N.Z. MEMBERSHIP OF G.A.T.T.

Press, Volume XCI, Issue 27569, 28 January 1955, Page 2

N.Z. MEMBERSHIP OF G.A.T.T.

SPECIAL EXCHANGE AGREEMENT

WAIVER GRANTED TO DOMINION

(Neto Zealand Press Association)

WELLINGTON, January 27.

The Minister of Finance (Mr J. T. Watts) said this evening that cabled advice has been received from the New Zealand delegation at the session in Geneva of the General Agreement on Tariffs and Trade Contracting parties, which is reviewing the agreement, that the contracting parties have granted New Zealand a waiver from signing a special exchange agreement. “The articles of G.A.T.T. provide that any member which is not in the International Monetary Fund shall sign a special exchange agreement. The text of special exchange agreements lays down obligations which, in many respects, are identical with the obligations of fund memberships,” he said. ‘‘New Zealand has always argued that it is unreasonable to expect a country which is not Willing to join the fund to accept fund Obligations without any benefits of fund membership. New Zealand has therefore not signed a special exchange agreement. “The waiver now granted notes that New Zealand has taken no exchange action which has frustrated the intent of G.A.T.T., and that the New Zealand. Government has given assurances that it will continue to act in exchange matters in a manner fully compatible with the fund’s principles and in accordance with the intent of G.A.T.T. ‘‘The terms of the waiver provide: (a) That New Zealand shall report to and consult with G.A.T.T, annually on any action taken which would have required to be reported to the contracting parties had New Zealand signed a special exchange agreement; “(b) That New Zealand shall consult at any time with the contracting parties at the request of any contracting party which considers that New Zealand has taken exchange action which has frustrated the intent of the provisions of G.A.T.T. “The waiver is granted for an indefinite period. It may be terminated if the contracting parties fiwd that New Zealand has taken action which is contrary to the intent of G.A.T.T.” The Minister said that the granting of this waiver was a very satisfactory solution to meet New Zealand’s particular circumstances. Until now New Zealand had been technically in breach of one of the provisions of G.A T T