246 Australian Delegation, United Nations, to Department of External Affairs

Cablegram UN757, NEW YORK, 1 November 1949, 5.22 p.m.

IMMEDIATE

Full employment.

1. During the debate underdeveloped countries have continued to insist on special problems of underemployment in their countries. Many amendments to this end were introduced which were likely to distort the resolution.[1] However, we have now reached agreement with India and Pakistan on additional paragraphs referring to the underemployment in underdeveloped countries and agriculture and asking ECOSOC to study this.

2. The paragraph on GATT etc. has also drawn strong criticism and attempts have been made to delete it. Chile has proposed amendment which would seem to preserve our position and we will therefore accept it unless you instruct to contrary by tomorrow. The paragraph in the form proposed by us would be defeated as Soviet group and Latin Americans will vote against it. Chile would substitute the following 'that the objectives of internal agreements for the furtherance of the production and consumption of and expansion of international trade in goods on as free as possible a basis would be seriously impaired by failure to take or by delay in taking action designed to maintain full and productive employment especially in those countries which have an important share in world trade'.[2]

3. Voting will probably occur tomorrow.

[1] See Document 241.

[2] External Affairs replied that it had no objection to the amendment if necessary to preserve the principle contained in the original paragraph.

[AA : A1838, 852/11/6]