Contents  

XI. Report of Commission B to the Conference


A. Constitution and organization
B. Finance
C. Annex to Report of Commission B


Containing the Reports of Committees I and II

COMMISSION B was appointed under the chairmanship of Professor André Mayer of France to consider the administrative, constitutional, and financial matters on the agenda of the Conference. The Commission held two meetings. At the first it established two committees to deal respectively with matters of constitution and organization and with matters of finance. At its second meeting the Commission received the reports of these Committees and approved them for submission to the Conference with amendments which have been incorporated in the reports attached hereto.

A. Constitution and organization

1. Committee I on Constitution and Organization, under the chairmanship of Mr. I. A. H. Peters (Netherlands), held five meetings. The following items were assigned to the Committee by Commission B:

Draft Agreement with the United Nations

Cooperation between FAO and International Organizations

Assumption of the Functions and Property of the International Institute of Agriculture, including the Centre International de Sylviculture

Assumption of the Functions of the Comité International du Bois

Amendment of the Constitution and Rules of Procedure

In addition the Committee agreed to add the following items drawn from the Director-General's report :'

Regional Offices
Periodic Reports from Member governments
FAO Committees, national and regional
Publications of FAO

Draft Agreement with the United Nations

2. The Committee considered the provisions of the Draft Agreement with the United Nations [see Appendix], and approved the test without change. On the question on which the Executive Committee had requested the particular consideration of the Conference, the Committee agreed:

(1) That the article providing for assistance to the Security Council does not require an amendment of the FAO Constitution since FAO is clearly bound by its Constitution and cannot undertake any obligations beyond the terms of its basic instrument.

(2) That the article on headquarters and regional offices, while recognizing the desire ability of FAO's being situated at the headquarters of the United Nations provided that the Organization could effectively and economically discharge its duties and maintain effective liaison with those specialized agencies with which it is particularly concerned, nevertheless leaves the decision to FAO and does not prejudice further consideration of the decision taken at the First Session of the Conference of FAO at Quebec.

(3) That the article on budgetary and financial arrangements is in conformity with the resolutions adopted by the Quebec Conference.

3. In discussing the question of access to the International Court of Justice, the Committee endorsed the statement submitted to the Economic and Social Council [appendix], and supported the view that FAO should be given the same provision as that given to the International Labour Organisation.

4. The Committee emphasized the importance of bringing the agreement into force as soon as possible in order that close working relationships may be established with the United Nations and agreed to recommend that the Conference approve the Draft Agreement and instruct the Director-General to so report to the United Nations.

5. The Committee also recommended that, if the General Assembly of the United Nations should not concur in the position of the Organization on relations with the International Court of Justice, as set forth in the statement to the Economic and Social Council the Director-General be authorized to sign the agreement without any article on this subject and to continue discussions with the United Nations and to report thereon to the next session of the Conference.

6. In discussing the article on headquarters, the Committee concurred in the view of the General Committee that the question of the permanent site of FAO should be referred to the Director-General for study. The Committee proposed that, after consultation with the Executive Committee, a report be prepared for member governments so that the subject can be placed on the agenda of the next session of the Conference.

Cooperation between FAO and International Intergovernmental Organizations

7. The Committee approved the action taken by the Director-General during the year in establishing relationships with the other specialized agencies.

8. Attention was called to the recommendations of the Standing Advisory Committees on Nutrition and Agriculture that joint committees be set up with the World Health Organization on nutrition and hygiene, and it was suggested that joint committees might be set up with the International Labour Organisation, chiefly on questions of social security for agricultural populations, and with the United Nations Educational, Scientific, and Cultural Organization on the question of rural education.

Cooperation with Nongovernmental Organizations

9. The Committee concurred, with certain amendments, in the recommendations of the Director-General concerning the relationships with international nongovernmental organizations, and adopted a resolution concerning procedures to be established. This resolution is based on the principle that as much flexibility should be maintained as possible, so that FAO may best utilize the experience of nongovernmental organizations according to its own needs, while following procedures similar to those of the Economic and Social Council so that there will be no major inconsistencies between the United Nations and FAO.

