28. The Council considered the program of work of the Fisheries Division as outlined in Program Activities: Fisheries Division (CL 43/8) in the context of the resources and budget available to the Organization and to the Fisheries Division in the 1964–65 biennium. The Council had the benefit of the Program Committee's comments on these activities.
29. The Council expressed satisfaction with the program activities report and the work of the Fisheries Division and commended especially the activities concerned with inland fisheries, statistics, the collection and dissemination of scientific information and associated bibliographic work, and the initiatives taken concerning consultation and co-operation with other international and intergovernmental bodies.
30. The Council took into account the wide subject matter coverage of the Fisheries Division and noted with satisfaction the close collaboration with other Divisions, particularly the Nutrition Division in the Technical Department and the Rural Institutions and Services Division and others in the Department of Economic and Social Affairs.
31. Among matters noted as being pursued but with inadequate resources were stock assessment and the development of methods for such assessment; data collection; support to dependent regional bodies; co-ordination of fisheries work between regions; harvesting methods, including production and processing technology with related economic studies; and pollution of waters.
32. The Council felt that FAO and its Fisheries Division had a special role, a leadership role, in promoting and facilitating the co-ordination of international programs of high seas fisheries research in related biological and oceanographic fields as they concern the harvesting of the living resources of the sea. In this connection the close working arrangements with the Inter-Governmental Oceanographic Commission in Unesco were particularly commended. FAO's leadership was also important in its contribution to the study of population dynamics which had become an important issue in international fisheries throughout the world.
33. The Division was urged to keep abreast of technical advances in the development of new fish products through upgrading a certain proportion of the production now destined for animal feeding stuffs and in order to make better use of under-fished resources. The Council was informed that the objective was to promote the manufacture on a commercial scale of fish protein concentrates suitable for human consumption at an economic price and to make them available where most needed for nutritional improvements. In this connection, the importance of consumer education and acceptance studies was emphasized.
34. The Council recognized the heavy burden of field project supervision under United Nations Special Fund and Expanded Program of Technical Assistance projects, and noted that some staff increases financed from agency costs had been made or were planned. Many Members emphasized that the Division's main effort should be directed toward assistance to developing nations. It was also recognized, however, that the resources of the sea were for all mankind and that international order in the rational exploitation of the natural resources of the sea was a matter which concerned developing and developed nations alike. In pursuing this aim, FAO should continue to collaborate with, and encourage the activities of, existing specialized national and international institutions with competence in this field.
35. The Council considered that document CL 43/92 provided a clear panorama of FAO's activities in the forestry and forest products fields.
36. It regarded these activities as having particular importance at the present time. They were aimed mainly at creating growth points of industrial development in developing nations, permitting a broadening of the base of the economy away from a limited range of agricultural products and offering prospects for improving export trade, in keeping with the policies outlined by the United Nations Conference on Trade and Development.
2 Program activities: Forestry and Forest Products Division
37. As such, these activities deserved support and strengthening. Particularly, the Council felt that the Director-General should consider how the Division's regular program might be strengthened to enable greater attention to be given to problems of logging and transportation and hence the orderly development of forest resources; and secondly, to the promotion of markets and trade, especially markets in the developed nations for more forest products from the developing nations.
38. Certain directions in which the work of the Forestry and Forest Products Division should expand were also suggested in the report of the Program Committee (CL 43/41 paragraphs 81 – 84): the Council commended these proposals to the Director-General for consideration, particularly the increase of emphasis within the Division's program on techniques and problems of plantation forestry, and on quick-growing species. While Member Nations must continue to devote effort to the planned use of natural forests, man-made forests tended to provide much greater production per unit of area and were of course more easily managed. In this connection, the Council supported, as offering possibilities of particular value to the developing countries, the Division's proposal to get an international tree seed center project under way.
39. There was discernible everywhere a marked flow of new ideas on forest policy and forest management. The Division must keep abreast of and indeed contribute to this new thinking. More effort devoted to this end would close a gap that existed in the Division's regular program.
40. The Council agreed also with its Program Committee's view, expressed in its report, that greater prominence to integrated land-use planning should be given by the Organization as a whole. In colonization and land settlement schemes of many Member Nations, and not only the so-called savanna countries, forests still tended to be neglected factors. They should be regarded as essential features of the national heritage. It is often appropriate that forestry should receive an increased share of development resources and of land resources. Agricultural improvement should concentrate on the more intensive use of good agricultural land.
41. Several Members of the Council felt that the Division would be increasingly called on for advice on problems of forestry in relation to community development, urbanization and recreation: there seemed likely to be increasing pressure for recreational use of forest areas. This should be kept in mind in framing the balance of future work programs.
42. The Council agreed that FAO, through the work of the Division, was now recognized as the world center for forestry and forest products. It noted, as a measure of the interest of Member Governments, that the volume of United Nations Special Fund activities in forestry and forest products entrusted to FAO was the second highest among any of the fields of competence of the Organization.
43. To attain this leading position the Forestry and Forest Products Division had not depended on any exceptional allocation of funds. Several Members of the Council called attention to paragraph 79 of the Program Committee's Report (CL 43/41) which drew attention to the concern expressed by the Twelfth Session of the Conference at the slow rate of expansion over recent budget periods of the Division's Regular Program relative to the expansion in other sectors of the Organization.
44. The Council noted with approval the main lines of the program of work of the Nutrition Division and expressed satisfaction with its achievements to date. The wide sweep of activities carried out by the Division was appreciated and the crucial importance of close co-operation with other units of FAO and relevant units of other organizations in achieving its objectives was emphasized.
45. With regard to co-operation with the World Health Organization (WHO), the Council was informed that the existing arrangements, particularly the Joint FAO/WHO Expert Committee on Nutrition, had proved satisfactory. The two Directors-General were keeping them under constant review in order to keep up with the needs of their expanding programs in the general field of human nutrition. The Council was also informed that co-operation with the United Nations Children's Fund (UNICEF) was satisfactory and that the FAO/UNICEF Joint Policy Committee was playing a very useful role in relation to FAO's nutrition work. The Council stressed the importance of developing satisfactory relationships with other international organizations, notably the United Nations, the International Labour Organization, and Unesco, in relevant aspects of their work.
