected by such action, consult with that Undertaking regarding Stimulation of Exports. Member or with the Organization with a view Notwithstanding the provisions of para- to reaching a satisfactory adjustment of the graphs I, 2 and 3 of Article 26 and of para- matter. graph 3 of Article 27, no Member shall grant

Article 26. Article 27, paragraph 3. The Cuban Delegation reserved its position. The United States Delegation reservedits position on paragraph , of Article 27 and on Article25. any subsidy on the exportation of any pro- promptly with the other Member or with the duct which has the effect of acquiring for that Organization regarding the need for an adjust- Member a share of world trade in that pro- ment of the base period, selected or for the duct in excess of the share which it had during re-appraisal of the special factors involved. a previous representative period, account being taken insofar as practicable of any special factors which may have affected or may be Article 29. affecting the trade in that product. The selection of a representative period for any Procedure. product and the appraisal of any special factors affecting the trade in the product shall be made Any determination provided for in, or appro- initially by the Member granting the subsidy ; priate to the operation of, this Section shall be Provided that such Member shall , upon the made through the organizationby consulta- request of any other Member having an import- tion and agreement among the Members ant interest in the trade in that product, or substantially interested in the product con- upon the request of the Organization, consult cerned.

SECTION D. - STATETRADING

Article 30. (c) No Member shall prevent any enterprise (whether or not an enterprise described Non-discriminatory Treatment. in sub-parargrap (a) of this paragraph) under its jurisdiction from acting in accordance with I. (a) Each Member undertakes that if it the principles of sub-paragraphs (a) and (b) of establishes or maintains a State enterprise, this paragraph. wherever located, or grants to any enterprise, 2. The provisions of paragraph I of this formally or in effect, exclusive or special pri- Article shall not apply to imports of products vileges, such enterprise shall, in its purchases for immediate or ulltimate consumption in or sales involving either imports or exports, act governmental use and not otherwise for re- in a manner consistent with the general prin- sale or for use in the production of goods for ciples of non-discriminatory treatment applied. sale. With respect to such imports, the in this Charter to governmental measures Members shall accord to the trade of the other affecting imports or exports by private traders. Members fair and equitable treatment. (b) The provisions cf sub-paragraph (a) of this paragraph shall be understood, to require Article 31. that such enterprises shall, leaving due regard to the other provisions of this Charter, make Expansion of Trade. any such purchases or sales solely in accordance with commercial considerations, including i. If any Member establishes, maintains or prices, quality, availability, marketability, authorizes, formally or in effect, a monopoly transportation and other conditions of purchase cf the importation or exportation of any pro- or sale, and shall afford the enterprises of the duct, such Member shall, upon the request of other Members adequate opportunity, in accord- any mother Membrer or Members having a sub- ance with customary business practice, to stantial interest in trade with it in the product compete for participation in such purchases or concerned, negotiate withl such Member or sales. Members in the manner provided for under

Article 30. *Sub-paragraph I (a). Governmental measures imposed to ensure standards Paragraph I. of quality and efficiency in the execution of external The operations of Marketing Boards, which are trade, or privileges granted for the exploitation of national established by Members and are engaged in purchasing natural resources but which do not empower the govern- or selling, are subject to the provisions of sub-para- ment to exercise control over the trading activities of the graphs (a) -and (b). enterprise in question, do not constitute exclusive or special privileges". The Belgian Delegation reserved its The activities of Marketing Boards which are estab- position on this note. lished by Members and which do not purchase or sell but lay down regulations covering private trace are governed Sub-paragraph i (b). by the relevant Articles of this Charter. A country re-eiving a -tied loan' is free to take this into The charging by a State enterprise of different prices loan account as a 'commercial consideration'' when for its sales of a product in different markets is not preclu- purchasing requirements abroad. ded by the provisions of this Article, provided that such Paragraph 2. different prices are charged for commercial reasons. to meet conditions of supply and demand in export markets. The term "goods" is limited to products as understood in commercial practice, and is not intended to include the purchase or sale of services. - 29 -

Article I7 in respect of tariffs, and subject to import monopoly shall make public or notify all the provisions of this Charter with respect the Organization of the maximum import duty to such tariff negotiations, with the object of which it wiil apply in respect of the product achieving: concerned. (o) in the case of an export monopoly, 4. The price charged by the import monopoly arrangements designed to limit or reduce for theimported product in the home market any protection that might be afforded shall not exceed the landed cost plus the maxi- through the operation of the monopoly mum import duty negotiated under paragraph to domestic users of the monopolized 2, of this Article or made public or notified to product or designed to assure exports of the Organization under paragraph 3 of this the monopolized product in adequate Article, after due allowance for internal taxes, quantities at reasonable prices; or transportation, distribution and other expenses (b) in the case of an import monopoly, incident to the purchase, sale or further pro- arrangements designed to limit or reduce cessing, and for a reasonable margin of profit; any protection tihat might be afforded Provided that regard may be had to average through the operation of the monopoly landed costs and selling prices over recent to domestic producers of the monopolized periods; and Provided further that, where the product, or designed to prevent any product concerned is a primary product and the limitation of imports to an extent subject of a domestic price stabilization inconsistent with the provisions of this arrangement, provision may be made for Charter. adjustment to take account of wide fluctuations or variations in world prices subject, 2. In order to satisfy the requirements of where a maximum duty has been negotiated, sub-paragraph i (b) of this Article, the Member to agreement between the countries parties to maintaining a monopoly shall negotiate tue negotiation. (ci) for the establishment of the maximum import duty that may be 5. With regard to any product to which the imposed in provisions of this Article apply the monopoly respect of the product concerned; or shall, wherever this principle can be effectively (b) for any other mutually satisfactory applied and subject to the other provisions of arrangement consistent with. the provi- this Charter, import and offer for sale such sions of this Charter if it is evident to quantities of the product as will be sufficient the negotiating parties that to negotiate to satisfy the full domestic demand for the a maximum import duty under sub- imported product, account beig taken of any paragraph (a) of this paragraph is rationing to consumers of the imported and impracticable or would be ineffective for like domestic product which may be in force the achievement of the objectives of at that time. paragraph I of this Article. 6. In applying the provisions of this Article, Any Member entering into negotiations under due regard shall be had for the fact that some sut-paragraph (b) of this paragraph shall afford monooplies are established and operated mainly to other interested Members an opportunity for for social, cultural, humanitarian or revenue consultation in respect of the proposed purposes. arrangement. 7. This Article shall not limit the use by 3. In any case in which a maximum import Members of any form of assistance to domestic duty is not negotiated under paragraph 2 (a) of producers permitted by other provisions of this Article, the Member maintaining the this Charter.

Article 31. quantitative regulation of their foreign trade. In the opinion of the The Preparatory Committee deleted Article 33, as Preparatory Committee the present text given in the Report of the First Session. of Article 21, together with the provision for export In revising the text of Article 32 (now Article 31), of controls in certain parts of tire Charter, e.g. in Article 3, the New York draft, the Preparatory Committee aimed fully meet the position of these: economies. at producing a text sufficiently flexible to permit any The Delegation of New Zealand reserved tire position appropriate negotiations with a Member which maintains of its Government on this question. a complete or substantially complete monopoly of its Paragraph 3. external trade. However, since no representative of such a country attended the sessions of the Preparatory If the maximum import duty is not bound by negotia- Committee, the question whether the present Article 31 tions according to sub-paragraph z (a) the Member is provides an adequate basis for participation by such a free to change at any time the declared maximum import country in the rights and obligations of tire Charter duty, provided such change is made public or notified to remains open for discussion at tire World Conference. the Organization. Arising out of a proposal by the Nev Zealand Delega- tion to make an addition to the previous text of Article 33, paragraph 4;. the Preparatory Committee considered the special With reference to the second proviso, the method and problems that migrt be created for Members which, as degree of adjustment to be permitted in the cases of a a result of their programmes of full empoyment, mair- primary product that is the subject of a domestic price tenance of high and rising levels of demand and econo- stabilization arrangement should normallyI be a matter mic development, find themselves faced. with a high level for agreement at the time of the negotiations under sub- of demand for imports, and in consequence maintain paragraph (a) of paragraph 2. 30 -

SECTION E. - GENERAL COMMERCIAL PROVISIONS Article 32. 6. Each Member shall accord to products which have been in transit through any other Freedom of Transit. Member country treatment no less favourable than that -which would have been accorded to such products had they been transported from I. Goods (including baggage), and also) vessels their place of origin to their destination with- and other means of transport, shall bedeemed out going through such other Member country. to be in transit across the territory of a Member, Any Member shall, however, be free to main- when the passage across such territory with tain its requirements of direct consignment or without trans-shipment, warehousing, break- existing, on the day of the signature of this ing bulk, or change in the mode of transport, is Charter, in respect of any goods in regard to only a portion of a complete journey beginning is a requisite and terminating beyond the frontier of the which such direct consignment the condition of eligibility for entry of the goods at Member across whose territory traffic preferential rates of duty or has relation to passes. Traffic of this nature is termed in this the Member's prescribed method of valuation Article " traffic in transit ". for duty purposes. 2. There shall be freedom of transit through 7. The provisions of this Article shall not each Member country via the routes most apply to the operation of aircraft in transit, but convenient for international transit for traffic shall. apply to air transit of goods (including in transit to or from other Member countries. baggage). No distinction shall be made which is based on the flag of vessels, the place of origin, departure, Article 33. entry, exit or destination, or on any circumstances relating to the ownership of goods, of Anti-dumping and Counterwailing Duties. vessels or of other means of transport. I. No anti-dumiping duty shall be levied on any product of any Member country imported 3. Any Member may require that traffic in into any other Member country in excess of transit through its territory be entered at the an amount equal to the margin of dumping proper customs house, but, accept in cases of under which such product is being imported. failure to comply with applicable customs laws For the purposes ofthis Article, the margin and regulations, such traffic coming from or of dumping shall be understood to mean the going to other Member countries shall not. be amount by which the price of the product subject to any unnecessary delays or restric- exported from one country to another tions and shall be exempt from customs duties (a) is less than the comparable price, in the and from all transit duties or other charges ordinary course of trade, for the like imposed in respect of transit, except charges product when destined for consumption for transportation or those commensurate with administrative expenses entailed by transit in the exporting country, or, or with the cost of services rendered. (b) in the absence of such domestic price, is less than either 4. AlI charges and regulations imposed by (i) the highest comparable price for Members on traffic in transit to or from other the like product for export to any Member countries shall; be reasonable, having third country in the ordinary course regard to the conditions of the traffic. of trade, or (ii) the cost of production of the product 5. With respect to all charges, regulations in the country of origin plus a and formalities in connection with transit, reasonable addition for selling cost each Member shall accord to traffic ir -ransit and profit. to or from any other Member country treat- Due allowance shall be male in each case for ment no less favourable than the treatment differences in conditions and term; of sale, for accorded to traffic in transit to or from any differences in taxation, and for other differences third country. affecting price comparability.

Article 32. Article 33. The Chilean Delegation maintained for the the being. The Delegations of Cuba and Lebanon would have the view that Article 3: should be confined to goods only. preferred to introduce the Article by an express state- in which case the words -and also vessels and other means ment of condemnation of dumping. of transport' in paragraph I should be deleted, and in consequence reserved its position. Hidden dumping by associated houses (that is. the Paragraph 5. sale by the importers at a price below that corresponding With regard to tr.- .;port charges, the principle of to the price invoiced by the exporter with which the paragraph 5 refers to like products being transported on importer is associated. and also below the price in the the same route under like conditions. exporting country) constitutes a form of price dumping. - 3I - . No courntervailing duty shall be Ievied on It is recognized that the importation of pro- any product of any Member country imported ducts exported under a stabilization system into another Member country in excess of an doeterrnird to liavc confornied to the conditions amount equal to the estimated bounty or prescridcd in Article 27 wvould ne1t rcstllt il' subsidy determined to have beengranted, m;aturial iujjury under the ternis of titis para- directly or indirectly on the manufacture, pro- graph. duction or export of such product in the country of origin or exportation, including any special <). No zîtcastires other tlhani aznti-dumiping or subsidy to the transportation of a particular counturvailing dluties shall be applied by any product. The term"countervailing, duty" Mcuiiber ini respect of any product of any other shall be understood to mean a special duty Member country for the purpose of offsetting levied for the purpose of offsetting any bounty dumping or subsidization. or subsidy bestowed, directly or indirectly, upon the manufacture, production or exportation of any merchandise. Article 34. 3. No product of any Member country Vaitazo1zn for Cusionis IPurposCs. imported into any other Member country shall be subject to anti-dumping, or countervailing i. 'J`he Meimbers shall. work toward the stand- duly by reason of the exemption of such pro- arclization, as far as practicablc, of definitions duct from duties or taxes borne by the like cf value and of procedures for dcterminiing product when destined for consumption in the the value of products subject to customs duties country of origin or exportation> or by reason or other charges or restrictions based upon of the refund of such duties or taxes. or regulated ini any manner by value. With a view to furthering such co-operation, the 4. No product of any Member country Organization may study and recommend to imported illto any other Member counitry Members such bases and methods for determin- shall be subject to both anti-dumiping and ing value for customs purposes as would appear countervailing duties to compensate for the best suited to the needs of commerce and most same situation of dumping or export subsidiza- capable of general adoption. tion. 2. The Members recognize the validity of 5. No Meraber shall levy any anti-clumping the general principles of valuation set forth in or countervailing duty on the importation of paragraphs 3, 4 and 5 of this Article, and they any product of another Member country unless undertake to give effect to such princples, in it determines that the effect of the dumping respect of all products subject to duties or or subsidization, as the case may be, is such other charges or restrictions on importation as to cause or threaten material injury te an and exportation based upon or regulated in established dornestic industry, or is sucri as to any manner by value, at the earliest practicable prevent or materially retard the establishment date. Moreover, they shall, upon a request by of a doomestic industry. The Organization may another Member, review the operation of any waive the requirements of this paragraphs so of their laws or regulations relating to value for as to permit a Member to levy an anti-dumping customs purposes in the light of these principles. duty or countervailing duty on the importation 'flie Organization may request from Members of any product for the purpose of offsetting reports ont steps taken by them in pursuance dumping or subsidization which causes or of the provisions of this Article. threatens material injury to an industry in another Member country exporting the product 3. (ci) The value for customs purposes of concernred to the importin- Meinber country. imported merchandise should be based on the

Paragraph 2. .paragraph 6. .Multiple currency practices may in certain circumstan- The addition of this paragraph was opposed by the ces constitute a subsidy to exports which can be met by Dulegations of China and India. countervailing duties under paragraph 2 or may constitute The obligations set forth in paragraph 6 are, as in the a form of dumping by means of a partial depreciation of case of ail othlr obligations under Chapter IV. sutbjuci a country's currency which can be met by action under to hlie provisionsof Article .Io. paragraph i of this Article. By multiple currency practices- is meant practices by governments or sanc- tioned by governments. Article 34. Paragraph 5. 2. The Delegations of Belgium-Luxemburg, Czecho- Paa'tGraph slovakia, France and the Netherlands expressed the fear The P>reparatory Committec considered the desirability that abuses might be committed under cover of the provi- of replacing the words -at the cailiest practicable date" sions of paragraphs 5 regarding the threat of injury. of by a definite date or, alternatively, by a provision fora which a State might take advantage on the pretext that specified limited period to bu fixed later. TJhe Committee it intended to establish some new domestic industry in appreciated that it would not be possihlc for all Members the more or less distant future. It is considered, how- to give defect to these principles by a fixed time, but it ever, that, if such abuses were committed, the general %vas nevertheless understood that a majority of the provisions of the Charter would be adequate to deal Members xvould give effect to them at thc timnu the with them. Charter enters into force. 32 -

actual value of tle imported merchandise on Members of any foreign currency in respect of which duty is assessed or of like merchandise, wlîicli înîîl tfple rates of uxcliuîgîg are mlaîin- and should not be based on the value (if m1erl- taiined coinsistently withl tfli Articles of Agree- chandise of national origi n or on arbiti ;iry or mnic f of tlic international ïIMonftary ;IIÙu. fictitious values. MAinMeiber inay apply sUCli riles iii r(esp)ect of sîucli foreign curreîîcies for tlie purposes of (bi) `Actual value should be the prite at :;T,-_l:3ip of fllis Art icle as an alternative which at a time and place determined by the. to the USe' of P.Lr vtaliis. Unltil such rules are legislation of the country of importation and adopted by the Organization, any Member may in the ordinary course of trade, such or like employ in respect of any sucg foreign currency merchandise is sold or offered for sale under rules of conversion for the purposes of paragraph fully competitive conditions. To the extent 3 of this Article which aredesigned to reflect to which te price of such or like merchandise effectively the value of such foreign currency is governed by the quantity in a particular in commercial transactions. transaction, the price to be considered should uniformly be related to either (i) comparable (ci) Nothing in this paragraphs shall be quantities, or (ii) quantities not less favourable construed to require any Member to alter the to importers than those in which the greater method of converting, currencies for customs volume of the nierchandidse is soll il. lhe trade purposes, wiiich is applicable iii its territory between the coUii tries of exportation and in)por- on tlhe day of the signature of tlhis Charter, tatfion. if slucli alteration would have the effect of illcreasing generally flic aironunts of (luty (c) Wheni the actual value is ulot asccrtain- payabl.e. able in accordance witl subl)-paragraph (b) of this paragraph, tlie value for custonis purposes G. The bases and methods for determining shoiild be based on tlhe nearest ascertainablv the value of products subject to duties or other equivaleiit of stcli value. charges or restrictions based upon or regulated ili .an manner by value should be stable and 4. Thle value for cuistorns purposes of anY should be given sufficient publicity to enable imported product should not inclicle thte ainount trailers to estimate, with a reasonable degree of any internal tax applicable within tlie countrY of certainty, the value for customs purposes. of origin or export, froni which the imported product lias been exempted or lias been or will be relieved by means of refund. Article 35. 5. (ai) Except as otherwise provided in this F0rmalities connected with Importation paragraph, where it is necessary for the purpose and Exportation. of paragraplh 3 for a Memlbeur to convert into its own currency a price expressed in the i. The Members recognize tliat fees and currency of another country, the conversion charges, other than duties, imposed by govern- rate of ecxchange to be used shall be based on mental authorities on or in connection with the par values' of the currencies involved as importation or exportation should be limited established pursuant to the Articles of Agree- in amount to the approximate cost of services ment of the International Monetary Fund or rendered and should not represent an indirect by special exchange agreenments entered into protection to domestic products or a taxation -pursuant to Article 24 of this Chapter. of imports or exports for fiscal purposes. The Members also recognize the need for reducing -- (b) Where no such. par value has been the nmnnber and diversity of such fees and established, the conversion rate shall. reflect charges, for minimizing thie incidencC and effectively the current value of such currency complexity of import anîd export formalities, in commercial transactions. and for decreasing and simplifying import and export documentation requirements. (c) The Organization, in agreement with the International Monetary Fund, shall for- 2. The Members shall take action in accord- mulate rules governing the conversion by ance wvith the principles and objectives of

