CELEX: 51989PC0445
Language: en
Date: 1989-09-21
Title: PROPOSAL FOR A COUNCIL DECISION CONCERNING THE CONCLUSION OF THE AGREEMENT ESTABLISHING THE COMMON FUND FOR COMMODITIES

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)
 ---pagebreak---                                   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
 ---pagebreak---                                    - 2 -
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.
 ---pagebreak---                       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
 ---pagebreak---                                    - 2 -
                                 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
 ---pagebreak---                                     TD/IPC/CF/CONF/25
AGREEMENT ESTABLISHING THE COMMON FUND
           FOR COMMODITIES
             UNITED NATIONS
                                            c
 ---pagebreak---                                    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
 ---pagebreak---                                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
 ---pagebreak---                                                     Part One
             Agreement establishing the common fund for commodities
                                                  CONTENTS
PREAMBLE
                                          C H A T T E R 1. D E P I N T / I O N S
4niek
  I. Definitions
                               CHAPTER 11. OBJECTIVES AND FUNCTIONS
 1    Objectives
 3.   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
                            C H A T T E R V. C A P I T A L A N D O T H E R R E S O U R C E S
 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                                  ?
 ---pagebreak---  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
                              C H A P T E R XII. I N T E R P R É T A T I O N A N D ARBITRATION
52.      Interpretation                                                                         18
53.      Arbitration                                                                            18
                                                                                                    ,'-') O
 ---pagebreak---                  Arttck                                                                                        *t*
                                                   CHAPTER XIII. FINAL PROVISIONS
                 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.
                                                                                              Cmrrtncy mmio
                                  Cmrwrncy                                                 ft* Umi tfAemmi
                           Deutsche mark . .                                                    2.33306
                           French fiant.                                                        5.42029
                           Japanese yen . .                                                   287.452
                           Pound sterling . .                                                   a563927
                           United States dollar                                                 1.32162
                          Preamble                                                      Chapter I. Definitions
   The Parties.
                                                                                                Article J
  Determined to promote economic co-operation and
understanding among all States, particularly between                                          DEFINITIONS
developed and developing countries, based on the                        For the purposes of this Agreement :
principles of equity ana sovereign equality and there-
by to contribute to the establishment of a New Inter-                   1. "Fund" means the Common Fund for Com-
national Economic Order.                                             modities established by this Agreement.
   Recognizing the need for improved forms of inter-                    2 "International Commodity Agreement or Ar-
national co-operation in the field of commodities as                 rangement" (hereinafter referred to as ICA) means
an essential condition for the establishment of a New                any intergovernmental agreement or arrangement to
International Economic Order, aimed at promoting                     promote international co-operation in a commodity.
economic and social development, particularly of de-                 the parties to which include producers and consum-
veloping countries.                                                  ers covering the bulk of world trade in the com-
  Desirous of promoting global action to improve                     modity concerned.
market structures in international trade in com-                        3. "International Commodity Organization"
modities of interest to developing countries,                        (hereinafter referred to as ICO) means the organiza-
   Recoiling resolution 93 (IV) on the Integrated Pro-               tion established by an ICA to implement the provi-
gramme for Commodities adopted at the fourth ses-                    sions of the ICA.
sion of the United Nations Conference on Trade and                      4. "Associated ICO" means an ICO which is as-
Development (hereinafter referred to as UiyCTAD),                    sociated with the Fund pursuant to article 7.
   Have agreed to establish hereby the Common                           5. "Association Agreement" means the agree-
Fund for Commodities, which shall operate in accor-                  ment entered into between an ICO and the Fund
dance with the following provisions:                                 pursuant to article 7.
                                                                                                                      4*
 ---pagebreak---     6. "Maximum Financial Requirements" (here-                   Chapter II. Objectives and functions
 inafter referred to as MFR) means the maximum
 amount of funds that may be drawn and borrowed                                 Article 2
 by an Associated ICO from the Fund, to be deter-
 mined in accordance with article 17, paragraph 8.                             OBJECTIVES
    7. "International Commodity Body" (hereinafter        The objectives of the Fund shall be:
 referred to as ICB) means a body designated in ac-
cordance with article 7, paragraph 9.                     (a) To serve as a key instrument in attaining the
                                                       agreed objectives of the Integrated Programme for
    8. "Unit of Account" means the unit of account     Commodities as embolied in resolution 93 (IV) of
of the Fund as defined in accordance with article 8.   UNCTAD;
paragraph 1.
                                                          (b) To facilitate the conclusion and functioning of
    9. "Usable Currencies" means (a) the deutsche      ICAs. particularly concerning commodities of special
 mark, the French franc, the Japanese yen. the pound   interest to developing countries.
sterling, the United States dollar and any other cur-
 rency which has been designated from time to time                              Article 3
 by a competent international monetary organization
as being in fact widely used to make payments for                              FUNCTIONS
international transactions and widely traded in the
principal exchange markets, and (b) any other freely      In fulfilment of its objectives, the Fund shall exer-
available and effectively usable currency which the    cise the following functions:
 Executive Board may designate by a Qualified Ma-         (a) To contribute, through its First Account as
jority after the approval of the country whose cur-    hereinafter provided, to the financing of interna-
 rency the Fund proposes to designate as such. The     tional buffer stocks and internationally co-ordinated
Governing Council shall designate a competent in-      national stocks, all within the framework of ICAs;
ternational monetary organization under (a) above         (b) To finance, through its Second Account.
and shall adopt by a Qualified Majority rules and      measures in the field of commodities other than
regulations regarding the designation of currencies    stocking, as hereinafter provided;
under (b) above, in accordance with prevailing inter-
national monetary practice. Currencies may be re-         (c) To promote co-ordination and consultation
moved from the list of Usable Currencies by the Exe-   through its Second Account with regard to measures
cutive Board by a Qualified Majority.                  in the field of commodities other than stocking, and
                                                       their financing, with a view to providing a com-
    10. "Directly Contributed Capital" means capital   modity focus.
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.                          Chapter III. Membership
    12. "Payable Shares" means the shares of
 Directly Contributed Capital specified in article 9.                           Article 4
paragraph 2 (£), and article 10, paragraph 2 (b).
                                                                              ELIGIBILITY
    13. "Guarantee Capital" means capital provided
 to the Fund, pursuant to article 14, paragraph 4. by     Membership in the Fund shall be open to:
 Members of the Fund participating in an Associated       (a) All States Members of the United Nations or of
ICO.                                                   any of its specialized agencies or of the International
    14. "Guarantees" means guarantees provided to      Atomic Energy Agency; and
the Fund, pursuant to article 14. paragraph 5. by par-    (b) Any intergovernmental organization of re-
ticipants in an Associated ICO which are not Mem-      gional economic integration which exercises compe-
 bers of the Fund.                                     tence in fields of activity of the Fund. Such inter-
    15. "Stock Warrants" means stock warrants,         governmental organizations shall not be required to
warehouse receipts or other documents of title         undertake any financial obligations to the Fund; nor
evidencing ownership of commodity stocks.              shall they hold any votes.
    16. "Total voting power" means the sum of the
votes held by all the Members of the Fund.                                      Article 5
    17. "Simple Majority" means more than half of                               MEMBERS
 all votes cast.
                                                          The Members of the Fund (hereinafter referred to
    18. "Qualified Majority' means at least two        as Members) shall be:
 thirds of all votes cast.                                (a) Those States which have ratified, accepted or
    19. "Highly Qualified Majority" means at least     approved this Agreement in accordance with article
 three fourths of all votes cast.                      54;
    20.    Votes cast" means affirmative and negative     (b) Those States which have acceded to this Agree-
 votes.                                                ment in accordance with article 56;
                                                                                                          y\Z
 ---pagebreak---     (c) Those intergovernmental organizations refer-         7. An Associated ICO may, if the Association Ag-
 red to in article 4 (b) which have ratified, accepted or reement so provides and with the consent of the pre-
 approved this Agreement in accordance with article       ceding Associated ICO covering the same com-
 54;                                                      modity, succeed to the rights and obligations of the
    (d) Those intergovernmental organizations refer-      preceding Associated ICO.
 red to in article 4 (b) which have acceded to this          8. The Fund shall not intervene directly in com-
 Agreement in accordance with article 56.                 modity markets. However, the Fund may dispose of
                                                          commodity stocks only pursuant to article 17, para-
                                                          graphs 15 to 17.
                          Article 6                          9. For the purpose of the Second Account, the
                  LIMITATION OF LIABILITY                 Executive Board shall from time to time designate
                                                          appropriate commodity bodies, including ICOs.
    No member shall be Liable, by reason only of its      whether or not they are Associated ICOs. as ICBs.
 membership, for acts or obligations of the Fund.         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                                               Article 8
    RELATIONSHIP OF    ICOs AND ICBs WITH THE FUND                    UNIT OF ACCOUNT AND CURRENCIES
    1. The facilities of the Fund's First Account shall       1. The Unit of Account of the Fund shall be as
 be used only by ICOs established to implement the         defined in schedule F.
provisions of ICAs providing for either international         2. The Fund shall hold, and conduct its financial
 buffer stocks or internationally co-ordinated national    transactions in. Usable Currencies. Except as
stocks, and which have concluded an Association Ag-        provided in article 16, paragraph 5 (b\ no Member
 reement. The Association Agreement shall comply           shall maintain or impose restrictions on the holding.
with the terms of this Agreement and of any rules          use or exchange by the Fund of Usable Currencies
and regulations consistent therewith to be adopted         deriving from:
 by the Governing Council.
                                                             (a) Payment of subscriptions of Shares of Directly
    2. An ICO established to implement the provi-          Contributed Capital;
sions of an ICA which provides for international
 buffer stocks may become associated with the Fund           (b) Payment of Guarantee Capital, cash in lieu of
 for the purposes of the First Account, provided that      Guarantee Capital, Guarantees or cash deposits re-
 the ICA is negotiated or renegotiated on. and con-        sulting from the association of ICOs with the Fund;
 forms to, the principle of joint ouffer stock financing     (c) Payment of voluntary contributions;
 by producers and consumers participating therein.
 For the purposes of this Agreement, levy-financed           (d) Borrowing;
 ICAs shall be eligible for association with the Fund.       (e) Disposal of forfeited stocks, pursuant to article
    3. A proposed Association Agreement shall be           17, paragraphs 15 to 17;
  resented by the Managing Director to the Executive         (/) Payment on account of principal, income, in-
S  oard and, with the recommendation of the Board,
to the Governing Council for approval by a
                                                           terest or other charges in respect of loans or invest-
                                                           ments made out of any of the funds referred to in
Qualified Majority.                                        this paragraph.
   4. In carrying out the provisions of the Associ-          3. The Executive Board shall determine the
ation Agreement between the Fund and an Asso-              method of valuation of Usable Currencies, in terms
ciated ICO each institution shall respect the auto-       of the Unit of Account, in accordance with prevailing
nomy of the other. The Association Agreement shall         international monetary practice.
specify the mutual rights and obligations of the Fund
and the Associated ICO, in terms consistent with the
relevant provisions of this Agreement
                                                                                  Article 9
    5. An Associated ICO shall be entitled to borrow
from the Fund through its First Account without pre-                         CAPITAL RESOURCES
judice to its eligibility to obtain financing from the
Second Account, provided that the Associated ICO              1. The capital of the Fund shall consist of:
and its participants have performed and are duly             (a) Directly Contributed Capital to be divided into
performing their obligations to the Fund.                  47,000 Shares to be issued by the Fund, having a par
   6. An Association Agreement shall provide for a         value of 7,566.47145 Units of Account each and a
settlement of accounts between the Associated ICO          total value of 355,624,158 Units of Account; and
and the Fund before any renewal of the Association           (b) Guarantee Capital provided directly to the
Agreement                                                  Fund in accordance with article 14, paragraph 4.
                                                                                                          -1J
 ---pagebreak---    2. The Shares to be issued by ihe Fund shall be         count as at the date of this Agreement The Gov»fl-
divided m«:o:                                              ing Council shall adopt rules and regulations cover-
   (a) 37,DOO Paid-in Shares; and                          ing the payment of subscriptions in Uss.blt Curren-
                                                           cies in the case of designation of additional Usable
   ib) 10,000 Payable Shares.                              Currencies or removal of UsaMe Currencies from ihe
   3. Shares of DirecUy Contributed Capital shall be       list of Usable Currencies in accordance with article 1,
available for subscription only by Members in accor-       definition 9.
dance with the previsions of article 10,                   At the time of deposit of its instrument of ratifica-
   4. Tht Shares of Directly Contributed Capital:          tion, acceptance or approval, each Member shall
                                                           select one of the procedures above, which shall apply
   (a) Shall, if necessary, be increased by the Govern-    to all such payments.
ing Council upon the accession of any State under
article -56;                                                  2. When undertaking any review in accordance
                                                           with article 12, paragraph 2, the Governing Council
   (b) May be increased by the Governing Council in        shall review the operation of the method of payment
accordance with article 12;                                referred to in paragraph I of this article, in the light
   (c) Shall be increased by the amount needed pur-        of exchange-rate fluctuations, and. taking into ac-
suant io article 17, paragraph 14.                         count developments in the practice of international
   5. If the Governing Council makes available for         lending institutions, shall decide by a Highly
subscription the unsubscribed Shares of Directly           Qualified Majority on changes, if any, in the method
Contributed Capital pursuant to article 12, para-          of payment of subscriptions of any additional Shares
graph 3. or increases the Shares of Directly Con-          of Directly Contributed Capital subsequently issued
tributed Capital pursuant to paragraph 4 (b) or 4 (c)      in accordance with article 12. paragraph 3.
of this article, each Member shall have the right, but        3. Each Member referred to in article 5 (a) shall:
shall not be required, to subscribe such Shares.              (a) Pay 30 per cent of its total subscription of
                                                           Paid-in Shares within 60 days after the entry into
                        Article 10                         force of this Agreement, or within 30 davs after the
                 SUBSCRIPTION OF SHARES                   date of deposit of its instrument of ratification, ac-
    1. Each Member referred to in article 5 (a) shall     ceptance or approval, whichever is later;
subscribe, as set forth in schedule A:                        (b) One year after the payment provided for in
   (a) 100 Paid-in Shares; and                            subparagraph (a) above, pay'20 per cent of its total
                                                          subscription of Paid-in Snares and deposit with the
   (b) Any additional Paid-in and Payable Shares.         Fund irrevocable, non-negotiable, non-interest-bear-
   2. Each Member referred to in article 5 (b) shall      ing promissory notes in an amount of 10 per cent of
subscribe:                                                its total subscription of Paid-in Shares. Such notes
                                                          shall be encashed as and when decided by the Execu-
   (a) 100 Paid-in Shares; and                            tive Board;
   (b) Any additional Paid-in and Payable Shares to           (c) Two years after the payment provided for in
be determined by the Governing Council by a               subparagraph (a) above, deposit with the Fund irre-
Qualified Majority in a manner consistent with the        vocable, non-negotiable, non-interest-bearing pro-
allocation of Shares in schedule A and in accordance      missory notes in an amount of 40 per cent of its total
with the terms and conditions agreed pursuant to art-     subscription of Paid-in Shares.
icle 56.
