Contents  

XIII. Appendix


A. Draft agreement between the United Nations and FAO
B. Proposed statement to The Economic and Social Council
C. Report of Director-General on International Institute of Agriculture
D. Report of Director-General on Comité International du Bois
E. Statement of Director-General on periodic reports of Member Governments
F. Report of Director-General on payment of contributions
G. Report of the Executive Committee to The Conference
H. Resolution on agricultural production adopted by The fifth session of The Council of UNRRA


A. Draft agreement between the United Nations and FAO

1. This Committee wishes to bring these observations to the attention of the Preparatory Commission set up by this Conference to consider the proposals for a world food board, since it feels that the achievement of maximum production for 1947-48 is partially dependent on the satisfactory and early solution of the problems discussed in these proposals.

2. The Food and Agriculture Organization of the United Nations recognizes the United Nations as the central agency for the collection, analysis, publication, standardization, and improvement of statistics serving the general purposes of international organizations.

3. The United Nations recognizes the Food and Agriculture Organization of the United Nations as the appropriate agency for the collection, analysis, publication, standardization and improvement of statistics within its special sphere, without prejudice to the right of the United Nations to concern itself with such statistics so far as they may be essential for its own purposes or for the improvement of statistics throughout the world.

4. The United Nations shall in consultation with the specialized agencies develop administrative instruments and procedures through which effective statistical cooperation may be secured between the United Nations and the agencies brought into relationship with it.

5. It is recognized as desirable that the collection of statistical information should not be duplicated by the United Nations or any of the specialized agencies when. ever it is practicable for any of them to utilize information or materials which another may hare available.

6. In order to build up a central collection of statistical information for general use, it is agreed that data supplied to the Food and Agriculture Organization of the United Nations for incorporation in its basic statistical series or special reports should so far as practicable be made available to the United Nations.

ARTICLE XIII

Administrative and Technical Services

1. The United Nations and the Food and Agriculture Organization of the United Nations recognize the desirability, in the interest of administrative and technical uniformity and of the moat efficient use of personnel and resources, of avoiding, whenever possible, the establishment and operation of competitive or overlapping facilities and services among the United Nations and the specialized agencies.

2. Accordingly, the United Nations and the Food and Agriculture Organization of the United Nations agree to consult together concerning the establishment and use of common administrative and technical services and facilities in addition to those referred to in Articles XI, XII and XIV, insofar as the establishment and use of such services may from time to time be found practicable and appropriate.

3. Arrangements shall be made between the United Nations and the Food and Agriculture Organization of the United Nations in regard to the registration and deposit of official documents.

ARTICLE XIV

Budgetary and Financial Arrangements

1. The Food and Agriculture Organization of the United Nations recognizes the desirability of establishing close budgetary and financial relationships with the United Nations in order that the administrative operations of the United Nations and of the specialized agencies shall be carried out in the moat efficient and economical manner possible, and that the maximum measure of coordination and uniformity with respect to these operations shall be secured.

2. The United Nations and the Food and Agriculture Organization of the United Nations agree to cooperate to the fullest extent possible in achieving these ends and, in particular, shall consult together, concerning appropriate arrangements for the inclusion of the budget of the Organization within a general budget of the United National Such arrangements shall be defined in a supplementary agreement between the two organizations.

3. Pending the conclusion of such agreement, the following arrangements shall govern budgetary and financial relationships between the Food and Agriculture Organization of the United Nations and the United Nations:

 

(a) The Secretary-General and the Director-General shall arrange for consultation in connection with the preparation of the budget of the Food and Agriculture Organization of the United National

(b) The Food and Agriculture Organization of the United Nations agrees to transmit its proposed budget to the United Nations annually at the same time as such budget is transmitted to its members. The General Assembly shall examine the budget or proposed budget of the Organization and may make such recommendations as it may consider necessary. (e) Representatives of the Food and Agriculture Organization of the United Nations shall be entitled to participate, without vote, in the deliberations of the General Assembly or any Committee there of at all times when the budget of the Food and Agriculture Organization of the United Nations or general administrative or financial questions affecting the Organization are under consideration.

