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PART I - MAJOR TRENDS AND POLICIES IN FOOD AND AGRICULTURE (continued)
PREMIERE PARTIE - PRINCIPALES TENDANCES ET QUESTIONS DE POLITIQUES EN MATIERE D'ALIMENTATION ET D'AGRICULTURE
(suite)
PARTE I - PRINCIPALES TENDENCIAS Y POLÍTICAS DE LA AGRICULTURA Y LA ALIMENTACION
(continuación)

8. Progress in International Agricultural Adjustment (continued)
8. Progres accomplis en ce qui concerne l'Ajustement agricole international (suite)
8. Progresos realizados en el reajuste agrícola internacional (continuacion)

D. RICHTER (Germany, Fed. Rep. of)(interpretation from German) : The first progress report of the Director-General on the guidelines of a strategy for international agricultural adjustment indicates a positive development as a whole. Some areas of progress, however, could not be taken into consideration when the report was drafted and in particular the actual timetable for the negotiations in the various bodies dealing with questions of trade. Nor could the results of the Third Session of the World Food Council be included.

Regarding the subjects of guidelines 1, 2, part 1 of 3, 10 and 11, in this connection my delegation has already made its statement under item 6, The State of Food and Agriculture. This is why I should like to refer to this first statement and just add a few comments.

Developing and developed countries have made considerable efforts in order to implement the recommendations of the World Food Conference. These efforts will have to be continued because particularly in the MSA countries, or in the food priority countries, we find that the results are not yet satisfactory. Apart from making available the necessary resources, satisfactory incentives have to be created for agricultural production in the developing countries. The report quite rightly stresses that, in particular, it is necessary to take into consideration small farmers.

In part 2 of guideline 3 the report tries to analyse the role of the developed countries in the interna tional adjustment process.

I feel that we should not repeat the lengthy discussions which took place at the 17th and 18th general Conferences. However, once again I should like to point out that adjustment on a national and interna tional level is a lengthy and continuous process. It is a matter of adjustment on the farm level, the market level and also on the international level. All these processes of adjustment are closely related and inter-dependent and cannot be considered separately.

In previous discussions my delegation has stated quite - clearly that within the European Community all measures for adjusting agriculture can only be implemented step by step. Unnecessary hardships must be avoided, and social and environmental policy requirements must be taken into consideration. International adjustment cannot move faster than internal adjustment, and that is why I have certain hesitations in accepting the statement starting from paragraph 75 of the report which refers to the measures of the agricultural market policies of developed countries which are here represented in a schematic and isolated way from the point of view of international adjustment.

In paragraphs 87 and 88 the report acknowledges the contribution of developed countries to world food security. Within the European Community my government is pursuing the objectives of the International Undertaking on World Food Security. The European Community, in its agricultural market policy, also includes storage measures. In this way the Community is able to fulfill its commitment to the full extent. And it is in this light that the statements in paragraphs 89 and 90 are not very clear. At times of worldwide shortage we are making our contribution towards world food security; at times of surplus supply, all importing countries benefit from the dropping of world market prices. It is not very realistic to demand at the same time that developed countries should dismantle their internal market organization system and curb their production capacity, with all the implications domestically speaking, and negative implications for the world food situation.

There is agreement that theinterests of the exporting developing countries must be taken into consideration more and more.This aspect is part and parcel of the agricultural market policy of the European Community.I do not want to go into detail, but I should like to note that my country, within the framework of the European Community, is participating actively in multilateral trade negotiations, and the imports to my country of food commodities from developing countries have increased in terms of value regularly.Since 1970 they have increased by an annual rate of 9 percent, and from 1975 to 1976 by 23 percent.

In that connection, I should like to make a few comments regarding Guidelines 7 to 9. The pessimistic statements contained in paragraphs 120, 128 and 132 of the report regarding the progress of international trade negotiations have now become out of date. In the course of the last months progress has been achieved. Regarding multilateral trade negotiations within GATT, the agricultural group has adopted a very strict timetable with a view to completing negotiations by next spring, negotiations on those products for which no special agreements are planned. For tropical products which were given priority in the Tokyo statement the European Community implemented the proposals on 1 January 1977. Negotiations on meat and dairy products have been intensified, and this also applies to grain. Following the second session of the Preparatory Group within the framework of the International Wheat Council, it is expected that at the beginning of 1978 a conference for negotiations on a new grain agreement will begin. The negotiating conference on the Common Fund is taking place this month within UNCTAD.

The report mentions some satisfactory developments for the developing countries in the field of trade. For instance, in paragraph 141 it is stated that there is a very great increase in the value of agri cultural exports of developing countries, and in paragraph 138 and 145 it is stated that there is an increased proportion of processed products among these agricultural exports from developing countries.

In many developing countries preference is given to producing to meet their own domestic requirements. An extension of the processing industries in the developing countries aiming towards export means they would first of all have to check the chances of selling on the international market.

Guidelines 4 to 6 of the strategy for international agricultural adjustment deal with improvement of nutrition. The international community is well aware of the urgency of this task. I should like to recall the institutional changes in the united Nations system, and the clearly outlined task spelled out by the World Food Council in the Manila Communiqué.

Finally, I should like to say that we do not agree with the somewhat pessimistic conclusion contained in Part IV of the report regarding the eradication of hunger and malnutrition. In the preceding parts of the report we find that progress is noted in all areas, even though it is not satisfactory in all areas.At its third session, the World Food Council on the basis of the Manila Communique adopted in the view of my government a balanced and encouraging action programme, which stresses the keynotes for future measures. We therefore feel that the necessary conditions are provided for a further positive development in all these areas.

Mme E. MAMMONE LENER (Italie): J'espère ne pas déranger votre programme en vous présentant encore une fois une petite intervention de caractère général. Depuis plusieurs années, la délégation italienne suit avec intérêt les études de la FAO dans le secteur de l'ajustement agricole et c'est avec plaisir que nous constatons qu'à présent la conception d'ajustement agricole est toujours considérée comme la réalisation d'une politique des productions pour les exigences alimentaires nationales des pays et en premier lieu pour les cas d'urgence. Cette politique a un certain succès, mais les avantages qu'on espérait en retirer ont été plus limités que ceux qu'on avait prévus. A ce propos, la délégation ita lienne voudrait se rallier à ce qu'a .proposé le délégué du Bangladesh dans son intervention de ce ma tin, à savoir que, dans le prochain rapport, soit prévu un chapitre consacré à l'examen des causes qui ont empêché la réalisation complète des objectifs prévus dans les buts de la FAO.En particulier, nous voudrions qu'on examine l'influence exercée sur un pays donné par l'adoption de nouvelles technologies capitales et intensives, par exemple endettement excessif vis-à-vis de l'étranger et, par suite, ré duction même des programmes d'investissement.

Je voudrais ajouter qu' afin de rendre la politique d'ajustement plus efficace, c'est-à-dire pour satis faire les exigences alimentaires des pays en voie de développement, la délégation italienne estime né cessaire d'intensifier l'interdépendance et la coordination des politiques dans les différents Etats. Par conséquent, et en conformité avec ce qui est dit dans le document préparatoire de la Conférence, il faudrait fournir aux différents pays des indications permettant de définir en priorité les productions les plus appropriées dans chaque pays et les limites de surface de ces productions, en recherchant les critères permettant de définir, dans chaque pays en voie de développement, les objectifs de programmes d' autosuffisance alimentaire et surtout les degrés d' autosuffisance à considérer comme excellents.

Il faudrait encore transférer les expériences déjà faites dans les pays en voie de développement pré sentant des situations presque analogues; trouver des formes d'assistance technique internationale qui respectent chaque plan national de développement agricole et enfin choisir, parmi les instruments fi nanciers et les technologies utilisées par les pays industrialisés, les mieux appropriés à un usage plus rationnel des ressources et correspondant mieux à la situation économique locale.

Voilà les sujets sur lesquels la délégation italienne pense qu'il faudrait ultérieurement insister dans les prochaines études sur les ajustements agricoles, tout en reconnaissant que le document tel qu'il nous est maintenant présenté reflète tout à fait les suggestions qui avaient été données par la dix-huitième session de la Conférence.

W.S. STEELE (United States of America): My delegation would like to commend the Director-General on this first report to the Conference of progress made on International Agricultural Adjustment.The document is in general a well balanced and comprehensive treatment of the subject and the United States can support most of the material contained in the report. In particular, the delegation can endorse the broad assessment statement on international agricultural adjustments included in paragraph 30. We do, however, have some specific comments related to the individual guidelines discussed in the report. Many delegates have already spoken on guideline 1 and have covered the subject adequately, so I will not make any comments on that one.

Regarding guideline 2 covering the flow of resources into agricultural production, the United States recognizes the difficulty caused by the lack of information indicating the total flow of financial and other resources to agricultural production. However, it should be possible, with the cooperation of governments, for developing countries to develop a proxy indicator of such resource flows in much the same way that official development assistance has been used as a proxy to indicate total external flows. The most readily available statistic for this purpose is probably government expenditures in agricul ture. FAO should encourage and assist its members in providing this kind of information.

