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COMMISSION OFTHEEURO£ANCOMMUNITIES
COM(75)45final
Brussels,12February1975
SECONDGENERALCONFERENCE OF..
THEUNITEDNATIONSINDUSTRIAL
DEVELOPMENT ORGANIZATION (UNIDO)
tobeheldinLimafrom12"to26March1975
Preparation oftheCommunitycontribution
(Commissioncommunication totheCouncil)
CCM(75)45final

1
CONTENTS
Pages
I.The Lima Conférence 2
A.Aims 2
B.Préparation 3
II.What isatstake atthe Conference and the role ofthe
Community 5
III .Guidelines onInternational industriai cooperation 9
IV.Community position onthe Group of77'sproposals 18
A.Specific industrialization problems ofthe developing
countries 19
B.Matters for which other United Nations "bodies aire
responsible 27
ANNEX
*
* s
This Commission Communication totheCouncil istohelp prepare
fortheparticipation oftheCommunity andtheMember States inthe
second General Conference oftheUnited Nations Industrial Development
Organization (UNIDO ),tobeheld inLima from 12to26March 1975 *
TheCommission proposes that theCouncil adopt theguidelines set out
initregarding theaction tobetaken bytheCommunity andtheMember
States inrespect oftheproblems with which will beconfronted atthat
Conference .
Inorder tofacilitate work within theCouncil ,theCommission has
drawn upaworking paper which isbased onthetext ofthe Group of77
andincludes the amendments considered necessary totake account ofthe
guidelines included inthis document (seeAnnex ).

2«
I.TheLimaConférence
A.Aims
In1972Resolutions (33-Vl)oftheIndustrialDevelopmentBoard
and2952(XXVII)oftheUnitedNationsGeneralAssemblystatedthat
thesecondGeneralConferenceofUNTDOshould "beconvenedwiththe
aimofexamininganumberofmajor "butnarrowlydefinedquestions:
i.progressmadeinandproblemsarisingfromtheindustriali­
zationofthedevelopingcountriesduringtheSecond
Development Decade;
ii.recommendations ofthehigh–levelgroupofexpertson
UNIDO'slong-termstrategy;
iii.implementation oftherecommendations oftheFirstUNIDO
International Conferenceheldin1971*
Resolution3087(XXVIIl),unanimouslyadopted "bytheUnited
NationsGeneralAssemblyon6December1973,containsthedirectives
givenfortheConferenceandstatesthatitwilltakeplace.inLima
from12to26March1975*
TheConferenceistoexaminecooperation onindustrialization
"betweendevelopedanddevelopingcountriesandbetweendeveloping
countriesthemselves :
i.withaviewtodeterminingthebasicprinciplesforan
international declaration ondevelopment andindustrial
cooperation ;and
ii.withtheaimofdefiningawide-ranging planofactionfor
assistancetothedevelopingcountries,andmoreparticu­
larlytotheleastdevelopedamongstthem,intheirefforts
tospeeduptheirindustrialization andtosecureforthem­
selvesafairshareofindustrialactivity.
ThisResolution madequiteafundamental changeinthescopeof
theConferencebysettingforitmuchwideraimsthanhadoriginally
beenplanned.
Thesewiderobjectivesappreciably changedtheoriginalcontext
oftheConference.Ithadinitiallycloselyreflectedthestrategy
oftheSecondDevelopment Decade,buttheLimaConferencehasnowbecome

3
acontinuation oftheSixth Special Session oftheUnited Nations and
refers tothevery recent Charter ofEconomic Rights andDuties of
States .Itsraison d'etre istohelp tocontribute inthe industrial
sector tocreating thenew international economic order .
Tothetwo initial objectives –thedeclaration andtheplan of
action -must "beadded athird ,which is,moreover ,closely linked
with theimplementation ofthenewguidelines forinternational
industrial cooperation laid down intheplan ofaction :thestreng­
thening ofUNIDO ,both byamending theinstitutional provisions which
govern itsoastoprovide greater autonomy andbyassignihg itnew
tasks regarding consultation onaworld –wide scale .
B.Préparation
The long-term preparation fortheConference wascarried out at
instigation oftheUNIDO Secretariat ,mainly through anumber of
regional industrial conferences atwhich thedeveloping countries
prepared their positions intheform ofdeclarations andregional
action programmes .Following this ,theimmediate preparation for
theConference took place inVienna within theStanding Committee of
theIndustrial Development' Board ,meeting asaPreparatory Committee .
During thefirst part ofthis session ofthePreparatory Commi­
ttee (2to14December 1974 ),theGroup of77combined theregional
declarations ofthedeveloping countries into onedraft declaration /
programme ofaction which wasunofficially communicated tothe other
groups .TheGroup of77hasstressed that this isonly apreliminary docu­
ment which will not become official until after the ministerial mee­
ting inAlgiers (15to18February 1975 )* Group B(industrialized
countries )hasdrawn upandofficially transmitted itsownpreliminary
1Thesame Resolution 3202 (5-Vl )oftheGeneral Assembly lays down
that the recommendations made atLima will beexamined atthe next
Special Session ondevelopment scheduled forSeptember 1975 •
2Resolution 3306 (XXIX ),passed on14December bytheUnited Nations
General Assembly .

4.
text based ontherevised version ofanOECD paper .
\
Thesecond part ofthePreparatory Committee session (20to27
January 1975 )enabled thevarious groups todefine their positions
more clearly .Group D(socialist countries ,with theexpress
exception ofRomania )officially presented anumber ofspecific
amendments totheGroup of77*stext .Group Bdrew upanewdraft
declaration /plan ofaction which also took theGroup of77'stext
into account .TheGroup of77,abiding bytheir previous decision
refused toenter into anynegotiations# Ultimately ,they felt
they had toagree that thePreparatory Committee should become anun­
official advisory working party fortwohours inorder torecord the
developing countries' reactions totheir document asthemain basis
forthework oftheConference .Itwas inresponse tothis that
Group Bofficially communicated itsnewtext .The Group of77
expressed itssatisfaction with Group B'sreaction although it
emphasized theinadequacy ofthedocument ,which itconsidered largely
incomplete andwould have preferred tobe intheform ofspecific
proposals foramendments toitsowntext ,aswasthecase with Group
D'sdocument .
Theprevious day ,theIrish representative hadmade adeclaration
onbehalf oftheCommunity which wasparticularly well received bythe
Group of77^.Thishelped considerably torelieve thestrained
atmosphere ofthemeeting andmake possible thebrief informal ex­
change ofviews held just before theend .„
1Working paper No 1:"Preliminary notes foradeclaration ofprinci­
ple onindustrial development andplan ofaction submitted byGroup
B." (7December 1974 )•
^Exceptionally ,thespring meeting oftheStanding Committee didnot
take place .TheIndustrial Development Board will meet inVienna
from 21April to2May 1975 ,inparticular toexamine thedecisions
and recommendations ofLima .
^AttheAlgerian representative 'srequest theCommunity declaration
wasimmediately distributed inalllanguages bytheUNIDO Secretariat .

.What isatstake atthe Conference andtherole oftheCommunity
1.There isnodoubt whatever that thetheme ofindustrial cooper­
ation isparticularly important andtopical atatime when interna­
tional economic relations areundergoing radical changes .Inour
relations with many developing countries thetraditional ideas of
development aid seem outmoded .Those countries arenow seeking to
give newsubstance totheir cooperation with industrialized countries ,
and ofthenewforms ofcooperation that inthe industrial field will
occupy pride ofplace .TheLima Conference could therefore bea
good opportunity totake stock ,exchange ideas anddefine anoverall
policy inthis field .
Butwill this objective bepossible inthe general climate ofthe
Conference ?
2.From thepoint ofview ofthedeveloping countries ,theprep­
aratory work fortheConference hasrevealed theenormous danger of
aconfrontation between developing anddeveloped countries .
TheGroup of77sdocument ,which ismuch more demanding and
contains stronger claims than theregional declarations –particu­
larly thefairly moderate ones from theAsian ,Pacific andAfrican
countries -reflects theharder line thedeveloping countries are
1taking .This line isadirect extension ofwhat happened inNew
York (6thSpecial Session oftheUN,Charter ).
The spokesmen ofthe Group of77made itquite clear inthe
Preparatory Committee that thedeveloping countries were resolved
nottoallow atLima anydeclarations ofprinciple which inany
way deviated from the texts ofthe sixth session of
1This text isstill tobeapproved bytheministers oftheGroup of
77attheir meeting of15to18February inAlgiers .Itseems
unlikely that anymajor amendments will bemade and thehard-line
position ismore likely toprevail intheevent ofchanges being
made .

6.
theCharter -which they considered assomething that hadalready
been achieved –whatever thereservations expressed inthefirst
case orthevoting inthesecond .
Since these arespecific proposals foraction ,itshould "be
noted that thepoints atissue areoften outside thefield of'
industrialization proper and/orareintheprocess of "being examined
elsewhere within the framework ofthe United Nations .
Ittherefore seems that thedeveloping countries have chosen to
apply with perserverance andasolid front anoverall strategy aimed
atusing every opportunity offurthering ,even imperceptibly ,the
demands they regard asfundamental# They mention interdependence ,
international cooperation ,theneed foradialogue andforconcerted
action "butatthe same time accept therisk ofaconfrontation per*-
haps ending inavote with anautomatically large majority "bythe
developing countries onatext imposed "bythem onthemeeting asthe
only "basis fordiscussion anddecision .
3.Howwill theCommunity have toreact tothis risk ofanew con­
frontation ?
Intheory itcanadopt oneoftwoattitudes .Itcaneither adopt a
harder line inresponse tothedeveloping countries' tendency towards
confrontation orcarry onareasonable dialogue with theGroup of77
based ontheconcrete problems oftheConference .Thelatter attitude ,
although much more constructive ,perhaps harder toadopt inthe
short run ,wsuld inthelonger term enable cooperation tobedeveloped
andaharsh confrontation between rich andpoor countries tobe
avoided .
Discussions atUNTDO have inparticular demonstrated thedrawbacks
oftheformula involving consensus ofopinion plus general or
specific reservations onUnited Rations resolutions ,drawbacks no
longer taken into account insubsequent discussions held elsewhere .proper
nefra

