IV. Economic Questions 1cdn.un.org/unyearbook/yun/chapter_pdf/1948-49YUN/1948-49... · 2014. 12....

IV. Economic Questions1

A. ECONOMIC DEVELOPMENT OF UNDER-DEVELOPED AREAS

In its report (A/625) to the third session ofthe General Assembly, which opened in September1948, the Economic and Social Council reviewedthe action which it had taken with respect to theeconomic development of under-developed areas.

At the Council's request, the Economic and Em-ployment Commission had submitted to the Coun-cil's seventh session a report on the most appro-priate form of international action to bring abouta better use of the world's resources in order toraise living standards, particularly in under-devel-oped areas. The Council had suggested that theCommission make more specific recommendationsand make further studies, so as to define the cen-tral problems of economic development and theways of dealing with them.

Acting on the General Assembly's resolution52(1) of December 1946, which had referred toit the study of the question of providing ways andmeans of furnishing expert advice to under-devel-oped Member nations, the Council had instructedthe Secretary-General, in close co-operation withthe specialized agencies, to establish the necessarymachinery in the Secretariat for providing expertadvice (51 (IV)). Under this resolution, the Gov-ernment of Haiti had requested assistance, and acomprehensive mission was approved in July 1948and proceeded to Haiti in October 1948.2 TheCouncil had also, at its seventh session, informedMember States requiring expert assistance thatthey might call upon the Secretary-General to or-ganize international teams of experts provided by,or through, the United Nations and the specializedagencies.

The Council had noted with satisfaction thestatement made by the officials of the InternationalBank for Reconstruction and Development to theeffect that, other sources of financing now beingavailable for a substantial part of reconstructionneeds, the Bank was contemplating paying moreattention to the problems of development here-after. The Council had expressed the hope thatthe Bank would take immediate steps to expeditethe examinations of these problems and wouldadopt all reasonable measures to facilitate the early

realization of development loans, particularly thosein areas economically under-developed (167 (VII)E).

1. Consideration by the GeneralAssembly at its Third Regular Session

The part of the Council's report (A/625) deal-ing with economic development (Chapter II, Eco-nomic Questions) was considered during the Gen-eral Assembly's third session, at the 58th to 70th,77th, 78th, 80th, 82nd and 83rd meetings of theSecond Committee, and at the 170th plenary meet-ing of the General Assembly on 4 December 1948.

In the Committee's general debate, at its 58th to64th meetings, there was general agreement thatprimary responsibility for measures of economicreconstruction and development must lie with theindividual countries concerned. It was furtheragreed that such measures could receive addedimpetus from foreign assistance on appropriateterms.

The representative of China, supported by therepresentatives of Argentina, Egypt, Haiti, India,

1 For further information, see:Official Records of the General Assembly for its third

session (Part I) and fourth session, including summaryrecords of plenary meetings (separate vols. coveringmeetings 136 to 187, 220 to 276, and separate annex toeach vol.) and summary records of meetings of theSecond (Economic and Financial) Committee (separatevols. covering meetings 56 to 85, 86 to 116, and separateannex to each vol.), summary records of meetings of theFifth (Administrative and Budgetary) Committee (sep-arate vols. covering meetings 104 to 178, 184 to 234, andseparate annex to each vol.), summary records of meet-ings of the Joint Second and Third Committee (separatevols. covering meetings 25 to 39, 40 to 44, and separateannex to each vol.).

Official Records of the Economic and Social Council,fourth year, eighth session (meetings 226 to 82) andSupplement No. 1. Resolutions, and ninth session (meet-ings 283 to 343) and Supplement No. 1. Resolutions.

See also, in connexion with particular questions, pub-lications and documents referred to in text (e.g., reportsof the functional and regional commissions, reports ofthe Secretary-General, and United Nations publications).

2 For further details of the Mission, see pp. 438-39. Fordetails on Economic Development of Under-DevelopedAreas for the period up to September 1948, see Year-book of the United Nations, 1947-48, pp. 515-20.

Economic Questions 433

Mexico, the Philippines, Uruguay and Venezuela,held that the Council had failed to attach sufficientimportance to the economically under-developedareas. The representative of the United Statespointed out that economic reconstruction and de-velopment was a primary objective of the UnitedNations, and that certain of the specialized agen-cies had given those countries considerable tech-nical and advisory as well as financial assistance.However, he felt the most hopeful and importantthing was that many nations themselves had in-creased their efforts to improve their own economicsituation.

Commenting on the assistance granted by theInternational Bank for Reconstruction and Devel-opment to under-developed countries, the repre-sentative of the Philippines stated that, if the as-sistance were to be effective, the Bank must grantlarge loans liberally and speedily, and suggestedthat more attention should be given to the ques-tion of whether it would be possible to ask theBank to finance plans for the advancement of un-der-developed countries. The representative ofColombia held that the excessive formalities re-quired by the Bank tended to discourage requestsfor loans, and expressed the hope that the problemof financing would be studied by the Economicand Social Council. Several representatives ex-pressed the hope that the Bank would give moreattention than in the past to the needs of under-developed countries.

The representative of the USSR held that theBank was carrying out a policy of discriminationagainst some of its members, particularly EasternEuropean members, and that political factorsrather than business considerations were determin-ing its action. He also claimed that the Councilwas acting against the interests of the economicallyunder-developed countries and countries which hadsuffered as a result of war and occupation. Thiswas confirmed, he stated, by the fact that theGeneva and Havana Conferences on Trade andEmployment, which had been conducted with theCouncil's assistance, had taken place under condi-tions of inadmissible pressure on the part of certainGreat Powers and their supporters, and that theCharter was unfair to the smaller countries onquestions of tariff policy and imports. Moreover,it furthered the interests of the larger countries andimposed a regime of discrimination towards non-members of ITO, thus undermining the futuredevelopment of trade and possibly leading to itsgeneral reduction.

The representative of Brazil considered that aplan for technical assistance to under-developedcountries should be worked out, similar to that

which had been developed in connexion with so-cial welfare. The representatives of Egypt, Iraq,New Zealand and the United Kingdom alsostressed the importance of expert assistance toMember Governments. It was also emphasized thatassistance should be on a purely technical basis andshould not involve any interference in the countriesconcerned.

a. SECOND COMMITTEE'S DISCUSSIONSON ECONOMIC DEVELOPMENT

Following the general debate, the Peruvian rep-resentative, at the 65th meeting on 26 October1948, submitted a draft resolution (A/C.2/126)requesting the Secretary-General to prepare as soonas practicable:

(a) A report on current trends in world investment,both public and private; and

(b) A report on the fiscal policies of Member Gov-ernments, and on ways in which these policies might beco-ordinated.

The resolution was revised at the next meeting(A/C.2/126/Rev.l) to take account of pointsmade at the Committee's 65th meeting.

The Peruvian representative explained that hisdraft resolution was aimed at enlarging the field ofthe Secretariat's economic studies to give the Coun-cil a broader view of the economic problem, sothat it would be in a position to find ways andmeans of removing obstacles to a wider investmentpolicy to assist under-developed countries.

The representative of Egypt, however, whilerecognizing that under-developed countries neededhelp in the form of capital and technical assistanceto ensure their economic development, felt thatcapital investments were perhaps the most danger-ous form that assistance could take, as they repre-sented an effective weapon whereby strong Powerscould seek to attain political and economic domi-nation.

After a short discussion, during which the Com-mittee was informed that the reports suggested inthe draft resolution already formed part of theSecretariat's programme of work under variousresolutions of the Economic and Social Council andits subsidiary organs, the representative of Peruwithdrew his resolution in favour of one submittedby Norway (A/C.2/132, and Rev.l and Rev.l/-Corr.l). The latter requested the Council, "inplanning its work programme for future sessions,to continue to give due consideration to the prob-lem of economic development of under-developedcountries, in its different aspects," and drew theCouncil's attention to the draft resolutions sub-mitted by Peru, Iraq and Haiti.

The draft resolution submitted by Haiti (A/C.2/-

434 Yearbook of the United Nations

131 and Rev.l) called for economic co-operationamong the under-developed countries, and author-ized the Secretary-General to include funds in his1949 budget to enable qualified young personsfrom these areas to study in the world's centres oftraining for apprentices and technical workers.

The draft resolution submitted by Iraq (A/C.2/-130 and Corr.1) asked for urgent attention andcollective efforts to alleviate the low standard ofliving in some Member countries. The repre-sentatives of Egypt, Pakistan, Colombia and theUSSR considered that, so far, the United Nationshad devoted most of its attention to that group ofcountries which had been directly involved in therecent war. They felt that countries which hadonly indirectly suffered from the war and whichhad a low standard of living, also had the right toeconomic assistance.

While some representatives stated that they didnot agree that the problems of under-developmenthad been disregarded, it was generally agreed thatthe problem was of major importance and meritedserious consideration on the part of the UnitedNations, and particularly of the Economic and So-cial Council. The majority felt that economic de-velopment did not occur without assistance fromother countries, either through direct assistance inthe form of capital, or through indirect assistanceinvolving the sharing of technical knowledge.

After discussing the various draft resolutions andamendments, the Committee, on 30 October, re-ferred them to a sub-committee (sub-commit-tee I), consisting of representatives of Czechoslo-vakia, Haiti, India, Iraq, Mexico, the Netherlands,New Zealand, Norway, Peru and the UkrainianSSR, for the purpose of consolidating them into asingle resolution. The sub-committee recommendedtwo resolutions to the Second Committee—one oneconomic development of under-developed coun-tries, and the other on the establishment of aneconomic commission for the Middle East.3

With respect to the draft resolution on economicdevelopment of under-developed countries, the sub-committee recommended (A/C.2/141) that theEconomic and Social Council and the specializedagencies should be asked to give further and urgentconsideration to the whole problem of economicdevelopment of under-developed countries in all itsaspects, and that the Council should include in itsreport to the next regular session of the GeneralAssembly a statement on (1) measures alreadydevised by the Council and the specialized agencies,and (2) proposals for other measures designed topromote economic development and to raise thestandards of living of under-developed countries.

The report of the sub-committee (A/C.2/141)

was discussed by the Second Committee on 13 and15 November 1948. The representative of Iraqsubmitted an amendment (A/C.2/149) expressingthe hope that the International Bank for Re-construction and Development would take imme-diate steps to adopt all reasonable measures to facil-itate the granting of development loans, particu-larly to economically under-developed areas. Theamendment was supported by Peru, Cuba, Pakistan,Syria, Greece, Haiti, India, the United States, Yugo-slavia, the United Kingdom, Chile and Ecuador.The sub-committee's resolution on economic devel-opment, as amended by Iraq, was adopted by 34votes to none, with 8 abstentions.

Several other amendments and proposals weremade in connexion with the draft resolution andwith the amendment, among them the following.The representative of Poland proposed to modifythe Iraqi amendment so that it would include aspecific reference to loans to countries devastatedby the war, and would also state that the Bank hadnot undertaken the measures necessary to co-oper-ate in the economic development of the under-developed countries (A/C.2/151). The repre-sentative of Czechoslovakia proposed a separatedraft resolution referring to the main purpose ofthe International Bank for Reconstruction and De-velopment, and expressing the hope that the Bankwould take immediate steps designed to extend itsactivities in arranging loans to countries whichwere under-developed or had been devastated bywar (A/C.2/155). All the proposals were subse-quently rejected by the Second Committee.

b. SECOND COMMITTEE'S DISCUSSIONS ONTECHNICAL ASSISTANCE

The Second Committee discussed the question oftechnical assistance for economic development atits 69th and 70th meetings on 2 and 3 November1948. The discussion centred around a draft reso-lution submitted jointly by Burma, Chile, Egyptand Peru (A/C.2/129). Amendments and fur-ther proposals were suggested by Peru (A/C.2/-136) and by Haiti (A/C.2/129/Add.l). The lat-ter was later withdrawn and a joint proposal byHaiti and Peru (A/C.2/140) offered instead.

The joint resolution (A/C.2/129), inter alia,called for a budget provision of an amount not toexceed $500,000 for the year 1949, for the purposeof providing technical assistance when requestedby Governments participating in the work of theUnited Nations. The resolution set forth a seriesof policies which should be adhered to in givingaid: that the technical assistance furnished should

3 For the first, see p. 437; for the second, p. 523.


(1) not be a means of foreign economic and po-litical interference in the internal affairs of thecountry concerned and should not be accompaniedby any consideration of a political nature, (2) begiven only to or through Governments, (3) be de-signed to meet the needs of the country concerned,(4) be provided, as far as possible, in the formwhich that country desired, and (5) be of highquality and competence.

At the request of the representative of the UnitedStates, the Chairman invited the Assistant Secre-tary-General in charge of Economic Affairs to makea statement concerning the extent to which cer-tain functions were already being carried out. Hedealt (A/C.2/138) in particular with:

(1) The organization and financing of internationalteams of experts in the economic, financial, fiscal andstatistical fields.

(2) The organization of facilities for the training ofexperts of under-developed countries abroad and of localtechnicians within the under-developed countries them-selves.

(3) The organization of international conferences ofexperts.

(4) The organization of exhibits, compilation ofbibliographies and exchange of information on technicalpublications.

He pointed out that the Secretary-General didnot have the necessary administrative facilities inthe Secretariat to carry on the functions enumeratedin the draft resolution, even if the entire directcosts were borne by the requesting Governmentsand other agencies. He also pointed out that ineach of their special fields, the specialized agenciesprovided a variety of types of technical assistancefor economic development. They included, forexample, the dispatch of advisory missions and ofindividual experts to particular countries, arrange-ments for the training of personnel abroad, the dis-semination of technical information, and the hold-ing of international technical conferences. Themost substantial programmes of technical assistancehad been those for which special funds had beenmade available, and it had been in those fields inwhich the costs of technical assistance had beenborne in part by the specialized agencies that Gov-ernments had made most requests for assistance.

The representative of Chile, in introducing thejoint draft resolution (A/C.2/129), emphasizedthat under-developed countries did not have suffi-cient capital to finance their economic develop-ment. They could only make the best possible useof the resources at their disposal with their limitedcapital and do their utmost to perfect their tech-nical knowledge in order to exploit their nationalwealth during the slow process of capitalization.The United Nations could assist such countries inimproving their technical knowledge and training

their technicians. But, hitherto, countries request-ing assistance from the United Nations had had tobear the costs themselves, except for the salaries ofexperts provided from the Secretariat. The presentresolution aimed at giving the United Nations theresources necessary to implement technical aid inthe economic field.

The majority of representatives endorsed thejoint draft resolution. The representative of Nor-way, however, proposed the deletion of the para-graph stating the policies which should be adheredto in granting technical aid, on the ground that itwas repetitious, since it followed the principlesalready laid down in the Charter. Several repre-sentatives, including those of the USSR, Venezuelaand Burma, were in favour of retaining the para-graph.

The representatives of the USSR and Poland,while not opposing the resolution, took the viewthat foreign aid should only complement nationaleffort—that it must be considered as an accessoryto measures taken internally—and that it shouldonly be used provided the conditions under whichit was invested precluded any political or economicinterference. The representative of Pakistanagreed with the idea that self-help was the duty ofevery country. He felt that the lack of funds andcapital goods was not the most serious deficiencyof under-developed countries. What they neededmost was technical knowledge, which was providedfor in this resolution. Therefore he would supportit. The representative of Peru also stressed that itwas important to include the specialized agenciesin the programme and to be sure that the workalready done by them was not duplicated, and sub-mitted an amendment to the joint resolution to thateffect (A/C.2/136). The representatives of Mex-ico, France and the United Kingdom also agreedthat co-ordination between the United Nations andthe specialized agencies was important.

The representatives of Haiti and Peru jointlysubmitted another resolution (A/C.2/140), re-questing ILO to examine urgently the most appro-priate arrangements for facilitating the admissionof qualified persons from countries suffering froma lack of technicians and specialists to the world'scentres of training for apprentices and technicalworkers.

The Committee established a drafting sub-com-mittee (sub-committee 2), composed of representa-tives of Australia, Belgium, Brazil, Burma, Chile,the Byelorussian SSR, Norway, Poland, Peru andSyria, to redraft the resolutions submitted, takinginto account the comments which had been madein the Committee. It recommended (A/C.2/157)two draft resolutions: draft resolution A on tech-


nical assistance for under-developed countries, anddraft resolution B on training for apprentices andtechnical workmen.

These resolutions were adopted, with minoramendments, by the Second Committee at its 80thmeeting on 19 November, by 36 votes to none,with 7 abstentions, and by 34 votes to none, with8 abstentions, respectively. They were subsequentlyadopted by the General Assembly.4

The Second Committee also had before it, at its80th meeting, the tentative financial estimate sub-mitted by the Secretary-General on technical as-sistance for economic development (A/C.2/157/-Add.l). This estimated that the total expenditurefor 1949 was within the following ranges:Comprehensive economic missions $ 70,000Training of experts abroad from 180,000 to $240,000Other activities 34,000Administrative unit 40,000

TOTAL FROM $324,000 to $384,000

c. FIFTH COMMITTEE'S DISCUSSIONS ON TECH-NICAL ASSISTANCE

The Fifth Committee, at its 163rd, 166th and167th meetings, considered the financial implica-tions of the draft resolution on technical assistanceadopted by the Second Committee. In addition tothe resolution (A/C.2/W.8), the Committee hadbefore it as a basis the draft report of the SecondCommittee (A/C.2/W.10), estimates submittedby the Secretary-General (A/C.5/264) and a re-port by the Advisory Committee on Administrativeand Budgetary Questions (A/735). The latterrecommended that a total credit of $170,000 fortechnical assistance should be added to section 10of the budget estimates of the Department ofEconomic Affairs for the year 1949. The recom-mendation of the Advisory Committee had beenbased on the estimated cost of two comprehensiveeconomic missions in 1949 ($70,000), of thirtyfellowships ($60,000), of the other activities spe-cified in the paragraph concerning Secretariat ar-rangements ($15,000) and of the additionaladministrative personnel considered necessary($25,000).

After a brief discussion, the Fifth Committee, by26 votes to 11, with 12 abstentions, recommendedthat the General Assembly set aside $288,000 asthe total estimate required in 1949 for the purposeof technical assistance for economic development.The Committee called the attention of the Gen-eral Assembly to the fact that the draft resolutionrecommended by the Second Committee repre-sented a departure from the policy being followedby the Secretary-General, namely, that the costs of

technical services of the nature contemplated bythe draft resolution were fully recoverable from theMember Governments for which the services wereperformed, except in the case of salaries of UnitedNations staff members so long as it was not neces-sary to replace them (E/471/Add.1). It also con-sidered it desirable to call attention to the Ad-visory Committee's observation that the virtues ofself-help should not be lost sight of, and that Gov-ernments, when framing their requests for assis-tance, should also take due account of the questionof sharing of costs of services rendered. The FifthCommittee asked that particular care be taken toensure that activities undertaken by the UnitedNations in this field did not duplicate or overlapfunctions or services which were a special responsi-bility of a specialized agency. In approving a netexpenditure for 1949, the Committee took into ac-count the fact that the responsibility for decidingthe financial conditions under which the servicecontemplated should be rendered, was imposedupon the Secretary-General and was subject to re-view. It recommended that the question of sharingthe costs of technical services performed underthis and other General Assembly resolutions shouldbe studied in all its aspects during 1949 by theSecretary-General, in consultation with the Ad-visory Committee on Administrative and Budget-ary Questions (A/745).

d. RESOLUTIONS ADOPTED BY THE GENERALASSEMBLY

The General Assembly, on 4 December 1948,considered the report of the Second Committee(A/737) and the report of the Fifth Committee(A/745) on chapter II—Economic Questions—of the report of the Economic and Social Council.

On the question of economic development, therepresentative of the USSR stated that the resolu-tion should spur the Council to give serious atten-tion to international economic problems. Both heand the representative of Czechoslovakia felt thatthe fact that the Bank had not devoted sufficientattention to the problem of economic developmentof under-developed countries should have beenmentioned. The representative of Haiti thoughtthat means should be sought to attract capital beingheld back from investment and these means exam-ined at the next Assembly. Summing up, the rep-resentative of Haiti stated that it would be the taskof the Council to consider what reciprocal guar-antees could be offered to dispel both the hesitationof capitalists who feared the nationalization ofprivate undertakings and the anxieties of national-

4 See resolutions 200(III) and 201(III), pp. 437-38.


ist Governments who feared the domination ofmonopolistic capital.

Concerning technical assistance, the representa-tive of Belgium was in favour of a lower budget.The representative of the USSR stated that, whilehe supported the programme of technical assistance,in general he thought that countries benefitingshould bear the costs. Therefore he would abstainfrom voting on this resolution.

As proposed by the Second Committee,5 the Gen-eral Assembly adopted resolution 198(III) by 51votes to none, resolution 200(III) by 47 votes tonone, with 6 abstentions, and resolution 201(III)by 45 votes to 2, with 6 abstentions.

Resolution 198(III) read as follows:"The General Assembly,"1. Considering that the low standards of living

existing in Member States have bad economic and socialeffects in the countries directly concerned and on theworld as a whole, and create conditions of instabilitywhich are prejudicial to the maintenance of peaceful andfriendly relations among nations and to the developmentof conditions of economic and social progress,

"2. Recalling that the Charter of the United Nationsbinds Member States individually and collectively topromote higher standards of living,

"3. Recommends that the Economic and Social Coun-cil and the specialized agencies give further and urgentconsideration to the whole problem of the economicdevelopment of under-developed countries in all itsaspects, and that the Economic and Social Council includein its report to the next regular session of the GeneralAssembly (a) a statement on measures already devisedby the Economic and Social Council and the specializedagencies, and (b) proposals for other measures designedto promote economic development and to raise thestandards of living of under-developed countries;

"4. Endorses resolution 167 (VII), E, of the Economicand Social Council in which the Council expresses itshope that the International Bank for Reconstruction andDevelopment will take immediate steps to adopt allreasonable measures to facilitate the early realization ofdevelopment loans particularly those in areas econom-ically under-developed."

Resolution 200(III) read as follows:"The General Assembly,"1. Taking into account the action in relation to tech-

nical assistance previously taken by the General Assem-bly (resolutions 52(I) and 58(I) of 14 December1946) and by the Economic and Social Council (resolu-tions 27(IV) and 51 (IV) of 28 March 1947, 96(V)of 12 August 1947, 139 (VII), A, of 26 August 1948and 149(VII), Q of 27 August 1948),

"2. Considering that"(a) The promotion of conditions of economic and

social progress and development is one of the principalobjectives of the Charter of the United Nations,

"(b) The lack of expert personnel and lack of tech-nical organization are among the factors which impedethe economic development of the under-developed areas,

"(c) The United Nations can extend efficacious andtimely help in this connexion for the achievement of theobjectives set forth in Chapters IX and X of the Charter,

"3. Decides to appropriate the funds necessary to en-

able the Secretary-General to perform the followingfunctions, where appropriate in co-operation with thespecialized agencies, when requested to do so by MemberGovernments:

"(a) Arrange for the organization of internationalteams consisting of experts provided by or through theUnited Nations and the specialized agencies for the pur-pose of advising those Governments in connexion withtheir economic development programmes, the organiza-tion of such teams, of course, not to preclude the invita-tion of individual, or groups of, experts from the UnitedNations or from specialized agencies in connexion withproblems in the field of those specialized agencies;

"(b) Arrange for facilities for the training abroad ofexperts of under-developed countries through the pro-vision of fellowships for study in those countries or insti-tutions which, in the particular fields of study, haveachieved an advanced level of technical competence;

"(c) Arrange for the training of local technicianswithin the under-developed countries themselves by pro-moting visits of experts in various aspects of economicdevelopment for the purpose of instructing local person-nel and for assisting in the organization of technicalinstitutions;

"(d) Provide facilities designed to assist Govern-ments to obtain technical personnel, equipment and sup-plies, and to arrange for the organization of such otherservices as may be appropriate in the promotion of eco-nomic development, including the organization of semi-nars on special problems of economic development, andthe exchange of current information concerning technicalproblems of economic development;

"4. Instructs the Secretary-General to undertake theperformance of the functions listed in paragraph 3 above,in agreement with the Governments concerned, on thebasis of requests received from Governments with dueregard to geographical considerations and in accordancewith the following policies:

"(a) The amount of services and the financial con-ditions under which they shall be furnished to thevarious Governments shall be decided by the Secretary-General, and shall be reviewed by the Economic andSocial Council at each of its sessions;

"(b) The kind of service mentioned under paragraph3 above to be rendered to each country shall be decidedby the Government concerned;

"(c) The countries desiring assistance should performin advance as much of the work as possible in order todefine the nature and the scope of the problem involved;

"(d) The technical assistance furnished shall (i) notbe a means of foreign economic and political interferencein the internal affairs of the country concerned and shallnot be accompanied by any considerations of a politicalnature; (ii) be given only to or through Governments;(iii) be designed to meet the needs of the country con-cerned; (iv) be provided, as far as possible, in the formwhich that country desires; (v) be of high quality andtechnical competence;

"(e) The sums appropriated for the performance ofthe functions set forth in paragraph 3 shall not be ex-pended on functions or services which are a specialresponsibility of a specialized agency except in agree-ment with the executive head of that agency;

"5. Requests the Secretary-General to report to eachsession of the Economic and Social Council on the

5 For the resolution adopted on the establishment of anEconomic Commission for the Middle East, see p. 523.


measures which he has taken in compliance with theterms of the present resolution;

"6. Recommends to the Economic and Social Councilthat it review at each session the actions taken under thepresent resolution and, when necessary, formulate recom-mendations concerning policy and budgetary action re-quired by the General Assembly to carry on the functionsinstituted by the present resolution."

Resolution 201(III) read as follows:"The General Assembly,"Requests the International Labour Organisation to:"Examine, in consultation with the United Nations

and its regional economic commissions, the most appro-priate arrangements for facilitating the admission to theworld's centres of training for apprentices and technicalworkers of qualified persons from countries which sufferfrom a lack of technicians and specialists necessary to thedevelopment of their national economy; and

"Report to the Economic and Social Council as earlyas possible on the action taken."

Following the third session of the General As-sembly, the question of economic development forunder-developed areas was dealt with under threemain headings: (1) Technical Assistance for Eco-nomic Development under General AssemblyResolution 200(III); (2) Expanded Co-operativeProgramme of Technical Assistance for EconomicDevelopment; and (3) Methods of FinancingEconomic Development of Under-DevelopedCountries.

2. Technical Assistance for EconomicDevelopment under General Assembly

Resolution 200 (III)

a. SECRETARIAT ACTIVITIES DURING 1949As of 31 December 1949, requests for expert

advice under resolution 200(III) had been re-ceived from Haiti, Bolivia, Guatemala, Afghanis-tan, Ecuador, Mexico, Chile, Iran, Pakistan, thePhilippines, Burma and Thailand. Arrangementshad been made or were being made to provide theassistance requested. Of the 152 fellowships re-quested by twenty-six Members during 1949, rec-ommendations for awards were made in the caseof sixty-eight candidates. The selected fellowswere studying or preparing to study in the follow-ing Member countries: Australia, Belgium, Can-ada, Chile, Costa Rica, Denmark, France, India,Mexico, the Netherlands, New Zealand, Sweden,the United Kingdom and the United States.

In connexion with the dissemination of tech-nical information, a start had been made byDecember 1949 to provide the following types ofservices: a clearing house service to handle specificinquiries for technical information, the develop-ment of contacts with Governments and of sources

of information necessary to permit the rapidlocation of experts available for technical assistanceservices, the organization of seminars or meetingsof groups of experts to deal with problems of par-ticular interest to economically under-developedcountries, periodic publications and handbooks onparticular technical subjects.

The first seminar under resolution 200(III) washeld at Lake Success in October 1949; it consideredprevailing practices and problems of domesticfinancing in selected under-developed countries.Experts from Chile, Egypt, India, Mexico, the Phil-ippines, Puerto Rico and the United Kingdom par-ticipated in the meeting. The report on the meet-ing (E/1562), containing papers prepared by theexperts with reference to problems of financing intheir respective countries or territories, was madeavailable to the Economic and Social Council at itstenth session.

A report was also prepared in 19496 on theUnited Nations Mission of Technical Assistance tothe Republic of Haiti. This Mission had been re-quested under Council resolution 51 (IV),7 andhad given impetus to General Assembly resolution200(III). The Mission, composed of Membersof the United Nations, the Food and AgriculturalOrganization, the United Nations Educational, Sci-entific and Cultural Organization, the InternationalMonetary Fund, and the World Health Organiza-tion, left for Haiti in October 1948, to spend abouttwo months studying and advising the HaitianGovernment on problems relating to the economicdevelopment of Haiti. Among other things, theMission recommended:

(1) That an independent advisory national resourcesand development board be established with five full-termmembers.

(2) That measures be taken to improve the civilservice through appropriate reforms of relevant laws,regulations, practices, and administrative arrangements,including rules and arrangements concerning recruit-ment, tenure, functions, rights and obligations, emolu-ments, promotion, retirement or dismissal of staff.

(3) That the Government consider measures to en-courage local initiative and self-help, and that the organsof local government be strengthened to play their properpart in developmental public works, in improving sani-tary installations and water supplies, and in providingother facilities for health improvement and for furtheringeducation, etc.

(4) That a master plan for speedy improvement inthe first instance of existing "national roads" and of"departmental roads" of vital importance should beprepared without delay.

(5) That early consideration be given to the estab-6 For further details, see United Nations. Mission to

Haiti, Report of the United Nations Mission of TechnicalAssistance to the Republic of Haiti. (United NationsPublications, Sales No.: 1949.II.B.2)

7 See p. 432.


lishment of an organized coastal small-boat transporta-tion service.

(6) That serious consideration be given to the possi-bility of encouraging emigration as a means of relievingthe acute population pressure.

(7) That measures be taken as soon as feasible toprovide for the collection, preparation and publicationby the Government of complete and accurate statistics.

b. ACTION TAKEN BY THE ECONOMIC ANDSOCIAL COUNCIL AT ITS EIGHTH AND NINTHSESSIONS

At its eighth session in February-March 1949,the Economic and Social Council had before it thereport of the Secretary-General (E/1174), whichbriefly surveyed the initial activities taken by himto implement General Assembly resolution 200(III). At its ninth session in July-August 1949,the Council received the Secretary-General's secondreport (E/1335 and Add. 1 to 3), describing indetail the actions taken by him under the resolu-tion up to 1 July 1949. He reported on arrange-ments completed and in progress concerning com-prehensive and special missions, on awards ofthirty-eight fellowships to candidates from twentyMember Countries, and on the progress of otheractivities undertaken in accordance with this reso-lution. The Secretary-General also recommendedthat the Council consider an expansion of theseactivities.

The Council reviewed the report and consideredhis recommendation for the year 1950. After anexhaustive debate on the expanded programme fortechnical assistance for economic development (seebelow), and after taking into account its other ac-tions related to the expanded programme, theCouncil adopted by 12 votes to 5, with 1 absten-tion, resolution 222(IX)C. In this resolution itrecognized the need for placing technical assist-ance activities for economic development at leastto some extent"on a continuing basis by making annual provision forthem within the regular budget of the United Nations"

and recommended that the General Assembly"take the necessary actions to ensure that the regularbudget of the United Nations shall continue to providethe funds necessary to carry on technical assistance foreconomic development of under-developed countries au-thorized by resolution 200(III)".

The representatives of Denmark and Australiastated that they did not agree that the Assemblywas competent to make financial provision severalyears ahead, nor was this advisable.

c. CONSIDERATION BY THE GENERAL ASSEM-BLY AT ITS FOURTH SESSION

The General Assembly, at its fourth regular ses-sion, considered the question of technical assistance

for economic development concurrently with theother part of the report of the Council dealing witheconomic development: the report of the Councilon economic development and its suggested ex-panded co-operative programme of technical as-sistance (A/972, chapter II.A). These questionswere considered at the 88th to 98th meetings ofthe Second Committee, from 29 September to 14October, and at the 24lst and 242nd plenarymeetings on 16 November 1949.

(1) Discussions in the Second Committee

In the course of the general debate on all thoseitems at the 88th to 95th meetings of the SecondCommittee, from 29 September to 11 October,some observations were made on the draft resolu-tion proposed by the Council on technical assist-ance for economic development arising out ofGeneral Assembly resolution 200(III) and con-tained in the Council's resolution 222(IX)C.

Several representatives, including those of Aus-tralia, Brazil, Chile, Ecuador, Haiti, New Zealandand the United States, supported the Secretary-General's recommendations for the year 1950 underthis programme (E/1335/Add.l). The repre-sentatives of Ecuador, New Zealand and the UnitedStates also added that the programme should becovered, on a continuing basis, in the regularbudget of the United Nations. The representativeof Haiti favoured its extension to include pilotdevelopment projects concentrated on economicdevelopment in selected small under-developedcountries.

The representatives of Australia and India heldthe view that this programme, although providedfor separately in the regular budget of the UnitedNations, should administratively become part ofthe expanded programme to be undertaken by theUnited Nations. The representatives of Australiaand Belgium doubted whether, when a central fundfor contributions towards an expanded programmewas established and in operation, it would be neces-sary to have two separately financed programmes.

After a brief discussion, at the 98th meeting on14 October 1949, the Second Committee unan-imously adopted (A/1064 (B)) the resolutionsuggested by the Council (see below). The onlymain point raised during the discussion concernedfellowships. The representative of Greece sug-gested that the Secretary-General should be invitedto consider means of ensuring that fellows re-turned to their native countries when their fellow-ships expired, since there seemed to be great diffi-culty in getting them to do so.

The Chairman (the representative of Chile)pointed out that the existing fellowship schemes


showed awareness of the problem. In practice, thefellowships were offered only for a period of threeto six months, and the holders invariably returnedto their countries when their training periods wereover.

At the Committee's 113th meeting on 4 Novem-ber, during the discussion on the section of theCouncil's report dealing with Economic Questions(A/972, chapter II.B), the representative of thePhilippines said that during the general debate hehad raised the question of the eligibility of non-member States for technical assistance under reso-lution 200(III). He pointed out the case of Cey-lon, which, although not a Member of the UnitedNations, was an associate member of the EconomicCommission for Asia and the Far East (ECAFE)and had inquired about the possibility of receivingtechnical assistance under this resolution. Thequestion had been discussed by ECAFE, and mem-bers of that Commission had expressed dissatisfac-tion that technical assistance was limited under theresolution to Members of the United Nations. HisGovernment believed that the Assembly shouldtake steps to ensure the possibility of any self-gov-erning country—which participated in the work ofa regional commission or was a member of a spe-cialized agency—receiving technical assistance un-der the resolution. He therefore submitted a draftresolution (A/C.2/L.30) to this effect. At the114th meeting, he submitted a revised resolution(A/C.2/L.30/Rev.l) to ensure that non-membercountries, such as Ceylon, should be entitled to re-ceive technical assistance pending the coming intooperation of the expanded programme.

The Philippine draft resolution was, however,ruled out of order, since the subject had alreadybeen discussed and closed. The President's rulingwas upheld by 21 votes to 13, with 11 abstentions.

(2) Resolution Adopted by the General Assembly

The General Assembly, at its 24lst and 242ndmeetings on 16 November 1949, discussed thedraft resolution on technical assistance under200(III) in conjunction with that on the ex-panded programme.8 The discussion centred mainlyon the expanded programme.

The Fifth Committee reported to the Assembly(A/1072) that the Secretary-General had sub-mitted a note (A/C5/328) stating that the finan-cial provisions proposed by the Second Committeehad been included in the 1950 budget estimate.These provisions would be discussed in due courseby the General Assembly, when it considered thequestion of the budget for the year.

At its 242nd meeting on 16 November, theGeneral Assembly unanimously adopted the reso-

lution on technical assistance under resolution200(III), as proposed by the Second Committee(A/1064 (B)) . The resolution (305 (IV)) readas follows:

"The General Assembly,"Having considered the Economic and Social Council's

recommendation, in accordance with paragraph 6 of Gen-eral Assembly resolution 200(III) of 4 December 1948,including its recommendations concerning 'budgetaryaction required by the General Assembly to carry on thefunctions instituted', by resolution 200(III),

"Having decided, in resolution 200(III), 'to appro-priate the funds necessary to enable the Secretary-General to perform' certain functions set out in thatresolution,

"1. Agrees with the recommendations of the Eco-nomic and Social Council that the activities under reso-lution 200(III) should be expanded in 1950 in accord-ance with the Secretary-General's proposals, that increasedappropriations should be provided therefore and thatthe regular budget of the United Nations should con-tinue to provide for the activities authorized by thatresolution;

"2. Notes with approval that the Secretary-Generalhas included an amount for these services in the budgetof the United Nations for the year 1950."

3. Expanded Co-operative Programmeof Technical Assistance for Economic

Development

a. ACTION TAKEN BY THE ECONOMIC ANDSOCIAL COUNCIL AT ITS EIGHTH SESSION

Both General Assembly resolution—200(III)"Technical Assistance for Economic Development"and 198(III) "Economic Development of Under-Developed Countries"—were considered by theCouncil at its eighth session in February-March1949. The Council also had before it the reportof the Secretary-General (E/1174) concerning hisinitial activities under resolution 200(III). Add-ing impetus to the discussion on technical assist-ance was the proposal (Point Four) by the Presi-dent of the United States, in his inaugural address,to co-operate with the United Nations and thespecialized agencies, where practicable, in a boldnew programme for making the benefits of scien-tific advances and industrial progress available forthe improvement and growth of under-developedareas.

The following general views emerged duringthe discussions of the Council at its 251st, 253rd,257th and 259th to 262nd meetings on 25 and 28February and 2, 3 and 4 March 1949.

It was generally agreed that national develop-ment must depend primarily on national resourcesand must come largely from the efforts of thepeople concerned. However, although they agreed

8 See p. 451.


that capital investment should be encouraged, somerepresentatives were in favour of international aidprimarily in the form of technical assistance. Thisaid, they felt, could not follow the same lines ineach country, since assistance would depend on thestate of development of the country itself.

Several representatives, on the other hand, con-sidered that industrialization should be the imme-diate aim in all cases, since industrialization wasthe essential prerequisite to national developmenttowards economic and political independence.

Others took the view that foreign finance wasof great importance, and that it was necessary tofind a method for supplying it that would be satis-factory to all. Some under-developed countrieswere in favour of private investment, while others,fearing interference in their economies, spokestrongly for financing through international organ-izations.

These points of view were later elaborated in theCouncil's discussions of the expanded programmeat its ninth session.9

After an extended debate concerning the needfor an expansion of technical assistance to under-developed countries, the Council, on 4 March 1949adopted resolution 180(VIII), which had beenproposed by the representative of the United States.

"The Economic and Social Council,"Taking into account the resolutions of the General

Assembly with respect to expert advice (52 ( I ) ) , eco-nomic development (198(III)), and technical assistancefor economic development (200(III)) and the Secre-tary-General's first report thereunder.

"Recognizing the significant contribution to economicdevelopment that can be made through internationalco-operation among countries, especially through theUnited Nations and its specialized agencies, and

"Recognizing the special importance for economicdevelopment of expanding the international exchange oftechnical knowledge,

"Calls upon Member Governments to promote by allappropriate means the expansion of the internationalexchange of technical knowledge, especially through theUnited Nations and its specialized agencies; and

"Requests the Secretary-General, in consultation withthe executive heads of the interested specialized agenciesthrough the Administrative Committee on Co-ordination,and taking into consideration the suggestions of MemberGovernments, to prepare a report for the ninth sessionof the Council setting forth:

"1. A comprehensive plan for an expanded co-opera-tive programme of technical assistance for economicdevelopment through the United Nations and its spe-cialized agencies, paying due attention to questions of asocial nature which directly condition economic develop-ment;

"2. Methods of financing such a programme includingspecial budgets; and

"3. Ways of co-ordinating the planning and executionof the programme".

On the basis of a proposal submitted by theAmerican Federation of Labor (E/1083) for the

creation "of a central publication for the publica-tion and promotion and advising on developmentprojects," the Council recommended (181 (VIII))on 10 March that the Secretary-General considerthis proposal in carrying out his activities underGeneral Assembly resolution 200 (III) and Coun-cil resolution 180 (VIII).

b. RECOMMENDATIONS OF THE ECONOMIC ANDEMPLOYMENT COMMISSION AND ITS SUB-COMMISSION ON ECONOMIC DEVELOPMENT

The fourth session of the Economic and Em-ployment Commission, in May 1949, had before it,inter alia, the report of the second session of theSub-Commission on Economic Development (E/-CN.1/61).

The second session of the Sub-Commission hadgiven particular attention to the available types oftechnical assistance for economic development, andto the actions taken by the United Nations and thespecialized agencies to increase the availability ofsuch assistance. The Sub-Commission had recom-mended, among other things,"that the United Nations should, under approved andagreed conditions, be prepared to share some of the costsof technical assistance"

and had emphasized"the need for special budgetary appropriations for en-abling the Secretary-General to discharge these responsi-bilities."

However, before the Economic and EmploymentCommission had had an opportunity to considerthese recommendations, the General Assembly hadadopted, on 4 December 1948, its own resolution200(III), which provided for the institution oftechnical assistance services to be extended toMember Governments at their request under poli-cies and conditions similar to those recommendedby the Sub-Commission. The Commission took noteof this action and of the fact that resolution 200(III) requested the Secretary-General to report onhis activities under this resolution directly to theCouncil, as well as of the fact that the Council had,during its eighth session, requested the Secretary-General to prepare for the Council's considerationa plan for an expanded programme of technicalassistance. In its report to the Council (E/1356),the Economic and Employment Commission statedthat"since the concern of the Commission involves considera-tion of the practical problems of technical assistance aswell as the consideration of general principles andtheoretical problems, the Commission was of the opinionit should have been given a more active part in theexpansion of such assistance; that it should have beengiven responsibility to advise and comment upon the

8 See pp. 447-48.


work of the Secretariat in providing technical assistance,and that the Council would wish to consider the futurerole of the Commission in this matter."

Regarding specific technical assistance measures,the Commission proposed for the Council's con-sideration two resolutions. One called upon Mem-ber Governments"to contribute to the promotion of economic develop-ment and international understanding by initiating newprogrammes or extending existing programmes of grant-ing fellowships to foreign students and of providingstudy and research facilities for them in fields where thecountries have special experience" (E/1356/Annex C).

The other called upon Member Governments"to adopt a policy of preventing assignments on tech-nical assistance service accepted by experts in their em-ployment from resulting in the loss of seniority orother advantages accruing from continuous service"(E/1356/Annex D).

The Council, however, in resolution 221 (IX) B,decided not to take any action on these mattersduring the ninth session, in order to be able totake them into consideration in the future in thelight of whatever action might be taken by theGeneral Assembly on the expanded programme oftechnical assistance.

c. ACTION TAKEN BY THE ECONOMIC ANDSOCIAL COUNCIL AT ITS NINTH SESSION

The Secretary-General's plan for an expandedco-operative programme of technical assistance foreconomic development (E/1327/Add.l)10 servedas the basis for the Council's consideration, duringits ninth session in July-August 1949, of an ex-pansion of those activities then being carried onby the United Nations and its specialized agencieswhich were designed to assist under-developedcountries in their economic development, includingthose activities of a social nature which directlycondition economic development.

The Secretary-General submitted this report tothe Council with a letter of transmittal (E/1327)to the President of the Council. This letter in-cluded the following observations:

"Various methods of financing the expanded co-op-erative programme were examined and preferences fordifferent methods expressed. It was—and remains—myview that in the interest of co-ordinated action the mostappropriate way of financing the programme would bethrough the establishment of a single common fundinto which all special contributions from Governmentswould be paid and out of which allocations would bemade to the several international organizations to meet,subject to such broad policies as might be laid down bythe Economic and Social Council and the General As-sembly, the varying needs of Governments for technicalassistance as they arose. The majority of my colleaguesfrom the specialized agencies were not able to subscribeto this position. They and I felt strongly, however, that

the Council would wish that, in the preparation of thereport requested from me, every effort should be made toreach agreed proposals. Consequently we have agreedupon the proposals in chapter 5 of the report now sub-mitted to the Council for its consideration as a com-promise between the various views on the matter."

In connexion with this plan, the Council alsohad before it statements from several specializedagencies, namely:

(a) A resolution concerning this matter adopted bythe Council of the Food and Agriculture Organizationof the United Nations at its sixth session, held in Parisin June 1949 (E/1373);

(b) A letter from the Director-General of the Inter-national Labour Organisation enclosing the report ontechnical assistance for economic development adoptedby the International Labour Conference on 1 July 1949(E/1381);

(c) The resolution on this matter adopted by theWorld Health Organization at its Second World HealthAssembly on 30 June 1949 (E/1383), the resolution ofthe Executive Board of the World Health Organizationadopted at its fourth session (E/1383/Add.l), and thecorrigenda to the report on technical assistance for eco-nomic development dealing with the proposals submittedto the Council by the World Health Organization(E/1327/Add.l/Corr.l and Add.l/Corr.2); and

(d) The resolution concerning this matter adopted bythe Executive Board of the United Nations Educational,Scientific and Cultural Organization on 10 June 1949(E/1408).

All these agencies had expressed a general agree-ment with the plan and had indicated in one wayor another the forms in which they were preparedto make contributions to the expanded programme.

During the extended debate, at the 55th to 80thmeetings of the Council's Economic Committee,and at the 303rd, 307th to 312th, 340th and 341stto 343rd plenary meetings of the Council concern-ing the plan submitted by the Secretary-General,the Council also heard oral statements from theAssistant Secretary-General in charge of EconomicAffairs, the Assistant Secretary-General in chargeof Social Affairs, the Director-General of the Inter-national Labour Organisation, the representative ofthe Director-General of the Food and AgricultureOrganization, the Director-General of the WorldHealth Organization, the Director-General of theUnited Nations Educational, Scientific and CulturalOrganization, and the representative of the Direc-tor-General of the International Civil AviationOrganization.

