COMMISSION OF THE EUROPEAN COMMUNITIES 
COM(89) 445 final 
Brussels, 21 September 1989 
Proposal for a 
COUNCIL DECISION 
concerning the conclusion of the Agreement establishing 
the Common Fund for commodities 
(presented by the Commission) 
EXPLANATORY MEMORANDUM 
Common Fund for commodities: conclusion of the 1960 Agreement 
Following the Commission's reoanmendation of 22 October 1960 for a Council 
Decision an Community participation In the Common Fund for commodities and 
the signing by the Community of the Agreement establishing the Fund 
(OOM(ÔO) 621 final) and the adoption of the Decision by the Council, the 
Community signed the Agreement, deposited with the Secretary-General of the 
United Nations In New York, on 21 October 1961. 
The Agreement stipulates that its entry into force is subject to the three following 
conditions : 
(a) ratification by at least 90 states; 
(b) subscription of at least two thirds of the directly contributed 
capital; 
(c) attainment of at least 50% of the target for pledges of voluntary 
contributions to the second aooount. 
Given that all these conditions have been met, a Council Decision is now 
needed for the conclusion of the 1960 Agreement, 
Moreover, pursuant to Article 57(1) of the Agreement a meeting has been 
palled for 19 June at the United Nations Secretariat In New York, bringing 
together the 64 countries which deposited the instruments of ratification 
before 30 September 1963, to determine the date on which the Agreement will 
effectively enter into force. This meeting, which duly took place, decided upon 
entry into force as from 19 June 1989. 
I 
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In view of the oommercial, economic and political importance of the 
Agreement, the Community and its Member States should speak with a single 
voice in the preparatory discussions and within the bodies set up under the 
Agreement. 
Such is the aim of this proposal for a Council Decision, which the 
Commission is asked to approve. 
PROPOSAL FOR A CttJMCTL DBCISICN 
Of 
concerning the conclusion of the Agreement establishing the 
Common Fund for commodities 
TEE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic Community, 
and in particular Articles 113 and 116 thereof, 
Having regard to the proposal from the Commission, 
Whereas the Agreement establishing the Common Fund for commodities was 
signed by the Community on 21 October 1981; 
Whereas it Is Important, therefore, that the Community and its Member 
States oonclude the Agreement establishing the Common Fund for commodities 
deposited with the Secretary-General of the United Nations Organization, 
HAS UMJ1DKD AS FOLLOWS: 
Article 1 
The Agreement establishing the Common Fund for commodities is hereby 
approved on behalf of the Community. 
The Community and those of its Member States which have completed the 
relevant internal procedures shall deposit the instruments of approval of 
the Agreement with the Secretariat-General of the United Nations. 
The text of the Agreement is annexed to this Decision. 
y 
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Article 2 
The President of the Council is hereby authorized to designate the person 
empowered to deposit the Instrument of approval on behalf of the Community. 
Article 3 
This Decision shall be published in the Official Journal of the European 
Communities. 
Done at Brussels, 
For the Council 
The President 
TD/IPC/CF/CONF/25 
AGREEMENT ESTABLISHING THE COMMON FUND 
FOR COMMODITIES 
UNITED NATIONS 
c 
NOTE 
Symbols of United Nations documents are composed of capital letters 
combined with figures. Mention of such a symbol indicates a reference to a 
United Nations document. 
TD/IPC/CF/CONF/25 
UNITED NATIONS PUBLICATION 
Sales No. E 81 II D 8 
Price: fU.S. 4.00 
3 
CONTENTS 
Part One 
Page 
Agreement establishing the Common Fund for Commodities .... 1 
Part Two 
Final Act of the United Nations Negotiating Conference on a Common 
Fund under the Integrated Programme for Commodities .... 27 
Annex: Resolution adopted by the Conference 30 
<? 
Ui 
Part One 
Agreement establishing the common fund for commodities 
CONTENTS 
PREAMBLE 
4niek 
I. Definitions CHATTER 1. DEPINT/IONS 
1 Objectives 
3. Functions CHAPTER 11. OBJECTIVES AND FUNCTIONS 
CHATTER III. MEMRERSHIP 
4. Eligibility .... 
5. Members .... 
6. Limitation of liability 
CHATTER IV. RELATIONSHIP OF KTOS AND ICBs WITH THE FUND 
7. Relationship of ICOs and ICBs with the Fund 
CHATTER V. CAPITAL AND OTHER RESOURCES 
9. Unit of Account and currencies 
9. Capital resources 
10. Subscription of Shares 
11. Payment of Shares 
12. Adequacy of subscription» of shares of Directl) Contributed Capital 
13. Voluntary contributions 
14. Resources deriving from the association of ICOs with the Fund . . 
A. Cash déposas 
B Guarantee Capital and Guarantees . . 
C Stock Warrants 
15. Borrowings 
CHAPTER VI. OPERATIONS 
16. General provisions 
A. Use of resources 
B. Two accounts 
C. The Special Reserve . . . 
D. General powers 
E General operating principles 
17. The First Account 
A. Resources 
B. Principles of First Account operations 
1 ? 
Article fag, 
C. The MFR 9 
D. Obligations to the Fund of Associated ICOs and of their participants .... 9 
E. Obligations of the Fund to Associated ICOs 10 
F. Default of Associated ICOs 10 
G. Liabilities arising from First Account borrowings 10 
H. Disposal by the Fund of forfeited stocks 10 
18. The Second Account 10 
A Resources 10 
B. Financial Limits Tor the Second Account 11 
C. Principles of Second Account operations II 
D. Borrowing for the Second Account II 
CHAPTER VII. ORGANIZATION AND MANAGEMENT 
19. Structure of the Fund 
20. Governing Council 
21. Voting in the Governing Council 
22 Executive Board 
23. Voting in the Executive Board 
24. Managing Director and staff 
25. Consultative Committee 
26. Budgetary and audit provisions 
27. Location of headquarters 
28. Publication of reports 
29. Relations with the United Nations and other organizations 
CHAPTER VIII. WITHDRAWAL AND SUSPENSION OF MEMBERSHIP AND WITHDRAWAL 
OF ASSOCIATED ICOS 
30. Withdrawal of Members 14 
31. Suspension of membership 14 
31 Settlement of accounts 14 
33. Withdrawal of Associated ICOs 15 
CHAPTER IX. SUSPENSION AND TERMINATION OF OPERATIONS AM» armEssENT 
OF OtUGATIONS 
34. Temporary suspension of operations 
35. Termination of operations 
36. Settlement of obligations: general provisions 
37. Setdement of obligations: First Account 
38. Settlement of obligations: Second Account 
39. Settlement of obligations: other assets of the Fund 
CHAPTER X. STATUS, PRIVILEGES AND IMMUNITIES 
40. Purposes W 
41. Legal status of the Fund 16 
42. Immunity from juridical proceedings 16 
43. Immunity of assets from other actions 17 
44. Immunity of archives 17 
45. Freedom of assets from icsuietiuat 17 
46. Privileges for communications 17 
47. Immunities and privileges of specified individuals 17 
48. Immunities from taxation 17 
49. Waiver of immunities, exemptions and privileges 17 
50. Application of this chapter 18 
CHAPTER XI. AMENDMENTS 
51. Amendments 18 
CHAPTER XII. INTERPRÉTATION AND ARBITRATION 
52. 
53. Interpretation 
Arbitration 18 
18 
,'-') O 
Arttck CHAPTER XIII. FINAL PROVISIONS *t* 
54. Signature and ratification, acceptance or approval 19 
55. Depositary 19 
56. Accession 19 
57. Entry into force 19 
58. Reservations 19 
SCHEDULES 
A Subscriptions of Shares of Directly Contributed Capital 20 
B. Special arrangements for the least developed countries pursuant to article 11, para­
graph 6 23 
C. Eligibility criteria for ICBs 23 
D. Allocation of vota 23 
£ Election of Executive Directors 25 
F. Unit of Account 26 
NOTE: For the purposes of article 11, the conversion rates for Usable Currencies in terms of 
the Unit of Account, as at the date of the Agreement (27 June 1980). are as follows. 
Cmrwrncy 
Deutsche mark . . 
French fiant. 
Japanese yen . . 
Pound sterling . . 
United States dollar Cmrrtncy mmio 
ft* Umi tfAemmi 
2.33306 
5.42029 
287.452 
a563927 
1.32162 
Preamble 
The Parties. 
Determined to promote economic co-operation and 
understanding among all States, particularly between 
developed and developing countries, based on the 
principles of equity ana sovereign equality and there­
by to contribute to the establishment of a New Inter­
national Economic Order. 
Recognizing the need for improved forms of inter­
national co-operation in the field of commodities as 
an essential condition for the establishment of a New 
International Economic Order, aimed at promoting 
economic and social development, particularly of de­
veloping countries. 
Desirous of promoting global action to improve 
market structures in international trade in com­
modities of interest to developing countries, 
Recoiling resolution 93 (IV) on the Integrated Pro­
gramme for Commodities adopted at the fourth ses­
sion of the United Nations Conference on Trade and 
Development (hereinafter referred to as UiyCTAD), 
Have agreed to establish hereby the Common 
Fund for Commodities, which shall operate in accor­
dance with the following provisions: Chapter I. Definitions 
Article J 
DEFINITIONS 
For the purposes of this Agreement : 
1. "Fund" means the Common Fund for Com­
modities established by this Agreement. 
2 "International Commodity Agreement or Ar­
rangement" (hereinafter referred to as ICA) means 
any intergovernmental agreement or arrangement to 
promote international co-operation in a commodity. 
the parties to which include producers and consum­
ers covering the bulk of world trade in the com­
modity concerned. 
3. "International Commodity Organization" 
(hereinafter referred to as ICO) means the organiza­
tion established by an ICA to implement the provi­
sions of the ICA. 
4. "Associated ICO" means an ICO which is as­
sociated with the Fund pursuant to article 7. 
5. "Association Agreement" means the agree­
ment entered into between an ICO and the Fund 
pursuant to article 7. 
4* 
6. "Maximum Financial Requirements" (here­
inafter referred to as MFR) means the maximum 
amount of funds that may be drawn and borrowed 
by an Associated ICO from the Fund, to be deter­
mined in accordance with article 17, paragraph 8. 
7. "International Commodity Body" (hereinafter 
referred to as ICB) means a body designated in ac­
cordance with article 7, paragraph 9. 
8. "Unit of Account" means the unit of account 
of the Fund as defined in accordance with article 8. 
paragraph 1. 
9. "Usable Currencies" means (a) the deutsche 
mark, the French franc, the Japanese yen. the pound 
sterling, the United States dollar and any other cur­
rency which has been designated from time to time 
by a competent international monetary organization 
as being in fact widely used to make payments for 
international transactions and widely traded in the 
principal exchange markets, and (b) any other freely 
available and effectively usable currency which the 
Executive Board may designate by a Qualified Ma­
jority after the approval of the country whose cur­
rency the Fund proposes to designate as such. The 
Governing Council shall designate a competent in­
ternational monetary organization under (a) above 
and shall adopt by a Qualified Majority rules and 
regulations regarding the designation of currencies 
under (b) above, in accordance with prevailing inter­
national monetary practice. Currencies may be re­
moved from the list of Usable Currencies by the Exe­
cutive Board by a Qualified Majority. 
10. "Directly Contributed Capital" means capital 
specified in article 9, paragraph 1 (a) and para­
graph 4. 
11. "Paid-in Shares" means the shares of 
Directly Contributed Capital specified in article 9. 
paragraph 2 (a), and article 10. paragraph 2. 
12. "Payable Shares" means the shares of 
Directly Contributed Capital specified in article 9. 
paragraph 2 (£), and article 10, paragraph 2 (b). 
13. "Guarantee Capital" means capital provided 
to the Fund, pursuant to article 14, paragraph 4. by 
Members of the Fund participating in an Associated 
ICO. 
14. "Guarantees" means guarantees provided to 
the Fund, pursuant to article 14. paragraph 5. by par­
ticipants in an Associated ICO which are not Mem­
bers of the Fund. 
15. "Stock Warrants" means stock warrants, 
warehouse receipts or other documents of title 
evidencing ownership of commodity stocks. 
16. "Total voting power" means the sum of the 
votes held by all the Members of the Fund. 
17. "Simple Majority" means more than half of 
all votes cast. 
18. "Qualified Majority' 
thirds of all votes cast. means at least two 
19. "Highly Qualified Majority" means at least 
three fourths of all votes cast. 
20. 
votes. Votes cast" means affirmative and negative Chapter II. Objectives and functions 
Article 2 
OBJECTIVES 
The objectives of the Fund shall be: 
(a) To serve as a key instrument in attaining the 
agreed objectives of the Integrated Programme for 
Commodities as embolied in resolution 93 (IV) of 
UNCTAD; 
(b) To facilitate the conclusion and functioning of 
ICAs. particularly concerning commodities of special 
interest to developing countries. 
Article 3 
FUNCTIONS 
In fulfilment of its objectives, the Fund shall exer­
cise the following functions: 
(a) To contribute, through its First Account as 
hereinafter provided, to the financing of interna­
tional buffer stocks and internationally co-ordinated 
national stocks, all within the framework of ICAs; 
(b) To finance, through its Second Account. 
measures in the field of commodities other than 
stocking, as hereinafter provided; 
(c) To promote co-ordination and consultation 
through its Second Account with regard to measures 
in the field of commodities other than stocking, and 
their financing, with a view to providing a com­
modity focus. 
Chapter III. Membership 
Article 4 
ELIGIBILITY 
Membership in the Fund shall be open to: 
(a) All States Members of the United Nations or of 
any of its specialized agencies or of the International 
Atomic Energy Agency; and 
(b) Any intergovernmental organization of re­
gional economic integration which exercises compe­
tence in fields of activity of the Fund. Such inter­
governmental organizations shall not be required to 
undertake any financial obligations to the Fund; nor 
shall they hold any votes. 
Article 5 
MEMBERS 
The Members of the Fund (hereinafter referred to 
as Members) shall be: 
(a) Those States which have ratified, accepted or 
approved this Agreement in accordance with article 
54; 
(b) Those States which have acceded to this Agree­
ment in accordance with article 56; 
y\Z 
(c) Those intergovernmental organizations refer­
red to in article 4 (b) which have ratified, accepted or 
approved this Agreement in accordance with article 
54; 
(d) Those intergovernmental organizations refer­
red to in article 4 (b) which have acceded to this 
Agreement in accordance with article 56. 
Article 6 
LIMITATION OF LIABILITY 
No member shall be Liable, by reason only of its 
membership, for acts or obligations of the Fund. 7. An Associated ICO may, if the Association Ag­
reement so provides and with the consent of the pre­
ceding Associated ICO covering the same com­
modity, succeed to the rights and obligations of the 
preceding Associated ICO. 
8. The Fund shall not intervene directly in com­
modity markets. However, the Fund may dispose of 
commodity stocks only pursuant to article 17, para­
graphs 15 to 17. 
9. For the purpose of the Second Account, the 
Executive Board shall from time to time designate 
appropriate commodity bodies, including ICOs. 
whether or not they are Associated ICOs. as ICBs. 
provided that they meet the criteria set out in sched­
ule C. 
Chapter IV. Relationship of ICOs and ICBs 
with the Fund Chapter V. Capital and other resources 
Article 7 
RELATIONSHIP OF ICOs AND ICBs WITH THE FUND 
1. The facilities of the Fund's First Account shall 
be used only by ICOs established to implement the 
provisions of ICAs providing for either international 
buffer stocks or internationally co-ordinated national 
stocks, and which have concluded an Association Ag­
reement. The Association Agreement shall comply 
with the terms of this Agreement and of any rules 
and regulations consistent therewith to be adopted 
by the Governing Council. 
2. An ICO established to implement the provi­
sions of an ICA which provides for international 
buffer stocks may become associated with the Fund 
for the purposes of the First Account, provided that 
the ICA is negotiated or renegotiated on. and con­
forms to, the principle of joint ouffer stock financing 
by producers and consumers participating therein. 
For the purposes of this Agreement, levy-financed 
ICAs shall be eligible for association with the Fund. 
