NAiloNs

N'rED D1str.
G3NffiA],
GENERAL t /6oz1laaa.t
4 Novenber 1965
A SSEM B LY
ORIGINAL: H{GIISE

Tlrentleth session
Aacn..lp i*cm 67

REPORT OF TEE II{ITT,D NATIONS CONFMU\CE ON TBAIE AND DEVELOPMENT

Amual report of the Trad e and Devel-opment Board

tf

65-2749\
t /6o21/aaa.t
Engl-lsb
Page 2

FART T[,iO

BEPORT OF TEE BOARD ON ITS SECON! SESSION

(netA at Geneva frotr 24 August to 15 Septenb er Lp65 incluslve, and. at

Unlted l\trat1on6 Head.querters fxon 25 to 2J and. 29 October 1965)

TABIE OF CONIE}IIS

Pera€{raphs

Chapter I. Imp]-enentatlon of the recomend.atlons of the flrst

UnLted Natlons ConfereEce on Trade and leveloDment . .
Chapter II. PrLnciples rB-24
Chapter III. Trade rel-a,tlons betveen countrles havlnq dlfferent
econonlc and soclaL systemc 25-36)
Chapter fV. Colmlttee on Conoodltles
A. Ttrst session of the Coml.ttee . . ?.'7 - )-19
l
3. Conslderatlon by the Board of the Colmlttee I s
! g}/vf u . t+, - ,6 -t
(:-) nevtew of comxodlty narkets +o-)u
(2) Progress toward s the drafting of a GenerE J.
Agreement on Connodlties
G) ?rograme of vork of the Conmittee on
,2-r\
(4) Subsldlary bodieg of the Comlttee on
55
(5) lcti.on by the 3oard. >o

Chapter V. Conmlttee on Manufa ctures

A. Meeting of the Speclal Conmlttee on Preferences . ,7
B. Flrst part of the flrBt Besslon of the Connd'ttee
on ltdanufa ctuie s )o-or
C. Consid.eratlon by the Board of the repolt of the
ConmLttee on lfanufa ctures 6n - l,r
(t) Actton relatlDg to the report of the
Special Comittee on lrefexences .... '. 6j-68
(2J Plogramte of vork 69-7t
(1) organlzational natters '72
(l+) actron by the Soara 73-74
Chapter VI. Urdted Natlons Confexence of Plenipotentiarles
Translt Trad.e of la,nd -Locked Countries
on
7q 0
U
 tl

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TABIE 0F COIrrTEI1IS (continued) i

I Paragraphs
Chapter VIL Rrles of procedure of the Board and its subsldiary
bodie6
A, Deslgnatlon of inter-governnental bodies for
the purpose of rule JB of the rules of procedure . . 76 - 78
3. Designatlcn of non-governnental organtzaticns
f^? +-hc nf nr'la 70 +La v,ll a< ^f
^f
procedure Yc-Rr
I C. Rules of procedure of Coff0lttees of the Soard Bz-9r
Chapter VIII. Locatlon of the secretariat of IINCTAD ot - I arA

Chapter J1(. Progranne of vork

A. Provlslonal agenda for the thl"d sesslon cf the
109
B, Calender of neetings for !)66 rlo - 1r5
Chapter X. PreparatLcns for the second sessicn of the Unlted
llatLons Conference on Trade and. DeveloDraent '|r 6 - r'ro
Chapter XL Organizatlonal natters
(1) Onerli np of the session . . , f20
(2) Membershlp and. attendance . . . LzL - )25
/r \) uredenraars
\) r27
\4/ Agenda 128
t)l U"ganization of the second eessicn of the
(6) Electlcno of members cf subsldiery bcdles
(u) Appolntnent of the nenber€ cf the
Adl/:igory Connlttee on Colmrodltlea . . . . ].10
(bJ Election to rnenbersbip of Conmittees . . .
'I Z1

(r) Adrrinlstratlve and. financlal lmptlcations . . 't4t

. - t4<
(B) Ad J ourmrent of the sesslon 'r aJr

(e) Ad.opti.on of the report

ANNDCES

A. Declslons and resolutions of the Soard at 1ts eeccnd sesslon:

l. Resolutions adopted. by the Soard
2. Rul-es of procedure of the Comrittees of the Board.
1. Arrangements for the particlpation of non-gove"nmental
orgenizatlons in the activitles of UNCTAD
4. Calend-ar of meetlngs
i
EI
Openlng address by the Secretary-General of UNCTAD at the tventy-
tt fifth plenary neeting of the Scard on 2\ Aueust f965
c. Te:rb6 of proposals Eubd:itted at the second session
D. Li6t of rlocr:nents l.ssued for and during the second sesslon
List of representatives and obseri'ers at the Beccnd sesslon
AIDAz)/t\to,.L
Eng]:lBh

