PROTOCOL AMENDING THE PREAMBLE AND PARTS II AND III OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE

THE GOVERNMENTS WHICH ARE CONTRACTING PARTIES TO THE GENERAL AGREEMENT ON TARIFFS AND TRADE (HEREINAFTER REFERRED TO AS "THE CONTRACTING PARTIES" AND "THE GENERAL AGREEMENT" RESPECTIVELY),

DESIRING TO EFFECT AN AMENDMENT TO THE GENERAL AGREEMENT, PURSUANT TO THE PROVISIONS OF ARTICLE XXX THEREOF,

HEREBY AGREE AS FOLLOWS:

1.  THE PROVISIONS OF THE PREAMBLE, AND OF CERTAIN ARTICLES OF THE GENERAL AGREEMENT, AND OF CERTAIN ANNEXES THERETO, SHALL BE AMENDED, AND A NEW ARTICLE SHALL BE INSERTED THEREIN, AS FOLLOWS:

A

SUBJECT TO THE PROVISIONS OF PARAGRAPH 8(A) OF THIS PROTOCOL, THE FOUR PARAGRAPHS OF THE PREAMBLE SHALL BE DELETED.

B

SUBJECT TO THE PROVISIONS OF PARAGRAPH 8(A) OF THIS PROTOCOL, PARAGRAPH 10 OF ARTICLE III (WHICH IS, PURSUANT TO SECTION RR OF THIS PROTOCOL, TO BECOME ARTICLE IV, BUT WHICH IS HEREINAFTER REFERRED TO AS "ARTICLE III") SHALL READ:

"10.  THE PROVISIONS OF THIS ARTICLE SHALL NOT PREVENT ANY CONTRACTING PARTY FROM ESTABLISHING OR MAINTAINING INTERNAL QUANTITATIVE REGULATIONS RELATING TO EXPOSED CINEMATOGRAPH FILMS.  IF ANY CONTRACTING PARTY ESTABLISHES OR MAINTAINS SUCH REGULATIONS THEY SHALL TAKE THE FORM OF SCREEN QUOTAS WHICH SHALL CONFORM TO THE FOLLOWING REQUIREMENTS:

"(A) SCREEN QUOTAS MAY REQUIRE THE EXHIBITION OF CINEMATOGRAPH FILMS OF NATIONAL ORIGIN DURING A SPECIFIED MINIMUN PROPORTION OF THE TOTAL SCREEN TIME ACTUALLY UTILIZED, OVER A SPECIFIED PERIOD OF NOT LESS THAN ONE YEAR, IN THE COMMERCIAL EXHIBITION OF ALL FILMS OF WHATEVER ORIGIN, AND SHALL BE COMPUTED ON THE BASIS OF SCREEN TIME PER THEATRE PER YEAR OR THE EQUIVALENT THEREOF;

"(B) WITH THE EXCEPTION OF SCREEN TIME RESERVED FOR FILMS OF NATIONAL ORIGIN UNDER A SCREEN QUOTA, SCREEN TIME INCLUDING THAT RELEASED BY ADMINISTRATIVE ACTION FROM SCREEN TIME RESERVED FOR FILMS OF NATIONAL ORIGIN, SHALL NOT BE ALLOCATED FORMALLY OR IN EFFECT AMONG SOURCES OF SUPPLY;

"(C) NOTWITHSTANDING THE PROVISIONS OF SUB-PARAGRAPH (B) OF THIS PARAGRAPH, ANY CONTRACTING PARTY MAY MAINTAIN SCREEN QUOTAS CONFORMING TO THE REQUIREMENTS OF SUB-PARAGRAPH (A) OF THIS PARAGRAPH WHICH RESERVE A MINIMUM PROPORTION OF SCREEN TIME FOR FILMS OF A SPECIFIED ORIGIN OTHER THAN THAT OF THE CONTRACTING PARTY IMPOSING SUCH SCREEN QUOTAS; PROVIDED THAT NO SUCH MINIMUM PROPORTION OF SCREEN TIME SHALL BE INCREASED ABOVE THE LEVEL IN EFFECT ON 10 APRIL 1947;

"(D) SCREEN QUOTAS SHALL BE SUBJECT TO NEGOTIATION FOR THEIR LIMITATION, LIBERALIZATION OR ELIMINATION."

C

SUBJECT TO THE PROVISIONS OF PARAGRAPH 8(A) OF THIS PROTOCOL, ARTICLE IV (BEFORE AMENDMENT PURSUANT TO SECTION B OF THIS PROTOCOL) SHALL BE DELETED.

D

PARAGRAPH 6 OF ARTICLE VI SHALL READ AS FOLLOWS:

"6.  (A) NO CONTRACTING PARTY SHALL LEVY ANY ANTI-DUMPING OR COUNTERVAILING DUTY ON THE IMPORTATION OF ANY PRODUCT OF THE TERRITORY OF ANOTHER CONTRACTING PARTY UNLESS IT DETERMINES THAT THE EFFECT OF THE DUMPING OR SUBSIDIZATION, AS THE CASE MAY BE, IS SUCH AS TO CAUSE OR THREATEN MATERIAL INJURY TO AN ESTABLISHED DOMESTIC INDUSTRY, OR IS SUCH AS TO RETARD MATERIALLY THE ESTABLISHMENT OF A DOMESTIC INDUSTRY.

"(B) THE CONTRACTING PARTIES MAY WAIVE THE REQUIREMENT OF SUB-PARAGRAPH (A) OF THIS PARAGRAPH SO AS TO PERMIT A CONTRACTING PARTY TO LEVY AN ANTI-DUMPING OR COUNTERVAILING DUTY ON THE IMPORTATION OF ANY PRODUCT FOR THE PURPOSE OF OFFSETTING DUMPING OR SUBSIDIZATION WHICH CAUSES OR THREATENS MATERIAL INJURY TO AN INDUSTRY IN THE TERRITORY OF ANOTHER CONTRACTING PARTY EXPERTING THE PRODUCT CONCERNED TO THE TERRITORY OF THE IMPORTING CONTRACTING PARTY.  THE CONTRACTING PARTIES SHALL WAIVE THE REQUIREMENTS OF SUB-PARAGRAPH (A) OF THIS PARAGRAPH, SO AS TO PERMIT THE LEVYING OF A COUNTERVAILING DUTY, IN CASES IN WHICH THEY FIND THAT A SUBSIDY IS CAUSING OR THREATENING MATERIAL INJURY TO AN INDUSTRY IN THE TERRITORY OF ANOTHER CONTRACTING PARTY EXPORTING THE PRODUCT CONCERNED TO THE TERRITORY OF THE IMPORTING CONTRACTING PARTY.

"(C) IN EXCEPTIONAL CIRCUMSTANCES, HOWEVER, WHERE DELAY MIGHT CAUSE DAMAGE WHICH WOULD BE DIFFICULT TO REPAIR, A CONTRACTING PARTY MAY LEVY A COUNTERVAILING DUTY FOR THE PURPOSE REFERRED TO IN SUB-PARAGRAPH (B) OF THIS PARAGRAPH WITHOUT THE PRIOR APPROVAL OF THE CONTRACTING PARTIES; PROVIDED THAT SUCH ACTION SHALL BE REPORTED IMMEDIATELY TO THE CONTRACTING PARTIES AND THAT THE COUNTERVAILING DUTY SHALL BE WITHDRAWN PROMPTLY IF THE CONTRACTING PARTIES DISAPPROVE."

E

ARTICLE VII SHALL BE AMENDED AS FOLLOWS:

(I) THE WORDS", AT THE EARLIEST PRACTICABLE DATE" IN PARAGRAPH 1 SHALL BE DELETED.

(II) THE FIRST SENTENCE OF PARAGRAPH 2(B) SHALL READ:

"ACTUAL VALUE" SHOULD BE THE PRICE AT WHICH, AT A TIME AND PLACE DETERMINED BY THE LEGISLATION OF THE COUNTRY OF IMPORTATION, SUCH OR LIKE MERCHANDISE IS SOLD OR OFFERED FOR SALE IN THE ORDINARY COURSE OF TRADE UNDER FULLY COMPETITIVE CONDITIONS."

(III) PARAGRAPH 4(A) AND (B) SHALL READ:

"4.  (A) EXCEPT AS OTHERWISE PROVADED FOR IN THIS PARAGRAPH, WHERE IT IS NECESSARY FOR THE PURPOSES OF PARAGRAPH 2 OF THIS ARTICLE FOR A CONTRACTING PARTY TO CONVERT INTO ITS OWN CURRENCY A PRICE EXPRESSED IN THE CURRENCY OF ANOTHER COUNTRY, THE CONVERSION RATE OF EXCHANGE TO BE USED SHALL BE BASED, FOR EACH CURRENCY INVOLVED, ON THE PAR VALUE AS ESTABLISHED PURSUANT TO THE ARTICLES OF AGREEMENT OF THE INTERNATIONAL MONETARY FUND OR ON THE RATE OF EXCHANGE RECOGNIZED BY THE FUND, OR ON THE PAR VALUE ESTABLISHED IN ACCORDANCE WITH A SPECIAL EXCHANGE AGREEMENT ENTERED INTO PURSUANT TO ARTICLE XV OF THIS AGREEMENT.

"(B) WHERE NO SUCH ESTABLISHED PAR VALUE AND NO SUCH RECOGNIZED RATE OF EXCHANGE EXIST, THE CONVERSION RATE SHALL REFLECT EFFECTIVELY THE CURRENT VALUE OF SUCH CURRENCY IN COMMERCIAL TRANSACTIONS."

F

ARTICLE VIII SHALL BE AMENDED AS FOLLOWS:

(I) THE TITLE SHALL READ: "FEES AND FORMALITIES CONNECTED WITH IMPORTATION AND EXPORTATION"

(II) PARAGRAPHS 1 AND 2 SHALL READ:

"1.  (A) ALL FEES AND CHARGES OF WHATEVER CHARACTER (OTHER THAN IMPORT AND EXPORT DUTIES AND OTHER THAN TAXES WITHIN THE PURVIEW OF ARTICLE III) IMPOSED BY CONTRACTING PARTIES ON OR IN CONNEXION WITH IMPORTATION OR EXPORTATION SHALL BE LIMITED IN AMOUNT TO THE APPROXIMATE COST OF SERVICES RENDERED AND SHALL NOT REPRESENT AN INDIRECT PROTECTION TO DOMESTIC PRODUCTS OR A TAXATION OF IMPORTS OR EXPORTS FOR FISCAL PURPOSES.

"(B) THE CONTRACTING PARTICS RECOGNIZE THE NEED FOR REDUCING THE NUMBER AND DIVERSITY OF FEES AND CHARGES REFERRED TO IN SUB-PARAGRAPH (A).

"(C) THE CONTRACTING PARTIES ALSO RECOGNIZE THE NEED FOR MINIMIZING THE INCIDENCE AND COMPLEXITY OF IMPORT AND EXPORT FORMALITIES AND FOR DECREASING AND SIMPLIFYING IMPORT AND EXPORT DOCUMENTATION REQUIREMENTS.

"2.  A CONTRACTING PARTY SHALL, UPON REQUEST BY ANOTHER CONTRACTING PARTY OR BY THE CONTRACTING PARTIES, REVIEW THE OPERATION OF ITS LAWS AND REGULATIONS IN THE LIGHT OF THE PROVISIONS OF THIS ARTICLE."

G

ARTICLE IX SHALL BE AMENDED AS FOLLOWS:

(I) THE FOLLOWING NEW PARAGRAPH SHALL BE INSERTED IMMEDIATELY AFTER PARAGRAPH 1:

"2.  THE CONTRACTING PARTIES RECOGNIZE THAT, IN ADOPTING AND ENFORCING LAWS AND REGULATIONS RELATING TO MARKS OF ORIGIN, THE DIFFICULTIES AND INCONVENIENCES WHICH SUCH MEASURES MAY CAUSE TO THE COMMERCE AND INDUSTRY OF EXPORTING COUNTRIES SHOULD BE REDUCED TO A MINIMUM, DUE REGARD BEING HAD TO THE NECESSITY OF PROTECTING CONSUMERS AGAINST FRAUDULENT OR MISLEADING INDICATIONS."

(II) PARAGRAPHS 2, 3, 4 AND 5 SHALL BE RENUMBERED 3, 4, 5 AND 6, RESPECTIVELY.

H

ARTICLE XI SHALL BE AMENDED BY THE DELETION THEREFROM OF PARAGRAPH 3.

I

ARTICLE XII SHALL READ:

"ARTICLE XII "RESTRICTIONS TO SAFEGUARD THE BALANCE OF PAYMENTS

"1.  NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH 1 OF ARTICLE XI, ANY CONTRACTING PARTY, IN ORDER TO SAFEGUARD ITS EXTERNAL FINANCIAL POSITION AND ITS BALANCE OF PAYMENTS, MAY RESTRICT THE QUANTITY OR VALUE OF MERCHANDISE PERMITTED TO BE IMPORTED, SUBJECT TO THE PROVISIONS OF THE FOLLOWING PARAGRAPHS OF THIS ARTICLE.

"2.  (A) IMPORT RESTRICTIONS INSTITUTED, MAINTAINED OR INTENSIFIED BY A CONTRACTING PARTY UNDER THIS ARTICLE SHALL NOT EXCEED THOSE NECESSARY:

"(I) TO FORESTALL THE IMMINENT THREAT OF, OR TO STOP, A SERIOUS DECLINE IN ITS MONETARY RESERVES, OR

"(II) IN THE CASE OF A CONTRACTING PARTY WITH VERY LOW MONETARY RESERVES, TO ACHIEVE A REASONABLE RATE OF INCREASE IN ITS RESERVES.

"DUE REGARD SHALL BE PAID IN EITHER CASE TO ANY SPECIAL FACTORS WHICH MAY BE AFFECTING THE RESERVES OF SUCH CONTRACTING PARTY OR ITS NEED FOR RESERVES, INCLUDING, WHERE SPECIAL EXTERNAL CREDITS OR OTHER RESOURCES ARE AVAILABLE TO IT, THE NEED TO PROVIDE FOR THE APPROPRIATE USE OF SUCH CREDITS OR RESOURCES.

"(B) CONTRACTING PARTIES APPLYING RESTRICTIONS UNDER SUBPARAGRAPH (A) OF THIS PARAGRAPH SHALL PROGRESSIVELY RELAX THEM AS SUCH CONDITIONS IMPROVE, MAINTAINING THEM ONLY TO THE EXTENT THAT THE CONDITIONS SPECIFIED IN THAT SUB-PARAGRAPH STILL JUSTIFY THEIR APPLICATION.  THEY SHALL ELIMINATE THE RESTRICTIONS WHEN CONDITIONS WOULD NO LONGER JUSTIFY THEIR INSTITUTION OR MAINTENANCE UNDER THAT SUB-PARAGRAPH.

"3.  (A) CONTRACTING PARTIES UNDERTAKE, IN CARRYING OUT THEIR DOMESTIC POLICIES, TO PAY DUE REGARD TO THE NEED FOR MAINTAINING OR RESTORING EQUILIBRIUM IN THEIR BALANCE OF PAYMENTS ON A SOUND AND LASTING BASIS AND TO THE DESIRABILITY OF AVOIDING AN UNECONOMIC EMPLOYMENT OF PRODUCTIVE PESOURCES.  THEY RECOGNIZE THAT IN ORDER TO ACHIEVE THESE ENDS, IT IS DESIRABLE SO FAR AS POSSIBLE TO ADOPT MEASURES WHICH EXPAND RATHER THAN CONTRACT INTERNATIONAL TRADE.

"(B) CONTRACTING PARTIES APPLYING RESTRICTIONS UNDER THIS ARTICLE MAY DETERMINE THE INCIDENCE OF THE RESTRICTIONS ON IMPORTS OF DIFFERENT PRODUCTS OR CLASSES OF PRODUCTS IN SUCH A WAY AS TO GIVE PRIORITY TO THE IMPORTATION OF THOSE PRODUCTS WHICH ARE MORE ESSENTIAL.

"(C) CONTRACTING PARTIES APPLYING RESTRICTIONS UNDER THIS ARTICLE UNDERTAKE:

"(I) TO AVOID UNNECESSARY DAMAGE TO THE COMMERCIAL OR ECONOMIC INTERESTS OF ANY OTHER CONTRACTING PARTY;

"(II) NOT TO APPLY RESTRICTIONS SO AS TO PREVENT UNREASONABLY THE IMPORTATION OF ANY DESCRIPTION OF GOODS IN MINIMUM COMMERCIAL QUANTITIES THE EXCLUSION OF WHICH WOULD IMPAIR REGULAR CHANNELS OF TRADE; AND

"(III) NOT TO APPLY RESTRICTIONS WHICH WOULD PREVENT THE IMPORTATION OF COMMERCIAL SAMPLES OR PREVENT COMPLIANCE WITH PATENT, TRADE MARK, COPYRIGHT, OR SIMILAR PROCODURES.

"(D) THE CONTRACTING PARTIES RECOGNIZE THAT, AS A RESULT OF DOMESTIC POLICIES DIRECTED TOWARDS THE ACHIEVEMENT AND MAINTENANCE OF FULL AND PRODUCTIVE EMPLOYMENT OR TOWARDS THE DEVELOPMENT OF ECONOMIC RESOURCES, A CONTRACTING PARTY MAY EXPERIENCE A HIGH LEVEL OF DEMAND FOR IMPORTS INVOLVING A THREAT TO ITS MONETARY RESERVES OF THE SORT REFERRED TO IN PARAGRAPH 2(A) OF THIS ARTICLE.  ACCORDINGLY, A CONTRACTING PARTY OTHERWISE COMPLYING WITH THE PROVISIONS OF THIS ARTICLE SHALL NOT BE REQUIRED TO WITHDRAW OR MODIFY RESTRICTIONS ON THE GROUND THAT A CHANGE IN THOSE POLICIES WOULD RENDOR UNNECESSARY RESTRICTIONS WHICH IT IS APPLYING UNDER THIS ARTICLE.