A considerable part of the debate centred on thetypes of activities which should be emphasizedunder the expanded programme and on projectsto which less importance should be attached in

10 United Nations. Technical Assistance for EconomicDevelopment. Plan for an Expanded Co-operative Pro-gramme through the United Nations and the SpecializedAgencies. (United Nations Publications, Sales No.:1949.II.B.1.)


view of the economic development objectives ofthe programme. Although no specific action wastaken by the Council with respect to priorities thatmight be assigned to different types of activities,the resolution which was adopted by the Council(222 (IX) A) contained a paragraph (paragraph7), in which the Technical Assistance Board andthe Technical Assistance Committee (see below)were requested to take into account, in carrying outtheir terms of reference, "the records of the debateon the expanded programme which occurred dur-ing the ninth session of the Council".

(1) Expanded Programme of Technical Assistancefor Economic Development Recommended by the

Council

The Council's action on the expanded pro-gramme was embodied in resolution 222 (IX) A(adopted paragraph by paragraph) which read asfollows:

"The Economic and Social Council,"Having considered the report prepared by the Secre-

tary-General, in consultation with the specialized agen-cies, on an expanded programme of technical assistancefor economic development, pursuant to resolution

"Being impressed with the significant contribution toeconomic development that can be made by an expansionof the international interchange of technical knowledgethrough international co-operation among countries,

"Believing that a sound international programme ofthis character must combine and make use of the expe-rience of many nations, with different social patterns andcultural traditions and at different stages of development,so as to facilitate progress in the less-advanced countriesand to help solve their technical and economic problems,

"1. Transmits to the General Assembly the above-mentioned report together with the observations andguiding principles set out in Annex I of this resolution;

"2. Recommends that the General Assembly approvethe draft resolution in Annex II, which provides for anexpanded programme of technical assistance for economicdevelopment of under-developed countries;

"3. Requests the Secretary-General, subject to suchdecision as may be taken by the General Assembly onthe draft resolution in Annex II, to invite the Admin-istrative Committee on Co-ordination to set up a Tech-nical Assistance Board (TAB) which shall consist ofthe executive heads, or their representatives, of theUnited Nations and of the specialized agencies whichparticipate in accordance with this paragraph in theexpanded programme of technical assistance. The Secre-tary-General, or his representative, shall be Chairmanof the Board. Within the TAB:

"(a) Each participating organization shall informthe other organizations of requests to it for technicalassistance for economic development;

"(b) Important requests for such assistance shall bepromptly discussed;

"(c) The participating organizations shall discusstheir co-ordination efforts under this programme, shallconsult before comprehensive missions and programmesof assistance involving several organizations are arranged,and each shall be prepared to co-operate fully with theothers in activities involving their common interests;

"(d) The participating organizations shall exchangeinformation which becomes available to them on currentdevelopments in the field of technical assistance, includ-ing the progress of technical assistance rendered orprojected by them, by Governments and by privateorganizations;

"(e) The TAB shall inform the Technical AssistanceCommittee of the Council (TAC), mentioned below, ofany requests for technical assistance for economic de-velopment as soon as they have reached the TAB, sothat the TAC shall always be in possession of a list ofprojects being discussed or reviewed by the TAB orparticipating organizations;

"(f) Periodic reports shall be made by the TAB tothe TAC; these reports shall include an examination ofactivities undertaken and results achieved, and a state-ment on funds received and committed under thisexpanded programme;

"(g) Each participating organization shall presentannually to the TAB its proposed programme for the nextfiscal year in the light of its experience with the ex-panded programme. The programmes of the severalparticipating organizations shall be examined in relationto each other, and the TAB shall make recommendationsconcerning them and the total programme to the Councilthrough the TAC;

"(h) All decisions other than on procedural mattersshall be taken by general agreement and, when agree-ment cannot be reached, the issue in dispute shall bereferred for decision to the TAC;

"4. Authorizes the Secretary-General, after consulta-tion with the other participating organizations, to desig-nate the Executive Secretary of the TAB, who shall:

"(a) Convene and service the TAB and prepare theneeded documents;

"(b) Collect and circulate to members of the TAB:"(i) Information regarding enquiries for technical

assistance received by the participating organizations;"(ii) Programmes of the participating organiza-

tions for technical assistance in the fields for whichthey are responsible;

"(iii) Information on technical assistance renderedand projected by the participating organizations andany other information which becomes available tothem concerning such assistance rendered by Govern-ments or by other public or private bodies;"(c) Prepare or arrange for such studies in regard to

requests and plans for technical assistance as may beneeded by the TAB, and furnish, when required by theTAB, information and analyses relating to the needsand conditions of the various countries requestingassistance;

"(d) Prepare for the TAB, with the assistance of theorganizations concerned and on the basis of informationsupplied by the Governments concerned, such reportson the operations carried out under the expanded co-operative programme of technical assistance as may benecessary;

"(e) Perform such other functions as the efficientoperation of the TAB may require;

"5. Requests the Secretary-General to make appro-priate arrangements whereby the executive heads of theparticipating organizations may assign members of theirstaff to the staff of the TAB as necessary;

"6. Decides to establish, subject to such decisions asmay be taken by the General Assembly on the draftresolution in Annex II and after the conclusion of the


Technical Assistance Conference proposed in paragraph12, a standing Technical Assistance Committee of theCouncil (TAC), consisting of the members of the Coun-cil, which is authorized to sit while the Council is notin session and which shall have the following terms ofreference:

"(a) To make for the Council critical examinationsof activities undertaken and results achieved under theexpanded programme of technical assistance;

"(b) To examine each year's programme presentedto it by the TAB and report to the Council concerningit, making such recommendations as it may deem neces-sary;

"(c) To interpret this resolution in cases of conflictsor questions submitted to it by the TAB, through itsChairman, and decide any such conflicts or questions;

" ( d ) To receive reports from the TAB on progressand implementation of, and disbursements of funds un-der the expanded programme;

"(e) To review the working relationships betweenthe participating organizations and the effectiveness ofthe methods of co-ordination in connexion with theirtechnical assistance programmes, making recommenda-tions when appropriate;

To perform such other relevant functions as theCouncil may assign to it from time to time;

"7. Requests that the TAB and the TAC, in carryingout their terms of reference, be guided by the 'Observa-tions on and guiding principles of an expanded pro-gramme of technical assistance for economic develop-ment' (Annex I) and take into account the records ofthe debate on the expanded programme which occurredduring the ninth session of the Council;

"8. Recommends to the General Assembly that itauthorize the Secretary-General to set up a special accountfor technical assistance for economic development, towhich contributions of countries shall be credited andfrom which transfers shall be made to the participatingorganizations exclusively for the expanded technicalassistance programme to be carried out in the light ofthe observations and guiding principles contained inAnnex I and for administrative expenses connected there-with. The special account may include an evaluation ofservices or materials on the basis of credits in domesticcurrencies which Governments are prepared to makeavailable;

"9. Recommends to the Governments attending theTechnical Assistance Conference, provided for in para-graph 12 below, that they approve the following financialarrangements:

"(a) Contributions shall be made by Governmentsin such forms and subject to such conditions as may beagreed between the Secretary-General, after consultationwith the TAB, and the contributing Governments, pro-vided that contributions shall be made without limita-tion as to use by a specific agency or in a specific countryor for a specific project;

"(b) The Secretary-General shall allot contributionsreceived during the first fiscal year as follows:

"(i) The first $10,000,000 in contributions shallbe automatically available for distribution to the par-ticipating organizations for the expanded technicalassistance programme;

"(ii) Of the second $10,000,000 of contributionsreceived, 70% shall be automatically available fordistribution to the participating organizations and30% shall be retained for subsequent allocations, bear-

ing in mind the desirability of retaining an appropri-ate proportion for convertible currencies;

"(iii) All contributions above $20,000,000 shallbe similarly retained;"(c) Contributions automatically available for dis-

tribution to the participating organizations, in accord-ance with sub-paragraph (b) (i) and (ii) above, shallbe transferred by the Secretary-General to the organiza-tions in accordance with the following percentages:

Per centUnited Nations .................................................. 23International Labour Organisation .................... 11Food and Agriculture Organization .................... 29United Nations Educational, Scientific

and Cultural Organization .............................. 14International Civil Aviation Organization .......... 1World Health Organization .............................. 22

TOTAL 100"(d) Contributions retained under sub-paragraph (b)

(ii) and (iii) above shall be allotted by the TAB insuch a manner as it may decide and at such time as itmay decide, taking into consideration all relevant fac-tors, in particular the amounts and kinds of resources onhand and receivable, the technical assistance requestsreceived which fall within the field of the several par-ticipating organizations, the uncommitted balances heldby them, and the need for the retention of any reservesto meet unforeseen requests from Governments;

"(e) The TAB shall determine the manner in whichdifferent currencies and services or materials can be mosteffectively utilized;

The amounts received by the participating or-ganizations shall be available to them for the purposeof assuming obligations or commitments during thefiscal year in which these amounts are received, but ac-tual expenditures shall be allowed to extend over aperiod of not more than the two ensuing fiscal years;

"(g) The Secretary-General and the executive headsof the other participating organizations shall, after con-sultation, make appropriate arrangements for the auditof contributions and expenditures under this programme;

"10. Recommends that the specialized agencies con-cerned take such steps as may be necessary to enablethem:

"(a) To participate fully under this programme, toadhere to the principles set out in Annex I and to re-ceive monies and other resources from the special accountestablished by paragraph 8;

"(b) To use these monies and resources for the pur-poses set out in paragraph 8, to exercise the requiredcontrols over the technical assistance activities and themonies and resources received, and to account for theirexpenditure; and

"(e) To report to the TAC through the TAB ontheir technical assistance activities, including those fi-nanced from the special account;

"11. Decides that the financial and allocation arrange-ments shall be reviewed by the Council not later thanits twelfth session in the light of experience during thefirst year, taking into account the recommendations ofthe TAB to the TAC;

"12. Decides, subject to such decision as may be takenby the General Assembly on the draft resolution inAnnex II, to call, in accordance with the supplementaryrule of procedure of the General Assembly on the callingof international conferences by the Economic and Social


Council, a Technical Assistance Conference for thepurpose of:

"(a) Ascertaining the total amount of contributionsavailable from participating Governments for the execu-tion of the technical assistance programme of the UnitedNations and the specialized agencies during the first yearof its operation; and

"(b) Giving final consent to the proportionate sharesof the total amount of contributions to be allotted tothe various participating organizations and to the otherfinancial arrangements as set out in paragraph 9;

"13. Requests the Secretary-General:"(a) To convene the Technical Assistance Confer-

ence at the headquarters of the United Nations at suchtime as the Secretary-General finds appropriate, but, ifpossible, during or immediately following the fourthsession of the General Assembly;

"(b) To invite to the said Conference, with the rightto vote, all Members of the United Nations and allother Governments members of any specialized agencyparticipating in the programme; and

"(c) Likewise to invite, without the right to vote,representatives of the specialized agencies."ANNEX I. OBSERVATIONS ON AND GUIDING PRINCI-

PLES OF AN EXPANDED PROGRAMME OF TECHNICALASSISTANCE FOR ECONOMIC DEVELOPMENTThe Council recommends the following principles to

serve as guides to the United Nations and specializedagencies participating in the expanded programme11 oftechnical assistance, hereinafter called the "participatingorganizations":

General PrinciplesThe participating organizations should, in extending

technical assistance for economic development of under-developed countries:

1. Regard it as a primary objective to help thosecountries to strengthen their national economies throughthe development of their industries and agriculture, witha view to promoting their economic and political inde-pendence in the spirit of the Charter of the UnitedNations, and to ensure the attainment of higher levelsof economic and social welfare for their entire popula-tions;

2. Observe the following general principles laid downin General Assembly resolution 200(III) :

(a) Technical assistance for economic developmentof under-developed countries shall be rendered by theparticipating organizations only in agreement with theGovernments concerned and on the basis of requestsreceived from them;

(b) The kinds of services to be rendered to eachcountry shall be decided by the Government concerned;

(c) The countries desiring assistance should perform,in advance, as much of the work as possible in order todefine the nature and scope of the problem involved;

(d) The technical assistance furnished shall:(i) Not be a means of foreign economic and poli-

tical interference in the internal affairs of the countryconcerned and not be accompanied by any considera-tions of a political nature;

(ii) Be given only to or through Governments;(iii) Be designed to meet the needs of the country

concerned; and(iv) Be provided as far as possible in the form

which that country desires;3. Avoid distinctions arising from the political struc-

ture of the country requesting assistance, or from the raceor religion of its population.

Standards of Work and Personnel1. The highest professional competence should be

maintained in all services undertaken by the participatingorganizations in rendering technical assistance to re-questing countries.

2. Experts should be chosen not only for their tech-nical competence, but also for their sympathetic under-standing of the cultural backgrounds and specific needsof the countries to be assisted and for their capacity toadapt methods of work to local conditions, social andmaterial.

3. Adequate preparation of experts should be pro-vided before assignments are undertaken; such prepara-tion should be designed to give understanding of thebroad objectives of the common effort and to encourageopen-mindedness and adaptability.

4. Experts and groups of experts visiting a countryshould not engage in political, commercial, or any activ-ities other than those for which they are sent. The scopeof their duties should be strictly defined in each case byagreement between the country requesting assistance andthe organizations providing assistance.

5. Even when allocations are committed, projectsshould not be commenced unless properly qualified ex-perts and assistants have been secured and trained.

6. All Governments should be invited to co-operatein the securing and selecting of qualified staff and tofacilitate, when necessary, arrangements for their tem-porary release and for their continued employment onreturn.

7. Universities, technical schools, foundations, researchinstitutions and other non-governmental sources fromwhich experts may be drawn should be encouraged torelease experts for field assignments under the pro-gramme, to arrange for their continued employment onreturn and to undertake special research projects onproblems related to economic development.

Participation of Requesting GovernmentsThe requesting Governments should be expected to

agree:1. To facilitate the activities requested from the par-

ticipating organizations by assisting them to obtain thenecessary information about the problems on which theyhave been asked to help, such information to be limitedstrictly to questions directly related to the concrete re-quests for technical assistance; and, whenever appropri-ate, to facilitate their contacts with individuals andgroups, in addition to Government agencies, concernedwith the same or related problems;

2. To give full and prompt consideration to the tech-nical advice they receive as a result of their co-operationwith the participating organizations in response to therequests they have initiated;

3. To undertake to maintain or set up as soon aspracticable such governmental co-ordination machineryas may be needed to ensure that their own technical,natural and financial resources are mobilized, canalizedand utilized in the interest of economic development

11 Although the word "programme" is employed in thisconnexion, it is not contemplated that all projectsdescribed in the "programme" would or should be exe-cuted; rather what is contemplated is that the UnitedNations and the specialized agencies should hold them-selves ready to render to the under-developed countries,at their request, the types of technical services whichare described in the "programme" and which are de-signed to assist them in their economic development.[Footnote in original document.]


designed to improve the standard of living of theirpeoples and through which the effective use of any majorinternational technical assistance resources could beassured;

4. Normally to assume responsibility for a substantialpart of the costs of technical services with which theyare provided, at least that part which can be paid in theirown currencies;

5. To undertake the sustained efforts required for eco-nomic development, including continuing support andprogressive assumption of financial responsibility for theadministration of projects initiated at their request underinternational auspices;

6. To publish information or provide for study andanalysis material suitable for publication regarding theresults of the technical assistance rendered and theexperience derived therefrom, so that it may be of valueto other countries and to the international organizationsrendering technical assistance;

7. To inform the participating organizations, when-ever technical assistance is requested, of all assistancewhich they are already receiving or requesting fromother sources in the same field of development;

8. To give publicity to the programme within theircountries.

Co-ordination of Effort1. The projects falling within the competence of

participating organizations should be carried out bythem, and the co-ordination of their work should beeffected, with due regard to their constitutions and therelations established between them.

2. The work undertaken by the participating organiza-tions under the expanded technical assistance programmeshould be such as to be suitable for integration with theirnormal work.

3. Arrangements should be made for requests forassistance within the sphere of two or more organizationsto be handled jointly by the organizations concerned, andthere should be co-ordination among the participatingorganizations at the planning level before commitmentsby them are entered into with Governments.

4. Technical assistance activities which are not at thepresent time the special responsibility of any specializedagency, such as certain aspects of industrial development,manufacturing, mining, power, and land and water trans-port, should be undertaken by the Secretary-General ofthe United Nations.

5. All requests for technical assistance which involvecomprehensive or regional development projects fallingwithin the purview of more than one organization shouldfirst be submitted to joint examination by the organiza-tions concerned; such requests should be directed to theSecretary-General of the United Nations.

6. Programmes of training should be the subject ofco-operative action among participating organizations.

Concentration and EconomyWithin the wide range of activities envisaged, the

participating organizations should practise, especially inthe initial stages of their programmes, concentration ofeffort and economy. The participating organizationsshould also ensure the fullest use of any existing facilities.

Selection of Projects1. The participating organizations, in deciding on a

request for assistance, should be guided solely by theCharter of the United Nations, by the principles of theUnited Nations programme for technical assistance and

by appropriate resolutions of the General Assembly andof the Economic and Social Council. The services en-visaged should aim at increased productivity of materialand human resources and a wide and equitable distribu-tion of the benefits of such increased productivity, so asto contribute to the realization of higher standards ofliving for the entire populations. Due attention andrespect should be paid to the national sovereignty andnational legislation of the under-developed countries andto the social conditions which directly affect their eco-nomic development. Requests for technical assistancemay therefore be approved which will help Governmentsto take account of the probable consequences of proposedprojects for economic development in terms of the wel-fare of the population as a whole, including the promo-tion of full employment, and also to take account ofthose social conditions, customs and values in a givenarea which would directly influence the kinds of eco-nomic development that may be feasible and desirable.Similarly, requests may also be approved for technicalassistance to Governments desiring to undertake thespecific social improvements that are necessary to permiteffective economic development and to mitigate thesocial problems—particularly problems of dislocation offamily and community life—that may arise as a con-comitant of economic change. As in any national pro-gramme for economic development any increased servicesundertaken by the Government can be maintained, inthe long run, only out of national production, specialattention should be given in timing and emphasis toactivities tending to bring an early increase in nationalproductivity of material and human resources.

2. The participating organizations, when reviewingand placing in order of priority the requests which theyreceive, should so far as possible ensure that due regardis paid to the urgency of the needs of the various appli-cants and to their geographical distribution.

3. In response to requests from Governments, es-pecially in connexion with plans for economic develop-ment, special consideration should be given to resourcesand methods of financing the development. It is recom-mended therefore that participating organizations, beforeundertaking work of an extensive character involvingsubstantial cost, should assure themselves that Govern-ments requesting such assistance are giving full considera-tion to major capital investment or large continuedgovernmental expenditure which may be needed as aresult of this technical assistance. Governments may alsorequire advice concerning conditions and methods offinancing appropriate to such projects. Close co-operationamong the participating organizations in responding torequests for technical assistance can facilitate the attain-ment of this objective.

4. Requests for the furnishing of equipment and sup-plies may be considered in so far as they form an integralpart of a project of technical assistance.

The Council, on 15 August, recommended by15 votes to none, with 3 abstentions, (222 (IX)-A/Annex II) that the General Assembly authorizethe Secretary-General to set up a specific accountfor technical assistance and approve the Council'srecommendations to Governments participating inthe Technical Assistance Conference regarding fi-nancial arrangements for administering contribu-tions. It recommended that the General Assembly


authorize the Secretary-General to fulfil the respon-sibilities assigned to him in this connexion andinvite all Governments to make as large voluntarycontributions as possible to the Special TechnicalAssistance Account.

(2) Views Expressed During Debate

The following major controversial issues emergedduring the Council's debate on this programme.12

A minority of members felt that, although an ex-panded programme of technical assistance for eco-nomic development of under-developed countrieswas needed, such a programme should be carriedout by the United Nations and its specialized agen-cies with such funds as are made available to themunder their regular budgets, and that the Govern-ments requesting assistance under such a pro-gramme should be prepared to bear the costs of theassistance rendered. They, therefore, opposed theestablishment of a special account for technical as-sistance for economic development, as well as thecalling of a special technical assistance conference.The members who held these views also expressed abelief that additional provisions should be incor-porated in the Council's resolution, in order toensure that Governments requesting assistance un-der this programme would not be exposed topolitical and economic pressures which might re-sult in making them subject to political or eco-nomic exploitation for the benefit of more highlydeveloped countries. Many such provisions were,in fact, incorporated into the Council's resolution,although some proposed amendments were rejectedby the majority of the members on the groundsthat, while there was general agreement with thepoints made by these amendments, they were eitheralready embodied in the resolution in another formor were unnecessary because the substance wascovered by earlier resolutions of the Council or ofthe General Assembly.

Some members were of the opinion that theguiding principles proposed for an expanded pro-gramme of technical assistance failed to take intoaccount the need for simultaneous developmentof all branches of industry and agriculture in under-developed countries, and did not sufficiently em-phasize the importance of industrial development,including the development of heavy industry; butthe majority maintained that the statement ofprinciples was sufficiently broad and that, in anycase, the assistance was to be rendered only at therequest of Governments and in the form in whichthey requested it.

Some of the members opposed the calling ofthe special technical assistance conference becausethey believed that one of the objectives of the

conference, namely, the determination of theamount of contributions available from participat-ing Governments for the execution of the ex-panded technical assistance programme could beachieved by other means; these members also feltthat, if a conference were to be called, it should notinclude among its purposes the giving of "finalconsent to the proportionate shares of the totalamount of contributions to be allotted to the vari-ous participating organizations, and to the otherfinancial arrangements" set out in the Council'sresolution.

Some members felt that the Secretary-Generalshould not be requested "to invite the Administra-tive Committee on Co-ordination to set up aTechnical Assistance Board", but that the TechnicalAssistance Board (TAB) should have been estab-lished by the Council directly in the manner inwhich the Administrative Committee on Co-or-dination was established.

Some members felt that no more than five toeight million dollars of the prospective funds tobecome available for the expanded programmeshould be automatically distributed among theparticipating organizations in accordance with thepercentages set out in the Council's resolutions,and that the remainder of the funds should bemade available to the participating organizationsin accordance with the actual experience under theprogramme. Another group of members was of theopinion that no basis at all existed for any auto-matic distribution of funds to the participatingorganizations.

Some members held to the view that the Tech-nical Assistance Committee of the Council shouldexercise general policy supervision over TAB andshould, instead of TAB, be the body to allocatesuch funds to the several participating organiza-tions as were not allocated by the Council's resolu-tion.

The majority of the members of the Council,however, took the view that the expanded pro-gramme of technical assistance for economicdevelopment of under-developed countries shouldbe financed by funds voluntarily paid into a specialaccount by as many countries as possible who aremembers either of the United Nations or of anyone of the specialized agencies; that, although theGovernments requesting assistance should bear aslarge a share as they can of the costs of this assist-ance, it should also be available to them if theyare unable to pay for it; that a special technicalassistance conference was needed in order to makeit possible for Governments who were members

12 For details as to views held by specific delegations,see pp. 448-51.


of specialized agencies but not Members of theUnited Nations to participate fully in the actionsconcerning their contributions and to approve thefinancial regulations under which their contribu-tions would be expended; that, in order to ensurethe full co-operation of as many specialized agen-cies as possible, as well as to facilitate the integra-tion of the work of each organization under theexpanded programme with its normal operations,TAB should be established by inviting the Admin-istrative Committee on Co-ordination to set it up;that the experience of the specialized agencies in ex-tending technical assistance, as well as the desir-ability of enabling them to plan ahead, warrantedthe automatic distribution of as large a share of theprospective funds as is set out in the Councilresolution; and that it was both undesirable andimpracticable to assign to the Technical AssistanceCommittee of the Council, which consisted ofgovernmental representatives, functions whichwould tend to interfere with the day-to-day execu-tion of the tasks which had been assigned to TAB.Some of the members who held the latter viewsuggested that the Technical Assistance Committeeof the Council should be convened only twice ayear and at the same time as the Council.

In addition to the resolution described above,the Council, on 14 August, adopted by 15 votes tonone, with 3 abstentions, resolution 222 (IX) B,which took into account the fact that a number ofregional organizations which are not integral partsof the United Nations were in the process of ex-panding technical assistance services similar tothose contemplated by the United Nations and thespecialized agencies in connexion with their ex-panded programme of technical assistance. Thisresolution authorized the Secretary-General, in con-sultation with the specialized agencies concerned,to enter into negotiations with the appropriateofficers of inter-governmental regional organiza-tions engaged in the development of technicalassistance programmes, "with a view to ensuringthe desirable co-ordination for the carrying out ofthe technical assistance activities of the organiza-tions concerned". The resolution further requestedthe Secretary-General"to report to the Council on the results achieved so as toenable it, when more experience is available, to examinethe advisability of establishing other forms of relation-ship between the United Nations and the specializedagencies on the one hand, and the regional organizationson the other".

d. DISCUSSION BY THE GENERAL ASSEMBLYAT ITS FOURTH SESSION

During the Assembly's fourth regular session,the expanded programme of technical assistance

for economic development was considered at the88th to 98th meetings of the Second Committee,from 29 September to 14 October 1949, and atthe 24lst and 242nd plenary meetings on 16 No-vember 1949.

(1) Discussions in the Second Committee

During the general debate, the Economic andSocial Council's draft resolution on the expandedprogramme was commented upon favourably byall representatives who participated, even though,in the view of some of them, the proposals madecontained certain weaknesses. Most of these repre-sentatives considered this resolution a major stepforward in the field of international action towardthe promotion of economic development of under-developed countries. They also expressed the hopethat the Council's proposal might be adopted unan-imously by the General Assembly.

Many representatives, among them those ofArgentina, Iraq, Mexico, Saudi Arabia, Poland,Turkey, the United States, the Union of SouthAfrica and the USSR, stressed the importance ofthe principle that the technical assistance shouldbe rendered by the participating organizationsonly in agreement with the Governments con-cerned and on the basis of requests received fromthem. The representatives of these countries alsoreferred to the "guiding principles" adopted bythe Economic and Social Council and contained inAnnex I of Council resolution 222 (IX) A, towhich these representatives expected the UnitedNations to adhere very rigidly. They drew par-ticular attention to one of the "guiding principles"which states that the technical assistance furnishedshall "not be a means of foreign economic andpolitical interference in the internal affairs of thecountry concerned and not be accompanied by anyconsiderations of a political nature."

Several representatives, including those of Po-land and the USSR, felt that it was desirable todraw a clear line of distinction between the ex-panded programme of the United Nations and theactivities of the United States Government underits programme known as "Point Four". In theirview, the United States programme of technicalassistance was a means of making sure that un-productive United States capital was invested.American capitalists were asking equality of treat-ment with domestic capital which would result inthe domination of the market by American capi-talists. The United Nations programme shouldprovide for the necessity of protecting the economyof under-developed countries against the competi-tion of industrial countries.

The representatives of Brazil, Canada and


Sweden emphasized the direct relationship be-tween economic development and world trade.The representative of Canada pointed out that theindustrial and general economic development ofunder-developed countries would improve oppor-tunity for employment, enhance the productivityof labour, increase the demands for goods andservices, contribute to economic balance, expandinternational trade, and raise levels of real income.The representative of Brazil commented on theunfavourable long-term trend of the terms oftrade of under-developed countries, holding theview that an improvement of these terms of trademight, under certain conditions, provide a satis-factory alternative to the financing of imports ofcapital goods needed for developmental projectsby means of foreign investment.

Some representatives, among them the repre-sentatives of Chile, and the Philippines, pointedout that, under the expanded programme, dueattention should be paid to technical assistance,both in the fields of industry and of agriculture,in order to strengthen national economies withoutsubordinating their development to the interestsof the industrialized countries; the representativeof Chile also considered that industrial develop-ment was essential to agricultural development.Several representatives placed particular emphasison technical assistance leading to industrializationof under-developed countries and to diversificationof their production structure. The representativeof Lebanon stated that the basic problem was thatof increasing production and that he felt thattechnical assistance in the field of manufacturingindustries was therefore of primary importance.The representative of Egypt pointed to wide fluc-tuations in the prices of primary products andhence in the national income of countries produc-ing such products; the fluctuations, he felt, ob-structed their plans for economic development.He therefore believed that technical assistancedirected towards diversification of productionwould promote the structural stability of the na-tional economies of under-developed countries.The representative of Egypt also believed thattechnical assistance could help under-developedcountries in increasing the pace of industrializa-tion, since slow industrial development could notameliorate the living conditions in those countriesand could not absorb the normal increase in theworking population and the excess agrarian popu-lation.

The representatives of the USSR, the Byelorus-sian SSR, the Ukrainian SSR and Yugoslavia con-sidered that technical assistance furnished to under-developed countries should be determined by the

needs of those countries and not by the require-ments of the world market, and that technicalassistance should be directed to assist in the crea-tion and development of national industries, in-cluding heavy industries; the representative of theUSSR referred in this connexion to the statement,contained in the report of the Secretary-General onTechnical Assistance for Economic Development(E/1327/Add. 1, chapter III), concerning the re-quirements of the world market and productivecapacities of more developed countries, which inhis opinion was incorrect. The afore-mentionedrepresentatives, together with the representatives ofCuba and Guatemala, also stressed the need forprotection of infant industries in under-developedcountries.

The representative of Venezuela laid stress onthe need for adequate administrative machinerywithin a country receiving technical assistance, inorder to ensure full utilization of internationaltechnical aid.

Concerning the terms of reference of the Tech-nical Assistance Committee, some of the speakers,among them the representatives of France, India,Poland, Belgium, New Zealand and Australia, ex-pressed the view that the Technical AssistanceCommittee, as an inter-governmental body, mightbe more useful if it were given a greater and moredirect responsibility with respect to planning thetechnical assistance programme and the distribu-tion of unapportioned funds from the special ac-count. On the other hand, several representatives,among them those of the United Kingdom andthe United States, believed that it was a wise de-cision to have the operating responsibility for theprogramme placed with the non-political, profes-sional staffs of international organizations whichwere represented on the Technical AssistanceBoard.

Regional co-operation with respect to technicalassistance projects was advocated by the representa-tives of Bolivia, Canada, France, Poland and Peru.The representative of Uruguay stressed the im-portance of the co-ordination of the various na-tional economies as a factor of fundamentalimportance in permitting intensified economicdevelopment without risk.

The need for sympathetic understanding of spe-cific environmental conditions of a country receiv-ing technical assistance from experts providedunder the expanded programme was stressed byseveral representatives, among them those of Chinaand New Zealand; the representative of China alsoemphasized the importance of adequate training ofsuch experts.

Regarding contributions for the expanded pro-


gramme, the representatives of Argentina, Aus-tralia, Belgium, Chile, Denmark, France, India,Liberia, Mexico, the Netherlands, New Zealand,Norway, Pakistan, Peru, Sweden, the United King-dom, the United States, Uruguay and Venezueladeclared the intention of their Governments tocontribute at an appropriate time to the specialaccount to be established. Several representatives,among them the representatives of Australia, Can-ada and the United States, referring to the widesupport which the technical assistance programmehad already received, urged universal participationby all members of the United Nations and of thespecialized agencies in this programme. The rep-resentative of the United Kingdom, drawing at-tention to the sacrifices which the countriescontributing to the special account would be mak-ing, urged the highest efficiency in operations andthe husbanding of resources by the adminsteringauthorities. The representative of Canada saidthat the reasonableness of the programme for thefirst year, and the possibility of its accomplishingconcrete results, would undoubtedly be factorsof great importance to national legislative bodieswhen they were considering the extent of theirparticipation.

The representatives of Argentina and NewZealand strongly supported the view that a countryreceiving technical assistance should assume re-sponsibility for a substantial part of the costs ofsuch assistance. The representative of the Philip-pines believed, however, that no country should bedeprived of technical assistance because it couldnot afford to meet a part of the expenses con-nected with it.

Several representatives held the view that itmight have been desirable to have stated explicitlyin the Council's resolution that all fields of tech-nical assistance for economic development would,under the expanded programme, be open to allmembers of the United Nations or of any special-ized agency, irrespective of whether they weremembers of the particular participating organiza-tion which was operating in the field in which theassistance was sought.

With respect to the distribution of contributionspaid into the special account, the representativesof Australia, Belgium, Canada, Denmark, Ecuador,India, New Zealand and the United States stressedthe fact that the percentages contained in Eco-nomic and Social Council resolution 222 (IX) Awere designed for the first year only, and could bemodified in the future in the light of experience.The representative of France thought that the per-centages assigned to the United Nations Educa-tional, Scientific and Cultural Organization and

the International Labour Organisation were notsufficient, and the representative of Australia em-phasized the importance of large shares beingallotted to the United Nations and to the Foodand Agriculture Organization. The representativeof Lebanon believed that, since an increase inproduction was the basic problem and since agri-culture and the manufacturing industries offeredthe broadest field for increased production, agreater part of the available funds should havebeen directed to the agencies which could contrib-ute most directly towards increased productivityin those fields, especially towards industrialization.The representatives of Afghanistan, Australia andEcuador also were of the opinion that a higherpriority should have been given to those projectswhich would most directly increase production.

The representatives of Australia, Lebanon andthe United States, inter alia, drew attention to thefact that the programme, as designed by the Eco-nomic and Social Council, was limited to technicalassistance directly related to economic development,and was not intended to assist participating organ-izations in the financing of all projects for whichthey could not obtain funds under their regularbudgets. Some speakers, among them the repre-sentatives of France, Denmark, Greece, Ecuador,the Netherlands and Peru, stressed the close con-nexion between the economic and social fields andthe desirability for adequate emphasis on technicalassistance in the social field.

When the Second Committee, at its 95th to98th meetings from 11 October to 14 October,began consideration of the draft resolution sub-mitted by the Economic and Social Council inAnnex II to its resolution 222 (IX) A,13 it alsohad before it three amendments submitted byPoland, Mexico and Australia (A/C.2/L.5). Sub-sequently, an amendment was submitted by Leb-anon (A/C.2/L.6) in substitution for that putforward by Mexico.

The representative of Poland, supported in prin-ciple by a number of other representatives, includ-ing those of India, Greece and New Zealand,wished to place greater emphasis on the role of theTechnical Assistance Committee (TAC) in rela-tion to the Technical Assistance Board (TAB),and to make it entirely clear that, if the TACshould wish to make recommendations on anyquestion, it had the power to do so. Poland, there-fore, had submitted an amendment (A/C.2/L.5)to this effect. Some representatives, among themthose of Brazil, Canada and the United States,were of the opinion that the proposed amendment

13See p. 446.


changed the entire structure of the organizationprovided for in Council resolution 222 (IX) A, andwould result in interference with the day-to-dayactivities of the TAB. Other representatives, in-cluding those of Australia, Belgium, France, Leb-anon, Pakistan and the United Kingdom, were ofthe opinion that the proposed amendment wassuperfluous, since the TAC already possessed thenecessary powers and the amendment would notincrease them. In the view of some of theserepresentatives, as well as the representative ofthe Netherlands, the proposed amendment mighteven be dangerous, since it might give rise toconfusion or be interpreted restrictively. The repre-sentatives of Australia, India and New Zealandalso pointed out that the Polish amendment didnot confer any new powers upon the TAC. In theinterest of unanimity, the Polish representativewithdrew his amendment.

The amendment proposed by the representativeof Mexico (A/C.2/L.5) was to add after "Tech-nical Assistance Conference", in the third para-graph of the Council's draft resolution, the words"to be convened by the Secretary-General at suchtime as he finds appropriate". In the course of thediscussion of the third paragraph, which called onthe General Assembly to note the Council's decisionto call a Technical Assistance Conference for thepurpose of negotiating contributions to the pro-gramme, and the Mexican amendment thereto, anumber of representatives expressed the view thatthe purpose of the Conference was wider than, andnot correctly described as, that of "negotiatingcontributions to the programme". The representa-tive of Lebanon pointed out that, since it wasagreed that the General Assembly was merely tak-ing note of a decision of the Council, it would bebetter to mention the paragraphs of resolution222 (IX) A, in which the purposes of the Confer-ence were set out; since it was also agreed thatparagraph 13 (a) of resolution 222 (IX) A alreadyprovided for discretion by the Secretary-Generalin the calling of the Technical Assistance Confer-ence, he proposed a clarifying substitute for theMexican amendment. He proposed (A/C.2/L.6)to delete in the third paragraph the words "forthe purpose of negotiating contributions to theprogramme", and to substitute the words "to beconvened by the Secretary-General in accordancewith the terms of paragraphs 12 and 13 of theCouncil resolution". The representative of Mexicothen withdrew his amendment, and the amendmentproposed by the representative of Lebanon wasunanimously adopted. In answer to an inquiry asto the interpretation to be given to the amend-ment, the representative of the Secretary-General

stated that, in the absence of specific instructionsfrom the General Assembly concerning the timewhen the Technical Assistance Conference was tobe convened, the Secretary-General would seekguidance from delegations before convening it.

The purpose of the amendment proposed bythe Australian representative (A/C.2/L.5) was toimpose an obligation on the United Nations andparticipating specialized agencies to accept form-ally the principles of the Council's resolution; thisobligation was already implied in paragraph 8 ofCouncil resolution 222 (IX) A. The amendment,which was adopted unanimously, was to add in thefourth paragraph of the draft resolution, after thewords "Authorizes the Secretary-General to set upa special account for technical assistance for eco-nomic development", the words set out below:". . . to be available to those organizations which partici-pate in the expanded programme of technical assistanceand which accept the observations and guiding principlesset out in Annex I of the Council's resolution and thearrangements made by the Council for the administrationof the programme."

The resolution, as a whole, was adopted unani-mously (1064 (A)) . It was understood by theSecond Committee that the first meeting of theTAC of the Council would be called as soon aspossible after the conclusion of the Technical As-sistance Conference.


The General Assembly considered the draftresolution on an expanded programme, in conjunc-tion with the draft resolution on technical assist-ance under 200(III),14 at its 241st and 242ndplenary meetings on 16 November 1949. TheAssembly also had before it the report of the FifthCommittee which had dealt, respectively, with theproposal for an expanded programme and for acontinuation and expansion of technical assistanceunder resolution 200 (III).

The Fifth Committee had considered the SecondCommittee's recommendation for the expandedprogramme at its 221st meeting on 28 October,and reported (A/1072) that it had been informedthat an additional expenditure of $4,380 might benecessary, mainly in connexion with the costs forlocal transportation in relation to the contemplatedTechnical Assistance Conference. However, theCommittee recommended that the General Assem-bly should note that the Secretary-General hadstated that, if the Conference were held in 1949,the expenditure could be absorbed in the appro-priate section of the budget, or, if held in 1950,a transfer could probably be made. Therefore, no

14 See p. 440.


additional expenditure would be required in 1950beyond that for which provision had already beenmade in the budget estimates.

The Assembly, as a whole, spoke in favour ofthe resolutions. As the representative of Polandpointed out, an almost unprecedented degree ofunanimity in the United Nations had beenachieved. That proved, he felt, that despite existingdifferences of opinion, it was possible to reachagreement, given enough good will. Faithful appli-cation of the spirit and letter of the United NationsCharter constituted a solid basis for co-operationbetween Member States.

The representative of Chile thought that theCouncil had accomplished its task effectively andhad had the valuable collaboration of the UnitedStates, which had been given as the first practicalexpression of Point Four of President Truman'sprogramme.

The representative of China said that technicalassistance was a turning point in human history.Instead of exploitation of the weak by the stronga new outlook was being presented. The represen-tatives of India and Egypt noted the importance ofhelping economically under-developed countries toachieve economic, political and social independ-ence.

The representatives of India and Bolivia pointedout the importance of the question of technicalassistance being considered not only from thepoint of view of benefits accruing to the under-developed countries, but also from that of theeconomic prosperity of the world as a whole. Fulldevelopment of under-developed areas was alsoin the interest of industrially advanced countries.

The representative of Lebanon stated that theability of the industrialized countries to continueexpanding their economies and to maintain eco-nomic stability—thus abolishing both poverty andunemployment—depended on the achievement ofan expanding world economy in which the eco-nomic development of under-developed countrieswould play a major part.

The representative of France stated that theproposal for experts on technical assistance shouldnever lead to undue interference by more advancedcountries in the general policy of other countries.

The representative of the United States sug-gested that the Secretary-General urge all Govern-ments to seek the necessary legislative action aspromptly as possible to make funds available tothe Special Account for Technical Assistance. Healso stated that contributions to the Special Ac-count would express a willingness on the part ofparticipating Governments to share in encouragingeconomic development of others.

The General Assembly, at its 242nd meeting on16 November 1949, unanimously adopted the reso-lution on an expanded programme of technicalassistance as proposed by the Second Committee(A/1064(A)). Resolution (304(IV)) read asfollows:

"The General Assembly,"Having considered the Economic and Social Council's

resolution 222(IX) A of 15 August 1949 on an expandedprogramme of technical assistance for economic develop-ment,

"1. Approves the observations and guiding principlesset out in annex I of that resolution and the arrange-ments made by the Council for the administration of theprogramme;

"2. Notes the decision of the Council to call a Tech-nical Assistance Conference to be convened by theSecretary-General in accordance with the terms of para-graphs 12 and 13 of the Council resolution;

"3. Authorizes the Secretary-General to set up aspecial account for technical assistance for economicdevelopment, to be available to those organizations whichparticipate in the expanded programme of technicalassistance and which accept the observations and guidingprinciples set out in annex I of the Council resolutionand the arrangements made by the Council for the ad-ministration of the programme;

"4. Approves the recommendations of the Council toGovernments participating in the Technical AssistanceConference regarding financial arrangements for admin-istering contributions, and authorizes the Secretary-General to fulfil the responsibilities assigned to him inthis connexion;

"5. Invites all Governments to make as large voluntarycontributions as possible to the special account for tech-nical assistance."

4. Methods of Financing EconomicDevelopment of Under-developed

Countries

a. ACTION BY THE ECONOMIC AND SOCIALCOUNCIL AT ITS EIGHTH SESSION

At its eighth session, the Council, inter alia, hadbefore it General Assembly resolution 198(III)calling on the Council to give "further and urgentconsideration to the whole problem of economicdevelopment of under-developed countries in allits aspects", and to inform the fourth session ofthe General Assembly of the measures devisedand those contemplated for the future with regardto the problem.

In order to assist the Council, the Secretary-General had presented a note (E/1119) reviewingthe several resolutions and recommendations con-cerning economic development, which had beenadopted during 1948 by the United Nations or-gans concerned. It had been pointed out that whilethe General Assembly in the above resolution hadcentred its request upon "the whole problem in


all its aspects," the Economic and Social Council,in resolution 139 (VII) B, had suggested that theEconomic and Employment Commission shouldundertake further studies, with a view to definingthe central problems of economic developmentand making detailed recommendations for dealingwith those problems. The note also describedbriefly the relevant activities of the Economic andEmployment Commission and the Sub-Commis-sion on Economic Development.

The Council, after reviewing its own resolution139 (VII) B in the light of the views submitted bythe Secretary-General, agreed that the Economicand Employment Commission and the Sub-Com-mission on Economic Development should adhereto their present programmes of work which weredesigned to place before the Council recommenda-tions concerning specific problems of economicdevelopment (179(VIII)). It further requestedthe Secretary-General, in co-operation with thespecialized agencies, to"prepare for consideration by the ninth session of theCouncil a report setting forth methods of financing eco-nomic development of under-developed countries includ-ing methods of stimulating the international flow ofcapital for this purpose, paying due attention to questionsof a social nature which directly condition economicdevelopment."

The views expressed in the discussion have beendealt with under the expanded programme of tech-nical assistance for economic development.15 Theseviews were later elaborated in the discussion onfinance in the fourth session of the General As-sembly (see below).

b. RECOMMENDATIONS OF THE ECONOMIC ANDEMPLOYMENT COMMISSION AND ITS SUB-COMMISSION ON ECONOMIC DEVELOPMENT

The Sub-Commission on Economic Develop-ment, at its third session in March-April 1949,gave special consideration to a discussion of themobilization of domestic and foreign resourcesfor the economic development of under-developedareas. It reviewed the present methods of domesticand foreign financing, and agreed that there wasneed for some means of providing long-term in-vestments that could not be expected to yieldimmediate returns adequate to attract ordinarysources of investment. In this connexion, theSub-Commission stated that it thought the pro-posal of one of its members for the creation ofa new international agency was worthy of furtherconsideration (E/CN.1/65).

The Economic and Employment Commission, atits fourth session in May 1949, noted (E/1356)that the Sub-Commission had not submitted any

specific proposals, and expressed its view that theSub-Commission had dealt inadequately with theproblem of financing economic development. Itfurther stated that since "the data before it and theanalysis of the problem involved were insufficientto make any specific recommendations," the Coun-cil should arrange for a series of studies which theCommission described. (The Council consideredthis proposal at the ninth session and adopted itwith some amendments—see below—resolution222(IX)D).

c. ACTION BY THE ECONOMIC AND SOCIALCOUNCIL AT ITS NINTH SESSION

At its ninth session, in considering the problemof financing economic development, the Councilhad before it the report prepared by the Secretary-General on methods of financing economic devel-opment (E/1333, and Add. 1 and Corr. 1)16

which is discussed at the 73rd and 74th meetingsof its Economic Committee. The report was pre-pared in consultation with FAO, the Bank and theFund. The Secretary-General had also taken intoaccount the report of the third session of theSub-Commission on Economic Development (seeabove), as well as a brochure entitled "Inter-national Code and Fair Treatment of ForeignInvestments" prepared by the International Cham-ber of Commerce, a non-governmental organiza-tion having category A consultative status withthe Council. The report contained eight appendices,in which the materials used by the Secretray-Gen-eral were reproduced either in full or in the formof extensive excerpts. The Secretary-General's ownreport was divided into two parts—one dealingwith domestic financing, and the other with for-eign financing. Each of these parts set out thescope and emphasis of the material that had beenmade available by other organizations, as well asfurther considerations which the Secretary-Gen-eral had thought desirable to bring to the Council'sattention.

In the course of the discussion, it was generallyrecognized that the financing of economic develop-ment was no less important than technical assist-ance, but that in view of the concentration of theCouncil's work at this session on problems of tech-nical assistance, it was not possible for the Councilto give the same detailed consideration to problemsof financing. For this reason the Council, on 14August 1949, by 14 votes to 3, with 1 abstention,adopted resolution 222(IX)D, as follows:

15 See pp. 440-41.16 United Nations. Methods of Financing Economic

Development of Under-Developed Countries. (UnitedNations Publications, Sales No.: 1949.II.B.4.)


