CELEX: 51987PC0428
Language: en
Date: 1987-09-25
Title: Proposal for a COUNCIL DECISION concerning the signing and provisional application of the International Natural Rubber Agreement, 1987 (presented by the Commission)

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 ---pagebreak---  COMMISSION OF THE EURGFEÂN COMMUNITIES
                                                    COM(87 ) 428 final.
                                                   Brussels , ^|<C September 1987
                                 Proposai for a
                                COUNCIL DECISION
          concerning the signing and provisional application of the
                International Natural Rubber Agreement , 1987
                        ( presented by the Commission )
                                   M
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                                         2 8 otP. 1987 13   Cv7
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                             Summa ry
1. Negotiations for the 1987 International Natural Rubber Agreement
   were concluded on 20 March 1987 at the end of the fourth session
   of the Negotiating Conference . The Agreement is open for signature
   from 1 May 1987 to 31 December 1987 .
2. The current Agreement dating from 1979 will expire on 22 October 1987
   and , as it has already been extended by two years , it cannot be
   extended further . In principle , therefore , the new Agreement should
   enter into force on 23 October , either provisionally or definitively ,
   but in view of the belated conclusion of the negotiations , the
   parties concerned will probably not have completed their domestic
   arrangements by that date and an interim period is accordingly
   anticipated between expiry of the 1979 Agreement and entry into
   force of the 1987 Agreement .
3. The Agreement will enter into force on a provisional basis if at
   least 75% of the exporting countries and the importing countries
   participate and on a definitive basis if at least 80% of the
   exporting countries and the importing countries participate .
4. The Agreement is a means of regulating international trade , its
   main aim being to balance supply and demand in regard to natural
   rubber with a view to stabilizing the product 's price in the long
   term .
   Accession to the Agreement is in the Community 's economic interest
   and will facilitate attainment of its common commercial policy ; it
   is necessary to maintain good relations with the ASEAN countries ,
   which include the principal natural rubber-producing countries .
   It is accordingly essential for the Community and its Member States
   to sign the Agreement so that it can be put into effect provisonally .
5. It is therefore appropriate for the Council to decide to approve
   the Agreement in the name of the European Economic Community , to
   notify the Secretary-General of the United Nations Organization
   that it will apply the Agreement on a provisional basis and that
   it authorizes the President of the Council to designate the person
   empowered to sign the Agreement .
6. It is essential that the Community and its Member States , on the
   basis of a common position, sign and notify simultaneously provisional
   application of the Agreement , since any individual initiative on
   the part of the Member States would be contrary to the EEC Treaty .
 ---pagebreak---                               EXPLANATORY MEMORANDUM
1.    Negotiations for a Second International Natural Rubber Agreement were
      concluded on 20 March 1987 at the end of the fourth session of the
      Negotiating Conference . This international commodity agreement was
      negotiated in the context of the Integrated Programme for Commodities
      covered by Resolution 93 ( IV ) adopted at the fourth UNCTAD Conference .
2.    The main aims of the Agreement are :
      - to promote and strengthen international cooperation in all branches
        of the world natural rubber sector in particular by providing an
        effective framework for the discussion of matters relating to the
        sectors ;
      - to contribute to the stabilization of the world market in natural
        rubber in the interests of both producers and consumers , notably by
        seeking to avoid excessive price fluctuations and to ensure a long-term
        balance between supply and demand ;
      - to facilitate the expansion of international trade in natural rubber .
3.    Apart from the exchange of basic statistical data , the methods envisaged
      for achieving these aims include the setting up of a price protection
      mechanism comprising :
                                                (1 )
      - a price range expressed in Singitt / kg      and automatically readjustable
        on the basis of the volume of buffer stock transactions and /or price
        levels on the world market ;
      - a buffer stock of a total capacity of 550.000 t of natural rubber , made
        up of a normal buffer stock of 400.000 t and a contingency buffer stock
        of 150.000 t .
4.    The principal amendments made by the 1987 Agreement to the 1979 Agreement
      relate to :
      - the strengthening of procedures for the revision of the price range ,
        which in future will be adjusted automati cal ly by a minimum percentage
        on the basis of market price trends and /or the volume of the buffer
        stock ;
      - the reduction from 18 months to 15 months of the interval at which the
        reference price must be revised ;
      - the ban on borrowing ;
      - the limitation of the powers of the Council and of the financial
        responsibility of the contracting parties to the Agreement ;
      - stricter conditions for the entry into force of the Agreement given
        their financial and legal implications .
( 1 ) Singgit : average value of the Malaysian Ringitt and the Singapore dollar
 ---pagebreak---                                       - 2 -
5.    The sources of finance envisaged remain the same as in the 1979 Agreement
      (contribution by the member countries to the administrative budget and
      the buffer stock ), with one major exception , i.e. that the International
      Natural Rubber Organization will no longer be authorized or able to take
      out loans .
6.    The Agreement has been negotiated by the Community and its Member States
      in accordance with the common position defined by the Council'11 . It is
      open for signature from 1 May to 31 December 1987 . However , the 1979
      Agreement is due to expire on 22 October and, as it has already been
      extended by 2 years , it cannot be extended further . In order to avoid
      any legal hiatus or any gaps in the working of the intervention mechanisms
      of the two Agreements , the Commission proposes that the Community and its
      Member States should ;
      -   sign the 1987 Agreement as soon as possible ;
      -   state their intention to apply the said Agreement on a provisional basis .
7.    It is important that the Community and its Member States should simultaneously
      sign and give notification of the provisional application of this Agreement
      on the basis of a common position , since any individual initiative by the
      Member States would be in breach of the provisions of the EEC Treaty .
8.    The attached draft Decision , which the Council is asked to adopt , has
      been drafted to this end .
(1 ) cf . - doc . 6049/85 Proba 22 and corrigendum 1 (approved by the Council
            on 22 April 1985 )
          - doc . 6504 / 86 Proba 28
          - doc . 94.03 / 86 Proba 68
          - doc . 5158 /87 Proba 20
 ---pagebreak---                                                         ANNEX
                              Proposai for a
                             COUNCIL DECISION
concerning the signing and the provisional application of the International
Natural Rubber Agreement , 1987
THE 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 International Natural Rubber Agreement of 1987 negotiated in the
context of the Integrated Programme for Commodities ( resolution 93 ( IV ) adopted
at the fourth United Nations Conference on Trade and Development ) is open for
signature from 1 May to 31 December 1987 ;
Whereas the International Natural Rubber Agreement of 1979 expires on 22 October
1987 ; whereas it is therefore advisable to apply the new Agreement with
effect from 23 October 1987 in order to avoid any gap in the working of the
intervention mechanisms of the two Agreements ;
Whereas the aims of the Agreement are :
- to promote and strengthen international cooperation in all branches of the
   world natural rubber sector , in particular by providing an effective frame ¬
   work for the discussion of matters concerning this sector ;
-  to contribute to the stabilization of the world market in natural rubber in
   the interests of both producers and consumers , notably by seeking to avoid
   excessive price fluctuations and to ensure a long-term balance between supply
   and demand ;
- to facilitate the expansion of international trade in natural rubber ;
Whereas , apart from the exchange of basic statistical data , the methods envisaged
for achieving these aims include the setting up of a price protection mechanism
comprising :
-  a price range expressed in Singgit / kg ( Singgit : average value of the
   Malaysian ringgit and the Singapore dollar ) and automatically readjustable
   on the basis of the volume of buffer stock transactions and /or price levels
   on the world market ;
 ---pagebreak--- - a buffer stock of a total capacity of 550.000 t of natural rubber , made
    up of a normal buffer stock of 400.000 t and a contingency buffer stock
    of 150.000 t ;
Whereas the aims pursued by the Agreement fall within the bounds of the common
commercial policy ;
Whereas , to this end , the following sources of finance are envisaged :
- contributions by the members of the Agreement to the administrative budget ;
- contributions by the members of the Agreement to the buffer stock ;
Whereas the application of the said Agreement involves both Community action
and joint action by the Member States ;
Whereas , consequently , it is important that the Community and its Member States
should sign the Agreement deposited with the Secretary-General of the United
Nations and give notification before 23 October 1987 of their intention to
apply the new Agreement on a provisional basis ,
HAS DECIDED AS FOLLOWS :
                                     Article 1
The Community and its Member States shall sign the International Natural Rubber
Agreement , 1987, deposited with the Secretary-General of the United Nations ,
the text of which is annexed tor this Decision . The Community and its Member
States shall state their intention to apply the International Natural Rubber
Agreement , 1987, on a provisional basis , in accordance with the Articles of the
Ag reement .
                                     Article 2
The President of the Council is hereby authorized to designate the persons
empowered to sign the Agreement and to deposit the notification of provisional
application on behalf of the Community .
Done at Brussels , 16 September 1987        For the Council
                                            The President
 ---pagebreak---                              FINANCIAL STATEMENT
1. Budget Article concerned A 310
   EEC contribution to administrative expenditure connected with
   international agreements
2. Legal basis
   Article 113 of the EEC Treaty and Council document Proba 20 of
   30 March 1981
3. Proposed classi fi cati on
   Not applicable
4. Description of action and grounds
   4.1 . Objectives :   International Natural Rubber Agreement , 1987
   4.2 . Persons concerned :    natural rubber producers and consumers
5. Nature of expenditure and calculation method
   The Commission 's participation in the International Natural Rubber
   Agreement , 1987 requires no specific expenditure
6. Financial implications of action operating appropriations
   None
7. Comment s
   None
 ---pagebreak---                                      TD/RUBBER.2 / 16
INTERNATIONAL NATURAL RUBBER AGREEMENT , 1987
                  UNITED NATIONS
                       1987
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                                                                 Ot
  UNITED NATIONS CONFERENCE ON NATURAL RUBBER , 1985
                    INTERNATIONAL NATüFtM. RUSSES AGREERENT , 7.9S7
 ---pagebreak---                                           CONTENTS
                                                                              Page
Prearable .                                                                      \
CHAPTER I   -     OBJECTIVES
Article 1         Objectives .                                                   2
CHAPTER II    -    DEFINITIONS
Article 2         Definitions   .                                                3
CHAPTER III     -   ORGANIZATION AND ADMINISTRATION
Article 3         Establishment , headquarters and structure of the
                  International Naturai Rubber Organization .                    5
Article 4         Membership in the Organization .                               5
Article 5         Membership by intergovernmental organizations .                6
CHAPTER IV    -    THE INTERNATIONAL NATURAL RUBBER COUNCIL
Article 6         Composition of the International Natural Rubber Council ...    7
Article 7         Powers and functions of the Council .                          7
Article 8         Delegation of powers .                                         8
                                                                                 8
Article 9         Co-operation with other organizations .                        8
                                                                                 8
Article 10        Admission of observers .                                       8
Article 11        Chairman and Vice-Chairman .                                   8
Article 12        Executive Director , Buffer Stock Manager and
                  other staff .                                                  9
Article 13        Sessions .                                                   10
Article 14        Distribution of votes    .                                    10
Article 15        Voting procedure .                                            11
Article 16        Quorum .                                                      12
Article 17        Decisions .                                                   12
Article 18        Establishment of committees .                                12
Article 19        Panel of experts .                                           13
CHAPTER V   -     PRIVILEGES AND IMMUNITIES
Article 20        Privilèges and immunities    .                               14
CHAPTER VI    -    ACCOUNTS AND AUDIT
Article 21        Financial accounts .                                         15
Article 22        Form of payment    .
