Previous Page Table of Contents Next Page

IV. PROGRAMME, BUDGETARY, FINANCIAL AND ADMINISTRATIVE MATTERS (continued)
IV. QHUESTIONS CONCERNANT LE PROGRAMME, LE BUDGET, LES FINANCES ET L'ADMINISTRATION (suite)
IV. ASUNTOS DEL PROGRAMA Y ASUNTOS PRESUPUESTARIOS FINANCIEROS Y ADMINISTRATIVOS (continuación)

12. Financial Position of the Organization (continued)
12. Situation financière de l'Organisation (suite)
12. Situación financiera de la Organización (continuación)

12.1 Financial Situation and Future Prospects (continued)
12.1 Situation financière et perspectives
(suite)
12.1 Situación financiera y perspectivas futuras
(continuación)

12.2 Consequences of the Financial Situation and Possible Measures to Ensure Implementation of the Programme of Work and Budget 1988-89 (continued)
12.2 Incidences de la situation financière et mesures éventuelles prendre pour assurer l'exécution du Programme de travail et budget pour 1988-89 (suite)
12.2 Consecuencias de la situación financiera y posibles medidas para asegurar la ejecución del Programa de Labores y Presupuesto para 1988-89 (continuación)

Juan NUIRY SÁNCHEZ (Coba): Mucho agradecemos, Sr. Presidente, poder consumir el primer turno de la mañana, pues de este modo nos ha sido posible observar todo el desarrollo sobre este importante tema discutido y analizado en el día de ayer y confirmar aún más nuestros criterios; pero antes, hablemos también sobre el tema.

Nuestra delegación no podría dejar de agradecer, en primer lugar al Sr. Crowther, por su presentación breve y resumida de la información financiera de la agrupación de la Organización hasta el día 11 de noviembre actual, así como la intervención especial del Director General puntualizando y situando aún más la extremada situación financiera de la FAO.

Hemos analizado los estados comparativos de años anteriores en cuanto a pagos pendientes, y nunca antes, esos atrasos habían influido tan negativamente en la realización de las actividades de la FAO. Y esto se debe al peso especifico que tiene la contribución de un sólo país que ha propiciado la pérdida del equilibrio y por tanto, la Organización se enfrenta a reducciones, recortes, cancelaciones, aplazamientos y todo tipo de ajustes que le ha impuesto la falta de liquidez.

Para los países en desarrollo que tanto dependen de la asistencia de la FAO es de honda preocupación que puedan afectarse aún más los programas y actividades que respondan a nuestras exigencias actuales. Queremos dejar definido que mi Delegación se opondrá a mayores recortes en el Programa aprobado por la Conferencia de 1987. Y ante ello, reiteramos nuestra aprobación al Director General a fin de que pueda concertar préstamos confiando tanto en su honestidad como en su capacidad y experiencia asi como la de sus colaboradores para que resulten lo menos gravosos para el futuro de la Organización.

Todos los aquí reunidos somos representantes de países soberanos agrupados en esta prestigiosa Organización de las Naciones Unidas para la Alimentación y la Agricultura, que cuenta con más de cuarenta años de servicio a la humanidad. Desde aquel 16 de octubre de 1945, la FAO ininterrumpidamente ha luchado entre otros objetivos por erradicar el hambre y la desnutrición en los países más necesitados de Africa, Asia y América Latina y el Caribe ganando cada día más prestigio. El no pretender dejar de oír todas estas voces que han expresado su preocupación y posición, es no querer oír el clamor de la mayor parte de la humanidad. Se ha escuchado de una forma u otra, tal vez con distintos matices pero con una única fuerza y preocupación, la actual crisis financiera de la FAO, señalando la misma sostenida responsabilidad, o tal vez mejor dicho el mismo responsable.

Ayer oímos las voces de los pueblos y también oímos la respuesta a los pueblos y esta respuesta fue otra vez la incertidumbre y la imprecisión; la misma no fue una respuesta económica; fue una


respuesta política pero de la política del "big stick". Se vuelve a estar de espaldas a las necesidades de los pueblos, a la realidad en que vivimos. ¿Qué hay detrás de todo esto?

Pero los tiempos cambian y aunque los poderosos puedan creerse más poderosos y creer más pobres a los pobres, lo cierto es que la mentalidad es otra. Entendemos que aquí se analizan cosas más serias que cumplir con una obligación del pago de 25 millones de pesos. Esto no puede responderse con frases de cliché. Ponerse de espaldas a los pueblos que han expresado su condena a tal medida en el día de ayer, repito, es ponerse de espaldas a la realidad de hoy. Todo lo demás es sofisma.

Finalmente, Sr. Presidente, si el día 8 de noviembre nos hubiéramos encontrado con nuestro colega el Embajador Bula Hoyos, le hubiéramos aconsejado muy respetuosamente, por la experiencia acumulada que tenemos de treinta años, que hubiera dedicado sus nobles rezos a mejores causas.

Atif Y. BUKHARI (Saudi Arabia, Kingdom of) (Original language Arabic): In the name of Allah the Merciful and the Compassionate, we are pained and very worried indeed because the present crisis of our Organization will leave deeply profound and negative implications in the long run which will obviously harm the developing countries which depend so much on the technical assistance of this pioneering organization and in the field of food and agriculture.

If we look at the details of this crisis, we are bound to say that a great part of the responsibility for this crisis is because of the attitude of the greatest contributor to the united Nations system as a whole. We have tried more than once, and more than once have we failed, to discover the main reasons which incite this superpower to adopt such behaviour vis-à-vis our Organization. This is strange and hard behaviour indeed. It has not been applied to other United Nations specialist agencies.

Countries which up to now have not paid their contributions in full or those who paid part of their contributions all fall in the category of developing countries. I am talking here, Sir, about countries wallowing in a sea of problems, of economic and financial problems, which do away with all their efforts towards development and growth. These countries can be excused, temporarily at least, especially as they are making strenuous efforts towards paying their contributions due to this Organization. Maybe the superpower has a reason which it does not want to reveal, but what amazes us, what astounds us, really is that it refuses categorically any solution towards the end of this crisis - like the authority to borrow or to obtain credit and bank facilities.

What is the possible solution? The Director-General has adopted a series of vigorous measures. He has made cuts and slow-downs in the programme which have not been reflected only at the level of technical programmes but also to a great extent, to a harsh extent, on the very morale of the staff of this Organization without exception which in turn has led to an exodus of some of the staff members.

We would like here to confirm that savings cannot.be the price to pay in terms of our Organization, of our know-how and of our experts who constitute the very backbone of our activities. We have talked to the Director-General on various past occasions and also through the Council. We have asked him to take some time and think the matter over because this was no way to solve the crisis. We were gratified yesterday to hear the Director-General confirming to us that such cuts will be discontinued.

We are amongst the proponents of change, breaking the status quo. This is specifically what we are doing now, as you are well aware. We are doing so without detracting from our dignity. We support the idea of slow, gradual and reasonable change. We are definitely against change for the mere sake of having change. We are against the policy of weakening our organization or detracting from our dignity. This is something we cannnot accept or support.

I hope, through you and through Council, that the distinguished representative from the United States will shoulder the responsibility of helping us by looking again into this difficult equation. Maybe, because of her social status and political position, she can do so, and enable us to find a solution without any dissent or confrontation, especially when this Organization is shouldering a very lofty, noble and hallowed responsibility. It is a responsibility of feeding the people and avoiding famine.

All our sacred religions have stated clearly that food should be given without detracting from the dignity of those who ask for it. Allah Almighty in the Holy Koran said "Do not push away those who ask for help, and speak all the time about the wealth that God has given you".


Paul R. BRYDEN (Australia): Firstly, may I express my delegation's pleasure to be working once more under your able guidance. Also, our congratulations go to our three Vice-Chairmen on their election. In line with the guidelines for our debate in Council I will be brief.

As far as concerns arrears we call on all Member States to honour their obligations in full and promptly. We are encouraged by announcements made by a number of delegations of efforts made to make at least partial payments. My delegation calls on all other delegations to make clear to their national authorities the gravity of the situation at FAO, and the need to step up efforts both unilaterally and through bilateral channels to address the arrears problem.

Regarding future budgets, my delegation supports the view of the Federal Republic of Germany that proposed spending should reflect what is likely to be received - a point made by Australia at the last Conference. If the draft budget for the next biennium is once again premissed on full contributions against prior knowledge of large shortfalls we will find it difficult to support. In this regard the call by the united Kingdom delegation for an explanation of the rationale for cuts made to date, namely, what are the priorioties determined by management, is supported. In a sense we are having a rerun of debates last year on the need for Members to be involved in priority setting. Perhaps if the draft Programme of Work and Budget, premissed on full contributions, were also to include an indication of priorities that must be done, and priorities that shall be done if funds permit, then the budget setting process could attract the widest support, unlike at the last Conference where four members voted against and seven abstained. This would also meet the wishes of the Director-General and Members that it need not be a negative growth budget but also a proposal to address the financial realities.

My delegation reaffirms its opposition to borrowing. However it is done there will be interest to pay and a further set of complexities to manage. Programme cuts and adjustments are the prudent ways - ask any Member with a debt problem. I would also notice that the circumstances in which authority was granted by Conference was far less dramatic, and yet Conference expressed some caution concerned with such a move. We commend the secretariat for their handling of the financial crisis. Of course, they are not alone in facing such difficulties. Many Members have real problems (including my own country) and are facing difficult and painful decisions in cutting programmes. We support the use of foreign exchange cover. Perhaps when the results of the operations are clearer the function of the Special Reserve Account might be reviewed - given that it was originally a device to address such issues.

A point of clarification - mention has been made of the Camberley Group's silence on the financial crisis. The Group was not established to examine financial issues. It arose from a sheer desire to improve and strengthen FAO and its activity well predates the current crisis. The Geneva Group is the donor forum for such financial discussions. The Finance Committee, the Council and Conference are the organs of FAO to discuss finances. To criticize or link ideas for reform of FAO with the arrears problem is, in my view, misleading.

We support the Canadian call for information such as appeared in document C 87/11/41 on appropriation and expenditure to be made available to the wider membership beyond the Programme and Finance Committees. Finally, I appeal for continuation, or, indeed restoration, of harmony in our debate on this issue. Criticizing the largest contributor may be a strong, almost overwhelming, temptation but in reality as we all know the situation is more complex than a single Council debate can resolve. Perhaps if the delegation of the largest contributor could report back to its authorities that FAO is determined to survive and adjust, and remains worthy of full support we may do more good than any amount of public castigation.

Saikou SABALLY (Gambia): I express the delight of the Cambian delegation to see you in the chair once again and we congratulate the three Vice-Chairmen on their successful election yesterday.

In the same vein, I should like to express my gratitude to Mr. Crowther and the Director-General for the very strong way they have presented the financial situation of our Organization. I listened to their presentations very carefully and realized that one consolation I had yesterday was when the Director-General indicated that the Organization is not in an "emergency ward". That was indeed a consolation because I was quite nervous. The more I heard from the presentations the more worried I became. I thought we were really in very serious trouble. Of course, I realized that there was consolation, but having heard the different interventions and having recognized the magnitude and level of the crisis I began to hear the siren of the ambulance taking the patients to the hospital. We should try to do something about that situation.

As you can see in the Report, Gambia has a few arrears to pay. However, I am delighted to inform the Director-General that before I came to Rome this amount had already been deposited with the


Bank of The Gambia. The Governor of the Central Bank has been given the necessary instructions to remit this amount to Rome as quickly as possible. Like most developing countries, we have balance of payments problems. I wish to make one more pledge that once I get back to Banjul I will take up the matter with the Governor of the Central Bank in order to give it topmost priority.

I should like to make a passionate plea because the magnitude of the crisis is very serious. The more I listen to the interventions the more I believe that unfortunately we still have a fighting mood, with confrontation and provocation. This will not solve our problems. We should understand that politics is over and should be set aside. Politics, confrontation and provocation should be substituted by peace, harmony and reconciliation. The elections are over. We have all done what we thought was right at the time, however, what is important and what is significant now is the Organization - FAO.