"The Economic and Social Council,"Noting the section of the report of the fourth session

of the Economic and Employment Commission dealingwith the problem of economic development, and thereport of the Secretary-General on methods of financingthe economic development of under-developed countries,

"Recognizing that the economic development of under-developed areas requires not only expanded efforts intechnical assistance, but also assurances of an expandedrate of international capital flow for the purpose offinancing economic development,

"Believing that consideration of measures to expeditesuch an expanded flow requires careful study and dis-cussion by the Council of many problems, such as theeffective mobilization of national savings, the creation ofa favourable investment climate, the fuller utilization ofexisting sources of international funds, measures to avoidextreme fluctuations in earnings of foreign exchange, andothers,

"Noting that, at the present session, important progresshas been made towards economic development throughthe formulation of a procedure for the internationaladministration of an expanded technical assistance pro-gramme, and

"Noting that, as a result of these steps taken by theCouncil, there may be a significant development over theperiod ahead in the quantity and nature of project appli-cations submitted for international financing, and that,as a result of steps initiated by individual Governments,further knowledge and experience may become availableconcerning the effectiveness, in stimulating internationalcapital flow, of such measures as guarantees and taxliberalization provisions,

"Decides that a comprehensive discussion of actionsnecessary to stimulate capital investments, whetherfinanced from domestic or foreign sources, be held ifpossible at the next session of the Council; and

"Requests the Secretary-General to prepare, in co-operation with the specialized agencies concerned, thefollowing studies, and to complete as many as is foundpossible in anticipation of the discussion at the nextsession of the Council:(a) Survey of Private Foreign Investments in Selected

Countries, the Factors Accounting for these Invest-ments, and the Existing Conditions Governing For-eign Investments

"A survey of the more important types of laws, regula-tions and economic policies affecting the operations offoreign private capital which are most prevalent incapital-exporting countries on the one side, and in less-developed countries on the other, with a view to evaluat-ing the extent to which such laws, regulations and pol-icies affect the international flow of private capital;(b) Methods of Increasing Domestic Savings and of

Ensuring their Most Advantageous Use for thePurpose of Economic Development

"A study to include an examination of the varioustypes of financial institutions already existing in the less-developed countries and those which could be most effec-tive in promoting economic development, and of thefiscal and other means whereby Governments can affectthe volume and use of domestic savings;(c) Effect of Economic Development on Volume of

Savings"An examination of the direct effects of various types

of economic development projects (e.g., heavy industryas compared with agriculture) on the volume and rate

of savings, as illustrated by the experience of selectedunder-developed countries;(d) International Clearing-House of Information on

Investment"A study of the possibilities of establishing an inter-

national clearing-house of information by which poten-tial investing entities or private investors can be broughttogether with entities or private persons requiring fundsin under-developed countries."

Some members expressed the view that theresolution appeared to be concerned primarilywith studies bearing on the interests of foreigninvestors and tended to ignore those of the under-developed countries; they did not, however, offeramendments.

There was some discussion as to the existenceof a gap in facilities for public foreign financingof economic development and on the desirabilityof setting up a new international agency, or ofincreasing the powers and functions of the Inter-national Bank for Reconstruction and Develop-ment, so as to enable it to meet the suggestedneeds. The Council rejected the proposal of itsEconomic Committee inviting the Economic andEmployment Commission"to give further consideration to the question of whetherthere are any gaps in the external public financing ofeconomic development of under-developed countries andwhether the amplification of the functions and powers ofthe International Bank or the creation of a new agencywould help fill such gaps if they exist."

A similar proposal had been rejected by theEconomic and Employment Commission at itsfourth session. Several Council members felt, how-ever, that the Commission had not examined theproblems inherent in the suggestion in sufficientdetail. Others thought that it was neither useful norconstitutionally correct to ask the Economic andEmployment Commission to engage in discussionsinvolving the terms of reference of a specializedagency.

d. CONSIDERATION BY THE GENERAL ASSEM-BLY AT ITS FOURTH SESSION

At its fourth session, the Assembly consid-ered the problems of economic development (in-cluding the question of methods of financingeconomic development) at the 88th to 95th and98th to 103rd meetings of the Second Committee,from 29 September to 11 October, and 14 to 22October, and at the 24lst and 242nd plenary meet-ings on 16 November 1949.

(1) Discussion in the Second Committee

During the general debate, at the 88th to 95thmeetings of the Second Committee, the discussionof the problem of economic development, apart


from technical assistance, centred largely on thequestion of financing economic development. Sev-eral representatives, including those of Australia,Belgium, France, New Zealand, the United King-dom and the United States, expressed the viewthat the Economic and Social Council had actedwisely in not examing the various aspects of eco-nomic development simultaneously, and that theGeneral Assembly would be in a better positionto consider the problem of financing economicdevelopment after it had had the benefit of theviews and recommendations of the Council.

Many representatives, among them those ofAfghanistan, Bolivia, Brazil, Chile, Ecuador,Greece, Haiti, India, Lebanon, Peru, the Philip-pines and Syria, considered the problem of financ-ing as a crucial issue in economic development,and indicated that, in the absence of adequatecapital, improved techniques alone could notsubstantially increase production in the under-developed areas and contribute to raising thestandards of living of their people. The representa-tives of Chile and Syria felt that new approachesmust be found for directing capital to under-developed areas, on the ground that internationaleconomic co-operation could not wait until favour-able conditions for private investment existed.

While there was general agreement that thefinancing of economic development should be car-ried out mainly with domestic resources, somerepresentatives pointed out that, owing to the lowlevel of productivity of under-developed countriesand the consequent inadequacy of the current vol-ume of domestic savings, such a method of financ-ing did not offer much hope for extensive develop-ment in the near future. The representative ofBrazil, while stressing the prominent part whichthe flow of private capital should serve in the pro-cess of economic development of under-developedareas, believed that loans and credits by Govern-ments and by international agencies would con-tinue to be required for long-term developmentprojects. The representative of Yugoslavia heldthe view that the United Nations had an impor-tant role to play in improving the methods of in-ternational financing which, he felt, should be themain source of foreign aid to under-developedcountries. The representative of the United Statesemphasized that private investments must con-stitute the principal source of United States cap-ital for economic development abroad.

The need for developing favourable conditionsfor the investment of foreign capital was stressedby many speakers, including the representatives ofBolivia, Brazil and the Netherlands. The repre-sentatives of Brazil, India and Lebanon referred

to the need for mutual concessions in the fieldof foreign investments by capital-exporting andcapital-importing countries.

Several representatives, among them the repre-sentatives of the Byelorussian SSR, Poland and theUSSR, cautioned against the use of foreign in-vestments to serve political purposes or the ex-clusive interests of capital-exporting countries.The representative of Saudi Arabia declared thatunder-developed countries must not be mere out-lets for manufactured goods from more highlydeveloped countries.

During the discussion of problems of economicdevelopment at the 98th to 103rd meetings ofthe Second Committee, several draft resolutionsand amendments were submitted.

The representative of Chile submitted a draftresolution (A/C.2/L.2 and Rev.l to 3), regard-ing the over-all work of the Economic and SocialCouncil in the field of economic development aris-ing out of General Assembly resolution 198(III)(see above), and referring particularly to thefinancing of economic development. During thediscussion, the representative of Chile acceptedseveral amendments, including those suggested bythe representatives of the Philippines and Ecuador,which, respectively, called on the Council to reporton recommendations for future plans as well ason measures already taken, and to pay attentionto questions of a social nature which directly con-cern economic development.

The Committee unanimously adopted (A/1064-(C) the revised draft resolution, noting the meas-ures already devised by the Council and its organs,as well as the arrangements made by the Councilto give detailed consideration to other questionsof development at an early date, and looking for-ward, specifically, to receiving the Council's studiesand recommendations for international action con-cerning the urgent problems of financing economicdevelopment. It further recommended that theCouncil (a) continue to give urgent attention tothe problems of economic development of under-developed countries, giving due consideration toquestions of a social nature which directly condi-tion economic development, (b) stimulate itscommissions and specialized agencies to give simi-lar urgent action to these problems, and (c) in-clude in its annual report to each regular sessionof the General Assembly a special chapter on themeasures being taken to promote development, to-gether with recommendations for further improve-ment, if necessary, of such measures (see below,resolution 306(IV)).

The representative of Uruguay submitted adraft resolution (A/C.2/L.3) on the importance


of the principle of co-ordination between countrieson planning measures for the promotion of eco-nomic development. This was supported by sev-eral representatives. Others, however, consideredthat it might be misinterpreted to involve inter-ference in a country's internal affairs. The USSRrepresentative opposed the draft resolution on theground that it would be detrimental to the eco-nomic development of under-developed countries.Doubts were also expressed as to who was to dothe co-ordination envisaged. In view of the diffi-culties of interpretation and in the interests ofmaintaining unanimity, the representative of Uru-guay later withdrew his draft resolution.

The Committee also considered a Cuban draftresolution (A/C.2/L.4) regarding the influenceof commercial policy on economic development.This was later revised (A/C.2/L.4/Rev. 2 andRev. 3/Corr.1) to include, among other things, thesubstance of a joint amendment submitted bythe Philippines, Saudi Arabia, Iraq and Syria (A/-C.2/L.11), calling on the Council to prepare andconsider studies which would indicate the in-fluence of international economic and commercialpolicies which might accelerate or retard the proc-ess of economic development. The joint amend-ment further recommended that Member Nationsshould follow commercial policies which wouldpromote economic development.

A Polish amendment (A/C2/L.13) was adoptedby 16 votes to 15, with 13 abstentions, which addedthat the Council should take". . . into account the discussion, which took place in theSecond Committee of the fourth regular session of theGeneral Assembly during the consideration of the pres-ent resolution, and, in particular, the opinions about thenecessity of the protective customs tariffs as an efficientfactor in the creation and development of the nationalindustries of under-developed countries."

Several representatives, including those of Can-ada, France, Denmark, the Netherlands and theUnited States, expressed their disappointment andsaid that they had hoped to vote for the Cubanproposal in the form in which it appeared priorto the adoption of the Polish amendment and thuscontribute to the unanimous support of the Cubanresolution.

The amended draft resolution (A/1064(D))was adopted by the Second Committee by 30 votesto 12, with 1 abstention.

It proposed that the General Assembly shouldrecommend that the Economic and Social Coun-cil, in its forthcoming work and studies on eco-nomic development, pay further attention to suchquestions of international economic and commer-cial policy as might influence the process of devel-opment of the economies of under-developed coun-

tries, with a view to making recommendations tothe General Assembly, taking into account the dis-cussions in the Second Committee, particularlythe opinions about the necessity for protectivecustoms tariffs (see below, resolution 307(IV)).


The General Assembly discussed the report ofits Second Committee (A/1064) at its 24lst and242nd meetings on 16 November. On the ques-tion of financing economic development, it had be-fore it resolution A/1064 (C) and (D).

The representative of Chile stated that privateinvestment was essential and desirable on condi-tion that it respected the sovereignty of countriesand tended to increase their productivity. Boththe representatives of Chile and the United Statesstated that there was an urgent need for it. Therepresentative of India felt that the importanceof aid by means of investment capital in all schemesof economic development was rightly emphasized.While each country must do its part, it was ob-vious that domestic resources were not sufficient.

The representative of Lebanon pointed out thattechnical assistance was only a first step in thevast problem of investment. Unless the Councilcould provide correct solutions to the other aspect—financing of economic development—the pro-gramme of technical assistance would fail to pro-duce the results expected. There was general agree-ment that capital resources of under-developedcountries should be mobilized for productive in-vestment, but it was also recognized that those re-sources were small and that other sources shouldbe found for capital investment from developedcountries. The International Bank provided ascope for large-scale investment but had done littlein helping under-developed countries. It could domuch more by mobilizing available capital in theadvanced countries and expanding its developmentloans to meet the numerous requests it received.Concerning the availability of private capital, hehad doubts about the ability or desire of privatecapital to meet the needs. New concepts and newarrangements would be needed.

The representative of Bolivia pointed out thatthere was a need for fixed fundamental principleslikely to strengthen confidence in a new era ofcapitalism characterized by social functions, with-out prejudice to private interests which were stillthe mainspring of economic development. He sug-gested that the guiding principles forming theframework for development for technical assist-ance might constitute the basis of a conventionopen to the voluntary accession of States that wouldsupplement the programme of technical assistance


and would eventually lead to a study of the eco-nomic opportunities to be financed with availablecapital.

The representative of the USSR, in answer tothis, said that the United Nations consisted ofStates, and it was not its task to protect the inter-ests of the large capitalist undertakings. Con-cerning Point Four of President Truman's pro-gramme and the United Nations programme, PointFour was directed against political and economicindependence of under-developed areas, while theaim of the United Nations programme was to helpsuch countries strengthen their national economiesso as to enable them to achieve economic and po-litical independence and raise their standards ofliving in accordance with the Charter.

The representative of Poland felt that financingwas the most important issue and that the prin-ciples adopted at the Council's ninth session shouldunderlie all current and future activities of theUnited Nations.

At its 242nd meeting on 16 November 1949,the General Assembly unanimously adopted theresolution recommended by the Second Committee(A/1064 (C)). Resolution 306 (IV) read asfollows:

"The General Assembly,"Having considered the report presented by the Eco-

nomic and Social Council in accordance with the pro-visions of General Assembly resolution 198(III) of 4December 1948,

"1. Notes the measures already devised by the Council,its commissions and the specialized agencies regardingthe economic development of under-developed countriesand regions, especially those in the field of technicalassistance for economic development;

"2. Takes note of the arrangements made by theCouncil to give detailed consideration at an early sessionto other questions related to the economic developmentof under-developed countries and regions;

"3. Looks forward specifically to receiving the Coun-cil's studies of and recommendations for internationalaction concerning the urgent problems of the financing,in all its aspects, of economic development in under-developed countries;

"4. Recommends that the Economic and Social Coun-cil:

"(a) Continue to give urgent attention to the prob-lems of economic development of under-developed coun-tries, giving due consideration to questions of a socialnature which directly condition economic development;

"(b) Stimulate its commissions and the specializedagencies to give similar urgent attention to those prob-lems;

"(c) Include in its annual report to each regularsession of the General Assembly a special chapter on themeasures being taken to promote economic development,together with the recommendations for the further im-provement, if necessary, of such measures."

In discussing resolution D concerning economicdevelopment and international commercial policy

proposed by the Second Committee, a discussionagain arose over the phrase that had been addedto the draft resolution on the motion of Polandin the Committee.17

Those opposing this addition felt that the state-ment was superfluous and meaningless, and thatit would impede the operation of the HavanaCharter, which dealt with the problem. The textof the resolution was only complicated by the un-ilateral presentation of a problem both complex,and, in the final analysis, already settled. The rep-resentative of the Netherlands pointed out that itwas no longer open to the General Assembly toadvance, as a new general rule of conduct, thatspecial governmental assistance might be requiredto promote the establishment, development or re-construction of particular industries, and that inappropriate circumstances the grant of such assist-ance in the form of protective measures was jus-tified. Through the Havana Charter and the Gen-eral Agreement on Tariffs and Trade, most Mem-bers of the United Nations had already acceptedexplicit obligations covering the problem of com-mercial protection for economic development.

Those in favour of retaining the paragraph dis-agreed with this view and stated that the prin-cipal objective of the Havana Charter was theliberation of international trade. The promotion ofeconomic development appeared at best a minorobjective. Furthermore, it seemed hardly conceiv-able that a mild statement of the universally ac-cepted principle—that the protection of infantindustries constituted legitimate grounds for theimposition of tariffs — could arouse so muchopposition.

This part of the resolution was voted on sepa-rately and rejected in the plenary meeting by avote of 20 in favour to 20 against, with 14 ab-stentions. The General Assembly, at its 242ndmeeting on 16 November, unanimously adoptedresolution 307 (IV), as follows:

"The General Assembly,"Considering that the tasks hitherto entrusted to the

Economic and Social Council, the Secretary-General andthe specialized agencies in connexion with the economicdevelopment of under-developed countries have beenconcentrated especially on the study of problems con-nected with technical assistance and with the financingof economic development,

"Considering that experience has shown that manyaspects of international economic and commercial policyexercise a powerful influence on the economic develop-ment of under-developed countries,

"Recommends that, in the Economic and Social Coun-cil's forthcoming work and studies on economic develop-ment, further attention should be paid to such questionsof international economic and commercial policy as may

17 See p. 456.


influence the process of development of the economiesof under-developed countries, with a view to makingrecommendations to the General Assembly."

5. Publications

The following reports had been issued as ofDecember 1949: Economic Development in Se-lected Countries, Vol.1;18 Technical Assistance forEconomic Development Available through theUnited Nations and the Specialized Agencies;19

Technical Assistance for Economic Development(Plan for an Expanded Co-operative Programme

through the United Nations and the SpecializedAgencies);20 Inter-Relationships of the Social andEconomic Activities of the United Nations RecentAction, Taken in the Field of Economic Develop-ment of Under-Developed Countries;21 Interna-tional Capital Movements During the Inter-WarPeriod;22 Methods of Financing Economic De-velopment' in Under-Developed Countries;23

Relative Prices of Exports and Imports of Under-Developed Countries;24 and Methods of IncreasingDomestic Savings and of Ensuring Their Most Ad-vantageous Use for the Purpose of EconomicDevelopment.25

B. ECONOMIC STABILITY AND FULL EMPLOYMENT

The subject of full employment was not on theagenda of the third session of the General As-sembly in September-December 1948. However,the question was considered by the Second Com-mittee in its discussion of the report of the Eco-nomic and Social Council and especially of the re-port of the Department of Economic Affairs ofthe Secretariat, Economic Report. Salient Featuresof the World Economic Situation 1945-1947,26

which had been presented as background informa-tion.

Meanwhile, in July 1948, the Secretary-General,in implementation of Council resolution 104 (VI),had requested27 information from Governments(including associated participating members of allregional economic commissions) concerning theiraction to achieve or maintain full employment andeconomic stability, and concerning any availableplans to prevent a future decline. Reports hadalso been requested from appropriate specializedagencies on plans and available resources to assisttheir members in preventing a decline in employ-ment and economic activity. The replies of theGovernments and specialized agencies were in-cluded in the Secretary-General's report, Nationaland International Action to Achieve or MaintainFull Employment and Economic Stability (E/-1111 and Add. 1 to 8), which was made availableto the Council at its eighth session in Februaryand March 1949. These documents were consideredby the Council in connexion with its agenda itementitled "The world economic situation".28

1. Discussion by the Economic andEmployment Commission

The first discussion of the subject (as a formalagenda item) during the period under review took

place at the third session of the Sub-Commissionon Employment and Economic Stability in April1949, and at the fourth session of the Economicand Employment Commission in May 1949 (E/-1356). The report of the third session of the Sub-Commission on Employment and Economic Stabil-ity (E/CN.1/66) formed the basis of the Com-mission's discussion. The Commission also con-sidered the organization of the Commission andits Sub-Commission on Employment and EconomicStability, in accordance with arrangements notedby the Council at its seventh session (A/625).

The report of the Sub-Commission was devotedmainly to national and international measures tomaintain full employment. The Commission ex-pressed regret that the Sub-Commission had beenunable to submit a significant report on the prob-lem of recognizing incipient downturns in eco-nomic activity, despite the directive given to theSub-Commission to give particular attention tothis problem. At the same time, the Commissionrecognized the special difficulties involved in thisproblem, as well as its importance in relation tothe formulation of sound domestic and interna-tional policies for the maintenance of full em-ployment.

The Commission did not accept the Sub-Com-mission's proposal that international consultationsshould be held to review the activities and poli-

18 United Nations Publications,19 United Nations Publications,20 United Nations Publications,21 Mimeographed.22 United Nations Publications,23 United Nations Publications,24 United Nations Publications,25 Mimeographed.26 United Nations Publications,27 See Yearbook of the United

520-21.28 See pp. 466-67.

Sales No.: 1948.II.B.1.Sales No.: 1948.II.B.2.Sales No.: 1949.II.B.1.

Sales No.: 1949.II.D.2.Sales No.: 1949.II.B.4.Sales No.: 1949.II.B.3.

Sales No.: 1948.II.C.1.Nations, 1947-48, pp.


cies of international organizations related to theproblem of maintaining full employment, and itfelt that the desirability of a revision of the Articlesof Agreement of the International Bank for Re-construction and Development and the Interna-tional Monetary Fund was a question that couldbe dealt with only by those bodies. The Commis-sion expressed concern because of the fact thatthe replies of certain Member countries to thequestionnaire of the Secretary-General on theirplans for preventing a decline in employment andfor the maintenance of economic stability (seeE/1111 and E/1111/Add. 1 to 8) indicated thatthey would impose restrictions on imports in theevent of a serious decline in employment. TheCommission expressed the view that expansiverather than restrictive measures should form thebasis for counteracting any threatened declines inthe levels of production and of employment.

In view of the material available and the lim-ited time at its disposal, the Commission was un-able to present to the Council a programme ofaction to maintain high levels of production andemployment. It suggested, however, that the Coun-cil consider the advisability of making arrange-ments to convene special sessions of the Commis-sion, should the world economic situation indicatethat they were warranted.

On the matter of the organization of the Com-mission and its Sub-Commission on Employmentand Economic Stability, the Commission recom-mended the abolition of the Sub-Commission. Italso recommended that the Secretariat should assistthe Commission directly in its work and that theSecretariat should be strengthened, if necessary, byadditions to its staff, by ad hoc groups of expertsand by individual experts selected and appointedby the Secretary-General.

The Commission expressed the opinion that itspresent broad terms of reference were adequatefor the proper execution of the functions it wasintended to perform, but felt that in its endeavourto carry out its responsibilities, it had been handi-capped by certain organizational weaknesses andby inadequate contact with current developmentsand concrete problems. It therefore believed thatimprovements should be made in the relationshipof its work to that of the Council, in order thatit might assist the Council more effectively.

2. Action Taken by the Economic andSocial Council at its Ninth Session

The Economic and Social Council, at its ninthsession in July-August 1949, considered the re-

port of the fourth session of the Economic andEmployment Commission (E/1356), which cov-ered both the subjects of economic stability andfull employment and the future organization ofthe Commission and its Sub-Commission on Em-ployment and Economic Stability.29 The Councilalso had on its agenda an item (E/1332 and Add.1 and 2), "Unemployment and Full Employment",which was proposed by the World Federation ofTrade Unions, a non-governmental organizationhaving category A consultative status with theEconomic and Social Council. The Council con-sidered these items at its 328th to 330th and 332ndto 338th plenary meetings on 8 to 9 August and10 to 12 August 1949, respectively.

The procedure followed by the Council in thedebate on these items was to consider specificrecommendations in the communications from theWFTU (E/1332 and Add. 1 and 2) as well asrelated proposals made by the members of theCouncil during its discussion of the recommenda-tions in the report of the Economic and Employ-ment Commission. The communications of theWFTU listed a number of specific measures asdesirable counter-measures against unemployment,and analysed the necessity for such measures. Therepresentative of Poland proposed the adoptionof the draft resolution submitted by the WFTUin document E/1332/Add. 2. This resolution waslater rejected by the Council, at the close of thedebate, by a vote of 13 to 3, with 1 abstention,after each of the specific recommendations con-tained therein had been accepted in paragraph byparagraph roll-call votes, from which the major-ity of members abstained. (A similar resolutionwas subsequently submitted by Czechoslovakia atthe fourth session of the General Assembly.30)Other proposals submitted to the Council werelater adopted in resolutions 221(IX)D to F (seebelow).

In the debate, although all members of the Coun-cil agreed that there had been some increase inunemployment, there was considerable differenceof opinion as to the importance and the causes ofsuch increases. The majority of the members heldthe view that, while the recent decline in produc-tion and employment in some countries mightturn out to be of a temporary character, it wasdesirable that countries be prepared to deal withthe problem of unemployment promptly if thenecessity for action arose. Many of the members

29 A report on Inflationary and Deflationary Tendencies,1946-48 (United Nations Publications, Sales No: 1949.II.A.I) was also made available to the Council at thistime.

30See p. 461.


supporting this view considered that, at the firstsign of a recession, the United Nations should beprepared to review the situation and to ensure thatthe maximum use was made of the existingmachinery for inter-governmental consultation andfor the initiation of positive measures to preventa further deterioration of the situation. Somestressed the view that existing unemployment intheir countries was temporary and reflected ahealthy readjustment to peace-time conditions,while others considered that the unemployment sit-uation was already critical or becoming so in sev-eral countries, and that concrete measures shouldbe taken immediately by the Council to restorefull employment and to protect workers from theeffects of unemployment. (The views of specificdelegations are detailed in the discussion of theSecond Committee of the General Assembly; seebelow.)

At the close of the debate on this subject, theCouncil, at its 336th plenary meeting on 11 Au-gust 1949, by 11 votes to 1, with 6 abstentions,adopted resolution 221 (IX) F, originally proposedby Australia (E/1509). In this resolution, theCouncil recommended to the General Assembly theinclusion on the agenda of its fourth session of thequestion of measures for promoting full employ-ment and economic stability in accordance withthe terms of Article 55 of the Charter, and trans-mitted to the General Assembly the records of itsdiscussion and decisions on this subject. The Coun-cil also asked the Secretary-General to submit tothe Assembly the latest information on the worldeconomic situation, concentrating on factors ofimportance from the international point of view,and drawing attention to international agreementsand machinery designed to promote concertedaction to maintain full employment and counterthe international extension of any recession. Hewas also to submit the latest information on na-tional and international action to achieve or main-tain full employment and economic stability.

Resolution 221 (IX) E originally proposedjointly by France, the United Kingdom and theUnited States (E/1506), was adopted at the 336thplenary meeting on 11 August 1949, by 13 votesto 3, with 2 abstentions. In this resolution, theCouncil noted with satisfaction that many Gov-ernments had declared themselves ready to putinto effect, if conditions should warrant, suchmeasures for increasing purchasing power and forpromoting full employment as were appropriateto their national economies, and urged all Govern-ments in considering such measures to avoid asmuch as possible those which were likely to re-sult in restrictions of international trade. The

Council also invited the Secretary-General to ap-point a small group of experts to prepare, in thelight of the current world economic situation, areport on national and international measures re-quired to achieve full employment, and invitedthe Economic and Employment Commission toexamine this report and to submit to the tenthsession of the Council any comments and recom-mendations for action that seemed appropriate.In order to make these arrangements possible, theCouncil decided that the Economic and Employ-ment Commission should meet in January 1950.It requested the Secretary-General to publish ona current basis brief reports on measures taken invarious countries for the purpose of achievingfull employment; the Member Governments wereinvited to assist the Secretary-General in thismatter.

The Council also adopted, at its 333rd plenarymeeting on 10 August 1949, by 12 votes to 3,with 3 abstentions, resolution 221(IX)D, orig-inally proposed by the Economic and EmploymentCommission in the report of its fourth session(E/1356). In this resolution, the Council urgedMember Governments to give any anti-cyclicalmeasures, which they might adopt, a form whichwould promote the economic development ofunder-developed countries, and requested the Secre-tary-General, in co-operation with the specializedagencies concerned, to report to the regional eco-nomic commissions and to the Economic and Em-'ployment Commission on arrangements whichwould be conducive to international co-operationin utilizing excess productive capacity for develop-ment projects.31

The Council also considered recommendationson the organization of the Commission and itsSub-Commission on Employment and EconomicStability. After considerable discussion, it adoptedresolution 221(IX)C, at its 337th plenary meet-ing on 12 August 1949, by 9 votes to 7, with 2abstentions. In this resolution the Council decidedto postpone further consideration of the questionof organization until its eleventh session.

3. Action Taken by the GeneralAssembly at its Fourth Session

The General Assembly, at its fourth sessionfrom September to December 1949, allocated thefollowing items on its agenda to its Second Com-mittee for consideration and report:

(1) The observance and implementation of Articles55 and 56 of the Charter, and in particular of 55 a, pro-

31 See also pp. 453-54.


viding for the achievement of full employment andhigher standards of living: item proposed by Australia.

(2) Action to achieve or maintain full employmentand economic stability: item proposed by the Economicand Social Council (221 (IX)F).

a. CONSIDERATION BY THE SECOND COMMITTEE

The Second Committee considered these itemsat its 104th to 112th, 115th and 116th meetingson 24 October to 3 November, and on 14 and 22November 1949, respectively.

The Committee decided to give considerationto these items simultaneously, beginning "with adebate concerning any or all aspects of the sub-ject matter as described in the full titles" of theitems. It further decided that, while they wouldlist both items, all relevant documents should carrya single heading "Full Employment".

In connexion with these items, the Committeehad before it a note by the Secretary-General (A/-984), setting out the relevant decisions of theEconomic and Social Council and referring tothe relevant discussions, and a report by the Secre-tary-General (A/C.2/168 and Corr.1) on recentdevelopments in the world economic situation.

Two draft resolutions were submitted to theSecond Committee: one by the representative ofAustralia (A/C.2/L.14) and the other by therepresentative of Czechoslovakia (A/C.2/L.16).

The Australian draft resolution read as follows:

"The General Assembly"Notes the discussions which have taken place at the

ninth session of the Economic and Social Council onproblems of employment and economic stability;

"Approves the action of the Secretary-General in invit-ing a group of experts to report on national and inter-national measures to achieve and maintain full employ-ment;

"Declares:"1. That action by each Member designed to promote

and maintain domestic full employment in accordancewith Articles 55 and 56 of the Charter is a basic require-ment for the achievement of a stable and expandingworld economy;

"2. That, as recognized by the principles of theHavana Charter, the objectives of international com-mercial and financial agreements such as the Articles ofAgreement of the International Monetary Fund and theGeneral Agreement on Tariffs and Trade would beimpaired by failure to take action designed to maintainfull and productive employment, especially in thosecountries which are responsible for an important shareof world trade; and

"3. That a high and stable level of international in-vestment, particularly in the under-developed areas of theworld, would contribute materially to the realization ofthese objectives;

"Notes with satisfaction"1. Declarations of various Governments of their

intention to deal promptly with unemployment, andtheir recognition of the contribution which such steps

will make towards the maintenance of world-wide eco-nomic stability; and

"2. The intention of the Economic and Social Councilto study further the related questions of measures toachieve full employment and to encourage internationalinvestment;

"Recommends"1. That all Governments consider as a matter of

urgency their international responsibility under Articles55 and 56 of the Charter to take action as the need arisesdesigned to promote and maintain full and productiveemployment; and

"2. That the world economic situation be reviewedagain at the next session of the General Assembly in thelight of Articles 55 and 56 of the Charter."

The Czechoslovakian draft resolution (A/C.2/-L.16) read as follows:

"The General Assembly,"Taking note of the documents on unemployment and

full employment submitted to it by the Economic andSocial Council pursuant to the request made at the ninthsession of the Council by the World Federation of TradeUnions; and

"Considering that the number of unemployed hasincreased dangerously in a large number of countriessince the end of 1948 and the beginning of 1949;

"Decides"1. To recommend to Member States suffering from

unemployment the immediate adoption of the followingmeasures to be elaborated and applied with the effectiveparticipation of the truly representative trade unions;"(a) the introduction of a comprehensive system ofunemployment insurance, guaranteeing a decent standardof living to all fully or partially unemployed workersand covering all wage-earners as soon as they becomeunemployed and throughout the entire unemploymentperiod;"(b) the prohibition of dismissals of workers withoutagreement with the representative trade union organiza-tions concerned;"(c) the increase of the purchasing power of wage-earners and the extension of the domestic market, par-ticularly by an increase in wages and in social allowancesfor workers of all categories;"(d) the control of all activities, transactions, profits andutilization of profits of trusts and monopolies, the reduc-tion of these profits, and price control;"(e) the democratic reform of tax systems, the reductionof the proportion of revenue derived from indirect taxes,and the increase of taxes on profits;"(f) the reduction of working hours and of the intensityof work;"(g) the creation, development and extension of a broadsystem of vocational training;"(h) the initiation of large-scale programmes of pro-ductive public works for the purpose of raising thestandard of living, and promoting the cultural develop-ment of peoples;"(i) the reduction of expenditure on armaments;"(j) the establishment and development of free traderelations between countries, based on equality of rights,respect for national independence and for the free eco-nomic and political development of each country;"(k) the establishment of a relationship between indus-trial prices, the price of raw materials and agriculturalprices, which shall be suitable having regard to the


standard of living of urban and rural workers and of theunder-developed and industrialized countries;

"2. To request Member States to report to the Eco-nomic and Social Council on measures adopted to imple-ment the present recommendation, on the results of theircampaign against unemployment, and on the obstaclesto the achievement of full employment;

"3. To request the Economic and Social Council toconsider the problem of unemployment at its forthcom-ing sessions in the light of this recommendation and onthe basis of the reports received from Member States, thespecialized agencies and the non-governmental organiza-tions in Category A."

While these two proposals were considered indetail by the Committee at the end of the generaldebate, observations on them were made andamendments submitted during the general debateitself.

The fact that Members recognized under theCharter an international obligation to take meas-ures to achieve and maintain full employment, waspointed out by a number of representatives, in-cluding those of Argentina, Australia, Czecho-slovakia, Egypt, Haiti, India, Iraq, Lebanon, NewZealand, Norway, Pakistan, Poland, the UkrainianSSR, the USSR, the United Kingdom and theUnited States.

Several speakers, including those of Argentina,Australia, Canada, China, Czechoslovakia, Mexico,New Zealand, Poland and the United Kingdom,stressed that unemployment was above all a per-sonal human tragedy. It was again stressed by anumber of representatives that full employment,higher standards of living and social progress wereobjectives which were grouped together in theCharter and should be consistently treated as onesubject. Many international agreements and declara-tions in the economic and social fields, some repre-sentatives stated, recognized that to achieve theirrespective purposes, it was necessary to take meas-ures to promote and maintain full employmentand to avoid unemployment. Those wishing toemphasize this point included the representativesof Australia, the Netherlands, New Zealand, Nor-way and the United States.

Statements concerning the internal economicsituations of their countries were presented by thedelegations of Australia, Belgium, Brazil, Chile,France, Iraq, New Zealand, Norway, Sweden, theUnited Kingdom, the United States and Uruguay,among others. Some representatives also pointedout that a certain amount of transitional unem-ployment was inevitable in any country where adynamic economy existed and where labour wasfree to move from job to job. Although the vol-ume of unemployment in most of their countrieswas small, their Governments had given carefulconsideration to the kind of measures which

should be taken if there were signs of a threatto existing employment levels.

The urgency and importance of dealing withthe problem of full employment, in view of thetendency towards increased unemployment andsemi-unemployment in several countries, resultingfrom diminishing production and increasing eco-nomic difficulties, was stressed by several repre-sentatives.

The representatives of the Byelorussian SSR,Czechoslovakia, Poland, the Ukrainian SSR, theUSSR and the United Kingdom declared that theUnited Nations had so far failed to work out anyeffective and concrete proposals designed to achieveand maintain full employment, as envisaged inArticle 55 of the United Nations Charter.

The representatives of the Byelorussian SSR,the Ukrainian SSR and the USSR stated that thesocialist organization of production in their coun-tries, the steady growth of their productive powers,the elimination of the possibility of economic crisesand the constant endeavour of their Governmentsto raise the standard of living of the workers hadlong since led to the abolition of unemploymentin their countries. They also pointed out that intheir countries the right to work was embodiedin the Constitution, under which every person hadthe right to guaranteed work and to payment forhis or her work according to its quantity andquality.

While most of the speakers recognized that thethreat of mass unemployment was a direct con-cern of the relatively industrialized countries, sev-eral of them, especially the representatives of Brazil,China, Egypt, Greece, India, Iraq, Lebanon, Liberia,Mexico, Pakistan, the Philippines, Saudi Arabiaand Syria, stressed the under-employment, or theinsufficient employment, of workers in under-devel-oped countries, especially those engaged in agri-cultural production. They pointed to the need forincreasing the productivity of the workers in thosecountries as part of the problem of promotingand maintaining full employment.

Almost all the speakers referred to the needfor both national and international action to main-tain full employment, and several representatives,including those of India, the Netherlands andUruguay, underlined the point that national actionsalone could not, by themselves, ensure economicstability and full employment. The representativeof the Netherlands also stressed the danger thatreliance on national measures alone might lead toeconomic autarchy.

The interdependence of full employment andinternational trade and investment was stressed bymany representatives. Those of Egypt, Norway


and the United States also emphasized the im-portance of avoiding such measures as importrestrictions, because such benefits as might bederived from these restrictions tended to be gainedat the expense of other countries. Several repre-sentatives, including those of Australia, BrazilEgypt, Lebanon and New Zealand, expressed theirconviction that multilateral trade and convertibilityof currencies could be established and maintainedonly if full employment policies were maintainedand consumer demand was continually expanded.The representatives of Brazil and Chile pointed tothe harmful effects on the economies of their coun-tries of the declining demand for their exportsby countries which failed to maintain full employ-ment. The representative of Norway stressed theobligation of creditor countries to facilitate im-ports into their countries. The representative ofthe United States pointed to the policy of his Gov-ernment to promote measures designed to reducetrade barriers, to increase imports and to main-tain a rising level of economic activity in hiscountry.

The role of international investment, especiallyin under-developed countries, as a means ofincreasing employment in both developed andunder-developed countries, was considered byseveral representatives, including those of Australia,Brazil, Chile, Lebanon and Saudi Arabia. Thesespeakers felt that a more liberal investment policyon the part of the capital exporting countrieswould help remedy the present uneven distributionof production in the world, would raise the livingstandards in the under-developed areas, and wouldeliminate the existing disequilibrium in interna-tional trade. The representatives of Brazil andEgypt drew specific attention to the need for link-ing anti-cyclical investment measures to the pro-motion of economic development.

A large number of delegations welcomed theappointment by the Secretary-General, in accord-ance with the request of the Economic and SocialCouncil (resolution 221 (IX)E),32 of a small ex-pert group33 which was preparing, in the light ofthe current world economic situation, a report onnational and international measures required toachieve full employment. The representative ofIndia expressed the hope that, even though noneof the experts came from an under-developed coun-try, the employment problems of those countrieswould not be neglected. The representative ofSweden suggested that the group should studyproblems of unemployment in agriculture as wellas in industry, and the representative of Yugo-slavia regretted that it had not been found possibleto include an expert from a socialist country.

The representatives of the Byelorussian SSR,Czechoslovakia, Poland, the Ukrainian SSR, theUSSR and Yugoslavia declared that the proposalscontained in the draft resolution submitted by theCzechoslovak delegation corresponded to the basicinterests of the workers, and that those measureswere entirely capable of being put into effect inall democratic countries where there was unem-ployment, within the framework of the existingsocial and economic structure of those countries.

The original draft resolution (A/C.2/L.14) sub-mitted by Australia was followed by four suc-cessive revisions which were introduced in thecourse of the debate and which incorporated vari-ous amendments and suggestions proposed bymembers of the Committee (see below).

Principally as a result of proposals made byIndia (A/C.2/L.15, 17 and 28), Pakistan (A/C-2/L.15), China (A/C.2/L.17) and Syria (A/C-2/L.20 and 24), the representative of Australiaadded the present paragraphs 4 and 10 to his re-vised draft.

As a result of the proposed amendments of Chile(A/C.2/L.22 and 23), the Australian representa-tive added the portion of paragraph 7, followingthe words "the maintenance of world-wide eco-nomic stability". The representative of Chile wasalso primarily responsible for the major change inparagraph 5 (amendments A/C.2/L.22, 23 and37).

The phrase "through measures appropriate toits political, economic and social institutions;" wasadded to the end of paragraph 9, on the initiativeof the United States (A/C.2/L.25).

These amendments and others having been in-corporated into the Australian draft resolution, itwas adopted, at the Committee's 112th meetingon 3 November 1949, by 39 votes to 5, with 2 ab-stentions. (See below resolution as adopted,308(IV).)

The Czechoslovakian draft resolution was votedon in parts and by roll-call. Although the greaterpart of the resolution was adopted in these votes(in which, however, the majority usually ab-stained), the resulting resolution was rejected, alsoby roll-call, by 6 votes in favour to 21 against,with 21 abstentions.

b. RESOLUTION ADOPTED BY THE ASSEMBLYThe General Assembly considered the subject

of full employment at its 255th and 256th plenary32 See p. 460.33 This group met during October to December 1949

and prepared for consideration by the Council in 1950 areport entitled National and International Measures forFull Employment. (United Nations Publication, Sales


meetings on 24 and 25 November 1949. Underthis heading, it took up the report of its SecondCommittee (A/1126), and a draft resolution pro-posed by Czechoslovakia (A/1081).

The Australian representative, whose proposalhad formed the basis for the draft resolution rec-ommended by the Second Committee, stated thatthis resolution contained three important elementswhich were included in Article 55 of the UnitedNations Charter, (1) that full employment was auniversal objective, this not only for highly in-dustrialized countries but for under-developedcountries as well, (2) that the aim of the UnitedNations should be to achieve full employment andnot something less complete, and (3) that fullemployment was an international obligation owedby each country to the rest of the world. Themethod of obtaining full employment must bedetermined by each individual country for itself.The aim of the resolution was that the policies ofeach country should fit in with those of the others,and should help the others in the common objec-tive. The problem was linked with other problemsdiscussed by the Second Committee, such as eco-nomic development and international trade, andwith some of the international agreements intowhich many countries had entered or intended toenter.

The Czechoslovakian draft resolution (A/1081)was the same in substance as the resolution sub-mitted by Czechoslovakia to the Second Commit-tee. The representative of Czechoslovakia pointedout that the specific proposals contained in hisresolution had been adopted during the vote inthe Second Committee, although the resolution asa whole was later rejected. The unemployed andthe trade unions were looking to the United Na-tions for specific measures to meet the problemof unemployment, and his resolution containedsuch measures. The draft resolution approved bythe Second Committee had avoided all practicalrecommendations, he felt, and had been confinedto a statement of beliefs.

The representatives of the USSR and Polandalso spoke in favour of the Czechoslovakian draftresolution. They and the representative of Czecho-slovakia dwelt at some length on the serious eco-nomic situation that existed in the world, on thehigh degree of unemployment, and particularly onthe seriousness of the economic situation of theUnited States and the relationship of economicdevelopments in the United States to the situa-tion of other countries. They contrasted what washappening in capitalist economies with theirsocialist economies, in which, they said, no unem-ployment existed or could occur. The representa-

tive of the USSR traced the increase in unem-ployment in the United States since 1945. He saidthat the official figures indicated a high degree ofunemployment, but that they were deliberatelyaltered so as not to paint as black a picture asactually existed. This large amount of unemploy-ment existed in the United States at the same timethat there were advantageous effects to certainAmerican circles in the "cold war". He said theworld unemployment situation was urgent; thatunemployment was an international matter, devel-opments in a single country having implicationsbeyond that country.

Inter alia, the representatives of the UnitedStates, the Netherlands and the United Kingdomspoke in favour of the Second Committee resolu-tion. The United States and Netherlands repre-sentatives emphasized that the Second Committeehad considered the Czechoslovakian resolution ade-quately and had rejected it by a considerable major-ity. They questioned the desirability of the practiceof presenting the same resolution in one UnitedNations body after another. The United Kingdomrepresentative emphasized that the purpose seemedto be propaganda.

The United States, Netherlands and UnitedKingdom representatives also brought out that theCzechoslovakian draft resolution was the same asa resolution adopted by the World Federation ofTrade Unions and proposed by Poland to the Eco-nomic and Social Council.34 The Netherlands andUnited Kingdom representatives discussed the na-ture of the WFTU, saying that it was now a com-munist organization using its influence with theworking class for political and propaganda pur-poses, and that non-communist unions had aban-doned it. The United Kingdom representativestated that Czechoslovakia had inaccurately givencredit to the WFTU for obtaining United Nationsdiscussion of full employment; the fact was, hesaid, that the United Kingdom and Australian dele-gations had been struggling for three years to havethe problem of unemployment fully considered bythe United Nations, while the interest of theWFTU in the subject was quite new. He thereforequestioned the sincerity of the resolution.

The United States representative stated thatwhile the Czechoslovakian draft resolution hadmany elements with which the United States wasin sympathy, he felt that the preparation of specificmeasures of the kind it contained was the task ofqualified expert groups and specialized agencies,rather than of the General Assembly. Moreover,the background of the resolution and the interpre-

34 See p. 459.


ration placed upon it by its sponsors indicated thatthe introduction of the resolution itself lacked con-structive purpose.

The representatives of Poland and the USSRspoke favourably of the WFTU and of its activi-ties in promoting action for full employment.

The USSR representative spoke of the refusalof the Netherlands representative to consider anyproposal coming from delegations representingcommunist States. Such a position, he said, wouldmean the liquidation of the United Nations, sincethat Organization was the forum where all States,whatever their internal structure, met together toco-operate. He believed the United Nations to beprecisely the organ which could and should findthe means of establishing real co-operation be-tween the two regimes, on the basis of respect byeach State for the rights and interests of otherStates.

The representative of the USSR emphasizedthat unemployment was one of the most importantquestions in the field of international co-opera-tion. The representative of Poland said that therewere attempts in certain countries to do awaywith the concept of full employment, and to in-troduce instead a concept of high or optimumemployment. According to this concept, therecould be full employment at the same time thatthere were millions of unemployed. This detractedfrom the real meaning of full employment. Therepresentative of Australia also emphasized that"full employment" did not refer to anything lesscomplete, such as "high levels of employment".He added that the resolution his delegation hadproposed sought that employment be both fulland productive, so the objective was to increasethe world's supply of goods and services as wellas to reduce idleness.

The representative of Poland spoke of the suc-cess of the Second Committee in presenting a re-port on the economic development of under-devel-oped areas, which undoubtedly constituted a stepforward and which had been able to muster alarge degree of unanimity. He regretted that ithad not been possible to obtain such a report onthe question of full employment.

A number of representatives, including those ofAustralia, Egypt and the USSR, spoke of the needto emphasize the human aspects of the problemof full employment, considering it in terms of itseffects on the individual worker.

Certain representatives, including those ofEgypt and Pakistan, spoke of the importance ofunder-employment as an aspect of the over-allproblem of full employment. The association be-tween economic development and full employment

was emphasized especially by these representatives.The General Assembly, on 25 November 1949,

adopted, by 41 votes to 5, with 2 abstentions, reso-lution 308 (IV), as proposed by the Second Com-mittee (A/1126).

