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12. Other Matters Arising from the Reports of the Thirty-Sixth Session of the Programme Committee, and the Forty-Third Session of the Finance Committee (Rome, 23 April - 4 May 1979)
12. Questions diverses relatives aux rapports de la trente-sixième session du Comité du programme et de la quarante-troisième session du Comité financier (Rome, 23 avril - 4 mai 1979)
12. Otros asuntos dimanantes de los informes del 36° período de sesiones del Comité del Programa y del 43° período de sesiones del Comité de Finanzas (Roma, 23 abril - 4 mayo 1979)

CHAIRMAN: We are going to take first Other Matters arising from the Reports of the Thirty-Sixth Session of the Programme Committee, and the Forty-Third Session of the Finance Committee, document CL 75/4.

You will note that under items requiring attention by the Council, there is Amendments to Rules XXVI-9 and XXVII-9 which are also covered fully by the CCLM report, and I suggest that we should not take this along with the Finance Committee but with the CCLM so that the Finance Committee input can be considered at the time we consider the CCLM report.

You will also note that in the report of the Programme Committee certain items such as the J1U report and the Inter-Agency Relations are covered by separate agenda items. Perhaps when the Chairmen of the two Committees come to introduce their reports they can isolate these items so that we do not go into them here but but at the time we consider the substantive agenda items.

M. TRKULJA (Chairman of the Programme Committee): As you have said there are some other things to be considered later on and one thing that has been already dealt with successfully by the Council, so I will limit my introduction to one point, a very important point, that is the Review of FAO Investment Activities, and then as indicated in the Report of the Committee a fairly broad, factual summary of the document was presented in our report so I will try now first to give you a summary of the summary and then I will only highlight some of the views of the Committee.

Review of FAO Investment Activities
Activités de la FAO en matière d' Investissement
Estudio de las Actividades de la FAO relacionadas con la inversion

M. TRKULJA (Chairman of the Programme Committee): First a very brief reference on the factual part. As a result of priority given to investment in agriculture by the Director-General since he took office, FAO's investment services have been considerably strengthened; developing countries and lending institutions are giving increasing priority to investment in agriculture. However, the ammounts involved fall far short of the investment requirements estimated by the World Food Council and there is a continuing need for well prepared investment projects. Main constraints are a critical shortage of trained manpower to identify, prepare and implement projects and the weakness of local institutions in many countries to ensure their successful follow-through.

FAO's instrument for investment promotion and support to developing countries is the Investment Centre, part of the Development Department. Its basic function is to help governments identify and prepare projects for financing. An important service provided by the Centre is the on-mission training. It goes to local counterpart staff investment project preparation with the objective of building up cadres of national staff able to identifiy, and prepare projects themselves. The Centre is continuously involved in studies aimed at improving the methodology of projects formulation and is currently working on methods to shorten the projects cycle. As you all know, the Investment Centre comprises multi-disciplinary staff divided into two main units, first the FAO-World Bank Cooperative Programme and the Investment Support Programme. The latter is responsible for Investment Centre activities with all financing institutions other than the World Bank.

Both staff and budget of the Investment Centre have grown considerably in the last few years, but the main increase has been to the Investment Support Programme whose rapid growth has been in response to the increasing requests from countries and Investment Centre assistance and an anticipation of the establishment of IFAD.

The Investment Centre's budget does not reflect FAO's full contribution to and involvement in investment work. For example, FAO's representatives support and advise Investment Centre missions in the field. The Investment Centre maintains close cooperation with the main departments and divisions of the Organization, and draws upon their staff for resources information for mission work and for project ideas.

Of the multilateral financing institutions the World Bank is by far the largest lender to agriculture and the major part of FAO's investment work carried out in cooperation with it. About one-third of World Bank agricultural lending is for projects identified or prepared by the Cooperative Programme. This proportion has been maintained in spite of the massive increase in bank lending to the agricultural sector over the past five years. In Fiscal 1978, loans for FAO-assisted projects approved by the Bank totalled $1.2 billion. An increasing number of these projects are for rural development, aimed at benefitting the small farmer. Project work under the Investment Support Programme involves cooperation with a number of financing institutions, most of which are relative newcomers to the field of agricultural investment, with relatively small resources compared with those of the World Bank. Because of IFAD's exclusive concern with agriculture and the rural poor, FAO has considered it of the highest importance to support the Fund in all its activities. In 1978 the Investment Centre was involved in half of the projects approved by the Fund for financing and expects to prepare more than half the fund initiated projects to be financed in this year, 1979,

The substantial increase in the capital resources of the three regional development banks can be expected to lead to a large expansion of their agricultural lending. This has already resulted in additional requests for Investment Centre assistance, A similar expansion on investment work is foreseen in cooperation with sub-regional financing institutions, national development banks and Arab funds. FAO has now concluded, or is about to conclude, agreements for cooperation with all major financing institutions concerned with lending to agriculture.

The Investment Centre has become a rapidly evolving unit of FAO, bringing to bear for development purposes sums of international finance vastly exceeding FAO's own relatively small financial means. In 1978, for example, investment resulting from the Centre activities totalled $3.7 billion, including loans of $1.3 billion, compared with the budget for the whole of FAO for the 1978/79 biennium of $211 million.

The Investment Centre has become heavily involved in the formulation of rural development projects and at the same time has been increasingly called upon to formulate projects in relatively new fields. In spite of these encouraging advances, a number of issues were brought to the attention of the

Programme Committee, perhaps the most important is the shortage of investment projects. The central concern of FAO must be the formulation of a pipeline of bankable projects. FAO has an extensive field- staff, a growing network of FAO representatives and a deep involvement, in pre-investment activities, especially through UNDP. Several initiatives have already been taken to help solve this critical problem. Besides the closer links established between the Investment Centre and other key units in FAO, partly in order to draw upon on their work for project ideas, an agreement has been concluded with UNDP by which the Investment Centre, in cooperation with other investment divisions, will closely monitor UNDP projects with investment potential and ensure that these are brought to the attention of the financing institutions. Also in order to use the limited resources of the investment support programme as economically as possible, the Centre has begun to mount project identification missions to certain countries jointly on behalf of several financing institutions. There is a serious problem, the capacity of many countries to implement investment projects. It is important that countries give priority to the establishment of project preparation units which can work full time on feasibility studies. FAO can assist in the training of such groups. The Investment Centre's main contribution is through their own on-mission training which it provides to national staff during project emulation.

With the increase in the number of cooperative agreements between FAO and financing institutes, there has been a mounting complexity in the operation of the Centre, particularly of the investment support programme, and there is increasing competition between the various institutions for its services. Some general guidance as to the use of staff under one or other of the various programmes is now necessary. The agreements between FAO and the financial institutions were entered into over a period of many years and reflect the differing needs of the institutions at particular times. The agreements are now being standardized as much as possible.

It is a very brief factual review, a summary of a summary, as I said, of the document provided by the Programme Committee, and now I will come very briefly to some of the basic findings of the Committee.

The Committee was pleased to learn from the well prepared and comprehensive document the rather spectacular results achieved by FAO in a couple of recent years. As the Director-General emphasized with some pride in his opening address to this Session, that FAO with relatively moderate increase in the Investment Centre resources was able to formulate projects approved by financing institutions for an amount of about $6 billion in the last two years; or nearly half of the amount of all projects formulated by FAO in the last 14 years. To the same extent the Committee was satisfied with the results achieved, especially smooth cooperation between FAO and the World Bank, demonstrated by the fact that the FAO identified or prepared about one-third of the project value financed by the World Bank.

In the view of the Committee the results should also be measured against the background of the established cooperation with an increasing number of international or national lending institutions which have recently appeared, such as IFAD, several Arab funds, sub-regional institutions, such as the Corporación Andina de Fomento, the East African Development Bank, and Caribbean Development Bank and of course continued cooperation with the three regional Banks and the fifty-six banks or lending institutions participating in the bankers' programme. The Committee recognized the complexity and indeed difficulties stemming from the cooperation with a growing number of institutions each pursuing its own lending policy and to a large extent also its own so-called investment methodology and procedure. In reviewing the FAO's role in the investment field, the Committee noted that FAO was not able to exert tangible influence on the policies of lending institutions in terms of sectoral priorities, and to some degree investment objectives, especially as far as large institutions were concerned. However, with this limitation in mind FAO on the basis of its vast experience and technical competence was in a position to influence quite substantially the composition and in the last analysis the soundness of projects. Proof of this could easily be found in growing competition among lending institutions for FAO services and indeed strong demand on FAO's limited resources. In this context the Committee expressed a general concern over the unduly slow and unnecessary complicated process of project preparation, including all stages from pre-investment studies to the approval of projects. It welcomed very much the study now under way in FAO intended to see how to speed up the process without undue detriment to the quality standard.

The Committee welcomed the measures already undertaken to ensure greater involvement of various technical divisions and units in investment work and urged further mobilization of overall FAO capacity towards investment. It especially stressed the TCP funds, increasing involvement of Country Representatives, and the greater use of staff at all levels, especially for investment missions, etc.

