STATE TRADING QUESTION RAISED AT GENEVA TALKS

Grey River Argus, 28 June 1947, Page 3

STATE TRADING QUESTION RAISED AT GENEVA TALKS

GENEVA, June 26.

New Zealand and the United States clashed during the preparation of the Charter of' the International Trade Organisation over the interpretation of “restrictive business practices”, applying to certain features of State trading. The Charter calls on members to prohibit business practices in restraint of competition or limiting access to markets. The United States contended that the system of import licences that New Zealand employed constituted both discrimination and a restrictive practice, and demanded that it should cease.

New Zealand replied that the system was not opposed to the Charter, and insisted on the retention of the system, because its l goal was full employment and trade expansion, and was preferable to blind increases of tariff rates after the American manThe United States delegation replied that the way in which New Zealand operated the system might be beneficial to international trade, but the possibility of it being wrongly applied by less scrupulous nations was sufficient reason for opposing its incorporation in the Charter. America suggested that the Charter should provide safeguards, since if it became necessary to limit imports because of a diminishing reserve of foreign exchange New Zealand could apply for permission -to act.

New Zealand said it disliked the idea of cumbersome international procedure when rapid action might be needed.

The United Kingdom, Australia, and South Africa supported New Zealand. Canada sided with the United States. The matter is to be referred to a sub-committee for a solution.