1. The Forty-Ninth Session of the Council was held in Rome from 30 October to 3 November 1967, under the Chairmanship of M. Gemayel.
2. I. Eckersten (Sweden) and Dato Syed Hashim bin Abdullah (Malaysia) were elected First Vice-Chairman and Second Vice-Chairman respectively.
3. The Agenda of the Session as adopted is set out in Appendix A to this Report.
4. The Report of the Forty-Second Session of the Committee on Commodity Problems (CL 49/2) was introduced by the acting Chairman of the Committee, Miss I. Haas. The Committee had drawn the attention of the Council to the main findings of the Secretariat Study “Agricultural Commodities - Projections for 1975 and 1985”; to its discussion on trade issues and policies in relation to the IWP and the need to provide for adequate consultations with the CCP on the preliminary version of the Plan before its submission to the Second World Food Congress; and to its discussion on the interagency study on multilateral food aid. The Council expressed appreciation of the work done by the Committee and agreed that its report would be helpful to the Conference.
5. The Council shared the satisfaction of the Committee with the improvements which the Secretariat had been able, in the limited time available, to introduce in the revised version of the Projections study, now published as document CCP 67/3 (Rev.). The Council appreciated the usefulness of the clear and concise presentation made by the Committee of the major findings of the study, which had been summarized by the Committee under six headings namely, those concerning the food situation, trade in general, trade outlook for tropical commodities, for commodities produced in temperate and tropical zones, for temperate zone commodities, and finally for agricultural raw materials and derived manufactures. Some members pointed out that these findings emphasized once again the seriousness of the world food problems and of international commodity problems and their impact on the economic development of developing countries. They emphasized that the prospective picture of international trade and of the agricultural export possibilities of developing countries was unfavourable, and called for adequate measures to deal with the problems of export earnings of developing countries.
6. The hope was expressed that the CCP in its further work would take account of the Charter resulting from the Algiers Conference of 77 countries, which was in some respect a supplement to the findings of the FAO Projections. The Council agreed that the co-operation between FAO and UNCTAD was growing most satisfactorily and that in view of the growing activities of FAO and UNCTAD in the commodity field, this co-operation should be continued as closely as possible. It noted with appreciation that FAO would be submitting a number of documents to the Second Session of the UN Conference on Trade and Development, to be held in New Delhi in February-March 1968, and looked forward to real advances in the commodity field at that Conference.
7. The importance of integrating the Commodity Projections into the Indicative World Plan was stressed by some members. The Council noted that, as envisaged by the CCP, it was the intention of the Secretariat to assess the impact of alternative policies in the high income countries on the world trade prospects for commodities of interest to developing countries, in the course of the work on the Indicative World Plan. In this connection some members urged that the Secretariat should try to adopt an approach which was not based on the assumption of unchanged policies and prices. Prices in consuming countries, these members pointed out, were affected by import duties and internal taxes, the removal of which would contribute to an expansion of consumption and imports.
8. The Council noted the concern expressed in the Committee that either the Council or the CCP should have the opportunity to review carefully the documents being presented to the Second World Food Congress, and that the provisional studies, as laid before the Congress, should take account of the comments of the Council or the CCP. According to the timetable as known at the time of the CCP Session, it would not be possible to do this, since the provisional version of the IWP was scheduled for distribution in mid-1968 for presentation to the Second World Food Congress, scheduled for September 1968. If member governments of the CCP were to have adequate time to study the documents, the CCP could hardly meet until August/September 1968. While this would allow the comments of the CCP to be distributed to governments and to members of the World Food Congress before the Congress assembled, there would be no opportunity for revision of the provisional IWP document itself, where necessary, in the light of the CCP's comments.
9. The Director-General informed the Council that he had given careful consideration to the concern expressed in the Committee, and he wished to meet as far as possible the objections which some Member Governments saw in the present timetable. He, therefore, indicated that since the place of the World Food Congress had not yet been determined, it would be possible to postpone the convening of the Congress until some time in early 1969. This would enable comments and proposals on the provisional IWP documents available in mid-1968, emanating from the Regional Conferences, the CCP, and the Council, to be taken into account, to the extent possible, in revisions before distribution to the World Food Congress. He explained that the World Food Congress could not be scheduled late in 1969, since the Organization would be preoccupied with the preparations for the Fifteenth FAO Conference, which would be held in the last quarter of that year.
10. The Director-General felt that only a limited amount of revision would be possible before the papers were distributed to the World Food Congress, since even the revised timetable would not allow for major reworking of the provisional IWP. He hoped that governments would give the Director-General room for discretion to revise the document to the extent and in the directions possible in the time available. He also stressed that the IWP would always be in need of refinement and improvement. It was not reasonable to wait until the IWP was perfect before it could be distributed to governments. The world was facing a food and agricultural crisis, affecting the developing countries particularly, and it was essential that no time be lost in presenting even a preliminary analysis of the problems and of the development policies that were needed. The Director-General stated that he fully shared the views expressed that there should be the fullest consultation between the Secretariat and member governments in the work on the IWP, and arrangements had been made for this. However, it was essential to have a basis for meaningful consultations. This was another reason why he thought it was highly desirable that the provisional documents, although incomplete and imperfect in some respects, be prepared and presented as soon as possible.
11. The Council agreed that the Director General's proposal to postpone the Second World Food Congress to early 1969 was in many respects a constructive one. However, some members still felt that from the point of view of enabling the comments of the Council or of the CCP to be fully taken into account on the IWP documents themselves, undue emphasis should not be placed on holding the Second World Food Congress in early 1969. In this connection, the Council reaffirmed the views expressed in paragraphs 12–14 of its Forty-Eighth Session Report.
12. The Council noted the discussion which had taken place in the CCP, on the basis of the Director-General's revised Progress Report on the Interagency Study on Multilateral Food Aid, and the report of ECOSOC on its examination in mid-1967 of the Secretary-General's Progress Report which FAO had helped to prepare. The Committee had emphasized two specific aspects, namely the need for securing more efficient co-ordination between various food aid activities, and on further study of the institutional aspects of expanded multilateral food aid. The Committee had stressed that FAO had some important functions to perform in the context of co-ordination. It had also suggested that in the continuation of the Interagency Study, the Director-General and the Secretary-General of the United Nations should attempt to narrow down the choice of institutional alternatives for expanded multilateral food aid, building on the views expressed in the ECOSOC and the Inter-Governmental Committee of the World Food Program, which placed emphasis on the utilization of existing agencies.
13. Some members drew attention to the problem of surpluses accumulating in certain developing countries, and advocated the adoption of international measures for financing the transfer of these supplies to other developing countries with import deficits.
14. The Chairman of the Intergovernmental Ad Hoc Committee presented the Report of the Committee (CL 49/3) on the Study on Food Production Resources in Agricultural Development (C 67/41).
15. The Council recognized the importance and value of the study, and considered that it had convincingly demonstrated the necessity to expand the availability and utilization of production resources in developing countries, if an immediate and substantial increase in their food production was to be achieved. Some countries thought that greater emphasis should have been placed in the study on those economic and institutional factors which govern the effective utilization of production resources. Particular attention was drawn to the importance of adequate research and extension services, satisfactory tenure conditions, efficient marketing and distribution systems, and effective price stabilization schemes to maintain producer incentives. It was considered that the maximum impact would be obtained when policies and measures in all these fields were implemented in a co-ordinated and integrated manner, at the same time as supplies of these requisites are increased. It was noted that during the last two years the introduction and success of high-yielding varieties of seeds in several developing countries was not only encouraging farming practices, but had also increased the demand for chemical fertilizers and other inputs at a rate much beyond that visualized in the Study.
16. The Council noted that aid in the form of production resources would continue to be needed if the gap between the rising demand and the domestic manufacture and commercial import of these requisites were to be filled. There was complete agreement that there should be an increase in the supplies of production resources provided as aid, and that such assistance should constitute a larger proportion of the total flow of aid, in order to maximize the developmental effect of aid as a whole.
17. The Council recognized that most of such aid would be provided under bilateral aid programs and that the magnitude of bilateral assistance, which would have to be negotiated between individual donor and recipient countries, would depend on the extent to which conditions for their effective use were established in the various countries. It was considered that an intensification of the activities of multilateral organizations, particularly FAO which had a special competence and responsibility in this field, could contribute to the stimulation of such bilateral aid. The Council was also of the opinion that there was considerable scope for multilateral organizations to promote directly an increase in the availability and effective use of production resources through existing programs. Insofar as a multilateral approach was concerned, the members from developing countries strongly advocated the establishment of a new multilateral FAO fund since, according to them, there was necessity for a program specifically concerned with inputs for agricultural production. The members representing developed countries did not support the creation of a new fund but rather supported increased emphasis on food production resources through all appropriate multilateral agencies, through increased national and bilateral efforts, and through the encouragement of the efforts of private enterprise.
