title: Recommendation for a COUNCIL DECISION on the signature and notification of provisional application of the International Agreement on Jute and Jute Products, 1982 (submitted to the Council by the Commission)

text:
ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (83) 102
Vol. 1983/0032
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak--- COMMISSION OF THE E U R O P E A N COMMUNITIES
                                                           COM(83) 102 f i n a l
                                                           B r u s s e l s , 10 March 1983
                                 Recommendation f o r a
                                    COUNCIL DECISION
            on the s i g n a t u r e and n o t i f i c a t i o n   of p r o v i s i o n a l a p p l i -
            c a t i o n of the I n t e r n a t i o n a l Agreement on Jute and Jute
                                     P r o d u c t s , 1982
                       (submitted to the C o u n c i l by the Commission)
  COM(83) 102 f i n a l
 ---pagebreak---                               EXPLANATORY      MEMORANDUM
1.        N e g o t i a t i o n of the I n t e r n a t i o n a l Agreement on J u t e and J u t e P r o d u c t s ,
1982,       was completed on 1 October 1982;                       this international          commodity
agreement was n e g o t i a t e d under the a u s p i c e s of the U N C T A D I n t e g r a t e d Programme
f o r Commodities.               The main element i n the new Agreement i s the e s t a b l i s h m e n t
of an I n t e r n a t i o n a l J u t e O r g a n i s a t i o n , governed by an I n t e r n a t i o n a l J u t e
C o u n c i l , which w i l l p r o p o s e , approve and seek f i n a n c e f o r p r o j e c t s         in the
f i e l d s of r e s e a r c h , development, market promotion and cost                         reduction,
designed to improve the c o m p e t i t i v e n e s s of j u t e and j u t e p r o d u c t s .              The
q u e s t i o n of s t a b i l i s a t i o n w i l l a l s o continue to be c o n s i d e r e d .
2.        The Agreement was n e g o t i a t e d by the Community and i t s Member S t a t e s
i n accordance with a common p o s i t i o n (1) agreed i n the C o u n c i l .                         The
o b j e c t i v e s and content of the Agreement have been agreed by the Community and
i t s Member S t a t e s s a t i s f a c t o r i l y t o meet t h i s common p o s i t i o n , i n the
context of the a c t u a l e v o l u t i o n of the n e g o t i a t i o n s which led to the A g r e e
ment .
3.        The Agreement i s open f o r s i g n a t u r e between 3 January and 30 June 1983.
The      Commission proposes t h a t the Community, as w e l l as i t s Member S t a t e s ,
s i g n the Agreement at an e a r l y d a t e .
4.        Given the l i k e l y t i m e - l a g s i n c e r t a i n Member S t a t e s c o n c l u s i o n p r o c e d u r e s ,
the Commission a l s o proposes t h a t the Community and i t s Member S t a t e s n o t i f y
their        r e a d i n e s s to a p p l y the Agreement p r o v i s i o n a l l y on i t s e n t r y i n t o f o r c e .
It     should be noted t h a t the Community and i t s Member S t a t e s hold over 16
per      cent of the 65 per c e n t , or one q u a r t e r o f , the trade on the                        importing
s i d e r e q u i r e d to b r i n g the A g r e e m e n t i n t o e f f e c t . The p o l i t i c a l importance
f o r the Community of n o t i f y i n g i t s p r o v i s i o n a l a p p l i c a t i o n before 30 June 1983
is     therefore            significant.
  (1)       See C o u n c i l Document 12098, Proba 7 6 , of 8 . 1 2 . 1 9 8 0 .
 ---pagebreak---                                       -   2   -
5.   When      the Agreement has been concluded by the ten Member S t a t e s , the
Commission w i l l propose t h a t the Community a l s o concludes i t .       In
these c o n d i t i o n s , the Commission recommends to the C o u n c i l the D e c i s i o n
annexed below.
 ---pagebreak---                                          RECOMMENDATION FOR A
                                             COUNCIL DECISION
    on t h e    signature        and n o t i f i c a t i o n      of p r o v i s i o n a l a p p l i c a t i o n   of    the
        International            Agreement         on J u t e and J u t e P r o d u c t s , 1982
 THE COUNCIL OF THE EUROPEAN COMMUNITIES,
 Having    regard to the Treaty                   establishing              t h e E u r o p e a n Economic C o m m u n i t y ,
 and i n p a r t i c u l a r   Article         113    thereof.
 Having regard to the               recommendation                from      the Commission,
Whereas t h e      International               Agreement on J u t e and J u t e P r o d u c t s , 1982 i s                      open
for    signature       u n t i l 30 J u n e 1 9 8 3 ;          whereas the              s a i d Agreement c o n s t i t u t e s    an
 instrument       for    the     implementation              of     r e s e a r c h , development,            market      promotion
and c o s t    reduction        projects         c o n c e r n i n g j u t e and j u t e p r o d u c t s ,         for     information
collection,        and f o r      the     consideration               of    important          i s s u e s such as       stabilisation
and t h e    competition          of    j u t e and s y n t h e t i c s         and o t h e r       substitutes,        with the     aim
of   improving       structural           conditions           in the         international               jute market,        enhancing
the    competitiveness            of    j u t e and j u t e p r o d u c t s ,          and d e v e l o p i n g t h e i r    production
and t r a d e ;    whereas the a p p l i c a t i o n             of    the      s a i d Agreement          by t h e   Community
will    contribute         to   the     implementation                of the       common c o m m e r c i a l      policy;
Whereas t h e      Community          should therefore                  sign this          Agreement and g i v e             notification
to   the S e c r e t a r y - G e n e r a l of    the United Nations O r g a n i z a t i o n that                      it    intends
to apply      the    Agreement p r o v i s i o n a l l y ,            subject         to   its     subsequent       approval,
HAS DECIDED AS FOLLOWS:
 ---pagebreak---                                                   -       2     -
                                                  A r t i e le 1
          By 30 J u n e 1983 t h e          Community w i l l             s i g n the I n t e r n a t i o n a l   Agreement     on
J u t e and J u t e P r o d u c t s , 1 9 8 2 ,       i n a c c o r d a n c e w i t h A r t i c l e 37 t h e r e o f ,     and   will
give n o t i f i c a t i o n   to  the       S e c r e t a r y - G e n e r a l of    the U n i t e d N a t i o n s   Organization,
i n a c c o r d a n c e w i t h A r t i c l e 39 o f         the Agreement, that               it    will       apply   the
Agreement p r o v i s i o n a l l y ,        a s an i m p o r t i n g       member, when i t            enters      into    force
in accordance with A r t i c l e                40.
                                                  A r t i e le 2
          The P r e s i d e n t of    the      C o u n c i l i s hereby a u t h o r i z e d         to designate          the
p e r s o n empowered t o         s i g n the        A g r e e m e n t , and t o d e p o s i t      the      notification
of     provisional application                  of     the      Agreement.
          The t e x t s    of  the     notification               of a p p l i c a t i o n and o f      the      Agreement
 are annexed to            this    Decision.
 Done a t      Brussels,                                                                      For the           CounciI
                                                                                The P r e s i d e n t
 ---pagebreak---                                         ANNEX
Notification           of   provisional          application           of  the I n t e r n a t i o n a l   Agreement
                                 on J u t e and J u t e P r o d u c t s , 1982
        In  a c c o r d a n c e w i t h A r t i c l e 39 o f       the    International           Agreement     on
J u t e and J u t e P r o d u c t s , 1 9 8 2 , t h e C o u n c i l o f      the European Communities
hereby n o t i f i e s      the  S e c r e t a r y - G e n e r a l of   the United Nations                Organization,
the d e p o s i t a r y   of   the Agreement,             that     it   intends    to     set     i n motion     the
institutional           procedure       necessary for              t h e Agreement        t o be a p p r o v e d and
that    the  Community w i l l          apply        t h e Agreement p r o v i s i o n a l l y ,         as an  importing
member, when i t            comes i n t o f o r c e       in accordance with A r t i c l e                40.
 ---pagebreak---                                                                          Distr.
                                                                         RESTRICTED
                                                                         TD/JUTE/EX/R.4
                                                                         28 September- 1S82
United Natio.as C o n f e r e n c e . o n . Trade and. Development       Original:   ENGLISH
Integrated Programme f o r Commodities .
