UNITED NATIONS INDUSTRIAL DEVEL~PM]NT ORGANIZATION

R~PORT OF THE ~ INDUSTRIt\1 DEVELOPMENT BOARD r I I j on the worI of its first session ~ 1~ April-5 May 1967 \ r GENERAL ASSEMBLY ( OFFICIAL RECORDS: TWENTY·SECOND SESSION ~ SUPPLE~ENT No. 15 (A/6715/Rev.1) ~ ! r' r UN.fED NATIONS

I I, I I UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION

REPORT OF THE INDUSTRIAL DEVELOPMENT BOARD on the work of its first session

10 April-5 May 1967

GENERAL ASSEMBLY OFFICIAL RECORDS: TWENTY-SECOND SESSION SUPPLEMENT No. 15 (A/67IS/Rev.l)

UNITED NATIONS New York, 1967 NOTE ..j

SYMBOLS to 5 May 1967) appear in documents ID/B/SR.1 to 39. The summary records of the meetings of the Sessional I Symbols of United Nations documents are com­ , Committee, held between 11 April and 1 May 1967, posed of capital letters combined with figures. Mention appear in documents ID/B/C.1/SR.1 to 8. of such a symbol indicates a reference to a United Nations document. The documents of the Industrial Development Board of the United Nations Industrial RESOLUTIONS Development Organization and its subsidiary bodies Symbols of resolutions of the Industrial Development are identified as follows: Board consist of an arabic numeral, indicating the serial Industrial Development Board . ID/B/ nnmber of the resolution, and a roman numeral in Sessional committees of the Board . ID/E/C.I/ parentheses, indicating the number of the session at Information series of the Board . ID/B/INF. which the resolution was adopted.

SUMMARY RECORDS RULES OF PROCEDURE The summary records of the meetings of the first The rules of procedure adopted by the Board at its J session of the Industrial Development Board (10 April first session have been issued as document ID/B/18. \

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i ~, I CONTENTS Page ABBREVIATIONS . . iv INTRODUCTION . 1 Chapter Paragraphs I. ORGANIZATION OF THE SESSION 1-13 1 II. RULES OF PROCEDURE ...... 14-25 2 Ill. ESTABLISHMENT OF THE HEADQUARTERS OF THE UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION . 26-39 3 IV. GENERAL DEBATE . 40-104 4 V. FUTURE PROGRAMME OF WORK AND ACTIVITIES . 105-208 10 VI. INTERNATIONAL SYMPOSIUM ON INDUSTRIAL DEVELOPMENT . 209-226 25 VII. CO-ORDINATION OF ACTIVITIES OF THE UNITED NATIONS SYSTEM OF ORGANIZATIONS IN THE FIELD OF INDUSTRIAL DEVELOPMENT . 227-243 26 VIII. REVIEW OF ACTIVITIES OF THE UNITED NATIONS SYSTEM OF ORGANI- ZATIONS IN THE FIELD OF INDUSTRIAL DEVELOPMENT . 244-250 29 IX. ORGANIZATIONAL MATTERS, INCLUDING THE STRUCTURE AND FUNC- TIONS OF THE SECRETARIAT . 251-273 30 X. FINANCIAL QUESTIONS . 274-309 32 XI. RELATIONS WITH INTERGOVERNMENTAL AND NON-GOVERNMENTAL ORGANIZATIONS . 310-314 35 XII. PLANNING OF THE SECOND SESSION OF THE INDUSTRIAL DEVELOP- MENT BOARD , . 315-323 36 XIII. ADOPTION OF THE REPORT OF THE BOARD TO THE GENERAL ASSEMBLY AT ITS TWENTY-SECOND SESSION . 324 37 ANNEXES I. List of participants . 39 n. General Assembly resolution 2152 (XXI) of 17 November 1966 establishing the United Nations Industrial Development Organization 44 IH. Establishment of the headquarters at Vienna . 45 A. Agreement between the United Nations and the Republic of Austria regarding the headquarters of the United Nations In- dustrial Development Organization . 45 B. Exchange of Notes between the United Nations and the Republic of Austria of 13 April 1967 . 50 C. Letter dated 18 April 1967 from the President of the Industrial Development Board to Mr. Carl Bob1eter, Under-Secretary of State for Foreign Affairs of Austria . 51 D. Statement made by Mr. Carl Bohleter, Under-Secretary of State for Foreign Affairs of Austria, at the 3rd meeting of the Board, on 11 April 1967 . 51 IV. Report of the Sessional Committee on the rules of procedure . 53 V. Message dated 10 April 1967 from the Secretary-General to the Industrial Development Board at its first session . 62 VI. Statement made by the Executive Director at the 3rd meeting of the Industrial Development Board, on 11 April 1967 . 62 VII. Statement made by the Executive Director at the 23rd meeting of the Industrial Development Board, on 28 April 1967 . 68 VIII. Resolutions adopted by the Industrial Development Board at its first session . 70 IX. List of documents before the Industrial Development Board at its first session . 72 iii ABBREVIATIONS ECA Economic Commission for Africa ECAFE Economic Commission for Asia and the Far East ECE Economic Commission for Europe ECLA Economic Commission for Latin America FAO Food and Agriculture Organization of the United Nations GATT General Agreement on Tariffs and Trade ILO International Labour Organisation OECD Organization for Economic Co-operation and Development UNCTAD United Nations Conference on Trade and Development UNDP United Nations Development Programme UNESCO United Nations Educational, Scientific and Cultural Organization UNIDO United Nations Industrial Development Organization

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IV INTRODUCTION The present report, the first annual report of the Industrial Development Board of the United Nations Industrial Development Organization is submitted to the General Assembly in accordance with Assembly resolution'2152 (XXI) of 17 November 1966. The Board adopted the present report at its 39th meeting, on 5 May 1967. The report cove.rs the fi:st session of the Industrial Development Board, which was held at Umted NatlOns Headquarters from 10 April to 5 May 1967.

Chapter I

ORGANIZATION OF THE SESSION

1. The Industrial Development Board opened its sian Soviet Socialist Republic, Cambodia, Ceylon, Chad, first session at United Nations Headquarters, New China, Congo (Brazzaville), Congo (Democratic Re­ York, on 10 April 1967. public of), Cyprus, Denmark, Dominican Republic, 2. Mr. 1. H. Abdel-Rahman, Executive Director of Ecuador, El Salvador, Gabon, Greece, Hungary, Ice­ the United Nations Industrial Development Organiza­ land, Iraq, Israel, Jamaica, Laos, Lebanon, Liberia, tion (UNIDO), acting as President pending the Libya, Malaysia, Malta, Mauritania, Mexico, Mongolia, election of the President of the Board, opened the Morocco, Nepal, New Zealand, Niger, Norway, session. Panama, Poland, Portugal, Senegal, South Africa, Syria, Togo, Tunisia, Ukrainian Soviet Socialist Re­ 3. A message from the Secretary-General, who was public, United Republic of Tanzania, Upper Volta and away from Headquarters, was read by the Executive Yugoslavia. Director.l In his message the Secretary-General noted that the first session of the Board marked an important 6. The Department of Economic and Social Affairs milestone in the development of the United Nations of the United Nations Secretariat, the Economic Com­ and expressed the conviction that the establishment of mission for Africa (ECA), the U nitecl Nations Con­ UNIDO would give a new dimension to development ference on Trade and Development (UNCTAD), the efforts. The Secretary-General did not regard industrial­ United Nations Development Programme (UNDP) ization as an aim in itself. It was primarily an instru­ and the World Food Programme (WFP) were repre­ ment for spearheading economic growth, which should sented at the session. provide a basis for the development of the human 7. The following specialized agencies were repre­ potential in the developing countries that had remained sented at the session: the International Labour Or­ largely dormant. By extending to all peoples the pro­ ganisation (ILO), the Food and Agriculture Organiza­ digious possibilities opened up by the industrial revolu­ tion of the United Nations (FAO), the United tion, it would contribute in a powerful manner to .t:Tations Educational, Scientific and Cultural Organiza­ improving conditions of political and economic equilib­ tiOn (UNESCO), the World Health Organization rium throughout the world. (WHO), the International Bank for Reconstruction and Development (IBRD), the International Monetary MEMBERSHIP AND ATTENDANCE Fund (IMF) and the Inter-Governmental Maritime Consultative Organization (1 MCO). The International 4. The following members of the Board were repre­ Atol~ic Energy Agency (IAEA) and the Contracting sented at the session: Argentina, Austria, Belgium, Parties to the General Agreement on Tariffs and Brazil, Bulgaria, Cameroon, Canada, Chile, Colombia, Trade (GATT) also sent representatives. III Cuba, Czechoslovakia, Federal Republic of Germany, Finland, France, Ghana, Guinea, India, Indonesia, 8. The International Chamber of Commerce, the Iran, Italy, Ivary Coast, Japan, Jordan, Kuwait, World Federation of Trade Unions and the United In­ Netherlands, Nigeria, Pakistan, Peru, Philippines, Ro­ ternational Bureaux for the Protection of Intellectual mania, Rwanda, Somalia, Spain, Sudan, Sweden, Property were also represented at the session. Switzerland, Thailand, Trinidad and Tobago, Turkey, Union of Soviet Socialist Republics, United Arab ELECTION OF OFFICERS Republic, United Kingdom of Great Britain and North­ 9. At its 1st meeting, on 10 April 1967, the Board ern Ireland, United States of America, Uruguay, and elected by acclamation the following officers for its Zambia. first session: 5. The following States Members of the United President: Mr. Moraiwid M. Tell (Jordan); Nations sent observers to the first session of the Board: Vice-Presidents: Dr. Dan Dumitrescu (Romania); Algeria, Australia, Bolivia, Botswana, Burma, Byelorus- Dr. J. H. Lllbbers (Netherlands); Mr. Eduardo Brad­ ley (Argentina); 1 For the full text of the Secretary-General's message, see annex V. RapportMtY: Mr. Mbaye Cheik Omar (Guinea). 1 CREDENTIALS 3. Adoption of the agenda. 10. At its 6th meeting, on 13 April, the Board, at 4. Rules of procedure. the President's suggestion, authorized its officers to 5. Co-ordination of activities of the United Nations examine the credentials ·of delegations of Member system of organizations in the field of industrial States attending its first session. Acting under that development. authorization, the officers of the Board examined the 6. Future programme of work and activities of the credentials and, having found them in good and due United Nations Industrial Development Or­ form, reported accordingly to the Board, which ap­ ganization. proved their report. 7. International Symposium on Industrial Develop­ AGENDA ment. 8. Report on the establishment of the headquarters 11. A number of delegations voiced cntIcIsm be­ of the United Nations Industrial Development caUSe {)f the belated distribution of certain documents Organization. in their working languages. The Board, therefore, decided at its 1st meeting that in order to allow in­ 9. Organizational matters, including the structure terested delegations adequate time for study {)f the and functions of the secretariat. questions at issue, item 5 of the provisional agenda 10. Financial questions. would be subdivided as follows: "Co-ordination of 11. Review of activities of the United Nations activities of the United Nations system of organizations system of organizations in the field of industrial in the field of industrial development" and "Review development. of activities of the United Nations system of organiza­ 12. Other business. tions in the field of industrial development". Item 7 of 13. Adoption of the report of the Board to the the provisional agenda, dealing with the programme of twenty-second session of the General Assembly. special industrial services, was deleted, it being decided that its subject-matter would be discussed under items ORGANIZATION OF WORK 5 and 6. The Board also decided to add two new items 13. At its 2nd meeting the Board set up a Sessional ] to the agenda, one entitled "Organizational matters.. Committee to study items 4, 5 and 6. Before referring including the structure and functions of the secretariat", item 6 to the Sessional Committee, however, the Board and the other "Financial questions". decided that that item would be taken up in plenary 12. In accordance with recommendations made by session and discussed in the general debate. The Com­ the group of twenty-five countries elected from lists A mittee unanim{)usly elected Mr. Jan Muzik (Czecho­ and C, and subject to the amendments indicated above, slovakia) as Chairman and Dr. Mohamed Warsama the Board at its 2nd meeting, on 10 April, adopted the (Somalia) as Vice-Chairman and Rapporteur. The re­ f{)llowing agenda (ID/B/1/Rev.!): sults of the Committee's proceedings regarding the 1. Opening of the session. three items are reflected in chapters Il, V and VII 2. Election of officers. below.

" Chapter II

RULES OF PROCEDURE

14. After holding five meetings, the Sessional Com­ information in order to enable the Board to take action mittee completed its review of the ntles of procedure in this respect. 11 and submitted its report (ID/B/16).2 19. The Board, after having adopted all other rules \ 15. The Board considered this report at its 24th of procedure as recommended by the Sessional Com­ and 25th meetings, on 29 April 1967. mittee, considered rules 18 and 19 of the draft rules of procedure (IDJB/2), which had not been approved 16. The Vice-Chairman and Rapporteur of the Ses­ by the Sessional Committee. sional Committee introduced the report. 20. After a procedural debate, the Board adopted 17. In considering rule 45 of the ntles of procedure rule 18 by a roll-call vote of 41 to none. The voting the Board agreed that it would be desirable to avoid was as follows: general debates and that it should decide at the In favour: Argentina, Austria, Belgium, Brazil, beginning of each session whether or not to have a Bulgaria, Cameroon, Canada, Chile, Colombia, Cuba, general debate. Czechoslovakia, Federal Republic of Germany, Finland, 18. The Board, when considering rules 75 and 76, France, Guinea, I ndia, Indonesia, Iran, Italy, Ivary requested the secretariat to furnish a list of the inter­ Coa~t, Japan, Jordan, Kuwait, Netherlands, Nigeria, i governmental and non-governmental organizations Pa1Ivory Coast and Uruguay stated that they were not among Coast, Japan, Netherlands, Spain, Sweden, Switzerland, the sponsors of the alternative text of rule 19 of the United Kingdom of Great Britain and Northern Ireland, rules of procedure that had been adopted by the Board. United States of America, Uruguay. 25. The rules of procedure as adopted by the Board Abstention: Turkey. are printed separately (ID/B/18).

Chapter III ESTABLISHMENT OF THE HEADQUARTERS OF THE UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION

26. The Industrial Development Board considered structed in the complex and would be made available to this question at its 3rd and 4th meetings, on 11 April the organization as soon as technically feasible. 1967. 30. As for the provisional headquarters, Mr. Bob­ 27. The Board had before it a progress report by the 1eter reiterated that the Republic of Austria agreed to Executive Director of UNIDO concerning the establish­ put at the disposal of UNIDO, at its own expense, the ment of the headquarters (IDIB /6), the draft agree­ necessary office accommodation and conference facilities. ment between the United Nations and the Republic The cost of the necessary adaptation, installation of of Austria (ID/B/6/Add.1), and a report on negotia­ utilities and modifications which might be required, tions for an exchange of notes relating to the draft including the cost of rental, would be borne by the agreement (ID/B/6/Add.2 and Add.3). Austrian Government. Mr. Bobleter felt that annex 28. The Under-Secretary of State for Foreign Af­ II to document ID/B/6 created the erroneus impression fairs of Austria, Mr. Carl Bobleter, in his address to that, for temporary accommodation, UNIDO would the Board,B said that it was an honour for the Austrian have to split up its operation in various buildings scat­ Government that the General Assembly, in its resolution tered throughout the City of Vienna. He wished to 2212 (XXI), had chosen Vienna as the headquarters correct that impression and informed the Board that, for UNIDO. He felt that his country, as a neutral subsequent to the publishing of the document referred State in the heart of Europe, provided all the prere­ to, the Austrian Government had decided to construct quisites of an international meeting place. He was happy close to the Felderhaus, which was to be the main to announce to the Board that, subject to their approval UNIDO office, all office building to the specifications of the arrangements, UNIDO could be installed in of UNIDO which could be enlarged as the need arose. temporary headquarters at Vienna during the summer This office building would be available by autumn 1967. of 1967. The Austrian Government had also provided additional 29. Regarding the permanent headquarters for space in the Imperial Palace for document services. UNIDO, Mr. Bobleter stated that preliminary calcula­ This arrangement was considered particularly suitable tions indicated that the construction costs of the United in view of the fact that future meetings of ·the Industrial Nations Centre in Danube Park, consisting of the head­ Development Board would probably be held in the quarters buildings for UNIDO and IAEA would be same area of the Imperial Palace, at the International roughly $US 25 million. The cost involved was to be Conference Centre. In these circumstances the space borne entirely by the Austrian Government. The build­ in the Vienna Rathaus, mentioned in document ID/B/6, ings, which would remain the property of the Republic would only be used to provide space for archives. of Austria, would be leased to the United Nations for 31. Mr. Bobleter stated that the Austrian Govern­ ninety-nine years for a nominal rent of one Austrian ment was taking steps to provide the necessary housing schilling per year. In addition to the headquarters build­ and schooling facilities for UNIDO staff. Satisfactory ings of UNIDO and IAEA, it was the intention of the negotiations had taken place wi th officials of the Amer­ Austrian Government to erect at the same location an ican, British and French schools in Vienna in order international conference centre which would be at the to secure the acceptance of the children of UNIDO staff disposal of these two organizations and spacious enough members. Also available in Vienna was a Russian­ for large-scale international conferences. The UNIDO language school, and the Austrian school, of course, headquarters buildings would be the first to be con- would be open to the children of UNIDO staff. 32. Referring to the draft agreement between the B For the full text Mr. Bobleter's address, see annex III.D. United Nations and the Republic of Austria, Mr. Bob- 3 1eter informed the Board that the Government of pressed satisfaction at the successful conclusion of Austria was prepared to accord privileges and im­ negotiations on the headquarters agreement which had munities exceeding by far those laid down in the Con­ been undertaken by the Secretary-General with repre­ vention on the Privileges and Immunities of the United sentatives of the Government of Austria. Nations. He stated that the negotiations for an ex­ 35. A representative welcomed the promptness with change of notes had been satisfactorily completed and which that Government had made the necessary arrange­ that the Austrian Government would take steps for ments to speed up the transfer of UNIDO to Vienna. the ratification of the agreement immediately after the That transfer should be made as quickly as possible, consideration by the Board of the item on the establish­ he said, so as to keep down expenses as much as pos­ ment of UNIDO headquarters, sible. Since the Government of Austria intended to 33. The Legal Counsel of the United Nations made establish a United Nations Centre in Vienna, the a statement to the Board (IDjBj15) on the draft Board's sessions should, as a rule, be held at UNIDO headquarters agreement. He said that negotiations on headquarters. Sessions might, of course, in certain the exchange of notes had been completed the day circumstances be held in other countries, provided that before, and that the full text of the notes would shortly the host Government bore the additional costs involved. be made available to the Board. He pointed out that In view of the fact that the great majority of organiza­ the draft agreement was complementary to the Con­ tions with which UNIDO would co-operate were es­ vention on the Privileges and Immunities of the United tablished outside New York, he felt that the UNIDO Nations adopted by the General Assembly, to which liaison group at New York should consist of only five Austria was a party. It regulated questions not en­ or six persons. visaged in the Convention arising as a result of the 36. At its fourth meeting, the Board decided unan­ establishment of the UNIDO headquarters at Vienna. imously to include in its report the following para­ These included such questions as control and protection graph which was proposed by the representative of the of the headquarters; radio and other facilities and Philippines: "The United Nations Industrial Develop­ public services at the headquarters; provisions to ensure ment Board considered the report of the Executive the right of transit to the headquarters on the part of Director of UNIDO on the establishment of UNIDO representatives of States, officials and experts on mis­ headquarters contained in document I DjBj6, including sion for UNIDO, and representatives of organizations its annexes, and endorsed with approval the arrange­ and information media. The agreement, in short, defined ments therein". I the privileges and immunities of all such persons in 37. The Board authorized its President to address Austria, as well as those of UNIDO. The Legal Counsel a note of appreciation to the Government of Austria paid a tribute to the representatives of the Austrian for its offer of facilities enabling UNIDO to establish Government with whom the draft agreement had been its headquarters at Vienna (see annex IILe.). 1 negotiated for their co]'dial co-operation and good 38. In thanking Board members for their kind will. remarks, the representative of Austria reiterated the i 34. In the discussion that followed, a number of determination of his Government to support every effort members of the Board expressed their appreciation of of UNIDO to bridge the gap between the industrially the Austrian Government's generous offer to put at developed countries of the north and the developing the disposal of UNIDO, at the expense of the Austrian countries of the south. Government, the necessary buildings for the permanent 39. The President concluded the consideration of the headquarters of UNIDO M Vienna, as well as tem­ item by expressing the sense of the Board that it ap­ porary facilities pending the completion of the per­ proved the report of the Executive Director on the manent headquarters. Some of these members also ex- establishment of the headquarters of UNIDO.

