Of~ANJZATI.ON OF AJiRICAN UNITY

Seeretarillt P. 0. Do:~~: 3~43·

4-i-.)'i\ a-1 .. Jh 4Ji:,. ·ORGANIZATION DE L'UNITll. ._,)~f.sJt AFRICAiNE

«' Al.ldis Ababa .•. W J"''l..t ~

· Scerdatiat B. ·p. 3243:

?M/984(XXXIII)

COUNCIL OF'MINISTERS

Thirty-Third Ordinary S~ssion

r.1onrovia, Liheria; July 1979

REPORT OF TI{E SECRET~~y GENERAL ON THE . I

FIFTH UNITED NATIONS G:ONFERENCE ON TrtADE --~-~-----.---.. -AND DSVELOP1-1ENT ··---.. -------...

CM/984{XXXIII)

; .(-. . HEPORT OF THE "SECHETAR¥· 'GE~TERAL ON THE FTF,TH UNITED NATIONS .. : CONFERENCE· ON T:t1ADE AND: DEVELOPME!iT

:-:;

" '; ~

.... , ...... ;. .(:'. . ': "'

I, .. INTRODUCTION TO THE REPORT ~ . ::

.. ~·

This report has been_ ,.;ritten to !:)i.'J:';)_.tha Council of ... Ministers the results of the UNCTAD V last month .•in Hanila.

It was drawn ·in a hurry because t:he Sec·r~tariat .v1~ ... .-11t·ed to ' .. · .... ! ..... ::, __ ...... ~:·:.. ... :: ...... . :. ·: ', .

' ' ' '". ~·· ····-take adVfu"l.tage o~ the Colli."'lcil o:f ~Iinisters .i~. 'lvfon:t'·o.~~a to

a:_cq1;tai~~ :the;_.-Ninisters \Vith the deci.?i.ons. of.-;the_.·Con.i~erence.

As .st~t ~d in I.tem 8. of: :this report, t,h.e deVelo-:Jing countries . ':" ... . --~- :· ..... .

,L\'lft ,the Conf.e>renc.e compl.etely disappoint"'d •.;ith ~ho results,

2 •. ':

. r. '' Towa!t'ds :t.P~· end of .the

~ .Conf'erenc.~, when .everything

else seemed stagp,<J.n_t, the African Group d~?idGp .~,P-f't. UNCTAD V

. ,, coulq, qnly have. an impact:,;l-f' the f'ollo~1in~ acti~~~' \vere takem-

.. ;

., . • ..

'':

,'-' ·' ..• a): Th!j,'t; tha draft contrc-..:erf3,ial resolut:L?,ns., should be

wi tl1.dra.wo ~ . . ' ., . ' ~

·.b). That those dra:ft reso+u~ions ·vihi?h t~e developed

c,ountrios. ,.-lrv.ere ~nnec~ssarily o1J~tructing: .should

c)

pe ·s\lbm,itted, to

. Gr .• up was :fully . . 'the. v6te even though t"he African

~~~~ciHt:hat ~ny -~~~-~ol,ut;~q~ .. adopted : ' . ··"

, , by t.he s.trength,of the vote q:f the Gro'-\P of' 77 •,muld

not bo easy t~ implement; ~d

That those resolutions which did not cause much .. :.,·.:. ·,. ;'..:.~:._. __ ~~--.-.:.: ...... .. :~ .. ~··" .... ..; ''"" ..

conflict among the Groups should be adopted by

concenfl.us in the -p:).enary of. the Cohf'erenf0,

.. ··. ··, :. ·"; :•','•

:3. The Afri9a1,1. . position Has adopted RY. the Group of 77 and

beCftllJ!i'· the str,~tegy of the Gr,oup __ up .to the last day of the

;,; ·,; · .

. ~:. .Al.1: _tJ:w subs.tan-t_:i,ye .Items (fr?'"· 8: ,t~ 2,0) :•l';:lfh 1wrc

:discussed in the C<:>n:fer,ence are covered· in tq!". r!'Jport.

5' The ·decisions or conclusionf) _pn each I.tem appaar at the

end of the re'port .. on itGm· conccrne;d•.··

CM.f 9 e4 { JG~III)

Page 2

... ·-·' -- .... ·-6. Evaluation o:f the ~for1d Trade , a11.d t4e Economi_c si tua-

tio~ and ,. . . . :. : ~ : . cohs:ii:i'~:&:-at~on .. ·o:f iss"~e s, .: . . . . ,

I

poli~ies and appropriate

measures ~ ~

to facilitate struc.tur.a·:l. cha..'"1ge. in . the 'tnte-rnational . ;··: ~ .·. ' !. .• . . I

economy, taking iut·o account the i:nter-relat.i:on_sh:i,ps o:f pr~-

blem·s i·~ the areci.s of trade, develoy_ment, . mop.ey· ~d · ~inan<?~ ~ ~ - . .

with a view to attaining ·the. establ~_~hment of a .New.· Interna-

tional Order.

THE THEI~ 0? · UN~TAD V

7. The t-Tegoti.ating Group hand~i.ng _:this.,~:Lt.em. fa:i:1.~d to

reach a concensus :fqllowing thirty days of in.tensivenegotia-. . . tions and decided to send i..t to the Trade· and Dov&l~pment·

Board ro·r• fur·ther considerat:l~n. The item was qonsidered

'I ,,,

ec.onomi:'c oroblems had n ·ev-·e·:r been consid~ed in the same J - • ..

~anner ·at any- of the . previ•us· f.'our Conf-erences of' UNCTAD.

This item ~as as imp~r.tant to UNCTAD V a,s t~~ Common Fund ~ "

under the Integrated Programme o:f Cow..rnodi tie.s >fas to ill;J"CTAD

IV in Nairobi in 1976 u . .

because it·provid~d a conceptua~ ~rame-

work l-li thin which the st;ructural. cl).ari.ge_s · r equired on each policy . ~ .-

as covered. by the agenda ·cou-td :::e considered i.n 'a mutual con-

sistent manner--. It pr.ovided the under~ying theme of UNCTAD V.

I-f the success of .. "YN?~~p :f was measUP:~~:; a~ainst the expectation . . .. . ,.

the ' deve'loping · c ·ountrie s -attached . tw. _t:hi s i te_m, indeed UNC,TAD V

\vas a failure as everY.~ping el.sc ap_pe~~d to have been hinged

on ·' t ,?:is ·it em.

THE SPIRIT OF ARUSHA:'

8 ·. ·At Arusha, in February, 1979, the Gro"4jj :c>:r·· 77 delegates

who met. in P;J;:'eparatiotl." "-f6r · UNC.TAD.· Y .. in .. :M.anila: _.1..-rere convinced

t~~-~ _th:e . c~;r.~~~ :.-~~-~-?-~ . -~YO.~~:rp~~: -~P·C:;;~~~~:·--~~:;. tp_~, .. :h~rd 1rlorld

were not of:' their own maki1l.g. T-hey .emanate-a :from-, ,. according

to the Ar1-J.s}J.a Dec.la!.';;tt i. on,. ~'t,l:le .. _,.:j..nao;iJ.._~~Y_.P:f the dev_eloped

~~~ket econ::~my -~oun.t1:y .t~~ .~on~r~1.· · t::h~Ji'·~.:.c.hi~on,ic ba~ance-of-~ - . . - - - -~

payment imbalanc'es; persistt)ntly higl1 ieve~s o:f· inf~ation and

GkJ./ 9 84 ( ~"'CXIII) ._--:~. -"' .. .... :p.~g~ 3

t.m:emp.l,-oymen.~~-:;_- : <¥!,~:L_th§l . ~ar.J,ce:t :r:ig:j..ditie_~· :na..""li.f'esteci -i.n. the rising .. . "' · .:; - ~ .- -\ ... .... ~ ..... : ~:. .. .~ ·-:: -....... · .. ,· -, prq.i;;eot·;P.P.:tsm·,. t.l:i?it -pr~h:ibi t ·the str.u~tm::i?-~- , 9ha:nges .neede~ f:o.r ~ ~f:f'~'c:l~~t p~th·--~:r- p~o.d:u?t}.·on, a~l-· poi:.~"b .~o-. ri~~~~ ~ti~y.?J.o·p~en~s

,- ~· ."; r - ... •· ' . "1•-; ~~ "~ -" I • • \ . 1• ~ , ..:'~··,: , '1';'" '• ~· ·' •~ : , ,: : , ~

~~ ~-. ~~ , r).~~ ~"L?-&"Ur1_ ~f~~ . .f.~~ -- ~ o/eli_-:-"bala_:t;t?ed' __ ~9- .. :P~,<?~Pe.r<?~·s l'lorld

f'!CgnhinY.· ~n the .. ·':cqmi?-g decade. 11

·9. rhi-s· :spiri·t····i:p.sp:Lr~ed. . j:l.'J:l' ~h.9. .. h~gotiat~.ons .. ; .''t~li::iqh _:were ur;tdel:'- , ..... • ~ • II• -t!•.1.. • • I" ·•. '" - " • •;l' I .. J "!." ~ :\ :• .:. ".;__' : 0 "

0 0

taken on Ite\JL 8 un-til it· was decided to recommcn~ .to .. t .D,e Ple.nary . . . . . . .. ~ ,

'of' the- Co:nf'.erence that no agreement could be r,eached and there-.. . . .. .. - , _... . .. .. - "'"" ,... .. • • •:· • .J. .. •

£·ore i .t should be taken t .o the. Trad_e 'an.d · Deye:lopment Board of ~ -' :; - t. . r

UNCTAD~ _No date _or time limi:t' was' imppsed. :~n. ~l'l~n i~· c:l'"ould, be

brotight ' bef'or·e ~he· Trade and Development. Board." The real effect J ~ - . . .:_ . . • • ~~ . • ;:

was t ·hat i.t ~as tabled :for someone to pick-:4-P· ·When'nec~ssary in ~· ' . . . ~ . ., _. . . . . . ~;!):~::-: f'_?r~seeab1e f'ut~ro.

BACKGROUND TO TI-IZ CONF,ROT.A;TION AT UNCTAD V -~

1 0~ f-.~.C;'::t·~-~,-~ .. !}~g<?,tiating:~ro·pp~ at .UNCT-4-fl. V. a?cepted1: t~t the

'ctirr.~P.-t;.~ :ti,<;>:r.l¢1 Econo\ll:ic situati-qn "'?-~ ..._:fra-G.ght l-Tith a myriad ~f: ,!: . , .~". ' ' 1 ,<>•~ r;.-,; ;•;: , • ,j-:0 ', , ,o ~ ~ ' 0 , f'. • :: i - , o • • • ·~I '

0

0

I 1"'• ( •;: \ I

i::np6nci.~!'a:P;res ·l;>ut 'differed on . the pr·escrip~ioil;. :fo:j..~ . the c~re. ""'' . ~ ~ ·I. .. ~. ··~ ' . ~ - .. '·· .... . . ., : - . . ~... . ... ..... ·· .. There :wa·s : economic r.ece ssio:n., ._spiralling :inflation which spilled

• • • • • ,._ • • 4 ~ •

o .9,Y,~~i:: .t~ l;~~; ~e:ve.lop'in,g 1-Torld.; · t:1.~ ~e~er_n~,.~.~:_r;c'e/.of m .. ?3_etc:-+Y. dis-

orde_r .and trad'e_: pr.otection±s~m. - Oonse~ni.J?n:~'J.y ,~ ·tl+e.· economic ... . · • • • • '; ; ?- , ~ • • • • ~: . ... ~_·,: ~:- .~~. : - • •• • • .... ... : • ~

growth·-r:ate•.;for po;ut:J,tr:ies in' A:fr~ca, Asia,.~ L~tin A:mer,i.ca and the . ~ .,~ ~-.!~ .,.,." .:~ .. jo~ ··' ,·!~· ....... ~.... 4'1.;: . .;' 1. . ' • :· ....... ~--::· .~.;: ,' .. .

·le.ss. ··devel.ope·<f. .part · of' Europ;:;~.-:ha:s·. ~t·G~-gl?-a': .te<;l. ,re.sul.-t :ing i.ri. ~ealit~S..,. ~ - • .. <! " ... • ;,.... , r ·.· ,. ''-= . . , . . -... ·!C'''

:-~ng only · ~·% •... :B_etw~·~n. 1971 aria i9·7· .. ; ~· the;·; gr.ow.th .. rcii'e' ··:in these re-

·g::Lon.s . was· o~J.y 5.9% -.com:par.ed t ·o 5.7% :i;n the 19.60s. Similarly; · I ' r - ' • ' •• ··, : • • ' •• • '\ ., ~ - • • • ~ "" •.; •. '~ ' • ~ ._ ~

the national income. uer head :in b~t1-ieen -~971 . ~d l977 was 3. 4% - :. . . . ·~ ~ ~;_ · .. ·· .. ' :"" . ·.: . .

i 1 • . The .\-JOrst h:it by -·the current world' ' economt~ crisis are .. · ~. ---; ' ... ~n . ... : - ~.- · . ; .,· ·· ....... -.,. ; r,.; : l.,· .. ·: , . . ,

.almost all countries of', Africa and , South. Asia .. whci - lost out on

nearly all. th~: . de~~·lopme~t: ~;~rg~~·;s< -~;= ~~~gp .··~~~~~ns -.i~1 .-the l9'70s.

Most imp6j;t'~t.:)..y-, agric;m.lt~i.-~-~· f?'i{ f~;. sh?r.£::--if. .J'b.e: development

~ arge;:t-.s: ~ - · .. s~·~·f:i:?ant ly ·, . th~.,- .d~ifk,~ oped ' c ~~-t_i~ii ·~.-:fa:i-l~d mi serab­

-l.y., e-~c~pt· for ,the ·Scan:d.inavfiui' ''c9Un.t.rie.~. --a~d _·,t:h~:· ~eth~rlaxitls ., ,1!. . . . • • • • • • . - ,) • ' •. 4-

t ·o meet · their .fo,rei:gn aid . . ta'r.ge.ts. wh±.-ch t 'I{ey .. w:i.ll~:r,tgly, · pror:t:Ls~d

the deve~opi.·ng . ~~-~t·;r~e ~ ~ :._ If: ~p-~e-:· :9:( :th~ d~~el.~pi~#?i-._; countries .. .. . • t ~ -~ ~ • - · ~ • .

a'tta1ned''•their ·deve.l.opmental goaJ:.s, .i~ ¥a~ · i.n : 'sp;t-be :·._af·, rather

than ·because 'of;,· the ass:istan~p ··j';,.gm t~~~ d~v.;e.io~·~~ c~~ntries • ._ ...

.clii/9 84.( Xir.x:t±t > P~ge L~ -'

·'i'hd· · a:·~v-~"i6':P~ci} :co.tintri~s ··-:t-iact ·-ta:fied ev.en. · to ':~:O:~'O~r-:ithc ·:~. d.€cisions .... ozi · ;tar~r; ::~nd·.- ~oiii·~~rl:ff<·b~~r~e-~s ' for.: man<-~i~c.t~·~· s . ~~: semi-·

~ ~ . -; . ... . . -:: .. -; .. ·' :-· ·:, :': : - ' . . ~- ':' . ... . ... . .. . . . . . .; -· 0

, • ' .. '1

, • ,(: ~- ' • A , 0

:·~- ,o ! _ , 'p lo#" .. ~·-- 0 • , ,..' ~- ~ ' '0 0

~ • 7 • 0' ,.•, • , f ; '<,. 0,

0 0

. ·111a:nufa~.tu~e.s ,. hact ·._exte·nded': r e gulati;ons ., ~ha't· pr.;?Y~nt .\_ 'l;'hird _ · ·: . ·· . • ,, . :,.• ... ...,. ~ .. ~-: ' ' '' , '. - ' ,!·~ ···~.-.. Lk . · '·': .~.·- ::•. ~:.:~.~ ;./·:~::-~.;'·:} .

l'lo~l<l;~ . q'~pqrt.s; ·fro,n b~~l'l.g . . sold: em: the .:·.P. oz;.J:¢i.·. ~.~k:~.t,;,,:· .tp.~~ E~C . l:lad ,. -. • - ~- • , • • • • • • '· \>~ - . ... .... ·:- • ·;. .. - . ~ . ~-- ... "";l ..... ."-·i :'" • • \ • ... , •

!:·ma,f;i~;;' ce,~~a;i.~·· :~P.Cl-t·' e~p~rt .s ·.:r~qil:_l , de~.~~~:?~:r:tg: .~;;~}ir.=:t~i.e~:~ - ~~~'e ' :in-- •• , • • A .. • •• I ) . .. • •

,::;s{.t:itut'..i ... ona·1i.'zed . i.n .. GATT and the k ey object:iv:.cs· -of ,:the .. Second , ... .. . ·. ~~ ... . : ~-~ .... . . .. . -,. . 7~~- . •.; .. · .;:~ .;;. ,; .. · . .'! ...... ·.; ;:'"!:' • ..,

"·D~:v.e·l~op,m_E:nt.~ Da~~'9e ·'jtf~r_e large1.y . ::i.gn,or.eq b}'. tpem_ • ... it . . . . -~~ .;.. ,~ ... . . ~: :~ ( l·" 'l"{ •.•• •

··PROBLEi'1S OF .AID

12: . De sp~~e the ass:;,ri-an~_e~ g:i ven :for . ,a;id .A.l,o,)Ns to·· ·th.a

develo~~~g - .. ~·~:ntr~-~ ~-·-;~· -;;~;:~h .... th~~-t~~~g~~~..::':cd·.::~=&:7~ - ~£· the GNP - . . .. of s.ome:. of ·. the ·· ~i.9her 90~"1.tri~_s:, ..... sorqe .c?f: th~ r;t.yher c~:n.l:!.'l.trie s

.• • • • .:. .... •. • '• . • . 1'- • ·- ' : .l. ~ . . , ( ~

systema tically .:redu.ceO. ~.1-;te proportiq,n-•,:0):' tl'le.i.r to~al income . . . . -- ..... , ... ·-- -~ __ ...... --· .. . ~-·... · ... ;:,·: .:. . .:._, ....... .. . . ; : ;

al.·loc~ted. t .o · "the dev.a lo,p:ing coun.~r:i.as •. ; .E.,,~en, i;h:e11 '.;:o9n.ly . those . . ~ - ... ~ . . . .

re·c .e ip:lent : ·C.QJ:ll!~r:i.e S Which con,form t 0 . . Ce~tai.il. :;>O·li.cy ghideiili.e S' • ... , • . ~~ - • • .. I. =·· ·-·. ·.:·: . ~ ~... ' . ;; •.. l . . ... · .... ; . ; .

of ~:±he' .. !dOnQ.r •"COUntrics received ·the~ aid. Th:i's 'Vias don-a not ~'lith~ ,.. I ' ; • • o -

0 *· '•,• • • •; • ,.: .... . - ;, • " ·: • ' ' ';,;,:7 : ' .• "• r •

-sta:ild:ing . the .. ofi!·e~ repeateCi ,G}..aim ·t~~t di.d · sh9}:-ll.d .be based on a

no~:.di.sc'ri.m:i..nat~ry· 'pr~nciole . . ~ , . :.. . ~ ,, - ..

13 • ·.BY: , 197.7; only o·. J.1%·· out . o1' the ... : tot .. ~J.: go~l · of 0. 7% hatl:

b een ;pa-id.: · .:Th_e ·~~~rst· o:f':fen~er:S ,~~~re, .1;he lforl?: IS riche .st ... · .. .. ' such -as .·the · "Q"Ai.t e d States, Japan, ;Jest Germany: and S :w:i tzerland. ' ... - .... : . ... :

14~ Confr?n"ted w:itp. thc:':s e 'facts; the · d~velop:!..ng co.u..Tit r:ieG

d ecided ;·: tiP. ~ spon'eor ~h~ .R''esolution -~der ~t~m 8 hoping to in-

st.:i t~te' ·.cl1.anges i.n the exist-ing eQ'onomic ru.id . f inancia l insti tut:i-. '• --. - . . ~ ..:.. .....

ons. mo st o:f whi~h had been ·~reated m~re than JO y:~ars ago 1-vhen ... • \ . • • • · • • • • ~! • • ~ • •• •

at least 750 I!li11:ion ueople o.f th ~ Third 1·Tor1d. stil.l toiled under ~ ; . - . -- . . .

col<;mial rule. The-; develo~eci ~ountrie· s ,. wh:ilG . re.~ o~n.;:L sin g the

:f'~ct tha t most . o f the ' deve ioping countries wo re n ot a part t o

the creation o f the ex:is·t:i.ng• e conomic and financial ins titutions,

nevertheies~"refused to a ccept"tno demand :f'or. r eform which the -. \- . . . : .,._:_ .·. d~velop:i1~g ·c'ountr :ie s. were calling :.-f"or ~ Instead: . .. t.~~Y· pre:fe'!'red

: ·t~ · o ee: the: y o\ing :ri.a'tl6:ri's: join t·h'c'··ex 'is'tin·g i:~::;.~~t ut.i:ons >v:Lthout . . h ...... :·· ,.._ •• . .. ""' . . . - · , :-.- . ' .

<;fue~st :LpiJ.':i.ng tl?,e J:;ep;t-esen:t at ivena s·s·: o£ 'Slf~h ·inst:itut:i.ons. . They

' 'f-elir .: t o ·' ~~s'~ ~tili'~ c·ontrof and the do~:inat·i,on" -they ···are c u rren tly . I ~ ~

.: ·~;:e·;.·~i~:irig·; . o;;.~:f; .t he· e?C:Ls ti:hg o"ocdriomic ru;:td f'.inan~ial ·institutions . !•:•'•\ . : :.:.- ;; .-· ._; -i . ... • • · ·-· - t . .. . . ·- . . . -

The r_e~lat:tng · qf' ·~ri. c e-s .... '.of· cBmmod'i tie~-· and the i r s h ipment control. .

. to ma rkets .a nd the activities of' thz Transnationa~ cor porat:Lon s

r e main in the ir hands . Any ,at~ empt to remind them t'b..at: ·::hey ·were

...

' I:,

CM/9 84( Y.XXII1)

P~ge 5

·p~r-t 'to the- Resi:>lut:ion·:'. of'· 'the·:7th Special General As~embly in

1974 which. -adopted t.:he concept of' .the Ne,·r Internati~nal Economic ,, Order·, was contemptuously dismissed -.rithout, explanation.

"'"'':";• ',,·_

POSITION OF GROUP B 1

. ~ ' ' . : •.. - .. •• ,' •• ,::,• w•~C.: '••• , ::.'<."~ ,, •

15·, In defending themselves against the demands :for equitable

distribution of' ,,;~ct1 th from the developed' countries both at

UNCTAD V and before, the ciev~i-oped countries referred- to their

own economio.predicaments,- i.e. recession and inflation ~rhich

they blamed on oil prioes, the deoliriing rates of' their economic

growth; and t'hat at lea;t 17 r.~illiil,;_ of' their ueo-ple were out of - - . : · .. emp:t~yment ··due to thes0 -economic problems.

• -· 16 •. - ,._:cfui:Lc;,, .admi.t·ting that the ~c'orlcl :Sconomy ;;-as i:1. turmoil,

de1:.3'gat.ci;F fr<>m this G:r:oup o:f de;·.•cloped countries maintained that .,_: . . . ~,-

eve= rising oil priCes.

i;:he:· ·problem· _c;d"· ~n.3rgy __ to- be di scusscd as part o:f the d:r'nf't

Re'S'olution that:-sollght to restructure the h'Orld economic situa:.

tion. In the first place, they rubbeq. their harids in glcoe when

some Latin Amer.ican countries led by Costa Ri_ca raised it.

Group B .countries 0n'j'nyed to seG .. the'Group o£'·77 divided and hoped

that the disunity could be diisruptive·:tci the strength of the ' . - '~ . ·•

Group of' 77. T~ey we::c0 rat;tter. ups<;t when Cos'\'a :·:<.i~'~ v1ithdr0w

tb,e demand• ·±nstead, Canada, on· behalf of Group .. _:s,, introduced

a paragraph to be inserted in the same draft-Resolution sponsored

by the Group of' 77 ,J'!.hich 1.1rg~d "all-countries .to take approp­

_r·i·S.te, step~ to :i.mprov~ -.~he .ba'lance of supply and demand for

· eri.ergy, includi~g me.asures to convene exis~ing rGsource:::: a.nd

develop converitional, nevr ·and .~enaw·ab1e r~sources noting in . . l .

particular the neGd-s of' the .l;l,<?J;l.- oil- cieYe.loping c.Ou...'l'}t.J:.:Les . .••• ".

Th:t"s· ·draft was deSi..gned to divide tho deve~oped cou11:tries rather

than ··improve .on the original r.;,solution. . ' .The dra:ft did not get

the stipport· 'Of. ali mem·t>a'rs of Group B. Austria and Turkey . . . . ' .. ·' oppl)_E?.ed it_ :Wh_i __ le Australia decided on ·its. ovm .. drat:t to break the

,,, ••• ~1.' ,, I • ••o .•• ~•·• ',.,.,, ··• •

d0adlock between the developed and developing countries.

.• :· ~.,. ···-··· / ___ -. ~- .. : \ .. ··

·:.: .:::-:--~: ·:· ... ~.

,',• :·. : .. -·. :• .I

Page 6

·(·'L~1,7·.-., ~yen.whe;n there Wel;S a clear division in their rar...ks,

.. , ·;G:rou~~--B,~ Qp~p.t~i-~~ .; {~~i~ted tha t··-'ti14CTAh .v· coUld; ~ot··· af/fbrd to ... · .••.... ·.· .. ")". ··, .. ·. '· . :- ·-. ~ ' >.: . '' ,. . :· ,:·. ·. ., . . . .·, .. ~-.. . ... J?y.pas~\·c~pe .. _9-i.?,<?~,~~~on .. of· ·.?~1 ·priceG whon:restru_?tU:-r±ng --the global cconom'i·6~:.J.:y~-'t-al6~~'"•·;··"' ·ft .:·:1-::·.:·1·': · .. ,,;;.· ... J -:-;:·· .. p.·:~' ;_:;··.

It . ,

:.:~:' ·:;e '':1:-; .. r;:·.:.

· 1 ;3 •. :: J'1ct;~,?~.J::!l. o:f t~.e gr·oup '·of-'.'?7 at their Conference 'at Arusha

,,bel,ieved that .the restructi.1ring of' the ~•lorld ·economic· situation

~ou~Q..:~~~ -b~ -~~~~m~i:L~~-i~d· unless··uNG'fi.b ·s.3.t ·t1p .3. hi.gh-'levol

~~-~~:r~~~-~e~~.~e~.t~~·:. ~~~~p ·Of:. eXiJcirtS'-tt.(o exa~i:te t.~1e problems • ·•· . • • • . • .' . . : .;._ ... ' . :- • • ; • ~ .:- : :. I

-~r.f-)lating to. the ~::1anageme:nt of' th8 .. Uorld''Economy, espeoially ..... ' . ·.· .:

policies in the f'ie~d of tradG, developfl1-ellt, ~1oncy.. ·fu?d finan9.en.

This idea ~-1as .erabod~Gd .in Paragraph· 3 ·'Of t'he {ira:ft .He_solutioh.

19.

f'sr0 v~it .. h thG .internCl;,l affairs·· Of~~ sO:Y:ereili;.."l. stat-'e.s.i. .To counter

the Gro~p of' 77, theY -=sp'?~~~rsd •two- p'a:Pers, .. ·-tho· f.i-r.s·C· .. :vievled the

wor19-. ec?nqmic si tl.'!.at'ion · bla.nli.rig a1:1 t:i;le ··tiurr~nt·····ecoriomic ills

Of."l the enc~gy crisis. The se~ond tii;lper. argusd. tnat ·.the ooreation

o:f expert~· :..oul<l :O.ot ):>e· the .·ans,;rer. Pro-o:f a high leyel group

blems should be reviewed. from ti~'e to ~i.r.1~ within t'h0· existing

e~9nomic insti t_ution~ ~vhi'-!h are cape..bl~- ·of b'eing ada::pted to

economic reforms. •'

They could not ~ee the utility of. making the

~d h~ Group of ~xyerts serve as ~ advisOry body ·to· the Trade

and Development Board in preparfil·tion for the Third United Nations

DevelopBent Decade.

20. Th0 actual reasons why Group· B ,rGjeCted the -~<i_.l!_oc Group

o:f Experts was that they disapprOve of being supei-v:J..sed by a

watchdog machinery. They suspected'· that the membership was like-

ly to be loac1.Gd in favour of' the do'tr·31oping ·coUntri-'es and pro­

_bably :put th8ir countries i:ri the dOci~ fo:r the ·currO~t economic

proble.rns.

r·

.. · .. . .·C,

CONCEDING TO THE

21 lfuen the President o:f UNCTAD V read out that the draft

Resolution under Item 8 of tl·w Agenda had been. referred to the

Trade and Development Board due to lack of concensus among the

\

CN/934 (XX...."'II)

Page 7

negotiating Groups, Group B regretted tho failure and stated

'that it was "noi; _du"' to_ any lack of goodwill on the part of their

, 'participants but _rat,her_ t_o the :limited tim" availab,le to us in

our attempt to cast dif':feri::.~g conceptual approaches together in

the· same mould and to th-3 d:i,f.,fioulty of deciding ho"r to deal with

c.ertc.in key issues rel~t~d- ;;-~--trade- a,-;,_d -d~vel'C>';>rrrent". They rei­

terat?<i their b?lief'- .tpat peopl<;' today live in an inter-dependent

world wh,e:r;e the, yar:i,ous economic· problems 1;ere interrelated and. '

yonceded that 11 the world was und.ergoing a dynamic proc;::ess of

-structural adjustment 11hich ought to be- fac-iiitated 'ir{ the common . . .. - .

interest". Group B,_argu?d: that, in fa<;it, a bread agreement ha'd

be.en :rea9hed ~on_ ;id~as, embodied in the draft :;:{eso1ut{on~ under

Item 8_. X'hey .. C1f:t:imed -to have ob~erved ~a ~~ty of· p~p'Ose between

... -.themselves anct other Groups in the field of -t:r'~cte, . mo'rietary' and ' . . .. ' . . . ·financial relations, "C0-9mmodities,. a,;sriculture, erie'rgy· and the . .. . ~

· tr?ffi.S~fer .o:f re_sours~s and of technology. Certairily, this 1•ras ·.. . :·n·ot- O::onvincing_ to,t;t'le Group of 77 1;ho ,.rere :fully m~are that a

'mor~ formidable battle lay ahead before Gr~~p B c~untries could . . . ~C9ep:t_ t~~ ~e.~.tructU;ring of the e*~nomy. Th~)r :hoped. to see the

Trade and, De:v,elopment Boa,rd cor..tin~~ to sttJ-d}_' the p-roblems of the

World economic situatio;:t b1Jc!: not to. mal~e decisJ.-ons _which would '. -

iinpel -Jhe.indttstrialized countries to change their present econo-

mic systems .. . ~.

THE POSITION OF GROU~ D -.

:,. • •• <'! .. -;

:22, Like all_ other Groups, Group D believed th~t there •·should

·be economic, restructuring in order to have. an equitable destr'ibu­

_t:ion: of the 1vealth of the t'lorld. The-y_: _'7r'gued tbaf _the conc'epts

in the draft Resolution merited their support. B.ut they vrere

irritated by th9 :failure o:f_' the Group of 77 countries to indict \ - -- -

"'the Transnati_o!lal corpo_rations which they thought were immeasura-. . . . ; ~ .

bly respons:ible for the lvorld 'economic turmoil._ . ' ; . ~

· 2'3. At the close of the Session on Ju.."l.e 3, 1979, their spokes-man regretted that "the Conference had not been able to take any

subs_tantive action because of deep di,f'f'e;ences betwe-en Groups oi countries in regard to the present trade situation~irst end fore­

most, because of differences between the devel<i>ped_.'and -developing

countries". The Socialist countries.of Group B hoped that the

_,·.·

~ ·,. ' . . ., ~- .....

I. . ·'

CH/984(::ouan) Page 8

,, •·· .. ' ·.' ... •").·· ..

!l situation wo.ul·9. .. ~ c~ont:i-n,ue,, to .be ,r~onitOred- ~d .review~d .-tL.-.l.til

ihe~e ·l·ias·. econo::d .. c. ~e,c.O_lo~istt~i6n: of' -th~ ·dev~lo~ing cOuntries. '. _ .

. . , ill"'l.GUMENT.S Ol" Tr:E' GROUP OF 77

24. :The Group· of 77 was not:. surpris-ed to see :that- Group ,c • [· .,

B re-jected the· iil:ea's ·in the: draft ]'(esol;-rtim'l'~·-''::I'hey 1-1.0re

. equally ·.lin-impressed by the e·scapist. "'::t:'gu.-nents .·.o·:e Group D

which amou."lt·.od: to sitting on. the fence·.· Tho': Grot;!? .. 9i' 77

_·argued that the· IIevl Int_ernational Econor:ii:c _Order 'muld bring

'advantages to both the -developed &"-d .·_developing coun_tries. If

the purchasif.tg .power a·f' the Third· Ho:cld;;· -r;;Jas increased by the . - . .

Prices Oi their eXPorts or by increased 'capital ·tra...-risf'~rs,

this .;·ould v/elL .. -produce an effe .... tive demand i'or _go·od_s in the

·1-lorld as a whole·. Th2 short sight~9-.,nationa~· ~oi:Lcies of the

developed ·coU!).tries h8.d bee!l. resr>onsible f'cr.the -soaring trade • .•!:~

defJ.._ci ts, stagnant growth .. rate,, pi~_i'":q.g _of· fcreigrl debts &L~ ;}.: .· .. . -

·.c-deceleration qf 'the ;--dev;el.opment ~17.C?~~ar.'lm~ :re~u~~ing in absolute

poverty l>Thi<?h is likel:,>- to pervade ·the majority of' -nic human

race :for se"ver8.1 years .l- ~ ' ... o ·_Qome. . •'

; . . ~,

25.. The d_eveloping cou:n.trie:s we:i..""'G Q·on9erned: t:P..a.t_, · since

illJCTAD I:..V in Nairobi i::-1 1975 a very s.liiht mo~eciiaTit· has been

,experienced in the transfer of technoiogy a_n,d in 'tbe solving

of debt .problems. ·Only s,_,.9d,en, Canada, -SWitzerland,-' Netherlands, ; ' '.

~oW Zealand and· Britain. have. had, th.~. Q~ouY.~gG .to c~cel debts

according,to the·. decision of'.T':r'-1-dG and.Develo,pment Board, < -~ -·. ' ' ... '

Jv!os.:t o~ the' progranmes designed in Nairobi- on shir:>~:Ping, multi~

l t - l • d v ~· t• . t t ~-a era -era e nebo "'1a J..on_s, ass:Ls_ flit.co o t..l).~ least. developed

&J.d la;.1.C-(locked a.T"l.d developing .island countrie.s., rilanufactures and .1· . '

semi-me..nu:f'acturcs, t ,- ·~ td. ~· d't" .11.'? J..n~.t_egra e · progra~me .. 0..1.. comma :1.. 1.as, . • .• f

had produced :frustration rather tha...'1..rCSUltis-. - '• .... :

- . 2(5... .The Common Fu.'1.d which ~ras. re.gar,d~d; as: a.n achievement

altered radJ..cally :rrom · the' -original 6!10 concei v-0{! --:rn· Nairobi.

lt had be_ep hoped that ·it-:wpul.d.· steti:t 1dth ,_· capi_tii.l of US$6 l:)il­

ii._op.. -with a -purpose to sta.b_;il:i;ze th..3 .Pr.ice:S o£" .. 18 '-co~'!lodities. _,~ . ·' '

;J?]1,G. ,,"._9-pi-ta;L :W.ould. be raised .. d:iqce·ct.ly :from·:goitermci'ent contribu-. .- "I l

;;t,-io;ns;a.I?:Sr; :J,;oaris_.pn international markets arid ~ould act;,,_,, a

.c9-talyst in encouraging the f'.o:rmat:tcn of' a number of new ~-··' ·~

;c_p_mmpd:i. t_y agr~.ement s. The agp_eeme:nt reached over the Common Ftmd

• Cr~/ S' !Jit (XXXIII)

Page 9

in ·Geneva in- Harch,' 1979, !left some o:f t:C.e developing countries,

particular1y those from·Affica, disappointedo

27·:· Th~ f'ii'lal -version of the Corru11on Fu...~d had e. lo_.1 capital

based o:f US$4-00- m:LLl]:on for buffer stocks a:r2d U$$350 million

for other mGasures. Although there was a rcasonable'response

to pledges at UNCTAD V to the. seoo·.:ad- windo'l, the developing

countries remained doubtful i~ the ~erget o~ US~J50 ~illion for

the second windo1v Hould be· achieved s.:.ncG only us:'~70 million

-svould. cone Iror.'! dir·3ct ccntributiont? by g~-y-ern:!1ent S.

28. Qf the 12. ·commodities originall_y intended to be covered

·-·u~Q.er ·t:1.0 'Integrated Pr?gramme o:f Coo.modit.ies~ ,-o.Uly f'i.vo.~ cocoa,

coffee, tin, sugar, olive' and olive oil had ·been covered by the

. ~·-~:~CAS.. .. T:.1.e::;-~_ . ;!.§ _____ SJ_OE'!E: .. pr_of;?i~ing moverac·n:t on rubber· but this leaves .. ···- ~-···· ... - ... - ··- . .-:.: .. :.._

12 coomodi.ties· out sid.0 'tlic I8As ~- The lack-. \;).:f progr0ss i:n this

~icl.d was due to the irit:."~!.Ilsigence oi' tb.e consumer countries.

~l'l;e IPC we.s duG tO and its prep2~ratory "tv-ork by l973 Qut it ~ad

to.:~e e.~-t''c~ded --t~ t:-ie·· end of· 1979 ~ f-J'o 'tal~s · hev--a be.en held on

bauxite and bananas a1J.d r::.o likelil'Hood· o:f .agr.-3eri'iGnt b0~ng re_ached,

A series oi_' r)roblen1s beset procluco::-'s o!' cocoa, cof'f'ee, sugar a.id

tea bGcaus-a tb.o pribes collapsed :fror.i t?::-;eir ~eal~. of' '1976/67 o The

prices of t.in and copper went through recession in the saoe

;period when they :?e-ll belolv thG product-ion lev,~l .•

In 1.978, countries p~Oducing·bauxite could-not agree en ' '

their own price fixing ~:>ecauise Australia i::n.sisted~ that the new

poJ..icy v-1ould intimidate :consuffie·rs. Aust'ralia produces 427G 1;hic:h

made i-t diff'icult for other producers ·to defy A'Ll.stralia 1 s press,.Ire.

It co.uld bo suicid~l for some producin~g conntrics to sti.ck to - '

a co11ective approach because they depend on cor.Hhodity exp"ort.

LE~EH.AGE OF THE GRq_UP OF ??

30'. Even be:fore U:NCTAD V, th8 Group of 77 had recognised _that

a ·unit:ed .approach yielded dividends. 'l'h<> oil 1-;eapon in J.973, the

price jump o~ sugar and copper in 1974 ru1d that of cofiee in

1976, underscored the need f'or un:L ty in the Gro.up of 77 and

revealed the vulnerabili. ty o:t the developed countries. The fact

that the devGloped cou.ntrie s arc scared of' the power of the

• >;

C'l/O'''' (v"'"ITI' "'· /,...,.t-, ..('>..J--:....1."- - I '

Page 10 ~.

''

. .

21att:irials ~ the United· Stat-es is· ;Piling Co:_Jpe:~.-:-~ oil ::U.""ld ~..,ubber;

Japan copper a.--i.d :·Je3-f"::Uer:nany coppe ~.

3'1 • On the · c]iiestim1 o:f· oil, the deve'l:oping .countrie.s rejected

any att-ampt by the G'rq·~:;) B.-countries .to disc<J.s.s it ·<?-t UNCTAD V.

They maintai:;,1.ed. t!lat t~1.or~ ·1.-tas a 1:-.oru.·n, OF'~C., Tlfhere 9rices of

oil are discussed.~ r·: ThG. Asia."'l ~~nd __ th9 Afri·c"an1 .c,o~nt~ies rejected

-the ·clairn ·oy :Group· B ti1at oi.1 yric~s t;.Toro largely r~pponsible

xQr tht3 pres-ent Uorld economic C:i...,isis ~-- ·On. tl"'!o co:lt:rp..;-y, it was

the wastef~l_ha::,its of the devclo:9ed couatries in-thGir use o:f

energy that t,vas partia:lly :res·ponsible :for the currant: c~isis ..

·.About fo countries of. the ~/estern Vl::>r1.d consumed -70~-· o:f tha "\iforld

·energy and the·· Un"i·ted States alono ·consu.ued JQr., o:f th:i!s energy.

They dismissed e~.s prepoqterous ·the argu::1ent· of' some ~Vest ern

cOuntries that much of tha ene~--g-y consumed v1as spant on producing

food and wachinery exported t.o th(~ developing_ COlli.itries.

32.

DIFF!:<:RENCES IN THE GROUP OF 77 ON TEE AD· HOC. COHHITTEE OF EXPE~=tTS

The Asian Grou~ wru1ted to see the ad hoc Committee , r.. - • • -•••• --~•--•-.. inter-governmental Group o:f. TI:xpcrts <Thich would exaG],ine the pro­

blems relating .t.o the manago!J)ent o"Z t4e 1-!forld Ec<?_nomy turned . .. •, . . into a permanent machinery o:f m~CTAD ... It ]-Tould submit a report

about its work-.to the ,Trade and Develop!'"c.nt Board.