UNITED NATIONS CONFERENCE ON JUTE AND JUTE PRODUCTS, 198l
Third part
Geneva, 20 September 1982
Executive Committee
Agenda item 7
                                         INTERNATIONAL AGREEMENT ON JUTE
                                          , AND JUTE PRODUCTS, 1982
GE.82-52392
 ---pagebreak--- TD/JU*B/E*/R,4
page i i
                                                  CONTENTS
                                                                           Page
     Preamble                                                               iv
CHAPTER I : O B J E C T I V E S                                               1
     Article 1        Objectives                                              1
CHAPTER II:.        DEFINITIONS                                              •2
     A r t i c l e 2 Definitions.                                             2
CHAPTER I I I : ORGANIZATION AND ADMINISTRATION                               4.
     Article 3        Establishment, headquarters and structure of the
                      International Jute Organization                         4
     Article 4        Membership i n the Organization                         4'
     Article 5        Membership by intergovernmental        organizations    4
CHAPTER IV;         INTERNATIONAL JUTE COUNCIL                                5
     Article 6        Composition of the International Jute Council           5
     Article 7        Powers and functions of the Council                     5
     Article 8        Chairman and Vice-Chairman of the Council               5
     Article 9        Sessions of the Council                                 6
     A r t i c l e 10 Distribution of. votes.                                 6
     A r t i c l e 11 Voting procedure o f the Council                       7
     A r t i c l e 12 Decisions and recommendations of the Council            7
     A r t i c l e 13 Quorum for the Council                                 8
     A r t i c l e 14 Co-operation with other organizations                  8
     A r t i c l e 15 Admission of observers                                 8
     A r t i c l e 16 Executive Director and s t a f f                       9
CHAPTER V:          PRIVILEGES AND IMMUNITIES .                             10
     A r t i c l e 17 Privileges and immunities                             10
CHAPTER VI:         FINANCE                                                 11
     A r t i c l e 18 Financial accounts                                    11
     A r t i c l e 19 Forms of payment                                      11
     A r t i c l e 20 Audit and publication of accounts                     11
     A r t i c l e 21 Administrative Account                                11
     A r t i c l e 22 Special Account                                       13
CHAPTER VII:        OPERATIONAL ACTIVITIES                                  15
     A r t i c l e 23 Projects                                              15
     A r t i c l e 24 Research and development                              16
     A r t i c l e 25 Market promotion                                      16
     A r t i c l e 26 Cost reduction                                        16-
     A r t i c l e 27 C r i t e r i a for approval of projects              16
     A r t i c l e 28 Committee on Projects                                 17
 ---pagebreak---                                                                                TD/JUTE/EX/R.4
                                                                                page i i i
                                                             CONTENTS       (continued)
                                                                                Page
CHAPTER Villi          RELATIONSHIP WITH THE COMMON FUND.FOR COMMODITIES                                                18
      A r t i c l e 29, R e l a t i o n s h i p w i t h t h e Common Fund f o r Commodities                            ' 18
CHAPTER I X :           CONSIDERATION OF IMPORTANT ISSUES CONCERNING JUTE
                        AND JUTE PRODUCTS                                                                               19
      A r t i c l e 30    Consideration of s t a b i l i z a t i o n , competition with
                          s y n t h e t i c s and o t h e r i s s u e s                                                  19'
CHAPTER X:              STATISTICS, STUDIES AND INFORMATION                                                              20
      A r t i c l e 31    S t a t i s t i c s and s t u d i e s and i n f o r m a t i o n                                20
      A r t i c l e 32    Annual r e p o r t and r e p o r t on assessment and r e v i e w                               20
CHAPTER X I :           MISCELLANEOUS                                                                                21
       A r t i c l e 33    Complaints and d i s p u t e s                                                                21
       A r t i c l e 34    G e n e r a l o b l i g a t i o n s o f members                                               21
       A r t i c l e 35    R e l i e f from o b l i g a t i o n s                                                        21 .
       A r t i c l e 36    D i f f e r e n t i a l and r e m e d i a l measures                                           21
 CHAPTER X I I :       FINAL PROVISIONS                                                                                22
       A r t i c l e 37    S i g n a t u r e , r a t i f i c a t i o n , acceptance and a p p r o v a l                   22
       A r t i c l e 30     Depositary                                                                                22
       A r t i c l e 39    Notification of provisional application                                                        22
       A r t i c l e 40    Entry i n t o f o r c e                                                                        22
       A r t i c l e 41     Accession                                                                                25
        A r t i c l e 42   Amendments                                                                                24
        A r t i c l e 43     Withdrawal                                                                                24
        A r t i c l e 44    Exclusion                                                                                25
        A r t i c l e 45    Settlement o f accounts with withdrawing o r
                            e x c l u d e d members o r members unable t o
                            a c c e p t an amendment                                                                       25
        A r t i c l e 46    D u r a t i o n , e x t e n s i o n and t e r m i n a t i o n                                  25
        A r t i c l e 47     Reservations                                                                                26
  ANNEXES
         Annex A             Shares o f i n d i v i d u a l e x p o r t i n g c o u n t r i e s i n t o t a l n e t
                            e x p o r t s o f j u t e and j u t e p r o d u c t s o f c o u n t r i e s
                             p a r t i c i p a t i n g i n t h e U n i t e d N a t i o n s Conference on J u t e
                             and J u t e P r o d u c t s , 198l» as e s t a b l i s h e d f o r t h e
                             purposes o f a r t i c l e 40.
         Annex B             Shares o f i n d i v i d u a l i m p o r t i n g c o u n t r i e s and groups o f
                             c o u n t r i e s i n t o t a l n e t i m p o r t s o f j u t e and j u t e
                             products o f c o u n t r i e s p a r t i c i p a t i n g i n the
                             U n i t e d N a t i o n s Conference on J u t e and J u t e P r o d u c t s ,
                             1981, a s e s t a b l i s h e d f o r t h e purposes o f a r t i c l e 40.
 ---pagebreak---             r
   TD-/JU ";/EX/R.4
  page i v
                                                                 PREAMBLE
  The P a r t i e s t o t h i s      Agreement,
         Recalling'the              Declaration        and Programme o f A c t i o n on t h e E s t a b l i s h m e n t o f a
, New I n t e r n a t i o n a l Economic Order,
       . R e c a l l i n g r e s o l u t i o n s 93 ( I V ) and 124 (V) on t h e I n t e g r a t e d       Programme f o r
 Commodities adopted by t h e U n i t e d N a t i o n s Conference on Trade and Development a t
 i t s f o u r t h and f i f t h       sessions,
         Recalling further the•Substantial                         New Programme o f A c t i o n f o r t h e 1980s f o r
 the L e a s t Developed C o u n t r i e s j           and i n p a r t i c u l a r paragraph 82        thereof,
        R e c o g n i z i n g t h e i m p o r t a n c e o f j u t e and j u t e p r o d u c t s t o t h e economies o f many
 developing.exporting countriesj
        Considering that close i n t e r n a t i o n a l co-operation i n f i n d i n g s o l u t i o n s to the
problems f a c i n g t h i s commodity w i l l f u r t h e r t h e economic development o f t h e
exporting         c o u n t r i e s and s t r e n g t h e n economic c o - o p e r a t i o n between e x p o r t i n g and
importing          countries,
       Have agreed .as f o l l o w s :
 ---pagebreak---                                                                                TIJ/Jl'Ta/EX/R.A
                                                                                pago 1
                                                         CHAPTER I - OBJEC'i                 ES
                                                                     Article 1
                                                                     O b j e c t s :s
 1.         For lie b e n e f i t o f both e x p o r t i n g                and i m p o r t i n g   members, and w i t h a view t o
 achieving            t h e r e l e v a n t o b j e c t i v e s adopted by t h e U n i t e d N a t i o n s Conference on
 Trade and Development i n i t s r e s o l u t i o n s 93 ( I V ) and 124 (V) on t h e I n t e g r a t e d
 Programme f o r Commodities and t a k i n g account o f i t s r e s o l u t i o n 9'C> ( I V ) , t h e
 o b j e c t i v e s o f t h e I n t e r n a t i o n a l Agreement on J u t s and J u t e P r o d u c t s , 1982
 ( h e r e i n a f t e r r e f e r r e d t o as " t h i s Agreement") s h a l l be:
            (a)      To improve s t r u c t u r a l c o n d i t i o n s            i n the j u t e market;
           (b)       To enhance t h e c o m p e t i t i v e n e s s o f j u t e and j u t e p r o d u c t s ;
           (c)       To m a i n t a i n and e n l a r g e e x i s t i n g markets as w e l l as t o d e v e l o p new
markets f o r j u t e and j u t e p r o d u c t s ;
           (d)       To develop p r o d u c t i o n o f j u t e and j u t e p r o d u c t s w i t h a view t o i m p r o v i n g ,
inter a l i a,           chair q u a l i t y f o r the b e n e f i t o f importing                      and e x p o r t i n g  members;
           (e)       To d e v e l o p p r o d u c t i o n , e x p o r t s and i m p o r t s o f j u t e and j u t e p r o d u c t s as
regards quantity                    so as t o meet t h e r e q u i r e m e n t s o f w o r l d demand and s u p p l y .