Let me appeal to everybody in this room, please do not let this Organization die. If this Organization dies it is perhaps not anyone of us in this room who is going to suffer and be a direct victim as a result of the demise of this very important Organization. It will be the several million poor and small farmers who are going to suffer. We have an obligation to protect those people, that is why we are here. We are given the trust and confidence of the public and in order to carry out that trust and confidence you must be mindful and sensitive of the conditions of those millions of poor farmers.

I should like to make a very strong plea to everybody to try to pay their contributions, and in particular to the United States. Everyone of us would like to appeal to them to see this as a fundamental obligation, to try and fulfill that fundamental obligation and to try and pay their contribution in order to rescue and save this very important Organization. That is an appeal coming from a very small Minister representing that part of the world that enjoys the best and most effective contributions of this Organization. If this Organization dies, Africa (more than any part of the world) will suffer most. Therefore, I take this opportunity in the name of all the small African farmers to appeal to everybody, in particular the United States, to realize the significance. It is not the election of the Director-General, that was over last November, we all did what was right at the time, we all believe in democracy. We saw what the majority wanted to do and they did it. I can say that I was not among the majority and everybody knew that. However, I accepted the verdict of the majority. I knew that the majority was right and therefore the minority had to follow. The Director-General will undoubtedly carry out all sorts of reforms and readjustments. The last thing he will do is to retrench himself. If the Organization does not have funds he will continue to make cuts which will affect personnel, programmes, training courses and operations that are fundamental to the effective implementation of the objectives of our Organization. This problem must be seen as a problem of the Organization and not as a problem concerning the Director-General himself, or Mr. Edouard Saouma. It is the problem for FAO and the poor and small farmers of the world. We have an obligation to them and in their name, once more, I would appeal to the United States to try and rescue this very important Organization.

Angel BARBERO MARTIN (España): Permítame, señor Presidente, que, como es la primera vez que hacemos uso de la palabra en este Consejo, le felicite por su presencia ante nosotros y felicite también a los vicepresidentes nombrados, así como, por supuesto, al Director General, que tan bien y con tanta realidad y tanta medida (en la medida de lo posible, la que el corazón le ha dejado) nos ha expuesto la situación en que se encuentra la FAO. Y sobre esa situación, como los países que hasta ahora han intervenido, nos gustarla añadir nuestras opiniones.

Señor Presidente, nuestro país es consciente de que, como toda obra humana, el sistema operativo, la eficacia de las actuaciones habituales y extraordinarias que realiza la FAO, se pueden mejorar, se deben mejorar, en aras de un completo cumplimiento de los objetivos que tiene encomendados. Pero no entendemos cómo se puede llegar a esa necesaria evolución en medio de los problemas que ha originado y que va a seguir originando la demora en el pago de cuotas de ciertos países; cómo se puede llegar a esa evolución en medio de las dificultades que supone funcionar con unos presupuestos condicionados por una mano, una sola mano, que cierra y abre un grifo a voluntad propia y suplanta así a las demás voluntades, de cuya conjunción deben ser fruto esos presupuestos.

También opinamos que no podemos paragonar, como alguna vez se ha hecho aquí, las demoras de pagos de ciertos países que tienen reales dificultades financieras para cumplir sus pagos con otras de países cuyas únicas dificultades son la falta de voluntad para hacerlo. Si no creemos, señor Presidente, en la necesidad de la cooperación multilateral en el mundo; si pensamos que un organismo como la FAO no es necesario, esta discusión que estamos manteniendo ahora está fuera de lugar, estamos todos aquí de sobra. Pero nos hallamos todos aquí porque creemos precisamente lo contrario. Eso quiere decir que ninguno de nosotros ignoramos que cada vez que un programa o proyecto de FAO se reduce o


se suprime; que una información estadística o referente a una situación catastrófica no llega un viaje de un experto no se realiza por culpa de esas dificultades financieras, existe en alguna parte, o en muchas partes del mundo, un grupo de pocos o, a veces, miles o millones de seres humanos -que, en definitiva, son seres humanos; no importa su nùmero en ese caso- que van a cumplir fatalmente su destino de hambre, incultura y marginación.

Nosotros, señor Director, vuelvo a repitir, queremos una FAO más eficaz, más transparente y, también, más fuerte en todos los sentidos. Y hacia ahí es a donde creemos que debe ir la revisión prevista en sus estructuras. Asimismo, estamos también a favor de establecer medidas que eviten tener que reponer el Fondo Especial de Reserva, que eviten los riesgos de las fluctuaciones de la principal moneda que compone el Fondo. Nos ha complacido también escuchar en las palabras del Director General que se va a evitar el tener que afrontar por parte de los países el pago de intereses devenidos de los posibles préstamos a los que esta situación podría conducir y que seguramente va a conducir.

Por último, señor Presidente, compartimos la satisfacción expresada por otros países ante al anuncio de la presencia, como observador, de la Unión Soviética. Pensamos que augura una presencia futura más plena en esta Organización.

Dong QINGSONG (China) (Original language Chinese): Mr. Chairman, I would like to congratulate you and say how pleased we are to see you chairing this meeting and to congratulate the Vice Chairmen on their appointment. I would also like to thank the Director-General for his succinct remarks on this subject.

We have heard interventions by many delegations. Now I would like to touch upon three points concerning the financial situation of FAO. First, we should thank those Member Nations, especially the developing Member Nations, who have paid their contributions in full, or in part, even when experiencing domestic financial constraints. However, as some Member States have not paid their contributions in time FAO entered 1988 with a deficit of US $ 47 million and met with serious financial difficulties. To overcome these difficulties the Director-General had to slow down the expenditure by US $ 20 million and authorize the forward contracts for the purchase of lire. These are desirable measures to help alleviate FAO's financial crisis and protect it against the possible losses due to exchange rate fluctuation. We extend our support to these measures adopted by the Director-General. However, we are concerned with the impact of some measures and the implementation of approved programmes. Therefore we hope that measures to be taken in 1989 will not further encroach upon the interests of FAO and its Member States.

Secondly, it is a known fact that FAO's financial constraints have seriously affected its programmes which has consequently affected the interests of the Organization and its Member States. Therefore it is our hope that all Member States, especially the major contributor will honour their financial obligations without fail. Only in this way can we enable FAO to maintain its financial vitality and prevent its programmes approved by the last Session of the Conference from being further jeopardized. It is also our hope that one should not precondition payment of contributions with reforms because any attempt to link them together is not an ideal solution to the existing problems and will not yield the envisaged results.

Finally, China, as always, will pay its 1989 contribution as early as possible.

Hanno HALINEN (Finland): Mr. Chairman, let me also express how happy my delegation is to see you chairing this meeting and my congratulations to the elected Vice Chairmen of the meeting also.

Since my country, as one of the Nordic countries, was mentioned by the Director-General yesterday as an example of those paying their dues early and in full I would like to touch on one pragmatic point in this context.

Let me start by saying that there seems to be a unanimous view on the point that all Member States should pay their assessments fully and in time. The question is, how can we enhance and guarantee the widest possible response to this common appeal, or rather obligation.

We strongly re-emphasize here that the obligation of every Member State, whether it is the biggest country or the smallest, is the same. We have been informed of prognosis and measures concerning the year 1989 which seems to be of crucial importance to the Organization. I understand that the Finance and Programme Committees will discuss the outline of the Programme of Work and Budget for the next biennium, 1990/91, in January 1989. In the situation described yesterday and


today it seems inevitable that they have to address themselves also to the year 1989· This meeting as scheduled at the moment will coincide with the time that the first assessed payments for the next year are expected to be made. Perhaps it would be useful, among the many ways and means to encourage early payments by Member States, to consider in that context organizing a meeting or meetings, as happened twice during last spring, with all the Roman representatives. That would provide the possibility for all of us to share the latest information on the financial situation, clear some possible misunderstandings connected with it, and consider further the views of the management and the Member States on this issue and hopefully lead to an incresed and speedy inflow of contributions.

Finally, Mr. Chairman, I would like to assure you that the Nordic countries again next year will do. their utmost to make their full assessed payments to FAO in January 1989.

Roberto E.E. DALTON (Argentina): Señor Presidente, permítame expresar nuestra satisfacción por contar, una vez más, con su reconocida capacidad para conducir nuestros debates. De igual forma, hacemos llegar nuestras felicitaciones a los distinguidos delegados que ayer por la mañana elegimos para la función de vicepresidentes del Consejo. Deseo también dar la bienvenida a la decisión de la Unión de Repúblicas Socialistas Soviéticas de participar en nuestros debates como observador. Esperamos que éste sea el primer paso hacia su participación plena en los trabajos de nuestra Organización.

Señor Presidente, agradecemos al señor Crowther la concreta y profesional introducción al Tema 12 de nuestra agenda, así como la calidad de la documentación preparada por Secretaría para nuestra consideración. Hemos recibido también comentarios y obsevaciones del Director General que constituyen, sin duda, un valioso aporte a nuestros debates.

El nudo de la cuestión es la situación creada por el nivel de atrasos en las contribuciones de los Estados Miembros, sin precedentes en la historia de la FAO. Esta anómala situación forzó cortes presupuestarlos de 25 y 20 millones de dólares en años sucesivos, limitando, postergando o cancelando programas, publicaciones y actividades de nuestra Organización. Eso, señor Presidente, es grave hoy y lo será más aun en el futuro, si la situación actual se prolonga en el tiempo.

Antes de seguir exponiendo mis puntos de vista sobre esta delicada cuestión, me apresuro a señalar que, tal como consta en el documento CL 94/LIM/1, ml país acaba de hacer efectivo en pago que, si bien modesto, trae el mensaje de que la República Argentina, aun en el marco de la más grave crisis de su historia, hace esfuerzos para regularizar su situación. Nuestros atrasos no son productos de una decisión política.

Señor Presidente, a lo largo del debate sobre el Tema 12, hemos tocado la cuestión del nivel del Presupuesto para el próximo bienio. En ese marco, algunas delegaciones han expresado la necesidad de que nuestra Organización viva dentro de sus medios, pidiendo al Director General que tenga en cuenta esta circunstancia. Por cierto que coincidimos con ese principio de sana administración, en un todo aplicable a la vida de la FAO cuando en el pasado los pagos se realizaban con puntualidad y la curva de los atrasos sufría pequeñas y predecíbles fluctuaciones. En otras palabras, se podía conocer el monto de los ingresos y aun el ritmo de los pagos con poco margen de error. Pero ésa no es la situación actual. Según el documento CL 94/LIM/1, las sumas pendientes de pago, entre cuotas corrientes y cuotas atrasadas ascienden a más de 140 millones de dólares, un nivel de incumplimiento sin precedentes. De ese nivel, algo más de 103 millones constituyen el atraso del mayor contribuyente. En ese marco, cabe que nos preguntemos cuáles son los medios dentro de los que nuestra Organización debe moverse, a los que debe ajustar su Presupuesto. Mi Delegación entiende que los medios de que dispone toda organización internacional están dados por la suma de las contribuciones de los Estados Miembros según la escala de cuotas en vigor. Por ello nos complace oir que el Director General no prevé nuevos cortes presupuestarlos.

Por ùltimo, señor Presidente, una breve referencia a la situación de la Secretaría, una cuestión que no debemos olvidar. Los cortes presupuestarlos han afectado gravemente a la actividad de nuestra Organización y han tenido también un serio impacto en la situación del personal, con niveles salariales estancados, puestos congelados, subsidios de escolaridad fuertemente reducidos, etc. Me pregunto si tenemos conciencia de que es ramos muy próximos a transformar a la FAO en un empleador no confiable, que en el futuro tendrá serla: dificultades para frenar el éxodo que ya se insinua y para la incorporación de nuevo personal manteniendo el alto nivel profesional actual.

Douramane MOUSSA (Niger): La délégation nigérienne que j'ai l'honneur de conduire, joint sa voix aux nombreux orateurs qui l'ont précédée pour se féliciter de l'honneur qui vous a été fait en vous désignant pour présider notre conseil.


Je félicite également les Vice-Présidents élus ainsi que le Directeur général de la FAO et ses collaborateurs pour nous avoir exposé avec toute la sérénité voulue la situation financière de notre Organisation.

Il me revient de vous assurer que nous sommes tout disposés á continuer de contribuer à un échange franc des idées, des avis et recommandations qui vont dans le sens du redéploiement des activités de la FAO.

