conversion, an increase in UNIDO's autonomy within the UN system; (4) systematized consultations at global, regional, and sectoral levels to "redeploy" certain productive capacities now in developed countries and to create new industrial facilities in developing countries; and (5) establishment of an industrial development fund to increase the resources of UNIDO and enhance its autonomy and ability to meet the needs of the developing countries.

The Declaration and Plan of Action was adopted at the close of an all-night session by a rollcall vote of 82 to 1 (U.S.), with 7 abstentions (Belgium, Canada, Federal Republic of Germany, Israel, Italy, Japan, United Kingdom). Prior to that vote the United States and some other developed countries had called for separate votes on a total of 10 paragraphs or subparagraphs concerned with the questions of indexation, sovereignty over natural resources, colonialism, producers' associations, synthetics, and calls to implement pertinent provisions of the "New International Economic Order" and the "Charter of Economic Rights and Duties of States." An average of 16 states opposed or abstained on the various provisions on which separate votes were taken. In addition, the United States entered reservations on about a fourth of the other paragraphs and subparagraphs.

The failure to reach consensus at Lima had been expected. One reason for this was that the developing countries had been unwilling to negotiate and narrow differences in advance at the December and January meetings of the Permanent Committee called specifically to prepare for UNIDO II. The industrialized countries had submitted a draft in December, but the developing countries circulated their draft only unofficially and with the explicit stipulation that it not be subject to discussion. They subsequently met in Algiers in February 1975 to complete the text that in slightly modified form emerged from Lima.

Another reason for the failure to reach consensus was that the developing countries, instead of limiting their draft to issues directly related to industrial development, insisted on covering the whole gamut of international economic issues, often in the same terms that the developed countries had opposed during the sixth special and 29th regular sessions of the General Assembly in 1974.

In addition to the Declaration and Plan of Action, the Lima Conference also adopted without vote several resolutions concerning specific aspects of industrialization--such as the problems of the least developed, landlocked, and island developing countries; the selection of appropriate industrial technology; and the human aspects of industrial development--and referred other proposals to the IDB for further study.

Follow-Up Action

At its ninth session, held in Vienna from April 21 to May 2, the IDB considered and adopted by consensus an omnibus resolution on follow-up of the decisions and recommendations of the Lima Conference. The resolution (1) requested all governments to take necessary measures "to implement effectively their undertakings in terms of the Lima Declaration and Plan of Action"; (2) invited the bodies in the UN system of organizations to initiate necessary measures within their spheres of competence in order to implement the Declaration and Plan of Action; (3) requested the UNIDO Executive Director to undertake various actions to implement the Declaration and Plan of Action; (4) recommended that UNIDO's program budget and medium-term plan be modified to reflect the priorities established and additional tasks assigned by the Lima Conference; (5) requested the UN Secretary General and the UNIDO Executive Director to ascertain the views of governments on draft statutes converting UNIDO into a specialized agency so that the statutes, together with the views expressed at the 59th ECOSOC, might be submitted to the General Assembly at its seventh special session; (6) decided that the IDB would be responsible for the review and appraisal of the implementation of the Declaration and Plan of Action; (7) decided that the Permanent Committee should consider the terms of reference and rules for the functioning and administration of an industrial development fund; and (8) decided that the Permanent Committee should make a preliminary assessment of progress in implementing the Declaration and Plan of Action and report to the IDB in 1976.

The United States explained that it considered the resolution to be procedural and that paragraph (1) was without prejudice to the positions that the United States had taken in Lima on various parts of the Declaration and Plan of Action.

The IDB also adopted, by acclamation, a resolution introduced by Finland and sponsored by 15 states (including the United States) on the integration of women in development. The resolution recalled the provisions of the Lima Declaration and Plan of Action concerning the full integration of women in social and economic activities and, in particular, in the industrialization process, on the basis of equal rights; requested the Executive Director to keep the UNIDO programs and priorities under review in order to give necessary attention to the integration of women into the process of industrialization; and recommended that an equitable balance between men and women within the staff of UNIDO should be achieved by the end of the Second UN Development Decade.

The IDB departed from usual practice when, instead of "approving" the program budget and medium-term plan submitted by the UN Secretariat, it merely "noted" them and recommended that they be modified to reflect actions taken at the Lima Conference. The Secretary General, in cooperation with the UNIDO Executive Director, subsequently prepared revised estimates, but the Advisory Committee on Administrative and Budgetary Questions 5/ considered that the revised estimates provided insufficient information on the relationship between the resources requested and the programs stemming from the Lima Conference. The General Assembly accepted the views of the Advisory Committee and on December 17, by a recorded vote of 117 (U.S.) to 0, with 11 abstentions, adopted a resolution requesting the Secretary General to submit to the Assembly at its 31st session revised estimates, "taking fully into account all elements of the Lima Declaration and Plan of Action on Industrial Development and Cooperation and indicating clearly the resulting program requirements and the related

resources."

