Boards of Governors of the Bank and the IFC at the Tokyo Meetings in September 1964.

TABLE 12.-International Finance Corporation commitments1 and disbursements, by area and country, through Dec. 31, 1964

Under the proposal, the Articles of Agreement of the Bank and the IFC would be amended to enable the Bank to make loans to the IFC without the government guarantee required by the Bank's Articles of Agreement, and to enable the IFC to borrow from the Bank within the limitations referred to above.

In its Report to the Congress, the National Advisory Council strongly endorsed the above proposal as well as the enactment of legislation which would permit the U.S. Governor to vote in favor of amending the Articles of the Bank and the IFC.

The U.S. Director of the International Finance Corporation, or his Alternate, acting on the advice of the Council, supported the decisions taken with respect to the foregoing matters.

THE INTERNATIONAL LABOR ORGANIZATION

Document II-53

Activities of the International Labor Organization During 1964: ANNUAL REPORT OF THE PRESIDENT (JOHNSON) TO THE CONGRESS ON U.S. PARTICIPATION IN THE U.N., TRANSMITTED MARCH 1, 1966 (EXCERPT) 47

INTERNATIONAL LABOR CONFERENCE

The 48th International Labor Conference, which is the standards setting body of the ILO, met June-July 1964.48 Member states are represented at the Conference by tripartite delegations: two government, one worker, and one employer delegates, each of whom have separate votes. The Conference dealt, inter alia, with the question of South Africa's policy of racial discrimination (apartheid) and international labor standards concerning employment policy, social security, and hygiene in commerce and offices. The Conference also concluded a 2-year debate on the Director General's report concerning possible adaptations of ILO programs and structure to the needs of a rapidly changing world. It adopted a resolution requesting the ILO Governing Body (the organization's board of directors) to review

40 NAC Report on Proposed Increase in International Bank for Reconstruction and Development Assistance to Private Enterprise through the International Finance Corporation and Associated Matters (H. Doc. No. 198, 89th Cong., 1st sess.). [Footnote in source text.]

47

"U.S. Participation in the UN: Report by the President to the Congress for the Year 1964 (Department of State publication 7943), pp. 189-194.

48

A more comprehensive account of U.S. participation in the 48th session of the International Labor Conference is contained in Report of the United States Government Delegates to a Meeting of the International Labor Organization: The Forty-eighth Session of the International Labor Conference, Geneva, Switzerland, June 17-July 9, 1964 (Washington, Department of Labor, 1964).

suggestions made during the debate, and, subsequently, to take action on those within its competence, and to forward its recommendations to future sessions of the Conference.19

The International Labor Conference also dealt with the ILO Budget for 1965. As compared with a net expenditure budget of $16,388,799 for calendar year 1964, the Conference approved a net expenditure budget of $18,684,347 for 1965. The United States contributes 25 percent of the ILO budget, which in 1965 will amount to $4,671,087.

ILO GOVERNING BODY

The ILO Governing Body met three times during 1964. As in the case of the International Labor Conference, the Governing Body considered the question of South Africa's apartheid policy and its membership in the ILO. It also approved a basic reorganization of the International Labor Office (the organization's secretariat) along the lines recommended by a U.S. management consultant firm following an extensive management study in 1963.50

Major features of the reorganization were the following: (1) The unwieldy divisional structure was streamlined and regrouped into nine major departments as the basic organizational units of the Office. This will provide for more flexible use of the staff, improve coordination and reduce overlapping and duplication of effort. (2) Machinery was to be installed to strengthen program planning and_control through a Program Committee reporting to the Director General, and to improve budgetary and evaluation procedures. The staff arm for this program planning and coordination activity is a new, small, Research and Planning Department which is responsible for the basic research necessary for the coordination of all ILO activities, the determination of priorities, and appraisal of ILO programs. (3) The administration of all ILO field activities will be centered in a new Department for Field Services. This will provide for better coordination of field activities and will remove from the technical departments timeconsuming responsibilities for administrative matters. Under this new organization it will be possible to delegate administrative responsibility to the field while maintaining policy direction and control at headquarters. (4) The Personnel Office is being strengthened and raised to departmental level under an Assistant Director General. Training programs for ILO staff are being strengthened. (5) Administrative procedures are being simplified and in many cases mechanized (6) To supervise this new organization, two of the present Assistant Director General positions were upgraded to Deputy Director General-each responsible for a segment of the Office's operations and the present Deputy Director General was designated Principal Deputy Director General with responsibility for generally assisting the Director General and deputizing in his absence.

"Text in International Labor Conference, Forty-eighth Session, Geneva, 1964: Record of Proceedings (Geneva, ILO, 1965), p. 817.

"See American Foreign Policy: Current Documents, 1963, p. 199.

