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A A1545811




Commercial Policy Series 106


In the interest of speed and cconomy, this document has been reproduced by photo-mechanical means from an original United Nations print done at Geneva.


The Draft Charter for a proposed International Trade Organization of the United Nations, contained in this document, was approved on August 22, 1947, at Geneva, Switzerland, by the Preparatory Committee of the United Nations Conference on Trade and Employment, consisting of representatives of 17 nations. This Committee was constituted by the Economic and Social Council of the United Nations by resolution of February 18, 1946, on which date the Council resolved to call the United Nations Conference. The Draft Charter is embodied in the Report of the Second Session of the Preparatory Committee to the Economic and Social Council, presented herewith, which gives an account of the various steps which have been taken by the Preparatory Committee.

In 1945 the United States Government published its Proposals for Expansion of World Trade and Employment (Department of State publication 2411, Commercial Policy Series 79). The principles set forth in the Proposals were elaborated in the form of a Suggested Charter for an International Trade Organization of the United Nations published by this Government in September 1946 (Department of State publication 2598, Commercial Policy Series 93). The Preparatory Committee used the Suggested Charter as a basic document in its discussions at its first meeting in London in October and November 1946. In December 1946 the Department of State published a document, Preliminary Draft Charter for the International Trade Organization of the United Nations (Department of State publication 2728, Commercial Policy Series 98) which has come to be known as the “London Draft”. This document included articles drafted by the Preparatory Committee at its first session in London as well as certain articles from the original United States Suggested Charter on which the Preparatory Committee had taken no action. A drafting committee of representatives of the members of the Preparatory Committee met in New York in January and February 1947 and made further revisions in the Preliminary Draft. The “New York Draft” was the working document of the Preparatory Committee at its Second Session which opened in Geneva on April 10, 1947.

The Department of State is publishing the Preparatory Committee's report for the purpose of facilitating public discussion of the Draft Charter in advance of the United Nations Conference on Trade and Employment which the Economic and Social Council has called to meet at Habana, Cuba, on November 21, 1947.

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(adopted by the Preparatory Committee 22 August 1947)

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I. ESTABLISHMENT OF THE PREPARATORY Nations which might be invited to the ConCOMMITTEE

ference. The relevant sections of this interim The Economic and Social Council at its report are reproduced in Enclosure 1 to the First Session resolved on 18 February 1946 to

present Report. The resolutions adopted by

the Economic and Social Council relating to call an International Conference on Trade and

the recommendations in the interim report are Employment for the purpose of promoting

reproduced in Enclosure 2. In accordance the expansion of production, exchange and

with those resolutions, the United Nations consumption of goods. At the same time the

Conference on Trade and Employment is to be Council constituted a Preparatory Committee

convened on 21 November 1947 at Havana, to elaborate for the Conference an annotated

Cuba. draft agenda, including a draft convention, taking into account suggestions which might mittee continued the preparation of the draft

The Seconòl Session of the Preparatory Combe submitted by the Council itself or by any

Charter or convention. The draft adopted by member of the United Nations. The Council also charged the Preparatory Session as a basis for discussion at the World

the Preparatory Committee at the Second Committee with presenting recommendations

Conference appears as Part II of the present regarding the date and place of the Conference

Report. Although the Preparatory Committee on Trade and Employment and which States,

has reached a large measure of agreement on if any, non-members of the United Nations,

the text to be recommended to the full Conshould be invited to the Conference.

ference, it will be noted that the text is accom

panied by a number of notes indicating the 2. STAGES IN THE WORK OF THE PREPARATORY

reservations which have been made and the COMMITTEE

interpretations of the text which are thought

necessary in order to make the exact intention The First Session of the Preparatory Com- clear. Some of these latter notes enabled resermittee was held in London from 15 October to vations to be withdrawn. 26 November 1946. In the course of this In view of the fact that changes have been Session, a draft Charter for an International made in the text of the draft Charter as it has Trade Organization was prepared and embodied progressed through the Preparatory Committee, in a report which was distributed as document and particularly in view of the fact that the E/PC/T/33 and published.

order of the articles has been rearranged, the The First Session appointed a Drafting Com- present report contains as Enclosure 4 tables mittee to meet as soon as possible after the setting forth in parallel columns the identifying First Session for the purpose of editing the numbers of comparable provisions in the draft Charter produced in London. The Draft- versions of the draft Charter issued by the ing Committee met in New York from 20 New York Drafting Committee and by the January to 25 February 1947 and recorded the Second Session of the Preparatory Committee results of its work in a report which was in order to facilitate a determination of the distributed as document E /PC/T/34 and later relationship between the present text and the published.

earlier version. The Second Session of the Preparatory Com- In its present Report, the Preparatory Committee was convened at the European Office mittee has refrained from enunciating in detail of the United Nations in Geneva on 10 April the principles underlying the draft Charter. 1947. During the course of this Session, the It was felt by the Preparatory Committee Preparatory Committee transmitted to the that the observations presented in Part II of Fifth Session of the Economic and Social the Report of the First Session represented a Council an interim report indicating the pro- general statement of the guiding principles posed outlines of the annotated draft agenda which have been followed and developed in the and convention which were being prepared for work of the First Session, the Drafting Gomthe full Conference and presenting recommend- mittee and the Second Session. Although the ations concerning the date and place of the Report of the Second Session will constitute Conference and the non-members of the United the agenda and basic "working paper" at the

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