HC Deb 24 November 1975 vol 901 cc62-7W
Mr. Horam

asked the Prime Minister if he will circulate with the Official Report the statement he made to the Heads of State and Government at Rambouillet about the proliferation of international agencies dealing with trade, energy, development and monetary questions.

The Prime Minister

Yes. I took the opportunity of the meeting at Rambouillet to draw attention to this serious problem, and circulated to the other participants a list of the many bodies concerned with the subjects on the agenda of the meeting. The list, which excludes many EEC and Commonwealth bodies, is as follows:

B. Groupings with a Monetary Emphasis
(a) International Monetary Fund

128 Members. Objectives are:

  1. (i) to promote a freer system of world trade and payments as means of helping members to achieve economic growth, high employment levels and improved living standards;
  2. (ii) ensure that adjustment process works smoothly;
  3. (iii) ensure that world liquidity is adequate to meet (i) and (ii). Run by Board of Governors, with day-to-day administration by Executive Directors on continuing basis. Interim Committee of 20 Governors set up in 1974 to supervise adaptation and management of the monetary system and to deal with sudden disturbances.
(b) Group of 10 (G10) Members are: United States, United Kingdom, Belgium, France, Germany, Italy, Netherlands, Sweden, Canada and Japan (the IMF members participating in General Agreements to Borrow (GAB)). Switzerland attends as observer. Irregular and ad hoc meetings of officials. Useful for confidential discussion of international monetary problems. Ministers meet to discuss wider political aspects.
(c) Group of 5 (G5) Comprises United States, United Kingdom, Germany, France and Japan (and sometimes Italy). Irregular meetings of Finance Ministers usually before major IMF meetings, provide discussion of major economic issues in wider context. Try to agree a common line. Also meetings of officials.
(d) Bank for International Settlements (BIS) Promotes co-operation among Central Banks and also acts as a Banker for them; in particular by participating in currency and gold swap arrangements. Governors meet regularly in Basle under BIS auspices to discuss major banking and monetary issues. Present membership comprises European and a small number of other major Central Banks.
(e) Organisation for Economic Co-operation and Development (OECD).

24 developed members: EEC and EFTA members plus Finland, Greece, New Zealand, Iceland, Spain, Turkey, Canada, Australia, United States and Japan. Yugoslavia is associated with some OECD work. Three main objectives:

  1. (i) to promote highest sustainable economic growth and employment and rising standard of living in member countries;
  2. (ii) contribute to sound economic expansion of members and non-members which are in process of development;
  3. (iii) further expansion of world trade on multi-lateral non-discriminatory basis in accordance with international obligations.
(i) Working Party No. 3 A working party of the Economic Policy Committee. Deals with policies to promote equilibrium in international payments. Comprises high-level financial and central bank officials of 10 principal OECD countries.
(ii) Other Committees and ad hoc groups covering a wide range of activities.
(f) Group of 77 (G77) The developing countries, now more than 77, who act as a group at international meetings, especially UN Bodies.
(g) Group of 24 (G24) Developing country group (8 each from Africa, Asia, Latin America) deputed by G77 to consider monetary matters at Ministerial level.
(h) Group of 33 (G33) Comprises G24 at official level plus 9 developing country Executive Directors of IMF.

2. RELATIONS WITH DEVELOPING COUNTRIES
(a) Conference on International Economic Cooperation (see also under Energy, Raw Materials and Commodities) 27 members, with aim of representing interests of ldc's, oil producers and developed countries. Meets at Ministerial level on 16th December. 4 Commissions: Energy; Commodities; Development problems; Financial questions.
(b) UNCTAD IV Takes place in Nairobi in May 1976. Agenda will cover broad range of economic and trade questions.
(c) IMF/IBRD Joint Development Committee Meets regularly. Broad mandate to review and advise on all aspects of transfer of real resources to developing countries
(d) IBRD Aims to assist in development of productive facilities and resources in developing countries, mainly by hard loans. Also provides technical assistance.
(e) International Development Association (IDA). Promotes development of ldc's mainly by providing finance on very soft terms. Open to IBRD members.
(f) International Finance Corporation Encourages growth of productive private investment in developing countries. Open to IBRD members.
(g) Development Assistance Committee (an OECD body). Members have agreed to secure expansion of volume of resources made available to ldc's and to improve their effectiveness. Members periodically review amount and nature of their contributions to aid programmes and consult on their development assistance policies.

3. ENERGY
(a) CIEC Originally the consumer/producer dialogue, now extended to cover whole range of relations with developing countries. Its Commission on Energy will "facilitate all arrangements which may seem advisable in the field of energy". 10 developing country members including oil producers and 5 industrialised. Agenda undefined.
(b) International Energy Agency 18 industrialised members, not including France. Aims to improve consumer co-operation in development of alternative energy resources, energy conservation, R&D, emergency oil sharing and co-operation with oil producers and ldc's. Much preparatory work done.
(c) OECD: Temporary Working Party of E.P.C. Covers all aspects of financial relations between oil producers and industrialised consumers which might be relevant to CIEC.

4. RAW MATERIALS AND COMMODITIES
(a) OECD High-Level Group on Commodities Studying commodity problems, particularly in context of UNCTAD IV and CIEC.
(b) UNCTAD Committee on Commodities Following up resolution of Seventh Special Session and studying UNCTAD integrated approach.
(c) CIEC A Raw Materials Commission is proposed. Its rôle has not been decided.
(d) MTN's (see also 1 A(a)(i) In the raw materials field, work is proceeding on tropical products, agriculture and the sectoral approach.
(e) Food and Agriculture Organisation (FAO) A comprehensive strategy on agricultural commodities is being examined.
(i) World Food Council First met in June 1975. Purpose is to co-ordinate follow-up action to World Food Conference. Studying measures to increase food production, food aid, world grain reserves, and fertiliser supply.
(ii) Committee on Commodity Problems. Responsible for reviewing production/trading/distribution and related economic problems concerning commodities. Undertakes international review of commodities situation and solving of commodity problems on international basis. Reports to FAO Council.

(iii) World Food Programme Set up under Resolution of World Food conference Its governing body is to be reconstituted into the Committee for Food Aid Policies which will be concerned with overseeing food and food aid policies and programmes. Will report directly to World Food Council (see (i) above) as well as to FAO and ECOSOC. Will probably meet in April-May 1976.
(iv) International Fund for Agricultural Development (IFAD). Aim is to invest in food production in ldc's by helping projects and programmes as well as by grants. United Kingdom is a member of Ad Hoc Working Group. No financial contributions have vet been made.
(f) IWC (International Wheat Council) Follow-up to World Food Conference. Its work is concerned with discussion of cereals in MTN's