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would include a provision that any government which is
not a party to the GATT must undertake, on acceding to
this Arrangement, not to introduce new import restric-
tions or intensify existing import restrictions, on cotton
textiles, insofar as such action would, if that government
had been a party to the GATT, be inconsistent with its
obligations thereunder.

Article 12

1. This Arrangement shall enter into force on 1 October
1962 subject to the provisions of paragraph 2 below.

2. The countries which have accepted this Arrangement
shall, upon the request of one or more of them, meet
within one week prior to 1 October 1962 and, at that meet-
ing, if a majority of these countries so desire, the provi-
sions of paragraph 1 above may be modified.



March 72, 7962



433



Article IS

Any participating country may withdraw from this
Arrangement upon the expiration of sixty days from the
day on wliieh written notice of such withdrawal is re-
ceived by the Executive Secretary of GATT.

Article H

This Arrangement shall remain in force for five years.

Article 15

The Annexes to this Arrangement constitute an integral
part of this Arrangement.

Annexes

Annex A

(The percentages in this Annex will be communicated
in due course.)

Annex B

1. (a) The level below which imports or exports of
cotton textile products causing or threatening to cause
market disruption may not be restrained under the pro-
visions of Article 3 shall be the level of actual imports or
exports of such products during the twelve-month period
terminating three months preceding the month in which
the request for consultation is made.

(b) Where a bilateral agreement on the yearly level of
restraint exists between participating countries concerned
covering the twelve-month period referred to in para-
graph (a), the level below which imports of cotton textile
products causing or threatening to cause market dis-
ruption may not be restrained under the provisions of
Article 3 shall be the level provided for in the bilateral
agreement in lieu of the level of actual imports or exports
during the twelve-month period referred to in para-
graph (a).

Where the twelve-month period referred to in para-
graph (a) overlaps in part with the period covered by
the bilateral agreement, the level shall be :

(i) the level provided for in the bilateral agreement,
or the level of actual imports or exports, which-
ever is higher, for the months where the i>eriod
covered by the bilateral agreement and the twelve-
month period referred to in paragraph (a) over-
lap ; and
(ii) the level of actual inipdrts or exports for the
months where no overlap occurs.

2. Should the restraint measures remain in force for
another twelve-month period, the level for that period
.shall not be lower than the level .specified for the preced-
ing twelve-month period, increased by 5 per cent. In
exceptional cases, where it is extremely difficult to apply
the level referred to above, a percentage between 5 and
may be applied in the light of market conditions in the
importing country and other relevant factors after con-
sultation with the eximrting country concerned.

3. Should the restraining measures remain in force for
further periods, the level for each subsequent twelve-



month period shall not be lower than the level specified
for the preceding twelve-month period, increased by 5
per cent.

Annex C

Extract from the Contracting Parties'

Decision of 19 November 1960

"These situations [market disruption] generally con-
tain the following elements in combination :

(i) a sharp and substantial Increase or potential in-
crease of imports of particular products from
particular sources ; ■

(ii) these products are offered at prices which are 1
substantially below those prevailing for similar
goods of comparable quality in the market of the
importing country ;
(iii) there is serious damage to domestic producers or J
threat thereof; ^

(iv) the price difl:erentials referred to in paragraph
(ii) above do not arise from governmental inter-
vention in the fixing or formation of prices or
from dumping practices.
In some situations other elements are also present and
the enumeration above is not, therefore, intended as an
exhaustive definition of market disruption."

Annex D

For the purposes of applying Article 9, the following
list of the groups or sub-groups of the S.I.T.C. is sug-
gested. This list is illustrative and should not be con-
sidered as being exhaustive.