Article 23        Audit   .                                                     15
                                            ( iü )
 ---pagebreak---                                       CONTENTS ( continued )
                                                                              Page
CHAPTER VII    -    THE ADMINISTRATIVE ACCOUNT
Article 24       Approval of the administrative budget and assessment
                 of contributions .                                            16
Article 25       Payment of contributions to the administrative budget   ....  16
CHAPTER VIII     -   THE BUFFER STOCK
Article 26       Size of the Buffer Stock .                                     18
Article 27       Financing of the Buffer Stock .                                18
Article 28       Payment of contributions to the Buffer Stock Account .         19
Article 29       Price range    .                                               20
Article 30       Operation of the Buffer Stock .                                21
Article 31       Review and revision of the price range .                       23
Article 32       Market indicator price .                                       25
Article 33       Composition of buffer stocks .                                 25
Article 34       Location of buffer stocks     .                                26
Article 35       Rotation of buffer stocks     .                                26
Article 36        Restriction or suspension of buffer stock operations .        26
Article 37        Penalties relating to contributions to the Buffer
                  Stock Account   .                                             27
Article 38        Adjustment of contributions to the Buffer Stock Account ...   27
Article 39        The Buffer Stock and changes in exchange rates .              29
Article 40        Liquidation procedures for the Buffer Stock Account .         29
CHAPTER IX    - RELATIONSHIP WITH THE COMMON FUND FOR COMMODITIES
Article 41        Relationship with the Common Fund for Commodities .           32
CHAPTER X   -     SUPPLY AND MARKET ACCESS AND OTHER MEASURES
Article 42        Supply and market access .                                    33
Article 43        Other measures .                                              33
CHAPTER XI    -    CONSULTATION ON DOMESTIC POLICIES
Article 44        Consultation .                                                34
CHAPTER XII     -   STATISTICS , STUDIES AND INFORMATION
Article 45        Statistics and information .                                  35
Article 46        Annual assessment , estimâtes and studies .                   35
Article 47        Annual review .                                               36
                                               ( iv )
 ---pagebreak---                                     CONTENTS ( continued )
CHAPTER XIII     -   MISCELLANEOUS                                            -
Article 48       General obligations and liabilities of members . 37
Article 49       Obstacles to trade . 37
Article 50       Transportation and market structure of natural rubber .... 37
Article 51       Differential and remedial measures . 38
Article 52       Relief from obligations .                                    38
Article 53       Fair labour standards .                                      38
CHAPTER XIV    -    COMPLAINTS AND DISPUTES
Article 54       Complaints .                                                 39
Article 55       Disputes .                                                   39
CHAPTER XV   -     FINAL PROVISIONS
Article 56       Signature .                                                  41
Article 57       Depositary .                                                 41
Artide 58        Ratif ication , acceptance and approvai .                     «*l
Article 59       Notification of provisional application .                    41
Article 60       Entry into force .                                           42
Article 61       Accession .                                                   43
Article 62       Amendments .                                                  43
Article 63       Withdrawal . .                                                44
Article 64       Exclusion .                                                   44
Article 65       Settlement of accounts with withdrawing or excluded
                 members or members unable to accept an amendment .            45
Article 66       Duration , extension and termination      .                   46
Article 67       Reservations .                                                46
ANNEXES
Annex A          Shares of individual exporting countries in total net
                 exports of countries , as established for the purposes of
                 article 60
Annex B          Shares of individual importing countries and groups of
                 countries in total net imports of countries , as established
                 for the purposes of article 60
Annex C          Cost of the Buffer Stock as estimated by the Pres!'1
                 of the United Nations Conference on Natural Lubber , 19>’5
                                            (v)
 ---pagebreak---                                         1
                                    PREAMBLE
    The contracting parties ,
    Recalling the Declaration and the Programme of Action on the Establishment
of a New International Economic Order ,
    Recognizing in particular the importance of the United Nations Conference
on Trade and Development resolution 93 ( IV ) , adopted at its fourth session ,
resolution 124 (V ), adopted at its fifth session , and resolution 155 ( VI ),
adopted at its sixth session , on the Integrated Programme for Commodities ,
    Recognizing the importance of natural rubber to the economies of members ,
particularly to the exports of exporting members and to supply requirements of
importing members ,
    Recognizing further that the stabilization of natural rubber prices is in
the interests of producers , consumers and natural rubber markets , and that an
international natural rubber agreement can significantly assist the growth and
development of the natural rubber industry to the benefit of both producers
and consumers ,
    Have agreed as follows :
    _V   General Assembly resolutions 3201 ( S-VI ) and 3202 ( S-VI ) of
1 May 1974 .
 ---pagebreak---                                CHAPTER I - OBJECTIVES
                                      Article 1
                                     Objectives
     The objectives of the International Natural Rubber Agreement , 1987
( hereinafter referred to as " this Agreement ") , with a view to achieving the
relevant objectives as adopted by the United Nations Conference on Trade and
Development in its resolutions 93 ( IV), 124 (V) and 155 (VI ) on the Integrated
Programme for Commodities , are inter alia as follows :
     ( a ) To achieve a balanced growth between the supply of and demand for
natural rubber , thereby helping to alleviate the serious difficulties arising
from surpluses or shortages of natural rubber ;
     ( b ) To achieve stable conditions in natural rubber trade through avoiding
excessive natural rubber price fluctuations , which adversely affect the
long-term interests of both producers and consumers , and stabilizing these
prices without distorting long-term market trends , in the interests of
producers and consumers ;
      ( c ) To help stabilize the export earnings from natural rubber of
exporting members , and to increase their earnings based on expanding natural
rubber export volumes at fair and remunerative prices , thereby helping to
provide the necessary incentives for a dynamic and rising rate of production
and the resources for accelerated economic growth and social development ;
      (d)   To seek to ensure adequate supplies of natural rubber to meet the
requirements of importing members at fair and reasonable prices and to improve
the reliability and continuity of these supplies ;
      ( e ) To take feasible steps in the event of a surplus or shortage of
natural rubber to mitigate the economic difficulties that members might
encounter ;
      ( f)  To seek to expand international trade in and to improve market access
for natural rubber and processed products thereof ;
      (g )  To improve the competitiveness of natural rubber by encouraging
research and development on the problems of natural rubber ;
      (h)   To encourage the efficient development of the natural rubber economy
by seeking to facilitate and promote improvements in the processing , marketing
and distribution of raw natural rubber ; and
      ( i ) To further international co-operation in and consultations on natural
rubber matters affecting supply and demand , and to facilitate promotion and
co-ordination of natural rubber research , assistance and other programmes .
 ---pagebreak---                                             3
                                CHAPTER II - DEFINITIONS
                                        Article 2
                                       Definitions
       For the purposes of this Agreement :
( 1 ) "Natural rubber " means the unvulcanized elastomer , whether in solid or
liquid forms , from Hevea brasiliensis and any other plant which the Council
may decide for the purposes of this Agreement ;
( 2 ) " Contracting party " means a Government , or an intergovernmental
organization referred to in article 5 , which has consented to be bound by this
Agreeement provisionally or definitively ;
( 3 ) " Member " means a contracting party as defined in definition ( 2 ) above ;
 ( 4 ) " Exporting member " means a member which exports natural rubber and has
declared itself to be an exporting member , subject to the agreement of the
Council ;
( 5 ) " Importing member " means a member which imports natural rubber and has
declared itself to be an importing member , subject to the agreement of the
Council ;
 ( 6 ) " Organization " means the International Natural Rubber Organization
referred to in article 3 ;
 ( 7 ) " Council " means the International Natural Rubber Council referred to in
article 6 ;
 ( 8 ) " Special vote " means a vote requiring at least two thirds of the votes
cast by exporting members present and voting and at least two thirds of the
votes cast by importing members present and voting , counted separately , on
condition that these votes are cast by at least half the members in each
category present and voting ;
 ( 9 ) " Exports of natural rubber " means any natural rubber which leaves the
customs territory of any member , and " imports of natural rubber " means any
natural rubber which enters the domestic commerce in the customs territory of
any member , provided that for the purposes of these definitions , customs
territory shall , in the case of a member which comprises more than one customs
territory , be deemed to refer to the combined customs territories of that
member ;
 ( 10 ) " Distributed simple majority vote " means a vote requiring more than half
of the total votes of exporting members present and voting and more than half
of the total votes of importing members present and voting , counted separately ;
 ---pagebreak---                                           4
( 11 ) " Freely usable currencies " means the deutsche mark , the French franc ,
the Japanese yen , the pound sterling , and the United States dollar ;
( 12 ) " Financial year " means the period from 1 January to 31 December
inclusive ;
( 13 ) " Entry into force " means the date on which this Agreement enters into
force provisionally or definitively in accordance with article 60 ;
( 14 ) "Tonne " means a metric ton , i.e. 1,000 kilogrammes ;
( 15 ) " Malaysian/Singapore cent " means the average of the Malaysian sen and
the Singapore cent at the prevailing rates of exchange ;
( 16 ) "Time-weighted net contribution of a member " means its net cash
contributions weighted by the number of days during which the constitutent
parts of the net cash contribution have stayed at the disposition of the
Buffer Stock .   In calculating the number of days , the day when the
contribution was received by the Organization will not be taken into account ,
nor the day when the reimbursement was effected , nor the day when this
Agreement terminates .
 ---pagebreak---                                             5
                    CHAPTER III - ORGANIZATION AND ADMINISTRATION
                                       Article 3
                  Establishment , headquarters and structure of the
                      International Natural Rubber Organization
1.    The International Natural Rubber Organization , established by the
International Natural Rubber Agreement , 1979 , shall continue in being for the
purpose of administering the provisions and supervising the operation of this
Agreement .
2.    The Organization shall function through the International Natural Rubber
Council , its Executive Director and its staff , and such other bodies as are
provided for in this Agreement .
3.    Subject to the requirement in paragraph 4 of this article , the
headquarters of the Organization shall be in Kuala Lumpur , unless the Council ,
by special vote , decides otherwise .
4.    The headquarters of the Organization shall at all times be located in
the territory of a member .
                                        Article 4
                             Membership in the Organization
1.    There shall be two categories of membership , namely ,
       ( a ) Exporting ; and
       ( b ) Importing .
2.    The Council shall establish criteria regarding a change by a member in
its category of membership as defined in paragraph 1 of this article , taking
fully into account the provisions of articles 24 and 27 .      A member which
meets such criteria may change its category of membership subject to the
agreement of the Council by special vote .
3.    Each contracting party shall constitute a single member of the
Organization .
 ---pagebreak---                                      Article 5
                  Membership by intergovernmental organizations
1.    Any reference in this Agreement to a "Government " or "Governments " shall
be construed as including a reference to the European Economic Community and
to any intergovernmental organization having responsibilities in respect of
the negotiation , conclusion and application of international agreements , in
particular commodity agreements . Accordingly , any reference in this Agreement
to signature , ratification , acceptance or approval , or to notification of
provisional application , or to accession shall , in the case of such
intergovernmental organizations , be construed as including a reference to
signature , ratification , acceptance or approval , or to notification of
provisional application , or to accession , by such intergovernmental
organizations .
2.    In the case of votes on matters within their competence , such
intergovernmental organizations shall exercise their voting rights with a
number of votes equal to the total number of votes attributed , in accordance
with article 14 , to their member States .   In such cases , the member States of
such intergovernmental organizations shall not exercise their individual
voting rights .
 ---pagebreak---                                          7
               CHAPTER IV - THE INTERNATIONAL NATURAL RUBBER COUNCIL
                                     Article 6
             Composition of the International Natural Rubber Council
1.    The highest authority of the Organization shall be the International
Natural Rubber Council , which shall consist of all the members of the
Organization .
2.    Each member shall be represented in the Council by one delegate , and may
designate alternates and advisers to attend sessions of the Council .