46. The Council recognized that co-operation with other units of FAO was equally important. It was suggested that the close links already established with the Statistics Division should be strengthened, especially in relation to the promotion of food consumption surveys. The Council agreed with its Program Committee's view that this program was of great value, since it would provide an essential basis for sound food planning at the national level and also for assessing the world food and nutrition situation. The need for increased co-operation with other Divisions in the field of food processing was also stressed.
47. The potential benefits of co-operation with other national and international bodies outside the United Nations family, were also fully recognized. The Council was happy to be informed of several avenues of such co-operation, which have already been developed, e.g. regional food composition tables for Latin America and Africa with the U.S. Interdepartmental Committee on Nutrition for National Defense.
48. The Council recognized the importance of the Food Consumption and Planning Branch and suggested that the Director-General consider the possibility of strengthening it in the development of future programs of work and budget. It was noted that the Branch would be called upon to carry out increasingly important activities in relation to the Indicative World Plan for Agricultural Development and the current emphasis in FAO on planning for development. The Council agreed with its Program Committee that the question of nutrition in agricultural planning is important and, therefore, approved its proposal that the subject be discussed at the Thirteenth Session of the Conference.
49. The question of the relative emphasis placed on different activities in relation to the need for a well balanced program for the Division was reviewed. With regard to the Program Committee's suggestion that the Director-General examine further the question of possible duplication of work between the Applied Nutrition and the Food Consumption and Planning Branches, the Council was informed that a further review of the matter had confirmed the absence of any such duplication.
50. The Council emphasized the importance of training national personnel at different levels for carrying out effective programs in nutrition, food technology and home economics, especially in the developing countries. The importance of including nutrition instruction in school and workers feeding programs was stressed. While this was largely a matter for national governments, the role of FAO, in co-operation with other interested organizations was recognized as important in establishing appropriate facilities for such training at the national, regional and international levels.
51. The need for greater attention to the activities of the Food Science and Technology Branch was pointed out and it was suggested that the name of the Division be revised to reflect this point of view. The Council felt that this suggestion was worthy of further consideration and requested the Director-General to report on it to the Thirteenth Session of the Conference. The question whether the work of the proposed Advisory Panel on Food Science, Technology and Industries could be carried out through the already existing bodies was considered and the Council was informed that such a Panel was necessary to enable FAO to carry out its work effectively and that its members, divided into working groups, would be consulted mostly by correspondence. It was noted that the Panel would give prior attention to the production, marketing and promotion of consumption of protein-rich foods of a nonconventional nature. The need to intensify work on the reduction of wastage by proper storage and processing was also emphasized.
52. The need for encouraging fundamental and applied research in various aspects of the Division's work was fully recognized. The Council was gratified to note that the Division's work had stimulated considerable private support, such as that of the Rockefeller Foundation for research on protein-rich foods carried out through the U.S. Committee on protein Malnutrition and in co-operation with FAO, WHO and UNICEF. The Council agreed with its Program Committee that the Division should continue to stimulate such activities. The need to ensure the nutritive value in the development of new plant varieties was mentioned as an example of such work to be carried out by the Division in close co-operation with Plant Production and Protection Division.
53. The Council recognized the importance of the proper evaluation of various activities related to the work of the Division at all stages and, therefore, commended the efforts being made to develop appropriate methods for evaluation in co-operation with WHO. Such a study would be extremely useful in evaluating the results of projects designed to improve the nutrition of population groups.
54. The Council noted with interest that FAO was the only agency of the United Nations family that had home economists on its staff and, therefore, was in a special position to promote higher standards of living through home economics programs primarily for women. Since family well-being is largely the responsibility of women, such programs play an important part in economic and social development. The Council, therefore, commended the work of the Home Economics Branch, especially in the training of home economists for work in the developing nations.
55. It was noted that the Division's publications not only reflected its work but also greatly assisted it. Special appreciation was expressed for the regular issuance of the Nutrition Newsletter as recommended by the FAO Conference, for the use of national and international personnel concerned with nutrition in its different aspects, as well as for the Guide for the Use of experts.
56. The Council had before it a report (document CL 43/11)3 summarizing the discussions held and decisions taken at the Spring and Summer sessions of the Administrative Committee on Co-ordination (ACC) and at the Thirty-Seventh Session of the Economic and Social Council of the United Nations (ECOSOC) held in Geneva in July/August 1964.
3 Matters arising out of ACC and ECOSOC discussion, 1964.
57. The resolutions of common interest to the United Nations family of organizations and, in particular to FAO, related to a wide range of subjects in the technical, economic, social and human rights fields in which the Organization has a vital role to play in close co-operation with the United Nations and the other specialized agencies.
58. The Council noted the views expressed by the Director-General on a number of important issues on which further action was proposed. The following were some of the points that emerged in the discussion:
Should the ECOSOC Advisory Committee on Science and Technology decide to act as the Advisory Committee on Unesco's programs in this field, the other United Nations agencies should have equal right to call on that Committee to discharge a similar function
The study requested by ACC of a uniform layout for the presentation of the Budgets of the specialized agencies was important: difficulties were involved and FAO needed to comply with the directives given by its executive organs in regard to its biennial Budget presentation; however a common skeleton presentation of the various Budgets of the United Nations family was already used at the meetings of the Advisory Committee on Administrative and Budgetary Questions.
Action which might be taken in connection with a world campaign against hunger, disease and ignorance should not be allowed to affect adversely the momentum created by the Freedom from Hunger Campaign.
FAO activities in the field of agricultural industries should be recognized and co-ordinated with any new arrangements relating to over-all industrial development.
The Council also agreed with the reservation of the Director-General about the establishment of a special United Nations Disaster Fund to be financed from voluntary contributions.
