APPENDIX I

MEMORANDUMS FROM THE PREPARATORY MEETING FOR THE CONFERENCE ON INTERNATIONAL COOPERATION, OCTOBER 13, 1975

AIDE-MEMOIRE ATTACHED TO THE FRENCH GOVERNMENT'S LETTER OF INVITATION DATED SEPTEMBER 15, 1975

1.1. It has been agreed that the questions to be discussed during the dialogue between industrialized countries and developing countries are energy, raw materials and the problem of development, including all related financial questions. 1.2. These questions will be dealt with on equal footing. The participants in the dialogue will in particular spare no effort to advance toward constructive solutions on each of these subjects.

2.1. A new preparatory meeting will be held in Paris at as early a date as possible, and no later than October 15, comprising the same members, at the same level and in accordance with the same rules of procedure (particularly as regards observers) as the preparatory meeting last April.

2.2. The name of this meeting will be: "Preparatory meeting for the conference between industrialized countries and developing countries" or "Preparatory meeting for the conference on international economic cooperation". 2.3. The task of the preparatory meeting will be:

To confirm the consensus reached at the April preparatory meeting on the convening of a limited but representative conference, on the number of its participants and on the procedure for their selection.

To submit to the conference proposals on the setting up of committees and their composition (members and observers).

2.4. The preliminary meeting should be prepared in such a way that it reaches a consensus within no more than two to three days.

3.1. The preparatory meeting will be followed up, within a maximum of two months, by the conference itself. The conference will comprise 27 members, eight from the industrialized countries and 19 from the developing countries. Each of these two groups will select its representatives to the conference within one month after preparatory meeting.

3.2. The conference will open at the ministerial level. In order to ensure the actual participation of all the ministers, it would be preferable that its duration does not exceed three days.

3.3. The essential task of the conference will be to decide on the proposals to be submitted for its approval by the preparatory meeting.

3.4. This should induce it to set up four committees, corresponding to the themes of the dialogue, to determine their composition, to set general guidelines for them within the framework of paragraphs 4.3. to 4.6. inclusive and to agree on what follow-up their work should have.

4.1. These committees will not have more than 15 members. In determining its representation in each committee, each of the two groups at the conference will choose from among its members, those who, because of their special interest and the overall significance of their participation seem best suited to take part in order that the work may be carried out in an effective and responsible manner. The chairmanship of each of the committees will be assumed by two cochairmen designated by each of the two groups respectively.

4.2. The committees will be composed of high-level experts representing their government.

4.3. The committee on energy, within the framework of an overall study of prospects for energy production and consumption in the world, including hydrocarbons, will be entrusted with facilitating through suitable ways and means the arrangements between oil producers and consumers which may seem advisable.

4.4. The committee on raw materials, through suitable ways and means and taking the existing situation into account, will be entrusted with facilitating the arrangements which may seem advisable in the area of raw materials-including food prodnets-which are of particular interest to the developing countries.

4.5. The committee on development, through suitable ways and means and taking the existing situation into account, will be entrusted with facilitating the arrangements which may seem advisable in the area of cooperation for development.

4.6. The committee on financial affairs, while respecting the jurisdiction of international institutions (IMF, world bank), will study all financial problems, including their monetary aspects, related to the work of the three preceding committees. It will be composed of an appropriate number of members from each of these three committees.

4.7. The committees on raw materials and development will, in particular, take into consideration the work carried out by other appropriate international bodies and will establish the necessary contacts with these groups.

4.8 Joint meetings of the co-chairmen of these committees may be planned if the need arises.

4.9. Observers from organizations which are directly concerned with the prob lems being discussed will be able to attend the committees and will have the right to speak.

5.1. The conference will meet again at the ministerial level in about 12 months.

5.2. One or several meetings of the conference at the level of government officials may possibly be held at least six months after the first meeting of the conference at the ministerial level.

LISTS OF SUBJECTS TO BE DISCUSSED BY THE COMMISSIONS, AS PROPOSED BY THE UNITED STATES OF AMERICA

COMMISSION ON ENERGY

(1) Oil prices, their relationship to long term demand and supply for energy and to world economic progress;

(2) Security of supply and markets for oil and oil products;

(3) Cooperation among developed and developing countries to promote increased energy supplies.

COMMISSION ON RAW MATERIALS

(1) Access to supply and markets for raw materials;

(2) Problems of stability of export earnings:

(3) Growth and diversification of export trade;

(4) Enhancement of long run supply of raw materials through application of capital, management, and technology with mutual respect for contractual obligations:

(5) Enhancement of functioning and stability of markets for commodities, including food, on a case-by-case basis.

