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Associate Members

1. Following a series of discussions between the Executive Director of UNIDO, Mr. I.H. Abdel-Rahman and the Director-General of FAO, Mr. A.H. Boerma, the following broad lines of cooperation between FAO and UNIDO are agreed upon. Throughout the discussions, there was recognition of the need to demarcate, to the extent possible, within the limits of the mandates of the two Organizations, areas of primary responsibility and initiative as well as opportunities for joint action, where appropriate, in the fields of common concern.

2. FAO, according to its Constitution, is responsible for raising levels of nutrition and standards of living, securing improvement in production and distribution of all food and agricultural products, and for this purpose it shall promote national and international action with respect to, inter alia, the improvement of the processing, marketing and distribution of food and agricultural products. The Organization during the last two decades has built up considerable experience and competence in these fields.

3. UNIDO, under General Assembly resolution 2152(XXI) has responsibilities to assist in, promote and accelerate the industrialization of the developing countries, with particular emphasis on the manufacturing sector, by undertaking activities which include industrial planning, programming and research, application and adaptation of technology, training, management, technical and economic feasibility studies and assistance in obtaining finance for industrial projects.

4. With a view to harmonizing the activities of the two Organizations in the industrial field in a constructive way which would be in the best interest of the developing countries, adjustments are considered necessary. Such adjustments will have to come gradually on the basis of the best possible judgement in working together and sharing experience and competence to develop a united effort.

5. Under resolution 2152(XXI) of the General Assembly quoted above, UNIDO "shall play the central role in and be responsible for reviewing and promoting the coordination of all activities of the United Nations system in the field of industrial development. "

6. Three areas of cooperation are dealt with, namely:

7. Arrangements for inter-Secretariat consultations are also proposed to help implement the provisions of the Agreement as described in paragraph 22.

I. Complementary areas

8. The following four areas have been identified as offering scope for promoting joint action:

9. The manner in which the two Organizations will cooperate in these areas of complementary action is agreed as follows:

10. UNIDO, through its industrial promotion activities, deals generally with sources of finance, technology and "know-how", whether individual, corporate or public. It is recognized that useful collaboration should be established between UNIDO and this Programme because of the common objective of promoting industrial development in developing countries. For this purpose, FAO undertakes to arrange the necessary contacts between the Programme and UNIDO.

11. It is agreed that cooperation in these areas with respect to (a) continuous consultation, (b) formulation of joint programmes, and (c) cooperation in field projects will be established through the inter-Secretariat Committee referred to elsewhere in this Agreement.

II. Areas of joint concern

12. Complex problems are involved in developing effective cooperation between the two Organizations with respect to industries for processing agricultural and food products; fisheries industries and forest industries. The different commodities involved have been grouped under two headings, namely Group I dealing with non-edible and some edible commodities, and Group II comprising bulky and perishable food commodities.

Group I

13. The responsibilities of the two Organizations as regards Group I are presented in tabular form in Annex I attached, except for forestry products, which is an integral part of this Agreement.

Forestry Products

14. Item 9, Column I of the Annex, relating to forestry products represents a statement by FAO on its current operations. With regard to cooperation in this field it was agreed that experience gained from operation of any joint Special Fund projects should provide valuable assistance to the two Organizations in determining the most suitable form of cooperation. In the meantime, the two Organizations would exchange all current material relevant to sawn lumber, pulp and paper, and woody-tissue type panels (veneer, plywood, fibreboard and particle board). It is agreed that in the light of the experience and information thus acquired, the matter should be re-examined every six months by the Inter-Secretariat Committee set up under this Agreement in order to resolve this matter as soon as possible.

Group II

15. Group II which will be designated hereafter as "Food Industries" comprises the following:

Cooperation in this Group will be governed by the following principles.

III. Principles regarding cooperation in the field of food industries

16. In all aspects of food industries, including the establishment of production facilities, expansion of existing capacity, research and development, FAO and UNIDO will cooperate according to the following principles.

17. It is agreed that FAO has responsibility with respect to production, storage, marketing and technology of processing of the agricultural raw materials for the food industries, and for quality and nutritional aspects of the finished products; and that UNIDO has responsibility with respect to the equipment, engineering, chemical and managerial aspects of the industry. Moreover, UNIDO, because of its general responsibilities for industrial development and for reviewing and promoting the coordination of the work of the United Nations family in the field of industrialization, has responsibilities in the general economic aspects of food industries, including the sound development of these industries in a given country in line with the requirements of the industrialization process as a whole.

