With the compliments of - United Nations€¦ · industry's advice on certain aspects of farm mechanization for rice production. 3. Proposals for Future Cooperation (a) Mr. Kniep

With the compliments of

Walter W.SimonsEXECUTIVE DIRECTOR

I thought you will be interested

in the latest steps taken to

implement UNDP/ICD cooperation.

Industry Cou821 UNITED NATIONS PLAZA -NEW YORK. NEW-YORK 10017

Industry Council for Development

MEMORANDUM

December 20, 1979

To: ICD Members

From: Walter W. Simons, Executive Director, ICD

Subject: UNDP/ICD Cooperation

I attach the record of the ICD Board's meeting with UNDPsenior officials on 25 October (This report was delayedby UNDP clearance procedures). Also enclosed isa copy of Mr. Morse's memorandum to his staff explainingthe purpose of the "Guidelines" which provide the frame-work for UNDP's cooperation with ICD as well as other"external institutions."

This meeting was another step in our implementation ofUNDP/ICD cooperation. Beside identifying some specificareas for such cooperation, the meeting further clarifiedthe kinds of expertise which ICD is prepared to provide andthe stages in the development process where ICD can bemost effective. The Administrator and Deputy Administratorof UNDP stressed the importance of involving ICD in theearly aspects of development planning including projectidentification.

We are now following up this meeting with the regionalbureau directors and other UNDP officers to develop newactivities for our 1980 work plan.

821 UNITED NATIONS PLAZA NEW YORK. NEW YORK 10017

TELEPHONE: (212) 867-5017 CABLE: INDUSCODEV TELEX-23 89 76

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I am pleased to report that our initial cooperative activitieswith UNDP in 1979 have been well received. ICD's firstcountry mission to Lesotho has recently been completed andthe report will be submitted to UNDP and the government shortly.J.T. Homewood, Vice-President, Nestle Product TechnicalAssistance Company, led the mission which also includedexecutives from FMC and Libby' s.

The mission has prepared a long-term assessment of the fruitand vegetable industry, as well as a business plan for thatindustry to attain economic and social viability within threeto six years* This assessment will justify a major grant bythe UN Capital Development Fund to the government for thisproject. In addition, the project relates closely to majorgovernment policies concerning employment, agriculture and landuse, balance of payments and income distribution. The mainreport will therefore relate the specific industrial developmentto these broader policy areas. The mission's recommendationswill also serve as guidelines for structuring other agro-industriesin Lesotho.

The first cooperative project proposed by ICD to UNDP is alsoin the active planning stage. This will be a symposium ontechnology for developing country conditions which Philips willhost at its pilot factory in Utrecht next year (descriptionof the project is attached to the meeting report).

At its next meeting on 22 January 1980, the Board will considerour 1980 work plan. We would welcome your ideas for this plan,in particular:

a. your assessment of situations in particular developingcountries which we might explore for ICD cooperationeither directly with the local government or throughthe UN system.

b. ideas for cooperative projects which (like the Philipsproject) might be proposed to UNDP for collaborationon a specific policy or problem area or perhaps a subject,like training, which relates to a variety of sectors.

Seasons Greetings from the ICD headquarters staff; we lookforward to working with you in the exciting new year ahead.

encls.

UNDP/ICD Cooperation

Meeting of UNDP Senior Officials andMembers of the Board of Directors ofthe Industry Council for Development

25 October 1979

1. Opening Comments by the UNDP Administrator and the ICD Chairman

Mr. Bradford Morse, the Administrator of UNDP, opened the meetingand gave the Chair to Mr. G. A. Brown, Deputy Administrator.Mr. Morse emphasised the UN system's urgent need to mobilizeservices and know-how that will provide "additionality" tothe financial resources available for development. This hasled the UNDP Governing Council in June 1979 to adopt Guidelinesfor Cooperation with External Institutions - organizations which,like ICD, have expertise available to assist development.

Senior UNDP staff and Resident Representatives have received amemorandum informing them of the new guidelines and how they willfacilitate inputs from "Cooperating Organizations".

This meeting was the second between UNDP and ICD aimed at imple-menting the guidelines. Now.that preparations for cooperationhave been completed on both sides, the major priority is effectivecooperative action, resulting in tangible benefits for thedeveloping world.

Mr. Walther Kniep, Chairman of ICD, supported the Administrator'sremarks, stressing the Council's desire to assist the economic.and social priorities of developing countries, particularlythrough cooperation with UNDP.

2. Status Report on UNDP/ICD Cooperation

Mr. W. Simons, Executive Director of ICD, explained that theCouncil had been established as a non-profit corporation inJanuary 1979 and is now supported by industry members from

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18 countries, as well as bilateral agencies, foundations, etc.

Following the Governing Council session in June, the Administratorwrote to the Chairman of ICD informing him that the Council qualifiedfor cooperation with UNDP under the new guidelines. The Chairmanof ICD replied that members of the Council agreed that theguidelines provided a sound working basis for future cooperationwith UNDP.

On 13 July, the Administrator of UNDP was moderator of an ICDsymposium designed to identify potential areas for UNDP/ICDcooperation. At the same time, liaison between the two organizationshad begun, through UNDP's Bureau for Special Activities. Initialcontacts have already resulted in several cooperative projects,including the forthcoming assessment of the viability of a fruitand vegetable industry in one African country; a technicalassessment of two proposals to the UN Capital Development Fundfor new industries in one Asian country; and establishment ofcontacts with a group of Asian governments that may wish to requestindustry's advice on certain aspects of farm mechanization forrice production.

3. Proposals for Future Cooperation

(a) Mr. Kniep made the following clarifications in response toquestions from UNDP officers:

(i) the basic resource of ICD is industry's "know-how",particularly expertise in management, science andtechnology, marketing and training;

(ii) there are various "delivery mechanisms" for makingthis expertise available to developing countrygovernments, including high-level advisory missions,technical task forces, workshops, seminars, deskstudies, etc.;

(iii) ICD makes such expertise available as a service todevelopment. There may be cost-sharing arrangements,as provided in the "guidelines", but, otherwise, ICDdoes not seek sub-contracts,, consulting or othercommercial arrangements with UNDP;

(iv) governments can request ICD's assistance directly orthrough UNDP, When the Council receives a requestdirectly from a government, it will consult with UNDPin planning its response.

(b) UNDP Proposals for Cooperative Action;

The Regional Bureaux Directors and other senior UNDP officerspresented a variety of ideas for possible cooperative activities,including:

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(i) Africa region:

Mr. M. Doo Kingue, Assistant Administrator and RegionalDirector, Regional Bureau for Africa, asked if ICD couldprepare a paper on research and development trends andnew technology developments for a regional meeting onScience and Technology in May 1980. This could lead tofurther cooperation at national and regional levels.Mr. Kniep welcomed this proposal and asked for furtherdetails to assess ICD's possible contribution. The Councilis already in contact with a group of companies whichparticipated in the UN Conference on Science and TechnologyDevelopment (UNCSTD) and which might assist such a project.

(ii) Latin America

Mr. G. Valdes, Assistant Administrator and Regional Director,Regional Bureau for Latin America, also saw new technologydevelopment as a priority for Latin American governments.This includes increased capacity for work in the basicsciences, development of advanced processes such as carbo-chemicals and expansion of essential industries such asfood and agriculture. In such industries, governments needadvice on the "state of the art", the availability of variousoptions for technology transfer and the possibilities forjoint ventures. In all such areas, ICD could complement theadvice available through specialised UN agencies.

ICD might also assist UNIDO's Senior Industrial DevelopmentField Advisers (SIDFA) who work with governments on newindustrial projects - such as manufacture of capital goods,import substitution, etc. - where guidance is often neededon technical and marketing factors.

Mr. Kniep said that ICD was interested in assisting in thesituations described by Mr. Valdes, and urged that theCouncil be contacted early in the planning process to allowthe most effective use of industry expertise.

Mr. Brown further clarified that the first contact with ICDis at the project identification stage. The need is forinputs to help crystallize projects - to assist in projectcreation and design, particularly in high-technology.

The Administrator added that ICD might also help governmentsin their recovery from natural disasters. Dominica and theDominican Republic are recent examples where the rehabilitationof agro-industries may also present possibilities for "newbeginnings".

He also urged ICD to increase its membership from developingcountries, as this would help in TCDC efforts. The ICDChairman agreed and added that member subsidiaries in ThirdWorld countries are also developing managerial and technologicalskills relevant to TCDC objectives.

_ 4 -

(iii) Asia and the Pacific

Mr. Andrew J, Joseph, Assistant Administrator and RegionalDirector, Regional Bureau for Asia and the Pacific, reiteratedthe potential value of ICD expertise in complementing thatavailable from the specialised agencies. He furtheremphasised that UNDP's role should be perceived, above all,as a vehicle through which ICD could reach the developingcountries which were in need of their expertise. ICD'srecent contacts with governments of the Asian region throughthe Regional Network on Agricultural Mechanization (RNAM)showed how cooperation could be organized around a majorregional priority. Other priorities might include non-conventional energy, food processing and high-risk mining,such as off-shore exploration.

Mr. Joseph expressed the willingness of his Bureau tospecify regional activities concerning the above, whereICD inputs could be particularly appropriate, and to arrangefor the Council's participation in regional meetings whererelevant.

Mr. Brown reiterated, for clarification, the basic principleexpressed in the Guidelines of direct cooperation betweenICD and governments, pointing out that, because of UNDP'sannual reporting requirements, it only needed to be keptinformed of activities in which it did not act as anintermediary.

(iv) Arab States

Mr. S. Al-Shaikhly, Assistant Administrator and RegionalDirector, Regional Bureau for Arab States, also wanted toexplore how ICD's expertise could be used as a complement tothat of the specialized UN agencies. He will be reviewingthis matter with the governments of his region.

The Regional Director felt that,as far as the Arab States areconcerned, the specialized agencies are logically the vehiclefor ICD action. / Mr. Morse underlined the concept ofadditionality and stressed that the importance of cooperatingorganizations lies in their ability to offer new resourcesover and above the Indicative Planning Figure (IPF) andcountry programme. Mr. Joseph emphasized the need for amechanism to let countries and agencies know clearly how touse the services which were available. It was Mr. Brown'sopinion that project identification and formulation werethe first areas of cooperation and cited particularly theavailability through ICD of what was termed the "software"of industry expertise.

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(v) Europe

Mr. P. J. Prins, Chief, Unit for Europe, mentioned the high-technology interests of several countries in his region whichare recipients of UNDP assistance. In his opinion, ICD couldbe involved in regional projects which deal with technologytransfer between European countries, particularly the centrallyplanned economies. ICD might also be a catalyst for cooperationbetween governments of Europe and those in the less-developedregions.

(vi) Technical Cooperation between Developing Countries (TCDC)

Mr. H.R. Idris, Director, Special Unit for TCDC, selected seedindustry development as a priority sector where ICD mightassist TCDC efforts. In particular, developing country seedindustries need expertise in management, marketing and theselection of relevant technology. He cited a case history inSudan where the failure of government/industry cooperationretarded vital seed industry development.

Mr. Kniep shared Mr. Idris1 priority concern for developingcountry seed enterprises. Although there are proprietaryproblems related to the international seed trade, there aremany ways in which ICD can facilitate cooperation in thissector.

Mr. J. I. Hendrie, ICD Seeds Industry Coordinator, reviewedthe Council's Commercial Seeds Industry Development Project (CSIDP)which is financed by a grant from USAID. Management advisoryservices, fellowships and training programmes, and assistancein joint venture promotion are among the various kinds ofassistance that ICD can provide to developing country seedenterprises. This will involve cooperation with companies inother parts of the developing world, as well as seed firmsin the industrialised countries.

(vii) Investment follow-up

After Mr. K. Kapur, Chief, Investment Development Office,introduced this subject, discussion focused on how ICD mightassist in promoting priority investment projects. While ICDdoes not become involved in project financing, it could provideadvice in technical, managerial or marketing aspects, particularlyif consulted in the early stages of projects where governmentsseek private or other industry partners.

(viii) Science and Technology

Mr. R. M. Lees, Special Adviser to the Administrator, reviewedthe results of the UN Conference on Science and Technologyfor Development (UNCSTD) held recently in Vienna, at whichscience and technology were, for the first time, establishedas a development priority. UNDP will be responsible for

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implementing an interim two-year fund of $250 million. Projectactivities will follow-up Conference recommendations and explorethe need for a larger longer-term UN system effort in thisfield. Possibilities for UNDP/ICD cooperation will be reviewedas UNCSTD follow-up activities are planned.

(c) ICD proposals for coopejrative activities

Dr. J. C. Ramaer, Vice-chairman of ICD, presented the ICD proposalfor a Workshop on Technology for Developing Country Conditions tobe held at the Philips Utrecht Pilot Factory. The objective wouldbe to develop guidelines for use in planning and implementing theselection and transfer of technology relevant for basic manufacturingindustries in the developing countries. Participants would includeUN system staff and developing country planners. The proposal waswelcomed by UNDP and ICD will now prepare plans for holding theWorkshop in the second cruarter • of 1980 (Annex I)

4. Closing comments by the UNDP Administrator

Mr. Morse emphasized the following main points:

(i) ICD has the competence to assist the development process inthe areas of:

development planningmanagementtechnology transfer

- human resource developmentscience and technology

In this regard, UNDP will consider ICD as a channel, particularlyfor mobilising management and technology skills, training andexpertise in science and technology.

(ii) Modalities established by the Guidelines now allow developingcountries to take advantage of industry's expertise throughICD. In all cases, developing country governments determinepriorities and initiate requests for such assistance.

(iii) ICD can be particularly helpful in project formulation anddesign. This means the Council should be involved at the earlystages of such development.

(iv) UNDP cooperation with ICD should help bring the "additionality"sought by the UN system, particularly in the areas of humanskills.

(vi) UNDP/ICD cooperation will also provide know-how helpful toUN staff in their professional role in providing services todeveloping country governments.

- 7 -

(vii) ICD was encouraged to broaden its working relationshipswith the executing agencies of the UN system.

The Chairman of ICD agreed with Mr. Morse's conclusions and reiteratedthe importance of establishing a close working liaison betweenUNDP and the Council, particularly in the initial stages ofprogramme and project developments.

Annex 1

UNDP/ICD COOPERATION

PROPOSED PROJECT

PROJECT TITLE: Symposium on technology for developingcountry conditions. ''

OBJECTIVE: To develop practical "guidelines" for use by.Government and UN system officials in planning andimplementing the choice o£ technology for basicmanufacturing industries in developing countries.

LOCATION: N.V.Philips'Gloeilampenfabrieken, Pilot Plant atUtrecht, The Netherlands.

PARTICIPANTS: Maximum 25 individuals, including 10 to 15UN system and/or developing country officials, asdetermined by UNDP. The balance would include Philipsand ICD staff and other experts as required.

PROPOSED DATES: 3 days (Tuesday to Thursday), in the secondquarter of 1980.

The Symposium would examine the process of how technology isselected and transferred to developing countries.Critical decisions in the planning process would be identified,as well as the basic questions that planners and other develop-ment officials must resolve at each step..

Case histories of ongoing or recent projects involving the choiceof relevant technologies from both indigenous and international sourcesas selected by UNDP and ICD would be reviewed by Symposiumparticipants to gain experience in analysing and understanding thedynamics of the technology transfer process. The facilities of thePhilips Pilot Plant and the experience of plant staff would beavailable as resources for the Symposium. From this experience,the Symposium would draft practical guidelines for UN system and _Government planners to use in selecting and transferring -technology.

Follow-up sessions of the Symposium might also be considered tofurther refine the guidelines, taking into account field experiencein their use.

Annex II

Meeting of UNDP Senior Officialsand ICD Board of Directors

25 October 1979

List of Participants

UNDP Representatives

Mr. Bradford Morse, Administrator

Mr. G. Arthur Brown, Deputy Administrator

Mr. Michel Doo Kingue, Assistant Administrator and Regional Director,Regional Bureau for Africa

Mr. Andrew J. Joseph, Assistant Administrator and Regional Director,Regional Bureau for Asia and the Pacific

Mr. Salah Al-Shaikhly, Assistant Administrator and Regional Director,Regional Bureau for Arab States

Mr. Gabriel Valdes S., Assistant Administrator and Regional Director,Regional Bureau for Latin America

Mr. Carlos S. Vegega, Acting Assistant Administrator, Bureau forSpecial Activities

Mr. John Burley, Division for Global and Inter-regional Projects

Mr. Arturo Chavez, Technical Adviser, Bureau for Programme, Policyand Evaluation

Mr. Miguel Da Graca, Regional Bureau for Africa

Mr. A. Bruce Harland, Acting Director, Bureau for Programme Policyand Evaluation, BPPE

Mr. Hussein Raffay Idris, Director, Special Unit for TCDC

Mr. Krishan Kapur, Chief, Investment Development Office

Mr. Robert Martin Lees, Special Adviser to the Administrator

Mr. Madan Mohan, Director, Planning and Coordination Office

Mr. J. Peter Prins, Chief, Unit for Europe

Mr. Timothy S. Rothermel, Chief, Executive Office of the Administrator

Mr. David Thorup, Planning Officer, Bureau for Special Activities

Mr. Adalat Khan, Officer-in-charge, UN Capital Development Fund

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ICD Representatives

Board of Directors

Chairmani

Vice-Chairman:

Vice-chairman:

Treasurer;

Assistant' Treasurer:

Mr. W. Kniep, Chairman, CPC Europe Ltd., Brussels

Dr.- J.C. Ramaer, Deputy Managing Director,.JJ.V. Philips' Gloeilampenfabrieken, Eindhoven

t

Mr. R. Violot, Directeur des Recherches Economigues,.Compagnie du Nord, Paris

Mr. J.F.P. Tatef Director, Tate & Lyle Ltd., London

Mr. G. F. Landegger, President, Parsons & VJhittemore I.New York

Mr. M. Belpomme, President Directeur general du Groupe SODETEG,Thomson-Brandt, Le Plessis-Robinson

Mr. J.B. Jensen, Managing Director, Danish Turnkey Dairies Ltd.,Aarhus

Dr. J. Szabo, Director, Agrip, Budapest

Consultants to the Board

•Agro-Chemical Industries :

Developing Country :industry Membership

Human Resource Development:and Training

Mr, A. J. Maier

Dr. O. Ballarin, Member of the Board,Eucatex S.A., Sao Paulo

Mr. N. Schenet, Corporate Staff Vice-President, IMC Corporation, Korthbrook

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Sector Coordinators

Agricultural Production Industries :

Mr. H.A.R. Powell, Chairman, Massey Ferguson Holdings Ltd.,London

Food Industries :

Mr. R. Reuter, Vice-President, Kraft Inc., Chicago

Heavy Industries :

Dr. E. Ostermann, Director, Voest-Alpine A.G., Linz

Seeds Industry Development :

Mr. J.I. Hendrie, Shell International Chemical Co. Ltd.,London

Observer

Mr. H.F. Harris, Vice-President, CPC International Inc.,Englewood Cliffs

ICD Secretariat

.Executive Director : Mr. W. W. SimonsExecutive Secretary : Mrs. S. E. Rufus

UNITED NATIONS

DEVELOPMENTUNDP/PROG/FIELD/109UNDP/PROG/HQTRS/123

2 November 1979

TO:

FROM:

Field Offices of UNDP andUNDP Headquarters Staff

Bradford MorseAdministrator

SUBJECT: Guidelines on Relations with External Co-operating Organizations

1. For a number of years the United Nations Development Programme hashad relations of varying types with external organizations and insti-tutions which have co-operated with the Programme in support of technicalco-operation projects. In many cases these arrangements have been con-tractual, in conformity with UNDP's financial regulations and rules. Inother cases, however, the relationship between the Programme and theorganization or institution has not been characterized by a contractualagreement, and informal, ad hoc, modalities for mutual co-operation haveevolved.

2. Draft guidelines were prepared in order to regularize the arrange-ments between UNDP (including the Funds associated with UNDP) andorganizations and institutions which may seek to enter into co-operativerelationships with UNDP, and in order to help ensure that such relation-ships are maintained in a uniform manner, are fully consistent with theobjectives of the Programme, and that they do not discriminate amongthe organizations or institutions concerned. The attached paper en-titled "Guidelines concerning the relationship between the United NationsDevelopment Programme and External Institutions"!/ (Annex) were ap-proved by the Governing Council in June 1979 with the proviso that theywould be operative for a trial period of three years, and that I wouldreport annually to the Council on their implementation.

T7~Also available in French and Spanish

- 2 -

3. Our experience so far has shown us that there are considerableresources of expertise and technical know-how which can'be tapped as anadditional input to the development process. Our intention is to drawupon the planning and advisory services which are available, at no costin some cases, or at relatively minimal cost in other cases, fromorganizations and associations whose objectives are to further technicalexchange in the fields of education, science, and industry, as well asfront trade union groups and international co-operative associations.The criteria for our relationship with such co-operating organizationsare spelled out in paragraph three of the Guidelines, and I call par-ticular attention to the requirement that the services of Co-operatingOrganizations are to be made available to countries at the request of thegovernment, either through UND? or directly between the government andthe Co-operating Organisation. Tn this respect, it is also important torecall the earlier circular ' (UNDP/OERI/FIELD/72 and UNDP/ADM/FIELD/329 -HQTRS/176) concerning collaboration with non-governmental organiza-tions. The purpose of formalizing the activities between governments,UNDP and Co-operating Organizations, as described herein, is intended toachieve additionality in co-operation in development. These relation-ships should not be interpreted as replacing existing arrangements andprocedures/ or of being used instead of other forms of co-operation, asalready practiced by UNDP with the Agencies, contractors, non-governmental organizations, etc.

4. Collaboration under the terms of the "Guidelines" has already beenestablished with a.number of organizations, and we are actively engagedin expanding our list of available resources into new and additionalfields where we know that such organizations and institutions can con-tribute additional inputs, over and above our own resources. We hopethat co-operation with these organizations will grow rapidly, drawingfrom sources in both developed and developing countries. Detailedinformation on individual Co-operating Organizations, the services theycan make available and the modalities of co-operative activities in eachinstance will be provided as updated addenda to the present circular.In the implementation of such additional inputs to our developmenteffort, these organizations are able to call upon leading individuals intheir fields to offer their services at no fee, although in some casescertain logistical support costs might be borne by the IFF of therecipient country requesting such services, subject of course, in everycase, to the government's prior agreement. It should also be noted thatthe Guidelines, as stated in paragraph 3, (e) and (f), provide for

3 -

contact directly between recipient governments and the organizationsconcerned, independently of any input from UNDP, or, alternatively, inaccordance with standard UNDP regulations and procedures.

5. It is intended to draw upon the outside expertise of these organiza-tions for additional inputs, to complement the resources already avail-able within the system, in such fields as development planning,preparation and review of country programmes., outside evaluation anddesign of projects, technical consultation/ both at field and head-quarters level, and participation in technical symposiums. This kind ofinput can provide the governments with an additional facility tostrengthen UNDP's efforts in technology transfer and help in exchangebetween leaders in the fields of industry, research, trade and labourwith their counterparts in developing countries. The services which canbe obtained from Co-Operating Organizations may be used at the countrylevel on missions requested by governments, and can equally be madeavailable in advisory roles, in the various field and headquartersfunctions of project and programme design, evaluation and monitoring.

6. I wish to put particular emphasis on the additionality of resourcesin the development effort which we are seeking to draw upon through theuse of Co-oparating Organisations, for the exclusive benefit of thedeveloping countries. In using such institutions we are in no wayexpecting them to replace the many existing sources of planning andexpertise already available, both through the executing agencies, and inour continued use of consultancies and subcontracting. We are, rather,reaching out to these new, and very significant, sources of increasedtechnical transfer within our mandate to assist the developing world inbroadening and enhancing access to new and untapped sources of assistance.

ANNEX

(UNDP/PRCG/FIELD/109 - UNDP/PROG/HGTRS/12 3)

GUIDELINES CONCERNING THE RELATIONSHIP B5TWHEM T.HE UNITEDNATIONS DEVELOPMENT PHCGHA.M.M5 AND EXTERNAL 'INSTITUTIONS

1. There are a number of resolutions of the United Nations. General Assembly which emphasize th^ importanceof facilitating development co-opertion by making available additional technical and financial resources.

2. As one action in response to these resolutions, the Administrator has determined that there should beavailable, for general information and use, guidelines which, establish the basic conditions which rust benset -by institutions and organizations external to the United Nations, including educational, industrial,labour, scientific, technical and trade institutions, organizations and associations, and similar organisa-tions (hereinafter called Co-operating Organisations) to provide development inputs in collaboration with

3. Any operational agreements concluded with individual Co-operating Organizations in respect oE specificassistance activities will be subject to the following guidelines:

(a) Co-operating Organizations must be non-profit and nonpolitical. Membership may be composed ofindividuals or undertakings whatever their form of organization or ownership and may be drawn fromdeveloped countries, developing countries, or both.

(b) For any proposed plan of assistance, a Co-operating Organization must satisfy the Administratorthat one of its objectives is to assist the country or countries concerned in achieving their economicand social goals and not to promote the particular interests oH any members which nay participate inactivities carried out in collaboration with UNDP.

(c) The objectives of the organizations and the activities which they carry out must be, in theju<3gercent of the Administrator, consonant with those of the Charter and objectives of the United Nations.

(ct) The Administrator must be satisfied that the membership of Co-operating Organizations is notsubject to unreasonable or discriminatory conditions.

(e) The services of the Co-operating Organizations should be available either directly to thedeveloping country, at the Government's direct request, or by request of the interested Governmentthrough the United Nations development system, with the decision as to which method should be used beingleft solely to the determination of the developing country concerned.

(£) In any project or programme of assistance. Co-operating Organizations will act only in agreementwith an interested Government and in full harmony with its national priorities. Where appropriate andwhen requested by the Government concerned, Co-operating Organizations will utilize the UNDP countryprogramme as a frame of reference. The agreed services provided and activities undertaken through thefacilities of UNDP must be carried out in full accordance with UNDP's standing policies and procedures.

(g) Services provided by Co-operating Organizations under these guidelines may be either' at their ownexpense in the case of those organizations which are in a position to meet such expense, or becompensated by UNDP in accordance with UNDP's financial regulations and rules.

(h) Reports, recommendations or findings which Co-operating Organizations nay prepare with regard toactivities carried out with UNDP under these guidelines may not be published without the consent of theGovernment or Governments concerned and UNDP.

(i) Consultations shall take place as required between Co-operating Organizations and UNDP throughtheir authorized representatives on aspects of activities carried out in collaboration with UNDP.

( j ) The publications and other documents of Co-operating Organizations will show in suitable form thatthey are operated as independent, self-funded organizations with no linkages to UNDP other than thosederived from any programmes or projects carried out pursuant to these guidelines.

(k) The general conditions required by UNDP for activities carried out by subcontractors (seeUNDP/ADM/HQTRS/210/Add.l of 22 October 1975) will apply to activities carried out by Co-operatingOrganizations under these guidelines unless otherwise agreed through specific arrangements.

RSUTINSSLIP FICHE DE TRANSMISSION

TO:A: Mr. A. Rohan

FROM: , .,T. Ro thermalRoom No. — No de bureau

FOR ACTION

FOR APPROVAL

FOR SIGNATURE

FOR COMMENTS

MAY WE DISCUSS?

YOUR ATTENTION

AS DISCUSSED

AS REQUESTED

NOTE AND RETURN

FOR INFORMATION

Extension — Postei4786

POUR SUITE A CONNER

POUR APPROBATION

POUR SIGNATURE

POUR OBSERVATIONS

POURRIONS-NOUS EN PARLER ?

VOTRE ATTENTION

COMME CONVENU

SUITE A VOTRE DEMANDS

NOTER ET RETOURNER

POUR INFORMATION

COM.6 (2-7S)

/Copy: Mr. A. Rohan

T H E A D M I N I S T R A T O RUNITED NATIONS D E V E L O P M E N T P R O G R A M M E

28 December 1979

Dear Mr. Kulakowski:

On behalf of the Secretary-General I have the honour to acknowledge your tletter of 15 October 1979 dealing with the Industry Council for Development' (ICD) /

v x"I am very well aware of the difficulties that existed in Rome with the

former Industry Co-operative Programme (ICP) and the reasons why the connexionbetween the FAO and the ICP were discontinued. It was exactly for these reasons,and in order to avoid a repetition of the difficulties of this kind, that thematter was discussed and decided at the UNDP Governing Council, which adoptedin June 1979 guidelines for relations of the UNDP with organizations externalto the United Nations system. I am attaching a copy of these guidelines.

You will see that the UNDP Governing Council has established very clear anddefinite parameters which are designed to additional technical and financialresources to developing countries. One of the cardinal features of these guide-lines is that any request for assistance from an external organization mustoriginate from a Government acting either directly or through UNDP. There isno possibility of any external organization inviting itself or having anypresence in any UNDP-financed project unless the Government concerned specifical1"so requests. We are satisfied that the arrangements now proposed will enabledeveloping countries to draw on resources additional to those in the UnitedNations system and that the United Nations system is fully protected againstany such external organization exercising a 'decisive influence within theUnited Nations'.

UNDP's interest in working with organizations external to the United Nationssystem includes organizations in the labour, scientific and educational fields.We have now embarked on the necessary preparatory work in order to expand theUNDP contacts with institutions and organizations in these fields, other thanthose linked to transnational corporations. It is for this purpose that I willbe delighted if the World Confederation of Labour could become also a co-operatingorganization with the UNDP. At this stage, the only step that will be necessarywould be for the World Confederation of Labour to indicate that it is in agree-ment with the guidelines adopted by the Governing Council, and thereafter we candevise and establish concrete paths of co-operation between both of us. If you

Mr. Jan KulakowskiSecretary-GeneralWorld Confederation of Labour50, rue Joseph ll-B-1040Bruxelles, Belgium.

Mr. Jan Kulakowski - 2 - 28 December 1979

agree, I will be happy to ask the Officer responsible for these activities toget in touch with you or with an Officer of the World Confederation of Labourin order to determine the ways and means by which we can confirm the modalitiesof co-operation between our organizations. We would also like to discussconcrete projects in which this co-operation can be given, in practical terms.

I hope to hear from you soon.

sinceifely,

Bradford Morse

."fwHEADQUARTERS : 5O, RUE JOSEPH II - B~- 1O4O BRUXELLES .- BELGIUM

TEL. : 217.63.37 - TELEGRAMS : MUN DO LABOUR BRUSSELS. '

'• -I : '\\Wi Kurt Wo£dheim - < ?'/ f i ' f , United Motion* Secretory GeneAal

?''••?• -, Wew York 700/7 USA '

DATE 15th October 1979 ,,yr; ^ ^y. cc~J/

R EF.

REF.

By a:letteA doted Sth May, 19 7.^ we addressed you to express our '• .: •satisfaction abdut~W7~~Sa3uffla,~lJZre.ctor General aft the, FAO, having put (an end to the. "indu*tAial co-operation pro gramme"worked out by some hundredmultinational corporation*, together with the. FAO. - . , •

We asked you to be watchful in order to pre.ve.nt *uch programmer &rom beingcarried on within the. United Nation* agencies, and we. al*o added that, in oaropinion, public, national or international institution* are. too ofiten *hut in -, yor imbued with economic and financial intere*t* which ore. irrelevant to *ocialdevelopment. ' ' • .;:' • ' . ' * - \ \ - ? • • , - ' • • . \ ' . . • " • • . . ' : ' • • . . • ' ' ' .

We know that.thif> oêniive'o'tJ'the. multinational corporation* to e.nteA into the. ;Ûnited Nation* *y*te.m i* *till going on even i^S, up to now, tLLs *trate.ay ',' '•y.'"nos not been 4acce64/ju£, notably during the. 25th *eA*ion o& the. hdmini*teAingCouncil o& the. UMPP. • v ^ > , / , • • ; ' - • ' • ; : ; - j . • • ( ' V ' J i , \ ' . : ' • • • , > " - • . . '

a motteA o<{ <5act, we aAe veAy worried about the f$act that o new organism ..been Banded in PecembeA 797S, the Indtt6tîo£ development Council ( I P C ) .agency look*' purely "philontropical" and, in &act,.it gather* the. hundred

.--^.national* or *o which hove alre.ady pe.r*i*te.d at the. UMESCO. ' • • - . ; ' . 'These corporation* ceAtainly intend to,secuAe o decisive in{,lue.nce. within the.'

Nation*, where, the large, number'o{, technical assistance proje.ct* show' _ ,o& substantial, benefits., We fenow that a dAa^t agreement, which explain* .;.,

;the_ c.o££a^)tatipn mea^^.beêe.njthe.^jpc^jind^ the. 'UWPP, has been distributed by ^ . - . .,'tfie. TiJC"among the"membe/L-States. ~Jhi** pAo7ect"cleaXcy "indicates the author*1 inten-pticnis : to se££ technology to. the ThiAd World and to .act so that the "United ;

;; ;(Natio us -system can have AecouAs'e to 'every industrial milieu competence". y.Ar-y ' i; ••

examination oi< the 'practices which aAe in cuAAent use in certain United n f ^ ; i yves that evil alre.ady goes deep. As a matieA o^j |oct, : y,,;. 7 •technicol-^meetings •o/) United Nation* agencies, 'it'grows -cnto , ;

the goveAnmental delegations, ôr example ôm the United States,-'p'.la., Japan, EuAopeon countries and &rom ceAtain Third World countries; -are . '" ' ' , ' '•".•up o^ OiJiJicials ijrom the business milceu {multinational corporation* pi the.,-, ;

lêatov p^tuata banks, commodity exchanges, etc.). / ; , - • , ' ' / . • • .;;v.';^ r.H^t'^'v^^7 V \!

•V";; '^'-v! - . - • • • ' / -V; / • ^,:.;.^;:/;Voj;•.//v;Â•,;^?:.^§^;•^3t^,; • * . - . . . • • •>":• ' . - , / - v " • ^ .('.-;:.::f ;^-lf:r!.:'- -• ;" ' -::'-r :'fyn&}&

'*3fa-$%&&$4K ; • ' - ' . ' - , - ' • . ' - - . . - • - • ; - ; • ' - ' • ? " • . • : • . ' . - . - . . . ; - . . , ; . y ^ f , * - , {:J;S.S1iai;- ;- » • ' - ' • • ' • ' -- " ' . - - ' • ' • ' • - i „ , ' ; _ ; j .; • : "'• ' '' ' y . ' • ' - " ' ' : y- ' *• ' ' . k .î

havlng consultative status/with the International Labour Organization, the Economic and Social Councllj/,v|-.?

agenccei

haA been the. ca*e. at the. Unite.d Nation* Convenience &OA cocoa, which haA--•^•' fie.ce.ntly been taking place, -in Geneva, &Aom 16th July to 2nd AUguAt. ThiA being

AO, Ahould one. be. AuApAi*e,d that theAe. negotiation* have. ended -in fiai&uAe. ?How iA it poAAible., in thue. ciAcumAtanceA, to Ae.ach AatiA&actoAy agAe.ejne.ntA,

;— '... moAe. &Ape.cially £OA the. Amall pAoduceAA, paAticulaAly o& the. ThiAd WonJLd, andthe.

We con^-ideA that that iA lak&ie. asie. the. main and the. /iea£ êaôni accountable.faoti the, di^tcuJLtieA to canAy out a new economic and Aociat ofide.fi whtch wouidbe. âifieA and mole, zquitabie., 04 wel£ u ôfi the. ove.x.all âUjjJie. ofa the. twolatent de.cadeA de.ve.lopme.nt Atfiate.gtu. Whtch cAe.dib<iLity w-iti we be, attowe.d togftant to the. new de.ve2opme.nt AtA.ate.gy, pfie.pate.d by the. Unite.d Nation*,

afie. ptiomote.d and attowid by membeA-StateA ?

We woa£d tike, to know what the. United Nation* Ae.cfieAaAiat tlu.nkA about thiA.

Awaiting Ae.p£y, we. fie.main,

VOUAA

Jan KULAKOWSK1Ge.neA.at

§

29 November 1979

Dear Mr. Kulakowski:

On behalf of the Secretary-General I have the honour to acknowledge

your letter of 15 October 1979 dealing with the Industry Council for

Development (ICD).

I am very well aware of the difficulties that existed in Rome

with the former Industry Co-operative Programme (ICP) and the reasons

why the connexion between the FAO and the ICP were discontinued.

It was exactly for these reasons, and in order to avoid a repetition of the

difficulties of this kind, that the matter was discussed and decided at

the UNDP Governing Council, which adopted in June 1979 guidelines for

relations of the UNDP with organizations external to the United Nations

system. I am attaching a copy of these guidelines.

You will see that the UNDP Governing Council has established very

clear and definite parameters, which we hope will eliminate the repetition

of the FAO experience. One of the cardinal features of these guidelines

is that any request for assistance from an external organization must

originate from a Government acting either directly or through UNDP. There

is no possibility of any external organization inviting itself or having

Mr. Jan KulakowskiSecretary-GeneralWorld Confederation of Labour50, rue Joseph 11 - B - 1040Bruxelles, Belgium

any presence In any UNDP-financed project unless the Government

concerned specifically so requests. We are satisfied that the

arrangements now proposed will enable developing countries to draw

on resources additional to those in the United Nations system and

that the United Nations system Is fully protected against any such

external organization exercising a 'decisive influence within the

United Nations'.

UNDP's interest in working with, organizations external to the

United Nations system includes organizations in the labour, scientific

and educational fields. We have now embarked on the necessary preparatory

work in order to expand the UNDP contacts with institutions and organizations

in these fields, other than those linked to transnational corporations. It

is for this purpose that I will be delighted if the World Confederation of

Labour could become also a co-operating organization with the UNDP. At

this stage, the only step that will be necessary would be for the World

Confederation of Labour to indicate that it is in agreement with the

guidelines adopted by the Governing Council, and thereafter we can devise

and establish concrete paths of co-operation between both of us.

If you agree, I will be happy to ask the Officer responsible for these

activities to get in touch with you or with an Officer of the World

Confederation of Labour in order to determine the ways and means by

which we can confirm the modalities of co-operation between our

organizations. We would also like to discuss concrete projects in

which this co-operation can be given, in practical terms.

I hope to hear from you soon.

Yours, sincerely,

Bradford Morse

. 'A CONFEDERATION MONDIALE DU TRAVAIL

L. G £ N £ R A l_ : 6O. RUE JOSEPH II • B - ) 0 4 O Q R U X C L L E S - B E L G I Q U C

T t L. j O2 ia i7 .63 .a7 - A D R C S C E T £ L £ O « I 1 M U N D O L A B O R " BmuXCLI .CS

M. Kurt WALDHETMSecretaire general des Nations UniesNEW YORK USA

DATS

ILe 15 octobre 1979

GF/gs

Monsieur le Secretaire general,

if

Le 8 mai 1978, nous nous sommes adresses a vous pour dire notresatisfaction que M. Saouma, Directeur general de la FAO, ait misfin au "programme de cooperation industrielle", etabli par une centainede multinationales, avec la FAO.

Nous demandions votre vigilance pour empecher la continuation de telsprogrammes au scin des agences des Nations unies et nous ajoutions qu'Snotre avis, les institutions publiques, nationales ou internationalej,sont trop souvent encerclees ou penetrees par des interets econoraiqueset financiers, etrangers au developpement social.

Nous savons que cette offensive des multinationales pour penetrer dansle systems des Nations unies continue, meme si, jusqu1 ici, cette strat

n'a pas roussi, notamment lors de la 25eme session du Conseil de directiondu PNUD.

En effct, nous sommes tres preoccupes par le fait qu'un nouvel orgnnismea L-ti" fondo, en dgiômbrc 1978, le Consoil pour le Dt'veloppement Industriel(GDI), qui so prcscnte comnc purement "philanthropiquo" ct qui, en fait,rcgroupe la centaine de mul tinationales qui a d£j_a sevija L'UNESCO .^L'iiHrntion do cos societies est cc-rtaincniont rl'arquerir une influence d6ci-r, i vo au sein di-i; Nations unies, ou les nombreux projects d ' ass i s tancotechnique promettent de substantiels benefices. Nous savons qu'un projetd'accord exposnnt les mesures de collaboration entre le GDI et le PNUDa ote diffuse par le GDI aupres des Etats-membres. Cc projet precise lesintentions des auteurs : vcndre dc la technologie. aux pays du tiersmondc et f.iirc en sorte que le "systeme des Nations Unies puisse avoir recoua la competence des milieux industriels". "

L'examen dos pratiques courantes dans certaines agences des Nations uniesprouvc que deja le mal est tres profond. En effet, il devient habituel,dans des nc'-j'.oc ia t i ons ou des reunions techniques d'agenccs des Nations unitque les delegations gouvernementa les, notanimc-nt des Etats-Unis, Canada,Japon, de pays europGens et de certains pays du tiers monde, soient compo-sees dc representants des mjj.icux d'affaires (sccietes multinationales du

.V secteur, banques privees^bourses de* matieres premieres, etc.).

v*#

C. M. T. - W.V. A. - W. C. L. REF.

* / * • •

Cela a etc le cas a la Conference des Nations unies pour le cacao qui vient de sctcnir a Geneve, du 16 juillet au 2 aout. Est-il etonnant , dnns" ces conditions,quc ces nogocia t ioYis sc soicnt terminees par un echoc ? Comment, dans ccsconditions, pout-on arrivcr a des accords satisfaisants, particulierement pour lespetits producteurs, notamment du tiers monde et les consommateurs ?

A notre avis, la se trouvent les principales et vcritables raisons des diffia rcaliscr un nouvol ordre economiquc et social plus juste et equitableglobal des strategics du dcveloppcment des deux derniercs decennies. Qucllecredibilitc pourra-t-on accorder pour la nouvelle strategic du developpement, prep;par les Nations unies, si de telles pratiques sont encouragees et permises par desEtats-membres ?•

Nous airaerions connaitre a, ce sujet, le point de vue du secretariat des NationsUnies.

•*

Dans 1'attente, veuillez agreer, Monsieur le secretaire general, 1'expression denotre haute consideration.

KuTAJan KUlAKOWSKISecretaire General


Walter W. SimonsEXECUTIVE DIRECTOR

821 UNITED NATIONS PLAZA NEW YORK, NEW YORK 10017

TELEPHONE: (212)867-5017 CABLE-INDUSCODEV TELEX: 23 R9 76

CPC Europe Ltd

Tour Louise, Avenue Louise 149, Bte. No. 13, 1050 Brussels, Belgium

WALTHER KNIEP

Walther Kniep is Chairman of the Board and President of CPCEurope Ltd. and an Executive Vice-President and Member of theBoard of Directors of CPC International Inc., Englewood Cliffs,New Jersey, a worldwide manufacturer of food products andother consumer and industrial goods, with sales of around$ 3 bio..

The CPC Europe group, the largest of the four operating groupsof CPC International Inc. and with an area of responsibilitycovering Western Europe, Eastern Europe, the Middle East andAfrica, includes companies in 22 countries. Sales for thefinancial year 1978 totalled over $ 1.5 bio..

Mr. Kniep is a member of the advisory boards of the DresdnerBank, Frankfurt, the Hamburgische Landesbank, Hamburg, as wellas of the West German Federal Office of Agricultural MarketRegulations, and serves on the international advisory boardsof the Chemical Bank, New York, and the Volvo Group, Goteborg.He is a member of the Comite Consultatif to the EuropeanCommission (EEC) (Brussels) and a member of the board ofJNSEAD, Fontainebleau, France.

Mr. Kniep, who is German, after serving four years inthe Ministry "of Agriculture of the Federal Republic ofGermany, joined the CPC organisation in 1950 and wasmanaging director of the Maizena GeselIschaft, Hamburg,untiI he was named president of CPC Europe in 1966. Hewas named a corporate vice-president of CPC InternationalInc. in 1966 and an executive vice-president in 1971.He w-as elected a member of CPC International Inc.'s boardof directors in 1970.

26th September 1979

CPC International Inc/ International Plaza Englewood Cliffs New Jersey 07632

Walther KniepExecutive Vice PresidentandPresident CPC Europe Ltd

Mr. K. WaldheimSecretary GeneralUNITED NATIONS1st avenueNew YorkN.Y. 10017

./.v rs

My sincere thanks to you for taking time from your very r;

busy schedule to meet me and Mr. Simons on 14th September.I greatly appreciated the opportunity to brief you on theprogress we are making. It was also very gratifying tohear of your continuing support for our work. You mayrest assured that we will do everything possible to makeas constructive and concrete a contribution as we can tothe process of development.

As we discussed, I plan to host a reception at the U.N.on 25th October (18.30 - 20.30 hours in the West Terrace)to introduce the new ICD Board to United Nations and U.N.Mission officials. We would be greatly honoured if youcould join us that evening. Mr. Simons will be in contactwith your office.

My grateful thanks once again. I will ensure that you areinformed as the months progress of ICD's activities andin particular of developments in our relationship with theUnited Nations Development Programme.

Yours sincerely,

ChairmanIndustry Council for Development

WK:jwf

CPC Europe Ltd. Avenue Louise 149. Bie 13. 1050 a • ôls. BelQlum. Tolophone 538 60 30

\


August 8, 1979

Mr. Albert RohanDirectorExecutive Office of the Secretary-GeneralUnited Nations HeadquartersRoom 3802ANew York, New York 10017

Dear Mr. Rohan:

I am pleased to send you the attached summary record of ICD'sfirst annual general meeting held in Geneva last month. Iwould summarize the highlights as follows:

1) The Council has achieved its initial organizational,operational and financial goals, with strong supportfrom various governments, as well as the SecretaryGeneral of the UN and the Administrator of UNDP.

2) The "guidelines" recently adopted by UNDP's GoverningCouncil provide a sound working basis for UNDP/ICDcooperation that will also facilitate workingarrangements with other UN system organizations.The symposium with the UNDP Administrator and hisassociates identified a number of priority areasfor cooperative action. Implementation will beginas quickly as possible.

3) A new twelve-man Board of Directors was elected,headed by Walter Kniep, Executive Vice Presidentof CPC International, as Chairman.

4) In addition, sector coordinators and consultantsto the Board were elected. Sector coordinationresponsibilities were reorganized into broader, moreintegrated groupings. This should provide a basisfor all members to participate in Councilactivities.

5) Thus ICD now has a firm foundation for acceleratedgrowth of the membership and expansion of the workplan in agro-industrial, as well as other basic


TELEPHONE: (212) 867-5017 CABLE: INDUSCODEV TELEX: 23 89 76

Mr. Albert Rohan Page 2

development sectors, according to requests fromdeveloping country governments, particularlythrough the UN system.

We were also very pleased that officials of 11 governments(countries represented in our membership) could join us atour annual meeting dinner the evening of 12 July. Theirsupport during the past year has, of course, been a criticalfactor.

Our immediate priority is to translate the symposium resultswith Mr. Morse into concrete action as soon as possible. Inaddition, we will strengthen and expand our cooperative linkswith other United Nations system organizations, particularlyHabitat and the World Bank.

During the week of 15 July, I was able to meet informallywith senior officials at FAO, the World Food Council and IFAD.Several cooperative efforts are underway involving FAO technicalunits, and we shall seek a pragmatic extension of suchactivities.

^L_ i . .j

I would appreciate_anôpportunity to introduce our new ' . .1Chairman^Walter Kniepf"~Eo~€he Se reTaTy-GeneraT~Tn the near ITuture, "anS win contact your office for guidance in tfiTs"

Many thanks for your continuing support.

Best regards,.

Sincerely./? 4J- /)£- /•

"'-

Walter W. SimonsExecutive Director

Attachment

..f >V~Jv-, ^

cc: Mr. W. Kniep

M


FIRST ANNUAL GENERAL MEETING

12-13 July 1979

Geneva

BUSINESS SESSION

SYMPOSIUM SESSION - "Prioritiesfor the Eighties - How CanIndustry Help Make theDevelopment Process MoreEffective?"



First Annual General Meeting, Business Session

14.30, 12 July, 1979

Centre International de Conferences de Geneve

Chairman: Sir George Bishop

Summary Report

Attachments

Annex I ICD Cooperation with United Nations SystemOrganizations and Developing Country Governments(Document AGM 79/1)

Annex II Balance Sheet (Document AGM 79/2)

Annex III Reorganization of Sector Coordination Activities(Document AGM 79/3)

Annex IV Recommendations of Nomination Committee

Annex V List of Participants

Annex VI Agenda

1. Chairman's Opening Address

ICD is based on a concept of government/industry/UN systemcooperation which has evolved through various stages over more thana decade. It was first articulated by FAO Director General B. R. Sen,when he set up ICP in 1966 to provide a channel for dialogue with theleaders of agro-industry worldwide. From that relatively direct andinformal beginning, the idea of involving industry's expertise indevelopment soon found wider expression in operational links withvarious other United Nations organizations and in the refinement oftechniques for cooperation.

In recent years, changing political conditions have, on the onehand, reaffirmed and brought into clear focus the importance ofindustry's role in development. On the other hand, they havenecessitated organizational changes to allow continuing industrycooperation and support for development priorities. With thebacking of the UN Secretary General and the Administrator of UNDP,ICD .has been designed to operate with increased flexibility and effec-tivenes-s under these new conditions. During this difficult transitionalperiod, ICD has also gained increased support from various developedand developing country governments.

Thus, the concept of government/industry cooperation launched inRome 13 years ago has now emerged even stronger in ICD. The

2. '

evolutionary process will continue. The challenges which ICD facesin meeting the expectations of developing country governments andthe United Nations system will require further broadening of theCouncil's work plan and membership; greater availability of industry'sexpertise through ICD; and will test the Council's innovativecapacities in many other exciting ways.

2. Review of Activities

A. Summary Report by the Executive Director - The initial goalsset by the Chairman's Policy Working Group late last year,and confirmed by the membership in February 1979, havebeen achieved. They fall into three categories.

In terms of organizational objectives, ICD has completedits legal establishment as a non-profit corporationoperating globally with headquarters in New York. Theconcept of ICD, in particular its dedication to assistingsocial and economic development, has been clearly formulatedin basic documents like the Prospectus and Criteria forMembership.

The Secretariat is now being expanded to meet demands ofincreasing activities, especially in agro-industrialdevelopment.

An initial goal of 30 members' has been achieved — thereare now 32 members from 18 countries.

In addition, a number of governmental and non-governmentalorganizations have been quick to recognize and support ICD.

Operationally, the Council has established working relationswith UNDP and several other major United Nations systemunits. These will be greatly facilitated by the "guidelines"recently adopted by the UNDP Governing Council.

Contacts with developing country governments during thereview period resulted in one request for ICD assistance —from Lesotho — and possibilities for several others.In addition, cooperation was explored with several privatevoluntary organizations, foundations and bilateral agencies,etc., whose activities complement those of ICD.

During this initial operational phase, ICD's coordinatorshave carried much of the burden for planning and initiatingnew activities in such sectors as agricultural production,seeds, agro-chemicals and housing.

Initial financial goals have also been achieved. Revenuefrom membership fees and the USAID grant provide sufficientoperating funds to meet current and expected obligations,including a modest expansion of the Secretariat. There isalso a sufficient carry-over of ICP funds from 1978 to meetexpected final financial obligations to FAO and UNDP.

B. Relations with United Nations System Organizations andDeveloping Country Governments - The Chairman reviewedthe report on the subject in Document AGM 79/1 (Annex I).

Adoption of the UNDP "guidelines" is historically importantnot only for ICD but for the trend of development thinkingin general. Essentially, the guidelines broaden the baseof resources available for development through UNDP. Theycreate a channel for organizations like ICD to providemanagerial, technological and other kinds of expertisethat supplement and make more effective the use ofdevelopment finance by multilateral organizations. Inso doing, the guidelines also recognize a category of"external institutions" which differ from inter-governmentalorganizations (IGOs) and non-governmental organizations(NGOs) but also have a vital role in supporting development.

The exacting criteria for determining which externalinstitutions qualify for cooperation, together withthe Administrator's annual reporting obligation to theGoverning Council, provide UNDP with safeguards foreffective implementation of the guidelines. Besides ICD,UNDP is expected to enter cooperative arrangements withorganizations in scientific, labor, population and otherfields with development-related expertise.

For ICD, the guidelines will also provide a conceptualframework for cooperative arrangements with otherUnited Nations organizations.

Members were encouraged by the possibilities for concreteaction which the guidelines now make possible. They alsorecognized that top priority must be given to satisfyingdeveloping country governments' requests for ICD assistancethrough UNDP. It was agreed that the Chairman shouldrespond positively to the Administrator's letter of27 June and that implementation of UNDP/ICD cooperationunder the guidelines should begin as soon as possible.

The membership also expressed its satisfaction with theCouncil's initial activities with other United Nationsorganizations and developing country governments asindicated in Document AGM 79/1 (Annex I).

C. Reports and Proposals by Coordinators and Consultants

1) Seeds Industry Development — Mr. Hendrie reportedthat ICD's work in this sector.has expanded as theinternational community has recognized the centralrole which national seed enterprises play in providingfarmers with improved and adapted seed varieties.Such enterprises are a vital — but often weak —link between international agricultural researchcenters, national institutions and farmers.

4.

In April 1979, USAID approved a four-year grant toICD for $825,000 for a Commercial Seeds IndustryDevelopment Project (CSIDP). ICD thus faces asubstantial challenge in helping make national seedsenterprises more effective agents for increasingagricultural production.

The first priorities in implementing CSIDP have beento recruit a Project Director, and to solicit thesupport and involvement of seed companies worldwide.

On the first priority, several excellent candidateshave been interviewed, and appointment of theDirector is expected soon.

On the second priority, seed trade associations havewelcomed CSIDP and offered their support to ICD.The project brochure was distributed among more than700 "participants in the International Seed TradeAssociation (FIS/ASSINSEL) annual meeting inSwitzerland in May. Similarly, in June the AmericanSeed Trade Association (ASTA) provided Messrs. Hendrieand Simons an opportunity to promote CSIDP among the800 delegates to their annual convention in Washington,D.C. The brochure was available to delegates, andmeetings were held with interested company executives.These encouraging responses from industry provide abasis for follow-up action in the months ahead. Thiswill include selection of a Steering Committee of seedcompany executives to assist the Project Director.Assistant Coordinators for North America and Europeare now being sought. Together with Mr. Hendrie, theywill provide the nucleus of the Steering Committee.

CSIDP will eventually assist developing countryenterprises by providing advisory services,individualized training programs, and assistance inpromoting joint ventures and other forms of industrialcooperation.

Mr. Hendrie stressed that the project should not beseen in isolation but rather as a first buildingblock in an overall integrated approach to increasedagricultural production in the developing countries.

2) Agro-chemical Industry Projects — Mr. Maier reviewedhis work on two promising projects. The first is arevision and re-issue of the 1972 UNIDO publication,"Formulation of Pesticides in Developing Countries".His contacts with UNIDO, WHO, USAID, GIFAP andothers have indicated a strong interest in havingthis publication updated and re-issued, as it providesinformation on basic aspects of pesticides formula-tion plant operation and safety in developing countries

5.

USAID have invited ICD to submit a proposal for fundsto revise and re-issue the publication. Some of theoriginal authors are willing to rewrite theirchapters. Possibilities for new chapters have beendiscussed with USAID and others. A proposal will bemade to USAID shortly.

Mr. Maier is also exploring possible training projectson the safe and effective use of pesticides in develop-ing countries. This might be on a regional or nationalbasis. USAID are also interested in this project.

3) Agricultural Machinery — Mr. Powell's report, presentedby the Executive Director, emphasized the parallelactivities being carried out by different UN organiza-tions. They posed the problem of inter-agency coordina-tion and how ICD should best use its resources formeetings and field projects. Mr. Powell's reportemphasized that:

a. FAO has established an expert panel on farmmechanization which has met twice. The lastmeeting was held in Nairobi in May, and waschaired by Mr. Powell. Members of the panel aredrawn from industry, national and internationalresearch organizations, and aid institutions.They serve in their individual capacities. Thisis a constitutionally acceptable approach forFAO to involve industry experts.

The third panel meeting will be held in Londonin December 1979 under U.K. government sponsorship,and will concern the key problem of spare parts.

b. In June 1979, UNIDO held a meeting in Vienna inpreparation for the October Consultation on theagricultural machinery industry. Dr. Boniscontiof FIAT represented ICD at this meeting. He andMr. Powell agreed that the UNIDO approach wasoverly simplistic in its analysis of what must bedone to locate more agricultural machinery industrialcapacity in the developing countries. They alsoquestioned the emphasis UNIDO placed on the majorrole of transnational corporations in this sectorin the future.

c. It was agreed that Mr. Powell and Dr. Boniscontiwould further explore how ICD could assist both FAOand UNIDO efforts. ICD participation in theUNIDO Consultation (Stresa, October 1979) willalso be considered.

4) Housing and Construction Industries — Mr. Stokes hadparticipated in a Habitat regional conference on

6.

housing design and financing in Manila in June, andhis report was presented by the Executive Director.Mr. Stokes was given official delegate status at themeeting as ICD's representative. He made an officialstatement outlining the objectives of ICD, and alsoprovided advice from his own experience, on majoragenda items.

Mr. Stokes recommended ICD now seek an arrangementwith Habitat for cooperative activities. He feltthat the ICD membership could be expanded to includea number of important companies in both developed anddeveloping countries, which have expertise particularlyin low-cost housing relevant to priorities in thissector. He also felt that a meaningful work programcould be established with Habitat. It was agreedthat the Executive Director should pursue Mr. Stokes1

recommendations for early conclusion of cooperativearrangements with Habitat.

3. Membership Development — Report of Chairman of the MembershipDevelopment Committee

The initial ICD membership drive had focused on 88 former ICPmembers. Of this group, 30 companies agreed to become foundingmembers of ICD. Two more companies which were not associated withICP have also become founding members. Eighteen countries arerepresented- in this group.

Discussions of membership development at the second and thirdsessions of the ICD Board emphasized the need to concentratehenceforth on companies beyond the former ICP group, particularlycompanies in the developing countries.

Mr. Kniep felt that implementation of the guidelines for UNDP/ICDcooperation could result in considerably expanded activities insectors other than agro-industry. Also, these guidelines providerecognition of the importance of industry's cooperation indevelopment, which will be a strong selling point for membershiprecruitment in the future. Therefore, Mr. Kniep recommended thatthe Council adopt a systematic approach for identifying andrecruiting companies which are the most important to ICD's activitiesin terms of their capacity for assisting the development process.

A proposed membership development program on this basis shouldbe reviewed at the next Board of Directors meeting.

4. Financial Matters — Report by the Treasurer

The Treasurer reviewed the balance sheet presented in DocumentAGM 79/2 (Annex II). He reported that 23 members have paid their1979 membership fees and that the Council has a reasonable cashbalance to meet obligations foreseen during the remainder of thisyear. There is also a sufficient balance of ICP membership fees tocover expected invoices from UNDP and FAO to liquidate debts withthose organizations.

7.

5. Matters for Decision by the Membership

A. Proposal for Re-organization of Sector CoordinationFunctions — The membership agreed in general with theproposals for re-organizing sectors as recommended inDocument AGM 79/3 (Annex III). This would provide four"umbrella" working groups, i.e. agricultural productionindustries; seeds industry development; food industries;and housing and construction industries. These arevertically oriented groups, each headed by a coordinator.It was felt that subjects that are organized horizontally,such as human resource development, TCDC, etc. should notbe considered sectors in the same sense. Rather, theCouncil could have consultants for such subjects, who wouldbe available to assist both the Board and sector coordinators.

B. Report of Nominations Committee and Election of Board ofDirector Officers and Coordinators -- Mr. Violot presentedthe recommendations of the Nominations Committee asindicated in Annex IV. These recommendations were designedto maintain a geographic and sectoral balance in the Board.The number of directors would be increased from nine totwelve. In addition, the recommendations for coordinatorsfollow the decision to re-organize sector activities intolarger "umbrella" groups, which more accurately reflectthe integrated nature of the Council's membership andactivities. Recommendations for consultants to the Boardwere also presented at this time.

Mr. Schenet made a motion that the membership elect theentire slate put forward by the Nominations Committee,including Council officers. This motion was seconded byMr. Harris. The membership voted unanimously to acceptthe recommendations of the Nominations Committee,with the understanding that terms of office for individualofficers and directors will be decided at the next meetingin accordance with the Bylaws which specify that terms bestaggered to allow the election of one third of theBoard every year.

6. Second Annual General Meeting 1980

It was agreed that the date and location of the second annualgeneral meeting should be coordinated with a major UN meeting,probably the 27th session of the UNDP Governing Council (2-30 June1980, Geneva).

7. Tribute to Sir George Bishop

The membership strongly supported statements by Dr. Ramaer andMr. Kniep praising the outgoing Chairman for his dedicated leader-ship which, over the past two difficult years, has successfullybrought about the evolution from ICP to ICD with the strong supportof governments, the UN Secretary General, the UNDP Administrator,and the leaders of many companies.

At the dinner that evening, Dr. Ramaer presented Sir GeorgeBishop with a gift from the membership.

Agenda Item 2B AGM ?9/1 - - ^

Annej; I

Industry Council for Envelopment

ICD COOPERATION WITH UN SYSTEM ORGANIZATIONS

AND DEVELOPING COUNTRY GOVERNMENTS •

I. Cooperation with UN System Organizations

A. UNDP — On 27 June, the UNDP Governing Council adopted the"Guidelines Concerning the Relationship Between the United NationsDevelopment Program and External Institutions" (attached), whichwill now provide the basis for UNDP/ICD cooperation.

These guidelines, which incorporate several minor editorialchanges from the text previously distributed to ICD members, wereadopted for a three-year trial period, .after which a detailedevaluation will be made. In the meantime/ the Administrator ofUNDP will report annually to the Governing Council on the resultsof cooperation with ICD and other organizations covered by theguidelines.

The Administrator's letter of 28 June to the Chairman ofICD (.attached) confirms that UNDP/ICD cooperation will now beformalized under the terms of the guidelines. This will allowus to institutionalize and expand our assistance to developingcountry governments through cooperation with UNDP. The ICDSymposium on 13 July/ which Mr. Morse will lead, will provideadditional guidance for expanding this cooperation.

B. UNIDO — Cooperation has begun on an ad hoc basis. UNIDOhas invited ICD to participate in two global industry consultations,and other possibilities for cooperation are under review.Dr. V. Bonisconti of FIAT represented ICD at the preparatory :meeting for the Global Consultation on Agricultural MachineryIndustry (5-8 June, Vienna). Follow up action will be proposed.

Dr. Ostermann and Mr. Violot were appointed by the Boardto assist with an overall approach for UNIDO/ICD cooperation.

C. World Food Council (WFC) — Initial contacts between theExecutive Directors of WFC and ICD have identified three areasfor possible WFC/ICD cooperation:

1. .Sector planning for national food investment strategies.2. A food investment strategy for Honduras.3. Industry advice on major policy issues.

On the latter point, ICD will seek ways to assist WFC'sforthcoming study on industry's role in food production.

821 UNITED NATIONS PLAZA NEW YORK. NEW YORK 10CT,7

TELEPHONE: (212) 857-5017 CABLE: INDUSCODEV TELEXr238976

AGM 79/1 8A.

D' Habitat — John Stokes represented ICD at a RegionalHabitat Conference on Housing, Financing and Management in Manilain June. The response indicated good potential for ICD activitiesin the housing and construction industries sector, particularly throughcooperation with Habitat. These positive results will be followed upto conclude working arrangements with Habitat and to develop recommenda-tions for membership expansion and appropriate ICD activities.

E; World Bank Group — Initial contacts between the ICD Chairmanand the Executive Director with World Bank officials have identifiedseveral areas of mutual interestf particularly with IBRD and IFC.Arrangements for cooperative activities will be concluded in the nearfuture.

P. UN Capital Development Fund (CDF) — The Fund considers ICD anobjective source of industrial expertise and advice to help evaluatethe technical and economic viability of project proposals, particularlyin agro-industrial and related sectors. Under this arrangement,, ICDmakes expertise available to CDF through an informal expert panel,composed primarily of Sector Coordinators. Such expertise has alreadybeen provided to help evaluate three project proposals.

G. FAQ — Cooperation so far has been on an informal basis.Mr. H.A.R. Powell participated in two sessions of the FAO Expert Panelon Farm Mechanization. There have been various other ad hoc contactswith FAO staff officers related to specific project developments.

Considering the expansion of ICD's cooperation with other UNorganizations, and the adoption of the UNDP guidelines, efforts tofurther institutionalize cooperation with FAO may now be advisable.

