The Food and Agriculture Organization of the United Nations REPORT OF THE NEW ZEALAND DELEGATION ON THE THIRD SESSION HELD AT GENEVA 25 AUGUST-11 SEPTEMBER, 1947

Appendix to the Journals of the House of Representatives, 1948 Session I, A-02b

A—2b

1948 NEW ZEALAND

The Food and Agriculture Organization of the United Nations REPORT OF THE NEW ZEALAND DELEGATION ON THE THIRD SESSION HELD AT GENEVA 25 AUGUST-11 SEPTEMBER, 1947

Presented to both Houses of the General Assembly by Leave

By Authority: EL V. Paui, Government Printer, Wellington.—l94B.

CONTENTS Pa k Report of the New Zealand Delegation ... ... 3 Annexes — 1. Resolutions adopted by the Conference ... 11 2. Summary of Report by Director-General ... 28

THIRD SESSION OF THE FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS The third session of the FAO Conference was held at Geneva from 25 August to 11 September, 1947. The New Zealand delegation consisted of —Member: E. J. Fawcett, Director-General, Department of Agriculture. Alternates: N. S. McClumpha, New Zealand Marketing Department, London; and R. W. Marshall, New Zealand Trade Commissioner, Washington. Adviser : A. P. O'Shea, Federated Farmers, New Zealand. Secretary : J. V. White, Department of Agriculture. At the first plenary meeting the Nominations Committee was appointed, consisting of representatives from Brazil, Canada, Egypt, Iraq, Hungary, Ireland, Mexico, Netherlands, New Zealand, the Philippines, Switzerland, and Union of South Africa. The report of the Nominations Committee tabled at the second plenary session made recommendations in respect to the Chairman of the Conference, members of the General Committee and Credentials Committee. The Conference endorsed the recommendations of the Nominations Committee, which provided for the appointment of— Chairman of the Conference: Dr. F. T. Wahlen, Switzerland. Vice-Chairmen: Dr. P. W. Tsou, China; Dr. P. R. Viljoen, South Africa ; and Mahmoud Zaki Bey, Egypt. Members : Representatives of Canada, Chile, Czechoslovakia, France, Mexico, United Kingdom, and United States of America. The Credentials Committee was composed of representatives of Australia, Belgium, Colombia, Ecuador, India, Italy, and Norway. ATTENDANCE AT CONFERENCE The Conference was attended by representatives from 47 nations, as follows : Australia, Austria*, Belgium, Bolivia, Brazil, Burma*, Canada, Chile, China, Colombia, Cuba, Czechoslovakia, Denmark, Dominican Republic, Ecuador, Egypt, El Salvador, Finland*, France, Greece, Guatemala, Haiti, Honduras, Hungary, Iceland, India, Iraq, Ireland, Italy, Lebanon, Luxembourg, Mexico, Netherlands, New Zealand, Norway, Pakistan*, Peru, Philippine Republic, Poland, Portugal, Siam*, Switzerland, Union of South Africa, United Kingdom, United States of America, Uruguay, and Yugoslavia. In addition to the foregoing members, the following non-member countries sent observers : Argentina, Bulgaria, Iran, Roumania, Sweden, and Turkey.

♦Admitted during Conference.

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Observers were sent from the United Nations and the following six Specialized Agencies of the United Nations: International Labour Organization, International Bank for Reconstruction and Development, International Monetary Fund, UNESCO, International Children's Emergency Fund, and World Health Organization (Interim Commission). The following were also represented : Military Occupation Authorities, Holy See, International Emergency Food Council, International Wheat Council, International Sugar Council, International Cotton Advisory Committee, International Council for the Exploration of the Sea, Pan-American Union, International Wine Office, International Federation of Agricultural Producers, World Federation of Trade Unions, International Co-operative Alliance, International Chamber of Commerce, International Landworkers' Federation, Associated Country Women of the World, International Council of Women, International Union for Child Welfare, International Dairy Federation, International Commission of Agricultural Industries, International Bureau of Analytical Chemistry, International Federation of Technical Agriculturalists, and League of Red Cross Societies. The work of the Conference was undertaken in three Commissions, each of which set up small study groups for specific purposes as required. The agendas of the Commissions were as follows : Commission I: Commission on the World Food and Agriculture Situation (Chairman : Viscount Bruce). —General Situation. Trends in Production, Marketing, and Distribution. Agriculture, Fisheries, and Forestry Commodities important in International Trade. Commission II: Technical Activities of FAO (Chairman: Dr. P. J. du Toit). —Organization of Commission. Adoption of Agenda. Presentation of Second Annual Report of the Director-General to the FAO Conference. Work of the Technical Divisions: (a) Agriculture, (b) Nutrition, (c) Fisheries, (d) Forestry and Forest Products, and (e) Economics, Marketing, and Statistics. World Census in 1950 of Agriculture, Forestry, and Fisheries. Plans for a Rural Welfare Division. Adoption of Commission's Report. Commission III: Constitutional, Administrative, and Financial Questions (Chairman: Mr. S. Y. Krishanaswamy).—Organization of Commission. Adoption of Agenda. Diplomatic Privileges and Immunities. Relations with other Organizations: (a) United Nations, (b) Other Specialized Agencies, and (c) Non-governmental Organizations. Regional Offices. Finance: (a) Report of Committee on Financial Control, and (b) Draft Budget for 1948. Permanent Site of FAO. Chapter VII of the Report of the Preparatory Commission on World Food Proposals —Amendments to the Constitution and to the Rules of Procedure.

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WORLD FOOD SITUATION Deliberations of the Conference were to some extent overshadowed by the forecasted position with regard to supplies of food during the forthcoming winter, particularly in Europe, Asia, and parts of the Middle and Far East. The fact that countries in Europe which have been occupied or devastated during the war and have not been able to recuperate their food production, combined with drought conditions prevailing over practically the whole of Europe, creates a situation which must be viewed with alarm so far as prospects of the forthcoming winter are concerned. Similarly, in undeveloped countries climatic conditions have been worse and have materially affected the outlook for food-supplies. These facts led the Conference to the decision that everything possible must be done to ensure maximum collection and conservation of all types of foodstuffs, and, in particular, that breadgrains and milk products should not be fed to live-stock. The Conference reiterated the recommendations made by the International Wheat Conference which met in Paris in July last. INTERNATIONAL ALLOCATIONS The Conference was unanimously of opinion that international allocation of commodities in short supply must continue to operate whilst shortages persisted. It was agreed that the newly formed Council of FAO must exercise greater control in this respect than has been the case in the past, and agreed that the functions of IEFC be absorbed by FAO at an early date with a continuance of Commodity Committees functioning under the direct supervision of FAO. FERTILIZERS AND FARM MACHINERY An analysis of the position in Europe and in undeveloped countries shows that shortage of fertilizers, particularly of a nitrogenous nature, is seriously retarding recovery and development. Similarly, the inability to procure adequate farm machinery and spare parts for existing machinery is tending to require more, rather than less, labour in the production field. The Conference directed the Council to investigate the practicability of developing the production of fertilizers, and of some form of direction of machinery and spare parts, particularly to the devastated countries of Europe. REPORT OF PREPARATORY COMMISSION ON WORLD FOOD PROPOSALS The Conference devoted a good deal of time to the report of the Preparatory Commission on World Food Proposals and generally endorsed the conclusions and recommendations reached by the Commission. These proposals deal with food and agriculture production

