Carriage of Goods by Sea

The U.S. Government, in December 1975, commented favorably on the Draft Convention on Carriage of Goods by Sea prepared by a Working Group on International Legislation on Shipping of the U.N. Commission on International Trade Law (UNCITRAL). The U.S. views, contained in a statement submitted to the SecretaryGeneral of the United Nations, stated that the draft represented a substantial improvement over the International Convention for the Unification of Certain Rules relating to Bills of Lading for the Carriage of Goods by Sea, done at Brussels August 25, 1924 (TS 931; 51 Stat. 233; 2 Bevans 430; entered into force for the United States December 29, 1937, subject to understandings). The draft convention is intended to replace the 1924 Convention and the Brussels Protocol of 1968. The Protocol has not been ratified by the United States and has not entered into force.

The new draft convention contains six parts: general provisions on definitions and scope; liability of the carrier; liability of the shipper; transport documents; claims and actions, including provisions for arbitration; and derogations from the convention.

In its comments the United States suggested, inter alia, that the convention include within its coverage a straight bill of lading, that is, a non-negotiable document which need not be surrendered against delivery of the goods. It also recommended that in circumstances where local law or regulations impose mandatory controls or checks before loading (e.g., the handing over to public weighers, or other types of physical testing), the carrier's liability should not operate while the goods are in charge of the intermediary. It objected to a provision which would permit a carrier to insert a wide exculpatory clause in a bill of lading in circumstances in which the shipper would not know in advance that the contracting carrier would use additional facilities to carry the goods to the port of entry named in the bill of lading.

The UNCITRAL Draft Convention on Carriage of Goods by Sea is contained in the Annex to U.N. Doc. A/CN.9/105. The U.S. comments were forwarded to U.S.U.N. as an enclosure to Dept. of State airgram A-7280, Dec. 4, 1975.

U.S.-U.S.S.R. Maritime Agreement

The United States and the Soviet Union signed a new maritime agreement on December 29, 1975 (TIAS 8195; 26 UST), effective from January 1, 1976, through December 31, 1981, regarding port access and cargo carriage by sea. It specifies 40 ports in each country open to access by all vessels of the other party, subject to four days' advance notice. It recognizes the mutual intention that

national flag vessels will each carry equal and substantial shares of the trade between the two nations, and notes the agreement of the parties to consult within 14 days of a request by either involving application, interpretation, implementation, or amendment of the agreement.

An annex provides general operating rules and bulk cargo rules, and recognizes the right of carriers under the respective flags to enter into commercial arrangements for the service and stabilization of trade between them which shall not unduly prejudice the rights of third-flag carriers to compete for the carriage of controlled cargo. In related notes, the two Governments agreed that the mutually acceptable rate as applied to shipments of agricultural commodities during 1976 would be the rate agreed upon on September 17, 1975 (see ante, Ch. 10, § 2, p. 540), and that subsequent rates would be negotiated. Each government furnished the other with a detailed memorandum on its port procedures and related matters.

Transport and Tourism

At the final session of the Conference on Security and Cooperation in Europe (CSCE), 35 states, including the United States, on August 1, 1975, signed the Final Act of the Conference, which contained, inter alia, principles on the development of transport and the promotion of tourism.

The statement of those principles follows:

The participating states,

Development of transport

Considering that the improvement of the conditions of transport constitutes one of the factors essential to the development of cooperation among them,

Considering that it is necessary to encourage the development of transport and the solution of existing problems by employing appropriate national and international means,

Taking into account the work being carried out on these subjects by existing international organizations, especially by the Inland Transport Committee of the United Nations Economic Commission for Europe,

note that the speed of technical progress in the various fields of transport makes desirable a development of cooperation and an increase in exchanges of information among them;

declare themselves in favor of a simplification and a harmonization of administrative formalities in the field of international transport, in particular at frontiers;

consider it desirable to promote, while allowing for their particular national circumstances in this sector, the harmonization of administrative and technical provisions concerning safety in road, rail, river, air and sea transport; express their intention to encourage the development of international inland transport of passengers and goods as well as the possibilities of adequate participation in such transport on the basis of reciprocal advantage; declare themselves in favor, with due respect for their rights and interna

tional commitments, of the elimination of disparities arising from the legal provisions applied to traffic on inland waterways which are subject to international conventions and, in particular, of the disparity in the application of those provisions; and to this end invite the member states of the Central Commission for the Navigation of the Rhine, of the Danube Commission and of other bodies to develop the work and studies now being carried out, in particular within the United Nations Economic Commission for Europe;

express their willingness, with a view to improving international rail transport and with due respect for their rights and international commitments, to work towards the elimination of difficulties arising from disparities in existing international legal provisions governing the reciprocal railway transport of passengers and goods between their territories;

express the desire for intensification of the work being carried out by existing international organizations in the field of transport, especially that of the Inland Transport Committee of the United Nations Economic Commission for Europe, and express their intention to contribute thereto by their efforts; consider that examination by the participating states of the possibility of their accession to the different conventions or to membership of international organizations specializing in transport matters, as well as their efforts to implement conventions when ratified, could contribute to the strengthening of their cooperation in this field.

