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APPENDIX E

FAO HEADQUARTERS AGREEMENT
(EXCHANGE OF LETTERS)

1. On 16 October 1990 an exchange of letters was signed by the Director-General and the Permanent Representative of Italy relating to the reimbursement of rent under the FAO Headquarters Agreement, together with an agreed list of rented premises concerned.

2. Copies of the following documents are appended for the information of the Council as follows:

- Annex A: Letter from the Director-General

- Annex B; Letter from the Permanent Representative of Italy to FAO

- Annex C: Agreed list of rented premises.

ANNEX A

FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS

The Director-General

Rome 16 October 1990

Excellency,

I have the honour to refer to discussions that have taken place between representatives of the Italian Government and of this Organization with respect to the extension of the boundaries of the headquarters seat of the Organization, as a result of its occupation of land and buildings, for its institutional purposes, that are not covered by the current definition of the headquarters seat.

It is implicit in the Headquarters Agreement signed at Washington on 31 October 1950 that adequate accommodation would be provided to meet the needs of the new FAO Headquarters as the Organization developed. It was for this reason that Article I, section 1(f)(ii), while describing in some detail in Annex A to the Agreement, the land and buildings included within the scope of the term "Headquarters Seat", specifically envisaged the conclusion of supplementary agreements including other land or buildings within that scope. In accordance with these provisions, the Italian Government has, over the years, generously placed additional office accommodation at the Organization's disposal at the Terme di. Caracalla site.

Howeyer, this accommodation has proved to be insufficient, and it has proved necessary for the Organization to rent further office space on the open market, in order to provide adequate accommodation for its headquarters staff.

Taking into account the above developments, the Italian Government, by Law No. 506 of 3 November 1988, has, in its generosity, agreed to undertake and finance a project to build additional accommodation at the Terme di Caracalla site. The restructuring of the Caracalla complex will help to solve the problem of adequate accommodation for the future. However, in the meantime, the Organization is still renting additional office space on the private market in order to meet its interim requirements for headquarters accommodation, and may be placed in a similar situation at some time in the future.

His Excellency

Gian Luigi Valenza

Ambassador

Permanent Representative of Italy to FAO

Rome

In recognition of this situation, the Italian Government has generously accorded to the Organization for the last seventeen years a special contribution designed in part to offset the expenses incurred by the Organization in the rental of additional headquarters accommodation. However, it is our understanding that, in order to allow that these special contributions may be continued, on an interim basis, it will be necessary to provide a proper legal basis for the payment of such contributions.

In the light of the considerations set out above, I now have the honour to propose that such land and buildings as may from time to time be rented by the Organization, and as may be described in lists, drawn up with the concurrence of the Italian Government, shall be deemed to form part of Annex A to the Headquarters Agreement and shall thus be included within the definition of Headquarters Seat for the purposes of Article I, Section 1(f) of the Headquarters Agreement. It is understood that the Government will meet the entire rental cost of such rented Headquarters premises, and that such payment of rent shall be deemed to satisfy fully the Government's obligations under Article II, sections 3 and 4 of the Headquarters Agreement.

If this proposal is acceptable, I further propose that the present letter and your affirmative reply, prepared in the English and Italian languages, and the agreed lists, likewise in both languages, constitute a supplemental agreement as provided for in Article I, Section l(f)(ii) of the Headquarters Agreement, the English and Italian texts being equally authoritative.

Accept, Excellency, the assurance of my highest consideration.

ANNEX B

Rome 16 October 1990

Mr. Director-G eneral,

I have the honour to acknowledge receipt of your letter of 16 October 1990 which reads as follows:

"Excellency,

I have the honour to refer to discussions that have taken place between representatives of the Italian Government and of this Organization with respect to the extension, of the boundaries of the headquarters seat of the Organization, as a result of its occupation of land and buildings, for its institutional purposes, that are not covered by the current definition of the headquarters seat.

