Evening star. [volume] (Washington, D.C.) 1854-1972, 1947-08-24
Trade Session Ends
After Adopting Charter
Full Of Loopho|es i
BY The Associated Press

GENEVA, Switzerland, Aug. %
The International Trade Organiza-
ton Preparatory Committee recessed
today after adopting a trade char
ter riddled with reservations ano
escape clauses, loopholes of which
Britain, for one, announced she in
tended to take full advantage.
j. Harold Wilson, British secretary
for overseas trade, told a plenary
meeting of the Preparatory Com
mittee that in, view of his govern
ment's econom1c difficulties: THE
methods we may have to use In
the intervening months and years
may appear to be opposed to the
principles and methods of the draft
charter"
Virtually every delegate of the II
nations represented on the commit
tee expressed general satisfaction
with the charter of the proposed
organization adopted yesterday in
closed session, but each invariably
added that, it did not fully meet his
nations needs 1t seems inevitabl
that there will be further tinkering
with the charter when it is pre-
sented for the approval of the world
trade conference to be held at
Havana, Cuba, in November.
Aimed at Tariff Barriers.
Undeveloped countries want pro-
lection for infant industries. I'M
poverlShed countries want to keep
their preferential arrangements and
import quotas. Moneyed countries
want protection for. their invest
ments abroad. +.'.F.
The original purpose of the char
terss conceived blythe United States,
was to rid the United Nations of
tariff barriers, import quotas and
preferential systems as a contribu-
ton to world peace.
The 4,000-word document drafted
here--the product of seven months
OF negotiation at Lake Success. N. Y
London and Geneva-cannot posi-
bly, become effective until late in
1913.
Brftain's reservations to the aims
OF the charter are based on her con-
tentlon that in her present tight
spot she must strengthen. rather
than weaken, her economic ties with
other countries of the British COM
monWealth through the preferential
trading system opposed by the
United States.
Mr.. Wilson reviewed his countries
troubles and asserted: I'VE should
not bring discredit on the funda-
mental principles of nondiscrimina-
tory muiti-lateral trading by at
tempting to move too far and too
fast i'll this difff6cult situation"
Loopholes in Charter.
Among the loopholes:
A nation in balance-of payment
difficulties can be exempted from
certain nondiscriminatory clauses
in the charter.
The international monetary fund
can decide whether a nation is SO
low in monetary affairs that it can
not carry out its obligations to an
other member of the organization.
But, in the International monetary
fund, the United States, with 81
per cent OF the voting power, holds
the whip hand.
The ultimate "out" for all nations
concerned is the fact that the trade
organization charter approved at
Havana still must be ratified by the
parliamentS of all member nations,
NegotiatorS argued that it was bet
ter to have loosely woven charter
drafted here in order to attract as
many members as possible. includ-
ing those with state monopoly trad
ing systems. Although the II coun-
tries represented here claim 63 per
cent of the worlds international
trade, the preparatory committee
made bid for Russian participation
in the Havana meeting, which is ex-
pected to be attended by represent
tatiVeS of approximately so nations