Paragraph 3. the buyer and seller are not inclepenident (À eaclh other and price is not the sole consideration. It would be in conformity with Article 34 to presume The prescribed standar" uf -fully competitive condi- that 'actual value" may be represented by the invoice tions' permits Meinbers to exclude from consideration price, plus any non-included charges for legitimate cost. distributcrs' prices which involve special discounts limited which are proper elements of -actual value" and plus to exclusive agents. any abnormal discount or other reduction from the Thc wording of (a) and (b) permits a Mlember to assess ordinary competitive price. duty uniformly either (r) on the basis of a particular It would be in conform-ty with Articleh 34, 3 (b), for a exporter's prices of the importecd merchandise, or (2) on Member to construe the phrase "in the ordinary course the basis of the general price level of like merchandise. of trade", read in conjunction with -under fully compe- The Delegation of Chile reserved its position for the titive conditions', as excluding any transaction wherein time being. 33 - paragraph i of this :`Article at tic earlies'. 3. \Vhct v raIIîinistradîivelya pctîcable, practicable date. Moicover-, they shaHll, MLmhIt r- NîlmîI-d perillit rlquîru(ld markl f re(luest by> -;ii)tller Mleinber, îcview hlie optuîa- nigil t bu.. tlatixed at thc t ine o f illiportatioln. tionI of auv of their lawjs and rneulatiotis iii the li-lît of these prilnciples. 'l'le Org-anllizatioli -[. 'l'lie latws and ruspmlaLtions of Menmburs inay request froin Memibers reports on steps relatiltt'. to tLie llnarkilg olf ilnported products taken by tlhem iII pursuance of tlic provisions sliall be Sului as to perrmiit comAliance without of this paragraph. scriouslv dainmaging tlhe products, or mnaterially recdticiiig their value, or umireasonably increasing 3. The Organizationi may stldv ancl re- their cost. cominend to Meembers speci tic measlures for the simopliflication aid stantiardization of Custoims 5. The Mermbers agree to wvorl1 in co-operatiomi formalities and techniques and for the elimi- thlroughl the Organization toNvards the early nation of uninecesStaI'rv customs requireiinents. elimination of unnecessary markinig require- menmts. The Organization may study and 4. No Member shall impose substantial recomrîniend to MIembers nmeasures clirected lo penalties for miniiior breaclhes of customs re-u- this end, including the adoption of schedules lations or procedural reluirenmenits. Jii par- of general categories of products, in respect ticular, no penalty in respect of any omission of wvhicli marking recquirenments operate to or mistake in customs documentation xvhich restrict trade to an extent disproportionate to is easily rectifiable and obviously made without any proper purpose to be served, and which fraudulent intent or gross neg-igence shall be shall not in aniy case be required to be marlked greater than necessary to serve merely as a to inldicate their origin. xvarnirig. 6. As a general rule no special duty or 5. The provisions of this Article shall extend penalty should be imposed by any Member for to fees, charges, formalities and requirements failure to comply with Inmarking requirements imposed by governincrital autlioritics in con- prior to importation unless corrective mnarking nection with importation and exportation, is unreasonably delayed or cleceptive marks includin; ;:hose relating to: have been atfixed or the required marking LIas bleen intentionally omitted. (a) consular transactions, sucli as consular invoices and certificates; 7. The Members shall co-operate %vith each (b) quantitative restrictions; other and through the Org.anizationl witli a view (c) licensing; to preventing the use of tracle names in such (d) exchange control: manniier as toimisrepresenit the truc origin of a (e) statistical services; product, to the detriment of the distinctive (J) documents, documentation and certi- regional or geographical nanmes of products of fication; a Member country wvhicih are protected by the (g) analysis and inspection; and le-Tislation of such couritry. Each Memnber (h) quarantine, sanitation and fumigation. shall accord full and synmpathetic consideration to such requests or representations as may be made by any other Memniber re-arding the Article 36. application of the undertaking set forth in the precedin- sentel1ce to names of products which .llarks of Origiin. have been communicated to it bv the other Member. The Orgailization may recommend i. The Members recognize that in adopting a conference of interested Meembers on this and implementing laws and regulations relating subject. to marks of origin, the difficulties and incon- veniences which such measures may cause to the commerce and industry of exporting Article 37. countries should be reduced to a minimum. Publication and Admninisiratio-n of Trade 2. Each Meember shalI accord to the products Regulations. of each other Member country treatment with regard to marking requirements no less favour- i. Laws, regulations, judicial decisions and able than the treatment accorded to like administrative rulings of general application products of any third country. made effective by any Member, pertaining to

ArtIcle 35. International Monetary Fund, the provisions of para- Paragraph 5. graph z fully ,safeguard its position since tnat paragraph merely requires that the fecs be eliminated at the earliest While Article 35 does not cover the use of multiple practicable d; ate. rates of exchange as such, paragraphs i and 5 condemn the use of exchange taxes or fees as a device for imple- Article 36. Inenting multiple currency practices; if, however, a Paragraph 7 Member is using multiple currency exchange fees for balance of payments reasons wvith the approval of the Thi Deleganation of Chile reserved its position. 3.4 -- tlh classilfcationi or the evaluation of products filly or formally ' independent of the agencies for custolls purposes, or to rates of dutv, taxes entrusted Vitli adilinistrative enforcninent. or othler charges, or to requirenien ts, retricit iOtlS Any emIembereînploying such Jocedures sliall, or l)rohibitions on iînports or exports or on the upon ruclJest, furnisli the Organization with transfer of payments therefor, or affecting their mil in [forlmatiOnl tlClerOI1 ill order that the sale, distribution, transportation, instura:i-e, Organization niay deterrniic whe Lher sucli warehousin-, inspection, exhibition, procerrsing, procedures conforni to tlie requirements of this mixihig or other use, shall be publishled proin-Ptly sUb-paragraphl and. those of subl-paragraph (b). in such a manner as to enable governinents and traders to become acquain ted withl them. Agreements in force between the government or a governmental ageiicy of any Meniber country and the government or governinental agency of any other country affecting inter- Article 38. national trade policy shall also be pLlblisled. Copies of suclh laws, regulations, decisions, InfJoyratio'n, Sitaistics a nd Trade Tcrninoog;.. rulings and agreements shall be comniiiunicated prornptly to the Organization. This para-rapIi shall not require any Mernber to disclose i. The Members shlall conmrnunicate to the confidential in formation which Nvould impede Orgarîization, or to such agency as may bu( law enforcement, or otheiwrise be contrary to designatted for the purpose by the Organization, the public interest or would pre. Jice the as prornptly and in as muc1 detail as is reason- legitimate commercial interests of particular ably practicable: enterprises, public or private. (a) statistics of their external trade in gooris 2. No measure of general application taken (imports, exports and, vhere .applicable, by any .Member effecting an advance in a rate re-exports, transit and trans-shipmeint of duty or other charge on imports under an and goods in warehouse or in bond); established and uniform practice or imposing (b) statistics of governmental revenue from a new or more burdensome ruquirement, import and export duties and other restriction or prohibition on imports, or on the Laxes on goods moving in international transfer of payments therefor, shall be enforced trade ancd, in so far as readily ascertain- before such measure has been officially able, of subsidy payrnerts affecting such published. trade. 3. (a) Each Member shall administer in a 2. So far as possible, the statistics referred uniform, impartial and reasonable manner all to in paragraph i of this Article shall bc related its laws, regulations, decisions anld rulings of lO tariff classifications and shall be in such form the kind described in paragraph i of this Article. as to reveal the operation of any restrictions on importation or exportation which alre based on (b) Each Member shall maintain, or or regulated in any manner by quantity or institute as soon as practicable, judicial, arbitral value or amounts of exchange made available. or administrative tribunals or procedures for the purpose, inter alia, of the prompt review 3. 1`he Members shall publish regularly and and correction of administrative e action relating as promptly as possible the statistics referred to customs niatters. Such tribunals or pro- to iii i of thîis cedures shall be independent of the agencies paragraph ArLicle. entrusted wvith administrative enforcement and their decisions shall be implemented by and 4. The Members shall give careful consider- shall govern the practice of such agencies unless ation to any recommendations which the an appeal is lodged with a court or tribunal Organization may make to them with a view of superior jurisdiction within the time pre- to improving the statistical information fur- scribed for appeals to be lodged by importers; nished under paragraph i of this Article. Provided that the central administration of such agency may take steps to obtain a review 5. The Members shalI make available to the of the matter in another proceeding if there is Organization, at its request and in so far as is good cause to believe that the decision is reasonably practicable, suclh other statistical inconsistent with established principles of law information as the Organization may deem or the actual facts. necessarv to enable it to fulfil its functions, provided that such information is not being (c) The provisions of sub-paragraph (b) furnished to other inter-governmental organiza- of this paragraph shall not require the elimi- tions from which the Organization can obtain nation or substitution of procedures in force the required information. in a Member country on the day of the signature of this Charter which in fact provide for an 6. The Organization shall act as a centre for objective impartial review of administrative the collection, exchange and publication of action even though such procedures are not statistical information of the kind referred to 35 - i n paragraph of this Article The Organiza- in the official document s and statistics of tion, in collaboration with the Economic and Members relating thereto, and inay recomnmend Social Council of the United Nations, and with the general acceptance by Membersof such any other organization (deemed appropriate, standards, nomeneîclat urges, terins aîlîd forms. may engagein studies with a view to improving the methods of collectiong, analyzing and publishing economIic state istics and may proomote Article 39. the international comn)parability of sucb sta:is- Boyco/is. tics, including tue possible international adop- tiolI of standard tariff andi commodity classi- No \leiinber shall encourage, Support or parti- tications. cipate in boycotts or other caîupaigns wliCch are tlesigined to dliscourage, directly or indirectly, 7. The Orgaîîization, in co-operation witil tue ihe consutliption Nvithin itS teritory Of products other organizatioins referred to in paragraph 6 of may specific Member country or countries on of this Article, mav also study the question grounds of origin, or the sale of products for of adopting standards, nomenclatures, terms coûnSUnptioû. withiin other Member countries on and forms to be used in international trade and grounds of destination.

SECTION F. - SPECIAL PROVISIONS Article 40. interest as exporters of the product concerned an opportunity to consult with it in respect Emergency Action on Imports of Partlicular ut tue proposed action. \\Vh(e1n such notice is Products. given iii relation to a concession witbi respect to a I)refererce, the notice shahllname the i. (a) If, as a result of unforeseen develop- Member which has requested the action. in ments and of tile effect of the obligations critical circumstances, where delay would incurred bly aMcinber under or pursuant to cause damage, which it would be difficult to this' Chapter, including tariff concessions, .any repair, such action may be taken provisionally product is be ing imported into the territory without prior consultation, on the condition of that Member in such increased quantities that consultation shall be effected immediately and under such conditions as to cause or threat- after taking such action. en serious injury to domestic producers in that territory of like or directly competitive pro- 3. (al) If agreement among the interested ducts, the Member shâll be force, in respect of Members with respect to the action is not such product, and to the extent and for such reached, the Member which proposes to take time as may b:necessaryy to prevent or remedy or continue the action shall, nevertheless, be such injury, to suspend the obligation in whole free to do so, and if such action is taken or or in part or to withdraw or modify the con- continued, the affected Members shall then be cession. force, not later than ninety days after such. action (b) If any product, which is the subject of a is taken, to suspend, upon the expiration of thirty days from the day on which written concession with respect to a preference, is being imported into the territory of a Member in the notice of such suspension is received by the circumstances set forth in sub-paragraph (a) Organization, the application to the trade of such case of this paragraphs so as to cause or threaten the Member taking action, or, in the i serious injury to domestic producers of like or envisaged in paragraphs (b) of this Article to directly competitive products in the territory the trade of the Member requesting such action, of a -Member which receives or received such of such substantially equivalent obliations or preference, the importing Member shall be free, concessions under this Chapter the suspension of if that other -Merber so requests, to suspend which the Organization docs not disapprove. the relevant obligation in whole or in part or (b) Notwithstanding the provisions of sub- to withdraw or modify the concession in respect paragraph (a) of this paragraph, where action of the product, to the extent and for such time is taken under paragraph 2 of this Article as may be necessary to prevent or rernedy such ivithout prior consultation and causes or injury. threatens serious injury in the territory of a Member to the domestic producers of products 2. Before any Member shall take action affected by the action, that Member shall, pursuant to the provisions of paragraph i of where delay would cause damage difficult to this Article, it shall give notice in writing to repair, be free to suspend, upon the taking of the Organization as far in advance as may be the action and throughout the period of consul- practicable and shall afford the Organization tation, such obligations or concessions as may and those Members having a substantial be necessary to prevent or remedy the injury.

Article 39. The Delegation of Lebanon reserved its position. - 36 -

-j. Nothing in this Article shall be construed organizationn shall not on 1 thewhole be (a) to require any Member, in connection with higher or more stringent than the average the withdrawal or modiofication by such Member level of the duties and regulations of of any concession negotiatedunder Article 17, comnniercu or niargiins of preference appli- to consult with or obtain the agreement of cable in the constituent territories prior Members other than those Members which are to the formiation of such unlliO or the parties to the General Agreement on Tariffs adoption of such agreement, and Pro- and Trade, or (b) to authorize any such. other vided further tlîat any such interini Members, not parties to that Agreement, to agreement shall include a delinite plan withdraw from or suspend obligations under and schedule for thte attaiinment of this Charter by reason of the withdrawal or such a custonls union xvithiii a reasonable modification of such concession. lengthi of time. 3. (.7) Any Member proposing, to enter into Article 41. a customs union shall consult with the Organization and shall make available to it Consultation. such information regarding the proposed union as will enable the Organization to make such Each Member shall accord sympathetic con- reports and recommendations to Members as it sideration to, and shall afford adequate oppor- may deem appropriate. tunitv for consultation regarding, such representations as may be made by any other (b) No Member shall institute or maintain Member with respect to the operation of cus- any interim agreement under the provisions of toms regulations and form-alities, anti-dumping paragraph 2 (b) of this Article if, after a study and countervailing duties, quantitative and of the plan and schedule proposed in such exchange regulations, subsidies, state-tradirnb agreement, the Organization finds that such operations, sanitary laws and regulations for agreement is not likely to result in such a the protection of human, animal or plant life customs union within a reasonable length of or health, and generally all matters affecting time. thc operation of this Chapter. (c) The plan or schedule shall not be substantially altered without consultation with the Organization. Article 42. 4. For the purpose of this, Article a customs Territorial Application of Chapter IV territory shall be understood to mean any - Fronttier Trafic - Customs Unions. territory with respect to which separate tariffs or other regulations of commerce are maintained i. The rights and obligations arising under for a substantial part of the trade of such ter- this Chapter shall be deemed to be in force ritory with other territories. A customs union between each and every territory which is a shall be understood to mean the substitution separate customs territory and in respect of of a single customs territory for two or more which this Charter has been accepted by a customs territories, so that ahl tariffs and other Member in accordance xvith Article 99. restrictive regulations of commerce as between the territories of members of the union are 2. The provisions of this Chapter shall not substantially eliminated and substantially the be construed to prevent: same tariffs and other regulations of commerce (a) advantages accorded by any Member to are applied by each of the members of the union adjacent countries in order to facilitate to the trade of territories not included in the frontier traffic; or union. (b) the formation of a customs union or the adoption of an interim agreement Article 43. necessary for the attainment of a customs union; Provided that the duties and other General Exceptions to Chapter IV. regulations of commerce imposed by, or any margins of preference maintainecd Subject to the requirement that such by, any such. union or agreement in measures are not applied in a manner which respect of trade xvith iMembers of the would constitute a means of arbitrary or

Article 42. Article 43. Paragraph 4 of the texx of the former Article 38 The Delegation of India maintained its suggestion that proposed by the New York Drafting Committee has a Member should be allowed temporarily to discriniinate been deleted since the subject dealt with therein is against the trade of another Member when this is the covered by the new Article 15 and by Article 74. only effective measure open to it to retaliate against The Delegation of Chile favoured its retention pending discrimination practised by that Member in matters the World Conference. outside the purview of the Organization, pending a settlement of the issue through the United Nations. - 37 - unjustifiable discrimination between countries tons shall not operate to increase where the same conditions prevail, or a dis- the exports of or the protection guised restriction on international trade, afforded, to such domestic industry, nothing in this Chapter shall be construed to aLd shall not depart from the pro- prevent the adoption or enforcement by any visions of this Chapter relating to Member of measures: non-discrimination. (a) necessary to protect public morals; Il. (a) Essential to the acquisition or dis- (b) necessary to protect human, animal tribution of products in general. or or plant life or health; local short supply; Provùild tliait anv such measures sha;hll be cousis- (c) relating to the importation or expor- tent with any inultilateral arraznge- tation of gold or silver; ments clirected to an e(juitable inter- (d) necessary to secure compliance with national dlistributioln of suîch pr-o- ' laws or regulations which are not ducts or, in the absence of such inconsistent with the provisions arrangements, with the principle of this Chapter, including those that all Members are entitled to an relating to customs enforcement, equitable share of the international the enforcement of monopoles suplply of such products; operated under Section D of this (b) essential to the control of prices by Chapter, the protection of patents, a Member country, undergoing short- trade marks and copyrights, and the ages subsequent to the war; prevention of deceptive practices; or (c) essential to the orderly liquidation (e) relating to the products of prison of temporary surpluses of stocks labour; owned or controlled. by the govern- (J) imposed for the protection of na- ment of any Member, or of industries tional treasures of artistic, historic developed in any Member country or archeological value; owing to the exigencies of the war (g) relating to the conservation of which it would be uneconomic to exhaustible natural resources if such maintain in normal conditions; Pro- measures are made effective in con- vided that such measures shall not junction with restrictions on do- be instituted by any Member, ex- mestic production or consumption; cept after consultation with other (h) undertaken in pursuance of obli- interested Members with a view gations under inter-governmental to appropriate international action. commodity agreements concluded .Measures instituted or maintained under in accordance with the provisions paragraph II of this Article which are incon- of Chapter VI; or sistent with the other provisions of this Chapter (i) involving restrictions on exports of shall. be removed as soon as thie conditions domestic materials necessary to g-iving rise to them have ceased, and in any assure essential quantities of such event not later than I January I95I; Provided materials to a domestic processing that this period may, with the concurrence of industry during periods when the the Organization, be extended in respect of domestic price of such materials the application of any particular measure to is held below the world price as any particular product by any particular part of a governmental stabilization Member for such further periods as the Organi- plan; Provided that such restric- zation may specify.