Tous ceux qui ont parcouru les campagnes rurales ont pu apprécier l'oeuvre combien importante conduite par des experts de notre Organisation en harmonie avec les cadres nationaux, pour apporter leur appui technique et leur savoir-faire combien nécessaires aux petits agriculteurs en vue d'améliorer leurs conditions économique et sociale.

C'est au nom de ces populations que j'exhorte toutes les délégations des pays membres qui ne l'ont pas encore fait à oeuvrer auprès de leur gouvernement respectif afin que la FAO puisse disposer dans les meilleurs délais des contributions financières combien nécessaires à la poursuite de son assistance et de son appui aux populations rurales, conformément á nos engagements réciproques.

Malgré nos difficultés financières, notre pays, le Niger, a procédé depuis le mois de mal 1988 au règlement intégral de sa très modeste contribution pour l'année 1988. Nous tenons à la disposition du département financier de la FAO les informations nécessaires afin qu'il procède aux rectifications des documents financiers que nous examinons en ce moment, après les vérifications d'usage.

Un consensus s'était dégagé depuis la précédente Conférence générale, á savoir que chaque pays membre reconnaissait - de même que la Direction générale de la FAO - l'opportunité d'une évaluation de l'oeuvre grandiose de notre Organisation, le recentrage de son mandat au vu malheureusement de l'aggravation de la crise alimentaire mondiale et, comme corollaire, la redéfinition des voles et moyens pouvant lui assurer une meilleure efficacité sur le terrain, aux côtés des populations démunies. Un mandat clair avec un calendrier précis ont été attribués â des comités spécifiques qui sont à pied d'oeuvre. Nous nous devons de nous conformer aux décisions de notre organe suprême et de lui laisser toute liberté de réflexion. Il va de soi que tout document de travail qui pourrait tant soit peu les aider sera mis à la disposition des membres qui le solliciteraient; ils doivent disposer de toute l'autonomie et de toute la neutralité que requiert une telle tâche. Nous sommes sûrs que la bonne foi pourrait prévaloir et que les débats que nous avons inaugurés depuis le début de notre session seront plus sereins une fois que les éclairages requis auront été apportés par ces Comités, l'année prochaine·

Pour le moment, la gravité de la situation et ses répercussions sur de nombreux programmes de terrain nous dictent un peu plus de sagesse et de sérénité. Ne tuons pas le peu d'espoir qui reste aux déshérités de ce monde après avoir déjà, à travers des mesures draconiennes du FMI et de la Banque mondiale, compromis les possibilités d'une réelle relance économique.

Nous avons, par le respect des dispositions d'un acte constitutif que nous avions avalisé, élu un Directeur général qui est, dès lors, notre Directeur général à tous. Nous nous devons de l'aider et de travailler ensemble; ne soyons pas trop pressés; faisons ce que nous avons toujours fait ensemble jusqu'à ce que les études que nous avons commencées nous assurent que quelque chose de meilleur pourrait être fait; mettons-y les moyens, la bonne volonté, la patience et la tolérance.

Mlle Faouzia BOUMAÏZA (Algérie): Je commencerai par vous souhaiter la bienvenue parmi nous. Ma délégation est heureuse de vous voir présider à nouveau le Conseil car, à travers vous, c'est un peu le Maghreb tout entier qui est à l'honneur. Je voudrais également féliciter les autres membres élus du Bureau; ce sont des personnalités représentatives et hautement qualifiées.

Ma délégation se joint à ceux qui ont exprimé le souhait de voir siéger l'URSS à nos côtés et elle espère aussi que la Palestine sera bientôt un nouvel Etat Membre parmi nous.

Bien entendu, ma délégation a examiné les documents pertinents CL 94/4 et CL 94/LIM/1. Nous avons écouté attentivement la présentation faite par M. Crowther et les commentaires du Directeur général. Nous avons également écouté les interventions des orateurs qui nous ont précédés et notre sentiment est que la situation financière de la FAO demeure critique.

En effet, si pour l'instant les projections pour la fin de l'année sont moins sombres qu'on ne pouvait le craindre en début d'exercice, c'est tout simplement parce que des mesures ont été prises, mesures que nous avons beaucoup de mal à accepter car 11 s'agit de coupes budgétaires qui, en définitive, ne sont pas bénéfiques aux pays du tiers monde. Il y a eu aussi la réaction positive des pays européens et de nombreux pays du tiers monde qui ont fait d'énormes sacrifices pour régler leur


contribution. Parmi ces pays, il y a le mien qui, attaché à l'Organisation, attaché aux valeurs du multilatéralisme, a tenu à honorer ses engagements et a payé sa contribution rubis sur l'ongle, comme l'a dit le Directeur général.

C'est pourquoi nous sommes déçus, après l'intervention de notre amie des Etats-Unis, de voir que la position de ce grand pays demeure inchangée et qu'il persiste dans le refus de verser sa contribution. Nous espérions que, lors de cette réunion du Conseil, il y aurait eu un élément positif. Or, il y a un an exactement, lorsque nous discutions de la situation financière et des réformes de la FAO dans cette même salle - les délégués qui sont ici sont presque les mêmes et peuvent en témoigner - ma délégation avait dit que si nous n'étions pas a priori contre les idées de réforme, nous ne partagions pas non plus l'idée de la réforme qui était dans l'esprit de certains pays occidentaux. A l'époque, on avait très clairement laissé entendre que le versement des contributions était lié aux réformes qui seraient entreprises à la FAO. Eh bien, depuis un an, l'examen de ces réformes a lieu; nous nous sommes rendus à la position de la plupart des pays occidentaux puisque nous avons accepté la plupart de leurs idées et les propositions contenues dans le document CL 94/4. Le rapport intérimaire montre que nous sommes en voie d'accepter la plupart des propositions occidentales. On s'étonne alors - et l'on est en droit de s'étonner - de ce refus persistant de ce pays de payer sa contribution à la FAO.

Bien sûr, il y a d'autres pays membres qui n'ont pas payé leur contribution. Mais cet état de fait ne découle pas d'une prise de position politique. Il y a une distinction à faire. Voilà notre sentiment face à cette situation. Nous souhaitons vivement que tous les pays membres versent leur contribution. Nous souhaitons également que notre amie la Représentante des Etats-Unis se fasse notre interprète auprès de son gouvernement pour qu'il active le versement de ses contributions antérieures et courantes.

Antoine ESSOME (Cameroun): Monsieur le Président, la délégation du Cameroun est heureuse de vous voir présider cette 94ème session du Conseil de l'Organisation des Nations Unies pour l'alimentation et l'agriculture dont les travaux, à notre avis, revêtent une importance capitale pour la raison essentielle que nos décisions sur le problème crucial des contraintes financières que connaît l'Organisation vont avoir, à court ou moyen terme, des répercussions directes sur la gestion et les activités de cette institution.

Je saisis cette occasion pour adresser mes vives félicitations aux trois vice-présidents élus et pour saluer avec la chaleur qu'elle mérite la délégation l'Union des Républiques socialistes soviétiques qui participe à nos travaux en qualité d'observateur. Notre souhait est de voir ce grand pays se joindre à la grande famille de l'Organisation des Nations Unies pour l'alimentation et l'agriculture et prendre la place qui lui revient en son sein.

Nous avons suivi avec la plus grande attention l'excellente présentation par M. Crowther du sujet que nous examinons et toutes les précisions fort pertinentes que le Directeur général a bien voulu y apporter.

Comme l'ont si bien souligné les orateurs qui m'ont précédé, la situation financière de notre Organisation est très préoccupante du fait des problèmes de trésorerie qui procèdent surtout des lenteurs enregistrées dans le rythme des versements de leurs contributions par les Etats Membres.

Cette situation, qui se traduit par un déficit budgétaire important dès le début de l'exercice en cours, a déjà conduit le Directeur général à opérer à contre-coeur des coupes sombres dans le budget par le gel des postes vacants, par la mise en veilleuse d'importants programmes d'intérêt capital pour certains pays, la suppression de beaucoup de publications, et j'en passe.

A ce rythme, de telles mesures de restriction, que nous avons accueillies avec consternation, vont à coup sûr affecter le sens même de la mission que nous avons confiée à l'Organisation, à savoir libérer l'humanité de la faim.

La force de l'Organisation réside aussi dans sa capacité de relever le défi qui se pose à elle. Les difficultés financières de l'Organisation nous interpellent tous. C'est donc ensemble que nous devons rechercher les mesures visant à doter la FAO de ressources financières nécessaires et suffisantes à la réalisation de son programme.

La présence de tous dans cette salle, et les discussions importantes qui se sont développées autour de cette question, montrent à l'évidence que nous restons attachés à la coopération multilatérale, et que vraisemblablement tout sera fait par les uns et les autres pour apporter une solution satisfaisante à ce problème.

Nous nous félicitons donc de tout l'intérêt que beaucoup de pays ont marqué à ce problème de la situation financière de l'Organisation. A ces pays qui se sont acquittés intégralement de leurs obligations, nous adressons nos vifs encouragements.


Et c'est sans doute le lieu d'exprimer notre reconnaissance au pays hôte pour sa contribution supplémentaire de 30 millions de dollars destinés aux programmes de coopération technique.

Pour sa part le Gouvernement camerounais, en dépit de la grave crise qui n'a pas épargné notre pays, et malgré les mesures draconiennes prises pour réduire le train de vie de l'État et imposer des sacrifices à son peuple, n'a pas manqué d'honorer ses obligations. C'est d'ailleurs dans cet esprit que nos contributions aux ressources de la FAO au titre de l'année 1988 ont été réglées dans leur intégralité, avec un acompte sur celles de 1989.

M. le Président, la délégation du Cameroun se joint aux autres délégations et réitère l'appel lancé à tous les pays membres de l'Organisation pour tout mettre en oeuvre afin d'accélérer le processus de déblocage et de versement des contributions courantes et des arriérés dus à l'Organisation dans l'intérêt bien compris des Etats Membres, mais surtout pour aider la FAO à apporter aux masses rurales des pays en développement toute l'assistance qu'elles sont en droit d'attendre.

Namukolo MUKDTU (Zambia): Thank you for giving me the floor to make some contributions on this very important subject of the FAO budget and the financial problems affecting our Organization. It is a pleasure seeing you in the Chair and my delegation takes this opportunity to congratulate your three vice-chairmen on their election to assist you.

My delegation also takes note with tremendous delight of the presence in an observer capacity of the USSR delegation. It is our fervent hope that the USSR will soon enjoy membership of the FAO and thus complete FAO's intended universality. The USSR membership would probably assist in the future in alleviating to some extent FAO budgetary problems.

My delegation appeals to all member nations to pay their contributions. All member nations who have not paid the assessed contribtlons are as guilty of disrupting the operations of the FAO as the single member nation who seems to be repeatedly attacked. Every country is capable of paying their contributions; how the payment is effected is a matter of a given country's priority settings. Member countries should give adequate priority to the payment of FAO assessed contributions. Our condemnation of the biggest contributor would be very strong today if we had all paid our shares of contributions·

My delegation is extremely alarmed by the poor cash flow situation of the FAO. This cash flow situation becomes more critical when seen against the background of the enormity of the problems facing the world today; problems of the calamities such as floods, such as locusts and rinderpest outbreaks, constantly calling for enormous assistance from the international community with FAO being expected to take the lead in responding timely. Under the circumstances my delegation pleads, appeals to all member nations to pay their assessed contributions.

With regard to the need by FAO to borrow money to meet its immediate obligations, my delegation would be sympathetic to the idea if the borrowing is for bridging finance. Bridging finance should therefore be borrowed under the assurance of the receipt of funds from its member countries sooner or later. Under such circumstances FAO should negotiate for as low interest rates as possible and that the particular activity for which finances are required is deemed to be truly urgent and critical.

A number of issues have been touched upon by other delegations. What I want to speak to briefly is the role of FAO in the structural adjustment programmes of various countries. My delegation feels that the role of FAO in the structural adjustment programmes should be left to that of the FAO of mobilizing funds for developing countries and for identifying markets for produce from these countries. As a general principle, we should restrict FAO to each area of expertise and to let other organizations carry on their own specialised functions. In this way, we shall execute tasks timely and with exellence.

