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COMMISSIO.N
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THE
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COMFTU}qTTES
sEc(?4) I5o0
final.
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1974nr\
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_qERHtS UNIT
CHARTER OF ECONOMIC RIGHTS A]{D DUTIES OF STA.TES
Preparation
for
the
fourth
sessionof
the
WCTnD-WorkingGroup
Position
of
the
Conmun:i.ty and.the
Mernbcr States'I
I
i
CHARJIrFN C}F ECONOlfiC RIGHfS ANl) DUTIES OF STATFSPreparation
for
the fourth
sessionof
the
UNCTID Working GroupPosition
of
the
Cinmunity a"rndthe
l{ember States.INTRODUCTION
1. In
MayI972t
at its
third.
session, held
in
$antiago, the
Uniterl lTaJionsConference on Trade and Development (fnVCfm) ad.opted. Resol.ution
a5
(fff)
relating to'the
elaboration
of
the
ttCharterof
EeonomicRlghts
and. Dutiesof
Statesrt.
The Resolution noted.the
ur6encyfrin
the international
eommunityto
establish
general-ly accepted" normsto
goverrrinternational
economicrelations
systematieallyrr.
The Besolutionalso
indicated.that ttit
is
not feasible
to
establish
a
just
ord.er and.a stable
world
aslong
as theCharter
to
protect the
rights of all
oountries, md
in
parbicular
the d.evelopingStates,
is
not
foruulatedr.
..,
2.
An UNCTAI Worklng Group,in
whieh,with the
exceptionof
Ireland- anri.I
Luxembourgr aLLthe $tates
of
the
Oommunity and
also the
Commissionare
.re-presentedr was given
the
task
of
elaborating
the
Charter.
Sincethe
beginningof
19?3the
fiorking
roup hashelil three gessions.
fte
fourth
andfinal
seseion
will
take placc
in
JuneL974.
The General AesemblywiLl
haveto
decid.eon
the
terb of
the
final
d"raft
whichwill
deternine,
inter-alia,
the
final
Legal
nature
of
the
instrument.3.
Someprovisione
have aLrea.sr been agreed- upon\r
the
Working Group. Mos*, however,call.
for f\rrther
exanination
or
have been deaLtwith
only in
preliminary
consultatione.4.
In
any case, diecussions onthe
Charter have reacheda
stage where theCommunity
authorities
must examinethe
questlonsarising
and workout
acommon
position
onthe provisions
envisaged..r
?
-OINENAJ, C ONSIDERASI ONS .rd
yandraw-materia].gcrisishasmad.eitamatterof
The
recent
energelevance
to
d.raw upa
Charber formuJ-atingin
theLong term
the
econonicrights
andduties
of States.
Economic andpoi.itical
developments have urrd.erscored.the
importa^nceof
estabLish*ing
a
baLance betweenthe
mutualrights
and. obLigationsof
i.nd'ustriaLizedand d.eveLoping
countries
alike.
This
incid.entaL3.yis
the
conclusionof
presid.ent Boumdtl.lennc when herefore
in
his
lettcr to
the
uNsecretary-General on
the
convenfngof
the Extraordlnary
Sessionof
the
CeneralAssembly
to
the
needto
establish
a
n€w systenof
relationships
based'uponequali.tyarrdtheoommoninterestofa].IStdtes.
The
charter
is
therefore
part
of
a long-te:m
processof
d.evelopmentas
well
asbeing
of
immed.iateimportance.
In
the shorter
termthe object
ie
to
take
accor:ntof
the attitud.e
of clifferent
countries andthe
conceselonsthey
would. be preparedto
maketo
one arrotherin
the
formrrlation
of
the principles
of
the
Charter'In their
Declaration
of
2I
Octobev L972,the
Headsof
State
andGovernnent
of
Member Statee erpressedtheir
oonviction
that
the
Communitymust .rrrespond even more
than
in
the
past
to
the
e:cpectationsof
aLlthe
d.eveloping countriesr'.To
a
}arge
degreethe
general-principles
envisagodin
the
Qhanter mayte
ptaceAwithiit the contert
of this
Declazration'Independ^ently
of
the eituation
as
regard'sthe ertent
to
which thef
5, 6,j
7, 8.specific provisions
of
the
Charter may be e:cpressed.in
terrnsof
bindingobligations,
it is
clear
that thc
Charter may havea
consid.erabLepoliti.cal
inpact.
Thesignificance
of
the
Charter aet an instrument whichtriLl
provid.ethe
guid.elinesthat
Stateswill
henceforth obsel:vein their
econoniorelations
has beenat 'the
oentre
of
rnuchof
tho
discussions,
andis
certain3-y anissue
to
vrhichthe
d.evelopingcountries
attach great importance'
If
the Cha:rtcr,ln its
finaL fotm,
provesin fact to
be generaLLy acceptable an:dof all
theie
adopted bythe
General Assemblyby a
majority
representativ
maJor group6,
it ls unlikely tbat itg
effects
wilt
be
confineclto
those of
a, mere
declaration
of
generalintention.
As aninstnrment
resulting
fromt
-3
-long
negotiations
anct which had received. wid.espreadsupport,
the
0har*eroould. have
a certain influenceon the evolution
of
international
lavr.
Ttsprovisions
might be quoted.in
future
negotiations
or
in
diplona.tic
eorrespord-eneefor
exampl"e, and. evenif
the
Charternis
not
bind.ing,like
a
treaty text, it
r^rould. be
d.ifficult for
a
State
or
reg'ional group against whomit is
invoked.to
ignore
its
prwisiong.
9.
Apositive
approach lead.sto
the
sameconcluslons.
If
the
industria.lized"countries
wantthe
Charberto reflect
the
worLd. economio order which theyd.esire,
lt
fol).owsthat it ie in their lnterest to
assign appropriatepolitical
importanee
to i.t.
The L\ropeam Community shouldplay a
speeial
part in
this
respect
10.
