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 Organization. 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 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 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 intergovernmental 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 [42] 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. CHAPTER VIII. ORGANIZATION 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. (b) 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 |