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programmes of member Governments, the need for a World Food Council, and the important role which can be played by intergovernmental commodity agreements for individual commodities. It was generally accepted that such agreements represented the only practical way whereby producers could be assured of stability in their production programmes and consumers could be assured of a reasonable price level over a protracted period. It was, however, recognized that such agreements must embrace policies of expanding food production and provide, where necessary, for surplus stocks to be made available to people in need at prices adjusted to meet their ability to pay. The Conference adopted the attitude that FAO must take a lead in the study of commodities and, if necessary, arrange for conferences at Government level to finalize agreements, despite the fact that the draft Charter of ITO envisages such control under the organization yet to be established. The Conference recognized, however, the necessity for constant review and for collaboration between Governments and between Specialized Agencies as and when they are in a position to collaborate. As an example of action already taken by FAO, the Rice Study Group which met recently in India may be quoted, and it is recommended that a further meeting be convened in an attempt to formulate a suitable commodity agreement. PERIODIC REPORTS The Conference resolved that at each session an annual review of the food situation shall be carried out and that a study shall be made of the policies of member Governments which may be directed toward the achievement of the aims of FAO. It was considered that the periodic reports of members to the Organization should form the basis for such reviews, and Governments were urged to submit such reports in the form to be prescribed by the Council of FAO. TECHNICAL DIVISIONS The Conference expressed great satisfaction with the quantity and quality of the work performed by the Technical Divisions of FAO during the last twelve months. In their various spheres the Divisions supplied the Conference with detailed working documents on all phases of production, distribution, and consumption. It is apparent from the projects in hand or contemplated that the staffs of the Divisions will need to be strengthened as rapidly as the budgetary position will permit. The limitations of finance, however, have already affected the Divisions' activities, but every endeavour is being made to solicit the aid of the technical staffs of State Departments and of organizations wherever it is found practicable to utilize such assistance in the work of the Divisions.

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The Conference recognized it would be impossible for the headquarters' staff of FAO to undertake in the near future the complete range of activities envisaged in previous Conference determinations, and the 1947 session has recommended a comparatively narrow range of projects considered to be of outstanding importance in the attempt to increase the volume of foodstuffs of all descriptions. The Conference recognized the value of Standing Advisory Committees in guiding the activities of the Technical Divisions, and endeavours are being made to utilize ad hoc committees of specialists in all phases of the work of the Organization. The following Divisions are now staffed to a standard in line with the budgetary position : Agriculture, Nutrition, Fisheries, Forest Products, Marketing, and Statistics. A new Division is being established to undertake welfare studies, and it is expected this will be in operation at an early date. FINANCE The original Constitution provided that the Executive Committee act as a Committee on Financial Control. It was recognized at Copenhagen that the Executive, with its infrequent meetings, was unable to exercise the control necessary, and the Conference approved of the establishment of a sub-committee on finance consisting of representatives of the Executive Committee, together with financial experts nominated by Governments having suitable officers stationed in Washington. The present report of the Committee on Financial Control, together with the draft budget submitted to member countries, indicates the improvement which has taken place under that arrangement. Provisions have now been made by suitable changes in the financial regulations providing for a permanent establishment of a sub-committee on finance. As at 31 July, 1947, the funds available to the Organization, including the Working Capital Fund, amounted to $2,902,442, despite the fact that contributions from some member nations are in arrears. The Conference appealed to member Governments to correct this position at the earliest possible date. The draft budget for the third financial year (1948) amounts to $5,000,000. The estimated income from contributions amounts to $4,522,000, the remainder being made up from savings, which would normally go to swell the Working Capital Fund beyond the prescribed limit of $1,500,000. Considerable discussion took place on the dangers which might accrue from budgeting an annual expenditure beyond current income, and the Director-General and the Committee on Financial Control have been requested to watch the position closely, as it is recognized such a procedure cannot be followed for any length of time.

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The Conference approved of the scale of contributions to be paid by Austria, Finland, and Siam as 0-05 per cent., 0-10 per cent., and 0-30 per cent, respectively, whilst the contribution of India and Pakistan separately is to be determined by the two parties in consultation —the total being the amount normally prescribed for India prior to the partition. The contribution of Burma is being arranged between the Governments of the United Kingdom and Burma. Many members showed concern over the difficulty of paying contributions in United States dollars, as prescribed by the financial regulations. A study is to be made whether it is possible for countries to pay some proportion of their annual contributions in currencies other than dollars. SITE OF PERMANENT HEADQUARTERS OF FAO Article IX of the Constitution of FAO provides that the seat of the Organization shall be determined by the Conference ; such a determination was made at Quebec when the Conference enacted a Rule of Procedure providing that the seat of the Organization shall be situated at the same place as the headquarters of the United Nations Organization, with temporary headquarters situated at Washington. When this decision was made, the permanent seat of the United Nations headquarters had not been determined. This, however, was known when the agreement between.the United Nations and FAO was formally approved, and the latter contained a statement reiterating that the headquarters of FAO should be situated at the permanent headquarters of the United Nations. This statement was made, however, subject to the following provisos : that FAO could effectively and economically discharge its duties there; could maintain effectively liaison with other Specialized Agencies ; and that satisfactory accommodation and necessary facilities could be provided. The Conference had before it a report submitted by the DirectorGeneral dealing with the advantages and disadvantages of various sites, and in particular, New York, Washington, and Geneva. The United Kingdom Government favoured the latter site, and forced a decision in the plenary session to determine whether Rule XXXII of the Rules of Procedure (which governs the site position) should be revoked. It was thought, if this were done, the Council of FAO could start afresh in the study of the various sites which may be available. The motion was lost in plenary session, but reopened again by the delegate from Canada, who moved a resolution to the effect that, as circumstances had changed since the Conference decided in 1945 to place the headquarters of the Organization at the headquarters of the United Nations and the latter has since been established at New York, the Council give further consideration to the matter and bring forward

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recommendations to the next session of the Conference dealing with all possible sites so that it may then be determined whether Rule XXXII be revoked. REGIONAL OFFICES The desire for a rapid establishment of regional offices in Europe, the Near East, Asia, and Latin America was very apparent throughout the Conference. Many delegates expressed the opinion that the usefulness of FAO within these zones would be determined by the work of an efficient regional office, and urged that the Director-General take early action for their establishment. In view of the financial situation and of the difficulty of equipment and suitable staff, the Conference felt it would be inadvisable to give the Director-General specific instructions, and finally agreed that he be instructed to prepare, in consultation with member countries and other international bodies, plans for the approval of the Council in order that establishment may proceed at the earliest possible date. AMENDMENTS TO THE CONSTITUTION AND RULES OF PROCEDURE The Conference had before it four proposals for amending the FAO Constitution and Rules of Procedure. These were submitted by the Governments of United States.of America, the United Kingdom, and Australia, and by the Executive Committee. Following upon consultations between the representatives of the various Governments, it was agreed that the proposed amendments submitted by the United States of America should be the proposal before the Conference, and the proposals of the United Kingdom and Australia were withdrawn. The representative of the United Kingdom made a further proposal to the effect that, whilst the executive body be called the Council of FAO, provision should be made for the annual Conference to resolve itself into a committee to be known as the World Food Congress or Parliament. This suggestion was finally defeated, as it was considered no changes either in the Constitution or Rules of Procedure were required to enable the Conference so to resolve itself for the purpose of considering any particular question. In discussing the United States amendment, careful consideration was given to the recommendations of the Preparatory Commission and to the amendments proposed in the Commission's report. The United States amendment provided for the election by Conference of eighteen member nations to serve on the Council, such member nations to be entitled to appoint their own delegate, together with alternates and advisers. The resolution of the United States of America was finally