7.
Itisclear-thattheCommissionisverymuchinfavourorthe
secondapproaeh,particularlysincetheCommunity-whichhasstarted
theprocessofprogressively implementing aglobaldevelopmentcooper­
ationpolicyandispreparingtotryoutaconcreteindustrialcooper­
ationpolicywithalargenumberofdevelopingcountries-hasalready
clearlyoptedforcooperation.Ithasdemonstratedthisthrougha
numberofrecentinitiatives,bothintheregionalpartofits
cooperationpolicyandintheworld–widepart*
TheCommunitywill"beseeninamorefavourablelightatLima
sinceinMarchitwill"beabletopointtotheindustrialcontentof
theLomeConventionwhichwillhavebeenconcludedin themeantimewith;
theACPStates,andtotheresultswhichwillbeachievedinthesame
sectorunderthenegotiations withtheMaghrebcountries.Itwillalsbbei
abletopointtotheimprovements madetothegeneralizedpreferences
system,whichitwasthefirsttoimplement,andtheprospectsfor
economiccooperationwithcertainnon-associated developingcountries.
TheCommunitywillthusbeabletoshowthat,foritspartandin
spiteofthe,crisisininternational economicrelations,partner­
shipismuchmorethanameretheoreticalobjective.
IftheCommunityhaschosenthepathofcooperation ,parti­
cularlythatofindustrialcooperation ,itisalsobecause,looking
beyondthecurrenteconomicdifficulties weareexperiencing ,the
developingcountries *industrialization isbynomeansinconflict
withitsownlong-terminterestsfromthepointofviewofabetter
international divisionoflabour.Thisisparticularly truefor
thedevelopingcountrieswhichnowpossessalargenumberoffactors
favourabletowardsrapiddevelopment ,whichwillcomeaboutwith,
without,orevenagainstthecountriesoftheCommunity.Inparti­
cular,forcertaincountriespossessingessentialrawmaterials,
industrialcooperationincreasingly aimedatraisingthevalueof
rawmaterialsonthespotmaybealegitimateandinteresting counter­
parttoEurope'sconcernforsuppliesandwiththerecoveryofgrowth.
4*ForvariousreasonstheCommunityanditsMemberStatesmust
showtheirunityattheLimaConference,

8.
Firstly,theGroupof77sdrafttextcontainsavastcollectionof
provisionswhicheitherfalldirectly,intheCommunity,withinitsjuris­
dictionundertheheadingofcommercialpolicy,orpresentparticular
interestforthecommonmarket,especiallyinviewoftheCouncil'sreso­
lutionof16July1974relatingtothealignmentandprogressive harmoni­
zationofthedevelopment cooperationpoliciesoftheMemberStatesof
theCommunity.
Tothismustheaddedamajorpoliticalreason:"byconcertingtheir
positionsandpresenting commonviews,theMemberStatesandtheCommunity,
inviewoftheincreasedsizeofthelatter,haveaveryrealchanceof
influencingtheoutcomeoftheworkandofguidingitinaconstructive
directionofdialogueandcooperation.Thepreparatory workinVienna
showedhowaCommunitydeclaration canchangethewholeclimate.Thereis
nodoubtatallthattheStatesactingindividually ,wouldfailtoachieve
thesameresult.Thesuccess,orthedegreeofsuccess,oftheConference
thereforedependstoalargeextentuponthis.
ThesearchforCommunityorconcertedpositionsshouldthereforebe
pursuedsystematically .Communitycoordination ,begunatViennafromthe
startof1974andcontinuedwithintheframeworkoftheCECDinNovember,
tookonitsfullmeaningduringtheworkofthePreparatory Committeeof
theIndustrialDevelopment BoardinDecember1974andJanuary1975inVienna.
SotheCommunity'spositionsandthepointsofjointactionbythe
MemberStatestobeputforwardattheConferenceshouldbeprepared
systematically .ItwillbepossibletocontinueCommunitycoordination
onthespotatLima,inaccordancewiththeusualproceduresfollowing
theguidelinesgivenbytheCouncil,sothatquestionsofdetailandfinal
wordingofthetextcanbesettledasthediscussionsproceed.
5.Itgoeswithoutsayingthat,eveniftheCommunitymakestheeffort
topromoteadialogueandbeconciliatoryassuggestedbytheCommission,
theriskoftheLimaConferencefailingisbynomeanscompletelyavoided.
However,theCommunitywillatleasthavedonewhatitcouldtocontribute
toapositiveoutcomeor,ifoneispessimistic,willhavebeingblamed
forfailure.

9-
III .Ouidelines for international industriai cooperation
Before embarking inChapter IVonadetailed analysis ofthe
Group of77*s draft Declaration andPlan ofAction ,this Chapter
suggests anumber ofgeneral guidelines forindustrial cooperation ,
illustrated "bycertain more specific proposals which "back upthe
constructive position theCommunity intends adopting inLima and
which could well help to "bridge the gap "between theapparently
incompatible positions ofdeveloping anddeveloped countries .These
guidelines andproposals could "beincluded inthe statement to "be
made atLima "bytherepresentative oftheCommunity .
1.Anintégral approach todevelopment
Industrialization isoneofthe components ofcomprehensive
development andonewhich ties inclosely with other development policy
guidelines .Industrialization will therefore only play itspart fully
indevelopment asawhole ifitisnot considered inisolation "but
putinitsproper place inthat whole .There cantherefore "beno
question ofindustry "being chosen tothe exclusion ofother approaches
such asthecreation ofinfrastructure orthedevelopment ofagricul­
ture ;onthecontrary ,anappropriate "balance ofcomplementary
factors must "beachieved .
Neither will industrial cooperation ,important though itis,"be
theexclusive preoccupation ,"butoneofanumber ofcomponents of
cooperation "between developed anddeveloping countries .
Inthis ligfrt ,thefollowing concrete proposals deserve to "be
taken into consideration andcould well "beputforward bythe
Community .
Thefirst isconcerned with agricultural development ,The
preponderantly rural soci-economic structure ofthedeveloping
countries ,theparticularly unfavourable situation inwhich
traditional agriculture finds itself ,especially intheleast
developed countries ,thevital need tocreate jobs ,thedanger
ofcreating centres ofindustrial development which areoutward -
looking andisolated from thenational economy andthemany
ways inwhich agriculture andindustry complement each other

10
mean that rural development occupies avery important place .
However ,agricultural progress must begeared tonational and
regional industrial development ,and ,inparticular ,tothe
creation ofstorage capacity anddisposal facilities and to
theproduction offertilizers ,pesticides andagricultural
machinery andequipment .
The second isconcerned with stepping upthe industrial
effort and involves thedevelopment ofsmall and medium-sized
manufacturing firms .Therole ofthese moderately –sized
indigenous firms inthe socio-economic development process
isaconsiderable one .However ,theobstacles areparticu­
larly numerous anddifficult toovercome and ingeneral the
funds needed are ofless importance than the contributions of
technical ormanagement know–how that arerequired .
This field ofaction has sofar attracted neither the
interest itdeserves nor ,asaresult ,theachievements hoped
for ,under either thedeveloping countries *development poli­
cies orthedeveloped countries *cooperation policies .
Industrial cooperation must therefore attempt tosingle
out the forms offinancial and technical assistance which are
best recommended forpromoting the creation and expansion of
small andmedium-sized firms and most likely toreceive contri­
butions from outside .Such action ,which must often becarried
outinanintegrated fashion ,includes thefinancing ofindus­
trial infrastructure (industrial estates ,forexample ),the
implementation ofadequate basic andadvanced vocational
training programmes ,theorganization offinancial assistance
anddevelopment oftechniques appropriate tothe institutions
that look after the interests ofthe small and medium-sized
firms andtothe organizations supplying specialized credit
for the small andmedium-sized industries inthedeveloping
countries ,andtheencouragement ofcontacts between these
industries inboth developed anddeveloping countries by
setting uptheappropriate machinery andmaking certain finan­
cial aid available .
2.Aselective approach todevelopment cooperation
Diversity inindustrial cooperation policies isessential owing
tothe great variety ofpractical situations andthecorresponding
economic policies .
There isofcourse noneed toillustrate thediversity of
geographical ,climatic ,demographic ,economic andsocial conditions
which exists between countries that differ widely insize andhave
asmaller orgreater amount ofresources available . Itis.however .

11.
useful to "bear inmind ,that recent economic developments have helped
tocreate even greater differences "between thedeveloping countries
andtowiden thegapbetween ,onthe onehand ,those which have oil
orcertain scarce rawmaterials andwhich nolonger needed financial
aid-ornotasamatter ofpriority atleast –butamong which the
opportunities forindustrial development arenevertheless very un­
evenly shared and ,ontheother hand ,thedeveloping countries which
donotproduce these priveleged resources ,which areinsome cases
very unfavourably affected bythepresent economic situation and
are more than ever inneed offinancial aid onfavourable terms .
Astothefundamental choices made bythese countries asregards
their development policies ,itwill beemphasized that each country
isresponsible forchoosing itsstrategy and industrialization
policy .Hence thedifferent ideas held bythevarious States on
therespective roles ofthepublic andprivate sectors ,sectoral
andregional priorities ,recourse totheappropriate technology ,
etc .Cooperation isonly possible ifthefundamental guidelines
ofthedeveloping countries *industrial development policy are
followed totheletter ..
This being so,itisclear that there isnoonemodel for
industrial development nor ,consequently ,forindustrial cooperar -
tion .
3.Acomprehensive view andimplementation ofindustrial coopera­
tion
Thecomplexity andextreme diversity ofspecific industrializa­
tion problems are such that industrial cooperation will have tohave
recourse ,according tocircumstances andintheright measure ,toa
whole range ofinstruments connected ,asappropriate ,with financial
cooperation (both public andprivate )inawide variety offorms ,
technological cooperation involving equally diverse methods ,comm­
ercial cooperation (tariff policy ,non–tariff barriers ,trade promo­
tion )andsupporting policies (incentives ,guidance ,etc.,)or
adjustment arrangements .Moreover ,industrialization brings into

12.
play various production factors (inputs ):rawmaterials ,energy ,labour ,
technology ,andequipment . Itisapplied ineconomic and social infra­
structure inthewidest sense aswell asir.industrial projects them­
selves *
Adevelopment aidpolicy which confines itself tousing thedirect
instruments oftraditional financial and technical assistance istherefore
inappropriate for industrial cooperation .Industrial cooperation must be
comprehensive ,bringing together ,bymeans ofhighly flexible procedures ,
very different partners andmaking use ,byharmonizing thepoints they have
incommon ,ofthewhole range ofinstruments which itistohave avail­
able .
Aparticularly important instrument ofindustrial cooperation
istrade cooperation ,theaim ofwhich istohelp developing countries
obtain the external markets required bysome oftheir export-orient -
edindustries .
Inthis respect thegeneralized preferences scheme specifically
aims toimprove the prospects ofthedeveloping countries asawhole .
Itiscertainly oneofthe most important contributions which the
Community canmake inthe field ofcommercial policy toencourage
thedeveloping countries' industrialization .The liberalization
oftrade onapreferential basis one ofthedemands towhich those
countries attach the greatest importance .The text presented by
the Group of77isclear proof ofthis .The Community has already
taken aposition which isahead ofitstime onthis subject and
which should bemaintained anddeveloped . Ithas always stated
that thegeneralized preferences scheme isnot fixed once andfor all
but canbeimproved inthe light ofexperience and specific request
from thebeneficiary countries .Onthis matter theCouncil must
hold athorough debate atpolitical level onthe objectives tobe
achieved byapplying the scheme .Atthe Lima Conference ,the
Community should support theGroup of77®srequests forbetter app­
lication ofthe scheme and stress the need for all industrialized
countries toapply it.Indoing this ,itmust clearly emphasize
the advantages the scheme holds for developing countries over
concessions that would begranted erga omnes onamultilateral basis
within theframework oftrade negotiations .
Beyond thefield oftariff measures ,further efforts should be
made tophase outnon–tariff barriers ,including thequant itiative
restrictions still applied todeveloping countries .