II ! Chapter IV GENERAL DEBATE

40. The general debate opened with a statement by countries. In the industrial world, there was now the Executive Director of UNIDO,4 who said that the considerable concern about the polarization of tech­ first session of the Board marked a new and most en­ nology which had accompanied the rapid increase in couraging beginning for the United Nations efforts to industrial production during recent years. By promoting promote accelerated industrialization, and that it would the technological advancement of the less developed be laying the groundwork and the basic guidelines for countries, international co-operation could do much to the activities of UNIDO in pursuance of the purposes change that picture. Similarly, because of the extent of set out by the General Assembly. The organization was their markets and the size of their operations, the large not a goal in itself but an instrument for action, and international corporations were in a particularly privi­ success in creating the machinery should not obscure leged position to contribute to the over-all expansion the goals or detract from efforts to develop it and use of industrial technology and production. The develop­ it effectively. ing countries, for their part, were making every effort 41. The Executive Director also said that UNIDO to enlarge their markets and explore the advantages could enhance its ability to serve as a bridge between of joint regional or subregional industrial undertakings. the developing countries and the industrially advanced Increasing attention should be paid to multinational and ~ For the full text of the Executive Director's statement. regional approaches. Larger markets offered such ad­ see annex VI. vantages as mobility of labour and capital, the removal 4 of artificial obstacles and the establishment of joint regular programme of technical assistance, and projects research facilities. Those factors could contribute sig­ undertaken by the Special Fund component of UNDP nificantly to speeding up industrial development. were shown in table 6 of document ID/B/3/Add.2. 42. Statements were made by members of the Board Those dDcuments gave all the necessary particulars with a view to providing general policy guidelines to of project costs. Where the programme of special in­ the secretariat. It was pointed out that UNIDO should dustrial services was concerned, a separate document be able to profit from the experience and the successes (ID/B/7) showed contributions made and projects of other organizations. Although UNIDO resources approved as of 1 February 1967. However, the secre­ were limited, this should not prevent it from functioning tariat would produce a single document containing as effectively as possible. more details in a summary presentation. 48. With respect to the projects proposed for 1968 43. One delegation felt that the three weeks' time­ programme~ limit for the first session of the Board was rather in­ the Executive Director stated that the adequate and some thought that it would be a mistake under the Technical Assistance component of UNDP to set a strict time-limit if the first session was to had already been approved, and information on them produce the fruitful results rightly expected of it. could be supplied to the Board. Projects under the regular programme were under preparation by the coun­ 44. It was mentioned that documents submitted to tries, and the whole programme would be approved the Board contained large numbers of statistics, but in June. Special Fund projects would be approved at the information in the documents did not convey easily the next sessions of the Governing Council of UNDP, an over-all picture of the operations of UNIDO. Many in June 1967 and January 1968. No information was delegations expressed the view that the secretariat at present available concerning the 1%8 projects under should prepare documents summarizing the data neces­ the programme of special industrial services, as the sary for the Board's work in order to facilitate proper number of projects and their cost could not be deter­ examination and evaluation. One delegation felt that mined until the requests of the countries were received. the Centre for Industrial Development had been sub­ jected to outside pressure in the process of staffing 49. The Executive Director said that programme and had suffered the adverse effects of "nepotism and budgeting had. already been the subject of research, favouritism". Now that UNIDO had been created, such which would be continued. The Committee for Pro­ pressure must be stopped, no matter where it came gramme and Co-ordination would be meeting shortly from, if the organization was to achieve its obj ectives. and could, if the Board so desired, be requested to 45. A broad majority agreed that UNIDO should consider the problems which progranune budgeting devote the larger part of its programme to operational for pNIDO would entail. Whatever was done, the activities and should reduce its research to the Executive Director wanted the Board to bear in mind barest minimum, keeping in mind that such research the time factor, since the United Nations regular budget should be geared to action. At the same time, 7stimates were usually prepared in June and approved many delegations stated that research should not be In December. Account must be taken of those deadlines overlooked by UNIDO but should be encouraged as an in preparing the programme of work of UNIDO for action-oriented tool for solving the problems and en­ 1968, and therefore in the calendar of meetings of the hancing the objectives of UNIDO in operational ac­ Board. tivities. In this connexion, the secretariat was asked 50. The Executive Director said that, although the to prepare a detailed programme of work in ·the -field programme of special industrial services was dealt for 1967 and 1968, at the same time indicating the with in a separate document, there was nothing unusual cost of those activities and the sources from which they about the procedures that were followed. Requests under are to be financed. Furthermore, the activities should the Programme were considered by the secretariat and be subdivided into industrial areas. UNDP Resident Representatives and, after being ap­ proved, were processed in the ·same way as ·other ·re­ 46. The Board also requested the Executive Director quests for assistance. to prepare appropriate documentation on the future or­ ganization and structure of the staff and a list of 51. The Executive Director explained that there present staff by grades and nationality broken down was no watertight division between the activities of the into temporary and permanent staff. Some delegations, technical and documents services and those of the referring to the programme of work for 1967, noted oper.a~iona1 services. In fact, all the permanent staff that many of what were described as operational field partlclpated in operational activities in a variety of activities were merely technical assistance projects ways. which did not owe much to the existence of UNIDO. It 52. In regard to remarks that had been made about was also felt that the services enumerated in chapter nepotism and favouritism, the Executive Director felt II of the Executive Director's report on the activities Sure that there was no bad intention, but noted that and programme of work of UNIDO (ID/B/4) were such remarks had been made in the discussion. too general to have much operational meaning as far 53. Some delegations stated that documents ID/B/3 as decision-making effects in the field were concerned. and ID/B/4 submitted by the secretariat were a com­ The same criticism was made of the proposal to mendable effort to assist the Board in its task of draw­ produce manuals on techniques. ing up a programme for the future activities of UNIDO. 47. The Executive Director pointed out that the Many delegations believed that the Board should not !ources of funds for industrial development services by only approve programmes for 1967-1968 but that it the Centre were shown in table 1 of document ID/BI should also formulate directives which would have 3/Add.2. Details of the 1967 industrial projects pro­ continuing validity. grammed under the Technical Assistance component of 54. It was stated that the fundamental purpose of UNDP, broken down by region, country and category the developing countries in calling for the establishment were given in table 1 of document ID/B/4. Table 2 of UNIDO had been to defend their independence, for of the same document related to projects under the as long as a country could not use its natural resources 5 and raw materials for the benefit of its own people, its 59. Other delegations believed that in carrying out independence could not be called complete. For that the activities of UNIDO it should be borne in mind reason it was felt that the most urgent task of UNIDO that industrialization was a process of economic de­ was that set forth in General Assembly resolution 2152 velopment in which a growing part of the national re­ (XXI), section Il, 'Paragraph ~ (a ~ (viii). Accordingly, sources is mobilized to develop a technically up-to-date it was argued that 1U formulatmg Its work programme, diversified domestic economic structure characterized UNIDO should give preference to activities which by a dynamic manufacturing sector having and produc­ I would promote the exploitation and efficient use of ing means of production and consumer goods and ~ natural resources, industrial raw materials, by-products capable of assuring a high rate of growth for the ~ and consumer products of developing countries. The economy as a whole and of achieving economic and opinion was expressed that such industries, beca,":se of social progress. their greater leverage effects, were the best basl's for 60. The report on the activities and programme of healthy economic development since they utilized and work of UNIDO placed, in the view of some delega­ I trained a substantial part of the available manpower. tions, a most unsatisfactory emphasis on consumer in­ 55. It was stated that the new facilities placed at dustries and on small-scale industries. It was stated the disposal of the developing countries by the more that generators and steel struotures of all types played advanced countries through this new form of inter­ a similar role in the process of industrial development national co-operation meant in essence the transfer of when, in fact, this was not the case. This problem was technology from industrialized to less developed areas. particularly serious since, for many countries with small The majority of the Board had visualized UNIDO as domestic markets, the development of these two types a fully fledged specialized agency enjoying complete of industries must be considered on a regional scale. autonomy and assured of enough resources to undertake It was suggested that in the future the reports of its responsibilities efficiently, as clearly set down in UNIDO should deal with basic industries such as steel General Assembly resolution 2152 (XXI) and state­ in separate chapters from those dealing specifically with ments made by developing countries. In this connexion, the development of equipment industries in developing some delegations expressed concern that those hopes had countries. been dashed as a result of the pressure applied by 61. Some delegations felt that efforts should be 1 certain developed countries and by other specialized concentrated on providing direct and indirect assistance agencies. to dynamic programmes geared towards the solution I 56. Some delegations believed that it was essential of basic development problems and to the implementa­ that the capacity of other United Nations organs and tion of suitable planning and programming techniques agencies should continue to be fully utilized in the ~sing statistical data. In this connexion, several delega­ 1 I field of industrial development. They added that co­ tlOns stated that there should be a harmonious blending operation between UNIDO and those organizations of headquarters activities with activities which could I was indispensable. usefully be decentralized, and that a proper balance between operational and research activities should be 57. Some delegations felt that it would seem more maintained. appropriate for UNIDO to concentrate its efforts on settling a few meaningful items capable of being im­ 62. Some delegations believed that another important mediately tackled by using existing resources at the factor for expeditious industrialization was the active disposal of the Board in such a way as to permit their participation of the State in the economic life of a gradual expansion in the future when, hopefully, addi­ country. Hence the state sector should be promoted tional means would be available. They thought that by by UNIDO and state agencies created so that the concentrating at the outset on only a few areas of the nation as a whole would benefit through rapid in­ broad field of action of UNIDO, the Board would be in dustrialization, while at the same time the various a much better position to draw a rigid line, as some branches of industry should be given equal weight. Lack representatives had indicated, between the past activities of funds quite often prompted developing countries to of the Centre for Industrial Development and the new seek additional resources in the form of foreign capital. life of the organization. The gradualistic approach Experience had shown, however, that foreign capital, rather than the comprehensive one would better serve both public and private, could speed development only the aims of resolution 2152 (XXI), the broad mandate if it was geared to national development plans. But it of which need not necessarily be tackled from all angles must not be tied to political conditions detrimental to at one time. Many delegations favoured concentrating the economy or the sovereignty and the national dignity on a programme of work limited in scope, but specific­ of the recipient country. Other delegations maintained ally and rigidly within the basic purposes of the or­ that state planning through United Nations bodies as gani:ation. Thus, in drawing up the programme, em­ a means of promoting economic development left much phasIs ~hould always be placed upon the promotion of to be desired. They advocated that "indicative" or mdustnal development. "recommendatory" planning rather than directive plan­ ning should be applied. 5~. Som7 delegations thought that the task of pro­ motl?&, a~ncultural development and increasing pro­ 63. At the same time, another view was that while ductIVIty 111 the primary sector of the economy of less UNIDO could not be expected to provide the billions develop111g countries was not one of the main ob jectives of dollars required to build the various industrial com­ of UNIDO. They pointed out that FAO had been plexes needed by developing countries, it could and must established for this purpose many years before UNIDO help to create the conditions which would make private and had a!ready achieved by 1962-1963 a tot<11 budget investment possible along with public. One delegation of approxImately $30 million, a sum which they felt was opposed to private investment, believing that all supporters of UNIDO were looking forward wist­ UNIDO assistance should be channelled solely towards fully to attaining for its programme of work. the public sector. 6 64. Still other delegations maintained that, while countries to obtain the foreign exchange necessary UNIDO had hitherto devoted considerable attention to pay for imports they require to sustain their own to light industry, the emphasis should be shifted to the industrialization. Other delegations, however, pointed development of heavy industry and manufacturing in­ out that decisions on industrial policies had to be taken dustry. Currently, among the numerous industrial pro­ at three levels, namely, the country level, the sub­ jects, sixty-five were concerned with light industry regional level and the regional level. It was stated whereas only forty-nine were related to the manufactur­ that the Board should direct UNIDO to ascertain the ing industry. priority requirements of Member States, especially de­ 65. Some delegations stressed the idea of integrated veloping countries, and should then draw up a short area planning, the technique for which consists of list of the most urgent projects to be included in a micro-economic planning applied to a particular area programme of work. The Board might request the or province and which is used to define a scheme based Executive Director to make a study of the subject on the total resources of an area. The end result and report to it at its next session. Such a study should emerges as a number of carefully located industries, cover the establishment of regional offices for industrial serviced by a network of both feeder and secondary planning, programming and services connected with the installations which take care of raw materials, replace­ promotion and acceleration of regional development, ment items from screws to complicated components, along the lines of the Asian Industrial Development manufactures from processed raw materials for export Council; local consulting bureaux which could draw from the region, right down to plans catering for the upon the regional offices for information, advice and increased purchasing power of those to whom the whole services, to be applied at the national or local level, project will give employment. And the whole is planned could be set up later. with social considerations in mind. 70. Some delegations stressed the need to maintain 66. Most delegations thought that in the future the a balance between the industrial and agricultural sectors. work programme of UNIDO should be action-oriented Others suggested that the social aspects of industrializa­ and based essentially on specific requests from Govern­ tion should be studied and taken into account when ments. The programme for 1967 and 1968 should also planning and implementing programmes, especially take account of the recommendations made by the projects of industrialization. three regional symposia and should be sufficiently 71. In this connexion, a number of delegations em­ flexible to allow the incorporation of any recommenda­ phasized the crucial role which development banks and tions made by the forthcoming International Symposium other industrial finance institutions played in industrial on Industrial Development. It was pointed out that development and urged UNIDO to pay special attention UNIDO should bear in mind the degree of development to these institutions in its work programme. In this between developing countries when formulating pro­ context, it was considered desirable that there should grammes and setting up priorities with appropriate be closer co-operation between UNIDO and these attention to regional or subregional needs. finance institutions. 67. In view of the advantages of subregional special­ 72. Some delegations felt that the operational ac­ ization, it was suggested that UNIDO might wish to tivities should cover the preparation of industrial pro­ give priority to industries which would complement and jeots, including technical and economic feasibility support existing industries. Import substitution in­ studies; assistance in the formulation of industrial dustries and export industries could be located in development programmes in developing countries; pro­ growth areas where the subsequent establishment of motion of the regional integration of industrialization, industrial complexes would be possible. starting from specific industrial projects in each country of the region; assisting the developing countries to 68. It was pointed out that during coming sessions obtain external financing for specific industrial projects, the Board should try to formulate a long-term plan, and providing them with information on the terms and perhaps covering four years. More resources should be conditions of the various financing sources; advising devoted to missions which would result in new requests the financing agencies on the technical and economic from Governments and new projects. Thorough studies soundness of the projects submitted for financing; of­ must be made of each project, including its budgetary fering advice and guidance on problems relating to the implications. There was also a need for more abstract exploitation and use of natural resources, industrial raw and more basic research in the field of industrial materials and by-products; assistance in the training promotion. of managerial, technical and other qualified personnel 69. Many delegations believed that it was up to the in co-operation with the specialized agencies concerned; developing countries to take the initiative in formulating and assistance to development institutions and ad­ specific projects for action. One of the delegations sug­ ministrations of developing countries in industrial tech­ gested that UNIDO should be able to assist developing nology, production, programming and planning, as countries in formulating priorities for their national well as the transfer of technical knowledge and ex­ development in the industrial field, priorities which perience. were more than likely to achieve early results and, 73. The organization should also give attention to to this end, special attention should be given to three the implementation and follow-up of industrial pro­ areas: (a) industries designed to assist in the moderni­ grammes and projects. Failure to achieve satisfactory zation of agriculture-industries producing basic agri­ implementation had frequently resulted in failure to cultural inputs such as fertilizers and pesticides, tractors achieve development targets. and other implements, as well as other industries pro­ cessing agricultural commodities, taking into account 74. Some delegations felt that some of the so-called the social effects of industrialization; (b) basic con­ operational activities listed in the Executive Director's sumer industries, a category which overlaps in part report-(ID/B/4) assignment of experts to give advice, with agro-industries; (c) export-oriented industries to produce reports or to bring older reports up to which are essentially aimed at helping the developing date-did not represent the kind of action envisaged 7 by the developing countries. Moreover, in establishing activity in the different regions and utilizing existing the priorities for the programme of research 1U the resources in the most productive way. future, the Executive Director should avoid undertaking 81. The export of manufactures presented for de­ projects in those areas where UNIDO could draw veloping countries different problems of technology on the studies in hand in other parts of the United and structure depending on whether such exports were Nations and in other international organizations. mainly oriented towards the markets of industrialized 75. In the opinion of the overwhelming majority, countries or those of other developing countries. The the programme must have a dearly defined purpose: technologies available to developing countries favoured, to solve the key problems of industrialization, while in general, the production of manufactured goods for maintaining a proper balance between operational and export to other developing countries. Thus, it was supporting research activities. important to verify when and how it was preferable 76. Many delegations stated that research should for developing countries to promote exports of manufac­ not be overlooked by UNIDO but that it should be tures to other developing countries and when and how I encouraged as an action-oriented tool for solving the countries should utilize more elaborate technologies in problems and enhancing the objectives of UNIDO in order to export. One delegation expressed the wish that, " operational activities. They also differed with some in concert with certain other United Nations organiza­ delegations who tried to lay down for all developing tions, UNIDO should contribute to the creation of countries a standard unified scheme of industrialization regional markets which would constitute the primary limi,ted to certain kinds of industries. The national natural outlets for many products of industrialization. J resources of the developing countries were vast and 82. Some delegations wished to distinguish service­ diversified and they ehould be scientifically and econo­ generating industries from industries which contributed 1 mically exploited, either by heavy or light industries as less to productive employment in the service sector. In the case might be, for the benefit of the peoples, and this particular field, UNIDO should play an important according to their circumstances and demands. role in pointing out those industries which tended to r 77. Some delegations thought that industrial de­ generate indirectly higher levels of employment in the velopment strategies should emphasize the following: service sector. I (a) the relative priorities in the establishment of 83. Many delegations stated that the programme capital goods and consumer goods industries; (b) the of special industrial services had proved valuable in relations between industrialization determined by im­ providing direct and prompt assistance to Governments. port substitution and industrialization determined ex­ They pointed to the need for revision of the philosophy clusively by diversification of the economic structure of the programme in order to make it really effective on the basis of the local patterns of resources distribu­ and meaningful. tion; (c) the relation between centres of industrial 84. Some delegations suggested that pilot projects growth which developed on the basis of external eco­ would be helpful in speeding up industrialization and nomies initially oriented to the development of exports that they constituted a useful area for action by of primary commodities and industrial centres based UNIDO. on external economies oriented towards integration of 85. Some delegations felt that UNIDO should be the development of different sectors of the economy; organized like a firm of consultants, where technicians (d) the export of manufactures to industrialized coun­ were recruited as necessary but did not figure perma­ tries and to developing countries; (e) the relation be­ nently on the organizational chart. tween industrialization in depth and extended industrial­ 86. Some delegations expressed the view that ization; (t) the relation between service-generating UNIDO should abandon hidebound methods of recruit­ industries and industries which contribute less to the ment. What it needed was highly skilled administrators, increase of productive employment in the service sector. planners and experts and a limited number of tech­ 78. Some delegations felt it important that UNIDO nologists and engineers at headquarters to guide its should conduct research in order to make explicit as work. In the course of the debate, some delegations ex­ many implications as possible of such different strategies pressed a belief in the principle of equitable geographic in order to guide industrial development programmers distribution but others felt that this principle should and planners in the developing countries. 110t be applied at the expense of efficiency and integrity 79. Developing countries should be made aware of and that the Executive Director should have enough the significance of strategies emphasizing import sub­ scope, flexibility and independence to discharge the stitution. Industrialization strategies that emphasized heavy responsibilities which would ,be entrusted to diversification on the basis of an efficient use of the local UNIDO by the Board. Accordingly, having regard to pattern of resources by permitting lower costs could the opinions stated above, the most important task create competitive conditions for the export of such at the current session would be to ensure that the manufactures and contribute to an increase in the stan­ structure and personnel of UNIDO were equal to all dard of living of the population as a whole. the demands that would be made of them. 80. It was stated that economies which had con­ 87. The Executive Director, replying to the com­ centrated on the export of primary commodities tended ments, said that he had noted the two suggestions on to formulate industrialization strategies on the basis the co-ordination function of UNIDO. He added that of the external economies established with reference the reason why more information had not been in­ to such exports. This practice might not necessarily cluded in document ID/B/3 was that the Board had contribute to the establishment of manufacturing areas not then decided on the form the reports on activities which fully benefited from the pattern of human and should take and what additional information should be other resources within the economy. It might be more included in order to facilitate consideration of the appropriate to study resource distribution as thoroughly problem of co-ordination. as possible in order to develop industrial centres capable 88. The "tentative target establishment" had been of playing a more effective role in integrating economic transmitted to the Controller two months ago and it 8 corresponded to the aim UNIDO had se~ itself, n~~:ly, to examine that important question with a view to to be an organization devoted to operatlOnal activities. making available, direct to UNIDO, substantial funds In this connexion he drew attention to table 2 of from which it could finance its own operational ac­ document ID/B/L.4, which showed the number of tivities. experts employed in 1967 in the various fields of in­ 93. The majority of the members of the Board dustrial development by geographical regions and reiterated the need for a pledging conference for sources of funds. It was intended to send 469 experts voluntary contributions and expressed satisfaction at to eighty-five countries to work in the different fields the unanimity of view expressed in the debate by the of activity listed in table 3 of the same document. It developed and developing countries on the need for should be noted, furthermore, that the final figures making UNIDO more operational. It was argued that might be higher on account of the fact that the figures since UNIDO could not become more operational unless for the special industrial services programme would it had more funds for operational purposes, developed not be available until the end of 1967. It was intended countries should lend support to their declaration by to send twenty-five experts under the Technical As­ making voluntary financial contributions to UNIDO. sistance component of UNDP, seven under the regular Some developed countries stated that when UNIDO programme, fifteen under the programme of spec!al established its works programme they would decide to industrial services and three under UNDP (Special which sector they should make their contribution. Fund) projects already in progress. Who would choose 94. Many developing countries were concerned that those experts, determine their functions and read their UNIDO would be able to accomplish nothing unless reports? That would be done by the secretariat, specific­ it had the requisite funds, and hoped that the good ally by the staff of the Chemical Industries Unit. The will expressed by the industrialized countries would be same was true of the other activities. Altogether the manifested in substantial contributions. projects to be carried out required 469 experts. A total 95. Some delegations suggested that UNIDO would of 215 fellowships would be offered for advanced train­ have to play a leading role not only by providing tech­ ing in a very wide range of subjects. To handle all nical assistance and assistance in pre-investment fields the work of organization and co-ordination, the profes­ but also by building a bridge, as it were, to investment sional staff numbered only seventy-five, as shown in proper. annex I to document ID/B/4. 96. Many delegations agreed with the Executive 89. Again taking the Chemical Industries Unit as an Director that the complexity and multiplicity of sources example, the Executive Director noted that five profes­ and channels through which the operational activities sional staff members would deal with the work of had to be cleared were the real cause of the organiza­ fifty experts in the field, service fifteen special industrial tion's difficulties. It was pointed out that as a result of services projects and supervise the execution of three the policies pursued by the developed countries, the Special Fund projects already in progress. In other trickle of financial resources for operational activities respects they would also have to conduct and supervise was unfortunately channelled through a multiplicity other studies, prepare documentation relating to the of pipelines and the specialized agencies were seeking agenda item on the chemical industries for the Inter­ jealously to retain the functions in the industrial field national Symposium on Industrial Development and, that they had acquired prior to the creation of the from time to time, participate in field missions. Centre for Industrial Development and UNIDO. 90. Many delegations, basing themselves on the ex­ 97. Many delegations pointed to the need for draw­ perience of some of the developing countries, spoke on ing up programme budgeting so that efficient use would the necessity of having an efficient, international, special­ be made of the scarce resources. Whenever UNIDO ized consultative body which could render the necessary formulated its work programme it should be accom­ advice and technical information in the various stages panied by financial implications and there should be a of planning, programming, project evaluation, con­ clear indication of how these would permit total in­ tracting, designing, marketing, standardization, etc., tegration of programmes and budgets. In this con­ and which could harmonize and co-ordinate the various nexion, delegations recalled General Assembly resolu­ types of co-operation to the benefit of all concerned. tion 1797 (XVII) and the recommendations of the 91. It was suggested that the Executive Director Ad Hoc Committee of Experts to Examine the Finances should draw up both a short-term and a medium-term of the United Nations and the Specialized Agencies. work programme, with financial implications, and that 98. Many delegations believed that the effectiveness the Board should consider this plan at a special session of UNIDO would be enhanced if provision were made to be held before the twenty-second session of the for flexibility in its regular budget, so that the Executive General Assembly. Another proposal was that the Director could transfer funds from one activity to Board should have a permanent Executive Committee, another as needed, or could apply to urgent projects which would examine all proposals before they were the savings which would be realized when certain ac­ decided upon by the Board at its annual sessions. tivities were discontinued and which would otherwise 92. Many delegations suggested twofold action in simply revert to the United Nations budget in general. mobilizing financial resources needed for UNIDO. 99. Many delegations stressed that it was important First, ways and means must be found to ensure that a for UNIDO to establish effective contact with the Gov­ much larger proportion of the funds from the existing ernments of developing countries and to send expert sources, such as the regular programme, the Technical missions to the field when requested. As an example, Assistance component of UNDP and the Special Fund some delegations referred to the UNIDO mission to component of UNDP, should be allocated for the opera­ India which had formulated several projects for im­ tional activities of UNIDO. Secondly, since the canal­ plementation by UNIDO. izing of funds through other organizations inevitably 100. Many delegations were strongly of the opinion led to delays, and for other reasons it was suggested that that the staff and resources of UNIDO should not be the Board might consider the setting up of a Committee unduly concentrated at the headquarters in Vienna. 9 Therefore, as a first step, it :vas suggeste~ that U~IPO they should be ready to go from one country to another should assign its staff to regIOnal economlC .commlsslOns within those regions as their services were needed. and also to the offices of the UNDP Resldent Repre­ 102. One delegation stated that "co-ordination" sentatives in developing countries. Some delegatlOns meant the preparation of harmonized programmes. of attached importance to the appointment, 'Yithout. undue work covering periods of one to three years, dependmg delay, of a limited number of general mdustnal ad­ on the nature of the activity. A proper balance between visers-specificallyplanne~s--:-tot~e head9-uarters. of the headquarters activities and activities which could use­ regional economic comm~sslOns .m Afnca, ASla a~d fully he decentralized was of the greatest importance. Latin America. Such adVlsers mlght also be placed m 103. One delegation felt that the Board could not the ,offices of the Resident Representatives in a limited leave to the UNIDO secretariat the entire task of con­ number of carefully selected countries reflecting a cluding co-ordination agreements with other members variety of economic and industrial conditions. In this of the United Nations family, and pointed to the need connexion it was hoped that UNDP would be able to for the Board to consider such agreements before help finance such assignments, in addition to the assign­ finalization. ment of project managers in individual countries. 104. Several delegations thought that UNIDO 101. On the need for decentralization, many delega­ should ,try to achieve functional co-ordination within the tions stated there would naturally be a tendency among field of industrialization, as laid down in General the personnel at UNIDO headquarters to become in­ Assembly resolution 2152 (XXI). In this respect, it I volved in studies; yet it was generally agreed that was considered necessary to avoid conflict between the emphasis should be on operational activities. It was functional co-ordination to be promoted by UNIDO therefore suggested by many delegations that part of and the responsibilities for over-all co-ordination of the the staff should be permanently stationed in Africa, economic and social activities of the United Nations Asia and Latln America, where they could familiarize system which, under the Charter, were vested in the themselves with local customs and requirements, and Economic and Social Council.

Chapter V , FUTURE PROGRAMME OF WORK AND ACTIVITIES/)

105. The discussions on the future programme of 107. During the general debate on the future work, I! work began with a general debate, and statements were some delegations expressed the view that in 1967 made by delegations concerning the position of their UNIDO should limit its activity to improving the respective countries. Many of the statements contained special industrial services programme and should not other points related not only to the work programme embark on new activities until 1968. The Board would but also to matters of organization, financing and co­ have to work out a concise and realistic work pro­ ordination. These views are set forth in the respective gramme for the rest of 1967 and for 1968, using a sections of the report. The Executive Director stated practical approach. It was to be considered that funds that no document had been prepared by the secretariat allocated under the Special Fund and Technical As­ concerning the programme of work especially for 1967. sistance components of UNDP, as well as under the For 1967 and in part for 1968, projects were taken over 1967 and 1968 United Nations regular programmes, by UNIDO as previously approved. The programme of were already earmarked. Thus, only new projects to the Technical Assistance component of UNDP, for be financed under the programme of special industrial example, had already been formulated for 1967-1968 by services and those financed by extra-budgetary funds ~ the countries themselves through the customary proce­ could be envisaged when setting up future short-term I dures. The regular programme had also been formulated programmes of work. For the years following 1968 during 1966 for UNIDO operations in 1967. The a long-term work plan, based on programme budgeting, Special Fund projects entrusted to UNIDO were pro­ should be proposed by the Executive Director. The plan jects for which funds and working procedures had should be based on requests for assistance formulated already been determined. The only programme in which by the developing countries. UNIDO could undertake new, significant operations in 1967 would be the special industrial services. The 108. It was repeatedly stressed that in respect of existing situation was explained in documents IDIB13, industrial development, the main effort had to be made ID/B/4 and ID/B/7 and other documents. by the developing countries themselves. Those countries would have to mobilize their intellectual as well as their 106. Some delegations felt that it was difficult to financial resources. Several delegations also underlined examine the subject of future work in those rather the fact that UNIDO would have to play a part in the voluminous documents, which contained mainly a re­ , c~2itulation study of the social implications of industrialization. One of former work carried out by the Centre delegation stated that the developing countries repre­ for Industrial Development; they therefore requested sented two thirds of the world's population and con­ a summary of the projects of technical assistance in the tributed only 5 per cent to world industrial production, industrial field and the engagements for 1967 for all and that the target to be reached with UNIDO as­ programmes, as explained. sistance should be 10 per cent. /) Bearing in mind the importance of the programme of work 109. As to the future programme of activities itself, and activities of UNIDO, the Board decided that the Rap­ porteur should report extensively the different views expressed delegations emphasized that the ideal programme would with regard to the formulation of guidelines at the first be one wen balanced between operations and supporting sessioll of the Board. industrial research, based on natural, human and 10 financial resources. It was realized that a certain amount 112. Beyond what was stated in the debate, no ~on­ of research work of top-level quality was necessary to crete decisions were reached. The Board then deCIded prepare operational work. A research ,programme should to refer the question to the Sessional Committee. not, however, include academic or basic scientific re­ 113. At its meeting of 25 April 1967, the ~essional search, but rather feasibility studies leading to concrete Committee decided to discuss item 6 first. S1l1ce the projects. Delegations agreed that the future work of papers proposed by the various gr0l;lps of countries "Yere UNIDO must be essentially action-oriented. The or­ not official documents, the CommIttee further decIded ganization should assist requesting countries to define to consider them in informal discussions without sum­ their priorities, leaving them free to decide whether mary records, with a view to arriving at a compromise their ways of industrialization should be based on text. The Sessional Committee resumed its meetings private, public or mixed systems. Priority should also on I May 1967, It informed the Board that owing be given t9"assistance in the planning, formulation and to lack of time it had been unable to finalize its discus­ execution of action-oriented and sound projects, con­ sion and reach agreement on a draft resolution on centrated not only on a specific country, but with a agenda items 5 and 6 and had decided to transmit to regional approach. Importance was attached also to the Board for further consideration the various papers integrated area planning. UNIDO assistance, it was on those items, formal and informal, which it had suggested, should also concentrate on: before it. (a) Elaboration of agro-industrial and food-produc­ 114. In his oral report to the Board, the Chairman ing projects; of the Sessional Committee stated that at the second (b) Surveys of industrial priorities Cmetallurgy, of the two meetings held by the Committee on the two petrochemicals etc.) ; agenda items, it had been decided to continue the dis­ (c) Creation of consumer and export-oriented in­ cussion in an informal working group, because some informal proposals had been submitted and there had dustries j been a desire to avoid a general debate. It had been (cl) Facilitation of the flow of "know-how" and tech­ intended that the working group would give a first nical knowledge; reading to all the papers submitted by groups of ( e) Establishment of manufacturing and small-sCAile countries and would then refer them to a drafting industries; group. However, since many delegations had been (f) Creation of fertilizer, pesticide and other chemical unable to take part in the meetings, both of the Board plants; and of the informal working group, the latter had been (g) Utilization of new raw materials, liquefying gas, unable to complete its work, particularly since a time­ aluminium, paper pulp etc.; limit had been set for the submission of proposals. The Sessional Committee had therefore decided to (h) Advice with a view to increasing production inform the Board of the situation and to transmit to and marketing; it the papers and proposals which had been sub­ (i) Development of heavy industries; mitted, either as originally drafted or in their revised (j) Strengthening industrial development institutes; form. The following documents had been before the (k) Encouragement of regional co-operation for Committee: pooling resources of neighbouring countries; Ca) Two papers submitted by the developing coun­ (l) Organization of symposia, workshops and se­ tries; minars for the training of local management and other Cb) A paper submitted by certain Western and personnel; other countries; (m) Assistance in obtaining financial help, including (c) A paper submitted by the socialist countries; help to industries facing temporary financial difficulties. Cd) A general statement which was later added to 110. Some delegations expressed the view that the two prepared by the developing countries; UNIDO should decentralize its activities and create ~ e) A paper containing a proposal by the Philippines regional offices which would act like consulting firms. Wlth the amalgamation into a single document of the It was also suggested that a new section for market two papers prepared by the developing countries and and capital research should be created within the the general statement, the Board had before it four secretariat. texts. The Chairman of the Sessional Committee stated 111. Regarding the staff needed to perform the tasks that the first reading had not been fruitless; it had with which UNIDO would be entrusted, some delega­ allowed some rapprochement of the views of delegations tions stressed that although geographical distribution and might help to solve the problem. should be duly taken into consideration, priority should 115. The Board decided at its 27th meeting that be given to the appointment of efficient operators, out­ the statement made by the Chairman as reflected in standing for their competence and expertise, and to the summary record should be included in the Board's advisers with managerial talents. The organization's report (see paragraph 114 above). staff should be placed where there was action, and not 116. At its 28th meeting the Board had before it the only at headquarters. It was suggested that part of the following three draft resolutions: staff should be detailed to regional or subregional offices if such should be created. Industrial development ad­ (a) A draft resolution submitted by the Ivory Coast visers would have to be attached to the United Nations and the Philippines (ID/B/L,ll) ; regional economic commissions as well as to UNDP (b) A draft resolution submitted by Jordan, Nigeria offices. It was hoped that "flying missions" would, and the Sudan (ID/B/L.17) ; whenever required, be detailed to requesting countries (c) A draft resolution submitted by Bulgaria for emergency help. Several countries offered the as­ Czechoslovakia and the USSR (ID/B/L.19). ' sistance of their nationals to be appointed in various The draft resolution submitted on 28 April by the technical assistance capacitielil. Ivory Coast and the Philippines read as follows; 11 The industrial Board, 2. Requests the Executive Director to organize the ac­ Recalling the provisions of General Assembly resolution tivities of UNIDO in accordance with the above principles and to expand further the operational action-oriented work 2152 (XXI), setting out the functions of UNIDO, of UNIDO through appropriate measures, including the Rcco{Jl~iEing that the acceleration of industrial develop­ following: ment is being accorded the highest priority by the develop­ Ca) The provision of assistance to the developing countries ing countries in their efforts to achieve economic and .social progress, in initiating and formulating programmes and projects of practical and immediate importance for the further develop­ Recallil~g that the role of UNIDO is to encourage the ment of their industries, with particular attention to the mobilization of national and international resources to assist areas of priority listed in the annex to this resolution; in, promote and accelerate the industrialization of the de­ Cb) Concerted efforts to improve the effectiveness, speed veloping countries, and flexibility of implementation of the field activities, in­ Bearing in mind that there is a need to formulate basic cluding the evaluation of requests, the recruitment of experts policy guidelines for effective action by UNIDO in assisting and other servicing aspects; the industrial development of the developing countries, Cc) The establishment of closer contacts with the de­ 1. Decides that the United Nations Industrial Development veloping countries through an increase in visits by UNIDO Organization shall carry out its activities, within the frame­ technical staff on specific missions related to the initiation work of the functions" set out in General Assembly resolution of field projects or the identification of needs in different 2152 (XXI), on the basis of the following principles; branches of industry; Ca) All activities of UNIDO shall be primarily action­ (d) The establishment of a network of contacts with the oriented in a manner directly relevant to the promotion of industrially advanced countries to build up a broad support industrial development in the developing countries and shall base for the implementation of technical assistance and field comprise field work, operational surveys, technical studies activities by mobilizing the technical know-how, the sources and promotional efforts; of specialized expertise, existing research and technology Cb) Direct field work will be carried out under pro­ laboratories and facilities and, generally, the industrial ex­ grammes financed from voluntary contributions and through perience of the advanced countries; such means as the provision of specialists and experts, 3. Authorizes the Executive Director to station in the fellowships, operational llersonnel and facilities related to the various regions an appropriate number of technical advisers establishment of industrial development centres, industrial with broad experience in the various aspects of industrializa­ research institutes, pilot and demonstration plants, technical tion, to serve as advisers to the Governments and to the training courses and seminars and other forms of assistance Resident Representatives in one or several developing coun­ required in connexion wi tll various aspects of industrialization tries. The industrial development advisers would be stationed and particularly the establishment of industrial plants and in a particular geographic area over several years so as to the expansion and improvement of existing production gain intimate knowledge of the needs and problems of the facilities; countries concerned and help them initiate action in respect Cc) Operational surveys such as feasibility and pre­ to industrial development projects; investment studies and individual surveys related to the 4. Requests the Executive Director to continue the im­ improvement of productivity in particular industrial plants plementation of the current programme of work with due or branches; these surveys may be carried out as appropriate consideration to the basic principles set forth in paragraph under the various programmes financed from voluntary con­ 1 above and in the understanding that priority will be given tributions or other sources, including the occasional as­ in 1967 to the requirements of the International Symposium signment of staff and consultants financed from the regular on Industrial Development; budget when their particular expertise meets the requirements of the proj ect ; 5. Further requests the Executive Director to submit to the Board at its second session a programme of work for­ (d) Technical studies shall be undertaken primarily with mulated on the basis of the principles established in this the purpose of making l1"eadily available to the developing resolution with detailed information on each project proposed countries the information and technical knowledge which including its estimated duration, cost, source of funds etc., they need for direct application towards their rapid industrial and accompanied by adequate information on the global development; they may also serve to provide technical budgetary requirements of UNIDO as well as comprehensive guidance for the implementation of the operational pro­ data about the operations financed from voluntary funds grammes of UNIDO with a view to increasing their ef­ and the United Nations regular programme of technical ficiency and effectiveness; assistance. C~) The promotional efforts of UNIDO should be directed primarily to identifying the opportunities and needs of in­ ANNEX dustrialization in the developing countries and the possibilities of meeting them by means available to UNIDO, other United Areas of priority Nations agencies, international organizations and "govern­ mental as well as non-governmental entities in the industrially Without prejudice to the other activities of UNIDO, and advanced countries; particularly field work undertaken at the direct request of Governments, the Industrial Development Board considers Ct) In the carrying out of operational surveys or tech­ that adequate priority should be given to the provision of nical studies mentioned under (c) and (d) above, due assistance along the following lines: attention should be paid to existing research and work produced by independent academic and professional bodies 1. Formulation of specific industrial plans and prggrammes dealing with industrialization problems; UNIDO should based on an assessment of the country's resources, manpower make efforts to utilize such outside research work and, and other pertinent factors; whenever appropriate, to encourage the production by 2. Initiation of industrial development projects and assista~~ outside bodies of research and studies required for a better in carrying forward the necessary action, on a continuing and understanding of the processes of industrialization; systematic basis, throughout the various stages of their im­ plementation; (g) In connexion with the promotional efforts mentioned under (d) above, UNIDO shall establish appropriate ma­ 3. Development of basic sectors of industry such as iron chinery for the collection and dissemination of information and steel, cement, metal-working and engineering industries, concerning industrialization and issue the necessary publica­ textiles, building materials, pulp and paper, food processing, tions, bulletins and periodicals aimed at keeping those dealing agricultural equipment, transport eqtlipment etc., on a scale with industrialization in the developing and the developed suitable to the country's resource endowment and requirements; countries informed of the current developments in the field 4. Preparation of technical and economic feasibility studies in different countries and the various branches of industry; and the execution and evaluation of specific industrial projects; 12 5. Assistance in obtaining financing for specific industrial search in areas which the experience of its opera­ projects, including additional financing for the expansion and tional activities would indicate to be fruitful. UNIDO improvement of existing industrial plants; may also undertake useful compilations and indexing 6. Development of export-oriented industries and the im­ of relevant information, classifications of conclusions plementation of policy measures designed to promote exports derived from comparative studies of actual cases, and , of manufactures and semi-manufactures from developing coun­ the periodic evaluation of industrial trends, especially tries; in the developing world to measure achievements and 1 identify important industrial develoIJment problems; 1 7. Assistance in the expansion and improvement of existing industrial capacity through appropriate measures designed to (iii) Seminars and workshops should be undertaken in increase their efficiency and .operations; response to clear needs and after adequate prepara­ 8. Assistance in the establishment of pilot plants, demon­ tion. Documentation preparatory to, and resulting f stration factories and other industrial facilities of an experi­ from, such seminars and workshops should consist of mental character; short and clear papers which can be used to guide 9. Assistance in the establishment of industrial development similar discussions and study groups in developing centres to promote and implement national programmes of in­ countries. Such documentation should be as up-to-date dustrialization; as possible and made available promptly in order to be of the maximum value; 10. Assistance in establishment of appropriate industrial research facilities and testing laboratories required for the in­ (d) A more dynamic approach should be increasingly built dustrialization effort; into the operational programmes of UNIDO. These pro­ grammes should serve as a basis for field activities which may i, 11. Assistance in the training of technical and managerial provide the leverage for much larger undertakings wit11in personnel for industry. the promotional role of UNIDO; <. The draft resolution submitted on 1 May by Jordan, (e) The operational activities of UNIDO as hereunder Nigeria and the Sudan (ID/B/L.!?) reads as follows: elaborated should be widely publici2ed and brought specifically 1 The Industrial Development Board, to the attention of Governments of developing countries in Recalling the provisions of General Assembly resolution order to assist them in formulating their requests under the I 2152 (XXI), operational programme of UNIDO in the immediate future: Recognizing that the work programme of UNIDO has to (i) Assistance in carrying out comprehensive general be geared to the best possible implementation of its functions surveys of industrial development possibilities in as set forth in paragraph 2 of section IT of resolution 2152 individual countries jects in co-operation with the regard to the projects listed in the annex to the Um,ted NatIOns regIonal economic commissions in draft resolution, he felt that the Board should have Afnca, Asia and Latin America and the United Nations more information from the secretariat before deciding Economic and Social Office in Beirut". whether to delete or defer them. He stated that in the 148. The representative of the Philippines sug­ case of one of the projects, an ad hoc committee had gested that the sponsors of the three drafts should already been convened in preparation for an interna­ make an effort to produce a common text. The repre­ tional conference. Under another, assistance was made sentatives of Czechoslovakia and the USSR supported available only at the request of countries, and twenty the Philippine proposal and agreed to enter into requests had already been made. consultation. 139. The representative of Somalia endorsed the 149. The representative of Somalia proposed a num­ suggestion of the Executive Director that the words ber of amendments (IDIB/L.24) to draft resolution "Assistance to" in paragraph 2 (e), item (xi), should ID/B/L.17, as follows: be replaced by "Co-operation with". He felt that the 1. In the second preambular paragraph insert the words "function~" Board should be provided with comprehensive observa­ "purpose and" before the word and delete the words "paragraph 2 of section II of", s~ that the para­ tions on each of the projects proposed for deletion or graph would read: deferment. "Recognizing that the work programme of UNIDO 140. The representative of Switzerland supported has to be geared to the best possible implementation of its the Canadian amendment to paragraph 2 (f). purpose and functions as set forth in resolution 2152 141. The representative of Romania pointed out (XXI),". that paragraph 2 (c), item (xiii), of draft resolution 2. In operative paragraph 1, insert the word "primarily" ID/B/L.17 contained less detail than section Il. para­ after the word "functions". graph 2 (a) (iv), of General Assembly resolution 2152 3. In operative paragraph 1, insert the words "promotionaL (XXI). He stated that the delegation of Romania and" before the words "operational activities". fully supported draft resolution ID/B/L.19 and also 4. In operative paragraph 2: 17 Su/r,paragraph (a) should read as follows: "Operational made ,by members, including the Czechoslovak amend­ activities, whether financed from... should be decided only ments (IDjBjL.23). Commenting on the Somali pro­ at the request of Governments". posal that reference be made in the preamble to the Sub-paragraph (b) should read as follows: "Measures purpose of UNIDO, the Nigerian representative stated will be taken to expedite the implementation of projects that in view of the controversy which had already arisen already approved under UNDP, the regular programme of on that subject in the ad hoc committee, the sponsors technical assistance and the programme of special industrial preferred to leave the preamble unchanged. services, as well as such requests as may be forthcoming ~, during 1967 and 1968". 155. The Nigerian representative stated that there , Add a new sub-paragraph (c), as follows: "Expand the had been some divergence of views among the sponsors operational activities of UNIDO through the establishment concerning the proposed amendments to operative para­ of closer and direct contacts with the developing countries graph 1, but it had been decided to leave that para­ and having better aocess to the experience and knowledge graph unchanged. The present wording should not be of the advanced countries". interpreted as being in any way restrictive. The amend­ S. In operative paragraph 2 (c): ment to former operative paragraph 2 (a) proposed by In sub-paragraph (i), insert the words "purpose and" Somalia had been adopted with one slight change in before the words "functions of UNIDO". the wording, as the sponsors felt that the former word­ In sub-paragraph (ii), insert the words "the development ing of the paragraph tended to be too restrictive with of additional areas of operation and" before the words "the regard to the functions of the Executive Director. Al­ formulation of", in the first sentence. though requests of Governments should be the primary In sub-paragraph (Hi), substitute the words "studies and consideration in the initiation of operational activities, it material" for the words "short and clear papers". should be recognized that the Executive Director might 6. Operative paragraph 2, sub-parag'raph (d), should read: also take the initiative in giving general advice in the "A more dynamic approach should be increasingly built into early stages. Former operative paragraph 2 (a) had the programme of UNIDO in such a way that the field activities may provide a leverage for much larger under­ thus been amended to read as follows: takings within the promotional role of UNIDO; while "Operational activities of UNIDO, whether fi­ promotional activities in turn may lead to the expansion nanced from contributions made directly to it or and greater effectiveness of studies and field operations". undertaken through participation in UNDP or by 7. Delete sub-paragraph (xi) of operative paragraph 2 (c). the utilization of the appropriate resources of the 8. In operative paragraph 2 (c) (xiv), sub-paragraph c United Nations regular programme of technical as­ should read: "Technological applied research and industrial sistance or under the programme of special industrial information". services, should be undertaken only at the request 9. In operative paragraph 2 (c), sub-paragraph (xvi) of Governments". should read: "Assistance in establishing pilot plants, ex­ 156. Former operative paragraph 2 (b) had been perimental factories and supply of industrial inputs otherwise unavailable to initiate industries which are likely to mature completely reworded, as the old form had been some­ quickly". what peremptory in tone. It now read as fonows: 10. Operative paragraph 4 should read: "RCqllcsts the "Measures should be taken to expedite the im­ Executive Director to continue the implementation of the plementation of projects already approved under current programme of work for 1967 and to prepare the UNDP, the regular programme of technical as­ programme for 1968 with due consideration to the principles sistance and the programme of special industrial set forth in this resolution". services, as well as such requests as may be forth­ 150. The representative of Nigeria said that, follow­ coming during 1967 and 1968". ing informal consultations, the sponsors of draft resolu­ 157. A new operative paragraph 2 (c) had been tion ID/B/L.17 had been able to accept a number of added, so that the subsequent sub-paragraphs had now the amendments suggested by various delegations, and become (d), (e), (f) and (g). The new paragraph 2 the texts would be circulated as soon as possible. (c) read as follows: ) 151. The representative of Czechoslovakia noted that "The operational activities of UNIDO should be since the sponsors of draft resolution ID/B/L.17 had expanded through the establishment of closer and di­ been unwilling to enter into informal consultations, his rect contacts with the developing countries and of delegation had had to submit certain amendments in better access to the experience and knowledge of the J writing to the secretariat (ID/B/L.23). He hoped that advanced countries". his delegation, like other delegations, would have an 158. The Nigerian representative stated that it had ~ opportunity to introduce those amendments orally. not been possible to accept any of the suggested amend­ ! 152. The representative of Jordan said that since ments to operative paragraph 2 (d) concerning the earlier efforts to reach agreement in informal consulta­ research activities of UNIDO, owing to the existence tion had failed, the sponsors had felt that no useful of various shades of opinion among the sponsors of the purpose would be served by holding further informal draft resolution. In accordance with the wishes of the consultations. other delegations, operative paragraph 2 (e) had been amended to read as follows: 153. At the 30th meeting of the Board, the repre­ "A more dynamic approach should be increasingly sentative of the USSR introduced draft resolution ID/ built into the programme of UNIDO in such a way B/L.19 on behalf of the sponsors. that the field activities may provide a leverage for 154. At the 31st meeting of the Board, the repre­ much larger undertakings within the promotional role sentative of Nigeria, speaking on behalf of the sponsors of UNIDO; while promotional activities in turn will of draft resolution ID/B/L.17, said that the sponsors lead to the expansion and greater effectiveness of had introduced a number of changes in the text of the studies and field operations". draft resolution. These changes were based mainly on 159. For purposes of emphasis, in operative para­ the amendments submitted by Somalia (ID/B1L.24). graph 2 (f) (v), the words "by giving guidance in the The sponsors had taken into accOlmt all the suggestions preparation of requests, by providing information" had 18 been changed to read: "by giving guidance in the pre­ 4. In operative paragraph 1, delete the words "in order paration of specific requests, including information". to fulfil its purpose as set out in General Assembly 160. Former operative paragraph 2 (e) (xi) had resolution 2152 (XXI)" and substitute the following: been recast as new operative paragraph 2 (h) which "... the main role of UNIDO has to be its promo­ tional role consisting in particular of encouraging read as follows: the building up of productive industrial forces of "UNIDO should co-operate with the United the developing countries and assisting them, through Nations regional economic commissions in Africa, operational activi ties, in making full use of their Asia and Latin America and the United Nations own resources and of the help that may be or become Economic and Social Office in Beirut in the elabora­ available from external resources. UNIDO should tion and/or implementation of national or multina­ become a kind of central co-operative pool through which it is possible to draw on the reserves of tional programmes and projects within the framework experience, technical knowledge and tangible re­ of regional and subregional economic groupings sources of all coun tries." among those countries, where such groups exist". 5. Insert the following words in operative paragraph 2 161. The sponsors of draft resolution ID/B/L.l7 after the words "Executive Director": had followed the suggestion made by the representative "when preparing the draft programme of work of the United States at the 28th meeting of the Board for 1968, 1969 and subsequent years, to develop and had substituted for the two foot-notes a new oper­ gradually the central role of UNIDO in the field ative paragraph 2 (i) worded as follows: of industrial development and". 6. In operative paragraph 2 (c) (H) insert the words "As appropriate, assistance should be undertaken "of UNIDO" after the words "Research activities". pursuant to the provisions for co-ordination and co­ 7. In paragraph 2 (d) add the following words at the operation. contained in General Assembly resolution end of the paragraph: "particularly in the development 2152 (XI)". of basic and manufacturing industries". 162. The Nigerian representative stated that the 8. After operative paragraph 2 (e) (ii) insert new sub­ sponsors had accepted the amplified version of former paragraph (iii) as follows: operative paragraph 2 (e) (XVI) which, as new oper­ "Assistance in identifying those branches of in­ ative paragraph 2 (t) (XV), now read as follows: dustry in which it is of paramount importance that the public sector of the economy should be developed "Assistance in esta:blishing pilot plants, experi­ in order to ensure that industrialization will really mental factories and supply of industrial inputs other­ be accelerated and will serve the purposes of the wise unavailable to initiate industries which are likely nation as a whole". to mature quickly". Renumber subsequent sub-paragraphs. Operative paragraph 4 had been reworded as follows: 9. Delete the end of operative paragraph 2 (e) (iii), "Approves the programme of work contained in after the word "possibilities", and substitl1te the follow­ ing: "and in the planning, evaluation and practical document ID/B/4, subject to such changes as may execution of specific industrial projects". be deemed appropriate by the Executive Director 10. Insert a new sub-paragraph after the old operative in the light of the guidelines indicated in paragraph paragraph 2 (e) (iv) to read as follows: 2 above". "Assistance in formulating recommendations for 163. The Nigerian representative stated that the the more accelerated accumulation and use of purpose of the draft resolution was to list some of the domestic resources of the developing countries with points on which the Board had reached agreement a view to channelling them into industrial develOp­ during its three weeks of work, to serve as guidelines ment". for the Executive Director. He stated that it was not 11. Insert a new sub-paragraph (vii) reading as follows: "Assistance in attracting aid to the developing intended to be conclusive or all-embracing, and some countries frol11 abroad, having due regard to national changes could perhaps be made at the resumed session interests and in observance of the principle of in­ of the Board. alienable sovereignty over natural resources, for 164. The representative of Czechoslovakia introduced the execution of proj ects". the following amendments (IDIB /L.23) to draft re­ 12. Renumber old sub-paragraphs (v) and (vi) as (viii) solution ID/B/L.l7: and (ix), and delete the cnd of old sub-paragraph (vi) 1. Replace the first paragraph of the preamble by the starting with the words "preparation of invitations,". following: 13. Delete the end of old sub-paragraph (vii) starting "Recalling that in accordance with paragraph 1 of with the words "the recruitment of competent manage­ section II of General Assembly resolution 2152 ment". (XXI) the purpose of UNIDO shall be to promote 14. In old sub-paragraph (x), insert after the words industrial development, in accordance with Article 1, "training of" the following: "national administrative, paragraph 3, and Articles SS and 56 of the Charter managerial and other highly qualified personnel and of the United Nations and by encouraging the mobili­ of" and add at the end of the paragraph the follow­ zation of national and international resources to ing words: "and in such form of training as manage­ assist in, promote and accelerate the industrializa­ ment workshops, in-plant training of engineers and tion of the developing countries, with particular intermediate level technicians etc., using the services emphasis on the manufacturing sector". of specialists of any country and enlisting the co­ 2. Replace the second paragraph of the preamble by the operation of other interested organizations in the following: United Nations system". "Recognizing that the work programme of IS. In old sub-paragraph (xi), replace the words "to UNIDO has to be oriented towards the fulfilment United Nations regional economic commissions in of the purpose and tasks set out in General Assembly Africa, Asia and Latin America" by "in co-operation resolution 2152 (XXI)". with United Nations regional economic commissions". 3. Insert a new third paragraph of the preamble, reading 16. After old sub-paragraph (xii) insert the following as follows: "Believing that UNIDO should become a genuine new sub-paragraph: instrument of international co-operation in industrial "Assistance in promoting study, application and development". dissemination in all countries irrespective of their 19 "