COMMISSION ON DEVELOPMENT

(1) Problems caused by payments deficits of developing countries particularly the most seriously affected;

(2) Financial assistance, arrangements conducive to the transfer of technology, international investment and capital market access to accelerate growth in developing countries;

(3) Promotion of agricultural and food production through, inter alia, enlargement of world food production capacity, particularly in developing countries, and food aid;

(4) Promotion of development through enhanced trade opportunities among developed and developing countries;

(5) Policies for promoting rapid industrial growth.

COMMISSION ON FINANCIAL AFFAIRS

Financial issues related to work of other commissions, for example:

On Energy:

Financial consequences of energy prices;

Conditions for international investment, including placement of surplus oil funds.

On Raw Materials:

Financial implications of commodity arrangements;

Export earnings stabilization.

On Development:

Financing of investment projects in the developing countries;

Financing of food imports of developing countries and increased agricultural production;

Approaches to payments deficits of developing countries.

DOCUMENT SUBMITTED BY ALGERIA, SAUDI ARABIA, BRAZIL, INDIA, IRAN, VENEZUELA AND ZAIRE, IN CONNECTION WITH THE SUBJECTS TO BE DISCUSSED BY THE COMMISSIONS

The delegations of the countries mentioned above recommend that the general guidelines be inspired by the provisions of the Resolution 3362 of the Seventh Special Session of the United Nations General Assembly on "Development and International Economic Cooperation", and also take into account, inter alia, the following:

1. The Commission on Energy should consider: development and demand of energy, hydro-carbons and other resources, including the protection of the purchasing power of energy export earnings.

2. The Commission on Raw Materials should consider: development and supply conditions of raw materials in respect of development needs of developing countries, including the revalorization and protection of the purchasing power of developing countries export earnings.

3. The Commission on Development should consider: trade (access to markets for products of developing countries, etc.; accelerated industrialization; transfer of technology; development of agriculture; development of infrastructure; problems of supply of food and fertilizers (special attention to devising measures for ensuring adequate supplies of food and fertilizers at reasonable prices to developing countries); special and urgent attention to the question of the grave difficulties of MSAC's created by the current economic situation; and the need to increase present assistance to meet their pressing requirements.

4. The Commission on Financial Affairs should consider: relevant aspects of international monetary problems; financial co-operation and investment; and financial flows and investments in industrialized countries, including the problems of long-term investments, the protection of the real value of financial assets and problems of the international financial markets.

15 OCTOBER 1975.

CORRIGENDUM

Paragraph 1 of Doc RP II/10 should read as follows:

"1. The Commission on Energy should consider: development and conditions of supply and demand of energy, hydro-carbons and other resources, including the protection of the purchasing power of energy export earnings."

FINAL DECLARATION OF THE PREPARATORY MEETING FOR THE CONFERENCE ON INTERNATIONAL ECONOMIC CO-OPERATION, PARIS, OCTOBER 16, 1975

1. The participants in the Preparatory Meeting for the International Conference proposed by the President of the French Republic, which was held in Paris from 7 to 15 April 1975, met again at the International Conference Centre from 13 to 16 October 1975 under the technical chairmanship of Mr. de Guiringaud, Ambassador of France, with a view to pursuing preparation for the dialogue on energy, raw materials, problems of development, including all related financial questions.

2. The ten delegations confirmed the agreement of their authorities on the convening of an international conference on these questions. They decided that the Conference will be called the "Conference on International Economic Cooperation", that it will be held in Paris, that it will be composed of 27 members designated as indicated below, and that it will be convened at ministerial level on 16 December 1975 for a session of two or possibly three days. The SecretaryGeneral of the United Nations will be invited to the Ministerial Conference.

3. The European Economic Community, the United States and Japan, on the one hand, and the seven developing countries participating in the Preparatory Meeting (Algeria, Brazil, India, Iran, Saudi Arabia, Venezuela, Zaire), on the other hand, will assume responsibility for the designation, from among their respective groups and according to the procedures which the industrialized countries and the developing countries respectively, deem appropriate, of five industrialized countries and twelve developing countries, to be added to the present participants so as to bring to twenty-seven the number of participants in the Conference. The French Government will be notified, within a period which should not exceed one month, of the list thus established of the delegations to be invited to the Ministerial Conference.

4. The ten delegations also decided that the Conference should have two cochairmen chosen respectively by each of the two participating groups from among its members, and that they should preside alternatively over the meetings in a manner to be agreed between them. The participants in the Preparatory Meeting recommend that the two co-chairmen should be designated as soon as possible after the lists of participants in the Conference have been completed, and they suggest that the two co-chairmen should begin, immediately after being designated, to take together all necessary steps, in liaison with the host country, to ensure that the Ministerial Conference proceeds satisfactorily.