Paragraph I. Paragraph IL. The Delegation of Norway re-btated its view: that the l'he Norwvegian Dlegation, referring to sul)-paragraph taxation and the price policy of Nwrway's State liquor (b), statcd tlat provisions relating to pernmanent price and wine monzupolv wvas covered by sub-paragraphs (a) rngulation ought to be includlu ilu the Charter. and (b). Sub-paragrap/î I (g). The Australian Delegation reservt:d its position. -- 38 -

CHAPTER V RESTRICTIVE BUSINESS PRACTICES

Article 44. allocating customers, or fixing sales General Policy towards Restrictive Business quotas or purchase quotas; Practices. (c) discriminating against particular enter- i. Each Member shall. take appropriate prises; measures, individually or through the Orgaiiiza- (i) limiting production or fixing.production tion or in botlh ways, to prevent business quotas; practices affectinlg international trade (whetlher (e) l)reventing by agreement the develop- engaged in by private or public commercial ment or application of teclinology or enterprises) which restrain competition, liuit invention ulwether pateiited or uinlaten- access to markets, or foster nionopolistic ted; control, whenever such practices have hlarniful (J) extending the use of riglits under effects on the expansion of production or trade patents, trade marks or copyriglits and interfere with the achievenient of any of granted by any Mirluriber, to matters the other objectives set forth in Article I. whicli are cletermined by its systein of : \Vithout limiting the generalitv' of para- law not to be withlin the scope of snch grapli i of this Article, and in order that the grants, or to prouLlcts or conditions of Organization i may decide in a particular production, uise or sale which are simi- instance wvheither certain practices have or larly determined not to be the subjects are about to halve anv of the effects described of suclb grants; in paragraph i of this Article, the Menmbers (g) any si-nilar practices \vhicli the Organiza- agree that complaints regarding any of tlhe tion niav fron tMlle to timn. decide are practices listed in pnragraplh 3 of this Article restrictive business practices. shall be subject to investigation in accordance with the procedure regarding complaints pro- 4. In this Chapter the terni public coniîner- vicled in Articles 45 and 47, whenever cial enterprises'- reans (a) such a complaint is presented co the (a) trading agencies of governments, and Organization; and (b) enterprises rnainly or wlholly owned by (b) the practices are engaged in or are made public authority and over which there is effective by one or more private or effective control by public authority, public commercial enterprises or by a including control of engagement in a combination, agreement or other arrange- practice listed in paragraph 3 of tlhis ment between commercial enterprises, Article. whether bet\veen private commercial The term "private commercial enterprises' enterprises, betwIeen public commercial means all other commercial enterprises. enterprises, or between private arnd public commercial enterprises; and Article 45. (c) such commercial enterprises, individually Procedure wit/h respect to investigations und or collectively, possess effective-control Consultations. of trade between two or more countries in one or more products. i. The Organization shall arrange, if it considers such action to be justified on the 3. The practices referred to in paragraph 2 basis of information submitted by the Miembers of this Article are the following: concerned, for particular MAembers to take (a) fixing prices or terms, or conditions to part in a consultation requested by any affected be observed in dealing xvith third parties, Member which coinsiders that in any particular in the purchase, sale or lease of any instance a practice exists (whether engaged in product; by private or public commercial enterprises) xvhich has or is about to have the effect de- (b) excluding enterprises from any territorial scribed in paragrapli i of Article 44. market or field of business activity, allocating or dividing any territorial 2. A complaint may be presented in writing market or field of business activity, to the Organization by any affected Member

Article 44. The Norwegian Delegation reserved its final position. - 39 - on its own behalf or by any Member on behalf IO. As soon as possible after its proceedings of any affected person, enterprise or organiza- in respect of any ComplI)].Lilnt under this Article tion within that Member's jurisdiction; Prom.- have been provisionally or finally closecl, the ded that in the case of a complaint against a Organiz.Ltioll shall. prepare and publisli a report single public commercial. enterprise acting shoviîig fully the decisions reaclecd, t le reasons independently, stcli complaint mnay be pri-esen- therefore ailll any meaSLires recoiiîii-iieded to ted only by a Menmiber on its owil behalf ancd the Nleniiber-s concerned. 'J'le Organization only after the Meinber lias resorted to th2e pro- slilha not, if a MeImber so rcquests, disclose ceclure Utnder paragrapli i of tuis Article. confidential information furîîishled by that Mlenîber whicichî if disclosed woiild substantially 3. l'he Organization shall prescribe the claniage the legitimate business int, rests of a minimum information to be iiicluded in coin- conrllîercial. enterprise. plaints tLat particular practices exist whcicI have or are about to have l.ie effect described ir. "'bu Organization shall report to ail in paragraph i of Article 44. 'Tlle information Mlellll)eibs ancd inake public t he renmedial action shall. give substantial indication of the nature wluici has been taken by the Mlembers concerned anc hlarmIfll effects of the practices. In azy ptrticULlar case. 4. 'Thie Organiization shall consider each CoMplai nt present ted in accordance witih para- gra.pAi 2 of this Article. If the OrgarnizaLtioin Article 46. dlteims it appropriate it salill request Memlbers concerned to furnish supplementary infornia- Studies rela/img to Restrictive Basiness tion, for example, in format ion from comninircial. entreprises within their j jurisdiction. After Practices. reviewing the relevant information the Orga- nization shall decide whether an investigation i. The Organization is authorized is justified. (a) to conduct studies, either on its own. initiative or at the request of any 5. If the Organization decides that an inves- 1Member or of any organ of the United tigation is justified, it shall notify all Mileinbers Nations or of any other inter-govern- of the conmplairit, request any Memnber to fur- mental organization relating to nish. such additional information relevant to the complaint as the Organization may deeni (i) general aspects of restrictive busi- necessary, and shall. condLuct or aranage for ness practices affecting interna- hearings on the complaint. Any Membur, and tional trade; and any person, enterprise or organizations on (ii) conventions, laws and procedures whose behalf the coniplaint bas been made, as concerning, for example, incor- well as the commercial enterprises alleged to poration, company registration, in- have engaged iii the practice complained of, vestrnents, securities, prices, mark- shail be afforded reasonable opportunity to be ets, fair trade practices, trade marks, heard. copyrights, patents and the exchange and development of tech- 6. The Organization shall review ail informa- nology, insofar as they are relevant tion available and decide whether the practices to restrictive business practices in question have had, have or are about to have affecting international trade; and the effect described in paragraph i of Article 44. (iii) the registration of restrictive business agreements and other arrange- 7. The Organization shall notify ail Members ments affecting international trade; of its decision and the reasons therefor. and (b) to request information from i\Jembers 8. If the Organization. decides that in any in connection with such studies. particular case the practices complained of have had, have or are about to have the effect described in paragraph i of Article 44, it shall 2. The Organization is authorized request each Member concerned to take ever, possible remedial action, and may also re- (a) to make recommendations to Members commend to the Members concerned remedial concerning such conventions, laws and measures to be carried out in accordance with procedures as are relevant to their their respective laws and procedures. obligations under this Chapter; and (b) to arrange for conferences of Members 9. The Organization may request any Mem- to discuss any matters relating to ber concerned to report fully on the remedial restrictive business practices affecting action it has taken in any particular case. international trade. -4o-

Article 47. Article 48.

Obligations of Members. Sut'ppleknentary Enjorcemient A rrangemiens.

i. Members wvith acad other i. Each Mernber shall take ahi possible may co-operate measures by legislation or otherwvise to ensure, in prohibitive, preventive or other ineasures within its jurisdiction, t bat private andi public for the purpose of mak-iing more effective any by a duly authorized commercial enterlprises dco not engage -ii remedial order issued agency of of tlhe practices which. have the effect described in any ïMerrnber in furtiherance of this Chapter. paragraph i of Article ..4, ancl in addition it objectives shall assist the Organization in preventing these 2. Members participating in or inteilding te practices, such assistance to bc given in participaLte in such co-operative action shall accordance with the Memnber's system of law notify the OrgaLniz;ltioii. and economic organisation.

2. Each Member shall make adequate arrangements for presenting complaints, con- Article 49. ducting investigations, and preparing informa- I)omestic leasusres against Restrictive BJusiness tion and reports requested by the Organization. Practices. 3. Each Member shall furnish to the Or- ganization, as proiriptly and as fully as possible, No act or omission to act on the part of the such information as is requested by the Or- Organiizatiol slhall preclucde any MeInber from ganization for its consideration and investi- enforcing any national statute

Article 50. N'oveznber 1947. and orily alter ti:e results of that mecetiiig Nwere kîî1own would it bu posbiblet for the Norwvegian The Norwegian Delegation reserved its final position, Governinent to define its ilual attitude to this Article. in vie.v of the fact that the Intergovernmental Mlaritime The Frencli Delegation adthr:e to the reservation of the Consultative Commission would have a meeting in .NorNvegiaii Delegation. - 4I -- Organization, it shall be transferred to the Article 51. appropriate inter-governmental organization if one exists, wVith such observations as the Exce!ptions Io t/te Provisions of titis C/ha tlr. Organization inay wisli to make. If n1o sucl i. The obligations in this Chapter shall ilot iiiter-governimental organization exists, lIem- apply to: bers may ask tile Organization, under Article (a) inter-governirnental comnlodity agree- 69 (c). to rnakc recommendations for, and ments meeting the reqluirenments of proinote international agreement on, ineasures and designed to remedy the particular situation so Chapter VI; far as it comes withiii the scope of this Charter. (b) any bilateral inter-governinental agrue- ment relating to the puîrclîase or sa1le ol a comnnodity falling under Section 1) of 4. The Organization shall, in accordance with Chapter IV. paragraph 2 of ArLielc 84,. co-operate Nvith inter-government-al organizations in connection 2. Notwithstanding paragraph. I of this with restrictive business practices a ffecting Article, the Organization mnay mrake recoin- anv field corning within the scope of this Charter inenldations to Members ancd to appropriate andi those organizations shall be entitled to inter-goveriuriental organizations concernoinb consult the Organization, to seek advice, anid any features of the agreements referred to in to ask that a stucly of a particular problem paragrapli I (b) of this Article which may have be made. the effect described in paragraph i- of Article 44. - 42

CHAPTER VI INTER-GOVERNMENTAL COMMODITY AGREEMENTS

SECTION A. - INTRODUCTORY CONSIDERATIO.-S Article 52. that the provisions of this Chapter, together with any other requirements it nmay establisli, Difficulties relating to Primary Commodities. sliall apply to inter-governrmental agreements The Members recogiiize that tlhe conditions regarding that comnmodity. under xvwich some primary coînmnodities are produced, exclianged andcl consuined are such tlhat international trade in these coniinodities Article 54. rnaY be affected by special difficultiess such as O bjectiijes of Inter- goveriinienz1ta Co-nuniodity the tendency towvards persistent disequtIil ibriumn .-I agreements. between production and consuinptiori, the accumulation of 1)urdenslloe stocks and pro- Tule iMemnbers recognize thîat inter-govern- nouniced fluctuations in prices. IThese special mental commodity agreements inay )C eim- difficulties may have serious adverse effects o)ni ployed to achieve tlhe following objectives: the interests of producers and consumers, as (a) tn prevent or alleviate the serious well as wviclespread reperçussiolîs jeol)ardisîng economic diwtictties which inav alise the genieail policy of ecollorlic eXlpansioi. u'lic wvlien adjIlstlllel.s betvetn production \Iemebers reco-nize thlat snicli difticullties rnay, and consumption cannot be. effected by at times, necessitate slpecil tratînient of the normal inarket forces alone as rapidly international trade in sucli coinniodities througtî as the cilirclstances require; inter-Povernmental ugr cement. (b) to provide, duriiw' the period which miay bc necessary. a framewvork for the considerationl and development of mea- Article 53. sures wlîlicl have as their purpose Priniarv and R!ieltced Coni ni od1ities. economic adjustments designed to promote the expansion of consumption or i. For the purposes of this Chapter, the term a shift of resources ancd man-poxver out primary commodity" rleans any product of of over-exppaiided industries. intc new farin, forest or fishery or any nmii:ral, in its and productive occupations; natural form or which has undergone such (c) to moderate pronounced fluctuations in processing as is customarily ret'qired' to prepare the price of a primary commnodity with it for inarketing in substantial voluime in inter- a view to achieving a reasonable degree national trade. of stability on a basis of prices fair to 2. The term shall also cover a group of com- consumers and remunerative to efficient modities, of which one is a primary commodity producers, haviing regard to the desir- as defined irn paragraph i of this Article and ability of securing long-term equilibrium the others are commodities (whîethler primary betwveen the forces of supply and or non-primary) which are so closely related, as demand; regards conditions of production or utilisation, (d) to maintain and develop the natural to the other commodities in the group, that it resources of the world and protect then is appropriate to deal with them in a single from unnecessary exhaustion; agreement. (c) to provide for the expansion of the 3. I f, in exceptional circumstances, the production of a primary commodity Organization finds that the conditions set forth where this can be accomplished with in Article 59 exist in the case of a commodity advantage to consumers and producers; which does not fall precisely under paragraphs i (j) to assure the equitable distribution of or 2 of this Article, the Organization maY decide a primary conmmnodity in short supply.

Article 52. Article 54. Reference to the need to adopt -special treatinent of Inter-governmental coni modity agreements approved the international trade in F h commnodities- merely by the Food and Agriculture Organization for thc means that international trad. is the aspect of a partictu- distribution of basic. fonds at special prices are permitted lar commodity problein directly appropriate for inter- under this draft Charter and are considered to be covered national trcatnient. Agreement regarding the treatment by paragraph (e). of the international trade in a corarmodity might, of course, involve agreement regarding production or consumption of the commodity. - 43 -

SECTION B. - INTER-GOVERNMSENTAL COMMODITY AGREEMENTS IN GENERAL Article 55. tion of ail types of inter-goneniriiital commo- Colnrnodity Shidies. dity agreements: (a) such agreements sihall be openi to parti- i. Any Member :which is substantially inter- cipationi initially by anîy Memiber on ested in the production or consumption of, or terms no less favourableu thazi those trade in, a piarticular primary commodity, and accordce to any otiier country anîd tiiere- which considers that international trade in that after in accordance witil suciz procc.ldure comnrinodity is, or is likely to be, affected by and upon such tennis as niay l)e estab- special difficulties, slhall be entitled to ask that lislhed in the agrecinenit subject to a study of the commodity be made. approval by the Organization; 2. Unless it decides that a prinî_ face case (b) non-Memibers may bc iinitecl by the lias not beeni cstablishled, the Organiization Orgailization to participaLte in such sliall promnptly invite eacla Meniber to appoint agrec:îuzcnts and tia: p)roviJsions of sub- representatives to a study group to m;ake a1 p)aragraph (a) applying to eixibl)Lrs shall study of the commo(lity if the Membncr con- apply ta any niioi-Mluibiler so iîvit(e(d; siders tlhat it is substantially interested in the (c) under such agreements there shall be production or consumption of, or trade in, the equitable treatment as betweerl partici- commodity. Noon-MIemiibers may also be pating countries and non-participating invited. iMlenibers, and the treatmnent accorcded 3. The study group shall promptly Investi- by participating coauitries to noni-par- shall no bgate the production, cozîsumption and trade ticipating M\iembers be less situation in regard to the corninrodity, and shall favourable thal that accorded to any report to the participating (Goverimnents and non-participating iloi-Mienmbur, due con- to the Orgazîizatioii its findings anci its recomn- sideration being given in each case to niendations as to how best to deal : ithî any policies adopted by non-participants in relation to assuiiied special dilficulties which may exist or may bc obligations and expected to arise. The Organization shall a(lvant ages con ferrud under tlie agrece- proinptlv tri'nsmsit to the Muembers these menlt; findings and reconm :ndations. (di) such agreements shall inclucle provision 'or adequate particip)ation of countries substantially interested iii the imrporta- Article 56. .ion or consuinptioni of the couinnodity as well as those substantially interested in Coni>nodity Conjerences. its exportation or production;

i. On the basis of the recommendations of a (e) full publicity shall be given to any inter- study group, or at the request of Members govern mental commodity agreement pro- whose interest represents a substantial part posed or concluded, to the statements of of ;vorld production or consumption of, or considerations and objectives advanced trade in, a particular primary commodity, the by the proposing Members, to the Organization shall promptly convene an inter- nature and development of measures governmental conference to discuss measures adopted to correct the underlying situa- designed to meet the special difficulties which tion which gave rise to the agreement exist or are expected to arise. The Organiza- and, periodically, to the operation of the tion may also, on its own initiative, call such a agreement. conference on the basis of information agreed 2. The Members, including Mermbers not to be adequate by the Members substantially parties to a particular commodity agreement, interested in the production or consumption of, shall give favourable consideration to any or trade in, the commodity concerned. recommendation made under such agreement 2. Each Meember which considers that it is for expanding consumption of the commodity substantially interested in the production or in question. consumption of, or trade in, the commodity concerned, shall be invited to participate in Article 58. such a conference. Non-Members may also be invited to participate. Types of Agreenzien/s. i. For the purposes of this Chapter, there Article 57. shall bc recognised two classes of inter-governmental commodity agreements: General Principles governzing Inter-govermnen/al (a) commodity control agreements as de- Conmrodity Agreements. fined in this Article; and i. The Members shail observe the fallowing (b) other inter-governmental commodity principles governing the conclusion and opera- agreements. -- 44- . Subject to the provisions of paragraph 5 of this Article, it shall prescribe the provisions of titis Article, a coinmociity coul rol agreement af Section C, if any, to whicit titat agreement is ut inter gorerunnentanl agreetît vdiic1i shall cotforn. 5. 'l'lie Organization ntay decide that an (P) the regulations of î,rocldnctioni or the existing or propose(d inter-governrnental agree- quantitative control of exports or iin- uient w'iclt lias tite purpose of securing tite co- i)orts of a priniary coîninodity adtl whicl ordi nated expansion of aggregate world pro- lias the purpose or mniglit lhave thc eiect dîîctioît atnd cotsuLntl)tioni af a primary conuino- of rcducing, or preveîiting an increase diiiy is inot a coaito(litto controlagreement efen iii, the production of, or trade .in, that though thie agreement contains 1prox'isioia for- conîtlodlity; or the future application ofi minintumprices. (b) the regulation of prices. Flowever, any such agreement shall bcldeemed to 'e a com-niodity control agrecertent and shall 3. Tlte Organization shall, on the rucquest of coitfornit to all the provisions of Section C front a jMenmber, a study group or a comln-odity the date on which its miniiumi;in price provisiolas conference, decide whetiter an existing or pro- become operative. posed inter-goveriiiienttal agreement is a coin- inoditv control agreementt witliii the ineaîiintg 6. ''lite Members utidertale nOt tO enit'.'r into of paragraph 2 of this Article. anty new conimodity control. agr-Cee tit, Lttless it lhas been' recoanrninilend bv a. conference called 4. (a) Commodity control agreements shall iii accordance with Article 56. If, in an be subject tO all tht provisions of titis (Chapte r. exceptional case, tliere lias b)etn utireasonable (b) Other iîiter-governrnental comninodity (lelaV iii tue proceedings of the study group or agreements shall be sUbject to the provisions of of tite coinmodity conference, Menmbers sub- this Chapter other than those of Section C. stalntiaily interested in the, production or If, however, the ()rgaîtizationldecides that ail constiimption of, or trade iii, a particular pri- agreement whichi involves the regulation of mary comrindity, may proceed by direct nego- production or thu quiantitative control of tiation to the conclusion of an agreement, exports or imports is not a comrniodity control provided that it confornis to the other provi- agreement within the meaning af paragraph 2 sions af titis Chapter SECTION C. -- INTEII-COVERNMNIENTAL CO.NIMODITY CONTRoI, A.GREEENILTST1 Article 59. be corrected bv normal market forces in time to prevent widespread and undue Circumstances governing t/he Use of Cwn»modity hardship to wTaorkers because, character- Control A agreements. istically in the case of the industry con- a in i. The Meembers agree that commodity concerned, substantial reduction price trol agreements may be employed only when it does not readilv lead to a significant is determined that: increase in consumption but to a reduction of employment, and because areas (a) atburdensome surplus of a primary com- in which the commodity is produced in modity lias developed or is expected to substantial quantity do not afford alter- develop, which, in the absence of spe- native ermploymenl opportunities for cific governmental action, would cause the involved. serious hardship to producers among work',rs whom are smail producers who account 2. Determinations under this Article shall for a substantial portion of the total be made through the Organization by consulta- outDut, and that these conditions could tion and agreement amon- Members substan- not be corrected by normal market tially interested in the commodity concerned. forces in time to prevent such hardship, because, characteristically in the case of the primary commodity concerned, a Article 60. substantial reduction in price does not A dditional Principles governii'g Commodity readily lead to a significant increase in Control Agreernents. consumption or to a significant decrease in production; or The Members shall observe the following (b) widespread unemployment or under- principles governing the conclusion and opera- employinent in connection with a pri- tion of commodity control agreements in addi- mary commodity, arising out of diffi- tion to those stated in Article 57: culties of the kind referred to, in Ar- (a) such agreements shall be designed to ticle 52, hias developed or is expected assure the availability of supplies ade- to' develop, which, in the absence of quate at all times for world demand at specific governmental action, would not reasonable prices, and, when practicable, Article 60. The term 'reasonable" as applying to prices in sub-paragraph (a) is to be interpreted as in Article 54 (c' - 45 -

shlal1 provide Ïor measures designcd to regarding its activities. lhe Organizatiumn niay expand world consumption of the coni- at any time require tl-eir aincndinent if it finds mcdity; that they are inconsistent with tUe provisions (b) under such agreencnts, participating of this Chapter. countries which arc largely interested 7. E'acll Commodity Counicil sliall make in imports of the commodity con- periodic reports to the Orgarnization on thu cerned shall, in decisions on substantive operation of the agreement whicli it administers. matters, have together a number of In addition it shall make such special reports votes equal to that of those largely as the Organization may require or as the interested in obtaining export markets Council itself considers to be of value to the for the commodity. Any participating Organization. country, which is largely interested in S. The expenses cf a Cornmodity Council the commodity but -which does not fall precisely under either of the above shall be borne by the participating countries. classes, shall have an appropriate voice 9. When an agreement is terminated, the withiri such classes; Organization shall take charge of the archives (c) such agreements shall make appropriate and statistical material of the Commodity provision to afford increasing opportu- Council. nities for satisfying national consumption and world market requirements from Article 62. sources from xvhich such requirements Initial Terni, Review and Renewal of Commodity can be supplied in the most effective Control A greenients. and economic manner, due regard being i. Commodity control agreements shall be had to the need for preventing serious concluded for a period of not more than five economic and social dislocation and to years. Any renewal of a commodity control the position of producing areas suffering agreement, including agreements referred to from abnormal disabilities; in paragraph i of Article 65, shall be for a (d) participating countries shall formulate period not exceeding five years. The provisions and adopt programmes of internal econo- of such renewed agreements shall conformn to the mic adjustment believed to be adequate provisions of this Chapter. to ensure as much progress as practicable 2. Periodically, at intervals not greater within the duration of the agreement than thrce years, the Organization shall pre- towards sol, tion of the commodity pare and publish a review of the operation of problem involved. each agreement in the light of the principles set Article 61. forth in this Chapter. Moreover, a commodity control agreement shall provide that, if the Administration of Commodity Control Organization decides that its operation has A areeiients. failed substantially to conform to the principles I. Each commodity control agreement shall laid down in this Chapter, participating coun- provide for the establishment of a governing tries shall either revise the agreement to con- body, herein referred to as a Commodity form to the principles or terminate it. Council, which shall operate in conformity Nvith the provisions of this Article. 3. Commodity control agreements shall include provisions relating to withdrawal of any 2. Each participating country shall be en- party. titled to have one representative on the Com- modity Council. The voting power of the repre- Article 63. sentatives shall be determined in such a way as to conform with the provisions of Article 6o (b). Settlement of Disputes. 3. The Organization shall be entitled to Each commodity control agreement shall appoint a non-voting representative to each provide that: Commodity Council and may invite any com- (a) any question or difference concerning petent inter-governmental organization to nomi- the interpretation of the provisions of nate a non-voting representative for àppoint- the agreement or arising out of its ope- ment to a Commodity Council. ration shall be discussed originally by 4. Each Commodity Council shall appoint a the Commodity Couancil; non-voting chairman who, if the Council so re- (b) if the question or difference cannot be quests, may be nominated by the Organization. resolved by the Council in the terms of 5. The Secretariat of each Commodity Coun- the agreement, it shall be referred by cil shall be appointed by the Council after con- the Council to the Organization, which sultation with the Organization., shall apply the procedure set forth in 6. Each Commodity Council shall adopt Chapter VIII with appropriate adjust- appropriate rules of procedure and regulations ments to cover the case of non-Members.