· economic and social systems and their stage of they had not been reproduced in the Czechoslovak '··.'·1.···"" development, of experience ~ail1ed, particu~arly in amendments (ID/B/L.23). I industrially developed countrIes, ~Y. carrYlllg. out 173. The representative of Finland asked th.e sp?n­ ·1 investigations and surveys of condltlons and sltua­ tions and technological levels in various sectors of sal's of draft resolution ID/B/L.l7 whether, 10 Vlew \ I industry and of indus~y as a whole". of what had been said about the importance of the Eco­ nomic Commission for Europe, they would agree to 17. In old sub-paragraph (xiv) replace the word "national" I by "governmental". delete the words "of Africa, Asia and Latin America" from the new version of operative paragraph 2 (h). 18. After paragraph 3 (d) (Hi) I add a sub-paragraph (iv) 1 reading as follows: .. 174. At its 32nd meeting, the Board had before it, "Gain a clear picture on the level achIeved ~11. t.he in addition to draft resolution ID/B/L.l7, an unofficial \ co-ordination of all industrial development actIvItIes paper indicating the amendments acceptable to the within the framework of the United Nations, its sponsors and the amen~ments submitted by the deleg~­ \ specialized agencies and UNCTAD". tions of Czechoslovakla (ID/B/L.23) and Somalia 165. The representative of t~e. Philippines sai~ that, (ID/B/L.24). J in view of the short time remaInIng for the conSidera­ 175. The representative of Czechoslovakia, consider­ , tion of draft resolutions, his delegation and that of ing suggestions made by several delegations, wished to the hory Coast intended to withdraw the draft resolu­ revise the eighteenth Czechoslovak amendment, so that I tion which they had submitted jointly (ID/B/L.ll). the last part would read: ".. , the United Nations, its He stated that the Philippine delegation would vote ~or \ specialized agencies, IAEA, UNDP, UNCTAD and j draft resolution ID/B/L.17 with the amendments whIch GATT". the sponsors had already accepted. confir~ed 176. He also explained that the "productive in­ 166. The representative of Czechoslovakia dustrial forces" referred to in the fourth amendment in that draft resolution ID/B/L.19 had not been With­ document ID/B/L.23 meant all the factors necessary drawn and replaced by the Czechoslovak amendments for industrial production-raw materials, machinery, (ID/B/L.23) to draft resolution ID/B/L.17. manpower, financial resources and so forth. 167. The representative of Somalia stated that, .on 177. At the 35th meeting of the Board, the repre­ the understanding that the sponsors of draft resolutIOn sentative of Nigeria introduced a revised text of the ID/B/L.17 would reconsider their position on ~he first draft resolution (ID/B/L.l7/Rev.l), which had been three Somali amendments (ID/B/L.24), whIch had agreed upon by an informal group comprising the not been accepted, he would be ready to withdraw docu­ sponsors of draft resolution ID/B/L.l7 and those ment ID/B/L.24. With regard to the second amend­ p~si­ delegations which had proposed major amendments. ment, he proposed that a compromise between his The revised draft resolution submitted by Jordan, tion and that of the sponsors could be reached by usmg Nigeria and the Sudan read as follows: the word "essentially" instead of "primarily". The Industrial Development Board, 168. The representative of Czechoslovakia said that Recalling the provisions of General Assembly resolution if draft resolution ID/B/L.l7 was voted on paragrap.h 2152 (XXI), j by paragraph, he would request separate votes on IllS Recognizing that the work programme of UNIDO has to , amendments. be geared to the fulfilment of its purpose and the best 169. The representative of Cameroon proposed that possible implementation of its functions as set forth in in the new operative paragraph 2 (h) of draft resolu­ General Assembly resolution 2152 (XXI), tion ID/B/L.l7 the words "and regional and sub­ 1. Decides that UNIDO shall carry out its functions regional economic groupings" shoul~ ~e ~nserted after primarily on the basis of meeting the urgent needs of the the word "Beirut", and the words WithIn the frame­ developing countries in accelerating their industrial develop­ ( work of regional and subregional economic groupi?g,~ ment through promotional and operational activities supported ~ among those countries, where such groups eXist by relevant research; , 2. Requests the Executive Director to exercise his re­ deleted. sponsibilities in accordance with the following guidelines: 170. The Nigerian representative accepted the Came­ (a) Operational activities of UNIDO, whether financed roonian amendment on behalf of the sponsors. from contributions made directly to it or undertaken through 171. The representative of Kuwait recalled that on participalion in UNDP or by the utilization of the appropriate resources of the United Nations regular programme of the basis of a proposal by his delegation at the 29th technical assistance or under the programme of special in­ meeting, the repre!lentative of Jord~n had sl1gges~ed dustrial services, should be undertaken only at the request of that in the report the draft resolutIOn should be 1l1­ Governments; troduced by a paragraph stating, inter alia, that the ( b) Measures should be undertaken to expedite the im­ Executive Director, in exercising hi"" responsibilities, plementation of projects already approved under UNDP, should take due account of the recommendations of the the regular programme of technical assistance and the pro­ regional symposia and the International Symposium on gramme of special industrial services, as well as such Industrial Development and that the Board would re­ requests as may be forthcoming during 1967 and 1968; view periodically the guidelines contained in the reso­ (c) Operational activities of UNIDO should be expanded lution. through the establishment of doser and direct contacts with the developing countries and of better access to the ex­ 172. The representative of Belgium said that the perience and knowledge of the advanced countries; Board was seeking to devise temporary guidelines for (d) Research activities of UNIDO a5 provided for in a relatively short period, four or five years at the paragraph 2 (b) of General Assembly resolution 2152 (XXI) most and, as the representative of Kuwait had pointed should be based on the following considerations: out, 'they would be reviewed periodically. He stated (i) Action-oriented studies and research programme! of that draft resolution ID/B/L.17 should therefore be UNIDO should be designed especially to facilitate viewed in that perspective. He also stated that some the undertaking of operational activitie5 which result of the provisions of draft resolution ID/B/L.19 were from requests from the developing countries in the valuable and should be taken into consideration, though framework of the functions of UNIDO. Research 20 - activities undertaken by UNIDO should also be (vii) Advising at the various stages of implementation directed to achieving improved effectiveness of opera­ and follow-up of industrial projects, including the tional activities. It is, furthermore, recognized that preparation of detailed project reports or their certain types of studies and surveys have an important evaluation, selection of processes, technologies and role both in the analysis and evaluation of the ex­ machinery and equipment, preparation of invitations perience gained in the field and in the determination for tenders, evaluation of tenders, supervision of of the proper direction of future operational assistance construction work, and commissioning and testing activities; of industrial plants; (ii) Research activities of UNIDO which do not neces­ (viii) Assistance in achieving the efficient utilization of sarily have an immediate and direct supporting role new and existing industrial capacity in developing in relation to operational activities can, nevertheless, countries; in particular, help in all phases of pro­ serve useful longer-range development needs such duction, including the solution of technical and as the formulation of alternative industrial develop­ technological problems, improvement and control of ment strategies. In such cases UNIDO should, quality, the recruitment of competent management wherever possible, draw on appropriate work of and its surveillance to ensure high performance; other institutions, and, as necessary, encourage them (ix) Assistance in developing and improving marlceting to undertake such research in areas which the ex­ and distribution techniques and in providing solu­ perience of its operational ,activities would indicate tions for marketing and distribution problems of to be fruitful. UNIDO may also undertake useful specific industrial products; compilations and indexing of relevant information, classifications of conclusions derived from comparative (x) Assistance in the development of export-oriented industry and in the solution of its particular prob­ studies of actual cases, and the periodic evaluation of lems; industrial trends, especially in the developing world, to measure achievements and identify important in­ (xi) Assistance in the training of technical and other dustrial development problems; appropriate categories of personnel, specificaJly in (iii) Seminars and workshops should be undertaken in relation to particular existing or planned industries, including such forms of training as management response to clear needs and after adequate prepara­ workshops, in-plant training etc., using the services tion. Documentation preparatory to, and resulting of specialists of both the developed and developing from such seminars and workshops should consist countries; of short and clear papers which can be used to guide similar discussions and study groups in developing (xii) Assistance in promoting co-operation among devel­ countries. Such documentation should be as up-to-date oping countries on programmes and projects of in­ as possible and made available promptly in order to dustrial development and in developing export po­ be of the maximum value; tential; (e) A more dynamic approach should be increasingly (xiii) Assistance in the dissemination, for the developing built into the programme of UNIDO in such a way that countries, of information on technological innova­ the field activities may provide a leverage for much larger tions originating in various countries, assistance in undertakings within the promotional role of the organization. the implementation of practical measures for the Promotional activities in turn should lead to the expansion application of such information, the adaptation of and greater effectiveness of studies and field operations; existing teclmology and the development of new technology especially suited to the particular physi­ (f) The operational activities of UNIDO as hereunder cal, social and economic conditions of developing elaborated should be widely ,publicized and brought specifically countries through the establishment and improve­ the attention of Governments of developing countries in to ment, itlter alia, of technological research centres order to assist them in formulating their requests under in these countries; the operational programme of UNIDO in the immediate future: (xiv) Information and advice on the systems of patents, industrial property and know-how; (i) Assistance in carrying out comprehensive general surveys of industrial development possibilities in (xv) Assistance in establishing or strengthening national individual cotmtries or in groups of countries, e.g., and mul tinational institutions to deal with various in regions or subregions; aspects and problems of industrial development in such fields as : (ii) Assistance in the formulation of industrial develop­ ment plans and programmes and the determination a. Planning and programming; of priorities and the formulation of appropriate b. Project formulation and evaluation; policies, incentives and other measures in individual c. Engineering and design; countries or in groups of countries; d. Training, management and productivity; (iii) Assistance in identifying those branches of industry c. Technological applied research; which should be developed in order to ensure ac­ f. Standardization, quality control, weights and celerated industrialization and better standards of measures administration; living; g. Marketing and export promotion; (iv) Assistance in conducting pre-investment studies of h. Services to small-seale industry, including in­ specific industrial possibilities and the evaluation of dustrial estates; specific projects; i. Investment promotion; (v) Assistance in executing necessary detailed technical (xvi) Assistance on experimental proj ects designed: and economic feasibili ty studies to elaborate specific a. To adapt existing technology to the very different bankable projects and in the economic and financial factor endowments in the developing countries; planning and evaluation of specific projects including the identification of possible domestic resources; b. To investigate alternative possible new uses for local raw materials; and (vi) Assistance in obtaining external financing for spe­ c. To devise wherever possible, linkages between cific industrial projects, including additional financ­ ing for expansion and improvement of existing in­ various p;oducts and stages.of pr.ocessin.g which dustrial plants, by the giving of guidance in the may form the base for a Viable mdustnal com­ preparation of specific requests, including informa­ plex; tion on the terms and conditions of the various (xvii) Assistance in establishing p!l~t plants and expe.ri­ financing agencies, and by advice to financing mental factories and in obtammg the supply of m­ agencies on the technical and economic soundness dustrial inputs otherwise unavailable, to initiate of the projects submitted for financing; industries which are likely to mature quickly; 21 (xviii) Organization, as appropriate, of seminars and work­ word "promotional", as used in paragraph 2 (e), should shops on specific aspects and problems of industrial be defined. Much of the wording was taken from the development; Executive Director's introductory statement, and the (g) Assistance may be provided to Governments at their Board should not have difficulty in accepting the defini­ request in the preparation Df their prDj ects thrDugh apprD­ tion. The second sub-paragraph proposed by the Czecho­ priate means, including the sending Df field missions Dr slovak delegation concerned permanent sovereignty over experts. To this end, the secretariat shDuld urgently develop natural resources. As it had not been possible to formu­ the requisite technical capacity; late a wording satisfactory to all the groups, the (h) UNIDO should co-operate with the United Nations sponsors felt that the best solution would again be to regional economic commissions and the United Nations Eco­ nomic and Social Office in Beirut and assist the regional include the Czechoslovak text on the subj ect in the and subregional economic groupings at the request Df the Board's report. Governments concerned in the elaboration and/or imple­ 179. The representative of Jordan stated that his mentation of national or multinational programmes and delegation had not been present at the negotiations proj ects in the developing countries; which led to the revised text. He opposed the revised (i) As appropriate, assistance should be provided pursuant text, which he considered as a sell-out of the interests to the provisiDns for co-ordinatiDn and co-operation con­ of the developing countries, and wished to withdraw tained in General Assembly resolution 2152 (XXI); as a sponsor of the draft resolution. He also requested 3. Requests the Executive Director to present future work a separate roll-call vote on operative paragraph l. programmes

Chapter VI INTERNATIONAL SYMPOSIUM ON INDUSTRIAL DEVELOPMENT

209. The Board had before it a note by the Execu­ Symposium a success and that the meeting would be tive Director on the preparations being made for the held under appropriate conditions. One representative holding of the International Symposium on Industrial stated that the assurances given by the observer from Development (IDIB/S). This document also contained the host country had not dispelled his misgivings. the provisional agenda and the draft rules of procedure 214. A number of representatives reported that their for the Symposium which had been recommended by Governments had set up special national machinery to the Economic and Social Council in resolutions 1180 prepare for their participation in the Symposium and (XLI) and 1185 (XLI). were preparing a number of papers on various topics 210. At its twenty-first session, the General Assem­ for submission to the meeting. The recent visits of bly, on the recommendation of the Committee for Indus­ senior officials of UNIDO to a number of countries to trial Development and the Economic and Social Coun­ di,scuss their preparations were considered useful. cil, adopted resolution 2178 (XXI) in which it endorsed 215. Several delegations stressed the importance of the decision of the Economic and Social Council to the early distribution of Symposium documents, includ­ convene the International Symposium in Athens, ing the reports of the regional symposia. One delegation Greece, in December 1967, and noted with approval the requested that documents be distributed in large num­ recommendations of the Council concerning the pre­ bers to meet the needs of the interested parties in the paration and organization of the Symposium. The countries concerned, and another requested they be Assembly called upon UNIDO to devote all the neces­ made available in the working languages of the Sym­ sary attention to the preparatory work for the Sympo­ posium. sium in order to ensure its success, and requested the 216. A number of delegations supported the sug­ Industrial Development Board to study in due course gestion that the discussions and recommendations of the the recommendation of the Symposium and to take ap­ Symposium should provide a basis for the long-term propriate follow-up action. work programme of UNIDO, and one representative 211. In introducing this item of the agenda, the said that the follow-up action to the Symposium should Executive Director noted that the agreement between form a major part of the work of the organization in the United Nations and the Government of Greece re­ 1968. garding the Symposium had been signed on 14 April 217. Several representatives approved the existing 1967. In view of limitations on translation and reproduc­ provisional agenda in that it provided a forum for tion facilities, Governments were requested to submit discussion of differing views of the problems of indus­ summaries of papers presented which could be trans­ trialization. It was pointed out that the provisional lated into the working languages of the Symposium. agenda had been approved by the Economic and Social 212. During the discussion, representatives of the Council and the General Assembly, and had been for­ ILO, FAO, UNESCO, UNCTAD and GATT made mulated to correspond to the agenda of the regional statements. They indicated that their organizations' symposia. Several other representatives, however, con­ preparations for the Symposium had been made in close sidered that the discussions at the Symposium should be co-operation with UNIDO and gave information con­ practical, technical and action-oriented, and that the cerning the studies they were preparing for the meeting. existing provisional agenda was too vague and general 213. In the discussion that followed, the prepara­ and could lead to the elaboration of general proposi­ tions that had been made for the Symposium were gen­ tions which would not make any significant contribution erally approved, and appreciation was expressed to the to increasing industrialization. Several Governments Government of Greece for its offer to act as host for made suggestions for changing or limiting the agenda. the meeting. Two representatives suggested that the One representative suggested the following: Executive Director should concurrently prepare plans "1. An examination of the findings of the regional for holding the Symposium at another site-for exam­ symposia. ple, Geneva-should this become necessary in view of "2. A discussion of the technical and economic the present situation in the host country. The observer requirements for the establishment of a few basic from the host country assured the Board that his Gov­ industries such as iron and steel, food processing, ernment was doing everything possible to make the textiles, wood products and building materials. 25 "3. A discussion of the co-operative efforts neces­ import-substituting industries", from the Symposium sary to ensure the integration of the activities of in­ provisional agenda; another, the deletion of item 4 (b). ternational organizations and the national efforts of "External financing". It was also suggested that the re­ developing countries. port of the International Symposium should be trans­ "4. A definition of the specific tasks of UNIDO mitted to the session of the United Nations Conference in relation to other agencies already in the industrial on Trade and Development. field." 220. Regarding the draft rules of procedure for the It was suggested by other representatives that the re­ Symposium, some representatives objected to rule 4 port of the first session of the Industrial Development because it excluded the participation of certain impor­ Board should be considered by the Symposium, though tant countries and violated the principle of universality. this view was also opposed as inappropriate; that in­ One representative regarded rule 8 as conferring ex­ ternational agreements affecting trade in manufactures cessive powers on the President and thought it should such as the International Cotton Agreement ,should be be exercised only after consultation with the plenary discussed; and that the discussion 'should cover the pre­ session of the Symposium. One delegation suggested paration of inventories of natural resources in develop­ that there be no general statements, but that these ing countries and the prerequisite economic and social statements be submitted in writing and only summary structural changes necessary for industrial development statements be made. in developing countries. One delegation drew attention 221. Some Governments expressed the hope that the to the widening gap between the developed and develop­ Symposium would achieve useful results through con­ ing countries in industrial technology. He therefore pro­ sensus, rather than through resolutions, while others posed the inclusion of a subitem 1 (a) in the agenda, hoped that the Symposium would be held at a political entitled "Consequences of the technological competition level and would adopt specific recommendations on all for innovation and research among developed countries maj,or items that would be binding on Governments. on the industrialization of developing countries". In 222. Several delegations agreed on the need for the addition, it was requested that the memorandum distri­ delegations to the Symposium to include 'specialists for butedon this subject (ID/B/L.13) should be brought the discussions of the sectors. The developing countries to the attention of the Symposium as an official docu­ were requested by one representative to notify the Exe­ ment of the Board. The recommendations of the Asian cutive Director about the specialists they would be Industrial Development Council regarding items for sending to the Symposium so that the industrial coun­ discussion at the Symposium were recalled by .one rep­ tries could arrange to send matching experts. resentative. 223. It was suggested by one delegation that the 218. Several suggestions were made regarding the International Symposium should be followed by a industrial sectol'S to be discussed under item 2 of the ministerial conference on industrialization. provisional agenda. One representative suggested that the countries of each region should agree on several 224. The Executive Director indicated that the sug­ of the industries most important to the region which gestions which had been made during the Board's oould be discussed in committees of the Symposium. It discussion would be transmitted to the Symposium. was also suggested that the following industries should However, he noted that the provisional agenda and rules be included: electric power, fue!, petroleum, industries of procedure had already been approved by the ap­ based on agricultural wastes, local minerals and jute, propriate United Nations bodies. and that there should be a wider discussion of fertilizers 225. The Board recommended to the Symposium of all types. Several other delegations considered that the provisional agenda and draft rules of procedure as the list of sectors to be discussed shO-uld be restricted contained in the annexes to Economic and Social Coun­ to a few basic industries. Two delegations suggested cil resolutions 1180 (XLI) and 1185 (XLI), on the that the social aspects of industrial development should understanding that the reservations expressed by cer­ be considered. tain delegations would be reflected in the Board's re­ 219. Some misgivings were expressed in regard to port on its first session. the possible duplication of items to be discussed at the 226. At the request of some delegations, the Execu­ Symposium and at the second session of the United tive Director undertook to submit to the General As­ Nations Conference on Trade and Development. One sembly at its twenty-second session, for its information, delegation suggested the deletion of item 3 (g) "Promo­ an up-to-date account of the arrangements for the In­ tion of industrial exports and of export-oriented and ternational Symposium on Industrial Development.