"4.  (A) ANY CONTRACTING PARTY APPLYING NEW RESTRICTIONS OR RAISING THE GENERAL LEVEL OF ITS EXISTING RESTRIETIONS BY A SUBSTANTIAL INTENSIFIEATION OF THE MEASURES APPLIED UNDER THIS ARTICLE SHALL IMMEDIATELY AFTER INSTITUTING OR INTENSIFYING SUCH RESTRICTIONS (OR, IN CIRCUMSTANCES IN WHICH PRIOR CONSULTATION IS PRACTICABLE, BEFORE DOING SO) CONSULT WITH THE CONTRACTING PARTIES AS TO THE NATURE OF ITS BALANCE OF PAYMENTS DIFFICULTIES, ALTERNATIVE CORRECTIVE MEASURES WHICH MAY BE AVAILABLE, AND THE POSSIBLE EFFECT OF THE RESTRICTIONS ON THE ECONOMIES OF OTHER CONTRACTING PARTIES.

"(B) ON A DATE TO BE DETERMINED BY THEM, THE CONTRACTING PARTIES SHALL REVIEW ALL RESTRICTIONS STILL APPLIED UNDER THIS ARTICLE ON THAT DATE.  BEGINNING ONE YEAR AFTER THAT DATE, CONTRACTING PARTIES APPLYING IMPORT RESTRICTIONS UNDER THIS ARTICLE SHALL ENTER INTO CONSULTATIONS OF THE TYPE PROVIDED FOR IN SUB-PARAGRAPH (A) OF THIS PARAGRAPH WITH THE CONTRACTING PARTIES ANNUALLY.

"(C) (I) IF, IN THE COURSE OF CONSULTATIONS WITH A CONTRACTING PARTY UNDER SUB-PARAGRAPH (A) OR (B) ABOVE, THE CONTRACTING PARTIES FIND THAT THE RESTRICTIONS ARE NOT CONSISTENT WITH THE PROVISIONS OF THIS ARTICLE OR WITH THOSE OF ARTICLE XIII (SUBJECT TO THE PROVISIONS OF ARTICLE XIV), THEY SHALL INDICATE THE NATURE OF THE INCONSISTENCY AND MAY ADVISE THAT THE RESTRICTIONS BE SUITABLY MODIFIED.

"(II) IF, HOWEVER, AS A RESULT OF THE CONSULTATIONS, THE CONTRACTING PARTIES DETERMINE THAT THE RESTRICTIONS ARE BEING APPLIED IN A MANNER INVOLVING AN INCONSISTENCY OF A SERIOUS NATURE WITH THE PROVISIONS OF THIS ARTICLE OR WITH THOSE OF ARTICLE XIII (SUBJECT TO THE PROVISIONS OF ARTICLE XIV) AND THAT DAMAGE TO THE TRADE OF ANY CONTRACTING PARTY IS CAUSED OR THREATENED THEREBY, THEY SHALL SO INFORM THE CONTRACTING PARTY APPLYING THE RESTRICTIONS AND SHALL MAKE APPROPRIATE RECOMMENDATIONS FOR SECURING CONFORMITY WITH SUCH PROVISIONS WITHIN A SPECIFIED PERIOD OF TIME.  IF SUCH CONTRACTING PARTY DOES NOT COMPLY WITH THOSE RECOMMENDATIONS WITHIN THE SPECIFIED PERIOD, THE CONTRACTING PARTIES MAY RELEASE ANY CONTRACTING PARTY THE TRADE OF WHICH IS ADVERSELY AFFECTED BY THE RESTRICTIONS FROM SUCH OBLIGATIONS UNDER THIS AGREEMENT TOWARDS THE CONTRACTING PARTY APPLYING THE RESTRICTIONS AS THEY DETERMINE TO BE APPROPRIATE IN THE CIRCUMSTANCES.

"(D) THE CONTRACTING PARTIES SHALL INVITE ANY CONTRACTING PARTY WHICH IS APPLYING RESTRICTIONS UNDER THIS ARTICLE TO ENTER INTO CONSULTATIONS WITH THEM AT THE REQUEST OF ANY CONTRACTING PARTY WHICH CAN ESTABLISH A PRIMA FACIE CASE THAT THE RESTRICTIONS ARE INCONSISTENT WITH THE PROVISIONS OF THIS ARTICLE OR WITH THOSE OF ARTICLE XIII (SUBJECT TO THE PROVISIONS OF ARTICLE XIV) AND THAT ITS TRADE IS ADVERSELY AFFECTED THEREBY.  HOWEVER, NO SUCH INVITATION SHALL BE ISSUED UNLESS THE CONTRACTING PARTIES HAVE ASCERTAINED THAT DIRECT DISCUSSIONS BETWEEN THE CONTRACTING PARTIES CONCERNED HAVE NOT BEEN SUCCESSFUL.  IF, AS A RESULT OF THE CONSULTATIONS WITH THE CONTRACTING PARTIES, NO AGREEMENT IS REACHED AND THEY DETERMINE THAT THE RESTRICTIONS ARE BEING APPLIED INCONSISTENTLY WITH SUCH PROVISIONS, AND THAT DAMAGE TO THE TRADE OF THE CONTRACTING PARTY INITIATING THE PROCEDURE IS CAUSED OR THREATENED THEREBY, THEY SHALL RECOMMEND THE WITHDRAWAL OR MODIFICATION OF THE RESTRICTIONS.  IF THE RESTRICTIONS ARE NOT WITHDRAWN OR MODIFIED WITHIN SUCH TIME AS THE CONTRACTING PARTIES MAY PRESCRIBE, THEY MAY RELEASE THE CONTRACTING PARTY INITIATING THE PROCEDURE FROM SUCH OBLIGATIONS UNDER THIS AGREEMENT TOWARDS THE CONTRACTING PARTY APPLYING THE RESTRICTIONS AS THEY DETERMINE TO BE APPROPRIATE IN THE CIRCUMSTANCES.

"(E) IN PROCEEDING UNDER THIS PARAGRAPH, THE CONTRACTING PARTIES SHALL HAVE DUE REGARD TO ANY SPECIAL EXTERNAL FACTORS ADVERSELY AFFECTING THE EXPORT TRADE OF THE CONTRACTING PARTY APPLYING RESTRICTIONS.

"(F) DETERMINATIONS UNDER THIS PARAGRAPH SHALL BE RENDERED EXPEDITIOUSLY AND, IF POSSIBLE, WITHIN SIXTY DAYS OF THE INITIATION OF THE CONSULTATIONS.

"5.  IF THERE IS A PERSISTENT AND WIDESPREAD APPLICATION OF IMPORT RESTRICTIONS UNDER THIS ARTICLE, INDICATING THE EXISTENCE OF A GENERAL DISEQUILIBRIUM WHICH IS RESTRICTING INTERNATIONAL TRADE, THE CONTRACTING PARTIES SHALL INITIATE DISCUSSIONS TO CONSIDER WHETHER OTHER MEASURES MIGHT BE TAKEN, EITHER BY THOSE CONTRACTING PARTIES THE BALANCES OF PAYMENTS OF WHICH ARE UNDER PRESSURE OR BY THOSE THE BALANCES OF PAYMENTS OF WHICH ARE TENDING TO BE EXCEPTIONALLY FAVOURABLE, OR BY ANY APPROPRIATE INTERGOVERNMENTAL ORGANIZATION, TO REMOVE THE UNDERLYING CAUSES OF THE DISEQUILIBRIUM.  ON THE INVITATION OF THE CONTRACTING PARTIES, CONTRACTING PARTIES SHALL PARTICIPATE IN SUCH DISCUSSIONS."

J

ARTICLE XIV SHALL BE AMENDED AS FOLLOWS;

(I) SUBJECT TO THE PROVISIONS OF PARAGRAPH 8(C) OF THIS PROTOCOL, PARAGRAPH 1 SHALL READ:

"1.  A CONTRACTING PARTY WHICH APPLIES RESTRICTIONS UNDER ARTICLE XII OR UNDER SECTION B OF ARTICLE XVIII MAY, IN THE APPLICATION OF SUCH RESTRICTIONS, DEVIATE FROM THE PROVISIONS OF ARTICLE XIII IN A MANNER HAVING EQUIVALENT EFFECT TO RESTRICTIONS ON PAYMENTS AND TRANSFERS FOR CURRENT INTERNATIONAL TRANSACTIONS WHICH THAT CONTRACTING PARTY MAY AT THAT TIME APPLY UNDER ARTICLE VIII OR XIV OF THE ARTICLES OF AGREEMENT OF THE INTERNATIONAL MONETARY FUND, OR UNDER ANALOGOUS PROVISIONS OF A SPECIAL EXCHANGE AGREEMENT ENTERED INTO PURSUANT TO PARAGRAPH 6 OF ARTICLE XV."

(II) THE PARAGRAPHS OTHER THAN PARAGRAPH 1 SHALL READ:

"2.  A CONTRACTING PARTY WHICH IS APPLYING IMPORT RESTRICTIONS UNDER ARTICLE XII OR UNDER SECTION B OF ARTICLE XVIII MAY, WITH THE CONSENT OF THE CONTRACTING PARTIES, TEMPORARILY DEVIATE FROM THE PROVISIONS OF ARTICLE XIII IN RESPECT OF A SMALL PART OF ITS EXTERNAL TRADE WHERE THE BENEFITS TO THE CONTRACTING PARTY OR CONTRACTING PARTIES CONCERNED SUBSTANTIALLY OUTWEIGH ANY INJURY WHICH MAY RESULT TO THE TRADE OF OTHER CONTRACTING PARTIES.

"3.  THE PROVISIONS OF ARTICLE XIII SHALL NOT PRECLUDE A GROUP OF TERRITORIES HAVING A COMMON QUOTA IN THE INTERNATIONAL MONETARY FUND FROM APPLYING AGAINST IMPORTS FROM OTHER COUNTRIES, BUT NOT AMONG THEMSELVES, RESTRICTIONS IN ACCORDANCE WITH THE PROVISIONS OF ARTICLE XII OR OF SECTION B OF ARTICLE XVIII ON CONDITION THAT SUCH RESTRICTIONS ARE IN ALL OTHER RESPECTS CONSISTENT WITH THE PROVISIONS OF ARTICLE XIII.

"4.  A CONTRACTING PARTY APPLYING IMPORT RESTRICTIONS UNDER ARTICLE XII OR UNDER SECTION B OF ARTICLE XVIII SHALL NOT BE PRECLUDED BY ARTICLES XI TO XV OR SECTION B OF ARTICLE XVIII OF THIS AGREEMENT FROM APPLYING MEASURES TO DIRECT ITS EXPORTS IN SUCH A MANNER AS TO INCREASE ITS EARNINGS OF CURRENCIES WHICH IT CAN USE WITHOUT DEVIATION FROM THE PROVISIONS OF ARTICLE XIII.

"5.  A CONTRACTING PARTY SHALL NOT BE PRECLUDED BY ARTICLES XI TO XV, INCLUSIVE, OR BY SECTION B OF ARTICLE XVIII, OF THIS AGREEMENT FROM APPLYING QUANTITATIVE RESTRICTIONS:

"(A) HAVING EQUIVALENT EFFECT TO EXCHANGE RESTRICTIONS AUTHORIZED UNDER SECTION 3(B) OF ARTICLE VII OF THE ARTICLES OF AGREEMENT OF THE INTERNATIONAL MONETARY FUND, OR

"(B) UNDER THE PREFERENTIAL ARRANGEMENTS PROVIDED FOR IN ANNEX A OF THIS AGREEMENT, PENDING THE OUTCOME OF THE NEGOTIATIONS REFERRED TO THEREIN."

K

ARTICLE XV SHALL BE AMENDED BY THE INSERTION OF THE FOLLOWING WORDS IN THE THIRD SENTENCE OF PARAGRAPH 2 IMMEDIATELY AFTER THE WORDS "IN PARAGRAPH 2(A) OF ARTICLE XII": "OR IN PARAGRAPH 9 OF ARTICLE XVIII".

L

ARTICLE XVI SHALL BE AMENDED AS FOLLOWS:

(I) THE SINGLE PARAGRAPH OF THE PRESENT ARTICLE SHALL BE NUMBERED PARAGRAPH 1 AND SHALL BE PRECEDED BY THE SUB-TITLE: "SECTION A - SUBSIDIES IN GENERAL"

(II) THE FOLLOWING NEW SECTION SHALL BE ADDED:

"SECTION B - ADDITIONAL PROVISIONS ON EXPORT SUBSIDIES"

"2.  THE CONTRACTING PARTIES RECOGNIZE THAT THE GRANTING BY A CONTRACTING PARTY OF A SUBSIDY ON THE EXPORT OF ANY PRODUCT MAY HAVE HARMFUL EFFECTS FOR OTHER CONTRACTING PARTIES, BOTH IMPORTING AND EXPORTING, MAY CAUSE UNDUE DISTURBANCE TO THEIR NORMAL COMMERCIAL INTERESTS, AND MAY HINDER THE ACHIEVEMENT OF THE OBJECTIVES OF THIS AGREEMENT.

"3.  ACCORDINGLY, CONTRACTING PARTIES SHOULD SEEK TO AVOID THE USE OF SUBSIDIES ON THE EXPORT OF PRIMARY PRODUCTS.  IF, HOWEVER, A CONTRACTING PARTY GRANTS DIRECTLY OR INDIRECTLY ANY FORM OF SUBSIDY WHICH OPERATES TO INCREASE THE EXPERT OF ANY PRIMARY PRODUCT FROM ITS TERRITORY, SUCH SUBSIDY SHALL NOT BE APPLIED IN A MANNER WHICH RESULTS IN THAT CONTRACTING PARTY HAVING MORE THAN AN EQUITABLE SHARE OF WORLD EXPERT TRADE IN THAT PRODUCT, ACCOUNT BEING TAKEN OF THE SHARES OF THE CONTRACTING PARTIES IN SUCH TRADE IN THE PRODUCT DURING A PREVIOUS REPRESENTATIVE PERIOD, AND ANY SPECIAL FACTORS WHICH MAY HAVE AFFECTED OR MAY BE AFFECTING SUCH TRADE IN THE PRODUCT.

"4.  FURTHER, AS FROM 1 JANUARY 1958 OR THE EARLIEST PRACTICABLE DATE THEREAFTER, CONTRACTING PARTIES SHALL CEAS TO GRANT EITHER DIRECTLY OR INDIRECTLY ANY FORM OF SUBSIDY ON THE EXPORT OF ANY PRODUCT OTHER THAN A PRIMARY PRODUCT WHICH SUBSIDY RESULTS IN THE SALE OF SUCH PRODUCT FOR EXPORT AT A PRICE LOWER THAN THE COMPARABLE PRICE CHARGED FOR THE LIKE PRODUCT TO BUYERS IN THE DOMESTIC MARKET.  UNTIL 31 DECEMBER 1957 NO CONTRACTING PARTY SHALL EXTEND THE SCOPE OF ANY SUCH SUBSIDIZATION BEYOND THAT EXISTING ON 1 JANUARY 1955 BY THE INTRODUCTION OF NEW, OR THE EXTENSION OF EXISTING, SUBSIDIES.

"5.  THE CONTRACTING PARTIES SHALL REVIEW THE OPERATION OF THE PROVISIONS OF THIS ARTICLE FROM TIME TO TIME WITH A VIEW TO EXAMINING ITS EFFECTIVENESS, IN THE LIGHT OF ACTUAL EXPERIENCE, IN PROMOTING THE OBJECTIVES OF THIS AGREEMENT AND AVOIDING SUBSIDIZATION SERIOUSLY PREJUDICIAL TO THE TRADE OR INTERESTS OF CONTRACTING PARTIES."

M

ARTICLE XVII SHALL BE AMENDED AS FOLLOWS:

(I) THE TITLE SHALL READ: "STATE TRADING ENTERPRISES"

(II) THE FOLLOWING NEW PARAGRAPHS SHALL BE ADDED:

"3.  THE CONTRACTING PARTIES RECOGNIZE THAT ENTERPRISES OF THE KIND DESCRIBED IN PARAGRAPH 1(A) OF THIS ARTICLE MIGHT BE OPERATED SO AS TO CREATE SERIOUS OBSTACLES TO TRADE; THUS NEGOTIATIONS ON A RECIPROCAL AND MUTUALLY ADVANTAGEOUS BASIS DESIGNED TO LIMIT OR REDUCE SUCH OBSTACLES ARE OF IMPORTANCE TO THE EXPANSION OF INTERNATIONAL TRADE.

"4.  (A) CONTRACTING PARTIES SHALL NOTIFY THE CONTRACTING PARTIES OF THE PRODUCTS WHICH ARE IMPORTED INTO OR EXPORTED FROM THEIR TERRITORIES BY ENTERPRISES OF THE KIND DESCRIBED IN PARAGRAPH 1(A) OF THIS ARTICLE.

"(B) A CONTRACTING PARTY ESTABLISHING, MAINTAINING OR AUTHORIZING AN IMPORT MONOPOLY OF A PRODUCT, WHICH IS NOT THE SUBJECT OF A CONCESSION UNDER ARTICLE II, SHALL, ON THE REQUEST OF ANOTHER CONTRACTING PARTY HAVING A SUBSTANTIAL TRADE IN THE PRODUCT CONCERNED, INFORM THE CONTRACTING PARTIES OF THE IMPORT MARKUP ON THE PRODUCT DURING A RECENT REPRESENTATIVE PERIOD, OR, WHEN IT IS NOT POSSIBLE TO DO SO, OF THE PRICE CHARGED ON THE RESALE OF THE PRODUCT.

"(C) THE CONTRACTING PARTIES MAY, AT THE REQUEST OF A CONTRACTING PARTY WHICH HAS REASON TO BELIEVE THAT ITS INTERESTS UNDER THIS AGREEMENT ARE BEING ADVERSELY AFFECTED BY THE OPERATIONS OF AN ENTERPRISE OF THE KIND DESCRIBED IN PARAGRAPH 1(A), REQUEST THE CONTRACTING PARTY ESTABLISHING, MAINTAINING OR AUTHORIZING SUCH ENTERPRISE TO SUPPLY INFORMATION ABOUT ITS OPERATIONS RELATED TO THE CARRYING OUT OF THE PROVISIONS OF THIS AGREEMENT.

"(D) THE PROVISIONS OF THIS PARAGRAPH SHALL NOT REQUIRE ANY CONTRACTING PARTY TO DISCLOSE CONFIDENTIAL INFORMATION WHICH WOULD IMPEDE LAW ENFORCEMENT OR OTHERWISE BE CONTRARY TO THE PUBLIC INTEREST OR WOULD PREJUDICE THE LEGITIMATE COMMERCIAL INTERESTS OF PARTICULAR ENTERPRISES."