Throughtheir
generaleharaeter,
the principles
of
the
CharLer, wha.tevertheir
legaLnaturer
md;raffect
the
attitude
both
of
the
Member States andof
the
Community. Moreover, martr1rof
the prinelp}es
refer
erpress)"yto
internatic,nal
trad.e
or
employ eoneepts which may coverit in
sueh a way asto
comer.rithin
thefieldl of
the
Communityrs cornrnercial po1iq6(articfe
113); the prineiples
mayalso
affeot
other
activities of
the
Commr:nity,6.g.
r^rithinthe
conterbof
thepolicy
on Associetl'oni'',,,,:Althoughother
principlee
tend.rather
to
coneern
theactivity of
the
MemberStates,
vi.rtually
aL1of
theseprinciples are,
neverthe-less, of
partieuLar
interest to
the CommonMarket.It
follor^rsnot
only
tha.tthe
Communityrmst
ad.optits
position
with
rega:d.to
the
Cha::ter br-rt a1sothat
the
Member Sta,tes*l**,
asrequired-W
Article
L15, proceedby
common aoti.onon
this
matter.11. fn this
oontext, the
Comnission eonsid.ersit
d.esirablefor
the
Oornmunityto
berwlthhin
the
limits of its
ov{n powerE, anobject
of
the
ri"ghts
n:rtr" rltrtrerprovid.ect
for
bythe
Charter. It
should.therefore
be madeelear
that
the
Cha::tercloes
not
apply only
to
Sta,tesbut
al.soto
regionaL groupsto
whj.ehthe
}lemberStates have
transferred.
puirersfaLling
within
the
scopeof
the
Oharter. SPECIFI C CO}TSIDNRATIONS12, If
the
Cornmunity t^risheeto
obtain
the best
resuLte,
it
must eontinueto
take
upa
conmonpositlon,
asrit
did.at
the
prevlous
ses,gionsof
thetlorking
Group.13.
AnnexI to this
eommrnleation eontains r{.etail.ed eomner'.ts by the uommr.ssron regard.ing a1Lthe
proVieionsthat
havenot
yet
been agreed. uponby
the
UNCTAD Wor{ringGroup.
Commonpositions
aas proposed.lespecially in
I
-4
-respeet
of
the
folLowingparticular points:
L/. t
(i)
leaal
natur.g:the future instnrnent
shouldnot
havea
ooercivecharacter and., as zueh, should.
not
create
irewrighto
and d-uties L(see
transitiona"l
paragraph). t..\(ii)
sovereif{rty
ovgrnatura}
resources: al-l the
versions
submitted.for
this
provislon
call for
detaiLed exarninationbefore
the fourth
session
of
the
Working Group (see remarks, ChapterII $
Z)./...\
(
iii)
re,qionaL cooperation:to
the
text
formulated bythe
Working Croupith
the application
of
the provislon
of
the
Charterto
regional
groupsto
whichthe
Member States havetransferrecl certain
powers;
(i")
transnational
companief The Community should reeonsicLerthe
reguestfrom
eertain
Menbercountries
to
d.eletethis
provision
(see remarks,Chapter
rr
$
fr);
/\
(',t)
generalized, prefe-reneeslthe
Comnunitycould
eoneid.er ci.eJ-eting theind.irect
refereneeto
the
erosion
of
preferencesin
the text
already ad,opted
W
the
Working Oroup (see remarks, ChapterfI
$
14);(vl)
deveLopmentaid.:
the
Communirtytsposition
should" beat
leasr
aspositive
asth6t
expreseed.by
its
memberswithin
the
Workj,ng Group on d.evelopment cooperation andin
the
Washington eommrrniqu6of
13 Febmary L9T4 on
the
enerry
crlsis
(see remarke, 0hapterff
$
ft);
/ ,,\
(vli)
gast-westtra4gr the
wordingof
a
provision
coneerningthe
granting
of
the
most-favoured.-nation
aLauee and. related.questions
should be based. uporrthe
resuLts
of.negotiations
in
progresswithin
the
Conferenceon
Security
and Cooperationln
Europe (see remarks, Chapterff
$
l9).
COOFDINATION
14.
Asin
the past, the
MemberStatest
comnonposition
will
be
coord.inatedon
the
spot
ancl presented. bythe
State exeroizing
the Presidency.
Asfor
matters coming under
the
Comrmrnityrsjuriecliction,
it will
befor
the
Oomnissionto
put
forwa^rdthe
Communityposition.
3
1
Thereport
onthe thlrd.
ueeetonof
the
Working Group,in its
o::iginal
version,
i.€.
Elnglish,will
serve asa
referencJ
prp""
(W1E/*c.12/3
da.tedr
;
.;Lll-lI:,-\- it\nlYirv T-L *#
COljllrIf,'trttS CONCEAIIIN(i TITS DR.A3T ''CIIARTEN OF.ECONOMIC RIGHTS
.41{D DUTIE$ OF ST
rf it:|iriil r:'l'u' il
, .. ,,,.-,''l l: '
!
as
containedin
the
Reportof
the
Working Group onthe
Charterof
Eeonomic
Rights
andDuties
of
States
onits thinl
sessLon,held
atthe paleis
desNations,
Geneva, from{
t,o 22 Febnrary 19?4 (documentw/nlrc.nfl,
8 MarchL97il.
t
b
;1-t
A)
fF.a {gt}oJrinF nr.o}ris*one hay's.been a,q,reg4 uoonin:the
Workin&$ropDol
tbe*glertgrr
#
1..
PREAI{BIJE
Paragraph I
IIIT:
.
rf
II
bis.
ft
If
,ter,I
l,]
''
TII
':
fr
ry.
Intrortriotion
and(o)t
il lrT
rI
WI
'I
VIII
ot,
vnfrfAc.
l2f3r
p.3ti
'
P'3tt
t
P'3tf
r
F'3rr
t
P'3/4It
t
P'4"'tP'4
tt
,
P'4lr
r
P'4rnf nf
x.
L?/3,t
ttt
I
CHAFTER 1T
Paragraph
I
cf.