Chapter VII

CO-ORDINATION OF ACTIVITIES OF THE UNITED NATIONS SYSTEM OF ORGANIZATIONS IN THE FIELD OF INDUSTRIAL DEVELOPMENT

227. This item was considered by the Board at its United Nations system of organizations (ID/B/3 and 12th to 15th meetings, from 19 to 21 April 1967, and Add.I-8) . by the Sessional Committee at its 6th and 7th meet­ 229. The Administrator of the United Nations De­ ings, held on 24 and 25 April 1967. velopment Programme made a statement (ID/E/L.5). 228. The Board had before it the second consolidated He explained that industrial development was a com­ report of the industrial development activities of the plex task, with interdependent and complementary 26 relationships to agriculture, education and social wel­ dustrial development, and UNIDO could be associated fare, which involved nearly every agency in the United in the already approved projects in order to strengthen Nations family providing assistance to developing na­ their industrial components. tions. He felt that interagency co-ordination was a mat­ 233. The representative of the ILO said that the ter for negotiation rather than legislation. The agen­ establishment of UNIDO had filled a gap in the inter­ cies of the United Nations had years of experience in national machinery by providing a framework within working together and each of them had acquired special which all agency activities could be properly filled. competence and real expertise in the process of indus­ Under General Assembly resolution 2152 (XXI), co­ trialization. UNDP had long felt the absence of a cen­ ordination between UNIDO and the specialized agen­ tral agency with over-all responsibility for industrializa­ cies was to be carried out at intergovernmental level. tion, and it looked forward to new initiatives by The Industrial Development Board, in giving the neces­ UNIDO in that important field, initiatives which would sary guidance to the Executive Director, would need not replace but would hopefully augment the existing to take into account the responsibilities of the Economic efforts of the specialized agencies. The Administrator and Social Council, particularly with respect to co­ referred in particular to pilot plants and to the sug­ ordination. For bilateral working arrangements, a formal gestion that UNDP would stimulate industrial invest­ agreement should be reached between UNIDO and the ment by joining with Governments and local authorities ILO to define as precisely as possible their mutual fields in contributing initial "inputs" of production prere­ of competence and to work out the practical modalities quisites for experimental industrial units. of co-operation and co-ordination, as had been effected 230. The Under-Secretary for Inter-Agency Affairs between the ILO and the Centre for Industrial Devel­ recalled with approval the statement of the Executive opment on vocational training and management devel­ Director that the development of specific procedures opment. Having reviewed the long-standing interest and machinery for co-ordination among the various of the ILO in the problems of industrial development, organizations should proceed gradually on the basis he observed that, in the light of past experience, a of cumulative experience derived from practical under­ strong co-ordinated machinery at the national level was takings of common interest. He stated that the Adminis­ vital if the activities of the various international bodies trative Committee on Co-ordination, at its recent ses­ were to be harmonized. The ILO would soon have sion, had attached great importance to the working out et strongly decentralized and regionalized structure, of adequate arrangements for interagency co-ordination whereby the technical field staff would be responsible at the secretariat level, pursuant to paragraph 34 .of for ensuring effective co-ordination with the regional, General Assembly resolution 2152 (XXI). It was un­ subregional and national bodies as well as with the derstood that the discussion on such arragements, al­ regional economic commissions and the Resident Repre­ ready initiated by the Executive Director of UNIDO, sentatives of UNDP. It would be most desirable for would be oriented in the light of the guidance which UNIDO representatives at regional and national levels the Industrial Development Board would provide at to work together with the ILO counterparts. its current session. 234. The representative of FAO stated that there i 231. At the 12th and 13th meetings, on 19 and 20 was great scope for complementarity of efforts, based ) April, the representatives .of the specialized agencies on full utilization of the experience and expertise of and other United Nations bodies (the ILO, FAO, FAO and the specialized work undertaken by UNIDO UNESCO, WHO, IBRD and its affiliates, IMF, on industrialization and manufacturing. That, however, GATT, UNCTAD and the World Food Programme) was not so much a matter for co-ordination but of full­ \ welcomed the establishment of UNIDO, assured the fledged co-operation. FAO recognized that UNIDO t new organization of their full co-operation and spoke had a general planning function covering all industrial of the co-ordination of their activities in the field of development, including the sector which was the direct , technical assistance. responsibility of FAO, and it stood ready to assist and r 232. The representative of the World Food Pro­ co-operate with UNIDO in the development, formula­ 1 gramme, having explained the four types of operations tion and consideration of those plans. He recalled that ~ undertaken by the Programme, stated that it co-operated the FAO Conference had recognized the interdepend­ ) with the United Nations agencies both in the preparation ence of agriculture and industry and had emphasized and implementation of the projects, and that there was that processing industries based on products derived t, ample room for further assistance by the Programme in from agriculture, forestry and fisheries could not be the field of industrial development. The representative adequately dealt with independently of the various of UNCTAD observed that because his organization aspects of production of the raw materials and the and UNIDO had been established almost simultane­ economic and social considerations affecting the people ously, it had been possible to delineate their respective involved. Under the applicable resolution the Confer­ fields of competence and to lay down guidelines for co­ ence had considered therefore that the proper manage­ operation between them. UNIDO could play a valuable ment and development of renewable natural resources role in promoting the exports of the developing coun­ required that there should be no divorce between re­ tries, both in terms of quantity and quality, for the sponsibility for these resources and for the industries more sophisticated markets of the developed countries. based upon them, and it reaffirmed the responsibility In that important task, the United Nations should go of FAO for advising and assisting member nations on J beyond co-ordination to create a true community of ac­ the sound development of industries, either based on 1 tion. The representative of UNESCO said that UNIDO renewable natural reSOttTces or designed to meet food \ should legitimately assume some of the tasks directly and nutritional needs. FAO had also certain respon­ linked with industrialization which UNESCO had sibilities for industries producing agricultural requisites, , previously accepted in the absence of an agency specially such as fertilizers, insecticides, agricultural chemicals qualified to meet the pressing requests of Member etc., some of which had an industrial connotation pri­ States. UNESCO envisaged co-operation with UNIDO marily of interest to UNIDO. He was favourably im­ in the area of literacy programmes integrated with in- pressed by the views expressed in the Board that the 27 co-ordination role of UNIDO would not involve a mental and intergovernmental levels with a view to reduction of the industrial development activities already harmonizing policies on industrial programmes that being carried out by FAO but would intensify what were already being carried out by the agencies. The was already being done by the agency. Any other course developing countries themselves should review co­ could 'Only r.esult in diffusion and duplication, since ordination at regional and subregional levels, and the one of the prIncipal handicaps to industrial development recipient countries should take a concerted approach in was the scarcity of skilled technicians. the preparation of joint action projects. They spoke 235. In the discussion that followed, there was broad in favour of a gradual decentralization of UNIDO activities, in the light of accumulated experience and agreement among the delegations that General As­ ~f sembly resolution 2152 (XXI) had conferred upon of the posting of UNIDO experts to the offices the UNIDO the primary responsibility for reviewing and Resident Representatives. The organization shoulcl par­ promoting the co-ordination of all activities of the ticipa~e at a. very ~ar1y stage in the planning and United Nations system in the field of industrial deve1­ selectlOn of llldustnal programmes and projects of o~h~r 01?met;t. T~e ve~y nature of the in.dustrialization process, agencies! wi.thout, howeve.r, displacing the spe­ 1, WIth Its dIVerSity and c'Omplexlty, made it essential claltzed agenCIes m the executIOn of their projects. that effective co-ordination should be established and The Board considered it necessary that the Executive tha~ UNIDO should play the central role assigned Director should prepare a report for the second session to It under the resolution. The discussion, however, of the Board with practical suggestions about the prob­ centred on the interpretation of the mandate of UNIDO lem. One representative recalled that in the discussion in relation to the responsibilities of the Economic and which had led to the adoption of General Assembly Social Council, the specialized agencies and other resolution 2152 (XXI), co-ordination was one of the United Nations bodies. problems on which the Member States had been most divided. Under the circumstances, the Board should not 236. Many representatives maintained that the man­ t~ke any hasty. de~i~ion on the. m~tter. He also ques­ date ?f UNIDO did not signify that the specialized tioned the advlsablltty of establtshmg a standing com­ agencIes should be subject to regulation or co-ordination mittee on co-ordination, as had been proposed by by the Industrial Development Board, since the over­ several other delegations. a11 responsibility for co-ordination was a matter for the Economic and Social Council. There was need for a 239. Many delegations expressed the view that realistic delineation of functions between UNIDO and throug~1 the co-ordination of UNIDO, the recipient the other United N atio11s organizations. On that basis, countnes would be enabled to associate themselves the necessary co-ordination on problems of duplication mo~e. closely with policy discussions and executive or on possibilities for joint action could be worked out deCISIons. They stressed that it was incumbent upon primarily at the secretariat level with the aid of the the Board to investigate the ways and means to pro­ Administrative Committee on Co-ordination the meet­ mote and establish guidelines for co-ordination between ings. of the .ex~cutive secretaries of the regional eco­ UNIDO and other ~nited Nations agencies and to nomIC commlSSlOns, and the Inter-Agency Consultative ensure full co-operatIOn among them on a practical Board of UNDP. Only when major intergovernmental ba~is. The organizations concerned should find appro­ decisions were required should co-ordination problems pnate formulae to define their respective spheres of be brought before the Board. competence in order to contribute to the best of their abilities towards the realization of joint projects. How­ 237. Some of the latter observed that there still ever,. such ~n approach should not be unduly rigid, remained a vast area in the field of industrial deve1­ and. m certam cases UNIDO could take charge of joint opt;Jent, 110t yet covered by international agencies, in proJects. whIch .UNIDO could ,usefully concentrate during its 240. Some representatives maintained that the task formative years, accordmg to the circumstances and for ~o-or~ination the benefit of the countries to be assisted. Eventually of improving could not be left entirely to the secretanat, smce under the enablinO' resolution perhaps, the Board would consider possible adjustments cl~arged fUI~ction. to ~e made in the responsibilities of the various organi­ the Board itself was with that They supported the suggestion that the secretariat should zatIOns concerned. Co-ordination with FAO the ILO ~repare UNCTAD, GATT and other internation~l agencie~ a document listing all international organiza­ tions and governmental bodies in the field of industria! should be solved pragmatically, as had been outlined developn:en~, by the Executive Director in his statement before the v.:ith a brief de.scription of their activities ~oard. In I;ractice, c?-ordinat.ion was primarily a ques­ and ,an .1I1dlcatIOn of the eXIsting or possible areas of tion of fleXIble :vork1l1g relations between the agencies dupltcatlOn. The report should also include a summary co~cert;ed, and It ",,:as a matter for negotiation and not of the .agreemet;ts on co-ordination already concluded or envIsaged WIth UNIDO. One representative sug­ legIslatIOn..In certa1l1 specific cases, especially in multi­ t1~at age~cy ~nd. gested the Executive Director should be requested projects the programme of special industrial su~mlt serVIces, co-ordmatlOn could and should be achieved to to each regular 'Session of the Board an analytical report on the activities of the United Nations forthwit.h! to ensure that the resources of the agencies syst~m we~e u~lltzed to the best advantage. One representative in industrial development, drawing attention ma1l1tamed that u:~nDO.should keep itself fully in­ speCIfically to areas of duplication. The Executive Di­ r~ctor should examine, in consultation with the execu­ formed of all the mdustnal development activities of t~v~ Un~ted oth.e~ :United Nations agencies and ensure that its own .l;eads o.f the. Nations agencies, the pos­ actIVIties were understood by them. slbIlttles for mcludmg 111 the annual consolidated report an account of the future programme of activities to 238. Some !ep~esentatives observed that the prob­ be underta~en by the various organizations. Another lems o~ co-ordlllatt~n could be more easily resolved if representative suggested that the secretariat should sub­ the.natl~nal de1~gatlOns took consistent positions at the mIt to the second session of the Board a long-term vanous mternatlonal agencies concerned with industrial work pr~gram:l.1e, taking into account the Board's development. Co-ordination was needed at both govern- present dISCUSSIOns and the conclusions to be reached 28 - at the forthcoming International Symposium on Indus­ 242. Several representatives maintained that it trial Development. The plan should cover fields which would be inadvisable to reduce the role of UNIDO to had not heretofore received adequate attention, particu­ that of a centre for collection of data and exchange of in­ larly the utilization of natural resources, the training formation, for mere exchange of information could not of management personnel and the questions related to serve as a substitute for effective co-ordination. proj ect preparation and evaluation and to location and organization of production. 243. There was general agreement that one of the principal aims of co-ordination with the United Nations 241. Several delegations noted with regret the state­ agencies should be the promotion of field operations at ment that co-ordination was a matter for negotiation regional, subregional and country levels. UNIDO rather than legislation. It was noted that on matters should establish co-operation not only with the regional of negotiation, UNIDO, because of its present limited economic commis'sions, but also with international and resources, would not be on an equal footing with the regional development banks. Field operations should be older United Nations agencies. Therefore, the Board further co-ordinated by the posting of UNIDO indus­ should assume full responsibility for co-ordination, at trial advisers to the offices of the UNDP Resident least during the first two years of its existence. Representatives,

Chapter VIII

REVIEW OF ACTIVITIES OF THE UNITED NATIONS SYSTEM OF ORGANIZATIONS IN THE FIELD OF INDUSTRIAL DEVELOPMENT

244. In its consideration of agenda item II, the particular regard to the need for: (a) reducing to a mini­ Board had before it the report of the Executive Direc­ mum the descriptive text of each project in the most concise tor of UNIDO on the activities of the United Nations manner possible; (b) revising the classification of the mate­ rials so as to give adequate weight to the various industrial system in the field of industrial development submitted branches by establishin,g a separate chapter in the report pursuant to Economic and Social Council resolutions for each branch of industry grouped under chapter VI and 1081 (XXXIX) and 1181 (XLI) (ID/B/3 and an additional chapter containing a list of projects for each Corr.! and 2 and Add.l-8), country; (c) presenting all the information fully classified under the various headings covering each particular area of 245. In the general debate, the Executive Director activity' and (d) ensuring that the report is made availa1:tle had pointed out that in the light of the Board's over-all to the ~embers of the Board as early as possible, as provided policy responsibilities and its central role of co-ordina.t­ in the rules of procedure. ing all the activities of the United Nations system 111 The Board also invited the United Nations speeialized this field, it might be open to question whether patterns agencies, the International Atomic Energy Agency, the of reporting which had been developed in different United N,ations Development Programme, the United circumstances should be retained or whether a pattern Nations Conference on Trade and Development, the regional more appropriate for examination by the Board needed economic commissions and the United Nations Economic and to be developed. Social Office in Beirut, as well as other United Nations bodies and contributing organizations concerned, to make 246. In particular, the Executive ~irector thou~~t available the necessary information to UNIDO sufficiently there might be a need for closer analySIS of the actIvI­ in advance to permit timely preparation and distribution of a ties of the individual branches of industry so as to consolidated report of the industrial development activities enable the Board to deal with the specific problems of of the United Nations to Governments of Member States, each as they affected the others and to make it possible 249, Amendments submitted by India, Pakistan and to set up basic guidelines, not only with a view to the United Arab Republic (ID/B/L.28) would add the achieving adequate co-ordination, but also as a way of following paragraphs to the Philippine proposal: harmonizing the activities of individual agencies within an integrated approach in order to increase their effec­ To enable the Board to discharge its responsibility for the co-ordination of the activities of the United Nations system tiveness and over-all impact, in the field of industrial development, the Board decided to 247. The Board also had before it a proposal by the request the Executive Director: Philippines (ID/B/L.26) and amendments to it by (a) To submit to the Board at each regular session an India, Pakistan and the United Arab Republtc analytical report on the activities of the United Nations sys­ (ID/B/L.28) for inclusion in the Board's report on tem in the field of industrial development, drawing attention this item. specifically to gaps of action and areas of duplication, if any; 248. The proposal of the Philippines (ID/B/L.26) (b) To examine, in consultation with the executive heads other organizations in the United Nations system, the pos­ read as follow.s: sibility of including in the annual consolidated report an ac­ The Industrial Development Board noted with appreciation count of the future programmes of activities which these or­ the consolidated report of the industrial development activities ganizations propose to undertake in the field of industrial of the United Nations system contained in document ID/B/3 development and to submit a report to the Board at its next and Corr.l and 2 and Add I to 6, It decided to request the regular session. Executive Director of UNIDO to submit an updating of that report to the Board at its next session in a suitable form and, 250. The Philippine proposal and the amendments in consultation with the organizations contributing materials submitted by India, Pakistan and the United Arab Re­ to the report, to improve the contents of the latter with public were adopted unanimously. 29 Chapter IX

ORGANIZATIONAL MATTERS, INCLUDING THE STRUCTURE AND FUNCTIONS OF THE SECRETARIAT

251. The Board had before it two notes by the Ex­ 255. It was stated that the operational activities of ecutive Director concerning the secretariat of UNIDO UNIDO had progressed so slowly as to raise the (ID/B/L,l and ID/B/L,3) submitted ~t the request question whether existing projects being executed by of several delegations. A draft resolutlOn submItted other United Nations organizations should ,be trans­ by Cameroon, Peru and the Philippines (ID/B/L.8) ferred to UNIDO. Every effort should be made to called, inter alia, for decentralization of the structure of develop good industrial projects and to speed their UNIDO, establishment in due course of regional, and implementation. subregional centres and a. UNIDO liaison offi~e to be 256. Some delegations, noting the absence of a maintained at United Nations Headquarters 111 New European unit in the Technical Co-operation Division, York for the purpose of continuing close contact with stressed that European countries, like those of other related organs of the United Nations family and the regions, were interested in sharing their experiences in international financial institutions. the field of industrialization and in furthering inter­ 252. Several delegations were critical of the present national co-operation to assist the developing countries. structure of the secretariat which, they felt, put too 257. A number of delegations emphasized the desir­ much weigbt on the side of administration and re­ ability of decentralizing the structure of UNIDO to search and too little on 'staffing in the field for action­ make advisory services and assistance in development oriented programmes. Administrative CDSts should of projects available at the regional and local level. be reduced in order to provide greater resources for Industrial advisers should be stationed in the offices the industrial development projects. Criticism was also of the Resident Representatives of UNDP and in the levelled at duplication in staffing, and the need for regional economic commissions to assist in developing greater co-ordination with the specialized and affiliated projects, expedite the execution of existing projects, agencies of the United Nations was stressed. Greater maintain liaison with and implement policies established attention should be given to equitable geographical at UNIDO headquarters, advise Governments, and distribution of posts in the secretariat. One delegate promote co-ordination with other United Nations objected to the imbalance with respect to the languages agencies in the field. An alternative suggestion was spoken by officials of the organization; he found it made that UNIDO should have its own regional and intolerable that experts should be sent to regions whose subregional offices, maintaining a nucleus of staff in language they did not speak. The view was expressed the various regions. As far as possible, the advocates that more senior posts should be filled by recruitment of decentralization proposed that UNIDO resources from the developing countries. One delegation requested should be devoted to field activities. The headquarters the Executive Director to provide details of consultants staff should be kept small and reliance should be placed and experts utilized by UNIDO so that the staff es­ on consultants and other outside help for specialized tablishment could be viewed in context. expertise. This would give flexibility to the organiza­ 253. The members of the Board generally agreed tion so that it could tailor its assistance to the specific that one of the most important organizational problems needs of the developing countries and draw on tech­ facing UNIDO was the need for a secretariat soundly nical knowledge of industry around the world. constructed both as to structure and to recruitment 258. While some delegations made statements in of personnel. The functions of the staff should reflect favour of decentralization, some other delegations the priority needs of developing countries. Account believed that UNIDO should have a strong central should be taken of the technical expertise available in structure at this stage of its activities. UNIDO must the United Nations specialized and affiliated agencies respond to the needs and demands of the developing and in the regional economic commissions. There must countries, and the Dnly scientific way to do this was be a rational balance between technical and adminis­ to become familiar with the industrial development trative personnel and among headquarters, regional and plans and long-term needs of those countries. For local staff, Staff members must be highly qualified this purpose the secretariat must be, at one and the same in their respective fields, although the view was also time, both sectoral and territorial in its structure. One expressed that the organization would need "gen­ delegation found that the creation of the Industrial eralists" as industrial advisers. Pending the determina­ Technology Division and the Industrial Policies and tion of tbe work programme, the structure would have Programming Division-which had been criticized by to remain flexible. several delegations-was entirely justified but expressed 254. One member observed that in its present for­ some reservations about the variety of functions en­ mative stage UNIDO could not be expected to realize trusted to the Industrial Services and Institutions its full potential as an action-oriented organization. The Division. present structure would have to be maintained until 259. The Assistant Administrator of UNDP made a after the International Symposium on Industrial De­ statement (ID/B/L.29), in which he described to the velopment, and a choice must be made between doing Board the relationship of UNDP to UNIDO in the a few things well or undertaking a large number of development of industrial development proj ects, parti­ activities to whicb the organization could not at present cularly as it involved the work UNIDO would have to do justice. Another delegation thought that organiza­ assume. UNDP would render every assistance in the tional expansion should not take place until it was execution of these projects. He welcomed the sugges­ clear to what extent such expansion would be directly tion that industrial advisers of UNIDO should be related to the specific requests of Governments. stationed at UNDP offices and said that the Adminis- 30 trator was prepared to recommend that a number of to UNIDO as an organization which identified the posts of that kind be financed jointly. He assured the potential and existing reserves of experience, know­ Board that UNDP would continue to work in the ledge and resources and stimulated the full mobilization closest possible co-operation with UNIDO. of those reserves in an intelligent way. He pointed out 260. Regarding the move to Vienna, concern was that the secretariat of UNIDO would have to serve expressed that it might disrupt, or at least interrupt, the General Assembly, the Economic and Social Council, the continuity of the programme. Close collaboration the Industrial Development Board, the regional eco­ with the United Nations and with the International nomic commissions and many other bodies in the United Atomic Energy Agency was urged for the purpose of Nations family with documents and studies as part speedy establishment of the new headquarters. Optimum of the United Nations system; these were duties which use should be made of existing services, though the UNIDO would have to fulfil. The organization would move would inevitably cause difficulties; UNIDO must also have the important function of co-ordinating the continue to provide adequate administrative and pro­ work of the United Nations family of organizations in gramme support to personnel in the field. There was the field of industrialization. However, it would require general agreement that a liaison office of UNIDO staff and organization to carry out those functions. should be established in New York to ensure continuing 263. The most important task of UNIDO was in close relations with UNDP and other branches of the the field of technical co-operation-to receive requests United Nations family. A staff of not more than five from Governments and to examine them substantively, or six was proposed for this office. financially and operationally. For these purposes the 261. At the conclusion of the general debate on this secretariat must be able to cover the main fields of subject, several delegations admowledged that in the industry. Most of the troubles of the organization, he long rtm the work programme, now under discussion commented, were due to the fact that with a limited by the Board, would determine the structure of the secretariat it was impossible to cover adequately the secretariat. Until then emphasis should be placed on main fields of inclustry. It was necessary to meet recruitment for work in the field. Personnel should be requests from many countries at different stages of recruited to meet the needs of the programme, and not industrialization, requests in about thirty areas, and l vice versa. When the work programme hac! been shaped, these were the areas which formed the basis of the the structure of services and the assignment of re­ target manning table. The programme was dynamic sponsibilities would be linked to the programme, which and changing, it required generalists as well as special­ would in turn derive from the requests of Govern­ ists; and it called for staff qualified and acquainted with ments rather than from fixed priorities. Final responsi­ the developments in each field. bility for organizing the secretariat would rest with 264. The Executive Director welcomed the sug­ the Executive Director, and it was hoped that sugges­ gestions put forward in the debate for a field service; tions made by members of the Board in the debate such a service would be a very important arm for the would be followed up in a constructive way in order to operational activities of UNIDO and would work provide guidelines for the future organization of closely with the regional economic commissions, the UNIDO. regional development banks and the UNDP Resident 262. The Executive Director, commenting on points Representatives. made in the general debate, 6 expressed appreciation for 265. The Executive Director acknowledged the need constructive ideas and observations put forward by for improvement in the recruitment system in order members of the Board. He confirmed the understanding to assure a flow of experts and experience, particularly of certain members as expressed in the debate that it from the industrial countries. He could not claim that was the responsibility of the Secretary-General to or­ any administration was or should be immutable, but it ganize and supervise the work of the secretariat within would be necessary to have some planning a little ahead the general rules established for that purpose. In his of time. Recruitment would continue and would not view, UNIDO was not an action-oriented but a "pro­ stop as long as it was needed for the organization and motional organization", a kind of central co-operative functions that UNIDO should fulfil by its mandate pool thTQugh which it would be possible to draw on the and authority; he would not stop building the minimum experience, technical knowledge and tangible resources viable machine needed for UNIDO. Perhaps the crisis of all participating countries. The role of UNIDO of UNIDO today had arisen from the high hopes and < included field operations, whether in the form of tech­ expectations held for the organization when it was \ nical assistance or otherwise, but field activities were not created, which had given it a broad area of competence the only functions of the organization, though they were and responsibility not yet matched by resources. the most important ones. It would not be possible to ( 266. Some delegations, in commenting on the Ex­ industrialize the developing countries with a mere $10 ecutive Director's statement expressed concern at I or $20 million a year. He felt, however, that the certain aspects of his approach, in particular his state­ "leverage effect" of those funds, the leverage effect of , ment that he did not see UNIDO as an action-oriented the Board and the effectiveness of the functions of organization. Other delegations, however, supported UNIDO in all aspects would help to create the under­ the interpretation put forth by the Executive Director. standing and abilities necessary to draw on all resources available for the industrialization of the 267. The representative of Peru, on behalf of the J developing countries. This was what he meant by "pro­ sponsors, introduced a draft resolution submitted by 1 motion". UNIDO would not be a mere employment Cameroon, Peru and the Philippines (ID/E/L.8/ office for staff or technical assistance experts. The Rev.l) which read as follows: organization would not be permitted to be a large body The Industrial Development Board, with no mind. The developing countries would look Recalling General Assembly resolution 2212 (XXI) con­ cerning the location of the United Nations Industrial Develop­ 6 For the full text of the Executive Director's statement, see ment Organization (UNIDO) headquarters in Vienna, annex VII. Austria, 31 Bearillg in milld the purposes and functions of UNIDO as "Recognizes" and the words "shall establish" by "should envisaged in General Assembly resolution 2152 (XXI), establish". COllsideritlg the need for maintaining close co-ordination 270. The delegation of Somalia proposed that in and co-operation between the UNIDO secretariat and other operative paragraph 1, the words "to the Board at its organs and agencies of the United Nations in carrying out next regular session" should be inserted after"Requests its industrial development activities and in keeping close contact with governmental and non-governmental institutions the Executive Director to submit" and the word concerned with industrial development, particularly in the "practical" should be inserted before "decentralized developing countries, structure". Those changes would allow the deletion 1. Requests the Executive Director to submit an outline of operative paragraphs 2 and 3, since the immediate of a decentralized structure on the distribution of the staff creation of regional and subregional centres appeared of UNIDO particularly the assignment of industrial advisers inadvisa.ble, and the Executive Director could usefully and other field pers()nnel in the developing countries, with submit an outline which might enable the Board to a view to increasing the efficiency of its work towards the decide at the next session whether or not such centres accelerated industrialization of the developing countries; should be established. 2. Decides that in pursuance of the objectives of decentr~l­ 271. At the 33rd meeting the representative of ization 0 fits activi ties and staff, UNIDO shall establIsh at an opportune time regional and subregional centres in Peru, speaking on behalf of the sponsors, felt that there Asia, Africa and Latin America; was a majority which regarded the draft resolution as 3. Requests the Executive Director to undertake co~­ a sound one. However, in a spirit of compromise, the sultations with the member GQvernments of UNIDO m sponsors had decided to make certain additional changes Africa, Asia and Latin America regarding the establishment to take into account the constructive suggestions put of the regional and subregional centres of UNIDO and to forward by certain delegations. The preamble and report to the Board at its next session on the result of these operative paragraph 1 would remain unchanged. Oper­ consultations; ative paragraph 2 would read: "Recognizes the need 4. Takes note with aPpreciatioll of the efforts made by to establish at an opportune time regional and sub­ the Executive Director in co-operation with the Administrator regional centres in Asia, Africa and Latin America in of UNDP to send UNIDO industrial advisers to the offices of order to achieve the objective of decentralizing activities the UNDP Resident Representatives and requests that efforts should be continued and expanded to assist the Gov­ and staff". Thus, no formal decision would be taken, ernments of the developing countries in the preparation of but the advisability of decentralizing at an opportune requests for technical assistance in the industrial field; time would be acknowledged. In operative paragraph 5. Requests the Secretary-General to provide to the 3, the words "and also with the regional economic com­ Executive Director the necessary facilities for maintaining missions, the United Nations Economic and Social offices of UNIDO at the United Nations Headquarters in Office in Beirut, and other United Nations agencies New York with a view to ensuring the continuous contact interested in industrial development, with a view to of UNIno with the organs of the United Nations and the ensuring co-ordination and co-operation" would be international financial institutions. added after the words "in Africa, Asia and Latin 268. In the view of the sponsors, there was general America". In paragraph 5, the word "liaison" should be agreement that decentralization of the staff would as­ added before the word "offices". All that the sponsors sure greater efficiency. The structure of the secretariat wanted was acceptance of the principle that decentraliza­ could not yet be definitely organized, since it would tion was advisable. depend on the work programme, but it could be as­ 272. A number of delegations felt that it might be sumed from the outset that the headquarters staff should premature to take a decision in this matter. They sug­ be as small as possible. Regional centres staffed by gested that the proposals contained in the draft resolu­ UNIDO personnel should be established in Asia, Africa tion could be incorporated in the Board's report. and Latin America; this would greatly facilitate co­ 273. The representative of Peru stated that the ordination of industrial development activities. The sponsors of the draft resolution had no intention of ideas embodied in the draft resolution were also in­ forcing it to a vote. In the interest of reaching a tended to maintain the autonomous character of the unanimous decision they had undertaken informal con­ organization as laid down in General Assembly resolu­ sultations with those delegations which had expressed tion 2152 (XXI); if the organization was to function reservations and they had been prepared to make con­ efficiently it must eventually have representatives in cessions with regard to changes in their text. However, all countries. Service in the developing countries would it had not been possible to reach a final agreement provide an opportunity for UNIDO staff to familiarize because of lack of time. While they were convinced themselves with local conditions and improve the ef­ that the draft resolution would have had the support fectiveness of their work. of a large majority in the Board, they would not press 269. The delegation of Brazil, supported by the for a vote but would ask that the text should be in­ delegation of Colombia, proposed that in operative para­ cluded in the Board's report. The sponsors reserved graph 2, the word "Decides" should be replaced by the right to revert to the original text of their draft.

