FOREIGN RELATIONS) 1950, VOLUME. .1


  Sent Department 3193, repeated information Paris 1053 for Katz,
Woods; Torquay 104 for Brown. Department pass ECA/Washington
for Foster, Bissell; Treasury for Martin.
                                                          HOLmES

International Trade Files, Lot 57D284, Box 165, Folder "Balance of Payments"
               Press Statement of December 13, 1950
            ANNOUNCEMLE-NT    E TORQUAY CONFERENCE
  One of the principal items on the agenda of the Contracting Parties
to the General Agreement on Tariffs and Trade at their Fifth Session
now going on at Torquay, England, was consultations by the Contract-
ing Parties with t.he Governments of Australia, Ceylon, Chile, India,
New Zealand, Pakistan, Southern Rhodesia. and the United Kingdom
with respect to their import restrictions. These consultations have now
been concluded. The results are summarized in the following
announcement made today at Torquay by the Contracting Parties.
   "Under Item 8 of the Agenda, consultations were held with the Gov-
ernments of Australia, Ceylon, Chile, India, New Zealand, Pakistan,
Southern Rhodesia and the United Kingdom with respect to their
import restrictions in accordance with Article XII: 4 (b) of the Gen-
eral Agreement. In accordance with Article XV (2) of the Agreement,
the Contracting Parties also consulted with the International Mone-
tary Fund.
  There was a 'full and frank discussion between the Contracting
Parties, the consulting countries and the Fund, in which full informa-
tion was presented and views and opinions were freely expressed.
   During the course of the consultations, the representatives of Bel-
gium, Cuba, Canada and the United States expressed the view that
the time had come when, v-,ith all due caution in the light of the, un-
certainties of the present situation, ;a progressive relaxation of the
hard currency import restrictions of Australia, Ceylon, New Zealand,
Southern Rhodesia and the United Kingdom might begin. This view
was based upon their analysis of the favorable current situation of
these countries and of the prospects in the coming year. Based upon its
analysis made available to the Contracting Parties, the Fund expressed
the opinion that such relaxation would be feasible in these cases but
should be undertaken with due caution in the light of present un-
certainties. The representatives of Australia, Ceylon, New Zealand and
the United Kingdom expressed the opinion that although the gold and
dollar reserves of the sterling area had markedly improved, these views
gave undue weight to the favorable factors in the developments of
the past 12 months and that insufficient attention 'had been paid to the
-adverse factors operating in the present situation, the full force of


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