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Summary Programme of Work and Budget, 1980-811

97. The Council welcomed the introductory statement of the Director-General, followed by the introductions of the Chairmen of the Programme and Finance Committees, who drew attention to the main points in the views of their Committees as reflected in their reports.

98. The Council endorsed the statement of the Director-General that the Programme of Work and Budget reflected a general consensus of Member Governments on strategies, priorities and means of action. Strong support for these had been expressed by the Committee of the Whole of the UN General Assembly as a major contribution to the achievement of, the New International Economic Order and the New International Development Strategy.

99. The proposals followed the policies laid down in 1976 with regard to decentralization to the country level, the increasing use of consultants and especially of national institutions in the implementation of programmes, including Technical Cooperation Among Developing Countries (TCDC) and the Technical Cooperation Programme (TCP). They provided a larger proportional increase to activities in the field, including a small increase in the TCP, than for Headquarters.

100. The Council noted that the Director-General hoped that a willing consensus on his proposals would be achieved, since he had done his best in a careful, professional and economical way to meet the needs of the world situation and FAO needed the minimum resources for this.

101. The Council agreed with the conclusion in the report of the Joint Session of the Programme and Finance Committees that the Summary Programme of Work and Budget followed the approved format, was clear and concise, and provided a satisfactory basis for consider-ation by the Council and preparation of the final Programme of Work and Budget. The Com-mittees had agreed that the strategies and priorities were fully in accordance with the world situation and previous policy guidance by the Council and Conference. They had recommended, therefore, that the Council should endorse the major programme proposals and the balance of allocations between them. It had further been noted with satisfaction that the means of action to be employed did not consist of any significant increase in established staff, particularly at Headquarters. The consensus of the Committees, with one member disassociating himself, had been to recommend to the Council the level of the budget proposed in the Summary Programme of Work and Budget.

102. After a thorough discussion, in which all but two members of the Council participated, the Council agreed that the Summary of Work and Budget, 1980-81 was the cornerstone of all of FAO's activities, and was well planned, brief, clear and to the point in setting out the Director-General's proposals for the next biennium. The format and content of the document greatly facilitated its discussion at the present stage, pending formulation of the full proposals to be included in the Programme of Work and Budget itself. The latter would include more detailed information not only on the programmes proposed but also on such matters as posts, upgradings, extra-budgetary funds and cost increases.

103. The Council therefore confirmed the desirability of continuing the present procedure and time sequence of providing it with a Summary Programme of Work and Budget, and then the final proposals for the Conference.

104. The Council was concerned with the gravity of the world background against which the Director-General's proposals had been formulated. The Council fully supported the unceasing efforts of the Director-General to alleviate this situation through policies and strategies which emphasized concrete action at the field level.

105. In their comments, many members referred to paragraphs of the Summary which dealt with the framework for 1980-81, proposed programme changes in various fields of activity, development support programmes, Technical Cooperation Programme, support services, objects of expenditure and cost increases. The Council appreciated the assistance provided by the reports of the Programme and Finance Committees which had reviewed these subjects in considerable depth.

106. Many members made specific reference to the prominent role assigned in the next biennium to the Special Action Programmes: the FAO Seed Improvement and Development Scheme, Prevention of Food Losses, Food Security Assistance Scheme, International Fertilizer Supply Scheme. All of these programmes had their roots in the Regular Programme and attracted relatively large voluntary contributions from a variety of extra-budgetary resources which made it possible to implement positive action programmes and projects in the countries which needed them. They fully agreed with the Director-General that the implementation of these programmes represented a positive contribution to the achievement of a New International Economic Order, as had been specifically recommended and recognized by the Committee of the Whole of the UN General Assembly.

107. The Council appreciated the Director-General's approach in developing his proposals from a "zero-based" analysis of total proposals from the various sectors of the Organization. Under this system not only the proposed increases but also the ongoing activities had had to be fully justified.

108. The Council welcomed the Director-General's proposals as being fully consistent with the policies adopted by it in 1976 and by the Nineteenth Session of the Conference with respect to decentralization to the country level. It was suggested, in this connexion, that consideration should be given to increased delegation of authority to Country Offices and to Regional Offices. Others, while supporting increased delegation to Country Offices, were of the opinion that no further increase should be provided to Regional Offices.

