The work of the Food and Agriculture Organization (FAO) has two broad purposes: (1) to serve as a clearing house for the assembly and exchange of information and to provide international and regional forums for discussion of common problems; and (2) to give technical advice and assistance to the developing countries in the fields of agriculture, fisheries, forestry, nutrition and home economics. On June 30, 1965, FAO was acting as executing agency for 210 U.N. Special Fund projects with a total Special Fund allocation of $181,352,300. At the same time FAO had 1,260 experts in the field under the Expanded Program of Technical Assistance.

13th FAO CONFERENCE

On the occasion of its 20th anniversary, President Johnson sent a congratulatory message to the 13th FAO Conference which met at Rome, November 8 to December 9, 1965:

The United States Government recognizes the great importance of the work of the Food and Agriculture Organization. We live in a world where many people suffer from hunger or malnutrition, or both, and where the situation threatens to worsen because of the rapidly rising population. In my recent message to the Secretary-General of the United Nations, on the occasion of the World Population Conference, 19 I said that the problem of bringing into balance the world's resources and the world's population is second only to the search for peace as humanity's greatest challenge.

At the session Mrs. Dorothy H. Jacobson, Assistant Secretary

of

18 U.S. Participation in the UN, 1965, pp. 221-228.

19 Letter of Aug. 30, 1965, from President Johnson to the U.N. Secretary-General, U Thant, on the Second U.N. World Population Conference in Belgrade, Aug. 30Sept. 10, 1965; text in Public Papers of the Presidents of the United States: Lyndon B. Johnson, 1965, vol. II, p. 951.

Agriculture, who headed the U.S. delegation, said:

It is fitting that we here pay tribute to the achievements of FAO during those 20 years. It is even more fitting that we take inspiration from the progress already made to chart higher goals for the years ahead. The goal toward which FAO must now chart its course is nothing less than the conquest of hunger in this generation.

Recognizing the present inadequate levels of nutrition in many countries, the rapid upswing in the world's population and the failure of agricultural production in many developing countries to keep pace with population, and the increasing demands which this situation will place upon FAO, the 13th session of the FAO Conference took two important actions.

First, it authorized FAO to formulate a plan for agricultural development in the world with particular emphasis on the problems of the developing countries. The first part of this plan will project to 1975 and 1985 supply-demand balances for agricultural commodities on a worldwide basis. The second part will construct a model for analyzing economic growth and agricultural development in the developing subregions. The plan will be a major activity of the Organization during the next 2 years. The United States is cooperating in this project.

As its second major action, the Conference, recognizing that the world situation has changed substantially since FAO was founded, approved a full review of the Organization's general structure during 1966-67. The review will examine carefully FAO's structure to determine if it can fulfill the Organization's future responsibilities. The United States took the lead in initiating the review.

During the year, FAO's regular program activities continued to progress.

AGRICULTURAL PRODUCTION One of the major objectives of FAO is to assist member countries to increase their food production. The Indicative World Plan approved by the 13th FAO Conference should put into proper perspective the problems confronted by the developing nations. The Secretariat divisions dealing with plants, animals,

soils, and water have already begun work on the basic input factors that will go into the study and have established working committees in order to obtain an integrated approach.

A substantial percentage of the 210 U.N. Special Fund projects and the activities of the 1,260 experts under the Expanded Program of Technical Assistance mentioned earlier relate to projects aimed at increasing agricultural production.

WORLD FOOD PROGRAM

The World Food Program (WFP) established in 1962 by the United Nations and the Food and Agriculture Organization as a 3-year experiment in multilateral food aid, has been strongly supported by the United States. During the 1963-65 experimental period, 70 nations pledged a total of $93.8 million ($68.9 million in commodities, $5 million in services and $19.9 million in cash) toward a target of $100 million. A total of 116 development and emergency feeding projects were approved during the period.