II. Cooperation with Developing Country Governments

Cooperation so far has been primarily through work with UNDPand other UN system organizations, for example:

A. Lesotho — On the recommendation of UNDP and CDF, thegovernment of Lesotho has requested ICD's assistance in evaluating thepotential economic and social viability of fruit and vegetable process-ing and marketing. The project is strategically linked with othermajor development objectives, including small farm production, employ-ment,, export marketing and promotion of foreign investment. TheExecutive Director visited Lesotho in May with Nestle's Director ofInternational Agricultural Research, and a country mission is now beingplanned.

B. Other Governments — UNDP and ICD staff officers have begunexploring other countries wherein ICD services might be valuable todevelopment efforts, particularly those included in UNDP countryprograms. Such countries include: Sri Lanka, Indonesia, Papua/NewGuinea, Honduras and Guatemala.

UNDP/ICD cooperation under the new guidelines will allow amore systematic approach to working with UNDP Regional Bureau staffand resident representatives.

9.

Annex I

GUIDELINES CONCERNING THE RELATIONSHIP BETWEEN THE UNITEDNATIONS DEVELOPMENT PROGRAMME AND EXTERNAL INSTITUTIONS

1. There are a number of resolutions of the United Nations General Assemblyvhich emphasize the importance of facilitating developnent co-operation "bymaking available additional technical and financial resources.

2. As one action in response to these resolutions, the Administrator hasdetermined that there should "be available, for general information and use,guidelines vhich establish the "basic conditions which must "be raet by institutionsand organizations external to the United TJations, including educational,industrial, labour, scientific, technical and trade institutions, organizationsand associations, and similar organizations (hereinafter called Co-oper&tingOrganizations) -to provide development inputs in collaboration vith U1IDP.

3. Any operational agreements concluded vith individual Co-operative Organizationsin respect of specific assistance activities vill be subject to the followingguidelines:

(a) Co-operating Organizations must be non-profit and non-political.Membership may be conrposed of individuals or undertakingsvhatever their form of organization or ownership and may bedrawn frora developed countriess developing countries, or both.

(b) For any proposed plan of assistance, a Co-operating Organizationinust satisfy the Administrator that its objective is to assist"the country or countries concerned in achieving their economicand social goals and not to promote the particular interests ofany members vhich may participate in activities carried out incollaboration with UBDP.

(c) The objectives of the organizations and the activities vhichthey carry out must be, in the judgement, of the Administrator,consonant with those of the Charter and objectives of theUnited JHations, including ILO conventions.

(d) The Administrator must be satisfied that the membership ofCo-operating Organizations is not subject to unreasonable ordiscriminatory conditions.

10.

(e) The services of the Co-operating Organisations should be availableeither directly to the developing country, at the Governmentrsdirect request, or by request of the interested Government through.the United Nations development system, vith the decision as towhich method should "be used being left solely to the determinationof the developing country concerned.

(f) In any project or progranae of assistance* Co-operating Organizationsvill act only in agreement vith an interested Government and infull harmony vith Its national priorities. Where appropriate andwhen requested by the Government concerned, Co-operating Organizationsvill utilize the IfiSDP country prograncnie as a frame of reference.The agreed services provided and activities undertaken through thefacilities of UNDP must be carried out in full accordance vith

• IMDP's standing policies and procedures.

(g) Services provided by Co-operating Organizations under these• guidelines may be either at their own expense in the case of those. organizations vhich are in a position to meet such expense, orthrough, an appropriate allocation from the recipient's IndicativePlanning Figure, or through, other. UNDP resources if necessary.

(h) Reports, recommendations or findings vhich. Co-operating Organizationsnay prepare vith regard to activities carried out vith UNDP underthese guidelines may not be published vithout the consent of theGovernment or Governments concerned and UNDP.

(i) Consultations shall take place as required between Co-operating .Organizations and UNDP through theirauthorized representativeson aspects of activities carried out in collaboration vith UTJDP.

(j) The publications and other documents of Co-operating Organizations• vill show in suitable form that they are operated as independent,

self-funded organizations vith no linkages to UTTD? other thanthose derived from any programmes or projects carried out pursuantto these guidelines.

(k) The general conditions required by UNDP for activities carried -out by subcontractors (see UfrDP/ADM/HQTRS/210/Add. 1 of 22 October1975) vill apply to activities carried out by Co-operatingOrganizations under these guidelines unless otherwise agreedthrough specific arrangements.

11,

SfftiV-V^C

THE A D M I N I S T R A T O R

UNITED NATIONS D E V E L O P M E N T P R O G R A M M E

28 June 1979

Dear Sir George:

I am pleased to advise you, as Chairman of the IndustryCouncil for Development, that the UNDP Governing Council atits twenty-sixth session, has adopted the "Guidelines Concerningthe 'Relationship "between UNDP and External Institutions" whichI understand Mr. Simons has sent to you. These guidelines willbe in effect for a three-year trial period. During that period,I will report annually to the Governing Council on the resultsof our implementation of these guidelines. There will "be adetailed evaluation of our experience at the end of the three-year period.

It is my intention to use these guidelines to expand themagnitude and range of development resources available todeveloping country governments through the UN system. I recognizethat the management, technological and other industrial expertiseavailable through ICD could be an important resource in helpingus to make the development process more effective in the years tocome.

I believe these guidelines provide an appropriate basis forcooperation between UNDP and ICD. In my judgment, ICD meets thecriteria for such cooperation outlined in Item 3 of the guidelines.

Therefore, if your Board agrees, I will inform my headquartersstaff and Resident Representatives that ITNDP/ICD cooperation hasnow been formalized under the terms of the guidelines. Thereafterwe will establish routine linkages between our secretariats so thatactive cooperation may be expanded as quickly as possible.

With warm personal regards, I am,

Yours sincerely,

Bradford Morse

Sir George Bishop99 BishopsgateLondon EC2M 3XDEngland.

AGM 79/212.

Annex II


BALANCE SHEET(As of 30 June, 1979)

ASSETS

Cash in Bankin Petty Cash

Furniture & FixturesAccounts Receivable i/Receivable from Employees

LIABILITIES

Owed to ICP

$155,395500

7,87967,500

110

TOTAL ASSETS

$ 89,500

TOTAL LIABILITIES;

FUND BALANCE;

$231,384

$ 89,500

$141,884

REVENUE

STATEMENT OF CHANGES IN FUND BALANCE(From 3 January'to 30 June 1979)

3/Membership Fees £

EXPENSES

Salaries & Employee Benefits:

Full-timeTemporary

Operational —/HospitalityTravelMiscellaneous

$ 66,8005,708

17,8932,6333,9841,098

TOTAL;

FUND BALANCE;

I/ Outstanding membership dues for 19792/ Includes three 1978 membership dues received in~ New York, plus $70,000 transferred from London.3/ 32 members at $7,500£/ Represents rent, telephone, supplies, etc.

821 UNITED NATIONS PLAZA NEW YQ3K. NEW YORK 10017

TELEPHONE: (212) 857-5017 CABLE: INDLJSCODEV TELEX- ?.T RQ 7fi

$240,000

98,116

$141,884

Agenda Item 5B AGM 79/3 13,

Annex III


REORGANIZATION OF SECTOR COORDINATION ACTIVITIES

Sector Coordinators were established as part of ICD's organizationto assist in planning and implementing activities related to majortechnical or industrial areas represented in the membership, or newareas of concentration within the Council's work plan. A seniorofficial of a member company is elected to each Sector Coordinatorpost for two years. At the invitation of the Chairman, Coordinatorsreport to the Board, but do not have voting privileges.

At its second session, the ICD Board requested a review of thescope and organization of Sector Coordinator activities, with aview toward consolidating certain agro-industry sectors andconsidering new Coordinator posts to accommodate major newchallenges.

The Sector Coordinators originally elected by the membershipfollowed the lines of previous ICP working groups: (

Sector

Farm Mechanization

Agrochemical Industries

Seeds Industries

Food Loss Prevention

Dairy Industries

Housing and ConstructionIndustries

Human Resource Developmentand Training

Coordinator

H.A.R. Powell

A.J. Maier

J.I. Hendrie

E. Ostermann

J.B. Jensen

J.G. Stokes (established bythe Board at its secondsession, 4 May, 1979}

N. Schenet

The following reorganization is proposed to more accuratelyreflect ICD's technical resources and the integrated nature of itsactivities:

1. Agricultural Production Industries — Incorporating landand water development; farm mechanization; fertilizers,


-fTICn 867,5017 CARI F-IWDI IVDnFW TFI FY-91 HO7R

AGM 79/3 14-

pesticides and other agricultural chemicals; and storage.Animal production and health might come under a separateSector Coordinator when there are sufficient activitiesin this area.

2. Seeds Industry Development — Because of the major USAID-funded project in' this area, a separate Sector Coordinatoris warranted.

3. Food Industries — Incorporating food processing; distribu-tion and marketing; dairy, meat, fats and oils, vegetables,sugar, cereals and other major foods; and nutrition.

4. Housing and Construction Industries.

5. Human Resource Development and Training.

The membership may also wish to consider establishing Coordinatorsfor subjects which are horizontally rather than vertically organizedto meet new challenges, for example:

6. Technical Cooperation Between Developing Countries (TCDC).

7. Science and Technology — Incorporating various aspects oftechnology transfer; industrial research; advanced technology;as well as possible new activities arising from the resultsof the UN Conference on Science, Technology 'in Development(UNCSTD).

15. '

Recommendations of the Nominations Committee Annex IV

BOARD OF DIRECTORS

Chairman; Mr. W. Kniep, President, CPC Europe Ltd., Brussels

Vice-chairman; Dr. J.C. Ramaer, Deputy Managing Director, N.V.Philips* Gloeilampenfabrieken, Eindhoven

Vice-Chairman; Mr. R. Violot, Directeur des Recherches Economiques,Compagnie du Nord, Paris

Treasurer; Mr. J.F.P. Tate, Director, Tate & Lyle Ltd., London

Assistant Treasurer; Mr. G.F. Landegger, President, Parsons andWhittemore Inc., New York

Mr. S. Babar Ali, President, Packages Ltd., Lahore

Dr. C.L. Angst, Executive Vice-President, Nestle S.A., Vevey

Mr. M. Belporame, President Directeur ge'ne'ral du Groupe SODETEG,Thompson-Brandt - Le Plessis-Robinson

Sir George Bishop, Director, Booker McConnell Ltd., London

Mr. J. Erbe1, Director, Unilever, Rotterdam

Mr. J.B. Jensen, Managing Director, Danish Turnkey Dairies Ltd., Aarhus

Mr. K. Kazareczki, General Manager, Agrober, Budapest

CONSULTANTS TO THE BOARD

Agro-Chemica'l Industries: Mr. A.J. Maier

Developing Country Industry Membership: Dr. O. Ballarin, Member ofthe Board, Eucatex S.A.,Sao Paulo

Human Resource Development Mr. N. Schenet, Corporate Staff Vice-and Training: President, IMC Corporation, Northbrook

16

SECTOR COORDINATORS

Agricultural Production Industries; Mr. H.A.R. Powell, Chairman,Massey Ferguson Holdings Ltd.,London

Food Industries: Mr. H. Kohlhaas, President, International Division,Kraft Inc., Glenview

Heavy Industries; Dr. E. Ostermann, Director, Voest-Alpine A.G.,Linz

Housing and Construction Industries; Mr. J.G. Stokes, Vice PresidentInternational, AutomatedBuilding Components Inc., Perth

Seeds Industry Development; Mr. J.I. Hendrie, Shell InternationalChemical Co. Ltd., London

SECRETARIAT

Executive Director; .Mr. W.W. Simons

Staff Assistant: Ms. V.K. Gamrasni

Headquarters Office: 821 UN Plaza, New York, N.Y. 10017.Tel: (212) 867-5017Telex: 23 89 76Cable: INDUSCODEV

17.

Annex V

First Annual General Meeting

Business Session

12 July 1979



Members

Dr. O. Ballarin, Member of the Board, Eucatex S.A., Sao PauloMr. J.R. Bel, Inggnieur en Chef, SODETEG, Le Plessis-RobinsonSir George Bishop, Director, Booker McConnell Ltd., LondonMr. V. Bonisconti, Fiat Holdings S.p.A., TurinMr. S.H. Doggett, Deputy Director of Administration, Cyanamid

International, WayneDr. J. Erdei, Commercial Director, Tesco (Agrip Group of Companies)Mr. H.F. Harris, Vice-President, CPC International Inc., Englewood

CliffsMr. J.I. Hendrie, Shell International Chemical Co. Ltd., LondonMr. Y. Huttunen, Executive Vice President, Kemira Oy, HelsinkiMr. T. lino, Chief Representative in Europe, Sumitomo Chemical Co. Ltd.,

DusseldorfMr. J.B. Jensen, Managing Director, Danish Turnkey Dairies Ltd., AarhusMr. W. Kniep, Chairman, CPC Europe Ltd., BrusselsDr. Ch. Merieux, President, Fondation Marcel Merieux, LyonMr. G.R. Moore, Director of International Marketing, Stauffer Chemical

Company, WestportDr. E. Ostermann, Director, Voest-Alpine AG, LinzDr. J.C. Ramaer, Deputy Managing Director, N.V. Philips' Gloeilampen-

fabrieken, EindhovenMr. C. Sacchi, Director, Research and Studies Division, Fiat Holdings

S.p.A., TurinMr. N. Schenet, Corporate Staff Vice President, International Minerals

and Chemical Corp., Korthbrook

18,

Members (continued)

Mr. A. Simon, Staff Assistant to the President, CPC Europe Ltd.,Brussels

Dr. J. Szabo, Director, Agrip, BudapestMr. J.F.P. Tate, Director, Tate & Lyle Ltd., LondonMr. A.A. Thornbrough, Chairman, Massey Ferguson Ltd., TorontoMr. P. Vilgrain, Directeur General, Grands Moulins de Paris, ParisMr. R. Violot, Directeur des Recheirches Economiques, Compagnie du

Nord, ParisMr. W. Zimmerman, Assistant Managing Director, Chemap AG, Mannedorf

Consultant to the Board

Mr. A.J. Maier

By special invitation

Mr, Hutcheson, Irish Dairy Board, Dublin

ICD Secretariat

Mr. W.W. Simons, Executive DirectorMs. V. Gamrasni, Secretary

19.

Annex VI

First Annual General Meeting, Business Session

14.30, 12 July, 1979


Chairman: Sir George Bishop

Provisional Agenda

Item Document

1. Chairman's opening address

2. Review of activities:

A. Summary report by Executive Director

B. Relations with UN system organizations AGM 79/1and developing country governments

C. Reports and proposals by coordinators

D. Other activities

3. Membership development - Report of chairmanof membership development committee

4. Financial matters - report by treasurer AGM 79/2

5. Matters for decision by the membership

A. Report of Nominations Committee andElection of Board of Directors and officers

B. Proposals for reorganization of sector AGM 79/3coordination functions

C. Other proposals

6. . Second annual general meeting, 1980 - dateand location

20.

First Annual General Meeting, Symposium Session

0900, 13 July, 1979


Chairman: W. Kniep

Moderator: Bradford Morse, UNDP Administrator

Summary Report

Attachments

Annex I List of Participants

Annex II Agenda

SUBJECT: Priorities for the Eighties — How Can IndustryHelp Make the Development Process More Effective?

OBJECTIVE:

To explore development trends and priorities and determine directionsfor ICD action, particularly through cooperation with UNDP and otherUN system organizations.

ICD was honored to have the participation of Mr. Morse and his seniorassociates, as well as well as Mr. A. M. A. Muhith, Secretary,Ministry of External Resources from Bangladesh. These participantsrepresented various executive functions in the development processand provided valuable insights into the possibilities for UNDP/ICDcooperation.

1. Trends in Development Thinking and Planning

The third development decade begins next year, with prioritiesand strategies that differ markedly from those of 30 years ago. Inanalysing "priorities for the eighties", Mr. Morse noted that majorchanges in the world community — including a trebling of the numberof sovereign nations — has led to increasing interdependence andto demands for a "new international economic order" (NIEO) — todemands for greater social and economic equity among nations. Theunderlying constraint to development today is the need to createquickly the policies, institutional and human resource base for sucha new order in ways that will be beneficial to both developed anddeveloping nations.

This true interdependence will require major structural changesin the relations between nations, including, inter alia, changes intrade patterns, the flow of real resources, the location of industrialproduction capacity, and in food security — which still followpatterns that evolved after World War II.

21.

To speed such changes, development planners today place highpriority on increasing the ability of developing countries to beself-reliant, both individually and collectively. Mr. Morse stressedthat the creation of indigenous human and institutional capabilityis "an imperative first step" toward such self-reliance. The"trickle down" and other theories of technical cooperation of thepast decade have had disappointing results. Although they haveprovided substantial quantities of financial and material inputs,as well as thousands of experts and fellowships, they have failedto create the capacity among developing country officials themselvesto really take over the development process.

A major part of the answer is improving the skills and abilitiesof developing country managers, technicians and experts to absorb,adopt and apply the vast storehouse of existing knowledge aboutdevelopment and technology. The history of economic growth inWestern countries, although it may not be relevant to developingcountries, shows that "improved skills" are the keys to progress.At least three-quarters of the gains in economic and socialdevelopment taking place today are attributable to non-material inputs.

Recognition of this factor will have a major influence on thefuture trend of technical cooperation. It will place a highpriority on the development of local institutions, of local manage-ment and technological skills and other capabilities necessary fordevelopment to become self-sustaining.

This trend will also provide a solid basis for increased supportby industry through ICD. Industry's expertise in management, technology,distribution, research and science, and its ability to operate venturesefficiently, are important resources which, through UNDP/ICD cooperation,can help make the use of financial and material development resourcesmore effective.

2, The Role of UNDP

UNDP operates within this framework as the world's largestmulti-lateral aid effort, with activities "in every aspect of thehuman adventure". Voluntary contributions from donor nations toUNDP now exceed $681 million annually, making this organizationthe major financial and operational arm of the United Nations system'sdevelopment effort. In addition, developing countries themselvesnow allocate some $700 million to UNDP projects and programs.

Individual country development programs, designed by governmentsfor 3-5 year periods, are the primary focal point for UNDP support.Both UNDP and the UN specialized agencies assist governments inpreparing and executing these country programs. In addition, UNDPfinances regional, non-regional and global programs.

UNDP resident representatives are now located in 109 countries;new representatives will be assigned to China and the DemocraticPeople's Republic of Korea in September. These representatives aregenerally the senior UN development officials and have a key

22.

function in assisting governments with the planning and implementa-tion of development activities.

3. Industry's Role in the Development Process — Implementingthe Guidelines for UNDP/ICD Cooperation

The Symposium discussed and reached broad general agreement onthe following principles and possible areas for cooperation. Thesewill be further refined by UNDP and ICD Secretariats for finaliza-tion in a plan of action acceptable to both the Administrator andthe ICD Board. Implementation will take place as quickly aspossible.

A. All UNDP/ICD cooperative activities must be based upongovernment requests. UNDP will inform its staff andgovernments of the resources available through ICD, butthe initiative for requesting ICD assistance must comefrom governments.

B. Governments are responsible for determining nationaldevelopment policies. They also have the ultimateresponsibility for determining priorities and forallocating resources accordingly.

The UN system can only advise governments on the optionsavailable. It must respect the right of the governmentsto make their own decisions, and even to make mistakes;however, the UNDP must also record its reservations whenit disagrees with government thinking.

C. UNDP and ICD have a common priority concern in a practicalconcept of project "viability" that will optimize botheconomic and social benefits for developing countryrecipients.

The continuing debates on alternative development approaches,including issues involving capital versus labor-intensiveindustries, "appropriate technology", etc. are important.But, the actual choice of options must usually be madeon a country or even location-specific basis, taking intoaccount social and cultural conditions and nationaldevelopment objectives.

Industry has the knowledge and innovative capacity to helpgovernments design industrial arrangements which willsatisfy both economic and social objectives. However,in so doing, governments should have a realistic understand-ing of the "trade-offs" involved, and the incentivesnecessary for success.

D. Through UNDP, governments may request ICD's assistance indevelopment planning, particularly in the preparation ofUNDP country programs. Industry expertise and advicecan be related to sectoral or overall problems and to

23.

development options. ICD country missions and expert taskforces can be organized to review and advise on key problemareas, and in other ways to assist the decision-makingprocess.

E. UNDP may request ICD assistance in various evaluationactivities, such as project design and draft texts of broadsectoral studies, such as the current ones on ruraldevelopment and agricultural training.

F. UNDP may request ICD participation in technical levelconsultations at headquarters or field locations. Industryexpertise could contribute to the assessment of ongoingregional studies (such as the one on production of capitalgoods in Latin America), and provide expert views on technicaland economic surveys (such as the current one on renewablenon-conventional energy sources in Latin America). ICDcould also help review reports of such activities andparticipate in related technical symposiums.

G. ICD could assist UNDP in various technology transferactivities, including:

- Providing information on trends in research and develop-ment, as well as new technology developments.

- Organizing "state of the art" reviews of major technologyfields for UNDP staff.

- Helping to plan and execute pilot projects to apply newtechnology at the regional or national level.

- Evaluating the results of such pilot projects and judgingtheir applicability to other developing country situations.

- Assisting the evaluation of the "appropriateness" ofnew technology for developing countries.

- Encouraging industry to give priority to research anddevelopment and manufacturing efforts for technologyin developing countries.

- Enlisting the active participation of developing countrybusinessmen in TCDC projects for technology transfers.

- Assisting in the follow-up to UNCSTD, particularly inefforts to help developing countries create and managenew technological and industrial capacity.

H. Human resource development is another major priority areafor possible UNDP/ICD cooperation. Industry expertisecould be made available for:

- Evaluating proposed training projects and reports oftraining programs.

24,

- Designing projects.

- Advising on training methodologies and the productionof training materials.

- Involving company training facilities and materials incooperative activities.

- Helping identify locally trained experts in response toUNDP/government requests (it is not practical to preparelists of such locally trained individuals, because theybecome obsolete quickly and may appear to be discriminatory)

- Promoting industry support for local training andmanagement development institutions, including fellowshipprograms.

I. ICD could be an acceptable impartial channel to provideresearch, scientific and technological expertise relatedto new development priorities, such as non-conventionalenergy resources and high-risk exploration for strategicminerals and other natural resources.

J. ICD could support the new UNDP Investment Development Officein several ways, including:

- Helping promote priority government investment projects,especially those that involve private or public sectorindustry investors.

- Assisting in evaluating investment proposals.

- Bringing the ideas of potential industry investors tothe attention of governments through the Office.

K. As the UN system's primary financial and operational arm,UNDP can help reduce overlapping and duplication ofdevelopment efforts by UN agencies and other organizationswhich also seek industry's cooperation through ICD. UNDP'snew "institutional memory" and the inter-agency task forceworking with UNDP in New York can provide valuable assistancein this regard.

L. In UNDP's decentralized system, Resident Representativeshave responsibility to provide, as requested, advisoryservices to governments. ICD might provide assistance toResident Representatives in this regard, including:

- Evaluation of project proposals.

- Evaluation of project alternatives.

- Monitoring of project results.

- Guidance on systems aspects of project design.

25.

ICD might also sponsor workshops for regional meetingsof resident representatives on common technical oreconomic concerns.

M. In selected situations, ICD might provide special expertisefor joint international efforts organized by UNDP (thecurrent situation in Nicaragua provides a case in point).Such expertise would complement that available from the UNand other international sources for planning and implementingrehabilitation efforts.

N. Efforts to promote greater national self-reliance are beingstimulated by innovative development approaches, such asself-executed projects in which the developing countrygovernment (recipient) acts as UNDP's executing agency.The Administrator will consider the possibility that ICDmight serve as a source of supporting assistance for suchprojects on a case by case basis.

O. Modalities for UNDP/ICD cooperation will include;

- High-level consultations will be held annually to focusthe collective input of ICD on mutually agreed priorities.It will review results of cooperative activities to date,and agree on activities for the year ahead.

Participants will include the UNDP Administrator and hissenior associates, as well as the ICD Board of Directors.Others will be invited based upon specific agenda items.

The consultation will in turn provide inputs both toUNDP's report to its Governing Council on the resultsof implementing the guidelines; and to ICD's annualmeeting.

- The Administrator will officially inform his staff andresident representatives of how cooperative activitieswill be organized under the guidelines and what servicesICD is prepared to provide.

- Liaison between UNDP and ICD Secretariats will be structuredto provide continuous two-way communication on all mattersof priority mutual interest.

- Agreed cost sharing in cooperative activities will beguided by the appropriate paragraphs in the guidelines.

- The results of this symposium will be refined into aproposed plan of action for final approval by theAdministrator and the ICD Board of Directors. This planwill include an assessment of country and sectorpriorities. Initially, activities will be limited innumber to assure initial successes and the rapid build-upof operational experience in terms of agreed priorities.

26.

Annex I

First Annual General Meeting

Symposium Session

13 July 1979



Members

Dr. O. Ballarin, Member of the Board, Eucatex S.A., Sao PauloMr. J.R. Bel, Ingenieur en Chef, SODETEG, Le Plessis-RobinsonSir George Bishop, Director, Booker McConnell Ltd., LondonMr. V. Bonisconti, Fiat Holdings S.p.A^, TurinMX. S.H. Doggett, Deputy Director of Administration, Cyanamid

International, WayneDr. J. Erdei, Commercial Director, Tesco {Agrip Group of Companies)Mr. H.F. Harris, Vice-President, CPC International Inc., Englewood

CliffsMr. J.I. Hendrie, Shell International Chemical Co. Ltd., LondonMr. Y. Huttunen, Executive Vice President, Kemira Oy, HelsinkiMr. T. lino, Chief Representative in Europe, Sumitomo Chemical Co.

Ltd., DusseldorfMr. J.B. Jensen, Managing Director, Danish Turnkey Dairies Ltd., AarhusMr. W. Kniep, President, CPC Europe Ltd., BrusselsMr. C. Lougovoy, Fondation Marcel Merieux, LyonMr. G.R. Moore, Director of International Marketing, Stauffer Chemical

Company, WestportDr. E. Ostermann, Director, Voest-Alpine A.G., LinzMr. H.A.R. Powell, Chairman, Massey Ferguson Holdings Ltd., LondonDr. J.C. Ramaer, Deputy Managing" Director, N.V. Philips' Gloeilampen-

fabriekeri, EindhovenMr. C. Sacchi, Director, Research and Studies Division, Fiat Holdings

S.p.A., TurinMr. N. Schenet, Corporate Staff Vice President, International Minerals

and Chemical Corporation, Northbrook

27.

Members (continued)

Mr. A. Simon, Staff Assistant to the President, CPC Europe Ltd.,Brussels

Dr. J. Szabo, Director, Agrip, BudapestMr. J.F.P. Tate, Director, Tate & Lyle Ltd., LondonMr. A.A. Thornbrough, Chairman, Massey Ferguson Ltd., TorontoMr. P. Vilgrain, Directeur General, Grands Moulins de Paris, ParisMr. R. Violot, Directeur des Recherches Economiques, Compagnie du

Nord, Paris

Consultant to the Board

Mr. A.J. Maier

By special invitation

Mr. M. Gucovsky,: Chief, Division for Country Programme, RegionalBureau for Latin America, UNDP, New York

Mr. Hutcheson, Irish Dairy Board, DublinMr. B. Morse, -Administrator, UNDP, New YorkMr. A.M.A. Muhith, Secretary, Ministry of External Resources, DaccaMr. J.C. Petitpierre, Deputy Director,' UNDP, Geneva

ICD Secretariat

Mr. W. W. Simons, Executive DirectorMs. V. Gamrasni, Secretary

28.

Annex II

First Annual General Meeting, Symposium Session

0900, 13 July, 1979


Chairman: Chairman, ICD

Moderator: Bradford Morse, UNDP Administrator

SUBJECT: Priorities For the Eighties—How Can IndustryHelp Make the Development Process More Effective

OBJECTIVE:

To explore development trends and priorities and determinedirections for ICD action, particularly through cooperationwith UNDP and other UN system organizations.

POINTS FOR DISCUSSION:

1. Current trends in development thinking and planning:

- Preparations for the third development decade

- UNDP and the decade ahead

- Technical cooperation—the growing importance of managerialand technological expertise in accelerating the pace ofdevelopment

- Technical cooperation between developing countries (TCDC)

2. National and regional priorities:

- The UNDP country program cycle; industry cooperation inplanning and implementation

- Short and medium-term needs at the field level

3. Industry's role in the development process—conclusions from(1) and (2) above; in particular:

- Implementing the guidelines for ICD cooperation with UMDP

- Challenges for the future

4. Summing up by the moderator

DOCUMENTS:

Several UNDP and other UN documents will be sent to participantsfor background information.

/AF/jb - KB bfir^/Ftye/J/b/Mf

File: 1C

P *r; s -rtef ®

I

4 June 1979

Dear Mr. Simons,

Thank you for your letter of 29 May 1979 informing

me of the current work of the Industry Council for

Development.

I very much appreciate your thoughtfulness in keeping

me abreast of the activities of the Council and uJiLwill

follow with interest the deliberations of the Governing

Council on "guidelines concerning the relationship between

the United Nations Development Programme and External

Institutions'".

With kind regards,

Yours sincerely,

Albert RohanDirector

Mr. Walter W. SimonsExecutive DirectorIndustry Council for Development821 U.K. PlazaHew York, MY 10017


May 29, 1979

Mr. Albert RohanDeputy Executive Assistant toSecretary-GeneralRoom 3802AUnited NationsNew York, NY 10017

Dear Mr. Rohan:

The attached documentation will serve to up-date you on theorganization and work of ICD. We have begun cooperation withseveral UN organizations, including the UNDP. In this regard,we look forward to a favorable Governing Council reaction tothe "Guidelines Concerning the Relationship Between the UnitedNations Development Programme and External Institutions." Theseguidelines will apply to our cooperation with UNDP.

At present, membership stands at 32 corporations from 18 countries.

Our first annual meeting will be held in Geneva 12/13 July. TheChairman has invited Mr. Dadzi to be our guest speaker at theannual dinner. Mr. Morse has also been invited to lead a sym-posium on 13 July to further refine ideas for focusing industryexpertise on developing country priorities.

Best regards.

Sincere


cc: Sir George Bishop


TELEPHONE: (212)867-5017 CABLE: INDUSCODEV TELEX:238976


Issue No. 221 May 1979

REPORT TO MEMBERS

With most legal and organizational arrangements completed or wellunderway, the Council can now focus more of its energies on co-operative activities with governments, the UN system and otherdevelopment organizations. Among ICD's current priority projects:

1. On the recommendation of UNDP the Government of Lesotho hasrequested ICD to help evaluate the potential economic and socialviability of fruit and vegetable processing and marketing. Theproject is strategically important to Lesotho's ambitions forstimulating small farm production, expanding exports, increasingemployment and attracting foreign investment. Efforts to processand export canned asparagus over the past two years have shownencouraging results. A small pilot plant funded by the UN CapitalDevelopment Fund and aided by UNDP, FAO and other organizationshas been the central processing unit. Before further expansionthe government wants to examine the longer range potential for aviable integrated production/processing/marketing venture.

As a first step, ICD Executive Director W. W. Simons visitedLesotho 7-10 May for discussions with government and UN systemofficials. Accompanying him was Dr. Jan ten Bruggencate, Nestle'sDirector of International Agricultural Research and Services, tosurvey the horticultural potential for a wide range of productsthat might have export markets. Plans for a small ICD mission havebeen reviewed with the Chairman and will be organized through UNDPas quickly as possible.

2. The USAID grant ($825,000 over 4 years) has now been receivedfor the ICD Commercial Seeds Industry Development Project (CSIDP)_.Several leading candidates have'been approached for the ProjectDirector position. While the Project Director is being recruited,seed company participation in CSIDP is being promoted. Nationaland international seed industry organizations have offered theirsupport. A CSIDP brochure (copies attached) will be distributed atthe annual congress of the Federation Nationale du Commerce desSemences being held in Interlaken, Switzerland beginning 28 May.


TELEPHONE: (212)867-5017 CABLE: INDUSCODEV TELEX: 23 89 76

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3. Both UNIDO and WHO have shown interest in cooperating withICD to update the UNIDO manual on guidelines for establishingpesticide formulation plants in developing countries. AlanMaier, Coordinator for Agrochemical Industries, is consultingwith UN agencies and interested members to bring together theeditorial, funding and other basic elements of this project.

4. UNIDO has invited ICD to participate in two of its globalconsultations -• one oh food processing and the other on theagricultural machinery industry. Both are part of a seriesdesigned to help implement the 1975 Lima Declaration and Plan ofAction for establishing a greater percentage of world industrialproduction in the developing countries. Dr. V. Bonisconti ofFiat will represent ICD at the agricultural machinery industrypreparatory meeting in Vienna 5-11 June.

5. Another request for ICD cooperation has come form the UNCenter for Human Settlements {Habitat and the Human SettlementFoundation). John Stokes (Vice President International, AutomatedBuilding Components, Inc.) will represent ICD at the Center'smeeting for the Asia/Pacific region on human settlements, financingand management, Manila 5-11 June. The Board appointed Mr. Stokesas ICD Coordinator for Housing and Construction Industries in-dicating a further expansion of the Council's sectoral activities.

6. UNDP has now completed its "guidelines for cooperation withexternal organizations" which will apply to UNDP cooperation withICD. These guidelines (copy attached) will be sent to membergovernments for their review at the UNDP Governing Council meetingin New York 4 June - 2 July. The ICD secretariat is working withUNDP staff officers and resident representatives to identifyopportunities for ICD assistance with developing countries, par-ticularly within the framework of UNDP country programs.

7. Cooperation with the World Bank Group and the World FoodCouncil has been further explored in recent weeks through high-level contacts with those organizations.

8. The ICD Board of Directors at its 2nd Session at Vevey, 4 May,agreed that:

there would be one membership category - corporate membership -but that distinguished individuals might be invited by theBoard to serve as honorary advisors to the Board. Criteria formembership is attached.

The founding membership includes a satisfactory number offormer ICP members. Priority in membership development shouldnow be given to new prospects in various sectors.

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Priority should be given to basic ICD activities which are:government/industry consultations, including country missionsand other forms of dialogue; working groups and task forces;seminars, workshops and briefings. Guidelines for these activitiesare attached.

A Liaison Officer - (Agro-Allied Industries) should be added tothe ICD headquarters staff, preferably through secondment froma member company. Board members will seek such an individualas soon as possible.

A reorganization of sector activities coordination should beconsidered. In the agro-industrial area, there might beumbrella Working Groups for both Input Industries and FoodIndustries. This would strengthen the integration of sub-sectoractivities, while also supporting individual sectoral projects,such as the seeds industry development project.

Dr. E. Ostermann and Mr. R. Violot were asked to assist inestablishing an overall approach for cooperation between UNIDOand ICD.

An ICD Manual of Policies and Procedures was reviewed by theBoard and found satisfactory for present circumstances. Itcovers basic policy statements concerning the objectives,organization and membership of ICD as well as accounting andpersonnel procedures. The text is now being revised to reflectrecent Board decisions and other editorial changes. It willbe reissued to all Board members and coordinators and will beavailable to other members on request.

The first ICD Annual Meeting will be held on 12 and 13 July1979 in Geneva. The approximate timetable is:

12 July Morning - ICD Board meeting (Board Members andCoordinators only)

1300 - Buffet lunch for all members1430-1730 - Business meeting (including Board

elections)1900 - Annual dinner and guest speaker

13 July 0900-1300 - ICD Roundtable involving ICD members,selected guests from UN system anddeveloping country governments. Mr. Morse,Administrator of UNDP, will be invited tochair the Roundtable which will exploreways to focus ICD's resources on developmentpriorities most effectively.

Members will be informed as soon as final agendas, timetablesand other details are set.

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9. Present membership is 32 corporations from 18 countries(membership list attached). This includes 3 new members -Alfa-Laval, Automated Building Components Inc. and SumitomoChemical Co. Ltd. Decisions from several other former ICPmembers are expected shortly.

10. Annual Reports and other basic information on membercorporations should be sent to ICD headquarters on a regularbasis. We are now setting up a file for each member and wantto have accurate documentation on your operations, products andexpertise. In particular, we need to know current and projectedactivities in developing countries.


MEMBERSHIP LIST

June 1979



BOARD OF DIRECTORS

Chairman; Sir George Bishop, Chairman, Booker McConnell Ltd.,London

Vice Chairman; Dr. J.C. Ramaer, Deputy Managing Director,N.V. Philips' Gloeilampen-fabrieken, Eindhoven

Vice Chairman; Mr. A.A. Thornbrough, Chairman, Massey FergusonLtd., Toronto

Treasurer; Mr. J.F.P. Tate, Director, Tate & Lyle Ltd., London

Assistant Treasurer; Mr. G.F. Landegger, President, Parsons &Whittemore Inc., New York

Dr. C.L. Angst, General Manager, Nestle S.A., Vevey

Mr. K. Kazareczki, General Manager, Agrober, Budapest

Mr. W. Kniep, President, CPC Europe Ltd./ Brussels

Mr. R. Violot, Directeur des Recherches Economiques, Compagniedu Nord, Paris

SECRETARIAT

Executive Director; Mr. W.W. Simons

Executive Assistant; Mrs. J. Dierckx de Casterle1

Headquarters Office: 821 UN Plaza, New York, N.Y. 10017Tel: (212) 867-5017Telex: 23 89 76Cable: INDUSCODEV

Company Member/Alternate Address HQs

AGRIP-AGROBER

ALFA-LAVAL AB

AUTOMATED BUILDINGCOMPONENTS INC.

BOOKER McCONNELLLTD.

Mr. K. KazareczkiGeneral ManagerAgrober

Dr. J. SzaboDirectorAgrip

Mr. H. StableManaging Director

Mr. J.G. StokesVice PresidentInternational

Sir George BishopChairman

Budafoki ut 79. Hungary1117 Budapest XI.Tel: 260 640Telex: 225868Cable: AGROBER

Postfack SwedenS-147 00 TumbaTel: (46) 753 311 00Telex: 10260Cable: ALFALAVAL

TUMBA

Yorkshire House196 St. George'sTerrace

Perth, WA 6000Tel: 322 4368Telex: 92190Cable: GNNAIL PERTH

99 Bishopsgate UKLondon EC2M 3XDTel: (01) 248 8051Telex: 888169Cable: CONSIDERER

Australia

BRIAU S.A.

CHEMAP A.G.

COMPAGNIE DU NORD

Mr. J. DarlesPresident Directeurgeneral

Dr. H. MiillerChairman

Mr. H.S. BondiMarketing ManagerChemical Dept.

Mr. R. ViolotDirecteur des "Recherches Econ.

B.P. 43 France37009 Tours CEDEXTel: (47) 613 817Telex: 750729

415 Alte Landstrasse Switzerland8708 MannedorfTel: 922 11 01Telex: 75508Cable: SERVOCHEMIE

21 rue Laffitte75 Paris 9emeTel: 247 8247Telex: 290332Cable: ROTHBANK

France


CPC INTERNATIONALINC.

CYANAMID INTERN.

DANISH TURNKEYDAIRIES LTD.

DREVARSKY PRUMYSL(TIMBER INDUSTRY)

EUCATEX S.A.

FIAT HOLDINGSS.p.A.

FONDATION MARCELMERIEUX

Mr. W. KniepExecutive Vice-President andChairman & PresidentCPC Europe Ltd.

Mr. H.F. HarrisVice-PresidentAssistant to theChairman

Mr. S.H. DoggettDeputy Directorof Administration

Mr. J.B. JensenManaging Director

Mr. J. PauliSenior Executive

Mr. Z. Novotny1

Director-General

Mr. R. MalufPresident

Dr. 0. BallarinMember of theBoard

Mr. C. SacchiDi re ctor, Re s e archand Studies Div.

Mr. V. Bonisconti

Dr. Ch. Me'rieuxPresident

Mr. C. Lougovoy

149 Avenue LouiseB.P. 131050 BrusselsTel: 538 8030Telex 22121Cable: MAIZENA

International PlazaEnglewood CliffsN.J. 07632

894 400054 40

USA

Tel: (201)Telex: VTUD 13Cable: PALISADE NY

USA

Denmark

Berdan AvenueWayne, N.J. 07470Tel: (201) 831 1234Telex: 13 04 00Cable: CYANAMID NYK

P.O. Box 146DK-8100 Aarhus CTel: (06) 124 155Telex: 64541Cable: DAIRYKEY

Na Florenci 7 Czecho-Prague 1, PSC 111 71 slovakiTel: 244 241Telex: 121 146 (DPTR-C)

P.O. Box 1683Sao Paulo

51 91 08

Brazil

Tel:Telex:Cable:

112 3154EUCATEX

Rua Bauru 20501248 Sao PauloTel: (Oil) 262 3400Cable; OBALLARIN

SAO PAULO

Corso G. Marconi 10/20 Italy10125 TurinTel: (Oil) 65 651Telex: 220026

17 rue Bourgelat69002 LyonTel: 37 56 66Telex: 31627

France


GRANDS MOULINSDE PARIS

INTERNATIONALMINERALS & CHEMICALCORPORATION

KEMIRA OY

KRAFT INC.

MASSEY FERGUSON LTD.AND PERKINS GROUPOF COMPANIES

Mr. P. VilgrainDirecteur General

Mr. J.L. VilgrainDirecteur General

Mr. N. SchenetCorporate StaffVice PresidentPublic Responsibility

Mr. Y. HuttunenExecutive Vice-President

Mr. T. PaivioDirector of ForeignTrade

Mr. H. KohlhaasPresidentInternationalDivision

Mr, R. ReuterVice-President

Mr. A.A. ThornbroughChairmanMassey-Ferguson Ltd.

Mr. H.A.R. PowellChairmanMassey FergusonHoldings Ltd.

Mr. C.J. Hind -Executive Assistantto the ChairmanPerkins EnginesGroup Ltd.

15 rue Croix-des- FrancePetits-Champs75001 ParisTel: 296 1434Telex: 210838Cable: MINOTEL

2315 Sanders Road USANorthbrook, IL 60062Tel: (312) 564 8600Telex: 25 37 97

Malminkatu 30 Finland00100 Helsinki 10Tel: 649 911Telex: 12633

Kraft Court USAGlenview, IL 60025Tel: (312) 998 2800Telex: 72 43 20Cable: CORPKRA GLEN-

VIEW ILLINOIS

500 Peshtigo CourtChicago, IL 6Q690Tel: (312) 222 6505

200 University Ave. CanadaToronto M5H 3E4Tel: (416) 593 3811Telex: 02 27 23

33 Davies StreetLondon W1Y 2EATel: 491 7000Telex: 28346Cable: MASFER

EastfieldPeterborough, PEl SNATel: (0733) 67474Telex: 32501Cable: PERKOIL

Company Member/Alternate Address 'HQs

MERCK & CO. LTD.

NESTLE S.A.

PACKAGES LTD.

PARSONS &WHITTEMORE INC.

Mr. A.E. CohenPresidentMerck Sharp & DohmeInternational

Dr. A.J. SnijdersExecutive DirectorMerck Sharp & DohmeInternational

Dr. C.L. AngstExecutive Vice-President

Mr. S. Babar AliPresident

Mr. G.F. LandeggerPresident

P.O. Box MRahway, N.J. 07065Tel: (201) 574 4000Telex: 13 87 95Cable: MERCK RAH

USA

B.P. 3531800 VeveyTel: 021 51 01 12Telex: 24656Cable: NESTAL

P.O. Amer SidhuLahore 37Tel: 359 181Telex: 952 4866Cable: PACKAGES

LAHORE

200 Park AvenueNew York, N.Y. 10017Tel: (212) 972 200'0Telex: 22 42 98Cable: PARSWHIT

Switzerla:

Pakistan

USA

N.V. PHILIPSGLOEILAMPENFABRIEKEN

POLSERVICE FOREIGNTRADE ENTERPRISE

SHELL INTERNATIONALCHEMICAL CO. LTD.

Dr. J.C. RamaerDeputy ManagingDirectorBureau for ExternalEconomic Relations

Mr. L. KopcinskiManaging Director

Mr. J. SobiepanDeputy DepartmentManager

Mr. J.I. Hendrie

Pieter Zeemanstraat Netherlai5600 MD EindhovenTel: Nat. 040 783291

Int. 31 40 783291Telex: 51121Cable: PHILIPS

EINDHOVEN

Ul. Szpitalna 5 PolandP.O. Box 335WarsawTel: 27 80 61Telex: 813539Cable: POLSERVICE

Shell Centre UKLondon SEl 7PGTel: (01) 934 5745Telex: 91 96 51Cable: CHEMISHELL

LONDON SEl


STAUFFER CHEMICALCOMPANY

SUMITOMOCHEMICAL CO. LTD.

Mr. R. SarabrookGroup Vice-President

Mr. G.R. MooreDirector ofIntern. MarketingAgriculturalChemicals

Mr. S. MorimotoDirector andGeneral ManagerPesticides Div.

Westport, CT 06880Tel: (203) 222 4188Cable: STAUFCHEM

Tel: (203) 222 3269

USA

15 5-ChomeKitahama, Higashi-kuOsakaTel: (06) 220 3211Telex: 63823Cable: CHEMISUMIT

OSAKA

Japan

TATE & LYLE LTD.

THOMSON-BRANDT

UNILEVER

VOEST-ALPINE A.G.

Mr. J.F.P. TateDirector

Mr. M. BelpommePresident Directeurgeneral du GroupeSODETEG (Societdd1Etudes Techniqueset d'EntreprisesGenerales)

Mr. J.R. BelIngenieur en ChefSODETEG

Mr. J.P. ErbeDirector

Sugar QuayLower Thames StreetLondon EC3R 6DQTel: (01) 626 6525

626 4343Telex: 884084

9 Avenue ReaumurB.P. 1592350 Le Plessis-RobinsonTel: 630 2313Telex: 260895

270411

UK

France

Dr. E. OstermannDirector

Dr. H. SchmolzerSenior Vice-President

Burg. s'JacobpleinPostbus 760RotterdamTel: (010) 36 44 22Telex: 21415Cable: UNILEVER

Muldenstrasse 5Postfach 2A4010 Linz (Donau)Tel: (0732) 57246Telex: 21785Cable: VOESTALPINE

LINZDONAU

Netherlands/UK

Austria


ICD COOPERATION WITHDEVELOPING COUNTRY GOVERNMENTS

ICD's objective is to support economic and social advancementin developing countries according to their national goals.

To do this, the Council provides a channel for dialogue andcooperative action between leaders of government, industry andthe UN system. ICD acts upon government requests directly tothe Council or through the United Nations system or otherdevelopment organisations.

Council members are commercial enterprises in all parts of theworld and from various economic systems. They are representedin ICD by senior executives. Such representatives accept anobligation, beyond their duty as industrial managers, to sharetheir knowledge and experience in a dialogue on developmentproblems with national and international public authoritiesresponsible for development policies.

ICD is self-financed primarily through membership fees; italso accepts funds from bilateral agencies, foundations andother development organisations for specific activities.

ICD services available to governments include:

GOVERNMENT/INDUSTRY CONSULTATIONS

1. Country Missions

Development planning. Missions of senior industrialistsare available as impartial experts to counsel developingcountry authorities on national development plans andtheir execution. They are also available to provideadvice on country and regional programmes and projectsadministered by UN system, bilateral and other develop-ment organisations.

Sectors. Executive/expert missions and task forces canbe organised to assist governments in their analysis andevaluation of sector problems.

Projects. For selected priority projects, ICD may helpevaluate project viability and, when requested, assistwith project implementation.


TELEPHONE: (212) 867-5017 CABLE: INDUSCODEV TELEX. 23 89 76

* -»

2.

2. Other Forms of Consultations

Other types of consultations can be arranged to bringtogether high-level representatives of government andindustry to explore issues and policies of centralimportance to development. Where possible, they resultin a consensus of views providing a basis for coopera-tive action.

Where issues discussed are complex and controversial,a neutral moderator may be appointed to guide thediscussion. ICD may look to individual national govern-ments or regional bodies to assist the selection ofgovernment representatives. In either case, the Councilmay also seek the assistance of appropriate UN organisa-tions and UNDP Resident Representatives. Industryparticipation in such consultations may be arranged withthe assistance of industry associations, where desirable.

WORKING GROUPS AND TASK FORCES

Groups of senior industrial experts can be organised on asector or subject basis to assist governments. The nucleusfor such groups already exists in agro-industrial sectors.Groups from other sectors can be organised if the need arises.

Working groups and task forces, as well as workshops and indi-vidual expert visits can be organised by ICD on broader subjectssuch as technology transfer, forms of industrial cooperation,training and other aspects of human resource development.

ICD can seek industry's cooperation in making company trainingfacilities and training experts available for specific require-ments .

SEMINARS, WORKSHOPS' AND BRIEFINGS

These can be organised for developing country governmentofficials on specific technical or economic subjects in whichindustry know-how and operating expertise is a significantfactor.

Publications such as manuals, technical papers and conferenceproceedings, as well as audio-visual and other communicationsprojects may also be supported by ICD.

3.

ICD'S OPERATING PRINCIPLES ARE;

ICD acts upon government request, either directly to ICDor through United Nations or other development organisa-tions.

- All ICD activities are carried out to assist developmentand not to promote commercial interests of individualmembers or other enterprises.

Normally ICD will finance its participation in such acti-vities. Cost sharing with governments, UN or otherorganisations involved may be negotiated for certainexpenses.

- The composition of any mission, working group, etc., willto the extent feasible, be representative of the industrysector(s) involved and will be acceptable to the appropriategovernment authorities.

CRITERIA FOR MEMBERSHIP AND HONORARY ADVISORS

I. Corporate Membership

Membership in ICD is open to those international and nationalcommercial enterprises which fully support the principles setforth in the Council's prospectus. Moreover, such enterprisesmust:

- Be represented in ICD by a senior executive.

- Be prepared .to provide expertise for ICDactivities, particularly in developingcountries.

- Support the principle that such expertise willbe provided in an impartial manner to assisteconomic and social development, and not topromote the commercial interests of individualmembers.

Be prepared to pay such annual membership feeas may be established by the membership.

- Support the concept of a global membership,including enterprises from all economic systemsand from both developed and developing countries.

- Support ICD efforts to promote greater under-standing:

- by industry of the developmentprocess and of the character andfunctioning of intergovernmentalorganisations and governments;

by intergovernmental organisationsand governments of industry'scharacter and functioning and itsvital contribution to development.

II. Honorary Advisors

In selected cases, the Board may wish to invite outstandingindividuals from developed and developing countries to advisethe ICD Board in their personal capacities.

GUIDELINES CONCERNING THE RELATIONSHIP BETWEEN THE UNITEDNATIONS DEVELOPMENT PROGRAMME AND EXTERNAL INSTITUTIONS

1. There are a number of resolutions of the United NationsGeneral Assembly which emphasize the importance of facilitatingdevelopment co-operation by making available additionaltechnical and financial resources,

2. As one action in response to these resolutions, theAdministrator has determined that there should be available,for general information and use, guidelines which establishthe basic conditions which must be met by institutions andorganizations external to the United Nations, includingeducational, industrial, labour, scientific, technical andtrade institutions, organizations and associations, and similarorganizations (hereinafter called Co-operating Organizations)to provide development inputs in collaboration with UNDP.

3. Any operational agreements concluded with individual Co-operating Organizations in respect of specific assistanceactivities will be subject to the following guidelines:

a) Co-operating Organizations must be non-profit andnon-political. Membership may be composed ofindividuals or undertakings whatever their formof organization or ownership and may be drawn fromdeveloped countries, developing countries, or both.

b) For any proposed plan of assistance, a Co-operatingOrganization must satisfy the Administrator thatone of its objectives is to assist the country orcountries concerned in achieving their economic andsocial goals and not to promote the particularinterests of any members which may participate inactivities carried out in collaboration with UNDP.

c) The objectives of the organizations and the activitieswhich they carry out must be, in the judgment of theAdministrator, consonant with those of the Charterand objectives of the United Nations.

d) The Administrator must be satisfied that themembership of Co-operating Organizations is notsubject to unreasonable or discriminatory conditions.

e) The services of the Co-operating Organizations shouldbe available either directly to the developingcountry, at the Government's direct request, or by

-2-

request of the interested Government through theUnited Nations development system, with thedecision as to which method should be used beingleft solely to the determination of the developingcountry concerned.

f) In any project or programme of assistance, Co-operating Organizations will act only in agreementwith an interested Government and in full harmonywith its -national priorities. Where appropriateand when requested by the Government concerned,Co-operating Organizations will utilize the UNDPcountry programme as a frame of reference. Theagreed services provided and activities undertakenthrough the facilities of UNDP must be carried outin full accordance, with UNDP's standing policies andprocedures. ' '

g) Services provided by Co-operating Organizations underthese guidelines may be either at their own expensein the case of those organizations which are in aposition to meet such expense, or be compensated byUNDP in accordance with UNDP's financial regulationsand rules.

h) Reports, recommendations or findings which Co-operatingOrganizations may prepare with regard to activitiescarried out with UNDP under these guidelines may notbe published without the consent of the Government orGovernments concerned and UNDP.

i) Consultations shall take place as required betweenCo-operating Organizations and UNDP through theirauthorized representatives on aspects of activitiescarried out in collaboration with UNDP.

j) The publications and other documents of Co-operatingOrganizations will show in suitable form that they areoperated as independent, self-funded organizationswith no linkages to UNDP other than those derived fromany programmes or projects carried out pursuant tothese guidelines.

k) The general conditions required by UNDP for activitiescarried out by subcontractors (see UNDP/ADM/HQTRS/210/Add. of 22 October 1975) will apply to activities carriedout by Co-operating Organizations under these guidelinesunless otherwise agreed through specific arrangements.

I 1

CSIDPA program to increase agriculturalproduction in developing countriesthrough assistance to national seedenterprises.

Industry Council tar Development

CSIDP-New support for bringinghigher quality adapted seed varietiesto developing country farmers.

Commercial seed enterprises are an essentialpart of any nation's food system. Today, in thedeveloping countries, they have a particularlycritical role to play in providing the qualityseed of adapted varieties necessary forincreased agricultural production. Such seedsare relatively low-cost compared with otheryield-increasing inputs and can be the basisfor quickly improving the productivity oftraditional farmers.

The Industry Council for Development (ICD)has established the Commercial SeedsIndustry Development Project [CSIDP] to helpimprove the effectiveness of seed enterprisesin developing countries. CSIDP operateswithin the broader framework of ICD whichsupports economic and social developmentaccording to national objectives. CSIDP isfinanced by a grant from USAID.

Project activities are practical andresults-oriented. They help governments andindividual seeds enterprises overcomeconstraints such as the lack of specializedtechnology and knowledge, trained manpower,physical facilities, or financial partners.

Project activities also promote betterunderstand ing and recognition of the role ofcommercial seeds enterprises whether they bepublic, private or joint sector enterprises.

CSIDP-Priority activities strengthenseed enterprises through advisory andinvestment services, trainingprograms and fellowships.

CSIDP activities concentrate on the following:1. Inventory of needs and resources. Operatingon a worldwide basis, the project identifies onthe one hand the needs of developing

countries and their seeds enterprises and, on |the other, the resources available for seedindustry promotion, particularly from seed !industries in developed countries and their isubsidiaries, as well as various institutions. ,This inventory of needs and resources is kept ;current through CSIDP cooperation with !developing country governments, seed ;

industry associations, UN and other ;international organisations, universities, ;USAID missions, etc. I

i

2. Promoting and Assisting Industrial jCooperation iUsing this inventory, the Project Director 'matches priority developing country needs !

with identified resources and assists in setting ]up cooperative arrangements involving jappropriate public and private sector iseeds organisations.

!!

The objective of this 'brokerage' function is to 'accelerate the transfer and adaptation of:—technological know-how—management skills i—seed materials \—marketing expertise—capital equity where appropriate

i

Long term, the project also promotes 'partnership arrangements between seed Ienterprises in all parts of the world, ,particularly those which will help developing ;

countries achieve their food production goals. '.i

Seed enterprises assisted by CSIDP are !selected with the cooperation of the local ;government. Priority is given to organisationswhich: |—produce and/or multiply and distribute •seeds of priority importance to the nationalfood production strategy. ;—are (or can be) commercially viable.—are capable of delivering high-quality seeds ;quickly and efficiently—particularly to :small-scale farmers.

In assisting such enterprises, CSIDP seekscooperation from those enterprises indeveloped or developing countries which arewilling to provide the appropriatetechnological, management, marketing orother expertise required. They may also beinterested in partnership ventures.

In all cases, the cooperation arranged byCSIDP is in accordance with the laws andpolicies of the host developing country.

3. TrainingThe most serious constraint to effective seedindustry operations in developing countriestoday is the lack of seed specialists andtrained technical and management manpowerat all levels. Therefore, a priority CSIDP activityis to structure and help finance trainingprogrammes for key personnel in variousaspects of developing country commercialseed operations.

Individuals selected for CSIDP fellowships aregenerally already employed or scheduled foremployment in technical and managementpositions. Training programmes are tailored tothe needs of the trainees. They are essentiallyon-the-job training programmes and, to theextent possible, actual training takes place atthe facilities of cooperating seed enterprises indeveloped and other developing countries.The exact content and length of eachprogramme varies with the trainee's needs,but usually is planned to allow him toexperience a variety of operations during aseasonal cycle.

CSIDP fellowships are individually plannedand negotiated. They generally cover the basiccost of round-trip transportation and areasonable per diem for the trainee. Exactarrangements depend upon the trainee'sneeds and the agreement with the cooperatingenterprises and institutions.

CSIDP-Port of on effort by industryworldwide to support social andeconomic development.

ICD is a non-profit organisation,headquartered in New York, with worldwideoperations. The Council is financed bycommercial enterprises in developed anddeveloping countries without differentiation asto economic system or form of ownership. ICDdoes not promote the interests of its members.Rather, it supports economic and socialdevelopment by providing a channel fordialogue and cooperative action betweendecision-makers in government, industry andthe United Nations system. The Council hasthe support of the UN Secretary-General andoperates in cooperation with UNDP andvarious other UN system organisations. ICDacts upon government request which may bedirect or through the UN system.

Council members support the belief thatindustry has a responsibility—beyond itscommercial function—to share its knowledgeand expertise with governments anddevelopment organisations in a common effortto bring about long-term economic and socialprogress. •

ProspectusThe members of the Council share the followingviews:

1. The development of productive capacity toeliminate poverty in the world is a top priority taskfor mankind.

In supporting this task, the Council specificallyundertakes that its activities will be carried out forthe purpose of encouraging economic and socialdevelopment in developing countries, and not topromote the commercial interests of its members.

2. Setting the priorities for development policiesand objectives is the responsibility of national andinternational public authorities.

3. In our interdependent world, the actualdevelopment process cannot take place withoutmobilizing a number of essential resources, one ofwhich consists of managerial and other practicalcapabilities acquired over years in creating andexpanding viable enterprises.

4. Whatever the economic system or its stage ofdevelopment, the creation and management ofproductive capacity requires similar capabilities.

5. The development process requires a continuousexchange of views between national andinternational public.authorities responsible fordevelopment policies, and those with themanagerial and other capabilities to createproductive capacity. This principle has beenreconfirmed in resolutions of the UN GeneralAssembly.

6. Enterprises from all countries have aresponsibility to communicate and cooperate withgovernment and international organisations infurthering development, especially concentratingon priority sectors.

7. The primary responsibility of companymanagements is to build and run viable productivecapacity through their enterprises. However, apartfrom this primary responsibility, managers andexperts from enterprises should be prepared to


spend time and effort on the dialogue with publicauthorities on development problems.

8. The Industry Council for Development has beencreated to stimulate the dialogue on practicaldevelopment problems between public authoritiesand enterprises. The Secretary-General of theUnited Nations has requested the Chairman of theCouncil to establish these new arrangements sothat the UN system can make use of industryexpertise.

9. In these activities, the Council seeks to createunderstanding by its membership of developmentobjectives set by the United Nations and itsmember governments on the one hand; and, on theother, understanding by United Nationsorganisations and their member governments ofindustry's role in facilitating the solution of practicaldevelopment problems.

10. To this end, the Council organises countrymissions, expert working groups, and other formsof dialogue when invited to do so by governmentsdirectly, or through the United Nations or otherinternational organisations, or on its own initiative.

The Council is an independent, non-profitorganisation, financed primarily throughmembership fees and other contributions.

The organisation of ICD.

The Council's members are companies from marketand centrally-planned economies in developed anddeveloping countries. Individuals can be invited toserve as advisors on the basis of their specialknowledge and experience.

The Board of the Council is elected by themembers.

The headquarters of the Council are located in NewYork in the vicinity of the UN Secretariat to facilitatethe organisation of the work in cooperation withgovernments and with the UN system on the basisof working agreements, as requested by the UnitedNations. The Council will set up offices in otherlocations as its work may require.

CSIDPCSIDP's ultimate success will depend uponthe extent to which established viablecommercial seed enterprises are prepared toassist in furthering the improvement of allaspects of seed production in developingcountries. Any such seed companies will bewelcome to participate in CSIDP's activities.

For further information, please contact:

W. W. SimonsExecutive DirectorIndustry Council for Development821 UN PlazaNew York, N.Y. 10017USA

J. I. HendrieICD Seeds Industry CoordinatorCISShell International Chemical Co. Ltd.Shell CentreLondon SE1 7PGUK


MC/jb -

24 April 1979

Dear Mr, Simons,

Thank you for your letter of 17 April 1979 and theattachments concerning developments in the IndustryCouncil for Development.

I was interested to learn of these matters and amindeed grateful to you for your thoughtfulness in keepingme informed about ICD.

With best regards,

Yours sincerely,


Mr. Walter W. SimonsExecutive DirectorIndustry Council for Development821 U.N. Plaza

York, HY 10017


17 April 1979

Mr. Albert RohanDeputy Executive Assistantto the Secretary-General

Room 3802AUnited Nations

Dear Mr. Rohan:

Further to my letter of 12 March, I am pleased tosend you some new documentation on ICD, includinga list of our founding members.

We have worked closely with Mr. Brown and his asso-ciates on the draft UNDP guidelines for cooperationwith external organisations that would apply to ICD.We are, of course, hopeful that these can be finalizedand implemented in the near future. In this regard, Irecently had a visit from two Swedish Governmentofficials concerning ICD. I attach a copy of my noteon that discussion.

We are working closely with UNDP staff to identifyneeds for ICD services. A request from the Governmentof Lesotho for a country mission is expected shortly.Contacts with several other developing country govern-ments are underway or planned. We also plan to havethe USAID-funded seeds industry project operational asquickly as possible.

Best regards.

Sincerely Amours,

Walte/r W. SimonsExecutive Director

cc: G.S. Bishop




6 April 1979

To: File 22/9 Sweden /

From: Walter W. Simons \M&

Subject: Swedish Government Views on UNDP/ICD Cooperation

On 4 April, Bo Kjellen (Ministry of Foreign Affairs, Stockholm)and Peter Osvald (First Secretary of the Swedish Mission to theUN) called on me for information on ICD. Kjellen was collectingthis information relative to the Government's point of view onthe proposed guidelines for UNDP cooperation with external orga-nisations that will go to the Governing Council in June.

The basic questions raised by Kjellen during our 1% hour talkand the answers I provided can be synthesized as follows:

Q: What is the difference between the old ICP and the new ICD?

A: Organisationally ICD is completely different. It is a non-profit, self-funded corporation with no UN ties. However,the Secretary-General and the Administrator of UNDP haveadvised on the design of ICD and support its establishment.

Conceptually there is similarity between the organisationsas they are both based on the concept of making industryexpertise available to governments to assist developmentpriorities.

Q: What are the qualifications for membership in ICD? (Kjellensaid that the Swedish Industry Association views ICD as anexclusive group.)

A: Agreement with the basic philosophy of the Council as statedin the prospectus. In particular, corporations must bewilling to provide expertise voluntarily and withoutrelation to commercial interests. Of course, members mustalso finance the Council's activities and must provide high-level representation.

I stressed the global nature of the membership, including Eastand West European and developing country companies. I also empha-sized our intention to expand the membership, particularly withThird World entrepreneurs and probably to expand sectoral repre-sentation into other infrastructural areas.



2.

I emphasized repeatedly that the membership is not a closedclub or in any other way an exclusive group of businessmen.Any company can apply and will be judged in accordance withthese criteria by the Membership Committee of the Board.Also, we deliberately seek working contacts with companiesoutside the membership. A good case in point is our seedsindustry project where we will be dealing with a wide rangeof small companies in developed, as well as developingcountries. Most of these companies will probably not beinterested in ICD membership.

Q: Why do companies want to join ICD?

