comments of the Sub-Committee in its report were confined to only certain of the amendments proposed earlier.

7. The Sub-Committee agreed with a suggestion by the representative of the United States of America that, in order to secure continuity in the balance of payments provisions, it would be desirable to move the Article on fair labour standards from its earlier position to a position at the end of the Chapter.

8. The Sub-Committee discussed the proposal presented by the delegation of Italy for the inclusion of a provision for international co-ordination of employment services with a view to facilitating the migration of labour where desirable. In the course of the discussion information was supplied concerning the activities of the Permanent Migration Committee of the International Labour Organization in this field and reference was also made to the Population Commission of the Economic and Social Council. It was the view of the Sub-Committee that the question of the international movement of labour was only one aspect, although an important one, of the general question of international action to assist in securing high levels of employment and that if mention were to be made of this aspect reference to other aspects would also have to be included at some length. It was the view of the Sub-Committee that it was unnecessary to include in Chapter II any specific reference to this particular aspect of the question since the present language of the Chapter included all the various aspects. The Sub-Committee considered that in connection with the proposed Resolution on Employment consideration might be given to the desirability of drawing the attention of the Economic and Social Council to the importance of international mobility of labour and of securing an international co-ordination of employment services for this purpose. The representative of Italy indicated that his delegation reserved its position pending discussion in the First Committee.

9. The Sub-Committee considered the proposal by the delegation of Mexico concerning the treatment of migrant workers and concluded that particular situations of the sort referred to in the discussion of the amendment should be the subject of special agreements and could not appropriately be included in the charter of an international trade organization. Reference was made also to the work being done by the International Labour Organization and particularly its Permanent Migration Committee on the general question of the treatment of migrant workers. The

representative of the delegation of Mexico reserved the right of his delegation to raise the question again in the full Committee.

10. Concerning the proposal by the delegation of Denmark relating to the initiative of the Organization in the event of Members experiencing balance-of-payments difficulties, the SubCommittee was of the view that, even if the particular case were not of sufficient urgency to come under paragraph 2 of Article 6 [5], the Member would be permitted under Articles 89 and 90 [93-95] to make representations to other Members and to the Organization and that if such representations were made to the Organization it was already empowered under the present text of the Charter to consult with, and make recommendations to, any or all Members. Accordingly the Sub-Committee felt that the inclusion of a special reference to the initiative of the Organization in connection with this Article was not required and that the insertion of such a reference might appear to cast doubt on the Organization's right of initiative in connection with other Articles if that right were not also specifically mentioned in such cases.

II.

The Sub-Committee discussed the proposal of the delegation of Peru regarding the disposal of surpluses during periods of widespread balance-of-payments difficulties. It was generally agreed that this problem related closely to the provisions of Chapter VI and that the courses of action contemplated by the representative of Peru were already provided for, so far as feasible, in Article 55 [58] (and the other Articles of Chapter VI) and Article 69 [72]. Accordingly the Sub-committee decided not to recommend the inclusion of any provision on this subject in Chapter II. The representative of Peru indicated that his delegation reserved its position pending discussion in the full Committee.

12. The Sub-Committee discussed at some length the proposals by the delegation of Norway concerning price stabilization and the prevention of inflationary developments. The SubCommittee was of the opinion that rather than consider the need for a modification in the Chapter at the present time it would be preferable to await the examination of the various Articles which relate to measures available to governments pursuing a policy of price stabilization, such as Articles 18, 20, 25-29 [25-28] and 43 [45], reserving the right of the delegation of Norway to raise the question again after those Articles had been examined by the appropriate Committees.

REPORT OF SUB-COMMITTEE C OF THE FIRST COMMITTEE: RESOLUTION ON EMPLOYMENT1

As authorized by the First Committee at its ninth meeting, 20 December 1947, the Chairman of the Committee appointed a Sub-Committee to consider whether or not a resolution was required and, if so, to recommend a text for such a resolution in the light of the draft prepared by the First Session of the Preparatory Committee and any further proposals which might be received from individual delegations. The Sub-Committee was instructed to take account also of the new text of Chapter II and of the information reported in a document reporting on activities of the United Nations and Specialized Agencies in the field of employment 2.

Representatives of the following delegations comprised the Sub-Committee: Australia, Belgium, Brazil, France, Italy, Lebanon, Mexico, Pakistan, Poland, El Salvador, Sweden, the United Kingdom and the United States of America.

Mr. J. H. G. PIERSON (United States of America) was elected Chairman.

After some discussion the Sub-Committee agreed that it would be appropriate and desirable to recommend that the Conference adopt a resolution relating to employment.

The Sub-Committee concluded that it would not be desirable to reiterate the text of the draft resolution prepared by the First Session of the Preparatory Committee since that resolution had already been mentioned in a resolution of the Economic and Social Council and, at least in part, had been included in instructions to the Sub-Commission on Employment and Economic Stability. It was felt, however, that it would be useful to affirm in the present text the interest of the Conference in all four of the measures dealt with in the draft resolution of the Preparatory Committee.

In the preparation of a text the Sub-Committee examined proposals submitted by the delegations of Australia, Brazil, Denmark, Italy, Mexico and Poland, and an informal draft put forward by the Chairman of the Sub-Committee. The Sub-Committee also took account of suggestions presented orally by the representatives of Czechoslovakia, France, Lebanon and Pakistan.

1 E/CONF.2/C.1/17.

•E/CONF.2/5.

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The Sub-Committee appointed a Drafting Group, comprising representatives of the delegations of Australia, Mexico and the United Kingdom, which met under the chairmanship of Miss N. K. FISHER (United Kingdom) and prepared a text which was subsequently considered and modified by the full Sub-Committee.

The Sub-Committee held four meetings and reached agreement on a text which it recommended to the First Committee for approval.

II. REPORTS RELATING TO THE

SECOND COMMITTEE

ECONOMIC DEVELOPMENT

The Report of the Second Committee as approved by that Committee and by the Conference indicated in detail with respect to each Sub-Committee the changes which the Committee considered necessary in the reports which had been submitted by the Sub-Committees, but did not reproduce the texts of the SubCommittees' reports. Since the texts of the Sub-Committees' reports, with the changes indicated in the Committee's Report, had been approved by the Committee it has been considered desirable and appropriate, particularly for reasons of convenience, to insert the various Sub-Committee reports in the Committee Report, indicating with square brackets and footnotes the changes which the Committee made in approving these reports.

REPORT OF THE SECOND COMMITTEE:

ECONOMIC DEVELOPMENT 1

I. The Second Committee was responsible for the examination of the Geneva draft text of Chapter III on "Economic Development" together with proposals submitted by delegations relating to the subject matter of the Chapter.

2. Mr. Ramon BETETA (Mexico) was elected Chairman at the first meeting of the Committee and Mr. Emilio ABELLO (Philippines) was elected Vice-Chairman at the second meeting. On the departure of Mr. Abello, Mr. Jose GARRIDO TORRES (Brazil) was elected Vice-Chairman at the twenty-first meeting.

3. The Committee held twenty-six meetings and succeeded in solving all the issues before it. Mr. Beteta presided at all meetings except the seventh to rineteenth inclusive, presided over by Mr. Abello and the twenty-second presided over by Mr. Garrido Torres.

1 E/CONF.2/69 and Corr 1.