The resolution proposed by Czechoslovakia wasvoted on by roll-call and by paragraphs at the re-quest of the Czechoslovak delegation. A consider-able portion was adopted in these votes (in which,however, the majority abstained). The resolution,as a whole, was rejected by 5 votes in favour to 27against, with 12 abstentions.

Resolution 308(IV) read as follows:"The General Assembly"1. Notes the discussions which have taken place at

the ninth session of the Economic and Social Council onproblems of employment and economic stability, and theadoption of resolution 221 (IX) E of the Council on 11August 1949 and the resolution on unemploymentadopted by the International Labour Conference on 1July 1949;

"2. Approves the action of the Secretary-General ininviting a group of experts to report on national andinternational measures required to achieve and maintainfull employment;

"Believes:"3. That national and international action by Mem-

bers, designed to promote and maintain full employmentin accordance with Articles 55 and 56 of the Charter, isa basic requirement for the achievement of a stable andexpanding world economy;

"4. That, in addition, action is needed to overcomeunemployment and under-employment such as that aris-ing, particularly in under-developed countries, amonglarge numbers of people engaged in agricultural pursuits;and that, to this end, it is necessary, inter alia, to stimu-late the economic development of under-developed coun-tries;

"5. That the objectives of international agreementsfor the furtherance of the production and consumptionof, and the expansion of international trade in, goods onas free as possible a basis would be seriously impairedby failure to take, or by delay in taking, action designedto maintain full and productive employment especially inthose countries which have an important share in worldtrade; and

"6. That a high and stable level of international in-vestment, particularly in the under-developed areas ofthe world, would contribute materially to the realizationof those objectives;

"Notes with satisfaction:"7. Declarations of various Governments of their

intention to deal promptly with unemployment, andtheir recognition of the contribution which such stepswill make towards the maintenance of world-wide eco-nomic stability; and that the measures they have alreadyput into effect, or have under study, for increasing pur-chasing power and for promoting full employment in-clude such measures as the extension of unemploymentinsurance, the expansion of social services generally, pub-lic works programmes including low-cost housing andnatural resources development projects, measures affect-ing the level and methods of taxation, incentives for theencouragement of private capital investment; and

"8. The intention of the Economic and Social Council


to study further the related questions of measures toachieve full employment and to encourage internationalinvestment;

"9. Recommends that each Government consider, as amatter of urgency, its international responsibility underArticles 55 and 56 of the Charter to take action, as theneed arises, designed to promote and maintain full andproductive employment, through measures appropriate toits political, economic and social institutions;

"10. Requests the Economic and Social Council, dur-ing its consideration of full employment and economicdevelopment, to give attention to unemployment andunder-employment, especially in under-developed coun-tries and particularly in such critical fields as agriculture;

"11. Decides that the world economic situation bereviewed again at the next regular session of the GeneralAssembly in the light of Articles 55 and 56 of theCharter."

C. WORLD ECONOMIC CONDITIONS AND TRENDS

At the third session of the General Assembly,the representatives had before them, by way ofbackground information, a number of economicreports and surveys prepared by the Secretariat,including the Economic Report: Salient Featuresof the World Economic Situation, 1945-47.35 Inthe Second Committee, during the discussion ofthe report of the Economic and Social Council(chapter II), several representatives took the op-portunity of presenting their views on these re-ports and of recommending ways in which theymight be expanded and improved.

1. Action Taken at the Eighth Sessionof the Economic and Social Council

The Economic and Social Council, at its eighthsession in February-March 1949, had on its agendaan item entitled "The world economic situation".In the debate on this subject, use was made of theinformation contained in the Secretariat's report,Major Economic Changes in 194836 together withthe report of the Food and Agriculture Organiza-tion on the co-ordination of measures to bringabout an increase in the production of food (E/-1084),37 the report by the Secretary-General onNational and International Action to Achieve orMaintain Full Employment and Economic Stability(E1111 and Add. 1 to 8),38 and the Review ofInternational Commodity Problems, 1948.39

The report of the Secretariat, Major EconomicChanges in 1948, was an interim report on theworld economic situation in 1948 providing afactual background for the Council's discussion ofthis agenda item. This interim report was a pre-liminary survey of the world economic situationin advance of the comprehensive report, which waspublished in June 1949 under the title WorldEconomic Report 1948 (see below). It containeddetailed data on trends in industrial production andemployment, trade and finance, and on inflation-ary and deflationary developments. It directed at-tention to the very substantial improvement in the

world economic situation over the past year. Itpointed out that the supply of foodstuffs during1949 would be increased considerably as a resultof substantially larger harvests in the summer of1948; this represented added means for reducinginflationary pressure, for expanding productiongenerally, and for increasing the volume of inter-national trade. Shortages of certain key commodi-ties were considerably mitigated during 1948, andby the autumn of that year industrial output inmost war-devastated countries was approaching, orhad already exceeded, pre-war levels. The interimreport recorded that the over-all inflationary pres-sure had not weakened substantially, but that de-flationary symptoms were beginning to be ob-servable in some countries during the last quarterof 1948, for the first time since the end of thewar.

The Council considered the world economic sit-uation at its 245th to 251st meetings, from 21 to25 February 1949. The debate consisted in largepart of an exposition by representatives of the sit-uation in their countries and of their views on theexisting world situation and on actions that havebeen or might be taken to meet existing difficul-ties. The full text of the Council's debate has beenpublished as the Supplement to Major EconomicChanges in 1948.40

In concluding its debate, the Council, at its 251stplenary meeting on 25 February, in resolution178(VIII), adopted by 15 votes, with 3 absten-tions, drew the attention of Member States, theEconomic and Employment Commission, the re-gional economic commissions and the specializedagencies to the views expressed by Council mem-bers on the world economic situation. The Coun-

35 United Nations Publications, Sales No.: 1948.II.C.1.36 United Nations Publications, Sales No.: 1949. II.C1.37 See pp. 473-74.38 An analysis of the replies of Governments to the

Secretary-General's questionnaire is contained in Main-tenance of Full Employment. (United Nations Publica-tions, Sales No.: 1949.II.A.2.)

39 United Nations Publications, Sales No.: 1948.II.D.6.40 United Nations Publications, Sales No.: 1949.II.C.2.


cil also urged Member Governments to co-operatefully with the Secretary-General in making avail-able to him "data required for the regular monthlyand annual publications of economic and socialstatistics and for reviews of world economic con-ditions".

2. Discussion by the Economic andEmployment Commission at its

Fourth Session

The Economic and Employment Commission,in accordance with the Economic and Social Coun-cil resolution 178(VIII)A on the world economicsituation, noted, at its fourth session in May 1949,the views of the members of the Council on thissubject.

The Commission also had occasion to give con-sideration to many phases of the current economicsituation in connexion with its discussion of theproblem of economic stability and full employ-ment.41

The Commission gave considerable attention inits discussion to current production and employ-ment levels and trends. It also had an exchangeof views in a closed meeting with members of theSecretariat. Several members of the Commissionpresented statements concerning the economic sit-uation in their respective countries. Some membersfelt that a more adequate treatment of the eco-nomic situation prevailing in Asia, Africa andLatin America was desirable in the Secretariat'sanalysis.

Having noted that the Secretariat, in accordancewith the suggestion of the Commission, had beenpresenting to each session of the Council dataabout current world economic trends, the Com-mission stated the opinion that the prevailingworld economic situation required that the Secre-tary-General continue to survey economic condi-tions throughout the world. It suggested that theEconomic and Social Council request the Secre-tary-General:

( a ) To give particular emphasis to analysesof conditions and trends, in co-operation with thespecialized agencies and experts in the field, and

(b) To keep the members of the Economicand Employment Commission currently informedof the findings and analyses.

It further suggested that the Council considerthe advisability of making arrangements to con-vene special sessions of the Commission, shouldthe world economic situation at any particulartime indicate that special sessions were warranted.

3. Action Taken at the Ninth Sessionof the Economic and Social Council

Although discussion of the world economic sit-uation was not on the agenda of the ninth sessionof the Economic and Social Council, meeting inJuly-August 1949, certain aspects of the currenteconomic situation were considered at length inconnexion with the report of the Economic andEmployment Commission, particularly part VI ofthe report which dealt with economic stabilityand full employment, and in connexion with theitem on the agenda dealing with unemploymentand full employment.

There was available to the Council, at this ses-sion, the full report on the world economic situa-tion prepared annually by the Secretariat entitledWorld Economic Report 1948. 42 This report pro-vided a global analysis of outstanding economicdevelopments in 1948, reviewed these develop-ments in their regional settings, and dealt at somelength with selected world economic problems ofcurrent importance. The report noted that, whileeconomic conditions had improved considerably inmany parts of the world from 1947 to 1948, eco-nomic activity had shown a tendency to level offand, in a few countries, to decline since the middleof 1948 and the early months of 1949; and thatthe far-reaching post-war dislocations of interna-tional trade remained acute. It pointed out that,for the first time since the end of the war, therewas a reversal of the upward trend in prices, acheck to the expansion of production and someincrease in unemployment in a number of coun-tries. Particular attention was drawn to those eco-nomic trends during 1948 and the early monthsof 1949, which appeared to call for national andinternational action.

The report was divided into four parts:(1) A global analysis of outstanding economic

developments in 1948 from the point of view ofproduction, inflation, and international trade andfinance;

(2) A review of these developments in theirspecific regional settings;

(3) Selected world economic problems of cur-rent importance; and

(4) A brief account of the economic activitiesof the United Nations and the specialized agencies.

The report also provided a chronology of the

41 For discussion in the Commission and the Council,see pp. 458-60.

42 United Nations Publications, Sales No.: 1949.II.C3.


more important international economic events ofthe period under review.

At the conclusion of its debate on the report ofthe Economic and Employment Commission andon the item relating to unemployment and fullemployment, the Council requested of the Secre-tary-General further studies of the kind asked forby the Economic and Employment Commission.In resolution 221 (IX) F, adopted at the 336thmeeting on 11 August, by 11 votes to 1, with 6abstentions, it recommended that the General As-sembly include in the agenda of its fourth regularsession the question of promoting full employ-ment,43 and asked the Secretary-General, inter alia,to submit to the fourth session the latest availableinformation on the world economic situation, con-centrating particularly on factors which are criticalfrom the international point of view.

The Council also had available, during the ninthsession, separate economic surveys of Europe, ofLatin America and of the Far East, prepared by

the secretariats of the respective regional economiccommissions.44

4. Action Taken Subsequent to theNinth Session of the Economic

and Social Council

The Secretariat report, World Economic Report1948, was brought up to date in October 1949 byanother entitled Recent Developments in the WorldEconomic Situation,45 which gave a brief reviewof the major economic developments during thefirst half of 1949 and as far as possible during thethird quarter. Appendices to the report containedstatistical data, descriptions of international agree-ments and machinery for the achievement andmaintenance of full employment and economicstability, as well as a statement on an inquiry con-cerning national and international action to main-tain full employment and economic stability.

D. MEASURES TO INCREASE FOOD SUPPLIES

1. Consideration by the GeneralAssembly at its Third Session

The question of "the problem of wasting foodin certain countries", an agenda item proposed byPoland (A/C.2/125 and A/C.2/142), was con-sidered at the third regular session of the GeneralAssembly, at the 79th and 81st to 85th meetings ofthe Second Committee on 17 and 20 to 26 Novem-ber 1948, and at the Assembly's 177th plenarymeeting on 8 December 1948.

In explaining his draft resolution (A/C.2/142),the representative of Poland drew the Committee'sattention to resolutions dealing with food problemsadopted by the General Assembly at its first session(27(I) of 14 February 1946, and 45(1) of 11December 1946), and resolution 103 (VI) adoptedby the Economic and Social Council on 2 March1948.46 His proposal stressed the existence of short-ages of certain foodstuffs and the lack of adequatepurchasing power due to the economic under-development of large areas. In order to assure anadequate nutritional standard for the world's popu-lation, long-term measures to expand productionmust be taken; as to short-term measures, appro-priate steps were necessary to guarantee the mostrational utilization of existing production possibili-ties as well as of the food produced. The draftresolution urged Member countries to avoid foodwastage and increase surpluses available for ex-

port, and called upon the Council (1) to givespecial consideration to the problem of technicaland financial aid for under-developed or war-devastated countries, and (2) to examine otherways and means which might raise the level ofagricultural output and improve marketing anddistribution facilities.

The problem of agricultural production was, therepresentative of Poland felt, part of the largerproblem of economic development. In many coun-tries, feudal and colonial or semi-colonial conditionswere detrimental to agricultural production. In-dustrialization, experience had shown, was accom-panied by an increase in agricultural output. Therewas a need for bold measures of social and indus-

43 See p. 460.44 See under respective commissions.45 United Nations Publications, Sales No.: 1949.II.C.4.46 The General Assembly resolutions cited above out-

lined measures to United Nations Members for alleviat-ing the world shortage of cereals and other foodstuffs.The Council's resolution 103 (VI) asked FAO to reporton measures which were taken in this connexion; and tostudy, in collaboration with the specialized agencies con-cerned and the regional economic commissions, suitablemeasures to bring about an increase in food production.Resolution 140 (VII) of the Council noted the report ofFAO on progress in the co-ordination of the work of thespecialized agencies and regional economic commissionsto bring about an increase of food production, and re-quested those organs to continue their efforts. (Forfurther details, see Yearbook of the United Nations,1947-48, pp. 552-54.)


trial reform combined with plans for capital invest-ment and for economic development in general.

The representative of Cuba presented a draftresolution (A/C.2/139), emphasizing the fact thatlarge population groups were suffering from mal-nutrition, since essential foodstuffs were too expen-sive in proportion to their purchasing power. Inmany instances, food wastage would be avoided ifconsumption were organized to bring these com-modities within the reach of low income groups.Co-ordinated efforts of both consumer and pro-ducer countries were necessary to a satisfactorysupply of foodstuffs, in order that essential needsof consumers might be satisfied in circumstancesequally advantageous to themselves and to pro-ducers. The Cuban draft resolution thereforerecommended United Nations Members to takesuitable action with a view to the abolition, or atleast a substantial reduction, of taxes or other dueson the sale or consumption of essential food prod-ucts. It requested the Council, with the advice ofthe specialized agencies concerned, to carry outthe necessary studies on measures to be taken byMembers, and to submit a report to the next ses-sion of the General Assembly on any othermeasures which might be adopted in this con-nexion.

In support of his resolution, the representative ofCuba quoted resolutions adopted at meetings ofthe Preparatory Commission on World Food Pro-posals of the Food and Agriculture Organization,held from October 1946 to January 1947, whichsupported the view that there was urgent need toraise the levels of nutrition of the peoples of theworld to the standards required for health, and tothis end to develop production to the maximumextent possible. In order to avoid a major slumpin primary production, the Preparatory Commis-sion had stated, it was necessary to increase con-sumption and purchasing power to an extent whichwould keep the world's production capacity fullyutilized and steadily expanding. Implementationof the resolution, the representative of Cubadeclared, would entail a certain loss of internalrevenue on the part of those States which derivedan important income from various kinds of taxa-tion on basic foodstuffs. This loss, however, couldsurely be offset by imposing taxes on non-essentialcommodities.

There was general agreement in the Second Com-mittee that the representatives of Poland and Cubahad performed an important service to the Gen-eral Assembly in raising the question of food pro-duction. Some representatives felt that manycountries were in a privileged position as far asfood supplies were concerned, since their produc-

tion had been little affected by the war, whereasother countries were experiencing starvation con-ditions. Maldistribution was cited as an importantsource of food wastage.

Two points of view became apparent in thediscussion; some representatives held that the worldwas facing a growing food crisis owing to its ever-increasing population, while others expressed a fearof over-supply.

Another aspect of the problem, as the repre-sentative of Egypt pointed out, was the need to re-organize the food trade. Hard currency countries,he thought, should encourage food imports just asmuch as food exports to enable their customers tobalance their trade payments. In buying machineryor fertilizers from soft currency countries, food-producing countries encountered obstacles such asdelays in delivery and high prices. Moreover, soft-currency countries tried to sell their industrialgoods at inflated prices and to purchase foodstuffsat low prices payable over long periods. The food-producing countries selling at low prices were thuscompelled to pay their farmers the difference be-tween that price and the cost price. This practiceled to an ever-increasing fiduciary circulation andresulted in inflation. To combat this, the food-producing countries had recently adopted the pol-icy of impeding the export of their food surpluses.Such countries should be able either to sell theirproduce against payment in hard currencies orbarter their produce for essential products.

Stress was also laid upon the point made by therepresentative of Poland in drawing attention tofeudal and colonial or semi-colonial conditions asan important reason for scarcity of food. However,the representative of the Netherlands stated thatcolonial systems had by no means always pre-vented increases in food production; on the con-trary, in many cases, food production in colonialterritories had increased both absolutely and rela-tively to increases of population.

Several representatives felt that Poland and Cubahad omitted various aspects of the food problem.For instance, no mention had been made of theimportance of price stability as a means of encour-aging agricultural producers to increase their out-put without fear of causing an agricultural slump.The problem of food production was a many-sidedproblem; the representatives of Poland and Cubahad concentrated on rather limited aspects of theproblem which required a more general approach.The representatives of Australia, Canada, the Neth-erlands and the United States considered that thewhole question was receiving adequate treatmentby the Economic and Social Council and the Foodand Agriculture Organization, in accordance with


the terms of the resolutions adopted by thosebodies. They were disposed to give the Counciland FAO an opportunity to develop their existingprogrammes and bring them to a successful con-clusion. In this connexion, the Committee hearda statement from the representative of FAO con-cerning the steps being taken by that organizationwith respect to the matters under discussion.

It was generally felt, however, that action wasrequired by the General Assembly in this field.

A series of amendments to the Cuban and Polishdraft resolutions were proposed by the representa-tives of Egypt (A/C.2/158), the Ukrainian SSR(A/C.2/159), Czechoslovakia (A/C.2/160), theUnited Kingdom (A/C.2/161) and New Zealand(A/C.2/162). The sponsors of draft resolutionsand draft amendments met as an informal groupand prepared one consolidated draft resolution forconsideration by the Committee. The text (A/-C.2/W.12) read as follows:

"The General Assembly,"1. Bearing in mind the resolutions of the General

Assembly and of the Economic and Social Council and ofthe reports of the specialized agencies, particularly of theFood and Agriculture Organization,47 on the question ofshortages of foodstuffs,

"2. Considering thatAlternative A

"(a) The present under-nourishment of large popula-tion groups throughout the world results from a lack ofadequate purchasing power due particularly to economicunder-development of large areas and also from wastageof food products as well as from the existence, in somecountries, of a shortage of certain foodstuffs and, in othercountries, from burdensome taxes imposed on certainfoodstuffs essential to the human diet,"

Alternative B (proposed jointly by the representa-tives of the United Kingdom and New Zealand).

"(a) The present under-nourishment of large num-bers of people throughout the world is caused by insuf-ficient production of food, by loss of foodstuffs by wast-age, by the results of war devastation, by the under-developed character of large areas of the world, and bylack of purchasing power;

"(b) In connexion with this, measures should betaken in the first place, and especially in under-developedcountries and in countries devastated by war, in order toraise the productivity of farms, to avoid losses arisingfrom wastage, and to improve the production, marketingand distribution facilities;

"(c) The equitable distribution of essential foodstuffsrequires that such burdensome fiscal charges whichhamper the sale and consumption of such foodstuffs beappreciably reduced;48

" ( d ) In many countries the high profits made bymiddlemen and speculators in the marketing of food-stuffs constitute an obstacle to a rise in the rate of con-sumption of the population;49

"3. Invites Member States to accord high priority tomeasures designed to avoid food losses arising fromwastage and to increase food production and improvemarketing and distribution facilities so as to raise to amaximum the effective quantity of food available for

consumption and export, and in connexion with theraising of consumption levels, to consider the extent towhich existing taxes and other dues on the consumptionof essential foodstuffs serve to keep down the food con-sumption, and to take suitable action with a view to thereduction of unreasonable profits of middlemen andspeculators in the marketing of foodstuffs;50

"4. Calls upon the Economic and Social Council, inconsultation with the Food and Agriculture Organizationand the specialized agencies concerned, to continue togive consideration to the problems of increasing theworld's supply of food and the international trade infood products, and

Alternative A"(a) To give special consideration to the problems of

technical and financial assistance and of the supply at lowcosts of the production facilities which may be necessaryto enable under-developed and war-devastated countriesto contribute effectively to the required increase in theworld's supply of food; and

"(b) To examine any other measures designed toimprove storage, marketing and distribution facilities forbasic foodstuffs, including measures in regard to thepossibility of reducing burdensome taxes, with a view toraising the levels of nutrition of under-nourished popula-tion groups to health standards and to mitigate the effectsof the world food crisis."

Alternative B (proposed jointly by the representa-tives of the United Kingdom and of New Zea-land).

"(a) To continue to give consideration to the tech-nical and financial problems which may arise especiallyin under-developed and war-devastated countries endeav-ouring to contribute effectively to the required increasein the world's supply of food; and

"(b) To examine any other appropriate measures de-signed to improve storage, marketing and distributionfacilities for basic foodstuffs."

During the debate on the consolidated draftresolution, the representative of the USSR sub-mitted certain amendments (A/C.2/W.15) whichdeleted references to the reports of the specializedagencies. In his opinion, the methods of co-ordi-nating the activities of FAO with the activities ofthe organs of the United Nations, as described inthe report of FAO to the Council's seventh session,were in contradiction to the organizational prin-ciples of the United Nations and the specializedagencies. He further suggested that rather thanthe phrase "reducing unreasonable profits", thephrase "elimination of unreasonable profits" besubstituted in paragraph 3, and added a proposalrequesting the Council to examine measures which

47 The representative of the Ukrainian SSR could notagree with the inclusion of the words "particularly ofthe Food and Agriculture Organization."

48 The representative of the United Kingdom reservedhis position with respect to this paragraph.

49 The representatives of New Zealand and of theUnited Kingdom reserved their position with respect tothis paragraph.

50The representatives of New Zealand and of theUnited Kingdom reserved their position with respect tothe part of the paragraph beginning with the words "totake suitable...".


would effect the maximum reduction of the profitsof middlemen and speculators in the marketingof foodstuffs (paragraph 4(b)).

In the representative of Argentina's opinion, thedraft resolution was incomplete as it did not coverthe position of countries which were principallyproducers of foodstuffs. Argentina would notenter into any commitments limiting the pricesof agricultural products so long as industrializedcountries remained free to fix the prices of theirmanufactured goods. On the other hand, it waspossible to lower the level of prices by interna-tional action in such a way as to establish rationalco-ordination between the prices of raw materialsand of manufactured goods.

The French representative, however, stressed theimpossibility of elaborating a resolution of an ex-haustive nature on so complex a subject, andpointed out the danger of a text concerned withonly certain aspects of the problem. It appearedproper to combine future action in this field withaction already undertaken by the Economic andSocial Council and by FAO. Accordingly, therepresentatives of France and the Netherlands pre-sented a joint draft resolution (A/C.2/163), bywhich the General Assembly considered that avariety of factors in the fields of production, dis-tribution and consumption were obstructing effortsto remedy the world food situation. It furtherapproved the action already taken by the Councilin this connexion, urged it to continue its work,and to this end transmitted to it the text of thePolish and Cuban draft resolutions and the recordof the General Assembly debates.

Amendments to the joint draft resolution weresubmitted by the representatives of India (A/C.2/-164) and Denmark (A/C.2/165), which outlinedminor drafting changes.

The Committee next debated the question ofvoting on the adoption of the two draft resolutions;that of the Netherlands (A/C.2/163), and theconsolidated draft resolution of the informal group(A/C.2/W.12). The Chairman ruled that theadoption of one of the two draft resolutions wouldeliminate any possibility of voting on the other. Inaddition, alternative A of draft resolution A/C.2/-W.12 would be considered as the basic text, al-ternative B as an amendment. A motion by therepresentatives of India and the United States tovote first upon the joint draft resolution of theNetherlands and France was defeated by 16 votesto 16, with 8 absentions.51 Accordingly, the repre-sentative of France presented amendments (A/-C.2/W.17) to the consolidated draft resolution,which would: (1) approve the action taken bythe Economic and Social Council at its sixth and

seventh sessions; (2) add references to the questionof unstable prices, and in paragraph 2 (a) of bothalternatives A and B, insert the words "inter alia"to take into consideration the various other factorscausing the present state of under-nourishment ofthe peoples of the world; (3) make certain minordrafting changes in paragraph 2 (d) concerningmiddlemen profits; and (4) request the Councilto give consideration to measures ensuring stabil-ity of prices.

The Second Committee decided as follows:1. To reject USSR amendments with respect to

deleting references to the reports of FAO andspecialized agencies (by 7 votes in favour to 18against, with 14 abstentions), and with regard torequesting the Council to examine measures whichwould reduce middlemen profits (by roll-call of 13votes in favour to 20 against, with 9 abstentions).

2. To accept, without opposition, the USSRamendment to substitute the phrase "eliminationof unreasonable profits" in paragraph 3.

3. To reject a United Kingdom proposal (con-tained in A/C.2/W.12) to delete sub-paragraph 2(c) (by roll-call of 13 votes in favour to 23against, with 6 abstentions).

4. To reject a United Kingdom and New Zea-land proposal (contained in A/C.2/W.12) todelete sub-paragraph 2 (d) (by 15 votes in favourto 25 against, with 2 abstentions), and the wordsin paragraph 3 "to take suitable action with a viewto the reduction of unreasonable profits of middle-men and speculators in the marketing of food-stuffs" (by 17 votes in favour to 20 against, with 5abstentions).

5. To adopt alternative B of sub-paragraph 2(a) (by 20 votes to 16, with 3 abstentions), andsub-paragraph 2 (b) (by roll-call unanimously).

6. To adopt the French amendment to insert anew paragraph after paragraph 1 concerning theGeneral Assembly's approval of the Council's ac-tion in the matter (by 23 votes to 6, with 11 ab-stentions).

7. To adopt the French proposal to reword sub-paragraph 2 (d) (by 13 votes to 9, with 20 ab-stentions), and its request to the Council to giveconsideration to measures ensuring stability ofprices (by 33 votes to none, with 9 abstentions).The Committee agreed subsequently to incorporatethe latter amendment in the body of sub-paragraph4 (b) after the words "burdensome taxes".

8. To reject alternative B of sub-paragraph 4(a) (by 16 votes in favour to 24 against, with 1abstention) and sub-paragraph 4 (b) (by roll-call

51 If a vote is equally divided, the proposal is regardedas rejected.


of 16 votes in favour to 23 against, with 3 absten-tions).

9. To adopt the draft resolution as a whole, asamended (A/C2/W.19) (by 22 votes to 7, with11 abstentions).

The draft resolution proposed by the SecondCommittee (A/756) was discussed at the 177thplenary meeting of the General Assembly on 8 De-cember 1948. Amendments were jointly proposedby Canada, New Zealand, the United Kingdom andthe United States (A/762/Rev.l), as follows:

(1) To insert the words "inter-alia" in para-graph 3 (c) referring to the reduction of fiscalcharges. As explained in the debate which fol-lowed, these delegations felt that other factors be-sides burdensome fiscal charges were obstacles tothe equitable distribution of foodstuffs, e.g., theUnited Kingdom representative stressed the needfor countries to ration where there were shortages,and to raise the purchasing power of lower incomegroups.

(2) As amended by the French delegation, para-graph 3, sub-paragraph (d) read:

"Wherever high profits are made by middlemen andspeculators in the marketing of foodstuffs, those profitsconstitute an obstacle to the equitable distribution ofsuch foodstuffs;"

It was proposed to change the sub-paragraph toread:

"Wherever profiteering by distributors or speculatorsis involved in the marketing of essential foodstuffs, suchprofiteering constitutes an obstacle to the equitable dis-tribution of such foodstuffs."

The purpose of this amendment was to substi-tute words which more sharply defined the intentof the Committee in its use of the phrases "highprofits", "middlemen" and "foodstuffs".

(3) In paragraph 4 of the proposed draft reso-lution, Members were invited, among other things,"to take suitable action with a view to the elimina-tion of unreasonable profits of middlemen andspeculators in the marketing of foodstuffs." Itwas proposed to change the end of the paragraphafter the words "elimination of" to read "profiteer-ing in respect of such foodstuffs".

(4) The fourth amendment concerned the oper-ative part of the resolution, calling upon the Coun-cil, in consultation with FAO and the other special-ized agencies concerned"(a) to give special consideration to the problems oftechnical and financial assistance and of the supply atlow costs of the production facilities which may benecessary to enable under-developed and war-devastatedcountries to contribute effectively to the required increasein the world's supply of food."

The amendment would substitute for the words"problems of technical and financial assistance and

of the supply at low costs of" the following: "tech-nical, financial, supply and other problems involvedin providing."

The first three amendments were generally ac-cepted; however, there was a difference of opinionon the fourth amendment. By omitting the pointthat special consideration should be given to thesupply of production facilities to agricultural pro-ducers in under-developed and war-devastatedcountries at low costs, the representatives of Chile,Cuba, Poland and the USSR considered that theresolution would be weakened substantially. It wasthe opinion of the sponsors of the joint amend-ments, nevertheless, that the amendment enlargedthe scope of the resolution. It would then includethe whole range of supply problems rather thanone aspect, namely, the cost of facilities of produc-tion. The representative of France agreed withthis view.

Several representatives, including those of Franceand the United Kingdom, objected to the methodfollowed in the Second Committee, a methodwhich, they felt, attempted to formulate a hastilydrafted proposal in order to reach a solution to avast and complex problem. The elaboration ofsuch a draft resolution should be left to the compe-tent organs; i.e., the Council, the specializedagencies and the regional commissions. The rep-resentative of the USSR, in noting the fact that themeasures proposed by the Second Committee toeliminate the wastage of food were insufficient, feltthat the Committee had considered the questionthoroughly and without haste. He reiterated hisobjection to the approval of the measures with re-gard to food problems adopted by the Council inthe course of its sixth and seventh sessions. Hisremarks were included, as requested, in the ver-batim records of the General Assembly.

The Assembly adopted the first amendment by32 votes to none, with 5 abstentions; the secondamendment, by 29 votes to none, with 8 absten-tions; the third, by 32 votes to none, with 9 ab-stentions; and the fourth, by 22 votes to 16, with2 abstentions.

The General Assembly then adopted at its 177thplenary meeting on 8 December 1948, resolution202(III) , by 35 votes to 1, with 2 abstentions, asfollows:

"The General Assembly"1. Bearing in mind the resolutions of the General

Assembly and of the Economic and Social Council andthe reports of the specialized agencies, particularly of theFood and Agriculture Organization, on the question ofshortages of foodstuffs,

"2. Approves the action taken by the Economic andSocial Council at its sixth and seventh sessions, on theinitiative of the Food and Agricultural Organization,


regarding co-ordinated action to meet the continuingworld food crisis; and

"3. Considering that"(a) The present under-nourishment of large num-

bers of people throughout the world is caused, inter alia,by insufficient production of food, by loss of foodstuffsthrough wastage, by the results of war devastation, bythe under-developed character of large areas of the worldand by lack of purchasing power, while fear of unstableprices remains an obstacle to the necessary increase ofproduction;

"(b) In connexion with this, measures should betaken in the first place, and especially in under-developedcountries and in countries devastated by war, to raise theproductivity of farms, to avoid losses arising from wast-age and to improve the production, marketing and dis-tribution facilities;

"(c) The equitable distribution of essential foodstuffsrequires, inter alia, that such burdensome fiscal chargesas hamper the sale and consumption of such foodstuffsbe appreciably reduced;

" ( d ) Wherever profiteering by distributors or specu-lators is involved in the marketing of essential foodstuffs,such profiteering constitutes an obstacle to the equitabledistribution of such foodstuffs;

"4. Invites Member States to accord high priority tomeasures designed to avoid food losses arising from wast-age, and to increase food production and improvemarketing and distribution facilities so as to raise to amaximum the effective quantity of food available forconsumption and export; and, in connexion with theraising of consumption levels, to consider the extent towhich existing taxes and other charges on the consump-tion of essential foodstuffs serve to keep down food con-sumption; and to take suitable action with a view to theelimination of profiteering in respect of such foodstuffs;

"5. Calls upon the Economic and Social Council, inconsultation with the Food and Agriculture Organizationand the other specialized agencies concerned, to continueto give consideration to the problems of increasing theworld's supply of food and of the international trade infood products; and

"(a) To give special consideration to technical,financial, supply and other problems involved in provid-ing the production facilities which may be necessary toenable under-developed and war-devastated countries tocontribute effectively to the required increase in theworld's supply of food; and

"(b) To examine any other measures, including meas-ures designed to improve storage, marketing and distribu-tion facilities for basic foodstuffs and measures in regardto the possibility of reducing burdensome taxes, and togive consideration to measures ensuring stability of prices,with a view to raising the levels of nutrition of under-nourished population groups to health standards and tomitigate the effects of the world food crisis."

2. Consideration by the Economicand Social Council at its Eighth

and Ninth Sessions

At its eighth and ninth sessions, the Councilconsidered various aspects of the question of theavailability of food.

At its eighth session, the Council considered

General Assembly resolution 202(III) in the lightof the Assembly's request to continue, in consulta-tion with the specialized agencies, to give consid-eration to the problems of increasing the world'ssupply of food and of international trade in foodproducts.

The matter was discussed at the 43rd and 44thmeetings of the Council's Economic Committee onthe basis of a Danish draft resolution (E/AC.6/-W.33/Rev.l). The majority of the membersagreed that those problems referred to in resolu-tion 202(III), which came within the generalterms of reference of FAO, should be referred tothat organization. The representative of FAO feltthat as far as the technical aspects of food wastagewere concerned, the problem came within the gen-eral terms of reference of FAO; however, other as-pects of the problem such as those connected withstorage, marketing and distribution of certainbasic foodstuffs might be considered outside thepurview of the organization. The representativeof the USSR, however, did not believe that theCouncil should refer the question as a whole toFAO, as resolution 202 (III) called upon the Coun-cil to take comprehensive measures on the subject.

In its resolution 183 (VIII), adopted at the269th plenary meeting on 10 March 1949, by 14votes, with 3 abstentions, the Council recommendedthat measures to increase food production and todecrease food wastage should continue to receiveurgent attention in all countries, especially in thosecountries, the economic development of whichwould otherwise suffer because of shortages of foodand of means of payment necessary for food im-ports. It recognized the problems arising from thefact that surpluses in certain countries might re-main unexportable because of the lack of means ofpayments on the part of countries having cor-responding shortages. The resolution further re-quested the executive heads of FAO and otherspecialized agencies, in co-operation with the Sec-retary-General, to undertake studies which theCouncil would need in considering recommenda-tions for action concerning the matters referred toin General Assembly resolution 202(III).

The Council also discussed a report submittedby FAO (E/1084), prepared in response to Coun-cil resolutions 103(VI) and 140 (VII), concerningthe measures taken to further co-operation betweenvarious international agencies and organizations inrelation to food.

The report indicated certain studies which mightbe made by FAO in collaboration with other inter-national agencies. For those studies on productionrequisites which were being completed by FAO, itconcluded, recommendations for action on the part


of Governments and appropriate international or-ganizations might be formulated by the regionaleconomic commissions and FAO. A report on in-ternational financing of development and ananalysis of trends in the pattern of world trademight be undertaken, while arrangements mightbe made to study those aspects of marketing anddistribution outside the scope of FAO's work.

Some fear was expressed that FAO might run therisk of dissipating its attention on social and eco-nomic problems which were not in its field. Sinceagricultural development, members agreed, was apart of the question of economic devolpment, FAOwould of necessity play an important role; divisionof labour in that connexion, however, remained anessential principle. The representative of theUSSR was concerned lest regional commissions be-come organizations subordinated to the specializedagencies. He maintained that the joint workingparties of FAO and the regional economic com-missions had violated the agreement between FAOand the United Nations. In addition, FAO had notencouraged the development of small and medium-sized agricultural centres and farms, and had notarranged for adequate credit facilities for fer-tilizers, seed and other equipment which they re-quired. The majority of the members agreed thatthe world food situation was no longer in a stateof crisis, although the situation remained precari-ous. The Council, in resolution 182(VIII),adopted by 13 votes, with 3 abstentions, took noteof the report and requested the Secretary-General totransmit the records of the discussion to FAO.

In accordance with resolution 183(III), FAOsubmitted to the Council, at its ninth session, infor-mation concerning (a) measures taken by FAOand other specialized agencies and the United Na-tions relative to the problem of food wastage, and(b) a report on measures taken and planned byFAO to deal with the technical aspects of foodwastage (E/1339). In the first part of the report,the Council's attention was drawn to three studiesto be undertaken by FAO: the first, a review ofcommodities as affected by agreements, interna-tional trade and distribution, and also a review ofinter-governmental discussions or arrangementsthen proceeding or in existence; the second, astudy of trends which had emerged as regards in-ternational trade in food and agricultural products;and the third, a study of existing facilities in thefield of international investment. With regard tothe latter part of the report, FAO proposed con-vening further regional meetings, similar to thosealready held, to deal with the problems of infesta-tion control; in addition, a project was planned un-der which a country-wide demonstration of control

methods was to be carried out within one country.In this connexion, FAO submitted a report con-cerning technical assistance dealing particularlywith those sections of the FAO programme de-signed to improve storage, marketing and distribu-tion facilities for basic foodstuffs (E/1321).

FAO also submitted to the Council a draft state-ment on the world food situation, as prepared bythe Council of FAO in June 1949 (E/AC.6/34),and a statement by the representative of FAO(E/AC6/35).

The question on measures to increase the avail-ability of food was considered by the Council atthe 49th, 50th and 52nd to 54th meetings of theEconomic Committee on 6, 7, 12, 13 and 19 July,respectively, and the 304th plenary meeting on 21July 1949.

The discussion centred largely on a proposal(E/AC.6/38) formulated by a drafting committeeon the basis of proposals submitted by the UnitedStates (E/AC.6/W.40) and by India (E/AC.6/-W.43). The proposal recommended by the UnitedStates, inter alia, welcomed the arrangements madeby FAO for a detailed study of, and recommenda-tions on, the removal, or at least the mitigation, ofuncertainties affecting the availability of food, andinvited the specialized agencies to co-ordinate theiractivities in regard to the problem. The other,submitted by India, recommended that the Foodand Agriculture Organization and other specializedagencies, in collaboration with the regional com-missions, take prompt and comprehensive measuresto secure an increase in the production of food inthe thickly populated and under-developed areasof the world; and called upon the principal food-producing countries to enter into bilateral or multi-lateral arrangements, so as to facilitate the eco-nomical disposal of surpluses, and to avoid restric-tionism in their future production of food, at leastuntil such time as the world's population is ade-quately and properly nourished.

It was debated whether the problem of possiblesurpluses and their disposal should be stressed,rather than that of increasing food production,especially by assistance to small and medium-sizedfarms. The advisability of making any recom-mendations at this time was also questioned, inview of the fact that the Council of FAO had re-quested from its secretariat for the FAO Confer-ence in November 1949 a report on this matterand on the position of farmers in food-exportingcountries.

After rejecting USSR amendments (E/AC.6/-W.48) which would, inter alia, have stressed theimportance of raising the productivity of small


and medium farms and have called on Members toensure such farms cheap credits and supplies offarm equipment, seeds and fertilizers on accessibleterms, the Council adopted two resolutions. Inresolution 223 (IX) A, unanimously adopted at its364th meeting on 22 July 1949, the Council tooknote of the report submitted by FAO. In resolu-tion 223 (IX) B, adopted at the same meeting by14 votes to none, with 4 abstentions, the Councilaffirmed the importance and urgency of interna-tional and national action designed to increase theavailability of food throughout the world, and toassist in the disposal of any local food surpluses onterms acceptable to exporting and importing coun-

tries. It also welcomed the studies being under-taken by FAO on the underlying circumstanceswhich may lead to local surpluses, especially offoodstuffs, and the decision of the FAO Councilto arrange for a report for the 1949 conference ofthe organization, to contain recommendations onthe removal or the mitigation of the uncertaintiesaffecting the production of, trade in, and con-sumption of, basic agricultural commodities. TheCouncil also requested the Secretary-General totransmit to FAO and to the Interim Co-ordinatingCommittee for International Commodity Arrange-ments the records of the Council's discussions onthis subject.

E. AVAILABILITY OF DDT INSECTICIDES FOR COMBATTINGMALARIA IN AGRICULTURAL AREAS

Consideration was given to this question by theCouncil at its eighth session, at the 44th meetingof the Economic Committee on 7 March, and atthe 269th plenary meeting on 10 March 1949. Astatement submitted by the World Health Organ-ization (E/1089) on the effective use of DDTinsecticides pointed out that appropriate measuresshould be taken to ensure that adequate suppliesof DDT insecticides were available in countriesrequiring them and to facilitate the free flow ofDDT insecticides or their ingredients in interna-tional commerce. The statement concluded thatthe success of efforts to exterminate malaria-carry-ing mosquitoes depended on the availability ofDDT insecticides at moderate costs, and on pro-duction facilities in the immediate vicinity of thearea concerned.

There was some divergency of opinion as to theappropriate time to make recommendations on thesubject. A Chinese draft resolution (E/AC.6/-W.34) would have issued certain recommendationsfor immediate action at the current session, whilea United Kingdom amendment (E/AC.6/W.37)proposed a study to be undertaken, in order thatfull knowledge would be available before decisionswere taken. It was, however, agreed in principlethat a study should first be made of the question ofthe availability of DDT insecticides for combatingmalaria in agricultural areas.

Resolution 184(VIII), unanimously adopted atthe Council's 269th plenary meeting, requested theSecretary-General to prepare for consideration atthe ninth session of the Council a report on theproduction, distribution and availability of thoseinsecticides (e.g., DDT, BHC etc.) valuable inthe control of malaria.

This report of the Secretary-General (E/1353)was reviewed at the 51st and 52nd meetings ofthe Economic Committee on 7 and 12 July, andat the 295th plenary meeting on 14 July 1949,together with a communication from the Director-General of WHO .(E/AC.6/36), drawing theCouncil's attention to resolutions adopted by theSecond World Health Assembly in this field.Among other things, the World Health Assemblyhad requested that serious consideration be givento the proposal that countries waive customs dutieson material for insect control, in view of the veryimportant sanitary and economic benefits to beexpected from their use on a large scale. It alsorecommended that Governments require from man-ufacturers of insecticidal products the correct label-ling of such products; this requirement would notbe necessary, however, in countries where suchproducts were officially tested for efficacy for spe-cific purposes and were "approved."

The discussion centred on a joint draft resolu-tion presented by Brazil, China and the UnitedStates (E/AC.6/37), to which amendments weresubmitted by the USSR (E/AC.6/W.44), theUnited Kingdom (E/AC.6/W.45) and India(E/AC.6/W.46). Both the United Kingdom andthe USSR objected to the recommendation, in thejoint draft resolution, to Governments to facilitatethe freer flow of insecticides, raw materials andequipment for their production by appropriatemeasures with regard to tariffs, import and exportrestrictions. The representative of the UnitedKingdom did not consider that the evidence at theCouncil's disposal was sufficient to justify a recom-mendation to Members to lower their tariffs, andhe proposed the deletion of any references to appro-


priate measures. The representative of the USSRfelt that such matters should be regarded as fallingsolely within the jurisdiction of Member States, andhe placed on record a reservation on that part of thedraft resolution relating to tariffs and import re-strictions. His amendment included a recom-mendation to promote the production of DDTin countries where it was not at present being pro-duced; he considered this to be the most importantof the aspects of the problem of increasing theavailability of DDT.

The amendments of the United Kingdom andUSSR were subsequently rejected by the EconomicCommittee. An amendment submitted by India,calling attention to the recommendations of WHOon the correct labelling of insecticides, wasadopted.

It was also pointed out that DDT might oftennot be the most effective and economical insecticideto use, and that in any case it was likely to be outof date soon; other insecticides should be consid-ered, such as BHC, which had been used experi-mentally in Uganda and the Belgian Congo to killcertain common species of malaria-carrying mos-quitoes. A majority of representatives felt, how-

ever, that the crux of the problem was the produc-tion of more insecticides to combat malaria, with-out awaiting the results of research on new for-mulas which might take a long time.

The draft resolution of the Economic Committee(E/1399), based on the joint resolution of Brazil,China and the United States, as amended by India,and incorporating certain drafting changes, wasdiscussed at the Council's 295th plenary session.By a unanimous vote, the Council approved resolu-tion 225 (IX), which drew the attention of Mem-ber Governments to the Secretary-General's re-port and recommended that they facilitate, as muchas possible, the freer flow of insecticides, raw mate-rials and equipment for their production, and thattechnical assistance in producing, formulating andapplying insecticides be extended by the UnitedNations, the specialized agencies and Member Gov-ernments to under-developed countries. The Coun-cil, in the same resolution, drew attention to therecommendations of WHO regarding the correctlabelling of insecticides. Finally, the Councilrequested the Secretary-General to continue hisstudy of the subject and to present a further reportto a future session of the Council.

F. TRAINING IN PUBLIC ADMINISTRATION

At its sixth session, the Economic and SocialCouncil considered a Brazilian draft resolution(E/610 and Rev. 1) concerning an internationalcentre for the promotion of training in public ad-ministration. The Brazilian delegation linked itsproposal directly with the programme of technicalassistance of the United Nations, for the formula-tion of which ideas and materials were then beingreviewed. In a supplementary note (E/610/-Add. 1), it emphasized the need for the improve-ment of the productivity or efficiency of govern-ment through the training of administrators andthe diffusion of knowledge of the science of ad-ministration in any co-operative international effortfor development or reconstruction.52

After discussion of the Brazilian proposal, theEconomic and Social Council, on 24 February1948, recommended (132 (VI)) that the Secretary-General, in consultation with the Advisory Com-mittee on Administrative and Budgetary Ques-tions, the International Civil Service AdvisoryBoard, and with appropriate public and private in-ternational organizations, prepare a study on thequestion. This study, the Council decided, was todeal with the development of international facili-ties for the promotion of the science of adminis-

tration, so as to provide adequate training for anincreasing number of candidates of proved ability,recruited on the widest geographical basis, butmainly from the countries in greatest need of ac-cess to the principles, procedures and methods ofmodern administration. This resolution also rec-ommended that the Secretary-General submit asearly as possible a report to the Economic and So-cial Council or to the General Assembly as mightbe appropriate.