Under sub-paragraph (b): large exporters or importers, shall have an appropriate voice. (i) there shall be no more than two groups of countries within an agreement, and the principle of -equal lt is recommended that any difference on voting voice" in substantive matters shall apply as between arrangements which cannot be settled in a commodity them; conference should be dealt with in the same manner as (ii) countries which are large producers and consumers laid dowvn in Article 63 for the settlement of differences of the commodity concerned, but which are not concerning commodity control agreements. - 40 -

SECTION D. - MISCELLANIEOUS PROVISIONS Article 64. respectively a Member and non-Member of the Organization with its dependent terri- RlelatLions zeilIlhtr-b mental Organizations. tories. If a Member or 'ion-Memnber and its With the object of ensuring appropriate co- dependent territories formn a group, of which operation in maILters relatiii-, to inter-govern- one or more units are mainly initercstcd in the nwntal coiminodity agreements, any inter- export of a comnmlodity and one or more in the governmental organization which, is deemed import of the commodity, there may be either to be competent by the Organization, such as joint representation for all the territories the Food anci Agriculture Organization, shall within the group or, xvhere it is SO desired, bc entitled: separate representation for the territories mainly interested in exportation and separate (a) to attend any study group or commodity representation for the territories mainly inte- conference; rested in importation. (b) to asl; that a study of a primary commodity be made; (c) to submit to the Organization any Article 67. relevant study of a primary commodity, and, on the basis thereof, to recommend Exceptions 'o Provisions relating to Inter- to the Organization that further study govermeztiental Commodity A greemstents. of the commodity be made or that a commodity conference be convened. i. The provisions of this Chapter shall not apply: Article 65. (a) to any bilateral inter-governmental agreement relating to the purchase and Obligations of M1,1em bers regarding Existinlg and sale of a commodity falling under Proposed Conznzodily A agreements. Section D of Chaprer IV; i. Members shall transmit to the Organiza- (b) to any inter-governinental commodity tion the full text of each inter-governmeintal agreement involving no more than one commodity agreement in which they are parti- exporting country and no more than cipating at the time they become Members of one importing country, and not covered the Organization. Members shall also trans- by sub-paragraph (a) above; Provided mit to the Organization appropriate informa- that if, upon complaint of a non- tion regarding the formulation, provisions aind participating i\lember, the Organization operation of such agreements. Members shall finds that the interests of that MViember conform with the decisions made by the are seriously prejudiced by the agree- Organization regarding their continued partici- ment, the agreement shall become sub- pation in any such inter-governmental commo- ject to such provisions of this Chapter dity agreement which, after review by the as the Organization may prescribe; Organization, sha]l have been found to be inconsistent with the provisions of this Chapter. (c) to those provisions of any inter-governmental commodity agreement which 2. Members shall transmit to the Organiza- are necessary for the protection of tion appropriate information regarding any public morals or of human, animal or negotiations in which they are participating plant life or health; Provided that such at the time they become Members of the agreements are not used to accomplish Organization, for the conclusion of an inter- results inconsistent with the objectives governmental commodity agreement. Mem- of Chapter V or Chapter VI. bers shall conform with decisions made by the Organization regarding their continued parti- 2. The provisions of Articles 55 and 56 and cipation in any such negotiations. The Orga- of Section C of this Chapter shall not apply to nization may dispense with the requirements of inter-governmental commodicy agreements a study group or a commodity conference, if it found by the Organization to relate solely to finds them unnecessary in the light of the the equitable distribution of commodities in negotiations. short supply. Article 66. 3. The provisions of Section C of this Chapter Territorial Application. shall not apply to commodity control agreements found by the Organization to For the purposes of this Chapter, the terms relate solely to the conservation of exhaustible " Member " and " non-Member'" shall mean natural resources. - 47

CHAPTER VIl THE INTERNATIONAL TRADE ORGANIZATION

SECTION A. - STRUCTURE AND FUINCTIONS Article 68. tance of the Charter on its belialf by the competent Mlenmber in accordance Membership. ;ithi paragrapli 2 of Article 99, or, in I. The original Members of the Organization the case of a territory in respect of shall be those States invited to the United which the Charter bas been accepted Nations Conference on Trade and Employment under paragraph i of Article 99, upon whose Governments accept this Charter by its becoming thus autoroionous...... in accordance with paragraph i 4. Any separate custorns territory adrnitted of Article 98, or, if this Charter shall not have to the Organization under paragraph 3 of this entered into force by ...... I94.., those States Article whicli is accorded full voting riglits whose Governmenits agrce to bring this Charter shall thereupon be a Member of thle Organiza- iiito force in accordance with the proviso tion. in paragraph 2 of Article 98. 5. The Conference shall determine the condi- 2. Any other State whose membership has tions upon. whicli rnembersliil) riglits and obli- been approved by the Conference shall become gations slia.h be extended to Trust Territories a Member of the Organization upon its accep- administered by the Unitcd Nations anld to the tance, in accordance with paragraph i of Free Territorv of Trieste. Article 98 of this Charter, as amended up to the date of such acceptance. Article 69. 3. The following separate customs terri- Fituclioits. tories, though not responsible for the formal The Organization shall perform the functions conduct of their diplomatic relations, shall be provided for elsewhere in this Charter. In admitted to the Organization on such terms as addition the Organization shal1 have the may be determined: following functions: (i) any separate customs territory invited (a) to collect, analyse and publish infor- to the United Nations Conference on niation relating to international trade, Trade and Employment upon accep- including information relating to com- tance of the Charter on its behalf by the mercial policy, business practices, com- competent Member in accordance with modity problerns and industrial and paragraph 2 of Article 99; general economic development; (ii) any separate customs territory not (b) to encourage and facilitate consultation invited to the United Nations Confer- among Meembers on all ence on Trade and Employment, pro- questions relating posed by the competent Member having to the provisions of this Charter; responsibility for the formal conduct of (c) to undertake studies on, make recom- its diplomatic relations and which is mendations for, and promote {nter- autonomous in the conduct of its exter- national agreement on, measures de- nal commercial relations and of the signed other matters provided for by this (i) to assure just and equitable treat- Charter and whose admission is ap- ment for foreign nationals and proved by the Conference, upon accep- enterprises;

Article 68. whlich did not becorne a full Mernber as a result ofdecisions The Preparatory Committee considered a suggestion taken at the WorJd Tiade Conference and which applies to add to Article 68 provisions regarding the effect of under paragraph 3 of this Article for admission to the suspension of, or expulsion from, membership in the Organization, will have to be determined by the Confer- United Nat.-ons upon mrnembership in the Organization. ence of the Organization when the application is made, It was agreed that, in view of the complexity of the and the final draft of the Charter must so provide. issues involved and the late stage at which the su-gestion Paraggraph 4. was made, this question should be deferred until the See second footnote to of Article 68. World Trade Conference by which time governments paragraph 3 would have been able to study it fully. Article 69. Paragraph 3. Paragraph (c) (i). The Delegation of France found itself able to accept The deletion of the mention of specific classes of such this paragraph only on the condition that it could not nationals and enterprises should not be taken as indicat- be applied to Germany, a part of Germany or an Occu- ing that these classes are not covered in the above broad pation Zone in Germany. language. Thus such language *vould cover treatment Obviously the rights and obligations of any separate of, for example, commercial travellers, and foreign customs territory of the type referred to in paragraph 3 creditors in bankruptcy, insolvency or reorganization. 48 - (ii) to expand the volume and to (e) to co-operate with the United Nations improve the bases of international and inter-governmeiital organizations in trade, including rneasures designed furthering the acliievement of the to facilitate commercial arbitration economic and social objectives of the and the avoidance of double taxa- United Nations and the restoration and tion; and maintenance oi interiational peace and (iii) generally to achieve any of tlhc becurity. objectives set forth in Article i; (d) generally to consult wvith and make Article 70. recommendations and, as necessary, Struchtre. furnish acivice and assistance to Members regarding any matter relating to the The Organization shall lhave a Conference, operation of this Charter, and to take an Executive B3oard, a Tariff Committee, any other action necessary aind proper Commissions as established under Article 79, to carry out the provisions of this and such other organs as may be required. Charter; There shall also be a Director-General and Staff.

SECTION B. - TriL CONFERENCE Article 71. second vote taken by a simple majority of the Composition. votes cast in accordance with the plan of weighted voting set out in Annex ... 2 to this I. The Conference shall consist of all the Charter. Members of the Organization. 2. Each Member shall have one representative Article 73. in the Conference and may appoint alternates Sessions, Procedure and Officers. and advisers to its representative. 3. No representative in the Conference may i. The Conference shall meet in regular more than one annual sessions and in such special sessions as represent Member. may be convoked by the Director-General at the request of the Executive Board, or of a Article 72. majority of the Members. Votisg. 2. The Conference shall establish rules of Alternative A. procedure which may include rules appropriate for the carrying out of its functions during the i. Each Member shall have one vote in the intervals between its sessions. It shall Conference. annually elect its President and other officers. 2. Except as othenvise provided in this Charter, decisions of the Conference shall be taken by a majority of the Members present Article 74. and voting. Powers and Dvties. Alternative B. i. The powers and duties attributed to the Organization by this Charter and the final i. Each Member shall have in the Conference authority to determine the policies of the the number of votes allocated to it in pursuance Organization shall, subject to the provisions of of the provisions of Annex ...1 to this Charter. Article 8i, be vested in the Conference. 2. Except as otherwise provided in this 2. The Conference may assign to the Charter, decisions of the Conference shall be Executive Board the exercise of any power or taken by a simple majority of the votes cast. the performance of any duty of the Organiza- tion, except such specific poavers and duties Alternative C. as are expressly conferred or imposed upon the i. Each Member shall have one vo&e in the Conference or the Tariff Committee by this Conference. Charter. 2. Except as otherwise proVided in this 3. In exceptional circumstances not else- Charter, decisions of the Conference shall be where provided for in this Charter, the Con- taken by a majority of the Members present ference mav wvaive an obligation imposed upon and voting; Provided that, at the instance of a Member by this Charter; Provided that any any Member, any decision reached by the such decision shall be approved by a two-thirds Organization on the matters provided for in majority of the votes cast and that such Articles ... 2 shall require corroboration by a majority shall comprise more than half of the

Article 72. Article 74. 1 See the proposals for wveighted voting given in the Paragraph 3. Appendix. The Delegation cf Chile reserved its position regarding 2 The Articles to be mentioned would be determined the first sentence insofar as it relates to Article I5. by the World Conference. - 49 - Members of the Organization. The Conference 5. The Conference may make reconiniieda- may also by such a vote tions to Mlembers and to initer-gover-nmenital (a) define certain categories of exceptional orgaIiizations regarding any matter pertaiLing circumstances to which other voting to tile purpose and objectives set forth in requirements shall apply for the waiver Artclce I. of obligations, and 6. The Conîference shall approve the budget (b) prescribe such criteria as may be ne- of the Organization and shlall apportion the cessary for the application of this expenditures of tthe Organization ainong the paragraph. Members in accordance with a scale of contributions to be fixed from time to time by the 4. The Conference may prepare or sponsor Conference following such principles as may agreements wvith respect to any matter %vithin be applied by the United Nations; Provided the scope of the Charter and, by a two-thirds that no Meember shall be required to contribute majority of the votes cast, recommend such more than one-third of the total of such agreements for acceptance. Each Mniember expenditures Without its consent. shall, within a period specified lby the Con- ference, notify the Director-General of its 7. The Conference shall determine the scat acceptance or non-acceptance. In the case of of the Organization and shall establish such non-acceptance a statement of the reasons branch offices as it may consider desirable. therefor shall be forwarded with, the notification. SECTION C. - TuIE EXECUTIvE BOAR{D Article 75. entitled to clect one or more Members to the Board according to the number Composition of the Executive Board. of States which comprise it and the pro- Alternative A. portion of world trade they together i. The Executive Board shall, subject to represent. the provisions of the other paragraphs of this :2. The Conference shall make regulations Article, consist of Members of the Organization relating to paragraphs i (b), (c) and (d) of this as follows: Article which shall provide for the mode of election, the conditions under which groups (a) Canada, China, France, India, Union of under paragraph i (d) of this Article may be Soviet Socialist Republics, Unitcd King- formed, the method of reallocating scats where dom, United States of America and necessary, and other related matters. either Belgium and the Netherlands alternating every three years or the 3. The Mnembers elected to the Executive Customs Union of Belgium, Luxemburg, Board shall norrrilly be elected for terms of and the Netherlands should these States three years. TI.e Conference shall establish desire to be represented as a unit; rules with regain d to these terms designed to ensure a reasonable measure of continuity in (b) Three Members elected by the American representation on the Board. Republics not entitled to a seat on the Board under sub-paragraph (a); 4. During the time that any State mentioned in paragraph i (a) of this Article is not a Mem- (c) One Member to be elected by each of ber of the Organization, the size of the Exe- the following groups of States if their cutive Board shall be reduced accordingly. members desire to be represented as a group: 5. If at any time the number of States (i) Egypt, Iraq, Lebanon, Saudi Ara- referred to in paragraph i (b) of this Article be bia, Syria, Transjordan and the seven or less, those States shall be entitled Yemen; to elect only one MIember to the Executive Board. Should at any time this number be (ii) Denmark, Finland, Iceland, Norway more than seven but less than fifteen, they and Sweden; shall be entitled to elect two Members to the (d) Five Members elected by the remaining Board. Members; Provided that groups of not less than four States, having common 6. Should at any time the number of States interests, and representing a certain referred to in paragraph i (d) of this Article be proportion of world trade may be (a) four or more but less than seven, formed with the approval of the Con- (b) seven or more but less than fifteen, ference and any such group shall be (c) fifteen or more but less than twenty-one,

Paragraph 6. representative on the Board, Luxemburg would fall The Delegation of Canada reserved its position on the under paragraph i (d) of this Article. proviso. The Preparatory Committee wvas not able to examine fully the conception of giving membership in the lBoard Article 75. to customs unions. This matter should be considered Paragraph i (a). more thoroughly by the World Conference. If the Customs Union of Belgium, Luxemburg and the Netherlands as succh should not desire to appoint a - 50 -

(d) twenty-one or more but less than A retiring Melnber shall be eligible for imme- twventy-eight, cdiate re-election.

those States shall bc cnltitled to elect one, two, 5. At the first election: or four to three Memnbers the Board respectively. (ai) Canada, China, France, India, United 7. The number of Memlbers on the Executive KingdonI, United States, Union of Soviet Board may, upon a reconniiendation of the Socialist Republics -manl the Custoilis Union of Board, be increased by the Conference by a .Beigiiuni, Luxernburg and the Netherlands, two-tlhirds majority of the votes cast. should tue States rnernbers of tlhat CustoIns Union clesire to be repiresuiited as a unit, shall 8. Notwithstanding the provisions of Ar- be appointed under paragraph 2; ticle 95, any amendment of this Article relating (b) Nine other MIeiurs shall be elected, to paragraph i (a) or to the election of Alenbers of wvlhich the terms of office of three shall exl)ire to i the B3oard under paragraph (b), (c) and at the end oi one vear and of three other (d) or involving the rearrangement of groups Members at the end of two years. established under paragraph i (c) or formed under paragraph i (ci), shall become effective 6. (ai) During the tinie that any State men- upon its approval by the Conference by a tioned in paragraph 2 of this Article is not a majority of the votes cast. Member of the Organization the size of the Board shall be reduced accordingly. be 9. The provisions of this Article shall (b) During any time that the number of subject to review by the Conferenic(e every Mecmbei of the Organization is less than three years. twenty-eight the numbers six, two and two shall be substituted for the number nine, threc Alternative B. and three respectively in paragraph 5 (b) of this Article. i. The Executive Board shall consist of the representatives of not more than fifteen of 7. T'he Conference shall make regulations the Members of the Organization, elected by which shall apply the provisions of paragraph the Conference by the affirmative vote of 5 (b) at any time when the number of Members two-thirds of those present and voting. Seven on the Board is varied under paragraph 6 (b) of of the Members may be immediately re-élected this Article. on the expiration of the term for xvhich they have been elected. Article 76. Volizng. 2. Tlhe number of Members on the Executive Board may, upon a recommendation of the i. Each member of the Executive Board Board, be increased by *the Conference by shall have one vote. a twvo-thirds of majority the Members present 2. Decisions of the Executive Board shall be and voting. made by a majority of the votes cast. 3. The Members elected to the Executive Board shall normally be elected for terms of Article 77. three years. The Conference shall establish Sessions, Proceditre and Officers. rules with regard to these terms designed to ensure a reasonable measure of continuity in i. The Executive Board shall adopt its own representation on the Board. rules of procedure, including rules concerning the convening of its sessions. The rules of Alternative C. procedure shall be subject to confirmation by the Conference. i. Subject to the provisions of paragraph 6 of this Article, the Executive Board shall 2. The Executive Board shall annually elect consist of seventeen Members of the Organiza- its Chairman and other officers, who shall be tion. eligible for re-election. 2. The eight States of chief economic im- 3. The Chairman of the Executive Board shall be entitled ex portance, as determined by the Conference at officio to participate, wvith- out the right to vote, in the of intervals of three years by a two-thirds majo- deliberations rity of Members present and voting, shall be the Conference. entitled to membership of the Board. 4. Any Member of the Organization which 3. The other is not on the Executive Board, shall be invited Members shall be elected to to participate in the discussion by the the Board by a two-thirds vote of the Confer- Board of any ence. matter of particular and substantial concern to that Member, and shail, for the 4. Subject to paragraph 5 one-third of the purpose of such discussion, have all the rights Members referred to in paragraph 3 shall be of Members on the Board, except the right to elected each year for a term of three years. vote.