3. A proposed Association Agreement shall be 
Sresented by the Managing Director to the Executive 
oard and, with the recommendation of the Board, 
to the Governing Council for approval by a 
Qualified Majority. 
4. In carrying out the provisions of the Associ­
ation Agreement between the Fund and an Asso­
ciated ICO each institution shall respect the auto­
nomy of the other. The Association Agreement shall 
specify the mutual rights and obligations of the Fund 
and the Associated ICO, in terms consistent with the 
relevant provisions of this Agreement 
5. An Associated ICO shall be entitled to borrow 
from the Fund through its First Account without pre­
judice to its eligibility to obtain financing from the 
Second Account, provided that the Associated ICO 
and its participants have performed and are duly 
performing their obligations to the Fund. 
6. An Association Agreement shall provide for a 
settlement of accounts between the Associated ICO 
and the Fund before any renewal of the Association 
Agreement Article 8 
UNIT OF ACCOUNT AND CURRENCIES 
1. The Unit of Account of the Fund shall be as 
defined in schedule F. 
2. The Fund shall hold, and conduct its financial 
transactions in. Usable Currencies. Except as 
provided in article 16, paragraph 5 (b\ no Member 
shall maintain or impose restrictions on the holding. 
use or exchange by the Fund of Usable Currencies 
deriving from: 
(a) Payment of subscriptions of Shares of Directly 
Contributed Capital; 
(b) Payment of Guarantee Capital, cash in lieu of 
Guarantee Capital, Guarantees or cash deposits re­
sulting from the association of ICOs with the Fund; 
(c) Payment of voluntary contributions; 
(d) Borrowing; 
(e) Disposal of forfeited stocks, pursuant to article 
17, paragraphs 15 to 17; 
(/) Payment on account of principal, income, in­
terest or other charges in respect of loans or invest­
ments made out of any of the funds referred to in 
this paragraph. 
3. The Executive Board shall determine the 
method of valuation of Usable Currencies, in terms 
of the Unit of Account, in accordance with prevailing 
international monetary practice. 
Article 9 
CAPITAL RESOURCES 
1. The capital of the Fund shall consist of: 
(a) Directly Contributed Capital to be divided into 
47,000 Shares to be issued by the Fund, having a par 
value of 7,566.47145 Units of Account each and a 
total value of 355,624,158 Units of Account; and 
(b) Guarantee Capital provided directly to the 
Fund in accordance with article 14, paragraph 4. 
-1J 
2. The Shares to be issued by ihe Fund shall be 
divided m«:o: 
(a) 37,DOO Paid-in Shares; and 
ib) 10,000 Payable Shares. 
3. Shares of DirecUy Contributed Capital shall be 
available for subscription only by Members in accor­
dance with the previsions of article 10, 
4. Tht Shares of Directly Contributed Capital: 
(a) Shall, if necessary, be increased by the Govern­
ing Council upon the accession of any State under 
article -56; 
(b) May be increased by the Governing Council in 
accordance with article 12; 
(c) Shall be increased by the amount needed pur­
suant io article 17, paragraph 14. 
5. If the Governing Council makes available for 
subscription the unsubscribed Shares of Directly 
Contributed Capital pursuant to article 12, para­
graph 3. or increases the Shares of Directly Con­
tributed Capital pursuant to paragraph 4 (b) or 4 (c) 
of this article, each Member shall have the right, but 
shall not be required, to subscribe such Shares. 
Article 10 
SUBSCRIPTION OF SHARES 
1. Each Member referred to in article 5 (a) shall 
subscribe, as set forth in schedule A: 
(a) 100 Paid-in Shares; and 
(b) Any additional Paid-in and Payable Shares. 
2. Each Member referred to in article 5 (b) shall 
subscribe: 
(a) 100 Paid-in Shares; and 
(b) Any additional Paid-in and Payable Shares to 
be determined by the Governing Council by a 
Qualified Majority in a manner consistent with the 
allocation of Shares in schedule A and in accordance 
with the terms and conditions agreed pursuant to art­
icle 56. 
3. Each Member may allocate to the Second Ac­
count a part of its subscription under paragraph 1 (a) 
of this article with a view to an aggregate allocation 
to the Second Account, on a voluntary basis, of not 
less than 52,965.300 Units of Account 
4. Shares of Directly Contributed Capital shall 
not be pledged or encumbered by Members in any 
manner whatsoever and shall be transferable only to 
the Fund. 
Article JI 
PAYMENT OF SHARES 
1. Payments of Shares of Directly Contributed 
Capital subscribed by each Member shall be made: 
(a) In any Usable Currency at the rate of conver­
sion between that Usable Currency and the Unit of 
Account as at the date of payment; or 
(b) In a Usable Currency selected by that Member 
at the time of deposit of its instrument of ratification. 
acceptance or approval, and at the rate of conversion 
between that Usable Currency and the Unit of Ac­count as at the date of this Agreement The Gov»fl­
ing Council shall adopt rules and regulations cover­
ing the payment of subscriptions in Uss.blt Curren­
cies in the case of designation of additional Usable 
Currencies or removal of UsaMe Currencies from ihe 
list of Usable Currencies in accordance with article 1, 
definition 9. 
At the time of deposit of its instrument of ratifica­
tion, acceptance or approval, each Member shall 
select one of the procedures above, which shall apply 
to all such payments. 
2. When undertaking any review in accordance 
with article 12, paragraph 2, the Governing Council 
shall review the operation of the method of payment 
referred to in paragraph I of this article, in the light 
of exchange-rate fluctuations, and. taking into ac­
count developments in the practice of international 
lending institutions, shall decide by a Highly 
Qualified Majority on changes, if any, in the method 
of payment of subscriptions of any additional Shares 
of Directly Contributed Capital subsequently issued 
in accordance with article 12. paragraph 3. 
3. Each Member referred to in article 5 (a) shall: 
(a) Pay 30 per cent of its total subscription of 
Paid-in Shares within 60 days after the entry into 
force of this Agreement, or within 30 davs after the 
date of deposit of its instrument of ratification, ac­
ceptance or approval, whichever is later; 
(b) One year after the payment provided for in 
subparagraph (a) above, pay'20 per cent of its total 
subscription of Paid-in Snares and deposit with the 
Fund irrevocable, non-negotiable, non-interest-bear­
ing promissory notes in an amount of 10 per cent of 
its total subscription of Paid-in Shares. Such notes 
shall be encashed as and when decided by the Execu­
tive Board; 
(c) Two years after the payment provided for in 
subparagraph (a) above, deposit with the Fund irre­
vocable, non-negotiable, non-interest-bearing pro­
missory notes in an amount of 40 per cent of its total 
subscription of Paid-in Shares. 
Such notes shall be encashed as and when decided 
by the Executive Board by a Qualified Majority, hav­
ing due regard to the operational needs of the Fund, 
except that the promissory notes in respect of Shares 
allocated to the Second Account shall be encashed as 
and when decided by the Executive Board. 
4. The amount subscribed by each Member for 
Payable Shares shall be subject to call by the Fund 
only as provided in article 17, paragraph 12. 
5. Calls on Shares of Directly Contributed Cap­
ital shall be made pro rata from all Members with 
respect to whichever class or classes of Shares are 
being called, except as provided for in paragraph 3 
(c) of this article. 
6. Special arrangements for payment of subscrip­
tions of Shares of Directly Contributed Capital by 
the least developed countries shall be as set forth in 
schedule B. 
7. Subscriptions of Shares of Directly Con­
tributed Capital may, when relevant, be paid by the 
appropriate agencies of Members concerned. 
^ 
Article 12 
ADEQUACY OF SUBSCRIPTIONS OF SHARES OF DIRECTLY 
CONTRIBUTED CAPITAL 
1. In the event that 18 months after the entry into 
force of this Agreement subscriptions of Shares of 
Directly Contributed Capital fall short of the amount 
specified in article 9, paragraph 1 (a), the adequacy 
of the subscriptions shall be reviewed by the Govern­
ing Council as soon as possible thereafter. 
2. The Governing Council shall further review, at 
such intervals as it may deem appropriate, the 
adequacy of the Directly Contributed Capital avail­
able to the First Account. The first such review shall 
take place not later than the end of the third year 
after the entry into force of this Agreement. 
3. As a result of any review under paragraph 1 or 
2 of this article, the Governing Council may decide 
to make available for subscription unsubscribed 
Shares or to issue additional Shares of Directly Con­
tributed Capital on a basis of assessment to be de­
cided by the Governing Council. 
4. Decisions by the Governing Council under this 
article shall be taken by a Highly Qualified Majority. 
Article 13 
VOLUNTARY CONTRIBUTIONS 
1. The Fund may accept voluntary contributions 
from Members and other sources. Such contributions 
shall be paid in Usable Currencies. 
2. The target for the initial voluntary contribu­
tions for use in the Second Account shall be 
211.861.200 Units of Account, in addition to the allo­
cation made in accordance with article 10. para­
graph 3. 
3. (a) The Governing Council shall review the 
adequacy of the resources of the Second Account not 
later than the end of the third year after the entry 
into force of this Agreement. In the light of the ac­
tivities of the Second Account, the Governing Coun­
cil may also undertake such a review at such other 
times as it decides. 
(b) In the light of any such reviews, the Governing 
Council may decide to replenish the resources of the 
Second Account and make the necessary arrange­
ments. Any such replenishments shall be voluntary 
for Members and in accordance with this Agreement. 
4. Voluntary contributions shall be made without 
restrictions as to their use by the Fund, except as to 
their designation by the contributor for use in the 
First or Second Account. 
Article 14 
RESOURCES DERIVING FROM THE ASSOCIATION OF ICOs 
WITH THE FUND 
A. Cash deposits 
1. Upon the association of an ICO with the Fund, 
the Associated ICO shall, except as specified in para­
graph 2 of this article, deposit with the Fund in cash 
m Usable Currencies, and for the account of that Associated ICO, one third of its MFR. Such deposit 
shall be made in full or in instalments as the Asso­
ciated ICO and the Fund may agree, taking into ac­
count all relevant factors, including the Funds liqui­
dity position, the need for maximizing the financial 
benefit to be derived from the availability of cash 
deposits of Associated ICOs and the capacity of the 
Associated ICO concerned to raise the cash required 
for meeting its deposit obligation. 
2. An Associated ICO which is holding stocks at 
the time of its association with the Fund may meet a 
part or all of its deposit obligation under paragraph 
1 of this article by pledging to, or assigning in trust 
for, the Fund Stock Warrants of equivalent value. 
3. An Associated ICO may deposit with th* 
Fund, on mutually acceptable terms and conditions. 
any cash surplus, in addition to deposits made under 
paragraph 1 of this article. 
B. Guarantee Capital and Guarantees 
4. Upon the association of an ICO with the Fund. 
Members participating in that Associated ICO shall 
provide directly to the Fund Guarantee Capital on a 
oasis determined by the Associated ICO and satisfac­
tory to the Fund. The aggregate value of the 
Guarantee Capital, and any Guarantees or cash 
provided under paragraph 5 of this article shall equal 
two thirds of the MFR of that Associated ICO. ex­
cept as provided for in paragraph 7 of this article 
Guarantee Capital may. when relevant, be provided 
by the appropriate agencies of the Members con­
cerned, on a basis satisfactory to the Fund. 
5. If participants in an Associated ICO are not 
Members, that Associated ICO shall deposit cash 
with the Fund, in addition to the cash referred to in 
paragraph 1 of this article, in the amount of the 
Guarantee Capital which such participants would 
have provided had they been Members; except that 
the Governing Council may by a Highly Qualified 
Majority permit that Associated ICO to arrange 
either for the provision of additional Guarantee Cap­
ital of the same amount by Members participating 
in that Associated ICO. or for the provision of 
Guarantees of the same amount by participants in 
that Associated ICO which are not Members Such 
Guarantees shall carry financial obligations compar­
able to those of Guarantee Capital and shall be in a 
form satisfactory to the Fund. 
6. Guarantee Capital and Guarantees shall be 
subject to call by the Fund only in accordance with 
article 17, paragraphs 11 to 13. Payment of such 
Guarantee Capital and Guarantees shall be made m 
Usable Currencies. 
7. If an Associated ICO is meeting its deposit ob­
ligation in instalments pursuant to paragraph 1 of 
this article, such Associated ICO and its participants 
shall, upon the payment of each instalment, provide. 
as appropriate. Guarantee Capital, cash or Guaran­
tees, m accordance with paragraph 5 of this article. 
which in the aggregate shall equal twice thé amount 
of that instalment. 
C. Stock Warrants 
8. An Associated ICO shall pledge to. or assign in 
trust for. the Fund all Stock Warrants of com-
rl r 
modities purchased with the proceeds of withdrawals 
of cash deposits made under paragraph 1 of this art­
icle, or with the proceeds of loans obtained from the 
Fund, as security for the payment by the Associated 
ICO of its obligations to the Fund. The Fund shall 
dispose of stocks only in accordance with article 17, 
paragraphs 15 to 1/. Upon the sale of the com­
modities evidenced by such Stock Warrants, the As­
sociated ICO shall apply the proceeds of such sales 
first to repay the balance due on any loan to the 
Associated ICO from the Fund and then to meet its 
cash deposit obligation in accordance with para­
graph 1 of this article. 
9. All Stock Warrants pledged to. or assigned in 
trust for, the Fund shall be valued, for the purposes 
of paragraph 2 of this article, on a basis specified in 
rules and regulations adopted by the Governing 
Council. 
Article 15 
BORROWINGS 
The Fund may borrow in accordance with article 
16. paragraph 5 (a), provided that the total outstand­
ing amount of borrowings by the Fund for its First 
Account operations shall not at any time exceed an 
amount representing the aggregate of: 
(a) The uncalled portion of Payable Shares; 
(b) The uncalled Guarantee Capital and Guaran­
tees of participants in Associated ICOs under article 
14, paragraphs 4 to 7; and 
(c) The Special Reserve established pursuant to 
article 16. paragraph 4. 
Chapter VI. Operations 
Article 16 
GENERAL PROVISIONS 
A. Use of resources 
1. The resources and facilities of the Fund shall 
be used exclusively to achieve its objectives and fulfil 
its functions. 
B. Two accounts 
2 The Fund shall establish, and maintain its re­
sources in, two separate Accounts: a First Account, 
with resources as provided for in article 17, para­
graph 1, to contribute to the financing of commodity 
stocking; and a Second Account, with resources as 
provided for in article 18, paragraph 1, to finance 
measures in the field of commodities other than 
stocking, without jeopardizing the integral unity of 
the Fund. Such separation of Accounts shall be re­
flected in the financial statements of the Fund. 
3. The resources of each Account shall be held, 
used, committed, invested or otherwise disposed of 
entirely separately from the resources of tne other 
Account. The resources of one Account shall not be charged with losses, or used to discharge liabilities, 
arising out of the operations or other activities of the 
other Account 
C The Special Reserve 
4. The Governing Council shall establish, out of 
the earnings of the First Account, net of administra­
tive expenses, a Special Reserve, not exceeding 10 
per cent of Directly Contributed Capital allocated to 
the First Account, for meeting liabilities arising from 
First Account borrowings, as provided for in article 
17, paragraph 11 Notwithstanding the provisions of 
paragraphs 2 and 3 of this article, the Governing 
Council shall decide by a Highly Qualified Majority 
how to dispose of any net earnings not allocated to 
the Special Reserve. 
D. General powers 
5. In addition to any powers set forth elsewhere 
in this Agreement, the Fund may exercise the follow­
ing powers in connexion with its operations, subject 
to and consistent with general operating principles 
and the terms of this Agreement: 
(a) To borrow from Members, international finan­
cial institutions and, for First Account operations, in 
capital markets, in accordance with the law of the 
country in which the borrowing is made, provided 
that the Fund shall have obtained the approval of 
such country and of any country in the currency of 
which the borrowing is denominated; 
(b) To invest funds at any time not needed for its 
operations in such financial instruments as the Fund 
may determine, in accordance with the law of the 
country in whose territory the investment is made; 
(c) To exercise such other powers necessary to 
further its objectives and functions and to implement 
the provisions of this Agreement 
E General operating principles 
6. The Fund shall operate according to the provi­
sions of this Agreement and any rules and regula­
tions which the Governing Council may adopt pursu­
ant to article 20. paragraph 6. 