1. Preparation of a Plan for anInternational Centre

Accordingly, the Secretary-General took steps togather the requisite material for this study andadvised the Council, at its seventh session(E/849), of the intial steps he had taken. Hestated further that the question would be discussedby the Advisory Committee on Administrative andBudgetary Questions at its meeting in the autumnof 1948, but that the scope of the study and thedesirability of consulting the International Civil

52 See Yearbook of the United Nations, 1947-48, p.652.


Service Advisory Board during its first sessionscheduled for early in 1949, made it probable thata complete report could not be made before theSpring of 1949.

As one of these steps, a special consultant sub-mitted a report on the question (A/C.5/W.89),outlining a programme of action for the establish-ment of an international centre for training inpublic administration along the lines previouslyindicated by the Brazilian delegation.

The Secretary-General subsequently consulted onthe matter with the Advisory Committee on Ad-ministrative and Budgetary Questions, which ap-proved in principle the proposal for the establish-ment of an international centre for training in pub-lic administration and believed that such a centrewould be of value both to national administrationsand to the Organization. The Committee furtherexpressed the opinion that the Secretary-Generalshould present his report for detailed considera-tion by the Economic and Social Council at itseighth session, awaiting the decision of the Councilor other body to which the matter should be re-ferred before examining in detail the budgetaryquestions involved. The Advisory Committee sug-gested that, in any event, only a limited credit bemade available during the year 1949, primarily forthe engagement of a nucleus of staff to undertakethe detailed planning of the project (A/746).

On the basis of these views, the Secretary-Gen-eral submitted a report to the third session of theGeneral Assembly (A/C.5/252), which recom-mended that the programme of the proposed inter-national centre include the following:

(a) An international administrative staff col-lege;

(b) An international school of public adminis-tration;

(c) Assistance to Governments, upon request,in administration training and in the exchange ofofficials;

(d) Co-ordination of the exchange of civilservants and of information on administration tech-niques.

The report further recommended that the Gen-eral Assembly, in approving the principle of sucha programme, decide the following questions:

(1) The extent to which the United Nationsshould bear the costs of subsistence and local travelexpenses of individuals participating in the pro-gramme.

(2) The approximate number of participantsto be admitted in each full year of operation underthe programme.

(3) The extent to which the programme shouldbe operated in the year 1949.

Among the several alternatives presented con-cerning the first question, the Secretary-Generalfavoured the recommendation that, particularlyduring the early years, the United Nations and theGovernments concerned share on an equal basissuch costs.With respect to the second question, the Secre-

tary-General recommended that, in the first fullyear of operation, thirty participants be admittedto the international staff college on the basis ofshared expenses, and that sixty participants be ad-mitted to the school of public administration onthe same basis. Within the limits approved bythe Secretary-General as administratively feasible,Member Governments should also be authorizedto send an additional number of participants, pro-vided that their full cost of subsistence and inci-dental travel expenses be borne by the Govern-ments concerned.

As regards the third question, the Secretary-Gen-eral considered that efforts during 1949 would bemost effective if confined to the selection of thedirecting staff for the centre, and the preparationof detailed plans looking toward the operation ofthe centre in 1950. This action, the report stated,would require an additional expenditure for 1949of approximately $16,700.

2. Consideration by the GeneralAssembly at its Third Session

The General Assembly, on 3 November, referredthe Secretary-General's report to the Fifth Com-mittee which considered it at its 162nd, 164th and165th meetings, held on 17 and 23 November1948, respectively. The item was also consideredby the Assembly at its 170th and 171st plenarymeetings on 4 December 1948.

a. DISCUSSIONS IN THE FIFTH COMMITTEE

The Committee had before it: (1) the study(A/C.5/W.89) prepared by the special consultant(see above), and (2) a note (A/C.5/W.113) bythe Secretariat on the financial implications of thevarious draft resolutions.

During the general debate, a majority of Gov-ernments supported, in principle, the proposal forthe establishment of the international centre. Therepresentatives of Bolivia, Brazil, Chile, India,Pakistan and Uruguay, among others, linked thequestion of training public administrators to thequestion of technical assistance. Particularly inthe under-developed countries, it followed that allsystematic efforts towards economic developmentmust be preceded by an attempt to make the func-


tioning of the governmental machine more effec-tive. The establishment of an international centrewas, therefore, an urgent and vital issue, and wouldbe particularly welcome in those under-developedcountries whose economic development was ham-pered by the lack of qualified administrative per-sonnel. In stressing the importance of this ques-tion, the representative of Brazil noted that boththe Economic Commission for Asia and the FarEast and the Economic Commission for LatinAmerica in their annual reports had drawn atten-tion to the situation.

It was also pointed out that in helping Govern-ments to train administrative personnel, the UnitedNations would derive two advantages: an increasein the supply of trained personnel for internationalorganizations and possibly wider application of theprinciple of geographical distribution within theUnited Nations itself; and the creation of condi-tions for the implementation of United Nationsdecisions in the economic and social fields.

The objections to the proposal mainly concernedits financial implications. A number of countries,among them Australia, Belgium, France, the Neth-erlands, New Zealand, Poland and the UnitedKingdom, felt that the United Nations budget wasalready too large and every effort should be madeto limit any new activity which implied additionalexpenditure. In this case, some felt, a final deci-sion on the matter could be postponed until thenext session of the General Assembly, with pos-sible consideration by the Economic and SocialCouncil in the intervening period.

There was some doubt as to whether such aproject was within the framework of the activitieswhich the United Nations should undertake. Itwas claimed that the proposed centre would consti-tute direct intervention in the national affairs ofStates, on which foreign ideas and institutionswould be imposed. The training of civil servantsshould be the responsibility of the national Gov-ernments themselves. As one alternative, it wassuggested by certain delegations, including thoseof India, the Netherlands, Poland and the UnitedKingdom, that the facilities existing in variouscountries should be utilized, and that the UnitedNations act solely as a co-ordinating agency. Inthis capacity, it could promote the exchange of civilservants among countries and help to place existingfacilities at the disposal of the recipient Govern-ments. Others contended that the facilities of an-other agency, possibly the United Nations Educa-tional, Scientific and Cultural Organization, mightbe utilized as an intermediary for granting fellow-ships to private institutions, as the problem seemedto be primarily one of education.

Supporters of the programme held that the out-lay was modest in relation to the potential and realbenefits which would accrue on both a nationaland international level. In addition, the repre-sentative of Brazil believed, the measure as con-templated was of the type envisaged in the Charterof the United Nations. In particular, he mentionedArticle 55(b), which provided that the UnitedNations endeavour to promote international cul-tural and educational co-operation, and paragraph2 of Article 66 concerning the provision of suchservices by the Economic and Social Council at therequest of Members, when approved by the Gen-eral Assembly.

It was also pointed out that UNESCO had beenconsulted, and had expressed the opinion that theprogramme involved so many different spheres ofinternational public interest as to warrant its estab-lishment under the direct supervision of the UnitedNations.

Draft resolutions on the subject were presentedin the Fifth Committee by the delegations ofBrazil (A/C.5/258), India (A/C.5/266), theUnited States and Venezuela jointly (A/C.5/267),and Belgium (A/C.5/268). A proposed amend-ment to the United States-Venezuelan draft resolu-tion was submitted by the Canadian delegation(A/C.5/269).

The Brazilian draft resolution (A/C.5/258),subsequently withdrawn in favour of the jointUnited States-Venezuelan proposal (A/C.5/267).specified the establishment of an internationalcentre in 1949, with authority to provide for theadvanced training and the exchange of seniorcivil servants, and also to provide intensive train-ing for younger civil servants and potential civilservants either directly or in appropriate nationaland international agencies. A report by the Sec-retary-General on the action taken in pursuance ofthe resolution was to be submitted to the Assem-bly's fourth session, with suggestions for any fur-ther policy or budgetary decisions necessary. Theremainder of the provisions of the Brazilian pro-posal, which were later included, in their entirety,in the Indian draft resolution, concerned expertassistance to requesting Governments, and the pro-motion, in co-operation with the International In-stitute of Administrative Science, of the editingand publication of appropriate literature and in-terchange of information.

However, the Indian draft resolution (A/C.5/-266), inter alia, authorized the Secretary-Generalto initiate preparatory measures for the startingof an international staff college in 1950, and to re-port thereon to the Assembly's fourth session. Thecollege would promote closer understanding be-


tween senior administrators in different regionsand different spheres of activity, and impart up-to-date knowledge in the field. In addition, prepara-tory measures were to be initiated for providingintensive training at regional centres for juniorcivil servants.

The joint draft resolution of the United Statesand Venezuela, which authorized the Secretary-General to include in his budget estimates thesum necessary to initiate in 1949 a programme oftraining, differed from the Brazilian resolutionby (1) establishing a closer link between thequestion of public administration and the work ofthe United Nations, and (2) omitting all specificmention of an international centre, stating merelythe functions to be performed. This, as the repre-sentative of the United States explained, was donein order not to prejudice which form of organiza-tion would prove most effective; his delegationopposed the proposal to establish an internationalstaff college under United Nations auspices.

The Canadian amendment (A/C.5/269) to thejoint draft resolution included a request to theSecretary-General to conduct further studies onthe problem. In this connexion, the Canadianrepresentative accepted an Australian amendment,by which the Secretary-General would present areport to the eighth session of the Council, ratherthan to the fourth session of the General Assembly.

The Belgian draft resolution (A/C.5/268) pro-posed reference of the Secretary-General's reportto the Economic and Social Council for furtherconsideration and study.

At its 165th meeting on 23 November 1948,the Fifth Committee took the following action:(1) rejection of the Belgian draft resolution(A/C.5/268) by a roll-call vote of 10 in favourto 23 against, with 10 abstentions; (2) rejectionof the Canadian amendment (A/C.5/269) by aroll-call vote of 11 in favour to 23 against, with10 abstentions; (3) rejection of the Indian draftresolution (A/C.5/266) by a roll-call vote of6 in favour to 30 against, with 7 abstentions; and(4) rejection of the joint draft resolution (A/-C.5/267) of the United States and Venezuela bya roll-call vote of 19 in favour to 21 against, with4 abstentions.

By a roll-call vote of 26 to 15, with 2 absten-tions, the Fifth Committee decided to turn itsattention to the proposals of the Secretary-General,as contained in his report (A/C.5/252). TheFifth Committee then adopted the draft resolutionset forth therein (see below), by a roll-call voteof 21 to 18, with 5 abstentions, and informed theGeneral Assembly accordingly (A/746). TheCommittee also supported the recommendation of

the Secretary-General with regard to the sharingof equal costs by the United Nations and theGovernments concerned; and approved the ex-penditure of the $16,700 required in 1949 to ini-tiate the necessary arrangements for the operationof the centre in 1950.

b. RESOLUTION ADOPTED BY THE GENERALASSEMBLY

The report of the Fifth Committee (A/746)was discussed at the 170th and 171st plenary meet-ings of the General Assembly on 4 December1948. The representative of Belgium reiteratedthe opinion which he had put forward previouslyin the Fifth Committee, that the matter be referredto the Economic and Social Council for furtherconsideration. The Belgian point of view wasincorporated in an oral amendment submittedby the representative of France. This amendmentwas opposed by the representative of Brazil, onthe grounds that the same question had beenraised in the Fifth Committee and rejected atthat time.

The President proposed that a separate vote betaken on the paragraph concerned (paragraph 1,see below), as the operative part of the Frenchamendment would become effective only if thatparagraph were deleted. Accordingly, a vote onparagraph 1 was taken by roll-call, as follows:In favour: Argentina, Australia, Bolivia, Brazil, Burma,

Canada, Colombia, Costa Rica, Cuba, Domini-can Republic, Ecuador, Egypt, El Salvador, Greece, Gua-temala, Haiti, Honduras, India, Iran, Iraq, Lebanon,Mexico, Nicaragua, Panama, Peru, Philippines, SaudiArabia, United States, Uruguay, Venezuela.Against: Belgium, Byelorussian SSR, Canada, Czecho-

slovakia, Denmark, France, Iceland, Luxem-bourg, Netherlands, New Zealand, Norway, Poland,Sweden, Ukrainian SSR, Union of South Africa, USSR,United Kingdom, Yugoslavia.Abstentions: Afghanistan, China, Syria, Thailand, Tur-

key.As the first paragraph was declared adopted

by 30 votes to 18, with 5 abstentions, the Presi-dent stated that the amendment suggested by therepresentative of France did not therefore arise.

A roll-call vote was also taken on paragraph 2,as follows:In favour: Afghanistan, Argentina, Australia, Bolivia,

Brazil, Burma, Chile, Colombia, Costa Rica,Cuba, Dominican Republic, Ecuador, Egypt, El Salvador,Greece, Guatemala, Haiti, Honduras, Iceland, India, Iran,Iraq, Lebanon, Mexico, Nicaragua, Panama, Paraguay,Peru, Philippines, Turkey, United Kingdom, UnitedStates, Uruguay, Venezuela.Against: Belgium, Byelorussian SSR, Czechoslovakia,

Netherlands, Poland, Ukrainian SSR, USSR,Yugoslavia.Abstentions: Canada, China, Denmark, France, Luxem-

bourg, New Zealand, Norway, SaudiArabia, Sweden, Syria, Thailand, Union of South Africa.


The second paragraph was declared adopted by34 votes to 7, with 12 abstentions; the third para-graph was then adopted by 32 votes to 15, with6 abstentions.

The resolution (246(III)), as a whole, wasadopted at the 171st plenary meeting on 4 Decem-ber 1948, by 34 votes to 17, with 2 abstentions,as follows:

"The General Assembly,"Recognizing the need for international facilities

which will provide adequate administrative training foran increasing number of candidates of proved ability re-cruited on a wide geographical basis, but mainly fromthe countries in greatest need of access to the principles,procedures and methods of modern administration,

"Resolves that"1. An International Centre for Training in Public

Administration shall be established under the directionof the United Nations;

"2. The Secretary-General shall report detailed ar-rangements for such a centre to the Economic and SocialCouncil for consideration;

"3. The Secretary-General shall include in his budgetestimates for the financial year 1950 a programme imple-menting the objectives of the present resolution."

3. Recommendations of the Sub-Commission on Economic Development

Concerning Technical Assistance

In this connexion, the Sub-Commission on Eco-nomic Development, at its second session in June1948, made a series of recommendations concerningthe provision of technical assistance to under-developed countries. The majority of these recom-mendations were embodied in resolution 200 (III),adopted by the General Assembly on 4 December1948.53 By adopting this resolution, the GeneralAssembly laid down certain policies under whichtechnical assistance for economic developmentwould be provided by the United Nations.

4. Revised Proposals for Trainingin Public Administration

At its eighth session, the Economic and SocialCouncil deferred consideration of the UnitedNations programme for training in public ad-ministration to its ninth session. Before submit-ting the pertinent report to the ninth session,however, the Secretary-General, as requested inCouncil resolution 132 (VI), invited the advice ofthe International Civil Service Advisory Board,which met for the first time in March 1949, inconnexion with the International Centre. TheBoard devoted four meetings to the study anddiscussion of the matter, expressing its opinion

on the objectives of the resolution and the mainaspects of a practical programme. The Boardthought that the United Nations should make amodest start, avoiding risk of failure through over-expansion or the duplication of training institu-tions and facilities already existing.

In the light of the previous study, the Secretary-General reviewed his proposals and submitted tothe ninth session a revised report (E/1336). Tofurther the objectives of General Assembly reso-lutions 200(III) and 246(III), within the lim-ited proportions recommended by the InternationalCivil Service Advisory Board, the Secretary-Gen-eral recommended that the International Centrefor Training in Public Administration carry outa programme of action for 1950 covering, amongothers, the following activities:

(a) Periodic international administration sem-inars;

(b) A system of fellowships and scholarshipsfor senior and junior civil servants;

(c) Assistance to Governments in developingpublic administration training facilities and pro-grammes;

(d) Facilitation of the exchange of technicalinformation on public administration subjects,with particular reference to a grant to the Inter-national Institute of Administrative Sciences.

The estimated cost during 1950 was $206,000(E/1336/Add.l).

5. Consideration by the Economic andSocial Council at its Ninth Session

The Council considered this report (E/1336)at its 313th plenary meeting on 28 July 1949.A number of delegations, including those of Aus-tralia, Belgium, Denmark, France and the UnitedKingdom, which had criticized the adoption ofGeneral Assembly resolution 246(III), expressedgeneral agreement with the programme which,they felt, was of a more modest and practicalnature and more generally co-ordinated within theframework of the general plan for technical as-sistance to under-developed countries. The desir-ability of maximum co-ordination with the UnitedNations technical assistance activities was stressed

The discussion in the Council also placed con-siderable emphasis upon the maximum use ofexisting institutions in the programme, and uponadvanced training through seminars, the inter-change of experience, and joint studies. Disagree-ment was largely concentrated on the nature andextent of the training of civil servants in junior

53 See pp. 437-38.

Economic Questions

grades, and on the Secretary-General's proposalto grant the sum of $10,000 in 1950 to the Interna-tional Institute of Administrative Sciences atBrussels, Belgium. The representative of theUSSR considered that public officials could bebetter trained in seminars and schools organizedat the national level and adapted to the administra-tive conditions peculiar to each country; theestablishment of an international centre wouldcause unjustifiable expenditure by the UnitedNations.

A joint draft resolution (E/1460 and Rev.l)was submitted by the representatives of Brazil,Chile, China, India, Lebanon and Venezuela and,after a paragraph-by-paragraph vote, adopted atthe 313th plenary meeting on 28 July 1949, asresolution 253 (IX). The first paragraph wasadopted by 15 votes to 3; the second paragraph, by13 votes to 4, with 1 abstention; the third para-graph, by 15 votes to 3. The joint draft resolutionwas adopted, as a whole, by 15 votes to 3. Thetext of the resolution reads as follows:

"The Economic and Social Council,"Taking note of General Assembly resolution 246

(III) concerning the establishment of an InternationalCentre for Training in Public Administration, and thereport of the Secretary-General on international facilitiesfor the promotion of training in public administration,

"Approves the report of the Secretary-General concern-ing the structure and functions of the International Cen-tre for Training in Public Administration, including therecommended programme of action for 1950; and

"Requests the Secretary-General to report to a subse-quent session of the Council on the arrangements con-sidered desirable to co-ordinate the programme fortraining in public administration with the programme oftechnical assistance."

A French amendment, as subsequently rewordedby the representative of Belgium, to delete inparagraph 2 the words "concerning the structureand functions of the international centre fortraining in public administration including", thusamending the paragraph to read: "Approves theprogramme of action for 1950 recommended inthe report of the Secretary-General", was rejectedby 3 votes in favour to 11 against, with 4 absten-tions.

G. UNITED NATIONS SCIENTIFIC CONFERENCE ON THE CONSER-VATION AND UTILIZATION OF RESOURCES (UNSCCUR)

Pursuant to resolution 32 (IV), adopted by theEconomic and Social Council at its fourth sessionin March 1947, the United Nations Conference onthe Conservation and Utilization of Resources wascalled for the purpose of exchanging informationon techniques in this field, their economic costsand benefits, and their inter-relations.

The Conference met at Lake Success from 17August to 6 September 1949; preparations for ithaving been made, in accordance with the Council'sresolution, by the Secretary-General with theadvice of a standing Preparatory Committee. Overa thousand individuals from more than fifty coun-tries participated; of these, some five hundredexperts contributed papers, while some sevenhundred, including a number of the authors, at-tended the Conference. The experts were selectedby the Secretary-General in three ways: nom-ination by Member Governments and by otherGovernments which were members of regionalcommissions; nomination by non-governmentalorganizations, learned societies and other or-ganizations; and nomination by the PreparatoryCommittee. Each contributed to the Conference inan individual capacity. ILO, FAO, UNESCO andWHO co-operated in the planning and develop-ment of the conference programme.

The Conference devoted itself solely to theexchange of ideas and experience on the matteramong engineers, resource technicians, economistsand other experts in related fields; its primary con-cern was the practical application of technicalknowledge to resource management and humanuse. It did not, therefore, make recommendationsto Governments or organizations.

The programme of the Conference was sub-divided into six major sections corresponding tothe following principal resource fields: minerals,fuels and energy, water, forests, land, and wildlifeand fish. These sections comprised fifty-four meet-ings. In addition, there were eighteen plenarymeetings devoted to broader resource subjects.54

The main topics, on which papers were readand discussions took place in the plenary meet-ings, included: the world resource situation (thelegacy of resource depletion, the increasing pres-

54 For further details on the work of the Conference, seeUNSCCUR Proceedings, Volume I: Plenary Meetings(E/Conf. 7/7). The introduction to this volume in-cludes details on the preparation, organization and con-duct of the Conference as well as a list of all officers andparticipants. It also includes the Secretary-General'sreport on the United Nations Scientific Conference onthe Conservation and Utilization of Resources to thetenth session of the Economic and Social Council, issuedseparately as E/1579.


sure of resources); a world review of criticalshortages (food, forests, minerals, fuels); theinterdependence of resources (the complementarynature of European resources, the planning of landuse for full production with special reference toEuropean conditions); the use and conservation ofresources; the development of new resources byapplied technology; education for conservation;resource techniques for less-developed countries;and the integrated development of river basins.

The central problem posed at the Conferencewas the adequacy of resources to meet growingdemands; the Conference showed that scientificknowledge can discover and create new resourcesand husband better those already in use, so thata new era of prosperity awaited mankind if moderntechniques were universally applied to resources.A recurring theme throughout the Conference,expressed by many of the experts, was the waste-ful depletion of resources associated with modernwar, and the elimination of war as a condition ofeffective long-run conservation. In this connexion,more than one scientist stated that it was the obli-gation of the experts to participate in the politicaland economic scene actively, in order to ensurethat their discoveries and knowledge were put toproper use.

With regard to the relationship of conservationto use, it was pointed out that the appropriatestandard was conservation in human effort to meethuman needs; excessive preoccupation with con-servation was detrimental when new discoverieswere continually being made.

The Conference focussed its attention on prob-lems relating to the development of existingresources, the interdependence of resources, andnew resources; in particular those of tropical landsand forests, and "creatable resources", such asfood from algae, seaweed, food yeast and fatsynthesis. The need for adequate resource surveys

and inventories was stressed. Emphasis was alsolaid on the inter-relations of the various techniquesin the progress of resource development.

The question of techniques for under-developedcountries formed the subject of a large part of thediscussions. They covered, among other things,the techniques essential to accelerate the mostefficient development of the local processing ofraw materials produced in the less-developed coun-tries where this was desirable from an economicstandpoint. The question of mutual contributionof industrialization and improved agriculturaltechniques to the economic development of theunder-developed countries was also raised, as wellas the problem of the adaptation of techniques tothe special conditions of the under-developedcountries. The discussions also dealt with specialconditions essential for the education and train-ing methods both for conservation and developmentand, in this connexion, the important role to beplayed by local, national and regional technicalinstitutes, and extension methods of bringing edu-cation directly to the farm. They stressed thevast contribution to be made by improved health,not only to better living of populations, but totheir economic development.

Following the Conference, the United StatesGovernment sponsored and arranged a field-studytrip, to enable the experts attending the Confer-ence to observe and study industrial and govern-mental projects and methods of conservation andutilization of resources in the eastern part of theUnited States.

The full texts of the papers presented to theplenary and section meetings and the recordsof discussions are being published, in order thatthe work of the Conference will be available tothe specialists in the field who were unable toattend.

H. DISCRIMINATION IN INTERNATIONAL TRADE

The question of "Discriminations practised bycertain States in international trade obstructingnormal development of trade relations and con-trary to the Purposes and Principles of the UnitedNations Charter," an agenda item proposed byPoland (A/C.2/125 and A/C.2/137), was con-sidered at the third regular session of the GeneralAssembly, at the 69th and 71st to 76th meetingsof the Second Committee on 2, 4, 5 and 9 to 12November 1948, and at the Assembly's 164th and165th plenary meetings on 26 November 1948.

The representative of Poland, in presenting adraft resolution (A/C.2/137) on the subject, statedthat he found it necessary to draw attention, ascontrary to the letter and spirit of the UnitedNations Charter, to the kind of discrimination bywhich a country refused to maintain normal com-mercial relations with another country, not onaccount of reasons justified by economic circum-stances, but because of purely political considera-tions. As examples of such discriminatory prac-tices, he cited the licensing policy of the United


States towards certain countries located in EasternEurope, which was preventing Poland from obtain-ing many important commodities; the biasedattitude of the International Bank for Recon-struction and Development towards the countriesof Eastern Europe, and the provisions of the UnitedStates Economic Co-operation Act of 1948.

With regard to the latter, the representative ofPoland charged that the United States Governmenttried to extend such discriminatory measures toother countries, with which Poland maintainedcommercial relations and which were signatoriesof bilateral agreements with Poland. He referred,in particular, to section 117 (d) of the EconomicCo-operation Act under which, he declared, theAdministrator had the right to prevent the exportof all raw materials and semi-manufactured prod-ucts to any of the countries participating in theMarshall Plan, if those commodities might servein the production of finished products likely to beexported in turn by those countries to any Euro-pean country not participating in this Plan.

The draft resolution declared that all discrimi-nation in the field of commercial and credit policyshould be considered as contrary to the principlesof the United Nations Charter and of nationalsovereignty. In particular, it referred to Articles1 and 55 of the Charter, which stressed the impor-tance of international co-operation and definedthe principles on which such co-operation shouldbe based; namely, equal rights and self-determina-tion of peoples. These principles, the represent-ative of Poland stated, meant that differences inthe economic development of nations should betaken into account when framing the economicrelations between nations. The same criteria couldnot be applied to rich, highly industrialized coun-tries and to poor, under-developed countries;equality of rights in economic relations betweentwo such countries would result in economic andpolitical dependence of the weaker country uponthe stronger one.

The representative of Poland further stated thatthe freedom of a State to determine its own policy,domestic and foreign, within the framework ofinternational law and the United Nations Charter,was one of the basic freedoms for the protectionof which the United Nations was brought intobeing. He argued that attempts by one country toenforce a change in the policy of another by meansof economic pressure were inconsistent with theprinciples of the Charter. Furthermore, such dis-crimination hampered the development of inter-national trade and the reconstruction of a num-ber of countries. The draft resolution thus recom-mended all Members to refrain from using such

measures of economic discrimination. This recom-mendation, the resolution declared, should beadopted by the Economic and Social Council as itsbasic principle in dealing with problems of inter-national relations.

The representative of the United States, inreplying to the Polish charges, gave instanceswhich, he said, showed some of the high-lights ofthe United States efforts to establish the rule ofnon-discrimination. In the "most-favoured-nation"policy adopted after the First World War, theReciprocal Trade Agreement Act of 1934, theAtlantic Charter, the Declaration by United Na-tions, the Lend-Lease Agreements, the agreementsreached at Bretton Woods, and during the nego-tiations of peace treaties with the Balkan Statesand the discussions at the Belgrade Conferenceconcerning navigation on the Danube, theUnited States Government, he maintained, hadendeavoured, whether in bilateral or multilateralnegotiations, to obtain the agreement of otherGovernments to the general rule of non-discrimina-tion. He explained that the Havana Charter foran International Trade Organization, drawn up bythe United Nations Conference on Trade andEmployment in 1948, was founded on the prin-ciple of non-discrimination. Further, the GeneralAgreement on Tariffs and Trade, which had al-ready entered into force, contained provisionsconcerning non-discrimination similar to those inthe Havana Charter.

The representative of the United States con-tended that such export controls as the UnitedStates still maintained were for the purpose ofsecuring an equitable distribution of commoditiesin short supply and of assisting the EuropeanRecovery Programme. In addition, the nationalsecurity of the country was given its due consider-ation in the formulation of United States exportpolicy. The rights of Governments to prohibit orrestrict the export of goods for direct or indirectuse by foreign military establishments, he remarked,was generally recognized. It was not, however, theintention of the United States to impose an em-bargo on trade with any country. The foremostobjectives of the European Recovery Programmeconcerned the development, to the fullest possibleextent, of peaceful trade between the countries ofEastern and Western Europe and peaceful economicdevelopment throughout Europe.

He viewed as false the allegation that the UnitedStates controlled the export programmes of thecountries of Western Europe through the Eco-nomic Co-operation Act of 1948. The provisionsof this Act were meant to ensure that materials


provided under the Act would not be used in-directly for unauthorized purposes.

The representative of the United States statedthat the Polish delegation was attempting to sub-stitute a new conception of non-discrimination ininternational trade for that set forth in the HavanaCharter. He declared that his delegation couldnot agree that bilateral agreements should providea guiding principle in international trade, nor thatthey constituted the best means of ensuring equal-ity and lack of discrimination; indeed, it consideredthat under the bilateral system, elements other thaneconomic could most easily be injected into traderelations.

In support of the Polish draft resolution, therepresentatives of Czechoslovakia, the UkrainianSSR, Yugoslavia and the USSR stressed the follow-ing points:

(a) The keystone of the United States pro-gramme of economic and political expansion wasthe Marshall Plan. Such an attitude towards inter-national trade agreements was contrary to theprinciples of the United Nations Charter.

(b) The United States Government had in addi-tion attempted to impose the same discriminatorypolicies on the countries of Western Europe par-ticipating in the Marshall Plan and, as a result,international trade was shrinking.

( c ) Bilateral agreements under existing condi-tions were most capable of ensuring to all Statesaccess on equal terms to the raw materials of theworld and full participation in the apportionmentof goods by means of trade.

The representatives of France and the UnitedKingdom denied that the bilateral agreements,which their Governments had signed with theUnited States pursuant to the Economic Co-operation Act, compelled them to practice anydiscrimination; nor was any secret protocol annexedto the agreements regarding their interpretation orcontaining supplementary provisions. The repre-sentatives of Belgium and the Netherlands madesimilar statements.

Recalling that the principles of non-discrimina-tion in trade had been thoroughly studied by theUnited Nations Conference on Trade and Employ-ment, the representative of France submitted adraft resolution (A/C.2/143) which included arecommendation that, pending the entry into forceof the Havana Charter, Member States be guidedby the principles relating to non-discriminationlaid down therein, with due regard to the provi-sions concerning general exceptions, which in-cluded, in particular, those deemed necessary forthe protection of the essential security interestsof a Member State. The draft resolution further

stated that the United Nations Charter implieda general rule of non-discrimination precludingany measures calculated to exercise political pres-sure, subject to the provisions concerning economicsanctions under Article 41.

The representatives of Australia, Canada andthe United Kingdom gave their support to theFrench proposal. However, the representative ofPoland argued that, since the Havana Charter wasnot yet in force, the general principles of thatinstrument could not be recognized. He con-tended that his draft resolution could not bechallenged on the ground that it was inconsistentwith another valid international agreement. Fur-thermore, he argued that the provisions of thatCharter did not cover cases in which discriminatorypractices were enforced for purely political reasons.

The representatives of Iraq and Egypt objectedto the references to Article 41 of the United Na-tions Charter in the French draft resolution, on theground that there was no connexion between thegeneral principle of non-discrimination and Article41. Discrimination, they felt, was an economicmeasure voluntarily applied by one State againstanother, whereas the provisions of Article 41were to be carried out by all Members of theUnited Nations in common, against another, forpolitical reasons. Both representatives submittedamendments to the French proposal (Egypt inA/C.2/145; Iraq in A/C.2/146), which woulddelete mention of Article 41.

Objection to the French proposal was expressedby the representative of Norway, who consideredthat the representatives of countries, such as theUSSR, which had not participated in the HavanaConference, should not have a majority decisionimposed on them obliging them to follow theprinciples embodied in the Havana Charter. Therepresentatives of Egypt and Mexico also de-clared that their Governments could not be boundby the provisions of an international legal instru-ment which had been signed, but not yet ratified.

The representative of Poland subsequentlystated that he was prepared to withdraw his draftresolution, provided the French proposal couldbe so amended as to take into account the factthat the Havana Charter dealt only with theeconomic aspects of non-discrimination. He sub-mitted a series of amendments (A/C.2/148) tothe French draft resolution to that effect and sug-gested that the question be referred to the Eco-nomic and Social Council at its next session. Therepresentative of France said that he could notaccept the amendments, as, in his opinion, theHavana Charter dealt with political discriminationby implication.


An amendment to the French draft resolutionwas also submitted by Czechoslovakia (A/C.2/144and Rev.l), which would delete references to theHavana Charter and request Member States toabstain from unilateral economic measures of anykind other than that admitted by internationalagreements between them.

Two further draft resolutions were proposed:that of China (A/C.2/147), transmitting to theEconomic and Social Council, for its consideration,the question of trade discrimination; and the jointdraft resolution of Syria, Norway, Denmark andBelgium (A/C.2/150 and A/C2/150/Rev.l),requesting the Rapporteur of the Second Com-mittee to give a general account of the debates inhis report to the General Assembly. In this con-nexion, the representatives of the United Statesand France argued that referring the question tothe Council was not a satisfactory solution.

After further discussion, the Committee adopted,at its 76th meeting on 12 November 1948, thedraft resolution presented by Syria, Norway, Den-mark and Belgium (A/C.2/150/Rev.l), by 28votes to 6, with 13 abstentions, as follows:

"The Second (Economic and Financial) Committeeof the General Assembly

"1. Having considered the draft resolutions on tradediscrimination submitted by Poland, France and China,and the amendments submitted thereto,

"2. Decides to take no action on these draft resolu-

tions and to request the Rapporteur to give in his re-port to the General Assembly a general account of thedebate which has taken place in the Second Committeeon the subject of discrimination in international trade."

The Assembly considered the report of theSecond Committee (A/733) at its 164th and165th plenary meetings on 26 November 1948.At the 164th meeting, the representative of Polandreintroduced the Polish draft resolution (A/739)on the ground that a resolution submitted to aCommittee in connexion with an item on theagenda must either be accepted or rejected, oraccepted in an amended form. The General As-sembly, on 26 November, rejected the Polish draftresolution by a roll-call vote of 33 to 6, with 8abstentions, as follows:In favour: Byelorussian SSR, Czechoslovakia, Poland,

Ukrainian SSR, USSR, Yugoslavia.Against: Argentina, Australia, Belgium, Brazil, Canada,

Chile, China, Costa Rica, Denmark, Egypt,Ethiopia, France, Greece, Haiti, Liberia, Luxembourg,Mexico, Netherlands, New Zealand, Norway, Pakistan,Panama, Peru, Saudi Arabia, Siam, Sweden, Syria,Turkey, Union of South Africa, United Kingdom, UnitedStates, Uruguay, Yemen.Abstaining: Afghanistan, Burma, Colombia, Cuba, India,

Iran, Iraq, Philippines.

The President therefore declared that, sincethere was no other proposal before the Assembly,it would merely take note of the resolution adoptedby the Second Committee.

I. TRANSPORT AND COMMUNICATIONS

At its third session, held from 21 to 30 March1949, the Transport and Communications Commis-sion reviewed international developments in thefields of transport and communications. It wasparticularly concerned with questions relating to(1) facilitation of the international movement ofpersons and goods; (2) problems in the field ofshipping; (3) problems in the fields of the Inter-national Trade Organization and the Inter-Gov-ernmental Maritime Consultative Organization;(4) co-ordination of activities in the fields of avia-tion, shipping, telecommunications and meteor-ology with respect to safety of life; (5) problemsin the field of inland transport; and (6) transportstatistics.

In addition, the Commission concluded its con-sideration of the application of the Central Coun-cil of International Touring by deciding not torecommend the granting of consultative status tothat organization. The Council, in resolution 133-(VI) A of 3 March 1948, had requested the adviceof the Commission in this respect.

The report of the Transport and Communica-tions Commission (E/1311) was considered dur-ing the ninth session of the Council, at the 337thplenary meeting on 12 August 1949. The variousdecisions taken are given below.

1. Facilitation of the InternationalMovement of Persons and Goods

a. TRAVEL, PASSPORTS AND FRONTIER FOR-MALITIES

The Commission examined problems, and noteddevelopments, in the field of travel. A report(E/CN.2/63), prepared by the Secretariat at therequest of the Economic and Social Council, formedthe basis of its discussions. This report containedthe replies of thirty-eight Governments to aninquiry concerning the progress made on the reduc-tion, simplification and unification of passportsand frontier formalities, with particular referenceto the recommendations of the Meeting of Ex-


perts on Passports and Frontier Formalities, heldin Geneva in 1947.55 It included comments onspecific recommendations of the Meeting of Ex-perts concerning passports, visas, police control,currency control and facilities for changing money,customs inspection of baggage, and public healthinspection. The report showed, in particular, thata number of countries had eliminated, on a bilateralor on a unilateral basis, their visa requirements,and had conformed with the recommendations inso far as was compatible with existing conditions.

On the Commission's recommendation, theCouncil adopted resolution 227 (IX) F, by 15votes to 3, instructing the Secretary-General tocontinue to follow the progress in the fields ofpassports and frontier formalities and to keep theTransport and Communications Commission dulyinformed. At the same time, it decided to deferany further inquiry to Governments concerningthe matter until after the Commission's fourthsession.

The representative of the USSR expressed hisopinion that the question of passports and frontierformalities was one of domestic concern to Gov-ernments, and not within the competence of theCommission or of the United Nations.

b. BARRIERS TO THE INTERNATIONAL TRANS-PORT OF GOODS

At its second session, the Transport and Com-munications Commission had considered a reportof the International Chamber of Commerce (E/-C.2/59), which contained twelve recommendationsfor promoting the freest possible flow of inter-national commerce. These twelve recommendationscalled for:

(1) The reduction of the number of documents re-quired in the international transport of goods,

(2) The abolition of consular invoices and certifi-cates of origin,

(3) The abolition of consular visas for commercialinvoices and of commercial association certificates forinvoices,

(4) The abolition of the transit manifest by countriesrequiring it,

(5) The elimination of the requirement by someGovernments that certain forms be filled out to aidthem in the compilation of export and import statis-tics,

(6) The abolition of governmental regulations re-quiring the shipper to classify goods under specific sec-tions of customs tariff laws of the importing country,

(7) Exemption for the shipper in furnishing indi-cations of value other than those appearing in his con-tract,

(8) The simplification of regulations regardingweights and measures in documents,

(9) The abolition of the obligation to place marksof origin on packaging used solely for carriage,

(10) The adoption of standardized regulations formeasurement of shipping tonnage,

(11) The fixation, for import and export licenses,of a sufficient duration of validity, and

(12) The simplification of all customs formalities.

The Commission, at its third session, considereda report on barriers to the international transportof goods (E/CN.2/49), prepared by the Secre-tariat in conjunction with the Executive Secretaryof the Interim Commission for the InternationalTrade Organization (ICITO). This report dealtwith the respective competence of the variousinternational bodies concerned in regard to thetwelve recommendations. The Commission ex-pressed the hope that Member States would find itpossible to relax or remove existing restrictions tothe international transport of goods without wait-ing for international action.

After discussing a draft resolution recommendedby the Commission which, inter alia, outlined thedivision of responsibilities of the internationalbodies concerned with respect to certain recommen-dations, the Council accepted an amendment theretoby the United States (E/1521), by 15 votes tonone, with 2 abstentions, as its resolution 227-(IX) G This resolution requested Members toreport their views on the twelve recommendationsof the International Chamber of Commerce (withcertain exceptions) to the Secretary-General, andinstructed him to report to the next session of theCommission and to the Interim Commission ofthe International Trade Organization on the resultof this inquiry to Governments (the latter provi-sion was added as a result of an oral request bythe representative of the United Kingdom).

The exceptions instanced were:"those recommendations or parts thereof relating to:

"Public health formalities—falling within the pur-view of the World Health Organization;

"Negotiable air consignment note—now being dealtwith by the International Civil Aviation Organization;

"Maritime tonnage measurement—covered in resolu-tion I of the third session of the Transport and Com-munications Commission."

The Council, in the same resolution, transmittedto the Members of the United Nations the Secre-tariat report and the report of the InternationalChamber of Commerce, and drew the attention ofMember Governments to the work already doneby the International Civil Aviation Organizationin its "Standards and Recommended Practices:Facilitation of Air Transport".

55 For details on the recommendations of the Meetingof Experts, see Yearbook of the United Nations, 1946-47, pp. 503-4.


2. Problems in the Field of Shipping

a. UNIFICATION OF MARITIME TONNAGEMEASUREMENT

The Transport and Communications Commis-sion reviewed a memorandum by the Secretariat(E/CN.2/57) summarizing the history of inter-national efforts to achieve unification of maritimetonnage measurement, and noting that a confer-ence, held in Oslo in 1947, had signed a conven-tion, to which had been annexed the draft "Inter-national Regulations for Tonnage Measurementof Ships", completed by a technical committee ofthe League of Nations in 1939. It expressed theopinion that, while the Inter-Governmental Mari-time Consultative Organization would eventuallybe the appropriate agency to handle the subject,it was desirable to avoid delay resulting from thefact that IMCO had not yet started its activities.Pursuant to a recommendation by the Commission;the Council, at its ninth session, adopted unani-mously resolution 227 (IX) B, instructing theSecretary-General (1) to circulate the Secretariat'smemorandum and the Oslo Rules to Member Gov-ernments, inviting their views on the desirabilityand practicability of promoting a more generaland closer adherence to the Oslo Rules, and in-forming them that the memorandum was alsobeing forwarded to the Preparatory Committee ofIMCO for information; (2) to forward the Secre-tariat's memorandum and the Oslo Rules to thePreparatory Committee of IMCO for information;and (3) to report to the next session of theTransport and Communications Commission onthe results of the inquiry to Governments.

b. MARITIME SHIPPING AND LATIN AMERICA

At its seventh session, the Economic and SocialCouncil, in resolution 147(VII)D, requested theTransport and Communications Commission tomake a further study of problems of maritimeshipping, including freight rates, affecting LatinAmerica. The Commission, after considering therequest, found that the information then availableto it did not constitute a sufficient basis for exami-nation of the matter. There was some question asto whether the Economic Commission for LatinAmerica (ECLA) should be used as an inter-mediary, or whether requests for informationshould be made directly to the Governments of theLatin-American countries.

At the Council's ninth session, it was agreed by9 votes to 4, with 5 abstentions, that Governments

of the Latin-American countries should be askeddirectly by the Secretary-General for their viewson transport problems in Latin America, and thatthe Secretary-General would also obtain whateverinformation might have already been collectedby ECLA.

The Council adopted by 13 votes to 1, with 4abstentions, resolution 227(IX)D, instructing theSecretary-General (1) to request from the Gov-ernments of the Latin-American countries theirprecise views on the problems of maritime ship-ping, including freight rates, affecting Latin Amer-ica, and to obtain whatever information might havebeen already collected by ECLA, which would en-able the Transport and Communications Commis-sion to determine the elements of the problem; (2)to communicate to these Governments the extractsof the summary records of the Transport andCommunications Commission's discussions con-cerning this problem; (3) on the basis of thereplies from Governments, to collect any furtherrelevant information; (4) to forward the viewsof the Governments, and such information as theSecretary-General might have collected, to theTransport and Communications Commission, inorder to enable the Commission at its next sessionto consider in what manner the problem couldbest be dealt with.

3. Problems in the Field of theInternational Trade Organization and

the Inter-Governmental MaritimeConsultative Organization

Having encountered difficulties in dealing withcertain urgent problems, particularly as regardstonnage measurement and barriers to the inter-national transport of goods, the Commission drewthe attention of the Council to the fact that theConventions establishing the International TradeOrganization and the Inter-Governmental Mari-time Consultative Organization had not yet comeinto force, and that the solution of various urgentand important problems affecting internationaltransport would be greatly facilitated when theseorganizations started to function.

During the debate on the Commission's reportat the ninth session of the Council, the repre-sentative of Denmark objected to the Commission'sstatement on the grounds that the tasks referredto therein could be dealt with by other interna-tional organizations.


4. Co-ordination of Activities in theFields of Aviation, Shipping,

Telecommunications and Meteorologyin Regard to Safety of Life

The Commission reviewed a report (E/CN.2/-51) by the Secretariat summarizing developmentssince the second session of the Commission, withrespect to co-ordination of activities in the fieldsof aviation, shipping, telecommunications andmeteorology in regard to safety of life at sea andin the air. The report, which was prepared on theinstructions of the Economic and Social Council(resolution 147(VII)F), was concerned partic-ularly with action taken by the Safety of Life atSea Conference, and with activities undertaken bythe specialized agencies in the light of the report(E/CN.2/20/Add.l) of the Preparatory Com-mittee of Experts on Co-ordination of Safety atSea and in the Air, which met in London in Jan-uary and February 1948.

The Preparatory Committee of Experts, in para-graph 21 of its report, drew attention to the factthat the task of co-ordination at the internationallevel could be facilitated if adequate co-ordinationat the national level was maintained. It concluded,inter alia, that the International Civil AviationOrganization, the Inter-Governmental MaritimeConsultative Organization, the International Mete-orological Organization, and the InternationalTelecommunication Union should co-operate tomake this co-ordination fully effective. Thus, theagencies would maintain liaison through theirsecretariats, would promote the exchange of infor-mation among themselves, would send observersto participate in the various conferences and meet-ings, at which problems of safety at, and over, thesea were considered, and submit appropriate itemsfor consideration of the agency holding such meet-ings. However, any obligation or recommendationon safety at sea applying to aviation, meteorology,shipping or telecommunications would be imposedor promulgated through the conventions, standards,regulations or recommendations of the appropriateagency.

The Commission commended the internationalorganizations in the field of transport and commu-nications for the steps already taken by them toco-ordinate their activities, and recommendedthat the general measures for assuring such co-ordination in the future, as proposed in paragraph21 of the report of the Preparatory Committee ofExperts, should be followed by the organizationsin co-ordinating their work on all problems ofinterest to two or more of the organizations.

The Council, at its ninth session, adopted by 15votes to none, with 3 abstentions, resolution227 (IX) E, instructing the Secretary-General tobring to the attention of each of the organizationsrepresented at the Preparatory Committee of Ex-perts the resolution adopted by the Transport andCommunications Commission at its third session.