The financial problems of the third world arise from failure to find new markets for our produce, failure to attract really good prices, aggravated on the other hand by developed countries' desires to keep inflation low, desires to generate more revenue from the exports to developing countries and for their desire to minimize inputs by developing artificial substitutes.

I hope that our protracted debate on the FAO financial situation will not discourage the Soviet Union from joining the FAO at some future date.

V.k. SIBAL (India): At the outset, Mr. Chairman, I am very happy to see you in the Chair and guiding our deliberations. We would also like to congratulate your Vice Chairmen on their elections. We would also like to join the previous speakers in the warm welcome accorded to the observer from the USSR, a country with which India has very strong and deep relations.


Thank you for giving me the floor to enable me, as Chairman of the Group of 77 to make a statement expressing the essence of the views of the Group on this most important subject which the Group has directed me to make. I would like to apologize in advance if the statement is a bit lengthy but I hope that you will bear with me, keeping in view the nature and importance of the subject and my obligations to cover the principle views of my Group in it. In making the statement we are heartened by the awareness that many of the important elements in this statement are shared by many developed countries.

FAO's financial situation is continuing to give cause for grave concern. The Group deeply regrets the circumstances of the non-payment of contributions which have brought FAO to its present pass. The beneficiaries of FAO services, mostly developing countries, have suffered grievous cuts in such services valued at over US dollars 45 million over the last two years and there seem to be no indications in sight which would signal the end of the present situation which is marked by serious anxiety and concern. The belt-tightening measures taken by the Organization and the generous assistance of Italy have kept FAO and its important programmes afloat without damage to its core capacities and activities and for that we deeply appreciate the efficiency and prudence exercised by the management of the FAO in making the painful choices that the Director General was compelled to make in this situation and applaud the host government for its assistance.

The Group recognizes that FAO's financial agony has gone on too long. We believe that there is little scope to continue the cut and slash exercises which have been carried on for the last two years without causing serious damage to the Organization's capacity to deliver programmes. In this context, the Group would expect that while FAO may continue to pursue any economies in its operations as may be feasible without its damaging its capacities, we believe that the scope for further substantial cuts is exhausted. Other alternatives such as borrowing may also have to be and, indeed, explored and resorted to within the mandate of the Director-General to keep the Organization's core programmes going. We also believe that ways have to be found to increase FAO's activities to meet the increasing expectations from it on the part of the burgeoning populations of the world. In that context, the budgetary levels of the FAO should have a realistic relationship with its increasing responsibilities and should be adequate to address the needs which it is called upon to satisfy. The Group recognizes that the serious situation which FAO is facing is not the result of the financial imprudence or administrative inadequacies, but the outcome of the situations brought about by the non-payment of assessed contributions, particularly the outstanding dues of the largest contributor which stand at US dollars 103 million out of total outstanding of US dollars 140 million as at November 11, 1988.

We had the pleasure of listening to the distinguished delegate of the largest contributor and have noted the announcement we made about the part-payment to be made. We feel it would be helpful if complete payment were possible. We hope that the release of funds will be quick and that there will be a progression to full funding, and the framing of a plan for the payment of arrears will find fruition at a pace and in a manner which will restore FAO's financial health early.

The Group of 77 also recognizes that the assessed contributions to FAO are a constitutional obligation of the member countries and should not be the subject of negotiations. If these payments, which should be certain and predictable to enable FAO to programme and implement its services smoothly and efficiently, need to be negotiated every time, it will mean a serious and regressive setback to the multilateral system. The Group of 77 would like to place on record its strong and clear view that conditionalitles should have no place in the financing of the FAO.

The Group have also noted that there are instances where the contributions by the same country to different International organizations have been made in different proportions. FAO has suffered from this. We are of the view that there should be no discrimination in such matters, particularly in respect of FAO which has dedicated itself with distinction to the pursuit of the goal of serving the poor, the hungry and the malnourished of the world.

In spite of the Group's clear view on the untenablllty of conditional!ties on the payment of assessed contributions, the Group has been flexible and accommodating in that it agreed to a review of certain goals and operations of FAO even when the need for it was not clearly established. We have agreed to certain experimental changes in the budget process to facilitate repayment of certain contributions which, we were given to understand, would be facilitated if such an approach were adopted. However, although the process of review and change has been launched seriously, the problem of arrears has been aggravated.

We hope that the delicate package which the member countries distilled after intensive discussion will not come under pressure through disappointment arising from lack of signals supportive of those understandings. We hope that our concern will be appreciated, as also our spirit to assist all objective and serious endeavours to shape FAO and to strengthen it through change. At the same time we would expect that ways and means can be found quickly to unblock the flow of funds to the FAO.


Finally, the Group joins the Director-General in appealing to member countries, particularly the largest contributor, to pay their outstandings as soon as possible so as to enable the Organization to fulfil its mandate.

LE PRESIDENT: Je remercie le représentant de l'Inde pour sa déclaration et également pour la communication qu'il a faite au Conseil d'une déclaration du Groupe des 77.

Washington ZUÑIGA TRELLES (Perú): En primer lugar, debo manifestar mi completa adhesión a las declaraciones de mi Grupo. Por consiguiente, ya prácticamente no debía hacer declaraciones que ya han sido expresadas por nuestro Presidente. Sin embargo, quiero expresar la opinión de mi país en relación a este asunto.

En primer lugar, considero que la exposición hecha por el Director General ha sido muy clara en todos sus aspectos, y no solamente clara sino dramática en muchas partes debido a la erosión que viene sufriendo la ecología mundial y la agricultura, a causa de fenónemos naturales y otras debidas al hombre como son los aspectos económicos, políticos y sociales.

El tema que estamos tratando me da la impresión de que se tratara de un rompecabezas que se quiere armar sabiendo que el elemento fundamental es la base financiera. Si bien hay algunos países del Tercer Mundo que no hemos completado o que estamos atrasados en nuestros pagos, se debe como se ha expresado, no a la falta de voluntad sino a que estamos atravesando muchos de nuestros países las crisis más importantes de este siglo.

De acuerdo con todos los que han expresado su opinión, llegamos a la conclusión de que todo reside principalmente en la voluntad que tengan los Estados Unidos en pagar sus contribuciones. Yo creo que es lo fundamental.

Quizás por razones de vecindad con Colombia somos un tanto soñadores. Yo quisiera exponerles también un sueño que tuve hace algunos días. Me acosté pensando en el problema financiero de la FAO y soñé que un presidente recién electo había deseado cambiar el lugar de sus vacaciones; en vez de ir a un lugar de playas hermosas y hoteles muy elegantes, prefirió irse a un continente que sufría las consecuencias de la crisis y de grandes desventajas ecológicas. Llegó a uno de estos países y se encontró con que había una tremenda sequía.

Lo que relato no es una idea sino un sueño, y como Uds. saben, en los sueños las cosas resultan un poco raras. Al llegar a estos países, su avión se le malogró y tuvo que aterrizar en un país pobre donde requirió un poco de pan, y le dijeron que solamente le podían dar uno para cada uno de ellos. Y preguntó por qué. Porque no tenían dinero para poder importar trigo, no tenían las suficientes divisas. Bueno, pidió un poco de Coca Cola y le dijeron que tampoco había por la misma situación de que no había divisas para importar, y les dieron un pan a cada uno que no era sino la ayuda del Programa Mundial de Alimentos.

Se fue a otro país donde encontró un poco de comida pero apareció una manga de langostas que terminaron con la comida que tenían entre manos, y no les dejaron siquiera comer su hot dog a este señor y a su comitiva. Siguió caminando por el Africa y llegó, estaba tan tostado por el sol que había cambiado casi de color, llegó a la frontera de un país y le dijeron que no podía entrar porque era un hombre moreno. Era lo que se llama el Aparthied.

Pero, después de toda esta tragedia, llegó a su país, regresó, y preguntó que quién era el responsable de la situación de la agricultura de estos países. Le dijeron que era la FAO. Entonces él consultó con sus asesores que le dijeron que efectivamente era la FAO pero que no podía hacer mucho por estos países en vista de que no tenían recursos. Y él ordenó inmediatamente que se le dieran los recursos. Entonces una voz dulce femenina en un tono un tanto inocente le dijo: "Señor, pero si son 54 países los que no pagan". "Pero, hijlta, yo he estado en Africa y he visto toda la tragedia de este pueblo y ¿cómo quieres exigir a estos países que paguen antes cuando nosotros debíamos dar ejemplo y pagar?" "Señor, no tenemos dinero". "Bueno, cortemos los presupuestos de las Fuerzas Armadas, por ejemplo; dejemos de fabricar algunas armas y demos los fondos correspondientes a los pueblos que lo necesitan, a la FAO para que pueda cumplir con sus programas".

Bueno, este es un sueño nada más y como en los sueños, yo aparecí metido por allí, y cuando estaba con el deseo de llamar por teléfono al Dr. Saouma y avisarle de esta novedad, de este cambio que se habla suscitado, oí las campanas de mi humilde parroquia y en eso desperté y ví que era simplemente un sueño. Yo le había dicho antes a ese señor que dijo que tenía que hacer cambios y reformas que estaba haciendo una especie de perestrolka y que lo felicitaba. Ojalá que estos sueños se pudieran


hacer realidad y ojalá que muchos gobernantes pudieran visitar estos países para llevarse la impresión exacta de lo que sucede en estos países.

No sólo necesitamos de la perestroika en muchos países sino también un poco de claridad, del glasnost como se le llama hoy. ¿Por qué Estados Unidos discrimina a la FAO? ¿Acaso no se están ejecutando las acciones solicitadas por ese país con expertos y otros? Hay casos contradictorios. Se le asignan recursos, por ejemplo, a la Organización Mundial de la Salud, y no se le asignan a la FAO cuando son prácticamente programas interdependientes. Si es que no hay nutrición y no hay alimentación, van a tener que triplicar sus aportes a la Organización Mundial de la Salud.

Nosotros desearíamos que se nos explique por qué hay esta discriminación. ¿0 es que hay falta de simpatía a quienes dirigen la FAO? Y si fuera cierto esto, ¿por qué ha de castigarse a los países pobres? ¿0 creen los Estados Unidos que la FAO es una entidad antinorteamericana por haber criticado la equivocada política de su gobierno hacia nuestra entidad? Mi Delegación al menos, señor Presidente, siempre se ha cuidado de separar, para que no se crea que somos antinorteamericanos, pueblo y Gobierno. Siempre hemos manifestado que los pueblos son buenos. El pueblo norteamericano es admirable; pero no podemos, a veces, dejar de criticar la equivocada política de sus gobiernos, que son transitorios; el pueblo es permanente.

Quiero aprovechar también, señor Presidente, para felicitar a la Unión Soviética por enviar un observador. Mi Delegación quiere expresar su deseo de que ojalá pueda incorporarse plenamente a la FAO. Señor Presidente, quiero también solicitar a la Delegación soviética haga presente, en nombre de mi Delegación, la esperanza que tenemos en la "perestroïka" soviética. Yo acabo de leer el libro escrito por el señor Gorbachov, y encuentro que lo que está realizando está de acuerdo con lo que él dice en su libro y que significa no solamente el desarrollo de su país, sino mejorar las relaciones con el mundo. Tengo mucha fe en el señor Gorbachov y creo que si se llegan a cumplir sus propósitos, bajarán los gastos en armamentos y esto se invertirá en el desarrollo de nuestros países.

Permítaseme leer un pequeño párrafo del libro del señor Gorbachov. Dice: "Mucho depende de la posición de los Estados Unidos y de todo el Occidente. Por encima de todo, depende de ellos si vamos a ser capaces de solucionar los problemas del mundo moderno y romper el bloqueo de las oportunidades existentes de desarrollo. Si tenemos éxito en establecer nuevas relaciones basadas en la igualdad y en el debido respeto por los intereses de cada uno, ¿para qué necesitaríamos la maquinaria militar existente, que fue diseñada como instrumento de la política exterior expansionists? De manera comprensible, esta maquinaria ha aumentado a través de los siglos y no es fácil destruirla de la noche a la mañana; pero estamos llegando al punto en que debe destruirse, ya que asiáticos, africanos y latinoamericanos quieren vivir como seres humanos. Estoy convencido de que los Estados Unidos y la Unión Soviética pueden contribuir mucho en la búsqueda de caminos para establecer nuevas relaciones mundiales."

