United Nations

A/51/602


General Assembly

Distr. GENERAL  

6 December 1996

ORIGINAL:
SPANISH


                                                        A/51/602

General Assembly
Fifty-first session
Agenda item 94


                        MACROECONOMIC POLICY QUESTIONS
                                       
                        Report of the Second Committee
                                       
          Rapporteur:  Ms. Silvia Cristina CORADO-CUEVAS (Guatemala)
                                       
                                       
                               I.  INTRODUCTION

1.   At its 3rd plenary meeting, on 20 September 1996, the General
Assembly, on the recommendation of the General Committee, decided to
include in the agenda of its fifty-first session the item entitled:

     "Macroeconomic policy questions:

     "(a) External debt crisis and development;

     "(b) Financing of development, including net transfer of resources
between developing and developed countries;

     "(c) Trade and development;

     "(d) Commodities"

and to allocate it to the Second Committee.

2.   The Second Committee considered the item at its 29th to 33rd and
35th to 38th meetings, on 7, 8, 11, 12, 18 and 25 November and
2 December 1996.  An account of the Committee's consideration of the
item is contained in the relevant summary records (A/C.2/51/SR.29-33
and 35-38).  Attention is also drawn to the general debate held by the
Committee at its 3rd to 6th and 8th meetings, from 14 to 18 October
(see A/C.2/51/SR.3-6 and 8).

3.   For its consideration of the item, the Committee had before it the
following documents:

     Item 94.  Macroeconomic policy questions

     (a)  Letter dated 20 March 1996 from the Permanent Representative
of Peru to the United Nations addressed to the Secretary-General,
transmitting the Trujillo Act and the Protocol Amending the Cartagena
Agreement signed at Trujillo, Peru, on 10 March 1996 by the Heads of
State of Bolivia, Colombia, Ecuador and Peru, the Personal
Representative of the President of Venezuela and the President of
Panama as an observer (A/51/87);

     (b)  Letter dated 5 July 1996 from the Permanent Representative of
France to the United Nations addressed to the Secretary-General,
transmitting the final documents of the summit meeting of the group of
seven major industrialized countries, held at Lyon, France, from 27 to
29 June 1996 (A/51/208-S/1996/543);

     (c)  Note verbale dated 11 July 1996 from the Permanent Mission of
Bulgaria to the United Nations addressed to the Secretary-General,
transmitting the Sofia Declaration on Good-neighbourly Relations,
Stability, Security and Cooperation in the Balkans, adopted at the
meeting of the Ministers for Foreign Affairs of the countries of
South-Eastern Europe, held at Sofia on 6 and 7 July 1996
(A/51/211-S/1996/551);

     (d)  Letter dated 12 September 1996 from the Permanent
Representative of the Marshall Islands to the United Nations addressed
to the Secretary-General, transmitting the text of the communique'
adopted by the twenty-seventh South Pacific Forum, held at Majuro from
3 to 5 September 1996 (A/51/357);

     (e)  Letter dated 13 September 1996 from the Permanent
Representative of Bolivia to the United Nations addressed to the
Secretary-General, transmitting the declaration of the Tenth Summit of
Heads of State and Government of the Rio Group, held at Cochabamba,
Bolivia, on 3 and 4 September 1996 (A/51/375);

     (f)  Letter dated 30 September 1996 from the Permanent
Representative of Colombia to the United Nations addressed to the
Secretary-General, transmitting the declaration of the Movement of
Non-Aligned Countries adopted in New York on 24 September 1996 on the
occasion of the celebration of the thirty-fifth anniversary of the
founding of the Movement (A/51/462-S/1996/831);

     (g)  Letter dated 4 October 1996 from the Permanent Representative
of Costa Rica to the United Nations addressed to the
Secretary-General, transmitting the declaration adopted by the
Ministers for Foreign Affairs of the Group of 77 and China at their
twentieth annual meeting, held in New York on 27 September 1996
(A/51/471);

     (h)  Letter dated 30 September 1996 from the Permanent
Representative of Colombia to the United Nations addressed to the
Secretary-General, transmitting the communique' of the Meeting of
Ministers for Foreign Affairs and Heads of Delegation of the Movement
of Non-Aligned Countries to the fifty-first session of the General
Assembly, held on 25 September 1996 (A/51/473-S/1996/839);

     (i)  Letter dated 5 November 1996 from the representatives of
Azerbaijan, Kazakstan, Kyrgyzstan, Turkey, Turkmenistan and Uzbekistan
to the United Nations addressed to the Secretary-General transmitting
the Tashkent Declaration, signed on 21 October 1996 at the end of the
fourth summit meeting of the Heads of State of the Turkish-speaking
countries (A/51/664-S/1996/930);

     Item 94 (a).  External debt crisis and development

     Report of the Secretary-General on the developing country debt
situation as at mid-1996 (A/51/294);

     Item 94 (b).
     Financing of development, including net transfer of resources
     between developing and developed countries

     (a)  Report of the Secretary-General on net transfer of resources
between developing and developed countries (A/51/291);

     (b)  Report of the Secretary-General on global financial
integration: challenges and opportunities (A/51/388);

     Item 94 (c).
     Trade and development

     (a)  Report of the Trade and Development Board on its thirteenth
executive session (A/51/15, vol. I); 1/

     (b)  Report of the Trade and Development Board on its forty-third
session (A/51/15, vol. II); 2/

     (c)  Report of the Secretary-General on strengthening
international organizations in the area of multilateral trade
(A/51/331);

     (d)  Note by the Secretary-General transmitting the report of the
Joint Inspection Unit entitled "United Nations Conference on Trade and
Development: review of institutional and programme issues" (A/51/152)
and the comments of the Secretary-General thereon (A/51/152/Add.1);

     (e)  Note by the Secretary-General transmitting the report of the
secretariat of the United Nations Conference on Trade and Development
on specific measures in favour of island developing countries
(A/51/255);

     (f)  Note by the Secretary-General transmitting the progress
report of the Secretary-General of the United Nations Conference on
Trade and Development on measures designed to improve the transit
transport environment in Central Asia (A/51/288);

     (g)  Note by the Secretary-General transmitting the Midrand
Declaration and a document entitled "A Partnership for Growth and
Development", adopted by the United Nations Conference on Trade and
Development at its ninth session, held at Midrand, South Africa, from
27 April to 11 May 1996 (A/51/308);

     (h)  Letter dated 18 September 1996 from the Permanent
Representative of Bolivia to the United Nations addressed to the
Secretary-General, transmitting the opinion of the Inter-American
Juridical Committee entitled "Freedom of trade and investment in the
hemisphere", which was endorsed by the Tenth Summit of Heads of State
and Government of the Rio Group, held at Cochabamba, Bolivia, on 3 and
4 September 1996 (A/51/394);
 
     (i)  Letter dated 1 October 1996 from the Permanent Representative
of Bangladesh to the United Nations addressed to the
Secretary-General, transmitting the text of the declaration adopted by
the Ministerial Meeting of the Least Developed Countries, held in New
York on 30 September 1996 (A/C.2/51/4);

     (j)  Letter dated 7 November 1996 from the Permanent
Representative of Uruguay to the United Nations addressed to the
Secretary-General, transmitting the report of the Third Meeting of
Government Officials Responsible for Trade Policy in Latin America and
the Caribbean, held at Montevideo on 25 October 1996 (A/C.2/51/7);

     (k)  Letter dated 20 November 1996 from the Permanent
Representative of Zimbabwe to the United Nations addressed to the
Secretary-General, transmitting a joint communique' entitled "The
current international trading system and prospects for the promotion
of trade among developing countries", released at the sixth meeting of
the Summit Level Group of Developing Countries, held at Harare from 3
to 5 November 1996 (A/C.2/51/10).

4.   At the 29th meeting, on 7 November, introductory statements on
sub-items (c) and (d) were made by the President of the Trade and
Development Board and the Secretary-General of the United Nations
Conference on Trade and Development (see A/C.2/51/SR.29).

5.   At the 30th meeting, on 7 November, the representative of the
Joint Inspection Unit made an introductory statement (see
A/C.2/51/SR.30).

6.   At the 32nd meeting, on 11 November, an introductory statement on
sub-items (a) and (b) was made by the Chief of the International
Economic Relations Branch of the Department for Economic and Social
Information and Policy Analysis (see A/C.2/51/SR.32).


                        II.  CONSIDERATION OF PROPOSALS

                 A.  Draft resolution A/C.2/51/L.24 and Rev.1

7.   At the 35th meeting, on 18 November, the representative of Costa
Rica, on behalf of the States Members that are members of the Group of
77, China and Colombia (on behalf of the States Members that are
members of the Movement of the Non-Aligned Countries), introduced a
draft resolution entitled "Enhancing international cooperation towards
a durable solution to the external debt problem of developing
countries" (A/C.2/51/L.24), which read:

          "The General Assembly,

          "Recalling its resolutions 48/165 of 21 December 1993 and
     50/92 of 20 December 1995 and the relevant provisions of the
     report of the Ad Hoc Committee of the Whole of the General
     Assembly for the Mid-term Review of the Implementation of the
     United Nations New Agenda for the Development of Africa in the
     1990s, 3/ as well as other relevant international agreements
     concerning international cooperation towards a durable solution to
     the external debt problem of developing countries,

          "Reaffirming the urgent need for effective, equitable,
     development-oriented and durable solutions to the external debt
     and debt-servicing problems of developing countries, and to help
     them exit from the rescheduling process,

          "Noting the debt-relief measures undertaken by creditor
     countries within the framework of the Paris Club and the recent
     initiative of the World Bank and the International Monetary Fund
     to reduce the debt burdens of the heavily indebted poor countries,

          "Stressing the urgent need to further assist developing
     countries, in particular the poorest and heavily indebted
     countries, especially in Africa, in their efforts to improve their
     debt situation in view of their continued very high level of total
     debt stock and servicing burdens,

          "Noting with concern the continuing debt and debt-servicing
     problems of indebted developing countries as constituting an
     element adversely affecting their development efforts and economic
     growth, and stressing the importance of alleviating the onerous
     debt and debt-service burdens connected with all types of debt of
     a large number of developing countries, on the basis of an
     effective, equitable, development-oriented and durable approach
     and, where appropriate, addressing the full stock of debt of the
     poorest and most indebted developing countries as a matter of
     priority,

          "Noting that those developing countries that have continued,
     at great cost to themselves, to meet their international debt and
     debt-service obligations in a timely fashion have done so despite
     serious external and domestic financial constraints,

          "Expressing its concern that debt-relief measures taken so
     far have not yet fully provided effective, equitable,
     development-oriented and durable solutions to the outstanding debt
     and debt-servicing problems of a large number of developing
     countries, in particular the poorest and heavily indebted
     countries,

          "Stressing the need for continuing global economic growth and
     the necessity for a continuing supportive international economic
     environment with regard to, inter alia, terms of trade, commodity
     prices, improved market access and access to international
     financial markets, flow of financial resources, trade practices,
     access to technology and technological infrastructure, exchange
     rates and international interest rates, and noting the continued
     need for resources for sustained economic growth and sustainable
     development of the developing countries,

          "1.  Takes note of the report of the Secretary-General on the
     developing country debt situation as of mid-1996; 4/

          "2.  Recognizes that effective, equitable,
     development-oriented and durable solutions to the external debt
     and debt-servicing problems of developing countries, which should
     be achieved through a once-and-for-all approach, can contribute
     substantially to the strengthening of the global economy and to
     the efforts of developing countries to achieve sustained economic
     growth and sustainable development;

          "3.  Notes that, owing to uneven developments within the
     context of the evolving international debt strategy, further
     progress, including new and concrete measures and innovative
     approaches, is essential as regards  contributing to effective,
     equitable, development-oriented and durable solutions to the
     external debt and debt-servicing problems of developing countries,
     particularly the poorest and heavily indebted countries;

          "4.  Stresses the need for the international community to
     promote a conducive external economic environment through, inter
     alia, improved market access, stabilization of exchange rates,
     effective stewardship of international interest rates and
     increased resource flows, as well as improved access to technology
     for the developing countries, and the importance for developing
     countries of continuing their efforts to promote a favourable
     environment for attracting foreign investment, thereby promoting
     economic growth and sustainable development;

          "5.  Recognizes that the evolving debt strategy must be
     accompanied by a favourable and supportive international
     environment, including the full implementation of the results of
     the Uruguay Round of multilateral trade negotiations and the
     Marrakesh ministerial decisions in favour of the least developed
     countries and the net food-importing developing countries; 5/

          "6.  Notes that the recent heavily indebted poor countries
     initiative represents a step towards assisting countries with
     substantial debt problems, while stressing the urgent need to
     ensure an expeditious, flexible, constructive and full
     implementation of the initiative that is in line with the need for
     comprehensive approaches;

          "7.  Stresses that the implementation of the heavily indebted
     poor countries initiative requires additional financial resources
     from both bilateral and multilateral creditors and therefore
     should not be pursued through the reallocation of resources
     already designated for development purposes;

          "8.  Urges the developed countries to give the heavily
     indebted poor countries initiative the support it both needs and
     deserves and to further refine the initiative so that the required
     six-year performance period is reduced to one lasting a maximum of
     three years and the terms of eligibility to be used in qualifying
     countries do not introduce new conditionalities;

          "9.  Stresses the importance of improving the terms of the
     eligibility criteria so as to expand coverage to other heavily
     indebted poor countries;

          "10.     Underlines the importance of the transparency and
     involvement of debtor countries in any review and analysis that
     will be conducted during the adjustment period;

          "11.     Emphasizes the urgent need for full, constructive and
     expeditious implementation of various debt-relief measures
     undertaken by creditor countries within the framework of the Paris
     Club, and urges bilateral creditors that have not participated in
     the Paris Club to undertake equivalent debt-relief measures
     including debt cancellations;
     
          "12.     Welcomes the decision taken by the Paris Club to go
     beyond the Naples terms to provide debt reduction for the poorest
     and most heavily indebted countries, stresses the need for the
     Paris Club to further consider the levels of debt reduction and
     urges all other bilateral creditors to make comparable
     contributions;

          "13.     Recognizes the efforts of indebted developing
     countries in regard to fulfilling their commitments on debt
     servicing despite the incurring of a high social cost and, in this
     regard, encourages private creditors and, in particular,
     commercial banks to continue their initiatives and efforts to
     address the commercial debt problems of middle-income developing
     countries;

          "14.     Invites creditor countries, private banks and
     multilateral financial institutions, within their prerogatives, to
     continue the initiatives and efforts to address the commercial
     debt problems of the least developed countries and the requests
     for continued mobilization of resources through the Debt-reduction
     Facility of the International Development Association in order to
     help eligible least developed countries reduce their commercial
     debt;

          "15.     Invites the International Monetary Fund to continue
     devising concrete measures and action to address the problems
     faced by indebted developing countries, including the possibility
     of selling part of its gold reserve;

          "16.     Reaffirms the Mid-term Global Review of Progress
     towards the Implementation of the Programme of Action for the
     Least Developed Countries for the 1990s, 6/ in particular the
     appropriate actions in favour of those countries concerning their
     official bilateral, commercial and multilateral debt;

          "17.     Notes with great concern the continuing burden of
     debt and debt-service obligations of middle-income countries,
     including in particular those in Africa, and urges creditors,
     including multilateral financial institutions and commercial
     banks, to continue to address their obligations effectively;

          "18.     Stresses the importance of continued concessional
     Enhanced Structural Adjustment Facility lending operations for
     low-income countries;

          "19.     Also stresses the need for, in addition to
     debt-relief measures that include debt and debt-service reduction,
     new financial flows to debtor developing countries, and urges
     creditor countries and multilateral financial institutions to
     continue to extend concessional financial assistance, particularly
     to the least developed countries, in order to support the
     implementation of economic reforms, stabilization and structural
     adjustment programmes and the eradication of poverty by the
     developing countries so as to enable them to extricate themselves
     from the debt overhang and to assist them in achieving sustained
     economic growth and sustainable development;

          "20.     Further stresses the urgent need to continue to
     provide social safety nets to vulnerable groups most adversely
     affected by the implementation of economic reform programmes in
     the debtor countries, in particular low-income groups;

          "21.     Calls upon the international community, including the
     United Nations system, and invites the Bretton Woods institutions,
     as well as the private sector, to take urgent measures and action
     for the implementation of the commitments, agreements and
     decisions of the major United Nations conferences and summits
     organized since the beginning of the 1990s on development related
     to the question of external debt;

          "22.     Stresses the need for the Secretary-General to
     monitor closely the implementation of the heavily indebted poor
     countries initiative on multilateral debts, so that the General
     Assembly at its fifty-second session is ably guided in its
     deliberations on the sub-item on the external debt crisis and
     development to be included in the provisional agenda of that
     session of the Assembly, under the item entitled 'Macroeconomic
     policy questions';

          "23.     Requests the Secretary-General, in close cooperation
     with the Bretton Woods institutions and other relevant bodies of
     the United Nations system, to report to the General Assembly at
     its fifty-second session on the implementation of the present
     resolution."

8.   At the 38th meeting, on 2 December, the Vice-Chairman of the
Committee, Mr. Kheirreddine Ramoul (Algeria) informed the Committee of
the results of the informal consultations held on the draft resolution
and drew the Committee's attention to a revised draft resolution
(A/C.2/51/L.24/Rev.1), submitted by the sponsors of draft resolution
A/C.2/51/L.24.

9.   At the same meeting, the representative of the Philippines orally
revised draft resolution A/C.2/51/L.24/Rev.1 as follows:

     (a)  At the end of the first preambular paragraph, the words
"other relevant international agreements concerning international
cooperation towards a durable solution to the external debt problem of
developing countries" were replaced with the words "the results, as
agreed, of all major United Nations conferences and summit meetings
held since the beginning of the 1990s";

     (b)  In the fifth preambular paragraph, the words "market
oriented" were deleted before the words "economic reforms";
     
     (c)  The ninth preambular paragraph, which had read "Noting, while
addressing the external debt and debt-servicing problems of developing
countries, the situation in some creditor countries with economies in
transition" was replaced with "Noting the situation in some creditor
countries with economies in transition in addressing the external debt
and debt-servicing problems of developing countries";

     (d)  In the tenth preambular paragraph, the words "and access to
international financial markets, flow of financial resources" were
deleted after the words "improved marked access", and the words "and
technological infrastructure" were deleted after the words "access to
technology";

     (e)  In operative paragraph 3, the words "Notes that further
progress, including new and concrete measures and swift implementation
of innovative approaches" were replaced with the words "Notes that
further progress, including swift implementation of innovative
approaches and concrete measures";

     (f)  In operative paragraph 4, after the words "sustainable
development", the words "so as to favour their exit from debt and
debt-servicing problems" were inserted and, after the words "resource
flows", the words "access to international financial markets, flow of
financial resources" were inserted;
 
     (g)  Operative paragraph 5 was deleted and the subsequent
paragraphs renumbered;

     (h)  In operative paragraph 6 (former paragraph 7), the words "and
the International Monetary Fund" were inserted after the words "World
Bank" and the words "necessary to achieve sustained economic growth
and sustainable development" were deleted at the end of the paragraph;

     (i)  In operative paragraph 7 (former paragraph 8), after the word
"creditors", the remainder of the paragraph, which had read:

     "and therefore should not be pursued at the expense of development
     resources, inter alia, through contribution by bilateral donors to
     the Trust Fund for the implementation of the Initiative, and
     welcomes the commitment made to provide such additional resources
     and bearing in mind the needs of developing countries as they are
     being addressed through ongoing development activities",

was replaced with:

     "without affecting the support required for development activities
     of developing countries, welcomes the commitment made to provide
     additional resources for the Initiative, and invites bilateral
     donors to contribute to the Trust Fund for the implementation of
     the Initiative";

     (j)  In operative paragraph 9 (former paragraph 10), the words
"evaluation for improving the terms of the eligibility criteria" were
replaced with the words "evaluating and actively monitoring the
implications of the existing terms of the eligibility criteria in the
implementation of the Initiative, so as";

     (k)  In operative paragraph 16 (former paragraph 17), the word
"great" was deleted before the word "concern" and, before the word
"creditors", the word "urges" within square brackets was deleted and
the square brackets removed from the word "encourages".

10.  Also at its 38th meeting, the Committee adopted revised draft
resolution A/C.2/51/L.24/Rev.1, as orally revised, without a vote (see
para. 38, draft resolution I).

11.  After the adoption of the draft resolution, statements were made
by the representatives of Costa Rica (on behalf of the States Members
that are members of the Group of 77 and China), Ireland (on behalf of
the European Union), the United States of America, Cameroon and
Andorra (see A/C.2/51/SR.38).


                 B.  Draft resolutions A/C.2/51/L.26 and L.53

12.  At its 35th meeting, on 18 November, the representative of Costa
Rica, on behalf of the States Members that are members of the Group of
77 and China, introduced a draft resolution entitled "Net flows and
transfer of resources between developing and developed countries"
(A/C.2/51/L.26), which read:

          "The General Assembly,

          "Reaffirming its resolutions 47/178 of 22 December 1992 and
     49/93 of 19 December 1994 on net flows and transfer of resources
     between developing countries and developed countries,

          "Taking note of the World Economic and Social Survey, 1996,
     7/ in particular chapter III thereof, entitled 'The international
     economy', and the report of the Secretary-General on the net
     transfer of resources between developing and developed countries,
     8/

          "Recognizing that the international community has a
     responsibility for giving strong support to the efforts of
     developing countries to solve their grave economic and social
     problems through the creation of a favourable international
     economic environment,

          "Noting that for many developing countries, especially those
     in Africa and the least developed countries, official development
     assistance remains an indispensable external source of financial
     resources to support their development efforts,

          "Stressing the unpredictable character of short-term private
     capital movements, which are particularly subject to interest-rate
     variations and other possible fluctuations in the domestic and
     international economic environment,

          "Expressing its concern that the net transfer of resources
     from multilateral financial institutions to developing countries
     has been negative in real terms,

          "Expressing its deep concern at the overall decline in the
     level of official development assistance,

          "1.  Stresses the need to increase efforts to ensure the flow
     of substantial resources to developing countries, through,
     inter alia, an expansion of multilateral credits, the promotion of
     foreign direct investment and an increase in the concessional and
     non-debt category of resources;

          "2.  Reaffirms the pressing need of developing countries for
     official development assistance and the urgent need for the
     industrialized countries to substantially increase that assistance
     so as to reach the internationally agreed target of 0.7 per cent
     of their gross national product for official development
     assistance as soon as possible;

          "3.  Urges all countries, particularly the major
     industrialized countries, which have significant weight in
     influencing the international economic environment, to apply sound
     macroeconomic policies, to continue to narrow global economic
     imbalances between the developed and developing countries, to
     cooperate with the developing countries so as to enhance their
     capacities in addressing and alleviating their major problems in
     the areas of money, finance, resource flows, trade, commodities
     and external indebtedness, and to promote an international
     economic system more conducive to a favourable international
     economic environment and sustained economic growth, particularly
     in developing countries;

          "4.  Stresses the importance of the role of the International
     Development Association as a highly concessional lending arm of
     the World Bank in promoting development in the developing
     countries and urges donors to fully honour their commitment
     thereto, in particular to the eleventh replenishment of the
     International Development Association, and to secure its adequate
     future funding;

          "5.  Appeals to all countries, particularly the developed
     countries, to cooperate and work together on issues relating to
     the financing of the Enhanced Structural Adjustment Facility
     during this interim period, including the sale by the
     International Monetary Fund of a part of its gold reserves, with a
     view to the achieving of a self-sustained Enhanced Structural
     Adjustment Facility;

          "6.  Urges international financial institutions and donor
     countries to improve the quality of their loans, inter alia,
     through an extension of their maturity, a lowering of their
     interest rates and an increase in the grant elements of such
     loans, and the removal of conditionalities, so as to enable the
     recipient countries to fully utilize the loans for their own
     development purposes;

          "7.  Calls upon international financial institutions and donor
     countries to remove non-economic barriers that seriously restrict
     their provision of loans to developing countries;

          "8.  Requests the Secretary-General to continue to monitor
     developments in the net flows and transfer of resources between
     developing and developed countries and, utilizing all relevant
     reports, such as those provided by the United Nations Conference
     on Trade and Development, the World Bank, the International
     Monetary Fund and the regional development banks, to report
     thereon in the World Economic and Social Survey, 1997, and also
     requests the Secretary-General to report, in close cooperation
     with the United Nations Conference on Trade and Development and
     the Bretton Woods institutions, to the General Assembly at its
     fifty-third session on the implementation of the present
     resolution."

13.  At the 37th meeting, on 2 December, the Vice-Chairman of the
Committee, Mr. Kheirreddine Ramoul (Algeria), introduced a draft
resolution entitled "Net flows and transfer of resources between
developing and developed countries" (A/C.2/51/L.53), which he
submitted on the basis of informal consultations held on draft
resolution A/C.2/51/L.26.
 
14.  Before the adoption of the draft resolution, a statement was made
by the representative of Costa Rica, on behalf of the States Members
that are members of the Group of 77 and China (see A/C.2/51/SR.37).

15.  At the same meeting, the Committee adopted draft resolution
A/C.2/51/L.53 without a vote (see para. 38, draft resolution II).

16.  After the adoption of the draft resolution, a statement was made
by the representative of the United States of America (see
A/C.2/51/SR.37).

17.  In the light of the adoption of draft resolution A/C.2/51/L.53,
draft resolution A/C.2/51/L.26 was withdrawn by its sponsors.


                  C.  Draft resolution A/C.2/51/L.28 and L.50

18.  At the 35th meeting, on 18 November, the representative of Costa Rica,
on behalf of the States Members that are members of the Group of 77 and China,

introduced a draft resolution entitled "Global financial integration and
strengthening collaboration between the United Nations and the Bretton Woods
institutions, in particular the International Monetary Fund" (A/C.2/51/L.28),
which read:

         "The General Assembly,

         "Reaffirming its resolution 50/91 of 20 December 1995, entitled
     'Global financial integration:  challenges and opportunities', and
     Economic and Social Council resolution 1996/43 of 26 July 1996 on
     strengthening collaboration between the United Nations development
     system and the Bretton Woods institutions,

         "Recalling section VII of annex I to General Assembly resolution
     50/227 of 24 May 1996 on the relationship between the United Nations and
     the international finance and trade institutions, as well as other
     relevant resolutions,

         "Stressing the relevance for the international community of the
     issue of global financial integration and that it should be a very
     important element of the relationship between the United Nations and the
     Bretton Woods institutions, in particular the International Monetary
     Fund, 

         "Welcoming previous initiative taken by the Bretton Woods
     institutions to invite the Secretary-General to address the joint World
     Bank/ International Monetary Fund Development Committee at its 1995 and
     1996 sessions,

                                       I

         "1.   Recognizes that technological advances have reduced the costs
     and increased the speed of international financial transactions and
     that, as policy liberalization has facilitated international capital
     flows, financial institutions have increasingly added foreign assets to
     their portfolios, paving the way to the phenomenon of global financial
     integration;

         "2.   Stresses that the process of global financial integration
     creates opportunities and challenges for the international financial
     system and that the Bretton Woods institutions, in particular the
     International Monetary Fund, should further contribute to the creation
     of a favourable international economic environment;

         "3.   Notes with concern that sharp fluctuations in both interest
     rates and exchange rates have the potential effect of disrupting the
     international monetary and financial system, thus aggravating the
     volatility of short-term capital flows;

         "4.   Stresses that Governments and international financial
     institutions have a role to play in preventing the negative effects of
     the volatility of short-term capital flows and in promoting stability in
     domestic financial markets;

         "5.   Recalls that further efforts have to be taken at both the
     national and international levels to avoid future crises of confidence
     in the international financial markets, which have the potential of
     negatively affecting not only developing countries, but the
     international economic system;

         "6.   Notes that while sound domestic macroeconomic policies of each
     country to promote macroeconomic stability are essential elements for
     determining the volume and structure of private capital flows,
     international macroeconomic policies play an important role in
     reinforcing their effectiveness, and should contribute to creating a
     favourable international economic environment;

         "7.   Notes also that a number of developing countries have been able
     to take advantage of the globalization of finance, in spite of the
     negative effect of the volatility of some capital flows;

         "8.   Stresses the need for the expansion of private capital flows
     and for broader access by all developing countries to those flows;

         "9.   Also stresses that a number of developing countries, among them
     most of the least developed countries, especially those of Africa, have
     not benefited from the globalization of finance and continue to be in
     great need of official development assistance;

         "10.  Further stresses that international economic cooperation has
     become an increasingly important aspect of official measures to reduce
     systemic risks in the financial sector;

         "11.  Recognizes, in this context, that the regular lending
     programmes of the multilateral institutions, certain new initiatives of
     the International Monetary Fund aiming at enhancing the confidence of
     the financial markets, and the operational activities of the United
     Nations system contribute to assisting developing countries in their
     adjustment and stabilization efforts conducive to their development
     process;

                                      II

         "12.  Notes that cooperation between the United Nations and the
     Bretton Woods institutions has been strengthened at the level of
     operational activities for development, but that only initial steps have
     been taken in the field of further promoting the policy analysis and
     assessment of development issues;

         "13.  Recognizes that further progress in a cooperative relationship
     between the relevant intergovernmental bodies of the United Nations and
     the Bretton Woods institutions, in particular the International Monetary
     Fund, is urgently needed to build upon the respective strengths of each
     institution, taking into account the comprehensive mandate of the United
     Nations in the field of development;

         "14.  Decides, with contributions from the Economic and Social
     Council, and from relevant intergovernmental bodies of the International
     Monetary Fund and the World Bank, to engage in the discussion of such
     issues as:

         "(a)  Proposals aimed at enhancing broader cooperation and, where
     appropriate, coordination of macroeconomic policies among interested
     countries, monetary and financial authorities and institutions, as a
     means of promoting a stable international economic environment conducive
     to sustained economic growth, particularly in developing countries;

         "(b)  The need to encourage private capital flows to all countries,
     in particular to developing countries, especially long-term capital
     flows, while reducing the risks of volatility;

         "(c)  The steps taken by the International Monetary Fund to promote a
     strong and central role for the Fund in the surveillance of all
     countries in a symmetrical manner;

         "(d)  Measures aimed at broadening and strengthening the
     participation of developing countries in the international economic
     decision-making process;

         "(e)  Actions to promote more transparency and openness, including
     increasing the participation of developing countries in the work of the
     International Monetary Fund and the World Bank;

         "15.  Requests the Secretary-General to report to the General
     Assembly at its fifty-second session on those discussions and to submit
     to it action-oriented proposals."

19.  At the 37th meeting, on 2 December, the Vice-Chairman of the Committee,
Mr. Kheirreddine Ramoul (Algeria), introduced a draft resolution entitled
"Global financial integration and strengthening collaboration between the
United Nations and the Bretton Woods institutions" (A/C.2/51/L.50), which he
submitted on the basis of informal consultations held on draft resolution
A/C.2/51/L.28.

20.  At the same meeting, the Committee adopted draft resolution
A/C.2/51/L.50 without a vote (see para. 38, draft resolution III).

21.  After the adoption of the draft resolution, a statement was made by the
representative of Brazil (see A/C.2/51/SR.37).

22.  In the light of the adoption of draft resolution A/C.2/51/L.50, draft
resolution A/C.2/51/L.28 was withdrawn by its sponsors.


                 D.  Draft resolution A/C.2/51/L.16 and Rev.1

23.  At the 31st meeting, on 8 November, the representative of Costa Rica, on
behalf of the States Members that are members of the Group of 77, China and
Colombia (on behalf of the States Members that are members of the Movement of
Non-Aligned Countries), introduced a draft resolution entitled "International
trade and development" (A/C.2/51/L.16), which read:

         "The General Assembly,

         "Recalling its resolutions 50/95 and 50/98, both of
     20 December 1995, as well as other relevant international agreements
     concerning trade, development and interrelated issues,

         "Emphasizing the importance of an open, rule-based, equitable,
     secure, non-discriminatory, transparent and predictable multilateral
     trading system,

         "Emphasizing also that a favourable and conducive international
     economic and financial environment and a positive investment climate are
     necessary for the economic growth of the world economy, including the
     creation of employment, in particular for the sustained economic growth
     and sustainable development of the developing countries, and emphasizing
     further that each country is responsible for its own economic policies
     for development,

         "Noting with satisfaction the highly successful outcome of the ninth
     session of the United Nations Conference on Trade and Development, held
     at Midrand, South Africa, from 27 April to 11 May 1996, and the spirit
     of genuine partnership and solidarity that emerged therefrom,

         "Expressing its deep gratitude to the Government and the people of
     South Africa for the hospitality extended to the participants in the
     United Nations Conference on Trade and Development at its ninth session,

         "Welcoming with appreciation the generous offer made by the
     Government and the people of Thailand to host the tenth session of the
     United Nations Conference on Trade and Development in the year 2000,

         "Expressing appreciation to the Government and the people of
     Singapore for hosting the inaugural Ministerial Conference of the World
     Trade Organization,

                                       I

         "1.   Endorses the outcome of the ninth session of the United Nations
     Conference on Trade and Development, which was held at Midrand, South
     Africa, in April and May 1996, in particular the commitment on 'A
     Partnership for Growth and Development', 9/ and expresses its political
     will and responsibility with respect to implementing the agreed
     commitments;

         "2.   Takes note of the report of the Trade and Development Board on
     its forty-third session; 10/ 

         "3.   Recognizes that 'A Partnership for Growth and Development'
     builds upon the various agreements and conferences that provide an
     overall policy framework for sustained economic growth and sustainable
     development to address the challenges of the 1990s, including the
     Cartagena Commitment; 11/

         "4.   Welcomes the fact that the United Nations Conference on Trade
     and Development, as part of the United Nations system and a contributor
     to its revitalization, has adopted far-reaching reforms, as embodied in
     the Midrand Declaration and 'A Partnership for Growth and Development',9 
     adopted by consensus at the ninth session of the Conference, which
     encompass its programme of work, its intergovernmental machinery and its
     secretariat, as well as the strengthening of its cooperation with other
     institutions, especially its complementarity with the World Trade
     Organization and its cooperation with the United Nations Industrial
     Development Organization and relevant regional organizations, thus
     adapting itself to new economic and institutional modalities created by
     the process of globalization, the conclusion of the Uruguay Round of
     multilateral trade negotiations agreements5 and the creation of the World
     Trade Organization;

         "5.   Also welcomes the importance attached by the United Nations
     Conference on Trade and Development at its ninth session to building a
     lasting partnership for development between non-governmental actors and
     the Conference and the initiative taken by the Secretary-General of the
     Conference to hold meetings with relevant actors to further elaborate
     concrete steps towards this end;

         "6.   Recognizes the role of the United Nations Conference on Trade
     and Development as the focal point within the United Nations for the
     integrated treatment of development and interrelated issues in the areas
     of trade, finance, technology, investment and sustainable development;

         "7.   Also recognizes that the United Nations Conference on Trade and
     Development, having a comparative advantage in tackling trade-related
     development issues, should continue to facilitate the integration of
     developing countries into the world economy, including by following
     developments in the international trading system, in particular their
     implications for developing countries, and identifying new opportunities
     and challenges arising from the implementation of the Uruguay Round
     agreements;

         "8.   Decides, within this context, to enable the United Nations
     Conference on Trade and Development to implement its programme of work
     with a focus on the issues of globalization and development,
     international trade in goods and services and commodity matters,
     investment, enterprise development and technology, services
     infrastructure for development and trade efficiency;

         "9.   Invites the President of the United Nations Conference on Trade
     and Development at its ninth session to consider convening a special
     high-level review meeting two years prior to the tenth session of the
     Conference;

                                      II

         "1.   Stresses the urgent need to continue trade liberalization,
     including liberalization through a substantial reduction of tariff and
     other barriers to trade, in particular non-tariff barriers, and the
     elimination of discriminatory and protectionist practices in
     international trade relations, and to improve access to the markets of
     all countries, in particular those of the developed countries, so as to
     generate sustained economic growth and sustainable development;

         "2.   Recognizes that the World Trade Organization provides the
     framework for an open, rule-based, equitable, secure, non-
     discriminatory, transparent and predictable multilateral trading system
     and stresses that all members of the World Trade Organization should
     implement their commitments in respect of the Uruguay Round agreements
     in a full, timely, faithful and continuous manner and that all
     provisions of the Final Act Embodying the Results of the Uruguay Round
     of Multilateral Trade Negotiations5 should be effectively applied, so as
     to maximize economic growth and the developmental benefits thereof for
     all, taking into account specific difficulties and interests of
     developing countries;

         "3.   Urges Governments and concerned organizations to implement
     fully and expeditiously the Marrakesh Ministerial Decision on Measures
     in Favour of the Least Developed Countries, as well as to effectively
     apply the Ministerial Decision on Measures Concerning the Possible
     Negative Effects of the Reform Programme on Least Developed and Net
     Food-importing Countries, as well as the recommendations adopted at the
     Mid-term Global Review of the Implementation of the Programme of Action
     for the Least Developed Countries for the 1990s and at the ninth session
     of the United Nations Conference on Trade and Development as they relate
     to trade and trade-related issues of the least developed countries;

         "4.   Emphasizes the importance of the strengthening of, and the
     attaining of greater universality by, the international trading system
     and welcomes the process directed towards accession to the World Trade
     Organization of countries that are not members of the General Agreement
     on Tariffs and Trade, and emphasizes the necessity for providing
     assistance to non-World Trade Organization members so as to facilitate
     their efforts with respect to accession in an expeditious manner, and
     thereby contribute to their rapid and full integration into the
     multilateral trading system;

         "5.   Also emphasizes the importance of the inaugural Ministerial
     Conference of the World Trade Organization, to be held in Singapore, in
     regard to reviewing the implementation of the Uruguay Round agreements
     and its built-in agenda with a view to helping set the future direction
     of a rule-based multilateral trading system;

         "6.   Further emphasizes that the dispute settlement mechanism of the
     World Trade Organization is a key element as regards the integrity and
     credibility of the multilateral trading system and the full realization
     of the benefits anticipated from the conclusion of the Uruguay Round;

         "7.   Deplores any attempt to bypass or undermine multilaterally
     agreed procedures on the conduct of international trading, by resorting
     to unilateral actions, or to use environmental and social concerns for
     protectionist purposes;

         "8.   Underscores that the pursuit of the built-in agenda contained
     in various Uruguay Round agreements, as well as the international
     community's handling of issues affecting the conduct of international
     trade relations, should be carried out in a balanced manner, which takes
     into account the concerns of developing countries;

         "9.   Emphasizes the need for a balanced and integrated approach to
     environment, trade and development issues, through the examining of
     trade and environmental issues from a developmental perspective which
     should be mutually supportive, while stressing that environmental
     policies and measures with a potential trade impact should not be used
     for protectionist purposes and that positive measures such as improved
     market access, capacity-building, improved access to finance and access
     to transfer of technology are effective instruments in regard to
     achieving the objective of sustainable development and in meeting the
     multilaterally agreed objectives of multilateral environmental
     agreements;

                                      III

         "1.   Recognizes the important progress made in understanding the
     relationship between trade and environment in the Committee on Trade and
     Environment of the World Trade Organization, as well as in the United
     Nations Conference on Trade and Development, and in the Commission on
     Sustainable Development, including the recommendations made at its
     fourth session, and the need to maintain the momentum generated through
     these deliberations, and requests the Conference, within this context,
     to examine outstanding issues with a view to recommending future work on
     trade and environment;

         "2.   Requests the United Nations Conference on Trade and Development
     to continue to perform its special role in the field of trade and
     environment, as reaffirmed at the ninth session of the Conference, in
     particular within the context of the forthcoming special session of the
     General Assembly for the purpose of an overall review and appraisal of
     the implementation of Agenda 21 12/ and its preparatory process, and
     stresses the need for the Conference to continue to promote cooperation
     among the many international organizations and bodies interfacing in the
     trade and environment debate, including the Commission on Sustainable
     Development and the United Nations Environment Programme, as well as the
     World Trade Organization;

         "3.   Also requests the United Nations Conference on Trade and
     Development to identify and analyse the implications for development of
     issues relevant to a possible multilateral framework on investment,
     taking into account the interests of developing countries;

         "4.   Reaffirms the need to implement as a matter of priority the
     United Nations New Agenda for the Development of Africa in the 1990s,
     13/ taking into account the assessment and recommendations adopted at
     the Mid-term Global Review of the Implementation of the Programme of
     Action for the Least Developed Countries for the 1990s, especially those
     related to trade and development;

         "5.   Also reaffirms the need to give priority to the problems facing
     the least developed countries and, in particular, special attention to
     help enable the least developed countries to maximize their potential
     opportunities and minimize possible risks arising from the Uruguay Round
     agreements;

         "6.   Stresses the need to give special attention, within the context
     of international cooperation on trade and development issues, to the
     implementation of the many international development commitments geared
     to meeting the special development needs and problems of small island
     developing States and of landlocked developing States, as well as to
     recognize that the transit developing countries that provide transit
     services to landlocked developing countries need adequate assistance in
     order to maintain and improve their transit infrastructure;

         "7.   Strongly invites preference-giving countries to continue to
     improve and renew their Generalized System of Preferences schemes in
     keeping with the post-Uruguay Round trading system and with the
     objective of integrating developing countries, especially least
     developed countries, into the international trading system, while
     avoiding linking eligibility to non-trade considerations and thereby
     detracting from the original principles of Generalized System of
     Preferences schemes;

         "8.   Stresses that Governments, as well as international
     organizations, should extend technical assistance to developing
     countries to enable them to participate more effectively in the
     international trading system, including assistance in their service
     sectors to help ensure that they reap the maximum possible benefits from
     the liberalization of trade in services;

         "9.   Also stresses that the forthcoming South-South conference on
     finance, trade and investment, to be held in San Jose', Costa Rica, will
     provide an opportunity for developing countries to advance initiatives
     related to 'A Partnership for Growth and Development', and invites the
     international community to provide support to the conference."

24.  At the 37th meeting, on 2 December, the Vice-Chairman of the Committee,
Mr. Kheirreddine Ramoul (Algeria), informed the Committee of the results of
the informal consultations held on the draft resolution, and drew the
Committee's attention to a revised draft resolution (A/C.2/51/L.16/Rev.1)
submitted by the sponsors of draft resolution A/C.2/51/L.16, joined by
Belarus, Japan, Mexico, Norway, the Russian Federation and the United States
of America.

25.  The Secretary of the Committee read out a statement on the programme
budget implications of draft resolution A/C.2/51/L.16/Rev.1 (see
A/C.2/51/SR.37).
 
26.  At the same meeting, the Committee adopted revised draft resolution
A/C.2/51/L.16/Rev.1 without a vote (see para. 38, draft resolution IV).

27.  After the adoption of the draft resolution, statements were made by the
representatives of Brazil and South Africa (see A/C.2/51/SR.37).


                        E.  Draft resolution A/C.2/51/L.25

28.  At the 35th meeting, on 18 November, the representative of Kazakstan, on
behalf of Afghanistan, Armenia, Azerbaijan, Belarus, Georgia, the Islamic
Republic of Iran, Kazakstan, Kyrgyzstan, Tajikistan, Turkey and Uzbekistan,
introduced a draft resolution entitled "Transit environment in the landlocked
States in Central Asia and their transit developing neighbours"
(A/C.2/51/L.25).

29.  At the 36th meeting, on 25 November, the Vice-Chairman of the Committee,
Mr. Kheirreddine Ramoul (Algeria), informed the Committee of the results of
the informal consultations held on the draft resolution, and orally revised it
as follows:

     (a)  In the third preambular paragraph, the words "development efforts
of these countries" were replaced with the words "development efforts of newly
independent and developing landlocked States";

     (b)  In the fifth preambular paragraph, the words "Proposals for the
development of a global framework for transit transport cooperation between
landlocked and transit developing countries and the donor community" were
replaced with the words "Global framework for transit transport cooperation
between landlocked and transit developing countries and the donor community",
and the related footnote, which had read "UNCTAD/LLDC/SYMP/5", was replaced
with "TD/B/42(1)11".  
     
30.  At the same meeting, the Committee adopted draft resolution
A/C.2/51/L.25, as orally revised, without a vote (see para. 38, draft
resolution V).

31.  After the adoption of the draft resolution, a statement was made by the
representative of the United States of America (see A/C.2/51/SR.36).


                 F.  Draft resolutions A/C.2/51/L.14 and L.49

32.  At the 30th meeting, on 7 November, the representative of Costa Rica, on
behalf of the States Members that are members of the Group of 77 and China,
introduced a draft resolution entitled "Commodities" (A/C.2/51/L.14), which
read:

         "The General Assembly,

         "Recalling its resolutions 45/200 of 21 December 1990, 47/185 of
     22 December 1992, 48/214 of 23 December 1993 and 49/104 of
     19 December 1994, and stressing the urgent need to ensure their full
     implementation,

         "Recognizing that in many developing countries, in particular
     African countries and least developed countries, the commodity sector
     remains the principal source of export revenues and of the creation of
     employment, income and savings, and the driving force of investments and
     the reactivation of growth and development,

         "Concerned about the constant price fluctuations of commodities, and
     also recognizing the need for a better functioning of commodity markets
     and the necessity of stable and more predictable commodity prices,
     including searching for long-term solutions,

         "Mindful of the need for developing countries, especially African
     countries and least developed countries, to diversify their economies,
     in particular the commodity sector, with a view to modernizing their
     production, distribution and marketing systems, enhancing productivity,
     and stabilizing and increasing their export earnings,

         "Also concerned about the difficulties experienced by the developing
     countries in financing and implementing viable diversification
     programmes,

         "1.   Welcomes the outcome of the ninth session of the United Nations
     Conference on Trade and Development, including the Midrand Declaration
     and 'A Partnership for Growth and Development',9 related to the issues of
     commodities;

         "2.   Recognizes the fundamental responsibility of the developing
     countries that are heavily dependent on primary commodities for
     continuing to promote a domestic policy and an institutional environment
     that encourage diversification and enhance competitiveness;

         "3.   Notes the need expressed by developing countries, in particular
     the commodity-dependent developing countries, for remunerative, stable
     and more predictable commodity prices, in the face of persistent
     instability in the prices of some primary commodities and the general
     deterioration in the terms of trade;

         "4.   Emphasizes the urgent need to create a more favourable
     international environment for supportive international policies to
     improve the functioning of commodity markets through efficient and
     transparent price formation mechanisms, including commodity exchanges,
     and through the use of commodity price risk management instruments;

         "5.   Urges developed countries to continue to support the commodity
     diversification efforts of developing countries, especially African
     countries, in a spirit of common purpose and efficiency, inter alia, by
     providing technical and financial assistance for the preparatory phase
     of their commodity diversification programmes;

         "6.   Reiterates the importance of maximizing the contribution of the
     commodity sector to economic growth and sustainable development in
     commodity-dependent developing countries, and in this respect stresses,
     inter alia, that:

         "(a)  Trade-distorting policies and practices, including tariff and
     non-tariff escalation and obstacles to competition in the markets of
     developed countries, have a negative effect on the ability of developing
     countries to diversify their exports and to undertake the requisite
     restructuring of their commodity sector;

         "(b)  Expansion of South-South trade in commodities offers
     opportunities for intersectoral linkages within and among exporting
     countries;

         "(c)  In line with Agenda 2112 and the Rio Declaration on Environment
     and Development, 14/ trade and environmental policies are mutually
     supportive to achieving sustainable development.  In that regard,
     environmental policies and measures with potential trade impact should
     not be used for protectionist purposes;

         "(d)  The issues related to commodities in the context of sustainable
     development should be fully taken into account by all overall review and
     appraisal machinery of the implementation of Agenda 21 adopted by the
     United Nations Conference on Environment and Development;

         "(e)  There is a need to promote research and development, to provide
     infrastructure and support services, and to encourage investment,
     including joint ventures in developing countries engaged in the
     commodity and commodity-processing sectors;

         "7.   Emphasizes the importance for developing countries to process a
     significant part of their commodities, and in that regard stresses the
     need for new market opportunities for their processed and semi-processed
     commodities;

         "8.   Encourages the Common Fund for Commodities, in cooperation with
     the International Trade Centre, the United Nations Conference on Trade
     and Development and other relevant bodies, to explore effective ways and
     means of using the resources of the First Account of the Common Fund to
     help the commodity-dependent countries, especially the least developed
     countries, to diversify their commodity sector projects and to promote
     their commodity market development;

         "9.   Urges producers and consumers of individual commodities to
     intensify their efforts to reinforce mutual cooperation and assistance;

         "10.  Requests the Food and Agriculture Organization of the United
     Nations to continue to provide technical support to the basic food
     sector of developing countries, in particular net food importing
     countries, inter alia, in meeting their commitments under the Uruguay
     Round;

         "11.  Welcomes the technical cooperation activities that will be
     undertaken by the United Nations Conference on Trade and Development, in
     collaboration with the World Trade Organization and other concerned
     international organizations in the field of international commodity
     trade;

         "12.  Requests the Secretary-General of the United Nations Conference
     on Trade and Development to report on world commodity trends and
     prospects, with particular emphasis on commodity-dependent developing
     countries in the light of the outcome of the ninth session of the United
     Nations Conference on Trade and Development;

         "13.  Decides to include the question of commodities in the agenda of
     its fifty-second session."

33.  At the 37th meeting, on 2 December, the Vice-Chairman of the Committee,
Mr. Kheirreddine Ramoul (Algeria), introduced a draft resolution entitled
"Commodities" (A/C.2/51/L.49), which he submitted on the basis of informal
consultations held on draft resolution A/C.2/51/L.14.
 
34.  At the same meeting, the representative of Co^te d'Ivoire orally revised
draft resolution A/C.2/51/L.49 as follows:

     (a)  In the second preambular paragraph, the word "contributor" was
inserted before the words "to growth and development";

     (b)  In operative paragraph 4, the word "Emphasizes" was replaced with
the word "Expresses";

     (c)  In operative paragraph 6 (c), the words "aim to ensure" were
replaced with the words "have as their objective to ensure".

35.  Also at the same meeting, the Committee adopted draft resolution
A/C.2/51/L.49, as orally revised, without a vote (see para. 38, draft
resolution VI).

36.  In the light of the adoption of draft resolution A/C.2/51/L.49, draft
resolution A/C.2/51/L.14 was withdrawn by its sponsors.


                              G.  Draft decision

37.  At the 37th meeting, on 2 December, on the proposal of the Chairman, the
Committee decided to recommend to the General Assembly that it take note of
documents before it under the item (see para. 39).


                   III.  RECOMMENDATIONS OF THE SECOND COMMITTEE

38.  The Second Committee recommends to the General Assembly the adoption of
the following draft resolutions:


                              DRAFT RESOLUTION I

        Enhancing international cooperation towards a durable solution
             to the external debt problem of developing countries

     The General Assembly,

     Recalling its resolutions 48/165 of 21 December 1993 and 50/92 of
20 December 1995 and the relevant provisions of the report of the Ad Hoc
Committee of the Whole of the General Assembly for the Mid-term Review of the
Implementation of the United Nations New Agenda for the Development of Africa
in the 1990s, 15/ as well as the results, as agreed, of all major United
Nations conferences and summit meetings held since the beginning of the 1990s,

     Reaffirming the urgent need for effective, equitable,
development-oriented and durable solutions to the external debt and
debt-servicing problems of developing countries, and to help them exit from
the rescheduling process, 

     Noting the improvement in the debt situation of a number of developing
countries since the second half of the 1980s and the contribution that the
evolving debt strategy has made to this improvement, noting with appreciation
the debt-relief measures taken by creditor countries both within the framework
of the Paris Club and through their cancellation and equivalent relief of
bilateral official debt and welcoming the even more favourable debt-relief
measures taken by the Paris Club on the basis of the Naples terms of
December 1994,

     Stressing the need for a full and swift implementation of those
initiatives, which will further assist developing countries, in particular the
poorest and heavily indebted countries, especially in Africa, in their efforts
to improve their debt situation in view of their continued very high level of
total debt stock and servicing burdens,

     Emphasizing the importance for debtor countries of continuing to pursue
and intensify their efforts with respect to economic reforms, stabilization
and structural adjustment programmes, in order to raise savings and
investments, reduce inflation and improve economic efficiency, taking into
account the need to address the social aspects of development, including the
eradication of poverty, and their individual characteristics, as well as the
vulnerability of the poorer strata of their populations,

     Noting with concern the continuing debt and debt-servicing problems of
indebted developing countries as constituting an element adversely affecting
their development efforts and economic growth, and stressing the importance of
alleviating the onerous debt and debt-service burdens connected with various
types of debt of many developing countries, on the basis of an effective,
equitable, development-oriented and durable approach and, where appropriate,
addressing the full stock of debt of the poorest and most indebted developing
countries as a matter of priority,

     Noting that those developing countries that have continued, at great
cost to themselves, to meet their international debt and debt-service
obligations in a timely fashion have done so despite serious external and
domestic financial constraints,

     Expressing its concern that debt-relief measures taken so far have not
yet fully provided effective, equitable, development-oriented and durable
solutions to the outstanding debt and debt-servicing problems of a large
number of developing countries, in particular the poorest and heavily indebted
countries,

     Noting the situation in some creditor countries with economies in
transition in addressing the external debt and debt-servicing problems of
developing countries,

     Stressing the need for continuing global economic growth and the
necessity for a continuing supportive international economic environment with
regard to, inter alia, terms of trade, commodity prices, improved market
access, trade practices, access to technology, exchange rates and
international interest rates, and noting the continued need for resources for
sustained economic growth and sustainable development of the developing
countries,

     1.  Takes note of the report of the Secretary-General on the developing
country debt situation as at mid-1996; 16/

     2.  Recognizes that effective, equitable, development-oriented and
durable solutions to the external debt and debt-servicing problems of
developing countries can contribute substantially to the strengthening of the
global economy and to the efforts of developing countries to achieve sustained
economic growth and sustainable development; 

     3.  Notes that further progress, including swift implementation of
innovative approaches and concrete measures, is essential for contributing to
effective, equitable, development-oriented and durable solutions to the
external debt and debt-servicing problems of developing countries,
particularly the poorest and heavily indebted countries;

     4.  Stresses the importance for developing countries of continuing their
efforts to promote a favourable environment for attracting foreign investment,
thereby promoting economic growth and sustainable development so as to favour
their exit from debt and debt-servicing problems, and stresses the need for
the international community to promote a conducive external economic
environment through, inter alia, improved market access, stabilization of
exchange rates, effective stewardship of international interest rates,
increased resource flows, access to international financial markets, flow of
financial resources, and improved access to technology for the developing
countries;

     5.  Stresses that the evolving debt strategy must be accompanied by a
favourable and supportive international economic environment, including the
full  implementation of the results of the Uruguay Round of multilateral trade
negotiations, and the Marrakesh ministerial decisions in favour of the least
developed countries and the net food-importing developing countries;

     6.  Welcomes the Heavily Indebted Poor Countries Debt Initiative
endorsed by the Interim Committee of the International Monetary Fund and the
Development Committee of the World Bank and the International Monetary Fund,
designed to enable eligible heavily indebted poor countries to achieve a
sustainable debt situation through coordinated action by all creditors on the
basis of adjustment efforts by the debtor countries;

     7.  Recognizes that the implementation of the Initiative requires
additional financial resources from both bilateral and multilateral creditors
without affecting the support required for development activities of
developing countries, welcomes the commitment made to provide additional
resources for the Initiative, and invites bilateral donors to contribute to
the Trust Fund for the implementation of the Initiative;

     8.  Stresses the urgent need for the developed countries to give the
Initiative the support it both needs and deserves and to implement it flexibly
to ensure that the performance already achieved is taken into account in
determining the duration of adjustment required to reach, with the assistance
of all creditors, an exit from debt rescheduling;

     9.  Stresses the importance of implementing the Initiative's eligibility
criteria flexibly, in a transparent manner, and with the full involvement of
the debtor country, and further stresses the importance of continuously
evaluating and actively monitoring the implications of the existing terms of
the eligibility criteria in the implementation of the Initiative, so as to
ensure sufficient coverage of heavily indebted poor countries;

     10. Underlines the importance of the transparency and involvement of
debtor countries in any review and analysis that will be conducted during the
adjustment period; 

     11. Welcomes the decision taken by the Paris Club to go beyond the
Naples terms to provide debt reduction, including some debt stock forgiveness
for the poorest and most heavily indebted countries, stresses the need for the
swift implementation of that decision, and urges all other bilateral creditors
to make comparable contributions in the context of coordinated efforts by all
countries; 
     12. Recognizes the efforts of indebted developing countries in regard to
fulfilling their commitments on debt servicing despite the incurring of a high
social cost and, in this regard, encourages private creditors and, in
particular, commercial banks to continue their initiatives and efforts to
address the commercial debt problems of middle-income developing countries; 

     13. Invites creditor countries, private banks and multilateral financial
institutions, within their prerogatives, to continue the initiatives and
efforts to address the commercial debt problems of the least developed
countries and the requests for continued mobilization of resources through the
Debt-reduction Facility of the International Development Association in order
to help eligible least developed countries reduce their commercial debt;

     14. Invites the International Monetary Fund to continue devising
concrete measures and action to address the problems faced by indebted
developing countries, including the provision of bilateral contributions and,
if the need arises, to consider optimizing its reserves management in order to
facilitate the financing of the Enhanced Structural Adjustment Facility;
     
     15. Reaffirms the Mid-term Global Review of Progress towards the
Implementation of the Programme of Action for the Least Developed Countries
for the 1990s, 17/ in particular the appropriate actions in favour of those
countries concerning their official bilateral, commercial and multilateral
debt;

     16. Notes with concern the continuing burden of debt and debt-service
obligations of middle-income countries, including in particular those in
Africa, and encourages creditors, including multilateral financial
institutions and commercial banks, to continue to address their obligations
effectively;

     17. Stresses the importance of continued concessional Enhanced
Structural Adjustment Facility lending operations for low-income developing
countries; 

     18. Also stresses the need for, in addition to debt-relief measures that
include debt and debt-service reduction, new financial flows to debtor
developing countries from all sources, and urges creditor countries and
multilateral financial institutions to continue to extend concessional
financial assistance, particularly to the least developed countries, in order
to support the implementation of economic reforms, stabilization and
structural adjustment programmes and the eradication of poverty by the
developing countries so as to enable them to extricate themselves from the
debt overhang and attract new investment and to assist them in achieving
sustained economic growth and sustainable development;

     19. Further stresses the urgent need to continue to provide social
safety nets to vulnerable groups most adversely affected by the implementation
of economic reform programmes in the debtor countries, in particular
low-income groups;

     20. Calls upon the international community, including the United Nations
system, and invites the Bretton Woods institutions, as well as the private
sector, to take appropriate measures and action for the implementation of the
commitments, agreements and decisions of the major United Nations conferences
and summits organized since the beginning of the 1990s on development related
to the question of external debt;

     21. Requests the Secretary-General, in close cooperation with the
Bretton Woods institutions and other relevant bodies of the United Nations
system, to closely follow the Heavily Indebted Poor Countries Debt Initiative
and to report to the General Assembly at its fifty-second session on the
implementation of the Initiative and of the present resolution. 


                              DRAFT RESOLUTION II

            Net flows and transfer of resources between developing
                            and developed countries

     The General Assembly,

     Reaffirming its resolutions 47/178 of 22 December 1992 and 49/93 of
19 December 1994,

     Taking note of the World Economic and Social Survey, 1996, 18/ in
particular chapter III thereof, entitled "The international economy", and the
report of the Secretary-General on the net transfer of resources between
developing and developed countries, 19/

     Recognizing that, while developing countries have primary responsibility
for their own development, there is continuing need for the international
community to give strong support to their efforts to solve their economic and
social problems through, inter alia, the promotion of a favourable
international economic environment,

     Noting that for many developing countries, especially those in Africa
and the least developed countries, official development assistance remains an
important source of financial resources to support their development efforts,

     Recognizing the increasing role of private investment and that the
completion of the Uruguay Round of multilateral trade negotiations was a major
step by the international community towards the expansion of the rule-based
international trading system, advancing liberalization in international trade
and creating a more secure trading environment,

     Noting that capital flows, in particular private capital flows, to
developing countries have been increasing strongly but that not all countries
have benefited from such flows and short-term capital movements can be
unpredictable,

     Noting also that the future course of net transfer of resources to
developing countries depends on a growth-oriented and supportive international
economic environment and on sound domestic economic policies,

     Stressing the unpredictable character of short-term private capital
movements, which are particularly subject to interest-rate variations and
other possible fluctuations in the domestic and international economic
environment,

     Noting that in the 1990s the net transfer of resources from the Bretton
Woods institutions to developing countries has been negative in real terms,
although it has been positive to countries in Africa and to certain countries
in Asia, and noting also that the net financial transfer from regional banks
to developing countries, taken together, has been generally positive in the
1990s, although it became slightly negative in 1994 and 1995,

     Expressing its concern at the recent decline in the overall level of
official development assistance,

     Bearing in mind that all countries, particularly the major
industrialized countries, which have significant weight in influencing world
economic growth and the international economic environment, should continue
their efforts to promote sustained economic growth and sustainable
development, to narrow imbalances, and to cooperate with the developing
countries so as to enhance their ability to address and alleviate their major
problems in the areas of money, finance, resource flows, trade, commodities
and external indebtedness,

     1.  Stresses the need to increase efforts to ensure the flow of
substantial resources to developing countries, through, inter alia, an
expansion of multilateral credits, the promotion of foreign direct investment
and an increase in concessional and non-debt resources;

     2.  Also stresses that private capital flows are an important external
source of financing for sustainable development and that attracting such
investment requires, inter alia, sound fiscal and monetary policies,
accountable governmental institutions, and transparent legal and regulatory
regimes;

     3.  Reaffirms the pressing need of developing countries for official
development assistance, especially those in Africa and the least developed
countries, and urges countries to strive to fulfil, consistent with
commitments in international agreements, the agreed target of 0.7 per cent of
the gross national product of developed countries for official development
assistance to the developing countries, and the target, where agreed, of
0.15 per cent of the gross national product of the developed countries for
official development assistance to the least developed countries as soon as
possible;

     4.  Stresses the need to mobilize public support for development
cooperation, inter alia, through a strategy based on partnership between
developed and developing countries which incorporates, as appropriate,
mutually agreed goals for development;

     5.  Also stresses the importance of the role of the International
Development Association as a highly concessional lending arm of the World Bank
for promoting development in eligible development countries, and urges donors
fully to honour their commitment thereto, in particular to the eleventh
replenishment of the Association, and to secure its adequate future funding;

     6.  Appeals to all countries to continue to cooperate and work together
on issues relating to the Enhanced Structural Adjustment Facility, with a view
to arriving at a self-sustained facility, including the provision of bilateral
contributions; if the need arises, the International Monetary Fund should
consider optimizing its reserves management in order to facilitate financing
of the Facility;

     7.  Urges all international financial institutions and donor countries,
as appropriate, to continue their own efforts to improve the quality and
effectiveness of their lending, inter alia, through thorough assessment of the
contributions to sustainable development of projects financed, effective
monitoring and evaluation, and increased concessionality, where appropriate;

     8.  Requests the Secretary-General to continue to monitor developments
in the net flows and transfer of resources between developing and developed
countries and to utilize all relevant reports, such as those provided by the
United Nations Conference on Trade and Development, the World Bank, the
International Monetary Fund, and the regional development banks, and to report
thereon in the World Economic and Social Survey, 1997, and also requests the
Secretary-General to report, in close cooperation with the United Nations
Conference on Trade and Development and the Bretton Woods institutions, to the
General Assembly at its fifty-third session on the implementation of the
present resolution.


                             DRAFT RESOLUTION III

         Global financial integration and strengthening collaboration 
         between the United Nations and the Bretton Woods institutions

     The General Assembly,

     Reaffirming its resolution 50/91 of 20 December 1995, entitled "Global
financial integration:  challenges and opportunities", and Economic and Social
Council resolution 1996/43 of 26 July 1996 on strengthening collaboration
between the United Nations development system and the Bretton Woods
institutions,

     Expressing concern that a number of developing countries have become
more vulnerable, in the course of liberalizing their external economic and
financial regimes, to the volatile fluctuations of private capital flows in
international financial markets, and stressing the importance at the national
level in the countries concerned of a favourable climate for private financial
flows, sound macroeconomic policies and appropriate functioning of markets,

     Welcoming the initiative the Bretton Woods institutions have taken to
address the question of the volatility of capital flows,

     Recalling its resolution 50/227 of 24 May 1996, annex I, section VIII,
on the relationship between the United Nations and the international finance
and trade institutions, as well as other relevant resolutions,

     1.  Recognizes that technological advances have reduced the costs and
increased the speed of international financial transactions and that, as
policy liberalization has facilitated international capital flows, financial
institutions have increasingly added foreign assets to their portfolios,
paving the way towards the phenomenon of global financial integration;

     2.  Stresses that global financial integration presents new challenges
and opportunities for the international community and that it should
constitute a very important element of the dialogue between the United Nations
system and the Bretton Woods institutions;

     3.  Notes that the globalization of financial markets can generate new
risks of instability, including interest rate and exchange rate fluctuations
and volatile short-term capital flows, which require all countries to pursue
sound economic policies and to recognize the external economic impact of their
domestic policies;

     4.  Stresses that sound domestic macroeconomic policies of each country
in regard to promoting macroeconomic stability and growth are primary elements
for determining private capital flows, and that the coordination of
macroeconomic policies, where appropriate, and a favourable international
economic environment play an important role in reinforcing their
effectiveness;

     5.  Also stresses that implementation of sound domestic monetary, fiscal
and structural policies over the medium term, including ensuring sound banking
systems, is required to promote financial and exchange rate stability;

     6.  Further stresses that Governments and international financial
institutions have a contribution to make to reducing the risks of volatility
of short-term capital flows and to promoting stability in domestic financial
markets, within their respective competences;

     7.  Recognizes the progress made in improving risk management and
transparency in international financial markets, such as the International
Monetary Fund's improved surveillance capacities, standards for the provision
of economic and financial information to markets and the creation of an
emergency financing mechanism;

     8.  Also recognizes the progress made in establishing the new
arrangements to borrow, which would effectively double the resources currently
available to the International Monetary Fund under the General Arrangements to
Borrow and improve the Fund's ability to assist members in circumstances that
could have systemic implications;

     9.  Recalls that, in the context of global financial integration,
further efforts have to be made, at both the national and international
levels, to strengthen international economic cooperation;

     10. Recognizes that a number of developing countries have been able to
take advantage of the globalization of finance, and notes the need for the
expansion of private capital flows and for broader access by all developing
countries to those flows, and therefore the need for the international
community to assist low-income countries, especially those in Africa, in their
efforts to create the enabling environment necessary to attract such flows;

     11. Notes that a number of developing countries, among them most of the
least developed countries, especially those of Africa, have not benefited from
the globalization of finance and continue to be in great need of official
development assistance;

     12. Recognizes, in this context, that the regular lending programmes of
the multilateral institutions, recent initiatives aiming at enhancing the
confidence of the financial markets, and the operational activities of the
United Nations system, inter alia, in promoting capacity-building for sound
financial management, contribute to assisting recipient countries,
particularly developing countries, in such adjustment and stabilization
efforts as are conducive to their development process;

     13. Welcomes Economic and Social Council resolution 1996/43 on
strengthening collaboration between the United Nations development system and
the Bretton Woods institutions, and calls for its full implementation;

     14. Notes that cooperation between the United Nations and the Bretton
Woods institutions continues to be strengthened at the level of operational
activities for development;

     15. Considers that the strengthening of collaboration between the United
Nations and the Bretton Woods institutions requires an integrated approach,
encompassing a closer policy dialogue at the intergovernmental level on
relevant areas of international development policy issues, taking into account
their respective competences;

     16. Stresses the need for encouragement of private flows to all
countries, in particular to developing countries, while reducing the risks of
volatility;

     17. Emphasizes the need to explore ways to broaden appropriate enhanced
cooperation and, where appropriate, coordination of macroeconomic policy among
interested countries, monetary and financial authorities and institutions, so
as to enhance preventive consultation arrangements between such institutions
as a means of promoting a stable international financial environment conducive
to economic growth, particularly of developing countries, taking into account
the needs of developing countries as well as situations that may have a
significant impact upon the international financial system;

     18. Reiterates the need for broadening and strengthening the
participation of developing countries in the international economic decision-
making process;

     19. Welcomes the steps taken by the International Monetary Fund and
recognizes the need for a stronger and central role for the Fund in
surveillance of all countries, in a symmetrical manner;

     20. Reaffirms the objective of promoting greater transparency and
openness, including increasing participation of developing countries in the
work of the International Monetary Fund, this objective also involving, among
other elements, the regular and timely provision of economic and financial
data by all Fund members;

     21. Welcomes the decision of the Economic and Social Council that the
theme of its high-level segment in 1997 will be:  "Fostering an enabling
environment for development - financial flows, including capital flows;
investment; trade";

     22. Requests the Secretary-General to report to the General Assembly, at
its fifty-second session, in cooperation with the Bretton Woods institutions
and the United Nations Conference on Trade and Development, on the
implementation of the present resolution.


