SECTION D.

Article 64.

Obligations of Members regarding Existing and Proposed Commodity Agreements.

1. Members shall transmit to the Organization the full text of each inter-governmental commodity agreement in which they are participating at the time they become Members of the Organization. Members shall also transmit to the Organization appropriate information regarding the formulation, provisions and operation of such agreements. Members shall conform with the decisions made by the Organization regarding their continued participation in any such inter-governmental commodity agreement which, after review by the Organization, shall have been found to be inconsistent with the provisions of this Chapter.

2. Members shall transmit to the Organization appropriate information regarding any negotiations in which they are participating at the time they become Members of the Organization, for the conclusion of an intergovernmental commodity agreement. Members shall conform with decisions made by the Organization regarding their continued participation in any such negotiations. The Organization may dispense with the requirements of a study group or a commodity conference, if it finds them unnecessary in the light of the negotiations.

respectively a Member and non-Member of tories. If a Member or non-Member and its the Organization with its dependent terridependent territories form a group, of which one or more units are mainly interested in the export of a commodity and one or more in the import of the commodity, there may be either joint representation for all the territories within the group or, where it is so desired, separate representation for the territories main

ly interested in exportation and separate representation for the territories mainly interested in importation.

Article 67.

Exceptions to Provisions Provisions relating to Intergovernmental Commodity Agreements.

1. The provisions of this Chapter shall not apply:

(a) to any bilateral inter-governmental
agreement relating to the purchase and
sale of a commodity falling under
Section D of Chapter IV;

(b) to any inter-governmental commodity
agreement involving no more than one
exporting country and no more than
one importing country, and not covered
by sub-paragraph (a) above; Provided
that if, upon complaint of a non-
participating Member, the Organization
finds that the interests of that Member
are seriously prejudiced by the agree-
ment, the agreement shall become sub-
ject to such provisions of this Chapter
as the Organization may prescribe;
(c) to those provisions of any inter-govern-
mental commodity agreement which
are necessary for the protection of
public morals or of human, animal or
plant life or health; Provided that such
agreements are not used to accomplish.
results inconsistent with the objectives
of Chapter V or Chapter VI.

2. The provisions of Articles 55 and 56 and of Section C of this Chapter shall not apply to inter-governmental commodity agreements found by the Organization to relate solely to the equitable distribution of commodities in short supply.

3. The provisions of Section C of this Chapter shall not apply to commodity control agreements found by the Organization to relate solely to the conservation of exhaustible natural resources.

Article 68.

Membership.

I. The original Members of the Organization shall be those States invited to the United Nations Conference on Trade and Employment whose Governments accept this Charter by

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194... in accordance with paragraph 1 of Article 98, or, if this Charter shall not have entered into force by ....... .....194.., those States whose Governments agree to bring this Charter into force in accordance with the proviso in paragraph 2 of Article 98.

2. Any other State whose membership has been approved by the Conference shall become a Member of the Organization upon its acceptance, in accordance with paragraph 1 of Article 98 of this Charter, as amended up to the date of such acceptance.

3. The following separate customs territories, though not responsible for the formal conduct of their diplomatic relations, shall be admitted to the Organization on such terms as may be determined:

(i) any separate customs territory invited

to the United Nations Conference on Trade and Employment upon acceptance of the Charter on its behalf by the competent Member in accordance with paragraph 2 of Article 99;

(ii) any separate customs territory not

invited to the United Nations Conference on Trade and Employment, proposed by the competent Member having responsibility for the formal conduct of its diplomatic relations and which is autonomous in the conduct of its external commercial relations and of the other matters provided for by this Charter and whose admission is approved by the Conference, upon accep

Article 68.

The Preparatory Committee considered a suggestion to add to Article 68 provisions regarding the effect of suspension of, or expulsion from, membership in the United Nations upon membership in the Organization. It was agreed that, in view of the complexity of the issues involved and the late stage at which the suggestion was made, this question should be deferred until the World Trade Conference by which time governments would have been able to study it fully.

Paragraph 3.

The Delegation of France found itself able to accept this paragraph only on the condition that it could not be applied to Germany, a part of Germany or an Occupation Zone in Germany.

Obviously the rights and obligations of any separate customs territory of the type referred to in paragraph 3

tance of the Charter on its behalf by the competent Member in accordance with paragraph 2 of Article 99, or, in the case of a territory in respect of which the Charter has been accepted under paragraph I of Article 99, upon its becoming thus autonomous.

4. Any separate customs territory admitted to the Organization under paragraph 3 of this Article which is accorded full voting rights shall thereupon be a Member of the Organization.

5. The Conference shall determine the conditions upon which membership rights and obligations shall be extended to Trust Territories administered by the United Nations and to the Free Territory of Trieste.

Article 69. Functions.

