FOREIGN ECONOMIC AND COMMERCIAL POLICY


which would not be felt until 1951. The representatives of Australia,
New Zealand and the United Kingdom referred in particular to the-
new responsibilities which would be undertaken under the current
rearmament prografms.
   No suggestion was made during the consultations that it would be
appropriate for Chile, India or Pakistan to engage in any ;further gen-
eral relaxation of their restrictions on imports from the dollar area,
and the Fund was also of the opinion that no further relaxations in
the case of these countries were feasible in the present circumstances.
  The consultations accomplished a useful interchange of informa-
tion and opinion, and the representatives of those governments whose-
restrictions were the subject of the consultations said that they had
taken full note of the views expressed by other Contracting Parties
and that these views would be conveyed to their governments for their
consideration."

IV. CONCERN OF THE DEPARTMENT OF STATE REGARDING THE RE-
  NEWAL BY THE CONGRESS OF THE TRADE AGREEMENTS ACT; THEK
  UNITED STATES DECISION CONCERNING THE PROPOSED INTER-
  NATIONAL TRADE ORGANIZATION (ITO)

                          EditoT-ial Note
  In 1950 a number of organizational questions arose with respect,
to the conduct of United States foreign policy regarding the General
Agreement on Tariffs and Trade (GATT) : the question of the status
of China and the eventual withdrawal from GATT by the Republic
of China; United States interest in possible participation by Yugo-
slavia in GATT; questions relating to a possible accession to GATT
by Switzerland; a group of interrelated problems tied to the impend-
ing accession to GATT by the Federal Republic of Germany; and
United States interest in having a Japanese Government observer at
GATT sessions (and substantively, United States interest in securing
most-favored-nation treatment for Japan). Documentation on all of
these issues is located in file series 394.31 (there is heavy documenta-
tion on the China question).
  Still another organizational question, that of the continuing ad-
ministration of GATT (inter-sessional management), was intimately
tied to the problem of bringing into existence the proposed Inter-
national Trade Organization, provision for which had been made at
the Havana Conference in 1948. In respect of the ITO problem, United
States policy was decisive, and selected documents relating to the
ITO-GATT question are included herein.


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