5. Problems in the Field ofInland Transport

a. CLASSIFICATION OF INLAND TRANSPORT

The Transport and Communications Commis-sion, having noted the need for clarity in discussionand study and for the avoidance of overlapping andconflict in fields of competence, decided to classifyas within the field of inland transport: rail trans-port, road transport, inland waterways and pipe-lines.

In the discussions, some members held that theproblem of a definition or classification in the fieldof inland transport had not yet been sufficientlystudied and that the question should be postponedto a later session. Other members felt that regionalinland transport bodies should be able, when neces-sary, to consider, in conjunction with inland trans-port matters, problems in other fields.

It was, therefore, decided to add a statement tothe effect that this classification was not designedto preclude regional economic commissions of theUnited Nations from considering, if necessary, inconjunction with inland transport, problems inother fields of transport, in co-operation with thespecialized agencies concerned, within the frame-work of the agreements between these specializedagencies and the United Nations.

b. CO-ORDINATION OF INLAND TRANSPORTA report on the co-ordination of inland trans-

port (E/CN.2/58), prepared by the Secretariatin accordance with resolution 147 (VII) I of theCouncil, took into account the preliminary resultsof a study of the International Chamber of Com-merce (ICC), together with information receivedfrom other international bodies, such as the Inter-national Union of Railways (UIC) and the Pan-American Railway Congress Association. Thereport, which was submitted to the Commission'sthird session, reproduced the preliminary statementof the ICC and included a summary of the problemof co-ordination as it had developed.

To facilitate its task of reporting on this ques-tion, the ICC had set up a Committee of Independ-ent Experts which, in its preliminary statement,


reviewed the past activities of the ICC in thisfield, stressed the danger of divergent national co-ordination policies for international traffic, andpointed to recent changes which had increasedthe complexity of the problem. In addition, thestatement classified the existing co-ordinationpolicies applied in some countries, and enumer-ated the points to be examined in the future bythe Committee. Finally, it suggested that Govern-ments establish supreme transport councils con-sisting of representatives from every transport in-dustry and from transport users, to advise themconcerning their transport policy.

The International Union of Railways issued tworeports: the first, on the question of "Competitionand Co-operation between Road and Rail withrespect to Internal and International Passengerand Goods Traffic", the second, a note on rail/roadco-ordination. As one of its conclusions, the UICposed the question of whether it would not be inthe interest of the community as a whole, as wellas of the transport users in particular, to revise therailway rate system now most commonly in use(established on the ad valorem principle) to con-form to the system most common among roadcarriers (based on the cost principle). It con-cluded that efforts towards co-ordination must bemade to ensure that the two means of transport(1) were placed on equal terms as regards obliga-tions of public service, and (2) were co-operatingto give satisfactory liaison in respect to goods,passenger and baggage traffic.

In their consideration of the Secretariat's report,members of the Commission drew attention tovarious aspects of the problem of co-ordination,inter alia, to the existence of three points of viewwith respect to this problem, namely those of Gov-ernments, of carriers and of transport users. Theypointed out that the comments of the UIC weremade from the point of view of railway carriers,whilst those of the ICC were made from the pointof view of users. It was also pointed out that therewere two aspects of co-ordination which should bedistinguished, namely (1) the physical integrationof transport, e.g., the use of road transport tosupplement railways, and (2) the division offunctions between the different forms of transport.Furthermore, insufficient attention had been paidto the international aspects of the problem ofco-ordination.

The Commission felt that the information givenin the reports of the UIC and the ICC could use-fully be supplemented with further informationon the viewpoint of highway and inland waterwayinterests or systems. The Secretariat was thereforerequested to seek the views of international or-

ganizations concerned with inland transport onthis subject, and particularly on the Secretariatreport; to follow developments in this field; andto make a recommendation to the Commissionas to the advisability and practicability of a formalsurvey by the Secretary-General with the collabo-ration of Governments, at the same time suggest-ing the form which such a survey should take.

c. ROAD TRANSPORT(1) United Nations Conference on Road and

Motor Transport

At the Commission's second session, it recom-mended that a world conference be convenedto conclude a new convention to supersede theobsolete Conventions of 1926 on Road and MotorTraffic. The Economic and Social Council, byits resolution 147 (VII) B, decided to hold theworld conference, and added a third Convention tothose mentioned by the Commission for revisionby the Conference, namely, the 1931 Conventionon Road Signals.

The United Nations Conference on Road andMotor Transport was accordingly held in Genevain August-September 1949. Using as a basis forits discussions the draft convention prepared bythe Inland Transport Committee of the EconomicCommission for Europe, and the 1943 Conventionon the Regulation of Inter-American AutomotiveTraffic, the Conference concluded as its principalinstruments a Convention on Road Traffic, and aProtocol on Road Signs and Signals (E/CONF.8/-47-50). With respect to the subject of road signsand signals, the Conference was unable to come toan agreement on a world-wide basis, as it provedimpossible to reconcile the differences betweenthe system in use in Europe and, with modifica-tions, in a number of Asian and African countries,with that in use in the United States and, withvariations, in much of the Western Hemisphere.The Conference therefore opened for signaturethe Protocol on Road Signs and Signals, embody-ing a revision of the 1931 European Conventionon Road Signs and Signals, and, at the same time,its Final Act recommended to the Council thatefforts be continued to secure the establishmentof a uniform system on a world-wide basis. Itfurther recommended that the Transport andCommunications Commission, assisted by experts,be entrusted with the task of studying this prob-lem, and of advising the Council on the furthersteps which should be taken subsequently to reachsuch a world-wide uniform system.

The Conference also recommended that theCommission review periodically developments con-cerning international road transport and, on the


basis of these reviews, advise the Council on whatfurther international action was desirable, whetherby conference or otherwise.

(2) Further Problems of Road Transportand Developments

At the Commission's second session, it noted theexistence of other problems in the field of roadtransport in addition to those mentioned in theConventions of 1926 on Road and Motor Traffic(see above), and requested the Secretariat to re-port to the Commission on further developments.

This Secretariat report (E/CN.2/54), con-sidered at the Commission's third session, coveredproblems of international road transport in general,i.e., customs formalities, civil liability and compul-sory insurance and fiscal charges. In addition, itdealt with certain problems peculiar to commer-cial road transport, including that of authorizationfor the operation within the various countries ofcommercial vehicles registered abroad and theproblem of the road transport contract.

As regards customs formalities, the Sub-Commit-tee on Road Transport of the Inland TransportCommittee of the Economic Commission forEurope had prepared three draft conventions ontouring, on commercial road vehicles, and on theinternational transport of goods by road, respec-tively. The Commission felt that the question offurther steps, including the holding of a furtherconference to deal with additional questions,should be considered by the 1949 World Confer-ence, but that the European Governments shouldnot feel precluded from putting into effect, in themeantime, the provisions of the ECE draft cus-toms conventions on an interim basis, if they sodesired.

d. REGIONAL PROBLEMS AND ORGANIZATIONIN THE FIELD OF INLAND TRANSPORT

In its further consideration of the question ofregional organization in the field of inland trans-port, the Commission expressed the opinion thatthe ECAFE Meeting of Inland Transport Experts,which had been recommended by the Transportand Communications Commission and endorsed by

ECAFE and the Economic and Social Council(resolution 147(VII)C), should be convened inadvance of the next session of ECAFE. Considera-tion of the Commission's recommendation at itssecond session for a similar meeting to be held inthe Middle East had been postponed by the Coun-cil, together with the proposal for the establish-ment of an Economic Commission for the MiddleEast. Finally, the Commission noted informationconcerning steps being taken to organize interna-tional collaboration in transport matters in Centraland Southern Africa.

6. Transport Statistics

The Economic and Social Council, at its seventhsession (resolution 147(VII)H), had instructedthe Secretary-General to make a study of the prob-lem of establishing the economic and technicalstatistical requirements in the transport field (giv-ing priority to statistical requirements of an eco-nomic nature), of achieving comparability in re-spect of the information to be collected, and ofstandardizing forms for the collection of this in-formation.

The Commission, at its third session, noted withappreciation a preliminary report prepared by theSecretariat on transport statistics (E/CN.2/53 andE/CN.3/54). The report was a study of the firstof these questions, namely, the establishment ofeconomic and technical statistical requirements inthe transport field. It contained a minimum listof statistical series of international interest whichit would be useful to have available on an inter-nationally comparable basis. The series were con-sidered from the standpoint of availability, as wellas from that of their economic and technical im-portance.

The Commission also requested the Secretariatto continue this study along the lines indicated,taking into consideration the views expressed dur-ing the Commission's discussion. It was felt de-sirable that the Secretariat, at the appropriate mo-ment, should consult the Governments concerningthe present or future availability of the statisticalseries.

J. FISCAL QUESTIONS

The Fiscal Commission held its second sessionat Lake Success from 10 to 25 January 1949, dur-ing which it discussed a number of substantivefiscal problems, on the basis either of proposalssubmitted by Member Governments or of docu-ments prepared by the Secretariat. The Commis-

sion submitted a report on its session (E/1104)to the Economic and Social Council which con-tained requests for studies to be undertaken bythe Secretariat, as well as recommendations toMember Governments and comments on the pub-lic finance chapter of the Provisional Question-


naire, approved by the Trusteeship Council on 25April 1947 (T/44).56

The Economic and Social Council consideredthis report, during its ninth session, at the 48th,49th and 54th meetings of its Economic Commit-tee on 6 and 19 July, and at its 304th plenarymeeting on 22 July 1949, and endorsed the reportin resolution 226(IX).

During this session, the Council had before ita resolution (E/AC.6/W.41) presented by thedelegation of the USSR to the effect that the FiscalCommission should be abolished, on the groundthat it "had achieved no practical results . . ., andall indications suggested that it was not expectedto yield results". The representative of the USSRemphasised that his "proposal referred to the workof the Commission and not to that of the Secre-tariat. There was . . . no reason why the Secre-tariat should not continue its work on financialquestions." He added that a further reason for hisproposal was his belief that the work of the re-gional commissions and other functional commis-sions overlapped with that of the Fiscal Commis-sion. After the Commission's usefulness had beenendorsed by the representatives of Australia, Brazil,Chile, China, France, India, Lebanon, the UnitedKingdom and the United States, the proposal wasrejected in the Council by a vote of 2 in favour to15 against, with 1 abstention.

In adopting the draft resolutions proposed bythe Fiscal Commission, the Economic and SocialCouncil recommended to Member Governments"that they actively pursue a policy of negotiatingbilateral agreements wherever appropriate for theavoidance of double taxation," in view of "the im-portance of utilizing all appropriate means to pro-mote the expansion of trade and investment amongnations" (226(IX)D). It urged Member Gov-ernments to submit speedily to the Secretariat thedocuments and information needed in its work,and, when convenient, to designate a liaison of-ficer or service for this purpose (226(IX)C).

The Council had previously, at its eighth session,admitted to consultative status, in category B, theInternational Fiscal Association and the Interna-tional Institute of Public Finance, non-govern-mental organizations with local groups in a num-ber of Member countries which are engaged inscientific research in the fields of taxation and pub-lic finance in general (214(VIII)D).

The resolution adopted by the Council at itsninth session (222(IX)B) also outlined a com-prehensive programme of public finance activities,which it requested the Secretary-General to carryout "within the limits of available financial re-sources".

First on the list of this programme was the re-quest that the Secretariat "continue to render tech-nical assistance to Member Governments on theirrequest". The Secretariat has during 1948 and1949 given such assistance in the field of publicfinance to the Governments of Brazil, Haiti,Ecuador, Chile and Bolivia.

The Council also urged the importance of build-ing up a fiscal information centre within the Secre-tariat, which would enable it "to carry out thestudies and compilations requested by the FiscalCommission, to render technical assistance to Mem-ber Governments upon their request, and to fur-nish authoritative information on fiscal matters toother organs of the United Nations and to thespecialized agencies". This information is, in fact,used for such various matters as briefing expertswho are sent on technical missions to under-devel-oped countries; preparing public finance chaptersfor the economic surveys of various geographicalregions, such as those covered by the EconomicCommission for Latin America and the EconomicCommission for Asia and the Far East; and givinginformation to specialized agencies on the tax as-pects of their particular fields of interest.

More specifically, the Secretariat has been issu-ing public finance data on a series of countrieswhich contain quantitative data on the budgets andthe public debt of these countries during the post-war years. The Council asked the Secretary-Gen-eral to continue and expand this work. This series,it was decided, was to be expanded during 1950into a monthly publication entitled "Public FinanceInformation Papers" and evaluating the publicfinance situation in individual countries, withspecial emphasis on economic development. Thefirst papers, to be published beginning January1950, were to deal with Egypt and Colombia.

During 1948-49, the Secretariat continued todistribute statements on the tax legislation ofcountries in so far as they affect foreign nationals,assets and transactions.

In November 1948, the volume InternationalTax Agreements57 was published, containing thetext of more than a hundred bilateral agreementsfor the avoidance of double taxation and the pre-vention of tax evasion concluded since publicationof the League of Nations' collection of such agree-ments, in six volumes from 1928 to 1936. Thevolume also included a cumulative index of allagreements published in this volume and theLeague of Nations series. A supplement contain-ing the texts of tax agreements entered into sincethe publication of this volume was scheduled for

56 See pp. 141-42.57 United Nations Publications, Sales No.: 1948. XVI.2.


publication in the summer of 1950; it will alsocontain tables for all known tax agreements, in-dicating for each agreement its current status(ratification, suspension, termination etc). TheCouncil asked the Secretariat to continue the com-pilation and study of international tax agreements.

Among the special studies requested of theSecretariat by the Economic and Social Council,the first to be completed, for publication in Feb-ruary 1950, was entitled The Effects of Taxation onForeign Trade and Investment.58 The problem washere analysed mainly in relation to the economicdevelopment of under-developed countries, bothfrom the point of view of the importance of suchtax revenues in the expanding budgets of develop-ing countries, and from the point of view of theeffects which such taxes may have in channellingforeign investment toward under-developed coun-tries. The study dealt extensively with the prob-lem of double taxation and the part which un-ilateral tax relief by legislation and internationaltax agreements has played in eliminating certainharmful effects of such double taxation on the freeflow of foreign investment. The Council, at itsninth session, requested that these studies be con-tinued.

Other special studies initiated during 1949 atthe Council's request dealt with (1) the taxationof corporate profits and dividends, especially inthe case of international enterprises, whose activi-ties and stockholders are distributed in more thanone country and thus subject to several nationaltax jurisdictions, and (2) the taxation of estatesand successions, where assets or heirs are locatedin different countries.

The importance of improved techniques for fis-cal administration, especially in under-developedcountries, has been the object of special studies by

the Secretariat, particularly in connexion with thenew Public Administration Training Centre.Studies of budgetary techniques have been in-itiated.

The Secretariat co-operates with specializedagencies in studies on fiscal problems which areof particular importance to them. Thus, a jointstudy was initiated in 1949 with ICAO on the tax-ation of international civil aviation, in order todetermine to what extent such taxes, direct as wellas excises, are in harmony with general tax prin-ciples and any special considerations which mighthave to be introduced to distinguish the taxationof international aviation from that of other inter-national business activities. With the InternationalMonetary Fund, the Secretariat has started a studyof the problem of tax-payers who find themselvesunable to convert all or part of their income orassets in a foreign country into the currency oftheir home country to which they owe taxes onaccount of such assets or income. Co-operation be-tween the Fund and the Secretariat continues inthe analysis and publication of public finance datareceived from Governments in reply to their jointPublic Finance Questionnaire.

In order to expand the operation facilities ofthe Secretariat in this field, which offers so manycomplex and technical variations in every country,the Council requested that the Secretary-General"seek, where appropriate, the co-operation of uni-versities, scientific institutions or learned societieson certain individual research projects of a moreregional or specialized nature". The Secretariathas taken advantage of this facility in order toobtain the co-operation of certain universities andnon-governmental organizations, both in the col-lection of documents and information and in thepreparation of studies on specific questions withinthe field of public finance.

K. STATISTICAL ACTIVITIES

The Statistical Commission held its fourth ses-sion from 25 April to 6 May 1949, at which itconsidered three major problems as follows:

1. Standard international classifications,2. Regional statistical activities,3. Technical assistance and training.

The work of the Commission on these and otherproblems was embodied in a report (E/1312),which was considered at the 337th and 338th plen-ary meetings of the ninth session of the Economicand Social Council on 12 August 1949.

1. Standard InternationalClassifications

At its third session, the Statistical Commissionhad stressed the importance of the establishmentof statistical classifications for international use.In particular, it recommended that work shouldproceed on a revision of the Minimum List ofCommodities for International Trade Statistics.59

58 United Nations Publications, Sales No.: 1950. XVI.1.59 See Yearbook of the United Nations, 1947-48, pp.

562-63.


As a first step, the Commission, in April 1948,decided that this Minimum List, which had beenprepared by the Committee of Statistical Expertsof the League of Nations in 1937, should be re-examined and reviewed to make it more suitablefor the analysis of the present character of inter-national trade. A draft revision was prepared bythe Secretary-General and circulated, in June 1948,to all Member Governments, and, by January 1949,comments had been received from forty-two coun-tries and five international organizations. TheSecretary-General then assembled a group of ex-pert consultants, which prepared a revised Mini-mum List of 592 items appropriate to the presentpattern of international trade. At its fourth session,the Statistical Commission was of the opinion thatthe new list, with some amendment, might provemore acceptable for statistics of external tradethan the League of Nations Minimum List. Ittherefore recommended that the Council requestthe Secretary-General to circulate the items of therevised List to Governments for comments, inorder that a final decision might be made in 1950,at the fifth session of the Statistical Commission.

The International Labour Office, at the requestof the Statistical Commission, presented a progressreport on a standard international classification ofoccupations (E/CN.3/C.1/12). The Commissionasked that its observations on the classification betransmitted to the International Labour Office, re-quested that the Secretary-General be kept in-formed of the subsequent stages in establishing theproposed classification, and urged that the workof the International Labour Office in this field becarried forward as rapidly as possible, in orderthat the classification might be ready for use byGovernments in the national censuses of popula-tion to be taken in 1950 and 1951.

2. Regional Statistical Activities

The second important question considered bythe Commission concerned the integration of thestatistical work of the regional commissions, andthe interest of statisticians in various regional or-ganizations in the development of internationalstatistics. At its seventh session, the Economic andSocial Council, on the recommendation of theStatistical Commission, requested the Secretary-General to encourage and facilitate consultationamong the representatives of the statistical agen-cies of European Governments (149(VII)B). Asa result, a meeting of regional statisticians wasconvened in Geneva from 14 to 18 March 1949,and attended by statisticians representing seven-

teen European countries. Reports on this meetingwere presented to the fourth session of the Com-mission, and several technical questions raised atthe European regional meeting were placed uponthe agenda of the Commission for consideration inits programme of work.

The Commission considered that regional prob-lems were of sufficient importance to warrant con-tinued consideration by the Statistical Office andby the appropriate staff of various economic com-missions. Accordingly, the Commission recom-mended a procedure whereby the Secretary-Gen-eral, in consultation with appropriate Governments,would convene meetings of regional statisticiansand prepare adequate documentation for discussionof the particular regional problems involved. Thismethod would ensure proper co-ordination be-tween regional activities and those of the Statis-tical Commission in developing world-wide stand-ards. These recommendations were approved bythe Economic and Social Council (resolution231(IX)B).

3. Technical Assistance and Training

At its seventh session, the Council recognizedthat a shortage of adequately educated and trainedstatisticians was impeding the development ofstatistics. As suggested by the Commission, ittherefore recommended that the Secretary-General,in collaboration with UNESCO, other interestedspecialized agencies, the International StatisticalInstitute and other appropriate international or-ganizations, arrange for a survey of the needs foreducation and training in statistics and the formu-lation of an international programme to meet theseneeds.

The Commission noted with approval the Secre-tariat's proposals for strengthening the activities ofthe Statistical Office to enable it to provide tech-nical assistance to statistically under-developedcountries, and supported measures proposed underGeneral Assembly resolution 200(III).60 It sug-gested that the Secretary-General be asked to makeprovision for: the creation of a field service to pro-vide technicians to visit and advise countries re-questing assistance; the allocation of fellowshipsfor statistical training; the conduct of statisticalcourses under the specialized agencies; and the con-duct of demonstration projects to offer field experi-ence to statistical officers who do not have accessto such training.

The discussion of this question at the ninth ses-sion of the Council emphasized the importance

60 See pp. 437-38.


of a programme of technical assistance in the fieldof statistics, as a part of the general plan of tech-nical assistance being developed by the UnitedNations and the specialized agencies. The Councilthen proceeded to adopt, with slight amendment,the recommendations of the Commission (resolu-tion 231(IX)D).

As recommended by the Commission, the Coun-cil noted the steps already taken by UNESCO andthe International Statistical Institute to initiate aninternational programme and urged them to takeappropriate steps to further the improvement ofeducation in statistics on an international scale(resolution 231 (IX)C).

4. Research in Statistical Methods

At its third session, the Statistical Commissionhad suggested a number of topics on which it wasdesirable that the Secretariat should undertake re-search work on the statistical methods to be em-ployed. These topics had included population andvital statistics, national income, industrial produc-tion, prices and transport statistics. The Secretariathad undertaken preliminary studies in each of thesesubjects and in submitting them to the fourth ses-sion, had asked the Commission for comments andfor suggestions as to the directions in which fur-ther inquiries should proceed.

In the field of population and vital statistics,the Commission recommended that the Secretary-General study the different systems of vital regis-tration, in order to formulate recommendations forcomparability of definitions, the adequacy andcomparability of classifications and tabulations, andthe development, generally, of effective registra-tion systems. The Commission also endorsed thepreliminary plans presented for the preparation ofa manual of national income statistics containingdetailed descriptions of the proposed standarddefinitions of the totals and components, togetherwith a set of model tables for the uniform report-ing of national income statistics.

As a result of previous recommendations of theTransport and Communications Commission andthe Statistical Commission, approved by the Coun-cil at its seventh session (resolution 147(VII)H),the Secretary-General had prepared a report out-lining the scope and character of the statistics ofroad, rail, air and sea transport collected in differ-ent countries. The report also indicated which ofthe more important series were at present avail-able in national statistics. The Commission, hav-ing available the comments of the third session ofthe Transport and Communications Commission(E/1311) on this report, as well as information

regarding the statistical work of the Inland Trans-port Committee of the Economic Commission forEurope, requested that the Secretary-General con-tinue the study, taking into account the observa-tions made by the Commission at its fourth ses-sion. These included the point that statistics re-lating to different types of transport had been devel-oped separately, and it was difficult to obtain com-parable figures of traffic carried by each form oftransport. Another observation called attention tothe urgent need to devise some means of obtainingreliable figures of the amount and kinds of com-modities carried by road vehicles; in this regard,it had been suggested that such figures might beobtained on the basis of sampling.

5. Statistical Sampling

The Sub-Commission on Statistical Samplinghad been requested by the Commission and cer-tain of the specialized agencies to consider severalproblems relating to the application of statisticalsampling in different fields. Its report on itssecond session, from August to September 1948(E/CN.3/52), contained recommendations on theapplication of sampling methods to family budgetenquiries, censuses of agricultural production, cen-suses of population, and the collection of statisticsof man-power and national income. A major as-pect of its work involved an examination of theuses being made of fields of subject-matter. As aresult of this examination, the Sub-Commissiondrew up a set of recommendations regarding thepreparation of reports of sampling surveys and aproposed standard terminology for use in samplingsurveys.

The Statistical Commission noted with satisfac-tion the work done by its Sub-Commission andconsidered that the recommendations on standardterminology for reporting sampling surveys wouldbe of great value. It endorsed the Sub-Commis-sion's recommendation that this terminology shouldbe brought to the notice of all interested statis-tical offices and statisticians. In considering thefuture programme of work of its Sub-Commission,the Statistical Commission recommended that theSub-Commission continue to accord priority tothose statistical problems of Governments of cur-rent and practical importance in the field ofstatistical sampling.

6. Statistical Publications

In its review of the plans of the United Nationsand of the specialized agencies for the collection


and publication of statistics, the Commission con-sidered a report prepared by the Secretariat (E/-CN.3/73), dealing with further plans for theMonthly Bulletin of Statistics, the Supplement(now available in English, French and Spanish),the Demographic Yearbook, the Statistical Year-book and the Statistical Papers Series.61 Attentionwas drawn to the progress made in the develop-ment of greater international comparability in thecurrent statistics presented in the Monthly Bulletinof Statistics. The experience of the Secretariat incollecting material for the first issue of the Statis-tical Yearbook, published in September 1949, in-dicated the need for increased effort to developmore adequate information in the fields of socialstatistics. The report also noted the early appear-ance of the World Trade Summary, to be issuedhenceforth as a statistical paper at quarterly in-tervals, and the plans for a second and revisededition of the National Income Statistics of Vari-ous Countries, which would cover statistics for theperiod 1938 to 1949.

The Commission noted with satisfaction the re-port of the Secretariat on the publication pro-gramme of the Statistical Office. It also consideredparticularly the suggestions made by the Popula-tion Commission as to the future publication ofthe Demographic Yearbook; it took note of theirviews as regards the regular publication of theYearbook, the number of countries to be coveredand new items proposed for inclusion (E/1313).

7. Activities of the Statistical Office

The executive agency of the Statistical Com-mission and its Sub-Commission on StatisticalSampling is the Statistical Office of the United Na-tions. As such, it is the central statistical unit inthe Secretariat responsible for the co-ordination ofUnited Nations statistics, conducts statistical in-vestigations on behalf of various parts of the UnitedNations, and conducts research and supplies statis-tics for a wide variety of special purposes.

During the period under review, the StatisticalOffice continued the development of variousbranches of statistics. Research leading to the for-mulation of standard definitions for world trans-port statistics, for the compilation of national in-come aggregates and for social accounts, as wellas studies in the methods of collecting and com-piling vital statistics were undertaken.

In connexion with the work for the training ofstatisticians and the development of internationalstatistics, training centres were established in Mex-ico City, Paris, Cairo and New Delhi. Training

manuals, lectures and institute courses materialswere prepared and, in addition, the StatisticalOffice began publication of a quarterly StatisticalNotes, containing a review of the important devel-opments in national statistics.

The work in international trade statistics wasaccelerated and the United Nations began pub-lication of a quarterly Summary of World TradeStatistics, in co-operation with the Food and Agri-culture Organization and the International Mone-tary Fund.

8. Transfer of Responsibility forEconomic Statistics Under 1928

Convention

At its sixth session, the Economic and SocialCouncil had recommended, in resolution 114-(VI), that the General Assembly approve a draftresolution and protocol with an annex which wouldenable the United Nations to assume the functionsand powers previously exercised by the League ofNations under the Convention of 14 December1928 relating to economic statistics.62

The question was considered by the GeneralAssembly at its third regular session, at the 88thto 91st meetings of the Sixth Committee, held on30 October and from 2 to 4 November 1948, andat the 160th plenary meeting of the Assembly on18 November 1948.

During its discussions the Sixth Committeeadopted by 21 votes to 14, with 13 abstentions,an Argentine proposal, calling for the deletionin the draft resolution proposed by the Economicand Social Council of that paragraph directing theCouncil and the Secretary-General, in view of theGeneral Assembly's resolution of 9 February 1946."to suspend all action under the Protocol and theConvention mentioned above with respect to theFranco Government in Spain as long as this Gov-ernment is in power." A second proposal, sub-mitted by the representative of Haiti, calling forthe deletion of article 11 of the Convention (seebelow), was defeated by 13 votes in favour to 17against, with 14 abstentions.

Article IV of the draft Protocol, relating to themeans by which States may become Parties, wasredrafted to permit, inter alia, the signature ofStates "with reservation as to acceptance, followedby acceptance." The Committee then adopted the

61 For an account of the different types of statisticalpublications arising out of the work of the StatisticalOffice, see Yearbook of the United Nations, 1947-48, pp.564-65.

62 See Yearbook of the United Nations, 1947-48, pp.566-67.


amended text of the draft Protocol and annex, by29 votes to 4, with 10 abstentions.

The report of the Sixth Committee (A/713)was considered at the 160th meeting of the Gen-eral Assembly on 18 November 1948. Among therepresentatives speaking in favour of the adoptionof the draft resolution and draft Protocol and an-nex were those of Belgium, Cuba and the UnitedKingdom, who explained that they had voted fortechnical reasons in favour of the deletion of thatparagraph in the Economic and Social Councildraft resolution relating to Franco Spain. In brief,that paragraph had been superfluous since Spainhad not signed the 1928 Convention and therewas therefore no possibility that it would beallowed to participate in activities carried outunder the terms of that Convention. The Assem-bly had adopted resolutions excluding FrancoSpain from participation in the United Nations orany of its specialized agencies or in internationalconferences held under United Nations auspices,and the action taken in the Sixth Committee hadnot been intended to modify those resolutions.

While agreeing that the paragraph in questionhad been unnecessary because of the Assemblyresolutions which were still in force, the repre-sentative of Norway pointed out that, in his view,the point raised was not within the scope of theSixth Committee but within that of the First Com-mittee, which had the question of Franco Spain onits agenda; for this reason, Norway would abstainfrom voting on the proposal. The representativeof Uruguay likewise considered that the questionlay outside the competence of the Sixth Commit-tee, and because the decision taken by that Com-mittee had been subjected to various interpreta-tions, he would also abstain from voting on theresolution.

The representative of Venezuela had favouredthe retention of the paragraph in question which,though not indispensable, would make it perfectlyclear that Franco Spain should not take part inany of the activities of the United Nations. Hisdelegation still maintained that position because itintended to persist in its repudiation of FrancoSpain. Stating that he would also vote againstadoption of the resolution, the representative ofGuatemala pointed out that a vote in favour wouldbe misinterpreted and that the political manoeuvrehad already been exploited to the full.

According to the representative of the USSR,the United Nations could not take on itself thefunctions to be exercised under the InternationalConvention of 1928 when a majority of the Mem-bers of the United Nations were not signatories tothat Convention. The United Nations already had

several organs and departments, including a Statis-tical Commission and a Statistical Office, to carryon activities connected with that Convention, andtherefore the USSR would oppose the adoptionof the draft resolution. His delegation also con-sidered that the Sixth Committee had wronglyadopted article 11 of the draft Protocol which, inits opinion, would lead to discriminatory practicesconcerning the extension of the Convention toTrust Territories and Non-Self-Governing Terri-tories.

The report of the Sixth Committee (A/713),including the draft resolution and draft Protocoland annex as proposed by the Economic and So-cial Council, was voted upon by roll-call andadopted by the Assembly by 30 votes to 11, with12 abstentions. The resolution (255( I I I ) ) andProtocol and annex read as follows:

"The General Assembly,"Desirous of continuing international co-operation re-

lating to economic statistics,"Approves the Protocol which accompanies this reso-

lution;"Urges that it shall be signed without delay by all

the States which are Parties to the International Con-vention relating to Economic Statistics, signed atGeneva on 14 December 1928;

"Recommends that, pending the entry into force ofthe aforementioned Protocol, effect be given to its pro-visions by the Parties to the Convention;

"Instructs the Secretary-General to perform the func-tions conferred upon him by the Protocol upon its entryinto force."

PROTOCOL AMENDING THE INTERNATIONAL CONVEN-TION RELATING TO ECONOMIC STATISTICS, SIGNED

AT GENEVA ON 14 DECEMBER 1928The Parties to the present Protocol, considering that,

under the International Convention relating to Eco-nomic Statistics, signed at Geneva on 14 December 1928,the League of Nations was invested with certain dutiesand functions for the continued performance of whichit is necessary to make provision in consequence of thedissolution of the League of Nations, and consideringthat it is expedient that these duties and functionsshould be performed henceforth by the United Nations,hereby agree as follows:

Article IThe Parties to the present Protocol undertake that, as

between themselves, they will, in accordance with theprovisions of the present Protocol, attribute full legalforce and effect to, and duly apply, the amendments tothat instrument as they are set forth in the annex tothe present Protocol.

Article IIThe Secretary-General shall prepare a text of the

Convention as revised in accordance with the presentProtocol, and shall send copies for their informationto the Governments of every Member of the UnitedNations and every State non-member of the United Na-tions to which this Protocol is open for signature andacceptance. He shall also invite Parties to the aforesaid


Convention to apply the amended text of that instru-ment as soon as the amendments are in force, even ifthey have not yet been able to become Parties to thepresent Protocol.

Article IIIThe present Protocol shall be open for signature or

acceptance by any of the Parties to the Convention of14 December 1928 relating to Economic Statistics, towhich the Secretary-General has communicated for thispurpose a copy of this Protocol.

Article IVStates may become Parties to the present Protocol by:(a) Signature without reservation as to acceptance;(b) Signature with reservation as to acceptance, fol-

lowed by acceptance;(c) Acceptance.Acceptance shall be effected by the deposit of a formal

instrument with the Secetary-General of the UnitedNations.

Article VThe present Protocol shall come into force on the

date on which two or more States shall have becomeParties thereto.

The amendments set forth in the annex to the presentProtocol shall come into force when fifteen States havebecome Parties to the present Protocol, and consequentlyany State becoming a Party to the Convention, afterthe amendments thereto have come into force, shall be-come a Party to the Convention as so amended.

Article VIIn accordance with paragraph 1 of Article 102 of the

Charter of the United Nations and the regulations pur-suant thereto adopted by the General Assembly, theSecretary-General of the United Nations is authorizedto effect registration of this Protocol and of the amend-ments made in the Convention by the present Protocolon the respective dates of their entry into force, and topublish the Protocol and the revised text of the Con-vention of 14 December 1928 relating to EconomicStatistics as soon as possible after registration.

Article VII

The present Protocol, of which the Chinese, English,French, Russian and Spanish texts are equally authentic,shall be deposited in the archives of the United NationsSecretariat. The Convention to be amended in accordancewith the annex being in the English and French lan-guages only, the English and French texts of the annexshall equally be the authentic texts and the Chinese,Russian and Spanish texts shall be translations. A certi-fied copy of the Protocol, including the annex, shall besent by the Secretary-General to each of the States Par-ties to the Convention of 14 December 1928 relating toEconomic Statistics, as well as to all States Members ofthe United Nations.

In faith whereof the undersigned, being duly au-thorized thereto by their respective Governments, signedthe present Protocol on the date appearing opposite theirrespective signatures.

Done at Paris this ninth day of December 1948.

ANNEX TO THE PROTOCOL AMENDING

In article 2, section III (A): "Food and AgricultureOrganization of the United Nations" shall be substi-tuted for "International Institute of Agriculture".

Article 8 shall read:"In addition to the particular functions which are en-

trusted to the Economic and Social Council under theprovisions of the present Convention and the instru-ments annexed thereto, the Council may make any sug-gestions which appear to be useful, for the purpose ofimproving or amplifying the principles and arrangementslaid down in the Convention concerning the classes ofstatistics dealt with therein. It may also make suggestionsin regard to other classes of statistics of a similarcharacter in respect of which it appears desirable andpracticable to secure international uniformity. It shallexamine all suggestions to the same end which may besubmitted to it by the Governments of any of the HighContracting Parties.

"The Economic and Social Council is requested, ifat any time a desire to that effect is expressed by notless than half of the Parties to the present Convention,to convoke a conference for the revision and, if it seemsdesirable, the amplification of the present Convention."

Article 10: In its first paragraph, "Economic and So-cial Council" shall be substituted for "Committee of Ex-perts referred to in article 8".

In its second paragraph, "Council" shall be substi-tuted for "Committee".

Article 11 shall read:"Any High Contracting Party may, at the time of

signature, ratification or accession, declare that, in ac-cepting the present Convention, he does not assume anyobligations in respect of all or any of his colonies, pro-tectorates, overseas territories or all Trust Territories forwhich he acts as Administering Authority; and thepresent Convention shall not apply to any territoriesnamed in such declaration.

"Any High Contracting Party may give notice to theSecretary-General of the United Nations at any timesubsequently that he desires that the Convention shallapply to all or any of his territories which have beenmade the subject of a declaration under the precedingparagraph, and the Convention shall apply to all theterritories named in such notice one year after its re-ceipt by the Secretary-General of the United Nations.

"Any High Contracting Party may, at any time afterthe expiration of the five-years period mentioned inarticle 16, declare that he desires that the present Con-vention shall cease to apply to all or any of his colonies,protectorates, overseas territories or all Trust Territoriesfor which he acts as Administering Authority, and theConvention shall cease to apply to the territories namedin such declaration six months after its receipt by theSecretary-General of the United Nations.

"The Secretary-General of the United Nations shallcommunicate to all Members of the United Nations andto non-member States to which he has communicateda copy of this Convention all declarations and noticesreceived in virtue of this article."

Article 12: Its second paragraph shall read:"The present Convention shall be ratified. As from the

date of entry into force of the Protocol signed at Paristo amend this Convention, the instruments of ratifica-tion shall be transmitted to the Secretary-General of theUnited Nations, who shall notify their receipt to allMembers of the United Nations and to non-memberStates to which he has communicated a copy of thisConvention."

Article 13 shall read:"From the date of entry into force of the Protocol

signed at Paris to amend this Convention, the present


Convention may be acceded to on behalf of any Mem-ber of the United Nations or any non-member State towhich the Economic and Social Council may decideofficially to communicate the present Convention.

"The instruments of accession shall be transmittedto the Secretary-General of the United Nations, whoshall notify their receipt to all Members of the UnitedNations and to non-member States to which he hascommunicated a copy of this Convention."

In article 15: "Secretary-General of the United Na-tions" shall be substituted for "Secretary-General of theLeague of Nations".

Article 16: In its first paragraph, "Secretary-Generalof the United Nations" shall be substituted for "Secre-tary-General of the League of Nations" and "Memberof the United Nations" shall be substituted for "Memberof the League".

Its second paragraph shall read:

"The Secretary-General shall notify all Members ofthe United Nations and non-member States to which hehas communicated a copy of this Convention of anydenunciations received."

In its third paragraph, "Members of the United Na-tions" shall be substituted for "Members of the League".

Article 17: Its second paragraph shall read:"The Governments of countries which are ready to

accede to the Convention under article 13 but desire tobe allowed to make any reservations with regard to theapplication of the Convention may inform the Secretary-General of the United Nations to this effect, who shallforthwith communicate such reservations to all Partiesto the present Convention and inquire whether they haveany objection thereto. If within six months of the dateof the communication of the Secretary-General no ob-jections have been received, the reservation shall bedeemed to have been accepted."

L. ECONOMIC COMMISSION FOR EUROPE (ECE)

Established by the Economic and Social Coun-cil on 28 March 1947 (resolution 36(IV)), theEconomic Commission for Europe held four ses-sions at Geneva, Switzerland, from its inceptionup to 31 December 1949. Its first session was heldfrom 2 to 15 May 1947,63 its second from 5 to 16July 1947, its third from 26 April to 8 May1948,64 and its fourth from 9 to 21 May 1949.The reports of the first and second sessions wereconsidered at the fifth session of the Council, inJuly-August 1947, the report of the third sessionat the Council's seventh session, in July-August1948, and the report of the fourth session at theCouncil's ninth session, in July-August 1949.

1. Committee Structure of theCommission

In accordance with its terms of reference, theCommission set up a number of technical commit-tees, sub-committees, working parties and groupsof experts to study special problems. The follow-ing was the committee structure of the Commis-sion as of 31 December 1949:Committee on Agricultural Problems (serviced by FAO

and ECE secretariats):(a) Working Party on Standardization of Perishable

Foodstuffs.Coal Committee:

(a) Allocations Sub-Committee:(i) Allocations Working Party.

(b) Sub-Committee on Economic and Technical Prob-lems:

(i) Classification Working Party.(ii) Utilization Working Party.(iii) Production Working Party.

Electric Power Committee:(a) Hydro Working Party:

(i) Alpine Study Group.(ii) Danubian Study Group.

(b) Thermal Working Party:(i) Silesian Study Group.(ii) Rhineland Study Group.

(c) Interconnections and Requirements WorkingParty.

(d) Statistical Working Party.( e ) Ad hoc Legal Working Party.

Industry and Materials Committee:(a) Housing Sub-Committee:

(i) Working Party on Technical Problems.(ii) Working Party on Economic Problems.

(b) Working Party on Refractory Materials.(c) Sub-committee on Fertilizers.(d) Consultations with Experts on the Engineering

Industry.Inland Transport Committee:

(a) Sub-committee on Rail Transport:(i) Group of Experts to Study a Uniform System

of Accountancy for Main-line Railways.(ii) Group of Experts for the Renewal and Con-

struction of Rolling Stock.(iii) Ad hoc Working Party on the Revision of

the Berne Convention.(b) Sub-committee on Road Transport:

(i) Working Party on Highways.(ii) Working Party dealing with Legal Ques-

tions.(c) Working Party on the Transport of Perishable

Foodstuffs:(i) Sub-group on Transport of Perishable Food-

stuffs by Rail.(ii) Sub-group on Refrigerated Road Transport

Equipment.(iii) Sub-group on Standardization of Packaging

and Conditions of Transport.(d) Working Party of Experts on Statistical Informa-

tion.(e) Working Party on Co-ordination of Transport.


64See Yearbook of the United Nations, 1947-48, pp.523-30.


Manpower Committee.Steel Committee.Timber Committee (serviced by FAO and ECE secre-

tariats).Committee on the Development of Trade.

2. Principal Activities of theSubsidiary Bodies of the Commission

The main activities of the subsidiary bodies hadpreviously centred on practical problems arisingin the evolution of the European economy. Thedevelopment of the economic situation in Europefrom one of shortages to one of more abundantsupplies made necessary a revision of the workingprogrammes of the subsidiary organs. The Com-mission recognized this fact when, at its fourth ses-sion in May 1949, it adopted a resolution instruct-ing its subsidiary committees to"continue their work in accordance with their terms ofreference, devoting attention to the solution of themain problems coming within their purview; terminat-ing any activities which are no longer useful; andconsidering what activities need to be undertaken orcontinued beyond 1950, with a view to reporting there-on to the fifth session of the Commission . . ."

In addition, the Executive Secretary was to pre-pare, on the basis of the reports of the committees,an over-all Secretariat report on an appropriatework programme for the committees after the year1950. The Executive Secretary's report, with thereports of the committees annexed, was to betransmitted to Governments two months before thefifth session.

The discussions during 1949 on future workprogrammes indicated that the majority of themembers of ECE felt that the committees shouldhenceforth deal with problems of a more long-term nature, as well as undertake studies and makerecommendations on the planning and co-ordina-tion of European economic development.

A full account of the activities of the Commis-sion and its subsidiary bodies from 9 May 1948to 21 May 1949 was given in the interim reportof the Economic Commission for Europe (E/1074),presented to the eighth session of the Economicand Social Council, and in the Commission's an-nual report (E/1328), submitted to the ninth ses-sion of the Council.

The activities of the committees included thefollowing:

a. COAL COMMITTEE

The Coal Committee, established at the Commis-sion's second session, continued its functions inthe fields of production and allocation, basing its

recommendations on the acceptance of Europeanself-sufficiency as its major objective.

During the period under review, however, thesituation changed from one of scarcity in coal pro-duction to one of more abundant supply. The Com-mittee stated in December 1949 that Europeanavailabilities were within a measurable distance ofmeeting over-all European needs, although supplydifficulties continued to exist in certain qualities ofcoal. The future work of the Committee was con-sidered in detail in the light of the changed situa-tion, and, the allocation functions having becomeless acute, the Committee turned to the study ofquestions of utilization and classification.

Certain modifications were made in the struc-ture of the Committee's subsidiary bodies. A Sub-Committee on Economic and Technical Problemswas established to deal with long-term problems ofproduction and consumption and to co-ordinatethe work of its working parties. The terms of refer-ence for the working parties were laid down at thesixth session of the Committee, in March 1949:accordingly, the Production Working Party con-cerned itself with aspects of solid fuel production,including questions on pitwood and mining equip-ment; the Working Party on Utilization studiedmethods by which complete and efficient utiliza-tion of European fuel supplies could best beachieved; and the Working Party on Classificationworked on the classification of coals with a viewto recommending measures designed to achieve aninternational coal classification. Other subsidiarybodies, including the Mining Equipment and Pit-wood Working Parties, were terminated. In viewof the increase in European supplies, problems ofbriquetting pitch, formerly under the BriquettingPitch Working Party, were to come under thepurview of the Production Working Party. Be-fore the Briquetting Pitch Working Party ceasedto function, however, it arranged an agreementwhereby 2,000 to 3,000 tons of briquetting pitchavailable for export from the United Kingdom/-United States Zone in Germany for each quarterof the year 1948-1949, would be allocated 80 percent to France, the remaining 20 per cent toBelgium.

Under the method of allocations established bythe Coal Committee, the Allocations Sub-Com-mittee and the Allocations Working Party recom-mended allocations, for the period from May 1948to the end of February 1949, for approximately18,700,000 tons of solid fuels; the total tonnagemoving under trade agreements being approxi-mately 30,100,000 tons. The main European sup-pliers were Poland, the United Kingdom and theUnited Kingdom/United States Zone of Germany.


This method based the allocations on "fluid" avail-abilities; that is, available solid fuels not exportedunder trade agreements but declared to the Sub-Committee for allocation. Reports by the Euro-pean members of the Sub-Committee gave theirrequirements and availabilities in terms of coaland coke by qualities. In the middle of 1948, theCommittee adopted a new basis of procedure toensure that European supplies were first allocated,in order to reduce extra-European imports. Con-sequently, no allocation from the United Stateswas recommended; instead, the United States rep-resentative was informed of European countries'deficits in each of the qualities for which alloca-tion had been recommended. Under this system,metallurgical coke requirements of steel-producingcountries were met by another formula, in whicheach steel-producing country's entitlement relatedto its maximum capacity for pig iron production,subject to a stabilizing factor to remove any dangerof violent fluctuations from the pattern of pre-vious allocations. The Sub-Committee also con-sidered a refinement of the allocations of cokingfines for metallurgical coke.