The Organization shall perform the functions provided for elsewhere in this Charter. In addition the Organization shall have the following functions:

(a) to collect, analyse and publish information relating to international trade, including information relating to commercial policy, business practices, commodity problems and industrial and general economic development;

(b) to encourage and facilitate consultation among Members on all questions relating to the provisions of this Charter; (c) to undertake studies on, make recommendations for, and promote international agreement on, measures designed

(i) to assure just and equitable treatment for foreign nationals and enterprises;

which did not become a full Member as a result of decisions taken at the World Trade Conference and which applies under paragraph 3 of this Article for admission to the Organization, will have to be determined by the Conference of the Organization when the application is made, and the final draft of the Charter must so provide.

Paragraph 4.

See second footnote to paragraph 3 of Article 68. Article 69.

Paragraph (c) (i).

The deletion of the mention of specific classes of such nationals and enterprises should not be taken as indicating that these classes are not covered in the above broad language. Thus such language would cover treatment of, for example, commercial travellers, and foreign creditors in bankruptcy, insolvency or reorganization.

(e) to co-operate with the United Nations and inter-governmental organizations in furthering the achievement of the economic and social objectives of the United Nations and the restoration and maintenance of international peace and security.

Article 70.

Structure.

The Organization shall have a Conference, an Executive Board, a Tariff Committee, Commissions as established under Article 79, and such other organs as may be required. There shall also be a Director-General and Staff.

THE CONFERENCE

second vote taken by a simple majority of the votes cast in accordance with the plan of weighted voting set out in Annex ... to this Charter.

Article 73.

Sessions, Procedure and Officers.

1. The Conference shall meet in regular annual sessions and in such special sessions as may be convoked by the Director-General at the request of the Executive Board, or of a majority of the Members.

2. The Conference shall establish rules of procedure which may include rules appropriate for the carrying out of its functions during the intervals between its sessions. It shall annually elect its President and other officers.

Article 74.

Powers and Duties.

1. The powers and duties attributed to the Organization by this Charter and the final Organization shall, subject to the provisions of authority to determine the policies of the Article 81, be vested in the Conference.

2. The Conference may assign to the Executive Board the exercise of any power or the performance of any duty of the Organization, except such specific powers and duties. as are expressly conferred or imposed upon the Conference or the Tariff Committee by this Charter.

3. In exceptional circumstances not elsewhere provided for in this Charter, the Conference may waive an obligation imposed upon a Member by this Charter; Provided that any such decision shall be approved by a two-thirds majority of the votes cast and that such majority shall comprise more than half of the

Article 72.

1 See the proposals for weighted voting given in the Appendix.

2 The Articles to be mentioned would be determined by the World Conference.

Article 74. Paragraph 3.

The Delegation of Chile reserved its position regarding the first sentence insofar as it relates to Article 15.

Members of the Organization. The Conference may also by such a vote

(a) define certain categories of excepțional circumstances to which other voting requirements shall apply for the waiver of obligations, and

(b) prescribe such criteria as may be necessary for the application of this paragraph.

4. The Conference may prepare or sponsor agreements with respect to any matter within the scope of the Charter and, by a two-thirds majority of the votes cast, recommend such agreements for acceptance. Each Member shall, within a period specified by the Conference, notify the Director-General of its acceptance or non-acceptance. In the case of non-acceptance a statement of the reasons therefor shall be forwarded with the notification.

Article 75.

5. The Conference may make recommendations to Members and to inter-governmental organizations regarding any matter pertaining to the purpose and objectives set forth in Article I.

6. The Conference shall approve the budget of the Organization and shall apportion the expenditures of the Organization among the Members in accordance with a scale of contributions to be fixed from time to time by the Conference following such principles as may be applied by the United Nations; Provided that no Member shall be required to contribute more than one-third of the total of such expenditures without its consent.

7. The Conference shall determine the seat of the Organization and shall establish such branch offices as it may consider desirable.

Composition of the Executive Board. Alternative A.

1. The Executive Board shall, subject to the provisions of the other paragraphs of this Article, consist of Members of the Organization as follows:

(a) Canada, China, France, India, Union of Soviet Socialist Republics, United King; dom, United States of America and either Belgium and the Netherlands alternating every three years or the Customs Union of Belgium, Luxemburg, and the Netherlands should these States desire to be represented as a unit; (b) Three Members elected by the American Republics not entitled to a seat on the Board under sub-paragraph (a);

(c) One Member to be clected by each of the following groups of States if their members desire to be represented as a group:

(i) Egypt, Iraq, Lebanon, Saudi Arabia, Syria, Transjordan and the Yemen;

(ii) Denmark, Finland, Iceland, Norway and Sweden;

(d) Five Members elected by the remaining Members; Provided that groups of not less than four States, having common interests, and representing a certain proportion of world trade may be formed with the approval of the Conference and any such group shall be

Paragraph 6.

The Delegation of Canada reserved its position on the proviso.

Article 75.

Paragraph 1 (a).