                                                          Such notes shall be encashed as and when decided
   3. Each Member may allocate to the Second Ac-          by the Executive Board by a Qualified Majority, hav-
count a part of its subscription under paragraph 1 (a)    ing due regard to the operational needs of the Fund,
of this article with a view to an aggregate allocation    except that the promissory notes in respect of Shares
to the Second Account, on a voluntary basis, of not       allocated to the Second Account shall be encashed as
less than 52,965.300 Units of Account                     and when decided by the Executive Board.
   4. Shares of Directly Contributed Capital shall            4. The amount subscribed by each Member for
not be pledged or encumbered by Members in any             Payable Shares shall be subject to call by the Fund
manner whatsoever and shall be transferable only to       only as provided in article 17, paragraph 12.
the Fund.
                                                              5. Calls on Shares of Directly Contributed Cap-
                        Article JI                        ital shall be made pro rata from all Members with
                   PAYMENT OF SHARES                      respect to whichever class or classes of Shares are
                                                          being called, except as provided for in paragraph 3
   1. Payments of Shares of Directly Contributed          (c) of this article.
Capital subscribed by each Member shall be made:
   (a) In any Usable Currency at the rate of conver-          6. Special arrangements for payment of subscrip-
sion between that Usable Currency and the Unit of         tions of Shares of Directly Contributed Capital by
Account as at the date of payment; or                     the least developed countries shall be as set forth in
                                                          schedule B.
   (b) In a Usable Currency selected by that Member
at the time of deposit of its instrument of ratification.    7. Subscriptions of Shares of Directly Con-
acceptance or approval, and at the rate of conversion     tributed Capital may, when relevant, be paid by the
between that Usable Currency and the Unit of Ac-          appropriate agencies of Members concerned.
                                                                                                                ^
 ---pagebreak---                         Article 12                      Associated ICO, one third of its MFR. Such deposit
                                                        shall be made in full or in instalments as the Asso-
 ADEQUACY OF SUBSCRIPTIONS OF SHARES OF DIRECTLY        ciated ICO and the Fund may agree, taking into ac-
                  CONTRIBUTED CAPITAL                   count all relevant factors, including the Funds liqui-
    1. In the event that 18 months after the entry into dity position, the need for maximizing the financial
force of this Agreement subscriptions of Shares of benefit to be derived from the availability of cash
Directly Contributed Capital fall short of the amount deposits of Associated ICOs and the capacity of the
specified in article 9, paragraph 1 (a), the adequacy Associated ICO concerned to raise the cash required
of the subscriptions shall be reviewed by the Govern- for meeting its deposit obligation.
ing Council as soon as possible thereafter.                2. An Associated ICO which is holding stocks at
   2. The Governing Council shall further review, at the time of its association with the Fund may meet a
such intervals as it may deem appropriate, the part or all of its deposit obligation under paragraph
adequacy of the Directly Contributed Capital avail- 1 of this article by pledging to, or assigning in trust
able to the First Account. The first such review shall for, the Fund Stock Warrants of equivalent value.
take place not later than the end of the third year        3. An Associated ICO may deposit with th*
after the entry into force of this Agreement.           Fund, on mutually acceptable terms and conditions.
   3. As a result of any review under paragraph 1 or any cash surplus, in addition to deposits made under
2 of this article, the Governing Council may decide paragraph 1 of this article.
to make available for subscription unsubscribed                  B. Guarantee Capital and Guarantees
Shares or to issue additional Shares of Directly Con-
tributed Capital on a basis of assessment to be de-        4. Upon the association of an ICO with the Fund.
cided by the Governing Council.                         Members participating in that Associated ICO shall
   4. Decisions by the Governing Council under this provide
                                                        oasis
                                                                  directly to the Fund Guarantee Capital on a
                                                               determined   by the Associated ICO and satisfac-
article shall be taken by a Highly Qualified Majority. tory to the Fund.         The aggregate value of the
                                                        Guarantee Capital, and any Guarantees or cash
                        Article 13                      provided under paragraph 5 of this article shall equal
                VOLUNTARY CONTRIBUTIONS
                                                        two thirds of the MFR of that Associated ICO. ex-
                                                        cept as provided for in paragraph 7 of this article
    1. The Fund may accept voluntary contributions Guarantee Capital may. when relevant, be provided
from Members and other sources. Such contributions by the appropriate agencies of the Members con-
shall be paid in Usable Currencies.                     cerned, on a basis satisfactory to the Fund.
   2. The target for the initial voluntary contribu-       5. If participants in an Associated ICO are not
tions for use in the Second Account shall be Members, that Associated ICO shall deposit cash
211.861.200 Units of Account, in addition to the allo- with the Fund, in addition to the cash referred to in
cation made in accordance with article 10. para- paragraph 1 of this article, in the amount of the
graph 3.                                                Guarantee Capital which such participants would
                                                        have provided had they been Members; except that
   3. (a) The Governing Council shall review the the Governing Council may by a Highly Qualified
adequacy of the resources of the Second Account not Majority permit that Associated ICO to arrange
later than the end of the third year after the entry either for the provision of additional Guarantee Cap-
into force of this Agreement. In the light of the ac- ital of the same amount by Members participating
tivities of the Second Account, the Governing Coun- in that Associated ICO. or for the provision of
cil may also undertake such a review at such other Guarantees of the same amount by participants in
times as it decides.                                    that Associated ICO which are not Members Such
   (b) In the light of any such reviews, the Governing Guarantees shall carry financial obligations compar-
Council may decide to replenish the resources of the able to those of Guarantee Capital and shall be in a
Second Account and make the necessary arrange- form satisfactory to the Fund.
ments. Any such replenishments shall be voluntary          6. Guarantee Capital and Guarantees shall be
for Members and in accordance with this Agreement. subject       to call by the Fund only in accordance with
   4. Voluntary contributions shall be made without article 17, paragraphs 11 to 13. Payment of such
restrictions as to their use by the Fund, except as to Guarantee Capital and Guarantees shall be made m
their designation by the contributor for use in the Usable Currencies.
First or Second Account.
                                                           7. If an Associated ICO is meeting its deposit ob-
                                                        ligation in instalments pursuant to paragraph 1 of
                        Article 14                      this article, such Associated ICO and its participants
 RESOURCES DERIVING FROM THE ASSOCIATION OF ICOs
                                                        shall, upon the payment of each instalment, provide.
                     WITH THE FUND
                                                        as  appropriate.  Guarantee Capital, cash or Guaran-
                                                        tees, m accordance with paragraph 5 of this article.
                    A. Cash deposits                    which in the aggregate shall equal twice thé amount
                                                        of that instalment.
   1. Upon the association of an ICO with the Fund,                        C. Stock Warrants
the Associated ICO shall, except as specified in para-
graph 2 of this article, deposit with the Fund in cash     8. An Associated ICO shall pledge to. or assign in
m Usable Currencies, and for the account of that trust for. the Fund all Stock Warrants of com-
                                                                                                          rl  r
 ---pagebreak--- modities purchased with the proceeds of withdrawals       charged with losses, or used to discharge liabilities,
of cash deposits made under paragraph 1 of this art-      arising out of the operations or other activities of the
icle, or with the proceeds of loans obtained from the     other Account
 Fund, as security for the payment by the Associated
 ICO of its obligations to the Fund. The Fund shall                       C The Special Reserve
dispose of stocks only in accordance with article 17,
paragraphs 15 to 1/. Upon the sale of the com-               4. The Governing Council shall establish, out of
modities evidenced by such Stock Warrants, the As-        the earnings of the First Account, net of administra-
sociated ICO shall apply the proceeds of such sales       tive expenses, a Special Reserve, not exceeding 10
 first to repay the balance due on any loan to the        per cent of Directly Contributed Capital allocated to
Associated ICO from the Fund and then to meet its         the First Account, for meeting liabilities arising from
cash deposit obligation in accordance with para-          First Account borrowings, as provided for in article
 graph 1 of this article.                                 17, paragraph 11 Notwithstanding the provisions of
                                                         paragraphs 2 and 3 of this article, the Governing
    9. All Stock Warrants pledged to. or assigned in      Council shall decide by a Highly Qualified Majority
trust for, the Fund shall be valued, for the purposes    how to dispose of any net earnings not allocated to
of paragraph 2 of this article, on a basis specified in  the Special Reserve.
rules and regulations adopted by the Governing
Council.                                                                    D. General powers
                       Article 15                            5. In addition to any powers set forth elsewhere
                                                         in this Agreement, the Fund may exercise the follow-
                      BORROWINGS                         ing powers in connexion with its operations, subject
   The Fund may borrow in accordance with article        to and consistent with general operating principles
 16. paragraph 5 (a), provided that the total outstand-  and the terms of this Agreement:
ing amount of borrowings by the Fund for its First          (a) To borrow from Members, international finan-
Account operations shall not at any time exceed an       cial institutions and, for First Account operations, in
amount representing the aggregate of:                    capital markets, in accordance with the law of the
   (a) The uncalled portion of Payable Shares;           country in which the borrowing is made, provided
                                                         that the Fund shall have obtained the approval of
   (b) The uncalled Guarantee Capital and Guaran-        such country and of any country in the currency of
tees of participants in Associated ICOs under article    which the borrowing is denominated;
 14, paragraphs 4 to 7; and
                                                            (b) To invest funds at any time not needed for its
   (c) The Special Reserve established pursuant to       operations in such financial instruments as the Fund
article 16. paragraph 4.                                 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
                Chapter VI. Operations
                                                                      E General operating principles
                       Article 16                           6. The Fund shall operate according to the provi-
                  GENERAL PROVISIONS                     sions of this Agreement and any rules and regula-
                                                         tions which the Governing Council may adopt pursu-
                  A. Use of resources                    ant to article 20. paragraph 6.
    1. The resources and facilities of the Fund shall       7. The Fund shall make arrangements to ensure
be used exclusively to achieve its objectives and fulfil that the proceeds of any loan or grant made or par-
its functions.                                           ticipated in by the Fund is used only for the purposes
                                                         for which the loan or grant was made.
                   B. Two accounts                          8. Every security issued by the Fund shall bear
   2 The Fund shall establish, and maintain its re-      on its face a conspicuous statement to the effect that
sources in, two separate Accounts: a First Account,      it is not the obligation of any Member unless ex-
with resources as provided for in article 17, para-      pressly stated otherwise on the security.
graph 1, to contribute to the financing of commodity        9. The Fund shall seek to maintain reasonable
stocking; and a Second Account, with resources as        diversification in its investments.
provided for in article 18, paragraph 1, to finance          10. The Governing Council shall adopt suitable
measures in the field of commodities other than          rules and regulations for the procurement of goods
stocking, without jeopardizing the integral unity of     and services from the resources of the Fund. Such
the Fund. Such separation of Accounts shall be re-       rules and regulations shall conform, as a general rule.
flected in the financial statements of the Fund.         of the principles of international competitive bidding
   3. The resources of each Account shall be held,       among suppliers in the territories of Members, and
used, committed, invested or otherwise disposed of       shall give appropriate preference to experts, techni-
entirely separately from the resources of tne other      cians and suppliers from developing countries
Account. The resources of one Account shall not be       Members of the Fund.
                                                                                                            AC
 ---pagebreak---     11. The Fund shall establish close working rela-    with its ability to obtain finance and with the need to
tionships with international and regional financial     cover its costs of borrowing for funds lent to such
institutions and may, as is practicable, establish such Associated ICOs.
relationships with national entities of Members,           5. The Fund shall pay interest on all other cash
whether public or private, which are concerned with     balances of Associated ICOs at appropriate rates
investment of development funds in commodity de-        consistent with the return on its financial invest-
velopment measures. The Fund may participate in         ments, and taking into account the rate charged on
co-financing with such institutions.                    loans to Associated ICOs and the cost of borrowing
   11 In its operations and within its sphere of com-   for First Account operations.
petence, the Fund shall co-operate with ICBs and           6. The Governing Council shall adopt rules and
Associated ICOs in the protection of the interests of   regulations laying down the operating principles
developing importing countries, if such countries are   within which it shall determine interest rates charged
adversely affected by measures under the Integrated     and paid in accordance with paragraphs 4 and 5 of
Programme for Commodities.                              this article. In so doing the Governing Council shall
   13. The Fund shall operate in a prudent manner,      be guided by the need to maintain the financial via-
shall take actions it deems necessary' to conserve and  bility of the Fund and shall bear in mind the prin-
safeguard its resources ans shall not engage in cur-    ciple of non-discriminatory treatment as between
rency speculation.                                      Associated ICOs.
                                                                              C. The MFR
                       Article 17
                                                           7. An Association Agreement shall specify the
                  THE FIRST ACCOUNT                     MFR of the Associated ICO and the steps to be
                      A. Resources                      taken in the event of modification of its MFR.
                                                           8. The MFR of an Associated ICO shall include
   1. The resources of the First Account shall consist  the acquisition cost of stocks, determined by multi-
of:                                                     plying the authorized size of its stocks as specified in
   (a) Subscriptions by Members of Shares of            the Association Agreement by an appropriate pur-
Directly Contributed Capital, except such part of       chase price as determined by that Associated ICO. In
their subscriptions as may be allocated to the Second   addition, an Associated ICO may include in its MFR
Account in accordance with article 10. paragraph 3;     specified carrying costs, exclusive of interest charges
   (b) Cash deposits from Associated ICOs pursuant      on loans, in an amount not exceeding 20 per cent of
to article 14. paragraphs 1 to 3;                       the acquisition cost.
   (c) Guarantee Capital, cash in lieu of Guarantee         D. Obligations to the Fund of Associated ICOs
Capital and Guarantees provided by participants in                       and of their participants
Associated ICOs pursuant to article 14, paragraphs 4       9. An Association Agreement shall provide, inter
to 7;                                                   alia:
  (d) Voluntary contributions allocated to the First       (a) For the manner in which the Associated ICO
Account;                                                and its participants shall undertake the obligations to
  (e) Proceeds of borrowings pursuant to article 15;    the Fund specified in article 14 in respect of deposits.