3.    An alternate delegate shall be empowered to act and vote on behalf of
the delegate during the latter 's absence or in special circumstances .
                                    Article 7
                        Powers and functions of the Council
1.    The Council shall exercise all such powers and perform or arrange for
the performance of all such functions as are necessary to carry out the
provisions of this Agreement , but it shall not have the power , and shall not
be taken to have been authorized by the members , to incur any obligation
outside the scope of this Agreement .     In particular , it shall not have the
capacity to borrow money , without , however , limiting the application of
article 41 , nor shall it enter into any trading contract for natural rubber ,
except as provided for specifically in paragraph 5 of article 30 .      In
exercising its capacity to contract the Council shall ensure that the terms of
paragraph 4 of article 48 are brought by written notice to the attention of
the other parties entering into such contracts , but any failure to do so shall
not in itself invalidate such contracts , nor shall it be deemed to be a waiver
of such limitation of liability of the members .
2.    The Council shall , by special vote , adopt such rules and regulations as
are necessary to carry out the provisions of this Agreement and are consistent
therewith . These shall include its own rules of procedure and those of the
committees referred to in article 18 , rules for the administration and
operation of the Buffer Stock , and the financial and staff regulations of the
Organization .
3.    For the purposes of paragraph 2 of this article , the Council shall , at
its first session after the entry into force of this Agreement , review the
rules and regulations established under the International Natural Rubber
Agreement , 1979 , and adopt them with such modifications as it deems
appropriate . Pending such adoption , the rules and regulations established
under the International Natural Rubber Agreement , 1979 , shall apply .
4.    The Council shall keep such records as are required for the performance
of its functions under this Agreement .
5.    The Council shall publish an annual report on the activities of the
Organization and such other information as it considers appropriate .
 ---pagebreak---                                          8
                                     Article 8
                               Delegation of powers
1.    The Council may , by special vote , delegate to any committee established
under article 18 the exercise of any or all of its powers which , in accordance
with the provisions of this Agreement , do not require a special vote of the
Council . Notwithstanding this delegation , the Council may at any time discuss
and decide any issue that may have been delegated to any of its committees .
2.    The Council may , by special vote , revoke any power delegated to a
committee .
                                     Article 9
                      Co-operation with other organizations
1.    The Council may make whatever arrangements are appropriate for
consultation or co-operation with the United Nations , its organs and
specialized agencies , and other intergovernmental organizations as appropriate .
2.    The Council may also make arrangements for maintaining contact with
appropriate international non-governmental organizations .
                                    Article 10
                              Admission of observers
      The Council may invite any non-member Government , or any of the
organizations referred to in article 9 , to attend as an observer any of the
meetings of the Council or of any committee established under article 18 .
                                    Article 11
                            Chairman and Vice-Chairman
1.    The Council shall elect for each year a Chairman and a Vice-Chairman .
2.    The Chairman and the Vice-Chairman shall be elected , one from among the
representatives of exporting members and the other from among the
representatives of importing members . These offices shall alternate each year
between the two categories of members , provided , however , that this shall not
prohibit the re-election of either or both , under exceptional circumstances ,
by special vote of the Council .
 ---pagebreak---                                          9
3.    In the temporary absence of the Chairman , he shall be replaced by the
Vice-Chairman . In the temporary absence of both the Chairman and the
Vice-Chairman or the permanent absence of one or both of them , the Council may
elect new officers from among the representatives of the exporting members
and/or from among the representatives of the importing members , as
appropriate , on a temporary or permanent basis as may be required .
4.    Neither the Chairman nor any other officer presiding at a meeting of the
Council shall vote at that meeting .    The voting rights of the member he
represents may , however , be exercised in accordance with the provisions of
paragraph 3 of article 6 , or paragraphs 2 and 3 of article 15 .
                                    Article 12
           Executive Director , Buffer Stock Manager and other staff
1.    The Council shall , by special vote , appoint an Executive Director and a
Buffer Stock Manager .
2.    The terms and conditions of appointment of the Executive Director and
the Buffer Stock Manager shall be determined by the Council .
3.    The Executive Director shall be the chief administrative officer of the
Organization and shall be responsible to the Council for the administration
and operation of this Agreement in accordance with the provisions of this
Agreement and decisions of the Council .
4.    The Buffer Stock Manager shall be responsible to the Executive Director
and the Council for the functions conferred upon him by this Agreement , as
well as for such additional functions as the Council may determine . The
Buffer Stock Manager shall be responsible for the day- to-day operation of the
Buffer Stock , and shall keep the Executive Director informed of the general
operations of the Buffer Stock so that the Executive Director may ensure its
effectiveness in meeting the objectives of this Agreement .
5.    The Executive Director shall appoint the staff in accordance with
regulations established by the Council . The staff shall be responsible to the
Executive Director .
6.    Neither the Executive Director nor any member of the staff , including
the Buffer Stock Manager , shall have any financial interest in the rubber
industry or trade , or associated commercial activities .
7.    In the performance of their duties , the Executive Director , the Buffer
Stock Manager and other staff shall not seek or receive instructions from any
member or from any other authority external to the Council or to any committee
established under article 18 .    They shall refrain from any action which might
reflect on their positions as international officials responsible only to the
Council .  Each member shall respect the exclusively international character
of the responsibilities of the Executive Director , the Buffer Stock Manager
and other staff and shall not seek to influence them in the discharge of their
responsibilities .
 ---pagebreak---                                           10
                                      Article 13
                                       Sessions
1.    As a general rule , the Council shall hold one regular session in each
half of the year .     For the purpose of the review of the price range , the
Council shall hold a session , within two weeks , after each 15-month or
30-month period mentioned in article 31 .
2.    In addition to sessions in circumstances specifically provided for in
this Agreement , the Council shall also meet in special session whenever it so
decides or at the request ofs
       ( a ) The Chairman of the Council ?
       ( b ) The Executive Director ?
       ( c ) A majority of the exporting members ?
       ( d ) A majority of the importing members ?
       ( e ) An exporting member or exporting members holding at least 200 votes ?
or
       ( f ) An importing member or importing members holding at least 200 votes .
3.    Sessions shall be held at the headquarters of the Organization , unless
the Council , by special vote , decides otherwise . If on the invitation of any
member the Council meets elsewhere than at the headquarters of the
Organization , that member shall pay the additional costs incurred by the
Council .
4.    Notice of any sessions and the agenda for such sessions shall be
communicated to members by the Executive Director , in consultation with the
Chairman of the Council , at least 30 days in advance , except in cases of
emergency when notice shall be communicated at least 10 days in advance .
                                      Article 14
                                Distribution of votes
1.    The exporting members shall together hold 1,000 votes and the importing
members shall together hold 1,000 votes .
2.    Each exporting member shall receive one initial vote out of the
1,000 votes except that in the case of an exporting member with net exports of
less than 10,000 tonnes annually the initial vote shall not apply .     The
remainder of such votes shall be distributed among the exporting members as
nearly as possible in proportion to the volume of their respective net exports
of natural rubber for the period of five calendar years commencing six
calendar years prior to the distribution of votes .
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3.     The votes of importing members shall be distributed among them as nearly
as possible in proportion to the average of their respective net imports of
natural rubber during the period of three calendar years commencing four
calendar years prior to the distribution of votes , except that each importing
member shall receive one vote even if its proportional net import share is
otherwise not sufficiently large to so justify .
4.     For the purposes of paragraphs 2 and 3 of this article , paragraphs 2
and 3 of article 27 relating to contributions of importing members , and
article 38 , the Council shall , at its first session , establish a table of net
exports of exporting members and a table of net imports of importing members
which shall be revised annually in accordance with this article .
5.     There shall be no fractional votes .
6.     The Council shall , at the first session after the entry into force of
this Agreement , distribute the votes for that year , to remain in effect until
the first regular session of the following year , except as provided for in
paragraph 7 of this article .    Subsequently for each year , the Council shall
distribute the votes at the beginning of the first regular session of that
year . Such distribution shall remain in effect until the first regular
session of the following year , except as provided for in paragraph 7 of this
article .
7.     Whenever the membership of the Organization changes or when any member
has its voting rights suspended or restored under any provision of this
Agreement , the Council shall redistribute the votes within the affected
category or categories of members in accordance with the provisions of this
article .
8.     In the event of the exclusion of a member pursuant to article 64 , or the
withdrawal of a member pursuant to article 63 or article 62 , resulting in the
reduction of the total trade share of those members remaining in    either
category below 80 per cent , the Council shall meet and decide on   the terms ,
conditions and future of this Agreement , including in particular   the need to
maintain effective buffer stock operations without causing undue    financial
burden to the remaining members .
                                    Article 15
                                 Voting procedure
1.     Each member shall be entitled to cast the number of votes it holds in
the Council and shall not be entitled to divide its votes .
2.     By written notification to the Chairman of the Council , any exporting
member may authorize any other exporting member , and any importing member may
authorize any other importing member , to represent its interests and to
exercise its voting rights at any session or meeting of the Council .
3.     A member authorized by another member to cast the latter member 's votes
shall cast such votes as authorized .
4.     When abstaining , a member shall be deemed not to have cast its votes .
 ---pagebreak---                                            12
                                      Artide 16
                                         Quorum
1.    The quorum for any meeting of the Council shall be the presence of a
majority of exporting members and a majority of importing members , provided
that such members hold at least two thirds of the total votes in their
respective categories .
2.     If there is no quorum in accordance with paragraph 1 of this article on
the day fixed for the meeting and on the following day , the quorum on the
third day and thereafter shall be the presence of a majority of exporting
members and a majority of importing members , provided that such members hold a
majority of the total votes in their respective categories .
3.     Representation in accordance with paragraph 2 of article 15 shall be
considered as presence .
                                       Article 17
                                        Decisions
1.     All decisions of the Council shall be taken and all recommendations
shall be made by distributed simple majority vote , unless otherwise provided
for in this Agreement .
2.     Where a member avails itself of the provisions of article 15 and its
votes are cast at a meeting of the Council , such member shall , for the
purposes of paragraph 1 of this article , be considered as present and voting .
                                       Article 18
                              Establishment of committees
 1.    The following committees established by the International Natural Rubber
 Agreement , 1979 , shall continue in being :
        ( a ) Committee on Administration ;
        ( b ) Committee on Buffer Stock Operations ;
        ( c ) Committee on Statistics ; and
        ( d ) Committee on Other Measures .
 Additional committees may also be established by special vote of the Council .
 2.     Each committee shall be responsible to the Council . The Council shall ,
 by special vote , determine the membership and terms of reference of each
 committee .
 ---pagebreak---                                        13
                                   Article 19
                                Panel of experts
1.    The Council may establish a panel of experts from the rubber industry
and trade of exporting and importing members .
2.    Any such panel would be available to provide advice and assistance to
the Council and its committees , particularly on buffer stock operations and on
the other measures referred to in article 43 .
3.    The membership , functions and administrative arrangements of any such
panel would be determined by the Council .
 ---pagebreak---                                         - 14
                        CHAPTER V - PRIVILEGES AND IMMUNITIES
                                      Article 20
                              Privilèges and immunities
1.     The Organization shall have legal personality . In particular , but
without prejudice to the provisions of paragraph 4 of article 48 , the
Organization shall have the capacity to contract , to acquire and dispose of
movable and immovable property , and to institute legal proceedings .
2.     The Organization shall , as soon as possible , seek to conclude with the
Government of the country in which the headquarters of the Organization is
situated ( hereinafter referred to as the host Government ) an agreement
( hereinafter referred to as Headquarters Agreement ) relating to such status ,
privileges and immunities of the Organization , of its Executive Director ,
Buffer Stock Manager as well as other staff and experts , and of members'
delegations , as are reasonably necessary for the purpose of discharging their
functions .