33. The Africa.~ and Latin American Dclogntes stuck to the

Arusha decision ,.;hich stated that the aQ. h·;:>c Grouu should have . ····----·-·. .. T:qey insisted that it. ··sl-ioald; net· be porma..""'l.ent

];Jut that :j.ts mandate could be rene"'ed as the exigencies o:f th-a

s_i tuation required. After .hard, bailga:in:ing, the Asi·~~'i Group

joined panks with ot~'le·r member(> of' tl'le ·Group of' 77 and accepted ' . . ' -

,t~a t it should not :,_e : J?.ermapent. . D~~,!):i__t.?'"".(;i;~ir un,itod ao:>proach,

the Group of 77. :fqiled to get. :the developed countries to adopt •'-'

.Mucl)..,to ~b.eir_ragre~, the di-_cift

. . . . . . _. . . ' ' . . . . ~ .. ; ~

the draft Re-~ o~ ut.i:.<?Jl_. Resolution

'"as referred tc the Trade and :0evelopment Board •.

·'·

·' ' .. -:'"

CX/984(XXXIII) Page ·r1

P~ACTION TO THE FAILURE OF TrlE RESOLUTION

34. Following the armouncement by the President of the

9oJ2ference _ tlvat, ::it.:.i<J'Ii.\:1 .been: d..ea.ided>uho. re&.er tc<e dra:ft.

·Resolution t.9·. Jlw,,Trad?·d>pd DE>V:el.o.pnient·.lloard, the· spokesman

for the (}roup,,-<;>f 77 re·gr:ett.ed .that it was. not possible to achieve ' . - . -

concensus ·,m s'uch i:npor}W?-t i_ssue. He pointed that the Group of ' 'e

77 attached .. irpm_gJ.l.se .. ,s.:i,gn,:i,:l;'icance tp ' . . ~'··-~·~----:.::;.;;,.::.,:~:-:,:.•,,· I . .. .

s]:li_ft ,il)- pro.due;tioJJ..,and ,consumption.

the _sJ.:;ructura+ change and .a

Ij:e·".stated that· the dr,;cft . I

Re·solution cmbodieC.~ .. ;i ... 4eas of' pom,e ·of' t;he -~~port~-t Resolutions

th~~ h~d been passe_d at the ,Gen<f:r:al 1)-ssembly::bY_ concerte<;l <?ffort ... ' "' '--v>-~-:-· .,- ,, . ' j

of<'-ll _:mellib,er~, ·"He ·rtd.terated .that ·ine pr~serit 1>Torld economic ..

crisis ••er:O the res'ult of th~'·failure of the developed 'cnuntries"

to control inflation, unemployment, etc. These problems were

eventually passed ''ove·r·· ·f'o the · deve.l·op±ng countri~·s. ·All these ' ..... 1 •

problems "ere interrelated: ·'ft ··,,as furtila· to sol.;:e one 1·1hile

-leaving the othGr'·getting. out .,~f ccnt-~ol; The purpose of the

-North and Soutn' dial·ogue at '1JN6TAD Conference was to find solu-

ti-ons:·to·'those"·economic prob'lems. He ><as surprised t'o ·see a .. .·1·· .. '

shif-t "in policy on tho issues that had been achieved by the

7tl:i- S!Jec:i:al Session of the ·cet\:E!';:al Assembly ·-wriile 'ffiemoers pro­

sent at UNCTAD 1i continued to argue "·/;hat the'X:e" was no difference . ,,_-:; ::r -

in approach between the developed and the, developing .colli~tries,

35; The' 'Grou:;> of 77 had believed· that the· study' o:f the act'

hoc International Group of Experts_ "ould'produce recommendations

that would bring evolution to·the present .sys:f;em. He was indeed

shocked to see that this was not only dismissed out of hand but . \

that attempts "ere made to divide the Group of. 77. --- ~- . . - ·-

36. ''The Draft He solution will' be· introduced in the Trade

and Development Board as seen as possible. This action will bo re­

peated until the developed countries accept the idea of re­

structuring the e.forld Economic System.

·.~.·:

CM/982(XXXIII) P::-.ee 12

Item ·9

Pro·tectio~1ism

Protectionist tr<.::nd.s - proposals by" d:ovclopin;,-; ·c"ou'ntries . ! ~ ..

. · ·as:·:conta.ined .. -in the- Arusha. Documant ·

:F'ol~ s .omc . ye:;>.rs . noN, the rolati v<:.ly .. liberal tra.d0 policies o:f .... • . t . -

devefoped_ market econOII\Y COlUltrios gnve ~'Icy .:t.o. gonerhl :;>rotcct.iopi::;t : --:

meas~cs•

. . . 38. ···As- pointud out in tho ilrll.Shc:: ·:uocumon~ r these ::;>rotec_ti~l?-is measures

:, . arc -particularly· d9terimontal to cxpor·t\,; of clovolo:pin0 coil.ntries in scc·t;ors

i • • ·. • • - • • • I • - • •. : • .. ~; '

·titilizinG··!;h0i:r. -'ol'm ra\'J ma tGrials a.'l:l skill in areas where the _comparative . ~ . . : . . . ~ . ~ .r J .

advan-t'agc ih3s developed ill ·the ir favour ru1cf offqred. thqm grea~ prospects . ' : • •:, "' .. ~o ·- r , .. :~· J • ..,.. •

for ind.ustf-icl expansion_ •.. They :uiop-'.;, inter alia, vqlu.>1.tery ~xport restraints, .. -· . • • , . ·'· .. • r f' -~-- • •• • : •

non-tariff ···barriers, .trade restr~ctivo ·m.~~suros, the; .se_ttine _up ~c;rtels in

developvd··coUll.tries: to restr~in trndc o.tc~.

'39. Consequently, developing countries have prop~·scd · ~nd· planned a.

three-pronge d co-ordinated action to resolve th~ problem: _.. ' ..

40 •. Long Term l\Ieasur.)s: It ~-1as recommended·· t.ci adopt ).:ong-term policies . I . - •'

:for. 'W5J:r.ld i!ldustd.a.l restructuring. In thi5 connocti~n, an~-i~ order to .. I

s e t .up_ rat :tonal production patte'rns in the \'lorld, t~t3re i s. nee~ to idon·&ify

in the daveloped~countries sccto:rs requiring adjustmont in order to facilitate

the ··movements o·f factors of pr.od.uc·l;ion out of such sec·cors. ~d._~n developing

countries the sec-tors deserving special encouragement ~d supp~rt .l'li th a . '

vi_c.,, t~ ac~eving the · mos:t o:fthcl.ive international inte:z:--.;.:i,nclustry' a.nd intra-~

in{iustry. r~>pepial.izatj.-on.

Cl\l/984 (XXXIII)

P::1ge 13 . ,., ,,, . , ....

41. To .. this· orid., t-hG follo;;ring moasuros were propos~d by Qcveloping

countries:

42.

(i) f)Gtting up of :t mcclian:ish1. ;,ri thin UNCI•J.I.D ;-:hioh lmultl 2.llow

for periodic i'evie1-1 of patterns of r:ro..::.uction <md trado in

the \.;orlJ: e~Cnomy and idont"ifj ··sectors needing structurnl

adjustment 1-ri th n viov.r ·to' :ic.lliGVinG a. better internation-al

division of_ labour ::!.1tJ.cl -lir3l1.sfer~·-of i-)roduotion capaci ti0s

tp U,ove~-~ping countries in the light of thuir compar2.ti vo

q.Q.va:J;?.~ago end ~1oeC:.. .;;t:O'· promotG. prdcessii1{S of ·(;heir raw

tna.terials-.

(ii) Est&.bJ..ishment within tho frrunpl·mrk of UNC'.C.Ll.l) negotiations

·to .-fa:cinulu.tc, ·on .. a soct;or2.l l'GV:ol ;..t.ncl, in co-operation t'l'i th " : .·..-.

UNIDO, ·and ILO, in:iustrio..l restructurinG mc<:::.sures ':.nd policies

thE>t·ncod to be cloptod by dwclo:pod countries.

(iii) ·con.St'2nt moi1i taring to '·avoid d0V0).0l)ment of oxccssive and

unGoonomical cap<.J..ci"'Gics in c1ovelopcd countries 1.vhigh lco.d

to demand for protection. ~;.; .... : -~~-·

(i v )_ )te~tl;'uc~uri:!.llj ,1.1orld trado ill.· order ·for dGvelopin[f'"countrios

to uttain. ·the ti.lrgqt .. of 25 per·· cent· t~h:li:c 'in ·rr.c::.rnifactUros of . . .

· ...•. . 1-mrld llro<luction as 1·1ell ::-,s 30 ·!)Or cant of world 't'i:·ado in ~ ' .... mcmufactured g()ods by the year 2000. ·

Shortt Term ?-Ioasurcs: It Has rocommandud to enter,: ·i-nto: nn agreement

'·with. devG.lopell>countr:ies on the following poin;i;s:

•• -I•

(i) Dev-elop-ed countries shoulcl remove nxisting restrictions

they impo~cd. against CJ:::J.')ort;; ofjipyclo.pine oonntri0s . .. ··- . . . ... ··---~---·-·

··',:;:[tb.i;-tho shortest possible tirno. '.'L ':.·,

(ii) Developed C_91.ll1-trios should implement flJ.lly and -v..c:1.1.ore

strioti;/t~ th0 st'·,,X,:iistill provisl.ons thoy h::1vo ::1ccepted.

concerning imports from clovolo~)ing countries.

,., ....

, __ ·,_,_

·,:_

43•

·'.

CM/984,(XXXIII ) Po.ge"i~

. ' :~-

···(ii·i) Safoguard n.otion _bY .dov~lcli.)Ga COuhtric\3, · if b.Elcea·a·ar;r;

" should be E'.pplied undGr s·triotly. defined

~~ndi:t{oll.sa:ndshaid 1:6 oUt or···k~9rosoon and sudd.0n

dev0lopment. ·'· i·

(i v) Dcv0lo}.JcJ. _conn tries shoulC~ oliminato to..riff escr.lation

so ·as ·to ;l?!Ovicle more iinproved· ~'1 .. qcoss to eXports of

manufactures ancl somi-mcinufacture~ frcr.l the developing . . o_ountries.

':.;:

(v) Hooourso to il}tcnzivo us8>~f1 .:~~-~-- PJ?OSCnt mochnnism anJ

those ~~hich may be est:J.blishqd:: 1·h thin tho framework of ! • • • . ···-· .

Ui~Cr.VAD for survcil1ano.c· 'of the prOtectionist notions by

thej -developed count·I-i·6S·; cmd to; strcngt_h~n these moohn.nisms

as. Well as ·to u~!t:J.bliSli ·.ul/in·Gcrrla:£iOtL~f..'group of exports . .•, ·. ··- j .

to e·xarnino·, on i·Gs iri.i tiq.tiye:_, .Jach specific case in 111hich

duvcloped dountl-ios Etdo}Jt :prote_srt_iO.nist measures p.g·ainst

imj;Jorts by doyoloj)ing. countri.c.s',. especially 0GO fincl out if

thor.o .- .. an~ :/\U"e~mt·· p:tc:n.sur0s .:i,r.;rhi"Ch p_rev0ntll the .:1voidanco of

"·'·Uliit:' mu.asure· o..g':J.inst; the impor·Gs~;~ ..

· .Jojnt . A"tion . I . .. . <,, '•, '· •

Tho Group 'doolar?d tha;~ when fa~e-d: .. -tttth 'p"i'6POSed or a.doptcd

protoc_ti?l~ist measUrGs· by a clove loped country or group. of clcvoloped cou..lltrics,

that .. affoct the oxpor:Gs of tho devolcpin{s countries,· including tho conclusion

or extension of voluntary export Nstrain ts, .~li thout do-trimont to rm:y bi-·:.:;·.:·

lateral notion "tht.""t·G. it de oms or thoy dc01.n e.dvis_q..Pl.D, m.:1y consult v1i th other

interested cluv·Jlo:ping .countries 7 l'ri.th a view to dcto'rmining n.ppropric..t0

joint action.

DEVELOPED COlJ3Pl\1IES ·ru"]fl.C.~IONS 'L'O ·.::tiESE ~J.i?.OP6SALS ... , . .-

44· .0cvclopo;l coun"!:irios re,jectecl a.ll theSe ::s~bstantial measures intended

to check protectionism. Tl1Gir c:,rg-uments onn bo summ2..rizGd as folloNs:

CI.Y/984(XXXIII)

Page 15

(c.:)'"·T.ti8y·1.!'e;}doteci"'tnb·· idea of '1ino±-eased prot-kctionism11 but

cigre~d:_~·:iJhowt:iy~r, ::· iflat· temporery prote-ct·i·o~i ~-c measures

·~~e'~e-~·tken espec:i.al'l~·-··1J6'C~us~ of) ~he cti.~r~nt intcrn:l.tioncl -- - : • . ~ . . . ; -. ~ ,~ . . .. :r ,.! .-e·c-onnm~c ·cr:t.ses ;.·· ·They s-trcss8d . . by !)t-tot'e·<:;t•:i:9'ili st mcnsur~ c.

(b) D~y<:iiopod countrj;es end~avo·urod to p~ntrol protoct;i.onism - \." t ~ ·: • • • • • • · :· · . _ • .. ' .,

but regre-tted tha-t d.ovu1oping copntrics did not AClCno'wledge • . . _ ·- " I_ . .. \. : f .... - ; .. ~

~ (c) .TP.ey: ont.:::gor.ically r9jeo~u~:.the i~~a thg.t ~orld i.!ld.ustrial . '

restruc~uririt':"W'6.s the n.ppropri<:!:~e cure for :protectionism,

3d.tt~i: ;~l:l.a;t :this wa_s _pnly one. a;nong -~~ve~p..l others';, -

(d): Most: of tlioni h:ave .. nev0r favo-ured the ·targets fixed for

davel'oping countries ·co i.ttain 2·5-'·t.>,)r cont share in

inanu:fact~es o~ 1.-:brl{t r>i-6d'iid-tio~ ~s wall as 30 par cent

of world trade in thas0 goods by the year, 2000. 'i.": ,.: ;: .• ._ .. . . ... . / ~·: ._; ~ ~··L :·;. . . . . .. . . . . ... ! .J

(e) rr·hey rej.octed .the --.propos-::?.1 ·:to set ·Ul)~·a mooh.:mism 1rithin

UNC',llAD· 1-1hi.ch w.ould allmv for .-· period .. :Lc revi.aw o:f patterns

of production-. and. tra.dG~- -in t ·ho .. world ·.bconorey. r:!:hey opposed o • • I

the:. ~s:t.ablishmcnt, of ne1v me chmlisms- or 1:1 new body vri thin

UNCT.A:D·,- _arguing ·tbat~. l.JtrCTJilH.e role -is one of oonsul tation ,. but not o:f decision making-. :: tr •': -:..• ..

('f) Rcfcr.ring to· shor"f? i;·ai-m mcas~G s dGs·cri b0d in partlgraph -l2, . · • ; r . .. . ...L. •

the 6rOUp OI dave lopsd COillltries expressed g~ca~ Surpr1S8

tli~t lJroposai's ·\~hose d.iscussions, recomraer..o.e.tions or

decis~ons )·~h~uld be h.: ... "ldled :ri~tu;ally 1-1ithin GJ~rT be . : : ··. f

a.ne.lysed <•Ii thi-n UNC;_::'AD. .ThGy a:::'firme.d there:fore that

there· ~,ras dUi)licat:i.oil end ··tha:t · 'th'i·doveloping coun-tries

wantod t·o· assign UNCil.AD u. h1a.'1.dll.t~ -;.vh.iQh :..lid not relate

to its func:tioi1s. ;!.'hey therefore cu.lled o:;.1. .:1-ll countries ' conc•.,rned to r efor ::~11 these propos~1ls -~o G.ii~.1'.i.1 tihero t hey

were under discussion.

- ,,, .. _,

45·

\ .. ~. I

CU/984 (:{XXIII) Pege 16

• ,. (g)· RcffGring to· the joint' a?.-~~o~ r"'commondod tinder paragra.ph

:. ;-.·· ..• ' ...

7, dcvoloped countries ucro surprisod to note that the ' ·~· ' -·

'd~.;,oJ.'b~irig"o-buntries' wa.nte:l to" use. UliCTAD 1 .a world organiza:::

tl.~i1,<to lln.dCrt?Jq:~' n. conCert<'i(F'cn1d :c·d~ordino:ted notion ,-,··:·· ' '

· ~.iairist; o.nothG·r group -of Coiint·rieS·-~

• _(. (• .r ., ..

1\.:ftor long and pat'iont no;;-otin:tions'( UlWl'AD V adoptei R.:Jsolution

TD/L::i88 on Protectionism :mel StrucGur<'l.l ,Arljus~:u:ont~. V35-uely propa.r0d c.nd

mostly· in tho form_ of -rGcommendatic;ms r-:>th(!r_ .than dcoision 1 tli.is resolution

lacks the substance of ·i;he pro:_Joso.ls coni:ained in tho Aurshe Document •

. , (a) 'J'he resolution admits that structural adjustment is a

•• ~ ... rfY ·. ~ .:·.: .::..:: : --

'J(.

.. . , .

i: :·

.; . . ....... ~. . -·

.~ .. , .

constant and global phen~mon;n ,.,]~ioh. trio international

community should: fac~litate th~~ugh' concerted efforts .

so as to attain an optimmn Over-all grrGwt.h.~

.. -.. ._:" ,: --· :·-.: :. (b) It therefore :l,c9ide_,_,.to entrus.t. ;l;hc, :J'rade and DevGlopmont

. -·· • .... '.1. .,;,,

Board to orga.11~ze, in n.n a.ppropr~u.tc existing body, n.n

annual revia1·1 of tho patterns of prci<luct __ ion 1 and _tradu

in the lvorld economy. Such rcvi~ws··'shoula:' take into

consider2..tiori tho ro.leV~t ~v~la.hl~:·informn.i;ion indlud.ing

gancra.l poli cics in order t~ proVide. fnctUc'-l and anlytice.l

b:wkground .of .. (il~bal trcncls ~~f product-ion, imports .and . .. ·'· .; . '.•. . . .·.~ .: . .~t . ·.. . .:...:: ::;-I. . exports with a viaw to iden·b'ify:i:ng elom:mts of or problems

most reley .. ;..l'lt in the ii"gh·t" of the dyn::unics of compnrati~o

:l.d.Vffilta~G· ·to the attffinrlle"n·G· of ... ~o;>timum ancl over-all economic

growth including the development· and divcrsificc..tion of the

cconomiGs of developing countries o.ncl &'1 effective

inte·rlit\iiOnal division of la.boUr ~

' .. .·.f i ·.

·":

~ __ :.: CI>!/984(XXXIII)

P.3ge 17

(c) N~tional governmcn·~s .sl1ould consider this• :tcvicw and over-

.:.:..;_:;if ~"h"~t~i'-;aC"O·mm~nd!iticins:"thbTeof: Developed countries

should :iwh:tt;;.'!ie tb" ·,l;io]:'iti"bn· of nm; ,,olici0s c>,nd streno-then

0X_istint; policiGs t_yhl.ch Nould cncour2.gc tho elimination of : . .:. :/(!! . ·.•. '.... . ':{' ,.,. ..,.. .

non-cop0ti ti ve lool11-factors of· prod\ldion espeoialiy··v1here .. ·-

th~ ,:·lo~:.:g_·~crrri comparcrGiVo ··nd:VaritagG 'Ii-Cs in ·favoUr·· of develop-.... .. ing COu.D:tries 1 thus :;,Jrovid.ints ih:tih• c.lia; l'a:rger export

··' p~s~ipili tio.s to dev,olop~l):,S coun·trios and contributing to ' • . ""' .. . . . • .... . ~-. '.! . . . • .• .

the a"lit.:~inmont of thcix de:velopmont objectiVes. • ~ : . . . ; ·: ~. .• . : .. • ! :·

. J,q."! :!.1h0. ~~:ve~o~!ll9!lt a..~~ str.?~~~qni!+~ t·?.f. su~.h ~o~icies wo~l-~ .. ~ncouragc

the'. rocl~P,l9Y.IIJ~n"f1.;..8~-;~9-~ i::du~·.t;rie$ .ofi~Ghe .J.oy~~oped countr'~e~ .. ~flioh are .. ; .. ·' -

.. :1gss. ygmpv:J;itiy,p ,internationally. to developing countries thus le2.J.ing to • ' • •.. i!'l ..... ,. - .• ' '.. • .. .. . r . ' ,• '•:·,'.• ~~ .. ;

structural adjustmqnts in the forme.r. countries and a hi&;hor decree of ·· .... utilizl':tian· o:i?"hwnan fuld mi.tural:~.s()urces in the latter.

. ;,, • ' J, ,: :.. :~ .: ... : · .. :·. \' ~ .... :

,Pn .sh~r~ .,te:rm v.olioi,es and,:m~.asures 1 the .resolutism rc:co,mnencls

sustained rGsistance a;pinst protcqt·ionist pressures a11d o!1lls on developetl . ''•··'•.

· cotm:t:r'ies: to· implc~crit ·fully and a4ri~r0 strictly to tho provisipns .. of the

statu quo·concorning ·imports·from ~oveloping-countries. •: .. /. \. . '}::...

ill'JCTAD _Se_?z:qtn.r;r. Gen"IJa.l as ~1ell as the Trad:e . c.ncl D\'J:'"-~opmen:t;.

Board arc further called upon to continue

restrictim1s Md non ·onJ:>iff barriers >o1ith

reviewing. clovo,lopm~~ts in tr.::~de '. '.• ,, ·, ~' . . :· . . \

a viet'! to considering and making

nppropriato recollllllend..-,tions on the goneral problem of protectionism • . . . ~- ,;:. : .. ·•·· ...

49· . Devolopcd countriet> ar<3 furth!"r. requostc.o_ to con-tinue their efforts

to .,eliminatG tariff escala~ion so. as ~Go provide more. i;nproved ;:,coess to

. Gxm_o~:t~::o:f m~ufactu.re~: and scmi-m;;m.u~a.otur.es 1 in particulai- ·thOse from I ·~ ' • •

... the dovelopin,0 .countries and to eontinuo consultations on ·ohe subject in . '. ' . . . . . . ' . ' ~ .. ' . ~· -·

..;.·.· ~: ., '.,f' . ·:

....

..• :J..\1

~ . . · ..

'' _,, .. . .. ::· '·

....,_ ... '.·

, •..

. .. .. ~ '

Resolution 'I':U(T,l68 on F.rotectiohi m

' .: ·:·.

··--,._ ... ,· ',

. -.···-

Cl!/983 (XXXIII)

'Page 18

As Ui"ldVrstanJ.ing or bom1~romiso. wo.~ :)i~dCtic~.lly impossible on this

issp.c r ..luhq d.e'!oloping countries lJl.,esont-:3d. a <Lrn.f·t; rO, oluti.on on arrotcctionism

in tho Services Soctor 11 and insist0d. on a vote if ne essary. ·.;

·. J; JiftGr ·a :vo Go .. by .roll· ocll J:lrD.ft He,soll,ltion TD/1.~68 was adopted

52. This resolution cc~ls on th~ ___ c:.cv~JlOpe·d'~ coU ·tries t~::(~{{;i'nc.ta -:tll

pr~~G-ioos in "the se~VicCs s-ector; ~d 'i~ ;P'articular discriminatory and unfair

. ,,

· in ·tr.ansj:icirt, banking ~.ncJ.. insurance 1 omp:j.()yGC.::a.gain t .th().:,developing countries •. . -·- . ~ -

53._--~ In the trans~~r~ scc~~r:,~-~ar·t;i~~l~r att~~>ib~-:shoU.lCl..:bg~kiven to - . ;"".. --.--~ ;· . .. '. . . . ; !(:. ::·

the disoi-irnina:tory p_ractioo of systems of dtiopaly i· · oi vil civia:tl'On 1· \'ll'hcrcby ~ ..... 1 '"········ .:·r:·" :.; , ,.,.,. ;····:

special :fares becOme ail sxolusi vo arrangomcat bot'ttU n t\-IO devoTOjJtrJ-=· oountries'o

5;4-· T!1G ~E.:solu~ion requests -tho Seorot2.ry Gcn ral of Ul:JC·.::'llD to initic:rGo 7

as a mat.tor: of u:r:-goncy_,_ as OX£ilnirln.tion -~~~ .~maiys'i.s of the effeCts· of tho

¢lisc:_:t:iminu.tor;y o.nd unfa~r civil avi2:Gion praotic~~!S, mploye:U by ~he developed ' : ~ '. ' ' - ..

countries on the grouth of air t1•ansport 1 including ai:i' oro-go and. tourism

in developing countries.

:" ,. '

' . 55· It Hould not bo an ex<l£eration to say tho }he conore.;e · anu sub-

stantial proposals made by developing countries to Co1~trol protectionisiJ! were

not accepted. The compromise which 1-::.s roached. ·On Resolution T.D/1.188, V"'<,91e

as it .we.s in its formulation <?..nd limiting i'ts.9lf t rocommcticlations, v-Ias r"'ar

from mooting the clynQJllic and greet demands made b tho developing countries

on the subject.

CN/984(XX.XIII)

Pnge 19

56. In fact 1 vlhile the developing countries insistud on the fact that

, · ·-thG ~lti. table cure for pro~eoti~:mist~l t·m.s 11w:orld industrial restructuring'1,

tlwy .)lGtpj· that their idea w-:cs diluted. o.nd replb,p;ld with" Structural

adjustment :r ~ ;_rhe iadaa Nhich was cru:est"ioned \10.~. the res·Gructuring of the

world econorey1 a sine quo non condition for tho establishment of the Heor _._ ·' 'r ._ . . \,:; · .. International EConomic Order.

:-- ... ·:::

57: It must be· notod thaf tho proposed struct'ural'~·.,djustmcnts in the

· fic.lds· of

regar,dint; .. : . -·- :'

was rathar

l ·.•

production . _ ..... : .. "

pr.oduchonj exports and impc-rts do not imply c:ny

thei; imp~o~entat~on.by the developed countries. . " •.. . 1:··, :··. in the -form of wishes or desires.

commitment

This proposal

.On i;_)lo .other ha.rid 1 -~)lc targets of 25 per cent share in ,~<orld . ·.·; .,

of and .at least 30 per cent of v10rld trade •. , ' •.. ' ·' • • • 'J \ • • .r;-; '. ' ...

in manufactures for

, : ;d.!3:Villoping cou11.tries b,Y the ye<JX 2009 did .. not receive. a ganeral consensus.

. : . .. :·;_ .::-_ .

. -~ ..... : . ;:. '

5£t.-: w. ,__ The_ . .<?o-qrdina;~ed i.n~J3rna;~iona+ pr().b.r~mmc of nc·Gion for dealing

1vi,®,pi'ctecti'!nis_m was :r>oj.ictcd~out~i,;ht si~~8 Resolution 'rD/L_.l}l8 contained

o~ <l. ip:r-oposed. ~ro~a,_l)l'il~ of action ~o~- ~tructural adju~tmcmt.

''-•

·pO •. Tho developing countries propgsed tho setting up of a mechanism '

wi, thin ill>iCI'.<ill which 1·10uld allo~1 fer periodic rovie~< of t!1e patterns of ·'.

production and trade in the world econcrey; but this vms rejected.

61. O'a short term -rweotiatimi m<~asuros such as rGpea.l of exis·ting

sectoral [t[;roemonts, 3afegue.rd i~lOasurcs, the elimina;~ion of tc..riff

es.calaticn 1 all· forms of rastrictions 1 non"'-tariff barriers etc •••

UNCTAD 1 rill' insti tu'Gion which could. very efficiently handle ·those issues

' was refilseij. this assignment in favour of GA'I"'', '.Vhe fad 1 howovcr 1 is tha.t

GATT ra.roly takes into -?.Ccount tho in·terests of devolo11in~ countries

when making its de.oisions •

.•

'

'Crvi/984 (XXXIII)

Page 20

··62. ·- Rcsol-u~ion Ji.D/L~168 which 1ms: vot~d by···ro l · call has a ·unique

·~;ian't"2.G'e·~roid.-a cnax1c'e to bv im~l~men:tod 'tru;;~~ th· p~n.graph'_~~equest~ng ~ho._' seqrqtu.fy Gon~ral .:·of UNCl'_i!.:p'to· i~itiatc1 ~s am tt-.1: of'· urgency~ 1:.n

C:J!:~na:t:j._ori and analysis ~f ·the· eff<?P~,s of the ui.sc· iJ?in~tory o:!."'ld unfair

ciy,ii: n.vic.tion pra.cticE!s employed. by . t-~c ~eye~9pcd=· oun·J;ries. on:'thc groh'ih . . . . . of ::l.ir transport, including air ~ co.reo and tourism if dev.ploping.· courit:ries·.

It must .· t;n~ly_ .be noted tha:t · i~ _i"i;s :;-es ,luti_on 33/195, the • • 0

Genera.! .A.sscliibi.y e_spcc.iqlly, ··the inorcasi_ng .o.i.'lSl. \·l'i4 '-sprcO.dy oonoe.rn -. -~ w ~ • • t . ' .: ..... . •

brougP,t c:.bou-t .by the growing protectiomsm of. dovoi 'pod countries town.rds • · -..:. : •• • .... f; .. • - •. :--· . , .;; • • • .. .. : ~ • • • •• • ;, • - · ~1 • •

'experts :rr:om developing countri_os .. to adh9rc strict t 'o -the standstill • :. .. . . . - .. _._ .r.._ ..... ..... ·:;.. .

.. p~ovisions the;r had acceptc.l concerning new tariff nd. n~m-tar:;_ff. barriers

: 't.o .- e_xpor.t f? .. :of' clc;ve.~s>Pi_ng 09urrt;r ics or th'e s;t_rengthc ing . of cxi_stin{;-. . ' . .. . 'b~r;i,c:t!~:: ~'lq_j;o ef~pct structural changes in tho lc s competitive sectors

--- .. :., . . Q.f<,j;heir econoli\Yl• ... -:rh~. '.General -!lsscmbly further urgyd _them to e;t.if!!ine.te

all forms· of_ protc~ti~i~t ~~~:tices· ~d: meas~es ~ff?·c;~wg -e~~~0

tei~from develo:ping 9Quntries·~:

·con t ' d • • • • • •

- ','

·Item JD

INTEGRATE!) PI(0GHAM1<-T2 ··oF "b0I4HODI-TIES·,··

CN/ 9 84 ( X:J6~III)

Page 21

The ~--:!inis_t.eria~ Conference of' the Group of 77 in Arusha

decided that Ul·TC?-~:i,~D V in Man.ii8. should c·onSider a ;:ru.r;1b~3Y: o:t-.

issues under th~ 1Integrate·d Prograrmne of' Com~od:tties (~PG) such

'" ... · e.s the Common .Fun,d, Act~on on :·.I~.d-~:V·idual Commodit'ieS as contained

fn res olutio!l 93(tV), comp.J.em~:nt~·ciry ~ina:I6i.al facility -for com-.

modity short:f:"cil+~,_ marl<:ct and distribution and .!~esearch and

. dcve1opment, market .. ,promotion tlhd horizont.il diversi:ficftt.1.on.

··:At Nairobi, UNC'):'Jl,D IV ·ad{;pted. a resolut.ion •<hich only referred

to ma:i,n .. e:Lement.s· of the COmmon Fund and e.. Programma. of' Negotiat­

ing. ai'med ·-~t~ achi~ving an agre.ement over! the 1 G commodities

identified as essent{al ~or t!1.c acon~mies of' the developing

countries ... In 'r-1fu"'lila, i"legotiations extended to cover five ele-

ments excluding the Conu:1on Fundo ··:-

.. · .. , ~: r:·

T:H:E CO!'li<ION FUND

65. The l'1inist.grial l'!ce.i;ing oi' tho Grohp of 77 in PD1:lrua:r-y,

1979, in .. Arusha took 'place a month before the last meeting on

. the Common Fa."ld was convened in Geneva in !>(arch, l9'i9. The

result of that. last meeting 1.;as an agroe!nent to establish the

Common Fund, subj.c::ct to the details. being Worked =Out E:lt a

Conference. to be · conv0ned in· S0pte.mbe·r, 1979.

66. A;r' a result, it ><as un.>:1ecessary to nego.tiat.e I'urther

on the Common Fund .in Hanila in: ·~as~ .... ~t cr~at~d_.;_f·~~the~ mis­

und<.rstanclings. An oppo;,..tuni. ty ,.ras s0ized in Maniie'' to call

on members to ple~ge 't~e:Vr contr·i~.uti.;n~ t{) ·~l~~ s~·~'ond ':lindm•

whose funding was largely w1derstood to derive from voluntary

contribut·ions~ The J.is·t of' pled-ges made i1s .append-8d as . ' . ' . . .

Annex I to this repor't ·, .. ;··''• .·:.

. ' -~.·~ . : :: . . ,' .... \ .;i ... ·' .':

·ACT:ION ON INDIVIDUAL C0~1HODITIES AS CONTAINillD IN RESOLUTION 93(IV}

.67. According to ti1.e programme established at. UNCTAD IV in

Nairobi, 1976, the preparatory \w"ork :for the Int0grated Programme

Cl"i/9 34 (XXXIII)

Page 22

?f (?otnmodities. (IPC) ought to have been cenpn_eted at the end of'

i978. The pr'ogramme was designed to set u :? International Com-

rr:odity AgreGments (ICAs) .on soma 1 3 · comL!lodi.tj:Le.s'·· envi.saged under

Reso~u-tion

direction.

93 (IV) • Thera was very little pvogress made :Lr:. tha·t

On~y · f'i:..;~·:.G.s:;n'l,lt;\od±t:l:esa -cof'f:e;e ; oQc.9a, :!Sugar, tin, . .,. ... -. ·- . o~ive and olive ei~ ~eached ICAs. UNCTiu':Y V fou.."'ld. it I?-ecessary

to· extend the ~~g.6tiating period' tc the . . ~m.d o:f 197~. I!l ·the·

period bGtvmen 'i~Yi6 . and l97B, some of' the c !f>mmodi ties lv-ere not

even di.scusse d ;sUcl~ as bauxite and bari.anas:. In the case of' .

. p:C.osphates, the ·~?.j :or producer.s did ~ot· . ;o;ven turn up. ?.·t the . .

· m·8etings su.mnone&·by UNCTAD. Con~eciuently, n0 preparatory meeting : .. · ..

was. ev'?r he,ld. · ... · .. ~iu~ situa ti.on f'or othe r corr.tnodi·tie s 1 al thoug}f.

prE? para tory meetings ·. were hGld, still rema:ims bleak. Only natural

. r~bb~r . leek~ promising ·ru1.d i .s like ly ito :re.ach an ICA by_ the end

Qf. _.1979.

p9sition

This is due to its strong market pos:i tioi). and the 'l'ni teG.

and · s --tand ., . of the produ~ers. These tw·o con-

ditions do not exist t:or the other commod.ities.

68. Prices of' cocoa, cof:f'ee a..TJ.ci tea fell. :frorrr th:cir ···paak leve1o - -

of 1976/7. Despite the setting up of a sugar ICA in September,

1977, prices for this commodity have remaiped. yery low·. The Cuban

delegation introduced a docurM~n.t on sugar at UNCTAD V ~vhich w·as

~inally adopted . by the Con£erence witp - ~he observation that the

prevailing i1orld ''"market . prices we:re f'ar :fr.om the rr.li.n:in~ price

:bvels stipulat0 d in· ;the sugar .;~.gr·e~men.t of 1977' t o •the C.etr:i.ment

of' the developfnK '··countries vihich depended: on sugar~ ·· ·-'Fhe mc.st -.. • -I ;

serious probl-em which· facc,d . the Agreeme nt' ~va s· t~:le lack. of parti­

cipation by the EEC.: The ··EEC ha'.:l increas<lld exports through sub­

sidized sales bringing prices _, do~vn at a t:Lmr; when exporting

deve loping countries w·ere f!Ubj.ecting· themselv0s to ;narkot dis-

cipli~e. . . . ·... -: ~

The ·EEc' GXports- of .sugar rose · f't'om a...:{ ·aver·a ge of'

29.5,000 tonnes in '1971-75 ' to pwre tl}an .3 tnillion··tonnes in 1973.

ThG Cuban oocu;nent claimed that tbat was a· vi·olatj.'on nf: ·th-:;: S'.lg ar

agreem<;nt which ,..,as a result of· l.ielicate negot:i:~tio_n5 , u:n.d <::~:r the

IPC. The Fre nch delegate on behalf' of the ,:SEC,. <1\:l;o;put.ec.::. ·:;h-:::

claim by Cuba while the. Austrian · deldgatle c onfi::p ncc: . it.

CH/984(X:XXEI)

Page 23

69.·· Polit·icul pressures in sorae. developed countr±.-es ~ade it \

di:f:ficul.t fo1.~ the Uni te.d .. E:t,a-Ge;;; .to ratify the Sugar Agreement

·l'lhi-le .Canada continued to obtai!:!- sugar from SOutll: Af'::cica 1vhich

is not a member of the 1977 Sugar Agreemsnto Th& tin·and copper

prices·~~4 s~arply risen following three vearS of.recession which .. . ~ ' .

had brought prices-pelow.production levels •

... from developing countries fell by .5% in :1:979 Hhili>. pr:i,-CG'? of . . . ma.nuf'ac_:t_ur~-S:. ~rom developed countries rose oy· 1.:4%·.-_. P.?_.Spite the

Dakar Resoluti.on of' FebruarY, 1975~ 1.vhicl'l Ce.lied· ·:tor -·c·c~:l-ective

··act:ion .1Jy produc.-~rs to _boost ... comnodity prfces, ·3Con.omic ?:ce..lity

-~d- pqliti:cal_ Q.i~:fGre.nces had imPelled th~e :pro-duCers t-o adopt

·varying appr_oaches. For. example,· in ·1978, :Australia ·su·:::,otageC!.

··attempts by qther r.1eq1b.'?.rs of Bauxite ASsO·Ciz.tion froi11 f!ixing

hi:gher prices.

70.- .. The·· dey_el9ping coq.ntries have since discovered that price

stabil:ity ,does,-not_,' :dth :falling demand, l:.ad.to stab.il.ity in

ec..rning.s_. There "'t<Tas a great deal of h.Qpc when the~ ··r.o.:;?resentaL.i"""1 . . .

'of if.;.st Germany ·suggested that the_ro be a globilis:.,,a.-:f'orm o:f

St.~bex cov.erine; 25 comr.J.OGi ties. This would· rGC)Uire. f~5 billion

which_·wou+d be provided on discriminaiiv0 basis bett-roqn the poor

and the rich. ·';r'he iVes:t Germ~D. idea ··,vas .riot followed at the

Conference, It was,_,in the context o:f 'these di:ff'iculties and

d;iffercnces that :m:TCTAD V. discus serl the IPC. problems.

RESOLUTIONS ADOPTED ON COMMODITIES

71. The Conference adopted several resolU:tions' on commodities.

One of .then~ dealt w.ith· International Food Trado (Resolution TD/L.

167). It urge~ that i_nvestrrle~t and -t,3Chllical ·assistance should . .

substantially be increased with th-a support of the developed

... Countries and th~ internati.onal community c;Jncernecl, especially

in the LDCs. The ~~esolution suggested ·Ghat e.s a lvay of' securing

stable and equitable prices, it 1-1as necessarY ·to acJ.1.ieve early

-~ oo:nclus.i·o:q., .. where appropriate,· :of~···inte~ne.iiOna1 a·greernents on :food

com:nodities including the establishment of adequa-te reserves:

The Resolution requested the Secretary General of UNCTAD to maintain,

............ ,.,. .... regular rcvie·h', all matters regarding international food .• ,_ .• ~-~ ,...

Crli/ 9 84 ( XYCaii)

Page 2L~

The Secrqt,ary,. General should exami.nG the impact· o:f· food. .trade:

on food production, consumption c>..nct · s'ecuritjY in developing

count r.i.:e·s .• .

72. : ·· Anot.her .Resolu:t;ion 1,1nder the :!PC -wa~ on TUngsten

( Re scl,ut:i.on TP/L. i 66) which is out s:i.d.~ the 1 8 :commod,i ti0 s iC.en­

~if'ieci .im-der Resolution 93(IV). -i-he· R(;>soltition· ~·Tas ac1.cpted

after the . ·spon.sors pointed ~~t that' the v-~L~.tili'ty of. the

t'i.ln:gsteri: marke-~.- had_ been ;n f~r · 1·!~ y~ar·s 'i.J th most proc!.ucer and

co'nsu,mar ·c ·ountries ~avouring ~he convcn:i:ng of': a negot-iating

coni'erEl'nc~ .. f:or concluding an international COJ>tl:rto'di'ty · aX'}:"a-"rLg-ement.

73·. Tho Reso.J,.~tion called ~or the S~c~eltary General · o:f UN'CT.A.D

to convene :further preparatory ~o~tings. :fnr·I the·. C.~nfer0;n.ce as

soon as po.ssib.le:· Th_e res'..:;lt s .?:f the proPlar·atory ~e6t"~ng should . - .

gui.de h~o on the timing 'o? convening · a negtoti'ating· ·conference on

~,gsten possibly before the end o~ 1980. . .

.. 74". Th<? ma,:i,.n Ros.olution adopted on. comnjoditi.es was· the text

covering several aspects of th~ implement~tion Of;tho ·IPC

est~blis~ed by UNCTAD ~V. Section A urge¢ the · gcvei:'nmen"ts to

: .. intensi:f'-y- ei':;:'.or~s on the C~i.!lmon Fu.."l.d in o~dcr t:> hasten the

drafting o? the a1:ti.c1e.s . ?:f' agre..:;r,Je.nt by $eptember; ·1.979.

governments were further ur~ed to ~rynounce thei~ intentions to

c.ontribu,t·e to the Second Window voluntarijl:y : · Section . B of the

Resoltition d.e:al t 1.,..i th the intensi:ficatio:rl o:i: ·. ef:fort s that vTere

required to promote international arrangcpcnt~ on individu~l

commod:itie s. . :It invited r::1em~ers of the etx:isti.ng ICAs ·to consi.der

associating themselv·~s· .. ...;.1.-t.h 'the C.omn1btl : l.t'1+~'d-.'·w:Lth a viev; to using

the· financial :facilities availabl e in itfj :firs·t and second windows.

