Finance Minister Explains Havana Charter

Chronicle (Levin), 12 June 1948, Page 6

Finance Minister Explains Havana Charter

Press Association )

(Per

WELLINGTON, June 11. ' ' The Charter of the . ' Internationai Trade ( Organisation seeks to brealf dovvn barriers to world trade whilst' at Hhe.same time permitting natious to implement their internal stable,' i'ull employment and production pro; grammes, " said the Minister of Fin'f ance (Hon. W. Nash) commenting on the' report issued today of N'ew'Zealand's. delegation to the Conference on.- Trade, and Emplpyment re.qentiy held at Havana.' v • "The reports set out the full d,etail^, of the Charter,' the text . of "which' was aiready. agreed to by 53 nations at. Havana, including New Zealand. The Charter has yet to be ratified by New Zealand," " added Mr. Nash, ' "in terms of: Article 55 of the ■ Unitcd Nations Charter, Tliis .present .Charter will be an ijistrument for securing higher living stvan'dar"ds, full employnient, and economic and social progress. ' ' The Internationai Trade Organisation to be set up will be a specialised; agency of the Cnited Nations gove'rped by a conference of all its members, . each of whom will have but one irrespective of its size or influence. The Charter particulai'iy provides fpr the raising . of the eficective demand for Lncreased production and the facilit'ation of exchange, and for the ecbuoihic development of all nations, particniarly the under-developed nations, f&r equal access tu ihe world 's raw materials," reduction of trade bafrierSj avoidance of economic warfare, . and.'a solution of problems by consultatiou," Mr. " Nash added. ■ "Members are obliged to pursue Buitabie,, i'ull employment.. policieS • aithough, .of'cours.e, tlie oliligatidij. cannot be too speciiic and wilPy"depend. largqly on the. good will of the participatihg nations. The provisiolis for-. bididng trade r.estrictions by unde.r-.de-vcloped natious havC been r'Claxed from . their original . form and' " now broadly perniit internal mo'asfi'J'es which -*do not confliet ,with the aijns of t'he Charter. " , '

Under the ; (Charter NenCZpalaud is pennitted to inaintain imp'ort control and selection known as 'quantitative restrictidns,' these rcstriclions being pennitted where n'atioiis are in balance of payment difficultiqs, or where the lifting of restrictions may threaten their overseas reserves. Discriiiunation in trade is only permitted in eases where currency is scarce and during periods of world disequilibrium. Articles 25 and 28, which deal With subsidies, do not interfere with New Zcaland's guaranteed price system, qor dp articles on -ytate trading, nnmbers, 29 and 32, int'erfere with New ^ealajid's bullc:.. cd.qtract's 'with; the' ^Jjn.ited'khigdoni.' Nothiiig in the -Char,'^er 'wdAkens *the.pxinciple of ;Iinperijjl (p'rqferenCq \Vhich has, bee'fi* re.tametl I.im i'quv'ihcbd; ¥hat'' Hyitli; t-he ^odwjll and gdo'd sense . p'f tlie nafipus1 the/Charfel" Nyill jprove effe'ct'ivc iii ''in-, credsing' th'b level of world trade afid raisin'g Hvijig, standards . everywhere. " ' 'v: