Common Fund (Hansard, 18 April 1978)

§ Mr. Dell

, pursuant to his reply [Official Report, 17th April 1978], gave the following information:

A Commonwealth meeting on the Common Fund was held at ministerial level in London on 13th–14th April. Thirty-two Commonwealth countries were represented.

This was a useful meeting, which I believe all participants regarded as a success. I particularly welcomed the opportunity to outline the positive nature of 103W our own approach to the Common Fund negotiations. There was full exchange of views on all major aspects of the fund. Ministers sought to identify, without prejudice to national positions, elements of an approach which could contribute constructively to the wider international consultations now in progress on the prospects for a resumption of negotiations in UNCTAD.

I am placing in the Library of the House a copy of the statement that I made at the meeting. Following is the text of the communique issued at the end of the meeting:

Commonwealth Ministerial Meeting on the Common Fund

Marlborough House, London

13–14 April 1978

Final Communique

1. Commonwealth Ministers from thirty-two countries met in London on April 13 and 14 to review the state of negotiations on the Common Fund, to consider the report of the Technical Group set up by Commonwealth Heads of Government and to have close consultations at this critical period when renewed efforts are being made to find an acceptable basis for the resumption of the negotiations. The Right Hon. Edmund Dell, British Secretary of State for Trade, was in the Chair.
2. Ministers congratulated the Chairman and members of the Commonwealth Technical Group for the expeditious manner in which they had discharged their mandate. They recognised that the analysis of the Technical Group was helpful to efforts aimed at reaching closer accord on the essential elements of a Common Fund.
3. Ministers agreed on the importance of achieving significant progress in the Common Fund negotiations to the ongoing dialogue between developed and developing countries seeking the establishment of a new international economic order. They regretted the delay in establishing the Common Fund to which the international community as a whole is committed as well as the slow progress in preparing for the negotiation of international commodity agreements, whose conclusion on a broad basis would be facilitated by the creation of the Common Fund. Concern was expressed that this situation was not consistent with declared commitments towards the establishment of a new international economic order.
4. Aware of the crucial importance of commodities in the trade and economic life of developed and developing Commonwealth countries and the urgency of finding solutions for the problems involved, they expressed determination to work for an early resumption of the Negotiating Conference on the Common 104 Fund and its successful conclusion. They urged the international community at the same time to renew its efforts towards an early establishment of the Common Fund, as a key instrument in attaining the agreed objectives of the Integrated Programme for Commodities.
5. Ministers considered that the time had come when the international community should move away from the polarised 'source' and 'pool' concepts and work towards establishing a Common Fund designed to make fullest use of all available funds. Ministers recognised that there was now greater willingness to consider favourably at the appropriate stage in the UNCTAD negotiations proposals both for direct government contributions to the Fund's capital and also deposits by ICA's and borrowing as possible sources of finance. While the precise mix of some or all of these elements would be a matter for negotiation, Ministers felt that the Fund should be so structured as to ensure the most efficient operation of the Common Fund while recognising the special problems of developing countries.
6. Ministers agreed that measures other than buffer stocking played an essential part in the implementation of the Integrated Programme for Commodities. Ministers accepted the possibility of a financial role for the Common Fund in this area as an element in a wider international consensus on the objectives and structure of the Fund. Ministers agreed that any such role would need to be precisely defined, taking account of existing international activity in support of other measures, and should appropriately reflect the collective interests of commodity producers and consumers.
7. Ministers agreed that the negotiations on the Common Fund should take account, as appropriate, of the interests and problems of developing importing countries, particularly the least developed and most seriously affected among them including island and landlocked economies and those lacking in natural resources.
8. Ministers agreed that the organisation, management and voting structure of the Fund would have to be determined in the light of decisions on its scope and financial structure, taking into account the character of the Fund as an institution intended to contribute to the attainment of the objectives of a new international economic order.
9. Ministers expressed satisfaction with the discussion of the issues that the customary style of Commonwealth consultations had made possible. They felt that in view of the Kingston Commonwealth initiative and the large Commonwealth interest in commodity trade, Commonwealth involvement in the commodity issue must continue until there is a satisfactory outcome. They agreed that it would be beneficial for their discussions to resume during the UN Negotiating Conference and requested the Secretary-General to arrange for Commonwealth consultations to be held during the resumed negotiations.