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61. The Conference devoted much attention to the report of the Expert Panel on Agricultural Price Stabilization and Support Policies, which had been set up in accordance with Resolution 8/57 of its Ninth Session. The Panel had been instructed (a) to analyze the effects of different agricultural support systems, including different levels of price support, with a view to obtaining a better basis for evaluating such systems, and their effect on increasing agricultural production and investment, especially in less developed countries, and to analyze also the integration of price support with other measures to increase production and agricultural incomes; and (b) to recommend guiding principles designed to minimize the adverse effects of price support policies on international trade, to be taken into account by Member Governments in establishing or reviewing their agricultural policies, having full regard to the special circumstances and problems of countries. In view of the Conference's instructions to give full consideration to the situation in less developed countries, the Panel had found it necessary to extend somewhat its considerations to include some aspects of consumer price policies, as in these countries agricultural price policies for foodstuffs were often to a large extent a reflection of policies designed primarily for the protection of consumers against high and fluctuating prices.

62. The Conference expressed its appreciation of the way in which the Panel of Experts had carried out the difficult task assigned in its terms of reference. The difficulties of resolving divergent viewpoints and taking into account a wide range of economic and social conditions were fully recognized. It was also recognized that much fuller consideration of the conditions and needs of less developed countries had been possible as a result of the regional meetings held earlier at New Delhi and Santiago. The constructive aspects of agricultural price stabilization and support policies as an aid to agricultural development and to improvement of rural welfare had been taken into account by, the Expert Panel. The analytical body of the Panel's report was generally recognized as an important step toward better international understanding in a complex and important field.

63. In the discussion of the guiding principles, however, there was some disagree merit. Some countries, stressing the need for compromise if generally acceptable principles were to be established, considered that this accounted for the rather generalized wording of certain principles. They felt that, although the experts had failed to reach unanimity on some key issues, the largest measure of expert agreement possible in so controversial a field had been attained. They considered that the principles would provide useful guiding lines to be considered by governments in framing or revising their agricultural policies, particularly, where selective expansion of production was envisaged. It was pointed out that the Panel had not been instructed to work out binding or restrictive principles to be officially accepted by governments, and that such binding principles were probably unattainable in this field.

64. Some other countries, however, thought that the proposed principles had not given enough emphasis to the principle of comparative advantage in production, to the adverse effects of support policies on international trade, or to the importance of raising efficiency and productivity in agriculture. It was pointed out that these issues were of particular importance for countries relying on the expansion of exports of primary products to secure funds for the necessary expansion of the economy, including imports of manufactured goods and raw materials. The need was especially, emphasized for Member Governments to take into consideration the interests of exporting countries, especially less developed countries, in formulating their agricultural policies

65. Criticism of the principles referred partly to their form and partly to their substance. Some countries considered there were inconsistencies between various individual principles. Others stressed the need for a better structure and sequence of the principles, which in their present form represented a mixture of general criteria, principles and instructions or advice to administrators. Some countries pointed out that the Conference, Resolution 8/57 had specifically, directed the Panel to prepare guiding principles in relation to the adverse effects of price stabilization and support policies on international trade in agricultural products. In their present formulation, the principles were much broader in coverage, and did not deal adequately with the circumstances of countries which lived by producing primary products for sale in world markets, and whose well - being depended on the expansion of international trade in these products. Some of these countries felt that the Panel had accepted price and income supports as natural and normal features of national agricultural policies, without giving sufficient consideration to their effects on the efficiency in production, or to the repercussions which surplus disposals, sometimes caused by such policies, could have on international trade. Some countries regretted that it had not been possible to reach agreement on the principles asking for (a) a gradual reduction of the support level; and (b) for the exclusion from price support guarantees of any quantities in excess of domestic needs and normal exports which were often exported under subsidies or special terms.