On guideline 3, National Policies, the discussion correctly notes that this guideline is probably the most important of the guidelines and recognizes the difficulties in monitoring progress to achieve it. As we have indicated previously, the U.S. is doing a number of things that directly relate to the issue of international agricultural adjustment. As I mentioned before, we are establishing a farmer-owned grain reserve of 30 to 35 million tons of food and feed grains designed to help offset the effects of a poor crop in the future. We are proposing a special-food reserve of up to 6 million tons of wheat to ensure that our balance and special food aid commitments can be met. We have proposed in the Interna tional Wheat Council the establishment of an international grains reserve system designed to ensure a greater decree of world food security, and moderate price swings, as well as to achieve agreement on measures for participating countries to modify their policies ao as to encourage greater adjustment . in production and consumption in response tó world supply conditions.

The United States also continues to seek ways to expand world agricultural trade in the multi-lateral
trade negotiations now going on in Geneva. We are also making some adjustmentsin acreage in produc
tion of wheat and tentatively in coarse grains to provide greater incentives for farmers to increase
production in future.

The set of responses expected from developed countries in paragraph 86 is generally acceptable, but should there not also be a similar list of responsibilities for developing countries?

Regarding guidelines 4 and 5 on nutrition, the United States welcomes the detailed review of recent activities in support of the development and implementation of integrated nutrition policies and strategies. But we would like to see greater progress on these guidelines. We would like FAO to either expand their present activities in order to make progress or if the current activities are still of doubtful effectiveness, substantially revise and redirect the programme so that progress can be made.

For guideline 6, the monitoring appears to have taken place at a level of aggregation which does not make it possible to determine whether progress has been achieved. The analysis instead should have focused on the MSA countries as probably the best list of countries with such balance of payment prob- léms,and then discussed differences in achievement of self-sufficiency within this group,

I will limit my comments to those guidelines at this time and intervene at a later stage on the remaining guidelines.

K. BEDESTENCI (Turkey): My delegation has examined the document C 77/20 before us. In general, my delegation consider the importance of applicability and the policy issues of the International Agricultural Adjustment that are suggested at the eighteenth FAO Conference.

We do appreciate the activities regarding the International Agricultural Adjustments taken by FAO. We know that the task is not simple. My delegation does not wish to go into the details of the paper C 77/20.

The achievement of the goals of the International Agricultural Adjustment is very much related with the development of the developing countries.

The basic solution of the problem in' the field of food and agriculture rests on increasing the food production. Both the developing and developed countries are fully in agreement in this view. Hence, it is imperative that a proper channel be set up between the developed and developing nations for the

effective transfer of technology, capital, resources and the financial provisions as well as provisions of suitable prices of such inputs affecting agricultural production like fertilizers, insecticides and pesticides, machinery and equipment, high yield seeds and breeding stock.

We know that solution of food problems in the developing countries rests with themselves, but the developed countries have to play an essential role to create favourable economic and trading conditions for the developing countries on world markets. I must add that the assistance must be used appropriately by the developing countries and also the assistance of the developed countries should not cause competence among the developing countries.

Mr. Chairman, in this respect you may wish to know about the activities in the development of agriculture in Turkey.

The development of the agricultural sector is regulated with the National Development Plans through the agricultural projects. The objectives set forth in the plans and annual programmes have provided guidelines for the agricultural development of Turkey. The main agricultural provision of the plans may be summarized as follows:

- Self sufficiency in food production,

- Attaining a balanced diet,

- A sufficiency of raw materials for the industrial sector,

- Increasing foreign exchange earnings,

- Raising the farm living standards.

In the light of these main objectives the agricultural sector has projects and programmes aiming at the sector's development. The development plans are almost invariably prepared for a fixed period. Five-year period plans are considered to be convenient for Turkey in which the formulation of an annual programmes system is adopted in order to activate the implementation of the plans.

Of course- the guidelines of the International Agricultural Adjustment which are very important and essential are considered by experts who prepare the plans. However, we consider that long-term programmes and work are needed in this field, and we know that many long-term problems remain unsolved although some progress has been made.

I wish to emphasize that all countries have to help each other and FAO continues to play an important role with the UN system for the development of agriculture.

A.M. BESKER (Egypt) (interpretation from Arabic): I would like to congratulate the FAO Secretariat for the excellence of the analysis which they have made in this document C 77/20. Progress in International Agricultural Adjustment has been very interesting indeed. This analysis was done against a background of major efforts in the field of scientific research and the result of a sincere xvish to achieve just results, in the evaluation of the degree to which our objectives have been fulfilled.

As far as the guideline No. 1 goes,in order to increase foodstuff production in the developing countries at an average of 4 percent per year,the document provides a fairly detailed review of this,which by way of conclusion says that the mean progress in agricultural production in most developing countries falls short of the population growth rate in those same countries. The consequence of this is that the phenomena of hunger and malnutrition are getting worse and are spreading out to affect hundreds of millions of people in the developing countries.

Turning to the other recommendations and aims, the document reviews a large number of indices and factors related to the guidelines and the objectives, although in a large number of cases the study brought out how difficult it was to attain proper statistics. An analysis of the number of indices 'and factors has not led to a complete understanding of the problems involved or let us say that it has not been possible to discern, what weight is to be attached to each of the factors in this analysis. The Egyptian delegation considers that lack of precision is extremely difficult to avoid in this type of review because of the complexity and the vast range of the problem we are dealing with. The fact is that this whole subject embraces almost every single aspect of agricultural development in developing countries. In order to analyze these various factors in an integrated and complete way a great effort is necessary, which effort needs to be based upon a very wide basis of information indeed.

Field studies are also necessary within each country. We believe that the pursuance of these efforts and the prolongation of these studies, because of the extreme usefulness that they have in the assistance that can be offered to the developing world, leads us to support every effort made by the

international organizations to finalize and promote all agricultural development programmes. The delegation of the Egyptian Republic agrees with many of the results that this study has led to, but would add that it is necessary to add technical and financial assistance offered by the developed countries and by the international organizations. We insist also upon the necessity of mobilizing sufficient financial resources to support that average agricultural development rate which the FAO has defined and to raise the standard of living of the inhabitants of the countries involved.

T. GURMU (Ethiopia): The Ethiopian delegation has the following comments to make on the document entitled "Progress of International Agricultural Adjustment". Our comments shall be of a global nature and will concentrate mainly on two guidelines which have been stated in the report. The first one is guideline No. 3, page 19. This guideline recommended that "National policies of developing countries should provide appropriate incentives for farmers to expand production and to promote the adaptation of structures within farming,both to permit optimum use of available and suitable technology, and to promote social equity and fuller integration of the rural population into the national economy.....". This is a very important guideline in our opinion. However, this recommended objective was assessed on whether governments have provided incentives to their farmers mainly in price support programmes or whether they had extended credit for the purchase of chemical fertilizers. In its evaluation the report has significantly excluded whether governments have undertaken fundamental institutional change, particularly regarding agrarian production relations. Farmers who toil under antiquated forms of social and economic relations will definitely have no incentive either to produce more or even to adapt to new techniques. Certain governments which have undertaken tests in agrarian relations have not even been mentioned as examples in the report.

The second comment is on guideline No. 9, page 60. This guideline recommended that "specific trade-oriented policy measures are needed on the part of both importing and exporting countries to ensure a substantial and steady increase in the export earnings of developing countries and the growth and diversification of their agricultural production."

The assessment of the recommended policy in the report proudly tells us that the value of agricultural exports from developing countries in 1974/76 averaged 72 percent above the three preceding years. This information does not give a true picture of the situation in that it does not tell us how this increment was achieved, whether it was through increased production or improved prices or both. It should be restated that the Third World countries through a process of unequal exchange on the world markets still contine to be plundered and pillaged. There cannot be self-sufficiency as long as situations are allowed to perpetuate in this manner.

The Ethiopian delegation expects from the report a quantitative and qualitative analysis on how the process of unequal exchange has acted as an obstacle to our objective which is self-sufficiency.

H. RIEM (Netherlands): My delegation, like many others, wants to thank the Secretariat for the document before us, and the Assistant Director-General for his introductory speech on the item. I think that the Secretariat has made the best of a really very difficult job that the Eighteenth Conference has given them. In judging the results we have to realize that in many cases exact criteria to measure progress are lacking, and above all that the strategy of International Agricultural Adjustment is about adjustments in the structure of agriculture and nutrition in the world and that, therefore, a period of two years is really too short to assess the progress made in achieving the agreed objectives and policies. For those reasons we regard the document under discussion as being an experiment for the purpose of gaining experience for the handling of issues at later Conferences. This means - and here I believe I follow the suggestions of a number of other delegations - that we should ask the Director-General to continue the analysis until four or six years have been covered.

We also think that, to allow for a full and detailed discussion by delegations from member countries, FAO committees, like the Committee on Agriculture and the CCP, should have the possibility of dealing with those parts of any analysis that fall within their competence before the subject comes back to the Conference at later sessions.

We have heard many useful observations from delegations on the analysis by the Secretariat of progress in regard to individual guidelines or groups of guidelines. The representative of the European Economic Community has reminded the Commission of action by the Community that we consider to be in line with the guidelines.