75. The ·s·econd hal±, of' tl".e Re solution vas devoted to the wish

of the devel?ping countries to have a lall'ge'r role in the processing

o:f primary con>...~:'!!Odi ties a."1.d in the export· o:f ·processed· good.s . It .. .. .. . provide~ :for the i~c.fe_ase.d participation by_ the cleve-}oping colL,·t-

rie~ in the marketing and distribution ·of co~mod1ty exports . It . . . . . ·~

·reque_ste~ UNSTA;D Secretaria.·t, to ·prepare $tudies ~n all these sub­

jectS as well .as on neGdS and co'st S in t~1.0 medium. t 'er!n in the

1 ••

1! · r,,

'

OM/ 9 84 ( JG'CXIII) Page 25

fields of research and development,. mal~ket pr01':'ot~on and

horizon, tal diversification. The Resolution :?.],so .. stated that

after the IPC as ·such had been· concluded at t:t;te -''md .of, 1979,

the, w.ork begun under the IPC ~rould be· taken ovo.r as .p;;trt. of

UNCTAD' s regular progra;;,r.,e··· o·f· work in. commodities.

76o Belgium·; on· ·behalf o/ Group ·B D:J?J,de a statement in support .· .. , Other

1 ,, •

members of Group B such as Host Germany, Canada and the United

States spoke emphasizing· their ag,e-old conce].Jt of free markets

factor in the price of com-.. ' :;ayi~g that the oriiy· determining

~odlt~;,;~ · ->.i~rc(·':narket' forces· (the -' · .. ~ . law of sup~lr and demand)

rather than ;.rha t they'· called artificial measures. Tho represen­

tative of' Hest ·Germany thought it "tvas-··· .. a' .ser,io;qs error- to make any . .' ,. , ... .,;, , ... ' ·:.

s~~gestions of indexation of cOmmodity pricos from fu, economic

poOLnt of view; Austria expressed satisfaction with the·: concensus . .

on the 'resolution but :hoted 't:;ha·t' SOi:!le parts of the resolution

required c~reful study.

77. .o;n behalf of G:r-oup lJ .'c.oti,ntries, Bulgaria OJ<Opressed

.apprehension at :the·· cci'sts '"hio)1 ·.,night ba involved .in,. convening • preparatory meetings on the 'various individual !>Otnmodi;ties.

CALENDAR OF IVJEETINGS ···

78. After' inf'.orma1 conslil·t~tions, · the ti"nta;tive calendar of

me!"tings contah1.ed ,ln: 'the anriext. tp document TD/L.169 "''!-S re;-

vised. The revised calend'ar. is appe.nded.as Annex II to this

report~ .. ...

COHPENSATORY .FINANCING· :FACILITY

79. The ori&inal Resolution on IPC included a section on

comp,?nsatory f~nancing facilitY (CFF)... This section occupied . . . . . .

a great deal of attention during. the ·de)Jate· on I;E'C and provoked

a lqt of controversy.. The J;"Oasons ;.rere that Group B and D ;.rere

in no raood to consider matte.rs that· involVed spending of money.

'\

.age 26

'.:

Thci.: maj-or .~eason 'l'{?-S ,that the ;_GW ~ f'inanc:ia1 facil:l.ty was intcndod

t·6~··break ·YJ'ith the.:.tr.aci.it.ion af: ... Using ·tho· if cilities offered by

the I~iF. to ,,.hich; G=-o).lp B CO).lntriC>s. have a c ntrol and arc :familiar

with.

·. '" 80. , The 6qntrove,rs.Y. was provoked }'Y :ch UNCTAD Secretariat

:paper whiCh prop9~od·, tha.t another land:Lng ·acility should be

crGated to bridge tl;le gap between s~J.ort-to m ~oncessiOna+ loa:1s

granted by U1F and· ,):;.he lon~-terrr: concessio al· loans provided by

:the vlorld Bank.

81 ;•.:

th:Gre wore pr "sontl}r tWo· compe11:.sa--The paper stated that . ~ : .' '

tion · schcme_S in O!_:)era:tion - thG com;>e:riSato Y fin8.nci.Ug ··i:'acili ty

(CFF) of' the- IHF ~"l.d. the .EEC/AC~ s~9h~~~~ ~~ the' stabilisation of

export. earn:U'l.gs (STABEX). The f'orm.er. ~che·.16'"i-elates drawings

to short-falls on overall !.lerchadiso tradG. subject to ·there being

a balance-of-payment deficit, 1vhile t"l1o 'la ar rola-i;cs drawings to

short-falls on individual commocli.tias inC uded in the schemG

regardless of' the state of' ·the balance-of'- aymcntso

• 82., The generr!.l principles needed "!:Oi'"" such CF~iJ' .?.ii;!ed at

compensation :for coi:::.::1odity spec:i.I-.ic s:~ort.ralls in oxp~rt earnings,

could include the follc"'.·ting"~ ........ \.,. ;;.

a) ac~cess t6 the facility woUld bE opei"l only to the

dovGlopi~g countriesy ,-

b) it would cover all conmod.iti·Js (foods,:. agricultural, ""~-----

ravr r.1atorialS·~----iiiiil·Si:'a"l:S and me als) sub.je:ct to an

:J!.groed ge:fini~ior~;

c) coQpens-a·tion woP,lC:l 60'·-~ ·ava·rr£b:t- =·~t:o .. ·cot.Lntries on the

basis o£; .the:ir .~ommoC.ity speci-·ic' shortf'a:llsr after ' -·· '

. taking_ .intO accou~:t tP,0:;Lr -draw :1gs u.t"'""l.der '"ths CFF a.+J.c:.

STABEX. d) tha short:fa11 formula 1YoUld be b8.sed an. ?~ suf'f'icientl.y

lon~-tert:l .trcn::' Fl!ld 1..;roU.id mal-ce ·al"!Owancos for changes

in the i~nport .Purchasing' po,-.rCr of' export e'arni.ngs ~

e) repurchases of C-:)m_pensation ulcl rc:pay, using such

criteria as the position of its balance-of-payments

and its resources.

•

C>r/ 0 f.''~'~ ( ":-..r:T~..LT) 1:! ..... ._, • .1~--'- -

Page 27

. ~83. Several_courses_ qf acticn were O?On to thG gov~rnments

e.:n. ·.aX t'ons :Lon of' the ~--·.·· . in ·establishi_ng _.the CFF:.

. . ' .. .

It could. be

exis.t':i.~g STABEX.' scheme, .·sUi t;3-r-~iJ;. rc.;i sed r ·e.l ter·nati veiy, it. ~. . ..

might be establ:Vshed .as ·a ·ti~ird ,.,illdo\~ of thO Cc~D'imon Fund, as . r ~ . -.a sCparate facility ,._.,.ithin ari existing international f:i:aancial

; .. , t.~; 1

institut-ion.· Th~s sp~rke~ a debate about lVho shou~d. handle the

new fund. The H1F: is supposed to handle the short~term 'while

the ?To:rld Ba:nl-c handles the long-term. G:rou:;;> B count-ries favoured

th0 IMF wliilci .. the developing countri'·3s prex .... errecl th.G Horld Bank.

Group B countriGs 1:favoureC. tha I1-rn' Occause it is better equipped

'to trick dot·ffi:- debtors. than the Wor"ld Be.nk is. . ·.· Th0 :p~ has also

got tlle rc~ources .even its o"tvn money SDRS t.,rhi.ch Can. generate ne'tr/

f'und.s 3-TJ.d gold stock a:rir:. has flexibility t.Q restructure its le:n.c1-

ing --.;.;indo-sJs to m21-{e roo!]l f':::>r the new i'U:rid ~

.. 8l~" Arguing 'against thG II\fF·; t'h.G dGVe·ioping coup.tries stated

that th9,' IIY1F ~aci;tity t·las i~adequate bGcause it is non-discrimina:­

tory, regressive, li&ite(\_ to ~oU:ntriGn Wi:th. a ba.la..,7J.ce of payr:tent

proble:ns and o:f:f_0rs· no eas~~~ ~i.:co~v~i;t·i_one~iity reqUiroments f·)?:'

the pqo:t'est countr:ics. '';['he lii?:i.t.i~t"i.~n· lGads to large: imbalances

bei;:l8Gn·· the i...,i·c:J.·. and poor .counti-ie~· iii.· .. th~ re:nume:ration thoy rG-. .. . . ' ;' . ' ,

_30:-Gtveon Ju.."'lo, · 19?o aad Ayril, 1977, . ; ' . ('· ·.

CF}~ _bene:fi te&.~:.A..us:tralia, .. _.Is1"ael, Ne·...: Z"eal8.nd and South A.frica

wi tl-i a t ota1 -amount. ·l"f:q.te:h was .:no.re t'ii~n :~\;he. t· .16 ~\.frica!l countries

ail iogethet; l .. ecoiv·.::d f'rom the dFF.. A:uitr2.lia, Israel alld South

Af'r~ca. :recciVOcf· .an a-.rG~.agc __ .. ~f_-.4j~·-·mo~e 'than ,~·.rhat l<.ras received Oy

ju~t:i..fi.bd ·t:b.e n0cC. for a :rHH·/ CFF ·to ; ·-:

meet tho pressure \·lhich the developing c6U."'1.trie.s uncou:J.terGd in

the vhrlcc trade. ··<· .-. ,· ..• .:: .•• ':..:..

TriE DECISION ON CFF ·.'

.. Af'ter continuous debate caused by t"he· f'o:ct that Group B . .:.·: .. , . ' .

had; ~.abled a COlL"l.ter-resoluti.oil c"allini vn th0 ,.Conference to __ , ;

. del ~y mal<:ing .a -d.ec~_sio!l on the pr0blom a·.f t~re CFF until a. sioi1ar

u~1der preparation

by the HW e.;:J.cl l'lo:rld ~Bu::;ili::, was cbr.r!)letecl i·n Septenber, 1979.

•

CN/9G4(XXXIII) Page 28

The ·Group of 77 :;-Tas UJ?Set ·.by this attit· ·:ie Gf Group B

... ; :·· · countries anG. C.ecid~d to singl~ Ci} .. t tho . ·. .

aspect of the IPC

Resolution 1.vhich Qovered the CFF t __ q .a.~ te in the plenary. ' .

The result of' -the. vote was 73 - .. 12 - 14

86. Speaking on b?half of Group B; to.e representative

of the FedeTal Republic; o"!· Germany~ ."r grettcd. de"e:PlY." the

attitude· of the Group of 77 :whic~1. decided, to separate arti-

.. _., ·cifi·Cally th~ ,issue of CFF. from .the ove ·all'resolut··~on of'

IP.C. Group _:9 countries, \>lest German-y:, the. United St'ates, .

Canada, Sweden, Finland, ~orway and Sp i~ explained why they

r

'

voted against the resolution. Denmark, Japan and t;<e Nether-'

lands, ~xp~ained 1vhy they abstained. lhG~UniteC~ States and

Canada insisted that they favoured try'ng to imprqve the

.existing INF compense¥tory f'inancing .. f'a ility.

=Apart ··:from. the suga1.:) anC. tu.ngst n res·olutions ado:;_:>ted

j)y tho Conference, a resolution on whe t which ;.ras syonsorcd

by .t~"1e ;~sian countries was adopted by. ~e Conference. The

Eesolusion -expressed the conc.arn felt ·n t:"le Wheat proc1:ucing

c9untries that there had been c~elays r'9~chi~g .:::L-, agro·:o:me:nt

at the vfheat Negotiating Conference. t callGcl en all yarti-

cipating countries to axert the requir d political 1-1ill at the

next session of the International 1·Jhcau C~u..'1.cil :i.:1. June to re-

examine- the main unsolved issues toget er w.?:-th ne"t•T possible

eler.1ents &J.d conditions that l·Toul.d al ovr :for a successi't:.l' con-

elusions of the negotiations.

TR.I\.NSNATIONAL COEPOHATIONS.

88. A dra:ft resolution submi tt.ed t the Negotiating Group

III by· Group D countries calling for easures to be taken to . ' . -·. . ·curtail the activities o:f the Tran?na'ion.al Corporations and

to i!l.troc1.uce me.asures at the national and international levels

.:·to increas~· .~h,G. ~nclepenc.lent pf:?.rticipa ion ,o:f national 0nterprise

in. expar~cling th~ :n:"'oC'~uctiqn o:f comracd tios -;:vas referred' to the

permanent nachi.nery o 1-.. UNCTAD.

,-·,.

Cll/984(XXXIII)

Pace 29

90. Four· items .were include-d. on the: A:;;onda. rcc.:1rding m:t.nufa.ctures and . ~ . sem~-manufactur.o.s 1 . nanioly:

·;,.

a) Compr.ehonsi vc m&c.sur.es ~equil·ed to cXiXInd, aacl diversify

tlie export of developiw...; countries in manufc;cturcs and. somi­

rnc.nufn.ctures.

b) RGstrictive Business Pra-ctices, --~

., c) R,cview and .evaluation of GOnornRscd system of prufor.enoos,

. -.: .... .:. d) Review of tho Impiemcnt6.-hm1 Conference Resolutions 96(IV) and

97(IV)

A. ?omJ2.i-~hcnsive meo.surcs rcauirc~Ji .. <a.. Gxpn.nd ~.nd divcr~ify thG expor·G

pf .£!.9~~19_iin;.·: countries in fi}p:.d~~k-6;tur~~ :o.nd semi-:~~nufa.c_~~

THE ARUSHA SPIRIT .... \'.

'· ;_>-.·

91~ Tho restructurinG of ·111o'rld tra,le i.n m.•nufc>cturos and semi-manufc.cturGs

calls for chanG;os in the in<.!.ustr.ial policies of the developed countrios

(devclopGd .countries t-;ith li'.arkot economy u.nd developed co1.:mtries \·rith planned

cconom;y:). supported b;y; acti~n .:1_ith ,rG$."'rd to~ t!':o.nsn:ctional corpor"tions 1>1hich · ·• -· --- 1' . - ·; ~.a~'l.U'tr: .... · .. ri:J(,·r.• ·." · ·.,..~r 0., ·: ·

coristituteadomincnt factor in ;·10rld ·pr;d:u~cticni';· nnrketin;:; and dis-tribution of

~D:~.?CJGures 2.nd scmi-marr~lfq.c~ur<.:s, implefiKilteJ. by mG-::.surcs to increase in·Gra-. _ .. ·.

industry tre..de, to rOmove t.hc supply constraints' on developinG countries,

to control the oporcctors of TNGs a.nd. 'to improve accc;:os for 'tho uJanufc:cturod

exports of developing countries.

- •• !

a) RcGtru.ct~in:;· industrJ..§l.l -oroduction n.ncl ~·forld Ti-ado

'I'o . 'i;his c;nd:1 iR· order to ccchicvo t.ho. · 25% t'arget for the. .develoing

· countri0s i.n-··~~.i.~.;i;E-l .. ·{;~c!d.uctioii a~ 30 per cent in tho \lorld . .. .. ..

tr.:!.dc for manuf;,~~tur~.~ ~fit+ .. Gomi-rna.nufac-:t;ures,_.~thc follo\'rin~· ' ' . . . ' .. measures an~ rocoriHaend.ations were proposocl in a dru.ft resolution:

92.

b)

(ii)

(iii)

C:M:/984(XXXIII)

Pa.t;e 30

D~Y~~~e~ _co;u?~.r.ies t!J tak~_ hrGGnt .?-.~ti~it~:. r.n.-~ordC.f- ·=to""il11])l·omq'n~.;. indu~,b-'Ijial po:l!-:i;~iQs t-.rhich promote

a. rcstruc·t~i-nr.·: ·of ;.w~ld i~dustri~l- Tiroduction and. trade . ~ r ,

~a~:i.c · ?ortipet-i ti ve e'•d~c.n-Ga{;e i -s shi:fti4&. in favou:r of

the developing c~:tlir'.;ric·s'-1~a~d to~ crl.ibl'G -~hb devclopine

countries to procc~s ·their co5moj_i-~ios and· r~l·i mu.terials .. thi.s giving irnpetu.s tp an orQ.erly dovclop mt;nt and tra nsfe r . - ' '\ . ~ . o±' indusi;rit::s in tho devolopiJlti countries'•

Rc-ind.ustriu.r ·policies of ·th(; deve:!.oped. countries should

?-lsb promo·te greL:'..ter iil.trn.-ip.dustr-.r spcci.c..lisation and

the ostablislli1cnt of o.pproprti.~tc joint ventures within

a sec·t;or to de·.rclo::_>in(;:. c(n.1...1'lt~~ics ..

The UNCT.AD Sccrei;.~.;;;-.ia-t:<..·iil co~pera.tion l·li th

UllTIDO . '-- : -· .·,.~ ,. "'".. . . ~ to· ~~entJ.f';y: the· ·grm·:th:~~cctors and the input

requireme~'ts for the: achivE..ii]Cnt of ·the tart:;ets set.

·Actions to be sufficiently evol~od and dovelopcd(in the

draft resolu-tion) so ·as .to:

improve the ·ropu.bility of the·dcvE!.loping countries to f:lupply '·

e~port_ manufaot.~ea cmd scmi-m.:."l.hufGJ,.cturc f:l.

increase the pa.rticip.::ttion 'of dev.tlop:i,.nc countries in markctins

and distribution.

i.::prove the access to me..rkets of t he developed countries for

exports o:f manufactur· .. s and semi-manufactures of the developing

countries •

...;· ·call····upon developed cou...."ltri{;;S ·to -elimine;~e restrictions in

the service s e ctor• ..

,REACTION'S OF' 'l~'ili DE1F.!SLOPED ColJ~lTRIES

The_devQ~oped countries reacted negativelY to these proposalso • ,..-. • • I

C!1/984(XXXIII)

Pace 31

•. In-stead 6f tackHri;~~- the''· su1:rstafi:~'"e·-:0-f the p:ro1.>1t;!m

1 ·hhey me rely made

: .. gen~ral observations:

(i) Th~y emphasised first th..:.t the i·lorld industriAl~ restructurint;

·was' the ' responsibi-lity· of t he n~c;otir.~ti!l[:; -Group on Hpro-Ge'ctio~ism''. On the· other h.L',_nd.,·. tl1ey -decla:red ~hat 2-ny indust::ial re;::tructurillG

was \11i thin the· compet~:Jnce of· e:J.ch country ::'~nci dict<ltinc policies .. . of· ;restTucturinc "to eo.ch T:iember State ;1ould" mean interferinG in

the internal o.ffairs.·.o:f -:the. t Stc.d:; e.

(ii) Group ·B rejected the 25 per cept tar(;e·t; for th'~·· production of

mamif.ictu.res and 30 per cent for ·~heir ln&rketint:~•

(iii) Furthermm.~e; re{:."arding .mea:s;uros for improvin,_; t4e.·,' capability of \ . '• . ': '· .

devEilopint; COUl!.t;'~CS to supply I' export·, '·trade i.Jj·;--b:nd dist-ribute

manufactures _C1.ild. ~emi-ma~ufc.cturcs, d~vei~pe"d· co.untries felt that

these were the responsibilit~,r of the illJ Centre I'or Transre.tional

.; C9r.:Po.ra'!;ions and not of UNCT1~D.

- (iv) '!'hey fur-ther felt that ·l;hey hc.d made proGress in -satisfying the

claims o:f- developinD countries no-t.::.bly durin€ the :nul tin<:~-tional Trade.-Net:;otintions a~d the i~lJ?leme.nt::ttion of the cencralised

system o:f· p1~efer<:1n'?es.

CONGUJSION.

93, . Posi tioils ~~cr~ ... ~.rreco~).~.i;tiu.1Jle o.nd any 2.(;'I'G011!Cnt on this i·tem ~..-<.ls

practioolly _impos::;ible.

94• .. . Hence the Group of 77 simpl.,)r dr~fted 3.1'ld .•.doJ.Ytud .?. declar~tion on

,:··eorl~p.rchc::·nsl.ve' m.~as'ure~ ·rel.:"t?-4-ed ~i.o .exp~nd and tliver::.i.fy the e::{port t:r<.;.de of . •. ··- , . .•. : · . . -:.~ .. •. ~ . J . . •..• · . . . -~evolo~inr· cou.;1.trics ~n: man~actures. a.ac:r.si"llli-rn.:J.m'.f.?l.ctures11

• Q'!se .d on the tu.rcet

and mc<"-S-'lrcs contcincd· in the Arusbo. docu.-ncnt ~-

.... :, i '" ' ' \ •. ,-)

:\. ·· ..

B. '- ·,' ,'\. ·:.·:,:··

CliJ/984(XXXIII)

Pace 32

PRETGI?LF.S AND HULI:S OF l'.ESTRICriY::J BUSINESf}_J'RACTI~ -'

,. 515• Restrictive Business Prac·bices such i1s· licencos for p-:otent arro.::J.(;eoents 1

"'1~d underst2.ndinr_; 1 pricinc t1:riffinp of internatiotal trC!.l!sfers 1 exclusive trade

~r!-anr._;8meil·ts, st1.les Oil 'conSicnracn-t, volunt::.:cy fixi ·'3 of L.[Uota.s etc. h.:1.~ adverse

effects on th8 economic L>nd soci:1l clevelOl)niem of evclopinc countries by hamper­

i11(r their inclustriGS and trade'

961. r-i. was therefore necess"ry. to takb •. specific mcasuns to control restrictive

bu~iness prac·Gices including those of -'Gransna.tiona cor_pora:~ions ospecic:.ll~,.- by

adoptin~· approprio.te. and effectiva nu.tional'lG[?isl .. tions.

97 • Furthermore 1 thi; !}erie·ral Assembly lm<l ·:J.eci 1ed, in its resolution 33/1531 _, ..( . ': :--,:... • • • . :'.l, .• ·· : ·:.i;, ·''i' :~

to convene 1 unclcr t_ho auspices of the UECTAD 1 a UN Conference on restrictive

··busin~ss prcoctices which, "on the ba.sis of ·th~ · I'IOr of th0 ThL":l Special Group . '

!?~_.experts e.nd by_ tak,inb' all C:ecisions nocess<:n .. y ·.or its Q.doption, l'lould negotiate

thEl oyEl:,a.ll principles .~nd equi tablo rules etpprov+ ~t the J.iinisterial level for

the control of restrictive business practices whi}h he.rl a.d:v~rse effect on int.:er­

nc.tional tr::.\Ue, :pa.rticulc.rly·, trade n.monc: dcvelop~nc:; coun't!'lGS and on thC; clevcl..op-

ment of the eco11onw of these' countries includ.in~:

of the principle aml the rules",

decision on thG lec:-.?.1 character

98• In the meantJme.t it is :1ecess2-ry to strenc;thcn the role of illiCTAD in

the fi0lcl of restrictive business pretctic:s. :J,Ud t~l set. up an a~~fl'opri~te machanism ,;i·ohin UNCTAD to notify and chss·em~nate ffLcLontly Lnformat~on on

restrictive business practices which h/1VG adverse effect on tr:1de a.monr; developing

:::;:~::~ t::n:v:::::r:~:c a::~~:~;~~~:o:~f::: ,:::±:c~=~e:,..,::~v:::: ::d f ::m:::e

techniCi}.l assistu.r!~~ to ,clevclopin[s~ ~?~t.ries i11 t c control of 'bhese practl.ces

and the implemo!l.';ntion of the appropr~ate proced es of consult:J.tion.

99. RESOLU'l'ION ':VD,LL.l57 ON RES'l'HIC'HvB BU:mrLs l:'iiliCTICES

~t is- D<>cessi'-:cy to mention 'cc12.t 1 at le:.1t in this area, the nc'-~otiation produced n: ~.si tive result C!.nd the Con:;:ercnce ~dqpte~, vTi ~hou1i any opposition,

~g~~ution TD/L.~57 on restrictive business praciices.

C~!/984(XXXIII)

Pace 33

100. Tho provisions of this resolution, summarised below 1take care of the

mjor part of tho developing count·ries 1· pre-occupations.

a) It wae decided ~bat the ill! ConferencE: on restrictive business

practices wi 11 be held durin.:; the last quarter of 1979 and the '

UNCTAD Secretariat is beinc called upon to unC.ertake tho necessary

preparations for this conferemce particularly to ;_'et the relevant

documents ready.

b) It was decided thc.t sustained action should pe taken within

the frameHork of UNC'rAD to cather information and to shc.ft one

spec,ific l3.W or laws on restrictive business practices so as to

assist developinG countries to promulgate a11 appropriate

lec;islation.

c) llemb,er States and the TJHCTAD Secrotcwo;:r-Genoral arc' bain(; called

upon to consider the possibilities of ensuring international

co-operation concernin;; the t;rantinc; of technical assistance to

developinr; countries in the control of restrictive business practices

and, especially, in the traininG of th&ir personnel. /

d) UliTCTAD V ur::;es the. TJ!il Conference on restrictive business p:ractices

to submit to the Trade ancl Devolopme11t Board, throuch the UN

General Assembly, recommend.:>tions o'n institutional aspects of the

,,ork devoted to restrictive business prz.ctices 1-Ii. thin the frame­

VIork of UNCTAD,

e) UNCTAD Secretary-General is beinc; to conduct

investigations into restric·tive business practices, especially

those of transnc.ticnal ccrpomtions, llhich llave adverse effect on

intcrn~tionnl trade, in particul~r, trade among developinG countries.

f) Finally 1 UNCTiiD V recoc;nises .the1t it is advisable that developing

countries encb'ura_f;e co-operation amont; themselves so as to ensure •

the control of restrictive business pr01.ctices which havo adverse

effect oil their tro<le and development,

c.

101.

Cl·l/984(XXXIII)

Page 34

GENERALISED SYSTEN OF PilEFEP.EnCES POSITION OF DEVELOPING COUNTRIES

Of late 1 the grant.ing of a generalised system of preferences has

•ontributed somehow to the improvement of the developing countries' access . " .

to developed countriesl markets. Unfo.:rtunately 1 at the moment the efforts .. of

preference~iving'c?untries are slackening in this area.

102. Hence, developinc countries proposed the ~()ll,qwipg __ m_easures ·in th~ir

draft resolution:. .:.·

...

·., ..

a) The extension of the duration of th& system beyond the initial · .....

. ~ ,ten-:-,ye?::.-... l?~:ri.o<J::,until the ~bjectives _of_ t~e _system are fully

attained. .,,

.. b).. That the g.eiiera],ised syst~l!l .of prefer.eJ:~ce;s sho~d be given a

·.• 1'1fal . cho-\r?,ct"Ei"r which woul,l increase the certainty and permanence

· of Jts a:ppliqation •. · . ! . :. ·'

-.o) .The c;eneralised1 universal, non-reciprocal- and .non-discrimina, ... ~--

• • ' I •

character of the system which should be. strictly. observed by .. ·

-preference-giving countries.

d) That wi thdra~zal of GSP concessionf> by preference-,iiving countries

shall not. be made except in the dontext of conditions ju~t{fying safeguard act'iono Such wi thckD.wal should not be unilateral but

e)

· ... -- .

subject to prior•:consultations with ·developing beneficiary

countries. . In case of a 11i thdrawal under these, conditions 1 off­

sett~ng·trade advan~ages should be granted.

CompenSfl.t:9.llY.· trade, advantages should be granted .certain developinc . 1.•.····

Cotu1tries enjoying.certain edvantages within the framework of

agreements or conventions sit~ed with certain developed coU11tries

before• the GSP io; extended to<al1 the-developing dountries without

an;y: discrimiik'1.tion. -. ·

\

103. . ;Besides, the guiding principles of gr!J:!lting the Generalised 'System of

Preferc~q~s, improvement, extention.n.nd increased utilisation of the generalised

'·t:t.q~84(XXXIII) .

Pade0::15

~;;·ys\~, .. .q:f .;I~;reference's' Were' ;f1tcluded iri the --dra'f.t>; 'resplutfori--' ado'pte-ci. by. the

Group . of' 77•

REll.CTIONS. OF · 'WHE, mj,'VELOPED J{J.Ji.illCfiP EC;ONbr.IY COUN'i'RJ:ES

104. - It should' be indicated that the re::J.ctions of the .deye-loped market . . · ·economy c~untries were ratlier negative. ·The draft r~~9lution th~r presented

at th-P-_- ~~.;~i~;;~G"~roe~-t1.ng was opti..omi.l in nature an\i gave its~~~~inbers -· every :I.a:J;i,t:\~de to grant., ·::;i-mplement, a.x.tend, =·improve and ·in!crease- the utilisation of - .. · ~ . . . . the general~;3ed ,sy~tem .of preferences. Besides; they reriia.i~cd :·silent over

UNC'l'AD'-s ' role in this area. _Finally, they did ·no·t; ~ccept to grant a legal

gen~ralised. l'>Yo~-tem bu;t: rathe:t' · pref'err-e'a a-· system in: the -form. of' ·6ptiona:i' . . .. . prov~ s ions.~ .: 'l'h_ey- the.ref o·re insl.s t ·ed o'ri' ·the pre serv~t ion: of th~: au,tonomous and

not contr~ctua.l: character of the gener~lised· eys.terrd~f...::pr•eferences. Developed

countries rejected the system of' compensation for ' tlie developing co~~tries

en~oy~ng_ -~pe?~al o;r preferential tre~tmen't·· wi thin t~e f'ramew~rk of an agreement

or cpz:t~e~~-:!-on duly-concluded with a g roup . of~ ddvclo}:led 'ci~untri es'i-' :in . case the

syst;~ --s~~-q.ld effectively· become' non-discr'imi.i:w. to:ry·fand uni ve;~al. --They

declared., t~~t they were--unable td· discuss· in an int~rnational body indust;rial ·. . ~· .. .

poliq:i,es 'ilh.ich were of nationa-l ·character and· conii>et ence. · The only positive ... ,; t · · I '

Ellemen-t) in. their stund was .. thc ·-.fact tMt they· .io'cep~ed the -:system of' prJ.or

consul ta.tions ·before the reduction;·· wi thdra.wal or tl~:e cancellation o±' the

g~~~~~J~~fl~- system of. preferences.

I

~TIONS .QF CEN"l'RALLY PLll~"NDD :GCONOMY COUNTRIES

195• ~!l. tl~eir , ~?t<?-n!l,. j;he sqcialist c~~tr~ef? _ qf ipastern Europe stated that

it was ess~ntial to improve the GeXJ~r~~i_sed .s;y!3.i;em of preferences by- ext·ending .

' .

cm/984(XXXIII)

Pace 36

. ... : .. · .. ~ . - .. ~ r ... nomenclc:ture ·of pl:'ddtr6ts 'enjoyinr;··tn~···prcferences by eliminating quantitative

restrictions on·good.s imported under .preferential conditions and by improving

the rules of oriciri. This should eii1.ble· the developing counthes to better

enjoy tariff preferences.for their trade exchances, . _._, ( ..

106. rhe socialist countries ~orked 'intensi,:ely' :from 1976 to 1978, to harmonise

these rules ancl entl.eavoured to take, l!l2,ximum accoUnt of the positive experience

t;ained dur:i.nro: the· Sessions of the <IOrking group oh rules of oricin to evolve

simpler and more suitable rules which would facilitate the identification of the

oricins of goocls;;

CONCLUSION

107 • As there vmre marked differences in· the stands adopted, the Group of 77 . merely pr'epared arid adopted a declaration on the generalised system of preferences

which included the relevant objectives based on the ArushD. document• .' ~ ()' .. ,

,J08, .. · :: R,,(}<lplution 96 (IV): "A set of interrelo.ted' E>nd mutilic•lly support inc

mcastires"'for exp'J.nsion· and diversification of'exports of manufaqtures and semi­

manufq.9tures of developing·conntriesu.

i:·-,__, __ : : "·~-~- ·~: ... -~ ......... • · ., • :;-~ .. -.

109• Resolution 97(IV): "Transnational Corporations· and 'increase in trade

of mo.n:1:1fo..ctures and ~ei1l.i-mahufaottiresr1 ,

STA'l'EloillNT OB' 'l'HE C.OU!OTRILS W: THE GHOUP OF i7 .

110. In their .statement, ·the developi·ng oomitries 'noted 'chat the implementation

of these two resolutions had been extreme;Ly.slow o.nd:_.discouraging and that in . :·. . '

c~r'tain cases·, their provisions had been violated. New restl!ictive limitations

.. and .obstacles were even introduced. .·,._:

~· ..

; ;

· .

·.,;

. ··.

I

CM/984(XXXIII)

Page 37 '

111~ The.developing countries were thereforE) cali~d upon to implement wholly

:and. quickly the pr,ovis~ons of ~esolutio~s 96(~V) and: 97(IV) and the Commission

on semi-mnufe.cturos:of't-he.."~rQ.de ancl Development Board we.s urced to follow . .. .., .... '•··.·. . I. . closely proc:;ress fl)acle,;in .tJ:\? i;nhi'~mentation 9f :h<;> ep.tire re~~lution 96(IV)•

• I

I . 112. A~~i tionnl~; Ae~elope\i countries :-rer~ ~ge4 ,~-~ Gi",e special attention

to reorientinG the act.ivities of tra.nsmtional .Corporations in developins . . . . ' .,. . . . . . l j • • '

countries towards more compl03te ma.nu:l'~cturillG opere.tions in these countries and • ' ••• • • I

an increased processinc of iocal. r~w· mat~riniSe .. ' . i '

... , .·· · ... ,··.I

113. Firu;c:J,ly t J!lember Sbtes of the' Commission o~.l transila\ional corporations . ..

;Jere called. upoii· ·.to take urc~nt action for the expeditious eompl·etion of the ' . . . ::·:·· . ~ .... :: .• : . . . :

draft'on'a code of con(j.uot on transrw.tionc .. l corporations. ··i·

·.-; ...

1],4. The developed countries purely 2.nd simply kept ·si~ent over thes<:

p~oposals •. They were of the opinion tlk1.t pro[;ress had bee~ in~ire" ip each country' I .,, •

. with regard to the implcment;c:tion of these two reso~utions. · · '·"· I

I IlEAC'l'IQNS OF DEVELOPED CENTIW.LLY PLnNNED ECONOMY COUm'RIES

i ).

115· In their _statement, the 'East Europe~:.c~untriee attached very great

-i~:trortqnQe to the solution of .the

97(IV) ;~cl''':r'evie<rec1 :the dishonest ·. '.· ._;,

. . I .·· . -

fundnmental, prob~e.ms. enunciated i~ Resolution

rrnd nedative act:i!vi ties of transna.tiona.,l· ... . ·' • . v,(

do;pora~~ons of capit'iilis~ countrieS: in devel(?pinc; : countri~.s. · . 1',

-~i

I

ll6o They 'therefore· particularly insisted th~ .. t rheasures should be adopt13d 1 . , . . . . . . I nt national ::mel ·intern:t:tional. level. to control the:f-activities of trL>nsootional

corporations and put nn end to· the.ir ne[;ative, influence on t!ie·: economic, socio.l

and political situation ·of deveiopin;·: ... ~dun:tries. b.n~ on international economic . •· . . .. . J .. , .. '·

··relations e .. s a whoik·: •. '··.- .,

... QjlSEilVATIONS • I • .. .... ~

11'7~· The Group·-Bf. developinc; countries end developed countries with market

.. economy could. not reach rin agreement on the· implementation· of· these ttvo 1 ~ .•f'() I ; .. ·

-~} .... ·::.i'Resqlutions,

125. The Group of 77 therefore drafted anU <~4~~ted a declaration based I

I

•

on

\ 'I

11 3 ..

CM(984(XXXIII)"

P<:-ge 38

(B) )oll!LTJ;LATERAL TRADE NEGOTIATION,'3 < ·::·.· '

. ·~ THE ·Ail.USIV'. SPIRIT

,. The Arusha document n•tes that, ·in.-'lpite of the commitments contained

in the Tokyo Declaration, so far, durinc the Multilateral 'l'rade Necotiations,

, developed countries have been paying special at"te:>tion to their mutual trade

without consider~ng the interests.and preoccupations of developing countries,

including the least developed among them.

11 9. The conduct .of negotiations 11llich led to a lack of transparency,

compromised the multilateral ch'/-racter .of the n€cotiations and afforded little

so<ipe for effective parti~ipation.by 'develoi)irtj countries • .. >!

\-/hat is more 1 certain ~~?~:'l.~!:§§ .. tenUOO to iifsti tutionalize protectionist

policies presently beine practised by developed_, countries •

. . .;' __ ..,

Consequ-ently., durinc: tho deli.bei~i1tions of· UliiC'l'.!i.D V devol opine; c01mtries

pr.,sented tho proposals swnmarized ·here11nder ainwd at rectifyinc; the negative

nature of oilt;oing multilateral trade ne,,·otiations,

120. The developed countrie-s ware urc;ed to ensure that tho commitments

. conta.ined.'-in the Tol<;yo Declaration to provide special and differential treatment J.:.:. - ...

wor(l offocti.vo;ty·-implcmcnted and mechanism osti1blishod in that. respect, taking

fully into account ··tho wade, development and financial needs of developing

9:0untrics and their ·~mall share in 1;orld ·Gi·ade.

121. Developed countries trcre called upon, before the adoption of the

Final Instruments relating· to the l~TNs, ·co take urgent action to rectify ·the ' ,_ .. ... ··;·.·,c._.··.--·· ... , ~-·····

following si tua ti.ons: .- ·- · · ···- ·

a) Tropical pr•duc·cs

!funy tr~pical prod'ltcts 1 including -thei~. processed forms 1 continue

·to face tariff .and n~-tarif.'f barriers~ The developed countries,

irl ... 'f9Jtformity with ·th.o 1<>;;inmitmonts in the Toky• Declaration,

I

CM/984(XXXIII) .

Page 39

should trca t · tropical products as a spe cial and priority s e ctor{

and r e spor;d. ~avqura,bly t~ r eque s t s ~nf tropical products from , I •·

i~7:v7~-9.~.inc~._. g?~;t~::!,qs..:.:.:to improve the d~velopod countries' offers.

b) Tariffs

I '

1<1a.rzy import<i-nt produets of interest to · deve-loping countrie s ha ve '

: .. _._._ei~-~er bE;len completely cxcludod.-~or su~j6c-ted to ins ignificant : . , :.. .

-- .t a riff cuts. 1\iul tilatc ral ·trade negqtia tions must be continue d I "

.to .achieve substantial tariff reductions~· on these i terns; action .. ,,_ • . , . I . _ : ·• ! • • L

should also ~e - taken to eliminate tariff escalation and r e lated

n~n-tariff measures, especially those l whic::h impede the· processing . : [. . . .

. of raw .mat~rials;in developl.:ng countrJ.c s prior to export •

. c) ,.., ... sw:ntitailive Restrictions

A programme f or the liberali~tion a nd elimination of quantitative • ·;-}· ' .···. • ! ,. • I

restri6t i v e mdasures_; ~~f'~~~~le :t.~ ;~f<?~~~,: from deve loping countrie s

. should ."be' establj.:~hGd. i rruncdia t c ly •

d) Safeguard me asures ' .

./····

A multilate r a l safeguard ~Jstem shoul~ b e 0volvod which would

l ead to g r eater discipline , objcc'Livit Yr transpci.r ency and bettor • . I

surveillance , in order to furthor · t~~~c liberalization and

·prE:s c rve its r esults a~~to provide .. structural tra nsformation . , I ..

in such a \-Jay as to· cnablb tho. devclo~ing countrie s d evelop and

'di ve r "sify their eco~oinics.

,. e) Subs'idic:;s · and: c ompb:nsator$- riglit

1s -, _

, ~ .. -

Tho rig ht of d eve lopinb . ':?·yPtri~s .. . t o) tls e.. c~port and other

s ubs idie s to diversify ti; e ir economic~- and a chi"eve their s ocio­

economic objectives ·of dev6:l~p-moA:t,· ···~J~~ b e l"'0cogni z E:d. The use • I

of.. -f?ubsiqi_Qs. ,lJy .devl.l~op.s;;_d ·c6unt.ri-~~ ~ri .. products directly _competing '•;.:,~ ..• ·:,\~ ·~:-.:; .. ~,-:,,; ••• ,~"":· ,"':: -r" ,t -· ·· ~· . ... .:. • 'l

t"l1:iJ~)l_ p,..r.od~c-f!;s·, :.9f,~,c!_ey..,?,l9P.:;,pg count~_i_q;:;: ~hould not b e allowed.

:· .. :

J .·· ·:: •.

122.

.,. . ~'

......

f) Graduation

~ . .._: r· ;·

CM/934(XXXIII) Page 40

. ....

Tho a:roupof 77 rejected th0 ·"concept of c;raduation" which would

allo1v -d~veloped.' d6iintrics .. to discriminate among developing countries

in a unilateral and arbi:trary manner.

g) Legal framework

'· Tho mail); -~~jective of this was to enable developing countries

establish a ncH lei;al fram&work for difforont~_al treatment in

trade betNcen deVGlopod and deyoloping countries and thus respect

tho commitments contained in tho Tokyo Agroomont.

,-.

UHCTicD 1 s ~

Tho Scc_rotary-Gencral of UiWTAD :·:as requested to submit a report Ni th

· a global evalua_tion of the rcsul. ts of. tho H1'Ns for dovqJoping countries to the . .