10. It is proposed that the organizations should be classified in three categories:

(1) a limited number of important international organizations with interests covering a large part of FAO's field of activity and of a standing that renders their views on policy a matter of great interest to governments and to FAO,

(2) significant international organizations that are interested in the promotion of one or more of the specific aims of FAO, and

(3) international scientific organizations.

11. The Committee unanimously recommends that the following organizations be regarded as coming within Category (1): - International Cooperative Alliance
- International Federation of Agricultural Producers
- World Federation of Trade Unions
12. The Committee took note of the view expressed by the Belgian representative that if the International Council of Women and the Save the Children International Union should ask to participate in the work of FAO, they should be regarded as coming within Category (1). It was agreed, however, that the question of categories should be decided upon by the Conference at the beginning of the next session on recommendations from the Executive Committee. It was felt that more information would be needed about the scope of work of these organizations and that there should be consultation with representatives of the organizations and with the United Nations.

13. The Committee agreed to recommend to the Conference that the Executive Committee should consider and report on applications at each session and that a special committee of the Executive Committee should be established for consultation with organizations admitted to Category (1).

International Institute of Agriculture

14. The Committee was informed that, in accordance with the resolution adopted by the Quebec Conference, the members of the Permanent Committee of the International Institute of Agriculture met 30 March 1946 and approved a protocol for the dissolution of the Institute, together with a covering resolution for submission to the General Assembly of the Institute 8 July. [See Appendix] At the meeting of the General Assembly, the resolution approving the protocol and directing the Permanent Committee to wind up the affairs of the Institute was adopted by a unanimous vote.

15. The affairs of the Institute will not be formally wound up and its assets and liabilities transferred to FAO until the Permanent Committee has completed its work of collecting the contributions due from member governments and satisfying the financial obligations to the staff.

16. The Director-General reported that arrangements have been made for a member of the FAO staff to direct the work of the Institute with the help of an advisory committee chosen from the members of the Permanent Committee. The staff of the Institute has been put on the staff of FAO on a temporary basis and the Institute is now functioning as the Rome office of FAO. Certain statistical work can best be continued in Rome and it is proposed that the work on the publication of the Yearbook be continued. The Italian Government has offered to place the Institute building at the disposal of FAO. The Director-General strongly recommended that as soon as possible arrears in contributions due to the International Institute of Agriculture by member governments should be paid to enable the Liquidation Committee to fulfill its moral obligations to the personnel.

17. The Committee took note of the fact that the Quebec resolution had been carried out and endorsed the action that had been taken by the Director-General.

Centre International de Sylviculture

18. The Committee was informed that the Centre International de Sylviculture (CIS), which is an integral part of the International Institute of Agriculture, has legal obligations amounting to about $50,000. Since at the time of the Quebec Conference it was assumed that the merging of the IIA and the CIS with FAO would not involve any financial obligations, the Committee requested that the Finance Committee consider the question of the assumption of the debts of the CIS by FAO and report thereon.

Comité International du Bois

19. The Committee noted that the resolution of the Quebec Conference concerning the merging of the Comité International du Bois (CIB) with FAO had not been carried out by the governments members of CIB and requested that further investigations be made of the status of CIB and that the Finance Committee consider whether the actual assets of CIB would justify assumption of the liabilities of CIB, which are estimated at $15,000. [See Appendix] The Committee recommended that the Executive Committee be empowered to decide on this issue since the situation is not clear enough at this time to take action.

Amendments to the Constitution

20. The Committee agreed to recommend the adoption by the Conference of the amendment proposed by the First Session concerning the loss of voting rights for nonpayment of contributions. This is parallel to the provisions of the United Nations Charter.

21. The Committee endorsed the recommendations of the Executive Committee that no change be made at this time in the rules concerning the frequency of Conference sessions.

Amendments to the Rules of Procedure

22. The United States Delegation proposed, and the Committee approved, an amendment to Rule XXIV of the Rules of Procedure providing that the emoluments or allowances of members of the Executive Committee should be determined by the Conference in connection with the adoption of the budget. The Committee referred the recommendation to the Committee on Finance which approved and referred the recommendation back to the Committee for recommendation to the Conference.