2.         The o b j e c t i v e s      r e f e r r e d t o i n paragraph 1 o f t h i s , a r t i c l e s h o u l d be met i n
p a r t i c u l a r by means o f :               s
           (a)       P r o j e c t s o f r e s e a r c h and development, market promotion and c o s t                               reduction
           (b)      C o l l a t i o n and d i s s e m i n a t i o n       of information            r e l a t i n g t o j u t e and j u t e
products;
           (c)      Consideration               o f i m p o r t a n t i s s u e s c o n c e r n i n g j u t e and j u t e p r o d u c t s , such
as t h e q u e s t i o n s o f s t a b i l i z a t i o n o f p r i c e s and s u p p l i e s and o f c o m p e t i t i o n               with
s y n t h e t i c s and s u b s t i t u t e s .
 ---pagebreak--- TD/JUTE/EX/R.4
page 2                            '
                                                  CHAPTER I I - DEFINITIONS
                                                              Article 2
                                                            Definitions
          For t h e purposes o f t h i s Agreement:
           (1)     " J u t e " means raw j u t e , kenaf and o t h e r a l l i e d f i b r e s , i n c l u d i n g
Urena Lobata, A b u t i l o n Avicennae and Cephalonema Polyandrum;
           (2)     "Jute p r o d u c t s " means p r o d u c t s     made w h o l l y o r almost w h o l l y o f j u t e , o r
products         whose l a r g e s t component by weight i s j u t e ;
           (3)    "Member" means a Government o r an i n t e r g o v e r n m e n t a l                      o r g a n i z a t i o n as
provided         f o r i n a r t i c l e 5 which has consented t o be bound by t h i o Agreement
provisionally or d e f i n i t i v e l y ;
           (4)    " E x p o r t i n g member" means a member whose e x p o r t s o f j u t e and j u t e                             products
exceed i t s imports o f j u t e and j u t e products                        and which has d e c l a r e d i t s e l f t o be an
e x p o r t i n g member;
           (5)    "Importing            member" means a member whose i m p o r t s o f j u t e and j u t e                           products
exceed i t s e x p o r t s o f j u t e and j u t e products                  and which has d e c l a r e d i t s e l f t o be an
i m p o r t i n g member;
          (6)     " O r g a n i z a t i o n " means t h e I n t e r n a t i o n a l J u t e O r g a n i z a t i o n e s t a b l i s h e d i n
accordance w i t h a r t i c l e              3;
          (7)     " C o u n c i l " means t h e I n t e r n a t i o n a l J u t e C o u n c i l e s t a b l i s h e d i n accordance
with a r t i c l e       6;
          (8)     " S p e c i a l vote"^means a vote r e q u i r i n g a t l e a s t two t h i r d s o f the votes
c a s t by e x p o r t i n g members p r e s e n t and v o t i n g and a t l e a s t two t h i r d s o f the. votes
c a s t by i m p o r t i n g members p r e s e n t and v o t i n g , counted s e p a r a t e l y , on c o n d i t i o n t h a t
these votes a r e c a s t by a m a j o r i t y o f e x p o r t i n g members and by a t l e a s t f o u r
i m p o r t i n g members p r e s e n t and v o t i n g ;
           (9) . "Simple d i s t r i b u t e d m a j o r i t y v o t e " means a vote r e q u i r i n g more than h a l f
of the t o t a l votes o f e x p o r t i n g members p r e s e n t and v o t i n g and more than h a l f o f
the t o t a l v o t e s o f t h e i m p o r t i n g members p r e s e n t and v o t i n g counted s e p a r a t e l y .
The votes r e q u i r e d f o r e x p o r t i n g members must be c a s t by a m a j o r i t y o f e x p o r t i n g
members present and v o t i n g ;
           (10)   " F i n a n c i a l y e a r " means t h e p e r i o d from 1 J u l y t o 30 June i n c l u s i v e ;
          (11)    "Jute y e a r " means t h e p e r i o d from 1 J u l y t o 30 June i n c l u s i v e ;
 ---pagebreak---                                                                                TD/JUTE/EX/R.4
                                                                                page 3
           (12) "E-ports o f j u t e " or "exports o f j u t e p r o d u c t s " means any j u t e o r j u t e
products            h i c h l e a v e t h e customs t e r r i t o r y ' o f any'member;   and "imports o f j u t e " or
"imports o f j u t e p r o d u c t s " means .any j u t e o r j u t e .products which e n t e r the customs
t e r r i t o r y o f any member, p r o v i d e d t h a t , f o r t h e purposes''of these d e f i n i t i o n s , custotM
t e r r i t o r y s h a l l , i n the case o f a member which comprises more than one customs
t e r r i t o r y , be deemed t o r e f e r t o t h e combined customs t e r r i t o r i e s o f t h a t member;
and
           (13) " F r e e l y u s a b l e c u r r e n c i e s " means t h e deutsche mark, t h e French         franc,
the Japanese yen, t h e pound s t e r l i n g , t h e U n i t e d S t a t e s d o l l a r and any o t h e r currency
which ha3 been d e s i g n a t e d from -time t o time by a competent i n t e r n a t i o n a l monetary
organization              as b e i n g i n f a c t w i d e l y used t o make payments f o r i n t e r n a t i o n a l
t r a n s a c t i o n s and w i d e l y t r a d e d i n t h e p r i n c i p a l exchange markets.
 ---pagebreak---     ..'/JUTE./EX/R.4
  page 4
                                      CHAPTER I I I - ORGANIZATION AND ADMINISTRATION
                                                                          Article 3          . . .
                                  E s t a b l i s h m e n t , headquarters and s t r u c t u r e o f t h e
                                                    I n t e r n a t i o n a l Jute O r g a n i z a t i o n
 1.        The I n t e r n a t i o n a l Jute O r g a n i z a t i o n i s hereby e s t a b l i s h e d t o a d m i n i s t e r t h e
 p r o v i s i o n s and s u p e r v i s e t h e o p e r a t i o n o f t h i s Agreement.
 2.        The O r g a n i z a t i o n s h a l l f u n c t i o n through             t h e I n t e r n a t i o n a l Jute C o u n c i l and
 the Committee on P r o j e c t s as permanent b o d i e s , and t h e E x e c u t i v e D i r e c t o r and the
 staff.          The C o u n c i l may, by s p e c i a l v o t e , e s t a b l i s h f o r s p e c i f i c purposes committees
 and working groups w i t h s p e c i f i e d terms o f reference..
 3.        The headquarters                 o f t h e O r g a n i z a t i o n s h a l l be i n Dacca, Bangladesh.
 4.        The headquarters                 o f t h e O r g a n i z a t i o n s h a l l a t a l l times be l o c a t e d i n the
 t e r r i t o r y o f a member.
                                                                          Article 4
                                                   Membership i n t h e O r g a n i z a t i o n
1.         There s h a l l be two c a t e g o r i e s o f membership i n the O r g a n i z a t i o n , namely:
           (a)       exporting;            and
           (b)       importing.
2.        A member may change i t s c a t e g o r y o f ruembership on such c o n d i t i o n s as the
Council s h a l l            establish.