3.     Pending the conclusion of the Headquarters Agreement , the Organization
shall request the host Government to grant , to the extent consistent with its
laws , exemption from taxation on remuneration paid by the Organization to its
employees , and on the assets , income and other property of the Organization .
4.     The Organization may also conclude , with one or more Governments ,
agreements to be approved by the Council relating to such privileges and
immunities as may be necessary for the proper functioning of this Agreement .
5.     If the headquarters of the Organization is moved to another country , the
Government of that country shall , as soon as possible , conclude with the
Organization a Headquarters Agreement to be approved by the Council .
6.     The Headquarters Agreement shall be independent of this Agreement .    It
shall , however , terminate :
        ( a ) By agreement between the host Government and the Organization ;
        ( b) In the event that the headquarters of the Organization is moved from
the country of the host Government ; or
        (c ) In the event that the Organization ceases to exist .
 ---pagebreak---                                         - 15
                           CHAPTER VI - ACCOUNTS AND AUDIT
                                      Article 21
                                 Financial accounts
1.     For the operation and administration of this Agreement , there shall be
established two accounts :
       ( a ) The Buffer Stock Account ; and
       ( b ) The Administrative Account .
2.     All the following receipts and expenditures in the creation , operation
and maintenance of the Buffer Stock shall be brought into the Buffer Stock
Account : contributions from members under article 27 , revenue from sales of or
expenditure in respect of acquisition of buffer stocks ; interest on deposits
of the Buffer Stock Account ; and costs relating to purchase and sales
commissions , storage , transportation and handling , maintenance and rotation ,
and insurance . The Council may , however , by special vote , bring any other
type of receipts or expenditures attributable to buffer stock transactions or
operations into the Buffer Stock Account .
3.     All other receipts and expenditures relating to the operation of this
Agreement shall be brought into the Administrative Account . Such expenditures
shall normally be met by contributions from members assessed in accordance
with article 24 .
4.     The Organization shall not be liable for the expenses of delegations or
observers to the Council or to any committee established under article 18 .
                                     Article 22
                                   Form of payment
       Payments to the Administrative and Buffer Stock Accounts shall be made
in freely usable currencies or currencies which are convertible in the major
foreign exchange markets into freely usable currencies , and shall be exempt
from foreign exchange restrictions .
                                      Article 23
                                         Audit
1.    Each financial year , the Council shall appoint auditors for the purpose
of auditing its books of account .
2.     An independently audited statement of the Administrative Account shall
be made available to members as soon as possible , but not later than four
months , after the close of each financial year . An independently audited
statement of the Buffer Stock Account shall be made available to members not
earlier than 60 days , but not later than four months , after the close of each
financial year . The audited statements of the Administrative and Buffer Stock
Accounts shall be considered for approval by the Council at its next regular
session , as appropriate . A summary of the audited accounts and balance sheet
shall thereafter be published .
 ---pagebreak---                                          16
                     CHAPTER VII - THE ADMINISTRATIVE ACCOUNT
                                    Article 24
                       Approval of the administrative budget
                          and assessment of contributions
1.    At its first session after the entry into force of this Agreement , the
Council shall approve the administrative budget for the period between the
date of the entry into force and the end of the first financial year .
Thereafter , during the second half of each financial year , the Council shall
approve the administrative budget for the following financial year . The
Council shall assess the contribution of each member to that budget in
accordance with paragraph 2 of this article .
2.    The contribution of each member to the administrative budget for each
financial year shall be in the proportion which the number of its votes at the
time the administrative budget for that financial year is approved bears to
the total votes of all the members . In assessing contributions , the votes of
each member shall be calculated without regard to the suspension of any
member 's voting rights or any redistribution of votes resulting therefrom .
3.    The initial contribution to the administrative budget of any Government
which becomes a member after the entry into force of this Agreement shall be
assessed by the Council on the basis of the number of votes to be held by that
member and of the period from the date on which it becomes a member to the end
of the current financial year . The assessment made upon other members for
that financial year shall not , however , be altered .
                                    Article 25
              Payment of contributions to the administrative budget
1.    Contributions to the first administrative budget shall become due on a
date to be decided by the Council at its first session . Contributions to
subsequent administrative budgets shall become due by 28 February in each
financial year . The initial contribution of a Government which becomes a
member after the entry into force of this Agreement , assessed in accordance
with paragraph 3 of article 24 , shall , for the financial year concerned ,
become due 60 days after the date on which it becomes a member .
2.     If a member has not paid its full contribution to the administrative
budget within two months after such contribution becomes due in accordance
with paragraph 1 of this article , the Executive Director shall request that
member to make payment as quickly as possible .   If a member has not paid its
contribution within two months after such request by the Executive Director ,
its voting rights in the Organization shall be suspended unless the Council
decides otherwise .   If a member has still not paid its contribution within
four months after such request by the Executive Director , all rights of that
member under this Agreement shall be suspended by the Council , unless the
Council , by special vote , decides otherwise .
 ---pagebreak---                                        17
3.    For contributions received late , the Council shall levy a penalty charge
at the prime interest rate in the host country from the date the contributions
become due .
4.    A member whose rights have been suspended under paragraph 2 of this
article shall in particular remain liable to pay its contribution and to meet
any other of its financial obligations under this Agreement .
 ---pagebreak---                                          18
                          CHAPTER VIII - THE BUFFER STOCK
                                     Article 26
                              Size of the Buffer Stock
    In order to achieve the objectives of this Agreement , an international
Buffer Stock shall be established . The total capacity of the Buffer Stock
shall be 550,000 tonnes , including the total stocks still held under the
International Natural Rubber Agreement , 1979 . It shall be the sole instrument
of market intervention for price stabilization in this Agreement .   The Buffer
Stock shall comprise :
    (a)   The normal Buffer Stock of 400,000 tonnes ; and
     (b)  The contingency Buffer Stock of 150,000 tonnes .
                                     Article 27
                           Financing of the Buffer Stock
1.  Members commit themselves to finance the total cost of the international
Buffer Stock of 550,000 tonnes established under article 26 , it being
understood that shares in the Buffer Stock Account of the International
Natural Rubber Agreement , 1979 , of those members of the International Natural
Rubber Agreement , 1979 , which became members of this Agreement shall , with the
consent of each member , be carried over to the Buffer Stock Account under this
Agreement in accordance with the procedures determined under the provisions of
paragraph 3 of article 41 of the International Natural Rubber Agreement , 1979 .
2 . The financing of both the normal Buffer Stock and the contingency Buffer
Stock shall be shared equally between the exporting and importing categories
of members .  Contributions of members to the Buffer Stock Account shall be
apportioned according to their shares of the votes in the Council , except as
provided for in paragraphs 3 and 4 of this article .
3 . Any importing member whose share of total net imports as set out in the
table to be established by the Council under paragraph 4 of article 14
represents 0.1 per cent or less of total net imports shall contribute to the
Buffer Stock Account as follows :
     ( a) If its share of total net imports is less than or equal to
0.1 per cent but more than 0.05 per cent , such member shall contribute an
amount assessed on the basis of its actual share of total net imports ;
     ( b) If its share of total net imports is 0.05 per cent or less , such
member shall contribute an amount assessed on the basis of a share of
0.05 per cent of total net imports .
 ---pagebreak---                                         19
4.     During any period in which this Agreement is in force provisionally
either under paragraph 2 or subparagraph ( b ) of paragraph 4 of article 60 , the
financial commitment of each exporting or importing member to the Buffer Stock
Account shall not in total exceed that member 's contribution , calculated on
the basis of the number of votes corresponding to the percentage shares set
out in the tables to be established by the Council under paragraph 4 of
article 14 , of the totals of 275,000 tonnes falling to the exporting and
importing categories of members respectively . The financial obligations of
members when this Agreement is in force provisionally shall be shared equally
by exporting and importing categories of members . At any time when the
aggregate commitment of one category exceeds that of the other , the larger of
the two aggregates shall be brought equal to the smaller of the two
aggregates , each member 's votes in that aggregate being reduced in proportion
to the shares of votes derived from the tables to be established by the
Council under paragraph 4 of article 14 .    Notwithstanding the provisions of
this paragraph and of paragraph 1 of article 28 , a member 's contribution may
not exceed 125 per cent of the amount of its total contribution calculated on
the basis of its share in world trade as indicated in annex A or annex B to
this Agreement .
5.     The total costs of the normal and contingency Buffer Stock of
550,000 tonnes shall be financed by contributions by members in cash to the
Buffer Stock Account . Such contributions may , when relevant , be paid by the
appropriate agencies of members concerned .
6.     The total costs of the 550,000-tonne international Buffer Stock shall be
paid from the Buffer Stock Account . Such costs shall include all expenses
involved in acquiring and operating the 550,000-tonne international Buffer
Stock . In the event that the estimated cost , as given in annex C to this
Agreement , cannot fully cover the total cost of acquisition and operations of
the Buffer Stock , the Council shall meet and make the necessary arrangements
to call up the required contributions to cover such costs according to
percentage shares of votes .
                                    Article 28
              Payment of contributions to the Buffer Stock Account
1.     There shall be an initial contribution in cash to the Buffer Stock
Account equivalent to 70 million Malaysian ringgits . This amount , which
represents a working capital reserve for buffer stock operations , shall be
apportioned among all members according to their percentage shares of votes ,
taking into consideration paragraph 3 of article 27 , and shall be due within
60 days after the first Council session after the entry into force of this
Agreement . The initial contribution of a member due in accordance with this
paragraph shall , with the consent of that member , be made wholly or in part by
transfer of that member 's share in the cash held in the Buffer Stock Account
under the International Natural Rubber Agreement , 1979 .
 ---pagebreak---                                              20
2.    The Executive Director may at any time , and independently of the
arrangements in paragraph 1 of this article , call for contributions provided
that the Buffer Stock Manager has certified that the Buffer Stock Account may
require such funds in the next four months .
3.    When a contribution is called , it shall be due from members within
60 days of the date of notification .        If requested by any member or members
accounting for 200 votes in the Council , the Council shall meet in special
session and may modify or disapprove the call-up based on an assessment of the
need for funds to support buffer stock operations in the next four months . If
the Council cannot reach a decision , contributions shall be due from members
in accordance with the Executive Director 's notification .
4.    Contributions called up for the normal and the contingency Buffer Stock
shall be valued at the lower trigger action price in effect at the time such
contributions are called .
5.    The call-up of contributions to the contingency Buffer Stock shall be
handled as follows :
       ( a ) At the 300,000-tonne review provided for in article 31 , the Council
shall make all financial and other arrangements which may be necessary for the
prompt implementation of the contingency Buffer Stock including call-up of
funds if necessary ;
       ( b ) At the 400,000-tonne review provided for in article 31 , the Council
shall ensure that :
                ( i ) All members have made all necessary arrangements for financing
                      their respective shares of the contingency Buffer Stock ; and
              ( ii ) The contingency Buffer Stock has been invoked and is fully
                      primed for action in accordance with the terms of article 30 .
                                         Article 29
                                         Price range
1.    There shall be established , for the operations of the Buffer Stock :
       ( a ) A reference price ;
       ( b) A lower intervention price ;
       (c ) An upper intervention price ;
       ( d) A lower trigger action price ;
        ( e ) An upper trigger action price ;
        ( f) A lower indicative price ; and
        (g ) An upper indicative price .
