which the price for an imported product charged by the monopoly in the home market may exceed the landed cost, before payment of any duty, of such product purchased by the monopoly from suppliers in the territories of Members; or

(b) in the case of an export monopoly, the maximum margin by which the price for a product charged by the monopoly to purchasers in the territories of such Members may exceed the price for such. product charged by the monopoly in the home market after due allowance, in either case for internal taxes, transportation, distribution and other expenses incident to purchase; sale or further processing, and a reasonable margin of profit. For the purpose of applying these margins regard may be had, in respect of imports, to average landed costs and selling prices of the monopoly and, in respect of exports, to average prices charged by the monopoly for exports and sales in the home market respectively, over recent periods.

2. Members newly establishing any such monopoly in respect of any product shall not create a margin as defined above greater than that represented by the maximum rate of import or export duty which may have been negotiated in regard to that product pursuant to Article 24. With regard to any monopolized product in respect of which a maximum margin has been established pursuant to this article, the monopoly shall as far as practicable and subject to the other provisions of this Charter

(i) import from Members and offer for sale at prices charged within such maximum margins such quantities of the product as will be sufficient to satisfy the full domestic demand for the imported product, account being taken of any rationing of the product to consumers which may be in force at that time, and

(ii) in the case of an export monopoly, offer for sale to purchasers in the territories of Members at prices charged within such maximum margins quantities of the product to the fullest extent that they can be made available for exportation. ·

3. In applying the provisions of this article, due regard shall be had for the fact that some monopolies are established and operated solely for revenue purposes.

Article 33. Expansion of Trade by Complete State Monopolies of Import Trade

[Any Member establishing or maintaining a complete or substanti-ally complete monopoly of its import trade shall promote the expansion of its foreign trade with the other Members in consonance with the purposes of this Charter. To this end such Member shall negotiate with the other Members an arrangement under which, in conjunction with the granting of tariff concessions by such other Mem-bers, and in consideration of the other benefits of this Chapter, it

shall undertake to import in the aggregate over a period products of the other Members valued at not less than an amount to be agreed upon. This purchase arrangement shall be subject to periodic adjustment.]

SECTION F. Emergency Provisions-Consultation

Article 34. Emergency Action on Imports of Particular Products

1. If, as a result of unforeseen developments and of the effect of the obligations incurred under or pursuant to this chapter, any product is being imported into the territory of any Member in such increased quantities and under such conditions as to cause or threaten serious injury to domestic producers of like or similar products (or, in the case of a product which is the subject of a concession with respect to the preference, to producers in a territory which receives or received such preference), the Member shall be free to withdraw the concession, or suspend the obligation, in respect of such product, in whole or in part, or to modify the concession to the extent and for such time as may be necessary to prevent such injury.

2. Before any Member shall take action pursuant to the provisions of paragraph 1, it shall give notice in writing to the Organization as far in advance as may be practicable and shall afford the Organization, and the other Members having a substantial interest as exporters of the product concerned, an opportunity to consult with it in respect of the proposed action. In critical and exceptional circumstances such action may be taken provisionally without prior consultation: Provided: That consultation shall be effected immediately following upon the taking of such action. If agreement among the interested Members with respect to the action is not reached, the Member which proposes to take or continue the action shall, nevertheless, be free to do so, and if such action is taken or continued the other affected Members shall then be free, not later than 60 days after such action is taken, to suspend, upon the expiration of 60 days from the date on which written notice of such suspension is received by the Organization, the application to the trade of the Member taking such action, of such substantially equivalent obligations or concessions under this chapter the suspension of which the Organization does not oppose. In serious cases the Organization may authorize an affected Member to suspend concessions or obligations in addition to those which may be substantially equivalent to the action originally taken.

Article 35. Consultation Nullification or Impairment

1. Each Member will accord sympathetic consideration to, and will afford adequate opportunity for consultation regarding, such representations as may be made by any other Member with respect to the

operation of customs regulations and formalities, quantitative and exchange regulations, 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 chapter. 2. If any Member should consider that any other Member has adopted any measure, whether or not it conflicts with the terms of this Charter, or that any situation has arisen, which has the effect of nullifying or impairing any object of this Charter, the Members concerned shall give sympathetic consideration to such written representations or proposals as may be made with a view to effecting a satisfactory adjustment of the matter. If no such adjustment can be effected the matter may be referred to the Organization, which shall, after investigation, and if necessary after consultation with the Economic and Social Council of the United Nations and any other appropriate intergovernmental organization, make appropriate recommendations to the Members concerned. The Organization, if it considers the case scrious enough to justify such action, may authorize a Member or Members to suspend the application to any other Member or Members of such specified obligations or concessions under this Chapter as may be appropriate in the circumstances. If such obligations or concessions are in fact suspended, any affected Member shall then be free, not later than 60 days after such action is taken, to withdraw from the Organization upon the expiration of 60 days from the date on which written notice by the Organization of such withdrawal is received.