SITC Rev. BTN

I Cotton yarns and fabrics 651. 3 55. 05

.4 .06

652 . 07

.08

.09

58.04A

II Cotton made-up articles

and special fabrics ex 653. 7 ex 46. 02

ex 654 ex 58.01-03

ex 655 ex 58. 05-10

ex 650 ex 59.01-17

ex 657 ex 60. 01

ex 62. 01-05

ex 6."i. 01-02

III Cotton Clothing ex 841 ex 60. 02-06

ex 61.01-11
ex 65. 03-07

Annex E

Interpretative Notes

1. Ad. Articles, paragraphs

In Canada, there is no legislation whereby import.s may
be limited in a precise quantitative manner as envisaged
in this paragraph. The provision available for limiting
imports in order to avoid injury or a threat of injury to a
domestic industry is contained in Stvtion 40.\(7)(c) of
the Customs Act which authorizes the application of .sjie-
cial values for duty purposes. These special values cannot
be used to achieve a precise level of imports. Accord-



434



Depoffmenf of Sfafe Bulletin



ingly, the participating countries recognize that, should
Canada find it necessary to take action to limit imports
pursuant to this arrangement, it would not be in a posi-
tion to ensure that imports would not fall below the mini-
mum level as defined in this paragraph.



2. Ad. Article 9

Notwithstanding the provisions of Article 9, any coun-
try which is applying a criterion based on value will be
free to continue to use that criterion for the purposes of
Article 9.



INTERNATIONAL ORGANIZATIONS AND CONFERENCES



U.S. Files Statement on Financial
Obligations of U.N. IVIembers

Press release 111 dated February 20

The Department of State announced on Feb-
ruary 20 that the United States Government had
filed its written statement with the International
Court of Justice that day in the advisory pro-
ceeding on financial obligations of members of the
United Nations.^

The U.N. General Assembly has asked the
Court - for an advisoi-y opinion on the question
whether assessments levied by the Assembly on
U.N. members to pay for peacekeeping operations
in the Congo and the Middle East are legally bind-
ing under article 17 of the United Nations
Charter.

The United States has consistently taken the
position that such assessments create a legal ob-
ligation on member states to pay. The Legal
Adviser of the Department of State, Abram
Chayes, will present oral argument to the Court
at The Hague when oral hearings are held by the
Court this spring.

World Bank Reports Total Reserves
of $651.7 IVIillion

The International Bank for Keconstruction and
Development on February 1 reported that its re-
serves had risen by $49.9 million in the first 6
months of the current financial year to a total of
$651.7 million.

The additions to reserves in the 6-month period



• For background, see Buixetin of Feb. 26, 1962, p. 311.
'U.N. doc. A/RES/1731(XVI).



ending December 31, 1961, are made up of net
earnings of $34.9 million, which were placed in
the supplemental reserve against losses on loans
and guarantees, and loan commissions of $15 mil-
lion, which were credited to the special reserve.
On December 31 the supplemental reserve totaled
$443.1 million and the special reserve was $208.6
million.

Gross income, exclusive of loan commissions, was
$89.9 million. Expenses totaled $55 million and
included $47.6 million for mterest on the Bank's
funded debt, bond issuance, and other financial
expenses.

During the period the Bank made 19 loans
totaling $399.9 million — in Colombia, Costa Rica
(2 loans), Ethiopia, Finland, India (4 loans),
Israel, Japan, Kenya, Peru, Philippines (2 loans),
South Africa (2 loans), Trinidad and Tobago,
and Venezuela. This brought the total number
of loans to 311 in 59 countries and raised the gross
total of loans signed to $6,190.4 million. By De-
cember 31, as a result of cancellations, repayments,
and sales of loans, the poi'tion of loans signed still
retained by the Bank had been reduced to $4,477.4
million.

Disbursements on loans were $240.9 million,
making total disbursements $4,560.6 million on
December 31.

The Bank sold or agreed to sell the equivalent
of $84.8 million principal amounts of loans. At
December 31 the total amount of such sales was
$1,097.9 million, of which all except $69 million
was without the Bank's guarantee.