Trado and·D&velopment Board, placinr; s:oocial 'emphasis on those Sectors >rhorc the

results ob·caincd had not fully respond6d .-to ,-l;he interests and concerns of the

developing coun rios, and Hith a vim·f to ident;ifying ;:Jossiblo courses of act.:i.on . ',) .. for the a:ttainment of th" objectives of tho developing countries in th0se

negotiations• : • r ••: '

·'·

123. These. countries ;;oro of the opinion that tho N'nl.tilatcral. Trade

Negotiations foll'uithin the. 'erolusivo competence of G~TT and therefore wondered

why this issue had been trans!errod to illW'l~t;Q._

~--.... ,..:.·

':Fill·thcrmoro, they J.comcd tho nouotiations cJ,osod and thoucht it ;ms no ·' "•t

l•ng8r nccoosary to r<l-'Pon discussions· at the ·-level of UJIJC'l'AD.' ·~· .

They ·thcrof,ro invited the dcvolopin:; OOlmtrics concerned to j.?in GATT

and 1

if ne~os."3-;1"'"7 propose amendments to 7 or i<ho revision of 7 tho articles not

satisfact.!'I:Y. +.> them,

•

.• .i:.

124.

. . ' ' . .. .

CM/984(YJCXIII)

'Page 41

I . ThG developed countries further 1..relcomed the positive resuHs achic;vcd

by countries participating in the l~ul tilateral Traq.e Nccotiations 1 and said

silfficient account had boon taken of the in:tm::os-t.;:; :<?f developing countries.

They therefore re1'uted the state,ment tha;t there v1ere too many protectionists.

ineasuros and even referred to their acceptance of \;he principle of non;_

reciprocity~

Regarding the lack of transparency in tho Negotiations, the United

States; the European Economic Cofi~un~~y_and.Jap~n.~xpressed disagreement ~o

this assertion since, accordinG to them, thc;y had ah~ays associated developing . - . countries and. -had often taken account of thoir int0rosts •

.. • One important fact is that the dcvolopod ciountrios with market econoll\Y

refused to accept the idea of the special and differential treatment as the ". . ,. ' '.. . - ·• I

guiding principle in trade relations bct1wen their colli:.tries and developing

countries.

They then rejected the idea that international economic relations ••• , I • ; '

should be basGd on relative economic pmvor and said_ they sho~~d be guided by

rules :.1nd markets.

Recarding the measures intendc;d for_tropipal products, tariffs;

quantit3.tivc restrictions, safc&,-ue.rd sys·Gc.m subsidies and compensatory rights, ... , • , , , . I I

the lec;al framework, etc. they thought the last negotiations had·t~kcn sufficient

account of these. 1

I

' J The developed countries did not a,;reo to a .:;lobD.l evaluation of

~til,_~to;r:~l Trade Nefiotiatiol:J..s by U_~CTAD and ;('elt that, besides the fact

that GATT vas competent in the ficlc}., it l·Jould ~o1n~·ti-tute a , . .ras"te of g~n.+.

resources for· minor ._problems instr-ad ... of: u~inc tho:se resources for other

purposes.-

Conclusion

' As <Y::tn be _soon, the positions of the nog9tiaii>"'":tl wore diametrically

It. was thorofare deemed i;lO"'<POdiont to sst up a opposed. to each other,

Committee to draf-t tho

/

!' •. ~-~~;.;-: ... , -.-.

Resolution.

CM/984(XXXIII) Page.42

Hm-1ovcr, n.t tho close of the Conference, agrp_Cll,lplt \'l.::J.S reached on

th~ followinG p6ints:

a) The Draft Resol-:J.tions of the Grol.,lp of 77 o:.nd of Group B shoul~ . .

be wi thdraun. A general declaration on l•iul tilateral Trade

NE:dotiati·or{itba.sed o~''th~ pertin<::nt objc'~~~~~;::;. p_f .:l;ho Arusha

document sh~~ld b~ ·. d.~hrt~d.

b) Tho Conference deci'de'd. ·:that UNC'l'll.D sho1:1-ld 'continue to Give support . 'f r· · · .. "'

and technical assistance t~- :nembor-countrics participating in the

1'-Iul tilatoral Trade Negotiations• UNCTAD t-.ras further entrusted .

wi il:h the role 'of:· ·re:Viewi~v;~ the results u.nd assossint; the lliul ti-! . ......

latera l Trade NeGotiations.

The results· aehi<:.ved by UNCTAD V .for the r.Iultilat~rc;J.l Trade Ncgo~iations

were poor, or even negative, in spite of United Natio~s General Assembly

Rosoiution 33/154~ paragraph 3 w1ich stipulates that the Fifth Session of the

Conference would offer an· important and opportune o~port~ity speci~A~Y t~ • ' • • • • • .... 1. ~

··review· the proGre·ss made a nd new ·developments concerninG tho cur;r;on'!~ maiil . . • . . . ; . • •.t : •• , r . ' !· .i. ' : •. '", , i .• :;.. • .\. t .

negotiations a rid decide on other appropria te measures•

.. ~ .

J i . . ..

cont 'do ••• o ,;• :- 0 o .. 0 0 : : ; F ~ 0 # ~ 0 o

' ' .::.;_,• .. ..

It:em 12

·MONET.A..RY ·AND; FINANCIAL IS~

.. ;.

126.> ::.'. The~UN'CTAD Secretari-at in its report to the Conference

high:Ligh't'<9d ·the feeiings of the Developing Countrie.s: ca:s.

f'olrows:

''It is no longer tolerable for the r~ch countries to con­

s'ider monetary issues in exclusive ·gatherings. 'As a result the '

developing Countries did suffer the Consequenc'eS "Of the bre~.;-<_:

down •. of .'·the'.·Tnteinvitionai· Monetary d:i.s.order, a;nd· yet thi~rdi-J>_,-;·nJ·

"On debt, the agreement reached on relief' to the LDCs.:;: ... ,"";,

last year· at the meeting. of Trade and Developmeht should be ext'en- ·

ded. An international debt commission, that could look at debt

financing problems in a broader development context sh~uld be

established.

I 11 Financial flows to the developing countries should be

increased substantially and improved as Hell. Ther:e is also an I

urgent need for a medium-term financing facility to bridge the

gap between the present long-term lending of' IBRD and the short­

term loans of the Il1F.

"FUr·th&rihore, the econot'lically developed countries a:twuld

agree. to a date by which they will meet the UN:o.'7'% target for

aid. Developing countriqs should also in addition agree to the I

'crash programme' for LDCs involving a doubling of present aid

in three years."

127. These issues have been in the forefront lof' current North/

South negot_iations, with developing countries ~ress-ing their

v±e,·rs that the 1vorkings of' the international mop-etary system are

not sufficiently responsive to the development~l considerati9ns

and that developed countries are failing to mcel,t the target for

official development assistance (ODA). At UNCThD V two resolutions

w•are adopted and three were sent by the Presideht 1 s contact Group

to the Permanent machinery of' UNCTAD.

. . ,·

128.

·.· .. ... ~ ...

. .. :. ,.

~· .

CI"'./ 9 84 (XXXIII) Page 44

Of tb.ose ad0ptec.;···one designed to promote an element of

greater ·:r le.x;i.b,;;:i:J:fy in monetary system was. put to a vote, while .. · ... ~.. . . , I -' -....._

'the second, devoted t,o increas:j.ng the trans :fer of reai resources

through ODf\. bilateral a.t1.d mul tiJ:ateral channels, was adopted by

concensus .

129.

. :: (A) CONSIDERA.TION OF REOUPEMENTS OF THE INTERNATIONAL

);40NETARY BYST£M WHICH ;voULD FOSTER. \rJORLD TRADE AND :: . . .-

PEVELOP!"'.ENT, · coMPATq:BLE vUXTL'~'HE l<EEDfl....QF A S.U.W-'

FACTORY INTEHNA-fio~ALADJll'STMENT PHOCESS, TAKING

ACCCOUNT OF THE ADVERSE EFFECTS OF FLUCTUATING EX-

CHANGE' 'HATES AND ~JORLD INFLATION, AND IN PAH.TICULAR,

TAKING INTO ACCOUNT THE DEVELOPl·lENT OF Dll:V£LOPING

COUN'"CU£8 AND THEIR NEiWS FOH BALA.NCE-OF-PATI"'.ENTS

SUPPORT

Since the collapse of the Britton v/oods System in 1971,

·the internation<1-l :moneta,r:y sy·stem continues to be characterized

by persista.nt .. disord.er:~· as me::lifested by inf'la tion a..."ld a high . . . ,.. ~· '

degree of exchange rate instability. Experience 'has shm~n that

ad hoc measures to correct tl'le system by '~ay of' the international

adjustment process ha~"e not been: satisfactory as has been evidenced

by the persistence of large payment inbalances, Furthermore 1 attempts undertaken •rithin the International loiJonetary Fund (IMF)

..• ,. . . '" ~. . . ·'

to incre.~se ,.,embers' quotas and rie~r allocations o:f.- Special 'Drawing

Righ't'f\sDRs) has no~ improved the s;i.t,uatio~ appreciablY.,·:·. Fo:r:

one -thing, those chenges only go part of'' the .way 'in meeting the

demands o:f developi:'l.g couni_;ries;: · For. another, these. decisions

i:;o not go .. far· anoue;h in ma~:ing ::tne SDRs the -principal reserve

asse·t s ·for. the· Inte;;-':1-a:tion~l Honetary System, nor in ensuring an .·.

a.quit~l:ile d~,stribut:ion of international liquidity. The gap conti-

U}-1-es to increase betTNeen the de:f.'i.ci t countries, lV'hich are over­

wb:l.ln>i ~l.y d.avelop:ng countries, and the surplus countries, mainly

the ef1onqraically d~veloped.

CPa/934(XXXIII)

Pp.ge 45

130. I

Issues of: im.!ne cl.iate concern to uhich the Ccnference· :turneG. I

. its at'tent:idn •-.;.ras'' tlie· realization that effort~'> should no-t: _,be ex­

'pande'Ci i.n ·patching-·· ~P an ol::l monetary · syst'em ~.rhich. no 1o'nge.r works. ' • • • .l. ·- . ' •.•

In'' t~i.'s >rega:rd, . the atte~ti.on -c'f: ' the C.on:feren·ces · WC';S. f'oc~ss<ed on

issues wt>..i:ch· iriv·~iJ--~=d t'fii.:!' :i-~structuring. of tlie ' e:n't.ire sy~~~~.

1 :3.1 .•. . , These included, .. inter a1ia,

. Sur:v:e:i..~.:)..arice o'r · the e::£change rat~s of the major

~conom;i.c.& i:=1 ·thb --ways- o::' . ensuring a better and more • L •

J ;>a.l..anced . ;i_n.t.ernat:i.onal. ?-dju.stment · pro.cess • ... _.. :t:.'·.

• • • !'"- - • J . ·.::. :: J •T.ays of ensuring: a .better and a mo:re balanced inter-

- national . acljus~ment process --:rfitjJd.i~g an equitable

·.-;f;i:i:·st-r:±'bU:.tion · ·o:t:::i-n t.e.~!i"ii.:~l ~rial.'.:.O,ti:'qu.idi ty and me a sure s

· ·'l'lhi.:eh would: ·t:ia.ke devel-o;>ed -~-c-<?r:i.9:~Y ·surplus countries

and r e s e rve curre ncy countrie·s- ··ac-~ept ·an Gql.+it'able

share of the burden.

The question of the link between; SDR s and deve~~prnent I

fina.'>lce • . ~ .

132 • · Considera tion 'tvas gi. ven to evoiving ·a j ne1-r interna ti.onal

: .[n_onetary system capable o£ b~ing :implemented! .as part of' the New

-International Economic Order (NIEo) ·.

1-33. The NIEO monetary system must be such_ as to enab1e qevelop-

i:n.g countr:i..e s to rriaintain d c ve1opr.-;ent programmes in the £ace o£ . :·. I -\ . .• . . . . .

unexpected c~anges and ex~ernal shocks fro~ the econpmics, of' the . . :•

The ~IBO should. be 'capab~~ of allo~~ng for • : ._ ' J • • . ' 1 \'·· ; ~ -

:financial r~source s oh rncdium-·!;_erm ina ';J:ri.ty

develoved co~ntries. - ~ ;; :. .

j . . • . •

the :flow of .adD qua t e .. . . ... " I

'by' e x:i:sting m:ul t:ilatera: .financi e~·. ancf' nionet;ary .insti tut:ipns f or

th~ :financing :.."leeC:.s of' the devc1·opin~' c'o~~t-~ies ~ ari.d oh - -c~hditions "'hich wer·e ' ~upport'iire· o'l! med:i.um.=.:te~m .d~velopment· 'bb-jectl..vcs of

develo-ping ·couri:b:·~~s ~.x:Perienc{ng ·di.f'ficult~es .. in -p~~:lr balance

of payments.

1 Jl+. - . '

CM/924(XXXIII) Page 46

The. attention of' the Conference also focussed on the new

monetary system, which must ·provide ·d~veloping countries ldth

. compensatory f'in~ncing f'or shor,t:t'al;ts in the purchasing power of . ,.

theip .. export's",.a':~hhe·lp them f:!-11>:'-J:!.Ce their inputs: The compensa-' \ . •" . - . . -~-· ..

tm:'y financing facilities should'.be reformed a...--J.d liberalized to

fully corrroensate for the shortfalls r~sulting :from exchanges in . - ~ . ' . . relative prices and shortfalls in volume of ex~orts·measured . .··,,.

acco'rding to a trend.-rate of growth. ·-· '"-{

.. ~ .... ~ : . '

'1 3.); , Furtherbore., the :following recommend.ations of the Group

of 24 were brought to the attention of. the Conference for its

.'.'·

accep'tancG~-

. • ..

, .• ·

, i) ·.:'-The limit. :of' out-standing dra1vings "uz:1,der the-:!, IMF

Compensatory Financing Fac±·lit:les ,shQuld be> fron ,, . ' . .. .... -·. ··' ·'

75% to .JOGJG.··h:f''the me!!lber's·;;:iuota. Drawing in a..."<Y i'' ~= .

12 ·mont~1. period shoulq, be increased :from .50~~.to

100%.

ii) The- present repayment period of J to ·~ years shou:I_d

be f'rom.5 to 7 years. '.

iii) Countries should be ,given the ''.\, .. choice of'· b8:sing, the

. . ·Calculation of the ·shortfalls on their total receipt

... · :f:vorn· c;ommodi'ty exports or the co.rnbi!J.'ElG. re·ceipts :from

exports and services; ..

iv ):.i .· . .In the c.f>:I;cula tion of the shortfalls account should

. • ... l3e · t"aken of' the incr~ase in the price .. of' 'impor·ts o

v)

'. -~ .........

Increased import volume.res)llting"f;;cm ~limatic or

ether ·.factors bey~;;:~::· the ·control' <;>f'. the. country con­

cerned should 'also be ·taken.irito account in

calcula i;:j.ng the'·· lihortf'ail·s.

·vi) Dra1~ing under the f'acili ty should not be subject to

any credit :tranche coridit:Lonallty •. , .. - .

. . ,"

vii)

viii)

ix)

Even when the clla..L~cr..s. . .ro:r.· the

Faoi.lities are lower than the

ICM/984(XY.XIII)

~age '+7. ' I

coffinensatory Financing -i- .• Co~uercial rate, the

annual rate ox""'

period during

~~-.J/ B% should be thaintaii:J.ed: for the .. j '

~1hich· this service; is be:ing._ provided.

I '

A -:subsidy account: to Clonal.J1e clAvU1 Ol;)ing. ~-ountries, ' .

in particular the LDC, ·to borro\¥~·fro:n- DiF s~pplamen­'

·tary fac:ility ·be created.-I I

re structur:i.ng. I

An i~ternationel Conference on

ints-rnationu.l monetary system bel convened at ·. ' ..

. t ~-a:rpropr1~; e t.J..me. .· ..

the

an

The .7roup of 77 Hember countries submitted a.resolution

on the bas:l.s of. the above recommendations to 1 the negotiating

group on the item.

1

137 • The s:oo!<<>sman f::>r Group D stated.' 'that !Us .Grou;_:> >fiP not; I

in a position to take active role in the negotiations ov. IMF and . . I . IBRD monetary system. e;i.nc'e the two' bodies op:erate on a Jystem

which is different f~b~' that of' (CMEA) Counc,il :fo;- Hut.tal Economic . I . Assistance. He, however, stated that his group l\'aS i.• complete

agi-e.ement .wi_t,h_ the positi'on of Group o:f 77 p!os:i:t:i.on th:t there •- • • ' I'

·· was a,-,,,urgent need :f.or a complete internatiNLi.t.l monet£•y reform. - , -:... - r · :· .. : ,. .. . , 1

China simply stated that she "'suiipO"rted tlJ.e -position of the Group - ' of 77.

,. . . ·'

Position of Group B countrie~

~ ~:. In r~SJ,.onse to the request· of Group o~. 77 countr:lll I

Group B tabled i+.s resolut~ion .on the item. 1Tr1.ey rejecte< the

proposal .of the Grou:i:l of' 77 to esLo.l-Jl:ish an k.d Hoc g.coup ex­

perts in UNCTAD to vlork. ,C".t t~1.e w!'l.ole ~'l.SU<> olf' IntornRt:ivua. - . . . . I monetary ref'orrri. Group· B insisted ;obrou~;~"O'-';t tha·!; UNCTAD sl. ld

not· 1'e g~ver1; any brief' to interv:ene in monet~.~y af:faJ..rs t,.rhich "e

presently the jurisdict,ion o:f Il1F and IBRD.j

I

I

\ .. '• .. ,

CM/984(JCXXIII)

Page. 48.

· .. !:

With re·gard to new medium-term lending :faciliti.-,s a."'"l.d

establisr...ment o:f lend:i;ng betl~een Sill1 creation and development

:financing, they-•insisted tho>.t the Conference must await the

outcome of the report of the Joint Development Committee ·o:f the

Il..W-andi:l3J:lP 1--which will be presented next September (1979). . . . . .. ··--·--·····--- .. ·-----~-.

Position of NOHDIC, countr.ics

140. Sweden on behalf of. the Nordic countries expressed its

belief that full attention-should be given by the Conference

to ·the possibility of evolving a co-operative programme for

increased transfer of resources to tho developing countries. whose

ait1 ··s~J.ould be .a -:fi-rm ahcl. cohererit two-Prong9d approach: . ,, .

FIRSTg · ODA should rapidly and substantially be

-·increased in particular by those developed

cc-untries '"hich have no,t yet attained .the

0. 7"/o target. ,. . .. ' ;;

.s:scmm': ·.More· determined efforts ·should be. made to :fir;t.O,:;.·

ne\1' w·ays to promote substantial i1;1cr~ase =i:l1: q"t;_ft§:.t;

:forrns o:f resources transfers in c..d.dition to ODA,

. ' .. · not only with a .vieW -~o· supporting tl;tc ctevelo.!)'~e,nt

ef'f"or·ts· of the ·-r0ceip?-ent countries but also to;·_

help stimulate global economy as a vrhole.

1 ;;.1 < l•Jith regard to multilateral guara.."'"l.tee for developing

countries bo:rrowing, Nordic countries vrent along the Group ox' 77

l:eque.F-t., i .. e. Developing countries wishing to borrow r.~ust be: in

_a position to obtain guljl.l;'_antee with. a v:i:ew. to increasing their

.. bredit .- Standing· vis-~-'-vis int~~nation~j- financial in..~U. tutions,

old- .established one as ·the lBRD and .the· regional de,,.:l-OpGJei;J,t bunk

as '·weil as other regional and· subregional ins.ti tu>.i;ons, ·.which

are not active in this :field. ·-.This· proposal ,,:-_.s turned- down by

the rest of tlle Group B countries.

,,

iCH/984(XXXIII)

. ~· :Pag~ 49

142. On the whole, the group could not

I .. -". . ' speak lvith one voice

I .

becaUse of th0 differences betweon them. I

·I :.!:.~:. .

~l WflS adopted -~;-~~~~---··"'· ;.> .:.

11+3. .,!!'his r~solutiOJ:l was .. put .to ·fl vote

Conf'erence,·69 tci 19· against with. 13 abstanticn·;·· ' .

' in favour ' 1... . ,, : ..

··~ '···

(B) • . . .. :·1 •• f ·. . .

t-1EASURES ·.TO AUGMENT THE NET ·FLOltl .AND: IMPROVE THE I

CmiDITIONS OF RESOURCES TRA!'l'SFERS FROM DEVELOPED'·.

TO DEVELOPING COUNTRIES

"

OFFICIAL DEVELOPMENT AID (ODAt ' f'

Bilateral Aid:

144' Considering the ODA 0.7% tar.get -set in the International

Development Strategy, the Group of 77 countries brough'\-'-'.'t.o the '·.~' ·~ I

'a'ti'tention o:C .. :the Conference the'· poor J:'.esult's so far achieved. . . - - ' :-: . Group of 77 cxp~.e~sed ~cindern, ~specially pver the negative re-

- ·.· ·' · .- · · ·c. . :r . :· :1 : •. ,_

·action of the thr")e mcist 'd'evelci1)ed market e:conomies, i.e. United

States, Federal Republic of German)• and Jap'an. This situation • I

resulted in thwarting the efforts undertaken by developing I

countries to adjust their economies and constituted a factor in-

:t>.Lbiting growth~ .. . '·'

···,

· 14·5~:1: c'l:he Grqup of 77 <o'oti.."l.tries al'?O brought to the· attentj_-'<m

·'•.:·o:f .. t·he .. Confe;~~;;~'·that th~ Socialist ·c(:mnt.xlies should also . -~ . . ~ . contribute itn a more effective manner to the ODA and to commit ' . .

themselve.s more resolutely in this -regard. ; The Socialist Eastern

.European countries 'were ais'o urge.d to increase their dev·elopment • ;; I

assistance to

OJ:]. such flows.

satisfa,ctory ·level·s

These should be, .a

and pro~ide full-information

gener~l ,increase in real terms . . I

in_the present total ODA flpw to all dev~l~ping countries and itn

the context of the general increase the qwoint.um in real terms . I .

of ODA flows to LDCs. Mos.t seriously affected .countries, land-. . . , . ·.• • I .. . '

locked a."'l.d island developing countries sl.J.o:q.ld be doubled 'vithin

the shortest possible time

19r_;1 •

' and, in any

•·

I event,

i

not later than

·":.i

.. , CM/984(:XXZIII) Page 50

146o It should be mentioned here that Norway,' Netherlands and

S\;eden exceeded the 0, 7% target and have ple'dgecl .to .reach the. !' 1 ·•··· .. -target of one per cent of·· their GNPs •

... ,.

147. 1>/ithout prejudic~c'i'6 whatever target that may be set for

the Third Development Decade; the Group of 77 proposed that tha

Conf'erence should :r·ormulate its· pr·ograome ot: ir..1mediate measure~

:by t~ach developed _donor .coun,try ·in f'orm of' a bi;nding colli.ztitmen.;t.· ... , . ··'-· ·: ~ '

for an annual gro•..,th of· ODA disbursements for each of tho next ·:;. ' . :":.

three years. In particular., the Conference 1 s att.ention ~ms

clra1-m to the, proposal· t:q.at the U~ited States~ the Federal

Hepu.blic of Ge:i. ... mal"l:y and Japan sh0uld raise the-ir CDA disbursements

at least by 25% per year .for e·ach of' the next three years in real

terms so as to double their 4isbursem~nt. by th~· en¢ of'' t11e period.

The transfer Of resources shpuld be d.epoliticiz·ed and

placed on an increasingly assured, contilf.\.l.OUS and on automatic

basis and achievo a rational and equitab;<~;. -~~istr:rbti·tiSii among . ' .·

developinP" · countri·os taking d.nto account. dif'f'erent levels o:f .. ~ <•

development •. - ' .. , ' .

, 1~9.

.. -.

In this connection, the quality of ODA should be improved

':I.

ODA to LDC.'should be in gran:ts. or at least on 95% . ' .. concessionality.

J ••..

Definition of ODA should .. be modified to

b·.;, net 'of' ·amortization. and interest payme'nt.s. . ' .. ·' .. :,J

', .. . : ~

,. r J ••• ,~ .' •

Loans ·w·ith lEiss than 50"/o grant elements should ; ....

not qualify ·as ODA.

ODA should be united and 7?rogrammes assistance

should be increa~ed as.agai~st project assistance.

Local cost ~in.ancing should be provided.

Greater preferential margins should be a~l.owed to

develoning countr:i o~~" ~appi.iors :i.n tho- c-.Jntext o.""?

.... \ .. _ ·' ·' •;'.

1 50.

;_ -... \

CM/98il(Y..XXIII) I .

Page 51 I

I ... -· . . I. '.'

international bidding for nrojects financed by - I . . ..

multilateral financing institutio~s.

Multilateral Assistru~ce . " ' :i

In vie11 of' the size and increasing :fihancial needs of the

developing countries·, ·j_t· 1;vas bro1lght ·to the .. ~ttent:ion of' the

Conference, t·ha t there was a ne od

crease of ca9ital of ~ultilateral

for substantial ~d ra9id in-1 •

credit ins1ti,tutions so as '-to

ensure tllFtt th0:ir commitments in ·favour of' developing cou11.tries

and· in particular tc LDCs., increased in r_ea~ terms at a satis-1

factory rate and were consistent w:i:th the m~eds of those court tries.

151.

·.r

. :._ ·. _,.

1 .5?.

The~ mas.sive transfer of resources should: I

Increase under the collective guarantee of the ' .

internaticmal ·community in .intellnaticnal capital

market with an interest subsidylscheme as appro­

priate cfor pr:pje·ct s develop~ent: ;;_nd execution and:.

?rogramme finance pur?oseo

I, . Be compa-tible 'dth the devclopm~nt priorities of

'

developing countries and its terms and conditions

should be consistent with their debt servicing .. '

capacity O'\f~r- .tho ... lorigcr>period. I

'I Be given special attention to the needs, of the LDCs

I anC. most. scrious1y ·af"Ie'ct Gd couhtrie s.

I

There should be an urgent and subst~tial general increase

of the capital bl'l.~e of 'multilateral financiial institutions in-:

eluding both the IB:~Ii ?.nd the regional d:cvellopmemt financial

institutions provided by developed countrieis so as to ensure

that their· commitments .in f'avour·o:f C!eveloping countries increased I

in·real terms at a satisfactory rate and were consistent with I

the'necds of those countries, I

. . .. . ..... : .. ~ . ·~ ,;

... · .. ' . .. , -~ '• >":".

158.

'. CH/984(XXXIII)

Page 53

The princi~)al·arbitrary "f'inancial_graclati.on" which is being

established in the IBRD and other international financial in­

stitutions providing non-concessional 'finance should be 'rejected.

And :the problems should be resol:,.ed 'by establ;j.sh:i:ng oiije'ctive

criteria through-negotiations uith equal· re~)resentation an<;i voice,

·, .. Private. Flows

--'

159. While acknowledging the ne'ccl for private flmvs, such flows

should not in any way undermine the targets set_ for concessiona].

flows. Moreover, private flows. should be fully consistent with

the socio-economic priorities of developin_g countries~-

i) Within this context the recommendations of IBRD/

IHF development Committee at Manila in Sept!'mber,

19.76, 'should be implemented expeditiously to help

:cemove the present administration and institutional

obstacles imponcling the access o:f developing countries I

to private capital '!'al,"ke't;

ii) · Private dire<;:t investment.· should be compatible with

the na,ti'onal legislation and development priori ties

of host countries and. in particular allow host

countries to enjoy increased local participation in

management, admini'stration, 'employment and on-the-

iii)

' job tr.aining :for local man-power as well as local

participation. in ownership. The codes 'of conduct

governing the activities of TNCs which meet the

interest of all parties concerned should be defined I

urgently,

·Multilateral financing iZ:.s'titu.tions ·should consider .'

undert~k:ing' joint-financing af.r~genient aft'er study

and detailed exarriina tion' in accordance \d th the

priorities 9f the countries concernedo

•

153.

CN/5'iJ4(XXXIII) Page 52

Sine~ IDA plays ~ major role in transfer of resources to

the LDCs, ·the sixtb. replenishments should be ef'f'octive without

deJ_ay and sJ;lould result in significant real resources .

. !'_egard, there should be co-ordination regarding tho replonish-

.

t ~ ·f'·t loansf' th · 1 d ~,~ t b k t lt men OJ. so · / o . e .. reg1ona..... ev-~pmen an s so as o resu

in inCreaSed· 10nding capqcity in real terms.

-· 154. In order to make optimal use of' tho resour·ces ·of ·multi-

lateral financial institutions, the IBRD and region~l' develop;__,-,··;;.

mont banks should!-

155.

i) modify their rules and -procedures in granting loans

to develo;oing countries in order to avoid delays in

implementation and disbursements.

ii) provide increasing tecl111ical assistance both for

'project development and execution.

iii)

• .'1

The programme for lending of the multilateral finan­

cial institutions should be increased to make it

equal to at least 25% of' the institutions and should

become increasingly responsive to the ovGrall priori­

ties and, in particular, the sec:toral priorities of.

the. recipient clevelopi;!g countries·, including the

provision of adequate local cost financing,

Tho Third 1-linc'.oi<' of' the. Morld Bank should be revivod . ~ .· .

so as to make. mo~e f'iex:U.)1e.:·the ,pfl,ttern of resources availabl0 ·:, to developing countrie's';'··:,,

156. To enable the develop:i,ng ooun:tri~-s ·-to· industrialize, the

~lorld Bank should finance the ;p_prchasc of those capital goods - '

by gran~ing loans under favourable concliti·cins; especially with

regard to interest rates and grace period·,

157. Tho f'inancing o:f tho operation of' UNDP and other rGlated

UN Agenc-iGs should ·be pla,nned to cover several yoars in view of

~h0 multi-year nature of.progr~mmo of their operations.

• • I' :•,: '''

cM/9 s4 ( :XY.Xni) Page 54

160. Attention should bo given .. to the Cst'ablishment of' a

S¢parate' r.mltilateral guarantee fpr .the· borrowings of inJerested

., deveJ:oping C~tmtries and to the;_!'jlllenGi'ments of approriate

.articles of cig-i-eeme::>t of multilaterai financial institutions

in order· to e-nable them provide guarantees more easily, including

partial-guarantees on the borrowing of interested developing

COUntries from private capital markets. These steps should be

taken· in such a way as_ t·o ensure• th~:t they bring additi.onal_

ca!,Jital :flows to the qeveloping countries concerned and do not

in arif' way adversely _affect the acce'ss to capital: markets already

enjoyed by some countries as well as by multilateral :financial

., institutions.

Hultilateral Exnort Credit Guarantee Facilities . ; l

.,, ; •·. j' t ~ ,; .( :. ''• ~··

161. ifuereas mU:ltilat.eral .f.inaricial···inst:i'futio~~-_hav'e .the-,c;:apa­

city to extend· guar~tees. t.o. enable--thei:r ili'embe'rs to ~obilize . . ~ ~. ,. -. . . . •: . . ,-.. ' :.. . I' I ".( ' .. • •

n,fsources from the.private capital market;· they have not so f'!'IZ' ., .. ~

provided g;,arantees in any: significant volume~. Sinc;:e such

guarantees are considered by their articles <;>f agreements as

being equivalent to loans. In this connection,

of the Conference focussed on:-

the attention

; ·.:~ .: : i

162.

a) A recommendation to establish a separate multilateral

guarantee facility. for the 'interested developing

countr:Le_s .• ' . b)

i A recommenda-tion to amend 'the· articles. o:f. a,,greement

! ' '!.. ; ·: ' ·•

of mul tila;teral financiri'g i'iisti tutions' to allow them

to provide guarantees more easily, including partial ... • ,1:-, '.::.··

·.-· .. - .. - . -·- ---. .

'r •·• .. :

The Group of 77 countrie's tabled its res.olution based on ·!' ',,.

the--' above recommendations and proposals;

.,, .

163. Group D countries refused to be t~e~ted on the same footings

1.rith the capitalist countries on the question of the transfer of •

CM/984(XXXIII)

Page 55

multilateral resources to developing countries in fixed volume

and their particir,>ation during the,negotiation·cn those issues

was nothing but that of somewhat disinterested observers,·

164 .•. , , Grd~p.B. countr;ies refused to ·agree to any ·date· being set

for-the_ target: of 0.7"/o. ,The Group also had prs>bl~ms,.in.using thQ

UN El.\<Cepted terminolog:i,.e ey _.l!ike LDC, l-ISA, .. etc. ?'lld rather ·profer;red . --· . ' ..... tp use expressions as '!cJ,eve:J,oping. countries" and. "the p-oorest

8J"110ng them."

After three weeks of long negotiations, a concensus was

reached on c-;;;:dit:t-on ... that the question of the est,ablishment of' a

- ~6iSarate m',llt-ila teral guaranteG f'aciJ.ity :for the bcrrdwings of

inte"reS~ecl dev~_lop.:t!lg coUt1tries land t~ the -~.mc!idments--~Of~. aDpro-. - -- - . - -

priate a·rtiCies of e.greeman_t of :nultil.q .. teral_ :fi~ancial institutions

in order to enaP1;e them to ·provi_de guarantees ~1ore. easily; i~c.ltid­

inB partial g'...IB:ra..~te:es on t~1.~ b9rrowings of inter~S-t"cd devel:op::lng

cb'Untries :from 9:r'~vatc c:apital ,marl~ets o Thes_e_ steps 'Sho_ul~ .. be

taken in such a ;~ay as to ensure that they bring additional. f •• •..! ~- ' - ' • '

capital flows to the develouing countries concerned and1do not in . - . . . - .

any way adversely affect the access to capital markets already ' . ' . . :

enjoyed by some developing countries with multilateral financial

institutions. The 'question was re:ferred to Trade and Development

Board of' UNCTAD •.

. ' '

.:. ~· · Position o:f-·Nordic Countries .... ::

~~; . .' ' :' ; .. ···=· • ... · .. ,

166. speaking on. bchEtif of N"-ordtc_;_cc:uritries carne ~ . ' , f . • -~ :

demand that the-industrial countries should • • • r • ' ' . •

out

1vith a str~.ng adjust

thoir. clo~nestic economy with a .:-:view t9 f'ul:fil,i~ng their _interna-··

ticnal obligation~!-. :. Swaden also acc·used. _G:~~~~:p ri · Countri.e·s for '•

being indifferent ~nd urged that Group D should be considered

like those industrial countries and contribute the UN 0. 7~', target, . .

C. DEBT PHOBLEMS OF DEVELOPTIJG COUNTRIES

- \' . ; '-

:The- Third 1;J'orld. 1 s clc'bts today arc: :_JUt at ne?trly 3,09 ~;l~lion.

The ~roup oi 77, while acknov1lcdging the Gffort s of' some de vel o:_:>ed

countries in ta.l<:ing stops to alloviate the debts the LDCs,

,.

i .·

CH/93l.t(XXXIII) Page 56

land-locked and island develoying countries, urged the developed

countries _whip~ hav(":J not yet done so, to take, as early as pos-

sible ·the .!?-~ecessar'y,.: st·eps, .. to f'ully implement retrotictivo term

adjustm?nt_ ~ccordihg to. Resolution 165( S-IX) • . .

163. The Group·· of' 77 countr:t,es al.so proposed th6 establishment

Of an Internatio~~l D-?_bt Com:niss~on 9 comprisi~g ~r:Ii~ent ~ul;>li_c f'igures with recognised knm-;ledge :aiid .• P;xperience of' debt and . . .. .._ , ,, 'l :

econo,m:i'c··developm~nt problems, with the intention.'that any . . . . { '

.. ::?:~i:n.t.§rested de""ei,;pi_rig ~ounfry 1<hich: believes it has or

--·-a~~1~;-~ '~;::otiiein·:coul.d ~~dre;s itself to th~~:Oommission. may have

; -~--~ __ . ··.,, ... ~.:..:.;:. .. ,· .... .;.•.-::..·:-- •. ; .. : ;<

: -:-:··. ''··

.. ..:.;::. . __

.... 1. <:.:xa..tni:p.e tho debt· end devclcpment problctils exclus.ivBly

at tl1e .. initiative ' ·'· .

of the reques-ting country. : -.

2. in ti1.e light of sUch exami'na tiori and· in acc·ordq.nce

Vliti"l the ~ocl.ali ties of ~he de.tailed Iee.tures, ~ako

recommendations 'on measures required ·to deal with • tho dob.t problems in tho broacler context of: dGvelop-

ment, including ~easures of debt rcorganisat~9:~ and

.,, additional bilateral ci11:d mU.ltil8.tcrai finance~ and

:·. "' . . ... , ... J. convene a meeting o:f all part~Cs' 8oncerned-, !i!,:j.th a

vic" to implementing the recommendations under (2)

Based on the above recommendation, the Group of: 77 countries

tabled a rescJ,ut.:i,.9n "hich -.,.,;,_;, rejected by Group B. PoU.."ltries 1<hich ... ?refered to hEt·n<;l;I.e the''·ctebt probl.em on case by case basis and/or

in the Paris club of Credits. ,,_ ....

';

170. It is vTO:r:th mentioning here that the UNCTAD report pin-

.. po,inted ·wide diff'?.rcmc;'is in the way Wes.tern"'ccuntr'ies have helped

the LDCs meet th.o.ir debts'.: ·'The· renort shows, f'or cxamulc, that •. . . •. . .. ·' . . - ' . . . ' . ...

the United Kingdom had.writtori-c;J::f,.neb'#~ .. tatalling $1,612 mi;I..lion,

'> ..._

CM/984(Xxxiii).

Page 57

while the United States had wri tton off a mere ~;19 milliol} official debts owed to

the USJi Government which Here estims.-~ecl-a-r$8,··9'34 million. Four ether -~/estern countries, which have loaned over $1 billion to the poores·t countries nMnely

France, vlest Germany 1 Japan and Canada, h~we reduced their official debts by 8%,

.41~ 1 30)/, and 25)1, re_spectively. It is >~orth pointinr; out that tho· United Stat0s

recognises only 16 countries as LDC 1 instead of the accepted U1l'numb8r of 30.

D;. REVllivl OF l'RE _ _Y._?.B:>EHT :SYSTL'M OF Il'II'EIDlA'riONAL FINANC;Ilil,

CO-OPillllil.TION IN ':i'HE COH'l'EXT OF ·fiORLD TRADE A~nJ DEVJI:LOPi"iEN'l'

. -,.Jill CONSIDEIU~TION _OJ!' \U,YS Aim i\JE,,NS ~IITHIN THIS CON'l.'i;X~' 'i'Q

lii11KE IT J[QJ:Cl!!. EFJt&TJYE. ItT CONTRIBUTING TO '.i'HTI: DEVELOPMENT

OF· DEVELOPING COUi'l'rEIBS ____ , _________ _ ..,_;.

171. Under this sub ... itel)l 1 the Conference had before it a report by the

UNC'J.'ilD Secretariat entitled "Towards .. 'm effective .. system of International

Financial Go-operation".

172. The Conference also had before i'G the position of the 'Group of 77 on

tliis sub-i tern as set O'Ut in the iirusha Prot:ramme.

1-7.3. · ~ The G.roup of 77 countries based their posit ion on the "rusha. Pro.:;-rc:mme . '

t_cibled a 'f:esolution Nhi_ch ~r alii:; had the folloHin;; objectives:

a) -..

.,

b)

Ensures the transfer of adeqlia te real economic resou1·ces to

. _developinc; countries to )lleet the external cr:.pi tal needed to

The form and composition of capital flows should be consistent '

with the development plans of recipient developing countries

and fully responsive to their investment and

priorities including sectoral allocations.

development

c) The transfer of real resources should be on terms commensurate

~i th the debt ser:viciiJG capacity of the developiil€ countries and

·their mm development objectives. This ~iould imply that notwith-

... :··

·' ..

;·· CM/',)84(XXXIII)

·'··' .. ;-.J, .. ,,.: Page 58

standing the ·importancEC_of· private flows the bulk of the resources

transfer should be in the form of concessional flows.

d) The developed •COlL~triEs that had failed so far to reach the oruc tarcet, should sharply increase their orul to reach .this inter­

nationally accep·ted tarGet.

e) Private capital flows to developing countries should be sustained

on improved terms and conditions. Capital market re6ulations in

developed countries should be liberalized in order to ensure the

improved access of develo;Jinr; countries to ·thE>se markets,

f) In the. context of transfer of resources to developing countries

the need for more concessiona;t transfer to least d~veloped, most

seriously affected countries and other speci~l oater;orios of

developinG coun·tries should receive special attention.

g) In additien to se0uring adequate lone-term capital flous the

system of international financial co-operation should provide

necessar,y financial resources including fund quota increasES,

lonc;-term balance-of-payments fO.nancir.o; and compensdor,y finance

. to offset shortfalls in the })urchasinc p01·1er of exports and to

meet unforeseen import and needs of individual developinG.

countries.

h) The policies of multilateral financial _and monetar,y institutions

and their treatment of individlk"-1 countries should be fully

consistent 1-1i th the priori'Gies and development objectives

established by the internaticmal community in the United Nations

General Assembly,

i) Developing countries should enjoy an equi tc.ble share in the

decision.,-maki!l(; process at the international level on matters

affecting the in·oernc.ticnn.l monetn.r,y and fim.ncial systems

including decision~~kinG in specializetl acencies competent in

these aren.s •.

174.

L ~~ .

--n: .. ·.~ , , .

CM/984(XXXIII)

Page 59

j) There should be regular monitoring to ensure that in effective

functioning of any of thE: components of the system of interne.tionc.l

financial co-operation is remedied promptly.

The draft resolution was ne-G discussod at all and th0 Conference reforre:c1

it- to "J;rade e.nd Dev0lopment. Board of UNCT".D. '

···'

·.

' .....

, . . . ..

co.nt 'd" 'II! o ......

,•

,-_

ITI;H 13

A.

.. · .. ·· -~ ...

. _;r'"'.:·. :·:.: ~

CM/ 9. 84 (XXXIII)

Page 50

···f .• '

T ., l.:.J c H li 0 L 0 G y

IHTI:PJ/,;. TIOk:.L CODD OF CGHDU CT Oll ~m; 'I'llli.NSlrTI:R OF TJ~CI·mOLOGY

POSITION OF GROUP OTI' 77

' The Group of J7 Nas not satisfied t-~~ th thcyro(trcss made at the

cr.nforonce on a code of conduct for the transfer of technoloGY.

