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Admission of the Spanish zone of Morocco to the general fisheries council for the Mediterranean
353. Article VIII, paragraph 1 of the Agreement establishing the General Fisheries Council for the Mediterranean provides that the said Agreement "shall be open to acceptance by governments which are members of the Food and Agriculture Organization of the United Nations." Paragraph 2 of that Article further provides that the Agreement "shall also be open to acceptance by governments which are not members of the Food and Agriculture Organization of the United Nations with the approval of its Conference and of two-thirds of the Members of the Council," and that "participation by such governments in the activities of the Council shall be contingent upon the assumption of a proportionate Share in the expenses of the Secretariat, as determined by the Council and approved by the Conference of the Food and Agriculture Organization."
354. At the third session of the General Fisheries Council for the Mediterranean, held in Monaco from 14 to 19 October 1954, the Spanish Delegation submitted an application for membership in respect of the Spanish Zone of Morocco, which application was subsequently confirmed by the Minister for Foreign Affairs of the Spanish Government.
355. The General Fisheries Council for the Mediterranean approved the application and decided to transmit it to the FAO. Conference. The Council suggested that the contribution of the Spanish Zone of Marocco should be fixed at $ 500.
356. When considering this application, the attention of the Conference was drawn to the fact that there was a difficulty of a legal nature in connection with the admission of such an entity.
Admission of the Spanish Zone of Morocco to the General Fisheries Council for the Mediterranean
The Conference
Having taken cognizance of the request for ad mission to the General Fisheries
Council for the Mediterranean submitted on behalf of the Spanish Zone of Morocco by the Government of Spain;
Considering the obstacle of a juridical nature to the admission of such an entity to the General Fisheries Council for the Mediterranean under the terms of Article Vlll of the Agreement establishing that Council; and
Having noted the approval of the application by the General Fisheries Council for the Mediterranean and the suggestion that the annual contribution of the Spanish Zone of Morocco be fixed at $ 500;
Recommends that the General Fisheries Council for the Mediterranean take the necessary steps to make this admission possible by amending Article VIII of the Agreement in order that territories of the region that are not responsible for their external relations may become members of the Council, and subject to such an amendment being adopted;
Approves the admission of the Spanish Zone of Morocco to the General Fisheries Council for the Mediterranean and the amount of the contribution suggested by the Council.
Granting of consultative status to non-governmental organizations
358. Section III of the regulations governing the granting of consultative status to international non-governmental organizations provides that "the Conference shall, at each Session, examine and take a decision upon the proposals submitted by the Council concerning the organizations seeking admission for consultative status "and that "in a year in which there is no Session of the Conference, the Council may examine and take a decision on applications for consultative status, subject to review by the Conference at its next session."
359. At its Twentieth Session (September-October 1954) the Council decided to grant consultative status to the "International Conference of Catholic Charities" and the "International Union of Family Organizations," subject to review by the Conference at its Eighth Session.360. Further, at its Twenty-second Session (October-November 1955), the Council recommended that the "International Federation of Christian Trade Unions," which had submitted an application for consultative status, be granted this status.
Granting of Consultative Status to Non-Governmental Organizations
The Conference
Having considered the Reports of the Twentieth and Twenty-second Sessions of the Council regarding the granting of consultative status to the "International Conference of Catholic Charities," "the Internacional Union of Family Organizations" and the "International Federation of Christian Trade Unions ";
Approves the granting of consultative status to these three non-governmental organizations.
362. In accordance with Section V, paragraph 4, of the "FAO Policy concerning Relations with International Non-Governmental Organizations," which provides that "the Conference shall review at each session the list of organizations approved for consultative status," the Conference noted that the Council had carried out this review and had no specific proposals to make for any action to be taken.
363. With regard to the problem posed by the admission of observers representing not only non-governmental organizations but other entities as well, the attention of the Conference was drawn to the fact that, since its Seventh Session, questions of interpretation of the Constitution and Rules of Procedure of the Organization had arisen regarding the granting of observer status and participation of observers m sessions or meetings arranged by the Organization, with particular reference to Conference and Council sessions.364. The Conference concluded that a thorough and comprehensive review of all problems connected with observer status should be carried out.
Granting of Observer Status
The Conference
Considering that Article III of the Constitution and the relevant Rules of Procedure regarding observer status are not sufficiently clear;
Requests the Council to consider and suggest amendments to the Constitution and Rules of Procedure for the purpose of eliminating any possible ambiguity, with special reference to the definition of observer status, the establishment of criteria for the granting of such status and the consideration of all juridical and practical aspects of the problem.
366. Under the provisions of Rule XXI paragraph 6 of the Rules of Procedure, the Director-General is required to "report to the Conference whenever a convention, agreement, regulation, or supplementary agreement has, in accordance with its terms, come into force or ceased to be in force, or has been amended and the amendments come into force."
Status of Conventions and Agreements thereto Requiring Conference Action
The Conference
Having taken cognisance of the Report on the Status of Conventions and Agreements and on Amendments thereto requiring Conference action submitted to it by the Director-General as Document C 55/18 under the provisions of Rule XXI paragraph 6 of the Rules of Procedure; and
Having approved, in pursuance of Article IX of the Constitution of the International Rice Commission, the amendments to that Constitution appearing in the Report and which were adopted by the International Rice Commission at its Fourth Session held in Tokyo from 11 to 19 October 1954;
Adopts the Report.
368. The establishment of a Latin-American Forestry Research and Training Institute was recommended at the first Forestry Conference of the Organization in Latin America, held at Teresopolis, 1948, and at successive meetings of the Latin-American Forestry Commission held between 1949 and 1955.
369. The Sixth Session of the FAO Conference approved in principle the establishment of the proposed Institute, noting with gratification the offer made by the Government of Venezuela to constitute the central body of the Institute at the Forestry School of the University of Los Andes, Mérida, with its attendant buildings.
370. The Head of the Delegation of Venezuela submitted to the present Session of the Conference a Draft Agreement for the provisional establishment of a Latin-American Forestry Institute in Mérida, Venezuela.
371. This Agreement provides that it will remain in force for a period two years, it being understood that upon the expiration of this period, the Government of Venezuela and the Director-General of the Organization will undertake a revision of its provisions in the light of experience acquired and of offers of co-operation from Member Governments of the Latin-American Forestry Commission with a view to submitting to the Ninth Session of the Conference a draft agreement for a more permanent type of establishment.
372. The Institute is to be an international body under the auspices of FAO and its Latin-American Forestry Commission, but with juridical personality and full legal and financial independence.
Agreement for the Establishment of a Latin American Forestry Research and Training Institute
The Conference
Having considered the Draft Agreement between the Government of Venezuela and the Organization which was submitted by the Government of Venezuela regarding the establishment on a provisional basis of a Latin-American Forestry Research and Training Institute, the text of which is contained in Appendix D attached to this Report;
Notes that the very generous offer of the Government of Venezuela of appropriate facilities and financial support, together with such assistance from FAO and other sources, as is visualized in the Agreement, makes the realization of this much needed project possible;
Approves the proposed bilateral agreement between the Government of the Republic of Venezuela and the Organization, under which this Institute will be organized and operated for a provisional period of two years;
Requests the Director-General to take such administrative measures as are necessary to ensure this end, and to undertake with the Government of Venezuela, upon the expiration of the period of two years, a revision of the provisions of the agreement in the light of experience; and
Expresses its confidence that the Institute will serve usefully in stimulating and coordinating regional research efforts.
Agreement with the Council of Europe
374. On the initiative of the Secretary-General of the Council of Europe, a Draft Agreement was drawn up between FAO and the Council of Europe for the purpose of ensuring collaboration, of providing appropriate machinery for liaison and consultation on the respective programs of the two Organizations and of avoiding duplication of activities.
375. This Draft Agreement, the text of which is attached hereto as Appendix E, was approved by the Committee of Ministers of the Council of Europe and was the object of a favorable opinion of the Consultative Assembly of the Council of Europe.
Agreement with the Council of Europe
The Conference
Pursuant to Article Xlll paragraph 1 of the Constitution of the Organization under which the Conference, in order to provide for close co-operation between the Organization and other international organizations with related responsibilities, may enter into agreements with the competent authorities of such organizations for the purpose of defining the distribution of responsibilities and methods of cooperation,
Having considered the terms of the Draft Agreement between the Council of Europe and the Organization,
Confirms the approval of this Agreement as given by the Council of the Organization under Rule XXVI paragraph 1 (e) (v) of the Rules of Procedure; and
Requests the Director-General to take any action required to put this Agreement definitively into force.
Structure, functions and procedures of the council and of certain committees
377. The Conference had before it a draft Resolution proposing that it establish an ad hoc Committee of government representatives to carry out a study of the functions, interrelationships, meetings and other arrangements of the Council, the Co-ordinating Committee, the Committee on Financial Control and the Committee on Commodity Problems, with a view to:
(i) reducing the number and duration of meetings;
(ii) eliminating unnecessary documentation;
(iii) avoiding successive reviews of the same subject matter.
Terms of Reference of the ad hoe Committee
378. It had been suggested that the scope of this study should include Commissions, regional consultations and other meetings of a technical character arranged under the auspices of FAO, as governments were finding it increasingly difficult, financially and otherwise, to participate fully in such meetings.
379. While it recognized that these difficulties were very real, the Conference noted that they did not raise issues of a structural nature as was the case with the standing organs of FAO. The problem was one of planning and lay within the responsibility of the Director-General whose attention was therefore drawn to the advisability of scheduling meetings with due regard to the difficulties of Member Governments.
380. The Conference further noted that the proposal before it involved a detailed review of the structure, functions and procedures of the Council and of the three Committees listed above. This review should also bear upon the relationships of these Committees with the Council and of the Council with the Conference. It should aim at such simplifications as would lead to economy of time and money, bearing in mind the need to ensure adequate supervision of the activities of the Organization, and the fullest possible participation of Member Governments therein. The ad hoc Committee to be established for the purpose should feel free to formulate whatever recommendations it would deem appropriate to achieve these purposes.
Methods and Composition of the ad hoc Committee
381. The Conference decided that the ad hoc Committee should report to the Ninth Session of the Conference in 1957. Stress was laid on the fact that its Report should be circulated to Governments a few months before the opening of the Ninth Session of the Conference and that it should be placed on the agenda of the pre-Conference Session of the Council in order that the Council might submit its own comments and take whatever steps might be required-including the circulation of possible draft amendments to the Constitution - to enable the Conference to deal fully with the matter at its 1957 Session.
382. The Conference noted that in the circumstances, the ad hoc Committee would have approximately 15 months to carry out its task. While it should be limited in membership, it should include representatives from the main regions, not only to collect and interpret the views of the various Member Nations, but also to keep in contact with them and seek solutions that would be generally acceptable to them.
383. The Conference recommended that the Committee should meet early in 1956 to hold a preliminary discussion and arrange for an early consultation of all Member Nations. It was understood that it might invite the Chairmen of the Council, Co-ordinating Committee and Committee on Financial Control to attend its discussions in an advisory capacity, and that it might likewise invite such governments as would have submitted valuable comments and proposals to be represented at one or more of its meetings.
384. The Conference accordingly adopted the following resolution:
Structure, Functions and Procedures of the Council and of certain Committees
The Conference
Considering that the meetings of the Council, the Committee on Commodity Problems, the Co-ordinating Committee and the Committee on Financial Control result in substantial costs to the Organization and to its Member Nations;
Considering further that the positive values to the Organization and to Member Nations arising from the activities of these bodies could be preserved and made more effective at less cost to the Organization and to participating governments;
Determines that a study be made of the structure, functions and procedures of the above organs, and their relationships among themselves and with other closely related conferences and meetings, with a view to improving their efficiency, eliminating what appeared to be unnecessary documentation and avoiding successive reviews of the same subject matter;
Decides to appoint an ad hoc Committee composed of the followings Member Governments: Colombia, Egypt, France, India, New Zealand, the United States of America, and an Independent Chairman, Sir Donald Vandepeer, to carry out this review;
Requests the Committee to report its recommendations to all Member Nations not later than I May 1957, in order that these recommendations may be placed on the agenda of the Ninth Session of the Conference; and Requests the Council, pending submission of the ad hoc Committee's recommendations, to review carefully the proposed schedule of Council and Committee meetings in 1956 and 1957 Wit/l the objective of reducing their number and duration and of effecting improved co-ordination of related functions and work within these two years.
385. The Conference was further of the opinion that because of the special character of the ad hoc Committee, the responsibility of which is to simplify procedures to the common benefit of all Member Nations of the Organization, arrangements should be made to defray the travel expenses of the members of the Committee.
386. The Conference was informed by the Director-General that an estimated $20,000 were required to cover all the expenses involved.
387. The Conference considered that the special and non-recurring nature of this undertaking justified ad hoc financial arrangements. Having regard to the undesirability of curtailing the Program of Work to make provision for the committee in the budgets for the ensuing two years, the Conference adopted the following resolution:
Financial Arrangements
The Conference
Notwithstanding the provisions of the amended Financial Regulations regarding the disposition of the 1955 surplus;
Decides to authorize the Director-General to use an amount of $ 20,000 from this surplus to establish a reserve fund under Financial Regulation 6.8 from which the expenditure in connection with the above Committee shall be met. This fund shall otherwise be administered in accordance with the Financial Regulations and a report on the operation thereof submitted with the final accounts of 1956, and, if necessary, 1957. Any unexpended balance shall be added to the surplus of the financial year in which it accrues.
F. Financial, administrative and personnel matters
Principle of biennial budgeting
Scale of contributions
Audited accounts
Financial position of the organization
Fellowships in the regular program
Financing of home leave costs
Amendments to financial regulations
Director-General's proposals for organization adjustments
Use of conference facilities
Compensation plan - reserve fund for service - incurred death and disability
Geographic distribution of staff
Appreciation of work of the committee on financial control
Principle of biennial budgeting
388. In order to achieve some equalization in the budgets for the two years of a biennium, especially for items such as Conference costs which do not recur in each financial year, the Organization has followed a system of carryover for certain appropriation balances. The Committee on Financial Control noted that the present system is not entirely satisfactory since balances presently carried forward do not include all such costs. At the same time, the Committee questioned the advisability of further complicating budgetary and accounting procedures by providing for additional appropriations which might be carried forward from year to year, and concluded that such action would not represent a complete solution to the problem.
389. The Conference agreed with the Committee on the desirability of making a study of the possibility of establishing the Organization's budgetary and program planning and operations on a biennial basis. It recognised that some advantages, such as improved programming and the simplification of accounting and administrative procedures, could result from a change to a biennial system. At the same time the Committee pointed out that, in the consideration of a biennial budget system, attention would also have to be paid to the development of certain financial controls to ensure that there would not be any undue concentration of expenditures in one of the two years. Such a budget would have to be divided into two equal parts only for the purpose of assessment of annual contributions.
390. The Conference therefore adopted the following resolution:
Biennial Budgeting
The Conference
Noting that the Organization's program of work is already approved by the Conference on a two-year basis, and that the Committee on Financial Control has concluded that there are certain reasons in favor of establishing the Organization's budgetary and program planning and operations, as well, on a biennial basis;
Instructs the Director-General to conduct a detailed study of all the implications of the adoption of such a biennial budgeting system and of the required revision in the Constitution, the Rules of Procedure and the Financial Regulations;
Requests that the results of the study be submitted for review by the Committee on Financial Control and the Council; and
Requests the Council to report thereon to the Ninth Session of the Conference.
391. In Resolution No. 60 the Seventh Session of the Conference requested the Council to examine fully and report to the Eighth Session of the Conference all factors involved in the calculation of the Organization's Scale of Contributions, with special reference to the United Nations method of computation, the maximum and minimum limits, and the per caput incidence of contributions. It also requested the Director-General to calculate for submission to the Council scales for use in 1956 and 1957 based on the Council's recommendations as a result of its examination, and to circulate these scales, as endorsed or amended by the Council, to Member Nations before the opening of the regular Session of the Conference in 1955.
392. To implement this request, the Council appointed a Working Party; it subsequently endorsed and submitted to the Conference the recommendations of the Working Party concerning both the basic principles of the method of computing the scale and the application of such principles. The Conference also received a Scale of Contributions for 1956 and 1957, based upon the Working Party's recommendations. Subsequent action by the General Assembly, concerning the United Nations Scale of Assessments, whereby the Scale would apply for three years, i.e. 1956, 1957 and 1958, made it desirable to revise one of the recommendations of the Council.
393. The basic principles endorsed by the Council are as follows:
A. That the Organization should adopt for 1956-57 and subsequent years the United Nations Scale of Assessments, adjusted to take into account the differences in membership between the two Organizations. FAO would, thereby, endorse the fundamental principles which have been adopted and are applied, as far as possible, by the United Nations, in particular:
(i) Member Governments should contribute towards the ordinary expenses of the Organization according to their relative capacity to pay as indicated by their average national income for a series of years;
(ii) No one Member Government should pay more than 33.33 percent of the ordinary expenses of the Organization;
(iii) The minimum contribution should not be lower than 0.04 percent;
(iv) Member Nations whose per caput income is less than $1,000 should receive an exemption of a maximum of 50 percent to be applied on a sliding basis according to the size of their per caput income;
(v) In normal times, the per caput contribution of any Member should not exceed the per caput contribution of the Member which bears the highest assessment.
B. That, in conformity with Resolution 876 (IX) adopted by the General Assembly of the Unite d Nations at its Ninth Session the principle of a per caput ceiling should receive further application in the future:
(i) "as substantial improvement in the economic capacity of existing Members permits such adjustments to be gradually absorbed in the scale";
(ii) "as additional Members are admitted."
394. The Conference agreed that having regard to the particular circumstances applying in the Organization and to the indications given by the United States regarding the maximum contribution, the above principles would in practice be applied in the following, manner:
(i) The scale of contribution of FAO would in the future be derived directly from the UN Scale of Assessments as in force during the calendar year of tire Conference Session, and would be applicable to the two following years;
(ii) For 1956-1957 the percentage of the highest contributor would be 31.5 percent:
(iii) For 1958-1959 and thereafter the percentage of the highest contributor would be 33.33 percent;
(iv) The application of the maximum percentage of 33.33 percent in two stages, as described above, would be subject to any adjustment that the Conference might consider desirable, should important variations in the membership of the Organization take place in the meantime;
(v) The minimum contribution would henceforth be 0.04 percent;
(vi) The sliding exemption for countries with a per caput income of less than $1,000 would, as a result of the adoption of the United Nations scale, be automatically applied to the full extent that it is applied in the United Nations;
(vii) The principle of a per caput ceiling (Point A (v) above) would likewise be automatically applied by FAO to the extent that it is applied in the UN. The further application of the principle envisaged in recommendation B (ii) above would also be automatic insofar as the fulfillment of the conditions for such further application would affect both the UN and FAO. In cases where only FAO is affected (e.g., when the economic capacity of FAO members who are not members of the UN is substantially improved or as and when additional members are admitted to FAO) the method of implementing recommendation B (ii) would be determined by the Conference with due regard to all economic and other relevant factors.
395. The Government of Korea had requested, because of difficult problems arising from rehabilitation of its war-torn economy, exemption from payment of its contribution to the Organization for the current financial year. While most sympathetic to the situation confronting the Republic of Korea, the Conference did not consider it feasible in principle to write off any contributions already assessed for 1955; it agreed, however, and this approach was acceptable to the government, to reduce the Republic of Korea's contribution assessment to 0.11 percent in each of the years 1956 and 1957 as temporary emergency relief, which would in total effect provide an equivalent reduction in assessments.