109. The Council welcomed the fact that the need for new posts had been rigorously evaluated and that in most cases proposals had been accepted for only the highest priority needs and this mainly by the abolition of posts in lower priority areas, with the result that only four additional posts were proposed for Headquarters.

110. The Council generally welcomed the fact that wherever possible and feasible, provision had been made to implement new initiatives and programme expansions through increased use of consultants, contracts and national institutions.

111. The Council welcomed the continuation of the policy of reduction in meetings, documents and publications but some members suggested that these could be further reduced. This would contribute to even greater "administrative" economy.

112. The Council considered that the proposed increase for the Technical Cooperation Programme was very modest, and noted that it represented only the same proportion to the total budget as at present. It stressed its full satisfaction with this Programme recognizing that it had proven to be an effective tool for helping developing countries in the achievement of their agricultural development objectives.

113. The Council fully supported the proposals with regard to assistance to developing countries in identifying and formulating projects for investment in agricultural development by financing institutions such as the World Bank, IFAD and the regional development banks.

114. The Council noted with satisfaction the continuing expansion in the field programme and the increasing importance of the Trust Fund component of this programme. It particularly welcomed the emphasis placed by the Director-General on the use of developing country institutions, personnel and services in the execution of projects and urged that this method of promoting TCDC be further developed.

115. With regard to UNDP-financed projects, the Council urged that consultations be held with UNDP to ensure that the pre-eminent position of FAO was recognized in the designation of executing responsibility for projects in the agriculture sector.

116. The proposed staffing of Country Offices was generally recognized as the minimum required for effective functioning, but some members had reservations on this point and requested that efforts be made to keep the growth of staffing, particularly in the General Service grades, in check. A request was also made that there should be a review of the number of Country Offices, taking into account inter alia, the possible coverage of two or more countries by such offices.

117. In its discussion of the specific programme proposals for 1980–81, the Council made a number of observations.

118. It fully supported the proposals in the field of natural resources and endorsed the increase which was envisaged. It particularly welcomed work on rehabilitation of existing irrigation and drainage schemes in addition to that of extending areas of irrigation in countries which required them and requested that experience available in certain countries as regards the causes of deterioration of irrigation systems should be taken into consider-ation in order to improve training.

119. With regard to remote sensing activities, the Council recognized that FAO's role was mainly of a catalytic and intermediary nature bringing together the needs of developing countries and the availability of technical data from developed country sources. Remote sensing techniques were extremely valuable in assisting countries in surveying and evaluating their natural resources as a basis for formulation of policies and plans for agricultural, forestry and fisheries development.

120. The Council welcomed the continuing emphasis given to seed production. It expressed its satisfaction on the support given to this activity by the Committee of the Whole of the UN General Assembly.

121. It also strongly supported the emphasis on activities involving increasing the production of rice, improving its quality, and reducing losses after harvest since this was one of the basic food crops of great importance to many countries.

122. The Council endorsed the high priority given to the prevention of food losses activities but recognized that to make a real impact in countries, substantial contributions from extra-budgetary sources would be required. It reiterated the need to support FAO's Action Programme on an assured and continuing basis. The Council fully supported the Organization's activi-ties as regards Desert Locust Control.

123. The Council stressed the importance of the activities on genetic resources in animals, fisheries and forestry.

124. The Council gave full support to the overall approach to implementation of the livestock programme. In this connexion it was suggested that increased attention should be given not only to the preservation of animal genetic resources, but that consideration might be given to assisting countries in replenishing their stocks of animals which had been eradicated as a result of attempting to limit the spread of contagious diseases. The Council gave strong support to the proposed poultry development programme which was now in the final stage of preparation. It expressed the hope that adequate funding would be forthcoming for the implementation of the programme.

125. The need for increased research support in Latin America was stressed. The cooperative network system among European research institutions, with which fifteen developing countries were associated, was noted with satisfaction by the Council.

126. The Council strongly welcomed and endorsed the priority given to agrarian reform and rural development expecting that this priority would be fully justified and reinforced by the results of the forthcoming World Conference on Agrarian Reform and Rural Development (WCARRD). It was stressed that rural women made an essential contribution to overall rural development and that provision should be made for their full participation at all levels of development. The Council appreciated the Director-General's anticipation of the recommen-dations of WCARRD affecting FAO by providing considerable programme strengthening in this field, but it was felt by some delegations that this programme strengthening would be insufficient to follow up the probable conclusions of the World Conference and FAO's Conference.