SECTION G. Relations With Non-Members

Article 36. Contractual Relations With Non-Members--Treatment of Trade of Non-Members

[1. No Member shall seek exclusive or preferential advantages for its trade in the territory of any non-Member which would result, directly or indirectly, in discrimination in that territory against the trade of any other Member.

[2. No Member shall be a party to any agreement or other arrangement with any non-Member under which such non-Member shall be contractually entitled to any of the benefits under this Charter.

[3. With regard to countries which, although eligible for membership, have not become Members or have withdrawn from the Organization, no Member shall, except with the concurrence of the Organization, apply to the trade of such countries the tariff reductions effected by such Member pursuant to Article 24. This paragraph shall become effective upon the expiration of one year from the date on which the Organization is established: Provided, That this period may be extended by the Organization for further periods not to exceed six months each.

[4. Members undertake to review any international obligations they may have which would prevent them from giving full effect to paragraphs 1 and 2 of this Article and, if necessary for that purpose, to terminate such obligations either by agreement or in accordance with their terms.]

SECTION H. General Exceptions

Article 37. General Exceptions to Chapter V

[Nothing in Chapter V of this Charter shall be construed to prevent the adoption or enforcement by any Member of measures

[(a) necessary to protect public morals;

[(b) necessary to protect human, animal or plant life or health; [(c) relating to fissionable materials;

[(d) relating to the traffic in arms, ammunition and implements of war and to such traffic in other goods and materials as is carried on for the purpose of supplying a military establishment;

[(e) in time of war or other emergency in international relations, relating to the protection of the essential security interests of a Member;

[(f) relating to the importation or exportation of gold or silver;

[(g) necessary to induce compliance with laws or regulations which are not inconsistent with the provisions of Chapter V, such as those relating to customs enforcement, deceptive practices, and the protection of patents, trade-marks and copyrights;

[(h) relating to prison-made goods;

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

relating to the conservation of exhaustible natural resources if such measures are taken pursuant to international agreements or are made effective in conjunction with restrictions on domestic production or consumption;

(k) undertaken in pursuance of obligations under the United Nations Charter for the maintenance or restoration of international peace and security; or

.

[) imposed in accordance with a determination or recommendation of the Organization formulated under paragraphs 2, 6 or 7 of Article 66.1

SECTION I. Territorial Application

Article 38. Territorial Application of Chapter V-Customs Unions-Frontier Traffic

1. The provisions of Chapter V shall apply to the customs territories of the Member countries. If there are two or more customs territories under the jurisdiction of any Member, each such customs

territory shall be considered as a separate Member country for the purpose of interpreting the provisions of Chapter V.

2. The provisions of Chapter V shall not be construed to prevent (a) advantages accorded by any Member country to adjacent countries in order to facilitate frontier traffic; or

(b) the formation of a union for customs purposes of any customs territory of any Member country and any other customs territory: Provided, that the duties and other regulations of commerce imposed by any such union in respect of trade with other Member countries shall not on the whole be higher or more stringent than the average level of the duties and regulations of commerce applicable in the constituent territories prior to the formation of such union.

3. Any Member proposing to enter into any union described in subparagraph 2 (b) shall consult with the Organization and shall make available to the Organization such information regarding the proposed union as will enable the Organization to make such reports and recommendations to Members as it may deem appropriate.

4. The Members recognize that there may in exceptional circumstances be justification for new preferential arrangements requiring an exception to the provisions of Chapter V. Any such exception shall be subject to approval by the Organization pursuant to paragraph 2 of Article 66.

5. For the purpose of this Article a customs territory shall be understood to mean any area within which separate tariffs or other regulations of commerce are maintained with respect to a substantial part of the trade of such area. A union of customs territories for customs purposes shall be understood to mean the substitution of a single customs territory for two or more customs territories, so that all tariffs and other restrictive regulations of commerce as between the territories of Members of the union are substantially eliminated and substantially the same tariffs and other regulations of commerce are applied by each of the Members of the union to the trade of territories not included in the union.

CHAPTER VI. RESTRICTIVE BUSINESS PRACTICES

Article 39. Policy Toward Restrictive Business Practices

1. Members agree to take appropriate measures, individually and through the Organization, to prevent, in international trade, business practices which restrain competition, limit access to markets, or foster monopolistic control whenever such practices have harmful effects on the expansion of production and trade and the maintenance in all