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adopted, the countries elected by Conference for the new Council being as follows, grouped according to term of office as determined by ballot: — One Year: Australia, Denmark, Egypt, France, India, and Mexico, Two Years: China, Cuba, Czechoslovakia, Netherlands, Philippine Republic, and United Kingdom. Three Years : Brazil, Canada, Chile, Italy, Union of South Africa, and United States of America. Amendments to the Rules of Procedure provide for an independent Chairman to be appointed by the Conference. It is also specified that in making their appointment to the Council, Governments should choose persons specially qualified by administrative experience or other special qualifications to contribute to the attainment of the purposes of the Organization. The United States amendment in its original form stipulated that the expenses of members of the Council should be met by the Government concerned. This, however, has been modified to the extent that the Organization is responsible for transport expenses of one representative of each member nation participating in the sessions of the Council, the per diem allowance and all costs of advisers being the responsibility of individual Governments. The functions of the Council have been expanded beyond those previously exercised by the Executive Committee, and prescribe that it keep under constant review matters which normally come under the annual review of the Organization —to examine current developments in proposed and existing inter-governmental commodity arrangements, particularly thoce affecting adequacy of food-supplies, utilization of food reserves and famine relief, changes of production or price policies, and special food programmes for under-nourished groups, and, in general, to promote consistency and integration of commodity policies both national and international, due regard being paid to the overall objectives of FAO. It is further provided that in performing such functions the Council shall have regard to the provisions in Chapter VI of the draft Charter of ITO and shall ensure close collaboration between the administrative authority of ITO and FAO. RELATIONS WITH OTHER ORGANIZATIONS The relations between the FAO and United Nations are governed by articles of the United Nations Charter and more directly by the agreement between the two Organizations, which the FAO Conference and the General Assembly of the United Nations approved in 1946. The Director-General in his report on this subject stresses the need for closest collaboration, and the Conference noted with pleasure that co-ordination and co-operation are developing satisfactorily.

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So far as relationship with Specialized Agencies is concerned, suitable progress has been made, and the Conference approved of the draft agreement with ILO which has already been approved by the governing body of that Organization. It is expected that this agreement will be implemented in the immediate future. DIPLOMATIC PRIVILEGES AND IMMUNITIES The Conference had before it for consideration the draft Convention of Diplomatic Privileges and Immunities prepared by the United Nations Secretariat to implement the resolution of the General Assembly of 13 February, 1946. The United Nations indicates that it proposes to convene in the near future a special conference to consider the conditions prescribed for Specialized Agencies. The Conference therefore requests the Director-General to accept any invitation which may be sent by the United Nations to attend such a conference, and to ensure that the particular requirements of FAO will be met, whatever form they may eventually take. The text of the resolutions adopted by the Conference and a summary of the report of the Director-General of FAO are annexed to this report.

ANNEX i RESOLUTIONS ADOPTED BY THE CONFERENCE AT ITS THIRD SESSION 1. GENERAL RECOMMENDATION The Conference of the Food and Agriculture Organization, being convinced of the gravity of the present world food crisis and of the dangers inherent in the longer-term outlook for food and agriculture, records its conviction that immediate and positive action is required in regard to both. The Conference believes it essential that governments acting severally and together take all possible steps To ensure that the minimum food requirements of all nations are met during the continuance of the existing acute scarcity; To ensure the necessary increase in agricultural production so that the present crisis may be overcome as rapidly as possible; To ensure the continued increase in food and agricultural production necessary both to meet the needs of the expanding world population and progressively to raise nutritional standards in all countries to levels adequate for health ;

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To ensure the required parallel developments in industrial production so as to bring about the rise in purchasing power of both agricultural and industrial workers upon which alone an expanding world economy can be based; and To ensure steady markets and stability of prices to agricultural producers so that they can plan with confidence for expansion. To aid governments in achieving these aims, the Conference is convinced That the machinery of the Food and Agriculture Organization must be strengthened so that the Organization may deal more effectively with world problems of food and agriculture ; That for a number of important agricultural products intergovernmental commodity agreements constitute an effective means of securing greater stability of prices and of increasing the multilateral character of international trade ; That international action parallel to that of FAO in promoting the expansion of agricultural production is essential in the realms of industry, mining, transport, and finance; and that co-operation between the United Nations and its economic agencies and co-ordination of their work is a matter of the most urgent importance. With these considerations in view, the Conference has Made recommendations to governments for action designed to ensure the optimum utilization of the existing and prospective supplies of food, and for immediate increases in food production through better use of the available supplies of fertilizers and agricultural machinery and augmenting the supplies of these essentials ; Recommended the taking over of the functions of the International Emergency Food Council by FAO, and the maintenance during the period of acute shortage of the representative commodity committees of the lEFC, which will continue to recommend the international allocation of scarce food; Approved and implemented the recommendation of the Preparatory Commission on World Food Proposals to hold an annual World Review of Food and Agriculture at each session of the Conference, at which national and international programs and policies will be discussed with a view to furthering consistency; and Established a Council of the Food and Agriculture Organization composed of the representatives of 18 member governments, which will act as the executive body of the Organization between the annual sessions of the Conference, keep the world food and agriculture situation and intergovernmental commodity arrangements under constant review and stimulate action by and co-operation among governments. Commending to the attention of the General Assembly of the United Nations the decisions taken at the present session, the Conference Recommends that with respect of those aspects of the food and agriculture problem which extend into other fields and require action by other organizations, governments working through the United Nations and its economic agencies bring about parallel development of industry and trade, and through the Economic and Social Council secure effective integration of all efforts directed toward expansion of the world economy.

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2. WORLD FOOD AND AGRICULTURE SITUATION (a) Shortage of Exchange The Conference — Recommends that the Council of FAO should be requested to examine the problem and to take appropriate action with competent intergovernmental organizations for its consideration. (b) Optimum Utilization of Food The Conference — Recommends that member nations should take immediate steps (1) To strengthen measures for the collection, distribution, and conservation of food supplies so as to ensure the maximum quantity being made available for direct human consumption ; (2) To reduce to the minimum in both exporting and importing countries the feeding to livestock of grains suitable for human use ; (3) To maintain high extraction rates in deficit countries and examine the possibility of raising extraction rates in surplus producing countries; (4) To ensure that the greatest possible proportion of the milk output is utilized for human consumption instead of animal feeding; (5) To increase as far as practicable the export of feedingstuffs to those importing countries which have a livestock population substantially below their prewar level. (c) International Allocations The Conference — Recommends — (1) That the emergency international allocation now being operated under lEFC should continue so long as the products concerned are in short supply ; (2) That, for the period during which allocation continues to be necessary, member nations should keep in force adequate legislation and administrative machinery for the control of exports and imports of the products concerned; (3) That the governments members of lEFC dissolve that body with a view to its incorporation into FAO by the end of 1947, under such conditions as may be agreed; (4) That the functions of the Council and of the Central Committee of lEFC be transferred to the Council of FAO; (5) That the Commodity Committees of lEFC be continued in existence with their present functions as international emergency committees ; (6) That when the transfer takes place, member governments who are members of lEFC continue their undertakings to one another in this regard and that other member governments consider joining in these undertakings.

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(i d) World Food Proposals The Conference— Recommends (1) That the proposals for the expansion of production as outlined in Chapters I to IV of the Preparatory Commission's Report be endorsed; (2) That at each annual session of the FAO Conference a progress and programme review be held to examine and consider the food and agricultural programmes and requirements of member governments; (3) That the principles of intergovernmental commodity policy referred to in the Economic and Social Council's resolution of 28 March, 1947, and those set out in the Preparatory Commission's Report serve as a general guide to member governments; (4) That FAO should play an active part in the study of agricultural commodity problems and, where the circumstances demand it, should take the initiative in promoting intergovernmental action in this field; (5) That for a certain number of important commodities, commodity agreements are the best means of assuring steady markets and price stability at a fair level, and thereby of encouraging primary producers to plan with confidence; (6) That in framing and concluding commodity agreements governments should bear in mind the interdependence of agricultural commodities in respect of production, consumption, trade, and prices; (7) That FAO continue its present satisfactory co-operation with commodity study groups and councils and with the Interim-Co-ordinating Committee on Intergovernmental Commodity Arrangements and ensure the closest co-operation between such study groups and commodity councils; (8) That so far as policy with regard to agricultural commodities is concerned, the Council of FAO when established should take as a guide the principles indicated at previous Conferences as set out in the Report of the Preparatory Commission and outlined in this Report. (e) Fertilizers The Conference — (1) Short-term Measures Urges member governments to give vigorous support to all measures to increase the immediate output of fertilizers. Efforts to secure fuller utilization are already under way by ECE and lEFC, but existing phosphate and nitrogenous fertilizer plants could produce more, if member governments ensure the highest priorities for coal, power, labour, and repairs. Requests fertilizer producing countries to review sympathetically their own requirements, and to seek means to release a larger part of their output for the use of countries with more acute fertilizer needs, with the aim of securing the maximum output of food from the available fertilizer supplies.

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Recommends that FAO give expert advice wherever necessary to promote intelligent utilization of fertilizers and the most efficient use of the limited supplies available and to prevent wastages resulting from inexpert or unbalanced application of fertilizer. (This might involve sending technicians, capable of determining manifest deficiencies by examining soils and crops, to those countries where studies on the utilization of fertilizers in relation to soil quality have not yet been undertaken, and aiding nations to take appropriate steps in order that general farming practices may take full advantage of available scientific knowledge on the subject.) Recommends that FAO should examine means by which it may assist member nations to make appropriate advance arrangements for transport of their allotted fertilizer requirements to ensure delivery in time to meet their needs. Urges member nations to examine their own systems for the transport and distribution of fertilizer to ensure that the supplies available are delivered to farmers early enough to be applied at the proper time, and, as far as possible, for the production of essential food crops. (2) Long-term Measures Notes that in certain countries production of nitrogenous fertilizers could be expanded by fully utilizing suitable war plants for the production of fertilizer, and that over a considerably longer period, new synthetic nitrogen and phosphate treating plants could be built in many countries and are particularly needed in underdeveloped countries. With a view to seeing that prompt and full exploration is made of all these possibilities for substantial increases in capacity and output. Recommends that FAO collect as rapidly as possible the most complete and precise information available concerning the different groups of fertilizers, especially as regards (a) The production capacity in each country (i) as the plants stand to-day, and (ii) with necessary repairs, and (b) The minimum annual requirements of individual countries over the period of the next five years on a sufficiently firm basis as to be of use to manufacturers in planning their production. Further recommends that the Council of FAO examine the problem of increasing fertilizer production, consult with the agencies already at work in this field or concerned with any aspect of this problem, and consider what further action is necessary to achieve prompt results. (/) Agricultural Machinery The Conference— Recommends (1) That governments of member nations should make a special effort to urge their machinery producers to expand the production of spare parts, and to direct a sufficient proportion of these spare parts to the countries where there is the greatest need for them to keep their present farm equipment in operation;

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(2) That FAO consult with governments of machinery exporting countries, with a view to encouraging as rapid an expansion as possible in agricultural machinery production, and ensuring that sufficient machinery including spare parts, tractors, and tractor equipment, is supplied to those regions where the lack or unsuitability of draft power is greatest; (3) That FAO complete as soon as possible the studies which have been already undertaken in order to determine requirements for agricultural machinery and production possibilities in the various countries; and that all member nations co-operate by supplying promptly the information needed for this purpose. The information collected on needs and the production possibilities in the various countries should be disseminated by FAO. (g) Periodic Reports The Conference — Recommends that, all future periodic reports designed to fulfil the requirements of paragraphs 1 to 3 of Article XI of the Constitution be termed " Progress and Programme Reports " to distinguish them from the other types of reports submitted under paragraphs 4 and 5 of this Article. Calls upon all member governments to submit a Progress and Programme Report in 1948. Further recommends (1) That future progress and programme reports in order to recognize the wide differences in the conditions and the amount of information available in the different countries be developed at two levels of intensity, namely, a " minimum " report, the submission of which would be obligatory upon all member nations, and a more " comprehensive " progress and programme report to be submitted by those governments that have the requisite data and personnel to permit the development of this more comprehensive report. Each government is to elect which type of report it will submit. (2) That subject to further definition, the " minimum" report envisaged be primarily a qualitative discussion in a limited number of chapters of the prevailing situation, the critical problems being faced, and the steps taken and success achieved in improving the status of food, nutrition, agriculture, forestry, and fisheries. This report should stress the major fields of FAO activity including the social and economic aspects of the problems. (3) That Part I of the more " comprehensive " report (subject to further definition) contain the same topics and same sequence of information required in the minimum report, and, in addition, that Part II show the production, consumption, import, and export targets for food and agricultural products for the year ahead including estimates of the specific production materials, prices, finances, and other conditions that will be required if such targets are to be attained.

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(4) That FAO be directed to formulate more detailed suggestions on the form, nature, and arrangement of each of these types of reports together with the necessary instructions for their preparation; and after clearing them with the Council transmit them to member governments at least five months in advance of the date when the reports are due. (5) That the member governments communicate in reasonable time with FAO and indicate which of the two types of reports they elect to make. (6) That FAO, after receiving notice of which report a government has selected, undertake to render whatever assistance it can in the form of expert advice and working schedules to ensure that all reports are of the quality desired and are sufficiently comparable to permit summarization. (7) That the copies of the progress and programme reports designed for the use of the central FAO staff be forwarded so as to reach headquarters at least six weeks prior to the meeting of the annual conference. (8) That each government transmit 200 additional copies of its report to FAO, either to the regional or Washington office as directed, and that FAO distribute three copies to all other member governments. (9) That all progress and programme reports be written in one of the official working languages of the Conference—either English or French. (10) That FAO prepare a summary of these reports and circulate this summary to member governments in advance of the annual conference. Along with these should go such analyses and interpretations as the Director-General may wish to bring to the attention of member governments and the Conference. These summaries together with supplementary reports on the world situation with respect to food and agriculture as developed from other sources, should be made the central basis of the " Annual Consultation of Governments " at the annual Conference. 3. TECHNICAL ACTIVITIES The Conference— Having reviewed the technical work of FAO on the basis of the Director-General's Annual Report and of supplementary documents and statements presented to Commission II in connection with the activities and programs of the five technical divisions, and having reviewed preparations for a World Census in 1950 and plans for a Rural Welfare Division; Expresses its satisfaction with the impressive amount of work already undertaken and planned;

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Considers that this review of technical activities of FAO provides a desirable opportunity to select among the working projects those which members consider to be of the greatest urgency, and to suggest an order of priority which should constitute a guide for the DirectorGeneral in organizing FAO's work during the coming year; And recommends that such review of technical activities become a regular feature of the annual Conference of FAO. Impressed with the budgetary limitations on the work of the technical divisions which will be increasingly felt as projects already initiated attain their full proportions, Requests the Director-General to spare no effort in achieving the highest degree of efficiency in the work of the technical divisions. Anxious to avoid a duplication of effort between the various international bodies concerned with related fields of activities, And convinced that the existence of a common interest should lead to more and better service through proper co-ordination of work, Urges the Director-General to continue taking whatever action is necessary to assure suitable collaboration between FAO and other agencies. Considering that the work performed by the technical divisions is basic to the existence of FAO since, even when circumstances beyond the Organization's control delay the achievement of its major objectives, these technical activities enable FAO to render valuable services and to become a highly important factor in influencing the work and policies of member governments, Believes that money spent on these technical activities of FAO is well invested and will give high returns, And recommends that the largest possible part of the total budget be allocated to technical activities. Considering that recent experience with regional activities such as those already initiated by the temporary European Office of FAO in Rome demonstrates the great usefulness of regional bodies of experts and regional technical conferences working in close liaison with regional offices as they are established, Recommends an intensification of these regional activities as one of the next major steps in the development of FAO's technical work. Considering that the guidance obtained from Standing Advisory Committees has proved invaluable in directing the work of each division into proper channels, and Considering further that this is equally true of technical ad hoc committees, subcommittees of specialists and working parties, especially in view of the limited staff and budget available to FAO, Calls upon governments to continue to allow their experts to assist FAO as members of these technical bodies. Considers that the programs of technical divisions, revised in the light of recommendations contained in the Report of Commission 11, inspire every hope that FAO will rapidly reach the stage where its services constitute an indispensable element in the food and agricultural policies of member nations.

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(a) Agriculture The Conference—(l) Irrigation Plans and Mechanization of Agriculture Recommends (a) That FAO give high priority to a thorough study of (i) the technical as well as the financial aspects of the irrigation needs of various countries, with due consideration to their connection with hydro-electric developments, and (ii) the mechanization of agriculture, and (b) That in these studies special attention be paid to the needs of the countries that are less developed industrially. (2) Plant Health Recommends that in the field of plant health FAO should propose the formulation of an international agreement aimed at the co-ordination of existing legislation relating to regulatory and quarantine measures, and Urges FAO to take steps to encourage the development of co-operation among governments in the fight against plant parasites. (3) Insecticides, Fungicides, and Weed Killers Recommends that methods of analysis of insecticides and fungicides be studied with the object of arriving at an international standardization of such methods, expressing values in uniform terms for all countries and, if possible, in such a way as to be of the greatest practical service to users of these products and to ensure truth in labelling. (This work might be carried out in co-operation with such agencies as the International Bureau of Analytical Chemistry and the International Commission of Agricultural Industries.) (b) Nutrition The Conference — (1) Energy-yielding Components of Food and Computation of Calorie Values Recommends (a) That the report Energy-yielding Components of Food and Computation of Calorie Values be referred to the Standing Advisory Committee on Nutrition ; (b) That member governments, through National FAO Committees and National Organizations and Committees, ask nutrition experts in their countries to examine these procedures without delay and consider the practicability of employing them in evaluating food consumption data for international purposes ; and (c) That FAO carry out further work in the field of food composition, along the lines indicated in the Report of the expert committee, particularly points (1), (2), and (3) of the Introduction to the Report. The technical aspects of the various problems, and the order of priority in which they may be studied, should be considered by the Standing Advisory Committee on Nutrition.

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(2) Latin-American Nutrition Conference Recommends that a Nutrition Conference be convened in Latin America in the course of 1948. The objectives of the conference should include the promotion of co-operation between FAO and nutrition workers in Latin America and the consideration of suitable programs for the study and attack of the serious problems of nutrition which exist in this part of the world. (3) Regional Nutrition Committees Recommends that FAO bring together in each region an appropriate body for the study of nutritional problems within the region. Any such body should work in close relation to the regional office of FAO and also with other regional bodies concerned with food and agriculture. The constitution and functions of the regional nutrition body should be decided after discussion with the member nations included in the various regions, due consideration being given to National FAO Committees which are already in existence. (c) Fisheries The Conference — (1) Regional Councils for the Study of the Sea Recommends that FAO should take action to initiate the formation of regional councils for the scientific exploration of the sea in parts of the world not now actively served by similar bodies, giving primary consideration to the following areas: Northwestern Atlantic, Southwestern Pacific and Indian Ocean, Mediterranean Sea and contiguous waters, Northeastern Pacific, Southeastern Pacific, Western South Atlantic, Eastern South Atlantic, and Indian Ocean. The boundaries of these areas, and the constitution of the councils, should be left open for discussion and determination by the nations concerned. (2) International Code of Quality Standards Recommends (a) That the Director-General ask member nations to examine what fisheries products entering into international trade are most in need of standardization, and how and to what extent such standardization may be accomplished; and (b) That FAO bring together the information yielded by such an examination without neglecting the nutrition factors involved, and refer it to ad hoc committees of government representatives so that the foundations may be laid for the eventual establishment of an international code defining standards of quality, packaging, weights, and descriptions. (d) Forestry and Forest Products The Conference — (1) Policy for Europe Recommends (a) That a liaison office be established at Geneva which will be able to give to the secretariat of the ECE the technical assistance recommended by the Marianske Lazne Conference; and

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(b) That the Director-General make suitable arrangements to ensure that the work of FAO in the field of European forestry and forest products is carried out in close co-operation with ECE and other United Nations bodies and specialized agencies. (2) European Medium- and Long-term Forestry Recommends that the European countries concerned should meet together from time to time within the framework of FAO to exchange information and views about their problems in the field of medium- and long-term forestry. (3) Reafforestation of Mediterranean Area and Near East Recommends that forestry experts under the auspices of FAO visit all countries in the Mediterranean area and the Near East (Middle East) which may express interest in a reafforestation program, commencing in Greece, and requests the Director-General to submit to the next session of FAO's annual Conference, together with the findings of these experts, recommendations for effective action in those regions. (4) Inventories and Statistics Recommends that all governments supply the statistical information concerning forestry and forest products which may be requested as speedily as possible in order to enable FAO to publish such statistics at the appointed date. (5) National Subcommittees Recalling that the Second Session of the Conference held in Copenhagen in 1946 recommended that all countries should establish special subcommittees on forestry and forest products as part of their FAO National Committees, and noting that certain countries had not yet constituted such subcommittees, Invites the countries concerned to establish subcommittees as soon as possible. {e) Economics, Marketing, and Statistics The Conference — (1) Program of Division s Work Recommends (a) That the Director-General circulate to all member governments at convenient intervals a list of important new tasks which the division has been asked to undertake and invite the opinion of governments regarding the relative importance of these various proposals, (b) That member governments when they receive such communications should reply to the Director-General as rapidly as possible, and (c) That the Director-General, when he receives these replies, should consider them in consultation, if time permits, with the most appropriate authority in the Organization and decide which of these new tasks, if any, the division is in a position to undertake within the limits of available funds.

