31 May 1950 ENGLISH TARIFFS and TRADE ORIGINAL: ENGLISH/ FRENCH

RESTRICTED SPECIAL GATT/CP/62 GENERAL AGREEMENT ON 31 May 1950 ENGLISH TARIFFS AND TRADE ORIGINAL: ENGLISH/ FRENCH

CONTRACTING PARTIES DISCRIMINATORY ADMINISTRATION OF IMPORT RESTRICTIONS

STATEMENTS BY CONTRACTING PARTIES ON USE OF IMPORT RESTRICTIONS TO SAFEGUARD THEIR BALANCESTHEIR OF PAYMENTS Replies to GATT/CP/39

Paragraph 1 (g) of Article XIV of the General Agreement requires the Contracting Parties to report, not later than March 1, 1950, on any action still being taken by the contracting parties under the exceptional transitional period arrangements of Article XIV for non-observance of the rule of non-discrimination in the application of import restrictions which they apply under Article XII to safeguard their balances of payments. To prepare for this reports the Secretariat issued a questionnaire on 7 October 1949 (GATT/CP/39) to ascertain which of the contracting parties were still taking action under these arrangements and to obtain details of their restrictions and data concerning their foreign trade. The replies to the Secretariat's enquiry were examined at the Fourth Session of the Contracting Parties, which was held in Geneva from 23 February to 3 April 1950. The resulting report has been printed (Sales No. GATT 1950-1) and copies may be obtained from the office of ICITO, Palais des Nations, Geneva. On the completion of the report the Contracting Parties decided that the replies to the Secretariat's enquiry should be issued in a restricted document. Accordingly, the replies are reproduced in full in this document. GATT/CP/62 Page 2 TABLE OFCONTENTS Page THE ENQUIRY ISSUED BY THE SECRETARIAT (GATT/CP/39) . . 3 REPLIES FROM CONTRACTING PARTIES WHICH WERE NOT IMPOSING IMPORT RESTRICTIONS FOR BALANCE-OF- PAYMENT REASONS

Belgium...... Syria. .. . 8 BelgiumUnited States. . . 10 REPLIES FROM CONTRACTING PARTIES IMPOSING RESTRICTIONS FOR BALANCE-OF-PAYMENT REASONS

Australia ...... 11

Brazil ...... 27

Canada. . . . . 31

. . 49

Chile. .. . . 52 . Czechoslovakia. . 56 . Denmark . . . 71

Finland . . . . . 81 Ceylon... . . 90

. 98 . India. .. . 105 . . 115 . Netherlands . . . 122

. Now Zealand . . . 131 France.. . 150 . . 157 Greece.. . Southern Rhodesia.. 168

. . 173 Italy. U. of South. Africa.. . 175 United Kingdom. 5 182 (Note: The Roman numerals in the margin of the replies Norway indicate. the... questions to which subsequent paragraphs relate. The replies to Question 1 have boon .. were an Pakistanin cases where affirma- omitted they merely Sweden tion)..... GATT/CP/62 Page 3 ENQUIRY ISSUED TO CONTRACTING PARTIES ON 7 OCTOBER 1949 (GATT/CP/39)

I. Do you restrict the importation of merchandise in order to safeguard your balance of payments under the provisions of Article XII? Note: In replying to this question, as well as to others indicated below contracting parties should boar in mind that import restrictions include those made effective either directly or indirectly through state trading operations or otherwise. The expression "state-trading operations" is meant to include the operation of enterprises, wherever located, to which the contracting party has granted, formally or in effect, exclusive or special privileges. The answer to this question, as well as to the others indicated below, should also take into account restrictions operated by means of exchange controls if those controls are used as a substitute for, or a supplement to import restrictions. II. If so, describe the general system of import restrictions to safeguard your balance of payments which is now in effect. Note: This description should be sufficiently detailed to give an accurate general picture of the nature of the controls used and the criteria by which the use of such controls is governed. Among other things, the description should indicate the specific techniques used, e.g., global quotas, quotas allocated by specific countries or groups of countries, or other techniques. Where your system of import controls differs for different classes of commodities or distinguishes among groups of countries, the nature of such differences and of such distinctions should be adequately described. Where your description indicates deviations from the rule of non-discrimination,indicate whether such deviation is pursuant to Article XIV 1 (b) or 1 (c) or to Annex J.

III. Describe the main changes introduced since January 1, 1948 in the system outlined in your reply to question 2 above, particularly those which have had the effects of either intensifying or alleviating the discriminatory effects of your restrictions.

IV. For an adequate number of individual commodities representing a cross section of products subject to import restrictions describe in detail the provisions, policies, and practices followed with respect to import restrictions in each commodity. Supplement such description with specific statistical and other information designed to describe the effects which existing import restrictions have had upon the distribution among sources of supply from which such imports are obtainable. GATT/CP/62 Page 4

Note: The commodities selected should be of sufficient number to provide an adequate cross section of commodities affected by existing import restrictions. It is believed that such illustrations would probably not be representative unless in total they represented at least 30 percent of the import trade of the reporting country and covered at least 10 commodities. In determining the effects of such restrictions upon sources of supply, comparable data on prices existing in alternative sources would be extremely helpful.

V. 1 Describe the effects which you believe discriminatory import restrictions imposed by you or by other countries, have had upon the volume and pattern of your export trade. GATT/CP/62 page 5

REPLIESEFROM CONTRACTING PARTIES WHICH WERENOT IMPOSING IMPORT RESTRICTIONS FOR BALANCE-OF-PAYMENT REASONS

B(Translation)E L G I U M V. A. Discriminatory restrictions imposed by Belgium Since Belgium now places no restrictions on the importation of goods to safeguard her balance of payments in accordance with the provisions of Article XII of the General Agreement on Tariffs and Trade no discrimination is practised by Belgium within the framework of her import trade policy. In the years following the 1940-45 war Belgium set out to adopt a distinctly liberal economic policy. To that end she has opened her frontiers wide to foreign products. B. Discriminatory restrictionsimposed by other countries Belgium's free import policy was inevitably bound to lead to a rapid saturation of the domestic market, with the result that the latter would cease to afford Belgian industry an adequate demand enabling it to market its production. It was precisely at that juncture that Belgium, in view of the many assurances she had received not only during bilateral negotiations, but also within the international organisations, had hoped to find in the export market the outlets no longer available in the domestic market. Unfortunately this hope proved vain. Despite the demand for Belgian products in most markets our exporters were confronted not only with severe import restrictions but also with widespread discrimination. Belgium is not at present in a position to supply the Contracting Parties with a detailed account of the effects on the volume and pattern of her export trade of the discriminatory import restrictions imposed by other countries, but she can mention a few of them: (1) Effectson the pattern of our export trade Generally speaking, foreign countries, alleging financial difficulties as grounds for discrimination, have developed the idea of essential and non-essential commodities. This distinction has affected the level of activity in certain Belgian industries. We find, for example, in Belgium at the present time that certain branches of industry (glass, leather, non-ferrous metals etc.) are working to only 60 or 80% of their pre-war productions capacity while in other branches (metallurgical and steel industries) the coefficient is 120 and even 169. The direct corollary of this situation was an increase in unemployment, which at the present time affects more than 300,000 out of a working population of approximately 2 million. GATT/CP/62Page 6

BELGIUM (continued)

(2) Effects on theVolume of ourExport Trade It is impossible at the moment to estimate the overall prejudice caused to the total volume of Belgian exports. Nevertheless, merely by way of example, the Belgian delegation can cite two particular cases for which it has adequate data: (a) In her export trade with the United Kingdom Belgium does not enjoy the advantages of the Open General Licence which the United Kingdom has accorded to other countries. With regard to the first "batch" of releases, and taking only the articles for which Belgium had received quotas into account, it may be estimated, very roughly, That the Open General Licence would have enabled the sale of Belgian products to be increased from £7,100,000 to £10,000,000 over a period of twelve months. If we take the second "batch" of releases and opportunities in the Outer Sterling Area into account we, may reasonably put the damage sustained at £5 million.

(b) Discrimination by the Union of South Africa against Belgian exports affects several products. The Belgian delegation would like, by way of examples to cite here the particular case of sheet glass and plate glass.

The two main suppliers of the Union of South Africa for these products were the United Kingdom and Belgium, a fact which is illustrated by the following pre-war statistics:

Imports of Sheet Glass and Plate Glass into the Union of South Africa

Value of Imports in £ Year Total from the United from Kingdom Belgium 1937 213, 513 117,073 64, 143 1938 166,495 96,761 43, 973

A comparison of the above statistics with the post-war figures at once shows the effect on Belgium of the discriminatory measures applied by the Union of South Africa. GATT/CP/62 BELGIUM(continued) Page 7 EXports of Sheet Glass and Plate Glass to the Union of South Africa Exports in tons Year from Belgium from the United Kingdom 1948 6, 548 13,206 1949 871 (1) 14,398 1950 ? (estimates)

(1) First 10 months of 1949. A comparison of these figures shows that in a case of this kind discrimination not only results in a reduction in the volume of exports but also causes a diversion of the traditional trade channels and even the total loss of a market which was traditionally open to a given industry. The case of the Union of South Africa, which is only one among many, clearly brings out the dangers of discrimination for a specifically Belgian such as the glass industry. Industry, Two basic facts emerge from a comparison of the statistics concerning export trends for Belgian glass products during the years 1937, 1947, 1948 and 1949: (a) Taking 1937 as the reference period (= 100) Belgian exports in tons were: 1947 - 80.4% 1948 - 75.6% 1949 - 56.6% (b) The proportion by values of the total of Belgium's special trade represented by glass was: 1937 2.51% 1947 . 3.48% 1948 2.33% 1949 1.62% For an industry which before the war, normally exported three-quarters of its production - and which, we may adds must do so in order to survive - the situation is catastrophic and is seriously affecting the number of workers employed which averaged 23,000 in 1937, reached a peak of 21,510 (94% of 1937) in October 1947 and fell to 13,155 (58%of 1937), its lowest levels in July, 1949. Actually from the point of view of production unemployment is even higher since a certain proportion of specialized workers still kept on is redundant. GATT/CP/62 Page 8

S Y R I A (Translation) I. The import licence system and exchange control wore established in Syria for the first time at the beginning of the war in September 1939. Since then, the two systems have been modified on a number of occasions and, in particular, in 1949. In July of that year, Syria and Lebanon which together form a Customs Union, revised their tariff policy by common agreement. Although the trade of the Lebanon Syrian Customs Union shows a consistently adverse balance not appreciably reduced by invisible imports, the two Parties to the Customs Union considered that, in view of the many disadvantages of the quota system and of exchange controls a tariff policy aiming at the protection and development of national production night prove sufficient to wipe out the adverse trade balance and eventually restore equilibrium in their balance of payments. At the present time, the two countries can ensure the balance of payments only by the sacrifice of their gold and foreign currency holdings. It was in this spirit that an agreement, sketching out the broad lines of customs policy for the Union, was arrived at between the Governments of Syria and Lebanon. In pursuance of this Agreement customs duties have been raised on products which are the staple commodities of their industrial production. At the same time, the system of exchange control was relaxed and brought more into line with the spirit of the General Agreement on Tariffs and Trade. Trade and exchange regulations at present in force in Syria can be summarised under the following heads: (a) the import licence system; (b) exchange control; (c) monopolies. A. The Imoort Licence System Under the terms of Article 8 (b) of Decree No. 1736 dated 31 July 1948, "No goods of foreign origin or provenance may be imported except under licence applied for beforehand and issued by the Ministry of National Economy ...." This system is in fact applied to the products covered by the provisions of Article XVIII of the General Agreement on Tariffs and Trade relating to the protection and development of particular industries or branches of agriculture, and in conformity with the decisions of the Contracting Parties. Apart from this limited application, the system of import licenses exists only for administrative and statistical purposes. Once an application has boon made to the Ministry of National Economy the import licence is granted to any importer unconditionally and without discrimination. GATT/CP/62 SYRIA (continued) Page 9 B. Exchange Control New Exchange control regulations were established by Decrees No. 1736 dated 31 July 1948, No.1835 dated 12 August 1948, No. 2516 dated 1 December 1948 and No. 285 dated 26 September 1949. The regulations are in broad outline as follows: 1. Holders of foreign currency derived from exports may dispose freely of the whole of the sums to their credit; 2. In the case of foreign currency derived from other sources, a portion which varies according to the source of the currency, must be placed at the disposal of the Exchange Control Office; 3. Private persons must obtain for themselves the foreign currency required for any imports they wish to make. 4. The Exchange Control Office is reponsible for supplying the necessary foreign currency for: (a) the requirements of the Government, public institutions and commercial institutions of public utility; (b) the purchase of motor fuel imported for local consumption.

There are still three monopolies in Syria all of them existing for fiscal purposes and helping to swell the State budget. They are as follows: 1. The Sugar Monopoly.Permission to import granulated, cone or lump sugar is granted in principle only to the Mono- poly or on its behalf. Private individuals, are however permitted in special cases, to import sugar, provided they first obtain a licence and pay the monopoly tax. 2. The Tobacco Monopoly.No tobacco may be imported except by or on behalf of the Monopoly: the Monopoly also regulates the cultivation of tobacco, the tobacco industry and tobacco consumption in Syria. 3. The Salt Monopoly.In Syria, salt flats are State property and are operated by the Indirect Taxation Adminis- tration which extracts the salt and sells it at a price fixed by decree. This Monopoly for the commercial exploitation of an abundant mineral resource likewise exists for fiscal purposes.

It may be concluded from the foregoing that, at present, in accordance with Article XII of the General agreement on Tariffs and Trade, Syria does not impose import restrictions to safeguard her balance of payments. GATT/CP/62 Page 10

UNITED STATES

V. Question 5 asks for a description of the effects which discriminatory import restrictions imposed by other countries have had on the volume and pattern of the export trade of the United States. The United States is not in a position at this time to present a detailed statement in answer to this question. Nevertheless, it desires to make the follow ing general observations on the subject. It is clear without the need for detailed statistical analysis, that there exists today throughout the world a widespread system of trade restrictions which operate to discriminate against exports from the United States. Most of these discrimination have been associated with postwar difficulties and reflect the current disequilibrium in world trade and payments. The United States considers that this disequilibrium is neither permanent nor intractable. A solution to this problem can be found if all the contracting parties adopt appropriate policies clearly directed to achieving the goal of a fully multilateral trading world in which all major currencies can be freely exchanged for one another and without resort to restrictions on payments for current transactions. In the view of the United States these continue to be the fundamental objectives of the GATT, of the ITO and of the IMF, by which all of the contracting parties have agreed to be guided. The United States is at present studying carefully the development of balance of payments policies throughout the world in the light of these objectives. GATT/CP/62 Page 11 . REPLIES FROM CONTRACTING PARTIES IMPOSING IMPORT RESTRICTIONS FOR BALANCE-OF-PAYMENTS REASONS AUSTRALIA II. Overall Position Although Australiats international trade and payments in recent years have resulted in the accumulation (at least temporarily) of considerable sterling balances, Australia's monetary reserves in gold and convertible currencies have remained very low. At the same time, full employment and the need for capital replacement and extension has kept the demand for imports high. Without strict control of imports requiring payment in convertible currencies, therefore, Australia's monetary reserves could quickly be reduced substantially below their already inadequate level. Australia is a member of the Sterling Area, and as is well known, the Sterling Area as a whole has inadequate reserves of gold and convertible currencies and, moreover is in deficit with the convertible currency countries. Membership of Sterling Area Under present arrangements the various, members of the Sterling Area pool their net earnings of non-sterling currencies and are able to draw from the pool to make payments in any currency of which supplies are ample for the Sterling Area as a whole. Payments in currencies which are in short supply for the Sterling Area have necessarily to be limited to the availability of these currencies. Accordingly Australia co-operates with other Sterling Area countries to limit purchases from these "hard" currency sources. Australian import policy is thus guided by whether the particular currency required in payment for goods is "hard" or "easy" from the viewpoint of the Sterling Area as a whole. This pooling system enables Australia to set off a deficit in payments with one country against a surplus with another. Although in some circumstances Australia is obliged to restrict imports from a country with which it has a favourable balance of payments but whose currency is "hard" the system does permit an unrestricted flow of imports from a country with which Australia has a markedly unfavourable balance but whose currency is "easy". In this way, membership of the Sterling Area enables Australia to keep controls on imports to a minimum and to avoid the restrictions on international trade which would result from bilateral settlements with each country. It is thus possible to trade freely on a multi lateral basis with all Sterling and other non- hard currency countries, as long as Australia's own supplies of sterling are sufficient. Australia's Sterling Position In contrast to the difficulties experienced since the war in earning sufficient dollars and other hard currency to pay for essential imports from countries requiring payment in those currencies, Australia's sterling balance GATT/CP/62 page 12 AUSTRALIA (continued) of payments has yielded a surplus and there has been a consequential increase in Australia's sterling balances held in London. This has made it possible to remove substantially all restrictions against goods from countries which are prepared to accept sterling in final settlement for trade transactions and do not ultimately demand gold or convertible currency. Nevertheless there are important qualifications to this apparently sound position. Much of the post-war growth of Australia's sterling balances has been due to exceptional factors. Seasonal conditions have been un- usually good. The prices of the stable primary products exported by Australia have been exceptionally high, due largely to post-war shortages and economic dislocation. Concurrently many of the goods normally imported into Australia have been unavailable in the quantities required except from hard currency sources. Imports of capital, moreover, much of which may prove to be only temporary, have played a very large part in building up the present balances. Although Australia's sterling position is therefore not so favourable as might appear at first sight, no change in the existing liberal import policy is contemplated. Development of Policy. The system of import controls was instituted in 1939 as a war-time emergency measure and was adapted to the successive situations which arose in the course of the conflict. By the end of the war the system had become extremely comprehensive and had to be adapted progressively to more normal peacetime requirements. After the war the restrictions were gradually relaxed as circumstances permitted. Because of the payments position and other relative factors, it was possible to remove progressively most of the restrictions on imports from other sterling countries more quickly than on other goods, but these also were freed whenever practicable Administration of Policy. The restrictions which Australia imposes on balance of payments grounds are made effective through the Customs (Import Licensing) Regulations. Nearly all goods of United Kingdom origin are exempt from the provisions of the Regulations and a wide range of goods originating in the other countries of the Sterling Area is also exempt. In the case of goods for which an import licence is required, licences are in nearly every case issued freely upon production of evidence that the goods are available for export from the country in question. Changes in the balance of payments position of the Sterling Area in relation to other currency areas have been frequent and sometimes very sudden. For this reason it has not been possible to remove goods of non-sterling origin from the provisions of the Customs (Import Licensing) GATT/CP/62 AUSTRALIA (continued) page 3 Regulations, and it is therefore necessary for an importer to obtain a licence in every case for goods of non-sterling origin. At the present times however, import licences are issued freely, upon evidence of availability, for nearly all goods produced in the territories of the non-sterling Contracting Parties (except Contracting Parties of the Dollar and Belgian Monetary Areas) and most other non- sterling countries. Apart from the necessity of obtaining import licences, which at present is merely a formality, the importation into Australia of goods produced in the territories of the non-sterling Contracting Parties, with the exception of Contracting Parties of the Dollar and Belgian Monetary Areas, is on the same footing as are imports from the countries of the Starling Area and there are virtually no restrictions on the nature or value of goods which may be imported into Australia from those countries. The following currency areas are at present regarded as "hard" currency areas - Argentine Belgian Monetary Area Dollar Area Paraguay Persia Portugese Monetary Area Switzerland Western Germany. The issue of import licences for goods originating in the "hard" currency areas listed above is, in general, restricted to essential commodities which are not available in adequate quantities from easier currency sources of supply. Petroleum Products The observations in this statement regarding the import licensing treatment accorded by Australia to goods originating in sterling and non-sterling countries do not apply to petroleum products. The overwhelming proportion of petroleum products imported into Australia is purchased from British and American companies, which produce petroleum products in many different parts of the world. The petroleum products bought from American companies cost dollars wherever they are produced, and there is also a large dollar element in the production costs of British-controlled companies. Owing to limitedrefining capacity, the production of petroleum products by the British controlled companies is not sufficient to meet the needs of the Sterling Area GATT/CP/62 AUSTRALIA page 14 (continued) and other essential commitments. Accordingly, if Australia were to import a greater proportion of her requirements from British-controller companies, some other part of the Sterling Area would have to make correspondingly larger purchases from American companies and there would be no net dollar saving to the Sterling Area as a whole. This being the case, the policy followed in Australia is to allow the source of supply to be governed by ordinary commercial consideration such as tanker availability and the shorthaul principle. This policy results in greater economy in the use of tankers and reduces the landed cost of petroleum products. although it results in some parts of the Sterling Area purchasing a much larger proportion of their requirements than others from American companies, it does not in any way add to the dollar cost of petroleum products to the Sterling Area as a whole. The deviations from the rule of non-discrimination referred to above are in accordance with Article XIV (1) (b) and (1) (c). III. With the suspension of convertibility of sterling into dollars in August, 1947, Australia was obliged to carry out an immediate review of the Volume and nature of her imports from the Dollar Area. Following this review many licences which had been issued for Dollar Area goods were cancelled and the issue of further licences was virtually suspended for a certain time. As from 1st April, 1948 the issue of licences was resumed at a reduced rate and a stricter criterion of essentiality was adopted for imports from the Dollar Area. It has since been necessary to continue these restrictive measures and the rate of issue of licences for the importation of goods of Dollar Area origin is reviewed from time to time in the light of changes in the general Starling Area Dollar situation. As a result of a review in July 1949 an even stricter criterion of essentiality has been applied to the issue of licences for goods of dollar area origin. In an effort to assist in arresting a heavy and persistent gold drain from the Sterling Area to Belgium, Australia was obliged, on 1st April, 1948, to impose restrictions on the value of licences to be issued for goods to be imported from the Belgian Monetary Area. In view of the subsequent heavy gold losses from the Starling Area to Belgium, it has not been possible forAustralia to abandon these restrictions. For similar reasons it became necessary for Australia, on 1st July, 1949, to exercise careful control over the volume of her imports from Switzerland and, owing to subsequent gold loses from the Sterling Area to Switzerland, it has been necessary for Australia to maintain this control. As soon as balance of payments considerations have permitted, Australia has relaxed her import licensing controls and the first major step in this direction in 1948 was taken when, on 7th June,practical all restrictions were removed on the issue of licences for the importation of goods from the Sterling and French Monetary Areas. On 8th November, 1948,therelaxation which, on 7th June, had been made in regard to the issue of licences for goods originating in the Sterling and French Monetary Areas were extended to goods originating in all of the following currency areas Abyssinia Netherlands Monetary Area Albania Norway GATT/CP/62 Page 15/16

AUSTRALIA (Continued)

Austria Peru Bulgaria Poland Czechoslovakia Roumania Chile Siam China Southern Korea Denmark Spanish Monetary Area Finland Syria Greece Turkey Hungary Yugoslavia Italy On 29th December,1948, a similar relaxation was made in regard to the issue of import licences for goods originating in Sweden and on 26th July 1949, the relaxations were extended to goods of Brazilian and Uruguayan origin.

IV. See tables on following pages.

V. Discriminatory import restrictions imposed by other countries in the post-war period have not had major effects upon Australia's export trade. Exports of certain manufactured goods to nearby countries, including Now Zealand, Malaya, and India, have benefited from discrimination on balance of payments grounds, but the trade involved is small in relation to Australia's total exports, No case is known of any substantial change in the volume or patterns of Australia's export trade due to discriminatory import restrictions imposed by Australia. AUS T A LI A(continued) GATT/CP/62 DESCRIPTION OF IMPORT RESTRICTIONS WITH RESPECT page 17 TO PRINCIPAL COMMODITIES AND STATISTICS OF THESE IMPORTS BY PRINCIPAL COUNTRIES OF ORIGIN IV. The value of Australian imports totalled £A209 million in 1946/47, £A340 million in 1947/48 and 9A415 million in 1948/49. For the three year period 1936/37, 1937/38 and 1938/39 the annual value of Australian imports averaged £A117 million. The value of Australian imports of the commodities referred to hereunder totalled £A85 million in 1946/47, £A138 million in 1947/48 and £41 million in 1948/49 as compared with annual average value of fA39 million in the three year period - 1936/37, 1937/38 and 1938/39. These products which comprised 41% of the value of Australia's total imports in 1946/47, 41% of the value of total imports in 194.7/48 and 34% of the value of total imports in 1948/49, and the import restriction in regard to each commodity are as follows:-

(a) when of United Kingdom and other sterling area origin - exempt from import licensing control; (b) when originating in "easy" currency countries - licences issued freely on evidence of availability; (c) when originating in hard currency areas - licences are issued for essential supplies which cannot be obtained from easier currency sources.

1936/7. 1937/38. 1938/39. COUNTRY OF ORIGIN AnnualAverage

000. 000. £A000. 1bs. 000. 1bs. 000. 1bs. £A000. 1bs. United Kingdom 3,920 - 128 3,522 231 2,505 210 6,539 553 Canada 15,720 457 3,781 268 2,316 206 287 27 South Africa 180 15 5,377 439 638 62 New Zealand 342 31 437 70 738 100 383 42 Netherlands - 247 30 176 14 Norway 2,438 110 245 23 8,477 1,159 10,284 1,537 Belgium - 28 5 134 11 Denmark 372 74 15 100 French Morocco - 30 6 153 27 Italy 13 2 - - 28 6 74 12 Japan 3,524 145 - - - Portugal 271 16 134 30 87 18 55 14 U.S.S.R. 964 32 - Sweden 4 - 121 15 35 34 United States of America 1,672 66 - Spain 26 1 44 3 67 6 131 9 Other Countries 138 11 36 4 179 24 659 30 TOTAL: 29,032 999 . 8,379 644 20,572 2,298 19,563 2,472 (2) UNMANUFACTURED TOBACCO: (a) when of United Kingdom origin - exempt from licensing control; (b) when originating in other sterling area and "easy" currency countries - licences are issued freely on evidence of availability; (c) when originating in "hard" currency areas - licences are issued for essential requirements which cannot be obtained from easier currency sources.

. 1936/37. 1937/38. 1938/39. 1946/47. 1947/48. COUNTRY OF ORIGIN Annual Average. lbs.000 lbs.£A000000 £A000. lbs. 000. £A000. lbs. 000. £A000. Southern Rhodesia 75 3 1,473 326 3,148 587 6,210 1,473 South West Africa 20 3 86 10 Cuba 75 11 49 23 60 20 48 12 Netherlands East Indies 178 27 17 17 58 55 United States of America 21,685 1,947 18,292 3,355 27,508 5,049 17,058 Other Countries 214 8 61 9 218 19 85 3,55112 TOTALS 22,227 1,996 19,895 3,716 30,951 5,692 23,545 GATT/CP/62 page 18 AUSTRALIA(continued) (3) RAW COTTON AND LINTERS

(a) when of United Kingdom origin - exempt from import licensing control;

(b) when originating in other Sterling Area and "Easy" currency countries - licences are issued freely on evidence of availability; (c) when originating in "hard" currency areas licences are issued for essential requirements which cannot be obtained from easier currency sources.

1936/37. 1937/38, 1938/39. 1946-47. COUNTRY OF ORIGIN Annual Average. lbs. 000. £A000. lbs. 000. £A000. lbs. 000, £A000. lbs. 000. £A000. India & Pakistan 4,870 113 13,802 864 12,719 012 14,010 1,244 South Africa - 100 6 Belgian Congo - 1,565 88 343 19 455 26 Brazil 10,440 775 10,609 908 13,768 China 598 14 Egypt 122 5 3,342 348 4,911 548 5,517 678 Peru 32 1 404 32 29 3 269 United States of America 4,094 5,306 414 6,157 588 3,221 314 Other Countries 286 14 84 TOTAL : 9,926 266 35,145 2,535 34,868 2,984 37,324 3,669 (4) BAGS AND SACKS (CORNANDFLOUR) (a) when of United Kingdom origin - exempt from import licensing controls; (b)when originating in other Sterling Area and "Easy" currency countries- licenses are issued freely on evidence of availability; (c) adequate supplies are available from sterling and "easy" currency sources and licences are not issued for these goods when of "hard" currency country origin.

1936/37. 1937/38. 1938/39. 1946-47. 1947-48. COUNTRY OF ORIGIN Annual Average Nos. 000. £A000. Nos. 000. £A000. Nos. 000, £A000. Nos. 000, United Kingdom 84 2 72 5 36 4 396 India 53,652 1,239 54,216 4,497 76,992 8,411 75,624 9,818 Netherlands East Indies 12 1 1,020 91 Other Countries 192 180 18 108 10 96 12

TOTAL : 53,940 1,245 54,468 4,520 78,156 8,516 76,116 9,879

(5) RAYON YARNS (a) when of United Kingdom origin - exempt from import licensing control; (b) when originating in other sterling area and "easy" currency countries - licence's are issued freely on evidence of availability; (c) when originating in "hard" currency areas - licences areissued for essential typos which are not available in adequate quantities from easier currency sources of supply.

1936/37.1937/38. 1938/39. 1946-47 1947-48. COUNTRY OF ORIGIN Annual Average lbs. 000. £A000. lbs. 000. £A000. lbs. 000. £AOOO. lbs. 000. £A000. United Kingdom 2,958 401 5,003 1,376 6,234 2,112 7,384 2,920 Canada 49 16 85 67 30 30 Belgium 57 7 338 156 1,656 736 France 17 2 119 38 630 Germany 36 6 - - - Italy 1,799 111 695 349 346 Japan 803 46 351 85 245 60 Netherlands 1,623 187 192 76 1,775 917 1,854 986 Switzerland 2 1 44 23 182 80 United States of America 430 100 2,631 661 79 79 Other Countries 14 2 10 5 4 4 TOTAL : 7,307 762 6,027 1,654 11,931 4,328 12,410 232 GATT/CP/62 AUSTRALIA (continued) page 19 (6) CARPETS, FLOOR RUGS AND COVERINGS

(a) when of United Kingdom origin - exempt from import licensing control; (b) when originating in other Sterling Area and "easy" currency countries - licences are issued freely on evidence of availability; (c) adequate supplies of these goods are now available from sterling and "easy" currency sources and licences are not being issued for these goods when of "hard" currency country origin.

1936/37, 1937/38, 1938/39 1946-47 1947-48 Averages COUNTRY OF ORIGIN Annual £A000 SQ. YDS.000 £A000 SQ.YDS.000 £A000 SQ.YDS.000 £A000 SQ,YDS.00 5,363 United Kingdom 3,171 1,190 1,262 1,204 3,588 3,641 4,930 40 . 42 India 46 15 470 498 143 172 71 Belgium 558 105 248 200 845 778 87 China 45 10 - 2 4 Czechoslovakia - 55 35 6 France 14 3 54 57 175 187 4 Germany 28 10 - 20 Italy 42 10 85 50 193 155 29 - - Japan 209 12 - 9 Persia 5 3 14 20 6 18 3 Other Countries 44 11 74 27 11 9 4 5,519 TOTAL: 4162 1,369 2,207 2,056 5,016 4,995 5,103 . (7) COTTON PIECEGOODS (PRINTED: DYED, COLOURED) (a) when of the United Kingdom origin - exempt from licensing control; (b) when of other Sterling Area and "easy" currency country origin - licences are issued freely on evidence of availability; . (c) adequate supplies of these goods are now available from sterling and "easy" ctrrency sources and licences are not being issued for those goods when of "hard" currency country origin.

1936/37, 1937/38, 1938/39 1946-47 1947-48 . COUNTRY OF ORIGIN Annual Averages £A000 SQ.YDS.000 £A000 SQ.YDS.000 £A000 SQ.YDS.000 £A000 SQ.YDS.000 4,585 69,959 2,452 27,761 3,304 31,638 5,008 27,888 66 United Kingdom 542 India 103 2 12,198 1,068 7,925 38 Hong Kong. - - - 290 1,533 66 1,205 101 2,312 243 Canada 239 57 Austria 8 78 18 54 Belgium 821 42 1,778 448 6,252 1,475 308 3 China 6 - - 25 .765 Czechoslovakia 62 5 - 722 142 6,641 355 France 38 3 109 34 870 199 1,867 18 Germany 159 12 98 94 Hungary - 236 56 601 106 Italy 25 3 64 28 241 96 676 5 Japan 14,052 270 12,135 965 45 Mexico 132 18 938 131- 136 Netherlands 447 23 266 69 1,355 322 746 55 Poland 142 24 320 Spain 16 3 58 9 Switzerland 261 19 23 9 177 74 14 133 United States of America 353 15 7,200 1,165 49,023 6,474 215 39 Other Countries 13 2 14 3 6 3 54

2,914 40,627 6,371 TOTAL: 87,840 50,710 6,247 . 114,066 16,071 GATT/CP/62 page 20 AUSTRALIA (continued) (8) RAYON PIECE GOODS (a) when of United Kingdom origin - exempt from import licensing control; (b) when of othcr Sterling Area and "easy" currency country origin - licences are issued freely on evidence of availability: (c) adequate quantities of these goods are now available from sterling and "easy" currency sources and licences are not being issued for rayon piece goods originating in hard currency countries.

1936-37, 1937-38, 1938-39. 1946-47. 1947-48. 1948-49. Annual Average COUNTRY OF ORIGIN SQ.YDS.000. £A000. SQ. YDS. 000 £A000. SQ.YDS. 000. £A000. SQ.YDS.000. £A000.

United Kingdom. 18,581 1,210 30,042 6,776 44,836 11,415 22,743 5,672 Canada 777 129 1,835 340 2,143 577 122 32 Belgium 136 12 66 30 394 149 62 21 Czechoslovakia. 400 43 6 3 430 133 389 146 China 17 27 Cuba 99 28 France 488 59 . 1,364 637 1,237 219 91 1,400 Italy 659 56 . 5,010 2,054 2,528 1,070 391 Germany 1,365 182 12 2 158 51 Hungary 409 29 56 23 Japan 45,660 1,341 7. 4 111 16 Netherlands 16 2 134 40 317 103 467 Spain 63 5 3 1 90 40 7 3 Switzerland 617 66 284 115 918 394 318 44 United States of America 165 18 13,865 2,752 23,406 5,384 4,322 1,010 Other Countries 51 6 14 8 56 27 132 9 69,387 3,158 52,623 12,756 76,391 19,848 30,605 7,637

(9) MINERAL LUBRICATING OIL: Import licences are issued for mineral lubricating oil in accordance with the principles outlined in regard to petroleum products in the answer to Question 2 of this Questionnaire.

1936-37, 1937-38, 1938-39. 1946-47. 1947-48. 1948-49. Annual Average COUNTRY OF ORIGIN Gals. 000. £A000. Gals. 000. £A000. Gals. 000. £A000. Gals. 000. £A000. United Kingdom 199 17 107 14 124 18 542 98 Canada - 44 5 136 22 - - Germany 809 40 - - India - - 106 14 Curacao - - 1,237. 72 2,299 145 United States of America 15,037 889 26,223 2,594 24,761. 2,922 27,963 3,464 Other Countries 101 6 2 - 1. - 32 1 U.S.S.R. 14 -206 - - - -

TOTAL: 16,352 966 26,376 2,613 26,259 3,034 30,942 3,722 GATT/CP/62 page 21 AUSTRALIA (continued) (10) PETROLEUM AND SHALESPIRIT.

to Import Licences are issued for petroleum and shale spirit in accordance with the principles outlined in regard to petroleum products in the answer Question 2 of this Questionnaire. 1936-37, 1937-38, 1938-39 1947-48 1948-49 COUNTRY OF ORIGIN. Annual Average Gals. 000. Gals. 000. £A000. Gals. 000. £A000. Gals. 000. £A000. Gals.000. £A000.£A000. Gals.000. United-kingdom 1,866 ------50,814 133 Singapore - 1,321 Malaya 3,341 101 - Trinidad 3,986 Borneo 1,909 38 2,655171 Bahrein Islands 18,466 290 94,585 2,295 109,013 3,478 73,783 Saudi Arabia & Yemen - - - - 9,824 324 5,997 249 Netherlands East Indies 200,498 3,696 405 31 28,480 1,077 141,851 5,690 Persia 36,223 627 214,096 5,344 183,901 6,654 113,333 4,880 Peru - 2,017 42 1,869 United States of America 61,887 1,120 45,730 1,224 66,353 2,125 46,777 Other Countries 969 20 66 4 1,239 17 TOTAL: 356,899 8,940 403,977 13,843 441,541 17,513

(11) RESIDUAL AND SOLAR OILS to Import licences are issued for residual and solar oils in accordance with the principles outlined in regard to petroleum products in the answer Question 2 of this Questionnaire. 1936-37, 1937-38,1938-39 1947-48 1948-49 COUNTRY OF ORIGIN Annual Average Gals. 000 £A000 Gals. 000. £A000. Gals. 000. £A000. Gals.000. 24,491 778 10,492 466£A000. Borneo 4,257 31 8,891 168 303 Malaya 11,148 342 9,680 6,387 169 77,196 2,267 Singapore 732 13,162 365 Bahrein Islands 77,988 1,391 30,109 359 Saudi Arabia & Yemen 15,090 408 13,251 Iraq - - - 3,279 153 - - 70 1 149 4 5,068 134 Curacao 1,993 98,664 2,745 Netherlands East Indies 99,173 741 71,767 3,163 Persia 8,260 62 138,450 2,770 103,271 2,117 153,340 160 24,354 610 9,374 274 United States of America 4,182 33 7,496 14 Other Countries 330 5 14 1 1 422 TOTAL: 116,202 972 232,909 4,491 290,045 7,306 390,649 10,090 (12) COPPER, PIGS INGOTS ANDBLOCKS

(a) when of United Kingdom origin - exempt from import licensing control; - of (b) when of other Sterling Area and "easy" currency country origin licences are issued freely on evidence availability; sources of are unavailable in adequate essential quantities from easier currency supply. licences are issued for essential types of "hard" currency origin which 1936-37, 1937-38, 1938-39 1947-481948-49 COUNTRY OF ORIGIN Annual Average Cwts. 000. Cwts. 000. £A000. . £A000. United Kingdom 716 . South Africa 75 614 73595 New Zealand 2 158 United States of America 10 - 96 4 34 Other Countries - 1 TOTAL: 3 6 12 110 179 1,364 252 1,968 GATT/CP/62 page 22 AUSTRALIA (continued) (13) TINPLATE: (a) when of Sterling Area and "easy" currency country origin licences are issued freely on evidence of availability; (b) when of "hard" currency origin licences are issued for essential requirements which cannot be obtained from easier currency sources.

1936-37, 1937-38, 1938-39. 1946-47. 1947-48. 1948-49. COUNTRY OF ORIGIN. Cwts. 000. £A000. Cwts. 000. £A000.Cwts. 000. £A000. Cwts. 000. £A000. Cwts. 000. £A000. UnitedKingdom. 1,464 2,277 594 1,532 852 2,402 1,358 4,464 . Japan. 50 60- Canada. 14 United States of America. 2,987 885 2,543 . TOTAL: 1,521 2,348 1,885 4,250 1,990 5,389 2,243 7,0077

(14) CRUDE RUBBER ANDWASTE: (a) when of Sterling Area origin - exempt from import licensing control; (b) when of "easy" currency country origin - licences are issued freely on evidence of availability; (c) no licences are being issued for rubber originating in "hard" currency countries as adequate supplies are available from easier currency sources.

1936-37, 1937-38, 1938-39. 1946-47. 1947-48. COUNTRY OF ORIGIN. Lbs. 000. £A000. Lbs. 000. £A000. £A000. Lbs. 000. £A000. Lbs. 000. £A000. United Kingdom 308 6 177 1,51836 663 28 Now Guinea 36 1 793 56 377 20 146 7 Papua. 2,706 107 1 106 2,509 144 2,446 151 Borneo. 26 1 772 42 213 13 107 10 Ceylon. 4,232 194 13,078 1,232 1,868 94 1,133 69 Malaya 22,463 948 38,666 2,608 51,866 2,646 55,6812,646 3,02351,866 3,023 Netherlands East Indies. 149 United States of America. 2,040 28 600 12 12 1 216 20 Other Countries. 2,549 414 153 10 21 348 24 TOTAL: 37,799 1,521 55,653 4,085 58,777 2,975 60,740 3,332 (15) UNDRESSED TIMBER - BEAMS, BAULKS, JOISTS AND OTHER SAWN TIMBER: (a) when of Sterling Area origin - exempt from import licensing control; (b) when of "easy" currency country origin - licences are issued freely on evidence of availability; (c) when of "hard" currancy origin - licences are issued for essential requirements which cannot be obtained from easier currency sources.

. 1936-37, 1937-38, 1938-39. 1946-47. 1947-48. 1948-49 Annual Average. COUNTRY OF ORIGIN. Square Ft. 000. £A000. SquareFt. 000. £A000. Square Ft.000. £A000. Square Ft. 000. £A000. Burma. - - 9012 76 10 36 6 Canada. 29555,664 80,948 2,013 41,971 1,162 68,596 1,625 New Zealand. 14,247 183 2,101 70 6,058 122 7,926 200 Brazil. - - 2,507 461 Finland. 2,849 21 814 24 Philippines. 3,548 35 - Sweden. 2,636 21 304 7 1,984 63 13,921 144 United States of America. 19,221 217 20,643 420 53,407 1,274 34,093 815 Other Countries. 3,843 53 14 102 541 25 TOTAL: 102,008 825 104,188 2,536 103,737 2,645 128,434 3,300 GATT/CP/62 AUSTRALIA (contInued) page 23 (16) PULP FOR PAPERMAKING: (a) when of Sterling area origin - exempt from import licensing control; (b) when of "easy" currency country origin - licences are issued freely on evidence of availability; (c) when of "hard" currency country origin - licences are issued for essential supplies which cannot be obtained from easier currency sources.

1936-37,1937-38, 1938-39. COUNTRY OF ORIGIN Annual Average. . Cwts. 000. £A000. Cwts. 000 £A000. Cwts. £A000. Cwts. 000. £A000.

United Kingdom 1 12 3 26 2 30 Canada 216 271 266 467 180 377 Newfoundland 27 25

Finland 243 - 194 664 Norway 27 16 36 59 4 15 20 49 Sweden 606 276 428 560 358 829 540 1,371 United States of America 93 18 31 62 318 560 51 31 Other Countries . 32 18 9 4 1

. . TOTAL: 1,001 412 748 992 1,041 2,091 1,073 2,523 . (17) PRINTINGPAPER: . (a) when of sterling area origin - exempt from import licensing control: (b) when of "easy" currency count ry origin licences are issued freely on evidence of availability;

(c) adequate supplies of printing paper are now available from sterling and easy currency areas and licences are not being issued for this type of paper of "hard" currency origin.

1936-37, 1947-48 COUNTRY OF ORIGIN Annual1937-38,Average1938-39 1948-49 Cwts. 000 £A000 Cwts. 000 £A000 Cwts. 000 £A000 Cwts. 000 £A000

United Kingdom 1,137 944 65 320 139 861 401 1,294 Canada 2,878 1,620 2,905 3,905 2,018 3,187 761 1,309 Newfoundland - - 423 551 392 607 88 145 Finland 23 9 20 75 98 466 194 560 Germany 62 37 - Norway 44 26 20 90 91 375 2,984 1,135 Japan 16 14 - - Sweden 41 34 11 48 150 815 453 1,314 United States of America 2 5 24 71 142 709 8 58 Other Countries 26 18 6 52 28 175 33 52 TOTAL: 4,229 2,707 3,474 5,112 3,058 7,195 4,922 5,867

(1 FOUNTAIN PENS,PROPELLING PENCILS AND PARTS THEREFOR (a) when of Sterling Area origin - exempt from licensing control; (b) when of "easy" currency country origin - licences are issued freely on evidence of availability; (c) when of "hard" currency country origin - licences are issued for essential supplies which are not available from easier currency sources.

COUNTRY OF ORIGIN 1936-37, 1937-38,1938-39 1946-47 1947-48 Annual Average 1948-49 £A000 £A000 £A000 £A000 United Kingdom 82 394 1,150 797 Canada 7 11 8 Palestine 6 6 1 France 16 1 United States of America 13 10 2 Other Countries 2 2 1 TOTAL: 105 431 1,192 802 GATT/CP/62 page 24 AUSTRALIA (continued) )CROCKERYANDHOUSEHOLDWARE. . (a) when of Sterling Area origin - exempt from licensing control; (b) when of "easy" currency country origin - licences are issued freely on evidence of availability; (c) adequate quantities of crockery and householdware are available from sterling and "easy" currency sources and licences are not being issued for those goods when of "hard" currency country origin.

1936-37,1937-38, 1938-39 1946-47 1947-48 COUNTRY OF ORIGIN Annual Average. £AOOO. £A000. £A000. £A000. United Kingdom 453 2,931 2,494 2,931 New Zealand - 33 83 63 Czechoslovakia 15 - 13 11 Japan 146 - Netherlands 10 1 Germany 8 - United States of America 1 13 1 2 Other Countries 8 3 18 10 TOTAL: 631 1,450 2,619 3,018 (20) METAL WORKING MACHINERY: (a) when of United Kingdom origin - exempt from import licensing control; (b) when of other Sterling Area and "easy" currency country origin - licences are issued freely on evidence of availability; (c) when of "hard" currency country origin - licences are issued for essential supplies which cannot be obtained from easier currency sources.

1936-37, 1937-38, 1938-39 1946-47 1947-48 COUNTRY OF ORIGIN Annual Average. £A000. £A000. United Kingdom 661 1,037 2,148 2,275 Canada 16 12 21 37 Czechoslovakia 23 12 129 382 Germany 187 76 448 166 Switzerland 21 28 51 32 United States of America 261 594 1,418 633 Other Countries 30 16 38 39 TOTAL: 1,199 1,775 4,2533,564

(21) TRACTION ENGINES, INCLUDING ROAD ROLLERS: (a) When of Sterling Area origin - exempt from import licensing control; (b) when of "easy" currency country origin - licences arc issued freely on evidence of availability; (c) when of "head" currency country origin - licences are issued for essential supplies which cannot be obtained from easier currency sources.

1936-37,1946-47 1948-49 Annual COUNTRY OF ORIGIN Average £A100 United Kingdom 1,066 157 1,853 549 4,029 1,160 13,909 4,319 France - - - 4 14 Germany 485 155 120 66 Italy 10 19 Hungary -- 36 33 United States of America 6,009 1,451 3,839 2,333 5,055 3,068 4,25656 Other Countries 4 1 TOTAL: 7,618 1,773 5,798 2,886 9,278 4,232 19,017 8,708 GATT/CP/62 pages 25/26

AUSTRALIA (continued) (22) MOTOR VEHICLE CHASSIS:

(a) when of Sterling Area origin - exempt from import when of licensing control; (b) "easy" currency country origin - licences are issued freely on evidence of (c) when of "hard" availability; currency country origin licences are issued for essential supplies.