A: Long-term orderly economic and social development isessential to the survival and prosperity of both corpora-tions and governments.

There have been significant changes in both governmentand industry attitudes over the past decade. Industryleaders, particularly of transnational corporations,are more concerned today about their role in an inter-dependent world. They also want to show that industry cancontribute to the development process.

I rebutted the "Trojan Horse1 argument as strongly as I could -it is difficult to imagine a company that depends upon contactsthrough the UN system to stay in business. Rather, it is theUN system that needs industry. Management and technology are

f the scarcest development resources and industry's main strength.

Q: How is ICD different from a regular NGO?

A: ICD is not a 'defensive1 organisation. It does not promoteor defend a position or point of view. It does not repre-sent industry per se. Also, ICD has an operational rolein providing expertise to governments.

Q: Are guidelines for cooperation with UNDP really necessary?

A: Yes, for several reasons. We need specific ground rules tolegitimize and guide such cooperation. We also need guide-lines to promote industry involvement in such activitiesand to ensure that industry resources are used effectivelyfor priority matters. Such guidelines should help theAdministrator attract additional resources to developmentfrom various functional areas other than industry, e.g.education, labour, research, etc. The guidelines give theAdministrator an exciting opportunity to expand the scopeof UNDP's resource base.

3.

Q: How will governments know about ICD services?

A: Contacts with various government representatives areunderway through UN missions in New York, as well asembassies and consulates in various parts of the world.In addition, contacts through companies, trade associ-ations, etc. will help to spread the word about ICD.In cooperation with UNDP the Resident Representative willhave an important role in planning the use of ICD serviceswith local government officials.

Mr. Kjellen finished up with a plea for us to understand theSwedish political situation. He said that the Governmentfeels it must "protect" the UN system and must take intoaccount Swedish taxpayer opinion on the question of multi-national corporations and their cooperation with UN groups.I mentioned the interest of taxpayers - including industryitself - in a number of other countries in support of the ICDconcept and hoped that there was a way in which we could gainSwedish support for our work. (I referred several times tothe support which Swedish industry and officials had given toICP in its early days.)

c


Issue No. 14 April 1979

REPORT TO MEMBERS

To keep you informed on Council activities and related events, wewill issue this informal report on a periodic basis. We welcomeyour comments and ideas for subjects which might be included.

1. ICD bylaws incorporating recommendations made at the Council'sfirst meeting are attached.

2. Guidelines governing agreements between UNDP and organisationsexternal to the UN system are now in final draft form. They willbe discussed at the June meeting of the UNDP Governing Council. Inthe meantime, we are actively working with UNDP staff to identifyopportunities for government requests for ICD services.

As a result, a request from one African country for an ICD missionis expected; and we are exploring how the Council raight similarlyassist several other countries.

3. Government support for ICD is being actively promoted. Fullinformation about ICD has been sent to the heads of UN delegationsof countries where we have ICD members.

At the invitation of the Canadian Government, the Executive Directorvisited Ottawa and briefed officials there. As a result, Canadiansupport is foreseen on membership development and work plan items.

4. Search for a Project Manager for the seeds industry promotionproject is about to begin (see attached job description). We wouldlike any ideas you have for candidates as quickly as possible.Several well-qualified developing country candidates have beenrecommended.

5. Initial membership goal of 30 founding members has been achievedfrom the former ICP membership (membership list attached). Six othercompanies are seriously considering membership. Efforts to attract .,other potential members are underway, including recommendations fromseveral members. We would welcome more such proposals.



2.

6. Second session of the ICD Board (for Board Members and Coordi-nators) will be held in Vevey, Switzerland on 4 May. The agendawill include most of the items indicated above with particularemphasis on the work plan, membership development and plans forthe first annual meeting in June or July. All members will receivethe report of this meeting.

7. Food problems reviewed by UN Committee of the Whole. Detailedstatements by officials of the World Food Council, FAO and UNDPwere highlights of the meeting of the UN Committee of the Wholelast month. The Committee was set up in December 1977 to assessprogress toward a New International Economic Order. It meetsbetween regular sessions of the General Assembly. (Summaries ofthese reports are available on request).

COMMERCIAL SEEDS INDUSTRY PROMOTION PROJECT

(USAID-Funded)

The following project description is largely excerpted 'from theUSAID project document.

General

Quality seed of adapted, improved crop varieties is the lowest-costmajor input for increasing crop production. Not only are betterseeds low in relative cost, compared with other yield-increasinginputs, but farmers can adopt them without making other major changesin technology. Thus, improved seeds are essential to improved agri-cultural practices by traditional farmers in developing countries.

In developed countries, effective commercial seed enterprises arealmost universally present. Whether these are in the public or theprivate sector (good examples of both could be cited), they insurea reliable and economic supply of this important input to all farmers.In contrast, most developing countries do not have such effectivecommercial sources of seed. Governmental or other public sectorseed agencies typically are ineffective and inefficient in suchcountries. The result is that few farmers, even large-scale publicfarming enterprises, have access to reliable sources of good seed.

Status of Commercial Seed Industry

Surveys by both AID and FAO in the past few years have indicated aneed for developing the commercial aspects of the seed industry asan adjunct to general agricultural development. At a Seed Symposiumsponsored by FAO in Vienna in 1973, an FAO Seed Review indicated that85% of the developing world countries had improved crop varietiesavailable, but that nearly all these countries suffered from aninadequate seed supply at the user level.

The nature and magnitude of obstacles to seed industry developmentvary from country to country. The most common constraints to suchdevelopment encountered in the majority of countries are:

- lack of adequate and consistent support for realistic seedenterprise operation. This often results from the absenceof clear recognition and conviction by government officialsof what needs to be done and what is required to do itsuccessfully;

- lacking or insufficient institutional framework

- lack of physical facilities, especially seed processing anddistribution plants;

- lack of trained specialists and manpower. This is often themost serious constraint of all. The quality of any develop-ment programme is directly related to the quality of thehuman resources involved. Initiation of adequate trainingprogrammes therefore is a fundamental requirement forsuccessful seed industry development;

lack of adequate and continuing financing also is a commonconstraint. This is often directly related to lack of recog-nition and support from governments, and particularly tofailure to recognize that the need for the seed input is acontinuing one which must be financed on a rational, self-sustaining basis.

The private seed industry, or adequate commercial seed operationsin the public sector, are well established in almost all developedagricultural countries. However, the seed industry is not large bycurrent international business standards, and tends to be either inthe hands of fairly small private businesses or as a small divisionof a larger, more complex firm. Many seed enterprises operate infairly small, delimited geographical areas or produce and sellspeciality products. Thus, the transferability of special expertknowledge and improved materials is hampered.

Purpose, Objectives and Activities

A. Purpose of the Grant

The purpose of the grant is to stimulate and promote the developmentof private and/or parastatal commercial seed industries in targetdeveloping countries.

B. Major Objectives/Outputs

The objectives of this proposed grant are considered under threetypes of outputs:

1. The first objective of the project will be to identify andclassify international seed industry resources and relatethem to seed industry needs in developing countries.

This will necessitate contacts with all interested commercialseed firms, both private and public, in developed countries.Resources and cooperation of seed trade associations, such asthe International Seed Federation (FIS), InternationalAssociation of Plant Breeders (ASSINSEL), the American SeedTrade Association (ASTA) and others will be utilized to thefullest possible extent in making this survey. Also, closeliaison will be maintained with the Seed Industry DevelopmentProgramme (SIDP) of FAO, and with the AID-funded project atMississippi State University.

3.

Concurrently, seed industry needs in developing countrieswill be inventoried. Initially, this inventory will bebased on information obtained from SIDP and from AID missionsin these countries. As the inventory is developed, theProject Officer will make personal visits to selected devel-oping countries and enlarge the scope of the inventory byobtaining more detailed information from appropriate officialsand from seed merchants and farmers organisations. Theultimate objective will be to build a current, accurateinventory of developing country interests and needs which canbe matched on a case-by-case basis with the resource inventoryof the seed trade in developed countries.

2. Promotion and Assistance of Industrial Cooperation

When sufficient information has been assembled in the firstproject phase, the Project Officer will undertake selectedcases of "brokerage", in which the resources of developedcountry commercial seed enterprises will be matched with needsand interests of developing countries. This will take variousforms as may be most appropriate to the specific circumstances,but the basic rationale will be to promote and assist in thedevelopment of cooperative arrangements between governmentalagencies and appropriate entrepreneurs in the developingcountry involved and public or private developed country seedenterprises. The objective will be to bring about appropriatetransfers of know-how, seed materials, and capital equity wherethe latter is needed. Successful partnership arrangementsbetween agencies in developed and developing countries, on along-term basis, are one goal of this operation.

The selection of developing country agencies will, in the firstinstance, be made with the help of the respective USAIDMissions. Working principles and policies of the ICD systemwill be followed to insure impartial selection of the best-qualified participating agencies in respective developingcountries. Emphasis will be placed on the establishment ofoperations which are commercially viable and capable ofdelivering high-quality seeds in a timely fashion to farmingend-users. Special efforts will be made to ensure that thesystems which are established reach and are responsive to theneeds of small-scale farmers.

Cooperation from developed country seed enterprises will besolicited initially from members of ICD. However, since manyleading seed firms and the smaller-scale seed enterprises donot presently belong to ICD, it will be necessary at an earlystage to invite participation by non-member firms.

4.

The particular type of cooperative arrangement to be reachedbetween the agencies involved will be determined by policiesand laws of the developing country involved and by the arrange-ments which developed country firms find compatible with theircommercial interests. The project will assist both partnersin these arrangements to arrive at mutually satisfactory andenduring working ties.

Training

Lack of adequate seed specialists and trained manpower tooperate seed enterprises at all levels presently is perhapsthe most serious constraint to successful seed systems in themajority of developing countries. The quality of any seedsystem is directly related to the abilities of the people whoare given responsibility for developing and operating it.Therefore, the early initiation of training programmes todevelop adequate know-how for the operation of commercialseed enterprises is a major objective of the proposed project.

The project will structure and initiate a programme for trainingpersonnel from developing countries in all aspects of commercialseed operations. Persons selected for training will be indivi-duals who are already employed or scheduled for employment inmanagerial or technical positions in seed enterprises. Theywill be trained in developed and other developing countries, incooperation with commercial seed firms in such countries, andtheir training activities will chiefly be on-the-job, hands-onexperience in commercial seed operations. The length oftraining periods will vary with the needs of the individual,from perhaps three months to as much as a year, but will averageabout 8 months to enable the trainee to experience a variety ofoperations with the seasonal cycle. The site of training andcooperating firm will be chosen with particular attention totheir relevance to the intended post-training activities of thetrainee.

Responses from interested commercial firms in developedcountries during project development, and previous experiencewith AID-sponsored training utilizing the facilities and coope-ration of U.S. seed firms indicates good opportunities for'cooperation in arranging for adequate training programmesinvolving the assistance and facilities of commercial companies.It is estimated that 6 to 10 trainees per year can easily beaccommodated in available U.S. firm facilities alone. Firms inother developed countries also have indicated willingness andinterest in cooperating in the training programmes.

Administration of Grant

The grant is for $825,000.00 over a four year period. Itwill be executed and implemented by the Industry Councilfor Development. The project director will be locatedin ICD headquarters. New York City and will report directlyto the Executive Director of ICD or to an official he maydesignate. ICD will enlist the support of other agencies,i.e. FAO, UNDP, the World Bank, and other organizations.

JOB DESCRIPTION

Position; Director, ICD Seeds Industry Development Project.

Location; ICD Headquarters, New York, with domestic and foreigntravel as required.

Duties; The incumbent will have overall responsibility for ICD'sSeeds Industry Development Project, which is funded by a grantfrom USAID.

Initially, the incumbent will be required to:

1. Determine, in cooperation with developing country governmentofficials, USAID Missions, UN and other internationaldevelopment organisations, priority requirements forimproving the effectiveness of local seeds industries,particularly those related to national food crop priorities.

2. Determine, with assistance from ICD members and otherenterprises, the facilities existing within commercialseed companies worldwide for training seedsmen in allaspects of modern seed industry practices.

After this initial research has been completed, the incumbent willdesign and make arrangements for a series of training programmesin which individuals from developing countries, who have beenapproved by their governments, will receive ICD fellowshipsand be placed with commercial seed companies in the mostsuitable geographical location for training periods of up toone year's duration. The director will monitor and evaluatetraining activities on a frequest basis in order constantly toimprove project effectiveness.

At a later stage it is hoped that the Project Director will beable to promote and assist in cooperative arrangements betweendeveloping country governments and local entrepreneurs and/orforeign seed companies in order to realize the resourcestransfer necessary to bring about and maintain increasedagriculatural production through improved seed technology.

Coordination with other ICD Activities; The incumbent will beassisted by the ICD Seeds Industry Coordinator, a membercompany representative, appointed by the Board to facilitateindustry support for seeds sector activities. The Coordinatorwill organize and head a Steering Committee of seeds industryexecutives to assist the project; the Project Director willserve as Secretary of the Committee.

The Project Director will also advise on seeds industry aspectsof ICD missions, working groups, etc.

Qualifications required:-University Degree in Agriculture or a related subject.-Professional experience in a commercial seeds operation.-Managerial/Administrative experience.-First-hand knowledge of developing countries.-Very good knowledge of English (written and spoken) witha good working knowledge of another language; preferablySpanish or French.

Supervision and Reporting;The Project Director will be responsible for rountinecoordination with and reporting to USAID.The Project Director will receive overall guidance from theExecutive Director ICD, to whom he will report.


MEMBERSHIP LIST

March 1979




AGRIP-AGROBER

BOOKER McCONNELLLTD.

BRIAU S.A.

CHEMAP A.G.

COMPAGNIE DU NORD

CPC INTERNATIONALINC.

Mr. K. KazareczkiGeneral ManagerAgrober

Dr. J. SzaboDirectorAgrip

Sir George BishopChairman

Mr. J. DarlesPresident Directeurgeneral

Dr. H. MiillerChairman

Mr. H.S. BondiMarketing ManagerChemical Dept.

Mr. R. ViolotDirecteur desRecherches Econom.

Mr. W. KniepExecutive Vice-President

Chairman andPresidentCPC Europe Ltd.

Mr. H.F. HarrisVice-PresidentAssistant to theChairmanCPC InternationalInc.

1502 Budapest 112 HungaryTel: 260-640Telex: 225868Cable: AGROBER I

99 Bishopsgate UKLondon EC2M 3XDTel: (01) 248 8051Telex: 888 169Cable: CONSIDERER

B.P. 43 France37009 Tours CEDEXTel: (47) 613 817Telex: 750729 F

Switzerlari415 Alte Landstrasse8708 MannedorfTel: 922 11 01Telex: 75508Cable: SERVOCHEMIE

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CYANAMID INTERN.

DANISH TURNKEYDAIRIES LTD.

DREVARSKY PRUMYSL(TIMBER INDUSTRY)

EUCATEX S.A.

FIAT HOLDINGSS.p.A.

FONDATION MARCELMERIEUX

GRANDS MOULINSDE PARIS

Mr. S.H. DoggettDeputy Director ofAdministration

Mr. J.B. JensenManaging Director

Mr. J. PauliSenior Executive

Mr. Z. NovotnyDirector-General

Mr. R. MalufPresident

Dr. O. BallarinMember of theBoard

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INTERNATIONALMINERALS & CHEMICALCORPORATION

KEMIRA OY

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Public Responsibility Telex: 25 37 97

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Mr. T. PaivioDirector of ForeignTrade

Malrainkatu 3000100 Helsinki 10Tel: 649 911Telex: 12633

Finland

KRAFT INC.

MASSEY FERGUSON LTD,AND PERKINS GROUPOF COMPANIES

Mr. H. KohlhaasPresidentInternationalDivision

Mr. R. ReuterVice-President

Mr. A.A. ThornbroughChairmanMassey-Ferguson Ltd.

Mr. H. A. R. PowellChairmanMassey FergusonHoldings Ltd.

Kraft Court USAGlenview, IL 60025Tel: (312) 998 2800Telex: 72 43 20Cable: CORPKRA GLEN-

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EastfieldPeterborough, PEl SNATel: (0733) 67474Telex: 32501Cable: PERKOIL

MERCK & CO. LTD, Mr. A. E. CohenPresidentMerck Sharp & DohmeInternational

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P. 0. Box MRahway, N.J. 07065Tel: (201) 381 5000Telex: 13 87 95Cable: MERCK RAH

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NESTLE S.A. Dr. C. L. AngstExecutive Vice-President

B. P. 3531800 VeveyTel: 021 51 01 12Telex: 24656Cable: NESTAL

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PACKAGES LTD.

PARSONS &WHITTEMORE INC,

Mr. S. Babar AliPresident

Mr. G. F. LandeggerPresident

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200 Park Avenue USANew York, NY 10017Tel: (212) 972 2000Telex: 22 42 98Cable: PARSWHIT

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Dr. J. C. RamaerDeputy ManagingDirectorBureau for ExternalEconomic Relations

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SHELL INTERNATIONALCHEMICAL CO. LTD.

Mr. J. I. Hendrie Shell CentreLondon SEl 7PGTel: (01) 934 5745Telex: 91 96 51Cable: CHEMISHELL

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UK

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Westport, CT 06880Tel: (203) 222 4188Cable: STAUFCHEM

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Tel: (203) 222 3269


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THOMSON-BRANDT

UNILEVER

Mr. M. BelpommePresident Directeurgeneral du GroupeSODETEG(Societe d'EtudesTechniques etd'EntreprisesGenerales)

Mr. J. R. BelIngenieur en ChefSODETEG

Mr. J. P. ErbeDirector

9 Avenue ReaumurB. P. 1592350 Le Plessis-RobinsonTel: 630 2313Telex: 260895 F

270411 F

France

Burg. s'JacobpleinPostbus 760RotterdamTel: (010) 36 4422Telex: 21415Cable: UNILEVER

Netherlands/UK

VOEST-ALPINE A.G, Dr. E. OstermannDirector

Dr. H. SchmolzerSenior Vice-President

Muldenstrasse 5Postfach 2A4010 Linz (Donau)Tel: (0732) 57246Telex: 21785Cable: VOESTALPINE

LINZDONAU

Austria

•7.* "

. '-V-, ~* B Y - L A W Si,

OF

INDUSTRY COUNCIL FOR DEVELOPMENT

ARTICLE FIRST

OFFICES

PART 1. PRINCIPAL OFFICE - The principal office of the corporation

shall be in the City of New York, State of New York.

PART 2. OTHER OFFICES - The corporation may also have offices at

such other places within or without this state as the board may from

time to time determine or the business of the corporation may require.

( ARTICLE SECOND

PURPOSES

PURPOSES - The purpose for which this corporation has been

organized are as set forth in paragraph Third of the Certificate of

Incorporation, as amended.

ARTICLE THIRD

MEMBERSHIP

PART 1. QUALIFICATION FOR MEMBERSHIP - Any person (defined as

an organization or individual) actively engaged in any enterprise

related to the social economic or industrial development of developing

countries of the world qualifies to apply for membership. Applications

, r

1 • '' for membership shall be received and approved or disapproved by the .

Board of Directors or Committee of the Board of Directors.

('•PART 2. MEMBERSHIP MEETINGS - The annual membership meeting

of the•corporation shall be held on a date specified by the Board of

Directors, the first such annual meeting to be held within 12 months

of the initial meeting of the membership and each successive annual

meeting to be held within 15 months but not less than 8 months from

, the date of the preceding annual meeting. The Secretary shall cause

to be mailed to every member in good standing at his address as it

appears on the membership roll book of the corporation a notice

stating the time and place of the annual meeting. Said notice shall be

mailed at least 30 days prior to the time of the annual meeting.

Regular meetings of the corporation shall be held as decided

V by the membership from time to time.

( The presence at any membership meeting of not less than three (3)

members shall constitute a quorum and shall be necessary to conduct

the business of the corporation; however, a lesser number may adjourn

the meeting for a period of not more than two (2) weeks from the -date

scheduled by the by-laws and the Secretary shall cause a notice of

the re-scheduled date of the meeting to be sent to those members who

were not present at the meeting originally called. A quorum as

hereinbefore set forth shall be required at any adjourned meeting.

i

A membership roll showing the list of members as of the record

date shall be produced at any meeting of members upon the request therefoi.

of any member who has given written notice to the corporation that such

request will be made at least ten days prior to such meeting. All

, I

( persons appearing on such membership roll shall be entitled to vote at

the meeting.

PART 3. SPECIAL MEETINGS - Special meetings of the corporation

may be called by the directors. The Secretary shall cause a notice

of such meeting to be mailed to all members at their addresses as

they appear in the membership roll book at least ten days but not

more than fifty days before the scheduled date of such meeting. Such

notice shall state the date, time, place and purpose of the meeting and

by whom called.

No other business but that specified in the notice may be

transacted at such special meeting without the unanimous consent of

all present at such meeting.

( PART 4. FIXING RECORD DATE - For the purpose of determining the

members entitled to notice of or to vote at any meeting of members

or any adjournment thereof, or to express consent to or dissent from

any proposal without a meeting, or for the purpose of determining

the members entitled to receive any distribution or any allotment of

any rights, or for the purpose of any other action, the board shall

fix, in advance, a date as the record date for any such determination

of members. Such date shall not be more than fifty nor less than

ten days before any such meeting, nor more than fifty days prior to

any other action.

f PART 5. ACTION BY MEMBERS WITHOUT A MEETING - Whenever members are

required or permitted to take any action by vote, such action may be

f taken without a meeting by written consent, setting forth the action

so taken, signed by all the members entitled to vote thereon.

PART 6. PROXIES - Every member entitled to vote at a meeting

of members or to express consent or dissent without a meeting may

authorize another person or persons to act for such member by proxy.

( Every proxy must be signed by the member or his attorney-in-fact.

No proxy shall be valid after the expiration of eleven months from

the date thereof unless otherwise provided in the proxy. Every proxy

shall be revocable at the pleasure of the member executing it, except

as otherwise provided by law.

PART 7. ORDER OF BUSINESS - The order of business at all meetings

of members shall be as follows:

/ 1. Roll call

2. Reading of the minutes of the preceding meeting

3. Reports of committees

4. Reports of officers

5. Old and unfinished business

6. New business

7. Good and welfare

8. Adj oumments

PART 8. MEMBERSHIP DUES - Shall be as annually determined at a

regular membership meeting based on a 'recommendation made by the

f Board of Directors

ARTICLE FOURTH

DIRECTORS

•PART 1. MANAGEMENT OF THE CORPORATION - The corporation shall be

managed by the Board of Directors which shall consist of not less

than three directors. Each director shall be at least 21 years of

age.

PART 2. ELECTION AND TERM OF DIRECTORS - The term of directors

shall be staggered so that as nearly as possible one-third of the terms

expire each year. The initial meeting of members shall elect directors

for periods of one, two and three years; thereafter, at each annual

meeting of members, the membership shall elect directors to hold office

for a three year period. Each director shall hold office until the

expiration of the term for which he was elected and until his successor

has been elected and shall have qualified, or until his prior resignation

or removal. The number of consecutive terms which an individual may

serve as a Director shall not be greater than two.

PART 3. INCREASE OR DECREASE IN NUMBER OF DIRECTORS - The number

of directors may be increased or decreased by vote of the members or

by a vote of a majority of all of the directors. No decrease in

number of directors shall shorten the term of any incumbent director.

Any change in the number of directors shall be done so as to maintain

the staggered terms so as to result in as nearly as possible one-third

of the terms expiring each year.

PART 4. NEWLY CREATED DIRECTORSHIPS AND VACANCIES - Newly

created directorships resulting from an increase in the number of

directors and vacancies occurring in the board for any reason except

the removal of directors without cause may be filled by a vote of a

majority of the directors then in office, although less than a

quorum exists, unless otherwise provided in the certificate of

incorporation. Vacancies occurring by reason of the removal of

directors without cause shall be filled by vote of the members.

A director elected to fill a vacancy caused by resignation, death

or removal shall be elected to hold office for the unexpired term

{ of his predecessor.

PART 5. REMOVAL OF DIRECTORS - Any or all of the directors

may be removed for cause by vote of the members or by action of the

board. Directors may be removed without cause only by vote of the

members.

(PART 6, RESIGNATION - A director may resign at any time by

. ( giving written notice to the board, the chairman or the secretary

of the corporation. Unless otherwise specified in the notice, the

resignation shall take effect upon receipt thereof by the board or

such officer, and the acceptance of the resignation shall not be

necessary to make it effective.

PART 7. QUORUM OF DIRECTORS - Unless otherwise provided in

the certificate of incorporation, one-half of the entire board

shall constitute a quorum for the transaction of business or of any

specified item of business.

( PART 8. ACTION OF THE BOARD - Unless otherwise required by law,

the vote of a majority of the directors present at the time of the

vote, if a quorum is present at such time, shall be the act of the

board. Each director present shall have one vote.

PART 9. PLACE AND TIME OF BOARD MEETINGS - The board may hold

its meetings at the office of the corporation or at such other places,

either within or without the state, as it may from time to time

determine.

PART 10. REGULAR ANNUAL MEETINGS - A regular annual meeting of

the board shall be held immediately following the annual meeting of

members at the place of such annual meeting of members.

PART 11. NOTICE OF MEETINGS OF THE BOARD, ADJOURNMENT - Regular

meetings of the board may be held without notice at such time and

place as it shall from time to time determine. Special meetings of

the board shall be held upon notice to the directors and may be

called by the chairman upon eight days1 notice to each director

either personally or by mail or by wire; special meetings shall be

called by the chairman or by the secretary in a like manner on written

request of two directors. Notice of a meeting need not be given to

any director who submits a waiver of notice whether before or after

the meeting or who attends the meeting without protesting prior thereto

or at its commencement.

A majority of the directors present, whether or not a quorum is

present, may adjourn any meeting to another time and place. Notice

of the adjournment shall be given all directors who were absent at

the time of the adjournment and, unless such time and place are

( announced at the meeting, to the other directors.f

PART 12. EXECUTIVE AND OTHER COMMITTEE - The board, by

resolution adopted by a majority of the entire board, may designate

from among its members an executive committee and other committees,

each consisting of three or more directors. Each such committee

shall serve at the pleasure of the board.

PART 13. SECTOR COORDINATORS - Coordinators for major

industrial sectors represented in the corporation's activities will

be elected by the membership for a period of two years. Such

Coordinators will be entitled to attend board meetings, will be

expected to report at such meetings, but will not have voting rights

on the board.


of the Board of Directors or to express consent or dissent without

a meeting may authorize another person or persons to act for such

board members by proxy.

ARTICLE,FIFTH

OFFICERS

PART 1. OFFICERS, ELECTION, TERM - Unless otherwise provided

for in the certificate of incorporation, the board or membership may

elect or appoint a chairman, one or more vice-chairmen, a secretary

and a treasurer, and such other officers as it may determine, who shall

C have such duties, powers and functions as hereinafter provided.

All officers shall be elected or appointed to hold office for a

two year term. Each officer shall hold office for the term for

which he is elected and appointed and until his successor has been

elected or appointed and qualified.

PART 2. REMOVAL, RESIGNATION - Any officer elected or(

appointed by the board or membership may be removed by the board with

or without cause. In the event of the death, resignation or removal

of an officer, the board in its discretion may elect or appoint a

successor to fill the unexpired term. Any two or more offices

may be held by the same person, except the offices of chairman and

secretary.

PART 3. CHAIRMAN - The chairman shall be the chief officer

• of the corporation; he shall preside at all meetings of the members

and of the board; he shall have the general management of the

affairs of the corporation and" shall see that all orders and

resolutions of the board are carried into effect.

PART 4. VICE CHAIRMAN - During the absence or disability of

the chairman, the vice-chairman, or if there are more than one,

the executive vice-chairman, shall have all the powers and functions

of the chairman. Each vice-chairman shall perform such other

duties as the board shall prescribe.

PART 5. TREASURER - The treasurer shall have the care and

custody of all the funds and securities of the corporation, and shall

deposit said funds in the name of the corporation in such bank or

trust company as the directors may elect; he or his duly authorized

representative shall, when authorized by the Board of Directors, sign

and execute all contracts in the name of the corporation, when

countersigned by the chairman or his designate; he or his duly

authorized representative shall also sign all checks, drafts, notes

and orders for the payment of money which shall be duly authorized

by the Board of Directors and shall be countersigned by the chairman

or his designate; he shall at all reasonable times exhibit his books

and accounts to any director or member of the corporation upon

application at the office of the corporation during ordinary

business hours. At the end of each corporate year, he shall have

an audit of the accounts of the corporation made by a committee

appointed by the chairman, and shall present such audit in writing

at the annual meeting of the members, at which time he shall also

present an annual report setting forth in full the financial conditions

of the corporation.

PART 6. ASSISTANT-TREASURER - During the absence or disability

of the treasurer, the assistant-treasurer, or if there are more than

one, the one so designated by the secretary or by the board, shall

have the powers and.functions of the treasurer.

PART 7. SECRETARY - The secretary shall keep the minutes of

the Board of Directors and also the minutes of the members. He

shall have the custody of the seal of the corporation, and shall

affix and attest the same to documents when duly authorized by the

Board of Directors. He shall attend to the giving and serving of

all notices of the corporation, and shall have charge of such books

and papers as the Board of Directors may direct; he shall attend to

such correspondence as may be assigned to him, and perform all the

duties incidental to his office. He shall keep a membership roll

containing the names, alphabetically arranged, of all persons who

are members of the corporation, showing their places of residence

and the time when they became members.

PART 8. ASSISTANT-SECRETARIES - During the absence or

disability of the secretary, the assistant secretary, or if there

are more than one, the one so designated by the secretary or by

the board, shall have all the powers and functions of the secretary,

ARTICLE SIXTH

SEAL

SEAL - The seal of the corporation shall be as follows:

ARTICLE SEVENTH

AMENDMENTS

AMENDMENTS - The by-laws may be adopted, amended or repealed

by the members at the time they are entitled to vote in the election

of directors. By-laws may also be adopted, amended or repealed by

the Board of Directors but any by-law adopted, amended or repealed

( by the board may be amended by the members entitled to vote thereon

as hereinbefore provided.

If any by-law regulating an impending election of directors is

adopted, amended or repealed by the board, there shall be set forth

in the notice of the next meeting of members for the election of

directors the by-law so adopted, amended or repealed, together with

( a concise statement of the changes made.

UNITED NATIONSDEVELOPMENT PROGRAMME

PROGRAMME DBS NATIONS UNIESPOUR LE DEVELOPPEMENT

TO:

FROM:

SUBJECT:

ONE UNITED NATIONS PLAZA

NEW YORK, N.Y. 10017

INTEROFFICE MEMORANDUM

Mr. Rafeeuddin Ahmed, Under-Secretary-GeneralChef du CabinetExecutive Office of the Secretary-GeneralUnited Nations

Bradford Morse

Dote:

FILE NO.:.

1972

SENDER'S TELEPHONE EXTENSION:

Industry Council for Developingopmetit

When I last spoke to the Secretary-General about the IndustryCouncil for Development (ICD), he indicated that he hoped that themodalities for co-operation with this Organization (which wasestablished as an independent, non-governmental body outside theUnited Nations by a number of former members of the former FAO-IndustryCo-operative Programme) would meet with approval by the UNDP GoverningCouncil in June. He also offered to convene a brief meeting ofrepresentatives of developing country members of the Governing Council(list attached) to indicate the importance attached to co-operationwith the ICD.

As you know, the principal opposition to co-operation with theICD has come from the Swedish Government, but most if not all of thegovernments of developed countries on the Governing Council quitestrongly support the proposed modalities for co-operation with theICD. (The other Nordic countries may not be enthusiastically in favourof relations between ICD and the United Nations system, but in my viewthey will not oppose it.) Mr. Brown and I have had numerous consultationswith representatives of Sweden on this issue, and I am hopeful that ifthe developing countries themselves are on record in favour of the ICD,this would go far in overcoming objections which still may be raisedby the Swedish Government.

It is my intention to bring to the attention of the GoverningCouncil for their notice the attached set of guidelines which wouldcover modalities of co-operation with a wide range of external organiza-tions, including the ICD. The guidelines have been drafted in such a wayas to take into account all possible objections that had been raised byrepresentatives of the Swedish Government. For example, the guidelinesseek to ensure that no activities are undertaken in collaboration withUNDP without express government requests, that the membership andobjectives are not inconsistent with those of UNDP, that they do notpromote the pecuniary interests of participating members (or firms, asin the case of ICD) and that labour associations wishing to do so arefully welcome to collaborate with UNDP.