N

ARTICLE XVIII SHALL READ AS FOLLOWS:

"ARTICLE XVIII "GOVERNMENTAL ASSISTANCE TO ECONOMIC DEVELOPMENT

"1.  THE CONTRACTING PARTIES RECOGNIZE THAT THE ATTAINMENT OF THE OBJECTIVES OF THIS AGREEMENT WILL BE FACILITATED BY THE PROGRESSIVE DEVELOPMENT OF THEIR ECONOMIES, PARTICULARLY OF THOSE CONTRACTING PARTIES THE ECONOMIES OF WHICH CAN ONLY SUPPORT LOW STANDERDS OF LIVING AND ARE IN THE EARLY STAGES OF DEVELOPMENT.

"2.  THE CONTRACTING PARTIES RECOGNIZE FURTHER THAT IT MAY BE NECESSARY FOR THOSE CONTRACTING PARTIES, IN ORDER TO IMPLEMENT PROGRAMMES AND POLICIES OF ECONOMIC DEVELOPMENT DESIGNED TO RAISE THE GENERAL STANDARD OF LIVING OF THEIR PEOPLE, TO TAKE PROTECTIVE OR OTHER MEASURES AFFECTING IMPORTS, AND THAT SUCH MEASURES ARE JUSTIFIED IN SO FAR AS THEY FACILITATE THE ATTAINMENT OF THE OBJECTIVES OF THIS AGREEMENT.  THEY AGREE, THEREFORE, THAT THOSE CONTRACTING PARTIES SHOULD ENJOY ADDITIONAL FACILITIES TO ENABLE THEM (A) TO MAINTAIN SUFFICIENT FLEXIBILITY IN THEIR TARIFF STRUCTURE TO BE ABLE TO GRANT THE TARIFF PROTECTION REQUIRED FOR THE ESTABLISHMENT OF A PARTICULAR INDUSTRY AND (B) TO APPLY QUANTITATIVE RESTRICTIONS FOR BALANCE OF PAYMENTS PURPOSES IN A MANNER WHICH TAKES FULL ACCOUNT OF THE CONTINUED HIGH LEVEL OF DEMAND FOR IMPORTS LIKELY TO BE GENERATED BY THEIR PROGRAMMES OF ECONOMIC DEVELOPMENT.

"3.  THE CONTRACTING PARTIES RECOGNIZE FINALLY THAT WITH THOSE ADDITIONAL FACILITIES WHICH ARE PROVIDED FOR IN SECTIONS A AND B OF THIS ARTICLE, THE PROVISIONS OF THIS AGREEMENT WOULD NORMALLY BE SUFFICIENT TO ENABLE CONTRACTING PARTIES TO MEET THE REQUIREMENTS OF THEIR ECONOMIC DEVELOPMENT.  THEY AGREE, HOWEVER, THAT THERE MAY BE CIRCUMSTANCES WHERE NO MEASURE CONSISTENT WITH THOSE PROVISIONS IS PRACTICABLE TO PERMIT A CONTRACTING PARTY IN THE PROCESS OF ECONOMIC DEVELOPMENT TO GRANT THE GOVERNMENTAL ASSISTANCE REQUIRED TO PROMOTE THE ESTABLISHMENT OF PARTICULAR INDUSTRIES WITH A VIEW TO RAISING THE GENERAL STANDARD OF LIVING OF ITS PEOPLE.  SPECIAL PROCEDURES ARE LAID DOWN IN SECTIONS C AND D OF THIS ARTICLE TO DEAL WITH THOSE CASES.

"4.  (A) CONSEQUENTLY, A CONTRACTING PARTY THE ECONOMY OF WHICH CAN ONLY SUPPORT LOW STANDARDS OF LIVING AND IS IN THE EARLY STAGES OF DEVELOPMENT SHALL BE FREE TO DEVIATE TEMPORARILY FROM THE PROVISIONS OF THE OTHER ARTICLES OF THIS AGREEMENT, AS PROVIDED IN SEETIONS A, B AND C OF THIS ARTICLE.

"(B) A CONTRACTING PARTY THE ECONOMY OF WHICH IS IN THE PROCESS OF DEVELEPMENT BUT WHICH DOES NOT COME WITHIN THE SCOPE OF SUB-PARAGRAPH (A) ABOVE, MAY SUBMIT APPLICATIONS TO THE CONTRACTING PARTIES UNDER SECTION D OF THIS ARTICLE.

"5.  THE CONTRACTING PARTIES RECOGNIZE THAT THE EXPORT EARNINGS OF CONTRACTING PARTIES THE ECONOMIES OF WHICH ARE OF THE TYPE DESCRIBED IN PARAGRAPH 4(A) AND (B) ABOVE, AND WHICH DEPEND ON EXPORTS OF A SMALL NUMBER OF PRIMARY COMMODITIES MAY BE SERICUSLY REDUCED BY A DECLINE IN THE SALE OF SUCH COMMODITIES.  ACCORDINGLY, WHEN THE EXPORTS OF PRIMARY COMMODITIES BY SUCH A CONTRACTING PARTY ARE SORIOUSLY AFFECTED BY MEASURES TAKEN BY ANOTHER CONTRACTING PARTY, IT MAY HAVE RESORT TO THE CONSULTATION PROVISIONS OF ARTICLE XXII OF THIS AGREEMENT.

"6.  THE CONTRACTING PARTIES SHALL REVIEW ANNUALLY ALL MEASURES APPLIED PURSUANT TO THE PROVISIONS OF SECTIONS C AND D OF THIS ARTICLE.

"SECTION A

"7.  (A) IF A CONTRACTING PARTY COMING WITHIN THE SCOPE OF PARAGRAPH 4(A) OF THIS ARTICLE CONSIDERS IT DESIREBLE, IN ORDER TO PROMOTE THE ESTABLISHMENT OF A PARTICULAR INDUSTRY WITH A VIEW TO RAISING THE GENERAL STANDARD OR LIVING OF ITS PEOPLE, TO MODIFY OR WITHDREW A CONCESSION INCLUDED IN THE APPROPRIATE SCHEDULE ANNEXED TO THIS AGREEMENT, IT SHALL NOTIFY THE CONTRACTING FARTIES TO THIS EFFECT AND ENTER INTO NEGOTIATIONS WITH ANY CONTRACTING PARTY WITH WHICH SUCH CONCESSION WAS INITIALLY NEGOTIATED, AND WITH ANY OTHER CONTRACTING PARTY DETERMINED BY THE CONTRACTING PARTIES TO HAVE A SUBSTANTIAL INTEREST THEREIN.  IF AGREEMENT IS REACHED BETWEEN SUCH CONTRACTING PARTIES CONCERNED, THEY SHALL BE FREE TO MODIFY OR WITHDRAW CONCESSIONS UNDER THE APPROPRIATE SCHEDULES TO THIS AGREEMENT IN ORDER TO GIVE EFFECT TO SUCH AGREEMENT, INCLUDING ANY COMPENSATORY ADJUSTMENTS INVOLVED.

"(B) IF AGREEMENT IS NOT REACHED WITHIN SIXTY DAYS AFTER THE NOTIFICATION PROVIDED FOR IN SUB-PARAGRAPH (A) ABOVE, THE CONTRACTING PARTY WHICH PROPOSES TO MODIFY OR WITHDRAW THE CONCESSION MAY REFER THE MATTER TO THE CONTRACTING PARTIES, WHICH SHALL PROMPTLY EXAMINE IT.  IF THEY FIND THAT THE CONTRACTING PARTY WHICH PROPOSES TO MODIFY OR WITHDRAW THE CONCESSION HAS MADE EVERY EFFORT TO REACH AN AGREEMENT AND THAT THE COMPENSATORY ADJUSTMENT OFFERED BY IT IS ADEQUATE, THAT CONTRACTING PARTY SHALL BE FREE TO MODIFY OR WITHDRAW THE CONCESSION IF AT THE SAME TIME, IT GIVES EFFECT TO THE COMPENSATORY ADJUSTMENT.  IF THE CONTRACTING PARTIES DO NOT FIND THAT THE COMPENSATION OFFERED BY A CONTRACTING PARTY PROPOSING TO MODIFY OR WITHDRAW THE CONCESSION IS ADEQUATE, BUT FIND THAT IT HAS MADE EVERY REASONABLE EFFORT TO OFFER ADEQUATE COMPENSATION, THAT CONTRACTING PARTY SHALL BE FREE TO PROCEED WITH SUCH MODIFICATION OR WITHDRAWAL.  IF SUCH ACTION IS TAKEN, ANY OTHER CONTRACTING PARTY REFERRED TO IN SUB-PARAGRAPH (A) ABOVE SHALL BE FREE TO MODIFY OR WITHDRAW SUBSTANTIALLY EQUIVALENT CONCESSIONS INITIALLY NEGOTIATED WITH THE CONTRACTING PARTY WHICH HAS TAKEN THE ACTION.

"SECTION B

"8.  THE CONTRACTING PARTIES RECOGNIZE THAT CONTRACTING PARTIES COMING WITHIN THE SCOPE OF PARAGRAPH 4(A) OF THIS ARTICLE TEND, WHEN THEY ARE IN RAPID PROCESS OF DEVELOPMENT, TO EXPERIENCE BALANCE OF PAYMENTS DIFFICULTIES ARISING MAINLY FROM EFFORTS TO EXPAND THEIR INTERNAL MARKETS AS WELL AS  FROM THE INSTABILITY IN THEIR TERMS OF TRADE.

"9.  IN ORDER TO SAFEGUARD ITS EXTERNAL FINANCIAL POSITION AND TO ENSURE A LEVEL OF RESERVES ADEQUATE FOR THE IMPLEMENTATION OF ITS PROGRAMME OF ECONOMIC DEVELOPMENT, A CONTRACTING PARTY COMING WITHIN THE SCOPE OF PARAGRAPH 4(A) OF THIS ARTICLE MAY, SUBJECT TO THE PROVISIONS OF PARAGRAPHS 10 TO 12, CONTROL THE GENERAL LEVEL OF ITS IMPORTS BY RESTRICTING THE QUANTITY OR VALUE OF MERCHANDISE PERMITTED TO BE IMPORTED; PROVIDED THAT THE IMPORT RESTRICTIONS INSTITUTED, MAINTAINED OR INTENSIFIED SHALL NOT EXCEED THOSE NECESARY:

"(A) TO FORESTALL THE THREAT OF, OR TO STOP, A SERIOUS DECLINE IN ITS MONETARY RESERVES, OR

"(B) IN THE CASE OF A CONTRACTING PARTY WITH INADEQUATE MONETARY RESERVES, TO ACHIEVE A REASONABLE RATE OF INCREASE IN ITS RESERVES.

"DUE REGARD SHALL BE PAID IN EITHER CASE TO ANY SPECIAL FACTORS WHICH MAY BE AFFECTING THE RESERVES OF THE CONTRACTING PARTY OR ITS NEED FOR RESERVES, INCLUDING, WHERE SPECIAL EXTERNAL CREDITS OR OTHER RESOURCES ARE AVAILABLE TO IT, THE NEED TO PROVIDE FOR THE APPROPRIATE USE OF SUCH CREDITS OR RESOURCES.

"10.  IN APPLYING THESE RESTRICTIONS, THE CONTRACTING PARTY MAY DETERMINE THEIR INCIDENCE ON IMPORTS OF DIFFERENT PRODUCTS OR CLASSES OF PRODUCTS IN SUCH A WAY AS TO GIVE PRIORITY TO THE IMPORTATION OF THOSE PRODUCTS WHICH ARE MORE ESSENTIAL IN THE LIGHT OF ITS POLICY OF ECONOMIC DEVELOPMENT; PROVIDED THAT THE RESTRICTIONS ARE SO APPLIED AS TO AVOID UNNECESSARY DAMAGE TO THE COMMERCIAL OR ECONOMIC INTERESTS OF ANY OTHER CONTRACTING PARTY AND NOT TO PREVENT UNREASONABLY THE IMPORTATION OF ANY DESCRIPTION OF GOODS IN MINIMUM COMMERCIAL QUANTITIES THE EXCLUSION OF WHICH WOULD IMPAIR REGULAR CHANNELS OF TRADE; AND PROVIDED FURTHER THAT THE RESTRICTIONS ARE NOT SO APPLIED AS TO PREVENT THE IMPORTATION OF COMMERCIAL SAMPLES OR TO PREVENT COMPLIANCE WITH PATENT, TRADEMARK, COPYRIGHT OR SIMILAR PROCEDURES.

"11.  IN CARRYING OUT ITS DOMESTIC POLICIES, THE CONTRACTING PARTY CONCERNED SHALL PAY DUE REGARD TO THE NEED FOR RESTORING EQUILIBRIUM IN ITS BALANCE OF PAYMENTS ON A SOUND AND LASTING BASIS AND TO THE DESIRABILITY OF ASSURING AN ECONOMIC EMPLOYMENT OF PRODUCTIVE RESOUREES.  IT SHALL PROGRESSIVELY RELAX ANY RESTRICTIONS APPLIED UNDER THIS SECTION AS CONDITIONS IMPROVE, MAINTAINING THEM ONLY TO THE EXTENT NECESSARY UNDER THE TERMS OF PARAGRAPH 9 OF THIS ARTCLE AND SHALL ELIMINATE THEM WHEN CONDITIONS NO LONGER JUSTIFY SUCH MAINTENANCE; PROVIDED THAT NO CONTRACTING PARTY SHALL BE REQUIRED TO WITHDRAW OR MODIFY RESTRICTIONS ON THE GROUND THAT A CHANGE IN ITS DEVELOPMENT POLICY WOULD RENDER UNNECESSARY THE RESTRICTIONS WHICH IT IS APPLYING UNDER THIS SECTION.

"12.  (A) ANY CONTRACTING PARTY APPLYING NEW RESTRICTIONS OR RAISING THE GENERAL LEVEL OF ITS EXISTING RESTRICTIONS BY A SUBSTANTIAL INTENSIFICATION OF THE MEASURES APPLIED UNDER THIS SECTION, SHALL IMMEDIATELY AFTER INSTITUTING OR INTENSIFYING SUCH RESTRICTIONS (OR, IN CIRCUMSTANCES IN WHICH PRIOR CONSULTATION IS PRACTICABLE, BEFORE DOING SO) CONSULT WITH THE CONTRACTING PARTIES AS TO THE NATURE OF ITS BALANCE OF PAYMENTS DIFFICULTIES, ALTERNATIVE CORRECTIVE MEASURES WHICH MAY BE AVAILABLE, AND THE POSSIBLE EFFECT OF THE RESTRICTIONS ON THE ECONOMIES OF OTHER CONTRACTING PARTIES.

"(B) ON A DATE TO BE DETERMINED BY THEM, THE CONTRACTING PARTIES SHALL REVIEW ALL RESTRICTIONS STILL APPLIED UNDER THIS SECTION ON THAT DATE.  BEGINNING TWO YEARS AFTER THAT DATE, CONTRACTING PARTIES APPLYING RESTRICTIONS UNDER THIS SECTION SHALL ENTER INTO CONSULTATIONS OF THE TYPE PROVIDED FOR IN SUB-PARAGRAPH (A) ABOVE WITH THE CONTRACTING PARTIES AT INTERVALS OF APPROXIMATELY, BUT NOT LESS THAN, TWO YEARS ACCORDING TO A PROGREMME TO BE DRAWN UP EACH YEAR BY THE CONTRACTING PARTIES; PROVIDED THAT NO CONSULTATION UNDER THIS SUB-PARAGRAPH SHALL TAKE PLACE WITHIN TWO YEARS AFTER THE CONCLUSION OF A CONSULTATION OF A GENERAL NATURE UNDER ANY OTHER PROVISION OF THIS PARAGRAPH.

"(C) (I) IF, IN THE COURSE OF CONSULTATIONS WITH A CONTRACTING PARTY UNDER SUB-PARAGRAPH (A) OR (B) OF THIS PARAGRAPH, THE CONTRACTING PARTIES FIND THAT THE RESTRICTIONS ARE NOT CONSISTENT WITH THE PROVISIONS OF THIS SECTION OR WITH THESE OF ARTICLE XIII (SUBJECT TO THE PROVISIONS OF ARTICLE XIV), THEY SHALL INDICATE THE NATURE OF THE INCONCISTENCY AND MAY ADVISE THAT THE RESTRICTIONS BE SUITABLY MODIFIED.

"(II) IF, HOWEVER, AS A RESULT OF THE CONSULTATIONS, THE CONTRACTING PARTIES DETERMINE THAT THE RESTRICTIONS ARE BEING APPLIED IN A MANNER INVOLVING AN INCONSISTENCY OF A SERIOUS NATURE WITH THE PROVISIONS OF THIS SECTION OR WITH THOSE OF ARTICLE XIII (SUBJECT TO THE PROVISIONS OF ARTICLE XIV) AND THAT DAMAGE TO THE TRADE OF ANY CONTRACTING PARTY IS CAUSED OR THREATENED THEREBY, THEY SHALL SO INFORM THE CONTRACTING PARTY APPLYING THE RESTRICTIONS AND SHALL MAKE APPROPRIATE RECOMMENDATIONS FOR SECURING CONFORMITY WITH SUCH PROVISIONS WITHIN A SPECIFIED PERIOD.  IF SUCH CONTRACTING PARTY DOES NOT COMPLY WITH THESE RECOMMENDATIONS WITHIN THE SPECIFIED PERIOD, THE CONTRACTING PARTIES MAY RELEASE ANY CONTRACTING PARTY THE TRADE OF WHICH IS ADVERSELY AFFECTED BY THE RESTRICTIONS FROM SUCH OBLIGATIONS UNDER THIS AGREEMENT TOWARDS THE CONTRACTING PARTY APPLYING THE RESTRICTIONS AS THEY DETERMINE TO BE APPROPRIATE IN THE CIRCUMSTANCES.