. 1946-47 . 1936-37,1937-38,. 1938-39 1946- Annual . 47 COUNTRYOF ORIGIN Average COUNTRYOF No. 000. ORIGIN £A000 No. 000. £A000. No. 000. £A000. No. 000. £A000.. United Kingdom 26 23 2,867 37 4,148 8,532 78 Canada 27 1,973 31 18,065 United States of 24 4,819 21 America 2,378 13 2,507 4,0822,487 19 Other Countries 2 5 3,732 6 1 80 1 191

TOTAL: 79 7,301 67 11,480 67 15,181 103 23,576 GATT/CP/62 page 27 BRAZIL (Translation)

II. As soon as the lack of balance in international means of payment became more pronounced in the countries with which we traded, it became necessary to make Brazilian imports subject to quantitative control. Having failed to discover a balance of payments which would both offer a non-discriminatory and safeguard the stability of the level of the country'ssolutionexchange operations, we come up against the multitude of specific conditions presented by the other parties to GATT. The unstable financial position of those countries, notwithstanding the provisions of Article XII-2-A of GATT, has prevented Brazil from leaving her transactions with them in their currency free from official control, since their financial position has clearly deteriorated and is subject to trends likely to be detrimental to the continuity of our foreign trade and hence to impair the conduct of the trade we normally do with them. The recovery of the economic potential of the countries which were our suppliers or which absorbed our exportable quotas, chiefly countries affected by the war, has not proceeded far enough to enable us to take the view that the international obstacles to the adoption of a singles non-discriminatory trading system have been abolished particularly as the wide recourse to the inconvertibility of currencies as authorized by the International Monetary Fund ( Article VIII, Section 4, paragraph (b)) has financial implications and consequences which limit the application of the principle of multilateralism in foreign trade relations. Nevertheless, Brazilian control of imports does not in principle discriminate between supplier countries, except as required by the exigencies of our balance of payments with each of them, as sanctioned by GATT. The special law No. 842, of 4 October 1949, which governs such matters, outlines the policy to be followed in the distribution of imports, without laying down restrictions creating obstacles to our trade with other countries or leading to the abandonment of levels already reached under previous purchases. In accordance with the multilateral principle referred to above we do not distinguish between exporting countries except in so far as is necessary for the protection of our hard currency holdings, which are reserved wherever possible for essential investments.

. GATT/CP/62 page 28 BRAZIL(continued) Forthermore, we do not store up such holdings unproductively but put them all to good use either for the payment of essential imports or for the settlement of arrears in trading accounts. Being organized on a purely exchange basis, the system of control employed in Brazil is not characterized by quantitative limitations or restrictions of Brazil's trade relations with the other parties to GATT. Thus, the distribution of Brazilian imports is made without distinction as to source, being determined solely by the general requirements of our balance of payments. Our aim being to maintain Brazil's trade with countries where we have large and not easily usable balances and to enable such countries to retain their normal business in the Brazilian market, we have so far tried as far as possible to maintain the volume of imports and exports at the previous level. In consequence, the control system adopted by Brazil does not distinguish between different classes of commodities with a view to restricting imports thereof, these being governed by the requirements of our balance of payments. * * * The system of controls adopted for Brazilian imports is governed by a technique based on the aims of the exchange regime in force. In principle, import transactions are divided into two groups with a view to the study by the competent authorities of their suitability from the exchange point of view: (a) imports payable in scarce (hard). currencies;. (b) imports payable in non-scarce (soft) currencies. In the case of the former, the amount needed to ensure cover is determined by working out an exchange budget taking account of all sources of income in currencies of the same kind, i.e., hard currencies, and the actual-and imperative obligations of the period under review; after comparing these data and ascertaining the amount of currency which will be available for the payment of imports, we split up the import items which have to be obtained from the areas in which we conduct operations in those currencies. As it is a question of applying budgetary estimates which may be adversely affected by a shortfall in the estimated receipts, the allocation of funds for imports payable in hard currencies will be restricted, as stated above, according to the degree of necessity of the commodities to be imported. However, such allocation, being based on quotas does not imply the establishment of discriminatory distinctions in respect of the provenance or origin of the goods. We proceed in such a way as to enable Brazilian trade with countries not affording us the possibility of maintaining a satisfactory balance of payments to be kept at the maximum level, even where such action entails the complete utilisation of our available exchange resources. To this end, we leave importers full freedom to maintain their normal contracts with foreign suppliers without drawing up preferential classes of imports according to source, in cases where a distinction has to be made for countries with which our trade, expressed in terms of the balance of payments, is subject to universally applicable conditions. Adopting that principle, the favourable effects on the balances of payments make it possible for the quantitative restriet- ions applied to be proportionately reduced, the country's foreign trade, in the case of those currencies, appreaching the level GATT/CP/62 page 29 BRAZIL (Continued)

attained under the regime of complete freedom. In the case of imports payable in currencies in which we have a favourable balance, these are admitted, on the lines indicated above, without quantitative restrictions infringing the principle of non-discrimination. It should be pointed out, however, that we have striven to avoid a reduction of these balances in soft currencies, as allowed for in GATT, in the light of the need - while increasing the use of such currencies, as shown in the steady increase in the volume of Brazilian imports during the past few months - for avoiding further maladjustments in our balance of payments while increasing the number of currencies shown to be scarce in order to meet the country's normal requirements. It therefore emerges that the control policy adopted by the Brazilian Government with regard to national imports and designed to safeguard the balance of payments does not conflict with the principle of non-discrimination set forth in the GATT.

III. As was explained in our reply to Question II the system of import restrictions adopted by Brazil arises from the need to defend the country's balance-of-payments without infringing either of the basic principles of GATT, namely the principle of non-discrimination and the principle of multilateral trade. Law No. 262 of 23 February, 1948, made all imports into Brazil subject to a licence.

IV. The provisions of our imports control system are both general, and in the case of certain products, particular. The measures adopted arise out of our balance-of-payments situation in relation to countries with which we trade. Lastly, the provisions adopted are as already stated in our reply to question II ie, they depend an the hardness of the currency of the supplying country and on the degree to which the product in question can be described as essential. The table on the following page shows import statistics for 10 products which account far 30% of our total imports. The heavy increase noted in 1947 is due to the fact that latent buying power after being held in check for a very long period, found an outlet in large purchases of goods which up till then had been very scarce in international trade.

V. Generally speaking, the present world economic situation has compelled a great many countries to adopt measures apparently non-discriminatory - such as currency devaluation - which have affected the volume and pattern of our export trade, IMPORTS WEIGHT 1,000 tons VALUE -Cr.$ 1,000,000 . PRODUCTS 1938 1946 1947 1948 1949 1938 Jan./Aug. 1946 1947 1948 1949 page 30 GATT/CP/62. Petrol . 361 624 933 1.132 910 173 355 668 742 Oils, fluid and 632 810 1.308 1.727 1.124 112 268 455 828 384 Diesel Caustic soda 25 28 40 58 38 32 45 191 235 96 . Wheat in the grain (see note below) 1,037 212 369 313 300 536 406 1,0581,058 1,146 854 Machines, equipment and apparatus for textile industries 8 4 12 18 13 79 87 316 542 397 Automobiles * 9,637 28,794 11,827 31,971 19,455. 140 222 924 3,034 507 . Lorries, motor- . . bused, ambul- ance cars * 174 2.651 11,313 13,333 13,514 3 76 386 473 319 . . Chassis * 16,117 25,722 22,311 . 101 406 820 819 359 . 19,564 . . Road-making equipment 1 5 9 8 11 14 77 143 144 233 Agricultural implements and machinery 2 4 7 9 8 47 90 175 Impart value of the above 10 products 1,198 1,989 5,051 6,239 4,066 Total value of Brazilian imports 5,196 13,029 22,789 20,985 13,593 Percentage 23% 15.3% 22.3% 30% 30% WHEAT: - The fall in wheat imports has been offset by imports of wheat flour. * Units. C A NA D A I. 1 In order to safeguard its external financial position and balance of payments, Canada is imposing restrictions in accordance with Article XII on the quantity and value of merchandise permitted to be imported. . Your attention is also drawn to the fact that Canada has availed itself of the transitional arrangements in Article XIV of the Articles of Agreement of the International Monetary Fund. II. The general system of Canada's import restrictions to safeguard the balance of payments has been described in The Emergency Exchange Conservation Act*, in the Regulations issued under the authority of that statute, in the annual reports submitted to Parliament on the operation of that Act, and in Order No. S.C. 2-49 of the Steel Controller.** Since copies of these documents have been submitted to the CONTRACTING PARTIES, our answer to this question will be confined to a brief, general outline of the entire system. In accordance with Article XII, 3(b)(ii), certain products and classes of products are subject to import restrictions. Un- der The Emergency Exchange Conservation Act the restricted imports are grouped in three schedules. Schedule I enumerates the list of prohibited products. Products subject to quota are listed in Schedule II, and those products whose importation is subject to a permit issued by the Minister of Trade and Commerce are enumerated in Schedule III or in the analogous regulations stated in the Steel Controller's Order No. S.C. 2-49 of the 23rd September, 1949. In accordance with the terms of Article XIV 1(d), Canada elected to be governed by the provisions of Annex J. The import restrictions imposed on products listed in Schedules I and II have been designed to comply with the rules of non-discrimination set forth in Article XIII. In the case of products listed in Schedule III deviations -- complying with Annex J -- have occurred. Schedule Schedule I contains a list of consumer goods of which imports from all countries are considered to be unessential or postponable.

* Initially the import restrictions were imposed on November 18, 1947 by Order in Council P.C. 4678 dated November 12, 1947. However, as soon as the necessary legislative steps could be taken this Order in Council was supersided by The Emergency Exchange Conservation Act. -Goods** This Order was issued under the authority of Country.in Council Order P.C. 247 of January 23, 1946 and the Continuation of Transi- tional Measures Act, 1947. GATT/CP/62 Canada (Continued) As of December 15, 1949 the active part of this prohibited list -- i.e.. the Schedule contained in The Emergency Exchange Con- servation Act minus those items or parts of items which have been suspended or transferred to Schedule II or Schedule III by Order in Council -- was as follows: Tariff * Item No. Description ex 7 Fresh pork ex 10 Prepared or preserved bacon, hams, shoulders and other pork. 79b Flowers and foliage, natural cut, whether in designs or bouquets or not, n.o.p. 89 Vegetables, prepared, in air-tight cans or other air-tight containers. 90e Vegetables, frozen. 91 Soups, soup rolls, tablets, cubes, or other soup preparations, n.o.p. 99b Fruits dried, desiccated evaporated or dehydrated, n o.p. ex 99e Dates, dried, unpitted. 99g Apricots, nectarines pears and peaches dried, desiccated, evaporated or dehydrated. ex 104a ) Fruit pulp, other than passion fruit ox 105 ) pulp, with sugar or not, and fruits, crushed or frozen. ex 179 Labels fro cigar boxes,fruits, vegetables, meats, fish, confectionery or other goods or wares. ex 184d ) Pericdical publications, unbound or ex 169 ) paper bound, consisting largely of ex 170 ) fiction or printed matter of a simi- ex 171 ) lar character, including detective, ex 184a ) sex, and alleged true or con- fessionwestern,stories, and publications, unbound or paper bound commonly known as comics but not including bona fide supplements used with newspapers. Provided that the decision of the Minister of National Revenue as to whether or not any publication is in- eluded in the foregoing description shall be final and conclusive.

* "ex" designates part of a tariff item. Items not so marked are complete items of the Canadian Customs Tariff. GATT/CP/62 page 33 Canada (continued) Tariff Description ex 192 ) Tarred paper and propared roofings ex 198 ) (including shingles), sheathing, ex 199 ) insulation (not including fibreglass), building board, chipboard, newsboard, strawboard, testboard, corrugated board, and all other similar boards manufactured wholly or in part of vegetable fibres (not including electric insulation board, match stem stock, shoe board, automobile 'board book binders' board and press- board); bristol board, artists' board, photograph mounting board, picture matting board and showcard board; flock coated board or paper; wax coated paper; blotting paper not printed. ex 192 ) Acoustical wallboards, acoustical pads ex 312 ) and acoustical tile of all kinds. ex 711 ) at al ) 192c) *Roofing and shingles of saturated felt ex 193 Paper sacks or bags of all kinds, printed or not (but not including those made from twisted paper). 194 Playing cards, in packs or in sheet form, n.o.p.; cards and sheets partly lithographed or printed, for use in the manufacture of such playing cards. ex 197 ) Cups, dishes or plates, forks, spoons, ex 197b) and drinking straws, made of paper, ex 198 ) cardboard or of vegetable fibres; ex 199 ) paper envelopes; correspondence and ex 181 ) printed letterhead papers not inclu- ex 509 ) ding plain unprinted typewriter or copying papers; creped tissue paper and manufactures thereof; wrapping papor (including box covering paper and wrappers) printed, embossed or otherwise decorated; Christmas seals, stickers, tags and enclosure cards, printed, embossed or otherwise decorated; card and other games, score reckoners, score pads, tallies and place cards, of paper or cardboard; festivity, carnival and celebration supplies and decorations of paper or cardboard including costumes, hats, caps, headbands, masks, horns, serpen- tines and confetti; blank books, photograph mounts manufactured from paper or paper board. 197b Wrapping paper of all kinds, not pasted, coated or embossed. ox 192 ) Papers and paperboards or fibreboards ex 197 ) the surface of which is in two or ex 198 ) more colours or is embossed or ex 199 ) otherwise decorated. GATT/CP/62 PagE 34 Canada (Continued) Tariff Description ex 199b Empty containers wholly or partially manufactured from paperboard or fi- breboard having affixed thereto paper the surface of which is in two or more colours, or is embossed or otherwise decorated. 234 Perfumery, including toilet preparations, non-alcoholic,viz, hair oils, tooth and other powers and washes, poma- tums, pastes and all other perfomed preparations, n.o,p., used for the hair, mouth or skin. ex 237c) Synthetic resin soft sheets or strips ex 711 ) or similar shapes, and manufactures et al ) thereof.

ex 326g High thermal shock resisting glassware but not including industrial or labo- ratory glassware, or glassware parts imported by manufacturers for production use in their own factories.

ex 362c Nickel-plated or electro-plated cutlery and table flatware. ex 414 Typewriters. ex 414a Dictating machines, transcribing machines and cylinder shaving machines, ex 414c Adding machines. 415a Refrigerators, domestic or stores completely equipped or not. ex 415b Clothes wringers, domestic.

ex 427 Outboard motors. Pleasure boats of all kinds. 444b Lamp shades, n.o.p., and shade holders. ex 445 Electric light fixtures and appliances, n. o .p.(notincluding industrial electric light fixtures, or parts). ex 445a Electric flashlights. Incandescent electric light lamps.

ex 445d Radio receiving sets and cabinets and chassis therefor.

ex 445e Dry cell batteriess, n.o.p. ex 445i Electric sad irons. ex 445j Electric dry shaving machines ex465 Electric signs of any material. GATT/CP/62 Canada (Continued) Page 35 Tariff Description Item No. 468 Bird, squirrel and rat cages, of wire, and metal parts thereof. 512) Picture frames, photograph frames and ex 506) mirror frames, of any material. et al ) ex 515 Show-cases of all kinds 597 Pianofortes and organs ex 597a Phonographs, graphophones and gramo- phonese. ex 618b Passenger automobile tires. 624) Bead ornaments, and ornaments of ela- et al) rL'arIr spar,amber, terra cotta, composition, or other material except china or porcelatin; fans of all kinds; statues, statue.tes, of any material other than porcelain or earthenware. Jewellery of any material, for the adornment of the person, n.o.p. ex648 Precious and semi-precious stones (other than diamonds) whether genuine or synthetic; pearls, whether genuine or cultured, and imitations and simula- tions thereof. ex 655 Fountain and ball point pons ex 655a Propelling pencils ex 689a Mineral wool, but not including fibre glass ex 711 Floor or wall tile.having an asphalt base ex 711 ) Domestic water heaters; public address ex 362c) and communication system; humidifiers ex 427 ) (but not including industrial humidi- ex 446a) fiers); chemical permanent waving preparations; et al ) Soda fountains; bars; ice-cream cabinets and beverage cabinets; brverage dispensing and mixing equipment; gasoline pumps; Punch boards and pin-ball games, vending machines, games, amusement devices, phonographs, radios musical. instruments, scales, parking meters,. locks and lockers, coin-, disc-, or token- operated; Cigarette or cigar lighters (but not to include lighters provided for in Ta- riff Item 438 (c); Air-conditioning units and apparatus designed for household or office use; GATT/CP/62 Page 36 Canada (Continued) Tariff Item No. Descrition ex 711) Electric iixers, ironers and dish-wash- ex 362c) ers, designed for household use ex 427) Cases, boxes bowls , baskets, bottles, ex 446a) dishes and trays adapted for personal, et al) household or office use, or for the cont'd) packaging of goods for retail sale, of which the component of chief value is copper or electroplated metal, not including industrial containers un- suitable for retail sale; Ash trays and receivers desk sets and bases or holders for blotters, pens or pencils; book-ends; paper weights and paper knives; Christmas tree decorations of all kinds, including lights and fittings therofor; vases and jardinieres; Electric heating pads and blankets; Juice extractors; amusement rides and devices; hair waving and drying machines; display decorations; lipstick holders; electric fans; floor polishers atomizers; pencil sharpeners; radio cabinets finished or unfinished door chimes; domestic garbage disposal units; ski racks; watch straps and bracelets; bowls7 trays and dishes of wood. The Act provides that no person shall import or attempt to import goods listed in any of the three Schedules except in accordance with a permit and that in the case of goods listed in Schedule I no permit shall be issued unless in the opinion of the Minister exceptional hardship would result if a permit were not issued. The principal types of exceptional hardship which were re- cognized in the administration of this Schedule during the first year are fully described on pages 2, 3, 4 and 5 of the First Annual Report on the Administration of The Emergency Exchange Conserva- tion Act (Schedules I and II). An Appendix to that report gives the number and values of such special permits issued in the period to November 307 1948. These data and similar data for a later periods which are given in the Second Annual Report, emphasize the non-discriminatory basis on which these permits were issued. Many of the permits issued to deal with cases of exceptional hardship related to particular transactions. However others were in the form of general permits covering specified classes of goods imported from any country. Open General Permits which were in effect as of December 15, 1949, although they could be cancelled at any times were as follows: F.E.C. 120 -Supplies for Fraternal Organizations, Service Clubs, etc. F.E.C. 121 - Woven Union Labels. F.E.C. 123 - Prohibited Publications,- School Publications. F.E.C. 124 - Supplies for Trappers and Residents of Old Crow, Yukon Territory. F.E.C. 125 - Tourists effects. F.E.C. 126 - Casual Gifts - Wedding Gifts. F.E.C. 127 - International Pacific Salmon Fisheries Commission. GATT/CP/62Page37 Canada (Continued.) F.E.C. 128 - International Pacific Halibut Fisheries Commission. F.E.C. 129 - Incidental lots of prohibited or quota goods in shipments. F.E.C. 130 Goods for Canadian branch, division, agency or office of a foreign transportation systems telegraph company cable company or other public utility. F.E.C. 131 - Foreign commercial photographers supplies. F.E.C. 132 - Commercial travellers samples F.E.C. 133 - Game shot by residents of Canada. F.E.C. 134-Display cases or stands for clinical thermometers. -Display Boards, Stands or Cases. F.E.C. 135 - Schedule I goods for Department of National Defence. F.E.C. 136 - Schedule I goods under Tariff Item 445b F.E.C.137 - Goods designed solely for Religious Purposes. F.E.C. 138 - Envelepes for use with Greeting Gards. F.E.C. 139 - Reserved for later use. F.E.C. 140- Schedule I Items as if in Schedule II. F.E.C. 141- Cutlery, Knife Blanks, etc, F.E.C. 142 - Component parts for production use. F.E.C.143 - Synthetic resin sheets for manufacturing laminated glass. Since the middle of 1948 improvement in Canada's foreign exchange position has made it possible to suspend many items from the prohibited list and to transfer other items from the prohibited to the quota list. In the cases of a few items (typewriters dictating machines, adding machines, and goods covered by General Permit F.E.C. 140) provisions was made for limited imports under quotas, but mainly for administrative reasons these items were not formally transferred from Schedule I. In making such suspen- sions and transfers an attempt was made to relax or remove prohibitions which had resulted in widespread hardship to either Cana- dian importers and consumers on the one hands or to foreign producers and exporters on the other. Such relaxations had the incidental effect of reducing the need for special or general import permits. For example, some basic vegetables included in Schedule I had been allowed importation from time to time under General Permit (No. 122). However on October 1, 1949 all items relating to fresh fruits and vegetables were suspended in their. entirety from the provisions of the Act. Schedule-Goods Subject to Import Quota. The commodities listed in Schedule II -- which are permitted entry under quotas - - were grouped into the following five categories: (1) Fruits and Vegetable.s;(2) Textiles; (3) Leather, Leather Products and Related Goods; (4) Miscellaneous; (5) Pre- pared Foods. Provision was made for a separate quota on each category. In addition, and in accordance with Article XIII, 2(d), for the purposes of administering this Schedule the regulations made under The Emergency Exchange Conservation Act divided all countries into two classes - Scheduled countries and non-Sche- duled countries Scheduled countries are those which were not kown to be in balance of payments difficulties and are listed in the regulation's as: Cuba Dominican Republic, Guatemala Haiti Panama, El Salvador, Switzerland, Union of Soviet Socialist Repu- blios, United States of America and its possessions, Venezuela. The First Annual Repprt on the Administration of The Emer- gency Exchange Conservation Act (Schedules I and II) describes the manner in which the quotas under Schedule II were set up, as follows. GATT/CP/62 Page 38 Canada (Continued) "The total import quota for each category and from each class of country is 200 per cont of the average annual value of imports of goods in that category and from that class of country in the calendar years 1937, 1938 and 1939 (except that for Category 2 - textiles - the quota is 400 per cent of the 1937-39 average). The total import quota for each category of goods is allocated among individual importers pro rata on the bass of their share in the imports of such goods during the base year, which Is defined as the twelve months July 1, 1946 to June 30, 1947. "For example the average annual imports into Canada of all goods listed in Category 2 (textiles) in the years 1937-39 was $10$300,000 from scheduled and $30,800,000 from non- scheduled countries. The total annual quota, at 400 per cent of 1937-39 is therefore $41,200,000 for scheduled countries and $123,260,000 for non-scheduled countries. The actual imports of those goods in the %-6-47 base year was. $138,000 000 from scheduled countries and $52,400,000 from non-scheduled countries. In the case of scheduled countriees, therefore, the permitted annual quota is approximately 32 per cent of the actual imports in the 1946-47 base year, and each individual importer was entitled to az.- annual quota equal to 32 per cent of his own base year imports (issued. in four equal quarterly instalmonts). In the case of non-scheduled countries the permitted quota Under each category was so greatly in excess of the current rate of imports that the regulations under the Act suspended the requirements of permits for imports from non-scheduled countries. "The annual quotas established for scheduled countries for coach category, expressed as porcentages of the 1946-47 base year were: Category 1 (Fruits and Vegetables) 50 per cent 2 (Textiles) 32 " 3 (Leather and leather products) 68 " 4 (Miscellaneous) 42 "" 5 (Prepared Foods) 28 "" The quota applicable to Catogory 1 was increased on two occasions (October 1, 1948 and April 1, 1949) and then all import restrictions were removed entirely from this Category as of October 1, 1949. The other four categories are still in operation. although all of the quota rates have boon increased. Morcover ex- quota permits have been issued or additionala quotas established in certain cases of exceptional hardship. The general principles governing the issue of these permits and the establishment of additional quotas are set out in the Annual Reports. The prosent quota rates as fixed by Order in Coumcil P.C. 1200 of March 22, 1949, effective April 1, 1949, are as followes: Per Cent of Fer Cont of Year Representative July 1,1.946 to Period - Years June 36, 1947 1937-1938-1939(Scheduled Countries) Category 2 (Textiles) 520% 40% Category 3 (Leather Products and Related Goods) 250% 76% Category 4 (Miscellaneous) 250% 50% Category 5 (Prepared Foods) 250%44% GATT/CP/62 Page 39 Canada (Continued) SCHEDULE III AND PRIMARY IRON AND STEEL In contrast with the first two schedules, Schedule III deals with imports which must be considered on the merits of the &.dui case to a large extent. Capital goods and production materials are included in this section and it is undesirable to make decisions in this field by means of mechanical formulae applied to the authorization of imports. Capital goods imports are generally spasmodic so that an arbitrary percentage of some base period amount is inappropriate as a means of restriction. Similar problems arise sometimes in connection with production materials and parts. At the same time, it is to be emphasized that the procedures actually followed were designed to be in accordance with the obligation assumed under the General Agreement on Tariffs and Trade. Where import restrictions are to be justified under Annex J, it will be noted in what follows for example, that careful attention was paid to section 1.(a) (i) of that Annex, and that importers were not forced to turn to sources of supply where substantially higher prices prevailed. As in Schedule II, for the purpose of administering this Schedule, all countries are divided into two classes - Scheduled and Non-Scheduled Countries. Two types of permits are employed to allow Schedule III importations: individual capital goods import permits (form No; GG 101) and allotment permits (form No. GG 105). The GG 101 permit is issued to importers who do not have a regular and continuous pattern of importations. It is always issued to cover a particular shipment which is described on the face of the permit. The GG 105 permit is issued to importers who have continuous and regular pattern of importations. It is issued annually to meet the importers requirements for a specific class of goods. The permit is endorsed with the tariff items under which the importer may enter his goods and the value of each shipment is deduc- ted from the total value of the permit until it either expires at December 31 or until the entire allotment has been used. The two permits are used to cover the following types of importations. Individual Capital Goods Import Permits 1) Motor vehicles and parts from non-scheduled countries; 2) Irregular shipments of special types of motor v';icles from scheduled countrie. Irregular shipments of machinery and equipment from all countries. 4) Irregular shipments of production materials and parts from all countries. Alletment Permits 1) Regular shipments of motor vehicles and parts from scheduled countries which are types not made in Canada. 2) Regular shipments of production materials and parts from all countries. 3) Regular shipments of merchandise for resale from all countries. GATT/CP/62 Page 40 Canada (Continued) 4) Regular shipments of capital goods from all countries. Thus the four types of goods affected by Schedule III of the Emergency Exchange Conservation Act are motor vehicles and parts, production materials and parts, capital goods and merchandise for re-salo. Motor Vehicles and Parts The Canadian motor vehicle industry manufactures American- type vehicles so that it is highly dependent upon imports of production parts and materials from the United States. All the Cana- dian manufacturers have been is sued allotment permits and their quotas have been determined on the following basis. The industry- average American content of Canadian made vehicles was determined as $307 per vehicle. 75%, or $230 per vehicle was then allowed each manufacturer. The vehicles included hero are passenger automobiles and trucks of less than 16,501 pounds gross vehicle weight. For each vehicle which was produced and imported complete in the representative period - the year ending October 31, 1947, the manufacturer was allowed to import $230 of parts and materials from the United States in the calendar year 1948. In 1949 each total allotment was increased by 33.3% to the original $307 per vehicle. Before import controls were introduced Canadian manufacturers had followed the practices of importing rotor vehiclos from the United States for sale in Canada to supplement their own production. At present. Canadian Manufacturers import very few completed American vehicles since this would reduce the value of parts and matorials which they could otherwise import under their allotment permits and so reduce their Canadian production. Canadian distributors of American vehicles which are not made in Canada were allowed $230 for each vehicle which they sold in the year ending October 31, 1947, and these quotas were increased by.33.3% in 1949. Dealers in automotive parts and accesseries were also allowed 75% of their base period imports in the year ending October 31, 1947. Individual capital goods import permits arc granted for some imports of vehicles and pats from the United States. This is done for irregular shipments such as gifts of automobiles, special types of automobiles, trucks of 16,501 lbs. gross vehicle weight and over ambulances, hearses and some buses. These applications, apart from gifts, are considered on the basis of their essentiality to the Canadian economy as well as their availability elsewhere, individual capital goods import permits are issued for imports of motor vehicles and their parts from non-scheduled countries, Thus every shipment entered from those countries must be accompanied by its particular permit. In general these permits are freely granted.

Schedule III controls the imports of a large amount of those typos of goods. For example parts for stoves,refrigerators, vacuum cleaners washing machines,radios andtelevision sets are all under import control. In Canada a substantial percentage of this sort of equipment is manufactured by branch plants of American conpanies. Therefore, these firms, like the motor vehicle manufacturers are highly dependent upon American parts to maintain their production. The system of determining allotments for these typesProductionof goodsMaterialsis the andPartssame as that for motor vehicle parts. GATT/CP/62 Page 41 Canada (Continued) That is, the industry-average United States content for each product is first determined and a percentage of this is then. allowed each manufacturer multiplied by the number of units he produced and imported complete in the year ending October 31, 1947. The exact percentage varies somewhat depending upon the particular product. For example stoves are allowed 100% whereas radios are allowed 70%. In 1949 the allotments for manufacturers of stoves, refrigerators office machines and radios were increased by 25%. There are special regulations covering the establishment of new firms in Canada who were not in business in the year ending October 31, 1947. If these firms are branch plants of United States companies and require continuous imports of production parts from that country, they are generally granted allotment permits based upon their proposed production and the industry- average United States content for the product which they intend to manufacture. If they are branch plants of United Kingdom or other non-scheduled countries' companies and also require continuous imports of production parts from those countries they are generally granted their applications commensurate with their proposed production, Since so few of these letter companies were in operation in the year ending October 31, 1947, it has not been possible to arrive at industry-average foreign content for them. If these latter applicants wish to import from thescheduled countries they must be governed by the rules which apply to importers entering goods from those countries. In general the administration has not so reduced applicants' supplies of imported parts that the operations of their plants are jeopardized. Because of this any applicant, regardless of his source of imports, is granted an additional allotment if he can prove that he has had to reduce production because of an insufficient supply of parts. No applicant, because he has exhausted his allotment from the scheduled countries, has been forced to commence importing parts from the non-scheduled countries. In practice it has been found impossible to transfer sources of parts' supply between countries. Capital Goods In general these imports are applied for on an individual capital goods import permit regardless of their country of origin, provided the shipments are not regular and continuous. The practice is not to allow importations of capital goods from the scheduled countries if they are readily available at a reasonably equivalent price elsewhere. If, however, delivery is slow from suppliers or if the prices are too high, then the import from the scheduled countries is authorized. Those applicants who import capital goods, regardless of their origin, in a regular pattern are granted allotment permits, provided the unit values of their importations are less than $1,000. If the unit values arc more than $1,000, they must import on individual capital goods import permits. In the case of construction equipment importers the unit value is $10,000. These applicants are granted specific percentages of the various tariff ito . under which they wish to import. Merehandise for Re-sale In general most of this type of Canadian imports are obtained from the scheduled countries. Those importers who require these goods in a continuous flow from the scheduled countries are pageGATT/CP/62 42 Canada (Continued) generally granted allotment permits. A specific percentage of the value of the goods entered in the year ending October 31, 1947, under each tariff item is granted. These percentages vary between 100 % for tariff items covering goods not r.--if. in Canada and 75 % for tariff items covering less essential goods. Impor- ters not in business in the base year must import on individual capital goods import permits. Before these latter permits are approved the importer must have attempted to obtain the same goods at comparable prices elsewhere. Importers requiring goods from the non-scheduled countries in a steady flow are generally granted their requirements. If their imports are non-continuous they also must import on an individual capital goods import permit. In general these permits are approved freely. Export Bonus The administration has established an export bonus system whereby Canadian manufacturers are permitted to increase their imports from the scheduled countries in exchange for exports. These manufacturers are allowed 50 % of the Canadian content of their increased exports plus the foreign content of the exported goods. It is possible to allow increased imports from the scheduled countries in exchange for exports to any country since Canada received payment in dollars for all its exports. PRIMARY IRON AND STEEL At present Canada does not produce a sufficient supply of primary iron and steel to meet its own requirements and is thus heavily dependent upon foreign sources. The main source of Cana- dian imported steel has always been in the United States. The Canadian steal industry has been confronted with great difficulties since the war. It was expanded to meet the special requirements of the wartime period and at the tame time steel production and consumption were under strict control in wartime by agreement between Canada and the United States, Following the war there was a continuous shortage of steel in Canada and the United States and the Canadian steel industry was subject to control until the present year when it was able to undertake its real economic adjuste- ment to peacetime conditions. Because of the continuous controls. in this industry this adjustmenthad been long delayed and the policies followed in 1949 really found their roots in the wartime period. Tariff items containing mainly structural steel were included in Schedule III from the very beginning but it was never necessary to put these under effective import controls During the postwar period until the fall of 1949, due to the world wide shortage, Canada had difficulties in obtaining sufficient foreign steel to meet its essential needs. For this reason the actual imports in 1947 and 1948 were below rather than above the level to which the procedures of the Emergency Exchange Conservation Act would otherwise have restricted them. The shortage was so acute in the United States that the Canadian Government was req;.e 1.. by the United States government to limit Canadian imports of primary steel from that country. Accordingly restrictions were placed on imports on October 25, 1948. This was done under the Export and Import Permits Act, since the import restrictions in this case were ar- ranged by agreement between the United States and Canada, the two governments concerned. These restrictions continued until May 2, 1949,when it was found that demand for steel in the United States had declined sufficiently to permit removal of the controls on all items except steelscrap. However, Canadian firms had such a large back-log of (Continued)GATT/CP/62Page43Canada duplicated orders in the United States resulting from the previous scarcity that once the restrictions were removed, Canadian imports from the U.S. reached higher levels than in any previous year and it was necessary to take account of the effect of this Upon the Canadian balance of payments. In 1948 Canada imported a total of 936,000 tons of steel from the United States in the first nine months of 1949 alone these imports amounted to 965,000 tons. With this flood of imports it became necessary for the Canadian government to re-impose the import restrictions, this time as a balance of payments measure. These restrictions were imposed by the Steel Controllerts Order No. S.C..2-49 of September 23 1949. To facilitate administration the Steel Controller uses techniques similar to those employed by the Schedule III administration. The individual capital goods import permit is employed for all applications to import regardless of the country of origin of the imports. The import controls on steel have had very little effect during the period they have been in force, because they were designed in the beginning as a selective screening to get at a few specialized items and there have been few applications to import under these particular headings in the meantime. The Representative Period in Schedule III It was unavoidable that a postwar period be chosen as the representative period for determining allotments. The year ending October 31, 1947 was chosen after careful study of the structural changes which had taken place in Canadian industry during the war years and due regard was given to the prospects for the future. The large scale industrial expansion which took place in Canada during the war did not affect all industries in the same degree, quite naturally. Some of them increased their capacity by a much larger proportion than others and their requirements for imported materials and equipment were similarly affected. Thus there was no prewar year nor combination of prewar years which could be chosen as a basis of import allotments if the requirements of new industries and of expanded industries were to be met. Un- der these circumstances it was essential that a postwar year be chosen. While capital equipment has frequently been imported from countries other than the United States, imports of production material and parts have been small in the past. This was the c&n because, until 1948 and 1949, very few firms from these countries had established branch plants in Canada. During and after the war it was difficult to obtain goods of all kinds from sources outside the Western Hemisphere. Thus it was not possible to establish allotments based upon the year ending October 31 1947, for the few firms which wished to commence importing parts from non-United States sources in 1948 and 1949. For this reason some technical discrimination in favour of imports from the non-scheduled countries was inevitable (see pagelO). Where discrimination occurred it was administered in accordance with the requirements of Annex J. Deviations from the rules of non-discrimination. It should be said that while no statistical estimate can be given of the amount of imports thus coming under the terms of Annex J, the total is not large. Roughly 90 % of the imports under Schedule III are obtained in the United States, and all of these are imported into Canada under the rule of non-discrimination. The remainder of the imports which enter from countries other than the United States may be subject to discrimination in certain GATT/CP/62Page44Canada (Continued) instances, For example, there are some goods which because of their quality or related reasons, normally come from the United Kingdom and other overseas countries; in all cases the supply of these has increased since 1947. Considering these factors it is obvious that the proportion of Schedule III imports which are likely to fall under Annex J is quite limited. It is not possible, however, to give an absolute figure on the value of the goods falling under the provisions of Annex J. The main reason why this is so is because it is not at all possible, through the. use of official import statistics to separate out those goods from the non- scheduled countries which would enter Canada if there was no import control program. For example if no controls exist- ed on the import of automobiles there would still be considerable Canadian importation from the non-scheduled countries. But the extent of this normal importation, although known to exist is doubtful. A further reason why no figure can be given is that a fairly wide range of the goods which are listed in Schedule III are subject only to a cursory screening and hence are not under full import control. Those goods which Canada does import under the provisions of Annex J are supported by a very definite price policy. When importation is approved under Schedule III the administration always allows importers to obtain their goods in the scheduled countries if such goods are not obtainable at reasonably comparable prices in the non-scheduled countries. The initiative of purchasing the goods lies completely with the importer as to the price he wishes to pay and the types of goods he requires. All that the 7X;:z-rian government does is direct importers into those markets, either foreign or domestic, which can supply goods at reasonable prices and delivery dates. Since Canada has no bulk purchasing plan for Schedule III goods Canada's machinery imports, during the whole of the control period, from all countries have been of very comparable prices. Canada does not have any "arrangement" under Annex J "by which the gold or convertible currency which (Canada) currently receives directly or indirectly from its exports... is appreciably reduced below the level it could otherwise have been reasonably expected to attain". III. The system of import restrictions introduced by Order in Council on November 18 1947 was incorporated without any basic revision in The Emergency Exchange Conservation Act. The changes which have been made since January 1, 1948 have occurred in the form of adjustments to Schedules I, II or III to The Emergency Exchange Conservation Act.

The only additions made to Schedule I since January 1, 1948 were those resulting from An Act to amend The Emergency Exchange Conservation Act, which was assented to on June 30, 1948. This Act made minor changes in the wording of two existing items and added the following GATT/CP/62Page45

Canada (Continued)

to Schedule I: Acoustical wallboards,acoustical pads and acoustical tile of all kinds. Synthetic resin soft sheets or strips or similar shapes, and manufactures thereof. Floor or wall tile having an asphalt base. At first the relaxations were confined to the issue of permits -- for example, Open General Permits were issued for the importation of cabbages and carrots between the time when domestic supplies from the 1947 crop wereexhausted and 1948 crops became available. At a later stage much more extensive relaxations were made by rder in Council. There were three major steps, as described below. (a) P.C. 5732, dated December 10, 1948, effectiveJanuary 1,

This Order in Council suspended import prohibitions on the following goods: Fresh and canned meats (except pork); poultry and game; eggs; yeast; prepared cereal foods;. peanut butter; condensed milk; beans; peas; honey; nuts in the shell; oysters and other shell-fish; syrups; cigars and cigarettes; paper towels,napkins and doilies candles, lubricating oils and greases; wet cell batteries; non-electric signs; door frames and sash; synthetic casings for meat; andirons; and brass or bronze cases, boxes and trays. The following goods were transferred from the prohibited list to the quota group: Bathtubs, and other iron or steel plumbing fixtures, stoves furnace and other cooking and heating equipment, furniture, all kinds of dressed furs and manufactures of fur, slide fasteners, umbrellas, buttons, wallpaper kitchen or household hollow-ware, cameras, binoculars and cocoa powder. Domestic sewing machines were transferred from the prohibited list to Schedule III. Unmanufactured leather and che ses are suspended from Quota Categories 3 and 5, respectively, and became unrestricted. This Order in Council alsoprovided that the import restrictions under The Emergency Exchange Conservation Act should no longer apply to incidental personal purchases -- when entered under Tariff Item 703(b) -- valued at not more than 100 which are made abroad by Canadians who have been out of Canada not less than 48 hours. (b) P.C. 1200, dated March22,1949, effective April1,1949: The principal relaxation made by this Order in Council GATT/CP/62Page46

Canada (Continued)

took the form of a general increase in quotas of approximately 25 p.c. from the original level. In the case of Category 1 an interim increase had been made six months earlier. This Order brought the quotas up to the present level's set out in the answer to Question 2. In addition to the general increase in quotas on goods under Schedule II a few items (glass articles designed to be cut or mounted and certain hat braids and hat bands) were dropped from this Schedule. The following items were suspended from Schedule Lumber, including veneers and plywoods; paints varnishes and lacquers; gummed paper; mirrors of glass and silvered glass; and machine-nade tumblers and decanters of glass.

(c) P.C. 4915 of September26,1949andP.C.4916of 27, 1949, both effective October 1,1949: The first of these Orders in Council suspended all remaining import restrictions affecting fresh fruits and vegetables. The second Order removed clocks and watches and movements therefor from the list of goods subject to quota. As indicated by the preceding paragraphs, in the period since January 1, 1948, the non-discriminatory quantitative restrictions imposed by Canada on the importation of consumer goods specified in Schedule I and II of The Emergency Exchange Conservation Act have been relaxed greatly. A convenient consolidation of these changes is available in Order in Council P.C. 5702, dated November 10, 1949. A copy of this Order is attached. Schedule III and PrimaryIronandSteel The import control program was originally implemented in November 1947. But since there were a great many administrative problems to be solved it was decided to put the various tariff items in Schedule III under import control gradually. Thus by July, 1948, nearly all of the items listed in the Schedule were under import control. From then until the endof 1949, no majorchanges have taken place except/the Increaseinthe quosa to various producers which have been mentioned in answer to Question 2. So far as steel is concerned, it was only put under import control, as a balance of payments measure, at the end of September, 1949. GATT/CP/62 Page 47 Canada (Continued) IV. Schedule 1 and 11 The annual reports submitted to Parliament, together with the information submitted in reply to questions two and three,seem to cover the requirements of this question in so far as Schedule 1 and 11 are concerned. Schedule 111 and Primary Iron and Steel In Question 2 a great deal of detail has boon supplied relative to all the types of goods under import control by Schedule III and by Steel Controller's Order. Honce the first part of Question 4 is considered to be already answered. In reply to the second part of Question 4: "describe the effects that existing import restrictions have had upon the distribution among sources of supply from which (Schedule III) imports are obtained". Clearly it is not possible to supply definitive figures on changes in sources of supply due to import controls alone. Although import restrictions have increase. imports from the non-scheduled countries, other factors such as post-war rehabilitation in Europe, have also contributed substantially to this effect. Nevertheless the following table shows the percentage distribution by value of Canadian Schedule III imports. It is submitted to indicate changes which have in fact taken place in recent years although it is impossible to know what part of these changes are attributable to the import controls. All Schedule III Imports 1939 1947 1948 1949 U.S. 88.7 95.9 91.0 88.0 U.K. 8.8 3.7 7.8 10.8 Other 2.5 .4 1.2 1.2 Motor Vehicles and Parts Imports 1939 1947 1948 1949 U.S. 98.4 98.4 87.3 80.7 U.K. 1.6 1.5 12.5 18.9 Other - .1 .2 .4 Schedule III Imports Less Motor Vehicles and Parts 1939 1947 1948 1949 U.S. 83.6 94.8 92.1 90.7 U.K. 12.6 4.7 6.2 7.8 Other 3.8 .41.7 1.5 GATT/CP/62 page 48 Canada (continued)

V. Because discrimination occupies a relatively insignificant place in the Canadian system of import restrictions, it is difficult for us to distinguish the precise effects caused by this small element of discrimination upon our own export trade. Although the formal requirements of Annex J have been complied withy in the occasional use made of discrimination, the desire to assist countries whose economies have been disrupted as a result of World War II has been an important consideration in Canadian policy. To the slight extent that discrimination has in fact produced an effect it is our belief that the action has resulted in a larger inward flow of the particular goods involved from those countries whose adverse balance of payments position has been a matter for world wide concern and comment. Discriminatory import restrictions imposed by other countries have had, on the other hand, a definite contracting influence upon Canada's export trade.

Supplementary Note The Canadian import controls described in the foregoing submission were relaxed considerably on April 1st, 1950. Further relaxations to become effective July 1st, 1950, have been announced. The most important changes on April 1st were: (1) The termination of all import controls exercised under the steel controller, order number SC 2-49 of September 23rd, 1949. (2) An increase in the quota for category 2 (textile) of Schedule II of the Emergency Exchange Conservation Act. (3) The suspension of all import restrictions on ten classifications of goods listed in the Emergency Exchange Conservation Act and the transfer of 2 items from the prohibited list to the quota list. Official notice has been given that effective July 1st, 1950, a number of further items (including refrigerators washing machines, outboard motors, radios pianos phonographs and canned vegetables) will be taken off the prohibited list and transferred to quota. These changes will eliminate most of the remaining outright prohibitions on imports. GATT/CP/62 page 49 C E Y L O N (by cable).

II. The general system of import control is as follows: (a) Annual estimates of exchange available for expenditure on merchandise are made, these estimates being subject to periodical review. Ceiling values are fixed for the different items of merchandise to be imported. These values are nearer estimated requirements in the case of essential goods and diverge from requirements with decrease in essentiality. (b) Essential foods such as rice and sugar are imported only. by the government. All other commodities come either under open general licences or are subject to individual licensing. Open general licences allow importation without licences of certain goods from one of two areas, namely (1) India, Pakistan, Burma and Maldive Isiands or (2) the British Commonwealth other than Canada, New Foundland and Hongkong, Goods under open general licences are those for which liberal ceiling values have been allowed (i.e. essential goods such as cotton textiles) or those which are not to be imported in excess of the ceiling values fixed because of high duties (e.g. whisky). (c) In the case of all other commodities imports from hard- currency sources are allowed only on grounds of essentiality and non-availability from soft currency sources and if hard currency is available. (d) With above considerations in view quotas are issued to importers. In some cases these quotas have relation to imports in recent years. In others they are distributed among importers on an equitable basis. In the case of goods of high essentiality global quotas are issued or a part of the quota is allowed to be imported from hard- currency sources. In the case of less essential goods quotas have to be used for imports from soft-currency sources only. (e) Imports of some commodities available locally (e.g. tea) are prohibited. (f) Further details regarding administration of control will be found in copy of import control manual and supplement which are being forwarded by fast airmail. III. No significant changes in policy have been made since 1948 except reduction of coiling values in certain commodities and in the values of imports permitted from hard currency areas for less-and non-essentials. IV. A statistical annex appears on the following pages. V. Acthing of special interest to report at present. GATT/CP/62 page 50 (continued)CEYLON (Annex) Statistics relating to the distribution of imports among "Con General Licence" Sources and "0ther" Sources.

1938 1947 1948 (Jan/Oct)1949 a. of Total - -Value-4 imports 235,530 962,580 994,000 844,830 b. Value of Commodities listed ----- 100,173 490,163 564,716 429,699 c. (b) as a percentge of (a) 142.5% 51% 57% 51%

Quantity from all sources(000cwt) 10,442 5,163 8,188 Quantity from OGL sources 99 029 2,840 6,013 Total Value from all sources (Rs/000) 51,340 134,987 236,115 196,714 Total Value fro: OGL sources (Rs/000) 47,514 63,711 165,642 124,118 2. What Flour. Quantity from all sources(: _ocrt) 314 5,862 3,206 Qaantity from OGL sources " 19 8 Total Value from all sources (Rs/OCO) 1.884 146,164 97,212 66,242 Total Value from OGL sources (Rs/000) 100 226

3. Sugar Refined - other than cancy. Quantity from all sources(000 cwt) 1,416 1,947 1,887 558 Quantity from OGL sources " (under licence from all sources.) Total Valuefrom allsources (Rs/000) 7,803 40,523 42,696 11,381 Total Value fror OGL sources -

Milk4. - Quantity from all sources(000 cwt) 95 75 Quantity from CGL sources " Total Value from all sources Rs/000) 1,168 6,372 1,909 Total Value from OGL sources

Quantity from all sources(000cwt) .14 24 10 8 Quantity from OGL sources " Total Value from all sources (Rs/000) 3 1,066 458 Total Value from OGL sources - - GATT/CP/62 page 51 CEYON (continue, 1938 1947 1948 (Jan-0ct)

6. Milk Foods. Quantity from all sources(000cwt) 7 49 47 16 Quantity from OGL sources " - Total Value from all sources (Rs.000) 1,394 11,604 9,674 3,377 Total Value from OGL sources (Rs.000) - 76 7. Onions. Quantity from all sources(000cwt) 662 626 635 166 Quantity from OGL sources " - under licence from all sources - Total Value from all sources (Rs.000) 2,053 8,208 9,635 2,818 Total Value from OGL sources (Rs.000) - - 8. Potatoes. Quantity from all sources(000cwt) 270 420 1 77 Quantity from OGL sources " 48 26 .1 .1 Total Value from all sources (Rs.000) 1,276 11,589 8,193 1,029 Total Value from OGL sources (Rs.000) 258 561 2 .8

Articles whollyor mainly manufactured. 9. Cotton Piecegoods. Quantity from all sources (000 yds) 63,474 57,734 74,204 80,251 Quantity from OGL sources (000 yds) 38,790 28,596 37,255 38,680 Total Value from all sources (Rs.000) 15,300 99,666 113,521 99,882 Total Value from OGL sources (Rs.000) 10,869 47,324 60,562 56,468 10 Mineral Oils. Quantity from all sources (000 gals.) 21,228 28,341 34, 634 33,554 Quantity from OGL sources (000 gals.) 1,589 5,208 4,484 5,673 Total Value from OGL sources 10,407 20,350 18,039 Total Value from OGL sources 13,950 (Rs.000) 855 2,598 3,077 3,707 11. 1~ }1 9~'~of all Kinds. Quantity from all sources(000cwt) 54 2 117 145 Quantity from OGL sources " 49 81 92 96 Total Value from all sources (Rs.000) 4,444 20,378 Total Value from OGL sources 16,034 27,850 (Rs.000) 3,147 12,936 15,716 18,607 GATT/CP/62 Page 52

I. The reply to the first question is in the affirmative. This is in accordance with Article XII of GATT, and also complies with the obligations derived from the acceptance of the Agreement with the International Monetary Fund. The necess't,!1'- which imposed the adoption of this measure is indicated by the tendency towards deficit shown by our balance of payments, In fact during the year 1946 this deficit reached US $45,139,898,and in the year 1947 to US $45 342,690. In the year 19148, thanks to the measures adopted,it was possible for the balance to show a slight credit (US $5,500,000) but in the year 1949, due to the sudden fall in the world price of copper, an even graver problem had to be faced, as it was calculated that due to this a smaller income of about US $50,000,000 in foreign currency would be produced.