CHAPTIR I. IMPLM',IENTATION OF TEE RXCOMMENDATIONS OF TEE FIRST

UNITE'D NATIONS COIVFffiENCE ON TBAIE AND DEVELOPME]\T

1. Durlng the dlscusslon under ltem J of the agend.a, 'rReview of the lnplenentatlon
of the recomnendatlons Of the Conferencett, nany delegations expressed- Oplnlons on
hov they lnterpreted thls part of the progranme of work of the 3oard, sevexs.l
del_egatlons l-nforned the Board of steps taken by thelr respectlve cou]ltrles to
inplement the recomend.atlons of the gonference as veLL as of recent develoBnents
1n the flelds of trade and developnent.='
2. Delegations fr'cm developlng countrlee consldered that the declslons reached. by
tLre flrst sesslon-of tbe Conference narked a posltlve 6tep tollard-s the solutlon of
the bs.slc ecoDor0lc probleEs of the contemlorary vorS-d. and, 1n par-blcu]-ar, the urgent
problems of the deveLoplng couatries. The socLal-lst countries of Eastern Europe
s.lso shared thls Ylew. So far, however, Ilttle hed been done to inplenent these
d.eclsl-ons. The progress 1n the i4:lemeDtatlon of the Tecoomendatlons of UNoTAD
had. been sloi{r v-ith the that no improvement had occur"ed in the econornlc
"esult
plight of the developi.ng countrles. On the contrary, the terns of trade vere
noving a,gain6t the developing cou::tries again after the sb.olt-llved improvement of
the l-ast tvo years. The exterua]. losltion of these countrles renalned as precs.rious
as ever. Regrets vere expregsed tba'b 6one cou::tries had 1n the past year even
resorted to further restricti-ve measures ln thelr forelgn tTad-e vhl ch had
ad"versely affected the exports of developlng cou:rtries.
3. lelegatlons from d.eveJ-oped aarket economy count"les referred to the rsork 1n
progress in other lnternatLonal instltutlons and actlon taken by lndlvldual
Governments to assist the trad.e and- d-evelopnent of d.eveLoplng countri.es. They
referred. 1n paltlcul€,r to the prospectg of beneflts ln the trade field for
developlng countrles whlch the contlnuing negotiatl-ons l.n the Ke ledy Roud
presented., to the p"og"ess otherwise nede in GATT as e coasequence of the
lntrod_uctlon of new provj-sions lnto the General- AgreeBent concerned v:ith the
interests of d.eveloping countrles, to the discuselons and negotlations, taklng place
or pJ:.med ln relEtion to partl cuJ-ar lmporbant connodltleE and, final-Iy, to the

L/ For d.etails, see the gurnnary record-s of the Bcardt s proceedlngs (m/y/sp"zl-lt+,
2v)-
t
 l

p,/6oT/ma.t
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contlnulng effort belng nade to lncrease the volume of fl]]anclal a,nd technJcal ald
o? to lniprove the fo1as in whl ch such aLd vae glven.
4' ft -.I"s, however, pornted. out by sone developlng countries that conslderatlon
of the problens faclng d.eve]-oplng count"tes cou.l-d. at best be onJy a by-protluct of
the €fforts belng nade by the readlng tradlng rations in the Kennedy Bound. Many
I aspect. lnvolved. Ln the trad.e of the developlng countrles elght not recelve
) adequate attentlon 1n these negotl-atLons. rt night therefore be approprr.ate to
consid.er lrhether other negottatlons shouJ.d be arranged..
i 5. The d.elegations f?om the soclalist countrLes of Eastern Eurole lnforued the
Board. of the erpanslon of the fo"elg. trad.e of th.ose countrigs 1n general and. of
thelr trcde v-ith the d.evel-oplng countrleg 1n partl cul-sr. they al_so stated. that
in thelr trad.e rels,tlons thelr countrles adhere stri ctly to the 'prLnciples
governing lntematlolaL trad.e relatl ons and trad.e poljlcles cond,uclve to d-evelopmentrt
adopted by the Conference.
6' rt
w,s agreed. that ltem J of the agenda vao of cruclal lmportance for the
future work of the ITNCTAD nachinery. A roay would have to be found al-ong whl ch the
deveLoped a'd the developlng countrles could co-operate in naklng uNCTAD and dts
bod.les an effectlve instrunent for lnpro'd.ng nnorld trade and, ln
'ubsldlary
partlcuJ,a,r, for promoting trade and. deveJ.opnent of developiDg countrles, rn thet
coDnexion, soue d.elegatLons stressed. that the results of the Boardrs efforts vould.
Jergely d.epend on the outcome of the detalled and speclflc work of its subsldialy
bod.les. There vas al-so general agreement that eone satlsfactoly procedure should
be d.evised for obtalning the naterlal on r,rhl ch a re.rdew and assessroent of the
fuiprenentatl on of the recomend.atlons of the conference nLgtrt be besed.. Eoweve",
views differed. on the content and. character of such a revlev. The d.iscusslon
enabled clari fL catl oo of the dlfferent polnts of rd.ew, and the d.eslrablllty of
reaching agreenent on proced.ures to be used. to revrew progress nade vas recognlzed
by the 3oard .
7. Delega,tlons fron d.evel-eping countrLes nainteined that the Board at r-ts flrst
sesslon decld.ed to rerd.e!, at tts second and thi"d. gesslons the inpl_ementatl orl of
tb.e recoum.end.atlons of the Conference and that it even identlfied. the
con0aendations to whlch parbicuLar attentlon shouLd bepaLd. Eovever, because the
"e
lEforuatlon supplied d.uring the second. sesslon !ra6 not sufficiently d.etaLled, they
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fage D