It emphasized that the procress r.1adc :ms due to the some~1hat unilateral

. \ ---- --· ...

'/,

'l'hat was why, by a::;>poaling to tho political :('loxibili ty and will of other

croups during the negotidions, it reiterated the following position on the ·' . ~ •t .

. .-...

a) Tho c6de should ho applicable to operation;=: or a:i-ra.n.go:i1C_~~ts., ,_,_ . , · ...

bet\;ocn 'Ghc parent compan,y cUld tho branch in tho host country; ·

or 'cc-theen branches and affiliated ent~..:rprises of the.: same firra

irlheruv.:.:r ·they raay be.

b)-- T.l:1e restrictive ~ractices. -Shli_:.ld_~ aim __ a:t tl1e supp!OSsio_n of

P-l~aCticoS \Jhich. h;.:l..vd ad.Vdrs"C Gffcct~ ·on the Social ap.d Economic

DGvclopwwnt of. tho couhtri.'es, cvnccrncd, especially devGlopinG

.. r · c-ot:tn-trics,

c)

,. I

The Conferuncc should adopt a ·legally binding an4 applicable

uni VOrsal CoCJ.e of conduct as 011<3 of tli.G key instrm.:cnts Hhich

e:oulcl ct\li'tribu.to to· tho sGi'ting up cif ·a new intllrnatfonal ·

econor.1ic orclor.

d) 'l'he lc.::;islation, applioa:)lo to operatbns of transfer of

technolocy 1 shoe1ld be, in particular·, when it deals with issuoo

rolatin~· .to public interest 1 tlie:t of tl"3 •iwst country. · :;rbi tra­

tion shoo.ld be acceptud as ?- moo.ns of' setting diff'erOJ:!COS if

CM/984(XXXIII).

Page 61

the moclc of selection, arbitration J,!lcl the procedu.re accepted

1·:ere impartial c.ncl fnot and !·;ere not contrary to the law· of

tl1o host country.

·. 176 •. ., ·Tho cJ.raf.t ... rosolution of the Grciup of -77 requested the Secret-ary

General 'of. UNC'1~.D. :v :to: .t>:.J~e .. ti<e ·no'aes-s=y ·mo1i:su:!<e;s fo~- i)()ii\iening, in the laGt

quarter of 19791 a resumed Ges-si·on ·of· t-he Confer"ncc inorder to co-nclude

the elaboration of an intcrno..tional code of >Jonduct on the t.._ansfer of

technoloi--;y.

177 ~ Ii\trthcrmore, tho Ul.YC;•:C:ill Jccre·Gary General, the President of the

Conference ancl thG Ghu.irLlBn of the Hol'kill(.J' Groups of t'lle:.:·C~~~{~~cnc~~-· ;J~re illvit.ed to revictv th_c i!lajor cuts"Ganc1ing issue's ~d to dra\..r up, as i:lti.oh as

possible corJ:promioe proposals on tho:J1e

178. Tho factor :1hich contributed to the failure of the norrotiations 't·;a.s

that the dovclopccl market oconoi~\Y countries sho::.)p.od tJ.J.C d.iscussions avoidinrr

:.to pronounce "GhcmGclvos on the su:JstD..nce, and ;:.K~·rcly i:1clcing declarations on

'the. lc.:·g~.l stn:Gus of· the Code.·

The dl'c,ft resolution ·•·:hich they l3UCJ>Ji ttcd to t'co Conference ••as devoid of

subst3.nco. r.rhoro poni tion re,.Jaint..d UJ.'1Changcd since ·tho bet~inni!l[; ot the

Gonferunce.

r11-wy rocQi;mendcd th<>t tb.c United l'iationo Conference adopt the Code

in the fOrm on non oblig::1tory :::,uiclinc principles v;i th an· e'fficient intern:~.tio­

nai institutj.onal ::1achinery responsible to follo\·J up tLc situation concerning

the Code and to fucili t:1te the achitvewcnt of i·Gs aims .as vrell as provisions

aTTane;inc· for n ro-cxa.lilinatiOn of· all t~ ... u ·aSpects of the Code ?-:t B.ll appropriate

dc..te aft~r i·Ls aclopt;ion.

On thG other hand they felt that the United Nations Conforonce on a code of

conduct 0n the transfer of -~oclmoloty r~'l.d made considerable progress.

'

~ -·

CM/984(XXXIII) Page 62

-1 80 • · Tho c1evcloped r.nrkct cconoi1\Y coctntries refused to discuss other

aspects of tho Code and r;"Jcrely defended till tho ond of th.e discussions their

only position on the l0gal status,

. ' (81. The e:;roc;.p of socialist count~ies .. :Of East J9J.ropc ~:mb1a~ tt~d C;J. draft

·. , .. resolution 11l1ich tvas very interdi'ti~::; fo_r the._ developing countries,

·' \.

,•',. ·.'.\.

-~'heir pcsi tion c?uld he up as folloNS:

a) The Socialist cou~t-ri·c'ri"t8.lco note of the results already

,,_~_;!}~~:'ob~aiiiod~:froi~ tho negotiati~~;- relatino; t~'- ·-the Code,

b). ~11ey opt for a uni vcrsal a;1plication code bearing on all

aspects of tech.n6loc:y. which can be considorcd as international

by nature and air,Ji.ng at all the stages of transfer of techno­

lO~,Y opere.tionD i:L'rcspocti y.e o:t their economic and social

syst"em or' level of development~

_o) The Code" should ;1e 10gally ~indint;. _ In case it scwuld contain

provisions 'that ao;;1e sboLCld ;1e lo:;ally binding and others • ap1>roval ·th8 chapters r·olating tc;> definition 'and field of

a;1plicati"on 1 . aims and principles 1 special treat;;;cnts to be . '

accorded to detrelopinc;' countries 1 rostric'j;i vo business practices

and intcr~c.-Gional collaboration .,should constitute b<:tsic elements

VIi th lt-...,.al character. <..) ' •

. ci) 'J.'ho iUplm,Jentation of thc Code ;:;ould depend on tho n?.tional· ::·

' e)

machinery of contractinG' parties,·· ;,t the international level

it shot>ld .,)O moni tered iw UiJl:.T;ill,

.i .. ccession. of contractifl{1· partit:.? to non-d.iscri'minat.ory-··principls . . .......... - ..

in tile transfer of technology,

·f) Tho partios to·the transfer of toohnoloe;y operations can, by

mutual consent Md within limits ·au·Ghoriscd by the nati~·nal

~--

:. i

al8Z.

CM/ 9 8/1 (XXXIII)

Page 63

legislation, chooso freely the la~.., applioc:~)lo to tl:·c opor~tion

concerninG the valicli ty ond c"ecution of ·tllll contr~ct, (' .

F:,nmm OF ifdJO'i'L>TI.OHS ,u:n ii.DOPTIOH OF l!ECISION TD/1.173

., ~~ ~ .. In vie~/ of dead look of tl'le nu(;'otiations, the Conference adopted

decision TD/1.173•

· a) It roco;;u;Kmded ·tl1at the SGcretary General: of Ull'C'l'..D and the

President of ~he Conference convene, preferably-at least one

month prior to ~hG resumed session of. the .Uni tGd Nations

Gon:fG~c·neo,-i:.:.Y.~eparatory wccting to prepl?~l"Gt in consultation

1,;ith the regional groups', for tho continuation of ·the o1ork of

the Uni·bed Nat:roris Conference ·by re~icwin&· .it.s. appropriate

or~anizo.tional uspocts ~Ji th a view to pro~:10ting efficiency in

the nocotiatinc process,

b) It furth~or invited thu President of tho Conference to revieu1

as a;Jpropriate' tloc r.lojor outstanding issues andj to the oxt0nt

poGsiblo 1 take steps 1 in consultation 1vi th ·tho rocional groups 1

to contribute to tho resolution of those issues, includinG the

possibili·liy ·or :cequcsti~li;' tho· Cha.ir1nan of the 1Vorlcin[)' Groups

to :.1alco' oontributi·'>11S on iho O:r.:.:;a.nizational and sul>stan·iiivo

issues~

C 0 N C 1 U S I 0 N

183. ~·Ji.th tho failure of negotiations He shu.cld adopt the reactions o·f

tho Group of 77 at tLo Conference) su: .. ra0d U!). c:.s folloNs:

"It is extre,:Jely difficult 1 . if not ii.lpossible 1 to neGotiate if one of the

parties tci the negotie.tions insists (1) thiot .only a partionlar topic,. the ·I·

leGal charaotor of the Code, should :,e co'nsidered (2) that its position

previously oxpressed in Geneva on t::at• prarticuiar topicj naro1ely 1 volu_nte.ry ' .

guidelines· ~ouplbd 1'1i th G.n institutional i~~O.Chinc..:rj, should !Jo considered

/

CM/984(XXXIII)

Page 61!

first (3) tha,t its position shoe1lcl bo accoptod by all tho -other parties (4)

·G!1at the position of tho other :?2 .. rtivs 01~ ;;o,sible compromises on the same

iopic shc.>'-~ld not ov;,n be discussed ctnd (5) finally, that no· other topic could

·even bo considered for discussion unless a11d until q.ll tho otho:r: parties had

accoptod their st,'.nd on tl.:-.at particular topicn,

:1Pin::.lly 1 tho declaration by this group that for lack of ti.-ae they

i·Jvuld be una"'.Jle to consider tho various ~t~tl;ml1ts at co:-npror:1ise proposals, even

t:.J.o SO E1rJ.dO

C0111"-Ii ttin,:o . ·~'' '~:::- '. .. ;.,.

~'Y tho

::.rzy of

Cha-irnan under his personal responsibility_ and >li thout

the parties lrJl~2.tsoovor, this int:.bi1i ty beL\~ s·~atod not more

than tNo full clays before -~he end of the Cun1·eronce 1 and at a time ·'"ben many

·athor negotiating (:!;roups Nero just bucklinc; do1rm to such task, leads to 3roup

of T/ to \•onder if any rcsul t other than fc:,ilurc was :;I.t all possible,

.. ·.·-..: ... ;-l..f;M .i11if;ht add ·th6.t No found the ot~1ur {;·rourJs, Group D and China;, Jilore flexible

in thoir 'Nilling·noss to neG·Jtiateu.

:::.

1 85. 11 T>:lo Jroup of 77 believes that no progress at all on the Code of

Conduct rvas maclc at UlrCT.Jl, . .:o clo 11ot consider tho continuation of tl1e

Conference on the Uoc1.e Of C;JndLlct as proc;ros~, as this iG basi.qal~ procodu-

1: .. a+~ .:o also bclibvc that tv ma~or _:factqr contrib~i.tin:~ t,..::.. • t>.is laclc of pro::;ress

~·1as -not -Gho inabili·Gy to r::.-n.ch an 2.i._~rooin8n-t, but .a ro.fp.Ba.l ·to even cli:scuss the

issues ..

Hl6. ll10r L.\Ck of any p~O~:;':i."'OSS Jw:;:·o in i<anila the w.l.rusha. programme a.s .\·

::updated :Jy tho Gonev8< negoti.s--.ti•)llS ill Harch ronmins as out frar11ework for

nucotiations in tho future" •

. '13,

1 87.

~~·~lUG r1U :Q_l!~OPYLllT. Qlil Pl>.IJ.T.8l.JT RIGI-I 1}.1;:3 :JIT.liilJ IJ:1IIT:

~.:omc_o~· ITS CUlll-ful;T llli'VIE\1 '

i.s it is kno1m 1 tl:io Paris convention to·· protect' patont rights

was actually undor rovio;, at th<'> ciorld IntGlleo,tual. Property Or,:;anizatL>n.

CM/984(XXXIII) Page 6.5

'l'he Arusha docu;.1unt insisted on that thv review should take into

consiclorat·ion. tho histor~cal and OC•JllOHlic dovelopilK.-nt as l'll'oll as tt .. e nG\'1 ·

internal loci slat ions ''ancl, practices of devolG>pinc countries,. . . .. : :·.·_) ..

'!'I

On tho. other hand it sh<.mlcl onsUl"'O a· fair balance between public_· interests

and the .~1ore r;enc:ca.l n-..;ods of develop,::~cnt on one hand and tho rights of paton

holders on tho other. ·

Tho am.in concern of developin!;' countrios l'-'as that this review

shc1uld fqrthor cffoctivc ox:)loi tat ion of invonti,.~ns in each c"ou.nt.r:y ~d :·

allow ;.lo:.,tcr states to ·oako appro1Jriate steps to forestall the abusive.:

.. practices in tho :~rca patent rit~·ht.s·.

,190. Tribute sho:1ld :·,o iH?.id to tho Conforonoc for c:.dopti~· wi thoL1t

CLitficul·tio's the rosolution fil/1~152 on atho contribution of UIJt?t.:;J) to

eco.nmJic ;:~nd t~t·::1do .te.ctor8 role._tin~· to ,dovcl?.p;ilOnt of ~)a-Gent ri~~·~-~ts lr.;i thip.

-~~10 fro..,:eh"Oi,k of its current roviow:; •

and propo::.;als of cloveloj)LV; countriOs:

..... ._ .....

'lc10 resolution hailed with satisi'action tLc clooision of tho -~lorld

Intullectual Propdty Orc;-anization to convenE: the diplomatic

Confor·:..nco on tho reyimv of.' th·t~ Paris C.onvcnti-Jn for the protection

of ~Jat(~nt ri.;htp in I:'ebruary - na:-rch 1980.

It emphasized the.t one of the principal objoctivo-s· of the; rcviow

of the Paris convontion should be to_o~courage the local inventive

and innov~:~,tivc abili tius c~nd thv oxploi t2:tion of inventions cspccia-. . . . lly in G.oVulopinti:. 9quntl:.Ios so 2.G to o..ccclerc-:.tc devolop~.K,nt,. ·- --. ...... -·-~--... .

... -;;.- .. . ·- ~ ...

It . rq9ormnondqd -j;ho considerations <:.nd t':;uic1elLcos to 'i!IPO vii th a

vio!.V' to coi11in~·-; up Ni-th, ·a model lq.w for trcvic i:lc .. rks or .~Jre..nds for.

davclopin[>' countries.

c

<·

CM/984(XXXIII) Page 66

It requc;st0d the Govor(lmont of all UIICT~.D liombur :Jtc:_tes attendine

tho diplo,aatic confcronco to t.9.k:c into. ·consideration the concorn

expressed byr dcvclopinc countries rolatinf; to public interest 8 .. .nd ··-;

the possibil~ tics they IH:d to adopt an appropriate lat;· and policy

in tho conna~t-ion as !"tipuldod .pc.rticular1y in the doclarc.tions

mode by in 197 5 :::nd 197.7 by mcports. of developing rao;;1ber countries

of Group of ·77,

The ll.osolution urc;od ·olw UNC'l'...D ;,ecrotary Genoral to continuo his

sturli.pS: of the E:conomic tru,el9 c . .spocts ·rclatinc; to development of

patent ric;·ht.s. a~1~ to report -t~.1crcon as soon as possible.

:JTJ~JG.Iri1E1D:l·-TG rf.Fili: TE'CFTIJOLOGIC.:l.L G.i....P~"'Cir!:_r_ __ O".B, :m£·1niLOP~Jii~T

COUN1'RIJ1§__IlJCLUJ)llJG ~~CCJ~:L:CRL. 1EtHG -1HiTI:IR ~1JflCI-llTOLOGIC.lL ·· ... ....:,_;_ (

191. 1.r.hc im})lomcnto..tion of rus.•lution 8.7 (iv) rol~,:tint;' to ·Che s·Gr0ncthen-,

ing of the tGchnolocical CD..iJaci ty of dGvoloping countrie:s of thu confor1.;.l1.CC

lod to tho osta:Jlish!110nt of nu.tional, subrc~ional, :L'l:gional ·tochnolo~;ical

dovolopnont,_.cGntres.

. ~ ~-

T!!.C regional ... fricD.n 'J:IoChno'lo~;·fcai' Conti'OG ·~Jas ostr~blis1lod ldi th fts ho:.:..d.-

quc:.rt.~,rs at :JLJ.,}:n.r ( ~cndgal}o ·. '•

192 ·" Thuso hai)PY. :i-ni ti2.tivoG should he s.upportuc1 by a comprehGnsivo

strato~y ap;)licd- t'C/:.JrinG ab.out t~10 tuchnolot;ical trv,nsfo.I'J,ie.tion of dGvclop-

iric; countries. On tl:..o othor hand, o.ccorrling· to ~osolution 87 .(iv) ·Gho duvolopod

countr:i.es ,had ~J.t;r,~ed to take sovor,;:,l stOi)B to co-opern.to ,ui -th dovoloping

CDuritrios "·~,r:lth ::1 vio·~·! to strcntsthoninG tho tochnolo-.:;ica.l caraci ty notably

1Jy gx·anting· speci::·.l troat!·;1~.;nt, the trainine:; of local :aan po~Jer, the

. 193. •',J

........ On this snbj?ct, Ul!CT.,:il V shoultl g:,t_',or i;;''ormation from member

statds on tha· c·c:.rr"\Jing out of t.b.oso oo;m11i t:·ih .. nts. 'l~1on tho conforcnco had

to consider tho practical or,·,.::::.nizO>Gional c .. spects of th.o implom ntation of " .

•

\ 1 '. CH/934(XXXIII) Page 67

actions acreed upon by the c1ovvlopod c·ountrios and to tho nJGthod of implerao-nta-

tion "'tihoy .follot\'cd closely.

194. It shoulcL 1Je pointud out that tho confoc'once had gathored li ttlo

inforiilation and vcro' little is lmoTm on tho ;;ay tho 'developed countries bad

dfs.che.rcod their· inotnational 'obliJations. · ., . . "'

Li ttlo is knmm on tho institutional structures they ostablishc,d or tho no1-1

:,]).OPTION Ol" ilJ~SOLUTIO!l ~'ll/1.172. OH S'i'liENG'nmiH!!G TTIJCHNOLOGICi•L

c;.r;,CITY OF IJ.r:f:iLOPiliG CO\JHTRILS IiiCLUlJilJG ;~CCTIJL:Gili.TIHG •rmJIR ' TTIJC!!NOLOGIC.~L. TR..iiSJ!'ORJ.l.'iTION

~-·, .. ' ', "_., ~ 0 """ - M •'":; 0 0 :0. '" ~

This rosolution droN_ :!)1e o:btm_ry~on to the necossi ty of· comprohvnsi vo

approach to tho quustion. of toclulolo(;'Y in clov0loping countries Hhich NOt.;-~4-

"COver the l~cnorati0n; assGsaont, identification,. sol8·c~ion, e..cqtiisi tion G.nd

T'!:.en it rccommcnQ(;cl actions Nhich tvv:tld form part of a· strat0~y Hi th a ~vi'G"w·

to~ ~cccleratinl:S tochnolo~-;·i.9al transforr!1o,tio·n of dnvn;lopin.s countrios. These

actions lvou.ld cover coi-:1prohonsi vc o.n¢1 ~.:;;tai lGd a.roas:

•

a) i .. ction to stro.nGthon ;tcchnolozice.l Capac._i ty of deVolopinr;··

.countries a.ncl thcro~JY to accolorc.--:.te their technolo2;ical

~ra..nsformo.tion ..

b)

(i)

(ii)

(iii)

(iv)

acti(.)it 'by dc:vulopiht;' countries fit nE~tional loVGl'

co-operation a::.!0.0[4' d.ovolopiri~: count~ius

co-opo!'2.tion ~rom dovu-loped countries

co-operation a1~10n8 ::;11 thu countl:-ies

Contribu-Gion ·:w UJifOT • .JJ to the stron,.,thconillJ' of technological v .~ .... ·-'

capuciiy of.dayolcpinz countrios includinc~ a~ccloratillb thuir

tochnolo,~jiCe~l 'lj!"a.ns.formo:Giof!, ,

'

. (i)

(ii)

(iif)

(iv)

CM/984(XXXIII) Page 68

:.~.c.tion in specific areas and soc tors of ·critical-

importance to developing countries

Stud:i,os. and reports"··'· : .. ·

Tocliriical ',U1d''operatib~~~ ··~ssistance from the -' ·t • •.•• • ..

~uivi'sot~ ·sc;vicc on. Trans±';r of ~·echnology .

.Formulation of a ·strategy for the t·C>clinological

transformatfon of ·clovclopip.z cout1t-ri'os'•. :: · · . . '·- -·-· ___ ... - . . ---• ·r .., .

. c) Unitod liatbnsiCOnfaronoc 'on .Sciol;lCG and 'Technology for

· Development, .' ' . d) Iinviroru:Iontal e.s;;octs of te<?lu1olo.;·y.

,i'',;

REH1~.11K: .: '

UNCT,:Jl V should sincerely he praised for the adoj)tion of this

,important rosolu ti!)n :Ihi'clr,·. if implm:~cntecl 1 110L\ld initiate an acc·oloratod

tochnplot;ioal transforii1ation of dovcl6pifl;; countries.

lloreovor this rosolut'ion took up intccr~lly tho ..... rusha. _Programme o _ _t;l this

topic, . / ,; .

D

Th:i,s l'Gle.tod to :J:ho probl_om commonly callc.d ·"Brain drain ll,Ild outflol-1

of .tra,ined pe:~;s.o.nncl",:

"·,s it shoLlld ~)0 a.dmi ttod ·that the pro1,lom of revorS(o) transfer of technology

is c:.. multif:acetucl one, encompassin~ social, econoiJic 'and development issLW1S

as >!Elll a~ P.olitical 1 civil' and hui;,an :aspbcts 1 it should equally ho· _rocogrii~ud tl1~t''the ccod~mic 'ancl ~ocial deveio~:.:.~~t· ol' 'd'm~eloping' countries deponded 1

' ; : ~' .' • ' J -· •

intor ali'a.'·,' ·on th6 c.vailabili ty o·r their o;m properly trainod,. skilled and .. ,.,;·, professional personnel, and on opportunities· for their employment in their

respective. fiolds of compotE.Jnco.

1 98.

.:·.) CM/984(XXXIII) P~ge 69

, lvi thout coing i.nto unnocessary details 1 it sho"'ld 1Jo reckoned that

UNC'LJl V hCld frMk o.ml constructive chscussions in this field and edoptod 1 at

tho ond of its procoedin[(sj Resolution TD/1.155 on tho devclopr.Jcnt aspects of

tho reverse transfer of tochnolo(Oy,

200,

' ' JlESOLUl'ION ,~El/L.l5'i ON DltVJ£LOPi:ill'!'1' .,SPEC'rS Ol~ RJ:!VERsg

T&~NSFJ21 OF l'ECHNGLOGY

In short -tho developed countriGs should:

·.a) Bupl.Jort· measures designocl to encourage the absorbtion of trained

. personnel, ·11:dthin dov?lopj ng·. countries and support their ccti vi tics

of inte:rnatione~l- orcanize,tions aimGd _at fin<linc solutions to thi.s

pro:1lem1 Ni thout prGjudice to exist in;:; international agree,nents,

b) encourage ros8arch ancl training acti vi tivs in developing '?ouhl;.ies

institutions. ~t.nd oncl)Urat;c .;roater use of developing cOuntries

~killed .personnel ill ~rogrammcs or ·projects.

c) Those of these countries Nhiah ad:ni 'dod skilled migrant should

co.nsicle:r r:loasu_ros rcle..tod to sociel socuri ty; pension ri.;htsf

currency cc•ntrol, tax policies and 1 rami ttanccs 1~1i th a. viovJ ·to

6.nC::'ura:;~nG co~tributions t:J tho economic dGvelopi~te:nt of· develop­

ing countries, rocot~·nising --that tho muasuros invol_vvd wcire 'than

t,hc )jroblc;ns of development and tho reverse- transfer of tochnolo:-w

o'-'1sl, o~ally rococnisine· oxistil1[\ nati-onal compotencos in this "·· -'.'>-

Thu devolopinc countries shoulcl:

a) moni·tor tho Cli.anGing characteristics of ~~he probloril of skillc.d

outfloHs ru1cl take u.pproprie.te roraodial to mi tigato th0 e~dversO

. CIJnscquoncos "associa:tod wi-th the phonomc.:non.

b) talco stops to indigonizc Md adapt thGir education

system r.wrc closely to thoir developmGnt n·:..0ds.

• e •.;j_

a.nd. i~~i~inrr o,

c) endeavour to oroo..to socie.l, ooonOE1ic a."ld othor conditions d.csignecl

to provic.e increased opportrinios for satisf;yinc omploymont 'for

thoir skilled u.nd profcs3ional lJorsonnol.

•

201 •

..

; ..

'.

Tho international cor:·L:1uni ty shoL::ld: .•

CM/9134(XXXIII)

Page 70

a) consider Oxarnininc possible arrMc;cr.!onts l.\'hcr_ebY developing

countries experiencing iarges-scale outflo~IS of their skilled

prolcssio[,la.ls !'l1lich qB.(ts'e ocono!llic disruptions, could secure

e,ssiste..nce in dcaling··"'•~i th 3.Cljustnont problems arising therefrom. ...... ~

b) co--ordinate end c~evelop a practical application for tho t<ork

unclerta.lcon on this subject by the orGanizations of· United Nations

s~rStem.

c) ·.:;ivc special consideration to tho !)rOi)lc;;;s in this field faced

by the least developed a1:10n:; ·developinG countries.

QQRQ!.USION: Declire.tions citcr adoption of· the. rcsolu tion

The group of socialist couniiri .. os of l:astorn Europe C..oclared that it

accoptud tho resolution be; cause .tho Internation<il COl;tmuni ty reckoned the princi­

pliil' of co:npensation for dovolopin.z cotlntries 11hich suffered the exodus of skilled .. pr.ofess.ionals :)y thE:: cow1trics rocicvincr those ciai._:;ra.nts.

203. The Group of 77 statGd tht>t tho adoption o:f tho resolution by consesus

r.1<::..rkml an ~mporJ~ant turninG ·!in thG field of reverse trans:fur of technology.

This consensus moant tho rccogni tion !Jy the intornutional community of the

itlportanco of tho issues o.t stake ~d the.: nood f'or e. comprohonsivc approach.

204. Further, the Group of 77 11as happy to note tbc.t llil effort !'las made

in tho resolution to enumerate in clotail tho moasuros that dovclopGd countries

developin..:;- oc.untrios :.:.nd the i11torna.tional community should take to solve tho

probl(US and it hoped that in future the ";ork of ill-!C'l.' . .D >~auld be concentrated

on the oluborat',.on of measures that should be t akcn and the examination of

their feasibility.

205, Gr.oup B made some reservations in its statcmont

a) !Ll tho li~;ht of th0 multiple nature of the issue, it continued to

aou.,t if lHfC'l:;J) coLllcl play a l\.:acling role aiaong the United Nations

Or,;-;anization for an in-depth stuU.y of -~h<? issue.

206.

CM/984(XXXIII) Page 71

b) 'Iho measurc::s rclatod to :the social sccuri ty, pension ri:::;-ht,

cu.rr<.:ncy control, tax policies 2.nd remi ttanccs \·IGrc issues

lvhich 0manatod :from the c:~mp~tence o'! cou~trios e.nd that the

a';lequa.cy, fcasibili ty and usc of those muasurcs 1-1ould '..)e

cnvisa.;_~od from thG point of viet<T of the states L::::;-ish..tion and

their internal social enu :economic' polici~s~

c) . The ado:)tion of tho .resolution by consensus should be interpre­

ted as ~o m;..an "'.;hat Group ··13 ht:!.Cl chant.~ its · pos'i tion concerning

cvmpensa_t{on fo~· the exodus of ski"Lled personnel. It did not

think th::1t this ighly compl~catcd ·phcnomenqn vihosc dimension

had not yet 'boon ::-.ssessccl could ~)e offset by compon~at;;.on~

d) Gl~dup n._r .C:a:ff'irmcd its {SoLleral i'0sGrve,tions on tho' .. iSS!-10 conc<:;rn­

in6 the :fina.ncic.l implications involved in the direc-t; cost of

t!m-.,cysolution.

., ~:~s ao.n easily be seen, ·i;he-.x:9ac·tion of dovolopccl ,,,f~rk~t economy -- . ' ... . . .. .. . . . countries C."·u),d cn.si:ly :)~:c asf:i8sscd by the re·sol~J.1~on '.l'DjL.l55 'Nl~ich · is devoid

of sub~ta.ncc, content .. e.n.d . hce.i-in::;.

ITT~i! 19= SHIPJ'WG

-CM/ 93L!(XXXIII)

Page 7'-'.

A. DEVL!LOPI;[:.l.JTS CO:'.TC~iliJIIJG TH~ CO~:Vf:~TTIOlT OU

207.

,, + ... ..~. LINBH CO!WER.:lNCTIJ CODE 0Ii1 CCJ:JIJUCT

By the time U:ICTAD V ·ncc;otiations star:bod in !hnilla, ·tho Lin.:,:.

:c;onfercmce Cotle of Conduct c.C:optcd -at a Diplomatic Conference· in Goaw~

in !;?rch, 197(, liad. not entered into force beca1.13e the required 25 ~er (:~nt

shipl;inc tonnage lw.c~··i1ot been obto.in;·.::de

208. To evince their )eli tic2.1 determination, 34 clevo10l)i!J;j countries

inc1u,1_inc 20 fi·om Africa, 7 from f,sia o.ncl 7 from Latin ;unerica1 h2.d a1reac'!J·

sir.,nod the Code.

209. ..:~t th.J Com..1cncemont of ~1or~, the developed. countri0s ~;ith bulk tonnt::.[;e

undertook to ratify or b<::como parties to tho Liner Ccn1ferencc Code of

Con<.:uc.Jii. ;rhe ro..tification ins.tru.:nGnt of .}-1omber a.~atos o.f_. Jill.ro~can

Communi ties uere, ho~·~ever, accol:1;)anied Uy three, resGrva-tions and one . -~. ·: ... ~ ·. · .. :. ·, . . interprets.ti6n.

210. In [~ny ~-a.se it 1·rns decided that the Cocle ~;OiliCL- be. si(:.·ncd, ro.tified

anr: adopted in the ·nee.r future, The l•lanilla ·nccotiations ;·mro therefore

limi t.::t":. to the .. uays anU r.i8ans of iiilplemEn~t~n.::.~ this important r,e~oluticn.

- ,_

llli30LUTIOU 'l'DK _ 163 .OE :Jf)V:.JLO''l:l.:£JTS

COi.iC~l:U!HIG 'TIL COHVEE'l'IOii O!l 'l'Iill

LlllER CONFERGHCE CODE Ol!' cmJDU!iT

211 • _'l,t the~ e1~d. of the na.":-rotin.ti:olls on ship:)ine, ·ti~G cPn.t:@r§.~o.~·.-·acl.opted

.Uesolutl:on ·rnrc. 163 uhich included tho follciuinc decisions:·· · ~e rGsolution:

CM/ 9 34 ( JC..XXIII )

Page 73

a) Calls upon Governments · of States !:\embers of ffi'TC'I'.d:C \·ihich arc

cmitrao-til'lG I>a~ti~s -to -the Convention -to -take all .. neca~s-.:iry'm~tfres

tor-;a.rds th~ early iml)l-emoB.=tation of -tha . Convention.t

b) Invi tcs Governments of States menbcrs of tnJC'I'I.D ~-rhich are not yet

ccntractinc. parti~s to the Convel<tion to consi/!.er "\;lecor.tiiiC contractinG"

pa.rtif;S, ami i:n c.~cinc, so to c.ive- full . ~onsicle~a.tion to the in·cerGsts . . .

of c.levelopii"l,0

' cotmtries in the Cot1.e.

c) Urr-:es devclopin::; countries to ensure the osta.blishraent or strengtb.min(i

9~ shipJ.)ers' ?_r.c;omiza.tions or rcj_)rescmtatives of shi~>,Jcrs a:t re.::_:im~al

;J.i1~ nat icn~l ~cyc.:J:g; :>·Iith 'D. vi em tO' -011Suril1[.: a balance OI- interests

bet::icen su;?.-licrs ·;_1nc.l users of linei- confer6nce ·service~. . .~ · ..

d.) Urr:cs the GovvrruJents of' contract inc :_)ar'bies to facili ta.tc the

in th,o Code, especially in relation to Ge:1eral froi.::;ht rate increases . . . .,

~) Re£t1.1ests thJ 3ecrcte.ry-Gcn.::r<!l c;i:' ij;:m•r,_jj to ci ve ,:_,--uidance .:.:.1~ assis-ta.nc.:!,

on rcqu()st, to the•Gov:.:rnmcnts of .:':.cvclopi::y-- .c:m1r~rios i;.1. :)uttinc: th0·

· Coc' .. ~ ihto e:ffe"t!t ." Th_e .. {~pluti;;·.~;"q~q~~~ .t'~l~- lliiCT: ... :;J Scc;o·t~ry-G;:meral to up-elate: its l:,f~vi5iis :si~cl_ic~-- ;-;~~~he~~~~;;t~,0tiu. structti.rc of conference

--~~T~~ . · . .:r .- • -- - -:,~--:· • .:-· . - - • . :- • • . ••

tariffs 'bc:l.:l.rinL ·ur f.1im':. in ·v:l.rticular tho int...:rest::: c_;f" d.evelopin,2

c oUlltri:..;s . It furt~:ar r.;qu.:;sts hin t c re:;>ort pcrioclically o~ th~

:•ro{.;r c:;:s in ... tho im~lcr:~..:3nta.iion of th.::l .. Cocle .• · ·":"

212. It is obvious, thc;l; ~n im::_)ortc.nt stric'!.e ;;,1,S r.w .. l:.e· -by the_ aC..o;.,>tion of the

Lin~r Conferenc.c , Code of Conu~ct· 1)y a lar::~e _nur.f'.)0r of co}+ll~l'i~s as well a s its

::,ntry into :force.

CM/984(XXXIII) Page 74

213. :~:Gvon thouch, the rn:!;ifica.tion o.nr.:. w,c:option of th.J Coclo consti tutcs an

i::~~ort21~t (l.eyelo~_~i-:~e:nt, ·i:;his is not sufficie~r~ '!.)C::,'?~~Jy.se tho Code only ~unrant~cs

tl:e ri.)~~s of. cievpl::~p~~~: c·::u.atri: .. s re::_.at-di.n.c .row-u.l3r liner traffic, 1:rhcre3.s the

lo.tter ro·.)res:..:nta only one fifth oJ~ ·;GotJ.l_.~;:.~.~i:::J_in:; tonri?J.cc.

214· t tJf,JfYr.~·t1:> 1 G st.~tistics' cl_OE!:rly sb,,yy t.li~ shortcorJinc.c of :tm.st measures

.. •' ·~. . ·. tho sl'!.L:.ro cf the fleets· in ~}Or lc"'.. ·::.lead·~;~c-,tt;ti.t .\·~hich stood at· cant

;;;·':+l) .· of ·t;llo DccaC.e ~ovas onl~,r :olichtly increasccl to 8,6 ;JGr ccnj; by

·'-'·

,i:-~icl - 1978." Bar. i:~ost of ·blw devclo~JinG countries ( mcco:)t 13) these results

.;·wro ci thor non-cxistc:J.t or rather poor. ConsbquontlY, the clevclo~Jin:_~ cow:itriCs

centre:_~ their clc:m:u.lds on: ' '

· c) the :J.:..rtici~)stion of. G..cv.::lcpi:1;~: ycnn·Cries in i:!Or lC!. ·ship)in;:; enc'~

c"levolop:-.1c.mt of .tlwir n~rc1.l2!.11t r:12.~inGs and,

b) s::.ip fh~c .. ncinc .::.atl t.::chnica.l assis·t.:mcc o

r:··

a.) r.rlw I''ro blcm 2.8 it s t:.:!.n.tls

.. ".\

·····~ .... -Ui.iCT.::.:.~ ··]~~:~~-~~:~·:~ ! .. ·t~~~ t·.\o tuajor obstacL.:s in

70(iii) of ·the CmYi: .... (.."TOnoo o..nd tho ostublish1:10nt

of' th~ iTcH Intcrna.tioaal .. ·:ovnott!.ic Orclcr !·r6r0:

i) ti1c right to :x!.rtici:x.t-to in .t!:t.u

ol' th.: shi;) )il15 to .. .u.lc:.;_;c and

ii) rcjJ.l(.;1.r cx::c.nsion cf' floats unC'.cr ope::1-rG:;istric:s, :·:hich lmd a.clv.;rao

ofi'octs on tho ,:~vv:Jlop41·~nt of t1~u nation~l flcv:bu of dovclo:)illG countricz.

CH/984(XXXIII)

Page 75

.i'..t :.:1r~scnt tho clovclo~)oc-... ill[:.rkot cconony co1.urt;rics havu ovor 85 pci- cent of t~J.o

~crorld 1 s fl.;cts t·~hich incluclc vessels :flyinc th.;ir o::n flaGS or o·J,J~r~r~i:ac. tu.1.cl.Cr

the fl<J...:; of countries ui tll o~)cn-rccistriJs.

216 •. Conse([:l~ntly, th;.;: CpDfer-:.1ncc \·las askccl to adopt the necessary measures to sllaro

the: "b1.llk car_ o carried by vassals plying rcsnlu.rly bl3t~;ccn t·.;c joint hulk

shi~Jpinc cou11trics.

lJovortl·:oldss 1 a larc;c · ~or·tion cf ~;orlCt ~Julk ce..rccos. is i:K:.L...: U~J of irrc::.,ular

c··nsicl-u·.;en·Gs :-iL.ich shoulc~ nocessu.rily be c2..rri.::tl '!)y vassals tr.:~clin~. ,:;onorally

.. -··

218. fc.ai-n:. · c'u-t of O~)cn registry o~~cra-:, .. : ...

. ... --· i:; ioi1S ov;:1r :ilu.~1y y0U-rs .. ~to_uirl.···rOsEl t. j.n <:.'\ r0[/ll~"i.r tr.;:.r~s for •Jr'"' tl:osu o~J.:r~J.ti··.J:iG" ... tc

..• ~-una.voifu:ble because the ship owners of the traditional ship:;;>:i.nr;- oount;ios coulee

not operate economically with their own flags o~rinc to the high costs invol V()d

in S)lch bj;leratipns •

.....

Il: su~:·:·•ort (;f this nr;-_,~w:wnt, th0 Grou_iJ o:f 77 prc)oso.:·: to tho GoiifGrGnce

ti..Jr:· c:re:.ft r.:.;sclutiuns:

{A) ~:mJ .. ] 1I' 1.f.._.,][.:J.,lJ'I'T:.'IJ Q~; Pill'tl1IGI _ '},:.L1IOiT CF

:,J::JV..lLC?Il•fd COU.L!'rRI ::::·3 II-i' · :OHLD

220. Tho clevu_lopiric cou.ntri· ... s Here s..:riousl,y concerned ~-~1K.ut thc:ir lm·i

<

lJo.:rtici~.}o..tion in the tro.l1Sl)Ort o:f 'bull~ o.n<.·~ rofri. or2.tcC c.~r.~;·o &.l'l<."':. fur•bb.or took

note c·f t!K: Lcsiro ol ;;-,.:'..:1,:)~ cc·\:u1trics to ~:;I:c:se out OJ.:Jor..-rc._)istrios o

\ , ..

CM/984(XXXIII) Page 76

221 'l1hoy therefore cttllcd. on Govornn.::nts to -t::.tko ti.t:J nccosso..ry_:·.wasuros to

o:.:wuro the:~ d0volo:;;'Jincrcountrics. ~'J.:.-..rtic~:x.:.tecl cqcli tably in tho c~\.rriac;o of ell

carc):ocs, ospccially bulk c:~rc;oo.s. c;onur2.tod ~)Y their m·in oXtorao.l tr2.llo, 2.nd by

tho nr:.tic·n:~l Vessels of each trc:.riO :Jnrtrwr 7. or :~y other vessels opc:ra.tocl 1Jy

thomo

22.~·. Tho dovvlopin: .... cm.mtrics· thus rocorJin0~1clec.l ·t;hc im:)lcr.wntatioa of. tho follcuinc;

pri::J.ci~::lcs: . ' ,~

c~) ·rho trn:lsport of; rGc,ulo..r bulk c:tn<l rofri:~oratod cu.rco hett;won :Jc.ir cf

OX)~Dr·bin:~ c~n( importin: countrios Should h::,.vc equitnblc lJL~rtici:)c:.tir:n :Jy tho

.a<~tio1i::-:.l ·lines o:f tllo rds,:;octivo ~r.t;~linc co1.u1trics, or by vessels othorvdsc o:Jorq.tcd

by then~;:~:._, . ····-···

~J) Th0 other :Julk aw.l rBfric;uratocl cgr~.~oos should be thO subj·;;ct of

bile;!::cn'i.o.l C.[_;reoraonts ,botvJoen the trc~(';.inc p.:::.rtnor countries proviclinL for. tho

cqnitc):)lG pn.rt-iCilx·.tion·· in thu traclos ·~JY tho n~::Ci·2!.10.l lilloa of those ·tr.:.dinc

223.

PuSsibili·tios. of ox~anc"'..inc ~Jull~ 9.arriar~o shoots of G.GvClopin: countries on specific

bulk trC.clC l"OUt1)S ~ .'~",llll to JX8.t:lil10 the' i:lC~l11:10i' ,)in :,rl:a.ich; tho cnrco is CUI'rontly tied

.. to tr;."'..Lint.:, :;,:12-rtne:r countrios or to tr.?.n.Si:'l<:.:.tiOn.::.l cor)oro.tions .. :'

)-•,.

G'GU(~r th0 controls exorcisoc: 1Jy t.r~~nsna·Gicaa.l oorpqrt.!.tivns over iJulk

.. f:?vo.~·aGnts of varicus 'tx: .. oio cOmiJCG.i tios ..