II. The general system of restrictions imposed on imports operates in accordance with two laws. (a) Law No. 5107, of April 1932, which gave the distribution of the availabilities of foreign exchange to the Commission on International Exchange in compliance with certain priorities established by said law, and (b) Law No. 8403,of December 1945, which on approving the International Monotary Agreements of Bretton Woods established the obligation to prepare an annual Foreign Currency Budget. In accordance with the last mentioned law, the Government should prepare annually a budget of foreign currency, in which logically, debits and credits should be balanced. The Ministry of National Economy, and the Banco Contral de Chile intervene in the approval of this budget, the Consejo Nacional do Comercio Exterior being the organization which attends to the preparation and administration of the running of the budget, which is subject to periodical revisionsn. GATT/CP/62 CHILE (continued)

In order to appreciate the strictness with which the approval of this budget has been obtained it must be taken into account that only importations for a value of US $187,678,799 have been considered, in the circumstances that adequate attention to the country's necessities would demand imports for the value of more or less US $350,000,000. The policy which has been pursued in order to balance the expenses with income has been within the following lines: (a) Prohibiting the importation of luxury goods, and (b) Reducing other expenses to an absolute minimum. In regard to the manner in which certain imports have been reduced, we give details in our reply to Question 4. On the other hand, as a consequence of the lack of dollars which affects most countries, important exports from Chile, which were previously paid for in dollars, are now being paid for totally in sterling, or totally by merchandise, or in partial compensation with part payment in dollars or sterling. All this, necessarily, has imposed the obligation to reajust the foreign trade of the country, which has been effected by: (a) Transferring many purchases which the country made in the dollar area to the sterling area, owing to the fact that there is more sterling available, which has occurred with tin, aluminium, lucern, coffee, cocoa, cotton goods, osnaburgo, wool and cotton cloth, caustic soda, detonators for explosives, pine resin, printing ink, wood pulp for the manufacture of paper and silks, cables, chains, ball bearings, parts for the manufacture of bicycles, press paper, paper and cardboards; and (b) Diverting purchases from those countries with which Chile has a debit balance towards those with which she has a credit balance. In taking these steps, there have been no discriminatory intentions against any country, but the measure has been a consequence of the exigencies imposed by certain exporting countries to be paid in dollars. In fact, in the preparation of the Foreign Currency Budget, the requirements of the country have been divided into two groups, one comprising the purchases effected in the dollar area, that is to say those goods which it is impossible to obtain in other areas, or which in any case must be paid for in this currency (such as fuel oil, and gasoline) and another group which corresponds to the purchases which have to be made in other currencies.This last group is composed of the availabilities resulting from our exports to other countries which pay us in their own currencies in accordance with compensation agreements or payments agreements, and which, therefore, must be expended in the same market, due to the inconvertibility of said currencies into dollars. GATT/CP/62 Page 54 CHILE (Continued) The existence of the Foreign Currency Budget makes it necessary to aadopt a special procedure for the granting of import licences, which can only be conceded to firms which have previously complied with certain special requirements and which firms must be inscribed in the corresponding register. The import licence having been granted, it automatically givos the right to receive the corresponding foreign exchange necessary to pay the value of such imports, III. No modificationss have boon introduced in the rules governing restrictions, but as a consequence of the scarcity of foreign currency, measures of greater strictness have had to be applied, as has already boon stated and as is further shown by the statement drawn up in answer to Quostion IV, IV. In order to reply to Question IV, we give below, by groups, the imports which appear in the Foroign Currency Budget for the years 1949 and 1950: VISIBLE FOREIGNTRADE A) Import of goods according, to ostimato of needs as follows:

Mining products 10,050,000 9,571,000 Water and wood products 2.090,000 1,906,000 Animal products 22,340,000 12,058,000 Agricultural products 30,902,000 28,298,099 Food industry 18,075,9000 1999,35,000 Liquors and beverages 50,000 40,000 Manufactured tobacco 100,000 80,000 Textile industry 14,043,000 12,070,700 Chemical industry 41,574,000 39,086,000 18,882,000 12,054,000 Machinery, equipment, tools 29,704,000 Various manufacture 13,734,00057,940,000 9,909,000 Machinery and equipment for transport 18,160,000 9,447,000 Numerary and fino metals 22,000 20,000 Replacement of goods lost by disaster and whose insurance . compensations are settled in the Banking Market 248,712,000 184,628,799 Authorizations granted for payment during 1950 3,050,000 187,678,799 B) Duly authorized goods imported on consignation in former years 266,658,927 191,278,799 GATT/CP/62 page 55

CHILE (continued)

The above statement, apart from indicating the drastic reductions which the country has had to make in her general airports, also shows that this process of reduction has been especially hard, as it has affected by almost 50% the item "Machinery, Equipment and Tools", and by a further 50% the item !"Machinery and Equipment for Transport". These reductions in imports of capital goods, such as machinery, and also in purchases of means of transportation, signify a hard trial for a country which fights for the betterment of her standard of living by the expansion of an extensive plan for the development of her economy, which has been in force since 1939 through 'the activities of the Corporacion do Fomento de la Produccion, which organization was created by the State and whose principal works are at present in execution and concern the hydro-electric resources of the country, the exploration and exploitation of fuel oil, the creation of the steel industry and of national foundries for minerals, the mechanization of agricultural labours, the expansion of the fishing and timber industries, etc. etc. V. Chile has considered as discriminatory towards her the measures taken by Australia against Chilean Nitrate, a matter which the Contracting Parties will soon have the opportunity of learning in full. GATT/CP/62 page 56 CZECHOSLOVAKIA

I. II. In view of the fact that the Czechoslovak economic & III.system also the functions of its foreign trade materially differ from the system of the other contracting parties to the General Agreement on Tariffs and Trade, we think it essential that the Czechoslovak economy be explained in a general outline as follows :

The basis of all Czechoslovak economy for the years 1949 to 1955 is the first Czechoslovak Economic Five-Year Plan of October 27, 1948, which is a law of the State, According to that plan, the industrial production of Czechoslovakia is to rise by the end of 1953 by 57 per cent above the 1948 level, i.e. from 288 milliard Czechoslovak crowns to 454 milliards, the agricultural and timber-producing industry by 16 per cent, i.e. from 90.5 milliard Czechoslovak crowns to 105 milliards. During the same period the social (i.e. cultural, educational and health, etc.) and individual services are to be raised by 35 per cent per head of the population.

The attainment of the aims set forth by the Czechoslovak economy is to be ensured in addition to the country's own production also by foreign trade which, during the same period, is to be raised by 40 per cent as against its volume in 1948. The fact that Czechoslovakia is actually trying to develop her trade to the maximum extent both on the side of her exports and her imports can best be seen from the summary data of Czechoslovak imports, which amounted (Czechoslovak Crowns, Kes) in 1937 ...... to 10,980,268,000 Kes 1946 ...... to 10,307,850,000" 1947...... to 33,581,000,000 " 1948 ...... to 35,237,000,000" As can be seen from the above, the aims of the Czechoslovak Economic Five-year Plan are in complete accord with the alms set forth in the preamble to the General Agreement on Tariffs and Trade, i.e. the raising of the standard of living, the securing of full employment, the raising of the real income level and the raising of production and the exchange of goods. On the organizatory side, trade was separated from production as from January 1, 1949 and foreign trade was put in charge of 27 Export-Import Companies divided according to the various trade groups of industry (and not according to provinces), pursuant to the Law No.119 of April 28, 1948. GATT/CP/62 page 57

Czechoslovakia (continued)

The Export-Irmport Companies, organized in their greater part as joint-stock companies, have to conduct their business on a commercial basis, i.e., buy and sell as advantageously as possible.

The extent of Czechoslovak imports is governed by the extent of Czechoslovak exports, because the Czechoslovak balance of payments is based on an active balance of trade whilst the sum total of its other component parts is passive.

The procedure in the case of imports is as follows: The Export-Import Companies make known their import requirements and the Czechoslovak National Bank makes known its foreign exchange reserves, inclusive of foreign exchange receipts estimated for a foreseeable time after deduction therefrom of sums required for financial payments. Provided the foreign exchange reserves are sufficient to cover all these requirements (due regard being paid to whether the exchange is convertible or non-convertible), the import is not restricted. When the reserves are insufficient, the Export-Import Companies amongst themselves must agree (the Ministry of Foreign Trade only intervening when no agreement can be reached) as to who is to have priority; priority shall be given to imports necessary for the fulfilment of the Five-Year Vlan and of contractual obligations. Subsequently, the charter companies announce their actual imports merely for checking-up purposes, so that, in the true meaning of the word, the system of import permits has been totally abolished. In view of the circumstances that, as said above, the possibilities of import depend on the exports, it cannot be determined beforehand what extent the imports will have, nor which imports can or cannot be realised.

From the aforesaid general consideration there arise the following answers to the GATT/CP/39 questionnaire :

(1) Note : The balance of payments of the Czechoslovak Republic for the years 1937, 1947 and 1948 was given in Czechoslovakia's reply, but is not included here since it has already been distributed in the Annex to SECRET/CP/7. GATT/CP/62 page 58

Czechoslovakia (continued)

1. Czechoslovakia limits her imports in order to protect her balance of payments pursuant to Art. XII GATT. 2. The system of import restrictionsis apparent from what was said above. 3. As from jan.1, 1949 Czochoslovakia's foreign trade is entrusted to Export-Import Companies, and the import permit procedure was changed to a mere notification of intended imports. GATT/CP/62 Pages 59/60

CZECHOSLOVAKIA (Continued)

IV. The commodities covered by the Tables on the following pagesare subject to no other regulations than the general guiding principles described elsewhere. Formthose date iut is also evident that the imports control does not, in substance, exert any influence on prices and that it cannot be assorted that Czechoslovakia is paying to countries with import and oxchagen restrictions higher prices than on the so-called free market. Thus, for example, Czechoslovaokia is buying at much lower prices from the Soviet Union and other neighbouring countries than from ovorseas,etc. In order to make easier the international comparability of the statistics we have grouped the commodities in accordance with the Brussels nomenclature. The statistics include in thegroups I (livestock), II (foodstuffs and beverages), an.d II (raw and semi-manufactured Materials) all Czechoslovak imports exceeding in 1948 500 millions K6s (10 million $). As to imports of manufactured goods othor than. food industry (Group IV) a.11 iinpiorts exceeding 250 miullions K~s (5 million $) are included. In this way the statistical Data for 25 itells reprosont 60,2>3 of tho COzchoslovak imports in 1937 60.5 in 19+6, 64+.7 in 1947 and 67.3% of total iLrports in 1948. As to tho countries, any country which exported. to Czochoslovaki[. in any of tho years 1937, 1946, 1947 and 1948 at least 5% of the value of any corarod"ity in the groups I - III and' at least 2.5% in the group IV was included. The prices indicated are taken cbiOf. Czechoslovak frontier. V. The development of Czechoslovak foreign trade is considerably influenced by the discriminatory measures resorted to by the United States of America and some othor countries within the framework of the Marshall Plan when export Liconces aro being issued. C ZE C HO S L O VA K IA GATT/CP/62 page 61 PRINCIPAL IMPORTS

'Brussels Commodity 1937 1946 1947 11948 Item i Country of dispatch Quantity Value Mean Price Quantity Value Mean price Quantity Value Mean Price Quantity Value lue Mean price 100 kg 1000 Kcs Kcs 100 kg 1000 Kcs Kcs 100 kg 1000 Kcs Kcs 100 kg 1000Kcs1000 Kcs

8 Meat fresh I i Total 327 554 14.769 4,030 208.243 Yugoslavia 65.919 259.989 3.944 Netherlands .. ~~~~~~~~~~~~~~~~~~~~I I 11.640 50.132 4.307 Poland 308 187 607 4 23 5.750 I 15.098 70.717 4.684 Roumania 250 114 456 31.421 189.961 6.046 Switzerland 26.143 84.798 3.244 Denmark 3.626 14.510 4.002 10.326 45.958 4.451 Hungary 7 7 1,000 1 2 2.000 5.858 22.450 3.832 Argentina 33.460 93.756 2.802 17 Fish, crustacea. s,ellfish Total 240.230 146.890 263.988 695.190 2.212 470,532 1.850 Netherlands 50.121 9.340 186 14.075 29.148 2.071 85.340 179.644 2.105 115.629 150.994 1.306 Poland 403 76 189 2 8 4.000 1.173 3.098 2.641 25.305 47.376. 1.872 Denmark 12.594 35,137 2.790 42.397 105. 583 2.490 ! 28.353 80,708 2.846 Iceland 15.685 43.906 2.799 49.454 140.720 2.845 Norway 60.850 12.238 201 34.715 38.629 1.113 77.034 79.069 1,026 55.107 63.776 1.157 Portugal 19.320 15.529 804 508 3.357 6.608 1.461 6.895 4.720 Sweden 13.261 2.483 184 58.969 80.877 1.372 68.798 134.027 1.948 173.117 289.899 1.675 Turkey 566 2.832 5.004 4.038 28.734 7.116. ! 1.5711.571 8,631 5.494 Germany 43.098 11.735 272 . U.K. 22.533 5.855 260 20 Wheat Total 345.409 37.502 109 425.591 628 2,228,020 1,455,581 Yugoslavia 99.639 9.717 98/ 123.298 90.624 735 76.558 56.270 735 U.S.S.R. 198.738 84.822 427 515.411 314.401 610 1,985.057 1,210.885 610 Canada 336.200 100.170 298 6.245 6.776 1.085 Argentina 160.151 181.643 1.134 Roulania 242.377 27.419 113 U.S.A. ! 38.962 20.553 528 1 GATT/CP/62 page 62 CZECHOSLOVAKIA (continuedued)

Brussels Commodity 1937 1946 __ _ 1947 1948 Item Country of dispatch Quantity Value Mean price Quantity Value Mean price Quantity Value Mean price Quantity Val Value Mean price Kcs Kcs - 100 kg 1000lKcs Kcs 100 kg 1000 Kes Kcs 100 kg 1000 Kcs Kcs 100 kg 1000 ;~~~~~~

Total 590.703 109 100,555 408408 308 ...... 1,053.378 64.581 41.045 1,615.349 652 U.S.S.R. 129.330 16.166 125 100.455 41.016 408 1,497.667 940.384 628 ...... - Canada 117.682 112.994 960 . Austria 6.912 588 85 90 25 278 2 250 Roumania TotalTotal 445.118 46.730 105 Hungary 10 4 400i 2 1 500 Poland 3 1 333 24 Maize

I .. ,. 53.143 21.079 330.339 198.885 602 2,001.148 589 Yugoslavia 166.011 13.383 81 95.878 60.150 627 915 355 549.046 Roumania 512.451 37.515 73 856.029 491.923 575 U.S.S.R. 190.181 110.657 582 1,084.525 629.764 581 Hungary 28.511 2.203 77 21.072 5.252 249 27.068 17. 579 649 375.242 225.775 602 I Brazil i. 17.208 10.497 610 19.925 11.972 601 . . Fruit . 35 Total 1,164.627 429.245 1.283 955.087 1.022 588.463 614.966 Yugoslavia 80.636 14.538 180 102.335 128.279 1.254 144.558 145.135 1.004 141.098 155,709 1.104 Roumania 117.437 16.914 144 8.015 19.206 2.396 22.838 32 489 1.423 4.491 13.031 2.902 91.752 71.364 778 32.960 28.025 850 I Switzerland 55.164 7.514 136 57.208 33.355 .I. 583 I Bulgaria 7.552 1.831 242 9.219 61.177 6.636 4.406 6.862 1.551 53.555 63.106 1.178 Italy 314.783 100. 659 320 121.818 116.607 957 526.370 519.136 986 195.226 202.301 1.036 66.762 12.937 194 11.085 10.306 930 93.162 82.276 883 112.759 93.155 6 U.S.A. 96,027 35.475 369 Spain 108.268 22.969 212 Vegetable oils Total 77.210 25.644 82.870 3.232 192.374 622.635 260.994 876.330 U.K. 5.730 2.896 505 7.011 20. 160 2.878 94.926 303.786 3.200 167.822 548.573 3.269 Netherlands 32.905 13.268 403 890 2.303 2.588 5.842 15.535 2.659 5.130 14.273 2.782 U.S.A. 302 292. 967 32.663 95.535 2.925 9.572 32.385 3.383 Hungary 122 251 2.057 15. 555 61.503 3.954 8.228 30.638 3.724 Portugal 3.104 9.119 2.938 16.559 52.538 3.173 10.549 32.711 3.101 China 22.746 11.180 492 100 567 5.670 482 2.306 4.784 2.144 10.767 5.022 Argentina 11.772 41.816 3.552 14.469 50.351 3.480 15.897 60.061 3.778 Germany 25. 268 10.268 406 GATT/CP/62 CZECHOSLOVAKIA (continued) page 63

IPrussels Commodity 1937 1947 I 1948 __ . IT-- , F i ____~~~~~~~~~~~~~ Item. Country of dispatch Quantay Value Mean price F ;.Quantity Value an price Qu -ntity Value Mean price Quantity ValueValue Mean price , 100 kg 1000 Kcs Kes 100 kg 1000 Kcs Kcs 100 kg 1000 Kcs Kcs 100 kg 1000Kcs1000Kcs Kcs . II ._~~~~~.-i - __ cont. Denmark 23.744 8.491 Dutch India 29.815 11.209 376 Belgian Congo 12.21412.214 4.639 380 brazil 1.714 816 476 1.955 5.890 3.013 2.452 7.475 3.049

Total 416.374 502.487 1,207 35.810 218.368 $.098 199.948 993.498I 5.754 248.851 1.210.398 4.864 U.K. 8.646 20.266 2.344 4.868 53.953 11.08311.083 28.952 166.589 5.754 46.949 194.648 4.146 France 14.909 19.821 1.329 13 323 24.84624.846 2.144 18.808 8.772 13.129 82.680 6.298 50HidesNetherlandsandskinsraw 21.142 12.964 613 2.371 10.613 4.4764.476 2.220 12.802 5.767 3.026 11.435 3.779 U.S.A. 10.0544.1 8.852 2.403 33.892 14.104 14.104 6,963 79.779 11.458 2.638 23.496 8.907 Turkey 11:940 21.926 1.836 1.123 6.991 6.225 11.890 68.576 5.768 6,248 35.467 5.677 India 16.644 26.383 1 .585 2.661 14.653 5.507 12.089 89.843 7.432 10.301 75.514 7.331 Argentina 121.787 118.503 973 10.330 30.273 2.936 43.432 155.967 3.591 70.503 288.783 4.096 Brazil 86.308 65.125 755 9.268 1.987 1.987 54.103 137.921 2.549 29.525 76.705 2.598 Brit.Pos. in South Africa 1.850 1.688 912 11.574 57.367 4.957 27.305 128.763 4.716 . 61 Seeds Total 1,082.317 208.202 7.712 59.943 I 292.710 474.572 514.625 1.500

Poland 2.598 1.009 388 0 . 2 25.970 29.942 1.153 Hungary 8.255 1 .481 179 103 1,200 11.650 11.650 9.009 10.188 1.131 78.563 85.334 1.086 Roumania 216.735 27.321 126 Yugoslavie 1.015 205 202 99.449 115.149 1.158 1.948 2.524 1.296

France 1.721 1.637 951 5.100 27.627 5.417 .41 3.282 10.599 3.230 12.472 53.818 4.315 Netherlands 2.218 1.261 569 279 7.342 26.315 26.315 24.240 56.012 2.311 1 20.876 52.303 2.505 U.S.A. 1.085 1.028 948 413 2.602 6.300 21.137 72.860 3.447 34.172 60.336 1.766 Bulgaria 65.598 3.306 127 59 3.157 53.508 2.222 1.720 774 j 59.385 46.431 782 USSR 0 1 35.037 109.632 3.129

Turkey 6.668 1.941 291 * *1 300 938 3.127 ! 148.683 171.959 1.157 China and Machuria 55.352 9.026 163 India 373.027 84.451 226 17.288 23.399 1.353 Argentina 214.918 38.986 181 I 267 528 1.977 11.533 11.732 7.974 28.349 3.555 4.066 19.554 4.809 U.K. 507 344 679 16.031 23.738 1.481 27.057 38.348 1.417 I GATT/CP/62 II page 64 CZECHOSLOVAKIA (continued)

p -- 1946 I 1947 1948 BBrussels Commodity 1937 _. >~~~~~~~~~~~~~~~~~~~~~.

Item Country of dispatch P Qantity Value Mean price Quantity Value Mean price Quantity Value Meanprice Quantity Value Mean price 100 kg 1000I--- KcsI- Kcs 100 kg 1000 Kcs Kcs 100kg 1000 Kcs Kes 100 kg 1000 Kcs Kcs - ___ __ I- -. -. 62 Rubber I 2.2 1 185.308 628.420 |I Total 183.266 83,526 196,624 _ 422.699 2,389 276.940 45.284 2.996 246. 910 2.316 189.908 2.245 i U.K. 48.118 17.522 365 ! 15.117 106.596 426.400 India 13.352 14,958 1.120 2.033 5.220 2.568 Brit. Malaya 54,065 67.328 1.245 32.439 67.0108 2,683 35.965 83.230 2.314 Dutch India 29.110 37.620 1.292 2.813 6.420 2.282 U.S.S.R 1 48.398 110.915 2.292 5,074 12.548 2.473 18.858 39.982 2.120 ISweden 3.018 553 183 1 8.593 28.665 3,336 249 1.924 7.727 167 2.549 15.264 U.S.A. 167 248 1.485 6.225 5.790 930 1.759 5.742 3.264 112 1.004 8.964 Portugal 4.241 5.290 1.247 Netherland 2.847 1.697 596 15.708 39.426 2.510 10.606 26.124 2.46 64 Tobacco I Total 89.850 255.737 2.846 469,861 2,056.243 97,402 860,451 Yugoslavia 34.546 70.430 2.039 1.494 18.835 12.607 11.937 137.496 11.518 15.739 168.621 10.714 64.086 6.261 Netherlands 6.453 15.224 2.359 12.489] 51.445 4.119 39.464 221.397 1 5.610 i 10.235 Bulgaria 13.446 60.753 4.518 11,964 155.378 12.987 62.509 760.678 1.12.169 15.067 110.648 7.344 Greece 9.091 40.460 4.451 17,408 209.808 .2.052 1 21.603 255.194 11,813 U.S.S.R 4.156 2.433 585 3.256 36.282 11.143 2.952 25,224 3. 12.545 1 5.641 15.630 2.771 Turkey 14.627 54.641 3.736 9.013 104.796 i.1.627 49.483 529.642 10.704 ! 25.741 216.038 8.393 U.K. I 3.739 10.111 2.704 1 9 .. I U.S.A.- 1.604 3.925 2.447 8.331 51.750 6.212 13.185 86.602 6.568 342 9.104 26.620: 70 Iron ores Total I19,451.496 18.90 834.371 1,491.557 71.01 20,352.879 Austria 1,544.547 21.192 13.72 3,167.516 53.056 16.75 271.899 6.145 22.60 32.419 714 22.02 Yugoslavia 2,455.643 42.014 17.11 825.771 51.027 61.79 527.855 29.305 55.54 1, 233.995 71,655 58.07 310.420 57.44 5,132.220 301.487 11,536.838 910,963 78.96 Sweden 8,828.438 174.734 19.79 5,404.527 I.58.74 U.S.S.R 1,874.470 43.227 23.06 4,221.571 241.530 57.21 13,555.967 1,056.575 77.94 7,036.186 402,692 57.23 U.K. 108.606 1.767 16.27 1,148.145 94.648 82,44 394,310 24.036 60.96 258,767 19.394 74.95

I 77 topper I i 254.928 1501 II Total 77.479 548.499 425.198 1,025.044 2.411 76 Germany 23.503 12.371 526 110 172 1.564 II 174 2.290 I Yugoslavia 55,643 45.045 810 2.820 3.702 1.313 7,958 11.850 1.489 14.106 33,128 2.348 21.100 V U.K. 17.909 13.997 782 6.704 11.786 1.758 20.056 40.670 2.028 57.198 2.711 U.S.A. 114.417 101.118 884 4.773 8.649 1.812 111.381 250.845 2,252 229.393 545.106 2.376 GATT/CP/62 CZECHOSLOVAKIA (continued) page 65 1949 Brussels Commodity 19371937 19461946 11947 Item of Quantity Value Quantity Item- Country of dispatch . i Quantity Value. Mean Quantity Value Mean price. Quantity Value Mean price Quantity V ValueMean price, 100 kg 1000 Kcs' Kos 100 kg 1000 Kcs Kos 100 kg 1000 Kos Kos 1000kcs 1000 Kcs

.. 122.778 2.414 Belgium I.- 18,793, 16.159 860 31.225 44.700 1.432 46.443 110.431 2.3782.378 50.868 Canada 24.221 21.261 878 ' 200 408 2.040 36 665. 81.930 2.2352.235 64.747 160.872 2.485 Chile 63.987 55.368 865 I USSR 4.954 6.565 1.325 ! 19.179 25.717 1341I 23.090 52.755 2.285 79 ! Iron and steel .I Total 3,005.161 331.326 110,30 84.278 91.904 .I 1,075.621 394.410 366.70 2,469. 224 623,306 252,40 t ..1 U.K. 226.384 31.840 140, 65 I 6.248 6.740 1079 I 8.499 54.286 6.387 2.937 29. 593 10.076 .I Netherlands 963.076 68.907 71,55 2.636 832 316 37.782 13.673 361,90 60.028 23.777 396,10 4.166 8.417 2.020 4.721 8.868 1.878 U.S A. 786.644 65.954 83,84 i 78 253 3.244 Belgium. 383.700 26.763 600 206 343 243 511 2.103 1.065 2.028 1.904 69,75 i Denmark 208.633 16.322 78,23 .I 58.111 Norway 63.376 11.635 183,59 .II 11.256 8.522 757 66.180 878,10 28.413 47.016 1.655

.. II Austria 125.123 11.107 88,77 14.463 1.702 118 397.062 39.270 98,90 580.999 62.181 107,02 Sweden 94.085 68.212 725,00 .i. 41.650 63.312 1.520 66.915 127.971 1.912 35.891 92.493 2.577 i 103,80 179.947 376,20 USSR 400 25 62,50 I 120.355 12.493 478.364 Germany 27.083 10.521 388,47 3.023 388 1.283 353.243 40.091 217,30 1,228.798 127.128 103,46 i 87 Mineral oils and their I derivatives Total 359.416 2,094.046 698.589 3,182.910 720.174 226 3,847.452 899.801: 234 . Poland 458.292 34.206 74,64 2 Ii Roumania 3,385.236 221.184 65,34 409.844 126.179 308 421.283 96.847 230 787.137 161.167 205 1 11 22.862 16.054 702 U.S.A. 404.646 55.052 136,05 I 13.878 9.442 680 88.693 65.704 741 290.592 17.434 60,00 i Colombia I U.K. 92.099 8.735 i 151.767 92.755 611 175.403 77.956 444 86.615 39.234 453 94,84 i Hungary 3 9 644.256 249.131 387 599.995 100.249 167 559.623 93.429 167 I I 148 73.039 206 Austria 1.038 159 153,18 i 613.033 157.982 258 411.474 60.732 353.891 USSR 7.581 745 98,27 230.918 44.116 191 l 620.842 137.808 222 789.971 166,372 211 Iran I 197.168 34.327 174 887.551 217.793 245 I Mineral Coal, coke and II briquettes Total 14.432.327 2.21.075 I 1,537.925 38.012 24,72 560.415 53,41 22,213.288. 1,104.076 49.70 i Germany 13,020.698 202.089 15,52 i 22.000 757 34,41 4.753 300 63,12 96.124 7.237 75,29 Hungary 813.198 7.384 9,08 I 433.217 11.903 27,48 629.980 16.727 26,55 157,608 3 959 25,12

USSR 116. 041 3.262 28,11 II 191.693 4.418 23,05 I 21,957.909 1,091.101 49,69 Poland 478.178 7.641 15,98 I 890.836 20.532 23.05 99857.258 542.524 55,04

_. . ** o ___ _ _ GATT/CP/62 page 66 CZECHOSLOVAKIA (Continued) Brusses Comnodity | _ 1937 . 1946 1947 ._ 1948 Item Country ofdispatch Quantity Value, Mean price Quantity Value Mean prices Quantity Value Me Value Mean price dispatch 100 kg 1000 Kos Kcs 100 kg 1000 Kcs Kcs 100 kg 1000 Kcs Kcs 100 kg 1000Kcs1000 Kcs 92 Wool Total 285,044 799.106 ).426 578.793 5.103 293.952 293.952 2.112.767 7.221 175.056 8.119 U.K. 38.942 98.617 2.532 47.433 210.035 4.445 146.148146.148 948.163 6.488 65.060 548.741 8.434 France 65.644 256.162 3.902 8.137 72.652 8.929 23.53823.538 337.070 14.320 13.546 227.850 16.829 Belgium 42.223 148.462 3.516 2.882 23.021 7.988 15.489 113.215 7.439 5.293 54.852 10.363 Argentina 14.596 24.074 1.649 5.283 29.934 5.666 7.684 53.226 6,927 11.799 63.213 Uruguay 14.444 33.866 2.345 2.072 11.337 5.472 2.1644. 15.372 7.104 4.379 39.986 9.131 Common wealth of Australia 57.777 125.478 2.172 2.602 10.577 4.065 28.115 155.490 5.530 21.150 167.305 7.910 USSR 18 32 1.778 10.254 23.635 2,305 6.470 43.421 6.711 22.083 115.681 5.238 Sweden 314 297 946 7.728 29.806 3,857 5.780 25.912 1.295 4.839 3,737 Switzerland 1.147 2.658 2.317 6.733 66,340 9.853 11.770 155,577 13.218 3.036 33.214 10.940 U.S.A. 426 587 1.378 .5.789 31,494 5.440 3.352 21.227 6.333 366 5.836 15.945 Union of South Africa 5.735 10.608 1.850 7.864 34.037 4.328 5.388 31.1211 5.776 1.152 7.285 6.3 New Zealand 10.709 21.805 2.036 I 1.760 7.973 4.530 1.104 5.186 4.699 9.033 43.034 4.764 94 Cotton -)- G1 Total 602.057 U.S.A. 443.245 397.653 897 100.892 392.058 3.886 198.588 807.940 90.000 356.792 3.964 Bremen 125.587 119.099 948 USSR 2.557 1,486 581 67 325 201.578 2.994 55.599 185.679 3.340 172.370 699.890 4.060 India 185.839 135.026 727 | 2.329 4.895 2.102 76.879 219.070 2.850 103.207 364.267 3.529 I .' 1, II Egypt 170.835 211.584 1.239 -. .614 105.103 4.270 182.157 803.142 4..420 II 157.987 980.968 6.209 Brazil 50.782 48.586 957 36.292 136.998 3.775 I 90.348 367.457 4.067 U.K. 9.990 4.349 435 2.885 7.489 2.596 36.185 116.563 3.221 13.678 55.369 4.048 104 Chemical products . Total 237.295 452.247 Germany 144.887 95.657 660 7.997 5.052 632 3.070 11.013 3.589 65.663 96.119 1.464 Austria 29.438 9.936 338 238.001 67.572 284 189.645 79.725 420 166.590 88.335 530 Yugoslavia 40.175 10.126 252 7.643 14,804 1.937 10.500 1.356 42.109 30.941 735 USA 62.481 19.086 305 10.705 14.998 1.401 83.991 163.982 1.952 48.587 93.417 1.929 France 13.750 15.773 1.147 2.107 8.800 4.177 37.931 15.662 1.202 65.258 51.991 797 Argentina 117.817 30.850 262 19.363 16.578 856 5.712 6.225 1.107 62.355 1.228 U.K. 7.562 8.910 1.178 37.590 81.536 2.169 44.329 130.875 3.404 61.745 210.782 3.414 U.S.S.R. 18 41 2.278 11.863 8.922 752 31.015 134.676 .4.342 176.993 98.141 554 Sweden 2.427 1.044 430 28.238 44.894 1.590 42.842 92.278 35.212 82.227 2.335 Switzerland 1.971 7.341 3.724 35.495 96.900 2.730 60.459 228.111 3.773 49.829 204.947 4.113 cont. CZECHOSLOVAKIA (continued) GATT/CP/62 page 67

- Brussels CoMmodity 1937 .-.,~~~~~ U ~~II 1946 1947 1948--- Country of dispatch Quantity Value Mean price Quantity Value Mean priceI Quantity Value Mean price Quantity Value Mean price 100 kg 1000 Kcs Kcs I100 kg 1000 Kcs Kcs 100 kg 1000 Kcs Kcs 100 kg 1000 Kcs Kcs I cont. Belgium 5.265 3.930 746 12.611 10.425 827 14.290 37,411 2.618 46.853 64.081 1.368 Italy 4.422 2.943 666 2.345 4.164 1.776 26.072 44.287 1.699 31.975 31,020 970 Hungary 8.453 3.809 451 963 2.477 2.572 21.144 18.367 869 43.381 50.204 1.157 Netherlands 5.839 5.246 898 11.202 20.826 1.859 21.889 69.349 3.168 39.345 119.162 3.029 Norway 9.872 3.562 361 3.998 5.334 : 1.334 24,559 61.355 2.498 12.687 31.727 2.501 Poland 1.994 356 179 2.685 807 301 1.581 1.169 739 53.565 39.017 728 Roumania 1.443 884 613 5.344 4.292 803 2.712 4.243 1.565 49.768 45,357 911 103 1 Colours. dyes and varnishes Total 29,315 181.977 6,208 171,158 21.265 21,663 20.771 19.423 411.816 21.202 Germany 17.124 122.112 7.131 13 387 29.769 109 3.146 28. 862 France 2.326 8.574 3.686 191 1.485 7.775 647 5.572 8.612 541 9.562 17.675 11 Netherlands 2.249 9.033 4.016 245 1.709 6.976 1.589 26.324 16.566 1.536 29.639 19.296 5.820 24.588 10.403 262.532 25,236 I Switzerland 3.399 28.327 8.334 148.293 25.480 12.384 304.503 U.S.A. 1.853 8.079 4.360 ! 485 6.798 14.016 2.767 57.404 20.746 1.241 39.976 32.213 U.K. 655 2,780 4.244 867 9.721 11.212 2,710 41.204 15.204 2.807 42,397 15.104 Belgium 376 686 1.824 203 714 3.517 744 5.265 7.077 1.861 16.857 9.058

114 Silk yarn 1 Total 236.906 80.226 22.605, 320.065 20,010 20.294 327.419 16,134 Germany 7.306 36.677 5.019 21 295 14.048 140 922 6.586 32 400 12.500 Austria 5.688 33.626 5.912 429 5.406 12. 601 1.103 12,487 11.321 784 6.840 8.724 U.K. 2.768 7.554 2.729 6 499 83.167 104 2.684 25.808 1,563 27.718 17,734 France 3.361 17.3835 5.173 10 1.164 116.400 9 1,042 115.778 12 853 71.083 I Italy 18.904 47.903 2.534 19 2.641 139.000 2.096 43.224 20.622 9.237 148.033 16 026 Netherlands 12.343 34.772 2.817 2.452 31.086 12.678 5.023 86.226 17.166 6.133 98.741 16.367 Switzerland 6.894 31.241 4.532 612 39.089 63,871 6.319 149.941 23.729 945 20.359 21.544 ILi ~ 1 Belgium 3.047 9.486 3.113 1.116 22.051 19.759 1,165 19.322 16,585 Japan 1.751 15.301 8.738 1.612 149 Wares of ironand steel Tot al 176.688 2.533 248.038 5.263 43.477 547,936 706.481 Germany 27.704 81.132 2.929 110 3,771 34.281 1,530 48,071 31.419 5.873 57,586 9,805 Austria 14.202 18.844 1.327 11.754 6.316 4,146 314,534 8.329 36.652 160,144 4.369 U.K. 5.799 17.274 2.979 480 12.541 26,127 2.253 32.860 14.585 2.439 33,073 13.560 Sweden 13.193 35.380 2.682 22.280 178.868 8,028 20,727 161.444 7.789 18.420 151.511 8.225 count. GATT/CP/62 CZECHOSLOVAKIA(continued) page 68

--- - I Commodity 1937 1946 1947 .1948 .. _ _ _ .. . Brussels; , _ Item Country of dispatch Quantity Value Mean Pricc__. Quantity Value Mean price Quantity Value price Quantity Value . Mean . . 100 kg 1000 Kcs Kcs 100 kg 1000 Kcs . _ 1-Q.EJ 1000 Kcs K6s 100 kg 1000 Kcs I-.. i * .. I4 cont. U.S.A. 2,803 4.854 1,732 ..I 20.179 6.547 324 I 3.489 97.278 39.083 3.472 72.271 Switzerland 1.627 8.223 5.054 1.924 31,245 16.240 5.331 93.809 17,597 3.748 76.160 20.320 Italy 583 2.497 4.283 6 54 9.000 2.125 35. 493 16, 703 3.024 71.149 23. 5.28 I Hungary 76 77 1.013 . 5 118 23.600 2.226 7.525 3.381 523 4.409 8.430 Poland 131 699 5.336 19 71. 3.737 4.479 5.324 1.169

160 . Total 212.504 L 9.414 19.380 504.155 23.852 621.444 26,054 Germany 11.193 89.591 8..0048 2$9 289 2.207 7.617 243 5.438 22;379 385 8.577 22.278 Austria 2.149 16.098 7.491 187 3 711 19.845 572 7,068 12.357 504 14.189 28.153 Hungary 831 10.415 12.533 142 221 10.979 270 20.954 77.6 I 3.765 26.514 49.679 II U. K. 921 11.679 12,681 2.105. 31.040 14.746 66.362 21.808 2.769 76.233 27.531 .'. 3.043 I Netherlands 2.507 22.181 8.848. 832 33.972 40.832 2.158 107.307 49.725 2.470 127.250 51.518 Switzerland 31.340 6.473I 1.926 55.260 28.692 140.332 31.401 5.124 136,635 26.666 I 4.842 4,469 Sweden 1.338 7.777 5.812 409 9.277 22.682 2.530 35.372 13,981 1.685 46.011 27.306 U.S.A. 1.145 9.700 8.472 2.942 14.784 5,025 1.604 30.207 18.832 806 23.927 29.686 Belgium. 572 14.927 5.171 15.670 1.021 20.249 19.833 4.558 51.298 11.254 I 330 Italy 13 6,846 47 26.977 1.791 48.742 27.215 3.261 73.638 22.581 II 89 87 2.3 Denmark 53 13.250 8 367 45.875 849 5.238 6.170 126 6.898 54.746 USSR 0 1 159 447 2. 811. 773 3.520 4.554

162 1Machine .. Total 22.085 -~. .1.. 6.27L8 I 41.900 6.619 1 Germany 33.094 78.628 2.376 86 223 2.593 270 545 2.019 9 1.256 8.191 6.521 Austria 5.329 6.844 1.284 2 6 3,000 152 1.366 8.987 295 2.750 9.3 U.K. 1.771 4.441 2.508 7.711 35.854 4.6504.650 17.550 83.153 4.738 Switzorland 1.782 9.585 5.379 1.274 20.218 15.870 4,526 62.324 13.7713.770 4.982 71.133 1.428 U.S.A. 8.139 28.434 3.494 70 1.360 19.429 6.304 30, 596 4.853 3.368 35.883 10.654 i I Sweden 1.099 2.446 2.226 8 131 16.375 500 4.907 9.819.814 810 11.171 13.791 Belgium 103 103 1.049 15. 51 3.400 277 1.720 6,2046.209 1.133 5.761 5.085

Franco 514 1.369 2.663 3, 33.00010 2.054 15.391 I 99 7.493 Canada i 9.252 32.820 3.547 I I I CZECHOSLOVAKIA(continued) GATT/CP/62 pages 69/70

Brussels Commodity 1937 1946 1947 1948 ' Item Country of dispatch Quantity Value Mean price Quantity Value Mean price Quantity Value Mean price Quantity Value Mean price 'I 100 kg 1000 Kcs Kcs 100 kg 1000 Kcs Kcs 100 kg 1000 Kcs Kos u_100 kg 1000 Kos Kcs i 167 Other machines. apparatus and detached Parts 72,269 239.446 111,589 11,692 26.880 425.822 15,842 712,084 Germany 47.802 135.916 2.843 654 5.237 8.008 496 12.089 24.373 7.670 67.114 8.750 Austria 4, 585 11.516 2.512 397 2.441 6.149 2.953 16.503 5.589 5,797 32.817 5.663 8.216 U.K. i' 3.525 16.457 4.669 221 4.051 18.330 3.729 61,463 16.482 92.044 11.203 France 2.042; 11.841 5.799 906 3.993 4.407 1.692 38.791 22.926 2,391 34.375 14.377 Switzerland 2.008 9.930 4.945 4,216 54.461 12.918 7.044 123.424 17.522 11.586 162.258 14,005 U.S.A. 6.987 37.663 5,390 181 2,676 14.785 2.549 64.370 25.253 16.877 169.643 10,052 U.S.S.R !i 39 64 1,641 909 6.015 6.617 502 11.133 22,177 3.750 6,760 1,803 Sweden 1.527 6,503 4.259 1.200 16.513 13,760 3.180 46,951 14,764 3.030 49.791 16.433 Belgium 1.038 1.278 1.231 212 2.255 10.637 1,620 15.330 9.463 788 7.932 10.066 GATT/CP/62 page 71 DENMARK I. At present Denmark maintains restrictions on part of her imports with a view to maintaining equlibrium in the balance of payments. The value of imports subject to quantitative restrictions will appear from the following survey where the import figures from the calendar year of 1948 have been broken down by the various forms of existing regulations: Unrestricted imports from all countries and currency-areas about 30 million kr, Regional freelist giving access to free imports fror all countries participating in the OEEC; except Belgium, Western Germany, Switzerland and Italy 660 " Contralised imports' of grain and feeding stuffs" 80 Imports subject to quantitative restrictions " 2383 U Total imports in 1948 3153 million kr.

II. i) An estimate for each calendar year is prepared of the total currency earnings broken down by currency aroas. The estimate is based on expected exports and income from the invisible items of the balance of payments. This estimate is used for another estimate of currency oxpendi- tures on imports, freights and other _.invisible transactions. The total volume of imports, is adapted to the expected currency availabilities and the quantitatively restricted part of imports is curtailed to the extent by which total currency earnings arc expected to. fall short of co;iploto satisfaction of iLiport needs and othor necessary currency expenditures. Under tho principles -doptod for this curtailment, the(r.7w t ls 2nd sCLAi-ranufactlros needod for production of c3xport corwioditios .arc givon proforonce to th;e various manufactures and supplies intended for the home market which. is` satisfied according to the importance of reconstruction and consumption. The amnual import plan is drawn- up with a vi..w to establish. ing a proportion between imports of manufactured conslumcx goods) raw materials, somi-banu'facturQs and investment goods thhat will ensure the nbcasscary competition for Danish product on. The import estimate of currency earnings and expenditures for the calendar year in question is revised during the year to the extent necessitated by actual deovelopments in the assumptions on which the estimate was prepared..' GATT/CP/62 page 72 DENMARK (continued) (ii) The procedure adopted for imports under the estimate for the calendar year is as follows: A. Imports not subject to quantitative restrictiOns: such imports may be made either under the regular freelistor the regional freelist, Imports ofcommeditions included in these free lists require no licences, Fcr imports under the regular free list, the importer is free to decide on the country where he wants to buy such goods. irrespective of their origin and of the currency in which payment is to be made. Unrestricted imports of goods on the regional free list may take place only from certain countries and currency areas - see notes to question 3. B. Imports subject to quantitative restrictions: importation of goods subject to quantitative restrictions requires import licences which at the same tine make the necessary foreign exchange available for the importer to pay for the approved imports, including freight, if any. The practice adopted for issuance of liconcos is: 109 Licencos issued under bilateral agreements. The scope of such licensing is determined bo the trade agreements concluded with the individual countries, generally periods of 12 months. 20, Periodical licensing: licences for imports from Ceg. the sterling area are issued within the limits of the annual estimated total imports and their distribution over currency areas. This category also includes licences for imports financed under the Europoan Recovery Program. 30 Curreat-liconsing for imports of goods from countries with which no trade agreements etc. arc concluded: this procedure applies to e~g. imports from the dolla,.r area which are not financed under the Europe.an Recovery Program. (iii) In regard to that part of imports which is affected undor special import quotas provided for by bilateral trade or which special import figures have beon provided in other ways, licenses aro allocated among importer aftor' negotiation with interested business organizations. The bdsic principles for the issuance of import licencds for the individual countries and currency areas are made known by circulars sent to the individual importers by the licensing authorities. Such notifications are circulated wherever trade agreements are concluded or any general decision is made on the planning of imports. (iv) Licences are issued to individual importers according to the following basic principles: General a location of import licences. Import licences are allocated to the importers in accordance with a general, previously established plan. This licensing principle is generally adopted for imports of ordinary raw materials and consumer goods, For some commodity -roups, the licenses are divided among industrial enterprises and commercial enterprises and a plan is established for allocations among each category, GATT/CP/62Page 73 DENMARK(Continued) Licences are generally allocated according to a plan worked out in consultation with tho interested trade organisations. The plan is prepared on the basis of the firms-' previous iimports, generally during a prewar year and one or two postwar years. in certain commodity groups, notably in the case of licences issued to industrial enterprises, licences are issued in proportion to previous consumption or turnover of imported goods. In commodity groups where consumption is rationoed, the allocation of import licences is based mainly on the number of rationing coupons surrendered by consumers to the importer in question, through the domestic trade. Finally, there are certain fields where imports are handled by a central purchasing agency in which cases tho imports are allocated in the subsequent stages according to the previous turnover of the firms concerned.