18. All requests for projects in regard to food industries received by one Organization will be reported to the other. Both Organizations, in close cooperation with the UNDP Resident Representatives, will participate jointly in the development and formulation of Special Fund projects of common interest, so as to reflect an integrated FAO/UNIDO approach consistent with the needs of the Governments and to bring to the latter the combined experience of the two Organizations in their respective fields of competence. In the case of projects where feasibility studies are required, these will be conducted, as appropriate, jointly by the two Organizations.

19. It is understood that the ultimate allocation of executive responsibility for projects financed by UNDP rests with the Administrator of the UNDP. However, the Inter-Secretariat Committee to be established by the Organizations under this Agreement will make recommendations for the allocation of executive responsibility for Special Fund projects in the food industries on the basis of the guidelines mentioned above. It will recommend the designation of one or the other Organization as executing or associated agency as the case may be. In the case of disagreement on the latter point by the Inter-Secretariat Committee, the matter will be referred to the Heads of the Organizations for a decision.

20. It is likely that in most cases FAO will be the executing agency and UNIDO the associated agency, since it is recognized that FAO will have the major interest in the food industries. However, in the projects where the interests of UNIDO are predominant because of its competence as defined above, UNIDO will assume the role of the executing agency and FAO that of the associated agency.

Protein concentrates

21. Because of FAO's primary responsibility for food and nutrition, it has a major role in solving protein problems. A Protein Advisory Group, jointly sponsored by FAO, WHO and UNICEF is now tendering advice on protein problems; and in terms of General Assembly resolution 2416(XXIII), its functions and terms of reference have been widened to provide advice to all members of the UN system concerned. In this context, FAO has responsibility for the development and promotion of protein concentrates, research and experimentation with respect to the acceptability for human consumption, and development of food habits. UNIDO, on the other hand, has responsibility for the production of protein as a branch of the manufacturing industry. Since pilot plants are an integral step in the development of commercial production, close cooperation will be established between the two Organizations in this preliminary stage to large-scale manufacture.

IV. Arrangements for inter-secretariat consultation

22. A joint Inter-Secretariat Committee will be set up by the two Organizations, which will meet alternatively in Rome and Vienna for two or three days as frequently as required. The functions of this Committee are to assist the Director-General of FAO and the Executive Director of UNIDO in implementing the provisions of this Agreement, including the Annex.

23. The Committee will have the following terms of reference:

24. With the approval of the two Executive Heads, the Inter-Secretariat Committee may establish subsidiary working groups to deal with specific matters, as may be required.

S. I. S. Projects

25. While the majority of S. I. S. projects will be implemented by UNIDO, the principles mentioned in this section will, in consultation with UNDP, apply to S.I.S. projects in food industries; and FAO may expect to participate in the implementation of such projects partially or totally, depending on its interest in the project as assessed in the light of these principles.

26. In case of lack of agreement by the Committee, the question will be reviewed by the Executive Heads or representatives appointed by them for the purpose.

27. The two Executive Heads will review the work of the Inter-Secretariat Committee from time to time as appropriate, and develop any further guidelines which may be necessary to improve the operation of the Inter-Secretariat Committee in the light of experience.

V. Exchange of information on programmes and projects

28. The principles of exchange of information, consultation and cooperation will apply, in addition to operational projects as described above, also to other relevant areas, such as seminars, symposiums, technical meetings and training courses.

29. To enable the Inter-Secretariat Committee to perform its functions the relevant services of the Organizations will make available to it all necessary information. Such information will include proposed programmes and projects, plans for publications, studies, surveys, conferences, seminars, training centres and technical meetings covered by the Agreement.

30. This information will also include relevant suggestions made by the Industrial Field Advisers of UNIDO as well as by the field staff of FAO, so that cooperation envisaged in this Agreement will be extended to the field level, and as far as possible to the stage in which programmes, and projects are conceived.

31. For reasons of expediency, technical consultations and exchange of information should not necessarily take place for every project or programme, and may be limited by recommendation of the Inter-Secretariat Committee to major projects and main aspects of the development of the industries mentioned.

VI. Implementation of the agreement

32. This Agreement will be put into operation immediately and will be submitted by the two Organizations to their respective governing bodies for endorsement as early as possible.

33. The provisions of this Agreement do not apply to projects already established. However, it is open to either Organization to request the other to initiate negotiations for participation in any such project where its contribution might enhance effectiveness. If there is mutual consent, details of such cooperation will then be worked out.

34. This Agreement will be communicated by each Organization to all its headquarters and field staff concerned, in order that its provisions shall be observed in a spirit of goodwill and cooperation at all levels, and in the best interests of Member Countries. A copy of this Agreement will also be transmitted to the Secretary-General of the United Nations and the Administrator of the UNDP.

Geneva, 9 July 1969

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