FOREIGN- ECONOMIC AND COMMERCIAL POLICY


72-5


Council was then polled on the choice between the version appearing
in NAC Document No. 965 and the alternative presented by the State
Department and voted in favor of the former.
   Action. The following action was taken (Action No. 392):
   The National Advisory Council advises the United States Execu-
 tive Director on the International Monetary Fund: (1) that he should
 seek la determination by the Fund that there is no adequate basis for
 the maintenance of discriminatory restrictions by the Union of South
 Africa; (2) that he should advocate a report from the Fund to GATT
 expressing the view that there is no adequate basis on financial grounds
 for the maintenance of discriminatory import restrictions by the
 Union of SouthAfrica; and (3) that he should advocate Fund consul-
 tation with South Africa to obtain a modification of the South African
 restrictions so as to eliminate the discrimination.


 394.31/3-250: Telegram
 The Secretary of State to the United States Delegation to the Fourth
      Session of the Contracting Parties to GATT, at Geneva

 CONFIDENTIAL                   W'ASHINGTON, March 3, 1950-7 p. m9
   Tagg 26. Fund now considering problem South African restricý-
 tions. US position in Fund is indicated in Tagg 21.1
   As for position in GATT, USDeI shld seek defer consideration
 matIter in GATT pending completion consideration and decision on
 question in Fund. Further instrs will fol soon as decision reached in
 Fund. If discussion cannot be averted prior Fund decision, USDeI
 shld take line indicated in Tagg 21.
                                                          AciEsoN
  March 2, not printed. It informed the delegation of the February 28 NAG
  decision (Alternative A).

International Trade Files, Lot 57D284, Box 111
Extract From Confidential Report by Mr. Henry F. Grady, Chair-
   man of the United States Delegation, to the Fourth Session of the
   Contracting Parties to GATT, to the Secretary of State

CONFIDENTIAL                            [WASHINGTON, April 1950.]


9. Communication from    South Africa on Application of Import
    Restrictions.
  The Delegation's instruction directed it to take the position that
the extent of discrimination in the South African program of im-
port restrictions was not justified by the available information.