(d) The United Nations may undertake the collection of contributions from those members of the Food and Agriculture Organization of the United Nations which are also members of the United Nations in accordance with such arrangements as may be defined by a later agreement between the United Nations and the Organization.

(e) The United Nations shall, upon its own initiative or upon the request of the Food and Agriculture Organization of the United Nations, arrange for studies to be undertaken concerning other financial and fiscal questions of interest to the Organization and to other specialized agencies with a view to the provision of common services and the securing of uniformity in such matters.

(f) The Food and Agriculture Organization of the United Nations agrees to conform as far as may be practicable to standard practices and forma recommended by the United Nations.

ARTICLE XV

Financing of Special Services

1. In the event of the Food and Agriculture Organization of the United Nations being faced with the necessity of incurring substantial extra expense as a result of any request which the United Nations may make for special reports, studies or assistance in accordance with Articles V, VI, VII, or with other provisions of this Agreement, consultation shall take place with a view to determining the most equitable manner in which such expense shall be borne.

2. Consultation between the United Nations and the Food and Agriculture Organization of the United Nations shall similarly take place with a view to making such arrangements as may be found equitable for covering costs of central administrative, technical or fiscal services or facilities or other special assistance provided by the United National

ARTICLE XVI

Interagency Agreements

The Food and Agriculture Organization of the United Nations agrees to inform the Council of the nature and scope of any formal agreement between the Organization and any other specialized agency, intergovernmental organization or nongovernmental organization and in particular agrees to inform the Council before any such agreement la concluded.

ARTICLE XVII

Liaison

1. The United Nations and the Food and Agriculture Organization of the United Nations agree to the foregoing provisions in the belief that they will contribute to the maintenance of effective liaison between the two organizations. They affirm their intention of taking whatever further measure may be necessary to make this liaison fully effective.

2. The liaison arrangements provided for in the foregoing articles of this Agreement shall apply as far as appropriate to the relations between such branch or regional offices as may be established by the two organizations as well as between their central machineries.

ARTICLE XVIII

Implementation of the Agreement

The Secretary-General and the Director-General may enter into such supplementary arrangements for the implementation of this Agreement as may be found desirable in the light of the operating experience of the two Organizational

ARTICLE XIX

This Agreement shall be subject to revision by agreement between the United Nations and the Food and Agriculture Organization of the United National

ARTICLE XX

Entry into Force

This Agreement shall come into force on its approval by the General Assembly of the United Nations and the Conference of the Food and Agriculture Organization of the United National

New York, 10 June 1946

Signed

A. RAMASWAMI MUDALIAR
President of the Economic and Social Council of the United Nations and Chairman of the Committee of the Council on Negotiations with Specialized Agencies.

ANDRÉ MAYER
Chairman of the Executive Committee of the Food and Agriculture Organization of the United Nations and Chairman of the Negotiating Delegation of the Food and Agriculture Organization of the United Nations.

B. Proposed statement to The Economic and Social Council

On Access by FAO to the International Court of Justice

1. Reference to Article XVII of the Constitution of the Food and Agriculture Organization of the United Nations indicates that it was clearly the intention of the United Nations Interim Commission on Food and Agriculture that provision should be made for access by FAO to the International Court of Justice.

2. The Constitution of FAO in Article XVII, Interpretation of Constitution, provides:

 

Any question or dispute concerning the interpretation of this Constitution or any international convention adopted thereunder shall be referred for determination to an appropriate international court or arbitrary tribunal in the manner prescribed by rules to be adopted by the Conference.

3. At the time the FAO Constitution formulated and adopted, the United Nations had not come into existence and it was not certain what form the International Court would take. Therefore the Constitution explicitly provided for the adoption of rules by the Conference. concerning the manner of referring questions or disputes to " an appropriate international court or arbitral tribunal ."

4. In the negotiations between the negotiating committees of the Economic and Social Council and of FAO, the former proposed that FAO should receive similar rights of access to the Court as those provided for in the draft agreement with UNESCO, as follows:

 

The Organization is authorized, pursuant to Article 96 of the Charter of the United Nations to submit to the International Court of Justice, requests for Opinions on legal questions arising within the scope of its activities other than questions concerning the mutual of the Organization and UN or other specialized agencies, provided that the Organization shall give prior notice to the Council of all such requests. The Council shall have the right to declare that in its judgment any such request should not be made. If, after the Council has made such a declaration, the request is not withdrawn, the General Assembly shall itself determine whether the request shall be submitted to the Court.