Señor Presidente, me parecen admirables estos propósitos. Yo tengo fe en el futuro, señor Presidente. Creo que todos nosotros debemos apoyar estas ideas o cualesquiera otras similares que surjan en el mundo. Nuestra crisis yo creo que sólo es transitoria. Debemos tener fe en el futuro. Debemos rogar a Dios. Creo que el señor Gorbachov, por su ideología, es ateo; sin embargo, le digo que, por mis creencias religiosas, rezaré siempre por él, para que sus propósitos se cumplan y por que también sucedan perestroikas en la otra parte del mundo y estos recursos dedicados a armamentos puedan llegar a solucionar el hambre de la humanidad.

Vanrob ISARANKURA (Thailand): First of all, Mr. Chairman, I would like to associate myself with earlier speakers in welcoming you once again to the Chair, and to express my congratulations to the three Vice-Chairmen on their election.

My delegation would also like to extend our thanks to the Director-General and Mr. Crowther for giving us the very clear information on the financial position of our Organization.

On this item my delegation wishes to make a few comments. First, we are happy to inform you that my country has already paid our contribution in full. Secondly, we should like to thank all member countries who have made any kind of payment to the Organization this year. This includes Member Nations who have paid in full and all the nations who have made only a partial payment. We think to receive one dollar is better than nothing. Thirdly, we make a strong appeal to Member Nations who have made no payment at all in 1988 to pay as soon as possible in order to enable our Organization to fulfill its mandate.

Fourthly, my delegation would like to draw your attention to the fact that yesterday the Director-General informed us that this year our Organization had to make new cuts, new savings, abolition of posts, the elimination of another 50 meetings and more than 80 publications. On this


occasion, I should like to say that most of our concern is the elimination of more than 80 publications. We consider that the FAO publications provide great benefit to small and poor countries such as my country. We need them badly.

As regards this method, I believe that although the 80 publications were eliminated it does not mean that the Organization had to abolish all the posts which used to produce all those publications.

To stop publication means that some of that staff will work less. Do we want this staff to be idle? Therefore, I am ready to support the Director-General in borrowing money in order to maintain the publication for the member couñtries.

Finally, I should like to say that to borrow money is not the wrong thing to do - it is not a sin. We all know that the successful businessmen always borrow money to run their firms. The problem may occur concerning the utilisation of the loan. I believe strongly that the Director-General knows how to utilize the loan and to get the maximum benefit for member countries. However, my delegation hopes that all the member countries who have not paid their contribution will listen to this appeal.

LE PRESIDENT: Je remercie tous les Honorables Délégués qui ont bien voulu enrichir le débat sur cette question très importante et très préoccupante; je propose à Monsieur le Directeur général de bien vouloir autoriser Messieurs Crowther et Shah, à donner les réponses aux questions posées par un certain nombre de délégués, en particulier le Canada, le Royaume-Uni, le Japon et je leur demanderai de bien vouloir donner les informations utiles afin de compléter la connaissance des dossiers par les Etats Membres.

Dean K. CROWTHER (Assistant Director-General, Administration and Finance Department): There were several countries who asked for specific information to be provided. Perhaps I can address those countries jointly.

First, there was the question concerning the possibility of providing our financial results in a • different form and format, namely, that of providing a listing by programme. The same information was provided to the Conference a year ago and was found by some countries to be useful. Certainly, we appreciate that request. There are some problems in producing it rapidly. We have a number of unfilled posts and a number of shortages which make it difficult for us to do the special analysis. It is not the form and format we normally keep our accounts and records in. We are guided, of course, by the basic text and by Conference Resolutions that require the accounting system that we do maintain.

On the other hand, we provide such information annually to the Programme and Finance Committee. It makes a specific breakdown by programme. While we appreciate the request that has been made in terms of this Council I should say it would be extremely difficult for us to take staff from their present assignments and put them on those specific assignments in order to provide the information at this Council. I would also like to say in this connection that the Finance Committee and the Programme Committee regularly reviews this kind of information.

The Council will recall that one of the basic purposes for setting up the Finance Committee is shown in the basic text under the general rules. It states "The Finance Committee shall assist the Council in exercising control over the financial administration of the Organization". There may be some gaps in reporting that the Council may wish to provide. If so, the Council may wish to ask the Finance Committee or the Programme Committee to extend their reports in some fashion to incorporate the type of material that the Council may wish. However, it is difficult for the Organization to provide the additional information that is requested at short notice. I should also mention that because of the shortage of staff it is difficult to make a number of changes. I should like to add that much of the reductions and slowdowns have had an impact on administrative facilities. At the same time we have been attempting to automate a number of our accounting systems and personnel systems which, when they are complete will provide a facility with which we can much more rapidly produce such information. At the same time as attempting to automate we have many vacancies caused by the necessary slowdown in expenditure and this makes it very difficult to comply with this specific request.

Secondly, there was a request to make a cash forecast for 1989. I think we all understand very well the value and necessity for that type of information. In normal years that would probably have been something that we could have done quite rapidly. But for the benefit of members I should like to recall that during the last two biennia we have had a very erratic contribution schedule. It is not known in advance when each of the countries are likely to pay. The Director-General


requests in his original call for contributions the schedule and pattern of payment of each country. Normally we do not receive such information. Particularly in 1989 we have a number of major unknowns of when people are likely to pay. It is very heartening to hear the statements made by Council Members here that a number of efforts will be taken to pay as early as possible. That will assist us greatly in trying to arrange to schedule the 1989 contributions.

At the same time, when the 1989 call for contributions goes out we shall be very careful in asking again that each member country should advise us of their schedule of payments - time and amount -that they will make.

It was very heartening to hear from the United States that in the forthcoming request for budget for next year the present United States administration would request full funding for all UN agencies. Certainly that would be helpful but, as I am sure all of you can appreciate, the United States is not in a position at this point in time to tell us what the reaction of Congress is likely to be, nor when such information may be made available. Knowing neither the amount nor the timing of the largest contributor's payment next year, nor whether we shall experience the same erratic payments in 1989 as we experienced in 1988 (which resulted from many of the contributors of the major countries changing their pattern of contribution) made cash management almost impossible last year. If that same pattern occurs in 1989 we have no way of telling when the contributions are likely to come. For those reasons I do not know how we can prepare a logical, reliable and practical plan for 1989 receipt of contributions. It is necessary to project the cash flow. In the very short term we can say that the receipt of US$25 million from the United States, which is most welcome, will enable us to progress through January, beyond that we are not able to say because we do not know who are the other member countries who will pay - certainly in the first quarter. As soon as we obtain the information we will certainly review it with the Finance Committee in great detail so that the best management can be exercised.

There were some questions raised with respect to forward cover of lire. There may be some misunderstanding on what it is, and how it works and also on the basis for taking the decision. First, I should like to explain that the Director-General took the decision, shortly after he was elected to his first term, to appoint an Investment Advisory Committee. It is the only United Nations organization with such a Committee. The Committee was appointed to assist him in establishing a basis on which he can realistically use the best banking facilities available to accrue the greatest amount of miscellaneous income. After the plans are discussed and information obtained from the members of the Investment Advisory Committee they are reported to the Finance Committee. I should say that this Committee is made up of very renowned experts from the World Bank, the International Monetary Fund, the Central Bank of Italy, the Commercial Bank in Europe, and the International Bank of Settlements, and also from the bank that handles two of our investments for compensation plan and for our separation payment plan. These experts are in a position to provide us with a great deal of guidance. They did recommend that we entered into contracts for forward cover of lire. This plan was also described to, and discussed with, the Finance Committee on two occasions and is included in the report before the Council today.

The forward cover of lire is a device that was both important and necessary to avoid the problems created by the rapid fall in the dollar that we experienced in the prior biennium. If we had had both the information and knowledge during the prior biennium that is available to us now it may be that we could have avoided at least some of the exchange loss which amounted to almost US$29 million and charged either to the Special Reserve Account or to the budget for the prior biennium. The Director-General took the decision after advice he had received to enter very carefully into lire/dollar contracts for forward cover by looking very carefully, month by month, at the needs we would have for lire. you will recognize that a large percentage of our expenditures (roughly 60 percent of our total expenditures) are made in lire. That means since our budget is assessed in dollars and is collected in dollars the major part must be converted to lire.

That is where the conversion loss may occur, or conversion gain, depending upon the weakness or the strength of the dollar. The budget rate was set in November a year ago at 1235 lire per dollar. At that point in time the Director-General authorized entry into contracts for forward lire for 1988 month by month. We went out to tender for a number of banks and their quotations based upon spot rates for that particular day and were able to obtain contracts in every case substantially above the budget rate of 1235. That provides an insurance policy that there would not be a loss on exchange resulting from the direct exchange from dollars to lire. To the degree that there is a profit that results from that, because there is another element that you must also understand, that profits then would be ultimately credited to the Special Reserve Account. Mr. Shah will go into a little greater detail on the Special Reserve Account itself.

With respect to the forward lire cover, in addition to the Finance Committee, the Advisory Committee on Investments, the experience that has been gained by other UN organizations, the World Bank and IMF, and now ILO, who also enter into forward contracts, the ACABQ was here last March and had a great deal of interest in it. It was discussed with them and they commented that at the moment that


was an excellent idea and wondered why other UN agencies did not enter into it. I do not want to deviate too far on this but we have a unique situation in Italy where the interest cost on lire happens to be higher than the interest cost on dollars. And the same is true on investments. With that differential we are able to enter into contracts for forward lire without the cost of any commissions or any other costs related to handling. The interest differential in our case is positive going from dollars to lire. Therefore we are able to enter into such contracts without cost and with a protection to the agency. The Organization should therefore benefit to the degree that after we have entered into a contract at a specific price for delivery of lire the dollar happens to go up above that contract price there could be a small incremental loss during that period. The base gain, however, between the budget rate and the rate at which we delivered the contract price would otherwise have been lost had we not entered into the contract. Therefore if there is a nominal loss in any one month, overall there is a net gain. So in total I think the Organization stands to gain and the governing bodies stand to gain because we will not have to offset additional cost by virtue of the fact that we have very little money in the Special Reserve Account to settle any exchange losses at this point.

There were a few other specific questions that I would like to address. The question was raised as to whether or not the Organization could enter into arrangements for receipt of contributions from small Member Nations by using instalment plans. Here I think we are guided specifically by the Basic Texts. Financial Regulation V requires that payment of contributions be made upon the receipt of official notification of amounts due in January of each year. Only the Conference can change this. All countries are encouraged to advise the Organization as to the timing and amount of their payment and we certainly welcome such information and if a country decided that their economics said that they would make a payment each month or something and notified us so that we could plan accordingly even that information would be helpful. There is no way that the Organization at this point in time can authorize payments other than as is called for in the Basic Texts. So our specific answer must be that we must comply with the Basic Texts and encourage all Member Nations to pay within 30 days of the receipt of the bill which would be due in January of each year.

One additional question was raised with respect to having bank accounts opened separately for the Regular Programme and Trust Funds and whether or not this would create a degree of rigidity and inflexibility that would complicate cash management in Treasury. It is quite the opposite. In an effort to be as accurate as we possibly can and make certain that there is no co-mingling whatsoever of funds we have found that it is not only important but necessary to set up individual bank accounts and carefully account for both the investments and interest from Trust Funds directly into those accounts, as opposed to all the transactions that occur in our various Regular Programme bank accounts. It provides an extra means of internal control, each of which of course are carefully monitored and audited by the External Auditor.

I think I have complied with the requests for both specific information and reports. If I have missed any I would be happy to extend them further, but I believe that Mr. Shah has a couple of further clarifications.

LE PRESIDENT: Je remercie M. Crowther de ces informations précises et précieuses et je donne la parole à M. Shah.

