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objectives of chapter VI or chapter VII. Members agree not to participate in such arrangements if they involve the regulation of production, trade, or prices unless they are authorized or provided for by a multilateral convention subscribed to by a majority of the nations affected, or unless operated under the Organization.

2. None of the foregoing provisions of chapter VII is to be interpreted as applying to arrangements relating to fissionable materials; 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; or, in time of war or other emergency in international relations, to the protection of the essential security interests of a Member.

Article 60. Definitions 1. For the purposes of this chapter, a primary commodity is any agricultural product or mineral which enters world trade in substantial volume in a form customarily called primary. The term "primary commodity" may include a primary commodity on which minor processing has been performed in preparation for export. It may also include a group of primary commodities which are so closely related to one another that they can conveniently be dealt with in a single arrangement. Such a group may, subject to paragraph 3 of article 52, include appropriate non-primary commodities.

2. For the purposes of this chapter, the term “Member" or "nonmember" shall, where it is appropriate, be taken to mean a Member or non-member with its dependent territories. If a Member or nonmember and its dependent territories form a group, of which one or more units are mainly interested in the export of a commodity and one or more in the import of the commodity, there may be either joint representation for all the associated territories or, where it is so desired, separate representation for the territories mainly interested in export and separate representation for the territories mainly

interested in import.

3. An intergovernmental commodity arrangement is any accord between two or more governments relating to a commodity other than an accord relating to the purchase and sale of a commodity falling under section E of chapter V.

4. A regulatory agreement is an intergovernmental commodity arrangement involving regulation of the production, export, or import of a commodity or regulation of prices.


SECTION A. Functions and Structure of the Organization

Article 61. Functions of the Organization It shall be the function of the Organization:

1. To collect, analyze, and publish information relating to international trade, including information relating to commercial policy, business practices, and commodity problems and to industrial and general economic development.

2. To provide technical assistance and advice to Members and to the United Nations and other international organizations, including such assistance and advice as may be appropriate in connection with specific projects of industrialization or other economic development.

3. To consult with and to make recommendations and reports to Members regarding any matter relating to the purposes of the Organization or the operation of this Charter, including the following:

(a) Recommendations or determinations relating to the discharge of the responsibilities of the Organization, or of the Members, under chapter V.

(6) Recommendations as to measures for implementing the objectives with regard to restrictive business practices set forth in chapter VI.

(c) Recommendations regarding the application to commodity arrangements under consideration by Members of the principles governing commodity arrangements set forth in chapter VII and recommendations initiating proposals for new commodity arrangements, or proposing such modifications, including termination of commodity arrangements already concluded, as may be deemed appropriate under the commodity principles and in the general interest.

(d) Recommendations as to measures for implementing the objectives of the Organization in encouraging and assisting the industrial and general economic development of Members.

4. To consult with Members regarding disputes growing out of the provisions of this Charter and to provide for the settlement of such disputes.

5. To make recommendations for, and promote the acceptance by Members of, international agreements designed to improve the bases of trade and to assure just and equitable treatment for the enterprises, skills, capital, arts, and technology brought from one country to another, including agreements on the treatment of foreign nationals and enterprises, on the treatment of commercial travelers, on commercial arbitration, and on the avoidance of double taxation.

6. To achieve an economy of effort in the performance of the

functions set out in this article and to cooperate with the United Nations and with other intergovernmental organizations, generally, in the attainment of the economic and social objectives of the United Nations and in the restoration and maintenance of international peace

and security.

7. Generally to advise and to make recommendations to Members and other international organizations, and to perform any other furction appropriate to the purposes of the Organization.

Article 62. Structure of the Organization The Organization shall have as its principal organs: a Conference, an Executive Board, commissions as established under article 72, and a Secretariat.

SECTION B. The Conference

Article 63. Membership 1. The Conference shall consist of the representatives of the Members of the Organization.

2. Each Member shall have one representative and may appoint alternates and advisers to its representative on the Conference.

3. No representative on the Conference may represent more than one Member.

Article 64. Voting 1. Each Member shall have one vote in the Conference.?

2. Except as may be otherwise provided for in this Charter, decisions of the Conference shall be taken by a majority of the Members present and voting.

Article 65. Sessions, Procedure, and Officers 1. The Conference shall meet in regular annual sessions and in such special sessions as occasion may require. Special sessions shall be convoked by the Director General at the request of the Executive Board or of a majority of the Members.