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(2) Improvement of Statistics Recommends (a) That the Conference call on member governments to develop and improve their statistical services in respect of food and agriculture so as to meet the minimum needs as developed in the FAO program for statistical information. (b) That FAO proceed at once to develop and secure agreement on standard procedures in the statistics of food and agriculture, for example through such action as the preparation and distribution of outlines of methods for constructing food balance sheets, and for preparing indexes of production and prices. (c) That FAO take steps to assist governments to develop and improve their statistical services by co-operating with them in making available the assistance of staff members on request and by assisting governments to secure the services of qualified experts as needed. (.?) That FAO and member governments at the subsequent Conference report on steps taken and the progress achieved toward improvement of statistics on food and agriculture. (3) Current Reporting Recommends {a) That all printed and other publications issued by government services and official organizations in the field of food and agriculture be sent regularly to FAO; (b) That governments also send to FAO advance copies of publications related to food and agriculture as they become available for distribution. (c) That FAO develop and communicate to governments a timetable of the information needed at various periods during the year, and periodically send to governments detailed questionnaires calling for such information. (d) That the inquiries made by FAO be transmitted to governments as far in advance of the reporting date as feasible, and that insofar as possible they be distributed throughout the year with a view to facilitating the task of government services. (Ie) That FAO give careful study to ways of expediting the transmission of information from governments without asking governments to assume unreasonable expenditures. It would seem particularly desirable to examine the possibilities of setting up a code system (similar to that established by UN) for current and regularly forthcoming statistical information. (/) That FAO insofar as possible disseminate the information it receives and the results of its studies particularly concerning changes in production, trade, and prices.

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(4) Establishment of Production Targets Recommends (а) That the Conference urge all member governments to establish production targets or form estimates of production as rapidly as possible as a basis for planning the organization of production and as a guide to intelligent international consultation and action. (б) That the targets be in line with the nutritional requirements, the national and international market outlook, and the conservation and efficient use of land and other agricultural resources of each country, as envisaged in Resolution XV of the Hot Springs Conference. (c) That the targets include not only the objectives of production, acreage, and live-stock numbers, but also the desired improvement in preservation of the nutritive value of foods, and that they indicate the means required for reaching them. (d) That as rapidly as budget and personnel permit, FAO collaborate with member governments in the development of such targets and work out with them the most effective and consistent methods for formulating and reporting them. (/) World Census, 1950 The Conference—(l) Consultation of Specialists Recommends (a) That further consultation with technicians which is contemplated r should be taken at an early date, for it is of the utmost importance that the definitive program be in the hands of governments not later than the end of 1947 ; and (b) That FAO proceed at the earliest possible date to examine the proposed program with experts familiar with the problems of conducting censuses in underdeveloped areas. (2) Training Programmes for Census Statisticians Recommends (a) That insofar as possible training facilities in agricultural statistics be developed by FAO in the regions in which the technicians are to work and be based on the conditions actually prevailing and (b) That information concerning available facilities for such training be communicated to governments as soon as possible. (3) Participation in 1950 • World Census Recommends that FAO again call the 1950 World Census of Agriculture to the attention of member and nonmember governments which have not yet responded, urging them to take the necessary preliminary measures for their participation.

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(g) Rural Welfare The Conference—(l) Establishment of a Rural Welfare Division Approves the initial steps taken to carry out the recommendation of the Second Session of the Conference that a Rural Welfare Division should be established, and Considers the projects proposed to be of the type that should be undertaken. 4. CONSTITUTIONAL, ADMINISTRATIVE, AND FINANCIAL QUESTIONS (a) Diplomatic Privileges and Immunities The Conference — Recognizing that maximum uniformity is desirable in the privileges and immunities enjoyed by the United Nations and FAO, Requests the Director-General to accept any invitation which may be sent by the UN to attend a conference of specialized agencies and their member nations to consider privileges and immunities for such agencies, and to instruct his representative to seek to ensure that the particular requirements of FAO will be met, whatever form the eventual convention may take. (b) Relations with ICEF The Conference — Welcomes the creation of the International Children's Emergency Fund by the United Nations and urges all members of FAO to support its activities and co-operate in its work. Attaches particular importance to the development of effective schemes for securing rapid expansion of milk consumption by nursing and expectant mothers and young children, for supplementary feeding of children in schools and of adolescents, and regards these measures as the most practical means of improving the nutrition and safeguarding the health of the most vulnerable groups on which the future welfare of the community depends. (c) Relations with United Nations The Conference — Takes note of the report of the Director-General on the relationships between the United Nations and the Food and Agriculture Organization ; Approves the policy followed so far of developing suitable relations in the technical and administrative fields in a spirit of reciprocal co-operation; Resolves that in negotiating any supplementary agreement with the United Nations in respect of budgetary and financial questions (as provided in paragraph 2 of Article XIV of the Agreement approved in 1946 and consistent with Article 17, paragraph 3, of the United Nations Charter) the Director-General shall ensure, in consultation with the Committee on Financial Control, that an agreement satisfactory to all parties be drafted; and

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Requests the Director-General to submit the draft of any such supplementary agreement to a subsequent session of the Conference for consideration prior to ratification. (d) Relations with Specialized Agencies The Conference — Approves the Agreement between the International Labour Organization and the Food and Agriculture Organization of the United Nations relating to co-operation between the two agencies ; Requests the Director-General to notify the International Labour Organization of such approval and to file the Agreement with the United Nations as provided by Article 10, paragraph 2, of the Agreement. (e) Relations with International Nongovernmental Organizations The Conference — Having taken note of the application of the International Chamber of Commerce to be brought into consultative relationship with FAO, Decides that the privileges to be granted to that Organization shall be those of Category I, as defined in the resolution adopted on the matter by the Second Session of the Conference. (/) Regional Offices The Conference — Authorizes the Director-General to proceed with the work of establishing regional offices; Instructs him to prepare forthwith, in consultation with member countries and other international bodies, plans for the approval of the council whereby offices may be established in each principal region, and more especially in Latin America, Europe, the Middle East (Near East), and Asia; and in doing so, to take advantage of any regional machinery when planning and carrying out technical missions with a view to attaining the highest possible efficiency at a minimum cost. (g) Accounts of the Organization The Conference — Approves, in conformity with Financial Regulation XX, paragraph 4, the audited accounts of the first financial year ending 30 June, 1946, and the audited accounts for the period 1 July to 31 December, 1946. (h) Payment of Contributions The Conference — Notes with concern (1) that nine member nations have not yet paid, either in whole or in part, their contributions for the first financial year and (2) that at the end of July, 1947, a substantial part of the contributions for the second financial year still remain to be collected; Urges member nations that have not yet done so to take immediate steps to have their contributions paid at the earliest possible moment, and in any case not later than 31 December, 1947 ;