59. The Council took note of the progress report on the activities of the Organization under the Expanded Program of Technical Assistance and the United Nations Special Fund (CL 43/12), and expressed its appreciation of the progress made and the results achieved under both programs. It noted the steady increase during the last few years in the Organization's work under the Expanded Program and the much sharper increase in the number of United Nations Special Fund projects for which the Organization was executing agency.
60. The Council endorsed the recommendations made by its Program Committee at its Eighth Session in May/June 1964 regarding the most suitable and effective way of reporting on the Organization's activities under EPTA and UNSF (CL 43/41).4
61. The Council recognized that improved reporting in this respect had two aspects. The reports to the Council and the Conference should include general information on progress made with regard to projects still in operation and an evaluation of concluded projects. On the other hand, there would be a need for separate reporting for public information purposes, with a view to making the public at large more aware of the Organization's technical assistance work and to stimulating greater interest in such activities in both the developed and the developing nations.
62. The Council realized that an evaluation of the impact of projects on the economic and social development of beneficiary nations might prove to be a very difficult task, particularly since the United Nations technical assistance activities often were only a small part of the over-all national development programs and of the total amount of foreign aid received. The Council also noted that both the Technical Assistance Board (TAB) and the Technical Assistance Committee (TAC) were each proposing to conduct evaluations of EPTA operations in six countries in the near future. This being so the Council felt that the FAO evaluations might be delayed until the results of the TAB and TAC efforts were available, with the understanding, of course, that FAO would co-operate fully on the TAB evaluations and, where requested, in those of TAC. FAO would also analyze its own views in the matter.
63. Having regard to the Organization's large share in the United Nations technical assistance programs, the Council also felt that the Conference should pay more attention to review of the technical and economic aspects of FAO's field work. It requested the Director-General to take this into account in his proposals for the preparation of the provisional agenda of the Thirteenth Session of the Conference which would be considered by the Forty-Fourth Session of the Council (June 1965).
64. In this connection, the Council also recommended that the Conference discuss the co-operation between and the co-ordination of multilateral and bilateral aid programs. The Council was fully aware of the steps which a number of governments and the Director-General had already taken to this end, and of the consultations that had taken place and the co-operation that had emerged with a number of governments and governmental services. It felt, however, that a full review by the Conference could result in further improvements, if governments were to study the matter and be prepared to put forward practical proposals.
65. The Council noted with satisfaction the proposals of the United Nations Economic and Social Council, (Resolution 1020 (XXXVI)) regarding the proposed merger of the EPTA and UNSF programs into one program to be known as the United Nations Development Program (UNDP).
66. The Director-General presented document CL 43/13 on the Agreement between FAO and the International Bank for Reconstruction and Development. Work carried out under the Agreement since the signature on an interim basis of the Memorandum of Understanding was described: 25 missions had been initiated or planned for the period from April to the end of December.
67. The representative of the International Bank read to the Council a message from its President, Mr. George Woods, which referred to the statement that he had made at the 1963 meeting of the Boards of Governors of the International Bank and the International Development Association (IDA) when he had stressed that the International Bank should do much more to help agriculture, and should intensify its support of agriculture on a much broader front. In the message Mr. George Woods said that it was with this in mind that the partnership with FAO in establishing a co-operative program had been entered into; that the partnership would strengthen the approach and prove of advantage to both organizations; and that the ultimate test would be the benefits that the developing member countries would derive from it, it being understood these could be evaluated only in the course of time, perhaps in a decade or more. The representative of the International Bank stressed that the team approach was essential, since it was necessary for the experts to work together continuously in an interdisciplinary manner. He considered that the start had been so rapid that the level of activity was likely to be higher than that envisaged. If the momentum was maintained, which seemed quite probable, he felt confident that the International Bank would be prepared to consider sympathetically a review of the present financial ceiling which would become necessary.
68. The Council approved the Agreement and accordingly adopted the following resolution:
Resolution No. 1/43
AGREEMENT BETWEEN THE INTERNATIONAL BANK AND FAO
THE COUNCIL
Taking note of the Director-General's statement concerning the Agreement between FAO and the International Bank for Reconstruction and Development and the International Development Association,
Taking note also of the comments of the Program and Finance Committees in the Joint Report of those Committees (CL 43/41),
Approves, in accordance with the provisions of Rule XXIV-4 (c) of the General Rules of the Organization, the Agreement between the Food and Agriculture Organization and the International Bank for Reconstruction and Development and the International Development Association (IDA) as expressed in the Memorandum of Understanding signed by the President of the International Bank/IDA on 30 March 1964, and by the Director-General of FAO on 2 April 1964, the text of which is given as Appendix C to this Report.
69. The Council considered that the Agreement provided an opportunity for the two Organizations to fulfil more effectively their essential functions within the United Nations family, FAO being the agency having specific responsibility for the technical, economic and institutiona aspects of agricultural development, and the International Bank/IDA being the agency primarily responsible for financing economic development. The hope was expressed that the Agreement would result in an effective contribution being made to the United Nations Development Decade, that it would speed up and enlarge the volume of investment by the International Bank in agricultural projects which had to be seen in their wider context and not in isolation.
70. With this agreement it was now possible for FAO studies to be taken to the stage of actual implementation, for the process of development involved techniques, technical knowledge, management and the availability of resources. In the past, a shortage of financial resources had prevented FAO from carrying its advisory assistance through sufficiently far and the hope was that action under the Agreement would fill a serious gap.
71. In the discussion on the Agreement, questions were raised regarding the principle of cost-sharing. It was pointed out that the Agreement provided for the principle of cost-sharing to be applied only up to a ceiling figure which would be fixed from time to time by agreement between the two Organizations. Several Members of the Council felt that the cost-sharing arrangements made were inconsistent with the principle that work carried out by FAO for other bodies should be fully reimbursed and considered that the arrangement should be reviewed at an early date. However, other Members emphasized that the program was one designed to assist the work of FAO and the Bank by the pooling of resources and expertise, and that this should not be compared to a program conducted on behalf of another organization. The Members of the Council noted with satisfaction that the Director-General had, as requested by the Joint Session of the Program and Finance Committees, carefully reviewed the organizational structure and ensured that senior full-time subject-matter professionals assigned to the team formed part of their subject-matter Divisions, while they naturally worked out their assignments and reported on them and general policy matters to the team leader located in the Program and Budgetary Service. The Council agreed that these staffing and financial arrangements should be reviewed by the Program Committee and Finance Committee after sufficient further experience had been gained.