  (/) Net earnings which may accrue from oper-          Guarantee Capital, cash in lieu of Guarantee Ca-
ations of the First Account;                            pital, and Guarantees, and Stock Warrants:
  (g) The Special Reserve referred to in article 16.       (b) That the Associated ICO shall not borrow from
paragraph 4;                                            any third party for its buffer stocking operations, un-
                                                        less the Associated ICO and the Fund have reached
  (h) Stock Warrants from Associated ICOs pursuant      mutual agreement on a basis by the Executive Board:
to article 14, paragraphs 8 and 9.
                                                           (c) That the Associated ICO shall at all times be
                                                        responsible, and liable to the Fund, for the main-
       B. Principles of First Account operations        tenance and preservation of stocks for which Stock
  1 The Executive Board shall approve the terms         Warrants have been pledged to. or assigned in trust
of borrowing arrangements for First Account oper-       for. the Fund, and shall maintain adequate insurance
ations.                                                 on, and appropriate security and other arrangements
                                                        with respect to, the holding and handling of such
  3. Directly Contributed Capital allocated to the      stocks;
First Account shall be employed:
  (a) To enhance the creditworthiness of the Fund in       (</) That the Associated ICO shall enter into ap-
respect of its First Account operations;                propriate credit agreements with the Fund specifying
                                                         the terms and conditions of any loan from the Fund
  (b) As working capital, to meet the short-term         to that Associated ICO, including the arrangements
Liquidity needs of the First Account; and                for repayment of principal and payment of interest.
  (c) To provide revenues to cover the administrative      (e) That the Associated ICO shall, as appropriate.
expenses of the Fund.                                   keep the Fund informed of conditions and develop-
  4. The Fund shall charge interest on loans made        ments in the commodity markets with which the As-
to Associated ICOs at rates as low as are consistent    sociated ICO is concerned.
                                                                                                   -'-;
 ---pagebreak---         E Obligations of the Fund to Associated ICOs                 (c) Proceeds of subscriptions of Payable Shares;
        10. An Association Agreement shall also provide,             (d) Proceeds of pro rata calls of Guarantee CapitJ
    inter alia:                                                  and Guarantees provided by participants in a de-
       (j)That. subject to the provisions of paragraph 11        faulting Associated ICO by virtue of their participa-
    (a) of this article, the Fund shall provide for with-        tion in other Associated ICOs.
    drawal by the Associated ICO on demand, in whole              Payments made by participants in Associated ICOs
    or in part of the amounts deposited pursuant to art-         in accordance with (d) above shall be reimbursed by
    icle 14, paragraphs 1 and 2;                                 the Fund as soon as possible from resources provided
                                                                 in accordance with paragraphs 11, 15, 16 and 17 of
       (b) That the Fund shall make loans to the Asso-           this article; any such resources remaining after such
    ciated ICO in an aggregate principal amount not              reimbursement shall be used to reconstitute in re-
    exceeding the sum of the uncalled Guarantee Cap-             verse order, the resources referred to in (a), (b) and
    ital, cash in lieu of Guarantee Capital, and Guaran-         (c) above.
    tees provided by participants in the Associated ICO
    by virtue of their participation in that Associated              13. The proceeds of pro rata calls of all
    ICO pursuant to article 14, paragraphs 4 to 7;               Guarantee Capital and Guarantees shall be used by
                                                                 the Fund, following recourse to the resources listed
       (c) That withdrawals and borrowings by each As-           in paragraph 12 {a), (b) and (c) of this article, to meet
    sociated ICO pursuant to subparagraphs (a) and (b)           any of its liabilities other than liabilities arising from
    above shall be used only to meet stocking costs in-          the default of an Associated ICO.
    cluded in the MFR in accordance with paragraph 8
    of this article. Not more than any amount included               14. To enable the Fund to meet any liabilities
    in the MFR of each Associated ICO to meet specified          which may be outstanding after recoursé to the re-
   carrying costs in accordance with paragraph 8 of this         sources mentioned in paragraphs 12 and 13 of this
    article shall be used to meet such costs;                    article, the Shares of Directly Contributed Capital
                                                                 shall be increased by the amount needed to meet
      (d) That, except as provided for in paragraph 11 (c)       such liabilities and the Governing Council shall be
    of this article, the Fund shall promptly make Stock          convened in an emergency session to decide upon the
    Warrants available to the Associated ICO for use in          modalities for such increase.
   its buffer stock sales;
      (e) That the Fund shall respect the confidentiality               H. Disposal by the Fund offorfeited stocks
   of information provided by the Associated ICO.
                                                                     15. The Fund shall be free to dispose of com-
                F. Default of Associated ICOs                    modity stocks forfeited to it by a defaulting Asso-
                                                                 ciated ICO pursuant to paragraph 11 of this article.
      11. In the event of imminent default by an Asso-           provided that the Fund shall seek to avoid distress
   ciated ICO on any of its borrowings from the Fund,            sales of such stocks by postponing the sales to the
   the Fund shall consult with that Associated ICO on            extent consistent with the need to avoid default on
   measures to avoid such a default. To meet any de-             the Fund's own obligations.
   fault by an Associated ICO. the Fund shall have re-               16. The Executive Board shall at appropriate in-
   course to the following resources, in the following           tervals review disposals of stocks to which the Fund
   order, up to the amount of the default:                       has recourse in accordance with paragraph 11 (c) of
      (a) Any cash of the defaulting Associated ICO held         this article, in consultation with the Associated ICO
   in the Fund;                                                  concerned, and shall decide by a Qualified Majority
      (b) Proceeds of pro rata calls of Guarantee Capital        whether to postpone such disposals.
   and Guarantees provided by participants in the de-               17. The proceeds of such disposals of stocks shall
   faulting Associated ICO by virtue of their participa-         be used first to meet any liabilities of the Fund in-
   tion in that Associated ICO;                                  curred in its First Account borrowings in respect of
      (c) Subject to paragraph 15 of this article, any           the Associated ICO concerned, and then to reconsti-
   Stock Warrants pledged to, or assigned in trust for,          tute, in the reverse order, the resources listed under
   the Fund by the defaulting Associated ICO.                    paragraph 12 of this article.
   G. Liabilities arising from First Account bommings
      11 In the event that the Fund cannot otherwise                                     Article 18
   meet its liabilities in respect of its First Account bor-
   rowings, it shall meet such liabilities out of the fol-                        THE SECOND ACCOUNT
   lowing resources in the following order; provided                                   A. Resources
   that if an Associated ICO shall have failed; to meet
   its obligations towards the Fund, the Fund shall have            1. The resources of the Second Account shall
   already, to the fullest extent possible, made use of         consist of:                                           i
   the resources referred to in paragraph 11 of this ar-                                                              i
   ticle:                                                          (a) The part of Directly Contributed Capital allo-
                                                                cated to the Second Account in accordance with ar-
      (a) The Special Reserve;                                  ticle 10, paragraph 3;
      (b) Proceeds of subscriptions of Paid-in Shares al-          (b) Voluntary contributions made to the Second
   located to the First Account;                                Account;
                                                             10
                                                                                                                   / 1^
-1
 ---pagebreak---    (c) Such net income as may accrue from time to         the Executive Board by a Qualified Majority in ac-
time in the Second Account;                              cordance with this Agreement and any rules and re-
   (d) Borrowings;                                       gulations for the operations of the Fund adopted
                                                         pursuant thereto.
   (e) Any other resources placed at the disposal of,
received or acquired by. the Fund for its Second Ac-        (/) For the appraisal of project proposals pre-
count operations pursuant to this Agreement.             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-
       B. Financial limits for the Second Account        vices of other competent agencies and consultants
                                                         specialized in the field. The Fund may also entrust to
   2. ' The aggregate amount of loans and grants         such institutions the administration of loans or grants
made, and of participations therein, by the Fund         and the supervision of the implementation of pro-
through its Second Account operations shall not          jects financed by it. Such institutions, agencies and
exceed the aggregate amount of the resources of the      consultants shall be selected according to rules and
Second Account.                                          regulations adopted by the Governing Council.
                                                            (g) In making or participating in any loan, the
      C. Principles of Second Account operations         Fund shall pay due regard to the prospects that the
   3. The Fund may make or participate in loans          borrower and any guarantor shall be in a position to
and. except for that portion of the Directly Con-        meet their obligations to the Fund in respect of such
tributed Capita] allocated to the Second Account,        transactions.
grants for the financing of measures in the field of        (A) The Fund shall enter into an agreement with
commodities other than stocking from the resources       the ICB, an agency thereof, the Member or Members
of the Second Account, subject to the provisions of      concerned, specifying the amounts, terms and condi-
this Agreement and in particular to the following        tions of the loan or grant and providing, inter alia.
terms and conditions:                                    for any governmental or other appropriate guaran-
   (a) The measures shall be commodity development       tees in accordance with this Agreement and with any
measures, aimed at improving the structural condi-       rules and regulations established by the Fund.
tions in markets and at enhancing the long-term             (0 Funds to be provided under any financing
competitiveness and prospects of particular com-         operation shall be made available to the recipient
modities. Such measures shall include research and       only to meet expenses in connexion with the project
development, productivity inprovements. marketing        as they are actually incurred.
and measures designed to assist, as a rule by means
of joint financing or through technical assistance,         (/') The Fund shall not refinance projects initially
vertical diversification, whether undetaken alone, as    financed from other sources.
in the case of perishable commodities and other com-        (k) Loans shall be repayable in the currency or
modities whose problems cannot be adequately             currencies loaned.
solved by stocking, or in addition to and in support        (/) The Fund shall as far as possible avoid duplica-
of stocking activities.                                  tion of its Second Account activities with existing in-
   (b) The measures shall be jointly sponsored and       ternational and regional financial institutions, but
followed up by producers and consumers within the        may participate in co-financing with such institu-
framework of an ICB.                                     tions.
   (c) The operations of the Fund in the Second             (m)In determining its priorities for the use of the
Account may inke the form of loans and grants to an      resources of the Second Account, the Fund shall give
ICB or an agency thereof, or to a Member or Memb-        due emphasis to commodities of interest to the least
ers designated by such ICB on terms and conditions       developed countries.
which the Executive Board decides are appropriate,          (n) In considering projects for the Second Account
having regard to the economic situation of the ICB       due emphasis shall be given to the commodities of
or the Member or Members concerned and the na-           interest to developing countries, particularly those of
ture and requirements of the proposed operation.         small producers-exporters.
Such loans may be covered by governmental or other
suitable guarantees from the ICB or the Member or           (o) The Fund shall pay due regard to desirability
Members designated by such ICB.                          of not using a disproportionate amount of its Second
                                                         Account resources for the benefit of any particular
  (d) The ICB sponsoring a project to be financed by     commoditv.
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               D. Borrowing for the Second Account
and the agency responsible for its execution.
   (e) Before any loan or grant is made, the Manag-         4. The Fund's borrowing for the Second Ac-
ing Director shall present to the Executive Board a      count, under article 16. paragraph 5 (a), shall be in
detailed appraisd of the proposal along with his re-     accordance with rules and regulations to be adopted
commendations and the advice of the Consultative         by the Governing Council and shall be subject to the
Committee, as appropriate, in accordance with art-       following:
icle 25, paragraph 2. Decisions with regard to the          (a) Such borrowing shall be on concessional terms
selection and approval of proposals shall be made by     to be specified in rules and regulations to be adopted
                                                      11
                                                                                                            V
 ---pagebreak--- by the Fund and its proceeds shall not be re-lent on          (J) To take decisions pursuant to article 16. para-
terms which are more concessional than those on             graph 4, relating to net earnings after provision for
which they are acquired.                                    the Special Reserve;
  (b) For the purposes of accounting, the proceeds of         (k) To approve proposed Association Agreements;
the borrowing shall be placed in a loan account               (/) To approve proposed agreements with other in-
whose resources shall be held, used, committed, in-         ternational organizations in accordance with article
vested or otherwise disposed of, entirely separately        29, paragraphs 1 and 2;
from other resources of the Fund, including the other
resources of the Second Account                               (m)To decide on replenishments of the Second Ac-
                                                            count in accordance with article 13.
  (c) The other resources of the Fund, including
other resources of the Second Account, shall not be           4. The Governing Council shall hold an annual
charged" with losses, or used to discharge liabilities,    meeting and such special meetings as it may decide,
arising out of operations or other activities of such a    or as are called for by 15 Governors holding at least
loan account                                               one fourth of the total voting power, or as requested
                                                            by the Executive Board.
  (d) The borrowings for the Second Account shall
be approved 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-
      Chapter VII. Organization and management             tions consistent with this Agreement as it deems
                                                           necessary for the conduct of the business of the
                                                           Fund.
                      Article 19
                                                              7. Governors and alternates shall serve as such
               STRUCTURE OF THE FUND                       without compensation from the Fund, unless the
  The Fund shall have a Governing Council, an Exe-         Governing Council decides by a Qualified Majority
cutive Board, a Managing Director and such staff as        to pay them reasonable per diem and travel expenses
may be necessary to carry out its functions.               incurred in attending meetings.
                                                              8. At each annual meeting, the Governing Coun-
                      Article 20                           cil shall elect a Chairman from among the Gover-
                                                           nors. The Chairman shall hold office until the elec-
                 GOVERNING COUNCIL                         tion of his successor. He may be re-elected for one
   1. All the powers of the Fund shall be vested in        successive term.
the Governing Council.
   2. Each Member shall appoint one Governor and                                  Article 21
one alternate to serve on the Governing Council at                   VOTING IN THE GOVERNING COUNCIL
the pleasure of the appointing Member. The alter-
nate may participate in meetings but may vote only            1. Votes in the Governing Council shall be dis-
in the absence of his principal.                           tributed among Member States in accordance with
  3. The Governing Council may delegate to the             schedule D.
Executive Board authority to exercise any powers of           2. Decisions in the Governing Council shall.
the Governing Council, except the power                    whenever possible, be taken without vote.
  (a) To determine the fundamental policy of the              3. Except as otherwise provided in this Agree-
Fund;                                                      ment, all matters before the Governing Council shall
  (b) To agree on terms and conditions for accession       be decided by a Simple Majority.
to this Agreement in accordance with article 56;              4. The Governing Council may by rules and re-
  (c) To suspend a Member;                                 gulations establish a procedure whereby the Execu-
                                                           tive Board may obtain a vote of the Council on a
  (a) To increase or decrease the Shares of Directly       specific question without calling a meeting of the
Contributed Capital:                                       council.