Under this system of allocation, individual licences are issued' to importers on applications. Thus, allocation does not take place according to any general plan. This principle is adopted chiefly for special comnodities for particular purposes such as machinery, plants, special seLm- manufacturos etc0 This practice is also used for commodities importeC from currency areas where imports availabilities are so scarce that coach application must be considered on its own Lmorits0 To obtain a licence, an applicant must generally have had previous oxpereonce in import activit-es. For certain wrnmoditi.s1 an application for import licence raust be accom-)anied by ovidlonce of availabilities Ulth details on the country of purchase, description, price, purpose and quality of the goods to be imported0 In fields whero it is believed possible to satisfy import needs, licences are issued unCor froor conditions, for instance by making liconces available to a wider circle without evidence of availabilities, Towkx,1)oQrLLQ 10 per cent of planned imports in the individual coMi:"odLity groups are generally earmarked for special purposon or for now importers in order to unable now inIjorters to establish thonsolvos in the import business or to make adjustments in the existing plans for allocation. Such prospoctiva now importers must be approved in order to become eligible for allocation of import licences, A now importer must submit an application which is considered in the light of the information available on the nature of the business in question, the training and education of the applicant and tho capital at his coLumnd.

TIL9n9,fer of~-') .(.' When licences are allocated according to an established plan some importers may be granted very small licences especially in cases whore import availabilities are very limited. In such cases the impor- -r mak find it inexpodient to utilize such small import licrnces, and a minimum amount for licenses has therefore been fixed In cases whore the minimum amounts are also too small to enable the individual importer to effect direct imports. he may purchase the commodity through another larger importer and transfer his licence to the importing firm. GATT/CP/62 Page 74 DENMARK (Continued) III. Since January 1st, 1948; approciable relaxations have boon madein the Danish import regulations. it has been possible to extend the scope of licences in commodity groups where quantitative restrictions are still in force to safeguard the balance of payments.Free lists have also been introduced withthe result that the scope of quantitative controls on imports have been considerably reduced. The free lists which have boon put into operation are described.. in greater detail below. The free list proper On February 4th, 1949 a number of commodities wore transferred to thefreelist.Goods comprised by this list lay be imported freely(without licences)from all countries and currency areas, and the importer is free to decide the currency 4Ln which paymcnt is to b ecffectot1 Irmports undor this list ro;epr-sont about 42 million kronci a year (osti:ate for 1950)e R9;o r1a floe list In Pursua-ica of tho r.isolution caopteb-d y the 0;ni station for Elurco,)(aa 11rconorJ.c; Cooperation (OEeE.C.) on Noveiuber 2nd, 1949, the l2boralisat1.:Lon of tradeo botwoen the p)Larticij)ating coun.Criosq Donr.qark has introduced a rogienai free list as frcl Decib~r^ 15th, 3 9L,9. Tho goods included in this free list .1ay bo imported freely withoutt liconco) from the c~oun-ries iciip .. in the O .E Ec C with thbc co-^Cption of Bolztum, Wistern G)rma'"ny0 Switzerland and Italy, Payments relations with tho latter countries haveJ a'.1o..C it i:-:iossiblo to include Jthcsc countries in the arr>arcgOmont at the present time, Imports uncde the regional frco list .nabybo ffuctctl without import licence;, provided that. the -uoocs have heorn purchased in a country or currency areva comprised by the regional fr-oce list,7 J). the country of crigin is itlontical with the country of purchase or belongs to tho S-arie currency area as the 1 c Stero g. the ,Soodls aro pai-cd undcr the general paymentsag.fYrCeemearint conclutdoe'd between Denmark and tho country of purchase (the currelicy area to which -t;ho country of purchase belongs). In regard to the, conditions mentioned uandrca bn it should be noted that in cases where the country of origin of imported articles is not identical with the country of purchase or does not belong to the same currency area as the latter, "free licensing " is generally adopted with the result that import licence is granted to applicants without any restrictions as to the volume of such imports. Imports in 1948 from countries comprised by the regional free list of the commodities transferred to regional import free list represented about 660 million kronor. In 1950, imports of such commodities re estimated a t about million kroner, which. is more. than 20 per cent of total1,100 imports. GATT/CP/62 Page 75 DENMARK(continued)

IV. The following description of the actual rules adopted for allocation of import licenses in a number of significant commodity groups, will illustrate the principles described in the answers to.Questions 2 and 3. This survey comprises the following imports: 1948 imports millionsofkroner I. Coffee 22.6 2: Cocoa beans 10.7 Cotton 32.6 Piece goods 111.9 i.. Timber 133.4 6. Coal 359.0 7. Sanitary building articles 3. 9 8. Private cars 17.2 9. Mineral oil products 199.5 10. Machinery and apparatus 164.8 11. Instratents 11.2 12. Electrical machinery Total 1,082. 7

For the commodities listed under - 9 licenses are issued according to the general plan for allocation, and for the commodities under 10 - 12 according to individual applications' Imports of these goods represented about 34 per cent of total imports in 1948 (about 3,150 million kroner). In regard to the individual commodities the following details should be noted: Coffee Imports of coffee in 1938 and 1918, broken down by countries,will appear from the following survey: 1938 1948

U.K. and other sterling area 2.3 U.S.A. Other' dollar. area 12.5 22.6 Countries with which Denmark has concluded bilateral trade agreements 7.0 Other countries 0.1 Total 21.9 22. 6

Consumption is rationed. Coffee imports are handled by an association of coffee merchants which makes purchases on behalf of the whole trade-, The domestic allocation is based on the importing firms turnover in the year 1948-49. Firms entitled to coffee import licenses are the prewar, importers, the firms- which cleared coffee through bonded warehouses before the war: Possibilities for adaptation of the established allocation plan have been provided by reserving part of the imports (generally 25 per cent) for a common pool from which firms entitled to import licenses may receive extra allocations in addition to their regular quotas. Such allocations are based on the numbers of rationing coupons surrendered, but only when the firmr in question has sold 50 per cent of its regular allocation. Under this arrangement a firm may replenish its inventories oace. a. week by a quantity equal to 10 per cent of the regular allocation, until the pool has been exhasted. GATT/CP/62 Page76 DENMARK (continued) Imports have been shifted from the prewar supply areas by- cause the coffee is not available today in the markets (apart from Brazil) from which imports were made before the war.

Imports of cocoa beans in 1938 and 1948 broken down by countries, will appear from the following survey: 1938 1948 million ofkroner U.K. and other sterling area 2:5 7:5 U.S.A. _ I Other dollar area 0.4 0.2 Countries with which Denmark has concluded bilateral trade agreements 0.3 3.0 Other countries Total 3.4 10.7 Consumption is rationed, and imports of cocoa beans are made by a joint purchasing agency established by the chocolate manufacturers. The imports are allocated among the manufacturers on the basis of rationing coupons received by the manufacturers from retailers and wholesalers. Production of chocolate for export entitles firms which submit evidence of completed exports to purchase from the pool a quantity of cocoa beans equivalent to that consumed in the production of such exports, in addition to their normal allocation. For currency considerations, it is endeavoured to pay for imports with sterling or other soft currencies, to the greatest possible extent.

Cotton imports in 1938 and 1948, broken down by countries will appear from the following survey:

U.K. and other sterling area 1.7 3 . 7 U.S A. 8.5 22.3 Other dollar area Countries with which Denmark has cons- eluded bilateral trade agreements 1.3 0.2 Other countries 0.3 1.0 Total Cotton imports for spinning purposes are made jointly by the spinning mills which distribute the imports among themselves on the basisofOruCf ' consumptionandprosent capacity. This cx). 'ci t has boon transforr~Ad fro the rorionial free 'lst but :vnst of the imports co:-o fro;i t UiUnitd Stitos andd ;r-:zil be- causc cotton is not available from other sources of supply.

Imports of piece goods in. 1938 and 1948, broken down by countries, will appear from the following survey: 1938 1948 U.K; and other sterling area UeS.AS Other dollar area Countries with which Denmark has concluded bilateral trade agreements 35.8 81.1 Other countries 0.2 3.3 Total DENMARK GATT/CP/62 (continuede) Page 77 Import licenses forpiece goods are issued according to the general allocation plan which in the individual importers'own option is based either on the firms imports in 1938 or in a postwar period to be determined according to certain rules. The scope of licenses issued on the United Kingdom are fixed in conjunction with the preparation of the annual estimate for- currency earnings and expenditures. Imports from the United King- dom were particularly small in 1948 because there was a temporary interruption in the trade between the United Kingdom and Denmark in the first months of 1948, The scope of licenses issued for imports. from other countries is determined by. bilateral trade agreements. Imports payable in dollars will not 'normally be permitted.

Timber imports in 1938 and 1948, broken down by countries1 will apper-r from the following survey:

millionsof kroner U.K. and other sterling area U.S.A. 0.9 1.3 Other dollar area Countries with which Denmark has con- 0.1 cluded. bilateral trade agreements 40.0 94.5 Other countries 2.1 37.5 Total 43.2 133.4 Allocation of timber. imports is based on imports invoiced direct to firms in 1939 or on contracts concluded with foreign suppliers between April 1st, 1939, to March 31st, 1940 for goods to be delivered during that year, Concurrent with the establishment of the basis for issuance of import licences, an allocation plan was established for sales in the home market.- The allocation plan was based on the Danish importer's sales of imported timber in 1939 to firms which were not entitled to import licences; Before licenses are allocated, a reserve, normally 10 per ce'ts is earmarked for special purposes, such as shipyards the state railways and for export production. A. small proportion. of imported timber is caused with the result that sales to. consumers are subject to special purchase licenses issued to cover the requirements of exporting firms and other purposes of special importance. Most of the imports are purchased from the Scandinavian countries. The scope of such imports is fixed by bilateral trade agreements.

Coal imports in 1938 and 1948 broken down by countries, will appear from the following survey: : 1938 1948 millions of kroner U.K. and other sterling area U.S.A. 108.9 10.2 Other dollar area Countries with which Denmark has con-. eluded bilateral trade agreements 41.8 259.4 Other countries Total 150.7 359.0 (continued)

Consumption is rationed. Coal imports are distributed by a special committee in order to ensure that the needs of different regions are met. The needs are estimated according to rationing coupons surrendered from the consumers and submitted by the .importers.- In regard to coke imports the established allocation plan has, also been abandoned in an effort to adapt the allocations to the actual marketing possibilities of the importers concerned Future allocations will be based on rationing coupons surrendered. by the consumers to the importers and on the volume of inventories. The distribution of imports over. the countries of supply depends on availabilities and on the allocations granted to Denmark by the Coal Committee under the ECE, Sanitary building ariles Imports of sanitary building articles in 1938 and 1948, broken down by countries, will appear from the following survey: 1938 1948 millions of kroner U.K. and other sterling area 1.1 1 :6 U.S.A.- Other dollar area Countries with which Denmark has concluded bilateral trade agreements 0.1 2.3 Other countries - Total . . 1.2 3.9 Licenc'es for imports of sanitary building articles are issued on the basis of a general allocation plan based on imports in 1939, 1945. and 1946- The distribution of imports over countries is determined by bilateral trade agreements with the individual suppliers;

Imports of private cars in"1938 and 1948, broken down by countries will appear from the following survey: 1938 1948 U.K. and other sterling area. 11.1 5, U.S.A. 17,3 2 8 Other dollar area Countries with Which Denmark has concluded bilateral trade agreements 13.4 8.;9 Other countries 0.2 Total 41.8 17. 2 Imports of private cars are allocated on the basis of the existing domestic allocation scheme introduced in 1946, under which a permit is required for purchase of a private car, The individual importers' shares of imports depend on the number of purchase permits received from consumers. Mineral oilproducts imports of mineral oil products in 1938 and 1948, broken down by countries will appear from the following survey: GATT/CP/62 Page 79 (continued) 1938 1948 millions ofkroner U.K. and other sterling area 62,2 77,2 U.S.A. 6.9 119.1 Other 'dollar area Countries with which Denmark hassocon- cluded bilateral trade agreements 1.7 33.2

Other countries - Total 71.6 199.5 Consumption 's.rationed. Imports have been transferred to the regional free list and are mainly handled by the Danish affiliated companies of British and American oil companies.

Machinery ments and electricalmachinery Imports in 1938 and 1948 broken down by countries' will appear from the following. survey: Machinery and I Electrical apparatus Instruments machinery 1938, millionsof kroner U.K. and other sterling area 7.4 73,4 0.6 5.3 U. S.A. 1.1 32.4 0.1 0.8 0.1 2.2 Other dollar area - 0.8 0.1 Countries with which Den- mark has concluded bila-, teral trade agreements 22,7 57,7 3.2 5,2 6.4. 8.3 Other countries _ __ Total 31.5 164.8 3,9 11.2 7.9 15.9 A_ Licenses for imports within the above mentioned commodity groups are issued under the individual applications system. The applications are considered in the light of the following general principles:. a. The applicant must generally be an importer approved in the particular commodity field or an approved newimporter (see above). b. Licences for imports payable in dollars or other hard currencies are limited, because of the dollar shortage prevailing in Denmark. Licenses will not normally be granted if the goods in question are obtainable from soft-currency areas, c. Licences for imports from countries with which Denmark has concluded bilateral trade agreements are issued within the scope of the quota provided for by the agree., meant in question. Applications for licenses are granted within the volume of the quota in question.. If applications exceed the quota, licenses will be limited in each individual case by consideration of the necessity of the requested imports to the domestic supply. GATT/CP/62 page 80 DENMARK (Continued)

V. . The Danish import restrictions have to some extent been UtiliZed to promote exports by reserving scarce raw materials and means of-production for exporting industries,, Liberalization by other countries of quantitative restrictions on their foreign trade. will hardly have any short-term effects on Denmark's exports. By and large, Denmarkfs export capacity is being fully utilized and the volume of exports is not limited by marketing difficulties to any appreciable extent. About 70 Der cent of Denmark's exports consist of processed animal food notably butter bacon and eggs. The production of these commodities and the effect on the volume of exports is chiefly dependent on availabilities of the raw materials needed for this Droduction (grain and oilcakes). So far Denrmark has found outlets for these exports to the full extent of availabilities. Danish exports of certain agricultural products and manufactured articles may, however, be increased to a certain extent, if marketing possibilities were not limited by quantitative restrictions in other countries. This is the case of certain secondary agricultural products such as casings .offals, casein and the like, and also a. number .of more highly .finished industrial articles. Marketing possibilities are also limited for fresh fish in certain countries which apply quantitative restrictio s to. fresh fish. GATT/CP/62 Page 81 FINLAND I. According to regulations which entered into force in Finland in autumn 1939, no goods are allowed to be imported into Finland without the permission of a special Government office called the Board of Licences. The said Board was created to control the country's export and import trade a measure which was considered necessary to safeguard the balance of payments, ide. for reasons mentioned in Article XII in the General Agreement. During the war and some years thereafter the importation of certain essential goods in short supply, for instance, grain, meat, sugar, edible and industrial fats and fertilizers, was concentrated for practical reasons in the hands of the Ministry of Supply. The work of this Ministry having been terminated as from the beginning of the year 1950 the iraporta- tion of grain, fertilizers and sugar has been confided,until further notice, to state controlled or private enterprises. The exchange controls, which are used as a supplement to the import restrictions in Finland are described in the answer to question 2 below. II, Finland has concluded bilateral commercial agreements with nearly all of its most important foreign trading partners. These agreements are usually based on balance between import and export lists containing quotas for different goods to be exchanged. The Board of Licences mentioned above issues import licences against the said quotas; When considering the applications received the Board pays due attention not only to the respective quota in the agreement but also to the prevailing balance of payments with the country from which the commodity will be imported. Thus, in case the debt on the accounts exceeds the so-called ceiling provided for in the payment agreement between both countries, import licences may be provisionally refused also for goods covered by quotas in the commercial agreement. On the other if the balance of payments is favourable the Boardhand,is often prepared to overdraw quotas or approve import licences for goods which are not specifically included in the commercial agreement. In that way the quotas do not create absolute limits for the foreign trade and the system allows in practice an expansion of trade within the, frame of the payment possibilities. The Board of Licences also take due notice of the price of goods to be imported. Thus if it appears that the price of the imported product is considerably higher than the price of the same product if imported from some other source the import licence may be refused. Regarding the quotas, such as "iron and metal products"' "machinery and apparatus" "pharmaceutical preparations" and "miscellaneous"' which allow a rather free interpretation, the Board of Licenees is considered to have the right to decide what kind of goods classified under these quotas are allowed to be imported.. GATT/CP/62 Page 82 FINLAND (Continued) The members of the Board of Licences are appointed by the Government among experts in the field of foreign trade. When considering import licence applications the Board often request expert advice from federations and associations operating in the import and export trade. The exchange controls which are used as a supplement to the above import restrictions and which lay any Finnish citizen under the obligation to declare and to transfer his foreign assets to the Bank of Finland, are not directed to intensify the effects of the import restrictions described above. The exchange controls merely intend to provide the Bank of Finland with all foreign currency available in order that the importation of essential goods should be safeguarded and the currency used in the best possible way. With reference to the countries with which Finland has not concluded bilateral commercial agreements the import restrictions are mainly the same as described above. When considering applications for import licences the Board of Licenses pays attention to the availability of the currency in question and the importance, price, quality etc. of the commodities concerned. Due to the fact that bilateral commercial agreements have been concluded with nearly all foreign trading partners it is difficult9 for technical reasons to avoid deviations from the rule of non-discrimination provided for in Article XIII of the General Agreement. When negotiating a bilateral agreement with a country it is mostly impossible to grant the latter such a share in imports of a certain commodity as would be proportional to the share which the said country used to have in imports of that commodity during a given prewar basic period. On the other hands while the commercial agreements, in question always are the result of bilateral negotiations, it seems natural that the lists of commodities to be exchanged thereunder should contain as many as possible of the goods exchanged also under normal conditions. The deviations from the rule on non-discrimination are considered to fall under Article XIV 1 (b) and (c). III. Since January 1, 1948, no other legislative changes in the import restrictions have occurred than the abolition of the Ministry of Supply mentioned Xn the answer to question 1. Owing to larger income from exports the importation of various goods has been facilitated and thereby the discriminatory effects of the import restrictions have been alleviated, GATT/CP/62 page 83 (continued) IV. Annexed to this reply are statistics on the imports of the following commodities in 1939 and 1949: Fresh apples, coffee (unroasted) wheat, coconut oil, sugar oil foods tobacco (unmanufactured), coal, sodium sulphade, phosphateus rubber, artificial silk, cotton (raw), wool (raw) machine felts, cast-iron, machinery (other than electrical), auto- bobiles and chassis. The importationof these commodities represent over 30% of tho Finnish import trade, When comparing these trade figures it should at first be kept in mind that the Finnish mark has been devalued many times during and after the war, The figures shown in the column for the year 1939 trade should therefore be multiplied by at least 9 in order to obtain a correct picture of the situation. It will be seen that the main sources of supply have in some cases changed since 1939. This is due to payment difficulties especially with hard currency countries and applies for instance to imports of apples wheat, sugar and cotton, where the importation from the dollar area has proportionally diminished although the prices of the goods from those countries often are lower, In these cases the transfer of imports to now sources of supply has been necessary in order to safeguard the importation of other important goods, which have to be. paid in dollars as, for instance, 'machines. As a general conclusion it can be said that regarding certain products the existing import restrictions have had sone effects upon the distribution among the sources of supply. As, on the other hand, there has bean a strong demand after the war for other commodities which cannot be obtained but front a few sources, the proportional distribution of the. total of the Finnish import trade among different countries has not changed substantially. Furthermore the discriminatory effects of the import restrictions will gradually diminish if Finland will be able continuously to increase hor exports .to different countries. The proportional ,sharps of the Finnish import trade in 1939 1947 1948 divided between the most important countries trading with Finland are shown below:

Country of 1939 1947 1948

Great Britain 19.14 17,46 25,12 United States 10.07 23,71 12.06 Soviet Union .0.84 11.30 12.46 Germany 21.96 0.04 0.75 Belgium 6.17 7.93 4.93 Sweden 15.88 4.79 4.79 Netherlands 4.02 4,69 5.96 Denmark 3.90 6.42 8.06 GATT/CP/62 Page84 (Continued)

%of the total import trade Country 1939 1947 1948 France . 4.47 Poland 1.55 3.64 6.85 Italy 1.23 0.38 0.52 Norway 3.91 2.15' Czechoslovakia 0.89 0.69 1.02 Brazil 1.64 2. 1.00 Greece 0.43 0.02 0.61 Australia 0.20 0.02 0.07 Turkey 0.12 0.47 0.62 Switzerland 1.55 0.78 1.11 Canada 0,25 0.26 0.33 V. To give an exhaustive answer to this question would meet with considerable difficulties without a rather large and detailed research work, because the marketing of export goods greatly depends on many other conditions as, for instance, on prices and is not only determined by the import restrict-ions imposed by the foreign countries. It is evident, however that the import restrictions in certain countries have hampered and still are hampering Finnish exports. Generally speaking the restrictions make the exportation more difficult as far as the more processed goods are concerned. Thus, for instances exports of papers cardboard and insulating boards of wooden fibres have met with considerable difficulties when on the other hand$ quotas for sawn timbers round wood and wood pulp have been more easily secured. The statistics below show the distribution of the Finnish export trade in 1939,1947 and 1948 between the most important countries trading with Finland.

Country of the total exports 1939 1947 1948 Great Britain 36.23 30.02 28.32 United States 12.76 11.48 9.49 Soviet Union 0.35 12.40 14.67 Germany 16*55 0.12 0.82 Netherlands 6.15 4.54 7.22 Denmark 4.03 7.16 6.36 Sweden 6.27 5.73 France 1..77 3.85 5.60 Belgium-Luxemburg 3.44 5.18 3.81 Poland 2.09 1.97 Italy 1.52 0.54 Norway 1.13 Czechoslovakia 0.12 0.53 Brazil 1.12 Greece 0.69 0.89 Australia 0.20 0.50 0.61 Turkey 0.28 0.35 0.48 Switzerland 0.19 0.92 0.90 Canada 0.11 0.01 0.01 With the exception of the trade with the Soviet Union and Germany which has been influenced by other factors the distribution of the Finnish export trade since 1939does not show great changes which could be explained by measures taken by the Importing countries to restrict their importation. GATT/CP/62 FINLAND (continued) page85 Imports of certain products to Finland in 1939 and 1949

Descripti n of products 1939 and country of origin .in in million marks million marks 1. Fresh apples Belgium Estonia 0,7 Denmark 98,0 Netherlands 32,3 Poland 0,7 U.S.A. 7,7 0,0 Australia 9,0 Chile 0,5 New Zealand 0,9 Other countries 0,1 0,4 2. Coffee, unroasted 192,2 1.039,8 U.S.A. 0,1 0.3 Brazil 123,8 312,6 Aden 2,0 Netherlands East Indies 1,9 0,2 Aressinia 4,4 - Liberia 1,2 Belgian Congo 0,3 9,0 French Somaliland 0.9 - Costa Rica 0,8 Dominican Republic 3,3 Guatemala 12,5 2,5 Haiti 1,8 - Mexiec 2,7 Nicaragua 5,2 Savador 12,9 1,4 Colombia 11,0 711,0 Ecuador 0,6 Venezuela 4,7 2,3 Other countries 2,0 0.5

. US.S.R. 6.3 2.283,9 U,S.A. 10,9 Canada 18,1 Other countries 0,4 0,2 4. Cocoanutoil Denmark 3,9 20,3 Netherlands 0,6 115,7 Sweden 14,8 367,8 U.S.A. 4,6 Ceylon 2,4 Other countries 0,5 0,9 GATT/CP/62 page 86 FINLAND (continued)

Germany (USSR zone) 98,4 Germany (British-U.S,A.zo-one ) ,407 Belgium 1,2 ,6.1 Hungary - 148,7 Italy 5,1 Netherlands 1,5 5,8 2 Poland 9,4. 570,5 Great Britain 82,9 102,7 Sweden 0,0 1,5 Czechoslovakia 13,4 1,992 U.S.S.R. 320,2 U.S.A0 21,8 0,0 Uuatemala ,019 - Cuba 2,1 123,3 Netre-lands East Indies 58,8 - Mexico - ,290 Other countries 0,5 0,5 69 Oil feedy4 Bulgaria 17,6 Denmark 1,1 France 65,5 Hungary 32,7 Sweden 1,90 - British India ,s3 U.S.A. 1,5 rgentina a 4,0 925,5 Other countries 0,6 7Tobacco, rawq 122,8 364,44 Greece 59,6 10),1 Hungary 0,7 1,1 Bulgaria 8,5 13,9 Yugoslavia 2 2 Italy Turkey 26,1 6,91 Rumania 3,5 .4S..SR. 4.7 1 4,7 British India 4,5 Union of South Africa - 5,0 U.S.A. 1,28 100,6 Brazil 1,4 9,9 Cypess - 2,5 Netherlands East Indies 1,7 6,5 Southern Rhodesia ,20 ,93 British Nyassaland 0,1 3 Cuba 0,5 ominicana Republic 0,88 Other countries 0,3 2,0 8. ,476, Germarn (British-4U.S.A.zone) 26,7 8,0 Beglium 3,4 Netherlands 170 Poland 47,4 1 66'92 G~reat Britain 266,4 804,2 Other countries 00,1 0,4 GATT/CP/62 Page 87 FINLAND (Continued)

9. Sodium sulphate Germany (U.S.S.R. zone) 10,7 187,4 Belgium 3,9 0,0 France 0,33,7 Great Britain 7,6 40 8 U.S.S.R. - 8,2 Other countries 1,0 0,0 10. Phosphate fertilizers 66.4962,0 Germany 3,4 - Belgium 13,8 14,8 Denmark 3,1- Netherlands 15,0 92,4 Great Britain 3,4, 39,6 Sweden 2,2 0,8 U.S.S.R. 9,4 132,3 French Morocco 1,4 231,4 Tangiers - 49,5 Tunisia - 401,5 Curacao 6,3 - Gilbert Islands 3,2 _ Nauru 4,2 - Other countries 1,0 0,2 11. Rubber, raw 117,413,5 Norway - 3,5 Great Britain 0,4 5,3 U.S.A. 1,4 5,3 Ceylon - 3,6 British Malaya 6,0 93,7 Netherlands East Indies 3,7 Netherlands Guina 0,20, 2,4 2,3 Other countries 1,8 1,2 12. Artificialsilk 27,8311,3 Germany (British. U.S.A, zone) 5,3 0,0 Belgiurm 2,3 - Denmark 0,0 0,9 France 2,6 92,4 Italy 5,3 31,0 Netherlands 4,4 150,2 Great Britain 2,4 17,4 Switzerland 5,0 19,2 Other counties 0,5 0,2 13 . Cotton, raw 143,81.710,5 Great Britain 1,3- Turkey 145,2 Pakistan - Egypt 10,2 334,1244,2 U.S.A. 113,9 752,2 Brazil 15,5 - Anglo-Egyptian Sudan 1,8- Belgian Congo - 44,5 Kenya - 190,3 Other countries 1,0 0,0 GATT/CP/62 page88 a (continued)

14. Wool,raw 1,996,2 Belgium 21,0 Denmark 1,8 France 2,5 126,1 Netherlands 0,8 Great Britain 34,6 773,6 Sweden 2,9 Union of South Africa 0,9 Argentina 6,0 Australia 12,0 Uruguay 2,r 2,8 New Zealand 1,7 79,6 Other countries 1,2 0,2 15.Machine felts 19,3 Germany (British-U.S. zone) 3,9 0,0 Belgium 0,1 France 1,1 21,6

Netherlands - 1,6 Great Britain 55,7 Sweden 26,4 Switzerland 6,3 Austria 0,9 18,1 Other countries 0,4 0,1 371,3 4 ,542,9 Germany (British-US zone) 92,4 Germany (French zone) 59,1 40,9 Belgium 144,8 961,2 Denmark 1,1 28,8 France 695,9 Hungary 0,3 Norway 0,2 3,6 Netherlands 1 ,8 86,4 Poland 5,8 101,4 Great Britain 37,1 1.451,2 Sweden 37,4 254,1 Czechoslovakia 154,3 U.S.S.R. 16,1 231,7 U,S,A, 46,1 224,2 Austria 184,9 Canada 6,5 Other countries 0,24 0,6

17. Machinery,excluding electrical machinery Germany (USSR zone) 138,0 Germany (British-US zone) 178,6 112,3 Germany (French zone) 5,7 Belgium 6,5 123,1 Denmark 17, 8 669,4 France 335,1 Hungry 0,1 5,2 Italy 70,1 Norway 1,5 Netherlands 2,9 45,3 Poland o,8 45,0 Great Britain 77,4 1. 256,1 Sweden 165,2 1.101,3 GATT/CP/62 Page 89

(Continued)

Switzerland 17,1 162,7 Czechoslovakia 9,0 135,0 U.S.S.R. 0,0 79,9 Austria 2,6 U.S .A. 84,5 1,258,7 Canada 3,2 Other countries 1,0 0,0

Germany (USSR zone) 18.Automobilesandchassis ) 49,7 Germany (British-US zone) Denmark 48,6 France 4,3 143 ,1 Italy Netherlands 2,0- 17,3 Great Britain 4,8 580,7 Sweden 78,0 121,0 Czechoslovakia 0,4 28,8 U.S.S.R. 60,6 U.S.A. 116,8 219,4 Other countries - GATT/CP/62 Page 90

(translation) I. The purpose of the import restrictions imposed by the French Government is to safeguard the balance of payments as provided for in Article XII of the General Agreement. To the extent that (such) restrictions affect State trading they do not differ from those applying to individual importers: both categories of restrictions result from the existence of a trade control system under which the allocation of foreign exchange is subject to the issuance of import licences. In the domain of trade it should be noted that there are no exchange restrictions as distinct from import restrictions, as import licences automatically carry the amount of foreign exchange necessary for the payment of the imports which they authorize. II. Under the present system, no foreign products imported into Franco can be cleared through the customs for consumption purposes unless the import of these products has been previously authorized by an administrative decision. Except in general or particular cases of extremely limits scope such as frontier traffic etc. exceptions to general import prohibitions can be granted only with respect to: a) Commodities originating in countries with which France has no commercial agreement with schedules annexed thereto to the extent of the credits allocated within the general import programs drawn up by the French authorities; b) Commodities originating in countries with which France has entered into commercial agreements with schedules annexed thereto, within the limit of the quotas provided for in such schedules. It should be made clear, however, that even in the latter case, the quotas provided for in any of the agreements may not be fully utilized if the amount of foreign exchange available is not adequate. However, the allocation of the above-mentioned quotas or foreign exchange which is publicized in the French Gazette does not, as a general rule, permit any physical or moral entity to import freely into France the commodities which it is intended to purchase. Indeed, import thereof is subject in both cases to previous issuance of individual import licenses which may not be transferred and are only valid for a specific operation. Furthermore, import licenses cannot in any case be granted unless: a) the applicant is domiciled in France; b) the profession of the applicant involves the use or sale of the commodity which it is intended to import; c) the means of payment envisaged are authorized under the existing exchange regulations. GATT/CP/ 62 page 91 FRANCE (continued)

Lastly, a number of commodities can only be imported by the associations or bodies mentioned in the regulations currently in forces (Joint Agencies, Technical Associntioms, State Offices, etc.). (i) Individual imports for which licences are recuired. Such private enterprises as fulfil the above-mentioned conditions and wish to import commodities for which there is no import monopoly, to the extent of the quotas and foreign exchange allocated, shall, at the date provided for in the notices to importers inserted in the French Gazette, file with the Exchange Control Authorities application for import liconces giving all the necessary details relating to the nature, quantity, value, origin and source of the goods to be imported and the means of payment thereof. Applications relating to the same categories of products are examined either simultaneouslyunder the "appel d'offres" procedure, or as they are being received' Their examination is conducted by the appropriate technical Ministry assisted in some cases by advisory technical committees on which most professional circles are represented. Although it may have to state the reason for its refusal, the Technical Ministry makes the final decision as to the acceptance or rejection cf the application on economic grounds. If the decision made is unfavourable, the applicant may file a new request asking for the reversal of the said decisions (recours gracieux). (ii)Importsby JointAgencies In order to facilitate the application of the economic policy that they have adopted, the French Authorities have entrusted the conduct of operations that consist in grouping or allocating certain categsj.;.s of resources to organs called "Groupements d'Importation et de Repartition" (Joint Import and Allocating Agencies) or "Groupements Nationaux d'Achat" (Joint Purchasing Agencies) placed under the direct supervision of the relevant technical Ministry. As a general rule such bodies enjoy an exclusive monopoly for domestic and foreign purchases. They are therefore the only bodies empowered to obtain the import licenses for the commodities with which they deal. Although a number of these bodies have ceased operations, some have been maintained and continue to function siraultan- cously with state monopolies and nationalized enterprises, Whatever the profession of the importer, any import licence issued, the validity of which is limited, has to be submitted to customs authorities when the commodity is delivered for consumption and to the banking authorities through which the settlement is effected. Furthermore, the latter establishments must have been approved by the Exchange Control Authorities (Office des Changes), It has been reported that, in a number of cases, the procedure requiring a previous authorization in the form of an import licence has been provisionally suspended. Imports of various commodities originating in foreign countries have then been freely authorised subject to the presentation of import certificates within the limits of a specific tonnage or for a given period. GATT/CP/62 page 92 FRANCE(continued)

Thus the system at present in force in France is based on the allocation of bilateral quotas of foreign exchange, within the general purchase programs but does not imply any system of global quotas or of quotas for specific groups of countries. The methods applied are the same, irrespective of the nature of the commodities imported and there is no distinction resulting from their degree of essentiality, The existence of bilateral quotas and of the purchase program results in exceptions to the rule of non-discrimination provided for in Article XII. Such exceptions are authorized by Article XIV (1) (b) under which a contracting party which applies restrictions under Article XII may, in the use of restrictions deviate from the provisions of Article XIII in a manner having equivalent effect to restrictions which that contracting party may, at any time, apply under Article XIV of the Articles of Agreement of the International Monetary Fund. Thus under the provisions of Article XIV the countries participating in OEEC were in a position to alleviate a number of quantitative restrictions within the application of a regional system of payments enabling then to eliminate monetary difficulties with respect to current payments. As regards France, the commodities included in the schedules published in the Official Gazette of 6 October and 27 Decembe: 1949 can now be freely imported when they originate in and are supplied by one or several Members of OEEC or, overseas territories thereof, III. The measures taken by the Members of OEEC within the liberalization of intra-European trade, which affect over 50% of French imports from participating countries, on the basis of the 1948 statistics, have resulted in the elimination of the quotas provided for in the agreements entered into and in the correlative abolition of the import licence system. Such commodities can now be imported into France, subject to an import certificate delivered by the importer, upon receipt of which the necessary foreign exchange is allocated by the Exchange Control Authorities (Office des Changes) while the Customs Administration discharges the import certificate at the time of imports As a result of such provisions, the restrictions affecting an important share of France's trade with OEEC countries have been eliminated, As regards other imports under the regular import system, it should also be mentioned that the amount of foreign exchange available has often facilitated the issuance of import licences. GATT/CP/62 Page 93 (Continued)

Applicationof quantitative restrictionsto

The information contained in the above-mentioned memo- randun applies not only to the metropolitan territory but also to all the overseas territories of the French Union subject to the following: 1. Certain bilateral agreements provide for special quotas for overseas territories whereas other agreements provide for no such specialization. In the latter case, the share allocated to overseas territories results from a domestic decision. 2. The licence system applicable to the metropolitan territory also applies to overseas territories. These licenses are issued by the local offices of the Exchange Control Authorities upon the recommenda- tion of the Governor of the territory and are reserved for importers domiciled or who have elected domicile within the territory concerned. 3. The foreign exchange necessary for the payment of imports is allocated by the Offices of the Exchange Control Authorities within the jurisdication of the "Caisse Centrale de la France d'Outre-mer" The Indo-China Exchange Control Office is a sub-office of the Metropolitan Office which is also represented in Algeria and Tunisia, 4. As a general rule, import licenses are only issued to individual importers as most of the joint import agencies set up during the war have now been liquidated. 5. It Is also reported that the system of imports without transfer of payments is applicable to overseas territories. This enables a number of products not included in the schedules to be imported into those territories by importers who have the necessary foreign assets abroad to effect payments therefore. Such a system constituted therefore an exception to the rule outlined in paragraph 1 of the memorandum, under which the import licence carries an allocation of whatever foreign exchange to the extent necessary for the settlement to be made. GATTCP/62 Page 94 (continued)

IV. It is difficult to assess the incedence of restrictions on the breakdown of imports as between the various countries of origin, A statistical study would require a comparison between the present trade pattern and the pattern prevailing before the institution of exchange control measures that is, the period prior to 1939. However, the magnitude of the changes which have. occurred throughout the world since 1939 considerably impairs the value of such a comparison, But if one examines the origin of the 20 commodities included in the Annex: Annex, are the principal items imported by France and which represent 55% of the 1948 total imports with the corresponding figures for 19389 one can note the following facts: 1) The same pattern of sources was maintained due to the distribution of available primary products throughout the world: thus in 1948 as in 1938 80% of the following commodities were supplied by the usual producers thereof, i.e.: Meat South America Wheat Canada and U.S.A. Sugar The Caribbean Area and South America Rubber Malay and Netherlands Indies Cellulose Pulp The Northern Group of countries Wool Australia the Argentine and the Union of South Africa Cotton U.S.A., Egypt and India Copper the Belgian Congo United Chile,States and Canada. 2) One can also notice a decline in French imports from war- devastated countries. Thus, in 1948, Germany ceased altogether to be a supplier of nitrogen fertilizers and lost its former position as exporter of machine tools to France. The share of Far Eastern Countries in total world supplies of copra has also considerably decreased. 3) The increase in imports from the U.S.A. and the dollar area is particularly noticeable as regards coal supplies, products from the metal industries sheet-iron, wheat, etc. This increase of dollar purchases has been made possible largely on account of credits granted to France within the Furopean Recovery Program. 4) An examination of these statistics also shows less important changes in the import trade pattern which cannot so easily be explained in every case by general factors resulting from specific and sometimes temporary situations. Thus in 1948 the United Kingdom did not contribute to French availabilities in solid mineral fuel and no longer supplies important quantities of sea- fish, whereas on the other hand her deliveries of machine tools and fertilizers were considerably increased. The share of the Northern Countries in total world fish sales increased but their exports of wood and products of the metal industries declined. The Belgian-Luxemburg Economic Union lost its former position as an exporter of products of the metal industries and more particularly of sheet-iron and steely and as a supplier of sea- GATT/CP/62 Page 95

FRANCE (Continued) fish and oil cakes whereas its importance as an importer of machine tools was increased. The above findings show that an examination of import trade in primary commodities casts. little light on the impact of quantitative restrictions on the origin of supplies. One can no doubt conclude that strictly speaking import restrictions have not resulted in a disruption of the trade pattern but that they have caused every country to limit its purchases mainly to the most essential products and that they have incited various governments to achieve the equilibrium of their trade balance through bilateral agreements. An examination of prices obtaining on the market and prices offered by other competitors in each case would probably yield further indications, but it appears that an analysis of this kind cannot be conducted with all.the necessary scope and precision. V. It appears that the most notable consequences of the discriminatory restrictions applied by France and other countries are as follows: 1) The need to increase the number of bilateral agreements so as to maintain the traditional outlet in each country; 2) The necessity, at least at times of short supply, to accept less essential products in order to obtain raw materials or essential commodities; 3) The choice of sources of supply not so much on the basis of current prices as according to the amount of foreign currency available; 4) The limitation of the volume of trade to purchases or sales for which counterpart transactions could be effected with the partners concerned. As a consequence, the expansion of export trade has been hampered, particularly in France, whenever the quotas for French products allocated by the importing countries were smaller than the import capacity of the market concerned. This kind of barrier has been particularly grievous to economic sectors engaged in the manufacture of luxury goods and of products other than essentials, Furthermore, France has sometimes had to import commodities at prices higher than those offered by other sources of supplies, in order to use her available resources of foreign exchange, to facilitate the conclusion or renewal of bilateral agreements, or to supply her partners with adequate amounts of French francs in order to maintain traditional trade channels. GATT/CP/62 page 96 FRANCE (continued) PRINCIPAL IMPORTITEMS BYCOUNTRY OFORIGIN(1938&1948) Percentage share in relation to Value of Countries total import volume. 1948 imports of origin 1938 1942 Meat Argentine 67% 78% 2,296,479 Brazil Poland Uruguay Denmark 8% Fresh U.K. 48% 1,015,675 sea-fish Netherlands 15 Norway 15 25% B.L.E.U. 15 Denmark 33 Iceland 16 Wheat Canada 76% 3% 11,960,854 U.S.A. 10 78 Argentine 6 Australia 14 Copra Philippines 33% 81% 3,850, 584 Netherlands Indies15 8 Malaya 13 Southern Africa - British India 3 Sugar Cuba 44% 55% 11,639,147 Dominican Repub. 30 Brazil 24 Netherlands 11 U.K. 7 Oil cakes B.L.E.U:41% 41% 1,796,532 U.S.A. 27 Argentine Iron Portugal 66% 5o% 1,910,054 pyrites Western Asia 17 25 Greece Norway 4 - Spain 13 Solid Germany 31% 28%- 51,976,668 mineral 30 fuel B.L.E.U. 21 5

U.S.A - 50 Poland 10 Crude oil Iraq 46% 20% 499 651,443 U.S.A. 33 Venezuela 10 21 Colombia 6 Western Asia 24 Arabia 18 Iran 10 Paraffin U.S.A. 77% 99% 29 680, 971 oil U.S.S.R. 20 FRANCE (continued) GATT/CP/62 Percentage share page 97 in relation to Value of Countries total import volume 1948 imports Items 1938 Nitrogen Chile 38% 37% 4,171,473 fertilizers Germany 21 U.S.A. 14 13 U .K. Canada 13 Raw rubber British Malaya 80% 67% 4,492, 201 Netherlands Indies 8 10 Canada 75 U.K. Round wood U.SS.R, 99%. 5,620,907 Finland 25 Germany Celullose Sweden 36% 10, 677282 pulp Finland 28 24 Norway 17 1,5 Canada Germany - 3 U.S.S.R. 3 U.S .A. 9 Raw wool Australia 52% 53% 38 036 250 Argentine 17 16 U. of South Afr. 14 13 Now Zealand 16 Raw cotton U.S.A. 37% 30,979,867 Egypt 16 33 British India 14 17 Brazil 11 11 Hot-rolled B.L.E.U. 58% 11 5 728,471 products of Sweden 11 metal in- 12 77 dustries Sheet iron B. L.E,U. 59% 9% 2,313,396 and steel U.S. A. 20 83 U .K. 5 Raw copper Chili 35% 30 9, 7132 766 B. L.E. U. 30 26 U. S. A. 11 Canada 13 U .K. 5- U.of S.Africa 6 Machine Germany 38% 13% 5,389 776 tools U.S.A: 32 33 U.K. 10 B .L.E.U. - 15 Switzerland 9 25'5 901,796

The total v.m.lue of French imports from foreign countries in 1948 was 464,860,000,000 French francs, GATT/CP/62 Page 98 GREECE Import restrictions have been continually in operation since 1932, except for a short period in 1946 when the 'importation of certain important commoditios was freed with the result that Greece's available exchange was soon exhausted and the restrictions were again put into effect. Notwithstanding the long-sustained restrictions by which the entire import trade of the country was subjected to strict Government control, it should be noted that this control was exercised in compliance with sub-paragraph (c) (i), (ii) and (iii) of Articla XII, paragraph 3 of the General Agreement. Import restrictions and controls were imposed under the 480/47.provisions of Laws 5426/32, 1960/39 and Legislative decree Imports are effected through private trade except for the following items which are subject to state monopoly control: matches, playing cards, cigarette paper, stamped paper, narcotics, quinine, saccharin and kerosene. The following items are imported by the appropriate State services: rice, sugar, evaporated milk, milk powder , wheatseed, wheat, flour, soya flour, nitrogenous and potassium fertilizers, solid fuels, asphalt, copper for making sulphuric copper and some other items required of reconstruction. It was decided that importation of fluid fuels should be effected through private trade except for kerosene to the mainland which is a monopoly item. Edible pulses, coffee beans and codfish are imported by the respective importer's unions. The State monopoly items are imported by the Government for reasons of public health, public order and on financial grounds. The Government imports the other items named above in order to achieve an equitable allocation among consumers and a check on prices as these items constitute essential products of wide consumption and for use in agriculture and are available only in restricted quantities, they are distributed either by coupon or through direct government control. Therefore it is not a question of carrying out a system of indirect exchange restrictions inasmuch as this could be done through the existing import licensing system. II. The import restrictions are carried out mainly through a system of a prograramme for imports and on the basis of previous import licences issued by the Ministry of National Economy. Import programmes are annual and were pub-divided before July 1, l949, on a quarterly and, after that date on a semiannual basis. The programme indicates the quantity of each item to be imported by the state and by private trade on an ad valorem basis; and it indicates sources - whether from the dollar or sterling area or from countries with which Greece has bilateral. clearing agre monts, Import permits are granted to importers within the framework of the quotas provided in those programmes. Licences are granted for some items according to the past importing activity of each applicant importer directly by the Ministry of National Economy, For others they are granted by the Central Committee of Allocalions representing the Chamber of Commerce and Industry on , previous allocation basis or on the quota for each importor as determined by the local committees of the Chamabur of Comrmerdo. This system does not, however, prevent State scrvices or institutions from supplying their exclusive requirements. GATT/CP/62 Page 99 GREECE (Continuid) The following criteria are used for determining the import quotas of the various importers: activity, professional practice in trade or induastry, lowest unit price and taxes paid, the latter having boon added recently. In accordance with the criterion of price, import licences with respect to imports by individuals are granted when the prices. asked for the itemsto be imported are not higher than the prices of comparable goodsfrom other countries. This condition is imposed for exchange reasons in order to prevent an export deficit through unduly high prices. With respect to State imports, licences are granted to the lowest bidder in order to ensure the most profitable terms and prices. Apart from programmed items. further imports of non- programmed items are permissible subject to licence. These imports can be effected by free exchangeor in the place of certain imports of programmed items, so long as the importation of off-programme items is considered essential during the operation of import programmes, or in execution of certain bilateral and clearing agreements. They may also be effected on the basis of private barter, mainly with countries with which Greece is not bound by agreements or by war reparations, or without exchange formalities. In the latter case imports may be effected by persons regardless of occupation when they can prove that they hold exchange sufficient to pay for the items to be imported or that the items are sent as gifts or for financial assistance. On the basis of the foregoing distinctions betweenimportsand ways of assessing their essentiality, import licences are granted by means of the following: ECA dollar aid, free dollars, indirect aid in pounds sterling, free sterling, clearing and bilateral agreements with OEEC countries, private barter, reparations and without exchange transfers. Import restrictions in the sense of Article XIV; 1(c) of the General Agreement, regarding doviations from the rule of non-discrimiration, result in themaineither from bilateral or clearing agreements concluded in order to safeguard the balance of payments or from exhaustion or decrease of the country's available resources of certain currencies. III. The following are the principle charges inthesystem of import restriction which have been made since 1 January

(a) The application of four-year programme of American aid made it possible for importstobeprogrammed on a stable and long-term basis and pemitted the maintenance of commercial relations with countries whore it would have been impossible to carry on trading because of the lack of Greece exports. (b) The substitution of semi-annual imports programmes for the original quarterly ones facilitated importation, (c) The conclusion of commercial clearing agreements concurrently with the signing of bilateralagreements permitted importation of merchandiswhichhitherto hadbeen impossible owing to shortageof exchange. GATT/CP/62 Page 100

GREECE(Continued)

(d) The liberalization of imports from OEEC countries inaugurated on 31 December, 1949. This liberalization is an important step in the government's efforts to return to a system of free commercial transactions and will apply to approximately 57% of the total value of imports from those countries. To be sure, the liberalization concerns a certain group of countries and has a preferential character within this group but it is an outstanding stop in the direction of liberalization and elimination of restrictions and toward the realization of the rules of the Havana Charter. In accordance with the procedure specified importation of freed goods may be effected without quantitative restriction or import permit from the Ministry of National Economy, but it requires the approval of the Bank of Greece in respect of the ways of payment of the cost of the imported goods through the opening of an irrevocable credit, and also the approval of the Ministry of National Economy as to the unit price of the product. With regard tc importation requiring payment by other means (cash against shipping documents, etc.) the previous system of import licences remains in force. GATT/CP/62 Page 101 (continued)

IV. The volume of merchandise imported into the country during 1948 is less by approximately .20, than that of the prewar year 1938 as a result of the policy of import restriction. The following list gives the imports of commodities in categories during those two years.

