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3. The Study Group shall, in the light of an investigation of the root causes of the problem, promptly report its findings regarding the · production, consumption, and trade situation for the commodity.

If the Study Group finds that special difficulties exist or are expected to arise, it shall make recommendations to the Organization as to how best to deal with such difficulties. The Organization shall transmit promptly to Members any such findings and recommendations.

Article 49. Commodity Conferences 1. On the basis of the recommendations of the Study Group, or on the basis of information about the root causes of the problem agreed to be adequate by the Members substantially interested in the production, consumption, or trade of a particular primary commodity, the Organization shall promptly at the request of a Member having a substantial interest, or may, on its own initiative, convene an intergovernmental conference for the purpose of discussing measures designed to meet the special difficulties which have been found to exist or are expected to arise.

2. Any Member having a substantial interest in the production, consumption, or trade of the commodity shall be entitled to participate in the Conference, and non-members having a similar interest may be invited by the Organization.

3. If the Conference recommends to Members the adoption of any type of intergovernmental commodity arrangement, such arrangement shall conform to the principles stated in article 51.

Article 50. Relations With Specialized Agencies 1. Competent specialized agencies, such as the Food and Agriculture Organization, shall be entitled: (a) to submit to the Organization any relevant study of a primary

commodity; (6) to ask that a study of a primary commodity be made.

2. The Organization may request any specialized agency which it deems to be competent to attend or take part in the work of a Study Group or of a Commodity Conference.

Article 51. General Principles of Intergovernmental Commodity

Arrangements Members undertake to adhere to the following principles governing the operation of all types of intergovernmental commodity arrangements:

1. Such arrangements shall be open initially to participation by any Member on terms no less favorable than those accorded to any

other country party thereto and thereafter upon such terms as may be approved by the Organization.

2. Non-members may be invited by the Organization to participate in such arrangements, and the provisions of paragraph 1 shall apply to any non-members so invited..

3. Such arrangements shall include provision for adequate participation of countries substantially interested in the importation or consumption of the commodity as well as those substantially interested in its exportation or production.

4. In such arrangements, participating countries which are largely dependent for consumption on imports of the commodity involved shall, in determinations made relating to substantive matters, have together a voice equal to that of those largely interested in obtaining export markets for the commodity, provided that those countries which are largely interested in the commodity but which do not fall precisely under either of the above classes shall have an appropriate voice.

5. Such arrangements shall provide, where practicable, for measures designed to expand world consumption of the commodity.

6. Members agree that full publicity shall be given to any intergovernmental commodity arrangement proposed or concluded, to the statements of considerations and objectives advanced by the proposing Members, to the operation of the arrangements, and to the nature and development of measures adopted to correct the underlying situation which gave rise to the arrangement. SECTION C. Intergovernmental Commodity Agreements Involv

ing the Regulation of Production, Trade, or Prices Artide 52. Circumstances Governing Use of Regulatory Agreements

Members agree that regulatory agreements may be employed only when:

1. A burdensome surplus of a primary commodity has developed or is expected to develop which, because a substantial reduction in price does not readily lead to a significant increase in consumption nor to a significant decrease in the production of that commodity, would not, in the absence of specific governmental action, be corrected by normal marketing forces alone in time to prevent serious hardship to producers among whom are small producers vho account for a substantial portion of the total output; or

2. Wide-spread unemployment in connection with a particular primary commodity, arising out of difficulties of the kind referred to in article 46, has developed or is expected to develop, which, in the absence of specific governmental action, would not be corrected by normal marketing forces alone in time to prevent wide-spread and undue hardship to workers because, in the case of the industry concerned, a substantial reduction of price does not lead to a significant increase in consumption but to the reduction of employment and because areas in which the commodity is produced in substantial quantity do not afford alternative employment opportunities for the workers involved; or

3. The Organization finds that, for a commodity other than a primary commodity, exceptional circumstances justify such action. Such agreements shall be subject not only to the principles set forth in this chapter" but also to any other requirements which the Organization may establish. Article 53. Additional Principles Governing Regulatory

Agreements Members undertake to adhere to the following principles governing regulatory agreements in addition to those stated in article 51:

1. Members agree not to enter into any new regulatory agreement unless it has been recommended by a conference called in accordance with article 49. Nevertheless, Members substantially interested in the production, consumption, or trade of a particular primary commodity may proceed by direct negotiation to the conclusion of an agreement, provided that it conforms to the other provisions of this chapter, if there has been unreasonable delay in the proceedings of the Study Group or of the Commodity Conference.