66. The analytical part of the Panel's report was generally commended, including the analysis of the substantial differences in the scope and objectives of policies in industrially developed and less developed countries. The different international consequences of support policies in exporting and importing countries were also mentioned. The implications for agricultural support measures of production, price and income elasticities were discussed. A number of suggestions for certain further analyses of the effects of agricultural price stabilization and support policies, which had been put forward in earlier discussions in the Committee on Commodity Problems (CCP) and the Council, were again emphasized. Among the observations made were that the inflationary tendencies of support measures which ten - led to raise farm incomes without a corresponding increase in agricultural productivity would offset much of the intended increase in farm incomes and were therefore self - defeating; that through the foreign trade measures often used to implement support policies, such as export subsidies and import restrictions, the inflationary effects might spread to other countries, that import restrictions or taxation to finance export subsidies was likely to increase consumer prices, so raising domestic costs and reducing the country's competitive power on world markets; that export subsidies would not result in an expansion of exports of commodities for which the export demand in the importing countries was inelastic, while for commodities for which demand is elastic the increase was likely to be in the volume rather than value of exports; that if an importing country levied a tariff to offset the subsidy, the result might be to increase government revenues in the importing countries rather than the income of the producers in the exporting country.

67. There was general agreement that, in view of the importance and wide ranging effects of agricultural price and support policies, further work in this field should be undertaken by the Organization. Some countries suggested that a group of independent experts should be called together to review and refine the guiding principles suggested by, the Expert Panel. A more widely held view was that while such a group might be able to draw up more definitely worded principles, there would be difficulty in securing their acceptance by member countries. In consequence, discussions between national representatives would probably be a more useful next step than further meetings of experts. Although a number of countries were prepared to endorse all or some of the guiding principles as they stood, the Conference agreed that there was scope for further improvement and refinement. It therefore decided to refer them to the CCP for further examination and revision in accordance with the directives in para. 2 of Resolution 8/57 of the Ninth Session of the Conference. The task remitted to the CCP is set out more fully in paras. 71 - 73 below.

68. At the same time, the Conference considered that the report of the Panel, and also the earlier report of the Expert Working Party of 1956, constituted an important contribution to an understanding of national and international problems in a new and difficult field. It was therefore considered that they should be made widely available for the information of Member Governments and of others concerned with agricultural price stabilization and support policies. The two reports were to a large extent complementary. The first consisted of a classification of the various price policy and support measures, and a study of their effects, especially in the more developed countries. The second report took over from the first and, basing itself on that report and on the reports of other international organizations, notably the Organization for European Economic Co - operation (OEEC) and the General Agreement on Tariffs and Trade (GATT), together with the reports of certain FAO commodity study groups, had attempted to draw general conclusions and to formulate guiding principles. The report of the Panel also gave much attention to the problems and conditions of less developed countries, for this purpose drawing largely on the reports of the regional centers held at New Delhi and Santiago.

69. The Conference agreed, therefore, that the two expert reports should be published in one volume under the title An Enquiry into the Problems of Agricultural Price Stabilization and Support Measures. It should be made clear in a preface that the two reports had not been adopted by the Organization. It was considered also that the extracts from the reports of the CCP, the Council and the Conference, giving a résumé of the comments which had been made by, delegations when the reports had been discussed in these bodies, should be included after the preface.

70. The Conference recognized that in the time at its disposal the Expert Panel could not have gone fully into all aspects of the problems of agricultural price stabilization and support policies. The Panel itself had made a number of proposals for further studies and had supported a suggestion made in the GATT expert report Trends in International Trade for a joint study of the possibility of measuring the degree of protection to agriculture resulting from support policies. 'The proposals of the Panel for further work were generally approved. The Conference also generally endorsed the suggestions for further work which had been put forward when the report had been debated by the CCP and the Council, some of which were on similar lines to the Panel's own proposals.

71. In regard to the further examination and revision of the suggested guiding principles by, the CCP, the Conference agreed that a start should be made at the next session of the Committee in the spring of 1960. It agreed further that sufficient time should be provided for in the CCP timetable for full consideration of these principles. Some countries considered that the guiding principles could not be finalized until the completion of at least some of the further studies referred to above. It was felt, therefore, that FAO should press forward as quickly as possible with those studies which had a direct bearing on the guiding principles and should endeavor to have available at least preliminary, reports in time for the 1961 Session of the CCP These reports could then be taken into consideration but the Committee before it finalized its revision of the guiding principles. It was considered that in revising the principles full account should be taken of the findings of other international organizations working in the same field, in particular GATT, where the country consultations now under way would make available a large body of information that would be of value for this purpose.

72. The guiding principles as revised by the CCP should be sent forward to the Council for circulation to Member Governments, with a view to their final adoption at the Eleventh Session of the Conference in 1961.