The Committee felt strongly that FAO should continue to attach high priority to investment so as to be able to follow the process of the increased allocation of funds, both national and international, towards agriculture and rural development, including some related activities such as agro-industries, rural infrastructure, storage facilities, etc. The Committee particularly emphasized the need for even closer cooperation with all institutions, notably the World Bank and IFAD. It noted that the World Bank was and would continue to be by far the largest lending institution with a high share (40 percent) of agriculture in overall fund allocations and urged the continuation of well established cooperation between FAO and the World Bank, including IDA. It also stressed the need for further strengthening of cooperation with IFAD taking into account special relationships, similarity of objectives and complementarity of functions between the two. The Committee, however, wanted to underline that despite high priority for investment FAO would probably not be able to meet fully the demand coming from lending institutions and governments especially in the next biennium. In connexion with this the Committee suggested that FAO should give priority to lending programmes on concessional terms, especially to those in support of development efforts of least developed and most serious affected countries, while to the extent possible trying to maintain proper regional balance. The Committee also suggested that the central concern of FAO should be to build up a pipeline of fundable projects, so that greater use should be made of UNDP-financed projects with investment potential as well as of FAO special action programmes. It welcomed ongoing FAO/UNDP effort to explore this possibility fully. It also urged intensification of so-called general identification missions, which combined requests of two or more lending institutions in a country. The Committee suggested further that despite some financial consequences serious thought should be given to the possibility of FAO's own identification missions with full involvement of FAO Country Representatives. Finally in this context the Committee wanted also to emphasize that FAO should take special care so as to avoid to the maximum possible extent donor orientation of its services. As the best way to achieve this important aim the Committee strongly suggested (a) that increased effort should be directed at assisting developing countries to build up their own capability to identify and prepare projects, and (b) that FAO, notwithstanding arrangements with lending institutions, should be first of all responsible to the governments of developing countries and thus FAO should have an independent voice in providing its advice to governments.

The latter moment is closely interrelated with the question of FAO's cost-sharing arrangements with lending institutions. The Committee unanimously agreed that FAO to maintain its indispensable independence in advising governments, and to be recognized as an equal partner, should as a matter of principle continue to bear a part of the costs through its arrangements with the institutions. While noting that the existing cost-sharing formulas differed appreciably from one case to another, as they have been concluded over a number of years and within the specific circumstances of each institution at that time, the Committee expressed the view that it was both desirable and necessary to ensure to the extent possible a far greater uniformity in cost-sharing arrangements as they came to the negotiating stage. The Committee also wanted to note that as the project cycle developed from identification through preparation to appraisal an increasing proportion of costs was and should continue to be borne by the institutions concerned. The Committee welcomed the fact that this principle had been generally applied, especially in recent years, and it encouraged the Investment Centre to pursue the same principle in the future.

Lastly, through established dialogue with the Secretariat the Committee explored to some extent the possibility of substituting gradually the individual project approach by a more comprehensive sectoral lending concept. In that respect the Committee encouraged the Investment Centre to invest more systematic efforts towards building up national institutions' capabilities to develop within the framework of a national plan a long-term development programme suitable to be presented to financial institutions for co-financing.

This is all I wanted to say on investment. As I said, there are a couple of other things, such as FAO/UNEP cooperation, which will be discussed tomorrow by the Council under item 14 and then the Council may wish to take into account the views of the Committee on the issue. UNDP support costs is another issue. You have seen from our Report that the Committee was fully informed about the development and that the Committee did not discuss at that stage the whole issue, since the Council will be fully informed and updated on what has happened since the last Session of the Council.

Lastly, I feel confident that the Council have already decided on the issue presented by the Programme Committee with regard to the discontinuation of the Ad Hoc Committee on Nutrition.

CHAIRMAN: Thank you, Chairman of the Programme Committee. The major item for discussion is the in-depth review of investment activities, which is for the Council's information. I attended the meeting of the Programme committee, and the review was very thorough.

As the Chairman of the Programme Committee just outlined, a paper was presented by the Secretariat and discussed, and then the Committee's views have been outlined in the Report and by the Chairman. The subject is now open for discussion.

RAMADHAR (India): I must compliment the Chairman of the Programme Committee on having given an excellent and comprehensive introduction to the subject. As you said, Mr. Chairman, we discussed this matter at sufficient length in the Programme Committee, and the Report of the Programme Committee has adequately high-lighted some of the major issues with regard to the Investment Centre. Therefore, I would not like to repeat what has been said by the Chairman of the Programme Committee on the Report. But I think it is appropriate that I should pinpoint certain major features.

The Investment Centre, as was unanimously agreed in the Report and as the Chairman of the Programme Committee has pointed out, has been doing excellent work on the cooperative programme with the World Bank which was set up in 1974 and the ISP since 1970. It has been playing its important role, particularly in recent years, which is very important. On one side it has been assisting developing countries in the identification and preparation of the projects in collaboration with financing institutions, but on the other side, which I consider more important, it has been working as a catalyst in stimulating the flow of greater resources for agricultural and food production.

As the Chairman of the Programme Committee has pointed out, one-third of the World Bank's agricultural lending for projects has gone to those projects which were prepared by the cooperative programme in 1978. In 1978 the cooperative programme assisted projects accounted for over one billion dollars and during the last fifteen years they aggregated to over four billion dollars. This collaboration and cooperation with institutions like IFAD, regional banks, sub-regional banks, and with other financing institutions and other institutions have been excellent. Also some innovative measures have been undertaken by the Centre like utilisation of UNDP and TCP resources for identification and preparation of the projects and its involvement in new areas like agro-industry, social forestry, nutrition, storage, prevention of food losses and food security programmes.

There arc certain other areas which are quite important and have been highlighted in the Report. The Chairman also pointed these out. There is competition between the various institutions for the resources of the Investment Centre. The competition between the various agencies for obtaining the resources of the Investment Centre fully highlights the importance of the Centre and the competence with which the Centre ha.s been working. This Council must endorse the recommendation of the Programme Committee that the resources of this Centre should be fully strengthened so that it is able to carry out its functions and to meet the commitments which it has been called upon to do by the various financing institutions. In this respect the ability of the Centre to make use of the consultants, particularly those from developing countries, is really commendable, because making use of consultants from developing countries will help the developing countries in two ways. On the one side, they will assist in identification and preparation of a greater number of projects; on the other, this will increase the sense of self-reliance of the developing countries and will assist in strengthening and improvement of the national institutions.

The other effort which the Centre is making and which needs particular attention is the detailed study being done by the Centre to reduce the time lag between the initiation stage, and the final preparation of the project, and we are looking forward very keenly to the results of this study.

As the Chairman has rightly pointed out, there has been one particular sphere which was discussed by the Programme. Committee, the donors' orientation of Projects, how far we could reduce this kind of orientation. This can be done by increasing the Investment Centre's independence and flexibility. We agree that the FAO lhas to share a proportion of cost of the mission in spite of the financial constraints, because this is one of the ways by which the donor orientation can be minimized. The other way could be increasing the capacity of developing countries in the project preparation, and this could be done by setting up of the units by the national Governments, with the support and assistance of FAO, particularly of the Investment Centre.

can say with the experience of India that we have set up in India a project preparation and monitoring cell, and I am quite happy to announce here that the FAO has been assisting us in organizing a couple of training programmes for the people engaged in the preparation and monitoring, and I think similar units in other developing countries could be of great help.

The third way by which the donors' orientation could be minimized is the increased strengthening of the FAO Bankers' Programme. The FAO has been providing excellent leadership and coordinating mechanism in the FAO Bankers' Programme, and we hope that the FAO will continue to do so because the FAO Bankers' Programme is quite important, and two-thirds of its members are the national development banks, and they can always play a very important role in stimulating agricultural investment activities within the national Governments.

With these words, Mr. Chairman, 1 must commend the Report of the Programme Committee and the Investment Centre in meeting this important need of the developing countries.

BULA HOYOS (Colombia): No tenemos dudas de que en esta nueva oportunidad el Consejo confirmará plenamente su apoyo a la conveniencia de reforzar los servicios de la FAO dedicados a incrementar las inversiones en la agricultura en los países en desarrollo.

Confirmamos igualmente la función básica del Centro de Inversiones, que debe ser la de ayudar a los gobrernos a identificar y preparar proyectos de financiación.

Destacamos también la cooperación que el Programa Cooperativo de la FAO viene ofreciendo al Banco indiai, una tercera parte de cuyos préstamos agrícolas los proporciona mediante proyectos identifi/?/ y preparados por nuestro Programa Cooperativo.

Desearíamos igualmente que ojalá el Centro de Inversiones estimule la política del Banco Mundial con tendencia acertada de orientar cada vez más sus préstamos hacia los pequeños agricultores y el desarrollo rural.

1 Consejo deberá destacar la necesidad de que la FAO continúe su pleno apoyo y estrecha cooperación con el Fondo Internacional de Desarrollo Agrícola, el PIDA. Ojalá que mediante la asistencia de la FAO el PIDA acelere un poco su marcha, que fue lenta en 1978, ano de la iniciación de sus actividades, y que ahora en 1979 se presenta relativamente más acelerada, ya que el PIDA ha comenzado a financiar proyectos que no son cofinanciados por el Banco Mundial ni los Bancos regionales, sino iniciados y financiados exclusivamente por el FIDA.

La delegación de Colombia ha estado siempre de acuerdo en que debe reforzarse la cooperación entre el Centro de Inversiones y los bancos regionales, particularmente ahora cuando esos bancos regionales están están aumentando sus capitales.

Por ello nos preocupa el desoenso de los préstamos al sector agrícola por parte del Banco Interamericano de Desarrollo, BID, de que se habla en el párrafo 2.137 del documento CL 75/4.

Lamentamos que la cooperación entre el Centro de Inversiones y el BID haya bajado al mínimo de cinco misiones en 1977-78.

Preguntamos a la Secretaría si este descenso se deberá al hecho de que la FAO retiró el personal que tenía en Washington en la oficina FAO/BID; y desearíamos saber también si, como se dice al final de este mismo párrafo 2.137 la FAO atenderá la reciente solicitud que ha hecho el BID para que le siga ofreciendo asistencia como nuestra Organización se propone seguir en cooperaoión con el Banco Interamericano de Desarrollo; es ouestión que interesa a la Delegación de Colombia.

Igualmente, siempre dentro de ese mismo orden de ideas, apoyamos la cooperación del Centro de Inversiones de la FAO con instituciones subrogionales, como la Cooperación Andina de Fomento, CAF.