At the end of the 3-year trial period on December 31, 1965, the United States had authorized shipment of $33.3 million worth of the $40 million pledge of U.S. agricultural products for the program. The United States has contributed $5 million in cash for the administrative and operational costs of the program and has agreed to pay 50 percent of the ocean transportation charges on commodities furnished by the United States and shipped on U.S. vessels. At the close of 1965, final plans were being worked out to meet the full U.S. commitment for the program.

During calendar year 1965, about $19 million worth of U.S. vegetable oils, wheat, flour, feed grains, milk, and milk products were authorized for shipment under the WFP.

Examples of the wide-ranging projects carried out by the WFP in 1965 include: diet improvement in government hospitals in Jordan, food for agricultural training schools in Tunisia, animal feeds in connection with agrarian reform in Syria, permanent settlement of Mozambique refugees in Tanzania, rehabilitation programs in Nepal, develop

ment of poultry and swine industries in Ghana, national malaria eradication program in Turkey, expansion of the poultry industry in India, construction of community facilities in Peru, wheat price stabilization in Ethiopia, food for reforestation project in the Republic of China, training centers for skilled laborers in Chile, and multipurpose rural area development in Malawi.

20

After a review of WFP operations during the experimental period, the United Nations and FAO voted in 1965 to establish the WFP on a continuing basis and to adopt a goal of $275 million in resources for the years 1966-68. The United States pledge toward this goal includes (1) up to $92 million in agricultural commodities, subject to the condition that the U.S. contribution is matched on a 50/50 basis by other contributors; (2) sufficient shipping services (estimated at $32 million) to transport U.S. commodities; and (3) up to $6 million in cash for administrative and operational costs of the program subject to the condition that the U.S. share does not exceed 40 percent of the total cash contribution. The pledge was made subject to appropriate action by the Congress.

Document II-82

International Regulations

for Preventing

Collisions at Sea,

1960, With Annex,

Approved by the

International Conference on
Safety of Life at Sea,
Held at London,
May 17-June 17, 1960,
Entered Into Force,
September 1, 1965 22

Document II-83

Annual Report of the President (Johnson) to the Congress on U.S. Participation in the U.N., Transmitted March 9, 1967 (Excerpt)"

Activities of the Intergovernmental Maritime Consultative Organization During 1965

Among the most important actions of an organizational nature taken in 1965 by the Intergovernmental Maritime Consultative Organization (IMCO) was an increase in the size and a change in the composition of the Maritime Safety Committee to give it wider geographical distribution. In the negotiation of these changes, the United States was anxious to insure that those countries that traditionally had taken the most active interest in the promotion of safety of persons and property at sea continued to have adequate representation on the Committee. After lengthy debate in the Fourth Assembly of IMCO, which met at Paris, September 15-29, 1965,

22 TIAS 5813; 16 UST 794. As of Jan. 1, 1967, 49 states (including the U.S.) were parties to these regulations. The U.S. Acceptance was communicated to the Intergovernmental Maritime Consultative Organization in London, Mar. 12, 1964.

23 U.S. Participation in the UN, 1965, pp. 247-248.

it was decided to increase the size of the Committee from 14 to 16 members and to elect the Committee as follows: (a) 8 members will be elected from among the 10 largest shipowning member countries; (b) 4 members will be elected in accordance with geographical distribution; (c) the remaining 4 members will be elected from among states not selected under (a) or (b) above.*

One of the significant accomplishments of IMCO during 1965 was the adoption of an international Convention on the Facilitation of Maritime Travel and Transport.25 An international conference was convened in London and met for 3 weeks in March-April 1965. The U.S. delegation was headed by Robert V. McIntyre, U.S. Deputy Commissioner for Customs, who, together with other U.S. experts, had participated over a period of 2 years in the preparation of a draft convention. The Convention, as approved by the conference and submitted to member states for ratification, will, when implemented, have the effect of