C:.ctori~lin0 tho f:lovoncnt of bulk c<:.i.r;;ocs a.i110llJ dcvolO.i.Jin.~. Countri::s :·;hibh

coulc:. s.: .. rvc e.s 'basis for the ostc.Jlisl:Dont of coamon c'x:~ort <.:nc~., i:.1pvrt ; , ...

r~

...:. coaveno 'a mcetinr; of tliO. t:•-Ovc~nra.cl~~. roprGscnta.tiv3.~ c.or~c(;").rrr.3d ~ l·i"i th c, vim·:

t~; t..:~kinc; tho n.::cossn.ry raoasuros for tL.o r:wv6raont of all 1)ulk c::rcocs e..;,wn,:;­

(l13v2lo:)in,· .. Countri .s to Oc carrioC.. out as c1ucll ·as possible by vessels ot-:naC..

by national lines of on.ch tradinL, py.rtnor or by vcssbls othort<Jiso o~JorD..tccl

by tlH:)mo

CM/984(XXXIII) Page 77

cut of o:Je.n-ro::.istrius, its .:.;co:EL1iC and G'ocial :i.til :·o..ct 011 tho ocono;;·;ics of

c,_evolo)inc: ccuntri'J8, its offocts on rrorlc:. shi~)pinc, uncl hou this ~)hasinc­

o~lt:. of o~;on-ro~~:istrics l··rould ensure simul tanoous dovelc::;mon~ cf ..:tho i:

·::~orchc..nt fleets of dovclo~Jin. countries 1 :·ri th ~t vic<•J to tn.kinc 'a decisiOn

on th.:; C.csirLtbili ty of' lJh2.sinc..:..ou-t o

study ·Gho foo.sil1ility of osta:J.lisl~iar.; c. lo;;al mochunism for reculatint_; the

OI~Grations of opqn-rcr::istry fl,_;ets clurilv_ th8 corres~JonC:ing ~1erioda

(B) ;u.t1\FT <C::iCLU'I'IC;; O!T 'JHIP .F'IliL!ICIIJG

• LED '11 .. JCHHIC .. LL J:lSSii3TI:JfCE

224. In view of the urce~t· vconomic ~)roblor:1S Gf dcvelopini__: C0l111trics rn,acl t~~<..:ir

lil~1i toe:. rvGOUl"'CCS t tl:..8 Gov8rniaonts (Jf m·IC'.£1LD. T,l[oi"llbOr Sta.tos 1•Jere cal leG Uj,1011 to

ii)

.',>rioe.

iii) of intorost +· ..... r BUCl ,... ... ~) n \..o.Ororrod :x:..y,iiont shoulC~ not

1 '

OXCOGd. 5

.in.st_i tutiens t.-·r:-;;c.-· . . - '-' roqut::sto-d io r.ff' . v ... cr 111 nCI ccrclc"'..r1co

frLcili tics t...., _ .. :_ .. ' '· u .. J.•..; ·c·v,.:

1

r. :ru\;-.cnt<..-:1 iaoti tutions of {~GV.:::lo~·:-.; 11.

·~- countries :.:;r2.ntsc~ the:,1;1 for , ~ ·

)urc.r.l~tsi.n. . .- sl:ips •

•

\'•

?'>.C ' .. r., ·' •

• CM/984(XXXIII)

Page 78

to assist c:cvuloJ.)in.:_; couhtrios in cs.rryinc; out foasibili ty studios l?i·Gh a vicN

"to purche.sin._. ships o

l.)ovclopocl- cotmtrie;b i"Jorc roq_ucstotl to offer tochnic<..~l r.1n.rinc a.ssistanco

to tho dov0lo ~~i-:1...:".' cotu.J,trios ·concornucl espcciEl.lly in ·the follm·:in(·;· ~::.reo.~:

228.

Jils t:..~bliolliilollt of shi ·y)ilv' c.on:lniStrettion an(T fleet clcvolo·1x.1cnt ' .i:"o. ,,.,

trc:.inin::: of .'~,JersonhGl in .. shfp li.1.:::.into:n~~nco :::inc: i::.::l'ia.[;e,i:lc.:nt ' .

s::;conomic :;~,;n:rl conii1Ci-ci8.l as poets of mul ti-r.wdal · tr'-L~1G.)ort

" Vo

In its

tr .. :c:e n.n(~ sb.i-J:ia{:;' shsul<i ~Jo :Jor:i.1C in -m~:ado_·. TI1o roqu:Jst for tonnage depends on

tho C."-JJili ty of shi,;~ .. :crs t~) sustaii1 cor.1p0ti tion on the intcr!l.J.tiona.l r.1arkcts U.n:l.:.

<.."Lny cb:.:.n;~8 '-!.i;·:1oc: c.t incrc- .s~n::· shi[Y(~in,, costs .may joo:1e:.rc~iso this com;_1otitivbnqss"

229. ... . ' .~ . ' '.' :i_)rOSoi1t bulk carrlO.i_:··S -=·pc. ttorn

Khich i's .. inherent in the: froo t1::::.i'kot systo::: is J

further obsorvod thc/c th~ ~ulk carric..go of t~1:.., intcrn2.tion<:~l r.1a11lcots clocs net

~1?,s_e· 2..11.Y obstaolo to c~l1Y_~potol1'~i<:~l p[!.rtici-i~x-:,nt ~:'.-ill:. th:·:t it nl~ clepo~1c:s on tho

;:~tili ty o'f :tho s1:.i:;,Jo1rncr~ to i:tuot thd L~o::1<::~nd of ::-roduc...:.rs aac: con::n:t10rs o:.;ho -..:~;,nt

to onsure tl·L~t ,_1n oconoraical c.ncl offc!ctiv·:; mc:.-:,ns of tran.:-;p'Ort axists .•

230. Tl1c Grou:-r• al.so l.Jol:ivvocl th<:::.t . Glii~)~Jinc. ·of cor.1ii10(~i ti::.:s. shoulc: not, bo tiecl

Gxclu3ively t'J Ll.l1Y :x1rtnJr c·:5untrji or vossGl"

231. I:.1 Silln, G-!"'OUP B U~~s fully prop"''.rod tu consitlor z..ny l:Ic2.ns 1;hioh iJ·)'l.'!.l("..

.LncrG;:1so the lX~rtici~.::~~tion of tho floats of c1cv.:;lo:Jil1L cC'untri;..;s in ~:orlc: tr.::-i~c

~rovic!ed thosG flvets coo:.Jly 'i·':i th ·tho :~rinci .. "'lss of tro.c~o com>oti ti·on w.1G. the

:'rusont moto c.f vwrlcl sld).)illC ~

• CM/984(XXXIII)

Page 79

"". <' . R&t~C·J:II01'~-.J O:.? JJ:·~i.r:_;LQP.:J.:D T'Jh.'l1TLE:7J ECC'HOI:IY COUHTRI,:J.'3

~ 32 o • -The. --~st :Europo<..'..i.1 .~_iooic.;.liSt. cotu1trios shn.rccl the-' concern· u:t the ra:1iC,

incrO~',SC in th.J sll,:\.re of ,fldots_ 'of o.pon-~8 ::is try co"L:mtri_c;s in -worlcl mcroh2.nt

tonnU[;G n~ \'lell a.s th:.j uncontrolccl ;:~ctivi tics of trc.nsnativnal corporations in ! : • ' ~

ti1o fiolc: of shippinc. ,.

233. On th1:3 fa sine _out Of op0n-roL~istries, tho Soq_iD.list com1tric.s-. pro:Josocl

that a univorsn.l mul ti~::-~tcr~:.l G.1:;r0cniGnt bo f'oriilul:·,tOtl ancr ut~o;,:>tocl to_

systq:nc.tise thd o~i1:i.~ria for econo1~1ic linl5: bct\1oen vessels 8-nd fl2£ Stntos '. -·-··· "'

. p,.nq_ ospob"it:.lly clefino tl10 · Contri.J.)ution of ro~J;::;tGrec~. _Tl9ots to th(j ._economy Of .. .. -' •'0,•r. ., ••

f,l'~-~ stiitcs.

COlfCLU:3IOF3: J?AILU.i:L~::i Ili ·I'P.w=J U :.!GQ·_rL:\.i_liO!JS ~~~~=----~~

.;~rm VCTIHGS

2~1~. .. .. . l:.J.JY c...'.rco'~:10nt or cor,1~)romis8 · ~x!"Ij1•ICG11 c:evU"lo~)in[· cim.:mtrios <:.:..nU. d.ovolo:Jcd'

m:-~rkot oco~1c.;·a;Y countrios on :xyth (~rD.ft rc~olu:tit+hs S·ttt.iJj_ ftucl by ti.:o Grou:) of 77

1:r-:;:s pr.a.otio?lly irJI)OSsi:)lOo Cc:1130q}lontl.·,- tb.1 cl'OVl.l:>~K:c~ cc/u.n·Grios prosontoc'!..· :the

t;,;o T.ir<?..ft l1Csoll.lti'Jns to ·CJ.10 Ccaf..:;rcn:..cu C\:lll~ ,intJistc~ Ol} o. vote ~hercor1.

2.35. l~ voto :!:ly roll c.:~ll ·i--i2-S con(luotoc.~ rv?u,l t inc irt-tho o.Lo:a.Jt ion of tllo J)raf,"t

Resolution on "tl:o IJcvelo)::Jont of il·JrcLant Hurincs cf ~cvolopinc Countrio::>a

by 81 vot~,;s ·1 23 !l)::;d::-.st c.J.n(l 1q ·:~1J.stont i,·~ns o

?. ~~ 0

' .):!Jst-:t.incc"!_ in tb:u c<::.sc of tho occoml :Jr<:l.fii.

I

CM/9 84 (XXXIII.)

Page 80

238. .. In t.:~c f<J,ce of tho ne: __ ~-..:~ i vc st::::.ni.l of the t'.cvclopccl countrios '· tho on~y

}Josi ti::v.:: ;r-esult o:f th<:) <:Oc'.OI)tion of these t\'10 I .. 'raft Hcsolut'ioi'1s th-.;rbfore Na.s - ·; .-: e. nu;n"!Jcr · o:f stuC:ies . ~nc:·" c.ctivi tics c_a~ri0C: ~mt ~tli thin tho Ccnfcrcncc to- L;Gar

t~:8 duv.3lop~n·: co~intrilis tmmrcls p<:i.P.tici;_--;a~i-nc in i-rorlcl shipi)illC c.n:c1: the

·G.evolo1'1i1<nit of thoir cvn1 J:1orcl1ant mc:.rincs.

cont'd •••••••

ITEM 15:

2)9 •.

CM/ 9 84 (XXXIII)

Page 81

Comprehensive ile~r Programme .of l>ction for .tho Lo2.st. Devcloued

countries - Resolution TD~',l75

E.'ver since tho least developed countries ;rere iclentified 11s requiring

special attention, a series of resolutions >vere adopted by the General itss'embly

an<). other Uni te!'l Nations Bod.ies as .vell as the Specialized Acencios call'inr; for • ,I l' ' ' . . . ; ,, . ~' " l I ' '

special meo.sures in f~vour of the least developed countries (LDCs)' This VJc\S.

done us part of the framewor)c. of the International Development Strate,;y ancl the

Programme of Adtion on tre establish!p~nt of the ,He.v Intern<'-tio!k1.l Economic .Order.

Both at UNC~Lm III o.nd UNCTAD IV Resolutions 62(III) an:l 98(iv) respectively

\'lerc adopted focussinr:; attentio11 on the immense problems confront~d by~ the LDCs~

Procress in the itilplemontevtion of the speci~l mccsures spel·'G out in these . . resolutions has not been visa.ble 1 in mc.ny cases lackir•G cmd sometimes miserably

Evidence of EconofJic Decline lJefore UNCTAD V

240, In ·Ghc 1960s 1 the LDCs (20 from Africa; 10 from Asia and 1 from Latin

llmeric2.) experienced 2. c:ro>rth rate of o. re2.l cap'i ta GDP at 0.9% per O.lli1UJn, ' .

J3d.veen 1970 :cnd 1977 1 the ,:;ro . .vth· r2;t'e .. lov1cr<S~,•to 0.6% vrhilEl 11 of the 31 LDCs

expcri-0-ncod ·2.n ~ctua~ decline in ·the Su.me :9orioc1. OthGr deyeloping couj_itries

a.chieved a r;rorrth rate of 2•.Tfo e..lthoueh they clid not a.ttc.in the Gro~·Jth ro..te of

3o5% per co.pit2. called for by the In·GorxiC>.tional Development Str:;te[:y for the

Second _Dni ted Nc.tions Development Dec2.de, The Gap is wicleninc in relation to

other developinr; countries and to the developed coui1tries.

As a. croup, tho LDOs recorded 2. decline in O.Griculttrral 9roduction 1

manuf:1cturinD cut put (only a very fmJ of the LDCs hc.ve manuf2.cturin,:; industries);

cross dome$tic investment, export purohr~sinc· power nnd import volUme. The

evidence ttbove indicates thc.t the, actual pcrform2.i1ce of the LDCs in the 1970s

.vas .veaker than in the 1960s.

242. There 1vc:.s some improvement 1 in tho 1970s 1 in the volume of conccssional

financi2.l flo.vs to the LDGs but this hc.d no sicni.ficanoe duo to the declinint;·

purchasinG po.ver <;f their expol'ts. 'rhis c.ffccted their import capacity which . .

remo.inc.d a·G a very lo><. level indeed. Fourteen of the 31 LDCs 1Ji th three quarters

of the popula·tion :recorded n.ct1.111i decli~o in expor.i yolumc per cD.pi tn. duri.nr..;

the 1970s t<hile 10 >rith 59~ of the populc.tion expericnood :>bsolute declines.

CM/984(XXXIII) Page Di .... ' ,.•

r ~.: On1y .. six LDGs in Africa recorded o;ains in export volume in excess of 7% per

annum as callecl.for in the InternationLcl Devo1cpment Strategy for the Second

Development· Decade, !<lost of tho LDCs depend on foreic,n aid •. At least 20 of

them· received foreiGn .e.id \vhich exceeded their 8 xport ee.rnines; . Between 1972

and 1975 1 reel per repi ta · conco.ssionc.l assist2.nce f1o.vs to .. :the LDCs . countries

grew.by 76%. This ·is partly e.ttribu-Ged to the merc;ency assistance to countries

affected by bale.nce-of-pe.yment proble,;Js ancl the drought in the Sahalian recion.

This h:!.s since declined by 19/o betl'leen 197-5 an~ -~976. The LDCs had an estimated

debt o.roun.d. of $10 billion r:t the beGiruii·n;:; of_i.97-7 1 being serviced by e,s much

as $600 million or 15)6 of· their export · earninss per .y.e<J.r, Despite the

~linisterial resolution 165(5-IX) adopted at the Special Session of Trade and.

Development Board of I;iarch '1978 1 _l~hich_ca;I.led for _c~ncellation of deb,ts ·and

to p'rovide softer J!le&sure's on debt relief. Only a few countries have responded

·to this resolut'ion vlhilo the most developed among t_he deve) .. gped countries suoh ........ _ ...

as the. U;1i\ed States, West Uc:t<miny 1 Jc.pan etc. remc.ined unconcerned about the

plicht of the LDCs.;

The Decisions of the Einis·cerial Conference of the Group. of

17 . at' ilrusha

243. : ... . Fc.ced with the over>•helmins evidence of the ec~nomic plir;ht of .the-

LDCs,,•·"Ghe l!iinisterial conference of the Group of 77 Has determined tcf. adopt

a nal< ProGramme of J,ction -for the 1980s· desit;ned to tr;o.nsfor;;; the economies of

the ,LDCs. Tlw first phase of the programme covered eEJero;cncy effort for the

immediatc·future in the form of a.Crash Programme for 1979-1981 aimed at an

immeclia·be boast .o.f ·the economies. of the LDCs, The second phase covered e.

substantie.l Nevr Pro,::ramme of Action for th.e 1980s. intended ·to transform the

economies of the LDCs so thr,t they mic..ht attain self-susto.ined development

coals. - . ' ' .... ·,··

2~4 ... - ; : l'iith the help of !Jm-1 ProGra.mm.;··of Action.:.:f<Jr the 19\JQs it ·,;as hoped

' : ' •0,. I • ~ ·~· ~' . •' ,< : :.. • • ~

policies would be found;· to. deal.' ~lith: problc.11s · qf t~~.de 1 that appropriate

transfer. of technoloGY 1 ·shipping 1 finc.nce and 'ohe reform .. o;\, .. the actl.l§I:J. economic ··. ..~.. ... ,_,,

structure in orfl.er to be <J.ble• ·to tro.nsform i;he economies of the LDCs •

. . ' . ·' . ~ . : '• .. ·.

24-5' It ''as not easy fol' the represent2.tives of the LDCs at l.rusha to

convince tl:eir · colleac;ues in the Gr:oup of 77 of the need to ·take such drastic

. '

CM/984(XXXIII) Page 83

measures .in favour of the .LDCs. There· v1as resistence in the areas of em~rgency·

support;. investments,. commercial policy me:,sures, .,especially on problems of

tariffs and non-tariff barriE:rs, the G.S.T.P., the HIF compensatory financing

facilities, etc, The arguments advc.nced by the opponents of the special

measures for the LDCs were-suspicious that·some Transnc.tional Corporations

'could invest in the LDCs e.nd take e.dvantace .. Qf the privileGeS accorded to the

LDCs to enter nurkets of t_he developed cou.11.tries under the protect~on of the

. tariff and non-tariff barriers. -This \'Res eventually- amic8.bly resolved in Arusha

but it emerged in a different form at .UNCTAD V.

Issues ar.·ainst the Nevr .Pror.-,·rammc cf .. Aotion at Planila

246. Two major:problems clomirotcd the debates in the ,Necotiating Group VI

which· k>ndle<l.antters of LDCs. There Her~ ideoloc;ical conflicts between Group B

cmcl D1 and the fear to provide funds.- for the LDCs, ...

Ideological Clash Between Group B and D over tho Probl~ms of LDCs ,_

2l~7. At the begi,minc of the Conference, it appeared as thou.:;ll:· there >m.s

general sympathy for· the LDCs.- Group B he .. cl Finland as spokesme:n. This had an

• enoouracing effect to the representatives of the LDOs because Finland is one of

the Scandinavian countries reknown far thGir: _sympathy for the developinr; countries . . ... -.. . . in ceneral and the LDCs in ~~rticular. Tho r~merks of the Group B spokesOL~n

from. tho 'besinniilb 11ere reassurinG• He referred to the .problems of the LDCs

as the ·concern of the entire International Comrnuni ty, . He analysed the draft

--------·resolution of· the-nroup of 77 on behalf of Group B and exprGssed the interest

of his Group for the Programme of ii.ction oh sh~rt~'tSrm a1ld lo!l(;-term .mea.suz·es.

He pointed out that due to budc;etar:y considerations Group B countries 1~ould

find it difficult to implement short-term raeccsures. Group B could not see hmi

financial resources could be mobilized in such a "hort space of.time from 1979 1981. He pointed out- th2.t ~he buclc;etar:y provisions for 1979/1'9SV nacl already

been made. The financial requests made acvordinc to ·tile dn:,ft resolution in

··question coulcl only be allocated in 1980. All this shoteed some sympathy~ The

LDCs representatives were Bomawhat encouraged,

24l3., As noc;ot)"Ging pro;;r~:ssecl 1 "-Group B revealed their ideological approach,

They explai'""d that their coun·ories believe th.:> .. t the solution to the problem ley

\-'.

CM/984(XXXIII)

·Page 84

•

in the:LDCs openinrc: thoil" doors to investments. It was futi-le, 011 one h:md

to be suspicious "of investments and 0•ot on the ether ha.nd deraanci finan<;>ial

a.ssista.nce. The LDCs should open their doors to foreicn investors if they

wanted 2. speedy transformation of thc:lir economies, They also eXplained the

meaning of the term "international community" , .. They said that the LDCs h:we a

te11dency to look to Group B countries ~9r Ufinancial a.ssis·i;~:.,nce11 • As far as

.they -were concerned the en·circ international Community had enough resources

to .meet th€> problems cf the LDCs. These resources were found ir) the. developinc . . . and in Group D countries.. This was, in fact, in contradiction to the fears of

cabalistic tendencies of the Group of 77 countries which vJ:'.s raised by other

Group B representatives in Necotiatinc Group VIII EODC,

buck,

Nevertheless, it 1vas clear to necot~a.tors tho:.t Group B was ~assing the

As the time went. on 1 Group B spokesman reviewed 'oho on'oire Programme

::.:•· of Action enf. stated 1 by 1vey_ of shruccinc res.pousibili ty, t11at' a. strong fmmd­

·.ntion- had already been laid in fa'\our of LDCs aml 'ohat ha.cl been r.ecocnised by

UNCTl•D, · •Again this was no·b consist0nt with facts in view of the UHCTJ<D Documo:ri.t

TD/B/AO.l7/7 which st!'.ted th2.t the economies of ."t!!o LDCs was in the d.eclino, . . .... ~ He ~>wntionoiJ:.:%1\:c 'ineetinc;s {){·'-tiiel:iultilateral and Bilateral Finc.;1.cial and

Technical Assistance Institutions <lith the ropresentati vcs of the LDCs of

November 1977' and the Seconcl Session of the Inter-[;overnmental ·croup en LDCs

of July 1978 as a si[;n of determination by Group B countries to s·ol ve the '

. problems of the LDCs. He llichlic;hted the achii)VIir.18nt of his Group on problems

of debts and. fcrei;.;n aid which increasec'. bet1;een 1972 to 1977 a.nd beinc :.;iven

on soft terms possible.· He claimed thc1t the O.:C.C.D. cow1tries had introduced ' ne<l cuidelines to ensure the success of the projec·cs financed with OECD Fun.:'.s,

He stt'essecl Group B' s acceptance of the self-reliance pro','rai,~lle as a joint

effort by d.eveloping countries to achieve economic independence a sharp contrast

to 1;hat Group B spokesma.n felt and sc.id. in the liecotia.tin,:; Group VIII on ECDC,

2 '50.

into

At ·che_·.end of ·the long clebp.te, Group B indica.·oed :their readiness to enter

no,:::otiat:i.,"c; to est~.bl:i,sh a compreh0nsive system of assist=ce.'for the LDCs

as a demonstration of their interest in the LDCsi

251. Like Group B1 Group D revealed its ideol?cica.l appronch to the problems

of LDCs. Their spokesman stated that his Group lm;l c;enera.l sympathy with the

1:-'~~.·c.~; t">!Hnon+ ;..., .,.Nhi_ch the LDCs founcl the1i1Selvcs due to the way they were plnndered

CN/9B4(XXXIII) Page 85

•

by colonialism, capitalism ani: tranSJ1ational' corporations. He listed a nur.rber I .

. of LDCs ·oo "Jhich the Group D countries extended economic co-operation, and

adC!od .11 N:lthout interferint:; in thG i:i1ternal affail"S of those countries~'~.

"Follo;linc a systematic cletailed account of the a.ssistance civen by the

Group D countries to the LDCs, their spokesman entered into an ideolocical ,, ' !.

exposition more-or-less in the sr.cme Nay as Group B had: explained their policies

on economic development. He stated that Group D supported the marshallinc of

the resources within a country and use them for development. ·The LDOs have·

enough resources of their own which they co~ld use for their development if

only. they kept out foreic;n investmer!t. lis far as· they were cqncerned 1 the use

of .the word "i-nvestment" in the draft resolution meant; the deployment of the

country.'s resources to the exclusion o£ foreic;n '.J:ransnational corporations. '·

Group Dt rod tiven aid in ac.cordance vJi th UN Resolutions but it was only in form

of ·manacement and technical assistance ••i th a vieH to reduce the activities \

of the monopolies. They expressed their faith.in th~ Arusha Programme on

Self~reliance ane, the concept of social needs ~ayin~:· they hoped it ;~as meant

· to follo~1 the socialist 11pproach to economic dGvelopment • . , .·

The Approach of the Group· of ]7 on Li:JOs

2.~3. The Gr:~up of 77 h<e.s not impress"ed by the "'tti tude of both , ..

D who used tho occasion of UNC'l'AD V to propound their. policies on

Group B and

the LDCs.

They 1-1ere evr:m' disturbed when the tl1o Groups indU:lc;ed in_:1deolo;::i~al clcl.shos

on LDCs issues. Their spokesman s-G.:-:.tcd ·Gh:it the developi~1G ·countries recoc;nisecl .. _,

end "11ppreci11ted tlie c;oocl work and the assista;.,ce c;i ven to the LDCG by the

developed countries. What lias needed; hcn·mver, was the support for a crash

proc;ramme so that the projects beneficial to the LDOs coulrl h,; implemented.

254. They pointed out thc:.t the situation Has bloal<> There was a lot of

natural resou_rce!l but they could not be mobilized., cor l11ck: o:f skilled personnel,

facilities for traininG 1 funds for investm-ent, --~_.It-o l""~T'oJec~-~' food prOduction,

tracle 1

projects 1

. rural life and most import"n+.iy • all th~" st.:ttistics of the

UN show thD:o everyth.inc; in the LDOs we:.~ ir •he __ stn te of tlecline ~ . , They l-Jished

th::t.-G each country could be vi0.t-:o·cd on i .l' merit :rc.. t'her thc.n indulce ih ' .

id0n 1 ogioa.l 8.R8~ VP.,....('3,i; i nn R •

,_. ·:c ..

2_'55.

';,• ,·>;,

· .... ,.

CM/984(XXXIII)

Page 36

The .LDCs prossed: the ·developed· countries .to o.ooept th11t ill~C'l'i•D V should

' request the. General Lssembly ·tq. convene 1 uncter the auspicss of ~CTAD, a special

UN Conference on the LDCs··•jhich would: finalize the substw.ntial New Programme of

Action fer the 1980 and. provide an occcasion for the pledginc of support for the

LDCs •. The conference accepted this ·request•

~ile Jati tude to Request for Financial Assistance

2'' ~ . - ... .. :.'· The succe·ss o:f the Comprehensive ii'ew Prot]famme of Action for the LDCs

depended e1itirely on the availability of Funds and thll co-'operation of the developed ,.,

countries vlith the LDCs, This co-operation ;/iis not forthc'omint:; from either Group

B or D. The representc.-ti ve of ~'ranee spoke ·(m lJehe.lf of the c ount'ries members of.

the EEC and cletailed uhat he believed to be the good lvork done by the Community . ·--····· -·

to the LDCs but did not commit the Co~uunity regardine their.policies on future

assistance to th8,,~DCIJ,:• He saicl that apart from the problems· of debts Which had

been dealt lvi th .accordi.nc to 'i'rade•and. Development' Board Res<?_lution 165(5-IX) 1

tii~ EEC had set ~side $1000 million 'for· the 'LDCs and '$385 t~illlon had been ' ~ .-1" •

contributed, Avoicl:i,nc to deal specific,;,ily vrith the requil·ements cf the ·draft

resolution on LDCs 1 he decided to ce.talor;ue the achieve,nents of the EEC in civing

assistance to the LDCs. He said the ste>.bex system applied by tho El!;C to members

of ACP which heed amant; them two-thirds of ·Ghe LDCs as a result.', $800 million wc.s

transferred to the Third 1/orld countries uncl these was $1 1200 million in

commitments. About 3Cf/o of the EEC imports co,ne ·fr"c'nl·the de'Velopinc countries

and since this year, the'EEC had introduced a GSP in favour of the LDCs.

't'IJ11ile st..:.. tinr; their achieve~nts ·in their ·oolicics 'o'~;er' the ACP countries, A ' : !•

the Group B countries felt thdt .. tl\ey:,c:lone ],ad C.cne a lot for the LDCs. They

thout;ht the interm:.tional community should slmre the responsibility as well. , As f<J.r as they were concerned "the international community" meant 'Gho UN Agencies,

., countries of Group D a;<id Gr0up of 77 1 es,oecially OPEC countries •

. ;·' . ' .. ;·"' '\

258. Group B and D countries opposed all projects that required financial

assistance. Group B postponed all discussion·s which involved fumls until towards

the E<nd of tho conference,.· They repeatedly stated that their Group was net ready

to discuss money matters, Tho facts of the situation l'iere thctt Group B was divided

betv1een tl1osc countries >lhich were ready to ";i ve money and tho·se which resisted -

L;i vine:; financial assistance .. (~he:. S<:;.o.nrJi nr-tvi::u.t countries, Tm .. key and Australia

·.·

CN/984(XXXIII)

Page 87

taking a different·. attitude). They. Her'e partict:larly inir!1ical to the riaracr'!ph

in the draft resolution t·Jhich call eel for clotlblinc ODic assistc.npe .. froll). the·

previous tar~c:e:Lof o. 7'/o to 1.4% of GDP. ..~£his Has passed to p~-~~ate, n1eetinc of

Heads of Delece-tions of the Group B countr;i<S .who. in turn recommended the

l'lil~~rinc d01,'11 of t])e draft .resolution and Jefused to consider the depo.Ii tic:i,s:- ''

at ion of ODA o.nd the equitable flov.r of ODP. to thG

finally decided .t? double ODA as: soon· a.s PC>ss:j,b1.e.

develo•~inc count.;r,i.es ~: .,.,T,l\~i)':.,:.

makin(<;''i t indefinite, ,, ....

259 •· Group B ,,as equally inimical t.o any proposals in 'the draft resolution

-l'lhich required f\mds, They made it ab-mdantly clear that they loathed section

IV ''bf''''the draft oresolution on LDCs en1i tled "Fironcial Assistance· requirements .. . \

a~d:..Po'i:16ies"·• . They reserved their ,osition on Section' ·IV seyinc their position

· on the· 'section had already been. sta'ed in Document TD264.

260. Tl:.e Group of 77 stated th<t they attached. cre2. t ·importance to the ) t . . . . ,.; ! :

problems 'Jf the LDCs •. They need noney to alleviate som(o) !k"t'tural :lisaste'r·s,

such as r,..cposure _to cyclones, drlu,::ht 1 desertif.ice,tion flood. disaster, lacupts

as. \vell'as ·fi,:;;)lting problems of development.

The H.esul,_t_Qf .. }le Conference ..

261 The draft Resoluti n Ha.s r.tclopted by UrJCTAD V by concensus 1 but the

p1licies expressed in the Plenary ·tll?.(le it

:a_d not chall!:;ed from the st-.lnces they. held

.clear that

c1:urinc: tlJ,e '·· . '

both Group B and D

30 d::.ys of the Co11ference.

··~he- effec·t of this''<<E>s ·ob'. adoption of a ,Hatered resolution on LDCs.

Group D .- .. '

'252. Group r s·Gr.ted in 'Ghe Plene.ry on 3 June ·th~> t tl:o;y believed in the

·,·policy .of. n<'Je-iJ,terference in the internal affairs of the LDCs and added

"l'le ~·eseriTe om· position on financial assistance to tho· LDCs" • Their spokesman ;~ •IJ • • I:

sai.i tl!ey ·were not happy >Iith _the interpretation .of "che social nee as concept

bJo"-use it 1vas :r>estriotive·. on heal th 1 education and it would .. not provide for

tbe settinc up of an independent national econonw•

Group B

CN/984(XXXIII)

Page 88

Group B coi.mtr:i,es renained divided until up to the end of the Conference,

Consequently, the policies of each country were stated-by individual delegates

representinG their countries. T:~e Unitecl States delecate st2.ted that his

country welc<lmed the resolution a,nd looked for1vard to the implementation of

paracraph 13 which reaffirmed "the conclusions acreed and the commitments ·made

by donor countries "at the meetir.g on 31 January 1979 1 of the Committee

established. under· General 1•ssembl,y Resolution 32/174 on some aspects of t)l.e

transfer of resources in real terms to developing countries". He said the

United'States reserved its position on the tar:;et of 0.7% mentioned in the

same paraGraph. His coun·~ry 1ms ]lreparecl to pay accordinG to its budc;etary

n<Oeds b'u:~ his c;ove~runent could not coinmi t itself in advance but ho:;Jed to expand

the assistance when necessary,

The British Government reprcsentcctive stated that his delecation

reserved its po3ition •. Britain had increased its aid_.and· hoped to im~ove on

its aid t<hen nJcessary, He recrettcd not to be able to an_nounce the:;rincrea.se

of aid along 1vi th other members of Group B at UNCTAD V be cause the ne1;

covernment vas still in the process of reviewing its financial aid policy,

howkver 1 tnat would be annorn1ced in due course. I

265. The main fe11tures of the Hesolution adopted by UNCTAD V on LDCs by

conce<SUs lvere: to launch a comprehensive Ne>J Pro,;-r~mme of Action for the

Leo.>~ Developed countries and called for the provision for miich·larc;er flows

o: assistance to LDC.

The Hesolution urc~ed all donor coU1'1tries to increase effectively and

substantially their· official aid flovJ tmmrds the United Nations target of

0, 7% of £.ross n«.tional income 1·1hich Has fixed by the Gener<.l itssembly for the

1970s but ho.cl only been achieved by a fe>l industrialized countries, UlifCTAD V

called. for the doublinc; of the tar,jet of o·. 7'/o as soon as possible 1·Ji th

r~spect to the LDCs,

The main features· of the Resolution aGreed were:

I

,

II

III

IV

v

VI

VII

VIII

IX

Cr-1/ 9 84 (XXXIII )

Page 89

Immediate action Pros rawme (1979 - 1981~;

Substantial New Progran:.mc. of / ... ction for the 1980s;

Deta .. iled ~teps for the PlanninG and approval of the-"··

substantic..l Ne 1,·r Proc;ramme of action for the 1980s i

·Fi11a.ncia.l ll..ssista.nce require!llents and Polici.<3s;

·commercial Policy me<::·.sures;

Transfer of Technoloey;

Shi:ppinGJ

Applicetiotl.j and

Further work for the LDCs.

.I'.i'EI~ l6(a) and (b)

.L'llldlockcd and Islaml Developing Countries

CM/9"84(XXXIII)

Page' 90

Item .16 (a)

268. At 1Jl.!C'~J\ll IV in lJairobi in 1976 1 tho delosates adopted Resolution

98(IV) and ret OG.I'lior conference the iJHC•J'AD III 63(III) ;md. 109(XIV) of

'I'rade =d Dcvelopmunt Board, which s;_:>,o;J.J.J:m. out-tlfii ·needs of. the landloclmd

countries and the Isla11d develo;?inG coun·orios. A J.istinotion was made

between tho land-locked···and the le~.st. devo.loped countriGs. It so happens

that 15 well.

out .. of

'l'hc

19 countries -classified as

economic 'Jioi-fo.rmanco ~-of the

vii thout· a

,)-.

landlocked

sea coast are LJCs as

. .;

countrie:;( in the 1970s

t•as, on tho t<holo~_.llll.impre:;sive. The docUfllents put fortmrd _by the UNCTiiD

Secretariat at tho 9onfer,mco showed that the per oapi t.a growth rb.te of

t -~,r.:re.-al product Of these ccu11tries as L!. group n.verugcd only 1.1% per romwrs

between 1970 and 1977 compared to 3.1% of all developing countries. '.l'hirteen

of these countries recorded a par capita growth rate b6lolv the avernge and

six vmro noeo.:Gi ve.

270. SomGtimes lack o_f ~ccoss to tho sea is vmrsencd by ·the distances

to tho sea, re_motencss and 'isolation from \VorLi markets. Costs of in·t;er­

national exports cause immense difficulties to thu economies of the land-

' looked cow1tries. Among the outstc:.ndin_g b<j.I'r~_'irlh:to tlw economics of these .;-~-.l

countries are inadoqua.te facilities to and f~om t11e soa1 at the seaports 1

delays and unccrtaini ties in transit 1 trnnsport opern·cions and complications

cuusecl by commercial ~d legal aspects of crossing foreig;q,. terri torics

which sometimes causc.s high prices to the goods in trffii~i-t in relation to

t1orlcl marlccts.

271. Solutions to these probl:ams t~ould require co-oi:)cration between ; -·

the land locked com1tries "Gogc:·~hor with their transit noighbouts with

full support of the in·Gerna-tional• community. 'fhis would r&cluco tho roal

--------:-· . ·'· .. ' \ •'

CM/984(XXXIII) Page 91

costs of access--to __ and .from ·the. sea c:nd to world markets and .. to improve the

qU:ali ty 1 effic~ency a.nd re li<:l.bility of ·transit transport-se~Jil..~"ld to . -i~.~- . . . .. . .

ml.nl.m~ze legcl· and 'proce'dural impedimp11ts. _o.'he land7 looked countries them-... -.... - ---..:._:_;· .. . . . . selves >muld have to restructurtJ their economies in-;;;-d'or-to -attjilst--'-to their

handicaps, The international community ·v1ould have to help the land-locked

countries offsGt thG cost of transi-t problems mid improvement to their

transPort systems by-'giving t:hc,'m forGic:;n aid. ' .

llrushn. RocommenU.cti·ons ., . "'

The .'\rnsha IvlinistcriaL.Con~erenca.:ndopt'Gd a number of measurGs

which it believed could provide a solution to the problems.of the land­

.locl<:ed countries, ThesG \;ere: . -· ' ... ... . . ! .

···----·· • ,, •I

';

CO--operati6n3~l~i;~~ land-lockGd. countries and

transit countries;

' .

' .... IritetSrated., regional a.ncl subregional -transport planning;

···~.-. --·~- .. !"C:.-:8

.::.-The choice and devslopmont of joint 'policies with .... ·;,

respeo·h to priority arGas;

RestructurinG and diversifioation,of the economies of

land~looked dcvelopinrr countries;

Appeal for more oon-tri but ion to the Special Fund .of

the land-lock~'d: countries; : ,.

;l'o recommend to the Secretary Gensrai of UlWTAll to . .

intensify the studies of the special problems

of developing land-looked countries,

Drcl't Resolution at Manila

The Gro11p. o:f 7,7 incorporated most of th12 ideas adopted at .Arushc.

into tho draft resolution in N::mi;La ~;!rich formed the basis of the discussion

at tho Conference. .~lost . of tbosc icloas. >1Cre adopted evGn though they were

additions from Group Band D countries.

-

.:.

... r. ; .. ··:

.-

·".

CM/984(XXXIII)

Page 92

·1-:) The d<:Jba.te in· the .conference. •ms cent-red on the ·problems of semi-

• :.:.J..'

land-locked coiintri~'s,· tho Treaty of 1965; inj;egra-ted regional approach and ~ ~ ~\.

the_ reluctance by both Group B and D to finance projects of development in

the land-locked countries.

275. The first .pro~lem_enoomltorcd by ~he Group of 77 was the definition

,·_. of the terms -"geographic?-1 dis_a.dvantaged" or sc~-i'a.nd,..,locked" coJ:!l1tries,

This_ OUJl!e from tho Af:;:io1J.!1 counj;ri~s-".wh~ argued t~mt s.om~ of their countries ..

have too -sma.;n _coasts which make access_ to the sc:a alm?_s·h meaningless_~

These countries suffer the s~~e disabilities as land~loqked countries as : . ~ . . .. . tho bulk of their territories ar.a iiilanCI. and their products are largely in

~ .. . . the areas where there are no· coas't"i;i areas. Thi3y-·argucd Ghat the'ir transport

problems are ·the same- as the land-lock~d countries sihoe

' traverse through other terri t9,ri_o.s to reach the sea.. They dematJ.ddd to 'be

. accorded,· ·by UNCTlill; ·the same considerati?n as land-locked countrl.es.

276. Some members. of the Group of 77 argued that lot of countries

~ . -.. . ·:.- ; - . semi-land-locked .term" was .u~ed have very small coastal areas. If the

widely it· would spread to nearly :111 c?untrie's. ex'cept islands. The idea

was finally ado'pted;bY the plenary in a separate rcsolu·Gio.n. a,s a_ special . . . . . . ' -~ .

case applicE'.blo to Zaire. Tho Group of 77 decidlild~not to ·irwlude· it in I • •' •" ;~;

tho .reso~~·tioh ·on land-locked countr_:i;~··:'t·ec~use it had not beon·in.cluded

····· in the .Arusha ... dooumc'nt. ; ---· •'','.

-;· .. ·_::::,..----. 277.... . -.:>:.:-;_,~Sortfe members of the" Group of 77 demnnd ·the ii10iusion 1 .i}h}:he

draft resolution, for the can·on all members whiol1 had not done __ sc><,to

·ratify tho Treaty of 1965 on Transit.Territories. ·This Treaty was"adopted

by the General Assembly ·in 1965 but several countries, es:[iecially- from .·.

developing countries(ha;ve_'not yet refified.it. The call for ratification

of "!;lle Treaty ';as opposed by some Asian OOlL"J.tl'ies '·rho claimed -~hat that . ~);~:;•: ... ..

·-was. tantamiiun·t to giving Carte blanch(( ·to o:J;hcn<;oountrics to paf?S through

'iii~i:r territorii')s unrestrained. The argum0nts preferred at the conference

nnd other fora, before UNCTAil 1 ·-i-mro politically inspired and had very little '

to do wi tli -~he economic realities of the si tua-Gion. I-G is notmmrthy that,

although the African countries vroro not actively involved in the debate

Ci!-1/ 9 84 ( xxXIII)

Page 93

·· on_:~his_.P~~u.e,- soma_of' .. ·thenr·had. joined the 4Bia.n· ooWltries to

oppose the ratifioation:of the Treaty ct other o9nferenoes-Su~h a$ ECOSOC

or illiDP 1!Iectings.

278 '~" . ... • l'l13 via.s the c2..se in t!1e LDCs, the Group B and. D cou!lt~ios expressed

' ' their 'sympathy for -the plight of the 'lri.nd-locked .countries ·~ They stated,

hm·;evcr, 'that· tho pli:ght of the -land-looked ·c.oWl'trios s}?.ould :be ... the • I J ;, • • ~ • •

. responsihili-q __ of-.:t.h.e-.en.ti..re-..i..u:J:ern at. j ·anaJ .oo.ulmiini.ty. T~cy di _sapproved a.ny .

