7FOREIGN RELATIONS, 19 5 0, VOLUME I


not later than March 1, 1950 and in each year thereafter on 'any action
still being taken by the contracting parties under sub-paragraphs (b)
and (c) or under Annex J.


International Trade Files, Lot 57D294, Box 110
Position Paper for the United States Delegation to the Fourth Session
                of the Contracting Parties to GATT

RESTRICTED                            [WASHINGTON,] March 3, 1950.
TAC D-117/50
    REPORT ON EXCEPTIONS TO THE IRULE OF NON-DISCRIMINATION

                         ARTICLEXIV-1 (g)
                              I'ROBLEM.
  Article XIV-1 (g) provides that
  "Not later than March 1, 1950 . . . and in each year thereafter, the
Contracting Parties shall report on any action still being taken by
contracting parties under sub-paragraphs (b) and (c) of this para-
graph or under Annex J, ..
  A questionnaire (GATT/CP/39) was circulated to the CPs and a
report based on the replies to this questionnaire and other information
will be prepared at the Fourth Session in accordance with Article
XIV-1 (g).

                          RECOMMENDATION
  In the preparation of the report required by Article XIV-1 (g), the
United States Delegation should participate on the basis of the
following considerations:
  1. In accordance with our understanding with- the British, the
Delegation should avoid provoking the United Kingdom Delegation
into making statements as to the basic policies governing the operation
of their discriminatory trade controls and arrangements. If however,
the United Kingdom     Delegation or some other Delegation should
provoke a discussion of these basic policy issues, or if, in the process
of preparing the report these issues should be raised, the United States
Delegation should seek further instructions regarding the nature of
the statement which should be made in reply by the United States
Government.

  1In reply, 20 of the Contracting Parties had acknowledged that they were
applying import restrictions under Article XII in order to safeguard their
external financial position and were taking advantage of the transitional
period
arrangements of Article XIV for not fully observing the rule of nondiscrimina-
tion. The countries reporting such restrictive practices were Australia,
Brazil,
Canada, Ceylon, Chile, Czechoslovakia, Denmark, Finland, France, Greece,
India,
Italy, the Netherlands, New Zealand, Norway, Pakistan, Sweden, Southern
Rhodesia, South Africa, and the United Kingdom.


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