Sub-paragraph 5 (a). See the second note to paragraph i of Alternative A. -- 51 - Article 78. of the Cormimissions andi shalll take suclh action upon tlheir recoînimenidatioiis as it may decini Powers and Duties. appropriate. It shall prepare the provisional encl.ui r) the Cnnferi-nci.~ i. The Executive Board shall be responsible--- for the executioni of the policies of the Orga- 2. lh'e Executive Board may make recoin- nization and shall exercise the powers and mezîdations to the Conference, or to inter- perform the duties assigiied to it by thC goverîiîiiental organizations, on any subject Conference. It shall supervise the activities within the scope of this Charter.

SECTIoN D. - TijE Co.Ni.îssioNs Article 79. or experience to carry out the functions of the Commissions. Establishment and Fu(nctions. 2. The number of members, which shall not The Conference shall establisli sulch Com- exceed seven, of each Commission and the missions as may be required for the performance conditions of their service sha11 be determined of the functions of the Organization in accord- in accordance with regulations prescribed by ance Nvith the provisions of this Charter. Tlhe the Conference. Commissions shall have such functions as the 3. Eaclh Commission shahl elect its Chairman, Conference may decide. Commissions shall and shall adopt rules of procedure wvhichî shall report to the J.Executive Board and shall perforni be subject to approval by the Executive Board. such tasks as the Board may assign to them. 4. The rmies of procedure of the Conference The Commissions shall consult each other as and of the Executive Board shall provide as necessary for the exercise of their functions. appropriate for the participation in their deliberations, without the right to vote, of the Article 80. chairmen of Commissions. Composition aizd Proceditre. 5. The Organization shall arrange for representatives of inter-governmental organizations i. Except as otherwvise decided by thle considered by the Organization to have a special Conference, Commissions shall be composed of competence in the fielk of activity of any of the persons chosen by the Executive Board. flie Commissions, to participate in the work of such persons so chosen shail be qualifiec by training Commissions.

SECTION E. - THE TARIFF COMMITrEE Article 81. ment on Tariffs and Trade referred to in para- graph1 i (d) of Article I7 which are Members The TarifJ Coirnmiltee. of the Organization. i. There shall be a Tariff Committee which 3. [Provisions relating to .he voting power shall act on behalf of the Organization in of each initiating the negotiations provided for under rnember]. paragraph i of Article I7 and in the making 4. [Provisions relating to the majority of of recommendations and determinations pur- votes required for decisions of the Committee]. suant to paragraph 2 of Article I7. 5. The Committee shall adopt its own rules 2. The Tariff Committee shall consist of of procedure, including provision for the those contracting parties to the General Agree- election of its officers.

SECTION F. - THiE DIRECTOR-GENERAL AND STAFF Article 82. 3. The Director-General shall present to the Conference an annual report on the work of the The Director- Geizeral. Organization and the annual budget estimates i. The chief administrative officer of the and the financial statements of the Organization. Organization shall be the Director-General. He shall be appointed by the Conference upon the Article 83. recommendation of the Executive Board. The powers, duties, conditions and term of office The Staff. of the Director-General shall conform to i. The Director-General shall have authority regulations approved by the Conference. He to appoint Deputy Directors-General in ac- shall be subject to the general supervision of the cordance with regulations approved by the Executive Board. Conference. The Director-General sha11 also 2. The Director-Generai or his repres ntative appoint such further members of the Staff as shall be entitled to participate, without the may be required and shall fix the duties and right to vote, in all meetings of the various conditions of service of the Staff, in accordance organs of the Organization. with regulations approved by the Conference. -- 52 -- 2. Tihte paraniotin t consi(leration in the 3. flue conditions of service, suici as tho selection of the Staff anu i the determinution provisions governing CIuialilIcationls, salary, of its conditions of service shall be the necessity tenure and retirement of rnenbers of the Staff of socuriug thie hiîluest standards cuf deficiency, shall be fixed, so faras practicable, 1n conforniity conipetence anc inîtogrity, die regard buiiug wVithl those for rinenibers of the Secretariat of paid to the importance of recruitinent on as wvidu tie Unîited Nations ancd of other specialised a geographical basis as possible. agencies. SECTION G. - OTIîi1 1 ORGA;.xN'IZAIONAL PROVISIONS Article 84. refrain frorn any action which iight prejudice t1ieir position as international officials. 1ùl'lations wc'i/h ot/lher Organiz/ivus. 2. 'l'lie provisions of paragraphl i of this i. The Orgainization shalll bu brouglit into Article shall also apply to members of the relationshlip *vith the United Niations as soon Commissions provided for in Section D of this as practicable as one of thict specialized agencies Chapter. referred to in Article 57 of the Charter of the 3. T'l'e Memnibers shlla respect the inter- United Nations. This relationship shall be national character of tue responsibilities of effected by agreement to be approved by the t)lese and not seek to influence Conference. Any such agreement shall provide persons shall for effective co-operation and the avoidance of them in the discharge of their duties. unnecessary duplication in the activities of the respective organizations. Article 86.

2. The Orrganization shall make arrangements International Lcgal Status of the Organiza/ion. with other inter-goverimrental organizations Th'le Organizationi shall have legal personality which have related responsibilities, to provide and shali enjoy sucli legal capacity as may for effective co-operation and the avoidance of be necessary for the exercise of its functions. unnecessary duplication in the activities of the organizations. The Organizationi may for. this purpose arrange for joint committees, reciprocal Article 87. representation at meetings and establish such Status of the Organization int the Territory other working relationships as niay be necessary. of liembers. 3. The Organization may make suitable i. The Organization shall enjoy in the arrangements for consultation and co-operation territory of each of its Mernbers such legal wvith non-governmental organizations concerned capacity, privileges and immunities as may be with matters within the scope of this Charter. necessary for the exercise of its functions. 4. \Whenever the Conference and the com- 2. Representatives of the Meembers of the petent authorities of any other inter-govern- Organization and its officials shall similarly mental organization whose purposes and func- enjoy such privileges and immunities as may tions lie xvithin the scope of this Charter, deem be necessary for the independent exercise of it desirable their functions in connection with the Or- (a) to incorporate such other'inter-govern- ganization. mental organization into the Organiza- ation, or 3. Such legal capacity, privileges and immunities shall be more particularly defined in (b) to effect a transfer of all or a part only an agreement to be prepared in consultation of its functions and resources to the with the Secretary-General of the United Organization, or Nations and concluded between the Members (c) to bring it under the supervision or and the Organization. authority of the Organization, the Director-General, subject to the approval Article 88. of the Conference, may enter into an appropriate agreement. Members shall, in conformity with Contributions. their international obligations, take the action Each Member shall contribute promptly necessary to give effect to any such agreement. to the Organization its share of the expenditures of the Organization as apportioned by the Article 85. Conference. A Member which is in arrears in Internatioanal Responsibilities of the Director- the payment of its financial contributions to the Genzeral, Staff and Memzbers of Commissioans. Organization shall have no vote in the organs of the Organization if the amount of its arréars i. The responsibilities of the Director-General equals or exceeds the amount of the contri- and of the Staff shall be exclusively interna- butions due from it for the preceding two full tional in character. In the discharge of their years. The Conference may, nevertheless, duties they shall not seek or receive instructions permit such a Member to vote, if it is satisfied from any government, or from any authority that the failure to pay is due to conditions external to the Organization. They shall beyond the control of the Member. - 53 -

CHAPTER VIII

SEITTLEMENT O0D1?I1FFE RENCE]S - IN'RPRETIllr 1AT1ON

Article 89. to arbitration upon sucli terns as may be Consulic.l!ion beI'ecn A.flen bers. agreeci betIvecii the Boiard aîd sticli Members. If any Meember should consider that any 3. Any ruling of the Execiutive Board shall benefit accruing to it directly or indirectly under bu rcviu\\wed by the Cozîference at the request this Charter is being nulliliecd or impaired, or of any interested iIembebr. Upon such1 request that the attainnieiit of any of the objectives the Coonfei-e!ice shall by resolution confirni or set forth in Article i is being iillpedceci, as a modify or reverse such ruling. result of 4. If the Conference considers that the cir- (a) the failure of another Member to carry cuinistanccs are serious enough to justify such out its obligations under this Charter, or action, it may authorize a Meinber or Meinbers to suspend the application to any other Mem- (b) the application by another Mlember of ber or Mernbers of such obligations or conces- any measure, whether or not i. conflicts sions under or pursuant to this Charter as the wvith the provisions of this Charter, or Conference determinres to bc appropriate. If (c) the existence of any other situation, the application to any MIember of any obliga- the Miember may, with a view to the satisfaction or concession is in fact suspended, that tory adjustment of the matter, make written Meunber shall then be froc, not later thani sixty representations or proposals to the other davs after such action is taken, to advise the Member or Members which it considers to be Director-General in writing of its intention to concerned. Any Member thus approacheci withdraw froin the Organization and suclh shall give sympathetic consideration to the withdrawal shall take effect upon the expira- representations or proposals made to it. In tion of sixty days from the day on *vhich any such case. the -Members concerned shall written notice of such withdrawal is received keep the Director-General informed generally by the Director-General. - of any discussions undertaken. Article 91. Article 90. Reference to (he Internalional Court of Justice. Reference to the Organization. i. The Conference or the Executive Board i. If the matter is not satisfactorily adjusted may, in accordance wvith arrangements made within a reasonable time or if it falls within pursuant to paragraph 2 of Article 96 of the Article 89 (c), it may bc referred to the Exe- Charter of the United Nations, request from cutive Board or, with the approval of the the International Court of Justice advisory Executive Board, directly to the Conference. opinions on legal questions arising within the The Executive Board or the Conference, as the scope of the activities of the Organization. case may be, shall promptly investigate any matter so referred and shah make recom- 2. Any resolution of the Conference under mendations to the Members which it considers paragraph 3 of Article 90 or decision of the to be concerned or give a ruling on the matter, Conference under any other Article of this as appropriate. It may in the course of such Charter shall be subject to review by the investigation consult with Members, the Com- International Court of Justice through the missions of the Organization, the Economic means of a request by the Organization for and Social Council of the United Nations and an advisory opinion pursuant to the Statute any inter-governmental organization, in cases of the International Court of Justice. The where it considers such consultation necessary. request for review of such resolution or decision shall be made by the Organization, in appro- 2. The Executive Board may refer the matter, priate fornm, upon the instance of any sub- with the consent of the Members concerned, stantially interested Member.

Chapter VIII. Article 90. The Preparacory Committee points out that a limited Paragraph 2. time has been devoted to the study of the means of The Delcgation of the United Kingdom reserved its providing for interpretation of the Charter and for the position on this paragraph. settlement of differences among eIembers and between Members and the Organization. Therefore the Prepara- Article 91. tory Committee recomraends that this subject should receive eariy and full re-examnination by the WA'oild Trade Paragraph 2. Conference and the drafts contained in this Report have The Delegation of Australia reserved its position on this been prepared on the assumption that this course will be paragraph. foUowed. - 54 - 3. The request for an advisory opinion shall Article 92. bc accompanied by a statement, to bc furnished by the Organizatiorn in consultation wvith the Aiiscellancous P>rovisions. Members substantially interested, of the facts I. F"or the purposes of the interpretation underlying the question upon whicli the opinion of this Charter under the provisions of this of the Court is requested. The Organization Chapter, the English and Frerich texts shall shall supply to the Court such further informa- be authoritative. tion as the Court niay require. 2. Nothing in this Chapter shall bc construed 4. Pending the L'.livery of the opinion of to exclucle other procedures provided for in the Intcrnational Court of Justice, the resolu- this Charter for consultation and settlement tion or decision of the Conference shall have of differences arising out of its operation. full force and effect; Provided that thc Con- 3. The Members undertake that they will ference shall suspend the operation. of any suchl not have recourse to any procedure other than resolution or decision penduig the delivery of the procedures envisaged in this Charter for the opinion %vherc in the vicw of the Conference complaints and thie settlement of difficulties damage difficult to repair would otller\vise bc arising out of its operation, nor, without pre- caused to a Member concerned. judice to any other international agreement, to unilateral sanctions of any kind on the ground 5. The opinion of the International Court of that there lias been a violation of an obligation Justice upon the questions referred tc it shall of this Charter, in advance of a complaint to be binding upon the Organization. The resolu- the Organization and a final decision of the '.ion or decision in question shall be modified Organization. establishing such violation. insofar as it does not accord witlh the opinion 4. The Conference and the Executive Board of the International Court of justice. shall establish such rules of procedure as may be necessary to carry out the provisions of this Chapter. The rules of the Conference shall include provisions concerning the maintenance in force or suspension of any rulings of the Executive Board pending review by the Conference under paragraph 3 of Article 90. - 55

CHAPTER IX GENERAL PROVISIONS

Article 93. 2. Any Member wishing to maintain or enter into a commercial agreement with a non- Relations with Non-Members. Member which extends or would extend to the non-Mlember any of the benefits of Chapter IV Alternative A. of this Charter or any of the tariff reductions effe,'tcd by the AMember concerned in pursuance i. Nothing in this Charter shall preclude of Article I7 of the Charter shall seek the any Member from concluding or maintaining approval of the Organization for such. a course; commercial treaties or maintaining econoinic Provided tlhat no Member shall be required to relations wvith non-Members; Provided tliat no terminate any such existing agreement until Member shall seel preferential export or import it lias received %vritten notification from the duties or taxes or exclusive advantages in its Organization of its decision in respect of that trade with any non-Miember. agreement in accordance %vith the procedures laid down in this Article. 2. If a substantial part of any Member's foreign trade is xvith non-Members, sucl Memi- 3. In deciding whether it should grant ber shall be entitled to suspend the application approval in respect of the question referred to of aiiy of the provisions of this Charter; Pro- in paragraph (2) of this Article, the Organiza- vided that their execution causes or threatens tion shall have regard to the following consider- to cause a serious injury to its legitimatte eco- ations: nomic interests. (a) whether or not the agreement concerned does or would substantially injure the j. Any Member shall afford the Organiza- interests of other Members; tion and directly affected Members an adequate (b) whether or not the termination of an opportunity to consult with it in respect of existing agreement of this nature would its action and of the best way which would substantially injure the interests of the enable the Member concerned to safeguard its Member concerned; interests without prejudicing the general pur- (c) whether or not the expansion of inter- poses and objectives of this Charter and the national trade and the promotion of the legitimate interests of the above-mentioned purposes of the Organization as laid Members. down in this Charter would be adversely If no adjustment can be effected, the MIember affected if the agreement were main- concerned may withdraw from the Organiza- tained or put into effect. tion at any time by written notice addressed to the Director-General either on its owvn behalf 4. A Member may apply to the Organization or on behalf of a territory which is at the time at any time for approval of any agreement self-governing in respect of matters provided for which it proposes to conclude with a non- by this Charter, giving reasons therefor. This Member and to which the provisions of paragraph 2 of this Article apply, but, in the case of withdrawal shall become effective on the date any such agreement which exists at the date such notice is received. The Director-General on which this Charter comes into force for shall immediately notify all other AMembers. that Member, application for approval under the provisions of paragraph 2 of this Article Alternative B. shail.be made within a period of one year from i. No Member shall seek exclusive or pre- that date. ferential advantages for its trade with any 5. Within sixty days of its receipt of written non-Member. notification of a decision by the Organization

Article 93. would be in conflict with the obligations of Members of The Preparatory Committee transmits these three the United Nations. texts to the World Conference, without expressing at this In this connection the Preparatory Corcmittee calls stage any judgment concerning the merits of one proposa] the attention of the World Conference to the definition as against another, in order to assist the World Confer- of a "non-MIember" in paragraph 7 of Alternative "B" ence in determining. in the light of al] relevant circurm- and to the words -although qualified to do so" in para- stances, the text to be incorporated in the Charter graph 3 of Alternative "C" which would exclude frosn governing relations with non-MIembers. the scope of all or some of the provisions of the Article Some question wvas raised as to the status of a Member non-Member countries which were not qualified for of the United Nations if it should fail to become a Membership. The World Conference may wish to Member of the Organization and to the status of a country consider whether these particular passages should be not eligible for membership in the Organization. The retained or deleted in the light of the resolution regarding World Conference may wish to seek expert opinion as to Spain which the Gencral Assembly adopted on I2 Decem- whether. under these circumstances, any of the drafts ber s946. - 56 - disapproving any agreement to which the with any non-Member, for such further periods provisions of paragraph 2 of this Article as the Organization mnay prescribe. At any apply, a Member either shall inform the Organi- time before the expiration of any such period, zation of its acceptance of the decision, in a Member may request the Organization in which case the Member shall take steps to writing for such an extension, in *vhich event terimninate-any such existing agreement and shall the period wvill bc considered to be extended not extend or continue to extend to the non- until a reply is received froin the Organization. Member the benefits to Members deriving froin If the Organizatiotn disapproves the extension the negotiations completed in accordance with requested, the Miember shlla theli be free, not Article I7 of this Charter, or, if it is unwilling later than sixty days from the day on which to accept the decision of the Organization, may notice of such disapproval is receivecl b)v the give notice in writing to the D)irector-General Member, to withdraw from the Organiization of its withdrawal from the OrgaLLization, such. effective upon the expiration of sixty days fromt withdrawal. to become effective sixtv days after the date on wvlicli written notice of such with- such notice is given. drawal is received by the Organization. 6. Nothing in this Article shah be inter- 5. At the earliest possible date after any preted as overridling anv of the economic prove;sion of this Charter beconmles effective> provisions in the treaties of peace between the Menibers shall terminate, either by agree- Allied and Associated Powers and the States ment or in accordance with their terms, any which were their enemies during the Second international obligations they may have with WVorld \Var. non-Mienibers wvhich would prevent them from 7. For the purposes of this Article, the term giving full effect to such provision. "non-Mlember" shall mcan a country which, 6. Nothing in this Article shall be inter- although qualified to become a Member, has preted as requiring the withdrawal of any not become a Meember or has Withdrawnr froIn Member from membership in other inter- the Organization. go\erniiental organizations of the type described in Article 57 of the Charter of the United Alternatizve C. Nations or as overriding any of the economic i. No Member shail seek preferential advan- provisions in the treaties of peace between the tages from any non-Member so as to result, Allied and Associated Powers and the States directly or indirectly, in the application by which severe their enemies during the Second such non-Member to any Mernber of measures World War. which, if applied by a Member, would be inconsistent with the provisions of this Charter. 2. No Member shall be a party to any agree- Article 94. ment or other arrangement with any non- General Exceptions. Mrember under which such non-Member is or would be contractually entitled to any of the Nothing in this Charter shall be construed benefits provided to Members by virtue of Chapter IV; Provided that, with respect to anv (a) to require any Member to furnish any such existing agreement, the Organization shail information the disclosure of which it release anv Member from the provisions of this considers contrary to its essential secu- paragraph if it finds that the effect of termina- rity interests, or tion of the agreement would be more detrimen- (b) to prevent any Member from taking any tal to the interests of Members as a whole than action which it considers necessary for its continuation. the protection of its essential security 3. No Member shall, except with the con- interests currence of the Organization, extend to the (i) relating to fissionable materials or trade of any other country, which, although the materials from which they are qualified to do so has not become a Member or derived; has withdrawn from the Organization any of (ii) relating to the traffic in arms, the reductions in tariffs effected by such ammunition and implements of war Member pursuant to Article 17, or extend to and to such traffic in other goods such country any reduction in a preferential and materials as is carried on direct- tariff rate, even though such reduction would ly or indirectly for the purpose of be permitted under the terms of Articles i6 supplying a military establishment; and I7. (iii) taken in time of war or other in international 4. The provisions of paragraphs 2 and 3 of emergency rela- this Article shall become effective for any tions; or Member upon the expiration of one year from (c) to prevent any Member from taking the day on which this Charter enters into force any action in pursuance of its obliga- with respect to such Member; Provided that, tions under the United Nations Charter this period may be extended by the Organiza- for the maintenance of international tion, in respect of the relations of any Member peace and security. - 57 - Article 95. six nionths from the day on which written notice of sticli %vithdrawval is received by the Amendments. Director-Gerleral. i. Any amendment to this Charter which 3. Thiis Charter may be terminated at any does not involve a change in the obligations time by ;grrement of threc-fourths of the assumed by Meembers shall become effective NIembers. upon receiving the approval of the Conference by the affirmative votes of two-thirds of the Article 98. Menibers. 2. Any amendment to this Charter which Enztry into Force and Reuistration. involves a change in the obligations assumed by i. The Government of each State accepting Members shall, after receiving the approval of this Charter shall deposit an instrument of the Conference, become effective for each accupta-nce with the Secretary-General of the Member, accepting the amendmnent,- upon United Nations, who %vill inforrn all govern- acceptance on the part of two-thirds of the ments represented at, the United Nations MIembers and thereafter for each remaining Conference on Trade and Employment and all Member on acceptance by it. The Conference Members of the Unite Nations not so represent- may at any time determine that any amendment ed, of the date of deposit of each instrument of under this paragraph is of such a nature that Charter all Members which have not accepted it within acceptance and of the day on which this a period specified by the Conference shall be enters into force. required to withdraw from the Organization; 2. This 'Charter shall enter into force on the Provided that the Conference may, by the sixtieth day following the day on which the affirmative votes of two-thirds of the Members nuinber of governments represented at the present and voting, determine the conditions United Nations Conferencé on Trade and under which this requirement shall be waived Employment which have deposited instruments with respect to any such, Member. A Member of acceptance pursuant to paragraph i of this not accepting an amendment shall be free to Article shall rcach twenty, and the instrument %vithdraw from the Organization upon the, of acceptance of each other accepting govern- expiration of six months from the day on ment shall take effect on the sixtieth day which written notice of such withdrawal is following the day on which it is deposited; received by the Director-General. Provided that, if this Charter shall not have of the 3. The Conference shall, by the affirmative entered into force by ...... I94..., any votes of two-thirds of the Members, adopt rules governments applying the General Agreement on Tariffs and Trade dated .... . I94..., of procedure for carrying out the provisions together with any othergovernmentsrepresent- of this Article. ed at the United Nations Conference on Trade and Employmnent, may, upon conditions to be Article 96. agreed between them, bring this Charter into force. Any instrument of acceptance deposited Review of the Charter. with the Secretary-General of the United The Conference shall convene a special session Nations shall be taken as covering both pro- for the purpose of reviewing the provisions of cedures for bringing this Charter into force, this Charter before the end of the tenth year unless it expressly provides to the contrary or after its entry into force. is wvithdrawvn before the entry into force of this Charter. Article 97. 3. The United Nations is authorized to effect registration of this Charter as soon as it comes Withdrawal and Termination. into force. i. Without prejudice to the provisions of Article 99. paragraph 2 of Article 17, paragraph 4 of Article 90, or paragraph 2 of Article 95, any Member may withdraw from the Organization Territorial Application. either on its own behalf or on beh?.lf of a sepa- i. Each government accepting this Charter rate customs territory on behalf of which it has does so in respect of its metropolitan territory accepted this Charter in accordance with the and of the other territories for which it has provisions of Article 99 at any time after the international responsibility; Provided that it expiration of three years from the day of the may at the time of acceptance declare that any entry into force of this Charter, by written separate customs territory for which it has notice addressed to the Director-General. The international responsibility possesses full auton- Director-Generai shail immediately notify all omy in the conduct of its external commercial other Members. relations and of the other matters provided for 2. A withdrawal under paragraph i of this by this Charter, and that acceptance does not Article shall take effect upon the expiration of relate to such territory. - 58 - 2. Each Member may, at any time, accept Article 100. this Charter in accordance with paragraph I of Article 98 on behalf of any separate customs Deposit of Tex/s. territory referred to in the proviso of paragraph i of this Article, which is willing to under- The original texts of this Charter in the take the obligations of this Charter. official languages of the United Nations shall be deposited with the Secretary-General of the United Nations, who will furnish certified copies 3. Each Member shall take such reasonable of the measures as may be available to it to assure texts to all interested governments. observance of the provisions of this Charter by the regional and local governments and DONE at .... this .day of . authorities within its territory. One Thousand Nine Hundred and Forty ...... 59