18. It was noted that wherever feasible, it was important to encourage the domestic production of food production resources in the developing countries.
19. The Council recommended the following draft resolution for adoption by the Conference:
DRAFT RESOLUTION FOR THE CONFERENCE
Food Production Resources
Considering that the massive increase required in food availability must in large measure come from substantial expansion in production within food deficient countries, which can most readily be achieved through the intensive use of material inputs and other measures leading to increased yields,
Welcomes the attention drawn to this question by the Director-General's proposals for a Food Production Resources Program and the resulting study (C 67/41) prepared under the guidance of the Ad Hoc Committee,
Considers that the study is a valuable contribution to the analysis of the problems involved in increasing production, availability and effective utilization of food production resources in developing countries,
Recognizes that FAO is the international organization specifically enjoined by its Constitution to secure improvement in methods of agricultural production, is equipped to provide technical guidance and supervision, to draw attention to requirements, to assist in the identification and formulation of sound projects, to participate in the co-ordination of production resources aid, and to raise the absorptive capacity of the developing countries to use these production resources effectively,
Recommends that it is urgently desirable to take all appropriate measures to increase the flow to and utilization in developing countries of food production resources,
developing countries to re-examine their national development plans with a view to intensifying the use of food production resources and creating conditions in which additional inputs can be most effectively applied while maintaining stability in farm prices,
Member Governments to consider in close consultation with donor countries the greater use of bilateral aid for the provision of food production resources,
existing multilateral agencies to consider ways and means of promoting the greater use of multilateral aid to provide food production resources,
the Director-General to intensify FAO's efforts to secure improvements in methods of agricultural production, in co-operation with other multilateral organizations and where requested with bilateral donors, and to provide the necessary technical guidance and supervision to ensure that these requisites are used effectively,
the developed countries to consider how they can immediately increase their contribution in the field of food production resources and to examine further the question of the establishment of a multilateral program such as the one suggested in the study.
20. The Council had before it a summary of action taken since its Forty-Eighth Session in implementation of UN Resolution A/Res/2172 (XXI). Good progress was being made with a comprehensive survey of activities in marine science and technology under arrangements made by a group of experts appointed in accordance with the Resolution, to which the FAO Committee on Fisheries and the Director-General had nominated members. Advice regarding scientific aspects of the implementation of the Resolution had been requested from a Joint Working Group (JWG) of scientific advisory bodies of FAO, the Intergovernmental Oceanographic Commission (IOC) of Unesco and WMO and the recommendations of the JWG were before the Council. Copies of the full report of the JWG which had been issued recently were available.
21. The Council was informed orally of the recent examination of the JWG report by the IOC, in which representatives of FAO had closely participated, and of preliminary comments formulated by the Director-General in this connection. The IOC had, a few days previously, adopted a resolution embodying its views and conclusions regarding the recommendations of the JWG and these, in the Director-General's opinion, were substantially in line with FAO's interests and policies.
22. Regarding a recommendation by the JWG concerning non-governmental scientific advice to FAO in the field of fisheries, with which the IOC had not dealt, the Council was informed that the Director-General considered that no change seemed advisable in the absence of a suitable organization of scientists, and before future arrangements for international collaboration were determined. Believing, however, that it would be desirable whenever possible to seek assistance from qualified organizations, equipped to carry out such work, under satisfactory conditions, and thereby relieve FAO, the Council expressed the desire to be kept informed of any such collaboration opportunities in the future.
23. A sub-section of the JWG report dealt with living resources of the sea and was of particular concern to FAO. The Council noted that the Director-General was taking action in response to a number of suggestions in that sub-section but had pointed out with reference to questions relating to jurisdictional arrangements on which the JWG had touched, that Member Nations of FAO had not in the past considered that legal questions relating to the sea should be taken up in FAO or its subsidiary bodies.
24. The Council further noted that the Director-General agreed with the JWG in the view that constitutional and procedural factors limiting joint action between agencies ought to be examined and if possible, modified, and that the Director-General had suggested the idea of a world-wide indicative program for science and technology relating to the oceans as a means of achieving the aims of the UN Resolution.
25. The Council expressed its appreciation of the work of the JWG and of its report which it considered would form a valuable basis for further discussions. It found itself in general agreement with the views expressed by the IOC in regard to the report. The Council had considerable doubt about the idea of a central intergovernmental organization to deal with all aspects of ocean investigations and the uses of the sea mentioned in Recommendation 9 of the JWG, and noted with agreement the conclusion of the IOC in this connection which was in favor of deferring consideration of this idea until alternative arrangements had been examined.
26. The Council re-emphasized the important role that FAO and its Committee on Fisheries must play in the implementation of UN Resolution 2172, and the great importance of its subject matter to the work of FAO in fisheries.
27. The discussion on this item was opened by the Chairmen of the Finance and Program Committees who presented the reports of their respective Committees on the question of the Review of the Organization's General Structure. Both Chairmen paid compliments to the task performed by the Review Team and to the comments thereon by the Director-General. The Committees had found that the study of the structure of the Organization had not yet been carried far enough to make possible the immediate implementation of an overall reorganizational plan, but that considerably more study was necessary before such a plan could be worked out. Nevertheless, the Committees had expressed the view that there were certain interim measures which could be adopted in the 1968–69 biennium without prejudice to an overall final pattern of organization. The feelings of the two Committees were reflected in their respective resolutions which were before the Council.
28. The Council concurred with the Program and Finance Committees regarding the excellent work carried out by the Review Team and the value of the Director-General's comments. It also agreed that, while it was premature to attempt to build up a full fledged reorganizational plan at this Council session as well as at the forthcoming session of the Conference, there were certain measures which could be taken in the 1968/69 biennium, thus avoiding the postponement of the entire issue to the Fifteenth Session of the Conference and giving time for the preparation of the complete re-organizational plan. These measures should, however, be of such a nature that they would not interfere with the final pattern of reorganization which would eventually be submitted to Council and Conference.
29. The Council paid particular attention to certain issues involved. The first of these was the necessity to strengthen the FAO's representation at the country level, and it agreed that measures should be taken during the 1968/69 biennium to increase the number of Country Representatives both through the agreement which the Director-General had entered with the UNDP for the purpose of establishing posts of senior agricultural advisers as well as, to the extent possible, some redeployment of existing staff.
30. With regard to the Regional Offices, some members agreed with the views of the Review Team that they should be abolished in favour of a strong network of Country Representatives. Other members, however, felt that Regional Offices had a very important role to play provided they responded to the realities of particular conditions of each region. These members considered that the present Regional Offices had not been able to reach their maximum efficiency nor to develop their full potential due, to a large extent, to a defective structure and to the fact that in some cases their organization was not well adapted to the special circumstances or conditions in each region. This solution did not have necessarily to be the same for each region, and a pragmatic approach was necessary according to the prevailing characteristics of each region. Finally, the Council felt that a decision on this question was premature, and that it was necessary to study this matter further.
31. Some members felt that the proposals of the Director-General regarding the establishment of task forces, based on outposted Regional Officers, for the study and preparation of integrated projects deserved to be tested.
32. The Council was of the view that certain questions which had emerged during the discussion could be useful to the Conference, the Director-General and to the Ad Hoc Committee on Organization in discussing an overall reorganizational plan, particularly those which had a bearing on the objectives which the further study of the structure should aim at. These included the following:
What measures should be adopted to improve FAO's efficiency as a decisive instrument of development.
The way which the planning activities of FAO already started with the Indicative World Plan could best be geared to the enlarged and more effective operational functions of the Organization, and more particularly how a more precise focus could be given to the plan and to such functions.
The manner in which FAO's technical competence could be channelled better towards operational activities, thus fulfilling the aspiration of countries as regards assistance for the execution of urgent programs, without impairing flexibility of operations and effective management, and increasing at the same time the opportunities for significant technical advance.
How could FAO's economic activities be strengthened and brought to bear more effectively on FAO's field work, and how could greater consideration be given in such work to the institutional and organizational aspects.
The ways in which a switch could be effected towards a still larger and more effectively conceived number of multi-disciplinary projects, and the possibility of operating these projects in a better integrated and more centralized manner.
As a consequence of the above, how could the problem of the Regional structure be approached pragmatically, adapting it to the different situations prevailing in the various regions.
How could FAO contribute to a better co-ordination of international collaboration to accelerate the process of development, assisting in an integrated manner in the solution of the vital aspects of a global development strategy and a better and closer co-operation among the agencies of the United Nations family, and in so doing, take maximum advantage of the opportunities which the ever important bilateral programs and private efforts were continuously presenting.
33. The Council devoted particular attention to the procedural matters involved in this issue in order to ensure that certain measures could be implemented immediately, and that the Fifteenth Session of the Conference could have before it not only an overall reorganizational plan but also a budget based on such a plan.