13.
Trade promotion isanother measure needed foropening upthemar­
kets ofthe industrialized countries . Itconsists ofaseries of
active measures ranging from informing thedeveloping countries of
national regulations tohelp them meet their requirements ,to
market surveys andparticipation atspecialized fairs andexhibi­
tions .
Theadoption laytheCouncil atitssession of30April 1974 .of
aresolution onpromoting developing countries' exports showed that
theCommunity hasrecognized theimportance oftaking measures in
this field tohelp increase those countries' exports .Inparticu­
lar ,ithasbeen pointed outthat ,attherequest ofthedeveloping
countries ,theCommunity could finance andimplement additional
specific technical assistance measures tohelp those countries improve
their exports .TheCommunity istherefore intheprocess ofdeve­
loping trade promotion schemes bilaterally with various developing
countries orregionally integrated blocs among thedeveloping coun­
tries .
AtLima theCommunity could draw attention toitsactivities in
this field andstate itsreadiness todevelop them inaccordance with
specific requests made bythedeveloping countries .
4.Concerted international cooperation
Intheprofoundly altered current international economic situation ,
thedeveloping countries' desire for industrial development demands new
forms ofinternational economic relations which should bematched byanew
conception ofinternational cooperation .Now that the fact ofinter­
dependence hasbeen recognized ,relations should beestablished less and
less inanatmosphere ofconflict between essentially differing interests
andmore and more inone ofcooperation between fundamentally converging
interests inthemedium and long term .
Industrial cooperation isthevery area where atrue partnership can
and must beestablished between developed anddeveloping countries .More
than anyother form ofcollaboration ,itrequires regular exchanges of
information andacontinuous dialogue between thevarious partners in
development .These exchanges ofinformation andcontacts ,which must be
carried outandmade with maximum flexibility ,areprovided with anideal
framework intheform of medium-term (bilateral orregional group )agree­
ments concluded between thedeveloped and thedeveloping countries .

14.
This contractual framework guarantees thevital continuity ofindustrial
cooperation relations ,information exchanges andcontacts inparticular ,
andensures that consultations "between thepartners cantake place under
thebest possible conditions .
Since what isinvolved istheestablishment ofgenuine relations
"between partners inajoint undertaking which are "both effective and
efficient ,therole andthevital collaboration required ofthefirms
concerned must bemade clear .
Incountries with market economies therole ofthepublic auth­
orities inindustrial cooperation isinfact less important than that
offirms andindividuals .Industrial cooperation inthose countries
isusually theprovince offirms andindividuals ,whether inthepublic
ortheprivate sector :manufacturers ,bankers ,suppliers ofservices ,
brokers ,etc .They alone areable tocarry outindustrial projects ,
ensure that therequisite knowhow istransferred onacontinuous
basis ,provide thenecessary technical andmanagement expertise and
guarantee the outlets andthetransport andmarketing facilities which
are vital .
The concrete results ofthe industrial cooperation ofcountries
with market economies will beall the more substantial for the fact
that ithasbeen possible tocount ontheassistance ofboth public
andprivate firms inavariety offorms ,ofwhich capital investment
hasdoubtless never been ,andcertainly nolonger isthemost impor­
tant .
Those developing countries which intend toenlist thehelp of
professionals must therefore involve them inindustrial cooperation ;
this does not ofcourse mean that thematter should beplaced entirely
intheir hands orthat the State does nothave amajor role toplay
independently ofthefirms orinconjunction with them .Butthey
must bekept informed ,meetings must beheld with them andthey must
begiven incentives toprovide assistance –inshort ,they must be
guided .They must also bereassured ,andtheimportance oftheafter
all essential question ofthewelcome extended toforeign promoters
andtheattitude tothem once they areengaged intheir activities
cannot bestressed enough .This isboth thequid proquoandthe
sine quanon "ofeffective industrial cooperation .Thedeveloping
countries must realize that itisinthegreater interests ofboth
parties forthefirms tobeguaranteed stable and secure working
conditions than tobemade even very generous concessions atthe out­
set .Bydoing this ,thedeveloping countries innowayabandon
either their political options orthepossibility ofapublic take­
over ,provided this isdone with therequisite fairness .However ,
', .itgoes without saying that outside firms must conform strictly tothe
i development aims andpriorities ofthehost country andtake full
account ofxts mterests .

15.
Thedeveloped countries ,fortheir part ,shquld ensure that
inaddition toaction taken bythem inthefinancial ,trade or
technical assistance fields (which candoagreat deal toencour­
agefirms ,albeit indirectly )they take appropriate ,coordinated
measures -effective andoften relatively inexpensive -involving
information ,contacts ,promotion andvarious types ofincentives
andsupport fortheir operations ,particularly asregards taxation
andtheguaranteeing ofinvestments against non-commercial risks .
5.Adynamic approach toindustrial cooperation
Thepace ofchange inindustry is -such that reasoning instatic terms
along thelines ofaredistribution ofexisting capacities andtransfers
ofindustry tothebenefit ofsome andthedetriment ofothers isinappro­
priate andcanonly lead tofruitless conflict .
Aforward-looking approach should instead beadopted which takes
account ofgeneral growth inthelonger term whereby afairer distribution
ofworld industry would berealized ,asisinfact thecase ,byagradual
shift intrends -thecreation ,extension ortransformation ofindustrial
units -andbytheexistence ofdiffering rates ofgrowth asbetween
industrialized anddeveloping countries .
Itisquite legitimate ,therefore ,tomention thebenefits which both
sides would reap from progressive relocation ofindustry .This would be
inthe interests ofthedeveloped countries both interms oftraditional
comparative advantages andalso because itwould goaconsiderable way
towards solving their social andpolitical problems inthefields ofimmi­
gration ,space andenvironment .These medium -andlong-term advantages
should outwiegh theimmediate drawbacks oftheadjustments which they
necessitate .
6.Anovel conception ofindustrial cooperation
Aforward-looking approach totheproblems ofindustrialization means
calling into question thetraditional idea ofinvestment bygiving ita
more appropriate place inindustrial cooperation ,working outmeans of

financing andcooperation which arebetter adapted topresent needs and
providing foranysurplus capital tobeused toaccelerate theindustri­
alization ofthedeveloping countries .
Thedeveloping countries have anincreasing tendency tofinance as
much oftheir industrial development aspossible from their ownnational
resources .Theobjective advantages ofnational financing ,thepolitical
determination ofthedeveloping countries touse it,andtogive state
action animportant place ,plus thereluctance ofprivate capital to
invest overseas mean that this tendency isencouraged .Contributions
from abroad remain vital ,however ,atleast asanaddition todomestic
action andwhere they arecoupled with contributions inthefields of
technology ,management andmarketing .
Inthis context the most important point would seem tobetowork
outnew means offinancing andtechnical cooperation which aremore diver­
sified ,more flexible andbetter adapted tothespecial ,changing demands
ofinternational industrial cooperation .
Toanswer this need there already exists awide range ofmeans other
than traditional direct investment ,inmany cases involving thepublic
authorities .Examples aretheadvance financing ofproject studies ,the
useoflocal financial institutions asagencies ,theacquisition ofholdings
byinvestment companies ,theleasing ofindustrial plant andlong-term
management contracts .These means should befurther developed ,made better
known andfully utilized .
Linking ordinary bank loans orcredit onspecial terms tolong-term
commercial contracts could beenvisaged forthefuture .

17-
Finally ,theappearance ofsurplus financial resources incertain
exceptionally well–endowed developing countries should provide food for
thought onnew types ofagreements which could accelerate the industri­
alization ofthedeveloping countries .They would betripartite agree­
ments linking such surplus finance –possibly boosted bycapital from the
developed countries and thehost developing countries -tocontributions
oftechnology ,management andtraining facilities from thedeveloped
countries andtotherawmaterials and labour resources ofthedeveloping
countries which will behost tothenew industrial development .Inthis
field ,anappropriate institutional structure andfinancial framework must
besetupand joint guarantee procedures must beworked outtofacilitate
these industrial cooperation schemes ,which will beprofitable toeach of
theparties concerned .

18.
Community position ontheGroup of77proposals
TheCommunity hasdeclared itsintention oftaking apositive stance
attheLima Conference .Itshould therefore adopt aconstructive attitude
towards theGroup of77proposals .
Itmight heuseful fortheCommunity topoint outthat most ofthe
proposals contained intheGroup of77'stext areperfectly acceptable
andinclude some excellent ones .TheCommunity isable toaccomodate the
Group of77'sexplicit desire byadopting asabasis their draft text and
endeavouring asfaraspossible toaccept itasitstands ,proposing only
essential andspecific amendments (l).
Such aCommunity position ,ifclearly expressed ,would nodoubt be
well received andlikely tolead tothecompromise which theCommunity
should seek topromote .Itwould mean that theCommunity would notbe
blamed forhaving contributed tothefailure oftheConference inthe
event ofaclash inLima .
Itisimportant toremember ,however ,that avery large number of
theproposals intheGroup of77'stexte areonly remotely related to
industrialization andbelong tothesphere ofother international confe­
rences orinstitutions ,while itisprecisely onthese topics that the
most serious disagreements occur .TheConference ofTJNIDO ,aUnited
Nations body ,isclearly nottheproper place forsettling questions which
arebeing studied ordiscussed byother United Nations bodies atthesame
time .
(l)This analysis oftheGroupe of77'spreparatory document -Preamble ,
Declaration ofprinciple andProgramme ofAction -deals only with
texts which areunacceptable asthey stand andwhich weareproposing
toamend .Itisbased ontheassumption that alltheother proposals
areacceptable totheCommunity .