5. The negotiating committee of FAO maintained that the Organization should receive similar treatment to that provided for in the draft agreement with the International Labour Organisation, namely:  

The General Assembly authorizes the International Labour Organisation to request advisory opinions of the International Court of Justice on legal questions arising within the scope of its activities other than questions concerning the mutual relationships of the organization and the United Nations or other specialized agencies.

Such request may be addressed to the Court by the Conference. or by the Governing Body acting in pursuance of an authorization by the Conference.

When requesting the international Court of Justice to give an advisory opinion the International Labour Organisation shall inform the Economic and Social Council of the request.

6. Since no agreement could be reached on this point, it wee decided to leave Article IX (Relationships of the International Court of Justice) blank in the draft agreement between the United Nations and FAO pending further consideration by the Council. The Executive Committee of FAO, at its meeting of June 28 to July 2, after receiving the report of the FAO negotiating committee, unanimously upheld the view taken by the negotiating committee.

7. The position of FAO is as follows:

The Organization is in agreement with the Economic and Social Council that questions concerning the mutual relationship of the Organization and the United Nations or other specialized agencies should be excluded from any general authorization for reference to the Court. It is most desirable that any such questions should as far as possible be settled through the medium of whatever coordinating machinery is set up by the United Nations and the specialized agencies rather than that they should be referred to the Court.

8. The Executive Committee of FAO, however, feels strongly that in the matter of access to the Court the position of FAO is parallel to that of ILO. During the negotiation of the draft agreement, the spokesmen for ESC justified the preferential treatment which they proposed to give to ILO on two grounds: (1) the oratorical position of ILO, and (2) that the Labour Organisation had negotiated and was responsible for international action in regard to a large number of labor conventions. In regard to the first point, the responsibilities of FAO and its terms of reference are as wide and important as those of ILO. In regard to the second point, FAO will undoubtedly find it necessary to negotiate many conventions, and provision is made for this in the Constitution, Article IV, paragraph 3:

 

The Conference may by a two-thirds majority of the votes east submit conventions concerning questions relating to food and agriculture to member nations for consideration with a view to their acceptance by the appropriate constitutional procedure.

9. The type of international conventions which may be negotiated through FAO and submitted to member nations will be concerned with undertakings by government in regard to raising of national levels of nutrition and standards of living, improvement of agricultural production and distribution, and betterment of the condition of rural populations. Any such convention must operate nationally and therefore will be analogous to many of the labor conventions.

10. International conventions for the regulation of fisheries either to avoid disputes or to promote the conservation of marine resources are also important and fall within the terms of reference of FAO.

11. As a result of the absorption by FAO of the functions of the International Institute of Agriculture FAO has, as from 1 August, taken over responsibility for a number of conventions, namely:

 

- Convention for Locust Control

- Convention for Plant Protection

- Convention concerning Marketing of Eggs in International Commerce

- Convention for the Standardization of Methods of Cheese Analysis

- Convention on the Standardization of the Methods of Analyzing Wines

- Convention for the Standardization of Methods of Keeping and Utilizing Herd Books

12. If FAO is not given general authorization similar to that proposed for ILO to refer to the Court questions or disputes concerning any international convention adopted under Article IV of its Constitution, then matters affecting nutrition, Agriculture fisheries, forestry, and rural welfare will not be given the same international status as matters affecting labor relations.

4 September 1946

C. Report of Director-General on International Institute of Agriculture 1. The First Session of the Conference made the following recommendations on the International Institute of Agriculture:  

"1. That those governments which are members both of the Food and Agriculture Organization of the United Nations (hereinafter called 'the Organization') and of the International Institute of Agriculture at Rome (hereinafter called 'the Institute') acting through the Permanent Committee of the Institute, call a session of the General Assembly as aeon as possible, but not later than June 30, 1946."