                                                                         Article 5
                                     Membership by i n t e r g o v e r n m e n t a l            organizations
1.        Any r e f e r e n c e i n t h i s Agreement t o "Governments" s h a l l be c o n s t r u e d as i n c l u d i n g
the European Economic Community and any o t h e r i n t e r g o v e r n m e n t a l                                    o r g a n i z a t i o n having
r e s p o n s i b i l i t i e s i n r e s p e c t o f the n e g o t i a t i o n , c o n c l u s i o n and a p p l i c a t i o n o f
i n t e r n a t i o n a l agreements, i n p a r t i c u l a r commodity agreements.                                  A c c o r d i n g l y , any
r e f e r e n c e i n t h i s Agreement t o s i g n a t u r e , r a t i f i c a t i o n , acceptance o r a p p r o v a l , o r
to n o t i f i c a t i o n o f p r o v i s i o n a l a p p l i c a t i o n , o r t o a c c e s s i o n s h a l l , i n t h e case o f
such i n t e r g o v e r n m e n t a l       o r g a n i z a t i o n s , be c o n s t r u e d as i n c l u d i n g a r e f e r e n c e t o
s i g n a t u r e , r a t i f i c a t i o n , acceptance o r a p p r o v a l , o r t o n o t i f i c a t i o n o f p r o v i s i o n a l
a p p l i c a t i o n , or t o a c c e s s i o n , by such i n t e r g o v e r n m e n t a l o r g a n i z a t i o n s .
2.        In the case o f v o t i n g on matters w i t h i n t h e i r competence, such                                         intergovernmental
o r g a n i z a t i o n s s h a l l vote w i t h a number o f votes equal t o the t o t a l number o f votes
a t t r i b u t a b l e t o t h e i r member S t a t e s i n accordance w i t h a r t i c l e 10.                              I n such c a s e s ,
the member S t a t e s o f such i n t e r g o v e r n m e n t a l                 o r g a n i z a t i o n s s h a l l not be e n t i t l e d t o
exercise t h e i r i n d i v i d u a l v o t i n g r i g h t s .
 ---pagebreak---                                                                                TD/JUTE/EX/R.4
                                                                                page 5
                                           CHAPTER IV - INTERNATIONAL JUTE COUNCIL .
                                                                       Article 6
                                        Composition o f the I n t e r n a t i o n a l J u t e            Council
  1.         The h i g h e s t a u t h o r i t y o f t h e O r g a n i z a t i o n       s h a l l be the I n t e r n a t i o n a l J u t e
  C o u n c i l , which p h a l l c o n s i s t o f a l l the members o f the O r g a n i z a t i o n .
  2.         Each member s h a l l be r e p r e s e n t e d              i n the C o u n c i l by one d e l e g a t e , and may
  designate           a l t e r n a t e s and a d v i s e r s t o a t t e n d s e s s i o n s o f t h e C o u n c i l .
  3.        An a l t e r n a t e d e l e g a t e   s h a l l be empowered t o a c t and vote on b e h a l f o f the
  d e l e g a t e d u r i n g the l a t t e r ' s absence o r i n s p e c i a l                   circumstances.
                                                                       Article 7
                                              Powers and f u n c t i o n s o f the C o u n o i l
  1.        The C o u n c i l s h a l l e x e r c i s e a l l such powers and perform o r arrange f o r the
  performance o f a l l such f u n c t i o n s as a r e n e c e s s a r y t o c a r r y out t h e p r o v i s i o n s o f
  t h i s Agreement.
 2.         The C o u n c i l s h a l l , by s p e c i a l v o t e , adopt such r u l e s and r e g u l a t i o n s as a r e
 necessary t o c a r r y out the p r o v i s i o n s o f t h i s Agreement and a r e c o n s i s t e n t therewith',
  i n c l u d i n g i t s own r u l e s o f procedure and.the f i n a n c i a l and s t a f f r e g u l a t i o n s o f the
 Organization.                 Such f i n a n c i a l    r u l e s and r e g u l a t i o n s s h a l l govern, i n t e r a l i a , the
 r e c e i p t and e x p e n d i t u r e     o f funds under t h e A d m i n i s t r a t i v e and S p e c i a l Accounts,
 The      C o u n c i l may, i n i t s r u l e s o f p r o c e d u r e , p r o v i d e            f o r a procedure whereby i t may,
 w i t h o u t meeting, decide               specific           questions.
 3.         The C o u n c i l s h a l l keep such r e c o r d s as a r e r e q u i r e d f o r t h e performance o f i t s
 f u n c t i o n s under t h i s Agreement.
                                                                       Article 8
                                          Chairman and Vice-Chairman o f t h e C o u n c i l
 1.         The C o u n c i l s h a l l e l e c t f o r each j u t e year a Chairman and a Vice-Chairman, who
 s h a l l not be p a i d by t h e O r g a n i z a t i o n .
 2.         The Chairman and the Vice-Chairman s h a l l be e l e c t e d , one from among t h e
 r e p r e s e n t a t i v e s o f e x p o r t i n g members and t h e o t h e r from among t h e r e p r e s e n t a t i v e s o f
 i m p o r t i n g members.              These o f f i c e s     s h a l l a l t e r n a t e each y e a r between t h e two
 c a t e g o r i e s o f members, p r o v i d e d , however, t h a t t h i 3 s h a l l n o t p r o h i b i t t h e
 r e - e l e c t i o n o f e i t h e r o r both, under e x c e p t i o n a l c i r c u m s t a n c e s ,          by s p e c i a l vote o f
 the C o u n c i l .
 3,.        In t h e temporary absence o f t h e Chairman, t h e Vice-Chairman s h a l l a c t i n h i s
 place.           In the temporary absence o f both the Chairman and t h e Vice-Chairman o r th4
"•^permanent absence o f one o r both o f them, t h e C o u n c i l may e l e c t new o f f i c e r s                                     from-
                                                                                :
 Sjaong the r e p r e s e n t a t i v e s o f t h e e x p o r t i n g members and /or from among t h e                                        . -
 r e p r e s e n t a t i v e s o f the i m p o r t i n g members, as t h e case may be, on a temporary o r                                      ·.;
 pertinent basis.                                                                                .
 ---pagebreak---        TD/JUTE/EX/R.4
       page 6
                                                                               Article 9
                                                               S e s s i o n s o f the C o u n c i l
      1.        As a g e n e r a l r u l e , the C o u n c i l s h a l l h o l d one r e g u l a r s e s s i o n i n each h a l f o f
     the j u t e y e a r .
     2.        The C o u n c i l s h a l l meet i n s p e c i a l s e s s i o n whenever i t so d e c i d e s o r a t the
     request o f :
                (a)      The E x e c u t i v e    D i r e c t o r , i n agreement w i t h t h e Chairman o f the C o u n c i l ;                          or
               (b)       A m a j o r i t y o f e x p o r t i n g members o r a m a j o r i t y o f i m p o r t i n g members;                        or
               (c)       Members h o l d i n g a t l e a s t 500                    votes.
    3.        S e s s i o n s o f the C o u n c i l s h a l l be h e l d a t the h e a d q u a r t e r s o f the O r g a n i z a t i o n
    u n l e s s the C o u n c i l , by s p e c i a l v o t e , d e c i d e s                otherwise.           I f on the i n v i t a t i o n o f any
    member the C o u n c i l meets elsewhere than a t t h e h e a d q u a r t e r s o f the O r g a n i z a t i o n ,                                   that
   member s h a l l pay t h e a d d i t i o n a l c o s t o f h o l d i n g t h e meeting away from h e a d q u a r t e r s .
   4.         N o t i c e o f any s e s s i o n and t h e agenda f o r the s e s s i o n s h a l l be communicated t o
   members by t h e E x e c u t i v e              D i r e c t o r a t l e a s t 30 days i n advance, except i n cases o f
   emergency when n o t i c e s h a l l be communicated a t l e a s t seven days i n advance.
                                                                          Article          10
                                                              D i s t r i b u t i r . " i o f votes
   1.        The e x p o r t i n g members s h a l l t o g e t h e r                    hold 1,000      votes and the i m p o r t i n g members
  s h a l l t o g e t h e r h o l d 1,000           votes.                                                                        '
  2.         The votes o f the e x p o r t i n g members s h a l l be d i s t r i b u t e d as f o l l o w s :                                150   votes
  s h a l l be d i v i d e d e q u a l l y among a l l e x p o r t i n g members t o t h e n e a r e s t whole vote f o r
  each member;                the r e m a i n i n g    votes s h a l l be d i s t r i b u t e d i n p r o p o r t i o n t o the average
  volume o f t h e i r net e x p o r t s o f j u t e and j u t e p r o d u c t s d u r i n g t h e p r e c e d i n g                            three
  jute years, provided                    t h a t the maximum number o f votes o f any e x p o r t i n g member s h a l l
 not exceed 450.                    The s u r p l u s votes i n excess o f the maximum s h a l l be d i s t r i b u t e d t o
 a l l e x p o r t i n g members h a v i n g             l e s s than 250                votes i n d i v i d u a l l y , i n p r o p o r t i o n t o
 t h e i r trade           shares.