Unit 1938 1948 Percentage change 1. Stock-breeding, Head 545,000 313,500 - 43 fishing products Ton 30,500 80,000 160 2. Agricultural products Ton 595,000 671,000 " 13 3. Horticultural, and edible products " 13,000 6,500 - 50 4. Oil seeds and fruits, oils and wax materials " 17,700 6 , 500 - 69 5. Spirits " 670 1,025 - 47 6. Sugar and confection- ary " 121,300 8,000 - 34 7. Hides, hide items and pelts " 5,900 3,200 - 46 8. Forest products and wooden items " 186,000 115 000 38 9. Ores " 1,370,000 1,005,000 27 10. Metals, metal items " 165 ,000 100,000 38 11. Scientific instruments, musical instruments, watches " 1,900 1,450 - 24 12. Pottery (ceramics), andlassware " 8,350 7,400 - 11 13. Chemicals and pharma- ceuticals " 149,000 114, 0O0 -24 14. Distillates, perfumes, products of perfumery, soap 82 138 68 15. Dyestuffs, products for dyeing and , tanning " 11 500 9, 900 - 15 16. Paper, paper items and products of printing, arts 34,000 17. Rubber, gutta-percha " and cerates 1,230 527 - 57 18. Fibers, textiles and textile items 25,000 16,200 - 35 19 . Toyplaytings, sports 67 10 - 85 20. Haqtter's items (Pieces (Pieces 55,500 174 - 98 ( tons 60 17 - 72 21. Transport equipment ( Pieces 390 355 -9 (instruments) tons 5,150 8 ,300 -61 continued) GATT/CP/32102 GREECE ( Page Unit 1938 1948 % Chang

22. Gune, explosives tons 900 26 - 97 23. Ship-building items, materials and ( pieces 82 6 - 93 products ( tons 220 3,270 - 1385 24. Miscellaneous " 350 320 - 8 Total head 545,000 313,500 - 42 pieces 55,972 535 - 99 tons2 2,742,879 2,262,883 - 18 The decrease in imports is mainly due to reductions in the Collowing products: Fresh vegetables from from 4,000 tons in 1938 to 56 in 1948 Coffee 7,700 " " to 5,000 it Linseed " 3,400 " " to 1,750 " Sugar " 80,947 " " to 67,443 " Molasses " 38,668 " " to 10 890 " Rice " 28,356 " to 7,690 " " " Cocoa " 1,635 " to 1 ,006 " "" " Hides 5,665 " to 2,629 Construction " " It timber 164,457 " to 115 4 776 Coal 896,622 to 247, 429 " Coke 77,633 to 7,562 " Pig Iron " 11,456 " to 6,556 Rolled Iron " 67,998 to 22,290 Iron sheets " 32,391 to 21,260 " Agricultural " to 1, 959 " machinery 3,205 " Potassium Carb- onate " 6,737 " to 2,926 it Copper sulph- " urate " 8,464 " to 24 " Ammonium sulph- urous 21,656 " to 16,470 " Fluid ammonia 9,971 to 770 " Chemical fort- " ilizers 74,633 " " to 52,130 Tanning and " dye-stuffs " 7 ,672 " " to 5 ,360 3,196 " to 1 ,392 " " Jute 3,470 " to 1,160 Flax, hemp, jute yarns " 1,043 " " to 65 " Flax, hemp, jute 535 " " to 63 " textiles Jacks 4,161 " to 1,970 " " " to 172 Cotton threads " 558 " " Cotton textiles 3,375 to 1,539 " Wool yarns and " threads 1,608 " " to 809 " " Wool textiles 238 " to 194 " Silk textiles " and Velvet 10 " " to 2 Silk socks and " stockings 9 " to Toys 53 " to 7 " GATT/CP/ 62 page 103 GREECE (Continued)

This reduction in imports is mainly due to: (a) The decrease of Greek exported and of invisible resources (b) To the reduction of international production which rendered difficult the procurement of certain basic products, entailing The establishment of the Inter- national Food Bureau and of international and governmental allacations riced fertilizers, wheat, jute, hiders cocoa.. et), and which led to certain basic items being availablee only against dollars. (c) To the dilacontuance of commercial transactions with the countries of the eas-tern blue; and (d) To the hostilitiles which continued after the end of the Second World War, as a result of which there was disruption of the productive machinery. The fighting in Greece resulted in a decrease in the volume of imports of capital goods, funds and war materials and an increase in imports of consumer goods such as wheat meat, gasoline, naphtha, sodiumnitrate, cotton, etc. In addition to the reasons stated in paragraphs (b) and (c), the decrease in imports may also be attributed to the reduction or cessation of certain imports from some countries and the substitution of other countries as well as to a shift in the habits of consumption as, for example, from slaughtered cattle from, Yugoslavia to frozen meat from South America. For the same reasons there is a marked reduction in relative terms in the participation of certain countries in Greek import trade.

V. The Government does not consider that the discriminatory import restrictions applied by Greece are she cause of the present decrease in the volume ofexports. The deficits in the Greek balance of payments with various countries is the best evidence of this. The cause of the reduction exports should be ascribed to the restrictions and methods of importation used by other countries. Those countries way be listed in two categories: (a) Countries in the dollar and sterling areas which eliminate or relax their restrictions and (b) other overseas countries, in particular those of South America, which impose strict restrictions on imports. As regards countries in category (a) Greek exports are adversely affected by the lack of restrictions and the absence of quotas for Greek products which owing to their superior quality, sell at higher prices than similar products in other countries. However the alllecation of quotas by South American countries does not vercome this difficulty; since they are fixed on an ad valorem basis. GATT/CP/62 page 104 GREECE (Continued)

Further Greek exports to countries in category (b) are adversely affected by their special trade agreements with countries such as Spain Italy, Portugal and France which make provision for imports of similar products from those countries, Since no similar agreements exist for Greece, and since import restrictions have been imposed, Greek export trade is handicapped. Another difficulty encountered by the export trade arises from the rates of exchange applied to imports of Greek products. As a result of these rates and of the import restrictions, the consumption of Greek products, which are treated as non- essential is severely restricted, Moreover, the countries which restrict imports from Greece impose charges on essential goods which Greece imports from them. In view of the rate of exchange applied to imports in Greece, which in no circumstances exceeds the official rate, it should be pointed out that the rates applied by other countries constitute a form of discrimination against Greek products. GATT/CP/62 page 105

II. Import restrictions are not exercised directly through exchange control, but rather through a system of direct licensing of imports of commodities from other countries. These countries are classified, by the sterling area as a whole, of which India is now a full-fledged member, into (a) dollar area, (b) other hard currency areas and (c) soft currency areas, For India, South Africa, though a member of the sterling area, constitutes a fourth category) because arising out of racial discrimination against the Indian population in that country, the Government of India decided in July 1946 to prohibit trade between the two countries For the purpose of licensing of imports, goods are divided into five classes: (a) Gnods under the open general licence for imports from soft currency countries; (b) Goods for which import licenses are granted within monetary ceilings from soft currency countries; (c) Goods for which import licenses are granted within monetary ceilings from dollar and other hard currency countries; (d) Goods for which no licenses are granted for imports from dollar and other hard currency countries; andy (e) Goods for which no import licenses are granted from any source whatsoever, In common with the sterling area India has to exercise the utmost economy in imports from dollar and other hard currency areas. The strictest criteria of essentiality have to be satisfied, due weight being attached to the factors of delivery dates and price advantage, In each case, it is also to be examined whether the goods in question are not available in a soft currency area, In relation both to hard and soft currency areas, since foreign exchange has to be spent the quantum of indigenous supplies available is also taken into account in fixing the overall monetary ceilings up to which import of each commodity is to be permitted, GATT/CP/62 page106 INDIA(continued)

India has entered into a number of trade agreements with individual countries with a view to ensuring the maximum possible trade with those countries for meeting reciprocal demands -and developing possibilities uf obtaining goods from soft currency areas for which otherwise scarce currencies will have to be spent. These agreements are not, however, exclusive in character, for they leave it to the trade to work up to the prescribed ceilings depending upon economic factors such as prices , delivery dates, etc. The distinction made between dollar and other hard currency countries and soft currency countries occurs in virtue of the provisions of Article XIV (a) and (b).

Ill. In February, 1948 under the. Sterling Balances . rs^.vmant concluded with the United Kingdom Government restrl.. :ions were imposed for the first time on the convertibility of India's storling balances, and not more than £10 million were made available for financing our deficit with the hard currency countries. This made it necessary to apply import restrictions with greater severity against'the hard currency countries, from which India had to import such essential commodities as food grains and capital goods, than against the soft currency countries. Under the same agreement North, Central and South America and adjacent islands (excluding territories which are pars of Sterling Area, Dutch Monetary Area and French Monetary Area) Japan, Phillipines' the Belgian Monetary Area,. Portuguese Monetary Area (excluding Portuguese India), Sweden, Switzerland, and. Lewchtenstein were declared as hard currency countries. 3y June 1948 dur balance of payments on current account with soft currency Preas had developed a large surplus. This coincided with an accentuation of the inflationary tendencies already in operation. In July. 1948, therefore, Open General Licence XI was issued covering a large number of articles mostly essential censatner goods and industrial raw materials. In July 1948, under another Sterling Balances Agreement cc-.ev iesed with the United Kingdom Government Brazil, Chile and Uruguay,and later Peru were excluded from the hard currency countries and reclassified as soft currency countries while the joint United States-United Kingdom Zone of Germany was.;.i m.ded in the hard currency area. ..Under the same Agreement, it was agreed that so long as our trade deficit with Sweden and Switzerland did not exceed the 1947 trade, no hard currency liability would be involved, Accordingly, O.G.L.XI was extended to Sweden and Switzerland from the 22nd July 1948. On the" 22nd September 1948, O,G.L.XI was extended to Japan. This ras done because the trade agreement concluded between Japan and the sterling area countries had provided that for the years beginning from 1st July 1948 any balance in favour of India, subject to a maximum limit of £3.5 million would be convertible into U.S dollars and it was expected that even if imports from Japan were allowed to the maximum extent freely India would be able to achieve this surplus in view of the credit in her infavour in the Raw Cotton Open Account. From - July to November 1948, in pursuance of the Government's a-a.-i-inflationary policy, the scope of O.G.L. XI was extended from time to time. In November 1948 certain categories of luxury goods were also added to the O.G.L. list. GATT/CP/62 page 107

From the 31st December 1948, Sweden was placed on the soft currency list. On the 31st January 1949, the Open General Licence for Switzerland was cancelled, since that country was then declared to be a hard currency country- From the 31st March 1949, the O.G.L. in respect of Japan was withdrawn, since our trade with that country had then begun to show a large deficit. On the 5th May 1949, O.G.L. XI was cancelled, and on the 19th May 1949, O.G.L. XV, which included a smaller number of articles, was issued. The cancellation of O.G.L. XI was necessitated by the fact that the liberal import policy followed since July 1948 had led to an excessive flood of imports and this combined with a simultaneous reduction in exports resulted in a trade deficit which was too large in comparison with the foreign exchange resources available for financing it. In view of the marked deterioration in the balance of payments position, the restrictions on imports from the dollar and other hard currency countries were also tightened. During January-June 1949, the licensing of commercial imports was severely curtailed, and consumer goods were not licensed for imports from dollar and hard currency areas, Even the licensing of imports of plant and machinery and industrial raw materials was restricted to such commodities as could not be obtained easily from other sources. Special attention was given to imports of machinery goods. Where such goods could be obtained front the soft currency areas and were such that their contribution to economic development was not very materiall. licences were refused. A number of items like mineral oil, which were hitherto liberally licensed, were placed in the restricted category. In the last week f June 1949 in vie of the heavy depletion of the Sterling :,re, Central Reserves$ the licensing of imports from the dollar and other h3rd currency countries was temporarily suspended. The suspension remained in effect until about the middle of Septembdr 19419, in July-August 1949 another Sterling Balances Agreement was concluded with the Unite Kingdom Goverment. The main features of this Agreement were as follows. In the first place, provision was made to regularise the overdrawal made daring July 1948 to June 1949 so that this did not affect the release of sterling for l949-50 and 1950-51. Secondly when the O.G.L. XI was withdrawn in May 1949, it was considered desirable both in the interest of our own economy and that of the exporting countries that the process of bringing down our imports should be a gradual and tapering one. For meeting the charges arising from this process, the United Kingdom Govermient agreed that a further sun of approximately £50 Million would be released in addition to the normal release. Thirdly, the annual release for 1949-50 and 1950-51 was increased from the original figure of 40 million to £50 million. Fourthly, India became :once more a member of the sterling area and the quantitative limit on her drawings of dollar and other hard currencies from the Central Reserves was withdrawn. It was also agreed by all the sterling, area countries,including India to limit dollar imports during the twelve months ending June 1950 to 75 per cent of their respective dollar imports during the calendar year 1948. The licensing, policy for the GATT/CP/62 Page108 INDIA(continued)tinue) period Julm-Dec1rber J949h whicl wauncedotmced on the 12th berteober 19s9, waa designed to implement these various onsisi.rn and involved severe restrictions on imporms frou all sources. On the 25t1 August 1949, O.G.L. XV was canceled and was replaced by ammuch :ore restrictive O.G.L. XVI which covered mainly essential raw materialss and machineryy. In September 1949 after devaluation,mport;ilpgrammejranri was again reviewed, but no drastic changes were considered necessary, sincp the Dolicy for the period had already been framed on a restrictive basis and announced only a few days before devaluatmpor InDorms froz the sterling area and the soft currency countries werc not directly affected, but in the case of certmin coreoditics, e.g. petroleum products which were imported from. theeMiddlp Ead , anA non-ferrous metals obtained frmn Comnonwealth sources, world prices were primarily determined by the prices of supplies from the dollar area, and hence prices tended to rise. Adjustments wore accordingly made onr this account in the import programme. As for the dollar area in view of the inelastice oturo.af India's exports, and the difficulties arisimg frou the non-devaluation of the Pakistan rupe, it eema:.1 uore than ever necessary that this should be severely regulated. Pakistan's decision not to devalue her currency created a new threat to India's balance of payments position by increasing the pricess of all imports from that country by forty four per cent. In spite of thos in 'rder to carry out the spirit of the Inmer Doninimp Comiodities -Agreenent no action to restrict imports from Pakistan was.taken by India for smme tipe. Pakistan, however cancelled h r Onen.General Licence in respect of Indi.an goods after devaluation and this was later followed up under its Public Notice (o. 42C49)-l of o12th Nve4beunder wimde which the Pakistan Government placed a bam on i;oorts rf piece goods fro= India along weth th-me fro; a nof hard~har,1 currency countries. India is a soft currency area for all members *)f the sterling area, including Pakistan and the latter particularly had a heavy ealeknr of tZade ifaher l'vour vis-a-vis India duri4g 48/19. In spite of taese ftvourable factors Pakistan decided to ban imports ce oiece gooms fron India along weth thzse from hard currency areas and in the light of these dmentspraent India had no alternative but to withdraw the Onen General Licence for imports from Paklstan. GATT/CP/62 Page 109

INDIA (Continued)

IV. The import policy followed during July-December 1949 with regard to individual commodities and with respect to the various sources of supply has been clearly set out in Public Notice No. 1(23)ITC/49 dated the 12th September .1949, and its Appendices, a copy of which is sent herewith. The policy for the period January-June 1950 has not yet been announced, and a copy of the relative public notice will be forwarded, when issued. As regards the second part of the question, the following statements are attached. Statement I showing the value of import licences issued for different currency areas during the licensing periods from July-December 1947 to July-December 1949; Statement II showing the currency-wise distribution of India's import trade during 1937-38 to 1939-40 1940-41 to 1948-49, and April to November 1949; Statement III showing the value of imports into India of important commodities for the years 1937-38 to 1939-40 1940-41 to 1948-49, and April to November 1949; and Statement IV showing the currency-wise imports of certain commodities representing a cross-section of total imports into India during the calendar years l948, 1949. V. Being a soft currency country, this country is normally not discriminated against by the import policy of others countries. The only exception is Pakistants treatment of, our piecegoods, The effects of Pakistan's discriminatory treatment were to create a large adverse balance for India in the 1948-49 trade with Pakistan, until this country took steps to divert its exports to other countries GATT/CP/62

INDIA(continued) Page110 STATEMENTI

A statement showing value o, import licences issued for different currency areas during the licensing period from July-December 1947 to July-December 1949

Serial C I. F. V A L U E, R U P ES Serial Currency Area Juy-December 1947 Jan.-June 1948 July-Decer-ber 1948 Jan.-June 1949 July-December 1949 *figures up to Nov. 1949

1. Dollar Area Countries 160,81,27,620 136,39,45,375 98,24,74,717 35,11,79,060 7,60,40,934 2. Hard Currency Countries 21,82,84,546 23,27,16,156 21,43,84,758 15,39,28,929 4,00,02,210 3. -Soft Currency: (a) Non-Sterling countries 62,01,21,007 126,27,56,740 61,83,70,857 4184,98,544 15,74,19 ,098 (b) Sterling Countries 61,54,01,160 221,32,39,713 117,66,55,427 88,65,92,195 30,92,59,188

Grand Total 306,19,34,333 507,26,57,984 299,18,85,759 181,01,98,728 58,27,21,430

*NOTE:- This is next an analysis of the aggregate import trade, a part of which is not subject to licensing being either on Government account or admitted under O.G.L. GATT/CP/62 page III continued) STATEMENT II. Statement showing the currency-wise distributionof India's (Figures in lakhs of ruees)

Period Dollar Hard- Rest Grand total area currency 2 3 5 _ Year 1937-38 14,05 42,50 117,24 173,79 Year 1938-39 10,75 32,90 108,71 152,36 Year 1939-40 16,37 30,36 118, 56 165, 29 Year 1940-41 30,36 23,84 102, 77 156,97 Year 1941-42 41,66 13,57 117,92 173,15 Year 1942-43 24,74 1,30 84,10 110,44 Year 1943-44 21,12 1,60 95,05 117,77 Year 1944-45 56,63 1,66 145,27 203,56 Year 1945-46 77,14 5,35 162, 36 244, 85 Year 1946-47 61, 71 6,82 219,87 288,43 Year 1947-48 130, 82 15,55 252,25 398, 62 Year 1948-49 113, 75 31,02 373,23 518, 00

April 1949 8,28 7,12 34,66 50,06 May 1949 13,34 9,28 40, 08 62,70 June 1949 11,07 5,59 41,82 58,18 July 1949 10,10 3,62 41,76 55,48 August 1949.. 10,27 3,53 35,68 49,48 Sep. 1949 6,99 4, 21 26, 26 37,46 Oct. 1949 11,89 2,70 42,79 57,38 Nov. 1949 8,85 2,39 31,22 42,46 GA.TT/JP/62 INDI' (continued) GATT/C0P/62page 112 STATEMENT III

Statement showing the value of Imports into India of important commodities for the years 1937-38-1948-49 and the period April 1949-November 1949 __-*------(Figures in lakhs of rupees)

Description of goods 1937-38 1938-39 1939-40 1940-41 1941-42 1942-43 1943-44 1944-45 1945-46 1946-47 1947-48 1948-49 Apr.-Nov. 10 19492A 1 2 3 _ 4 5 _ 6 7 8 _ 9 10 11 12 13 I-B Fruits and vegetables 1,58 1,34 1,21 1,02 1,12 1,12 87 1,55 2,31 4,14 3,90 5,81 3,69 C. Grain Pulse and flour 12,17 13,76 21,81 14,35 15,02 31 31 8,09 9,19 19,03 22,96 6,51 70,98

3,. Provisions and Oilman's Stores 2,60 2,48 2,63 2,26 2,56 71 55 1,21 1,37 3,56 6,52 7,05 4,25 F. Spices 1,83 2,63 2,55 2,19 2,21 1,52 90 1,54 1,84 4,82 3,63 4,40 2,60 I. Other food and drink 57 38 63 50 1,01 90 1,57 2,51 1,81 78 2,90 2,04 1,22 J. Tobacco 85 1,05 1,17 1,34 2,52 1,33 1,60 2,90 3,91 3,59 4,58 3,62 1,43 I Other non*-metallic mining and quar-ry products and the like 1,85 1,75 1,48 1,13 1,12 1,89 3,29 5,41 5,72 4,50 6,20 2,27 1,86 J. Gums resins and lac 35 38 53 38 51 27 20 49 85 1,06 1,70 2,36 72 C. Oil vegetable, mineral and animal 18,70 15,62 18,64 21,03 21,76 27,76 36,48 80,71 79,61 32,55 36A97 37,66 40,86 iI, Cotton raw and waste 12,13 8,51 8,05 9,43 15,34 15,42 17,53 24,01 22,87 25,93 31,20 64,23 47.,65 P. Wool rew 85 62 75 2,79 2,77 2,96 4,02 2,10 3,09 2,04 2,44 3,17 2,65 i,. Wood and timber 2,68 2,58 2,43 2,61 2,74 16 12 2 5 20 3,10 5,02 2,45 Miscellaneous 1,07 1,29 1,50 1,10 61 31 30 2,00 2,10 4,68 5,11 5,76 3,90 III-C Chemicals, drugs and medicines 6J06 5,62 7,51 8,07 8,67 6,38 7,26 10,14 10,20 13,92 20,04 28,89 13,05 D. Cutlery, hardware implements and instruments (excluding electric instruments and apparatus) 6,84 5,81 5,57 5,05 5,42 3,26 2,77 3,68 6,41 11,77 213,83 16,44 12,24 E. Eyes and colours 4,99 4,06 4,67 6,28 6,97 5,43 8,30 7,92 11,42 11,66 18,04 25,66 8,31 1 * Electrical goods and apparatus (other than machinery) 3J47 3,31 2.87 2,49 2,40 1,61 1,53 2,61 4J53 5,96 9,72 11,40 10,48 r Machinery of all kinds including 59,14 80,87 73,24 belting for machinery 17,98 19,72 15,37 .1,83 13,70-I 10,52 11,30 16,30 22,75 32,75 INDIA: (continued) GATT/CP/62 STATEMENTIV page 113 STATEMENT SHOWING THE CURRENCYWISE IMPORTS.OF CERTAIN. COMMODITIES REPRESENTING A CROSS SECTION OF TOTlL IMPORTS INTO INDIA. DURING THE CALENDAR YEARS 1948, 1949. * (Figures in thousands of rupees)

of T_ Rest. Tot . Description goods Total__Dollar Lcard (2) (3) . (4) (5) (6) (7) (8) Food Drink & Tobac (a) Grain, Pulse & Flour 141,81,76 2,36,54 39,78,08 56,96,38 31,06,93 3,09,42 56,20,10 90,36,45 (b) Milk dried cr Powder 30,144 26,43. 56,87 35,62 3 87,23 .. 1922-88 (c Tobacco un-manufactured 2,64,)1 1,47 2,65,48 1,84,20 1,54 1,85,74

TOTAL CLASS I 17,76,21 2,36,54 40,05,98 60,18,73 33,26,75 3,09,45 57,08,87 93,45,07

____---______------___ -_ -_____-_------II. ~ materials &- produe & artpioles mainly unmanufactured (a) Cotton raw 2,47,70 .5,33 39, 17.,03 41,70,06 5,49 91 76,70,52 76,76,92 (tL Oils mineral 14,51,39 59 23,16,28 37,68,26 10,15,04 1,05 38,75,89 48,91,98 (c) Wool Raw & Wool Tops 11 2,75,17 2,,75,28 1,35 3, 78,43 3,79,78 (d) Zinc or Spelter 2,43,13 81,58 58,18 3,82,89 .... - 2,72,57 56,07 79,30 401,94 ..TOTAL CLASSII 19,42,22 87,61 65,66,66 85,96,49 12,94,45 52,83 1,20,04 13,50,62 .____-_.-_.--______---______--_ ---_____ III. Article whollyormainly manufactured (a) Chemicals:- (i) Caustic Soda 3,47,43. 23,44 3,88,41 7,59,28 75,89 2,37 39,67 1,17,93 (ii) Sulphur 57,03 74 57, 77 64,66 1,71 66,17 (iii) Dyes & Colours 8,74,81 1,99,07 5, 26,99 16,00,87 2,55,04 2,55,74 7,19,79 12,50,57 (iv) Glass-Sheet & Plate 45, 66 26,74 72,40 27 69,31 58,10 1,27,68 (v) Electric Instruments & Apparatus &-Parts (a) Lamps & Parts 26,90 36 1,17,08 1,44,34 12,14 5,01 2,58,37 2,75,52 (b) Wireless receivers & apparatus 35,67 1,09 1,28,42 1,65,18 23,99 1,24 1,55,64 l180,87 (vi) M (i) Agricultural 1,70,93 18 70,12 2,41, 23 3,65,08 6,O3 1,28,22 4,99,33 (ii) Boiler 12, 53 47 3,27, 25 3,40, 25 96,00 26,34 5,l2,12 6,34,46 (iii) Machine Tools 1,18,43 4,29 2,37,63 3,60,35 80,66 5,15 2,54,10 3,39,91 (iv) Refrigerating 91,70 3,12 21,34 1,16,16 1,04,05 16 52,28 1,56,49 (v) Typewriters 77,41 2,12 13,30 92,83 1,19,48 9,19 7,71 1,36,38 (vii) Manures 38,80 78,62 2, 64,39 3,81,81 1,04,30 1.,05,72 3,13,67 5,23,69 GATT/CP/62 page 114 INDIA (continued)

(1) (2) (3) *. (4) (5) (6) (7) (8) (9) I

(viii)Metals & Manufactures (i) Copper manufactures 3,10,80 87,16 2, 23,16 6,21,12 4,41,90 56,38 1,14,58 6,12,86 *(i) Stoel (Cast.) Ingots, Blooms, Billets LI Slabs 9 9 45,82 3,64 49,46 (iii) Tin Plate 1,07,28 18,41 1,25,69 *2,34,45 5,41 27,64 2,67,50 (ix:) Paper News printing 1,31,29 16,84 2,70,28 4,18,41 1,06,97 14 2,49,83 (x) Textiles (i) Art Silk Yarn 5,39 25,74 8,20,34 8,51,47 7,07,51 7,45,03 14,52,55 (ii) Cotton Textiles including Yarn 3,73,19 58 47 10,17,52 14,49,18 34,97 5,89,60 18,84,32 25,08,89

(i) Air craft & Parts 4,21,26 17 75,38 2,36,81 1,33,28 14 1,11,07 2,44,49 (ii) Motor-cars, Omnibus, Vans & Lorries 4, 21,27. 5,85,92 10,07, 27 1,34,53 71 3,16,84 4,52,08

TOTAL CLASS III 33,62,21 5,46,88 51,33,42 90,42,51 23,87,47 1;8,91,97 59,54,33 102,33,77 GRAND TOTAL CLASS I-III 70,80,64 8,71,03 157,06,06 236,57,73 70,08,67 22.,53,45 236,67,34 .329,29,46

TOTAL TRADE 123,86,90 17,74,38 313,28,33 454,89,61 121,18,77 51,58,72 437,17,80 609,95,29

DV/ll-3 GATT/CP/62 page 115

ITALY (Translation) I. Italy is at present applying quantitative restrictions on imports in accordance with Article XII of the General Agreement on Tariffs and Trade, in order to protect her balance of payments.- Such restrictions, which were introduced in Italy in 1935, have had to be maintained. owing to the persistent disequilibrium of her balance of payments. The situation was further worsened because of the considerable losses suffered by the national economy during the war. II. The system of restrictions varies as between those of Italy's trading partners with which Italy has trade agreements, and. those with which she has not. Countries. with_which With such countries imports and exports take place in accordance with the terms of the agreement, which, usually, contains import and export quotas. It is pointed-out that these agreements besides increasing the volume of trade allow a considerable -relaxation of restrictions through the setting up of quotas which are sufficient to cover the demand, and, above all, through the abolition in practice of the quotas themselves by freeing importation and exportation. This is known as the system "a dogana" which allows importation without license,. Payments are effected mainly through clearing arrangements (France, Belgium-Luxeriburg, West. Germany, etc.). Only when the clearing- rate of exchange would become, a serious obstacle to the normal flow of trado between the two partners exchanges take place on the basis of privnto barter. deals (e.g. Czecho- slovakia), or of "Reciprocity" transactions, which are, in effect, private barter deals which take place under direct, supervision of a governmental institute. (Ufficio Italiano dei Cambi). Payments between Italy on the one hand, and the United Kingdom Dominions, Colonies and British Dependencies on the other hand take place in pounds sterling. The restrictions mentioned above are applied in acoordance with Article XIV, 1: (c) of the General. Agreement on Tariffs and Trade. _Countries with which no trade agreements exists: Imports with these countries are authorized mainly with payment in hard currencies (dollars and Swiss francs)and, to a lesser extent barter deals are allowed, Quantitative restrictions on imports from these countries are approciabl y stricter because of the well-known shortage of hard currencies. Import licences are generally granted on purely commercial grounds (quality, price, etc.) GATT/CP/62 page 116

ITALY (Continued)

Quantitative restrictions on exports for payments in hard currencies are limited to few products. As in the case of countries with which trade agreements exist, restrictions are applied in accordance with article XIVy l:(c) of the General Agreement on Tariffs and Trade.

III. No substantial modifications have been made to the system regulating imports in the last two years, It should be pointed out? however, that a gradual liberalization of trade is being pursued - in the framework of the O.E.E.C. whereby imports and exports of many products will take place without licence. Italy has consequently liberalized imports of many goods consigned and originating from the other OE.E.C. countries7 and which account for 5O% of Italian imports from these countries in 1948. GATT/CP/ 62

Page 117

(a) 2.0 .z,--n ai .-,SU-, *..rees an annual quota ofwMheat tor 30,-000 tos; and the agrement t ol special supplies foresees a further uotao fl 00,000tons;9

ungary, with whcsh there is a qutza for Wheatof30,00k tons, Importso'f heata, in the frist nn-e monhs; of19499 reached a total of ,497,842' tons of which were imported from the United States ofAhmeica 38,648 fromthe Arecntne, and substantial quantities from -he .SWS.R. soft wheat;70,228tons). cis0e l:) CQa.1 Coal is produced in scantitiesrnti t in Italy, and is imported from different countraccordane1ccrdan with the quixed byl>xeJ 1 existing trade agreIn the ;n t past coal hasmberted fromted fr. the United StatesricaAmezMarshailtMlanhdollars, lP~:- such imports aret howecreasingreasinr as Eurrpeantionduclv- increeses ni teo Kingdan, PolaMd,e FranBelgium.d 3.giw (GCrmany, Coal has recently been ininided J the list of goods which ixequitno licence onsigned or oned natingifrom CigCfr GEEO co"ntries4 A licencells sti.'edequircd fimpertation ortatio of coal untrieswutriGs not belongtng to 'he OEEC The quanticative -ontcoalimportsresis withthe .w.istryin`L~st of Industrommerse (Coul Committee).Atpresent,as has alres has aady been mentioneisprincipally impormed fror ted Unirte States on Marshall Plarsdoll a-. Other suppliesl,fwithin the OEEC. thare .OEC WeanyGermnrk0,0002OV0CO rons th- mon-h in, accordancellith a.Locations of theiEconommissionna ssEe foe (E. C. E.)FC E, , which in hi ch i accordancehe th tA-e o.ace'greement supplies 60,000tons n per monthnited Urn..edmKingdoihich present-7-eso agreements provide for the import,0f 150n000 tomonth. rnctecial psv 1.atypes of coal are also imported lgium.although the tradeagreements at presents I)~eSe in force contaius no qaotceal. ooma As-rnon-membersof the s c'f t EEG coal is iedrortsJPolandin accnd. ix%orwance iJh the trrde agcee~- ment at prinenorce fozr Ar..ridirig 5 --I. x, i Vm.n:vvr' tons, GATT/CP/62 page118 ITALY (continued) Coal is also imported from Yugoslavia, with which there exists a quota of 45O0,000 tons per year of Arsa coal; and from Czechoslovakia with which it was agreed in 1947 that remittances of Italian workers, in Czechoslovakia would be transferred in the form of coal, In the first nine months of 1949 imports of coal and other mineral fuel, natural or carbonized, including coke amount to 7,385,664,tons, In particular coal imports (excluding coke) from the United States amounted to 3,522,293 tons from Poland 1,466,008 tons; from Germany 1,209,918 tons, and from the United Kingdom 631,611 tons. (c ) Cellulose: Cellulose for rayon and paper is principally imported from Sweden. Previous quantitative restrictions have been abolished with the agreement of 15 November, 1949, Cellulose is also imported from Norway, and imports thereof have also been liberalized. The agreement in force with Austria provides for a quota of chemical pulp (cellulose) for paper of 35,000 tons per year, With Finland Cellulose may be imported through the clearing agreement between Finland and Italy without licence; Cellulose can also be imported from Finland through "reci',-ocity" deals, From the United States Cellulose is imported with Marshall Plan dollars, A quota for the v-lue of 800,000 dollars has also been agreed upon with Garmany, On the whole Cellulose from the different European producers is practically exempt from the quantitative restrictions and has been included in the list of "liberalized" goods when originating and consigned from the OEEC countries. In the first nine months of 1949 Cellulose imports amounted to 13,535 tons, of which 9,069 tons were imported from Sweden. (d) Raw Cottons Cotton is produced in very small quantities in Southern Itally, and supplies have, therefore, to be obtained from abroad. Imports are mainly from the United States. Substantial quantities are also imported, principally from Egypt against payment in pounds sterling; from Mexico and Brazil against payment in hard-currencies or through barter deals' from the Indian Union against payment in pounds sterling. Import quotas of raw cotton are included in the agreements with Belgium-Luxemburg, (1,000 tons per year); with Turkey, (2,000 tons per year), Purchases of cotton for a value of ten million pounds sterling are planned from the sterling area. Cotton originating and consigned from the OEEC countries has been included in the list of products requiring no licence, Imports of raw cotton in the first nine months of 1949 amount to., 15,147 tons subdivided as follows USA, ill 22 tons Egypt 1,873 Mexico 8O4 Indian Union 481 " Brazil 193. " GATT/CP/62Page119 ITALY (continued) (e) Cotton Textiless Cotton textiles are at present imported in accordance with the provisions of trade agreements in force. At present there are only quotas for Fancy Cotton Textiles of French.francs forty million from France, and a quota of textile cottons for a value--of fifteen thousand pounds sterling from the United Kingdom. Cotton textiles are also imported from Switzerland through "reciprecity" deals in accordance with the agreement in force. In the first nine months of 1949 imports of cotton textiles amounted to 157,300 kilos, of which 116 200 kilos from Switzerland; 8,600 kilos from the United Kingdom; and 2,100 kilos from Franoet (f) Woollen Goods: The same applies to woollen goods. Commercial agreements in force provide annual quotas as follows France 200 million Fr. francs Western: Germany 115 000 dollars Belgium 15' million BeL, francs United Kingdom 500,000 pounds sterling. Imports of woollen goods areas therefore, subject to quantitative restrictions, and are principally impoated from the United Kingdom. In the first nine months of 1949 imports of non-printed woollen textiles were 137,900 kilos of which 68,900 kilos from the United Kingdom; 33,800 .kilos from France; 14,700 kilos from Belgium. (g) Arae. Rum and Whisky; The import of spirits is allowed in small quantities on the basis of provisions contained in trade agreements in force. Import quotas for spirits are included in agreements with France, Notherlands. United Kingdom, Denmark and Spain, Howeverf Rum and Whisky are only mentioned in the agreement with the United Kingdom, and Rum is mentioned in the agreement with Frances Imports in the first nine months. of 1949 amounted to 151,300 litres, most of which from the United Kingdom (57,600 litres, in bottles), Imports in the same period against payment. in hard currency amounted to 36,200 litres, in bottles, from the United States; and 225500 litres, in bottles~ from Canada. (h) Pig Iron and Steel: Imports of Pig Iron are allowed at present to cover needs not met by national production, Trade agreements in force contemplate specific quotas as follows GATT/CP/62 Page 120 ITALY (continued) France Pig Iron 30 000 tons Netherlands Pig. Iron 8,000 tons Belgium Haematite and *Phosphorus Pig Iron 2,000 tons Poland Pig Iron 3,000 tons *Hungary Pig Iron 5,000 tons W. Germany Pig Iron 700,000 dollars Austria Steel-making Fig Iron 33>000 tons Crude foundry Pig iron 63,000 tons Spain Haematite and. Phosphorus Pig Iron 3,500 tons Norway Vanadium Pig Iron 500,000 Norwegian crowns Imports of crude, common foundry and steel making Pig Iron in the first nine months of 1949 amounted to 17,973 tons: the principal suppliers being the following: Austria 12,249 tons France 1,904 tons W," Germany 1,583 tons Spain 1,231 tons The same applies for Steels. Trade. agreements in force include quotas for steel from Austria (common: steel ingots, :billets and slabs 7,000 tons); special hot-rolled steel 1,500 tons; forged steel in bars 500 tons; common hot-rolled iron and .steel etc. ,2600 tons; smaller quotas cover other types); from France (steal561000 tons; steels, high carbon, special, stainless, hot and cold forged and rolled, in wires, drawn, rectified, etc. 3,950 tons); from Sweden (steel, stainless, in bars, wires, tubes,etc. 2,500,000 Swedish kroner; special forged or hot-rolled steels, etc. 1,500 000 Swedish kroners; high speed and super high speed steels and bars 800,000 Swedish kroners; hoop steel, cold-rolled, etc, one million Awed!Vsh kroners; special steels in bars for ball-bearings etc. Swedish kroners two million; steel for electrical resistances in strips, hoops and worked without specifications Swedish kroners 750,000 steel rods and hoops, hot-rolled, Swedish kroners 500,000); from Poland (steel ingots 3,500 tons); from Hungary (steel in blooms 400 tons); etc, The trade agreement with Belgium-Luxemburg contains a quota for products of the iron and steel industry; iron) steel in blooms, and billets, common$ hot-rolled iron qnd steel including sheets plates anid shapes sections, etc. 50,000 tons;. on the quota of super. high speed steel for manrats for a value of eight million Belgian francsS and a quota for cold.-rolled iron and steel of ten million Belgian francs. The supplementary agreement in force with Western Germany Trig-zone - and contains quotas for hot-rolled products (600,000 dollars), and cold-olled (one million dollars), imports of common steel ingots during the first nine months of 1949 were 1,252 tons; of which 593 tons from Belgium, 430 tons from Yugoslavia, 209 tons from the United States. Imports of common steel in blooms and cans were 224 tons, of which 200 tons were supplied by Belgium. Lastly, total imports of iron and steel in bars and rods in the nine month period were 9,410 tons; of which 3,565 were supplied by Belgium 1,452 by France; 551 by Austria; 547 by Poland, and 1,652 by the United States (against Marshall dollars), GATT/CP/62 page 121 ITALY (Continued)

(i) Copper Wire Imports of Copper Wire were very small because the domestic industry of semi-worked copper products is capable of fulfilling domestic requirements. At present copper wire is imported practically only from the Unites States, against Marshall dollars and from Belgium against the agreed quota of electron-. lithic copper (in cakes, rods, wires, etc); In the first nine months of 1949 total imports of copper and copper alloy wires, crude and with circular section, were 87 Belgium,tons of which 40 tons from the United States, and 32 from (J) Machine Tools: Italy has a well developed machine tool industry for all types. Considerable quantities are produced and exported, and only special types are imported from other countries in cases where the latter have developed a special skill; or in cases when it is so required by trade agreements. There are at present quotas for the impart of machine tools from France (110 million French francs)* from Belgium (machine tools for metal working 75 million Beigian francs); from austria (220 million lire); from the United Kingdom (680,000 pounds sterling); from Denmark (special machine tools); etc. Imports of automatic and non-automatic machine tools in the first nine months of 1949 were 335 tense and came p-inci- pally from the United States (264 tons). Imports of machine tools are limited to such small quantities not so much because of severe import restrictions, but rather because these machines are produced in.Italy and foreign production is resorted to only in cases where special types are required, for the production of which other countries have achieved a high degree of perfection.

V. It follows from the answers to previous questions that quantitative restrictions on imports have been considerably alleviated within the framework of commercial agreements which by reducing in a greater or lesser degree payment difficulties have made it possible to achieve a higher volume of trade, This has, however, not bee possible in the case of countries bound to Italy by commercial agreements, and with regard to which quantitative restrictions on imports may also have acquired a discriminatory character, The numerous trade agreements entered into by Italy have made it possible - through granting of concessions for the application of restrictions to keep exports towards interested countries at a much higher level than would have been achieved should the principle of non-discriminaton have been rigidly followed. With these countries, therefore, the patterns of our export trade has generally been preserved. GATT/CP/62 page 122NETHERLANDS

II. Every import and every payment relating to such import are prohibited unless an import licence has been granted, which is at the same time a permit to pay the required anount of foreign exchange. The legal basis for this syste.:I is two fold, On the one hand, the Import and Export Regulation Decree of 1944, authorizing the Minister of Trade, Industry and Agriculture, in consultation with the Minister of Finance, to prohibit restrict or regulate the importation : x portation of specific goods. By the Import and Export Prohibition Decree of 1945 the Minister, on the strength of this authority, prohibits any imports or exports unless an import or export licence has been issued by or on behalf of the Governuent's Central Import and Export Service. On the other hand, the Foreign Exchange Decree of 1945 forbids residents to make any payment to, or receive any payment from, non-residents, unless a permit is t from the NederlandseBank, as well as a number of documents specified by the Minister of Finance in the case of payments in connection with imported or exported goods. The Document Order of 1945 provides that the documents to be produced at the frontier shall include: an impoort- or export licence issued by the Central Import and Export Service, and a Payment licence issued by or on behalf of the Nederlandse Bank, In practice those two licenses are generally contained in one document. The reason for maintaining this licensing system is the necessity, in face of the prevailing balance-of-payment difficulties and the inconvertibility of currencies, to ensure that the available foreign exchange shall be spent on imports of such goods as are essential to the supply of the country and the rehabilitation of the Netherlands economy in accordance with the urgency by which they are needed, In principle, therefore, it is decided from country, to country, which are the limits within which and which are the classes of goods for which import licences can be granted, given the position of the balance of payments with that particular country. With regard to a.large number of countries, mainly belonging to the dollar- and sterling-areas, the import policy is determined by the Netherlands authortites themselves , in the absence of conventional engagemenrIts (accept as far as with regard to U.K., agreements on mutual import policy have been made in the case of a number of commodities). It should be noted here that on account of the difference in exchange position the number and description of goods that can be admitted from one are from the other, varies as well every year. For the areas concerned import programmes are drawn up under which import licenses are granted, the import programmes being adjusted to changed circumstances. With many other countries trade agreements have been conCluded, notably with such countries as have themselves enforced controls on imports, either on account of their exchange position or for some other reason. GATT/CP/62 page 123 NETHERLANDS(continued) Those agreements regulate trade by quotas, thus modera- ting the autonomy of import policy. In framing them the Netherlands aim at as voluminous an exchange of goods with its trade partners as possible. The extent to which and the products for which quotas may be specified in the agreements for this purpose will differ from country to country and depends, among other factors, on the balance of payments with such country and on the volume and selection of Dutch exports into that country. Once quotas have been laid down reciprocally in an agreement, import licenses will be granted up to the amount of these quotas additional arrangements being made if there are prospects ol trade for additional quotas. In the system of import control a distinction is made between agricultural products and foodstuffs on the one hand and the remaining products on the other. For the former group of products a system of import regulations has been in effect since the economic crisis of 1930, which neither aims at promoting the equilibrium in the balance of payments nor at restricting imports, but at stabilizing the prices of these articles on such a level that agriculture can continue to perform its essential economic function. These measures have been enacted in the Monopoly Decree Food Supply, Under this decree monopoly holders have been nominated for specified classes of products and any import is subject to their authorization. III. Within the framework of the European Economic Co- operation the Netherlands have drawn up a list of goods, which, on the assumption that balance-of-payment difficulties will be met, may be imported as from October 10th, 1949 without quantitative restrictions from countries participating in the OEEC and their Overseas Territories, with the exception of Western Germany and Switzerland * Economic Unions being outside non-discrimination rules no specific mention is made of arrangements within the framework of "Benelux".