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Recalls that under Financial Regulation VIII, paragraph 2, contributions shall be payable in full within 30 days of the receipt of the communication of the Director-General or of the first day of the financial year, whichever is the later ; and Draws the attention of member nations who are in default in respect of the first financial year, to Article 111, paragraph 4, of the Constitution whereby a member nation in arrears in the payment of its financial contribution to the Organization shall have no vote in the Conference if the amount of its arrears equals or exceeds the amount of the contribution due from it for the preceding two full years. (i) Scale of Contributions The Conference—(l) Requests the Council to undertake a further study of the scale of contributions in the light of the scales at present in force in the United Nations and in the other specialized agencies, and of other relevant factors; furthermore, to include in its report a comparative statement of the contributions in all other United Nations organizations, with a recommendation upon a possible readjustment of the scale of contributions, taking into full account the observations made during the present Session. (2) Approves the recommendation of the Committee on Financial Control that the allocation of contributions for the following member nations be temporarily fixed as follows: Austria .. .. .. .. 0• 05 percent. Finland .. .. .. .. 0-10 percent. Siam .. .. .. .. 0-30 percent. and Resolves that such percentages shall apply only to the second and third financial years and shall be subject to revision when consideration is being given to the allocation of contributions for the fourth financial year; Approves the recommendation of the Committee on Financial Control that the liability of these three countries for the second financial year be limited to the amounts which would have been due for the normal calendar year of twelve months ending 31 December, 1947. (3) Approves the recommendation of the Committee on Financial Control that the allocation of contribution for Hungary be temporarily fixed at 0-15 per cent., that such allocation shall apply only to the third financial year, and that it be subject to revision when consideration is being given to the allocation of contributions for the fourth financial year. (4) Agrees that the contribution of Pakistan for the second and third financial years be determined by negotiations between India and Pakistan on the understanding that the aggregate amount of the two contributions will not be less than the present assessment of India, and that the arrangement made between the two governments will be reported promptly to the Director-General. (5) Agrees that the contribution of Burma for the second and third financial years be determined by negotiations between the United Kingdom and Burma on the understanding that the aggregate amount of the two contributions will not be less than the present assessment of the United Kingdom, and that the arrangement made between the two governments will be reported to the Director-General.

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(j) Currency of Contributions The Conference— Requests the Council to undertake a comprehensive study of the possibility of developing a general scheme which might enable those member nations which find difficulty in paying their contributions in the currency of the country in which the headquarters of the Organization is situated, in accordance with Financial Regulation VIII, paragraph 3, to pay a proportion of their contribution in some other currency or currencies to be determined, Requests the Director-General to institute enquiries forthwith whether a similar study is being undertaken by the United Nations, and if it is being undertaken urges that close co-operation should be secured with a view to co-ordinating such investigation and the solutions that might emerge therefrom, Reaffirms that if no general scheme can be proposed by the beginning of the third financial year, Regulation VIII, paragraph 3, shall continue to apply for the whole of that period : in any case no contributions already payable, including arrears, shall be affected by the subsequent introduction of any new general scheme. (k) Supplementary Budget Estimates The Conference — (1) Approves an increase of $25,000 in Budget Chapter I " Sessions of the Conference, Meetings of Committees, and Technical Conferences " in order that the Director-General may be in a position to make provision, within the aggregate sum thus provided, for conferences required during 1948, on the basis of such priorities as may be appropriate ; this increase in Chapter I to be offset by a corresponding reduction in the appropriation to be provided under Budget Chapter VIII, " Contingencies." (2) Authorizes that other proposals under this heading be met to the extent possible within the limits of the aggregate budget for 1948, taking into account the general financial situation of the Organization, priorities, and other needs to be met. (I) Staff Salaries The Conference— Requests the Council after further consideration of the revised scales of the Organization to submit a detailed report to the Conference at its Fourth Session. (m) Contingencies The Conference — Requests the Council to undertake a study of the regulations covering contingencies, examining inter alia the desirability of (1) Inscribing an item for unforeseen expenses in individual chapters, in addition to the chapter covering expenses of this nature, (2) Setting up financial regulations governing the operation of the contingencies chapter, (3) Authorizing the Director-General under certain conditions to increase during the course of a financial year the amount of the allocation provided for contingencies from the Working Capital Fund.

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(n) Adoption of the Budget The Conference— Adopts the Budget for the Third Financial Year approving : (1) An amount of $4,524,500 in respect of contributions to be collected from member governments and of miscellaneous receipts; (2) An amount of $475,500 as an appropriation from the Working Capital Fund; (3) An amount of $5,000,000 in respect of expenditure estimates. (o) Report of the Committee on Financial Control The Conference— Takes note of the report of the Committee on Financial Control. Records its appreciation of the excellent work which the Committee on Financial Control and the Subcommittee on Finance have been able to carry out in the course of the last year, and commends the valuable progress which has been made towards the development of sound budgetary, financial, and accounting procedures, and Urges the necessity of exercising strict economy in the handling of funds through a system of internal control. ( p) Permanent Site The Conference— Noting the changed circumstances since it decided in 1945 to place the headquarters of the Organization at the headquarters of the United Nations and that the latter has since been established at New York, Refers the question of the permanent site of FAO to the Council for further examination with reference to all possible sites and a recommendation including, if necessary, an amendment of Rule XXXII, to be made to the next session of the Conference.

ANNEX 2 SUMMARY OF THE REPORT OF THE DIRECTORGENERAL OF FAO TO THE CONFERENCE AT ITS THIRD SESSION MEMBER NATIONS Forty-seven nations were members of FAO at the close of the Copenhagen Conference. Costa Rica has since signed the Constitution, making the total 48. Applications for membership from Austria, Siam, and Finland will be considered by the Geneva Conference. The Executive Committee recommended that the period between the receipt of application for membership and the meeting of the Conference at which it is considered should this year be reduced from 90 to 30 days. (N.B. —At the 1947 Conference the following countries were admitted to membership of the FAO: Austria, Burma, Finland, Pakistan and Siam.)

