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DEPARTMENT OF STATE
Articles reprinted from the
and February 16, 1947
UNITED STATES GOVERNMENT PRINTING OFFICE
WASHINGTON : 1947
For sale by the Superintendent of Documents, U. S. Government Printing Office
UNITED STATES OF AMERICA
2 CURBING CARTEL & MONOP
PRELIMINARY PROPOSALS for an INTERNATIONAL TRADE ORGANIZATION
Employment and Economic Activity:
and maintenance of high and steadily rising levels of effective demand, employment, and economic activity. (1) General undertakings of Members. (2) Recourse in case a Member is damaged by failure of another Member to fulfil undertakings. (3) Consultation and exchange of information. (4) Assignment of functions." 3 The final report on its work included a series of draft articles considerably broader in scope than the original United States draft but consistent in form and spirit with that document, together with a draft resolution for the attention of the Economic and Social Council.
flects the close connection between the two subjects. It is clear that a two-way relationship is involved. No matter how satisfactory employment levels may be in the various countries, higher standards of living will not be obtained if barriers are allowed to block the flow of international trade. Conversely, in the face of serious unemployment in one or more of the major industrial and trading countries, a reduced level of trade barriers might fail to secure high standards of living or even a large volume of trade. For example, the fact that tariffs are low will not by itself prevent a decline in income and demand which communicates itself from country to country through international markets.
The United States draft charter? accordingly contained a chapter on employment provisions which in five articles recognized the relation of employment to the purposes of the International Trade Organization; pledged each Member to take action designed to achieve and maintain full employment within its own jurisdiction through measures appropriate to its political and economic institutions; stated that employment measures should not be of such a character as to create unemployment in other countries or to conflict with trade objectives; provided for consultation and ex
change of information on matters relating to em| ployment; and assigned the relevant functions to the Economic and Social Council.
At the London meeting, Committee I was assigned the topic of employment and economic activity and adopted the following agenda : “International agreement relating to the achievement
Undertakings With Respect to Levels of
The central problem confronting Committee I involved the drafting of provisions that would contain an expression of policy as to the maintenance of employment levels and levels of effective demand; that would adequately recognize the possible need of Members to adopt protective measures if their economies should be threatened as a result of a serious decline in employment and effective demand beyond their borders; and that would at the same time support rather than conflict with the commercial-policy provisions of the charter.
The ends sought were agreed to be a high level of employment-already recognized in article 55 of the United Nations Charter to be a main purpose of the United Nations
and high and stable levels of effective demand for goods and services. The second of these conditions tends to create and also to follow from the first, but adequate demand may in certain circumstances nevertheless fail to be transmitted internationally by an economy in which employment levels are satisfactory.
It was recognized that Members could not guarantee high and stable levels of employment and de
"A report on the work of Committee 1, Employment and Economic Activity.
'Suggested Charter for an International Trade Organization of the United Nations, published in September 1946 (Department of State publication 2598. Commercial Policy Series 93).