127. The Council expressed satisfaction that the Summary Programme of Work and Budget properly reflected the priority of nutrition, following the report of the Committee on Agriculture.

128. The Council supported the expansion of the Global Information and Early Warning System, which had been effective in supplying governments quickly and regularly with an independent assessment of the situation and short-term outlook for foodgrains as well as for the world food security in general. It recalled once again the need for a larger participation in the System. Strong support was given also to FAO's food security activities, including the Food Security Assistance Scheme.

129. With regard to trade in basic agricultural commodities, which comprised the principal exports of a large number of developing countries, the Council took note of the views expressed in the Summary on the rising tide of protectionism. In this connexion, the Council supported the proposals in Programme 2.1.8, Food and Agricultural Policy, to intensify support for inter-governmental action and trade negotiations.

130. The Council observed that the continued growth in the world's demand for fish protein, limited supplies, exploitation or over-exploitation of most traditionally acceptable species, made FAO's continued activities in the field of fisheries extremely important. Strong support was given to the Director-General's initiatives to assist countries in taking full advantage of fisheries in their Exclusive Economic Zones (EEZ).

131. Regarding inland fisheries and aquaculture, the Council agreed that special efforts should be made in those countries which did not have the opportunity for developing marine fisheries but which had potential for development in inland waters which offered possibilities for integrating such activities with rural development.

132. The Council noted that the long-term goals of the forestry programme were to increase the economic and social benefits derived from the forestry sector, through emphasis on investment promotion and the evolution of dynamic management systems which harmonize human and social needs with environmental balance.

133. The Council welcomed the greater emphasis given to rural community development within the forestry programme, and agreed that afforestation and control of desertification should continue to receive priority attention, particularly through activities involving fuelwood production in arid zones and the protection of watersheds in mountainous areas.

134. The Council expressed satisfaction about the continuing growth in investment activities and the fruitful cooperation between the Investment Centre and financing agencies including IFAD. It welcomed the recent great increase in loans to agriculture by the World Bank, and the continuing close collaboration between that Organization and FAO.

135. With regard to the Current Agricultural Research Information System (CARIS), it was suggested that it was premature to decentralize this activity and that instead the programme should be integrated into the Organization. The Council was informed about the invitation of the Government of France to French-speaking countries to participate in a seminar on the International Information System for Agricultural Sciences and Technology (AGRIS).

136. In concluding its discussions, the Council reached unanimity on the strategies, priorities and means of action proposed by the Director-General for 1980-81.

137. While appreciating the Director-General's efforts in setting the level of the budget, some members having regard particularly to the economic, financial and budgetary difficulties in their countries, in order to achieve a lower budget level, advocated a reduction or a postponement of certain proposed expenditures. These members were unable to express a firm opinion and reserved their position on the proposed level until such time as they had had an opportunity to review carefully the full Programme of Work and Budget proposals and to discuss them in detail at the Conference. Subject to this, some of the latter felt, however, that they would be in a position accept the consensus. A few countries, while accepting the budget level in the Summary Programme of Work and Budget, indicated that any further increase beyond that level would be difficult for them to accept.

138. An overwhelming majority of the members would have preferred a higher budget level, but they recognized the constraints under which the Director-General had had to formulate his proposals. Taking this into account, they therefore strongly supported his request for a budget level of US$ 271.66 million (at US$ 1 = Lit. 879) as the absolute minimum.

139. The Council noted that the Director-General had found that the views expressed by the delegations would be very useful in the formulation of the complete Programme of Work and Budget.

140. Taking into account the views expressed, the Council reached a consensus and agreed that the Director-General should proceed with the preparation of the final Programme of Work and Budget on the basis of the proposals in his Summary Programme of Work and Budget.

Report of the Thirty-Sixth Session of the Programme Committee and of the Forty-Third Session of the Finance Committee 2

Review of FAO Investment Activities 3

141. The Council expressed satisfaction with the report of the Programme Committee for its comprehensive and in-depth review of FAO's investment activities. The Council fully endorsed the views and recommendations of the Programme Committee set out in paras. 2.148 – 2.163 of its report.