"2. That the Permanent Committee of the institute be requested to prepare a scheme to be approved by a majority of votes in the General Assembly, as follows:

 

(a) A Protocol shall be concluded and signed by signatory and adhering governments to the Convention of Rome of June 7, 1905, by which the affairs of the Institute, including its Annex, the Centre International de Sylviculture, shall be wound up, as from a date to be determined by the Protocol.

(b) The Permanent Committee shall be empowered by the Protocol and shall be instructed accordingly by the General Assembly (i) to wind up the affairs of the Institute, and (ii) to transfer the library, archives, and property of the Institute to the Organization, which will decide their location.

(c) The Protocol shall further provide that in the execution of the provisions of the international conventions which attribute functions to the Institute, the Organization shall be substituted for the Institute, and governments which are not signatories of or do not accede to the Protocol, shall be notified thereof, and shall be invited to cooperate in the execution of this proposal.

"3. That the United Nations require in peace treaties with enemy countries now under occupation that those countries carry out the provisions of the Protocol.
2. Insurance of these recommendations the Permanent Committee of the Institute met on March 30, 1946 and, under the presidency of Mr. David McK. Key United States Charge d'Affaires in Rome, approved a Protocol (of which the principal clauses are cited in Annex I to this Report) for the dissolution of the Institute, together with a covering resolution for submission to the General Assembly of the Institute on July 8.

By that date the Protocol had been signed on behalf of thirty-eight members of the Institute, and four more signed immediately afterwards. At the meeting of the General Assembly, at which all but five countries were represented, the resolution approving the Protocol and directing the Permanent Committee to wind up the affairs of the Institute was adopted by a unanimous vote without abstentions.

3. Under the Protocol the affairs of the Institute will not be formally wound up and its assets and liabilities transferred to FAO until the date on which the Permanent Committee notifies member governments that its task of liquidation is completed. This is not likely to be accomplished till about the end of the current year. Meanwhile, in order to insure that the work of the Institute should continue and that the interests of its employees should not be prejudiced, it was agreed in the terms of a letter addressed to the President of the Institute by the Director-General on June 1° (Annex III) that the functions of the Institute (including the Centre International de Sylviculture) together with its libraries, archives and equipment should be transferred to FAO on August 1, 1946, and that employees of the Institute resident in Rome should be offered temporary employment with FAO as from that date.

4. The principal tasks of the Permanent Committee in carrying out the process of liquidation will be to collect the arrears of contributions from member governments and to pay the sums due to members of the staff either as a matter of legal right or under voluntary arrange" meets approved by the General Assembly for bonus payments designed to compensate for the effect of currency devaluation on the pension and indemnity funds of the Institute.

5. At the time of the meeting of the General Assembly the arrears of contributions (other than those regarded as irrecoverable) amounted in total to the equivalent of 5,768,295 Swiss francs (excluding contributions of 1,624,760 Swiss francs due in respect to the current financial year). This sum would be sufficient to meet the whole of the Institute's liabilities, including voluntary bonus payments to members of the staff which in the view of the General Assembly constitute a moral obligation on the Institute and which represent by far the largest liability. Difficulties will however arise unless a considerable proportion of the arrears is paid in the near future. FAO cannot for obvious reasons accept any responsibility for the bonus payments and in face of the uncertainty about the arrears of contributions was unable to accede to a request from the Institute for a temporary advance of funds pending the receipt of overdue contributions. Several of the member governments of the Institute have already indicated that their contributions will be paid in full and it is hoped that other governments that are also members of FAO will take similar steps with the minimum of delay.

6. Arrangements have been made for a member of the staff of FAO to assume direction of the work of the Institute on August 1 with the help of an advisory committee made up of members of the Permanent Committee of the Institute. Any member of the staff of the Institute resident in Rome who wishes to be considered for permanent appointment to the staff of FAO and is not over-age will have an opportunity of applying for such appointment and will be employed by the Organization on a temporary footing until such time as a decision has been reached on 0a application, without prejudice to his right to any bonus granted by the Institute.

