Article 5. The Development of Domestic Resources and

Productivity

Members, recognizing that all countries have a common interest in the productive use of the world's resources, agree to take action designed progressively to develop economic resources and to raise standards of productivity within their jurisdiction through measures compatible with the other purposes of the Organization.

Article 6. Fair Labor Standards

Members, recognizing that all countries have a common interest in the maintenance of fair labor standards, related to national productivity, agree to take whatever action may be appropriate and feasible to eliminate substandard conditions of labor in production for export and generally throughout their jurisdiction.

Article 7. The Removal of Maladjustments in the Balance

of Payments

Members agree that in case of a fundamental disequilibrium in their balance of payments involving other countries in persistent balance of payments difficulties which handicap them in maintaining employment, they will make their full contribution to action designed to correct the maladjustment.

Article 8. Safeguards for Countries Subject to External

Deflationary Pressure

The Organization shall have regard, in the exercise of its functions as defined in the other articles of this Charter, to the need of Members to take action within the provisions of the Charter to safeguard their economies against deflationary pressure in the event of a serious or abrupt decline in the effective demand of other countries.

Article 9. Consultation and Exchange of Information on Matters Relating to Employment

Members agree to participate in arrangements undertaken or sponsored by the Economic and Social Council of the United Nations, including arrangements with the appropriate intergovernmental organizations:

(a) for the regular collection, analysis, and exchange of information on domestic employment problems, trends, and policies, including as far as possible information relating to national income, demand, and the balance of payments; and

(b) for consultation with a view to concerted action on the part of governments and intergovernmental organizations in the field of employment policies.

CHAPTER IV. ECONOMIC DEVELOPMENT

Article 10. Importance of Economic Development

Members recognize that the industrial and general economic development of all countries and in particular of those countries whose resources are as yet relatively undeveloped will improve opportunities for employment, enhance the productivity of labor, increase the demand for goods and services, contribute to economic stability, expand international trade, and raise levels of real income, thus strengthening the ties of international understanding and accord.

Article 11. Plans for Economic Development

1. Members undertake to promote the continuing industrial and general economic development of their respective countries and territories in order to assist in realizing the purposes of the Organization.

2. Members agree that they will cooperate through the Economic and Social Council of the United Nations and the appropriate intergovernmental organizations in promoting industrial and general economic development.

(3. The Organization, at the request of any Member, shall advise such Member concerning its plans for economic development and, within its competence and resources, shall provide such Member with technical assistance in completing its plans and carrying out its programs.) 1

Article 12. Means of Economic Development

1. Members recognize that progressive economic development is dependent upon the availability of adequate supplies of:

(a) capital funds; and

(b) materials, equipment, advanced technology, trained workers. and managerial skill.

2. Members agree to impose no unreasonable impediments that would prevent other Members from obtaining access to facilities required for their economic development.

3. Members agree to cooperate within the limits of their power to do so, with the appropriate intergovernmental organizations of which they are members in the provision of such facilities.

4. Members agree that, in their treatment of other Members, business entities, or persons supplying them with facilities for their industrial and general economic development, not only will they con

1 This paragraph was adopted provisionally by the Preparatory Committee pending receipt of advice (before the spring meeting of the Preparatory Committee) from the Economic and Social Council as to whether it was in accordance with the Council's views on the appropriate allocation of functions among the various specialized international agencies.

form to the provisions of their relevant international obligations, now in effect, or which they may undertake pursuant to article 61 (5) or otherwise, but also that in general they will take no unreasonable action injurious to the interest of such other Members, buiness entities, or persons.

5. The Organization shall receive from any affected Member, or with the permission of that Member from business entities or persons within its jurisdiction, complaints that action by another Member is inconsistent with its obligations under paragraphs 2, 3, or 4. In the event of such complaint, the Organization may, at its discretion, request the Members concerned to enter into consultation with a view to reaching a mutually satisfactory settlement and lend its good offices to this end.

Article 13. Governmental Assistance to Economic Development

1. Members recognize that special governmental assistance may be required in order to promote the establishment or reconstruction of particular industries, and that such assistance may take the form of protective measures.

