394.31/12–550: Telegram

The Chairman of the United States Delegation to the Fifth Session of the Contracting Parties to GATT (Brown) to the Secretary of State

confidential

251. Have advised representatives Australia, Belgium, Canada, Chile, Cuba, France, India, Netherlands, Norway, Pakistan, UK, Sweden, Greece, South Africa, Dominican Republic, Brazil impending decision ITO. All accepted in good part without surprise and have agreed consider Canadian proposal on basis recommendation for action by CP’s next session.1 All also agreed inappropriate have any Article XXIX action this session.2

Brown
  1. At the time the Contracting Parties received the news of the December 6 Washington announcement regarding the ITO, they were considering a Canadian proposal introduced as a nonagenda item on October 25, “Arrangements for the Continuing Administration of the General Agreement” (Doc. GATT/CP.5/11); substantially the Canadians proposed a permanent committee in order to provide for the discharge of inter-sessional business and otherwise perform the duties of a permanent secretariat. Discussion of the Canadian statement occurred on December 7 and 8 in plenary session of the Contracting Parties, and interest was greatly heightened in the proposal by the United States announcement of December 6. On December 8 the CP’s decided to set up a working party (“L”), composed of 12 members, to study the matter. The Working Party composed a study and report on an urgent basis, submitting it to the Contracting Parties on December 15 (Doc. GATT/CP.5/49, 15 December 1950). In general, the Report endorsed the Canadian proposal and specifically recommended the establishment of both a standing committee and a permanent secretariat. The Contracting Parties voted on December 16 to transmit the Report to their respective governments, with a view to fuller consideration by the Contracting Parties at their Sixth Session (to convene September 17, 1951) (Doc. GATT/CP.5/SR. 25, Lot 57D284, Box 111).
  2. Article XXIX provided inter alia that “… If at any time the Havana Charter should cease to be in force, the contracting parties shall meet as soon as practicable thereafter to agree whether this Agreement shall be supplemented, amended or maintained.…”