34. It further agreed with the view of the Finance Committee that the study of the organizational plan should be carried out by the Director-General in consultation with an Ad Hoc Committee on Organization of the Council, which should be representative of the seven FAO regions. The Council also concurred with the view of the Finance Committee that the reorganizational plan should be submitted to the 1968 session of the Council, which would be authorized to review and approve this plan so that it could be used as the basis of the presentation of the Program of Work and Budget for 1970/71 to the Fifteenth Session of the Conference.
35. The Council recommended the following draft resolution for adoption by the Conference:
DRAFT RESOLUTION FOR THE CONFERENCE
General Structure of the Food and Agriculture Organization
Recognizing that the world is faced with a growing crisis in its efforts to achieve and maintain a reasonable balance between a rapidly expanding population and the food supply,
Recognizing, also, that substantial improvements must be brought about in agricultural production, processing, distribution and utilization if the needs of the developing countries are to be adequately met,
Recognizing, also, the necessity for organizations of the United Nations family in the field of economic and social co-operation to adapt their activities, and consequently their structures, to the requirements of co-ordinated and integrated action towards development, and in the case of FAO, also to new programs in particular those which may result from the Indicative World Plan,
Expresses its appreciation to the Review Team and to the Director-General for their report and recommendations (document CL 49/16),
Concurs in the need for organizational improvements in FAO so that it can be better able to meet its increasing responsibilities to the peoples of the world in the field of food and agriculture, particularly in the developing countries, and so that the Organization can continue to give increasingly efficient and practical assistance with qualified personnel having full understanding of the aspirations and the realities of those countries, as well as knowledge and competence in their respective fields,
Decides to move forward with the appointment of full-time Country Representatives, chiefly financed from the UNDP, with overall responsibility for FAO programs within their respective countries,
Requests the Director-General within the approved budget for the biennium 1968/69 to proceed as rapidly as possible to expand the corps of Country Representatives in co-operation with the UNDP and to strengthen their effectiveness and responsibility in developing and carrying out the field programs in their respective countries,
Requests the Council to consult with the Director-General on the organizational adjustments to be made during the biennium 1968/69 and to be proposed for the biennium 1970/71; and for this purpose to appoint an Ad Hoc Committee on Organization to advise the Council in consultation with the Director-General on the implementation of this resolution. This Ad Hoc Committee should be representative of the seven FAO regions, and the members should consist of individuals who, where possible, normally serve as senior members of the delegations to FAO,
Requests the Director-General in consultation with the Ad Hoc Committee on Organization to take appropriate interim steps during the 1968/69 biennium within the approved level of the budget for that biennium to make organizational adjustments including, if necessary, a modest redeployment of staff:
aimed at a more effective system of communication between the field and headquarters so that decisions can be made more expeditiously and queries from the field can be handled more quickly,
in order that the operations of FAO in the field may be strengthened to provide more effective programming and managerial attention to country and regional projects and programs sponsored by FAO, including projects financed from UNDP and other sources, and
to consolidate general administrative and support functions, and to improve personnel administration.
Further requests the Director-General to develop in consultation with the Ad Hoc Committee on Organization a detailed reorganization plan for FAO for submission to the 1968 Session of the Council for its consideration,
Authorizes the Council to review and approve a detailed reorganization plan to be used as the basis of presentation of the Program of Work and Budget for 1970/71,
Further requests the Director-General to report to the Fifteenth Session of the Conference on the organizational improvements made during the biennium 1968/69 and to present his budget for the biennium 1970/71 based upon the reorganization plan approved by the Council at its 1968 Session.
36. The Council noted that the Fifth Congress of the World Meteorological Organization, having noted the views expressed by the Director-General of FAO in his statement before it, on the need for increased meteorological support in the world campaign against hunger, requested the Secretary-General and the Executive Committee of WMO to take the following action:
“(3) to invite other international organizations (particularly FAO, UNDP and Unesco) to join with WMO in a Joint Panel to develop and implement ‘An Agrometeorological Program in Aid of Food Production’ (WMO Resolution Cg V-26).”
37. The Council also noted that this proposal by WMO had been examined by the Program Committee at its Thirteenth Session (CL 49/5, paras. 67–69). The Committee had agreed to the desirability of participation by FAO in such an agrometeorological program in aid of food production. However, to avoid confusion, the Committee had suggested that the proposed panel should be called an “Interagency Co-ordinating Group,” and this title had been agreed by the other UN Agencies concerned.
38. The Council, considering that the budget needed to cover this activity, including consultants' service, was modest and could be found within the Regular Program Budget, approved the participation by the Organization in this inter-agency working group.
39. The Council recalled that at its Forty-Seventh Session (October 1966), the Director-General had reported that negotiations were under way with the Organization of African Unity (OAU) regarding the conclusion of a formal agreement establishing relations between FAO and OAU, and noted with satisfaction that these negotiations had led to agreement on all but one article of the proposed text.
40. The Council further noted that the Committee on Constitutional and Legal Matters (CCLM), the Program Committee and the Finance Committee had expressed their concurrence regarding the various provisions of the proposed agreement, with the exception of the terms of Article VI, still the subject of negotiations between FAO and OAU. The Council hoped that this question would be resolved in the near future, in order that relations between FAO and OAU might be placed on a formal basis as soon as possible.
41. The Council was informed that discussions were being held with the Inter-American Development Bank (IDB) with a view to concluding more systematic arrangements than those in force under the Agreement entered into in 1965, and that negotiations had been going on with the African Development Bank and the Asian Development Bank, with the objective of drawing up appropriate instruments setting forth the scope, nature, and financing arrangements for co-operative activities to be undertaken with each of these organizations. Some discussions were also going on with the Central American Bank for Integration (CABEI), looking to ways in which FAO might best help. The Council was further informed that the Program and Finance Committees had been appraised of these developments and that subsequently the Director-General of FAO had reached agreement with the President of the African Development Bank on a Memorandum of Understanding regarding co-operation between the African Development Bank and FAO (document CL 49/17), and with the President of the Asian Development Bank on a Draft Note on Procedures for Ad Hoc Co-operative Action between the Asian Development Bank and FAO (document CL 49/18).
42. The Council noted that appropriate provisions existed in the budget for co-operative activities with the area banks, covering also the cost of necessary Headquarters arrangements for the supervision and co-ordination of these activities as well as between these activities and those of the FAO/IBRD Co-operative Program. The Council further noted that the scope and methods of co-operation envisaged in the Memorandum of Understanding with the African Development Bank and in the Draft Note on Procedures for Ad Hoc Co-operative Action between the Asian Development Bank and FAO were along the same general lines as those in force with the IBRD, but that the financial and staff arrangements were adapted to suit the requirements and resources of the respective banks. There were expressions of strong support of these agreements and the desirability of co-operative arrangements with all area banks, particularly in view of the possibility of building up an investment pipeline out of FAO's work on UNDP and other field programs; emphasis was also placed on the need for immediate arrangements to co-ordinate at one point in FAO the various activities connected with these co-operative agreements as well as with the International Bank, which the Director-General had already envisaged in his Program of Work and Budget.
43. The Council took note of the negotiations going on with different area banks and, stressing the desirability of close co-operation with them, adopted the following resolution in respect of the draft arrangements with the African and the Asian Development Banks:
ARRANGEMENTS WITH THE AFRICAN DEVELOPMENT BANK AND THE ASIAN DEVELOPMENT BANK
Considering the desirability of close co-operation between the Food and Agriculture Organization of the United Nations and the African Development Bank and the Asian Development Bank on matters of common concern,
Having examined the terms of the proposed draft Memorandum of Understanding between FAO and the African Development Bank and the Draft Note on Procedures for Ad Hoc Co-operative Action between the Asian Development Bank and FAO, which had been negotiated between the Director-General of FAO and the Presidents of the respective Banks,
Approves the Memorandum of Understanding between the African Development Bank and FAO and the Note on Procedures for Ad Hoc Co-operative Action between the Asian Development Bank and FAO, as set out in Appendices D and E respectively to the present Report, for signature by the Director-General, it being understood that the Memorandum of Understanding will come into force upon such signature and that of the President of the African Development Bank, and the Note on Procedures for Ad Hoc Co-operative Action between the Asian Development Bank and FAO upon signature by the Director-General and the President of the Asian Development Bank, but subject in both cases as far as FAO is concerned, to subsequent confirmation by the Conference in accordance with Rule XXIV-4(c) of the General Rules of the Organization.
44. The Forty-Eighth Session of the Council requested the Committee on Constitutional and Legal Matters (CCLM) to consider the question of procedures which would make it possible to associate Member Nations with the Director-General in the selection, or in the study of conditions of participation, of international nongovernmental organizations which do not have any status with FAO, in sessions or meetings convened by FAO. The recommendations of CCLM, contained in document CL 49/7, paragraphs 31–34, were submitted to the Council for its consideration.