Sobre las opiniones del Comité del Programa estamos de acuerdo con la idea que aparece en el párrafo 2.148 en el sentido de que la FAO prepare una cartera de proyectos que puedan interesar a los bancos y a las demás instituciones financieras. A esto se podrá contribuir particularmente a través de las misiones, sean conjuntas o separadas, tal como se habla en los párrafos 2.151. y 2.159.

La delegación de Colombia comparte la crítica que el Comité del Programa señala en el párrafo 2.153 sobre la lentitud de convertir una idea en proyectos susceptibles de financiación. Creemos que será necesario insistir ante las instituciones financieras para que ese proceso se acelere. Los gobiernos de los países en desarrollo suelen sufrir decepciones por este retardo y por esa lentitud.

Por conducto suyo, señor Presidente, desearíamos pedir al señor Presidente del Comité del Programa alguna explicación sobre la opinión del Comité del Programa que aparece en el párrafo 2.160, y al que el colega de la India se refirió en forma amplia y bastante adecuada, pero que aún para nosotros no está muy claro, por lo menos en español la primera parte del párrafo 2.160 sobre cómo se podrán atender mejor las necesidades de los países en desarrollo evitando que el Centro de Inversiones de la FAO se oriente en función de los donantes; ojalá se nos aclarara cuál es el alcance de la opinión del Comité del Programa.

EL Presidente del Comité del Programa se refirió igualmente a los párrafos 2.169 y 2.170 sobre gastos de apoyo del PNUD. Quisiéramos ahora reiterar la inquietud que ya expresamos cuando discutimos un punto anterior; si es posible se podría informar al Consejo, si tuvo ya lugar la reunión del grupo intergubernamental de trabajo del PNUD, cuáles fueron los resultados y si hay novedades sobre el curso que haya tomado la propuesta del administrador del PNUD acerca del cambio en los sistemas de reembolso.

Como lo dije en ocasión anterior, me parece muy importante esto, particularmente para los países beneficiarios*

La delegación de Colombia aprovecha esta oportunidad para expresar su simpatía y admiración al doctor Yriart, subdirector general, jefe del Departamento de Desarrollo, por la forma inteligente y capaz como el viene trabajando en las actividades de inversión, así como en la cooperación técnica entre países en desarrollo y los demás asuntos que dependen del importante departamente a su cargo.

Cumplo la honrosa misión del gobierno de Colombia de reiterar nuestro más pleno apoyo al doctor Yriart en el alto cargo que ocupa.

Finalmente, deseo también expresar mi reconocimiento al trabajo que han hecho los Presidentes de los Comités del Programa y de Finanzas, los distinguidos amigos M. Trkulja y Bel Hadj Amor, con ánimo constructivo; expreso la confianza de que en el futuro los informes de esos importantes órganos asesores del Conse¿o se redacten en el lenguaje sobrio y austero a que estamos acostumbrados hasta hace tres o cuatro anos.

L.V. BORGES da FONSECA (Brazil): My delegation has already stated its affirmative position with relation to the proposed Programme of Work and Budget for the next biennium. I would like, however, in this Session and in connexion with the Report of the Programme and Finance Committees to make some brief comments concerning a few items in document CL 75/4.

First of all, my delegation could not refrain from joining its voice to the commendment and satisfaction expressed by the Programme Committee for the active role played by FAO in helping countries fight against the African swine fever, and we are completely sure that those efforts will continue.

My delegation has already referred to the FAO activities on research support. However, as we are here in Italy and as an old Latin proverb says that "quod abundat non nocet", I would like once more to stress the great importance that my country gives to FAO activities dealing with research support in strengthening existing national institutions, and express again the desire of my delegation that the assurance contained in paragraph 2.48 of document CL 75/4 be also included in the Report of this Session of the Council, not only as an envisaged purpose but as a measure to be effectively carried out.

The other item my delegation would like to consider is the one related to fisheries. We feel the need to point out the necessity of reinforcing TCDC on this matter, mainly in view of the sea areas under national jurisdiction, as this last measure would, we believe, greatly help the improvement of social and nutritional conditions mainly for the coastal population of the developing countries.

As I am dealing with the subject of nutrition, I am very pleased to express here - as the Brazilian delegate has already done during the last session of the Committee on Agriculture - the complete support of my Government to the proposed inclusion of the item of nutrition on the agenda of the next session of the Committee on Fisheries.

Finally, Mr. Chairman, in asking your indulgence for this rather long intervention, my delegation would like to bring its support to the draft resolution recommended by the Finance Committee in paragraph 3.86 of its report, as well as the one conta ned in paragraph 3.132 of the same report, dealing respectively with the authorization to the Director-General to make certain borrowings, and with the appointment of the external auditor.

CHAIRMAN: Thank you, delegate of Brazil. You have jumped the gun a bit, but when we come to these items in the Finance Committee to which you have referred you will not have to speak!

Q.H. HAQUE (Bangladesh): I take this occasion to compliment the Chairman of the Programme Committee for his lucid presentation. We know that the subject is mainly for the information of the Council, but since the subject is very important we would like to offer a few comments. I also take note of the comments made by the delegate of India, who happens to be a very active member of the Programme Committee.

To our mind, the activities of the Investment Centre of the FAO are ones of which the Organization can be proud. In the investment activities in the sector of agriculture, one can very easily see from the figures, of the participation of the Investment Centre in FAO-World Bank operative projects, in the lending activities of the regional banks and of the IFAD, that it plays a very major role, not only as a catalyst, but also in the preparation of inputs for investment activities.

We know that the main area of cooperation has been, and is, the Investment Centre with the World Bank. The figures in paragraph 2.130 will stimulate anyone to compliment the Investment Centre, the highly trained professional staff under the guidance of a very able Director. We are happy to note that as expected in the Preparatory Commission of the IFAD, and then in the governing council of IFAD, cooperation between IFAD and FAO is growing very fast. Already the Investment Centre has collaborated with 50 per cent of the activities of IFAD and we hope it will grow further in the interests of both Organizations.

We find in paragraph 2.137 that investment collaboration of the Investment Centre with major regional banks is also growing, namely the African Development Bank and the Asian Development Bank.

A few observations have been made by the delegate of Colombia about the collaboration of the Investment Centre of FAO with the Inter-American Development Bank, and he has asked a few questions for clarification. I have read this paragraph very carefully a second time, and I understand the Investment Centre of FAO responds to the requests of the regional banks. In other words, the request is from the other end. If the request is there, FAO responds.

Just to judge if FAO has failed to respond, if you will read the last line of this paragraph, "To reach its new agricultural lending targets IDB had recently turned again to the Centre for assistance". That means that in the recent past they did not turn to the Centre, and that is why the investment collaboration of FAO with IDB has gone down since 1976. I will request the Chairman of the Programme Conmittee to clarify, but my reading of the paragraph is that since the Bank is not turning to FAO for collaboration it has gone down, but now it is turning again to the Investment Centre for assistance, it is growing again - and we hope, will grow very quickly.

In the presentation of the Chairman of the Programme Committee I noticed a few important points on which I would like to give emphasis. One is in paragraph 2.153 wherein you will find the suggestion that FAO could assist in the establishment and training of such groups through formal training courses, seminars, etc.; and on-the-job training mission activities. This is to help the developing countries in the identification and preparation of projects.

We know from the delegation of India that they have planning cells besides the Planning Commission in the Ministry of Agriculture. We also have started planning cells attached to other important ministries, including the Ministry of Agriculture, where we have a very strong planning cell which collaborates and advises and prepares projects. We feel here is an area where the Investment Centre could assist the developing countries in the identification and preparation of projects.

We very strongly endorse the idea in paragraph 2.153. Not all developing countries are fortunate enough to have trained planners. We are still looking forward and looking towards assistance from international agencies and others for assistance in the preparation of projects. It is a highly professional job which needs very trained personnel to prepare acceptable projects. This is an area where we emphasize FAO could come forward to assist developing countries.

The other idea is in paragraph 2.160 about the flexibility in the Investment Centre for helping the developing countries in field imvestment activities. We also very strongly endorse this paragraph.

We very strongly endorse the views of the Committee we find in paragraphs 2.148 to 2.163, and we compliment again not only the Centre for its activities but also the Programme Committee for a good job done.

SALMON PADMANAGARA (Indonesia): Like previous speakers, I also would like to commend the Programme Committee for its actions and work. As regards IEAD's role in investment, my delegation supports the idea that FAO should, to the largest extent possible, accelerate and enlarge the flow of capital investment to the agricultural sector in developing countries. Through the Investment Centre, FAO should enlarge the assistance to governments in its identifying and planning of projects for financing by various institutions, in particular IFAD and the other development banks.

My delegation notes with appreciation the contribution FAO has already made to the formulation of IFAD' s training policies and further, that the Investment Centre is interested in the task of monitoring the projects with investment potentials and bringing them to a reasonable state, and ensuring the interest of financing institutions. Experience has indicated it always takes a considerable time to convert a project idea into a bankable project. While the main responsibility for the preparation of project proposals rests with the government concerned, my delegation would like to point out, in concert with previous speakers, there is a critical shortage of planning experts to identify and plan projects. Training in this special field should therefore be taken up as a matter of urgency.

A. SCHWERRIA ZUNO (México); Ante todo quisiéramos agradecer al señor Presidente del Comité del Programa por la muy concisa presentación de las tareas realizadas en últimas fechas. La precisión con que se ha hecho, para nosotros no significa que sus trabajos y su atinada dirección no hayan sido importantes y detallados. Por el contrario, estamos perfectamente enterados de la acuciosidad con que estimula los temas en el seno de este importante Comité, y lo digo, porque nuestra delegación sabe que América Latina está bien y activamente representada en el seno del Comité, y además, es un conducto práctico y eficiente para que estemos bien informados aquellos latinoamericanos que no formamos parte del Comité del Programa.