UNITED NATIONSDEVELOPMENT PROGRAMME

PROGRAMME DES NATIONS UNIESPOUR LE DEVELOPPEMENT

- 2 -

I realize that the Secretary-General's time is extremelylimited, but if he does wish to consider such a meeting withrepresentatives of developing countries, I am confident that itcan be brief and highly useful in helping to ensure that thereare no further obstacles placed before what in my view can be asignificant source of collaboration between industry and theUnited Nations in its efforts to serve developing countries.Should it be possible for the Secretary-General to fit such ameeting into his schedule, I would be pleased to assist in everyway in providing briefing materials and the required backgroundinformation required.

Affc ct c ^ *#*- * "zr$ •

1979 Membership of the UNDP Governing Council

Term of office expires

on 31 December

-'•ARGENTINA ..................................................... 1980AUSTRALIA ..................................................... 1979AUSTRIA ....................................................... 1981

/BANGLADESH .................................................... 1981BELGIUM ....................................................... 1979

/-BRAZIL ........................................................ 1979/BURUNDI ....................................................... 1979

CANADA ........................................................ 1979/CHINA ......................................................... 1981^COLOMBIA ...................................................... 1981/-CONGO ......................................................... 1979.--CUBA*-, ......................................................... 1981/CZECHOSLOVAKIA ................................................ 1980^DEMOCRATIC YEMEN .............................................. I960--ECUADOR ....................................................... 1980/-EGYPT ......................................................... 1981--FIJI .......................................................... 1981

FINLAND ....................................................... 1980FRANCE ........................................................ 1979

/GAMBIA ........................................................ 1981GERMANY, FEDERAL REPUBLIC OF .................................. 1980

/-GREECE ........................................................ 1981^GUINEA ........................................................ 1979ÎNDONESIA 1? .................................................... 1980ITALY ......................................................... 1981

/IVORY COAST ................................................... 1980JAPAN ......................................................... 1981

/JORDAN '. ......... " .............................................. 1980/KENYA ......................................................... 1980/KUWAIT 4 ....................................................... 1979/-MADAGASCAR .................................................... 1979/MEXICO ........................................................ 1981

NETHERLANDS ................................................... 1980NORWAY ....... . ................................................. 1979

-"PAKISTAN ...................................................... 1979/-POLAND ........................................................ 1980ROMANIA ....................................................... 1979/SENEGAL ....................................................... 1980/•SIERRA LEONE .................................................. 198l

SPAIN ......................................................... 1980/SWAZILAND ..................................................... 1979

SWEDEN ........................................................ 1979SWITZERLAND ................................................... 1980

/•THAILAND ...................................................... 1979/TRINIDAD/TOBAGO ............................................... 1980UNION OF SOVIET SOCIALIST REPUBLICS ........................... 198!UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND ... ....... 1981UNITED STATES OF AMERICA ...................................... 1981

77CMJ

Sixth Draft5 April 1979

GUIDELINES GOVERNING AGREEMENTS BETWEEN THE UNITED NATIONSDEVELOPMENT PROGRAMME AND ORGANIZATIONS EXTERNAL TO TI5E UNITEDNATIONS SYSTEM CONCERNING THE PROVISION OF DEVELOPMENT FUNDS

1. There are a number of resolutions of the United Nations General Assembly

which emphasize the importance of facilitating development by making available

additional technical and financial resources.

2. As one action in response to these resolutions, the Administrator has

determined that there should be available, for general information and use, guide-

lines which establish the basic conditions which must be met by institutions and

organizations external to the United Nations, including educational, industrial,

labour, scientific, technical and trade institutions, organizations and associations,

and similar organizations (hereinafter called Cooperating Organizations) to provide

development inputs in collaboration with UNDP.

3. Detailed operational agreements will be concluded with individual Cooperating

Organizations in respect of specific assistance projects, but all such agreements

will be subject to the following guidelines?

a) Cooperating Organizations must be non-profit,and non-political.

Membership may be composed of individuals or undertakings what-

ever their form of organization or ownership and may be drawn fron

developed countries, developing countries, or both.

b) For any proposed plan of assistance, a Cooperating Organization must

satisfy the Administrator that one of its objectives is to assist the

country or countries concerned in achieving their economic and social

goals and not to promote the particular interests of any members

which may participate in activities carried out in collaboration with UNDP.

c) Cooperating Organizations should not have objectives or be engaged in

any activities which, in the judgement of the Administrator, are

incompatible with the Charter and objectives of the United Nations.

- 2 -

d) The Administrator shall refrain fron entering into agreements with

any organization which, in his judgement, restricts membership in

an unreasonable or discriminatory manner.

e) The services of the Cooperating Organizations should be available

either directly to the developing country, at the country's direct

request, or by request through the United Nations development system,

with the decision as to which method should be used being left solely

to the determination of the developing country concerned.

f) In any project or programme of assistance Cooperating Organizations

will act only in agreement with an interested Government and in full

harmony with its national priorities. Where appropriate and when

requested by the Government concerned, Cooperating Organization will

utilize the UNDP Country Prograrnre as a frame of reference, and the

' agreed services provided and activities undertaken through the facilities

of UNDP must be carried out in full accordance with UNDP's standing

policies and procedures.

g) Services provided by Cooperating Organizations under these guidelines

may be either at their own expense or be compensated by UNDP in

accordance with UNDP's financial regulations and rules.

h) Reports, recommendations or findings which Cooperating Organizations

may prepare with regard to activities carried out with UNDP under this

agreement may not be published without the consent of the Government or

Governments concerned and UNDP.

i) Consultations shall take place as required between Cooperating Organizations

and UNDP through their authorized representatives on aspects of activities

carried out in collaboration with UNDP.

A..

- 3 -

j) The publications and other documents of Cooperating Organizations

will show in suitable form that they are operated as independent,

self-funded organizations with no linkages to UNDP other than those

derived from any programmes or projects carried out pursuant to these

guidelines.

k) Where applicable, the general conditions required by UNDP for activities

carried out by subcontractors (see UNDP/ADM/HQTRS/210/Add. 1 of

22 October 1975) will apply to activities carried out by Cooperating

Organizations under these guidelines unless otherwise agreed through

specific arrangements.

U N I I I! I) N A I I O N S

INTEROFFICE MEMORANDUM

, /, f i/ f; , K I

N A T I O N S ; imj-'tf

MEMORANDUM INTERIEUR

" 7

TO:A:

THROUGH:S/C DE:

FROM:DE:

f"r, A.I V n u l . y K x t ' d i l . i vr A:;:1 , i :: l.. 'inl.

to the Pecretary-GeneralOffices of the Secretary-General

Wahid II. TarziDirector, Division of Recruitment

March 1070

REFERENCE:

SUBJECT:OBJET: Mr_. Alexander 0. Friedri^ch (Federal

of Germanv~]

Mr. Friedrich applied for a U.IT. assignment at the T)-2level last October. I r>;nr hin at Headquarterr; ; he nade avery rrood personal impression. He is 5r> years old and hasbeen with FA.O since 1959 starting at the P-3 level and finishinpat D- \ From lof^ to 107" he was with the Industry Co-onerative

which is a joint KAO/IFJDP project.

I have referred his paners to UTTTTlO "hut the ExecutiveDirector has advised that he does not have at nresent a suitablesenior post at his level. The sane appears to apply to Genevaand he could also be considered for Mr. Dadzie's office. Iwill send his papers to the Director-General for Developnent andat your surftestion also to Mr. r>ahlg:ren for consideration arainstanticipated vacancies.

7.

AR/JEB

cc:SGFile:ICD x ref^Personne

-F

13 March 1979

Dear Sir George,

Some days ago you asked me about the fate of Mr. GuntherFriedrich and I made the necessary enquiries with our Officeof Personnel and with UNDP. There is, unfortunately, notmuch I can add to what I have already told you on, the phone.The Office of Personnel looked into the possibilities ofemploying Mr. Friedrich in the Secretariat in New York but novacancy at his level became apparent. As a next step, TJMIDOwas approached with a view to finding a senior industrialadvisory post for him, UHIDO's reply, however, was negative.Mr. Morse's efforts to find a suitable position within U1-3DPseem to have been equally unsuccessful. He did, however,agree to an extension of Mr. Sriedrich's contract, which wasdue to run out some time last autumn, until the end of February1979, when Mr. FriedeSich completed twenty years of service.

1 regret to say that, eealistically speaking, there doesnot seem to be much hope at the present time for Mr. Friedrichto get an adequate post in the United Nations. He has, ofcourse,been seconded by his Government and could thereforereturn to the German civil service if he so wished. I am sor??ythat I cannot tell you anything more positive.

With kind regards,

Yours sincerely,


Sir George BishopChairmanBooker McConnell LimitedBucklersbury House83 Cannon StreetLondon, EC4N 8EJ


March 12, 1979


United NationsNew York

Dear Mr. Rohan:

I thought you might like to have a copy of the report ofthe first session of ICD which was held in New York on26 February 1979.

We considered the meeting verv successful in terms of thesupport which was evident both from the UN and industry.In this regard, the Secretary-General's letter was highlyappreciated and is being distributed with our documentation.

I am presently working with UNDP staff officers to identifyneeds that can be the basis for developing country govern-ments to request our services.

We all regretted that you were not able to join us for lunchthat dav. May I express again our sincere thanks for yourcontinuing support.

Si

Walter W.' SimonsExecutive Director





First Session

9.30 a.m., 26 February 1979

821 UN Plaza, New York, N.Y.

Chairman % Sir George Bishop

Summary Report

Attachments

Letter from Secretary-General to Chairman - 24 February 1979

Prospectus

Bylaws

Seed industry project description

Paper by 0. Ballarin on members from developing countries

1979 Budget


I General

ICD was established in January 1979 to carry on the concept- which characterized the Industry Cooperative Programme(ICP) - of involving industry's leadership and expertise inthe development process. Through its action-orientationICD will provide practical assistance to governments inachieving national development goals.

In his opening comments, the Chairman noted the strongpolitical support which ICD has attracted from countries withboth market and centrally-planned economies in developed anddeveloping areas. The continuing strong backing of theSecretary-General was evidenced by his letter of 24 February(attached) which was delivered to the Chairman during themeeting.



2.

In a luncheon address that day, Mr. Bradford Morse, UNDPAdministrator, further emphasized the UN system's supportfor the concept of ICD, particularly the need for usingindustry's management expertise in the development ofhuman skills. Luncheon guests also included representa-tives of the Federal Republic of Germany, Hungary, France,the Netherlands, Poland, United Kingdom and the UnitedStates delegations to the UN which have supported theestablishment of ICD.

II Concept and Legal Structure of ICD

The draft prospectus was revised to provide greater clarityand better organisation. The final approved text isattached.

III Organisation of ICD

A. Confirmation of Membership.

At the time of the meeting, 28 companies had confirmedtheir intention to join ICD and another 10 had indica-ted strong interest.

B. Certificate of Incorporation.

One change (deletion of the word "charitable") wasrecommended.

C. Bylaws.

The proposed changes were approved. Several other minoramendments were also approved. The final text is attached.

D. Nomination and Election of Board of Directors

It was agreed that the minimum size of the Board ofDirectors should be nine officers and directors. Inorder to provide continuity, the following interim Boardof Directors was elected to serve until the first ICDAnnual Meeting in June 1979:

Chairman: Sir George Bishop, Chairman, Booker McConnellLtd., London

Vice-chairman: Dr. J.C. Ramaer, Deputy Managing Director,N.V. Philips' Gloeilampen-fabrieken, Eindhoven

Vice-chairman; Mr. A.A. Thornbrough, Chairman, Massey-Ferguson Ltd., Toronto

Treasurer; Mr. . J.F.P. Tate, Executive Director, Tate &Lyle Ltd., London

Assistant Treasurer; Mr. G.F. Landegger, President,Parsons & Whittemore, Inc.,New York

3.

Dr. C.L. Angst, General Manager, Nestle Alimentana S.A.,Vevey, Switzerland

Mr. K. Kasareczki, General Manager, Agrober, BudapestMr. W. Kniep, President, CPC Europe Ltd., BrusselsMr. R. Violot, Directeur des Recherches Economiques,

Compagnie du Nord, Paris

E. Confirmation of Staff Appointments.

The following appointments were confirmed:

Executive Director - Walter W. SimonsExecutive Assistant - Jennifer Dierckx de Casterle

F. Board Committees.

Mr. W. Kniep was appointed head of the MembershipCommittee. Establishment of an Executive Committee ofthe Board was left until the Annual Meeting.

The Board will set up a committee to arrange nominationsfor elections at the Annual Meeting.

The Meeting expressed its thanks to Messrs. Arthur Schwartzand John Peters of the Parsons & Whittemore legal staffwho handled incorporation proceedings and other legalmatters for ICD.

G. Sector Coordinators.

The following appointments as Sector Coordinators wereconfirmed, on an interim basis, until the Annual Meeting:

Agro-Chemical Industry - Mr. A.J. Maier, Imperial ChemicalIndustries, Ltd.

Seeds Industry - Mr. J.I. Hendrie, Shell InternationalChemical Co. Ltd.

Dairy Industry - Mr. J.B. Jensen, Danish Turnkey Dairies Ltd,

Food Loss Prevention - Dr. E. Ostermann, Voest-Alpine A.G.

Agricultural Mechanisation - Mr. H.A.R. Powell, Massey-Ferguson Ltd.

Forestry Production & Harvesting - Mr. W.E. Franklin,Weyerhaeuser Co.

Mechanical Wood Processing - Mr. J.G. Stokes, AutomatedBuilding Components Inc.

Training & Human Resource Development - Mr. N. Schenet,International Minerals andChemicals

4.

Additional Sector Coordinators can be appointed as theneed arises. The technical scope of sectors will beinterpreted broadly; for example, agricultural mechani-sation will be extended to include land and waterdevelopment.

IV Work Plan for 1979

The Chairman noted the progress already made in terms ofpriorities for the 1979 work plan, established by thePolicy Working Group in December 1978,

A. The Council has been established as a legal and opera-tional entity.

B. Former ICP members interested in ICD have formed thenucleus of the new membership.

C. Working agreements with key UN system organisationswere being negotiated at a satisfactory rate.

UNDP - The content of the proposed agreement between UNDPand ICD, which had been agreed after a number of drafts,will now be restyled as Guidelines for Cooperation whichthe Administrator will issue after they have been approvedby the UNDP Governing Council in June 1979. Such Guide-lines should now be acceptable to all governmentsconcerned, and provide ICD with the basis for its coop-eration with developing country governments through UNDP.

Staff work to identify needs for country missions andother ICD activities in cooperation with UNDP will beginimmediately so that government requests can be consideredas soon as possible.

World Bank Group - Discussions on overall cooperationbetween the World Bank Group and ICD have been initiated.Cooperation at the staff level on specific projects, inparticular the seeds industry development project, isunder way.

Habitat - Exploratory discussions on Habitat/ICD coopera-tion have begun. Such arrangements could extend ICD'ssectoral activities to include low-cost housing andconstruction industries in developing countries.

UN Capital Development Fund (CDF) - CDF/ICD cooperationhas already begun under an informal agreement in whichCDF considers ICD as an impartial source of industrial

expertise and advice to help evaluate the technicaland economic viability of project proposals. Aninformal expert panel, composed primarily of SectorCoordinators, is available to CDF to respond to requestsfor such advice.

Under this arrangement, ICD has already provided adviceon two project proposals for Bangladesh: Mr. Jensen,Dairy Industry Coordinator, has evaluated and reportedto CDF on a proposed dairy project; and Nestle, throughDr. Angst, has provided an evaluation of a proposedpineapple canning plant project.

Other UN Organisations - Practical arrangements forcooperation will also be pursued with the World FoodCouncil, FAO and UNIDO.

D. Working Relationships with Developing Country Governments.

The Meeting agreed that ICD should pay particular atten-tion to food and agricultural development since this isthe basic problem area for many developing countries.

Contacts with such governments will be initiated boththrough the UN system (particularly UNDP) and directly.All ICD activities will be based upon government requests.

E. Sectoral Activities.

Several Sector Coordinators have already initiatedactivities:

Agro-Chemical Industry - At the invitation of USAID,Mr. Maier will prepare proposals on two subjects discussedwith officials of that agency. These proposals willinclude:

i) A pilot training programme in pesticides managementfor use at the district and farm level. Audio-visual and text materials appropriate for semi-literate audiences would be designed, takingadvantage of the results of the work done previouslyby ICP.

ii) The updating of a manual on guidelines for esta-blishing pesticide formulation plants in developingcountries.

Seeds Industry Development - Mr. Hendrie reviewed theUSAID-funded project (description attached) which hasbeen approved and is now ready for implementation.Recruitment of a project manager, contacts with seedindustry companies and associations worldwide, andother initial activities will begin immediately.

Agricultural Mechanisation - The Coordinator attended(in his personal capacity) an informal FAO meetingin December 1978 to discuss formation of a panel ofexperts on agricultural mechanisation. If this panelis organised, its efforts could provide valuableguidance to ICD's work in this sector; ICD might alsoassist the panel.

Possible ICD cooperation in a regional farm mechanisa-tion project under UNDP auspices is under discussion.

F. Cooperation with Non-UN Organisations.

Cooperative activities are also being explored withseveral other non-UN organisations, including theInternational Development Research Center (IDRC) inOttawa, and the International Agricultural DevelopmentService (IADS).

G. Membership Development.

The Board's Membership Committee will set up criteriaand a strategy for recruiting members and establishinglevels of representation from companies in developedand developing countries.

Mr. Ballarin presented a paper (copy attached) for theBoard's consideration, outlining some new ideas forattracting developing country members.

V Financial Matters

A. 1979 Budget

The proposed 1979 budget (copy attached) was approved.

To finance this budget, a membership fee of $7,500 percompany for 1979 was agreed.

In order to liquidate outstanding ICP debts to bothFAO and UNDP, those former ICP members who have notpaid their 1978 membership fees will be requested todo so.

7.

Although ICD is essentially self-financed, it wasthe consensus of the Meeting that cost sharingarrangements on an equitable basis should be con-sidered in cooperative activities with UNDP andother organisations.

B. Other Sources of Finance for ICD

Bilateral agencies, foundations and other organisa-tions may be sources of funds for specific ICDprojects, as in the case of the seeds industrydevelopment project.

VI Time and Place of Next Meeting

ICD will hold its Annual Meeting, tentatively scheduledfor 28-29 June, 1979, probably in Europe. Details willbe confirmed to members as soon as possible.

QF~3—<-v i !, -i\ V*\ FTHyVJ..A[.h?..v!>y


PROSPECTUS

The members of the Council share the following views:

1. The development of productive capacity to eliminate povertyin the world is a top priority task for mankind.

In supporting this task, the Council specifically undertakesthat its activities will be carried out for the purpose ofencouraging economic and social development in developingcountries, and not to promote the commercial interests ofits members.

2. Setting the priorities for development policies and objec-tives is the responsibility of national and internationalpublic authorities.

3. In our interdependent world, the actual development processcannot take place without mobilizing a number of essentialresources, one of which consists of managerial and otherpractical capabilities acquired over years in creating andexpanding viable enterprises.

4. Whatever the economic system or its stage of development,the creation and management of productive capacity requiressimilar capabilities.

5. The development process requires a continuous exchange ofviews between national and international public authoritiesresponsible for development policies, and those with themanagerial and other capabilities to create productivecapacity. This principle has been reconfirmed in resolutionsof the UN General Assembly.

6. Enterprises from all countries have a responsibility tocommunicate and cooperate with government.and internationalorganisations in furthering development, especially concen-trating on priority sectors.



- 2 -

7. The primary responsibility of company managements is tobuild and run viable productive capacity through theirenterprises. However, apart from this primary responsibility,managers and experts from enterprises should be prepared tospend time and effort on the dialogue with public authoritieson development problems.

8. The Industry Council for Development has been created tostimulate the dialogue on practical development problemsbetween public authorities and enterprises. The Secretary--General of the. United Nations has requested the Chairman ofthe Council to establish these new arrangements so that theUN system can make use of industry expertise.

9. In these activities, the Council seeks to create understandingby its membership of development objectives set by the UnitedNations and .its member, governments, on the one hand; and,, onthe other, understanding by United Nations organisations andtheir member governments of industry's role in facilitatingthe solution of practical development problems.-

10. To this end, the Council organises:

- country missions

- expert working groups

- other forms of dialogue

when invited to do so by governments directly through theUnited Nations or other international organisations, or onits own initiative.

THE ORGANISATION OF ICD

The Council is an independent, non-profit organisation,financed primarily through membership fees and othercontributions.

The Council's members are companies from market and centrally-planned economies in developed and developing countries.Individuals can be invited to become members on the basis oftheir specialknowledge and experience.

The Board of the Council is elected by the members.

The headquarters of the Council are located in New York in thevicinity of the UN Secretariat to facilitate the organisationof the work in cooperation with governments and with the UNsystem on the basis of working agreements, as requested by theUnited Nations. The Council will set up offices in otherlocations as its work may require.

THE SECRETARY-GENERAL

24 February 1979

Dear Sir George,

I have been advised by Mr. Morse of the steps which

you and your colleagues have taken to establish the

Industry Council for Development.

I understand that arrangements for cooperation between

the new institution and UNDP have been discussed with you

and that Mr. Morse intends to submit them to the Governing

Council of the UNDP in June of this year. I am confident

that these arrangements will provide the basis for the

establishment of a constructive relationship.

As you are aware, I attach great importance to the

contribution which industry can make to the development

process and I very much appreciate the efforts you and

your colleagues are making in this field.

With best regards.

Yours sincerely,

Kurt Waldheim

Sir George BishopChairmanBooker McConnell LimitedLondon

Agenda Item 4.D.


(USAID-Funded)

The following project description is largely excerpted "from theUSAID project document.

General


In developed countries, effective commercial seed enterprises arealmost universally present. Whether these are in the public or theprivate sector (good examples of both could be cited), they insurea reliable and economic supply of this important input to all farmers.In contrast, most developing countries do not have such effectivecommercial sources of seed. Governmental or other public sectorseed agencies typically are ineffective and inefficient in suchcountries. The result is that few farmers, even large-scale publicfarming enterprises, have access to reliable sources of good seed.




- lack of adequate and consistent support for realistic seedenterprise operation. This often results from the absenceof clear recognition and conviction by government officialsof what needs to be done and what is required to do itsuccessfully;

- lacking or insufficient institutional framework


lack of trained specialists and manpower. This is often themost serious constraint of all.. The quality of any develop-ment programme is directly related to the quality of thehuman resources involved. Initiation of adequate trainingprogrammes therefore is a fundamental requirement forsuccessful seed industry" development;

- lack of adequate and continuing financing also is a commonconstraint. This is often directly related to lack of recog-nition and support from governments, and particularly tofailure to recognize that the need for the seed input is acontinuing one which must be financed on a rational, self-sustaining basis.








This will necessitate contacts with all interested commercialseed firms, both private and public, in developed countries.Resources and cooperation of seed trade associations, such asthe International Seed Federation (PIS), InternationalAssociation of Plant Breeders (ASSINSEL), the American SeedTrade Association (ASTA) and others will be utilized to thefullest possible extent in making this survey. Also, closeliaison will be maintained with the Seed Industry DevelopmentProgramme (SIDP) of FAO, and with the AID-funded project atMississippi State University..

3.





Cooperation from developed country seed enterprises will besolicited, initially from members of ICD. However, since manyleading seed firms and the smaller-scale seed enterprises donot presently belong to ICD, it will be necessary at an earlystage to invite participation by non-member firms.

4.


3. Training



Responses from interested commercial firms in developedcountries during project development, and previous experiencewith AID-sponsored training utilizing the facilities and coope-ration of U.S. seed firms indicates good opportunities forcooperation in arranging for adequate training programmesinvolving the assistance and facilities of commercial companies.It is estimated that 6 to 10 trainees per year can easily beaccommodated in available U.S. firm facilities alone. Firms inother developed countries also have indicated willingness andinterest in cooperating in the training programmes.

5.


The grant will be executed and implemented by the Industry Councilfor Development. The project director will be located in ICD head-quarters, New York City and will report directly to the ExecutiveDirector of ICD or to an official he may designate. ICD will enlistthe support of other agencies, i.e. FAO, UNDP, the World Bank, andother organisations of the U.N. system.


(USAID-Funded)

Expenditures over the life of project are estimated to be as follows;

FY 79 FY 80 FY 81 FY 82

12/1/78- 12/1/79- 12/1/80- 12/1/81-Item 11/30/79 11/30/80 11/30/81 11/30/82

Project Director 46,000 48,000 52,000 57,000(includes base +fringe)

Secretary

Overhead

Consultants

Travel

Training

Other Direct Costs

TOTAL: 127,950 224,550 245,300 227,200

14,000

8,250

25,000

20,000

-

14,700

15,000

8,850

15,000

15,000

108,000

14f700

15,500

9,600

15,000

15,000

123,000

15,200

16,000

10,500

10,000

10,000

113,000

10,700

Agenda Item 5.A.

1 9 7 9 B U D G E T

BUDGET SUMMARY

The ICD budget for 1979 is projected on the assumption thata nucleus staff of four employees would provide the basicdirection, administration and clerical services for programmeactivities. To this nucleus would be added project personnel(as with the seeds industry project) funded separately; andpossible secondments from member companies for specificperiods of time. It is assumed that staff members in thelatter category would be fully funded by their sponsors.In addition, we have budgeted for consultants to assistspecific programme activities. ICD would have to providespace and supporting services for secondments, consultantsand project staff. However, with employees in the lattercategory, some overhead and other charges can be made againstproject funds.

This approach would allow the maximum flexibility in staffingfor fast results, while also allowing us to seek and considerindividuals for permanent professional employment dependingupon the volume and direction of ICD business.

The following summary is supported by several annexes containinga further breakdown of individual cost items.

I Nucleus ICD Staff

Personnel . . . . . . . . . $ 95,420

Employee Benefits . . . . . . 26,285

Operational . . . . . . . . 51,190

One-Time Costs . . . . . . . 9,485

Travel & Hospitality . . . . . 28,000 $210,380

II Consultants

Fees . . . . . . . $25,000 - 40,000

Travel, Supporting Services,Benefits, etc. 25,000 $ 65,000

2.

Ill Project Activities

Staff and supporting activities would be fullycovered by project funds. Some overhead andother nucleus staff costs may be charged toprojects.

IV Seconded Staff

Costs for personnel and employee benefits wouldbe covered by sponsoring company.

Estimated secretarial and other supportingservices . . . . . . . $25,000

V Mi s ce1laneous

Possible additional operational, employeebenefits and one-time costs for categoriesII, III and IV above, approximately . . . $15,000

TOTAL: $315,380


First Session

09.30 hours, 26 February 1979

ICD Headquarters, New York


Sir George Bishop, Chairman, Booker McConnell Ltd., LondonDr. J.C. Ramaer, Deputy Managing Director/ N.V. Philips' Gloeilampen-

fabrieken, EindhovenMr. A.A. Thornbrough, Chairman, Massey Ferguson Ltd., TorontoDr. C.L. Angst, General Manager, Nestle Alimentana S.A., VeveyDr. O. Ballarin, Member of the Board, Eucatex, Sao PauloMr. J.R. Bel, Ingenieur en Chef, SODETEG, Le Plessis-Robinson, FranceMr. M. Belpomme, President Directeur general du Groupe SODETEG,

Le Plessis-Robinson, FranceMr. L.H. Bloom, President, Unilever United. States (representing

Unilever N.V., Rotterdam)Mr. H. Bondi, Marketing Manager, Chemap A.G., Mannedorf, SwitzerlandMr. F. Colombo, Director of Public Affairs, FIAT US (representing

FIAT S.p.A., Turin)Mr. S.H. Doggett, Director of Operations, Cyanamid International,

Wayne, New Jersey, USAMr. J.C. Ducroux, Vice President, New Court Securities Corporation,

New York, New YorkMr. R.A. Foss, Supervisor, Agriculture Section, Caterpillar Tractor

Co. Ltd, Peoria, Illinois, USAMr. H.F. Harris, Vice President, CPC International Inc., Englewood

Cliffs, New Jersey, USAMr. J.I. Hendrie, Shell International Chemical Co. Ltd., LondonMr. Y. Huttunen, Vice President, Kemira Oy, HelsinkiDr. R.E. Jester, Program Manager, IBM Corporation, Armonk, New YorkMr. Kubiak, Polservice Foreign Trade Enterprises, WarsawMr. W. Kniep, President, CPC Europe Ltd., BrusselsMr. G.F. Landegger, President, Parsons & Whittemore Inc., New YorkMr. A.J. Maier, Imperial Chemical Industries Ltd., Surrey, U.K.Dr. Ch. Merieux, President, Fondation Marcel Merieux, Lyon, FranceMr. G.R. Moore, General Manager, Stauffer Chemical Co., Westport,

Connecticut, USAMr. J. Pulsifer, FMC Corporation, Philadelphia, USA


TELEPHONE: (212) 867.5017 CABLE: INDUSCODEV TELEX: 23 89 76

- 2 -

Mr. R. Reuter, Vice President, Kraftco, Chicago, USAMr. N. Schenet, Vice President, International Minerals & Chemical

Corporation, Northbrook, USAMr. P.W. Schutz, Executive Vice President, Kloeckner-Humboldt

De.utz A.G. , KOlnDr. J. Szabo, Director, Agrip, BudapestMr. J.F.P. Tate, Executive Director, Tate & Lyle, LondonDr. R. Treichler, Technical Services Manager, H.D. Hudson Manufacturing

Co., Washington, D.C.Mr. R. Violot, Directeur des Recherches Economiques, Compagnie du

Nord, ParisMr. P. Vilgrain, Directeur G£n£ral, Grands Moulins de Paris, Paris

Mr. W.W. Simons, Executive Director, ICDMrs. J. Dierckx de Casterle", Executive Assistant, ICD

RA/LH cc: SG cc. : |Mr..Morse

bf :

Dear Sir George,

I have been advised by Mr. Morse of the steps which

you and your colleagues have taken to establish the

Industry Council for Development.

I understand that arrangements for cooperation between

the new institution and UNDP have been discussed with you

and that Mr. Morse intends to submit them to the Governing

Council of the UNDP in June of this year. I am confident

that these arrangements will provide the basis for the

establishment of a constructive relationship.

As you are aware, I attach great importance to the

contribution which industry can make to the development

process and I very much appreciate the efforts you and

your colleagues are making in this field.

With best regards.

Yours sincerely,

Kurt Waldheim

Sir George BishopChairmanBooker McConnell LimitedtBttdbihersbury House, 83 Cannon Street, EC4N 8EJ

Industry Council for Development ff-frfi322 February 1979


United Nations, Rm. 3802ANew York, New York 10017

Dear Mr. Rohan:

I thought you might like to see the documents which we areusing for Monday's ICD meeting.

Bradford Morse and G. Arthur Brown will be meeting withSir George Bishop and myself on Saturday to further discussthe UNDP agreement.

As of the moment, we are expecting thirty-one representa-tives from thirty companies to attend both the meetingand the luncheon. In addition, we have invited represen-tatives from six U.N. delegations who have been particularlysupportive of our efforts to establish ICD.

We look forward to having you as our guest on Monday.

Yours einceraly,

Walftfcfef'W./SfimonsExecutive Director




ICD COOPERATION WITH DEVELOPING COUNTRY GOVERNMENTS

ICD's objective is to support economic and social advancement in

developing countries according to their national goals* It does

this by cooperating with government authorities in making industry

expertise - particularly managerial, technical, scientific, and

distribution know-how - available on a completely impartial basis

to assist priority development activities. ICD acts only upon

government request. These requests may be made directly to ICD

or channeled through the United Nations system or other development

organisations.

Council members are commercial enterprises in all parts of the

world and from all economic systems. They are represented in ICD

by senior executives. Such representatives accept an obligation,

beyond their duty as industrial managers, to spend time and effort,

and to share their knowledge in a dialogue on development problems

with national and international public authorities responsible for

establishing development policies and objectives. Individual autho-

rities outside industry may also become ICD members under the same

stipulation.

The Council provides a channel for dialogue between leaders of

government, industry and the UN system to facilitate cooperative

action.

ICD is fully self-financed through membership fees and project

funds from bilateral agencies, foundations and other development

organisations.

2.