24 "The action of the Assembly in approving the restructuring of the Maritime Safety Committee was not in accordance with U.S. wishes. . the changes effected by the Assembly represented the minimum departure from the original size and composition of the committee and also represented the minimum possible erosion of the U.S. position. the proposed amendment to the IMCO Convention as to the size and composition of the Maritime Safety Committee cannot be made effective prior to the next Assembly, to be held in the fall of 1967." (Report of the U.S. delegation to the Fourth Session of the Assembly of the Intergovernmental Maritime Consultative Organization, Paris, France, Sept. 15-28, 1965, submitted to the Secretary of State by the Chairman of the delegation, William K. Miller, Director of Maritime Affairs, Department of State, Oct. 30, 1965, p. 3.)

25 Reference to the Convention on Facilitation of International Maritime Traffic, signed at London, Apr. 9, 1965, by representatives of 35 nations (including the U.S.), subject to acceptance by deposit of instrument of acceptance with the Secretary-General of IMCO. As of Jan. 1, 1967, the Convention had not entered into force for the United States. (Text in annexes A and B to the Final Act of the International Conference on Facilitation of Maritime Travel and Transport, 1965; the Final Act is attached as annex II to the Official Report of the U.S. delegation to the International Conference on Facilitation of Maritime Travel and Transport, Held in London, England, Mar. 24-Apr. 9, 1965, submitted to the Secretary of State by the Chairman of the delegation, Robert V. McIntyre, Deputy Commissioner of Customs, Bureau of Customs, Department of the Treasury, Oct. 5, 1965.)

drastically reducing the volume of paperwork connected with the arrival, stay, and departure of vessels in the ports of the signatory countries. It is expected that the decisions taken by the conference as embodied in the Convention and its annexes will save ship owners many millions of dollars per year through the elimination of paper work and delay to merchant shipping.

During the course of the year the division of responsibility between IMCO and the United Nations Conference on Trade and Development, both of which operate in the field of shipping, was negotiated by the two organizations. There was broad agreement that for the foreseeable future IMCO should confine itself to the technical aspects of shipping while the Trade and Development Board, operating primarily through its Shipping Committee, should deal with the economic aspects of the shipping industry.

Within the field of maritime safety, the basic substantive responsibility of IMCO, considerable progress was made during 1965. For example, three international codes received approval: the International Code of Signals, the Code of Safe Practice for Bulk Cargoes, and the International Maritime Dangerous Goods Code. The Maritime Safety Committee, in addition to its work on the codes referred to above, considered a number of other aspects of safety measures. These included preparations for the international conference on Load Lines scheduled for March 1966, and consideration of numerous specific items, including subdivision and stability problems, protection of ships from fire, radio communication requirements, position reporting systems, and analysis of the causes of marine casualties. The work of IMCO within the field of maritime safety has now become so specialized that during the course of 1965 no less than 12 subcommittees, each directed toward a special aspect of maritime safety, met to consider appropriate measures within their fields of competence. Examples of these subcommittees are those on Subdivision and Stability, Tonnage Measurement, Carriage of Dangerous Goods by Sea, and Oil Pollution.

In the half year under review, new loan commitments amounted to $602.4 million. In further implementation of its recent policy of adjusting, its lending terms to the financial and debt service positions of the less developed member countries, the Bank, within limits consistent with sound practice, continued to approve individual loans with longer maturities and grace periods. Upward adjustments were also made in the interest rates on loans to countries able to obtain the major part of their financing in the private market. The Executive Directors completed work on the text of a Convention on the Settlement of Investment Disputes," and additional development aid in excess of $1 billion was pledged in support of India's third 5-year plan by the participants in the IBRD-sponsored consortium for that country.