Si bien las informaciones y detalles que nos ha proporcionado son para información, no queremos restarle en lo más mínimo la trascendencia de su contenido, tarea que tuvimos la oportunidad de subrayar por la muy atinada sugerencia de nuestro amigo el señor Sylla durante este fin de semana. Puede tener la seguridad de que cumplimos con su enmienda y seguimos la tarea que nos propuso.

Estamos absolutamente de acuerdo cuando en esta oportunidad se ha subrayado el énfasis en el rubro de las inversiones, y sobre todo, cuando están orientadas hacia los sectores rurales más deprimidos, más marginados, y donde tienen prioridad las actividades que por su naturaleza, por el tipo de campesinos pobres que a ellas se abocan y sobre todo, cuando el resultado de estos esfuerzos sea también prioritariamente la producción de artículos alimentarios que ocupen un lugar fundamental en las dietas nacionales y tradicionales, énfasis en el que no debe perderse la orientación de producir para que nuestros pueblos coman de acuerdo a nuestras culturas.

Como en otras ocasiones, debemos subrayar el importante instrumento que significa el Centro de Inversiones y el creciente papel que ha venido jugando. Las cifras que en esta oportunidad evitaré de decir por ser de todos conocidas, muestran efectivamente que en esta institución, y particularmente en este miembro de la FAO, la prioridad reconocida está siendo implementada poco a poco. El Centro de Inversiones es un promotor, también es un catalizador que acude cada vez con mayor frecuencia a esta tarea y que ha respondido con la flexibilidad y la prontitud que su propia capacidad le ha permitido. Por eso subrayamos alguna observación en el sentido de prepararlo, de dinamizarlo de tal manera que, en el futuro, sí sea cada vez capaz de atender las tareas propias de las demandas de servicio y de' asistencia que recibirá.

En el transcurso de los intercambios que estamos desarrollando, destaca la insistencia de que cada vez se utilicen a las instituciones nacionales, a las regionales también, sin olvidar que la estrategia de invitar, de convocar y de hacer participar a los profesionales de los países en desarrollo es muy importante, y cuando expresamos esto, entendemos que no solamente es como una tarea de acompañamiento de otros expertos sino también de responsabilidad en las tareas fáciles, pero también acceso a las más complicadas. Qué mejor escuela que la de la práctica y la de la trasferencia de conocimientos para esta difícil y complicada tarea. También se puede desprender que existe una importante dicotomía. Por un lado, desprendemos que en todo tipo de instituciones hay recursos y a veces con cierta ironía se informa que sobran, que están en las casetas de los bancos y de las instituciones financieras esperando proyectos, y por otra parte, se nos dice que hay muchos proyectos en cartera que no son atendidos. Sobran recursos por una parte, pero también sobran proyectos. Nudo importante que exige esfuerzos metodológicos y aptitudes para resolverlos. Nosotros pensamos que en materia de proyectos, obviamente los beneficiarios tienen que hacer un esfuerzo. Por eso pedimos ayuda y asistencia para capacitar a nuestros hombres y a nuestras mujeres y para desarrollar nuestras instituciones, pero hay experiencias recientemente que oreemos no son utilizadas en toda su magnitud, y por otra parte, no es nuevo, pero queremos subrayarlo y que quede sembrado en este Consejo, las experiencias metodológicas crecen sobre la marcha. Creemos que no hay que diferir lo urgente por lo importante. Es decir, pensamos que en materia de identificación y preparación de proyectos puede reinar la confianza y sí prestar énfasis en los momentos de la ejecución y del seguimiento de los proyectos con esto que estamos acostumbrados a reconocer como la flexibilidad, y tener la oportunidad de rectificar sobre la marcha.

Nuestra delegación, tanto en el seno de los órganos de Gobierno del Fondo Internacional de Desarrollo Agrícola como en esta Institución, ha expresado repetidamente que no hay nada más natural y lógico que la verdadera e intensa cooperación entre ambos. En el FIDA, organismo singular por su origen y sus características y orientación, requiere gor su tamaño y especialidad de la comprensión y de la colaboración, sobre todo en estos primeros anos, de organismos importantes como la FAO.

Como todos saben, México tiene el honor de ser miembro de su Junta Ejecutiva y también, como todos saben, hasta ahora todos los proyectos que allí se han financiado han sido por la vía de cofinanciamiento. Esperamos que quizá para fin de ano o principios del que sigue, tengamos la primera experiencia. En esta misma Mesa, hay colegas que trabajan intensamente en esa Junta Ejecutiva y con una gran espectación esperamos tener esa novedad, como digo, por primera vez a fines de este ano o en el transcurso del que sigue.

Creo que este Consejo debe subrayar que en el FIDA los países en desarrollo tienen un importante instrumento! pero que debemos proceder con la ayuda, con la orientación y con la solidaridad de la FAO.

Por último, señor Presidente, quisiéramos subrayar que en materia de inversiones la PAD debe seguir jugando un papel importante. La capacidad técnica e informativa de que dispone la obliga, y estamos de acuerdo en que equitativamente deben ser compartidos los costos y los esfuerzos y creemos que no hay razón para que la FAO pierda su identidad, sino por el contrario, creemos que debe seguir distinguiéndose como hasta la fecha.

M. NGA-MA (Zaïre): Ma délégat ion voudrait pour commencer féliciter le Président du Comité du programme d'avoir résumé la question que nous examinons.

Au sujet de l'investissement, ainsi que nous l'avions souligné le premier jour de cette session, ma délégation note avec plaisir que le Centre d'investissement de la FAO a réalisé un véritable bond en avant durant ces deux dernières années. Nous ne pouvons qu'encourager une telle évolution et souhaiter que la FAO continue de renforcer les liens très positifs et opérationnels qu'elle entretient avec la Banque mondiale, avec le FIDA, et avec les banques régionales de développement.

Ma délégation estime elle aussi que la FAO devra arriver à utiliser le projet du PNUD de manière plus vaste. Nous estimons nous aussi que l'on doit mettre à la disposition de la FAO tous les moyens nécessaires pour aider les pays en développement à identifier et à préparer leurs propres projets.

En un mot, ma délégation appuie sans réserves les points de vue exprimés par le Comité du programme dans les paragraphes 2.148 à 2.163.

Pour terminer, ma délégation pense que si l'on doit citer l'existence de structures locales trop faibles dans certains pays en développement comme étant un des obstacles à la promotion des investissements dans ces pays, ainsi que cela est dit au paragraphe 2.118 du document, nous pensons qu 'on ne devrait pas perdre de vue la nécessité pour la FAO de continuer à aider ces pays afin de surmonter ce genre d'obstacles.

Enfin, nous appuyons ce qui a été dit par le distingué délégué du Mexique, à savoir que la FAO doit jouer un rôle de premier plan en matière d'investissement.

H. MOKHTARI (Algérie): Permettez-moi de remercier le Président du Comité du programme pour l'exposé très complet qu'il nous a fait sur cette question. Je ne reviendrai pas sur ce qui a été déjà dit, et je serai donc très bref, comme vous l'avez suggéré, Monsieur le Président.

En matière d'investissement, le rôle du Centre d'investissement pour promouvoir et renforcer les investissements orientés vers l'agriculture des pays en développement est, à notre avis, d'une importance primordiale. Elle est d'une importance primordiale car le grand problème qui se pose aux pays en développement est celui justement de l'identification et de la préparation des projets en vue de leur financement. Dans le cadre du programe de soutien aux investissements, le Centre a la possibilité d'identifier et de préparer des projets pour le compte des pays en développement. Aussi, il convient de renforcer le Centre d'investissement parce qu'il répond à nos besoins.

D'autre part, ma délégation se félicite de l'orientation de ces investissements en faveur des petites exploitations et du développement rural, et partage les vues du Comité du programme contenues dans les paragraphes 2.148 à 2.163 du document soumis à notre examen et plus particulièrement dans le paragraphe 2.160 sur lequel ma délégation voudrait avoir quelques indications sur les mesures que compte prendre la FAOpourune plus grande indépendance du Centre dans l'orientation de ces investissements.

A.I. BOKHARI (Saudi Arabia) (interprétation from Arabic): It would appear that the Investment Centre represents one of the key problems discussed by this Council and especially delegates of developing countries. I think that this indeed reflects the hopes nourished by the developing countries for this Development Centre. One of its main tasks which we find reflected in paragraph 220 and following, echo this. These tasks referred to in these paragraphs show our interest in this.

We would like to congratulate the Committees for their work on this and also to thank the Chairman of the Programme Coamittee for the very clear and concise way in which he introduced this item.

A number of questions in this report aroused the interest of previous speakers, and I too would like to offer a few remarks. Paragraph 2#130 reflects the fruitful cooperation between our Organization and IFAD through the Investment Centre. Such cooperation, we feel, has enabled FAO, through its Investment Centre, to participate in the preparation of fifty projects which have been jointly financed by IFAD and other financing agencies. We are very proud of this cooperation, and, as we have said here and elsewhere, this is a cause for great pride; we have said this at the IFAD meeting too.

On paragraph 2.139 it says that FAO has cooperative agreements or letters of understanding with the Arab Fund for Economic and Social Development. Here we should like to have further information on this at the next Council meeting, on what in fact has been achieved within the framework of what we read in paragraph 2.139. This is a question which is of more direct interest to the group of Arab countries and the Near East Region.

In paragraph 2.140 we read that so far only one project has been financed under the terms of joint financing or co-financing between the World Bank and the Arab Development Bank. We say that the Organization should highlight the need for support to be given to development projects in the Near East Region. We are convinced that these projects will play a clear role in the agricultural development in that area. we should be given considerable details of what has been done in this context.

We should like to say how much we support the terras of paragraph 2.150 because it is indeed essential that we should define the key outline of this matter, that is the use of staff for the various programmes decided upon. we read here that the Organization may well indeed be in a position to participate in these activities but we should like to know the actual share or role of the Centre in these two particular fields of activity referred to in paragraph 2.150 and also in paragraph 2.153.