142. In discussing the report of the Programme Committee, the Council welcomed the notable achievements of the Investment Centre in promoting investment, from both external and domestic sources, in the agriculture of the developing countries. In 1978 alone, investment resulting from the Centre's activities totalled. US$ 3.7 billion (including loans from financing institu-tions of US$ 1.3 billion).

143. The Council reaffirmed that the principal function of the Investment Centre was to provide assistance to the developing countries in the identification and preparation of investment projects. In successfully carrying out this task, the Centre also acted as a catalyst in accelerating the flow of investment. The competition between financing institu-tions for the Centre's assistance highlighted the importance and competence of FAO's investment services.

144. The Council noted the increasing emphasis being given to investment in agriculture by developing countries and by multilateral and other financing institutions with which FAO cooperated. It particularly welcomed the importance given by the Investment Centre in its work to rural development and support to small farmers, as well as to relatively new fields of investment such as agro-industry, social forestry, nutrition and storage. The Council gave full support to the efforts of the Investment Centre to encourage financing institu-tions to adopt a programme or sector approach to lending.

145. The Council welcomed the close working relations that had been established with the World Bank, the major multilateral lender to agriculture, noting that the main part of FAO's investment work was carried out in cooperation with the Bank. About one third of its lending for agriculture was for projects identified or prepared by the FAO/World Bank Cooperative Programme. The Council emphasised that FAO's long-standing links with the World Bank should be maintained and strengthened.

146. The Council particularly welcomed FAO's close cooperation with IFAD, the assistance it had provided in the formulation of the Fund's lending policies and criteria and in the identification and preparation of the large proportion of IFAD projects co-financed by the Fund in 1978. The Council considered that Investment Centre cooperation with IFAD would become specially significant in the formulation of Fund-initiated projects. FAO and IFAD were natural partners, complementing each other. The Council urged that this partnership be consolidated.

147. The Council also welcomed FAO's close cooperative relations with the regional development banks, subregional financing institutions, national development banks under the FAO/Bankers Programme, and Arab funds. All of these institutions, particularly the regional banks with greatly expanded capital resources, were placing greater emphasis on lending for agriculture. Interest was expressed in the progress of FAO cooperation with Arab financing institutions and of the current discussions on joint activities with the Inter-American Development Bank.

148. Recognizing the critical shortage in many developing countries of trained manpower to identify, prepare and implement investment projects, the Council urged FAO to devote particular attention to building up the capacity of national institutions for this purpose. More countries should establish project preparation units. FAO assistance to these units would be provided both by the Investment Centre through on-mission training, and through the more formal training courses given by the Policy Analysis Division. At the same time the Council recommended the increased use of consultants and national staff from developing countries on Investment Centre missions, since this would lead to the transfer of these much needed professional skills and to greater self-reliance on the part of the countries concerned. In this connexion, it was felt that the Bankers Programme was in a special position to help developing countries build up this capacity, since two thirds of its members were national development banks, most of which were increasingly being required by their governments to invest in the agricultural sector.

149. The Council agreed with the Programme Committee's view that a central concern of FAO should be to expand the pipeline of suitable projects to attract the increased resources of the financing institutions. The Council welcomed the initiatives already taken by FAO to help solve this critical problem,specifically the recent agreement with UNDP, under which the Investment Centre, in collaboration with other FAO units, had begun to monitor selected UNDP projects with investment potential. This had the aim of bringing them as soon as possible to the feasibility stage and ensuring that they were brought to the attention of financing institutions. Closer linkages between pre-investment and investment activities would thus be attained. In this connexion the Council noted with concern the length of time required from identification of a project proposal to its financing and implementation. It fully supported the Investment Centre's current study to determine ways and means of shortening the project cycle.

150. The Council also welcomed the Investment Centre's initiative in mounting general identification missions to certain countries jointly on behalf of several financing institutions and on occasion mounting such missions independently of any financing institution. The interest in principle of a potential source of financing was however always ascertained in advance.

151. The Council supported the Director-General's intention to obtain greater uniformity in the agreements with financing institutions. It noted that agreements that had been concluded in the past were being renegotiated in line with this policy.