 ---pagebreak---                                            21
2.      On the entry into force of this Agreement , the reference price shall be
initially fixed at 201.66 Malaysian/Singapore cents per kilogramme . In the
event that the reference price applicable on 20 March 1987 is revised before
the expiry of the International Natural Rubber Agreement , 1979 , the reference
price shall be adjusted upon the entry into force of this Agreement to the
level applicable at the time of the expiry of the International Natural Rubber
Agreement , 1979 .
3.      There shall be an upper intervention price and a lower intervention
price calculated respectively at plus and minus 15 per cent of the reference
price , unless the Council , by special vote , decides otherwise .
4.      There shall be an upper trigger action price and a lower trigger action
price calculated respectively at plus and minus 20 per cent of the reference
price , unless the Council , by special vote , decides otherwise .
5.      The prices calculated in accordance with paragraphs 3 and 4 of this
article shall be rounded to the nearest cent .
6.      On the entry into force of this Agreement , the lower and upper
indicative prices shall be initially fixed at 150 and 270 Malaysian/Singapore
cents per kilogramme , respectively . In the event that the indicative prices
applicable on 20 March 1987 are revised before the expiry of the International
Natural Rubber Agreement , 1979 , the indicative prices shall be adjusted upon
the entry into force of this Agreement to the levels applicable at the time of
the expiry of the International Natural Rubber Agreement , 1979 .
                                       Article 30
                              Operation of the Buffer Stock
1.      If , in relation to the price range provided for in article 29 , or as
subsequently revised in accordance with the provisions of articles 31 and 39 ,
the market indicator price provided for in article 32 is :
         ( a ) At or above the upper trigger action price , the Buffer Stock Manager
shall defend the upper trigger action price by offering natural rubber for
sale until the market indicator price falls below the upper trigger action
price ;
         ( b ) Above the upper intervention price , the Buffer Stock Manager may
sell natural rubber in defence of the upper trigger action price ;
         ( c ) At the upper or lower intervention price , or between them , the
Buffer Stock Manager shall neither buy nor sell natural rubber , except in
order to carry out his responsibilities for rotation under article 35 ;
         ( d ) Below the lower intervention price , the Buffer Stock Manager may buy
natural rubber in defence of the lower trigger action price ;
         ( e ) At or below the lower trigger action price , the Buffer Stock Manager
shall defend the lower trigger action price by offering to buy natural rubber
until the market indicator price exceeds the lower trigger action price .
 ---pagebreak---                                            22 -
2.      When sales or purchases for the Buffer Stock reach the 400,000-tonne
level , the Council shall , by special vote , decide whether to bring the
contingency Buffer Stock into operation at :
        ( a ) The lower or upper trigger action price ; or
        ( b ) Any price between the lower trigger action price and the lower
indicative price , or the upper trigger action price and the upper indicative
price .
3.      Unless the Council , by special vote , decides otherwise under paragraph 2
of this article , the Buffer Stock Manager shall use the contingency Buffer
Stock to defend the lower indicative price by bringing the contingency Buffer
Stock into operation when the market indicator price is at a level
2 Malaysian/Singapore cents per kilogramme above the lower indicative price ,
and to defend the upper indicative price by bringing the contingency Buffer
Stock into operation when the market indicator price is at a level
2 Malaysian/Singapore cents per kilogramme below the upper indicative price .
4.      The total facilities of the Buffer Stock , including the normal Buffer
Stock and the contingency Buffer Stock , shall be fully utilized to ensure that
the market indicator price does not fall below the lower indicative price or
rise above the upper indicative price .
5.      Sales and purchases by the Buffer Stock Manager shall be effected
through established commercial markets at prevailing prices , and all his
transactions shall be in physical rubber for delivery not later than three
calendar months forward .
6.      To facilitate the operation of the Buffer Stock , the Council shall
establish branch offices and such facilities of the Buffer Stock Manager 's
office , where necessary , in established rubber markets and approved warehouse
locations .
7.      The Buffer Stock Manager shall prepare a monthly report on buffer stock
transactions and the Buffer Stock Account 's financial position .      Thirty days
after the end of each month , the report for that month shall be made available
to members .
8.      The information on buffer stock transactions shall include quantities ,
prices , types , grades and markets of all buffer stock operations , including
rotations effected .      The information on the Buffer Stock Account 's financial
position shall also include interest rates on and terms and conditions of
deposits , the currencies operated in and other relevant information on the
 items referred to in paragraph 2 of article 21 .
 ---pagebreak---                                           23
                                      Article 31
                        Review and revision of the price range
                                  A.  Reference price
1.     Review and revision of the reference price shall be based on market
trends and/or net changes in the Buffer Stock , subject to the provisions of
this section of this article . The reference price shall be reviewed by the
Council 18 months after the last review pursuant to paragraph 1 of article 32
of the International Natural Rubber Agreement , 1979 , or , in the event that
this Agreement enters into force after 1 May 1988 , at the first session of the
Council under this Agreement , and every 15 months thereafter .
       ( a ) If the average of the daily market indicator prices over the
six-month period prior to a review is at the upper intervention price , at the
lower intervention price , or between these two prices , no revision of the
reference price shall take place .
       ( b ) If the average of the daily market indicator prices over the
six-month period prior to a review is below the lower intervention price , the
reference price shall be automatically revised downwards by 5 per cent of its
level at the time of the review , unless the Council , by special vote , decides
on a higher percentage adjustment downwards of the reference price .
       ( c ) If the average of the daily market indicator prices over the
six-month period prior to a review is above the upper intervention price , the
reference price shall be automatically revised upwards by 5 per cent of its
level at the time of the review , unless the Council , by special vote , decides
on a higher percentage adjustment upwards of the reference price .
2.     Following a net change in the Buffer Stock of 100,000 tonnes since the
last assessment under paragraph 2 of article 32 of the International Natural
Rubber Agreement , 1979 , or under this paragraph , the Executive Director shall
convene a special session of the Council to assess the situation . The Council
may , by special vote , decide to take appropriate measures which may include :
       ( a ) Suspension of buffer stock operations ?
        ( b ) Change in the rate of buffer stock purchases or sales ? and
        ( c ) Revision of the reference price .
3.     If net buffer stock purchases or sales amounting to 300,000 tonnes have
taken place since ( a ) the last revision under paragraph 3 of article 32 of the
International Natural Rubber Agreement , 1979 , ( b ) the last revision under this
paragraph , or ( c ) the last revision under paragraph 2 of this article ,
whichever is most recent , the reference price shall be lowered or raised ,
respectively , by 3 per cent of its current level unless the Council , by
special vote , decides to lower or raise it , respectively , by a higher
percentage amount .
                         1'
 ---pagebreak---                                           24
4.      Any adjustments of the reference price for any reason shall not be such
as to allow the trigger action prices to breach the lower or upper indicative
prices .
                                 B.  Indicative prices
5.      The Council may * by special vote , revise the lower and upper indicative
prices at reviews provided for in this section of this article .
6.      The Council shall ensure that any revision of indicative prices is
consistent with evolving market trends and conditions . In this connection ,
the Council shall take into consideration the trend of natural rubber prices ,
consumption , supply , production costs and stocks , as well as the quantity of
natural rubber held in the Buffer Stock and the financial position of the
Buffer Stock Account .
7.      The lower and upper indicative prices shall be reviewed :
        ( a ) 30 months after the last review pursuant to paragraph 7 ( a ) of
article 32 of the International Natural Rubber Agreeement , 1979 , or , in the
event that this Agreement enters into force after 1 May 1988 , at the first
session of the Council under this Agreement , and every 30 months thereafter ;
        ( b ) In exceptional circumstances , at the request of a member or members
accounting for 200 or more votes in the Council ; and
        ( c ) When the reference price has been revised ( i ) downwards since the
last revision of the lower indicative price or the entry into force of the
International Natural Rubber Agreement , 1979 , or ( ii ) upwards since the last
revision of the upper indicative price or the entry into force of the
International Natural Rubber Agreement , 1979 , by at least 3 per cent under
paragraph 3 of this article and at least 5 per cent under paragraph 1 of this
article , or by at least this amount under paragraphs 1 , 2 and/or 3 of this
article , provided that the average of the daily market indicator price for the
60 days subsequent to the last revision of the reference price is either below
the lower intervention price or above the upper intervention price ,
respectively .
8.      Notwithstanding paragraphs 5 , 6 and 7 of this article , there shall be no
upward revision in the lower or upper indicative price if the average of the
daily market indicator prices over the six-month period prior to a review of
the price range under this article is below the reference price . Similarly ,
there shall be no downward revision in the lower or upper indicative price if
the average of the daily market indicator prices over the six-month period
prior to a review of the price range under this article is above the reference
price .
                                                              *
                                                     &
 ---pagebreak---                                         25
                                    Artide 32
                              Market indicator price
1 . There shall be established a daily market indicator price which shall be a
composite , weighted average - reflecting the market in natural rubber - of
daily official current-month prices on the Kuala Lumpur , London , New York and
Singapore markets . Initially , the daily market indicator price shall comprise
RSS 1 , RSS 3 and TSR 20 and their weighting shall be equal . All quotations
shall be converted into f.o.b . Malaysian/Singapore ports in
Malaysian/Singapore currency .
2.  The type/grade composition weightings and method of computing the daily
market indicator price shall be reviewed and may , by special vote , be revised
by the Council to ensure that it reflects the market in natural rubber .
3.  The market indicator price shall be deemed above , at or below price levels
specified in this Agreement if the average of the daily market indicator
prices for the last five market days is above , at or below such price levels .
                                    Article 33
                           Composition of buffer stocks
1.  At its first session after the entry into force of this Agreement , the
Council shall name the internationally recognized standard types and grades of
ribbed smoked sheets and technically specified rubbers for inclusion in the
Buffer Stock , provided that the following criteria are met :
     ( a ) The lowest types and grades of natural rubber authorized for
inclusion in the Buffer Stock shall be RSS 3 and TSR 20 ; and
     ( b ) All types and grades allowed under subparagraph ( a ) of this paragraph
which account for at least 3 per cent of the previous calendar year 's
international trade in natural rubber shall be named .
2.  The Council may , by special vote , change these criteria and/or the
selected types/grades if that is necessary to ensure that the composition of
the Buffer Stock reflects the evolving market situation , attainment of the
stabilization objectives of this Agreement and the need to maintain a high
commercial standard of quality of buffer stocks .
3 . The Buffer Stock Manager should attempt to ensure that the composition of
the Buffer Stock reflects the export/import patterns for natural rubber , while
promoting the stabilization objectives of this Agreement .
4 . The Council may , by special vote , direct the Buffer Stock Manager to
change the composition of the Buffer Stock if the objective of price
stabilization so dictates .
 ---pagebreak---                                        - 26 -
                                     Article 34
                             Location of buffer stocks
 1.   The location of buffer stocks shall ensure economic and efficient
 commercial operations . In accordance with this principle , the buffer stocks
 shall be located in the territory of both exporting and importing members ,
 unless the Council , by special vote , decides otherwise . The distribution of
 the buffer stocks among the members shall be effected in such a way as to
 attain the stabilization objectives of this Agreement , while minimizing costs .
 2.   In order to maintain high commercial quality standards , buffer stocks
 shall be stored only in warehouses approved on the basis of criteria to be
decided by the Council .
 3.  After the entry into force of this Agreement , the Council shall establish
and approve the list of warehouses and the necessary arrangements for their
use . The Council may , if necessary , review the list of warehouses approved by
the Council of the International Natural Rubber Agreement , 1979 , and the
criteria established by the said Council and maintain or revise them
accordingly .
4.   The Council shall also periodically review the location of the buffer
stocks and may , by special vote , direct the Buffer Stock Manager to change the
location of the buffer stocks to ensure economic and efficient commercial
operations .