'ideus· that implied that the ·a.evclopcd. countries·, h.a9-.;-n··gre~ponsibiJ.i.ty ' ~

·!;han any other group of countries.

.OJ ;,,_,sas

They 'looked .. for-~sca.pe--route~-by. . .trying t .9 amend some of th:e . ~ . :. ·:.

i nr:t:he.=.dra:ri:. -~esol.uti'o~-l. Tpe · pl<:>.,y _on wor4s ,.,a.s,;hcl..:t.e.d.. by the Group

fJ.f, 77 who iriuned±atcly produced evidence that SOill3 _of'the phra.ses""a.nd clauses

~hat the Grbup-~)3: and D countries v1ante~ to amend'...w~rc-i..n f"'ct~en-lleJ:_Q.erti m

from some of -~he resoluti.ob.s.. s;wh as--6_3.(.lli}.,-98{IV),. 109(XIV) of the Trade

nnd...LleVelOi)IDent Board i;o wliich they UCTC a part •

2P.O.

apparent in the debate that they -vrere hostilo.:to.-.any-~mrhitme:Ut-- t.ba.t

required .funds.

·'· ·:, Decision by the Conference on ·i;he Land-locked .countries

281 •.. 'l~e Csnference M.opted Resol~tid'n '.i.'D/L.l7~ uhich s~t. ouf.,a.. series

. of steps t:o bo ici:Em by the interno.tiona.l organisa.tion.'s'. and d~:Vel~~e::l : . . :.:. .. · ...:... . . . · .. ·

countr:t,es i;.o help offset their geographical and. ec~n~mi~ disadv~tages. • •. r ,.. - ~ . • -;.:. .... .. . . .

The Conference cc>.lled for, exp~ded international ' efforts to heip ·de,;eloping • .. • . t

countries without sea coasts since 15 out 19 of. them' were ~~ong the least

d~velo:ped.

282. '?he resolution adopted outlined·the objectives of aid to be

given to ·i:hc la.nd-locked countries such as:

283.

' . ~ ·,

CM/981~(XXXIII)

Page 94

·-·· 'i'o· r~duce. ;thn -eosts of ·access to and from tho sea and

1•or~d m~rket s; ' ' . I '

To im~r~ve transit~'t:ro.rispcift .~driiices ::md ._.IV '.·J; ;:·n . -~ f_f'.!;. 1 , ~~ · ;:,

-· •ro restruc;t.ure t.he. ooanomias of tho land-locked ~ ' .•. "~' .,_. ·: . ~-.':-::::; ~-'.-~.: .. .': "..> '.L;- .

so as

to overcome their geographical handicaps. <:r: l . ' ·'·'···.

The: Conference : i.i . .

·. ' , ;',·UJ • ·:·· 'j<"' .-yo- t

··· · · (a)· Re8.ffirnieci t!lil.t mutilatef:hl and· bilateral- financial

inst:L-tuirions o:EihoulcL.in:Genf!i.fy. thqir off9r.ts in raising

. th'e . flm-1- of resources fo;;> the development:.: of. the land~

· · .'locR:G'd oountr:i:os. · ' .

(b) The international corruri~iiy ~Ias urged to give strong

financial and technical· support for road, rail, inland

waterwcys and airport construction in these co.unti::i!'<l~~f_g;r

better communication links, and to improve transit.and

'(of The Coilferance rec.ammcmded that goverr:monts should invit6

·shin o~mers end insurers to establish freight ratl:lsl~.rid:::· . "" (' :~ ·'• 1:.~ '

p..;.omim which would encouraga the Cl:J!'IXmsi<ln of''~:Xports from

the land.:.locked countries~· .!.

.•. (d). UHCTI'.D, V urged the cl.evelcipod ne;oions ~.d· others·, in t1

,,_,_

posi tic;m · ·ba do sa, to contribute .. to i;lii) 'established UN

·~ Special ·Fund for 1,;,.nd-l~ckod cauntric~·.

(e) The UJ:IC'l'Jl]) Secretariat Jqas requested to continue to .Iroolce

studies an" the special economic problems on land-locked

countries, their transit-transport situation·~•d their

experiences in overcoming their difficulties. In this

caso 1 tho UNDP was invited to increase· its' aid.

· ..

CH/984(xXXIII) Page 9.5

(f) For any transit problems to be solved, the resolution

strossecl the need for the· integrated planning ihvolving

close co-opera·tion betwelm l.:md-lockecl n.ncl the transit

countries through uhich their tracle passes.. Tlie Transit­

transport infrastructUres need to be effectively improved in •'\.'

beth land-locked and tr~1sit·countries.

(g) Tho resolution declares that "international organisations

and institutions should give high priority in"thoir

assista,noe programmes to. infrastructure projects~

(h) Group B said they often abstained on vote on the Special

Fund in the General Assembly, ·Their attitude had not

chan~ed._ Thew said they preferred to give their assistance

through other channels.

ITEM 16 (b)

Pl'oblems of Island Developing· Cotintr'ies

284. In many cc:.ses 1 the problems of the Island developihg countries

., ~-\ . ; ··-are similar to "those .of la.>id-lockcd countries but not necessariiy as -those

of the least developed countries. Thoy suffer major handicaps in transport

and conununico.tions; greet distance's from ma.rk~t centres, highly limited

internal markets 1 lack o~ l!larketing cxi)ertise, low resources endowment 1 lack

of natural resources 1 heavy dependence on a fm1 • commodi'•ies for the foreign

exchange onrnings 1 shortage of admi11istrative personnel and heavy I"ina.ncial

burdens.

285. Tae Group of 77 at Arusha adopted priorities for action a11d

assistance for the Island Developinc; Countries. Those were:

a) Effort to diversifY economies of Island developing

countries;

286. -

CM/984(XXXIII)

~f.~ge 96

b) Fnciliti~s to be provided in order to have acces~ to

·markets b;y_ assi stine il:l trade promotion ·and th~, -~implica.-

. 'tion ~f preference procedures: '~lo ·!;hat small administrations

·and enterprise~ could t~~e.advantage·6£ p;cforcntial access

to markets.

c) The international comm).Ulity should actively assist the

islcil.d developing countries to procure private foreign

investment for export .. :ero-ee.s.sing 'industr.iles, ·other . .

industries and. tourism. More inve,s.tment is . required for:

·i) water, eiectricity, 'i~dust.riaL.devclopment and • . --~~.

ii) .E~tabli·sbment- of-:. a.pp~opriate technical--education

and training programmes, including. the areas or ;

m~kcting 3nd;management;

iii)-- Establishment of joint ·;ventures ~p~n.. 'request .. by the

i:levclo p:lrig :i.sland .. countries ·--con®~ed. . . .

i v ) .. 1J.s.sista.nce. . .i.n negot-iating with · foreign pri va.te

investors.

r

At Ul~CTAD V most matters_ affecting the Island developing countries

were-discussw jointly 1'11i th the land-locked conntrics. Policy issues ,.,.ere

·hearly the some except in very insignificant cases such as in- t he case when

the developed conntries insisted th~t Isl~~d developing countries should be

further re-classified into the richer and ·the·poorer ones. ~1ey could not

accept t~t the rich islands in Asia should be lumped together with poor ·. . '

ones in Africa. They rejected that .the quest·ion o:f to.:ri:ffs a.nd non­

tariff barriers should apply ey_-ru.~ly freely ·to · Isiarid developed countries ,.~ •' F ·~ 0

as -the case applied to least developed countries. l-leal th islands in Asia : . . ,

and La.-~in .America coul6. ca:use havoc in the market economy at the expense of

the .. l :east ·devclo:::]ed oo~tries if their goods were aliowed free access to

developed colli,tries 1 markets.

= ·.•. '

CM/984(XXXIII)

Page 97

Decision of the· Confercmce. on Island· Developing Countries . ·,

'Tho Conference adopte:l. llcsolu·Gion 'rD/1.170 _on Island

Countries. The resolution. set out a series of recommendations

Developing

which tho

international community should take in order ,:!;o'alleviate the geographical

and other"'ha.ndicaps. of isl,and .countries of the Third ~lorld: ·•.

- •,,

a) -~~e Conference called on the Secretariat of UNCTAD 1

bther parts of the. UN System .. and .. ind$~alla.l.natioi:J.s to : . . ·,.:.~-.": ~-~; ':

·help the i sla.nd countries. ,;. .

'

b) The resolution listed practical measares.to be taken in

~

.. oL ..... order to step up•econo;nic diversification, so as to lower >~-' ••

... :. · ..

'·"· thesa islnnds 1 vulnerability to economic instabili ty 1 . . ,•· . facilitating their access -to foreign __ markets, support in

their sear~h for foreign in,;~stmcnt 1 subsidization of inter--:

i~la.nd transport 1 a:osistance for efforts to combat natural· ,

and man-made disaster, simplification -a£. assistance proce.dures,

·intero-country oo-ope.ra·~ion and inteBr<'-tion sohcmosj and

graatcr usa of their ~arbours and airports by international

shipping and aviationJ

c) The Conferenca askad tha UNC·rJD Secretariat to continue . (. }.···

its \~ork to 11ssist island dovaloping.eountrics 1 and

decided that the Se~rctariat should oo-o,.,erat~ with ' . . ~ .

other ins"ti tutions in co-ordinated studies of the. common

problems.· of isia.nd economies. These studies would be'.

considered by the eovernments oonoern.:.d as a basis for

follow-up action.

d) UJ:!CTAD·V invited the I;,~terna:i;ional Civil Aviation

Ofganisat'ion (ICAO) to support tlie efforts of the

island ·countries to o.oncludo mutually saoisfaotory <J,ir

service agreemen·ts with na.tional airlines in view of

the importance of the s~mrcc of incomG 1 employment' 2nd

foreign"'exohange for somG of these countries,.

'

CM/984(XXXIII)

Page 98

e) Group D was negative to the urging by the resolution for

~he . support " for · the seareh-:for : pri.va,j;c_p.:lpit~l on -b ehal:f

-of--the .i.s1.i.ffia··cannt;ies-.- ---Gro~·--n . s-tQ.i;~fl._ that :foreign ... ... .... .

private capital was negative D.nd explained that their

views on this . particular subject. .w~re-well-4cnawn to the

. UN Conferences.

.-cont '.d •• : •.•

~-... CM/984(XXXIII)

Page99

ITE!ii 17: TRADE RELATIOWS ·Ai,lOiW COUNTRIES HA1£ING DIFFERENT EGONOliliC AND

SOOIAL SYSTEI,IS AND ALL· THADE FLO';iS r.ESULTING THEilE FRml

288 •. ·Relevant uecisi'ons ·of '·the UN General Assembly stress that the

establishment of a ne1~ international econom-ic. or.der ·.should be based1 amorlb other

thi!J6s 1 on co-operation amonc:; ail Sta·Ges. In this connection, there is increased

awareness no>1 that further progress in tr<:de relations be't11een countries roving

different s.ystems requires the fosterinG of an atmosphere of coodwill and

confidence expressed in policy measures, and legal arranc;ements which facilitate

mutual contact and increased trade possibilities • In 1977 1 trade betvreen

sociaiist countries of Eastern Europe and developing countries increased by r')l-t''C'"·

21 pe; 'c~~t; a.s· c'ompared 1~i th a 3 pe:r cent c;rowth in trade between socialist

countries and developed Il111rke~-economy countries and a i5 per cent amen,; tho ·

Eastern b'uropean countries themselves.

The Arusha Programme noting that some trade pl"ot;ress had been ;Jade

bett~een Socialist Eastern Europe countries and the developing countries, adopted

a comprehensive procramme for Ul~CTAD V. Calling the Socialist countries of

Eastern jj,'urope to play an increc1.sincly active role in bringing about the early •• ' 1 '

establish;nent of the New Internt:.tional Economic Order.

290. The Arusha ProGramme proposed the establishmc;nt and the improvement

of a series of instruments which should embody _the follo>Iill€ measures:

1) Expansion and imProvement of prefGrcnoc schemes

The Socialist com1tries should:

- Expa."ld and improve their schemes of t;Gneralized

preference.

- Grant Preferential duty free entry.

-Remove all· forms of tariff and non-tariff-be.rriers 1

and should be on non-reciprocal and non-discriminatory

basis.

.........

CH/984(XXXIII) Page 100

Increase imports of manufactured arid semi-manufactured

products from develo:;>ing cmmtries,

2) Payment ari"·nr;cments

With!> view to improvinc;'the situation in the field of payments,

the Arusha Procramme suc;,~·ested:

All payments should be made in ccvert'lble currency ( exce_pt

in cases where developinG countries express other form of

payments)

Cl>JEA payments m·rangements should be based on transferctble

roubles,

3) Trade development potentials for exports of developing countries

. ·. ·~-

·The Socialist countries should:

take necossc.ry ilL :.sures to identify and accommodate their lon,:;

and medium plr~ns the potenticl arc3.s of tr9..de developnmnt with • developing countrieso

adopt other policy mecosures Hhich• emuld ensure the e;rcwth of

demand in their co1111tries for products of developing countries

<:>nd consequent imports from developinG countries.

4) Establishinent of joint ve;1turos

The Socialist coun·tries should:

encourace ctnd participo/~e in joint ventures with developing

countries ( whel"e developing co1111tries consider it to be

adv<:>ntac;eous) 1 po.rticularly in the fields of industry,

agriculture and trade,

291.

,..,

CM/984(XXXIII) Page 101 •

5) Financial assist~nce

.(:

The Socialist countries should:

increase their financial assistance to developing countries

with a vie~I to meet ill(': the Q, 7% set-target by the Sebond UN

Development strategy_before the end of 1980,

- adopt necessary me::~sures which 1~ould mu.ke the Special Fund

of the Internc.tional Investment Bank effective,

- be able to arraJ1bo resources earmarked for financial ' a.ssistance to developinG countries and a lowering of the rates

of interest.levied on borrowinG in convertable currency by

developing counti·ies.

Tho Socialist countries should:

_ .. incre~se the level of technical asSis"li2.ncc given'to developinG

countries, in particular for traininG of high-level staff

in technic0l n.nd scient~fic fields, 2.~cl also e..ssistt:.nce' in·

the estu.blishmcnt of technical and sc~entific institutions

or Centres:·~

Based on the c.bove elements which could contribute to the

achievement of r.; Greater and bet·oer economic relationship

between the two groups, the Group of. 77 tabled a resolution.

On the other lw.nd ::;roup D countries also tabled ''heir resolutions

which 11as in the spirit of th8 st2-tement lll01de by the USSR Deputy

293.

CM/984(XXXIII) Page 102

~!inister of Fol'ei.:;n Trade at ·the plenary, in l'lhich he st"ted

inter alia "... • • It would be incorrect to try to apply to

the Socialist countries the same criteria that arc applied to

capitalist countries thus disrec:;ardi11f; the fundamental differences

in their:_ social and economic systems, 'ile could also refer to

absolutely unjustified attempts to extend to USSR and other

-CJi!Ei\ member countries the ccmmi tments relating to the transfer

of material rpsources to deviHo:;>inc:; ccu.-'ltries in fixed volumes" •

\

The draft resolution, submitted by USSR on Trude relations bet,;een

'socialist Ee1.stern :Europe count~ies and the developinG countries

on behalf of Group D countries 'ie composed of 3 major prints:

I. Tho effect of detente limitation of the arms race - The

Final - Act of the Conference of Security and Co-oper~tion in

Europe.

II. A ca.ll for .intensification an:cf exp::msion of ·trade and co­

operation bett;een East and !-lest in both directions.

III. Then East-South trade relations and the willinsness of the

socialist countries to continue economic and technical co­

operation 'iii th developinG countries,

294. The three, main areas of disar,;reem;:;nt:

FIRST Group D \'las insistinG that the preamble of thG final

resolution must have a political content, That is, it

should memion detente, disarmament r the Helsinki li,;reement on

Security vnd co-operation in Groups, The Group B countries

as well ;.s t.hc a.,vu.y or· "('( l·e;jc>otef. this approach,

SECOND

CM/984(XXXIII) Page 10)

Group D countries st~ted that they could not make anY

commitment to OJJA target. The Group of 77 insis·ced that Group

D as part of its commitment to the developind countries should

do SOl

•

FIN./,LLY Grohp ll countries mentioned thdr position; that all trade

fl~~' are interdependent and that therefore East-West trade

must be bro1l(;ht into the resolution. Group B replied that

this trade is irrelevant to the issue "Trade Relations amon;_:

coimtries havinc; different economic and social system"• In

any case; it WQ:s stated,. such··trade is alrec'tdy being discussed

in ·t::he 'Economic CofTilnission of Europe.

In ceneral tb" attitude of Group D countries appeared to

forc·et the developing countries for the. moment and concentrate

on cettill('· a better deal for themselves with the !iestern

countries first.

The· Go11.ference 1 therefdre beint; a >Tare the. t ·Ghc two resolutions

submi tte~ by .C:~oup of 77 and Group D cow1tries vrere ir:!'econci­

lably parc,llel referred the t>m ·resolutions to ·che next ref;ulsr

(Ninte.~nth). Session of UlWT • .,.D Trade and Development Boardi

. ···,·

., .. _ ....

CM/984(XXXIII)

Page 104;

(I) Economic Co-operation lunon:··~ Dcvolcpinr; Countries

~· .. '.

295· Tho neccti.'l.tions en Economic· Co-oporat-ion--nmc;m,:c; Dovoloilint.: C~untrics · (:SGDC) •·]

which took place in i:Ianilla 1iero basoct'ler(,ely -on thG ,ideas ·~mbocliecl in :tho

J',rusha ?ron·rar.UilO llhOSG ferm~latien WaS a rcsu1 t Of a series of conferences and

mootin:·~ h:lcl sin~o 'ffij(;;p;:£ r"'ir-iri Ilai~o~i' in +Iaor;i 1976. : ..

296 • J:iost sie;nificant of the Conferences incluc:o tho meet inc of

the Hoo.c~ of State and ~ovcrru.10nt of Uon-AligriOC. Countries at C.clqmbo in

.:;ucust, 1976, Ilinistors of Trade·-~·{ ))cvolopinr;··countri:>s in riexico City in

:Jo;Jtembor 1 19761 Inter-re;:,·ional :3ocretaria't Grcu~' in Geneva in illlril 1 19781

ConferGnce of i~iniSterS Of ·Forei-Lil ... ·l.ff~Jt~.rs of the Non~iilit:;necl Co.untrios b.clcl' at

Bolc;rllde ln July, 1978 ancl Conference on Toc)micc~l Co-o;x1ration· among Developing

Countries in Bu.3nos Aires in liucust, 1978. In n.r:t;.::.i tion to tho rlocisiGns made .. at tho abcvc-statGd conferences, tho :1rush8. ?roGI"<;"l.ITh'ilC on TI:C:PC took into ac.oount

the d.ocisions of tho .Gonsr~l lisscmhly anll tho IJ.1rt'..do n.nl: De:vclc~J:.1Gnt Board of ···J,'

Ul'JCnD mo.c:e botwecm 1976 a-;:;-::L-·1978. ... -~ .. -- .. ·'-·

297. The :x3riocl. after m;rc~Ii/J) IV in Lie.irobi ~·ras r:1ost frustratin~ for the

clcvclolJil11 ~ countries D Tho Grcup cf 77 :;_:~r0~)oscd a ~)rot::rt.tl:tmc ···of I:10Q.tt!lG~ on

:f:c:.JC to implGmcnt ~ nur.11j(;;r of it:ee~s incluclin[; 1;.0 stul':.iof? tb.c~~t had been m2.clo

on state tradinG OrGanizationS ( :3'1'0:3), i.Iul tiiiG.tion::.l _1-!arlcctinc; :::zntor~)risos (l'II.Iii!)

Guncrc.l System oT "Ti'a<:o "?refortncos (G:3TP), otc~o 'rhe c:ovclo~)od co1..Ultric.:s

O:';l;:Josed the· holdinc. of. s'uch mcotinc o..t tho :i:icht'Ocnth Gession 9f;·:)f.hc Trf,clc 2~ncl

]Jevclopmunt BoarCL. The ~amo. )rO(T[!.rnmG of mcqtings wa~ rojoctc.d. by: tlt? "l~:~vc~lor)ed

c·:mntrias r.:.t tho soq.oncl t?Ossion of the Cor:t1.1i ttac on l:~C~)Co· Th0 matter v-1as to.kcn: ..

to tho. rl'hirty-Thircl ::>Gssir.n .of .th~ ·a(:·n.cr~l .:..sscmbly Vlllich instruotecl tha 3ocrot'1ry.:.. • ".I'

Gonorii.l of UlJCTlill to ccntinuo ccns~lintions ·l·rith a. viovr to· obtain a c.Jnconsus on

th.J G.(loption of tho :.:~ro~ramr:10 of mootin:.,s o Tho .:k:cretu.ry-Guno~P,l rc!lortcd to

tho i3p~ci::-..l Session of the Boc:.rc! thc.t he hac~ not yot · fotmc: a concensus n.monr,

;r-onionr:.l r,;roups o T4o devulopscl countries hac,_ ado~Ttocl a nct)?..tivo atti tuclo G-G(.>~inst

contri1·iutinc tm,..c..rds tho implomontv...tion of th'~~ G.:-:nor.~ll ll.sso;nbly ftcsolution 92(IV) ' : '. - . .

£~nc~ tiosolution 1(1) of th0 CoJ·!illli ttoo for ·,~C_jJC '!•Ihich c::~llc.:cl .i.·or ~up~Jort mor!.suros

to ;_;o t ivon tc 1~C1)C ~-;oro 1:-~rc&ly i~ norel~ by tho clovclo;-~cl countries c.

--.-

CM/984(XXXIII)

Pac;e 105 - -· .

298. :iith this b!lcli<:crotmc~ of the c~estru;)tivc o.tti tucle of thG .countriws of

Grou) B1

-··· -· pe>sition

tho i;iinist.Jrs c1,.ecic~o<":., ::1~ . .t .. rtt.she.., t? .. :;:~roviC.a B. :;_)ro[;rarnmc _\'Jhich. t·zoU.lC_

r:_ ~:r;.o_ak;th.:co~-it~~m.-!,;fi~~--rih.~; -~-allvcl for. tho r2.tifica.tion of tl10

aC.:O~tLnl ~:it--~~:Misha C:n~! ·that'· ihC ·nec-ossfty ··r<rr t'h£i ·:JroGrammo shoulcl bG

stressed ~t VIat:J.illo. ::ull~ tht:.'.t tJ1jCT~·l.:_; V be informed of tho clotormili.ation of tho

Grou;l of 77 to ir,Jplcmcnt tho ;'roc,:r<'~mr.1e by ~ho encl of 1979, throu, h TJilbr;,:U I • I ., '

mc.,chinery notNi thstanc:inc; the 6·-:r.Josi tion of tho (~cvoloiJOcl countries. ·rhr;3 ' ' . . " ' .·... . ., ,. · ..

Uinistors listccl·.c. n'Ofilbcr of IiLGtinc;s they t<Joulc: ·lik..; convene(,_ 'iO. 1979 .-~nc~ o.J.llccl

for the oo-pperi'ltion of the cov;:,loj_)otc countri0s in oxocutin;~ the ~ask. Tho . . . Uinisters in-tensely clis.::.p.~:•roye.;: tho atti tuc~~c of ·t;hc G.c-J"ulo~)Ofl CO\l!ltri8s Nhich

l:rt!.s c2.lculat!3cl to emasculate tho· concc~)t ··of _ . .:::CDC a.nc'!. c~!-~lccl <?:ri tho YH Gvncral

..:·l.s~cmbly, UHcrr.~D an~l '"'thor orc'--:..ns of tho Uni t(;c:. ·lJations tO strenGthen .'.iCDC.

I ,";~ B .. - Rencvwc~. Hesistcnco by tho ~ovclojXlC.. countri:Js at 'Uanilla

':.

299. Grow) B antL D cclmtri\.;S· oft0n differ in their nll~:'lro.::.ch ·to thci :Jroblor:s of

vconomic· dcvolopment in the Third ~:crld c6untrius o In .. I.Ianilla., they Cl.lYl)carocl

to 1Jo uni te:tl C..f:,'!inst tho clcvolo~}in:, countri..;s •' One tryin~; to otitbif'~ tho other

in r_-;_estru~-:tivo tactics e 'I1he :·:oints of cvntonticn· NCrC :-

a) Tho univ~rso.lity ;)rinci;llo of UllC'rAD;

b) · :hethor or not UlJCr.r..:~J \li.lS a focal j)Oint for 3C .. JC;

. '

300. li'ollowinr:- tho complotic.n of the !;.0 stuclics on GJTP, s·roJ, :.rr.II!:s, monetary

nne~ fin:inci,;;.l co-oyerati\)n, etc, the c1cvoloj;ine; countries waritocl to ·hold meetings

c..n~:. conferences c.t national, subrcciona:J,, ro:~ ·ion2~l .:.!.11<.: ·a.t inter-rct_;-ionnl levels

to evaluate them ancl mPJcu <?..~J~jrC~)rin.tc rccor,u.lcnd.n.tions an(~ 2.lso sccik su:.,)ort

mc~;.suros from the Uni tccl !~at ions: Syst'~!" 'an;::l ,9tllor rulev2..nt institutions .. - jl'hcy •

called on UliCTJ;.J)j a.coOrclin[. to thu f~usha.. ~r,o_;ra.mmo, -to fe..cili tate the convening

of such maotinc:s or· confcroncos by :}rovic~in~; scrvioinr.. f~ciii tius ·uhonover such

conforonccs woulL. be hold.to im:)lvment decisions on :UC~OCe~ . Th:.:r Group of 77 \1J'E!.S

. £ully "-"iare that countrios of Grou;) B. am~ }) t·mrll likely to resist such a rEJqu<est

bu~G thlly unc~or-rated tho i11tonsi ty of th.Jir host:i,li ty to tho _J-usha Proc;ra;;nno

on ~C~.:Co · ~

CM/984(XXXIII) Page 106'

301. In OlJlJOsinL· tho m2.ll lJy tho Group of 77 to uso ill·!C 1.£li~J:· facilities for

conferences, countrivs of Grou1) D E~nc~ JJ uvokocl tho ~)rinci)lo of th.:J u.ni vorsali ty

of Uni to(-:. Nations 0rC2..1"~S in ~.1articul ~r UNCT;l~). r.£Lhoy 2..rc.;uocl that UtJCir .. JJ :r1as a

uni vcrsD.l orc,.'.nization a.n~:. cculc: not se:dvice a rcr,iona.l moot in{,,- in- v.Ihich. othor-meL"I~e:rs

of U}lGTL .. D vuero cxclutic~l. They clLi.imccl th;;_"~t n.ny conferonco org<:..niSed U.11.d.er tho

e .. us~)ices of UECTJ."l.iD at ro,~~'icnv..l or inter-reGional levels should Tx~ O~)On -Go all

members vvon thcu(:_;h they tvoro n'Jt loct"..tocl in that rc,_ .. ion. They rcturnoc.l to

tl'l<:ir !)rovious ohstructiva to.c.JGics am: (~cmc.n~LoC~ ·t11at the wattor bo rofdrrcC.

b.:!.ck to th:..; Boo,rrlo

302. ·rho GrouJ;·· of 77 rejected the J)rosSuro b;:r the L..cvclo~,.:Hl countries to soac:

lJE'.ck tho . r,· .. 1;1Gm of sorvicin~:;· moctin.3s l)y Ul·W·r ... ~.:u to tho Boc> .. rc~.. Thoy ar;.:uoc~

th~".t tho Boc:.rcl ::o.nl~ tllo Commi ttoo on 'C~JC ha~l f;·:.ilc.:C:~ "!1oc:msc tlL.! E'lattcr Vl£LS

devolopm.3nt,

303. On th~) question of univcrsali ty :?~n::.: access to confcroncos ::me~ C~ocuaionts

on ;nc·~··c, the c~ovolo~Jin:·· ccnm-Grio~ n.r;,uuc1 tll .. ~t other rtlO~Jbors were froc t0

~_;artici1x:::tu or .seu (:'.ocuwonts e .. s lone ;~,s th ... ; t:iscussion h··"!.G. rea.clwc-:. thu st<'.'!..t;·o

ullon E~ll mcm~Jors should Go cal lee,_ uvcn to (lecL~.o c 'l'hey sm..r no ncoc~ _for tho

with tho disruptive hcha.vi;:-·.ur thoy h:~c1 often c~is~)l<?..ycc! on matters of .~CDC ..

304. ·rhe dov~lo~)in cotmtri::.:s ll~.•:1ct-.locl to tho c~evvl..:,:.~Jcc."c. countri-3s t(o un._:crBt£>.nd

t~10ir si tuc.tiono ·rhcy shcul<.l not com;)e)_ tho clovolo)in:, countries to rovcu,l

tL.oir ~;olicios 0n :~CJC i~1 tho sar,1u :·J;:;..y ns tli.u C~cvclo)in·. countriL-s {~i(}_ not

com~1ol tlw ~~::;c or corJL~COi:·l tc. eli vulc:·o ti1cir :)oliciGs on acricul turc or other

inc:ustrios ..

305. The l:evoloj;lin(; countrivs fol t th~1..t it Nas t:Lc.:.ir OfJn aff:dr e.n~l rosontocl

:::,ny n:ttom~)t by ~1 c:rou:) of countries t,~~ :Jerk th0ir noses in·to th...:ir C"~.ff·:-.,irs • . They ~'lishccl th.:; dov.JlOl-~oc: countries to r0co: .... nise th;:,t ooonoinic co-cj_Jcration in

:Luropc st8.rtoc.1• within tlw rot· ions until i·t expanded. to oth.;r countries o l:.ftcr

e .. ll the Grou:;J of 77 11as bouncl to ro:;_Jort the :)roceodin!._.S of their mootincs to

... , CM/98~(XXXIII)

Pago,l07

:.;h,:ot they 1dshocl tc do ,,;o.s to run their

c·:-.nforoncos on l!CT;C 111i thout interference from tho c"!.cv:;lo~xnl countries on ;:·tho

question of UNCT.Ll.~J boinr..: usod to serVice ox.clusivo (";r·:·UiJ mee·tin~-: s ~ tho G;r:oup o~ ..

77 rcplioc~ that UHc'Tili) v;as s.tc..rta<l for th-3 pur~)oso of economic· devclo})m9nt e.n(~

this .:1pp!L:H.l to tho Thir~ , .. orld Coun"trios o By sorvicin(: mcc-tin, .. s of tho Grou~)

of 77, TJi!crr1).}} liV:::.s not· bxco8din,:;· its munclc.to Vlhich i.s conforrccl ujon it ;)y ·aonorf11

.-.~sscmbly .aosolution : 33/1~'• ...... , r.rhore l:Jas 2. i~.roo..t flG3.l of rigr:12.rclU 011 tho

intcrprot"tion of the; mccnc:o.to of Ul!C'l':~D r::vor r:Jetttors of. c:evclo;.omont until it·

:.;as foui1C:' .. nocc:ss::~ry t"o invito i.hc · UITCT~l.~J Chief Le::c::-:.1 Officer to lii vo 2. l•.)f_:u;l

opinion on tho me.ttcr of the m<..?.nr.'~CJ.to o~ Ul1~CT.:l~U on cc)nforences. Thu Chi,:;f Legal . :·

Officer 2-rl~u.-.::.<1 t_lKJ. t thOro·· ;in~· ~othin:..; illot;al ·if· thG iJ.tJCT ... l.D Socrcto.ria;t sorvicecl

.:-...n dxclusivo con:fotanCc of' thJ Groui_:> t)f 77, once it' h-:ts ·baon sanction.::;C. by :the

hi(~llC-:st boc~ c·f u:,rcT.Aj~ ·such as UI~crrJ' .. ~). V. Ho thour:ht tho- ar(_.u;110nts ~.-u.t forv{c~r~l

by members of. Gron,) B a1~(~ ~ on thO· ~rinc'i:;,Jlc' of tu1iv8rsali ty hc.c:.. nothinc- to c:.o

liJi th lGC.:1-li t,io He s.:.1il.l j it w.:.s U-;? to the ~)UCi)lu in. the. :confarcncc to .::.,~;·roe

and tho UHCT/;.}J :Jecrcte..ri:::.t :·vwull~ a.ct. nccorcJ.inc.lyo

3o6. to

1Pollo~rint th3 le.Mycr' s statement, momhc~s of GrOUlJ D -~nc: IJ su-bj . ..:ctecl him <.

c~ lengthy intorroc:ation to ~,rhiph he c·2.vu \·rhat :1.j))earocl to hz satisfactory . . ' '

After. tho n.dvicc i:loth, · Grou~) B

dcclarccl th. .. :.t (:!,es~?i to _the lugn.l e"l,_vicc their c-:).._Josition to. oxclusi vo m.;:;otings

of th<J Grou;_J Gf 77 hal.::. r~ot ch ... :.ncoclo

Do UNC 1.[1Jij) on a ii'oce.l ·Point for.- :uClJC ' ·'· . '

Grou;_J B c.nd D countriL:S j_Josocl ·.1-n,othor difficult )robler.1 (ru-:::stionini.~ ;I •

vrhotllor or not UHCT1~D .WC!.S tho ri:~ht t.JJ] Ort-slln cdmllVtont to handlo. n.ll mn.ttors I ,

They .:Cj.cl not see tho· ren,pon 'YJhy .,Jffil)hasis shOulc: be l~dCt on .'

UHC·I\~D vhcn othor UH Ore~1.ns coulcl Very \.rell c'!.o tho jol~. They also montionvd G~i.rrr.r - '

308_. Tho Group of '"(7 painte~cl out th"?..t v..lthouch several othor UN Orc;e1.ns ;:~ssist·cd

on matters cf· ·]CJjC.p UI'fGTi~J plo.;tocl n fccc.l rclo. )1'von tho ~3ucretc,ry-GoncrD.l of

the UII hi:l.C~ clesi(· .. -nc.tec:. UUCTJ.~D to ·lih~·~t :)osition an·:~ tho i~c:.OinistrG.tivo· Co-or(:.in~-...tinc:

Committee (AJC) hr~d a.c:roe to the. t focal ro·lo ~~

•

CM/984(XXXIII) Pace 108

309i Thu Group of 77 stater: tlLt ·"-11 lil! Ort;.:ons ha:', their rclo to i)1ay on

~:.·:c:_jc. No .s~nGl8 or{;':::,n should cln.im the prero;~::.:l;.iy:O ·role on Bene.' Others

' .

\-1uro nocdod for co-ordin::J.tin[_~· act;i vi tios. By its :~os·i ~ion, UI!Cl\.:..;J h~(: hn.c: u. c:o ' ...

facto foc,_·~l, rclG on 8.11 mo..ttcrs of d'o~elo~mont.. 'lho c-:.cl)ato on 'Vlhethor to say

11 dorminc·:.nt ;i Hsir_.:nifi'c2~nt ~• '~'key'' "

rolo .tc"k no;;.r1y four hours until it w:ts finany a,:;roG ·th2.t im;.>ort.:mt ro1o

~·should bo correct torminolo[:-j~ to be fpllm•rocl. \ '

l~.. The role of the 1lrus'ha. Pror:rl1mmo. in .. UNCT.Lill

31o., · 'rhe developed couritrios ".-Jere. grce.tly ~1orturbucl by the _J>usha. P~o::;re.rmno··

for collective ·solf-roli.s.nce as outlined en ~)n,c;os _7 - 24o l~lthouch the i<~oc.s

exprcssocl i:h tho procrammG of self-rolianco. ware not nCl!l as they had 1):Jcn

c:Gclarocl ·c.t ·sevor·2,l other fore., tho l·~Gvol6Ped c0untrics intorl:'xi:'ctad tho .. ·Lrusha ,_ '

:Jro{~'r,:Lnnno to be C'.. turninc :,1oint fOr tho. intcrnatioll2-l roln.tions o ~fhon the

C:~ovalopinc countries O.);,~oa.rc:d to hr::.vc c,_GCic:.'"8cl to follm•T an inr.~e~oncl~:mt line for

uconomio clcvolopmont to tho oxclusiorl. of 'th-a i:!.ovclO:·;c~"!. yountrivs .. .' l1s f{tr as the

t:.ovoloiJ...;cl countri~.,;s 1.-.TGro coiwornoc:, th ..... ~usha :::'rocra~mc · vrc:.s l'!.osi[;nud 'Go exclude

thDm from ti1o m.s.rket.s or· tho ·rhir.ri'l-.:orlc. colUltrilJ.? 1_-~G.~:.;.r.c.l~Fio..to' their. 'lT2-nsnatip~.2~l Cor:)or:.>:.tions oper3.tinc in ;:~avo10~1iriC couil.trios i 2.11(~_ most· im~;ortc.ntly ho.d ,:.cl·.:otod

.\n inirilice.l st['..nco .::;.{\;.inst a.ll overtures frob the clov,:;lopcc~ countries. o ":-~ftcr all,

Grour) B :.1.nc~. j) NGr;J Oath awe~ro "thC'..t thoro \·.TD.S suffiCient eccnomic·· infrc.structure

torith:i:n the r11hircl :~orlcl i·Jh~ich 'j_{ !:lobiliZ8d, .. ~coU.ltr cb.siiy ff:iJ.1~)10 .their CCOl10i'11iOS•

If this WE~s >~hat tho Grou;l of 77 sought to accom~i1ish by the .;J>usha ?ror;rammo

of .)8lf-I-ol'i~.nce, they ?.skcclr ;;,rhy 'shoulc.: ill·JC 1rl1.Dp · tcr Hhich they aro mombors 7 be ' '

•

usJC. to fi{.-:ht them? 1!1110.7 ;;·rorc CLch.:Plit unbomforte.ble ~"!.Jout it :.'1.11 and fol t it

th:;ir r0s)onsi 1Jili ty~ to stt.1:, UlTCTa.;) boin, __ · usbcl to ir.QL..:mont a. hostile l)ro,~,rammo •

In !1P .. rtic~L:;.r 7 thoy OPi)osccl vicorouslY. tho ~)rocr,:.:,mmo 0f moo:f;ings tO be canvonocl

by t~:u Uli!C'l' .• IJ Sa~rotarictt by "GhG one!.' cf 1979 for tho Grou;> of 77 as ;)art of

im:)l..;r,1c~1tinr:. the ... ~"'us he Pror_.,r~~mme of Jolf-r~li •. ;.nce~ Tho vro(.:r.:::tn1tlW hal: onvisa. :··orl

thu convunin;· cf four mc,otinr's bcforG t:.w .ond of 1979 as follocrs :-

:.X).;\:·:. \.' .Par_;e 109

1. Hot:;ionel mGotinc.s 2-.n;:."'.. su"'u-re(.;ion;;..l economic co-Vl)Oration ,:;rou:tJint.s

to consiclor <.::cti0n ~:'i:S:...;uursu<:.ncc of the Ifioxico City Proc-ro.mrnc; ·--

of c.le:vnlo~·inc countriOs; .... ... . ..

···•· 3. Three me:;etinr_;·s of covcrnnloni.::.l 7'1x:~Jorts of c!eve:lol'inr~· countries to

examine c..ncl muke })ro~osc:.ls on tho stuC.ics made by tho m-rc·.r.:~:;

mu1 tilP.tcral fina.ncia1 institutions of devclo:Jinc: countries in

inter-country ;Jrojc'cts.

311 o Tho clcvvlo:x~d countrios bolicvocl th\-:t to 2.llm·r these m-..Jctin: s to ~c hold

N.:"ts like commi·vtinc suicicleo ·.ith this in vicrv1 1 they ~wre prc~~~rocl to ~cco:)t ' a resOlution on .GCJJC Hhich ~,;ol,i.lt:. -refer to tho .:irush,'1 Pr.ogrc..rmne in 1Jroacl 3.nc:

VO,LUG terms ··t-lithout cormilittinc thGnlsolvcs ·to· s~>:.:cificso ll,or cxe .. m:·:lv 1 they

1toJ"er8 j):i-G;)c.l..rOl~ to urc~o tho 't.:ovolo:.Kl(l COUlltriCS c:!.nc"!,.- intGrnr~tion,:;:.~ Or(~O..nizr.."ti011S

to ;;rOvit.::o SUi->:. or·t; for ECJJC ~!~)e!"..rin~: in mind tho i~usht~ Plan [~nt its pi'inci~Jlos

::":.n<..: O~Jjocti vos a of ;_~Cl;C t.lii thout nQ.min;:· th.::; intcrn~r.tionC'.-1 crt:-:·.n":J.ize.tions ·conccrhcti..

312. lilollot-rini~· cxt;.:nsi vo :)rossuro fr-:·m th;:) ffroU1) of 77, the c~0vclo~...:cl cGUntries ·

~:~roccl, · in :Jrinci:)lo, th:-:..t the Ul'Jcrr..:..:J Gocrct;;~ri.J.t coulcl ·t:.:ko mJe.survs that >;.i

nvJoUl(: enable tho rl:t .. ion:.:"..l r· r()Ups, :x:.rticul::~rly the l:evulo:)in(, co~tl:'ios, to

· r,rOI)D.ro ·:.f.?~ ·the. 3_,)ociP.l .Session of tho Coii'Uili ttoo on Jc~·Jc. in c.:'..rly 1980 o

'I'h0 .Jcc:r'Gta.rY,-Gonera.l of UNCT .. ~J~ lias· askod to· :;:.ro\ride technioL!.l' oU~):1crt, ocnforc.:noc

. t:•.nC:~ ;)uorot.?.rL"'.t services fOr th:.:; .hc,l::~inc' o.t T.Ji.'.fCT..:...D Hce..clquartcrs in tho four months " ..

prooodine" tho :3;?ocLt1 Scs«ion .::o:•(mdin:: en the tim~ av.:o.il~.lJ1c anc'. tho :>rascnt

schoC.ulG of mectini .s for 1979 .a

313. Brcc,c'.ly, it cculc'. be F"rC;'t.ucl thc•.t tho C!rcup of 77 obtained tho ri,-ht t·o usc ·-'

tho U:.JQTj.J) ;Jecretari,)..t for holC~inG r.lootinrs 011 ~CDC ~Jut it is clear that

vias not l<hat thoy onvis,ll;( od e.t :;rusha.