72. In the discussion on the procedures relating to the signature on an interim basis of the Memorandum of Understanding, it was noted that the Director-General of FAO and the President of the International Bank/IDA had both signed the Memorandum on an interim or conditional basis with a proviso that the continuation thereof would be subject to the approval of the Boards of Governors of the International Bank and IDA and of the FAO Council, and that the Director-General had made financial arrangements for this partnership. Since the Memorandum of Understanding had been signed and had become operative, the President of the Bank had obtained approval first from the Executive Directors permanently located in the Bank and secondly from the Boards of Governors by mail vote as provided for in the Bank/IDA procedures. Some Members of the Council, while approving the substance of this Agreement, expressed uneasiness that the Agreement had been implemented without the prior approval of the Council. In this regard, the Director-General pointed out that the Council and the Conference had the responsibility of approving or rejecting any continuing Agreement. Several Members emphasized that given the nature of the Agreement and the urgency of the situation, the Director-General had to be congratulated on his initiative which was designed for the benefit of the Member Nations. The Council requested the Committee on Constitutional and Legal Matters to examine the possibility of introducing procedures which could be applied in the event of urgent issues of this kind arising in the future between Council sessions.
73. The Council considered the proposed Agreement set out in document CL 43/6 and adopted the following resolution:
Resolution No. 2/43
AGREEMENT BETWEEN THE FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS AND THE INTER-GOVERNMENTAL MARITIME CONSULTATIVE ORGANIZATION
THE COUNCIL
Considering the desirability of establishing close co-operation between the Food and Agriculture Organization of the United Nations (FAO) and the Inter-Governmental Maritime Consultative Organization (IMCO), and
Having examined the terms of the proposed Agreement between FAO and IMCO, which was negotiated between the Director-General of FAO and the Secretary-General of IMCO to achieve the above purpose,
Approves the Agreement with IMCO, as set out in Appendix D to the present Report, subject to confirmation by the Conference.
74. The Council had before it a note by the Director-General (CL 43/14) and also heard a statement on behalf of the Director-General on the subject of the 1970 World Census of Agriculture. Acting upon Resolution No. 20/63 of the Twelfth Session of the Conference, the Council appointed a Working Party on the Agricultural Census composed of the following member countries: Brazil, Canada, Chile, Colombia, Ethiopia, France, Federal Republic of Germany, India, Japan, Netherlands, Nigeria, Pakistan, Senegal, Spain, United Arab Republic, United Kingdom, United States of America.
75. The Working Party's terms of reference would be to advise the Director-General on the creation of a Census Fund by means of which it would be possible to give financial aid to such nations as required it in order to carry out agricultural censuses and in particular to advise him:
as to the article of the Constitution under which the Fund could be established; and
on the organization and administration of the fund and, specifically, on the procedure for estimating census costs in cash and kind, and for assessing the contributions of the nations willing to join the Fund.
76. The Campaign Co-ordinator reported that the Thirty-Seventh Session of the Economic and Social Council of the United Nations (ECOSOC) had reaffirmed support for the Freedom from Hunger Campaign (FFHC) in Resolution 1039 which recognized the magnitude and long-term nature of the tasks undertaken by FFHC and called on all participants in the Campaign to intensify their efforts against hunger. ECOSOC had reached no conclusion on the proposed five-year campaign against hunger, disease and ignorance, United Nations General Assembly Resolution 1943 (XVIII) of 11 December 1963, and the matter had been referred back to the Secretary-General of the United Nations for further study.
77. The Council took note of the satisfactory progress of the Campaign.
78. The Director-General drew the attention of the Council to CL 43/15 5 Annex III, which showed a total reported commitment to FFHC actions of $221 million. Within this sum FAO's actions amounted to $18.6 million, of which $7.4 million had been made available by Campaign partners through FAO, and $11.2 million was being provided by nations as counterpart funds. The Unesco Gift Coupon Scheme was being increasingly used as an educational mechanism for small Campaign actions.
79. The Council had before it its Report of the Committee-of-the-Whole (CL 43/16). In commenting on the Report, the Director-General welcomed the recommendation that the Campaign should be extended to 1970 and also the recommendation that central campaign costs should be included in the Regular Budget. In the latter connection, however, he expressed the hope that this would not preclude him from seeking voluntary contributions for special purposes.
80. In the course of the discussion a number of representatives of developing nations, Members of the Council, gave examples of the work being done by their national FFHC committees and stressed the importance of this work in the context of their national plans for development. National FFHC Committees had proved an invaluable reinforcement for the normal government services in rural areas, particularly in the field of agricultural instruction.
81. Representatives of developed nations, Members of the Council, also paid tribute to the achievements of the Campaign in arousing public opinion which had already led to increased support for action against hunger. A number of Council Members spoke of plans made for broadening membership of their national FFHC committees in order to involve all sections of society, and of some adaptation of present committee structures to enable long-term planning to be undertaken. It was repeatedly stressed that strong and effective national FFHC committees were essential to ensure the continued and increasing success of Campaign action. There was general agreement that the Campaign was steadily gaining momentum and that there was wide scope for new achievements which would complement FAO's regular program.
82. Members of the Council repeatedly referred to the importance of the people-to-people links which were being established through the Campaign. Such links were invaluable in building up widespread understanding of the problems of hunger and in encouraging increasing international co-operation for their solution.
83. The plans for the Second World Freedom from Hunger Week in October 1965 and for the Young World Mobilization Appeal from October 1965 to March 1966 were noted. It was agreed that the increasing involvement of young people in the fight against hunger was of the greatest importance for the long-term solution of the problem and that statements of active support already received were very encouraging.