7. The Fund shall make arrangements to ensure 
that the proceeds of any loan or grant made or par­
ticipated in by the Fund is used only for the purposes 
for which the loan or grant was made. 
8. Every security issued by the Fund shall bear 
on its face a conspicuous statement to the effect that 
it is not the obligation of any Member unless ex­
pressly stated otherwise on the security. 
9. The Fund shall seek to maintain reasonable 
diversification in its investments. 
10. The Governing Council shall adopt suitable 
rules and regulations for the procurement of goods 
and services from the resources of the Fund. Such 
rules and regulations shall conform, as a general rule. 
of the principles of international competitive bidding 
among suppliers in the territories of Members, and 
shall give appropriate preference to experts, techni­
cians and suppliers from developing countries 
Members of the Fund. 
AC 
11. The Fund shall establish close working rela­
tionships with international and regional financial 
institutions and may, as is practicable, establish such 
relationships with national entities of Members, 
whether public or private, which are concerned with 
investment of development funds in commodity de­
velopment measures. The Fund may participate in 
co-financing with such institutions. 
11 In its operations and within its sphere of com­
petence, the Fund shall co-operate with ICBs and 
Associated ICOs in the protection of the interests of 
developing importing countries, if such countries are 
adversely affected by measures under the Integrated 
Programme for Commodities. 
13. The Fund shall operate in a prudent manner, 
shall take actions it deems necessary' to conserve and 
safeguard its resources ans shall not engage in cur­
rency speculation. 
Article 17 
THE FIRST ACCOUNT 
A. Resources 
1. The resources of the First Account shall consist 
of: 
(a) Subscriptions by Members of Shares of 
Directly Contributed Capital, except such part of 
their subscriptions as may be allocated to the Second 
Account in accordance with article 10. paragraph 3; 
(b) Cash deposits from Associated ICOs pursuant 
to article 14. paragraphs 1 to 3; 
(c) Guarantee Capital, cash in lieu of Guarantee 
Capital and Guarantees provided by participants in 
Associated ICOs pursuant to article 14, paragraphs 4 
to 7; 
(d) Voluntary contributions allocated to the First 
Account; 
(e) Proceeds of borrowings pursuant to article 15; 
(/) Net earnings which may accrue from oper­
ations of the First Account; 
(g) The Special Reserve referred to in article 16. 
paragraph 4; 
(h) Stock Warrants from Associated ICOs pursuant 
to article 14, paragraphs 8 and 9. 
B. Principles of First Account operations 
1 The Executive Board shall approve the terms 
of borrowing arrangements for First Account oper­
ations. 
3. Directly Contributed Capital allocated to the 
First Account shall be employed: 
(a) To enhance the creditworthiness of the Fund in 
respect of its First Account operations; 
(b) As working capital, to meet the short-term 
Liquidity needs of the First Account; and 
(c) To provide revenues to cover the administrative 
expenses of the Fund. 
4. The Fund shall charge interest on loans made 
to Associated ICOs at rates as low as are consistent with its ability to obtain finance and with the need to 
cover its costs of borrowing for funds lent to such 
Associated ICOs. 
5. The Fund shall pay interest on all other cash 
balances of Associated ICOs at appropriate rates 
consistent with the return on its financial invest­
ments, and taking into account the rate charged on 
loans to Associated ICOs and the cost of borrowing 
for First Account operations. 
6. The Governing Council shall adopt rules and 
regulations laying down the operating principles 
within which it shall determine interest rates charged 
and paid in accordance with paragraphs 4 and 5 of 
this article. In so doing the Governing Council shall 
be guided by the need to maintain the financial via­
bility of the Fund and shall bear in mind the prin­
ciple of non-discriminatory treatment as between 
Associated ICOs. 
C. The MFR 
7. An Association Agreement shall specify the 
MFR of the Associated ICO and the steps to be 
taken in the event of modification of its MFR. 
8. The MFR of an Associated ICO shall include 
the acquisition cost of stocks, determined by multi­
plying the authorized size of its stocks as specified in 
the Association Agreement by an appropriate pur­
chase price as determined by that Associated ICO. In 
addition, an Associated ICO may include in its MFR 
specified carrying costs, exclusive of interest charges 
on loans, in an amount not exceeding 20 per cent of 
the acquisition cost. 
D. Obligations to the Fund of Associated ICOs 
and of their participants 
9. An Association Agreement shall provide, inter 
alia: 
(a) For the manner in which the Associated ICO 
and its participants shall undertake the obligations to 
the Fund specified in article 14 in respect of deposits. 
Guarantee Capital, cash in lieu of Guarantee Ca­
pital, and Guarantees, and Stock Warrants: 
(b) That the Associated ICO shall not borrow from 
any third party for its buffer stocking operations, un­
less the Associated ICO and the Fund have reached 
mutual agreement on a basis by the Executive Board: 
(c) That the Associated ICO shall at all times be 
responsible, and liable to the Fund, for the main­
tenance and preservation of stocks for which Stock 
Warrants have been pledged to. or assigned in trust 
for. the Fund, and shall maintain adequate insurance 
on, and appropriate security and other arrangements 
with respect to, the holding and handling of such 
stocks; 
(</) That the Associated ICO shall enter into ap­
propriate credit agreements with the Fund specifying 
the terms and conditions of any loan from the Fund 
to that Associated ICO, including the arrangements 
for repayment of principal and payment of interest. 
(e) That the Associated ICO shall, as appropriate. 
keep the Fund informed of conditions and develop­
ments in the commodity markets with which the As­
sociated ICO is concerned. 
-'-; 
E Obligations of the Fund to Associated ICOs 
10. An Association Agreement shall also provide, 
inter alia: 
(j)That. subject to the provisions of paragraph 11 
(a) of this article, the Fund shall provide for with­
drawal by the Associated ICO on demand, in whole 
or in part of the amounts deposited pursuant to art­
icle 14, paragraphs 1 and 2; 
(b) That the Fund shall make loans to the Asso­
ciated ICO in an aggregate principal amount not 
exceeding the sum of the uncalled Guarantee Cap­
ital, cash in lieu of Guarantee Capital, and Guaran­
tees provided by participants in the Associated ICO 
by virtue of their participation in that Associated 
ICO pursuant to article 14, paragraphs 4 to 7; 
(c) That withdrawals and borrowings by each As­
sociated ICO pursuant to subparagraphs (a) and (b) 
above shall be used only to meet stocking costs in­
cluded in the MFR in accordance with paragraph 8 
of this article. Not more than any amount included 
in the MFR of each Associated ICO to meet specified 
carrying costs in accordance with paragraph 8 of this 
article shall be used to meet such costs; 
(d) That, except as provided for in paragraph 11 (c) 
of this article, the Fund shall promptly make Stock 
Warrants available to the Associated ICO for use in 
its buffer stock sales; 
(e) That the Fund shall respect the confidentiality 
of information provided by the Associated ICO. 
F. Default of Associated ICOs 
11. In the event of imminent default by an Asso­
ciated ICO on any of its borrowings from the Fund, 
the Fund shall consult with that Associated ICO on 
measures to avoid such a default. To meet any de­
fault by an Associated ICO. the Fund shall have re­
course to the following resources, in the following 
order, up to the amount of the default: 
(a) Any cash of the defaulting Associated ICO held 
in the Fund; 
(b) Proceeds of pro rata calls of Guarantee Capital 
and Guarantees provided by participants in the de­
faulting Associated ICO by virtue of their participa­
tion in that Associated ICO; 
(c) Subject to paragraph 15 of this article, any 
Stock Warrants pledged to, or assigned in trust for, 
the Fund by the defaulting Associated ICO. 
G. Liabilities arising from First Account bommings 
11 In the event that the Fund cannot otherwise 
meet its liabilities in respect of its First Account bor­
rowings, it shall meet such liabilities out of the fol­
lowing resources in the following order; provided 
that if an Associated ICO shall have failed; to meet 
its obligations towards the Fund, the Fund shall have 
already, to the fullest extent possible, made use of 
the resources referred to in paragraph 11 of this ar­
ticle: 
(a) The Special Reserve; 
(b) Proceeds of subscriptions of Paid-in Shares al­
located to the First Account; (c) Proceeds of subscriptions of Payable Shares; 
(d) Proceeds of pro rata calls of Guarantee CapitJ 
and Guarantees provided by participants in a de­
faulting Associated ICO by virtue of their participa­
tion in other Associated ICOs. 
Payments made by participants in Associated ICOs 
in accordance with (d) above shall be reimbursed by 
the Fund as soon as possible from resources provided 
in accordance with paragraphs 11, 15, 16 and 17 of 
this article; any such resources remaining after such 
reimbursement shall be used to reconstitute in re­
verse order, the resources referred to in (a), (b) and 
(c) above. 
13. The proceeds of pro rata calls of all 
Guarantee Capital and Guarantees shall be used by 
the Fund, following recourse to the resources listed 
in paragraph 12 {a), (b) and (c) of this article, to meet 
any of its liabilities other than liabilities arising from 
the default of an Associated ICO. 
14. To enable the Fund to meet any liabilities 
which may be outstanding after recoursé to the re­
sources mentioned in paragraphs 12 and 13 of this 
article, the Shares of Directly Contributed Capital 
shall be increased by the amount needed to meet 
such liabilities and the Governing Council shall be 
convened in an emergency session to decide upon the 
modalities for such increase. 
H. Disposal by the Fund of forfeited stocks 
15. The Fund shall be free to dispose of com­
modity stocks forfeited to it by a defaulting Asso­
ciated ICO pursuant to paragraph 11 of this article. 
provided that the Fund shall seek to avoid distress 
sales of such stocks by postponing the sales to the 
extent consistent with the need to avoid default on 
the Fund's own obligations. 
16. The Executive Board shall at appropriate in­
tervals review disposals of stocks to which the Fund 
has recourse in accordance with paragraph 11 (c) of 
this article, in consultation with the Associated ICO 
concerned, and shall decide by a Qualified Majority 
whether to postpone such disposals. 
17. The proceeds of such disposals of stocks shall 
be used first to meet any liabilities of the Fund in­
curred in its First Account borrowings in respect of 
the Associated ICO concerned, and then to reconsti­
tute, in the reverse order, the resources listed under 
paragraph 12 of this article. 
Article 18 
THE SECOND ACCOUNT 
A. Resources 
1. The resources of the Second Account shall 
consist of: i 
i 
(a) The part of Directly Contributed Capital allo­
cated to the Second Account in accordance with ar­
ticle 10, paragraph 3; 
(b) Voluntary contributions made to the Second 
Account; 
10 
/ 1^ 
-1 
(c) Such net income as may accrue from time to 
time in the Second Account; 
(d) Borrowings; 
(e) Any other resources placed at the disposal of, 
received or acquired by. the Fund for its Second Ac­
count operations pursuant to this Agreement. 
B. Financial limits for the Second Account 
2. ' The aggregate amount of loans and grants 
made, and of participations therein, by the Fund 
through its Second Account operations shall not 
exceed the aggregate amount of the resources of the 
Second Account. 
C. Principles of Second Account operations 
3. The Fund may make or participate in loans 
and. except for that portion of the Directly Con­
tributed Capita] allocated to the Second Account, 
grants for the financing of measures in the field of 
commodities other than stocking from the resources 
of the Second Account, subject to the provisions of 
this Agreement and in particular to the following 
terms and conditions: 
(a) The measures shall be commodity development 
measures, aimed at improving the structural condi­
tions in markets and at enhancing the long-term 
competitiveness and prospects of particular com­
modities. Such measures shall include research and 
development, productivity inprovements. marketing 
and measures designed to assist, as a rule by means 
of joint financing or through technical assistance, 
vertical diversification, whether undetaken alone, as 
in the case of perishable commodities and other com­
modities whose problems cannot be adequately 
solved by stocking, or in addition to and in support 
of stocking activities. 
(b) The measures shall be jointly sponsored and 
followed up by producers and consumers within the 
framework of an ICB. 
(c) The operations of the Fund in the Second 
Account may inke the form of loans and grants to an 
ICB or an agency thereof, or to a Member or Memb­
ers designated by such ICB on terms and conditions 
which the Executive Board decides are appropriate, 
having regard to the economic situation of the ICB 
or the Member or Members concerned and the na­
ture and requirements of the proposed operation. 
Such loans may be covered by governmental or other 
suitable guarantees from the ICB or the Member or 
Members designated by such ICB. 
(d) The ICB sponsoring a project to be financed by 
the Fund through its Second Account shall submit to 
the Fund a detailed written proposal specifying the 
purpose, duration, location and cost of the project 
and the agency responsible for its execution. 
(e) Before any loan or grant is made, the Manag­
ing Director shall present to the Executive Board a 
detailed appraisd of the proposal along with his re­
commendations and the advice of the Consultative 
Committee, as appropriate, in accordance with art­
icle 25, paragraph 2. Decisions with regard to the 
selection and approval of proposals shall be made by the Executive Board by a Qualified Majority in ac­
cordance with this Agreement and any rules and re­
gulations for the operations of the Fund adopted 
pursuant thereto. 
(/) For the appraisal of project proposals pre­
sented to it for financing, the Fund shall, as a general 
rule, use the services of international or regional ins­
titutions and may, where appropriate, use the ser­
vices of other competent agencies and consultants 
specialized in the field. The Fund may also entrust to 
such institutions the administration of loans or grants 
and the supervision of the implementation of pro­
jects financed by it. Such institutions, agencies and 
consultants shall be selected according to rules and 
regulations adopted by the Governing Council. 
(g) In making or participating in any loan, the 
Fund shall pay due regard to the prospects that the 
borrower and any guarantor shall be in a position to 
meet their obligations to the Fund in respect of such 
transactions. 
(A) The Fund shall enter into an agreement with 
the ICB, an agency thereof, the Member or Members 
concerned, specifying the amounts, terms and condi­
tions of the loan or grant and providing, inter alia. 
for any governmental or other appropriate guaran­
tees in accordance with this Agreement and with any 
rules and regulations established by the Fund. 
(0 Funds to be provided under any financing 
operation shall be made available to the recipient 
only to meet expenses in connexion with the project 
as they are actually incurred. 
(/') The Fund shall not refinance projects initially 
financed from other sources. 
(k) Loans shall be repayable in the currency or 
currencies loaned. 
(/) The Fund shall as far as possible avoid duplica­
tion of its Second Account activities with existing in­
ternational and regional financial institutions, but 
may participate in co-financing with such institu­
tions. 
(m)In determining its priorities for the use of the 
resources of the Second Account, the Fund shall give 
due emphasis to commodities of interest to the least 
developed countries. 
(n) In considering projects for the Second Account 
due emphasis shall be given to the commodities of 
interest to developing countries, particularly those of 
small producers-exporters. 
(o) The Fund shall pay due regard to desirability 
of not using a disproportionate amount of its Second 
Account resources for the benefit of any particular 
commoditv. 
D. Borrowing for the Second Account 
4. The Fund's borrowing for the Second Ac­
count, under article 16. paragraph 5 (a), shall be in 
accordance with rules and regulations to be adopted 
by the Governing Council and shall be subject to the 
following: 
(a) Such borrowing shall be on concessional terms 
to be specified in rules and regulations to be adopted 
11 
V 
by the Fund and its proceeds shall not be re-lent on 
terms which are more concessional than those on 
which they are acquired. 
(b) For the purposes of accounting, the proceeds of 
the borrowing shall be placed in a loan account 
whose resources shall be held, used, committed, in­
vested or otherwise disposed of, entirely separately 
from other resources of the Fund, including the other 
resources of the Second Account 
(c) The other resources of the Fund, including 
other resources of the Second Account, shall not be 
charged" with losses, or used to discharge liabilities, 
arising out of operations or other activities of such a 
loan account 
(d) The borrowings for the Second Account shall 
be approved by the Executive Board. * 
Chapter VII. Organization and management 
Article 19 
STRUCTURE OF THE FUND 
The Fund shall have a Governing Council, an Exe­
cutive Board, a Managing Director and such staff as 
may be necessary to carry out its functions. 
