ABSTRACT
Most such expedients are the subject of international rules, under the I M F or G A T T , or of more restricted agreements like the E E C , E F T A , and the O E C D . Curiously, manufacturing countries fear export subsidies more than import restrictions. Export subsidies are anathema, and the rules are not broken, although the letter of the law may be strained. The international rules, which permit import restrictions when there are serious balance of payments deficits, curiously again, favour quotas rather than use of the price mechanism. Thus the U K ' S measures of October 1964 were in defiance of the G A T T and E F T A . It is an historical accident-for aid was unim portant when I M F and G A T T rules were drawn up-that export pro motion by means of aid-tying is not the subject of regulation. While 'dumping' is regarded with horror, countries show no effective con cern with competitive export promotion by 'aid-tying', even when the 'aid' consists of expensive export-credits. Nor does the I M F show concern over the fact that much aid money is, in effect, in convertible.