Repayments of principal received by the Bank
amounted to $47.7 million. Total principal repay-
ments amounted to $956.4 million on December 31 ;
this included $486.2 million repaid to the Bank



March 72, 7962



435



and $470.2 million repaid to the purchasers of bor-
rowers' obligations sold by the Bank.

On December 31 the outstanding funded debt of
the Bank was $2,425.6 million, reflecting a net
increase of $197.1 million in the past 6 months.
During the period there was a gross increase in
borrowings of $321.1 million. This consisted of
an Italian lire public bond issue in the amount of
Lit 15 billion (US$24 million) ; the private place-
ment of an issue of $100 million of U.S. dollar
bonds; the drawing down of Sw Fr 50 million
($11.6 million) from the Swiss franc borrowing of
October 1961 ; the drawing down of US $120 mil-
lion and the balance of DM250 million ($62.5 mil-
lion) of the German borrowing of August 1960;
and the delivery of $3 million of bonds which had
been subject to delayed delivery arrangements.
The funded debt was decreased by $124 million as
a result of the maturing of $105 million of bonds,
the redemption of Sw Fr 50 million ($11.6 mil-
lion), and sinking and purchase fund transactions
amounting to $7.4 million.

During the first 6 months of the fiscal year, the
Dominican Republic was readmitted to member-
ship in the Bank with a capital subscription of
$8 million, and Laos (capital subscription $10 mil-
lion), New Zealand ($166.7 million), Nepal ($10
million), and Cyprus ($15 million) became mem-
bers of the Bank. Tlie subscribed capital of the
Bank amounted to $20,445.3 million on Decem-
ber 31, 1961.



United States Delegations
to International Conferences

CENTO Economic Committee

The Department of State announced on Febru-
ary 23 (press release 115) that William M. Roun-
tree would serve as chairman of the U.S.
delegation to the 10th session of the Economic
Committee of the Central Treaty Organization
(CENTO), held at Washington February 26-28,
and that he would also serve as conference chair-
man. Howard R. Cottam, Deputy Assistant
Secretary of State for Near Eastern and South
Asian Affairs, served as vice chairman of the
delegation.

Advisers to the delegation were as follows :

John P. Ferris, Bureau of Near East and South Asia,
Agency for Intcrnntionnl Povclopmont



Berger A. Indseth, Deputy Economic Coordinator, Agency

for International Development, Ankara
John H. Kaiifmann, Director, Office of Greek, Turkish,

Iranian, and Cyprus Affairs, Agency for International

Development
Myron Brockway Lawrence, Bureau of Economic Affairs,

Department of State
John W. McDonald, Economic Coordinator, Agency for

International Development, Ankara
Matthew D. Smith, Jr., Officer-in-Charge, CENTO Affairs,

Bureau of Near Eastern and South Asian Affairs,

Department of State

The keynote address at the opening session was
given by Walt W. Rostow, Counselor and Chair-
man of the Policy Planning Council, Department
of State. Frank M. Coffin, Deputy Administrator,
Agency for International Development, addressed
the visitors at an official luncheon on February 28.

The United States participates in CENTO ac-
tivities and is a member of the Economic Com-
mittee. The Committee is responsible for
advancing economic cooperation designed to de-
velop and strengthen the joint economic and
financial resources of the regional member coun-
tries, Iran, Pakistan, and Turkey. The United
States and the United Kingdom have provided
financial and technical assistance in various fields,
particularly communications and transportation.
An example of U.S. support for the CENTO pi'O-
gram is the microwave telecommimications project
which will link Tehran, Karachi, and Ankara in
one of the longest and most modern networks in
the free world.



Current U.N. Documents:
A SeSectecil Bibliography



Mimeographed or processed documents {such as those
listed helow) may be consulted at deiiiisitorii libraries in
the United States. U.N. printed publications may be
purchased from the Sales Section of the United Nations,
United Nations Plaza, N.Y.