6
$
18 P.8 p.8 p.8.A
t yrv
4
-ii-3
B) The fol,lowi
onsi
PREIItstE
Tlr Tv
' rv
1t
I
lfTt!
comnents
relate
exoLusivethe
Wto
terte
vrhichre
further
r
.L/
Tra.nsitonal
para6raph =
CHAPTER
I
First
line
/\
tsrrnc].pre\e/
/.\
t Ic/
CHAFTER
II
2/
Paragraph
2
r
3 4 4/5 5 5 5 5 6
t5/fi
'8/g
9at
a
}a-ber stage.the subject
of
d.iscu sionsfurther
conslderatLon.Page
of
reLevantterte
in
d.ocu.nrentrn/n/rc,n/t
Pa.ge
of
cornrnentsg!-ven
by
Cornmission;
L 1 t 1 2 3 3 3)/)
b:'.s5
7
a":ncl
preliminary
\1
6 7 7!
s/
text
d.efemed.for
consid,eration paragraphsthat
have onlY beenconsulta,tions ancl
also
reguiret
-iil-I
Para,graph ll fl ll tl fl rl tl tl ll tl tl lf,
6
bis
7
I
g
io
'?J11 L2 13 L4 r.5 L7 r.9 9 9 Lo IO
1I
1? t1rLh2
T? L2/L3 T3 L3/L4 L4a
x 101l
L2 13 14 15t6
11t8
19 2T ?3 25 26 27 28 2B Otherprovisionq
rclating
,tl
to
ChapterII
'zrCIIAFTER
III
Ls/L9
L9/2o 20/2r
2T
aanexe
II
a.nncxe
II
24
t
Paragraph
Lu2
CONCTUDINC PANAONAPH
CHAITER IV
CITAPTER V
y
Propoealarel,ating
to
0hepterII
not
yet
coneidered.q
a
-1-PREAI'{BIE
PARAORAPH
lv(a)
a
Recommend.eit Commrnity Position
In
orderto
beconeistcnt
with thc
porition
taken onthe
subject
matterinChapterrI'paragraphl'A}tenrative].ehguld'besupported'.Theword.
'rachievementrr
ig
therefore
to
be replaeetlby
rrpromotlonrr and.the
word.s I'and. equitablertin
brackcts
should. be d.cleted.PARACRAPH
IV
(b)Recommended. Conmunity Position
Contlnue
to
supportvariant
I
'as
it
stand.s and. opposethe
a,r!-rlitionof
thefffilry"nt
suggestionty
the
USSR 'ronthe
basie
of
equality
andwithout
rtiscrirnina-PARAGRAPH
IV
(d)Spain
is
unlikeLy
to
prcsgfor
ttre inclugion'of the
tert
tn
brackets i.n viewof
the
agrccdlast
phrescof
paragraphIII(o).
I __ r__rc_T__ ___ \ _/ _
PAR.IORAPH V
i
t
Recommend.ed. Community
Positlon
Support
variant
1
with tho dclction
of
boththo
terts in
bracketsilfor
alL countriegrr a^nd.frfor
slI
nationgrr.In
viewof thc
rawmatsrlels issuc
in
ChaptcrII,
paragraph
2, it is
in
thc
intcreet
of
thc"Conminityto
supportthe
last
part
of
the
sentence,still
in
brackcts;
whioh ncad.s tt...whl.ohls
6ninportant
eLcncntof
the
sustained.d.evelopment a^nct c:cpansion
of
thc
eoononiesof
el}
oountricsrr.PIRAGR"APU
VI bis.
Recommend.ed. Community Poeition
Dc1etc
this
para6raphrhioh
duplioates IV
(t)
of
the
Prcaarblc.X'al1-back po,gition
Coneid.cr
a
languagc whtch woul"d, avoid.thc
ugcof
thc
termrrpeacefirl-co-exigtcnccr! and
a poselbliirefei'Cnoi-td*theaabpllbation
of
the
it1Flf cLauseln
East-l{cgt trad.c.TRANgITIONAI, FARAORAPII %
Recomnend.ed. Comrm:nity Posltlon
:
'
Continue
to
supportvariant
2;
rcfiree
variante
1r
I
ancl4
eince a].1 wouldgtve
the
Chartera lega,lly
bind.lng oharacter,4?1L-b?ck eoqltlo{r
It
mey pro\rcd.ifficult
to
malntain Al.terrrative2
asit
stands'
Am6rger
of
clements containedin
Alterrrativgs
3
and4
oouLdbe
considered; alongthe
fo!.Iow'inglinesl
.a
"
The General Aesembly eolmenlydeclares fda'optsJ
the following
princijrles'concenting
the
ecdnomlc'iigh-ts and.dutiei
"of'stated
and" r,rhereapplicable
grorpingsof
States,
to
provid.c b, commonbaeis
for
intertratlonal
eoonomic
relatione
andto'protect thc righte
of
dIl
States
andpartiorlarly
the
rights of
ilcveloplng oounttrleerr.*.
wfnf
Ac.Lz/ir
p.6i
":i
n
:
It
t
-3-i
CHAFTER
I
I
lrIRST LNTE
I
Recommenclecl Commnlty Pogltlon
Prefer
tshould.rto
rehallf
pnrNcrPlq (e)
Recommend.ed. Comrmrnity Posit ion
Support
variant
2
.PnrNcrPLE (k)
Reconmend.ed. Comrnunity
Positlon
preference
ie
givento
Alternatlve
I
becauseof
the
concisenessof
thetert.
The Counmmity cou}d.elso
ooneld.er.trltenrative
3
since
it
mentionsocplioi{ly'a].I
States and oontainsthe
tryoltant
oonoeptof
d'j'fferentiation
with
regardto
dl.evoloplL?S oourttrics.a
I
.i
!I
tty
CITAITERII
$
-cf.
w/af
x,tL/i,
p"8-4-CHAF{ER
II
RIqIr
To 0HOosE Sqolrorq,c srssEr{Tert
a6reed. uponin
l{orkin6
Ororp.t
't3
t
-5
-.
cHAPTERrr
$
aSOVEREIGNTT OVER NAN'RAIJ RESOURCSS
Recomnend.ed. Commr:nity Positio.=;
Continue
to lnsist
onALternstive
4,
the
agreed.tert
by
Community Membersparticipating
in
thc
worklng group,onthe
Charter.
Such insistenceis
par*icularly
warranted. evenif
ALtcrnative
4
cloesnot
d.ealwith
thesupply iseue
in
a
manner which adequatel"y eafeguarrls Comm:nityinterests.
