measures which may be available, and the possible effects of such measures on the economies of other Members. The Organization shall invite the International Monetary Fund to participate in the consultations. No Member shall be required during such discussions to indicate in advance the choice or timing of any particular measures which it may ultimately determine to adopt.

(b) The Organization may at any time invite any Member which is imposing import restrictions under paragraphs 1 and 2 to consult with it about the form and extent of the restrictions, and shall invite a Member substantially intensifying such restrictions to consult accordingly within 30 days. Members agree to participate in such discussions when so invited. In the conduct of such discussions - the Organization shall consult the International Monetary Fund and any other appropriate intergovernmental organizations, in particular in regard to the alternative methods available to the Member in question of meeting its balance of payments difficulties. The Organization under this subparagraph shall, within two years of its institution, review all restrictions existing at its institution and subsequently maintained under paragraphs 1 and 2.

(c) Any Member applying or intending to apply restrictions on imports under paragraphs 1 and 2 may, if it so desires, consult with the Organization with a view to obtaining the previous approval of the Organization for restrictions which it intends to maintain or to impose or for the maintenance or imposition in the future of restrictions under specified conditions. The Organization shall invite the International Monetary Fund to participate in the consultations. As a result of such consultations, the Organization may approve in advance the maintenance, imposition, or intensification of import restrictions by the Member in question so far as the general extent, degree, and duration of the restrictions are concerned. To the extent to which such approval has been given, the action of the Member imposing restrictions shall not be open to challenge under subparagraph (d) so far as it relates to conformity with paragraphs 1 and 2.

(d) Any Member which considers that any other Member is applying import restrictions under paragraphs 1 and 2 in a manner inconsistent with the provisions of those paragraphs or of articles 27 or 28, or in a manner which unnecessarily damages its commercial interests, may bring the matter for discussion to the Organization. The Member imposing the restrictions shall then participate in discussion of the reasons for its action. The Organization shall, if it is satisfied that there is a prima facie case that the complaining Member's interests are adversely affected, consider the complaint. It may then, after consultation with the International Monetary Fund on any matter falling within the competence of the Fund, recommend the withdrawal or modification of restrictions which it determines are being applied in a manner inconsistent with the provisions of paragraphs

1 and 2 or of articles 27 or 28, or in a manner which unnecessarily damages the commercial interests of another Member. If restrictions are not withdrawn or modified in accordance with the recommendation of the Organization within 60 days, such other Members shall be released from such obligations incurred under this Charter towards the Member applying the restrictions as the Organization may specify.

(e) The Organization in reaching its decision under subparagraph (d) shall not recommend the withdrawal or general relaxation of restrictions on the ground that the existing or prospective balance of payments difficulties of the Member in question could be avoided by a change in that Member's domestic employment, reconstruction, development, or social policies. Members agree, however, that in carrying out such domestic policies they will pay due regard to the need to restore sound and lasting equilibrium in their balances of payments.

4. In giving effect to the restrictions on imports imposed under this article, a Member may select imports for restriction on the grounds of essentiality in such a way as to promote its domestic employment, reconstruction, development, or social policies. In so doing the Member shall avoid all unnecessary damage to the commercial interest of other Members and will accept an invitation to consult with any other Member which considers its interests to be so damaged.

5..If there is persistent and widespread application of quantitative import restrictions under this article, indicating the existence of a general disequilibrium which is restricting international trade, the Organization shall seek consultation with the International Monetary Fund. The Organization may then, in collaboration throughout with the International Monetary Fund, initiate discussions to consider whether other measures might not be taken, either by those countries whose balances of payments are under pressure or by those countries whose balances of payments are tending to be exceptionally favorable, or by any appropriate intergovernmental agency or organization to remove the underlying causes of the disequilibrium. Members agree that they will take part in such discussions.

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6. Throughout this section the phrase "quantitative import restrictions" includes the restriction of imports by state-trading organizations to an extent greater than that which would be permissible under article 32 (provided that no Member shall be required to disclose information which would hamper the commercial operations of such a state-trading organization).1

'The words "intergovernmental agency or organization" are intended to cover the Economic and Social Council of the United Nations.

'The Preparatory Committee recommended that the words in parentheses should be retained only if the matter is not adequately covered in the articles dealing with state-trading organizations.

7. Members recognize that in the early years of the Organization all of them will be confronted, in varying degrees, by problems of economic adjustment resulting from the war. During this period the Organization shall, when required to take decisions under this article or under article 28, take full account of the difficulties of post-war adjustment.

Article 27. Nondiscriminatory Administration of Quantitative

Restrictions

1. Subject to the provisions of article 28, no prohibition or restriction shall be applied by any Member pursuant to this section on the importation of any product of any other Member, or on the exportation of any product destined for any other Member unless the importation of the like product of all third countries, or the exportation of the like product to all third countries, is similarly prohibited or restricted.