ANNEXES PERTAINING TO PARAGRAPH 2 OF ARTICLE i6

ANNEX A.

LIST OF TERRITORIES REFERRED TO IN PARAGRAPII 2 (a) oi. ARTICLE i6

United Kingdom of Great Brit.in and Northern Ireland. Dependent territories of the United Kingdom of Great Britain and Northern Ireland. Canada Commonwealth of Australia. Dependent territories of the Commonwealth of Australia. New Zealand. Dependent territories of New Zealand. Union of South Africa including South West Africa. Ireland. India (as at Io April I947). Newfoundland. Southern Rhodesia. Burma. Ceylon.

Certain of the territories listed above have in the United Kingdom on Io April I947, under two or more preferential rates in force for cer- contractual agi -ements with the Governments tain products. Any such territory may, by of Canada, Australia and New Zealand, in agreement with the other Members which are resDect of chilled and frozen beef and veal, principal suppliers of such products at the frozen mutton and lamb, chilled and frozen most-favoured-nation rate, substitute for such pork, and bacon [and hams]. It is the intention, preferential rates a single preferential rate without prejudice to any action taken under which shall not on the whole be less favourable sub-paragraph (h) of Part I of Article 43, that to suppliers at the most-favoured-nation rate these arrangements shall be eliminated or than the preferences in force prior to such sub- replaced by tariff preferences, and that nego- stitliHon. tiations to this end shah take pîace as soon as The imposition of a margin of tariff preference practicable among the countries substantially to replace a margin of preference in an internal concerned or involved. tax existing on io April 1947 exclusively The film hire tax in force in New Zealand on between two or more of the territories listed in io April 1947 shall, for the purpose of this this Annex or to replace the preferential quan- Charter, be treated as a customs duty falling titative arrangements described in the following within Articles I6 and I7. The renters' paragraph shall not be deemed to constitute film quota in force in New Zealand on Io April an increase in a margin of tariff preference. I947, shall for the purposes of this Charter be The preferential arrangements referred to in treated as a screen quota falling %vithin paragraph 5 (b) of Article 2 -re those existing Article I9.

The Delegation of Brazil has recorded a reservation on Article 23, paragraph 5 (b). - 60 -

ANNEX B.

LIST OF TERRITORIES OF THE FRENCII UNION REFERRED TO IN PARAGRAPYI 2 (b) OF ARTICLE I6

France. French Equatorial Africa (Treaty Basin of the Congo * and other territories). French West Africa. Cameroons under French Mandate. * French Somali Coast and Dependencies. French Establishments in India. * French Establishments in Oceania. French Establishments in the Condominium of the New Hebrides. * Guadeloupe and Dependencies. French Guiana. Indo-China. Madagascar and Dependencies. Morocco (French zone). * Martinique. New Caledonia and Dependencies. Reunion. Saint-Pierre and Miquelon. Togo under French Mandate. * Tunisia.

* For imports into Metropolitan France. - 61

ANNEX C.

LIST OF TERRITORIES 0F THE CUSTONIS UNION oF BELGIUM, LUXEMBURG AND THE NETHERLANDS REFERRED TO IN PARAGRAPH 2 (b) OF ARTICLE i6

The Economic Union of Belgium and Luxemburg. Belgian Congo. Ruanda Urundi. The Netherlands. Netherlands Indies. Surinam. Curaçao. For imports into the metropolitan territories of the Customs Union. - 62 -

ANNEX D. .

LIST OF TERRITORIES OF THE UNITED STATES of AMERICA REFERRED TO IN PARAGRAPH 2 (b) OF ARTICLE 16

United States of America (customs territory). Dependent territories of the United States of America. Republic of the Philippines.

The imposition of a margin of tariff preference between two or more of the territories listed to replace a margin of preference in an internal in this Annex, shall not bc deemed to constitute tax existing on io April 1947 exclusively an increase in a margin of tariff preference. - 63 -

ANNEX E.

LIST OF TERRITORIES COVERED BY PREFERENTIAL ARRANGEMENTS BETWEEN CHILE AND NEIGHBOURING COUNTRIES REFERRED TO IN PARAGRAPH 2 (d) OF ARTICLE 16

Preferences in force exclusively between, on the one hand, Chile and, on the other hand, I. Argentina 2. Bolivia 3. Peru, respectively. - 64 -

ANNEX F.

LIST OF TERRITORIES COVERED BY PREFERENTIAL ARRANGEMENTS BETWNEEN THE SYRO-LEBANESE CUSTOMS UNION AND NEIGHBOURING COUNTRIES REFERRED TO IN PARAGRAPH 2 (d) OF ARTICLE 16

Preferences in force exclusively between, on the one hand, The Syro-Lebanese Customs Union and, on the other hand, 1. Palestine 2. Transjordan, respectively. - 65 -

APPENDIX 1. The following formulæ for determining the 2. For the purposes of the initial allocation number of votes to be allocated to each Member of votes, the factors (b), (c) and (c) in Formula A were proposed, each by one delegation. and (a), (b) and (c) in Formula 1' shall be calculated on the average of the last three Formula A. pre-war calendar years in which the Member (a) I vote for every 10 millions of population. was in a position to conduct normal trade and (b) I vote for every 50 million U.S. dollars the full calendar year preceding the entry into of external trade. force of the Charter. The succeeding calcula- (c) I vote for every 500 million U.S. dollars tions of these factors to be made at the time of national income. of the periodic review provided fur in para- (d) I vote for every 10% of the percentage graph 9 of Article 75 (using Alternative A of of external trade to national income:. that Article) shall be based on the average of the three immediately precediing calendar (e) 100 basic votes. years. Formula B. i vote for 3. The delegations who proposed the for- (a) every 50 millions U.S. dollars mulke set out above submitted the following of foreign trade. tables showing the results of their application. (b) i vote for every 500 million U.S. dollars The statistical material used in these tables of national income. was the best available to these delegations at (c) I vote for very 25 U.S. dollars of foreign the Second Session. More accurate material trade per capita. will be supplied to the World Confererice by (d) 10 basic votes. the statistical services of the United Nations.

Table A (using Formula A).

Population Votes as 'la test External National °Ô of trade Total trade illeozuae to National percentage Country information votes of total available) 1937 1-)40 income Ested § Millions .zil.lion $ Million

Albania. I0 n.a. 102* 1.2 Argentina 14 I.239 2,Soo 44 I36 1.7 Australia 7 13090 3,200 34 132 i.6 Austria. 7 501 n.a. I116* 1.4 . Belgium and Colonies 19 I1,74S 2.350 74 '.49 J.8 Bolivia. 4 65 160 4I '05 1.3 Brazil 45 677 2,500 27 I26 1.5 Bulgaria 7 I24 3o5 '5 I07 1.3 Burma. IS 276 ii.a. I 14* 1 .4 Canada. 1 2 rI,824 31 152 I.9 Ceylon. 205 375 55 I12 1 .4 Chile. 5 2S3 71 115 I.4 China . 455 535 12,000 4 ISI 2.2 Colombia. 10 IS2 700 26 I09 1.3 Costa Rica ...... 23 50 46 105 1.3 Cuba. 5 3I5 420 75 115 I.4 Czechoslovakia I4 Soo 3,000 27 126 I.5 Denmark. 4 730 I,51 I 48 123 1.5 Dominican Republic . . 4 30 n.a. 103* I.3 Ecuador 3 27 130 21 103 I1.3 Egypt '7 393 1,400 28 i 6 I .4

Ethiopia. 6 n.a. n.a. IOI * 1.2

Finland . 4 404 559 72 II6 1.4 France and Colonies . . I06 2,306 1I,300 20 182 2.2

Greece. 224 I,000 22 109 1.3 Guatemala. 3 37 160 23 103 1.3 Haiti. 3 I8 130 14 'o0 1.2 Honduras. 20 50 40 104 1.3 Hungary. 9 3I5 n.a. 1.3

Iceland. o.I n.a. n.a. 1OI * I.2

India beforee partition) 419 1,369 9,600 14 I89 2.4 Iran. I0 '93 n.a. 108* 1.3 Iraq. 4 75 n.a. 104* 1-3 - 66 - Table A (continued).

Population External National % 0l trade Votes as (latest trade ulcuJIie Total percentage Information to National votes of total Country available) '937 1940 income listed § Millions Million S Million S ltaly. 46 1,299 4,800 27 144 I.8 Lebanon n.a. n.a. 100* 1.2 Liberia. 7 n.a. 0o1 * 1.2 Luxemburg. 0.3 n.a. n.a. 103* 1.3 Mexico. 423 1,400 30 1i6 1.4 Netherlands and Colonies 80 2,284 3,500 O5 168 2.0 New Zealand ..... 2 482 600 80 119 1 5 Nicaragua. I I3 50 26 103 1.3 Norway . 3 523 750 70 I19 1.5 Panama 26 .10 65 Io8 I,3 Paraguay. 1 I7 40 .43 104 1,3 Peru. 7 15I 450 34 l os 1.3 Philippines 17 260 n.a. '.3 Poland. 24 463 4,000 1 2 120 1.5 Portugal and Colonies 19 187 n.a. 1'4 J0 *O Roumania . 16 378 n.a. I 14* 14 Salvador 2 ;!6 So 33 104 I.3 Saudi Arabia...... 4 n.a. n.a. 1.2 Siam ... î6 I26 n.a. îoS* 1.3 Sou thern Rhodesia . î.8 67 150 45 io6 1.3 Sweden. 1,050 2,900 36 132 I.6 Switzerland. 4 706 2,400 29 122 1.5 Syria. n.a. n.a. ii.a. I00* 1I.2 Transjordan . . : 0.5 8 n.a. 100* I.2 Turkey. I9 202 n.a. '.4 Union of South Africa . 1Il1 684 1,000 'uS I24 1.5 U.S.S.R. 193 817 32,000 199 2.4 3 IOO United Kingdom and Colonies ioù 8, 1 15 26,400 31 329 4.0 United States of America. 142 6,379 77,800 S 399 4-9 Uruguay 2 100 340 29 102 1.3 Venezuela. 4 332 1 20 28. I .3 Yemen. 3 n.a. n.a. 100* 1.2 Yugoslavia I6 263 1,500 I8 112 1.4

National income figures are based on those prepared in connection with the calculations for the Monetary Fund voting system. * indicates notional figure inserted to complete the illustration. n.a. = not available. § = corresponding percentage on "one-State one-vote" system is 1.5.

Table B (using Formula B).

Formula Column (I) = I vote per 50 million dollars. Column (2) = I vote per 500 million dollars. Column (3) = vote per 25 dollars trade per capita. Column (4) = 10 votes as basic vote. Column: (1) (2) (3) (4) (5) (6) Foreign trade National Trade Votes as (Av.. 1938 and Basic Total Country income per percentage of latest 12 months vote votes total listed available) 1940

Albania . n.a. n.a. 'o Argentina. 26 6 4 46 2.6 Australia. 26 7 10 2.8 Austria. 5 n.a. 2 Io Belgium and Colonies 37 5 4 IO 56 3-I Bolivia. n.a. Io

Brazil 23 5 I Io 39 2.2 Bulgaria n.a. 10 Burma. 6 n.a. IO IO Canada. 59 12 20 Io 9' 5.1 Ceylon. 5 2 Io î8 1.0 - 67 -

Table B (continued). Column : (1) (2) (3) (4) (5) (6) Foreign trade and National Trade Votes as Country (Av., 1938 income Basiec Total of latest 12 months per vote votes percentage available) 3940 capita total listed Chile. 5 I0 I8 I.0 China . 22 24 10 5G 3.1 Colombia. 6 10 18 1 .0 Costa Rica ...... 12 0.7 8 Cuba. 7 10 2 I 1.2 Czechoslovakia 6 2 I0 29 î.6 Denmark. 7 3 20 38 2.2 Dominican Republic . . I n.a 10 Ecuador 1 10 12 0.7 Egypt . .9 3 10 23 1.3 Ethiopia. n.a. n.a. I0 Finland. n.a. ~1 10 France and Colonies . . 7S 23 112 6.3 Greece. 2 10 0.9 3 IO Guatemala . 10 l 2 0.7 Haiti. o.6 Honduras. n.a. I0 Hungary. n.a. n.a. Io Iceland. n.a. n.a. 8 Io India (before partition) . 27 24 6i 3.4 Iran. n.a. n.a. 10 Iraq. n.a. n.a. 1 taly. n.a. IO 10 Lebanon n.a. n.a. 10 Liberia. n.a. z.a. _o2 10 Luxemburg. n.a. n.a. 1 10 Mexico. 12 3 10 20 1.5 Netherlands and Colonies 54 7 10 72 4.0 New Zealand. IO 1 I0 31 I .7 11 Nicaragua. § 1 Io 10 o.6 Norway . I2 2 10 32 1.8 Panama n.a. 1<''O Paraguay. r.a. If, 7 0 Peru. 4 I6 0.9 Philippines. n.a. n.a. I 0 10.. Poland. n.a. 8 Il IO0 Portugal and Colonies 7 n.a. Roumania . n.a. n.a. 10 Salvador, El ...... I 1I0 1 2 0.7 Saudi Arabia ..... n.a. n.a. 10 Siam. n.a. n.a. 10 Southern Rhodesia. . . 2 14 o.8 Sweden. 26 6 50 2.8 Switzerland. 23 5 I0 49 2.7 Syria ...... n.a. n.a. 10 Transjordan. n.a. n.a. 10 Turkey. n.a. n.a. Union of South Africa . I4 2 I0 29 i.6 U.S.S.R. n.a. 64 Io United Kingdom and Colonies 213 10 280 53 I0 15.7 United States of America 209 156 3 378 2 1.2 Uruguay. 5 5 10 21 1.2 Venezuela. 10 5 I0 25 1.4 Yemen. n.a. n.a. 10 Yugoslavia. n.a. 3 1 0 n.a. means not available. § means less than 25 million dollars. * means less than 250 million dollars. t means less than 12 /2 dollars per capita. SOURCE: Column (i): Figures taken from U.N. Monthly Bulletin of Statistics, April and June 1947; League of Nations Review of World Trade, .938, and Network of World Trade, 1942. Column (2): Figures taken from. Table A. Column (3): Figures based upon population data shown in Table A. - 69) -

Part III. - ENCLOSURES

ENCLOSURE 1

EXTRACTS FROM THE INTERIM REPORT OF THE SECOND SESSION TO THE FIFTH SESSION OF THE ECONOMIC AND SOCIAL COUNCIL (9 JuIy 1947)

RECOMMENDATIONS OF THE PRE PARATORY COMMITTEE. 1. Annotated Draft Agenda and Convention for siderable period the coming into force of the the Conference on Trade and Employment. Charter and the establishment of the Organi- zation. On the other hand, the Preparatory The Preparatory Committee adopted the Committee has given consideration to the need topics suggested by the Economic and Social for providing a reasonable interval between Council in its resolution as the substance of the end of the current session of the Committee its agenda for the preparation of the draft and the convening of the World Conference in Charter for an International Trade Organiza- order to provide as much time as possible for tion. As at present drafted the Charter governments which did not participate in the includes chapters under the following headings: Preparatory Committee to study the work of Employment and Economic Activity, the Second Session. In this connection the Economic Development, Preparatory Committee bas taken account of General Commercial Policy, the fact that the full reports of the First Ses- Restrictive Business Practices, sion and of the Drafting Committee have been Inter-governmental Commodity Arrange- in the hands of all Members of the United ments, Nations for many months and that arrange- together with provisions relating to organiza- ments have been made for such Members to tion, membership and other miscellaneous receive all documents of the Second Session matters. as its work proceeds. The Preparatory Committee recommends In all the circumstances the Committee feels that these headings should be adopted by the it is undesirable to delay the convening of the Conference on Trade and Employment as the Conference much beyond the middle of No- substance of its agenda and that the relevant vember. Accordingly, the Preparatory Com- chapters of the draft Charter should be taken mittee recommends that the Conference should as the principal working-paper under each be convened on 21 November I947. The Pre- heading. As additional annotations to the paratory Committee considers that the Con- agenda there will also be available the Reports ference should be held in a suitable place in the of the First and Second Sessions of the Prepar- Western Hemisphere, and therefore recom- atory Committee and of the Drafting Commit- mends, in view of the cordial and generous tee. The three Reports will indicate to the invitation extended by the Government of World Conference the development of the dis- Cuba, that the Conference be held in Havana, cussions leading to the text of the draft Charter if practicable. submitted by the Preparatory Committee. 3. Invitation of non-Members of the United 2. Date and Place of the Conference on Trade Nations to thé Conference. and Employment. The Preparatory Committee -recommends In arriving at a recommendation as to the that, subject to the resolution regarding Spain date on which the Conference should be con- adopted by the General Assembly on I2 De- vened the Preparatory Committee has been cember 1946, those States non-Members of the much impressed with the desirability of holding United Nations which have an appreciable the Conference as soon as possible after the interest in world trade should be invited to the termination of the work of the Preparatory Conference on Trade and Employment. It Committee. It was felt by the Committee therefore recommends that the following States that the impetus achieved in the preparation non-Members should be invited: Albania, for an International Trade Organization should Austria, Bulgaria, Eire, Finland, Hungary, be maintained, and that any substantial delay Italy, Portugal, Roumania, Switzerland, Trans- would have the effect of postponing for a con- jordania and the Yemen. - 70 - The Preparatory Committee recommends to draw the attention of the Economic and further that the Economic and Social Council Social Council to the position of territories should male provision for the attendance of under. the sovereignty of a Member of the persons qualified to represent the appropriate United Nations which are self-governing in authorities in Germany, Japan and Korea. matters provided for by the draft Charter and The Preparatory Committee, having in mind for that reason, in the opinion of the Prepara- specifically the position of the Governments of tory Committee, ought to be invited to parti- Burma, Ceylon and Southern Rhodesia, wishes cipate in the work of the Conference.