Article 20 
GOVERNING COUNCIL 
1. All the powers of the Fund shall be vested in 
the Governing Council. 
2. Each Member shall appoint one Governor and 
one alternate to serve on the Governing Council at 
the pleasure of the appointing Member. The alter­
nate may participate in meetings but may vote only 
in the absence of his principal. 
3. The Governing Council may delegate to the 
Executive Board authority to exercise any powers of 
the Governing Council, except the power 
(a) To determine the fundamental policy of the 
Fund; 
(b) To agree on terms and conditions for accession 
to this Agreement in accordance with article 56; 
(c) To suspend a Member; 
(a) To increase or decrease the Shares of Directly 
Contributed Capital: 
(e) To adopt amendments to this Agreement; 
if) To terminate the operations of the Fund and to 
distribute the Fund's assets in accordance with 
chapter IX; 
(g) To appoint the Managing Director; 
(A) To decide appeals by Members on decisions 
made by the Executive Board concerning the inter­
pretation or application of this Agreement; 
(0 To approve the audited annual statement of ac­
counts of the Fund; (J) To take decisions pursuant to article 16. para­
graph 4, relating to net earnings after provision for 
the Special Reserve; 
(k) To approve proposed Association Agreements; 
(/) To approve proposed agreements with other in­
ternational organizations in accordance with article 
29, paragraphs 1 and 2; 
(m)To decide on replenishments of the Second Ac­
count in accordance with article 13. 
4. The Governing Council shall hold an annual 
meeting and such special meetings as it may decide, 
or as are called for by 15 Governors holding at least 
one fourth of the total voting power, or as requested 
by the Executive Board. 
5. A quorum for any meeting of the Governing 
Council shall be constituted by a majority of the 
Governors holding not less than two thirds of the 
total voting power. 
6. The Governing Council shall by a Highly-
Qualified Majority establish such rules and regula­
tions consistent with this Agreement as it deems 
necessary for the conduct of the business of the 
Fund. 
7. Governors and alternates shall serve as such 
without compensation from the Fund, unless the 
Governing Council decides by a Qualified Majority 
to pay them reasonable per diem and travel expenses 
incurred in attending meetings. 
8. At each annual meeting, the Governing Coun­
cil shall elect a Chairman from among the Gover­
nors. The Chairman shall hold office until the elec­
tion of his successor. He may be re-elected for one 
successive term. 
Article 21 
VOTING IN THE GOVERNING COUNCIL 
1. Votes in the Governing Council shall be dis­
tributed among Member States in accordance with 
schedule D. 
2. Decisions in the Governing Council shall. 
whenever possible, be taken without vote. 
3. Except as otherwise provided in this Agree­
ment, all matters before the Governing Council shall 
be decided by a Simple Majority. 
4. The Governing Council may by rules and re­
gulations establish a procedure whereby the Execu­
tive Board may obtain a vote of the Council on a 
specific question without calling a meeting of the 
council. 
Article 22 
EXECUTIVE BOARD 
1. The Executive Board shall be responsible for 
the conduct of the operations of the Fund and shall 
report to the Governing Council thereon. For this 
purpose the Executive Board shall exercise the pow­
ers accorded to it elsewhere in this Agreement or de­
legated to it by the Governing Council. In the exer­
cise of any delegated powers, the Executive Board 
12 Zo 
shall take decisions by the same levels of majority 
that would apply were such powers retained by the 
Governing Council. 
2. The Governing Council shall elect 28 Execu­
tive Directors and one alternate to each Executive 
Director in the manner specified in schedule E. 
3. Each Executive Director and alternate shall be 
elected for a term of two years and may be re­
elected. They shall continue in office until their suc­
cessors are elected. An alternate may participate in 
meetings but may vote only in the absence of his 
principal. 
4. The Executive Board shall function at the 
headquarters of the Fund and shall meet as often as 
the business of the Fund may require. 
5. (a) The Executive Directors and their alter­
nates shall serve without remuneration from the 
Fund. The Fund may, however, pay them reasonable 
per diem and travel expenses incurred in attending 
meetings. 
(b) Notwithstanding subparagraph (a) above, the 
Executive Directors and their alternates shall be re­
munerated by the Fund if the Governing Council 
decides by a Qualified Majority that they shall serve 
on a full-time basis. 
6. A quorum for any meeting of the Executive 
Board shall be constituted by a majority of Executive 
Directors holding not less than two thirds of the total 
voting power. 
7. The Executive Board may invite the executive 
heads of Associated ICOs and of ICBs to participate, 
without vote, in the deliberations of the Executive 
Board. 
8. The Executive Board shall invite the Secre­
tary-General of UNCTAD to attend the meetings of 
the Executive Board as an observer. 
9. The Executive Board may invite the represen­
tatives of other interested international bodies to at­
tend its meetings as observers. 
Article 23 
VOTING IN THE EXECUTIVE BOARD 
1 Each Executive Director shall be entitled to 
cast the number of votes attributable to the Members 
he represents. These votes need not be cast as a unit 
2. Decisions in the Executive Board shall, 
whenever possible, be taken without vote. 
3. Except as otherwise provided in this Agree­
ment, all matters before the Executive Board shall be 
decided by a Simple Majority. 
Article 24 
MANAGING DIRECTOR AND STAFF 
1. The Governing Council shall by a Qualified 
Majority appoint the Managing Director. If the ap­
pointee is, at the time of his appointment, a Gover­
nor or an Executive Director, or an alternate, he shall 
resign from such position prior to taking up his 
duties as Managing Director. 2. The Managing Director shall conduct, under 
the direction of the Governing Council and the Exe­
cutive Board, the ordinary business of the Fund. 
3. The Managing Director shall be the chief exe­
cutive officer of the Fund and the Chairman of the 
Executive Board, and shall participate in its meetings 
without the right to vote. 
4. The term of office of the Managing Director 
shall be four years and he may be reappointed for 
one successive term. However, he shall cease to hold 
office at any time the Governing Council so decides 
by a Qualified Majority. 
5. The Managing Director shall be responsible 
for the organization, appointment and dismissal of 
the staff pursuant to staff rules and regulations to be 
adopted by the Fund. In appointing the staff the 
Managing Director shall, subject to the paramount 
importance of securing the highest standards of 
efficiency and of technical competence, pay due re­
gard to recruiting personnel on as wide as geographi­
cal basis as possible. 
6. The Managing Director and staff, in the dis­
charge of their functions, shall owe their duty enti­
rely to the Fund and to no other authority. Each 
Member shall respect the international character of 
this duty and shall refrain from all attempts to in­
fluence the Managing Director or any of the staff in 
the discharge of their functions. 
Article 25 
CONSULTATIVE COMMITTEE 
1. (a) The Governing Council shall, taking into 
account the need to make the Second Account opera­
tional as soon as possible, establish as early as poss­
ible a Consultative Committee, in accordance with 
rules and regulations to be adopted by the Govern­
ing Council, to facilitate the operations of the Second 
Account 
(b) In the composition of the Consultative Com­
mittee, due regard shall be paid to the need for a 
broad and equitable geographical distribution, in­
dividual expertise in commodity development issues, 
and the desirability of a broad representation of in­
terests, including of voluntary contributors. 
2. The functions of the Consultative Committee 
shall be: 
(a) To advise the Executive Board on technical and 
economic aspects of the programmes of measures 
proposed by ICBs to the Fund for financing and co-
financing through the Second Account and on the 
priorities to be attached to such proposals; 
(b)To advise, at the request of the Executive 
Board, on specific aspects connected with the apprai­
sal of particular projects being considered for finan­
cing through the Second Account; 
(c) To advise the Executive Board on guidelines 
and criteria for determining the relative priorities 
among measures within the scope of the Second Ac­
count, for appraisal procedures, for making grants 
and loan assistance, and for co-financing with other 
international financial institutions and other entities: 
13 
7 
(d) To comment on reports from the Managing 
Director on the supervision, implementation and 
evaluation of projects being financed through the Se­
cond Account. 3. The Fund may establish working arrange­
ments with the bodies refereed to in paragraph 2 of 
this article, as may be decided by the Executive 
Board. 
Article 26 
BUDGETARY AND AUDIT PROVISIONS 
1. The administrative expenses of the Fund shall 
be covered by revenues of the First Account. 
1 The Managing Director shall prepare an an­
nual administrative budget, which shall be consid­
ered by the Executive Board and be transmitted, to­
gether with its recommendations, to the Governing 
Council for approval. 
3 The Managing Director shall arrange for an 
annual independent and external audit of the ac­
counts of the Fund. The audited statement of 
acoounts, after consideration by the Executive 
Board, shall be transmitted, together with its recom­
mendations, to the Governing Council for approval. 
Article 27 
LOCATION OF HEADQUARTERS 
The headquarters of the Fund shall be located in 
the place decided upon by the Governing Council by 
a Qualified Majority, if possible at its first annual 
meeting. The Fund may, by a decision of the 
Governing Council, establish other offices, as neces­
sary, in the territory of any Member. 
Article 28 
PUBLICATION OF REPORTS 
The Fund shall issue and transmit to Members an 
annual report containing an audited statement of ac­
counts. After adoption by the Governing Council, 
such report and statement shall also be transmitted 
for information to the General Assembly of the 
United Nations, to the Trade and Development 
Board of UNCTAD, to Associated ICOs and to other 
interested international organizations. 
Article 29 
RELATIONS WITH THE UNITED NATIONS AND OTHER ORGANIZATIONS 
1. The Fund may enter into negotiations with the 
United Nations with a view to concluding an agree­
ment to bring the Fund into relationship with the 
United Nations as one of the specialized agencies re­
ferred to in Article 57 of the Charter of the United 
Nations. Any agreement concluded in accordance 
with Article 63 of the Charter shall require the ap­
proval of the Governing Council, upon the recom­
mendation of the Executive Board. 
2. The Fund may co-operate closely with UNC­
TAD and the organizations of the United Nations 
system, other intergovernmental organizations, inter­
national financial institutions, non-governmental or­
ganizations and governmental agencies concerned 
with related fields of activities and, if deemed neces­
sary, enter into agreements with such bodies. Chapter VIII. Withdrawal and suspension 
of membership and withdrawal of Associated ICOs 
Article 30 
WITHDRAWAL OF MEMBERS 
A Member may at any time, except as provided for 
in article 35, paragraph 2 (b). and subject to the pro­
visions of article 32, withdraw from the Fund by 
transmitting a notice in writing to the Fund. Such 
withdrawal shall become effective on the date 
specified on the notice, which shall be not less than 
twelve months after receipt of the notice by the 
Fund. 
Article 31 
SUSPENSION OF MEMBERSHIP 
1. If a Member fails to fulfil any of its financial 
obligations to the Fund, the Governing Council may. 
except as provided for in article 35, paragraph 2 (b), 
by a Qualified Majority, suspend its membership. 
The Member so suspended shall automatically cease 
to be a Member one year from the date of its suspen­
sion, unless the Governing Council decides to extend 
the suspension for a further period of one year. 
2. When the Governing Council is satisfied that 
the suspended Member has fulfilled its financial obli­
gations to the Fund, the Council shall restore the 
Member to good standing. 
3. While under suspension, a Member shall not 
be entitled to exercise any rights under this Agree­
ment, except the right of withdrawal and to arbitra­
tion during the termination of the Fund's operations, 
but shall remain subject to compliance with all its 
obligations under this Agreement. 
Article 32 
SETTLEMENT OF ACCOUNTS 
1. When a Member ceases to be a Member, it 
shall remain liable thereafter to meet all calls made 
by the Fund before, and payments outstanding as of. 
the date on which it ceased to be a Member in re­
spect of its obligations to the Fund. It shall also re­
main liable to meet its obligations in respect of its 
Guarantee Capital, until arrangements satisfactory to 
the Fund have been made which comply with article 
14, paragraphs 4 to 7. Each Association Agreement 
shall provide that, if a participant in the respective 
Associated ICO ceases to be a Member, the Asso­
ciated ICO shall ensure that such arrangements are 
completed not later than the date on which the 
Member ceases to be a Member. 
2. When a Member ceases to be a Member, the 
Fund shall arrange for the repurchase of its Shares 
consistent with article 16, paragraphs 2 and 3, as a 
part of the settlement of accounts with that Member, 
14 
2 L 
and shall cancel its Guarantee Capital provided that 
the obligations and requirements specified in para­
graph 1 of this article have been met. The repurchase 
price of the Shares shall be value shown by the books 
of the Fund as at the date the Member ceases to be 
a Member, provided that any amount thus due to the 
Member may be applied by the Fund to any liability 
outstanding to the Fund from that Member pursuant 
to paragraph 1 of this article. 
Article 33 
WITHDRAWAL OF ASSOCIATED ICOs 
1. An Associated ICO may. subject to the terms 
and conditions of the Association Agreement, with­
draw from association with the Fund, provided that 
such Associated ICO shall repay all outstanding-
loans received from the Fund before the date on 
which such withdrawal becomes effective. The Asso­
ciated ICO and its participants shall remain liable 
thereafter only to meet calls made by the Fund be­
fore that date in respect of their obligations to the 
Fund. 
2. When an Associated ICO ceases to be asso­
ciated with the Fund, the Fund shall, after the fulfil­
ment of the obligations specified in paragraph 1 of 
this article: 
(a) Arrange for the refund of any cash deposit and 
for the return of any Stock Warrants it holds for the 
account of that Associated ICO; 
(b) Arrange for the refund of any cash deposited in 
lieu of Guarantee Capital, and cancel relevant 
Guarantee Capital and Guarantees. 
Chapter IX. Suspension and termination 
of operations and settlement of obligations 
Article 34 
TEMPORARY SUSPENSION OF OPERATIONS 
In an emergency, the Executive Board may tem­
porarily suspend such of the Fund's operations as it 
considers necessary pending an opportunity for 
further consideration and action by the Governing 
Council. 
Article 35 
TERMINATION OF OPERATIONS 
1. The Governing Council may terminate the 
Fund's operations by a decision taken by a vote of 
two thirds of the total number of Governors holding 
not less than three fourths of the total voting power. 
Upon such termination, the Fund shall forthwith 
cease all activities, except those necessary for the or­
derly realization and conservation of its assets and 
the settlement of its outstanding obligations. 
2. Until final settlement of its obligations and 
final distribution of its assets, the Fund shall remain 
in existence, and all rights and obligations of the Fund and of its Members under this Agreement shall 
continue unimpaired, except that: 
(a) The Fund shall not be obliged to provide for 
withdrawal on demand of Associated ICO deposits 
in accordance with article 17, paragraph 10 (a), or to 
make new loans to Associated ICOs in accordance 
with article 17, paragraph 10 (6); 
(b) No Member may withdraw or be suspended 
after the decision to terminate has been taken. 
Article 36 
SETTLEMENT OF OBLIGATIONS GENERAL PROVISIONS 
1. The Executive Board shall make such arrange­
ments as are necessary to ensure the orderly realiza­
tion of the Fund's assets. Before making any pay­
ments to creditors holding direct claims, the Execu­
tive Board shall, by a Qualified Majority, make such 
reserves or arrangements as are necessary, in its sole 
judgement, to ensure a distribution to holders of con­
tingent claims pro rata with creditors holding direct 
claims. 
2. No distribution of assets shall be made in ac­
cordance with this chapter until: 
(a) Ail liabilities of the Account in question have 
been discharged or provided for; and 
(b) The Governing Council has decided to make a 
distribution by a Qualified Majority. 
3. Following a decision of the Governing Council 
under paragraph 2 (b) of this article, the Executive 
Board shall make successive distributions of any re­
maining assets of the Account in question until all 
such assets have been distributed. Such distribution 
to any Member or any participant in an Associated 
ICO which is not a Member shall be subject to the 
prior settlement of all outstanding claims of the 
Fund against that Member or participant and shall 
be effected at such times and in such currencies or 
other assets as the Governing Council shall deem fair 
and equitable. 
Article 37 
SETTLEMENT OF OBLIGATIONS: FIRST ACCOUNT 
1. Any loans outstanding to Associated ICOs in 
respect of First Account operations at the time of a 
decision to terminate the Fund's operations shall be 
repaid by the Associated ICOs concerned within 12 
months of the decision to terminate. On repayment 
of such loans. Stock Warrants pledged to, or assigned 
in trust for, the Fund in respect of those loans shall 
be returned to the Associated ICOs. 