considered_ irhat it woulil be dlffi cult for the Boal.d. to form any l.lorthvhile
Judgeneni: on the vork so far done or to deternine the directj-on of 1ts efforts 1n
the Dear futuae.
8. During the d-ebate under iten J of the agenda whl ch 1ed to the adoptton of the
resolution lndlcated ln paragvaph 14 bel-ow, the vlew of d"elegations from developed
countries v-ith narket econonles l,tas that it woul-d be entlrely aplroprlate for a
general debate to be held oo the progxess rnade ln achierdng the obiectives of
UNCTAD in the trade and developmeDt fleld, but not a case-by-case exaulnatlon

centred on pollcy meesures applled by lnd i lrid-ual- countrles and focused on

individual recommendatlons 1n the tr'inal- Act, vhethel' agreed or dlsagreed. In the
oBinlon of these d.elegations, the reconmendatlons of the Conference '{ere understood
to be guldelines for genera]. policy, and. coufd Dot constitute a basis for requests
for foruallzed procedures of evaluetlon.
9, The delegatlonB from the soclalist cor:.ntrles of Sastem Erole again enphaslzed.
that the PrlnciBles edopted by the Untted Nations ConfereDce on Tra'de and
DeveLopnent should be the basls of trad-e and. economic relations among aJ1 countTies '
10. The delegetlons fron d.eveloplng countries consld.ered. that acceptance of a
reconrnendatlon ipso facto inplied the acceptence of a corresponding coruLltment to
lnplement the reler,rant neasures. EeEce, the Soard- and l-ts subsld-lery bodles had
the dght to reguest detailed progress repor-bs Ln a sultabl-e form from Governments
on the implementatlon of the re co@endatl ons that affect then. In the opinlon of
these delegations, the subsldlary bodles of the 3oard-, belng an lntegral parb of
the lnstltutloEal Eachlnery whl ch had been establlshed by unanimous consent, had
as ouch constltutional rlght and. duty as that of the Board to revlev progress nade
tn the lnryle!4entation of those recoqmendations which feIL speclfically ldthin thelr
tern6 of reference ' Delegatlons from the d.evelopLng countries al-so polnted out
-of
that the implementatlon of tbe recolsrendatlons vas, in es6e]1ce, a questl-on
poLltlcal read_1ne6s to rlse to the chall-enge posed. by the econonic develolnent of
the developing countrles.
11, some d.elegatlons from deveJ-oped rnarket econor{r count]'les informed- the Boald
that they vould not hesltate to assume their responslbilitles aE part of the
concerted efforts of the members of the Board and that they would. continue to seek
to fornulate their pol-Lc1es with the need.s of the d.eveloplng countrles in sind.
 A/6023 .l
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They stated that they intend.ed. to participate conscientiousry in the work of the
Board. and its subsidiary bodies with the al-m of seeking general- agleement and
fi.tlding a basis for further p"og?ess. However, the whole question of the
inplenentatioD of UNCTAD reccDnendations called for clarification. fn the view of
these delegatlons, UNCTAD r,raE concerned with 'ohe fornul-ation of objectives and with
proBosals for attaiJ]ing these objectives. rt was pointed out that there were