 3·        The votes o f i m p o r t i n g members s h a l l be d i s t r i b u t e d as f o l l o w s :                             each i m p o r t i n g
 member s h a l l have up t o f i v e i n i t i a l v o t e s p r o v i d e d                       that the t o t a l of i n i t i a l            votes
 3 h a l l n o t exceed 125.                 The r e m a i n i n g        votes s h a l l be d i s t r i b u t e d i n p r o p o r t i o n t o the
annual average o f the volume o f t h e i r r e s p e c t i v e n e t imports o f j u t e and j u t e
products d u r i n g t h e t h r e e - y e a r              p e r i o d commencing f o u r c a l e n d a r y e a r s p r i o r                 to'the
d i s t r i b u t i o n of votes.
4.        The C o u n c i l s h a l l d i s t r i b u t e t h e votes f o r each f i n a n c i a l year a t the b e g i n n i n g
of the f i r s t          s e s s i o n o f t h a t year i n accordance w i t h the p r o v i s i o n s o f t h i s                             article.
Such d i s t r i b u t i o n s h a l l remain i n e f f e c t f o r the r e s t o f t h n t                             j a r , except as
provided          f o r i n paragraph 5 o f t h i s                    articl...
 ---pagebreak---                                                                                TD/JUTE/EX/R.4
                                                                                page 7
5.        Whenever t h e membership o f t h e O r g a n i z a t i o n changes o r when any member has i t s
v o t i n g r i g h t s suspended o r r e s t o r e d under any p r o v i s i o n o f t h i s Agreement, t h e C o u n c i l
s h a l l r e d i s t r i b u t e the votes w i t h i n the a f f e c t e d category             o r c a t e g o r i e s o f members
i n accordance w i t h t h e p r o v i s i o n s o f t h i s a r t i c l e .              The.;Council s h a l l d e c i d e t h e
date on which t h e r e d i s t r i b u t i o n o f v o t e s s h a l l become e f f e c t i v e .
6.      . There s h a l l be no f r a c t i o n a l       votes.
7.        I n r o u n d i n g t o t h e n e a r e s t whole v o t e , any f r a c t i o n l e s s than 0.5 s h a l l be
rounded downward and any f r a c t i o n g r e a t e r .than o r e q u a l t o 0.5 s h a l l be rounded
upward                                                                                ;
                                                             A r t i c l e 11
                                                 Voting, procedure o f t h e C o u n c i l .
1,        Each member s h a l l be e n t i t l e d t o c a s t t h e number o f v o t e s i t h o l d s and no member
s h a l l be e n t i t l e d t o d i v i d e i t s v o t e s .       A member may, however, c a s t d i f f e r e n t l y from
such votes any v o t e s which i t . i s a u t h o r i z e d , t o c a s t under paragraph 2 o f t h i s                         article.
2.        By w r i t t e n n o t i f i c a t i o n t o t h e Chairman o f t h e C o u n c i l , any e x p o r t i n g member
may a u t h o r i z e any o t h e r e x p o r t i n g member, and any i m p o r t i n g member may a u t h o r i z e any
o t h e r i m p o r t i n g member, t o r e p r e s e n t      i t s i n t e r e s t s : and t o c a s t i t s v o t e s a t any
meeting o r s e s s i o n o f t h e C o u n c i l .
3.         A member a u t h o r i z e d by a n o t h e r member t o c a s t t h e v o t e s h e l d by t h e a u t h o r i z i n g
member under a r t i c l e 10 s h a l l , . c a s t such v o t e s i n accordance w i t h t h e i n s t r u c t i o n s o f
the. a u t h o r i z i n g member.
4.        When a b s t a i n i n g , a member s h a l l be.: deemed n o t t o have c a s t i t s v o t e s .
                                                             A r t i c l e 12
                                   D e c i s i o n s and recommendations o f t h e C o u n c i l
 1.        The C o u n c i l s h a l l endeavour t o take a l l d e c i s i o n s , and make a l l recommendations,
 by consensus*.              I f a consensus i s , n o t a r r i v e d a t , a l l d e c i s i o n s o f t h e C o u n c i l     shall
 be taken, and a l l recommendations s h a l l be made, by a s i m p l e d i s t r i b u t e d m a j o r i t y
 v o t e , u n l e s s t h i s Agreement p r o v i d e s f o r a s p e c i a l v o t e .
 2.        Where a member a v a i l s i t s e l f o f t h e p r o v i s i o n s o f a r t i c l e 11, paragraph 2, and
 i t s votes a r e c a s t a t a meeting o f t h e C o u n c i l , such member s h a l l , f o r . t h e purpose
 o f paragraph 1 o f t h i s a r t i c l e , be c o n s i d e r e d             as p r e s e n t and v o t i n g .
 3.        A l l d e c i s i o n s and recommendations Of t h e C o u n c i l s h a l l be c o n s i s t e n t w i t h the
 p r o v i s i o n s o f t h i s Agreement.
 ---pagebreak---      TD/JUTE/EX/R.4
     page 3
                                                                     Article         15
                                                             Quorum f o r the C o u n c i l
    1.        The quorum f o r any meeting o f the C o u n c i l s h a l l be the presence o f a m a j o r i t y
    of e x p o r t i n g members and a m a j o r i t y o f i m p o r t i n g members, p r o v i d e d that: such members
    hold a t l e a s t two t h i r d s o f the t o t a l votes i n t h e i r r e s p e c t i v e categories,,
   2.         I f t h e r e i s no quorum i n accordance w i t h paragraph 1 o f t h i s a r t i c l e on the                                day
   f i x e d f o r the meeting and on the f o l l o w i n g day, the quorum on the t h i r d day                                       and
   t h e r e a f t e r s h a l l be the presence o f a m a j o r i t y o f e x p o r t i n g members and a m a j o r i t y o f
   i m p o r t i n g members, p r o v i d e d t h a t such members h o l d a m a j o r i t y o f the t o t a l votes i n
   their respective categories.
     :
   3v        Representation              i n accordance w i t h a r t i c l e 11,           paragraph 2, s h a l l be              considered
   as presence.
                                                                    Article         14
                                               Co-operation         with other organizations
  1.         The O r g a n i z a t i o n s h a l l , t o the maximum e x t e n t p o s s i b l e , r e l y upon and f u l l y               .
  utilize         the f a c i l i t i e s ,     s e r v i c e s and e x p e r t i s e o f o r g a n i z a t i o n s such as      the
  Food and A g r i c u l t u r e O r g a n i z a t i o n o f the U n i t e d N a t i o n s            (FAO), the I n t e r n a t i o n a l
  Trade'Centre UNCTAD/GATT ( I T C ) , the U n i t e d N a t i o n s I n d u s t r i a l Development O r g a n i z a t i o n
  and the U n i t e d N a t i o n s Conference on Trade and Development (UNCTAD).                                           In the.event
  that t h e i r f a c i l i t i e s , s e r v i c e s and e x p e r t i s e a r e c o n s i d e r e d         by the C o u n c i l t o be
 d e f i c i e n t or inadequate f o r the e f f e c t i v e f u n c t i o n i n g o f the O r g a n i z a t i o n , the C o u n c i l
 s h a l l d e c i d e , where c i r c u m s t a n c e s         so warrant,         t o take the necessary             a c t i o n t o have the
 work c a r r i e d out e f f e c t i v e l y , i f n e c e s s a r y          by the O r g a n i z a t i o n on i t s . own.
 2."     The       C o u n c i l s h a l l make whatever arrangements a r e a p p r o p r i a t e f o r c o n s u l t a t i o n
 or c o - o p e r a t i o n w i t h the          United N a t i o n s and i t s organs, i n p a r t i c u l a r UNCTAD, and
 with FAO          and such o t h e r s p e c i a l i z e d a g e n c i e s       o f the U n i t e d N a t i o n s and   ;    intergovernmental
 and non-governmental o r g a n i z a t i o n s as may                      be     appropriate.
 3.        The C o u n c i l , b e a r i n g i n mind the p a r t i c u l a r r o l e o f UNCTAD i n the f i e l d                     of
i n t e r n a t i o n a l commodity t r a d e , s h a l l , as a p p r o p r i a t e , keep t h a t o r g a n i z a t i o n            informed
of i t s a c t i v i t i e s and programmes o f work.