2. Stock Warrants pledged to. or assigned in trust 
for, the Fund in respect of commodities acquired 
with cash deposits or Associated ICOs shall be re­
turned to such Associated ICOs in a manner consis­
tent with the treatment of cash deposits and sur­
pluses specified in paragraph 3 (b) of this article, to 
the extent that such Associated ICOs have fully dis­
charged their obligations to the Fund. 
3. The following liabilities incurred by the F <no 
in respect of First Account operations shall be dis­
charged pari passu through the use of the asse:s of 
15 
< S 
the First Account, in accordance with article 17, 
paragraphs 12 to 14: 
(a) Liabilities to creditors of the Fund; and 
(b) Liabilities to Associated ICOs in respect of cash 
deposits and surpluses held in the Fund in accor­
dance with article 14, paragraphs 1, 2. 3 and 8, to the 
extent that such Associated ICOs have fully dis­
charged their obligations to the Fund. 
4. Distribution of any remaining assets of the 
First Account shall be made on the following basis 
and in the following order: 
(a) Amounts up to the value of any Capital called 
from and paid by Members in accordance with ar­
ticle 17, paragraphs 12 (d) and 13. shall be dis­
tributed to such Members pro rata to their shares in 
the total value of such Guarantee Capital called and 
paid; 
(b) Amounts up to the value of any Guarantees 
called from and paid by participants in Associated 
ICOs which are not Members in accordance with ar­
ticle 17. paragraphs 12 (d) and 13, shall be dis­
tributed to such participants pro rata to their shares 
in the total value of such Guarantees called and paid. 
5. Distribution of any assets of the First Account 
remaining after the distributions provided for in 
paragraph 4 of this article shall be made to Members 
pro rata to their subscriptions of Shares of Directly 
Contributed Capital allocated to the First Account. 
Article 38 
SETTLEMENT OF OBLIGATIONS: SECOND ACCOUNT 
1. Liabilities incurred by the Fund in respect of 
Second Account operations shall be discharged 
through the use of the resources of the Second Ac­
count, pursuant to article 18, paragraph 4. 
2. Distribution of any remaining assets of the Se­
cond Account shall be made first to Members up to 
the value of their subscriptions of Shares of Directly 
Contributed Capital allocated to that Account pur­
suant to article 10. paragraph 3, and then to contribu­
tors to that Account pro rata to their share in the total 
amount contributed pursuant to article 13. 
Article 39 
SETTLEMENT OF OBLIGATIONS: OTHER ASSETS 
OF THE FUND 
1. Any other asset shall be realized at a time or 
times to be decided by the Governing Council, in the 
light of recommendations made by the Executive 
Board and in accordance with procedures deter­
mined by the Executive Board by a Qualified Major­
ity. 
2. Proceeds realized by the sale of such assets 
shall be used to discharge pro rata the liabilities re­
ferred to in article 37, paragraph 3. and article 38, 
paragraph 1. Any remaining assets shall be dis­
tributed first on the basis and in the order specified 
in article 37, paragraph 4, and then to Members pro 
rata to their subscriptions of Shares of Directly Con­
tributed Capital. Chapter X. Status, privileges and immunities 
Article 40 
PURPOSES 
To enable the Fund to fulfil the functions with 
which it is entrusted, the status, privileges and im­
munities set forth in this chapter shall be accorded to 
the Fund in the territory of each Member. 
Article 41 
LEGAL STATUS OF THE FUND 
The Fund shall possess full juridical personality, 
and. in particular, the capacity to conclude interna­
tional agreements with States and international 
organizations, to enter into contracts, to acquire and 
dispose of immovable and movable property, and to 
institute legal proceedings. 
Article 42 
IMMUNITY FROM JURIDICAL PROCEEDINGS 
1. The Fund shall enjoy immunity from every 
form of legal process, except for actions which may 
be brought against the Fund: 
(a) By lenders of funds borrowed by the Fund with 
respect to such funds; 
(b) By buyers or holders of securities issued by the 
Fund with respect to such securities; and 
(c) By assignees and successors in interest thereof 
with respect to the aforementioned transactions. 
Such actions may be brought only before courts of 
competent jurisdiction in places in which the Fund 
has agreed in writing with the other party to be sub­
ject However, if no provision is made as to the 
forum, or if an agreement as to the jurisdiction of 
such courts is not effective for reasons other than the 
fault of the party bringing legal action against the 
Fund, then such action may be brought before a 
competent court in the place in which the Fund has 
its headquarters or has appointed an agent for the 
purpose of accepting service or notice of process. 
2. No action shall be brought against the Fund 
by Members, Associated ICOs, ICBs. or their partici­
pants, or persons acting for or deriving claims from 
them, except in cases as in paragraph 1 of this article. 
Nevertheless, Associated ICOs, ICBs, or their partici­
pants shall have recourse to such special procedures 
to settle controversies between themselves and the 
Fund as may be prescribed in agreements with the 
Fund, and, m the case of Members, in this Agree­
ment and in any rules and regulations adopted by 
the Fund. 
3. Notwithstanding the provisions of paragraph 1 
of this article, property and assets of the Fund, 
wherever located and by whomsoever held, shall be 
immune from search, any form of taking, foreclo­
sure, seizure, all forms of attachment, injunction, or 
other judicial process impeding disbursement of 
funds or covering or impeding disposition of any 
commodity stocks or Stock Warrants, and any other 
interlocutory measures before the delivery of a final 
16 2,1] 
judgement against the Fund by a court having juris­
diction in accordance with paragraph 1 of this article. 
The Fund may agree with its creditors to limit the 
property or assets of the Fund which may be subject 
to execution in satisfaction of a final judgement (c) Shall be granted the same treatment in respect 
of travelling facilities as is accorded by each Member 
to representatives, officials and employees of com­
parable rank of other international financial institu­
tions of which it is a member. 
Article 43 
IMMUNITY OF ASSETS FROM OTHER ACTIONS 
"The property and assets of the Fund, wherever lo­
cated and by whomsoever held, shall be immune 
from search, requisition, confiscation, expropriation 
and any other from of interference or taking whether 
by executive or legislative action. 
Article 44 
IMMUNITY OF ARCHIVES 
The archives of the Fund, wherever located, shall 
be inviolable. 
Article 45 
FREEDOM OF ASSETS FROM RESTRICTIONS 
To the extent necessary to carry out the operations 
provided for in this Agreement and subject to the 
provisions of this Agreement all property and assets 
of the Fund shall be free from restrictions, regula­
tions, controls, and mora tori a of any nature. 
Article 46 
PRIVILEGE FOR COMMUNICATIONS 
As far as may be compatible with any international 
convention on telecommunications in force and con­
cluded under the auspices of the International Tele­
communication Union to which a Member is a party, 
the official communications of the Fund shall be ac­
corded by each Member the same treatment that is 
accorded to the official communications of other 
Members. 
Article 47 
IMMUNITIES AND PRIVILEGES OF SPECIFIED INDIVIDUALS 
All Governors, Executive Directors, their alter­
nates, the Managing Director, members of the Con­
sultative Committee, experts performing missions for 
the Fund, and the staff, other than persons in domes­
tic service of the Fund: 
(a) Shall be immune from legal process with res­
pect to acts performed by them in their official cap­
acity except when the Fund waives such immunity; 
(b) When they are not nationals of the Member 
concerned, shall be accorded, as well as their families 
forming part of their household, the same im­
munities from immigration restrictions, alien regis­
tration requirements and national service obligations 
and the same facilities as regards exchange restric­
tions as are accorded by such Member to the repre­
sentatives, officials and employees of comparable 
rank of other international financial institutions of 
which it is a member; Article 48 
IMMUNITIES FROM TAXATION 
1. Within the scope of its official activities, the 
Fund, its assets, property, income and its operations 
and transactions authorized by this Agreement shall 
be exempt from all direct taxation and from all cus­
toms duties on goods imported or exported for its 
official use, provided that this shall not prevent any 
Member from imposing its normal taxes and customs 
duties on commodities which originate from the ter­
ritory of such Member and which are forfeited to the 
Fund through any circumstance. The Fund shall not 
claim exemption from taxes which are no more than 
charges for services rendered. 
2. When purchases of goods or services of sub­
stantial value necessary for the official activities of 
the Fund are made by or on behalf of the Fund, and 
when the price of such purchases includes taxes or 
duties, appropriate measures shall, to the extent poss­
ible and subject to the law of the Member concerned. 
be taken by such Member to grant exemption from 
such taxes or duties or provide for their reimburse­
ment Goods imported or purchased under an 
exemption provided for in this article shall not be 
sold or otherwise disposed of in the territory of the 
Member which granted the exemption, except under 
conditions agreed with that Member. 
3. No tax shall be levied by Members on or in 
respect of salaries and emoluments paid or any other 
form of payment made by the Fund to Governors. 
Executive Directors, their alternates, members of the 
Consultative Committee, the Managing Director and 
staff, as well as experts performing missions for the 
Fund, who are not their citizens, nationals or sub­
jects. 
4. No taxation of any kind shall be levied on any 
obligation or security issued or guaranteed by the 
Fund, including any dividend or interest thereon, by 
whomsoever held: 
(a) Which discriminates against such obligation or 
security solely because it is issued or guaranteed by 
the Fund; or 
(b) If the sole jurisdictional basis for such taxation 
is the place or currency in which it is issued, made 
payable or paid, or the location of any office or place 
of business maintained by the Fund. 
Article 49 
WAIVER OF IMMUNITIES, EXEMPTIONS AND PRIVILEGE 
Î. The immunities, exemptions and privileges 
provided in this chapter are granted m '.he lite. w5ts 
of the Fund. The Fund may waive, to such exient 
and upon such conditions as it nay ds.er.*: ie. -
Immunities, exemptions and privileges provide- '•<< 
17 
this chapter in cases where its action would not pre­
judice the interests of the Fund. 
2. The Managing Director shall have the power, 
as may be delegated to him by the Governing Coun­
cil, and the duty to waive the immunity of any of the 
staff, and experts performing missions for the Fund, 
in cases where the immunity would impede the 
course of justice and can be waived without pre­
judice to the interests of the Fund. 
Article 50 
APPLICATION OF THIS CHAPTER 
Each Member shall take such action as is necessary 
for the purpose of making effective in its territory the 
principles and obligations set forth in this chapter. 
Chapter XI. Amendments 
Article 51 
AMENDMENTS 
1. (a) Any proposal to amend this Agreement 
emanating from a Member shall be notified to all 
Members by the Managing Director and referred to 
the Executive Board, which shall submit its recom­
mendations thereon to the Governing Council. 
(b) Any proposal to amend this Agreement 
emanating from the Executive Board shall be 
notified to all Members by the Managing Director 
and referred to the Governing Council. 
2. Amendments shall be adopted by the Govern­
ing Council by a Highly Qualified Majority. Amend­
ments shall enter into force six months after their 
adoption unless otherwise specified by the Govern­
ing Council. 
3. Notwithstanding paragraph 2 of this article, 
any amendment modifying: 
(a) The right of any Member to withdraw from the 
Fund; 
(b) Any voting majority requirement provided for 
in this Agreement; 
(c) The limitation on liability provided in article 6; 
(d) The right to subscribe or not to subscribe 
Scares of Directly Contributed Capital pursuant to 
article 9, paragraph 5; 
{e) The procedure for amending this Agreement; 
shall not come into force until accepted by all 
Members. Acceptance shall be deemed to have been 
given unless any Member notifies its objection to the 
Managing Director in writing within six months after 
the adoption of the amendment. Such period of time 
msy be extended by the Governing Council at the 
time of the adoption of the amendment, at the re­
quest of any Member. 
4. The Managing Director shall immediately no­
tify all Members and the Depositary of any amend­
ments that are adopted and of the date of the entry 
into force of any such amendments. Chapter XII. Interpretation and arbitration 
Article 52 
INTERPRETATION 
1. Any question of interpretation or application 
of the provisions of this Agreement arising between 
any Member and the Fund or between Members 
shall be submitted to the Executive Board for deci­
sion. Such Member or Members shall be entitled to 
participate in the deliberations of the Executive 
Board during the consideration of such question in 
accordance with rules and regulations to be adopted 
by the Governing Council. 
2. In any case where the Executive Board has 
given a decision under paragraph 1 of this article, 
any Member may require, within three months from 
the date of notification of the decision, that the ques­
tion be referred to the Governing Council, which 
shall take a decision at its next meeting by a Highly 
Qualified Majority. The decision of the Governing 
Council shall be final. 
3. Where the Governing Council has been un­
able to reach a decision under paragraph 2 of this 
article, the question shall be submitted to arbitration 
in accordance with the procedures laid down in ar­
ticle 53. paragraph 2, if any Member so requests 
within three months after the final day of consider­
ation of the question by the Governing Council. 
Article 53 
ARBITRATION 
1. Any dispute between the Fund and any 
Member which has withdrawn, or between the Fund 
and any Member during the termination of the 
Fund's operations, shall be submitted to arbitration. 
2. The arbitral tribunal shall consist of three ar­
bitrators. Each party to the dispute shall appoint one 
arbitrator. The two arbitrators so appointed shall ap­
point the third arbitrator, who shall be the Chair­
man. If within 45 days of receipt of the request for 
arbitration either party has not appointed an arbi­
trator, or if within 30 days of the appointment of the 
two arbitrators the third arbitrator has not been ap­
pointed, either party may request the President of the 
International Court of Justice, or such other author­
ity as may have been prescribed by rules and regula­
tions adopted by the Governing Council, to appoint 
an arbitrator. If the President of the International 
Court of Justice has been requested under this para­
graph to appoint an arbitrator and if the President is 
a national of a State party to the dispute or is unable 
to discharge his duties, the authority to appoint the 
arbitrator shall devolve on the Vice-President of the 
Court, or, if he is similarly precluded, on the oldest 
among the members of the Court not so precluded 
who have been longest on the bench. The procedure 
of arbitration shall be fixed by the arbitrators but the 
Chairman shall have full power to settle all questions 
of procedure in any case of disagreement with re­
spect thereto. A majority vote of the arbitrators shall 
be sufficient to reach a decision, which shall be final 
and binding upon the parties. 
18 
ZC 
3. Unless a different procedure for arbitration is 
provided for in an Association Agreement, any dis­
pute between the Fund and the Associated ICO shall 
be subject to arbitration in accordance with the pro­
cedures provided for in paragraph 2 of this article. 
Chapter XIII. Final provisions 
Article 54 
SIGNATURE AND RATIFICATION, ACCEPTANCE 
OR APPROVAL 
1. This Agreement shall be open for signature by 
all States listed in schedule A. and by intergovern­
mental organizations specified in article 4 (b). at 
United Nations Headquarters in New York from 
1 October 1980 until one year after the date of its 
entry into force. 
2. Any signatory State or signatory intergovern­
mental organization may become a party to this 
Agreement by depositing an instrument of ratifica­
tion, acceptance or approval until 18 months after 
the date of its entry into force. 
Article 55 
DEPOSITARY 
The Secretary-General of the United Nations shall 
be the Depositary of this Agreement. 
Article 56 
ACCESSION 
After the entry into force of this Agreement any 
Slate or intergovernmental organization specified in 
article 4 may accede to this Agreement upon such 
terms and conditions as are agreed between the 
Governing Council and that State or intergovern­
mental organization. Accession shall be effected by 
the deposit of an instrument of accession with the 
Depositary. 
Article 57 
ENTRY INTO FORCE 
1. This Agreement shall enter into force upon re­
ceipt by the Depositary of instruments of ratification. acceptance or approval from at least 90 States. 
provided that their total subscriptions of Shares of 
Directly Contributed Capital comprise not less than 
two thirds of the total subscriptions of Shares of 
Directly Contributed Capital allocated to all the 
States specified in schedule A and that not less than 
50 per cent of the target for pledges of voluntary 
contributions to the Second Account specified in art­
icle 13. paragraph Z has been met. and further 
provided that the foregoing requirements have been 
fulfilled by 31 March 1982 or by such later date as 
the States that have deposited such instruments by 
the end of that period may decide by a two-third's 
majority vote of those States. If the foregoing 
requirements have not been fulfilled by that later 
date, the States that have deposited such instruments 
by that later date may decide by a two-thirds major­
ity vote of those States on a subsequent date. The 
States concerned shall notify the Depositary of any 
decisions taken under this paragraph. 