  (e) To adopt amendments to this Agreement;
  if) To terminate the operations of the Fund and to                              Article 22
distribute the Fund's assets in accordance with                               EXECUTIVE   BOARD
chapter IX;
  (g) To appoint the Managing Director;                       1. The Executive Board shall be responsible for
                                                           the conduct of the operations of the Fund and shall
  (A) To decide appeals by Members on decisions            report to the Governing Council thereon. For this
made by the Executive Board concerning the inter-          purpose the Executive Board shall exercise the pow-
pretation or application of this Agreement;                ers accorded to it elsewhere in this Agreement or de-
  (0 To approve the audited annual statement of ac-        legated to it by the Governing Council. In the exer-
counts of the Fund;                                        cise of any delegated powers, the Executive Board
                                                        12
                                                                                                             Zo
 ---pagebreak--- shall take decisions by the same levels of majority            2. The Managing Director shall conduct, under
that would apply were such powers retained by the           the direction of the Governing Council and the Exe-
Governing Council.                                          cutive Board, the ordinary business of the Fund.
   2. The Governing Council shall elect 28 Execu-              3. The Managing Director shall be the chief exe-
tive Directors and one alternate to each Executive          cutive officer of the Fund and the Chairman of the
Director in the manner specified in schedule E.             Executive Board, and shall participate in its meetings
   3. Each Executive Director and alternate shall be        without the right to vote.
elected for a term of two years and may be re-                4. The term of office of the Managing Director
elected. They shall continue in office until their suc-     shall be four years and he may be reappointed for
cessors are elected. An alternate may participate in        one successive term. However, he shall cease to hold
meetings but may vote only in the absence of his            office at any time the Governing Council so decides
principal.                                                  by a Qualified Majority.
  4. The Executive Board shall function at the                 5. The Managing Director shall be responsible
headquarters of the Fund and shall meet as often as         for the organization, appointment and dismissal of
the business of the Fund may require.                       the staff pursuant to staff rules and regulations to be
  5. (a) The Executive Directors and their alter-           adopted by the Fund. In appointing the staff the
nates shall serve without remuneration from the             Managing Director shall, subject to the paramount
Fund. The Fund may, however, pay them reasonable            importance of securing the highest standards of
per diem and travel expenses incurred in attending          efficiency and of technical competence, pay due re-
meetings.                                                   gard to recruiting personnel on as wide as geographi-
                                                            cal basis as possible.
  (b) Notwithstanding subparagraph (a) above, the
Executive Directors and their alternates shall be re-          6. The Managing Director and staff, in the dis-
munerated by the Fund if the Governing Council              charge of their functions, shall owe their duty enti-
decides by a Qualified Majority that they shall serve       rely to the Fund and to no other authority. Each
on a full-time basis.                                       Member shall respect the international character of
                                                            this duty and shall refrain from all attempts to in-
  6. A quorum for any meeting of the Executive              fluence the Managing Director or any of the staff in
Board shall be constituted by a majority of Executive       the discharge of their functions.
Directors holding not less than two thirds of the total
voting power.
  7. The Executive Board may invite the executive                                  Article 25
heads of Associated ICOs and of ICBs to participate,
                                                                          CONSULTATIVE COMMITTEE
without vote, in the deliberations of the Executive
Board.                                                        1. (a) The Governing Council shall, taking into
  8. The Executive Board shall invite the Secre-           account the need to make the Second Account opera-
tary-General of UNCTAD to attend the meetings of           tional as soon as possible, establish as early as poss-
the Executive Board as an observer.                        ible a Consultative Committee, in accordance with
                                                           rules and regulations to be adopted by the Govern-
  9. The Executive Board may invite the represen-          ing Council, to facilitate the operations of the Second
tatives of other interested international bodies to at-    Account
tend its meetings as observers.
                                                              (b) In the composition of the Consultative Com-
                                                           mittee, due regard shall be paid to the need for a
                           Article 23                      broad and equitable geographical distribution, in-
                                                           dividual expertise in commodity development issues,
           V O T I N G IN T H E E X E C U T I V E BOARD
                                                           and the desirability of a broad representation of in-
   1 Each Executive Director shall be entitled to          terests, including of voluntary contributors.
cast the number of votes attributable to the Members          2. The functions of the Consultative Committee
he represents. These votes need not be cast as a unit      shall be:
  2. Decisions in the Executive Board shall,                  (a) To advise the Executive Board on technical and
whenever possible, be taken without vote.                  economic aspects of the programmes of measures
  3. Except as otherwise provided in this Agree-           proposed by ICBs to the Fund for financing and co-
ment, all matters before the Executive Board shall be      financing through the Second Account and on the
decided by a Simple Majority.                              priorities to be attached to such proposals;
                                                              (b)To advise, at the request of the Executive
                           Article 24                      Board, on specific aspects connected with the apprai-
                                                           sal of particular projects being considered for finan-
            MANAGING DIRECTOR AND STAFF                    cing through the Second Account;
   1. The Governing Council shall by a Qualified              (c) To advise the Executive Board on guidelines
Majority appoint the Managing Director. If the ap-         and criteria for determining the relative priorities
pointee is, at the time of his appointment, a Gover-       among measures within the scope of the Second Ac-
nor or an Executive Director, or an alternate, he shall    count, for appraisal procedures, for making grants
resign from such position prior to taking up his           and loan assistance, and for co-financing with other
duties as Managing Director.                               international financial institutions and other entities:
                                                        13
                                                                                                              7
 ---pagebreak---   (d) To comment on reports from the Managing                 3. The Fund may establish working arrange-
Director on the supervision, implementation and            ments with the bodies refereed to in paragraph 2 of
evaluation of projects being financed through the Se-      this article, as may be decided by the Executive
cond Account.                                              Board.
                       Article 26
           BUDGETARY AND AUDIT PROVISIONS                         Chapter VIII. Withdrawal and suspension
                                                             of membership and withdrawal of Associated ICOs
   1. The administrative expenses of the Fund shall
be covered by revenues of the First Account.                                       Article 30
  1 The Managing Director shall prepare an an-
nual administrative budget, which shall be consid-                         WITHDRAWAL OF MEMBERS
ered by the Executive Board and be transmitted, to-            A Member may at any time, except as provided for
gether with its recommendations, to the Governing           in article 35, paragraph 2 (b). and subject to the pro-
Council for approval.                                       visions of article 32, withdraw from the Fund by
  3 The Managing Director shall arrange for an              transmitting a notice in writing to the Fund. Such
annual independent and external audit of the ac-            withdrawal shall become effective on the date
counts of the Fund. The audited statement of                specified on the notice, which shall be not less than
acoounts, after consideration by the Executive              twelve months after receipt of the notice by the
Board, shall be transmitted, together with its recom-       Fund.
mendations, to the Governing Council for approval.
                                                                                   Article 31
                       Article 27                                          SUSPENSION OF MEMBERSHIP
              LOCATION OF HEADQUARTERS                         1. If a Member fails to fulfil any of its financial
  The headquarters of the Fund shall be located in         obligations to the Fund, the Governing Council may.
the place decided upon by the Governing Council by          except as provided for in article 35, paragraph 2 (b),
a Qualified Majority, if possible at its first annual       by a Qualified Majority, suspend its membership.
meeting. The Fund may, by a decision of the                 The Member so suspended shall automatically cease
Governing Council, establish other offices, as neces-       to be a Member one year from the date of its suspen-
sary, in the territory of any Member.                       sion, unless the Governing Council decides to extend
                                                            the suspension for a further period of one year.
                       Article 28                              2. When the Governing Council is satisfied that
                                                            the suspended Member has fulfilled its financial obli-
                PUBLICATION OF REPORTS                     gations to the Fund, the Council shall restore the
                                                            Member to good standing.
  The Fund shall issue and transmit to Members an
annual report containing an audited statement of ac-           3. While under suspension, a Member shall not
counts. After adoption by the Governing Council,           be entitled to exercise any rights under this Agree-
such report and statement shall also be transmitted        ment, except the right of withdrawal and to arbitra-
for information to the General Assembly of the              tion during the termination of the Fund's operations,
United Nations, to the Trade and Development               but shall remain subject to compliance with all its
Board of UNCTAD, to Associated ICOs and to other           obligations under this Agreement.
interested international organizations.
                                                                                   Article 32
                       Article 29                                           SETTLEMENT OF ACCOUNTS
   RELATIONS WITH THE UNITED NATIONS AND OTHER                 1. When a Member ceases to be a Member, it
                     ORGANIZATIONS
                                                           shall remain liable thereafter to meet all calls made
   1. The Fund may enter into negotiations with the        by the Fund before, and payments outstanding as of.
United Nations with a view to concluding an agree-         the date on which it ceased to be a Member in re-
ment to bring the Fund into relationship with the          spect of its obligations to the Fund. It shall also re-
United Nations as one of the specialized agencies re-      main liable to meet its obligations in respect of its
ferred to in Article 57 of the Charter of the United       Guarantee Capital, until arrangements satisfactory to
Nations. Any agreement concluded in accordance             the Fund have been made which comply with article
with Article 63 of the Charter shall require the ap-        14, paragraphs 4 to 7. Each Association Agreement
proval of the Governing Council, upon the recom-           shall provide that, if a participant in the respective
mendation of the Executive Board.                          Associated ICO ceases to be a Member, the Asso-
  2. The Fund may co-operate closely with UNC-             ciated ICO shall ensure that such arrangements are
TAD and the organizations of the United Nations            completed not later than the date on which the
system, other intergovernmental organizations, inter-      Member ceases to be a Member.
national financial institutions, non-governmental or-         2. When a Member ceases to be a Member, the
ganizations and governmental agencies concerned            Fund shall arrange for the repurchase of its Shares
with related fields of activities and, if deemed neces-    consistent with article 16, paragraphs 2 and 3, as a
sary, enter into agreements with such bodies.              part of the settlement of accounts with that Member,
                                                        14
                                                                                                               2 L
 ---pagebreak---  and shall cancel its Guarantee Capital provided that         Fund and of its Members under this Agreement shall
 the obligations and requirements specified in para-          continue unimpaired, except that:
 graph 1 of this article have been met. The repurchase           (a) The Fund shall not be obliged to provide for
 price of the Shares shall be value shown by the books        withdrawal on demand of Associated ICO deposits
of the Fund as at the date the Member ceases to be            in accordance with article 17, paragraph 10 (a), or to
a Member, provided that any amount thus due to the            make new loans to Associated ICOs in accordance
 Member may be applied by the Fund to any liability           with article 17, paragraph 10 (6);
outstanding to the Fund from that Member pursuant
to paragraph 1 of this article.                                  (b) No Member may withdraw or be suspended
                                                              after the decision to terminate has been taken.
                        Article 33                                                    Article 36
           WITHDRAWAL OF ASSOCIATED      ICOs                    SETTLEMENT OF OBLIGATIONS GENERAL PROVISIONS
   1. An Associated ICO may. subject to the terms               1. The Executive Board shall make such arrange-
and conditions of the Association Agreement, with-          ments as are necessary to ensure the orderly realiza-
draw from association with the Fund, provided that           tion of the Fund's assets. Before making any pay-
such Associated ICO shall repay all outstanding-            ments to creditors holding direct claims, the Execu-
loans received from the Fund before the date on              tive Board shall, by a Qualified Majority, make such
which such withdrawal becomes effective. The Asso-          reserves or arrangements as are necessary, in its sole
ciated ICO and its participants shall remain liable         judgement, to ensure a distribution to holders of con-
thereafter only to meet calls made by the Fund be-           tingent claims pro rata with creditors holding direct
fore that date in respect of their obligations to the       claims.
Fund.
                                                                2. No distribution of assets shall be made in ac-
   2. When an Associated ICO ceases to be asso-             cordance with this chapter until:
ciated with the Fund, the Fund shall, after the fulfil-
ment of the obligations specified in paragraph 1 of             (a) Ail liabilities of the Account in question have
this article:                                               been discharged or provided for; and
   (a) Arrange for the refund of any cash deposit and           (b) The Governing Council has decided to make a
for the return of any Stock Warrants it holds for the       distribution by a Qualified Majority.
account of that Associated ICO;                                 3. Following a decision of the Governing Council
   (b) Arrange for the refund of any cash deposited in      under paragraph 2 (b) of this article, the Executive
lieu of Guarantee Capital, and cancel relevant              Board shall make successive distributions of any re-
Guarantee Capital and Guarantees.                           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
       Chapter IX. Suspension and termination               be effected at such times and in such currencies or
      of operations and settlement of obligations           other assets as the Governing Council shall deem fair
                                                            and equitable.
                        Article 34
         TEMPORARY SUSPENSION OF OPERATIONS                                           Article 37
   In an emergency, the Executive Board may tem-                   SETTLEMENT OF OBLIGATIONS: FIRST ACCOUNT
porarily suspend such of the Fund's operations as it            1. Any loans outstanding to Associated ICOs in
considers necessary pending an opportunity for              respect of First Account operations at the time of a
further consideration and action by the Governing           decision to terminate the Fund's operations shall be
Council.                                                    repaid by the Associated ICOs concerned within 12
                                                            months of the decision to terminate. On repayment
                        Article 35                          of such loans. Stock Warrants pledged to, or assigned
                                                            in trust for, the Fund in respect of those loans shall
              TERMINATION OF OPERATIONS                     be returned to the Associated ICOs.
   1. The Governing Council may terminate the                  2. Stock Warrants pledged to. or assigned in trust
Fund's operations by a decision taken by a vote of          for, the Fund in respect of commodities acquired
two thirds of the total number of Governors holding         with cash deposits or Associated ICOs shall be re-
not less than three fourths of the total voting power.      turned to such Associated ICOs in a manner consis-
Upon such termination, the Fund shall forthwith             tent with the treatment of cash deposits and sur-
cease all activities, except those necessary for the or-    pluses specified in paragraph 3 (b) of this article, to
derly realization and conservation of its assets and        the extent that such Associated ICOs have fully dis-
the settlement of its outstanding obligations.              charged their obligations to the Fund.
   2. Until final settlement of its obligations and            3. The following liabilities incurred by the F <no
final distribution of its assets, the Fund shall remain     in respect of First Account operations shall be dis-
in existence, and all rights and obligations of the         charged pari passu through the use of the asse:s of
                                                         15
                                                                                                       <S
 ---pagebreak---  the First Account, in accordance with article 17,                  Chapter X. Status, privileges and immunities
 paragraphs 12 to 14:
    (a) Liabilities to creditors of the Fund; and                                     Article 40
    (b) Liabilities to Associated ICOs in respect of cash                             PURPOSES
 deposits and surpluses held in the Fund in accor-
 dance with article 14, paragraphs 1, 2. 3 and 8, to the         To enable the Fund to fulfil the functions with
 extent that such Associated ICOs have fully dis-              which it is entrusted, the status, privileges and im-
charged their obligations to the Fund.                         munities set forth in this chapter shall be accorded to
                                                               the Fund in the territory of each Member.
