790            FOREIGN RELATIONS, 19 5 0, VOLUME I

       (i) Shld include members of principal importance in field of
    trade, which shld be permanent members of Board;
       (ii) Shld be representative of different geographic areas; and
       (iii) Shld be representative of countries representing different
    types of economy or degrees of economic development to be found
    within membership of organization.
    (g) Secretariat shld be headed by Exec Sec who shld be named
by Board.
  (h) Exec Board shld meet on call of Chairman or Exec Sec.
  (i) Contributions of each CP to expenses of organization, incl tariff
negots, shld be based upon importance of each CP in internatl trade.
   (j) Seat of organization shld be at (London, Paris, or Geneva, in
that order of preference).
                                                             [Leddy]
                                                             ACHESOX

394.31/12-550: Telegram
The Chairman of the United States Delegation to the Fifth Session
   of the Contracting Parties to GATT (Brown) to the Secretary of
   State

 CONFIDENTIAL                     TORQUAY, December 5,1950-6 p. i.
   251. Have advised representatives Australia, Belgium, Canada,
 Chile, Cuba, France, India, Netherlands, Norway, Pakistan, UK,
 Sweden, Greece, South Africa, Dominican Republic, Brazil impending
 decision ITO. All accepted in good part without surprise and have
 agreed consider Canadian proposal on basis recommendation for action
 by CP's next session., All also agreed inappropriate have any Article
 XXIX action this session.2
                                                               Bpowx

  At the time the Contracting Parties received the news of the: December
6
  Washington announcement regarding the ITO, they were considering a Canadian
  proposal introduced as a nonagenda item on October 25, "Arrangements
for
  the Continuing Administration of the General Agreement" (Doc. GATT/CP.5/
  11) ; substantially the Canadians proposed a permanent committee in order
to
  provide for the discharge of inter-sessional business and otherwise perform
  the duties of a permanent secretariat. Discussion of the Canadian statement
  occurred on December 7 and 8 in plenary session of the Contracting Parties,
  and interest was greatly heightened in the proposal by the United States
  announcement of December 6. On December 8 the CP's decided to set up a
  working party ("L"), composed of 12 members, to study the matter.
The Working
  Party composed a study and report on an urgent basis, submitting it to
the
  Contracting Parties on December 15 (Doc. GATT/CP.5/49, 15 December 1950).
  In general, the Report endorsed the Canadian proposal and specifically
recom-
  mended the establishment of both a standing committee and a permanent
  secretariat. The Contracting Parties voted on December 16 to transmit the
  Report to their respective governments, with a view to fuller consideration
by
  the Contracting Parties at their Sixth Session (to convene September 17,
1951)
  (Doc. GATT/CP.5/SR. 25, Lot 57D284, Box 111).
  Atil :XXIX provided 'inter alia that ". .. If at any time the Havana
  Charter should cease to be in force, the contracting parties shall meet
,as soon
  as practicable thereafter to agree whether this Agreement shall be supple-
  mented, amended or maintained. . .."