73. The Expert Panel had further recommended that no special machinery for "confrontations" of policies should be set up on the lines of those established by OEEC and GATT but that FAO should keep under regular review new developments in this field. The Conference decided that such reviews should be undertaken periodically by the CCP, on the basis of concise reports of important recent developments in agricultural price stabilization and support policies, to be prepared for this purpose by the Director - General. To assist the Director-General in making such reports, member countries were requested to keep the Director - General informed of major policy developments.

74. In regard to these proposals for future activities, the Conference adopted the following resolution, at the same time reaffirming the view of its previous session, that in establishing or reviewing agricultural stabilization and support policies, all member countries should aim at policies designed to minimize obstacles to international trade in agricultural products.

Salient Features of the World Agricultural Commodity Situation and Problems
1. Changes in surplus supply situations
2. Terms of trade of agricultural exporting countries
3. Adjustments of national agricultural policies
4. Regional arrangements
International Trade in Agricultural Products

Resolution No. 9/59

THE CONFERENCE

Taking into account that the complexity of problems of agricultural price stabilization and support policies, which would have necessitated detailed discussion and negotiation, has precluded a full consideration of the substance of the reports and proposed guiding principles,

Recognizing the important influence of agricultural price stabilization and support policies on agricultural development, on consumption levels, on farm incomes, and on international trade, and Recognizing further. the desirability of agreed principles to serve as guiding lines to Member Governments in establishing or reviewing their agricultural price stabilization and support policies, and the important contributions in this field made in the reports of the FAO Expert Working Party which met in 1956, of the Expert Panel which met in 1959, and of the regional meetings held in Asia and Latin America

Resolves

Requests Member Governments to assist the Director - General in preparing these reports by furnishing him with current information on important developments in this .,field, together with copies of relevant legislation,.

Requests the Director - General to publish under the title An Enquiry, into the Problems of Agricultural Price Stabilization and Support Measures the reports of the 1956 Expert Working Party and of the 1959 Expert Panel, since these reports art, largely complementary, it being understood that a general preface to the publication should indicate that the reports and guiding principles had not been formally adopted by the Organization but were published as a contribution in a new and difficult field of work, and that this Preface should be followed by a résumé and extracts from the comments included in the reports of the CCP, Council and Conference;

Endorses the proposals for further work in Chapter X of the report of the Expert Panel and in the reports of the CCP and Council, and requests the Director - General to implement them as soon as is practicable within the regular activities of the Organization and Considers that in carrying out all the above proposals, full account should be taken of further work in this field by other international organizations, including GATT.

Commodity Problems

75. The Conference, in its review of the world agricultural commodity situation and prospects, reaffirmed its belief in the great importance of FAO's work in the commodity field, which it expected to grow further because of the need for stronger international co - operation in this sphere.

Salient Features of the World Agricultural Commodity Situation and Problems

76. The Conference had before it the Reports of the Thirty - First and Thirty - Second Sessions of the CCP, together with other relevant documentation.

77. The Conference concurred with the CCP's summary of the following salient features of the world agricultural commodity situation and problems:

1. Changes in surplus supply situations

78. Supplies of the staple agricultural commodities continued high and, in a number of cases, well in excess of market demands. Agricultural production was at high levels in 1958/59, while the volume of exports declined somewhat. Consequently, there was an increase in the value of aggregate stocks of agricultural commodities of some 10 percent by the end of 1958/59, in contrast with the moderate reduction of the preceding year, North America accounting for the major part of the increase and holding the bulk of the stocks.

79. As a result of the large cereal harvest of 1958/59, there was a sharp further increase in the already large stocks of wheat and coarse grains, especially, in the United States. Stocks of coffee had also risen markedly. There was little change in stocks of cotton. On the other hand, dairy, product surpluses had largely disappeared and prices of dairy products had risen mainly because of the drought in Europe in the summer of 1959, and the supply position of dried skim milk had changed sharply.

80. No major change in the level of stocks of wheat seemed likely in 1959/60 but a substantial increase in stocks of coarse grains was expected to follow a large harvest in the United States. Provided the current upward trend in consumption was maintained, stocks of cotton should show little change. Though exports of coffee were likely, to be higher in 1959 than in 1958, a further substantial rise in coffee stocks in exporting countries was probable. The outlook for dairy products remained uncertain.

(b) Implications for programs of surplus disposal

81. The disappearance of surplus stocks of dairy products, especially of dried skim milk, illustrates some of the difficulties that may be encountered in longer - term plans based on the utilization of surpluses.

