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conditions prevail, or a disguised restriction on international trade, nothing in this Agreement shall be construed to prevent the adoption or enforcement by any contracting party of measures: I. (a) necessary to protect public morals;

(b)

necessary to protect human, animal or plant life

or health;

(c)

relating to the importation or exportation of gold or silver;

(a) necessary to secure compliance with laws or
regulations which are not inconsistent with the
provisions of this Agreement, including those relating
to customs enforcement, the enforcement of monopolies
operated under paragraph 4 of Article II and Article
XVII, the protection of patents, trade marks and copy-
rights, and the prevention of deceptive practices;
relating to the products of prison labour;

(e)

(f) imposed for the protection of national treasures of artistic, historic or archaeological value;

(g) relating to the conservation of exhaustible natural
resources if such measures are made effective in

conjunction with restrictions on domestic production or
consumption;

(h) undertaken in oursuance of obligations under inter-
governmental commodity agreements, conforming to the
principles approved by the Economic and Social Council
of the United Nations in its Resolution of March 28,
1947, establishing an Interim Co-ordinating Committee
for International Commodity Arrangements; or

(1)

II. (a)

involving restrictions on exports of domestic materials necessary to assure essential quantities of such materials to a domestic processing industry during periods when the domestic price of such materials is held below the world price as part of a governmental stabilization plan; Provided that such restrictions shall not operate to increase the exports of or the protection afforded to such domestic industry, and shall not depart from the provisions of this Agreement relating to non

discrimination;

essential to the acquisition or distribution of products in general or local short supply; Provided that any such measures shall be consistent with any multilateral arrangements directed to an equitable international distribution of such products or, in the absence of such arrangements, with the principle that all contracting parties are entitled to an equitable share of the international supply of such products;

(b) essential to the control of prices by a contracting party undergoing shortages subsequent to the war; or

(c) essential to the orderly liquidation of temporary surpluses of stocks owned or controlled by the government of any contracting party or of industries developed in the territory of any contracting party owing to the exigencies of the war which it would be uneconomic to maintain in normal conditons; Provided that such measures shall not be instituted by any contracting party except after consultation with other interested contracting parties with a view to appropriate international action.

Measures instituted or maintained under part II of this Article which are inconsistent with the other provisions of this Agreement shall be removed as soon as the conditions giving rise to them have ceased, and in any event not later than January 1, 1951; Provided that this period may, with the concurrence of the CONTRACTING PARTIES, be extended in respect of the application of any particular measure to any particular product by any particular contracting party for such further periods as the CONTRACTING PARTIES may specify.

Article XXI

Security Exceptions

Nothing in this Agreement shall be construed

(a) to require any contracting party to furnish any information

the disclosure of which it considers contrary to its essential security interests;

or

(b) to prevent any contracting party from taking any action
which it considers necessary for the protection of its
essential security interests

(1) relating to fissionable materials or the materials

from which they are derived;

(11) relating to the traffic in arms, ammunition and
implements of war and to such traffic in other
goods and materials as is carried on directly or

indirectly for the purpose of supplying a military
establishment;

(111) taken in time of war or other emergency in inter

[blocks in formation]

(c) to prevent any contracting party from taking any action

in pursuance of its obligations under the United Nations

Charter for the maintenance of international peace and
security.

Article XXII

Consultation

Each contracting party shall accord sympathetic consideration to, and shall afford adequate opportunity for consultation regarding, such representations as may be made by any other contracting party with respect to the operation of customs regulations and formalities, anti-dumping and countervailing duties, quantitative and exchange regulations, subsidies, state-trading operations, sanitary laws and regulations for the protection of human, animal or plant life or health, and generally all matters affecting the operation of this Agreement.

Article XXIII

Nullification or Impairment

1. If any contracting party should consider that any benefit accruing to it directly or indirectly under this Agreement is being nullified or impaired or that the attainment of any objective of the Agreement is being impeded as the result of (a) the failure of another contracting party to carry out its obligations under this Agreement, or (b) the application by another contracting party of any measure, whether or not it conflicts with the provisions of this Agreement, or (c) the existence of any other situation, the contracting party may, with a view to the satisfactory adjustment of the matter, make written representations or proposals to the other contracting party or parties which it considers to be concerned. Any contracting party thus approached shall give sympathetic consideration to the representations or proposals made to it.

2.

If no satisfactory adjustment is effected between the contracing parties concerned within a reasonable time, or if the difficulty is of the type described in paragraph 1 (c) of this Article, the matter may be referred to the CONTRACTING PARTIES. The CONTRACTING

PARTIES shall promptly investigate any matter so referred to them and shall make appropriate recommendations to the contracting parties which they consider to be concerned, or give a ruling on the matter, as appropriate. The CONTRACTING PARTIES may consult with contracting parties, with the Economic and Social Council of the United Nations and with any appropriate inter-governmental organization in cases where they consider such consultation necessary. the CONTRACTING PARTIES consider that the circumstances are serious enough to justify such action, they may authorize a contracting

If

party or parties to suspend the application to any other contracting party or parties of such obligations or concessions under this Agreement as they determine to be appropriate in the circumstances. If the application to any contracting party of any obligation or concession is in fact suspended, that contracting party shall then be free, not later than sixty days after such action is taken, to advise the Secretary-General of the United Nations in writing of its intention to withdraw from this Agreement and such withdrawal shall take effect upon the expiration of sixty days from the day on which written notice of such withdrawal is received by him.

79125 0-48-vol. 1-5

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