5 Report of the Director-General on progress of the Freedom from Hunger Campaign.
84. The Council approved the Report of its Committee-of-the-Whole on the future of the Freedom from Hunger Campaign (CL 43/16).
85. In particular, the Council endorsed the Committee-of-the-Whole's recommendation that the Campaign should be continued until the end of the United Nations Development Decade in 1970, though some Members of the Council felt that this was too short a period and that the Campaign should now be placed on a permanent basis, with provision for regular reviews of its program. The Council agreed that the question of the continuation of the Campaign should be reviewed before the end of 1970.
86. The proposal of the Committee-of-the-Whole that central Campaign costs should be included in the Regular Budget of the Organization was generally supported, provided the Director-General was free to seek voluntary contributions for special purposes. Some Members felt that it was undesirable to make the financing of the Campaign administration dependent upon governments.
87. Some Members considered that the provision by governments of funds for Campaign actions would discourage voluntary contributions from nongovernmental sources but it was pointed out by the Director-General that this was contrary to the experience in certain nations where governments had matched voluntary contributions and had thus further increased public enthusiasm and support.
88. The Council took note of the Director-General's statement describing recent developments in strengthening the Freedom from Hunger Campaign Fertilizer Program. The statement also referred to the growing interest of several countries in making substantial contributions in the form of fertilizers and/or technical experts.
89. The Council agreed with the report of the Joint Session of the Program and Finance Committee (CL 43/41), concerning the Fertilizer Program and approved the budgetary adjustments for the current biennium and the recommendation of the Program and Finance Committees to adjust the FAO service charge to 12 percent. However, while the Council fully recognized the importance of the Fertilizer Program and its fundamental role in agricultural development, it shared the concern of the two Committees regarding the attitude of the fertilizer industry which had lead to these budgetary adjustments.
90. The Council expressed its appreciation for the voluntary contributions made by some Member Nations to the Fertilizer Program and hoped other governments would find it possible to give similar support.
91. The Council gave full consideration to the points raised in Resolution No. 8/63 adopted by the Twelfth Session of the Conference. It had before it the Director-General's proposals prepared in response to this Resolution (Document CL 43/19)6 as well as the comments of the Eighth Session of the Program Committee on these proposals. Comments received from Member Nations in response to a circular letter from the Director-General outlining his proposals were also brought to the attention of the Council.
6 Role of FAO in world fishery development
92. The Council expressed its appreciation of the Director-General's presentation, commended him on the manner in which he had dealt with the subject and particularly on the full consultations he had undertaken. The Council agreed with the analysis presented by the Director-General and with the conclusion that both a substantial strengthening of the Organization's fishery activities and improved international machinery for consultation and co-operation in fisheries were necessary if the aims envisaged by the Conference in Resolution No. 8/63 were to be achieved. The Council felt that the great need for much fuller utilization of the potential of the world's waters for the supply of urgently required protein and the markedly international character of the problems involved called for special action by FAO.
93. The Council was unanimous in the view that one of the Organization's important functions was to give direct assistance to developing countries in fisheries. It also stressed, however, that it was an essential part of rational development to assess the resources, to determine what they could yield, and to ensure their rational exploitation in agreement with the accepted principles of conservation. The rapid adoption of modern improved methods of fishing and processing, coupled with an equally rapid extension of world-wide fishing activities, especially by developed countries, had created and continued to create situations in which important resources were in danger of being overexploited or even destroyed. Developing countries had a special interest in some of these resources. Reference was made in particular to the stocks of tuna in the Atlantic (see also paragraphs 122 to 126 of this Report), and to the Antarctic whale stocks which were in especially grave danger. The Council was informed of the initiative taken by some members of the International Whaling Commission urgently to promote long overdue effective action by that body. If such action were not taken, it was suggested that the Director-General might be asked to call an emergency Conference under Article VI.6 of the Constitution to consider this very serious matter.
94. It was against this background of concrete examples of international problems in fisheries that the Council in its consideration of Conference Resolution No. 8/63 paid special attention to FAO's constitutional responsibility in the field of co-ordination of international fishery work and the increasingly important role that the Organization should play in the rational use of aquatic resources in order to supply food needed for the world. The Council agreed with its Program Committee's emphasis on the crucial importance of ensuring international co-operation and consultation in fisheries on a world scale and noted the views of certain international agencies and governments in this matter, as expressed in consultations with the Director-General and also at the current session of the Council. In the discussions emphasis was placed on the need for making full use of existing organizations, in particular regional fisheries commissions and councils, and it was agreed that FAO's activities should supplement rather than supplant the work of such organizations. The Program Committee's view that FAO's primary role in this context should be in co-ordination and in the collection and examination of scientific evidence rather than in the administration of regulatory arrangements, which would normally be undertaken by special bodies established by the contracting nations for this specific purpose, was endorsed.
95. The Council was of the opinion that the desired ends in international collaboration in fisheries might best be achieved through the establishment of a permanent committee on fisheries, consisting of selected Member Nations, to deal with these matters and to advise the Conference and Council as well as the Director-General on the formulation, implementation and co-ordination of policy and on the Organization's program and activities in this field. The view was expressed that the members of such a committee should, as far as possible, be represented by their most senior officials responsible for fisheries, so as to enable the committee to deal adequately with its task. The Council requested the Director-General to consider how the Council's intentions could best be implemented and to put detailed proposals before its Forty-Fourth Session with a view to the establishment of such a committee.
96. In discussing Conference Resolution No. 8/63 the Council gave attention both to the desire expressed by the Conference that FAO, through its Fisheries Division, should have in future years the status of leading intergovernmental body in this field, as well as to the request in the last paragraph of the Resolution that the Council consider the status of the Fisheries Division in order to determine how the fisheries activities could be given full recognition in the Organization and among other international bodies that concern themselves with matters related to fisheries. A majority of delegations agreed with the view that the staff and financial resources of the FAO Fisheries Division were inadequate to its tasks and needed to be substantially increased. Many delegates considered that the status of the Division within the Organization should be elevated and some suggested that this might take the form of giving it the status of a Department. Other delegations, while recognizing the need for strengthening, thought that the Director-General should proceed cautiously and not aim at too drastic an expansion which might be beyond the limit set by the scarcity of qualified staff, as well as by what might be financially possible.