                              DRAFT RESOLUTION IV

                      International trade and development

     The General Assembly,

     Recalling its resolutions 50/95 and 50/98, both of 20 December 1995, as
well as relevant international agreements concerning trade, economic growth,
development and interrelated issues,

     Emphasizing the importance of an open, rule-based, equitable, secure,
non-discriminatory, transparent and predictable multilateral trading system,

     Emphasizing also that a favourable and conducive international economic
and financial environment and a positive investment climate are necessary for
the economic growth of the world economy, including the creation of
employment, in particular for the growth and development of the developing
countries, and emphasizing further that each country is responsible for its
own economic policies for sustainable development,

     Noting with satisfaction the highly successful outcome of the ninth
session of the United Nations Conference on Trade and Development, held at
Midrand, South Africa, from 27 April to 11 May 1996, and the strengthened
spirit of genuine partnership and solidarity that emerged therefrom,

     Expressing its deep gratitude to the Government and the people of South
Africa for the hospitality extended to the participants in the ninth session
of the United Nations Conference on Trade and Development,

     Welcoming with appreciation the generous offer made by the Government
and the people of Thailand to host the tenth session of the United Nations
Conference on Trade and Development in the year 2000,

     Expressing appreciation to the Government and the people of Singapore
for hosting the inaugural Ministerial Conference of the World Trade
Organization,

                                       I

     1.  Endorses the outcome of the ninth session of the United Nations
Conference on Trade and Development, which was held at Midrand, South Africa,
in April and May 1996, in particular the document entitled "A Partnership for
Growth and Development", 20/ which builds upon various related agreements
and conferences, and expresses its political will and responsibility with
respect to implementing the agreed commitments;

     2.  Takes note of the report of the Trade and Development Board on its
forty-third session; 21/

     3.  Welcomes the fact that the United Nations Conference on Trade and
Development, as part of the United Nations system and a contributor to its
revitalization, has adopted far-reaching reforms, as embodied in the Midrand
Declaration and the document entitled "A Partnership for Growth and
Development",20 adopted by consensus at the ninth session of the Conference,
which encompass its programme of work, its intergovernmental machinery and the
reform of its secretariat, including its complementarity with the World Trade
Organization, inter alia, by making its analysis of trade and development
available to the World Trade Organization, and its cooperation with the United
Nations Industrial Development Organization and relevant organizations, thus
adapting itself to new economic and institutional modalities created by the
process of globalization, the conclusion of the Uruguay Round of multilateral
trade negotiations agreements 22/ and the creation of the World Trade
Organization;

     4.  Also welcomes the importance attached by the United Nations
Conference on Trade and Development at its ninth session to building a lasting
partnership for development between non-governmental actors and the Conference
and the initiative taken by the Secretary-General of the Conference to hold
meetings with relevant actors;

     5.  Recognizes the role of the United Nations Conference on Trade and
Development as the focal point within the United Nations for the integrated
treatment of development and interrelated issues in the areas of trade,
finance, technology, investment and sustainable development;

     6.  Also recognizes that the United Nations Conference on Trade and
Development, having a comparative advantage in tackling trade-related
development issues, should continue to facilitate the integration of
developing countries and countries with economies in transition into the
international trading system, in a complementary manner with the World Trade
Organization, and to promote development through trade and investment in
cooperation and coordination with the International Trade Centre, relevant
institutions of the United Nations system and other international
organizations;

     7.  Invites, in this context, the United Nations Conference on Trade and
Development to continue, inter alia, to follow developments in the
international trading system, in particular their implications for developing
countries, and to identify new opportunities arising from the implementation
of the Uruguay Round agreements;

     8.  Decides, in this context, that the United Nations Conference on
Trade and Development should implement its programme of work with a focus on
the issues of globalization and development, international trade in goods and
services and commodity matters, investment, enterprise development and
technology, services infrastructure for development and trade efficiency;

     9.  Invites the President of the United Nations Conference on Trade and
Development at its ninth session to consider convening a special high-level
review meeting two years prior to the tenth session of the Conference;

                                      II

     10. Stresses the urgent need to continue trade liberalization in
developed and developing countries, including liberalization through a
substantial reduction of tariff and other barriers to trade, in particular
non-tariff barriers, and the elimination of discriminatory and protectionist
practices in international trade relations, which will have the effect of
improving access for the exports of developing countries, enhancing the
competitiveness of their domestic industries, and facilitating structural
adjustment among developed economies;

     11. Also stresses the need for the full integration of economies in
transition, as well as other countries, into the world economy, in particular
through improved market access for their exports in accordance with the
multilateral trading agreements, and recognizes in this respect the importance
of open regional economic integration of interested economies in transition
among themselves as well as with developed and/or developing countries in
creating new possibilities for expanding trade and investment;

     12. Recognizes that the World Trade Organization provides the framework
for an open, rule-based, equitable, secure, non-discriminatory, transparent
and predictable multilateral trading system and stresses that all members of
the World Trade Organization should implement their commitments in respect of
the Uruguay Round agreements in a full, timely, faithful and continuous manner
and that all provisions of the Final Act Embodying the Results of the Uruguay
Round of Multilateral Trade Negotiations 23/ should be effectively applied,
so as to maximize economic growth and the developmental benefits thereof for
all, taking into account specific difficulties and interests of developing
countries;

     13. Urges Governments and concerned organizations to implement fully and
expeditiously the Ministerial Decision on Measures in Favour of the Least
Developed Countries,23 as well as to apply effectively the Ministerial
Decision on Measures Concerning the Possible Negative Effects of the Reform
Programme on Least Developed and Net Food-importing Developing Countries,23 as
well as the recommendations adopted at the Mid-term Global Review of the
Implementation of the Programme of Action for the Least Developed Countries
for the 1990s and at the ninth session of the United Nations Conference on
Trade and Development as they relate to trade and trade-related issues of the
least developed countries;

     14. Emphasizes the importance of the strengthening of, and the attaining
of greater universality by, the international trading system, welcomes the
process directed towards accession to the World Trade Organization of
developing countries and countries with economies in transition, and
emphasizes the necessity for World Trade Organization member Governments and
relevant international organizations to assist non-World Trade Organization
members so as to facilitate their efforts with respect to accession in an
expeditious manner on the basis of World Trade Organization rights and
obligations and for the United Nations Conference on Trade and Development to
provide technical assistance, thereby contributing to their rapid and full
integration into the multilateral trading system;

     15. Also emphasizes the importance of the inaugural Ministerial
Conference of the World Trade Organization, to be held in Singapore in
December 1996, in regard to reviewing the implementation of the Uruguay Round
agreements and their built-in agenda, stressing that the pursuit of that
agenda, as well as the international community's handling of new issues
affecting the conduct of international trade relations, should be carried out
in a balanced manner which takes into account the concerns of all countries,
including developing countries;

     16. Further emphasizes that the dispute settlement mechanism of the
World Trade Organization is a key element with regard to the integrity and
credibility of the multilateral trading system and the full realization of the
benefits anticipated from the conclusion of the Uruguay Round;

     17. Deplores any attempt to bypass or undermine multilaterally agreed
procedures on the conduct of international trading by resorting to unilateral
actions over and above those agreed in the Uruguay Round, and affirms that
environmental and social concerns should not be used for protectionist
purposes;

     18. Emphasizes the need for a balanced and integrated approach to
environment, trade and development issues; 

     19. Reaffirms that Governments should have as their objective to ensure
that trade and environmental policies are mutually supportive so as to achieve
sustainable development and that, in doing so, their environmental policies
and measures with a potential trade impact should not be used for
protectionist purposes, and reaffirms that positive measures such as market
access, capacity-building, improved access to finance and access to transfer
of technology, taking into account the relationship between trade-related
agreements and technology, are effective instruments in assisting developing
countries to meet multilaterally agreed targets, while noting that trade
measures can, in certain cases, play a role in achieving the objectives of
multilateral trade agreements, while safeguarding a non-discriminatory and
equitable multilateral trading system;

                                      III

     20. Recognizes the important progress made in understanding the
relationship between trade and environment in the Committee on Trade and
Environment of the World Trade Organization, as well as in the United Nations
Conference on Trade and Development, and in the Commission on Sustainable
Development, including the recommendations made at its fourth session, and
requests the Conference to continue its work on trade, environment and
development, in cooperation with relevant international organizations
including the Commission on Sustainable Development, the United Nations
Environment Programme, the Organisation for Economic Cooperation and
Development, regional organizations and the World Trade Organization;

     21. Requests the United Nations Conference on Trade and Development to
continue its special role in promoting the integration of trade, environment
and development, in accordance with paragraph 27 of General Assembly
resolution 50/95, by examining trade and environment issues from a development
perspective, in close cooperation with the United Nations Environment
Programme and the World Trade Organization and as task manager for the
Commission on Sustainable Development;

     22. Stresses the role of the United Nations Conference on Trade and
Development in the context of the forthcoming special session of the General
Assembly for the purpose of an overall review and appraisal of the
implementation of Agenda 21;

     23. Requests the United Nations Conference on Trade and Development, on
the basis of the outcome of its ninth session, to identify and analyse the
implications for development of issues relevant to investment, taking into
account the interests of developing countries and bearing in mind the work
undertaken by other organizations;

     24. Reaffirms the need to give priority to the problems facing the least
developed countries, and reaffirms in particular that actions, as appropriate,
should be taken to assist the least developed countries to maximize the
potential opportunities and minimize possible difficulties arising from the
Uruguay Round agreements;

     25. Requests Governments, organs, organizations and bodies of the United
Nations system and intergovernmental and non-governmental organizations to
take concrete measures to implement fully and as a matter of urgency the
United Nations New Agenda for the Development of Africa in the 1990s,
including the measures and recommendations agreed upon at its mid-term review,
especially those related to trade and development;

     26. Invites the United Nations Conference on Trade and Development, the
World Bank and the United Nations Development Programme to improve
collaboration between the Conference's country-level programmes for least
developed countries and the overall macroeconomic and sectoral policy dialogue
in respect of those countries at the World Bank Consultative Group and United
Nations Development Programme Round Tables, bearing in mind General Assembly
resolution 50/120 of 20 December 1995;

     27. Stresses the need to give special attention, within the context of
international cooperation on trade and development issues, to the
implementation of the many international development commitments geared to
meeting the special development needs and problems of small island developing
States and of landlocked developing States, as well as to recognize that
developing countries which provide transit services need adequate support in
maintaining and improving their transit infrastructure;

     28. Invites preference-giving countries to continue to improve and renew
their Generalized System of Preferences schemes in keeping with the post-
Uruguay Round trading system and with the objective of integrating developing
countries, especially least developed countries, into the international
trading system, and stresses that ways and means should be found to ensure
more effective utilization of Generalized System of Preferences schemes,
particularly by least developed countries;

     29. Notes the concern among the beneficiaries that the enlargement of
the scope of the Generalized System of Preferences by linking eligibility to
non-trade considerations may detract value from its original principles,
namely, non-discrimination, universality, burden sharing and non-reciprocity;

     30. Stresses that Governments, as well as international organizations,
should extend technical assistance to developing countries to enable them to
participate more effectively in the international trading system;

     31. Encourages the United Nations Conference on Trade and Development to
further promote South-South cooperation, including triangular cooperation,
recalling the results of the Intergovernmental Meeting of Experts on South-
South cooperation, which was held in New York from 31 July to 4 August 1995,
and the outcome of the ninth session of the Conference;

     32. Notes that the forthcoming South-South conference on finance, trade
and investment, to be held at San Jose', Costa Rica, will provide an
opportunity for developing countries to advance initiatives related to the
document entitled "A Partnership for Growth and Development", and invites the
international community to support the initiative;

     33. Requests the Secretary-General of the United Nations Conference on
Trade and Development, through the Secretary-General of the United Nations, to
submit a proposal on savings resulting from improved overall cost-
effectiveness achieved pursuant to the ninth session of the Conference,
including the restructuring of the intergovernmental machinery and reform of
the Secretariat, and to submit a proposal on how to reallocate a part of the
savings in the 1998-1999 budget cycle with a view to strengthening the
Conference's capabilities in priority areas, including, inter alia, in
technical cooperation.