2. For any State or intergovernmental organiz­
ation that deposits an instrument of ratification, ac­
ceptance or approval after the entry into force of this 
Agreement, and for any State or intergovernmental 
organization that deposits an instrument of acces­
sion, this Agreement shall enter into force on the 
date of such deposit. 
Article 58 
RESERVATIONS 
Reservations may not be made with respect to any 
of the provisions of this Agreement except with re­
spect to article 53. 
IN WITNESS WHEREOF the undersigned, being duly 
authorized thereto, have affixed their signatures 
under this Agreement on the dates indicated. 
DONE at Geneva on the twenty-seventh day of 
June, one thousand nine hundred and eighty, in one 
original in the Arabic. Chinese. English. French. 
Russian and Spanish languages, all texts being equ­
ally authentic. 
(Certified as an authentic text. ) 
19 9 
SCHEDULES 
SCHEDULE A 
Subscriptions of Starts of Directly Contributed Capital 
Stmt PauUn Sharrs 
Number 
105 
103 
118 
117 
153 
425 
246 
101 
101 
129 
102 
349 
101 
100 
113 
101 
338 
152 
104 
100 
100 
732 
100 
102 
103 
173 
1 111 
151 
100 
103 
118 
184 
100 
292 
101 
104 
101 
242 
100 
100 
121 
117 
147 
118 
101 
108 
105 
196 
1385 
109 
102 
351 
1819 
129 
100 
100 
120 
105 Value 
(Vmu of 
Account) 
794 480 
779 347 
892 844 
885 277 
1 157 670 
3 215 750 
1861352 
* 764 214 
764 214 
976 075 
771780 
2640 699 
764 214 
756 647 
855 011 
764 214 
2 557 467 
1 150 104 
786 913 
756 647 
756 647 
5 538 657 
756 647 
771780 
779 347 
1309 000 
8 406 350 
1 142 537 
756 647 
779 347 
892 844 
1392 231 
756 647 
2209410 
764 214 
786 913 
764 214 
1 831 086 
756 647 
756647 
915 543 
885 277 
1112 271 
892 844 
764 214 
817 179 
794 480 
1 483 028 
10479 563 
824 745 
77! 780 
2 655 831 
13 763 412 
976 075 
756 647 
756 647 
907 977 
794 480 Payable 
Number 
2 
1 
9 
8 
26 
157 
70 
1 
1 
14 
1 
121 
1 
0 
6 
1 
115 
25 
2 
0 
0 
306 
0 
1 
1 
35 
489 
25 
0 
1 
8 
41 
0 
93 
1 
2 
1 
68 
0 
0 
10 
8 
22 
9 
1 
4 
2 
46 
621 
4 
1 
121 
831 
14 
0 
0 
10 
2 Shorts 
Value 
[Units of 
Account) 
15 133 
7566 
68 098 
60532 
196 728 
1 187 936 
529 653 
7 566 
7 566 
105 931 
7566 
915 543 
7566 
0 
45 399 
7 566 
870 144 
189 162 
15 133 
0 
0 
2 315 340 
0 
7 566 
7566 
264 827 
3 700005 
189 162 
0 
7566 
60 532 
310225 
0 
703 682 
7566 
15 133 
7566 
514 520 
0 
0 
75 665 
60 532 
166462 
68 098 
7 566 
30 266 
15 133 
348 058 
4 698 779 
30266 
7 566 
915 543 
6 287 738 
105 931 
0 
0 
75 665 
15 133 Number 
107 
104 
127 
125 
179 
582 
316 
102 
102 
143 
103 
470 
102 
100 
119 
102 
453 
177 
106 
100 
100 
1038 
100 
103 
104 
208 
1600 
176 
100 
104 
126 
225 
100 
385 
102 
106 
102 
310 
100 
100 
131 
125 
169 
127 
102 
112 
107 
242 
2006 
113 
103 
472 
2 650 
143 
100 
100 
130 
107 Total 
Value 
(Units of 
Account) 
809 612 
786 913 
960 942 
945 809 
1 354 398 
4 403 686 
2 391005 
771 780 
771780 
1082 005 
779 347 
3 556 242 
771 780 
756 647 
900410 
771 780 
3 427 612 
1 339 265 
•802 046 
756 647 
756 647 
7 853 997 
756 647 
779 347 
786 913 
1 573 826 
12 106 354 
1331699 
756 647 
786 913 
953 375 
1 702 456 
756 647 
2913 092 
771780 
802 046 
771780 
2 345 606 
756M7 
756 647 
991208 
945 809 
1 278 734 
960 942 
734 780 
847 445 
809612 
1831086 
15 178 342 
855 011 
779 347 
3 571375 
20051 149 
1082 005 
756 647 
756 647 
983 641 
809612 Afghanistan 
Albania 
Algeria 
Angola 
Argentina 
Australia 
Austria 
Bahamas 
Bahrain 
Bangladesh 
Barbados 
Belgium 
Benin 
Bhutan 
Bolivia 
Botswana 
Brazil 
Bulgaria 
Burma 
Burundi 
Byelorussian Soviet 
Socialist Republic .... 
Canada 
Cape Verde 
Central African Republic . . 
Chad 
Chile 
China 
Colombia 
Comoros 
Congo 
Costa Rica 
Cuba 
Cyprus 
Czechoslovakia 
Democratic Kampuchea. . . 
Democratic People's Republic 
of Korea 
Democratic Yemen .... 
Denmark 
Djibouti 
Dominica 
Dominican Republic .... 
Ecuador 
Egyp« 
El Salvador 
Equatorial Guinea. . . . 
Ethiopia 
Fiji 
Finland 
France 
Gabon 
Gambia 
German Democratic 
Republic 
Germany. 
Federal Republic of . . . 
Ghana 
Greece 
Grenada 
Guatemala 
Guinea 
20 
ZÏ 
SCHEDULE A (continued) 
Souscriptions of Starts of Directly CootriootW Capital 
raisin Snares raymjble Shares Total 
Suit Number 
100 
108 
103 
100 
110 
205 
100 
197 
181 
126 
111 
100 
118 
845 
147 
113 
2 303 
104 
116 
103 
101 
105 
too 118 
105 
100 
100 
106 
103 
248 
100 
103 
101 
108 
109 
144 
100 
103 
137 
106 
100 
101 
430 
100 
114 
101 
134 
202 
100 
122 
105 
116 
105 
136 
183 
362 
100 
100 
151 
142 
103 
100 fame 
{Ummof 
Aetmmi) 
756 647 
817 179 
779 347 
756647 
832 312 
1551 127 
756 647 
1 490 595 
1369 531 
953 375 
839 878 
756 647 
892 844 
6 393 668 
1 112 271 
855 011 
17 425 584 
786 913 
877 711 
779 347 
764 214 
794 480 
756 647 
892 844 
794 480 
756 647 
756 647 
802 046 
779 347 
1876 485 
756 647 
779 347 
764 214 
817 179 
824 745 
1 089 572 
756 647 
779 347 
1 036 607 
802 046 
756 647 
764 214 
3 253 583 
756 647 
862 578 
764 2)4 
1013907 
1 528 427 
756 647 
923 110 
794 480 
877 711 
794 480 
1029040 
1384 664 
2 739063 
756 647 
756 647 
1 142 537 
1 074 439 
779 347 
756647 Number 
0 
4 
2 
0 
5 
51 
0 
47 
39 
12 
6 
0 
8 
360 
22 
6 
1064 
2 
7 
1 
0 
2 
0 
8 
3 
0 
0 
3 
1 
72 
0 
1 
1 
4 
5 
21 
0 
1 
18 
3 
0 
0 
159 
0 
6 
1 
16 
49 
0 
II 
3 
8 
2 
17 
40 
126 
0 
0 
25 
20 
1 
0 Vame 
{Ummof 
Accmmt) 
0 
30266 
15 133 
0 
37 832 
385 890 
0 
355 624 
295 092 
90798 
45 399 
0 
60532 
2 723 930 
166 462 
45 399 
8 050 726 
15 133 
52 965 
7 566 
0 
15 133 
0 
60532 
22 699 
0 
0 
22 699 
7 566 
544 786 
0 
7566 
7566 
30266 
37 832 
158 896 
0 
7 566 
136 196 
22 699 
0 
0 
1 203 069 
0 
45 399 
7 566 
121064 
370 757 
0 
83 231 
22 699 
60532 
15 133 
128 630 
302 659 
953 375 
0 
0 
189 162 
151 329 
7566 
0 Number 
100 
112 
105 
100 
115 
256 
100 
244 
220 
138 
117 
100 
126 
1205 
169 
119 
3 367 
106 
123 
104 
101 
107 
100 
126 
108 
100 
100 
109 
104 
320 
100 
104 
102 
112 
114 
165 
100 
104 
155 
109 
100 
101 
589 
100 
120 
102 
150 
251 
100 
133 
108 
124 
107 
153 
223 
488 
100 
100 
176 
162 
104 
100 Value 
(Units of 
Account) 
756 647 
847 445 
794 480 
756 647 
870 144 
1937 017 
756 647 
1846219 
1664 624 
1044 173 
885 277 
756 647 
953 375 
9 117 598 
1 278 734 
900410 
25 476 309 
802 046 
930676 
786 913 
764 214 
809 612 
756 647 
953 375 
817 179 
756647 
756 647 
824 745 
786 913 
2421271 
756 647 
786 913 
771780 
847 445 
862 578 
1248468 
756 647 
786 9)3 
1 172 803 
824 745 
756 647 
764 214 
4 456652 
756 647 
907 977 
77) 780 
1 134 971 
1899 184 
756 647 
1006 34) 
817 179 
938 242 
809612 
1 157 670 
1 687 323 
3 692 438 
756 647 
756 647 
1331699 
1 225 768 
786 913 
756 647 Guinea-Bissau . . . . 
Guyana 
Haiti 
Holy See 
Honduras 
Hungary 
Iceland 
India 
Indonesia 
Iran 
Iraq 
Ireland 
Israel 
Italy . 
Ivory Coast 
Jamaica 
Japan 
Jordan 
Kenya 
Kuwait 
Lao People's 
Democratic Republic . 
Lebanon 
Lesotho 
Liberia 
Libyan Arab Jamahiriya 
Liechtenstein .... 
Luxembourg 
Madagascar 
Malawi 
Malaysia 
Maldives 
Mali 
Malta 
Mauritania 
Mauritius 
Mexico 
Monaco 
Mongolia 
Morocco 
Mozambique .... 
Nauru 
Nepal 
Netherlands 
New Zealand .... 
Nicaragua 
Niger 
Nigeria 
Norway 
Oman 
Pakistan 
Panama 
Papua New Guinea . . 
Paraguay 
Peru 
Philippines 
Poland 
Portugal 
Qatar 
Republic of Korea . . 
Romania 
Rwanda 
Saint Lucia 
21 r 
SCHEDULE A (concluded) 
Subscription of Share» of Directly attributed Capital 
State PauUa Shares 
Number 
100 
100 
100 
101 
105 
113 
100 
103 
134 
101 
101 
309 
447 
124 
124 
104 
104 
363 
326 
113 
137 
105 
100 
103 
113 
100 
118 
100 
1865 
101 
1051 
116 
113 
5 012 
101 
107 
120 
108 
101 
151 
147 
157 
100 Value 
(Units of 
Account) 
756 647 
756 647 
756 647 
764 214 
794 480 
855 011 
756 647 
779 347 
1013 907 
764 214 
764 214 
2 338 040 
3 382 213 
938 242 
938 242 
786 913 
786913 
2 746 629 
2 466 670 
855 011 
1 036 607 
794 480 
756 647 
779 347 
855 011 
756 647 
892 844 
756 647 
14 111469 
764 214 
7 952 361 
877 711 
855 Oil 
37 923 155 
764 214 
809612 
907 977 
817 179 
764 214 
1 142 537 
1 112 271 
1 187 936 
756 647 Payable Shares 
Number 
0 
0 
0 
0 
2 
7 
0 
1 
17 
0 
1 
101 
167 
12 
12 
2 
2 
127 
109 
7 
18 
3 
0 
2 
6 
0 
9 
0 
853 
1 
459 
8 
6 
2 373 
1 
4 
10 
4 
1 
24 
22 
27 
0 Value 
(Umuof 
Account) 
0 
0 
0 
0 
15 133 
52 965 
0 
7 566 
128 630 
0 
7 566 
764 214 
1263 601 
90 798 
90 798 
15 133 
15 133 
960 942 
824 745 
52 965 
136 196 
22 699 
0 
15 133 
45 399 
0 
68 098 
0 
6 454 200 
7 566 
3 473 010 
60 532 
45 399 
17 955 237 
7 566 
30 266 
75 665 
30 266 
7 566 
181595 
166 462 
204 295 
0 Number 
100 
100 
100 
101 
107 
120 
100 
104 
151 
101 
102 
410 
614 
136 
136 
106 
106 
490 
435 
120 
155 
108 
100 
105 
119 
100 
127 
100 
2718 
102 
1510 
124 
119 
7 385 
102 
111 
130 
112 
102 
175 
169 
184 
100 Total 
Value 
(Units of 
Account) 
756 647 
756 647 
756 647 
764 214 
809 612 
907 977 
756 647 
786 913 
1 142 537 
764 214 
771 780 
3 102 253 
4645813 
1029 040 
1029 040 
802 046 
802 046 
3 707 571 
3 291415 
907 977 
1 172 803 
817 17§_ 
756 647 
794 480 
900410 
756 647 
960 942 
756 647 
20 565 669 
771780 
11425 372 
938 242 
900410 
55 878 392 
771780 
839 878 
983 641 
847 445 
771780 
1324 133 
1 278 734 
1392 231 
756 647 Saint Vincent 
and the Grenadines 
Samoa 
San Marino .... 
SaoJEooic and Principe. 
Saudi Arabia . . . 
Senegal 
Seychelles 
Sierra Leone.... 
Singapore 
Solomon Islands . . 
Somalia 
South Africa.... 
Spain 
Sri Lanka 
Sudan 
Suriname 
Swaziland 
Sweden 
Switzerland .... 
Syrian Arab Republic 
Thailand 
Togo 
tonga 
Trinidad and Tobago. 
Tunisia 
Turkey 
Uganda 
Ukrainian Soviet 
Socialist Republic . 
Union of Soviet 
Socialist Republics . 
United Arab Emirates 
United Kingdom 
of Great Britain 
and Northern Ireland 
United Republic 
of Cameroon . . . 
United Republic 
of Tanzania . . . 
United Sûtes 
of America . . . 
Upper Vol ta.... 
Uruguay 
Venezuela .... 
Viet Nam 
Yemen 
Yugoslavia .... 
Zaire '. . 
Zambia 
Zimbabwe .... 
22 
_> O 
SCHEDULEB 
Special anaageaeats for the least developed contrite panuaat to article II, paragraph 6 
1. Members in the category of least developed countries as defined by the United Nations 
shall pay the Paid-in Shares referred to in article 10, paragraph I (b), in the following manner: 
(a) A payment of 30 per cent shall be made in three equal instalments over a period of three 
years; 
(o) A subsequent payment of 30 per cent shall be made in instalments as and when decided 
by the Executive Board; 
(r) After payment of (a) and (b) above, the remaining 40 per cent shall be evidenced by 
Members by the deposit of irrevocable, non-negotiable, non-interest-bearing promissory notes, 
and shall be paid as and when decided by the Executive Board. 
2 Notwithstanding the provisions of article 31. a least developed country shall not be sus­
pended from its membership for its failure to fulfil the financial obligations referred to in para­
graph I of this schedule without being given the full opportunity to represent its case, within a 
reasonable period of time, and satisfy the Governing Council of its inability to fulfil such obliga­
tions. 
SCHEDULE C 
QigMUty criteria for ICBs 
1. An ICB shall be established on an intergovernmental basis, with membership open to all 
States Members of the United Nations or of any of its specialized agencies or of the International 
Atomic Energy Agency. 