    4. Distribution of any remaining assets of the
 First Account shall be made on the following basis
 and in the following order:                                                          Article 41
    (a) Amounts up to the value of any Capital called                        LEGAL STATUS OF THE FUND
 from and paid by Members in accordance with ar-                  The Fund shall possess full juridical personality,
 ticle 17, paragraphs 12 (d) and 13. shall be dis-             and. in particular, the capacity to conclude interna-
 tributed to such Members pro rata to their shares in          tional agreements with States and international
 the total value of such Guarantee Capital called and         organizations, to enter into contracts, to acquire and
 paid;
                                                               dispose of immovable and movable property, and to
    (b) Amounts up to the value of any Guarantees              institute legal proceedings.
called from and paid by participants in Associated
 ICOs which are not Members in accordance with ar-                                    Article 42
 ticle 17. paragraphs 12 (d) and 13, shall be dis-
 tributed to such participants pro rata to their shares                IMMUNITY FROM JURIDICAL PROCEEDINGS
 in the total value of such Guarantees called and paid.
                                                                  1. The Fund shall enjoy immunity from every
    5. Distribution of any assets of the First Account        form of legal process, except for actions which may
 remaining after the distributions provided for in            be brought against the Fund:
paragraph 4 of this article shall be made to Members
pro rata to their subscriptions of Shares of Directly            (a) By lenders of funds borrowed by the Fund with
Contributed Capital allocated to the First Account.           respect to such funds;
                                                                 (b) By buyers or holders of securities issued by the
                                                              Fund with respect to such securities; and
                         Article 38
                                                                 (c) By assignees and successors in interest thereof
      SETTLEMENT OF OBLIGATIONS: SECOND ACCOUNT               with respect to the aforementioned transactions.
    1. Liabilities incurred by the Fund in respect of         Such actions may be brought only before courts of
Second Account operations shall be discharged                 competent jurisdiction in places in which the Fund
through the use of the resources of the Second Ac-            has agreed in writing with the other party to be sub-
count, pursuant to article 18, paragraph 4.                   ject However, if no provision is made as to the
                                                              forum, or if an agreement as to the jurisdiction of
    2. Distribution of any remaining assets of the Se-        such courts is not effective for reasons other than the
cond Account shall be made first to Members up to             fault of the party bringing legal action against the
the value of their subscriptions of Shares of Directly        Fund, then such action may be brought before a
Contributed Capital allocated to that Account pur-            competent court in the place in which the Fund has
suant to article 10. paragraph 3, and then to contribu-       its headquarters or has appointed an agent for the
 tors to that Account pro rata to their share in the total    purpose of accepting service or notice of process.
amount contributed pursuant to article 13.
                                                                 2. No action shall be brought against the Fund
                                                              by Members, Associated ICOs, ICBs. or their partici-
                         Article 39                           pants, or persons acting for or deriving claims from
        SETTLEMENT OF OBLIGATIONS: OTHER ASSETS
                                                              them, except in cases as in paragraph 1 of this article.
                        OF THE FUND
                                                              Nevertheless, Associated ICOs, ICBs, or their partici-
                                                              pants shall have recourse to such special procedures
    1. Any other asset shall be realized at a time or         to settle controversies between themselves and the
times to be decided by the Governing Council, in the          Fund as may be prescribed in agreements with the
light of recommendations made by the Executive                Fund, and, m the case of Members, in this Agree-
Board and in accordance with procedures deter-                ment and in any rules and regulations adopted by
mined by the Executive Board by a Qualified Major-            the Fund.
ity.                                                             3. Notwithstanding the provisions of paragraph 1
    2. Proceeds realized by the sale of such assets           of this article, property and assets of the Fund,
shall be used to discharge pro rata the liabilities re-       wherever located and by whomsoever held, shall be
ferred to in article 37, paragraph 3. and article 38,         immune from search, any form of taking, foreclo-
paragraph 1. Any remaining assets shall be dis-               sure, seizure, all forms of attachment, injunction, or
tributed first on the basis and in the order specified        other judicial process impeding disbursement of
in article 37, paragraph 4, and then to Members pro           funds or covering or impeding disposition of any
rata to their subscriptions of Shares of Directly Con-        commodity stocks or Stock Warrants, and any other
tributed Capital.                                             interlocutory measures before the delivery of a final
                                                           16
                                                                                                               2,1]
 ---pagebreak--- judgement against the Fund by a court having juris-            (c) Shall be granted the same treatment in respect
diction in accordance with paragraph 1 of this article.     of travelling facilities as is accorded by each Member
The Fund may agree with its creditors to limit the          to representatives, officials and employees of com-
property or assets of the Fund which may be subject         parable rank of other international financial institu-
 to execution in satisfaction of a final judgement          tions of which it is a member.
                            Article 43
                                                                                     Article 48
        IMMUNITY OF ASSETS FROM OTHER ACTIONS
                                                                           IMMUNITIES FROM TAXATION
   "The property and assets of the Fund, wherever lo-
cated and by whomsoever held, shall be immune                  1. Within the scope of its official activities, the
from search, requisition, confiscation, expropriation       Fund, its assets, property, income and its operations
and any other from of interference or taking whether        and transactions authorized by this Agreement shall
by executive or legislative action.                         be exempt from all direct taxation and from all cus-
                                                            toms duties on goods imported or exported for its
                            Article 44                      official use, provided that this shall not prevent any
                                                            Member from imposing its normal taxes and customs
                      IMMUNITY OF ARCHIVES                  duties on commodities which originate from the ter-
                                                            ritory of such Member and which are forfeited to the
   The archives of the Fund, wherever located, shall        Fund through any circumstance. The Fund shall not
be inviolable.                                              claim exemption from taxes which are no more than
                                                            charges for services rendered.
                            Article 45                         2. When purchases of goods or services of sub-
         F R E E D O M  OF ASSETS F R O M RESTRICTIONS     stantial value necessary for the official activities of
                                                            the Fund are made by or on behalf of the Fund, and
   To the extent necessary to carry out the operations      when the price of such purchases includes taxes or
provided for in this Agreement and subject to the           duties, appropriate measures shall, to the extent poss-
provisions of this Agreement all property and assets        ible and subject to the law of the Member concerned.
of the Fund shall be free from restrictions, regula-        be taken by such Member to grant exemption from
tions, controls, and mora tori a of any nature.            such taxes or duties or provide for their reimburse-
                                                           ment Goods imported or purchased under an
                            Article 46                      exemption provided for in this article shall not be
                                                           sold or otherwise disposed of in the territory of the
               PRIVILEGE FOR COMMUNICATIONS                 Member which granted the exemption, except under
   As far as may be compatible with any international      conditions agreed with that Member.
convention on telecommunications in force and con-            3. No tax shall be levied by Members on or in
cluded under the auspices of the International Tele-       respect of salaries and emoluments paid or any other
communication Union to which a Member is a party,          form of payment made by the Fund to Governors.
the official communications of the Fund shall be ac-       Executive Directors, their alternates, members of the
corded by each Member the same treatment that is           Consultative Committee, the Managing Director and
accorded to the official communications of other           staff, as well as experts performing missions for the
Members.                                                   Fund, who are not their citizens, nationals or sub-
                                                           jects.
                             Article 47                       4. No taxation of any kind shall be levied on any
                                                           obligation or security issued or guaranteed by the
  IMMUNITIES AND PRIVILEGES OF SPECIFIED INDIVIDUALS       Fund, including any dividend or interest thereon, by
                                                           whomsoever held:
   All Governors, Executive Directors, their alter-
nates, the Managing Director, members of the Con-             (a) Which discriminates against such obligation or
sultative Committee, experts performing missions for       security solely because it is issued or guaranteed by
the Fund, and the staff, other than persons in domes-      the Fund; or
tic service of the Fund:                                      (b) If the sole jurisdictional basis for such taxation
   (a) Shall be immune from legal process with res-        is the place or currency in which it is issued, made
pect to acts performed by them in their official cap-      payable or paid, or the location of any office or place
acity except when the Fund waives such immunity;           of business maintained by the Fund.
   (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-                                       Article 49
munities from immigration restrictions, alien regis-          WAIVER OF IMMUNITIES, EXEMPTIONS AND PRIVILEGE
tration requirements and national service obligations
and the same facilities as regards exchange restric-           Î. The immunities, exemptions and privileges
tions as are accorded by such Member to the repre-          provided in this chapter are granted m '.he lite. w5ts
sentatives, officials and employees of comparable           of the Fund. The Fund may waive, to such exient
rank of other international financial institutions of       and upon such conditions as it nay ds.er.*: ie. -
which it is a member;                                       Immunities, exemptions and privileges provide- '•<<
                                                        17
 ---pagebreak---  this chapter in cases where its action would not pre-              Chapter XII. Interpretation and arbitration
judice the interests of the Fund.
    2. The Managing Director shall have the power,                                    Article 52
 as may be delegated to him by the Governing Coun-
cil, and the duty to waive the immunity of any of the                              INTERPRETATION
staff, and experts performing missions for the Fund,             1. Any question of interpretation or application
in cases where the immunity would impede the                  of the provisions of this Agreement arising between
course of justice and can be waived without pre-              any Member and the Fund or between Members
judice to the interests of the Fund.                          shall be submitted to the Executive Board for deci-
                                                              sion. Such Member or Members shall be entitled to
                        Article 50                            participate in the deliberations of the Executive
                                                              Board during the consideration of such question in
               APPLICATION OF THIS CHAPTER                    accordance with rules and regulations to be adopted
    Each Member shall take such action as is necessary        by the Governing Council.
for the purpose of making effective in its territory the         2. In any case where the Executive Board has
principles and obligations set forth in this chapter.         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
                Chapter XI. Amendments                        Qualified Majority. The decision of the Governing
                                                              Council shall be final.
                        Article 51
                                                                 3. Where the Governing Council has been un-
                       AMENDMENTS                             able to reach a decision under paragraph 2 of this
                                                              article, the question shall be submitted to arbitration
    1. (a) Any proposal to amend this Agreement               in accordance with the procedures laid down in ar-
emanating from a Member shall be notified to all              ticle 53. paragraph 2, if any Member so requests
 Members by the Managing Director and referred to             within three months after the final day of consider-
 the Executive Board, which shall submit its recom-           ation of the question by the Governing Council.
mendations thereon to the Governing Council.
    (b) Any proposal to amend this Agreement
emanating from the Executive Board shall be                                           Article 53
notified to all Members by the Managing Director
and referred to the Governing Council.                                               ARBITRATION
    2. Amendments shall be adopted by the Govern-                1. Any dispute between the Fund and any
 ing Council by a Highly Qualified Majority. Amend-           Member which has withdrawn, or between the Fund
ments shall enter into force six months after their           and any Member during the termination of the
adoption unless otherwise specified by the Govern-            Fund's operations, shall be submitted to arbitration.
ing Council.                                                     2. The arbitral tribunal shall consist of three ar-
    3. Notwithstanding paragraph 2 of this article,           bitrators. Each party to the dispute shall appoint one
any amendment modifying:                                      arbitrator. The two arbitrators so appointed shall ap-
                                                              point the third arbitrator, who shall be the Chair-
    (a) The right of any Member to withdraw from the          man. If within 45 days of receipt of the request for
 Fund;                                                        arbitration either party has not appointed an arbi-
    (b) Any voting majority requirement provided for          trator, or if within 30 days of the appointment of the
 in this Agreement;                                           two arbitrators the third arbitrator has not been ap-
    (c) The limitation on liability provided in article 6;    pointed, either party may request the President of the
                                                              International Court of Justice, or such other author-
    (d) The right to subscribe or not to subscribe            ity as may have been prescribed by rules and regula-
 Scares of Directly Contributed Capital pursuant to           tions adopted by the Governing Council, to appoint
article 9, paragraph 5;                                       an arbitrator. If the President of the International
    {e) The procedure for amending this Agreement;            Court of Justice has been requested under this para-
                                                              graph to appoint an arbitrator and if the President is
shall not come into force until accepted by all               a national of a State party to the dispute or is unable
 Members. Acceptance shall be deemed to have been             to discharge his duties, the authority to appoint the
given unless any Member notifies its objection to the         arbitrator shall devolve on the Vice-President of the
 Managing Director in writing within six months after         Court, or, if he is similarly precluded, on the oldest
 the adoption of the amendment. Such period of time           among the members of the Court not so precluded
 msy be extended by the Governing Council at the              who have been longest on the bench. The procedure
 time of the adoption of the amendment, at the re-            of arbitration shall be fixed by the arbitrators but the
 quest of any Member.                                         Chairman shall have full power to settle all questions
    4. The Managing Director shall immediately no-            of procedure in any case of disagreement with re-
 tify all Members and the Depositary of any amend-            spect thereto. A majority vote of the arbitrators shall
 ments that are adopted and of the date of the entry          be sufficient to reach a decision, which shall be final
 into force of any such amendments.                           and binding upon the parties.
                                                           18
                                                                                                                 ZC
 ---pagebreak---    3. Unless a different procedure for arbitration is      acceptance or approval from at least 90 States.
provided for in an Association Agreement, any dis-         provided that their total subscriptions of Shares of
pute between the Fund and the Associated ICO shall         Directly Contributed Capital comprise not less than
be subject to arbitration in accordance with the pro-      two thirds of the total subscriptions of Shares of
cedures provided for in paragraph 2 of this article.       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
             Chapter XIII. Final provisions                contributions to the Second Account specified in art-
                                                           icle 13. paragraph Z has been met. and further
                                                           provided that the foregoing requirements have been
                       Article 54                          fulfilled by 31 March 1982 or by such later date as
       SIGNATURE AND RATIFICATION, ACCEPTANCE              the States that have deposited such instruments by
                      OR APPROVAL                          the end of that period may decide by a two-third's
   1. This Agreement shall be open for signature by        majority vote of those States. If the foregoing
all States listed in schedule A. and by intergovern-       requirements have not been fulfilled by that later
mental organizations specified in article 4 (b). at        date, the States that have deposited such instruments
United Nations Headquarters in New York from               by that later date may decide by a two-thirds major-
1 October 1980 until one year after the date of its        ity vote of those States on a subsequent date. The
entry into force.                                          States concerned shall notify the Depositary of any
                                                           decisions taken under this paragraph.
   2. Any signatory State or signatory intergovern-
mental organization may become a party to this                2. For any State or intergovernmental organiz-
Agreement by depositing an instrument of ratifica-         ation that deposits an instrument of ratification, ac-
tion, acceptance or approval until 18 months after         ceptance or approval after the entry into force of this
the date of its entry into force.                          Agreement, and for any State or intergovernmental
                                                           organization that deposits an instrument of acces-
                                                           sion, this Agreement shall enter into force on the
                       Article 55                          date of such deposit.