"(D) THE CONTRACTING PARTIES SHALL INVITE ANY CONTRACTING PARTY WHICH IS APPLYING RESTRICTIONS UNDER THIS SECTION TO ENTER INTO CONSULTATIONS WITH THEM AT THE REQUEST OF ANY CONTRACTING PARTY WHICH CAN ESTABLISH A PRIMA FACIE CASE THAT THE RESTRICTIONS ARE INCONSISTENT WITH THE PROVISIONS OF THIS SECTION OR WITH THOSE OF ARTICLE XIII (SUBJECT TO THE PROVISIONS OF ARTICLE XIV) AND THAT ITS TRADE IS ADVERSELY AFFECTED THEREBY.  HOWEVER, NO SUCH INVITATION SHALL BE ISSUED UNLESS THE CONTRACTING PARTIES HAVE ASCERTAINED THAT DIRECT DISCUSSIONS BETWEEN THE CONTRACTING PARTIES CONCERNED HAVE NOT BEEN SUCCESSFUL.  IF, AS A RESULT OF THE CONSULTATIONS WITH THE CONTRACTING PARTIES NO AGREEMENT IS REACHED AND THEY DETERMINE THAT THE RESTRICTIONS ARE BEING APPLIED INCONSISTENTLY WITH SUCH PROVISIONS, AND THAT DAMAGE TO THE TRADE OF THE CONTRACTING PARTY INITIATING THE PROCEDURE IS CAUSED OR THREATENED THEREBY, THEY SHALL RECOMMEND THE WITHDRAWAL OR MODIFICATION OF THE RESTRICTIONS.  IF THE RESTRICTIONS ARE NOT WITHDRAWN OR MODIFIED WITHIN SUCH TIME AS THE CONTRACTING PARTIES MAY PRESCRIBE, THEY MAY RELEASE THE CONTRACTING PARTY INITIATING THE PROCEDURE FROM SUCH OBLIGATIONS UNDER THIS AGREEMENT TOWARDS THE CONTRACTING PARTY APPLYING THE RESTRICTIONS AS THEY DETERMINE TO BE APPROPRIATE IN THE CIRCUMSTANCES.

"(E) IF A CONTRACTING PARTY AGAINST WHICH ACTION HAS BEEN TAKEN IN ACCORDANCE WITH THE LAST SENTENCE OF SUB-PARAGRAPH (C)(II) OR (D) OF THIS PARAGRAPH, FINDS THAT THE RELEASE OF OBLIGATIONS AUTHORIZED BY THE CONTRACTING PARTIES ADVERSELY AFFECTS THE OPERATION OF ITS PROGRAMME AND POLICY OF ECONOMIC DEVELOPMENT, IT SHALL BE FREE, NOT LATER THAN SIXTY DAYS AFTER SUCH ACTION IS TAKEN, TO GIVE WRITTEN NOTICE TO THE EXCEUTIVE SECRETARY TO THE CONTRACTING PARTIES OF ITS INTENTION TO WITHDRAW FROM THIS AGREEMENT AND SUCH WITHDRAWAL SHALL TAKE EFFECT ON THE SIXTIETH DAY FOLLOWING THE DAY ON WHICH THE NOTICE IS RECEIVED BY HIM.

"(F) IN PROCEEDING UNDER THIS PARAGRAPH, THE CONTRACTING PARTIES SHALL HAVE DUE REGARD TO THE FACTORS REFERRED TO IN PARAGRAPH 2 OF THIS ARTICLE.  DETERMINATIONS UNDER THIS PARAGRAPH SHALL BE RENDERED EXPEDITIOUSLY AND, IF POSSIBLE, WITHIN SIXTY DAYS OF THE INITIATION OF THE CONSULTATIONS.

"SECTION C

"13.  IF A CONTRACTING PARTY COMING WITHIN THE SCOPE OF PARAGRAPH 4(A) OF THIS ARTICLE FINDS THAT GOVERNMENTAL ASSISTANCE IS REQUIRED TO PROMOTE THE ESTABLISHMENT OF A PARTICULAR INDUSTRY WITH A VIEW TO RAISING THE GENERAL STANDARD OF LIVING OF ITS PEOPLE, BUT THAT NO MEASURE CONSISTENT WITH THE OTHER PROVISIONS OF THIS AGREEMENT IS PRACTICABLE TO ACHIEVE THAT OBJECTIVE, IT MAY HAVE RECOURSE TO THE PROVISIONS AND PROCEDURES SET OUT IN THIS SECTION.

"14.  THE CONTRACTING PARTY CONCERNED SHALL NOTIFY THE CONTRACTING PARTIES OF THE SPECIAL DIFFICULTIES WHICH IT MEETS IN THE ACHIEVEMENT OF THE OBJECTIVE OUTLINED IN PARAGRAPH 13 OF THIS ARTICLE AND SHALL INDICATE THE SPECIFIC MEASURE AFFECTING IMPORTS WHICH IT PROPOSES TO INTRODUCE IN ORDER TO REMEDY THESE DIFFICULTIES.  IT SHALL NOT INTRODUCE THAT MEASURE BEFORE THE EXPIRATION OF THE TIMELIMIT LAID DOWN IN PARAGRAPH 15 OR 17, AS THE CASE MAY BE, OR IF THE MEASURE AFFECTS IMPORTS OF A PRODUCT WHICH IS THE SUBJECT OF A CONCESSION INCLUDED IN THE APPROPRIATE SCHEDULE ANNEXED TO THIS AGREEMENT, UNLESS IT HAS SECURED THE CONCURRENCE OF THE CONTRACTING PARTIES IN ACCORDANCE WITH THE PROVISIONS OF PARAGRAPH 18; PROVIDED THAT, IF THE INDUSTRY RECEIVING ASSISTANCE HAS ALREADY STARTED PRODUCTION, THE CONTRACTING PARTY MAY, AFTER INFORMING THE CONTRACTING PARTIES, TAKE SUCH MEASURES AS MAY BE NECESSARY TO PREVENT, DURING THAT PERIOD, IMPORTS OF THE PRODUCT OR PRODUCTS CONCERNED FROM INCREASING SUBSTANTIALLY ABOVE A NORMAL LEVEL.

"15.  IF, WITHIN THIRTY DAYS OF THE NOTIFICATION OF THE MEASURE, THE CONTRACTING PARTIES DO NOT REQUEST THE CONTRACTING PARTY CONCERNED TO CONSULT WITH THEM, THAT CONTRACTING PARTY SHALL BE FREE TO DEVIATE FROM THE RELEVANT PROVISIONS OF THE OTHER ARTICLES OF THIS AGREEMENT TO THE EXTENT NECESSARY TO APPLY THE PROPOSED MEASURE.

"16.  IF IT IS REQUESTED BY THE CONTRACTING PARTIES TO DO SO, THE CONTRACTING PARTY CONCERNED SHALL CONSULT WITH THEM AS TO THE PURPOSE OF THE PROPOSED MEASURE, AS TO ALTERNATIVE MEASURES WHICH MAY BE AVAILABLE UNDER THIS AGREEMENT, AND AS TO THE POSSIBLE EFFECT OF THE MEASURE PROPOSED ON THE COMMERCIAL AND ECONOMIC INTERESTS OF OTHER CONTRACTING PARTIES.  IF, AS A RESULT OF SUCH CONSULTATION, THE CONTRACTING PARTIES AGREE THAT THERE IS NO MEASURE CONSISTENT WITH THE OTHER PROVISIONS OF THIS AGREEMENT WHICH IS PRACTICABLE IN ORDER TO ACHIEVE THE OBJECTIVE OUTLINED IN PARAGRAPH 13 OF THIS ARTICLE, AND CONCUR IN THE PROPOSED MEASURE, THE CONTRACTING PARTY CONCERNED SHALL BE RELEASED FROM ITS OBLIGATIONS UNDER THE RELEVANT PROVISIONS OF THE OTHER ARTICLES OF THIS AGREEMENT TO THE EXTENT NECESSARY TO APPLY THAT MEASURE.

"17.  IF, WITHIN NINETY DAYS AFTER THE DATE OF THE NOTIFICATION OF THE PROPOSED MEASURE UNDER PARAGRAPH 14 OF THIS ARTICLE, THE CONTRACTING PARTIES HAVE NOT CONCURRED IN SUCH MEASURE, THE CONTRACTING PARTY CONCERNED MAY INTRODUCE THE MEASURE PROPOSED AFTER INFORMING THE CONTRACTING PARTIES.

"18.  IF THE PROPOSED MEASURE AFFECTS A PRODUCT WHICH IS THE SUBJECT OF A CONCESSION INCLUDED IN THE APPROPRIATE SCHEDULE ANNEXED TO THIS AGREEMENT, THE CONTRACTING PARTY CONCERNED SHALL ENTER INTO CONSULTATIONS WITH ANY OTHER CONTRACTING PARTY WITH WHICH THE CONCESSION WAS INITIALLY NEGOTIATED, AND WITH ANY OTHER CONTRACTING PARTY DETERMINED BY THE CONTRACTING PARTIES TO HAVE A SUBSTANTIAL INTEREST THEREIN.  THE CONTRACTING PARTIES SHALL CONCUR IN THE MEASURE IF THEY AGREE THAT THERE IS NO MEASURE CONSISTENT WITH THE OTHER PROVISIONS OF THIS AGREEMENT WHICH IS PRACTICABLE IN ORDER TO ACHIEVE THE OBJECTIVE SET FORTH IN PARAGRAPH 13 OF THIS ARTICLE, AND IF THEY ARE SATISFIED:

"(A) THAT AGREEMENT HAS BEEN REACHED WITH SUCH OTHER CONTRACTING PARTIES AS A RESULT OF THE CONSULTATIONS REFERRED TO ABOVE, OR

"(B) IF NO SUCH AGREEMENT HAS BEEN REACHED WITHIN SIXTY DAYS AFTER THE NOTIFICATION PROVIDED FOR IN PARAGRAPH 14 HAS BEEN RECEIVED BY THE CONTRACTING PARTIES, THAT THE CONTRACTING PARTY HAVING RECOURSE TO THIS SECTION HAS MADE ALL REASONABLE EFFORTS TO REACH AN AGREEMENT AND THAT THE INTERESTS OF OTHER CONTRACTING PARTIES ARE ADEQUATELY SAFEGUARDED.

"THE CONTRACTING PARTY HAVING RECOURSE TO THIS SECTION SHALL THEREUPON BE RELEASED FROM ITS OBLIGATIONS UNDER THE RELEVANT PROVISIONS OF THE OTHER ARTICLES OF THIS AGREEMENT TO THE EXTENT NECESSARY TO PERMIT IT TO APPLY THE MEASURE.

"19.  IF A PROPOSED MEASURE OF THE TYPE DESCRIBED IN PARAGRAPH 13 OF THIS ARTICLE CONCERNS AN INDUSTRY THE ESTABLISHMENT OF WHICH HAS IN THE INITIAL PERIOD BEEN FACILITATED BY INCIDENTAL PROTECTION AFFORDED BY RESTRICTIONS IMPOSED BY THE CONTRACTING PARTY CONCERNED FOR BALANCE OF PAYMENTS PURPOSES UNDER THE RELEVANT PROVISIONS OF THIS AGREEMENT, THAT CONTRACTING PARTY MAY RESORT TO THE PROVISIONS AND PROCEDURES OF THIS SECTION; PROVIDED THAT IT SHALL NOT APPLY THE PROPOSED MEASURE WITHOUT THE CONCURRENCE OF THE CONTRACTING PARTIES.

"20.  NOTHING IN THE PRECEDING PARAGRAPHS OF THIS SECTION SHALL AUTHORIZE ANY DEVIATION FROM THE PROVISIONS OF ARTICLES I, II AND XIII OF THIS AGREEMENT.  THE PROVISOS TO PARAGRAPH 10 OF THIS ARTICLE SHALL ALSO BE APPLICABLE TO ANY RESTRICTION UNDER THIS SECTION.

"21.  AT ANY TIME WHILE A MEASURE IS BEING APPLIED UNDER PARAGRAPH 17 OF THIS ARTICLE ANY CONTRACTING PARTY SUBSTANTIALLY AFFECTED BY IT MAY SUSPEND THE APPLICATION TO THE TRADE OF THE CONTRACTING PARTY HAVING RECOURSE TO THIS SECTION OF SUCH SUBSTANTIALLY EQUIVALENT CONCESSIONS OR OTHER OBLIGATIONS UNDER THIS AGREEMENT THE SUSPENSION OF WHICH THE CONTRACTING PARTIES DO NOT DISAPPROVE; PROVIDED THAT SIXTY DAYS' NOTICE OF SUCH SUSPENSION IS GIVEN TO THE CONTRACTING PARTIES NOT LATER THAN SIX MONTHS AFTER THE MEASURE HAS BEEN INTRODUCED OR CHANGED SUBSTANTIALLY TO THE DETRIMENT OF THE CONTRACTING PARTY AFFECTED.  ANY SUCH CONTRACTING PARTY SHALL AFFORD ADEQUATE OPPORTUNITY FOR CONSULTATION IN ACCORDANCE WITH THE PROVISIONS OF ARTICLE XXII OF THIS AGREEMENT.

"SECTION D

"22.  A CONTRACTING PARTY COMING WITHIN THE SCOPE OF SUB-PARAGRAPH 4(B) OF THIS ARTICLE DESIRING, IN THE INTEREST OF THE DEVELOPMENT OF ITS ECONOMY, TO INTRODUCE A MEASURE OF THE TYPE DESCRIBED IN PARAGRAPH 13 OF THIS ARTICLE IN RESPECT OF THE ESTABLISHMENT OF A PARTICULAR INDUSTRY MAY APPLY TO THE CONTRACTING PARTIES FOR APPROVAL OF SUCH MEASURE.  THE CONTRACTING PARTIES SHALL PROMPTLY CONSULT WITH SUCH CONTRACTING PARTY AND SHALL, IN MAKING THEIR DECISION, BE GUIDED BY THE CONSIDERATIONS SET OUT IN PARAGRAPH 16.  IF THE CONTRACTING PARTIES CONCUR IN THE PROPOSED MEASURE THE CONTRACTING PARTY CONCERNED SHALL BE RELEASED FROM ITS OBLIGATIONS UNDER THE RELEVANT PROVISIONS OF THE OTHER ARTICLES OF THIS AGREEMENT TO THE EXTENT NECESSARY TO PERMIT IT TO APPLY THE MEASURE.  IF THE PROPOSED MEASURE AFFECTS A PRODUCT WHICH IS THE SUBJECT OF A CONCESSION INCLUDED IN THE APPROPRIATE SCHEDULE ANNEXED TO THIS AGREEMENT, THE PROVISIONS OF PARAGRAPH 18 SHALL APPLY.

"23.  ANY MEASURE APPLIED UNDER THIS SECTION SHALL COMPLY WITH THE PROVISIONS OF PARAGRAPH 20 OF THIS ARTICLE."

O

IN PARAGRAPH 3 OF ARTICLE XIX THE WORDS "OBLIGATIONS OR CONCESSIONS" SHALL BE DELETED AND THE WORDS "CONCESSIONS OR OTHER OBLIGATIONS" SHALL BE INSERTED IN PLACE THEREOF WHEREVER THEY OCOUR.

P

ARTICLE XX SHALL BE AMENDED AS FOLLOWS:

(I) THE NUMERAL "I" PRECEDING THE FIRST SUB-PARAGRAPH (A) SHALL BE DELETED.

(II) SUB-PARAGRAPH (H) SHALL READ:

"(H) UNDERTAKEN IN PURSUANCE OF OBLIGATIONS UNDER ANY INTERGOVERNMENTAL COMMODITY AGREEMENT WHICH CONFORMS TO CRITERIA SUBMITTED TO THE CONTRACTING PARTIES AND NOT DISAPPROVED BY THEM OR WHICH IS ITSELF SO SUBMITTED AND NOT SO DISAPPROVED;".

(III) THE FOLLOWING NEW SUB-PARAGRAPH SHALL BE INSERTED IMMEDIATELY AFTER SUB-PARAGRAPH (I):

"(J) ESSENTIAL TO THE ACQUISITION OR DISTRIBUTION OF PRODUCTS IN GENERAL OR LOCAL SHORT SUPPLY; PROVIDED THAT ANY SUCH MEASURES SHALL BE CONSISTENT WITH THE PRINCIPLE THAT ALL CONTRACTING PARTIES ARE ENTITLED TO AN EQUITABLE SHARE OF THE INTERNATIONAL SUPPLY OF SUCH PRODUCTS, AND THAT ANY SUCH MEASURES, WHICH ARE INCENSISTENT WITH THE OTHER PROVISIONS OF THIS AGREEMENT SHALL BE DISCONTINUED AS SOON AS THE CONDITIONS GIVING RISE TO THEM HAVE COASED TO EXIST.  THE CONTRACTING PARTIES SHALL REVIEW THE NEED FOR THIS SUB-PARAGRAPH NOT LATER THAN 30 JUNE 1960."

(IV) PART II SHALL BE DELETED.

Q

ARTICLE XXII SHALL READ:

"ARTICLE XXII "CONSULTATION

"1.  EACH CONTRACTING PARTY SHALL ACCORD SYMPATHETIC CONSIDERATION TO, AND SHALL AFFORD ADEQUATE OPPORTUNITY FOR CONSULTATION REGARDING, SUCH REPRESENTATIONS AS MAY BE MADE BY ANOTHER CONTRACTING PARTY WITH RESPECT TO ANY MATTER AFFECTING THE OPERATION OF THIS AGREEMENT.

"2.  THE CONTRACTING PARTIES MAY, AT THE REQUEST OF A CONTRACTING PARTY, CONSULT WITH ANY CONTRACTING PARTY OR PARTIES IN RESPECT OF ANY MATTER FOR WHICH IT HAS NOT BEEN POSSIBLE TO FIND A SATISFACTORY SOLUTION THROUGH CONSULTATION UNDER PARAGRAPH 1."

R

THE FOURTH AND FIFTH SENTENCES OF PARAGRAPH 2 OF ARTICLE XXIII SHALL, UNTIL AND SUBJECT TO THE AMENDMENT OF THAT PARAGRAPH PURSUANT TO THE PROTOCOL OF ORGANIZATIONAL AMENDMENTS TO THE GENERAL AGREEMENT, READ AS FOLLOWS:

"IF THE CONTRACTING PARTIES CONSIDER THAT THE CIRCUMSTANCES ARE SERIOUS ENOUGH TO JUSTIFY SUCH ACTION, THEY MAY AUTHORIZE A CONTRACTING PARTY OR PARTIES TO SUSPEND THE APPLICATION TO ANY OTHER CONTRACTING PARTY OR PARTIES OF SUCH CONCESSIONS OR OTHER OBLIGATIONS UNDER THIS AGREEMENT AS THEY DETERMINE TO BE APPROPRIATE IN THE CIRCUMSTANCES.  IF THE APPLICATION TO ANY CONTRACTING PARTY OF ANY CONCESSION OR OTHER OBLIGATION IS IN FACT SUSPENDED, THAT CONTRACTING PARTY SHALL THEN BE FREE, NOT LATER THAN SIXTY DAYS AFTER SUCH ACTION IS TAKEN TO GIVE WRITTEN NOTICE TO THE EXECUTIVE SECRETARY TO THE CONTRACTING PARTIES OF ITS INTENTION TO WITHDRAW FROM THIS AGREEMENT AND SUCH WITHDRAWAL SHALL TAKE EFFECT UPON THE SIXTIETH DAY FOLLOWING THE DAY ON WHICH SUCH NOTICE IS RECEIVED BY HIM."