Most
of
the
other
variants
arc
unacceptable,in
particular
the
La.nguageeubmittecl.
by
lraq
a^rrd.h.rgoslavia,
-
Altcrnatlve
I -
(whichreflects
theview
of
a
consitl.erabLe nunber^of
nembersof
the
groupof
I'JJrr).4ackground
.for
the
p::qsgnt positio,nIt
should. however be recalLccl.that
the
vereion
put
forrranl
by the ser'r/icesof
the
Commiseionin
December 1973 rcad as folLows:t'states
shoulclrefrain
from withholcllnge4port
of
their
natural
resourceefor politieal
reasorlEt.rlfn
January 19?4the
Council working grqup on UNCTID working mattersagreed.
to
the
follow"ing wordinglfrThe
exercise
of
this
eovereignty and. theserighte shall
take
accor:ntof
the
reguirements and inter-.d.cpend.enceof
the
economieeof
aLL statesand.
the
neceeaityto
safegr:arrla
Eure anct continuous eupplyof
natural
f€SOI1FCOBr ll
During
the
3rd'session
of
the
working group onthe
Charterin
Geneva,this last
phrase was changcd bythe
Comnnrnlty Member Stateeparticipating
to
beoonepart
of
the
preacnt ALternative 4.rrthe exeroise
of
thie
sovsreignty
and. theserights
shall
take
accountof
the
regutrencnts and, ln*en-depend.enceof
the
sconomiesof
all
$tatee
and,the
neceeslty
to
contributc
to
the
bala.ncedl erpansionof
the
world.eoonoqyr"
1)I
I
*.
wfnf
Ac.Lz/3rpp.
15 a.nd 16f) ,ft
eh.ould. be noted.that
t-heEnglish
verslon
of this last
sentence,repro-duoed
in
the
d.ocumentW/n/*.A;
L3.3r
pa,ge16,
shouLd. read a6follows:
Itthe exercige
of this
sovereignty and:tfrJsc
rights shall
take
accountof
the,l
rl
H It
r.!
i}il
L
I
-5bis-fall-fa.ct
position
In
the
oouraeof
negotiations
trjEC member eou:rtries may wishto
con-sider
a
reservevereion.
Thls
couldconsist
of
a
mergerof
the
first
paragraphof
the
Al-ternatives4
(Comrmrnity) and6
(USA), which would" be folLowed bythe
last
paragraph, unchanged.,of
the
EECvariant.
For
the sakeof
clarity
the nationallzation
igsue could be taken lr. \out
of
pa,re,-gra.ph
2
to
beoomepart
of
ChapterII,
paragtaph10.\1i
Th" reservevariant
wouLd then rea.d ae
follows:
rtALl States
enjoy,
within the
frameworkof
international
Lawpermanent sovereignty Over
their
naturaL resouroe€t and thertght freely
antifuLly
to
disposeof
those resourcesin
theinterest
of
the
economio development and. weLl"-beingof their
peopLes.
fn
the exercise'of
this
eovereignty andthls right,
States
shall
take
a.ccountof
the
remrirementsboth
of
the
inter-deoendence
of
the'economiesof all
Statqs
andof
the
neeeesityto
contrlbute
to
the
balanoect expanslonof
the
world. econor4y.rf(i)
t
in
of
whlch
position
overeomtng the
the
sub*para,gfaphstrong
oppositlonalso
etands more chaneeby
the
Groupof
r'7?rr.Lt
*6-cHAPi'En
rr
$
3INTERNATIONAT
TMDE:
BIIATERAI At{D MttIJTILAtEnAt AnRANCEI@'ITEReconmend.ed. Comrmrnit.v Positi on
$upport ALternative
l
ag olearetlin
the d.rafting
group,
i.e.
onit
the
phrasesin
brackets," exceptthe
word.g'nirrespectiveof
a.r11rtiin
thefirst
gentence.
Constd.eromltting
ileonsistent
with
its
lnterrrationaLobligationsfr
et
the
enclof
the
seootld sentence.Comment
1Supporting
rrirrespbctive
of
a^rqrrf avolds referenceto
d.iscriminationbased. on d.ifferences
ln poJ.ltical,
eoononio antLsoclal
systens,
ard"indirectly
to
the
appLioationof
the
llFt{ olausein
Daet-tfesttrade'
*,
wfnf
Ac,t:zfir pF.
I
anit 9,{
I
I
th
tF ltr.,!fn!.6 l
I
i
a
i
:
:*
-7
-cHAPIER
rr
$
+THE RESPONSTBTLIff OF EVERT s"fATE T0 WORK FOBIISE IDVAI'IqEMENT-QII rTS PEOPLE.
Recommend.eil Conmrnit.v Pogitlon
The Couununity should oontinue
to
supportthe
tert
agreed uponin
the
d.rafting
group,
ourwrlnout
the
eplit infinitive (3rt'
Llne
of
English
tert).
Fa1l-back
nosition
ffi
Sinee *he
texts
in
bracketspolnt,
inter
aLia,
to
erternal
obstacLes whlch hinil.ermobilisation
anct ueeof
the
raeourcesof
Statesto
irnplement eeonomicreforrns,
the
foLlordng sentence oould. be p}acedat
the
end.of
the
tert
of'the
drafting groups
tEachState
should. endeavourto
eooperatein
suchmobilisaiion
end uge.ll
t
fl
t
-7-cHAPrsR
rr
$
4THE RESPONSIBILIIflr Or SVEIY STATE {O WORK.trOR fIIE TDIIAI{CEMNM OF ITS PEOPI'E'
Recomnend.gtL Comnunlty, Positi on
The Cosrmgnity
ahorlit
contlnueto
eupportthe
tert
agreecl upon Ln thetlrafting
gTouprtrut
rrithort
the epLit
infinitive
(3ra.
llne
of
Engliehtert).