23. The General Committee recommended, and the Committee on Constitution and Organization approved, a further amendment to Rule XXIV providing that any Member of the Executive Committee who during his term of office failed to attend two consecutive meetings and was unable to give a satisfactory explanation for his absence should be considered to have resigned and the vacancy should be filled by the Conference at the next session for the period of the uncompleted term.

Regional Offices

24. The Committee discussed the establishment of regional offices. Some members felt that regional offices should be set up without delay.

25. The Director-General said that he believed that it would be premature to establish regional offices at this time, inasmuch as the headquarters of FAO had not yet been determined and the functions of the offices had not yet been decided upon. As recognized in the Draft Agreement [see Appendix], it is desirable that the FAO regional offices be closely associated with those of the United Nations and that there should be consultation with the UN, as well as with other specialized agencies as to the location of such offices. The establishment of National FAO Committees is important and he proposed to call a conference of these Committees in the near future to discuss the functions and location of regional offices.

26. The Secretary-General called attention to the advisability of referring the matter to the Finance Committee since provision would have to be made in the budget for the establishment of regional offices and the Committee agreed to ask the Finance Committee to consider this.

27. The Committee approved the proposal of the Director-General.

28. The Committee received a recommendation from the Forestry Committee that the Forestry Division of FAO organize before the next annual session of the Conference regional offices in Europe, including the Mediterranean area, North America, Latin America, and Asia. The Committee felt that it was important that the regional offices of FAO divisions should all be located in the same place. It was agreed that the recommendation should be referred to the Director-General for decision upon consultation with the Executive Committee and in the light of the decision on regional offices in general. The Fisheries Committee called the attention of the Committee to the importance of the early establishment of regional offices with adequate fisheries staff. It was agreed that this recommendation, too, should be referred to the Director-General for decision in the same way as the similar Forestry Committee recommendation.

FAO Missions

29. The Committee on FAO Missions referred to the Committee a recommendation that FAO work out an agreement with UNRRA to continue agricultural advisory services in Greece, and that FAO establish a technical unit to aid underdeveloped countries such as Greece in developing small industries. It was agreed that these recommendations should be referred to the Director-General for consideration but that due regard should be given to the compatibility of the latter proposal with the constitutional limitations and the budgetary situation of FAO.

30. The Committee on FAO Missions also referred a proposal to the Committee concerning a United Nations mission for Greece. The Committee, taking note of the proposal, and being informed that the Greek Government had agreed to such a mission, recommended that the Director-General, in transmitting the preliminary report of the FAO Mission for Greece. to the Economic and Social Council, call particular attention to the recommendation relating to the proposed United Nations mission for Greece, indicating the readiness of FAO to participate in any discussions which the Economic and Social Council may initiate with the various specialized agencies on this subject and the further readiness of FAO to participate in any such missions as may be established.

National FAO Committees

31. The Committee discussed the importance of developing National FAO Committees and suggested that member nations be kept informed concerning the types of Committees set up by other members. The proposal was made that the terms of reference of the Committees should be suggested by the Director-General for the consideration of member nations. It was recognized, however, that the Committees would necessarily vary from country to country and that FAO could not decide for each country how its Committee should be set up.

Periodic Reports

32. Article XI of the Constitution provides that:

"1. Each member nation shall communicate periodically to the Organization reports on the progress made toward achieving the purpose of the Organization set forth in the Preamble and on the action taken on the basis of recommendations made and conventions submitted by the Conference.

"2. These reports shall be made at such times and in such form and shall contain such particulars as the Conference may request. "

33. The Preamble of the Constitution provides that: "The Nations accepting this Constitution, being determined to promote the common welfare by furthering separate and collective action on their part for the purposes of  

- raising levels of nutrition and standards of living of the people under their respective jurisdictions,

- securing improvements in the efficiency of the production and distribution of all food and agricultural products,

- bettering the condition of rural populations, and thus contributing toward an expanding world economy,

".... will report to one another on the measures taken and the progress achieved in the fields of action set forth above."
34. The nature of the periodic reports from member governments was discussed and the Committee suggested that the reports should, if possible, cover the following points amongst other subjects: Implementation of the resolutions passed by FAO's annual sessions of the Conference.