                                     Article 35
                             Rotation of buffer stocks
     The Buffer Stock Manager shall ensure that all buffer stocks are purchased
and maintained at a high commercial standard of quality . He shall rotate
natural rubber stored in the Buffer Stock as necessary to ensure such
standards , taking into appropriate consideration the cost of such rotation and
its impact on the stability of the market . The costs of rotation shall be
brought into the Buffer Stock Account .
                                    Article 36
               Restriction or suspension of buffer stock operations
1 . Notwithstanding the provisions of article 30 , the Council , if in session ,
may , by special vote , restrict or suspend the operations of the Buffer Stock ,
if in its opinion the discharge of the obligations laid upon the Buffer Stock
Manager by that article will not achieve the objectives of this Agreement .
2 . If the Council is not in session , the Executive Director may , after
consultation with the Chairman , restrict or suspend the operations of the
Buffer Stock , if in his opinion the discharge of the obligations laid upon the
Buffer Stock Manager by article 30 will not achieve the objectives of this
Agreement .
 ---pagebreak---                                         27
3.  Immediately after a decision to restrict or suspend the operations of the
Buffer Stock under paragraph 2 of this article , the Executive Director shall
convene a session of the Council to review such decision . Notwithstanding the
provisions of paragraph 4 of article 13 , the Council shall meet within 10 days
after the date of restriction or suspension and shall , by special vote ,
confirm or cancel such restriction or suspension . If the Council cannot come
to a decision at that session , buffer stock operations shall be resumed
without any restriction imposed under this article .
4.  As long as any restriction or suspension of buffer stock operations
decided in accordance with this article remains in force , the Council shall
review this decision at intervals of not longer than three months . If at a
session to make such a review the Council does not confirm , by special vote ,
the continuation of the restriction or suspension , or does not come to a
decision , buffer stock operations shall be resumed without restriction .
                                    Article 37
                   Penalties relating to contributions to the
                               Buffer Stock Account
1 . If a member does not fulfil its obligation to contribute to the
Buffer Stock Account by the last day such contribution becomes due , it shall
be considered to be in arrears . A member in arrears for 60 days or more shall
not count as a member for the purpose of voting on matters covered in
paragraph 2 of this article .
2 . The voting and other rights in the Council of a member in arrears for
60 days or more under paragraph 1 of this article shall be suspended , unless
the Council , by special vote , decides otherwise .
3 . A member in arrears shall bear interest charges at the prime rate in the
host country beginning on the last day such payments become due . Coverage of
arrears by the remaining importing and exporting members shall be on a
voluntary basis .
4.  When the default has been remedied to the satisfaction of the Council , the
voting and other rights of the member in arrears for 60 days or more shall be
restored . If the arrears have been made good by other members , these members
shall be fully reimbursed .
                                    Article 38
             Adjustment of contributions to the Buffer Stock Account
1 . When the votes are redistributed at the first regular session in each
financial year or whenever the membership of the Organization changes , the
Council shall make the necessary adjustment of each member 's contribution to
the Buffer Stock Account in accordance with the provisions of this article .
For this purpose , the Executive Director shall determine :
 ---pagebreak---                                          28 -
     ( a ) The net cash contribution of each member , by subtracting re"undr of
contributions to that member in accordance with paragraph 2 of this article
from the sum of all contributions paid by that member since the entry into
force of this Agreement ;
     ( b)  The total net call-ups , by summing the consecutive call-ups and
subtracting the total of refunds made in accordance with paragraph 2 of this
article ;
     (c ) The revised net contribution for each member , by apportioning the
total net call-ups among members on the basis of each member 's revised voting
share in the Council pursuant to article 14 , subject to paragraph ^
article 27 , provided that the voting share of each member shall , for the
purpose of this article , be calculated without regard to the suspension of any
member 's voting rights or any redistribution of votes resulting therefrom .
Where a member 's net cash contribution exceeds its revised net contribution , a
refund of the difference minus any outstanding penalty interest on arrears
shall be made to that member from the Buffer Stock Account .    Where a member 's
revised net contribution exceeds its net cash contribution , a payment of the
difference plus any outstanding penalty interest on arrears shall be made by
that member to the Buffer Stock Account .
2 . If the Council , having regard to paragraphs 2 and 3 of article 28 , decides
that there are net cash contributions in excess of funds required to support
buffer stock operations within the next four months , the Council shall refund
such excess net cash contributions less initial contributions unless it
decides , by special vote , either to make no such refund or to refund a smaller
amount . Members' shares of the amount to be refunded shall be in proportion
to their net cash contributions , minus any outstanding penalty interest on
arrears .    The contribution liability of members in arrears shall be reduced
in the same proportion as the refund bears to the total net cash contributions .
3 . At the request of a member , the refund to which it is entitled may be
retained in the Buffer Stock Account . If a member requests that its refund be
retained in the Buffer Stock Account , this amount shall be credited against
any additional contribution requested in accordance with article 28 .    The
credit retained in the Buffer Stock Account at the request of a member shall
bear interest at the average rate of interest earned on funds in the Buffer
Stock Account , beginning the last day when the amount should normally be
reimbursed to that member until the day preceding the actual reimbursement .
4.  The Executive Director shall immediately notify members of any required
payments or refunds resulting from adjustments made in accordance with
paragraphs 1 and 2 of this article . Such payments by members or refunds to
members shall be made within 60 days from the date the Executive Director
issues such notification .
5.  In the event that the amount of cash in the Buffer Stock Account exceeds
the value of total net cash contributions of memoers , such surplus funds snail
be distributed upon termination of this Agreement .
 ---pagebreak---                                         29
                                    Article 39
                 The Buffer Stock and changes in exchange rates
1.    In the event that the exchange rate between the Malaysian
ringgit/Singapore dollar and the currencies of the major natural rubber
exporting and importing members changes to the extent that the operations of
the Buffer Stock are significantly affected , the Executive Director shall , in
accordance with article 36 , or members may , in accordance with article 13 ,
call for a special session of the Council . The Council shall meet within
10 days to confirm or cancel measures already taken by the Executive Director
pursuant to article 36 , and may , by special vote , decide to take appropriate
measures , including the possibility of revising the price range , pursuant to
the principles of the first sentences of paragraphs 1 and 6 of article 31 .
2.    The Council shall , by special vote , establish a procedure to determine a
significant change in the parities of these currencies for the sole purpose of
ensuring the timely convening of the Council .
3.    In the event that there is a divergency between the Malaysian ringgit
and the Singapore dollar to the extent that buffer stock operations are
significantly affected , the Council shall meet to review the situation and may
consider the adoption of a single currency .
                                    Article 40
               Liquidation procedures for the Buffer Stock Account
1.    On termination of this Agreement , the Buffer Stock Manager shall
estimate the total expense of liquidating or transferring to a new
international natural rubber agreement the assets of the Buffer Stock Account
in accordance with the provisions of this article , and shall reserve that
amount in a separate account . If these balances are inadequate , the Buffer
Stock Manager shall sell a sufficient quantity of natural rubber in the Buffer
Stock to provide the additional sum required .
2.    Each member 's share in the Buffer Stock Account shall be calculated as
follows :
       (a)  The value of the Buffer Stock shall be the value of the total
quantity of natural rubber of each type/grade therein , calculated at the
lowest of the current prices of the respective types/grades on markets
referred to in article 32 during the 30 market days preceding the date of
termination of this Agreement *
 ---pagebreak---                                         - 30
        ( b ) The value of the Buffer Stock Account shall be the value of the
Buffer Stock plus the cash assets of the Buffer Stock Account on the date of
the termination of this Agreement less any amount reserved under paragraph 1
of this article ?
       (c)    Each member 's net cash contribution shall be the sum of its
contributions paid throughout the duration of this Agreement less all refunds
made under article 38 , penalty interest on arrears paid in accordance with
paragraph 3 of article 37 shall not constitute a contribution to the Buffer
Stock Account }
       (d ) If the value of the Buffer Stock Account is either greater or less
than total net cash contributions , the surplus shall be allocated among
members in proportion to each member 's time-weighted net contribution share
under this Agreement . Any deficit shall be allocated among members in
proportion to each member 's average number of votes held during its period of
membership . In assessing the share of the deficits to be borne by each
member , the votes of each member shall be calculated without regard to the
suspension of any member 's voting rights or any redistribution of votes
resulting therefrom }
       ( e)   Each member 's share in the Buffer Stock Account shall comprise its
net cash contribution , reduced or increased by its shares in deficits or
surpluses in the Buffer Stock Account , and reduced by its liability , if any ,
for outstanding interest on arrears .
3.     If this Agreement is to be immediately replaced with a new international
natural rubber agreement , the Council shall , by special vote , adopt procedures
to ensure efficient transfer to the new agreement , as required by that
agreement , of shares in the Buffer Stock Account of members which intend to
participate in the new agreement . Any member which does not wish to
participate in the new agreement shall be entitled to the payment of its share :
       (a)    From available cash in proportion to its percentage share of the
total net cash contributions to the Buffer Stock Account , within three months }
and
       ( b ) From the net proceeds from the disposal of the buffer stocks , by
way of orderly sales or by way of transfer to the new international natural
rubber agreement at current market prices , which must be concluded within
12 months } unless the Council decides , by special vote , to increase payments
under subparagraph ( a ) of this paragraph .
4.     If this Agreement terminates without being replaced by a new
international natural rubber agreement which provides for a buffer stock , the
Council shall , by special vote , adopt procedures to govern orderly disposal of
the Buffer Stock within the maximum period specified in paragraph 6 of
article 66 , subject to the following constraints :
       (a)    No further purchases of natural rubber shall be made }          i
       ( b)   The Organization shall incur no new expenses except tho:   necessary
                                                                         necessary
to dispose of the Buffer Stock .
 ---pagebreak---                                         31
5.    Subject to an election by any member to take natural rubber in
accordance with paragraph 6 of this article , any cash which remains in the
Buffer Stock Account shall be forthwith distributed to members in proportion
to their shares as determined in paragraph 2 of this article .
6.    In lieu of all or part of a cash payment , each member may elect to take
its share in the assets of the Buffer Stock Account in natural rubber , subject
to procedures adopted by the Council .
7.    The Council shall adopt appropriate procedures for adjustment and
payment of members' shares in the Buffer Stock Account . This adjustment shall
account for :
       ( a ) Any discrepancy between the price of natural rubber specified in
subparagraph ( a ) of paragraph 2 of this article and the prices at which part
or all of the Buffer Stock is sold pursuant to procedures for disposal of the
Buffer Stock } and
       (b)   The difference between estimated and actual liquidation expenses .
8.    The Council shall , within 30 days following final transactions of the
Buffer Stock Account , meet to effect final settlement of accounts among
members within 30 days thereafter .
 ---pagebreak---                                       32
                CHAPTER IX - RELATIONSHIP WITH THE COMMON FUND
                                FOR COMMODITIES
                                  Article 41
               Relationship with the Common Fund for Commodities
      When the Common Fund for Commodities becomes operational , the Council
shall take full advantage of the facilities of the Common Fund according to
the principles set out in the Agreement establishing the Common Fund for
Commodities . The Council shall for this purpose negotiate with the
Common Fund mutually acceptable terms and modalities for an association
agreement to be signed with the Common Fund .
 ---pagebreak---                                          33
              CHAPTER X - SUPPLY AND MARKET ACCESS AND OTHER MEASURES
                                     Article 42
                              Supply and market access
1.  Exporting members to the fullest extent possible undertake to pursue
policies and programmes which maintain continuous availability to consumers of
natural rubber supplies .
2.  Importing members to the fullest extent possible undertake to pursue
policies which will maintain access to their markets for natural rubber .
