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

2. The Organization shall, if it considers that the urgency of the situation so requires, initiate consultations among Members with a view to their taking appropriate measures against the international spread of a decline in employment, production or demand.

Article 7.

Safeguards for Members Subject to External Deflationary Pressure.

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

Importance of Economic Development in Relation to the Purpose of this Charter. The Members recognize that all countries have a common interest in the productive use of the world's human and material resources, and that the industrial and general economic development of all countries, and particularly of those in which resources are as yet relatively undeveloped, will improve opportunities for employment, enhance the productivity of labour, increase the demand for goods and services, contribute to economic balance, expand international trade and raise levels of real income.

Article 9.

Development of Domestic Resources
and Productivity.

Members shall within their respective territories take action designed progressively to develop, and where necessary to reconstruct, industrial and other economic resources and to raise standards of productivity through measures consistent with the other provisions of this Charter.

Article 10.

Co-operation for Economic Development.

1. Members shall co-operate with one another, with the Economic and Social Council of the United Nations, with the Organization and with other appropriate inter-governmental organizations in promoting industrial and general economic development.

2. Subject to any arrangements entered into between the Organization and the Economic and Social Council and appropriate intergovernmental organizations, the Organization shall, within its powers and resources, furnish any Member which so requests with appropriate advice concerning its plans and the financing

Chapter III.

and the carrying-out of its programmes for economic development, or shall assist it to procure such advice. Such advice or assistance shall be furnished upon terms to be agreed and in such collaboration with other appropriate inter-governmental organizations as will use fully the special competence of each of them. The Organization shall, upon the same conditions, likewise aid Members in procuring appropriate technical assistance.

Article 11.

Means of promoting Economic Development.

I. Progressive industrial and general economic development requires among other things adequate supplies of capital funds, materials, modern equipment and technology, and technical and managerial skills. Accordingly, no Member shall impose unreasonable or unjustifiable impediments that would prevent other Members from obtaining on equitable terms any such facilities for their economic development, and the Members shall co-operate in accordance with Article 10, in providing or arranging for the provision of such facilities, within the limits of their power.

2. In order to stimulate and assure the provision and exchange of facilities for industrial and general economic development, no Member shall take unreasonable or unjustifiable action within its territories injurious to the rights or interests of nationals of other Members in the enterprise, skills, capital, arts or technology which they have supplied.

3. The Organization may make recommendations for and promote international agreement on measures designed to assure just and equitable treatment for the enterprise, skills, capital, arts and technology brought from one Member country to another, including the elaboration and adoption of a general agreement or statement of principles as to the conduct, practices and treatment of foreign investment.

4. The term "nationals" as used in Articles II and 12 comprises natural and legal persons.

Article 12.

International Investment for Economic

Development

1. The Members recognize that, with appropriate safeguards, including measures adequate to ensure that foreign investment is not used as a basis for interference in the internal affairs or national policies of Members, international investment, both public and private, can be of great value in promoting economic development and consequent social progress. They recognize that such development would be facilitated if Members were to afford, for international investments acceptable to them, reasonable opportunities upon equitable terms to the nationals of other Members and security for existing and future investments. Accordingly they agree to provide, consistent with the limitations recognized as necessary in this Article, the widest opportunities for investment and the greatest security for existing and future investments.

2. Subject to restrictions imposed in accordance with the Articles of Agreement of the International Monetary Fund or with a special exchange agreement entered into between the Member and the Organization under paragraph 6 of Article 24 of this Charter,

(a) with respect to existing investments or to future investments after they have been made, no Member shall impose, directly or indirectly, requirements on

the investments of nationals of other Members which are appreciably more onerous than those which the Member imposes in similar circumstances upon its own nationals or upon the nationals of third countries. Nevertheless the following shall not be deemed to be in conflict with this obligation:

(i) requirements in force at the time of making the investment or at the time that the Charter shall have come into force with respect to the Member, whichever is later; (ii) requirements in force at the time of any substantial addition to the investment or change in the nature of the business based upon the investment, in respect of such addition or such change;

(iii) reasonable measures to ensure participation under (iv) below, by the nationals of the Member in the future expansion of any branch of industry within its territories through increased investment; Provided that, if the nationals of other Members whose interests are materially affected believe that the measure taken is inconsistent with the provisions of this paragraph, the Member taking the measure will provide adequate opportunity for consultation with a view to reaching a satisfactory settlement with the affected nationals;

Article 12.

