by such Member pursuant to Article 18. This paragraph shall become effective upon the expiration of one year from the date on which the Organization is established: Provided, That this period may be extended by the Organization for further periods not to exceed six months each.

4. Members undertake to review any international obligations they may have which would prevent them from giving full effect to paragraphs 1 and 2 of this Article and, if necessary for that purpose, to terminate such obligations either by agreement or in accordance with their terms.

SECTION I. GENERAL EXCEPTIONS

Article 32. General Exceptions to Chapter IV

Nothing in Chapter IV of this Charter shall be construed to prevent the adoption or enforcement by any Member of measures

a. necessary to protect public morals;

b. necessary to protect human, animal or plant life or health;

c. relating to fissionable materials;

d. relating 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;

e. in time of war or other emergency in international relations. relating to the protection of the essential security interests of a Mem ber;

f. relating to the importation or exportation of gold or silver;

g. necessary to induce compliance with laws or regulations which. are not inconsistent with the provisions of Chapter IV, such as those relating to customs enforcement, deceptive practices, and the protection of patents, trade-marks and copyrights;

h. relating to prison-made goods;

i. imposed for the protection of national treasures of artistic, historic or archaeological value;

j. relating to the conservation of exhaustible natural resources if such measures are taken pursuant to international agreements or are made effective in conjunction with restrictions on domestic production or consumption;

k. undertaken in pursuance of obligations under the United Nations Charter for the maintenance or restoration of international, peace and security; or

7. imposed in accordance with a determination or recommendation of the Organization formulated under paragraphs 2, 6 or 7 of Article 55.

SECTION J. TERRITORIAL APPLICATION

Article 33. Territorial Application of Chapter IV-Customs Unions— Frontier Traffic

1. The provisions of Chapter IV shall apply to the customs territories of the Member countries. If there are two or more customs territories under the jurisdiction of any Member, each such customs territory shall be considered as a separate Member country for the purpose of interpreting the provisions of Chapter IV.

2. The provisions of Chapter IV shall not be construed to prevent a. advantages accorded by any Member country to adjacent countries in order to facilitate frontier traffic; or

b. the union for customs purposes of any customs territory of any Member country and any other customs territory: Provided, That the duties and other regulations of commerce imposed by any such union in respect of trade with other Member countries shall not on the whole be higher or more stringent than the average level of the duties and regulations of commerce applicable in the constituent territories prior to the formation of such union.

3. Any Member proposing to enter into any union described in paragraph 2(b) of this Article shall consult with the Organization and shall make available to the Organization such information regarding the proposed union as will enable the Organization to make such reports and recommendations to Members as it may deem appropriate.

4. For the purposes of this Article a customs territory shall be understood to mean any area within which separate tariffs or other regulations of commerce are maintained with respect to a substantial part of the trade of such area. A union of customs territories for customs purposes shall be understood to mean the substitution of a single customs territory for two or more customs territories, so that all tariffs and other restrictive regulations of commerce as between the territories of members of the union are substantially eliminated and the same tariffs and other regulations of commerce are applied by each of the members of the union to the trade of territories not included in

the union.

CHAPTER V. RESTRICTIVE BUSINESS PRACTICES

Article 34. Policy Toward Restrictive Business Practices

1. Members agree to take appropriate individual and collective measures to prevent business practices among commercial enterprises

1

which restrain competition, restrict access to markets or foster monopolistic control in international trade, and which thus have the effect of frustrating the purpose of the Organization to promote expansion of production and trade and the maintenance in all countries of high levels of real income. The term "commercial enterprises" as used in this Chapter shall mean all persons and entities conducting business, including such entities in which there is a government interest as well as agencies of government conducting trade.

2. Without limiting the generality of paragraph 1. Members agree that among the practices which shall be presumed, unless shown to the contrary in a specific case, to have the effect specified in that paragraph are combinations, agreements or other arrangements which

a. fix prices or terms or conditions to be observed in dealing with others in the purchase or sale of any product or service;

b. exclude enterprises from any territorial market or field of business activity, allocate or divide any territorial market or field of business activity, allocate customers, or fix sales or purchase quotas, except as such arrangements are only a part of regular marketing arrangements between a particular enterprise and its distributors with respect to its own products and are not designed to reduce competition between that enterprise and its competitors;

c. boycott or discriminate against particular enterprises;

d. limit production or fix production quotas;

e. suppress technology or invention, whether patented or unpatented;

f. extend the use of rights under patents, trade-marks or copyrights to matters not properly within the scope, or to products or services which are not the immediate subjects, of the authorized grant.