X As from March 27, 1950 the liberalization of trade has been extended to Western Germany. GATT/CP/62 page. 124 NETHERLANDS (continued) 1., No but Surinam has a Foreign Exchange Control system to safeguard the balance of payments. II. The Foreign Exchange Control system which is at present in force, is based on the Foreign Exchange Decree 1947, which does not allow residents to make any payment to, or receive any payment from, non-residents unless a permit is obtained from the Exchange Control Boar . The system is Maintained in order to ensure that the available foreign exchange is spent on the importation of such goods as are essential to the country's economy, The documents required under the ir esent system are an import or export licence and a payment authorization, both issued by the Import and Exnort Control Board. The Board may ask for a pro-forma invoice, stating price No such invoices are needed as well as tine of delivery. naval on application for an import licence for wheat flour, beef edible oils and fats, textiles hardware mineral oilS and laundry soap. Import licences are valid for a period of six months;. this period, however, rnay on request be extended in case the goods ordered are considered essential, from No import licenses are granted for non-essentials soft-currency countries when Surinanis reserves of the currency concerned are below the safety level. As for imports from hard-currency countries, these are regulated by a Government Order, as amended on March 1, l91+9, which provides that a) for the importation of a category of "essential' goods" import licenses are granted without rem - striction; b) for the importation of "less essential goods" moderate annual quotas are fixed and subsequently divided among importers on the basis of their imports in a previous period; c) for a category of "special goods" import licenses are granted only by special authorization of the Foreign Exchange Control Board; d) for a category of "luxury goods" no licences are granted. countries with which the Netherlands The imports from a have concluded a (bilateral) trade agreement provide special case, as part of some quota fixed therein are destined for Surinam. Should Surinam want to import quantities in excess of its share in a quotum, the Nether- lands authorities will have to be consulted. from No restrictions apply to the importation of goods the Netherlands, except for some luxury articles the importation of which has until now not been authorized. Exportation from Surinam is not restricted. For all GATT/CP/62 page 125 NETHERLANDS(continued) (Surinan)

exports however, a licence is required from the Import and Export control Board stating the amount of foreign exchange that will be obtained. This amount has to be delivered by the exporter to the Foreign Exchange Fund (according to the provisions of the Foreign Exchange Decree 1947). 111. No changes affecting the system as such have been made since January 1, 1948, the only changes being the shifting of sone goods from one category to another. GATT/CP/62page 126 NETHERLANDS(continued) (Antilles) The law provides for such control but in effect no restrictions are applied at the present time. As has been laid down in the enclosed resolution of the Foreign Exchange Control Board, the previous consent of this Board is required for every order placed abroad with the exception of a large group of commodities (ao*. ood. and beverages, textile and clothing products). In practice, however, this consent is always given. Therefore it may be said that no import restrictions are being applied at the moment. Whenever, needed the relative regulations nay become effective again, as they were during and immediately after the war. Gradually the restrictions on the importation of luxury goods, to be paid for in dollars, in effect on January 1, 1948, have been removed, GATT/CP/62 page 127 NETHERLANDS (continued)

IV. The commodities mentioned in the following pages are a cross section of commodities affected by existing import restrictions. They represent about 40 percent of the import trade of the Netherlands. The provisions. policies at:'. practices followed with respect to import restrictions in the case of each of these commodities is she same as explained in answer to Question 3. Because of the reasons mentioned in the reply to question 5 it is impossible to describe the effects which existing import restrictions have had upon the distribution among sources of supply, VI Already before the war the Netherlands, as well as some of the principal countries with which it had trado, wore applying import restrictions, For this reason there is no -roper basis for comparison and it is not possible to describe the effects which import restrictions have had upon the volume and pattern which its import trade would have had in the absence of difficulties in the balance of payments. However, it is easy to prove that, within the available means, the Nlihar'ands Government has made a maximum of trade possible, because imports were not balanced by exports only, but, for very substantial sums, by credits; moreover, the process of negotiating bilateral trade agreements, regulating trade by quota on both sides makes it possible to export non-essential goods on a reciprocal basis, the result of the process being a rather well-balanced optimal exchange of products, both essential and non-essential, which the parties are willing to supply and receive on both sides, GATT/CP/62 page 128

NETHERLANDS (continued) Development of the Imports of some Important Products for 19389 1917 and 1948, according to the principal countries of orgin -_,

1,000_ tonss value 1948 1938 41917 1948 fl.1,,002000 Maize o S. N..imera 192 137 S. icAmeri 310 145 20 Alffri 60 Eahsstern urope 25 3 Othwherountries 20 70 oa-beanss 22 22 51 c'S. Ameria 2 22 14. .Afric 74 17 OOther. countries 1 1 2 rangeso 15 U.S.A. 15 Brazil 17 Palestino 35 8 Spain 1 34 0ther countries 5 2 3 Cotton -yarns Total 14.7 31 U.S.A. 1.1 0.2 Belgium 6.6 3 ,0 3.9 Gr. Britain 4.8 0.5 120.4 Italy 0.7 0. 4 Switzerland 0.1 0.2. O..7 Czochosloakia 2,0 Other countries 31.2 0 7 Wool (on the 8.4 71 71 'basis of 21.5 15.0 scoured wol1) S, America 2.1 7 0 4.0 Austral. and Africa 0.8 6.8 5. 5' Gr. Britain 1.9 4.0 2. O 0ther countries 3.6 3..73.7 3.5 Tobacco Total 29.6 33.5 16.045 U.S.A 8.7 26.5 ; I C. and S. Amecrica 5.O 5.4 Africa o.6 S.E. Europe 0.8 Indonesia 11.0 0,2 1,9 Other countries 1.5 03 -1. 0 GATT/CP/62 page 129 (continued)NETHERLANDS fl.193819471,000,000of1948 value1948 fl.1,000,000. Total 1720 174 174- textile U.S.A. and Canada 7 30 5. Bolgium 35 20 .39 Germany 100 3 16 France 30 23 34 Gr. Britain 5O 25 21 Italy 20 25 12 Switzerland 8 11 13 Czechoslovakia 15 19 Other countries 15 15 Mechanical Total 74 . U.S.A. and Canada 0 6 1 woodpulp Belgium: 5 Finland 8 Germany 1 Norway 15 19 23 Sweden 20 33 Other countries 1 1 1 Paperand Total7 '93. 93 U.S.A. and Canada 120 11 4 Belgium 11 18 12 Finland 5 11 17 Gr. Britain 11 6 6 Norway 1 6 16 Swoedeon 15 27 21 Other countries 24 25 17 Germany 49 0 0 Wood and TotZa.' 360 314 314 od-Uoduc ts U. S,Ai and Canada 18 75 31 Other countries western hemisphere 5. 15 7 Belgium 23 25 14 Finland 53 30 53 France and Fr.Africa 12 10 Russia and Poland 150 Czechoslovakia 15 28 Yugoslavia 8 5 33 Germany 20 29 Sweden 30 65 60 Other countries 38 36 33 ChenrPrcs ct) 185 200 200 ad tr U.S.A. and Canada 13 42 42 Belgium 24 36 10 eta) Germany 60 9 France and Col. 25 25 Gr. Britain 12 2316 29 Switzerland 8 10 19 Other countries 43 39 36 GATT/CP/62 page 130

NETHERLANDS (continued)

fl.1,000,000. - of 1948 value 1948

220 310 incl. steelproductstubes U.S.A. and Canada 19 62 58 Belgium 63 100 175 Germany 9o 1 24 France 13 10 8 Czechoslovakia 11 10 7 Sweden S 3 3 Other countries 8 9 12 Gr. Britain 11 20 23 Machines, Total 328 U.S.A. 35 63 76 electrical Belgium 35 72 92 Germany 203 24 similar France 16 19 22 articles Gr. Britain 62 77 109 Czechoslovakia 8 16 16 Sweden 12 22 27 Switzerland 20 32 Other countries 24 23 32 1,958

The above list covers 1,958mln. guilders, i.e. 40 percent of the total imports, which amount to 4,919 min. guilders. GATT/CP/62 page 131 NETHERLANDS II. Import control for balance of payments purposes was introduced in New Zealand in December, 1938, at a time when, through various causes, overseas funds declined to a dangerously low level, which called for immediate corrective action by the Govern:;.lent. In conjunction with import controls steps were taken simultaneously to control through the Reserve Bank all remittances of funds overseas and to bring under the control of the Reserve Bank overseas funds accruing from exports from New Zealand. Circumstances have necessitated maintenance of such controls. Under the Import Control Regulations, 1938, which came into force on 7 December, 1938, the importation into New Zealand of any goods is prohibited, except pursuant to alicence or toan exemption granted by the Minister of Customs. Exemptions from the requirement of a licence have been created in respect of imports by the Government and of certain classes of import - e.g. passengers' baggage and effects, for which no remittance of funds is required. Application for an import licence is required to be made in a prescribed form setting out a description of the goods, the country of origin, the c.i.f. value in New Zealand currency and particulars as to the manner of payment. A licence when issued authorises the person or firm mentioned therein to import from the country or countries mentioned thereon goods, as specified, to the value stated, within the period of validity of the licence. An extra copy of the licence, known as a bank copy, is supplied for the purpose of enabling the importer to apply through his trading bank to the Reserve Bank for authority to remit funds overseas in payment for the goods. With the exception of licenses granted for imports front Canada and the United States, which cover six-monthly periods, licences are granted for the full calendar year and are valid also for imports up to the end of February in the following year. Thus, licences granted for the 1950 period may be utilised for imports up to 28 February 1951. The object in extending for two months the period of validity of the licence is to allow for delays in shipping and to avoid congestion in shipping at the end of the year. The purpose in arranging the shorter period for licances for imports from Canada and the United States, which has only been introduced in respect of imports in 1950, is to enable closer control to be exercised over the expenditure of dollars on imports from those sources. For the purpose of import licensing, goods aro classified according to itens shown in the Customs tariff, or portions of items. Before the commencement of each licensing period,, estimate is made of the amountof overseas funds which it is anticipated will be received duringthe licensing period. The difficulty in formulating such estimates will be appreciated when it is understood that, with the exception of certain invisibles, such income is derived almost entirely from tho export of products of primary industries which are subject to market and seasonal conditions, After allowing for invisibles, pageGATT/CP/62 132

including debt servicing travellers expenses, dividends, etc. and payment for imports by the Government, the balance is available for licensed imports. The amount thus available for licensed imports has been much less than the amount necessary to provide for all. import requirements and it has, accordingly, been necessary to regulate imports on a selective basis The general policy is to provide, firstly, for most essential needs such as essential foodstuffs, drugs and chemicals and materials for primary and secondary industries In the light of such circumstances, it has also been necessary to exclude or limit imports of goods of a class the requirements Of which could be supplied satisfactorily by domestic producers or which are in a less-essential or non-essential category. With a view not only to ease of administration but also to assisting importers by making them aware immediately of the extent to which they may obtain licenses for the importation of particular classes of goods, It has been the practice wherever possible to fix basic allocations for licenses. Such basic allocatiorns are indicated in The licensing schedule as a percentage of the amounts for which licences were granted to a particular importer for imports of similar goods from the same source in the basic which is generally the previous yearn Where basic allocationsperiod, are provided the amounts for which licenses might, be grancedimportsfor fromsPforn the same source or from other sources are not necessarily limited to the basic elol tions. Thus, the fact that a basic allocation may be provr imports i.:nmor from the Unit-d Kingdom only does not prehluge tne Oranting of .icences for imports from other countries,. In respectt of a large number of items, such as industrial machiney' where conditions governing supply and demand are subject to variation, it is not possible to. fix basic allocations and all applications for licenses are considered on their merits, Since the United Kingdcm has been the principal and a regular source of supply for most goods imported into New Zealand, it has been possible in many cases to arrange basic allocations for imports from that country. In other cases basic allocations apply to the United Kingdom and other British countries, except Canada, In certain cases the basic allocations are applicable to all countries, with the exception of certain "harncyurrefic" countries in relation to sterling. This is clearly set ouy in tii' notes to the licensing schedule for 1950, With respect to imports from "hard currency" areas, rppli- cations are considered on their merits, having regard to essentiality, availability from other sources and any other factors which might justify the granting of licenses. With regard to licences for imports fromsurrencyi:.'ren" areas it has been the policy to consider requests for the transfer of a licence for imports from. one country to another country and advantage of this provision has been taken in many cases. Token imports from the United Kingdom to the extent of 20 ner cent, of the value of the goods supplied by particular manufacturers in 1938 were provided fo49in 191÷ in respect of a numbem of conmoditiehichr wrh.c no other provision was made for imports. This procedure is being continued in the 1950 period, GATT/CP/62 page 133 NETHERLANDS(continued)

Any deviation from the rule of non-discrimination is pursuant to Article XIV (1)(c) Importations through State Trading operations for other than Governmental use are confined to a few commodities, including principally wheat, fresh fruits and tea and sources of supply are determined by commercial considerations. Pur- chases of wheat are in accordance with the international wheat agreement, supplies being obtained from Australia, which is a regular and favourable source, having regard to currency and shipping considerations. For similar reasons citrus fruits are purchased principally from Australia, which has always been the main source of supply, Tea is purchased in Ceylon and India under ordinary market conditions,(O). III. Apart from the provision for token imports from the United Kingdom, no change in the general system of import licensing has been introduced since 1st January, 1948. A new Government has recently assumed office and it is expected that an early opportunity, will be taken to make a general review of the position.

(1) The following supplementary statement has been received from the Government of New Zealand: "In making any decisions involving commitment of foreign exchange, the Government and any state trading authorities must necessarily have regard to the overall balance of payments situation of New Zealand. In practice, however, the commodities imported by state trading authorities are regarded as being of such a degree of essentiality that no reduction in total imports has been imposed for overall balance of payments reasons." GATT/CP/ 62 page134

NEW ZEALAND(continued)

IV. Attached hereto is a list of items showing particulars of imports of' goods from. various countries and basic allocations or other provision for the granting of import licenses. The extent to which licences may be granted for imports from a particular country is dependent to sone degree on applications received and this, in turn, is governed to some extent by availability of supplies, which are sufficiently competi- tive as to quality and price to attract buyers;* V. There is some evidence that New Zealand's export trade is affected,though not to any significant extent by import restrictions imposed by other countries, but there is no reason to believe that such restrictions are discriminatory, GATT/CP/62 page135 NEW ZEALAND(continuedd)

STATEMENT SHOWING PARTICULARS OF THE VALUE OF IMPORTS INTO NEW ZEALAND OF CERTAIN COMMODITIES DURING THE CALENDAR YEARS 1938 AND 1948, ALSO THE BASIS FOR THE GRANTING OF LICENCES FOR IWORTS ~~.IN1949AND 1950.11

The key to allocations is as follows:- -Items marked "A"l -Basic allocations for imports. from United Kingdom and Crown Colonies only to the percentage shown of value of licenses granted for imports from the same source in the period

indicated. I Items ma"ke" 'AAj Basic allocations for imports from United Kingdom, Crown Colonies, and other British countrieceps, ext Canada to thcentagehtlag shown of value bf licences granted for imports from the same source in the period indicated. Items marked "BB" Basic allocations for imports from all sources, exceanada, d3a.E. SElgium andxk an erland, anyand Japan, , 100 per cent. of the value of licences granted for imports from the same source in, the period indicated, Items marked "C" Items regarded. as "Control", rfr which applications are considered individually in relation to actual requirements.

Tariff Item and Country 1938 91o Allocations Items of Origin: £(N.Z) ,(:Z) !1947- 1950i"-'1950 4(2) Wheat: Ausarali 766310II 1,977A,(38 government Government Canada 37,283 - impsrtatiortationsAhUt'o' TOTAL: 803,593 1,977,638 1

_ I 23 Tea: Ceylon 796,630 2,261,755 I India 15,959 355.9123 Other British 1 Government I Governments Total British importations I importations Origin 812,589 2, 616.,879 I U.S.A. I Otler Forei= 33355 11921 Total F; reign Origin i 3)35S 1,924!

TOTA,5 2l5 J44 i,618,803 GATT/CP/62 page 136 ZAND (continued)

Tariff Item and Country 1938 1948 - - Allocations_w. Item: of Origin: £(N.Z) £(N.Z) 1949 1950 1 -I 35(3) Canned Fish: United Kingdom 38,385 74,399 A.100% 1948 AA.75% 1949 Canada 125,915 85,259 Licenses .-Licences Union of South .available available Africa 42,005 for Imports for imports Australia 54 178, ,from . .-from Other British 53 135 Norway, Norway, Total British -1;. _ -- a I Origin 164,407 201,9762 Denmark Dewiark Norway .. 30,635 129,509 I Portugal 546 1 35,711 I U.S.S.R. 13v11-1 I Japan 12,710 - I U.S.A. 7,930 i 76,544 I Other Foreign 4,091 7,901 I Total Foreign I Origin 69,025 249,665 . I. TOTAL: 2330.432, 451,643.

-II t A I 36(2) Raisins & Sultanas: I Union of South Africa 37,501 Australia 221,580 I' 432,509 Australia Allocation U.S.A. 31,375 i 4,543 75% 1948 deferred otherr Foreign 41 i pending Total Foreign Origin 31,416 4,543 receipt of information as to supplies I...... TOTAL: ! 252,996 437,7052 I_ - _~~~~~ Canned Fruit: a United Kingiom 439 3 Pineppples- Pineapples - Malaya 55; 155 4 applications AA.1949.. Union of South Africa 63 36,195 to import Peaches, Canada 4,135 -. from Aus- apricots, Australia 143,201 203,491 tralia and pears - Fiji 601 13;055 other ofto Australia

Other British 257 12 currency 125% 1949, Total British Origin 203,851 252,800 sources British U.S.A. 11,7O8 ' 42 considered 'South Other Foreign 2,172 91 on Africa Total Foreign Origin 13 880 233 evidence 100% 1949. of avail- ;. ability. Peacbes, apricots & " pears I I Australia 100% of I II 1948 II Licences , .. TOTAL: 1217,731 252,933 GATT/CP/62 NEW ZEALAND (continued) Page 137

-- Tariff1 Item and Country 1938 i 1948 Allocations b t-I II Item: of Origin: I t|u--w £(NZ) £(N.Z) 1949 1950 II 70 Raw sugar: United Kingdom 49 C. C. Australia r- 20 820,541 Fiji 10,605 2,051,434 Other British 185 Total British Origin 10,859 2,871,975 Netherlands East Indies 61,461 Cuba 56,836 Other Foreign 11 Total Foreign Origin 5..518,308 TOTAL: 529.167 2, 871, 975

I.- - .- - --. 74 Cigarettes exceeding in weight 2lb. Rer 1.000: |United Kingdom 20,157 30,771 Licences ! No ICanada 7,767 granted allocation. Other British 11 2 on Total British (Origin 20, 168 38,540 evidence U.S.A. 113 11 1of Other Foreign 222 _ , availabil- Total Foreign COrigin 335 11 !ity TOTAL: 20,503 38,551 S 75 Cigarettes,n.e.i. United Kingdom 418,765 283,905 Licences No Canada 60,,747 granted on allocation. IX I Australia 247 19 evidence. I Other British 266 1 of Total British Origin 419,278 344,672 i availabil.- U.S. As 22,434 341 ity Other Foreign 893 5 Total Foreign Origin 23,327 346 TOTAL: 442,,605 1345,018

_W_ 81(2) T Tobacco unmanufactured: won~~~~~~ro !~~~~~ U.S.A. U.S.A. 320,219 831,310c. c. Other Foreign 532 6,457 _ _I 5.1 5. ._ .... TOTAL: 320,751 ! 837.,767l1 _ _*__ . __-* GATT/CP/ 62 Page 138 rD (continued)

r __ Tariff Item and Coi1: 1938 1948 SA1oationip - -- Item: of Origin £(N.Z) f,(N.Z) i_ 194; I950 _____ I _ . -_ 84 Spirits: L 1.~~~~~~~~~~~~~~~ United Kingdom 491, 553 *349,088 BB 1947 BE' .949 Canada II 1,273 2,572 Austrai a 5,656 163,780 i Other British 10.,481 27,761 ' Total British 508,963 543,201 France 49,356' 44,334 .Netherlands 35,595 19,853 :U.S.A. 94 Other Foreign 2,251. 5,972 Total Foreign l 87,202 70,253 TOTAL: 596, 165 613, 454 ! 90 Wines: i United Kingdom 2.2;275 6,O58 iIBB 1947 BB 1949 I__,___--i Australia 53, 484 88,352 Other British 8;644 14,465 II Total British 745403 108,;875 France 14; 836 16,320' Spain 17,201 5,4050 U.S.A. 31 4. Other Foreign 8;,444 3,3531 Total Foreign 40,5312 24,927 TOTAL: 114, 915 233,802 --I---~~~~~~~~~~~~~~~~~~~~-- Sulphur: United Kingdom 3,415 1,762 C C Australia 103 81 Other British 2 Total Brititsh 3,520 Italy 18, 637 Japan U.S.A 1.96,034 419,953 I. Other Foreign 188 Total Foreign 401 264, _. II 419,95.3 i. TOTAL: '267,921 421,7914 159 Florecoverings: .1 Linoleums and similar floor coverings United Kingdom 176, 585 733,111 A 100% A.100% Canada 18,772 1947 1949 Australia 3,061 23' Total British 185.086 752,120 Portugal U.S.A 31,990 Othe: Foreign 555 79 Total Foreign 9,192 35,156 .--I. Total 194,278 787,276' GATT/CP/62 NEW ZEALAND(continued) pageo 139

Tariff Item and Country 1938 1948 _ Allocations Item: of Origin: £(NZ) ;(N.Z ) 1949

Carpets, mats and floor coverings,n,e,i.- **i United Kingdom 413,715 1,129,704 A.100% A.100% Hong Kong 226 2,741 1948 .1949 India 19,661 51,695 Other Canada 245 1,965 British and Australia 91375 254 foreign Other British 2 56 50%.: 1938. Total British . 443,245. 1,9186,416 imports. Belgium 35,653 79,099 Czechoslovakia 545 _ France .264' 858 Italy 415 6,076 Netherlands 486 1,753 China 2, 559 1,746 IIran . 1,135 Japan 3,795 _ USA. 2,034 200 Other Foreign 382 149 Total Foreign .47,268 89,881 TOTALM . 490 513 1,276,297 .

180 .lece gods: United Kingdom. ... 61,298 29,,295 A.100% 1948 1948 A. 100% Canada 957 1949 Australia 1l496 India India Other BritilJh . 1,13 75% 1948 loo% Total British 63,764 25,304 1949 Czechoslovakia_~~~~~~~~~1,309 Foreign __.. France 6,813 1,11s .5% 1948 Other Germany 11,452 50% 1948 Hungary 785 Italy 1,285 2,366 Switzerand 2,426 675 (V~ ~ 1,344 725 Japan 34,183 111 U.S.A. 3,183 10 Other Foreign 774 Total Foreign 63,554 5,488483

TOTAL: TOTAL:127,318 30,79230,792 GATT/CP/64 140 page NEWZEALAND (continued)

r-- --,._1 19, TariffI Item and Country ' 930 I1944 -. 'Allocactions Item: of Origin: £(N.Z). ON.2) 1949. . 1950 , _ Artificial silk III 1 United Kingdom. 26,202 3,130,323 A.100% A. 100% Canada 28,296 49,244 1948 1949 Australia 311,435 505 India: India Other British 7 I_ 75% 1948 100% 1949 Total British 307,940 3,180,072 Austria :* '.,. '951 . .. _ Foreign Other Belgium 537 12,670 50% 1948 I NM, 1948 Czechoslovakia 12,.048 I,. -9,547 I 74,916 II France 18,369 I Germany 54,897 * 4,74; I Hungary 9,822 869 II Italy i 3,384 44,931 Netherlands 234 Switzerland 12,253 .20,657 Japan 274,124 199 U.S.A 1.0,558 Other Foreign '50r ! 220 Total Foreign 40M7, 7 j 243,872 -* TOTAL: 715,167 3,423,9,44 4 I 180 Cotton goods: piece 72,320 A. 100% United Kingdom" 987,772 4,560,275 A.100% Eire 2 1,178 1948 1949 India 5 260;1 215,535 India India Canada 12932 200,448 75% 1948 100% 1949 Australia 2,671 1,103 Foreign Other, 50% Other British 61; 17 50% 1948 1948. Total British 1,008,088 4,978,556 Austria 335 2,830 Belgiun 57,702 I1 COeohoslovaki, 1,679 17,270 Gemaan 4,790 Hungazy 101 6,f714 Italy 1,078 4,*507 Netherlands 11,676 24,821- Poland ,8 1,252 Switserlaid 9,969 15,836 Japan 204,225 636 U.S.A. 18,631 383,665 Other Foreign 143 889 Total Foreign 263,635 520,912

TOTAL: 1,272,723 15,499 GATT/CP/ 62 page141 NEWZEALAND (continued)

- - - Tariff; Item and-Country j : Item: ' of- Origin: I V 183(2) -Woollen piece goods other than knitted: United Kingdom. , 739,177739,177 3,235,026 A.100% 1948 A.100% Eire 224 12,,383 1949 Canada 51 6 ! Aul.l00% Australia 1,529 372,984 ! 1949 Other British 3i Total British Origin 740,981 3,620.,402 Belgium 171 ! 91.,621i Czechoslovakia 560 290436 - France 289 20,,612 Italy 733 33,687 Japan 2,785 101 ! Other Foreign .2,451 1,496 Tota-. Foreign Origin 7,140 176,860 TOTALs 748,121 3,797,262

- 1,i2 Cotton ,arns, [ United Kingdom -44.,096 661:633 AA.100% AA.100% 26 1948 1948 Canada I Australia 459 - i Other British 250 - Total British Origin 44, 805 661,659 Belgium IIt@-- 7,255 U.S.A. 19,439 Other Foreign I 736 1,053 Total Foreign Origin III 736 ------4-~~~~~~~~~~--27,747 TOTAL: 45,541 I 689,406 ! GATT/CP/ 62 page 142 NEWZEALAND (continued)

------.I I -- .. I Tariff ,I. Item and Country 1938 1948 ! Allocations Item. .II I of' Origin: .(NoZ) £(N Z) 1949 1950 -

t-- * 192 Silk yarns: II United Kingdom 1,056 I 71 ,AA 100% I AA.100% Australia 73626S2 76,256 1948 I 1948 Total- - British Origin4 * 718 "1 327- K - -- 11. - I- -1. 14 al British Origina.74,718 76,3274( 483 1,923 i .A.xS II . 4, 427 i ethcr Foreign 83 46 i Total Foxreign C)rigin . 566 6, 6396 I TOTAL: 75,284 1 82,723 ----F-

_ _ __ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~i_ 192 tificial slsilk

ited. Kingdom 16,686 165,152 ilAe 100% I IAA. 100S91 3,299 14 013 1948 1948 -w---Total British--Origin 19;985 179,165 Netherlands 6,406 8;779 I1 .S DA.t 73 8,736 her 1x Foreign 1,942 1 ,3S 526 . tal a Foreign Origin 8,421 21,O41 II _ __ TOTAL: 28,406 200, 206 I- 1-1- . _~~~~~~~~~~~~~~~~_ 193 ollenyarns:v ited Kingdom I !~~~~~~~~~~~~~~~~~~135,991 854, 497 A. 100% A.100% !Oanada )riOin~~~~~~~~~~~~~~~~ 3 1948 1948 stralia: 26,093 319,991 OtheB itishie 5 Total British 491,597 1,174; 496 rancee 29,940 2 10, 555 .S.A.S 17 ther e Foreign 11 2,853 otal Foreign Ori )riOin 23 43,355

TOTAL: .162,107 :1,217,851 GATT/CP/ 62 NEW ZEALAND(continued) page 143

Tariff Item and Country 1938 1948 Allocations: Item: -of Origin £(NZ) 1949 1950

213 ,Cement: .United Kingdom 14,541 36,641 C. C. Canada 451 - Australia 10 148 Total British origin 15 002 36,789 UeS&AO 293 28 Other Foreign 66 187 Total Foreign origin 359 215 Total: 15,361 37,004

219 Glss, common window: United Kingdom 16,672 183,677 BB 1948 BB 1948 Australia 53 62 Total British Origin 16,725 183,739 Belgium 14,525 63g903 Czechoslovakia 1,407 Other Foreign 1,267 Total Foreign Origin 17,199 63,903 Total: 33,924 247,642

219 Glass, plate: United Kingdom 37,427 151,609 BB 1948 BB 1948 Canada 1,003 _ Total British Origin . 3,8430 151,609 Belgium 22 237 24,730 Czechoslpyakia 5,427 49 U.SAb 6,115 1,967 Other Foreign 2,497 Total Foreign Origin 36,266 26,746 Total: 74,696 178,355 GATT/CP/62 page 144 NEWZEALAND(continued)

Tariff Item and Country 1938 1948 Item: of Origin £(NZ) Z(NZ) CllloCations: 1949 1950 300(2)(d) Printing Paper, newsprint: United Kingdom 108,758 96 A.100% AA. 100% Canada 416,358 770,196 1948 1948 New Foundland - 15,412 Australia _ 495 Total British Origin 525,116 786,199 Finland 1,030 134 U.S.A,. 3,399 Other Foreign 1,209 110 Total Foreign Origin 2,239 3,643 Total: 527,355 789,842

301(2) PrintedBooks; 829 United Kingdom 473,828 865,23 BB 1948 BB 1949 Canada 29,877 8,408 Australia 138,745 369,443 Other British 336 1,852 Total British Origin. 6153786 1,245,426 Belgium 1,058 985 France 345 629 Germany 1,576 2 Sweden 637 511 Japan 825 5 U.S.A, 89,874 126,603 Other Foreign 687 1,076 Total Foreign 95 002 129,81::1 Total:710.,788 1,375,237

342 Measuring Appliances n e.i. United Kingdom 102,209 229,885 AA 10% AA l00% Canada 2,919 20,012 1948 1'49 Australia 5,472 38,659 Other British _ 210 Total British Origin 110,600 288,766 Germany 9,659 910 Sweden 708 281 Switzerland 1,685 9,317 U.S.A. 35,687 80,442 Other Foreign 2,003 888 Total Foreign Origin 49,742 91,838 Total: 160,342 380,604 i GATT/CP/62 NEW ZEALAND(continued) page 145

Tariff Item and Country 1938 1948 Allocations Item of Origin £(NZ) £NZ) 1949 1950

348 Tractors and Parts: United Kingdom 53,546 1,676,014 C C Canada 3,276 21,729 Australia 16,343 68,233 Total British 73,165 1,765,976 U.S .A. 699,292 1;192, 916 Other Foreign 33,904 4.33 Total Foreign 733,196 1,193,349

Total: 806 361 2,959,325

352 Industrial Machinery: . United Kingdom 906, 205 2,; 295, 783 C C Canada .32, 004 110,561 Austraia 198, 731 626,353 Other British 179 579 Total. British 1,137,119 3,033,276 U. S ,A, 323 797 863, 770 Sweden 7,705 26 534 Swiftzerland 6,347 37; 545 their Foreign 61,196 36,473 Total Foreign 399, 045 964,322 Total: 1,536,164 35997, 598

354 Artificers' Tools: United Kingdom 171.,220 549,553 AA,100% hA. lO0% Canada 60, 510 14.,019 1948 1949 Australia 12, 028 172;221 Canada Canada Other British 5 and U-S.A, and U.S.A. Total British 243,758 863, 798 50% Jan-June Germany 24,171 5 g 50% 1949 Sweden 7,281 18,7791.8 Japan U.S.A. 82, 848 114,787 Other Foreign 1,107 7, 171 Total Foreign 117, 521 140., 737

- 1 - Total: 361, 279 1, 004, 535,

- GATT/CP/62 page 146 NEW ZEALAND (continued)

Allocations Tariff Item and Country 1938 1948 Item of Origin £(NZ) £(NZ) 1949 1950

356(1) Hardware: not else.. (b) where included and 356(1) Builders hardware (c) United Kingdom 678, 662 1,647,416 AA.100% AA.1O0% Canada 47,762 22,195 1948 1948 Builders Australia 103,620 188,731 Hardware Other British 1,1196 4,566 356 (3) Total British 831,240 1,862,953 France 4,041 1,468 Germany 32,756 12 Sweden 27,164 6,917 Japan 15,422 400 U.S.A. 72,354 47034 Other Foreign 7,409 3,133 Total Foreign 159 146 59,271

Total, 990,586 1,922;2k4

357(4) Iron and Steel: Bar, bolt, rod. United Kingdom 209J791 211,419 C C Canada 69,214 9,950 Australia 483,704 267,989 Total British 762,7O9 489,358 Belgium 629 143,926 Luxembourg 9 16,9167 U.S.,., 1,523 907 Other Foreign 291 - Total Foreign 2,452 161,000

Total: 765,161 650,358

357(6) Iron & Steel: Plate & Sheet under _j in thickness. Unlited Kingdom 663,513 531,959 0 C Canada 16 82 Australia 9,559 224,929 Total British 673,088 756,970 U.S.A, 9,606 23,925 Other Foreign 1,554 850 Total Foreign 11,160 24,775

Total: 684,248 781,745

_ _ _~~~~~~~ GATT/CP/62 147 NEWZEALAND(continued) page

Tariff Item of Country 1938 194 Allocations Item of Origin £(NZ) 1949 1950

357(6) Iron & Steel: Plate and Sheet over " in thickness. United Kingdom 156,261 35,772 C C Australia 75,934 41,119 Total British 232,195 76,891 U.SA. 6,913 11,941 Other Foreign 431 2,418 Total Foreign 7,344 14,359

Total. 239,539 91,250

357(5) Tinplate (a) United Kingdom 369,974 890,133 C C U.S.A. 2,093 479,106

Total: 372,067 1,369,239

357(10) Wire., copper or bronze -United Kingdom 139,293 431,816 C C Canada 363 59,353 Australia 53,366 976 Total British Origin 193,022 492,145 U.S.A. .. 1,375 14,432 Other Foreign 408 823 Total Foreign Origin .1,783 15,255 Total: 194,805 507,400

457(l0) Other metal wire: United Kingdom 236,973 502,864 C C Canada :79,850 9,416 Australia 170,586 97,764 Total British Origin 487,409 610,044 Belgium 772 339,112 Czechoslovakia. - 298,366 Germany 1,886 12,201 Netherlands 199 9,137 Swedenr 101 5,938 U.S.A. 38,662 196,614 Other Foreign 135 218 Total Foreign Origin 41,755 861,586 Total.- 529,164 1,471,630 GATT/CP/62 page 148 NEWZEALAND(continued) Tariff Item- and Country 1938 1948 Allocations Item of Origin £(NZ) £(NZ) 1949 1950

394(6) Crude Petroleum: British Borneo _ 373,039 C C Australia 25 Total British Origin 25 373,039 Arabia 95, 923 Bahrein Islands 2301 782 Iran 62,, 500 781,693 Netherlands East 451.,921 724,490 Indies U.S.A. 70,706119,453 53 Total Foreign Origin 585,127 1,852,341

To:tal ,152585 , 2 ,22538O

389 Motor Vehicles: United Kingdom 3,146, 276 .5,191, 244 Unassembled Unassembled Canada 1,584,523 894,438 vehicles -. vehicles. Australia 362 1, 872 Cars UK UK 100% Total British 4,731,161 6,087, 554 1255 1948. 1949. .A.U I 657,974 347,523 Commercial Germany 28,701 vehicles UK Assembled Other Foreign 10,024 %150 1948, .vehicles Total Foreign 696,699 347,523 Assembled no vehicles no allocation, allocation, -I I -9 Total: 5,427,860 6,435,077

I -=-----I --I-~I- i 389 Parts of motor United Kingdom 192,155 839, 892 BB, 1948 BB. 1949 Canada 33,119 211,428 Australia .031,64 127, 778 Other British 283 Total British 256,338 1179,381 Germany 1,610 U. S A.. 113,082 336,085 Other Foreign 1,959 4,508 TotJ. Foreign 116,651 340,593

,98 Total: ,98922 19,9741j5 icles.veiI __- GATT/CP/62 pageNEW149 ZEALAND(continued)

Tariff Item and Country of 1938 1948 Allocations Item Origin £ (NZ) £(NZ) 1949 1950 394(7) Motor spirits: United Kingdom 6 132 C C British Borneo 689,502 Australia 27 58 Total British Origin 33 689,692 Bahrein Islands 245, 671 l,088,301 Iran 63,412 1,102,927 Indonesia 1,054,437 665,623 U.SA. 527,777 662,858 Other Foreign 9 Total Foreign Origin 1,891,306 3,519,.709

Total: 1,891,339 4, 209,401

434 Manures: United Kingdom 128,893 68,954 C C Seychelles 369734 67,320 Canada _ 34,333 Australia 891 235 Gilbert & Ellice ss 64,646 21,605 Nauru Island 140,647 260,790 Other British 44 30 Total British Origin 371,855 453,267 Belgiun 202$,734 142, 904 France 27,010 56,037 Germny 57,039 - Egypt 11,040 53, 231 Morocco _ 79,353 Tunisia - 94,38 Chile 23,961 43,760 Tuamotu Arch. 554.,123 U.S.A. 38 17,433 Other Foreign 5,649 Total Foreign Origin 327,9471 1,040,979

Total: 699,9326 1,494,246

The values shown above represent the current domestic values in the countries of expert plus ten per cent, expressed in terms of New Zealand currency, GATT/CP/62 page 150

II, The general system of import restrictions in operation in Norway is based upon and governed by Temporary Law concerning import control of the 13th December, 1946. The provisions of this Law are mainly confined to a general ban on. the import of all goods, and do not give detailed rules on the policies and practices to be followed with respect to import regulations. In' connection with the operation of the Law, however, the administrative authorities are authorized to grant dispensation from the ban on imports to a degree which at any time is considered necessary to meet the country's needs and to carry out its foreign trade. Dispensation is granted in the form of ani import licence issued for each shipment of goods. Authorization is given in the Law to the administrative authorities to issue detailed rules and regulations for the practical operation of the Law. The authority responsible for the enforcement of the provisions of the Law is the Ministry of Commerce, which .acts in close cooperation with the Ministry of Foreign Affairs and the Bank of Norway. Regulations governing the import of precious metals and transfer of payments not connected with exchange of goods, such as capital, interests freight, ships' repair costs, travelling expenses, etc. are issued by the Bank of Norway. According to the Foreign Excharige Control Law of the 19th July, 1946, as amended on the 8th July, 1949, payments of all kind. to and from foreign countries shall be made only through Norges Bank (Bank of Norway) or through such other agency as the Ministry of Finance may designate. The licensing policy of the Ministry of Commerce is determined by the total earnings in the various currencies. For some currencies the earnings are generally at a level far below the amount which is deemed necessary to finance a total import which would be desirable. The result is that import restrictions will unavoidably be applied more stringently in respect of some currencies than in respect of others. Such is the case at present with for instance US dollars, Swies and Belgian francs. The amounts available in these currencies are being used preferably for the purchase of goods which play a dominant part in realizing the aims set forth in the annual, National Budget and which are unobtainable in other currency areas. Such deviation from the rule of non-discrimination is considered to be in accordance with the provisions of Article XIV (1) (b) of the GATT. GATT/,CP/62 page 151 NORWAY (continued)

The distribution of import licences among supplying countries is determined mainly by the following factors: .1. The amount available in the various currencies. 2. Prices and qualities. 3. Terms of delivery. 4e Marketability of Norwegian exports. It goes without saying that the reserves and the expected earnings in the various currencies have been an important factor to be considered by the licensing authorities after the war. The Ministry of Commerce has, however, taken due account of such commercial considerations as prices, quality and terms of delivery, thus enabling importers to place as far as pos sible, their orders in countries where the conditions of purchase have been most favourable. In cases where the conditions of purchase have been the same in hard as in soft currency areas, the importers have generally been referred to the latter sources of supply. To some extent the import of relatively low-priority goods has been dependent on the sale .of Norwegian exports of the same category. In order to facilitate the exchange of such goods, bilateral trade agreements have been concluded with a number of countries. For the same purpose certain barter and reciprocity arrangements have been made. III. Since November 1949, the Ministry of Commerce in accordance with the decisions of the Council of the Organization for European Economic Cooperation on liberalization of intra- European trade, has takensteps to free certain commodities from the general import restrictions. For this purpose lists of commodities which are exempt from the import restrictions when imported from certain countries, have been drawn up. The commodities on these lists are still subject to import licenses but such licenses are granted automatically upon application. GATT/CP/ 62 page 152 NORWAY (continued)

Iv. For a number of commodities, particulars showing the supplying countries and the amount of licences issued during the first eleven months of 1949, are given below. Sv~ar Denmark 35,000 to 2796 mill .Kr. Netherlands 625 to 0,5 it It Poland 10,003 t. 9,0 It It Czechoslovakia 37,000 tI 9 34 1Iit Soviet zone 3,9532 t. 2,3 £-sterling 1,0 If it 1,314t. It it 13,192 t . 8,0 100,693 t. 833 mill.ir,

Owing to the low reserves and earnings in US dollars it has been necessary to limit purchases of sugar payable in dollars. Purchases of sugar have otherwise been made in accordance with commercial considerations.

Belgium 11,1 mill.Kr. Denmark lnifoitb Finland 1,4 it it France 22,0 Italy 13,7 it tl Netherlands 10,9 if it Poland 1,8 if ft Spain 1,9 11 itl £-sterling 76,6 Switzerland 12,5 11 11 Sweden 2,2 It It Czechoslovakia 9,7 IJ It Germany, Western zones 4,0 it if It It Germany, Eastern zone 23 It 11 Hungary 0,5 11 It Austria it It if of $ 15,7 179,5 " ft

The import of piece goods in 1939 amounted to 76 7 mill.Kroner. Only such goods which are not obtainable elsewhere, are purchased from the dollar area, As for purchases from other countries, the import licensing is based either on bilateral trade agreements or on barter and reciprocity arrangements. In accordance with the general economic policy of the country the total import of textiles after the war has been restricted. This restriction considered in conjunction with the earnings in the various currencies has brought about a certain change in the distribution of textile imports among sources of supply, compared with the pre-war pattern of import.- GATT/CP/62 page 153

NORWAY (continued)

Iron and Steel Belgium 55.7 mill. Kr. Denmark 05 it it FinlarLd 0.1 " France 25.) Netherlands 3.9 " " £-Sterling 40.0 ,, Switzerland 02 " Sweden 19,0 " Czechoslovakia 8.9 " Germany, Western zones 14, 0 " Austria 0.1,, U.S.A. 128.5 " Poland 5.1 " 301.7 mill. Kr. During most of the time after the war iron and steel have been imported in the maximum quantities available from the various countries. Lately, the import from U.S.A. and Belgium has been somewhat reduced owing to the unfavourable balance of payments situation. This development should also be considered in the light of the steps which have recently been taken pursuant to the plans for liberalization of intra-European trade. Sheet la. U Belgium 1. 2 mill. Kr. France 1.5 " United Kingdom 1.5 " Sweden 0.4" " Czechoslovakia 0.7 " 5.3 mill. Kr. Before the war the bulk of sheet glass was imported from Belgiuvi and Germany. After the war the importers have, generally, been referred to Czechoslovakia France and England for purchases. Owing to the scarcity of B francs it has beer. necessary to cut the import from Belgium.

Netherlands 0.3 mill. Kr. £e-Sterling 70.3 " i U.S. $ 51.9 , 122.5 mill, Kr. Because of the difficulties to obtain benzine and oils from soft-currency areas, the post-war import from the dollar area is relatively higher than before the war. The Netherlands West Indies provided a large share of Norway's import before the war. Imports from that area are paid for in dollars. GATT/CP/ 62 page 154 NORWAY (continued) Coal coke Poland 46,5 mill. Kr. United Kingdom Western Germany 12,6 - I 102,9 mill.Kr. The main part of Norwayts impor before the war was provided by the United Kingdom After the war the import from that area has been considerably reduced owing to the fact that the United Kingdom has not boon able to supply the products. The post-war import from Poland, is based on a bilateral agreement

Denmark. O,9 Finland 0,4 mill.Kr.tt It France 0,70,1 tt U.S.S.R. , t. United Kingdom 3, oit.,17 VIi Switzerland 0,1 t' if Sweden Czechoslovakia 0,20, 'S 1,1 H.. II. 10,9 I! 1 The import from the above countries (except the, dollar area) is, based on bilateral agreements. It is expected that a relaxation of the restrictions on tools would result in increased import front Sweden and Germany. Electricmotors Belgium mill,Kre Denmark 0, 8 I! "l Finland 0,8 Franco 0,8 Italy O; !I 11 United Kingdom 7,0 11 if Sweden II It ; ITI Czechoslovakia 1 1 Germany, W. zones 0,9 I! tt U.S .A. 1,0 It 11 18,0 r.mil,Kr. The import (except from U.S.A.) is based on bilateral agreements, and is sufficient to cover the country s requirements Abolition of tho restrictons on this article would thus not lead to any expansion of the airport volume but would only result i.n changes in the present proportions among the supplying countries. It is expected that Gernanyrs share of the import would increase to 7-8 millKr. GATT/CP/62 page 155

NORWAY (continued)

Belgium, 0.9 mill. Kr. Denmark 1. 9 " " Finland 0.6 " " France 1.3" Italy1.4" Netherlands 0.8 " United Kingdom 0.9 " " Sweden 2.8 " " Czechoslovakia 1.1 " " Western Germany 1.2 " Eastern Germany 0.5 " Hungary 0.7 " " 14.1 mill, Kr.

As in the case of electric motors, the import is based substantially on quotas fixed by bilateral agreements. The amount of goods licensed for import meets fully the country's needs. It is expected that an elimination of the import restrictions would result in changes in the distribution among sources of supply. The import from Germany would probably increase materially,

Denmark 1.4 mill. Kr. Finland 0.1" " France 1.1 " " Italy 0.1 " United Kingdom 3 " Sweden 2 " Czechoslovakia 0.2 " Western Germany 0.6 " " Eastern Germany 0.3 " " U.S.A. 5.6 " 5.3 mill, Kr.

Apart from the import from U.S.A., purchases abroad are made substantially according to bilateral agreements. The import up to now has been kept at a minimum level necessary to the maintenance of the present automobile supply. A relaxation of the restrictions would result in considerable expansion of the import volume (particularly in favour of Germany). GATT/CP/62 page 156 NORWAY (Continued) Thermos bottles Austria 0,4 mill.Kr.

For reasons of balance of payments, the amount of licenses issued for low-priority consumer goods has been kept at a comparatively low level since the end of the ware Import of such goods is permitted only exceptionally as a result of special negotiations with the countries concerned. In the case of thermos bottles, the import has taken place in accordance with a barter arrangement. Sheet glass (except window glass), most types of tools, installation equipment automotive spare parts and electric motors have been put on the free list as of the 1st January 1950.The free list applies to import from the countries which are members of the O.E.E.C., except Belgium, Switzerland and Western Germany.

V. It is not possible to give any definite information as to the effects discriminatory import restrictions have had upon the volume and pattern of the Norwegian export trade. Some countries haves however, taken certain measures which have had an unfavourable bearing upon the export of Norwegian products and show a tendency towards discriminatory treatment. Further investigations are being made as to the character and extent of such measures. GATT/CP/62

PAKISTAN

II. The import control in Pakistan is administered through the 'Import and Export Control Act of 1947' (copy enclosed), A general notification has been issued by Government placing import of almost all the goods into Pakistan on the Control list vide Notification No. 23 I.T.C./43, dated the 1st July 1943, copy enclosed. The goods on which import control is not considered necessary are excluded from the operation of the said Notification by bringing them on to a list of goods for which an Open General Licence (OG.L.) is issued. No licence is required for the import of goods which are on the O.G.L. list. Import of.goods which are not on "O.G.L." is regulated by issue of import licences by Government. For the purposes of this control foreign countries are divided into various categories according to the availability of currency of that country. These categories are :- (i) American Account Area comprising U.S.A. and Dependencies, Canada, New Foundland, Phillipine Islands, Bolivia, Columbia, Costa Rica, Cuba, Dominica, Ecuador, Gautamala, Salvador, Haiti, Honduras, Mexico, Nicaragua, Paraguay, Panama and Venezuela, (ii) Switzerland. (iii) Japan (iv) All other countries except India. (v) India. In regard to the American Account Area licences are freely issued for essential goods. Licensing from Switzerland is regulated by the consideration of availability of Swiss currency to the Sterling area and is limited to the amount of that currency made available to Pakistan out of that area' s pool. Licensing from Japan is done keeping in view the Trade Arrangements reached with that country. All the remaining countries except India are treated as one unit for the purposes of import control. Imports from this area are divided into two categories :- (a). Goods, the import of which is on O.G.L. (b) Goods the import of which is allowed under a licence. GATT/CP/62 page 158 PAKISTAN (continued)

India forms a separate category for the import of goods. Import. of only sixteenitems. is restricted from this country. All other items are imported freely.

Licensing Procedure: For purposes of import licensing the year is usually divided into two shipping periods (i) January to June and (ii) July to December. The general import policy for each period is determined and announced on the eve of that period. The main considerations taken into account in determining the import policy are availabiliby of foreign exchange, comparative need for each type of goods and position of past imports. Applications for import of goods are then called by issue of a Public notice and licenses issued to the extent of ceilings fixed for each item.

Before September 1949. the American Account together with other Hard Currency -areas namely the Belgian Monetary Area, Japan, the Phillipines, the Portuguese Monetary area excluding Portuguese India, the Joint U.S.-U.K. Zone of Germany and Switzerland comprised one sector for purposes of import licensing. From 21st September the countries mentioned under American Account Area in reply to Question No. 2 above were separated into an individual sector for the operation of import control. Switzerland and Japan each comprise a separate import sector from 21st September 1949. The only other changes effected since January 1948 have been widening of the scope of the Open General Licence in two ways namely (i) by making it applicable to a larger number of countries from time to time and (ii) by adding more items to it. The O.G.L. No.IV issued under Notification No. 8(17)-IETC/48, dated 80. 1948 which was initially applicable to the Commonwealth Countries (excepting Canada, Newfoundland, South Africa), British Protectorates and mandated territories was extended to all soft currency countries except South Africa. The following changes were made in so far as items on the O.G.L. were concerned :- (i) On 30th January 1948 more items were added to the Open General vide O.G.L. No.IV Notification 8617)-IETC/48dated 30/1/484t8 y attached.hdf (ii) On April 16, 1948, the scope of O.G.L. No.IV was widened by including another 29 items to the list of items covered by that licence vide Notification.1No44(1+)-IETC/48, dat16.47,7.48. copy ached..-.1 GATT/CP/62 page 159 PAKISTAN (Continued) (iii) With effect from 27th August 1948, O.G.L. No. IV was replaced by O.G.L. No. V which introduced further liberalisation of import policy. copy of Notification No. 31 (12)-IETC/48 ) dated 6.11,48 attached. (iv) On 1st June, 1949, O.G.L, No. VII was issued in super- session of No.V & VI. This O.G.L. did not make any material change in the number of items. Copy of Noti- fication No.335/210 dated 1.6,49. attached. (v) On 21st September, 1949 consequent on devaluation of their currencies by a number of countries O.G.L. No.VII was cancelled and replaced by O.G.L. No. VIII (copy of Notification No 335/210/11, dated 11.10.49, attached), It was issued to enable Pakistan to take stock of the situation created by the devaluation of Sterling and many other currencies until it could see more clearly the effect of the devaluation particularly of the Indian rupee on our external trade. Actually it has no restrictive effect in as much as the value of imports under the existing import policy is not likely to be adversely affected.

