FOREIGN ECONOMIC AND-COMMERCIAL POLICY                  695

International Trade Files, Lot 57D284, Box 112
Position Paper for the United States Delegation to the Fourth Session
   of the Contracting Parties to the General Agreement on Tariffs and
   Trade (GATT)1

CONFIDENTIAL                         [WASHINGTON, February 1, 1950.]
TAC ID-53/502

              QUANTiTATIvE RESTRICTIONS ON EXPORTS3-
                             THE PROBLEM

   For a variety of reasons, many of the contracting parties to the
GATT maintain quantitative restrictions on their exports. *Many of
these export restrictions appear entirely consistent with various pro,
visions of the GATT, but a significant number of such restrictions
appear to be at variance with those provisions. The problem        is to
determine a position with respect to export restrictions at the next
session of the Contracting Parties.

                           RECOMMENDATION
   See last section of Discussion, "Suggested course of action".

                               DISCUSSION
   The present situation-The export restrictions now in effect among
GATT member countries have been built up over a long period of

  The Fourth Session of the Contracting Parties (CP's) (not to be confused
with a tariff negotiating "round":) was scheduled to convene in
Geneva on
February 23. Regarding the United States Delegation to this session,.seeDepart-
ment of State Bulletin, February 27, 1950, p. 339.
  3This was a document 'of the Interdepartmental Committee on Trade Agree-
ments (TAC). TAC had had a continuous existence from June 23, 1934, when
it
was established by letter of the Secretary of State directed to the heads
of the
various departments and agencies concerned with matters of .foreign trade.
The
governing- Executive Order at this time was E.O. 10082, October 5, 1949 (see
Foreign Relations, 1949, vol I, p. 723, footnote 2). The membership in 1950
con-
sisted of the Departments of Stte, Agriculture, Commerce, Labor, Defense,
and
the Treasury, the Economic Cooperation Administration (ECA), and a Com-
missioner of the United States Tariff Commission. TAC was the highest-level
policy-formulating body in the Executive Branch on trade agreements (and
from
1947, GATT) policy, making final recommendations to the President relative
to
the conclusion of trade agreements and for the provisions to be included
therein.
(The work at the operational level was done by a number of country subcom-
mittecs responsible for preparing material with respect to designated countries
and areas.) A master file of TAC minutes and documents for the years 1934-1953
is found in Department of State Lot File No. 59D599.
  a The State Department was very anxious to have this issue discussed at
the
CP's fourth session, although some members of the committee showed a certain
disinclination. At a TAC meeting on February 6, theState member expressed
the
opinion ". .. that the export, restrictions are clearly not in accord
with one of
the GATT provisions.... the provisions of an international agreement die
when
not used..., the time seemedUripe to bring up the question of the violation
of
the GATT by export restrictions ... ." (TAO M-85/50 and SO/5O, Feb.
6, 1950,
Lot 59D599, Box 802)-.                                               .