MEMBERSHIP AND SUBSCRIPTIONS

Increases in the capital subscriptions of five member countries became effective in the period under review: Costa Rica (from $8 million to $10.7 million), Italy (from $360

28 H. Doc. 449, 89th Cong., May 31, 1966, pp. 10-16, 92.

27 Done at Washington, Mar. 18, 1965; signed by the United States, Aug. 27, 1965; entered into force for the United States, Oct. 14, 1966; TIAS 6090; 17 UST 1270.

million to $666 million), Malaysia (from $50 million to $133.3 million), Panama (from $0.4 million to $9 million), and the Sudan (from $20 million to $60 million). There was no change in membership. As of June 30, 1965, the total subscribed capital of the Bank was $21,669.4 million (see appendix table D-1). Of this amount, however, only the equivalent of $2,168 million has been paid in, with the remainder subject to call when required to meet the Bank's obligations created by borrowing or by the guarantee of loans.

INCREASE IN AUTHORIZED CAPITAL OF THE BANK

Because the authorized capital of the International Bank had been almost fully subscribed, the Executive Directors of the Bank in February 1965, submitted a report to the Board of Governors recommending an increase of $2 billion-from $22 billion to $24 billion-in the authorized capital of the Bank to provide for the admission of new members and for future increases in members' subscriptions. It was not contemplated that the United States would subscribe to any part of the increased capital, and the proposal involved no expenditure by the United States. Under the Bretton Woods Agreements Act," congressional authorization is required before the U.S. Governor of the Bank is permitted to vote for an increase in the Bank's authorized capital. The Council in its special report recommended favorable action on the proposed increase.30

28

29

COMMITMENTS AND DISBURSEMENTS

In the half year under review, the Bank made 22 loans in 16 member countries in the equivalent of $602.4 million (see table 6). Financing for the expansion of power and transportation facilities amounted to over

28 Text in A Decade of American Foreign Policy: Basic Documents, 1941-1949, pp. 305-311; see also, 22 U.S.C. §§ 286-286k-1.

Special Report to the President and to the Congress on Proposed Increase in International Bank for Reconstruction and Development Assistance to Private Enterprise through the International Finance Corporation and Associated Matters (H. Doc. 198, 89th Cong., June 3, 1965). [Footnote in source text.]

20 Congressional authority for the U.S. Governor of the Bank to vote in favor of the increase was given in Public Law 89-126, approved Aug. 14, 1965 (79 Stat. 519), and the increase to $24 billion became effective in Aug. 1965. [Footnote in source text.]

65 percent of the total. Among the larger loans approved during the period were $134 million in India for electric power and private industry, $100 million in Japan for transportation and electric power, $100 million for industrial development in southern Italy, and $79.5 million for the development of electric power in Brazil. In support of agricultural development, the Bank made a loan of $12.7 million in Uruguay, and loans totaling $26 million in Peru.

Private participation by U.S. and foreign financial institutions in early maturities of Bank loans occurred in 15 of the 22 loans approved during the period under review.

Through the end of June 1965, the Bank made 424 loans totaling the net equivalent of $8,771.8 million (see table 7) to finance approximately 1,000 projects in 77 countries or territories. As a result of exchange adjustments, repayments, and sales of loans, the portion of signed loans still retained by the Bank on June 30, 1965 was reduced to approximately $6 billion. Loan disbursements through June 1965 totaled $6.6 billion, or approximately 75 percent of net loan commitments. Disbursements in currencies other than U.S. dollars accounted for over onethird of the total.

TERMS OF LENDING

The Bank in the recent past has been giving increasing attention to its terms of lending in the context of the positions of both the less-developed and the more industrialized member countries in order to achieve a closer relationship between its terms and the particular circumstances of the recipient countries. With respect to the developing countries, the Bank adopted the policy of approving relatively longer maturities and longer grace periods where these were appropriate in view of the useful life of the project, the time required to bring it into productive use, and the debt situation of the borrowing country. For example, as against an average term of 22 years on its loans and typical grace periods of approximately 41⁄2 years, the Bank has in particular instances provided maturities up to 35 years and grace periods up to 10 years.