396. In the light of these considerations the Conference adopted the following resolution:
Scale of Contributions
The Conference
Having noted the report of the Working Party on the Scale of Contributions as well as the recommendations of the Twenty-first Session of the Council;
Considering that the United Nations Committee on Contributions is the most qualified body for assessing Member Governments ability to pay as well as all the other factors entering in the computation of an equitable scale of contributions;
Adopts the recommendation of the Council;
Decides that the FAO Scale of Contributions will in future be derived directly from the United Nations Scale of Assessments as in force during the calendar year of the Conference Session, and will be applicable to the two following fiscal years, subject to the following adjustments:
(i) that in 1956 and 1957 the maximum contribution shall be 31.5 percent:
(ii) that the scale for 1956 and 1957 will be derived from the United Nations Scale of Assessments for 1956, 1957 an d 1958;
(iii) that to the Republic of Korea will be granted temporary emergency relief to the extent of its 1955 contribution by reducing, the contributions for 1956 and 1957 to 0.11 percent;
Accordingly adopts for use in 1956 and 1957 the scale set out in Appendix F to this report which incorporates the above adjustments.
397. In adopting this resolution the Conference noted the request of certain Member Governments which are not Members of the United Nations (particularly Spain and Ireland) that appropriate consideration be given to the special problems which arise in computing their shares of the Scale of Contributions, recalling in this connection Resolution No. 61 of the Seventh Session of the Conference.
398. The Conference, commending the Director-General for presenting the 1954 final accounts for audit by 31 March 1955, adopted the following resolution:
Audited Accounts for 1953 and 1954
The Conference
Having examined the Audited Accounts for the financial years ended 31 December 1953 and 31 December 1954, and the Auditor's reports thereon, together with the comments of the 19th and 20th Sessions of the Committee on Financial Control:
Approves the Audited Accounts for the above-mentioned periods.
399. In addition to approving the 1953 Audited Accounts, the Conference also adopted the following resolution as proposed by the Committee on Financial Control and the Council, approving the action taken in recording the arrears of 1952 excess credits in the General Fund in 1954:
Arrears of 1952 Excess Credits
The Conference
Having determined that 1952 excess credits in the Working Capital Fund released as of 31 December 1953 in the sum of $ 13,674.16 were applied to arrears of contribution in 1954, although under Financial Regulation 6.5 (b) they should have been applied and credited to the General Fund in 1953;
Considering that the many adjustments to Member Nations accounts, necessary if correcting entries were to be made, are so small as to make such action questionable from a practical standpoint;
Approves the recording of such credits in the General Fund as 1954 transactions.
Financial position of the organization
400. The Conference considered the report of the CFC, submitted by the Council, on the financial position of the Organization and noted with satisfaction that the amount of contributions in arrears from present Member Governments as of November 1955 had decreased to approximately $100,000, the lowest amount in the history of the Organization; it expressed the hope that this favorable trend will continue.
Fellowships in the regular program
401. At the request of the Co-ordinating Committee, the Committee on Financial Control considered the Director-General's proposal for award of fellowships under the regular program in the light of the Organization's legal obligation upon award of such fellowships and the time during which funds therefor should remain available for expenditure. The Conference endorsed the Committee's conclusion that the legal obligation for awarded fellowships under the regular program should be regarded in the accounts under the same definition as that adopted by the Technical Assistance Board for ETAP fellowships, i.e. a fellowship constitutes a commitment when it is awarded and for the full amount of its cost. The Conference agreed that when the Organization awards a fellowship it should clearly stipulate a period of time within which it must begin and be completed.
402. Since this approach requires an exception to Financial Regulation 4.3 and since the Conference felt it desirable to defer any actual amendment to this Financial Regulation pending further practical experience with fellowships under the regular program, it adopted the following resolution:
Legal Obligation in Respect of Fellowships
The Conference
Determining that for the purposes of the books of account of the Organization the liability for a fellowship is established when, after the nomination of a fellow by a government and his acceptance by the Organization, a formal letter of award is issued;
Decides that notwithstanding Financial Regulation 4.3 outstanding legal obligations in respect of fellowships as at 31 December in any financial year shall remain available for expenditure until the fellowship is completed or otherwise terminated, any balance then remaining being treated at the end of the financial year in accordance with Financial Regulation 4.3.
