Evening star., 1948-04-25

Id interests. More or less full-dress
IRE held in London, New York and
own strength, we have recently de-
cided to establish an ERP to put
them on their feet industrially and
agriculturally so that they will be
on our charity list for .as short a
time as possible.
If the European Recovery Pro-
gram is successful it is hoped that .
basis will then exist for something
like a return to the 18th century
multilateral trading system. The
nations comprising the trading COM
munity would then no longer find
it necessary to channel exports and
imports so as to balance their inter-
national accounts bilaterally, nor
maintain foreign exchange rates at
levels that make ordinary trade
difficult, if not impossible. They
would no longer find 1t necessary to
discriminate.
The International Trade Char
ter provides a code of commercial
behavior to which, it is hoped, the
nations of the world will ultimately
find it possible to adhere. The ex-
cepting clauses are many, but the
statement of objectives, at least, is
clear.
Methods Controversial
Those objectives are to raise living
standards throughout the world by
promoting the expansion of trade
on nondiscriminatory basis and
by encouraging the economic de-
velopment of backward areas. At
Havana, as at Geneva, there was
much controversy regarding the
methods by which these ideals are
to be achieved. To analyze the ar
guments and the motives underlying
them would require many pages OF
subtle discussion. The language OF
some of the compromise articles, in.
deed, is almost unintelligible and
defies analysis.
Some of the so-called underdevel-.
oped countries fought vigorously at
Havana to retain the right to enter
into preferential Gin essence, dis
criminatory) trading arrangements
as a means of stimulating their in
dustrial growth. Since the Charter
does not require countries presently
parties to preferential arrangements
(among them the British Common
wealth, the United States, France.
Belgium. PortugaD to abandon these
arrangements, but merely requires
that they negotiate for their elimi-
nation, it was difficult for the rep
resentatives of some of the lesser
developed countries to understand
why they should be denied the right
to establish new preferences OF their
own.
The resulting compromise is Q
masterpiece of complicated phrase
ology. Out of it ali, however,
emerges the fact which has been
patent all along. Neither the pro-
posed ITO nor any other of the
international agencies that have
been established since the war can
really act. They are not auton-
omous. Being international rather
than world organizations, they are
the servants of their national mem
bers and, in world of sovereign
states, that is all that they can be
expected to be.
international organizations can
advise. They can provide forums
for discussions among their MEM
bers. And, most important of all,
perhaps, they can bring the pres
sure Of world opinion to bear on
fragrant violations of international
agreements.
ITO Sanctions Will Be Weak
The only immediate sanction that
international organizations like the
ITO can exercise other than the
marshaling of public opinion, is de-
nial of the privileges of membership.
In the case of the ITO, however.
even this will be of doubtful efficacy
since the revised article covering
relations between members and nom
members has been so watered down
that members are not even required
to deny INSTRUMENTATION treat
ment to nonrnembers.
But, If the ITO Charter consists
of "a few laudable principles and
dozens of escape clauses" it does
not mean that the many months Of
effort that have gone into its cre-
alton have been wasted. There has
at least been agreement as to OBJ
jective. And, if economic condi-
tions in the world improve, there is
reason to believe that what are now
hopes might come closer to reality.
One sometimes wonders what
would emerge from an international
conference convened for the pur-
pose of putting the Golden Rule
into the form of an international
agreement The eleven words would
rapidly multiply into 11,o00, and all
sorts Of exceptions would be in
cluded to care for temporary and
extenuating circumstances. None
the-less, even with the Safeguards"
the rule would still be good one.
Golden rules and international
charters-even the ITO-lose none
of their ultimate significance be-
cause individuals and nations find
it inconvenient for the present to
observe them. .Agreed-to state
ments of objectives help us, at least.
to Judge from moment to moment
whether we are moving forward or
backward.
The ITO charter is the result OF
a l. L. I@<.e