I for my part would like only to make a few observations with regard to the interpretation of the guidelines, in the sense that we should not try, at least at this stage, to elaborate in more detail the guidelines that were endorsed by the Conference two years ago. The strategy and the guidelines

cover and bring together subjects and issues on which already much more detailed texts have been approved by the Conference and accepted by most Member Governments. I am thinking not only of Conference resolutions but also, particularly, of the Universal Declaration on the Eradication of Hunger and Malnutrition and the Undertaking on World Food Security. We also have agreed principles of surplus disposal containing guidelines and procedures, and agreement was reached that they should be equally valid for food aid operations and we agreed some time ago on guiding principles on national agricultural price stabilization and support policies.

A second reason for not elaborating the guidelines at this stage is that all our countries are at present engaged in discussions, consultations and negotiations on many of the issues, in GATT and UNCTAD with regard to trade issues, in intergovernmental groups and United Nations conferences for individual commodities or groups of commodities, also with regard to trade and production and consumption policies for these products, for instance, in the Committee and the World Food Programme on food aid questions. The outcome of those discussions will show how our governments in practice interpret many of the guidelines for international agricultural adjustment that at present may seem to be much of a general nature, or perhaps in some cases not in complete harmony with each other.

Sra. G. SOTO CARRERO (Cuba): Con relación al documento referente a los Progresos en el reajuste agrí cola internacional, nuestra delegación hará solamente algunos comentarios y lo haremos analizando el documento en términos muy generales.

En primer lugar, en lo que se refiere a las tasas nacionales de crecimiento de la producción, el docu mento presentado por la Secretaría plantea que solamente el 30 ó 40 por ciento de los países en desa rrollo alcanzan o superan el 4 por ciento del incremento en la producción de alimentos y los que lo han logrado ha sido por condiciones climáticas favorables. En ese sentido consideramos que no podemos de jar al azar el desarrollo económico de los países. Entendemos que este crecimiento debe estar determi nado por políticas racionales encaminadas al incremento de la producción de alimentos.

Con relación a la orientación 2, nuestra delegación considera que según expresa el documento analizado, efectivamente la tasa de expansión de las tierras cultivables y de regadío han disminuido en los paí ses subdesarrollados a pesar de que, en términos generales, la expansión de la superficie cultivada y en regadíos se ha incrementado.

Nuestra delegación aboga por una ofensiva en ese sentido, ya que esa disminución que se observa en los países subdesarrollados no responde a incremento de la productividad.

Debido a la importancia que damos a este aspecto, en nuestro país se han incrementado considerablemente las áreas de cultivo aunque fundamentalmente nuestra política en ese sentido se ha encaminado al incre mento de la productividad por área cultivada.

En lo que se refiere a la necesidad de aplicar medidas especiales para incrementar los niveles de nu trición, en nuestro país se ha avanzado mucho desde 1959 y actualmente además de nuestros esfuerzos internos se está desarrollando en forma muy positiva un programa de ayuda alimentaria con la colabora ción del Programa Mundial de Alimentos mediante la distribución de leche descremada enriquecida con aceite.de mantequilla, con el objeto de mejorar los niveles de nutrición a los grupos más vulnerables.

Otros aspectos de los analizados en el documento C 77/20 y que consideramos de gran importancia, es el que se refiere al acceso a los mercados de los productos procedentes de la agricultura, sobre todo los que proceden de los países subdesarrollados.

En ese sentido otras delegaciones se han referido a la disparidad de productos básicos, así como a las fluctuaciones de la producción de los productos básicos agrícolas. A estos aspectos quisiéramos añadir la necesidad de que se tenga en cuenta la eliminación de las trabas arancelarias que limitan el libre acceso de los productos procedentes de los países subdesarrollados a otros mercados.

Se hace nuevamente necesario recalcar la necesidad de garantizar la estabilidad de los mercados, así como garantizar precios remunerativos para los productores, pero justos para los consumidores, tal y como se plantea en la orientación 8, como una condición indispensable para mejorar el comercio inter nacional. Insistimos, igualmente una vez más, en la necesidad de eliminar el intercambio desigual en este tipo de comercio.

Quisiéramos añadir, y siempre referido al documento presentado por la Secretaría, que resultan aleccio nadores los resultados de las compilaciones que aparecen en los cuadros 28, 29 y 30. Se demuestra en ellos que mientras los países en desarrollo cuentan con el 69 por ciento de la población mundial, sólo consumen el 59 por ciento de los alimentos. Se muestran además otras desproporciones muy desfavorables, que no deseamos comentar por estar las mismas a disposición de todos los delegados.

Nuestra delegación considera lógicas las cifras expuestas; sin embargo le ofrece dudas la proporción que refleja el indicador de tierras en regadío que aparece en el cuadro 28 y que otorga a los países en desarrollo una participación tan significativa del 78 por ciento y sólo el 22 por ciento a los países desarrollados. Quizá se deba a la forma de obtener la información primaria en los distintos países.

Nuestro país, señores delegados, ha encaminado sus pasos a la integración agrícola, a la explotación preferente de aquellos cultivos para los cuales somos beneficiados por las condiciones naturales. Ese objetivo ha encontrado eco favorable en las coordinaciones bilaterales que desarrollamos con países amigos que mantienen con nuestro país relaciones justas y totalmente respetuosas.

En el orden interno el Estado cubano participa profundamente en las orientaciones que debe brindar y brinda a la población para capacitarla en cuanto a la estructura más favorable de su dieta y además proporciona la posibilidad de que se consuman alimentos que en la etapa prerrevolucionaria eran prácti camente desconocidos por amplias masas de la población como, por ejemplo, resultaban ser los productos del mar, a pesar de que nuestro país es una isla. Ha sido preocupación también en nuestro país evitar la desigualdad de consumo entre las distintas capas de la población y entre la ciudad y el campo.

Por ultimo, deseamos manifestar con satisfacción que a pesar de los efectos del bloqueo económico a que ha sido sometido por años nuestro país, y que aun se mantiene, y a pesar del precio casi siempre desfa vorable del azúcar, nuestro principal producto, en el orden interno, decimos, que no se han incrementado desde hace muchos años los precios al consumidor de los productos alimenticios.Esto es posible, entre otros factores, por la unidad de nuestro pueblo al sistema económico-social y político que hemos adop tado y al sistema de planificación centralizada de nuestra economía.

Finalmente quisiéramos expresar que consideramos necesario analizar los motivos que han determinado que no se hayan cumplimentado todos los lincamientos referentes a la aplicación del Reajuste Agrícola Inter nacional, tal como han manifestado otras delegaciones.

A. DE BOUVERIE (Belgique): Monsieur le Président, comme on le sait, et comme nous l'avons rappele au cours des declarations générales, au problême du rééquilibrage des termes de l'échange qui avait retenu notre attention et celle d'organisations internationales comme la CNUCED et de la FAO, à cette notion qui faisait craindre une lente érosion des ressources nécessaires au développement, s'est subs tituée l'instabilité chronique des marchés de produits alimentaires de base.

On peut é i logue r longuement et savamment sur le fait de savoir si ce sont les forces du marché ou cer taines formes d'organisation des marchés internationaux, ou d'autres mesures et notamment les échanges, qui sont la meilleure formule pour sortir de nos difficultés. Quelles sont les limites d'une organi sation? Quelles sont les vertus des forces du marché? Est-ce la spéculation? Est-ce la prévoyance? En réalité, ce qui importe, c'est d'arriver à un consensus sur des mesures qui soient jugées accep -tables par tous sans constituer une charge excessive ou une contrainte inacceptable, qui rend compte des situations et des circonstances.

C'est dans cet esprit que les lignes d'orientation ont été conçues, c'est dans cet esprit qu'elles doivent être évaluées car c'est aussi dans cet esprit qu'elles pourront aboutir à l'objectif essentiel d'un développement économique équilibré.

Ceci veut dire que la manipulation des indicateurs économiques et sociaux et des statistiques de base que les évaluateurs ont à prendre en considération, doit se faire avec une grande prudence car ces indicateurs, ces statistiques et la méthodologie sont eux-mêmes une matière vivante et donc changeante. Monsieur le délégué de l'Inde nous a fait part de ses soucis à cet égard, appuyé en cela par nos col lègues de l'Equateur, du Bangladesh et de l'Egypte; mais ce n'est certainement pas un reproche vis-à.-vis du Secrétariat car il faut se rendre compte de l'extrême complexité du travail.

A propos de statistiques agricoles, nous voudrions cependant signaler à titre documentaire l'aide à la vulgarisation de la formation statistique en agriculture fournie par la Belgique à l'intervention de la FAO en faveur de certains pays en voie de développement. A cet égard, nous pouvons souscrire à ce qui est dit au paragraphe 7 de l'introduction du document C 77/20 qui est un bon document pour lequel nous remercions le Secrétariat, mais qui doit lui-même être évalué avec toute la relativité que comporte ce paragraphe 7.