2. Under such agreements participating countries shall afford equitable treatment as between non-participating Members and participating countries, giving equitable advantages in return for the observance of equitable obligations.

3. Participating countries shall, in matters the subject of such agreements, afford non-participating Member countries treatment no less favorable than that accorded to any non-member country which does not participate in the agreement.

4. Such agreements shall be designed to assure the availability of supplies adequate at all times for world demand at reasonable prices.

5. Such agreements shall, with due regard to the need during a period of change for preventing serious economic and social dislocation and to the position of producing areas which may be suffering from abnormal and temporary disabilities, make appropriate provision to afford increasing opportunities for satisfying world requirements from sources from which such requirements can be supplied most effectively and economically.

6. Participating countries shall formulate and adopt a program of economic adjustment believed to be adequate to ensure substantial progress toward solution of the problem within the time limits of the agreement.

Article 54. Administration of Regulatory Agreements 1. Each regulatory agreement shall provide for a governing body, hereinafter referred to as a Commodity Council.

2. Each of the countries participating in an agreement shall be entitled to be represented by a member on the Commodity Council. These members alone shall have the right to vote. Their voting power shall be determined in such a way as to conform with the provisions of paragraph 4 of article 51.

3. The Organization shall be entitled to appoint a non-voting member to each Commodity Council, and may invite any competent specialized agency to nominate a non-voting member for appointment to a Commodity Council.

4. Each Commodity Council shall have a non-voting chairman who, if the Council so requests, shall be nominated by the Organization.

5. The Secretariat of each Commodity Council shall be appointed by the Council after consultation with the Organization.

6. Each Commodity Council shall adopt appropriate rules of procedure and regulations regarding its activities. These rules and regulations shall be subject to the approval of the Organization.

7. Each Commodity Council shall make periodic reports to the Organization on the operation of the agreement which it administers. In addition, it shall make such special reports as the Organization may specify or as the Council itself considers to be of value to the Organ



8. The expenses of a Commodity Council shall be borne by the participating countries.

Article 55. Provision for Initial Terms, Review, and Renewal of

Regulatory Agreements Regulatory agreements shall be in effect for not more than five years. Their renewal shall be subject to the principles stated elsewhere in this chapter. Periodically, at intervals no greater than three years, the Organization shall prepare and publish a review of the operation of each agreement in the light of the principles set forth in this chapter. Moreover, each commodity agreement shall provide that if its operations have failed substantially to conform to the principles laid down in this chapter, participating countries shall revise the agreement to conform to the principles or shall terminate it. When an agreement is terminated, the Organization shall take charge over archives, statistical material, and other possessions of the Commodity Council.

Article 56. Settlement of Disputes Any question or difference concerning the interpretation of the provisions of a regulatory agreement or arising out of its operation shall be discussed originally by the Commodity Council. In the ab

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sence of agreement, the question shall be referred to the Commodity Commission for examination and recommendation to the Executive Board. The Executive Board shall then issue a ruling subject to the provisions of article 86.

SECTION D. Miscellaneous Provisions

Article 57. Obligations of Members Regarding Existing and

Proposed Commodity Arrangements 1. Members undertake to transmit to the Organization the full text of each intergovernmental commodity arrangement in which they are participating at the time of the coming into force of their obligations under this Charter, Members also agree to transmit to the Organization appropriate information regarding the formulation, provisions, and operation of such arrangements. Members agree to conform with the decisions made by the Organization regarding their continued participation in any such intergovernmental commodity arrangement which, after review by the Organization, shall have been found to be inconsistent with the intentions of this chapter.

2. Members undertake to transmit to the Organization appropriate information regarding any negotiations, looking to the conclusion of an intergovernmental commodity arrangement, in which they are participating at the time of the coming into force of their obligations under this Charter. Members also agree to conform with decisions made by the Organization regarding their continued participation in any such negotiations; and the Organization may declare that such negotiations conform to the requirements for a Study Group or a Commodity Conference as the case may be.

Article 58. General Undertaking by Members Members not parties to a particular commodity arrangement undertake to give the most favorable possible consideration to any recommendation by a Commodity Council for expanding consumption of the commodity in question.

Article 59. Exceptions to Provisions Relating to Intergovernmental

Commodity Arrangements 1. The provisions of chapter VII are not designed to cover inter-, governmental commodity arrangements which relate solely to the equitable distribution of commodities in short supply or to cover those provisions of intergovernmental commodity arrangements which appropriately relate to the protection of public morals or the protection of human, animal, or plant life or health; Provided, that such arrangements are not used to accomplish results inconsistent with the

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