The Delegation of Czechoslovakia reserved its position. The Delegation of New Zealand entered a formal reservation pending further consideration.

The Delegation of Norway deferred for the time being its decision on the ground that it had not had sufficient time to study this Article.

Paragraph 3 of Article 12 (Drafting Committee Report, New York) was deleted on the ground that this subject was already covered by the provisions of Article 89. In this connection, without prejudice to the usual practice and procedure under the general principles of international law, it was agreed that deletion of paragraph 3 would carry no implication that a Member could not, as under other parts of the Charter, present a complaint to the Organization arising out of a violation of Articles II or 12 and affecting the interests of a national of such Member.

Paragraph 2.

The word "just" in paragraphs 2 (a) (iv) and 2 (b) of Article 12 covers all aspects of the payment of consideration or compensation, including adequacy and time of payment, from the point of view both of the payer and of the receiver, and makes it clear that compensation would not be payable where, because of a violation of a law in force, property has been forfeited or taken under public management or occupation whether by executive action in accordance with pre-existing law or as a penalty under judicial procedure.

The provisions of paragraphs 2 (a) (iv) and 2 (b) are not applicable when the measures of transfer of ownership have been effected pursuant to the terms of a treaty

of peace or in conformity with other international agreements related to the conclusion of the war.

The Belgian Delegation wishes to have it recorded that, even though the word "prior" has not been included in the text, its interpretation of just consideration or compensation would include the idea that the amount of consideration or compensation to be paid should be fixed "prior" to the property being taken into public ownership or placed under public management or occupation. A Member's obligation to ensure the payment of just consideration or just compensation to a foreign national (insofar as it is an obligation to make payment in currency) is essentially an obligation to make payment in the local currency of that Member. The extent to which transfers of such payment into other currencies are to be allowed is for determination by the Member government in accordance with its general foreign exchange policy maintained consistently with the Articles of Agreement of the International Monetary Fund or with a special exchange agreement executed by that Member pursuant to Article 24 of the Charter. This shall not prevent a country taking action to give effect to any greater obligations in respect of such transfers as it may have accepted in an international agreement, provided that such action is consistent with its obligations under the Charter and under the Articles of Agreement of the International Monetary Fund. A Member would not, however, be fulfilling its obligation to ensure the payment of just consideration or just compensation if it restricted the transferability of such payments to a greater extent than required by its general foreign exchange policy as conditioned by the preceding sentence. In this connection, attention is invited to paragraph (i) of Article XIX of the Articles of Agreement of the International Monetary Fund.

3. (a) If as a result of its examination pursuant to paragraph 2 (c) of this Article the Organization concurs in principle in any proposed measure, with or without modification, which would be inconsistent with any obligation that the applicant Member has assumed through negotiations with any other Member or Members pursuant to Chapter IV, or which would tend to nullify or impair the benefit to such other Member or Members of any such obligation, the Organization shall sponsor and assist in negotiations between the applicant Member and the other Member or Members which would be substantially affected with a view to obtaining substantial agreement. The Organization shall establish and communicate to the Members concerned a time schedule for such negotiations.

(b) Members shall commence the negotiations provided for in sub-paragraph (a) of this paragraph within such period as the Organization may prescribe and shall thereafter, unless

Article 13.

The Delegation of China reserved its position but indicated that it was prepared to recommend the text of this Article to its Government for further consideration without committing its Government and while reserving the right to request re-examination of this Article at the World Conference.