                              DRAFT RESOLUTION V

            Transit environment in the landlocked States in Central
                 Asia and their transit developing neighbours

     The General Assembly,
     
     Recalling its resolutions 48/169 and 48/170 of 21 December 1993 and its
resolution 49/102 of 19 December 1994,

     Recalling also the agreed conclusions and recommendations of the First
24/ and the Second 25/ Meeting of Governmental Experts from Landlocked and
Transit Developing Countries and Representatives of Donor Countries and
Financial and Development Institutions, held in New York from 17 to 19 May
1993 and from 19 to 22 June 1995, respectively, and in particular the
conclusions and recommendations of those meetings pertaining to the newly
independent and developing landlocked States in Central Asia and their transit
developing neighbours,

     Recognizing that the overall socio-economic development efforts of newly
independent and developing landlocked States, seeking to enter world markets
through the establishment of a multicountry transit system, are impeded by a
lack of territorial access to the sea as well as by remoteness and isolation
from world markets,

     Supporting the current efforts being undertaken by the newly independent
and developing landlocked States in Central Asia and their transit developing
neighbours through relevant multilateral, bilateral and regional arrangements
to address the issues regarding the development of a viable transit
infrastructure in the region,

     Considering that the outcome of the Symposium for Landlocked and Transit
Developing Countries, held at United Nations Headquarters from 14 to
16 June 1995, in particular the document entitled "Global framework for
transit transport cooperation between landlocked and transit developing
countries and the donor community", 26/ is a practical contribution to the
development objectives and efforts of the United Nations,   

     Taking note of the progress report of the Secretary-General of the
United Nations Conference on Trade and Development on measures designed to
improve the transit transport environment in Central Asia, 27/ and
considering that the problems of transit transport facing the Central Asian
region need to be seen against the backdrop of economic changes and the
accompanying challenges, including especially the impact of those changes on
the international and intraregional trade of the countries concerned,

     Recognizing that, to be effective, a transit transport strategy for the
newly independent and developing landlocked States in Central Asia and their
transit developing neighbours should incorporate actions that address both the
problems inhering in the use of existing transit routes and the early
development and smooth functioning of new, alternative routes,

     Emphasizing the importance of strengthening international support
measures to address further the problems of the newly independent and
developing landlocked States in Central Asia and their transit developing
neighbours,

     1.  Takes note of the results of the Technical Meeting on Central Asia's
Transit Transport Links with World Markets, 28/ held at Ankara from 7 to
9 November 1995, under the auspices of the United Nations Development
Programme and the United Nations Conference on Trade and Development;  

     2.  Invites the Secretary-General of the United Nations Conference on
Trade and Development and the Governments concerned, in cooperation with the
United Nations Development Programme, the Economic and Social Commission for
Asia and the Pacific, the Economic Commission for Europe and relevant regional
and international organizations and in accordance with approved programme
priorities and within existing financial resources, to continue elaborating a
programme for improving the efficiency of the current transit environment in
the newly independent and developing landlocked States in Central Asia and
their transit developing neighbours;

     3.  Invites donor countries and multilateral financial and development
institutions, within their mandates, to provide newly independent and
developing landlocked States in Central Asia and their transit developing
neighbours with appropriate financial and technical assistance for the
improvement of the transit environment for those countries;

     4.  Calls upon the United Nations system to continue studying, within
the scope of the implementation of the present resolution, possible ways of
promoting more effective cooperative arrangements between landlocked States in
Central Asia and their transit neighbours and to encourage a more active
supportive role on the part of the donor community;

     5.  Requests the Secretary-General of the United Nations Conference on
Trade and Development to prepare a report on the implementation of the present
resolution, to be submitted to the General Assembly at its fifty-third
session.


                              DRAFT RESOLUTION VI

                                  Commodities

     The General Assembly,

     Recalling its resolutions 45/200 of 21 December 1990, 47/185 of
22 December 1992, 48/214 of 23 December 1993 and 49/104 of 19 December 1994,
and stressing the urgent need to ensure their full implementation,

     Recognizing that in many developing countries, in particular African
countries and least developed countries, the commodity sector remains the
principal source of export revenues, and of the creation of employment, income
and savings, and a driving force of investments and contributor to growth and
development,

     Also recognizing the need for a better functioning of commodity markets
and the necessity of stable and more predictable commodity prices, including
searching for long-term solutions,

     Mindful of the need for developing countries, especially African
countries and least developed countries, to diversify their economies, in
particular the commodity sector, with a view to modernizing their production,
distribution and marketing systems, enhancing productivity, and stabilizing
and increasing their export earnings,

     Concerned about the difficulties experienced by the developing countries
in financing and implementing viable diversification programmes,

     1.  Welcomes the outcome of the ninth session of the United Nations
Conference on Trade and Development, including the Midrand Declaration and the
document entitled "A Partnership for Growth and Development", 29/ related
to the issues of commodities;

     2.  Emphasizes the need for developing countries that are heavily
dependent on primary commodities of continuing to promote a domestic policy
and an institutional environment that encourage diversification and enhance
competitiveness;

     3.  Notes the need expressed by developing countries, in particular the
commodity-dependent developing countries, for stable and more predictable
commodity prices, in the face of instability and decline in real terms of the
prices of many commodities;

     4.  Expresses the urgent need for supportive international policies to
improve the functioning of commodity markets through efficient and transparent
price formation mechanisms, including commodity exchanges, and through the use
of commodity price risk management instruments;

     5.  Urges developed countries to continue to support the commodity
diversification efforts of developing countries, especially African countries,
in a spirit of common purpose and efficiency, inter alia, by providing
technical and financial assistance for the preparatory phase of their
commodity diversification programmes;

     6.  Reiterates the importance of maximizing the contribution of the
commodity sector to economic growth and sustainable development in commodity-
dependent developing countries and, in this respect, stresses, inter alia,
that:

     (a) Trade-distorting policies and practices, including tariff and
non-tariff barriers, tariff escalation and obstacles to competition, have a
negative effect on the ability of developing countries to diversify their
exports and to undertake the requisite restructuring of their commodity
sector;

     (b) Expansion of South-South trade in commodities offers opportunities
for intersectoral linkages within and among exporting countries;

     (c) In line with Agenda 21 30/ and the Rio Declaration on Environment
and Development, 31/ Governments should have as their objective to ensure
that trade and environmental policies are mutually supportive so as to achieve
sustainable development; in so doing, their environmental policies and
measures with a potential trade impact should not be used for protectionist
purposes;

     (d) The issues related to commodities in the context of sustainable
development should be fully taken into account by all overall review and
appraisal machinery of the implementation of Agenda 21 adopted by the United
Nations Conference on Environment and Development;

     (e) There is a need to promote research and development, to provide
infrastructure and support services, and to encourage investment, including
joint ventures in developing countries engaged in the commodity and commodity-
processing sectors;

     7.  Emphasizes the importance for developing countries to process a
significant part of their commodities, and in that regard stresses the
importance of new market opportunities for their processed and semi-processed
commodities;

     8.  Encourages the Common Fund for Commodities, in cooperation with the
International Trade Centre, the United Nations Conference on Trade and
Development and other relevant bodies, to direct its commodity development
programmes more towards commodity sector diversification projects, as well as
to promote commodity market development in the developing countries, with
particular focus on the needs of least developed countries, and to explore
effective ways and means of using the resources of the First Account of the
Common Fund;

     9.  Urges producers and consumers of individual commodities to intensify
their efforts to reinforce mutual cooperation and assistance;

     10. Requests the Food and Agriculture Organization of the United Nations
and other relevant international organizations to continue to provide
technical support to the basic food sector of developing countries, in
particular net food importing countries, inter alia, in meeting their
commitments under the Uruguay Round agreements;

     11. Welcomes the technical cooperation activities that will be
undertaken by the United Nations Conference on Trade and Development, in
collaboration with the World Trade Organization and other concerned
international organizations in the field of international commodity trade;

     12. Requests the United Nations Conference on Trade and Development,
within the framework of its programme of cooperation with the World Trade
Organization, to provide analytical information related to the Ministerial
Decision on Measures Concerning the Possible Negative Effects of the Reform
Programme on Least Developed and Net Food-importing Developing Countries,
32/ and encourages it to continue to assist, in accordance with the outcome of
its ninth session, in vertical and horizontal diversification in commodity-
dependent countries, and to promote the use of risk management in favour of
producers and exporters;

     13. Requests the Secretary-General of the United Nations Conference on
Trade and Development to report to the General Assembly at its fifty-third
session on world commodity trends and prospects, with particular emphasis on
commodity-dependent developing countries in accordance with the outcome of the
ninth session of the United Nations Conference on Trade and Development;

     14. Decides to include the question of commodities in the provisional
agenda of its fifty-third session.

                                    *  *  *

39.  The Second Committee also recommends to the General Assembly the
adoption of the following draft decision:


             Documents relating to macroeconomic policy questions

     The General Assembly decides to take note of the following documents:

     (a) Report of the Secretary-General on global financial integration: 
challenges and opportunities; 33/

     (b) Report of the Secretary-General on strengthening international
organization in the area of multilateral trade; 34/

     (c) Note by the Secretary-General transmitting the report of the
secretariat of the United Nations Conference on Trade and Development on
specific measures in favour of island developing countries; 35/

     (d) Notes by the Secretary-General transmitting the report of the Joint
Inspection Unit entitled "United Nations Conference on Trade and Development: 
review of institutional and programme issues" 36/ and the comments of the
Secretary-General thereon. 37/


                                     -----

                                     Notes

1/   To be issued in final form as Official Records of the General Assembly,
Fifty-first Session, Supplement No. 15 (A/51/15), vol. I.

2/   Ibid., vol. II.

3/   Official Records of the General Assembly, Fifty-first Session,
Supplement No. 48 (A/51/48).

4/   A/51/294.

5/   See Legal Instruments Embodying the Results of the Uruguay Round of
Multilateral Trade Negotiations, done at Marrakesh on 15 April 1994 (GATT
secretariat publication, Sales No. GATT/1994-7).

6/   Resolution 50/103, annex.

7/   United Nations publication, Sales No. E.96.11.C.1.

8/   A/51/291.

9/   See A/51/308.

10/  A/51/15 (vol. II).

11/  See Proceedings of the United Nations Conference on Trade and
Development, Eighth Session, Report and Annexes (TD/364/Rev.1) (United Nations
publication, Sales No. E.93.II.D.5), part one, sect. A.

12/  Report of the United Nations Conference on Environment and Development,
Rio de Janeiro, 3-14 June 1992, vol. I, Resolutions Adopted by the Conference
(United Nations publication, Sales No. E.93.I.8 and corrigendum),
resolution 1, annex II.

13/  Resolution 46/151, annex, sect. II.

14/  Report of the United Nations Conference on Environment and Development,
Rio de Janeiro, 3-14 June 1992, vol. I, Resolutions Adopted by the Conference
(United Nations publication, Sales No. E.93.I.8 and corrigendum), resolution
1, annex I.

15/  Official Records of the General Assembly, Fifty-first Session,
Supplement No. 48 (A/51/48).

16/  A/51/294.

17/  Resolution 50/103, annex.

18/  United Nations publication, Sales No. E.96.II.C.1.

19/  A/51/291.

20/  See A/51/308.

21/  A/51/15 (vol. II); to be issued in final form as Official Records of the
General Assembly, Fifty-first Session, Supplement No. 15 (A/51/15), vol. II.

22/  See Legal Instruments Embodying the Results of the Uruguay Round of
Multilateral Trade Negotiations, done at Marrakesh on 15 April 1994 (GATT
secretariat publication, Sales No. GATT/1994-7).

23/  Ibid.

24/  TD/B/40(1)/2-TD/B/LDC/AC.1/4.

25/  TD/B/42(1)/11-TD/B/LDC/AC.1/7.

26/  TD/B/42(1)/11.

27/  A/51/288, annex.

28/  See UNCTAD/LLDC/MISC.4, 1996.

29/  See A/51/308.

30/  Report of the United Nations Conference on Environment and Development,
Rio de Janeiro, 3-14 June 1992, vol. I, Resolutions Adopted by the Conference
(United Nations publication, Sales No. E.93.I.8 and corrigendum),
resolution 1, annex II.

31/  Ibid., annex I.

32/  See Legal Instruments Embodying the Results of the Uruguay Round of
Multilateral Trade Negotiations, done at Marrakesh on 15 April 1994 (GATT
secretariat publication, Sales No. GATT/1994-7).

33/  A/51/388.

34/  A/51/331.

35/  A/51/255.

36/  A/51/152.

37/  A/51/152/Add.1.

 

This document has been posted online by the United Nations Department of Economic and Social Affairs (DESA). Reproduction and dissemination of the document - in electronic and/or printed format - is encouraged, provided acknowledgement is made of the role of the United Nations in making it available.

Date last posted: 28 December 1999 17:35:10
Comments and suggestions: esa@un.org