7. The work to be carried on at Rome needs careful consideration. The Italian Government has generously offered to place the Institute building at the disposal of FAO, and on the motion of that Government the General Assembly passed a resolution requesting FAO to give serious consideration to the possibility of establishing a European regional office in Rome. The general question of regional offices is discussed in the Director-General's First Annual Report to the FAO Conference but whatever decision may be reached on the time and place for the establishment of a regional office in Europe, it is doubtful whether Rome is central enough to be suitable for the purpose. It is however clearly desirable that FAO should have the use of the Institute building until such time as the activities carried on there can either be transferred to headquarters or allocated to a European regional office.

8. Meanwhile these activities must as soon as possible be integrated with the work of FAO as a whole, 80 that duplication of effort may be avoided in accordance with the Quebec resolution and governments may be spared the confusion and annoyance of receiving inquiries and requests for information on the same subjects from different sources.

9. The library and statistical services of the Institute have already been reported on by experienced members of the staff of the United States Department of Agriculture who visited the Institute last spring at the request of the Director-General. The branches of the Institute dealing with economies, agricultural production and legislation will be fully investigated immediately after this session of the Conference by one of the Special Advisers to the Director-General and the Director of the Economics and Marketing Division of FAO.

10. On the statistical side it is proposed that the work necessary for the publication of the Institute's Yearbook now in preparation should be completed in Rome, with the aid of any supplementary material that can be supplied from headquarters, but that the collection of current statistics should be concentrated in the newly established Food Reporting Service of FAO.

11. The problem of the Institute library was examined at the informal meeting of experts on statistical, scientific and technical information services held in London between 10 and 13 April. The meeting expressed the opinion that "no useful purpose would be served by moving the IIA library as a whole to the United States, since such a move would merely result in considerable duplication of existing resources in America while seriously depleting the limited research resources of Europe," and made some suggestions which are being carefully considered. It may be that the IIA library should be equipped to serve as a working reference collection for Europe, but no final decision can be taken until the question of a regional office is settled. Meanwhile the library will be maintained in Rome and will be brought up to date so far as possible with statistical periodicals and the like, but no new books will be bought for the time being.

12. Recommendations made by the Executive Commit. tee with the object of facilitating the consideration of applications from nations members of the International Institute of Agriculture that desire to become members of FAO of a separate paper (Con separate 7) circulated to the Conference.

13. It is hoped that by these means continuity, between the work of the Institute and that of FAO will be assured and that the good will built up in member countries by the Institute over forty years of pioneer work will be maintained.

Annex I

Extracts from Protocol Terminating the Rome Convention of June 7, 1905

ARTICLE I

From the date to be announced by the Permanent Committee of the Institute in accordance with Article III of this Protocol, the Convention signed at Rome on June 7, 1905, by which the Institute wee created, shall be no longer of any effect as between the parties to this Protocol, and the Institute (including the Center) there. upon shall be brought to an end.

ARTICLE II

The Permanent Committee of the Institute shall, in accordance with the directions of the General Assembly of the Institute, bring the affairs of the Institute (including the Center) to an end and for this purpose shall

(a) collect and bring together all assets of the Institute (including the Center) and tale possession of the libraries, archives, records, and movable property thereof;

(b) pay and satisfy all outstanding debts and claims for which the Institute is liable;

(c) discharge the employees of the Institute and transfer all personnel files and records to the Organization;

(d) transfer to the Organization possession of and full title to the property in the libraries, archives, records, and all residual assets of the Institute (including the Center).

ARTICLE III

When the duties assigned to it by Article II of this Protocol have been completed, the Permanent Committee of the Institute shall forthwith, by circular letter, notify the Members of the Institute of the dissolution of the Institute (including the Center) and of the transfer of the functions and assets thereof to the Organization. The date of such notification shall be deemed to be the date of the termination of the Convention of June 7, 1905, and also the date of the dissolution of the Institute (including the Center).

ARTICLE IV

Upon bringing to an end the affairs of the Institute (including the Center) the powers, rights or duties attributed to it by the provisions of the International Conventions listed in the Annex of this protocol, shall devolve upon the Organization; and the parties to this Protocol which are parties to the said conventions shall execute such provisions, insofar as they remain in force, in all respects as though they refer to the Organization in place of the Institute

Annex II

List of Conventions to which Article IV of the Protocol Relates

International Convention for Locust Control, dated at Rome October 31, 1920.