97. The Council was acquainted by the Director-General with his tentative plans in this regard, which in more detailed form would be presented as a supplement to his normal Program of Work and Budget. This would also show the development he envisaged over the next two or three biennia. The Director-General foresaw a reorganization of the present Fisheries Division into a Department of Fisheries and estimated that the necessary additional expenditure would amount to an increase of little more than $2 million over the current level - an increase which might be distributed over three biennia, i.e. at a rate of about $700,000 per biennium. Some Members expressed reservations regarding the scope of these plans and their financial implications.
98. The Council recognized that the organization and status of the fisheries activities must be considered in connection with the Program of Work and the structure of the Organization as a whole, and that a conclusion on this point could only be reached by the Council at its Forty-Fourth Session. It welcomed the Director-General's plans regarding the presentation of his proposals as giving an opportunity for thorough examination and for the exercise of the Council's judgement. In order to facilitate the work of its next session in this regard, the Council authorized and requested the Director-General to establish under Article VI.2 of the Constitution an Ad Hoc Committee on Conference Resolution No. 8/63 consisting of: Chile, France, Iran, Italy, Philippines, Senegal, United Kingdom, United States of America, and such other Member Nations as now were, or would, on 1 January 1965, be Members of the Council and that would have notified the Director-General of their wish to participate in the work of the Committee. The Committee would report and make recommendations to the Forty-Fourth Session of the Council with a view to assisting that session in taking action on Conference Resolution No. 8/63 in the light of the Director-General's proposals in this regard and the views expressed by Member Nations at the current session. Unless otherwise decided by the Forty-Fourth Session of the Council, the Committee would come to an end at that time.
99. The Chairman of the Program Committee informed the Council of the preliminary action taken by the Committee to study the regional structure of FAO. The Council noted that a detailed questionnaire for eliciting further information from the different regions had been prepared by the secretariat in consultation with some Members of the Program Committee, and that it would be issued very shortly after the other Members of the Committee attending this Council session had seen it. The questionnaire would also cover information concerning the working relationship between the Headquarters Divisions and the officers of the regional offices.
100. The Conference at its Twelfth Session considered the report of the Council on the impact of field programs on the Regular Program, including “an assessment of the time spent by the Headquarters' staff and other unidentifiable costs in connection with the formulation, evaluation and management of field projects” and “endorsed the recommendation of the Council that more realistic financial support from the extra-budgetary sources sponsoring the growing field programs be obtained in order to ensure adequate central management and servicing.” The Conference adopted Resolution No. 30/63 on the impact of field programs on the Regular Program and the desirability of a joint review of the problem by the organizations concerned.
101. The report of the Joint Session of the Program and Finance Committees in May/June 1964 (CL 43/41) expressed the concern of the two Committees about “the present unsatisfactory situation and the slow progress in obtaining higher and more adequate rates of reimbursement …”
102. The Director-General submitted to the Council, through the Finance Committee, the provisional findings of the latest (September 1964) survey on the impact of field programs on the Regular Program (CL 43/20)7 The new survey - the fifth of the series of similar surveys undertaken between 1953 and 1964 - confirmed once again the conclusions arrived at in previous survey reports, namely that the Regular Program was providing, over the years a decreasing percentage of FAO's increasing resources, but was still supporting nearly 80 percent of headquarters and regional office costs, while, on the other hand, headquarters and regional office staff were devoting a substantial and increasing proportion of their time to non-Regular Program matters.
7 Relationship of the field programs and the Regular Program
103. The Council was informed that the total amounts available to the Organization had more than quintupled since 1953, whereas the percentage of the Regular Program share in the over-all resources had progressively decreased to 29 percent in the 1964–65 biennium. The percentage of time spent by Headquarters and regional office staff on Regular Program matters has fallen to 50 percent in 1964, while the ratio of Regular Program support for the basic Headquarters and regional office costs had remained practically unchanged and amounted to 77 percent in 1964–65.
104. The Council noted, in particular, the extent to which the Regular Program continued to support the planning, management, and operation of special field programs, with clearly inadequate reimbursement of the cost of such support from the other programs, especially in the cases of the Expanded Program of Technical Assistance (EPTA) and the United Nations Special Fund (UNSF).
105. Preliminary analysis indicated that fully adequate subventions to the Organization's resources from EPTA and UNSF would be as follows, for the 1964–65 biennium:
for EPTA: $6,200,000 (as against the $2,500,000 at present available), and
for UNSF: $7,600,000 (as against the $4,628,000 in funds expected to be spent, or the $3,870,000 actually earned under the existing formula of the Special Fund).
106. These figures were based on the assumption that EPTA and UNSF would absorb the entire impact of all related activities on the headquarters staff without any absorption by the Regular Program establishment. However, even assuming that a certain degree of these activities would be assimilated within existing resources, there still remained an incontrovertible case for an upward revision of the current allocations from EPTA and UNSF.
107. The Council was again deeply concerned at the fact that despite the forceful expression of views by the Organization's legislative bodies, there had been no improvement in the situation over recent years. It agreed with the Finance Committee that the results of the recent survey indicated that a point had been reached where no further absorption of additional operational or field supervisory activities by headquarters staff was possible, and that, if the situation was not urgently remedied, the inevitable result would be a progressive slowing down, and attendant deficiency in execution, of both Regular Program and field activities. This might raise doubts about the Organization's ability to undertake further expansion of the special field programs.
108. The Council fully appreciated the important role which special field operations play in enhancing the effectiveness of the Organization's program and in assisting the developing Member Nations. It was therefore important that Member Nations should ensure that in the appropriate legislative bodies, both in FAO and in the sponsoring agencies of the field programs, a realistic and equitable balance was struck between the extent to which the Regular Program would support field programs, on the one hand, and on the other, the extent to which the total management and operational cost for such programs should be reimbursed by the sponsoring sources.