V.J. SHAH (Assistant Director-General, Office of Programme, Budget and Evaluation): Mr. Chairman, I will address myself only to a couple of questions on which I might offer replies. First, the delegate of the Federal Republic of Germany queried the necessity for the replenishment of the Special Reserve Account and suggested that the Finance Committee look into the matter. His suggestion was based on the stated assumption that since the forward purchase of lire protected the Organization with regard to the budget rate there was no need for a Special Reserve Account. I regret that I must clarify that that assumption is not valid. The Special Reserve Account according to Conference Resolution 13/81 was established not only to deal with the extra costs due to movements of currency exchange rates. The Special Reserve Account has two other functions. The other established functions are, firstly, to finance budgetary expenditures pending receipt of contributions from Member Nations whenever the Working Capital Fund is insufficient and, secondly, to finance unbudgeted costs, extra costs, of approved programmes, with the prior review and approval of the Programme and Finance Committees. These two important needs are unaffected by any forward purchase of lire.

I would also indicate that in fact the needs of the Special Reserve Account have to be looked at in a broader context, on which we intend to consult the Finance Committee and on which in due course the Finance Committee will of course report to the Council.


The other question which was raised was about the cost of the Review. It was stated, again by the same delegate, that the cost of the Reviewshouldnot be a charge to the Special Reserve Account. Mr. Chairman, this matter will be coming up for your consideration when you examine the Progress Report on the FAO Review, and with your permission I would keep my reply for that occasion. It would be more appropriate to respond to it at that time.

Saihou SABALLY (Gambia): I am sorry to come late but I think this topic is extremely important. It is important because without regularizing the financial situation we are in trouble for any other agenda items that we may want to discuss.

I want to make two concrete proposals. One is that in view of the balance of payment problems affecting some of the developing countries, particularly in Africa, is it not possible for the Secretariat to consider the possibility of using part of our contributions in local currency to be utilized by your country representatives? If that is possible I think that will ease the burden of bank transfer and it would be a saving because transferring money from the Gambia, for instance, to Rome we pay interest charges and maybe the same amount, or half of that amount, is transferred from Rome to your Banjul Office. So if there could be a mutual arrangement for the Gambia to pay part of our balance which is deposited in the Central Bank to your representative in Banjul that would ease the burden of the balance of payments for the Gambia and will also save you from bank charges. So if this is in accordance with your regulations perhaps it would be a good idea to start to introduce that.

My second proposal is that in view of the importance of this matter and in view of the appeals that came from different delegations in this Conference room to the United States to try and help us to pay their contributions I would like to make a proposal that this Council agrees to send a small delegation to Washington, to leave the time with the Chairman and the Director-General, as an expression of the seriousness of the financial situation and as an expression of our concern for this situation to be redressed. The Council would perhaps like to manifest this by sending a small delegation to Washington to speak directly to the US Administration. I believe in dialogue and I think that the possibilities are there for them to see this in its real gravity if there is a small delegation from the Council to the US Administration.

These are two concrete proposals that I would like to bring to the Council. I am sorry to bring them late but I think they are important.

Paul BRYDEN (Australia): Mr. Chairman, I will be very brief and seek your guidance on the request from the Special Joint Session of the Programme and Finance Committees that the Council approve the measures set out in paragraphs 1.10 to 1.12 in document CL 94/4. I think it is an issue which appears to require a decision of some kind.

LE PRESIDENT: Je vais déjà répondre à cette question très importante. Je crois que nous examinerons cela dans le cadre d'un autre point, le point 14. Il s'agit d'une question très importante et je vous remercie de l'avoir posée.

Sra. Maria Eulalia JIMENEZ (Observador de El Salvador): Le pido disculpas Sr. Presidente, pero ml delegación esperaba que usted invitara a los Observadores a hacer uso de la palabra. Tengo una pequeña intervención que hacer, para lo que solicito su venia.

La grave situación económica por la que está atravesando nuestra Organización ha sido expuesta en forma muy clara por el Director General en su discurso inaugural· El nos ha indicado cómo ha sido necesario reducir actividades y servicios de la FAO los cuales, en muchos casos son fundamentales para países como el mío que no cuentan con facilidades de información, por ejemplo, con las que sí pueden contar los grandes países desarrollados. Para ellos que no se envíe a sus Ministerios de Agricultura la revista CERES o UNASYLVA, carecerá de importancia. Para mi país es una fuente de información importantísima. Esto para mencionar sólo uno de los muchos recortes que ha sido necesario efectuar. La reducción de misiones de evaluación técnica de los programas de capacitación, son todos aspectos que van minando el trabajo eficiente de la Organización, con consecuencias funestas para los países en desarrollo, para los países donde sí se sufre el hambre. No deseamos, y así se lo pedimos al Director General, se hagan más recortes a nuestros Programas de


Labores y Presupuesto. Este fue aprobado por la Conferencia y todos los Estados Miembros tenemos el deber de defenderlo, y para hacerlo debemos, en primer lugar, cumplir con nuestras obligaciones; todo, claro está, en la medida de nuestras posibilidades.

Mi país, por ejemplo, no ha podido hasta el momento pagar la cuota de 1988, pero realizo grandes esfuerzos, grandes sacrificios para pagar la de 1987. Nuestro grano de arena pues, lo hemos aportado, aunque sabemos que un pago como el nuestro ayuda en muy poco a nuestra Organización, hemos querido con este esfuerzo demostrar nuestro total respaldo a la FAO en estos difíciles momentos. Decía, 24 mil dólares, nuestra cuota, no ayuda en mucho; 100 millones de dólares, sí. Esos son fundamentales para la vida de la FAO.

Ser miembro de una organización internacional implica deberes, y obligaciones los cuales deben ser atendidos sin condiciones, sin contrapartidas, es una obligación establecida y debe ser respetada.

Permítame, Sr. Presidente, para concluir, manifestar el agrado de mi delegación de verlo presidir nuevamente nuestro Consejo y felicitar a los Vicepresidentes que fueron elegidos.

James AITKEN (United Kingdom): Thank you very much, Chairman. Very briefly, through you, I would like to remind the Secretariat that in our intervention yesterday we did ask for some detail about the rationale behind the selection process for the items which were deferred. I do not think this was in fact covered in the Secretariat's response. I do not want to pull on this debate, but I do think it would be useful to have some information when we come to discuss the report of the Programme Committee under item 13.

LE PRESIDENT: Peut-être peut-on demander d'ores et déjà à M. Shah de bien vouloir répondre à cette question précise.

V.J. SHAH (Assistant Director-General. Office of Programme, Budget and Evaluation): Certainly Mr. Chairman. I think the distinguished representative of the United Kingdom has given the answer in his statement just now, that the programme adjustments which have been made this year were considered by the Programme Committee at its session in May. The views of the Programme Committee are covered in its report, which comes to you under item 13 of the agenda, and that is exactly where we would give every further clarification that may be needed, and I believe that is satisfactory to the representative. Thank you, sir.

RIGHT OF REPLY
DROIT DE REPONSE
DERECHO DE REPLICA

Fred J. ECKERT (United States of America): Thank you, Mr. Chairman. Earlier in the debate on this agenda item, about the financial position of FAO, the delegate of Colombia, Mr. Bula Hoyos, claiming to speak on behalf of the Govenment of Colombia, called my country arrogant and referred to our President as a most unfortunate memory, and characterized the election of George Bush as cause for anguish and sadness. Mr. Chairman, Mr. Bula Hoyos thinks he is funny. He is not: he is foolish. He has once again insulted my country, and demeaned this Organization and, once again, his conduct is an embarrassment to his own country. He should have been ruled out of order.

Mr. Chairman, Mr. Bula Hoyos claims to speak for Colombia. I do not think that is true. Mr. Chairman, fellow delegates, I challenge him to produce any evidence, any, that the Government of Colombia wishes its representative to insult the United States of America. Mr. Chairman, I challenge Mr. Bula Hoyos, to produce any evidence, any, that the Government of Colombia wishes its representative to refer to my friend and our President, Ronald Reagan, as an unfortunate memory. Mr. Chairman, I challenge Mr. Bula Hoyos, to produce any evidence, any, that the Government of Colombia views the election of my friend, George Bush, as cause for anguish and sadness. Mr. Chairman, Mr. Bula Hoyos cannot do that. He was faking it yesterday, as he so often does. He does not understand the difference between being funny and being foolish.

Mr. Chairman, Colombia has a good government and a good President. Too bad that that great country and that good President and the good people of Colombia are so poorly served here. Thank you.


Gonzalo BULA HOTOS (Colombia): Deseamos expresar nuestro más sincero deseo por que pronto el Embajador Eckert recupere su voz y pueda hablar on mejores términos.

Como se podrá constatar en las actas del Consejo, donde aparece nuestra declaración, en ningún momento hicimos referencia a los nombres del Presidente saliente Reagan ni del Presidente electo Bush. En ese momento, ni siquiera nombramos a su país por su propio nombre. Actuamos de esta manera, Sr. Presidente, porque estamos basados en la profunda convicción de que no obedece a prejuicios nacionales porque el Gobierno de Colombia mantiene las mejores relaciones con los Estados Unidos, ni a prejuicios personales porque nosotros tenemos el honor de creer que somos amigos de la gran mayoría de los Representantes de Estados Unidos.

Hemos insistido en nuestro punto de vista porque pensamos que así, y esto lo decimos sinceramente, sin ironía, ayudamos también a quienes como el Embajador Eckert -nos han informado- está preocupado porque su país honre los compromisos pendientes.

Como lo dijo ayer el Reino Unido, el Gobierno de Colombia desea también que los Estados Unidos vuelvan a ser aquel gran país que durante cuarenta años ha contribuido con su importancia y significación, y su riqueza también, a la solución de muchos problemas de la cooperación internacional·

Si en este Consejo nadie dice nada, si en nuestro Informe no aparece ninguna referencia a la situación que está padeciendo nuestra Organización, cuando nuestros colegas representantes de Estados Unidos regresen a Washington, podrán decir que su actitud puede seguir inmodificable, que nada está pasando, que nadie ha protestado. Este es el sentido de nuestra intervención, Sr. Presidente. Dar a los propios Representates de Estados Unidos, y repetimos que sabemos que el Embajador Eckert está interesado en mejorar esta situación, que tengan un instrumento para que presenten nuestras inquietudes ante el Gobierno de ese importante país.

Hace ya treinta años, presenté mis Cartas Credenciales ante la FAO, primero como modesto Agregado Agrícola en el año 1959 y después como Embajador hace diez años, en el año 1979. Creo que esas Cartas Credenciales son un título legítimo que garantiza el hecho de que yo represento verdadera y legítimamente al Gobierno de Colombia. Si el Embajador Eckert tiene algún documento posterior a esas Cartas Credenciales, puede presentarlo y así el Consejo decidirá si yo puedo seguir o no sentado en este sitio. Oportunamente, enviamos al Director General de la FAO là nota que acredita a la Delegación de Colombia. Pudiere ser que entre los representantes de mi país esté el modesto nombre del señor Bula Hoyos. Las observaciones que acaba de hacer el Sr. Eckert, lejos de inquietarme me llenan de complacencia, Sr. Presidente, porque yo quiero mucho a la FAO y vivo muy feliz en esta ciudad·

En casi todas las ocasiones en que yo hago comentarlos como estos, la Administración de los Estados Unidos envía quejas al Gobierno Colombiano y el resultado es que me confirman en mi cargo y me amplían las responsabilidades y la confianza de mi país. De manera que hoy estoy sumamente satisfecho. Quién sabe si podré estar aun otros treinta años aquí en el seno de esta Organización.

Fred J. ECKERT (united States of America): Thank you Mr. Chairman. I do not wish to prolong the discussion, but I will point out that the remarks of the United States of America in no way criticize Mr. Bula Hoyos, or anyone, for differing with the policies of the Government of the United States at any time. This is a free body of sovereign countries, and the view is that public policies of the American Government are open to discussion and debate and criticism, and that is perfectly legitimate. At no time, at no time, did I criticize anyone for criticizing us on a policy, nor would I ever. That is what we are here to do. Nor would my comments about a country's policy be in any way a criticism of the country's people or its administration. Mr. Bula Hoyos repeatedly crosses a fine line. As you recall at the Conference, the Chairman of the Conference publicly, from the forum in the other room, made precisely the same criticism I made when derogatory remarks were made about his country Kuwait, and his country's region, the Middle East, by Mr. Bula Hoyos. I am making remarks of the same nature that the Chairman of the Conference made about that same point, and that we have made before.