FaLL-back
position
Sinoe
the
terte in
braokctspoint
to
obstacles whichhintler
mobilisa-tion
and. useof thc
reeouroasof
$tates
to
impLement economicreforms,
thefollowing
sentenoe coqldt bc pLaoedet
thc
end'of
the
tert
of
the
d'rafting
groupt
nEaohstete shorkl
cndeavourto
cooperatein
such mobi]-isation artdllSCo rf
*.
v:Dfnf Lc.Lzf3r
P.9t
uiArrER
rr
$
r
IIIITER{ATIONAL DIVISION OF. IASOUR
Rec.owenclecl Comnnni
tv
PogilionSuppont
of
Alterraativc
I
(reeult
of
the
workof
thc clrafting
group)with
slight
nodificatlons
to
read esfollowst
nstateg ehould, cooperatc
in
pronotlng e
morerattonal
international
d.ivision
of
labour
a^nil.!n
encouragingstnroturaL
changesin
the
con*erbof
a
baLancedl worlct eoononyln
hamorqrwith the
necds andintereste
of
all
'
esurttriee, especially ilevcloping
ooturtries.nCornnent
the
languago suggestctl.rupports
thc
notLonof
gtllctural
changesin
theworful. econorry
without
eubsoribingto
a4Jr measurcs otr programnesto
beund.er-taken
in this
reepeot.
It
prcscntethe lnterrratlonal d.ivision
of
labour
aga
contlnuoueprociss
whioh$tatas
oan promotcto
becomc morerrtional
thar-Iet
the
prcaent stegc.*,
yn/nfLc,Lzflt
p.93
f
t?':
i :
T
'9'
crrAsrER
rr
$
6RESPONSIBITITY TCIR COOPERATIOil
t
Tcxt
agrccd, uponin
l{orking
0roup.at, wfnf
Ac.L2/3r
p.8-10*
0IIAPIER
II
$
5tie.
pARrrcrpATIoN oF STATES
llr
TUE_ISIERNATI0IfAIJ DE0ISION-MAK-INq PR0qESFRe conme?ited Co, nrmrniibv Poslt j.
9I
Support
the lalgragc
aB agreed. uponin
the
drafting
group,
but naintain
the
oLausc*in
partiouLar
lhroughthc
approprlatc
international
organisationsin
aooordanocwith
thsir
llt.lcsil, thc
d.eletion
of
whleh had been propoaed' by Chlna.t
f
t
>l'
I
11
-CHAJTER
II
$SUB-REGIONAT. MCIONAJ, AND NITSR.NECIONAL COOPERATIOI{
Recommend.ecl Commr.rnity
Position
Support
thc
tcrt
as
clcarcd.in
thc d.rafting
group andrcjeot
thetert in
braokctet1.
ttstatee havcthe
rlght, in
agrcementwlth the
parbies
concerrned,t,
to
partieipate
in
eub-reg{.ona1, reglonaL a.nd.intel-regionaL
aooperationin
pursuit
of
their
cconomio and.social
d.evelopmcnt.All
States
engagedrch oooperatl-on havc
thc duty
to
ensutethat
their
policies
and. thein
stpoLieies
bf
those groupingrto
whiohthey
beLong"r"/-ttott-diecrininatotyJ'
outward-looking, coneistent
wlth
thelr
international obligations
andwith
the
needslof
intcrnati"onal
eoononio oooperation and. havefirlL
regardfor.
/-d.o
not
hamJ
the
legdti.nate
interests
of
thtrd
countries,
especial}yd.evel oping cottntries. rf
Z.
.Adcla
eeoond sub-para6rapn(i)
to
take
acoountof
groupingswith
t
epeolfic
competencea as follor'Esc'r
The principlcs
of
the
present Chartershall
also apply,
wttereopproprlate,,
to
grouplngeto
whiohthe
MemberStates
concemedhave a6:reed
to
tra,nsfer
acrtain
oonpetenoes as regarrls mattersthat
oomewithin
the
soopcof
thc
present lirgtnrment."*.
wfnf
Ac,Lzf3, p.1o(f)
Scerisenrations
rcoordcd!n
thc
Rcpoit
of
thc
Working Groupr'para
t
L|"r:te€c 221of
Doo.wln/rc, l/3,
tn
Annexe1'
*"
-L2
-CHAPTE"R
II
rira
RrcHr,or srArms qgB$lF,FIr qBog$Dy4s0B$gpDsmtq4gryrsJN
sclmrcE aND-?ECITNOLOGT4ecom$sP{ed CommrgtltJ Positi o3
ALternative
2
proposecL bythe
Corurunity should be maintained".I.
I'a1l-backposition
No. LConsid.er
the
mergerof
the
Comm:nityalternative
and.the
acceptabiepotion of
the
tert
eubmitted. bythe
"77"i
mocLifiedin
the
sensethat it
d.oesnot
prescribe a
d.uty.I'Every
State
hasthe night
to
benefit
fromthe
advances a"nd d.eveioprnentsin
selenee a,nd. technologlyfot'
the
aeeeleration
of its
eoonomic anil sooiaLd.eveLopment. Access
thereto
and"transfer thereof ehall
befacil.it'ated.r
properregard. being paid.
to
the
epeciaL need.sof
d.eveLopingcountries
as weLl asto
the
rights of
holal.ersof
such technoLoryin
a
spirit of
mrtual
cooperation.EVery
$tate
should cooperatein
the
estabLiehment, strengthening and promotionof scientific
research and.technological
actiwities
which heLpto
expa.nd. and transformthe
economiesof all
countries, especially
d"eveLopingcor:ntries,
to
cbntribute
to-the
oreation
of
technologies
adapted,to
the
needsanil
realities
o'fthese
countriesra,ndto
reinforce thei.r
own restearch.rt2.
FaLl-bagk posi-!-ion No" 2trBvery
$tate
hasthe
right to
benefi*
fnornthe
arlvances and. d.errelopmentsin
scienoe and.technolory
for
the
aoceLerationof its
eoonornic and-social
d.eveLopment. A.ccesetheroto
and.tmnsfer
thereof
shall. be
faciLitated.r
proper rega:d. heingpaid
to
the special
need.sof
d.eveloplngcountries
as well- asto
the
rightn of
hold.ersof
such technoLogrin
a
spiri* of
mutual coopera*uion,"E\rerT
State
shal.l
oooSreratein
thb:eetablishment, strengthening
and promotionof
ecLentific
research and. techno)"og'icaLactivities
whichhelp to
erpand. and. trannform
the
eeonomiesof all
countrdee,espeeially
d"evoiopin6couritries,
to
contribute
io
the creatlon
of
technologies
ad.apted.to
the
needsand.
reaLitj.es
of
these
countries,
andto
reinforce
their
oun resea.rch.rlt
I
'
"t431'
I
rt3-cHAPlaR
rr
$
9ugumnrl,n. p{srrcqramon,
r,r
matqs
w
wonm pneqsRecommend.ed. CornmuniH Posi-t.+ on
--Tf
Support
Al.ternatlve
2,
the
outooneof
the
cl.rafting groupts work.!'alL-baek
position
The Comnunity coulct
also
eubscribeto
Alternetive
I
rvhleh d.raws noreertensively fron the To\yo/fl{fll
d.eclaratlon t]ranAltenrative
2.ct.
w/t/Ao.12/3,
p.11I
|l
ilu
-14-i I i'ir
cHAPIERrr
$.