Chapter X FINANCIAL QUESTIONS 274. Financial questions were considered by the paragraph 20, the expenditure of the organization was Industrial Development Board at its 18th, 20th, and classified under (a) expenses for administrative and 22nd meetings, on 26, 27 and 28 April 1967. research activities and (b) expenses for operational 275. The Board noted that in accordance with Gen­ activities. The expenses for administrative and research eral Assembly resolution 2152 (XXI), section rI, activities were to be financed from the regular United 32 Nations budget, and the General Assembly had ap­ important also to avoid any prior earmarking of the proved for these purposes an appropriation of $5,729,500 funds for a specific field of action. in the 1967 budget. 282. A number of delegations suggested that as­ 276. The operational activities of UNIDO were sistance should be distributed equitably among countries financed from several sources, including assessed and and should no longer he based on random requests, for voluntary contributions. Funds allocated from the Tech­ such a method opened the door to certain influences. nical Assistance component of UNDP for industrial development projects in 1967 amounted to $2,832,000, 283. Concern was expressed by some delegations and a sum of $1,049,000 was assigned to industrial de­ about the tendency to make UNIDO a subsidiary organ velopment projects in 1967 from the United Nations of UNDP. It had been restated earlier that the greater regular programme of technical assistance. Under the the UNDP resources were, the greater would be the programme of special industrial services, voluntary con­ amounts devoted to activities in the field of industrializa­ tributions had been pledged in the amount of $7,006,666 tion. Yet this year there were only three UNDP pro­ of which $4,062,221 had been paid by 31 December jects involving UNIDO-a situation which was partly 1966. A similar cumulative comparison for the year attributed to the lack of requests for assistance. It was 1967 of the corresponding data regarding allocations necessary for UNDP to publicize the availability of for industrial development projects under the Special assistance for industries, for the needs were enormous. Fund component of UNDP was not possible because With regard to resources under the regular programme of the differences in patterns of allDcation and ex­ of technical assistance, some delegations felt that it penditure and the varying duration of the projects. would be desirable for the Board to recommend that However, it was noted that executing responsibility the budgetary appropriation granted to UNIDO should had been assigned to UNIDO for eighteen active pro­ be separate and that the Board should be allowed to jects in the field of industrial development, with total administer it. project costs amounting to $36,163,000, representing 284. Some delegations felt that the procedures for Governing Council earmarkings of $16,549,100 and the approval of projects by the Governing Council of government contributions in kind of $19,614.000. The UNDP were cumbersome. They noted that the special J assistance to industrial development projects from industrial services programme, designed for "trouble­ voluntary contributions under the funds-in-trust pro­ shooting" purposes, had not met the expectations of ~ gramme was estimated at about $330,000 for 1967. the developing countries, because of the delays that i 277. In the general debate on financial questions a the procedure of joint approval by the Executive \ broad majority of delegations pointed out the im­ Director of UNIDO and the Governing Council of portance of devoting as large a share as possible of UNDP entailed. 1 the resources of UNIDO to operational activities. 285. Other delegations noted that, in connexion Several delegations observed that some of the difficulties with financial problems, the first question was whether experienced by UNIDO in preparing and implementing UNIDO activities in 1967 and 1968 would really be operational programmes were traceable to the fact that \ hampered by lack of resources. As far as expenditure it had no funds of its own. That lack was due, in relating to administrative and research activities was ) particular, to the fact that UNIDO, being a new or­ concerned, an allocation of approximately $7 million ganization, was at a disadvantage in competing with had already been approved. With regard to operational the specialized agencies for UNDP funds. activities, the appropriations under UNDP, the regular 278. Many delegations expressed the view that the programme of technical assistance and the programme \ difficulties would be alleviated only if funds were placed of special industrial services amounted to about $15 , under the direct control of the organization. The Board million. Furthermore, as the secretariat was engaged .. recalled that the General Assembly, in resolution 2152 in preparations for the International Symposium on , (XXI), had decreed that UNIDO should be an auto­ Industrial Development, and the transfer of UNIDO to nomous organization within the United Nations. Certain Vienna was imminent, there would inevitably be a delegations felt that no organization could be auto­ slackening of activities. nomous unless it had financial resources under its direct 286. It was also pointed out that, unless the Board control, as was the case with specialized agencies. held a resumed session, consideration of those expenses ,\ 279. The view was expressed that the Executive of the organization which were to be borne by the \ Director should ,be allowed some discretion in hudg­ regular budget of the United Nations for 1968 would etary matters, and should in particular be authorized have to be left to the Fifth Committee of the General to transfer funds from one section -of the budget to Assembly. It was important, therefore, to set the date another. of the Board's next session in such a way that its 280. The fundamental problem was to define the deliberations would serve some purpose as far as the / relations between UNIDO and UNDP. The relevant 1969 budget was concerned. I provisions of resolution 2152 (XXI) must be strictly 287. The Board should lay the foundations for an applied; UNIDO must participate in the programme expanded programme of industrial development, in so on the same basis as other participating organizations. far as it was helping to solve the most important current Hence, UNDP must make available to UNIDO the problems, namely, the formulation of economically viable resources it needed for the execution of industrial :requests. It would be idle to consider the different projects in the developing countries. procedures for financing operational activities without 281. The importance of the programme of special having a comprehensive picture of the situation with industrial services, which enabled requests for as­ regard to requests, from the point of view of both sistance to be met more quickly, was emphasized, A quality and quantity. majority of delegations expressed the view that con­ 288. Another opinion expressed was that it had not tributions should be paid to it directly and should not yet been demonstrated that UNIDO either needed or be placed in the care of any other organization. It was could put to worth-while use for operational purposes 33 funds over and above those at present made available tion in a manner that was acceptable, as far as possible to it under UNDP and the programme of special in­ to the major donors. ' dustrial services. To make the most effective use of 294. Some delegations expressed a desire that the available resources, UNDP and UNIDO must be able Executive Director sbould consider the possibility of to reply promptly and,flexibly to requests from Govern­ obtaining finances for UNIDO from private sources. ments, but both organizations were certainly capable of making the necessary adjustments themselves. 295. One delegation suggested that the financial 289. UNDP presented a statement relating to in­ structure and regulations of UNIDO should be clarified dustrial projects submitted by Governments which were and elaborated; he suggested that the Executive Di­ 1 currently under review and informed the Board that rector give priority to this matter and report on it at I of the acceptable projects under consideration, three the next session of the Board. were being submitted to the Governing Council of 296. At the 36th meeting, the representative of UNDP for approval at its next session. Pakistan intr?duced a draft resolution (ID/B/L.IS/ 290. While there was general agreement that the Rev:2) submItted by Gh~na, Guinea, India, Nigeria, resources of the United Nations for industrial develop­ Pakistan, Rwanda, Somalia, the Sudan and the United ment assistance should be steadily increased, different Arab Republic. It read as follows: views were expressed On the manner in which con­ The Board, tributions to UNIDO should be made for the financing Recalling the provisions of General Assembly resolution of operational activities. It was recalled that under 2152 (XXI) of 17 November 1966, General Assembly resolution 2152 (XXI), section n, Convinced that the autonomy and effectiveness of UNIDO paragraph 23, voluntary contributions to UNIDO for can be better ensured if it also has its own independent its operational 'activities may be made at the option financial resources, of Governments through a pledging conference con­ Desirous of making available to the organization all such vened by the Secretary-General of the United Nations means as may enable it to make an effective and efficient on the recommendations of the Board. beginning, especially in its operational activities, 291. A number of delegations were in favour of Conscious of the important role of the United Nations holding such a conference and based their position on regular programme of technical assistance as a promotional instrument in broadening the direct assistance provided to the need for UNIDO, as :m autonomous organization, the developing countries in the field of industrial development, to have increased resources under its direct control Recogllizing that it is necessary to revise the provisions and its own independent source of fmancing. It was governing the United Nations regular programme of tech­ observed that although some of the larger donor coun­ nica1 assistance with a view to: tries might not wish to contribute to UNIDO through (a) Increasing the level of the allocations to industrial a pledging conference, contributions pledged by smaller development projects within the total appropriations under contributors througb this channel would indicate sup­ part V of the regular budget; port for UNIDO. Other delegations suggested that (b) Providing for separate programming and approval UNIDO should be provided with more direct control of these allocatiollli, over the present funds at its disposal for industrial 1. Invites the Secretary-General of the United Nations projects. to convene an annual pledging conference in accordance with 292. Statements were made, on the other hand, by section Il, paragraph 23 (a), of General Assembly resolution 2152 (XXI), the first such conference to be convened during other Board members, principally from the larger the twenty-third session of the General Assembly j donor countries, opposing the holdings of a pledging 2. Recommends to the General Assembly at its twenty­ \ conference. The view was expressed by these members second session to take aWl'opriate action: that the holding of a pledging conference at this time , (a) To establish a separate appropriation in the United ... was definitely premature and would not achieve the Nations budget to provide for the programnle of technical \ desired results; existing arrangements for securing assistance in industrial development at an appropriate level funds required to meet requests for assistance were commensurate with the expanding requirements of the de­ considered adequate, and until a clear picture of further veloping countries; acceptable projects was presented, it was difficult to (b) To amend General Assembly resolution 2029 (XX) discuss additional financing; if a pledging conference to enable the Industrial Development Board to consider and was convened, they would not attend but would con­ approve the projects and programmes in the field of industrial development undertaken through the utilization of the re­ • tinue to contribute to UNIDO through the existing sources thus appropriated, and to provide general policy \ channels. guidance and direction with reference' to the utilization of 293, In this connexion, Ghana, Guinea, India, these resources. Jordan, Nigeria, Pakistan, Rwanda, Somalia, the Sudan 297. The representative of the USSR proposed an and the United Arab Republic submitted a proposal amendment whereby the words "Conscious of" at the ! (ID/B/L.1S) by which the Board WOllld invite the beginning of the fourth preambular paragraph would , Secretary-General to convene a pledging conference be replaced by the word "Noting". for the year 1968, during the twenty-third session of the General Assembly, and request the Secretary­ 298. The representative of the United States pro­ General to make a detailed report to the Board at its posed an amendment whereby the words "separate third session on the result achieved during the pledging appropriation" in operative paragraph 2 (a) would be 1 replaced by the words "separate section in part V". conference. Rather than have a vote 'on the issue, one 1 delegation stated that it would be better to describe 299. The representative of Pakistan, on behalf of the situation in the report, making clear that there the sponsors, accepted the amendments proposed by was agreement that increased resources were needed the USSR and the United States. for industrial development, that UNIDO must be 300. The representative of France requested a ro11­ administratively autonomous and that adequate re­ call vote on the fourth and fifth preambular paragraphs SOUTces must be placed at the disposal of the organiza- and on operative paragraph 2 of the draft resolution. 34 301. The fourth preambular paragraph of draft re­ 304. Draft resolution ID/B/L.l5/Rev.2, as amended solution ID/B/L.15/Rev.2, as amended, was adopted was adopted by 24 votes to 10, with 10 abstentions. The by 30 votes to 6, with 8 abstentions. The voting was voting was as follows: as follows: In favour: Argentina, Brazil, Cameroon, Chile, Cuba, In favo-ur: Argentina, Austria, Brazil, Cameroon, Ghana, Guinea, India, Indonesia, Iran, Ivory Coast, Canada, Chile, Colombia, Cuba, Ghana, Guinea, India, Jordan, Kuwait, Nigeria, Pakistan, Philippines, Indonesia, Iran, Ivory Coast, Jordan, Kuwait, Nigeria, Rwanda, Somalia, Sudan, Thailand, Trinidad and Pakistan, Philippines, Rwanda, Somalia, Sudan, Thai­ Tobago, United Arab Republic, Uruguay, Zambia. land, Trinidad and Tobago, Turkey, United Arab Re­ Against: Belgium, Canada, Federal Republic of pUblic, United Kingdom of Great Britain and Northern Germany, France, Japan, Netherlands, Sweden, Switz­ Ireland, United States of America, Uruguay, Zambia. erland, United Kingdom of Great Britain and Northern Against: Bulgaria, Czechoslovakia, France, Japan, Ireland, United States of America. Netherlands, Union of Soviet Socialist Republics. Abstaining: Austria, Bulgaria, Colombia, Czecho­ Abstaining: Belgium, Federal Republic of Germany, slovakia, Finland, Italy, Romania, Spain, Turkey, Finland, Italy, Romania, Spain, Sweden, Switzerland. Union of Soviet Socialist Republics. 302. The fifth preambular paragraph of draft resolu­ 305. The representative of Romania explained that tion ID/B/L.15/Rev.2 was adopted by 21 votes to 13, his delegation had abstained from voting on draft reso­ with 10 abstentions. The voting was as follows: lution ID/B/L.15/Rev.2 because the Government of In favour: Brazil, Cameroon, Chile, Ghana, Guinea, Romania had not yet decided how it wouLd make its India, Indonesia, Iran, Ivory Coast, Jordan, Kuwait, voluntary financial contribution to UNIDO. Nevert'he­ Nigeria, Pakistan, Philippines, Rwanda, Somalia, less it also shared the concern felt that UNIDO should Sudan, Thailand, Turkey, United Arab Republic, have the necessary means to be wble fully to develop Zambia. its activities. Against: Belgium, Bulgaria, Canada, Czechoslovakia, 306. The full text of the resolution ad-opted by the Finland, France, Italy, Japan, Netherlands, Sweden, Board at its 36th meeting on 4 May 1967 is reproduced Union of Soviet Socialist Republics, United Kingdom in annex VIII below (resolution 2 (I». of Great Britain and Northern Ireland, United States 307. At the 37th meeting the representative of India of America. introduced a draft proposal (ID/B/L.18/Rev.l) Abstaining: Argentina, Austria, Colombia, Cuba, sponsored by Argentina, Austria, India and the United Federal Republic of Germany, Romania, Spain, Switz­ Arab RepUblic which read as follows: erland, Trinidad and Tobago, Uruguay. "The Board requests the Executive Director to examine 303. Operative paragraph 2 of draft resolution ID/ and report to the second regular session on the procedures and guidelines for the utilization of funds for operational B/L.15/Rev.2, as amended, was adopted by 19 votes activities to be derived from voluntary contributions to to 13, with 12 abstentions. The voting was as follows: UNIDO under section Il, paragraph 23, of General Assembly In favour: Cameroon, Chile, Ghana, Guinea, India, resolution 2152 (XXI)." Indonesia, Iran, Ivory Coast, Jordan, Kuwait, Nigeria, 308. The representative of the United States ob­ Pakistan, Philippines, Rwanda, Somalia, Sudan, Thai­ served that the proposal seemed somewhat pointless, land, United Arab Repllblic, Zambia. for the general guidelines already adopted covered all Against: Belgium, Bulgaria, Canada, Czechoslovakia, aspects of the work of UNIDO. His Government did Finland, France, Italy, Japan, Netherlands, Sweden, not intend to make a voluntary contribution directly Union of Soviet Socialist Republics, United Kingdom to UNIDO and he would therefore abstain if the of Great Britain and Northern Ireland, United States proposal waS put to the vote. The representative of the of America. USSR said that he would vote for the proposal. Abstaining: Argentina, Austria, Brazil, Colombia, 309. At its 37th meeting, on 4 May 1967, the Board Cuba, Federal Republic of Germany, Romania, Spain, adopted the Indian proposal by 22 votes to nOne with Switzerland, Trinidad and Tobago, Turkey, Uruguay. 4 abstentions. '

Chapter XI

RELATIONS WITH INTERGOVERNMENTAL AND NON-GOVERNMENTAL ORGANIZATIONS

Designation of intergovernmental organizations under The representative of Belgium stated that slnce his rule 75 of the rules of procedure country was the chairman of the European Economic Com~unity 310. The Board at its 27th meeting considered the he was formally informing the Board of applications submitted by the following intergovern­ the WIshes of EEC to be associated with the activities of UNIDO. The Board agreed to associate with mental organizations: UNIl?O . all !he al;lOve-mentioned in~ergovernmental (a) Office africain et malgache de la propriete indus­ orga111zatlOl1s, mc1udmg EEC. Reservattons were made trielle (OAMPI) ; by Cuba regarding the application of OAS. It was also (b) Organization of American States (OAS); stated by one delegation that there was no point in Cc) United International Bureaux for the Protection extending invitations to bodies which might be con­ of Intellectual Property (BIRPI). cerned with trade but not with industrial development. 35 Designation of non-governmental organizations under organizations were authorized to participate as ob­ rule 76 of the rules of procedure servers in the deliberations of the Board and its sub­ 311. The Board had before it the applications of the sidiary organs: following non-governmental bodies for representation: (a) Afro-Asian Organization for Economic Co­ Ca) Afro-Asian Organization for Economic Co­ operation (AFRASEC); operation (AFRASEC) ; (b) International Council for Scientific Manage­ (b) International Council for Scientific Management ment (erOS); (CraS) ; (c) International Association for the Promotion and Cc) International Association for the Promotion and Protection of Private F.oreign Investments (APPI); Protection of Private Foreign Investments (APPI); (d) International Organization of Employers (d) International Organization of Employers (JOE) ; (IOE) ; (e) World Federation of Trade Unions (WFTU); (e) World Federation of Trade Unions (WFTU) i (f) International Chamber of Commerce (ICC); (f) International Chamber of Commerce (ICC). (g) International Confederation of Free Trade 313. The application of the International Confedera- Unions (ICFTU) ; tion of Free Trade Unions was approved by 21 votes to (h) European Centre for Industrial and Overseas to 5, with 2 abstentions. The representative of the Development (CEDIMOM). USSR expressed his Government's reservations. 312. At the request of the Board, the Executive Di­ 314. Regarding the application of the European rector circulated information on the aims and activities Centre for Industrial and Overseas Development of each organization. Reservations were expressed by (CEDIMOM), it was proposed at the 37th meeting of the representatives of Cuba, the Soviet Union, Czecho­ the Board that the secretariat should be asked to obtain slovakia, Romania and Bulgaria regarding the applica­ more information about this organization and that the tion of the International Association for the Promotion Board should defer its decision until the second ses­ and Protection of Private Foreign Investments. Subject sion. The proposal was adopted by 19 votes to 2, with to these reservations, the following non-governmental 8 abstentions.

Chapter XII

PLANNING OF THE SECOND SESSION OF THE INDUSTRIAL DEVELOPMENT BOARD

315. The Board had before it a draft provisional 321. The representative of the USSR proposed that agenda for the second session (ID/B/L.27) drawn up items 9 and 10 should be merged to read "Draft budget by the Executive Director in accordance with rule 9 estimates for 1969 and financial questions". of the rules of procedure. 322. The provisional agenda for the second session 316. One delegation proposed the convening of a of the Board, as amended in accordance with the above 1 resumed session of the Board, in New York, in late proposals, reads as follows: September or early October. The Board heard a state­ I ment by the Under-Secretary for Conference Services 1. Opening of the session. 1 to the effect that such a resumed session could be held in 2. Election of officers of the Board (rules 18 and 19 of the 4- the last week of September or the first week of October. rules of procedure). \ 3. Adoption of the agenda. \ However, the proposal for a resumed session received 4. Report on activities of the secretariat of UNIDO. little support and was eventually withdrawn by the 5. Review of the results of the International Symposium sponsor. on Industrial Development. 317. The representative of the United Arab Republic 6. Review of activities of the United Nations system of proposed that a new item, "Establishment of procedure organizations in the field of industrial development. 7. Programme of work of UNIDO (1968-1969). i. -for the admission of non-governmental organizations as 8. Co-ordination of activities of the United Nations system observers", should be included in the provisional agenda. of organizations in the field of industrial development. The representative of the United States proposed that it 9. Draft budget estimates for 1969 and other financial should read: tiNon-governmental organization ques­ questions. tions: (a) Consideration of procedures for application; 10. Organizational matters. I (b) Consideration of applications". 11. Non-governmental organization questions: 1 318. The representative of Trinidad and Tobago (a) Consideration of procedures for application j proposed the inclusion of a new item, "Staff organiza­ (b) Consideration of applications. tion". The representative of Brazil suggested "Or­ 12. Provisional agenda for the third session. 13. Date and place of third session of the Industrial De­ ganizational matters in general". velopment Board. 319. The representative of the Netherlands pro­ 14. Other business. posed that item 10 should be revised to read "Budget 15. Adoption of the report to the twenty-third session of @xecution for 1968 and draft budget estimates for the General Assembly. 1969". 323. The Board decided on 8 April to 3 May 1968 320. The representative of Pakistan proposed the ad­ as provisional dates for the second session, and con­ dition of an item entitled "Provisional agenda for the sidered mid-April to mid-May 1969 acceptable as provi­ third session". sional dates for the third session. 36 Chapter XIII

ADOPTION OF THE REPORT OF THE BOARD TO THE GENERAL ASSEMBLY AT ITS TWENTY·SECOND SESSION

324. At its 39th meeting, on 5 May 1967, the Board adopted the report on its first session, and the President declared the first session of the Industrial Develop­ ment Board closed.

37 ~\ i \ i

.'>, ! (, \

J. ) ~

l 1 ,1 1 I Annex I LIST OF PARTICIPANTS

Members of the Board Advisers

ARGENTINA Mr. Emmanuel Zoa, Deputy Director of Planning RePresentative Mr. Johnson Ndimbie, First Secretary, Permanent Mission Mr. Eduardo Bradley, Economic Counsellor, Permanent Mis­ Mr. Elias Bah Chamfor, Commercial Attache, Permanent sion Mission Alternate Representative CANADA Mr. Carlos Raul Vidal Etcheverry, Secretary of Emhassy, Representative Permanent Mission Mr. A. S. Abell, Economic Adviser, Department of Industry AUSTRIA Alternate Representative Representative Mr. R. W. MacLaren, First Secretary, Permanent Mission Mr. Carl Bobleter, Under-Secretary of State for Foreign Affairs Advisers Mr. P. F. Brady, Economic Division, Department of External Alternate Representatives Affairs Mr. Kurt Waldheim, Ambassador Extraordinary and Pleni­ potentiary, Permanent Representative to the United Nations Mr. G. S. Shortliffe, United Nations Division, Department of External Affairs Miss Erna Sailer, Head of Department, Ministry of Foreign Affairs CHILE Mr. Erik Nettel, Ministry of Foreign Affairs Represl!lltative Mr. Georg Reisch, Secretary of Emhassy, Permanent Mis­ Mr. Jose Pinera, Ambassador Extraordinary and Plenipoten­ sion tiary, Permanent Representative to the United Nations BELGIUM Alternate Rl!lweseHtatives Representative Mr. Angel Meschi, Corporacion de Fomento de la Produc­ Mr. P. A. Forthomme, Ambassador, Permanent Representa­ cion, New York tive to International Economic Conferences Mr. Uldaricio Figueroa, Second Secretary, Permanent Mis­ Alternate Representatives sion Mr. A. Delvaux, Counsellor of Embassy, Permanent Mission COLOMBIA to International Economic Conferences Representative Mr. J. Woulbroun, Economic Counsellor, Permanent Mission Mr. Julio Cesar Turbay Ayala, Ambassador Extraordinary Mr. A. Onkelinx, Secretary of Embassy, Permanent Mis­ and Plenipotentiary, Permanent Representative to tbe United S10n Nations BRAZIL Alternate Representatives Representative Mr. Alvaro Herd.n Medina, Ambassador Exraordinary and Mr. Geraldo de Carvalho Silos, Ambassador Extraordinary Plenipotentiary, Alternate Representative to the United Nations and Plenipotentiary, Deputy Permanent Representative to the Mr. Pedro Olarte, Minister Plenipoteniary, Permanent Mis­ United Nations sion Alternate Representatives CUBA Mr. Antonio Patriota, First Secretary of Embassy, Perma­ Representative nent Mission Mr. Mario Garcfa Inchaustegui, Ambassador, Director of Mr. Marcio Rego Monteiro, First Secretary of Embassy, International Organizations, Ministry for Foreign Trade Consulate, Boston Alternate Represe'Ltatives Mr. Enaldo Camaz Magalhiies, Second Secretary of Embassy, Mr. Humherto Lastra Alvarez, Director of Economic Or­ Permanent Mission ganizations, Committee of the Council of Ministers on Adviser Economic Co-operation and Science and Technology Mr. Clodoaldo Hugueney Filho, Third Secretary of Embassy, Mr. Juan Sanchez Lameran, Director of the Technical As­ Ministry of Foreign Relations sistance Centre, Committee of the Council of Ministers on Economic Co-operation and Science and Technology BULGARIA Mr. Francisco Iglesias Iglesias, Technical Adviser, Division Reprl!sentative of International OrganizationS' of the Ministry for Foreign Mr. Christo Vladov, Counsellor, Permanent Mission Trade Alternate Rl!presentative Mr. Nicolas Rodriguez Astiazaraln, Counsellor, Permanent Mission Mr. Dimiter Julev, First Secretary, Permanent Mission CZECHOSLOVAKIA CAMEROON Representative RepresentaNve Mr. Drahos Schejbal, Head of Department, Sta.te Planning Mr. Joseph N. Owono, Ambassador Extraordinary and Pleni­ Commission potentiary, Permanent Representative to the United Nations Alternate Representative Altel'nate Representatives Mr. Jan Muzlk, Counsellor, Deputy Permanent Representa­ Mr. Jean-Baptiste Beleoken, Counsellor, Permanent Mission tive to the United Nations 39 Advisers Adviser Mr. Joseph Adamek, Chief Economist, State Planning Com­ Mr. 1. S. Chadha, First Secretary, Permanent Mission mission Technical Adviser Mr. Jindiich Gabriel, Second Secretary, Department for In­ Mr. M. Gopala Menon, Resident Director, Indian Investment ternational Economic Organizations, Ministry of Foreign Af­ Centre, New York fairs FEDERAL REpUBUC OF GERMANY Adviser Representative Mr. I. C. Gl1lati. Permanent Mission Mr. Schmidt-Horix, Ambassador, Federal Foreign Office INDONESIA Altemale Representatives Mr. Heinrich Sartorius, Federal Foreign Office Representative Mr. Hinrichs, Federal Ministry of Economics (from 17 Mr. Abdullah Kamil, Acting Permanent Representative to April 1967) the United Nations Mr. Kurth, Federal Ministry of Economics Alternate Representatives Adviser Mr. Sudarmo Martonegoro, Consul, Consulate General, New York Mr. Schulz, Federal Ministry of Economic UJ-operation Mr. Cyrus Taihitu, Second Secretary, Permanent Mission

FINLAND Representative IRAN Mr. Erik Tornqvist, Director General, Ministry of Finance Representative Mr. Mohammad Yeganeh, Under-Secretary, Ministry of Alternate Representatives Economy Mr. Matti Kahiluoto, First Secretary of Embassy. Perma­ Alternate Representatives nent Mission Mr. Kurt Uggeldahl, Second Secretary of Embassy, Perma­ Mr. Abbas ordoobadi, Ministry of Economy nent Mission Mr. Assadolah Nasr, Ministry of Economy Mr. Wilhelm Breitenstein, Secretary of Bureau, Ministry Adviser for Foreign Affairs Mr. Darioush Bayandor, Attache, Permanent Mission Mr. Heikki Koskela. Federation of Finnish Industries ITALY FRANCE Representative Representative Mr. Maria Franzi, Minister Plenipotentiary, Deputy Perma­ Mr. M. Viaud, Minister Plenipotentiary, Permanent Mission nent Representative to the United Nations Advisers Alternate Representative Mr. Ph. Bernard, Charge de Mission au Commissariat gene­ Mr. Michelangelo Pisani Massamormile, First Secretary, ral du plan Permanent Mission Mr. Ernst, Ingenieur du Genie maritime, Secretariat of State Arhtisers for Foreign Affairs in charge of co-operation Miss Fernanda Forc.ignano, Ministry of Treasury Mr. R. Cesaire, Secretary, Ministry of Foreign Affairs Mr. Sergio Passeggeri, Southern Italy Fund Mr. D, George, Commercial Attache, Permanent Mission Mr. Francesco Fidom, A.G.I.P., USA, Inc. Miss A. M. Hypsmann, Attache, Permanent Mission IVORY COAST GHANA Representative Representative Mr. Simeon Ake, Ambassador Extraordinary and Pleni­ Mr. F. S. Arkhllrst, Ambassador Extraordinary and Pleni­ potentiary, Permanent Representative to the United Nations potentiary. Permanent Representative to the United Nations "I Alternate Representatives Alte1'1ta.te Representatives Mr. N'Guessan Koffi, Ministry of Economic and Financial Mr. ]. Therson-Coffie, Chief Industrial Promotion Officer, Affairs Ministry of Industries Mr. Sibi Gbeho, Ministry of Planning Mr. J. B. Wilmot. Counsellor (Economic Affairs), Perma­ nent Mission JAPAN Ailuisers Rep1'esentative Mr, J. E. K. Aggrey-Orleans, First Secretary, Permanent Mr. Isao Abe, Ambassador Extraordinary and Plenipoten­ Mission tiary, Deputy Permanent Representative to the United Nations Mrs. A. Y. Aggrey-Orleans, Second Secretary (Economic Alternate Represmtatives Affairs), Permanent Mission Mr. Eiichi Yamaguchi, Chief, Economic Co-operation Policy Section, Economic Co-operation Division, Trade and Develop­ i GUINEA ment Bureau, Ministry of International Trade and Industry ! Representatives Mr. Itasu Sakura, Senior Planning Officer, Planning Bureau, r Mr. M'Baye Cheik Omar, Counsellor, Permanent Mission Economic Planning Agency Mr. Dlabate Boubacar, Chief of International Organizations Division, Ministry of Foreign Affairs Advisers Mr. Kunio Muraoka, Second Secretary, Permanent Mission INDIA Mr. Michihiko Ikeda, Second Secretary, Permanent Mission Representative Mr. N. N. Wanchoo, Secretary, Ministry of Industrial De. velopment JORDAN Representative Alternate Represmtative Mr. Moraiwid M. Tell, Minister Plenipotentiary, Ministry Mr. S. Gupta, Consul General of India, New York of Foreign Affairs 40 Alternate Representatives Mr. Ion Desmireanu, Assistant Director of the Institute for Mr. Mohammad Ali Khurma, First Secretary of Embassy, Economic Research of the Romanian Academy Permanent Mission Advisers Mr. Yasin Istambuli, Second Secretary of Embassy, Perma­ Mr. Gheorghe Popa, Second Secretary, Permanent Mission nent Mission Mr. Ion Barac, Third Secretary, Ministry for Foreign Affairs Mr. Walid M. Saad, Second Secretary of Embassy, Perma­ Mr. Nita Constantin, Attache, Permanent Mission nent Mission KUWAIT RWANDA Representative Representative Mr. Soubhi J. Khanachet, Envoy Extraordinary and Minister Mr. Glestin Kabanda, Ambassador Extraordinary and Pleni­ Plenipotentiary potentiary, Permanent Representative to the United Nations Alternate Representatives A Iterlwte Representatives Mr. Sulaiman Majid AI-Shaheen, First Secretary, Permanent Mr. Claver Ryabonyende, First Secretary, Permanent Mission Mission Mr. Leonidas Munyanshongore, First Secretary, Permanent Mr. Sami Yacoub Shammas, First Secretary, Permanent Mission Mission SOMALIA Mr. Faisal Sayid Abdulwahab AI-Rifae, Second Secretary, Representative Permanent Mission Mr. Abdulrahim A. Farah, Ambassador Extraordinary and Adviser Plenipotentiary, Permanent Representative to the United Mr. Bourhan Al Shatti Nations Alternate Representative NETHERLANDS Representative Mr. Mohamed Warsama, Counsellor, Permanent Mission Mr: J. H. Lubbers, Minister Plenipotentiary, Permanent Mis­ sion SPAIN Representative Altemate Representative Mr. Manuel Aznar, Ambassador Extraordinary and Pleni­ Mr. J. F. Boddens Hosang, First Secretary of Embassy, potentiary, Permanent Representative to the United Nations Permanent Mission Alternate Representatives NIGERIA Representative Mr. Tomas Galan, General Technical Secretary of the Min­ istry of Industry Mr. P. e. Asiodu, Permanent Secretary, Federal Ministry of Industry Mr. Francisco J. Vallaure, Minister Plenipotentiary, Director of Economic Co-operation Organizations Alternate Representative -Mr. Luis Guereca, General Sub-Director, Chief of Studies Mr. B. A. Clark, Counsel1or, Permanent Mission Service, Ministry of Industry Adviser Mr. Pedro Temboury, First Secretary of Embassy, Perma­ Mr. A. A. Olumide, Second Secretary, Permanent Mission nent Mission Mr. Juan Moro L6pez, General Technical Secretary of the PAKISTAN Ministry of Finance Representative Mr. Francisco Arana, Commercial Attache, Trade Office, Mr. S. M. Sulaiman, Economic Minister, Embassy, Washing­ New York tOll, D.e. Adviser Altenwte Represmtatives Mr. Angel Ojeda, Doctor of Naval Engineering, Tecniberia Mr. M. G. Dastgir, Director, Pakistan Investment Centre, New York SUDAN Mr. Rafee uddin Ahmed, First Secretary, Permanent Mission Representative Mr. Ashraf-uz-Zaman, Economic Secretary, Embassy, Wash­ Mr. Ali A. Sahloul, Deputy Permanent Representative to ington, D.e. the United Nations PERU A/lemate Representative Representative Mr. Mamoun 1. Hassan, Second Secretary, Permanent Mr. Jorge Pablo Fernandini, Minister Counsellor, Permanent Mission Mission SWEDEN Alternate Representative Representatives Mr. D. Jaime Gceres, First Secretary, Permanent Mission Mr. Borje BilIner, Head of Division, Ministry for Foreign Affairs PHILIPPINES Mr. Lars Kalderen, Head of Department, Swedish Interna­ Representative tional Development Authority Mr. Salvador P. Lopez, Ambassador Extraordinary and Pleni­ potentiary, Permanent Representative to the United Nations Altel'nate Representatives Mr. Lennart Klackenberg, Head of Department, Ministry of Altenwte Represeatatives Finance Mr. Alejandro D. Yango, Minister, Permanent Mission Mr. Helge Berg, Director, Federation of Swedish Industries Mrs. Ernestina E. Kodikara, Attache, Permanent Mission Mr. BertH Bolin, Director for International Affairs, Swedish Mr. Francisco M. Rodriguez, Attache, Permanent Mission Confederation of Trade Unions ROMANIA Advisers Representative Mr. Lars Wettergren, Adviser, Economic Affairs, Permanent Mr. Dan Dumitrescu, Executive Office of the National Mission Council of Scientific Research Mr. Gunnar Hultner, First Secretary, Ministry for Foreign A /lemate Representatives Affairs Mr. Ion Moraru, Counsellor, Permanent Mission Mr. Mats Bergquist, Second Secretary, Permanent Mission 41 SWITZERLAND Mr. V. A. Meshcherin, State Planning Conunittee of the Representative Russian Soviet Federative Socialist Republic Mr. Bernard Turrettini, Ambassador, Permanent Observer Mr. T. F. Fedorov, USSR Academy of Sciences to the United Nations Altemate RepreseMative UNITED ARAB REpUBLIC Representative Mr. Max Dahinden, Second Secretary, Office of the Per­ Mr. Mahmoud Mohamed Salama, Under-Secretary of the manent Observer .~ THAILAND Ministry of Industry 1 Representative Alternate Representatives Mr. Anand Panyarachun, Counsellor, Charge d'affaires a.i., Mr. Abdel Halim Badawi, Counsellor, Permanent Mission Permanent Mission Mr. Nabil El Araby, Second Secretary, Permanent Mission Alternate Representatives UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND Mr. Padhna Barpuyawart, Inspector General and Acting Representative 'r Director of Industrial and Economic Planning Division, Min­ Sir Edward Warner, K.C.M.G., O.B.E., Minister, Permanent istry of Industry Mission Adviser Alter/late Represe1ltative Mr. Klos Visessurakarn, First Secretary, Permanent Mission Mr. S. Fryer, Assistant Secretary, Ministry of Overseas TRINIDAD AND TOBAGO Development Representative Advisers Mr. P. V. J. Solomon, Ambassador Extraordinary and Pleni­ Mr. John Leech, Commonwealth Development Corporation potentiary, Permanent Representative to the United Nations Miss Lucy Deas, Second Secretary, Permanent Mission Alternate RePresentatives Mr. C. A. Archibald, Minister-Counsellor, Deputy Permanent UNITED STATES OF AMERICA Representative to the United Nations Representatives Mrs. Sheilah Solomon, First Secretary, Permanent Mission Mr. Arthur E. Goldschmidt, Ambassador, Representative on Mr. Frank Thompson, Economist, Ministry of Planning and the Economic and Social Council (for the period 17-28 April) Development Mr. Waiter M. Kotschnig, Minister, Deputy Representative TURKEY on the Economic and Social Council, Deputy Assistant Secre­ Representative tary of State for International Organization Affairs (for the Mr. Nazif Cuhruk, Minister Plenipotentiary, Deputy Per­ period 10-16 April) manent Representative to the United Nations Alternate Representatives Altemate Representative Mr. Clarence I. Blau, Senior Adviser, Economic and Social Mr. Fikret Altinel, Deputy Under-Secretary of the Ministry Affairs, Permanent Mission of Industry Mr. William J, Stibravy, Director, Office of International Advisers Economic and Social Affairs, Department of State Mr. Mustafa Aksin, First Secretary of Embassy, Permanent Advisers Mission Mr. Robert B. Bangs, Business Defense Services Adminis­ Mr. Faruk Kirmizioglu, Industrial Expert, State Planning tration, Department of Commerce Organization Mr. Frederick G. Draper, Office of Technical Cooperation Mr. Turhan Firat, Second Secretary, Permanent Mission and Research, Agency for International Development Mr. John C. Griffith, Office of International Economic and UNION OF SOVIET SOCIALIST REPUBLICS Social Affairs, Department of State i Representative Mr. Robert W. Kitchen, J L, Special Adviser on Economic Mr. K. V. Ananichev, Olief, Department of International Development Programmes, Permanent Mission Economic, Scientific and Technical Organizations, State Com­ i mittee of the Council of Ministers on Science and Technology URUGUAY Altenlate Representatives Representative Mr. L. S. Lobanov, Counsellor, Permanent Mission ML Manuel Mendiola Mr. V. P. Kasatkin, Assistant Head of Department of Inter­ A Itemale Representative national Economic Organizations, Ministry of Foreign Affairs Mr. Felipe Montero, Counsellor, Permanent Mission Mr. O. A. Mikhailov, Chief Specialist, State Committee of the Council of Ministers on Science and Technology ZAMDIA Mr. V. A. Zaitsev, Academy of Sciences Representative Ad~>isers Mr. W. K. Sikalumbi, Trade Commissioner for Western Mr. M. M. Tarasov, Counsellor, Permanent Mission Europe Mr. N. S. Novikov, Counsellor, Adviser, Economic Affairs, Alternate Representatives Permanent Mission Mr. 1. R. B. Manda, First Secretary Mr. V. A. Yulin, Second Secretary, Permanent Mission Miss M. C. Campbell, Second Secretary, Permanent Mission Mr. I. N. Mosin, Third Secretary, Permanent Mission M'r. V. 1. Pirogov, Third Secretary, Permanent Mission Observers from member States I. Mr. N. Filimonov, Attache, Permanent Mission ALGERIA Mrs. N. G. Kulebyaldna, Permanent Mission Mr. S. A. Boldyrev, USSR State Committee for Science and Mr. Hocine Djoudi, Counsellor, Permanent Mission Technology Mr. Daho Rahmani, Attache, Permanent Mission Mr. V. A. Burmistrov, USSR State Committee for Science and Technology AUSTRALIA Mr. D. A. Manasov, Moscow Statistical Office Mr. J. A. Benson, Third Secretary, Permanent Mission 42 frffif' i~j~, cd BOliVIA ISRAEL Mr. Fernando Ortiz Sanz, Ambassador Extraordinary and Mr. Uzi I. Nedivi, Counsellor, Permanent Mission Plenipotentiary, Permanent Representative to the United Mr. A. Shai, Member, Consulate General, New York Nations JAMAICA Mr. Guillermo Scott Murga, Minister Counsellor, Permanent Mission Mr. William G. Whiting, United States Director, Jamaica BOTSWANA Industrial Development Corporation Mr. Probyn W. Aitken, Counsellor, Permanent Mission Mr. P. P. Makepe, First Secretary, Permanent Mission Mr. Donald Craig, Second Secretary, Permanent Mission BURMA LAOS ~aung ~ale, U Maung Counsellor, Deputy Permanent Re}lre­ Mr. Somboun Somphan11, Second Secretary, Permanent sentative to the U11lted Nations Mission U Ba Yin, Second Secretary, Permanent Mission LEBANON Mr. Walid Naja BYELORUSSIAN SOVIET SOCIALIST REPUBLIC LIBERIA Mr. G. G. Chernushchenko, Envoy Extraordinary and Mr. David M. Thomas, Consul General, New York Minister Plenipotentiary, Permanent Representative to the United Nations LIBYA Mr. I. F. Sidash, Second Secretary, Permanent Mission Mrr. Isa Babaa, Second Secretary, Permanent Mission Mr. Ali Attiga CAMBODIA MALAYSIA Mrs. Sam Sidareth, Second Secretary, Permanent Mission Mr. P. S. Lai, Counsellor, Permanent Mission CEYLQN Mr. B. P. Tilakaratna, Counsellor, Charge d'affaires a.i., MALTA Permanent Mission Mr. Alexander Agius Cesareo Second Secretary, Permanent Mission ' Mr. S. Gautamadasa, Second Secretary, Permanent Mission MAURITANIA

CHAD Mr. Ya,hia Cheikh Abdallahi, Second Seoretary, Permanent Mr. Boukar Abdoul, Ambassador Extraordinary and Pleni­ Mission potentiary, Permanent Representative to the United Nations MEXICO Mr. Alvaro Carranco Avila, First Secretary, Permanent CHINA Mission Mr. P. Y. Tsao, Adviser, Permanent Mission MONGOUA Mr. David T. Fu, Third Secretary, Permanent Mission Mr. Lutyn Chuluunbaatar, Counsellor, Permanent Mission

CONGO (BRAZZAVILLE) MOROCCO Mr. Jean Mombouli, Senior Counsellor, Permanent Mission Mr. Ahmed Taibi Benhima, Ambassador Extraordinary and Plenipotentiary, Permanent Representative to the United CONGO (DEMOCRATIC REpUBLIC OF) Nations Mr. S. Mulongo, First Secretary, Permanent Mission NEPAL Mr. Bernard Louya, First Secretary, Permanent Mission Mr. Devendra Raj Upadhya, Counsellor, Permanent Mission NEW ZEALAND CYPRUS Mr. B. J. Lynch, Second Secretary, Permanent Mission Mr. Nicos Agathoc1eol1s, First Secretary, Permanent Mission NIGER DENMARK Mr. Soumana Ousseini, First Secretary, Permanent Mission Mr. Bj16rn Olsen, Counsellor of Embassy, Permanent Mission NORWAY DOMINICAN REPUBLIC Mr. Petter Svennevig, First Secretary, Permanent Mission Mr. Francisco Subero, Minister Counsellor, Permanent Mr. Bernt Stangholm, First Secretary, Permanent Mission Mission ECUADOR PANAMA Mr. Hugo Jativa, Counsellor, Permanent Mission Mr. Manue1 Varela, Jr., Ambassador Extraordinary and Plenipotentiary, Alternate Permanent Representative to the EL SALVADOR United Nations Mr. Roberto Trigueros Larraondo, Consul General, New York POLAND Mr. Jose Martino Sigui, Third Secretary, Permanent Mission Mr. Wladyslaw Neneman, First Secretary, Permanent Mis- sion GABON PORTUGAL Mr. Polycarpe Makaya-Castanoul, First Secretary, Permanent Mr. Duarte Vaz Pinto, First Secretary, Permanent Mission Mission GREECE SENEGAl. Mr. Ion K. Collas, First Secretary, Permanent Mission Mr. Charles De1gado, First Secretary (Jf Embassy, Economic Affairs, Permanent Mission HUNGARY Mr. 1£ikl6s Endreffy, Attache, Permanent Mission SOUTH AFRICA M1'. A. E. van Niekerk, Third Secretary, Permanent Mission ICELAND Mr. Haraldur Kroyer, Deputy Permanent Representative SYRIA Mr. Abdullah El-Attrash, Second Secretary, Permanent IIAQ Mission Mr. Burhan M. Noud, First Secretary, Permanent Mission ToGO Mr. Riyadh T. Ali, Second Secretary, Permanent Mission Mr. Raphael Klu, First Secretary, Permanent Mission 43 TUNISIA Mr. M. Greene, Assistant Director, Liaison Office with the Mr. Hamdane Ben Aissa, First Secretary, Permanent Mission United Nations United N atiotls Educational, Scientific and Cltltflral UKRAINIAN SOVIET SOCIALIST REpUBLIC Organiza tion Mr. Y. N. Kochubei, First Secretary, Permanent Mission Mr. A. Noor Kassum, Director, New York Office Mrs. Betty Thomas, Liaison Officer, New York Office UNITED REPUBLIC OF TANZANIA Miss Roth Barret, New York Office Mr. W. E. Waldron-Ramsey, Counsellor, Permanent Mission Wodd Health Organization UPPER VOLTA Dr. R. L. Coigney, Director, Liaison Office with the United M;r. Paul T. Rouamba, Ambassador Extraordinary and Nations Plenipotentiary, Permanent Representative to the United Mrs. Vera KaIm, Liaison Office with the United Nations Nations Mr. Pierre J Sanon, First Secretary, Permanent Mission International Bank for Reconstmction and Development Intemational Development Association YUGOSLAVIA Intef11atiotwl Fil1al1ce Corporatt'ol1 Mr. Grga Lavcevic, Counsellor of State for Foreign Affairs Mr. James S. Raj, Deputy Executive Vice-President, Inter­ Mr. Ante Skataretiko, Counsellor, Permanent Mission national Finance Corporation United Nations Mr. Lewis Perinbam, Liaison Officer United Nations Sl!cretariat Interlwtional Monetary Fund Department of Ecollomic and Social Affairs Mr. Gordon Williams, Special Representative to the United Mr. Martin Hill, Under-Secretary for Inter-Agency Affairs Nations Mr. Karl E. Lachmann, Chief, Fiscal and Financial Branch Mr. Joseph W. Lang, Jr., Department of the Secretary Economic Commission for Aftica Mr. Alan Wright, Department of the Secretary Mr. B. D. Nomvete, Di'l'ector, Industry Division Inter-Governmental Maritt'me COllsultative Organization Mr. Colin Goad, Deputy Secretary-General United Nations Conference on Trade and Development >I< Mr. Robert Muller, Special Adviser on Technical Assistance * >I< Co-ordination lI~tertlational Atomic Energy Agency Mr. Harry Stordel, Deputy Director, Manufactures Division Mr. Evgueni Piskarev, Director, Liaison Office with the United Nations Development Programme United Nations Mr. R. Heurtematte, Associate Administrator Mr. Robert Najar, Liaison Office with the United Nations Mr. A. Harland, Chief, Industry and Technology Section >I< Mr. M. H. N. Geoghegan, External Relations Officer, Division * >I< for External Relations Interim C011l1llission for the Intemational Trade Orgal1isation (ICITO): General Agreement on Tariffs atld Trade (GATT) W orld Food Programme Mr. G. Hortling, Counsel1or, Department of External Mr. Marc Nerfin, Liaison Officer with the United Nations Relations Specialized agencics Intergovernmental organizations International Labour Organisation United Internationol Bureau•..; for the Protection of Intel­ Mr. Abbas Ammar, Deputy Director-General lectllal Property (BIRPI) Mr. B, Fortin, Chief, Programme and Research Section, Mr. R. WoodIey, Senior Counsellor for Relations with In­ Human Resources Department ternational Organizations Mr. F. Abdel Rahman, Director a,i., Liaison Office with Non-governmental organizations the United Nations Category A Mrs. M. Tanco de Lopez, Liaison Office with the United Nations International Chamber of COlllmerce Mr. Christopher H. Phillips, President, United States Food and Agrimlture Orgcl1Iizotiolt of the United Nations Council of the ICC Mr. D. W. Woodward, Director, Liaison Office with the Mrs. Roberta M. Lusardi, Executive Secretary, New York United Nations Office. Mr. A. Aten, Technical Officer, Industrialization Technical World Federation of Trade Unions Department Mr. Brian Barton

Annex IT

GENERAL ASSEMBLY RESOLUTION 2152 (XXI) OF 17 NOVEMBER 1966 ESTABLISHING THE UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION

[For the text of General Assembly resolution 2152 (XXI) of 17 November 1966, see Official Records of the General Assembly, Twenty-first Session, Supple­ ment No. 16, page 24.]

44 - Annex m

ESTABLISHMENT OF THE HEADQUARTERS AT VIENNA

A. AGREEMENT BETWEEN THE UNITED NATIONS AND THE RE­ (i) The expression "General Conventions" means the Con­ PUBLIC OF AUSTRIA REGARDING THE HEADQUARTERS OF THE vention on the Privileges and Immunities of the United UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION&' Nations approved by the General Assembly of the United The United Natiolls and tile Republic of Austria, Nations on 13 February 1946. COl/siderillg that the United Nations General Assembly, by resolutions 2089 (XX) and 2152 (XXI) of 20 December 1965 Article II and 17 November 1966, has established the United Nations In­ dustrial Development Organization as a subsidiary organ of THE HEADQUARTERS SEAT the General Assembly of the United Nations and, in response Sl!cliOH 2 to an offer by the Republic of Austria, has, by resolution 2212 (XXI) of 17 December 1966, decided to establish the head­ (a) The permanent headquarters of the UNIDO shall be quarters of that organization at Vienna; in the headquarters seat, and shaH not be removed therefrom Considerillg that the Convention on the Privileges and unless the United Nations should so decide. Any transfer Immunities of the United Nations adopted by the General of the headquarters temporarily to another place shall not Assembly of the United Nations on 13 February 1946, to which constitute a removal of the permanent headquarters unless the Republic of Austria is a party, is ipso facio applicable to there is an express decision by the United Nations to that t\;e United Nations Industrial Development Organization; effect. Considrring that it is desirable to conclude an agreement, (b) Any building in or outside of Vienna which may be complementary to the Convention on the Privileges and Im­ used with the concurrence of the Government for meetings munities of the United Nations, to regulate questions not convened by the UNIDO shall be temporarily included in the envisaged in that Convention arising as a result of the establish­ headquarters seat. ment of the headquarters of the United Nations Industrial (c) The appropriate Austrian authorities shaH take whatever Development Organization at Vienna; action may be necessary to ensure that the UNIDO shall not be dispossessed of all or any part of the headquarters seat H a'lle agl'eed as follows: without the express consent of the United Nations. Article I Sectioa 3 DEFINITIONS Section 1 The Government grants to the UNIDO, and the UNIDO In this Agreement, acccpts from the Government, the permanent use and occupation of a headquarters seat as may from time to time be defined (a) The expression "the UNIDO" means 'the United in supplemental agreements to be concluded between the Nalions Industrial Development Organization; UNIDO and the Government. (b) The expression "the Government" means the Federal Government of the Republic of Austria; Sectioa 4 (c) The expression "Executive Director" means the Ex­ (a) The United Nations shall for official purposes :have ecutive Director of the UNIDO or any officer designated to the authority to install and operate a radio sending and act on his behalf; receiving station or stations to connect at appropriate points (d) The expression "appropriate Austrian authorities" means and exchange traffic with the Unitcd Nations radio net­ such federal, state, municipal or other authorities in the work. The United Nations as a telecommunications ad~ Republic of Austria as may be appropriate in the context and ministration will operate its telecommunications services in in accordance with the laws and customs applicable in the accordance with the International Telecommunication Conven­ Republic of Austria; tion and the Regulations annexed thereto. The frequencies (e) The expression "laws of the Republic of Austria" in­ used by these stations will be communicated by the United cludes: Nations to the Government and to the International Frequency (i) The federal constitution and state constitutions; and Registration Board. (ii) Legislative acts, regulations and orders issued by or (b) The Government shall, upon request, grant to the under authority of the Government or appropriate UNIDO for official purposes appropriate radio and other Austrian authorities; teleconununications facilities in conformity with technical (f) The exprcssion "headquarters seat" means: arrangements to be made with the International Telecom­ munication Union. (i) The headquartcrs area with the building or buildings upon it, as may from timc to time be defined in the supplemental agreements referred to in scction 3; and Section 5 (ii) Any other land or building which may from time to The UNIDO may establish and operate research, documenta­ time be included, temporarily or permanently, therein tion and other technical facilities of any type. These facilities iu accordance with this Agreement or by supplemental shaH be subject to appropriate safeguards which, in the case agreement with the Government; of facilities which might create hazards to health or safety (g) The expression "Member State" means a State which or interfere with property, shall be agreed with the appropriate is a Member of the United Nations, or a member of one of Austrian authorities. the specia1ized agencics, or a member of the International Atomic Energy Agcncy; Sectioa 6 (h) The expression "officials of the UNIDO" means the The facilities provided for in sections 4 and 5 may, to Executive Director and all members of the staff of the UNIDO the extent necessary for efficient operation, be established except those who are locally recruited and assigned to hourly and operated outside the headquarters area. The appropriate rales; Austrian authorities shall, at the request of the UNIDO. make arrangements, on such terms and in such manner as may a The Agreement entered into force on 7 July 1967 upon an be agreed upon by supplemental agreement, for the acquisition exchange of notes between the Secretary-General of the United or use by the UNIDO of appropriate premises for such Nations and the duly authorized representative of the Federal Republic of Austria, as provided for in Article XV, section 47, purposes and for the inc!usi

PROTECTION OF THE HEADQUARTERS SEAT Section 14 (a) The Government recognizes the right of the UNIDO Section 10 freely to publish and broadcast within the Republic of Austria (a) The appropriate Austrian authorities shall exercise due in the fulfilment of its purpose. diligence to ensure that the tranquillity of the headquarters seat (b) It is, however, understood that the UNIDO shall is not disturbed by any person or group of persons attempting respect any laws of the Republic of Austria, or any interna­ unauthorized entry into or creating disturbances in tbe im­ tional conventions to which the Republic of Austria is a party, mediate vicinity of the headquarters seat, and shall provide relating to copyrights. on the boundaries of the headquarters seat such police protec­ tion as may be required for these purposes. Section 15 (b) If so requested by the Executive Director, the ap­ The UNIDO shall be entitled for its official purposes to propriate Austrian authorities shall provide a sufficient number use the railroad facilities of the Government at tariffs which of police for the preservation of Law and order in the head­ shall not exceed the lowest comparable passenger fares and quarters seat. freight rates accorded to Austrian governmental administrations. 46 .. Article Vll Article IX

FREEDOM FROM TAXATION SOCIAL SECURITY AND PENSION FUND Section 16 Section 18 (a) The UNIDO, its assets, income and other property The United Nations Joint Staff Pension Fund shall enjoy shall be exempt from all forms of taxation, provided, however, legal capacity in the Republic of Austria and shaIl enjoy the that such tax exemption shall not extend to the owner or same exemptions, privileges and immunities as the UNIDO lessor of any property rented by the UNIDO. itself. (b) In so far as the Government, for important adminis­ Section 19 trative considerations, may be unable to grant to the UNIDO The UNIDO shall be exempt from all compulsory contri!J.u­ exemption from indirect taxes which constitute part of the tions to, and officials of the UNIDO shall not be required by cost of goods purchased by or services rendered to the UNIDO, the Government to participate in, any social security scheme including rentals, the Government shall reimburse the UNIDO of the Republic of Austria. for such taxes by the payment, from time to time, of lump sums to be agreed upon by the UNIDO and the Government. Section 20 It is, however, understood that the UNIDO will not claim The Government shall make such provision as may be neces­ reimbursement with respect to minor purchases. With respect sary to enable any official of the UNIDO who is not afforded to such taxes, the UNIDO shall at all times enjoy at least social security coverage by the UNIDO to participate, if the the same exemptions and facilities as are granted to Austrian UNIDO so requests, in allY s'Ocial security scheme of the governmental administrations or to chiefs of diplomatic missions Republic of Austria. The UNIDO shaIl, in so far as possible, accredited to the Republic of Austria, whichever are 'the more arrange, under conditions to be ag1"eed upon, for the participa­ favourable. It is further understood that the UNIDO will tion in the Austrian social security system of those locally not claim exemption from taxes which are in fact no more recruited members of its staff who do not participate in the than charges for public utility services. United Nations Joint Staff Pension Fund or to whom UNIDO (c) All transactions to which the UNIDO is a party, and does not grant social security protection at least equivalent all documents recording such transactions, shall be exempt to that offered under Austrian law. from all taxes, recording fees, and documentary taxes. (d) Articles imported or exported by the UNIDO for official A1'Iicle X purposes shall be exempt from customs duties and other levies, TRANSIT AND RESIDENCE and from prohibitions and restrictions on imports and exports. Sec/ion 21 (e) The UNIDO shall be exempt from customs duties and other levies, prohibitions and restrictions on the importation (a) The Government shaIl take all necessary measures to of service automobiles, and spare parts thereof, required for facilitate the entry into and sojourn in Austrian territory and its official purposes. shaIl place no impediment in the way of the departure from Austrian territory of the persons listed below; it shaIl ensure (f) The Government shall, if requested, grant allotments of that no impediment is placed in the way of their transit to or gasoline or other fuels and lubricating oils for each such from the headquarters seat and shall afford them any necessary automobile operated by the UNIDO in such quantities as are protection in transit: required for its work and at such special rates as may be established for diplomatic missions in the Republic of Austria. (i) Members of permanent missions and other representa­ tives of Member States, their families and other mem­ (g) Articles imported in accordance with sub-sections (d) bers of their households, as well as clerical and other and Ce) or obtained from the Government in accordance with auxiliary personnel and the spouses and dependent sub-section (f) of this section, shall not be sold by the UNIDO children of such personnel; in the Republic of Austria within two years of their importa­ tion or acquisition, unless otherwise agreed upon by the (ii) Officials of the UNIDO, their families and other Government. members of their households; (Hi) Officials of the United Nations or of one of the specialized agencies or of the International Atomic Article VIII Energy Agency, attached to the UNIDO, and those FINANCIAL FACILITIES who have official business with the UNIDO, and their spouses and dependent children; Section 17 (iv) Representatives of other organizations, with which the (a) Without being subject to any financial controls, regula­ UNIDO has established official relations, who have official business with the UNIDO; tions or moratoria of any kind, the UNIDO may freely: (v) Persons, other than officials of the UNIDO, performing (i) Purchase any currencies through authorized channels missions authorized by the UNIDO or serving on and hold and dispose of them; committees or other subsidiary organs of the UNIDO, (ii) Operate accounts in any currency; and their spouses; (ill) Purchase through authorized channels, hold and dispose Cvj) Representatives 'Of the press, radio, film, television or of funds, securities and gold; other information media, who have been accredited (iv) Transfer its funds, securities, gold and currencies to or to the UNIDO in its discretion after consultation with from the Republic of Austria, to or from any other the Government; country, or within the Republic of Austria; and (vii) Representatives of other organizations or other persons (v) Raise funds through the exercise of its borrowing power invited by the UNIDO to the headquarters seat on or in any other manner which it deems desirable, official husiness. The Executive Director shall com­ except that with respect to the raising of funds within municate the names of such persons to the Govern­ the Republic of Austria, the UNIDO shall obtain the ment before their intended entry. concurrence of the Government. (b) This section shaIl not apply in the case of general in­ (b) The Government shall assist the UNIDO to obtain the terruptions of transportation, which shall be dealt with as most favourable conditions as regards exchange rates, banking provided in section 12 Cb) and shall not impair the effectiveness commissions in exchange transactions and the like. of generaIly applicahle laws relating to the operation of means of transportation. Cc) The UNIDO shall, in exercising its rights under this section, pay due regard to any representations made by the (c) Visas, where required for persons referred to in this Government in so far as effect can be given to such representa­ section, shall be granted without charge and as promptly tions without prejudicing the interests of the UNIDO. as pass ible. 47 (d) No activity performed by any person referred to in to the Republic of Austria the following privileges and im· sub-section (a) in his official capacity with respect to the munities: UNIDO shall constitute a reason for preventing his entry (a) Immunity from legal process of any kind in respect into or his departure from the territory of the Republic of of words spoken or written, and of acts performed by them Austria or for requiring him to leave such territory. in their official capacity; such immunity to continue notwith­ (e) No person referred to in sub-section (a) shall be standing that the persons concerned may have ceased to be required by the Government to leave the. Republic o.f Austr~a officials of the UNIDO; save in the event of an abuse of the right of residence, m (b) Immunity from seizure of their personal and official which case the following procedure shall apply: baggage; (i} No proceedings shall be instituted to require any such (c) Immunity from inspection of official baggage, and if the person to leave the Republic of Austria except with the official comes within the scope of section 28, immunity from prior approval of the Federal Minister for Foreign inspection of personal baggage; i Affairs of the Republic of Austria; (d) Exemption from taxation in respect of the salaries, -I, (H) In the case of a representative of a Member State, such emoluments, indemnities and pensions paid to them by the approval shall be given only after consultation with the UNIDO for services past or present or in connexion with Government of the Member State concerned; their service with the UNIDO; (Hi) In the case of any other person mentioned in sub­ (e) Exemption from any form of taxation on income derived section (a), such approval shall be given only after by them from sources outside the Republic of Austria; I' consultation with the Executive Director, and if ex­ (f) Exemption, with respect to themselves, their spouses, pulsion proceedings are taken against any such person, their dependent relatives and other members of their households the Executive Director shall have the right to appear from immigration restrictions and alien registration; or to be represented in such proceedings on behalf (g) Exemption from national service obligations, provided of thc person against whom such proceedings are in­ that, with respect to Austrian nationals, such exemption shall stituted; and be confined to officials whose names have, by reason of their (iv) Persons' who are entitled to diplomatic privileges and duties, been placed upon a list compiled by the Executive immunities under section 28 shall shall not be required Director and appToved by the Government; provided further to leave the Republic of Austria otherwise than in that should officials, other than those listed, who are Austrian accordance with the customary procedure applicable nationals, be called up for national service, the Government 1­ to members, having comparable rank, of the staffs of shall, upon request of the Executive Director, grant such ~ chiefs of diplomatic missions accredited to the Republic temporary deferments in the call-up of such officials as may of Austria. be necessary to avoid interruption of the essential work of the (f) This section shall not prevent the requirement of reason­ UNIDO; able evidence to establish that persons claiming the rights (h) Freedom to acquire or maintain within the Republic granted by this section come within the classes described in of Austria or elsewhere foreign securities, foreign currency sub-section (a), or the reasonable application of quarantine accounts, and other movable, and, under the same conditions and health regulations. applicable to Austrian nationals, immovable property; and at Section 22 the termination of their UNIDO employment, the right to take out of the Republic of Austria through authorized channels The Executive Director and the appropriate Austrian author­ without prohibition, or restriction, their funds in the same ,I ities sha:ll, at the request of either of them,consult as to currency and up to the same amounts as they had brought methods of facilitating entrance into the Republic of Austria, into the Repubtic of Austria. and as to the use of available means of transportation, by persons coming from abroad who wish to visit the head­ Cl) The same protection and repatriation facilities with quarters seat and who do not enjoy the privileges provided respect to themselves, their spouses, their dependent relatives and other members of their households as are accorded in by section 21. time of international crisis to members, having comparable Article Xl rank, of the staffs of chiefs of diplomatic missions accredited -I REPRESENTATIVES TO THE UNIDO to the Republic of Austria; and Section 23 (j) The right to import for personal use, free of duty and ""' Representatives of Member States to meetings of or con­ other levies, prohibitions and restrictions on imports: vened by the UNIDO, and those who have official business (i) Their furniture and effects in one or more separate with the UNIDO, shall, while exercising their functions and shipments, and thereafter to import necessary additions during their journey to and from Austria, enjoy the privileges to the same; and immunities provided in article IV of the General Con. (ii) One automobile every four years; and vention. (iii) Limited quantities of certain articles for personal use Section 24 or consumption and not for gift or sale; the UNIDO Members of permanent mlSSlons to the UNIDO shall be may establish a commissary for the sale of such articles entitled to the same privileges and immunities as the Govern­ to its officials and members of delegations. A supple­ ment accords to members, having comparable rank, of diplomatic mental agreement shall be concluded between UNIDO missions accredited to the Republic of Austria. and the Government to regulate the exercise of these rights. Section 25 Permanent missions to the UNIDO of States Members of Section 28 the Industrial Development Board and those of Member States In addition to the privileges and immunities specified in shall enjoy the same privileges and immunities as are ac· section 27: corded to diplomatic missions in the Republic of Austria. (a) The Executive Director shall be accorded the privileges \: i Section 26 and immunities, exemptions and facilities accorded to Ambas· sadors who are heads of missions; I The UNIDO shall communicate to the Government a list of persons within the scope of this article and shall revise such Cb) A senior official of the UNIDO, when acting on behalf list from time to time as may be necessary. of the Executive Director during his absence from duty, shall be accorded the same privileges and immunities, ex­ emptions and facilities as are accorded to the Executive Article XII Director; and OFFICIALS OF THE UNIDO (c) Other officials having the professional grade of P-5 Section 27 and above, and such additional categories of officials as may Officials of the UNlDO shall enjoy within and with respect be designated, in agreement with the Government, by the 48 from taxation on their salaries and emoluments received from Executive Director in consultation with the Secretary-General the UNIDO ~uring such periods of duty and shaH be exempt of the United Nations on the ground of the responsibilities of from all touust taxes. their positions in the UNIDO, shall be accorded the same privileges and immunities, exemptions and facilities as the Secticn 33 Government accords to members, having comparable rank, (a) The UNIDO shall communicate to the Government a '\ of the staffs of chiefs of diplomatic missions accredited to list of persons within the scope: of this article and shall revise J: the Republic of Austria. such list from time to time as may be necessary. Section 29 (b) The Government shall furnish persons within the scope (a) The UNIDO shall communicate to the Government of this article with an identity card bearing the photograph of a list of officials of the UNIDO and shall revise such list the holder. This card shall serve to identity the holder in from time to time as may be necessary. relation to all Austrian authorities. (b) The Government shall furnish persons within the scope r of this article with an identity card bearing the photograph Artide XIV of the holder. This card shall serve to identify the holder SETTLEMENT OF nrSPUTES in relation to all Austrian authorities. Sectio,~ 34 Section 30 The UNlDO shall make provision for appropriate methods The provisions 0 f this article shall apply to other officials of of settlement of: the United Nations who are attached to the UNIDO or to (a) Disputes arising out of contracts and disputes of a other United Nations offices set up with the consent of the private law character to which the UNIDO is a party i and Government in the Republic of Austria. They shall also apply (b) Disputes involving an official of the UNIDO who. to officials of the specialized agencies and the International by reason of his official position, enjoys immunity, if such (" Atomic Energy Agency attached to the UNIDO on a con­ immWlity has not been waived. tinuing basis. ! '... Section 35 Article XIII (a) Any dispute between the UNIDO and the Government concerning the interpretation or application of this Agnement EXPERTS ON MISSION FOR UNIDO \ or of any supplemenlal agreement, or any question affecting Section 31 the headquarters seat or the relationship between the UNIDO Experts (other than officials of the UNIDO coming within and the Government, which is not settled by negotiation or the scope of article XII) perfonning missions authorized by, other agreed mode of settlement, shall be referred for final serving 00 committees or other subsidiary organs of, or decision to a tribunal of three a.rbitrators: one to be chosen 1I \- consulting at its request in any way with, the UNIDO shall by the Executi\'e Director, one to be chosen by the Federal enjoy, within and with respect to the Republic of Austria, the Minister for Foreign Affairs of the Republic of Austria, following privileges and immunities so far as may be necessary and the third, who shall be chairman of the tribunal, to be \ for the effective exercise of their functions: chosen by the first two arbitrators. Should the first two (a) Immunity in respect of themselves, their spouses and arbitrators fail to agree upon tlle third within six months ( their dependent children from personal arrest or detention following the appointment of tile first two arbitrators, such and from seizure of their personal and official baggage; third arbitrator shall be chosen by the President of the In­ (b) Immunity from legal process of any kind with respect ternational Court of Justice at the request of the UNIDO to words spoken or WIl"itten, and all acts done by them, in or the Government. l the performance of their official functions, such immunity (b) The Secretary-General of the United Nations or the to continue notwithstanding that the persons concerned may Government may ask the General Assembly to request of the no longer be employed on missions for, serving on committees International Court of Justice an advisory opinion on any of, or acting as consultants for, the UNIDO, or may no longer kgaI question arising in the course of such proceedings. Pending be present at the headquarters seat or attending meetings the receipt of the opinion of the Comt, an interim decision convened by the UNIDO; of the arbitral tribunal shall be observed by both parties. (c) Inviolability of all papers, documents and other official Thereafter, the arhitral tribllnal shall render a final decision. material; having regard to the opinion of the Courl (d) The right, for the purpose of all communications with the UNIDO, to use codes and to dispatch or receive papers, Arlid~ XV correspondence or other official material by courier or in GENF.RAI. I'RO\'ISIONS sealed bags; Section 36 (e) Exemption with respect to themselves and their spouses The RepubHc of Austria shall not incur by reason of the from immigration restrictions, alien registration and national location of the headquarters seat of the UNIDO within its service obligations i territory any inlernational resf/Onsibility for acts or omissions (I) The same protection and repatriation facilities with of the UNI DO or of its officials acting or abstaining from respect to themselves, their spouses, their dependent relatives acting within the scope of their functions, other than the and other members of their households as are accorded in time international responsihility which the Republic of Austria of international crisis to members, having comparable rank, would incur as a },[embcr of the United Nations. of the staffs of chiefs of diplomatic missions accredited to Sect1'on 37 the Republic of Austria; Without prejudice 10 the privileges and immunities accorded (g) The same privileges with respect to currency and by this Agreement, it is the duly of all persons enjoying exchange restrictions as are accorded to representatives of such privileges and immunities to respect the laws and regular foreign Governments on temporary official missions; and ~ions of the Republic of AustriQvernment consider that an abuse of a of residence. In particular, such persons shall be exempt privilege or immunity conferred by this Agreement has oc- 49 curred the Executive Director shall, upon request, consult B. EXCHANGE OF NOTES BETWEEN THE UNITED NATIONS AND with the appropriate Austrian authorities to determine whether THE REPUBLIC OF AUSTRIA OF 13 AplUL 1967 any such abuse has occurred. If such consultations fail to 1. The Under-Secretary of State for Foreign Affairs of the achieve a result satisfactory to the Executive Director and to Republic of Austria to the Secretary-General of the United the Government, the matter shall be determined in accordance Nations with the procedure set out in section 35. New York, 13 April 1967 S~ction 39 Sir, This Agreement shall apply irrespective of whether the With reference to the Agreement between the United Nations Government maintains or does not maintain diplomatic relations and the Republic of Austria regarding the Headquarters of with the State concerned and irrespective of whether the State the United Nations Industrial Development Organization, to concerned grants a similar privilege or immunity to diplomatic which I have this day affixed by signature, I have the honour envoys or citizens of the Republic of Austria. to propose that: Section 40 (1) In accordance with the Financial Regulations of the Whenever this Agreement imposes obligations on the ap­ United Nations, the articles mentioned in paragraph (g) of proJ>riate Austrian authorities, the ultimate responsibility for section 16 of this Agreement may be disposed of without the fulfilment of such obligations shall rest with the Gov­ charge only for the benefit of international organizations or ernment. charitable institutions. Section 41 (2) Having regard to article 38 (1) of the Vienna Con­ The provisions of this Agreement shall be complementary vention on Diplomatic Relations and to the practice of Austria, to the provisions of the General Convention. In so far as any the Republic of Austria will accord members of permanent provision of this Agreement and any provision .of the General missions referred to in section 24 of the Agreement, who Convention relate to the same subject matter, the two provisions are Austrian nationals or stateless persons resident in Austria, shall, wherever possible, be treated as complementary, so that only the immunity from legal process of every kind in respect both provisions shall be applicable and neither shall narrow of words spoken or written and all acts done by them in their the effect of the other. capacity as members of permanent missions. Sectiol~ 42 (3) Officials of the UNIDO or other United Nations organs This Agreement shall be construed in the light of its primary or experts on missions for the United Nations who are Austrian purpose of enabling the UNIDO at its headquarters in the nationals and stateless persons resident in Austria shall enjoy Republic of Austria fully and efficiently to discharge its only those privileges and immunities provided in the General responsibilities and fulfil its purposes. Convention, it being understood, nevertheless, that such privi­ leges and immunities include exemption from taxation on Section 43 pensions paid to them by the Pension Fund of the United Consultations with respect to modification of this Agreement Nations. shall be entered into at the request of the United Nations or the Government. Any such modification shall be by mutual In addition, officials of UNIDO who are Austrian nationals consent. or stateless persons resident in Austria shall have access to the commissary to be established in accordance with paragraph Section 44 (j) (iH) of section Z1 of the Agreement, the exercise of The UNIDO and the Government may enter into such sup­ this right being regulated by the supplemental agreement as plemental agreements as may be necessary. envisaged in the above-mentioned provision of the Agreement. Section 45 (4) In accordance witl, the practice of the Republic of This Agreement shall apply, mutCltis mutandis, to other Austria which is in conformity with article 42 of the Vienna offices of the United Nations set up with the consent of the Convention on Diplomatic Relations to which Austria is a Government in the Republic of Austria. party, diplomatic agents accredited to the Republic of Austria Section 46 may not practise for personal profit any professional or This Agreement shall cease to be in force: commercial activity. It is understood that the same restriction shall apply to all persons to whom the Agreement accords the (i) By mutual consent of the United Nations and the Gov­ same privileges and immunities as are accorded to members, ernment; or having comparable rank, of dil)lomatic missions in the Re· (ii) If the permanent headquarters of the UNIDO is public of Austria. removed from the territory of the Republic of Austria, except for such provisions as may be applicable in (5) Persons to whom the Agreement applies, who are connexion with the orderly termination of the operations not Austrian nationals or stateless persons resident in Austria, of the UNIDO at its permanent headquarters in the shall not benefit from Austrian regulations on allowances Republic of Austria and the disposal of its property for children. therein. (6) Without prejudice to the provisions of sections 18 (e) Section 47 and 22 (e) of the General Convention and section 27 (h) of the Agreement, officials and experts of UNIDO shall be This Agreement shall enter into force upon an exchange of allowed, over and above the facilities granted by the Agreement, notes hetween the Secretary-General of the United Nations to make transfers to other countries up to a maximum amount and the duly authorized representative of the Federal President of one thousand U.S. dollars (U.S. $1,000.00) per year, to of the Republic of Austria. the debit of accounts in Austrian Schilling held in their names DONE at New York, in duplicate, in the English and German at Austrian credit institutions. If officials or experts of the languages, hoth being equally authentic, on this thirteenth UNIDO wish to make Austrian currency transfers exceeding day of April 1967. the amount mentioned above, such transfers shall be authorized FOR THE UNITED NATIONS: by the Austrian authorities up to the amount of all salary previously received in Austrian currency by the person con­ On behalf of the Secretary-General cerned from the UNIDO, provided that the UNIDO agrees (Signed) C. A. STAVROPOULOS that the amount to be transferred shall be deducted from Under-Secretary transferable Austrian currency balances of the UNIDO. Legal Counsel If the United Nations agrees to this proposal, I have the FOR THE REPUIlLIC OF AUSTIUA: honour to propose that this note and your note of confirmation (Sl:gned) Carl H. BODI..ETER shall constitute an Agreement hetween the Republic of Austria Umler-Secrelary of State and the United Nations, entering into force on the same day for Foreign Affairs as the Headquarters Agreement. 50 Accept, Sir, the renewed assurances of my highest con­ will work tirelessly, will be the best way in which we can sideration. express to your Government our appreciation for the services His Excellency and other facilities which it spontaneously offered to make U THANT available to the United Nations in general and UNIDO in United Nations particular. New York, N. Y. (Signed) Moraiwid TELL (Signed) Carl H. BOBLETER President Under-Secretary of State D. STATEMENT MADE BY MR. C.A.RI. BOBLE'fER, UNDER-SECRETARY for Foreign Affairs OF STATE FOR FOREIGN AFFAIRS OF AUSTRIA, AT THE 3RD MEETING OF THE BOARD, ON 11 APRIL 1967 2. The Legal Counsel of the United Nations to the Under­ Secretary of State for Foreign Affairs of the Repttblic Mr. President, may I, at the outset, express to you my very of Attstria sincere and heartfelt congratulations on your election, which New York, 13 April 1967 proves again the great confidence and esteem this assembly Sir, places in y