ICD services available to government includes

Overall Development Planning

Missions of senior industrialists will be made available as

impartial experts to counsel and assist developing country autho-

rities in preparing and evaluating national development plans, or

country programmes administered by UN system, bilateral and other

development organisations.

Sector Analyses

High-level executive/expert missions and task forces can be orga-*

nized to assist government planners in their analysis and evaluation

of sector problems, the performance of priority programmes, options

for new activities and the viability of proposed projects.

The nucleus for such working groups and task forces already exists

in such agro-industrial sectors as dairy, meat production, nutrition,

forestry, farm mechanisation and animal health, and others can be

organized depending upon government request.

Technology Transfer

Working groups and task forces as well as workshops and individual

expert visits can be organized by ICD to assist government and UN

system officials on technology development, including transfer

from external resources and the generation or adaptation of tech-

nology to meet local requirements.

Investment and Other Forms of Industrial Cooperation

ICD can assist governments which wish to attract foreign industrial

cooperation in priority development projects. This may include

recommendations for new approaches in partnership formulas or

ways to improve incentives for attracting foreign industrial

cooperation.

For selected priority projects ICD may act as an impartial broker

to help evaluate project viability and to assist implementation

by bringing together managerial, technologicalr financial and

local partner resources.

Human Resources Development^ L" T1~ " ~ 1--- T I - ^

ICD will help governments plan and evaluate programmes and acti-

vities to meet training and management development needs for

development priorities. Through sector working groups and training

task forces, industry expertise can be focused on organisation and

implementation of specific programmes . ICD assistance is also

possible in providing information for the technical content of

training programmes, particularly in basic job skill areas.

ICD can seek industry's cooperation in making company training

facilities and training experts available for specific government

priority requirements.

Information jSxchange

Seminars, workshops and briefings can be organized for developing

country government officials on specific technical or economic

subjects, particularly those in which industry know-how and

operating expertise is a significant factor.

4.

Publications such as manuals, technical papers and conference

proceedings, as well as audio-visual and other communications

projects may be supported by ICD in subjects of major importance

to development.

ICD's Operating Principles Are;

- ICD acts only upon government request, either directly to

ICD or through United Nations or other development organi-

sations.

All ICD activities are carried out solely for the purpose

of assisting development, and not to promote commercial

interests of members or other enterprises.

- ICD is highly flexible in arranging the form of cooperative

activities - including those indicated above - depending

upon government needs.

Normally ICD will finance its participation in such activities.

Cost sharing with governments, UN or other organisations

involved, may be negotiated for certain expenses.

The composition of any mission, working group, etc. will, to

the extent feasible, be representative of the industry sector(s)

involved and will be acceptable to the appropriate government

authorities.

First Session

9.30 a.m., 26 February 1979


Chairman : Sir George Bishop

Agenda

Item

1. Opening statement by the Chairman,Preparatory Committee

2. Concept and legal structure of ICD

A. Draft prospectus

3. Organisation of ICD

A. Confirmation of members present

B. Review, amendment and approval ofby-laws

C. Nomination and election of Boardof Directors

D. Election of corporate officers

i) Chairman

ii) Vice-chairmen

iii) Treasurer

iv) Secretary

E. Confirmation of staff appointments

Document

Draft prospectus

Updated by-laws.Certificate ofincorporation

over

2.

Item

3. F. Board Committees (Executive andMembership Committees)

G. Sector coordinators

4. Work plan for 1979

A. Cooperation with governments? actionon priority countries

B. Agreements with UN system organisa-tions (UNDP, World Bank, FAO, Habitat,UN Capital Development Fund, otherorganisations)

C. Cooperation with non-UN organisations

D. The first project: USAID grant forcommercial seeds industry development

E. Membership development

i) Criteria for membership

ii) Action on companies to beinvited

5. Financial matters

A. 1979 budget

B. Membership dues

C. Other sources of finance for ICD

6. Other matters

Document

Proposed work plan

List of prioritycountries

Final draft agreementfor UNDP/ICDcooperation

USAID projectdescription

Annotated proposedbudget for 1979

7. Time and place of next meeting

Agenda Item 2. A.

DRAFT PROSPECTUS

of the



1. The development of productive capacity to eliminate povertyin-the world is a top priority task for mankind.

In supporting this task, the Council specifically under-takes that its activities will be carried out solely forthe purpose of encouraging economic and social developmentin developing countries, and not to promote the commercialinterests of its members.

2. Setting the priorities for development policies and object-ives is the responsibility of national and internationalpublic authorities.

3. In our interdependent world, the actual development processcannot take place without mobilizing a number of essentialresources, one of which consists of managerial and otherpractical capabilities acquired over years in creating andexpanding viable enterprises.

4. Therefore, the development process requires a continuousexchange of views between national and international publicauthorities responsible for development policies, and thosewith the managerial and other capabilities to create produc-tive capacity. This principle has been reconfirmed inresolutions of the UN General Assembly.

5. The character of the capabilities to create and manageproductive capacity is essentially similar, regardless ofthe economic system of a country or its stage of development.

6. Therefore, enterprises from all countries have the obligationto communicate and cooperate with government and internationalorganisations in furthering development.

7. The primary responsibility of company managements is to buildand run viable productive capacity through their enterprises.However, apart from this primary responsibility, managers andexperts from enterprises should be prepared to spend time andeffort on the dialogue with public authorities on developmentproblems.

2.

8. The Industry Council for Development has been created tostimulate the dialogue on practical development problemsbetween public authorities and enterprises. The Secretary-Gener_al of the United Nations has requested the Chairmanof the Council to establish these new arrangements so thatthe UN system can make use of industry expertise.

9. To this end, the Council organises country missions, expertworking groups and other forms of dialogue when invited todo so by governments directly or through the United Nationsor other international organisations, or on its owninitiative.

10. In these activities, the Council seeks to create under-standing by its membership of development objectives setby the United Nations and its member governments on the onehand; and, on the other, understanding by United Nationsorganisations and their member governments of industry'srole in facilitating the solution of practical developmentproblems.

11. The Council's members are companies from market and centrally-planned economies in developed and developing countries.Individuals can be invited to become members on the basisof their special knowledge and experience.

12. The Board of the Council is elected by the members.

13o The Council is an independent, non-profit organisation, self-financed primarily through an annual membership fee.

14. The headquarters of the Council are located in New York inthe vicinity of the UN Secretariat to facilitate the organi-sation of the work in cooperation with the UN system on thebasis of working agreements, as requested by the UnitedNations. The Council will set up offices in other locationsas its work may require.

Agenda Item 3.B.

REVISED BY-LAWS FOR ICD

Attached is the latest revision of the proposed by-laws forICD, incorporating several proposed changes which have arisensince the Chairman's letter of 15 December to prospectivemembers. The major changes in the text are indicated by anasterisk.

Following is an explanation of those changes.

1. ARTICLE THIRD. PART 1. QUALIFICATION FOR MEMBERSHIP

A sentence has been added providing a mechanism to screenapplications for membership.

2. PART 2. MEMBERSHIP MEETINGS

The first paragraph has been changed to give us much moreflexibility in establishing a date for the annual meeting.

In the final paragraph, the phrase "certified--by theSecretary of the Corporation" has been deleted, again togive us more flexibility, particularly at this first meeting,

3. ARTICLE FOURTH. PART 2. ELECTION AND TERM OF DIRECTORS

This paragraph has been rewritten to provide for staggeredterms for the initial Board of Directors so that roughlyone-third of the Board will from then on be elected each year.

4. PART 13. SECTOR COORDINATORS

This is an entirely new paragraph to allow us to continue theWorking Group/Task Force chairman-type function under ICD.This would have the advantage of increasing member participa-tion without increasing the size of the Board.

5. ARTICLE FIFTH. PART 1. OFFICERS, ELECTION, TERM

This paragraph has been changed to make possible election ofofficers by the membership rather than just their appointmentby the Board, as previously stated.

6. PART 2. REMOVAL, RESIGNATION, SALARY

The revised text necessarily follows PART 1.

Agenda Item 3.B./ B Y - L A W S

/OF

iINDUSTRY COUNCIL FOR DEVELOPMENT

ARTICLE FIRST

QFFICES






ARTICLE SECOND

PURPOSES

PURPOSES - The purposesfor which this corporation has been



ARTICLE THIRD

MEMBERSHIP

, PART 1. QUALIFICATION FOR MEMBERSHIP - Any person (defined as


related to the social economic or industrial development of developing

countries of the world qualifies to apply for membership. Applications

for membership shall be received and approved or disapproved by the

Board of Directors or Committee of the Board of Directors.

PART 2. MEMBERSHIP MEETINGS - The annual membership meeting

of the corporation shall be held on a date specified by the Board of

Directors, the first such annual meeting to be held within 12 months

of the initial meeting of the membership and each successive annual

meeting to be held within 15 months but not less than 8 months from

the date of the preceding annuairmeetxngo. The Secretary shall cause

to be mailed to every member in good standing at his address as it

appears on the membership roll book of the corporation a notice*

stating the time and place of the annual meeting.


by the membership from time to time.

The presence at any membership meeting of not less than three (3)


the business of the corporation; however, a lesser number may adjourn

the.meeting for a period of not more than two (2) weeks from the date




hereinbefore set forth shall be required at any adjourned meeting,

i .A membership roll showing the list of members as of the record

date shall be produced at any meeting of members upon the request therefor

of any member who has given written notice to the corporation that such

request will be made at least ten days prior to such meeting. All

persons appearing on such membership roll shall be entitled to vote at

the meeting„




they appear in the membership roll book at least ten days but not

more than fifty days before the scheduled date of such meeting. Such

notice shall state the dates time, place and purpose of the meeting and

by whom called.

No other business but that specified in the notice may be

transacted at such special meeting without the unanimous consent of

all present at such meeting.

PART 4. FIXING RECORD DATE - For the purpose of determining the


or any adjournment thereof, or to express consent to or dissent from

any proposal without a meeting, or. for the purpose of determining






any other action.

PART 5, ACTION BY MEMBERS WITHOUT A MEETING - Whenever members are


taken without a meeting by written consent, setting forth the action





Every proxy must be signed by the member or his attorney-in-fact,







1. Roll call





6. New business

7o Good and welfare

8. Adjournments

PART 8. 'MEMBERSHIP DUES - Shall be as annually determined at a

regular membership meeting based on a recommendation made by the

Board of Directors

ARTICLE FOURTH

DIRECTORS

PART 1.. MANAGEMENT OF THE CORPORATION - The corporation shall be

managed by the Board of Directors which shall" consist of not less


age.

PART 2. ELECTION AND TERM OF DIRECTORS - The term of directors

shall be staggeredlso that as nearly as possible one-third of the terms

expire each year. The initial meeting of members shall elect directors

for periods of one, two and three years; thereafter,"at each annual

meeting of members, the membership shall elect directors to hold office

for a three year period. Each director shall hold office until the


has been elected and shall have qualified, or until his prior resignation

or removal.


of directors may be increased or decresaed by vote of the members or



Any change in the number of directors shall be done so as to maintain

the staggered terms so as to result in as nearly as possible one-third

of the terms expiring each year.











of his predecessor.




members.

PART 6. RESIGNATION - A director may resign at any time by

giving written notice to the board, the chairman or the secretary






the certificate of incorporation, one-third of the entire board



PART 8. ACTION OF THE BOARD - Unless otherwise required by law,





its meetings at the- office of the corporation or at such other places,


determine.








called by the chairman upon three days' notice to each director





the meeting or who attends the meeting without protesting prior thereto

or at its commencment.





announced at the meeting, to the other directors.

PART 12. EXECUTIVE AND OTHER COMMITTEES- The board, by


from among .its members an executive committee and other committees,



PART 13. SECTOR COORDINATORS - Coordinators for major

industrial sectors represented in the corporation's activities will

be elected by the membership for a period of two years„ Such

Coordinators will be entitled to attend board meetings, will be

expected ,ta report at such meetings, but will not have voting rights

on the board.


of the Board of Directors or to express consent or dissent without



ARTICLE FIFTH

OFFICERS


for in the certificate of incorporation, the board or membership may

elect or appoint a chairman, one or more vice-chairmen, a secretary

and a treasurer, and such other officers as it may determine, who shall

have such duties, powers and functions as hereinafter provided.





PART 2. REMOVAL, RESIGNATION, SALARY - Any officer elected or

T appointed by the board or membership may be removed by the board with

or without cause. In the event of the death, resignation or removal

of an officer, the board in- its discretion may elect or appoint a


may be held by the same person, except the offices of chairman and

secretary. The salaries of all officers shall be fixed by the board.


of the corporation; he shall preside at all meetings of the members

and of the boardj he shall have the general management of the

affairs of the corporation and shall see that all orders and







1 j





representative shall, when authorized by the Board of Directors, sign

and execute all contracts in the name of the corporation, when




by the Board of Directors and shall be countersigned by the chairman

or his designate; he shall at all reasonable times exhibit his books

and accounts to any director or member of the corporation upon

application at the office of the corporation during ordinary

business hours. At the end of each corporate year, he shall have

an audit of the accounts of the corporation made by a committee

appointed by the chairman, and shall present such audit in writing

at the annual meeting of the members, at which time he shall also

present an annual report setting forth in full the financial conditions

of the corporation.




have the powers and.functions of the treasurer.


the Board of Directors, and also the minutes of the members. He



Board of Directors. He shall attend to the giving and serving of

all notices of the corporation,.and shall have charge of such books

and papers as the Board of Directors may direct; he shall attend to





and the time when they became members„


disability of the secretarys the assistant secretary, or if there


the board, shall have all the powers and functions of the secretary,

ARTICLE SIXTH

SEAL


ARTICLE SEVENTH

AMENDMENTS




the Board of Directors but any by-law adopted, amended or repealed

by the board may be amended by the members entitled to vote thereon






a concise statement of the changes made.

Agenda It em. 3-. B

BOOK , £ _ VOL

CERTIFICATE OF INCORPORATION 03117

OF .

INDUSTRY COUNCIL FOR DEVELOPMENT INC.

A Not-for-Profit Membership Corporation

We, the undersigned, in order to form a corporation for the

purposes hereinafter stated, under and pursuant to the provisions .o

of the General Corporation Law of the State of Delaware , do hereby

certify as follows:

FIRSTs The name of this Corporation is .

INDUSTRY COUNCIL FOR DEVELOPMENT ING. - ' ' ^ $I*

SECOND: Its Registered Office -in the State of Delaware

is to be located at .410 South State Street, "City of Dover/ County of

Kent. The Registered Agent in charge thereof is United Corporate

Services, Inc.

THIRD: The natiare of the business and the objects and

purposes to be transacted,, promoted and carried on, are to do any

or all the things herein mentioned, as fully and to the same extent

as natural persons might or could do, and in any part of the world, viz:

To encourage economic and social

development in developing countries

of the world by providing an educational

process through dialogue and cooperative

action between leaders of government,

industries, United Nations system and

other international organizations and

To engage in any lawful act or activity

for which corporations may be organized

BOOK ^> VOI to /_

• i- • 'under the General Corporation Law of' ' I l l ' a

Delaware .

FOURTH: The corporation shall not have any capital stock,

and the conditions of memebership shall be as stated in the Bylaws

of the corporation.

FIFTH: The names and places of residence of the

incorporators are as follows :

NAMEJ3 , RESIDENCES

Mr. W. W. Simons 239 Central Park WesrtNew York, New York

Mr. G. F. Landegger Via Am. Marzolo 42OstiaLido di Roma, Italy

SIXTH: The activities and affairs of the. corporation shall

be managed by a Board of Directors. The number of directors which

shall constitute the whole board shall be such as from time to time

shall be fixed by, or in the manner provided in, the Bylaws but in

no case shall the number be less than three. The directors need not

be members of the corporation unless so required by the Bylaws.

The board of directors shall -be- elected by the members at the annual

meeting of the corporation to be held on such date as the Bylaws

may provide, and shall hold office until their successors are

respectively elected and qualified. The Bylaws shall specify the

number of directors necessary to constitute a quorum.. The board

of directors may, by resolution or resolutions, passed by a majority

of the whole board, designate one or more committees, which to the

extent provided in said resolution or 'resolutions or in the Bylaws

of the corporation shall have and may exercise all the powers of the

board of directors in the management of the affairs of the corporation

and may have power to authorize the seal of the corporation to be affixed

to all papers which may require it; and such committee or committees

shall have such name or names as may be stated in the Bylaws of the

BOOKcorporation or as may be determined from time to time by resolution

adopted by the board of directors. The directors of the corporation

may if the Bylaws so provide, be classified as to term of office.. - &.

The corporation may elect such officers as the Bylaws may specify,

who shall, subject to the provision of the Statute, have such titles

and exercise such duties as the Bylaws may provide. The board of

directors is expressly authorized to make, alter or repeal the Bylaws•5

of this corporation.'"" '\-

The corporation may in its Bylaws, confer powers upon its board

of directors in addition to the foregoing, and in addition to the powers

and authorities expressly conferred upon them by the Statute, provided

that the board of directors shall not exercise any power of authority

conferred herein or by Statute upon the members .

SEVENTH: Meetings of members may be held without the State of

Delaware, if the Bylaws so provide. The books of the corporation may

be kept (subject to any provision contained in the Statutes) outside

the State of Delaware at such place or places as may be from time to

time designated by the board t»f -directors .

EIGHTH: The corporation reserves the right to amend, alter, change

or repeal any provision contained in this Certificate of Incorporation,

in the manner now or hereafter prescribed by the Statute, and all rights

conferred upon members herein are granted subject to this reservation.

NINTH: Notwithstanding any other provision in this certificate,

it is clear that this Corporation is formed exclusively for charitable

and educational purposes within the meaning of Section 501 (c) (3) of the

Internal Revenue Code? and it shall not engage, otherwise than as an

insubstantial part of its activities , in activities which in themselves

are not in furtherance of one or more of said purposes. No substantial

part of the activities of this Corporation shall be the carrying on of

BOOIC _ vnipropaganda, or otherwise attempting to influence legislation, and the

Corporation shall not participate in, or; intervene in any political .. . ' . . . , . . . .

campaign on behalf of .any candidate for public office by the publication

or distribution of statements or otherwise. The Corporation shall not

conduct or carry on any activities not permitted to be conducted or

carried on by an organization exempt under Section 501 (c) (3) of the

Internal Revenue Code and the Regulations thereunder or by an organizatic

the contributions to which are deductible under Section 170 (c) (2) of sut

Code and the Regulations thereunder. No part of the net earnings of this

Corporation shall inure to the benefit of any member, trustee, director

or officer of this Corporation; or to any private individual (except

the payment of reasonable compensation for services rendered to or for

the Corporation affecting one or more of its purposes) . The assets

accumulated by this Corporation shall be deemed trust funds irrevocably

dedicated to charitable and educational uprposes within the meaning of

Section 501 (c) (3) of the Internal Revenue Code, and should this

Corporation ever be dissolved no part of its assets shall be distributed•» * t

to any member, trustee, director or officer thereof, or any individual,

but all such assets shall be turned over and distributed to one or more

Corporations or organizations formed exclusively for charitable and

educational purposes or one or more of said purposes „ within the meaning

of Section 501(c) (3) of the Internal Revenue Code.

WE, THE UNDERSIGNED, being each of the incorporators hereinbefore

named, for the purpose of forming a corporation pursuant to Chapter 1

of Title 8 of The Delaware Code, do make this Certificate, hereby declarin

and certifying that the facts herein stated are true, and accordingly' • L-

have hereunto set our hands and seals this

of

.BOOK

, A.D.

PAGl 3&7

(SEAL)

(SEAL)

1 ri• i

BOCK- VOL.. PAGE.36?

DELOffice of SECRETARY OF STATE

J, Glenn C. Kenton

As a,

Certificate of Incorporation of the "INDUSTRY COUNCIL FOR DEVELOPMENT INC.", as

.received and filed in this office the third day of January, A.D. 1979, at 9 o'clock

A.M.

In Testimony Whereof, J

G£ CKs £&& (teaK G£

one?

RECEIVED FOR RECORD!

A?(^H^^J.M^^^

RECORDER (J

Glenn C. Kenton, Secretary of State

FORM 121 Assistant Secretary of State

AgendaItem 4. A

DEVELOPING COUNTRIES OF PRIORITY INTEREST

FOR ICD COOPERATION

The following preliminary list has been prepared according tocriteria indicated below. There are, of course, various otherdeveloping countries wherein specific development needs mayrepresent good opportunities for ICD cooperation.

1. Criteria for Selection

- Economic and food supply status. Since we will retain aconcentration on food and agriculture, this is an impor-tant criteria. Most of the countries on the list haveserious food supply problems.

- International food investment strategies. Where strat-egies exist (such as those being used by the World FoodCouncil), we have a good framework for analyzing thelocal food system and identifying opportunities for ICDinvolvement.

- UNDP Country Programme cycles. Those Country'Programmescoming up for review by the UNDP Governing Council in thenext year may offer opportunities for us to provide missioninputs into the planning process under our agreement withUNDP.

- Government policies toward cooperation with foreign industry.

- Other political considerations.

- Regional balance. We should try to keep a balance in ourfield work between the major developing country regions.

2. Priority Countries

A. Latin America

HONDURAS: MSA FPCNational food investment strategy prepared.Sympathetic government.

HAITI: LDC MSA FPC PFDCMost critical country in Latin America region.Target for most multilateral and bilateralprogrammes.LAAD and Agribusiness Council give high priority.

BOLIVIA: Another priority poor country in Latin Americaregion.

BRAZIL: North and northeast regions present importantdevelopment challenges.Previous ICP mission to Amazonia.

EL SALVADOR: MSA FPC

2.

B. Africa

UPPER VOLTA:

SENEGAL:

BENIN:

SOMALIA s

KENYA:

TANZANIA:

CHAD:

CAMEROON:

LESOTHO:

LDC MSA FPC PFDC

MSA FPCNational food investment strategy prepared.Previous ICP mission.

LDC MSA FPCPrevious ICP mission.UNDP Country Programme, June 1979.

LDC MSA FPC PFDCUNDP Country Programme, June 1980.

MSA FPCPrevious ICP contacts.Government sympathetic to foreign investment.

LDC MSA FPC PFDCPrevious ICP working party.Major political importance.New UNDP Country Programme, January 1979.

LDC MSA FPC PFDC

MSA FPCPrevious ICP mission.

LDC MSA FPCPrevious ICP technical assistance.Important small land-locked developing country.Sympathetic government.

Asia and the Pacific

PAKISTAN:

NEPAL:

BANGLADESH:

SRI LANKA:

MSA FPCPrevious ICP mission.

LDC MSA FPC PFDCUNDP Country Programme, June 1980.

MSA FPC PFDCNational food investment strategy prepared.

MSA FPC PFDCPrevious ICP mission.Change in government policies; more interestin foreign cooperation.UNDP Country Programme, June 1980.

3.

INDONESIA:

PHILIPPINES;

WESTERNSAMOA:

BURMA:

PAPUA NEWGUINEA:

D. Arab States

SUDAN:

EGYPT:

YEMEN ARABREPUBLIC:

MSA FPCNew UNDP Country Programme, January 1979,

FPCSympathetic government.

LDC MSAOnly country in Pacific region in theseabove categories.

World Bank interest.UNDP Country Programme, June 1979,.

UNDP Country Programme, June 1979

LDC MSA FPCNational food investment strategy prepared.Major interest in large-scale, as well astraditional agriculture.Sympathetic to private sector investment.UNDP Country Programme, June 1979.

MSA FPCSympathetic to foreign industry involvement.Previous approach to ICP for mission.Major political importance.

LDC MSA FPC PFDCOne of the few really poor Arab countries.UNDP Country Programme, June 1979.

Indicators

LDC: Least-Developed CountriesMSA: Most Seriously Affected CountriesFPC: Food Priority CountriesPFDC: Priority Food-Deficit Countries

Notes on the Indicators

1. Least-Developed Countries

The Committee for Development Planning of the Economic andSocial Council of the United Nations in 1971 classified 25countries as "Least Developed Countries". The classificationwas based on per caput gross domestic product of US$100 orless in 1968, share of manufacturing in gross domestic product

4.

of 10 percent or less, and 20 percent literacy or less inthe age group of 15 years or older around 1960.

2. Most Seriously Affected Countries

In 1974, the United Nations Emergency Operation was set upto help countries affected by the economic crisis resultingfrom the sudden rise in petroleum prices. Countries with aper caput income of less than US$400 in 1971 for which pro-jections showed the likelihood of an overall balance-of-payments deficit in 1974 equivalent to 5 percent or more ofimports were classified "Most Seriously Affected." Forty-five countries are now on this list.

3. Food Priority Countries

The World Food Council has classified 43 countries as "FoodPriority Countries." These countries meet at least three ofthe following five criteria:

- Per caput income below $500 (in 1975 prices). This levelis comparable to the figure of $400 (1971 prices) used toclassify countries as Most Seriously Affected, but some-what higher than the limit of $100 (1968 prices) for LeastDeveloped Countries.

- A projected cereal deficit by 1985 of 500,000 tons or more,or a cereals deficit of 20 percent or more of estimatedcereals consumption. This criterion encompasses bothcountries with large absolute food deficits and those withlarge relative food deficits.

- Undernutrition in terms of a high proportion of populationwhich is undernourished or in terms of a low average availa-bility of calories in relation to minimum requirements.

- Inadequate agricultural performance in terms of averageincrease in food production, total and per caput, during thethe last decade.

- Low potential for more rapid and efficient increase in foodproduction including few under-utilized resources forproducing food.

4. Priority Food-Deficit Countries

The Consultative Group on Food Production and Investment inDeveloping Countries designated 18 countries as "PriorityFood-Deficit Countries." The criteria were that the countryis likely to face, by 1985, a deficit of more than 1 million

tons of cereals just to maintain present inadaquate levelsof nutrition, or that its food deficit, although small inabsolute terms, poses a major problem at the national levelbecause current per caput dietary energy supplies are lessthan 95 percent of the country's nutritional requirements.

Agenda Item 4.B.

DRAFT VIII

UNITED NATIONS DEVELOPMENT PROGRAMME (UNDP)

AND

INDUSTRY COUNCIL FOR DEVELOPMENT (ICD)

Agreement setting out organisational relationshipsbetween the two organisations.

Signed at _^ on

AGREEMENT BETWEEN THE UNITED NATIONS DEVELOPMENTPROGRAMME AND THE INDUSTRY COUNCIL FOR DEVELOPMENT

WHEREAS both the United Nations development system and the

Industry Council for Development (hereinafter called the "Council")

are mutually concerned with assisting the developing countries in

achieving their economic and social development goals;

WHEREAS the United Nations development system renresents a

major and broadly-based mechanism to facilitate the flow of financial,

managerial, technological and other resources to develoning countries;

WHEREAS the United Nations Develooment Programme (UNDP) functions

as a major coordinating mechanism for the United Nations development

system;

WHEREAS resolutions of the UN General Assembly have emphasized

the importance of cooperation between the United Nations system and

2.

and industry, particularly for increasing and facilitating the

flow of resources for development;

WHEREAS the Secretary-General has welcomed new institutional

arrangements which permit the UN system to utilize industrv's

expertise and resources for the benefit of developing countries

upon their request;

NOW, THEREFORE, UNDP and the Council, have agreed as follows s

Article I

Principles of Cooperation

Section 1. The Council undertakes to make available to

interested developing countries a range of services, either directly

to the requesting government; through the facilities of the United

Nations development system, including UTTQP and other UN organisations;

or through other channels.

Section 2. The primary objective of the Council is to encourage

economic and social development, including fostering the transfer of

managerial and technological expertise to developing countries. In

so doing, the Council will act only in agreement with an interested

government and in full harmony with its national priorities. Where

appropriate, and when requested by the interested government, the

Council will utilize the UNDP country programme as a frame of

reference. The agreed services provided and activities undertaken

through the facilities of UNDP will be carried out in full accordance

with UNDP regulations and rules. They will be provided at the

expense of the Council, except as otherwise agreed. The Council

will ensure that none of its activities will give rise to any

financial liability on the part of UNDP without its consent.

Section 3. The major types of activity involving cooperative

efforts between the Council and UNDP are the following:

a) Country missions - These missions will be. organized and

implemented only upon the request of interested govern-

ments. When UNDP participation is desired by the host

government, UNDP will ordinarily, in-agreement with the

Council., take charge of organisational and supervisory

arrangements. Missions will ordinarily be composed of

a small number of industrialists from appropriate public

and private enterprises and, if requested by the host

governments, specially selected United Nations system staff.

If so requested by the host government, the missions will

examine government priorities and provide advice on how

to mobilize and focus industry resources to support

development plans and objectives.

b) Exchange of information - These exchanges will be organized

at the request of governments and/or UNDP. The Council

4.

will provide appropriate channels for exchanges of

information relevant to sectors and nrojects of priority

importance to development. These channels can be struc-

tured in accordance with the need and can include

government/industry consultations; sectoral or subject

matter working groups; seminars; workshops; symposia, etc.

Such forums will allow dialogue between representatives of

governments, concerned United Nations programmes and

organisations,, and industry leading to joint action for

the benefit of developing countries.

Also, where appropriate, the Council can orovide a

mechanism for industrialists to participate in meetings

at the request of UNDP.

c) Other activities - These activities may include specific

cooperation or advisory services in projects financed

either by UNDP or other sources acceptable to UNDP.

Section 4. Reports, recommendations or findings which the

Council may prepare with regard to activities carried out with UNDP

under this Agreement may not be published without the consent of

the government or governments concerned and UNDP.

Section 5. The Council specifically undertakes that its

activities will be carried out solely for the puroose of encouraging

5.

economic and social development in developing countries and not

to promote the commercial interests of members who t>articioate

in activities carried out under this Agreement.

Section 6. The administration of the Council shall be

carried out solely by the Council. UNDP will establish aporopriate

means to provide coordination for effective implementation of this

Agreement.

Article II

Details of Collaboration

Section 7. Consultations shall take place as required between

the Council and UNDP through their authorized representatives on

aspects of activities carried out under this Agreement.

•

Section 8. The Council's publications and other documents

will show in suitable form that the Council is operated as an

independent, self-funded organisation with no linkages to UNDP

other than those contained herein.

Section 9. Where applicable, the General Conditions required

by UNDP for activities carried out by subcontractors (see UNDP/Adm./

Hqtrs/210/Add.l of 22 October 1975) will apply to activities carried

out by the Institute under this Agreement, unless otherwise stipulated

by the parties.

6.

Article III

Entry into Force, Amendment and Duration

Section 10. This Agreement shall be signed by the Chairman

of the Council and the Administrator of UNDP and shall enter into

force on the date of signature.

Section 11. This Agreement is concluded for a period of five

years from date of signature; with a probationary period of one year

_*

Section 12. The Council and UNDP shall, at the request of

either of them, consult about amending this Agreement.

Section 13. The parties to this Agreement reserve the right

to terminate this Agreement at any time following the probationary

period on month(s) notice.

The United Nations Development The Industry CouncilProgramme for Development

Agenda Item 4.D.


(USAID-Funded)

The following project description is largely excerpted 'from theUSAID project documento

General


In developed countries, effective commercial seed enterprises arealmost universally present. Whether these are in the public or theprivate sector (good examples of both could be cited), they insurea reliable and economic supply of this important input to all farmers.In contrast, most developing countries do not have such effectivecommercial sources of seed. Governmental or other public sectorseed agencies typically are ineffective and inefficient in suchcountries. The result is that few farriers, even large-scale publicfarming enterprises, have access to reliable sources of good seed.




lack of adequate and consistent support for realistic seedenterprise operation. This often results from the absenceof clear recognition and conviction by government officialsof what needs to be done and what is required to do itsuccessfully;

lacking or insufficient institutional framework


2.

- lack of trained specialists and manpower. This is often themost serious constraint of all. The quality of any develop-ment programme is directly related to the.quality of thehuman resources involved. Initiation of adequate trainingprogrammes therefore is a fundamental requirement forsuccessful seed industry development;

lack of adequate and continuing financing also is a commonconstraint. This is often directly related to lack of recog-nition and support from governments, and particularly tofailure to recognize that the need for the seed input is acontinuing one which must be financed on a rational, self-sustaining basis.








This will necessitate contacts with all interested commercialseed firms, both private and public, in developed countries.Resources and cooperation of seed trade associations, such asthe International Seed Federation (FIS), InternationalAssociation of Plant Breeders (ASSINSEL), the American SeedTrade Association (ASTA) and others will be utilized to thefullest possible extent in making this survey. Also, closeliaison will be maintained with the Seed Industry DevelopmentProgramme (SIDP) of FAO, and with the AID-funded project atMississippi State University.