2 It shall be concerned on a continuing basis with the trade, production and consumption 
aspects of the commodity in question. 
3. lu membership shall comprise producers and consumers which shall represent an adequ­
ate share of exports and of imports of the commodity concerned. 
4. It shall bave an effective decision-making process that reflects the interests of its partici­
pants. 
5. It shall be in a position to adopt a suitable method for ensuring the proper discharge of 
any technical or other responsibilities arising from its association with the activities of the Second 
Account. 
SCHEDULE D 
ABocatfoa of votes 
1. Each Member State referred to in article 5 (a) shall hold: 
(a) 150 basic votes; 
(b) The number of votes allocated to it in respect of Shares of 
Directly Contributed Capita) which it has subscribed, as set out in 
the annex to this schedule; 
(c) One vote for each 37.832 Units of Account of Guarantee 
Capital provided by it; 
(d) Any votes allocated to it in accordance with paragraph 3 of 
this schedule. 
1 Each Member State referred to in article 5 (b) shall bold: 
(a) 150 basic votes; 
(b) A number of votes in respect of Shares of Directly Con­
tributed Capital which it bas subscribed, to be determined by the 
Governing Council by a Qualified Majority on a basis consistent 
with the allocation of votes provided for ir the annex to this sched­
ule; 
(r) One vote for each 37,832 Units of Account of Guarantee 
Capital provided by it; 
(d) Any votes allocated to it in accordance with paragraph 3 of 
this schedule. 3. In the event of unsubscribed or additional Shares of Directly 
Contributed Capital being made available for subscription in ac­
cordance with article 9. paragraph 4 (b) and (r). and article 12, 
paragraph 3. two additional votes shall be allocated to each 
Member State for each additional Share of Directly Contributed 
Capital which it subscribes. 
4. The Governing Council shall keep the voting structure 
under constant review and. if the actual voting structure is signifi­
cantly different from that provided for in the annex to this sched­
ule, shall make any necessary adjustments in accordance with the 
fundamental principles governing the distribution of votes re­
flected in this schedule. In making such adjustments, the Govern­
ing Council shall take into consideration: 
(a) The membership; 
(b) The number of Shares of Directly Contributed Capital; 
(c) The amount of Guarantee Capital. 
5. Adjustments in the distribution of votes pursuant to para­
graph 4 of this schedule shall be made in accordance with rules 
and regulations to be adopted for this purpose by the Governing 
Council at its first annual meeting by a Highly Qualified Majorir> 
23 •i 7 
Annex to schedule D 
ALLOCATION OF VOTES 
Stair 
Afghanistan . . . 
Albania 
Algeria 
Angola : . . . . 
Argentina . . . . 
Australia. . . . . 
Austria 
Bahamas. . . . . 
Bahrain 
Bangladesh .... 
Barbados . . . . 
Belgium 
Benin 
Bhutan 
Bolivia 
Botswana . . . . 
Brazil 
Bulgana 
Burma 
Burundi 
Byelorussian Soviet 
Socialist Republic. 
Canada 
Cape Verde . . . 
Central African 
Republic .... 
Chad 
Chile 
China 
Colombia .... 
Comoros 
Congo 
Costa Rica .... 
Cuba 
Cyprus 
Czechoslovakia . . 
Democratic 
Kampuchea . . 
Democratic People's 
Republic of Korea 
Democratic Yemen . 
Denmark .... 
Djibouti 
Dominica .... 
Dominican Republic 
Ecuador 
Egypt 
El Salvador. . . . 
Equatorial Guinea . 
Ethiopia 
F'j» 
Finland 
France 
Gabon 
Gambia 
German Democratic 
Republic .... 
Germany. Federal 
Republic of. 
Ghana 
Greece 
Grenada 
Guatemala .... 
Guinea 
Guinea-Bissau. . . 
Guyana 
Haiti 
Holy See .... 
Honduras .... 
Hungary 
K eland 
lujia 
Indonesia .... 
Iran 
Iraq 
Ireland Basic Additional 
»otet votes Total State 
150 207 357 Israel 
150 157 307 Italy 
150 245 395 Ivory Coast 
150 241 391 Jamaica 
150 346 496 Japan 
150 925 1075 Jordan 
150 502 652 Kenva 
150 197 347 Kuwait 
150 197 347 Lao People's 
150 276 426 Democratic Republic 
150 . 199 349 Lebanon 
150 747 897 Lesotho 
150 197 347 Liberia 
150 193 343 Libyan Arab 
150 230 380 Jamahiriya . . . . 
150 197 347 Liechtenstein . . . . 
150 874 1024 Luxembourg . . . . 
150 267 417 Madagascar . . . . 
150 205 355 Malawi 
150 193 343 Malaysia 
Maldives 
150 151 301 Mali 
150 1650 1 800 Malta 
150 193 343 Mauritania 
Mauritius 
150 199 349 Mexico 
150 201 351 Monaco 
150 402 552 Mongolia 
150 2 850 3 000 Morocco 
150 340 490 Mozambique . . . . 
150 193 343 Nauru 
150 201 351 Nepal 
150 243 393 Netherlands . . . . 
150 434 584 New Zealand . . . . 
150 193 343 Nicaragua 
150 5*2 732 Niger 
Nigeria 
150 197 }47 Norway 
Oman 
150 205 355 Pakistan 
150 197 347 Panama 
150 493 643 Papua New Guinea . . 
150 193 343 Paraguay 
150 193 343 Peru 
150 253 403 Philippines 
150 241 391 Poland 
150 326 476 Portugal 
150 245 395 Qatar 
150 197 347 Republic of Korea . . 
150 216 366 Romania 
150 207 357 Rwanda 
150 385 535 Saint Lucia 
150 3 188 3 338 Saint Vincent and 
150 218 368 the Grenadines . . 
150 199 349 Samoa 
San Marino . . 
150 713 863 Sao Tome 
and Principe . . . 
150 4 212 4 362 Saudi Arabia . . . 
150 276 426 Senegal 
150 159 309 Seychelles ...... 
150 193 343 Sierra Leone .... 
150 251 401 Singapore 
150 207 357 Solomon Islands . . . 
150 193 343 Somalia 
150 2)6 366 South Africa .... 
150 203 353 Spain 
150 159 309 Sri Lanka 
150 222 372 Sudan 
150 387 537 Surinam e 
ISO 159 309 Swaziland 
150 471 621 Sweden 
150 425 575 Switzerland 
150 266 416 Syrian Arab 
150 226 376 Republic 
150 159 309 Thailand 
24 Banc Additional 
Total 
ISO 243 393 
150 1915 2 065 
150 326 476 
150 230 380 
150 5 352 5 502 
150 205 355 
150 237 387 
150 201 351 
150 195 345 
150 207 357 
150 193 343 
150 243 393 
150 208 358 
150 159 309 
150 159 309 
150 210 360 
150 201 351 
150 618 768 
150 193 343 
150 201 351 
150 197 347 
150 216 366 
150 220 370 
150 319 469 
150 159 309 
150 157 307 
150 299 449 
150 210 360 
150 193 343 
150 195 345 
150 936 1086 
150 159 309 
150 232 382 
150 197 347 
150 290 440 
150 399 549 
150 193 343 
150 257 • 407 
ISO 208 358 
150 239 389 
150 207 357 
150 295 445 
150 430 580 
150 737 887 
150 159 309 
150 193 343 
150 340 490 
ISO 313 463 
150 201 351 
150 193 343 
150 193 343 
150 193 343 
150 159 309 
150 195 345 
150 207 357 
150 232 382 
150 193 343 
150 201 351 
150 291 441 
150 195 345 
150 197 347 
150 652 802 
150 976 1 126 
150 263 413 
150 263 413 
150 205 355 
150 205 355 
150 779 929 
150 691 841 
ISO 232 382 
150 299 449 
3<f. 
Stair 
Togo 
Tonga 
Trinidad 
and Tobago ... 
Tunisia 
Turkey 
Uganda 
Ukrainian Soviet 
Socialist Republic. . 
Union of Soviet 
Socialist Republics 
United Arab 
Emirates 
United Kingdom 
of Great Britain 
and Northern Ireland BOSK 
mn 
150 
150 
150 
150 
150 
150 
150 
150 
150 
150 Additional 
rule* 
206 
193 
203 
230 
159 
245 
151 
4 107 
197 
2400 Total 
358 
343 
353 
380 
309 
395 
301 
4 257 
347 
2 550 Stair 
United Republic 
of Cameroon . . . 
United Republic 
of Tanzania .... 
United States 
of America .... 
Upper Volta .... 
Viet Nam 
Zimbabwe 
OVERALL TOTAL Basic 
rotes 
150 
150 
ISO 
150 
150 
150 
150 
150 
150 
150 
150 
150 
24 450 Additional 
rtiiei 
239 
230 
11738 
197 
214 
251 
216 
197 
338 
326 
355 
193 
79 924 Total 
389 
380 
11888 
347 
364 
401 
366 
347 
488 
476 
505 
343 
104 374 
SCHEDULE E 
Election of Executive Directors 
1. The Executive Directors and their alternates shall be elected 
by ballot of the Governors. 
2. Balloting shall be for candidatures. Each candidature shall 
comprise a person nominated by a Member for Executive Director 
and a person nominated by the same Member or another Member 
for alternate. The two persons forming each candidature need not 
be of the same nationality. 
3. Each Governor shall cast for one candidature all of the votes 
to which the Member which appointed that Governor is entitled 
under schedule D. 
4. The 28 candidatures receiving the greatest number of votes 
shall be elected, provided that no candidature has received less 
than 25 per cent of the total voting power. 
5. If 28 candidatures are not elected on the first ballot a se­
cond ballot shall be held in which shall vote only: 
(a) Those Governors who voted in the first ballot for a candida­
ture not elected; 
(b) Those Governors whose votes for an elected candidature are 
deemed under paragraph 6 of this schedule to have raised the 
votes cast for that candidature above 3.5 per cent of the total 
voting power. 
6. In determining whether the votes cast by a Governor are to 
be deemed to have raised the total of any candidature above 3.5 
per cent of the total voting power, the percentage shall be deemed 
to exclude, first, the votes of the Governor casting the smallest 
number of votes for that candidature, then the votes of the Gover­
nor casting the second smallest number of votes, and so on until 
3.5 per cent, or a figure below 3.5 per cent but above 25 per cent, 
is reached; except that any Governor whose votes must be counted 
in order to raise the total of any candidature above 2.5 per cent 
shall be considered as casting all of his votes for that candidature. even if the total votes for that candidature thereby exceed 3.5 per 
cent 
7. If. on any ballot, two or more Governors holding an equal 
number of votes have voted for the same candidature and the 
votes of one or more, but not all. of such Governors could be 
deemed to have raised the total votes above 3.5 per cent of the 
tout voting power, whoever among them shall be entitled to vote 
on the next ballot if a next ballot is required, shall be determined 
by lot. 
8. For determining whether a candidature is elected at the se­
cond ballot, and who are the Governors whose votes shall be 
deemed to have elected that candidature, the minimum and 
maximum percentages specified in paragraphs 4 and 5 (b) of this 
schedule and the procedures described in paragraphs 6 and 7 of 
this schedule shall apply. 
9. If, after the second ballot, 28 candidatures have not been 
elected, further ballots shall be held on the same principles until 
27 candidatures have been elected. After this, the twenty-eighth 
candidature shall be elected by a simple majority of the remaining 
votes. 
10. In the event that a Governor votes for an unsuccessful can­
didature in the last ballot held, that Governor may designate a 
successful candidature, if the latter agrees, to represent in the Exe­
cutive Board the Member which appointed that Governor. In this 
case, the ceiling of 3.5 per cent specified in paragraph 5 ib) of this 
schedule shall not apply to the candidature so designated 
11. When a State accedes to this Agreement in the interval 
between elections of the Executive Directors, it may designate any 
of the Executive Directors, if the latter agrees, to represent it in the 
Executive Board. In this case, the ceiling of 3.5 per cent specified 
in paragraph 5 (b) of this schedule shall not apply. 
33 
2$ 
SCHEDULE F 
Us* of 
The value of one Unit of Account shall be the sum of the values of the fbttowing currency 
units converted into any one of those currencies: 
United Sûtes dollar 0.40 
Deutsche mark 0.32 
Japanese yen 21 
French franc . 0.42 
Pound sterling 0.050 
Italian lira 52 
Netherlands guilder 0.14 
Canadian dollar 0.070 
Belgian franc 1.6 
Saudi Arabian riyal . 0.13 
Swedish krona Oil 
Iranian rial 1.7 
Australian dollar 0.017 
Spanish peseta 1.5 
Norwegian krone 0.10 
Austrian schilling. . . . 029 
Any change in the list of the currencies that determine the value of the Unit of Account, and 
in the amounts of these currencies, shall be made in accordance with rules and régulations 
adopted by the Governing Council by a Qualified Majority in conformity with the practice of a 
competent international monetary organization. ** 
26 3</ 
Part Two 
FINAL ACT OF THE UNITED NATIONS NEGOTIATING CONFERENCE ON A COMMON FUND 
UNDER THE INTEGRATED PROGRAMME FOR COMMODITIES 
1. The United Nations Conference on Trade and 
Development, in its resolution 93 (IV) on the Inte­
grated Programme for Commodities, agreed that 
steps would be taken towards establishing a common 
fund and requested the Secretary-General of UNC-
TAD to convene a negotiating conference open to all 
members of UNCTAD no later than March 1977. It 
further requested the Secretary-General of UNC­
TAD to convene preparatory meetings prior to such 
a conference. 
2. After three preparatory meetings had been 
held pursuant to that request, the United Nations 
Negotiating Conference on a Common Fund under 
the Integrated Programme for Commodities was ac­
cordingly convened at the Palais des Nations. Ge­
neva, on 7 March 1977. The Conference held four 
sessions, the first from 7 March to 2 April 1977, the 
second from 7 November to I December 1977 and 
from 14 to 30 November 1978. the third from 12 to 
19 March 1979 and the fourth from 5 to 27 June 
19801. 
3. At its third session the Conference adopted re­
solution 1 (III) on the fundamental elements of the 
Common Fund: and requested the Secretary-Gen­
eral of UNCTAD to convene an Interim Committee 
of the Negotiating Conference, open to the participa­
tion of all Stales members of UNCTAD. to consider 
the elements requiring further elaboration, to draft 
the Articles of Agreement of the Common Fund, and 
to make recommendations regarding the preparatory 
work required to bring the Fund into operation. The 
Interim Committee held five sessions, the first from 3 
to 14 September 1979. the second from 22 October to 
2 November 1979. the third from 3 to 14 December 
1979. and the fourth from 18 February to 5 March 
1980 and the fifth from 8 to 19 April 1980. 
4. Representatives of the following 124 States 
members of UNCTAD participated in one or more 
sessions of the Conference, namely representatives 
of: Afghanistan: Algeria: Argentina; Australia; Aus­
tria: Bangladesh; Barbados; Belgium; Benin; Bolivia; 
Botswana: Brazil; Bulgaria: Burma: Burundi; Can­
ada: Central African Republic; Chad; Chile; China; 
Colombia; Congo; Costa Rica; Cuba: Cyprus; 
Czechoslovakia; Democratic People's Republic of 
Korea: Democratic Yemen, Denmark; Djibouti; 
Dominican Republic; Ecuador; Egypt; El Salvador; 
Ethiopia; Finland: France: Gabon; Gambia; German 
Democratic Republic; Germany. Federal Republic 
of: Ghana: Greece: Guatemala: Guinea; Haiti; Hon­
duras: Hungary: India; Indonesia; Iran: Iraq; Ireland: 
Israel: Italy; Ivory Coast; Jamaica; Japan; Jordan: 
1 T> * reports of the Conference were circulated under the fol-
lowingjymbols: first session. TD/IPC/CF/CONF/8. second ses-
r.on, TD/lPC/CF/CONF/14 (Part I), and resumed second ses­
sion. TD/IPC/CF/CONF/14 (Part II): third session. TD/IPC/ 
CF'CONF/19; fcurth session, TD/IPC/CF/CONF/26. 