The participating states,

Promotion of tourism

Aware of the contribution made by international tourism to the development of mutual understanding among peoples, to increased knowledge of other countries' achievements in various fields, as well as to economic, social and cultural progress,

Recognizing the interrelationship between the development of tourism and measures taken in other areas of economic activity,

express their intention to encourage increased tourism on both an individual and group basis in particular by:

-encouraging the improvement of the tourist infrastructure and cooperation in this field;

-encouraging the carrying out of joint tourist projects including technical cooperation, particularly where this is suggested by territorial proximity and the convergence of tourist interests;

-encouraging the exchange of information, including relevant laws and regulations, studies, data and documentation relating to tourism, and by improving statistics with a view to facilitating their comparability;

-dealing in a positive spirit with questions connected with the allocation of financial means for tourist travel abroad, having regard to their economic possibilities, as well as with those connected with the formalities required for such travel, taking into account other provisions on tourism adopted by the Conference;

-facilitating the activities of foreign travel agencies and passenger transport companies in the promotion of international tourism;

encouraging tourism outside the high season;

examining the possibilities of exchanging specialists and students in the field of tourism, with a view to improving their qualifications;

-promoting conferences and symposia on the planning and development of tourism;

consider it desirable to carry out in the appropriate international framework, and with the cooperation of the relevant national bodies, detailed studies on tourism, in particular:

--a comparative study on the status and activities of travel agencies as well as on ways and means of achieving better cooperation among them;

-a study of the problems raised by the seasonal concentration of vacations, with the ultimate objective of encouraging tourism outside peak periods;

-studies of the problems arising in areas where tourism has injured the environment;

consider also that interested parties might wish to study the following questions:

-uniformity of hotel classification; and

-tourist routes comprising two or more countries;

will endeavor, where possible, to ensure that the development of tourism does not injure the environment and the artistic, historic and cultural heritage in their respective countries;

will pursue their cooperation in the field of tourism bilaterally and multilaterally with a view to attaining the above objectives.

For the full text of the Final Act of the CSCE, see Dept. of State Bulletin, Vol. LXXIII, No. 1888, Sept. 1, 1975, pp. 323-350. For reference to other provisions of the Final Act, see index entries, this Digest, under Conference on Security and Cooperation in Europe (CSCE) (1975).

Secretary of State Kissinger included a number of proposals with respect to food production and food security in an address on September 1, 1975, to the Seventh Special Session of the U.N. General Assembly, delivered on his behalf by Ambassador Daniel P. Moynihan, U.S. Representative to the United Nations. Secretary Kissinger's address included the following proposals:

That a World Food Reserve system be created, as a matter of urgency, with the United States holding a major share.

That post-harvest food losses be cut in half by 1985 through a comprehensive program in developing countries.

That the capacity of the Consultative Group for International Agricultural Research and the International Agricultural Research Centers be expanded.

That a new international fund for agricultural development be established at an early date.

Statements of U.S. policy in the Secretary's address are summarized as follows:

The United States would increase university based technical assistance and research in agriculture of developing countries.

The United States would seek $200 million from Congress as a contribution to the International Fund for Agriculture Development provided that others add their support for a combined goal of at least $1 billion.

The United States was asking Congress for authorization to double its bilateral agricultural assistance this year to $582 million and urged other affluent nations to increase their contributions as well.

For the full text of Secretary Kissinger's address to the Seventh Special Session of the U.N. General Assembly, see Dept. of State Bulletin, Vol. LXXIII, No. 1891, Sept. 22, 1975, pp. 425-441; Report by Congressional Advisers to the Seventh Special Session of the U.N., Joint Committee print, 94th Cong., 1st Sess., Oct. 13, 1975, pp. 35-61.

U.S. Food Assistance

Section 201 of the International Development and Food Assistance Act of 1975 (P.L. 94-161; 89 Stat. 849), approved December 20, 1975, added the following statement of policy to Section 2 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1691):

In furnishing food aid under this Act, the President shall—

(1) give priority consideration, in helping to meet urgent food needs abroad, to making available the maximum feasible volume of food commodities (with appropriate regard to domestic price and supply situations) required by those countries most seriously affected by food shortages and by inability to meet immediate food requirements on a normal commercial basis;

(2) continue to urge all traditional and potential new donors of food, fertilizer, or the means of financing these commodities to increase their participation in efforts to address the emergency and longer term food needs of the developing world;

(3) relate United States assistance to efforts by aid-receiving countries to increase their own agricultural production, with emphasis on development of small, family farm agriculture, and improve their facilities for transportation, storage, and distribution of food commodities;

(4) give special consideration to the potential for expanding markets for America's agricultural abundance abroad in the allocation of commodities or concessional financing; and

(5) give appropriate recognition to and support of a strong and viable American farm economy in providing for the food security of consumers in the United States and throughout the world.

Section 202 of P.L. 94-161, supra, added a new Section 3 to the Agricultural Trade Development and Assistance Act reading as follows:

Pursuant to the World Food Conference recommendation that donor countries provide a total of at least ten million tons of food assistance to needy nations annually, the President is urged to maintain a significant United States contribution to this goal and to encourage other countries to maintain and increase their contributions as well.

Section 207 of P.L. 94-161, supra, added the following new Section 111 to the Agricultural Trade Development and Assistance Act:

Not more than 25 per centum of the food aid commodities provided under this title in each fiscal year shall be allocated and agreed to be delivered to countries other than those with an annual per capita gross national product of $300 or less and affected by inability to secure sufficient food for their immediate requirements through their own production or commercial purchase from abroad, unless the President certifies to the Congress that the use of such food assistance is required for humanitarian food purposes and neither House of Congress disapproves such