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INTERNAL ORGANIZATION The following technical and service divisions have been established : Agriculture ; Economics, Marketing, and Statistics ; Fisheries ; Forestry and Forest Products ; Nutrition ; the nucleus of a division of Rural Welfare; Common Program, Technical, and Administrative Services; and Information. The total number of permanent staff in all divisions is now 381 (30 June, 1947). The term of office of the present Director-General expires at the end of this year. His successor should be appointed by the Conference. STANDING ADVISORY COMMITTEES Six Standing Advisory Committees were appointed in 1946 to advise the Director-General on the work of the technical divisions. These committees have had a total of 11 meetings during the year. It has been decided to continue the present membership of these committees until the end of 1947 when new nominations will be submitted for the approval of the Executive Committee by the Director-General. PERMANENT SITE In Washington, the temporary site of the Organization, the staff is spread over six buildings. This dispersal of staff involves additional expense and difficulty in maintaining the necessary close co-ordination of the various divisions. It is desirable that a decision on the permanent site of FAO should be reached at this Conference. In accordance with the instructions of the Copenhagen Conference, a statement on the relative advantages and disadvantages of the various possible sites has been prepared and circulated to governments. ADMINISTRATION AND FINANCE The Executive Committee met five times. Summary reports of the meetings have been circulated. Of the assessments of member governments, 97 per cent, have been received for the first and only 'completed financial year; for the second financial period of 18 months, which terminates 31 December, 1947, 61 per cent, of the contributions have already been received. The Reserve Working Capital Fund, which the Quebec Conference decided should be set up, amounted at the close of the first financial period to $1,500,000. The Subcommittee on Finance, set up by the Copenhagen Conference, has proved of great value to the Organization. It is recommended that the forthcoming Conference should make this committee a permanent part of the administrative structure of the Organization. EXTERNAL ORGANIZATION The action needed to achieve the aims of FAO must be taken in the countries themselves. Governments have therefore been requested to establish National FAO Committees to consider the necessary development of agriculture, forestry, and fisheries in relation to the national nutritional needs and to the whole economic set-up of the countries. These committees provide for a rapid exchange of information between governments and the Organization. To date 34 governments have set up these committees.

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The Quebec Conference recommended establishing regional offices. The Executive Committee approved of arrangements for the temporary appointment of a senior official in each region to be seconded by his government to FAO for a year to assist in developing the work of the Organization in that region. In Europe, an office has been set up in the buildings of the International Institute of Agriculture, which has now been incorporated in FAO. Mahmoud Tewfik Pasha Hefnawy, Dean of the College of Agriculture, Cairo, and formerly Minister of Agriculture for Egypt, has been seconded by the Egyptian Government as Temporary Regional Adviser for the Middle East. Mr. Chien Tien-Ho, lately Administrative Vice-Minister of Agriculture and Forestry for China, has been seconded for work in that country. The Government of India has been asked to second an official as Regional Adviser. Arrangements have been made for an informal meeting of the Latin American delegates during the Geneva Conference to consider the problem of regional offices in Latin America. The Conference will be asked to approve the setting up of regional offices for Europe, the Middle East, Asia, and Latin America. If the permanent site of the Organization is in one of these regions, a regional office will not of course be necessary. For economy and efficiency it is desirable that as soon as possible the regional offices of all the specialized agencies should be at the same centres. Every specialized agency will be consulted before deciding on the permanent sites of regional offices. CO-OPERATION WITH OTHER UNITED NATIONS ORGANIZATIONS In the work of the Organization contributing to "an expanding world economy," it is essential to have the closest co-operation with the Economic and Social Council, the International Bank for Reconstruction and Development, the International Monetary Fund, and the International Trade Organization when formed; and the work for " bettering the condition of rural people " is closely interlocked with the work of the International Labour Organization, the World Health Organization, and the United Nations Educational, Scientific and Cultural Organization. That co-operation is being developed as rapidly as possible. The agreement between the United Nations and FAO, approved by the Copenhagen Conference, has been approved also by the General Assembly of the United Nations. FAO is participating in the Co-ordinating Committee appointed by the Economic and Social Council. Informal discussions have taken place between the heads of the organizations with a view to getting joint action in the fields of activity which fall within the sphere of more than one organization. MISSIONS A full report of the Mission for Greece has been published. A mission is at present working in Poland and a group of technical experts in Venezuela. Negotiations are proceeding for missions to Hungary and Siam and further technical assistance to Venezuela.

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CONFERENCES A number of conferences of representatives of National FAO Committees of 16 European countries have been held in Europe to consider the needs of individual countries and Europe as a whole for food, including fish, and for agricultural implements and other equipment and materials needed to rehabilitate and develop food production in Europe. A conference on timber was held at Marianske Lazne, Czechoslovakia, to consider the needs of Europe and the extent to which these needs can be met from eastern, and northern European countries. On 9 July a conference of representatives of European countries and cereal-exporting countries was called at Paris to consider the import needs of Europe for 1947/48, and a means of utilizing the 1947 harvest to the best advantage. At the request of Asiatic governments a Rice Study Group composed of experts from the chief rice-producing countries, officials of FAO, and representatives of the United Nations and the International Emergency Food Council met in India. A report of the findings and recommendations of the group will be submitted to all member countries, and, if desired by governments, a world rice conference will be called to consider the report and if possible get agreement on an international rice policy. AD HOC TECHNICAL COMMITTEES Experts from different countries have been called together in ad hoc committees, special panels, and subcommittees set up by the Standing Advisory Committees to consider urgent specific problems and make recommendations for action. Such meetings have been held on veterinary and animal health problems, plant and animal breeding stocks, nutrition, salt fish, rural welfare, forestry and forest products statistics, forest products technology, and census and other statistical problems. A Committee on Calorie Conversion Factors and Food Composition Tables has reached agreement on factors which should be used by all countries. It is suggested that the Conference might approve the report of the committee and thereby give added authority to the use of these as the international factors and standards. REPORTS BY GOVERNMENTS According to Article XI of the Constitution, governments adhering to FAO agreed to submit periodic reports on the state of food, agriculture, forestry, and fisheries and on action being taken to achieve the aims of FAO. Nineteen reports have been received. The reports will be submitted to the Conference and a statement on the present state of food and agriculture based on these reports and on information from other sources will also be submitted. The Conference will decide what reports, statements, or analyses should be approved for publication. Consideration of the reports on the state of food, agriculture, forestry, and fisheries in the world, and the problems calling for international action, will become an increasingly important part of the annual FAO Conference.

ACTION TAKEN BY THE ORGANIZATION TO ACHIEVE THE AIMS OF FAO Postwar Food Crisis A conference called by FAO at Washington in May, 1946, resulted in the setting up of the International Emergency Food Council. This council, consisting of representatives of 34 nations, which meets at FAO headquarters and is staffed by FAO, allocates available exportable surpluses according to the needs of different countries. Under the present agreement it should terminate at the end of 1947. As acute shortages of certain essential foodstuffs will continue at least until the summer of 1948, international agreements on allocations of exportable surpluses should continue until the harvest of 1948. The council has recommended that it should continue to perform its present functions until that time, unless a permanent council of FAO, as envisaged in the Report of the Preparatory Commission on World Food Proposals, is set up by the FAO Conference and is given this duty. Long-term Problems A Commission appointed by the Copenhagen Conference to consider the proposals submitted in the document entitled " Proposals for a World Food Board " met at Washington from 28 October, 1946, to 24 January, 1947, under the Chairmanship of Viscount Bruce. The report of the Commission, which was unanimous, has been circulated to governments. It recommends the setting up of a permanent World Food Council, or Council of FAO. The United States of America has submitted an amendment to the Constitution to enable the proposed council to become part of the structure of FAO. This, with a statement by the Executive Committee, has been circulated. The United Kingdom and Australia have also submitted recommendations for a change in the Constitution with regard to the appointment of members of the Executive Committee. The Conference will consider and reach decisions on these recommendation s.

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