152. The Council felt that it was essential that FAO maintain its independence and flexibility in this field of activity. The first responsibility of the Investment Centre was to the governments of member countries. For this reason, FAO should continue to bear a proportion of mission costs with the financing institutions. As the project cycle developed, from identification through preparation to appraisal, the major and increasing portion of costs should however be borne by the financing institution.

153. In conclusion, the Council fully supported the various steps taken recently by the Investment Centre to improve the effectiveness of its services to the developing countries, endorsed the strengthening of the Invesment Centre that had taken place over the previous three years, and recommended its continued strengthening in order to cope with the expected increase in demands for its assistance.

Annual Report on Budgetary Perfomance4

154. The Council took note of the Director-General's Twelfth Annual Report on Budgetary performance to Member Nations as attached to the report of the Forty-Third Session of the Finance Committee.

155. The Council also noted that during 1978 an amount of US$ 968 055 had been charged to the Special Reserve Account established by Resolution 27/77 of the Conference, owing to the unfavourable rate of exchange between the US dollar and the Italian lira which prevailed during 1978.

Financial Position of the Organization 5

(a) Status of Contributions and Contributions in Arrears

156. A statement of contributions outstanding at 18 June 1979 is attached as Appendix E. A summary of contributions collected to 18 June is as follows:

US $
Amounts outstanding at 1 January*
Amounts payable in 1979 104 592 283.20
Contributions in arrears 7 319 532:40
111 911 815.60
Receipts up to 18 June
Amounts payable in 1979 46 670 472.31a
Contributions in arrears 4 635 368.28b
51 305 840.59
Amounts outstanding at 18 June*
Amounts payable in 1979 57 921 810.89c
Contributions in arrears 2 684 164.1.2c
60 605 975.01c

* excluding amounts payable in future years under various Conference Resolutions.

a US$ 11 150 661.62 distributions as of 1 January 1979 of Surplus of Prior Biennium.

b includes US$ |1 004 203.38 distributions as of 1 January 1979 of Surplus, of Prior Biennium, but excludes US$ 49 676.00 received from the Dominican Republic, payable in 1980 through 1984 under Conference Resolution 39/75.

c See Appendix E

157. The Council noted with concern that, as shown in the following graphic presentation, in spite of a sizeable distribution of surplus from the prior biennium, only 44.62% of current year's assessments had been collected as of 18 June 1979 compared to 57.56% at the same date in 1978 and 51.45% in 1977.

Percentage of Current Assessmens collected

(Cumulative year to date

158. Recalling that, in accordance with Financial Regulation 5.5, contributions were, in practice, payable by mid-February of each year, the Council agreed with the Finance Committee that all Member Nations with contributions outstanding should respect the undertakings they had entered into and called upon them to arrange for prompt payment of their obligations both now and in the future.

159. The Council further noted that as the arrears of eight Member Nations (Bolivia, Central African Empire, Congo, Democratic Kampuchea, Grenada, Iran, Nicaragua and Paraguay) exceeded the contributions due from them for the two preceding calendar years, they risked losing their vote at the forthcoming Session of the Conference in accordance with Article III.4 of the Constitution.

160. In respect of Paraguay, the Council noted with particular concern that amounts overdue under Conference Resolution 26/71, whereby Paraguay was allowed to liquidate its arrears of contributions over a ten-year period, totalled US$ 78 761 .00 for the period 1975-78 with an additional US$ 17 697.00. payable in 1979. While other Member Nations with financial difficulties had met their obligations to the Organization, Paraguay's commitments were long overdue.

161. The Council was advised that, subsequent to the Forty-Third Session of the Finance Committee, Grenada had requested a waiver of all or any portion of its obligations to the Organization pointing out that the circumstances giving rise to the accumulated obligations were beyond the control of the present administration. The Organization had replied that such a waiver was without precedent or constitutional basis and could only be decided by the FAO Conference. The Organization further indicated that the Conference in analogous situations in the past had approved on recommendation of the Finance Committee and Council instalment plans for liquidation of arrears over a period of ten years, thus also restoring the voting rights of the Member Nation. Should Grenada reply with a request for such an instalment plan, it would be submitted to the next Session of the Finance Committee and Council; otherwise Grenada's request for a waiver of all or a portion of its obligations would be submitted to the Conference for consideration.

