PZ 1070/40(2) ‘Transmission of F.O. secret packets to & from Consulates etc. abroad’ [‎192v] (385/835)

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(c) Such a general multilateral commercial policy convention snould also
lay down the general principles to govern the practices of State-trading countries,
partial or complete, and the principles to govern the negotiation of agreements
with such countries, including the following :—
(1) That purchases and sales by governments shall conform to the principle
that they shall be made in accordance solely with commercial considera
tions, as provided in Article VIII of the United States-United®&
Kingdom trade agreement; and accordingly,
f‘2) that purchases of specified quantities of goods by any State-trading
country, provided for in any inter-governmental agreement, shall not
be limited to purchases in the other country or countries participating
in the agreement, but shall be global purchases to be made in the
country or countries best able to supply the goods, except possibly
countries not participating in the general multilateral convention. A
further exception might be made in cases where purchases are
allocated in accordance with an agreement among the principal
countries supplying and consuming the goods in question (see para
graph 7, above). This clause is not intended to preclude contracts for
purchases by State-trading organisations provided that they do not
conflict with the principle laid down in point c (1), above.
(d) It is suggested that government action in private-enterprise countries in
trading with State monopolies in other countries should be confined to their
normal trade control measures (such as adjustment of tariffs) exercised within the
limits set by the general commercial policy convention rather than that they
should institute special counter-monopolies.
(e) During a temporary period after the cessation of hostilities, the length
of which should be laid down in the multilateral commercial policy convention,
member countries might be excused from the strict application of the foregoing
rules to their trading monopolies in those cases in which emergency conditions
(such as shortages of supplies, of shipping or of foreign exchange, or the need
to dispose of temporary surplus stocks) necessitate exceptional action.
VII. —International Commercial Policy Organisation.
1. The creation of an appropriate international commercial policy organisa
tion seems essential to the successful operation of any general multilateral
commercial policy convention. Discussions regarding the possible subject-matter
of such a convention have disclosed that it would be desirable to include therein
several provisions, some of vital importance, which could be made workable only
with the assistance of some organisation representing all the member countries.
Among these would be provisions for the application by the organisation of
stated criteria to : (a) future customs unions; (b) quantitative import regulations
imposed on grounds of balance-of-payments difficulties; (c) State-trading
operations; (d) revenue tariffs; (e) subsidy programmes; and (/) export
restrictions imposed on grounds of severe domestic shortage.
2. In general, the purposes of the proposed international commercial policy
organisation would be as follows :—
(a) To provide information to member countries regarding the implementa
tion of the convention by other member countries.
(b) To afford a source of consistent interpretation regarding the provisions
of the convention.
(c) To carry out investigative and fact-finding functions required or
permitted by the provisions of the convention.
(ef) To provide a mechanism for the consideration of complaints, the adjust
ment of differences, and appropriate action in cases of non-observance
of the convention.
(e) To recommend to member countries any amendments to the convention
which appear desirable in the light of experience.
3. Further consideration might show the desirability, for administrative
reasons of providing within the proposed commercial policy organisation for :
(1) a Council, or supervisory body, representing all member^ countries, to which
would be referred important policy matters; and (2) a Commission, or operating
body, preferably a small group assisted by a staff of experts, which would carry out
investigative and fact-finding functions and consider minor complaints,' &c..