En son chapitre 1, la vue d'ensemble donne un aperçu intéressant des réalisations constructives mais aussi des faiblesses. Ainsi, le paragraphe 16 est une bonne indication générale de la tendance, mais comme nous l'a rappelé le délégué de la Hongrie, cette tendance ne pourra se poursuivre que si les infrastructures connexes de la production suivent le mouvement, ce qui naturellement dépasse le cadre de la production agricole elle-même et concerne non seulement les gouvernements, mais les nouveaux organismes destinés à couvrir l'objectif du développement agricole.

S'agissant des commentaires relatifs aux lignes d'orientation 2 et 3, plusieurs choses nous paraissent devoir être dites. D'abord, que quelles que soient les politiques et qu'il s'agisse de pays développés ou en développement, on ne fait pas de l'agriculture sur cesure ; il est donc fatal, mais souvent heureux que des marges de sécurité puissent compenser les "gaps". Ensuite que si le travail agricole n'est pas encouragé au même titre que l'investissement, l'amélioration des flux financiers risque de rester en partie improductive. Enfin, que l'emploi rationnel des ressources est non seulement une notion ambiguë, mais aussi subjective et que l'interdépendance croissante entraîne aussi des nouvelles interactions qui ne sont pas toujours celles que l'on a souhaitées.

C'est dans ce sens que nous pouvons interpréter les paragraphes 86 et 87 comme un souhait renouvelé de voir se réaliser les mêmes actions de la part des pays développés si les mêmes conditions sont ré unies, et c'est dans ce sens aussi que s'exercent les efforts d'un groupe de pays pour lequel la dé claration universelle sur l'élimination de la malnutrition reste un objectif sérieux qui demande des moyens de régularisation sérieux.

En ce qui concerne la ligne d'orientation 4, nous avons déjà, à propos des pertes des récoltes, exprimé notre avis, il n'a pas changé.

Quant au détournement d'aliments de leur destination normale, nous estimons, en ce qui nous concerne, qu'ilne faut pas pousser au paradoxe. En effet, il y a des hiérarchies de prix et des hiérarchies d'utilisation qui ne se concoivent guère en période de pénurie mais qui peuvent être économiquement et raisonnablement réalisables en situation excédentaire sans rien bouleverser dans nos actions d'aide alimentaire par exemple.

L'évaluation des lignes 7 et 8 doit se poser en résultante d'une évolution que le Secrétariat lui-même entrevoit sur le long terme, suite aux efforts qui seront entrepris en commun vers une meilleure stabilité. Nous en avons parlé en sessionplénière, nous n'y reviendrons pas.Il en va de même pour les recettes d'exportation et les mesures de diversification de la ligne 9.

S'agissant enfin du chapitre 4 et des conclusions en forme de questions, nous constatons que de part et d'autre, des efforts considérables ont été faits avec des moyens et des fortunes diverses, que l'aide et la coopération doivent se poursuivre dans une conception intégrée du développement économique, struc turel et social, développement dont la définition et les responsabilités politiques, comme nous l'a rappelé la délégation de la République populaire de Chine ce matin, incombe naturellement aux pays en voie de développement concernés, c'est-à-dire dans le respect dessouverainetés nationales.

Certes, une évolution trop rapide n'est plus une évolution et risque de conduire à d'autres déséqui libres.Il nous faut donc, nous tous et les évaluateurs, rester prudents dans nos appréciations et nous garder de conclusions hâtives et malencontreuses dans ce domaine des réajustements qui, rappelons le, est une oeuvre de longue haleine.

A. PAPASSARANTOPOULOS (Greece):First of all, on behalf of my delegation I would like to congratulate the Director-General and the Secretariat on the comprehensive analysis of progress achieved in the agreed objectives and policies of international agricultural adjustment presented in the very good document C 77/20.

We recognize that agricultural adjustment is a dynamic long-term process that also mainly depends on many complex issues which have to be weighed before formulating national agricultural policies.Its assessment therefore at world level is not an easy task. Nevertheless, document C 77/20 provides a first assessment of world agricultural progress in respect of the guidelines for FAO strategy of agricultural adjustment according to the available data and information.

We think that monitoring and the assessment of performance in respect of all guidelines must be continued and enlarged in the future in order to provide more solid and detailed information, thus assisting Member Nations, FAO and other agencies to adopt more effective policy measures or to orientate their policies towards achieving these guidelines. We note with great satisfaction that progress has been achieved during the last few years in world agricultural development in respect of many of the guidelines of FAO's strategy of international agricultural adjustment, which it is necessary to accelerate.

In spite of the recent progress in increasing food output, efforts should be continued to achieve the 4 percent global rate of growth in food output, which is thought appropriate for developing countries as a whole.

Despite the lack of up-to-date data reporting the magnitude of the total flow of financial and other resources into agricultural production in developing countries, we note with satisfaction the intention of governments to mobilize increased flows of financial resources for investment in agriculture, and

to create more effective institutional structures for providing credit facilities to farmers. We hope that this trend will be accelerated in future towards improving the conditions and prospects for small farmers.FAO's responsibilities in this field are, in our view, of great importance.It has to assist developing countries in rational planning and the carrying-out of public works and other development programmes.It has to secure more financial resources on more favourable terms. It has to identify the incentives to small farmers, which are needed in all countries, or at least those for which FAO's projects are being carried out.

In this connection we think that FAO should think about participating directly or indirectly in financing incentives or subsidizing small farmers for a certain number of activities in respect of its top priority programmes, such as the activities on the reduction of food losses in countries or in certain areas that need more such support.

In our view, by supporting small farmers, food self-sufficency can be substantially increased, resulting in the improvement of food consumption patterns and nutritional levels in developing countries.In this connection we welcome the progress that has been made.

In conclusion, we would like to repeat that the analysis of progress in the achievement of the agreed objectives and policies of international agricultural adjustment should be continued in the future, so that it will be possible to assess the changes in existing patterns of world agricultural production, trade and consumption, which are an essential feature of the establishment of a new international economic order.

K. ANDERSEN (Denmark):First, as many other delegates have done, I would like to thank the Secretariat for the substantial report prepared for the item. We realize that the subject is a difficult one to deal with both from a technical and from a political point of view.In spite of these difficulties, we find that the Secretariat has been able to produce a useful report in which a number of important issues are analyzed and clarified, and in which also a number of important outstanding questions are singled out for consideration and discussion.

In paragraph 62 the report states that guideline 3 is probably the most important of the guidelines which codify recommended national policy approaches. We in the Danish delegation agree that incentives to farmers to expand production, to promote social equity and fuller integration of the rural population into the national economy, are the very core of the matter, because they concern the environment of the rural population to implement in a practical way, and to a large degree a matter for decision by national governments.

We would like to stress the importance of reasonable price incentives to farmers with due regard to consumer interests, because without remunerative prices to farmers there would be no increase in production.

Guidelines 4 and 5, which both deal with nutritional aspects, are important elements. We support the role of FAO in formulating and implementing integrated nutritional policies and we invite FAO to work closely with the World Food Programme in preparing assistance to vulnerable groups.

On the question of guidelines 7, 8 and 9, we would like to refer to the STABEX Scheme under the Lomé Convention, mentioned in paragraph 20, which we believe could serve as a model for other countries as well.

We agree, as stated in paragraph 163, that changes in existing patterns of world agricultural production, trade and consumption, come about slowly. Perhaps the essential point here is the political will to bring about such necessary changes and also to do this sufficiently expeditiously.There can be no doubt that the will to realize adjustments is there.The report brings full evidence of this.

The message of the report seems to be that things should move fast if we are to succeed in eradicating hunger and malnutrition within a reasonable span of time.The report does not give any clear indication as to how this should be achieved but in section 4 raises instead a number of issues for consideration and discussion.

We would underline the importance of giving the highest preference to agriculture in food deficit develop ing countries and this context highlights the importance of the organized transfer of capital for invest ment in the agricultural sector.

We believe it is essential to world food security that the production potential in developed countries is maintained. At the same time, the cost of this production and its allocation should be discussed.

On the question of trade, we would repeat our support for international commodity agreements.

The final paragraph in the report deals with measures to eradicate hunger and malnutrition. The answer to the four questions raised is neither 'yes' nor 'no' , We would have to combine a complex number of measures to solve these problems, and each member of this Organization has a contribution to make.

Finally, I should like to support further the idea, which my colleague from Sweden made earlier today on behalf of Finland, Denmark and Sweden, that the statistical material on agricultural production might, with advantage, be divided into two separate groups, one group covering the production for self-support and direct consumption, and the other group covering production set aside for sale. If this can be incorporated in the questionnaire for the next production yearbook I believe that the FAO statistics will be of more use in future analysis. Speaking for the Danish delegation, we would appreciate a reaction to this idea from the Secretariat.

H.S. BAR-SHAI (Israel):I should like to refer to some general aspects of the subject under discussion. I feel this subject of international adjustment is a most important subject because any future improve ments in the field of food supply depends to a large degree on removal of impediments to movement over the world, and so leads towards a useful division of labour on a world scale. But the obstacles are very great and I sometimes have the impression that it is rather like the weather, about which every body speaks but does nothing to change; we tend to receive it as it is.Even what may seem a simple and objective issue like uniting the units of measurement of agricultural products, instead of having pounds and ounces, has not been achieved and there is still a very long way to go even after so many years of international activities. Imagine, then, how long it would take to integrate nutritional policies of various states to avoid wastage of food resources, as mentioned in one of the guidelines here.