I various ways in which the UNCTAD objeetives couLd. be pwsued.. These included the
actions rqhich Governments cen and. do take autonom.ously within the field of interest
of ITNCTAD" rt was also possible in certain areas for uNcrAD to initiate processes
which eould resurt in international agreement on specific natters as envisaaed in
cene:tal Assembly resol-ution Lggj (J(IX).
L2. The delegations f:ron the socialist coultrles of Eastern Eu!:ope considered it
desirable, a year after the first conference, to revieir the progress mad.e and to
consid.er what new neasures were requi-red. to ensure that alr countries enjoyed the
benefits of international trade, rn their vien, uNcrAD trust gua"d againsr
degenerating into a sterile debating society. The same delegations considered that
the nain task of the institulrlonal m.achinery establ_ished was to find the nost
suitabre soLutions for trade and d.evelopnent problems, particurarly those of the
devetoping countries. The reconmendations ad.opted by the first session of the
Conference were an lntegral part of the over-aLl efforts to normalize inte"national
trade. In that co!:.nexion, the same delegations pointed out that, ir the last
analysis, the implementation of reconmendat ions ad,dressed to the sociallst cormtries
of Eastern Europe depehd.ed. on an i-ncrease in their exports to both the deveLoping
countries and to the developed. market economy countries.
L1' The 3oa"d atte!.pted to reconcire these differing wiews. rhere was generaf
agreement that whlIe the recommend.ations of the conference did not carry the foace
and coEpul-slon of law, they were nevertheless meant to lead to action beneficial
to world trade and, l.n particular, to the trade and. devel_opnent of devel-oplng
countries. It was recognlzed that it rras the duty of the Soard to review and assess
periodically the progress of impl-enentation of the recomnendations and. i.t was
agreed that mer0bers of the Cobference nould. be requested to make available, to this
end, to the secretary-Generar- all relevant informatlon in a foru, they win find
aBpropriate for the purpose. In this coruiexion, it was enphasized that the
^/6cq/Add.L
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fage o

inpleroentation of the recoruoendations was not nerely a question of a proceduJal or

legal controversy, but primarily a question of purposive co-operation between the
members of the Conference.
l-4. at its fiftieth plenary meeting on t\ft, Septenber adopted, by
The Board
consensus, a draft resolution submitted by the Acting President, the operative part
of which read as foltows:3
tr@,

t'1. Requeststhe Secretary-General of the Conference to prepare annual-ly

a report oi-frIEiibtional- trade and econoroic deveJ-opnent with particular
xeference to the rates of grolrth and progress made in economic developnent of
d.eveloping countries and theLr trad.e and deyel-oBnent needs in older to enable
the Soard to ful-fil its task of keeping r:nd er review and taking appropriate
action within its ccmpetence for the implenentatlon of the reeommend.ations and
othe" p"ovislons in the tr'inal- Act of the Conference and to ensure the
conti-nuity of its work;

"2. Requests States nerobers of the Conference totheprovide infornation,

Conference in
I
of a kind thlch wil]. assist the Secretary-Genexal- of
prepari.ng such a report and ln a forn which they wll]. find appropriate of
action taken relevant to the functione of the Soard and on the basis of the
tr'inal- Act of the Conferencel

"1. Invites the regional economic cornmisslons and the speclalized

agencles oTE?-TniteO Natlons, j-nter-governroental- bodies d.eal j31g w1th matters
of txade and develapnent and other appropriate irbernational organizations to
co-operate with the Secretary-General- of the Conferebce by providing
inforoatLon relevant to the preparation of the above-mentioned- report of the
Secretary-General of the Conference;
ul+. Requests the Secretary-Genera I of the Conference to t"ansmit copies
of his annua J--ieport to States members of the Conference wel]. in tlme before
the second of the tl[o annual- sesslons of the Board;
"5. p.qc.!gg:, to consj.der regularly at its second sessLon in the year the
report of the Secretary-General of the Conference as a background document
for the revlew and assessment of i-npleoentatj-on of the recommendations of the
Conference;

"6. Requests the Secretary-General of the Conference to supply Corunl"ctees I

with such liffiTion and. analysis as the Board nay deer4 necessary for then to
assist it in lts task of revlewj,ng and assessing LnpJ-ementation of the
reconmendations of the Conference in accordance with thelr terms of reference;
o
Vf to" fuLL te"t, see annex A.t to the present report (resolution r9 (rr)).
 A/6a1lAdd..L
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Page P

t'7. Requeststhe Secretary-General of the Conference to prepare a report

for each neeting of the Soard as to the progress mad.e and concre-Le neasu"es
taken in respect of co-ordinating the activities of UNCTAI trith those of
other bodies in tlee fleld of trade and d.evelopment as provided fo" !n
General Assembly resolution ]-995 (XB').t'