Specialized Agency Status and Redeployment
of Industry

The seventh special session of the General Assembly devoted one major section of the omnibus resolution it adopted on September 16 to industrialization. dorsed the Lima Conference's recommendation that UNIDO be converted into a specialized agency and established an intergovernmental committee of the whole to draw up during 1976 a constitution that would be submitted to a conference of plenipotentiaries to be convened by the Secretary General. The United States, both at Lima and subsequently, had expressed doubts about the wisdom of transforming UNIDO into a specialized agency. However, because it was willing to keep open the possibility of an expanded role for UNIDO in a more cooperative international development environment, it decided to participate in the work of the intergovernmental committee.

The resolution adopted by the seventh special session also repeated some of the provisions of the Lima Declaration and Plan of Action and, in one of its paragraphs, gave a general endorsement of it. Therefore, Ambassador Jacob M. Myerson, in announcing U.S. association with the consensus, also reaffirmed that the United States maintained its position on the Lima Declaration and stated the U.S. limits of participation in any UNIDO system of consultations to relocate industries in developing countries as follows:

5/ See footnote, p. 343.

we believe that redeployment of industries should be a matter of the evolution of economies rather than a question of international policy or negotiation. While government policy can facilitate such an evolutionary approach, we believe it must take into account the economic structures of the countries concerned as well as the economic, social, and security goals, including especially protection of workingmen's rights.

"The United States does not support those paragraphs dealing with the UNIDO system of consultations."

Reorganization of Secretariat

In October 1975 the Executive Director announced a new Secretariat structure designed to strengthen UNIDO's organizational structure, as called for by the Lima Conference. The reorganization was to be in full effect by January 1976. An important feature of the reorganization was the creation of an International Center for Industrial Studies as one of the major subdivisions of the Secretariat. Another feature was the consolidation into a single Industrial Operations Division, which will manage field operations, of the former Industrial Technology Division, Industrial Services and Institutions Division, and parts of the Technical Cooperation Division. Other parts of the former Technical Cooperation Division, plus conference services and external relations, were moved into a strengthened Office of the Executive Director. Finally, the Division of Policy Coordination, within the Office of the Executive Director, was enlarged by four new sections: (1) Program Development and Evaluation; (2) Least Developed Countries; (3) Negotiations; and (4) Nongovernmental Organizations and Business and Industrial Institutions Cooperation.

Industrial Development Fund

The question of an industrial development fund was discussed at considerable length by the Permanent Committee in December but no conclusions were reached. Meanwhile, the General Assembly on November 28 had adopted a resolution taking note of the initial action. taken by the IDB concerning establishment of such a fund and requesting the IDB to report on this matter to the Assembly at its 31st session.

UN CONFERENCE ON TRADE AND DEVELOPMENT

UNCTAD is an organ of the General Assembly concerned with the trade and related economic problems of the developing countries. Established in 1964,

conference sessions convene every 4 years. UNCTAD III met in Santiago, Chile in 1972. UNCTAD IV was scheduled for Nairobi, Kenya in May 1976. Membership is open to any country that is a member of the United Nations, the specialized agencies, or the IAEA. At the end of 1975 UNCTAD had 153 members--the 144 members of the United Nations plus 9 other states that were members of specialized agencies.

UNCTAD has permanent machinery that functions between conference sessions. The senior body is the 68member Trade and Development Board (TDB) which held its sixth special session in Geneva, March 10-21, 1975, to consider progress on the Second Development Decade, and its 15th regular session in Geneva, August 5-16, and September 30-October 2. Members of the TDB are elected at each conference session to serve until the next conference and are chosen on the basis of a specified number of seats for each of four groups, defined along generally geographic lines. Membership on the main committees is open to all UNCTAD members. The TDB has six main committees --Commodities, Manufactures, Invisibles and Financing Related to Trade, Shipping, Preferences, and Transfer of Technology--plus a number of other subsidiary bodies. The United States is a member of the TDB, of the six main committees, and, with a few exceptions, of the other subsidiary bodies.

Commodities

In the "program of action on the establishment of a new international economic order," adopted at its sixth special session in 1974, the General Assembly had called for an overall integrated program covering a comprehensive range of commodities of export interest to developing countries. The TDB had subsequently requested UNCTAD's Secretary General to prepare a detailed elaboration of such an integrated program for priority consideration by the Committee on Commodities. The seventh special session of the General Assembly, in September 1975, noted specifically that "an important aim" of UNCTÁD IV should be to reach decisions in the commodity field, "including decisions with respect to an integrated program and the applicability of elements thereof."

UNCTAD's 89-member Committee on Commodities considered proposals for the integrated program at meetings in February, July, and December 1975. The integrated program for commodities, as proposed by the UNCTAD secretariat, consisted of (1) a set of general objectives; (2) a list of commodities to which the objectives applied; and (3) a list of measures, or techniques, to be applied to the commodities to achieve the objectives. A key element of the integrated program would be the establishment of a common fund to finance the acquisition