It is implicit in the Headquarters Agreement signed at Washington on 31 October 1950 that adequate accommodation would be provided to meet the needs of the new FAO Headquarters as the Organization developed. It was for this reason that Article I, section 1(f)(ii), while describing in some detail in Annex A to the Agreement, the land and buildings included within the scope of the term "Headquarters Seat", specifically envisaged the conclusion of supplementary agreements including other land or buildings within that scope. In accordance with these provisions, the Italian Government has, over the years, generously placed additional office accommodation at the Organization's disposal at the Terme di Caracalla site.

However, this accommodation has proved to be insufficient, and it has proved necessary for the Organization to rent further office space on the open market, in order to provide adequate accommodation for its headquarters staff.

Taking into account the above developments, the Italian Government, by Law No.. 506 of 3 November 1988, has, in its generosity, agreed to undertake and finance a project to build additional accommodation at the Terme di Caracalla site. The restructuring of the Caracalla complex will help to solve the problem of adequate accommodation for the future. However, in the meantime, the Organization is still renting additional office space on the private market in order to meet its interim requirements for headquarters accommodation, and may be placed in a similar situation at some time in the future.

H.E. Edouard Saouma

Director-General of FAO

Rome

In recognition of this situation, the Italian Government has generously accorded to the Organization for the last seventeen years a special contribution designed in part to offset the expenses incurred by the Organization in the rental of additional headquarters accommodation. However, it is our understanding that, in order to allow that these special contributions may be continued, on an interim basis, it will be necessary to provide a proper legal basis for the payment of such contributions.

In the light of the considerations set out above, I now have the honour to propose that such land and buildings as may from time to time be rented by the Organization, and as may be described in lists, drawn up with the concurrence of the Italian Government, shall be deemed to form part of Annex A to the Headquarters Agreement and shall thus be included within the definition of Headquarters Seat for the purposes of Article I, Section 1(f) of the Headquarters Agreement. It is understood that the Government will meet the entire rental cost of such rented Headquarters premises, and that such payment of rent shall be deemed to satisfy fully the Government's obligations under Article II, sections 3 and 4 of the Headquarters Agreement.

If this proposal is acceptable, I further propose that the present letter and your affirmative reply, prepared in the English and Italian languages, and the agreed lists, likewise in both languages, constitute a supplemental agreement as provided for in Article I, Section l(f)(ii) of the Headquarters Agreement, the English and Italian texts being equally authoritative."

In this respect, I have the honour to inform you that the above proposal is acceptable to the Italian Government which therefore agrees that your letter and this letter, both in Italian and English languages, and the agreed lists, likewise in both languages, constitute a supplemental agreement as provided for in Article I, Section l(f)(ii) of the Headquarters Agreement, the Italian and English texts being equally authoritative.

Accept, Mr. Director-General, the assurance of my highest consideration.

ANNEX C

LIST DRAWN UP ON 16 OCTOBER 1990 BY THE FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS (FAO) AND THE ITALIAN GOVERNMENT PURSUANT TO THE EXCHANGE OF LETTERS BETWEEN THE ITALIAN GOVERNMENT AND OF 16 OCTOBER 1990 REGARDING LAND AND BUILDINGS RENTED BY FAO AND INCLUDED, FOR THE PURPOSES OF ARTICLE 1, SECTION 1(f) OF THE HEADQUARTERS AGREEMENT, IN THE DEFINITION OF HEADQUARTERS SEAT GIVEN IN ANNEX A TO THE SAID AGREEMENT

1) Building "F"

Description

The entire building at No. 422 to No. 430/C, Via Cristoforo Colombo, Rome, such premises beingin private ownerhip and at present occupied by FAO and WFP.

2) Building "G"

Description

Offices at No. 4, Largo Antonelli, Rome, 6th floor, flats number 15/16/16a and 7th floor, fiat number 18, such premises being in private ownership and at present occupied by FAO.

3) Building"H"

Description

Offices at No. 440, Via Cristoforo Colombo, Rome, staircase B, 8th floor, fiats No. 23 and 24, such premises being in private ownership and at present occupied by FAO.

For the Food and agriculture
Organization of the United Nations

For the Italian Government

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