5. The Preparatory Meeting proposes to the Ministerial Conference that it set up a commission for energy, a commission for raw materials, a commission for development and a commission for financial affairs. Each of these commissions should consist of fifteen members, ten of them representing developing countries and five representing industrialized countries, chosen by each of the two groups of participants in the Conference from among its members.

6. In determining the composition of its representation in each commission, each of the two groups at the Conference should choose from among its members those who, because of their special interest and the overall significance of their participation, seem best suited to take part in order that the work may be carried out in an effective and responsible manner.

7. The chairmanship of each of the commissions should be assumed by two co-chairmen designated by each of the two groups respectively. Joint meetings of the co-chairmen of the commissions may be planned if the need arises.

8. The Preparatory Meeting recommends that the intergovernmental functional organizations which are directly concerned with the problems considered, and which the Ministerial Conference deems to be able to make a useful contribution to their discussion, be represented on a permanent basis in the corresponding commissions by observers with the right to speak but without the right to vote, and hence not participating in the formation of a consensus. In addition to the United Nations Secretariat, the list of these organizations should include, in particular, OPEC, IEA, UNCTAD, OECD, FAO, GATT, UNIDO, UNDP, IMF and IBRD. Furthermore, each commission may invite appropriate intergovernmental functional organizations to participate as observers ad hoc in the examination of specific questions.

9. Members of the Conference wishing to follow the work of a commission to which they do not belong should be entitled to appoint a representative in the capacity of auditor without the right to speak.

10. The activities of the four commissions whose establishment is recommended by the Preparatory Meeting will proceed on the basis of the relevant paragraphs of the Aide-Memoire annexed to the French Government's invitation to this Meeting, in the light of the following clarifications and interpretations: (a) It is understood that the Commission on Energy will facilitate all arrangements which may seem advisable in the field of energy.

(b) It is understood that the Commission on Raw Materials will take into account the progress made in other international forums and will be entrusted with facilitating the establishment or reinforcement, as the case may be, of arrangements which may seem advisable in the field of raw materials— including foodstuffs-which are of particular interest to developing countries.

(c) It is understood that the Commission on Development will take into account the progress in other international forums and the results achieved, and will be entrusted with facilitating the establishment or reinforcement. as the case may be, of arrangements for accelerating the development of developing countries, on the basis of close co-operation.

(d) It is understood that the Commission on Financial Affairs may discuss financial issues, including their monetary aspects, of importance to member countries, while respecting the jurisdiction of international institutions (IMF, IBRD).

(e) It is understood that the four Commissions should function in parallel and that the results of their work are linked and should be submitted to the Ministerial Conference.

11. It is agreed that any delegation may raise any subject relevant to the themes of the dialogue for discussion in the Commissions.

12. It has been agreed in accordance with the relevant paragraphs of the abovementioned Aide-Memoire that the Ministerial Conference will be called upon to set the general guidelines for the work of the Commissions.

13. The Preparatory Meeting recommends to the Ministerial Conference that the relevant paragraphs of the above-mentioned Aide-Memoire, as interpreted and clarified above, as well as the above-mentioned principle that any relevant subject may be raised for discussion in the Commissions, serve as the general guidelines for the Commissions.

14. Some delegations have already tabled with this Preparatory Meeting documents proposing subjects to be discussed in the Commissions. The Preparatory Meeting recommends that the Ministerial Conference agree that these and any other proposals which may be tabled subsequently in accordance with the general guidelines be discussed in the Commissions.

15. As regards the practical measures, the Preparatory Meeting recommends that the Conference adopt English, Arabic, Spanish and French as official languages and working languages.

16. The Preparatory Meeting recommends that the Conference adopt the Rules of Procedure which it itself had adopted, and which are based, in particular, on the principle of "consensus", according to which decisions and recommendations are adopted when the Chair has established that no member delegation has made any objection.

17. The Preparatory Meeting considers that the Conference should have an international secretariat with an exclusively administrative and technical function, the Ministerial meeting being responsible, on the basis of proposals by the two co-chairmen, for determining its organization, establishing its operational procedure and allocating the financial costs in respect of it. It is understood, however, that pending a decision on the provisions to be adopted for the continuation of the work, the French Government will assume responsibility and provide the secretariat for the Ministerial meeting scheduled for December 1975, under the conditions in which these services were provided for the Preparatory Meeting. 18. The Preparatory Meeting finally recommends that the Ministerial Conference decide to meet again at ministerial level in about twelve months' time. One or several meetings of the Conference at the level of government officials could possibly be held at least six months after the first meeting of the Conference at ministerial level.

19. In conclusion, the participants paid tribute to President Giscard d'Estaing for the initiative taken by him, thanks to which a dialogue was successfully initiated, and to the French Government for all the efforts it has made towards that end.