1. The Committee held five meetings between 11 and 20 regular session of the Board shall be held, subject to the April 1967. provisions of rule 3, at a date fixed by the Board at the 2. The Committee unanimously elected Mr. Jan MuZlk previous session in such a way as to enable the General (Czechoslovakia) Chairman and Dc Mohamed Warsama (So­ Assembly to consider the annual report of the Board in the malia) Vice-Chairman and Rapporteur. same year." 3. The Committee had before it a number of amendments, 12. Rule 3 of the draft rules of procedure was approved by submitted by a group of twenty-five countries, referred to the Committee. as the "Group of Twenty-Five"," to the draft rules of procedure 13. The Committee had before it a new rule 4 proposed by prepared by the Secretariat (ID/B/2) (see the appendix to the Group of Twenty-Five under the sub-heading of "Place this annex). The Committee decided to proceed with a reading of regular sessions", to read: "Regular sessions shall be held of the draft rules, one by one, the sponsors of amendments in­ at the headquarters of the United Nations Industrial De­ troducing each amendment and the Committee deciding, when­ velopment Organization, unless otherwise decided by the eVllr possible, on the approval of each rule. It was understood Board at a previous session." The que;tion was raised as to that representatives could propose amendments orally or in whether special sessions should also be included in this provi­ writing and that they could reserve their position should they sion. It was pointed out in answer that special sessions would not agree with the text of a rule approved by the Committee. normally be held at headquarters but, in view of their urgent 4. An amendment to rule 1 had been submitted by the character, may have to be held outside the headquarters of Group of Twenty-Five, which would replace it by the following the organization, The new rule 4 was approved by the Com­ text: "The Industrial Development Board shall hold at least mittee. one regular session a year." 14. The Committee then considered rule 4 of the draft rules 5. The sponsors of the amendment stressed that there was, of procedure (to be renumbered rule 5). The Committee had in fact, no difference of substance between the original text before it an amendment submitted by the Group of Twenty­ and the proposed amended text of rule 1. Five by wh ich sub-item 1 (c) would be deleted and paragraph 6. Draft rule 1, as proposed in document ID/B/2, was 2 redrafted as follows: identical with the wording contained in section Il, paragraph "Special sessions may also be requested by: 11, of General Assembly resolution 2152 (XXI). The sponsors "(a) The Economic and Social Council; of the amendment pointed out that-as one representative had stated-in the same resolution the General Assembly had "(b) The President of the Board, in consultation with the also inserted a provision (section n, paragraph 7 (h)) to the Executive Director; effect that the Board was to report annually to the General "(c) Ten States Members of the United Nations or mem­ Assembly through the Economic and Social Council. Con­ bers of the specialized agencies or of the International sequently, according to the sponsors, the word "normally" in Atomic: Energy Agency, whether or not they are paragraph 11 of the General Assembly resolution could only members of the Board. be interpreted to mean that the Board was to hold "at least" one "In such cases, the Executive Director shall immediately regular session a year. This was a logical interpretation, since inform all members of the Board of the request, as well there might be cases where it would be necessary for the Board as of the approximate costs and 'relevant administrative con· to hold more than one regular session ill a given year, in order siderations, and inquire whether they concur in it. If within to fulfil its obligations vis-a-vis the General Assembly. twenty-one days of the inquiry a majority of the members 7. There was 110 intention on the part of the sponsors to of the Board explicitly concurs in the request, the Executive provide explicitly that more than one regular session a year Director shall convene a special session of the Board." would be held; the aim of the amendment was to safeguard 15. A sub-amendment was proposed to the effect that sub­ this possibility in cases where it would be necessary. paragraph (b) would read: "The President of the Board. with 8. The representative of France expressed the view that the concurrence of at least two other members of the Bureau 1- it would be sufficient to delete the word "normally" in rule 1 and in consultation with the Executive Director". After of the draft rules of procedure, since special sessions, envisaged discussion the Committee accepted the following wording . ' iR rule 4, could provide for any contingency. The provision for sub-paragraph (b): "The President of the Board, with '1" contained in other relevant rules of procedure of United the concurrence of the other members of the Bureau of the Nations organs, such as the rules of procedure of the Trade Board and in consultation with the Executive Director". The and Development Board, were identical to draft rule 1. rule, as amended, was approved by the Committee. 9. It was the understanding of the Committee that the words 16. The Committee then considered rule 5 of the draft rul~s T "at least one regular session a year" in the amended text of I of procedure (to be renumbered rule 6). This rule was rule 1 did not denote an intention to hold more than one regular approved by the Committee. 1 session of the Board each year. At the same time they did 17. The Committee turned to rule 6 (to be renumbered not preclude the possibility of having more than one regular rule 7). The Committee had before it the following amendments session if the need existed and the Board so decided. proposed by the Group of Twenty-Five. The words "if any" 1 10. The Committee decided to approve rule I, as amended, would be added after the words "Committees of the Board". with the explanation referred to in the preceding paragraph. The words "the appropriate United Nations bodies" would l The representative of France reserved the position of his be added before the words "and the intergovernmental or­ delegation. ganizations". The words "at least twelve days in advance" 11. The Committee then considered rule 2 of the draft would be replaced by the words "immediately after the date rules of procedure. It decided to accept the amendment sub­ has been fixed by the President in accordance with rule 6 mitted by the Group of Twenty-Five, with an oral sub­ above". l amendment proposing to replace the words "at a previous 18. A representative pointed out that it was the first time session" by "at the previous session". Rule 2, as amended, that the addition of the words "if any" was proposed and was approved by the Committee. It reads as follows: "Each that if in the present instance there was no obi ection to these words being used, a decision would have to be taken at a • The Group of Twenty-Five is composed of the following later date by the Committee concerning the insertion of these countries: Argentina, Brazil, Cameroon, Chile, Colombia, words in other relevant rules. Ghana, Guinea, India, Indonesia, Iran, Ivory Coast, Jordan, Kuwait, Nigeria, Pakistan, Peru, Philippines, Rwanda, Somalia, 19. Rule 6, as amended, was approved, it being understood Sudan, Thailand, Trinidad and Tobago, United Arab Republic, that members of the Board should be given as much advance Uruguay and Zambia. notice for regular and special sessions as circumstances would 53 permit. Rule 7 of the draft rules of procedure (to be renumbered the Committee. Rule 22 was approved by the Committee with rule 8) was approved by the Committee. the substitution of the word "incapacitated" in the English text by the words "unable to perform his functions". Rules 23, 24, ZO. The Committee had bef

Com1Mmication of the provisional agenda Ill. REPRESENTATION AND CREDENTIALS Rule 10 Rule 16 After the Board has considered the provisional agenda for Each member of the Board shall be represented by an ac­ the following session, the provisional agenda, incorporating credited representative, who may be accompanied by such any amendments made by the Board, shall be communicated alternate representatives and advisers as may be required. by the Executive Director to all States Members of the United Rule 17 Nations or members of the specialized agencies or of the International Atomic Energy Agency, the President of the 1. The credentials of representatives and the names of alter. General Assembly, the President of the Economic and Social nate representatives and advisers shall be submitted to the Council, the specialized agencies, the International Atomic Exec,utive Director before the first meeting which the repre­ Energy Agency, the intergovernmental organizations referred sentatives are to attend. to in rule 75 below and the international non-governmental 2. The Bureau of the Board shall examine the credentials organizations referred to in rule 76 below. and submit their report to the Board. This rule shall not, Supplementary items however, prevent a member from changing its representative, alternate representatives, or advisers subsequently, sllbject to Rule 11 proper submission and examination of credentials, where The inclusion of supplementary items ill the provisional needed. agenda considered by the Board may be proposed by any IV. OFFICERS authority entitled to propose items under paragraph 1 of rule 8. The request for inclusion of a supplementary item shall be Elections accompanied by a supporting statement from the authority Rule 18 proposing it, except in the case of the General Assembly, regard­ ing the urgency of the consideration of the item. The supple­ Each year at the commencement of the first meeting of mentary items shall be placed by the Executive Director on the regular session, the Board shall elect a President, three a supplementary list and communicated to the Board together Vice-Presidents and a Rapporteur from among its members. with the supporting statements and such observations as the These officers shall constitute the Bureau of the Board. In Executive Director may wish to make. electing the officers, due regard shall be paid to the principle of equitable geographical representation. AdoPtion of the agmda Rule 19 Rule 12 1. Without prejudice to the principle of equitable geo­ 1. At the beginning of each regular session, subj ect to the graphical representation as laid down in rule 18 above, pro­ provisions of rule 15 and after the election of officers when vision shall be made for the election of the Bureau of the required under rule 18, the Board shall adopt its agenda for Board consisting of five members, including two members the session on the basis of the provisional agenda and the sup­ from Group A, one member from Group B, one member from plementary list referred to in rule 11. Group C and one member from Group D, referred to in the 57 annex of General Assembly resolution 2152 (XXI). For the Duties vf the secretariat purpo!es of the application of this rule, due account shall be Rule 30 taken of the decisions of the Board regarding the association of new members with the lists of States contained in the annex The secretariat shall interpret speeches made at meetings' to General Assembly resolution 2152 (XXI). shall receive, translate and circulate the documents of th~ 2. The offices of PresideDt and Rapporteur of the Board shall Board and its subsidiary organs; shall publish and circulate be subject to rotation among the groups on a six-year and the records of the sessions, the resolutions, the reports and five-year eyc1e, respectively, in accordance with the annex to the relevant documentation of the Board. It shall have the these rules of procedun. No group (except Group A) shall custody of the documents in the archive!! of the Board and hold both offices of President and Rapporteur in anyone year. generally perform all other work which the Board may require. Terms of office Esti'mates of expenditnres Rule 20 Rule 31 The President, the Vice-Presidents and the Rapporteur shall 1. Before any proposal which involves expenditure from hold office until their successors are elected. None of them United Nations funds is approvefil by the Board or by any may hold office after the expiration of the term of office of of its subsidiary organs, the Executive Director shall circulate the member of which he is a representative. to all members of the Board or of the subsidiary organ con­ cerned, as early as possible, a report from the Secretary­ Actitlg President General of the United Nations, in terms of Financial Regu­ lations 13.1 and 13.2, on the estimated costs involved as well Rule 21 as on the administrative and budgetary implications with ref­ If the President is absent from a meeting or any part erence to existing authorizations and appropriations in accord­ thereof, he shall appoint a Vice-President to take his place. ance with the provisions .of paragraphs 20 to 25, inclusive, of General Assembly resolution 2152 (XXI). Replacement of the Presidmt 2. \Vhenever the Board wishes to recommend, in caseS of Rule 22 exceptional urgency, that work for which no financial pro­ If the President ceases to be a representative of a member vision exists be started before the next regular session of the of the Board or is incapacitated, or if the State of which General Assembly, it shall include a. specific indication to that he is a representative ceases to be a mlimber of the Board, effect to the Executive Director in the resolution approving the Bureau shall designate one of the Vice-Presidents as Acting the proposal. President. VI. CONDUCT OF BUSINESS Powers of the Acting President QlIorum Rule 23 Rule 32 A Vice-President acting as President shall have the same A majority of the members of the Board shall constitute powers and duties as the President. a quorum. V oling rights oj the President Powers of the President Rule 24 Rule 33 In the case of a member of the Board which is for the time In addition to exercising the powers conferred upon him being represented by the President, an alternate representative elsewhere by these rules, the President shall declare the open­ ing and closing of each meeting of the Board shall direct the shall, at the discretion of the President, be permitted to ~ccord participate in the proceedings and to vote in the Board. In discussion, ensure observance of these rules, the right such a case the President shall not exercise his right to vote. to speak, put questions to the vote and announce decisions. He shall rule on points of order and, su bj ect to these rules, shall have control of the proceedings 'Of the Board and over the V. SECRETARIAT maintenance of order at its meetings. The President may pro­ Duties of the Executive Director pose to the Board the limitation of time to be allowed to Rule 25 speakers, the limitation of the number of times each representa­ tive may speak on any quesdon, the closure of the list of The Executive Director shall act in that capacity in an meet­ speakers or the closure of the debate. He may also propose ings of the Board and of its subsidiary organs. He may the suspension or the adjournment of the meetings or of the designate an officer of the secretariat to act as his repre­ debate on the question under discussion. sentative. Rule 34 Rule 26 The President, in the exercise of his functions, remains un­ The Executive Director shall direct the staff required by der the authority of the Board. the Board and its subsidiary organs. Speeches Rule 27 Rule 3S The Executive Director shall be responsible for keeping the members of the Board informed of any questions which may No person may address the Board without having previously be brought before it for consideration. obtained the permission of the President. Subj ect to rules 36 and 37 the President shall call upon speakers in the order in Rule 28 which they signify their desire to speak. The President may The Executive Director, or his representative, may, subject call a speaker to order if his remarks are not relevant to tl1e to rule 33, make oral as well as written statements to the subject under discussion. Board and its subsidiary organs concerning any question under Precedence consideration. Rule 36 Rule 29 The Chairman, Vice-Chairman or Rapporteur of a commit­ The Executive Director shall be responsible for all the nec­ tee ?r. working party, or a designated representative of any essary arrangements for meetings of the Board and of its subSidiary organ, may be accorded precedence in speaking for subsidiary organs, including the preparation and distribution the p~rpose of .explaining the conclusion arrived at by the of documents at least six weeks in advance of the sessions of committee, workmg party or subsidiary organ concerned and the Board and its !ubsidiary organs. for the purpose of replying to questions. 58 Points of order Propo'sals and amendments Rule 37 Rule 44 1. During the discussion of any matter, a representative may Proposals and amendments shall normally be introduced in at any time rise to a point of order, and the point of order writing and handed to the Executive Director, who shall cir­ shall be immediately decided by the President in accordance culate copies to the members. As a general rule, no proposal with the rules of procedure. A representative may appeal shall be discussed or put to the vote at any meeting of the against the ruling of the President. The appeal shall be im­ Boa·rd unless copies of it have been circulated to all members mediately put to the vote, and the ruling 'Of the President shall not later than the day preceding the meeting. Subject to the stand unless overruled by a majority vote of the members consent of the Board, the President may, however, permit the present and voting. discussion and consideration of proposals even though these 2. A representative rising to a point of order may not speak proposals or- amendments have not been circulated or have on the substance of the matter under discussion. only been circulated the same day. Deci..siOl~ on competence Time-limit 01~ speeches Rule 45 Rule 38 Subject to rule 43, any motion calling for a decision on the The Board may limit the time allowed to each speaker and competence of the Board to adopt any proposal or any amend­ the number of times each representative may speak on any ment submitted to it shall be put to the vote before a vote is questions, except on procedural questions, when the President taken on the proposal or amendment in questitln. shall limit each intervention to a maximum of five minutes. When debate is limited and a representative has spoken his Withdrawal of moti01lJ allotted time, the Presidellt shalI call him to order without Rule 46 delay. A motion may be withdrawn by its proposer at any time Closi1~g of list of sprokl'rs before voting on it has commenced, provided that the motion Rule 39 has not been amended. A motion which has thus been with­ dr-awn may be reintroduced by another member. During the course of a debate the President may announce the list of speakers and, with the consent of the Board, de­ VII. VOTING clare the list closed. The President may, however, accord the right of reply to any member if, in his opinion, a speech Rule 47 delivered after he has declared the list closed makes this Each member of the Boar-d shall have one vote. desirable. When the debate of an item is concluded because there are no other speakers, the President, with the consent Majority re-q1~irecl mid meaning of the- e%pression of the Board, shall declare the debate closed. "members present al~ voting" Rule 48 Adjournment of debate 1. Decisions of the Boar-d shall be made by a majority of the Rule 40 members present and voting. During the discussion of any matter, a representative may 2. For the purpose of these rules, the phrase "members move the adjournment of the debate on the question under present and voting" means members present and casting an discussion. In addition to the proposer of the motion, one rep­ affirmative or negative vote. Members which abstain from vot­ resentative may speak in favour of and one against the mo­ ing are considered as not voting. tion, after which the motion shall be immediately put to the vote. Method of voting Closltre of debate Rule 49 Subject to rule 55, the Board shall normally vote by show Rule 41 of hands, but any representative may request a roll-call, whieh A representative may at any time move the closure of the shall then be taken in the English alphabetical order of the debate on the question under discussion, whether or not any names of the members, beginning with the member whose name other representative has signified his wish to speak. Permission is drawn by lot by the President. to speak on the closure of the debate shall be accorded only to two speakers opposing the closure, after which the motion Recording of roll-call shall be immediately put to the vote. Rule 50

S1lSpensi01~ or adj01trnment of the meeting The vote of each member participating in a roll-call shall be inserted in the recor-d. Rule 42 Cmlducl during voting During the discussion of any matter a representative may move the suspension or the adjoul11ment of the meeting. Such Rule 51 motion shall not be debated, but shall be immediately put to After the President has announced the beginning of voting, the vote. no representative shall interrupt the voting except on a point of or-der in connexion with the actual conduct of the voting. Ord~t' of proudural motions The President may permit member-s to explain their votes, Rule 43 either before or after the voting, except when the vote is taken by secret ballot. The President may limit the time to be Subject to rule 37, and regardless of the order in which allowed for such explanations. The President shall not permit they are submitted, the following motions shall have precedence the proposer of a pr-oposal or of an amendment to explain his in the following order over alI other proposals or motions vote on his own proposal or amendment. before the meetings: Divisiotl of pro.posals or am.~nrltlu,~ts Ca) To suspend the meeting; Rule 52 Cb) To adjourn the meeting j A representative may move that parts of a proposal or of (c) To adjourn the debate on the question under discussion; an amendment shall be voted on separately. If objection is made Cd') For the closure of the debate on the question under to the request for division, the motion for division shall be discussion. voted upon. Permission to speak on the motion for division 59 shall be given only to two speakers in favour and two speakers 4. If three restricted ballots are inconclusive, unrestricted against If the motion for division is carried, those parts of the ballots shall follow in which votes may be cast for any eligible proposal or of the amendment which are subsequently approved person or member. If three such unrestricted ballots are in­ shaIl be put to the vote as a whole. If all operative parts of the conclusive, the next three ballots (subject to exception in the proposal or of the amendment have been rejected, the proposal case similar to that of the tie mentioned at the end of the or the amendment shall be considered to have been rejected as a previous paragraph of this rule) shall be restricted to the whole. candidates obtaining the greatest number of votes in the third of the unrestricted ballots. The number of such candidates V oUng on ammdmmts shall not be more than twice the places remaining to be filled. Rule 53 5. The following three ballots thereafter shall be un­ 1. When an amendment is moved to a proposal, the amend­ restricted and so on, until all the 'places are filled, ment shaH be voted on first. When two or more amendments Equally divided votes are moved to a proposal, the Board shall first vote on the amendment furthest removed in substance from the original Rule 58 proposal and then on the amendment next furthest removed If a vote is equally divided on matters other than election" therefr·om and so on until all the amendments have been put the proposal shall be regarded as rejected. to the vote. Where, however, the adoption of one amend· ment necessarily implies the rejection of another amendment, VIII. SESSIONAL COMMITTEES AND WORKING PARTIES ANI> the latter amendment shall not be put to the vote. I f one or more a.mendments are adopted, the amended proposal shall then SUBSIDIARY ORGANS OF THE BOARD be voted upon. I f no amendments are adopted, the proposal Rule 59 shall be put to the vote in its original form. The Board may establish such sessional committees and work­ 2. A motion is considered an amendment to a proposal if it ing parties and subsidiary organs as may be necessary for the adds to, deletes from or revises part of that proposal. effective discharge of its functions. V ()ting on proposals Sessional committees alld working parties Rule 54 Rule 60 1. If two or more proposals relate to the same question, 1. At each session, the Board may set up sessional commit­ the Board shall, unless it decides otherwise, vote on the prO­ tees and working parties from among its members, and refer posals in the order in which they have been submitted. The to them any questions on the agenda for a study and report. Board may, after each vote on a proposal, decide whether to Unless the Board decides otherwise, members of such sessional vote on the next proposal. committees and working parties shall be nominated by the President in consultation with the other members of the Bureau 2. Any motions requiring that no decision be taken on the substance of such proposals shall, however, be considered as and subject to the approval of the Board. previous questions and shall be put to the vote before them. 2. Sub-committees and sub-groups of working parties shall be nominated by the Chairman of the committee or working Elecliolls party concerned, subject to the approval of the committee or Rule 55 working party. 3. The provisions of rules 32 to 58 of these rules of proce­ AIl elections shaH be held by secret ball-ot unless otherwise dure shall be applied in the proceedings of the committees, decided by the Board. working parties and any sub-committees or sub-groups set up Rule 56 by them. 1. If, when one person or member only is to be elected, no Rule 61 candidate obtains in the first ballot the majority required, a Each sessional committee and working party shall elect its second ballot shall be taken, restricted to the two candidates own officers, unless otherwise decided by the Board. obtaining the largest number of votes. If in the second ballot the votes are equally divided, the President shall decide be­ Subsidiary orgalls of the Board tween the candidates by drawing lots. Rule 62 2. In the case of a tie in the first ballot among the candi­ dates obtaining the second largest number of votes, a special The Board may establish such subsidiary organs on a perma­ ballot shall be held for the purpose of reducing the number nent or ad hoc basis as may be necessary for the effective of candidates to two. In the case of a tie among three or discharge of its functions, including, as required, expert more candidates obtaining the largest number of votes, a second groups to consider specific problems and make recommendations. ballot shall be held. If a tie results among more than two candidates, the number shall be reduced to two by lot and the IX. LANGUAGES AND RECORDS balloting, restricted to them, shall continue in accordance with the preceding paragraph. Official all

Annex V MESSAGE DATED 10 APRIL 1967 FROM THE SECRETARY.GENERAL TO THE INDUSTRIAL DEVELOPMENT BOARD AT ITS FIRST SESSION The fir,st meeting of the Industrial Development Board Nations Development Programme, to finance the programme marks an important milestone in the development work of the of special industrial services proposed at the twentieth session United Nations. I deeply regret that the pressures of office of the General Assembly. Indeed, it takes a measure of en­ have made it necessary for me to be away from Headquarters lightened foresight on the part of the industrially advanced at this particular time and thereby prevented me from attend­ countries to be willing to share their current resources of ing personally the opening of this important session. I wish, technology and capital with a view to realizing the enormous however, to express on this occasion my conviction that the benefits that the world as a whole would gain from upgrading establishment by the General Assembly of the United Nations the productivity of two thirds of mankind to levels compatible Industrial Development Organization as a major addition to with the immediate possibilities of our technology. the spectrum of international organs and 'programmes in the I am sure an atmosphere of optimism and anticipation will economic and social field will give a new and pragmatic dimen­ pervade the first meeting of the Industrial Development Board. sion to the United Nations development efforts. For those who have united their efforts to give tangible ex­ The renewed emphasis on industrialization is a further ex­ pression to the universal desire for intensified and concentrated pression of the concern of the international community with action in the field of industrial development, this will indeed closing, or at least bridging, the "development gap". Indus­ be a most gratifying occasion. It should also serve as an in­ trialization is not an aim in itself. It is primarily an instrument, spiration to further efforts. While United Nations machinery and an essential one, for spearheading economic growth. It can play an important role when there is willingness to co­ should provide a basis for a balanced development of all operate in the attainment of common obj ectives, it would be economic activities, and primarily of the development of the misleading to view it as a substitute for action by individual human potential which has remained largely dormant in the countries. Just as the industrially advanced countries have less developed areas. Extending the prodigious possibilities special responsibilities because of the magnitude of their re­ opened up by the industrial revolution to those two thirds sources and technology, the major effort to accelerate indus­ of the world's population who have not participated so far in trialization must come from the developing nations themselves. the mounting prosperity of the more industrialized areas will In the last analysis, the extent to which existing and new op­ also make a major contribution to improved conditions of portunities for international co-operation will contribute to political and economic equilibrium throughout the world. the common goals depends on the degree of initiative, purpose­ The creation at this stage of a central machinery to deal fulness and sustained interest shown by 0111 member countries. with industrial development reflects not only a desire for broadening the scope of the United Nations work in this field, The time may be ripe now for a concentrated attack on the but also a larger preoccupation with the practical problems of problems of industrial development, undertaken as a co-opera­ development. It is particularly gratifying that, at a time when tive effort of industrialized and industrializing countries. To major donors of foreign aid programmes are showing signs of lead this effort may be the most important role of the Indus­ weariness, direct action in the field of industrial development trial Development Board. May I express the hope that the is gaining wide support. A concrete example of the willingness cntcial needs of mankind in this area will be well served by of the major industrial Powers to share the responsibility for the Board. In extending my welcome to 0111 members of the more effective action in this field were the pledges they made, Board, I wish to convey to each one of you my best wishes over and above their ,regular contributions to the United for the success of your first session.