109. In this connection, the Council noted the Director-General's view, as endorsed by the Finance Committee, that as a partial and temporary remedial measure the reimbursement rate of both EPTA and UNSF should be at least 15 percent - i.e. 15 percent of the current biennial program of EPTA and 15 percent of the total field project costs under UNSF.
110. Since the results of the September survey were available for review only after the start of the Council session, some delegations stated that they were not yet in a position to formally endorse any specific percentage figure for reimbursement. The Council was unanimous, however, in fully endorsing the Director-General's efforts to secure as soon as possible a more adequate reimbursement rate for agency costs.
111. The Council noted that the problem was becoming more acute, especially as there were indications that the program under EPTA might increase to the extent of 15 percent, and the projects assigned under UNSF up to 25 percent, or more, during 1965 as compared with 1964.
112. The Council was informed that the Organization's views were being conveyed to the October Session of the United Nations Advisory Committee on Administrative and Budgetary Questions (ACABQ), which was bringing up to date the studies it made in 1957 on administrative and budgetary co-ordination and on the impact of outside programs on the Regular Programs of the specialized agencies. The Council again expressed the hope that in the light of the findings of the recent survey and the review of the situation which ACABQ was undertaking, the basis for a more realistic formula for reimbursement would be found.
113. The Council had before it document CL 43/218 which contains a comprehensive statement of all that had been done by the Program Committee, in consultation with the Council and the Director-General, to give effect to the request addressed by the Eleventh Session of the Conference (1961) to the Council for a study on committees, working parties and panels of experts appointed in their personal capacity (see Report of Eleventh Session of the Conference, paragraph 107). This comprehensive statement was submitted by the Director-General at the request of the Program Committee to which the Council had delegated the study, and is set out in Appendix B to this Report.
114. The Council expressed appreciation of the thorough manner in which this important and complex matter had been handled. It approved the conclusions and recommendations of the Program Committee (paragraphs 10 to 19 of Appendix B). The nomenclature which it was proposed to adopt (paragraphs 20 and 21 of Appendix B) was also approved and the Director-General was commended for already having given effect to the proposals in this respect, pending Council and Conference pronouncement thereon. The Council further approved for submission to the Conference the draft amendments to Rule XXXI of the General Rules of the Organization to clarify the constitutional position of such committees, working parties and panels, as set out in paragraph 25 of Appendix B.
8 Committees, working parties and panels of experts.
115. The Council welcomed the Program Committee's proposals for the establishment of machinery for internal supervision of the creation, maintenance and duration of these committees, working parties and panels of experts (paragraphs 26 to 29 of Appendix B). It also noted with approval that the arrangements for giving effect to these proposals for supervisory machinery had already been prepared by the Director-General and would be carried out forthwith, subject to the comments of the Council and pending final approval by the Conference. The Council emphasized the need for continuing and careful scrutiny of the complex of bodies and panels of experts appointed in their personal capacity, on the one hand, and of ad hoc committees and working parties of government representatives on the other, to ensure the best use of the Organization's resources.
116. In the light of current trends in scientific research work, the attention of the Director-General was called to the possible use by FAO not only of individual experts but also of teams of experts as opportunity offered and occasion demanded.
117. The Council further noted that at the request of the Program Committee the Director-General had expanded the Directory of FAO Statutory Bodies, Councils, Commissions, etc., to include all committees, working parties and panels of experts appointed in their personal capacity.
118. The Council recommended that the Conference approve the conclusions and recommendations of the Program Committee, including the nomenclature, the amendments to Rule XXXI of the General Rules of the Organization and the internal supervisory machinery as set forth and proposed in the paragraphs of the Appendix respectively indicated above.
119. The Council considered a draft resolution formulated by the Program Committee in pursuance of the directive given to it by the Twelfth Session of the Conference in paragraph 173 of its Report.
120. After incorporating a certain number of amendments the Council approved a resolution in the following form:
Resolution No. 3/43
FAO COMMITTEE ON WOOD-BASED PANEL PRODUCTS
THE COUNCIL
Concurring with the importance attached by the FAO International Consultation on wood-based Panel Products held in Rome from 8 to 19 July 1963, to the potential contribution of forest industries manufacturing such products toward raising living standards in present low-income countries, but recognizing at the same time the dangers that may arise from imbalances between the growth in effective demand and the rate of expansion of manufacturing capacity,
Noting that the Conference appreciated the growing importance of wood-based panel industries and their potential contribution toward raising living standards in the developing nations, and that the Director-General should be able to call on expert advice and guidance in developing the Organization's activities in this field,
Authorizes, accordingly, the Director-General
to establish under Article VI paragraph 2 of the Constitution a committee to be known as the FAO Committee on Wood-Based Panel Products, and whose terms of reference shall be to advise the Director-General on the evolution and implementation of the Regular Program and Expanded Program of Technical Assistance, United Nations Special Fund or other field projects related to wood-based panel industries, for which the Organization is responsible; to indicate special topics or sectors that should be the subject of study by the Organization and suggest priorities; to furnish guidance on the categories of technical, statistical and economic data pertaining to wood-based industries that should be collected, compiled, analyzed and published internationally;
to select Member Nations and Associate Members, inviting them to appoint specially qualified representatives for this Committee, such selection by the Director-General of Member Nations and Associate Members being effected in the light of the desirability that Committee membership should be not less than 15 and not more than 30 Member Nations and/or Associate Members, and that its composition should be representative of the different regions of the world and reflect broadly consumers' and producers' interests in relation to the various major categories of wood-based panel products and raw materials therefor;
to convene sessions of this Committee as the need arises, on the understanding that:
the expenses relating to the services of each Member of the Committee and his attendance at sessions of the Committee shall be borne by the Member Nation or Associate Member having appointed him;
the Director-General shall supply the necessary secretariat services for the Committee.
121. The Council considered and approved the Report of the Eleventh Session of the European Commission on the Control of Foot-and-Mouth Disease as presented in document CL 43/23.