45. The Council endorsed the procedure proposed by CCLM whereby the Director-General would inform the Council in advance, whenever possible, of the names of the international nongovernmental organizations without status with FAO which he intended to invite on an ad hoc basis to specific FAO meetings. When such prior notification to the Council was impracticable, the Director-General would invite such international nongovernmental organizations to attend, and report this action ex post facto to the Council. In each case, the Director-General would indicate the circumstances that led him to issue such invitations.
46. At its Forty-Eighth Session the Council had agreed that the proposal to introduce Arabic interpretation in the FAO Conferences as well as the Near East Regional and Technical Conferences, as from the Ninth FAO Regional Conference and the Fifteenth Session of the FAO Conference, should be referred to the Conference at its Fourteenth Session (C 67/44). At its Forty-Ninth Session, the Council, in giving preliminary consideration to the question of the use of other languages on the basis of a report prepared by an independent consultant, also returned to the question of Arabic. The Director-General had submitted the following five specific proposals (CL 49/8):
That Arabic be adopted as a limited working language in terms such as proposed by the Eighth Regional Conference for the Near East in 1967. 1
That facilities for interpretation from and into German be provided in future at Plenary and Commission meetings of the FAO biennial Conference as also at the Plenary meetings of the Regional Conference for Europe.
That the Council should entrust the Program Committee with the task of initial and periodic review of the Organization's language policy and practice, including all future proposals for changes or additions in the light of the criteria suggested in paragraph 5.5 of the consultant's report. The review should specifically include the definition of the concept of ‘working language’ for various purposes and the classification of conferences and sessions from the point of view of the use of languages.
That the Council should endorse the proposal that, within available resources, the Organization should be in a position to award token subsidies to encourage the publication of suitably selected FAO works in any language.
That the Council should authorize the issue, within available resources, of some public information material in selected non-working languages, including Arabic and German."
1 “Requests the Director-General to present to the Fourteenth Session of the FAO Conference the introduction of the use of Arabic for interpretation in the General Conference as well as the Near East Regional and technical conferences as from the Ninth FAO Regional Conference and the Fifteenth Conference Session.”
47. In the Council preliminary discussion of this matter, practically unanimous support was expressed in favour of the limited adoption of Arabic in the way proposed by the Director-General. There was some opposition and considerable support for the second proposal, relating to German, particularly in the light of a communication received from the Government of the Federal Republic of Germany, offering to make a substantial contribution to cover the additional costs of interpretation which would arise from the use of German.
48. In the case of Arabic, it was pointed out that it is the language used by 14 present Member Governments of FAO, which was the largest group of users of any one language apart from the present working languages, and that services were already being provided in that language by Unesco and the ILO.
49. The justification for the use of German was based on somewhat different criteria, i.e., the importance of the language for communication in technical, scientific and economic matters, and its wide audience beyond the frontiers of German-speaking countries. These criteria were of direct application in FAO's field of work.
50. On the other hand, three members drew attention to the need for caution, pointing out that adoption of Arabic and German for certain purposes could lead to claims on behalf of other languages, and that further extensions of the language services required could have an adverse effect on the work of the Organization. These members expressed concern about the practical and financial effects of such extensions and felt that the additional costs should be weighed against the fact that funds would be diverted away from development efforts, which were the main purpose of the FAO programs.
51. In transmitting the Director-General's proposals to the Conference for decision, together with the consultant's report, the Council therefore draws the attention of the Conference to the following points:
the practically unanimous support expressed in favour of the adoption of Arabic; some opposition but considerable support given to German - based on the merits of the two requests,
the limited scope of these proposals,
the offer of the Government of the Federal Republic of Germany to make a substantial contribution towards the additional costs of German interpretation, and
the value of entrusting a small committee, at the policy-making level, with the task of reviewing all aspects and implications of any proposals for further extensions of the language services of the Organization: the Director-General had recommended that the Program Committee be entrusted with this responsibility.
52. The Conference at its Thirteenth Session (1965) had requested the Council to undertake over a four-year cycle the review of FAO's statutory bodies.
53. At its Forty-Seventh Session (October 1966) the Council undertook the first stage of this review, and requested the Director-General to provide the material necessary to conduct the second stage of the review at its Forty-Ninth Session (October 1967). At its Forty-Eighth Session (June 1967) the Council made some further recommendations concerning the conduct of the review.
54. In the light of the foregoing, the Director-General submitted to the Council a document containing draft criteria for the establishment of FAO commissions, committees and working parties, and the review of the achievements of the existing bodies for the four-year period 1964/67 and the relation between their activities and the activities proposed in the draft Program of Work and Budget 1968/69 (CL 49/6 and CL 49/6 - Sup. 1).
55. The Council noted that the Technical Committees of the Conference had also reviewed the activities and functions of the FAO statutory bodies related to the various disciplines covered by those Committees. The reports of the Technical Committees thereon were not available to the Council at the time of its session. Furthermore, the General Rapporteur on the Work of the Technical Committees might include in his report to Commission II of the Conference comments and recommendations in regard to the discussions and recommendations of the Technical Committees on this point.
56. Accordingly, the Council recommended that the report submitted by the Director-General to the Council (CL 49/6 and CL 49/6-Sup. 1) be first considered in Commission II, together with any recommendations on this item which the General Rapporteur might transmit to the Commission. The matter would be taken up in Commission II under Item 15 of the Provisional Agenda, “Report of the General Rapporteur on the Work of the Technical Committees of the Conference”. The Council recommended that the Chairman of Commission II subsequently forward the views and recommendations of Commission II to the Chairman of Commission III so that Commission III could take them into consideration when dealing with Item 29 of the Provisional Agenda of the Conference.
57. The Council also recommended that both Commission II and subsequently Commission III pay attention in particular to the draft criteria for the establishment of commissions, comittees and working parties which were set out in document CL 47/6.
58. The Council also noted that the report of the Committee on Constitutional and Legal Matters regarding the number and length of sessions of FAO statutory bodies (CL 49/7, paras. 14–26), including a draft resolution for the Conference, was closely linked to the review of FAO statutory bodies. In view of the program and budgetary implications of this resolution, the Council considered it desirable that it also be considered first in Commission II and Item 15, in conjunction with the review of statutory bodies, prior to being taken up in Commission III under Item 29.
59. The consequential change in the timing of the discussions in Commission III had been taken into account in the revised timetable for the Conference Session, submitted by the Council to the Conference in document C 67/LIM/15.
60. At its Fifty-First Session (1968), the Council would undertake the third stage of its four-year review of the activities and functions of the FAO statutory bodies in the light of the Conference's discussions and decisions concerning this matter.
61. The Council would be reporting again to the Conference at the Fifteenth Session (1969), when the four-year review requested by the Conference in 1965 had been completed.
62. The Council noted the explanations given by the Finance Committee in the Report of its Eighteenth Session (CL 49/14), and in particular its recommendations, after a full examination, not to propose a reduction in the financial provision for meetings in 1968/69. The Council agreed with the Finance Committee that the total provisions proposed in relation to meetings for each Division should be presented in future budget documents as clearly and comprehensively as practicable.
63. The Plant Protection Committee for the South-East Asia and Pacific Region, established in virtue of Article II of the Plant Protection Agreement for the South-East Asia and Pacific Region, considered at its Fifth Session (Canberra, 26 November – 2 December 1964) the desirability of amending the geographical scope of the Agreement as laid down in the definition of the Region contained in Article I(a) of the Agreement.
64. At its Sixth Session (Kuala Lumpur, 27 March – 3 April 1967), the Committee decided that an amendment extending the geographical scope of the Agreement was desirable, and to this end suggested a new definition of the Region. The Committee also recommended that steps be immediately taken to amend the Agreement in order to extend its regional scope.
65. In accordance with the provisions of Article IX, paragraphs 1 and 2 of the Agreement, any proposal for the amendment of the Agreement shall be communicated by the Committee to the Director-General of the Organization, and any proposed amendment thus received by the Director-General shall be presented to a session of the Council of the Organization for approval.
66. The Council, having considered the new definition of the Region embodied in the text submitted to it by the Director-General, adopted the following resolution:
AMENDMENT OF THE PLANT PROTECTION AGREEMENT FOR THE SOUTH EAST ASIA AND PACIFIC REGION
Considering that the Plant Protection Committee for the South East Asia and Pacific Region decided that an amendment to Article I(a) of the Plant Protection Agreement for the South East Asia and Pacific Region was desirable in order to extend the geographical scope of the Agreement, and that the Committee had to this end suggested a new definition of the Region.