Report on other actions taken in the scope of FAO general policy and not covered by resolutions or conventions (scientific research, nutrition surveys, participation of standing committees, eventual regional agreements, etc. ) .

Relation of each government with intergovernmental organizations set up at the initiative of FAO (for example, the International Emergency Food Council).

Report on the activity of the National Committee.

Action taken by each government as a member of other international organizations (for example, the International Labour Organisation, World Health Organization, United Nations Educational, Scientific, and Cultural Organization, and the proposed Trusteeship Council of United Nations) to promote the general action of FAO.

Eventually, action taken in dependent territories should be treated separately in the periodic report.

Publications of FAO

35. The Committee emphasized the need for the simultaneous issuance of the basic documents, reference material, and reports of FAO in both the working languages, as well as the translation into the official languages of the more important documents. Various members of the Committee recognized the difficulty of obtaining interpreters and translators, and expressed the hope that their governments would be willing to cooperate in every possible way.

36. It was suggested that care should be taken in the publication of reports to see that there was an indication of whether the reports were official documents of FAO or reports of special committees.

37. The wish was expressed that FAO should undertake to maintain a bibliography of available documentary films of possible interest and usefulness in countries members of FAO.

B. Finance

1. Committee II on Finance, under the chairmanship of Mr. Václav Majer (Czechoslovakia), held six meetings.

2. The following items of the Conference agenda were referred to the Committee by
Commission B:

- Accounts of Interim Commission, 1 October 30 November 1945,
- Budget of FAO for the first financial year,
- Accounts of FAO for the first financial year,
- Status of Contributions,
- Proposed budget of FAO for the second financial year.
3. Further related matters were referred to the Committee by other committees and are reported on herein.

4. The Committee appointed three subcommittees:

Subcommittee 1, under the chairmanship of Mr. E. Perez-Cisneros (Cuba), on the budget for the second financial year;

Subcommittee 2, under the chairmanship of Dr. P. R. Viljoen (Union of South Africa), on the scale of contributions;

Subcommittee 3, under the chairmanship of Mr. J. V. Thygesen (Denmark), on the proposed establishment of a separate committee on financial control.

5. With the aid of reports submitted by the subcommittees the Committee considered each of the items on its agenda, and its conclusions are set out below.

Accounts of the Interim Commission

6. It was agreed that the audited accounts of the Interim Commission which had been circulated to member governments as a Conference paper needed no further consideration and that it should be recommended that the Conference accept them.

Budget for the First Financial Year

7. Since the Financial Regulations provide that the budget for the first financial year [see Appendix] "shall be reported to the next regular session of the Conference for its information" and no further action is required, it was agreed to recommend that the budget be received by the Conference.

Status of Contributions

8. The report of the Director-General on payment of contributions [see Appendix] was considered and it was noted with regret that the contributions of thirteen out of the forty-two member countries in respect of the first financial year remained unpaid. The Committee endorsed the action taken by the Director-General to secure payment and noted with approval the recommendation made by the Committee on Constitution and Organization that the Conference should adopt the amendment of the Constitution proposed as its First Session to provide for loss of voting rights in consequence of nonpayment of contributions.

Financial Arrangements for 1946-47

9. The Committee debated at length the financial administration of FAO and the arrangements to be adopted for the second and third financial years. It was agreed to submit a motion to strengthen the financial administration of the Organization for adoption by the Conference.

Beginning Date and Length of the Financial Year

10. It was unanimously agreed that in order to conform with the practice of the United Nations and to facilitate financial administration, the financial year of the Organization should be the calendar year instead of the year beginning 1 July. The Committee then considered what would be the most appropriate method of bringing about this change. After discussion of a proposal put forward by the delegation of the United States of America that the second financial year should be the period of six months ending 31 December 1946 and the third financial year should begin on 1 January 1947, the Committee agreed by a majority vote to support the recommendation made by the Executive Committee that the second financial year should be the period of eighteen months extending from 1 July 1946 to 31 December 1947. It was further agreed that consideration of the accounts for the first financial year should be deferred until the Third Session of the Conference, subject to certain provisions relating to accounting periods and the form of the third annual budget, which are included in the resolutions submitted by the Committee for adoption by the Conference.