THE GENERAL AGREEMENT ON TARIFFS AND TRADE 1. Considering that the task of the World 2. The governments represented at the Se- Conference would be facilitated if concrete cond Session of the Preparatory Committee action were taken by the principal trading are now engaged in the negotiations foreseen nations to enter into reciprocal negotiations in the above-mentioned Resolution. These directed to the substantial reduction of tariffs negotiations have not yet been completed. and to the elimination of preferences on a mutually advantageous basis, the Prepara- 3. It is expected that the concessions result- tory Committee adopted a Resolution at its ing from these negotiations, together with First Session regarding the carrying out of such other provisions as may be appropriate, tariff negotiations under its sponsorship in will at the end of the Second Session be incor- connection with, and as part of, the Second porated in a General Agreement on Tariffs and Session. Trade. - 71

ENCLOSURE 2

RESOLUTIONS ADOPTED AT THE FIFTH SESSION OF THE ECONOMIC AND SOCIAL COUNCIL RELATING TO THE INTERIM REPORT OF THE SECOND SESSION OF THE PREPARATORY COMMITTEE

Resolutions adopted 28 July 1947. A genda of the Conference. .the United Nations Conference on Trade and Employment, and The Economic and Social Council takes note of the Interim Report of the Second Session of 1-Having noted that the invitation of the Cuban the Preparatory Committee of the United Government to hold the United Nations Con- Nations Conference on Trade and Employ- ference on Trade and Employment in Havana ment and approves the recommendations made is accompanied by an offer of conference faci- therein concerning the agenda of the United lities and financial assistance to meet the addi- Nations Conference on Trade and Employment. tional costs to the United Nations of holding the Conference away from Headquarters. Date and Place of the Conference. The Economic and Social Council having RESOLVES that the United Nations Confer- considered the Resolution of the Preparatory ence on Trade and Employment should be Committee concerning the date and place of held at Havana, Cuba, on 2I November I947.

Resolutions adopted 1 August 1947. Voting Rights at the Conference. in Germany, Japan and Korea be invited to send qualified representatives to the United The Economic and Social Council having Nations Conference on Trade and Employment considered the Resolution of the Preparatory in a consultative capacity. Committee relating to the invitations to the United Nations Conference on Trade and Em- ployment, Invitation to the Governments of Burma, Ceylon and Southern Rhodesia. RESOLVES that voting rights at the Confer- ence shall be exercised only by Members of the The Economic and Social Council having United Nations attending the Conference. noted that it became clear during the negotiations which have taken place in Geneva during the Second Session of the Preparatory Com- Invitations to States not Members of the United mittee that Burma, Ceylon and Southern Rho- Nations. desia, although under the sovereignty of a The Economic and Social Council having Member of the United Nations, possess full considered the Resolution of the Preparatory autonomy in the conduct of their external Committee relating to the invitation to the commercial relations, and that the Preparatory Conference of States not Members of the United Committee considers that such separate cus- Nations, toms territories should be invited to participate in the work of the Conference, RESOLVES that invitations should be sent to the following States not Members of the United RESOLVES that invitations should be sent, Nations which have an appreciable interest through the Government of the United King- in world trade to participate in the work of the dom, to the Governments of Burma, Ceylon United Nations Conference on Trade and Em- and Southern Rhodesia to participate in the ployment: Albania, Austria, Bulgaria, Eire, work of the United Nations Conference on Finland, Hungary, Italy, Pakistan, Portugal, Trade and Employment. Roumania, Switzerland, Transjordania and the Yemen. Invitation to the Government of the Indonesian Republic. Invitation to the Allied Control A authorities in Germany, Japan and Korea. The Economic and Social Council, recognizing that the Indonesian Republic enjoys in fact The Economic and Social Council autonomy in the conduct of its external com- RESOLVES that the Allied Control Authorities mercial relations. - 72 - Recognizing further that the participation Invitations to Specialized A gencies and Other of the Government of the Indonesian Republic Organizations. will prornote the aims-of the Conference, The Economic and Social Council RESOLVES to send a direct invitation to the RESOLVES that invitations to be represented Government of the Indonesian Republic to at the Conference be sent to the Specialized participate in the United Nations Conference Agencies and other appropriate Inter-govern- on Trade and Employment. mental Organizations and Non-governmental Organizations in Category A. - 73 -

ENCLOSURE 3

SUB-COMMITTEES

Tariff Negotiations Working Party Charter Steering Committee Tariff Agreement Committee Consultative Committee (with non-governmental organizations) Sud-Committee on Chapter III Sub-Cominittee on Chapter IV Working Party on Technical Articles Sub-Committee on Article 16, paragraph 5 Sub-Committee on Article 16, paragraph 6 Sub-Committee on Article 17 Sub-Committee on Article 18 Sub-Committee on Article I9 Sub-Committee on Article 20, paragraph 7 Sub-Committee on Article 21, old paragraph 3, new paragraph 2 Sub-Committee on Article 21, paragraph 2 Sub-Committee on Articles 14, 15, 24, 34, 35 and 38 Sub-Committee on Articles 25 and 27 Sub-Committee on Articles 26, 28 and 29 Sub-Committee on Article 30 Sub-Committee I on State Trading (Articles 31 and 32) Sub-Committee Il on State Trading (Article 33) Sub-Committee on Article 36 Sub-Committee I on Chapter VI Sub-Committee II on Chapter VI Sub-Committee on Chapter VII Working Party on Articles 48 and 49 Chapter VII Working Party on Definitions Sub-Committee on Chapters I, II and VIII Working Party on Article 1 Sub-Committee on Voting Legal Drafting Committee

The numbers of Chapters, Articles and paragraphs indicated above are those of the New York Drafting Committee's Report (E/PC/T/34). The comparable numbers in the present text are indicated in the second part of Enclosure 4. - 74 -

ENCLOSURE 4

The following pages contain lists to aid in identifying comparable provisions in the present draft of the Charter and in the draft prepared by the New York Drafting Committee (E/PC /T /34). These lists are intended to indicate changes in form between the two drafts but do not purport to show all changes in substance. The first of these two lists (pages 75-81) sets forth in sequence, in the left-hand column, the numbers of provisions in the Geneva draft and indicates in the right-hand column the comparable Chapters and Articles in the New York draft. Paragraphs also are listed whenever there have been changes relating to individual paragraphs. The second list (pages 82-87) indicates in a similar manner the numbers of the provisions in the New York draft in the left-hand column, and the number of corresponding provisions in the Geneva draft in the right-hand column. -- 75 -

1. REFERENCE LIST TO AID IN LOCATING THE PROVISIONS IN THE NEW YORK DRAFT CHARTER WHICH ARE COMPARABLE WITH PROVISIONS IN THE DRAFT CHARTER PREPARED BY THE SECOND SESSION Geneva Draft New York Draft CHAPTER I CHAPTER I Article I Article I CHAPTER II CHAPTER II1 Article 2 Paragraph I Article 3, paragraph 1 2 Paragraph » paragraph 2 Paragraph 3 } Article 3 Article 4 Article 4 Article 5 Article 5 Paragraph 1 Article 6, paragraph 1 Paragraph 2 No corresponding text Article 6 Paragraph i, preamble A article 8, preamble Paragraph I a) )) , paragraph (a) Paragraph I ~b) " , paragraph (b) Paragraph 2 No corresponding text Article 7 Article 7 CHAPTER III CHAPTER IV Article 8 First clause Article 10, first part Remainder of the Article Article 9 Article 9 Article 10, last part Article 10 Article 11 Article 11 Paragraph I Article I2, paragraph 1 Paragraph » , paragraph 2 Paragraph 3 Article 61, paragraph (c), in part Paragraph 4 No corresponding text Article 12 No corresponding text Article 13 Paragraph I Article 13, paragraph 1 Paragraph n , paragraph 2 (a) Paragraph 3 J) , paragraph 2 (b) Paragraph 4 (a) , paragraph 2 (c) Paragraph 4 (b) No corresponding text Paragraph 4 (c) No corresponding text Paragraph 5 No corresponding text Article 14 No corresponding text Article 15 No corresponding text CHAPTER IV CHAPTER V Article I1 Paragraph I Article 14, paragraph 1 Paragraph 2, preamble " , paragraph 2, preamble Paragraph -2 (a) ») paragraph 2 (a) (ii) Paragraph > , paragraph 2 (a) (i) Paragraph 2 (c) » , paragraph 2 (b) Paragraph 2 (d) ,paragraph 2 (c) Paragraph 3 No corresponding text Article 17 Paragraph I, preamble Article 24, paragraph 1, preamble Paragraph I (a) >> , paragraph 1 (b) Paragraph i (b) , paragraph 1 (c) Paragraph i (c) No corresponding text Paragraph (d) No corresponding text Paragraph 2 Article 24, paragraph 3, first and second sentences Paragraph 3 >> , paragraph 3, last sentence - 7b -

Geneva Draft New York Draft CHAPTER IV (cont'd) CHAPTER V (cont'd) Article 18 Paragraph 1 .Article '5, paragraph Paragraph 2 " paragraph 3, first sentence Paragraph 3 " paragraph 3, second sentence Paragraph 4 (a) "> paragraph 4 Paragraph 4 (b) "> paragraph 3, Proviso Paragraph 5 paragraph 5 Article 19 Article 15, paragraph 4 Aarticle 20 Paragraph1 I Article 25, paragraph 1 Paragraph 2, preamble » ,paragraph 2, preamble Paragraph 2 (a) » , paragraph 2 (b) Paragraph 2 (b) » , paragraph 2 (c) Paragraph 2 (c) preamnble paragraph 2 (e), preamble Paragraph 2 (c) (i) » paragraphsh 2 (e) (i) Paragraph 2 c) tiii) * ,paragraph 2 (e) (ii) Paragraph No corresponding provision Paragraph 3 Article 26, paragraph 7 Article 21 Paragraph I A rtiVee 26, paragraph I, second sentence Paragraph 2 (a) o , paragraph 2 (a Paragraph 2 paragraphs 2 (b> Paragraph 3 a) >) paragraphs 6 Paragraph 3 b) paragraph 3 (e), first sentence, and paragraPh1 4, first sentence Paragraph 3 (c) (i) paragraph 3 (e), last sentence Paragraph 3 (c) (iii) paragraph 2 (c) Paragraph 3 C)(iii) .n ,paragraph 4, last sentence Paragraph 4 da) » paragraPh 3 (a) Paragraph 4 (b) » , paragraph 3 (b) Paragraplh 4 (c) paragraph 3 c) Paragraph 4 (d) paragraph 3 (d) Paragraph 4 (e) No corresponding text Paragraplh 5 Article 26, paragraph 5 Article 22 Paragraph 1 Article 27, paragraph 1 Paragraph 2, preamble » ,paragraph 2, preamble; and paragraph 2 (a) Paragraph 2 (a) paragraph 2 (b) Paragraph (b) paragraphs 2 (c) Paragraph 2 (c) , paragraph 2 (d) Paragraph 2 (I) n ,paragraph 2 (e) Paragraph 3 .. paragraph 3 Paragraph 4 » ,paragraph 4 Paragraph 5 » ,paragraph 5 Article 23 Paragraph I (a) No corresponding text Paragraph I (b) Article 28, paragraph 1 (c) Paragraph I :c) and (a:) No corresponding text Paragraph 2 No corresponding text Paragraph 3 ca) .Artie 28, paragrap1 i (e) Paragraph 3 paragraph 2 Paragraph 3 1 , paragraph 3 Paragraph 4 n paragraph 1 (d) Paragraph 5 w a) " paragraph 1 (a) Paragraph 5 b) No corresponding text Aeticle 24 Paragraph 1 Article 29, paragraph 1 Paragraph 2 , paragraph 6, in part Paragraph 3 No correspondingo text Paragraph 4 Article 29, paragraph 2 Paragraph 5 No corresponding text Paragraph 6 Article 29, paragraph 3 Paragraph 7 (a) n , paragraphs 5 Paragraph 7 (b) No corresponding text Paragraph 8 Article 29, paragraph 4 Paragraph g No corresponding text Article 25 Article 30, paragraph 1 - 77-

Geneva Draft New York Draft CHAPTER IV (cont'd) CHAPTER V (cont'd) Article 26 Paragraphs 1 and 2 Article 30, paragraph 2 (") Paragraph 3 » , paragraphs 2 (b) Paragraph 4 No corresponding text Article 27 Paragraph 1 Article 30, paragraphs 4 Paragraph )) , paragraph 4 (a) Paragraph 3 » , paragraph 4 (b) Article 28 A rticle 30, paragraph 5 Article 29 Article 30, paragraph 6 Article 30 Paragraph I (a), (b) Article 31, paragraph 1 Paragraph I (c) No correspuliding text Paragraph A rticle 31, lxaragraph 2 Article 31 Paragraph A rticle 32, paragraph 1 Paragraph No corresponding text Paragraph 3 No corresl)onring text Paragraph 4 Article 32, paragraph 1 (b), last part » Paragraph 5 , paragraph 3 Paragraph 6 )) , paragraph 4 Paragraph 7 No corresponding text Article 32 Paragraph 1 Article 16, paragraph 1, first and second sentences Paragraph )) ,paragraph 2 Paragraph 3 paragraph 3 Paragraph 4 paragraph 4 Paragraph 5 paragraph 5 Paragraph 6 )) ,paragraph 6 Paragraph 7 )) ,paragraph 1, last sentence Article 33 Paragraph I Article 17, paragraph 1 Paragraph 2 » , paragraph 2 Paragraph 3 paragraph 3 Paragraph 4 paragraph 4 Paragraph 5 » , paragraph 3 Paragraph 6 No corresponding text Article 34 Paragraph I A rticlc i8, paragraph 1 Paragraph 2 >) ,paragraph 2, preamble » Paragraph 3 , paragraph 2 (a) Paragraph 4 )) ,paragraph 2 (b) Paragraph 5 ~a), (b) )) ,paragraph 2 (c) Paragraph 5 c), (d) No corresponding text Paragraph 6 A rticle i8, paragraph 2 (d) Article 35 Paragraph I Article I9, paragraph 1 Paragraph )» , paragraphs 2 Paragraph 3 No corresponding text Paragraph 4 Article I9, paragraph 3 Paragraph 5 n , paragraph 4 Article 36 Article 2o Article 37 Paragraph i A article 21, paragraph 1 Paragraph 2 » , paragraph 3, first part Paragraph 3 (a), (b) , paragraph 2 Paragraph 3 (c) No corresponding text Article 38 Paragraph I Article 22, paragraph 1 (a), (b) Paragraph ,paragraph 1, second part Paragraph 3 paragraph 2 Paragraph 4 paragraph 3 Paragraph 5 » ,paragraph 4 Paragraph 6 ») , paragraph 5 Paragraph 7.' ) ,paragraph 6 Article 39 Article 23 -- 78 - Geneva Draft New York Draft CHAPTER IV (cont'd) CHAPTER V (cont'd) articlee 40 Paragraph 1 Article 34, paragraph 1 Paragraph 2 *) , paragraph 2 ParagraPh 3 il , paragraph 3 Paragraph 4 No corresponding text Aarticle 41 Aarticle 35, paragraph 1 Article 42 Paragraph 1 Aarticle 38, paragraph 1 Paragraph 2 , paragraph 2 Paragraph (a) n , paragraph 3 Paragraph 3 (b) No corresponding text Paragraph 3 (c) No corresponding text Paragraph 4 Article 38, paragraph 5 Article 43 Preamble Article 37, Preamble Paragraph I, sub-paragraph (a) sub-paragraph (a) Paragraph 1, sub-paragraph (b) sub-paragraph (b) Paragraph I, sub-paragraph (c) sub-paragrapl (f) Paragraph J, sub-paragraph sub-paragraph (g), Article 25, 2 (f) Paragraph I, sub-paragraph ci) sub-paragraph (h) Paragraplh I, sub-paragraph te) sub-paragraph (i) Paragraph I, s ib-paragraph sub-paragraph (j) Paragraph I, sub-paragraph (h) Article 25, paragraph 2 (d) Paragraph I, sub-paragraph (i) No corresponding text Paragraph II Article 25, paragraphs 2 (i)

CHAPTER V CHAPTER VI Article 44 Paragraph I Aarticle 39, paragraph 1 Paragraph 2, preamble » , paragraph 2, preamble Paragraph 2 (a) No corresponding text Paragraph 2 (b) Article 39, paragraph 2 (a.) Paragraph 2 (c) , paragraph 2 (b) Paragraph 3 (an to (f) , paragraph 3 (a) to (j) Paragraph 3(g4 No corresponding text Paragraph 4 No corresponding text Article 45 Paragraph I A rticle 40, paragraph I (a) Paragraph paragraph I (b) Paragraph 3 paragraph I (b) Paragraph 4 " paragraph I (c) Paragraph 5 paragraph I (d) Paragraph 6 paragraph I (e) Paragraph 7 >1 paragraph 1 (a), first sentence Paragraph S paragraph 2 agx), second sentence Paragraph 9 paragraph Paragraph IO paragraph 2 (c) Paragraph II paragraph (d) Article 46 Paragraph I (a) Article 41, paragraph 1 (a) Paragraph I (a) (i) » paragraph 1 (a) (i) 1 Paragraph I (a) (ii) O , paragraph (a) (ii) Paragraph I ta) (iii) No corresponding text Paragraph (b) Article 41, paragraph 1 (b) Paragraph » , paragraph 2 Article 47 Paragraph I Article 42, paragraph I (a) Paragraph 2 » paragraph 2 (a) Paragraph 3 paragraph 2 (c) (i) I Paragraph 4 " paragraph (b) Paragraph 5 ii paragraph 2 (d) Paragraph 6 paragraph 2 (e) Article 48 Article 43 Article 49 Article 44 Article 50 No corresponding text - 79 - Geneva Draft New York Draft CHAPTER V (cont'd) CHAPTER VI (cont'd) Article 51 Paragraph 1 (a) Article 45, paragraph 1 (a) Paragraph 1 (b) No corresponding text Paragraph 2 Article #5, paragraph 2