122. The Council had before it the report of its Working Party on the Rational Utilization of Tuna Resources in the Atlantic Ocean (FIb/R13), which had been circulated in March 1964 to all Member Nations and Associate Members by the Director-General with a request for comments. Comments had also been invited from ten fishery councils and commissions. Summaries of the replies received from thirty-three Member Nations and three international bodies were presented to the Council.
123. The Council expressed its agreement with certain conclusions and recommendations of the Working Party, i.e.:
that problems of all the groups of tuna and tuna-like fishes inhabiting the entire Atlantic Ocean required urgent attention;
that it was necessary to continue and expand programs of research in a number of fields enumerated by the Working Party; and
that to this end not only statistics on catches and landings were required but also a detailed and co-ordinated system of data collection must be put into effect as soon as possible.
These conclusions and recommendations had also on the whole been supported by Member Nations and international organizations consulted by the Director-General.
124. The Council noted that the majority of the members of the Working Party and of the governments consulted by the Director-General had expressed the view that a new organization was needed to handle Atlantic tuna matters, but that some governments had felt that existing organizations could undertake this responsibility. In the Council itself, a majority of delegations, supported by one of the nations attending as observers, favored the setting-up of a new organization as a matter of urgency. A few felt that its establishment should be deferred or not be undertaken at all. One of these Members recalled that there already was a special committee for the co-ordination of tuna research in the Atlantic Ocean within the International Council for the Exploration of the Sea (ICES), which had decided to extent its area of interest so as to encompass the entire Atlantic Ocean. In this respect the ICES observer at this session drew attention to the recently approved convention, and referred to the long-standing co-operation between ICES and the Fisheries Division of FAO for co-ordinating the production and publication of statistics over the Northern Atlantic. The ICES observer pointed out that although ICES had not worked to a major extent on tuna, it would gladly co-operate with and assist any other international body with related aims.
125. The majority of Council Members favoring a new organization for Atlantic tuna agreed with the suggestion that a conference of plenipotentiaries of the interested nations should be called to discuss the character, functions and modus operandi of such an organization and if agreement were reached to take steps to set it up. Such a conference could also give consideration to the other matters on which the Working Party had made recommendations or expressed views. One delegate expressed the hope that FAO would accept the city of Recife as the seat of the proposed organization.
126. The Council came to the conclusion that the matter should be referred to the Thirteenth Session of the Conference for a decision, but requested the Director-General meantime to undertake preparatory work including further consultations with Member Nations and interested international organizations so that if the Thirteenth Session of the Conference decided that a conference of plenipotentiaries should be called, it could meet, if possible, early in 1966. If it appeared desirable, a further meeting of the Working Party on Rational Utilization of Tuna Resources in the Atlantic Ocean could be convened in the interval by the Director-General in consultation with the Chairman of the Working Party.
127. The Council was informed of the general arrangements for the establishment of the Joint FAO/IAEA Division for Atomic Energy in Agriculture (document CL/43/25)9. There would be a transitional phase from the date of the establishment of the Joint Division on 1 October 1964 until 31 December 1965, which would be the end of the FAO biennial Budget and of IAEA 1965 Budget. From 1 January 1966, the Joint Division would operate on the basis of a single program on behalf of the two agencies. The Joint Division would be located in Vienna, with IAEA providing office facilities and general services. The Director-General of FAO had appointed the Director of the Joint Division, in agreement with the Director-General of IAEA; the latter had appointed the Deputy Director.
128. The representative of IAEA expressed on behalf of the Director-General of that agency the satisfaction he felt at the progress that had been made and his anticipation that the Joint Division would give a new impetus to the co-operative work between the two Organizations.
129. In approving the arrangements for the Joint Division, the Council congratulated the Director-General on his success in bringing about closer co-operation with IAEA through such a positive approach.
130. The Council recognized the increasing significance of the applications of atomic energy in agriculture and emphasized the importance of ensuring that all of the work of the two Organizations in this field should as soon as possible be consolidated in the newly established Joint Division. With its location in Vienna, particular attention would have to be given to the development of close working relations with the FAO technical Divisions in Rome in order to facilitate the application of atomic energy for the benefit of food and agriculture. Stress was also laid on the need for procedures that would ensure that communications to Member Governments would be issued simultaneously in the name of the two Organizations so that both agricultural and atomic energy authorities in Member Nations would be in a position to participate fully in the work in their respective spheres of responsibility.
131. The Council noted the information given by the Director-General on his current ideas concerning the Program of Work for 1966/67. The Director-General said that chiefly because of the continuing inflationary pressure both at headquarters and in the regional offices, which continued to raise salary and operational costs of the Organization per unit of program, the “mandatory increases” were expected to run above 12 percent over the approved Budget of the current biennium. In addition, there would be certain program increases to meet the increasing call for assistance from the developing countries. While some of this additional work would be met by necessary and possible shifts in the existing program, a minimum of additional resources would be necessary. The precise amount or percentage of such additional resources was still being worked out. The Director-General, however, indicated that he would propose certain expansions for the Fisheries Division and the inclusion under the Regular Program of FAO's share of the cost of the Joint FAO/WHO Codex Alimentarius Commission, as recommended by the Twelfth Session of the Conference; and some further expansion of work in agricultural development and trade as a follow-up on the United Nations Development Decade and the United Nations Conference on Trade and Development. In this connection, he referred to the preparation of an Indicative World Plan for Agricultural Development, to the expansion of the FAO/IBRD Co-operative Program and to joint FAO/UNICEF projects. He would also propose the inclusion of some appropriate portion of the Freedom from Hunger Campaign costs in the Regular Budget of the Organization, as recommended by the Council Committee-of-the-Whole. The Director-General further said that he would give careful consideration to the proposal for setting up an emergency fund for the control of livestock diseases.
132. The Council welcomed this advance information and expressed some tentative views on certain aspects of the Director-General's thinking. The Council, however, requested the Finance Committee to include a clear statement in the report of the next session as to what the mandatory increases comprise and as to how they are calculated.