Having examined the new definition of the Region submitted to it by the Director-General in accordance with the provisions of Article IX, paragraphs 1 and 2 of the Agreement, which definition reads as follows:
“The South East Asia and Pacific Region, hereinafter called “The Region”, comprises all territories in South East Asia east of the western border of Pakistan and south of the Himalayas, the southern border of China and west of the eastern coast of Viet-Nam, together with all those territories in the Pacific Ocean, the South China Sea and the Indian Ocean situated wholly or partly in the area bounded by longitude 100° East, latitude 45° South, longitude 130° West, latitude 38° North to the point of its intersection with the Western coast of the Republic of Korea, and from that point a straight line to Taipei, and thence a straight line to the point of intersection of the eastern coast of Viet-Nam and latitude 15° North. For the purpose of implementing the objectives of this Agreement Hong-Kong shall also be considered as being in the Region.”
Approves the new definition of the Region embodied in the text quoted in the preceding paragraph which text is to be substituted by way of amendment for that appearing in Article I(a) of the Plant Protection Agreement for the South-East Asia and Pacific Region.
67. The Council received a report on the secretariat level consultations, which had taken place since its Forty-Eighth Session, designed to resolve the problems between FAO, Unesco and ILO in the field of agricultural education.
68. In the most recent consultations it had become clear that, while division of responsibility for work in this field was possible and had been established in the 1960 Agreement, such division had not proved to be a basis for action. Attention had thus been directed to devising a mechanism for achieving pooling of effort by the agencies concerned. The mechanism suggested was a Joint Division of Agricultural Education, Agricultural Science Training and Agricultural Training which would incorporate the budgets, staff and programs of the FAO Agricultural Education Branch, the Unesco Division of Agricultural Education and Science, and possibly, an as yet undefined ILO contribution. The Joint Division would be fully operational, assuming responsibility for all field (including UNDP) and Headquarters activities in the broad areas of : planning of agricultural education, agricultural science training and agricultural training; secondary and post secondary agricultural education; university education at undergraduate and postgraduate levels, and teacher training in agriculture.
69. A fifteen-member International Advisory Committee would be established, replacing the existing FAO Panel of Experts on Agricultural Education and the Unesco International Advisory Committee on Agricultural Education and Science, to provide advisory assistance to the Division. The FAO Panel of Experts on Agricultural Education would thus be abolished. An Inter-Secretariat Steering Committee, composed of a member from each participating agency, would provide policy guidance and maintain oversight of the Division's operation.
70. As regards location of the Division, three proposals had been put forward: (1) Rome; (2) Geneva; (3) alternatively, in the Headquarters of the participating agencies for three year periods. While the Director-General of FAO had, for a variety of reasons, proposed permanent location in Rome, secretariat level agreement had not been reached on this point.
71. As reported by the representative of Unesco, the current session of the Unesco Executive Board had also been fully informed of the negotiations in progress and had authorized the Director-General of Unesco to continue with a view to reaching agreement on co-operation with FAO and ILO in this important field. In the event agreement at the secretariat level had not been reached by the time of the April 1968 Session of the Executive Board, the necessary steps would be taken for the convening of an Ad Hoc Joint FAO/Unesco Inter-Governmental Committee.
72. The Council once again emphasized the great importance attached to agricultural education and training in the promotion of agricultural development and the need for expanded international assistance. While welcoming the progress in negotiations, the Council expressed concern that a definitive solution to the problems had not yet been achieved.
73. Most members of the Council still believed that strong FAO leadership and a co-operative effort of the agencies along the lines of the Agreement of 1960 was the preferred approach but were prepared to accept the Joint Division if there were no feasible alternative. The hope was expressed that any arrangements for a Joint Division would clearly indicate the channels of communication which national Governments could most effectively employ in accordance with the allocation of responsibilities for agricultural education and science training within their national administration.
74. On the question of location of the Joint Division, should this become a reality the Council was unanimous in rejecting both Geneva and the rotating seat proposal. The Council considered permanent establishment of the Division in Rome as essential for its successful operation.
75. Replacement of the separate FAO and Unesco advisory groups by one international advisory committee was welcomed. In this connection, some delegations expressed regret that the Director-General had not seen fit to appoint three members to the Unesco Advisory Committee on Agriculture Education and Science which would be meeting in Paris in the near future. The Director-General had considered that such appointment might not be appropriate at a time when negotiations were underway on the complex of problems in agricultural education, of which the Advisory Committee was a part. An FAO secretariat representative would, however, attend the session.
76. Many members of the Council thought that, even though the Director-General had been able to make substantial progress in their negotiations it would be desirable to have the advice of a governmental committee before finalizing arrangements. Since, apart from the one day meeting immediately following the Conference, there would not be another session of the Council before October 1968, and so as not to delay action, the Council agreed in principle to recommend to the Conference establishment of an Ad Hoc Joint Inter-Governmental Committee. The Fiftieth Session of the Council could then agree on membership and terms of reference for the Committee. Since the Fourteenth Session of the Unesco Conference had, by way of Resolution 2.343, already authorized establishment of such a committee, both agencies would be in a position to act any time after the April 1968 Session of the Unesco Executive Board. In the meantime, the Director-General was authorized to continue the secretariat level consultations, the results of which would be placed before the Committee.
77. A recommendation made by the Eighth FAO Regional Conference for the Near East (1967) to establish a Regional Food and Nutrition Commission for the Near East was considered at the Forty-Eighth Council Session. Noting that discussions were under way at that time with the World Health Organization, the Council requested the Director-General to prepare for consideration by the Council draft statutes and other appropriate proposals for the establishment of such a Commission in the light of further discussions with WHO.
78. The Council was informed of the subsequent consultations with the Director-General of WHO who had confirmed his general agreement with the proposal to establish a joint Food and Nutrition Commission for the Near East. However, he felt that it would be desirable to discuss in more detail certain aspects related to the joint participation by FAO and WHO in the activities of the proposed Commission.
79. The Council requested the Director-General to conclude the discussions with WHO at an early date, and to submit draft statutes and detailed proposals for the establishment of the Commission to the Fifty-First Session of the Council.
80. The Council considered the proposal for the establishment of a Regional Commission for Animal Production and Health in the Near East (CL 49/11). This proposal resulted from several recommendations made earlier at Near East regional meetings, and from consultations with Governments in the region concerning methods of establishing or improving co-ordination of schemes and projects implemented or planned under the auspices of UNDP/SF, partly in conjunction with the central office of the Near East Animal Health Institute.
81. In view of the urgent need for stimulating animal production and improving animal health in the region, several countries had expressed their interest in the establishment of a regional commission to promote both animal production and health in the Near East on a continuing basis; this commission would replace the existing ad hoc arrangements.
82. The Council concurred with the proposal set forth in CL 49/11, and adopted the following Resolution:
ESTABLISHMENT OF THE ANIMAL PRODUCTION AND HEALTH COMMISSION IN THE NEAR EAST
Having considered the proposal for the establishment of a Regional Commission for Animal Production and Health in the Near East and the salient points in its evolution,
Appreciating the urgent need for close co-operation in the planning and development of animal husbandry, production and health services throughout the region and for the dissemination of information resulting from research, investigation, application and development on as wide a scale as possible,
Hereby establishes under Article VI, paragraph 1 of the Constitution of the Organization, a Regional Commission, to be known as the “Animal Production and Health Commission in the Near East,” the statutes of which shall be as follows:
Membership of the Commission
1. Membership of the Commission is open to all Member Nations and Associate Members of the Food and Agriculture Organization, the territories of which are situated wholly or partly in the region concerned, as defined by the Organization, or which are responsible for the international relations of the non-self-governing territories in the region. Membership shall comprise such eligible nations as have notified the Director-General of the Organization of their desire to be considered as members.
Terms of Reference of the Commission
2. The terms of reference of the Commission shall be to review and exchange, both by means of regular meetings and by correspondence, information and experience on animal husbandry, production and health projects and development plans and on the problems encountered in the formulation, execution, follow-up and evaluation of such projects and plans in the countries of the region; to effect and ensure close co-ordination of, and liaison between, animal husbandry, production and health research, training and development projects in the countries of the region, utilizing as appropriate the services of the technical staff of the Organization and of the Near East Animal Health Institute for this purpose, and to provide for the widest possible dissemination of information concerning animal husbandry production and health throughout the region.
3. In particular, the terms of reference shall include:
Advising and making recommendations to the Director-General of the Organization and to Governments of the region on any matters related to animal husbandry, production and health,
Promoting co-ordination of national animal husbandry, production and health research, training and development projects already established or being established,
Supporting the work of the national projects referred to above by the joint elaboration of projects for assistance required to solve regional animal husbandry, production and health problems.
4. Any Member Nation of the Organization and any Associate Member that is not a member of the Commission but has a special interest in the work of the Commission may, upon request communicated to the Director-General of the Organization, be invited to attend sessions of the Commission, and of the subsidiary bodies, in an observer capacity, and ad hoc meetings.