Leaving aside those things, the international division of labour in the field of food supply is very necessary, and we should strive to that end. In Israel, we have tried to apply it to our local agricul tural policies. We do not aim at growing all of our foodrequirements, but at gaining some sort of self-sufficiency by growing what can be relatively profitably grown within the country, while importing products which are unsuited to our country for climatic reasons, or because of shortage of sufficient resources like land water, etc. Today we have reached a situation where only about 3 percent of the cost of our food requirements is not covered by local production of local exports.

I feel that further progress and possibilities for the various nations depend on removing at least some of the many obstacles which hinder international trade and prevent specialization by countries which are best suited to produce specific products. In this respect, I welcome the report made by my colleague from the Federal Republic of Germany and hope that the present GATT and GSP round will produce some concrete progress towards this end of utilization of world trade in agricultural products.

As for Israel, within the recently declared new economic policy my government has decided upon certain measures designed to remove obstacles from internal and international trade. Measures are now being devised towards liberalizing the present rather rigid arrangement of quotas of growth in food producing, while ensuring at the same time a income for the farmers. We also intend to liberalize the present system of import licensing after having considerably eased our foreign exchange regulations.

May I repeat the opinion that more commodity agreements should be made so as to assure a fair income to producers along with a fair price to consumers, and eliminate the severe fluctuations in prices. This has been mentioned before, but it could bring about international cooperation in a much required field.

Some of the impediments to international trade in food and agricultural products are outside the field or the factory or outside the responsibility of the grower. To mention but one: ensuring proper transportation from the field to the consumer, whether the consumer is in a nearby village or on the other side of the globe. We try to solve it by a radical change in the marketing system where the production exports board for agricultural products in Israel have established a special air cargo company which transports agricultural produce to centres in Europe, and from there it goes to the consumption centres. Thus, we have speeded the process of delivery and greatly reduced the expenses involved in costs of transportation.

The delegate of Iran mentioned earlier the problem of big price differences between what the farmer gets and what the consumer pays.Some of the differences are undoubtedly due to actual expenses of handling, transporting or processing of the produce, but there is still a high margin of what can be called profiteering in between.I should like to call upon the FAO to devise a campaign designed to reduce considerably this difference, again to benefit the consumer and grower alike, and thereafter all the partners in the process of food growing.

M.R. LEAR (New Zealand): New Zealand would like to commend the Secretariat on an excellent docu ment, especially given the conceptual complexity and ambiguity of many of the guidelines and the difficulty of obtaining data to measure progress towards the achievement of many of the guide lines .

We wish to restrict our comments at this stage to Guideline 3, since a number of speakers before have adequately covered the other five guidelines we are discussing at the moment.In particular, we wish to focus our remarks on the second part of Guideline 3 on the rational use of resources by developed countries.

I think it will be obvious to everyone, as the document before us makes clear in paragraph 83, that New Zealand is not considered to be in the ranks of the developed countries in this instance as we do not intervene significantly in our domestic agricultural market through price support measures.

In discussing this guideline, I would first like to take issue with the Secretariat on a rather minor matter. In paragraph 76, the Secretariat argues that the phrase "the most rational use of resources'' is very ambiguous because it says it is not clear from whose point of view rational use of resources should be examined;that it is not clear whether it should be from the domestic point of view or the international point of view. We would submit that it is in fact very clear that there is no ambiguity. We are, after all, talking about international agricultural adjustment not domestic agricultural adjustment.It is clear to us, therefore, that it is from the perspec tive of the international community that we should examine whether developed countries are mak ing rational use of their resources; in particular, whether given the interdependence of the world agricultural scene, certain of their domestic policies are encouraging or discouraging agricultural production in the rest of the world.

In our view, the analysis in this paper is very sound indeed on the effects of certain policies and, in particular, price support policies pursued by a number of developing countries.First, the paper provides a detailed analysis of the extent of these price support policies which are particularly high in the case of milk and milk products and rice, and the fact that price support levels, after decreasing for a number of years, are now increasing for many commodities. As to the effect of these price support policies, the paper makes it clear that these encourage and per petuate problems of over-supply both by encouraging production and discouraging consumption. Fur ther, since price support policies are most likely to be introduced and increased during periods of over-supply, they perpetuate the problem. As the document goes on to note, over-supply has significant international effects as well as domestic effects.They usually lead to market restrictions on imports being imposed, restrictions on access to tariff and non-tariff barriers to protect the system, and restrictions because demand is fully met by domestic production.

Further, as the paper says, over-supply usually depresses international market prices. Again, both as a consequence of the compression or construction of the overall size of the market and because surpluses are often exported at heavily subsidized prices, this penalizes efficient pro cedures and robs many developing countries of the incentive to increase their output.

To repeat, we agree with and endorse the analysis in this paper on the negative effect of price support policies in some developed countries. However, we are left with the impression that these policies are justified or endorsed to some extent by the Secretariat because the paper says these policies assist with the attainment of world food security by stimulating surplus agricultural production in developed countries.I note that some developed country delegates have rationalized their policies on these grounds, that is, that it contributes to the attainment of world food security. We find it difficult to accept this,In our view, world food securityv comprises two elements:first, the establishment of an internationally coordinated system of cereal stocks, especially reserve stocks to be available to mitigate the effect of unexpected crop shortfalls.The second element on world food security is the more important one, that is the encouragement and stimulus of increased agricultural production by the developing countries to enable them to attain increased self-sufficiency. Yet, as we have seen, the price support poli cies of some developed countries dampen the incentive for developing countries to increase their food production by restricting market access and by depressing international prices.

This makes it difficult for the governments in developing countries to provide adequate incentives to their producers.In our view, in other words, there is too much emphasis in this paper on the benefits of price support policies of some developed countries in helping to maintain the world food security and too little emphasis on the negative effects on world food security and in parti cular on their impact on incentives to developing countries to improve their agricultural pro duction.

We would of course accept the argument in paragraph 85 that a sudden overnight reduction in these price support policies can harm the immediate world food security situation especially in cereals, but we are sure the developing countries would prefer to rely on their own increased production to attain food security, rather than on the surpluses produced in developed countries as a result of those countries' domestic policies. I would like to conclude here and to speak later on guideline 7 onwards.

J.ROWINSKI (Pologne): Je vous prie de m' excuser si je ne suis pas exactement les lignes de la dis cussion proposées par le Président ce matin. Cela est assez difficile pour moi d'autant plus que l'intervention a été préparée par mon collègue actuellement absent je me demande pourquoi...

Je voudrais tout d'abord, au nom de la délégation polonaise, exprimer nos remerciements au Secrétariat pour la parfaite préparation du document intitulé "Progrès de l'ajustement agricole international". Il nous faut apprécier le fait, très important,que pour la première fois la FAO a préparé un document contenant l'analyse large et approfondie de ce problème.

D'après nous, les lignes d'orientation votées et approuvées il y a deux ans, se trouvent maintenant à la phase préalable de leur réalisation.Cela dépend soit de la prise en considération, dans la me sure du possible, des différents programmes de développement de l'agriculture préparés dans divers pays, soit de leur influence sur le déroulement des discussions menées dans les divers forums internationaux.

La délégation polonaise désirerait exprimer son opinion sur quelques problèmes ayant trait au sujet en question.

Nous sommes convaincus que beaucoup de possibilités existantes dans l'ensemble des organisations inter nationales, ne sont pas encore entièrement mises en valeur, ce qui permettrait au développement et à l'ajustement agricoles de faire face aux besoins toujours croissants;ce fait est pariculièrement im portant, surtout pour les pays en voie de développement ayant un taux d' accroissement de la production des produits agricoles encore très bas, par tête d'habitant.

La délégation polonaise est d'avis que l'augmentation relativement rapide de la production de produits agricoles dans toutes les régions du monde (et en particulier dans les pays en développement) constitue un fait d'une importance de premier ordre.

La réalisation d'un tel programme exige toutefois, à notre avis, des changements essentiels sur le plan social et institutionnel de manière à mobiliser et débloquer toutes les ressources internes des pays intéressés ainsi que créer une volonté commune de toute la population pour la réalisation des objectifs planifiés.

Nous sommes aussi de l'opinion que la planification économique représente un meilleur système pour le développement de coopération économique internationale.On peut noter une corrélation directe entre la détente politique et le processus de désarmement d'une part, et la coopération économique de l'autre. La réduction des dépenses de l'armement pourrait servir de source valable pour le financement du Programme de l'ajustement agricole international et de l'augmentation rapide de la production des pro duits alimentaires pour toute l'humanité.

