Evening star., 1947-11-02

international conference been so
carefully laid as it has for the
Havana meeting. Back in Decem-
Der, 1e45, after many months Of
Intensive technical work based upon
studies conducted through the war
wears. the United States submitted
to other nations formal proposals
for creation of an international
trade organization and agreement
on a code of conduct in interna-
tional commercial relations.
The American initiative led the
United Nations Economic and Social
Council, at its first meeting in Feb
ruary, 1s4e, to call for q world con-
ference and to set up preparatory
committee of 10 nations to arrange
for the the conference and draft an
International Trade Organization
charter for consideration by the con-
ference. This committee held Its
first session In London In october,
1s46, turning out a draft charter
based on the American proposals. 1t
agreed to meet again in Geneva last
April.
Public Hearings Held
In preparation for the Geneva
meeting, the United States Govern
ment held public hearings on the
London charter in seven cities dur
ing last February and March. Work
ing from April to August at Geneva
the U. N. committee rewrote the
London charter draft, embedying
many changes suggested by business
and civic organizations during the
public hearings in this country. The
document completed at Geneya Is
the one to be submitted to the Ha-
vana Conference.
Nations which took part in the
Geneva meeting and other sessions
of the preparatory committee are
the United States, Australia, Bel
GUM, Brazil, Canada, Chile, China,
Cuba, Czechoslovakia. France, South
Africa and Great Britain. Russia
also was a member of the commit
tee, but did not participate.
Between so and go nations are ex-
pected to take part in the Havana
Conference. Russia was invited but
will not attend.
The charter drafted at Geneva
naturally represents much COM
promise. More compromises prob
ably will be necessary to get wide
agreement at Havana. But Ameri-
can officials look for no change in
the basic principles set forth In the
Geneva draft. Aside from the ar
ticles dealing with quantitative re-
strictions on imports and exports,
major provisions of the proposed
charter may be summarized as
follows:
Moderate Tariff Goal
/. ITO members pledge themselves
to carry out negotiations directed,
toward substantial reduction Of
tariffs. The aim is to reduce tariffs
to moderate levels, not to abolish
them entirely. The system would
remain as a method Of controlling
imports consistent with the preser-
vation Of free enterprise. Tariff
cuts will operate to reduce or elimi-
nate margins Of preference in such
arrangements as the British COM
monwealth preference trading sys-
tenn. Any tariff concessions granted
by an ITO member to another men,
ber automatically will extend to
all other MEMBERSHIP most-fa-
vored- nation principle. An escape
clause" will enable a member to
suspend any tariff concessions that
result in slch sharp increases in
imports as to cause serious injury
to domestic producers.
2. Members must not nullify tariff
cuts by employing restrictive meth
ods of customs administration, by
imposing discriminatory internal
taxes or by resorting to other hidden
forms of protection.
3. State trading enterprises-that
Is, goyernment-owned or fostered
monopolies-must follow rules SINH
lar in effect to those for private
trade. Their foreign buying and
selling must be based on CONNER
cial considerations, giving opportu-
nifty for competition.
Further Pledges
4. International cartels are to be
judged by their effects. Members
pledge themselves to prevent busi-
ness practices in international trade
which restrain competition, limit
access to markets or foster monop-
olistic control" whenever such prac-
tices "have harmful effects on the
expansion of production or trade"
One member may complain to the
ITO If 1t considers trade practices
permitted by another have such ef-
fects. The ITO then can hold hear
ings and make recommendations to
the offending member. If such rec
concentrations are ignored, other
members may take away tariff and
other concessions from the Offend
ing member.
5. Inter governmental agreements
regulating production and distribu-
ton of commodities must be con-
fined in general to primary COM
modities. and be open to participa-
ton by any ITO member.
6. Each member agrees to take
action designed to achieve and
maintain full and productive en-
ployment.
7. Members shall cooperate In
promoting general economic devel-
opment. So-called backward"
countries will be free to subsidize
new industries, and may Seek ITO|
permission to protect development