FOREIGN RELATIONS, 1950, VOLUME I


  2. Unless the replies to the Article XIV-1 (g) questionnaire should
produce the information,* the Delegation should indicate thait avail-
able information concerning the new restrictions, the resulting modifi-
cations in trade with soft-currency countries and administration of
import restrictions does not-appear to be adequate to judge -the con-
sistency with GATT obligations of the particular methods by which
the intensification is being effected.
  The Delegation should seek to develop as clear a picture as possible
of how the restrictions are applied, of the conditions under which
additional soft-currency imports are being obtained and seek a modi-
fication of restrictions in whatever respects they appear to cause un-
necessary commercial or economic damage. The right to raise further
questions, a-fter the meeting, concerning measures arising out of
intensification should in any event be reserved. The Delegation should,
for example, seek to secure for the record detailed information of the
sort suggested by Article XIII 3 (a).The Delegation may also seek as
much information as possible on prices paid for imports from soft-
currency countries and on the direction of exports. The Delegation may
(also complain if insufficient time is allowed in which to act upon
licenses granted or if, in the case of Annex J countries, clear cases of
the payment of excessive prices for soft-currency imports come to
light. These complaints might also be pressed, if appropriate, in con-
nection with the general review of import restrictions under Article
XIV-1(g).
   3. The consultation under Article XII-4--(b) should not be used as
a basis for a general review of all import restrictions with a view to
eliminating their protective features. Any such investigation should
be taken up under the agenda item dealing with quantitative restric-
tions for protective purposes and should not be confined to sterling
countries. Should there develop instances of particular restrictions
which were intensified for protective rather than balance-of-payments
reasons, the Delegation may, of course, raise the matter under the XII-
4-(b) consultation as well as under the general agenda item dealing
with protective import restrictions.
                             DISCUSSION
 History
   Early in July [1949] the United Kingdom      suspended all dollar
 purchases on government account except those provided for under

   * The draft British reply which was shown to officers of the Department
early
 in February did not appear to contain essential information necessary to
evalu-
 ate the British restrictions In terms of GATT obligations. Notably it did
not
 contain information on prices, which would enable an evaluation of the con-
 sistency of the discrimination with paragraph 1l(a) (i) of Annex J. [Footnote
 in the source text.]


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