I did not say Mr. Bula Hoyos was not properly accredited here as a representative. I challenged whether the views that he expressed are views shared by the President of Colombia, whom he serves. I know from what I know of that President, and what I know of that country, and what I know of its people, that they, the Government of Colombia, does not have a view of our President that was expressed by its country's representative here. I know that the Government of Colombia does not have a view of Mr. George Bush.that was expressed here. I know and you know and everyone knows it is just plain foolish and silly to pretend when you refer to it that, because you do not name the outgoing President or the incoming President, no one knows it is Ronald Reagan and George Bush.


Mr. President, I do not like having to make these points. I felt that our country should have made them yesterday. I was not here; I was in the United States on my way to Rome. Had I been here, I would have made them last evening. I make them today to try to make a point which I think is in the best interest of the Organization. We have differences. There are many countries which have differences between one another but there is a fine line to be aware of and we should conduct ourselves on the policies, and to make repeated demeaning remarks - and Mr. Bula Hoyos I must tell you in all candidness that your country is an easy shot for demagogic rhetoric in my country because of the problems that your government faces on the very sensitive subject of drug trafficking and we could make jokes, insulting remarks but I know that your Government has engaged in many courageous activities that are poorly understood. I know that your people are struggling with a difficult problem and doing it well and so I will speak in no way disrespectfully of the problems you face in your country; in no way disrespectfully of your administration; in no way disrespectfully of your people and I expect the same.

LE PRESIDENT: Je vais donner la parole au Représentant de la Colombie, mais je souhaiterais que nous puissions ensuite arrêter la discussion.

Gonzalo BULA HOTOS (Colombia): Hace poco, cuando salí de esta Sala y me acerqué al Documents Desk observé que del corredor que conduce al Nordic Lounge, salía un señor un poco corpulento, vestido de azul a rayas, con una calvicie ligeramente incipiente, con los ojos rojos encendidos, las pupilas un poco desorbitadas sobre las cejas, la boca espumosa llena de saliva espesa…

Yo le pido que me permita el derecho de réplica, Sr. Presidente.

Como esos son síntomas inconfundibles, por lo menos eso me han dicho, solo esas condiciones podrían justificar la declaración que acaba de hacerse, porque las más altas autoridades no sólo del Gobierno de Colombia sino de muchos otros países han demostrade que el problema de la droga no es la producción sino el consumo a alto nivel en la sociedad de los Estados Unidos.

Fred J. ECKERT (United States of America): I did not expect Mr. Bula Hoyos to exceed his own level of foolishness! I thought that was a standard hard to match.

Mr. President, enough foolishness, enough silliness. I make the point. I hope Mr. Bula Hoyos does not speak again. If he does, I will not speak again because I think every time he opens his mouth, he insults his country. It is finished.

LE PRESIDENT: Je donne encore la parole à M. Bula Hoyos mais j'arrêterai ensuite la discussion car nous n'allons pas continuer indéfinimment·

Gonzalo BULA HOYOS (Colombia): Yo no puedo dejarme insultar por quien cree que puede asumir la vocería de mi propio país. Creo que es lamentable este incidente, Sr. Presidente, y que no debe repetirse en el seno de este Consejo.

LE PRESIDENT: Je regrette beaucoup cet incident, et j'exhorte encore une fois tous les délégués ici présents à avoir devant eux au cours de nos débats les problème de fond que nous avons à traiter. Nous pouvons exprimer nos points de vue, tout en essayant, dans la mesure du possible, de garder à nos débats la sérénité et le recul nécessaires pour faire face à nos obligations.

Nous allons donc de l'avant'et nous reprenons notre sujet qui est capital pour l'Organisation. Je suis persuadé que tous les délégués ont présent à l'esprit que la situation financière de la FAO est vitale, et j'espère vivement que pour cette question et les questions à venir nous concentrerons tous nos efforts sur le fond du sujet. Personnellement je veillerai à éviter tout débordement.

En ce qui concerne l'item que nous traitons aujourd'hui je dirai, pour résumer le débat, que le Conseil est particulièrement préoccupé par la situation financière, très grave et sans précédents, à


laquelle se trouve confrontée notre Organisation, la FAO. Cette situation est due à des retards de versements de plusieurs pays, dont le principal bailleur de fond, et à des incertitudes quant au montant et aux dates auxquelles seront réalisés des versements ultérieurs.

Cette situation est grave, malgré l'effort consenti par notre Organisation jusqu'à présent qui a permis de réaliser des compressions de ses activités, compressions qui ont quand même terni, il faut le dire, son efficacité et son rayonnement dans les Etats récipiendaires.

Dans ces conditions le Conseil exhorte vivement les Etats Membres qui ont des retards de versements, et également le principal contributeur, à prendre les mesures nécessaires pour effectuer les versements des arriérés, et suggère au principal contributeur, dans l'esprit de la déclaration présidentielle de septembre 1988 fixant les engagements de ce pays à l'égard de l'ensemble du Système des Nations Unies, de procéder au règlement de sa contribution.

Je crois comprendre que la majorité des membres du Conseil considère que des réductions ultérieures de programme seraient dommageables pour les activités de la FAO et que le niveau actuel de réduction a atteint un point qui ne saurait être dépassé.

Le Conseil ne pourrait pas consentir à une nouvelle réduction de programme pour 1989 et il appartient au Directeur général, dans le mandat qui lui a été confié par la Conférence générale, de prendre les mesures financières qu'il estime utiles pour faire face à la situation dans les conditions les moins dommageables.

D'autres pays ont souhaité que le niveau des dépenses tienne compte du niveau de recettes. Cela ressort de nos discussions.

Mais je crois qu'il m'appartient de joindre ma voix à ceux qui ont demandé vivement que tous les délégués ici présents, qui sont des ambassadeurs de leurs pays, usent de leur influence pour montrer combien 11 est important que notre Organisation puisse accomplir son travail pour le plus grand biendes êtres vivants.

Tous ici connaissent le travail de la FAO et son importance pour lensemble des pays du tiers monde en particulier, et 11 est essentiel que nous puissions compter sur l'influence des représentants des différents pays pour améliorer le niveau et la cadence des versements des contributions.

Nous allons maintenant passer au point 4 de notre Ordre du jour.

II. WORLD FOOD AND AGRICULTURE SITUATION
II. SITUATION MONDIALE DE L'ALIMENTATION ET DE L'AGRICULTURE
II. SITUACION MUNDIAL DE LA AGRICULTURA Y LA ALIMENTACION

4. State of Food and Agriculture 1988
4. Situation mondiale de l'alimentation et de l'agriculture 1988
4. El estado mundial de la agricultura y la alimentación, 1988

LE PRESIDENT: Nous allons aborder maintenant le point No 4 sur la situation mondiale de l'alimentation et de l'agriculture en 1988. Ce point sera divsé en deux grandes parties:

- Situation mondiale de l'alimentation et de l'agriculture en 1988 - Document CL 94/2, et son supplément 1;

- Situation acridienne en 1988 en perspective pour 1989 - Document CL 94/2, Supplément 2.

Je souhaiterais, avec votre permission, que nous traitions ces deux parties séparément: en premier lieu la situation mondiale de l'alimentation et de l'agriculture en 1988, puis cette discussion terminée nous aborderions la situation acridienne compte tenu de son importance pour un grand nombre de pays, notamment en Afrique et en Asie.

J'invite donc Monsieur Hjort, Directeur de la Division Analyse des politiques, à bien vouloir présenter la première partie de ce point.

H.W. HJORT (Director, Policy Analysis Division): I shall be introducing the first two documents that the Chairman has mentioned, those being CL 94/2 and CL 94/2 Sup. 1.


This year we have once again seen the major impact that natural events - droughts, floods, hurricanes, locusts, and so forth - can have on agricultural performance, in the most developed and poorest countries alike. FAO's initial estimates of food and agricultural production during 1988 place world agricultural production only fractionally above 1987, when it registered a slight decline. The relatively small increase in 1988 world food production was about the same as the prior year decline, soon a global basis food production this year was essentially at the 1986 level. Therefore, the modest increase in world food consumption over the prior and current seasons has come entirely from a drawdown of stocks. The Director-General has also called attention to the cereal situation, noting that cereal stocks are expected to be drawn below the minimum levels required to maintain world food security this season. According to current estimates, in 1989 global cereal output must increase by over 220 million tons, or 13 percent, to maintain consumption trends and replenish stocks to the minimum level required for world food security.

Food and agricultural production in the developed countries declined in 1987 and by an even larger percentage in 1988. The decline this year was concentrated in North America where a severe drought led to sharply lower crop yields from a planted area that had been curtailed by government programmes. Restrictions on plantings for 1989 cereal crops have been relaxed in the United States and, although income and price support levels have been reduced in that country, higher market prices are expected to induce a significant increase in North American plantings of cereals and oilseeds. This should lead to an increase in output provided weather conditions remain normal. Although 1988 was a higher production year than 1987 in most of the other developed country regions, the increases since 1986 have been quite small; food production in Eastern Europe and the USSR may have remained below the 1986 level.

Both food and agricultural production in the developing countries as a group were well above the 1987 level, but the Increases in the Asian centrally planned economies and Latin America and the Caribbean region were small compared with the prior year. Recovery from the sharp 1987 decline in the Far East region was most pronounced. The African region also experienced a marked increase from a reduced 1987 level, with the growth rate about the same as in the Near East. Nevertheless, the increase in food production over the past two years has been smaller than the increase in population for most of the developing country regions and countries. There were declines in per capita food production in 78 of 108 developing countries in 1987 and in 58 of the 108 countries this year, including two-thirds of the African, 54% of the Latin American and the Caribbean, 442 of the Near Eastern and one-third of the Far Eastern countries.

The overall economic climate in 1988 is more favourable to the consumption of agricultural products in the developed countries and in the Asian region. Growth in the production of goods and services is stronger, consumer price increases are relatively small, trade volumes have continued to grow and the terms of trade have improved a little. In contrast, the economic and financial situation continues to deteriorate in Latin America and the Caribbean - regional per capita output is declining, price inflation has become more severe, net capital outflow continues and the debt-service ratio has risen even though growth in export volumes is stronger and growth in import volumes is slightly slower than in 1987. Economic and financial conditions remain difficult in Africa and the Near East, where per capita output is declining and the terms of trade have worsened.

In general, the most difficult economic circumstances are found in the heavily-indebted and the oil exporting countries as well as the majority of low income countries. Crude oil prices have declined, and external debt continues to climb to ever higher levels, with the increase in lending mainly from official sources. Developing countries, especially the heavily indebted and, geographically, in the Latin American and Caribbean region, have been paying more in amortization, interest and transfer of investment income abroad than their capital inflow since 1984. The net outward transfer, according to the United Nations, exceeded $ 20 billion in each of the past three years, and the limited information available so far for this year suggests a further increase.

A second major constraint on the performance of the world economy is structural imbalances. The need to correct the imbalances among the industrialized countries has become increasingly evident, in view of their negative impact on the international economic environment. As the Director-General stressed, many developing countries have undertaken major economic adjustments, often at high economic and social costs. They have not seen their efforts adequately rewarded in the form of sufficiently increased export earnings and restructured or reduced debt so that economic growth and social progress could resume. The search for solutions to debt-related problems has focused more on the low income countries than on the middle income debtor countries.

Another major policy issue concerns trade liberalization, particularly in agriculture. Besides their adverse effects on farm trade, the current agricultural policies of the majority of the industrial countries are having a negative impact on world-wide economic growth and on merchandise trade as a whole. It is, therefore, to be hoped that the forthcoming mid-term review of the Uruguayan Round will show significant progress.


Nevertheless, the world economy is growing faster in 1988 than anticipateci earlier, and this has stimulated growth in world trade. Among the developing regions, Asia continues to record the strongest growth in trade, although export growth is well below the exceptional rates for 1987 and 1986 and below the rate for imports this year. Trade growth is improving compared to 1987 for the other developing regions and the industrialized countries, but there has been a sharp deterioration in the terms of trade for the Near East. Africa has also experienced a decline in the terms of trade and trade growth is negligible. The gap between export earnings and outlays for imports has widened in Latin America and the Caribbean, where the debt-service burden is extreme.