19.
A.Specificindustrialization problemsofthedevelopingcountries
1.Quantitative aims(Déclaration,paragraph6)
ThedevelopingcountrieshavetakenupandexpandedontheUNXDO
Secretariat'sproposaltoquantifythedevelopingcountries *industrial
development aims.Thetargetfiguresfortheyear2000areexpressed
asapercentageofworldindustrialproduction(25ofthetotaltas
againstthe20$proposed "bytheUKIDOSecretariat)andintermsofrate
ofindustrialgrowth(fargreaterthanthe8%recommendedinthe
International DevelopmentStrategy),
Theonlyjustification forsuchquantification ispolitical ;
itactsasastimulusforcooperation.Ontheotherhand,pastexpe­
rience–extremelyunsatisfactory fromtheangleoftargetfigures-
has"bredfrustationanddisappointment .
Itwillhethoughtthatthereisadangerthatanyfigure,even
ifitisintendedonlyasaguideattheoutset,mayassumeavalue
ofitsownandbecome "bythisveryfactasourceofmisunderstandings
andcomplications intheconsultations andofcumulativeerrorsat
allthelaterstagesofreflectionandstudies.
Itmay"beaskedwhetheralong-termtheoreticalprojectionis
realisticandwhetheritisnotmoreunfeasiblethaneverinthe
presentworldeconomicsituation.
Itwillaboveallbeemphasizedthatanobjectiveexpressedin
theformofagreatershareofworldindustrialproductionforthe
developingcountries,subjecttothefactthatthecountriesconcerned
maynotalldevelopinthesameway,doesnottakeaccountofthereal
aim-namelyanactualincreaseinthedevelopingcountries'industrial
production.
Ifaquantification mustbemade,theCommunitycouldnodoubt
acceptrealistictargetfigures,carefullycalculatedbutexpressed

20
exclusivelyintheformofratesofindustrialgrowthinthedeveloping
countries(l).Theprogressmadetowardsattainingtheseaimscouldbe
examinedperiodically withintheframeworkofUUXDO.
2.Transferofindustrialactivitiesandadjustmentprogrammes (Decla­
ration,paragraph55PlanofAction,ChapterA,section2,para­
graph(c)and(d)
Underthisheadingaregroupedthedevelopingcountries'proposals
forachievinga"rational,justandequitable"international divisionof
labourbymeansofanticipatory adjustmentprogrammesaimedatassisting
developedcountries *firmswhichhavebecomeinefficientorunprofitable
orbothtoceaseproduction andtransfertheiractivitiestothedeve­
lopingcountries,thusavoidingthecreationinthedevelopedcountries
offreshproductivecapacityofthistype.
Thisapproachisoversimplified andcanhardlybeacceptedbythe
industrialized countries(2).
Thetransferofcertainproductioncapacitiesonaninternational
scale,inparticulartothedevelopingcountries,isanongoingprocess
andonethatiscertaintoaccelerateinthecomingyears.
TheCommunityhasonmanyoccasionsdeclareditswillingnessto
promotetheindustrialization ofthedevelopingcountries.Itmakesa
practicalcontribution boththoughfinancialandtechnicalcooperation
underassociationorcooperationagreementsandbyopeningitsmarket
tothedevelopingcountries'exportsofmanufactures undersuchagreements
oritsgeneralizedpreferences system.TheCommunityisobviouslyaware
oftheimplicationsforitsownindustrialstructureofitsindustrial
cooperation andinparticulartheprogressive openingofitsmarket,
anditispreparedtofaceuptothem.
(1)Resolution3306(XXIX)adoptedbytheUnitedNationsGeneralAssembly
on14December1974(1^9votesfor,0againstwith3abstentions sUSA,
UK,FRG)envisagestargetfigurestoincreasesubstantially thedeve­
lopingcountries *shareofworldindustrialproduction.
(2)Amoresubtletext,whichhasbeenacceptedbytheCommunity,isthatof
Article8oftheCharter.

21.
TheCommunityisthereforealreadyworkingtobringaboutrelocation,
whichisacceptabletoitinprinciple.Caremustbetaken,however,
toensurethatthetextdoesnotappeartoimplythatrelocation maytake
placeundercompulsionandonthebasisofprogrammesdrawnupinadvance.
Withregardtoadjustmentprogrammes,theCommunitydoesnotat
presenthaveacommonadjustmentprogramme,althoughadjustmentprogrammes
existatnationallevelinvariousMemberStates.Itwouldbeadvisable
forsuchprogrammestobeintegratedatCommunitylevelthroughthe
coordinatedimplementation ofinternalstructuralpolicymeasures(such
asintheregionalandsocialspheres)andofthepolicyofcooperation
withthedevelopingcountries.Butitwouldbeprematuretomaketoo
muchofthisandtheCommunityisunabletoenterintocommitments onthe
implementation ofadjustmentmeasures.Amendmentsshouldthereforebe
soughtwhichmakethetextlessbinding.
3.Regulation andcontrolofforeigninvestment andthetransferof -t
technology (PlanofAction,ChapterA,section1,paragraph(l)
TheGroupof77proposestostrengthenregulationandcontrolin
thisfieldaspartofthemeasuresconcerningthedevelopingcountries.
Thesebeingmeasureswhichthedevelopingcountrieshavetotake
themselvesastheyinvolvetheirnationalsovereignty,theCommunity
couldconfineitselftoproposingtheinclusionoftheconceptsofequity
andstability.
4.Tradepolicymatters
TheCommunityisabletoadoptamostconstructive positionhere,
givenitspreviousactivitiesinthiscontext(generalizedreferences,
multilateralnegotiations).MostoftheGroupof77requestsarethere­
foreacceptable.Therearehowevercertainspecificpointswichrequire
modification andinrespectofwhichamendmentsshouldbesubmitted.
ThesepointswereraisedinthestatementmadeonbehalfoftheCommunity
tothePreparatory Committeeandareasfollowsj

22.
Eliminationofnon-tariffbarriersonapreferentialbasis(Planof
action,chapterA,section2fparagraph(a)
TheCommunityispreparedtoexaminethisprobleminspecificcasesbut
withintheframeworkofthemultilateral negotiations underGATTand,
therefore,onanon–prefererrtialbasis.
Elimination ofprogressivetariffsforprocessedproductsonaprefe­
rentialbasis(seereferenceabove)
Thereisalreadypracticalsolutiontothisproblemintheformofthe
preferences systemanditshouldnot,therefore,beraisedinthetext.
Adoptionofmarketsharingprogrammes(Planofaction,chapterA,
section2,paragraph(b)
Theconceptofmarketsharingisunacceptable inthecontextofexisting
tradearrangements .Marketsharingisachievedinpracticebytrade
policiesandinparticularbythesystemofpreferences.Aproposal
couldbemadetoamendthetextsoastoprovideforimprovedmarket
accessforthedevelopingcountries'products.
Elimination ofnon-tariffbarrierswithintheframeworkofpreferences
(Planofaction,chapterC,paragraph(a)
Thepresentwordingisunacceptable ;referencecouldbemadeto
improvingtheconditionsofapplication.
Principleofpreferential treatmentwithintheframeworkofthemulti­
lateralnegotiationsunderGATT(Planofaction,chapterC,paragraph(b)
ThisprincipleisnotapplicableinthecontextofGATT;thepassages
concerningthedevelopingcountriesintheTokyoDeclarationcouldbe
usedhere.

–Measures toprevent production ofsynthetic substitutes (Plan ofaction ,
chapter A,section 2,paragraph (h),part ofchapter C,paragraph (q)
Theprinciple ofrestricting theproduction ofsynthetic substitutes
isunacceptable .The concept of"better competitive position "for
natural resources ,which hasalready been accepted and isbeing discus­
sedbyUNCTAD ,should beintroduced .
–Strengthening ofproducers *associations (Declaration ,paragraph 19,
andPlan ofaction ,chapter B,section 1,paragraph (b)
Most Member States voted against thearticle oftheCharter which deals
with this question (article 5)«Amendments should besought aimed at
bringing such associations within theframework ofinternational
cooperation andequitable relations between producers andconsumers .
This wasthetenor ofthe reservation entered onbehalf oftheCommunity
attheUnited Nations General Assembly when theDeclaration and Progrsjnme
ofAction foraNewInternational Economic Order were adopted byaconsensus
ofopinion (l).
–Right ofthedeveloping countries toprovide export assistance (Plan of
action ,chapter C,paragraph (c);same idea expressed inchapter A,
paragraph (g)
This isanextremely delicate matter ,andthewhole question ofexport
subsidies will beoneofthemajor issues inthemultilateral negotia­
tions under GATT inrespect ofnon-tariff barriers .Itis,therefore ,
impossible toaccept that thedeveloping countries should have the
unconditional right toprovide whatever kind ofexport assistance they
maychoose fortheir processed products .Atbest theCommunity could
beflexible intheapplication ofpossible safeguard measures where
developing countries areconcerned ,butonly after negotiations under
GATT thewhole set ofmeasures tobeadopted internationally fordealing
with this problem .Thedrafting ofthetwoparagraphs must take this
state ofaffaires into account and should atall events avoid sanction­
ingwholesale exceptions forthedeveloping countries inthis sphere .
(l)"(TheCommunity )also wishes tospecify that itconsiders therole of
producers' associations intheway itwasdefined intheDeclaration
concerning thesetting upofaN6wInternational Economic Order ".

24.
-Needfor"prior"consultations incasesofmodification ofthe"standatill"
(Planofaction,chapterA,section2,paragraph(a)
Theprincipleof"prior"consultations isunacceptable sincetheimporting
countriesmust"befreetoadoptmeasuresrapidlywheretheyarerequired
inexceptionalcasesarisingfromacrisis.TheCommunityshouldkeep
totheprocedureslaiddown"byGATTinthismatter.
-Establishment ofalinkbetweenthepricesoftheexportsandimportsof
thedevelopingcountries(Preamble,paragraph19)
Theunderlyingideaoftheproposedtextisquiteclearlypriceindexing.
ThismatterwillhavetobediscussedbytheUNCTADCommitteeoncommo­
dities,butgivenitsdifficultyandcomplexitythereisnopossibility
ofaquicksolutionbeingfound.Acompromisetext,basedontheCommu­
nity'sdeclarationattheU.N.GeneralAssembly(l),couldrefertothe
importanceofseekingafairbalancebetweenthepricesofgoodsexported
andthoseimportedbythedevelopingcountrieswhichwouldbeprofitable
fortheproducersandfairtotheconsumers.
5.Establishment ofanIndustrialDevelopment Fund(Planofaction,
chapterC,paragraph(g) y
y
Theestablishment ofthisFundwasthesubjectofResolution3307
(XXIX),whichwasadoptedbyaconsensusof*>opinionattheGeneralAssembly
on14November1974*ThisResolutionasksthattheestablishment ofthe
FundbestudiedattheLimaConference.TheGroupeof77*stextenvisages
theestablishment ofaNeutralInternational Fund,tobefinancedbythose
developingcountrieswithavailableresourcesandbyatleastequalcontri­
butionsfromthedevelopedcountries.Criticalattentionshouldbe
devotedtothequestionofwhethertheestablishment oftheFundis
advisable,particularly fromanoverallpointofviewtakingintoaccount
theproliferation ofinternational funds,conflictingwithandin
connectionwiththeFundinquestiontherequestsfromthedeveloping
countriesforincreasedfinancialaid,andtheenlargementoftheUNEDO
budget.
(l)"TheEuropeanEconomicCommunityisoftheopinionthatafairbalance
mustbesoughtbetweenthepricesofgoodsexportedandthoseimported
bythedevelopingcountries;itconsiders,however,thatitwouldbe
difficulttoestablishaformallinkbetweenthetwo".

25
Asregards thesetting upofanInternational Fund forAgricultural
Development ,theexperience oftheWorld Pood Conference shows that it
would bedifficult tooppose the establishment ofsuch afund since the
oil-producing countries areprepared totake theinitiative "byproposing
andhelping tofinance it.Inthese circumstances ,thetactical expe­
diency ofoutright opposition totheestablishment oftheFund isopen
toquestion ;ilwould appear more appropriate toadopt amore flexible
approach byproposing amendments tothe Group of77'stext ,specifying
inparticular that theFund must beopen tovoluntary contributions
from allthe countries intending toparticipate .
Asregards therepresentation ofcountries inthis Fund ,itmight
merely bepointed outthat ,asinthe case oftheAgricultural Development
Fund ,afair allocation ofseats would have tobeensured .However ,
more details should berequested onthescope ofparagraph (h)ofthe
same Chapter ,which calls forthesetting upoffinancial mechanisms of
industrial development .Itmight beasked whether theprovisions of
this paragraph donot ,infact ,duplicate theestablishment ofaFund .
6.System ofcontinuous negotiations andconsultations (Declaration ,
paragraph 4)
The Group of77'stext mentions this problem only inparagraph 4of
theDeclaration andwithout specifying the role orscope ofsuch asystem .
Itispossible that thedeveloping countries will return tothis question
inChapter E,"Institutional Mechanism ",which hasnotyetbeen drawn up.
Theidea wasoriginally mooted inUNIDO Secretariat document ID/B/C.3/27»
TheSecretariat envisages acomplex consultation system atthree levels :
multilateral ,regional andsectorial .Such consultations would facilitate
inparticular the coordination ofmeasures tobetaken inthesphere of
industrial development ,including consultations ontherelocation of
industrial capacity .