Before I go on to the document CL 75/l5, we would like to ask the Secretariat whether this document is available in Arabic because we have not received a version in Arabic, although it seems to have been published in all the other working languages. I very much hope that the Secretariat will have time to arrange this before tomorrow, so that we may join in the discussions with full "connaissance de cause''.

S. AIDARA (Sénégal): Beaucoup de choses ont été dites et très bien dites à propos du Centre d'investissement de la FAO. Je ne m'étendrai donc pas sur ce qui a été dit.

Je voudrais simplement rappeler ici l'importance du Centre d'investissement pour les pays en développement. Le Sénégal, pour sa part, est particulièrement sensible au rôle de ce Centre d'investissement. Nous pensons que le.Centre devrait continuer à concentrer ses efforts dans trois directions essentiellement. D'abord, aider les pays en développement à identifier et à préparer leurs projets, en incluant le plus possible dans cette démarche les cadres nationaux disponibles. Ensuite, aider les pays en développement à surveiller et à contrôler les projets d'investissement une fois qu'ils ont été mis sur pied. Enfin, étendre et développer la coopération avec les institutions de financement, et notamment la Banque mondiale,la Banque africaine de développement, et le FIDA, avec lequel le Centre a entrepris déjà des relations que nous souhaitons voir se développer.

Nous voudrions, pour terminer, féliciter le Président et l'ensemble du Comité du programme pour le travail effectué et pour le document pertinent fourni dont nous avons plaisir ici à appuyer les grandes lignes.

H.L. CLAVARIE R. (Venezuela): La delegación de Venezuela, señor Presidente, se complace muy especialmente en felicitar por su intermedio al colega y amigo Trkulja, Presidente del Comité del Programa, no sólo por el sobrio y serio informe que nos ha presentado de nuevo en esta ocasión, en relación a la última reunión de este Comité, la número 36, sino por su interesante y concisa intervención de esta mañana relacionada con las actividades del Centro de Inversiones de esta casa.

Como delegado de mi país, señor Presidente, en el Comité del Programa hemos estado en posición privilegiada para conocer a fondo las diferentes materias que este Organo ha venido tratando y para hacer oír nuestras opiniones sobre las mismas.

Nuestra delegación apoya ampliamente la forma positiva como se viene desarrollando la acción de inversión de la FAO, y en este sentido nos complacemos en apoyar muy ampliamente al señor Subdirector Generalf Jefe del Departamento de Desarrollo de esta Organización, por la forma en que viene diseñando y dirigiendo estas actividades. Nuestras congratulaciones más sinceras al señor Yriart.

La delegación de Venezuela apoya lo descrito en los párrafos 2.48 a 2.63 del documento, los cuales reflejan las prioridades de las actividades de inversión del Centro. Otorgamos nuestro apoyo a la relación de colaboraciones con las Instituciones Financieras Internacionales, y especialmente con el PIDA, Organismo primordialmente caro a Venezuela y particularmente caro a nuestra delegación.

Día a día nos complace testimoniar el avance de las buenas relaciones entre el FIDA y la FAO y auguramos que estas relaciones continúen desarrollándose sobre las mismas bases.

Igualmente nos complace comprobar la forma como se adelantan las relaciones con el Banco Mundial, de Reconstrucción, de Fomento y los Bancos Regionales de Desarrollo. Apoyamos ampliamente estas actividades.

J.A. BAKER (United States of Anerica): I can be brief because I can associate myself very much with what my colleague from the Venezuelan delegation, who is also my colleague on the Programme Committee, has said about this matter. I think it was a very appropriate subject for examination by the Programme Committee. The paper we had was useful, the contributions by the Secretariat very helpful, and it was the kind of discussion at the Programme Committee can most usefully have.

I would particularly like to commend the Organization for some of the new ideas that emerged from this discussion. The efforts that Mr. Yriart and the Investment Centre are making to get attention to the concept of sector lending; the sub-sector lending approach; encouraging countries to develop a longer term approach to problems in agriculture that can attract the attention and lending institutions. Some of the technical assistance work that has been done as related to development projects, are especially commendable.

By the same token the constructive pressure that FAO is putting on throughout the system to get better linkage betwen technical assistance and investment is very positive and perhaps the country representatives will have a high priority role to play in this regard. I know in some cases they have played a role in United States AID activity by calling to our attention certain pre-investment work, which was worthy

of further development. Generally, when the Investment Centre goes to a country, it will seek to interest more than one institution in the identification work. So we are generally pleased to see the priority and imagination that is being applied in this area.

We have a few ideas which we have expressed in the Programme Committee. For one thing we would give less-priority to the launching of identification missions with Investment Centre or TCP funding in cases in which there is no immediate expression of interest or prospect from financing institutions.

We have also put forward the idea that in view of the competition for the Investment Centre services the Investment Centre can stretch its funding to good effect, and it is clearly doing this with the encouragement of the Programme Committee. I think many of us here, want to transfer as much as possible of the cost burden of missions to the investing institutions. This recommendation emerges from the Programme Committee Report and in our view it is appropriate emphasis, particularly as the FAO moves into more uniformity in its agreements with the lending institutions. We think that especially when the project has reached the preparation stage, given the high quality involvement of FAO's experts, the independence of these inputs is well assured, even if it is a very small part of the financial cost burden.

Finally, I would like to join voice in complimenting the FAO for the development of its relationship with IFAD. We hope that relationship strengthens further; we feel that IFAD and FAO are natural partners and that is a very positive development for the future of both institutions.

CHAIRMAN: As we have now completed the list of speakers we shall go back to the Chairman of the Programme Committee and his colleagues. But before that I would like to call on the Secretary-General to reply to the specific questions raised by the delegate of Saudi Arabia on documentation.

LE SECRETAIRE GENERAL: J'informe le représentant de l'Arabie Saoudite qui a soulevé cette question que l'accord entre la FAO et le FIDA existait déjà à l'Appendice H du Rapport de la soixante-douzième session du Conseil.

Ce texte n'a pas été reproduit car le réajustement qui a été demandé à partir du texte anglais ne concerne que les textes français et espagnol. Par conséquent, le texte arabe, dont j'ai ici une copie à disposition, n'est pas touché par ce réajustement.

M. TRKUL.TA (Chairman, Programme Committee): I feel that especially the delegate of Colombia wanted me to clarify the thinking of the Programme Committee on the subject contained in paragraph 2.160. He mentioned that something might be wrong with the Spanish text only but since the same issue has been raised by the delegate of Algeria I will try to clarify this.

We discussed the programme of donor orientation or donor biases, and a number of members were very much interested, including myself, in the role of FAO in cooperation with lending institutions. We realize, of course, that the overwhelming objective of FAO in cooperating with lending institutions should be to maximize the investment resources of agriculture and that in doing so FAO should not be a passive partner of the lending institutions, that they should not just follow blindly their requests, but should be very keen to have a full independence, since after all that is one of the basic reasons why FAO should bear part of the costs. It should be independent and very much concerned with the interests of the governments themselves first of all. So we did not discuss in detail the kind of biases. But whatever they may be, in the view of the Committee FAO should be very sensitive first to the interests of government concerns and should recognize that it is first of all an agent of the governments and then to the extent possible there should be cooperation with the financing institutions. That is the essence of the view of the Committee on the issue.

I would like to thank members of the Council for the kind words which they expressed to the Programme Committee. As I said before, we will continue and we will not spare our efforts to serve the Council in the best possible way. Some other points will be reflected by Mr. Yriart.

J.F. YRIART (Subdirector General, Departamento de Desarrollo): Creo que podré ser muy breve. Agradezco -también las manifestaciones de apoyo a la labor del Centro de Inversiones y lo único que puedo hacer es, como se lo dijimos al Comité del Programa, reiterar aquí que con la guía del Director General no hay duda de que nuestra labor en materia de inversiones está primordialmente orientada a asistir a los gobiernos y que todas las decisiones que se toman están bajo esa orientación.

Nuestras relaciones con los organismos de financiamiento son fundamentalmente importantes, pero, sin embargo, más importante es el hecho de que el fin del trabajo del Centro de Inversiones es asistir a los gobiernos a identificar proyectos, a prepararlos y, en general, a lograr esas inversiones. Por eso también, además del Centro de Inversiones, hay otras actividades de la FAO, por ejemplo, del Departamento de Asuntos Políticos, Económicos y Sociales que también están cada vez más orientados hacia la materia de seminarios, preparación de proyectos, preparación de profesionales, etc.

EL distinguido representante de Colombia y también el distinguido representante de Bangladesh se refirieron a una mención que se hace en el informe del Comité del Programa sobre las relaciones con el Banco Interamericano de Desarrollo. Creo que ésto es un tema más que requiere respuesta.

Es cierto que disminuyó en materia de montos de inversión la cooperación del Centro de Inversiones con el Banco Interamericano de Desarrollo; personalmente no creo que esa disminución haya sido consecuencia de la decisión tomada por el Director General y el Presidente del Banco Interamericano de trasladar a nuestra sede el poco personal que teníamos destacado en Wáshington hasta mediados de los anos 70. el fondo oreo que también el Banco Interamericano reconocía que dentro de nuestra manera de trabajar ese personal dedicado a la labor con el Banco Interamericano estaría mejor apoyado técnicamente en la sede a que sólo tres o cuatro profesionales estuvieran destacados dentro del Banoo Interamericano.

La disminución de las inversiones en la cartera agrícola del Banco Interamericano nada tiene que ver con la amplitud de la colaboración con la FAO; no creo oportuno aquí discutir problemas que son del Banco Interamericano, pero sí puedo hacer esta afirmación, y la realidad es que últimamente en el Banco Interamericano se han puesto condiciones de gran aumento, como lo hemos /?/enoionado, de inversiones en el sector agrícola. Es en ese sentido que el Banco Intermoerioano tendría deseos, al igual que nosotrs, de acrecentar la colaboración. Hemos tenido hace tres semanas una visita, durante varios dìas del Director de la División Agrícola del Banco Interamericano, acompañado por un consultor que es quien en los últimos meses, ha estado principalmente asesorando al Presidente del Banco Interamericano sobre inversiones agrícolas y problemas que había encontrado en esa materia el Banco.