En seconde partie, je traiterai des fluctuations non fondées des prix des produits agricoles sur les marchés mondiaux. Fluctuations qui nous préoccupent beaucoup. L'incertitude et le risque qui en résultent se font fortement sentir non seulement dans plusieurs pays en voie de développement mais au si dans les pays d'économie planifiée, dont la Pologne.Voilà pourquoi notre pays participe activement aux efforts accomplis sur les divers forums internationaux pour obtenir une stabilisation relative des prix et des importations agricoles; ces produits seraient choisis à un niveau économiquement justifié.

Il est bien évident que lorsque les liaisons économiques sur le plan international deviennent de plusen plus étroites et les interdépendances économiques toujours plus nombreuses, aucune perturbation au niveau des marchés mondiaux ne peut nous laisser indifférents.

D'autre part nous sommes fortement préoccupés par les tendances protectionnistes dans le commerce ex térieur et le secteur des produits agricoles y compris.La délégation polonaise est d'avis que le commerce international, y compris les échanges de produits agricoles, doit être libéré de toute discri mination et de toute restriction.Notre gouvernement présente invariablement des demandes dans ce sens, La Pologne développe de manière toujours plus importante l'importation directe de plusieurs marchandises agricoles de pays en voie de développement, sans intermédiaire superflu. Ceci est d'un avantage évi dent pour les partenaires des deux parties. Nous cherchons à traiter avec pragmatisme toutes les ini tiatives commerciales et toutes les formes d'organisation pouvant accélérer un tel processus.

Je voudrais enfin souligner que la délégation polonaise est convaincue que les travaux que nous venons d'analyser ont favorisé les principes formulés dans les lignes d'orientation.Il est évident que du rant les périodes de pénurie de certains produits agricoles sur les marchés internationaux, tous les pays désirent accélérer le processus de développement et d'ajustement de leur agriculture.C'est une tendance conforme à la tâche acceptée par la Communauté internationale.Au contraire durant les pé-riodes d'exédents relatifs de certains produits, la convergence des efforts peut être moins universelle.

Permettez-moi par conséquent d'exprimer l'opinion que la réalisation complète des lignes d'orientation ne sera pas un processus rapide et facile.

R. ATKINSON (Canada) : We have reviewed with great interest the report before us and wish to offer a few comments in respect of the general nature of the report. The current status of international agricultural adjustments suggests that the topic has not achieved the level of significance envisaged for it. In the first place, there is now a new thrust within the FAO away from such basic studies, and in the second place several international agricultural bodies and programmes cover much of the area with which IAA was concerned. A few years ago there was hope that IAA would have provided the framework within which a transformation of world agriculture through cooperative action on production consumption and trade could have taken place. However, new institutions such as the World Food Council and new programmes such as that concerned with world food security have superseded IAA per se.

On the trade side, Canada and most of FAO member countries place a primary responsibility for international agreements and adjustment on UNCTAD, GATT and the International Wheat Council. Therefore while considerable progress has been made towards establishing a framework for achieving the objectives of IAA, the specific strategy originally proposed has ceased to be a prime mover.

Canada has always recognized the importance of agricultural adjustment at the national and international levels. However the primary emphasis for each country must be on its primary domestic policies. Our farmers are constantly adjusting to the market outlets, both domestic and international markets and trade. National policies bearing on agriculture need to be harmonized to a greater degree, and special count must be taken of problems faced by developing countries. The history of our efforts to date shows how difficult progress is.

In terms of Canadian production, we have pointed out that any proposal to impose restraints in developed countries in order to facilitate increased imports from developing countries would be difficult to impose politically, but might well involve undesirable controls on production and trade. As a major grain producing country, Canadian basic preoccupation should be to expedite her production potential to the fullest on the grounds that we have certain efficiencies over many countries in this respect. On the question of monitoring per se Canada agrees that FAO should continue to perform this function and that no new body need be established and the biennial FAO Conference is an appropriate forum for assessing progress. Canada agrees with the position at the last Conference that monitoring should be based on a limited number of key indicators.

This leads us to the question of how to proceed for the future. There are obvious problems very different for developing countries as for developed countries, different bases of adjustment, and the next study should concentrate on the more problematic areas, the LDCs, to see where bottlenecks are and what requires attention.

V. STIPETIC (Yugoslavia): In some sense the document C 77/20 is closely related to the document State of Food and Agriculture 1977 which we discussed yesterday. In fact we have discussed the same subject on both days. It is not a coincidence that so many participants in today's discussion referred to their former contributions to the Conference, the difference being mainly that so far in C 77/2, we have got an excellent informative source of facts of a basically descriptive nature. Today's paper on "Progress of International Agricultural Adjustment" is a much more analytical one based on macro-economic variables with many interesting conclusions. We in the Yugoslavian delegation are grateful to the Secretariat for such an analytical framework which gives us so many additional insights on the contemporary agricultural development.

We would like firstly to subscribe ourselves to the overall view of assessments of the progress in international agricultural adjustments as they were given in paragraphs 10 to 30, especially the following ones which I would like to underline.

In paragraph 10 it says that "... progress has however fallen short of that which had been hoped for earlier."

In paragraph 19 it says "... with little evidence that the international community takes seriously the responsibility it assumed with the adoption of the Universal Declaration on the Eradication of Hunger and Malnutrition..."

Paragraph 23 says that the 1976 level of commitments in official assistance to agriculture in developing countries fell even further short of the revised target of US$ 8.3 billion adopted by the World Food Council in June 1977. As of July 1977 it is still hoped that IFAD and become operational before the end of the year."

Finally in paragraph 28 there is a statement which probably gives us all much concern. It says that "basic policies and programmes, like basic trends, are not easily changed. Hopes for quick policy changes and early results were probably pitched too high in 1974. What has happened since reflects the combination of such diverse influences as natural inertia of established ways of thinking and acting . in the face of the prospect of innovations, opposition from those benefiting from or feeling safeguarded by current policies, and complexities of the issues involved. Beneath the surface of intergovernmental consensus there are deep-seated elements of contradictions as well as genuine attempts on the part of some sections in all countries to move to policies of more general benefit."

Those are general statements which I would like to underline and now I would like to make the following comments on some sections. We regard the problem of average national yields as has been dealt with in paragraphs 43 and 44 as probably not covered enough.

By one analysis which has been made in my own country we have found that in the past 25 years for maize the developed world was able to obtain annual increments in yield of 100-150 kilograms per year " France, USA and so on. But nearly all developing countries have been able to obtain an annual increase in yield of only 10 to 30 kilograms per year in the past 25 years and these things have not changed in recent years. That means that the gap in yields is growing wider and wider. Further if we are calculating the rates of productivity in the developed countries and developing ones, and that is based on the facts and figures given in Tables 1 and 6, we will find that the annual rate of growth of labour productivity in agriculture of developed countries used to be 5.3 percent annually and in the developing economies only 1.6 percent annually, which is an added factor to the concern which we feel.

The third question is the question of guideline No. 6. In paragraph 112 it says "that the self-sufficiency trends are quite different in the two groups of countries as is.apparent from Chart 7. Particularly in the seventies the self-sufficiency trend has fallen quite markedly for the oil-resource countries. On the other hand there has been only the slightest of downward drifts in the degree of self-sufficiency of all other developing market economies taken as a group..."

In fact, the figures given in Table 16 show us that Africa has got a self-sufficiency ratio,of 103 percent at the beginning of the sixties, 99 percent at the beginning of the seventies and only 96 percent in the middle of the seventies. Latin America had a self-sufficiency ratio at the beginning of the sixties of 104 percent. Now it has gone down to 103 percent. There is for the developing market economies of developing countries a slight downward tendency but this is exactly what I think calls for concern and I would like to underline this fact.

As far as the terms of agricultural trade are concerned those facts are new to me and I would like to ask the Secretariat if it is possible to provide us with the original document from which those conclusions have been drawn since I have not seen those facts and figures analysed and as you know the methods of analysis might influence the results. Further, we ought to mention that worsening terms of trade in the past three years have not had a beneficial influence on the increase of self-sufficiency in many developing regions of the world. Further, the facts about the drop in international assistance to the developing countries as regards agriculture which we discussed yesterday have been given in full detail in the discussion of guideline 10, and I am grateful to the Secretariat.

Finally, I would like to draw your attention to Table 13 on page 78. You might see in this table that the position of the developing countries as a whole has deteriorated quite considerably in the pastten years. Let me start with labour productivity in agriculture which used to be in the middle of the 1960's, in the developed countries of the world, nine times higher than in the developing world. In the middle of the 1970's it Is twelve times higher. As far as average crop yields of food and crops, the average yield in the developed countries was 85 percent higher than in developing countries in the middle of the 1960's. Now, it is 210 percent higher, in the middle of the 1970's, so again we see the widening gap between developed and developing countries. As far as per caput food production is concerned, in the middle of the 1960's the developed countries of the world were able to produce three times as much as in developing countries. Now, the ratio is 3.4 to 1. Again a worsening situation for the developing countries. The same applies to a lesser degree to the per caput food consumption in developing countries which is mainly due to the increased imports of food in developing countries. I believe that all those figures give concern to all of us attending this Conference. For that reason I would like those facts and figures to be much more integrated into the future work of FAO and probably they should be given a due place in future Conferences.