                                                                    Article        15
                                                            Admission o f        observers
          The     C o u n c i l may     i n v i t e any non-member c o u n t r y or any o f the o r g a n i z a t i o n s
r e f e r r e d t o i n a r t i c l e 14          and a r t i c l e 31   concerned w i t h i n t e r n a t i o n a l t r a d e i n j u t e
and j u t e p r o d u c t s o r w i t h the j u t e i n d u s t r y t o a t t e n d as o b s e r v e r s any                o f the meetings
of the C o u n c i l .
 ---pagebreak---                                                                                TD/JUTE/EX/R.A
                                                                                page 9
                                                                  A r t i c l e 16
                                                 Executive          D i r e c t o r and s t a f f
1.        The C o u n c i l s h a l l , by s p e c i a l v o t e , a p p o i n t t h e E x e c u t i v e           Director.
2.        The terms and c o n d i t i o n s o f appointment o f t h e E x e c u t i v e                         D i r e c t o r s h a l l be
determined by t h e C o u n c i l .
3.        The E x e c u t i v e   D i r e c t o r s h a l l be t h e c h i e f a d m i n i s t r a t i v e o f f i c e r o f t h e
Organization            and s h a l l be r e s p o n s i b l e        t o t h e C o u n c i l f o r t h e a d m i n i s t r a t i o n and
operation           o f t h i s Agreement i n accordance w i t h t h e d e c i s i o n s o f t h e C o u n c i l .
4.        The E x e c u t i v e   D i r e c t o r s h a l l a p p o i n t t h e s t a f f i n accordance w i t h t h e regulations
e s t a b l i s h e d by t h e C o u n c i l .        The C o u n c i l s h a l l a t i t s f i r s t s e s s i o n d e c i d e on t h e
number o f e x e c u t i v e        and p r o f e s s i o n a l s t a f f t h e E x e c u t i v e      D i r e c t o r may a p p o i n t f o r the
i n i t i a l five-year, period.                  Such s t a f f s h a l l be r e c r u i t e d i n s t a g e s .              Any changes i n
the number o f e x e c u t i v e            and p r o f e s s i o n a l s t a f f s h a l l be d e c i d e d by t h e C o u n c i l by
s p e c i a l vote.         The s t a f f s h a l l be r e s p o n s i b l e         t o the Executive              Director.
5.        Neither the Executive                   D i r e c t o r n o r any member o f t h e s t a f f s h a l l have any
f i n a n c i a l i n t e r e s t i n the j u t e i n d u s t r y or trade, o r associated                           commercial a c t i v i t i e s .
6.        I n t h e performance o f t h e i r d u t i e s , t h e E x e c u t i v e                D i r e c t o r and o t h e r s t a f f s h a l l
not seek o r r e c e i v e i n s t r u c t i o n from any member o r from any o t h e r a u t h o r i t y                                 external
to the Organization.                     They s h a l l r e f r a i n from any a c t i o n which might r e f l e c t on t h e i r
p o s i t i o n s as i n t e r n a t i o n a l o f f i c i a l s u l t i m a t e l y r e s p o n s i b l e   t o the C o u n c i l .       Each
member s h a l l r e s p e c t         the e x c l u s i v e l y i n t e r n a t i o n a l character            o f the r e s p o n s i b i l i t i e s
of    the Executive             Director         and other         staff       and s h a l l  n o t seek        to influence           them   i n the
discharge o f t h e i r             responsibilities.
 ---pagebreak--- TD/JUTE/EX/R.4
page 10
                                            CHAPTER V - PRIVILEGES AND IMMUNITIES
                                                                 A r t i c l e 1?
                                                 P r i v i l e g e s and Immunities
1.        The O r g a n i z a t i o n s h a l l have l e g a l p e r s o n a l i t y .        I t s h a l l i n p a r t i c u l a r have
the c a p a c i t y t o c o n t r a c t , a c q u i r e and d i s p o s e o f movable and immovable p r o p e r t y
ar.d t o i n s t i t u t e l e g a l     proceedings.
2.        The O r g a n i z a t i o n s h a l l , as soon as p o s s i b l e a f t e r t h e e n t r y into, f o r c e o f
t h i s .Agreement, seek t o conclude w i t h t h e Government o f t h e country i n which t h e
headquarters           o f t h e O r g a n i z a t i o n i s t o be s i t u a t e d ( h e r e i n a f t e r r e f e r r e d t o as "the
host Government") an agreement ( h e r e i n a f t e r r e f e r r e d t o as "the Headquarters
Agreement") r e l a t i n g t o such s t a t u s , p r i v i l e g e s and immunities                           o f the Organization, .
of i t s E x e c u t i v e D i r e c t o r , i t s s t a f f and e x p e r t s , and o f d e l e g a t e s o f members, as
are reasonably necessary                    f o r t h e purpose o f d i s c h a r g i n g t h e i r f u n c t i o n s .
3.        Pending t h e c o n c l u s i o n o f t h e Headquarters Agreement r e f e r r e d t o i n paragraph 2
of t h i s a r t i c l e , t h e O r g a n i z a t i o n s h a l l request t h e host Government t o g r a n t , w i t h i n
t h e . l i m i t s o f i t s n a t i o n a l l e g i s l a t i o n , exemption from t a x a t i o n on remuneration                     paid
by t h e O r g a n i z a t i o n t o i t s employees, and on t h ? a s s e t s , income and o t h e r p r o p e r t y
of the O r g a n i z a t i o n .
4.        The O r g a n i z a t i o n may a l s o c o n c l u d e , w i t h one o r more c o u n t r i e s , agreements t o
be approved by t h e C o u n c i l r e l a t i n g t o such p r i v i l e g e s and immunities as may be
iece3sary f o r t h e proper f u n c t i o n i n g o f t h i s Agreement.
5. , I f t h e headquarters                 o f t h e O r g a n i z a t i o n i s moved t o another               country which i s
a member o f t h e O r g a n i z a t i o n , t h a t member s h a l l , as soon as p o s s i b l e , conclude
with t h e O r g a n i z a t i o n a headquarters                 agreement t o be approved by t h e C o u n c i l .
6.       The Headquarters Agreement s h a l l be Independent o f t h i s Agreement.                                             It shall,
however, t e r m i n a t e :
          (a)      By agreement between t h e host Government and t h e O r g a n i z a t i o n ;
          (b)      In t h e event o f the headquarters                        o f t h e O r g a n i z a t i o n being moved from
the country o f t h e host Government;                           or
          (c)      In t h e event o f t h e O r g a n i z a t i o n c e a s i n g t o e x i s t .
 ---pagebreak---                                                                                TD/JUTE/BX/M
                                                                                page 11
                                                          CHAPTER VI - FINANCE
                                                                   Article        18
                                                           F i n a n c i a l accounts
1.        There s h a l l be e s t a b l i s h e d two a c c o u n t s :
           (a)      The A d m i n i s t r a t i v e Account;                and
           (b)      The S p e c i a l       Account.
2.     . The E x e c u t i v e       D i r e c t o r s h a l l be r e s p o n s i b l e f o r the a d m i n i s t r a t i o n o f these
accounts and t h e C o u n c i l s h a l l make p r o v i s i o n i n i t s r u l e s o f procedure t h e r e f o r .
                                                                   A r t i c l e 19    '  ·
                                                             Forms o f payment
1.        C o n t r i b u t i o n s t o the A d m i n i s t r a t i v e Account s h a l l , be payable i n f r e e l y             usable
c u r r e n c i e s and s h a l l be exempt from f o r e i g n exchange                         restrictions.
2.         F i n a n c i a l c o n t r i b u t i o n s t o the S p e c i a l Account s h a l l be payable i n f r e e l y
u s a b l e c u r r e n c i e s and s h a l l be exempt from f o r e i g n exchange                       restrictions.
3-         The C o u n c i l may         a l s o d e c i d e to a c c e p t o t h e r forms o f c o n t r i b u t i o n s t o the
S p e c i a l Account, i n c l u d i n g s c i e n t i f i c and t a c h n i c a l equipment o r manpower, t o meet
the requirements o f approved                            projects.
                                                                    Article        20
                                                A u d i t and p u b l i c a t i o n o f a c c o u n t s
1.         The C o u n c i l s h a l l a p p o i n t a u d i t o r s f o r the purpose o f a u d i t i n g i t s book3 o f
account.