403. At its Seventh Session, the Conference adopted Resolution No. 67 whereby funds budgeted for home leave in 1954, if not expended in that year, could be carried over into 1955 and would be available for expenditure on home leave during that year. It instructed the Director-General to report, after consulting with the Committee on Financial Control, to the 1955 Session of the Conference on the efficacy of this arrangement. Since then, in the light of the experience of the last two years, the Director-General had concluded that the continuation of the carry-over system was not necessary and recommended its elimination; as this recommendation had the endorsement of the Committee on Financial Control, the Conference agreed that a comparable exception from Financial Regulation 4.2 was not required for 1956 and 1957.
Amendments to financial regulations
404. At the suggestion of the Seventh Session of the Conference, the Committee on Financial Control examined the Financial Regulations, particularly those governing. the operations of the Working Capital Fund, with a view to determining whether amendments were necessary or simplifications possible.
405. At the request of the Council, the Director-General forwarded to all Member Governments for comment a series of proposals for amendments to the Financial Regulations which the Committee on Financial Control had submitted to the Twentieth Session of the Council. Taking into account the comments received from Member Governments, the Committee on Financial Control submitted a new series of proposals to the Twenty-first and Twenty-second Sessions of the Council, which endorsed and submitted them for approval by the Conference. These amendments relate particularly to the Working Capital Fund and to the implications arising from elimination of the "foreseeable receipts "clause in Financial Regulation 4.1.
406. The Council also referred to the Conference certain amendments to the Financial Regulations arising from the admission of Associate Members and from recommendations of the Committee on Financial Control for changes affecting the operations of the Publications Revolving Fund.
407. A number of delegates expressed concern lest the removal of the "foreseeable receipts" provision should open the way to a lasting position of deficit. The Conference took note of the safeguards provided against this in the form of the amended Financial Regulation 6.5 and was assured that the Director-General would, in fact, so operate the new provisions as to ensure that there would be no undue or continuous deficit in the General Fund and therefore in the approved level of the Working Capital Fund. Accordingly, it was understood that under no circumstances would Member Governments be asked to contribute to making good any deficit in the Working Capital Fund resulting from the operation of the new provisions Some delegates expressed concern at the proposal to exclude the contributions of Associate Members from the Scale of Contributions and to credit these contributions to Miscellaneous Income.
408. After extensive discussion and incorporation of certain minor amendments, the Conference adopted the changes in the Financial Regulations, which are set forth in Appendix G.
409. The Conference also agreed with the recommendation of the Committee on Financial Control and the Council that the amended Financial Regulation 6.1 be applied to 1955 operations. It adopted the following resolution:
Amendments to Financial Regulations
The Conference
Having considered the amendments to the Financial Regulations recommended by the Committee on Financial Control and the Council;
Decides to amend the Financial Regulations accordingly, with effect from I January 1956, provided that amended Regulation 6.1 shall be applied with effect from I January 1955 and provided that the provision of Regulation 6.2 (b) (vi) shall be applied to the assessment effected under Financial Regulation 6.2 (b) (i).
Publications Revolving Fund
410. At its Seventh Session, the Conference approved amendments to the Financial Regulations providing for the establishment of a Publications Revolving Fund, to which all proceeds from the sale of publications and films should be credited. The use of the fund was limited to the " cost of reprinting those FAO publications and films for the sale of which there is a demand. "
411. As recommended by the Committee on Financial Control, the Conference approved a proposal of the Director-General that the purposes of the Fund be extended so as to permit the annual use of an established amount for the production of printed promotional materials and for advertising in appropriate journals, with a view to widening the distribution of the Organization's publications and thus increasing the usefulness of the information contained in these publications. It agreed also that the Publications (evolving Fund should bear all charges for sales promotion and that no provision should he included in the Regular Program budget for this purpose in the future.
412. The Conference therefore approved the amendment of Financial Regulation 6.9 to encompass this extended use of the Publications Revolving Fund. The amended Financial Regulation established a ceiling of $20,000 as the amount which can be carried forward in the Fund at the end of each year, ally surplus over that amount being credited to Miscellaneous Income in the Regular Program budget of the year during which the audit is completed
413. The Conference also accepted the Director-General's proposed maximum of $10,000 for expenditure from the Fund for sales promotion purposes in each of the years 1956 and 1957.
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