Article 35. Procedure With Respect to Complaints

In order to implement Article 34, the Organization shall:

1. Receive and consider written complaints from any Member that a particular practice or group of practices has the effect described in paragraph 1 of Article 34.

2. Receive and consider similar complaints from persons or business entities or organizations representing them: Provided, That if any Member has established procedures for the filing of complaints by persons, business entities or organizations under its jurisdiction, such complaints shall have conformed to such procedures.

3. Prescribe minimum information to be included in complaints received under paragraphs 1 and 2 of this Article; notify Members of complaints received; and in its discretion call upon the complain

ant or any Member to provide further information relevant to such complaints.

4. When it deems that a complaint deserves further examination, receive pertinent testimony and request other data, conduct appropriate hearings, review all information and determine whether the questioned practices exist and whether they have the effect described in paragraph 1 of Article 34.

5. When it finds that a particular practice or group of practices exists and has the effect described in paragraph 1 of Article 34, make recommendations to the Members concerned for appropriate remedial measures, including but not limited to abrogation and termination of agreements and arrangements, dissolutions, reorganizations, business divestitures, and licensing of patents, to be implemented in accordance with their respective laws and procedures.

6. Request reports from Members as to their actions in implementing its recommendations.

7. Prepare and publish reports concerning complaints, findings thereon, recommendations, and actions taken on such recommendations.

8. Arrange special consultative conferences among particular Members relative to particular complaints, when deemed necessary, and participate in such conferences.

9. Assist in arranging consultations, as requested by Members, as provided in paragraph 4 of Article 37, and participate in such consultations.

Article 36. Studies and Conferences Relating to Restrictive Business

Practices

1. The Organization is authorized to request information from Members and to conduct studies, either on its own initiative or at the request of any Member, the United Nations or specialized agency of the United Nations, relating to business practices which may restrain competition, restrict access to markets or foster monopolistic control in international trade; or relating to international conventions or national laws and procedures designed to carry out the objectives of Article 34 or to those which may affect such objectives, such as conventions, laws or procedures concerning incorporation, company registration, investments, securities, prices, markets, fair Practices, trade-marks, copyrights, patents and the exchange and development of technology; and, where appropriate, to make recommendations for action by the Members.

trade

2. The Organization is authorized to call general consultative conferences of Members and to carry out such additional functions,

within the scope of this Chapter, as may from time to time be assigned to it.

Article 37. Obligations of Members

In order to implement the preceding Articles in this Chapter, each Member undertakes to:

1. Transmit to the Organization, upon its request and as promptly as possible, information called for by the Organization pursuant to paragraph 3 of Article 35 and such other information as the Member may deem pertinent. To this end, each Member shall carry on such investigations within its own jurisdiction as may be necessary for the collection and compilation of such information.

2. Furnish such information and data as may be necessary in accordance with paragraph 4 of Article 35.

3. Consult, upon the request of the Organization in accordance with paragraph 8 of Article 35, with respect to activities which are the subject of complaints filed with the Organization.

4. Notify the Organization of consultations to be held with another Member for the purpose of dealing with particular restrictive business practices, in order that the Organization may assist in arranging such consultations and participate in them pursuant to paragraph 9 of Article 35.

5. Take action, after recommendation by the Organization, to terminate and prevent the recurrence of a particular restrictive business practice or group of practices which has been found by the Organization to have the effect described in paragraph 1 of Article 34. These measures will be taken in accordance with the particular system of law and economic organization of the Member concerned.

6. Report as requested by the Organization under paragraph 6 of Article 35 upon any action taken independently or in concert with other Members in implementing the recommendations made by the Organization pursuant to paragraph 5 of Article 35.

7. Furnish, to the extent feasible, information requested by the Organization in its conduct of studies authorized by paragraph 1 of Article 36.

8. Participate in conferences sponsored by the Organization in furtherance of the purposes of this Chapter.

Article 38. Supplementary Enforcement Arrangements

1. Members may, by mutual accord, cooperate with each other in prohibitive, preventive or other measures for the purpose of making