                      DEPOSITARY
                                                                                  Article 58
   The Secretary-General of the United Nations shall
be the Depositary of this Agreement.                                            RESERVATIONS
                                                              Reservations may not be made with respect to any
                       Article 56                          of the provisions of this Agreement except with re-
                       ACCESSION                           spect to article 53.
   After the entry into force of this Agreement any
Slate or intergovernmental organization specified in          IN WITNESS WHEREOF the undersigned, being duly
article 4 may accede to this Agreement upon such           authorized thereto, have affixed their signatures
terms and conditions as are agreed between the             under this Agreement on the dates indicated.
Governing Council and that State or intergovern-              DONE at Geneva on the twenty-seventh day of
mental organization. Accession shall be effected by        June, one thousand nine hundred and eighty, in one
the deposit of an instrument of accession with the         original in the Arabic. Chinese. English. French.
Depositary.                                                Russian and Spanish languages, all texts being equ-
                                                           ally authentic.
                       Article 57
                   ENTRY INTO FORCE                                          (Certified as an authentic text. )
   1. This Agreement shall enter into force upon re-
ceipt by the Depositary of instruments of ratification.
                                                        19
                                                                                                                9
 ---pagebreak---                                                   SCHEDULES
                                                     SCHEDULE A
                              Subscriptions of Starts of Directly Contributed Capital
                                       PauUn Sharrs                       Payable Shorts                Total
                                                  Value                                 Value                     Value
                                                (Vmu of                               [Units of                 (Units of
           Stmt                  Number         Account)            Number            Account)   Number         Account)
Afghanistan                       105            794 480                2               15 133     107           809 612
Albania                           103            779 347                 1               7566      104           786 913
Algeria                            118           892 844                9              68 098      127           960 942
Angola                             117           885 277                8              60532       125           945 809
Argentina                          153         1 157 670              26              196 728      179        1 354 398
Australia                         425          3 215 750             157            1 187 936     582         4 403 686
Austria                           246          1861352                70              529 653     316         2 391005
Bahamas                            101        * 764 214                  1               7 566     102           771 780
Bahrain                            101           764 214                 1               7 566     102           771780
Bangladesh                         129           976 075               14             105 931      143        1082 005
Barbados                           102           771780                  1               7566      103           779 347
Belgium                           349          2640 699              121              915 543     470         3 556 242
Benin                              101           764 214                 1               7566     102            771 780
Bhutan                             100           756 647                0                     0    100           756 647
Bolivia                            113           855 011                6              45 399      119           900410
Botswana                           101           764 214                 1               7 566     102           771 780
Brazil                            338          2 557 467             115              870 144     453         3 427 612
Bulgaria                           152         1 150 104              25              189 162      177        1 339 265
Burma                              104           786 913                2               15 133     106          •802 046
Burundi                            100           756 647                0                     0    100           756 647
Byelorussian Soviet
  Socialist Republic . . . .       100           756 647                0                     0    100           756 647
Canada                            732          5 538 657             306            2 315 340    1038         7 853 997
Cape Verde                         100           756 647                0                     0    100           756 647
Central African Republic . .       102           771780                  1                7 566    103           779 347
Chad                               103           779 347                 1                7566     104           786 913
Chile                              173         1309 000                35             264 827     208         1 573 826
China                            1 111         8 406 350             489            3 700005     1600       12 106 354
Colombia                           151         1 142 537               25             189 162      176        1331699
Comoros                            100           756 647                0                     0    100           756 647
Congo                              103           779 347                 1                7566     104           786 913
Costa Rica                         118           892 844                 8              60 532     126           953 375
Cuba                               184          1392 231               41             310225       225        1 702 456
Cyprus                             100           756 647                0                     0    100           756 647
Czechoslovakia                     292         2209410                 93             703 682      385        2913 092
Democratic Kampuchea. . .          101           764 214                 1                7566     102           771780
Democratic People's Republic
  of Korea                         104           786 913                 2              15 133     106           802 046
Democratic Yemen      . . . .      101           764 214                 1                7566     102           771780
Denmark                            242          1 831 086              68             514 520      310        2 345 606
Djibouti                           100           756 647                 0                    0    100           756M7
Dominica                           100           756647                  0                    0    100           756 647
Dominican Republic . . . .         121           915 543               10               75 665     131           991208
Ecuador                            117           885 277                 8              60 532     125           945 809
                                   147          1112 271               22              166462      169         1 278 734
Egyp«
                                   118           892 844                 9              68 098     127           960 942
El Salvador                                                                               7 566                  734 780
Equatorial Guinea. .      . .      101           764 214                 1                         102
                                   108           817 179                 4              30 266     112           847 445
Ethiopia                                                                                                         809612
Fiji                               105           794 480                 2              15 133     107
                                   196          1 483 028              46             348 058      242         1831086
Finland                                                                             4 698 779    2006       15 178 342
France                           1385         10479 563              621
                                    109           824 745                4              30266      113           855 011
Gabon                                                                                                            779 347
Gambia                             102            77! 780                1                7 566    103
German Democratic                                                                                  472        3 571375
   Republic                        351         2 655 831              121             915 543
Germany.                                                                                         2 650      20051 149
   Federal Republic of . . .     1819         13 763 412             831            6 287 738
                                    129           976 075               14             105 931     143         1082 005
Ghana
                                    100           756 647                0                     0   100           756 647
Greece                                                                                                           756 647
Grenada                             100           756 647                0                     0   100
                                    120           907 977               10              75 665     130           983 641
Guatemala                                                                                15 133                  809612
Guinea                              105           794 480                2                         107
                                                          20
                                                                                                                     ZÏ
 ---pagebreak---                                           SCHEDULE A (continued)
                         Souscriptions of Starts of Directly CootriootW Capital
                                 raisin Snares                     raymjble Shares             Total
                                             fame                                Vame                   Value
                                           {Ummof                              {Ummof                 (Units of
          Suit             Number          Aetmmi)            Number           Accmmt)  Number        Account)
Guinea-Bissau . . . .        100             756 647              0                   0   100          756 647
Guyana                       108             817 179              4              30266    112          847 445
Haiti                        103             779 347              2              15 133   105          794 480
Holy See                     100             756647               0                   0   100          756 647
Honduras                     110             832 312              5              37 832   115          870 144
Hungary                      205           1551 127              51            385 890    256        1937 017
Iceland                      100             756 647              0                   0   100          756 647
India                        197           1 490 595             47            355 624    244        1846219
Indonesia                    181           1369 531              39            295 092    220        1664 624
Iran                         126             953 375             12              90798    138        1044 173
Iraq                         111             839 878              6              45 399   117          885 277
Ireland                      100             756 647              0                   0   100          756 647
Israel                       118             892 844              8              60532    126          953 375
Italy .                      845           6 393 668           360           2 723 930  1205         9 117 598
Ivory Coast                  147           1 112 271             22             166 462   169        1 278 734
Jamaica                      113             855 011              6              45 399   119          900410
Japan                      2 303          17 425 584          1064           8 050 726  3 367      25 476 309
Jordan                       104             786 913              2              15 133   106          802 046
Kenya                        116             877 711              7              52 965   123          930676
Kuwait                       103             779 347              1               7 566   104          786 913
Lao People's
   Democratic Republic .     101             764 214              0                   0   101          764 214
Lebanon                      105             794 480              2              15 133   107          809 612
Lesotho                      too             756 647              0                   0   100          756 647
Liberia                      118             892 844              8              60532    126          953 375
Libyan Arab Jamahiriya       105             794 480              3              22 699   108          817 179
Liechtenstein . . . .        100             756 647              0                   0   100          756647
Luxembourg                   100             756 647              0                   0   100          756 647
Madagascar                   106             802 046              3              22 699   109          824 745
Malawi                       103             779 347              1               7 566   104          786 913
Malaysia                     248           1876 485              72            544 786    320        2421271
Maldives                     100             756 647              0                   0   100          756 647
Mali                         103             779 347              1               7566    104          786 913
Malta                        101             764 214              1               7566    102          771780
Mauritania                   108             817 179              4              30266    112          847 445
Mauritius                    109             824 745              5              37 832   114          862 578
Mexico                       144           1 089 572             21             158 896   165        1248468
Monaco                       100             756 647              0                   0   100          756 647
Mongolia                     103             779 347              1               7 566   104          786 9)3
Morocco                      137           1 036 607             18             136 196   155        1 172 803
Mozambique . . . .           106             802 046              3              22 699   109          824 745
Nauru                        100             756 647              0                   0   100          756 647
Nepal                        101             764 214              0                   0   101          764 214
Netherlands                  430           3 253 583           159           1 203 069    589        4 456652
New Zealand . . . .          100             756 647              0                   0   100          756 647
Nicaragua                    114             862 578              6              45 399   120          907 977
Niger                        101             764 2)4              1               7 566   102          77) 780
Nigeria                      134           1013907               16             121064    150        1 134 971
Norway                       202           1 528 427             49            370 757    251        1899 184
Oman                         100             756 647              0                   0    100          756 647
Pakistan                     122             923 110             II              83 231   133        1006 34)
Panama                       105             794 480              3              22 699   108          817 179
Papua New Guinea . .         116             877 711              8              60532    124          938 242
Paraguay                     105             794 480              2              15 133    107         809612
Peru                         136           1029040               17             128 630   153        1 157 670
Philippines                  183           1384 664              40             302 659   223        1 687 323
Poland                       362           2 739063             126            953 375    488        3 692 438
Portugal                     100             756 647              0                   0    100          756 647
Qatar                        100             756 647              0                   0    100          756 647
Republic of Korea . .        151           1 142 537             25             189 162   176        1331699
Romania                      142           1 074 439             20             151 329    162       1 225 768
Rwanda                       103             779 347              1               7566     104          786 913
Saint Lucia                  100             756647               0                   0    100          756 647
                                                     21
                                                                                                         r
 ---pagebreak---                                          SCHEDULE A (concluded)
                          Subscription of Share» of Directly attributed Capital
                                  PauUa Shares                      Payable Shares              Total
                                             Value                               Value                   Value
                                           (Units of                           (Umuof                  (Units of
           State            Number         Account)             Number         Account)  Number        Account)
Saint Vincent
  and the Grenadines          100            756 647               0                   0   100          756 647
Samoa                         100            756 647               0                   0   100          756 647
San Marino . . . .            100           756 647                0                   0   100          756 647
SaoJEooic and Principe.       101           764 214                0                   0   101          764 214
Saudi Arabia . . .            105           794 480                2              15 133   107          809 612
Senegal                       113           855 011                7             52 965    120          907 977
Seychelles                    100           756 647                0                   0   100          756 647
Sierra L e o n e . . . .      103           779 347                1               7 566   104          786 913
Singapore                     134         1013 907                17            128 630    151        1 142 537
Solomon Islands . .           101           764 214                0                   0   101          764 214
Somalia                       101           764 214                1               7 566   102          771 780
South A f r i c a . . . .     309         2 338 040              101           764 214     410        3 102 253
Spain                         447         3 382 213              167          1263 601     614        4645813
Sri Lanka                     124           938 242               12             90 798    136        1029 040
Sudan                         124           938 242               12             90 798    136        1029 040
Suriname                      104           786 913                2             15 133    106          802 046
Swaziland                     104           786913                 2             15 133    106          802 046
Sweden                        363         2 746 629              127           960 942     490        3 707 571
Switzerland . . . .           326         2 466 670              109           824 745    435         3 291415
Syrian Arab Republic          113           855 011                7             52 965    120          907 977
Thailand                      137         1 036 607               18            136 196    155        1 172 803
Togo                          105           794 480                3             22 699    108          817 17§_
tonga                         100           756 647                0                   0   100          756 647
Trinidad and Tobago.          103           779 347                2             15 133    105          794 480
Tunisia                       113           855 011                6             45 399    119          900410
Turkey                        100           756 647                0                   0   100          756 647
Uganda                        118           892 844                9             68 098    127          960 942
Ukrainian Soviet
  Socialist Republic .        100           756 647                0                   0   100          756 647
Union of Soviet
  Socialist Republics .     1865         14 111469               853         6 454 200   2718       20 565 669
United Arab Emirates          101           764 214                1               7 566   102          771780
United Kingdom
  of Great Britain
  and Northern Ireland      1051          7 952 361              459         3 473 010   1510       11425 372
United Republic
  of Cameroon . . .           116           877 711                8             60 532    124          938 242
United Republic
  of Tanzania . . .           113           855 Oil                6             45 399    119          900410
United Sûtes
  of America . . .          5 012        37 923 155            2 373        17 955 237   7 385      55 878 392
Upper Vol t a . . . .         101           764 214                1               7 566   102          771780
Uruguay                       107           809612                 4             30 266    111          839 878
Venezuela      . . . .        120           907 977               10             75 665    130          983 641
Viet Nam                      108           817 179                4             30 266    112          847 445
Yemen                         101           764 214                1               7 566   102          771780
Yugoslavia . . . .            151         1 142 537               24            181595     175        1324 133
Zaire '. .                    147         1 112 271               22            166 462    169        1 278 734
Zambia                        157         1 187 936               27           204 295     184        1392 231
                              100           756 647                0                   0   100          756 647
Zimbabwe . . . .
                                                     22
                                                                                                               _> O
 ---pagebreak---                                                                   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:             3. In the event of unsubscribed or additional Shares of Directly
   (a) 150 basic votes;                                                    Contributed Capital being made available for subscription in ac-
                                                                           cordance with article 9. paragraph 4 (b) and (r). and article 12,
   (b) The number of votes allocated to it in respect of Shares of         paragraph 3. two additional votes shall be allocated to each
Directly Contributed Capita) which it has subscribed, as set out in        Member State for each additional Share of Directly Contributed
the annex to this schedule;                                                Capital which it subscribes.
  (c) One vote for each 37.832 Units of Account of Guarantee
Capital provided by it;                                                      4. The Governing Council shall keep the voting structure
  (d) Any votes allocated to it in accordance with paragraph 3 of          under constant review and. if the actual voting structure is signifi-
this schedule.                                                             cantly different from that provided for in the annex to this sched-
                                                                           ule, shall make any necessary adjustments in accordance with the
   1 Each Member State referred to in article 5 (b) shall bold:            fundamental principles governing the distribution of votes re-
  (a) 150 basic votes;                                                     flected in this schedule. In making such adjustments, the Govern-
  (b) A number of votes in respect of Shares of Directly Con-              ing Council shall take into consideration:
tributed Capital which it bas subscribed, to be determined by the            (a) The membership;
Governing Council by a Qualified Majority on a basis consistent              (b) The number of Shares of Directly Contributed Capital;
with the allocation of votes provided for ir the annex to this sched-
ule;                                                                         (c) The amount of Guarantee Capital.
