1953_Report of Basic Agreements EEC

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    ( ulrDERSECrrOlrls(K'

    .OF rHE EGOTOMIGGOOPERATIOACt oF 19f8,

    s!. -t - - -l f - pRoDucrrvrryND Et_.. . .----= OFFICEOF THE SPECTffilTt FARI5 Fr(Ar\LE Ju\-r -l- .-

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    I have the honor to refer to the conversatlhave recently taken place between representativesGover::ments relating to the Eeonornic Co-operationsignecL at London on the 6tn .luly, 19L8, ancl toof the Mutr:al Sdcurity Act of 1952 ayneniiing Seethe Econornic Go-operation Aet of f948. f havehonor to confirm the und.erstanfings set out belobeen reacheil. as a resul-t of these conversations.1. Itre Govercment of the Un:itecl Kingclom of GrNorthern lreland agree that the establLshnent oe:qgancling econonry eapabJ-e of providling a progessin living stand.arcls is essentia-l to the clevololx' security a.nd. of the lndividual. and eollective dfree world.e and they bel-ieve that a eoneretc Brcar"ried- out in the Unltecl Ki4gclon pursuant to tof Section 115 (t

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    JoJ SSSJnOCpuB saT+TsJe.&Jo uolqmord(o)pau.reetqsT+T.jlgseT+TsJea.Trm.rt1e8":etr qnooq peiCold

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    Jo uElsep .des.es1.:d,re1ueeq+ prrPxo .6.aqsnPu1tg+Fa Teep

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    :oJeunsuoc er{+ Jo prm pe"{oXdma pue s"re{oldrreoq+ o+ suoT+Tpuoc eaT+T+eduoo .d11n;: .reprr-uT qsT+T.rg JoJ eseu8u;tr1ta pua ,f1;6qe oo1 pauEleetr) +no pe{.norn eq tl,ee sXoofo.rd speeq Jo Jequmrr e Jo s+sTsuoo eunsra$o.rd oq64uenbasqns uT p&+?aTpuT a*Te sma+T .selrra;peJo se+srT+sg "s.:eeeJ aeJr{+ Jo o.ra+ lrr{+r.n+T Jo {Tne[ or{+ +q+ sTsq oq+ uo peuueXd-eod se uoos s +ooJJa o1u3 lnd aq TTTtr

    "JTepe.xedelrd eq dlguenbesc1ns TTT-arns+sop.rg pli*qe .;o dxlsrtpug JroJ secTa"res Jo T:oT+T+Trro s+cc"E+Troa p"Eueso.x' 6eagpngs .rfqls.re.aTrro aJn+Tpuad-e TTaroJ-ocuo JoJ TTBo p.reil.roJo euos 6snqg, "s+r{BTOrt dleu o+ rroT+cnpcJd.o1 ,(rlenpuT oTqus o+ s 6.moqT pr"rE +ueErreea+eq uog+a eagle;radose "noJ opSao.tds+T esTJ o1 luaiae8eJnootro rkgsnpug oag-ard 1eqre.s{u o+ 6asod.rnc srq+ JoJ ,(ressaeeo+ JTes+T dleq rrec .(r4snprrr t1cTqtr "r(q sacla-ronr +sTsse o+ +uautr"re.&o3Jo {+;T;qTsuodsa.r eqe.re sTesodord esoql desg.rdxo+ue a+aT.rd uo n

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    areassist ia5-tseLf topro-to

    some ofonorof apreparccl

    aS pog-sf itofheadstoln-to theconsuoer"

    teeh-of re-irr thecon-theindustry"a

    th:eoo

    wouLd.

    cleal- gi.thr axnong other thingse such matters asindustry or agrieulture, the effects of restriatiand. the rel-ative efficienclr of corpetitive and.enterprise. The prograrnme woul-d. range from msay ciesign of maehine controLs and industrialor researctr into the sociotr-ogy and. sosial psychrelationshi-ps between erryloyer, nanagernent, andplrre economic d.eso.itrrtive, statisti-cal- ancl theofor instance, the stnicture of in&:stry alcl thepraetice of trad.e assoc5.ati-ons, trad.e unions aSpeeial eryh^asis nouLd be given to appLied resesubjects, It wogld., j-t j-s hoped., provicl.e infornr:nber: of points toueb:ing the attitr-rde of erpJ-ployed. to higher production, Such a pr:granmeout largely r:nd.er contraet by vari.ous bodies,r:niversities and. eeononic sr sociologica-1- instiiuBnitish Institute of Mana.gement and. other profeleawred. bod.ies "

    (o) @" fhi-s proposapnonot5-on of stua:-es in technoS.ogical subjeetsversities ancl. tec*rnica.L eoLl-egesr the tral-nj-ngcoutrses for superwisorse ttre trx'ovision of sehoclludl.lng sc*rolars}ips for trad.e r:nj-on:istse in mjocts. Part of this proposal" miglrt take the trj.bution by endowment to the build.ing up, receby the C'ovey::ment of the U"Ko of at least oneuniversity nank devoteii predom-tnanttry to the testudlr of tUe various forme of technolory, and"to produeti.on procsssos. These pnoiects wouldto f:-ft the gap between industrial- and agricul-tuanct its pn*e{ic*t appl-leation in the fa.ctoly swoul-d. enabl-e toartagertent and. labour to ga5-11 l1methods d.es5-gnecl o increase productivity"

    Estinpted. e4rend.iti..rre in restrrcct of .(p) *periodl" of three ye*rs an4 ln respect of (c) abperioit of two to thnee yea.rs' of counterpart fi1/ t"o r.)