Contributions for the Second Financial Year

11. In the light of the report of the appropriate subcommittee, the Committee considered the provisional scale of contributions proposed for the second financial year by the First Session of the Conference, together with the request received from the Government of India for a reduction of the Indian Contribution, and certain representations made by the Irish member of the Committee on behalf of the newly admitted member countries. In accordance with the advice of the subcommittee it was agreed to recommend to the Conference that, subject to the reduction of the Indian contribution from a figure representing 4.67 percent of the budget to a figure representing 4.25 percent as in the first financial year, contributions for the second financial year should be in accordance with the scale set by the First Session of the Conference, each individual contribution as set out in that scale being increased by 50 percent to correspond with the extension of the financial year. The Committee pointed out that the matter of the Indian contribution was a special case as the Indian Government had made formal application for a reduction, but that the action taken should not create a precedent. The Committee also agreed that with regard to the contributions of new members, the basis be accepted as fixed for the second financial year with the clear understanding that it will be reviewed when general revision of the scale of contributions takes place.

12. The Committee wished it to be understood that the contributions proposed for the current year were entirely without prejudice to the scale to be fixed for the third financial year, which should be. based on a general revision in the light of the proposals under consideration by the United Nations. When the new scale of the United Nations is available it should be examined by the Executive Committee acting as the Committee on Financial Control with the object of submitting proposals for revision of the FAO scale to the next regular session of the Conference.

Second Annual Budget

13. The provisional budget for the second financial year of eighteen months was examined in detail and amended in certain respects by the appropriate subcommittee, which submitted a full report to the Committee. The Committee agreed with the conclusions of the subcommittee as set out in its report and accordingly recommended to the Conference that those conclusions be endorsed and in particular that a resolution on the budget, submitted to the Conference, be adopted.

Committee on Financial Control

14. The Committee had before it a proposal submitted by the United Kingdom Delegation that, in view of the growing complexity of the financial business of FAO and the consequent need for specialized advice on financial matters, the Financial Regulations should be amended to provide for separation of the Committee on Financial Control from the Executive Committee. The Committee referred this proposal to the subcommittee set up for the purpose, which reported that the proposal was not practicable without more substantial amendment of the Financial Regulations than could be adequately considered in the time available to the Conference and accordingly recommended that three new paragraphs, based on proposals submitted by the United States Delegation, should be added to Regulation I of the Financial Regulations.

15. The United Kingdom member made the reservations that he considered the proposal made by his Delegation to be preferable and that he did not agree that it involved substantial amendments of the Financial Regulations. The Committee agreed to endorse the recommendations of the subcommittee on the understanding that the proposed amendment of the Financial Regulations should be subject to review at the next regular session of the Conference in the light of experience and of a report to be submitted by the Executive Committee on the working of the Financial Regulations and the functions that can most appropriately be performed by the Executive Committee and the Committee on Financial Control respectively.

Executive Committee Allowances

16. The Committee also considered the recommendation of the Committee on Constitution and Organization that the Rules of Procedure should be amended to provide that the emoluments or allowances of members of the Executive Committee should be at rates approved by the Conference. The Committee concurred with this recommendation and decided on the advice of the subcommittee on the budget to recommend that, in accordance with the rule already made by the Executive Committee, its members should be entitled to payment of the cost of first-class travel by direct route to the place of meeting, per diem allowance of 10 U. S. dollars while en route, and per diem allowance of 20 U. S. dollars after arrival in the country where the meeting takes place.

Debts of CIB and CIS

17. The Committee considered a recommendation of the Forestry Committee of Commission A that FAO should assume the debts of CIB, together with the question of the debts of CIS referred to the Finance Committee by the Committee on Constitution and Organization. In accordance with the conclusions of the subcommittee on the budget, to which these questions were referred, the Committee decided that it would not be justified in recommending inclusion in the budget of provision for meeting the debts of either organization without fuller information than was made available to the Committee.