Lr. In adoptlng this resolutLon the Board decided to reconnend. to the coanj.ttees
o[ connoditieE and on Manufactu"es to deal, iI 'ohe light of this resolutionr'with
those paragraphs of thelr respective work programme s whlch I'Iere left in squale
I' bracket6..'
I
f6. It was pointed out by some delegatlons tha'c the resolution was anrbl.guous i-n a
nusber of respects, part!.cu1-ar1y ltlth regard to the lnpLementation of
reconnend.ations. In particul-ar, 'bhe resolution dld not specify the use that the
3oard. wou1d. nake of the Secretary-General! s report, nor did lt provide for the
organLzation of concerted actl.on by all- nex0bers, whl-ch was the only roethod by
which lli\cTAD coul-d. achieve effective results. It nas al-so recogni.zed by many
del-egqtions that the procedufes envisaged in paragraph 6 of the resolutipn
mentloned Ln paragraph abwe l^rould unde"go further clarification at the
fosthcoming meetings of the Board and the connittees r,tith a view to enabllng the
Cotrnittees to play tbeir due role effectively aEd expedltiously.
1?. Tlhe delegatLons of Belgiun, SriltzerLand, MexLco, India, Canada, Chile and the
Nethe"Lands nade statenents on thei" position vith respect to the above resol-ution.
These are to be found in thb suDnary record.s of the 3oardts second. sesSion (see
m/B/sR.50).

2f se" chapters IV and v of the present report.

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C]IAPER fI. PBINCIPIES

18. During the dlscussLon under ltem B of the agende,, "Steps to be taken to
achleve agreexaent on prlnclples govemlng lnteraptional.. trade relatipng and trade
po11cle6 conduclve to developnent (see annexes A.I.1, A.I.2; and A.T.J of the
rdnal Act oi UNCTAD, 196l+)1" the secretary-GeneraL of the conference subnltted to
the Board a note (mfnfZO) glving, on the basls of the proceedlngs of the first
session of the Conference, a brlef account of tire leglslatlve h1story of the
General- and speclal PrlncipJ.es, and of the "ogtstanding Dlfferences on General and
Spgcial Priaclples adopted by the Conference|.
L9. fn the course of the dlscusslon under thls ltem, nost delegatlons stressea the
l\rndanental- lmporLance of the Generat and special prlnclpleB adopted by the first
sesslon of the conference, as veLL a6 the necessLty for achl-eving the broadest
possible measu?e of agreement at. the earlLest possible moment on princlples
governlng lnternatlonal trade and trade polisies conduclve to development. rn the
course of the dLscusslon under this ltem as rreLl as under item 1, 'rAdoptlon of the
agenda", a number of del-egatlons emphasized that the task before the Boa"d vas to
Eeeli the broadest posslble meaflire of agreement on the lnplenentatlon of the set
of Prlnclples al-ready adopted by the firEt sessLon of the conference and that they
could not accept a Bitr,ratlon tn vhich these princlples voul-d becone the zubject of
a nev dLsc.lrsslon leadLng to thelr revlEion or to theLr replacement by a nev set of
prlnciples. A nurrber of other delegatLons consLdered that the task lihlch now
faced the Board was to proceed ln accord.ance wLth recomrendatlon A.r.J so as to
achieve the broadest possible neasure of agreement et the earllest posslble moment
on a set of prlnclpl-es. Some delegatlons suggeoted that an advlsory body of
experts night be estalrllshed to ldentify the area of dlsagreement on the Prlnelples
and suggest possible vays of reaching unanlnlLty thereon, other del-egations said
that) in thetr opinion, arr ef-=orts should be nobllized to enflrre the speedlest
fuoplernentatlon of the Prlnclples adopted by the Geneva conference. uley consid.ered
tlrat the report presented by the secretariat (m /B/zo) woul-d not be-e sufficlent
I
basis for funplenentlng conference reconnend.ations A.r"J. Tn the oplnlon of those (
delegations, the Secretary-General shou;Ld, on the basis of the replies from
countries, prepare a report on the positlons of the member states on each of the -
 A/ovz)/1].c1a, L
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Page ll '

Prlnclples ageinst vhi ch they had voted or on vb-l ch they had abetaLned or reserved
*Lo{r naci*.i^ha
-onference. fhose delegatlons thereiore consldered that it
a+ +La a