    (a) Pgbligibt. It is proposed to givewiete publtcffi- erapfrasising the eonty'ibution it

    -141-

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    l:edsqurogedepprre sXcefqns"t

    spoprad+s@ pTnolaasoql Eumeegcedg"uI 5'o$w (E)ped.re+unoce+@rT+sgeq+1.red s11 .fia1dJ (+)

    ' ("* O'T/).r(gal1anpo.:dpuB +T urqlJep@l eq pTnoll'suoT+pufllttr@ouT esoq+ sEe8pgpl,orq eq+oasq o+

    pesaJcuT8u1so@rfc o+,(tp.lo+ .ropro {'r.rsrrBoT aseq+sp.rep.&ouooasacT;d .rello1o+ pesnt{cTtt tr sulJe+'t

    oq ., c o lu.rauaE o ac .r p ouro.z;:saTpoq sq+ Jo 6o.aT+Bluaso*da.r s +s Ga-ras .*eaartoq cplnoru.s.roqlrartrorf,I oTq6T+p.rg eq1 q?no.rq4 rftq-rssod esse.rftrotrnre s.rs.m+oeJrrurefl{Jo uoTr.rg TsuoT+ENeq+ .Jo uoT+EJepefi eq+ ce ,{rlsrrpuT Jo sops-eroglezlrnaE.ro 1uuol+su r{ans uro.r.;i e+ceTesesod-rnd +eq+ JoJ pe+Eo..p eq. o+ sea++Tusior:ea18 eq pTno/r rs.oTeq d) Ude*awed-qns rrT ooq+ uo ecTApe pTrnJ oq+ Jo uoT+B.r+sTuTu.e1q18;1a ecl osTE pTno& sic3o ftig1a4-reur pu uoT+nqTJ+sTp -ro.;;s4cafo.rsE qcns .sa11ddns T.rn+IncT.l8e pue s.l:JT-sTp pus ds-rossoco.rd ssJacnpo"{d .1aoq (eo+ p..EreJeJ sJsT.apB q+ Jo .ro s1..roda.: Scueq+ Jo suoT+BpueuruoceJeq+ lno .&r.rea o+ peseq+ sasEc e1e1:do:d&e rrg .+trsTd Jo uoT+E-dgnbe .:o; .f.rlsnpnT o+ sT:BoTw.ra+-+Joqs .roJ p.E g.a$ Jo punJ:Eulaloae.r e dn 1es o4 pasodo' f f i (n)" (.v gLTryt) .rE E"O$ sroJJ spnnJ pree.rq+ o+ oar+gro pog.:ed e 8u1.rnp a.rnllpuad

    '.d11e..reue8cglqnd eq+ pr:E 6o+ eTq?TT.aapu aq .atrqecgldde .d11e.se3os1e pTnoe oAoqe (e) Qde*8erad-qns uT o+ pa.EJe s+TnseJ aELtr .slcofqns uesotfa dllnga.reuT epetr aq 1q8.rlt suTT.I raT{+JnJ Jo .neqFilrd13:rnaeg Ten+nfi aq+ lCq.palgddns uaoq aaEugpnlorrg .serTTJ TerroT+orla+suTJo co.leqaosge .s11et1 otlqnd .sa1*o1ce; wr Suuaoq.roJ ep@ eq. pfno$ s4uaure8ue.rne6sanrrg a3s.moc uoT+cnpa prre ftrTuTe.x+ sT{+Jorn8ledrec 4flcftqnd eq+ Jo X.xede sy ".{*Xstreq+ q+T!r ts+TqTlpra .;o Eupuoqs aq+ .ro;o uo1lez5ue8;ro eq+ 3q. pTrlronpoq+eu oAT+Z pirc 1 sqde.r8e.red oq+ uT pe++s saa.31cef,qo

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    L ancl 2ofcarqraigntin

    atincl-udi.ngi-nofalsorto

    three

    of $2.8 m,for equip-theseof the toanci di s-asd

    thebe givenpurposeof and.

    &sfremwould bc

    t. Ihe fwrd. would. be adninistered in ate us whictr worrld. p:r,ovide, inter alia, that Lgsed to i-ncrease production ana proauctivity,lower priees to @nsurners, so as tO pronote aecnnory capable of provid:ing a progressive ineilard.s of fiving" ihe iraportance woulcL be strtbese loans avai-Lab1e to smal-L ancl medium-sizecin o:dez' to increase the ability of indr:stlyful1y coryetitive conditions: 54rortance'worrld.to clreosine sound. fj-ms 1ike1y to be able toincreased produetion, and to ttre necessity, ifto have thLlr naxisgm utility, of provii!.ing rthe loowted.ge and ex;perience gaineil in suitableas those in which the money was spent on impxcomendations of a productivity repozt or ofwould be made available to otbers in a positionf:nom it aId. whereby the results aehieveci throuproductivS.ty cotrld be equitably sharecl'

    Estinated. errpend-iture of cor:nterlpart fi:n($..O ra'). tuo plrioa has been set for this(f) The Government of the U.K" rriil beptay its part i_n a. producticity agenc1r to beif.i O"g*nization for n'ropean Econsmic CooperEstimaiecl ercpencllture duriing a period. of threecor:nterpart fund,s rren $0;?i m.- (t/o.254 m.)(s) The balance of the counterpart firn

    $O.9 ;; ' (ylO.3Z1"m.) wttL be 6istnibuteil, in a3peci.a.I }iission to the U.K. of tbe Mutual Se"*ong those projects w"ithin the above progra]IwouliL mst effeet:vety be usecl for. expenclitr:reperiocls iniLicated. in ths atrrpropriate sub-parag

    ,l+" Sinee the foregoing progra$me coversubjccts a'd. involv*r * intt iclerable nr:slberdepi:rtnents, ttre various aetivities wiLL be"ri irrt""-tiepartmentaL Comaittee" ttris Cororwith the cluty of see33g that the fun.s aLLottoottr.**ty *itu the programne set out aboveosubsequenttry agreed. between us, for giving g

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    s q+Tiaq+ Jo punlJo sel+sglo [email protected] "z

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    o?ertracl o+ s+uu+oTT xTTo? Jo SuTuT+ pu

    +uoumroJtoc eq+ ?u cTrerrv Jo so++s pa+Tlrnuaaalleq luaueac8e .fq peugu;ra+sp oq TTqeq+ urorg srroT uo ro+Jxoq+ on.rcc .feu q?u ledlculaci g:o s1uou.feel .f,ue 8u1pn1cu1g:o lesoctslp 6prmg:ueol Sul.,rfolo"r oq1 8ugpnpoJf,aJex eumea8occt o lcepo.rd e go uoT$rr'vuoTssT!{ legcadg eq+ q+T,tauoT++Tnsuoc uT ue4lueueuced .fue go slcefqo q+ o+ s ptre 'eunnexq+o oq+ rapun aanllpuedxa Jo seT;o8e.epeu eq rtllelgTTrT pTnor* GtIroT cTqreuT a.rn+seTr+snpuT aq+ o+ s uoTeTcsp aq+ +q+ poo+s

    rseaeTqc +T +qe Jo poitrf,oJ:u1 d11n3:pue .rflcepr8eunrea8ord oq+ .ropun ssaaSo.rd 3:o sgcodeJ cT?.X.fI eq+ o+ uoTssTffi lelcedg _oqq. ?TAo.rd o1 e-re+uT eq+ 3:o lroT+ctmJ eq. osT tTpa +Jo (p) qder8eced-qns uT o+ perra;;e{ euneaSpue'e Furuuelci ?itr$roJi 1no Eupftitc xo; eAqder8e.red-qns suoT q+ Jo

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    (d.) ofe inter-the U.K.the prografiuneshat it achieves.tb.e industries

    be madetotherpermanentMissionreferred-d.isposal ofand.from the

    betweenGovernmentbe mad.ecounter-proccduralwhich

    tbisup-fbey uril1witlcst

    that theof the

    AItfHffi1. ?he Goverzment of the Unitedl States 'siil-to the Ulritecl Kingdon GovemmeRt iluring the llyear L953 to carrxr out the tersrs of t[is note,wlth estabLisbed proeedures for the aLlotnentassistanee under the MutuaL security Aet of 1These dolLars urill- be avail-abl-e for general pment r:nder the eetablishecL Procurement Authorigoverning the expenditure of other dol-l-ar assavaiLablJ by the lini.ted. states Government und

    The above sr.m wi]-l- be aLl-otted as follows:(") At the date of the signature of th

    (u) fhree rcnths after the de'te of thenote: $J,28 miL1j.on"

    Itr" the J-ocaL eurrency equivaS'enthe d.o1l-ar al-Loturents rnsde in accordanee w'ith

    (") upqn the Govqrnnent of the united.a party to the productivity ageney1ishe{ by the Orgariisation for Er'rCooperation providecL that such agelj-shed.: $72 niLLion"2o The Government of the Uniteci. Kingclom agrcurrency coq.ter?art deposi.ts made by them Ehrccord.alr"e with ilre provision of Artiele fV ocooperation Agreemerrt b"t***n the Gover:nmentsr1nlaor of Great Britain and Northerxr lrel-sndStaies of Aqeriea of the 5th .lrrLy, 19t+8s as tfr.ulcl. of the afore mentioned d.olLar assistancewlth as fo]-lows:

    (") I" On the initial allotment of tto in paragraph 1 above, a separate Unrj.ted. Stfr:na wiLl be estabLishede to wtrich u,Ll-l- be traetrrrencTr equivalent to 9O per cent of the saLclol-l-ar alLotraents .

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    uI. ecTrwoacecq+ Jo +Ec6agog egqg

    *9?1"

    qlT-rd,scupJoaae ug 6papuedxa spunl Jo +utxc" (a) r4de.fe*ed-qns q+T&l eoTrepuooceliEur o+"pesn eq esE&oriTT TTTA. flrl{toT qJns qonJooe fht rtrcgqri, s8rr.nlree +seJeSuT 1ou ,ftreurorJ epu sueoT uo slueul,{ed .f,rry '0+06 sTtIJo (e) qdra$e*ed-qns tr1.re1ncT+ed 3stiueplocc trT epu eq TTst{s pun; Eugn1ortax, TBT+FrF eq6' . eaoq (Z) Ude.r8wed ;o (c) tdepe.LroJeJ 'IffinJ uop8uly palgu6u/sa4e+S pe+Tugs?rmrI TT+TrTT s+T arrp TTT& esroN 6Tq+ Jo {qdra.r8e.red-qns uT o+ palreJa.r jpw.rg: treo1 8

    eq+ orr spTr*red.raiurrooo ;:Sit3f#ilH:pcrlsTTq+sa q+TrLecuspaooce u; eun:,c.ferduoT?aer.ruoc rE saT+t1tq;suodseJ ertq qcTr{o1 .d1uo epu eq ITe,I"{sptmg uop3rgy polgleScads qcns utoJJ sptrr; 1;red*ralunoc J:o se.uo18u;X po+Ttrg eq+ Jo +uoultuio^og eq+ Jo sae.ro +rmoace ped;eqrnroo leec .rad 06 TBJaueB

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    (a) of thisTechni-ealyear

    actualor

    specialtofrom thc

    referredhe initia1') ofrade from

    acqrueto rnake

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    cggo

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    66T 6(7 .Crcnrqe6

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    5s 1953

    rsferbotwccnEco-July,

    aigbt

    fHE SECTTON 15(k) ACREHfimTT'-WrTHE ORCANIZATIONFOR

    IUAOpBNSE0ONOMICC00PERAIfsE ESTAELTSHMENT F A SITROPEANRi0DUOTIV

    ( In*ex of contents)

    O3'ECDoenraer:t C(53)8f (as anend'ed.) dated.being the d.e.cision to establi'sh the Suroductivity Agency.pas

    Letter, dated June 1l' 7913' fron Mr" WDeputy }irector for Economic Aff:air'sr gfSpecial Representative in Eurotri,ee MSAr tMarjolin, Secretary-Genera,l of the ffiffi,tbe tra,nsfer by the United Sta.tes t.o t'he$2.5 miltj-on for the purpos.es of the Surductivity Agency,pege

    c. Letter, d-ated. une l l r I9r3, from Mr," Mathe

    A.

    B.

    Mr" Batt ,conditlons acknowledging and. acceptingof Mr. Batt !s l-etter. .

    D.page

    OE'EC ocurnent C(l l ) f f : (Finat) dated. Ju:re.concerning the financing of the E\rropeanAgencyfpage

    xThc ArulexSee Table toII thi.s document has noti:r thc trntroiluoti.on"

    - 1"49

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    '-uou rIloJJ suoT+nqTtrquoc ldeco o+ pszTroeq+ +q+. pue leFpnq le.raue8 s+T utorJeq+ JoJ 1.:oddns uT+Jap qsTu.rrrg o1 sa-1ue8.r6 eq+ +q+ 'eaoqe pe+ou se,rllcefiqof.rauc o1 rfcue8y oq+ o+ OOO(OOE3IS?unqce;r 11rai padoq sT +T qcTqrr (suo11nq1rseTJ+unoc raqwag 1eq1 8u1pu+sJopun raqIT roJ 8upr,11 Jo p-.moes ?u 6qgFue.r4s cgnbuoce aelea.r8 8uSurlueu8ne Jo sueu s o;r +q+ u1 ,f1-uT eq+ .rog: ue.r8o.rd e edo;ns uT 8u11ca;u1 d'rqs;ropeT errT+c errrnss o+ sT ,tcue

    -Jepun .du s1 11 ."rfcua8y oq+ o+ s?unJ olnqTsr sa++S pe+Tu1 aq+ qcTgir o+ +unsr qcTq& tpepueue se .'f.e5t Jo +cv rfll1e)f r6 uor+ces ?u 'pepuewe se- tgt6toTluouocg aq+ Jo (q)(t t uoT+csg 6-,f1aurpe+Tun pe+Te.r aq+ Jo se.rr l1cafqo ?uTTTildpu q+Tr\t +ua+sTsuoc slcadsoJ TJo seT+TTrqlsuodsar ?u 6suollcung: 6s;rao

    -repun rno sT +T (,t18u1p.roccy .t66t tGt(E)C +uaumcop uT r{+roJ +es esosaT+TTTq.Tsuodsa.r ?u suoT+cung ds.rarvrod se-pu+sJopun rfin sT +I .rtcua8y ,f11a11cnpo;r-3ue8.r6 oq+ Jo Tor+uoc lecrgrlod pue ,f'te6'r. tT ,tew Jo s uoT+zTue8*6 aq1peuTwxa+ap .t55t r(7 qc.re4 uo uoT+rado

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    1953.

    for\953tOrgani-und.erstand_-

    C(f:)our und-er-ofwillUnited.

    is1sis my und.er-inthe in-

    and secllr-

    reachcarryhe Organi-thethenon-

    2. As you may know, Sect ion 115(k)(2) ofoperat ion Act of J.948, as amended, authorizefor Mutual Security to transfer a sum not fi2'r5OQr0O0 to the Organization for Europeanoperat ion to be used on terms and. cond-it ionby the Director, in order to promote the'obSect ion 5t6(a) of the Mutual Security Act oa^mended. Or behalf of the Director, I am ainform you that, in the light of the formattwith the object ives noted aboveo the Unj. tedment is prepared. to trensfer to the Organizexcluqlve use of the Agency, up to $2r50OrOfollowtng terms and. conditions:(A) flhe Agency wilL use the fund.s so transfwitb the provisions of the decision ofbod.ied. in O.E.E.C. d.ocument C(53)81, a

    1953.(n) blember countr ies of the Organizat ion sfor the use of the Agency and. withoutthan those speci f ied. in C(l f )Bf , as amL953r currencies of which, without furtagreement, a port ion equivalent to thed.ollar contribution may be freely transcountry within E.P.U. monetary area.(C) The contr ibut ions of the United. Statescountr ies under (a) ana ( l) shall so fbe used to support a programme of appryeaxs t durat ion.( l ) These contr i-but ions by the Unitet i Statcountr ies shall be used. in part to carvlty projects in the f ield of food and(g) The funds he1d.

    the Agency willthe Organizat i-on for

    treated. as internatiowill be held. in such manner so that sunot be subject to garni-shment, attachmbtber legaI process by any person, f irmtion, brganizat ion or government.

    bybe

    -159-

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    '.