10',
REfr]LATTO$w
Recorunend.i;tt gonml{rlty Position
Malntai.n ALterrnattve
4r
submittedbn.th*
corununity andthe
u$A'Fal.l-back
position
.SinceachangeintheUs.A'poettion.cannotbeprec1.ud.ed.anclsincethey
may consid,er
a
nergerwith AlternEtive
11 propoeecL by Mexi.co, provided.that
dLue
recognitlon
is
givento
the'rrelevant
normstof
interraatlonal
lawrr,consid.er
the
ad.optionof
the
first
sentenceof
Alternative
1.
The languagecorld.
also
include
a
concept introd.uced. by Japa.n and. Chil-e(cf.
ALternatives5
andJ)
na.ureLyto
reguire foreign
investmentto
conformto
the
d.evelopment obJectives and.priorities
of
$tatee.
The sentence wouldtherefore
read. asfolLous:
uEVery
$tate
hasthe
right to
regulate
andcontrol foreign
investmen
1}
w'ithin
its
juriscl.iction
ancl.to
reguire
such investmentto
conformto
its
objectives
andpriorities in
the
fielcL
of
development.rtComment
The
first
sentenceof
Alternative
4
or
of
Alterrrative
I,
oouLd befo11owed'tyinvokingthenationa1tzationissue-1.ogica11yitcou].dbe
dealt with
unclerthis
paragraph and.not
in
oonnectionwith
sovereignty overnatural
resouroes(para.
2)
-
together
with
d.isputes 6n compensation(cf,
the
Mexicanvariant
on paragraph LO andthe traq/fugoelavia
varia,nt on paragraph2).
Tothe
first
sentence shouldtherefore
be adcLecL thei
following
safeguarrl cLausecilEvery
State
hasthe
right
to
nationalizer
expropriate
orrequieition the
resources und.erite
jurisd.iction
on ground.sof
public
utility,
secuiity
or nationsl
lnterest.
This
right
shall
be exereised
in
aceorrlanee w"ithinternationel
Law;in
particular
with
regard.to
the
paynentto
the
ownerBof
pronrpt, ad.eguate andeffective
compensation. rltt
Any cliapute on cqnpeneation whLch mayariee
shaLl be resolved.in
acconilano€
wlth
inter*reittona^llaw,
inolrrdting enypertinent
instnrments
,concluded.':$r the'r,Statep concerned..
tt
, :
-
,?
_15_
:
i
+
cnaFTEnrr
$
11REGTJIATIoN 9F [nANSryAproNAt
0oRPoRATIpNS
:Recornrnend.ed. Comm.rnlty Poeition
In
view
of thc
scnBl"tivecharactcr
of thc
iseuelt
cl.oesnot
seem possiblcthat
the
Community and,,.its Memberoountrlcs
can maintainthe position
to
askfor
the
d"eletionof
this
paragraph.
Eryena holding
position
as a€reed uponby Membcr
statee
in
Janusry 19?4 oa,nvcry
probeblynot
be maintainedin
the forthcouringnegotiatlong.'
Moreovere eettienent
of
the
issue
ig
also
in
theinterests of
tha
Comrunity concernlngactivitice
of
non-CornrnunityTrans-nationals
onits
ownterritory. It
shouldbc
renenberecLthat
decisiongof
the
Enropcan Court have undcrlincil.that
thc
ectivitj.eg
of
sueh corporationo,even outsid.e
the
territory
of
the
Comnunityr somewithin
its
competence. Thefollowing
corlrse can ther,cfo'i?te
consldcredl1.
Acceptthe
firgt
gentenc6of
AltcrnEtivc
L,
incLud.ingthe
terts
in
braokets.Z,
fhere are,
howevcr, gravcttifficllties
overthe
second gentencewhlch shoultL b6
rejeoted.
Paragraph Il'couLdL
thereforc
neadr
:rr8very
Statc
hasthc righ*
to
regulato, endcontrol
tra,nsnationaLcorporatione,
in
a non*d.lscrininatou
waJlrwithin
ite
nationaLjuried.ictlon
andtp
takc
mcasures neqesoa,qrto
ensurethat
such
:corporatione conpLy
fully
w'ith
ite
la;wa,nrleg
a6d-regulations'
Fall-back pogition
If it
proves impoesibleto limit
paragraph 11to
the
first
sentencetthe
fol,lowing
second sentenoeie
suggested'for
congid'erationl
I'EveryState
shalLta t""Ai to
eonsi.iler
/-to
gtvc
favourab1e coneiderationtoJ
ssiet
ln
thc
ful
rentationJ
ragueste frorn
othcr statcs
to
aesiet
ln
thc fulfilmcnt
I
implenof
this right ln
thq
rcguesting Statc.tl
&.
wfnf
Ac.Lz/\
p.11t
-15-cHAPTER
rr
$
rzDIS$IMAMm$'I AlrD usE
or
TI{E- rys(XlRqgls IqqqP FOR DgtIEtoPll'IE[\rT Pu,RPpsEs .Recomnended
Co@
It ig for
Member$tates
to
e[eoide uhethorthey
wishto
supportthis
point
being d.ealt
wlth
in
thq Shartcr, or
whether,.it.shouLcl be d.eleted. as proposed'by China.
.l I
&,
w/n/Ac.Ll/3r
pF.
1I
andu
n
'
",y-l'i
_17*
t
+
ciraPTER
rr
$
13coopERAqIoN T0 r$oouBActs, Ec0Ifo['{Ic cncegH
Recorrunended. Comrrunity Poei€ on
Support
thc
tert
aB oloa.rsd.in
tha
drefting
gloup.Fall-back
nosition
Consid.er agreeing
with the
tert in
the
first
braoket,
howevermod.ified.,as
fol.lowst
rr...;
while
respeotingthe prinoiple
of
eovereignequality
of
States;
...rr
Comment
The second.
bracket
should.bc
ornitted sinoeits
contentls
alreadyd.ealt
with
ln
thc
uord.rrcooperateft.