International Convention for Plant Protection, dated at Rome, April 16, 1929.

International Convention Concerning the Marketing of Eggs in International Trade, dated at Brussels, December 11, 1931.

International Convention for the Standardization of the Methods of Cheese Analysis, dated at Rome, April 20, 1934.

International Convention for the Standardization of Methods of Analyzing Wines, dated at Rome, June 5, 1935.

International Convention for the Standardization of Methods of Keeping and Utilizing Herd Books, dated at Rome, October 14, 1938.

Annex III

2000 Massachusetts Avenue, N. W.,
Washington 6. D.C.
June 12, 1946

Mr. David McK. Key, President
International Institute of Agriculture
Rome, Italy

My Dear Mr. Key:

Under the Protocol now in process of adoption by member governments of the International Institute of Agriculture and the resolution to be presented to the General Assembly at its forthcoming session, the Permanent Committee of the Institute is charged with the duty of bringing the affairs of the Institute (including the International Forestry Center) to an end and, for that purpose, of undertaking certain teaks set out in Article II of the Protocol and in paragraphs 2 (a) - (e) of the proposed resolution. The formal dissolution of the Institute and the final transfer of its functions and assets to the Food and Agriculture Organization can take place only when these tasks have been completed.

It seems probable that, while acme of the tasks imposed on the Permanent Committee can be completed in a short time, others may take several months to accomplish. It would be unfortunate if delay in the process of dissolution should adversely affect the employees of the Institute resident in Rome or the functions of the Institute and the libraries, archives, records and equipment used in the normal course of business of the Institute or the International Forestry Center.

For that reason I propose on behalf of the Food and Agriculture Organization

(a) that the functions of the Institute (including the International Forestry Center) and the full title to the property in such functions and in the libraries, archives, records and equipment used in the normal course of business of the Institute or the Center shall be transferred to FAO as from 1st August 1946;

(b) that any person in the employ, of the Institute who is resident in Rome on 31st July 1948 shall cease to be employed by the Institute at midnight on that day and shall, if he so desires, be come a temporary member of the staff as from 1st August 1940, without prejudice to any bonus based on the pension fund (fonds de retraite) and/or the indemnity tuna (fonds de resiliation) which may accrue to him under voluntary arrangements made by the Institute over and above its legal obligations, and without any obligation on the part of FAO to offer him permanent employment. It would be a condition of temporary employment by FAO that payment of any bonus may be deferred until the date on which the employee retires or is discharged from the employ of FAO.

The employees concerned may be divided into four categories.

Category I-persons aged 65 or over. These persons, who are due for retirement, would be offered contracts with FAO at their current rate of salary for a period of one month, which would allow them time to complete their work or arrange for its transference to some other member of the staff. The appropriate bonuses under the arrangements mentioned above would be paid to them on retirement at the end of the month.

Category II-persons under 65 who do not wish to apply for permanent appointment with FAO. These would likewise be offered contracts for one month only on the same conditions and for the same purposes as persons in Category I and would receive the appropriate bonuses at the end of the month.

Category III-persons who apply for permanent appointment with FAO but who for whatever reasons do not become permanent members of its staff. These persons would be offered temporary appointment at their current rate of salary for an indefinite period subject to one month's notice and would receive the appropriate bonuses at the date at which the notice takes effect.

Category IV-persons who ultimately enter into the permanent service of FAO. These persons would be offered temporary appointment on the same conditions as persons in Category III, until such time as they became permanent members of the staff. The terms and conditions of service would thereafter be similar to those applicable to other persons joining the permanent staff of the Organization, subject to suitable provision for their existing pension rights and the appropriate bonuses to be assimilated into the pension or provident scheme for the time being in force for the staff of the Organization.

I believe that the above plan is not only just and advantageous in itself but that it will lighten the burden of the Permanent Committee in carrying out the procedure of dissolution. If the plan is acceptable to the Permanent Committee, I would suggest that the duplicate copy of this letter which I am enclosing should be signed by you as President and returned to me, whereupon the letter will be regarded as constituting a binding agreement between the Institute and the Food and Agriculture Organization.

