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77/MM(II/49 page 40

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17. Developed countries should assist the lead developed coun co-ordinated man er, from the planning, roduction and trasportation stag to the stage of ensuring sales of their products at remunerative prices. 18. Developed countries and international organizations should adopt measures to foster the creation of industries for on-the-spot processing of raw materials and food products.

19. The preference-giving countries should formulate such modalities within the framework of the generalized system of preferences as to favour, in particular, the least developed countries.

20. The least developed countries should be granted special treatment in the multilateral trade negotiations, priority being given to tropical products of particular interest to the least developed countries.

21. Special measures, including exemption from financial contributions should be taken to accommodate the needs of the least developed countries in the integrated programme for commodities.

22. The developed market economy countries and the socialist countries of Eastern Europe should:

(a)

Provide long-term guarantees of a reasonable level of sales of the products of the least developed countries;

(b) Give favourable treatment, in the case of government procurement, to imports from the least developed countries;

(c) Assist the least developed countries to develop the production potentialities of food, energy and other resources including

manufactures.

23. In the development of arrangements in the context of the integrated programme for commodities, and in other multilateral agreements affecting the imports of the least developed countries, every effort should be made to reduce the burden of import costs on these countries by means of appropriate differential and remedial measures within these arrangements.

C.

24.

Economic co-operation among developing countries

The developing countries in a position to do so should:

(a) Provide preferential treatment, as far as possible, to imports of

goods produced by the least developed countries;

(b) Assist the least developed countries to develop the production potentialities of food, energy and other resources, including manufactures;

D.

25.

(c)

77/MM(III)/49 page 41

Provide under preferential terms and conditions and at a minimum cost the results of seientific and technological development adapted to the development needs of the least developed countries;

(d) Provide increased flows of financial and technical assistance and
goods for the benefit of the least developed countries through special
preferential arrangements;

(e) Promote and expand joint ventures with the least developed
countries involving the transfer of equipment and technology in the
context of long-term bilateral agreements or special arrangements;
(f) Explore the possibilities of undertaking long-term arrangements
to assist least developed countries to achieve a reasonable level of
sales of their products.

Shipping and promotional freight rates

The governments of developed and developing countries should invite shipowners and liner conferences to establish freight tariffs for the least developed countries which will encourage and assist the expansion of the export trade of these countries, and to develop promotional rates for the non-traditional exports of the least developed countries which will facilitate the opening of new markets and the development of new trade flows. 26. The developed countries and the international financial institutions should give high priority to providing financial and technical assistance to the least developed countries to help them in acquiring and expanding their national merchant fleets and in improving their port facilities.

E.

2?.

Transfer of technology

The developed countries and competent international institutions should: (a) Assist the institutions of least developed countries to obtain, under preferential terms and conditions and at a minimum cost, the results of scientific and technological developments appropriate to their requirements;

(b) In order to overcome the technological and negotiating weaknesses of the countries, assist in the establishment of transfer of technology centres designed to obtain necessary technological information, to select from available alternatives and to negotiate proper terms and conditions for external collaboration;

77/MM(III)/49 page 42

F.

(c) Make arrangements for the grant of patented, patent-related and non-patented Lechnologies, including now-how, suited to the economic conditions of the least developed countries;

(d) Provide the necessary assistance for establishing institutions of applied technology, with the aim of developing indigenous technologies and promoting the adaptation of imported technologies to national requirements;

Other action by UNCTAD

28. The Secretary-General of UNCTAD should convene as soon as possible a special meeting at which multilateral and bilateral financial and technical assistance institutions can carry out, together with representatives of the least developed countries themselves, a general review and assessment of their requirements and progress and of the problems arising in the co-ordination and implementation of assistance programmes on both the donor and the recipient sides, with the aim of agreeing on a global plan for a much more rapid increase in growth and welfare in the least developed countries.

29.

The Secretary-General of UNCTAD should convene an expert group to study: (a) The implications of an integrated vertical approach for expanding the exports of the least developed countries, and involving co-ordinated efforts ranging from the planning and production stage in the least developed countries to the stage of ensuring sales of their products in the developed countries;

(b) The possibilities of providing long-term guarantees to the least
developed countries of a reasonable level of sales of their products
in the developed countries;

(c) The possibility of creating and developing institutions and
financing corporations in the developed countries as well as in the
least developed countries, specifically designed to promote the sale
of products of the least developed countries, including the development
of suitable guarantee arrangements by the developed countries concerned
to offset the risks of such trade.

77/MM(III)/49 page 43

30.

The Secretary-General of UNCTAD should:

(a) Strengthen the technical assistance activities of UNCTAD in
collaboration with UNDI' in the plauning and policies of the foreign
trade sector of the least developed countries and in other specific
areas within the competence of UNCTAD;

(b) Implement the work programme contained in "Issues for Consideration
by the Intergovernmental Group" (TD/B/AC.17/2) Part IV stressing also
the need of in-depth study of the circumstances of the individual least
developed countries;

III. Action on special measures in favour of developing island countries

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31. Several island countries need to trans-ship goods through other countries which are on world traffic routes. This involves extra cost and delay for both imports and exports; it can further cause difficulty in meeting export commitments, and is inhibiting the development of exports from affected island countries. Measures to facilitate trans-shipment, including, inter alia, appropriate storage and port facilities, are needed. Prevention of discrimination against island ships

32.

There are cases of island ships being discriminated against in transit ports or in the ports of trading partners. The governments concerned should

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33.

Measures necessary to ensure that break-bulk carriers plying between islands in a region are not discriminated against in obtaining insurance. Promotiona' freight rates

34. The governments of developed and developing countries should invite shipowners and liner conferences to establish freight rates for developing island countries which will encourage and assist in expanding the export and import trade of these countries, and to develop promotional rates for non-traditional exports and imports of developing island countries which will facilitate the opening of new markets and the development of new trade flows.

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Research on appropriate ship and shore facilities for archipelagic States 35. Archipelagic States often face the problem that their own outlying islands can be hindered by poor services from full participation in foreign trade. Special research and development efforts should be undertaken to evolve appropriate types of ship and shore facilities.

Co-operation with shipping conferences

36. It would be desirable to achieve better co-operation between the governments of island developing countries and shipping conferences in order at least to maintain a fair relationship between the pace of increase in freight rates and port congestion surcharges on the one hand and the level of economic development of the island countries concerned on the other.

Training for ship repair and maintenance

37, Assistance from UNCTAD, the regional commissions and other bilateral and multilateral organizations would be desirable in training the technical manpower needed for ship repair and maintenance and for marine insurance. Assistance in establishment of shipping services to promote regional Co-operation

38.

Assistance from UNCTAD and the regional commissions would be desirable in promoting sub-regional co-operation among developing countries and in particular island developing countries towards the establishment of consortia or international shipping companies to develop trade between these countries.

B. Air services

39.

Measures are desirable to improve the quality and cost of air services, including appropriate airport facilities. Archipelagic States often face the further problem that their own outlying islands can be hindered by poor services from full participation in foreign trade. This calls for advice on appropriate types of aircraft and ground facilities.

40.

It would be desirable to achieve better co-operation between the governments of island developing countries and airlines in order at least to maintain a fair relationship between the pace of increase in freight rates and fares on the one hand and the level of economic development of the island countries on the other.

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