S

ARTICLE XXIV SHALL BE AMENDED AS FOLLOWS:

(I) PARAGRAPH 4 SHALL READ:

"4.  THE CONTRACTING PARTIES RECOGNIZE THE DESIRABILITY OF INCREASING FREEDOM OF TRADE BY THE DEVELOPMENT, THROUGH VOLUNTARY AGREEMENTS, OF CLOSER INTEGRATION BETWEEN THE ECONOMIES OF THE COUNTRIES PARTIES TO SUCH AGREEMENTS.  THEY ALSO RECOGNIZE THAT THE PURPOSE OF A CUSTOMS UNION OR OF A FREE-TRADE AREA SHOULD BE TO FACILITATE TRADE BETWEEN THE CONSTITUENT TERRITORIES AND NOT TO RAISE BARRIERS TO THE TRADE OF OTHER CONTRACTING PARTIES WITH SUCH TERRITORIES."

(II) IN THE FIRST SENTENCE OF PARAGRAPH 7(B) THE WORDS "PROVIDED FOR" SHALL BE DELETED AND THE WORD "INCLUDED" SHALL BE INSERTED IN PLACE THEREOF.

T

IN ARTICLE XXV SUB-PARAGRAPHS (B), (C) AND (D) OF PARAGRAPH 5, AND THE LETTER "(A)" IN SUB-PARAGRAPH (A) THEREOF, SHALL BE DELETED.

U

ARTICLE XXVI SHALL BE AMENDED AS FOLLOWS:

(I) ARTICLE XXVI SHALL READ:

"ARTICLE XXVI "ACCEPTANCE, ENTRY INTO FORCE AND REGISTRATION

"1.  THE DATE OF THIS AGREEMENT SHALL BE 30 OCTOBER 1947.

"2.  THIS AGREEMENT SHALL BE OPEN FOR ACCEPTANCE BY ANY CONTRACTING PARTY WHICH, ON 1 MARCH 1955, WAS A CONTRACTING PARTY OR WAS NEGOTIATING WITH A VIEW TO ACCESSION TO THIS AGREEMENT.

"3.  THIS AGREEMENT, DONE IN A SINGLE ENGLISH ORIGINAL AND IN A SINGLE FRENCH ORIGINAL, BOTH TEXTS AUTHENTIC, SHALL BE DEPOSITED WITH THE SECRETARY-GENERAL OF THE UNITED NATIONS, WHO SHALL FURNISH CERTIFIED COPIES THEREOF TO ALL INTERESTED GOVERNMENTS.

"4.  EACH GOVERNMENT ACCEPTING THIS AGREEMENT SHALL DEPOSIT AN INSTRUMENT OF ACCEPTANCE WITH THE EXECUTIVE SECPETARY TO THE CONTRACTING PARTIES, WHO WILL INFORM ALL INTERESTED GOVERNMENTS OF THE DATE OF DEPOSIT OF EACH INSTRUMENT OF ACCEPTANCE AND OF THE DAY ON WHICH THIS AGREEMENT ENTERS INTO FORCE UNDER PARAGRAPH 6 OF THIS ARTICLE.

"5.  (A) EACH GOVERNMENT ACCEPTING THIS AGREEMENT DOES SO IN RESPECT OF ITS METROPOLITAN TERRITORY AND OF THE OTHER TERRITORIES FOR WHICH IT HAS INTERNATIONAL RESPONSIBILITY, EXCEPT SUCH SEPARATE CUSTOMS TERRITORIES AS IT SHALL NOTIFY TO THE EXECUTIVE SECRETARY TO THE CONTRACTING PARTIES AT THE TIME OF ITS OWN ACCEPTANCE.

"(B) ANY GOVERNMENT, WHICH HAS SO NOTIFIED THE EXECUTIVE SECRETARY UNDER THE EXCEPTIONS IN SUB-PARAGRAPH (A) OF THIS PARAGRAPH, MAY AT ANY TIME GIVE NOTICE TO THE EXECUTIVE SECRETARY THAT ITS ACCEPTANCE SHALL BE EFFECTIVE IN RESPECT OF ANY SEPARATE CUSTOMS TERRITORY OR TERRITORIES SO EXCEPTED AND SUCH NOTICE SHALL TAKE EFFECT ON THE THIRTIETH DAY FOLLOWING THE DAY ON WHICH IT IS RECEIVED BY THE EXECUTIVE SECRETARY.

"(C) IF ANY OF THE CUSTOMS TERRITORIES, IN RESPECT OF WHICH A CONTRACTING PARTY HAS ACCEPTED THIS AGREEMENT, POSSESSES OR ACQUIRES FULL AUTONOMY IN THE CONDUCT OF ITS EXTERNAL COMMERCIAL RELATIONS AND OF THE OTHER MATTERS PROVIDED FOR IN THIS AGREEMENT, SUCH TERRITORY SHALL, UPON SPONSORSHIP THROUGH A DECLARATION BY THE RESPONSIBLE CONTRACTING PARTY ESTABLISHING THE ABOVE-MENTIONED FACT, BE DEAMED TO BE A CONTRACTING PARTY.

"6.  THIS AGREEMENT SHALL ENTER INTO FORCE, AS AMONG THE GOVERNMENTS WHICH HAVE ACCEPTED IT, ON THE THIRTIETH DAY FOLLOWING THE DAY ON WHICH INSTRUMENTS OF ACCEPTANCE HAVE BEEN DEPOSITED WITH THE EXECUTIVE SECRETARY TO THE CONTRACTING PARTIES ON BEHALF OF GOVERNMENTS NAMED IN ANNEX H, THE TERRITORIES OF WHICH ACCOUNT FOR 85 PER CENTUM OF THE TOTAL EXTERNAL TRADE OF THE TERRITORIES OF SUCH GOVERNMENTS, COMPUTED IN ACCORDANCE WITH THE APPLICABLE COLUMN OF PERCENTAGES SET FORTH THEREIN.  THE INSTRUMENT OF ACCEPTANCE OF EACH OTHER GOVERNMENT SHALL TAKE EFFECT ON THE THIRTIETH DAY FOLLOWING THE DAY ON WHICH SUCH INSTRUMENT HAS BEEN DEPOSITED.

"7.  THE UNITED NATIONS IS AUTHORIZED TO EFFECT REGISTRATION OF THIS AGREEMENT AS SOON AS IT ENTERS INTO FORCE."

(II) SUBJECT TO THE PROVISIONS OF PARAGRAPH 8(B) OF THIS PROTOCOL, THE REFERENCE TO "ANNEX H" IN PARAGRAPH 6 (AS AMENDED PURSUANT TO SUB-SECTION (I) OF THIS SECTION) SHALL READ "ANNEX G".

V

THE SECOND SENTENCE OF ARTICLE XXVII SHALL READ:

"A CONTRACTING PARTY TAKING SUCH ACTION SHALL NOTIFY THE CONTRACTING PARTIES AND, UPON REQUEST, CONSULT WITH CONTRACTING PARTIES WHICH HAVE A SUBSTANTIAL INTEREST IN THE PRODUCT CONCERNED."

W

ARTICLE XXVIII SHALL READ:

"ARTICLE XXVIII "MODIFICATION OF SCHEDULES

"1.  ON THE FIRST DAY OF EACH THREE-YEAR PERIOD, THE FIRST PERIOD BEGINNING ON 1 JANUARY 1958 (OR ON THE FIRST DAY OF ANY OTHER PERIOD THAT MAY BE SPECIFIED BY THE CONTRACTING PARTIES BY TWO-THIRDS OF THE VOTES CAST) A CONTRACTING PARTY (HEREAFTER IN THIS ARTICLE REFERRED TO AS THE "APPLICANT CONTRACTING PARTY") MAY, BY NEGOTIATION AND AGREEMENT WITH ANY CONTRACTING PARTY WITH WHICH SUCH CONCESSION WAS INITIALLY NEGOTIATED AND WITH ANY OTHER CONTRACTING PARTY DETERMINED BY THE CONTRACTING PARTIES TO HAVE A PRINCIPAL SUPPLYING INTEREST (WHICH TWO PRECEDING CATEGORIES OF CONTRACTING PARTIES, TOGETHER WITH THE APPLICANT CONTRACTING PARTY, ARE IN THIS ARTICLE HEREINAFTER REFERRED TO AS THE "CONTRACTING PARTIES PRIMARILY CONCERNED"), AND SUBJECT TO CONSULTATION WITH ANY OTHER CONTRACTING PARTY DETERMINED BY THE CONTRACTING PARTIES TO HAVE A SUBSTANTIAL INTEREST IN SUCH CONCESSION, MODIFY OR WITHDRAW A CONCESSION INCLUDED IN THE APPROPRIATE SCHEDULE ANNEXED TO THIS AGREEMENT.

"2.  IN SUCH NEGOTIATIONS AND AGREEMENT, WHICH MAY INCLUDE PROVISION FOR COMPENSATORY ADJUSTMENT WITH RESPECT TO OTHER PRODUCTS, THE CONTRACTING PARTIES CONCERNED SHALL ENDEAVOUR TO MAINTAIN A GENERAL LAVEL OF RECIPROCAL AND MUTUALLY ADVANTAGEOUS CONCESSIONS NOT LESS FAVOURABLE TO TRADE THAN THAT PROVIDED FOR IN THIS AGREEMENT PRIOR TO SUCH NEGOTIATIONS.

"3.  (A) IF AGREEMENT BETWEEN THE CONTRACTING PARTIES PRIMARILY CONCERNED CANNOT BE REACHED BEFORE 1 JANUARY 1958 OR BEFORE THE EXPIRATION OF A PERIOD ENVISAGED IN PARAGRAPH 1 OF THIS ARTICLE, THE CONTRACTING PARTY WHICH PROPOSES TO MODIFY OR WITHDRAW THE CONCESSION SHALL, NEVERTHELESS, BE FREE TO DO SO AND IF SUCH ACTION IS TAKEN ANY CONTRACTING PARTY WITH WHICH SUCH CONCESSION WAS INITIALLY NEGOTIATED, ANY CONTRACTING PARTY DETERMINED UNDER PARAGRAPH 1 TO HAVE A PRINCIPAL SUPPLYING INTEREST AND ANY CONTRACTING PARTY DETERMINED UNDER PARAGRAPH 1 TO HAVE A SUBSTANTIAL INTEREST SHALL THEN BE FREE NOT LATER THAN SIX MONTHS AFTER SUCH ACTION IS TAKEN, TO WITHDRAW, UPON THE EXPIRATION OF THIRTY DAYS FROM THE DAY ON WHICH WRITTEN NOTICE OF SUCH WITHDRAWAL IS RECEIVED BY THE CONTRACTING PARTIES, SUBSTANTIALLY EQUIVALENT CONCESSIONS INITIALLY NEGOTIATED WITH THE APPLICANT CONTRACTING PARTY.

"(B) IF AGREEMENT BETWEEN THE CONTRACTING PARTIES PRIMARILY CONCERNED IS REACHED BUT ANY OTHER CONTRACTING PARTY DETERMINED UNDER PARAGRAPH 1 OF THIS ARTICLE TO HAVE A SUBSTANTIAL INTEREST IS NOT SATISFIED, SUCH OTHER CONTRACTING PARTY SHALL BE FREE, NOT LATER THAN SIX MONTHS AFTER ACTION UNDER SUCH AGREEMENT IS TAKEN, TO WITHDRAW, UPON THE EXPIRATION OF THIRTY DAYS FROM THE DAY ON WHICH WRITTEN NOTICE OF SUCH WITHDRAWAL IS RECEIVED BY THE CONTRACTING PARTIES, SUBSTANTIALLY EQUIVALENT CONCESSIONS INITIALLY NEGOTIATED WITH THE APPLICANT CONTRACTING PARTY.

"4.  THE CONTRACTING PARTIES MAY, AT ANY TIME, IN SPECIAL CIRCUMSTANCES, AUTHORIZE A CONTRACTING PARTY TO ENTER INTO NEGOTIATIONS FOR MODIFICATION OR WITHDRAWAL OF A CONCESSION INCLUDED IN THE APPROPRIATE SCHEDULE ANNEXED TO THIS AGREEMENT SUBJECT TO THE FOLLOWING PROCEDURES AND CONDITIONS:

"(A) SUCH NEGOTIATIONS AND ANY RELATED CONSULTATIONS SHALL BE CONDUCTED IN ACCORDANCE WITH THE PROVISIONS OF PARAGRAPHS 1 AND 2 OF THIS ARTICLE.

"(B) IF AGREEMENT BETWEEN THE CONTRACTING PARTIES PRIMARILY CONCERNED IS REACHED IN THE NEGOTIATIONS, THE PROVISIONS OF PARAGRAPH 3(B) OF THIS ARTICLE SHALL APPLY.

"(C) IF AGREEMENT BETWEEN THE CONTRACTING PARTIES PRIMARILY CONCERNED IS NOT REACHED WITHIN A PERIOD OF SIXTY DAYS AFTER NEGOTIATIONS HAVE BEEN AUTHORIZED, OR WITHIN SUCH LONGER PERIOD AS THE CONTRACTING PARTIES MAY HAVE PRESCRIBED, THE APPLICANT CONTRACTING PARTY MAY REFER THE MATTER TO THE CONTRACTING PARTIES.

"(D) UPON SUCH REFERENCE, THE CONTRACTING PARTIES SHALL PROMPTLY EXAMINE THE MATTER AND SUBMIT THEIR VIEWS TO THE CONTRACTING PARTIES PRIMARILY CONCERNED WITH THE AIM OF ACHIEVING A SETTLEMENT.  IF A SETTLEMENT IS REACHED, THE PROVISIONS OF PARAGRAPH 3(B) SHALL APPLY AS IF AGREEMENT BETWEEN THE CONTRACTING PARTIES PRIMARILY CONCERNED HAD BEEN REACHED.  IF NO SETTLEMENT IS REACHED BETWEEN THE CONTRACTING PARTIES PRIMARILY CONCERNED, THE APPLICANT CONTRACTING PARTY SHALL BE FREE TO MODITY OR WITHDRAW THE CONCESSION, UNLESS THE CONTRACTING PARTIES DETERMINE THAT THE APPLICANT CONTRACTING PARTY HAS UNREASONABLY FAILED TO OFFER ADEQUATE COMPENSATION.  IF SUCH ACTION IS TAKEN, ANY CONTRACTING PARTY WITH WHICH THE CONCESSION WAS INITIALLY NEGOTIATED, ANY CONTRACTING PARTY DETERMINED UNDER PARAGRAPH 4(A) TO HAVE A PRINCIPAL SUPPLYING INTEREST AND ANY CONTRACTING PARTY DETERMINED UNDER PARAGRAPH 4(A) TO HAVE A SUBSTANTIAL INTEREST, SHALL BE FREE, NOT LATER THANSIX MONTHS AFTER SUCH ACTION IS TAKEN, TO MODIFY OR WITHDRAW, UPON THE EXPIRATION OF THIRTY DAYS FROM THE DAY ON WHICH WRITTEN NOTICE OF SUCH WITHDRAWAL IS RECEIVED BY THE CONTRACTING PARTIES, SUBSTANTIALLY EQUIVALENT CONCESSIONS INITIALLY NEGOTIATED WITH THE APPLICANT CONTRACTING PARTY.

"5.  BEFORE 1 JANUARY 1958 AND BEFORE THE END OF ANY PERIOD ENVISAGED IN PARAGRAPH 1 A CONTRACTING PARTY MAY ELECT BY NOTIFYING THE CONTRACTING PARTIES TO RESERVE THE RIGHT, FOR THE DURATION OF THE NEXT PERIOD, TO MODIFY THE APPROPRIATE SCHEDULE IN ACCORDANCE WITH THE PROCEDURES OF PARAGRAPHS 1 TO 3.  IF A CONTRACTING PARTY SO ELECTS, OTHER CONTRACTING PARTIES SHALL HAVE THE RIGHT, DURING THE SAME PERIOD, TO MODIFY OR WITHDRAW, IN ACCORDANCE WITH THE SAME PROCEDURES, CONCESSIONS INITIALLY NEGOTIATED WITH THAT CONTRACTING PARTY."

X

(I) THE FOLLOWING NEW ARTICLE SHALL BE INSERTED AFTER ARTICLE XXVIII:

"ARTICLE XXVIII BIS "TARIFF NEGOTIATIONS

"1.  THE CONTRACTING PARTIES RECOGNIZE THAT CUSTOMS DUTIES OFTEN CONSTITUTE SERIOUS OBSTACLES TO TRADE; THUS NEGOTIATIONS ON A RECIPROCAL AND MUTUALLY ADVANTAGEOUS BASIS, DIRECTED TO THE SUBSTANTIAL REDUCTION OF THE GENERAL LEVEL OF TARIFFS AND OTHER CHARGES ON IMPORTS AND EXPORTS AND IN PARTICULAR TO THE REDUCTION OF SUCH HIGH TARIFFS AS DISCOURAGE THE IMPORTATION EVEN OF MINIMUM QUANTITIES, AND CONDUCTED WITH DUE REGARD TO THE OBJECTIVES OF THIS AGREEMENT AND THE VARYING NEEDS OF INDIVIDUAL CONTRACTING PARTIES, ARE OF GREAT IMPORTANCE TO THE EXPANSION OF INTERNATIONAL TRADE.  THE CONTRACTING PARTIES MAY THEREFORE SPONSOR SUCH NEGOTIATIONS FROM TIME TO TIME.