2. Members recognize that an unwise use of such protection would impose undue burdens on their own economies and unwarranted restrictions on international trade, and might increase unnecessarily the difficulties of adjustment for the economies of other countries. 3. (a) If a Member, in the interest of its program of development, proposes to employ any protective measures which would conflict with any of its obligations under or pursuant to the Charter, it shall inform the Organization and shall transmit to the Organization any finding in support of this proposal. The Organization shall promptly inform those Members whose trade would be substantially affected by the proposal and afford them an opportunity to present their views. The Organization shall then promptly examine the proposal in the light of the provisions of this chapter, the findings presented by the applicant Member, the views presented by Members substantially affected, and such criteria as to productivity and other factors as it may establish, taking into account the stage of economic development or reconstruction of the Member.

(b) If, as a result of its investigations pursuant to subparagraph (a), the Organization determines upon any measure which would be inconsistent with any obligation that the applicant Member has assumed through negotiation with other Members pursuant to chapter V or would reduce the benefit to such other Members of any such obligation, the Organization shall sponsor and assist in negotiations between the applicant Member and other Members substantially affected, with a view to obtaining substantial agreement. Upon such agreement being reached the Organization may release the applicant Member from the obligation in question or from any other

relevant obligation under the Charter, subject to such limitations as the Organization may impose.

(c) If, as a result of its investigations pursuant to subparagraph (a), the Organization concurs in any measure other than those covered in subparagraph (b), which would be inconsistent with any obligation assumed under this Charter the Organization may, in its discretion, release the applicant Member from the obligation in question subject to such limitations as the Organization may impose.

CHAPTER V. GENERAL COMMERCIAL POLICY

SECTION A. General Commercial Provisions

Article 14. General Most-Favored-Nation Treatment

1. With respect to customs duties and charges of any kind imposed on or in connection with importation or exportation, or imposed on the international transfer of payments for imports or exports, and with respect to the method of levying such duties and charges, and with respect to all rules and formalities in connection with importation or exportation, and with respect to all matters affected by the provisions relating to national treatment in article 15, any advantage, favor, privilege, or immunity granted by any Member country to any product originating in or destined for any other country shall be accorded immediately and unconditionally to the like product originating in or destined for all other Member countries.

2. The provisions of paragraph 1 of this article shall not be construed to require the elimination of any preferences in respect of customs duties and other charges imposed on importation which do not exceed the preferences remaining after the negotiations contemplated in article 24, and which fall within the descriptions set forth in (a), (b), or (c) below:

(a) Preferences in force exclusively

(i) between territories in respect of which there existed on July 1, 1939 common sovereignty or relations of protection or suzerainty, or

(ii) between the territories comprised in Annexure A to this

Charter.

Each Member to which provision (i) applies shall provide a list of such territories, which lists shall be incorporated in a further annexure. (b) Preferences in force exclusively between the United States of America and the Republic of Cuba.

(c) Preferences in force on July 1, 1946, exclusively between neighboring countries.

Article 15. National Treatment on Internal Taxation

and Regulation

[1. The products of any Member country imported into any other Member country shall be exempt from internal taxes and other internal charges higher than those imposed on like products of national origin, and shall be accorded treatment no less favorable than that accorded like products of national origin in respect of all internal laws, regulations or requirements affecting their sale, transportation or distribution or affecting their mixing, processing, exhibition, or other use. The provisions of this paragraph shall be understood to preclude the application of internal requirements restricting the amount or proportion of an imported product permitted to be mixed, processed, exhibited, or used.

[2. The Members recognize that the imposition of internal taxes on the products of other Member countries, for the purpose of affording protection to the domestic production of competitive products, would be contrary to the spirit of this Article, and they agree to take such measures as may be open to them to prevent in the future the adoption of new or higher taxes of this kind within their territories.]

Article 16. Freedom of Transit

[1. There shall be freedom of transit through the Member countries via the routes most convenient for international transit for traffic in transit to or from other Member countries.

[2. Any Member may require that traffic in transit through its territory be entered at the proper customhouse, but, except in cases of failure to comply with applicable customs laws and regulations, such traffic coming from or going to other Member countries shall be exempt from the payment of any transit duty, customs duty, or similar charge, and shall not be subject to any unnecessary delays or

restrictions.

[3. All charges and regulations imposed by Members on traffic in transit to or from other Member countries shall be reasonable, having regard to the conditions of the traffic.

[4. With respect to all charges, rules, and formalities in connection with transit, each Member shall accord to traffic in transit to or from any other Member country treatment no less favorable than the treatment accorded to traffic in transit to or from any other country.

[5. Each Member shall accord to products which have been in transit through any other Member country treatment no less favorable than that which would have been accorded to such products had they been transported from their origin to their destination without going through such other Member country.

A clause relating to purchases of supplies by governmental agencies for public use has been deleted. See par. 2, art. 31.