Annex VI STATEMENT MADE BY THE EXECUTIVE DIRECTOR AT THE 3RD MEETING OF THE INDUSTRIAL DEVELOPMENT BOARD, ON II APRIL 1967 1. May I once again extend to you, Mr. President, and all development efforts through the promotion of accelerated in­ the distinguished representatives gathered here today, my warm­ dustrialization. The significance of this session is further en­ est welcome on this important occasion. The convening of tbe hanced by the fact that in the course of it the Board will be first session of the Industrial Development Board marks a laying the groundwork and the basic guidelines for effective new and most encouraging beginning for the United Nations action in pursuance of the purposes set out by the General 62 Assembly when it decided to establish the United Nations also participated, it was envisaged that the close relationllrup Industrial Development Organization. between UNID0, the regional economic; commissions and 2. In facing the tasks of its first session the Board has appropriate specialized agencies should be built on the basis of before it a long and heavy agenda. While the issues may not specific industrial development projects in order to achieve be all neW, many of the items on the agenda are likely to the maximum impact on the countries concerned. The devel­ come under examination in the light of the Board's broad opment of specific machinery and procedures for co-ordination responsibilities in the field of industry and the renewed em­ among the various organizations of the United Nations system phasis on intensified action which led to the establishment in the field of industrial development should proceed gradually of UNIDO. on the basis of the cumulative experience derived from prac­ 3. Indeed, there will also be the realization that the estab­ tical undertakings of common interest and broad co-operative lishment of UNIDO-encouraging as it may be for the aspira­ efforts such as those undertaken in connexion with the regional tions of the developing countries-was EOt a goal in itself symposia and the International Symposium on Industrial De­ but an instrument towards much needed and hoped for action. velopment. Thus, the task is just beginning; a great deal of work and 9. Joint efforts to deal with the multisided aspects of in­ resources will be needed to accomplish the goals for which dustrialization are continuously broadened in the search for the Organization has been established. It is important that the adequate solutions to specific problems. Some time ago we instrument should not obscure the goals and that success in started operational activities for the promotion of export­ formally creating the machinery should not detract from the oriented industries in countries requesting assistance in this efforts to develop and use it effectively. area. Since then UNCTAD has become associated in this 4. I do not intend to go into the particulars of every item work, in respect to its over-all responsibility for the promotion listed on the agenda, which the Board will examine in con­ of exports of manu factured and semi-manufactured goods, and nexion with the specific documentation submitted in each case. the project is now developing into a joint effort by several Beyond a general review of some basic issues, it is my in­ United Nations organizations. tention to limit my comments to those matters which arc 10. Among recent developments, the Asian Industrial De­ related to the maj or fields of activity of UNIDO, the harmoni­ velopment Council-which was established on the recommenda­ zation of the industrial activities of the United Nations system tion of the regional symposium-decided last month to establish of organizations, and certain specific questions such as the "action groups" in several sectors of industry. The participa­ holding of the International Symposium on Indu~trial Devel­ tion of UNIDO has been invited in the first two groups to be opment and the establishment of UNIDO headquarters. established in 1967, namely for iron and steel and the chemical 5. Item 9 of the agenda relates to the establishment of pulp industry. UNIDO may also co-operate with the Economic UNIDO headquarters which by decision of the General As­ Commission for Africa in the establishment of a pilot regional sembly are to be located in Vienna. The Austrian Government centre for small industries for the western sub region. Likewise has been most generous in its offer to build, at its own ex­ we have been asked to co-operate and take part in a meeting pense, permanent headquarters buildings and conference facilities on the development of petrochemical and fertilizer industries for UNIDO. These would be erected in the Danube Park area to follow up the recommendations of the Symposium on In­ of Vienna and form the beginning of an "international city". dustrial Development in Arab Countries, held at Kuwait in I consider it an act of statesmanship rand vision on the part of March 1966. the Austrian authorities to propose the creation of such an 11. At the meeting of the Administrative Committee on international complex of facilities in the heart of Europe; its Co-ordination held earlier this month the representative of some existence will be a maj or contribution to international under­ of; the specialized agencies felt that there was a need to estab­ standing based on practical co-operation in fields which are lish formal co-ordination machinery in the field of industry. becoming increasingly important for all humanity. In the light of the important responsibilities placed on the 6. The Board has before it the specific report on the nego­ Board by the General Assembly, which decided that the Or­ tiations conducted with the Government of Austria as well as ganization "shall play the central role in and be responsible the details of the arrangements contemplated for the temporary for reviewing and promoting the co-ordination of al1 activities headquarters of UNIDO. I wish to express here particularly of the United Nations system in the field of industrial devel­ my gratitude for the help and ready co-operation which we opment", it would appear appropriate for the Board to lay received from the Austrian authorities. This spirit of co­ down the basic principles for action in this area. We shall operation has made it possible to achieve early results in a endeavour to carry out the practical measures within the guide­ relatively short period of time and in accordance with the lines provided by the Board in seeking to strengthen co­ desire of the General Assembly to have this matter dealt with operation with all the organs and units of the United Nations at the first session of the Board. I am most grateful in par­ family of organizations, as well as a concerted approach through ticular to His Excellency Dr. Carl Bobleter, the Secretary harmonization of activities in the field of industry, under the of State for Foreign Affairs of the Austrian Government, who policy directives and basic guidelines emanating from the Board. is with us today and who, as a member of the Austrian Gov­ 12. In this connexion it is clear that UNIDO, with its very :.. ernment, is in charge of the negotiations with UNIDO. limited resources, cannot tackle all the problems of indus­ 7. Under agenda items 5 and 11, the Board has before it trialization at once. We must make use of the experience and comprehensive information on the full spectrum of activities existing resources of other United Nations organizations. With­ carried out by the United Nations system of organizations in out in any way shrinking from responsibility for the broad the field of industrial development. In the light of the Board's mandate of UNIDO in the field of industry, it is necessary over-all policy responsibilities and its central role for co­ to undertake practical arrangements at an intersecretariat level ordinating all the activities of the United Nations system in for collaboration in specific fields of work on the basis of a this field, it may be open to question whether patterns of flexible approach, subject to adj ustment as may be required reporting which have been developed in different circum­ in the light of subsequent experience and developments. stances should be retained or whether a pattern more appro­ 13. The activities and programme of work of UNIDO are priate for examination by the Board needs to be developed. reflected in several items of the provisional agenda.. A good In particular, there may be a need lor closer analysis 01 ac­ part of the current work is geared to the preparation of the tivities by individual branches of industry so as to enable the International Symposium on Industrial Development. N ever­ Board to deal with the specific problems as they affect each theless the organization's activities as a whole are primarily sector, and make it possible to set up basic guidelines not centred 011 the practical operational assistance to the devel­ " only with a view to achieving adequate co-ordination but also oping countries. Since direct operational assistance is of a .' as a way of harmonizing the activities by individual agencies tangible nature it must be closely tied to the application of I within an integrated approach in order to increase their effec­ know-how in specific areas of work. Thus the programme of tiveness and over-all impact. work as presented to the Board has been classified along the 8. At the recent meeting of the executive secretaries 01 the major branches or aspects of industrialization which comprise regional economic commissions in which the specialized agencies the very large variety of different activities that make up the 63 total picture of industrialization. Effective operational activitie~ at the disposal of the Board to carry out the work in accord­ de~l1d to a large extent on the ability of the secretariat to ance with the Board's guidelines and instructions. During the bUlld .up a strong technical capability and a thorough under­ current transitional ,period, the expanded framework result­ standmg of the problems and alternative approaches in each ing from the creation of UNIDO, on the one hand, and the ,.. of th.e partic~lar. branches and aspects of industry. In their designation of a new headquarters location for the organiza­ practical appllcatlOn, of course, such technical know-how and tion, on the other hand, have both contributed to the need for understanding of the individual aspects of the process have maintaining a flexible approach. However, at this stage it is to ?e harmonized in a total approach to the problem at hand. equally important not to lose sight of the basic need to qUIte frequently an industrial project-whether it be the estab­ strengthen the technical capability of the secretariat of lishment of a particular industrial plant or the development UNIDO. Thus, it should be possible to meet the need for I- ! of a. whol~ ~ec~or of industry-involves problems which require maintaining and improving the necessary services during this an .Interdlsclplmary approach in terms of the various aspects transitional period, when the organization is gradually taking ,.,] ?f tndust~y..For instance, the feasibility study for a particular on its basic tasks, and at the same time creating a strong mdustry IS 111 many cases the result of individual studies con­ machinery on which the Board may confidently eaU for im­ cerning. su~~ different matters as the capacity of the market, plementation of its policies and programmes. avat~a?lhty ' the of raw materials and other physical resources, 17. In building up its technical capability, UNIDO also . the conditions of labour and manpower, the capital requirements, ~n enhances its ability to serve as a bridge between the develop­ etc. the further stages of the project involving engineering ing countries and the industrially advanced countries in search studIes and the promotion of financing, it may be necessary of a true partnership between the manpower, market potential to apply different technical criteria to the selection of the most appropriate production processes and equipment, the choice and physical resources of the first, and the capital and of location, the training of the necessary technical manpower, technological expertise of the latter. In the industrial world there is now considerable concern about the concentration or the .undertaking of particular research as a way of solving speCIfic problems related to the utilization of existing raw polarization of technology which accompanied the vast ex­ •I materials or the solution of other problems of a local nature. pansion of technology and the rapidly increasing industrial Thus, one single project may involve the whole spectrum of production during recent years. The role of international co­ activities listed in the programme of work. The same applies operation in promoting the technological advancement ofJ the ,I to industry as a whole; in both cases a multisided approach less developed countries may have an important bearing on the becomes an essential requirement. It is the ability to provide total picture of the access to technology and the application ".1 such a multidimensional approach in dealing with the prob­ of new developments to industry. Similarly, the world-wide lems of industrialization that will determine the success or interests of the large international corporations are increas­ ,! ,I failure of UNIDO in implementing the broad mandate that it ingly becoming a factor in the shift of industrial responsibi­ received from the General Assembly. lities from operations in a single country to a broader interna­ tional scale. Because of the extent of their markets and the size 14. One of the first challenges that the new organization of their operations, they are in a particularly privileged posi­ must meet is the need to equip itself for such many-sided tion to contribute to the over-all development effort in the requirements. As is well known, the staff dealing with industrial fields of industrial technology and production. Recent examples development has been so far a relatively small sector of the of the :far-reaching action of international industrial corpo­ ... United Nations. In contrast, the number of industrial speciali­ rations represent a new pattern of international co-operation. zations is very large and almost infinitely varied. We have The meshing of the operations of the present-day interna­ never assumed that UNIDO needs to cover all of them. But tional corporations is creating a phenomenon of internation­ 1 if the organization is to be effective and operational, it must alism and of practical de facio international co-operation -I be able to cover with its technical staff a certain number of which has no parallel in any other branch of human endeavour. ] basic fields or aspects of industry, after taking due account The same applies to publicly established organizations and pro­ of the experience and activities of other United Nations or­ grammes whose operations relate mainly to the development ~1 ganizations under a harmonized framework of industrial devel­ of industry on an international level. opment activities. 15. Target estimates of the minimum viable size required to 18. This phenomenon has its counterpart in the efforts of the 1 cover the variety of specializations were established but we developing countries to enlarge their markets and explore I , \ are still far from having reached such minimum. In the cir­ the advantages of joint industrial undertakings of a regional cumstances resources have to be concentrated to meet the Or subregional nature. Increasing attention will have to be most pressing needs. While all priority is being given to direct paid to the multinational and regional approach in industrializa­ assistance activities, it would be unrealistic to expect that these tion. The advantages of larger markets are self-evident in can be developed in a vacuum. The very concept of operational respect to mass producing industries and industrial plants sub­ activities must be understood in a wider context which in­ ject to large-scale economies. But there are many other ad­ '1 cludes the ability to mobilize resources, promote co-operation vantages, such as mobility of labour and capital, removal of towards specific goals and provide backstopping and technical artificial obstacles, establishment of joint research and de­ information; it also includes continuing study and evaluation velopment facilities etc., which could significantly contribute to of existing experience with a view to its practical application. the creation of favourable conditions for speeding up industrial I The understanding of the requirements of industrialization development. derived from analytical research of specific problems is likely 19. On the part of the industrializing countries, there is also 1 to be of no less value to the developing countries than tech­ a need for sustained and larger efforts in developing their own ., nical advice given on a piecemeal basis; it is at any rate industrial :forces. Much can be done by the developing coun­ indispensable for the development and implementation of sound tries themselves to make fuller use of their resources and man­ programmes of direct assistance. Indeed, UNIDO cannot ex­ power as we\] as their potential market for industrial prod­ pect to be fully operational without developing first a broad ucts. However, in attempting to mobilize their own resources range of technical capabilities and without becoming a store­ the developing countries frequently come up against the ab­ house of practical information and a centre of contacts to cope sence of certain instruments and means of action. Our techni­ with problems related to industry building and transfer of cal co-operation activities must be geared to filling this' gap. technology. Furthermore, the current programme of work There have been in recent years expressions of concern over -covering as it does a large number of different types o:f the so-called lack of requests for assistance in the field of activities-reveals the existence of a number of areas that industrial development. The strong increase of our technical as­ need to be developed more. Thus, for example, work on such sistance programmes, which have almost doubled in value since matters as the promotion of industrial finance, the development 1964 indicates that the paucity of requests did not reflect a lack of industrial information and liaison, patents and licences, etc., of needs. While I would be the first to agree that the signifi­ must be taken in hand and expanded as soon as possible. cance of the operational activities cannot be measured in terms 16. It is, o:f course, the Board's responsibility to set the of dollars spent, there is no doubt that the existence of an ade­ basic policies and approaches to our work. The secretariat is quate ability to meet them provides an important stimulus for 64 p f

the submission of requests. A further confirmation of the im­ the industrial sector is indispensable. If industrial policy is to portance that the availability of an adequate framework may be effective, it cannot be separated from policies relating to have in expanding the scope and effectiveness of the operational the internal distribution of personal incomes, from employment programmes has been provided by the recent experience with policies, policies relating to savings and investment and the newly established programme of special industrial services. measures to raise productivity not only in the industrial sector In the first nine months of its existence, over 100 requests for but in agriculture and the service sectors as well. In this regard assistance have been received from Governments. The majority there is ground for optimism in the increased recognition by 1 of these requests are being met under the special industrial Governments that the planning of economic development gener­ services programme, while a number have been taken up for ally cannot be divorced from the consideration of specific policy r cOnsideration under other existing programmes, as appropriate. questions and measures pertaining to the industrial, agricultural Considering that this experimental programme is only in its and service sectors of the economy. This awareness brought t initial phase and that operations under it began at a time of about a larger need for general surveys and analytical assess­ transition related to the important organizational changes which ments of the experiences of industrialization as a. guide to are to a large extent still in process and may continue for further action. some time until UNIDO has settled in its headquarters, it be­ 24. Studies carried out and under preparation show that comes evident that the building up of a favourable environ­ during recent years, a considerable number of countries have ment and the establishment of appropriate instruments to deal experienced an average annual rate of industrial growth in l effectively with the needs of the developing countries are likely the neighbourhood of 7 to 9 per cent. During the past decade, )1:': to elicit a very active response on the part of the latter. the industrial production of the developing countries as a 20. Of course, the impact of the operational activities cannot whole has doubled. Their production of steel has tripled and be measured alone by the number of projects, requests or plans for further expansion are weB advanced. Annual produc­ 'l experts, or even by the amount spent; the central question is tion of cement has more than doubled: it is now larger than one of effectiveness. The creation of the progr~me of special the production of western Europe and North America before l industrial services as a flexible programme of speedy action, the Second World War. Of great importance for both industrial and free from cumbersome programming procedures, has opened and agricultural development is the fact that a significant ex­ r the way for the potential needs to show up as actual requests pansion is under way in the capacity to produce synthetic l for assistance. Implementation of this programme is providing fertilizers. Significant advances have also been made in the "" experience and a better understanding of the real nature of production of energy, in transportation and communication the needs in the field of industrial development. It is becoming facilities and in education-all of which are essential prere­ r more and more evident that it is not a matter of spoon-feeding quisites for an advance in the industrial sector itself. Exports know-how or of giving sporadic advice by qualified experts. of manufactures of several developing countries are proving J While technical competence may be of prime importance in competitive in international markets. respect to the intrinsic value of the assistance provided, its r effective utilization in the developing country depends in most 24. Studies carried out and under preparation show tha.t <;ases on the ability to provide aid on a continuing and The relatively high rates of growth in industry, in contrast sustained basis. with the much lower rates of growth in the still predominant agricultural sector, reflect the very low starting base. The 21. As has been pointed out so frequently, industry is an percentage rise in itself does not show the e::

Annex VID RESOLUTIONS ADOPTED BY THE INDUSTRIAL DEVELOPMENT BOARD AT ITS FffiST SESSION

1 (1). FUTURE PROGRA.MME OF WORK AND ACTIV1TIES OF THE (ii) Research activities of the United Nations Industrial UNITED NATIONS INDUSTR1AL DEVELOPMENT ORGANIZA­ Development Organization which do not necessarily have T10N. an immediate and direct support,ing role in relation to The Industrial Development BOG'rd, operational activities can, nevertheless, serve useful longer-range development needs such as the formulation Recalling the provisions of General Assembly resolution 2152 of alternative industrial development strategies. In such (XXI) of 17 November 1966, cases the United Nations Industrial Development Or­ Recognizing that the work programme of the United Nations ganization should, wherever possible, draw on appro· Industrial Development Organization has to be geared to the priate work of other institutions, and, as necessary, fulfilment of its purpose and the best possible implementation encourage them to undertake such research in areas of its functions as set forth in General Assembly resolutiQn which the experience of its operational activities would 2152 (XXI), indicate to be fruitful. The United Nations Industrial 1. Decides that the United Nations Industrial Development Development Organization may also undertake useful Organization shall carry out its functions essentially on the compilations and indexing of relevant information, basis of meeting the urgent needs of the developing countries classifications of conclusions derived from comparative in accelerating their industrial development through promotional studies of actual cases, and the periodic evaluation of and operational activities supported by relevant research; industrial trends, especially in the developing world, 2. Reqltests the Executive Director to exercise his responsi­ to measure achievements and identify important indus­ .' bilities in accordance with the following guidelines: trial development problems; (a) Operational activities of the United Nations Industrial (Hi) Seminars and workshops should be undertaken in re­ Development Organization, whether financed f.rom contributions sponse to clear needs and after adequate preparation. made direc.tly to it or undertaken through participation in the Documentation preparatory to, and resulting from, such United Nations Development Programme or by the utilization seminars and workshops should consist of short and of the appropriate resources of the United Nations regular clear papers which can be used to guide similar dis­ programme of technical assistance or under the programme cussions and study groups in developing countries. Such of special industrial services, should be undertaken only at the documentation should be as up-to-date as possible and request of Governments; made available promptly in order to be of maximum (b) Measures should be undertaken to expedite the im­ value j plementation of projects already approved under the United (e) A more dynamic approach should be increasingly built Nations Development Programme, the regular programme of into the programme of the United Nations Industrial Develop­ technical assistance and the programme of special industrial ment Organization in such a way that the field activities may services, and also such requests as may be forthcoming during provide a leverage for much larger undertakings within the 1967 and 1968; promotional role of the Organization. Promotional activities (c) Operational activities of the United Nations Industrial in turn should lead to the expansion and greater effectiveness Development Organization should be expanded through the of studies and field operations; establishment of closer and direct contacts with the developing countries and of better access to the experience and knowledge (f) The operational activities of the United Nations Indus­ I of the advanced countries; trial Development Organization as hereunder elaborated should j (d) Research activities of the United Nations Industrial be widely publicized and brought specifically to the attention Development Organization as provided for in paragraph 2 Cb) of Governments of developing countries in order to assist them of General Assembly resolution 2152 (XXI) should be based in formulating their requests under the operational programme 1 on the following considerations: of the Organization, in the immediate future: (i) Action-oriented studies and research programmes of (i) Assistance in carrying out comprehensive general 1 the United Nations Industrial Development Organiza­ surveys of industrial development possibilities in in­ tion should be designed especially to facilitate the under­ dividual countries or in groups of countries, e.g., in taking of operational activities which result from re­ regions or subregions; quests from the developing countries in the framework (ii) Assistance in the formulation of industrial develop­ of the functions of that Organization. Research activities ment plans and programmes and the determination undertaken by the United Nations Industrial Develop­ of priorities and the formulation of appropriate ment Organization should also be directed to achieving policies, incentives and other measures in individual improved effectiveness of operational activities. It is, countries or in groups of countries; furthermore, recognized that certain types of studies and surveys have an important role both in the analysis (iii) Assistance in identifying those branches of industry and evaluation of the experience gained in the field and which should be developed in order to ensure ac­ in the determination of the proper direction of future celerated industrialization and better standards of operational assistance activities: living; 70 (iv) Assistance in conducting pre-investment studies of g. Marketing and export promotion i specific industrial possibilities and the evaluation of h. Services to small-scale industry, including indus­ specific projects; trial estates; t. ... (v) Assistance in executing necessary detailed technical i. Investment promotion; " and economic feasibility studies to elaborate specific (xvi) Assistance on experimental projects designed: bankable projects and in the economic and financial a. To adapt existing technology to the very different planning and evaluation of specific projects including factor endowments in the developing countries; the identification of possible domestic resources; b. To investigate alternative possible new uses for (vi) Assistance in obtaining external financing for specific local raw materials; industrial projects, including additional financing for c. To dev.ise, wherever possible, linkages between expansion and improvement of existing industrial va,rious products and stages of processing which plants, by the giving of guidance in the preparation of may form the base for a viable industrial complex; specific requests, including information on the terms (xvii) Assistance in establishing pilot plants and experi­ and conditions of the various financing agencies, and mental factories and in obtaining the supply of in­ by advice to financing agencies on the technical and dustrial inputs otherwise unavailable, to initiate economic soundness of the ,projects submitted for industries which are likely to mature quickly; financing; (vii) Advising at the various stages of implementation (xviii) Organization, as appropriate, of seminars and work­ and follow-up of industrial projects, including the shops on specific aspects and problems of industrial preparation of detailed project reports or their evalua­ development; tion, selection of processes, technologies and ma­ (g) Assistance may be provided to Governments at their chinery and equipment, preparation of invitations for request in the preparation of their projects through appro­ tenders, evaluation of tenders, supervision of con­ priate means, including the sending of field missions or experts. struction work, and commissioning and testing of To this end, the secretariat should urgently develop the requisite industrial plants; technical capacity; (viii) Assistance in achieving the efficient utilization of (h) The United Nations Industrial Development Organiza­ new and existing industrial capacity in developing tion shall co-operate with the United Nations regional eco­ countries; in particular, help in all phases of pro­ nomic commissions and the United Nations Economic and duction, including the solution of technical and tech­ Social Office in Beirut, assist the regional and subregional nological problems, improvement and control of economic groupings and co-operate with them at the request quality, the recruitment of competent management of the Governments concerned in the elaboration and/or im­ and its surveillance to ensure high performance; plementation of national or multinational programmes and (ix) Assistance in developing and improving marketing projects in the developing countries; and distribution techniques and in providing solutions (i) As appropriate, assistance should be provided pursuant for marketing and distribution problems with specific to the provisions for co-ordination and co-operation contained industrial products; in General Assembly resolution 2152 (XXI) ; (x) Assistance in the development of export-oriented 3. Requests the Executive Director to present future work industry and in the solution of its particular prob­ programmes of the United Nations Industrial Development lems; Organization on the basis of the following considerations, (xi) Assistance in the training of technical and other taking into account the need to develop gradual1y the central appropriate categories of personnel, specifically in co-ordinating role of the Organization in the field of industrial relation to particular existing or planned industries, development: including such forms of training as management (a) The work programmes should be in la form which will workshops, in-plant training etc" using the services enable the Industrial Development Board to have an over-all of specialists of both the developed and developing view, in budgetary terms, of the operational and headquarters countries; activities of the United Nations Industrial Development Or­ ganization and hence to consider their budgetary implications; (xii) Assistance in promoting co-operation among devel­ oping countries on programmes and projects of in­ (b) The same framework should be used for presenting dustrial development and in developing export po­ summary reports on earlier activities of the United Nations tential; Industrial Development Organization and future trends, in order to enable the Industrial Development Board to fol1ow, (xiii) Assistance in the dissemination for the developing year by year, the over-all evolution of these activities; countries, of information on technological innova­ (c) The framework for presenting the work programme tions originating in various countries, assistance in should, in particular, indicate clearly the breakdown: the implementation of practical measures for the application of such information, the adaptation of (i) Among the fields of activity in broad categories in the existing technology and the development of new recipient countries; technology especially suited to the particular physical, (ii) Among the various types of activities, compnsmg on social and economic conditions of developing coun­ the one hand operational activities (technical assistance tries through the establishment and improvement, measured in man-months or in scholarships and feHow­ inter alia, of technological research centres in these ships, studies and services or other operations meas­ countries; ured in monetary units) and on the other hand head­ (xiv) Information and advice on the systems of patents, quarters activities, which are considered as supporting industrial property and know-how; the operational activities (management and control of operational proj ects, dissemination of information, gen­ (xv) Assistance in establishing or strengthening national eral studies and research and general administration); and multinational institutions to deal with various aspects and problems of industrial development in (iii) Among sources of finance, distinguishing between the such fields as ; United Nations Industrial Development Organization's own resources and other funds and programmes of the a, Planning and programming; United Nations system; b. Project formulation and evaluation; c. Engineering and design; (d) This presentation should enable the Industrial Develop­ d. Training, management and productivity; ment Board in particular to: e. Technological applied research; (i) Obtain a clear view of the relationship between the j. Standardization, quality control, weights and meas­ field of activities, the type of activities and financial ures administration; resources; 71 (H) See the relationship between the total amount of the Recogni3ing that it is necessary to revise the provisions operational budget and that of the administrative governing the United Nations regular programme of technical budget; assistance with a view to: (Hi) See to what extent the headquarters activities are serv­ (a) Increasing the level of the allocations to industrial de­ ing more or less directly to support the operational velopment projects within the total appropriations under part V nctivities ; of the regular budget; (iv) Gain a clear picture of the level achieved in the co­ (b) Providing for separate programming and approval of ordination of all industrial development activities within these allocations, the United Nations System; 1. Invites the Secretary-General of the United Nations to 4. Appr.oves the programme of work contained in the rejXlrt convene an annual pledging conference in accordance with sec­ submitted by the Executive Director (ID/B/4), subject to tion n, paragraph 23 (a), of General Assembly resolution 2152 such changes as may be deemed appropriate by him in the (XXI), the first such conference to be convened during the light of the guidelines indicated in paragraph 2 above. twenty-third session of the General Assembly; 35th plelwry meeting, 2. Recommends to the General Assembly to take appropriate 4 May 1967. action at its twenty-second session: 2 (I). FINANCIAL QUESTIONS (a) To establish a separate section in part V of the United The Indu.strial Development Board, Nations budget to provide for the programme of technical as­ Recalling the provisions of General Assembly res'olution 2152 sistance in industrial development at an appropriate level com­ (XXI) of 17 November 1966, mensurate with the expanding requirements of the developing Convinced that the autonomy and effectiveness of the United countries; Nations Industrial Development Organization can be better (b) To amend General Assembly resolution 2029 (XX) of ensured if it also has its own independent financial resources, 22 November 1965 so as to enable the Industrial Development Desirous of making available t·o the new organization all Board to consider and approve the projects and programmes such means as may enable it to make an effective and efficient in the field of industrial development undertaken through the beginning, especially in its operational activities, utilization of the resources thus appropriated, and to provide Noting the important role of the United Nations regular general policy guidance and direction with reference to the programme of technical assistance as a promotional instrument utilization of these resources. in broadening the direct assistance provided to the developing 36th plenary meeting, countries in the field of industrial development, 4 May 1967.

Annex IX

LIST OF DOCUMENTS BEFORE THE INDUSTRIAL DEVELOPMENT BOARD AT ITS FIRST SESSION

General series ID/B/l Provisional agenda ID/B/l/Add.l Annotations to the provisional agenda ID/B/l/Rev.l Agenda adopted at the second meeting, 10 April 1967 ID/B/2 Adoption of rules of procedure of the Board: note by the Secretary-General ID/B/3 and Corr.! and 2 Activities of the United Nations system of organizations in the field of industrial development: second consolidated report ID/B/3/Add.! A111U.~· 1: Information on organizational arrangements AmlC.t' 11: Survey data on operational activities ID/B/3/Add.2 ...... , .. Summary data of the operational activities of the Centre for Industrial Development ID/B/3/Add.3 ...... FAO's activities in the field of industrial development-1966 annual report: note by the Execu. tive Director ID/Bj3/AddA Report by the United Nations Economic Commission for Latin America ID/B/3/Add.5 Activities of the Economic Commission for Europe in the field of industrial development ID/B/3/Add.6 Activities of the Committee on Housing, Building and Planning in the field of industrial development ID/B/3/Add.7 Report by the United Nations Economic Commission for Asia and the Far East ID/B/3/Add.S Activities of the Economic Commission f or Africa in the field of industrial development ID/B/3/Add.9 Report by the Office of the International Union for the Protection of Industrial Property ID/B/4 and Corr.!, 2, and 3 Report on the activities and programme of work of the United Nations Industrial Development Organization ID/B/S International Symposium on Industrial Development: note by the Executive Director ID/B/6 Establishment of UNIDO headquarters: progress report by the Executive Director ID/B/6/Add.l and Corr.! Draft agreement between the United Nations and the Republic of Austria regarding the head- quarters of the United Nations Industrial Development Organizationn ID/B/6/Add.2 and Corr.! Report on negotiations for an exchange of notes relating to the draft agreement ID/B/G/Add.3 Text of exchange of notes relating to the draft agreement: note by the Executive Director ID/B/7 and Add.l and 2 Programme of special industrial services: report by the Executive Director ID/B/8 Progress report on steps taken by developing countries to develop and establish export-oriented industries: report by the Executive Director JD/B/S/Add.! and Corr.1 Progress report on the steps taken by GATT to assist developing countries to promote export- oriented industries 72 ID/B/9 ...... Implementation of the recommendations of the Interregional Seminar on the Production of Fertilizers, held in Kiev (Ukrainian Soviet Socialist Republic), 24 August-ll September 1965: report by the Executive Director ID/B/IO · The role of the United Nations in the training of national technical personnel: note by the Executive Director r'" ID/B/Il · , Note by the Executive Director transmitting the report on the Meeting of Experts on United Nations Technical Assistance relating to Exports of Manufactures and Semi-manufactures from Developing Countries (Geneva, 24-28 October 1966) ID/B/12 · Statement made by the Executive Director at the 3rd meeting of the Industrial Development Board, on 11 April 1967b ' ID/B/13 · Text of message dated 10 April 1967 from the Secretary-General to the Industrial Development , Board at its first sessi onC ID/B/14 · ., Statement made by Mr. Carl Bobleter, Under-Secretary of State for Fo'reign Affairs of Aus- tria, at the 3rd meeting of the United Nations Industrial Development Board, on 11 April .. 1967" ID/B/15 · Statement by the Legal Council of the United Nations Industrial Development Board on the draft headquarters agreement between the United Nations and Austria, 11 April 1967 ID/B/16 · " Report of the Sessional Committee on the rules of procedured ID/B/17 · Report of the Industrial Development Board: note by the Executive Director

t Limited series I ID/B/L.l Secretariat of the United Nations Industrial Development Organization: note by the Executive Director r ID/B/L.2 ...... •.UNIDO: classification of projects in the programme 'of work: note by the Executive Director ID/B/L.3 ...... •.•••Tentative target establishment of the UNIDO secretariat: note by the Executive Director 1 ID/B/LA Summary of proj ects in the industrial field for 1967, including sources of financing ID/B/L.5 Statement by Mr. Paul G. Hoffman, Administrator, United Nations Development Programme, to the Industrial Development Board at its first session, 19 April 1967 f ID/B/L.6 ...... ••...••.Statement by Mr. Martin Hill, Under-Secretary for Inter-Agency Affairs, to the Industrial Development Board at its first session, 19 April 1967 ID/E/L.7 and Corr.l Jordan and Trinidad and Tobago: draft resolution ID/B/L.7 Rev.l Jordan and Trinidad and Tobago: revised draft resolution r ID/B/L.8 Peru and Philippines: draft resolution ID/B/L.8/Rev.l , Cameroon, Peru and Philippines: revised draft resolution ID/B/L.8jRev.2 Cameroon, Peru and Philippines: revised draft resolution rI ID/B/L,9 Philippines: draft resolution on the UNIDO work programme on fertilizer industries T ID/B/L.lO Philippines: proposal concerning UNIDO activities on export-oriented industries' ID/B/L.l1 Guinea, Ivory Coast and Philippines: draft resolution r ID/B/L.12 and Add.1-2, Add.3/ Rev.1, Add.4-10 ...... •...... Draft report of the first session of the Industrial Development Board r ID/B/L.13 ...... •..Memorandum of the Brazilian delegation on the agenda of the International Symposium for Industrial Development ID/B/L.l4 ...... •.....Report of the Sessional Committee on Rules of Procedure: proposal by the delegation of Co­ T lombia ID/B/L.l5 Ghana, Guinea, India, Jordan, Nigeria, Pakistan, Rwanda, Somalia, Sudan and United Arab r Republic: draft resolution ID/B/L.l5/Rev.1 Ghana, Guinea, India, Nigeria, Pakistan, Rwanda, Somalia, Sudan and United Arab Republic: l revised dra ft resolution ID/B/L.l5/Rev.2 Ghana, Guinea, India, Nigeria, Pakistan, Rwanda, Somalia, Sudan and United Arnb Republic: revised draft resolution i ID/B/L.l6 Statement made by the Executive Director at the 23rd meeting of the Industrial Development .- Board on 28 April 1967e \ ID/B/L.l7 Jordan, Nigeria and Sudan: draft resolution ID/B/L.l7/Rev.l Jordan, Nigeria and Sudan: revised draft resolution l! ID/B/L.18 ...... •....Argentina, Austria, India and United Arab Republic: draft proposal ID/B/L.l8/Rev.1 Argentina, Austria, India and United Arab Republic: revised draft proposal ID/BjL.l9 Bulgaria, Czechoslovakia and Union of Soviet Socialist Republics: draft resolution on guide- lines for the programme of work of UNIDO ID/B/L.20 Philippines: proposal ID/B/L.23 Czechoslovakia: amendments to document ID/B/L,17 ID/B/L.24 Somalia: amendments to document ID/B/L.17 ID/B/L.25 Programme of work: observations in connexion with the projects listed in the annex to the draft resolution contained in ID/B/L.!7: note by the secretariat ID/B/L,26 Philippines: proposal concerning the annual consolidated report on the industrial development activities of the United Nations ID/BjL.27 Note by the Executive Director concerning the pl"ovisional agenda for the second session of the Industrial Development Board 73 ID/B/L.28 India, Pakistan and United Arab Republic: amendment to doctUnent ID/B/L.26 ID/B/L.29 Statement made by Mr. Myer Coben, Assistant Administrator and Director, Bureau of Opera- tions and Programming of UNDP, at the 22nd meeting of the Industrial Development Board on 28 April 1967 ResolutiollS ID/B/RES/1 (I) Future programme of work and activities of the United Nations Industrial Development Or- ganizationf ID/B/RES/2 Cl) Financial questionsf Info1'11wtion series ID/B/INF.l ...... •.•List of documents ID/B/INF.2 ...... •.••.Explanatory note by the Executive Director on the agenda adopted by the Industrial Develop­ ment Board, 10 April 1967 ID/B/INF.3 ...... •..••.•••List and representatives and observersll' ID/B/INF.4 ...... •.••.•..•'••••• Check list of documents issued in connexion with the first session of the Industrial Development Board

11 See annex IU. b See annex VI. C See annex V. d See annex IV. e See annex VII. f See annex VIII. g See annex I.

I -I I

, r, 11 I

.j

\ r

74