5. Nations which, while not Member Nations or Associate Members of the Organization, are Members of the United Nations, may, upon their request and with the approval of the Council of the Organization, be invited to attend in an observer capacity a Session of the Commission in accordance with the provisions relating to the granting of observer status to nations adopted by the Conference of the Organization.
6. Participation of international organizations in the work of the Commission and the relations between the Commission and such organizations shall be governed by the relevant provisions of the Constitution and the General Rules of the Organization, as well as by the rules on relations with international organizations adopted by the Conference or Council of the Organization. All such relations shall be dealt with by the Director-General of the Organization.
Reports and Recommendations
7. The Commission shall report and make recommendations to the Conference through the Director-General of the Organization, who will bring to the attention of the Conference or Council any recommendations having policy, program or financial implications, it being understood that copies of its reports, including any conclusions and recommendations, will be circulated to interested Member Nations and Associate Members of the Organization and international organizations for their information as soon as they become available.
8. The Commission may establish such subsidiary bodies (including a Sub-Commission for Animal Husbandry and Production and a Sub-Commission for Animal Health) as it deems necessary for the accomplishment of its task, subject to the availability of the necessary funds in the relevant chapter of the approved budget of the Organization, the determination of such availability being made by the Director-General. Before taking any decision involving expenditure in connection with the establishment of subsidiary bodies, the Commission must have before it a report from the Director-General on the administrative and financial implications thereof.
Rules of Procedure
9. The Commission may adopt and amend its own Rules of Procedure, which shall be in conformity with the Constitution and the General Rules of the Organization and with the Statement of Principles Governing Commissions and Committees, as adopted by the Conference. The Rules of Procedure and amendments thereto shall come into force upon approval by the Director-General subject to confirmation by the Council.
83. At its Forty-Eighth Session, the Council; taking into account the desire of a number of developing Member Nations, particularly from Africa, to participate in the work of the Committee on Commodity Problems and the Committee on Fisheries, decided to recommend an increase in the membership of both Committees from 30 to 34 Member Nations.
84. It was pointed out that this increase by itself would not necessarily achieve the purpose intended, i.e., the allocation of additional seats to developing Member Nations.
85. The Council accordingly requested the Director-General to undertake a further study of the matter and report thereon to the Forty-Ninth Session. The Council also requested the Director-General to prepare any necessary amendments to the General Rules of the Organization in connection with the increase in membership of the Committees for forwarding by the Council to the Conference, and requested the Director-General to consider what method might be adopted in the election procedure to ensure that the purposes intended could be achieved.
86. The Council, following a full discussion of various aspects of membership in the two committees, recommended to the Conference the adoption of the following resolution:
DRAFT RESOLUTION FOR THE CONFERENCE
Membership of the Committee on Commodity Problems and of the Committee on Fisheries
Having noted paragraph 141 of the report of the Forty-Seventh Session of the Council and paragraphs 135 to 140 of the provisional report of the Forty-Eighth Session of the Council,
Acting in accordance with the provisions of Rule XXXIX of the General Rules of the Organization,
Decides to increase the membership of the Committee on Commodity Problems and of the Committee on Fisheries from 30 to 34 members,
Amends accordingly the first sentence of paragraph 1 of Rule XXIX of the General Rules of the Organization to read as follows:
“The Committee on Commodity Problems … shall be composed of 34 Member Nations elected by the Council …”
Also amends the first sentence of paragraph 1 of Rule XXX of the General Rules of the Organization to read as follows:
“The Committee on Fisheries … shall be composed of not more than 34 Member Nations elected by the Council …”
Recommends that the Council in electing the members of the aforementioned Committees should take into account the interest of developing nations in agricultural production trade and in fisheries resources and activities respectively.
87. In accordance with Rule XII-5 of the General Rules of the Organization, nomination of candidates for any elective place to be filled by the Conference or Council shall be made by the Government of a Member Nation or by its delegate. The procedure for nomination is determined by the appointing body, in this case the Council. The procedure hitherto adopted has been for the Chairman of the Council to decide the deadline for nomination of candidates for election to the five Council Committees. This deadline is usually the evening of the second day before the opening of the post-Conference Council Session. At that time delegations from all Member Nations are attending the Conference Session and the delegates submit to the Secretary-General of the Council the nonimations of Nations as candidates for election to the Committees upon which they wish to serve. A Member Nation may nominate itself.
88. With regard to the elections themselves, these are conducted by the Council at its post-Conference Session (which usually lasts only one day).
89. If there are no more candidates than seats to be filled (for example, in the case of the two Committees under consideration, if there were 34 nominations for the 34 seats), the Council may decide to elect the Committee concerned by clear general consent without recourse to balloting (Rule XII-9 (a)).
90. If there are more candidates than seats to be filled, the procedure laid down in Rule XII-12 is followed. The names of the candidates validly nominated are listed on a ballot paper and each Council Member casts votes (by secret ballot) for the candidates of his choice, to the number to be elected. Any ballot paper carrying more or less votes than the number of elective places to be filled is defective (Rule XII-12 (b)).
91. In the light of the foregoing, the Council agreed with the Director-General that, on a trial basis, the following system of balloting should be adopted for the election of the Committee on Commodity Problems and the Committee on Fisheries at the Fiftieth (i.e. post-Conference) Session of the Council in November 1967:
The closing date for nomination of candidates for elections to the two Committees will be determined by the Chairman of the Council, i.e., two days before the opening of the Fiftieth Council Session.
The list of the Member Nations validly nominated will be circulated to Council Members on the day before the Council Session.
The names of all candidates validly nominated will be listed on the ballot paper.
For the two Committees in question, Council Members will cast votes for only 30 seats in a first ballot (or in a first series of ballots, if in the initial ballot insufficient candidates received the majority required for election (Rule XII-12 (a)).
A second ballot (or series of ballots) will be conducted to fill the remaining 4 seats, the candidates included on this second ballot paper being confined to those candidates nominated under the procedure set out in (a) above which are from the four FAO Regions of Africa, Asia and the Far East, Latin America and Near East, as defined for Council election purposes. 1
However, should less than four candidates from these four regions remain unelected after the first ballot, then the candidates for the second ballot will include all the candidates which failed to be elected in the first ballot, irrespective of the region to which they are assigned.
This system would be applied for the election of the two Committees at the Fiftieth Session of the Council in November 1967. At its Fifty-First Session (1968), the Council would reconsider the matter in the light of the experience at its Fiftieth Session, bearing in mind the alternatives which had been considered on the various occasions that this subject had been discussed.
92. The Council took note of the report from the Director-General informing it that, pursuant to the authority given him under Council Resolution 1/48, and taking into account the deliberations of the Technical Conference on the Fisheries of the West African Countries (Dakar, 31 July to 4 August 1967), he had established the FAO Fishery Committee for the Eastern Central Atlantic and had promulgated its statutes which were reproduced in the report. He was now issuing invitations to a considerable number of countries eligible for membership under the criteria laid down by the Council and incorporated in the Committee's statutes, including Japan which had indicated to the Council its desire to become a member of the Committee. When the Committee became operative, the Regional Fisheries Commission for Western Africa would be abolished.
1 The Representative of Japan noted that his country was regarded as belonging to the group of “developed” Member Nations. He accordingly suggested that Japan be excluded from the second ballot or series of ballots for the remaining four seats, should the case arise.
93. The Council approved the Finance Committee's recommendation that the amount which remained in the Reserve Chapter of the Program of Work and Budget (C 67/3) be distributed over the chapters of the budget now, and that the Conference be presented with consolidated estimates based on the elimination of the Reserve. The Council further accepted the suggestion of the Finance Committee that part of the Reserve which would not be needed for the full 24 months coverage of the expected wage index adjustments be used to meet a contingent liability, i.e. the expected deficit in the agreement for medical services with ENPDEP (“Ente Nazionale di Previdenza per i Dipendenti da Enti di Diritto Pubblico”, the autonomous public authority which provides health insurance coverage of the Headquartes staff), so that any part of the provision for the second 5 percent wage increase not so needed would be used to cover in part the ENPDEP deficit.1
94. The Council approved the increase recommended by the Finance Committee of the Miscellaneous Income estimates for 1968/69 from $ 1,100,000 to $ 1,131,000, due to credits to be received from new Member Nations and new Associate Members.
1 See paras. 138–139 below.
95. The Council endorsed the Report of the Eighteenth Session of the Finance Committee (CL 49/14) and took necessary action with respect to the following items:
96. The Council noted that the amount of contributions collected to date in 1967 was somewhat higher than for the same period in 1966. There were however some important amounts still outstanding (Appendix F). The Council therefore appealed to Member Governments to remit the contributions outstanding at the eraliest possible date.