A. CHULLIKAL (Holy See): in the absence of the head of my delegation I have been asked to intervene. The delegation of the Holy See appreciates the fact that recent increases in agricultural production have given rise to moderate optimism. However, the precarious balance existing in many situations and especially the most important problem of distribution must be re-emphasized.

Pope Paul VI said in his speech to the audience last Friday:

"We cannot fail to call your attention once more to the problems of the distribution of food products and of the balance to be achieved between all the factors governing trade in those products."

He also mentioned the problem of redistribution of incomes within poorer sections of communities. He emphasized that the international trade system, for which most of the developing countries are often not responsible, is the cause of their dependence on developed economies.

To meet the requirements of an equitable distribution, we may have to place the accent on both the dignity incumbent on self-reliance and the moral obligation of solidarity towards the least developed countries and the most disfavoured peoples in every socio-economic situation.

One essential aspect of world development is this interdependent collaboration. In order to achieve that interdependence we have to decide on revisions or practices that necessarily respect justice in the new situation.

We also wish to emphasize the evil effects of speculation and exploitation of basic human needs. Specualtion though an economic factor, must be rethought in the light of the exigencies of development which has underpinnings of world justice in trade adjustment agreements.

This delegation wishes to stress the fact that the right to food, especially for the most disfavoured sections of peoples in every society, is a basic human right which must be respected by nations and all types of social and political institutions. In the light of this consideration, we call your attention to the moral obligation of those who have plenty to be constantly aware of their responsibility towards the poorest people.

Any agricultural adjustment demands, then, that priority be given to the rural peoples of the world, applying technology and services which can be integrated into their human situation.

The sensitivity towards the human person in all forms of development has been constantly emphasized by Pope Paul VI in all his messages concerning world development.

EL PRESIDENTE:Señores, esta mañana tomamos una decisión en relación con el procedimiento que se iba a seguir para analizar este tema de nuestra Agenda;la decisión que se tomó consi°tía en hacer comenta rios generales y luego sobre los dos primeros grupos de orientaciones.Esta decisión fue tomada con flexibilidad atendiendo a la posibilidad de que algunas delegaciones tuvieran ya preparadas sus inter venciones sin prever esta decisión que hacíamos al analizar este tema.

A raíz, precisamente, de esta flexibilidad, algunas delegaciones se concentraron en los comentarios generales y en los dos primeros grupos de orientaciones, mientras que otras tomaron el tema, más genéri camente y otras hicieron referencia a algunas de las orientaciones que estaban en el grupo restante.

Por este motivo, creo que debemos ahora dar la oportunidad a aquellas delegaciones que se concentraron en los dos primeros grupos de orientaciones para que puedan referirse a los otros dos grupos, es decir, al grupo C:"El comercio de productos agrícolas y los requisitos de la producción'' y luego al grupo D: "Asistencia internacional a los países en desarrollo en el sector agrícola''.

Hacemos esto así porque en algunas intervenciones observamos que algunos delegados se reservaron el dere cho de intervenir nuevamente en el debate.

F. CORTESI (Observer for the International Catholic Rural Association):I would like to make some comments on international agricultural adjustment on behalf of the Organizations that you have just mentioned, Mr. Chairman. All these Organizations have direct working contacts with rural people and farmers and besides being interested in the overall targets of the agricultural adjustment they have a special interest in Guideline 3.This envisages social equity and the fuller integration of the rural people into the national economy and appropriate incentives for farmers. All these Organizations are particularly concerned with small farmers.

We wish to refer briefly to this point, considering the snail farmer as a worker and a manager who is productive from the economic point of view and capable of taking initiatives within his farm and in society. Unfortunately, too many small farmers have to face too extremely difficult living and working conditions to be really able to achieve self-reliance and initiative. The solutions to these problems are neither easy nor simple. We would like only to mention some, suggested by our particular experience.

(a) Stabilization of management factors which, besides concerning the market prices of inputs and products, should include various services such as credit, technical assistance, forms of insurance, etc

(b) The reduction in the number and weight of the farmers' ordinary and extraordinary activities especially through the encouragement of the formation of cooperatives and labour unions of different orders and types.

(c) Respect for the local situation. The problem of rurally-oriented experts dealt with by this Conference seems vital to us in this context.

(d) The improvement of the farmer's social status, dignity and autonomy through participation in the definition of the goals and their development and ways of achieving them.

(e) Adequate representation at various levels of the social structure through the medium of associations encouraged by governments with an active dialogue and adequate legislative provisions. These provisions should also aim at a revaluation of women's and young persons' roles in agriculture and their rapid insertion into administrative and cooperative activities.

At the national and international level the concept should be better studied and emphasized that the values which the rural world conserves and renews are precious elements for a society which is diversified and evolving.The role of the non-governmental organization those NGOs which are present in the rural environment for various reason should be studied more in depth. Their collaboration with governments and governmental organizations should be developed. Our Organization is certainly ready and willing to offer this collaboration.

I shall now consider the FAO Programme for the solution of these problems.We would like to express our positive appreciation particularly for the following points:the efforts made for increasing the flow of aid to countries in difficulty and an acceleration of aid procedure; the decentralization of the practical direction of aid and development activities; the appointment of FAO national representatives.

We feel that the intention to direct information and professional training towards rural persons is more important now than ever before.

We also judge as positive the programme and the relevant capital for the reduction of losses in products.

The regional approach to development now being tried seems useful to us also for the better drafting of development projects.

We would also like to express our appreciation for the planned World Conference on Agrarian Reform and Rural Development. Most of our Organizations are involved in rural development and even in land reform operations in their own agricultural areas.These Organizations are ready to follow and support in various ways these FAO initiatives and other activities about which we have just expressed our appreciation.

EL PRESIDENTE:Señores, en consecuencia de lo que dije antes, ofrezco la palabra para hacer comentarios sobre los Grupos C y D de las orientaciones contenidas en el documento 77/20.El Grupo C se refiere al comercio de productos agrícolas y los requisitos de la producción, y el Grupo D a asistencia internacio nal a los países en desarrollo en el sector agrícola.

R. SARÁN (India) : On Guideline number 7, very useful comments have been made in the document.For example, it has been stated that the rate ofincrease in agricultural exports from developing countries in recent years has fallen short of the exports from the developed countries since around 1970. Again, it is stated that the index of ratio of agricultural exports of developing countries to their imports has declined sharply in recent years. These are some of the features which emphasize the need for remedial measures, in the form or removal of tariff and non-tariff barriers and the provision of stable prices.

Guideline number 8 also highlights the lack of progress on the issues involved.For example, it states that the International Undertaking on World Food Security has remained limited to statements of general objectives and guidelines. We are aware that the policy of the international coordination of national stocks for cereals, for grains and for wheat have yet to be finalized. We would hope that this policy will be finalized during negotiations on the International Wheat Agreement and in other forums.

It is also stated that a decision has been taken to establish a common fund to finance operations under the UNCTAD integrated Programme for Commodities, with the object of improving price stability for agricultural commodities, but problems of implementation of this decision still remain to be settled. There is a reference also to terms of trade.

It would be my suggestion that terms of trade for agricultural commodities should be studied product by product and also separately for the MSA countries and other low income countries.There is also a reference to terms of trade for agricultural products and fertilizer prices.I have the impression that with the recent rise in prices of fertilizers - I am not certain of the figure but I feel it is 25 to 30 percent - the terms of trade of agricultural products will have become more unfavourable.

These are the issues which need to be looked into, and measures need to be taken to ensure that the terms of trade remain steady and favourable to the developing countries.One way of doing this wouldbe to ensure stability in the prices of fertilizers.

Guideline 9 refers to policy measures designed to ensure a substantial and steady increase in the export earnings of developing countries, as well as the growth and diversification of their agricultural production. My suggestion here is that perhaps the scope of this guideline could be widened to cover the policy measures relating to export substitution in addition to export promotion.

Regarding Guideline 10, I am quite satisfied with the treatment of it in the document.It is one of the most important subjects which relates to the transfer of resources and technology required for expansion of the production of food and other agricultural commodities. We now have a relative idea of the actual development assistance commitments and the estimate of assistance required for assuring a 4 percent growth.There is a wide gap. We have also referred to this matter in SOFA.

Regarding Guideline 11, which refers to food aid, it is stated that adequate quantities of other food commodities should also be provided.As we know, the World Food Conference recommended minimum food aid target of 10 million tons of cereals a year.No targets are laid down with regard to other commodities. Therefore, as the guideline is now framed, one can only examine the improvement, if any, in food aid in respect of food commodities other than cereals. Perhaps this guideline could also be broadened to include targets in respect of other food commodities.

I have dealt with the guidelines, but I find that there is a very interesting section in this document, section 3 on page 73 onwards, which deals with changes in international agricultural relationships. Two tables bring out the results of the analyses made.These tables show an improvement in recent years in the relative position of the developing countries vis-à-vis the developed countries in regard to world food consumption, world GDP, world fertilizer consumption and world fertilizer production.On the other hand, these tables show a deterioration in the position of developing countries vis-à-vis developed countries in respect of world irrigated land, world imports and world exports.In fact, I would think that this table is a summary almost of the statistical analysis made in respect of many of the guideline to which we have referred.