82. The Conference, in 1957, had referred to the semipermanent nature of the world surplus problem. Thus, countries interested in obtaining surplus supplies on concessional terms might have assumed that they could count, in the formulation of their economic plans, on a considerable degree of continuity in the availability of such supplies of particular commodities. Experience had shown, however, that while stocks of several major staple commodities had indeed continued to grow, it was nonetheless possible for surplus situations in some commodities to change quickly, thus calling for sudden adjustments or interruptions of special programs. Given the importance of careful advance planning in development programs, as well as the social hardships and hazards to health involved in sudden interruptions of special welfare programs, any uncertainty concerning future availabilities of surplus commodities on special terms underlines the importance of attention being given by recipient countries to the expansion of indigenous production, to the development of reserve stocks, and to the use of regular sources of supplies.

(c) Uncertain prospects for supplies of dried skim milk on concessional terms

83. While it was difficult at the. time of the Conference Session to determine whether or not the interruption in the availabilities of dried skim milk on concessional terms was of a short - term nature, the Conference noted that the implications for the world - wide supplementary feeding programs for children and others sponsored by the United Nations Children's Fund (UNICEF) and other agencies, which were now serving millions of persons, were serious and likely to dislocate many valuable programs.

84. Para. 361 of this report contains certain recommendations for dealing with some aspects of this situation. The Conference also decided that steps should be taken to assess the prospects for the availability of dried skim milk supplies in 1960, including the stocks in the hands of welfare agencies distributing dried skim milk, and their future requirements. It accordingly requested the Director - General to make such an assessment by whatever means he found most practical.

2. Terms of trade of agricultural exporting countries

85. The Conference noted that, despite somewhat more favorable price developments for agricultural exporters in recent months, due in part to seasonal influences but also associated with the effects of economic recovery, the long - term unfavorable trend in the terms of trade of agricultural exporting countries continued nonetheless to cause concern, particularly in the case of the economically underdeveloped countries.'

86. Unlike some of the upswings in the past, the present economic recovery in the major industrial countries was proceeding against the background of generally, stable prices which, however, partly reflected continuing low levels of prices of some foodstuffs and agricultural raw materials in international trade. The heavy current supplies of many commodities, and the likelihood of further rises in stocks of some " surplus" commodities at the end of the 1959/60 season, made unlikely any major improvement in the terms of trade of agricultural exporting countries as a whole.

87. The Conference also recognized that commodity price movements in recent years largely reflected changes in the supply position of individual commodities and, in some Cases, long - term structural problems in supply, and demand. These problems presented formidable obstacles to economic development. Moreover, the persistence of factors limiting the expert outlets and earnings of agricultural exporting countries were a brake on the expansion of world trade.

3. Adjustments of national agricultural policies

88. The Conference endorsed the emphasis placed by the CCP on the need for adjusting national agricultural policies in such a way as to promote a better balance between supply and demand in international markets, and for correcting the growing divergence in standards of living between countries in different stages of economic development. National agricultural policies and the problems arising from them were being studied in various international forums. The Conference was of the opinion that such discussions could contribute substantially to a better understanding of the problems involved and that there was need to give continuing attention to the basic issues of national policies and their international effects. Such understanding could help toward removing some of the causes of the current disequilibrium in the world economy.

89. Because of the importance of these questions, the Conference concluded that it was essential to continue the studies of national policies and their possible international effects. The findings and recommendations of the Conference on price stabilization and agricultural support measures are contained in paras. 61 - 74 of the report. In this connection, the Conference welcomed the CCP's decision to undertake periodic reviews of national policies for grains and dairy, products.

4. Regional arrangements

90. The Conference recognized the growing trend in recent years toward regional arrangements. Such arrangements aimed at promoting within the regional units concerned greater freedom of trade, higher rates of economic growth and, in some cases, closer political and economic integration. These regional arrangements might well have repercussions on trade in agricultural commodities. The interest in such arrangements therefore tended to spread beyond the parties immediately concerned. The Conference reiterated the hope that in working out such arrangements great care would be taken to avoid restricting trade opportunities of third countries and aggravating the existing imbalance in international commodity situations.