vould not be advisable to set up an expert vorlilng group on the Principles, Tn

thj.s connexlon, 1t va6 gtressed. that fuither r,rorli of the Board on the Prlnclpfes
and on reaching the broadeBt posslb]-e agreement thereon, as envlsaged ln the
recomendatlon contalned 1n annex A.I.l to the trinal Act, ought to be carefully
prgpared for lts consldevatlon at the third and subsequent sessions of the Board.
It
\
20. Some delegatJ.ons from developed countrles rith
market econonies maintained
the vlelr that the task before the Soard vas not one of adoptlng any princLl.:Ies
acceptable to some countries end not to others, but 1n reaching as univqrsa.l- an
agreenent as posslble on a balanced e,nd coherent set of prlnclpl-es vhlch would forn
a lilnd of lntenmtional 'rcode of behavlourt' ln the flel-d of tlade. They conFldered
that, at the present ju.ncture, the maln tasli vas. to declde on certaln practlcal
measures concernlng the procedure to be follor.red. [hey considered that the
setting up of a special body for further vorlt on prlncLples nlght be a prontslnc
roethod if preceded. by an appropriate prellnlnaxy inquiTy carrled out by the
secretarXr-General of the Conference. CertaLn deJ-egatlons believed that this 'rcode
of behavlour" could lead tolrarde an eventual ttchartertt of a contractual- character
on lntexnational trade.
2L. Other delegations thprlght that :turther r,rorl; on the implenentation of the
recomnendatlon !n annex A.I.J could not be delegated to a Fpecial- body but shoul-d
be carrled out by the Soard Ltsel-f. In their viewr- thts i6 a matter vhich deue,nds
pot-tttcal- negotiations at the hlghest level betreen member Governnents of WCTAD.
Ho\{ever, the Soard hrould be in a bettqr positton to ta}.e practical ectlon lf it
'were asslsted by a cormittee of e:perLs r.lhlch r.rouLd be a61ied to Btudy the vler.rs
expressed at the Conference to anafyse the reservations vhlch had been made at
the Conference, .to detenrine the points oa vhlch there vas agreenent or
dlsa6reenent and to final meanE ol Teachlng unanlmous agreernent on the Principles.
22. Bre foJ-lowLng proposals r.rere submitted to the Soard:
(") Draft resolution on Eteps to be taLien to a,chleve agreenent on a set of
prlnclples, subnltted by llrngaey, Pol-and and the Unton of Soviet Soc1a11st
O Republics (D/B/[.)+S);
A/6023/Add,.L
EngLlsh
Page L2
I
(b) Draft resolution on steps to be tahen to achleve agreenent on pr:inciples
governtng lnternatlonal- trade relatlons and trade tr)o]-lcles conduclve to developnent,
s ubnltted by a group of deveLoplng countrles (fDftf .Zt+).

2t. Ihe Board declded to revert to thls item at its thlrd session. It also
decldefl to refer to tha! sesslon the draft resolutions contalned Ln d.ocuments
D/B/L.\B anA rc/B/L.5I,,. It va6 understaod that tn the meantlme the Secretary-
General rrrould. talce sueh actton a€ he loay deem usefu.l for the further conslderatlon
of. thls iten by the 3oard.
2I'.. fhese d.raft resolutlons read. as follorrrs :
SIEPS TO BE TAKqV TO ACHIXYE AGRE,B4EI\T ON TBINCI?],ES GOYMNI}TG
INtrMI{ATTONA! MADE REI,AIIONS AND TBADE POI,IC]3S CONDUCIVE TO
DEITEIOPIENT (Sp,E ANNEITES A.I.1, A.I.? and. A.I.' OF Tm FINAT
ACI 0F IINCTAD, L96]+)

I
Poland and the Unton of Sovlet SociaList

"Recognlzlng the necesslty for the speedlest impleuentatlon of the

reconroend.atl-ons of
the unlted NatloEs co!,fer:ence on Trad.e and Devel0pment,
contained ln Annex A.I.l of the Ftnal Act of UNCTAD and in its onn
resolutLon 13 (T), on lrlnciples governl.ng lnternationa,l- trade relatlons
and trad.e policLes conduclve to d.evelopuent,

" Call.s upon those Covernments of countrles mem:llers of the Conference

'whlch eatered. in the Elnal Act of iIdcrAD reservations in respect of indlvidual
principJ-es governlng intemational trade relations and trad.e pollcleE
conducive to devel-opment, to inform the Seeretaiy-General of the Conference
oj thelr present positlon on each o_e the pd.nciples agalnst vhich they voted,
or on vhich they abstalned, at the Conference; and
"Requests the Secretary-General of the Conference to d.ra!,r up a report,
based 6i-Ee-Tepl1es received fron the c.overuments of countries memberi oi'
the Confeaence nentLoned above, on the measures which need to be tal.ren to
achieve the greatest possLble degree of agreement on the prLnciples in
questlon in the sl:orteFt posslble tine, for conslderatlon at the Boardts
third. sessLon.rl
 aleoztlell.t
English
Page 1-J

fI
1on, Chil-e , Ecuador , El- Sahador Ghena, Indla,

'''lhg :frace ano Develotr'mel--E loaro,

"".-ons Conference on Trade and

l Developm.ent adopted
and trade poI:lcies conducive
Principles governlng internatlonal trade relations
to development,