2. The Conference shall adopt its own rules of procedure. It shall annually elect its president and other officers.

Article 66. Powers and Duties 1. The Conference shall have final authority to determine the policies of the Organization. It may make recommendations to Members of the Organization and to other international organizations regarding any matter pertaining to the purposes of the Organization.

2. The Conference may, by the affirmative votes of two thirds of its Members, determine criteria and set up procedures for waiving,

See footnote to art. 68.

in exceptional circumstances, obligations of Members undertaken pursuant to this Charter.

3. The Conference may delegate to the Executive Board authority to exercise or perform any of the powers and duties of the Conference, except such specific powers and duties as are expressly conferred or imposed upon the Conference.

4. The Conference shall approve the budget of the Organization and shall apportion the expenses of the Organization among the Members:

5. The Conference may develop and, by the affirmative votes of two thirds of its Members, recommend for their acceptance, conventions and agreements with respect to any matter within the competence of the Organization. Each Member undertakes that it will, within 18 months after such recommendation by the Conference, make a decision upon it. Each Member shall notify the Director General of the action taken and, in the event of rejection of such recommendation, shall furnish a statement of the reasons therefor.

6. The Conference shall establish procedures for making the determinations provided for in article 30 and in paragraph 3 of article 52 whereby any such determinations shall be made through the Organization by consultation among the Members having an important interest in the trade in the product concerned.

7. The Conference shall establish procedures for making the determinations and recommendations provided for in subparagraph 3 (d) of article 26; paragraph 2 of article 34; and article 35.

8. The Conference may, by the affirmative votes of two thirds of its members present and voting, adopt the standards, nomenclature, terms, and forms described in paragraph 7 of article 22.

9. The Conference shall determine the site of the Organization and shall establish such branch offices as it may consider desirable.

SECTION C. Interim Tariff Committee

Article 67. Interim Tariff Committee 1. There shall be an Interim Tariff Committee which shall act temporarily on behalf of the Organization in the making of recommendations and determinations pursuant to paragraph 3 of article 24.

2. The Committee shall consist originally of those Members of the Organization which shall have made effective the General Agreement on Tariffs and Trade dated

194...? Any other Member ? This agreement refers to the proposed acrangement for the concerted reduction of tariffs and trade barriers among the countries invited by the United States to enter into negotiations for this purpose. It is contemplated that the agreement would contain schedules of tariff concessions and would incorporate certain of the provisions of chap. V of the Charter (e. g. the provisions relating to most-favorednation treatment, to national treatment on internal taxes and regulations, to quantitative restrictions, etc.).

of the Organization shall be a member of the Committee when, in the judgment of the Committee, that Member shall have completed negotiations pursuant to paragraph 1 of article 24 comparable in scope or effect to those completed by the original members of the Committee. When the number of Members of the Organization which are members of the Committee shall constitute two thirds of the total number of Members of the Organization, the Committee shall terminate and its functions shall be transferred to the Conference.

3. Each member of the Committee shall have one vote.3

4. Decisions of the Committee shall be taken by a majority of the members present and voting.

5. The Committee shall adopt its own rules of procedure, including provision for the election of its officers.

SECTION D. The Executive Board


Article 68. Membership * First Alternative

1. The Executive Board shall consist of fifteen Members of the Organization elected by the Conference.

2. Subject to the provisions of paragraph 3, one third of the members of the Executive Board shall be elected each year for a term of three years. A retiring member shall be eligible for immediate re-election.

3. At the first election, fifteen members of the Executive Board shall be chosen. The term of office of five members shall expire at the end of one year, and of five other members at the end of two years, in accordance with arrangements made by the

, Conference.

4. Each member of the Executive Board shall have one representative and may appoint alternates and advisers to its representative.

* See footnote to art. 68. * At the meeting of the Preparatory Committee it was suggested that some formal provision might be made in the Charter whereby differences in importance in international trade of individual Members would be reflected in the measure of control that they would exercise over the affairs of the International Trade Organization. In this connection the Committee discussed the possibility of providing for (a) weighted voting or (b) permanent seats on the Executive Board for more important trading countries.

respect to voting (see par. 1 of art. 64, par. 3 of art. 67, and par. 1 of art. 69 the majority of delegations favored in principle the system of one vote for each country, but several who did so expressed willingness to consider alternatives.

In the case of art. 68, above, with respect to membership on the Executive Board, alternative drafts were presented. Many points were raised in the course of discussion, however, which would involve modification, in one way or another, of each of the alternatives, or the formulation of new ones.


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