In 1949, the most important deficit in Europeremained in supplies of coking coal. As the re-sult of a study, undertaken at the request of theSteel Committee, on a detailed analysis of the con-sumption of coking coals, and of another study onthe utilization of solid fuels, the Coal Committeeadopted recommendations concerning the produc-tion of the maximum amount of coking coal andits use for metallurgical purposes. Among its rec-ommendations, it urged that the use of cokingcoals as fuel for industry, railways and thermalpower stations be discontinued to the greatestpossible extent, and requested the principal Euro-pean countries to make available the maximumproportion of coking fines and semi-bituminousfines for export (E/ECE/COAL/30).

At its fifth session, in November 1948, the CoalCommittee authorized a study of future trends ofsolid fuel production in Europe, taking into con-sideration the production programmes of the coal-producing countries, their development and in-vestment plans and productivity in the industry.

The Secretariat also undertook to compile aEuropean Coal Directory, in consultation with thecountries concerned. A Monthly Bulletin of CoalStatistics made available statistics of pitwood, pitch,productivity, coke, patent fuel, cumulative totalsof production, imports, exports and consumption.

b. COMMITTEE ON ELECTRIC POWERThe Committee on Electric Power, established

at the Commission's second session, kept under

review the problems relating to electricity sup-ply, and continued to assemble data on the differentenergy resources in Europe still capable of ex-ploitation, to study certain projects, to developthese resources, and to consider the ultimate co-ordination of the projects.

With regard to the exploitation of hydro-resources, reports were prepared on projects atLunersee and Otztal (in Austria), Fessenheim (inFrance), Our (in Luxembourg), Val di Lei (inItaly and Switzerland). These projects were re-viewed by the Committee during its fifth session.It was agreed that their further development beleft in the hands of the promoting countries; inthe case of the Lunersee and Otztal projects, thestage was reached where a preliminary agreementwas entered into between the Austrian Governmentand the Bizone Authorities on the future divisionof the output and the power cost structure. TheInternational Bank for Reconstruction and Devel-opment was informed of the financial aspects ofthe agreement.

More general reports were made on lignite re-sources of the Rhineland and on Silesian low-grade fines. A preliminary investigation was un-dertaken of the alternative means of supplyingBavaria with its power requirements.

To implement these projects, it became neces-sary to undertake more general studies to definecertain criteria to be used in the final assessmentof the projects. In this connexion, the Commit-tee undertook studies to cover the comparativelegislation governing international rivers and lakes,and the transmission of power; the effect of diver-sity factor on the total European peak load; andthe relative costs of coal transport and energytransmission. The availability of equipment andthe possible savings in material, time and costarising from a certain degree of standardizationwere also considered.

c. THE INDUSTRY AND MATERIALS COMMITTEEThe Industry and Materials Committee, in addi-

tion to dealing with a number of production bot-tlenecks hampering a fuller utilization of capacity,considered a wide range of problems, both of along-term and of an immediate nature, in theengineering, chemical, industrial materials andbuilding industries. Much of the work within thescope of this Committee called for close co-opera-tion with other technical committees.

The Industry and Materials Committee, and itsvarious subsidiary bodies, concerned themselveswith problems in the fields of fertilizers, ball bear-ings, high tension insulators, conveyor belts, re-fractory materials and ceramic insulators. In view


of the changing situation in many of these fieldsfrom one of shortages to more abundant supplies,the Committee devoted much of its time to dis-cussing the initiation of studies and the collectionand exchange of information.

On the basis of a report prepared by the Secre-tariat on the Engineering Industry in Europe (E/-ECE/IM/38), it was decided that the ExecutiveSecretary should continue to make surveys of thiskind, and to enter into direct technical consulta-tion with experts appointed by the Governmentsconcerned, as well as to study certain markettrends in the engineering industry.

At its third session in May-June 1949, the Com-mittee decided to invite the Committee on Agri-cultural Problems to explore the possibilities of in-creasing consumption in fertilizers and furtherutilization of farm machinery, and to assess theprobable level of demand. The Industrial andMaterials Committee felt that these studies wouldbetter enable it to determine the future course ofaction in these fields.

The Committee maintained a constant review ofthose shortages which continued to exist. Withregard to non-ferrous metals, it noted that increas-ing quantities of lead ores and lead might be pro-duced in Europe, provided certain types of equip-ment could be made available from Europeansources. Studies were accordingly undertaken onthe possibilities of international action. The Com-mitte, at its third session, reviewed these reportsand invited the Executive Secretary, after consult-ing the interested Governments and determiningwhether specific possibilities of increased produc-tion existed, to convene a meeting of experts toexamine the technical aspects of the problem, in-cluding the costs of production and requirementsof equipment for new installations. Consultationswere also to be held with interested Governmentson concrete measures which might assist in ex-panding production in sulphur and pyrites.Although bottlenecks in supplies of spare parts ofmaintenance equipment, refractory materials andhigh tension insulators were, in the main, over-come, the Committee noted that shortages re-mained in certain types of these supplies.

The Housing Sub-Committee reviewed the scopeof its work, in view of the need for increasedhousing construction. Among the studies under-taken were those dealing with problems regardingthe development of more reliable methods of meas-uring housing deficits, methods of financing em-ployed in different countries to encourage housingconstruction, the availability of skilled buildinglabour in Europe, and the distribution of buildingmaterials in Europe. Particular attention was given

to the methods of work to be followed in imple-mentation of a future work programme.

In addition, a special conference, held in October1949, recommended the establishment of an In-ternational Building Documentation Council, inorder to facilitate the exchange of documented in-formation between countries. A series of nationalcommittees would also be organized to carry outthe recommendations of the conference and thosesubsequently formulated by the International Coun-cil (E/ECE/111).

d. THE INLAND TRANSPORT COMMITTEE

The Inland Transport Committee was estab-lished, at the second session of the Commission,to act in a consultative and advisory capacity inthe field of inland transport in Europe, and wascharged with completing the essential tasks of theEuropean Central Inland Transport Organization(ECITO) after its dissolution in 1947. The Com-mittee set up subsidiary bodies, such as the Sub-Committees on Road Transport and on Rail Trans-port, the Working Party on the Transport of Perish-able Foodstuffs, as well as other working partiesand groups of experts.

With regard to road problems, the Sub-Com-mittee on Road Transport prepared a Draft In-ternational Customs Convention on Touring, aDraft International Customs Convention on Com-mercial Road Vehicles, and a Draft Customs Con-vention on the International Transport of Goodsby Road. In June 1949, the Committee approvedthe text of an agreement providing for the pro-visional application of these draft conventions, tocome into force on 1 January 1950, for a periodof three years. The agreement, which stipulatedthat signatory Governments agree to apply on areciprocal basis the provisions of the draft Con-ventions, was signed (subject to certain reserva-tions) by eleven European Governments during1949.

The Sub-Committee noted that agreements onthe lifting of restrictions of the freedom of theroad had achieved the increasing movement ofgoods in international traffic. Eight Governmentsand the authorities of the occupation zones ofWestern Germany had undertaken, from Decem-ber 1947 and for a period of six months, to grantor maintain freedom of transit for all goods trans-ported by road through their countries. CertainGovernments concluded other agreements to grantor maintain similar freedom of transit for all otherinternational transport of goods and passengers byroad. These agreements, which had been acceptedmeanwhile by additional Governments, were sub-


sequently extended to cover 1949. In May 1949,the Sub-Committee on Road Transport recom-mended their extension from 1 January 1950, fora period of one year, and by 20 October, fifteenGovernments had agreed to this.

As it was considered desirable that the agree-ments be expanded, a recommendation was madeto Governments as to the conclusion of bilateralor multilateral agreements to allow the picking upor setting down of tourists en route.

Draft provisions for insertion in a conventionon road and motor transport were also preparedby the Sub-Committee, at the request of the Eco-nomic and Social Council. The draft provisionsbecame one of the principal working documentsof the United Nations Conference on Road andMotor Transport, convened in August 1949.

Studies were also undertaken on problems ofcivil liabilities, compulsory insurance and the roadtransport contract. Thus, the Sub-Committee rec-ommended uniform arrangements by which motor-ists would be adequately insured against thirdparty risks when entering countries where com-pulsory insurance against risks had been intro-duced. In addition, a system of main internationaltraffic arteries and their desirable characteristicswas determined, and a map of such a network is-sued on the basis of information supplied by Gov-ernments.

With regard to railway problems, the Sub-Com-mittee on Rail Transport considered, inter alia, thereorganization of international railway bodies, bothgovernmental and non-governmental. It began theexamination of certain problems connected withthe revision of the Berne Conventions for Inter-national Transport by Rail (CIM and CIV).

The Inland Transport Committee approved areport of the Sub-Committee on Rail Transport,and noted that a large number of Governments hadconcluded bilateral agreements on restitution ofrolling stock and that the majority of countrieswere in agreement to repatriate rolling stock, theownership of which was not in dispute. Negotia-tions on the restitution of rolling stock had beenconducted within the Sub-Committee.

By September 1949, the figures regarding theidentification of rolling stock showed that over70 per cent of goods and wagons and passengercoaches in the participating countries had beenidentified. By the end of 1949, it was consideredprobable that the work of identification would becompleted in most of the participating countriesby the summer of 1950.

With regard to the problem of renewal and con-struction of rolling stock, a group of experts, in

October 1949, concluded that the European coun-tries had a manufacturing capacity for all categoriesof rolling stock far in excess of requirements forthe next five years. The Committee therefore rec-ommended the drawing up of a long-term plan fora more regular distribution of orders, and especiallyfor planning large orders during slack manufactur-ing periods, with a view to reducing the productioncosts of rolling stock and ensuring more stable em-ployment conditions for the workers in the in-dustry.

The Sub-Committee also undertook to study, inco-operation with the International Union of Rail-ways and the International Wagon Union, meth-ods for improving the utilization of rolling stockin international traffic. Other questions before theSub-Committee were the introduction of a uniformsystem of accountancy on main-line railways, themodernization of long-distance passenger trainfacilities, and the standardization of rolling stock.

An ad hoc Working Party on Co-ordination ofTransport was set up to determine what back-ground material was essential for the study of theproblem of co-ordination of transport. This Work-ing Party, at its first session, considered what essen-tial basic factors the preliminary studies on co-ordination should cover, and also defined the meth-ods to be adopted for the conduct of these studies.

The Inland Transport Committee approved ashort statistical questionnaire. Information is be-ing received regularly from fourteen countries inreply to this questionnaire. The statistics thus ob-tained are reproduced in the Quarterly Bulletin ofthe Inland Transport Statistics. Studies on theestablishment of statistics of movement of goodsin international traffic and on the development ofroad transport traffic statistics were initiated.

The Working Party on the Transport of Perish-able Foodstuffs embarked on a series of studiesconcerning the improvement of the transport ofthese goods. In the work, the co-operation of sev-eral international organizations was enlisted.

e. MANPOWER COMMITTEE

The Manpower Committee did not meet dur-ing the period covered by the present Yearbook.

f. STEEL COMMITTEE

Formerly a Sub-Committee of the Industry andMaterials Committee, the Steel Committee re-ceived full status at the third session of the Eco-nomic Commission for Europe. At each of itsmeetings, the Committee set up working partieson various questions, including coke, raw materialsfor steel-making, and statistics.


In dose collaboration with the Coal Commit-tee, the working party on coke formulated a methodfor allocating metallurgical coke for steel produc-tion. Under this method, used for the first timein May 1948, France, Luxembourg, Belgium, Italy,the Netherlands, Sweden, Yugoslavia, Finland,Hungary, Switzerland, Norway, Denmark, Portugaland Greece received allocations of metallurgicalfuels. The Steel Committee stressed constantly thenecessity of increasing metallurgical coke avail-abilities to the maximum, especially from theRuhr. Through 1948 and early 1949, coke avail-abilities increased until, in the first quarter of 1949,they were sufficient to meet all requirements. Allo-cations of foundry coke were also recommended.

In 1948, the Committee had recommended theintensification of scrap collection; in 1949, it rec-ommended that each country should reduce itsscrap consumption to the strict minimum com-patible with the highest production of pig iron,crude steel and castings. A small group of experts,designated as a Panel on Scrap and appointed atthe Committee's second session, continued toexamine the question. At the request of the SteelCommittee, fourteen countries submitted studieson their scrap situation. The Panel examined thatpart of the studies which dealt with scrap avail-abilities. On-the-spot investigations were carriedout in Belgium, France, Italy, Luxembourg, theNetherlands, Switzerland, the United Kingdomand the United States. It appeared that, in 1949,if no special measures were taken, Europe wouldbe faced with a deficit of 2.6 million tons of scrap.At its fourth session in February 1949, the Com-mittee adopted the Panel's recommendation thatGovernments should take special measures to in-crease to the maximum the scrap collection in thecountries or zones of occupation for which theywere responsible. Detailed practical measures, de-signed to achieve this purpose, were embodied inthe recommendation (Steel/22). The Panel onScrap was also authorized to supplement its docu-mentation and proposals concerning problems ofscrap availability by documentation on the utiliza-tion of scrap in the production of iron and steel.By the fifth session of the Committee in Septem-ber 1949, its work had been completed; the Com-mittee subsequently endorsed the Panel's views con-cerning the current and future scrap supply situa-tion in Europe, and recommended that it be keptin abeyance until new questions arose.

At its fourth session, the Steel Committee recog-nized that rich iron ore supplies in 1949 wouldprobably fall short by some 14 per cent (3 milliontons) of declared import requirements. Rich ironores had to be used by pig-iron producing coun-

tries, in order to reduce their coke consumption.The Steel Committee accordingly recommended tothe countries concerned to replace rich ores by agreat use of lean ores. With regard to manganeseores, the Committee recommended that in 1949all ores suitable for producing ferro-manganeseshould be kept by priority for that use.

To discuss its future programme of work, theSteel Committee set up an ad hoc working party.On the basis of its report, the Committee recom-mended that the Economic Commission for Europeamend the Committee's terms of reference. It sug-gested that the Committee should, inter alia, pursuethe examination of the supply position with regardto the principal raw materials of the iron and steelindustry, collect and transmit information con-cerning steel production, including costs of pro-duction, and consumption trends; and considerways and means of increasing steel consumption,particularly in the under-developed countries.

g. TIMBER COMMITTEE

The Timber Committee (until the third ses-sion of the Economic Commission for Europe, asub-committee of the Industry and Materials Com-mittee) dealt with matters of common concern toFAO and ECE, and was serviced by a joint secretar-iat of the two organizations.

At its fourth session in March 1949, the first inthe period under review, the Committee ascertainedthat a temporary equilibrium between supply anddemand had been established in 1948, and thatthis balance was also likely to occur in 1949. Thissituation obviated the need to continue buyinglimits for timber imports which had been pre-viously established by voluntary agreement; how-ever, the decision was made to reconsider thequestion at the next session. It was confirmed,during the fifth session in September 1949, thatan approximate balance would result in 1949. Dueto the large surplus of timber caused by the forestfires in France, the estimate for 1950 indicatedthat there should be no danger of a timber short-age for that year. The Committee, however,stressed that the situation might change when theadditional timber supplies in France were absorbed.

The Timber Committee further considered theprogress of arrangements for increasing timberavailable for export by facilitating the purchaseof timber equipment from certain equipment-exporting countries, by means of a loan from theInternational Bank. During 1948, the timber-importing and timber-exporting countries reachedan agreement, in principle: (1) part of the equip-ment was to be obtained from the timber-import-


ing countries and paid for under the terms ofbilateral trade agreements; (2) the balance wasto be equipment manufactured in the UnitedStates, obtained through International Bank loans,which were to be repaid by the delivery of addi-tional amounts of timber to the importing coun-tries. These countries would deposit the sales priceto the credit of the Bank. Negotiations on thisbasis took place between representatives of thecountries concerned and the Bank. By the endof 1949, negotiations for loans to Finland andYugoslavia had been completed.

The Committee considered that application ofmodern methods could help European countriesto save substantial amounts of timber. A report,"Study on More Rational Utilization of Wood"(TIM/29), was presented to the Commission,which gave the results of inquiries carried out inFrance, the United Kingdom, Sweden and theNetherlands on the rational utilization of wood inbuilding. The report also included investigationscovering all other fields of wood production andutilization made in Austria, Italy, Hungary, Poland,Czechoslovakia, Switzerland and Yugoslavia. Itsconclusions summarized the measures, includingfinancial, which might be submitted to Govern-ments for consideration.

h. COMMITTEE ON AGRICULTURAL PROBLEMS

The Committee on Agricultural Problems, es-tablished by the Economic Commission for Europeat its fourth session, was empowered to initiatestudies and make recommendations on the bestpractical means of European co-operation to de-velop the production of agricultural commoditiesin Europe and to facilitate trade in these products.While providing a forum for discussion and theexchange of information on the agricultural aspectsof European reconstruction and development, theCommittee recognized the responsibility entrustedto the Food and Agriculture Organization of theUnited Nations in this regard. It also concerneditself with the problems of industrial requisites foragricultural production and the exchange of indus-trial goods against foodstuffs.

At its first session in October 1949, the Com-mittee adopted unanimously the report of itsprovisional Working Party on Programme andMethods of Work. The Working Party was estab-lished to make recommendations concerning thoseproblems of European agriculture calling for earlystudy, to define the nature of the studies involved,and to indicate the appropriate procedure for thestudies. It recommended that the Executive Secre-tary should present reports on specific problems:

livestock production and animal feedingstuffs,means of production, assistance to farmers of smalland medium sized holdings, quality standards forperishable foodstuffs and breadgrains. The studies,it was felt, would enable the Committee to arriveat concrete recommendations with regard to thesesubjects.

The Working Party on Quality Standards forPerishable Foodstuffs, set up by the Committee atits first session, met in Geneva from 14 to 16November 1949. A number of perishable productswere chosen for study, and Governments havinga major export or import interest in these productswere asked to designate rapporteurs and expertswho would be responsible for carrying out thestudies and preparing recommendations. Govern-ments were also requested to send to the secre-tariat, on each product or group of products beingstudied, information concerning their own country,this information in turn being made available tothe teams of experts.

i. AD HOC COMMITTEE ON INDUSTRIALDEVELOPMENT AND TRADE

The ad hoc Committee on Industrial Develop-ment and Trade, established at the Commission'sthird session, met from 27 September to 4 October1948, to examine functions which the Commis-sion might undertake to promote the industrialdevelopment of European countries and the ex-pansion of international trade between countriesof Europe, and also between those countries andcountries outside Europe.

Three solutions were envisaged: the first pos-sibility was the establishment of a committee todeal solely with trade problems, while problemsof industrial development were left to the existingsubsidiary organs of ECE (draft resolution for theestablishment of a Committee for the Develop-ment of Trade proposed jointly by the Netherlandsand Belgium delegations (IDT/15)). The secondwas the establishment of a single committee dealingwith both trade and industrial development andco-ordinating activities in both fields (Swedishproposal of draft terms of reference for a Com-mittee on Economic Relations (IDT/17)). Lastly,two separate bodies might be set up (the Polishproposals on the establishment of a Standing Com-mittee on Trade (IDT/12) and a Standing Com-mittee on Economic Development (IDT/13), andcertain USSR proposals (IDT/16)).

Agreement was reached, after much discussion,that only one Committee should be established.There remained, however, two alternate proposalsregarding the terms of reference of the Committee:


one, which was submitted by the USSR delegation(IDT/18/Add.l), provided for detailed terms ofreference and was subsequently rejected by theCommittee; the other, submitted jointly by theBelgian and Netherlands delegations and amendedby the delegations of France and Sweden, indi-cated only the main fields of activity (IDT/19 andRev. 1) and as amended, was subsequently adopted.Further amendments introduced during the plenarydiscussion were incorporated to take into considera-tion the views of the minority. Thus, the ad hocCommittee recommended to the Economic Com-mission for Europe that a Committee on theDevelopment of Trade be established to promotethe increase of trade, through the full utilizationof national resources and the more rapid develop-ment of the economies of the European countries,and set forth proposed terms of reference.

There were two further actions taken by thead hoc Committee. It adopted a Polish resolution,as amended by the delegation of Denmark(E/ECE/IDT/6), which invited the ExecutiveSecretary to prepare for the Commission a sum-mary of recommendations concerning the activ-ities of the Committee to be established. A fur-ther proposal by the USSR, that the ad hoc Com-mittee pronounce itself against the prohibitionsand limitations imposed on the trade of the westerncountries of Europe by the Marshall Plan, wasrejected (IDT/16/final paragraph).

After consultation with the Chairman and Vice-Chairman of the Commission, the Executive Sec-retary asked Governments if the work of therecommended committee might be started on aprovisional basis, before its terms of reference hadbeen approved by the Commission. The Govern-ments concerned having agreed to this procedure,the Committee on the Development of Trade metin February 1949, to consider its programme ofwork.

The general debate at the opening of the sessionshowed that there was agreement among partici-pating countries concerning the urgent need toexpand intra-European trade, but that there weredifferences in the emphasis given to the types ofaction to be undertaken by the Committee. Threeworking parties were set up to consider: theimprovement of trade and payments mechanisms;the expansion of the basis of European trade; andcertain selected questions of commercial policyrelating to international trade.

The recommendations of the working partieswere incorporated in resolutions, which were lateradopted by the Committee on the Developmenton Trade. The first recommended that EuropeanGovernments endeavour to develop their exchanges

within the existing framework of bilateral agree-ments, and in this connexion requested the Exec-utive Secretary to study the mechanism and patternof such agreements, with particular reference totheir duration and the possibilities of coveringbalances in the currencies of European countriesas well as in dollars and gold. A report wasrequested which would present solutions to theproblems of payments difficulties created both byseasonal fluctuations and by the financing of theperiod of production of capital goods. The Exec-utive Secretary was also to assess possibilities fortriangular agreements and multilateral compensa-tion and submit to Governments proposals regard-ing the possible functioning of a multilateral com-pensation system.

The second working party explored the possi-bilities of collecting information on the potential-ities of European trade, and requested the ExecutiveSecretary to carry out the preliminary work neces-sary to establish a list of commodities in shortsupply in Europe, together with the potentialitiesfor expanding the production of those products.

The resolution of the third working party con-cerned studies on the exchange of patents and"know-how", and the exchange of students andtrainees. A resolution submitted by the repre-sentative of Czechoslovakia, as amended by therepresentative of Poland, which concerned tradediscrimination and the export licensing system ofthe United States, was referred to the Committeeand rejected by 11 votes to 6.

At the second session of the Committee, in May1949, the Executive Secretary stated that theperiod between the two sessions of the Committeehad been too short to allow him to complete thestudies called for by the resolutions of the firstand third working parties. The Committee there-fore concerned itself with the problems of expand-ing the basis of European trade, especially theproblem of obtaining needed information. In thisconnexion, the Executive Secretary submitted areport entitled "A Preliminary Study of the Poten-tialities for the Expansion of European Trade"(E/ECE/TRADE/3). A draft resolution sub-mitted by the representative of the USSR, whichwould have invited the secretariat to prepare areport on the question of trade discriminationand on measures to eliminate it, was rejected by11 votes to 6.

The Commission, at its fourth session, after con-siderable debate and the appointment of an ad hocworking party to consider the question, approvedthe establishment of the Committee on the Devel-opment of Trade and the terms of reference sub-mitted to the Commission by the ad hoc Committee


on Industrial Development and Trade (E/ECE/-IDT/5).

3. Relations with the Allied ControlAuthorities in Germany

At its third session, the Commission, havingdiscussed the report of the Executive Secretary onrelations with the Allied Control Authorities inGermany, unanimously adopted a resolution in-structing the Executive Secretary to renew consul-tations with the Allied Control Council, with aview to the establishment of a main liaison office inBerlin and the termination of the Frankfurt officeas an independent unit. The Chairman of theAllied Control Council was informed of this reso-lution on 8 May 1948.

At its fourth session, the Commission discusseda report by the Executive Secretary on the back-ground and existing situation regarding relationswith the Allied Control Council. The represent-atives of the USSR, Czechoslovakia and Polandagreed that the question of establishing the Com-mission's relations with Germany should be decidedin respect of the whole of Germany, regarded asa single economic unit. In their opinion, theliaison office in Frankfurt had been set up unlaw-fully, and should therefore be liquidated as soonas possible. The representative of the UnitedKingdom placed on record his Government's sup-port of the continuation of the present arrangementpending the completion of new arrangements inline with the resolution of the third session.

4. Surveys of the European EconomicSituation

The Economic Survey of Europe in 1948 waspublished in May 1949. In addition to a reviewof developments in production, monetary condi-tions, trade and the balance of payments during1948, it provided the first comprehensive analysisof investment activity in Europe. It also devotedattention to the broader problems facing Europe,after the more urgent relief and reconstructionproblems had receded into the background. Partic-ular emphasis was given to the disintegrating ten-dencies in the European economy, to the natureof the overseas payments problems and the impor-tance of the United States in this regard, to theinternational price and exchange-rate disparitieswhich had developed, and to the need for stillgreater investment activity in Europe as a meansof increasing productivity and improving livingstandards.

In December 1949, a report on the EuropeanSteel Trends in the Setting of the World Marketwas issued. The report was prepared to throwlight on the problems facing the European ironand steel industry and the measures which mightbe taken to meet them.

The report noted that the over-all problemconcerned the gradually increasing surplus ofcrude steel in Europe, for which a market wouldhave to be found. To achieve an efficient, self-supporting European economy, which would per-mit a high level of steel consumption and enableEurope to export its surplus, however, the pricesof raw materials in Europe would have to be re-duced and production efficiency improved by suit-able modernization of plant and equipment. Withregard to present European plans, the report con-cluded that European countries planned a dis-proportionate volume of investment in steelcapacity; and suggested that the development ofsteel consumption be given a relatively higherpriority. In view of the conclusion that the bi-lateral structure of trade in raw materials artificiallyincreased steel costs, international action to reducethe cost of steel-making raw materials was sug-gested. The reduction of barriers to intra-Europeantrade in steel was proposed. Regular interchangeof technical information, stimulation of technicalresearch and productivity studies were recom-mended. Other lines of international co-operationsuggested were the continuing examination ofsteel plans with a view to co-ordination of invest-ment, the regular study of the steel market, andthe exchange of information on consumptionpossibilities.

In July 1949, the first number of the EconomicBulletin for Europe was issued—a quarterly pub-lication undertaken to provide a review of Euro-pean economic developments at regular intervalsbetween the Annual Surveys, as well as specialarticles and a supplement of basic European eco-nomic statistics. The issue for the second quarterappeared in October, and that for the thirdquarter at the end of the year.

5. Discussion by the Council of theCommission's Reports

a. INTERIM REPORT

At its eighth session, the Economic and SocialCouncil was presented by the Executive Secretaryof the Economic Commission for Europe with aninterim report covering the Commission's activitiessince the adjournment of the third session on8 May 1948 until 1 November 1948 (E/1074).


The Council had before it for adoption a draftresolution recommended by its Economic Com-mittee (E/1245), which took note of the interimreport of the Economic Commission for Europe.The Council discussed the interim report at its270th and 271st plenary meetings on 10 and 11March 1949.

The debate centred on a Polish draft resolution(E/1257) concerning economic discrimination inintra-European trade, including such measures assanctions against other countries or the influencingof the direction of internal or foreign policy byrestrictive trade and credit policies. It called uponthe member States of the Economic Commissionfor Europe to study measures which would resultin an expansion of the trade relations existingbetween them. It requested ECE to continue tostudy, consult and submit recommendations onmeasures leading towards the expansion of tradebetween European countries, as well as betweenEuropean countries, on the one hand, and countriesoutside Europe, on the other. ECE was also tostudy the impact of the existing restrictive meas-ures and to report its conclusions to the earliestpossible session of the Council.

In this connexion, the representative of Polandcited the terms of reference of the Committee onthe Development of Trade which, he felt, shoulddeal constructively with the development of intra-European trade and the industrial development ofeconomically backward countries of Europe. TheCommittee was encountering serious obstacles dueto the discriminatory policies of the United States,the dependency of European currencies on theUnited States dollar, and reliance on multilateraltrade agreements. The USSR, in supporting thePolish draft resolution, considered that althoughthe matter had been discussed previously, thedraft resolution was in keeping with the timelinessof the problem of economic discrimination andthe importance of economic co-operation amongUnited Nations Members.

The proposal, as such, was opposed by otherdelegations, including those of France, the UnitedKingdom and the United States. They observedthat the draft resolution was almost identical withone which the Polish delegation had introduced atthe first part of the third regular session of theGeneral Assembly. At that time, the question hadbeen extensively discussed and the resolution hadbeen rejected.65 They briefly noted certain factsunderlying their opinion that the European Recov-ery Programme ("Marshall Plan") had not re-stricted trade exchanges in Europe, had notprevented the conclusion of bilateral trade agree-ments, nor prevented the Economic Commission

for Europe from carrying out useful work inindustrial development.

The Council rejected the Polish draft resolu-tion by 13 votes to 3, with 2 abstentions. Itunanimously adopted a resolution (186(VIII))taking note of the Interim Report.

b. ANNUAL REPORT

The regular annual report (E/1328), coveringthe activities of the Commission and its subsidiarybodies since the adjournment of the third sessionin May 1948 up to the end of the fourth ses-sion in May 1949, was submitted to the ninthsession of the Council. The report was discussed atthe 289th to 292nd plenary meetings on 9, 11 and12 July, respectively.

The work and achievements of the Commissionand of its subsidiary bodies were appraised in thegeneral debate. Most of the statements focussedattention on the economic situation in Europe, asreviewed by the Economic Survey of Europe in1948, prepared by the Commission's secretariat.

The Council almost unanimously praised theSurvey for its clarification of the major trends ofthe European economy. The representative ofFrance, for example, commented on the valuablecontribution which the Survey had made becauseof its penetrating analysis of factors militatingagainst equilibrium in Europe: the slow accumu-lation of capital; the poor rate of investment; theurge for self-sufficiency; the lack of specialization;the want of co-ordination between the variousdevelopment programmes; and inadequate produc-tivity.

It became clear that, in general, the points ofview expressed fell into two categories: those dele-gations which believed that the effects of UnitedStates aid to European countries was beneficial,and those which did not. The Survey had stressedthat the rate of capital formation was appreciablyhigher in Western Europe than in Eastern Europe.Those delegations in favour of the EuropeanRecovery Programme felt that this was largely dueto the fact that the Western European countrieshad accepted Marshall aid. Deficits in balance ofpayments had been largely covered in these coun-tries by the Marshall Plan, and production hadbeen raised to pre-war levels or even higher. Therewere indeed problems to be faced; one of thesewas unemployment; a second was the need offinding a remedy for the accumulation of surplusesin the United States; while a third was the expan-sion of intra-European trade.

Other delegations, however, were of the opinion65 See pp. 482-85.


that the Survey had showed the tendency towardsinequalities in the development of the countriesof Eastern and Western Europe, and of Europe asa whole as compared with the United States. Al-though it showed the impressive progress made ineconomic reconstruction, it also pointed out thatin 1948 this reconstruction was handicapped bythe division in Europe. These delegations feltthat the economic progress in the East was inmarked contrast to the conditions prevailing inWestern Europe with its unemployment and thedeficit in the balance of payments which, in turn,was increasing the pressure for devaluation. Theyconsidered that the drop in intra-European tradefrom pre-war figures was due to embargos anda discriminatory economic policy. The EasternEuropean countries had tried to compensate forthis drop by an increased trade turnover amongstthemselves, facilitated by treaties.

In this connexion, the delegations were in agree-ment on the importance of the development ofEast-West trade in Europe. Differences of opinionarose, however, regarding the methods by whichthe Committee on the Development of Trade couldstimulate the resumption of such trade. The repre-sentatives of the USSR and Poland, in particular,declared that the Committee's terms of referenceshould be amended, so that it might deal adequatelywith the problem. They felt that the Committeehad not taken steps towards abolishing trade dis-crimination against Eastern Europe. It should,therefore, concentrate on the problem of removingevery obstacle impeding full development of intra-European trade, prepare long-term plans for itsdevelopment, and finally, examine the question ofcommercial relations between European and non-European countries.

Another question raised during the discussionconcerned the future work of the Economic Com-mission for Europe. The organizational structureof the Commission was discussed, and its past andfuture functions analysed. In particular, the debatecentred on resolution 3 of the fourth session of theCommission, which instructed the technical com-mittees to consider their future programmes beyond1950, terminating activities which were no longeruseful. The resolution was, in turn, based onresolution 36 (IV) of the Council, which providedthat by 1951, at the latest, the Council should makea special review of the work of ECE to determinewhether it should be terminated or continued,and if continued, what modifications, if any, shouldbe made in its terms of reference.

Differences of opinion revolved around whetherthe time had come to curtail the work of the Com-mission.

The representatives of the United Kingdom,Turkey and Brazil considered that the changingconditions of Europe, which had been stressed byrepresentatives at ECE's fourth session, warrantedthe contracting and reorganizing of ECE's activ-ities. Substantial economies could well be effectedin ECE without impairing its efficiency; amongother items, expenditures for publicity should becut. This implied no criticism of the Commission,but in view of the good work done, many of itsfunctions had been largely fulfilled.

On the other hand, the representatives ofFrance, India, Poland, the USSR and the UnitedStates, in supporting resolution 3, expressed theopinion that although the question of budgetaryeconomies was important, that of the work to bedone by ECE was no less so. Some reorganizationcould be undertaken to use available resourcesto the best possible effect, but changes shouldnot be made in the spirit of restriction. Themoment had not yet come, they felt, for consider-ing the curtailment of ECE's activities. It wouldbe premature to take any decisions before thework of review had been completed and agreementreached on the essential tasks of the Commission.

An exchange of views took place concerningthe relationship of ECE to the other regionalcommissions, and stress was laid on the growingimportance of inter-regional co-operation. Therewas some question as to whether regional com-missions should concern themselves not only withregional problems as such, but also with the inter-national aspects of those problems. Although somespeakers, in particular the representative of India,were in favour of the broader approach, others,such as the representative of the United Kingdom,felt that the activities of regional commissionsshould be limited to those subjects on which inter-national action could be taken at regional level,without competing with functional commissionsand specialized agencies dealing with subjectswhich could only be treated on a world-wide basis.In addition, the question of the Council's respon-sibilities in its general control and supervision, aswell as co-ordination of the regional commissions,was considered.

There was also a feeling on the part of somedelegations that the annual report put at a disad-vantage the countries not directly concerned withthe Economic Commission for Europe. The report,they considered, recorded only the administrativearrangements made and the machinery at work.It did not, however, reveal how far the decisionstaken were put into practice, or the extent towhich Governments were helped to implement


them. It was thus difficult to appraise the work ofECE from the report or to assess the budgetaryimplications involved.

At the termination of the general discussion,resolution 232 (IX) was unanimously adopted, inwhich the Council took note of the regular annualreport submitted by the Commission and of theviews expressed during the discussions at the fourthsession of the Commission. It also approved theestablishment of the Committee on the Develop-ment of Trade and of the Committee on Agricul-

tural Problems within the framework of ECE.The suggestion of the Commission concerningthe submission of interim reports to the Councilwas also considered, and it was decided that forthe present the Council did not require the Eco-nomic Commission for Europe to submit interimreports to each session in accordance with point 6of the terms of reference. It was left to the discre-tion of the Commission to submit such reportsadditional to the annual report as it considereddesirable.

M. ECONOMIC COMMISSION FOR ASIA ANDTHE FAR EAST (ECAFE)

During the period under review, the EconomicCommission for Asia and the Far East (ECAFE)held two sessions: its fourth at Lapstone, Australia,from 29 November to 11 December 1948, and itsfifth at Singapore, from 20 to 29 October 1949.

1. Membership

At its seventh session, the Economic and SocialCouncil had decided (144(VII)B) that the Com-mission had authority to deal with applications formembership from areas within its geographicalscope. It had also (144(VII)A) amended theCommission's terms of reference to include Nepalwithin its geographical scope. The Commission,at its fourth session, unanimously agreed thatNepal be admitted as an associate member.

With respect to the admission of Indonesiaand/or the Republic of Indonesia, the Commissiondecided, after prolonged discussion, to admit theRepublic of Indonesia and the rest of Indonesiaas associate members. The representative of theUSSR objected to the admission of Indonesia("Netherlands Indies"). The representative of theNetherlands maintained that the motion of hisdelegation to admit the whole of Indonesia shouldbe voted upon, since there was no application forassociate membership from the "rest of Indo-nesia". After the Commission's decision, theNetherlands delegation withdrew from the session.

The question of the admission of Viet-Namwas considered by the Commission at its fourthsession, but the Chairman ruled that no validapplication for associate membership from theDemocratic Republic of Viet-Nam had beenreceived.

At its fifth session, the Commission had beforeit: a request for admission from the Democratic

Republic of Viet-Nam, and an application pre-sented by France for the admission of the State ofViet-Nam. Both applications were consideredsimultaneously.

The representatives of France, Australia, Cam-bodia and the United Kingdom supported thecandiditure of the Government of the State ofViet-Nam as being the duly-constituted and legalGovernment of the territory. The representativesof France and the United Kingdom pointed outthat ECAFE's terms of reference stated that appli-cations could only be considered when they weremade, on behalf of a territory, by the Governmentresponsible for its international relations, which,they felt, applied in the case of the application ofthe State of Viet-Nam. An application could alsobe considered when made by a territory not aUnited Nations Member, but responsible for itsown international relations. These conditions werenot met in the case of the "so-called" DemocraticRepublic of Viet-Nam, and they accordingly re-quested the Commission to declare the applicationnot admissible.

The representatives of the USSR and the Repub-lic of Indonesia supported the application of theDemocratic Republic of Viet-Nam as the onlylegal Government of the territory. The USSRrepresentative observed that the United King-dom and Australian representatives, among others,had stressed the question of responsibility for inter-national relations. He did not feel it correct thatthe application of the Democratic Republic of Viet-Nam could not be accepted because it "had not atpresent its own international relations". Althoughsome representatives had expressed the view thatthe general criterion for deciding the independenceof a country was that of general recognition, hebelieved that other considerations should be takeninto account, such as the territory and population


a Government controlled, its means, and its con-trol of the armed forces.

The representative of India announced his inten-tion to support both candidatures. The applica-tions of such Governments as actually controlledthe economic life of the region, he considered,should be supported.

By 8 votes to 1, with 3 abstentions, the Commis-sion admitted the State of Viet-Nam as an associatemember of ECAFE. The application of the Demo-cratic Republic of Viet-Nam was rejected by 2votes in favour to 7 against, with 3 abstentions.

With respect to the admission of Korea, theEconomic and Social Council, at its eighth session,adopted resolution 187(VIII)B, amending theterms of reference of ECAFE to permit it to con-sider the application of Korea for associate mem-bership.66 By October 1949, applications had beenreceived from both the Republic of Korea andthe People's Democratic Republic of Korea.

Consideration was given to the applications atthe fifth session of the Commission. In proposingthe admission of the Republic of Korea, the repre-sentative of the United States cited the GeneralAssembly resolution of 12 December 1948 (195-(III)), which declared that Government as lawfuland the only such Government in Korea. Headvocated that the Commission take no actionon any application for membership from the "so-called" People's Democratic Republic of Korea,upon which the General Assembly had conferredno status. Similar views were expressed by therepresentatives of the United Kingdom and NewZealand.

The representative of the USSR opposed theadmission of the Government of the Republic ofKorea, on the grounds that the authorities werebeing supported by a foreign Power and did notrepresent the Korean people. He proposed theacceptance of the application of the People's Dem-ocratic Republic of Korea, that Government havingbeen duly elected and established with the fullparticipation of all the people of North Korea.

By vote of 11 to 1, the Republic of Korea wasadmitted as an associate member of ECAFE. Theapplication of the People's Democratic Republicof Korea was rejected by 2 votes in favour to 9against.

2. Organization

At its fourth session, the Commission conveneda Committee of the Whole to deal with organi-zational problems. This Committee, which metfrom 28 March to 5 April 1949, after discussing

the problem of setting up appropriate machineryin the field of industrial development and trade,decided to establish the following subsidiary bodiesof the Commission: Committee on Industry andTrade, Sub-Committee on Iron and Steel, and Sub-Committee on Travel Facilities. This decisionwas subsequently approved by the Economic andSocial Council at its ninth session (233(IX)A).

The Commission carried out much of its workthrough working parties, such as the Joint ECAFE-UNESCO Working Party, to increase the avail-ability of educational, scientific and culturalmaterials in the ECAFE region. A Bureau of FloodControl, approved at the seventh session of theEconomic and Social Council (resolution 144-(VII)D), began its task of dealing with questionsof flood control.

3. Activities of the Commission

Among the problems considered by the Commis-sion during the period under review, were thefollowing:

a. PROBLEMS OF INDUSTRY AND TRADE(1) Industrial Development

During its second session, ECAFE establisheda Working Party on Industrial Development. TheWorking Party made recommendations concerningelectric power, coal, petroleum, transport andtransport equipment, fertilizers and agriculturalrequisites, basic metals and ores, textiles andheavy engineering industries. The Commission, atits fourth session, generally endorsed the WorkingParty's recommendations, and requested the secre-tariat of ECAFE to bring them to the notice ofthe countries concerned. It also informed theGovernments of the more advanced industrial coun-tries of the continued need of the countries of theregion for assistance in obtaining imports of ironand steel and capital equipment.

The Commission resolved that a Committee ofthe Whole examine further the report of theWorking Party, and set up appropriate machineryto implement any concrete proposals emergingfrom its discussions.

The Committee of the Whole, meeting inMarch-April 1949, established a Committee onIndustry and Trade, to consider and recommendconcrete action in specific branches of industryand to make investigations and initiate studies.The Committee's decisions under its terms of refer-ence, it was decided, could be implemented with-

66 See pp. 516-17.


out awaiting the approval of ECAFE, unless thatapproval could be obtained within three weeksafter the close of the meeting of the Committee.The USSR representative placed on record hisobjection to this provision, holding, among otherthings, that the Committee of the Whole did nothave the right to create a new subsidiary organwith greater functions than the terms of referenceof ECAFE.

Under the Committee on Industry and Trade,an Iron and Steel Sub-Committee was established,consisting of experts nominated by Governmentsand working in association with the secretariat ofECAFE. The task assigned to this Sub-Committeewas:

(1) To study and evaluate the adequacy of theexisting surveys on deposits of iron and other oresused in the manufacture of steel, and to ascertainthe scope for additional surveys as well as theeconomic and commercial possibilities of exploita-tion;

(2) To ascertain the progress of iron and steelexpansion projects; and, by receiving reports fromGovernments of causes of delay in their executionof specific projects, to aid in the removal of thesecauses by recommending international action;

(3) To compile existing data with regard tothe utilization, in the manufacture of iron andsteel, of fuels other than coking coal; and

(4) To deal with problems of scrap, particularlythe possibilities of using larger quantities of scrapin steel production.

The secretariat of ECAFE was requested toundertake a study on the adequacy of existinggeological surveys of coal and on the extent of coalresources and the possibility of increasing its pro-duction. It was also asked to study the possibilitiesand methods of producing power alcohol (to beused as a substitute for petroleum), existing enter-prises in the region for its production, currentpractice in its manufacture and use, and othersubstitutes for petroleum. A study of the economicand social aspects of the production and use ofchemical fertilizers was to be undertaken by thesecretariat in consultation with the Food andAgriculture Organization.

With regard to industrial development, theCommittee on Industry and Trade, at its firstmeeting in October 1949, among other things,outlined a work programme in the following fields:finance, procurement of capital goods, and co-ordination of projects. It also decided that a surveyshould be made of the geological and industrialresearch laboratories in the ECAFE region, so asto ascertain whether or not their facilities wouldbe at the disposal of ECAFE countries. In the first

instance, those dealing with coal and mineral re-search and with iron and steel manufacturing wereto be surveyed. In addition, lists of the laboratories,their publications and their general range of studies,and information on their willingness to acceptrequests for assistance were to be circulated, whileECAFE countries were invited to request, throughthe secretariat, the services of those laboratorieswilling to participate in the programme.

The Commission, at its fifth session in October1949, approved generally the Committee's con-clusions and recommendations on industrial de-velopment. It also decided that a study be madeof the loan requirements of the International Bankfor Reconstruction and Development with regardto certain categories of development projects, anddecided on further details concerning the studies oncoal and iron ore, chemical fertilizers and petrolsubstitutes.

(2 ) Trade and Finance

In accordance with decisions taken at ECAFE'sthird session, the secretariat set up a Trade Pro-motion Section and organized a working party toinitiate inquiries into the financial arrangementswhich might be made to facilitate trade in theECAFE region. The working party, consistingof eight experts from member countries, two offi-cials from the International Monetary Fund, andone from the International Bank for Reconstructionand Development, met in August and September1948.

After considering the report of the workingparty, the Commission at its fourth session ap-proved a series of recommendations to promotetrade. These included the following:

(1) That member Governments of ECAFE seekthe advice of the Fund regarding anti-inflationarymeasures, the fixing and maintenance of exchangerates, and measures for mobilizing gold andforeign exchange;

(2) That special trade and clearing arrange-ments be entered into as short-term arrangementsnecessitated by the current disequilibrium in in-ternational trade and balance of payments;

(3) That the Governments in the ECAFE re-gion eliminate obstacles in the way of tourism andpurchases by tourists;

(4) That they improve foreign exchange facil-ities granted to students and traders travellingabroad and ease their financial and customs regu-lations;

(5) That those Governments wishing to en-courage the entry of foreign capital into their terri-tories make available to the secretariat full infor-mation regarding the laws and regulations govern-


ing the treatment of foreign investment, thisinformation to be included in an annual economicsurvey published by the secretariat; and

(6) That Governments of the ECAFE regiontake steps to increase exports, even at the costof a temporary reduction in home consumption,while those Governments in a position to increasetheir imports from the ECAFE region make everyeffort to do so.

ECAFE also requested the International Mone-tary Fund to study the balance of payments andthe trade movements of the region with a view todetermining the practicability of establishing amultilateral clearing system. Further, countriesof the region needing outside financial aid wererecommended to formulate specific projects ofeconomic development, with a view to using thefacilities available from private investors, theInternational Bank and other credit agencies.

At its fifth session, the Commission endorsedthe conclusions of the Committee on Industry andTrade in respect of trade. These emphasized,among other things, the importance of promotingintra-regional trade and recommended that, wherepracticable, countries contemplating changes inpolicy governing trade and exchange make avail-able advance information for circulation throughthe secretariat's Trade Promotion Section. Theestablishment of permanent trade promotion agen-cies was urged.