162. The Council appealed to these Member Nations to regularize their positions before the Twentieth Session of the Conference so that the question of their right to vote would not arise.

163. The Council noted with pleasure that the Dominican Republic had recently settled all arrears instalments under Conference Resolution 39/75 as well as its currect contributions for 1975 to 1978 and part of its 1979 assessment.

(b) Application for Membership

164. The Council was informed 6 that the Independent State of Western Samoa had applied for membership of the Organization. It noted that the 1979 UN assessment rate for Samoa was 0.01 percent, the minimum,and that the same minimun rate applied in FAO in the 1978-1979 FAO scale. The Council noted that the contributions due for the last quarter of 1979 would be US $ 2 600.00 in accordance with the established principles and practice. The advance due to the Working Capital Fund would be US$ 650.00.

Scale of Contributions 1980-81 7

165. The Council, agreeing with the recommendation of the Forty-Third Session of the Finance Committee, proposed that the Conference adopt for 1980-81 the Scale of Contributions given in Appendix F to this Report which is based on the United Nations Scale of Assessments for 1979, subject however to any adjustments from the admission of new Members at the Twentieth Session of the Conference.

166. The Council accordingly recommended the following draft resolution for adoption by the Conference:



Having noted the recommendation of the Seventy-Fifth Session of the Council,

Decides to adopt for use in 1980-81 the Scale of Contributions set out in Appendix F which is derived directly from the United Nations Scale of Assessments as in force in 1979.

167. With regard to the increase in the rate of assessment of Viet Nam from 0.01 percent in the 1978-79 FAO Scale to 0.04 percent in the 1980-81 FAO Scale, it was noted that the 1980-81 rate was derived directly from the UN assessment rate in force in 1979, while the 1978-79 rate had been decided by the Nineteenth Session of the FAO Conference, in that, at the time, no UN rate for Vietnam had been established. Although a member pointed out that Viet Nam had been classified in 1977 as a "most seriously affected" nation, it was noted that the UN Committee on Contributions had subsequently reviewed the matter and, recognizing that the special circumstances of Vietnam had been taken into account in its recommendation, confirmed the proposed |UN assessment rate, which was so decided by the General Assembly on 3 November 1978. In this connexion, the Council recalled the decision of the Eighteenth Session of the Conference that the FAO Scale of Contributions continue to be derived directly from the current UN scale of assessments.

UNDP Support Costs 8

168. The Council was informed of developments since its last session.

169. The Council recalled the directive of the Conference that no decision be taken affecting the Organization before prior consideration by the Governing Bodies and noted that the Director-General would report to the Conference on developments at that date.

Authority to Borrow 9

170. The Council recalled the Director-General's statement at its last session 10 concerning the action taken by some governments to withhold part of their assessed contributions to the approved regular budgets of the United Nations and Specialized Agencies.

171. The Council noted the Director-General's request that, in the light of possible consequential delays in the receipt of the contribution of the largest contributor, he should be given authority to borrow in case of need from internal and external sources. The Council further noted that the borrowing would be restricted to cases of need in 1979, after use of funds in the Working Capital Fund and the Special Reserve Account.

172. The Council recalled that it had set precedents for such action in adopting Council Resolution 4/43 at its Forty-Third Session in 1964, and authorizing a loan to assist UNDP in meeting the problems stemming from its financial crises in 1975. 11

173. The Council endorsed the Finance Committee's view that the primary source of such loans should be internal funds. If any interest were to be payable on loans, such interest should be restricted to the minimum and should be met from Miscellaneous Income of the 1978-79 biennium.

174. The Council accordingly adopted the following resolution:

Resolution 3/75



Noting that the largest contributor, as a result of conditions attached to the use of its assessed contribution for 1979, may further delay the payment of that contribution,

Having reviewed the report of the Finance Committee on the possible impact of such delay on the rate of receipts from contributions in relation to the expected expenditure rate in the current biennium,

1. Authorizes the Director-General to borrow in case of need in the course of 1979, after use of funds in the Working Capital Fund and the Special Reserve Account, from available internal or external sources an amount of up to US $5 000 000, such borrowings to be repaid as soon as adequate contributions are received;

2. Further authorizes the Director-General to negotiate and contract loans with such lenders as he may select, having due regard, in setting the terms thereof, to the necessity of reducing interest costs to a minimum;

3. Decides that any interest payable on such loans be charged to Miscellaneous Income of the 1978-79 biennium;

4. Requests the Finance Committee to keep the position under review, and to report to the Council in 1980 on action taken.