91. In view of the foregoing considerations, the Conference resolved as follows:

International Trade in Agricultural Products

Resolution No. 10/59

THE CONFERENCE

Having in mind the export and balance - of Payments Position of countries, particularly of less developed countries, depending heavily on exports of agricultural products,

Having in mind the unfavorable trend of terms of trade for agricultural exporting countries in recent years,

Having further in mind the possible repercussions of regional or subregional groupings on international trade in agricultural products,

Stressing the need for the growth of international trade in agricultural products,

Reiterating the desirabiliy of intensifying intergovernmental consultations on national or international measures affecting international trade in agricultural products,

Recalling with interest the work of the Committee on Commodity Problems and its subsidiary bodies,

Welcoming the work undertaken by the Director-General in the field of commodity problems,

Bearing in mind the activities of other international bodies with responsibilities in this field,

Calls upon Member Governments, in framing, their policies, to have regard to the importance of establishing and maintaining conditions favorable to the exports of countries, Particularly the less developed countries, which depend heavily, on exports of agricultural products, and to participate in consultations aiming at improving international trade in agricultural products;

Expresses the hope that countries taking part in various regional or subregional groupings will keep constantly in mind the interests of agricultural exporting countries and will develop with them consultations aiming at improving international trade in agricultural products;

Resolves that the CCP and its subsidiary bodies should keep under review new developments in agricultural policies which might have repercussions on international trade in agricultural products;

Requests the Director - General to examine, in his work in the commodities field, including work undertaken in co - operation with other international bodies, the implications of national or international measures on international trade in agricultural products.

1. Review of consultative procedures
2. Operation and adequacy of the FAO Principles of Surplus Disposal
3. Growing acceptance of FAO Principles
4. Recommendations for further action
5. The FAO Principles of Surplus Disposal and the Guidelines of the Wheat Utilization Committee

92. In 1957, the Conference endorsed the action taken by, the CCP through its Consultative Subcommittee on Surplus Disposal to assess the observance and adequacy of the FAO Principles of Surplus Disposal and Guiding Lines.

93. The Conference expressed its satisfaction with the resulting Report on the Operation and Adequacy of the FAO Principles of Surplus Disposal and Guiding Lines (C 59/10)

1. Review of consultative procedures

94. In the first part of this report, the Subcommittee had made a number of recommendations for strengthening and safeguarding its consultative procedures. In this connection, the Subcommittee had found it desirable, for its working purposes, to define what was meant by "surplus disposal".

This definition, as interpreted by the CCP, together with the other conclusions in the first part of the Subcommittee's report and the CCP's comments on it, had been circulated to Member Governments of FAO with a request for their co - operation in furthering the work of the Subcommittee.

2. Operation and adequacy of the FAO Principles of Surplus Disposal

95. The second part of the report concluded that, in general, the FAO Principles of Surplus Disposal and Guiding Lines were now as adequate as they had been when first developed. The Subcommittee had felt, however, that some refinements in language and certain rearrangements could be made with advantage.

96. The Conference, while paying tribute to the Subcommittee for its work, felt that the nature of the suggested amendments was not such as to warrant the renewal of the procedures for formal acceptance by governments. Some delegations, moreover, felt that the proposed amendments went somewhat beyond refining and improving the text and changed its emphasis. It was also noted that the incorporation of part of the text of the Guiding Lines into two of the Principles might cause some legal difficulties, because governments, although they had formally agreed to adhere to the Principles, had been asked only, to take account of the Guiding Lines.

3. Growing acceptance of FAO Principles

97. Since the Ninth Session of the Conference, the Governments of Greece, Indonesia and Uruguay, had notified the Director General of their formal acceptance of the Principles. This brought the total number of formal acceptances to 40.

98. The Conference also gratified to learn that the FAO Principles and Guiding Lines, as originally adopted, had come to be more and more widely known, and were being frequently invoked in both bilateral and multilateral consultations between governments. The, had also been taken into consideration by other organizations dealing with matters relating to surplus disposal.