Regional Offices, UNRRA Services, and Preparatory Commission

18. The Committee took note of the conclusions reached by the Constitution and Organization Committee on the establishment of regional offices and the continuance by FAO of agricultural advisory services hitherto provided by UNRRA in Greece. The Committee also thought it advisable to ask the Director-General, after consultation with Commission a (World Food Policy), to advise the Finance Committee whether he would find it necessary to submit any supplementary estimates to cover the cost of the proposed Preparatory Commission on World Food Proposals and subsequent preparatory activities arising out of its report. In the light of the Director-General's views the Committee came to the conclusion that adequate provision for all these purposes already existed in the appropriate chapters of the budget, including Chapter VII.

C. Annex to Report of Commission B

Report of Budget Subcommittee

1. Following the decision of the Committee on Finance to recommend to the Conference the adoption of a second financial year of eighteen months, extending from 1 July 1946 to 31 December 1947, the Subcommittee on the Budget has examined in pursuance of the Committee's instructions the provisional budget attached to the paper Con 2/Fin 2 circulated to member governments by the Director-General.

2. Whilst recognizing the inevitable difficulties of framing a satisfactory budget at this stage in the development of FAO, the Subcommittee feels obliged to express the hope that every effort will be made in preparing the budget for the third financial year to achieve close conformity with the provisions of Regulation III of Part I of the Financial Regulations relative to the form of the annual budget.

3. The Subcommittee has come to the conclusion that, subject to certain amendments suggested below, the provisional budget circulated by the Director-General represents, notwithstanding its formal defects, an adequate basis for determination of the receipts and expenditures of the Organization to be approved for the second financial year.

4. The Subcommittee considers that the total budget should be the sum of $7,500,000 as proposed by the Director-General, including provision for any new members that may be admitted to the Organization in the course of the financial year, more especially from amongst countries that were members of the Interim Commission but have not yet accepted the Constitution of FAO

5. In order to arrive at the net revenue to be expected, there falls to be deducted from the total budget of $7,500,000 the sum of $1,206,000 made up of (a) one and a half times the sum of $542,500 allocated by the First Session of the Conference for contributions in respect of a second financial year of twelve months from members of the Interim Commission not yet members of FAO; (b) one and a half times the sum of $240,500 similarly allocated for contributions from other new members, and (c) the sum of $31,500 being the difference between the contribution of India at the rate of 4.67 percent of the total budget as proposed by the First Session of the Conference and a contribution at the rate of 4.25 percent as recommended by the Finance Committee. These deductions are offset by the addition of (a) the sum of $438,000 representing one and a half times the contributions of new members admitted at this session as assessed by the Conference for a financial year of twelve months; (b) the sum of $30,000 representing interest on the sum of approximately $1,000,000 to be transferred to the working capital fund as from the end of the first financial year, and (c) $20,000 to be expected from the sale of publications. The net revenue thus arrived at amounts to $6,782,000.

6. In considering the allocation of this revenue to expenditures as proposed by the Director-General in the provisional budget the Subcommittee has come to the conclusion that certain amendments are desirable in the provision made under Chapter I for the Conference, committees and technical conferences. The first subhead should be entitled "Sessions of the Conference" since provision must be included for the possibility of an extraordinary session being held in addition to the two regular sessions falling within the financial year. To provide for this possibility the Subcommittee thinks that the estimate should be increased from $300,000 to $350,000.

7. The Subcommittee sees no reason to amend the estimate of $120,000 for meetings of the Executive Committee. It concurs however with the view of the Committee on Constitution and Organization that an amendment should be made to the Rules of Procedure to provide that the emoluments or allowances of members of the Executive Committee should be at rates approved by the Conference. The Subcommittee recommends that, in accordance with the rule already made by the Executive Committee, its members should be entitled to payment of the cost of first-class travel by direct route to the place of meeting, per diem allowance of 10 U. S. dollars while en route, and per diem allowance of 20 U. S. dollars after arrival in the country where the meeting takes place.

8. It is recommended that the estimate for meetings of ad hoc committees should be reduced from $90,000 to $60,000, which represents double the provision made for the first financial year of eight and a half months and is considered adequate in view of the establishment of standing advisory committees, which should reduce the need for ad hoc committees.