    -,+ ( rr)

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    .saq+ Jo ecuo.r;ncuoc aorad +nog+rtr apurfcua.Sy oq+ oX acu+sTss se++S pe+Tun g8u1;rnp epur sr 1eq1 rfcua8y aq+ Jo suoT+c-.rnd aq1 Eut"rfg:tporrr oTsTCo? ,f,ue 1eq1 slcadxasa++S pa+Tug aq+ 6acusnbesuoc uI .papJo +cy uorqe:radooC cTrtrouocg er{+ Jo (q)6ffpapuou s T(dT Jo +cV rflurnceg Tn+nli[ ouoT+ceg 8u1pn1cur 6s1ueu1cua pa+elar aq+ uTse++S ?e+TuII aq+ Jo ssa.r8uog eq+ Jo suor+ue.{11u.rog;uoc uT r;a{1 aq 6se1+S po+Tu1} oq+ JouSlaaog oqq, Jo ecuJoq+rnJ uT +uamrralropsuoT+c Jor{+o ff o{TI .1snu .f,cue8y .f1r.r1-oJng aq1 8u11srss ur +uaruureAog so++S psuoT+c eq+ pu par;rcads /dou s ,fcue8y or{+pu srrJa+ aq+ uo pesq Je .ra++oT sTr-xa +uauuraaoC sa+e+S po+Tug oq+ Jo su

    .sa11rlde 1.rode.r.rea.,f lecsTJ ar{+ Jo uoT+uTrr.re+ arl+ Jo+J. pue poJpunq auo uTq+Till +uortruJoAoc so++o+ papJr!\JoJ eq 11prri l.rodal T{cns.+T ,fq. pEulqrmocc'e cflqnd e ,fq paTJT+Jec pu uoT+

    Jo seJnpaco.rd SurlTpn eq+ Jopun sTseqpaplao.rd oq Tfqs 1.roda;r TTcuurJ olTfcuesy eq+ Jo saT+T,rT+c eq++uoJ.rnc uo uoT+luJoJuT Jo +ueuruJo^oc seq+ o+ uoTsTlo;rd eq1 JoJ s+ueue8ue;r.re aosT 11tar' fcue8y aq,I .l!d!or^o.r Japun .re1.renseT+TllT+c [TcuurJ s+T Jo sTT+ep eq+ pu

    saT+TrlT+ce aq+ Surqr.zcsap +ueuruJalo9 saq+ pepTlo*d aq TTqs srsq ,f1:a1;renb

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    toand-year

    act ionsEuro-

    SectionAet ofthe pur-

    duringAgency

    thebe-hereund-er

    necessaryamong thein

    'graph (f ) ( i t ) lol-owt, a-ncl-any furtherremai-ning in the account shatrl reverUnited. States"(ii) ar\y arnount remaining f'rom funds conmember countr ies (as referred to inZ(l) above) sha11 revert to the restr ibut ing countr ies to be expendedwith the provisions of the agreemen

    to aid. furnished pursuant to Sectionthe Mutua1 Security Act of 7-95l-t as(f ) Tb.e d"ol lar contr ibut ion of the Unj.ted. Stnade available under the fol lowing proce

    (f) Tbe Secretary*General of the OEECto tbe Mutual Security Agency thatProd.uctivity Agency has been estabreo-uest issuanceo pr ior to "June lOfechnical Assistance Authorizat i on

    (i l) Upon cert j , f icat ion by the Secretarythe 0EEC that nlember countries of' ' have cornmitted themselves to contr. unrestr icted. use in aecordance with. amend.ed June lln 19518 currenciesfu11y transferred- 'to any cot*"ltry wrnonetary area in .any amoulj.t at leato 6.ny contr ibut ion requested. of tthe United- States wi l l f ron "r ime tSOtb June, 1953n d-eposi t in a spec

    - - j -OJL -

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    l oAq Is Jo++aT

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    ar{+ JoI'" tTS

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    paleu8lsap aq. Ifeqs s {uq .rf;rolrsodap qcns ueT{+ Jo srunJi .zo;l f1a1os pauT+uru uor+z1uJo +unocce lelceds o+ porJaJsuJ+ aq 11's'a,ra1 aloq aq+ uT uor+ecTJr+Jac 3ro ldra" sppu suoTle8tlqo .sluaulrruuroc ydg +uaJ+aaol o+ pa.:1nbe;r ar polsenba.r sptm;

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    url{ .+Fe aJ}UttoC ,fue oq pa;rr6Jsue.r1 .f11ng:,(eru qctqn 6sa1.r1rmoc .requau .,fq palnqll+uspunJ ar{+ urorJ seJn+Tpuadxa 1en1ce OOO.uq+ eJrou ,tq paacxa +ou op (uorlsanb+uoutflsuT eq+ Surpnlcur) +rrnocce .rf.rnssa++S pe+Tun aq+ urorJ sTrrrpr{+T&\I.ra++aT sTq+ Jo (qde.r8e.:ed qlpn flluJoJuoc ur aJ qcTq.n ,(cuaq+ Jo la8pnq pue uie.rSo,rrleq1 ur pepnlcuTqcTqf' sasod*nd ;rog: r(1e1os .pasn aq. o+ eJ sp

    :+q+ uo11aq+ Jo rocTJJo BezrJoq+ne .f1np e .{q uorlecuodn gggg .fq apeu aq rfeu qca OOOTOSZ$+ou s+u3rltT+suTuT +unocc slq+ uorJ sT.0O0.00E,e$ Jo T+o+ e Sulpaecou uT 1nq suotlnqTJ+uoo pelsenbe"r qcnssJfTop Jo suns .ro uns e fcue8g oq+ $o asnuoT+zTu8.r6 aq1 Jo ortru aq+ uT +unocc

