79 The Provisional Governing Council recalled that the question of the establishment of a self-sustaining financial mechanism under which the Intergovernmental NACA would operate and manage its affairs had first been studied in June 1986 by the Legal and Financial Working Group set up by then NACA Advisory Committee. It had recommended a grouping of governments based on levels of GDP, taking into account fisheries production and its potential. This recommendation had been endorsed by the First Session of the Provisional Governing Council in November 1986 subject to the request by a few governments that some other factors also be taken into consideration, in particular “ability to pay” and the position of city states and urban governments.
80 At its meeting from 29 September to 4 October 1988, the Working Party established at the Second Session of the Provisional Governing Council in January 1988, held an informal discussion on the levels of government contributions. It considered the various formulae referred to in Working Paper 13 but finally concluded that the original formula endorsed by the First Session of the Provisional Governing Council should be followed. It was on this basis that the proposed schedule of government contributions was prepared. The proposed schedule appears as Annex XXXI.
81 Following a request for clarification by one government, the Legal Adviser explained that the underlying principle for determining the scale of contributions at the United Nations as well as at FAO was that of “ability to pay”. This principle was, of course, very general in nature and had to be seen in the light of the context and requirements of each organization. As mentioned in Working Paper 13, this principle was also taken into account in the course of the various discussions which led to the present proposal.
82 All governments were able to confirm the interest of their authorities in the establishment of the Intergovernmental NACA and most representatives were in a position to state that the amount envisaged for their government's participation either appeared to be suitable or was already being considered by their government. A few governments had not yet defined their position.
83 In the light of the above, the Provisional Governing Council endorsed the proposed schedule of government contributions and requested the participating governments to initiate or continue internal procedures with a view to making contributions on this basis, thereby enabling the transformation of NACA into an independent intergovernmental organization; however, the representative of the Republic of Korea wished that the criteria on which government contributions have been based be reconsidered. The Provisional Governing Council underlined further that such procedures would have to be completed by August 1989.
84 On the questions of the location of the NACA Headquarters, the Council recommended that the headquarters continue to be located in Bangkok. In this connection, it authorized the NACA Coordinator to initiate negotiations with the Royal Thai Government.
85 Upon the request of the Coordinator with regards to the voluntary contributions from governments, the representatives of governments pledged for 1989 a total of US$ 66,500, as follows:
| a) | Bangladesh | : | To be communicated at a later date. |
| b) | China | : | As in 1988-US$ 30,000 |
| c) | Hongkong | : | As in 1988 - US$ 1,500 |
| d) | India | : | To be communicated at a later date. |
| e) | Indonesia | : | As in 1988 - US$ 10,000 |
| f) | DPR Korea | : | To be communicated at a later date. |
| g) | Republic of Korea | : | To be communicated at a later date. |
| h) | Nepal | : | To be communicated at a later date. |
| i) | Pakistan | : | To be communicated at a later date. |
| l) | Sri Lanka | : | As in 1988 - US$ 15,000. |
| m) | Thailand | : | As in 1988 - US$ 10,000. |