IV, (i) The main items which figure prominently in imports of Pakistan are: Machinery and millwork, Drugs and medicines Chemicals, Metals and Ores, Dyeing and Tanning substances Vehicles. Instruments and Apparatus, Paper and board, Rubber manufactures, Oils, Provisions and Jute manufactures. Machinery and Millworks, Drugs and medicines and Chemicals are freely licensable from the American Account Area, Licences in respect of other items are issued on a restricted basis from the American Account Area. The main articles for which licences were issued recently from this area are Metals and Ores, Dyeing and tanning substances instruments and apparatus, vehicles, Paper and Boards and mineral oils. (ii) Licences from Switzerland are issued on a restricted basis due to balance of payments difficult es with that country, The main items of import from that country are clocks, and watuches, instruments and apparatus and cotton embroidered all overs, Imports from Japan are generally confined to the items included in the Trade Agreements (copy attached) with that country which mainly are Textiles, Textile and other machinery chemicals, dyes and electrical goods. (iii) From other hard and soft currency countries (excluding India) import of machinery and millwork, Drugs and Chemicals, Metals and Ores, Dyeing and Tanning substance,medicines, motor trucks mineral products, certain Provisions, books and Jute manufactures are on the Open General Licence, Import of the remaining items from these areas are subject to an import licence. GATT/CP/62 page 160

PAKISTAN (Continued)

(iv) Out of the main items mentioned above only import of Textiles and certain vegetable oils is subject to a licence from India. Import of other items is free, Progressive statistics of the import of goods referred to in this item appear on the following pages. Separate statistics of the import of goods to the areas now comprising Pakistan are not available for the period before partition of the subcontinent of India (August 1947). Conditions created after partition were so abnormal that it is difficult to determine the normal sources of imports to Pakistan on the basis of statistics of the last two years.

Exports from Pakistan generaly consist of raw materials which were in short supply in the markets of the world in the period under consideration, Any import restrictions imposed by Pakistan had therefore no direct effect upon the volume of exports from Pakistan. There is, however, evidence to show that restrictions on the import of certain goods like sports goods and surgical instruments in some countries affected adversely the export of these commodities from Pakistan, GATT/CP/62 page 161 PAKISTAN (continued) VALUE OF PRINCIPAL ARTIClES IMPORTED BY SEA INTO PAKISTAN DURING THE PERIOD1STAPRIL1948 TO 31ST MARCH AND 1ST APRIL 1949 TO30TH SEPTEMBER 19494 1. Chemical and Chemical Peparaations (IN Rs.)

1st April J948 to 1st April 1949 to 31st March 1949 30th Sept. 1949

Belgiur 1,22. , ,- 46, Brazil 5H Canada 1,669987 1,91,226 France 6,089254 2 121482, Indian Union 19,90,249 9 09,522, Italy 51,15.702 13966997, Poland 36,li4 Netherlands 79 354 A8S7398 Norway 79 683 1930,8,4 Sweden 26,C33 65,517 Switzerland 20,070 Straits Settlements 21,3110 1,020 United Kingdom 1,10, 65,920 51,42,315 United States of America 18,83,198 11,774737 All other countries 1,69;770 42, 740 TOTAL 2 ugsan2. Drugsandcines:

Australia 13,681 61,662 Canada 80,264 6316,8 France 2,84,583 1,9t994, India 36,96,898 9,90,140 Italy 997837 3 28,160 Malaya British 3,751 77,o65 Netherlands 1,9,186 20,923 Switzerland 9,68,245 159079,23, Straits Settlements 55 902 18,717 United Kingdom 1,27 80 J,1 71988,653 United States of America 18 06 4,4 14,36,101 All other countries 1,36,170 4,21983, TOTAL _-2.2,00,34 _1.1,23,09, 3. Dfyeing Tannin g Substan Argentina 1,54991 Belgiun 52,351 Burma 32,003 21,990 British East Africa 30,068 1,68,531 India 53,51,462 28,36,628 Italy 5, 03,683 1,15,613 Swedon 2,63,274 Switzerland It4,412, 472 13,08,662 United Kingdom 16,86,638 3293,733 united States of America 8,2015T7 28,63,711 All other countries 94069!)b' 2,18,996 TOTAL ,874 r l,,2552 2~- GATT/CP/62 page 162 PAKISTAN (continued) 4.Instruments t a-e.

lst April 1948 to 1st April 1949 to 31st March 1949 30t.,Sept, 1949 Australia 5,70,56 3,23,837 meolg'. 15,225 537083s Canada 1,49,357 2,13,74 China 9734,780 ,736i94 Czechoslovakia 59,908 848 Denmark 29,711 3,478 France 1,90,010 1,10,511 yerr.2a 2 h949 20,276 Hongkong 74,108 1,88,299 India 27982,126 10,50,179 Italy 48,231 1,50,179 Japan 2,258 1,33,210 Netherlands 4,38;500 2,46,526 Straits mettlerints 1,17,560 1,08,410 Sweden 90 725 22,200 Switzerland 80,235 1,23,893 United Kingdom 4,2128)+227 64,65,844 United States of America 28,66,728 23,88,597 All other countries 25,587 1,4,286 TOTAL

5. Machinery & Millwork (excluding Belting) Australia 1,33,870 3, 24,682 Belgium 9,515 3,59,470 Canada 9,86,430 1,43,634 Czechoslovakia 3,00,801 10,77,947 Denmark 36,024 1,44,232 Germany 12,106 1,03,431 India 14,87,932 11,35,620 Italy 70,180 5,82,250 Japan 20 26,18,211 Netherlands 17,389 1,80,125 Sweden 2,35,075 Switzerland 8,20,0051,58,379 1,22,512 United Kingdom 3,87,36,989 2,35,88,664 United States of America 1,36,70,733 1,38,93,714 All other countries 3,26,687 1,20,873 TOTAL 6. Metals Ores&

Belgium 50,8,498 46,33,438 Canada 1,47, 152 95,051 Ceylon 4,28,920 3,31,891 Czechoslovakia 1,07,799 France 1,63,083 2,73,094 Germany 24, 100 India 47 55,741. 52,15,248 Italy 2,77,409 10,52,433 GATT/CP/62 page 163 PAKISTAN (continued) Metalsand Ores (continued) 1st April 1948 to 1st April 1949 to 31st March 1949 30th Sept. 1949 Netherlands 78,774 2,21,248 Sweden 55,225 1 53,253 Straits Settlements 3,53,23 15,50,338 Thailand 74,478 United Kingdom 1,79,53,021 1,22,25,047 All other countries 2,54,252 5,17,590 United States of America 44,77 077 34,68,493 TOTAL 3,42,32,082 2,98,63,437

7. Oils Minerals

BahreinCeylon 81,561 9,50,99113,204 India 23,92,3811,71,131 2,962 Iran 1,88,60,292 95,91,830 Malaya British 5,67,313 90,523 United Kingdom 22,47,534 10,93,17171 iThted States ofmArerica ,7;,04115 ,74,49186 All other countries ,99965 ,69369 TOTAL 2,80,30

8 Ois? Ve aae Non-essls,Vegt Ceylon 77,00,315 34,58,377 France 599734 India 95'70,622 1,,10,994 Malaya British :lg2,4659 12,4,8,965 Portuguese East Africa 5',335 Straits Settlelents 47m,82,942 3 58,775 All other countries 159587 45,399 TOTAL . 2 ,33,99,460

9. Paints & Paintqrs-Materials Belgiu 5,792 7,657 Canada 1 2030 29,090 India 18 42 I55 10,77,130 Italy 3,152 4, 021 Japan

Netherlands 1 %, 652 91,009 United Kingdon 19,91,127 20,86,841 United States of America 1'214 559 2,11e054 All other countries 52,032 TOTAL 35s GATT/CP/62 page 164 PAKISTAN (continued) 10. Paper & Paste Board (excluding stationery) 1st April 1948 to 1st April 1949 to 31st March 1949 30th Sept. 1949 Australia 77, 612 Austria 4,17,819 2,33,116 Canada 20,40,810 7,05,177 China 7,01,772 ;22°47 Czechoslovakia 5,98,479 1997,257 Finland 4+07,126 France 1,17,440 1705,025 Hongkong 81,125 India 14 80 , 939 1,629162 Italy 2 89,695 Netherlands 2,69,842 9,37,903 Newfoundland 81,921 Norway 36,50,593 17,26,176 Soviet Union Sweden 47,505 2091+9293 United Kingdom 16,90i803 United States of America All other countries 1,55,956 ,49954 TOTAL ?., 4. 1,3243 11.Provisions & Oilma Australia 19,46,385 199989575 Canada 2,757223 93,772 China 76,526 1410,799 Donrark 1,96,068 5,25,150 France 17,017,163 37 58957 Hongkong 35,535 11,389 India 71,357721 20239836 Kenya Colony 1,22,393 22,028 Malaya British 1,25,679 Netherlands 12,12,16612v392661 New Zealand 2728;348 7,029313 Straits Settlerents 109497936 19859074 Switzerland 17,511 37,536 United Kingdon 42,819651 39,78,070 United States of America 97189276 3,65,227 All other countries 3,78,067 TOTAL QEQ~Qrj _ 97Z2

., __ - 12, Burna 18,227 9,585 Canada 4,477110 Ceylon 6,51,996 3j6 507 Czechoslovakia 60,155 1,36,551 France 71,583 35,059 Germany 19 562 15,334 India 61U67,61o Italy 8,98,013 6,36,3179973727 Japan 2 38,729 53N95 Straits Settlements P V+10 liF23 United Kingdor 38,1 +375 87, 99039 United States of Auerica 23,11,321 All other countries 107i7,30975,931 _ -1+ TOTAL _eJ 21 79' GATT/CP/62 page 165 PAKISTAN (continued)

13. Textiles Cotton Twist & Yarn

1st April 1948 to 1st April 194+9 to 31st March 1949 30th September1949 Belgium 24,334t 1969,695 Ceylon 2,93,4r63 1,25,256 China , 0,18,9936 21,1f,07675 Egypt ,44,037,37 19 ,41,91984 Hong Kong 7,28,808 India 1,73,,6'407 74,19050'0 Italy 1,33,04,481 3,02,24,743 Japan ,2102,991 34,18,704 Soviet Union ,2;865 Straits Settloments ,84,&8766 United Kingdom: 2,71,,59799 2,,59 5, 35 United States of America ,9915,491 All other countries 37,877 99,97581 TOTAL 11,25,,67871 10,,0974,142

11. Cotton eiegoodscl

Aden & Dependencies 8768,966 4,21,640 Belgium ,5 575 22,690 Brazil 29,59355 519,45,57 China ,.15,,29794 Czechoslovakia 1,06,961 30,15,071 France ,69267 19,3 ,071 Germany ,09,04718 39,178 Hong Kong 26,62,252 5,24,638 India 15,,6?,19327 Iraq 2,272,1,05862,753 Italy 26,,09826 51,89,220 Japan 61,,81783 2,632,7,950 Kuwait 17,?201 30,845 Maskat Territories , 513 2,389,92 Mexico 9,64,49 , 447 Netherlands 72,66,756 299,52,87 Poland 81,277 2,827,80 Saudi Arabia 1,28 ;47 21,612 Soviet Union 53;6,97,2 5,22,92 Straits Settlements 1,88,122 2,422,28 Switzerland 12,87,8+34 United Kingdom t9,74,, 44,13 6,79;,8l,78 United States of America 958,88,18

All other _ _ countries .__. 89,9,131 TOTAL 269,3,14,05 16,20,56,56o0 GATT/CP/62 page 166 PAKISTAN (continued) 15. Woollen & Worsted piecegoods

1st April 1948 to 1st April 1949 to 31st March 1949 30th September 1949

Australia 1,23,999 17,110 Czechoslovakia 96,349 1,43,412 France 20,098 11,512 India 12,23,113 99,621 Italy 6,95,086 1,73,666 Netherlands 1,70,949 15,435 Switzerland 29,475 17,140 United Kingdom 62,64,262 29,66,460 United States of America 49,953 E i)130 All other countries 27,873 94,889 TOTAL 87,01,157 35,93,183

16. Artificial Silk Yarn

Indian Union 2,03,427 32,064 Italy 46,60,634 55,21,075 Japan 1,56,653 7 Netherlands 1,496 13,205 United Kingdom 4,78,963 1,21,692 United States of America 14,805 1,821 All other countries 13,850 TOTAL 55,15,978 57,03,714

17. Artificial Silk Piecegoods

China 2,44,535 4,49,003 France 1,28 020 1,28,972 HongKong 1,48,214 22,438 India 2,91,93,043 30,89,227 Italy 15,98,506 22,04,130 Japan 18,075 40, 162 Switzerland 34,587 38,083 United Kingdom 52,76,655 46,57,010 United States of America 5,52,897 95,816 All other countries 76,860 14,653 TOTAL 3,72,71,392 1,07,40,194

18. Jute Manufactures India *b * lndia 2,82,26,083 2,41,46,027 All other countries 50,646 TOTAL 2,82,26,083 2,41,96,673 GATT/CP/62 page 167 PAKISTAN (continued) 19. Vehicles

1st April 1948 to 1st April 1949 to 31st March 1949 30th September 1949 Aden & Dependencies 3,30,426 27,683 Australia 8,26,145 2,14,567 Bahrein 3,03,299 81,265 Burma 15,942 97,037 Canada 13,49,965 30,88,654 Ceylon 1,12,860 29,242 Czechoslovakia 32,427 3,66,390 Egypt 83,298 14,483 France 92,317 1,48,467 India 32,34,084 3,27,107 Italy 1,40,283 7,26,711 Netherlands 2,17,722 1,57,891 Saudi Arabia 2,50,191 74,560 Straits Settlements 1,89,780 2,21,005 United Kingdom 2,79,08,403 1,54,03,939 United States of America 117,99,844 1,48,09,652 All other countries 3,30,792 2,39,186 TOTAL 4,72,17,778 3,60,27,839 GATT/CP/62 page 168 SOUTHERN RHODESIA

II. .& Southern Rhodesiats payments on international account are III. finally bottled through London and the information provided by the United Kingdom in respect of payment arrangements in answering this questionnaire should be considered as applicable to Southern Rhodesia as well. Generally speaking Southern Rhodesia limits the value of its importations to the availabilities of the currencies concerned, This was and still remains this foundation of the control and is emphasised in the various regulations No description would be complete without the history of the action taken and it is felt that it would be better to embody the answer to Question 3 in the answer to this question. (1) On the 19th September 1947 the Import Control Regu- lations, 1947 were published in Government Notice No, 757. These Regulations, generally known as "Dollar Control", placed upon a "Specified List" the following countries from which imports would be allowed only under permit: The USA the Philippine Islands, and any territory under the sovereignty of the United States of America; Bolivia Chile Colombia Costa Rica - Cuba Dominican Republic Ecuador Guatemala Haiti Honduras Mexico Nicaragua Panama Peru Salvador and Venezuela Canada Newfoundland. Section 4 of these Regulations reads as follows: "The Minister of Commerce and Industries may authorise the Secretary Department of Commerce and Industries; to issue a permit in writing for the import of: (a) goods which are the product or manufacture of a specified country; or (b) any motor vechile which has been subjected to any process of manufacture in any territory other than the territory of a specified country from materials which are the product or manufacture of a specified country; subject to the following conditions; (i) that the goods are in the opinion of the Minister of Commerce and Industries essential to the life of the community; and GATT/CP/62 SOUTHERN RHODESIA (continued) page 169 (ii) that the aggregate value of the goods represented by the permits issued, comprising the cost of the goods, freight, insurance and other charges if payable in the currencies of specified countries, shall not exceed the value of the Colony's earnings of the currencies of the specified countries plus the value of the Colony's domestic gold production". Section 4 (ii) states very clearly the considerations attached to the control. For the purposes of this control the merchant importers wore assembled into groups with identical interests, e.g. Agri- cultural Machinery, Textiles, Motor Vehicles etc. Alloca- tions of dollars were then made to the various groups and the distribution of these dollars amongst the individual members was made by the groups themselves. Once the allocations were agreed the permits were issued and could be used in any of the countries on the "specified list" - the allocation was thus to a group of supplying countries, In conformity with Section 4 (i) a "prohibited" list was issued merely as a guide and not as a schedule of prohibitions which required rigid adherence. Circumstances of particular cases, alternative sources of supply, conditions of delivery and effects on local industry and employment were taken into consideration as well as the availability of the dollar currency (2) On the 7th of April, 1948, by Government Notice No.228 the following countries were added to the list of' "specified countries": Argentina Belgium Luxembourg Belgian Congo and the Mandated territory of Ruanda-Urundi Portugal and the Portuguese Empire Sweden. This extension to "hard-currency" areas was accompanied by a new Section 4 which read as follows: "The Minister of Commerce and Industries may authorise the Secretary, Department of Commerce and Industries, to issue a permit in writing for the import of goods which are the product or manufacture of a specified country, subject to the following conditions: (i) that the goods are in the opinion of the Minister of Commerce and Industries essential to the life of the community; and (ii) that the aggregate value of the goods represented by the permits issued, comprising the cost of the goods, freight, insurance and other charges, shall not exceed in value an amount considered by the Minister of Finance to be detrimental to the financial stability of the Colony in relation to its external balances, GATT/CP/62 page 170 SOUTHERNRHODESIA (continued) In this case again the consideration was set out in Section 4 (ii) and allocations were made to importers in the currencies of particular countries. In this respect the control was varied from the "group of countries" system in dollar control but in all other respects the system was the same. An important exceptionwasmadein the Ci.n thC case of Portuguese East Afhere T'lo-c is an esseneial trado in raw produce of the soially bred:a imals animalbetween tho two territories and a specmial Agreeent dated the 30th1of June .910 has ermeit'terthcnietorchaego of those proeucts freo of customs datics, mSuch iters have continued to move ecross tho Border free feom actionstri.c-ton. in 1948 Southern Rhodesia imported £475,478 froeseortuguso East Africa of which the main e:ems weroe RiCC £ 4,6 W4 6)41 Fcesh Fruit , £33 674 Sugarr.;d£148,341 £3.'37;F Wood £ 06, 220 712 e3) On tho eth of uno, 19e8nmentGovorrmcrn Notice No.368 the feleowidedworc he to tifho list oP "specified countries" and are trea same basis as the "1-asis ash 'Thard currency" areas

Jap er amended Tri-Zonal)lvndudto to T~ra.1 ) Gor.any, (4une, the 13t, of J'.Tno e19489 by Governmont Notice No.463, Brthe list of cd eo '.b,"ccoun.. of.spIpcifid' &colutries, ulgationowinghehc prcm-e~ation of ti. Exchango Control Act, on thee4eh eparar'h,e1949 thosc siparate sots of Regula- tions were repealed and fresh conseleeated Regulations woro issued under this Act. Tho System of allocations as woll as the conditions Zovmrning their issues rerain unaltered, e.cepS in sma(4) espect- e"tionG" i (b) of the 'dollar Import Regulatiocarrelatinmeno motor rers was arioded in tho re-islsue to apply spocifcaly to such cars assembled or pa Unionrocossod in th UnLor. of South Africa. The opportunity waile ken. to remove Ch.leo and Peru from the list of "specified" ioultries. The "prohlbited" list was replaced ibles"ist of "pormi m.iblos and the systen of applications der`goods required -slid special circumstances was retained. (6) Neerestrictlons have bcon placed on goods imported from l investment . iTpi rvr.hnvotnont mainly from the Sterling Arna has set hc y t mo-e thar, off- sot an,;, deficit in pay- montsO (7) As regarmitl^,, rulo of non-discriirnation Southern eroeesiy elcctca toobs govo-nod bv the provisicn. of Annex-f.n JG IV. See following pages, tradert has been s ou- uxT;ortL'; tradc ha.s oon Shown in the reply to s estion 40 At this staf, it i.( not desired to comment further. GATT/CP/ 62 page 171 SOUTHERN RHODESIA(continued)idS) IV. e Tho mosatisfactory method answering this v;1 question woued bo tmmerce onco by quotiercentage Import .:llort and Export trblesthern Rhodesiarn Rhodo!-

PERCENTAGTION TRIBUJTTTI BY VALUE BETWEEN THE 'l2WO A.1EAS in3f urrency Areas Hard CurrencyAreas11hcc AeaC reports f2% 79.4C (£7.M) £ 20 8% (C2 M) Exports to 2.4% M) 9 Qif (£9g 1 7. 6% (£l M) ~~~±.. 197 Imports 6%ont £ 6 34% (£11 M) (Sl1 M) Exports 0% £ 9g, (i10 M) 1O% (£2 M)

1949 (I o ,ha) Import82.5%fr£m 17.5%32 M) 2?E. (£7 N) Exports 87.3%(£22 M) 3','.(;) 22 1217% (£4 M)

PEIBENTOGJBY VALUE 3UTTWEEN.TJ.LUE BErWELE SOME OFRAHIN PR.UNTRIEST-hDTG COtJN2R1E IMPORTSFROM 1939 47 1-i 197 44.7% Kingdomn+ Liv.3% . 313% 45C9% U.S.A. .5% . % . 17, 8" 9*3% Belgiur . % 1 3 h Afn of Sout' !'rica 3.7% 2Dz' 24.6% Canada 4. Ye2% 3.8% Other British (Soft) . % 7687 6.3% Tablmonstrate quite clearly that the learrly t'-athe control on the mmportntion of reechaaeise has rosultod in:. (a) ea reiurn to thordivSsion of ou. imports into the diffo7ent areas en thondirect rolati-iships in which our export goeds aro purchasud, (bre-the normal pirces upply sou--C.\s and destinations of exports haighboon only slui-tly affected, In this connection it is noiod that the An.on of Southlfriea is really thc only as ntry wproportionatea pbt pu)tieatc basis incr(.sed approc-iab. its eeports to Southorn Rhodesia. This is of l urse a ence .l cinseqancc.) oeogrs nitural goo-,aphical advantagenadded to Univercreased (IJN-.Ysity of its industrial activity, (c) the redisequilibrium cli.sequ1:~b:'i ourese trade figx-is in 1947 rssitys the heces,%ty for tHi institution of the rontrol on imp'-ts. As suguest.d iaire, aoistvonno..Jve sur\ey has been mhe of tenal t.mmodities covering more.ias covoCi.-! more than 30% ofnthe total importn a1d this is shown iu the table below, -q(VrU-,iVV 'Punmelr - RHODESIA SOUTHERN GATT/CP/62page /2 Is FQ

* Cotton 1Cf~~~~~~~~1 Oflcoe Goods (1,3 ~HARDJJ4) ~ U 7 14 not 7 HILJD SOT HJWD. soFUf 4% 34ofU~p of 92 SOFTIJILD 9j4 3' m-lport s 3 30~~~~~~ D{S29''!J-___99 - - _2 11 F . 2%, 33% 7% 53c1e7 c 75% %725 Parts N.E;JE 4.5% of (L74,675) 64% 36% 79% 60|42 72 2 1j43 rnh-ports 70 1|| % |30___f -0% 3. Ctor armnts ( 55,2ss,,6 2.5,r of 194W I hport4 -4 16% 71% 29 7|5% 56% I4lports fixiUniln of g* h3.vc risenI'r .4,Q(13)to6700(4) 4.Railway 1itztorials (Li 2'3.424 7%% of 154' Imports 2% 97%40 3% 57% 3t3% = 733 2) | -7% I 11 1 5.Sugar U-hr.,fid (-759;,23) -.'l ---- I (3) -i-. ~ -aport_. 45% 55% 57% 43% 63% 30% 206% 2% 2.7% of 1Ay3 Imports !40% 60%f 60% 40% 46tr 52v% 43% 7. Z.,Lcctric cable & Wire (Z627.,-492) 1.5% of 1948 Imports 99.3% 7 95% 5% 91% 9% 95% 5% 3. MotoCars Passengr) 46% 3.3% of 1943 (~4&~76ot54% 54% 46% 6 34% 3% Imports (B) 206% 72% 14% 60% 35 6% 7% 2%17% 9. X'otor Trucks & Chassis (F11, 599,279 30 2 --- 3.7% of -42% 5% 1943, Imports 62% 7T53% 25% - (B)l%955 138% 95 24 7% 53% 47 4 6% lUUnman& acturiWwoo 6") 5% 7 (*C747,C73) 4%018 0601 1.of194 g-of - orts- Impo -24-8--- ~~~~~~9%t 91 10% 02 GATT/CP/62 page 173 SWEDEN I. In order to safeguard the reserves of foroign funds from being depleted, especially with regard to the currencies of the dollar area Switzerland and certain other countries, a general system of import licenses was introduced on March 14, 19477 A great number of essential commodities, enumerated in a special free list were in the beginning exempt from the import licence system. Owing to a more and morc unffavourable developlment of the balance of payments the Swedish Government was, however, forced to restrict this free list successively, finally arriving at a point where only books, newspapers, stereotypes, ice, timber of domestic pine, fir and aspen, sawn timber of domestic pineand fir, fire-wood and wood pulp were left on the free list. II. The import restrictions are based. upon the above-mentioned general import licensing, systems, which is included in the enclosed notices nos. 89 and 134, issued by the State Trade Commission. The import licensing system: functions as follows: Importation of goods to Sweden may not take place without an import licence, Import licenses for food-stuffs are granted. by the State Food Commission, for fuels by the State Fuel Commission, and for all other products by the State Trade Commission. The possession of an airport licence entities the importer to foreign currency equivalent to the sum due the seller abroad, Import licences are issued within the framework of the quotas in the bilateral trade agreements, and in regard to those countries with which Sweden has no such agreements, within the limits of the Swedish import plan. In drawing up this plan consideration is, to the largest possible extent, taken to traditional imports from different countries, Owing to the present scarcity of certain currencies, it has been unavoidable that the importation of goods to be paid for in such currencies has been directed mainly towards goods of special supply interest. This deviation front the rule of non-discrimination should foll under the stipulations of Article XIV 1(c) as the present import restrictions wore already in force before March 31, 1948. III. The most important changes which have taken place in the import licensing, system since January 1, 1948, are, on the one hand, the final limitation of the free list of February 6, 1948, whereby the import licensing system. covered. almost, and on the other hand the liberalization of imports of November 1 and December 1, 1949, of a certain part of the imports front the countries belonging to the Organization for European Economic Co-operation. It mayfurthermore be mentioned that as from January 1 1950,more than 30 per cent of all imports from O.E.E.C. . countries will be freed, GATT/CP/62 page 174 SWEDEN (continued).

IV. With regard to the licensing policy and other rules applied in the Swedish system of import licences it should be emphasized that a fundamental principle has always boon to give the greatest consideration to the traditional pattern of imports. This is being achieved, i.e.through the allotment of available suns to regular importers within their respective branches. Within the amounts so allotted, the importers have groat freedom of selection between dilfferent articles within their respective branches, which should guarantee that the choice of goods within each special field remains traditional but at the same time gives room for changes called for by the introductionof new raw, Materials and changes of taste etc. As examples of rules and regulations, which are applied in the allotting of such quotas for the importers, the State Trade Commission' s notices nos. 116 and. 122 regarding the importation of textiles are attached. As the consequences of theliberalization of imports mentioned under Question III. cannot at present be more definitely foroseen, a further answer to Question IV should preferably be postponed It mayhowever,be .', be pointed out that the chanmes e market- ::et of supply to another which may be statis icallye noticcable are probably ainlylv due to an increasedreasedcjrens capacity of delivery in the various markets durier diffo-ent- periods,e On thc other hand it may be stated rtaincer+ta.ty,hehat tlh switches of purchases from lard currency countries have resulmed frimport pipor restrictions called foe by tho present currency situation. V. With regard to the effece ofport imlpor t restrictions on Swedents export, trade, there is apparently no doubt that the reduced supply of importmaterials.^atore and mcans of production have caueedea eocroaso ex the ~cport capacity. To this decrease can with certainty be added the tying up of the production capacmeetto rmo0 part of the dodemand,clc.and which normally shoeldeenvc be.edcovcrimportsiriport. The import restrictions introduceddein othor countries have also generducedreuCccoedishSecdert oxpoume,vol..u: especially with regard to the expoanufa m.waanctured goods. Most noticeable in this respecteadifferenties1ich havearisen e isen from these reasonsefor th Swedish traditional exports of products feomechanical hanic^aand paper industries. GATT/CP/62 page 175 SOUTH AFRICA

II, & MEASURES INTRODUCED PRIOR TO DECEMBER. 1949 III The South African Government on 5th November, 1948 decided on the following interim measures in an effort to stop the serious and persistent decline in the country's monetary reserves: (a) the importation from all sources of certain types of articles (mostly luxury and non-essential goods as well as goods produced in sufficient quantities in South Africa) was prohibited except under special permit; and (b) in the case of all other goods, the allocation of non- sterling exchange to South African importers for the period 1st -July,1948, to 30th June 1949 was restricted to 50% of the amount drawn by individual importers during the base year 1947; in instances where it was considered in the interests of the country's economy, additional exchange was made available by way.of supplementary quotas. The prohibition on certain non-essential imports was applied on a completely non-discriminatery basis. The discriminatory exchange restrictions were discussed with, and approved by, the International Monetary Fund. The list of goods classified as prohibited imports was considerably extended on 4th March, 1949, Notwithstanding these measures South Africa's monetary reserves continued to decline to such an extent that the South African Government on 1st July, 1949, found it necessary to replace the original system of non-sterling exchange quotas by a more drastic system of physical control of imports which was applied to imports from all countries. Simultaneously the list of prohibited imports as extended on 4th March 1949, was maintained. The quotasof non-sterling exchange issued under the original system of exchange rationing had, in the majority of cases been exhausted some months before the 30th June, 1949, when the first quota period came to an end, and South African. importers desired to know in advance what amounts of exchange they would have at their disposal during the latter half of 1949 for imports from sterling as well as non-sterling sources so as to enable them to proceed with the placing of orders abroad. In order, therefore, not to bring trade to a standstill after 30th June 1949, estimates were prepared of the amount off sterling and non-sterling exchange which: it was thoughts South africa would be able to spend on imports during the second half of the year and an initial issue of permits made tp an amount equivalent to half of the exchange which was estimated to be available, Two types of permits were granted, namely - GATT/CP/62page 176 SOUTH AFRICA (Continued)

(1) non-sterling permits which originally could be used for imports from non-sterling countries only but which, shortly after the introduction of import control, were made valid also for imports from sterling countries; and (ii) sterling permits which could be used only for imports from sterling sources. Permits were issued only for three categories of goods, namely, capital equipment, spare parts and raw materials for industry. No permits were granted for consumer goods except in very exceptional circumstances where the goads were highly essential for the maintenance of public health and the economy, The initial issue of permits for the half year July to December, 1949, which was confined to raw materials, represented 162/3% in value of imports of raw materials by individual importers from the non-sterling area during the whole of 1948 and 25% in value of their imports of raw materials from sterling sources during the same period, It was estimated that the initial issue of permits on the basis of these percentages would absorb half of each of South .Africa's available sterling and non-sterling resources, i.e. half of £25 million and £30 million respectively, It was hoped that after this initial issue, the South African Government would be able to make a further issue as soon as greater certainty had been obtained about the exchange resources which would actually be available during the latter half of the year. Largely however, as a result of the heavy import requirements of capital goods and spare parts of Govern- ment Departments, public utilities and the gold mines, the South African Government did not find it possible to proceed with such a further issue of import licenses. The Gold Loan to the United Kingdom was. repaid in full on the 13th September 1949, and South Africa could not thereafter continue to offset its favourable balances with certain soft currency countries against its unfavourable balances with hard currency countries. Importers were accordingly informed that - (a) all the unexpended portions of existing non-sterling permits could, if they so desired, be exchanged at the banks for sterling permits; and (b) all sterling permits could be used for imports from "soft" currency countries. For the purposes of this amended scheme "soft currency countries" were defined as all countries other than the United States of America and all territories falling under the sovereignty of the United States, Canada, Belgium, Luxemburg, the Belgian Congo and Ruanda-Urundi Switzerland, Lichtenstein, the Republic of the Philippines, Bolivia, Colombia Costa Rica, Cuba, the Dominican Republic, Equador, Guatemala, Honduras, Mexico, Nicaragua, Panama,El Salvador and Venezuela,Haiti, NEW SCHEME TO BE APPLIED FROM 1ST JANUARY,1950 The Government of the Union of South Africa decided to base their new scheme of import control on a distinction between "hard"and "soft" currency countries and to issue two types of import permits, namely, universal permits and restricted permits, GATT/CP/62 page 177

SOUTHAFRICA (continued)

Universal permits, which will be available for imports from any country, will be issued to an amount equivalent to the estimated current gold production (loss such amounts as may be necessary for the maintenance of satisfactory reserves) plus the earnings of hard currency minus estimated invisible imports from hard currency countries, Restricted permits, which will be available only for imports from soft currency countries, will be issued for an amount equivalent to the estimated soft currency income (less such amounts as may be necessary to build up satisfactory soft currency reserves) minus estimated invisible imports from soft currency countries. Of the soft, currency resources £2,000,000 will be set aside to assist certain war-shattered countries on the Continent of Europe who wore unable to re-establish their pre-war trade connections with South Africa before the introduction of import control. Universal permits will be issued for the full amount of the country's imports of the following classes of goods: (a) direct imports by the gold mining industry; (b) essential foodstuffs; (c) Government stores (including railway equipment); (d) petrol and oil; (e) electrical generation and distribution equipment. The distribution of universal and restricted permits between other classes of goods will be determined by:- (a) the essentiality of the goods to maintain the economy of the Union of South Africa; (b) the essentiality of the goods to develop the country's natural resources and to provide essential services; (c) the availability of essential goods in "hard" and "soft" currency countries. To the extent that universal permits are used by importers for purchases in soft currency countries, settlement will be effected in gold with the Bank of England. The prohibited list will be maintained but, in order to comply with the spirit of Article XII 3 (c)(ii) of the General Agreement, very importer of consumer goods whose total 1948. imports exceeded a value of £5,000 will receive an additional allocation of £50 universal and £50 restricted permits, which can be, used for the importation of any goods whether on the prohibited list or not. GATT/CP/62 page 178

SOUTHAFRICA (continued)

(i) The South African system of import control is not based on any complicated system of import quotas for individual commodities. It distinguishes merely between two types of commodities, namely, essential and non-essential articles. (ii) All goods regarded as non-essential have been included in, the list of prohibited Imports, and licenses therefor are issued only in exceptional circumstances (iii) In determining whether and to what extent individual artie- les falling in the category of essential goods will be imported into the country, the Government of the Union of South Africa are guided solely by - (a) the essentiality of the particular commoodity for the maintenance of the country's economy, for the development of its natural resources and for the provision of essential services; (b) the amount of foreign exchange available for payment of the country's import requirements. (iv) Under the scheme of import control at present in force in South Africa, only four broad categories of essential goods are admitted into the country, namely (a) capital equipment for essential industries; (b) spare parts- (c) raw materials for industry; and (d) consumer goods (other than non-essential). (v) Since the compilation of import statistics for 1948 and 1949 has not yet been completed, the Government of the Union of South Africa are unfortunately not in a position to furnish statistical information showing the effects which their restrictions have had upon imports of particular commodities or upon the distribution along sources of supply from which such imports are obtainable. The attached statement showing the total value of all SouthAfrican imports during the period July, 1948, to September 1949, from various countries will, however provide some indication of the extent to which the shares of individual countries in South Africa's total import trade have fluctuated since November, 1948, when imports into South Africa were placed under certain restrictions, (vi) The Government of the Union of South Africa are not in a position to furnish comparable data on prices in alternative sources from which the goods at present admitted into South Africa are obtainable.

The following are the footnotes to the Statistical Table on the following page: (1) The Exchange Quota Regulations and Import Prohibition in respect of certain non-essential articles were introduced on the 5th November, 1948. (2) This group includes the following territories:- Bahrein Island, British Borneo, British Malaya, Hong Kong, Anglo- Egyptian Sudan, British West Africa Kenya, Mauritius, Nyasaland, Tanganyika Uganda, Zanzibar British West India Islands and other parts of the British Empire. (3) This group includes the following countries:- India and Pakistan, Eire, Union of South Africa, Burma and Iraq. GATT/CP/62 SOUTH AFRICA (continued) pages 179/180 VALUE OF IMPORTS SHOWING THE EFFECT OF IMPORT RESTRICTIONS (thousands of South Africanpounds)Pounds) 1948 1949 July AugustSeptemberOctober Novermber December January February March ury March April May June July A ulgust 'September i~~~~ Sterling Area Soft -gecyCounties: - 10,900 9,972 9,799 9.,856-10,539, 53c,8 10, 8;3 1117,6 J3 159 12,9,63 11,903 12,08 16,553 17,570 C0o 30 6,461 British )on-self- (2 g6emin)Colonies(2 1,100 494 r03 021L 742 770 8 720 1,107 1046 520 1,076 564 476 436 Australia 129 586 610 250 143 13 65 420 254 305 248 129 320 New Zealand 24 9 5 6 14 3 43 6 17 6 I Ceylon 84 8 276' 299 ! 10337 42.3 436 225 516 307 336 263 44 210

Southern Rhodesia 98 74 I 93 140 810 00 105 136 205 210 358 251 316 293

- - - - other I 528 1 061 253 - - -- - 624 1.250 --- 409 (3) -4 ---74a. .. -.Z. 500- 405 .. .91. i a i i Total 2: 9271 12,198 )11141i 2,962 13,232 113,443 , 15,026 15,0o6 14.058 14.,034 19,094 ;20.,109 10,520 8,143 I- 11 - Non-.Ste ling -Soft Curreric Countries: - Czechoslovakia 110 107 66 42 43 96 83 31 27 u 46 10 31 21 11 29 21 30 36 9 6 7 7 6 35 20 143 23 24 17 33 94 26 82 10 124 157 175 173 115 125 1.37 227 178 252 419 334 285 216 French Possessions 4 26 1 1 10 2 0 1 4 6 3D 2 3. 15 Germany 63 94 161 222. 277 207 133 184 200 140 158 187 124 114 Greece 25 3 1 2 2 2 1 1 Netherlands 259 270 249 222 226 131 76 79 103 54 116 74 57 51 Indonesia 120 63 4Q 140 75 218 55 2 178 93 96 74 39 67 21 Surinam and Netherlands Antilles 9 97 99 40 10 1,74 Italy 403 474 365 220 160 378 209 105 82 157 Us 161 107 Norway 90 112 121 50 ,31 70, 47 57 54 61 35 20 Poland 1 1 26 17 4 1 Port~gal 60: 28 33 30 53 54 45 27 48 .46 74 39 46 32 5 3 29 83 21 17 16 26 8 1 7 2 3 1 I rtiguese East Africa 209 169 172 170 147 49 117 124 162 114 130 145 104 67 Angola 25 19 9 25 16 24 70 I44 34 58 41 29 Spain 6 14 7 123 6 33 4 5 65 3 3 a a Sweden 550 625 431 745 590 640' 294 237 361 296 231 325 224 Afriish Empire 2 1 10 6 1 1 1 537 I 1 go9slavia 1 3 1 3 5 15 19 1 1 31 Arabia 404 703 512 365 596 418 360 447 Iran 373 739 591 674 417 751 459 539 524 1,042 503 649 690 637 Japan 22 71 51 84 58 67 68 49 1 Palestine 1 1 3 1 3 1 2 1 11 Earpt 5 3 236 51 192 2 31 Morocco 23 54 50 30 78 10 74 Argentina 121 101 02 .75 57 87 104 46 38 22 142 Bravi1 254 237 158 670 220 535 129 193 143 203 203 81 169 150 84 9 16 15 5 -it 0 2 2 Other Foreign Countries 127 959 1094 027 672 957 829 732. 37 24 51 Tas-a. ______~ 4263,O72 3,159 3,003 k1'$421521,7_,0,450_~______3121"I United States of America 10.95910,33111,920 10,041 2.1,064 C.311 1062 57 5,0851 7.,349 6,290 7,771 7,647 5,682 5,522 Canada 1, 869 ,61,9531,'16p 2:177 2,0o67 2,44.2 2,2.58 966 2821 1,162 93~4 2,675 2,664 l4l161 BQLI&Ju 60 1,006 000013 .1,146 1,125 1,054 010 67~~~~~~~~~5625 709 959 609 437 694 Belgimr Congo 432323 369 270 hQ5~~ 200. 273 217 4r73 503~ 591 4a.4 3471 67 47 Switzerlannd 390 52 9: 30; 26 i 23 1 302 140! 187 1.48 15 493$1 Philippine Isl=ids 18 153 3 7 9 47 ~~~ ~~~~~ ~~~57~~3U 147~~~~~~~59 ~~~10 4 16 .1 1 2. 42 Cuba ~~~ 9~~~~ 12 J14 7 '. Mexico 70~~~ 3!4 27' 6 10 1-8 6 6 Total 14,788 1L8l515453 1750 1610 23 14,463 80C050 8,650 '/,?25 8,774 '1223i11,2 ,716 8 246 For f£ctnotes see ---- 1. precQ.:i' pag6. I .,9 GrandGrandTotal - - -7 -I I-I3122 1;6--- 31,1,3534 300 -1-. 31313.11,3232261426 .1148 260726,877 6,8 25,96 34,793k.20f-- 23602188I23.602--- 18.9 810 1-31,242 30,007 31,501000,L50 .. 3,7 _126,988 i-25,966 34.,479 34,720 -3 I GATT/CP/62 page 181 SOUTH AFRICA (Continued)

V. (i) The Govermnrmnt of the Union of South africa have recently experienced considerable diplomatic pressure from certain countries which, since the introduction of South Africa's import restrictions have lost a substantial share of their export trade with South Africa - (a) because they previously supplied to South Africa articles which, being of a less essential character, were either included in the list of prohibited imports or, being consumer goods, do not carry as high a degree of essentiality as capital equipment spare parts and raw materials for industry; and (b) because they were for various reasons, unable to compete effectively for the supply of the classes of essential requirements to an extent that would have enabled them to make good their export losses under (a); (ii) These countries have urged that South Africa should conclude bilateral treaties with them which would provide for the importation into South Africa from their respective areas of specified quantities of goods, including articles on the list of prohibited imports. (iii) Requests for the conclusion of treaties of this nature have consistently been refused by the Government of the Union of 0outh Africa who regard them as contrary to the best interests of the country and also as foreign to the main objectives of the General Agreement, Some of these countries are now resorting to retaliatory import measures against South African products merely because of South Africa's refusal to conclude bilateral treaties with them. These measures involve the blunt refusal of import licenses for certain types of South African goods, despite the fact that goods of like nature are allowed into the countries concerned from other sources of supply. Whilst the application of these discriminatory restrictions have not yet disclosed any substantial change in the pattern of South Africa's export trade it has of course, become necessary to seek alternative outlets for the products affected and some diversion of exports in particular commodities as amongst individual markets in Europe which constitute traditional outlets for South African products is likely to occur as a result of the measures referred to, GATT/CP/62 page 182 UNITED KINGDOM

Introductory Note The time at which this paper is written is one at which United Kingdom import policy is influenced by a number of factors the effect of which cannot at present be clearly fore- seen. In particular, the devaluation of the pound sterling in September, 1949 is a major development of economic policy, the long-term effects of which cannot as yet be fully or precisely assessed. This paper must accordingly seek to outline, with particular reference to Article XIV of the General Agreement, the nature of United Kingdom import policy as it has been in recent years and as it stands at the present moment, and should not be taken to imply that the various features of that policy will all necessarily continue unchanged. For this reason, also, the Government of the United Kingdom must ask that the paper should be treated in accordance with the G.A.T.T. procedure for secret documents.

I. 1. Restriction of imports to safeguard the balance of payments is carried out entirely by means of an Order under the Import, Export and Customs Powers (Defence) Act (1939) prohibiting imports of all classes of goods except under licence granted by the Board of Trade. 2. The United Kingdom exchange control mechanism is not used to restrict imports; permission to pay sterling to the overseas supplier, where payment is in sterling, or the necessary foreign exchanges where payment is not in sterling, is granted automatically in respect of all imports for which licences are granted (in the case of goods imported under Open General Licence, on production in due course of evidence of import). 3. A considerable number of commodities are imported on Government account only; no licences are normally granted for the import of these on private account. In some cases, the quantities imported by the Government Department responsible for importing are restricted on balance of payments grounds; in others, there is no such restriction and the Department concerned imports (subject to availability) whatever quantities of the commodity from overseas are required to meet domestic demand. Further details are given below.