2.         An i n d e p e n d e n t l y a u d i t e d statement o f th-3 A d m i n i s t r a t i v e Account and o f the
 S p e c i a l Account s h a l l be made a v a i l a b l e t o members as soon as p o s s i b l e a f t e r the
 c l o s e of each j u t e y e a r , but not l a t e r than s i x months a f t e r t h a t d a t e , and                            be
 considered            f o r a p p r o v a l by the C o u n c i l a t i t s n e x t s e s s i o n , as a p p r o p r i a t e .       A
 summary o f the a u d i t e d a c c o u n t s and b a l a n c e sheet s h a l l t h e r e a f t e r be                       published.
                                                                     Article       21
                                                          Administrative             Account
 1.         The expenses            necessary f o r tho a d m i n i s t r a t i o n o f t h i s Agreement s h a l l                be
 brought i n t o the A d m i n i s t r a t i v e Account and s h a l l be met by annual c o n t r i b u t i o n s
 from members i n accordance w i t h t h e i r r e s p e c t i v e c o n s t i t u t i o n a l o r i n s t i t u t i o n a l '
 procedures assessed i n accordance w i t h paragraphs 3,                                       4 and 5 o f t h i s          article.
 2.         The expenses o f delegations.-to t h e C o u n c i l , the Committee on P r o j e c t s and t o
 the committees                 and working groups r e f e r r e d t o i n a r t i c l e 3»               paragraph 2,           shall  be
 met by the members concerned,                               In cases where a member r e q u e s t s s p e c i a l s e r v i c e s
  from the O r g a n i z a t i o n ,           the C o u n c i l d h a l l r e q u i r e t h a t member t o pay the c o s t s o f
 such s e r v i c e s .
 ---pagebreak--- TD/JUTE/EX/R.4
page 12
3«         During t h e second h a l f o f each f i n a n c i a l y e a r , t h e C o u n c i l s h a l l approve the
a d m i n i s t r a t i v e budget o f t h e O r g a n i z a t i o n . f o r t h e f o l l o w i n g f i n a n c i a l year and
s h a l l a s s e s s t h e c o n t r i b u t i o n o f ea_ch member t o t h a t budget.
4.         The c o n t r i b u t i o n o f each member t o t h e a d m i n i s t r a t i v e budget f o r each f i n a n c i a l
year s h a l l be i n t h e p r o p o r t i o n which t h e number o f i t s v o t e s a t t h e time t h e
a d m i n i s t r a t i v e budget f o r t h a t f i n a n c i a l y e a r i s approved bears t o t h e t o t a l votes
of a l l the members.' I n a s s e s s i n g c o n t r i b u t i o n s , t h e v o t e s o f each member s h a l l be
                                                                                1
c a l c u l a t e d without         regard t o t h e s u s p e n s i o n o f any member's v o t i n g r i g h t s or any
r e d i s t r i b u t i o n o f votes r e s u l t i n g t h e r e f r o m .
5.        The i n i t i a l c o n t r i b u t i o n o f any member j o i n i n g t h e O r g a n i z a t i o n           a f t e r the entry
i n t o f o r c e o f t h i s Agreement s h a l l bë a s s e s s e d by t h e C o u n c i l on t h e b a s i s Of t h e
number o f v o t e s t o be h e l d by i t and t h e p e r i o d r e m a i n i n g i n t h e c u r r e n t                       financial
year, but t h e assessment made upon o t h e r members f o r t h e c u r r e n t f i n a n c i a l year
s h a l l not thereby be a l t e r e d .
6.        C o n t r i b u t i o n s t o t h e f i r s t a d m i n i s t r a t i v e budget s h a l l become due on a date
to be decided               by t h e C o u n c i l a t i t s f i r s t s e s s i o n .     C o n t r i b u t i o n s t o subsequent
a d m i n i s t r a t i v e budgets s h a l l become due on t h e f i r s t day o f each f i n a n c i a l                          year.
C o n t r i b u t i o n s o f members i n r e s p e c t o f t h e f i n a n c i a l y e a r i n which they j o i n the
O r g a n i z a t i o n s h a l l be due on t h e date on which t h e y become members.
7.        I f a member has n o t p a i d i t s f u l l c o n t r i b u t i o n t o the a d m i n i s t r a t i v e budget
w i t h i n two months a f t e r such c o n t r i b u t i o n becomes due i n accordance w i t h paragraph 6
of t h i s a r t i c l e , t h e E x e c u t i v e     D i r e c t o r s h a l l request      t h a t member t o make payment as
q u i c k l y as p o s s i b l e .      I f the member has s t i l l               not p a i d i t s c o n t r i b u t i o n w i t h i n two
months a f t e r such r e q u e s t ,            i t s h a l l be requested           t o s t a t e t h e reasons f o r i t s
i n a b i l i t y to.maka payment.                 I f a t t h e e x p i r y o f s i x months from t h e due date o f
c o n t r i b u t i o n t h a t member has s t i l l           not p a i d i t s c o n t r i b u t i o n , i t s v o t i n g r i g h t s
s h a l l be suspended u n l e s s the C o u n c i l , by s p e c i a l v o t e , d e c i d e s                    otherwise.         I f that
member s t i l l          fails     t o pay i t s c o n t r i b u t i o n a t t h e . e x p i r y o f a p e r i o d o f one month
from t h e date o f s u s p e n s i o n o f i t s v o t i n g r i g h t s , a l l r i g h t s o f t h a t member under
t h i 3 Agreement s h a l l be suspended by the C o u n c i l u n t i l such time as i t has p a i d i n
f u l l i t s c o n t r i b u t i o n , u n l e s s t h e C o u n c i l by s p e c i a l vote d e c i d e s           otherwise.
8.        A member whose r i g h t s have been suspended under paragraph 7 o f t h i s a r t i c l e
s h a l l i n p a r t i c u l a r remain l i a b l e t o pay i t s c o n t r i b u t i o n .
 ---pagebreak---                                                                                TD/.7JTE/AIX/TI./.
                                                                                page 13
                                                               Article       22
                                                           S p e c i a l Account
1.        There s h a l l be e s t a b l i s h e d two sub-accounts under t h e S p e c i a l Account:
           (a)     The P r e - P r o j e c t Sub-Account;               and
           (b)     The P r o j e c t Sub-Account.
2.        A l l expenditures            f o r the P r e - P r o j e c t Sub-Account s h a l l be reimbursed from t h e
P r o j e c t S u b a c c o u n t i f p r o j e c t s a r e subsequently                 approved and funded.                 I f within
s i x months o f t h e e n t r y i n t o f o r c e o f t h i s Agreement the C o u n c i l does n o t r e c e i v e
any funds f o r t h e P r e - P r o j e c t Sub-Account, i t s h a l l review t h e s i t u a t i o n and take
appropriate a c t i o n .                                                                                ,
3.         A l l r e c e i p t s p e r t a i n i n g t o s p e c i f i c i d e n t i f i a b l e p r o j e c t s s h a l l be brought
i n t o t h e S p e c i a l Account.              A l l expenditures           i n c u r r e d on such p r o j e c t s , i n c l u d i n g
remuneration and t r a v e l expenses o f c o n s u l t a n t s and e x p e r t s , s h a l l be charged t o
the S p e c i a l Account.
4.         The p o s s i b l e sources o f f i n a n c ; f o r t h e S p e c i a l Account 3 h a l l b e :
           (a)     The Second Account o f t h e Common Fund f o r Commodities, when e s t a b l i s h e d ;
           (b)     Regional and i n t e r n a t i o n a l f i n a n c i a l i n s t i t u t i o n s namely, t h e U n i t e d             Nations
Development Programme, the World Bank, t h e Asian Development Bank, t h e Int'jr--American
Development Bank and the A f r i c a n Development Bank, e t c . ;                                      and
           (c)     Voluntary c o n t r i b u t i o n s .
5·         The C o u n c i l s h a l l , by s p e c i a l v o t e , e s t a b l i s h terms and c o n d i t i o n s on which
i t would, when and where a p p r o p r i a t e , sponsor p r o j e c t s f o r l o a n f i n a n c i n g , where
a member or members have v o l u n t a r i l y assumed f u l l o b l i g a t i o n s and r e s p o n s i b i l i t i e s
f o r such l o a n s .          The O r g a n i z a t i o n s h a l l have no o b l i g a t i o n s f o r 3uch l o a n s .