Quiero decirle, señor Presidente, que yo creo que hemos tenido una fructífera y cordial semana trabajando aquí con ellos y han tenido acceso a todos los programas que ejecutamos y en este momento esta-nos pendientes de una selección que haría el Banco Interamericano de proyectos que solicitaría formule la FAO y que en base a esa colaboración, a los resultados de esa colaboración, se tomarían decisiones mayores o posteriores sobre la entidad de la colaboración futura.

Debo sin embargo decir que los procedimientos del Banco Interamericano tal vez por ser el más antiguo y ciertamente el que tiene hasta ahora la mayor cartera de inversiones en la agricultura, y en general, los procedimientos son bastante diferentes a los de los otros Bancos regionales, y en ciertos aspectos también difieren de los procedimientos que naturalmente sigue el Centro de Inversiones en su colaboración con el Banco Mundial y con los otros Bancos Regionales. Así que tenemos sumo deseo ambas partes de poder adaptar nuestra colaboración, pero tendremos que volver posteriormente a infoi-mar a ustedes de estas experiencias que vamos a hacer próximamente.

También estoy seguro que en futura ocasión, al informarles sobre nuestra colaboración con el Banco Interamericano, será también oportuno informarles más detalladamente, como ha solicitado el distinguido representante de Arabia Saudita, sobre la colaboración con algunas de las instituciones árabes de finaneiamiento.

Finalmente quisiera, con respecto a la intervención del distinguido representante de Estados Unidos, asegurarle que, como nos ha recomendado la 19a Conferencia de la FAO, verdaderamente no iniciamos labores en el ciclo de identificación y formulación de proyectos sin tener una idea de que existe en principio interés por una institución de finanoiamiento. Esto, afortunadamente, es una cesa que hemos podido hacer bien porque hay gran deseo de obtener proyectos, así que éste es un servicio de utilidad que podemos prestar a los gobiernos; es decir, aproximándose los gobiernos a la FAO para buscar su a-poyo en la identificación o formulación de proyectos, nosotros podemos, si es necesario, si no tiene esos contactos el gobierno, podemos actuar un poco de agentes para ver el interés de las instituciones de financiación; en general lo hemos logrado, y por lo tanto, al hacer una inversión en identificación y formulación ya tenemos una razonable certeza de que el proyecto, o algunos proyectos identificados obtendrán financiación.

Finalmente el señor West es el que se ocupa del tema de los gastos generales de las agencias y lo tratará él posteriormente. No sé si el señor Presidente desea que el señor West responda ahora a las preguntas formuladas.

CHAIRMAN: I think it would be more convenient to all concerned if Mr. West dealt with this later. This subject is a very important one and quite rightly the Council has spent one and a half hours on it. The result is that members endorsed the work being done by the Organization in this field, and some very useful suggestions have been made for improvements which I am sure the departments and the regions concerned will take note of. We will now go to the rest of the agenda item. We have said that the Amendments to Rules XXVI-9 and XXVII-9 will wait until we come to the CCLM. I suggest that we take the other items listed one by one so that we can help the Secretariat and the Drafting Committee in preparing the report, rather than taking the whole bunch and perhaps confusing them. If you agree to this I will call on the Chairman of the Finance Committee to introduce the points.

- Financial position of the Organization
- Situation financière de 1 'organisation
- Situación financiera de la Organización

- Scale of Contributions, 1980-81
- barème des contributions de 1980-81
- Escala de cuotas para 1980-81

- Authority to Borrow
- Autorisation d'emprunter
- Autorización para contraer prestamos

M. BEL HADJ AMOR (Président du Comité financier): Je crois que je suis tenté de rationaliser tant soit peu la présentation des questions qui doivent être soumises au Conseil, et je suggère de ne pas suivre tout à fait ce qui est inscrit au document CL 75/OD/6.

Ce que je me propose de faire en premier lieu c'est de présenter les questions qui demandent une décision du Conseil, ensuite je passerai aux questions qui sont pour information importante et finalement j'aborderai les autres aspects.

Je commencerai donc par les contributions et ensuite j'aborderai le Rapport de la Commission de la fonction publique internationale; en troisième lieu, j'aborderai la nomination du Commissaire aux comptes et enfin les locaux au Siège. Pour terminer,j'en viendrai au Rapport annuel sur l'exécution du budget en 1978, et concluerai par les "Autres aspects".

Si vous permettez, je commencerai par la question des contributions qui figure aux paragraphes 3.55 à 3.64.

Nous avons un tableau page 39 du document CL 75/4 qui illustre la situation des contributions au 30 avril 1979. Ce tableau est mis à jour dans le document CL 75/LIM/l distribué au cours de cette session et faisant le point au 31 mai 1979. Il est à compléter par les- éléments qui me sont parvenus ce jour. Je précise à cet égard que depuis la fin du mois de mai 14 pays ont versé des contributions, que ce soit au titre de l'année 1978 ou au titre de l'année 1979. Pour qu'il n'y ait pas de commentaires superflus de la part des membres du Conseil, je voudrais vous donner la liste de ces pays. Il s'agit de: Algérie, Bangladesh, Barbades, Bulgarie, Costa Rica, Tchécoslovaquie, République fédérale d'Allemagne, Libye, Namibie, Norvège, Pérou, Somalie, Soudan, Syrie. Il est fort possible que certains autres pays aient déjà fait les démarches nécessaires pour payer leur contribution. Cependant, il faut prendre en compte les difficultés des formalités bancaires qu'on peut rencontrer et qui ont fait que l'Organisation n'a pas encore reçu les avis de versement concernant ces contributions ultérieures. Aussi, si jamais le nom d'un pays manque sur la liste additive que je viens de vous communiquer, c'est une question peut-être de retard dans les transmissions des avis bancaires.

Je voudrais également rectifier les tableaux qui nous sont présentés au document CL 75/LIM/l. Au tableau du paragraphe 2, il faudrait changer le chiffre concernant les contributions reçues jusqu'au 18 juin pour 1979. Le chiffre 3 605 317 devient à ce jour 6 021 217,58 dollars.

D'autres changements seront également à souligner, en particulier dans le tableau qui nous est présenté au paragraphe 3 du document mentionné et je me réfère au deuxième volet de ce paragraphe, à savoir les recouvrements des cinq premiers mois. Le chiffre indiqué pour 1979 de 45 159 922,74 dollars devient 51 305 840,59 dollars.

Il faudra également changer le chiffre du troisième volet du même paragraphe, à savoir les montants restants dus, non plus au 31 mai 1979 mais au 18 juin 1979 (je me réfère toujours à l'année 1979). Le chiffre de 66 751 892,86 deviendra 60 605 975 dollars.

Enfin, dans le troisième tableau concernant le pourcentage des contributions courantes recouvrées et figurant au paragraphe 4, pour la comparaison avec les années 1977-78, le chiffre de 1979 n'est plus de 38,86 mais il devient 44,62 pour cent.

Toujours concernant le document CL 75/LIM/l, je voudrais attirer l'attention du Conseil sur le paragraphe 8 qui parle du cas du Lao. Je voudrais préciser au Conseil que cette question a été également soulevée et mentionnée dans le rapport de la quarante-deuxième session du Comité financier, au paragraphe 2.9.

Enfin, il y a une petite rectification à souligner à l'Annexe A, page A.2. Il faudra mettre devant Nicaragua la petite lettre b).

A la suite de ces précisions, je voudrais, toujours à propos des contributions, souligner quelques observations du Comité. En effet, le Comité constate que malgré le recouvrement effectué après la réunion du Comité le taux, comme vous avez pu le noter, reste inférieur à celui des années précédentes et le rythme des versements demeure assez lent. Le Comité voudrait souligner au Conseil sa préoccupation devant cette situation et recommande au Conseil d'exhorter les Etats Membres à régler sans retard leurs obligations. Vous avez ces remarques aux paragraphes 3.57 et 3.58. D'ailleurs, cette recommandation du Comité au Conseil est encore plus urgente pour les pays qui doivent régler des arriérés de contribution et qui risquent de perdre par là leur droit de vote à la vingtième session de la Conférence si la date d'échéance n'est pas respectée avant la Conférence. La référence pour cette recommandation est faite aux paragraphes 3.59 à 3.62 du rapport du Comité ainsi qu'aux paragraphes 6 à 8 du document CL 75/LIM/î.

Le Conseil est prié de constater à ce propos que le cas dTun des huit pays concernés reste particulièrement alarmant (il s'agit du paragraphe 3.60) qu'un autre pays a entrepris les démarches nécessaires pour résoudre le problème de ses arriérés, (et vous avez mention de ce fait dans le document CL 75/LIM/l) et enfin, qu'un troisième pays a réglé, à la satisfaction du Comité, tous ses arriérés. Cela figure au paragraphe 3.62.

Il y a encore une mention spéciale qui devra être faite pour Grenade, qui figure parmi les huit Etats Membres qui ont des arriérés de contribution. Le Comité trouvera, à l'Annexe A du document CL 75/LIM/l l'état des arriérés ainsi que le dû pour 1979. En date du 11 mai, l'Organisation a reçu un message du Ministre des finances de Grenade qui faisait état des difficultés financières du pays et demandait à l'Organisation d'envisager la possibilité d'une dérogation et de renoncer à tout ou partie de la dette du pays, étant donné que les circonstances qui ont occasionné l'accumulation de cette dette étaient indépendantes de la volonté de l'administration actuelle. Dans sa réponse, l'Organisation a précisé que cette procédure n'a pas de précédent et que le Règlement ne la prévoit pas. Cependant, la Conférence a approuvé dans le passé les recommandations du Comité des finances et du Conseil dans le cas de certains pays, proposant aux gouvernements concernés de régler leurs arriérés de contribution en dix tranches annuelles tout en s'acquittant à échéance de leurs contributions durant l'année de leur recouvrement. Au cas où Grenade accepterait cette suggestion, le Comité financier en septembre et le Conseil en novembre seront saisis de cette question. Autrement, la requête de Grenade sera soumise à la vingtième session de la Conférence. Il est à préciser que Grenade risque de perdre son droit de vote si le retard dans le paiement persiste. L'Organisation attend encore la décision du Gouvernement de Grenade.