   (r) One vote for each 37,832 Units of Account of Guarantee                 5. Adjustments in the distribution of votes pursuant to para-
Capital provided by it;                                                    graph 4 of this schedule shall be made in accordance with rules
  (d) Any votes allocated to it in accordance with paragraph 3 of          and regulations to be adopted for this purpose by the Governing
this schedule.                                                             Council at itsfirstannual meeting by a Highly Qualified Majorir>
                                                                       23                                                                  •i 7
 ---pagebreak---                                           Annex to schedule D
                                          ALLOCATION OF VOTES
                        Basic  Additional                                        Banc Additional
 Stair                   »otet   votes        Total     State                                       Total
Afghanistan       . . .  150     207           357     Israel                    ISO     243        393
Albania                  150      157          307     Italy                     150   1915        2 065
Algeria                  150     245           395     Ivory Coast               150     326        476
Angola : . . . .         150     241           391     Jamaica                   150     230        380
Argentina . . . .        150     346           496     Japan                     150   5 352       5 502
Australia. . . . .       150     925         1075      Jordan                    150     205        355
Austria                  150     502           652     Kenva                     150     237        387
Bahamas. . . . .         150      197          347     Kuwait                    150     201        351
Bahrain                  150      197          347     Lao People's
Bangladesh . . . .      150      276           426        Democratic Republic    150     195        345
Barbados . . . .         150 .    199          349     Lebanon                   150     207        357
Belgium                  150     747           897     Lesotho                   150     193        343
Benin                    150      197          347     Liberia                   150     243        393
Bhutan                   150      193          343     Libyan Arab
Bolivia                 150      230           380        Jamahiriya . . . .     150    208         358
Botswana . . . .        150       197          347     Liechtenstein . . . .     150     159        309
Brazil                  150      874         1024      Luxembourg . . . .        150     159        309
Bulgana                  150     267           417     Madagascar      . . . .   150     210        360
Burma                   150      205           355     Malawi                    150    201         351
Burundi                 150       193          343     Malaysia                  150    618         768
Byelorussian Soviet                                    Maldives                  150     193        343
    Socialist Republic. 150       151          301     Mali                      150    201         351
Canada                  150     1650         1 800     Malta                     150     197        347
Cape Verde . . .        150       193          343     Mauritania                150    216         366
Central African                                        Mauritius                 150    220         370
    Republic . . . .    150       199          349     Mexico                    150    319         469
Chad                    150      201           351     Monaco                    150     159        309
Chile                   150      402           552     Mongolia                  150     157        307
China                   150    2 850        3 000      Morocco                   150    299         449
Colombia        . . . . 150      340           490     Mozambique . . . .        150    210         360
Comoros                 150       193          343     Nauru                     150     193        343
Congo                   150      201           351     Nepal                     150     195        345
Costa Rica . . . .      150      243           393     Netherlands . . . .       150    936        1086
Cuba                    150      434           584     New Zealand . . . .       150     159        309
Cyprus                  150       193          343     Nicaragua                 150    232         382
Czechoslovakia . .      150      5*2           732     Niger                     150     197        347
Democratic                                             Nigeria                   150    290         440
    Kampuchea . .       150       197          }47     Norway                    150    399         549
Democratic People's                                    Oman                      150     193        343
    Republic of Korea   150      205           355     Pakistan                  150    257      • 407
Democratic Yemen .      150      197           347     Panama                    ISO    208         358
Denmark         . . . . 150      493           643     Papua New Guinea . .      150    239         389
Djibouti                150       193          343     Paraguay                  150    207         357
Dominica        . . . . 150      193           343     Peru                      150    295         445
Dominican Republic      150      253           403     Philippines               150    430         580
Ecuador                 150      241           391     Poland                    150    737         887
Egypt                   150      326           476     Portugal                  150     159        309
El Salvador. . . .      150      245           395     Qatar                     150     193        343
Equatorial Guinea .     150      197           347     Republic of Korea . .     150    340         490
Ethiopia                150      216           366     Romania                   ISO    313         463
F'j»                    150      207           357     Rwanda                    150    201         351
Finland                 150      385           535     Saint Lucia               150     193        343
France                  150    3 188        3 338      Saint Vincent and
Gabon                   150      218           368        the Grenadines     . . 150     193        343
Gambia                  150      199           349     Samoa                     150     193        343
German Democratic                                      San Marino . .            150     159        309
    Republic . . . .    150      713           863     Sao Tome
Germany. Federal                                          and Principe . . .     150     195        345
   Republic o f .       150    4 212        4 362      Saudi Arabia       . . .  150    207         357
Ghana                   150      276          426      Senegal                   150    232         382
Greece                  150      159           309     Seychelles    . . . . . . 150     193        343
Grenada                 150      193           343     Sierra Leone      . . . . 150    201         351
Guatemala . . . .       150      251           401     Singapore                 150    291         441
Guinea                  150      207           357     Solomon Islands . . .     150     195        345
Guinea-Bissau. . .      150      193           343     Somalia                   150     197        347
Guyana                  150      2)6           366     South Africa      . . . . 150    652         802
Haiti                   150      203           353     Spain                     150    976        1 126
Holy See        . . . . 150      159           309     Sri Lanka                 150    263         413
Honduras        . . . . 150      222           372     Sudan                     150    263         413
Hungary                 150      387           537     Surinam e                 150    205         355
K eland                 ISO      159           309     Swaziland                 150    205         355
lujia                   150      471          621      Sweden                    150    779         929
Indonesia       . . . . 150      425           575     Switzerland               150    691         841
Iran                    150      266          416      Syrian Arab
Iraq                    150      226           376        Republic               ISO    232         382
Ireland                 150      159           309     Thailand                  150    299         449
                                                    24
                                                                                                       3<f.
 ---pagebreak---                                      BOSK        Additional                                                      Basic       Additional
 Stair                                mn            rule*          Total     Stair                               rotes          rtiiei         Total
 Togo                                 150           206             358      United Republic
 Tonga                                150            193            343          of Cameroon .      . .           150            239             389
 Trinidad                                                                    United Republic
    and Tobago        . . .          150            203             353          of Tanzania . .     . .          150            230             380
Tunisia                              150            230             380      United States
Turkey                               150             159            309          of America . .      . .          ISO         11738          11888
 Uganda                              150            245             395      Upper Volta        . .  . .          150             197            347
 Ukrainian Soviet                                                                                                 150            214             364
    Socialist Republic. .            150             151            301                                           150            251            401
 Union of Soviet                                                             Viet Nam                             150            216             366
    Socialist Republics              150          4 107           4 257                                           150             197            347
United Arab                                                                                                       150            338            488
    Emirates                         150             197            347                                           150            326            476
United Kingdom                                                                                                    150            355             505
    of Great Britain                                                         Zimbabwe                             150             193            343
    and Northern Ireland             150          2400            2 550               OVERALL TOTAL            24 450         79 924        104 374
                                                                   SCHEDULE E
                                                         Election of Executive Directors
   1. The Executive Directors and their alternates shall be elected          even if the total votes for that candidature thereby exceed 3.5 per
by ballot of the Governors.                                                  cent
   2. Balloting shall be for candidatures. Each candidature shall              7. If. on any ballot, two or more Governors holding an equal
comprise a person nominated by a Member for Executive Director              number of votes have voted for the same candidature and the
and a person nominated by the same Member or another Member                 votes of one or more, but not all. of such Governors could be
for alternate. The two persons forming each candidature need not            deemed to have raised the total votes above 3.5 per cent of the
be of the same nationality.                                                 tout voting power, whoever among them shall be entitled to vote
   3. Each Governor shall cast for one candidature all of the votes         on the next ballot if a next ballot is required, shall be determined
to which the Member which appointed that Governor is entitled               by lot.
under schedule D.                                                              8. For determining whether a candidature is elected at the se-
   4. The 28 candidatures receiving the greatest number of votes            cond ballot, and who are the Governors whose votes shall be
shall be elected, provided that no candidature has received less            deemed to have elected that candidature, the minimum and
than 25 per cent of the total voting power.                                 maximum percentages specified in paragraphs 4 and 5 (b) of this
                                                                            schedule and the procedures described in paragraphs 6 and 7 of
   5. If 28 candidatures are not elected on the first ballot a se-          this schedule shall apply.
cond ballot shall be held in which shall vote only:
   (a) Those Governors who voted in thefirstballot for a candida-              9. If, after the second ballot, 28 candidatures have not been
ture not elected;                                                           elected, further ballots shall be held on the same principles until
                                                                            27 candidatures have been elected. After this, the twenty-eighth
   (b) Those Governors whose votes for an elected candidature are           candidature shall be elected by a simple majority of the remaining
deemed under paragraph 6 of this schedule to have raised the                votes.
votes cast for that candidature above 3.5 per cent of the total
voting power.                                                                  10. In the event that a Governor votes for an unsuccessful can-
                                                                            didature in the last ballot held, that Governor may designate a
   6. In determining whether the votes cast by a Governor are to            successful candidature, if the latter agrees, to represent in the Exe-
be deemed to have raised the total of any candidature above 3.5             cutive Board the Member which appointed that Governor. In this
per cent of the total voting power, the percentage shall be deemed          case, the ceiling of 3.5 per cent specified in paragraph 5 ib) of this
to exclude, first, the votes of the Governor casting the smallest           schedule shall not apply to the candidature so designated
number of votes for that candidature, then the votes of the Gover-
nor casting the second smallest number of votes, and so on until                11. When a State accedes to this Agreement in the interval
3.5 per cent, or afigurebelow 3.5 per cent but above 25 per cent,           between elections of the Executive Directors, it may designate any
is reached; except that any Governor whose votes must be counted            of the Executive Directors, if the latter agrees, to represent it in the
in order to raise the total of any candidature above 2.5 per cent           Executive Board. In this case, the ceiling of 3.5 per cent specified
shall be considered as casting all of his votes for that candidature.       in paragraph 5 (b) of this schedule shall not apply.
                                                                                                                                        33
                                                                         2$
 ---pagebreak---                                             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</
 ---pagebreak---                                                               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                   Kenya; Kuwait; Lebanon; Liberia, Libyan Arab
 Development, in its resolution 93 (IV) on the Inte-                 Jamahiriya: Luxembourg; Madagascar. Malawi;
 grated Programme for Commodities, agreed that                       Malaysia; Mali; Malta; Mauritius; Mexico: Mon-
 steps would be taken towards establishing a common                  golia;" Morocco; Mozambique; Netherlands; New
 fund and requested the Secretary-General of UNC-                    Zealand; Nicaragua: Niger, Nigeria; Norway: Oman;
 TAD to convene a negotiating conference open to all                 Pakistan; Panama; Papua New Guinea; Peru; Philip-
 members of UNCTAD no later than March 1977. It                      pines; Poland; Portugal: Qatar; Republic of Korea;
 further requested the Secretary-General of UNC-                     Romania; Rwanda: Saudi Arabia: Senegal: Sierra
 TAD to convene preparatory meetings prior to such                   Leone: Singapore: Somalia; Spain; Sri Lanka: Sudan.
 a conference.                                                       Swaziland; Sweden; Switzerland; Syrian Arab Re-
    2. After three preparatory meetings had been                     public; Thailand; Togo; Trinidad and Tobago:
 held pursuant to that request, the United Nations                   Tunisia; Turkey; Uganda; Union of Soviet Socialist
 Negotiating Conference on a Common Fund under                       Republics: United Arab Emirates; United Kingdom
 the Integrated Programme for Commodities was ac-                    of Great Britain and Northern Ireland; United Re-
cordingly convened at the Palais des Nations. Ge-                    public of Cameroon; United Republic of Tanzania:
neva, on 7 March 1977. The Conference held four                      United States of America; Uruguay; Venezuela; Viet
sessions, the first from 7 March to 2 April 1977, the                Nam: Yemen: Yugoslavia: Zaire; Zambia.
second from 7 November to I December 1977 and                           5. The following State member of UNCTAD was
from 14 to 30 November 1978. the third from 12 to                    represented at the Conference by an observer: Holy
 19 March       1979 and the fourth from 5 to 27 June                See.
 19801.
                                                                        6. The following United Nations organs were re-
    3. At its third session the Conference adopted re-               presented at the Conference by observers: Depart-
solution 1 (III) on       the fundamental elements of the            ment of International Economic and Social Affairs of
Common Fund: and requested the Secretary-Gen-                        the United Nations Secretariat. Economic Commis-
eral of UNCTAD to convene an Interim Committee                       sion for Europe. Economic Commission for Africa.
of the Negotiating Conference, open to the participa-                United Nations Industrial Development Organiza-
tion of all Stales members of UNCTAD. to consider                    tion. United Nations Environment Programme.
the elements requiring further elaboration, to draft                 United Nations Development Programme, World
the Articles of Agreement of the Common Fund, and                    Food Council. International Trade Centre.
to make recommendations regarding the preparatory                       7. The following specialized and related agencies
work required to bring the Fund into operation. The                  were represented at the Conference by observers: In-
Interim Committee held five sessions, thefirstfrom 3                 ternational Labour Organisation. Food and Agricul-
to 14 September 1979. the second from 22 October to                  ture Organization of the United Nations. World
2 November 1979. the third from 3 to 14 December                     Bank. International Monetary Fund. General Agree-
 1979. and the fourth from 18 February to 5 March                    ment on TarifTs and Trade.
 1980 and the fifth from 8 to 19 April 1980.
                                                                        8. The following intergovernmental organizations
   4. Representatives of the following 124 States                    were represented at the Conference by observers. Af-
members of UNCTAD participated in one or more                        rican and Mauritian Common Organization. African
sessions of the Conference, namely representatives                   Development Bank. African Groundnut Council. As-
of: Afghanistan: Algeria: Argentina; Australia; Aus-                 sociation of Iron Ore Exporting Countries. Common-
tria: Bangladesh; Barbados; Belgium; Benin; Bolivia;                 wealth Secretariat Council of Arab Economic Unit>.