26.
Thecreationofsocumbersomeasystem,andonewhichcouldbeinter­
pretedasamechanismfornegotiations betweenthedevelopedanddeveloping
countriesonindustrialrelocation,wouldappearinadvisable andeven
ineffective.TheCommunitycoulddeclareitselfinfavourofimplementing
withintheframeworkofUNIDOprocedureslikelytofosterregularinforma­
tionexchangesandconsultations betweenbothsidesofindustryandall
partiesconcernedbyindustrialdevelopment.ThetextsubmittedbyGroupB
andrecordedinChapterC,item56,paragraph(b),(c)and(d)ofthe
draftPlanofAction,couldbeproposedtotheGroupof77asastarting
point.
7.Institutional questionsconcerning UNIDO(Planofaction,chapterE)
Accordingtounofficialinformation whichhasnotbeenconfirmed,
theGroupof77havepreparedadraftChapterEtotheirdraftDeclaration ;
itdealswiththerole,functionsandstatusofUNIDO.Accordingtothis
informationtheGroupof77arerecommending :
–greaterbudgetary,financialandadministrative independenceforUNIDO;
–aninstitutional basisforitsGeneralConference,tobeheldevery3
or4years;
–thestrengthening oftheirrepresentation ontheIndustrialDevelopment
Board(40outof60seatsinsteadof25outof45)»i*1Secretariat
andamongtheconsultants ;
–theestablishment ofanIndustrialDevelopmentFund(aswellasaNeutral
International Fund?);
–thatUNIDOhandlealargershareofUNDP'sresources.
SincetheGroupof77nowappearstohaveabandonedtheideaof
transforming UNIDOintoaspecialized agency,itwouldappearthatthe
greaterflexibilityproposedinbudgetary,financialandadministrative
matterscouldbelargelyaccepted,althoughitisclearthatthese
measureswoulddolittletoremedythehandicapsfromwhichUNIDOsuffers
(inadequatedemarcationofpowersandresponsibilities ,lackofcontrol
overtheorganization,unwieldiness andoperationalinefficiency).

27.
v
TheproposalthattheGeneralConferenoeshouldmeetperiodically would
provideatleastapartialanswertotheproposaltosetupaconsultation
mechanism.Thequestionofthedevelopingcountries'representation on
theBoardandintheSecretariat couldbesettled "byfollowingthe
exampleofUNCTAD.Theestablishment oftheIndustrialFundhasalready
beendiscussed.Theproposalconcerning UNDPcould,atthemost,be
expressedasadiplomaticallu wordedrequestforwardeddirecttoUNDPitself.
TheGroupof77shouldlogically~bemoreanxioustoobtainconsensus
inaspherewhereresourcesprovidedbythedevelopedcountriesplaya
decisivepart.Thisconsideration mightinclinethemtomakecertain
concessionsinotherfields.Itwouldinanyeventbedesirableforthe
MemberStatestoharmonizetheirpositionsascloselyaspossiblewhen
theGroupof77*sdefinitiveproposalsareknownwithcertainty,thatis
aftertheirmeetinginAlgiers.
B.MattersforwhichotherUnitedNationsbodiesareresponsible
Theseareproblemsofageneralnaturewhichareonthewholeonly
remotelyrelatedtothespecificproblemsofindustrialization .These
problemsarewellknownandhavebeendiscussedindetailintheGenral
AssemblyandotherUnitedNationsbodies.Thesediscussionsareinmany
casesstillgoingoninUNCTAD,ECOSOC,theInternational MonetaryFund
andotherspecializedinstitutions oninstructions fromtheGeneral
Assembly.
Aninitialreactionwouldbetopointouttothedevelopingcountries
thatsuchproblemscannotbesolvedwithintheframeworkofaconference
onindustrialization .Thesemattershavenodirectconnectionwith
industrialization anddecisionstakenbysuchaconferencecouldprejudice
possiblesolutionsemergingfromdiscussionstakingplacewithinother
UnitedNationsbodies,ofwhichUNIDOisbutone. /
TheGroupof77madeitclearinVienna,however,thatitconsiders
itessentialthatthismatterbetakenintoconsideration whenthenew

28.
textsaredrawnup.Itseemsrealistictoassumethattherewill"be
nowayofavoidingdiscussionofit.Accordingly,effortsshouldbe
made,toensure,bydrawingupuniversallyacceptableamendments,that
thesetextsdonotprejudicefuturesolutionsandareinlinewithdeci­
sionsacceptedinothercontextss^agMbheMemberStates.Theguiding
principleshouldthereforebetoattempt^toadhereascloselyaspossible
totheGroupof77'stext,whileproposingsuchamendmentsasareconsidered
necessary.
-Naturalresourcesandtherightofnationalization (Declaration,para­
graph8and9)
ThismatterwasdiscussedatlengthwhentheCarterwasadoptedandit
wasnotpossibleatthatstagetosecureareasonablecompromisefor
theindustrialized countries.TherecanbenochangeintheCommunity
positioninrelationtothepositionadoptedsorecently.Itwould
appearappropriate,therefore,toreturntotheamendmentssubmitted
duringthediscussionandtoproposethemoncemoreasamendmentsto
theGroupof77'stexts.
-Liftingofthereservations ontheDeclaration andthePlanofAction
foraNewInternational EconomicOrder,adoptedbyconsensusattheSixth
SpecialSessionoftheGeneralAssembly(Declaration,paragraph14)
ThisrequestbytheGroupof77wouldappearquiteunacceptable atpresent.
Thereservations enteredbeingstillvalid,onesolutionwouldbetodraw
upanamendmentbasedontheideathattheCommunityisinfavourof
thecontinuation intheOTofadialoguewiththedevelopingcountries
aimedatseekingagreementonthepointsdisputed,sincesuchagreement
wouldfacilitatetheimplementation ofthesetextsbywideningthearea
ofconsensus.
-Reformoftheinternational monetarysystem(Declaration,paragraph16;
PlanofAction,chapterC,paragraph(i),andchapterD,paragraph(f)
Thisischieflyaquestionofgreaterparticipation bythedeveloping
countriesinthedecisionstobetakenwithintheframeworkofthereform

29.
oftheinternational monetarysystem,and,italsoinvolvestheuseof
specialdrawingrightstofinanceindustrialization inthosecountries.
Thismatteris"beingdiscussed "bytheInternational MonetaryFundand
hasalsobeendiscussed "byECCSOC.TheBoardofGovernorsoftheInter­
nationalMonetaryFundandIBRDhassetupajointMinisterial Committee
withthetaskofstudyingthetransferofrealresourcestothe
developingcountries.Thedesisionsto"betakeninthatcontextmust
not,therefore,heprejudiced "bythetextswhichwill"beadoptedinLima*
Hereagain,awaymast"befound,therefore,ofexpressingthedesire
thattheworkbeingdonebytheInternational MonetaryFundshouldtake
accountoftheinterestsofthedevelopingcountries.Abasisforthis
couldbethetextoftheResolutionadoptedbyconsensusintheGeneral
AssemblyinDecember1974#
-Reductionofexpenditure onarmsandtheuseoftheresourcesthus
released,tofinanceindustrialization (Planofaction,ohapterC,
paragraph(f)
Althoughthequestionofdisarmement doesnotfallwithintheprovince
oftheCommunity,anexaminationofitfromthepointofviewofits
implicationsfordevelopmentaidrequirescoordination nonetheless ,and,
ifpossible,theadoptionbytheMemberStatesofacommonposition.
ThismatteriscoveredbyArticle15oftheCharteroftheEconomic
RightsandDutiesofStates,whichtheMemberStatesfoundunacceptable .
Theyallsupportedanamendmentforthedeletionofthetextinquestion.
Thisbeingso,theMemberStatesshouldproposethatanyreferenceto
disarmement shouldbedeleted.
-Transnational corporations (Preamble,paragraph11;Declaration,para­
graph15;Planofaction,chapterA,section2,paragraphg)andchapter
C,paragraphm)
TheGroupof77isasking,first,thatanInternational CodeofConduct
forTransnational Corporations beapprovedasamatterofurgencyand,
second,thatthedevelopedcountriesadoptmeasurestopreventsuch
corporations engaginginactivitiesprejudicialtodevelopment.

ItappearstobedifficultatthisstagefortheCommunitytogive
undertakings ofthiskind,particularly inviewoftheworktoheconti­
nuedonthissubjectwithintheframeworkofECC60C.
TheCommunitycouldputforwardamendmentsbasedonthetextofthe
ResolutionadoptedinthisconnectionbyconsensuswithinECOSOCon
11December1974»andontheamendmentproposedbytheMemberStates
toArticle2oftheCharter.
Implementation oftheInternational DevelopmentStrategy(Preamble,
paragraph4jDeclaration,paragraph3»Planofaction,ChapterB,
section1,paragraph(c)andChapterC,secondsentence)
TheGroupof77'stextrefersrepeatedlytotheimplementation ofthe
Strategy,linkedincertaincasessiththeProgrammeofActionforthe
MewInternational EconomicOrder.Althoughgeneralreferencestothe
Strategyintheforminwhichitwasadoptedareacceptabletothe
MemberStates(theirreservationswithregardtoithavingbeenrela­
tivelyslight),thesamecannotbesaidofthosetextswhichwould
requiregeneralrevisionoftheaimsoftheStrategyinthelightof
theProgrammeofAction.
CharteroftheEconomicRightsandDutiesofStates(Preamble,paragraph
20;Planofaction,ChapterP)
HoneoftheMemberStatesvotedinfavouroftheCharter;furthermore ,
alltheMemberStatesvotedagainstcertainarticles.Thisbeingso,
anyreferencetotheChartermustbeexaminedcriticallybyreference
tothepositionsadoptedbytheMemberStates.WhiletheCommunity
votedinfavourofcertainarticlesconsideredindividually ,itcannot
accepttheCharterasawholeasalegallybindingtext.Thisposition
mustbestoutlyupheld.Asaresultitisimpossibletoacceptthe
presentwordingofChapterPofthePlanofActionintheGroupof77's
text.Asastartingpointacounterproposal couldbebasedonthenotion
thatifitisdesiredtomaketheCharteratrulyeffectiveinstrument

31
for setting upanewsystem ofinternational economic relations itis
essential that fresh consultations beenvisaged inorder tosecure a
consensus ofopinion among allcountries .TheCommunity ,for itspart ,
isstill ready toopen such adialogue should thedeveloping countries
sodesire .
-International Code ofConduct onLiner Conferences (Plan ofAction ,
chapter C,paragraph (o)
This Code was adopted bymajority vote atthePlenipotentiaries Confe­
rence held on7April 1974 inGeneva within theframework ofUBCTAD .
Itisopen forsignature until 30June 1975 and .foraccession following
that date .TheMember States voted invarious ways (for :Germany ,
Belgium ,France ;against :Denmark ,United Kingdom ;abstentions :Italy ,
Netherlands ).TheCommission ispreparing fortheadoption ofacommon
position onratification .
Inthese circumstances itwould appear extremely difficult todetermine
aCommunity position onthis paragraph .Astarting point could bea
request fordeletion based onthe arguement that theadoption ofthe
Code isnotdirectly connected with the industrialization issue andthat
itshould notbeincluded inthetexts inquestion .
-Remnants offoreign and colonial domination and continuing neocolonialism
(Preamble ,paragraphs 10and11)
Theparagraph 10ofthe Group of77'stext hastaken over atext which
appeared inthe introductory part oftheDeclaration relating tothe
establishment ofaNewInternational Economic Order (paragraph 1,third
sentence ).Clearly asentence ofthis kind ,given itsrecriminatory tone ,
would notappear tobelong inatext which ought tobeacceptable toall
thecountries participating intheConference .However ,theGroup of77
could point tothefact that thesentence inquestion hadalready appeared
intheabove-mentioned Declaration andwasapproved byconsensus inthe
General Assembly .This being so,itwould seem that this sentence -
which appears moreover ,inthepreamble -could beaccepted iftheGroup
of77soinsists ,care being taken toensure that itcorresponds exactly
tothe sentence inthe Declaration .

