HL Deb 19 April 1977 vol 382 cc1-4
Lord BROCKWAY

My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.

The Question was as follows:

To ask Her Majesty's Government what conclusions were reached at the Geneva Conference between representatives of developed and developing countries on the proposal to establish a Common Fund.

Lord ORAM

My Lords, the United Nations negotiating conference on a Common Fund ended on the 3rd April. The conference did not adopt a formal decision or resolution. Instead, the chairman made a statement summing up his understanding of the principal developments during the session, and inviting the conference to reconvene later this year. With permission, I will insert the text of the chairman's statement in the Official Report.

The statement was as follows:

  1. 1. This Conference was convened in pursuance of Resolution 93 (IV) for the negotiation of a Common Fund under the Integrated Programme for Commodities.
  2. 2. During the course of the negotiations the developing countries affirmed their unanimous commitment to the establishment of a Common Fund, to serve as the main instrument for attaining the objectives of the Integrated Programme for Commodities as embodied in Conference Resolution 93 (IV) and to function as the central source of finance for specific objectives and purposes as outlined in a preliminary way in Annex I to document TD/B/IPC/CF/8. In this context, the Group of 77 also submitted to the Conference the draft decision contained in TD/IPC/CP/CONF/CW/L.1.
  3. 3. China supported the proposals made by the developing countries. Some developed countries supported, or were prepared to support, the proposals made by the developing countries, while a number of developed countries also expressed their readiness to participate in and financially support a Common Fund.
  4. 4. Group B submitted a discussion paper in Annex I to TD/B/IPC/CF/6 and a provisional position paper in TD/IPC/CP/CONF/L.3.
  5. 5. The countries members of the European Economic Community agreed that there should be a Common Fund. Other developed countries stated that they were prepared to consider, with a positive and open attitude, the establishment of a common funding arrangement.
  6. 6. The countries members of Group D agreed in principle with the idea of a Common Fund in the framework of the Integrated Programme for Commodities.
  7. 7. Although it was not possible to proceed further at this session, it appears to me that there is a large consensus that a Common Fund should 3 be established in accordance with Resolution 93 (IV) to serve as a main instrument of the Integrated Programme for Commodities. In the light of this, there is agreement that the Conference reconvene at a plenipotentiary level to complete its work.
  8. 8. Taking into account the urgency which the Conference attaches to this work and the timetable agreed upon in Nairobi it would seem desirable that the Conference should reconvene not later than November 1977. To this end the Secretary-General of UNCTAD is requested:
  1. (1) to propose specific dates for the reconvened session of the Conference for approval by the Trade and Development Board at the second part of its sixteenth session;
  2. (2) to make the necessary arrangements in the light of the decision of the Trade and Development Board;
  3. (3) to conduct such consultations as may be appropriate in order to facilitate the work of the reconvened Conference, in consultation with the President of the Conference and taking into account the terms of reference and the programme of work of the ad hoc Intergovernmental Committee for the Integrated Programme for Commodities.

Lord BROCKWAY

My Lords, I am sure we all much appreciate that. May I ask the Minister this question? Is it not the fact that the representative of the 100 developing countries was rather disappointed with the result, blaming not only the industrialised countries of the West but the Communist countries of the East? Further, why does this difference exist between UNCTAD and the EEC, which almost simultaneously reached very hopeful decisions on this matter?

Lord ORAM

My Lords, the developing countries expressed their disappointment that there was not what they would consider a more positive outcome to the conference, but we think that real progress was made in identifying practical issues. There is a distinct difference between the position which the European Community has reached in its discussions and that of the original UNCTAD proposal. That proposal envisaged a Common Fund independent from the negotiation of commodity agreements, whereas the position that the Community now adopts is that a need exists for a Common Fund which will bring together the financial resources of individual commodity agreements. That, I think, is the difference between the two positions.

Lord BROCKWAY

My Lords, while thanking the Minister for that reply, may I ask him whether, as the developing countries hope, an agreement on this matter may be reached in November?

Lord ORAM

My Lords, I should not like to forecast. We feel that the work done during this recent conference provides a good basis for further constructive negotiations at the end of the year.

The Earl of LAUDERDALE

My Lords, could the noble Lord confirm that the British Government now support the principle of a Common Fund of some kind?

Lord ORAM

Yes, my Lords; as I indicated earlier, we agree to the principle of a Common Fund according to the description which I gave earlier.

Lord BROCKWAY

My Lords, is the Minister aware that we welcome distinguished converts?

Lord ELTON

My Lords, will the noble Lord exercise his good offices to assist the United States to arrive at a similar position when reviewing its policy under the new Administration, preferably in time for the CIEC meeting in Paris next month?

Lord ORAM

My Lords, we shall be in continuous consultation with the United States Government, which at this time takes a different position from that of Her Majesty's Government and the European Community.

Lord LEE of NEWTON

My Lords, can my noble friend say why so many organs of the Press sought to give the wrong impression that complete deadlock had been reached on this matter when in fact it had not?

Lord ORAM

My Lords, it is not for me to explain the motives of the Press; but it is true, as I have indicated, that in our view, at least, the conference was by no means a complete failure. Real progress was made.

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