The Governing Body also established: (1) the Inter-American Regional Advisory Committee and (2) the Working Party on the Program and Structure of the ILO. The latter was created to review all suggestions on revision and structure of the ILO and to submit recommendations to the Governing Body.

UNITED STATES REPRESENTATION

George L-P Weaver, Assistant Secretary for International Affairs, Department of Labor, continued to represent the United States on the Governing Body. Also, he was one of the two U.S. Government Delegates to the International Labor Conference in June 1964; George P. Delaney, Special Assistant to the Secretary and Coordinator of International Labor Affairs, Department of State, was the other U.S. Government Delegate. Richard Wagner, Chairman of the Executive Committee, U.S. Chamber of Commerce, was the Employer Delegate: and Rudolph Faupl, International Representative of the International Association of Machinists, was the Worker Delegate. Messrs. Faupl and Wagner also are members of the ILO Governing Body, having been elected by the worker and employer groups of the Conference, respectively. Congressmen Adam Clayton Powell, James Roosevelt, and Albert H. Quie served as Congressional Advisers to the Delegation.

SOUTH AFRICAN ISSUE

Following the demonstration against South Africa at the 1963 International Labor Conference,51 pressures for its ouster from the Organization continued to mount. Although South Africa announced its withdrawal from the ILO in March 1964, in view of the ILO Constitution which provides that a member's withdrawal shall not take effect until 2 years from the date the notification of such intent has been received by the ILO Director General, that withdrawal will not become effective before March 1966. In consequence, pressures to take action against its policy of apartheid and to amend the ILO Constitution so as to permit the expulsion of South Africa did not abate.

The Committee on Questions Concerning South Africa, established by the November 1963 session of the Governing Body, met in January 1964. It recommended a Declaration concerning apartheid which outlined in detail the provisions of South African law that provided for discrimination on grounds of race in employment and occupation, and which called upon the Government to repeal all such provisions. It brought the whole weight of the ILO's constitutional machinery into play to insure compliance with ILO standards against such practices insofar as possible, and called upon South Africa to establish a policy of equal opportunity and treatment for all in employment and occupation, irrespective of race. The Declaration invited the ILO Governing Body to request South Africa, in accordance with its

51 See ibid., pp. 199–200.

obligations under article 19 (5) (e) of the ILO Constitution,52 to report annually on the position of its law and practice in regard to ILO Conventions and Recommendations dealing with freedom of association, penal sanctions, the abolition of forced labor, and elimination of discrimination in employment and occupation.

This Declaration was adopted by acclamation at the 1964 International Labor Conference.53 In addition to the Declaration, the Conference adopted two amendments (though they cannot enter into force until the necessary ratifications have been received) to the ILO Constitution. The first amendment would empower the Conference to expel or suspend from membership any member which has been expelled or suspended from membership of the United Nations.54 The United States supported this amendment, taking the position that the United Nations as the principal political organization should set the framework within which organizations in the U.N. system act on essentially political issues. The amendment was adopted by a vote of 238 to 0, with 2 abstentions. It will go into effect if it is ratified or accepted by two-thirds of the ILO membership, including five of the ten states of chief industrial importance.

The second amendment to the Constitution would empower the Conference to suspend from participation in the Conference any member found by the United Nations to be flagrantly and persistently pursuing by its legislation a declared policy of racial discrimination such as apartheid.55 The U.S. Government opposed this amendment on the grounds that it was not consistent with the proposition that the United Nations should set the framework within which affiliated organizations act on political issues. Though this amendment was adopted by a vote of 179 (U.S. Worker) to 27 (U.S. Government) with 41 (U.S. Employer) abstentions, since government delegates of six of the ten states of chief industrial importance voted against the adoption of this amendment,56 it is unlikely that it will receive the necessary ratifications to go into effect.

OPERATIONAL PROGRAMS OF TECHNICAL ASSISTANCE

57

The United States has consistently supported the growth of ILO technical assistance activities. The activities financed from all sources-the U.N. Expanded Technical Assistance Program (EPTA— see page 118), the U.N. Special Fund (see page 118),57 the regular ILO budget, and funds in trust-increased from about $10.9 million in 1963 to about $12.2 million in 1964. The number of technical assistance expert missions increased from 724 in 1963 to 784 in 1964. About half (49.2 percent) of the technical assistance activity was devoted

Text in A Decade of American Foreign Policy: Basic Documents, 1941-49, pp. 224-238.

Text in International Labor Conference, Forty-eighth Session, Geneva, 1964: Record of Proceedings, pp. 825–827.

Ibid., pp. 838-840.

Ibid., pp. 834-836.

"United States, United Kingdom, Canada, Germany, France, and Italy voted against the amendment.

67 Of the source text.