                                     Article 43
                                   Other measures
1 . With a view to achieving the objectives of this Agreement , the Council
shall identify and propose appropriate measures and techniques directed
towards promoting ;
     ( a ) The development of the natural rubber economy by producing members ,
through expanded and improved production , productivity and marketing , thereby
increasing the export earnings of producing members while at the same time
improving the reliability of supply . For this purpose , the Committee on Other
Measures shall undertake economic and technical analyses in order to identify :
          (i)  Natural rubber research and development programmes and projects
               of benefit to exporting and importing members , including
               scientific research in specific areas ?
       ( ii )  Programmes and projects to improve the productivity of the
               natural rubber industry ?
     ( iii )   Ways and means to upgrade natural rubber supplies and achieve
                uniformity in quality specification and presentation of natural
                rubber ? and
       ( iv )  Methods of improving the processing , marketing and distribution
               of raw natural rubber ?
     ( b ) The development of end-uses of natural rubber . For this purpose , the
Committee on Other Measures shall undertake appropriate economic and technical
analyses in order to identify programmes and projects leading to increased and
new uses of natural rubber .
2.  The Council shall consider the financial implications of such measures and
techniques and seek to promote and facilitate the provision of adequate
financial resources , as appropriate , from such sources as international
financial institutions and the Second Account of the Common Fund for
Commodities , when established .
3 . The Council may make recommendations , as appropriate , to members ,
international institutions and other organizations to promote the
implementation of specific measures under this article .
4 . The Committee on Other Measures shall periodically review the progress of
those measures which the Council decides to promote and recommend , and shall
report thereon to the Council .
 ---pagebreak---                                        34
                CHAPTER XI - CONSULTATION ON DOMESTIC POLICIES
                                   Article 44
                                  Consultation
      The Council shall consult , at the request of any member , on government
natural rubber policies directly affecting supply or demand . The Council may
submit its recommendations to members for their consideration .
 ---pagebreak---                                         35
                CHAPTER XII - STATISTICS , STUDIES AND INFORMATION
                                    Article 45
                            Statistics and information
1 . The Council shall collect , collate and as necessary publish such
statistical information on natural rubber and related areas as is necessary
for the satisfactory operation of this Agreement .
2.  Members shall promptly and to the fullest extent possible furnish to the
Council available data by specific types and grades concerning production ,
consumption and international trade in natural rubber .
3 . The Council may also request members to furnish other available
information , including information on related areas which may be required for
the satisfactory operation of this Agreement .
4.  Members shall furnish all the above-mentioned statistics and information
within a reasonable time to the fullest extent possible consistent with their
national legislation and by the ways most appropriate for them .
5.  The Council shall establish close relationships with appropriate
international organizations , including the International Rubber Study Group ,
and with commodity exchanges in order to help ensure the availability of
recent and reliable data on production , consumption , stocks , international
trade and prices of natural rubber , and other factors that influence demand
for and supply of natural rubber .
6 . The Council shall endeavour to ensure that no information published shall
prejudice the confidentiality of the operations of persons or companies
producing , processing or marketing natural rubber or related products .
                                    Article 46
                    Annual assessment , estimâtes and studies
1 . The Council shall prepare an annual assessment on the world natural rubber
situation and related areas in the light of the information supplied by
members and from all relevant intergovernmental and international
organizations .
2 . At least once in every half year , the Council shall also estimate
production , consumption , exports and imports of natural rubber by specific
types and grades , if possible , for the following six months . It shall inform
the members of these estimates .
3 . The Council shall undertake , or make appropriate arrangements to
undertake , studies of trends in natural rubber production , consumption , trade ,
marketing and prices , as well as of the short-term and long-term problems of
the world natural rubber economy .
 ---pagebreak---                                        36
                                  Artide 47
                                 Annual review
1.  The Council shall annually review the operation of this Agreement in the
light of the objectives set out in article 1 . It shall inform members of the
results of the review .
2 . The Council may then formulate recommendations to members , and thereafter
take measures within its competence to improve the effectiveness of the
operation of this Agreement .
 ---pagebreak---                                        37
                          CHAPTER XIII - MISCELLANEOUS
                                   Artide 48
                 General obligations and liabilities of members
1.  Members shall for the duration of this Agreement use their best endeavours
and co-operate to promote the attainment of the objectives of this Agreement
and shall not take any action in contradiction to those objectives .
2 . Members shall in particular seek to improve the conditions of the natural
rubber economy and to encourage the production and use of natural rubber in
order to promote the growth and the modernization of the natural rubber
economy for the mutual benefit of producers and consumers .
3.  Members shall accept as binding all decisions of the Council under this
Agreement and will not implement measures which would have the effect of
limiting or running counter to those decisions .
4 . The liability of members arising from the operation of this Agreement ,
whether to the Organization or to third parties , shall be limited to the
extent of their obligations regarding contributions to the administrative
budget and to financing of the Buffer Stock under and in accordance with
chapters VII and VIII of this Agreement and any obligations that may be
assumed by the Council under article 41 .
                                   Artide 49
                               Obstacles to trade
1 . The Council shall , in accordance with the annual assessment of the world
natural rubber situation referred to in article 46 , identify any obstacles to
the expansion of trade in natural rubber in its raw , semi-processed or
modified forms .
2.  The Council may , in order to further the purposes of this article , make
recommendations to members to seek in appropriate international forums
mutually acceptable practical measures designed to remove progressively and ,
where possible , to eliminate such obstacles . The Council shall periodically
examine the results of such recommendations .
                                   Article 50
             Transportation and market structure of natural rubber
    The Council should encourage and facilitate the promotion of reasonable
and equitable freight rates and improvements in the transport system , so as to
provide regular supplies to markets and to effect savings in the cost of the
products marketed .
 ---pagebreak---                                       - 38 -
                /
                                    Artide 51
                        Differential and remedial measures
     Developing importing members , and least developed countries which are
members , whose interests are adversely affected by measures taken under this
Agreement may apply to the Council for appropriate differential and remedial
measures . The Council shall consider taking such appropriate measures in
accordance with paragraphs 3 and 4 of section III of resolution 93 ( IV) of the
United Nations Conference on Trade and Development .
                                    Article 52
                              Relief from obligations
1.   Where it is necessary on account of exceptional circumstances or emergency
or force majeure not expressly provided for in this Agreement , the Council
may , by special vote , relieve a member of an obligation under this Agreement
if it is satisfied by an explanation from that member regarding the reasons
why the obligation cannot be met .
2 . The Council , in granting relief to a member under paragraph 1 of this
article , shall state explicitly the terms and conditions on which , and the
period for which , the member is relieved of such obligation , and the reasons
for which the relief is granted .
                                    Article 53
                               Fair labour standards
     Members declare that they will endeavour to maintain labour standards
designed to improve the levels of living of workers in their respective
natural rubber sectors .
 ---pagebreak---                                                 39
                              CHAPTER XIV - COMPLAINTS AND DISPUTES
                                            Article 54
                                            Complaints
1 . Any complaint that a member has failed to fulfil its obligations under
this Agreement shall , at the request of the member making the complaint , be
referred to the Council , which , subject to prior consultation with the members
concerned , shall take a decision on the matter .
2 . Any decision by the Council that a member is in breach of its obligations
under this Agreement shall specify the nature of the breach .
3 . Whenever the Council , whether as the result of a complaint or otherwise ,
finds that a member has committed a breach of this Agreement , it may , by
special vote , and without prejudice to such other measures as are specifically
provided for in other articles of this Agreements
      ( a ) Suspend that member 's voting rights in the Council and , if it deems
necessary , suspend any other rights of such member , including those of holding
office in the Council or in any committee established under article 18 and of
being eligible for membership of such committees , until it has fulfilled its
obligations ; or
      ( b ) Take action under article 64 , if such breach significantly impairs
the operation of this Agreement .
                                            Article 55
                                             Disputes
1 . Any dispute concerning the interpretation or application of this Agreement
which is not settled among the members involved shall , at the request of any
member party to the dispute , be referred to the Council for decision .
2 . In any case where a dispute has been referred to the Council under
paragraph 1 of this article , a majority of members holding at least one third
of the total votes may require the Council , after discussion , to seek the
opinion of an advisory panel constituted under paragraph 3 of this article on
the issue in dispute before giving its decision .
3.    (a)     Unless the Council , by special vote , decides otherwise , the advisory
panel shall consist of five persons as follows ;
        ( i ) Two persons , one having wide experience in matters of the kind in
              dispute and the other having legal standing and experience , nominated
              by the exporting members ;
      ( ii ) Two such persons nominated by the importing members ; and
    ( iii ) A chairman selected unanimously by the four persons nominated under
              ( i ) and ( ii ) of this subparagraph or , if they fail to agree , by the
              Chairman of the Council .
 ---pagebreak---                                          40
    (b)  Nationals of members and of non-members shall be eligible to serve on
the advisory panel .
    (c ) Persons appointed to the advisory panel shall act in their personal
capacities and without instructions from any government .
    (d)  The expenses of the advisory panel shall be paid by the Organization .
4 . The opinion of the advisory panel and the reasons therefor shall be
submitted to the Council which , after considering all the relevant
information , shall , by special vote , decide the dispute .
 ---pagebreak---                                          41
                          CHAPTER XV - FINAL PROVISIONS
                                     Article 56
                                      Signature
     This Agreement shall be open for signature at United Nations Headquarters
from 1 May to 31 December 1987 inclusive by the Governments invited to the
United Nations Conference on Natural Rubber , 1985 .
                                    Article 57
                                    Depositary
     The Secretary-General of the United Nations is hereby designated as the
depositary of this Agreement .
                                     Article 58
                      Ratification , acceptance and approval
1 . This Agreement shall be subject to ratification , acceptance or approval by
the signatory Governments in accordance with their respective constitutional
or institutional procedures .
2 . Instruments of ratification , acceptance or approval shall be deposited
with the depositary not later than 1 January 1989 .    The Council may , however ,
grant extensions of time to signatory Governments which have been unable to
deposit their instruments by that date .
3 . Each Government depositing an instrument of ratification , acceptance or
approval shall , at the time of such deposit , declare itself to be an exporting
member or an importing member .
                                     Article 59
                     Notification of provisional application
1 . A signatory Government which intends to ratify , accept or approve this
Agreement , or a Government for which the Council has established conditions
for accession but which has not yet been able to deposit its instrument , may
at any time notify the depositary that it will fully apply this Agreement
provisionally , either when it enters into force in accordance with article 60
or , if it is already in force , at a specified date .
 ---pagebreak---                                         42
              \
2 . Notwithstanding the provisions of paragraph 1 of this article , a
Government may provide in its notification of provisional application that it
will apply this Agreement only within the limitations of its constitutional
and/or legislative procedures . However , such Government shall meet all its
financial obligations pertaining to the Administrative Account . The
provisional membership of a Government which notifies in this manner shall not
exceed 12 months from the provisional entry into force of this Agreement . In
case of the need for a call-up of funds for the Buffer Stock Account within
the 12-month period , the Council shall decide on the status of a Government
holding provisional membership under this paragraph .
                                    Article 60
                                Entry into force
1 . This Agreement shall enter into force definitively on 23 October 1987 or
on any date thereafter , if by that date Governments accounting for at least
80 per cent of net exports as set out in annex A to this Agreement , and
Governments accounting for at least 80 per cent of net imports as set out in
annex B to this Agreement , have deposited their instruments of ratification ,
acceptance , approval or accession , or have assumed full financial commitment
to this Agreement .