Voilà ce qu'il en est pour les contributions courantes et les arriérés de cotisations. Je voudrais continuer encore avex: la question des contributions avant de donner la parole aux membres du Conseil et attirer l'attention sur le cas du Samoa-Occidental (par. 3.63, 3.64). Le Conseil voudra bien noter que la quote-part du nouvel Etat indépendant du Samoa*Occidental est fixée au minimum, à savoir 0,01 pour cent. Enfin, c'est le dernier volet concernant les contributions, il s'agit du barème des contributions de 1980-81, paragraphes 3.74 et 3.75. Le Conseil note qu'il est invité à soumettre à la Conférence le projet de résolution du paragraphe 3.75 concernant le barème des contributions de 1980-81 objet de l'Annexe C du document.

Le Comité financier voudrait souligner à cet égard le cas du Viet Nam (par. 3.78 et 3.79) et précise qu'il ne s'agit que d'une question de conformité avec les décisions de l'Assemblée générale et que les changements intervenus pour d'autres Etats ne sont que les résultats des calculs utilisés par l'Organisation dans des cas semblables.

Enfin, il est à préciser que le barème pourrait être retouché en cas d'admission de nouveaux membres par la Conférence à sa vingtième session.

Je crois qu'il est logique, puisque nous parlons de contributions, et également des difficultés de recouvrement des contributions, de lier à cette question des contributions l'autorisation d'emprunter qui est soumise au Conseil aux par. 3.81 à 3.86. Là, le Comité soumet au Conseil une recommandation pour l'adoption d'une résolution autorisant le Directeur général à emprunter, en cas de difficultés, de notre situation financière, pour les raisons et dans les conditions stipulées aux par. 3.81 à 3.86. J'espère que les détails qui sont donnés dans les paragraphes que je viens de mentionner sont suffisants pour permettre au Conseil l'adoption de cette résolution. Avant de continuer, je voudrais bien rendre la parole au Conseil et savoir s'il y a des éclaircissements à demander ou des compléments d'information à fournir.

P. VANDOR (Hungary): The Council has before it a draft resolution on the Scale of Contributions 1980-81 to be submitted to the Conference. My delegation notes that the Scale of Contributions set out in the Appendix of this draft resolution is derived directly from the United Nations Scale of Assessments for 1979, and we note as well that on the recommendation of the Fifth Committee, the General Assembly had decided on 3 November 1978 that the United Nations Asessment rate for the Socialist Republic of Viet Nam was .001 percent to .003 percent, and as a consequence, Viet Nam was included in the proposed FAO staff for 1980-81 at .004 percent.

Fully aware of the fact that this question is beyond the authority of FAO, my delegation would like to draw the attention of the members of the FAO Council to the resolution of the General Assembly on the 14th October 1977, in which the General Assembly recommended that the Socialist Republic of Viet Nam should be included on the list of MSA countries. While joining the consensus on this resolution before us, my delegation wishes to express the opinion that as an MSA country Viet Nam should be permitted to pay the minimum US dollar rate.

CHAIRMAN: Thank you, delegate for Hungary. As you yourself said, this is a matter on which the United Nations is the body that can give the final ruling. All the same, I would like to give the floor to the Chairman of the Finance Committee to comment.

M. BEL HADJ AMOR (Président du Comité financier): Je voudrais préciser que le Comité des finances n'a jamais été informé de cette classification du Viet Nam dans la catégorie des pays les plus gravement touchés. Deuxième constatation, si j'ai bien retenu la date, la résolution est du 14 octobre 1977. Or, je crois que la quote-part du Viet Nam a été établie par les Nations Unies après cette date et la FAO ne fait que suivre le barème appliqué à New York. Troisième point, à ma connaissance - je peux peut-être me tromper - je crois que le facteur décisif pour l'établissement d'une quote-part n'est pas la classification dans la catégorie des pays les plus gravement touchés, ou bien les pays les moins développés; c'est surtout, je crois, le PNB. Je peux faire une erreur, mais je crois que normalement il faut: qu'il y ait une décision spécifique concernant un pays classé dans cette catégorie pour qu'il y ait une suite à donner par les institutions des Nations Unies.

CHAIRMAN: This is quite clear. Now we have before us certain proposals for recommendation to Conference. If anybody wants to take the floor on any of these items which have been introduced by the Chairman of the Finance Committee, the floor is open for general discussion before adopting these recommendations. If there are no comments, then I take it that the proposal by the Finance Committee that we as a Council appeal to members who are in arrears to pay up, is agreed to and adopted. And that the recommendation that the Committee proposes to the Council, that a draft resolution be prepared for approval by the Conference on the scale of contributions, is also adopted and agreed to; also the resolution on borrowing.

It was so decided
Il en est ainsi décidé
Así se acuerda

A.Y. BUKHARI (Saudi Arabia) (interpretation from Arabic): Since the document was prepared in April and we are now at the end of June, could the Secretariat please give us a clear picture of the contributions due for 1979: Is there a change? Has something new come up? Have contributions been paid between April and now? If there are no changes that have taken place, could it please be clarified?

CHAIRMAN: I think the Chairman of the Committee did deal with this, he did bring it up to date, up to the 18th, but I will call on him to repeat the points he made on updating.

M. BEL HADJ AMOR (Président du Comité financier): Effectivement, j'avais fait le point concernant la situation au 18 juin 1979. Je sais qu'il est assez difficile d'interpréter les chiffres et il est possible que les interprètes n'aient pas pu donner les chiffres aux délégués.

Ce tableau sera bien sûr publié, mais si le délégué de l'Arabie Saoudite veut bien après la séance de ce matin venir me voir, je suis disposé à lui communiquer tous les chiffres, car j'ai ici tous les calculs. A moins que le Conseil, me veuille patienter et dans ce cas je serai prêt à répéter ce que j'avais dit au début de l'introduction de ces questions.

CHAIRMAN: Is the delegate of Saudi Arabia satisfied?

A.Y. BUKMARF (Saudi Arabia) (interpretation from Arabic): My question was whether there had been any changes concerning contributions for 1979. If changes did take place, then I will get in touch with the. Chairman of the Finance Committee so as to be clarified.

CHAIRMAN: Yes, changes have taken place because he did give some figures which I remember writing down; so you can contact him to get the figures.

We go on to the next subject, and I call on the Chairman of the Finance Committee to introduce the next item.

- International Civil Service Commission Matters
- Commission de la fonction publique internationale
- Asuntos de la Comisión de Administración Publica Internacional

M. BEL HADJ AMOR (Président du Comité financier): Le deuxième volet de ces questions financières concerne la Commission de la fonction publique internationale. Il s'agit des par. 3.91 à 3.99 du document CL 75/4 et de l'Annexe D.

Le Comité a examiné les recommandations du rapport de la Commission de la fonction publique internationale ainsi que les commentaires du Directeur général y relatifs.

En général, il souscrit aux observations du secrétariat et il a pris note des incidences financières de l'application de ces recommandations.

Il recommande au Conseil d'approuver le contenu du rapport, compte tenu des commentaires de notre Organisation et des remarques du Comité lui-même, notamment aux par. 3.94 concernant le congé dans les foyers, 3.95 concernant l'allocation-logement, 3.96 pour ce qui est de l'indemnité de l'installation, et 3.98 concernant la défense des intérêts de l'Organisation auprès de la CFPI.

Enfin, le Comité attire l'attention du Conseil sur le par. 3.99 pour les décisions à prendre.

CHAIRMAN: Thank you, Chairman of the Finance Committee. We have before us proposals by the Finance Committee in connexion with the International Civil Service Commission matters. Do we accept the recommendations made by the Finance Committee in this matter? Yes, then it is so decided.

It was so decided
Il en est ainsi décidé
Así se acuerda

Can you go on with the next matter, Chairman of the Finance Committee?

- External Auditor Nominations
- Propositions de candidature aux fonctions de commissaire aux comptes
- Nombramiento de Auditores Externos

M. BEL HADJ AMOR (Président du Comité financier): Il s'agit de la nomination du commissaire aux comptes: par. 3.126 à 3.132 du rapport du Comité financier.

Comme vous le savez, le Conseil doit nommer le commissaire aux comptes de notre Organisation. Dans ce choix, il est aidé par les recommandations du Comité financier.

Je voudrais également rappeler au Conseil qu'à sa trente-neuvième session, le Comité a demandé au Directeur général de lui soumettre un choix de propositions. A la suite de cet appel, l'Organisation a reçu deux candidatures: celle du Royaume-Uni, qui est l'actuel commissaire aux comptes, et celle du Sri Lanka.

Le Conseil voudra bien considérer en particulier le par. 3.129, car la question a été largement débattue au sein du Comité, et le par. 3.129 reflète les conclusions auxquelles est arrivé le Comité des finances.

Eu égard aux problèmes pratiques qui se posent, le Comité recommande au Conseil de nommer à nouveau au poste considéré le contrôleur et vérificateur général des comptes du Royaume-Uni pour une période ultérieure de deux ans. Cependant, j'attire l'attention du Conseil sur le fait que le Comité estime qu'il serait peut-être indiqué de commencer à réfléchir à la possibilité d'allonger le mandat du commissaire aux comptes.