JOHN BOYD ORB
Director-General

Approved by Permanent Committee of the International Institute of Agriculture
JULY 1, 1946

DAVID McK. KEY, President
26 July 1946

D. Report of Director-General on Comité International du Bois

1. The following recommendation was made by the Conference at its First Session:  

"1. That those governments which are members both of the Food and Agriculture Organization of the United Nations (hereinafter called 'the Organization') and of the Comité International du Bois (hereinafter called the 'C.I.B.') call a session of the Permanent Committee of the C.I.B. as soon as possible, but not later than June 30, 1946 with a view to making the necessary arrangements under Article IX of the Statute of the C.I.B. for:

 

(a) the winding up of the affairs of the C.I.B.; and

(b) the transfer of the library, archives, and property of the C.I.B. to the Organization which will decide their location.

"2. That FAO carry on such of the activities of the C.I.B. as are consistent with the purposes of the Organization as set forth in its Constitution."
2. The C.I.B. whose full title is The Permanent International Committee on Wood Production, Trade and Industry, was formed 11 June 1932 in Vienna by the "organizations dealing in wood production, in the wood industry, or in trade in wood, in Austria, Poland, Rumania, Czechoslovakia and Yugoslavia" for the purpose of " obtaining by economic means an improvement of general conditions in the international wood trade, as well as prosperity for all the interests concerned in the production, industry or trade."

3. The private character of the organization is evident from its composition as well as from the purposes for which it was formed. Besides the Polish State Department of Water and Forests and the Rumanian Independent Office of Forests, the C.I.B. included from the beginning private groups of traders and businessmen dealing in wood in the above mentioned countries. Later other groups of the same nature were added. Moreover the directors of the Comité were chosen from among the largest owners of forests in Poland and Austria. The feet that official organizations such as the French Department of Water and Forests became members of the C.I.B. did not alter the essential character of the organization, although certain phrases used in its statutes (e. g. "member countries" in Article II) were no doubt intended to suggest that it was an official organization of which governments were members. The French Ministry of Foreign Affairs, for example, was never in any doubt about the real character of the C.I.B., whose fundamental aim, since 1932, has been to defend the interests of producers in the wood exporting countries, especially of central Europe. In an endeavor to get over the equivocal character of the organization the directors were engaged just before the war in efforts to create " by diplomatic convention " an " international council on wood " to " regularize the collaboration of the C.I.B. and the various governments."

4. The C.I.B. can be dissolved in accordance with the conditions set forth in Article IX of its statutes by a special meeting of the Permanent Committee, which can be convoked on the initiative of its President, Count Ostrowski, who is at present in London and is understood to be willing to call a meeting. The difficulty from the point of view of FAO is that it appears from present information that the C.I.B. has no assets and only liabilities .

5. The liabilities of the C.I.B. are understood to amount in total to about $15,000 consisting of:

 

(a) a debt of about 1200 pounds sterling owed to the Bank Chipley in London since August 1, 193°:

(b) a debt of 100,000 Belgian francs due to the Imprimerie Brenner of Brussels;

(c) 3,000-5,000 dollars which are said to represent an advance made by certain staff members of the C.I.B. for the payment of salaries to personnel of the Centre after September 1, 1939.

6. The only assets would be the archives and the library which were in Brussels when it was occupied by the Germans and whose subsequent fate is uncertain. They may have been transferred to the German Ministry of Agriculture and later destroyed in the bombardments of Berlin, but according to other evidence they were handed over by the Germans to the Centre International de Sylviculture and assimilated into its archives and library. The facts can be verified only when FAO takes over the administration of the C.I.S. as a branch of the International Institute of Agriculture on August 1. It is hoped that the necessary investigation can be carried out and a further report submitted to the Conference. in the light of which it will be possible for the Conference. to decide whether the remaining assets of the C.I.B. are sufficient to justify the assumption by FAO of liability for the debts of the C.I.B. or whether in the absence of any tangible assets FAO would be justified in accepting the liability for the sake of maintaining for the benefit of its future work in the field of forestry and forest products the good will created by the C.I.B.

30 June 1946


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