Document CL 94/2, the Sup. 1 - which was just recently tabled - presents the latest agricultural trade estimates which are for 1987. It reports that, against a background of a vigorous expansion of total merchandise trade, agricultural trade was also buoyant. World exports of fishery and, to a lesser extent, forestry products, showed the most dynamic expansion. However, it is mainly the developed and some Asian countries that benefited from the expansion in agricultural exports. Export earnings from agriculture declined in a large majority of developing countries. While depressed prices of several important commodities largely explained this setback, many countries -particularly in Africa - also faced supply-related problems that reduced the volume of their exports. On the other hand, lower international prices enabled a majority of developing countries to increase the volume of their food imports in 1987. However, in the current season, as a result of the rise in prices coupled with an expected large decline in food aid, many low-income food deficit countries are likely to face difficulties in financing food imports.

For this year, it is expected that growth in the value of world agricultural trade will at least equal that of 1987; however, this growth would arise almost entirely from the increases in price, rather than volume; and in food and feed products, rather than beverage crops and raw materials. The terms of trade and purchasing power of agricultural exports sharply deteriorated last year in developing countries, more pronouncedly in Africa and Latin America and the Caribbean.

Incomplete data prevent an accurate estimate of the changes in terms of trade and purchasing power of agricutural exports for the whole of 1988. However, recent trends in agricultural prices suggest that for most major agricultural commodities prices are likely to exceed the average levels of 1987. Trade prices are considerably higher than a year ago for most non-fuel commodities such as metals, cereals, oilseeds and vegetable oils, and less so for coffee. The main exceptions include crude oil, cotton and cocoa prices.

Mr. Chairman, the two documents also discuss recent trends in external resource flows to agriculture. Concessional multilateral commitments in 1987 rose considerably above the previous year's low figure. In a longer term perspective, however, this welcome development appears less encouraging. Concessional multilateral commitments in real terms were only slightly higher in 1987 than the average of the previous three years. Also, non-concessional commitments sharply fell in 1987 from the exceptionally high level of 1986. On the positive side, we must welcome the sharp increase in soft loans to agriculture by the IDA in 1987 and 1988, and the considerable increase of the World Bank's total authorized capital, which will benefit agricultural investment in the future Mr. Chairman, document CL 94/2 also contains an assessment of the food and agricultural performances in the different developing and developed regions, and a review of issues of specific relevance to each of them. In the interest of time, I will only touch on the highlights among the developing country regions. In Africa, significant policy reforms have been initiated since the launching of the UN Programme of Action for African Economic Recovery two years ago. However, the success of the programme will depend as much on the external environment as on internal policy measures. The poor and erratic monsoon of last year badly hit agriculture in large areas of the Asian and Pacific region, although, as previously noted, a good recovery has been achieved this year. China is facing a critical transitional period in its attempts to give markets a larger role in its economy. In Latin America and the Caribbean, the protracted economic and financial crisis has engendered a reappraisal of past development strategies and the role of agriculture within them. Prospects for agricultural-based growth in this region are constrained by slow growth in domestic demand for and external constraints on exports of agricultural products. In the Near East, sharply reduced export earnings in oil-exporting countries and structural adjustment programmes in several non-oil countries are imposing consumption and import restraints and low levels of investment. Even so, the oil-exporting countries continue to subsidize farm activities while non-oil countries have introduced various measures to improve producer incentives and favour agricultural investment.

In concluding, I wish to remind the Council of changes in the preparation and scheduling in the two documents before you that comprise The State of Food and Agriculture, as reported in CL 94/4, that includes the report of the 55th session of the Programme Committee.

At the last session of the Programme Committee held in September, we apprised them of changes proposed by the Secretariat and approved by the Director-General to make the SOFA a more attractive, readable and timely document. The proposals were that SOFA should revert to its earlier role of


being a Conference or Council document in its own right, and to be published in July. In addition, it would be updated and revised by two discussion papers finalized in July and October respectively, which would be cross-referenced to it and would highlight trends and issues which emerged since the preparation of the main report.The main SOFA would continue to include a special chapter on a selected topic. Information would be more timely and presented on a continuing rolling basis. The SOFA would be produced by the same means as before but exploiting to the maximum the opportunities offered by modern technology, so it would be presented in a way more likely to be used as a source reference by policy fora and the media.

In welcoming these proposed changes, the Programme Committee noted that they would be introduced in. 1989. Therefore, with the concurrence of Council, the SOFA documents before you represent an intermediate stage. They, and the special chapter on natural resource use and sustainable development, will become SOFA 1989 which will be published in July of that year.In turn, SOFA 1989 will be revised and updated by two discussion papers produced in July and October 1989, and following their discussion by the Conference, will form the basis of SOFA 1990.

LE PRESIDENT: Je remercie M. Hjort, Directeur de la Division de l'analyse des politiques, de sa communication introductive.

Avec votre permission et avant de lever la séance, je vais donner la parole à M. Trant, Directeur Exécutif du Conseil mondial de l'alimentation.

Gerald Ion TRANT (WFC): I am pleased to have the opportunity to address the ninety-fourth session of the FAO Council under the item "The state of food and agriculture".As well reported in the Council's documentation (CL 94/12) the fourteenth ministerial session of the World Food Council, held in Nicosia, Cyprus, from 23 to 26 May, adopted significant conclusions and recommendations which, in my view, represent an important contribution to the activities of the international community in its global fight against hunger and malnutrition.

These conclusions and recommendations reconfirmed the general concern expressed last year in the Beijing Declaration regarding the untenable trends of growing hunger and malnutrition.May I draw your attention especially to the "Cyprus Initiative Against Hunger in the World", which was adopted by consensus as the main outcome of the Council session.The Secretary-General of the United Nations, last July, expressed his personal support for this Initiative and called on governments and International organizations to cooperate fully in its implementation. Later on, the Conference of Ministers of the Non-Aligned Movement held in Cyprus in September of this year and the Conference on Absolute Poverty in Latin America held in Colombia in August 1988 also welcomed the Cyprus Initiative and called for its support by all concerned.

Ministers of the World Food Council had considered at length a proposal for an International Hunger Initiative based on increased concessional food transfers from the then above normal stocks of food-surplus developed countries and the efforts by developing countries to alleviate hunger and poverty.The proposal met with widespread interest and support, but it was observed that food "surpluses" and hunger were separate problems. It was felt that the proposal represented a limited contribution to the much broader efforts required to address hunger problems. Keeping in mind that past policies and programmes have not succeeded in reducing hunger and malnutrition, that future progress will depend on a better understanding of the reasons for our lack of success and that more studies will not feed hungry people, the Council decided unanimously to launch "The Cyprus Initiative Against Hunger in the World".The Initiative calls "for-an urgent review and assessment of the efforts made to-date in hunger reduction and the Identification of ways of improving current policies and programmes and of pragmatic, feasible and potentially effective new initiatives towards meeting the Council's fundamental objective: the elimination of hunger and malnutrition."The Council's President, Eduardo Pesqueira, was asked to present a full action-oriented report at the Council's fifteenth ministerial session in mid-1989.

At a meeting with the representatives of the World Food Council members, held in New York at the United Nations Headquarters on 19 October this year, the WFC President as requested by the Council's ministers has established an informal ad hoc consultative group which will assist him to:

(a) review and assess the policies and instruments at present available to combat chronic hunger and malnutrition in developing countries, particularly in low-income food-deficit countries, and identify the reasons and obstacles which may have hindered their greater impact; (b) consider concrete and realistic measures that could make existing policies and instruments more effective; (c) identify workable initiatives;(d) recommend a course of action to combat hunger more effectively


The members of the consultative group are: Madagascar, Somalia and Zambia for Africa; China, Cyprus, Japan for Asia; Colombia, Uruguay, Honduras (to be replaced by Guatemala in January 1989) for Latin America and the Caribbean; for Western Europe and other states: Australia, France (supported by EEC), United States of America. The socialist States of Eastern Europe have still to confirm the names of the countries which will participate in the Consultative Group, but we expect an answer from them shortly.

Following the Council session, the WFC President and I have had a number of contacts and consultations with member governments and the heads of United Nations and other international organizations concerned in order to obtain relevant information and advice regarding the work to be undertaken by the consultative group. In this context we are particularly pleased with the support given by the Director-General of FAO after the Cyprus session as well as the FAO statement made during the debate at the United Nations General Assembly on the Council's report.

The Cyprus Initiative Against Hunger in the World is being taken, as our friend Howard York observed, at a time when development prospects do not call for optimism in any part of the world when world grain harvests have been reduced and supplies are tight.Economic and social objectives are in conflict and austerity programmes are contributing to the deterioration of the living conditions of millions of people who are already affected in their daily life.

The first meeting of the consultative group will be held in Paris on 19-20 December 1988 at the OECD Headquarters.It will take a hard look at both the short or immediate-term objectives and link them to the medium- and long-term development process which should give increased attention to the social aspects affecting the world's population.

The role of the consultative group in dealing with these issues will be of great importance. Action at the economic and social level can be taken only if the highest national authorities are behind it. Since it is they who will have to seek ways and means to reconcile social and economic priorities within their national development plans. The international community - donors and agencies alike - for their part will have to adjust their assistance programmes more adequately to the real needs of the developing countries and also seek for improved coordination in their support.

As the political organ of the United Nations system regarding food issues, the World Food Council will not try to do what other organizations are doing or should do, but will consider and recommend at its forthcoming session in Egypt, May 1989, some concrete measures which should include a series of economic, social and technical measures for action by nations and the international community supported, hopefully, by a more determined political will.The WFC member countries will have to be fully involved in the preparation of the implementation of the Cyprus Initiative and contribute energetically to the proposals which should mobilize the international community to translate them into real action. These will be presented to the fifteenth ministerial session of the Council in Cairo.

FAO has a major role to play in the preparation of the implementation phase of "The Cyprus Initiative Against Hunger in the World" which should embody all the priorities as reflected at both national and international level, so new directions can be drawn up by all concerned to speed up action against hunger and poverty in the world.

LE PRESIDENT: Je remercie M. Trant de sa communication.

Amin ABDEL MALER (Liban) (langue originale arabe): Je voudrais une précision en ce qui concerne la procédure que nous allons adopter. On nous dit que le criquet pèlerin porte préjudice à l'agriculture et l'alimentation. Pourrions-nous donc faire des commentaires sur les deux questions en même temps? Je pense que ce serait préférable et que cela nous permettrait de perdre moins de temps ·

LE PRESIDENT: Nous pourrions effectivement entendre la deuxième communication sur l'invasion acridienne et permettre aux délégués d'intervenir sur une question et sur l'autre. Mais j'aimerais que nous ne perdions pas de vue l'acuité et l'importance politique du problème acridien pour les Etats africains et asiatiques, pour tous les Etats dévastés. Il est bon que l'on sache urbi et orbi que le Conseil a traité la question.


Je veux bien que l'on fasse les deux communications en même temps mais j'aimerais que le problème acridien prenne sa place dans nos débats. Les pays qui sont menacés par une invasion sans précédent ne comprendraient pas que le Conseil de la FAO se soit réuni et n'ait pas abordé cette question. Nous pouvons très bien examiner les deux questions ensemble - et je suis à la disposition du Conseil pour le faire - mais je dois vous dire que ce ne sont pas les mêmes personnes qui, du podium, répondront à vos questions sur les acridiens; ce seront d'autres personnes.

Pour la commodité du débat, nous pourrions peut-être terminer l'examen de cette question, puis appeler M. Brader et les autres experts du problème acridien, après leur avoir permis de bien se préparer, car le problème acridien est vraiment important.

Ma réaction personnelle, c'est que si le Conseil en convient, nous pourrions examiner les deux questions à part parce que la deuxième question est d'actualité et n'est pas moins importante que la première. Voilà donc ma proposition car, politiquement, c'est une question très importante pour les pays d'Afrique et d'Asie.

Juan NDIRY SANCHEZ (Cuba): Yo estoy de acuerdo en como ha dividido usted la cuestión, Sr. Presidente, así que espero para cuando se entre en un debate general.

The meeting rose at 12.45 h.
La séance est levée à 12 h 45.
Se levanta la sesión a las 12.45 h.

Previous Page Top of Page Next Page