"2.  (A) NEGOTIATIONS UNDER THIS ARTICLE MAY BE CARRIED OUT ON A SELECTIVE PRODUCT-BY-PRODUCT BASIS OR BY THE APPLICATION OF SUCH MULTILATERAL PROCEDURES AS MAY BE ACCEPTED BY THE CONTRACTING PARTIES CONCERNED.  SUCH NEGOTIATIONS MAY BE DIRECTED TOWARDS THE REDUCTION OF DUTIES, THE BINDING OF DUTIES AT THEN EXISTING LEVELS OR UNDERTAKINGS THAT INDIVIDUAL DUTIES OR THE AVERAGE DUTIES ON SPECIFIED CATEGORIES OF PRODUCTS SHALL NOT EXCEED SPECIFIED LEVELS.  THE BINDING AGEINST INCREASE OF LOW DUTIES OR OF DUTY-FREE TREETMENT SHALL, IN PRINCIPLE, BE RECOGNIZED AS A CONCESSION EQUIVALENT IN VALUE TO THE REDUCTION OF HIGH DUTIES.

(B) THE CONTRACTING PARTIES RECOGNIZE THAT IN GENERAL THE SUCCESS OF MULTILATERAL NEGOTIATIONS WOULD DEPEND ON THE PARTICIPATION OF ALL CONTRACTING PARTIES WHICH CONDUCT A SUBSTANTIAL PROPORTION OF THEIR EXTERNAL TRADE WITH ONE ANOTHER.

"3.  NEGOTIATIONS SHALL BE CONDUCTED ON A BASIS WHICH AFFORDS ADEQUATE OPPORTUNITY TO TAKE INTO ACCOUNT:

"(A) THE NEEDS OF INDIVIDUAL CONTRACTING PARTIES AND INDIVIDUAL INDUSTRIES;

"(B) THE NEEDS OF LESS-DEVELOPED COUNTRIES FOR A MORE FLEXIBLE USE OF TARIFF PROTECTION TO ASSIST THEIR ECONOMIC DEVELOPMENT AND THE SPECIAL NEEDS OF THESE COUNTRIES TO MAINTAIN TARIFFS FOR REVENUE PURPOSES; AND

"(C) ALL OTHER RELEVANT CIRCUMSTANCES, INCLUDING THE FISCAL, DEVELOPMENTAL, STRATEGIC AND OTHER NEEDS OF THE CONTRACTING PARTIES CONCERNED."

(II) SUBJECT TO THE PROVISIONS OF PARAGRAPH 8(A) OF THIS PROTOCOL, THE NUMBER OF THIS ARTICLE SHALL BE CHANGED TO XXIX.

Y

ARTICLE XXXI SHALL BE AMENDED AS FOLLOWS:

(I) THE WORDS "PARAGRAPH 12 OF ARTICLE XVIII, OR OF" SHALL BE INSERTED IMMEDIATELY FOLLOWING THE WORDS "THE PROVISIONS OF" IN THE FIRST SENTENCE.

(II) THE WORDS "ON OR AFTER 1 JANUARY 1951" IN THE FIRST SENTENCE, AND THE COMMAS PRECEDING AND FOLLOWING THEM, SHALL BE DELETED.

(III) THE WORDS "ON OR AFTER 1 JANUARY 1951" IN THE SECOND SENTENCE, AND THE COMMA FOLLOWING THEM, SHALL BE DELETED.

Z

ARTICLE XXXV SHALL READ:

"ARTICLE XXXV "NON-APPLICATION OF THE AGREEMENT BETWEEN PARTICULAR CONTRACTING PARTIES

"1.  THIS AGREEMENT, OR ALTERNATIVELY ARTICLE II OF THIS AGREEMENT SHALL NOT APPLY AS BETWEEN ANY CONTRACTING PARTY AND ANY OTHER CONTRACTING PARTY IF:

"(A) THE TWO CONTRACTING PARTIES HAVE NOT ENTERED INTO TARIFF NEGOTIATIONS WITH EACH OTHER, AND

"(B) EITHER OF THE CONTRACTING PARTIES, AT THE TIME EITHER BECOMES A CONTRACTING PARTY, DOES NOT CONSENT TO SUCH APPLICATION.

"2.  THE CONTRACTING PARTIES MAY REVIEW THE OPERATION OF THIS ARTICLE IN PARTICULAR CASES AT THE REQUEST OF ANY CONTRACTING PARTY AND MAKE APPROPRIATE RECOMMENDATIONS,"

AA

ANNEX H (PRIOR TO ITS AMENDMENT PURSUANT TO SUB-SECTION (II) OF THIS SECTION) SHALL BE AMENDED AS FOLLOWS:

(I) ANNEX H SHALL READ:

"PERCENTAGE SHARES OF TOTAL EXTERNAL TRADE TO BE USED FOR THE PURPOSE OF MAKING THE DETERMINATION REFERRED TO IN ARTICLE XXVI "(BASED ON THE AVERAGE OF 1949 - 1953)

"IF, PRIOR TO THE ACCESSION OF THE GOVERNMENT OF JAPAN TO THE GENERAL AGREEMENT, THE PRESENT AGREEMENT HAS BEEN ACCEPTED BY CONTRACTING PARTIES THE EXTERNAL TRADE OF WHICH UNDER COLUMN ACCOUNTS FOR THE PERCENTAGE OF SUCH TRADE SPECIFIED IN PARAGRAPH 6 OF ARTICLE XXVI, COLUMN I SHALL BE APPLICABLE FOR THE PURPOSES OF THAT PARAGRAPH.  IF THE PRESENT AGREEMENT HAS NOT BEEN SO ACCEPTED PRIOR TO THE ACCESSION OF THE GOVERNMENT OF JAPAN, COLUMN II SHALL BE APPLICABLE FOR THE PURPOSES OF THAT PARAGRAPH.

COLUMN I (CONTRACTING PARTIES ON 1 MARCH 1955) COLUMN II (CONTRACTING PARITIES ON 1 MARCH 1955 AND JAPAN)

AUSTRALIA 3.1 3.0

AUSTRIA 0.9 0.8

BELGIUM-LUXEMBURG 4.3 4.2

BRAZIL 2.5 2.4

BURMA 0.3 0.3

CANADA 6.7 6.5

CEYLON 0.5 0.5

CHILE 0.6 0.6

CUBA 1.1 1.1

CZECHOSLOVAKIA 1.4 1.4

DENMARK 1.4 1.4

DOMINICAN REPUBLIC 0.1 0.1

FINLAND 1.0 1.0

FRANCE 8.7 8.5

GERMANY, FEDERAL REPUBLIC OF 5.3 5.2

GREECE 0.4 0.4

HAITI 0.1 0.1

INDIA 2.4 2.4

INDONESIA 1.3 1.3

ITALY 2.9 2.8

NETHERLANDS, KINGDOM OF THE 4.7 4.6

NEW ZEALAND 1.0 1.0

NICARAGUA 0.1 0.1

NORWAY 1.1 1.1

PAKISTAN 0.9 0.8

PERU 0.4 0.4

RHODESIE AND NYASALAND 0.6 0.6

SWEDEN 2.5 2.4

TURKEY 0.6 0.6

UNION OF SOUTH AFRICA 1.8 1.8

UNITED KINGDOM 20.3 19.8

UNITED STATES OF AMERICA 20.6 20.1

URUGUAY 0.4 0.4

JAPAN - 2.3

100.0 100.0

"NOTE: THESE PERCENTAGES HAVE BEEN COMPUTED TAKING INTO ACCOUNT THE TRADE OF ALL TERRITORIES IN RESPECT OF WHICH THE GENERAL AGREEMENT ON TARIFFS AND TRADE IS APPLIED."

(II) SUBJECT TO THE PROVISIONS OF PARAGRAPH 8(B) OF THIS PROTOCOL, THE HEADING OF ANNEX H SHALL READ: "ANNEX G".

BB

THE HEADING AND TITLE OF ANNEX I (WHICH IS PURSUANT TO SUB-SECTION (I) OF THIS SECTION TO BECOME ANNEX H BUT WHICH IS HEREINAFTER REFERRED TO AS AANEX I) SHALL BE AMENDED AS FOLLOWS:

(I) SUBJECT TO THE PROVISIONS OF PARAGRAPH 8(B) OF THIS PROTOCOL, THE HEADING OF THIS ANNEX SHALL READ: "ANNEX H".

(II) THE TITLE OF THIS ANNEX SHALL READ: "NOTES AND SUPPLEMENTARY PROVISIONS".

CC

THE NOTES IN ANNEX I RELATING TO ARTICLE VI SHALL BE AMENDED AS FOLLOWS:

(I) THE NOTE TO PARAGRAPH 1 SHALL BE PRECEDED BY THE NUMERAL "1".

(II) THE FOLLOWING NEW NOTE SHALL BE INSERTED AFTER THE NOTE TO PARAGRAPH 1:

"2.  IT IS RECOGNIZED THAT, IN THE CASE OF IMPORTS FROM A COUNTRY WHICH HAS A COMPLETE OR SUBSTANTIALLY COMPLETE MONOPOLY OF ITS TRADE AND WHERE ALL DOMESTIC PRICES ARE FIXED BY THE STATE, SPECIAL DIFFICULTIES MAY EXIST IN DETERMINING PRICE COMPARABILITY FOR THE PURPOSES OF PARAGRAPH 1, AND IN SUCH CASES IMPORTING CONTRACTING PARTIES MAY FIND IT NECESSARY TO TAKE INTO ACCOUNT THE POSSIBILITY THAT A STRICT COMPARISON WITH DOMESTIC PRICES IN SUCH A COUNTRY MAY NOT ALWAYS BE APPROPRIATE."

(III) THE FOLLOWING NEW NOTE SHALL BE ADDED TO THE NOTES TO ARTICLE VI:

"PARAGRAPH 6(B)

"WAIVERS UNDER THE PROVISIONS OF THIS SUB-PARAGRAPH SHALL BE GRANTED ONLY ON APPLICATION BY THE CONTRACTING PARTY PROPOSING TO LEVY AN ANTI-DUMPING OR COUNTERVAILING DUTY, AS THE CASE MAY BE."

DD

THE NOTES IN ANNEX I RELATING TO ARTICLE VII SHALL BE AMENDED AS FOLLOWS:

(I) THE NOTE TO PARAGRAPH 1 SHALL READ:

"PARAGRAPH 1

"THE EXPRESSION "OR OTHER CHARGES" IS NOT TO BE REGARDED AS INCLUDING INTERNAL TAXES OR EQUIVALENT CHARGES IMPOSED ON OR IN CONNEXION WITH IMPORTED PRODUCTS."

(II) THE NOTES TO PARAGRAPH 2 SHALL READ:

"PARAGRAPH 2

"1.  IT WOULD BE IN CONFORMITY WITH ARTICLE VII TO PRESUME THAT "ACTUAL VALUE" MAY BE REPRESENTED BY THE INVOICE PRICE, PLUS ANY NON-INCLUDED CHARGES FOR LEGITIMATE COSTS WHICH ARE PROPER ELEMENTS OF "ACTUAL VALUE" AND PLUS ANY ABNORMAL DISCOUNT OR OTHER REDUCTION FROM THE ORDINARY COMPETITIVE PRICE.

"2.  IT WOULD BE IN CONFORMITY WITH ARTICLE VII PARAGRAPH 2(B), FOR A CONTRACTING PARTY TO CONSTRUE THE PHRASE IN THE ORDINARY COURSE OF TRADE ... UNDER FULLY COMPETITIVE CONDITIONS", AS EXCLUDING ANY TRANSACTION WHEREIN THE BUYER AND SELLER ARE NOT INDEPENDENT OF EACH OTHER AND PRICE IS NOT THE SOLE CONSIDERATION.

"3.  THE STANDARD OF "FULLY COMPETITIVE CONDITIONS" PERMITS A CONTRACTING PARTY TO EXCLUDE FROM CONSIDERATION PRICES INVOLVING SPECIAL DISCOUNTS LIMITED TO EXCLUSIVE AGENTS.

"4.  THE WORDING OF SUB-PARAGRAPHS (A) AND (B) PERMITS A CONTRACTING PARTY TO DETERMINE THE VALUE FOR CUSTOMS PURPOSES UNIFORMLY EITHER (1) ON THE BASIS OF A PARTICULAR EXPORTER'S PRICES OF THE IMPORTED MERCHANDISE, OR (2) ON THE BASIS OF THE GENERAL PRICE LEVEL OF LIKE MERCHANDISE."

EE

THE NOTES IN ANNEX I TO ARTICLE VIII SHALL READ:

"1.  WHILE ARTICLE VIII DOES NOT COVER THE USE OF MULTIPLE RATES OF EXCHANGE AS SUCH, PARAGRAPHS 1 AND 4 CONDEMN THE USE OF EXCHANGE TAXES OR FEES AS A DEVICE FOR IMPLEMENTING MULTIPLE CURRENCY PRACTICES; IF, HOWEVER, A CONTRACTING PARTY IS USING MULTIPLE CURRENOY EXCHANGE FEES FOR BALANCE OF PAYMENTS REASONS WITH THE APPROVAL OF THE INTERNATIONAL MONETARY FUND, THE PROVISIONS OF PARAGRAPH 9(A) OF ARTICLE XV FULLY SAFEGUARD ITS POSITION.

"2.  IT WOULD BE CONSISTENT WITH PARAGRAPH 1 IF ON THE IMPORTATION OF PRODUCTS FROM THE TERRITORY OF A CONTRACTING PARTY INTO THE TERRITORY OF ANOTHER CONTRACTING PARTY, THE PRODUCTION OF CERTIFICATES OF ORIGIN SHOULD ONLY BE REQUIRED TO THE EXTENT THAT IS STRICTLY INDISPENSABLE."

FF

THE FOLLOWING NOTE SHALL BE INSERTED IN ANNEX I PRECEDING THE HEADING "AD ARTICLE XI":

"AD ARTICLES XI, XII, XIII, XIV AND XVIII

"THROUGHOUT ARTICLES XI, XII, XIII, XIV AND XVIII THE TERMS "IMPORT RESTRICTIONS" OR "EXPORT RESTRICTIONS" INCLUDE RESTRICTIONS MADE EFFECTIVE THROUGH STATE-TRADING OPERATIONS."

GG

THE NOTES IN ANNEX I TO ARTICLE XII SHALL READ:

############

"THE CONTRACTING PARTIES SHALL MAKE PROVISION FOR THE UTMOST SECRECY IN THE CONDUCT OF ANY CONSULTATION UNDER THE PROVISIONS OF THIS ARTICLE.

"PARAGRAPH 3(C)(I)

"CONTRACTING PARTIES APPLYING RESTRICTIONS SHALL ENDEAVOUR TO AVOID CAUSING SERIOUS PREJUDICE TO EXPORTS OF A COMMODITY ON WHICH THE ECONOMY OF A CONTRACTING PARTY IS LARGELY DEPENDENT.

"PARAGRAPH 4(B)

"IT IS AGREED THAT THE DATE SHALL BE WITHIN NINETY DAYS AFTER THE ENTRY INTO FORCE OF THE AMENDMENTS OF THIS ARTICLE EFFECTED BY THE PROTOCOL AMENDING THE PREAMBLE AND PARTS II AND III OF THIS AGREEMENT.  HOWEVER, SHOULD THE CONTRACTING PARTIES FIND THAT CONDITIONS WERE NOT SUITABLE FOR THE APPLICATION OF THE PROVISIONS OF THIS SUB-PARAGRAPH AT THE TIME ENVISAGED, THEY MAY DETERMINE A LATER DATE; PROVIDED THAT SUCH DATE IS NOT MORE THAN THIRTY DAYS AFTER SUCH TIME AS THE OBLIGATIONS OF ARTICLE VIII, SECTIONS 2, 3 AND 4 OF THE ARTICLES OF AGREEMENT OF THE INTERNATIONAL MONETARY FUND BECOME APPLICABLE TO CONTRACTING PARTIES, MEMBERS OF THE FUND, THE COMBINED FOREIGN TRADE OF WHICH CONSTITUTES AT LEAST FIFTY PER CENTUM OF THE AGGREGATE FOREIGN TRADE OF ALL CONTRACTING PARTIES.

"PARAGRAPH 4(E)

"IT IS AGREED THAT PARAGRAPH 4(E) DOES NOT ADD ANY NEW CRITERIA FOR THE IMPOSITION OR MAINTENANCE OF QUANTITATIVE RESTRICTIONS FOR BALANCE OF PAYMENTS REASONS.  IT IS SOLELY INTENDED TO ENSURE THAT ALL EXTERNAL FACTORS SUCH AS CHANGES IN THE TERMS OF TRADE, QUANTITATIVE RESTRICTIONS, EXCESSIVE TARIFFS AND SUBSIDIES, WHICH MAY BE CONTRIBUTING TO THE BALANCE OF PAYMENTS DIFFICULTIES OF THE CONTRACTING PARTY APPLYING RESTRICTIONS WILL BE FULLY TAKEN INTO ACCOUNT."

HH

SUBJECT TO THE PROVISIONS OF PARAGRAPH 8(C) OF THIS PROTOCOL, THE NOTES IN ANNEX I TO ARTICLE XIV SHALL BE AMENDED AS FOLLOWS:

THE NOTE TO PARAGRAPH 1(G) SHALL BE DELETED AND THE FOLLOWING NOTE SHALL BE INSERTED IN PLACE THEREOF:

"PARAGRAPH 1

"THE PROVISIONS OF THIS PARAGRAPH SHALL NOT BE SO CONSTRUED AS TO PRECLUDE FULL CONSIDERATION BY THE CONTRACTING PARTIES, IN THE CONSULTATIONS PROVIDED FOR IN PARAGRAPH 4 OF ARTICLE XII AND IN PARAGRAPH 12 OF ARTICLE XVIII, OF THE NATURE, EFFECTS AND REASONS FOR DISCRIMINATION IN THE FIELD OF IMPORT RESTRICTIONS."

II

THE FOLLOWING NEW NOTES SHALL BE INSERTED IMMEDIATELY AFTER THE NOTE IN ANNEX I TO ARTICLE XV:

"AD ARTICLE XVI

"THE EXEMPTION OF AN EXPORTED PRODUCT FROM DUTIES OR TAXES BORNE BY THE LIKE PRODUCT WHEN DESTINED FOR DOMESTIC CONSUMPTION, OR THE REMISSION OF SUCH DUTIES OR TAXES IN AMOUNTS NOT IN EXCESS OF THOSE WHICH HAVE ACCRUED, SHALL NOT BE DEAMED TO BE A SUBSIDY.

"SECTION B

"1.  NOTHING IN SECTION B SHALL PRECLUDE THE USE BY A CONTRACTING PARTY OF MULTIPLE RATES OF EXCHANGE IN ACCORDANCE WITH THE ARTICLES OF AGREEMENT OF THE INTERNATIONAL MONETARY FUND.