Thetert in
the
last
bracket
shouLdbe rejeoted-
since
it
wotrlcLinply that
unwarranted"conditions are
in
fact
being imposed on d.eveloptng
countrles
a,nd,since
the notion
of
sovereigntyis
alread.y aontained,in
the
supported'tert.
et.
wfnf
Ac.Lafir
F.12-18-CHASI'ER
II
cn\TERAtIsm PREfSRM{TIAL TfiEAT}@I! -wmnOUr
mfipnocat
c I4e
l
,r
i
o
}EVEIOPING CqJIfIRIES.
Recornrnended Community Position
ALter:rative J.,
text of
the
drafting
group,
should' be supported'after
the
foLl,owing modificati'ons have been made:rLd
establish
a
mutually aooeptabl-e and.ilDevelopecL
countries
sholgeneralised. system.-4f _ l-/
tarlff
preferencesrwithout reciprocity
or diecrimination,
to
the benefit
of
developingeountries
con-sistent with the
reLevant agreed conclusions ard.the
relevantd.ecisions ae ad.opted. on
thls
oubjeetin
the
frameworkof
thecompetent
internati
onal
organisations. rlThe
ensuin6
sentencein
Alternative 1
should be separated. fromthe
first
eentence and. irrd.ented.. Fromthe
first part of this
sentence rtdeveloped, corrntriee should. aJ"eo
give
serious
con-slderation
...rr
the
word fralsort should. be deleterl'It
wouLd. be preferabLeto
eLiminatethe ind.irect
referenoe mad.ein
the
last
sentenceto
the
erosionof
preference,but
in
thelight of
the
d.eliberatlonsin
denevathere
is
a d.angerthat this
woul.d,
not
be acceptabLeto the lrlTrr.
The argurnent could. be ad.vanoedthat
the
l*st
sentence appearsto
repeatthe
substanoeput
fonrard
in
Chapterff,
ParagraphtJ, ed
coul.dtherefore
boonritter1..Ifthissentenceisnonethe].essretained.,itshou1.d.
es
in
the
previous sentence-
stand. aBa
separate sub-paragraph.It ie
recalled.that
language introdueed.in this
respect by Srazi). and.mod.ified
in
the
courseof
the
d.eliberations
read asfollows:
tt
In
the contert
of their
international
economiorelations,
I
deveLoped.
countries
shall
a.void an adverse impactof
suehrelatione
uponthe
ad.vantages which d.evelopingcountries
d.erivefrom general
tariff
preferences andother
differentiaJ.
measuresso as
to
pronotethe
sustainecl clevelopmentof
the
national
economies
of
the
d.oveJ.oping countries,fl"''V1';,,,
'r
i
!i
ii
tl
t
-19-cHAr{rER
rI
$
tr
TRAr{$FER T0- pEvEropr{G COJVTR{ES
0r
FI$A]{pIALFqrBcES
UNpEn FAVoUR4gIETARIvIS AND CONDITIONS
Recommend.ed. Comrrunity Position
Sinee
Alternative
1,
aeorig"inally
submittecl bythe
Unitecl. Kingd.omis
more
restrlctive
thanpoeitions
subseguently taken bythe
Comrm:nity Member Statesin
the
Council WorkingParty
for
Development Cooperation and'ln
thcfinaL
Comrnrniqu6of
the
Washingtonhrerry
Conferenceof
l3th
Febnrary 19?4(i) tthe
Commission reconmendsthat
coneid.eratton be givento
the following
tertl
ttALL
States
shoulct make strenuousefforts
to
ensure aneffective
increase
of official
development assistance andto
encourage theflow
of
private
resourcesto
deveLopingcountries,
in
ord-erto
reinforce the
efforts of
theeecountriee
to
acceleratetheir
economic and.
eocial progress.
Official
d.evelopment assistanceshould. be traneferredt
to
the reciplent
d.evelopingcountries
und.erfavourable terms ancl, cond.ltions
in
conformitywith the particular
circrxngtancesof
eachreoipient
country
or
groupof
reclpient
countrieg. rl*.
wfn/Ac.Lz/ir
F.t3
(i)
para. 1o;
agreed.by
aIlfitt"t
stqtes.
+
3n
-20
-CHAPTER
II
,
ECONO}MC
-,|
COOPETATION AMONG DE1MIOPING COUNTRIEStert
agneed upon by Working 0roup.at,
wfofAc.t2/3,
F.8L6
t
CHAPTER
II
-21
-TArfflrc Accou]\Tr
or
ffiE
II{TTEAES.Tp qF$I{q
cgnsrRlBs IN lfi}rUAL-EC0N0.lWCRET,ATIONS
Recomr.aend.ed. Cggruu+,ity, Fpsit i on
Continue
to
conslderAlternative
L,
as tliscussecLin
the drafting
groupwith
la,nguage pnoposed.by
conrnrnity Members. rtALl
States havethe
duty"to
conducttheir
nnrtual eoonornicreLations
in
a
manner which takesf t*tyi
into
aocountthe
negititn$*"J
lntereste
of third'
countries'rlFall-back
position
No.I
[All
States havethe
duty
to
cond.uottheir
mutual econonic re]-ationsin
a
manner which seeketo
avoicLto
the
rnaxlmumertent
possiblepreJucliclng
or
advcreeLyaffeoting the interests
of
third
countries,in
particrrlar
d.eveloping countrieg' rlFaLl-back
nosition
No. 2rrAl.L States have
the
duty
to
conducttheir
nnrtual economicrelations
in
a
manner which '&void.gto
the
naxirnnrn erbentposslble
prejud'icingor
ad.verselyaffecting the intcreste
of
third. countries,
in
particul-ar d.eveloping oountries. rlComment
The
falL-back
positions
above stem fromthe
inpression
gAthered'in
the courseof
the
3rr|
sessionof
the
working groupthat
the
conceptof
trtakeefgLly
into
acOorrntrr mail prove gnacoeptableto
the
groupof
rr77'|'
The notionput
for,jnard bythe
r,??,,of
nin
4
maJrner which (aoesnot
prejud.iceor
adverselyaffect)tt
is
unacceptabLefor
the
Connrrnity'If
the
commnity doesnot
succeedin
inserting
into
the
final text
of
chapter
II,
paragraph2
undlertaklngsin
respeotof
reliable
and' steady suppLiesof
ratr material-g,in
ord'erto
coverthis
reguirenent-
at
Leaetto
a oertain ertent
-
the
tenn
ttlegitimaterrw'ith
respectto
the interests
of
thircl. countries
should.bc
avoid.eil.in
paragraphIJ.