CHAIRMAN: Thank you Chairman of the Finance Committee. We have before us the draft resolution on the appointment of External Auditor. The subject is now open for discussion. If no member wishes to discuss the matter, then I take it that we adopt the resolution submitted to us in paragraph 3.132 by the Finance Committee concerning the appointment of External Auditor.

It was so decided
Il en est ainsi decide
Así se acuerda

The Chairman of the. Finance Committee will now deal with other matters which may or may not need specific decisions but which have to be considered by the Council.

M. BEL HADJ AMOR (Président du Comité financier): A présent, je voudrais attirer l'attention du Conseil sur la situation des locaux au Siège (par. 3.100 à 3.112).

Le Comité a examiné la situation des locaux telle qu'elle est illustrée dans ces paragraphes. J'attire l'attention en particulier sur le bâtiment D. A cet égard, le Comité réaffirme sa grave préoccupation à l'idée que ce local ne sera probablement pas disponible à la fin de décembre 1979, et il invite le Directeur général à insister auprès des autorités compétentes pour l'achèvement rapide des travaux, pour permettre à l'Organisation de réaliser des économies sur le loyer et les dépenses connexes. D'après les dernières informations, il est fort possible que le bâtiment D, ou tout au moins une partie de ce bâtiment, ne sera pas prêt avant la fin du premier trimestre de 1980.

Enfin, pour les autres bâtiments, le Comité a pris note du développement des questions relatives à ces bâtiments.

CHAIRMAN: Thank you very much, Chairman of the Finance Committee. Is there any discussion on this? If not, then we will go on to the next matter which you would wish to raise.

M. BEL HADJ AMOR (Président du Comité financier): Pour les autres aspects concernant la situation financières, je voudrais tout d'abord évoquer la question du rapport annuel sur l'exécution du budget 1978, qui figure à l'Annexe A du document CL 75/4. Je crois que tous les détails du rapport figurent dans cette Annexe et l'appendice y afférente. Quant aux éléments saillants, ils figurent aux par. 3.50-3.54.

Je voudrais attirer l'attention du Conseil sur deux points, à savoir que les dépenses pour 1978 n'ont absorbé que 42 pour cent du budget total du biennium et qu'en raison du taux de change défavorable dollar/lire, par rapport au taux retenu par la Conférence pour le calcul du budget, il a fallu prélever la somme de 968 055 dollars du compte de réserve spécial pour couvrir les pertes subies au titre du personnel. Il y a lieu de rappeler que ce compte, spécial, institué par la résolution 27/77 de la Conférence, s'élevait à cinq millions de dollars. Cette tendance risque de se prolonger et d'entamer davantage le compte spécial comme cela est illustré dans le par. 3.69.

Comme autre question, il y a tout d'abord la situation du compte Frais des agents d'exécution du PNUD qui figure aux par. 3.72 ainsi qu'au par. 3.11.

Je souligne à cet égard la préoccupation du Comité à propos de l'incidence financière susceptible d'affecter le budget ordinaire de l'Organisation par l'adoption de formules de calcul modifiées des frais des agents d'exécution du PNUD. Le Comité réitère à cet égard son appui au fait qu'aucune décision ne doit être prise sans avoir été examinée au préalable par les organes directeurs.

Au par. 3.65 iusqu'au par. 3.71, vous avez la situation concernant certains programmes et comptes spéciaux. Je crois que je n'ai aucun commentaire spécifique à faire à ce propos, sauf pour le fonds de roulement figurant au par. 3.70. Je rappelle au Conseil que le retrait qui avait été effectué sur ce compte figure au par. 2.23 du rapport de la 42ème session du Comité financier.

Pour les ajustements de traitement à Rome, par. 3.87 à 3.90, le Comité des finances n'a pas de commentaires spécifiques à formuler à cet égard.

Enfin, la dernière question concerne la Commission européenne contre la fièvre aphteuse, par. 3.122 à 3.125. Je n'ai pas de commentaires spécifiques à ajouter à ce propos. J'attire seulement l'attention du Conseil sur les paragraphes 3.123 et 3.125.

CHAIRMAN: This item is now before us for discussion; if members wish to discuss any of the matters referred to by the Chairman of the Finance Committee, you are free to do so. Is there any discussion on this? If not, then I will give the floor to Mr. West who will inform us about the latest develop ments on UNDP support costs (paras. 2.169 and 2.170).

E.M. WEST (Director, office of Programme, Budget and Evaluation): When I last reported to the Council on this matter the situation was that we were expecting a meeting of the Governing Council of the UNDP in New York last January, at which the Administrator was going to put forward his proposal for a new basis for calculating support costs. These were duly produced and contained two or three elements, the main one of which was to introduce a reduction of support costs at various stages of delivery beginning at $25 million, the another reduction at $50 million and so forth.

The ACABQ, which is, as you know, the equivalent of the Finance Committee of the United Nations, commented adversely on these proposals and said in effect that really the present system of 14 percent seemed a most adequate solution, but it was really a political decision for governments to take in the respective governing bodies of all organizations.

At the Governing Council, however, it was decided that the Working Group which they had set up to consider the subject should meet further during the course of 1979 and, inter alia, should consider information provided by the specialized agencies, the executing agencies on what effect the application of the Administrators proposals, and on one alternative thereto, would have financially. Accordingly the agencies supplied this information. In the case of FAO we worked out this financial effect in accordance with criteria laid down not by us but by the UNDP itself and we produced figures, reference to which you will find in the Finance Committee Report, which showed that if the system proposed by the Administrator were introduced for the third IPF cycle, the FAO loss-if I may call it that-that is, the amount of money in reimbursement which FAO would not receive, compared with the present 14 percent formula, would be approximately $3 million in 1982, rising to $6.5 million per annum by 1986. The cumulative losses during the five years of the third cycle would thus be in the region of $23.5 million.

A meeting of the Working Group of the Governing Council of the UNDP was arranged for the beginning of this month in New York to discuss the results of the information supplied by the agencies. I went to New York for this meeting. It was due to meet from 4 to 6 June and then to report to the Governing Council. It met late on the morning of June 4th and went into informal session almost immediately. Informal session is one in which the agencies do not participate unless asked questions. At first the agencies were exlcuded; then they were admitted and allowed to answer questions. The discussions were prolonged and in fact they did not complete their work by the scheduled time on 6 June, and I am awaiting confirmation that they did in fact adopt a draft decision which was under consideration on the night of 6 June when they were due to conclude. Assuming they have adopted this decision, it will go to the Budget and Finance Committee of the Governing Council which is due to meet in a few days time, and then to the full Governing Council itself for adoption. Although we were not officially in participating, since they were in informal session, I did make a statement before they went into informal session, referring to your past decisions, referring to the views expressed by the Programme and Finance Committees, as you have heard this morning, and making it clear that we could not associate ourselves with any other position.

Nevertheless, I should also say that other agencies also made it clear that they were not happy with the situation. I would say that the prolongation of the discussions of the Working Group were due to obvious strong differences between a number of countries, most of them the main contributors. Some of the major contributors made it clear that they considered that it would be best to continue with the 14 percent arrangement; others, however, did not feel that this was sufficient. They all agreed that 14 percent should continue for the 1980/81 biennium. That much is clear. The rest, as I have indicated, is obscure. If this draft decision to which I refer is adopted by the Governing Council, it will place us in a further disappointing and difficult position. Firstly, the Working Group is asking for a prolongation of its mandate: it was due to finish this month; now it is asking to continue.

Secondly, they are asking for authority for a "limited study by an independent consultant". They are also asking the Economic and Social Council to request the agencies to consider the possibility of bringing together, in an annex to their budget documents, information on their technical cooperation programmes and the related support costs financed from different sources based on agreed definitions of the elements to be included in support costs. They would invite the executing agencies to consider the feasibility of advising the recipient governments of the projected utilization of support costs reimbursed by UNDP or, to the extent applicable, covered from the agencies' regular budget corresponding to the total UNDP financed projects being executed by the agency in a national programme. I do not know what that means, the other two parts were clear but I do not know what the last part means.

The terms of reference of the proposed independent consultant are rather lengthy but they refer, inter alia, to ways and means of instituting adequate arrangements and accounting systems in the executing agencies designed to generate cost data which could give a clear picture of actual support in respect of technical cooperation activities. This set of decisions, if adopted, would, as I have indicated, constitute a problem because it all has to be done by June 1980 when the Working Group proposes to meet again. It was pointed out in the corridors that FAO does already provide much of the information to which they refer in the Programme of Work and Budget. In fact, photocopies of the relative pages of the Programme of Work and Budget were handed to various delegates. One of them said "but this is what we want from all agencies but had no reply to the question. But why do you wish to reduce support costs, more or less only for the FAO and not for others?" It was also pointed out that the budgetary and accounting procedures of each agency were the responsibility of its governing bodies and an independent consultant engaged for a number of weeks could hardly be expected to produce reforms for the whole of the system in all their budgetary and accounting procedures which would be acceptable to their governing bodies. However, the discussions were continuing when I had to leave New York, and I cannot predict the outcome. That is the unsatisfactory situation that I am afraid I have to report.

G. BULA HOYOS (Colombia); Agradecemos al sailor West la aclaraoion que nos ha suministrado de acuerdo con la intervención que había hecho la delegación de Colombia.

Consideramos que a estas alturas sólo corresponde al Consejo tomar nota de la situación existente y pedir al Director General que se nos mantenga informados del desarrollo ulterior de esta cuestión a la luz de la norma vigente aprobada por la Conferencia, según la cual no se debe tomar ninguna decisión que afecte a nuestra Organización sin previo estudio por parte de los organos Rectores de la FAO.

CHAIRMAN: Any other speakers? If not this brings to an end our deliberations for the morning session.

The meeting rose at 12.20 hours
La séance est levée à 12 h 20
Se levanta la sesión a las 12.20 horas

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