"Becalllng annexes A.I.L, A.I.2 and A.I.J of the Ei-na1 Act ol UNCTAD,
r!7e-i
nA)'
t

"wo{.i.lrg tlxe Secretarlat document mft/Zo,

' ttcallg upon those Govenimente of countrles melabers of the Conference to
lnfore the Secretary-General of the Conference of their present posltlon on
each of the Prlnclples agaLnst which they voted., or on r^'hich they abstained
or entered. reservatlons s,t the Conference;
t'Bequeots the Secretaql-Genere,l of the Conference to draw up a report,
baged on the replJ.es received. from the Govexy&ents of countrles nenbers of,
th€ Conference mentloned above and on the record.s of the r-lrst IINCTAD,
ldentlfl{ng the areas of agreement and disagreement., for conslderatlon at
the Board.rs thLrd sessLon r
"Recom.ends that ln the l-tgbt of this report, the Board, at lts third
oesslotl-i6i6-d5tlnite arrangements for the conslderation of this natter by
Covermment repreeentatives. "

(
1

I
 ,l/'^^- l" -.
Alovt2/ Arro,. -L
English
.Hage I+

CHAPIES IfT. THADE FIEIATIONS BETTNEN COI]I\II]RIES HAVING

DIT'FERNTT ECONOl'trC AND SOCIAL SYSTtr,,iS

2r. Itre reslonsLbllitles of UIfCTAD ln the fi.el-d of tracle betireen countrLes

havlng clfferent economlc and soclal systems r'rere considered by the Board at its
segond session.
25. Ihe Eoard in Lts conslderatlon of the question had before lt the fo11owin6
documents:
(") llote by the Secretary-Genera1 of UNCTA! on ,'problems arLslng 1n trade
relatlons between countrles havlng dlfferent econonl-c a,nd social systens"
(ra/s/ry/nev.t)1
(b) Revlsed Jolnt draft resolutlon submltted by Czechoslovalda, Ilunga11r,.
Poland and the Unlon of Sovlet Soctal-lst Republ-lcs (m/8fi.'.\f/Rev.2).
This drafi resol-utlon reatl as fo11ov6:
PFOBI,N.IS AMSING IN TRADE RETATTONS 3ETrtrN CCUNIP'MS
HA\TNVG DIIFtrRENT ECONOI,trC AITD SOCTAL SYSTEI4S

?oland and the Unlon of Sovlet

ri[he Trade and Developtrent Board,
rrpao rt
lsorru6 {n
-- trJh.] +L
General Asserobly resolutlon L995 (XIX) as veLl- as
ur.tat
the dedElSi?-6TTE6-unLted Nattons conference on Trade and Development refer
to the need to pronrote trade, lnter al-la, 'betr.leen countrles having different
social and. econonic systemE,
'S,OIISISg4IC
that t::ade between countr:ies of the East and the l.trest ls
an integral- part of r,rorl-d trade and that tire expanslon of this flor.r of trade
fiould posltlvely affect the nornallzatlon and expanslon of internatlonal
trade as a whole,
r'3elng conr{inced that the devel-opnent
of unhampered trade betryeen
countriEE-i?-TG-EdEE and the west vi1I be conducive to the lmr:r-enentation
of the declsions of the Conference,
"RecognLzlng that a soltrtLon of the probremg of trade bet'een countrles
having dlffe"ent social and econoulc systems is al_so of interest to ,che
devel-oping countrLes and ls 1n -eeplng vl r thelr effortg to divelslfy theJ.r
exporLs, and that it lrill, ln additlon, hel: to i.mprove their trade
relations as a. vhole,
 A/6ozj/Add.L
English
Page l!

"Considering that the deveJ-oplng countries raay have dlfferent soclal

and ec6ib'ic-EfrTems s,nd that a solutlon to thls probl-em nlght be conducive
to the developnent of trade relatlonE betveen them,
rrReeopnJzJns
the.t there shal-l be no dlscrlminatlon on the bagls of
diiierEiEEs-Ti-E6cio -econonlc systems,
"Reeoemiz{ns 'ftr r+.her that lnternatioaaf trade should be conducted to
nutual-aOvantage-on TEAEaslg of the nost-favoured-natlon treatroent and that
the grantLng of conceggions to developing countries on a non*discr1ml.natoLv
b basi6 and wLthout requlrlng any concessions from these countries in re'iur:n
sha1l not be regardecl as a deparLure fron the prlnclple of the most-favoured-
nation treatment ,
Taklng lnto account that developed countrles particlpatlng in
"
reglona]- economLc grouplngs should do thelr utlaost to eusure that thelr
economlc lntegratlon does not cause lnjury to, or otherwlse adversely affect,
the expEaslon of their LmporLs from thlrd dountr:les, and, ln particular,
fron the developlng countrl-e6, either lndivldually or coll-ectlvely,
"Recognizing ihrther that the 'lnmediate renovaL of elcisting
dlscriml:ratory and artLfLcial- barrlers and lLmitatlons ln trade bettieen
countries havlng different soclal- and econonic systerns vill have a
favourable lmpact on the expansion of Lntennational trade a6 a i'rhole and
the trade of the developLng countries 1n particuLar,
t'1. ,qppeaLs to Goverr:ments to tahe measures for the earllest possible
removal- of all forns of di s crlninatlon and ar-tlflcial obstacl-es ln trade
between countrles havJ.ng different soclal. and econon-ic systeus, including
devel-oplng countries rd.th dlfferent social and econonic systems;