International Civil Service Commission Matters(ICSC)12

175. The Council's attention was drawn to the report by the Director-General on the decisions and recommendations of the ICSC to the UN General Assembly and to Executive Heads of other organizations in the UN system. The Council endorsed the Finance Committee's recommendations and approved the following changes in Staff Regulation 301.0321 13 on dependency allowances and Staff Regulation 301.033 13 on the education grant:

"301.033 Subject to a maximum amount established by the Council, the Director-General shall also establish terms and conditions under which an education grant shall be available to:

(i) [a] staff members serving outside [his] their recognized home country, whose dependent [child] children [is] are in full-time attendance at a school, university or similar education institution;

(ii) any staff member, whether expatriate or not, whose dependent children are unable by reason of physical or mental disability to attend a normal educational institution and therefore require special teaching or training to prepare them for full integration into society or, while attending a normal educational institution, require special teaching or training to assist them in overcoming the disability.

In applying the scale of reimbursement approved for the education grant, if expenses incurred by a staff member are in a currency other than the US dollar, the rate of exchange used shall be whichever is more favourable to the staff member, i.e.either (a) the rate in force in January 1977, or (b) that in force at the date of settlement of the claim.

301.0331 Eligibility for the grant under Staff Regulation 301.033(i) shall begin with the child's fifth birthday and shall continue until the end of the [scholastic year in which the child's twenty-first birthday occurs] fourth year of post-secondary studies or the award of the first recognized degree, whichever is the earlier.

301.0332 Eligibility for the grant under Staff Regulation 301.033(ii) shall begin from the date on which the special teaching or training is required up to the end of the year in which the child reaches the age of 25 years.

301.0321 For the Professional and higher categories, dependency allowances shall be as follows:

(i) for each dependent child, US $ 450 per annum. Where there is no dependent spouse, no allowance shall be paid for the first dependent child in respect of whom the dependency rate of staff assessment is applicable;

(ii) where there is no dependent spouse, a single allowance for one of the following secondary dependents: father, mother, brother, or sister, of US$ 300 per annum;

(iii) the amount of either of these allowances, if paid in the currency of the the country of the duty station, shall not be less than that currency's equivalent of the dollar amount of the children's allowance in January 1975, and of the secondary dependent's allowance in January 1977."

176. The Council further authorized the Director-General to promulgate the necessary amendment to Staff Regulation 301.161 on the repatriation grant at such time as the ICSC will have declared itself with respect to the outstanding questions of detail.

Appointment of External Auditor14

177. The Council agreed to re-appoint the Comptroller and Auditor-General of the United Kingdom for a further period of two years commencing with the audit of accounts for the year 1980, and adopted the following resolution:

Resolution 4/75



Noting that the Finance Committee recommends the re-appointment of the Comptroller and Auditor-General of the United Kingdom as External Auditor of the Organization,

Recognizing the effective services of the External Auditor,

Decides to re-appoint the Comptroller and Auditor-General of the United Kingdom as External Auditor of the Organization for a further period of two years commencing with the audit of accounts for the year 1980.

178. For future appointments the Council would continue to take account of principles and practices followed by other organizations in the UN System.

Headquarters Accommodation 15

179. The Council was informed that delays in the restructuring of Building "D" are being experienced and that completion was now foreseen by the end of the first quarter of 1980. It noted that an extension of the lease for Building "G" had become necessary and that rent and related costs had to be provided for in the 1980-81 budget.

180. The Council also noted the actions taken by the Director-General with regard to the new building complex and that a joint FAO/Government of Italy Working Group had been formed and meetings held to examine the matter and to formulate concrete proposals.

Technical Cooperation Among Developing Countries (TCDC) 16

181. The Council reconfirmed its support for Technical Cooperation among developing countries as a development concept which had gained increased importance in the United Nations System since the adoption of the Buenos Aires Plan of Action. It commended the "pioneering work" which the Organization had undertaken in this field. While TCDC should not be'viewed as a panacea for accelerated development in agriculture or as an alternative to the transfer of technologies from developed countries, it had a vital role to play in stimulating the direct involvement of national institutions and resources in the development process.