If the Customs Union of Belgium, Luxemburg and the Netherlands as such should not desire to appoint a

entitled to elect one or more Members to the Board according to the number of States which comprise it and the proportion of world trade they together represent.

2. The Conference shall make regulations relating to paragraphs 1 (b), (c) and (d) of this Article which shall provide for the mode of election, the conditions under which groups formed, the method of reallocating seats where under paragraph 1 (d) of this Article may be necessary, and other related matters.

3. The Members elected to the Executive. Board shall normally be elected for terms of three years. The Conference shall establish rules with regard to these terms designed to ensure a reasonable measure of continuity in representation on the Board.

4. During the time that any State mentioned in paragraph I (a) of this Article is not a Member of the Organization, the size of the Executive Board shall be reduced accordingly.

5. If at any time the number of States referred to in paragraph 1 (b) of this Article be seven or less, those States shall be entitled to elect only one Member to the Executive Board. Should at any time this number be more than seven but less than fifteen, they shall be entitled to elect two Members to the Board.

6. Should at any time the number of States referred to in paragraph 1 (d) of this Article be (a) four or more but less than seven, (b) seven or more but less than fifteen, (c) fifteen or more but less than twenty-one,

representative on the Board, Luxemburg would fall under paragraph 1 (d) of this Article.

The Preparatory Committee was not able to examine fully the conception of giving membership in the Board to customs unions. This matter should be considered more thoroughly by the World Conference.

(d) twenty-one or more but less than twenty-eight,

those States shall be entitled to elect one, two, three or four Members to the Board respectively.

7. The number of Members on the Executive Board may, upon a recommendation of the Board, be increased by the Conference by a two-thirds majority of the votes cast.

8. Notwithstanding the provisions of Article 95, any amendment of this Article relating to paragraph I (a) or to the election of Members to the Board under paragraph 1 (b), (c) and (d) or involving the rearrangement of groups established under paragraph 1 (c) or formed under paragraph 1 (d), shall become effective upon its approval by the Conference by a majority of the votes cast.

9. The provisions of this Article shall be subject to review by the Conference every three years.

Alternative B.

1. The Executive Board shall consist of the representatives of not more than fifteen of the Members of the Organization, elected by the Conference by the affirmative vote of two-thirds of those present and voting. Seven of the Members may be immediately re-elected on the expiration of the term for which they have been elected.

2. The number of Members on the Executive Board may, upon a recommendation of the Board, be increased by the Conference by a two-thirds majority of the Members present and voting.

3. The Members elected to the Executive Board shall normally be elected for terms of three years. The Conference shall establish rules with regard to these terms designed to ensure a reasonable measure of continuity in representation on the Board.

Alternative C.

1. Subject to the provisions of paragraph 6 of this Article, the Executive Board shall consist of seventeen Members of the Organization.

2. The eight States of chief economic importance, as determined by the Conference at intervals of three years by a two-thirds majority of Members present and voting, shall be entitled to membership of the Board.

3. The other Members shall be elected to the Board by a two-thirds vote of the Confer

ence.

4. Subject to paragraph 5 one-third of the Members referred to in paragraph 3 shall be elected each year for a term of three years.

Sub-paragraph 5 (a).

See the second note to paragraph 1 of Alternative A.

(a) Canada, China, France, India, United Kingdom, United States, Union of Soviet Socialist Republics and the Customs Union of Belgium, Luxemburg and the Netherlands, should the States members of that Customs Union desire to be represented as a unit, shall be appointed under paragraph 2;

(b) Nine other Members shall be elected, of which the terms of office of three shall expire at the end of one year and of three other Members at the end of two years.

6. (a) During the time that any State mentioned in paragraph 2 of this Article is not a Member of the Organization the size of the Board shall be reduced accordingly.

(b) During any time that the number of Members of the Organization is less than twenty-eight the numbers six, two and two shall be substituted for the number nine, three and three respectively in paragraph 5 (b) of this Article.

7. The Conference shall make regulations which shall apply the provisions of paragraph 5 (b) at any time when the number of Members on the Board is varied under paragraph 6 (b) of this Article.

Article 76. Voting.

1. Each member of the Executive Board shall have one vote.

2. Decisions of the Executive Board shall be made by a majority of the votes cast.

Article 77.

Sessions, Procedure and Officers.

1. The Executive Board shall adopt its own rules of procedure, including rules concerning the convening of its sessions. The rules of procedure shall be subject to confirmation by the Conference.

2. The Executive Board shall annually elect its Chairman and other officers, who shall be eligible for re-election.

3. The Chairman of the Executive Board shall be entitled ex officio to participate, without the right to vote, in the deliberations of the Conference.

4. Any Member of the Organization which is not on the Executive Board, shall be invited to participate in the discussion by the Board of any matter of particular and substantial concern to that Member, and shall, for the purpose of such discussion, have all the rights. of Members on the Board, except the right to

vote.