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    f d-ol larsi-n no

    notof the

    whichof tbeparagraph

    funos

    r0eet

    terms,ofof the

    applicableshould.convenience,

    Affalrs

    l j tL

    of theEuropeThe Eonourable Wil l j -an t. Batt ,The Acting Deputy for Economic AffairsUnited" States Special Representat ive inParis

    fhe Councilhas, by the termson behalf of theletter as wel l as

    Sir ,I have tbe honour to acknowledge herewith,of the Organizat ion for European Economic Cooreceipt of your letter of 15th June, Ig53t contransfer to the Organiaation for the excl,usiveEuropean Productivity Agency of 2r5O0r0OO U.S.the terms and cond-it ions set out therein.This tetter was, as you are aware, consid

    Counci l of the Organizat ion at i ts meeting heand in pursuance thereof the Council ad-optedconcerning the Flnanci-ng of the European Prod,Agency, a copy of whi-cb I beg to enclose herewwelcomed the proposals made bof th is Decision, instructed-Organizat ion, the offer contathe terms and condit ions lal

    I have the honour to ber Sir tYour obedie

    /"/ Robert MarSecretary-G

    -153-

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    - igt-

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    .8ur1aetr'+sre"{[tf: .;H{";-:l*"?oICNUCV&Ir^rll00 oud llygcroun

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    q+ JoJ uoT+suorsTceo sTql(") 'zaql JoJ

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    eq o+ suoT+o1 poAfosoJuodn pslTco s1 iueaSo.rd acuuTJ

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    24thof a the5(a)

    thetheandof anconvert i-

    reso ve to part c pate in its,flinancing ,throut ions to be mad.e rom the assets of the 0rganiRecognizing that i t is d.esirabLe that theshould. not be less than the expend.iture authorOrganisation und.er the head.ing of prod.uctivityf iscal- year I)J?-L}JJir l fsrRUCTS the secretary-General to acceptthe organi"sat iono the offer contalned. in the sthe united. states speoial Reprgsentat ive in Euas the terms and cond.it ions laio d.own n it ;DECIIES I1- The Bud.get of the organisat ion for thYear 1951-l{ shal1 contain an allocat ion of 15French francs to be mad.e rom the assets of t lefor the purposes of the Agency"

    . 2- (r) The Member co'ntr ies r- lsted. in tthis Decision shall nake speeial contr ibut ionssation for th.e Agency whi_eh shall be equal to:( i ) th.e amounts ind. icated, in thMember countr ies which shallpayments as soon as the Decinto forcel or(ti) B/" of the Counterpart Funclsapplicat lon of Agreements ethis purpose with the Unite

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    1t g:o uo11.rodu 6eqeFe;r88eluew,fed

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    "+uail luro^oo se++s pe-su.r l . f11etcr3:.3:CIq IT"qs 6aa111utloC oq+ITail! s 6s1:oda.r aser{fr "rrraTAal Jspun *eq;re-TAT+c aq+ uo sl.rcda;r . . f1":a1:enb ae++Tuntro3,fltarlcnpo.rd eg+ o+ +ruqns flqs le.rauag--f;+

    "956t 6ermloti Fu;leuTulra+ ;o pol.red e 8ug.:np parrncuT-lpuadxe JoJ apTao.rd 11eqs pue -fcua8y oq+ "itue3"r6 eq+ Jo s+ass? lelcads 3T{+01 opusTq+ o+ eTqueaJd aq+ uT o+ poJJeJe;[ 6luauu"aq+ urorJ uoT+nqTr+uoc ag+ q+Tffr req1e8o1 ', ")uT JoJ paplaotd suoT+nqTJ+uoo fTceds pue s

    slq+ .Iepun xeuuY +q+ o+ epu eq o+ uoT+TppeiuJoJuT IIqs eH "JoeJoq+ uo11;rodo.zd a1qe.:e3:ss1t Fu11e1s 6uo11nq1;r+uoc Irceds e a{u o+rrrTr{srrrJoJuT qcTq/4 ,f.r1unoc &oquaw Jaq+o ,tue 3sTq+ o+ :ceuTrvaq+ o+ pp Tr"qs 1e.reue3-,fJ'.rf.l1unoc Jequeff Jeq+ou 3:o -f,cue.:"rnceq+11u.red o1 ae.rFe feru ,f;rlunoc +q+ s J?JOsuT e8u11nqtJ+uoc aq+ Jo ,tcua.r"rnc eq+ uT -(1a1os p"soTJ+unoc Jaque}tr8ur1nq1a1uoc eql pu uor+espea.rSe eq o1 seldrcul.rd 1e*aua8 q+T^{ aouepg:o sesod.rnd e1ern1118a1 11e JoJ T.reuap-,t;re-srurrrp aq TIqs (q) qde.rge.red-qns Jo suorsTa+ou suoT+nq-Tr+uoc lt lcads sq1 Jo uo;X'zod

    ueado.:ng or{+ J0 ea"re ,f.releuoia er{+ uTq+T/r .(*1-suJ+ ,fTTnJ ,fcua;r*nc e u1 6,(es o1 sT +r{+ drfcuT epu aq TTqs prTql-euo uq+ ssaT +ou 6(.roJ peprrro.rd suollnqTJ+uoc lelcads aq+ Jo r{a

    "pellsodep eJ sPtmg lred-Ja+unoc pTs eT{+ s uoos se sluaturted *1eq1

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    ons nooe aclm]-n]-s-purposes ofto be agreeocountr ies"e contr ibut ingagree to permitcountry.to tb.isinforms himstat ing i tsHe shal1 informunder. this

    for infrorn theto thisthe Organi--for expenai-not

    Prod.uctivityon the act ivi--as lvel1rr : rrnc-

    e A.gency tbebetbemseLves

    - t57-

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    The EonourabLe tincolnMSA Special f f i ission toAmerican EmbassyLondon W" 1, England"Dear Mr" Gord.on:

    Gordontbe United. Kingd.om

    (,) t,\ ' '

    conversat ions have recently taken plact ives of our two Governments relatJ-ng to' thet ion Agreement signed-'at Lold.on on tbe 5tnamended., and to Section p(c) of the Mutual1952, amend.i.ng ect lon L1l of the Eeonomie1948' r now write to confirln on behalf ofthe uni.ted. Kingd"om of Great Sritain and Norund.erstand-ings set out below, which have beresult of these conversat ions,tr' The Government of the united. KJ-ngment of the united. states of America considecamied out in the uganda Protectorate and.