182. The Council noted that TCDC was particularly relevant for agriculture, forestry and fisheries, and the potential for TCDC in these fields was virtually unlimited. Stressing that the primary responsibility for implementing TCDC lay with the developing countries themselves, the Council nevertheless felt that FAO's role in TCDC should not be only catalytical and supportive, but that the Organization should play a dynamic role in developing new concepts and approaches and in assisting countries to identify their needs and capacities. The Council noted specific examples of developing countries that were already actively pursuing TCDC policies by making available their experts and qualified national institutions for technical cooperation.

183. The Council considered that The greatest possibilities for the practical realization of the objective of TCDC lay in cooperation between neighbouring countries with the same ecological, economic and social conditions. Cooperation at this level could subsequently be extended regionally and inter-regionally between developing countries. It also stressed the importance of FAO maintaining links through Regional and Country Offices with the sub-regional and regional institutions which exercised a vital role in the promotion of TCDC.

184. The Council endorsed the measures taken by the Director-General to intensify efforts ; to promote TCDC, namely: the establishment of a focal point in the Field Programme Development Division (DDF), the inclusion of TCDC in various parts of the Programme of Work and Budget for 1980-81, improved use of developing country capabilities in FAO programmes and the promotion of TCDC at the Regional and Country level and a more active role of FAO Country Representatives in giving complete information to local authorities to help increase the participation of developing countries in technical meetings. It noted that, while significant progress had already been made, the utilization of developing countries' capacities in FAO's programmes was still too modest and that further concentrated efforts were needed in this respect, consistent with the interests of recipient countries and the responsibility of FAO to maintain the quality of services rendered. The Council recognized, however, that some developing countries themselves had to show greater readiness to accept inputs from other developing countries, and urged governments concerned to give favourable consideration to such policies. At the same time, care should be exercised to avoid a "brain drain". Noting the valuable exchange of information promoted by such systems as the Current Agricultural Research Information System (CARIS) and the International Information System for Agricultural Sciences and Technology (AGRIS), the Council felt that increased attention should be given by FAO to the systematic collection and dissemination of information on developing countries' capacities in FAO's fields of competence.

185. The Council noted that the establishment of an Intelligence Commodity Service in Africa, at the request of the last African Regional Conference, would be proposed to the next Regional Conference. This would assist the developing countries in overcoming constraints resulting from the existence of established commercial structures dominated by transnational corporations. Steps had also been taken to publicize more widely FAO's calls for tenders for studies and procurement to give better chances to firms from developing countries to compete for their award.

1 CL 75/3; CL 75/4; CL 75/PV/5; CL 75/PV/8; CL 75/PV/1O; CL 75/PV/18.

2 CL 75/4; CL 75/PV/11; CL 75/PV/18.

3 CL 75/4, paras. 2.116 - 2.163; CL 75/PV/11; CL 75/PV/18.

4 CL 75/4, paras. 3.50 - 3.54; CL 75/4, Appendix A; CL 75/PV/11, CL 75/PV/18.

5 CL 75/4 paras. 3.55 - 3.73; CL 75/LIM/1; CL 75/PV/11; CL 75/PV/18.

6 See para. 206 below.

7 CL 75/4, paras. 3.74 - 3.80; CL 75/PV/11; CL 75/PV/18.

8 CL 75/4, paras. 2.169 - 2.170; CL 75/PV/11; CL 75/PV/18.

9 CL 75/4 paras. 3.81 - 3.86; CL 75/PV/11; CL 75/PV/18.

10 See Appendix D of CL 74/REP.

11 See CL 68/REP.

12 CL 75/4, paras. 3.91 - 3.99; CL 75/4 Appendix D; CL 75/PV/11; CL 75/PV/18.

13 Deletions in square brackets [ ]; additions underlined.

14 CL 75/4, paras. 3.126 - 3.132; CL 75/PV/11; CL 75/PV/18.

15 CL 75/4, paras. 3.100 - 3.112; CL 75/PV/11; CL 75/PV/18.

16 CL 75/14; CL 75/PV/7; CL 75/PV/17.

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