Having made these specific comments on the guidelines, I would like to make two brief general comments. I would suggest that the results of the progress made in respect of different guidelines of the International Agricultural Adjustment should have policy lessons.In fact policy prescriptions should be laid down and the international organizations and the countries should be requested to take steps to remove constraints on the implementation of guidelines, to provide resources and to take other policy measures.

We appreciate that the three-year period following the World Food Conference is not long enough for studying the subject of agricultural adjustment. We have found that the analysis made by the Secretariat is very useful.We suggest that such analyses should be continued and they may come up for the consideration of concerned committees, like the Committee on Commodity Problems or the Committee on Agriculture.Therafter their views can go to the Council and to the Conference.My only suggestion is that the analyses should be accompanied by policy prescriptions, to which I have already referred.

J.A. DOS SANTOS VÁRELA (Portugal): Nous arrivons à la fin de la journée et aussi de notre étude du document en discussion. A mon avis, nous avons très utilement fait un survol des problèmes de l'ajustement alimentaire mondial. Ce document, nous le savons, présente beaucoup d'intérêt et suscite bien des espoirs mais nous fait entrevoir aussi des difficultés, mais nous espérons que les progrès d'ores et déjà visibles s'accentueront à l'avenir.

D'autre part, nous reconnaissons que l'accroissement de la production des denrées alimentaires dans les pays en voie de développement est une condition de l'ajustement alimentaire mondial lui-même, tout en restant une condition essentielle pour atteindre les objectifs nationaux de développement économique et social dans lesdits pays. M'attachant à cet aspect du problème, moi-même et la délégation de mon pays n'avons pas la prétention de vous faire part de nos impressions et de nos conclusions en ce qui concerne les pays en voie de développement dans leur ensemble, mais seulement de vous présenter quelques souhaits de la part de l'un de ces pays.

Ainsi, et dans le contexte des lignes d'orientation et de l'esprit que nous venons d'apprécier, contenus dans le document qui nous est présenté, ma délégation souhaite qu'en vue de l'ajustement alimentaire mondial l'on essaie de faire quelques progrès dans les domaines suivants: développer progressivement un réseau international d'informations et de prévisions météorologiques capable d'être directement utilisé par les agriculteurs pour les services d'agriculture des pays qui le jugeront nécessaire, dans le but de rendre plus rationnelle,et plus sûre aussi, la production de la part des agriculteurs eux-mêmes; essayer de donner plus d'importance, c'est-à-dire une certaine pluralité, au problème des transferts de technologies vers les pays en voie de développement afin de les aider à établir des programmes provisionnels concernant l'évolution des tendances de la demande alimentaire et des conditions spécifiques de l'offre des produits agricoles; élaboration de projets directement liés au développement agricole, des produits fourragers, etc; enfin essayer de favoriser l'établissement d'accords bilatéraux entre pays développés et pays en voie de développement, accords qui devraient permettre la transformation de crédits à court terme, de crédits servant à l'achat immédiat des produits agricoles, en crédits à moyen ou long terme, à la condition que le pays en voie de développement acheteur utilise ces crédits pour augmenter sa capacité en termes de stockage.

R. TANABE (Japan): My comment is rather general but in particular related to the issues of trade which I have in mind.According to Resolution 9/75, which was adopted at the last Session of the Conference, countries are urged to formulate and implement their national policies taking: into account the guidelines. On the other hand, as stated in the same Resolution, agricultural policies must be formulated and implemented in the light of their own specific circumstances.I would like to point out that in some cases those circumstances do not allow national policies which are in accordance with the guidelines.

X. VERGINIS (Greece): I should like to go into more detail on what my colleague said this morning, and I should like to emphasize some points in the FAO paper.

There is no doubt that climatic conditions widely affect agricultural productions, expecially crop production. It is also well known that other exogenous factors such as trends in population growth, and particularly energy availability and trade difficulties, make it imperative that important economic, social and technological adjustments take place.

Recent estimates support the observation that the total demands for food have been increased, and the per capita consumption of grains in LDCs has been increased from 150 kgs. of grains per year to 180 kgs. per year, but the per capita consumption of grains in the DCs is higher, to account for the greater indirect consumption in the form of animal protein. The income elasticity of demand for grains is different between the LDCs and DCs and among LDCs. Increases in income result in substitution of in direct for direct grain consumption. At higher income levels, improvement in diet takes the form of a shift from carbohydrates to animal protein consumed as meat, dairy or poultry products. This is reflected in an increase in indirect consumption of grains. The distinction between the direct and the indirect consumption must be taken into account when production and consumption problems are examined.

Improvement of thesituation, by eliminating severe malnutrition, which according to the estimates of the UN Pood and Agriculture Organisation affects 500 million of the world's population, would require further increases in grain and other agricultural supplies, plus redi stributi ve schemes between DCs and LDCs and for income groups within each country.

In the latest de cade world average agricultural output has been increasing at the rate of 2.6 percent per year. No doubt that rate is higher than the average rate of population growth resulting in an increase in per capita production of 0.9 percent per year for DCs and of 0.2 percent per year for LDCs. But some of the LDCs have been achieving less than 0.2 percent annual increase in production. These countries, in order to avoid real hunger of famine for some groups, must have been relying progressively more on additional grain or other agricultural products imports to meet the food gaps.

The latter leads to a greater increase in the balance of payments deficit and makes these countries more dependent on imported agricultural products. This eliminates the possibility of an increase in domestic production in these countries, causes new fluctuations in prices in the world, creates new market instability, and emphasizes more the role of available stocks. But given the slim margin of some contingency reserves a random shock in production can grow into a veritable food crisis.

The last periodic food crises do not signal an inability for the world to produce sufficient grains; in our opinion, they are associated more with the increasing reliance on trade to supply the food needs of a larger number of countries, and on the unwillingness of the large grain exporting countries to maintain at high cost grain contingency reserves in large quantities and on a permanent basis.

The ratio of food exports to reserves has been declining to a level that substantial shortfalls in production cannot be readily met without severe price disruptions. On the other hand, food from DCs can reach the LDCs only through increased trade or through massive relief operations, either of which would involve a transfer cost and, more important, the cost of maintaining larger contingency reserves.

All this leads to the conclusion that the solution can probably be found not so much in decreasing consumption by the DCs but in increasing productionby the LDCs, particularly by some of them. Therefore, the development of domestic agriculture must be encouraged, and not only because it is a major determinant of the availability of food supplies but also because of the rose it plays in the overall economic and social development, including here the earning and saving of foreign exchange and the provision of employment to their growing population.

Agriculture in LDCs, in close collaboration with industry, must make a positive contribution to economic development. Thus, in our opinion, in order to meet their food requirements and to avoid the effects of price fluctuations for a longer period, the less developed countries will have to accord a primary role to agriculture in their development plans. Por that purpose, a greater amount of investment must be transferred to the agricultural sector for increasing cultivated land, land improvements, irriga tion, mechanization, building fixed assets, agricultural industries, etc. Research and development efforts could be included.

Given the scarcity of capital resources in most of these countries, the DCs and the international organizations could finance them on very favourable terms for developing a proper technology. At the saine time, these countries must pursue a greater labour intensification in agriculture.

On the other hand, certain measures must be taken into account at an international level if we want to achieve stable conditions in commodity trade, to avoid excessive price fluctuations, either to the producers or to the consumers; to improve and sustain the real income of individual countries; to encourage research and development in the developing countries; to improve marketing, distribution and transport systems for the commodity exports of developed countries, etc.

By taking such measures, the terms of trade will improve in favour of developing countries; an elimina tion of the economic imbalance between developed and developing countries will be achieved in the long term, and since the LDCs will expand and diversify their trade, improve and diversify their productivity and increase their export earnings with a view to counteracting the adverse effects of inflation, then we suppose that in the long term the target for a new world economic order pursued by FAO could be achieved.

B. SUSSMILCH (European Economic Community): As I mentioned this morning in my general statement, we would like to come back to several paragraphs on which we have a different interpreta tion or on which we cannot agree. This applies to paragraph 89. In our view, paragraph 89 seems to be in contradiction with paragraph 88 where it states that the developed countries have fulfilled the requirements in relation to food security which we consider as the main objective of FAO.

As far as the remarks of paragraph 89 about sharing the burden of supply and demand are conœmed, we think this should be further examined very carefully with regard to the different social and economic structures in different countries.

In regard to paragraph 149, we would like to state that the Community and the Member countries cannot agree with what is said in that paragraph, where it i a stated that relatively little attention has been given to the "feasibility of structural production adjustments for the purpose of opening the door somewhat more in a managed way to supplies from developing countries". In this regard, we would like to refer to the facts mentioned earlier in my statement: the positive results reached in the Lomé Convention, the general preference system, and our relationship and agreement with the Mediterranean countries.

In addition, we would like to remark that the concept in footnote 2 to paragraph 149 has never been seriously discussed or accepted. Therefore, we cannot speak of the re-emerging of an important current issue.

The meeting rose at 17.35 hours
La séance est levée à 17 h 35
Se levanta la sesión alas 17.35 horas



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