ECAFE, at its third session, had adopted a reso-lution on the contribution of Japanese economyto the reconstruction and development of theECAFE region. The main section of the resolutionrecommended (1) that Governments in theECAFE region give immediate consideration to thepossibility of entering into working arrangementswith Japan for the supply of capital goods, mate-rials and consumer goods needed by them, in ex-change for raw materials and other goods, and(2 ) that "such arrangements should be based onthe principle that within the limits set by theFar Eastern Commission and the Peace Settlement,when concluded, Japan's trade and industrial plansshould be adjusted to the needs and requirementsof the economic development of Member andAssociate Member countries."

The question of the competence of the Commis-sion in this connexion had been debated at theseventh session of the Council, where it was gen-erally agreed that the competency of the Far East-ern Commission, a body not connected with theUnited Nations, should not be placed in jeopardy.At the Commission's fourth session, after muchdiscussion, it was decided that, while trade withJapan was largely a matter for negotiations by the

Governments concerned, there was scope forECAFE to collect and analyse data on import needsand export availabilities, and to draw attention tonew trade possibilities. Accordingly, the Commis-sion took note of the special trade and paymentsarrangements between certain countries in theregion and Japan. ECAFE countries were recom-mended to continue to explore the possibilities ofmaximizing their trade with Japan within thespecial trade and payments arrangements alreadyconcluded, and also the possibilities of enteringinto new arrangements, so that the Japanesecapacity might be used more fully for the economicdevelopment of the ECAFE countries. The prin-ciples laid down in the resolution adopted at theCommission's third session were re-affirmed.

The Committee of the Whole, in March-April1949, further considered the question, and arrangedfor the collection of data on commodities availablefrom time to time for export from Japan to coun-tries of the ECAFE region and vice versa, and onmutual import needs.

At its fifth session, the Commission, noting thatthe trade between Japan and ECAFE countrieswas at present complementary and that expansionwould be beneficial, recommended the intensifica-tion of studies of trade with Japan and in theregion generally, with special attention to be paidto identifying factors impeding trade and causesof changes in the volume and patterns of trade.The representative of the USSR felt that the word"complementary" did not take into account thedirection in which trade with Japan should bedeveloped. He suggested specifying that the trade"should assist the economic rehabilitation of thecountries of the region." This was subsequentlyrejected.

The Committee of the Whole asked the secre-tariat to undertake a study on the problem ofthe dollar shortage as it affected the ECAFEcountries, in consultation with the InternationalBank for Reconstruction and Development, theInternational Monetary Fund, and any expert sub-committees set up to deal with specific fields ofindustry.

With the object of stimulating tourist traffic,thus making available additional dollar and otherforeign exchange, the Committee of the Whole, in1948, established an ad hoc Sub-Committee onTravel, as a subsidiary organ of the Committeeon Industry and Trade, to deal with the improve-ment of travel facilities. The ad hoc Sub-Com-mittee was to be aided by a technical working partyof experts, selected from travel agencies operatingin the region. The USSR delegation opposed thisdecision on the grounds that several parts of the


resolution led directly to interference in the in-ternal affairs of ECAFE countries.

The Sub-Committee met from 12 to 17 October1949, and submitted a series of recommendationsto ECAFE's fifth session for encouraging tourismand for establishing national organizations topromote tourist traffic. These were approved, withminor amendments. They included recommenda-tions for removing barriers hindering travel, suchas simplification of the regulations concerningpassports, visas, customs formalities, allocationof foreign exchange and health certificates.

b. PROBLEMS OF FOOD AND AGRICULTURE

The Commission, at its fourth session, in Decem-ber 1948, discussed the Executive Secretary'sreport on continued co-operation with FAO, reportsof the FAO-ECAFE Joint Working Party onAgricultural Requisites, established by the Com-mission in June 1948, and a report, Food andAgricultural Conditions in Asia and the Far East,1948, transmitted by FAO.

Regarding the recommendations of the FAO-ECAFE Joint Working Party, the Commissiondecided that they should be brought to the atten-tion of the Governments concerned, and that theWorking Party on Industrial Development, or anybody which might take over its functions, shouldgive special attention to the recommendations ofthe Joint Working Party concerning the increasein production and supply of agricultural requisiteswithin the region. It recommended to FAO thatit bring the needs of the region to the attention ofcountries producing agricultural requisites andadvise appropriate international organizations witha view to increasing the supply of such requisitesto the ECAFE countries.

The Commission also requested the ExecutiveSecretary and FAO to urge countries in the regionto undertake studies dealing with related socialand economic conditions and to report the resultsto ECAFE and to FAO as soon as possible. Itasked FAO to give assistance to countries whichrequested it in planning these studies.

In addition, the Commission adopted a resolu-tion recognizing FAO's primary responsibility forall questions concerning food and agriculture, andrecommended that ECAFE continue to devoteclose attention to the economic aspects of thesequestions. It was agreed that it was not thennecessary to develop a formal agreement betweenECAFE and FAO; co-operation would thus con-tinue at the secretariat level.

In this connexion, the representative of theUSSR stated, for the record, that his delegation

considered the Commission's recognition of FAO'sprimary responsibility on food and agriculturalquestions as contrary to the functions given toECAFE by the Economic and Social Council.

ECAFE, at its fifth session, again approved themeans of co-operation between the Commissionand FAO. It noted the Executive Secretary'sreport on the subject, as well as the report on foodand agricultural conditions in the Far East, andasked for continued and fuller co-operation alongthe same lines. In particular, it recommended thatpriority be given to the study of the economic andsocial aspects of the production and utilization offertilizers. Special importance was also to beattached to the problem of investment for agri-cultural development and the problem of financ-ing imports of farm machinery and requisites.

c. PROBLEMS OF TECHNICAL TRAINING ANDEXPERT ASSISTANCE

At its fourth session, the Committee examineda progress report by the Executive Secretary ontechnical training and expert assistance, and areport on technical training prepared on behalf ofthe Commission by an expert of ILO. It adopted aresolution requesting the Executive Secretary ofECAFE to consult with the Director-General ofFAO for the purpose of establishing the closestpossible working relationship between ILO andECAFE. In this connexion, the Commission tooknote of the programme adopted by the GoverningBody of ILO at its 107th session. While affirmingthat it had a continuing interest in the question, theCommission recognized that the provision of tech-nical training facilities was within the competenceof ILO. It requested that ILO make further reportsto ECAFE on progress made in this field, and itasked the Executive Secretary to undertake a spe-cial study on those fields of economic developmentwhich might suffer from the lack of trained per-sonnel.

With regard to technical assistance, the Commis-sion, at the same session, noting that the GeneralAssembly, in resolution 200(III), had decidedto make financial provision for technical assistanceto under-developed countries, requested the Secre-tary-General to take full account of the needs ofunder-developed countries in the ECAFE region.

At its fifth session, the Commission urged itsmembers to make full use of the technical assist-ance programme under the General Assembly'sresolution 200(III) and the facilities to be madeavailable under the expanded programme of tech-nical assistance envisaged at the ninth session ofthe Economic and Social Council. In order that


the fullest use could be made of the facilities ofthe ECAFE secretariat in this respect, the Councilwas requested to consider in what ways ECAFEcould participate in specific aspects of the pro-gramme. The Commission also recommended theextension of the technical assistance programmeunder General Assembly resolution 200(III) tocertain associate members of ECAFE, which werenations responsible for their own internationalrelations, but not Members of the United Nations.

d. PROBLEMS OF INLAND TRANSPORT

The Economic and Social Council, at its seventhsession in August 1948, endorsed (resolution147(VII)C) a recommendation of the Transportand Communications Commission to the effectthat ECAFE sponsor an early meeting of inlandtransport experts of its members. The recommen-dations on the subject of transport and transportequipment, contained in the report of the WorkingParty on Industrial Development, were referredto this meeting.

The Conference of Inland Transport Expertsmet from 5 to 10 October 1949, and studiedquestions concerning the rehabilitation and co-ordinated development of transport in the region.It recommended that the Executive Secretary collectexisting transport statistics and analyse them witha view to indicating the minimum data requiredto be maintained on a uniform basis. The Con-ference outlined an intensive programme withregard to railways, roads and inland waterways.

The Commission, at its fifth session, approved ingeneral the conclusions of the Conference. Itproposed the convening of an ad hoc Committeeof Experts on Inland Transport, which wouldreview the results of studies undertaken in themeantime and recommend further intra-regionalmeasures of co-operation.

e. PROBLEMS OF FLOOD CONTROL

At its seventh session, the Economic and SocialCouncil approved the recommendation of ECAFEthat a Bureau of Flood Control be established inthe region. However, it recommended that theCommission report to the eighth session of theCouncil the results of its fuller consideration ofplans and activities for dealing with problems offlood control in its geographical area, as wellas recommendations regarding organizationalproblems connected with the formation of sucha Bureau (144(VII)D).

The Executive Secretary submitted a reporton the subject to the Commission's fourth ses-

sion. The Commission decided that the Bureauof Flood Control would form part of ECAFE'ssecretariat in all administrative and financial mat-ters, but that the Chief of the Bureau would enjoythe necessary autonomy in all technical matters,subject to the decisions of the Commission.

As regards the terms of reference of the Bureau,the Commission reaffirmed those decided on atits third session which, inter alia, provided that theBureau (1) could enter into relations, throughmember Governments, with national and regionalorganizations responsible for matters relating toflood control and allied problems within theECAFE region and, where necessary, within re-gions outside that area; (2) maintain constantcontact with FAO and other specialized agenciesin this connexion; (3) promote the exchange ofinformation; (4) advise and assist Governmentsrequesting help in the establishment or improve-ment of such national organizations; (5) depute,upon the request of member Governments, expertsto the national organizations; and (6) define gen-eral principles, on the basis of which it wouldlater suggest joint programmes of studies andexperiments on problems of flood control. During1949, however, highest priority was to be givento a thorough investigation and assessment of theneeds of the parts of the ECAFE regions whichwere the principal sufferers from uncontrolledriver floods.

At its fifth session, the Commission approvedthe programme of work for 1950 outlined in thereport of the Bureau. This included surveys andfield investigations, a joint programme of experi-ment and study on the silt problem, the provisionof assistance to Governments, such as Ceylon,which requested aid in the establishment of aRiver Authority, and the exchange of information.The publication of a yearbook on Flood Control,and the regular issue of a Flood Control Journalwere also approved. In addition, the Commissionreaffirmed its previous decisions regarding theaims and functions of the Bureau.

4. Economic Survey of Asia and theFar East, 1948

Pursuant to the request of the Commission thatthe secretariat publish a comprehensive annualsurvey of economic conditions in the region, theEconomic Survey of Asia and the Far East, 1948was issued in July 1949. This survey covereddevelopments during 1948 in the countries of theregion with respect to agricultural and industrialproduction and transport, monetary and fiscal


questions, inflation and price movements, and inter-national trade and balance of payments.

It concluded that, while the year 1948 had,in general, been a year of many improvements inthe region, the tardy and uneven progress hadnot been substantial or satisfactory, and pre-warlevels of production were still far from beingattained. Instead of the pre-war favourable tradebalances vis-a-vis both the United States and therest of the world, serious deficits remained. More-over, other factors adversely affected the region'strading position, notably the relatively low priceof rubber and the increased competition fromsynthetic rubber, the declining demand for naturalsilk, and the decline in metal exports. The posi-tion of the ECAFE region in respect of many ofthe principal commodities in international trade(in particular, cereals, sugar, fats and oils, cotton,silk, jute and hard fibres) had deteriorated con-siderably. Inflationary pressures had increased; thefood position had changed so that the region frombeing a net exporter of rice, the principle com-modity, had become a net importer of rice.

Accordingly, the report declared, the devasta-tion and economic consequences of the war, civilstrife and other disturbances had left the region ina condition little short of collapse. It called formore sustained and organized efforts on the partof Governments and peoples to maintain andimprove the levels of living and consumption.

5. Discussions by the Council of theCommission's Reports

a. INTERIM REPORT

The Interim Report (E/1088), covering thefourth session of the Commission from 29 Novem-ber to 11 December 1948, was discussed by theEconomic and Social Council at its eighth session,at the 45th and 46th meetings of the EconomicCommittee on 8 and 9 March 1949, and at the269th to 271st plenary meetings of the Councilon 10 and 11 March 1949.

The majority of the delegations expressed satis-faction with the achievements of the Commissionas presented in the report. The Commission'saction with regard to the creation of the Bureau ofFlood Control was generally approved. Theopinion was expressed that close co-operationbetween ECAFE and the specialized agencies, asenvisaged in the report, was highly desirable.

The representative of the USSR, however, didnot feel that the Commission had fulfilled thetask entrusted to it, but had concerned itself with

factual details. In giving his views on the directionthe Commission should have taken, he stated thathe was concerned over two serious errors made bythe Commission: (1) the decisions taken by theCommission on the trade and economy of Japan,he felt, did not fall within its competence; and(2) the Commission had entrusted to FAO thestudy and preparation of a recommendation onagricultural development; he considered that spe-cialized agencies could be invited to take partin the work of ECAFE in a consultative capacityonly.

Differences of opinion were expressed in theCouncil on the financial implications of the resolu-tions adopted by the Commission. The Council,at its seventh session (175(VII)), had decidedthat funds could be allocated to a particular projectin the case of exceptional urgency, so that workcould be started before the next regular session ofthe General Assembly.

The decisions of the Commission involving addi-tional expenditures were those concerning tech-nical training (resolution 12), technical assistancefor economic development (resolution 13), andthe proposal for a 1948 survey (resolution 15).In accordance with the Council's rules of procedure,the Secretary-General submitted a financial esti-mate (E/1088/Add.l) which assessed the addi-tional cost at $32,000. An amendment to theresolution proposed by ECAFE and unanimouslyadopted by the Council's Economic Committee,was, accordingly, presented to the Council byAustralia (E/1254), to provide for the allocationof funds for these purposes, should the 1949 budgetprove insufficient.

The representatives of Denmark, France, theUnited Kingdom and the United States were notconvinced that a case of urgency was present inrespect of the proposals, with the possible excep-tion of that on technical training. They ques-tioned the advisability of singling out these proj-ects which could well, they felt, be started withinthe present budget and, if necessary, additionalfunds could be voted at the Council's ninth ses-sion. The representative of the USSR consideredthe matter to require exhaustive study before anydecision was taken. The representatives of Chinaand India, however, supported the additional allo-cation.

The Secretary of the Council explained that thesavings effected by the removal of the headquartersof ECAFE from Shanghai to Bangkok mightoffset this expenditure. However, if these savingswere not sufficiently large, it would be impossibleto carry out the projects. He further declared thatthe provisions of resolution 175 (VII) applied in


the case inasmuch as some of the work could notcommence until 1950 if supplementary funds werenot made available.

The representatives of Belgium, France and theUnited States stated their intention to abstainfrom the vote. They felt, as a matter of principlewhich applied to all regional economic commis-sions, that strict rules in financial matters shouldbe observed. They did not consider that the Secre-tariat had submitted sufficient details in thisrespect. The United Kingdom representative,after reconsideration, supported the proposal, whileemphasizing the importance of considering thecredit of $32,000 as a ceiling. The Australianamendment was adopted by 8 votes to 3, with5 abstentions.

After paragraph-by-paragraph votes, the Council,at its 271st meeting on 11 March 1949, adoptedresolution 187(VIII)A, by 15 votes, with 3 ab-stentions, as follows:

"The Economic and Social Council"Takes note of the interim report of the fourth

session of the Economic Commission for Asia and theFar East;

"Approves the action taken by the Commission re-garding the Bureau of Flood Control;

"Recommends that funds be allocated during the cur-rent financial year for the purposes set out in resolutions12, 13 and 15 of the report, should the budget for 1949prove insufficient;

"Approves an addition to paragraph 3 (a) (i) of theterms of reference of the Commission as establishedby the Council at its fourth session on 28 March 1947,and amended at the fifth and seventh sessions, to in-clude Nepal among those territories which may be ad-mitted as associated members of the Commission."

The inclusion of Korea within those territorieswhich may be admitted as associate members ofthe Commission was considered on the basis ofa joint proposal by China and the United States(E/AC.6/W.38), to amend the Commission'sterms of reference to include Korea, and transmitto ECAFE the application of the Government ofthe Republic of Korea. Both in the EconomicCommittee and in the Council, the delegations ofPoland, the USSR and the Byelorussian SSR wereof the opinion that the question of the Koreanapplication was not on the original agenda of theCouncil, and should not therefore be discussed;it should be included, if delegations so desired,on the agenda of its ninth session. A Polish draftresolution to this effect was rejected by the Councilby 3 votes in favour to 15 against.

Other delegations, including those of China,Chile and the United States, felt that the Commis-sion's report, in raising the question of associatemembership, enabled the Council to consider thequestion. They were in favour of the admissibility

of Korea, on the grounds that the General As-sembly, at the first part of its third regular session,had recognized the Republic of Korea as a lawfulGovernment. However, as the representative ofChina declared, the matter before the Council wasnot the question of admitting the Government ofthe Republic of Korea to membership on ECAFE,but whether the terms of reference of ECAFEshould be amended to allow that Government tolay its candidature before it.

The problem of the procedure for admissionof new members to ECAFE was considered. Dis-cussion followed on the precedents which hadbeen evolved in the cases of the admission ofViet-Nam and the Republic of Indonesia to asso-ciate membership.67 The question was raised bythe representative of Poland as to whether, byvirtue of the decision which the Council hadadopted at its fifth session, and in conformity withthe terms of reference of regional economic com-missions, the normal procedure for the admissionof new members had not provided for requests foradmission to be studied in the first place by thecommission concerned and only subsequently bythe Council, on the commission's report. Mostdelegations considered, however, that this wouldlimit the Council, which had the right to decideover which areas the competence of any particu-lar commission extended. Members of the Council,it was stated, were entitled to submit draft reso-lutions relating to the commission, its terms of ref-erence, its composition, its work in general andsimilar questions.

The joint proposal of China and the UnitedStates, with a United Kingdom amendment ac-cepted by the sponsors, was adopted by 15 votesto 3 in the Council's Economic Committee, and bythe Council, at its 270th meeting on 10 March1949, by 15 votes to 3 (187(VIII)B), as follows:

"The Economic and Social Council,"Taking into account General Assembly resolution

195(III) of 12 December 1948 and Council resolution144 (VII) B of 16 August 1948,

"Noting the communication of the Government ofthe Republic of Korea dated 7 January 1949 with re-spect to the admission of the Republic of Korea toassociate membership in the Economic Commission forAsia and the Far East,

"Amends the terms of reference of the EconomicCommission for Asia and the Far East as follows: 'Korea'shall be added to the list of territories in paragraph 2;'Korea' shall be added to the list of territories in para-graph 3 (a) ( i ) ; and paragraph 6 shall be revisedto read: '6. The Commission may consult with repre-sentatives of the control authority in Japan and may beconsulted by such representatives for the purpose ofmutual information and advice on matters concerning

67 See Yearbook of the United Nations, 1947-48, pp.536-37, and discussion on pp. 509-10.


the economy of Japan in relation to the economy ofthe rest of Asia and the Far East'; and

"Requests the Secretary-General to inform the Eco-nomic Commission for Asia and the Far East and theGovernment of the Republic of Korea of the changesmade in the terms of reference of the Commission."

b. ANNUAL REPORT

The regular annual report, July 1948 to April1949 (E/1329), including the activities of thefourth session of the Commission, held in Novem-ber-December 1949, and the meeting of the Com-mittee of the Whole in March-April 1949, wassubmitted to the ninth session of the Council andconsidered at its 297th meeting on 15 July 1949.

In the discussion which followed, the Councilmembers expressed their general support of thework of the Commission during this period. Ap-preciation was expressed for the Economic Surveyof Asia and the Far East, 1948. It was agreed thatthe Commission should continue to concentrate onpractical problems; the activities of the Bureau ofFlood Control were cited in this connexion.

The setting-up of subsidiary bodies to facilitateits task was a welcome development. In the draftresolution before the Council, the Commission hadrecommended the establishment of a Committee onIndustry and Trade, a Sub-Committee on Iron andSteel, and a Sub-Committee on Travel. Althoughthe majority of members expressed their approvalof these bodies, they pointed out that it would beinadvisable to establish committees where no ade-quate data existed, on which committees couldbase their work. The belief was expressed thatthe Commission, in limiting its committee struc-ture to one committee and two sub-committees,was wise in asking the secretariat to undertakefurther studies before establishing any additionalbodies.

The representative of the United States sup-ported, in general, the resolutions of the Commis-sion, the Committee of the Whole, and the pro-visions of the draft resolution before the Council.However, he considered that the Commission hadexceeded its authority in giving the Committee onIndustry and Trade terms of reference to the effectthat its decisions should be implemented withoutawaiting the approval of the Commission unlesssuch approval could be obtained within threeweeks after the close of the meeting of the Com-mittee. He drew attention to the possible bud-getary implications of this action, and suggestedthat the Commission might have consulted theCouncil before delegating its authority to one ofits committees, in a way which had been done bynone of the other regional economic commissions.

The representative of India expressed doubt asto whether the Committee of the Whole could re-solve (in establishing a Committee on Industryand Trade) to dissolve itself and set up anothercommittee in its place.

There was some difference of opinion as tothe main tasks of the Commission, particularly inthe fields of industrial and economic development.The representative of the USSR declared that theCommission would become a real organization foreconomic co-operation in Asia and the Far Eastwhen it began to achieve its main aims, which ithad failed to achieve thus far—namely, to assistits members in achieving national independenceand in raising their standards of living; he thoughtthat the Commission was preoccupied with sec-ondary matters rather than with these two essen-tial tasks.

The representative of India felt that the Com-mission had clarified its position in this respect.It had agreed that the initiative for economic andindustrial development lay with the nationalauthorities concerned; that industrial developmentcould only be furthered if national Governmentsdevised schemes for economic development; andthat they should seek the help of the Commissiononly when they found that they themselves couldnot solve their difficulties unaided. The Commis-sion, he believed, could collect additional relevantdata, with a view to indicating possible lines alongwhich activity might be directed. An approachshould be adopted based on particular projects.

Other representatives brought out specific pointsin the discussion. The representatives of Australiaand the United States also declared that the devel-opment of Asia and the Far East depended pri-marily upon the efforts of the peoples of that re-gion. The representative of China stressed theneed for technical training and the spread of tech-nical knowledge on a broad basis. The representa-tive of Chile put forward the view that the Com-mission had been wise in recognizing the inter-dependence of agriculture and industry; however,more attention should be given to agriculturaldevelopment. The representative of France con-sidered that a serious effort should be made to in-crease food production, to provide countries withthe funds needed for exploiting their raw mate-rials and converting them into industrial products.

Another question raised in the debate was thatof closer inter-regional co-operation between theregional commissions. Several Council membersfelt that there was much room for a greater ex-change of commodities and technological experi-ence among under-developed countries, an ex-


change in which the regional commissions couldbe of assistance.

The Council noted that the additional cost for1949 of enlarging the secretariat of ECAFE tocarry out new functions assigned to it could beborne by the existing budget (E/1329/Add.l).It decided, however, to insert a paragraph similarto that adopted in the case of the Economic Com-mission for Latin America, providing for additionalfunds should the 1949 budget prove inadequate.

Concerning the establishment of subsidiarybodies of the Commission, the representative ofthe United States pointed out that his delegationcould approve the establishment of a Committeeon Industry and Trade only on the understanding(1) that such approval did not constitute blanketapproval, in advance, of the establishment of anindefinite number of sub-committees under theprovisions of the resolution, and (2) that theCouncil would be informed of all proposals toestablish sub-committees where this would entailfinancial implications, in the same way as it hadbeen informed of the proposal to establish com-mittees. He stated that his point would be met ifthe record showed his reservation on this matter.

The Council, by 16 votes to none, with one ab-stention, adopted the following resolution 233-

"The Economic and Social Council"Takes note of the annual report of the Economic

Commission for Asia and the Far East for the period1 July 1948 to 5 April 1949, and of the accompanyingprogress report of the Bureau of Flood Control on itsprogramme of work;

"Approves the establishment of a Committee on In-dustry and Trade, a Sub-Committee on Iron and Steeland a Sub-Committee on Travel as subsidiary bodies ofthe Economic Commission for Asia and the Far East;and

"Recommends that the necessary funds be allocatedfor the purpose of implementing decisions of the fourthsession of the Commission and of the Committee of theWhole which require undertaking new studies and activi-ties, should the budget for 1949 prove inadequate."

On 12 August 1949, at the Council's 338th meet-ing, the representative of the United States sub-mitted a draft resolution (E/1513) concerning thesubmission of interim reports by ECAFE to theCouncil. This draft resolution, after being ap-proved in paragraph-by-paragraph votes, wasadopted by the Council by 14 votes to none, with3 abstentions (223(IX)B). It decided that theEconomic Commission for Asia and the Far Eastneed not in future submit interim reports at eachregular session of the Council. The Secretary-Gen-eral was also requested to submit from time totime, for the information of the Council, a state-ment of the activities of the Commission since thedate of its previous report.

N. ECONOMIC COMMISSION FOR LATIN AMERICA (ECLA)

The Economic Commission for Latin America(ECLA), established by the Economic and SocialCouncil at its sixth session (resolution 106(VI)),directed its first year's work towards developing asatisfactory work programme, maintaining a properbalance between urgent and immediate tasks andthe longer-term problems falling within the Com-mission's scope. At the same time, the Commis-sion was concerned with establishing satisfactoryrelations with other international organs workingin the same field, particularly the Inter-AmericanEconomic and Social Council, and with the special-ized agencies, and with commencing activitieswhich would enable it most effectively to carryout the Council's intentions.

Since its inception, it has held two sessions: thefirst at Santiago de Chile from 7 to 25 June 1948;68

the second at Havana, Cuba, from 29 May to 14June 1949. On the basis of studies prepared pur-suant to resolutions of the first session and resolu-tions adopted at its second session, the Commissionapproved its work programme for the period be-tween its second and third sessions.

1. Studies and Reports

The major project of the Commission was thepreparation of an economic survey of Latin Amer-ica along the lines of those prepared for Europeand for Asia and the Far East. A preliminary draftof the Economic Survey of Latin America, 1948(E/CN.12/82) was accordingly made availableto the second session of the Commission by thesecretariat, and was the basis for a full discussion,at that session, of the economic situation and pros-pects of Latin America. The Survey provided, with-in the limits of the data available, a comprehen-sive review of post-war trends of manufacturing,construction, agriculture and transport, of foreigntrade and balance of payments and of inflationarydevelopments, and included an examination of therelation of European recovery plans to LatinAmerica.

One of the major points brought out in the Sur-vey was the necessity for furthering development



in industrial activity, as well as in agriculture andother branches of primary production, in order toimprove the standard of living of the Latin Amer-ican peoples. The world depression of the 1930'sand the Second World War, by decreasing the im-ports of goods available to Latin America, hadalready started the trend in these countries towardsindustrialization. This increased industrialization,moreover, had not in any way prejudiced agricul-ture, or primary production in general, but therate of industrial growth had surpassed agricultureand contributed more directly to an improvedstandard of living. Latin America remained, how-ever, predominantly an agricultural economy, withagriculture accounting for 60 per cent of total em-ployment in many countries.

Although the war emergency had shown the in-dustrial possibilities of Latin America, it clearlydemonstrated that such development greatly de-pended on an active foreign trade. The prevailingeconomic structure necessitated large imports ofcapital goods for industrial development. Inflationalso tended to increase the demand for imports,thus bringing about adverse pressure on the bal-ance of payments. The severe drain on previouslyaccumulated monetary reserves compelled thecountries to adopt restrictive measures, in order toprotect their reserves. Thus, Latin American for-eign trade was passing through a period of read-justment in which imports were being redistributedaccording to the availability of foreign currencies.With regard to exports, the figures obtained showeda relatively small increase in volume. The pricerelation between exports and imports havingsteadily deteriorated over the period since the1870's, Latin America had to export its primarycommodities at a relatively low price as com-pared with the manufactured articles it had toimport.

In addition, it was stated, industrial develop-ment depended to a large extent on the increase inproductivity per man: a high increase of the cap-ital investment per man employed was needed toaccomplish this end. The main obstacle to theaccumulation of this investment was the scarcityand misdirection of savings.

The survey concluded that the satisfactory solu-tion of the problems of Latin American develop-ment depended, to a large degree, on systematicresearch into the structure and functioning of theeconomies of the various countries. It also pointedout the need for foreign capital and foreign in-vestment to enable Latin America to reach an in-tensive economic growth.

With regard to agriculture, a report was sub-mitted by the ECLA-FAO Joint Working Party

(E/CN.12/83), established by the Commission atits first session, after members of the party hadvisited each of the twenty Latin American repub-lics. The report presented a comprehensive pic-ture of agricultural requisites in Latin Americaand, on the basis of its findings, suggested a num-ber of recommendations for future action. Thesecretariat also submitted a report on prospects foragricultural development (E/CN.12/86). Withregard to technical assistance, a preliminary studyof the needs for technical assistance in LatinAmerica (E/CN.12/84) was based on a question-naire sent to the Latin American Governments inJanuary 1949. Part I of the study discussed the na-ture of the problem and described, within broadcategories, the kinds of technical assistance neededfor economic development; Part II presented state-ments of needs for specific projects in Bolivia,Chile, Ecuador, Guatemala, Panama and Venezuela.

Reports were also prepared by the Secretariaton the prospects for trade expansion (E/CN.12/-85), the proposed economic conference of theAmazon Basin countries (E/CN.12/88), immi-gration (E/CN.12/116), and transport and com-munications (E/CN.12/119). In addition, the In-ternational Monetary Fund submitted a study on"Multilateral Compensation of Payments—LatinAmerica" to the Commission's second session.

2. Second Session of the Commission

Representatives of seventeen Latin Americancountries and of France, the Netherlands, theUnited Kingdom and the United States were pres-ent at the Commission's second session, which washeld at Havana, Cuba, from 29 May to 14 June1949. Also in attendance were representatives andobservers from the International Labour Organisa-tion, the Food and Agriculture Organization, theInternational Monetary Fund, the United NationsEducational, Scientific and Cultural Organization,the World Health Organization, the Pan-AmericanSanitary Bureau, the Inter-American SanitaryBureau, the Inter-American Economic and SocialCouncil, and the Caribbean Commission.

The Commission concentrated its efforts on eval-uating the studies undertaken in pursuance of reso-lutions adopted at its first session, with specialemphasis placed on the economic survey of LatinAmerica. The problems of economic development,to which the report called attention, were exam-ined in the light of the whole economic structureof the region. It was agreed that urgent considera-tion be given to the need for adopting moderntechniques, and that to this end the technical assist-


ance programme of the United Nations would bevery valuable. Industrialization was the key to thesituation, it was felt, and agricultural developmentwas complementary to this. The stability of theLatin American countries depended upon thestrengthening and diversifying of their economies.

The Commission adopted a series of recom-mendations, formulating its work programme asfollows:

a. ECONOMIC SURVEYA second economic survey to be prepared along

the lines of the first was requested, but greateremphasis was to be made on the analysis of eco-nomic characteristics and conditions in the individ-ual countries or groups of countries.

b. AGRICULTURE AND FORESTRYThe secretariat was requested to make arrange-

ments with FAO to carry out joint studies on spe-cific agricultural problems, mainly on agriculturalcredit, utilization of water resources, transportationin relation to agricultural development, storage,distribution and marketing problems. These jointstudies were also to deal with the promotion ofthe development of the Latin American forestindustry and the exploration of practical meansfor developing and fostering exports of forest prod-ucts of Latin America to other parts of the world.

Two guiding principles for the future work bythe secretariat in this connexion were established(1) that any study dealing with the possibilitiesand needs of agricultural development in LatinAmerica should take into account, as a basic factor,the close inter-dependence between agricultural andindustrial development, and (2) that one of thebasic requirements for achieving increased agri-cultural productivity was the supply, at prices andin conditions accessible to farmers, of agriculturalmachinery, equipment and accessories adequatefor the needs of Latin America.

In addition, Governments were given a seriesof concrete recommendations on measures to betaken with regard to agricultural machinery, fer-tilizers, insecticides and fungicides, storage facili-ties, the promotion of the conservation and dis-tribution of fishery products, as well as the pro-vision of facilities for the purchase of equipmentfor the existing fishing fleet, agricultural extensionservices, agricultural education, agricultural credit,and transport.

c. FOREIGN TRADEAs a consequence of the specific suggestions in-

cluded in the report on prospects for trade expan-

sion, directed to find a solution of the shortage-of-dollar problems affecting most of the Latin Ameri-can countries, the Commission requested the secre-tariat to prepare studies on foreign trade. Thesewould cover: (1) the composition and directionof the foreign trade of Latin American countries,taking into account, among other things, the rela-tionship between foreign trade and projects foreconomic development; (2) the possibilities of ex-panding foreign trade, especially within the West-ern Hemisphere; (3) the examination, in conjunc-tion with the International Monetary Fund, of re-strictive trade measures in force, and the methodsin use for the settlement of trade balances.

The Commission also authorized the ExecutiveSecretary to call informal meetings of Governmentexperts to consider such studies when sufficientlyadvanced, with a view to making recommendationsto the third session. The International MonetaryFund was further requested to make studies withthe co-operation of the Commission secretariat toexplore the possibilities of partial multilateral com-pensation arrangements for the region.

d. ECONOMIC DEVELOPMENTThe Commission considered a report on eco-

nomic development in Latin America prepared bya special consultant (E/CN.12/89), and requestedthe secretariat to undertake further studies of ananalytical and interpretative nature on economicdevelopment in Latin America and, at the sametime, to initiate a study of cyclical fluctuation inthe region.

Moreover, and in connexion with the problemof financing economic development, the secretariatwas requested to consult with the Inter-AmericanEconomic and Social Council and with the special-ized agencies concerned, in order to prepare on aco-ordinated basis a study of the legal, economicand financial conditions affecting public and pri-vate capital investments in Latin America.

e. TECHNICAL TRAINING AND ASSISTANCE

The Commission took note of the preliminarystudy on technical assistance (E/CN.12/84), aprogress report of an expert of the InternationalLabour Office on inquiries conducted into voca-tional and technical training requirements andfacilities in Latin America (E/CN.12/90), and ofa notification by ILO concerning the decision of itsGoverning Body to create a committee for LatinAmerica on man-power within that organization,and a field office in Latin America designed to im-plement its man-power programme (E/CN.12/-AC.3/W.5). It resolved that the studies already


initiated on the needs for technical training andassistance in Latin America should be continuedand completed in co-operation with the Organiza-tion of American States.

The secretariat was also requested to make aspecial survey of facilities available and of therequirements in Latin America for economic re-search and training of economists.

f. OTHER STUDIES

According to resolutions approved at the secondsession, the secretariat was instructed to make astudy of transport problems, emphasizing the eco-nomic factors affecting transportation in LatinAmerica; to take into account the economic aspectsof tourism in future surveys; and to carry forward,in collaboration with the Department of SocialAffairs of the Secretariat at Headquarters and thespecialized agencies, the study on immigrationalready begun in accordance with the resolution ofthe first session. Those countries specially con-cerned with the problems of the development ofthe Amazon Basin were urged to initiate surveysand studies, and to work out the concrete plans re-quired for the development of the area, in co-operation with the Commission. The Commissionrecommended that these countries consider thedesirability of convening an economic conferenceof the Amazon Basin countries, as suggested bythe Economic and Social Council, to consider thesesurveys and studies when sufficiently advanced.

g. RELATIONS WITH THE INTER-AMERICANECONOMIC AND SOCIAL COUNCIL

At the Commission's second session, the repre-sentatives of the Inter-American Economic and So-cial Council presented a memorandum on co-ordi-nation between the Inter-American Economic andSocial Council and ECLA (E/CN.12/AC.4/W.2),which gave in considerable detail the history of therelations of these two organizations since the crea-tion of the Commission. The memorandum stated,inter alia, that the Inter-American Economic andSocial Council was of the opinion that it was notyet possible to separate the respective fields of activ-ity of ECLA and the Council. Separation of thetwo spheres of action, it felt, would perhaps bepossible at a later stage in development, but fur-ther efforts to that end were premature at the time.Thus, it concluded, co-ordination and co-operationof programmes and projects should be carried outthrough exchange of information and consultation,before work was initiated by either organization.

On the basis of this memorandum, the Execu-tive Secretaries of the Inter-American Economic

and Social Council and of ECLA prepared a jointstatement (E/CN.12/120), which pointed outthat the problems of co-ordination should not beviewed in a narrow sense, since the test of effectiveco-operation lay in the net result of their combinedefforts.

The Commission took note of the joint state-ment of the Executive Secretaries and consideredthat careful compliance with its aims would con-tribute to the adequate fulfilment of the mandateentrusted to the Commission by the Council's reso-lution 106 (VI), in particular paragraph 9, con-cerning the co-ordination of its activities with theInter-American System and the Caribbean Com-mission and the avoidance of duplication of effort.

3. Consideration by the Council of theCommission's Reports

a. INTERIM REPORT

The Economic and Social Council, at its eighthsession, was presented with an interim report bythe Executive Secretary of the Economic Commis-sion for Latin America (E/1099). The report wasdiscussed by the Economic Committee of the Coun-cil on 8 March 1949, and at the 270th plenarymeeting of the Council on 10 March 1949. Partic-ular reference was made to the collaboration ofECLA with the specialized agencies, to the tech-nical assistance studies, and to the work in prepara-tion for the Economic Survey of Latin America.The general support for the first phase of ECLA'swork was reflected in the unanimous adoption,after a brief debate, of resolution 188(VIII) asfollows:

"The Economic and Social Council"Takes note of the interim report of the Economic

Commission for Latin America."

The Annual Report (E/1330/Rev.l) of theEconomic Commission for Latin America for theperiod 26 June 1948 to 14 June 1949 was con-sidered by the Economic and Social Council duringthe latter's ninth session, at the 295th and 296thplenary meetings on 14 and 15 July 1949.

In the discussion which followed, several mem-bers of the Council emphasized the many economichandicaps of the Latin American countries. TheCommission's field of activity was one of great po-tential wealth, but economically still undeveloped.They felt, however, that the Commission had com-menced its work in an effective manner whichwould benefit all the Latin American countries andaid them in overcoming their difficulties.

It was recognized that, at its first and second


sessions, the Commission had been largely engagedon preparatory activities; however it was generallyfelt that through its studies, ECLA had alreadymade an important contribution to the better un-derstanding of Latin American economic problems.The first Economic Survey of Latin America andthe report of the Joint FAO/ECLA Working Partywere both favourably reviewed as valuable in thisconnexion. It was noted that the Commission it-self had requested that the second annual surveyshould be more analytical in character than the first,and agreement was expressed with this view.

The Council's attention was also drawn to theimportant role of foreign trade in the economiclife of the Latin American countries. Economiessuch as those of the Latin American countrieswere, it was pointed out, vulnerable to the down-ward economic trends in the more developed coun-tries. The request of the Commission for a thor-ough study of these problems was commented uponwith approval, and the expectation was expressedthat, through the proposed meeting of experts, theCommission would be able to reach important deci-sions in this matter.

The representative of Chile, describing theeconomies of Latin America as "open" economies,also drew the Council's attention to the impactupon them of changes in the terms of trade. Link-ing this with the Commission's programme ofwork on trade problems, he considered that thisinitiative, although modest, would assist LatinAmerican Governments in the resumption of tradeon a broader basis. Reviewing the general field ofthe Commission's work, he noted its formulation ofwhat he believed to be two fundamental considera-tions which stood as guiding principles for ECLA.These were that "the raising of the present lowstandard of living of most of the people of LatinAmerica, the social and political stability of theLatin-American countries, and the strengthening ofdemocracy throughout the continent are largelydependent upon the transformation of the economicstructures of those countries, by the strengtheningand diversifying of their economies"; and that "itis necessary to encourage the internal accumulationof capital and supplement, by means of foreigninvestment, the insufficiency of domestic savingscharacteristic of the majority of the Latin Ameri-can countries; and at the same time to utilize thatcapital in such a way as to raise productivity, andthereby national income, to the maximum". Therepresentatives of Brazil, Venezuela, Peru, Franceand the United Kingdom expressed similar views.

In addition, other specific points were broughtout in the debate:

(1) Agriculture was of primary importance in

the development of Latin America's economy. Itwas essential to intensify agricultural production,as the adverse balance of payments and maladjust-ment between the economies of the various LatinAmerican countries arose from the fact that thosecountries did not produce sufficient foodstuffs tofeed their populations. With regard to technicalassistance in this field, capital investment as wellas technical assistance would be necessary to ac-complish the desired result (Peru).

(2 ) Latin America and the countries of theFar East could exchange invaluable information;trade exchanges might also be increased (China).

(3) The economic problems of Latin Americawere strikingly similar to those of the Middle East;the work of ECLA was of a pioneering characterand extremely instructive to Middle Eastern coun-tries (Lebanon).

(4) It was necessary to secure statistical com-parability in the various studies made; the deci-sion that future surveys would provide a more de-tailed analysis of national economies by countries,or groups of countries with similar characteristics,was welcomed (United States).

(5) Collaboration with other regional commis-sions was desirable, but over-zealous efforts to co-ordinate the work of the regional commissionsmight lead to complications within the frameworkof the United Nations (United Kingdom).

(6) Immigration from Europe to Latin Amer-ica would be of great help in solving Latin Amer-ica's skilled man-power shortage. However, therewere limitations to this solution. For example, thestandard of living of the Latin American popula-tion could be lowered as a result of large-scaleimmigration (Chile, Venezuela and Peru).

It was unanimously considered that ECLA hadmade a promising start in its work, and had estab-lished good working relations with other inter-national agencies. The Commission's action inestablishing a work programme with priorities as-signed to specific tasks was specially commended.

While most delegations agreed that the pro-gramme of work foreseen should be carried outand additional funds made available in 1949, therepresentatives of the United States and the Byelo-russian SSR considered that the work should pro-ceed within the framework of existing appropria-tions.

The Council, by 15 votes to none, with 3 ab-stentions, adopted resolution 233 (IX) A, whichtook note of the annual report of the Commissionand recommended that the additional funds re-quired should, if needed in 1949, be made avail-able. The Council adopted, after a paragraph-by-


paragraph vote, part B of the same resolution, by14 votes to none, with 3 abstentions. The resolu-tion amended the terms of the Commission (para-graph 3) with respect to reporting, by deleting therequirement that the Commission make interimreports at each regular session of the Council, leav-ing the matter to the discretion of the Commission.The Executive Secretary was requested to submit

from time to time, for the information of the Coun-cil, a statement of the commission's activities sincethe date of its previous report. The Council re-jected a Chilean amendment, which requested theSecretary-General to submit to Council membersfor their information, before sessions of the Coun-cil at which the annual report was not discussed,a statement of ECLA's activities.

O. PROPOSED ECONOMIC COMMISSION FOR THE MIDDLE EAST

Consideration of the report of the ad hoc Com-mittee, appointed by the Council in March 1948,to study the factors bearing on the establishmentof an Economic Commission for the Middle East(ECME), was postponed at the Council's seventhsession owing to the pressure of other business.During the first part of the third regular session ofthe General Assembly, the matter was discussedin the Second Committee, at its 58th to 61st meet-ings from 4 to 13 October, its 63rd to 68th meet-ings from 15 to 30 October, and its 77th and 78thmeetings on 13 and 15 November 1948, re-spectively.

The representatives of Greece, Egypt, India, Iraqand Peru expressed the hope for the early estab-lishment of such a commission. Although the Arabcountries which were members of the Arab Leaguehad an economic commission, the representative ofIraq stated, that League did not include other States,such as Afghanistan, India, Iran, Pakistan andTurkey as well as other Arab territories. The coun-tries of the Middle East had suffered during theSecond World War and were still feeling the war'seffects through high prices, dislocation of industryand commerce, unemployment and scarcity of in-dustrial and capital goods. The lack of economicdata and statistics was obstructing the developmentof national economies. There was thus a need fora commission composed of all the countries of theregion, within the framework of the United Na-tions.

In this connexion, the representative of Syriasubmitted an amendment (A/C.2/135) to thedraft resolution of Haiti (A/C.2/131 and Rev. 1),concerning economic co-operation among under-developed countries and the training of technicalworkers in skills necessary to the evolution oftheir national economies. The amendment wouldhave the Assembly recommend to the Council togive primary consideration, at its next session, tothe report of the ad hoc Committee, with a viewto the speedy establishment of an Economic Com-mission for the Middle East.

These proposals, among others, were referred toa sub-committee consisting of the representativesof Czechoslovakia, Haiti, India, Iraq, Mexico, theNetherlands, New Zealand, Norway, Peru and theUkrainian SSR. The sub-committee subsequentlyagreed that two resolutions, and not one, be recom-mended to the Second Committee: one on eco-nomic development of under-developed countries(draft resolution A); and the other on the estab-lishment of an economic commission for the Mid-dle East (draft resolution B).

The Second Committee discussed the report ofthe sub-committee (A/C.2/141) at its 77th and78th meetings.69 Draft resolution B was adopted,on 15 November 1948, by 38 votes to 1, with 1abstention (A/C.2/W.7), and incorporated inthe report of the Second Committee on the Re-port of the Economic and Social Council (chap-ter II) (A/737). The report was discussed at theGeneral Assembly's 170th plenary meeting on 8December 1948. By 52 votes to none, with 1 ab-stention, resolution 199(III) was adopted, as fol-lows:

"The General Assembly"Recommends to the Economic and Social Council to

expedite the consideration of the establishment of aneconomic commission for the Middle East."

Accordingly, the report of the ad hoc Commit-tee was included on the agenda of the eighth ses-sion of the Council (E/AC.26/16). The Council,at its 270th meeting on 10 March 1949, unani-mously adopted a proposal presented by the repre-sentative of Lebanon (E/AC.6/W.39) to deferconsideration of the report of the ad hoc Commit-tee to the ninth session of the Economic and So-cial Council, in view of the continuing unsettledcondition in the Middle East. At its ninth session,the Council, at its 283rd meeting on 5 July 1949,again unanimously adopted a proposal presentedby the representative of Lebanon to defer until alater session discussion of this matter.

69 See pp. 433—36, for discussions on economic develop-ment of under-developed countries.

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