32
Withregard,toparagraph11,whichreferstocontinuingneocolonialism
andtheinfringement bytransnational corporations oftheprincipleof
sovereignty ,thepresentwordingisunacceptable .
technologybemadeaccessiblebnderjustandfairconditions,withparti–
countnes :
anindustrialandtechnological databankbesetup;
theinternational conventions onpatentsandtrademarksbereviewed
withaviewtoassistingthedevelopingcountries ;
theInternational CodeonTransferofTechnologybeingpreparedat
UNCTADbeapprovedasrapidlyaspossible.
TheMemberStatesoftheCommunityagreedatthe14thSessionofthe
UMCTADCouncilinSeptember1974thatquestionsrelatingtotransfer
oftechnology,whichareofspecialinteresttotheCommunity,should
bethesubjectofclosecoordination andharmonization atCommunity
level.Thedetailsofimplementation ofsuchcoordination haverecently
beenworked,out. - •"–
Thefirstand.thirdjproposais by.theGroupof77shouldsimplybe
-amendedtosageguardtherightsofownersoftechnologyandreference
shouldbemadeto;theworkofUM3TAD.
Thesecondproposalshouldbemademorespecificinviewofthetotal
lackofdetailsonthedatabankwhichitisproposedtosetup
(function,structure,organization andresources).Transferoftechnology (PlanofAction,chapterC,section1,paragraphs
(j)»(k),(1)and(n)
TheGroupof771Sproposingthats
cularaccountbeingtakenoftlmspecificneedsofthedevelopingS
Thefourthproposalseemstobethemostsensitive.TheMemberStates
areagreedonthenecessityofaccelerating thetransferoftechnology
tothedevelopingcountriesunderfairconditions (seeCharter,Article

33
13fand.AGPnegotiations onindustrialcooperation).Theadoptionof
aCodehas"beencontemplated byUHCTAD,"butsomeMemberStatesentered,
deepreservations onthedraftputforwardbythatbody(l).Thereisa
realdangerofthepoliticalsideofthedebatebecomingdominantand
therewouldappeartobeverylittlepossibilityatpresentofdetailed
andobjectivediscussion.TheCommunity'sreservations willnodoubt
bepromptedbytheinadequacyofthepreliminarystudies,leadingto
hastyconclusions andexcessivedemandsonthepartofthedeveloping
countries,particularly sincesomeoftheproposedmeasureslieoutside
thewesterncountries'politicalandlegalpowersofimplementation ,
andalsobyourreluctancetoacceptanycodewhichwouldbebindingin
termsofinternational law.
(l)Thevotewasasfollowssagainst:Germany,UnitedKingdom;for:
Belgium,Netherlands ;abstentions :Prance,Italy.

ΑΝΝΕΧ
rc»~i ^^
HSMARK ONTHE PREPARATION OPTHE ANNEX
Tohelp readers toidentify theamendments proposed ,theGroup
of77*stext has "been taken asa "basis .Wherever awork orphrase seemed
unacceptable ,ithasbeen placed insquare "brackets £~/. Thewords or
phrases proposed asanewdraft have "been underlined .Paragraphs which
areacceptable asthey stand have notbeen reproduced andtheword "un­
changed "appears after thenumber oftheparagraph .

BJMLFTDECLARATION ANDPLANOPACTIONON
INDUSTRIAL DEVELOPMENT ANDCO-OPERATION
/"OPTHEGROUPOPSEVENTY-SEVEN_7
/"VIENNA,DECEMBER1914J
DECLARATION
1.Therepresentatives ofthe/"developing^countriestakingpartintheSecond
GeneralConferenceofUNIDO,meetinginLima/"ViennaastheGroupofSeventy-seven_7,
joinedbytheircommonaspirationsand"bytheidentity®ftheireconomicinterests,
proposetocontinuejoininghandsintheireffortstoachievesocialsaideconomic
development,peaceandprosperity.
2.(Unchanged)
3.(Unchanged)
4.RecallingGeneralAssemblyresolution3176(XXIIl),
5.(Unchanged)
6.Recognizingtheurgentneed/"toproceedwithradicaltransformation ofthe
structure®feconomicrelationsand"Jtoachievetheobjectiveofbringingaboutthe
establishment ofanewinternational economicorderbasedonequity,sovereignequality,
inter-dependence andco-operation ,inordertopermitthoroughgoing transformation of
thepresentstructureofeconomicrelations,
6.(deleted)
7.(deleted)
8.(deleted)
9.Consideringtheurgencyofundertakinga/~radical_7thoroughgoingtransforma­
tionofthestructureoftheworldeconomyandoflayingthefoundationofanewkind
ofinternational economicrelationswhichwouldcreatetheconditionsthatwouldmake
itpossibletobringaboutinternational economicco-operation basedonsovereign
equality,theright®fequality,justiceandequityfortheeconomicandsocialpro­
gressofthedevelopingcountriesinconformitywiththedeclaration andplanof
actionconcerningthesettingupofaNewInternational EconomicOrder,

-2-
10.Consideringfurtherthattheremainingvestigesofalienandcolonialdomina­
tion,foreignoccupation,racialdiscrimination ,apartheid,andnee-colonialism inall
itsformscontinuetobeamongthegreatestobstaclestethefullemancipation and
progressofthedevelopingcountriesandallthepeoplesinvolved,
11.Bearinginmindthat^~this_7thesituationofthedevelopingcountrieshas
becomeaggravated "bytheperpetuationofneo-colonialism andthe_7persistentand
markedtensionstowhichthepresentinternational economicsituationissubjected,
inparticular^~T©theseconsiderations mustbeaddedtheattitudeofsomedeveloped
countriesaswellastheunacceptable practicesofthetransnational corporations
thatinfringeintheprincipleofsovereignty ofdevelopingcountriesandtothat
mustbeadded_7theinflationaryincreaseintheimportcostsofdevelopingcountries;
andthepressuresexertedupontheirbalanceofpaymentsasaresultofheavyforeign
debtservicing,theaggravationoftheinternational monetarycrisis,andthetrans­
fersresultingfrom^"imposedbyj7privateinvestment.Thissituationisnotcon­
ducivetothespiritofthenewinternational economicorder.
12.Recognizing thefactthatproblemsofindustrialdevelopment indeveloping
countries^""donotlieentirelywhilemainlylyinginthosecountries,^~but
arealsocausedbjJalsodependonthepoliciesofthedevelopedcountriesandthat
^"withoutsignificantpolicyandstructuraladjustmentswithintheeconomiesofthe
developedcountries^theachievementoftheobjectiveseftheNewInternational
EconomicOrder£~wouldbeinseriousjeopardy_7couldbefacilitatedbyadjustments
oftheeconomicpoliciesandstructuresofdevelopedcountries,
13.Recognizingthatthedevelopingcountriesconstitute 70percentoftheworld
populationandgeneratelessthan7percentofindustrialproduction,thatthegap
betweenthedevelopedandcertaindevelopingcountrieshasbeenwidening^interalia,
owingtothepersistenceofanunjustandinequitable_Junderthepresentinterna­
tionaleconomicorder;andthatdevelopmentisajointandcommonresponsibility of
theentireinternational community,
14.Takingintoaccountthatindustrialprogresshasnotdisplayedsignificant
advancesinthedevelopingcountriesasawhole,inspiteofseriouseffortson
theirparts.Thishasbeenfrequentlycausedbythedependenceoftheireconomies

-3-
ontheexportofprimarygoods^~andbyactionswithinthedevelopedcountries_/,
which^~have_7hasnotmadeitpossibletoachieveaprofounddynamiceffectwhich
wouldbecapableoftransforminginternalsoci-economicstructuresandlayingthe
basisforrealdevelopment ,
15.(unchanged)
16.(unchanged)
17.Awarethatmanyoftheobstacleswhichareinhibitingindustrialexpansion
inthedevelopingcountriesareofaninternalstructuralnature,andthatthere
alsocontinuetoexistnumerousimpedimentsarisingfrom^"colonialandneo-colonial
policiesornewformsof"Jtheirdependencyonthedevelopedworld,
18.Considering^"thetendencyoftheindustrialized countriestoreducecapital,
technicalandfinancialassistanceneededtopromotetheeconomicandsocialdeve­
lopmentofdevelopingcountriesingeneralandtheirindustrialdevelopmentin
particular,aswellastheincreasinglyharshertermsofthemeagreaidgiven_^that
tocompletetheireffortstowardsindustrialization thedevelopingcountriescon­
tinuetoneedforeignresourcesintheformofcapitalandtechnicalandfinancial
assistanceinordertopromotetheireconomicandsocialdevelopment and,in
particular ,theirindustrialdevelopment .
19.Observingwithconcernthegraveconsequences withwhichthepresentinterna­
tionalcrisisconfrontsthedevelopingcountriesasaresultofgrowinginflation
andeconomicinstability ,itisnecessary*toevolveajustandequitablerelation­
shipbetweenthepricesofrawmaterials,primarygoodsmanufactured andsemi­
manufactured goodsexportedbythedevelopingcountriesandthepricesofraw
materials,primarycommodities ,food,manufactured andsemi–manufactured goodsand
capitalequipmentimportedbythem,andtoworkforalinkbetweenthepricesof
exportsofdevelopingcountriesandthepricesoftheirimportsfromdeveloped
countries^andthatitisnecessarytoseektoevolveajustandequitablerelation¬
ship,inthecontextofinternational cooperation ,betweenthepricesofproducts
exportedbythedevelopingcountriesandthepricesofproductsimportedbythem.
20.TakingintoaccounttheCharteroftheEconomicRightsandDutiesofStates
asadoptedbytheGeneralAssemblyas£~a.basic_/a£iinstrument^"designedtoration–
alize_7whichshouldcontributetotherationalization ofinternational economic
relations,and^tocontribute/totheestablishmentofanewinternational economic
order,