9. The Subcommittee considers that the estimate for technical conferences should be reduced from $150,000 to $100,000 since, notwithstanding the recognized value of such conferences, they especially represent a form of activity the extent of which may reasonably be governed by the financial resources available.

10. Under Chapter II the Subcommittee has no amendments to propose, but wishes to express the hope that when any future mission is under consideration an estimate of its probable cost will be made at the earliest possible stage.

11. The Subcommittee desires to propose no amendments under Chapter III but wishes to put on record its opinion that, in view of the vital importance of creating with all possible speed administrative machinery adequate for the work of the Organization and in particular satisfactory translation and interpretation services, the Director-General should not hesitate to make transfers from other subheads, and in particular the subhead for secretarial, clerical, and custodial staff, to the subhead for administration. Further transfers amongst the subheads of this Chapter may prove necessary, especially for the benefit of the statistical work of the Organization, which is clearly of fundamental importance.

12. The Subcommittee recognizes that the provision made for the payment of taxes to which members of the staff of FAO are liable under their national laws in respect of their official salaries is unavoidable in present circumstances, but hopes that at the earliest possible date alternative arrangements will be made which will render such provision unnecessary.

13. The Subcommittee sees no reason to amend the estimate of $150,000 for the salaries of staff temporarily employed by FAO for transitional periods during which the functions of the organizations by which the staff were previously employed are in process of being taken over by FAO. It considers however that such transitional periods should not be unduly prolonged and that decisions should be taken as early as possible on the functions to be continued or discontinued and the staff to be taken into permanent employment or discharged in consequence.

14. The Subcommittee has no comments to make on Chapter IV relating to official travel and removal expenses.

15. The Subcommittee recommends that in accordance with the proposal of the Director-General the estimate made in Chapter V should be increased from $171,300 to $342,600 in order to provide for the possibility of the staff of the Organization becoming participants in the proposed permanent pension scheme of the United Nations, which is understood to provide for contributions from the employing organizations at the rate of 15 percent of salary. This recommendation, however, must not be taken to imply any opinion as to the rate of contributions or the general suitability of the proposed scheme for application to the staff of FAO.

16. The only amendment that the Subcommittee wishes to make in the estimates included under Chapter VI is in the subhead for printing and duplicating, which should be increased from $187,500 to $210,000 to allow for the cost of printing and publishing material resulting from work now in progress at the International Institute of Agriculture. The Subcommittee understands that the estimate of $60,000 for miscellaneous operational expenses covers sundry expenses not itemized above, including operational expenses of organizations in process of absorption by FAO.

17. The Subcommittee has given careful consideration to the provision made in Chapter VII for contingencies and has come to the conclusion that the figure of $350,000 should be retained. Whilst being opposed in principle to a provision for contingencies representing so large a proportion of the total budget, the Committee recognizes that at this stage in the development of FAO provision must be made for certain activities or liabilities which must almost certainly be assumed but whose cost cannot be estimated with any degree of precision when the budget is framed. Such activities and liabilities include the possible provision of supplementary allowances to staff as forecast by the Director-General in the explanatory notes on the original draft budget for the second financial year, the initial cost of regional offices, the operating cost of the proposed Preparatory Commission to be appointed to examine the proposals for a world food board, and the assumption by FAO, as recommended by Commission A with the concurrence of the Committee on Constitution and Organization, of certain of the technical advisory functions of UNRRA. Since, in view of the conclusion of the Committee on Constitution and Organization on the subject of regional offices it seems unlikely that any large proportion of the $250,000 included in the total figure to provide for regional offices will in fact be required, the Subcommittee thinks that the estimate of $350,000 should be sufficient for all these purposes.

18. Finally the Subcommittee considered the recommendations of the Forestry Committee on Commission A that FAO should assume the debts of CIB, together with the question of the debts of CIS referred to the Finance Committee by the Committee on Constitution and Organization. The Subcommittee has come to the conclusion that it would not be justified in recommending inclusion in the bud get of provision for meeting the debts of either organization without fuller information than is at present available.

19. In consequence of the amendments suggested above the sum available for transfer to the working capital fund stands at $557,400.


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