'

CM/984(XXXIII),

Pace llO

The Uric1erlyinr: Uoti VeS of thG IJovclopad. Countrios1

314. The o.ctual unc"' .. orlyin:.;~ motivc,·c:~. for opposin. measures on ~I:C~:JC v:·oro bn.s0d

..

on thO fbar ·th.::.t the ~:~ovolQ __ Jin{. countrivs Norc c:otormi11Gcl to l)roa.k u~J tics -1:.rith

th: l~Vv~lop'ot: ·cc·untrios. i.JI~y thin .. _·, th::.t ~~~Ji~~ec:!.rs like strcnr;thoning ~hC: position

of tho Grou~) ~f. 77 wo.S rccarclccl as a tb.rcGt to ·Gho intar0stEr _of, th0 d.ovclo~x~J.

cou.."l.·iiri~s. hiost of tho f~c~rs thuy reisGf~ on buinG c_xcluc~uc:. on thO GS'Il) c:.n{!

on thO aims eiu.: cbjoctivos_ of thu Pirst Short Ucr:iumO:.:Tcrm J·.~.ction for Glo"!.)nl

· ?riori ties on ·j:}Cl.JC NOrG o.nsHorec:. on ~>~i.)3 .... 9. - 11 of tho .L·:..ruslw. Pro(:l'O.trtin.:. They

HS'Ull:.' riot n.,·>~r0ss thomsolVos to t118 i(:e<:.'.S C..S GX~lrosscc1 in tho Prol:.Ta:nrno 1

inStea.c~ tht.:y insistet"!. on Nrmtinc to knoti tho motiw:tion for th'' solf-rolinnce

..

315, l'urkoy om,: Atistralia, e.monc th,, countries ;af .GrOUil llr. ~J?liovod that tho

Programme of ~~c.lf-ruli:>.nce t-JC..S nocosst' .. ry :for· the d.9v~~l . .::.•1:ii~?nt of .!:;he Grou:) of 77 countries. ·1l1he·y disa)l~rovoC: ·GhQ hostility_ of the Grc:ui1 B c..nd JJ cou.."l.tri.JS ·~:ho

croc.tod obstnclus by rosocitin,·. io j)rt;coc~ur0~ ~ssuos.

316. On the cthJr h-.:-..ntl, GrrJu:p .;_; countri(;s conco2.lcl! thvir i"il0tivos by al.:.dmin(

·cn~t they su. "'l"·'ortccl tho :.~rincil")lc of solf-rcli?..nco but ·~mro D)~Josoc~ to th...:

Lrushe.. one only 1Jocauso it ,__~i(l n·)t S~)oll :)Ut thu method of cloo.linc ~.ri th. the

rrre:.nsno.tiCln::.l Cor~;orc.tions 1·:hich Vte;ro' ~lunclcrin:.~ tho CC011Cmics of tho

r2.o~olo.L~in(~· countries.

317 ~ 1i.t thv enG. of Hey, only ;lrty bofot;o .tho schc(:u~o time of cni!.in~- tho

Conf.::ronc'-.: uh~n ·t;hc Conforo:1c0 .;.p:,oc.rod t'o h0-VG cOllc:.~-;soc:, :2rCSi(loni 1Iarcos of

thu -1hilliijiJincs co.llcC .. some ro~Jrcsontativos of the Grou~J of 77 :>.n·:!. circulP.tecl

~ onu J)a{~c document onti tlor.~ 11 j)vclarntion by the Group of 77, launchinl. :uanilla

H.oun(: of Tre!.~lo cx~J2.ns ion. ·c.mcn:~- thoi,lo n 'rl1u ciocumvnt roc.J.llcc~ t.tJ.i:j -Colom·~Jo

DccL:~ro.tion, the Mexico City Procrn.Jnmw e.nc,_. tli.c _.·.i.!'usha ?roi:rammc for Colloctivo

CM/984(XXXIII)

PaGe 111

:Jclf-relic.ncv o It rccar;nizol:. thu :::otontie~l for tr~:.tlo cx~:o..nsion ,:l.mone

tluvelopin~:· countri0s :::.m:: c~rcv1 '~~tt:.:.ntion of the Grou~J of 77 rc:)roscntv.tivcs to

tho st~,:~"l).':'..tion in the ucon,Jmios .'Jf tho <:ovolo~1.Jc~ ooun·Gri'~S, inflation .:..nc: tho

r_;ro1rdfit' · pziotuctionism o . . I

1979 nucoti::-,tions C\mon,;

. c. prufcrcnti;:·.l ~Jasis to

It cloc1c,rc>c~ th<j intontion to 1cmnch befc•rc the 0ncc of

c~eve1o ~'in::;· cotmtric.s for tho rGc~uotidn of tariffs on ,. ~-~o t.:allccl Ho.nilla .iloU11t:r.. of ·rr:.1C .. c IkGoti~tions covcrint;

other :;~rc,"!s 9f :;rofcrenti~l traclinc ~-rrrJ.n(_c.monts c.s ic,_entifiec: in tho J_i.rusha

::-ro[:,-ramlJlc of Collective S;:;lf-Lk~lit~cc.

318, :~ Cornmi ttGc of 18 Hem1.:,urs, irli-~h six from each rceion, t'l'oulcl be csta1Jlishoc1

to pre~J::-.re th0 Hules ['..n,L Guiclolincs for tllo no{Jotia·liions: The Committee would

bu ht:'..soc1 in Gunov:::. e..m:~ '(·;roull~. rOCJ.ll0St th~ . .Jccrcte..ry-G..::ncral of UHCT; ... :.J C~,ntl the

;Jircctor-Gt:nor.::.l,Gi~TT to r0nt.cr n.ll assis·ts.ncc to it.

319~ ~O,_;siccent l.farcos assurccc th.o r;'"'r"scnt:>.tivcs of Grou;J 77 of the av.:oi1.c.bili ty

0f func:s to l~unc!1 thu _,_:roj;;;c·t o He sf'l.itl tho,t his country, Int-:.ia., :Jo..uO. .. :rabiE

... -:.ncl 0::.-:'~C countrios Cli.l~ some 8;ym~_;ath.::.:tio clevolo:x~cl couhtrics 1·Iorv -r-'c'n.;·~y to

contri~Jute to thJ ::-roj-:;ct o..n(l ._j:vc tochnic<J,i o.ssist.::.noc 9 .cs~x~cir>.lly in fooc'!.

pror.~uction. L. mo~'Ginr.-: on tho 7:1rojcct could to::'.kc :1lG.oo in Ci-.;neva ~t the

minist,:,rie.1 1ovo1 or moot inc: 0f Grou;) of. T7 \lottlll st1w ~-'<:>llincl after m/CT_,]) V to

vine>.lizo the con'?ept.

320o Th0 itr.mec.:.iat0 r0action 'from tho L.frice.n C:clec~1.tcs \:Jas ~Josi tivc l.;ut c2.utic•us .,:

3ome :;..friC:~n {:eleL,etcs s:.:-.:icl th~t th.::: reaction ;)f the Grouj_) B countricis h['..c: '.. l ' .

forced thom to think ace-in ·?,bout tho utility' of no,;·~tic.tin:· ·at· JHCT, .• .J conforcmco.

It ~·t.:>:.s iim.~ -tll .... devoloj:;in1 countri~s 'i)Ut ihto·~ :pra.ctico their iL:oD.s en multila.toral

co-ope~c.tion. il Grou:.:: Of exportS shoul<'~ cxmaino areas of co-OlJoration 3IIlonc the .. . 1 ..

~~ovt.:lo:_;in~_' oot~''l'liri~s llhich could. ~Jo ini tio.to(i.o ·'lhorc H::ts t'1.lro2.(~y some cOlliQpcr.:!.t-ion

in vb.rious fic..:lds but this ht'.L: net been Hic.lcsprcac:.

321. i..:omo t:elocn.tos ~ru.rncc~ th2..t it t.·wulc~ bo unl'Iiso for tho ...... frican ror_;ion to

oommi t i ts~lf l:.uforo it has exnmincci. tt:<J firi,:moio.l im~Jlicn:'cion, its functic;n or

controlo countries

Tt:hich me.k:..: it im~}e~e.tivo for C:elocat.cs. tc .rei'e;r the... mn.t.tor to their Govc:r:nmonts

i

,,,

..... - ,v.·

Cll/984( XXXIII)

Pac<? 112

1)efore coim-ni ttinr; t_: .. orj~solv:,:;s tn tl10 i.)rojoc.£·-~ It mi('.ht 1Jo n~c9ssar,y to put the

me..tter lJoforo tho :·.Jon-j~li.cn8c~ Confvr;,;nco of I:Iinistcrs R.t Colombo or~·in>-:3_0IJtombor : ····~ ......... __ _.... '

at tho Group of 77 c-:.t iho Gcnorc:.l :.~.ssombly in Hc•Ii Yorko :Jomu c~cleco.tes ·

o"'.Jjco.tcc~. to G.n1ova, beinG USGr:l-~:a,s::·.n.:·:vcinic.,--: ··for::·::t'hc Ccmmitt,~o of 18 b0c~:.uso it had

~lr~~~zy lJC;C!'l ovor-~Jurclcnocl vrith commi ttoGs o They fcl t th·~t it Vl::ulC. lnck

PO:,lJ~~~al im~:,~~ci·t. if {t;. ~lo.s osli .. ·!.blisheL~ in n. ~JurO:i,JCn.n countryo

322. ..~ftGr tt1o G17oUp of 77 hall me;t to c~n1siclor th~s mat,tor, it 1>TD.S clcc{c:oc.

not to .::loot members ·of thu .:GOffiL1li ttoe until c.ft.Jr tho r~I~nistcrs he~cl dcciclccl on

it at one of the m0etiht:s sohu@.uloi:_ this y;.,ar, __

323. , .,T.hG r..lraft nosol~tion on i~C]JC m1s rv.~o.vtod ~jy the: Conf.Jronc~ by conccnsus o

f,lthou::b. that ~ms a lK•<'-1 thy cleci3ion, tho resolution haCL been so cmasculatoc: that

it <2-icl not havG ·the s2.mc teeth ,as i•Jas orit;inally ~~lcill!lod _in {~rushc::.e I,t is

ho_~kHl th -.t c:eoision td c· nvono n. s.:)ucia.l session. of th1) Commi ttoo on :jconcmic

O::_Joro.:tion L'uncmg·. 1Gvolopi:i.1t; Countries early in 1980 v-ra..s ci.n nohiovcmoiit i tsolf '

bccau.su it '-'l1dd.d ~)ass in(. tho '!~'Uck on tht:- st_u_.c~ios 1.u1 ... "..ertrili:on by th-.: U~m·r..~.p SccrctarL-:.t

tht•.t had. prev.iously ::..~Bn .._;usho(~ to the Tro.C::.c r:.n.:.~ ~X:nrolqj;;mo11t BoarG. S.hd: then to

the General .u.ssom1Jly en::.. "b:.1.ck "~tii thout rusults.

324o rrhe e:.;::r8emont by -Grou:) B ::tn~~ ~ oountr'ios th:1..t lfthe ::)ocrotary-Goncral of

UlJCT:~..; shoulc~ ~1rovide· thO· fiG·cossD.ry". -tn.cl.rqJ..g!:l.~ ~U/i:1ort, conforencos and.

Jucroto.ri.-:~t sorvicosa for the hol(;_inr. mcctin~~\S ~t th_o ~I~u.CI.qun.rt-ors was broak-throuch

c.l tliouf~h it is limi toc1 in time.

325. 3imile..rly ·tho acroDlilOnt by tho <~.ovclo:.xJc~· countric's 71 to. oont.r'i~Juto to tho

im)lcmunto.tion. of :;r?joctsa of i~l.."lQ throuch tho Unitce. lJr\tions t.lovole::)mcnt system

VF1S :'.nc.thor o.chiuvcmon·t for tho Grou~1 of' ·77 nc1 otiat<ilrs in vim·.r of tho sus~Jicion

the ~.lovGlOpec"'.. countrius h?..vo in tho J"JCDC :)roc:tnmme o

326 o Tho C..cvolol)inc corm trios co.n m1.sil! break the rosistinco (J.f ·the C1cvc~o~Jccl

countries if 2.n::. v.rhon they t.leoic:.o sel:tiously to :l_mj)lemont tho :1roc-·rammcs on !·lC:UC.

. :':

19

327.

.i"

. . ' ·,

·.; ~ .:;,:

,· ~ .... I• .

•. j

Insti"liutiun<..Ll -Issuos

C!<!/984(XXXIII)

Pa&e 113

.,'

t!w

They fuH ~h"t UNCTLll should. 1)e stronr;ttonocl ancl that Di!CTLJJ should incro<:so

its fl..frican staff,. ·sspocial~y at tho doc.isioiHD.4tking lovul o .]o far on_ly tT;Jo

Africans ho.vo T'(:C1ohod. a cl"ool:sion'":'J.1~Lkirl(; _19:rol 2..t th9_ lJrfc·r ... -;.n 3ocrotc!.ri.:;.t ~·iL.urcns

thoro nrv. mc:-ny· -~-ssucs \·;llich nro of concern tv L.fric6. 'Ghu.t noeclocl tho ~iartici:x1tion

of' .Africans in. tho G.eoision:-mB-ki11::. _:J_,ro_c~ss a In Kl"1artr..1..1i:l lqst year, tl~6 :·Council

of r.H·n,:lst.Grs c:.(1_o·~toLl a rcsolu-Gion co.llinc;· on T .. l":·!"C'I'.l:._: . .) Socrc..:t;;,ry-Gcncra.l to

incrc;::.se tlto 8-j.J ;ointment of tho i:..fric2..ns a.t 2. .f:(l:~i..!;:i . il!.

d.Gcision-mn.kin:::_· lovOl. '(

328. In :\rusho., the Grou;J. of .7T foH· tlKct it >lf.S .ira)urc.tivu for th.c mc.chinory

to be stronct!·~cnGc,__ ill orc~or ·to "be C!.bl..: to co-·or,:inc',to its activities Hitll other

~1c·unci0s of th..; Ul·T 8ys-tom" It ~-1as also fol t tht:~t it. ~fas n::..cossary to >rovit~o

UHCTAD -vri th sufficient roso"!Jrbos .::.n(t spoci~:.l fl;,_;xibili ty in its motllO(l of

ope·ra.-Gi0no ~rho I:.rushC. c.lom.u:"Jont CJ:1)husized UrfC'r1 .. jJ 1 s role in h2.rli1Snizing7

rationalisin._; ;:..n(l co-or(~inetinD its t,.rork in orcl_or tc b-3 offoctive in its offort

to solvo probloHs of <l~volOlJin:· .. ·aulUltricS"

~i:csclution on Institution:.l,l IsSues

.. ' ···~fi"'

Tho :i:'Gsolution 011 Ins-t'itutional Issu0s invitod tho G0n.zral l~ssora~Jly ·to

strone.thon UlTC'l1.L>.D ac"cord.inc; to Hosolutions l995(XIX-) 2.n<: 32/197 .:1nc.l Conforonoc

Hosolu·Gion 90(IV-) recoenizin~·. ·that l.J1.JC 1111t~) l.-.r<.:s o.. ~Jrinci~x.:.l inst:h.lt'nont· vf ·t;>o

Gc.ner~·tl Asser:i~ly for _not:;oti..-~ticns on ro1cv2-nt 2-roc.s. of internatiOnal• tro,c~c

aD;C .. rGlovr .. nt issues" -·.'f..:_.

The rosolut1on r:-oaffirmecl. -Gh2..t tho Docrotn.ry-Gcncral of

UNCTL.D should consult roL7ione.l crOU~~s before nor.1inD.tini_, :x1.rt·ici~)n.tinc coun.tries

to croups of r,ovorru11011tal Dxports of ros·trictoc.: numbars.

CM/984(XXXIII) Page 114

330 t ,._y~~~.ler the S.'11~1o rosOlut ion, an a<l hoc ~nter::3·0V ~rnr;~ont,::-..1 Co:~1rai ttoc of lili1i toe~

, (:~~a.~ion_ sh~;~i'O. 1Jo eSt~bli·sh~:C: :to cO:riS-i(lGr.' tho·.:·r~tion-.::;li:Z.D.t:i.on of Ui-T~.-~..:~D i~lr:W~lincryc . . . /. . .

Tho same 2.c.:. hoc Cor,1mi ttc::O t·JO'Ltl:::!. conS'ic:Or ··n nuri·1.1er of issu..::s lis tee~- in tho

rosoluti<)ns. The C0iifcro·nco asked for ·-consultc.·!:;ior.s bct1r/0011. the ;:rocrote,ry-Guncrc;l

.of UHOT:.D am: the UH S~crot:.;ry-Goncr-"1 ccncr3rninc :_:rcder f1cxi bi1i ty for UUC'J'l.D

in buQccto..ry 7 fin.S.ncii2.l · c:~nc-:. 2.CJ11i11is-trativ:..: matters-~ One .s11;bjdct of those consul tn­

~ions ~Joule~ be UITCT.,-liJ-1 S r0S:i)Ollsi hili tY. for r..::ci'ui tr.1cnt c~n(_ c.cl:linistr::J:tion of

J?te..ff to e..c~1iove a.moriu! ·c~thcrs, an im~..'rovor.wnt ·in thv re:)rosentntion of unc.ler­

:rcprescntol~ . .' countri~s ~-: (_'sl.,oci::.lly tho c:e\iolo:.,il1f- countrios, j)O.rticularly et tho

1;6licy-mn.kinr: luvolS o Tho Conforvnc•) also in.v:i:tcc~· th>J TJ.HCTAD' s technical assistance

~.t..ctivi ties .:t.nt1. their financial·· coinmi traon"t c.nc: ·to -:..::nsuro tll,_-~:t rct}-:Llnr consul tat ions

a.re held bCltVJoen the UIJC·J\;.l) JGorct::·.rit:~t e .. nd the _rot,ion,'.l ;jrou::)s o

Institu:tio'nal Issuosj Uso vf th;:; .• \rrr~)ic Ln.nr.)Ua;;es

I~osolution· rl1D/L.l7i Al~cl.l

33l •.. l'he Conference g.lso r:.cloptecl ~~ rosolutiun on tho Instittttione .. l Issues t·1hfch

concernocl the use of th~ )l..ra'bic l<in:_:uB.te a:t. ·1Ji-TC 1.C .. J.~J Confc~-micos o IJ.1he resolution

roooramonclec1 th:J.t the G0nural ..::·,_ss..::mbly shoulcl- anscrc- at th8 1Ihirty-Fourth Session

tha~ -il.rabic 't-JOV.ll.. h·:tvc full c,:,~pc1ci ty E'.S o.n officictl anc1_ ~-Jorkin:; lc.n:...uacv of

m~cT~:i:D Ni th ruspect to 1)oth · i:at~r~)rctation r..n(.-:. tr2..11slaiion f;;:.cili tics at ~)a,r

v.ri th other la.ncua.t_~·os. It r.oquos~cd tho Soorota.ry-dcnor~o..l of UlJCTlill to •Jnsuro

th1..1t tho rocommond::::ttions formccl i1e.rt of his i-cpor·t on illJC.r.t-J.:O 1J t·o tho Goncr['..l •

..:issemblyo

332. Tho S8crot::.ry-Gon.Jral of UiJC'fi~U is th subGli t cost c:.stimc.tos 011 thiS

matt;,r to tho noxt ils"~or.1bl;y Session. Estim::.tG~l staff cqsts for 1978/79 fer

lirabic interpretation, ·tro.nsl8.-Gion 7 ty~)il1~.:~ i.1n(::_ ro:)roc-:.uotion n.m6unt to

~)3,392,000.

' ~-..

.. · .•

'. -. -,_' '-.'t; _. ~·

Iten1 20

\ ANY OTHER BUSINESS

. , ·several decisions w'ere ·ta_l.cen

>

tinder item

Cl~/984(XXXHI)

Pace 115

20, These

decisions eman~~ted f'ror:a subjeCt.s l-Jhic}?. had not been included

334· The subjec-ts' U:TI.der this· item 111ere sent to _the plenary

f'or coris.ideration either because thay bad failed to g~in con-·

censu::; ·in the negotiating groups such as on the question of

Liberciti,;n Movements, and that 1<hich requestec:.all States to

refrain from introducing national legislation on .. the exploita­

tion of the sea-bed, studies on the ,tra."lsport costs t.o ·Zaire

or the one which w·ent straight to the plenary as in 'the ease

•

... of-appealing fqr special assistance for·Dji:b2uti and Tonga a:J.d

the call: b; .ci~ve.lo'pi;(i'. cb,_i:;;trie"Ei-"(o' .e:;r'nnina t'e d'Lscriminat ory pra-. ,, " '

ctice$: in transpo~-t; ··b·~-rikill-g_~·:_~llCi' ·insurru.1.ces ..

DECISION ON THE EXPLOITATION OF SEA-BED RESOURCES

335· UNCTAD V adopted Resolution TD/L.159 agnin.st §illY attempt·

by individual natior;s to ado;;:rt~ unilateral legislation perrnitting

tho mining ()f' the G.eep sea-bed .... The resolution requ0sted all

stateS to refrain :fr.om adopting such legislation until an inte:c­

national regime I~or tpe area I•Tas adopted by the ·Tl'J.ird United

Nations Conference on the Law of tho Sea. It stated that

unilateral action 1voulC. not be recog·~ised by the i!lternational

com~uhity ~nd \"Tould be n:ull.: and void accor-;:1ing to the~ i:;:1t erna­

tional lm•.

336. UNCTAD V warnec that states ~vhich might ta.l<e' such

unilateral actions 1-rould hav~3 tc assume ·the responsibility for

their consequences both with respect to their impact on th,e ur; Conference on the Law ot' the Sea and with regard to the negvtia­

tions on c.ommodities related to the exploitation of mineral

resourceo of the sea-l?edo (Cobalt, copper, manganese and nickel

are the main minerals expect(j)d to be recovered f'ro.m sea bed

mining once it begins).

;:·

., :. · .... CK/984(XXXIII)

Page 116 ' ~ :

337. . . The Hesolution ''as opposed mainly by countries of Group '

B ''''o vote<;l against :rtiand e:J<:plai~ed that they had opposed a

similar ¢\raft resolution in the TraG.e and Development B«:>a:r:d in

Septecii:i~·~'; l97i;." .Other riJE>P11'lers· ~f Group B abstained

had done' ;0--;;;~~~,;se."tlie m6:t~er<,:,.as and ex-

_plained that they . ::-. ; " . '_. the Lm> of. 'thEi"Sea·· Conference.·

. '"

one for

Austria and New Zealand stated

.that they agreed :::i.'n gener.al.with .the substance of the resolution.

Finland arid Norway said they voted for the res.olutiori because

they ~;e~e e.gai~$t any unilateral'sea~becl legisi:atio.;;,. Ojinada

which abstained ,claimed that she did not support' unilateral

exploitation'· .. o':f.'.:.ihe sea-bed in the absence of a Treaty. Switzerland . ' . . . -. .,.~;·;.:~

said that ·she .. v.ot ecl fq_:(.•;i,f< without ·.;_~·~Gssri:rr'ty- supporting all the ide,as in. the resolution~ ·-.... ~ , .i; .. . , .... ~~., ..... ·.... . ..

i ··- ... ·i.;

338. Group D voted :for the Resolution and stated that a_qy

unilateral action in this. area would be' ina(jrnissibl.e and a

,Yf?lation of UN Re.~olutions. Results· of the, vote adopted by

role-call was ·~ 07 - 9 ·- 13.

339 •.

,, '

'•"·· -;,.

• ASSISTANCE TO THE. LIBERATION .!40VE!JJENTS - Resci!hf:i.on TD/L. 162

The ConferencG_requestod the Secretary General of UNCTAD ... to initiate economic studies within· the comnetence of' UNCTAD with . . .~ .

·;r:.e,spect to the peoples of Namibia, PaJ.,estine.1 South Africa and

Zimbabwe who are s'till -living under colo!lial domination or foreign

occupation, The studies would be conducted iu collaboration with

their respective liberation movements recognized by the' regional .. . c

or ,inter-governmental organizations.. Tne Secretary General of , ;~' ' '. . .

UtW''l'l\.D ~tas~:'expected to report periodically .. tp. the Trade and . . . . ~ ... ,Dev,elopment Boa:J?d on the. results o'f the ~ t:J.di-C so ·. ,:·· .... , ..

340. The Resolution was· opposed by the EEC 1-rho claimed that ... ·they -deplored :for:dgn subject·s to UHCTAD baing ·intro'cluced t"" the

-·" ... . l... ,.. . . . . . . ·, . . . C9~_f_erence.. Isra~J.:· .opp~s@d it clai..Iflil?-g it ~had been politically

inspired.

similar !Jbjocti.ons as countries of Group B saying t:!:la't it raised

polit:i,.cal =i:~-sv.~S at an· economic conference. Other ·three members.

of the· Latin American regions voted for.it while protesting about ·- . . . . . the-way it l{nkod peoples ti.J1der colonial domination with foreign

occupation.

.,

. . } . . ·'·· ) .. . : .. ·. \ ..

._:_I . ' ' .,

·':··;·.: -I . ;j< ;~;;_

CM/984(XXXIII) Page 117 •

' '' 34lo

' Pal<'f'stine·-•. - ; :·. ··.· . '

The voto:S. ado-pted by roil:.:call ~ere 91 - 16 - g, . . . ' ·,

RESOtUTION TD/L.1)6

343. UNCTAD V invitect·-the UNCTAD Secretariat together ldth the

.ECA· to study Zaire Is ·p_robiems of' tr8nsport ~ tra~sit_ and access to

·-:foreign 1market s and·' 'fue'asures to -reduce tho high transport costs·

of its :foreig-n tradeo The resolution was adopted by concensus.

' ECONOMIC SITUATION OFDJIBOU';"I AND 'T'ONGA-

RESOLUTION ON TONGA·- TD/L.165 AND RESOLUTION

ON DJIBOUTI - TD/L.1G1

344 8 The Con:fere!1.Ce appea9..ed to th0 UN I-1er.lbGrs to pl"ovide I

· -Dj.i.bOut~ -and Tonga with·· financial·, t8cl:u1ical~ and economic assistance

they ne0cl to ovarcome ·their serious economic dif'f'iculties., The

two resOlutions recommended that these -countries be incluc!ed in ' the UN list of the LDCs·. This would enti-tle then to 'special

consideration for varioUs m~ aid program~es.

345• -The votes for these resolutions were: Tonga 85 - 0 - 20

and the resolution on -Djibouti l·TaS 88 - 0 - 20; Group· B said

its members had abstained because only the Ge.neral Assembly could f

determine whether or not a member qualif'ie'cl' f'or LDC status ..

Group D believed that the resOlution'''Was a recommendation t6 the

appropriate bodies with regard to the LDC ste.tus.

}'ROTECTIONISH IN TRANSPORT, BANKING AND INSURANCE -

RESOLUTION i'D/L.168

346, UNCTAD V calle'cl on the c1cv·elopecl c·otirrtrios-'.to 'eliminate

all discriminatory and U'nfa:ir'-pract:ices ·in •the ~or'i±6es 'sector,

and- in' particui,;.r- i.n tr;;nl3pcirt; 'banki:iJ:g: 'and ::rri:Sur<i."-ce ,: used against ' .. >'

the- devel;p~ng c6imtries. '' Th&. re~dluti,ori · §.tated .'tna:t· par.ticular '

.. ·~ ' .....

CM/984(XXXIII)

Pn.ge 118

attention ought to be giV,£::tl:,.t.9,:,the practice whereby two developed

coQ~tries would have to make exclusive arrangements on passenger

air :fares. The :F.asD.JJ:rl::bon:··regu,e&'ted the UNCTAD Secretary General . . .... _ .... __

to analyse the effects 6:P-:..;thfi..:..<liBcriminatory and u.a.'""lfair civil

aviation practices employed by the developad countries on the

growth of air tr=sport, includitJ.g ... ;:;,i:r;'_ H/~-F.?:.9.:;and tourism in

developing .couni;;ries._

.... • 34'7· Group B said its members voted against or abstained on the

·:resolutii:m on procedur~l grounds as tho- International Civil

Av:i.,;,_-tion Org&-.'J.is~ti-on (ICAO) was the appropriate :forum for

civil avi'ation ,;atter·s. There was no need to oppose the

re~olution in subst?nce,,

' ~ . ' ··'· -·; .,

348.. Group D said t.he :resolution did not apply to their

co_untries most of: -:vh.ose airlines operated C.i::'f'erently :f:rom those

ot: othe_r cou.."ltries.

"

The resolution '1-ras adopted by ro_ll-call of 91 - 23 - 1. • ,.· -·' II!' " 349·

Only Turkey from Group B abstained.

VENUE OF UNCTAD vr- ·

350. By Resolution TD/L.160/Rev.2, the Conference requested ti1e

Trade and Development Board -to recomme>'ld to the United_ Nations

General Asnembl.Y, to decide on the venue of: the 6th UNCTAD taking

into account .. :the- offer made by the Govern.'llent of the Republic of

Cuba.

'.

' '

-· ' ..

. : .. - .-! ..

a) SpeCific plcQges:

1 ... Austria

. '-

3 • Finln.!1Cl

•·

CM/984(XXXIII) '/'". .

!Unrux f'

-'

at UfJC] AD .V ~ ' ..

\

Volui1t11ry contri bufion for· US$ 2

mil;Lion to ·tb.o second t·Tinio~r.

117 million E?lgian fr~c2 or

"-P:Proximately US$ 3.5 milli_on

to tha firot uinC.ow.

'proporcd to malcc 8. volunta.ry

contribution to tho second winclo1.v

111hich could amount to around

100 million BGlgi~i francs,, or

P.pproximn;toly -DS$3 _millie!'•

aHc a.r0 i.)ropc.rc:l to contribute

our sharo to the finc:mCf:Ul ~o­sourcos of tho first Nind.ow11

:- ., "R_oa_cy to make a -.ccntri buticm up ' .. ' ,. - ·:·:.···· .

- : .. to two million c:ollars to the

secoiul. winder: of the; Fun;J_ in

accordance with n. procjedure to be.

agreocl11•

"!'·

"pledge tho amou."Jt 'of US$ i million

for tho "sccon~ wi,1dot;;"·· In effect

this maans Ma.J.eysic..'s contribution

to the second window 1-1ill bo

US$- 1 1467 7000."

•

';,'

5· liorwcy : ''-, ~ ~: I ::•

..... ·'

.n

'' ; ./ t:

,\I,

.(

... )

6. 'P.hillippines

7• Sweden

. . , ...

8. · Yugoslavia

9• !!fetherlands

10. •. nenmark

ll. Indonesia

12. Tlu1iiimd.

13. India

v~'!/ ;.;I.J.:t ,x . .t~.x:r:t:c) Jlnnex I

Po.ge 2

Reconforms plodge of US$25 million

t{(.iho Fund.· ''decided 0Ghat tho

e.mount cX6eod.inc our m&"1J.C~.tory

contributio~1 to thv first lrlind.o\-r .... i~ - . ..

sha;iilcroo··&'lvCl1" ·;o;s a voluntary

contribution to .the second wind01;

of tho fund. 'rhus th0 major part

of our pledge of 25 million dollars

some 22 million clollars 1 t'lill bo

chann.Jll.eG. into the second ,.Jindow. 11

:1pledgo to allocate ·to th0 second

25 million dollars out of the 50

milli.on dollars pledged by tho

Ph1illippinos~1 •

Around US$5.5 million voltu1tary

contribution· to the second >Jindow

in addition to US$0.5 million

allocated from $1 million of equal

contribu·Gion •

a~·lo ,.Til,l sta."l.d :reo..d.y· to COllSid.or to

. participate in roplensbrmmt if needed

n-:aeconforiJl -the financial support

in thG amonnt of US$30 million

xl/3 ccolbrs announced at illJC'.i:AJ) IV.

Ou·t; of ·[;his rimount an allotment

\'l'ill be made to ·hhe second lr>Tindow11 •

pledge US$17 million.

pledgo U:S$2· .~ 3 million.

" II 1,ooo,ooo.

" " 1,ooo,ooo.

" u us::t;s million o

CI1/984(XXXIII) . ·; ... .iii'lnex I

c}, ;' ., •J • ~ ••

Tliis ~a.kc·s th8 ~;;;;jci,i; pledged fun over US$80 million out of the \ ~·· '· US$3'5 ~i,llion required fci:i:-: the second >IindoW o

,• ,.,

2. Canada·. '· J

3. Fed:. Rep·. of Germany

4• Ireland

5· Japan

.-. "will bo fully supporting ·oho first

window's opc:;. ... ations •••• we will moka

:m cffoc-ti v0 oontri but ion ·to (the :~ i - '

Socond wi~dow)a.

11vJill at an ·appropriate stage be

proparGd to mcl<:o c.. volm1tn.ry contri­

bution to ·!;l~.c Fund.' s second window,

including a porti.'on of the one million

dollar equal assessment H •

"1vill fulfil cur finc.noial obligations

towarcls the J:i'uncP1• "'ready to mn.ko nn

appropriate voluntary contribution to

.tho scconCw windotla.

~'~has dcciclecl, in principle:., to join

others ii1 marking o, volu.'1tary con­

tribution Hhich cmuld of course be in

add.ition to'such portion of our con'-

tribution of o11a !Jlillion dollars as

>10 would propose to allocate to thnt

windov1".

"'ready to give a,n C!!'lequate runount in

voluntary con·Gributions to the sucond

plGdgccl .to cont,.ibutG to tho second

window. on the last da;y of the

conference. ~ ' . '

7• Luxobourg

- -8. Mex±-co

9• ilopublic .o£ Korea.·

10. Switzcrlru1d

11. United lirab Emirates

12. Venezuela···

13. OPEC -

. CM(9,84(;:<xiii) lilll1.0X I

Page 4

"Th0 government proposes to provide

(the second Hindow) with a substantial

contribution to \vhi.ch ..,1ill be aclc.led

part of t.h.o Funds comL""tt?; from our

uniform ~Qontribution11 .,

· '!-t<Ti"11ing~·to. ma...~c a · sub~tiaL

voluntary contribution to this ., .. ii~~':t"i tution ''.

"will contribute its due share in

orde r to cxp'cditc the es·~c.blishmont

of the Fu11.d11•

11\'Ji11 make an appropriate and sub­'i

st.nntia.l. vol'Lmtu.ry contribution ·i;o .. . .. *"~ -·· 0 ••• { .:. ~·t.

tho second windm..-11•

"readiness to Contribute to (the

Common fund) t~roueh the. OPEC

.- a\·Iil1ing to contribute; through the

OPEC Special F\u1d, specia~ resources

t<:> ·tho· second. ;-;in.dow of the Common r, ,.r;: . ]\md. Venezuela viill in due time,

in ao~cemont ~1i th the other OPEC coun­

. t~ies, announce the amount of its

contributionn ..

-~1rca.dy ·co provide , - th~~U€11 ·the - OPEC

Special Fund fin?~ncial SU:J:":lport to the

w.n.st.: Doy~l,.oped countries in order to

enable them, _if' they so. wish, to moot

the_ cqu~l share of their contribution

to the Common Fu..i'ldH.

'·· •·. ;·"<

CM/984(XXXIII) .... , ANNEX II ~

,_ .. '·

.. ...... . . . ....v 1 .' .. :~·. iumox II

" ' . ~

';.':: ' .. :~·:..: ·-·· . ,.· ... ·. c~

,, :.

·~larking G~~up on !ntb'rnatiqrial

Shippi;1g. Lii/;islat:i'o1i;· ;.s:i~th . ··session

IPC United. H.:1tions Conference

on Natural lffibor 1 'third Session

IPC - Second Inforgovornmental · ·

Grol).p 011 Ex:ports ·011 Copper .... ·.-.

Vnitod Nations Cocoa Conference, -i·

1979 So_cond part

IPC - Interim Committee of thG . . ' .

Uni 'Gctl Nntions I'legotiu:Cing

Confei:-ence on a Commo·n·' Fund und.or

the Integrated Pro'gramme for . ' Commod~tios;_ ffrst~ session

Consultations -on tho Dni ted

Hations ConferE)nce on . ' .)

Restrictive Business Practices

_Preparatory !>looting on 'I'Ull{:;s'oon 1

Second session

IPC - -Fourth Preparatory J.~oo'Ging

on:· Cotton e..nd Yctr'll.S

'· .. ld - 22 Juno ( u:ntil 29 -June if

required)

25 Juno - 13 July

25 Jun~ -· is July ·

* 16 July - 3 August :·. :r .. ·.·.

3 - 14 Septombo~

2 da,ys in 1;eck

17 - 21 September

~ 1 7" - 21 September

17- 21 S0ptembor

* Date to bo confirmed after consultation to be hold in the week

11 JU-'.1C 1979'

-.~

\

Preparatory r1oeting for tP-13 United

Nations Con::'erenne on a Cod.e of

Co,Flu<.r'a; on tho '.l.'ra.nsf'e::r of

!PcC--: ,.9.~.venth Preparatory Meeting \..- ... ~ .::0' - I

on Copper

IPC - Intorgovernmental Group of

Experts on 'rea, Second session • J. \ f" :. ,.. . ·-~ . . .. '

·{forkii"Ig 'Party 61i t'li'e · Progr~c ... .. i~*--

Bud~et and Mediuffi-terin Plan

IPC Second Preparatory Meeting

on Meat

IPC Second Preparatory N:eeting

on.. Tea.

IPC - Third Proparatory Meeting

on Vegot~ble Oils and oil seeds

Trade .:>..nd Devol:~·i~!!J?tJ/iic ;Bogr~ _,

t•finetee:nt.h session. first part

:;:";?(; .. _- Fifth Prv~ara:tory Mce'ti'!:l.f$

::..:•-· 'l~opical 'I - 111oor

t)NClJ.;AD/UNIDO Group of Ex:parts on

the Trado and related aspects of

industrial collaboration

(Board decision 172(XVII1:)

Page 2

24 .- 28 September

24 - 28 September .,-

24 - 28 Scptot:1ber

1

1_· .- 5 October

1 :- 5 October

3 - 12 October

8 - 19 October

15 - 19 October

22 - 26 October

** To considl3r the detailed programme budget for :~he bicnniwn

1980 - 1981 ..

IPC- Interim Committee of the

United Nations Negotiating

Conference on a Common Fund under

the Integrated Prog:r~mmc for

Commodities,- Sccortd·-~sc"ssi-on ·

IPC - Post-Preparatory Meeting

on Jute and Jute Products

United Nations Conference on a

Code of Conduct · on t!:o rl'rl\l.l'lsf.er.

of Tech.,'lology, second session

United Nations Conferbncc .. on .a·-

· convention on International

Nultirnod3l Transport

' United Nations Conferonce on

Res;trictive Bu.sif?.cs.::: Practiccz

Gror'..p of high-le vel export s on

.special ri:e~::;ures for the least

developed countries during the

1980s (Board resolution 17l(XVIII) • ... : •• • .... '!' •

!PC - Interim Cornmi. ttee of ·t;he

United Nations Negotiating

Conference on a Common Ftmd under ..

the Intcgrat~ii ·Pr6e;rn.;lime r~r Commodities, third ~ession

CM/984(XXXIII) Annex II

Page 3

22 - 26 October (until 2 Novemb<::r.

if requj,r.::d)

29 October - 2 November

***" 29 October - 16 Novumber

. ~~**'' 12 - 30 November-· - -

***' . 19. 1Jovernber - 7 December

·26 - 39 · November

"'"r .. • ~· ,

3 :. ·r4 neoembcr

*** Date to bo confirmed at . consul·l;n;tions 4.i o be;'held ·m1der

Board decision l43(XVI).

IPC- United Nations Negotiating

Conference en a Common Fund 1l1<dor

the Integrated Programme for

Commodities, fourth session

IPC - jld hoc Intergovernmental

Cor3mi tteo 1 ninth ses sian

2 :,.;:>,ys in tho week

17 - 21 December

CM/984( XXXIII) llnnex fr Page 4

Meetings under the; rcgu].a.t programme. for which dates are

still to be determined

Committee on Invisibles m1d Fi~nnQing related to Trade 1

ninth session (at technical levGl)

Committee on Tungsten 1 twGlfth session (if required)

U:ri:bed £lations Confercmco on Tugsten (if required)

Uri ted Hat ions Conference to. r!egotiatG · a.'l IntGrn<!tional

ilrra.tlc"'ment to replace tho Intor;ntional Hheat ilgreement

1971 1 as extended, fourth p2xt

'!larking parties, study groups and export groups (as reqUired

up to l~ weeks)

~!eatings rmclor the Intosreted ?rog~o.mme for Commodi tics

for 11hieh datos arG still to be clotorminod

Preparatory f;leetine on BD.l18Jlas

Preper::-.:t;ory l1Ie0"ting on Ba.uxi te

Second Preparatory l~eeting on Manganese

Third Preparatory ~!eeting on Iron Ore

Third Preparatory I'leeting on Phosphates (if required)

Fourth Preparatory Meeting on Hard Fibres

crther mGctings undGr thG Integrated Programme for Commodi tics

(up to 8 weeks).

AFRICAN UNION UNION AFRICAINE

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Organs Council of Ministers & Executive Council Collection

1979-07

Report of the Secretary-General on the

Fifth United Nations Conference on

Trade and Development

Organization of African Unity

African Union

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