97. The Council further noted that as the arrears of Bolivia, Haiti and Paraguay exceeded the contributions due from them for the two preceding calendar years, these countries would risk losing their voting rights at the forthcoming Session of the Conference unless the Conference decided otherwise, in accordance with Article III-4 of the Constitution.
98. With regard to the amounts outstanding from Bolivia, the Council recalled that the Thirteenth Session of the Conference, by Resolution 33/65, had approved the proposal of the Government to pay its arrears of contributions in 10 annual instalments while at the same time paying its current contribution in the year of assessment. The Council regretted that $11,802.86 due in 1966 and $12,425 due in 1967 under this arrangement had not yet been received.
99. The Council noted that the increase in the level of the Working Capital Fund from $2,500,000 to $4,500,000 approved by the Thirteenth Session of the Conference (Resolution 34/65) was being gradually achieved. As of 30 September 1967 a total amount of $1,875,00 had been credited to the Fund in accordance with that approval, made up of $1,000,000 from the lump sum allocation for Administrative and Operational Services Costs from the United Nations Development Program (Technical Assistance Sector), and $875,000 from the 1966/67 Miscellaneous Income. The final payment to the Fund out of Miscellaneous Income for 1967, amounting to $125,000, will be made before the end of 1967.
100. The Council recalled that its Forty-Seventh Session, it had agreed to recommend that the Conference approve an amendment to Financial Regulation 6.9 dealing with the use of the Publications Revolving Fund. The amendment recognized that where films and publications had been financed by using extra-budgetary funds, in particular FFHC and WFP funds, it was equitable that the proceeds of the sales of such films and publications be credited back to such funds.
101. A further amendment to Financial Regulation 6.9 had become necessary as a consequence of the decision made by the Conference as its Thirteenth Session that the further development of the FAO magazine would be financed through additional revenue from advertising and subscription sales, with a limited free distribution.
102. The Council therefore recommended that the Conference approve the following amendments to the Financial Regulations, which not only include the amendment permitting the Director-General to credit the proceeds of sales of films and publications where appropriate to extra-budgetary funds but also empower the Director-General to finance the further development of the magazine through additional revenue from advertising and subscription sales: (underlined words to be added, [bracketed] words to be deleted).
Amendment to Financial Regulation VI
6.9 There shall be established a Publications Revolving Fund to which shall be credited [all] the proceeds of sales of films and publication including the proceeds of sales of the FAO magazine and the revenue from advertising in that magazine, except that where extra-budgetary funds are used to finance films of publications, the proceeds of sales may be credited to such funds.
The Fund shall be used only for the following purposes:
to meet the cost of reprinting those publications and re-issuing those films of the Organization for the sale of which there is a demand;
to promote within a maximum amount determined by the Conference, the sale of films and publications of the Organization[.];
to promote within a maximum amount determined by the Conference, the development of the FAO magazine.
Any balance at the end of each financial period in excess of $10,000 as shown in the Audited Accounts of the Fund shall be transferred to Miscellaneous Income of the financial period during which the Audit is completed.”
103. A consequential amendment had then become necessary in respect of Financial Regulation VII as follows: (underlined words to be added, [bracketed] words to be deleted).
Amendment to Financial Regulation VII
7.1 Contributions from Associate Members and all receipts other than:
Revenue from advertising in the FAO magazine
shall be classed as Miscellaneous Income, for credit to the General Fund. Interest or other income "
104. The Council noted that the 1968/69 Program of Work and Budget included an amount of $522,150 for substantive costs of the production and distribution of the FAO magazine (FAO Review).
105. The Director-General proposed that the revenue received for advertising and subscription sales be used in accordance with the decision of the Conference at its Thirteenth Session for the further development of the magazine, under an approved budget which would limit expenditure at any time to the income actually accrued. Accordingly, the Director-General submitted the following additional budget for the Publications Revolving Fund which was forwarded to the Council by the Finance Committee.
|Business Manager P-4|
Editorial Assistant G-6
Bilingual Typist G-3
|Cost of increasing run to 30,000 copies||10,000|
|Cost of reproducing advertisements||27,000|
|Mailing costs, envelopes etc.||6,740|
|TOTAL 1968/69||$120,400||TOTAL 1968/69||$120,400|
1 Based on an average of ten pages of advertisements per issue in 1968 and 17 pages in 1969 at a net revenue of $552 per page black and white and $825 for colour.
106. After a thorough discussion the Council recommended that the budget be approved, with the understanding that the cost of additional print runs and reproduction of advertisements could be covered up to an amount of $43,740, including mailing costs, etc., from the income accruing during the biennium from the sale of advertising and of the magazine to the Publications Revolving Fund, but that the employment of personnel to be paid from the income of advertisements and sales would be subject to prior approval by the Council.
European Commission for the Control of Foot-and-Mouth Disease, 1966
United Nations Development Program - Technical Assistance Sector, 1966
United Nations Development Program - Special Fund Sector, 1966
World Food Program, 1966.
107. The Council postponed consideration of the World Food Program accounts until after their approval by the Inter-Governmental Committee of the World Food Program. It examined the accounts enumerated under items (i) – (iii) and approved the External Auditor's reports thereon.
United Nations Development Program - Technical Assistance Sector - 1966
108. The Council noted that the External Auditor had drawn attention to the fact that equipment costing the equivalent of $196,495 purchased to equip a Forest Research Institute to be established by the Government of an assisted country had not been used because the Government had not implemented the project and that the equipment had been placed in storage in that country.
109. The Council took note of more recent information supplied by the Government to the United Nations Development Program Resident Representative in the country concerned, that the equipment is now being used by the Government for research purposes and that steps are being taken to implement the project. The equipment would be transferred to the Forest Research Institute as soon as the project is implemented. The Council noted that the Finance Committee would again review the matter at its next Session.
United Nations Development Program - Special Fund Sector 1966
110. The Council, while noting that outstanding commitments at the end of 1966 amounted to $29,454,951 as compared to $20,589,992 at the end of 1965 and $17,183,793 at the end of 1964, expressed concern about the continuing growth of the unencumbered balance of Special Fund Allocations which, at the end of 1966, amounted to over $70,000,000.
111. The Council stressed the importance of finding ways and means of utilising more quickly the funds made available to the Organization from the United Nations Development Program (Special Fund Sector), including subcontracting, in view of the urgent need for assistance of developing countries, and of the desire of donor countries that funds made available by them be used more effectively and promptly.
112. The Council recognized that problems arose in having Plans of Operation signed as three parties were involved in the procedure: the participating Government, the United Nations Development Program and FAO. It also recognized that problems resulted from the administrative structure in some developing countries.
113. The Council recommended that the Conference, when examining Item 6 of its Agenda pay adequate attention to these problems and expressed the hope that the structural review of the Organization would lead to an improvement in the Organization's performance in executing Special Fund projects, especially in the fields of recruitment, procurement and field administration.
114. The Council recommended the following draft resolutions for adoption by the Conference:
DRAFT RESOLUTIONS FOR THE CONFERENCE
United Nations Development Program - Special Fund and Technical Assistance Sectors
Audited Accounts for 1966
Having examined the audited accounts of the United Nations Development Program - Special Fund and Technical Assistance Sectors - for the financial year 1966, and the External Auditor's reports thereon,
Adopts the audited accounts for 1966.
European Commission for the Control of Foot-and-Mouth Disease
Audited Accounts for 1966
Having examined the audited accounts of the European Commission for the Control of Foot-and-Mouth Disease for the financial year 1966
Adopts the audited accounts for 1966.
115. The Council noted that an application had been received from the Hungarian People's Republic for re-admission as a Member of FAO, and that Barbados and the Bulgarian People's Republic had applied to join the Organization as Members. In addition, applications had been received from the United Kingdom on behalf of Bahrain and Qatar for admission as Associate Members.
116. The Council noted that should the Conference approve these applications, the assessments of Barbados, Bulgaria and Hungary in the proposed scale for 1968/69 would be 0.04 percent, 0.22 percent and 0.72 percent respectively, while Bahrain and Qatar would both be assessed at 0.024 percent as Associate Members.
117. The Council further noted that the contributions due for the last quarter of 1967 from these countries and the advances due to the Working Capital Fund from those applying for full membership would be as follows:
|Members||Assessment last quarter 1967||Advance due Working Capital Fund|
118. The Council noted that the Hungarian People's Republic, which had been a Member of the Organization up to 26 January 1952 at which date its withdrawal from the Organization became effective, owed an amount of $88,886.40 on account of arrears of contributions arising from its previous membership.
119. The Hungarian Government, at the same time as submitting its application for membership, has requested that the Conference consider an arrangement whereby the arrears could be paid over a period of 15 years. The Council considered that it would be more appropriate for Hungary to settle its arrears in 10 annual instalments in accordance with the precedent established in the instance of the re-admission to membership of Poland by the Ninth Session of the Conference.