-4-
21.Convincedthattheestablishment ofanewand.justinternational economic
orderlsasedonthecommoninterestsandco-operation ofallStatescanonly"be
achievedthroughtheequitableparticipation ofthedevelopingcountriesinthepro­
ductionandexchangeofgoodsandservices,^"replacingtheexistingunequaland
unjustinternationaldivisionoflabourJinordertoachieveamorejustandequit­
abledivisionoflabour,
22.(unchanged)
23*(unchanged)
Déclaré
1.(unchanged)
2.Theirfirmintentiontopromoteindustrialdevelopment throughconcerted
measuresatthenational,sub-regional ,regional,inter-regional ,andinternational
levelswithaviewtoimprovingtheeconomiesofthedevelopingcountries,andin
particularthoseoftheleastdevelopedcountries,andeliminating^""allformsof
politicalsubjugationandsocio-economic exploitationftheirdependenceonthe
developedcountries;
3.Theirunequivocalresolvetoensurethespeedyandeffectiveimplementation of
theprinciplesofindustrialization laiddownintheInternational DevelopmentStrat­
egyforthe1970s^"asadaptedtoJandintheProgrammeofAction;
4'Thatinordertofacilitatetheimplementation ofthenewInternational Eco­
nomicOrderandtheachievementofthetargetssetforthinthatDeclaration,£a
systemofcontinuousnegotiations andconsultations heelaborated7consultations "be
steppedupinUHTDOandotherappropriateinternational bodiesbetweendevelopedand
developingcountries;
5.That£"developed_7countriesundertakeanobjectiveandcriticalexaminationof
thepresentpoliciesandmakeappropriate adjustmentsintheireconomiessoasto
facilitatetheexpansionanddiversification of£"imports^exportsfromdeveloping
countriesandtherebypermitarational,justandequitableinternational divisionof
labour;

-5-
6.That,inviewoftheexistinglowpercentageshareofthedevelopingcountries
inworldindustrialproductionandtakingintoaccountthequalitative recommendations
madeinthepresentDeclaration,£theirshareshouldbeincreasedtoatleast25per
centofthetotalbytheyear2000,andthatitisnecessarythatthedeveloping
countriesshouldincreasetheir_7arateofindustrialgrowthinthedevelopingcoun­
tries^"atrates"Jconsiderablyhigherthanthe8percentrecommendedintheIndus­
trialDevelopmentStrategyfortheSecondUnitedNationsDevelopment Decadeshould
raisetheirshare,bytheyear2000,inacontextofgeneralgrowth,toalevel
considerably higherthanthepresentone;
7.(unchanged)
8.ThateveryStatehastheinalienablerighttoexercisefreelyandfullyits
sovereignty andpermanentcontroloveritsnaturalresources ,marineandterrestrial ,
andtoexploittheminanymannerappropriatetoitscircumstances .^~including_7
Nationalization ,asanexpressionofthisright,^~and~Jmustgiverise
tofaircompensation andbeundertakeninaccordancewiththenationallawsinforce
inthecountryexercising'thisrightandinaccordancewithitsinternational obli­
gations£andthat_7;
8a.NoStateshallbesubjectedtoanyformofeconomic,politicalorothercoercion
^~whichimpedesthefullandfreeexerciseofthatinaleniableright^;
9.(unchanged)
10.(unchanged)
11.(unchanged)
12.Thatinviewoftheneedtoconservethenon–renewableresources,wasteful
consumptionbeavoidedbyall^"tljiedeveloped"Jcountries,and,whereappropriate,
concertedactionbetakenbytheminthisrespect,andcertainquantitative limitations
beplacedwherenecessaryontheutilizationoftheseresources^"bythem/;
13«Thattheinternational community,andespeciallythedevelopedcountriesmust
mobilizehumanandmaterialresourcesinordertocopewithproblemswhichthreaten
theenvironment .

-6-
£Inthissensethedevelopedcountries,intheirintensifiedeffortstoprevent
environmental pollution,shallavoidcausingadditionalupheavalstothedeveloping
countries.Inadditiontheyshouldavoidaotionswhichmayresultintransferring
pollutiontothedevelopingcountries^.Inthissensethefrontiersofknowledge
must"beextendedinordertoreconcileaswellaspossiblethedevelopingcountries *
legitimatedesiretoensuretheirrapidindustrialization andeconomicgrowthwith
national,regionalandworldecologicalpreoccupations .Legislation andadminis­
trativeprovisionsareconsequently requiredatregional,nationalandinternational
levelstoseetoitthatanyindustrialplanningtakesdueaccountoftheprobable
effectsontheenvironment .
14-Thatall^~thedeveloped/countries^"shallreconsiderthereservationsthey
expressedatthetimeoftheadoptionoftheStrategywithaviewtowithdrawing them
andmustfullydischargetheirobligations bysubscribing tonewobligations inthe
contextoftheInternational Development Strategyasadaptedandrenewedandtotake
thenecessarypoliticaldecisionsandconcretespecificmeasuresinordertoimple­
menttheprovisionsoftheDeclaration andProgrammeofActioninview,notonly*of
theestablishment ofaNewInternational EconomicOrder,includingthecontribution
tothefinancingofdevelopingcountriesandthattheyaccept,agreeandfulfilthe
codesofconductandotherbasicinstruments whichareindispensable toevolvean
equitablebasisfortheNewInternational EconomicOrder_^,whenassessingandexam­
iningtheresultsoftheInternational Development Strategy,inthelightinparti­
cularoftherelevantprovisionsoftheDeclaration andProgrammeofactioninview
oftheestablishment ofaNewInternational EconomicOrder,seektoreachonthe
disputedpointsanagreementwhich,byenlargingtheareaofconsensus,wouldfacili­
tatetheimplementation oftheprovisions ;
15.Thattheunrestricted playofmarketforcesisnotanadequatemeansofpromo­
tingindustrialization onaglobalscaleorofachievinganappropriateinternational
divisionoflabourinthefieldofindustryandthattheactivitiesoftransnational
corporationsshould^~besubjecttoregulationsandcontrolbythehomeandhost
countriesinordertoensurethattheirparticipationis_7becompatiblewiththe
developmentplansandpoliciesofthehostcountries^~andtoaninternational codeof
conductandotherbasicinstruments7»
*Sicintheoriginal

-7-
16. That uptothepresent time ,economic power hasbeen used tothwart the
aspirationsof thedeveloping countries foreffective participation intheprocess
ofdecision-making oninternational monetary questions .Theprinciples which con­
tinue togovern thepresent monetary andfinancial system have exclusively served
theinterests ofcertain developed countries ,andtheefforts made "bythedeveloping
countries with aview totheadaptation ofthis system totake into account their
specific needs have "beenunsuccessful .^ Thatanewinternational monetary system
must "beestablished inthedecision andoperation ofwhich thedeveloping countries
will participate .Itmust beuniversal ,guarantee stability inflows andconditions
ofdevelopment financing forthedeveloping countries andrecognize their specific
needs ;
17.That steps betaken tostrengthen £andrestructure ^theaction ofUNTDO ,
thereby making itmore responsive totheneeds ofdeveloping countries andespecially
the least developed countries inthepromotion ofindustrialization and inthe imple­
mentation oftheNew International Economic Order ;
18.That ,sothat inthestrengthened £"andrestructured ^UNTDO ,developing coun­
tries including theleast developed countries ,^~be7aregiven greater participation
inallpolicy-making andmanagement activities oftheOrganization ,£~and ~J£~their_/
membership £"substantially increased on_J oftheIndustrial Development Board bein­
creased intheir favour inorder toachieve ageographical distribution similar to
that inother United Nations development agencies ,
19* That itisurgently necessary that thedeveloping countries should change their
traditional method ofnegotiation with thedeveloped countries .Tobring about this
change they must undertake joint action inorder tostrengthen their power ofnego­
tiation vis-a-visthedeveloped countries ;
19a.£"Forthis purpose ,thedeveloping countries must consider allpossible means
ofstrengthening theaction ofproducers *associations already established anden­
courage thecreation ofother associations fortheprincipal commodities exported by
them ,andestablish amechanism forconsultation andco-operation among thevarious
producers *associations forthepurpose oftheco-ordination oftheir activities and
fortheir mutual support_7 That theroleberecognized which producers' associations
canplay ,ininternational cooperation andwith aview toachieving their objectives ,
inorder tocontribute inter alia toasustained growth oftheworld economy andto "an
acceleration ofthe development ofthe developing countries s
/

-8-
20.Thatdevelopingcountriesestablisheffective w&afuSofstrengthening their
collectivebargainingpower_7inorderto"beinappositionto"bargainwiththeindus­
trializedcountriestoobtain^better^favourabletermsfortheacquisitionoftech­
nology,expertise,licencesandequipment,aswellasfairandremunerativeprices
fortheirprimaryproducts;
21.(\inchanged)
22.(unchanged)
23.(unchanged)
24.Thatdevelopingcountriesdevoteparticularattention,onanationalorregional
basis,tothedevelopmentofbasicindustriessuchasironandsteel,chemicals,petro­
chemicalsandengineering ,therebyconsolidating theireconomicindependence whileat
thesametimeassuringaneffectiveformofimport-substitution andagreatershare
ofworldtrade:
25.(unchanged)
26.(unchanged) '/ ,

PLANOPACTION
A»Measuresofnationalscope
Inthedevelopingcountries
1.Nationalindustrialization policiesshouldlayemphasisonthefollowing
elements:
(a)(unchanged)
(b)(unchanged)
(c)(unchanged)
(d)(unchanged)
(e)(firstparagraphunchanged)
Putspecialemphasisonthecreationof"basicindustriessuchasiron
andsteel,chemicalandpetro–chemicalswhich£~settheconditionsfor
self-reliance_7 willenablethemtoconsolidatetheireconomicindep­
endence;
.(f)(unchanged)
(g)(unchanged)
(h)(unchanged)
(i)(unchanged)
(j)(unchanged)
(k)(unchanged)
(l)Theestablishment andstrengthening ofmachineryandinstitutionsto
regulateandcontrolforeigninvestments andtransferoftechnologyina
climateofstabilityandequity;
(m)(unchanged)
2%Thedevelopedcountriesshouldadoptthefollowingmeasures:
(a)Progressivelyeliminatetariffandnon–■tariffbarriers£"includingtariff
escalationonapreferentialbasis7.Adheretotheprincipleofthe