'TD/IPC/CONF/JÇ. annex I. Kenya; Kuwait; Lebanon; Liberia, Libyan Arab 
Jamahiriya: Luxembourg; Madagascar. Malawi; 
Malaysia; Mali; Malta; Mauritius; Mexico: Mon­
golia;" Morocco; Mozambique; Netherlands; New 
Zealand; Nicaragua: Niger, Nigeria; Norway: Oman; 
Pakistan; Panama; Papua New Guinea; Peru; Philip­
pines; Poland; Portugal: Qatar; Republic of Korea; 
Romania; Rwanda: Saudi Arabia: Senegal: Sierra 
Leone: Singapore: Somalia; Spain; Sri Lanka: Sudan. 
Swaziland; Sweden; Switzerland; Syrian Arab Re­
public; Thailand; Togo; Trinidad and Tobago: 
Tunisia; Turkey; Uganda; Union of Soviet Socialist 
Republics: United Arab Emirates; United Kingdom 
of Great Britain and Northern Ireland; United Re­
public of Cameroon; United Republic of Tanzania: 
United States of America; Uruguay; Venezuela; Viet 
Nam: Yemen: Yugoslavia: Zaire; Zambia. 
5. The following State member of UNCTAD was 
represented at the Conference by an observer: Holy 
See. 
6. The following United Nations organs were re­
presented at the Conference by observers: Depart­
ment of International Economic and Social Affairs of 
the United Nations Secretariat. Economic Commis­
sion for Europe. Economic Commission for Africa. 
United Nations Industrial Development Organiza­
tion. United Nations Environment Programme. 
United Nations Development Programme, World 
Food Council. International Trade Centre. 
7. The following specialized and related agencies 
were represented at the Conference by observers: In­
ternational Labour Organisation. Food and Agricul­
ture Organization of the United Nations. World 
Bank. International Monetary Fund. General Agree­
ment on TarifTs and Trade. 
8. The following intergovernmental organizations 
were represented at the Conference by observers. Af­
rican and Mauritian Common Organization. African 
Development Bank. African Groundnut Council. As­
sociation of Iron Ore Exporting Countries. Common­
wealth Secretariat Council of Arab Economic Unit>. 
Economic Community of the Great Lakes Countries. 
European Economic Community. European Free 
Trade Association. Inter-American Developement 
Bank Intergovernmental Council of Copper Export­
ing Countries. International Bauxite Association. In­
ternational Cocoa Organization. Latin American 
Economic System. League of Arab States. Organ­
isation for Economic Co-operation and Develop­
ment. Organization of African Unity. Organization 
of American States. Organization of the Islamic Con­
ference. Organization of the Petroleum Exporting 
Countries. Permanent Secretariat of the General 
Treatv on Central American Economic Integration. 
OPEC Fund. 
9. The following non-governmental organizations 
were admitted as observers to the Conference by de­
cision of the Conference at its second session: 
Friends World Committee for Consultation (Qua-
27 
kers). International Chamber of Commerce. Interna­
tional Confederation of Free Trade Unions, Interna­
tional Co-operation for Socio-Economic Develop­
ment. International Federation of Cotton and Allied 
Textile Industries. World Developement Movement, 
World Federation of United Nations Associations. 
10. The following organization participated in 
the Conference, having been invited pursuant to 
General Assembly resolution 3280 (XXIX): Pan Afri-
canist Congress of Azania. 
11. The Conference elected Mr. H. S. Walker 
(Jamaica) as its President. 
12. The Conference, at its first session, elected the 
following Vice-Presidents: Mr. A. Alatas (Indonesia). 
Mr. An Chih-yuan (China). Mr. M. Armendâriz 
(Mexico). Mr. N. Boerner (United States of Amer­
ica). Mr. J. Cuttat (Switzerland). Mr. O. El-Shafei 
(Egypt). Mr. T. Fabian (Hungary). Mr. D. Hilton 
(Canada). Mr. F. Jaramillo (Colombia). Mr. S. A. M. 
S. Kibria (Bangladesh). Mr. D. N. M. Mloka (United 
Republic of Tanzania). Mr. M. Pravda (Czechoslo­
vakia). Mr. M. Seo (Japan). Mr. J. R. Steele (United 
Kingdom of Great Britain and Northern Ireland). 
13. At its second session, the Conference elected 
as Vice-Presidents Mr. A. Gonzâlez-de-Leôn (Me­
xico), to replace Mr. M. Armendâriz (Mexico). Mr. 
D. Laloux (Belgium) to replace Mr. J. R. Steele 
(United Kingdom of Great Britain and Northern 
Ireland), and Mr. A. Wendt (United States of Amer­
ica) to replace Mr. M. Boerner (United States of 
America). 
14. At its resumed second session, the Conference 
elected as Vice-Presidents representatives of: Mexico 
(Mr. M. Armendâriz to replace Mr. A. Gonzâlez-de-
Leôn of Mexico); United Republic of Tanzania (Mr. 
W. Chagula to replace Mr. D. N. M. Mloka of the 
United Republic of Tanzania); Hungary (Mr. F. Fu-
rulyas to replace Mr. T. Fabian of Hungary); 
Czechoslovakia (Mr. R. HIavaty to replace Mr. M. 
Pravda of Czechoslovakia); Bangladesh (Mr. S. 
Karim to replace Mr. S. A. M. S. Kibria of 
Bangladesh): Federal Republic of Germany (Mr. W. 
Mueller-Thuns to replace Mr. D. Laloux of Bel­
gium). 
15. At its fourth session, the Conference elected 
as Vice-President Mr. H. Diaz-Thomé (Mexico) to 
replace Mr. M. Armendâriz (Mexico). Mr. T. Fabian 
(Hungary) to replace Mr. F. Furulyas (Hungary). 
Mr. J. Ferriter (United States of America) to replace 
Mr. A. Wendt (United States of America), Mr. S. 
Kobavashi (Japan) to replace Mr. M. Seo (Japan). 
Mr. ù. Surquin (Belgium) to replace Mr. J. Cuttat 
(Switzerland) and Mr. Zheng Tuobin (China) to re­
place Mr. An Chih-yuan (China). 
16. The Conference elected Mr. S. Wolnik 
(Poland) as Rapporteur. At its second session it 
elected Mr. S. Borowy (Poland) to replace Mr. S. 
Wolnik (Poland). At the resumed second session it 
elected Mr. J. Toczek (Poland) to replace Mr. S. Bo­
rowy (Poland). 
17. At its first session, the Conference established 
a Committee of the Whole and allocated to it further 
consideration of item 9 of its agenda. "Negotiation of a common fund pursuant to Conference resolution 
93 (IV) on the Integrated Programme for Com­
modities". The President. Vice-Presidents and Rap­
porteur of the Conference served as Chairman. 
Vice-Chairmen and Rapporteur respectively of the 
Committee of the Whole. 
18. At its first session the Conference established 
a Credentials Committee consisting of the represen­
tatives of: China, Ecuador, El Salvador. Ivory Coast. 
Malaysia, Netherlands. Union of Soviet Socialist Re­
publics. United States of America and Zambia. Mr. 
G van der Tak (Netherlands) was elected Chairman 
of the Credentials Committee. At the fourth session 
of the Conference Mr. van der Tak was replaced by 
Mr. K. Fraterman (Netherlands) as Chairman of the 
Credentials Committee. 
19. At the first session, the Committee of the 
Whole established three negotiating groups to deal 
with the following aspects of the establishment of a 
common fund: 
Negotiating Group I: Preamble; objectives and 
purposes ; modes of operation 
Negotiating Group II: Financial matters 
Negotiating Group III: Decision-making and fund 
management 
20. At the first session of the Conference. 
Negotiating Group I elected Mr. T. G. R. Tscherning 
(Sweden) as Chairman. Mr. S. T. Matturi (Sierra 
Leone) as Vice-Chairman, and Mr. L. Sekulic 
(Yugoslavia) as Rapporteur. Negotiating Group II 
elected Mr. A. Al-Tijani Salih (United Arab Emir­
ates) as Chairman. Mr. K. Waller (Australia) as 
Vice-Chairman, and Mrs. A. Auguste (Trinidad and 
Tobago) as Rapporteur. Negotiating Group III 
elected Mr. J. Muliro (Kenya) as Chairman. Mr. L. 
A. Denisov (Union of Soviet Socialist Republics) as 
Vice-Chairman. and Mr. S. Nagai (Japan) as Rap­
porteur. 
21. At the second session of the Conference. Mr. 
T. G. R. Tscherning (Sweden) was replaced by Mr. 
K. G. Lagerfelt (Sweden) as Chairman of Negotiat­
ing Group I. 
22. At the resumed second session Mr. K. G. 
Lagerfelt (Sweden) was replaced by Mr. D. Laloux 
(Belgium) as Chairman of Negotiating Group I. Mr. 
A. Al-Tijani Salih (United Arab Emirates) was re­
placed by Mr. J. K. A. Marker (Pakistan) as Chair­
man of Negotiating Group II. and Mr. J. Muliro 
(Kenya) was replaced by Mr. M. Oreibi (Libyan 
Arab Jamahiriya) as Chairman of Negotiating 
Group III. Mr. K. Waller (Australia) was replaced by 
Mr. J. W. Keany (Australia) as Vice-Chairman of 
Negotiating Group II and Mr. L. A. Denisov (Union 
of Soviet Socialist Republics) as Vice-Chairman of 
Negotiating Group III. Mrs. A. Auguste (Trinidad 
and Tobago) was replaced by Mr. P. Dass (Trinidad 
and Tobago) as Rapporteur of Negotiating Group II 
and Mr. S. Nagai (Japan) was replaced by Mr. S. 
Naito (Japan) as Rapporteur of Negotiating Group 
III. 
23. At the fourth session of the Conference, the 
Committee of the Whole established three working 
groups, to which it allocated consideration of a 
number of outstanding issues relating to the First Ac-
28 
% 
count. Second Account and administrative and legal 
questions, respectively. 
24. Mr. J.-V. Gbeho (Ghana) was elected as 
Chairman of Working Group I and Mr. S. Ko-
bayashi (Japan) as Vice-Chairman. Mr. J. K. A. 
Marker (Pakistan) was elected Chairman of Working 
Group II and Mr. G. Surquin (Belgium) was elected 
Chairman of Working Group III. 
25. At the fourth session of the Conference, the 
Committee of the Whole established a Legal Draft­
ing Committee to examine the texts of articles for the 
purpose of ensuring that they were consistent from 
the legal and linguistic standpoints and of correcting 
all linguistic, grammatical and typographical errors 
in the Arabic. Chinese. English. French. Russian and 
Spanish texts of the Agreement. The Legal Drafting 
Committee was composed of representatives of the 
following States: Brazil. Canada. China. Colombia. 
Ghana. Hungary. India. Iraq. Jamaica. Japan. 
Malaysia. Netherlands. Nigeria. Senegal. Spain. Su­
dan. Thailand. Union of Soviet Socialist Republics. 
United Kingdom of Great Britain and Northern 
Ireland. United States of America and Venezuela. 
Mr. T. De Bruyn (Netherlands) was elected Chair­
man of the Legal Drafting Committee. 
26. The Conference was opened bv Mr. Gamani 
Corea. Secretary-General of UNCTAD. Mr. B. T. G. 
Chidzero. Director of the Commodities Division of 
UNCTAD, acted as Director-in-charge of the Con­
ference. At the second session Mr. Chidzero was re­
placed by Mr. A. Mclntyre. Director of the Com­
modities Division of UNCTAD. as Director-in-
charee. Mr. K. W. Scott acted as Secretary of the 
Conference. Mr. Scott was replaced by Mr. I. Nicolle 
as Secretary at the resumed second session and at the 
third session of the Conference. Mr. D. W. Caulfield 
acted as Legal Adviser to the Conference. 
"27. On the basis of its deliberations as recorded 
in the reports of the Conference on its first, second. resumed second, third and fourth sessions. ' the Con­
ference prepared the AGREEMENT ESTABLISHING THE 
COMMON FUND FOR COMMODITIES. 
28. The Conference adopted the text of the 
Agreement on 27 June 1980 and provided that the 
Agreement should be open for signature by all States 
listed in schedule A to the Agreement, and by inter­
governmental organizations specified in article 4 (b) 
of the Agreement, at United Nations Headquarters 
in New York from 1 October 1980 until one year 
after the date of its entry into force. 
29. The Agreement is deposited with the Secre­
tary-General of the United Nations. 
30. The Conference also adopted on 27 June 
1980 a resolution establishing a Preparatory Com­
mission for the Common Fund for Commodities. 
The text of the resolution adopted by the Conference 
is annexed to this Final Act. 
IN WITNESS WHEREOF the undersigned representa­
tives have signed this Final Act on behalf of their 
respective States. 
DONE at Geneva, this twenty-seventh day of June, 
one thousand nine hundred and eighty, in a single 
copy in the Arabic. Chinese. English. French. Rus­
sian and Spanish languages, each text being equally 
authentic. 
President of the Conference 
Secretary-General of L'SCTAD 
Director-in-charge of the Conference 
Secretary of the Conference 
'TD/IPC/CF/CONF/8, TD/IPC/CF/CONF/M. Part I and 
Part II. TD/IPC/CF/CONF/19 and TD/IPC/CF/CONF/26 
29 '"> o-/ 
Annex 
RESOLUTION ADOPTED BY THE CONFERENCE 
Establishment of a Preparatory Coauaiaakia for bringfatg the lata 
The United Salions Negotiating Conference on a Common Fund 
under the Integrated Programme for Commodities 
1. Decides that: 
(a) A Preparatory Commission shall be established, composed 
of 28 Sûtes. * The Preparatory Commission shall be open to repre­
sentatives of all other participants in the Conference eligible to 
sign the Agreement establishing the Common Fund for Com­
modities; 
(b) The Preparatory Commission shall elect a Chairman and two 
Vice-Chairmen from among the representatives of the participat­
ing Slates members of the Commission; 
(c) The Preparatory Commission shall continue in existence un­
til the first meeting of the Governing Council of the Fund is con­
vened, whereupon the Fund shall succeed to all rights and obliga­
tions of the Commission. If the Agreement has not entered into 
force by the time specified in article 57. paragraph 1. thereof, the 
Preparatory Commission shall be terminated no later than three 
months thereafter; 
(d) The Preparatory Commission shall: 
(i) Prepare for submission to the Governing Council of the 
Fund proposals concerning the following instruments: 
a Rules of procedure of the Governing Council and of the 
Executive Board; 
b. Rules and regulations for the conduct of the business of the 
Fund; 
c. Working papers on policies, criteria and regulations to 
govern financing operations by the Fund, including an 
outline of a model Association Agreement; 
' The names of the States are to be communicated to the Secre­
tary-General of UNCTAD prior to the first meeting of the Pre­
paratory Commission. d Rules and regulations for the Consultative Committee, 
e Staff regulations; 
/ An administrative budget reflecting the staffing and finan­
cial requirements for the first fiscal period of the Fund; 
(a) Undertake any other related tasks; 
1 Requests the Secretary-General of UNCTAD: 
(a) To establish, after consultation with the Chairman of the 
Preparatory Commission, a Special Unit for the servicing of the 
Commission; 
(6) To convene the first annual meeting of the Governing Coun­
cil of the Fund as soon as possible after the entry into force of the 
Agreement; 
(c) To convene, within a period of three months after 31 March 
1982, a meeting of the States having deposited their instruments of 
ratification, acceptance or approval, if. by such time, the Agree­
ment has not entered into force, and. if appropriate, to convene 
any subsequent meeting; 
3. Decides that, pursuant to General Assembly decision 34/446 
of 19 December 1979, the expenses incurred by the work referred 
to above, with the exclusion of expenses incurred by members of 
and participants in the Commission in attending its meetings, may 
be met from the funds advanced by the General Assembly, which 
shall be repaid by the Fund as soon as possible after the entry into 
force of the Agreement Should these funds be insufficient, ad­
vances may be provided by Sûtes, which may be set off against 
their subscriptions of Shares of Directly Contributed Capital of 
the Fund. 
28th plenary meeting 
27 June 1980 
30 3g 


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