4. Recommendations for further action

99. The Conference resolved as follows:

Resolution No. 11/59

Operation and Adequacy of FAO Principles of Surplus Disposal and Guiding Lines

THE CONFERENCE

Considering that disposals of agricultural surpluses on special terms can play an important role in increasing consumption and facilitating economic development, provided that the disposals are made without harmful interference with normal patterns of trade,

Being convinced that the FAO Principles of Surplus Disposal and Guiding Lines are a valuable instrument for guidance to governments in transactions, Programs, policies, and consultations relating to disposals and utilization of agricultural surpluses,

Having taken cognizance of the review undertaken by the Committee on Commodity Problems, through its Consultative Subcommittee on Surplus Disposal, of the operation and adequacy of the FAO Principles of Surplus Disposal and Guiding Lines in the light of experience since their adoption in 1954,

Concluding that the FAO Principles and Guiding Lines are as adequate today as they were when first developed,

Noting the benefits to be derived from present arrangements for consultative procedures,

Reaffirms the usefulness and validity of the FAO Principles and Guiding Lines

Requests the Director - General

5. The FAO Principles of Surplus Disposal and the Guidelines of the Wheat Utilization Committee

100. The question was raised whether the Guidelines adopted by the Wheat Utilization Committee were mere projections of the FAO Principles for Surplus Disposal, or whether there had been a shift of emphasis, since the Wheat Utilization Committee Guidelines appeared to be concerned mainly with the promotion of sales of wheat on commercial terms, whereas the FAO Principles stressed as a basic aim the use of surpluses to increase consumption and to aid economic development in underdeveloped countries. It was pointed out in reply that in their Guidelines, the Wheat Utilization Committee had elaborated only one of the FAO Principles and had not touched on the others. In practice, the Committee was giving consideration to means of increasing consumption and also to the connection between wheat surpluses and economic development.

101. The Conference expressed its appreciation of the enquiry made at its request by the Director - General, with the co - operation of the Governments of India and Pakistan, into the practical aspects of the problems of establishing national food reserves.'

102. With the general acceptance of the conclusions in the report by the Economic and Social Council, it was now for the interested parties to follow up with the formulation of practical plans. The Conference drew the attention of interested governments to these possibilities. The Conference also invited governments to assist the Director General in the preparation of periodic reviews of existing arrangements and plans for the establishment of national reserves, as requested by the CCP.

103. Suggestions were put forward for arrangements designed to facilitate the establishment of reserves and the co - ordination of surplus disposal action for this and related purposes. One of these proposals was for a World Food Bank, with food deposits to be held in places where they could produce immediate results in remedying local food scarcities and evening out excessive price fluctuations. The Conference also took note of a suggestion that further thought should be given by FAO to the possibility of furthering the utilization of nationally held surpluses through more effective multilateral consideration of disposal programs, facilitated by an exchange of information on the current and future food requirements of countries and regions, and on existing stocks and disposal programs.

104. The Conference had before it a statement and resolution on intergovernmental commodity consultations and action, put forward by the Executive Committee of the International Federation of Agricultural Producers. The Executive Committee recommended that:

105. The Conference expressed its appreciation of the interest shown over the years by IFAP in FAO's work on commodities. The present group of proposals for the strengthening of FAO's machinery for intergovernmental commodity consultations represented another example of that constructive interest which, it was hoped, would be sustained in the future.

106. The Conference recognized that the IFAP proposals raised important points of substance and procedure. The proposal relating to the suggested redistribution of functions between the CCP and its Washington Subcommittee involved a number of difficult points. It was doubtful whether a clear distinction could be drawn between problems calling for short - term and those calling for long - term solutions. The Conference also noted that the CCP commodity groups, under their present terms of reference, were already dealing with both short - term and long - term questions, and that under the IFAP proposals these functions would presumably have to be divided. It would also be difficult to provide the Washington Subcommittee with the commodity specialists who would be required.

107. Some delegates thought that there might be some gains to be derived by the CCP from the existence of a standing subcommittee capable of dealing with matters requiring urgent attention between the regular CCP sessions. The Conference noted that in practice the CCP could always refer to the Washington Subcommittee any questions falling within the Committee's own competence, and that the CCP had already decided that at its next session it would give further consideration to the organization of its work and that of its subsidiary bodies.

108. In the course of discussion on the importance and future orientation of FAO's work on commodity, problems and policies, the Conference felt that the CCP should give more attention to the broader aspects of policies as well as to individual commodity aspects. In giving special emphasis to national policies concerning the production, consumption and trade of agricultural commodities and to their effects on international trade and on economic development, the CCP should continue to be primarily concerned with practical solutions of problems arising in this field. In this respect, the Conference stressed the importance of FAO's continuing close co - operation with other intergovernmental bodies concerned with commodity matters.

109. The Conference agreed that the CCP, in connection with its consideration of hard fiber questions, should also consider questions relating to jute.

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