CHAPTER VI CHAPTER VII Article 52 Article 46 Article 53 Paragraph Article 60, paragraph 1 Paragraph 2 f Paragraph 3 Article 52, paragraph (c) Article 54 Paragraph (a A article 47, paragraph (a) Paragraph (b) » , paragraph (b) Paragraph (c) , paragraph (c) Paragraph (d) paragraph (d) Paragraph (e) )) , paragraph (e) Paragraph (f) No corresponding text Article -5 Article 48 Article 56 Aarticle 49 Article 57 Paragraph (a) Article 5i, paragraph (a) Paragraph (b) ,paragraph (b) Paragraph (c) ,paragraphs (c) and (d) Paragraph (d) ,paragraph (e) Paragraph (e) ,paragraph (g) Paragraph A rticle 58 and Article 51, paragraph (f) Article 58 Paragraph (a) No corresponding text Paragraph (b) No corresponding text Paragraph Article 60, paragraph 3 Paragraph No corresponding text Paragraph (a) No corresponding text Paragraph (b) No corresponding text Paragraph No corresponding text Paragraph Article 53, paragraph (a) Article 59 Paragraph (a) Article 52, paragraph (a) Paragraph (b) » , paragraph (b) Paragraph No corresponding text Article 60 Paragraph (a) Article 53, paragraph (b) and Article 57 (f) Paragraph (b) paragraph (c) Paragraph (c) paragraph (d) Paragraph (d) paragraph (e) Article 61

Paragraph Article 54, paragraph 1 Paragraph 2 paragraph 2 Paragraph i3 paragraph 3 Paragraph 4 ., paragraph 4 Paragraph 5 paragraph 5 Paragraph 6 paragraph 6 Paragraph 7 paragraph 7 Paragraph 8 paragraph 8 Paragraph 9 Article ,55, last sentence

Article 62 - Article 55, all but last sentence Article 63 Article 56 Article 64 Paragraph (a) Article 50, paragraph 2 Paragraph (b) " paragraph 1 (b) Paragraph (c) "> paragraph 1 (a) Article 65 Article 57 - So - Geneva Draft New York Draft CHAPTER VI (cont'd) CHAPTER VII (cont'd) Article 66 Article 60, paragraph 2 Article 67 Paragraph I (a) Article 59, paragraphs (b), second par, Paragraph I cb) No corresponding text Paragraph I (c) Article 59, paragraph (a), second part; Article 45, paragraph1 (b) Paragraph 2 , paragraph (a), first part; Article 45, paragraph 1 (b) Paragraph 3 paragraph (b), first part; Article 45, paragraph I (b) and Art cke 37, .aragraph (j) CHAPTER VII CHAPTER VIII Article 68 Paragraph I Aarticle 2, paragraph 1 Paragraph 2 » , paragraph 2 Paragraph 3 No corresponding text Paragraph 4 No corresponding text Paragraph 5 Article 2, paragraph 3 Article 69 Article 61 Article 70 Article 62 Article 7I Article 63 Article 72 Article 64 Article 73 Article 65 Article 74 Paragraph I Article 66, paragraph 1, first sentence Paragraph 2 " paragrahi 2 Paragraph 3 paragraph 3 Paragraph 4 paragraph 6 Paragraph s paragraph i1 second sentence Paragraph 6 paragraph 7 Paragraph 7 » paragraph 8 Article 75 Article 68 Article 76 Article 69 Article 77 Article 70 Article 78 Article 71 Article 79 Articles 72 and 74 Article 80 Article 73 Article 81 Article 67 Article 82 Paragraph I Article 79, paragraph I; Article 78, paragraph i Paragraph 2 nJ paragraph 2, first sentence Paragraph 3 " paragraph 2, second sentence Article 83 Paragraph i1 Article 80, paragraph 1, first sentence; Article 78, paragraph 2 Paragraph 2 » , paragraph 1, second sentence Paragraph 3 » , paragraph 2 Article 84 Article 81 Article 85 Article 82 Article 86 Article 83 Article 87 Article 84 Article 88 Article 87 CHAPTER VIII CHAPTERS V and VIII, in part Article 89 Article 35, paragraph 2, first sentence Article 90 Article 35, paragraph second sentence Paragraph I Article 86, paragraph 2, first sentence 2, Paragraph 2 Article 86, paragraph second sentence Paragraph 3 Article 86, paragraph 2, third sentence Paragraph 4 Article 35, paragraph third and fourth sentences - 81 - Geneva Draft New York Draft CHAPTER VIII (cont:d) CHAPTERS V and VIII in part (cont'd) Article 91 Paragraph I A rticle 86, paragraph 4 Paragraph No corresponding text Paragraph 3 No corresponding text Paragraph 4 No corresponding text Paragraph 5 No corresponding text Article 92 Paragraph I Article 86, paragraph 1 Paragraph No corresponding text Paragraph 3 No corresponding text Paragraph 4 No corresponding text CHAPTER IX CHAPTERS V and VIII in part Article 93 Article 36 (no text previously) A article 94 Paragraph (a) A rticle 42, paragraph 2 (c) (i) Article 37, paragraphs (c), (d), (e); Article 45, Paragraph (b) paragraph 1 (b) Article 59, paragrapla (c) Paragraph (c) Article 37, paragraph (k) Article 95 Article 85 Article 96 No corresponding text Article 97 Article 89 Article 98 Paragraph I Aarticle 88, paragraph 2 Paragraph 2 » , paragraph 3 Paragraph 3 No corresponding text Article 99 Paragraph I Article 88, paragraph 4 Paragraph 2 No corresponding text Paragraph 3 Article 88, paragraph 5

Article 100 Article 88, paragraph 1 - 82 -

II.

REFERENCE LIST TO AID IN LOCATING THE PROVISIONS IN THE DRAFT CHARTER PREPARED BY THE SECOND SESSION WHICH ARE COMPARABLE WITH THE PROVISIONS IN THE NEW YORK DRAFT CHARTER

New York Draft Geneva Draft CHAPTER 1 CHAPTER I Article 1 Article 1 CHAPTER II No corresponding chapter Article 2 Paragraph 2 Article 68, paragraphs 1 Paragraph "~ , paragraph 2 Paragraph 3 , paragraph 5 CHAPTER III CHAPTER II Article 3 Article 2 Article 4 Article 3 Article 5 Article 4 Article 6 A rticle 5, paragraph 1 Article 7 Article 7 Article 8 A article 6, paragraph 1 CHAPTER IV CHIAPTER III Article 9 Article 8, second part Article 10 First part Article 8, first part Second part Article 9 Article iI Article 10 Article 12 Paragraph I Article 11, paragraph 1 Paragraph " , paragraph 2 Paragraph 3 No corresponding text Article 13 Paragraph I Article I3, paragraph I " 2 Paragraph 2 (a) paragraph Paragraph (b) "I paragraph Paragraph 2 (c) paragraph 4 (a) CHAPTER V CHAPTER IV

Article 14 Paragraph I Aarticle paragraph I Paragraph 2, preamble paragraph preamble Paragraph 2 paragraph (a) (i) 2, b) Paragraph 2 paragraph (a) (a) (ii) 2 Paragraph 2 (b) paragraph (c) Paragraph 2 (c) paragraph (d) Article 15 Paragraph 1 No corresponding text Paragraph 2 Article 18, paragraph 1 Paragraph 3, first sentence , paragraph 2

» Paragraph 3, second sentence , paragraph 3 Paragraph 3, ,proviso )» , paragraph 4 (b) Paragraph 4 1 paragraph 4 (a) and Article I9 Paragraph 5 Il , paragraph 5 Article I6, Paragraph 1, first and second sentences Article 32, paragraph 1 Paragraph 1, last sentence paragraph 7 Paragraph 2 ,paragraph 2 3 Paragraph 3 Il ,paragraph Paragraph 4 ,paragraph 4 Paragraph 5 ,paragraph 5 Paragraph 6 ,paragraph 6 - 83 - New York Draft Geneva Draft CHAPTER V (cont'd) CHAPTER IV {cont'd) Article I7 Paragraph I Article 33, paragraph I Paragraph , paragraph Paragraph 3 l' , paragraph 3 Paragraph 4 1) , paragraph 4 Paragrapli 5 II paragraph 5 Paragraph 6 No corresponding text Article 18 Paragraph I Article 3-, paragraph I Paragraph 2, prcanible paragraph 2 Paragraph 2 (a) paragraph 3 Paragraph "I 4 "I paragraph Paragraph 2 (d) 1) paragraph 5 (a) and (b) Paragraph _ (cl) paragraph 6 Article I9 Paragraph I Article 35, paragraph I Paragraph paragraph 2 Paragraph 3 paragraph 4 Paragraph 4 paragraph 5 Article 20 Article 36 Aarticle 21 Paragraph I Article 37, paragraphs 1 Paragraph 2 » , paragraph 3 (a) and (b) Paragraph 3, first part o paragraph 2 Paragraph 3, second part No correspoliding text Article 22 Paragraph i, preamble, (a) + (b) Article 38, paragraph I Paragraph I, last sub-para-raph " paragraph Paragraph 2 paragraph 3 Paragraph 3 p;aragraph 4 Paragraph 4 Article 39 paragraph 5 Paragraph 5 paragraph 6 Paragraph 6 paragraph 7 Article 23 Article 39 Article 24 Paragraph 1, preamble Article I7, paragraph 1, preamble Paragraph 1 (a) No corresponding text Paragraph 1 (b) Article 17, paragraph1 (a) Paragraph 1 (c) » paragraph 1 (b) Paragraph 2 No corresponding text Paragraph 3, first and second sentences Article 17, paragraph 2

» Paragraph 3, last sentence , paragraph 3 Article 25 Paragraph Article 20, paragraph I Paragraph 2, preamble "c paragraph 2, preamnble Paragraph 2 (a) Article 43, paragraph 'I Paragraph 2 (b) Article 20, paragraph 2 (a) Paragraph 2 (c) paragraph 2 (b) Paragraph 2 (d) Article 43, paragraph I (k) Paragraph 2. (e) Article 20, paragraph 2 (c) (i) and (ii) Paragraph 2 (f) Article 43, paragraph I (,1) Article 26 Paragraph 1, first sentence No corresponding text Paragraph 1, second sentence Article 2I1 paragraph 1 Paragraph 2 (a) » , paragraph 2 (a) Paragraph 2 (b) " , paragraph 2 (b) Paragraph 2 (c) » paragraph 3 (c) (ii) Paragraph 3 (a) » , paragraph 4 (a) Paragraph 3 (b) " , paragraph 4 (b) Paragraph 3 (c) II paragraph 4 (c) Paragraph 3 (d) , paragraph 4 (d1) Paragraph 3 (e) , paragraph 3 (b) and (c) (i) Paragraph 4 , paragraph 3 (b) and (c) (iii) Paragraph 5 , paragraph 5 Paragraph 6 paragraph 3 (a) Paragraph 7 Article 20, paragraph 3 84 - New York Dratt Geneva Draft CHAPTER V (cont'd) CHAPTER IV (cont'd) Article 27 Paragraph I Article 22, paragraph I Paragraph (a) paragraph 2, preamble Paragraph 2 (b) paragraph 2 (a) Paragraph 2 (c) paragraph 2 (b) Paragraph 2 (d) paragraph 2 (c) Paragraph 2 (e) '' paragraph 2 (d) Paragraph " paragraph 3 Paragraph 4 " paragraph 4 Paragraph 5 paragraph 5 Article 28 Paragraph I (a) Article 23, paragraph 5 (a) Paragraph I (b) No corresponding text Paragraph I No corresponding text Paragraph I Article 23, paragraph 4 Paragraph I (e) '' , paragraphs I (b) and 3 (a) Paragraph 2 '' , paragraph 3 (b) Paragraph 3 " , paragraph 3 (c) Article 29 Paragraph I Article 34 paragraph I Paragraph 2 paragraph 4 Paragraph 3 " paragraph 6 Paragraph 4 " paragraph 8 Paragraph 5 " paragraph I (a) Paragraph 6 paragraph 2 Article 30 Paragraph I Article 25 Paragraph 2 (a) Article 26 paragraphs I and 2 Paragraph 2 (b) paragraph 3 Paragraph 3 Article 27, paragraph I Paragraph 4 (a) '' paragraph 2 Paragraph 4 (b) paragraph 3 Paragraph 5 Article 28 Paragraph 6 Article 29 Article 3I Paragraph Article 30, paragraph i (a) and (b) Paragraph '' , paragraph 2 Paragraph 3 No corresponding text Article 32 Paragraph I Article 3I, paragraphs I and 4 Paragraph 2 No corresponding text Paragraph 3 Article 3I, paragraph 5 Paragraph 4 '' , paragraph 6 Article 33 No corresponding text Article 34 Article 40 Article 35 Paragraph 2 Article 4I Paragraph 2, first sentence Article 89 Paragraph 2, second sentence Article 90, paragraph I Paragraph third and fourth sentences '' , paragraph 4 Article 36 Arlicle 93 Article 37 Preamble A rticle 43, preamble Paragraph (a) '' paragraph I (a) Paragraph (b) paragraph I (b) Paragraph (c) Article 94, paragraph (b) (i) Paragraph (d) '' paragraph (b) (ii) Paragraph (e) paragraph (b) (iii) Paragraph Article 43, paragraph I (c) Paragraph paragraph I (d) Paragraph '' paragraph I (e) Paragraph (i) paragraph I (f) Paragraph paragraph I (g) Paragraph (k) Article 94, paragraph (c) Article 38 Paragraph i Article 42, paragraph I Paragraph 2 '' , paragraph 2 Paragraph 3 '' , paragraph 3 (a) Paragraph 4 No corresponding text Paragraph 5 Article 42, paragraph 4 - 85 - New York Draft Geneva Draft CHAPTER VI CHAPTER V Article 39 Paragraph Articlc 44' paragraph 2 Paragraph 2, preamble " paragraph preamble Paragraph 2(a) " paragraph (b) Paragraph 2 (b) ". paragraph (c) Paragraph 3 (a) to (f) '' paragraph 3 (a) to (1) .Article 40 Paragraph I (a) Arlice 45, paragraph i Paragraph (b) paragraphs 2 and 3 Paragraph (c) paragraph 4 Paragraph (d) paragraph 5 Paragraph (e) paragraph 6 Paragraph 2 (a), first sentence paragraph 7 Paragraph (a), second sentence paragraph 8 Paragraph 2 (b) paragraph 9 Paragraph (c) paragraph IO Paragraph (d) paragraph i i Article 4I . article 46, except paragraph i (a) (iii) Article 42 Paragraph I (a) Aaticle 47, paragraph I Paragraph '' paragraph 4 Paragraph 2 (a) '' , paragraph 2 Paragraph (b) No corresponding text Paragraph (c) (i) Article 94, paragraph (a) Paragraph 2 (c) (ii) Article 47, paragraph 3 Paragraph (d) '' , paragraph 5 Paragraph (e) '' paragraph 6 Aarticle 43 Article 48 Article 44 Article 49 Article 45 Paragraph i (a) Article 51, paragraph i (a) Paragraph i (b) Article 67, paragraphs i (c), 2 and 3 and Article 94, paragraph (b) Paragraph 2 Article SI, paragraph 2 CHAPTER VII CHAPTER VI Article 46 Article 52 articlee 47 Article 54, paragraphs (a) to (e) Article 48 Article 55 Article 49 Article 56 A rticle 50 Article 64 Article 51 Paragraph (a) Article 57, paragraph i (a) Paragraph (b) '' ,paragraph I (b) Paragraph (c) '' , paragraph I (c) Paragraph (d) '' , paragraph i (c) Paragraph (e) ,paragraph i (d) Paragraph (f) '' , paragraph 2 and Article 60, paragraph (a) Paragraph (g) Article 51, paragraph i (e) Article 52 Paragraph (a) Article 59, paragraph I (a) Paragraph b) "i paragraph (b) Paragraph (c) A rticle 53, paragraph 3 Article 53 Paragraph (a) A rticle 65, paragraph 6 Paragraph (b) Article 6o, paragraph (a) Paragraph (c) '' paragraph (b) Paragraph (d) '' paragraph (c) Paragraph (e) '' paragraph (d) Article 54 Article 6r, paragraphs i to 8 Article 55 All but last sentence Article 62 Last sentence Article 61 paragraph 9 Article 56 Article 63 Article 57 Article 65 - 86 - New York Draft Geneva Draft CHAPTER VII (cont'd) CHAPTER VI (cont'd) Article 58 A article 57, paragraphs 2 Article 59 Paragraph (a), first part sentence Article 67, paragraph 2 Paragraph (a), second part sentence Article 67, paragraph i (c) Paragraph (a), last sentence No corresponding text Paragraph (b), first part Article 67, paragraph 3 Paragraph (b), second part Article 67, paragraph i (a) Paragraph (c) A rticle 9., paragraph (b) Article 60 Paragraph i Article 53, paragraphs i and 2 Paragraph 2 Article 66 Paragraph 3 Article 58, paragraph 2 CHAPTER VIII CHAPTERS VII, VIII and IX Article 6i Article 69 and Article II, paragraph 3 Article 62 Article 70 Article 63 Article 7I A rticle 64 Article 72 Article 65 Article 73 Article 66 Paragraph I, first sentence A rticle 74, paragraph i Paragraph I, second sentence paragraph 5 Paragraph 2 '' , paragraph 2 Paragraph .3 '' , paragraph 3 Paragraph 4 No corresponding text Paragraph 5 No corresponding text Paragraph 6 Article 74, paragraphs 4 Paragraph 7 , paragraph 6 Paragraph 8 paragraphs 7 Article 67 Article 81 Article 68 Article 75 Article 69 Art icle 76 Article 70 Article 77 Article 7I Article 78 Article 72 Article 79 Article 73 Article 80 Article 74 Article 79 Article 75 No corresponding text Article 76 No corresponding text Article 77 No corresponding text Article 78 Paragraph I Article 82, paragraph i, first sentence Paragraph 2 Article 83, paragraph i, first sentence Article 79 Paragraph I Article 82, paragraph i Paragraph 2 '' , paragraphs 2 and 3 Article 80 Article 83 Paragraph I '' , paragraph i, second sentence, and paragraph 2 Paragraph 2 '' , paragraph 3 Article 81 Article 84 Article 82 Article 85 Article 83 Article 86 Article 84 Article 87 Article 85 Article 95 Article 86 Paragraph i Article 92, paragraph i Paragraph 2, first sentence Article 90, paragraph i Paragraph 2, second sentence '' , paragraph 2 Paragraph 2, third sentence '' , paragraph 3 Paragraph 3 No corresponding text Paragraph 4 Article 9I, paragraph I Article 87 Article 88 - 87 - New York Draft Geneva Draft CHAPTER VIII (cont'd) CHAPTERS VII, VIII and IX (cont'd) Article 88 Paragraph i Article 100 Paragraph 2 Arice 98, paragraph I Paragraph 3 A rice 98, paragraph 2 Paragraph 4 A rice 99, paragraph I Paragraph 5 Article 99, paragraph 3 Article 89 Article 97

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Report of the Second Session of the Preparatory Committee of the United Nations Conference on Trade and Employment

CORRIGENDUM

The following corrections should be made; Page 16: line 6 of first column. The word "Any" should start a new paragraph, which should not be indented. Page 19: footnote relating to Article 19. This footnote should be deleted as the United Kingdom Delegation has withdrawn its reservation to Article 19. Page 21: paragraph 2(a) (ii) of Article 21. The words "due regard being paid ...... credits or resources." should not be indented. Page 24: paragraph 5 of Article 22. The words "under paragraph 2 of Article 18" should read "under paragraph 3 and 4 of Article :8". Page 24: paragraph 1 (a) of Article 23. The following words should be added at the end of the last sentence of this paragraph in. the French text after the word "dérogations" in order to render the French and English texts comparable: "afin de ne pas gêner la reprise des échanges multilatéraux." Page 62: Annex D. The title of this Annex should be changed to read: "LIST OF TERRITORIES REFERRED TO IN PARAGRAPH 2 (b) OF ARTICLE 16 AS RESPECTS THE UNITED STATES OF AMERICA".

United Nations Publications

Sales Number: 1947. Il. 4. Corrigendum 1.