The Delegation of India reserved its position on this Article and the whole subject of quantitative restrictions for protective purposes while stating that it had reported the text of this Article to its Government and would make a further statement in this connection upon receipt of instructions from its Government.

The Delegation of Lebanon reserved its position pending the World Conference.

the Organization decides otherwise, proceed continuously with such negotiations with a view to reaching substantial agreement in accordance with the time schedule laid down by the Organization.

(c) Upon substantial agreement being reached, the Organization may release the applicant Member from the obligation referred to in sub-paragraph (a) of this paragraph or from any other relevant obligation under this Charter, subject to such limitations as may have been agreed upon in the negotiations between the Members concerned.

4. (a) If, as a result of its examination pursuant to paragraph 2 (c) of this Article, the Organization concurs in any proposed measure, with or without modification, other than those provided for in paragraph 3 (a) of this Article, which would be inconsistent with any provision of Chapter IV, the Organization may release the applicant Member from any obligation under such provision, subject to such limitations as the Organization may impose.

(b) If, having regard to the provisions of paragraph 2 (c), it is established in the course of such examination that such measure is unlikely to be more restrictive of international trade than any other practicable and reasonable measure permitted under this Charter which could be imposed without undue difficulty and that it is the one most suitable for the purpose having regard to the economics of the industry or the branch of agriculture concerned and to the current economic condition of the applicant Member, the Organization shall concur in such measure and grant such release as may be required to make such measure effective.

(c) If in anticipation of the concurrence of the Organization in the adoption of a measure concerning which notice has been given under paragraph 2 of this Article, other than a measure provided for in paragraph 3 (a) of this Article, there should be an increase or threatened increase in the importations of the product or products concerned, including products which can be directly substituted therefor, so substantial as to jeopardize the plans of the applicant Member for the establishment, development or reconstruction of the industry or industries concerned, or branches of agriculture concerned, and if no preventive measures consistent with this Charter can be found which seem likely to prove effective, the applicant Member may, after informing, and when practicable consulting with, the Organization, adopt such other measures as the situation may require pending a determination by the Organization, provided that such measures do

not reduce imports below the level obtaining in the most recent representative period preceding the date on which the Member's original notification was made under paragraph 2 of this Article.

5. (a) In the case of measures referred to in paragraph 3 of this Article, the Organization shall, at the earliest opportunity but ordinarily within fifteen days after receipt of the statement referred to in paragraph 2 (a) of this Article, advise the applicant Member of the date by which the Organization will notify it whether or not it concurs in principle in the proposed measure, with or without modification.

(b) In the case of measures referred to in paragraph 4 of this Article, the Organization shall, as provided for in paragraph 5 (a), advise the applicant Member of the date by which it will notify it whether or not it is released from such obligation or obligations as may be relevant; Provided that, if the applicant Member does not receive a final reply by the date set by the Organization, it may, after communicating with the Organization, institute the proposed measure after the expiration of a further thirty days from such date.

Article 14.

Transitional Measures.

1. Any Member may maintain any nondiscriminatory protective measure which has been imposed for the establishment, development or reconstruction of particular industries, or particular branches of agriculture, and which is not otherwise permitted by this Charter; Provided that

(a) any such Member which is a signatory of the General Agreement on Tariffs and Trade shall have notified the other signatory governments not later than thirty days prior to the day of the signature of the Agreement of each product on which any such existing measure is to be maintained and of the nature and purpose of such measure, and

(b) any such Member not being a signatory

of the General Agreement but having signed this Charter on the day of its general signature, shall have notified. the other governments signing this Charter on that day, prior to their signature, of each product on which any such existing measure is to be maintained and of the nature and purpose of such measure, and

(c) any other such Member shall, prior to the day of its signature of this Charter,

Article 14.

The Delegation of Lebanon reserved its position pending the World Conference.

Paragraph (b) and (c).

The general signature referred to in sub-paragraphs (b) and (c) above is the signature contemplated at the conclusion of the World Conference.