"2. RequeEts the Secretary-General of UITCTAD to subnit per:iodical1y,

to the Con?EidFe or to ttre 3oard, reports on problems of trad.e betr,reen
countries havlng different soclal- and economic systens i
of UNCTAD to eubnit tl]e
first such report not later than to the fourth seeslon of the 3oard.;
"4. Reconmends to the Secretary-General of UIVCT.I\D that such reports
cover the noEf urgent problems of trade betrreen countrLes of the East and
the West as r,rel1 as the rol-e of this flow of trade for the e:4:ansj.on of
interaational trade aE a Jrhofe, due account belng talien of the results of
the activitles of Unlted lilatlons organs and other lnter-goverrrmental
ovganizations and agreenents deal-lng lllth questionE of lnternatlonal
economlc relations i
\
"5. InvLtes the regional econonlc coudsslons to glve systenatic
o consj.deratl6i-To-the cleveloplent of trade betreen countdes havlng different
social and. econonlc systens 1n the light of General Assembly
resofutlon 1995 (lGX) and to lntensl-iy their efforts ln Eeeliing eolutj-ons
to probJ.eus alislng therefrou. t'
A / Sozt /Add.L
EngLi.sh
fape ro

21 . their vlevs on the nature and scope of the

lnjlmerous delegatlons presented
probfenl, 1ts relevance to the objectives of TINCTAD and suggestions lor appropriate
r+ays of deal-lng vlth lt.
2il. fhe dlscussion touched on the relatlon bet\'/een world trade generally and
trade betneer: countrles lrlth different syotems and on the lsoue of the blnd and
amount of work the Trade and Development Soard Ehould undertalie in thi6 special
field. l,lany delegatlons said tjrat lt r,ras inlortant that IINCTAD should. cover
the totallty of the rntorldrs trade problens and help to achieve a vorliable system
of trade relatlons, necessary to flrlflf UNCTAD I s objectlves; they recognlze the
relevance and elgnlflcance of trade between cor-rntrles havlng different econolllc
and. i.f.!ia.- sl-stenB, as an integral part of vor]-d trade, for the l@plementation of
the recomrend.ati-ons and. conclusions of the Conference.
29. Tlre soclalLst countrl-es o; Eastern trUrope s?o-:e 1n iavoul of the
iro;ral"Lzatlon of trade betueen Ea6t and llest. The developing countries in
pa:tlcrrlar, indlcated thelr lnterest 1n contlnulng efr'orts to diversl:y thelr
trade b;r expl-oring all posslbillties of lncreaslng thelr exports to socialist
countrlesi they a16o expreEsed thelr concern that there should be a progressive
solution of East-liest trade problens, vhich dlrectly affect the trade of the
deTeloplng countrles.
JO. A varlety of vlews uas eripressed as to the ng,tuxe and scope o: the lssue and
1ts relatlve lmportance for the vor:k of the Board. I:e delegatlons fron the
eoclal-ist cormtrles of Eastern Europe emphasized that the problen under d.lscussion
ffas in essence a problero of trade between the soclalist countries a.nd the developed
countries \t1th narket economLes, In the oplnlon of those delegattons, the problen
vould not have arisen lf the llestem countrles l:ad not practlsed discrinination
in trade rrith these countries " General Prlnclples Tfio, Elght and Nine adopted
by the Conference dea$ dlrectly vith the prob].e!1 under discusslon and offered a
basis for lte solution. Recognizing the signiflcance of the problem of trade
be'hreen F€st and l{est, the Conference, by vlrtue of reconrrenda,tlon A.W.'/, had
transnitted the draft recomenda,tion on the question of trade among countries (
I

having dlfferent economlc and social syetens, lrhlch had been subrritted by
,]

Czechoslovalda, to the Unlted Natlons trade machlnery for lts conslderation" In I

'rlrr r1.'hr ^1'r:Fnar"eI Aaqembly resolutlon 1t95 (llTX), the delegatlons fron the
I