Security Council

Letters concerning the situation in the Dominican Re-
public. S/4»92, November 21, lOGl, 5 pp.; S/4S)90,
November 24, 19(il, 3 pp.: S/o013, December 7, 1961,
2 pp. ; S/.501.">, December 8, 1901, 2 pp.

Letter dated November 24 from the pennanent represent-
ative of Tunisia addressed to the President of the
Securitv Council, concerning the situation in Algeria.
S/5000. November 24, 19G1. 1 p.

Report of the Sub-Committee on the Situation in Angola.
S/4993. November 27, 19C1. 143 pp.

Communications, letters, notes verbale, and reports on
the situation in the Congo. S/5003, November 27, 1961,



436



Department of Slate Bulletin



2 pp.; S/-1940/A{ld. 14, November 29, 19G1, 6 pp.;
S/4»40/Ad(i. 15 and Corr. 1, November 30, 1961, 11 pp. ;
S/5009. November 30, 1961, 3 pp. ; S/5010 and Corr. 1,
December 1, 1961, 6 pp. ; S/4940/Add. 16, December 6,
1961, 16 pp. ; S/5025, December 15, 1961, 14 pp. ; S/503.5,
December 19, 1961, 9 pp. ; S/4940/Add. 18, December 20,
1961, S pp.; S/5038, December 21, 1961, 4 pp.;
S/4940/Add. 19, December 22, 1961, 3 pp.

Note verbale dated September 13 from the Secretariat
General of the League of Arab States addres.sed to the
U.N. Secretariat, transmitting texts of letters exchanged
on August 12 between the prince of the State of Kuwait
and the Secretary General of the Arab League. S/5007.
November 30. 1961. 13 pp.

Letters concerning Indian action against Portuguese prov-
inces in India. S/u016, December 8, 1961, 2 pp. ; S/5028.
December 18. 1961, 5 pp.; S/.o029. December IS. 1961,
2 pp. ; S/5030. December 18, 1961, 2 pp. ; S/5034, Decem-
ber IS, 1961, 2 pp.

Letter dated December 11 from the Secretary General of
the Organization of American States addressed to the
Acting Secretary-General concerning an OAS meeting
of ministers as Organ of Consultation. S/5036. De-
cember 20, 1961. 4 pp.

General Assembly

Report on the sixth session of the Executive Committee of
the High Commissioner's Program, Geneva, Novem-
ber 6-10, 1961. A/AC.9G/146. November 14, 1961.
38 pp.

Letter dated November 11 from the Chairman of the
U.N. Commission for Ruanda-Urundi to the President
of the General Assembly concerning the investigation
of the circumstances of the death of the Prime Minister
of Burundi. A/4970. November 15, 1961. 4 pp.

Report of the Working Group of Fifteen on the examina-
tion of the administrative and budgetary procedures of
the United Nations. A/4971. November 15, 1961. 37
pp.

Letter dated November 16 from the permanent represent-
ative of India to the President of the General Assembly
requesting inclusion of an additional item in the agenda
of the 16th session entitled United Nations Year for
International Cooperation. A/4972. November 16,
1961. 4 pp.



Economic and Social Council

Economic Commission for Asia and the Far East. Re-
port of the first session of the Conference of Asian
Economic Planners. E/CN.11/571. October 12, 1961.
64 pp.

Second tabulation of answers to the questionnaire of
August 11, 1960, on development of international travel
and tourism. E/3438/Add. 2. October 19, 1961. 79 pp.

Technical Assistance Committee. Budget estimates for
the secretariat of the Technical Assistance Board for
the year 1962. E/TAC/110. October 23, 1961. 36 pp.

Commission on the Status of Women. Occupational out-
look for women. E/CN.6/374/Add. 2. November 7,
1961. 12 pp.

Social Commission. Planning for balanced social and
economic development in the Uzbek Soviet Socialist
Republic. E/CN.5/346/Add. 5/Rev. 1. November 10,
1961. 54 pp.

