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Indeed, the ultimate traces of the security exception clause are found in the general exceptions clause contained in the US proposal, under the Commercial Policy chap- ter, which resembles the exception provision in the US' reciprocal trade agreements in the 1930s.4 The major contents related to the current security exceptions had de- veloped in the 'Suggested Charter' for an ITO of the United Nations, prepared by the USA in September 1946, but the parallel structure of the General Exceptions clause remained intact throughout the London draft (Article 32)5 and the New York draft (Article 37).6 The draft clause of the Suggested Charter is as follows:
Nonetheless, as the components of the Security Exceptions clause were suggested to be established as a separate provision, descriptive elaborations of the subpara- graphs from the previous drafts were significantly rearranged with particular consid- erations for each political and military concern.
Without clear jurisdictional div- ision and clarification of the provision, the GATT Security Exceptions clause has lived on with its embedded ambiguity that gives Members an open-ended discretion and a potential power to abuse it.
The Council concluded that the import ban on footwear, which was claimed to be military strategic goods by Sweden, was an example of abuse and misuse of the GATT security exceptions.41 Upholding the founding fathers' initial aim to balance the rights and obligations of the world trading regime, the Council clearly noted that there were cases not eligible for the application of the security ex- ceptions, despite its all-embracing and overarching power over the other provisions of the Agreement.42 The Council also clarified that the security exception clause was to be applicable only in rare and imminent circumstances and it was the last resort for the Members to ensure its policy sphere in case of international emergency.
The original drafters of the ITO Charter expressed their concern in respect of the potential abuse of the security exception clause for commercial purposes,61 but still neglected to address the issue of power imbalance.
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