II Paymentsarrangements with other currency areas III 4. It may be helpful by way of introduction to .'caA briefly the general nature of the payments arrangements (and in certain cases the associated trade arrangements) between the United Kingdom or the sterling area and the other principal currency areas at and since the beginning of 1948. (i.) The sterlingarea The financial arrangements of the sterling area countries can be broadly summarised as follows:- (a) The currency reserves of individual sterling area countries are held largely in the form of balances held by their Central Banks in the Bank of England. GATT/CP/62 UNITED KINGDOM (continued) page 183

(b) The sterling area countries,jrtL> speaking, use sterling as their common external currency and as their own monetary reserve. The economy in imports by sterling area countreis from "hard- currency"countries necessary to protect these reserves is secured by a voluntary understanding between the members of the sterling area tolimit such imports so as to avoid any unjustifiable expenditure of gold or convertible currencies, (c) International payments by countries withinthe area are for the most part made in sterling; and no exchange control is maintained by the United Kingdom on transfer of sterling within the sterling area, even for capital transactions. The area thus represents the largest international system of free multilateral payments now in existence outside the dollar area. (d) Payments in respect of individual transactions between traders withinsterling area and those in other currency areas are conducted largely in sterling, the net balances due to or from individual non-sterling countries from time to time being settled in the main by payments between. London and the principal barks of the foreign country concerned; according to the payments arrangements in force. The payments arrangements made by the United Kingdom with foreign countries thus provide the mechanism for payments between these countries and the sterling area as a whole. (ii) The AmericanAccount Area (Viz. United States of Americaand dependenoicde'sp Bolivia, Colombia, Costa Rica, Cuba, Dominican Repu- blic Ecuador, El Salvador, G&Latbm&Laa, Haiti, Honduras, Mexico, Nicaragua, Panama, Philippines and Venezuela.) Payments by sterling area residents to residents in the American account area are in general made in dollars or by payment in sterling to an "American Account" maintained by the payee or his banker. Holders of sterling on "American Account" have the unrestricted right of conversion of their sterling into dollars in Londn at the current rate of exchange. Payments to residents of the American Account area, whether in dollars or in sterling to American Accounts, are therefore for balance of payments purposes to be considered as dollar payments. The payments arrangements with Canada are similar in effect, though Canada is not within the American Account area. (iii) Other areas Payments between the sterling area and each of the remaining important trading countries are regulated by Monetary Agreements between the United Kingdom and the other country (under which each party undertakes to hold any balances of the other's currency accruing to it7 either without limitor up to specified limits) or by sterling Payments Agreements (under which settlements are entirely in sterling. (In the case of O.E.E.C. countries,the operation of these agreements is in effect supplemented by the arrangements as to drawing rights made in the Intra-European Payments Scheme.) GATT/CP/62 page 184 UNITED KINGDOM (continued) It follows from this system and from the nature of the sterling area that the effect on the sterling area' s monetary reserves or overall balance of payments of a payment between a sterling. area resident and a resident in any of those other areas is the same wherever within the sterling area the former resides. Thus, for example, an additional purchase by a sterling area resident from Switzerland represents a probable obligation to pay gold from the sterling area's gold holdings irrespective of whether the purchaser is in the United Kingdom, Australia, India, or elsewhere in the sterling area. Accord- ingly, therefore, the currency of a given foreign country will normally be regarded as a "hard-currency" or a "soft-currency", or as something in between, in the same way by all sterling area countrieseX 5. Some of the countries within this group are to be regarded as "hard currency" sources of supply, and others as "soft currency" sources; but the position vis-a-vis individual countries is liable to change from time to time. For example, in the immediate postwar period, those countries of Western Europe which had been under enemy occupation found it difficult for obvious reasons to pay for the large imports of sterling area products they needed. This difficulty was not partly by the United Kingdom's pursuing a policy of admitting imports of loss essentials or even of entirely luxury goods in liberal quantities from these countries, thus putting them in possession of sterling which they could use for essential purchases; partly also by substantial credits extended by the United Kingdom (sometimes as direct credits,or in a few cases in the form of readiness to hold balances of their currencies under Monetary Agreements with them). These countries, from the sterling area viewpoint, were thus "soft currency countries", in that additional purchases of goods from them morely reduced the credits that had to be given to them by the United Kingdom. In the case of some of these countries, o.g. Belgium, the balance of trade with the sterling area has since swung the other way, and their currencies are now "hard" or quasi-hard, i.e. purchases from them involve gold payments or a risk thereof; in others the same conditions continue to persist to some extent, and their currencies remain "soft". To take another example, all payments to Switzerland are liable to involve a loss of gold, and the Swiss currency is thus a thoroughly "hard" one. Many countries lie somewhere between these extremes. X The terms "hard currency" and "soft currency" arc used for convenience, but they should not be taken as being either exact or absolute terms, or to imply that the "hardness" or "softness" of particular countries as sources of imports are primarily determined by financial as opposed to trade factors. There are many gradations between the thoroughly "hard" and the thoroughly "soft" currency countries. The term "hard currency" is applied broadly to those countries whore payments by the sterling area involve payments in gold or dollars or the risk of payment in gold or dollars and the term "soft currency" to those countries where no question of gold or dollar payments arises and there is no fear that sterling area expenditure there will result, in an unmanageable deficit. The "hardness" and " softness" of particular currency areas thus depend largely on the pattern of their trade balances with us and other sterling area countries (which may depend in substantial degree on the existence and severity or otherwise of restrictions maintained by them on imports of our goods). pageGATT/CP/62 185 UNITED KINGDOM (Continued)

6. Mention should also be made at this point of the "Trans- ferable Accounts" system, which enables residents of each country in the Transferable Account areas to make payments in sterling for current transactions not only to residents in the sterling area but to residents in other Transferable Account countries and also certain other countries. Thus Transferable Account countries are able to spend their sterling freely for current transactions with most other countries outside the dollar area. During the period in 1947, when sterling convertibility was being attempted, sterling on Transferable Accounts could also be paid freely to American Accounts,i.e. was freely convertible into dollars, This additional facility was withdrawn in August, 1947, and new payments arrangements negotiated, with the object of maintaining as wide an area of transferability as possible consistent with avoiding resultant gold or dollar out- goings. This necessitated the removal from the Transferable Account Area of certain countries which continued to insist on settlement or partial settlement of balances with the sterling area in gold or dollars; and the new payments arrangements with the countries which remained in the Transferable Account area accordingly did not allow freedom of transfers to the countries now removed therefrom. Provision was made however, as far as this could be done without gold or dollar losses, for "administrative transferability", .a procedure whereby permission is given by the Bank of England for specific transfers between countries on an ad hoc basis. "Bilateral" trade arrangements 7. The negotiation by the United Kingdom of"bilateral" trade and/or payments arrangements with various countries did not (as is sometimes thought) commence only in the latter part of 1947; but it is of course the case that the extent to which United Kingdom trade was carried on under "bilateral" arrangements increased considerably after the world dollar crisis of that year. In the "bilateral" negotiations of late 1947 and the following years, it was frequently necessary, for obvious reasons, to negotiate combined or concurrent trade and payments arrangements. As will be clear from the foregoing paragraphs, the payments arrangements provided a basis for trade between the other country and the sterling area as a whole. In general however, the trade arrangements covered trade with the United Kingdom only, trade with the rest of the sterling area being either carried on on the basis of the payments arrangements without specific trade arrangements or being dealt with by separate arrangements negotiated by other sterling are countries. (Exceptionally, however, in thea wse of trade with Japan it has been found convenient for those sterling area countries most concerned to engage in joint trade negotiations.) The various trade arrangements which have been negotiated differ widely to meet varying circumstances, but the following features which are common to many or all of these arrangements may be noted:- (i) Provision for periodic joint review by the two arties of import restrictions on each other's products, with the objective of permitting the maximum practicable freedom for trade to flow. one task carried out in such joint reviewsFrequently,has been that of reaching informal short-term understandings between GATT/CP/62 page 186

UNITED KINGDOM (Continued)

the parties as to the intention of each to license the import of particular quantities of a number of particular classes of goods from the other during the forthcoming import licensing period. In a limited number of cases, formal commitments to license specified quantities have been entered into, Except however as indicated below, we have sought to avoid giving or receiving undertakings to purchase specified goods; the commitments are commitments merely to license imports, leaving the country concerned free to license competing imports from other sources and let the actual source of supplybe determined by competition assuming its balance of payments position renders this practicable, (ii) In certain cases, His Majesty's Government undertook to license or otherwise facilitate the supply of specified quantities of goods from the United Kingdom urgently needed by the other party, or obtained similar undertakings as to United Kingdom requirements from the other party. (iii) In a few cases, where United Kingdom purchases of particular primary products have been on so large a scale as to have a major effect on the balance of payments with the countries concerned, we have negotiated purchase arrangements for such products concurrently with the payments arrangements. The considerations which have guided us in deciding the terms on which we would be prepared to make such purchases have been the same as have guided us in relation to other bulk purchases on Government account, as described later in this paper. Developments in 1948 and 1949 8. At the beginning of 1948, the most notable features of the United Kingdom's external trade position were:- (i) An extreme shortage of means of payments for imports from the dollar area, which was gradually coming to be recognised as a major sympton of a world-wide problem of post-war unbalance between the dollar and non-dollar areas, and which was soon to be eased (though still inevitably remaining acute) by the United States in providing financial aid on a large scale to countries participating in the European Recovery Programme, and (ii) A balance of current payments with the non-dollar area not yet in equilibrium but - with the volume of exports steadily continuing to rise - approaching equilitrium. 9. Of developments in 1948, the most outstanding in relation to import policy was the advent of E.R.P. aid in the spring. This enabled the resumption of regular programming of imports from the dollar area, which since August, 1947 had beendealt GATT/CP/62 page 187 UNITED KINGDOM (Continued)

with by an interim policy of undertaking no new purchasing commitments except where necessary to secure an essential minimum of vitally needed supplies. No major development in regard to imports from non-dollar sources took place during the year; but there were a number of significant trends in the United Kingdom's general trade position in 1948, notably the following:- (a) the continued development or intensification of balance of payments difficulties in a number of other countries materially hindered the reconstruction of the United Kingdom's export trades, (b) nevertheless, the total volume of United Kingdom exportscontinued to increase at a moderately satisfactory rate, (c) exports to the dollar area (to which all possible Government encouragement was and is of course given) also continued to increase, at a rate rather higher than that of exports to other areas, (d) the improvement in United Kingdom exports to a number of countries (particularly various European countries) made it possible to permit more liberal quotas for imports from these sources 10. Towards the end of the year the United Kingdom Government, in the light of changing economic circumstances, in particular theeasing of some of the disequilibria in intra-European trade began to consider whether and to what extent in the light of the balance of payments position, they could make a start with the removal of import licensing restrictions on goods from "soft currency" countries and subsequently in the early summer of 1949 took the initiative in O.E.E.C. with proposals to this end. These led to the O.E.E.C. policy of "trade liberalisation" which was one of the major developments of 1949. The most urgent problem was one of trade with other Western European countries, since as an aftermath of the war this trade had been effected in a high degree by import restrictions, but His Majesty's Government considered it desirable that such measures of removal of United Kingdom import restrictions should, in general, extend not only to O.E.E.C. countries but also to other countries to which the United Kingdom could safely afford to extend them, notably of course the other members of the sterling area. 11. At the same time, consideration was being given in the United Kingdom and in a number of other countries to the related intra-European payments problem, i.e. that of reviewing the Intra-European Payments Scheme so as to provide a more effective basis for multilateraltrade in Europe; and a number of suggestions to this end were made by the representatives of the United Kingdom and of other countries in discussion in the O.E.E.C. GATT/CP/62 page 188

UNITED KINGDOM (Continued)

12, The initiative taken by the United Kingdom in O.E.E.C. with proposals for concerted action by O.E.E.C. countries for the freeing (or "liberalisationn", as it came to be called) of intra-European trade, by placing imports from other O.E.E.C. countries on Open General Licences to the maximum extent possible, coupled with a revision of the Payments Schemes led to the decisions of the O.E.E.C. Council on the liberalisation of intra-European trade of 4 July and 13 August, 1949. Agreement in broad general terms was also reached in June as to the lines on which the Payments Scheme was to be revised, The subsequent work of detailed revision of the latter however presented considerable difficulties for a number of countries, and it was some little time before an acceptable compromise could be found, on the basis of a revised scheme. 13. The O.E.E.C. decisions required countries to put into effect their first batch of "liberalisation" measures by the end of September, 1949. The measures to be taken by the United Kingdom on its initiative with the removal of quantitative restrictions necessarily involved considerable preparations. Meanwhile, the developments leading to the devaluation of sterling on 18 September were taking place. It was considered, however, that the decision to devalue in no way invalidated the considerations which had led the United Kingdom to propose the liberalisation scheme; the United Kingdom accordingly went ahead with its proposals, and on 29 September announced the issue of Open General Licences (O.G.L's) for a wide and varied range of goods. 14. At the end of October and the beginning of November the O.E.E.C. Council reviewed the progress towards liberalisation of trade, and reached the further decision .'f 2 November which provided that member countries should adopt the objective of removing quantitative restrictions before 15 December, 1949, at latest, on at least 50 per cent of their total imports on private account from the other member countries as a groups in the respective fields of food and feeding-stuffs, raw materials and manufactured goods counted separately. On 15 1949 the United Kingdom announced a further list ofDecember,goods to be placed on Open General Licences for the same range of countries as those to which the earlier relaxations applied. Together with the relaxations already in forces the further relaxations announced on 15 December fully discharged the obligations of His Majosty's Government under the O.E.E.C. Decision of 2 November, the percentages of private account trade covered by the Open General Licences being on the basis laid down by the Organisation, 83% for food and feeding-stuffs 69% for raw materials and 55% for manufactured goods. In relation to the O.E.E.C. countries to which the relaxations apply these percentages represent 86% for food and feeding- stuffs, 89% for raw materials and 84% for manufactured goods, or 87% overall. 15. The lists of "soft currency" countries to which these O.G.L's extend call. for some description. It consists broadly of the other O.E.E.C. countries (with the exceptions of Switzerland, the Belgian-Luxemburg Economic Union,the Belgian Congo, and Western Germany) the sterling area countries; and most foreign countries outside the O.E.E.C. area and the dollar GATT/CP/62 page 189 UNITED KINGDOM (Continued)

area, with the exceptions particularly of Argentina, Japan and also of Central and Eastern European countries outside the O.E.E.C. 16. One result of the adoption of the liberalisation policy by the United Kingdom and other O.E.E.C. countries is likely to be a substantial reduction in the area of import trade over which quotas are fixed as a result of bilateral discussions; but there is of course likely to be a continued need for such discussions in so far as substantial areas of trade either way remain subject to import restrictions.

17. During the second quarter of 1949, the gold and dollar balance of payments of the sterling areas which had during 1948 steadily been improved,deteriorated seriously; the quart terly gold and dollar deficit, which had been £76 ma.L £95 m., and £82 m. in the previous three quarters rose to £157 m. In June, 1949, therefore the United Kingdom found it necessary to apply a "standstill" to new commitments for imports from the dollar areas pending the working out of a new dollar import programme involving a reduction of approximately 25% in purchases; and at the meeting of Commonwealth Finance Ministers in July it was agreed that the representatives of other sterling area countries (other than the Union of South Africa, to which special considerations apply) would recommend similar action to their Governments. 18. The gold and dollar deficit continued at the same high rate throughout most of the third quarter of 1949. After . consultation with the International Monetary Fund, the pound sterling was devalued on 18 September, 1949 from a parity of 173/8.367d. per fine ounce to 250/-d. 19. No more far reaching measure alternative to import restriction or discriminatory trade controls can be taken by a Government than a major devaluation of its currency. Strong commercial motives are thereby supplied to the ordinary trader to restrict imports and increase exports and these motives operate particularly in relation to the "hard" currencies which have not been devalued. But time is needed for a major devaluation to work its effects, and the full effects of what was done on the 18 September have not yet been seen. Dollar re-programming 20, Following devaluations it was decided that there was no reason to alter the decision to reduce dollar imports by approximately 25%; the new dollar import programme subsequently announced provided for imports at the approximate rates of $800 m. in the second half of 1949 and $600 m. in the first half of 1950. This programme was fixed despite the expectation that devaluation would lead to a considerable immediate improvement in the dollar partly of a non-recurring character and partly of a position,continuing character; this has in fact occurred, but it is not as yet possible to estimate how far it is attributable to non-recurrent and how far to continuing causes. GATT/CP/62 page 190 UNITEDKINGDOM (continued)

21. It will be evident from the foregoing that the balance. of payments position of the United Kingdom and the pattern of its overseas trade, together with the complexity of its economy, necessitate a correspondingly complex system of import programming and control, which has to be modified and adapted from time to time to meet changing circumstances; for this reasons, this memorandum must necessarily deal in the main in broad generalizations. 22. In the case of imports from the dollar area, a detailed programme is established and reviewed regularly, normally every six months, in the light of the prospective dollar situation. This programme, which is drawn up in the light of availabilities from other sources, is subjected to close and detailed examination to establish the essentiality of the proposed imports. After adjustment and approval it provides the framework governing procurement arrangements for imports on Government account and licensing of private account imports. Programmes for imports from other hard currency sources (notably Belgium, Switzerland, Western Germany, and Japan) are also reviewed at regular intervals, normally in connection with bilateral negotiations, and are subjected to similar close examination. 23. The programming of imports from soft currency sources is much more flexible, and is becoming more and more in the nature of forecasting rather than of programming proper. Whore necessary the programmes for individual countries are reviewed in relation to bilateral negotiations as they arise, but the overall programme of imports from soft currency sources is normal. reviewed annually as part of the regular examination of the general balance of payments position. For the most part these "programmes" are no more than estimates of availabilities, or of tho quantities of goods which other countries will succeed in selling to the United Kingdom market. General supervision of the actual trend of imports is exorcised by a running review of import and payments statistics. This provides a check on the "programmed" estimates and enables any tendency for individual soft sources of supply to become harder to be detected. In general, however, deviations from the programme estimates are not regarded as a serious matter unless there is clear evidence of a chronic deterioration in the balance of payments situation, either overall or in relation to particular countries. 24. The general review of the balance of payments plays an essential part in the work of general economic programming and planning and is closely related to the consideration of internal economic and financial policy. It also plays an essential part in the work of O.E.E.C., and the actual timing and method of the balance of payments reviews is largely influenced by tho operations. of O.E.E.C. GATT/CP/62 page 191

UNITED KINGDOM (continued) Imports on public account 25. A considerable range of commodities - almost entirely foodstuffs and raw materials - are imported on public account only. (A list of these is given in Annex I ) Many other commodities were imported on public account during the war and early post-war periods, but are now once more imported on private account; the list of commodities imported on Government account is frequently reviewed, as part of the arrangements in the United Kingdom for removing economic controls as and when these become unnecessary, and commodities are transferred from public to private importing if and when the conditions which make it desirable to import them in Government account cease to obtain. These conditions vary to some extent for different commodities but a common feature in most cases is that the commodities are in short supply, either for balance of payments reasons or because of world shortages. Such commodities are imported on Government account where it is considered that centralised purchase (for example bulk purchase under medium or long-term contracts) will facilitate the procurement of adequate supplies at reasonable prices or where Govermient import facilitates rationing, price stabilisation, or other controls designed to ensure equitable distribution. In nearly all such cases, the commodity in question is imported on Government account by the appropriate Government Department; the most notable exception being raw cotton where a permanent policy of contralised purchase has been adopted, and which is imported for domestic consumption by the Raw Cotton Commission (a public corporation set up under the Cotton (Centralised Buying ) Act, 1947). 26. The actual means of procurement, and the procurement methods followed, vary considerably from commodity to commodity according to circumstances and the nature of the trade. As regards the detailed means of procurement of. imports of Government account, contracts or orders are placed with the overseas suppliers in some cases by Government Departments themselves and in others by purchasing agents acting for Government Departments. As regards procurement methods, purchasing is in some cases effected by "spot buying" in overseas commodity markets, and in others by the placing of short, medium, or long-term contracts with overseas producers or associations of producers or in some cases overseas Governments. 27. The general purchasing policy followed in all cases is guided by "commercial considerations", i.e. cost (landed, duty-paid), quality, availability, continuity of supply, etc., subject to the necessities of the balance of payments situation, which has in some cases made it desirable to purchase supplies from soft currency sources at prices somewhat in excess of those prevailing for hard currency supplies, or to place initial contracts at such prices in order to develop new production of commodities in soft currency areas. 28. Commercial and balancte of payments considerations have also governed the choice of methods of procurement i.e. spot buying or contracts. The United Kingdom has entered into medium or GATT/CP/62 page 192 UNITED KINGDOM (continued) long-term contracts for the purchase of a number of commodities, mostly foodstuffs, in post-war short supply in the world as a whole or in the non-dollar area. The essential criterion in deciding whether or not to enter into a particular contract is whether the needs of tho United Kingdom for adequate supplies at favourable prices are likely to be best met throughout the period of the proposed contract viewed as a whole by such a contract or by alternative purchasing methods. The duration and price and other provisions of such contracts vary widely according to circumstances in most cases, flexibility to meet changing market conditions is provided by such means as fixing a price for the first year of the contract and leaving prices in subsequent years to be negotiated later, usually but not always within a specified range of percentage variation upwards or downwards frorm the price in the previous year. Imports on private account 29. A number of different methods of licensing imports on private account are used in United Kingdom import licensing practice. These are:- (a) _ onGeneralLicences. (O.G.L's). These authorise any person whatever to import a specified commodity, without any limit of quantity or other condition, either from any country in the world, or from specified countries. "World O.G.L's" are issued in respect of a limited number of commodities of which the availabilities or sources of supply are such that there is no balance of payments objection to admitting all imports without any restriction; such commodities are in effect not subject to import restriction at all. O.G.L's permitting unrestricted imports only from specified countries are much more extensively used. The groat majority of those are "soft currency O.G.L's", permitting unrestricted imports from all countries to which the United Kingdom has extended its "liberalisation" policy. (b) Open Individual Licences (O.I.L's). These are licences issued to individual traders permitting them to import specified classes of goods without limit of quantity, either (in a few instances) from any country, or more usually from specified countries. In some cases they are subject to review in the light of the actual trend of imports as compared with programme estimates. In most cases such licences are granted on application to any person desiring to import the class of goods concerned the technique of issuing O.I.L's. instead of an O.G.L. being adopted:- (i) because imports under the O.I.L's have to conform to certain specifications and an assurance is required from the importer that he will use his O.I.L. only to import the specified types, or GATT/CP/62 page 193 UNITED KINGDOM (Continued)

(ii) to facilitate the operation of controls over the internal distribution of imported supplies. In some cases, however, O.I.L.'s are used in order to give freedom of import to certain limited categories of traders, e.g. in respect of tin, rubber, and coffee, to members of the commodity markets dealing in these. (c) Individual import These licences need no special description, butlicences.an indication of the various techniques of individual licensing used may be of interest. Given that it is necessary to import a particular class of goods in limited quantities, there remains the problem of determining what persons are tobe allowed to import the goods and in what quantities. There are three basic methods by which this problem can be dealt with, viz.:- (i) Ad hoc consideration of applications for licences. This is appropriate in the case of various classes of goods (e.g. many typos of machinery) which are either in world short supply or are essential to United Kingdom industries but cannot be imported freely for balance of payments reasons, and are of such a nature that it is desirable to consider applications for import licences in the light of the proposed end-uses, rather than to give importers fixed quotas and leave it to them to distribute these as they think fit to other distributors or consumers. Applications for import licences are judged accordingly. (ii) Apportionment of quotas among importers. Whore it has boon decided that a given quantity of imports (oither total or from particular countries) can be licensed, this may be shared out among regular importers on as equitable a basis as possible. In some cases such a basis is determined in consultation with the trade or trades concerned; in other cases, licences are shared out primarily on the basis of the trade carried on by the individual importers in a past representative period. (In this type of case often the most representative past period is the immediate prewar years, and there is considerable difficulty in steering between the generally undesirable rigidity of allotting licences solely on the basis of pro-war trade to the exclusion of now importers, and the possible inequity aFllowing new firms to enter the import trade while the trade of other importers is severely restricted in such cases, moreover, it is often difficult to devise any basis of allotting shares to new entrants, since to give an equal share to each. such firm may obviously be inappropriate. This is a very difficult administrative problem, which has to be considered in the light of the circumstances of each trade concerned; the general principle followed GATT/CP/62 page194 UNITED KINGDOM (Continued)

is to provide as much flexibility for new importers to compete with established ones as is practicable and equitable.) (iii) Apportionment of quotas among exporters. Where it has been determined (often as a result of trade negotiations or bilateral reviews of import trade) to license a fixed quantity of imports of a given class of goods from one particular exporting it is sometimes convenient to arrange for thecountry,authorities in the exporting country to allocate this quantity among its various exporting firms' in such cases, licences are granted be any importer on production of evidence furnished by him by his supplier in the exporting country that the goods concerned from part of the export allocation made to the latter by the authorities of the exporting country. In the case of goods in short supply, such arrangements would clearly tend to force United Kingdom importers to pay increased prices; this method of allocation is thus more appropriate in the case of goods in which there is a reasonably high degree of competition between suppliers. The choice between these methods of apportionment is of course dependent on the circumstances of the trade Concerned; broadly, the first method is most appropriate to scarce, highly essential or highly specialised types of goods the last to a limited range of goods, mostly non- essentials in free supply, and not highly specialised, while the second method is appropriate to the numerous intermediate types of case. 30. Mention should also be made of two somewhat special types of licensing procedures, viz:- (i) Imports for use in the export trades Special consideration is given to applications for licences for such imports. Where goods are to be re- exported in the same f':rm as they are imported, the application is considered in the light of balance of payments considerations; in particular, such imports of goods from hard currency sources are in general permitted only for re-export to such sources. Imports of goods intended for export after further processing in the United Kingdom or for incorporation in goods being manufactured in the United Kingdom for export are dealt with similarly; in the light of the balance of payments consideration, and (where it is a question of hard currency imports and exports to soft currency destinations) of the proportion of the cest of the final product represented by the imported material or component and of general export policy considerations. (ii) Token imports A special scheme was introduced in 1946 to mitigate as far as balance of payments considerations permitted, the hardship caused to exporters in other countries of various GATT/CP/62 page 195

UNITED KINGDOM (continued)

classes of goods ( primarily branded products and other manufactured goods) whose trade with the United Kingdom market had boon cut off by import prohibitions, by permitting the resumption of a small flow of imports and thus enabling exporters to keep their products before the United Kingdom public. The scheme was applied to a number of countries which desired to participate and were prepared to make the necessary administrative arrangements quotas are allotted by the participating Governments to their exporters so as to allow the latter to send to the United Kingdom 20% (by value) of their average annual shipments to the United Kingdom in the period 1936-38 - and wasapplied to a list of goods drawn up in the light of requests received from the participating Governments and of the considerations mentioned above. The list of these goods and of the participating countries is given in Annex VI; owing to relaxations of restrictions on imports from soft currency countries since 1946, especially the "liberalisation" policy, arrangements for token imports from soft currency countries have largely been superseded by Open General Licences or freer individual licensing, and the token scheme as such is now of value mainly to the hard currency countries. Accordingly, since the dollar crisis of 1947, balance of payments considerations have precluded further extensions of the scheme; it has however been possible to continue it from year to year on the basis of the existing list of goods. 31. It should be added that, the United Kingdom, having elected to avail itself of the provisions of Article XIV (l)(d) of the General Agreement, such deviation from the provisions of Article XIII as arises in its import policy, is pursuant to the provisions of Annex J and/or Article XIV (3); such deviation is indeed to a considerable extent covered both by Annex J and also by Article XIV (3). IV. 32. The answer to this question is largely provided by the earlier sections of this paper. The following additional observations may, however, be useful. 33. Leaving aside imports for re-export and token imports the various classes of goods imported into the United Kingdom can be broadly classified into categories according to the method of import control followed, as follows:- I. Goods imported on public account A list of those goods is given at Annex I; the principles and methods followed in importing are described in previous sections of this paper. This covers a large proportion of the United Kingdom'scategory imports of foodstuffs (but excluding most types of fresh fruit and vegetables and manufactured foodstuffs), and a substantial proportion of raw material imports. GATT/CP/62 page 196

UNITED KINGDOM(Continued)

II. Goods on "world O.G.L." A list is given at Annex II. As stated above, there is in effect no restriction on imports of these goods from any source III. Goods on "soft currency O.G.L." A list is given at Annex III. It will be seen that this category includes in particular a wide range of manufactured goods (including many manufactured foodstuffs, and most types of machinery), and also some important raw materials and a number of unmanufactured foodstuffs. Apart from token imports in some cases, imports from hard currency sources are licensed only within the general programme for hard currency imports, which is drawn up on the principles indicated earlier in this paper. IV. Other Goods Imports from soft currency sources of goods not covered by the preceding categories are for the most part licensed (a) under Open Individual Licences (or in a few cases by issuing individual licences freely) or (b) on a quota basis, on the lines indicated in preceding sections of this paper. Imports from hard currency sources are licensed only within programmed figures. 34. As a rough indication of the relative orders of magnitude of these four categories it may be said, out of total United Kingdom imports of goods from all sources in 1948 Category I (goods at present imported on public accounts excluding those due to revert to private account shortly) accounted for approximately 50%, Category II is relatively very small, not accounting for more than about 1% of total imports, Imports of Category III goods from soft currency countries in O.E.E.C. Europe in 1948 (Before the introduction of the liberalisation policy) accounted for just under 10% of total imports; statistics of imports in this category from other countries are not available, but they are known to be substantial, and it is probable that total imports of Category III goods amounted to 20% or so of all imports, leaving a total for Category IV of something under 30%. 35. It is not possible to make a comparable analysis of United Kingdom imports from the hard currency or the soft currency areas as a wholes but of 1948 imports from soft currency O.E.E.C. countries, Category I accounted for 30%, Categories II and III together for 61% and Category IV for 9%. 36. Some further details in respect of representative classes of goods are given in Annex V. GATT/CP/62 page 197 UNITED KINGDOM (Continued)

37. As regards the statistical data requested, it is hoped that the enclosed copies of United Kingdom Trade and Navigation Accounts for the year 1949 (with comparative figures for 1938 and 1948) will in general provide sufficient detail for the Secretariat's purposes. The table appended as Annex IV, summarizing the distribution of United Kingdom imports according to main currency areas, may also be of interest. It will be seen that the proportion of total United Kingdom imports coming from the hard currency areas has not greatly diminished, or that from the rest of the world greatly increased, since before the war, n:r, indeed, has the general pattern been greatly altered. V. 38. It is of course the case that the import restrictions or equivalent exchange restrictions maintained by many other countries (including some introduced since the end of the war, e.g. by a number of countries in 1947 and 1948) have had a substantial adverse effect on the export trade of the United Kingdom, and have materially hampered the United Kingdom in the task of developing anew the volume of its exports (which during the war was reduced to one-third of the pre-war volume) to a level which will enable average pre-war standards of consumption to be restored and improved upon. Such restrictions, for the most part, have been imposed for balance of payments reasons, and in the past at least, it has been their restrictiveness, more than any discrimination against the United Kingdom which may be involved, that has handicapped United Kingdom exports. GATT/CP/62 page 198

UNITED KINGDOM (Continued) APPENDIX IMPORT POLICY IN DEPENDENT TERRITORIES OF THE UNITED KINGDOM

1. The numerous dependent territories of the United Kingdom are so varied as regards the size and character of their economies, that the details of their import control systems vary greatly from one territory to another; the general principles followed, as described below, are however common to all. 2. These territories form part of the Sterling Area, both their statutory currency reserves and the bulk of their own external balances (Government and private) are held in sterling in the United Kingdom. They thus like sterling area countries in general, have a common interest in defending the common gold and dollar reserve, and the currency of any given foreign country will be "hard" or "soft" in the same degree to them and to the United Kingdom. 3. A very few Colonial territories are in overall balance of payments difficulties, in that the level of their balances in the United Kingdom is such as to necessitate the application of restrictions on imports from all sources, including the United Kingdom and other sterling area countries; in general, however, the sole purpose of the import restrictions is to protect the gold and hard currency reserves of the sterling area by preventing unnecessary expenditure on imports from those countries with which the sterling a rea is in balance of payments difficulty. This object is served by voluntary arrangements whereby the Colonies exercise economies in hard currency expenditure comparable to those exercised by the United Kingdom, (but of course with due regard to the differing economies and circumstances of different Colonies) and by regular liaision arrangements whereby the Colonies are kept informed of changing conditions in regard to the balance of payments situation vis-a-vis individual foreign countries. The general principles of import control are thus common to the United Kingdom and all the Colonies, though, since in general the economies of the latter are less Complex than that of the United Kingdom and a large part of their imports are and have always been supplied by the United Kingdom and other sterling area countries (with which they are not in balance of payments difficulties), the effect of import controls on their import trades and general economies is less far-reaching than in the case of the United Kingdom. 4. Imports from soft currency sources are licensed on a liberal basis. The question of the application in Colonial territories of the policy of trade "liberalisation" by means of Open General Licences for imports from soft currency sources in general is at present under consideration, though, as the existing treatment of imports from such sources is already liberal, the practical effects in terms of the increase of trade which would result would not be large. 5. In certain cases, the joint reviews of import restrictions in bilateral trade discussions referred to earlier in this paper have embraced not only trade between the United Kingdom and the foreign country concerned, but also trade between the latter and Colonial territories in a limited number of products of commercial importance to Colonies or to theforeigncountry. GATT/CP/62 page 199 UNITED KINGDOM (Continued)

60 It may also be mentioned that until recently,Colonial import restrictions have been used to limit imports from the United Kingdom of a number of classes of United Kingdom products which are important dollar-earning exports, so as to secure economies in Colonial consumption of these goods comparable to the economies exercised in United Kingdom consumption. More recently, however, in the light of changing conditions it has been found preferable to cease this practice in general, and to rely instead on the measures adopted in the United Kingdom to encourage the expansion of exports to the hard-currency area. GATT/CP/62 page 200 UNITEDKINGDOM (Continued) Indexto Annexes

SUBJECT ANNEX I. Commodities Imported Exclusively on Government Account. II. Commodites on World O.G.L. III. Commodites on "Soft-Currency" on O.G.L. (Notices to Importers Nos. 336, 345 and 353) IV. Distribution of United Kingdom Imports by Main Sources of Supply. V. Commodity Analysis. VI. Token Imports. (Notice to Importers Now 346). GATT/CP/62 page 201 UNITED KINGDOM(Continued)

COMMODITIES IMPORTEDANNEXEXCLUSIVELYI ORMAINLY ON GOVERNMENT ACCOUNT (EXCLUDINGITEMSDUEINTHENEAR FUTURETO REVERT TO PRIVATE

Aluminium (virgin) Molasses Bacon Nuts:- Butter Groundnuts (peanuts) Illipe nuts Carrots (old) Nut kernels Cheese (other than fanay types) Shea nuts Chrome ore Oils and Fats:- Cocoa Animal fats Coffee Coconut oil Copper (blister and unwrought) Cotton seed oil Copra Groundnut (peanut) oil Eggs:- Herring oil (and other fish Dried albumen oils) Dried egg Linseed oil Dried yolk Maize oil Glycerine yolk Palm oil Shell Sunflower oil Feeding stuffs for animals Whale oil (mainly coarse grain) Orange juice, (concentrated) Fertilisers (certain types and Potatoes (main crop) fertiliser raw materials) Poultry Fish (canned):- Pulses Brisling Rabbits Crab Rice Crawfish Seeds (for expressing oil):- Pilchard Benniseed Salmon Cotton seed Sardines Kapok seed Sild Linseed Tunny Niger seed Fish (fresh):- Sunflower seed Salmon Soya beans White, frozen Starch and starch products:- Flour Cassava starch Fruit:- Farina Apples Farina dextrine Bananas Maize starch Canned fruit Sago flour Dried fruits Tapioca flour Glucose Steel (finished) Hemp (true) Sugar Jute and jute goods Tea Lead metal unwrought) Tim'&er (except hardwoods veneers Meta:- boxboards, some mining Canned timber and certain softwood Carcase and offal specialities) Milks:- Wheat Block Zinc metal (unwrought) Condensed Milk powder GATT/CP/62 page 202 UNITED KINGDOM (Continued) ANNEX II COMMODITIES ON WORLD O.G.L. Animal ivory, raw, whether whole tusks or section of tusks, not cut to shape or in any way prepared treated or worked. Animals, live. quadruped, the following:- Sheep, goats and swine. Bauxite, Books,printed, and other printed matter for reading purposes (not including periodicals, magazines and the like), imported as a single copy through the post. Canes and rattans, unmounted, whether split or not. Capers in brine packed in casks. Cobalt oxide, crude or refined. Coir yarn and coir fibre. Crude cobalt-iron--copper alloy. Cryolite, natural refined. Designs,value,architectural or engineering, of no commercial Diamonds rough Drugs and the like, raw or simply prepared the following:- Aconite. Aloes, Cape. Aloes, Curaca-N. Aloes Sccotrine, Araroba Areca Nuts Arnica Flowers and Rhizone. Asafoetida. Balsam of Copaiba. Balsam of Peru. Balsam of Tolu. Buchu. Calaber Beans. Calumba Root. Camomile Flowers. Cannabis Indica. Cascara Bark. Cascarilla Bark. Cassia Fistula. P~:ds. Chaulmoogra Oil. Chiretta. Colchicum Corm. Celchicum Seed. Colocynth Pulp or Apples. Crotc'n Seeds. Dandelion Root. Ephedra Herb. Ergot of Rye. Eucalyptus Red Gum. Euphorbia Gum. Euphorbia Herb. Gentian Root. Guaiacum Gum. Henbane, Egyptian. Horehound. Hydnocarpus Oil. Indian Rhubarb Root. Ispaghula. GATT/CP/62 page 203 UNITED KINGDOM (Continued)

Jaborandi. Jalap, Mexican. Kamala. Kino. Kela Nuts. Krameria. Lavender Flowers. Lemon Peel, dried. Lime Tree Flowers. J:quoriceI Root, Natural. Liquorice Root, Peeled. Male Ferm. Mastic Gum. Nux Vcmica. Orange Peel, dried. Orris Root. Papain. Pcdophyllum Em jdi. Qutnce Seeds. Rhubarb, Chinese. Sarsaparilla. Scammony Root, Mexican. Senega Root. Senna Leaves Alex. Senna Pods, Alex. Squills, White. Storax. Stramonium Leaves. Strophanthus Gratus. Strophanthus Kombe. Tinnevelly Senna Pods and Leaves. Uva Ursi, Valerian Root. Earth colours, dry, the following:- Ochres, Siennas and Umbers. Felspar, including China Stone. Film cinematograph, exposed, of a width of 1 3/8 inches only which consists wholly of photographs (with or without sound track) which at the time of importation are means of communicating news. Fireclay. Flint, unground, Fruit preserved with added sugar, the following:- Tamarinds in syrup, in cask. Fruits preserved without sugar, the following:- Mango pulp in sulphur diexide, in cask. Sliced mangoes in brine, in cask. Fur skins, undressed, rabbit. Gall nuts. Gherkins in vinegar or dill. Gold bullion. Gold coin. Gold ores, concentrates and residues. Gums and resins, the followings:- Arabia, Damar, Kauuri, Myrrh, Olibanum, Sandrac, Tragacanth. Gypsum unburnt, including alabaster. Hemp, Indian (Sunn) of the variety Crotalaria juncea, dressed or undressed. GATT/CP/62 page 204 UNITED KINGDOM (Continued)

Herts, dried in bulk, the following:.- Basil, Bay leaves, Marjoram, Parsley, Pennyroyal, Rosemary leaves, Savoury leaves, Tarragon, Thyme. Hydrographic charts. Ilmenite. Kapok. Kelp. Kyanite. Manuscripts, typescripts and like products of duplicating machines (not including printed documents), Maps and plans. Newspapers. Nickel ores concentrates residues and matte. Olives (excluding stuffed olives) in brine packed in casks, Pandermite. Peat moss, peat moss litter, dust or mould, granulated peat, and peat fuel or tailings. Periodicals, magazines, and the like imported as single copies through the post (a) by persons who pay, or have paid, the overseas suppliers direct and not through an agent, or (b) if of a learned, scientific, technical, or religious nature or printed exclusively in a foreign language, and if an agent who arranges for the import of the single copies on behalf of numbers of importers has been authorized by the Board of Trade to make arrangements for payment on behalf of such importers. Pickles and sauces, sweeetened, the following:- Mango chutney, in cask. Press photographs. Quassia. Rafaelite. Raffia. Seaweed, raw, unground, dried or bleached (not further prepared or treated). Shellac. Shellfish, fresh or boiled (not being in airtight containers), the following: Prawns. Mussels. Silrimps . Cockles % Winkles. Sillimanite. Silk worm gut, untrimmed natural in hanks or bundles. Sisal flesh. Slag, other than basic. GATT/CP/62 page 205 UNITEDKINGDOM (Continued) Spices, the following:- Aniseed, Cummin seeds. Caraway seeds. Curry powder. Cardomoms. Dill seeds. Cardomons seeds. Fennel seeds. Celery seeds. Funegteek seeds. Chillies. Cinger (whole dry root), Capsicums. Maw (Poppy) seed. Cayenne (or red) Mace. pepper. Nutmegs. Cinnamon. Pimento (allspice). Cinnamon bark. Turmeric. Cassia lignea. Vanilla beans. Cassia vera. Cloves. Wool and animal hair, raw, whether scoured or carbonised, or not, the following:-cleaned, Alpaca. Vicunn.nLlama. Camel. Goat. Rabb.t, Yerba mate. GATT/CP/62 page 206 UNITED KINGDOM (Continued) ANNEX III. COMMODITIES ON "SOFTCURRENCY" O.G.L.

Notices to Importers (Nos. 336, 348 arid 353) give lists of the commodities which have been placed on Open General Licence under the "liberalised" policy. The following ad addendato these lists should be noted: GROUP1 - FOOD, DRINK AND ANIMAL FEEDING STUFFS Cheeses, the following:- Blue Vein, Brie, Camembert, Cerrr del'Est, Demi-sel. Pont l'Eveque, Roqueffort. GROUP 3 - OIL, WAXES, GUMS, RESINS, PEREUMERY MATERIALS, ETC. Rape seed oil. GROUP 5 - CHEMICALS, DRUGS, MEDICINES, ETC. Arsenious oxide including white arsenic. GROUP 6- TEXTILES, YARNS, ETC. Cotton waste unmanufactured Wool, sheeps's and lambs', raw Wool noils Wool waste (not pulled or garnetted) Wool flocks Woollen and hair rags,

In addition the following commodities (hitherto mainly imported on Government account) revert to import on private account and will be permitted to be imported freely from "soft currency" sources:- (1)wood pulp, paper and board (other than newsprint and insulation board), and paper and board products; from 1 April, 1950. (ii) oranges and grapefruit, from 7 May, 1950. (iii) hardwood, from 16 January, 1950. (iv) cattle hides and calfskins, from 1 January, 1950. Imports from "soft currency" sources of items, (i) and (ii) will be admitted under Open General Licences and of items (iii) and (iv) (for statistical and administrative reasons) under Open Individual Licences. ANNEXIV Value (£ million)(c.i.f) l Percentage of total imports DISTRIBUTIONOFUNITEDKINGDOMIMPORTSBYMAINSOURCES OF SUPPLY Main Sources - GATT/CP/621938,1948,&1949(JAN-SEPT) Jan.-Sept. JanSept. 1938 1948 1949 1938 1948 1949 Ann. Rate j Ann. Rate. Page207

U.S. and Possessions 118.2 184.4 221.9 I 12.9 ' 8.9 9.8 Canada81.3 223.0 1 225.4 8.8. 10.7 9.9 Account Countries 15.5 56.3 53.3 American 1.7 2.7 2.3 UNITEDKINGDOM(Continued) Other Western Hemisphere 61.6 168.6 125.2 6.7 8.1 5.5

Sterling Area 286.9 749.0 851.7 31.2 36.0 37.5 O.E.E.C. & Possessions 226.6 434.6 546.8 24.7 20.9 24.1 Rest of World 129.4 263.6 248.2 14.0 12.7 10.9

TOTAL 919.5 2,079.5 2,272.5 100.0 100.0 100.0 GATT/CP/62 page 208 UNITED KINGDOM (continued) ANNEX COMMODITY ANALYSIS

NOTE: Thefellowing Tablegive a general indication of the import control in inforcerelation to the main goodsimported into the UnitedKingdom. The classification used isthestandard one of the UnitedtypesofKingdom Import and Export Lists. Column 3 indicates,in relation to each of the main commodity groups, the mainmethod or methods of import control applied to the group in question, by reference to the four categories (I to IV) set out In Answer to Q.4 in the main paper. Column 4 gives similar details in respect of certain large individual items within certain groups; the figure. in brackets after much items Indicate 1948 imports in £m.

U.K. Imports Import Licensingcotegory of Class and Group 1948 categories within Remarks (c.i.f.)£m. which group mainlyfalls 1 2 3 4

B. Feeding-stuffe for animals 24 I - C. Animals, living, for food 12 I,II & III Live octtle (II) (the bulk of Imports of which has always come from Ireland) aro imported from the Irish Hepublic under O.G.L., and from other sources I; Class1.Wood,drinkandtobaceoA.Grainandflour 201I- sheep, goats, and awine II. D. Meat 126 I - E. Dairy Produce 132 I - F. Freshfruit and vegetables 97 III Apples andbananas(7)I; nearly all othersIII. Some O.G.L'sare liable to suspension during certain seasonal periods. G. Beverages and seede preparations 113 Various Tea (56), cocoa (22) and coffee (6) all I; imports of toa and coffee for re-export admitted under O.I.L's issued to members of the commodity markets; Wines and spirits (20) IIl. H. Other food 140 Various, but Fresh fish (most types)(13) III; mostly I Dried fruit (8) I; Canned fruit (3) l; lard and other animal fats (8) l; Sugar (59) I; Molasses (5) I. I. Tobacco 43 IV -

Total of ClassI 888 - -

Class2. Raw Materials and articles mainly unmanufactured.

A. Coal 17 United Kingdom imports of coal and coke (Group 3A) are of coursesmall(these items being classed as sceparate groups in the Import and export Lists buceause of theirimportanee in the United Kingdom export trade): such imports as there are, are imported under Open Licence by the National Coal Board. B. Other non-metalliforous mining and quarry products and the like 0.4 I Various- GATT/CP/62 Page 209 UNITED KINGDOM (continued)

Import Lisensing U.K. Imports category or Class and Group 1948 sgatagories within Remaks £m.(c.i.f.) which group mainlyfalls

1234

C. Iron are and scrap 28 III - D. Non-ferrous metalliteious ores and scrap 34 Various, mostly III - E. Wood and timber 33 I and III Hardwood (16) III (sesAnnex III); Softwood (51) and Pitprops (13) I. F. Raw Cotton and cotton waste 107 I Raw Cotton (103) I (imported by I Raw Cotton Cammimsion); Cotton Waste (2) III; Cotton linters (2) IV. G. Wool, raw and waste, and woollen rags 89 III - H. Silk, raw and wate,and artificial silk waste 2 III Imports of raw silk come mostly from Japan, under individual

I. Other textile materials 25 Various Jute (9) I, Flax (7) III. J. Seede and nuts for oil, oils, fats, resins and gums 144 I & IV Crude petroleum (31) IV; others (mainly oilseeds and vegetable oils) mostly I. K. Hides, and skins,undressed 35 III & IV Cattle hides and oalf skins (16) III (see Annex III); Furskins (8) IV (mostly under O.I.L's issued to members of the fur market). L. Paper-making materials 52 III As from April 1950 M. Rubber 30 III - N. Other raw materials 27 Various Manyitems III

Total of Class 2 683 -

Class 3.Articles wholly or mainlymanufactured A. Coke 0.1 IV See note on Class 2, Group A. B. Pottery, glass abrasives, ete, 6 III & IV Undecorated pottery mostly III; others mostly IV. C, Iron and steel and manufactures thereof 20 Finished steel (12) mainly I; others mostly IV. D. Non-ferrous metalsandmanufactures thereof I & IV Aluminium (II), copper (46) and lead (14) I; others mostly IV. E. Cutlery, hardware,implementsand instrumonts 7 III & IVIII F. Electricalgoods and apperatus 9

G. MachinoryH.Manufacturesofwoodandtimber III & IV According to types;mostlyIII; others IV. Plywood (e) I; furniture (2) and most other typesIV. GATT/CP/62 Page 210 UNITED KINGDOM (continued)

Import Lisensing U.K. Imports oategoty or Classand Goup categories withinRemarks 1948 which group mainly (c.i.f.) falls 1 2 3 4

I. Cotton yarns and manufactures 23 III - J. Wollen and worsted yarms 17 III - K. Silk and artificial silk yarms andmanufactures 8 III Moetly artificial silks;silk goods (0.3) IV. L. Other textile manufactures 23 Various Jute goods (16) I; others III & IV. M. Apparel 3 III Silk apparel IV. N. Footwear 2 III - O. C;v*Xs6 drugs, dyes and colours 31 Various Mainly III. P. Oils, flats and resins, manufactured 130 IV Mostly petrol, oil and lubricants. Q. Leather and manufactures thereof 9 IV - R. Paper, cardboard, ete. 24 III Most types III as from April, 1950; Newsprint (4) IV. S. Vehicles, ships and aireraft 12 III & IV Alroraft (6) III T. Rubber manufactures 0.2 III U. Miscellansous manufactures 22 III & IV Most types III

Total of Class 3 485 - -

Class 4. Animal, not for food 8 III Horses (6) III; others IV.

Class 5. Parcel post 16 Various Includes a large proportion of (a) books & periodicals in single copies imported under world O.G.L., and (b) bona fide gifts and trade camples (admitted fromall sources under administrative control by H.M. Customs).

TOTAL OF CLASSES 1 - 52,080 -