Botswana: Brazil; Bulgaria: Burma: Burundi; Can-                     Economic Community of the Great Lakes Countries.
ada: Central African Republic; Chad; Chile; China;                   European Economic Community. European Free
Colombia; Congo; Costa Rica; Cuba: Cyprus;                           Trade Association. Inter-American Developement
Czechoslovakia; Democratic People's Republic of                      Bank Intergovernmental Council of Copper Export-
Korea: Democratic Yemen, Denmark; Djibouti;                          ing Countries. International Bauxite Association. In-
Dominican Republic; Ecuador; Egypt; El Salvador;                     ternational Cocoa Organization. Latin American
Ethiopia; Finland: France: Gabon; Gambia; German                     Economic System. League of Arab States. Organ-
Democratic Republic; Germany. Federal Republic                       isation for Economic Co-operation and Develop-
of: Ghana: Greece: Guatemala: Guinea; Haiti; Hon-                    ment. Organization of African Unity. Organization
duras: Hungary: India; Indonesia; Iran: Iraq; Ireland:               of American States. Organization of the Islamic Con-
Israel: Italy; Ivory Coast; Jamaica; Japan; Jordan:                  ference. Organization of the Petroleum Exporting
                                                                     Countries. Permanent Secretariat of the General
                                                                     Treatv on Central American Economic Integration.
   1
      T> * reports of the Conference were circulated under the fol-  OPEC Fund.
lowingjymbols: first session. TD/IPC/CF/CONF/8. second ses-
r.on, TD/lPC/CF/CONF/14 (Part I), and resumed second ses-               9. The following non-governmental organizations
sion. TD/IPC/CF/CONF/14 (Part II): third session. TD/IPC/            were admitted as observers to the Conference by de-
CF'CONF/19; fcurth session, TD/IPC/CF/CONF/26.                       cision of the Conference at its second session:
   'TD/IPC/CONF/JÇ. annex I.                                         Friends World Committee for Consultation (Qua-
                                                                  27
 ---pagebreak---  kers). International Chamber of Commerce. Interna-          a common fund pursuant to Conference resolution
 tional Confederation of Free Trade Unions, Interna-        93 (IV) on the Integrated Programme for Com-
 tional Co-operation for Socio-Economic Develop-             modities". The President. Vice-Presidents and Rap-
 ment. International Federation of Cotton and Allied         porteur of the Conference served as Chairman.
 Textile Industries. World Developement Movement,            Vice-Chairmen and Rapporteur respectively of the
 World Federation of United Nations Associations.            Committee of the Whole.
    10. The following organization participated in              18. At its first session the Conference established
 the Conference, having been invited pursuant to            a Credentials Committee consisting of the represen-
 General Assembly resolution 3280 (XXIX): Pan Afri-         tatives of: China, Ecuador, El Salvador. Ivory Coast.
 canist Congress of Azania.                                  Malaysia, Netherlands. Union of Soviet Socialist Re-
    11. The Conference elected Mr. H. S. Walker             publics. United States of America and Zambia. Mr.
(Jamaica) as its President.                                 G van der Tak (Netherlands) was elected Chairman
                                                            of the Credentials Committee. At the fourth session
    12. The Conference, at itsfirstsession, elected the     of the Conference Mr. van der Tak was replaced by
 following Vice-Presidents: Mr. A. Alatas (Indonesia).       Mr. K. Fraterman (Netherlands) as Chairman of the
 Mr. An Chih-yuan (China). Mr. M. Armendâriz                Credentials Committee.
 (Mexico). Mr. N. Boerner (United States of Amer-              19. At the first session, the Committee of the
 ica). Mr. J. Cuttat (Switzerland). Mr. O. El-Shafei        Whole established three negotiating groups to deal
 (Egypt). Mr. T. Fabian (Hungary). Mr. D. Hilton            with the following aspects of the establishment of a
 (Canada). Mr. F. Jaramillo (Colombia). Mr. S. A. M.        common fund:
 S. Kibria (Bangladesh). Mr. D. N. M. Mloka (United
 Republic of Tanzania). Mr. M. Pravda (Czechoslo-              Negotiating Group I: Preamble; objectives and
 vakia). Mr. M. Seo (Japan). Mr. J. R. Steele (United       purposes ; modes of operation
 Kingdom of Great Britain and Northern Ireland).               Negotiating Group II: Financial matters
    13. At its second session, the Conference elected          Negotiating Group III: Decision-making and fund
as Vice-Presidents Mr. A. Gonzâlez-de-Leôn (Me-                management
xico), to replace Mr. M. Armendâriz (Mexico). Mr.              20. At the first session of the Conference.
D. Laloux (Belgium) to replace Mr. J. R. Steele             Negotiating Group I elected Mr. T. G. R. Tscherning
(United Kingdom of Great Britain and Northern               (Sweden) as Chairman. Mr. S. T. Matturi (Sierra
Ireland), and Mr. A. Wendt (United States of Amer-          Leone) as Vice-Chairman, and Mr. L. Sekulic
ica) to replace Mr. M. Boerner (United States of            (Yugoslavia) as Rapporteur. Negotiating Group II
America).                                                   elected Mr. A. Al-Tijani Salih (United Arab Emir-
                                                            ates) as Chairman. Mr. K. Waller (Australia) as
    14. At its resumed second session, the Conference       Vice-Chairman, and Mrs. A. Auguste (Trinidad and
elected as Vice-Presidents representatives of: Mexico       Tobago) as Rapporteur. Negotiating Group III
(Mr. M. Armendâriz to replace Mr. A. Gonzâlez-de-           elected Mr. J. Muliro (Kenya) as Chairman. Mr. L.
Leôn of Mexico); United Republic of Tanzania (Mr.           A. Denisov (Union of Soviet Socialist Republics) as
W. Chagula to replace Mr. D. N. M. Mloka of the             Vice-Chairman. and Mr. S. Nagai (Japan) as Rap-
United Republic of Tanzania); Hungary (Mr. F. Fu-           porteur.
rulyas to replace Mr. T. Fabian of Hungary);
Czechoslovakia (Mr. R. HIavaty to replace Mr. M.               21. At the second session of the Conference. Mr.
Pravda of Czechoslovakia); Bangladesh (Mr. S.               T. G. R. Tscherning (Sweden) was replaced by Mr.
Karim to replace Mr. S. A. M. S. Kibria of                  K. G. Lagerfelt (Sweden) as Chairman of Negotiat-
Bangladesh): Federal Republic of Germany (Mr. W.            ing Group I.
Mueller-Thuns to replace Mr. D. Laloux of Bel-                 22. At the resumed second session Mr. K. G.
gium).                                                      Lagerfelt (Sweden) was replaced by Mr. D. Laloux
    15. At its fourth session, the Conference elected       (Belgium) as Chairman of Negotiating Group I. Mr.
as Vice-President Mr. H. Diaz-Thomé (Mexico) to             A. Al-Tijani Salih (United Arab Emirates) was re-
replace Mr. M. Armendâriz (Mexico). Mr. T. Fabian           placed by Mr. J. K. A. Marker (Pakistan) as Chair-
(Hungary) to replace Mr. F. Furulyas (Hungary).             man of Negotiating Group II. and Mr. J. Muliro
                                                            (Kenya) was replaced by Mr. M. Oreibi (Libyan
Mr. J. Ferriter (United States of America) to replace       Arab Jamahiriya) as Chairman of Negotiating
Mr. A. Wendt (United States of America), Mr. S.             Group III. Mr. K. Waller (Australia) was replaced by
Kobavashi (Japan) to replace Mr. M. Seo (Japan).            Mr. J. W. Keany (Australia) as Vice-Chairman of
Mr. ù. Surquin (Belgium) to replace Mr. J. Cuttat           Negotiating Group II and Mr. L. A. Denisov (Union
(Switzerland) and Mr. Zheng Tuobin (China) to re-           of Soviet Socialist Republics) as Vice-Chairman of
place Mr. An Chih-yuan (China).                             Negotiating Group III. Mrs. A. Auguste (Trinidad
    16. The Conference elected Mr. S. Wolnik                and Tobago) was replaced by Mr. P. Dass (Trinidad
(Poland) as Rapporteur. At its second session it            and Tobago) as Rapporteur of Negotiating Group II
elected Mr. S. Borowy (Poland) to replace Mr. S.            and Mr. S. Nagai (Japan) was replaced by Mr. S.
Wolnik (Poland). At the resumed second session it           Naito (Japan) as Rapporteur of Negotiating Group
elected Mr. J. Toczek (Poland) to replace Mr. S. Bo-        III.
rowy (Poland).                                                23. At the fourth session of the Conference, the
    17. At its first session, the Conference established    Committee of the Whole established three working
a Committee of the Whole and allocated to it further        groups, to which it allocated consideration of a
consideration of item 9 of its agenda. "Negotiation of      number of outstanding issues relating to the First Ac-
                                                         28
                                                                                                                 %
 ---pagebreak--- count. Second Account and administrative and legal       resumed second, third and fourth sessions. ' the Con-
questions, respectively.                                 ference prepared the AGREEMENT ESTABLISHING THE
   24. Mr. J.-V. Gbeho (Ghana) was elected as            COMMON FUND FOR COMMODITIES.
Chairman of Working Group I and Mr. S. Ko-                  28. The Conference adopted the text of the
 bayashi (Japan) as Vice-Chairman. Mr. J. K. A.          Agreement on 27 June 1980 and provided that the
 Marker (Pakistan) was elected Chairman of Working       Agreement should be open for signature by all States
 Group II and Mr. G. Surquin (Belgium) was elected       listed in schedule A to the Agreement, and by inter-
Chairman of Working Group III.                           governmental organizations specified in article 4 (b)
   25. At the fourth session of the Conference, the      of the Agreement, at United Nations Headquarters
Committee of the Whole established a Legal Draft-        in New York from 1 October 1980 until one year
ing Committee to examine the texts of articles for the   after the date of its entry into force.
purpose of ensuring that they were consistent from          29. The Agreement is deposited with the Secre-
the legal and linguistic standpoints and of correcting   tary-General of the United Nations.
all linguistic, grammatical and typographical errors
in the Arabic. Chinese. English. French. Russian and        30. The Conference also adopted on 27 June
Spanish texts of the Agreement. The Legal Drafting        1980 a resolution establishing a Preparatory Com-
Committee was composed of representatives of the         mission for the Common Fund for Commodities.
following States: Brazil. Canada. China. Colombia.       The text of the resolution adopted by the Conference
Ghana. Hungary. India. Iraq. Jamaica. Japan.             is annexed to this Final Act.
Malaysia. Netherlands. Nigeria. Senegal. Spain. Su-
dan. Thailand. Union of Soviet Socialist Republics.         IN WITNESS WHEREOF the undersigned representa-
United Kingdom of Great Britain and Northern             tives have signed this Final Act on behalf of their
Ireland. United States of America and Venezuela.         respective States.
Mr. T. De Bruyn (Netherlands) was elected Chair-            DONE at Geneva, this twenty-seventh day of June,
man of the Legal Drafting Committee.                     one thousand nine hundred and eighty, in a single
   26. The Conference was opened bv Mr. Gamani           copy in the Arabic. Chinese. English. French. Rus-
Corea. Secretary-General of UNCTAD. Mr. B. T. G.         sian and Spanish languages, each text being equally
Chidzero. Director of the Commodities Division of        authentic.
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-                                  President of the Conference
modities Division of UNCTAD. as Director-in-
charee. Mr. K. W. Scott acted as Secretary of the                            Secretary-General of L'SCTAD
Conference. Mr. Scott was replaced by Mr. I. Nicolle                     Director-in-charge of the Conference
as Secretary at the resumed second session and at the                            Secretary of the Conference
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       'TD/IPC/CF/CONF/8, TD/IPC/CF/CONF/M. Part I and
in the reports of the Conference on its first, second.   Part II. TD/IPC/CF/CONF/19 and TD/IPC/CF/CONF/26
                                                                                                     '">
                                                      29                                            o-/
 ---pagebreak---                                                                   Annex
                                          RESOLUTION ADOPTED BY THE CONFERENCE
                        Establishment of a Preparatory Coauaiaakia for bringfatg the                   lata
   The United Salions Negotiating Conference on a Common Fund                 d Rules and regulations for the Consultative Committee,
under the Integrated Programme for Commodities                                e Staff regulations;
   1. Decides that:                                                          / An administrative budget reflecting the staffing and finan-
   (a) A Preparatory Commission shall be established, composed                    cial requirements for the first fiscal period of the Fund;
of 28 Sûtes. * The Preparatory Commission shall be open to repre-          (a) Undertake any other related tasks;
sentatives of all other participants in the Conference eligible to
sign the Agreement establishing the Common Fund for Com-                   1 Requests the Secretary-General of UNCTAD:
modities;                                                                  (a) To establish, after consultation with the Chairman of the
   (b) The Preparatory Commission shall elect a Chairman and two        Preparatory Commission, a Special Unit for the servicing of the
Vice-Chairmen from among the representatives of the participat-         Commission;
ing Slates members of the Commission;                                      (6) To convene thefirstannual meeting of the Governing Coun-
   (c) The Preparatory Commission shall continue in existence un-       cil of the Fund as soon as possible after the entry into force of the
til the first meeting of the Governing Council of the Fund is con-      Agreement;
vened, whereupon the Fund shall succeed to all rights and obliga-          (c) To convene, within a period of three months after 31 March
tions of the Commission. If the Agreement has not entered into          1982, a meeting of the States having deposited their instruments of
force by the time specified in article 57. paragraph 1. thereof, the    ratification, acceptance or approval, if. by such time, the Agree-
Preparatory Commission shall be terminated no later than three          ment has not entered into force, and. if appropriate, to convene
months thereafter;                                                      any subsequent meeting;
   (d) The Preparatory Commission shall:                                   3. Decides that, pursuant to General Assembly decision 34/446
    (i) Prepare for submission to the Governing Council of the          of 19 December 1979, the expenses incurred by the work referred
        Fund proposals concerning the following instruments:            to above, with the exclusion of expenses incurred by members of
                                                                        and participants in the Commission in attending its meetings, may
     a Rules of procedure of the Governing Council and of the           be met from the funds advanced by the General Assembly, which
          Executive Board;                                              shall be repaid by the Fund as soon as possible after the entry into
     b. Rules and regulations for the conduct of the business of the    force of the Agreement Should these funds be insufficient, ad-
          Fund;                                                         vances may be provided by Sûtes, which may be set off against
     c. Working papers on policies, criteria and regulations to         their subscriptions of Shares of Directly Contributed Capital of
          govern financing operations by the Fund, including an         the Fund.
          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-                                                           28th plenary meeting
paratory Commission.                                                                                                            27 June 1980
                                                                     30
                                                                                                                                 3g
 ---pagebreak---  ---pagebreak---  ---pagebreak---                                                                                       ISSN0254-147S
                                                                               COM (89) 445 final
                                                                DOCUMENTS
EN                                                                                              11
                                 Catalogue number : CB-CO-89-404-EN-C
                                                                             ISBN 92-77-52894-X
Office for Official Publications of the European Communities
L-2985 Luxembourg
                                                                                                33
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