2 . This Agreement shall enter into force provisionally on 23 October 1987 , or
on any date before 1 January 1989 , if Governments accounting for at least
75 per cent of net exports as set out in annex A to this Agreement , and
Governments accounting for at least 75 per cent of net imports as set out in
annex B to this Agreement , have deposited their instruments of ratification ,
acceptance or approval , or have notified the depositary under paragraph 1 of
article 59 that they will apply this Agreement provisionally and assume full
financial commitment to this Agreement .    The Agreement shall remain in force
provisionally up to a maximum of 12 months , unless it enters into force
definitively under paragraph 1 of this article or the Council decides
otherwise in accordance with paragraph 4 of this article .
3 . If this Agreement does not come into force provisionally Under paragraph 2
of this article by 1 January 1989 , the Secretary-General of the United Nations
shall invite , at the earliest time he considers practicable after that date ,
the Governments which have deposited instruments of ratification , acceptance
or approval or have notified him that they will apply this Agreement
provisionally , to meet with a view to recommending whether or not such
Governments should take the necessary steps to put this Agreement
provisionally or definitively into force among themselves in whole or in
part . If no conclusion is reached at this meeting , the Secretary-General of
the United Nations may convene such further meetings as he considers
appropriate .
 ---pagebreak---                                          43
4 . If the requirements for definitive entry into force of this Agreement
under paragraph 1 of this article have not been met within 12 calendar months
of the provisional entry into force of this Agreement under paragraph 2 of
this article , the Council shall , not later than one month before the end of
the 12-month period mentioned above , review the future of this Agreement and ,
subject to paragraph 1 of this article , by special vote , decide :
     (a)  To put this Agreement definitively into force among the current
members in whole or in part )
     (b)  To keep this Agreement provisionally in force among the current
members in whole or in part for an additional year * or
     (c ) To renegotiate this Agreement .
If no decision is reached by the Council , this Agreement shall terminate at
the expiry of the 12-month period . The Council shall inform the depositary of
any decision taken under this paragraph .
5 . For any Government that deposits its instrument of ratification ,
acceptance , approval or accession after the entry into force of this
Agreement , it shall enter into force for that Government on the date of such
deposit .
6 . The Executive Director of the Organization shall convene the first session
of the Council as soon as possible after the entry into force of this
Agreement .
                                     Article 61
                                      Accession
1 . This Agreement shall be open for accession by the Government of any
State .   Accession shall be subject to conditions to be established by the
Council , which shall include inter alia a time limit for the deposit of
instruments of accession , the number of votes to be held and financial
obligations .    The Council may , however , grant extensions of time to
Governments which are unable to deposit their instruments of accession within
the time limit set in the conditions of accession .
2 . Accession shall be effected by the deposit of an instrument of accession
with the depositary .    Instruments of accession shall state that the
Government accepts all the conditions established by the Council .
                                     Article 62
                                     Amendments
1.  The Council may , by special vote , recommend amendments of this Agreement
to the members .
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2.  The Council shall fix a date by which members shall notify the depositary
of their acceptance of the amendment .
3.  An amendment shall become effective 90 days after the despositary has
received notifications of acceptance from members constituting at least
two thirds of the exporting members and accounting for at least 85 per cent of
the votes of the exporting members , and from members constituting at least
two thirds of the importing members and accounting for at least 85 per cent of
the votes of the importing members .
4 . After the depositary informs the Council that the requirements for the
amendment to become effective have been met , and notwithstanding the
provisions of paragraph 2 of this article relating to the date fixed by the
Council , a member may still notify the depositary of its acceptance of the
amendment , provided that such notification is made before the amendment
becomes effective .
5 . Any member which has not notified its acceptance of an amendment by the
date on which such amendment becomes effective shall cease to be a contracting
party as from that date , unless such member has satisfied the Council that its
acceptance could not be obtained in time owing to difficulties in completing
its constitutional or institutional procedures , and the Council decides to
extend for that member the period for acceptance of the amendment . Such
member shall not be bound by the amendment before it has notified its
acceptance thereof .
6 . If the requirements for the amendment to become effective have not been
met by the date fixed by the Council in accordance with paragraph 2 of this
article , the amendment shall be considered withdrawn .
                                   Article 63
                                   Withdrawal
1 . A member may withdraw from this Agreement at any time after the entry into
force of this Agreement by giving notice of withdrawal to the depositary .
That member shall simultaneously inform the Council of the action it has taken .
2.  One year after its notice is received by the depositary , that member shall
cease to be a contracting party to this Agreement .
                                   Article 64
                                     Exclusion
    If the Council decides that any member is in breach of its obligations
under this Agreement and decides further that such breach significantly
impairs the operation of this Agreement , it may , by special vote , exclude that
member from this Agreement . The Council shall immediately so notify the
depositary . One year after the date of the Council 's decision , that member
shall cease to be a contracting party to this Agreement .
 ---pagebreak---                                           45
                                    Artide 65
                Settlement of accounts with withdrawing or excluded
                 members or members unable to accept an amendment
1.  In accordance with this article , the Council shall determine any
settlement of accounts with a member which ceases to be a contracting party to
this Agreement owing to :
     (a)   Non-acceptance of an amendment to this Agreement pursuant to
article 62 ;
     ( b)  Withdrawal from this Agreement pursuant to article 63 ;      or
     (c )  Exclusion from this Agreement pursuant to article 64 .
2 . The Council shall retain any contribution paid to the Administrative
Account by a member which ceases to be a contracting party to this Agreement .
3.  The Council shall refund the share in the Buffer Stock Account in
accordance with article 40 to a member which ceases to be a contracting party
owing to non-acceptance of an amendment to this Agreement , withdrawal or
exclusion , less its share in any surpluses .
     (a)   Such refund to a member which ceases to be a contracting party owing
to non-acceptance of an amendment to this Agreement shall be made one year
after the amendment concerned enters into force .
     ( b ) Such refund to a member which withdraws shall be made within 60 days
after that member ceases to be a contracting party to this Agreement , unless
as a result of this withdrawal the Council decides to terminate this Agreement
under paragraph 5 of article 66 prior to such a refund , in which case the
provisions of article 40 and paragraph 6 of article 66 shall apply .
     ( c ) Such refund to a member which is excluded shall be made within
60 days after a member ceases to be a contracting party to this Agreement .
4 . In the event that the Buffer Stock Account is unable to settle the payment
in cash due under subparagraph ( a ) , ( b ) or ( c ) of paragraph 3 of this article
without either undermining the viability of the Buffer Stock Account or
leading to a call-up of additional contributions from members to cover such
refunds , payment shall be deferred until the requisite amount of natural
rubber in the Buffer Stock can be sold at or above the upper intervention
price . In the event that , before the end of the one-year period specified in
article 63 , the Council informs a withdrawing member that payment will have to
be deferred in accordance with this paragraph , the period of one year between
notification of intention to withdraw and the actual withdrawal may , if the
withdrawing member so wishes , be extended until such time as the Council
informs that member that payment of its share can be effected within 60 days .
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5.  A member which has received an appropriate refund under this article shall
not be entitled to any share of the proceeds of liquidation of the
Organization .  Nor shall such a member be liable for any deficit incurred by
the Organization after such refund has been made .
                                     Article 66
                       Duration , extension and termination
1.  This Agreement shall remain in force for a period of five years after its
entry into force , unless extended under paragraph 3 or terminated under
paragraph 4 or paragraph 5 of this article .
2 . Before the expiry of the five-year period referred to in paragraph 1 of
this article , the Council may , by special vote , decide to renegotiate this
Agreement .
3 . The Council may , by special vote , extend this Agreement by a period or
periods not exceeding two years in all , commencing from the date of expiry of
the five-year period specified in paragraph 1 of this article .
4.  If a new international natural rubber agreement is negotiated and enters
into force during any period of extension of this Agreement pursuant to
paragraph 3 of this article , this Agreement , as extended , shall terminate upon
the entry into force of the new agreement .
5 . The Council may at any time , by special vote , decide to terminate this
Agreement with effect from such date as it may determine .
6 . Notwithstanding the termination of this Agreement , the Council shall
continue in being for a period not exceeding three years to carry out the
liquidation of the Organization , including the settlement of accounts , and the
disposal of assets in accordance with the provisions of article 40 and subject
to relevant decisions to be taken by special vote , and shall have during that
period such powers and functions as may be necessary for these purposes .
7.  The Council shall notify the depositary of any decision taken under this
article .
                                     Article 67
                                    Reservations
    No reservations may be made with respect to any of the provisions of this
Agreement .
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    IN WITNESS WHEREOF the undersigned , being duly authorized thereto , have
affixed their signatures under this Agreement on the dates indicated .
    DONE at Geneva , this twentieth day of March , one thousand nine hundred and
eighty-seven , the texts of this Agreement in the Arabic , Chinese , English ,
French , Russian and Spanish languages being equally authentic .
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                                    Annex A
  Shares of individual exporting countries in total net exports of countries .
                 as established for the purposes of article 60
                                                              per cent a/
Bolivia                                                         0.063
Burma                                                           0.381
Cameroon                                                        0.494
Côte d' ivoire                                                  0.887
Ghana                                                           0.009
Guatemala                                                       0.273
Indonesia                                                      27.363
Liberia                                                         2.304
Malaysia                                                       44.361
Nigeria                                                         0.827
Papua New Guinea                                                0.107
Philippines                                                     0.241
Sri Lanka                                                       3.842
Thailand                                                       17.253
Viet Nam                                                        1.141
Zaire                                                           0.454
    Total                                                    100.000
    a/ Shares are percentages of total net exports of natural rubber in the
five-year period 1981 to 1985 .
 ---pagebreak---                                       Annex B
        Shares of individual importing countries and groups of countries
               in total net imports of countries , as established for
                            the purposes of article 60
                                                                 per cent a/
Argentina                                                           0.936
Australia                                                           1.146
Austria                                                             0.872
Brazil                                                              1.732
Bulgaria                                                            0.521
Canada                                                              3.344
China                                                               6.996
Costa Rica                                                          0.076
Czechoslovakia                                                      1.604
Egypt                                                               0.274
European Economic Community                                       25.771
     Belgium-Luxembourg                                             1.209
     Denmark                                                        0.123
     France                                                         5.257
     Germany , Federal Republic of                                  6.480
     Greece                                                         0.299
     Ireland                                                        0.168
     Italy                                                          4.130
     Netherlands                                                    0.442
     Portugal                                                       0.343
     Spain                                                          3.251
     United Kingdom of Great Britain and Northern Ireland           4.069
Finland                                                             0.267
India                                                               1.092
Iraq                                                                0.077
Jamaica                                                             0.023
Japan                                                             17.540
Madagascar                                                          0.000
Mal ta                                                              0.000
Mexico                                                              1.782
Morocco                                                             0.195
New Zealand                                                         0.222
Norway                                                              0.110
Panama                                                              0.030
Poland                                                              1.735
Romania                                                             1.472
Sweden                                                              0.422
Switzerland                                                         0.095
Union of Soviet Socialist Republics                                 6.821
United States of America                                           24.420
Venezuela                                                           0.425
     Total                                                       100.000
     a/ Shares are percentages of total net imports of natural rubber in the
three-year period 1983 , 1984 and 1985 .
 ---pagebreak---                                     Annex C
            Cost of the Buffer Stock as estimated by the President
           of the United Nations Conference on Natural Rubber , 1985
     Based on the actual cost of acquiring and operating the existing Buffer
Stock of roughly 360,000 tonnes from 1982 until March 1987 , the cost of
acquiring and operating a Buffer Stock of 550,000 tonnes might be calculated
by multiplying this figure by the lower trigger action price of 161
Malaysian/Singapore cents per kilogramme and adding a further 30 per cent
thereof .