    -pri_!_!ph terr.it-g_qies-to wtrich said. Economicment extends, pursuant to the provisions ofof the Economic Cooperat ion Act of I)eB, assect ion 5r6(a) of tbe Mutual security Act omay n4d

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    - Z,LT

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    eTqTBTTa eq osT TTT,n s+cnpord,,r ."'il -g.6t .;o Eu-n4e4"raupue uoT+nqT.E+sTp.ro,,'' . ,, 't pr:e dstesTTT+JeJ sE qens dsaglddns p-mi -."u":5d:il*"-n"*g#-*"rr+:.:= o;r sosl.rdre+ue Jo suIJTJrrucrrJrv o+ $\ :.^ -+ror{s roJ Besn eq TTTlrt' "rm# rreol Eu.t.\ '\aq+ \f , iL

    (p)

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    in each

    of aiclorL above.the

    ,/ tfor eouip;.45'pro- {'

    ( +'(>

    . . .caseE wil l be mad.eavailable to otheto benefit from it and. whereby the rthrougb higher prod-uctivity can bearnong all elenents of the community(a) Aonowers who receive loans from thefund.s wil l be furnished. witb the tecnecessary to the best use of the bo' technical assistanee wil l therefore

    ment of the object ives cited. in theparagraphs of this letter and. at the\ the ability of the borrowers to repa'\, rowed. so tbat they will again becom' ' loans td -ir thers.4" The Governnent of the United. Kingd.omSpecial Mission to the United. Kingd.om of the.A.gencywitb quarterly reports to be rend.eredd.ays after the end of each quarte:i on the en

    revolving loan fund. in each.territory so thaof the United. States may be regulanly and. futbe status, .operations, and acbiev"ements ofloan fund.s until such time as the GovernmenStates shalL ind. ica,te their d-esire to terminof the said quarterly reports"5. The d.ecision as to the industr ies oragricul-ture in wbich loans will originally btaken in consultat lon with the Special MissiKingd.oxr of the Mutual Seeurity Agency" Periowill 'be held. by representatives of the GoveUnLted. Kingdour with representat ives of the Stbe United Kingd.om of the Mutual Security Agthe operat ions of the.revolving loan funds uae it may be agreed- between the two Governmsuch meetings"

    -u3-

    and. ...,,,i4"

    the ,firacl"

    lnaaclcon-eapableof

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    thereforei:r each

    of aitlor1 above.wlth the

    -,.)for equiB;,Ej'pro- *.,

    .cases wil l be mad.eavailable to othto benefit fiom id and. whereby thethrougb higher prod.uctivlty can beanong all elenents of the communityBorrowers who receive loans from thfund.s wil l be furnished. with the tenecessary to the best use of tbe botechnical assistanee wil l thereforement of the objeot i .ves cited. in thepa.ragraphs of this letter and at th.the ability of the borrowers to reprowed. so that they will again becomloans td others.

    4" fhe Government of the United. Kingd.oSpecial lrrTisiep to the United. Kingd.om of thAgency witb quarterly reports to be rend.ered.ays after the end of each quarte:i on the erevolving loan fund" in each territory so thof the United. States may be regulanly and. ftbe status, .operations, and achievements ofloan fund.s until such time as the GovernmeStates shall- ind. ieate tbeir d-esi.re to termiof the eaid. quarterly reports,

    5; The d.ecision as to the ind.ustr ies oagriculture in whiob loans will originally{aken in consultat ion with the Special trdisKtngd.om of the Mutual Security Agency, Perwil l 'be he1d. by representat i-ves of the GovUnited. Kingd.om with representatives of thethe Uaited. Kingdon of the Mutual Security Athe operations of the revolving loan fundeas i.t may be agreed. between the two Governmsucb. meetings"*u3-

    (a)irE +'

    \II ' 1'r ;' t r

    and.agrl- -f.'-sill- beb5r the

    ,..ftrnd"ln

    nter_gEg"to con-eapableof

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    oq+ uopEuTx?a+Tuo+unoltr eq+peaTece.rraq+TeupaATacar

    s+usrueq+q+68ureqspunJ uoT

    IT + TIT,)qcTqn spunJf qdec8e.rededocs aq1g+T.t'l ecllB

    qcns q+Tri+eu fire pue(f)(")pe+Tuo

    f qde.r8

    . e^oquT peer8epoiTun)

    fLT -. . re+

    sTq+ q+T& ecup;occ rrT s.r11op 8u11ouo18u1qsetr6u3 "f,cua8y fllanoeg Tn+nm euorJ re++aT TrtrroJ eq+ uT pelg:1cads 'oq tTspunJ Jo JeJsu.I+ qcns Jo +unou ?u o+oq$ .+ueur+oTTtsTs sq+ Jo /oo6 o+ +-ealnbe l(oueaanc TcoT sq+ pol;eJ:sux+TTTr'r cTt{uio+ poqsTTq+sa eq. TTTI'Ipuruop8ulX paXlug/se++S pa+Tu1 e1e.:ede{aaoqe (e) Ude.r8eaed-qns rrT o+ ?eJ.rosrTTo? aq+ Jo +usul+oTT o e+p oq+-!EiaorTal s q+Trrit IeprITop peuoT+ueus{oJ eq+ Jo ptmluauea.r8y uoT+redoog cTltrouocgpTssuoTsTloJd eq+ q+TraecupJocoe uT en;ccepetr sllsodep X*ed.ralunoc rfcua;.fac Ie.rreqwopSuTXpe+Tug eq+ Jo Xtralmr;r