\10.
standstillonimportsfromthedevelopingcountriesand£"totheneedfor_^
recourseto£prior^consultationintheeventthatspecialcircumstances
warrantamodification ofthestandstill;
(b)Adopt^"market^sharingprogrammesensuring^trademeasureswithaview
toensuringincreasedimportsofmanufactured andsemi-manufactured pro­
ductsofinteresttodevelopingcountries;
(c)£Adoptanticipatoryadjustmentassistanceprogrammes_/Encourage
adjustmentstotheireconomicstructurewhicharerenderednecessaryby
internationaltrade^"designedtoassistuneconomicand/orinefficient
domesticindustriestophaseoutandtransfertheiremployeestoother
activatesinordertopermit7Ithiswouldpermittheliberalizedim­
portationofgoodsprocessedandmanufactured inthedevelopingcountries;
(d)£"Transfer^Redeploymentofselectedproductioncapacitiesfromthe
developedcountriestothedevelopingcountresandtopreventthecrea­
tionofanynewsuchactivitiesindevelopedcountries^inorderto
facilitatetheestablishment indevelopingcountriesofindustries
intendedtosupplytheirdomesticandexportmarkets,andpromotingat
thesametimeahigherdegreeofprocessingoftheirnaturalresources;
(e)(unchanged)
(f)(unchanged)
(g)Co-operatewiththeGovernmentsofthedevelopingcountriestoensure
thattheactivities^"bytakingmeasurestorestrictandprevent_7of
developedcountries'nationalandtransnational corporations
areinlinewiththeeconomicandsocialpoliciesoffromengagingin
activitieswhichj^developingcountriesconsiderasobstaclestotheir
healthydevelopment^;
(h)£Adoptappropriatemeasurestoavoidproductionofsyntheticsubstitutes
whichmayimpedetheaccesstocompetitiveproductsfromthedeveloping
countries_7Cooperatewiththedevelopingcountriestoimprovethecom¬
petitiveness ofnaturalproductswhichhavetocompetewithsyntheticand
substitutematerials;

/11./7;
/
B.Co–operationamongdevelopingcountries .: * ^//
1.Atthesub–regional,regionalandinterregional levels
Thedevelopingcountriesshould,adoptthefollowingmeasureswithrespecttoAtheirsub–regional,regionalandinterregional level:
(a)(unchanged)
(b)Supportforthepresentprocessesofeconomicintegration,aswellas
thesearchfornewformsofeconomicco-operation^"notablythroughthe
reinforcementofProducers'Associations ,Jindevelopingcountriesby-
meansofpermanentexchangeoftheirexperiences ,harmonization oftheir
actionsandtheirmobilization inordertosupportanyofthemincase
ofneedsoastoensuredevelopingcountries 1solidarityandfullsover­
eigntyovertheirnaturalresources;
(c)(unchanged)
(d)(unchanged)
(e)(unchanged)
(f)(unchanged)
(g)(-unchanged)
Inordertoachievetheseobjectives,thedevelopingcountrieswillimplement
themeasurescontainedintheirrespectiveregionaldeclarations .
..C»Co–operationamongdeveloping anddevelopedcountries
1.Co-operation amongthedeveloping anddevelopedcountriesshouldtakethefollow­
ingforms:
(a)Application,expansionandimprovementofthegeneralizedsystemofpre­
ferences,withtheincorporation initofnewproductsandtheelimina­
tionofthenon-tariffbarrierswhichhampertheuseofthissystem/
improvementoftheconditionsofapplication .Inaddition,thedevelo­
pedcountriesmustadherestrictlytotheprinciplethatthesystemof
preferences cannotbeusedasaninstrumentofpoliticaloreconomic
pressure:

12.
Theconductingofmultilateral tradenegotiations underthespanscrshipofGATT
£musttakeinto_7takingfullyintoaccountthedevelopmentneedsof
thedevelopingcountries^~andmust"becarriedoutonthe"basisofprin­
ciplesofnon-discriminatory preferentialtreatmentwithoutreciprocity_7
inthelightoftheobjectivesdefinedinTokyo,whichincludeelements
ofnon-reciprocity andofspecial,morefavourabletreatmentbyapplying
measurestailoredtotheneedsofthedevelopingcountriesinthosefields
ofthenegotiations wherethisisfeasibleandappropriate .
^"Recognitionbythedevelopedcountriesoftheri^itofthedeveloping
countriestoappljJTakingintoconsiderationtheindustrialization
needsofthedevelopingcountriesatthemultilateral negotiations con­
ductedundertheauspicesofGATTonthesubjectofincentivestoindu­
strialproductionearmarkedforexport,forthepurposeofachieving
levelsofinternational competiveness ;
(unchanged)
Thegrantingofcreditsbythefinancinginstitutions oftheindustria­
lizedcountriesandinternational organizations tothedeveloping coun­
triesmustbecompletelyfreeofanykindofpolitical^~oreconomic_7
stringsandshouldinvolvenoeconomicconditionsotherthanthosenor­
mallyimposedonborrowerstoensuretheachievement ofthedevelopment
objectivesforwhichthecreditsarerequested;
(deleted)
Financialresourcesavailableinsomedevelopingcountriesshouldbe
usedforinvestmentinotherdevelopingcountrieseitherthroughbilar-
teralarrangements and/orthecreationofaNeutralInternational Fund.
SuchaFundmaybefinancedbyvoluntarycontributions fromthedevel­
opinganddevelopedcountrieswithavailableresources^""andbyatleast
equalfinancialcontributions fromthedevelopedcountries^.Afair
distribution ofseatsamongtherecipient,developedanddeveloping
countrieswithavailableresourcesshallbeequallyrepresented_7
shouldbeensuredintheFund:
(unchanged)

(i)Measuresshould "beadoptedwhichtakeintoaccountthespeoialneedsof
thedevelopingcouifrissvis-a-visthereformoftheinternational mon­
etarysystem,inthecontextofwhichreformthelink"betweenfinancial
resourcesfordevelopmentpurposesandtheallocationofspecialdrawing
rightsisbeingexamined^"includingthoseaspectswhichrefertothe
useofspecialdrawingrightsforthefinancingofindustrialdevelop­
mentinthedevelopingcountriesJfwiththefullparticipation ofall
Statesinthisreform:
*l &A -m
(j)Thedevelopingcountriesshouldhegrantedaccesstotechnological know­
howandadvancedtechnologies ,whetherpatentedornot,underfairand
equitableconditionswhichareaccepted "bytheirpartnersinsuchtrans­
fers,takingintoaccountthespecificdevelopmentrequirements ofthe
1 - i.récipientcountries;
a
(k)Thepossibilityofestablishing anindustrialandtechnological informa­
tionbankshouldbe^"established^studiedtomakeavailableagreater
flowtothedevelopingcountriesofinformationpermittingtheproper
selectionofadvancedtechnologies ; n
> .
(l)International conventionsonpatentsandregisteredtrademarksshouldbe
£reviewed_7examinedinthelightofthedevelopmentneedsofdeveloping
countriesthroughtheWIPO,withtheassistance ,wherenecessary ,ofIIMCTAD
andotherrelevantUnitedNationsbodies£inorderthatA.\maybecome
aninstrumentofgenuinesupportforthedevelopingcountries^
t ^
(m)^"UrgentapprovalshouldbegiventotheInternational CodeofConduct
forTransnational Corporations whichisnowun^erdiscussioninthe
UnitedNations^TheworkundertakenintheEconomicandSocialCommi­
tteetoprepareanumberofrecommendations which,takenagawhole,
wouldconstitutethebasisofacodeofconductconcerningtransnational
qorporations ,shouldbepursuedwithaccountbeingtakenofthedeveloping
countries *industrialization needs:
H
(n)AnInternational CodeofconductonTransferofTechnology,acceptedby
allStatesconcerned,shouldbe^"adoptedwithaslittledelayaspossi
ble_7established;V ;
1
'' •"» rt

14.
(o)£Ratification ofInternational CodeofConduot onLiner Conferences ;^
(p) (unchanged ) -
(q)Theuseofrenewable natural resources ^~inplace of_7 asagainst
synthetio substitutes should bepromoted inorder toopen possibilities
forincreased production andindustrial processing indeveloped coun-
j
tries ;
(r) (unchanged ) " "*
D»The least developed countries
The least developed ofthedeveloping countries present asetofproblems which
require special measures ifthese countries aretoattain anacceptable fevel ofecono­
micdevelopment .Inconformity with^"Chapter X.oftheSpecial Programme contained
in7resolution 3202 (S-Vl )establishing anewinternational economic order ,industri­
alization inthese countries must take place atamore rapid pace than a^rage .
Concerted action andspecial measures ofassistance from other countries uand inter­
national organizations arenecessary tomobilize agreater volume ofresources to
make possible ;1thelaunching ofinnovative projects inthese countries andthelaying
ofasound basis forthepromotion oftheir industrialization through projects and
h
ri
>1
η
■i
(f)Preferential treatment fortheindustrial products from these countries
■■; u
aswell asinthesetting upofjoint enterprises under regional co­
n r
operation £~including special provisions fortheuseofSDR'sintheir
development projeots ;/
(g) (unchanged )
(h)(unchanged ) 'measures Buch 'as:
(a) (unchanged )
(b) (unchanged )
(c) (unchanged )
(d) (unchanged )
■ !
(e) (unchanged )

15-
F-InstitutionalMachinery
1.RoleofUNTDO–tobedefinedafterexamination oftheproposalsoftheGroup
of77-
2.Consultation procédures
(a)Methodsshould "beelaboratedtopromoteregularexchangesofinformation
andconsultations amongtherepresentatives ofthevariouseconomicand
socialinterestsconcernedwithindustrialdevelopment ,withtheaimof
facilitating theestablishment ofnewindustrialstructuresindeveloping
countries.Suchconsultations couldbeheldeitherbilaterally ortri-
laterallyintheframeworkofindustrialcooperation schemesormultila­
terallyintheframeworkofUNIPOandothercompetentinter-governmental
organizations .Theirobjectiveshouldbetoincreasetheamountand
qualityofinformationwithrespecttothedevelopmentofdejmandand
supplyofmanufactured goods,theavailability ofproductionfactorsand
theircosts,thepossibilities andconditionsofinvestmentandtheavail­
abilityofappropriate equipmentandtechnologies ;
(b)Internationalorganizations concernedshouldcontinuetogivedueatten­
tiontorespondinginaflexiblemannertorequestsbydevelopingcoun­
triesintheindustrialfield,takingintoaccounttheirquicklychanging
needs;
(o)Intensiveeffortsshouldbemadebytheinternational organizations
concernedtoharmonizeandcoordinatefurthertheirassistancetodevel­
opingcountriesinthefieldofindustrywithaviewtoutilizingthe
availableresourcesaseffectivelyaspossible; L
.. 1
Firstalternative
£P«TheCharteroftheEconomicRightsandDutiesofStates
Thecountriesgatheredherestresstheneedfortheinternational communitytocomply
infullwiththepreceptscontainedintheCharteroftheEconomicRightsandDuties
ofStatessothatitwillbecomeaneffectiveinstrumentforestablishing anewsystem
ofinternational economicrelationsbasedonequity,equality,sovereigntyandthe
interdependence oftheinterestsofthedevelopedandthedevelopingcountries.7

16.
Secondalternative
Thecountriesgatheredherestresstheneedfortheinternational communitytotake
concertedactiontoseekagreementonthedisputedpointsintheCharterofthe
EconomicRightsandDutiesofStatessothatitwillbecomeaneffectiveinstrument
forestablishing anewsystemofinternational economic?relations "basedonequity,
equality,sovereigntyandtheinterdependence oftheinterestsofthedevelopedand
thedevelopingoountries.
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