120. The Council recommended the following draft resolution for adoption by the Conference:
DRAFT RESOLUTION FOR THE CONFERENCE
Arrears of the Hungarian People's Republic
Noting that the Hungarian People's Republic's arrears of contributions on re-admission to the Organization amount to $88,886.40,
that the Hungarian People's Republic's arrears shall be settled through the payment of ten annual instalments of $8,888.64 each. The first instalment shall be paid in 1967,
that the annual payment of the instalments referred to above shall constitute Miscellaneous Income and shall be considered as fulfilment of the Hungarian People's Republic's financial obligation to the Organization in respect of these arrears.
121. The Council at its Forty-Seventh Session had approved an advance of $125,000 from the Working Capital Fund in order to meet the costs of the Review of the Organization's General Structure. It noted from the Report of the Eighteenth Session of the Finance Committee that on the basis of information provided by the Director-General, it was estimated that the full costs of the Review would amount to approximately $115,000. A further sum of up to $30,000 would therefore be required, and the Council agreed with the Finance Committee that, to the extent to which this amount could not be met from savings during the current biennium, it should be met by an appropriate increase in the amount to be withdrawn from the Working Capital Fund which should be reimbursed from the excess Miscellaneous Income of the current biennium.
122. The Council adopted the following resolution:
WITHDRAWAL FROM THE WORKING CAPITAL FUND
Having noted that the cost of the review of the Organization's General Strcture, as arranged by the Council in accordance with Resolution 11/65 of the Thirteenth Session of the Conference, is now estimated at $155,000,
Authorizes the Director-General in accordance with the provision of Financial Regulation 6.3 to withdraw the additional amount required, up to $30,000 from the Working Capital Fund, to meet the anticipated increased expenditure.
123. The Council recommended the following resolution for adoption by the Conference:
DRAFT RESOLUTION FOR THE CONFERENCE
Reimbursement of Withdrawals from the Working Capital Fund
Noting that the Council at its Forty-Seventh Session authorized the withdrawal of an amount up to $425,000 from the Working Capital Fund, and at its Forty-Ninth Session authorized the withdrawal of up to $30,000, both amounts, totalling $455,000, to be used to meet unbudgeted expenditure resulting from:
the need of additional accommodation during the 1966/67 biennium, and
the review of the General Structure of the Organization as arranged by the Council in accordance with Resolution 11/65 of the Thirteenth Session of the Conference;
Noting that, in accordance with Financial Regulation 6.5 (b) advances made from the Working Capital Fund shall be reimbursed by such method as the Conference determines,
Further noting that the cash surplus in 1964/65 amounted to $591,665 and that Council at its Forty-Seventh Session instructed the Director-General to withhold the distribution of an amount of $425,000 of that surplus pending a Conference decision,
Considering that the actual amount to be withdrawn from the Working Capital Fund may now amount to as much as $455,000, and
Noting that the Miscellaneous Income of the current biennium is expected to exceed substantially the estimated amount,
Decides that, notwithstanding Financial Regulation 6.1 (b),
an amount of $425,000 of the above-mentioned cash surplus shall be used to reimburse the Working Capital Fund, and
an amount of up to $30,000 of the excess Miscellaneous Income for the biennium 1966/67 my be used to reimburse the Working Capital Fund.
Post Adjustment Classification
124. The Council was informed at its Forty-Eighth Session that, at the request of the Director-General, a new Rome/Geneva survey had been conducted by ILO in November 1966 and reviewed by the Expert Committee on Post Adjustments (ECPA) in June 1967. The new place to place survey had provided a post adjustment index figure of 104.5 compared with the time-to-time figure of 114.2 calculated by ILO for December 1966.
125. Both the Finance Committee and the Council had the benefit of a report by the Director of the FAO Statistics Division, on the basis of a review of the working files of ILO, which indicated that this significant discrepancy, at least in part, resulted from the methodology and procedures used in carrying out the Rome/Geneve place-to-place survey.
126. It was also the conclusion of the Director of the FAO Statistics Division that the new expenditure weights proposed by ILO as a result of its Rome expenditure survey were subject to an appreciable margin of error and this could not provide a basis for revising the ILO's existing Rome time-to-time index.
127. In the circumstances, the Council concurred with the Director-General's proposal to request a new survey in 1968 and agreed that the ILO survey team should be invited to review, with the Director of the FAO Statistics Division, his findings with respect to statistical methodology and survey procedures.
128. The Council was informed that the Administrative Committee on Co-ordination (ACC) was already aware of the problem of divergencies between indices derived from place-to-place comparisons and those resulting from time-to-time developments. It therefore concurred with the Director-General's proposal to suggest to the ACC that ECPA should look urgently into the possibilities of improvement in the general operation and statistical methodology of the post adjustment system.
129. In view of the significant implications for the remuneration of Rome staff in the Professional category and above, the Council stressed the need to arrange a new survey, through appropriate channels, at the eraliest feasible time. The Council also considered that, in future, whenever a basic survey was proposed which might influence salary scales or post adjustments, the Finance Committee and the Council should be first consulted.
General Services Developments
130. The Council was informed that, following a review of the number of grade levels in the existing General Service salary schedule in the light of current operational and staffing requirements, consideration was being given to extending the present General Service scale by two levels, i.e., G-8 and G-9. The Director-General would keep the Finance Committee informed of further developments and, in view of the alternative suggestions presented at the Council and the important administrative and personnel policy implications, no implementation action would be taken without the prior approval of the Committee and the Council.
Report on ICSAB Review of Remuneration of Professional Category and Above
131. The Council was informed that a recent session of the International Civil Service Advisory Board (ICSAB), the Board had decided to study the following:
Periodically (say, every four or five years), a comprehensive survey to be made of the salaries and other emoluments payable in terms of the “world market” for key or “bench mark” posts of particular importance to the organization.
In periods between the comprehensive surveys of “world market rates” the legislative bodies to be guided in determining interim pay adjustments by a special multi-national composite salary index. The object would be to measure annual increases in “real wages”.
132. The Finance Committee would regularly review and inform the Council on the outcome of the inter-agency exploration of these concepts in view of the significant administrative and budgetary implications which might arise. Any substantive changes in the present system would require the approval of the Council.
Views of the Staff Council
133. The Council noted that the Finance Committee had heard the views of the representatives of the Staff Council, on the problem of medical services and relationships with ENPDEP, and on a proposal of the Staff Council for establishing machinery “to arbitrate on any matters brought to it by the Director-General or the Staff Council.”
134. The Council recognized the importance for good staff relationships of proper consultation with the staff. It endorsed the Finance Committee's willingness to hear the representatives of the Staff Council on any important general issues affecting the staff and, in particular, if the Staff Council considered that the agreed procedures on consultation were not being adhered to.
135. The Council was satisfied that the officers most directly concerned with Management/Staff relationships intended to carry out, in spirit and in practice, the accepted consultation machinery on any item affecting the conditions of service and the general welfare of the staff.
136. The Council agreed that, in order to ensure an orderly and effective procedure for the presentation of staff views, any request to be heard by the Finance Committee should be submitted through the Director-General.
137. The Council noted the valuable and effective services of the present External Auditor and the recommendation of the Finance Committee, and decided to re-appoint the Comptroller and Auditor General of Great Britain as External Auditor of the Organization for an additional two years commencing with the accounts for the year 1968. It accordingly adopted the following resolution:
APPOINTMENT OF EXTERNAL AUDITOR
Noting that the Finance Committee recommended the re-appointment of the present External Auditor of the Organization,
Recognizing the continued valuable and effective services of the External Auditor,
Re-appoints the Comptroller and Auditor General of Great Britain as External Auditor of the Organization for a further two years commencing with the accounts for the year 1968.
138. The Council noted that an estimated deficit of $241,500 was foreseen for 1967/68 by ENPDEP, the autonomous public authority which provides health insurance coverage of the Headquarters staff. Of this deficit the Organization's share would be approximately $128,000, of which approximately $95,000 would be a charge to the Regular Program, payable over the next contract period with ENPDEP starting 1 January 1969. The balance of $113,500 would represent the share payable by the staff. In addition a 53 percent increase in contribution over the 1967 rate was estimated by ENPDEP for 1969, which would cost the Regular Program approximately $55,000 over and above the amount provided for in the 1968/69 Program of Work and Budget. The additional costs to the extra budgetary programs were estimated at approximately $55,000.
1 See para. 93 above.
139. The Council noted that the Finance Committee had stressed the importance of the Organization being fully satisfied as to the actual extent of any deficit, before making arrangements to settle it, and that the Committee would be informed of future developments.
140. The Council noted that proposals to meet the Organization's accommodation needs were under active consideration by the Italian authorities and that the Director-General expected that the Italian Delegation would be in a position to make a statement on the subject to the Fourteenth Session of the Conference.