Statistics of official contributions in 1960 for international
economic assistance to underdeveloped countries.
E/3556/Add. 1, November 13, 1961, 2 pp.; Corr. 1,
November 15, 1961, 1 p.

Application of the Convention on the Privileges and
Immunities of the Specialized Agencies to the Inter-
national Development Association. E/3559. Novem-
ber 13, 1961. 5 pp.



TREATY INFORMATION



United States and Luxembourg
Sign FEN Treaty

Press release 116 dated February 23

A treaty of friendship, establishment, and navi-
gation between tlie United States and Luxembourg
was signed on February 23 at Luxembourg. The
American Ambassador, James Wine, signed the
treaty for the United States, and Eugene Schaus,
Minister of Foreign Affairs, signed for Luxem-
bourg.

The new treaty, whicli consists of 19 articles
and a protocol, resembles in many particulars the
comprehensive treaties of friendship, establish-
ment, and navigation which the United States has
entered into with more than 20 countries in recent
years. Like those treaties it contams detailed
provisions on personal and property rights and
the conduct of business activities. In brief each
country undertakes by those provisions: (1) to
extend to the nationals and corporations of the
other treatment no less favorable than it gives to
its own nationals and corporations with respect
to carrying on a wide range of commercial, finan-
cial, and industrial pursuits ; (2) to safeguard the
persons, property, and interests of nationals of
the other country; (3) to observe the rule of non-
discrimination in the tax treatment of nationals
and enterprises of the other country; and (4) to
apply exchange restrictions only in accordance
Avith carefully defined standards of reasonable
treatment.

This new treaty with Luxembourg is not a com-
mercial treaty and as such does not include pro-
visions for the regulation of trade in goods
between the two countries or detailed articles on
shipping matters. Its provisions on the latter
subject are limited to a commitment to avoid
flag discrimination (i.e. discrimination based on
the nationality of the vessel) against goods on the
ocean segment of their journey from the terri-
tories of either treaty partner to the other.

The United States is highly gratified at the suc-
cessful negotiation of this treaty, which is the first



March 12, 1962



437



of its kind to be entered into between the United
States and Luxembourg. Its signature is testi-
mony of the growing economic and cultural ties
between the two countries and the mutual ad-
vantage they perceive in providing a formally
agreed basis for the further development of such
ties between them. The treaty is, moreover, the
sixth international agreement regulating mutual
relations in establishment matters to be signed
with members of the European Economic Com-
munity and as such completes a uniform pattern
for such relations between the United States and
the member states of the Community.

The treaty will be submitted to the Senate for
advice and consent to ratification as soon as pos-
sible. After the constitutional procedures of
the two countries have been completed, it will enter
into force 1 month after the exchange of
ratifications.



Current Actions

MULTILATERAL

Atomic Energy

Amendment to article VI.A.3 of the Statute of the Inter-
national Atomic Energy Agency (TIAS 3873). Done
at Vienna October 4, 1901.'
Acceptance deposited: South Africa, February 20, 1962.

Aviation

Convention on international civil aviation. Done at Chi-
cago December 7, 1044. Entered into force April 4,
1957. TIAS 1591.

Adherence deposited: Saudi Arabia (vrith a statement),
February 19, 1962.

Trade and Commerce

Acknowledged applicable riyhts and obligations of United
Kingdom: Tanganyika, January 16, 1962, with respect
to the following :

Declaration on provisional accession of the Swiss Con-
federation to the General Agreement on Tariffs and
Trade. Done at Geneva November 22, 1958. Entered
into force January 1, 1960; for the United States April
29, 1960. TIAS 4461.

Declaration on relations between contracting parties to
the General Agreement on Tariffs and Trade and the
Federal People's Republic of Yugoslavia. Done at
Geneva May 25, 1959. Entered into force November 16,
19.59 ; for the United States November 19, 1959. TIAS
4385.

Declaration on provisional accession of Israel to the Gen-
eral Agreement on Tariffs and Trade. Done at Geneva
May 29, 1959. Entered into force October 9, 1959; for
the United States December 19, lO.^SO. TIAS 4384.

