750


FOREIGN-, RELATIONS, 1950, VOLUME I


as much factual information as possible concerning administration of
the restrictions.
  Prior to consideration of this item by the Contracting Parties, the
Delegation was informed by representatives of the International
Monetary Fund that it was prepared to enter into consultation only
with respect to the United Kingdom, and that it had not been pre-
viously informed that such consultation would extend to other coun-
tries. Accordingly, the Delegation informed the Department that it
intended to proceed with the UK consultation, deferring consultation
with the other Commonwealth members and Chile. The Department
subsequently approved this course of action in Tagg 64.'
  When the item finally came up for discussion in the working party,
the Representative of the IMF made the announcement previously
communicated to the US Delegation, that he was prepared to enter
into the consultations only with respect to the UK. Accordingly it
was agreed to defer consultations until the next session and on the
suggestion of New Zealand, that the sterling area countries should be
considered together, it was decided that the UK consultation should
also be deferred. No commitment was made by the US Delegation to
consult with these countries on a group basis.
11. Report on Exceptions to the Rule of Non-Discrimbntion, Art.
    14(1) (g).
  The position paper stated that in laccordance with an understand-
ing with the British, the Delegation should avoid provoking the UK
into making statements on basic policies governing .the operation of its
discriminatory trade controls. The Delegation was, however, to point
out -the necessity of restoring multilateral trade land full converti-
bility of currencies and that the solution should be found in increased
exports to hard currency areas. The Delegation was also instructed
to review the restrictions in the light of the standards of the Agree-
ment and to request additional information on the restrictions if it was
needed to judge their consistency with the Agreement.
  Individual reports were examined in the working party on a coun-
try by country basis. The Delegation put questions to the various
representatives designed to obtain supplementary information where
the reports were considered to be inadequate. Telegrams from the
Department (Tagg 46)' suggesting additional questions assisted
greatly in this process. A report was prepared fand approved for

  "Not printed.