3.





Cooperation from developed country seed enterprises will besolicited initially from members of ICD, However, since manyleading seed firms and the smaller-scale seed enterprises donot presently belong to ICD, it will be necessary at an earlystage to invite participation by non-member firms.

4.


Training



Responses from interested commercial firms in developedcountries during project development, and previous experiencewith AID-sponsored training utilizing the facilities and coope-ration of U.S. seed firms indicates good opportunities forcooperation in arranging for adequate training programmesinvolving the assistance and facilities of commercial companies.It is estimated that 6 to 10 trainees per year can easily beaccommodated in available U.S. firm facilities alone. Firms inother developed countries also have indicated willingness andinterest in cooperating in the training programmes.

5.


The grant will be executed and implemented by the Industry Councilfor Development. The project director will be located in ICD head-quarters, New York City and will report directly to the ExecutiveDirector of ICD or to an official he may designate. ICD will enlistthe support of other agencies, i.e. FAO, UNDP, the World Bank, andother organisations of the U.N. system.


(USAID-Funded)

Expenditures over the life of project are estimated to be as follows

FY 79 FY 80 FY 81 FY 82

Item

Project Director(includes base +fringe)

Secretary

Overhead

Consultants

Travel

Training

Other Direct Costs

TOTAL E

12/1/78-11/30/79

46,000

12/1/79-11/30/80

48,000

12/1/80-11/30/81

52,000

12/1/81-11/30/82

57,000

14,000

8,250

25,000

20,000

-

14,700

15,000

8,850

15,000

15,000

108,000

14,700

15,500

9,600

15,000

15fOOO

123,000

15,200

16,000

10,500

10,000

10,000

113,000

10,700

127,950 224,550 245,300 227,200

ICD COOPERATION WITH DEVELOPING COUNTRY GOVERNMENTS

ICD's objective is to support economic and social advancement in

developing countries according to their national goals. It does

this by cooperating with government authorities in making industry

expertise - particularly managerial, technical, scientific, and

distribution know-how - available on a completely impartial basis

to assist priority development activities. ICD acts only upon

government request. These requests may be made directly to ICD

or channeled through the United Nations system or other development

organisations.

Council members are commercial enterprises in all parts of the

world and from all economic systems. They are represented in ICD

by senior executives. Such representatives accept an obligation,

beyond their duty as industrial managers, to spend time and efforty

and to share their knowledge in a dialogue on development problems

with national and international public authorities responsible for

establishing development policies and objectives. Individual autho-

rities outside industry may also become ICD members under the same

stipulation.

The Council provides a channel for dialogue between leaders of

government, industry and the UN system to facilitate cooperative

action.

ICD is fully self-financed through membership fees and project

funds from bilateral agencies, foundations and other development

organisations.

2.

ICD services available to government include:

Overall Development Planning

Missions of senior industrialists will be made available as

impartial experts to counsel and assist developing country autho-

rities in preparing and evaluating national development plans, or

country programmes administered by UN system, bilateral and other

development organisations.

Sector Analyses

High-level executive/expert missions and task forces can be orga-.*

nized to assist government planners in their analysis and evaluation

of sector problems, the performance of priority programmes, options

for new activities and the viability of proposed projects.

The nucleus for such working groups and task forces already exists

in such agro-industrial sectors as dairy, meat production, nutrition,

forestry, farm mechanisation and animal health, and others can be

organized depending upon government request.

Technology Transfer

Working groups and task forces as well as workshops and individual

expert visits can be organized by ICD to assist government and UN

system officials on technology development, including transfer

from external resources and the generation or adaptation of tech-

nology to meet local requirements.

Investment and Other Forms of Industrial Cooperation

ICD can assist governments which wish to attract foreign industrial

cooperation in priority development projects. This may include

recommendations for new approaches in partnership formulas or

ways to improve incentives for attracting foreign industrial

cooperation,

For selected priority projects ICD may act as an impartial broker

to help evaluate project viability and to assist implementation

by bringing together managerial, technologicalf financial and

local partner resources.

Human Resources Development*

ICD will help governments plan and evaluate programmes and acti-

vities to meet training and management development needs for

development priorities. Through sector working groups and training

task forces, industry expertise can be focused on organisation and

implementation of specific programmes. ICD assistance is also

possible in providing information for the technical content of

training programmes, particularly in basic job skill areas.

ICD can seek industry's cooperation in making company training

facilities and training experts available for specific government

priority requirements.

Information Exchange

Seminars, workshops and briefings can be organized for developing

country government officials on specific technical or economic

subjects, particularly those in which industry know-how and

operating expertise is a significant factor.

4.

Publications such as manuals, technical papers and conference

proceedings, as well as audio-visual and other communications

projects may be supported by ICD in subjects of major importance

to development.

ICD's Operating Principles Are;

ICD acts only upon government request, either directly to

ICD or through United Nations or other development organi-

sations.

- All ICD activities are carried out solely for the purpose

of assisting development, and not to promote commercial

interests of members or other enterprises.

ICD is highly flexible in arranging the form of cooperative

activities - including those indicated above - depending

upon government needs.

- Normally ICD will finance its participation in such activities.

Cost sharing with governments, UN or other organisations

involved, may be negotiated for certain expenses.

- The composition of any mission, working group, etc. will, to

the extent feasible, be representative of the industry sector(s)

involved and will be acceptable to the appropriate government

authorities.

Agenda Item 5.A.

1 9 7 9 B U D G E T

BUDGET SUMMARY

The ICD budget for 1979 is projected on the assumption thata nucleus staff of four employees would provide the basicdirection, administration and clerical services for programmeactivities. To this nucleus would be added project personnel(as with the seeds industry project) funded separately; andpossible secondments from member companies for specificperiods of time. It is assumed that staff members in thelatter category would be fully funded by their sponsors.In addition, we have budgeted for consultants to assistspecific programme activities. ICD would have to providespace and supporting services for secondments, consultantsand project staff, However, with employees in the lattercategory, some overhead and other charges can be made againstproject funds.

This approach would allow the maximum flexibility in staffingfor fast results, while also allowing us to seek and considerindividuals for permanent professional employment dependingupon the volume and direction of ICD business.

The following summary is supported by several annexes containinga further breakdown of individual cost items.

I Nucleus ICD Staff

Personnel . . . . . . . . . $ 95,420

Employee Benefits • „ 26,285

Operational . . . . . . . . 51,190

One-Time Costs . . . . . . . 9,485

Travel & Hospitality . . . . . 28,000 $210,380

II Consultants

Fees . . . . . . . $25,000 - 40,000

Travel, Supporting Services,Benefits, etc. 25,000 $ 65,000

2.

Ill Project Activities

Staff and supporting activities would be fullycovered by project funds. Some overhead andother nucleus staff costs may be charged toprojects.

IV Seconded Staff

Costs 'for personnel and employee benefits wouldbe covered by sponsoring company.

Estimated secretarial and other supportingservices . . . . «. . . „ . . , . $25,000

V Miscellaneous

Possible additional operational, employeebenefits and one-time costs for categoriesII, III and IV above, approximately . . . $15,000

TOTAL: $315,380

A J

AR/JEB

b/f:RA/FMGCONFIDENTIAL File:ICD

NOTE FOR THE SECRETARY-GENERAL


You will remember that you regretted an invitation

by Sir George Bishop for lunch on 26 February and that you

were subsequently invited to an ICD-reception in the late

afternoon of that day. As instructed by you, I discussed

the matter with Walter Simons who then talked to Sir George

on the phone. They have full understanding for your position

and Sir George wonders whether he could come to see you for

a short meeting on 26 February. This should present no

problem for you and would help Sir George vis-a-vis his

own people. Would 6 p.m. be all right?

A. Rohan16 Febru

V-''

' jin-'-"""""'"

« AR/JEB

b/f: RA/FMGFile: ICD

Note for the Secretary-General


Arthur Brown asked me to inform you of the following:

Brad Morse feels that, in view of the Swedish objections,

he cannot go ahead with the signing of the proposed agreement:•». u^f • •- •»••• '"" ' " '

with ICD. He now intends to take the matter to the UNDP

Governing Council for a decision.

The UK mission has told Mr. Brown that they intend to

hold a meeting with the Netherlands and other countries in

favour of ICD in order to work out the strategy in dealing

with the Swedish position. They will discuss the possibility

of undertaking a collective demarche in Stockholm.

A. Rohan13 February 1979

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5 February 1979

Bear Mr, Sisnons,

3*hank you for your letter of 31 January 1979in connexion with -the first session of the IndustryCouncil for Development on. 26 February.

I very much appreciate your thoughtfulnees insending me th© background material concerning thismeeting and accept with pleasure the kind invitationto join you for a luncheon on this occasion.

With kind regards.

Yours sincerely.

albert RohanDirector

Mr* Walter W. SiioonsExecutive DirectorIndustry Council for DevelopmentIslew



Room 3802AUnited NationsNew York, N.Y. 10017

31 January 1979

Dear Mr. Rohan:

The first session of the Industry Council for Developmentwill be held in New York on 26 February. For your possibleinterest, I attach a copy of our agenda and the letter wehave just sent to potential members. The response so farfrom industry is encouraging and we expect that the nucleusof the former TCP membership will support our new organisation.

We also hope to have a short, informal ceremony at the end ofour meeting so that Mr. Morse and Sir George Bishop can signthe UNDP/ICD draft agreement (copy of final draft attached).

Before leaving for Africa, Sir George asked me to extend toyou his invitation to join us at lunch on the 26th. He hasalso invited the Secretary-General, Mr. Morse, Mr. Brown andseveral UN delegation representatives.

We are grateful for the support you have given to our effortsover the past year and hope you can join us on the 26th tomark the inauguration of our new institutional arrangements.

Please let me know if I can provide any further information.

Yours sincerely,

Walter^W. SimonsExecutive Director

cc: G.S. Bishop




26 January 1979

In accordance with Sir George Bishop's cabled invitation,I am pleased to send you the attached agenda for the firstsession of the Industry Council for Development (ICD).

We will meet from 9,30 a.m. to 5 p.m. in the ConferenceRoom on the third floor of 821 UN Plaza (the Turkish Centre)fwhich is located at the corner of 46th Street and FirstAvenue.

You are also invited to a luncheon at UN headquarters in aprivate dining room from 1 p.m. to 2.30 p.m. As specialguests, we have invited the Secretary-General of the UnitedNations, the Administrator of UNDP and other senior UNofficials, as well as representatives of several nationaldelegations to the United Nations, all of whom have stronglysupported the establishment of ICD.

There are several objectives for this meeting. First, weneed to complete the legalities for fully establishing ICD(Item 3) .

Secondly, we want to gain your views.and support for a workplan and budget that will produce tangible results quicklyin support of developing country priorities for economic andsocial advancement.

We have been able to get a fast start on the New Year* On3 January, ICD was formally incorporated and opened its head-quarters office in New York. The final draft of an agreementwith UNDP is ready for signature and discussions for coopera-tive arrangements with other UN system organisations are welladvanced. Also, the USAID grant to ICD for a commercial seedsindustry development project is now ready for implementation.Several other possible cooperative projects with UN and non-UNdevelopment organisations are being explored as action itemsfor our first work plan. These will be detailed in documents


TELEPHONE: (212)867-5017 CABLE: INDUSCODEV TELEX: 23 8976

2.

for the meeting, especially an annotated work plan andbudget proposals.

Thus, we now have a new and politically viable institutionto carry on the tradition - pioneered by ICP - of involvingindustry's leadership and expertise in the developmentprocess. We hope that you will attend this meeting preparedto commit your Company to membership in ICD. Voting on Item3 will necessarily be restricted to those participants whoare in a position to commit their companies, either defini-tely or on an interim basis.

Please confirm your participation as soon as possible andlet us know where you will be staying in the New York area.In this regard, please note our new and correct telephonercable and telex addresses.

The Chairman looks forward to welcoming you at the firstmeeting of ICD.

Sincerely yours,



First Session

9.30 a.m., 26 February 1979


Chairman : Sir George Bishop

Agenda

Item

1. Opening statement by the Chairman,Preparatory Committee

2. Concept and legal structure of ICD

A. Draft prospectus

3. Organisation of ICD

A. Confirmation of members present

B. Review, amendment and approval ofby-laws

C. Nomination and election of Boardof Directors

D. Election of corporate officers

i) Chairman

ii) Vice-chairmen

iii) Treasurer

iv) Secretary

E. Confirmation of staff appointments

Document

Draft prospectus

Updated by-laws.Certificate ofincorporation

over



2.

Item

3.

Document

F. Board Committees (Executive andMembership Committees)

G. Sector coordinators

Work plan for 1979

A. Cooperation with governments: actionon priority countries

B. Agreements with UN system organisa-tions (UNDP, World Bank, FAO, Habitat,UN Capital Development Fundy otherorganisations)

C. Cooperation with non-UN organisations

D. The first projects USAID grant forcommercial seeds industry development

E. Membership development

i) Criteria for membership

ii) Action on companies to beinvited

Financial matters

A. 1979 budget

B. Membership dues

C. Other sources of finance for ICD

Other matters

proposed work plan

List of prioritycountries

Final draft agreementfor UNDP/ICDcooperation

USAID projectdescription

Annotated proposedbudget for 1979

7. Time and place of next meeting

DRAFT VIII


AND


Agreement setting out organisational relationshipsbetween the two organisations.

Signed at on



Industry Council for Development (hereinafter called, the "Council")



WHEREAS the United Nations development system represents a


managerial, technological and other resources to developing countries;

WHEREAS the United Nations Development Programme (UNDP) functions


system;


the importance of cooDeration between the United Nations system and

2.




arrangements which permit the UN system to utilize industry's


upon their request;

NOW, THEREFORE, UNDP and the Council have agreed as follows:

Article I




to the requesting government; through the facilities of the United

Nations development system, including UNDP and other UN organisations;







appropriate, and when requested by the interested government, the


3.





will ensure that none of its activities will give rise to anv




a) Country missions - These missions will be organized and


ments. When UNDP participation is desired bv the host

government, UNDP will ordinarilv, in agreement with the

Council, take charge of organisational and supervisory





If so requested bv the host government, the missions will




b) Exchange of information - These exchanges will be organized,


will provide appropriate channels for exchanges of

information relevant to sectors and projects of priority



government/industrv consultations; sectoral or subject




organisations, and industry leading to joint action for


Also, where appropriate, the Council can provide a







Council may prepare xtfith regard to activities carried out with UNDP




activities will be carried out solely for the purpose of encouraging

5.

economic and social develooment in developing countries and not

to promote the commercial interests of members who participate



carried out solely by the Council. UNDP will establish appropriate


Agreement.

Article II













by the parties.

6.

Article III





Section 11. This Agreement is concluded for a period of five

years from date of signature; v?ith a probationary period of one year.







INDUSTRY COUNCIL FOR DEVELOPMENT (Km)

Establishment of Headquarters

Headquarters for the Industry Council for Development (ICD)have been established at:

821 United Nations PlazaNew York, N.Y. 10017

Tel: (212) 687-5017,5018,0877,3745

You will be advised as soon as we have a telex number andcable address.

These offices will be located on the 7th floor and will openon 3 January, 1979. Legal proceedings to incorporate ICD arenow in process and we expect the Council will be fully opera-tional by mid-January.

Please direct all communications regarding ICD and ICP to theabove address.

Walter W. SimonsExecutive Director (Designate)ICD

UNITED NATI8NS tfjj*\ PROGRAMME DES NATIONS UNIES

DEVELOPMENT P R O G R A M M E |§P POUR LE D j V E L O P P E M E N T

MTWS HKt

New York

Mr. Albert Rohan

With the compliment!

of the

United Nations Development Programme

Walter W. Simons

The attached package of materials is now being mailed tothe ICP msiribership as a first step in launching the newIndustry Council for Development. '

Our founders' meeting would probably be in the secondhalf of February. Sir George will want to invite theSecretary-General to participate in some aspect of themeeting. I understand that in the latter half of Februarythere is a better chance that he will be in New York.

From the Chairman

McCONNELLLIMITED

Temporary address:99 BishopsgateLondon EC2M 3XD

Bucklersbury House (Reg. Off.)83 Cannon Street, London EC4N 8EJ

15 December 1978 Telephone: 01-2488051Telex: 888169Cables: Considerer London EC4

CRO (London) Reg. No; 65519

Dear Member

Following my letter of 6 November, I can now inform youof the conclusions of the Policy Working Group which we appointedon 24 October to establish a new institution to carry on theconcept of ICP.

These conclusions are set out in the following attacheddocuments:

1. The draft prospectus states the basic principles andobjectives of the new institute to be created under thename - Industry Council for Development (ICD). Infrench this becomes - Conseil de Co-operationIndustrielle pour le Developpement.

2. Draft bye-laws of ICD. It may be necessary to makesome minor changes, but substantially this is the textthat will be used to incorporate ICD in the USA.

3. A draft working agreement with UNDP which they findacceptable.

4. Priorities for the 1979 work programme.

I am also sending you a copy of a letter to me from theSecretary-General of the United Nations (dated 17 November 1978)which is further proof of his continuing support for our initiative

Following the decision of the Executive Committee (whichbecame the Preparatory Committee for ICD) in London on 24 October,I have authorised the establishment of the new Council by the endof this year, if possible.

2.

It will be possible to call a meeting of founding membersof ICD in New York in February 1979; I will let you know thedate and other details as soon as possible.

ICD headquarters will be established under the directionof Mr. Walter Simons, assisted by Mrs. de Casterle, and locatedin New York for the first year, after which a decision will betaken on a permanent location for the headquarters. The officewill open on 1 January in the Turkish Centre at 821 U.N. Plaza,New York; you will be informed of the full address and telephonenumbers as soon as possible.

As you can see from the proposed work programme, we havegiven a high priority to initiating working relationships withgovernments that are prepared and wish to seek our expertiseon their development problems. Some of the working groups thatfunctioned as part of ICP have indicated their interest inresuming operations; and if other UN bodies feel the need forthis form of cooperation, we would invite members who arepotentially interested to assist in the formation of new workinggroups.

I believe that we are now making positive progress and thatthis new organisation will serve its purpose in the year ahead.I hope, therefore, that you will be able to join us in Februaryat the initial ICD meeting.

DRAFT PROSPECTUS

of the



1. The develoDment of productive capacity to eliminate poverty

in the world is a top priority task for mankind.

In supporting this task, the Council specifically undertakes

that its activities will be carried out solely for the pur-

pose of encouraging economic and social development in

developing countries, and not to promote the commercial

interests of members.

2. Setting the priorities for development policies and

objectives is the responsibility of national and international

public authorities.

3. In our interdependent world, the actual development process

cannot take place without mobilizing a number of essential

resources, one of which consists of managerial and other

practial capabilities acquired over years in creating and

expanding viable enterprises.

4. Therefore, the develooment process requires a continuous

exchange of views between national and international public

authorities responsible for development policies, and those

2.

with the managerial and other capabilities to create

productive capacity. This principle has been reconfirmed

in resolutions of the UN General Assembly.

5. The character of the capabilities to create and manage

productive capacity is essentially similar, regardless of

the economic system of a country or its stage of development

6. Therefore, enterprises from all countries have the obliga-

tion to communicate and cooperate with government and

international organisations in furthering development.

7. The primary responsibility of company managements is to

build and run viable productive capacity through their

enterprises. However, apart from this primary responsi-

bility, managers and experts from enterprises should be

prepared to spend time and effort on the dialogue with

public authorities on development problems.

8. The Industry Council for Development has been created to

stimulate the dialogue on practical development problems

between public authorities and enterprises. The Secretary-

General of the United Nations has requested the Chairman

of the Council to establish these new arrangements so

that the UN system can make use of industry expertise.

3.

9. To this end, the Council organises country missions, expert

working groups and other forms of dialogue when invited to

do so by governments directly or through the United Nations

or other international organisations, or on its own

initiative.

10. In these activities, the Council seeks to create understanding

by its membership of development objectives set by the

United Nations and its member governments on the one hand;

and, on the other, understanding by United Nations organisa-

tions and their member governments of industry's role in

facilitating the solution of practical development problems.

11. The Council's members are companies from market and centrally-

planned economies in developed and developing countries.

Individuals can be invited to become members on the basis

of their special knowledge and experience.

12. The Board of the Council is elected by the members.

13. The Council is an independent, non-profit organisation,

self-financed primarily through an annual membership fee.

14. The headquarters of the Council are located in New York in

the vicinity of the UN Secretariat to facilitate the organisa-

tion of the work in cooperation with the UN system on the basis

of working agreements, as requested by the United Nations. The

Council will set up offices in other locations as its work may

require.

DRAFT VIII


AND


Agreement setting out organisational relationshiosbetween the two organisations.

Signed at on



Industry Council for Development (hereinafter called the "Council")



WHEREAS the United Nations development system represents a


managerial, technological and other resources to developing countries;

WHEREAS the United Nations Development Programme (UNDP) functions


system;


the importance of cooperation between the United Nations system and

2.




arrangements which permit the UN system to utilize industry's


upon their request;

NOW, THEREFORE, UNDP and the Council have agreed as follows:

Article I




to the requesting government; through the facilities of the United.

Nations development system, including UNDP and other UN organisations;







appropriate, and when requested bv the interested government, the


3.





will ensure that none of its activities will give rise to any




a) Country missions - These missions will be organized and


ments. When UNDP participation is desired bv the host

government, UNDP will ordinarilv, in agreement with the

Council, take charge of organisational and supervisory





If so requested bv the host government, the missions will




b) Exchange of information - These exchanges will be organized


will provide appropriate channels for exchanpes of

information relevant to sectors and projects of priority



government/industry consultations; sectoral or subject




organisations, and industry leading to "joint action for


Also, where appropriate, the Council can provide a







Council may prepare with regard to activities carried out with UNDP




activities will be carried out solely for the purpose of encouraging

5.

economic and social develooment in developing countries and not

to promote the commercial interests of members who participate



carried out solely by the Council. UNDP will establish appropriate


Agreement.

Article II













by the parties.

6.

Article III





Section 11. This Agreement is concluded for a Deriod of five

years from date of signature; with a probationary period of one year,








Proposed Work Programme for 1979

The following priorities are recommended for ICD's initial workplan:

1. Establish the Council as a legal and operational entity.

2. Consolidate interested ex-ICP members as the nucleusmembership.

3. Conclude working agreements with key UN system organisations,including UNDP, the World Bank Group, FAO, UNIDO, ILO,UNCTAD and GATT,

Establish working relations with selected developing countrygovernments and non-UN development organisations.

4. Expand and upgrade membership, including developing countryindustries and prominent persons from developed anddeveloping countries who have knowledge and expertise relatedto ICD's objectives.

5. Where feasible, continue certain priority activities such asWorking Groups on Mechanization, Dairy and Meat Industries,Animal Health Industries, Food Loss Prevention, Plastics, etc,

6. Implement the Seeds Industry Promotion project for whichfinance is available from US bilateral sources.

7. Explore, plan and implement new activities, as feasible.

THE StCRL1ARY-GENERAL

17 November 1978

Dear Sir George,

Thank you for your letter of 3 November 1978

informing me of the outcome of the 50th session of

the ICP Executive Committee.

I was pleased to learn that it had been agreed

to proceed with the new institutional arrangements

which we had discussed previously. As you know, the

United Nations attaches a high value to the

contribution that industry can make in the development

process and I hope that this new concept will provide

a basis for satisfactory co-operation in the future.

I would like to take this opportunity to express

my sincere thanks for the kind words which you have

addressed to me.

With best regards.

Yours sincerely,

Kurt Waldheim

Sir George BishopChairmanBooker McConnellLondon

B Y - L A W S

OF


ARTICLE FIRST

OFFICES






ARTICLE SECOND

PURPOSES

PURPOSES - The purpose for which this corporation has been



ARTICLE THIRD

MEMBERSHIP

PART 1. QUALIFICATION FOR MEMBERSHIP - Any person (defined as


related to the social, economic or industrial development of developing

countries of the world.

PART 2. MEMBERSHIP MEETINGS - The annual membership meeting of

the corporation shall be held on the 15th day of May of each year,

except that if such day be a legal holiday then in that event the

directors shall fix a day not more than four weeks from the date

fixed by these by-laws. The Secretary shall cause to be mailed to

every member in good standing at his address as it appears on the

membership roll book of the corporation a notice stating the time

and place of the annual meeting.


by the membership from time to time.

The presence at any membership meeting of not less than three (3)


the business of the cort>oration; however, a lesser number may adjourn

the meeting for a period of not more than two (2) weeks from the date




hereinbefore set forth shall be required at any adjourned meeting.

A membership roll showing the list of members as of the record

date, certified by the Secretary of the corporation, shall be produced

at any meeting of members upon the request therefor of any member who

has given written notice to the corporation that such request will be

made at least ten days prior to such meeting. All persons appearing

on such membership roll shall be entitled to vote at the meeting.




they appear in the membership roll book at least ten davs but not

more than fifty days before the scheduled date of such meeting.

Such notice shall state the date, time, place and purpose of the

meeting and by whom called.

No other business but that specified in the notice may be trans-

acted at such special meeting without the unanimous consent of all

present at such meeting.

PART 4. FIXING RECORD DATE - For the purpose of determining the


or any adjournment therof, or to express consent to or dissent from

any proposal without a meeting, or for the purpose of determining






any other action.

PART 5. ACTION BY MEMBERS WITH A MEETING - Whenever members are


taken without a meeting by written consent, setting forth the action





Every proxy must be signed by the member or his attorney-in-fact.







1. Roll call





6. New business

7. Good and welfare

8. Adjournments

PART 8. MEMBERSHIP DUES - Shall be as annually determined at a

regular membership meeting based on a recommendation made by the

board of directors.

ARTICLE FOURTH

DIRECTORS

PART 1. MANAGEMENT OF THE CORPORATION - The corporation shall be

managed by the board of directors which shall consist of not less


age.

PART 2. ELECTION AND TERM OF DIRECTORS - At each annual meeting

of members, the membership shall elect directors to hold office for

a three year period. Each director shall hold office until the


has been elected and shall have qualified, or until his Drior

resignation or removal.


of directors may be increased or decreased by vote of the members or













of his predecessor.




members.

PART 6. RESIGNATION - A director may resign at any time by

giving written notice to the board, the chairman or the secretary






the certificate of incorporation, one third of the entire board



PART 8. ACTION OF THE BOARD - Unless otherwise required by law,





its meetings at the office of the corporation or at such other places,


determine.








called by the chairman upon three days' notice to each director





the meeting or who attends the meeting without nrotesting prior thereto

or at its commencement.





announced at the meeting, to the other directors.

PART 12. EXECUTIVE AND OTHER COMMITTEES - The board, by


from among its members an executive committee and other committees,




of the board of directors or to express consent or dissent without



ARTICLE FIFTH

OFFICERS


for in the certificate of incorporation, the board may elect or

appoint a chairman, one or more vice-chairmen, a secretary and a

treasurer, and such other officers as it may determine, who shall

have such duties, powers and functions as hereinafter provided.





PART 2. REMOVAL, RESIGNATION, SALARY - Any officer elected or

appointed by the board may be removed by the board with or without

cause. In the event of the death, resignation or removal of an

officer, the board in its discretion may elect or appoint a


may be held by the same person, except the offices of chairman

and secretary. The salaries of all officers shall be fixed by

the board.


of the corporation; he shall preside at all meetings of the members

and of the board; he shall have the general management of the

affairs of the corporation and shall see that all orders and











representative shall, when authorized by the board of directors, sign

and executive all contracts in the name of the corporation, when




by the board of directors and shall be countersigned by the

chairman or his designate; he shall at all reasonable times

exhibit his books and accounts to any director or member of the

corporation upon application at the office of the corporation

during ordinary business hours. At the end of each cornorate year,

he shall have an audit of the accounts of the corporation made by

a committee appointed by the chairman , and shall present such

audit in writing at the annual meeting of the members, at which

time he shall also present an annual report setting forth in full

the financial conditions of the corporation.




have the powers and functions of the treasurer.


the board of directors and also the minutes of the members. He



board of directors. He shall attend to the giving and serving of

all notices of the corporation, and shall have charge of such books

and papers as the board of directors may direct; he shall attend to





and the time when they became members.


disability of the secretary, the assistant secretary, or if there


the board, shall have all the powers and functions of the secretary.

ARTICLE SIXTH

SEAL


ARTICLE SEVENTH

AMENDMENTS




the board of directors but any by-law adopted, amended or repealed

by the board may be amended by the members entitled to vote thereon






a concise statement of the changes made.

C E R T I F I C A T E

0 F

I N C O R P O R A T I O N

0 F

I N D U S T R Y C O U N C I L F O R D E V E L O P M E N T

A Not-for-Profit Membership Corporation

FIRST: The name of this Corporation is

SECOND: Its Registered Office in the State of Delaware is to be

located at , in the

County of . The Registered Agent in

charge thereof is

THIRD: The nature of the business and the objects and purposes to

be transacted, promoted and carried on, are to do any or all the

things herein mentioned, as fully and to the same extent as natural

persons might or could do, and in any part of the world, viz: insert

FOURTH: The corporation shall not have any capital stock, and the

conditions of membership shall be as stated in the By-Laws of the

corporation.

FIFTH: The names and places of residence of the incorporators are

as follows:

NAMES RESIDENCES

Mr. W.W. Simons

Mr. G.F. Landegger

SIXTH: The activities and affairs of the corporation shall be

managed by a Board of Directors. The number of directors which

shall constitute the whole board shall be such as from time to

time shall be fixed by, or in the manner provided in, the By-Laws,

but in no case shall the number be less than three. The directors

need not be members of the corporation unless so required by the

By-Laws. The board of directors shall be elected by the members

at the annual meeting of the corporation to be held on such date as

the By-Laws may provide, and shall hold office until their successors

are respectively elected and qualified. The By-Laws shall specify

the number of directors necessary to constitute a quorum. The board

of directors may, by resolution or resolutions, passed by a majority

of the whole board, designate one or more committees, which to the

extent provided in said resolution or resolutions or in the By-Laws

of the corporation shall have and may exercise all the powers of the

board of directors in the management of the activities and affairs

of the corporation and may have power to authorize the seal of the

corporation to be affixed to all papers which may require it; and

such committee or committees shall have such name or names as may

be stated in the By-Laws of the corporation or as may be determined

from time to time by resolution adopted by the board of directors.

The directors of the corporation may, if the By-Laws so provide, be

classified as to term of office. The corporation may elect such

officers as the By-Laws may specify, who shall, subject to the

provision of the Statute, have such titles and exercise such duties

as the By-Laws may provide. The board of directors is expressly

authorized to make, alter or repeal the By-Laws of this corporation.

The corporation may in its By-Laws, confer powers upon its

board of directors in addition to the foregoing, and in addition

to the powers and authorities expressly conferred upon them by

the Statute, provided that the board of directors shall not

exercise any power of authority conferred herein or by Statute

upon the members.

SEVENTH: Meetings of members may be held without the State of

Delaware, if the By-Laws so provide. The books of the corporation

may be kept (subject to any provision contained in the Statute(s)

outside the State of Delaware at such place or places as may be

from time to time designated by the board of directors.

EIGHT: The corporation reserves the right to amend, alter, change

or repeal any provision contained in this Certificate of Incorporation,

in the manner now or hereafter prescribed by the Statute, and all

rights conferred upon members herein are granted subject to this

reservation.

WE, THE UNDERSIGNED, being each of the incorporators hereinbefore

named, for the purpose of forming a corporation pursuant to Chapter 1

of Title 8 of The Delaware Code, do make this Certificate, hereby

declaring and certifying that the facts herein stated are true, and

accordingly have hereunto set our hands and seals this

day of , AoD. 19 .

(SEAL)

(SEAL)

(SEAL)

INSERT

The purpose of the corporation is to encourage economic

and social development in developing countries of the world

by providing an educational process through dialogue and

cooperative action between leaders of government, industries,

United Nations system and other international organisations.

FOR PREVIOUS CORRESPONDENCE ON THIS MATTER PLEASE

SEE RETIRED FILE ON INDUSTRY CO-OPERATIVE PROGRAMME (ICP)

in top drawer of Cabinet No.6.

Documents

With the compliments of - United Nations€¦ · industry's advice on certain aspects of farm mechanization for rice production. 3. Proposals for Future Cooperation (a) Mr. Kniep