Shoulcl, however,para-graph
2
involve obligatlons
for
reliiabls
ald
stea.dy euppLiesof
raw
materials,the
conceptof
ttlegitimate interestsrr
canbc
retained'in
paragraph 17'L7
C
I
7v
t'I
t
iL
l
j
1t
if
t22r
CHAFTER
II
sPEcIAr
Aqrq{rloI
90, rrEAs.r pE\rEto{p_ cgrNTIrEsfert
a6rced. uponin
l{orking
0rgup.et,
wfn/*c;tz/1,
P.818
;
I
i
)
i
i l
I
I
l.
js
:
I
:
:
l
:
i
:
:
l
it
-lt
i
o
-23
-CHAPTER
II
RffiAqIoNS Bgfiilmf CoUNTRIES Wmfi DrII.EnmrT EpoN0MIC AND SoCIAT SySTn{S
Recoilnend.ed. Commmity Position
Maintain
.[lternative
4
(EBe)since
it
coversin
a
eatisf,actory..mannerthe
notion
of
the
d.ifferenoeein
the structurp
of
the
trad.ing systeme,of
faolLitating
the trade
betwcencountrles
of
d.ifferent
systems andof
the need.for
mutual ad.vantages and.obligations.
However,in
the
light of
theoutcome
of
the negotiatlons
on.CSCS';, e4pectedto
be finighecl.in
NIaV Lg74,new langua€e may be consld.ered d.uring
the
{th
seesionof
the
working group.Fall-back
position
No. LWith
this
rege:rrationa
poesible
baLl-backposition
rnay beto
preced.e the EECaLternatlve
with the
first
sentenceof
Alternative
L
proposeil. by Mexico,Yugoslavia and. A1geria, na.urelyl
rfstates have
the
duty
to
co-exist
in
tolerance
arrdlive
together
in
peace,
imespective
of
differenees
ln political,
economic,social
and
cu].tural
aystems, andto
take
into
accountthe
changegthat
are
occurring
in
thc
world
in
the
eoonomio,political
a^rrd.technolog.ioal-Epheres. fr
FalL-badcposition No. 2
Consider supporting
Alternative
3
(USl)with the
suggestionof
replacingthe
word.gfrto
remove obetaoleeil byprogressivelytlto
red.uce obstaclegrr,at.
w/nfAC.LzfJ,
p.L4 L9{
t
-24
-oTHER PRoPOSAIS nEIJATII{C TO CI{APIER IIjLQ{LImT!_goNsmEruD
FI
T!s';t
r
e
WORKINC PARTT
Frorn
the
12tcxts
eubmittedby a
nunberof
clelegations and concerningvarious ieeues, only
the
proposal mad.e by Francedeallng
with trade
in
connod.iticc ehould be coneld.crecl and. eupportedl by
the
Connunity.t
-25
-0HAPTER
rrr
$
1sEA Bm Al{D .o.cEAt{ lT,ooR pYo}ID T,trE LIMITS
or
NATIOITAIi .nInISDICTIONRecommended. Comrnrnity Position
Support
varient
3
(tut
cl.elatetert
irr
brraoket beoauseit
duplicatesthe
first aentencc),
:Comment
In
view
of
the
forbhoornlng Conference onthe
Lawof
the
$ea, theComnr:nity should. oontinue
to
reseffe
its
position
penilingthe
outconethereof.
et, rn/n/ac.l2/3r
pp,
19 end. 20,J'
75:
'.
t
a
-26-0IIAPTER
rrr
$
2PRESERVATION OF TITE EIfVIRONMENTT
Reoommend.edl Commmity Positlon
.:
Support .[1te:srative
2
becaueeof
the ].ink
estabLlsheiLwith the prlnciples
set
forth
in
the
cleoLarationof
the
UnitedSations
Conference onthe
Human Ehvironment. Rejectvariant
f
whiohie
too
demand.lng and. goestoo
muchinto
d.etai1.
cr.
TDlAc.lzf3r
pp.
20 and. 2Lin
}
+
?27
-CONCTUDING PARAGRAPI{
)7
i
)
i
a Re-conrmended Comrrunity Po$lti.gn+
Nei.ther
the Iraqian nor the Philippine
proposalare
desirabLe frornthe
Connnrnityviewpoint.
Ilorrever, son€ suitabLe wortlingto
conoLude the Charber, which respectsthe
Status
of
the
d.oournent, would. be appropriate.ct.
t.DfnfAAc.l"a/3, p.-29_
.t v
cHlsrllRq
IV
4lln Y 0F THE DRIST oUTIIIE PntrPltB$,q .dP TI{E F,InsT SESSI.0N 0.r mIE'
}[oRKINc cqguP,{lq FEBS.lAxq_1q73. ,31ry I{0o Stlsc,E RE-ryAlENq..*
a
J+
CfiAPTF,R IV
IMPLBMNTATION
Eec-o!qrqe44.ed--q@
Support
the
pnoposal nade by MenberStates
of
the
Commrnityto
delete
thetitle
and paragrapheI
and.2,
There seemsno
caII
for a
TCONCLUDING SECTION'(.but see remark ma.d.e rrnd.eT TCONCLUDING PARAGRAPII| above).
*.
w/nf
AC.r2/3, Annexerr
CHAPTER V
t
FTNAL, PRovr$Joti$Recomnrend e-d., CoEmunit.y
fosi.ti
onSupport the-propdsalmade by Member
$tates
of
the
Commr:nityto
d.eletethis
Chapter.
*,
rt/a/Ac,L2/3,
annexerr
7v,
i
i