"2.  FOR THE PURPOSES OF SECTION B, A "PRIMARY PRODUCT" IS UNDERSTOOD TO BE ANY PRODUCT OF FARM, FOREST OR FISHERY, OR ANY MINERAL, IN ITS NATURAL FORM OR WHICH HAS UNDERGONE SUCH PROCESSING AS IS CUSTOMARILY REQUIRED TO PRSPARE IT FOR MARKETING IN SUBSTANTIAL VOLUME IN INTERNATIONAL TRADE.

"PARAGRAPH 3

"1.  THE FACT THAT A CONTRACTING PARTY HAS NOT EXPORTED THE PRODUCT IN QUESTION DURING THE PREVIOUS REPRESENTATIVE PERIOD WOULD NOT IN ITSELF PRECLUDE THAT CONTRACTING PARTY FROM ESTABLISHING ITS RIGHT TO OBTAIN A SHARE OF THE TRADE IN THE PRODUCT CONCERNED.

"2.  A SYSTEM FOR THE STABILIZATION OF THE DOMESTIC PRICE OR OF THE RETURN TO DOMESTIC PRODUCERS OF A PRIMARY PRODUCT INDEPENDENTLY OF THE MOVEMENTS OF EXPORT PRICES, WHICH RESULTS AT TIMES IN THE SALE OF THE PRODUCT FOR EXPORT AT A PRICE LOWER THAN THE COMPARABLE PRICE CHARGED FOR THE LIKE PRODUCT TO BUYERS IN THE DOMESTIC MARKET, SHALL BE CONSIDERED NOT TO INVOLVE A SUBSIDY ON EXPORTS WITHIN THE MEANING OF PARAGRAPH 3 IF THE CONTRACTING PARTIES DETERMINE THAT:

"(A) THE SYSTEM HAS ALSO RESULTED, OR IS SO DESIGNED AS TO RESULT, IN THE SALE OF THE PRODUCT FOR EXPORT AT A PRICE HIGHER THAN THE COMPARABLE PRICE CHARGED FOR THE LIKE PRODUCT TO BUYERS IN THE DOMESTIC MARKET; AND

"(B) THE SYSTEM IS SO OPERATED, OR IS DESIGNED SO TO OPERATE, EITHER BECAUSE OF THE EFFECTIVE REGULATION OF PRODUCTION OR OTHERWISE, AS NOT TO STIMULATE EXPORTS UNDULY OR OTHERWISE SERIOUSLY TO PREJUDICE THE INTERESTS OF OTHER CONTRACTING PARTIES.

"NOTWITHSTANDING SUCH DETERMINATION BY THE CONTRACTING PARTIES, OPERATIONS UNDER SUCH A SYSTEM SHALL BE SUBJECT TO THE PROVISIONS OF PARAGRAPH 3 WHERE THEY ARE WHOLLY OR PARTLY FINANCED OUT OF GOVERNMENT FUNDS IN ADDITION TO THE FUNDS COLLECTED FROM PRODUCERS IN RESPECT OF THE PRODUCT CONCERNED.

"PARAGRAPH 4

"THE INTENTION OF PARAGRAPH 4 IS THAT THE CONTRACTING PARTIES SHOULD SEEK BEFORE THE END OF 1957 TO REACH AGREEMENT TO ABOLISH ALL REMAINING SUBSIDIES AS FROM 1 JANUARY 1958; OR, FAILING THIS, TO REACH AGREEMENT TO EXTEND THE APPLICATION OF THE STANDATILL UNTIL THE EARLIEST DATE THEREAFTER BY WHICH THEY CAN EXPECT TO REACH SUCH AGREEMENT."

JJ

THE FOLLOWING NEW NOTES SHALL BE ADDED IMMEDIATELY AFTER THE NOTES TO ARTICLE XVII IN ANNEX I

"PARAGRAPH 3

"NEGOTIATIONS WHICH CONTRACTING PARTIES AGREE TO CONDUCT UNDER THIS PARAGRAPH MAY BE DIRECTED TOWARIS THE REDUCTION OF DUTIES AND OTHER CHARGES ON IMPORTS AND EXPORTS OR TOWARDS THE CONCLUSION OF ANY OTHER MUTUALLY SATISFACTORY ARRANGEMENT CONSISTENT WITH THE PROVISIONS OF THIS AGREEMENT.  (SEE PARAGRAPH 4 OF ARTICLE II AND THE NOTE TO THAT PARAGRAPH.)

"PARAGRAPH 4(B)

"THE TERM "IMPORT MARK-UP" IN THIS PARAGRAPH SHALL REPRESENT THE MARGIN BY WHICH THE PRICE CHARGED BY THE IMPORT MONOPOLY FOR THE IMPORTED PRODUCT (EXCLUSIVE OF INTERNAL TAXES WITHIN THE PURVIEW OF ARTICLE III, TRANSPORTATION, DISTRIBUTION, AND OTHER EXPENSES INCIDENT TO THE PURCHASE, SALE OR FURTHER PROCESSING, AND A REASONABLE MARGIN OF PROFIT) EXCEEDS THE LANDED COST."

KK

THE NOTES TO ARTICLE XVIII IN ANNEX I SHALL READ:

"AD ARTICLE XVIII

"THE CONTRACTING PARTIES AND THE CONTRACTING PARTIES CONCERNED SHALL PRESERVE THE UTMOST SECRECY IN RESPECT OF MATTERS ARISING UNDER THIS ARTICLE.

"PARAGRAPHS 1 AND 4

"1.  WHEN THEY CONSIDER WHETHER THE ECONOMY OF A CONTRACTING PARTY "CAN ONLY SUPPORT LOW STANDARDS OF LIVING", THE CONTRACTING PARTIES SHALL TAKE INTO CONSIDERATION THE NORMAL POSITION OF THAT ECONOMY AND SHALL NOT BASE THEIR DETERMINATION ON EXCEPTIONAL CIRCUMSTANCES SUCH AS THOSE WHICH MAY RESULT FROM THE TEMPORARY EXISTENCE OF EXCEPTIONALLY FAVOURABLE CONDITIONS FOR THE STAPLE EXPORT PRODUCT OR PRODUCTS OF SUCH CONTRACTING PARTY.

"2.  THE PHRASE "IN THE EARLY STAGES OF DEVELOPMENT" IS NOT MEANT TO APPLY ONLY TO CONTRACTING PARTIES WHICH HAVE JUST STARTED THEIR ECONOMIC DEVELOPMENT, BUT ALSO TO CONTRACTING PARTIES THE ECONOMIES OF WHICH ARE UNDERGOING A PROCESS OF INDUSTRIALIZATION TO CORRECT AN EXCESSIVE DEPENDENCE ON PRIMARY PRODUCTION,

"PARAGRAPHS 2, 3, 7, 13 AND 22

"THE REFERENCE TO THE ESTABLISHMENT OF PARTICULAR INDUSTRIES SHALL APPLY NOT ONLY TO THE ESTABLISHMENT OF A NEW INDUSTRY, BUT ALSO TO THE ESTABLISHMENT OF A NEW BRANCH OF PRODUCTION IN AN EXISTING INDUSTRY AND TO THE SUBSTANTIAL TRANSFORMATION OF AN EXISTING INDUSTRY, AND TO THE SUBSTANTIAL IEXPANSION OF AN EXISTING INDUSTRY SUPPLYING A RELATIVELY SMALL PROPORTION OF THE DOMESTIC DEMAND.  IT SHALL ALSO COVER THE RECONSTRUCTION OF AN INDUSTRY DESTROYED OR SUBSTANTIALLY DAMAGED AS A RESULT OF HOSTILITIES OR NATURAL DISASTERS.

"PARAGRAPH 7(B)

"A MODIFICATION OR WITHDRAWAL, PURSUANT TO PARAGRAPH 7(B), BY A CONTRACTING PARTY, OTHER THAN THE APPLICANT CONTRACTING PARTY, REFERRED TO IN PARAGRAPH 7(A), SHALL BE MADE WITHIN SIX MONTHS OF THE DAY ON WHICH THE ACTION IS TAKEN BY THE APPLICANT CONTRACTING PARTY, AND SHALL BECOME EFFECTIVE ON THE THIRTIETH DAY FOLLOWING THE DAY ON WHICH SUCH MODIFICATION OR WITHDRAWAL HAS BEEN NOTIFIED TO THE CONTRACTING PARTIES.

"PARAGRAPH 11

"THE SECOND SENTENCE IN PARAGRAPH 11 SHALL NOT BE INTERPRETED TO MEAN THAT A CONTRACTING PARTY IS REQUIRED TO RELAX OR REMOVE RESTRICTIONS IF SUCH RELAXATION OR REMOVAL WOULD THEREUPON PRODUCE CONDITIONS JUSTIFYING THE INTENSIFICATION OR INSTITUTION, RESPECTIVELY, OF RESTRICTIONS UNDER PARAGRAPH 9 OF ARTICLE XVIII.

"PARAGRAPH 12(B)

"THE DATE REFERRED TO IN PARAGRAPH 12(B) SHALL BE THE DATE DETERMINED BY THE CONTRACTING PARTIES IN ACCORDANCE WITH THE PROVISIONS OF PARAGRAPH 4(B) OF ARTICLE XII OF THIS AGREEMENT.

"PARAGRAPHS 13 AND 14

"IT IS RECOGNIZED THAT, BEFORE DECIDING ON THE INTRODUCTION OF A MEASURE AND NOTIFYING THE CONTRACTING PARTIES IN ACCORDANCE WITH PARAGRAPH 14, A CONTRACTING PARTY MAY NEED A REASONABLE PERIOD OF TIME TO ASSESS THE COMPETITIVE POSITION OF THE INDUSTRY CONCERNED.

"PARAGRAPHS 15 AND 16

"IT IS UNDERSTOOD THAT THE CONTRACTING PARTIES SHALL INVITE A CONTRACTING PARTY PROPOSING TO APPLY A MEASURE UNDER SECTION C TO CONSULT WITH THEM PURSUANT TO PARAGRAPH 16 IF THEY ARE REQUESTED TO DO SO BY A CONTRACTING PARTY THE TRADE OF WHICH WOULD BE APPRECIABLY AFFECTED BY THE MEASURE IN QUESTION.

"PARAGRAPHS 16, 18, 19 AND 22

"1.  IT IS UNDERSTOOD THAT THE CONTRACTING PARTIES MAY CONCUR IN A PROPOSED MEASURE SUBJECT TO SPECIFIC CONDITIONS OR LIMITATIONS.  IF THE MEASURE AS APPLIED DOES NOT CONFORM TO THE TERMS OF THE CONCURRENCE IT WILL TO THAT EXTENT BE DEEMED A MEASURE IN WHICH THE CONTRACTING PARTIES HAVE NOT CONCURRED.  IN CASES IN WHICH THE CONTRACTING PARTIES HAVE CONCURRED IN A MEASURE FOR A SPECIFIED PERIOD, THE CONTRACTING PARTY CONCERNED, IF IT FINDS THAT THE MAINTENANCE OF THE MEASURE FOR A FURTHER PERIOD OF TIME IS REQUIRED TO ACHIEVE THE OBJECTIVE FOR WHICH THE MEASURE WAS ORIGINALLY TAKEN, MAY APPLY TO THE CONTRACTING PARTIES FOR AN EXTENSION OF THAT PERIOD IN ACCORDANCE WITH THE PROVISIONS AND PROCEDURES OF SECTION C OR D, AS THE CASE MAY BE.

"2.  IT IS EXPECTED THAT THE CONTRACTING PARTIES WILL, AS A RULE, REFRAIN FROM CONCURRING IN A MEASURE WHICH IS LIKELY TO CAUSE SERIOUS PREJUDICE TO EXPORTS OF A COMMODITY ON WHICH THE ECONOMY OF A CONTRACTING PARTY IS LARGELY DEPENDENT.

"PARAGRAPHS 18 AND 22

"THE PHRASE "THAT THE INTERESTS OF OTHER CONTRACTING PARTIES ARE ADEQUATELY SAFEGUARDED" IS MEANT TO PROVIDE LATITUDE SUFFICIENT TO PERMIT CONSIDERATION IN EACH CASE OF THE MOST APPROPRIATE METHOD OF SAFEGUARDING THOSE INTERESTS.  THE APPROPRIATE METHOD MAY, FOR INSTANCE, TAKE THE FORM OF AN ADDITIONAL CONCESSION TO BE APPLIED BY THE CONTRACTING PARTY HAVING RECOURSE TO SECTION C OR D DURING SUCH TIME AS THE DEVIATION FROM THE OTHER ARTICLES OF THE AGREEMENT WOULD REMAIN IN FORCE OR OF THE TEMPORARY SUSPENSION BY ANY OTHER CONTRACTING PARTY REFERRED TO IN PARAGRAPH 18 OF A CONCESSION SUBSTANTIALLY EQUIVALENT TO THE IMPAIRMENT DUE TO THE INTRODUCTION OF THE MEASURE IN QUESTION.  SUCH CONTRACTING PARTY WOULD HAVE THE RIGHT TO SAFEGUARD ITS INTERESTS THROUGH SUCH A TEMPORARY SUSPENSION OF A CONCESSION; PROVIDED THAT THIS RIGHT WILL NOT BE EXERCISED WHEN, IN THE CASE OF A MEASURE IMPOSED BY A CONTRACTING PARTY COMING WITHIN THE SCOPE OF PARAGRAPH 4(A), THECONTRACTING PARTIES HAVE DETERMINED THAT THE EXTENT OF THE COMPENSATORY CONCESSION PROPOSED WAS ADEQUATE.

"PARAGRAPH 19

"THE PROVISIONS OF PARAGRAPH 19 ARE INTENDED TO COVER THE CASES WHERE AN INDUSTRY HAS BEEN IN EXISTENCE BEYOND THE "REASONABLE PERIOD OF TIME" REFERRED TO IN THE NOTE TO PARAGRAPHS 13 AND 14, AND SHOULD NOT BE SO CONSTRUED AS TO DEPRIVE A CONTRACTING PARTY COMING WITHIN THE SCOPE OF PARAGRAPH 4(A) OF ARTICLE XVIII, OF ITS RIGHT TO RESORT TO THE OTHER PROVISIONS OF SECTION C, INCLUDING PARAGRAPH 17, WITH REGARD TO A NEWLY ESTABLISHED INDUSTRY EVEN THOUGH IT HAS BENEFITED FROM INCIDENTAL PROTECTION AFFORDED BY BALANCE OF PAYMENTS IMPORT RESTRICTIONS.

"PARAGRAPH 21

"ANY MEASURE TAKEN PURSUANT TO THE PROVISIONS OF PARAGRAPH 21 SHALL BE WITHDRAWN FORTHWITH IF THE ACTION TAKEN IN ACCORDANCE WITH PARAGRAPH 17 IS WITHDRAWN OR IF THE CONTRACTING PARTIES CONCUR IN THE MEASURE PROPOSED AFTER THE EXPIRATION OF THE NINETY-DAY TIME LIMIT SPECIFIED IN PARAGRAPH 17."

LL

THE FOLLOWING NEW NOTE SHALL BE INSERTED IN ANNEX I:

"AD ARTICLE XX

"SUB-PARAGRAPH (H)

"THE EXCEPTION PROVIDED FOR IN THIS SUB-PARAGRAPH EXTENDS TO ANY COMMODITY AGREEMENT WHICH CONFORMS TO THE PRINCIPLES APPROVED BY THE ECONOMIC AND SOCIAL COUNCIL IN ITS RESOLUTION 30 (IV) OF 28 MARCH 1947."

MM

THE NOTE TO ARTICLE XXVI IN ANNEX I SHALL BE DELETED.

NN

THE FOLLOWING NEW NOTES SHALL BE INSERTED IN ANNEX I:

"AD ARTICLE XXVIII

"THE CONTRACTING PARTIES AND EACH CONTRACTING PARTY CONCERNED SHOULD ARRANGE TO CONDUCT THE NEGOTIATIONS AND CONSULTATIONS WITH THE GREATEST POSSIBLE SECRECY IN ORDER TO AVOID PREMATURE DISCLOSURE OF DETAILS OF PROSPECTIVE TARIFF CHANGES.  THE CONTRACTING PARTIES SHALL BE INFORMED IMMEDIATELY OF ALL CHANGES IN NATIONAL TARIFFS RESULTING FROM RECOURSE TO THIS ARTICLE.

"PARAGRAPH 1

"1.  IF THE CONTRACTING PARTIES SPECIFY A PERIOD OTHER THAN A THREE-YEAR PERIOD, A CONTRACTING PARTY MAY ACT PURSUANT TO PARAGRAPH 1 OR PARAGRAPH 3 OF ARTICLE XXVIII ON THE FIRST DAY FOLLOWING THE EXPIRATION OF SUCH OTHER PERIOD AND, UNLESS THE CONTRACTING PARTIES HAVE AGAIN SPECIFIED ANOTHER PERIOD, SUBSEQUENT PERIODS WILL BE THREE-YEAR PERIODS FOLLOWING THE EXPIRATION OF SUCH SPECIFIED PERIOD.

"2.  THE PROVISION THAT ON 1 JANUARY 1958, AND ON OTHER DAYS DETERMINED PURSUANT TO PARAGRAPH 1, A CONTRACTING PARTY "MAY ... MODIFY OR WITHDRAW A CONCESSION" MEANS THAT ON SUCH DAY, AND ON THE FIRST DAY AFTER THE END OF EACH PERIOD, THE LEGAL OBLIGATION OF SUCH CONTRACTING PARTY UNDER ARTICLE II IS ALTERED; IT DOES NOT MEAN THAT THE CHANGES IN ITS CUSTOMS TARIFF SHOULD NECESSARILY BE MADE EFFECTIVE ON THAT DAY.  IF A TARIFF CHANGE RESULTING FROM NEGOTIATIONS UNDERTAKEN PURSUANT TO THIS ARTICLE IS DELAYED, THE ENTRY INTO FORCE OF ANY COMPENSATORY CONCESSIONS MAY BE SIMILARLY DELAYED.