BILATERAL

Bolivia

Agricultural commodities agreement under title I of the
Agricultural Trade Development and Assistance Act



of 1954, as amended (68 Stat. 455; 7 U.S.C. 1701-1709),
with exchanges of notes. Signed at La Paz February
12, 1962. Entered into force February 12, 1962.

Luxembourg

Treaty of friendship, establishment, and navigation
Signed at Luxembourg February 23, 1962. Enters int«
force 1 month after exchange of instruments of ratifica-
tion.

Pakistan

Agreement amending the agreement of September 23,
1950, as amended (TIAS 2116 and 3919), for financing
certain educational exchange programs. Effected by
exchange of notes at Karachi July 29, 1960, July 10,

1961, and November 13, 1961. Entered into force No-
vember 13, 1961.

United Arab Republic

Agricultural commodities agreement under title I of the
Agricultural Trade Development and Assistance Act
of 1954, as amended (68 Stat. 455: 7 U.S.C. 1701-1709),
with exchange of notes. Signed at Cairo February 10,

1962. Entered into force February 10, 1962.



DEPARTMENT AND FOREIGN SERVICE



' Not in force.



Mission to West Indies Terminated;
Office Reverts to Consulate General

Depart7nent Announcement

Press release 100 dated Febrnary 14

In view of the statement by the British Govern-
ment on February 6, 1962, that it intends to intro-
duce legislation into Parliament enabling it to
dissolve the federation of The West Indies, the
Department of State has decided to terminate the
United States Mission in Port-of-Spain, effective
Marcli 1, 1962. As of that date the office in Port-
of-Spain will revert to its former status of a con-
sulate general responsible for American consular
activities in Trinidad and Tobago.

Confirmations

The Senate on February 19 confirmed the following
nominations :

W. Averell Harriman to be an Assistant Secretary of
State.

Walter P. McConaughy to be Ambassador to Pakistan.
(For biographic details, see Department of State press
release 134 dated March 1.)

Walt Whitman Rostow to be Counselor of the Depart-
ment of State.



438



Department of State Bulletin



March 12, 1962



Index



Vol. XLVI, No. 1185



Atomic Energy. U.S., U.K. Pledge Redoubled Ef-
forts To Reach Nuclear Test Ban Agreement
(text of report) 409

Cameroon. Presidents of Cameroon and Cypnis To

Visit United States 418

Cyprus. Presidents of Cameroon and Cypnis To

Visit United States 418

Department and Foreign Service

Confirmations (Ilarriman, McConaugliy, Rostow) . 438

Mission to West Indies Terminated ; Office Reverts

to Consulate General 438

Dominican Republic. Dr. Pico Named Special Rep-
resentative of President in Dominican Republic . 425

Economic Affairs

CENTO Economic Committee (delegation) . . . 436

GATT Members Conclude Long-Term Cotton Tex-
tile Arrangement (text of agreement) .... 430

The Less Developed Countries and the Atlantic

Partnership (Ball) 412

Policy for the Western Alliance— Berlin and After

(Bundy) 419

Trade and Aid — Essentials of Free-World Leader-
ship (Rusk) 403

United States and Luxembourg Sign FEN Treaty . 437

The United States in a Competitive World Econ-
omy (Coppock) 426

World Bank Reports Total Reserves of $651.7

Million 435

Europe

The Less Developed Countries and the Atlantic

Partnership (Ball) 412

Policy for the Western Alliance — Berlin and After

(Biindy) 419

The United States in a Competitive World Econ-
omy (Coppock) 426

Finland. President Kennedy Congratulates Presi-
dent of Finland on Reelection 418

Foreign Aid

Dr. Pico Named Special Representative of Presi-



Online LibraryUnited States. Dept. of State. Office of Public CoDepartment of State bulletin (Volume v. 46, Jan- Mar 1962) → online text (page 84 of 101)