    oaloq f qdea8e.:ed u1 peuoT+uou saTro+punJ uoT 9u:rr1oas.r eq+ ro; suo11.roeq. TTTA|e.troqs (B) qdr8_-{gd=qs#Teg+ ;so l.red.ralttnod Quaa.rnc *FdoT eqaaeg uopBuTX pa+Tufl bq1 go-'laeuuielo

    i+ov ?Ts aq+ rbputl Ee++s pe+Tuo efq e1qe11eA epu ecu+sTss JITopeql Suluaeao8 eanpsco.rd .(11.roq1ny+uaoq+ Japtm +uaulocnco;rdawwe.r8otd le.raua8 *s.rtsTTo?osaq& rJe++oT sTi{+ Jo e"rn1err8eq. TTTir +uatr$oTTsTqI 'pepuotu sTnTnwq+ Jepun acu+sTss xeTTop JeroJ saJnpococd ?6qsrTqlso q+Trr acupJo sura+ oq+ +no f;raec o+ CEST lee.faq1 8u1.rnp uop8utX pelTun oq+ Jo +ualm+oTT? TTTfr so++S ?e+TuO eq+ J'o +ueuu.;r

    'uopFul; pe+Toq+ pue sa++s ?e+Tun eq+ Jo +ueuru.-aa.r8e .r(qpeuluJelo? aq TTqs (paleugu.moJJ suot uo re+Jeeieql entrcc? feu qcpue 1ed1cu1ad g:o slueru"rfed f,rre8ugpn1cu1purg oq+ u1 8u1u1euar splrnJ fue 3:o lesodsuO 's+uouuitaAop oer+eq+ uaa*r+eq +useq rleu s?urq ueol 8u1aI6AsJ eq+ Jo q+o

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    for

    dol-larstheby

    the

    above,

    this

    abovb. (") fhe revolving loan fund"s refergraph J above will d.raw thelr initial fund.sy1+):* fJates/united. Kingd.on und. referred. ttcJ(l) above. Any pa;rmentson loa,nsmad.erand any net interest earnj.ngs whj-cb may acerwlth sucb loans will likewise bb used. to maki.n accord.a^nce with pare,g:rapb 3 aboveo(f ) The total amount of funds expa^ncew"lth this letter for Loans for projectstbe scope of the second. sentenee of sub-paragparagraph 3 above wi.1l not exceed. 3odi of thefund.s which will be available in accord.ance(g) The revolving loan fund-s creawil l at al l t lmes be separatery accounted- fothelr separate identity.

    B, In the event that either or both oloan fund-s d.escribed i.n paragraph J above d.obeing, the Government of the united. Kingd.omthe Governnent of the united. states any d.ollathe Goverlment of the united. Kingd.om pursuantments set out above, that is, shou.Id one sucestablished.o $3tzrloo or strch lesser anountreceived. in respeet of the fund. not estabrisheneither fund. be established., &6Z5.-O0Oor thereceived pursuant to th.e amangenents set outhat a.msunt be less than $52lrooo, and the Gunlted states will refund to the GovernmentKingd.om the sterling equivalent of rafo of su

    -175-

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    JOeq+ +ues8q+ uT +nou1dpepuoueprruJo (q)6tts+rreEt

    +uec3rq+?z eq+I."qt JoC

    oS duopuorltulu&o6r6geaogc+E eqtrl

    ?:fo1r1 ufarlag /, /.cTJeurv Jo se++s pe+Tuo eq+ Jos8urpuelsrepun aq+ +uesaadaa osle e^oq"-Japun eq+ +q+ uJTJuoc p1nom noif ;r pe18

    '1u1odde feu se1e4s pe+Tun eq+ Jo +ua-uuJelogJaq+o .,fue epnlcuT o+ paueep eq 11eqs :feq1porequnu aq+ rxT .r11cc__o:*,-rf-c_ua8_y__4.1lgEgggn+npa+Tu1 aq+ 01 uoTssrl[ 1e1cedg,, spJolr eq+ Jo+utro

    %A6 go lualealnba 8u11.re1s ag+ Jo eaoq |(c) Udea8e.:ed-qns Jopun ?eqsTTq1sa +unocc/sa1e1g ps+Tug lelceds aq+ uT spunJ aq+ uroeq+ .To +uauu;eAop eq+ o+ esoleJ aq+ o

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    States/(c)9Of"

    any otherappoint.under-

    the }{latnaSpeeUni.Anori&end.Jr:ne[b.c Rt" Eon" Sclwyn lrloyd.Forcign OfficcDorming Strecttond.ono So Wo 1Dcar l[r" lrioyd.a

    r writs to aeknowled.ge and. thax* you ftbc 24th of Juneu 1953 ebor.r.t he und.crs"ua,nrccont cenvcrsations betwaon r@prcscnta*j.vamonts. abou.t a progrem punsua,nt to the provis115(k) of tbc E99g9nic Cooperati.on Aet cf i!ancl of sectiora 5n5(a) of th.a lfirattaanseeurstya,moad.cd.oo bc carri-cd out ls the Tiga.nd.a rTangangrika,

    In repJ.y I anaable to confi::u that th.eout in tb.e nino nunbered. paragraphs of yor:rsent the underet&nd.i.ng of the Government of,of Amerieeo

    /./ L,i.nool.n GCbfef of

    *LVV *