"3.  NOT EARLIER THAN SIX MONTHS, NOR LATER THAN THREE MONTHS, PRIOR TO 1 JANUARY 1958, OR TO THE TERMINATION DATE OF ANY SUBSEQUENT PERIOD, A CONTRACTING PARTY WISHING TO MODIFY OR WITHDRAW ANY CONCESSION EMBODIED IN THE APPROPRIATE SCHEDULE, SHOULD NOTIFY THE CONTRACTING PARTIES TO THIS EFFECT.  THE CONTRACTING PARTIES SHALL THEN DETERMINE THE CONTRACTING PARTY OR CONTRACTING PARTIES WITH WHICH THE NEGOTIATIONS OR CONSULTATIONS REFERRED TO IN PARAGRAPH 1 SHALL TAKE PLACE.  ANY CONTRACTING PARTY SO DETERMINED SHALL PARTICIPATE IN SUCH NEGOTIATIONS OR CONSULTATIONS WITH THE APPLICANT CONTRACTING PARTY WITH THE AIM OF REACHING AGREEMENT BEFORE THE END OF THE PERIOD.  ANY EXTENSION OF THE ASSURED LIFE OF THE SCHEDULES SHALL RELATE TO THE SCHEDULES AS MODIFIED AFTER SUCH NEGOTIATIONS, IN ACCORDANCE WITH PARAGRAPHS 1, 2 AND 3 OF ARTICLE XXVIII.  IF THE CONTRACTING PARTIES ARE ARRANGING FOR MULTILATERAL TARIFF NEGOTIATIONS TO TAKE PLACE WITHIN THE PERIOD OFSIX MONTHS BEFORE 1 JANUARY 1958, OR BEFORE ANY OTHER DAY DETERMINED PURSUANT TO PARAGRAPH 1, THEY SHALL INCLUDE IN THE ARRANGEMENTS FOR SUCH NEGOTIATIONS SUITABLE PROCEDURES FOR CARRYING OUT THE NEGOTIATIONS REFERRED TO IN THIS PARAGRAPH.

"4.  THE OBJECT OF PROVIDING FOR THE PARTICIPATION IN THE NEGOTIATIONS OF ANY CONTRACTING PARTY WITH A PRINCIPAL SUPPLYING INTEREST, IN ADDITION TO ANY CONTRACTING PARTY WITH WHICH THE CONCESSION WAS INITIALLY NEGOTIATED, IS TO ENSURE THAT A CONTRACTING PARTY WITH A LARGER SHARE IN THE TRADE AFFECTED BY THE CONCESSION THAN A CONTRACTING PARTY WITH WHICH THE CONCESSION WAS INITIALLY NEGOTIATED SHALL HAVE AN EFFECTIVE OPPORTUNITY TO PROTECT THE CONTRACTUAL RIGHT WHICH IT ENJOYS UNDER THIS AGREEMENT.  ON THE OTHER HAND, IT IS NOT INTENDED THAT THE SCOPE OF THE NEGOTIATIONS SHOULD BE SUCH AS TO MAKE NEGOTIATIONS AND AGREEMENT UNDER ARTICLE XXVIII UNDULY DIFFICULT NOR TO CREATE COMPLICATIONS IN THE APPLICATION OF THIS ARTICLE IN THE FUTURE TO CONCESSIONS WHICH RESULT FROM NEGOTIATIONS THEREUNDER.  ACCORDINGLY, THE CONTRACTING PARTIES SHOULD ONLY DETERMINE THAT A CONTRACTING PARTY HAS A PRINCIPAL SUPPLYING INTEREST IF THAT CONTRACTING PARTY HAS HAD, OVER A REASONABLE PERIOD OF TIME PRIOR TO THE NEGOTIATIONS, A LARGER SHARE IN THE MARKET OF THE APPLICANT CONTRACTING PARTY THAN A CONTRACTING PARTY WITH WHICH THE CONCESSION WAS INITIALLY NEGOTIATED OR WOULD, IN THE JUDGMENT OF THE CONTRACTING PARTIES, HAVE HAD SUCH A SHARE IN THE ABSENCE OF DISCRIMINATORY QUANTITATIVE RESTRICTIONS MAINTAINED BY THE APPLICANT CONTRACTING PARTY.  IT WOULD THEREFORE NOT BE APPROPRIATE FOR THE CONTRACTING PARTIES TO DETERMINE THAT MORE THAN ONE CONTRACTING PARTY, OR IN THOSE EXCEPTIONAL CASES WHERE THERE IS NEAR EQUALITY MORE THAN TWO CONTRACTING PARTIES, HAD A PRINCIPAL SUPPLYING INTEREST.

"5.  NOTWITHSTANDING THE DEFINITION OF A PRINCIPAL SUPPLYING INTEREST IN NOTE 4 TO PARAGRAPH 1, THE CONTRACTING PARTIES MAY EXCEPTIONALLY DETERMINE THAT A CONTRACTING PARTY HAS A PRINCIPAL SUPPLYING INTEREST IF THE CONCESSION IN QUESTION AFFECTS TRADE WHICH CONSTITUTES A MAJOR PART OF THE TOTAL EXPORTS OF SUCH CONTRACTING PARTY.

"6.  IT IS NOT INTENDED THAT PROVISION FOR PARTICIPATION IN THE NEGOTIATIONS OF ANY CONTRACTING PARTY WITH A PRINCIPAL SUPPLYING INTEREST, AND FOR CONSULTATION WITH ANY CONTRACTING PARTY HAVING A SUBSTANTIAL INTEREST IN THE CONCESSION WHICH THE APPLICANT CONTRACTING PARTY IS SEEKING TO MODIFY OR WITHDRAW, SHOULD HAVE THE EFFECT THAT IT SHOULD HAVE TO PAY COMPENSATION OR SUFFER RETALIATION GREATER THAN THE WITHDRAWSL OR MODIFICATION SOUGHT, JUDGED IN THE LIGHT OF THE CONDITIONS OF TRADE AT THE TIME OF THE PROPOSED WITHDRAWAL OR MODIFICATION, MAKING ALLOWANCE FOR ANY DISCRIMINATORY QUANTITATIVE RESTRICTIONS MAINTAINED BY THE APPLICANT CONTRACTING PARTY.

"7.  THE EXPRESSION "SUBSTANTIAL INTEREST" IS NOT CAPABLE OF A PRECISE DEFINITION AND ACCORDINGLY MAY PRESENT DIFFICULTIES FOR THE CONTRACTING PARTIES.  IT IS, HOWEVER, INTENDED TO BE CONSTRUED TO COVER ONLY THOSE CONTRACTING PARTIES WHICH HAVE, OR IN THE ABSENCE OF DISCRIMINATORY QUANTITATIVE RESTRICTIONS AFFECTING THEIR EXPORTS COULD REASONABLY BE EXPECTED TO HAVE, A SIGNIFICANT SHARE IN THE MARKET OF THE CONTRACTING PARTY SEEKING TO MODIFY OR WITHDRAW THE CONCESSION.

"PARAGRAPH 4

"1.  ANY REQUEST FOR AUTHORIZATION TO ENTER INTO NEGOTIATIONS SHALL BE ACCOMPANIED BY ALL RELEVANT STATISTICAL AND OTHER DATA.  A DECISION ON SUCH REQUEST SHALL BE MADE WITHIN THIRTY DAYS OF ITS SUBMISSION.

"2.  IT IS RECOGNIZED THAT TO PERMIT CERTAIN CONTRACTING PARTIES, DEPENDING IN LARGE MEASURE ON A RELATIVELY SMALL NUMBER OF PRIMARY COMMODITIES AND RELYING ON THE TARIFF AS AN IMPORTANT AID FOR FURTHERING DIVERSIFICATION OF THEIR ECONOMIES OR AS AN IMPORTANT SOURCE OF REVENUE, NORMALLY TO NEGOTIATE FOR THE MODIFICATION OR WITHDRAWAL OF CONCESSIONS ONLY UNDER PARAGRAPH 1 OF ARTICLE XXVIII, MIGHT CAUSE THEM AT SUCH A TIME TO MAKE MODIFICATIONS OR WITHDRAWALS WHICH IN THE LONG RUN WOULD PROVE UNNECESSARY.  TO AVOID SUCH A SITUATION THE CONTRACTING PARTIES SHALL AUTHORIZE ANY SUCH CONTRACTING PARTY, UNDER PARAGRAPH 4, TO ENTER INTO NEGOTIATIONS UNLESS THEY CONSIDER THIS WOULD RESULT IN, OR CONTRIBUTE SUBSTANTIALLY TOWARDS, SUCH AN INCREASE IN TARIFF LEVELS AS TO THREATEN THE STABILITY OF THE SCHEDULES TO THIS AGREEMENT OR LEAD TO UNDUE DISTURBANCE OF INTERNATIONAL TRADE.

"3.  IT IS EXPECTED THAT NEGOTIATIONS AUTHORIZED UNDER PARAGRAPH 4 FOR MODIFICATION OR WITHDRAWAL OF A SINGLE ITEM, OR A VERY SMALL GROUP OF ITEMS, COULD NORMALLY BE BROUGHT TO A CONCLUSION IN SIXTY DAYS.  IT IS RECOGNIZED, HOWEVER, THAT SUCH A PERIOD WILL BE INADEQUATE FOR CASES INVOLVING NEGOTIATIONS FOR THE MODIFICATION OR WITHDRAWAL OF A LARGER NUMBER OF ITEMS AND IN SUCH CASES, THEREFORE, IT WOULD BE APPROPRIATE FOR THE CONTRACTING PARTIES TO PRESCRIBE A LONGER PERIOD.

"4.  THE DETERMINATION REFERRED TO IN PARAGRAPH 4(D) SHALL BE MADE BY THE CONTRACTING PARTIES WITHIN THIRTY DAYS OF THE SUBMISSION OF THE MATTER TO THEM, UNLESS THE APPLICANT CONTRACTING PARTY AGREES TO A LONGER PERIOD.

"5.  IN DETERMINING UNDER PARAGRAPH 4(D) WHETHER AN APPLICANT CONTRACTING PARTY HAS UNREASONABLY FAILED TO OFFER ADEQUATE COMPENSATION, IT IS UNDERSTOOD THAT THE CONTRACTING PARTIES WILL TAKE DUE ACCOUNT OF THE SPECIAL POSITION OF A CONTRACTING PARTY WHICH HAS BOUND A HIGH PROPORTION OF ITS TARIFFS AT VERY LOW RATES OF DUTY AND TO THIS EXTENT HAS LESS SCOPE THAT OTHER CONTRACTING PARTIES TO MAKE COMPENSATORY ADJUSTMENT."

OO

THE FOLLOWING NEW NOTE SHALL BE INSERTED IN ANNEX I.

(I) THE NOTE SHALL READ:

"AD ARTICLE XXVIII BIS

"PARAGRAPH 3

"IT IS UNDERSTOOD THAT THE REFERENCE TO FISCAL NEEDS WOULD INCLUDE THE REVENUE ASPECT OF DUTIES AND PARTICULARLY DUTIES IMPOSED PRIMARILY FOR REVENUE PURPOSES OR DUTIES IMPOSED ON PRODUCTS WHICH CAN BE SUBSTITUTED FOR PRODUCTS SUBJECT TO REVENUE DUTIES TO PREVENT THE AVOIDANCE OF SUCH DUTIES."

(II) SUBJECT TO THE PROVISIONS OF PARAGRAPH 8(A) OF THIS PROTOCOL, THE HEADING OF THIS NOTE SHALL READ: "AD ARTICLE XXIX"

PP

THE FINAL NOTE IN ANNEX I SHALL BE DELETED.

QQ

SUBJECT TO THE PROVISIONS OF PARAGRAPH 8(C) OF THIS PROTOCOL, ANNEX J, AND THE NOTE RELATING THERETO, SHALL BE DELETED.

RR

SUBJECT TO THE PROVISIONS OF PARAGRAPH 8(A) OF THIS PROTOCOL, THE NUMBER OF ARTICLE I, II OR III SHALL BE CHANGED TO II, III OR IV, RESPECTIVELY, WHEREVER REFERENCE TO ANY SUCH ARTICLE, OCCURS IN THE PROVISIONS OF THE GENERAL AGREEMENT OTHER THAN ARTICLES I (WHICH IS, PURSUANT TO SECTION B(A) OF THE PROTOCOL AMENDING PART I AND ARTICLES XXIX AND XXX OF THE GENERAL AGREEMENT, TO BECOME ARTICLE II BUT IS HEREIN REFERRED TO AS "ARTICLE I"), II (WHICH IS, PURSUANT TO SECTION C(A) OF THAT PROTOCOL, TO BECOME ARTICLE III BUT IS HEREIN REFERRED TO AS "ARTICLE II"), XXIX OR XXX THEREOF, ANNEXES RELATED TO SUCH ARTICLES OR SCHEDULES ANNEXED TO THE GENERAL AGREEMENT, AND WHEREVER SUCH PROVISIONS MAY HEREAFTER BE AMENDED TO REFER TO ANY SUCH ARTICLE.

SS

THE NUMBER OF PARAGRAPH 2, 3, 4, 5 OR 6 OF ARTICLE XXVI SHALL BE CHANGED TO 3, 4, 5, 6 OR 7, RESPECTIVELY, WHEREVER A REFERENCE TO ANY SUCH PARAGRAPH OCCURS IN THE PROVISIONS OF THE GENERAL AGREEMENT OTHER THAN ARTICLES I, II, XXIX OR XXX THEREOF, ANNEXES RELATING TO SUCH ARTICLES, OR SCHEDULES ANNEXED TO THE GENERAL AGREEMENT, AND WHEREVER SUCH PROVISIONS MAY HEREAFTER BE AMENDED TO REFER TO ANY SUCH PARAGRAPH.

2.  THIS PROTOCOL SHALL BE DEPOSITED WITH THE EXECUTIVE SECRETARY TO THE CONTRACTING PARTIES TO THE GENERAL AGREEMENT AND, AFTER THE ENTRY INTO FORCE OF THE AGREEMENT ON THE ORGANIZATION FOR TRADE COOPERATION, WITH THE DIRECTOR-GENERAL OF THAT ORGANIZATION.

3.  THIS PROTOCOL SHALL BE OPEN FOR SIGNATURE BY THE CONTRACTING PARTIES TO THE GENERAL AGREEMENT UNTIL 15 NOVEMBER 1955; PROVIDED THAT THE PERIOD DURING WHICH THIS PROTOCOL MAY BE SIGNED MAY IN RESPECT OF ANY CONTRACTING PARTY, BY A DECISION OF THE CONTRACTING PARTIES, BE EXTENDED BEYOND THAT DATE.

4.  THE EXECUTIVE SECRETARY TO THE CONTRACTING PARTIES TO THE GENERAL AGREEMENT, OR THE DIRECTOR-GENERAL OF THE ORGANIZATION, AS THE CASE MAY BE, SHALL PROMPTLY FURNISH A CERTIFIED COPY OF THIS PROTOCOL, AND A NOTIFICATION OF EACH SIGNATURE THERETO, TO EACH CONTRACTING PARTY TO THE GENERAL AGREEMENT.

5.  SIGNATURE OF THIS PROTOCOL IN ACCORDANCE WITH PARAGRAPH 3 OF THIS PROTOCOL SHALL BE DEEMED TO CONSTITUTE AN ACCEPTANCE OF THE AMENDMENT SET FORTH IN PARAGRAPH 1 IN ACCORDANCE WITH ARTICLE XXX OF THE GENERAL AGREEMENT.

6.  SIGNATURE OF THIS PROTOCOL BY A CONTRACTING PARTY SHALL CONSTITUTE, EXCEPT AS IT MAY SPECIFY OTHERWISE AT THE TIME OF SIGNATURE OF THIS PROTOCOL, AN ACCEPTANCE OF THE PROTOCOLS OF RECTIFICATIONS OR MODIFICATIONS OF THE GENERAL AGREEMENT HERETOFORE DRAWN UP BY THE CONTRACTING PARTIES AND OPEN FOR ACCEPTANCE, WHICH HAD NOT BEEN SIGNED OR ACCEPTED BY THAT CONTRACTING PARTY, SUCH ACCEPTANCE TO TAKE EFFECT ON THE DAY OF SIGNATURE OF THIS PROTOCOL.

7.  THIS PROTOCOL SHALL BE REGISTERED IN ACCORDANCE WITH THE PROVISIONS OF ARTICLE 102 OF THE CHARTER OF THE UNITED NATIONS.

8.  THE AMENDMENT SET FORTH IN PARAGRAPH 1 SHALL BECOME EFFECTIVE, IN ACCORDANCE WITH THE PROVISIONS OF ARTICLE XXX OF THE GENERAL AGREEMENT, FOLLOWING ITS ACCEPTANCE BY TWO-THIRDS OF THE GOVERNMENTS WHICH ARE THEN CONTRACTING PARTIES; PROVIDED THAT:

(A) THE MODIFICATIONS PROVIDED FOR IN SECTIONS A, B, C, X(II), OO(II) AND RR SHALL NOT BECOME OPERATIVE PRIOR TO THE DAY ON WHICH THE AMENDMENT IN SECTION A OF THE PROTOCOL AMENDING PART I AND ARTICLES XXIX AND XXX OF THE GENERAL AGREEMENT HAS BECOME EFFECTIVE;

(B) THE MODIFICATIONS PROVIDED FOR IN SECTIONS U(II), AA(II) AND BB(I) SHALL NOT BECOME OPERATIVE PRIOR TO THE DAY ON WHICH THE AMENDMENT IN SECTION B OF THE PROTOCOL REFERRED TO IN SUB-PARAGRAPH (A) OF THIS PARAGRAPH HAS BECOME EFFECTIVE; AND

(C) THE MODIFICATIONS PROVIDED FOR IN SECTIONS J(I), HH AND QQ SHALL NOT BECOME OPERATIVE PRIOR TO THE DAY ON WHICH THE OBLIGATIONS OF SECTIONS 2, 3 AND 4 OF ARTICLE VIII OF THE ARTICLES OF AGREEMENT OF THE INTERNATIONAL MONETARY FUND HAVE BECOME APPLICABLE TO CONTRACTING PARTIES WHICH ARE MEMBERS OF THE FUND, THE COMBINED FOREIGN TRADE OF WHICH CONSTITUTES AT LEAST FIFTY PER CENTUM OF THE AGGREGATE FOREIGN TRADE OF ALL CONTRACTING PARTIES.

IN WITNESS WHEREOF THE RESPECTIVE REPRESENTATIVES DULY AUTHORIZED TO THAT EFFECT, HAVE SIGNED THIS PROTOCOL.

DONE, AT GENEVA IN A SINGLE COPY, IN THE ENGLISH AND FRENCH LANGUAGES, BOTH TEXTS AUTHENTIC, THIS TENTH DAY OF MARCH ONE THOUSAND NINE HUNDRED AND FIFTY-FIVE.