2. Pursuant to the principle set forth in paragraph 1, Members undertake in applying import restrictions to observe the provisions:

(a) Wherever practicable, global quotas (whether allocated among supplying countries or not) should be fixed, and notice given of their amount in accordance with subparagraph 3 (b).

(b) Where global quotas are not practicable, import restrictions may be applied by means of import licenses without a global quota. (c) Import licenses or permits which may be issued in connection with import restrictions (whether or not within the limits of global quotas) shall not, save for purposes of operating quotas allocated in accordance with subparagraph (d), require or provide that the license or permit be utilized for the importation of the product concerned from a particular country or source.

(d) In cases where these methods of licensing are found impracticable or unsuitable, the Member concerned may apply the restrictions in the form of a quota allocated among supplying countries. In that event, the shares of the various Member supplying countries should in principle be determined in accordance with commercial considerations, such as e.g., price, quality, and customary sources of supply. For the purpose of appraising such commercial considerations, the Member applying the restrictions may seek agreement with respect to the allocation of shares in the quota with all other Members having substantial interest in supplying the product concerned. In cases where this method is not reasonably practical, the Member concerned should allot, to Member countries having a substantial interest in supplying the product, shares based upon the proportions of the total quantity or value of the product supplied by such Mem

ber countries during a previous representative period, due account being taken of any special factors which may have affected or be affecting the trade in the product.

(e) No conditions or formalities shall be imposed which would prevent any Member country from utilizing fully the share of any such total quantity or value which has been allotted to it, subject to importation being made within any prescribed period to which the quota may relate.

3. (a) In cases where import licenses are issued in connection with import restrictions, the Member applying the restriction shall provide, upon the request of any Member having an interest in the trade in the product concerned, all relevant information as to the administration of the restriction and as to the import licenses granted over a past recent period and on the distribution of such licenses among supplying countries; Provided, however, that there shall be no obligation to supply information as to the names of importing or supplying enterprises.

(b) In the case of import restrictions involving the fixing of quotas (whether or not allocated among supplying countries), the Member applying the restrictions shall give public notice of the total quantity or value of the product or products which will be permitted to be imported during a specified future period, and of any change in such quantity or value.

(c) In the case of quotas allocated among supplying countries, the Member applying the restriction shall promptly inform all other Members having an interest in supplying the product concerned, of the shares in the quota, by quantity or value, currently allocated to the various supplying countries.

4. With regard to restrictions imposed in accordance with subparagraph 2 (d) or under subparagraph 2 (e) of article 25, the selection of a representative period for any product and the appraisal of any special factors affecting the trade in the product shall be made initially by the Member imposing the restriction:

Provided, that such Member shall upon the request of any other Member having a substantial interest in supplying that product, or upon the request of the Organization consult promptly with the other Member or with the Organization regarding the need for an adjustment of the base period selected or for the re-appraisal of the special factors involved.

5. The provisions of this Article shall apply to any tariff quota established or maintained by any Member.

Article 28. Exceptions From the Rule of Nondiscrimination

1. The provisions of this section shall not preclude:

(a) restrictions with equivalent effect to exchange restrictions authorized under article VII, section 3 (b) of the Articles of Agreement of the International Monetary Fund;

(b) prohibitions or restrictions in accordance with subparagraphs 2 (a) (i) or 2 (d) of article 25;

(c) conditions attaching to exports which are necessary to ensure that an exporting country receives for its exports its own currency or the currency of any member of the International Monetary Fund specified by the exporting country;

(d) restrictions in accordance with article 26 which either:

(i) are applied otherwise consistently with article 27 against imports from other countries by a group of territories with common quota in the International Monetary Furd, or

(ii) assist in the period until December 31, 1951, by measures not involving substantial departure from the provisions of article 27, a country whose economy has been disrupted by war, or both

(iii) provide a Member with additional imports above the maximum total of imports which it could afford in the light of the conditions in paragraph 2 of article 26 if its restrictions were consistent with article 27, and

(iv) have equivalent effect to exchange restrictions which are permitted to that Member under the Articles of Agreement of the International Monetary Fund or under the terms of any special exchange agreement which may have been made between the Member and the Organization under article 29. Provided, that a Member which is not imposing restrictions on payments and transfers for current international transactions may apply import restrictions under section (iii) of this subparagraph in special circumstances and only with the prior approval of the Organization in agreement with the International Monetary Fund.

2. If the Organization finds, after consultation with the International Monetary Fund on matters within the competence of the Fund, that import restrictions or exchange restrictions on payments and transfers in connection with imports are being applied by a Member in a discriminatory manner inconsistent with the exceptions provided under this article or in a manner which discriminates unnecessarily against the trade of another Member, the Member shall within 60 days remove the discriminations or modify them as specified by the Organization:

Provided, that a Member may, if it so desires, consult with the Organization to obtain its previous approval for discriminations, under the