6.         The C o u n c i l may nominate and sponsor any e n t i t y w i t h t h e consent o f t h a t e n t i t y ,
i n c l u d i n g a member or members, t o r e c e i v e l o a n s f o r t h e f i n a n c i n g o f approved
 p r o j e c t s and t o undertake a l l the o b l i g a t i o n s i n v o l v e d , e x c e p t t h a t the O r g a n i z a t i o n
 s h a l l r e s e r v e t o i t s e l f t h e r i g h t t o monitor t h e use o f r e s o u r c e s and t o f o l l o w up
 on the implementation                   o f p r o j e c t s so f i n a n c e d .       However, t h e O r g a n i z a t i o n s h a l l not
 be r e s p o n s i b l e f o r guarantees g i v e n by i n d i v i d u a l members o r o t h e r                         entities.
 7.        Mo member s h a l l bo r e s p o n s i b l e by reason o f i t s membership i n t h e O r g a n i z a t i o n
 f o r any l i a b i l i t y a r i s i n g from b o r r o w i n g o r l e n d i n g by any o t h e r member o r e n t i t y
 i n connectioa with p r o j e c t s .
 3.        7r, the- .uvev.-t t h a t <· .·! u n t a r y unearmarked funds a r e o f f e r e d t o t h e O r g a n i z a t i o n ,
 the. C o u n c i l v,ay accept such funds.                       Such funds may be u t i l i z e d f o r p r e - p r o j e c t
a c t i v i t i e s as w e l l as f o r approved p r o j e c t s .
 ---pagebreak---   ID/JTJTE/EX/R.4
 page 14
 9.         The E x e c u t i v e    D i r e c t o r s h a l l endeavour t o seek, on such terms and c o n d i t i o n s
 as t h e C o u n c i l may d e c i d e , adequate and assured f i n a n c e f o r p r o j e c t s approved by
 the      Council.
 10.        The r e s o u r c e s o f the S p e c i a l Account s h a l l be used o n l y f o r approved                         projects
 or f o r p r e - p r o j e c t a c t i v i t i e s .
 11.       Contributions             f o r s p e c i f i e d approved p r o j e c t s s h a l l be used o n l y f o r the
 p r o j e c t s f o r which th.^y wsre o r i g i n a l l y i n t e n d e d u n l e s s o t h e r w i s e d e c i d e d by the
 Council         i n agreement w i t h t h e c o n t r i b u t o r .          A f t e r the c o m p l e t i o n o f a p r o j e c t , the
Organization             3 h a l l r e t u r n t o each c o n t r i b u t o r f o r s p e c i f i c     p r o j e c t s t h e balance o f
any      funds r e m a i n i n g pro r a t a t o each c o n t r i b u t o r ' s share i n t h e t o t a l o f t h e
c o n t r i b u t i o n s o r i g i n a l l y made a v a i l a b l e f o r f i n a n c i n g t h a t p r o j e c t , u n l e s s o t h e r w i s e
agreed to* by'the c o n t r i b u t o r .
12.       The C o u n c i l may, whan a p p r o p r i a t e ,        r e v i e w t h e f i n a n c i n g o f the S p e c i a l Account.
 ---pagebreak---                                                                                ED/.nJTE/EX/il./t .
                                                                                pag'e 15
                                            CHAPTER V I I - OPERATIONAL ACTIVITIES
                                                                A r t i c l e 25
                                                                  Projects
1.        I n o r d e r t o a c h i e v e t h e o b j e c t i v e s s e t out i n a r t i c l e 1, the C o u n c i l                 shall,
on a c o n t i n u i n g b a s i s and i n accordance w i t h t h e p r o v i s i o n s o f a r t i c l e 14»
paragraph 1, i d e n t i f y , arrange f o r t h e p r e p a r a t i o n and i m p l e m e n t a t i o n o f , and, w i t h
a view t o e n s u r i n g t h e i r e f f e c t i v e n e s s , f o l l o w up p r o j e c t s i n t h e f i e l d s o f r e s e a r c h ,
and      development, market promotion and cost r e d u c t i o n and o t h e r r e l e v a n t                                   projects
approved by.the C o u n c i l .
 2. . The E x e c u t i v e D i r e c t o r s h a l l submit p r o p o s a l s                on p r o j e c t s r e f e r r e d t o i n
paragraph 1 o f t h i s a r t i c l e t o the Committee on P r o j e c t s .                                  Such p r o p o s a l s   s h a l l be
 c i r c u l a t e d to a l l members a t l e a s t two months b e f o r e                        the s e s s i o n o f t h e Committee
 at which they a r e t o be c o n s i d e r e d .                    On t h e "basis o f t h e s e p r o p o s a l s , t h e Committee
 s h a l l d e c i d e w h i c h p r e - p r o j e c t a c t i v i t i e s , s h a l l "be u n d e r t a k e n .         Such p r e - p r o j e c t
 a c t i v i t i e s s h a l l be arranged by the E x e c u t i v e D i r e c t o r i n accordance w i t h r u l e s and
 r e g u l a t i o n s t o be adopted by the C o u n c i l .
 3«        The r e s u l t s o f t h e p r e - p r o j e c t a c t i v i t i e s i n c l u d i n g d e t a i l e d c o s t i n g s , p o s s i b l e
 b e n e f i t s , d u r a t i o n , l o c a t i o n and p o s s i b l e e x e c u t i n g a g e n c i e s ,       s h a l l be submitted by
 the-Executive               D i r e c t o r t o t h e Committee a f t e r c i r c u l a t i o n           t o a l l members a t l e a s t
 two months b e f o r e              t h e s e s s i o n o f t h e Committee a t which they a r e t o be                           considered.
  4.        The Committee s h a l l c o n s i d e r t h e r e s u l t s o f such p r e - p r o j e c t a c t i v i t i e s and
 make recommendations on t h e p r o j e c t s t o t h e C o u n c i l .
  5.        The C o u n c i l s h a l l c o n s i d e r t h e recommendations and s h a l l , "by s p e c i a l v o t e ,
  d e c i d e on the proposed p r o j e c t s f o r f i n a n c i n g i n accordance w i t h a r t i c l e 22 and
  a r t i c l e 27·
  6.        The C o u n c i l s h a l l d e c i d e on t h e r e l a t i v e          p r i o r i t i e s of projects.
  7.        I n i t i a l l y , t h e C o u n c i l s h a l l g i v e p r i o r i t y to p r o j e c t s prepared by FAQ and ITC
  f o r the Preparatory                   Meetings on J u t e and J u t e P r o d u c t s under t h e I n t e g r a t e d                  Programme
   f o r Commodities and t o such o t h e r v i a b l e p r o j e c t s as t h e C o u n c i l may approve.
  8.         The C o u n c i l s h a l l o b t a i n the a p p r o v a l         o f a member b e f o r e a p p r o v i n g a p r o j e c t i n
   the t e r r i t o r y o f t h a t member.
   9.        The C o u n c i l may, by s p e c i a l v o t e , t e r m i n a t e             i t s s p o n s o r s h i p o f any p r o j e c t .
 ---pagebreak--- TO/JUTE/Ei/H.A
page 16
                                                                Article        24
                                                     Research and           development
          P r o j e c t s r e l a t i n g to r e s e a r c h and development should i n t e r a l i a be aimed a t :
           (a)       Improving a g r i c u l t u r a l p r o d u c t i v i t y and f i b r e       quality;
           (b)       Improving m a n u f a c t u r i n g p r o c e s s e s f o r . e x i s t i n g and new      products;
           (c)       F i n d i n g new    end-uses and i m p r o v i n g e x i s t i n g p r o d u c t s .
                                                                 Article       25
                                                             Market       promotion
           P r o j e c t s r e l a t i n g t o market promotion               should i n t e r a l i a be aimed a t the
maintenance and expansion o f markets f o r e x i s t i n g p r o d u c t s and f i n d i n g markets f o r
new p r o d u c t s .                      .       .        , ' .
                                                                 Article        26
                                                              Cost r e d u c t i o n
           The p r o j e c t s r e l a t i n g to c o s t r e d u c t i o n s h o u l d , i n t e r . a l i a , be aimed a t , ' i n
 so f a r as a p p r o p r i a t e , i m p r o v i n g p r o c e s s e s and t e c h n i q u e s r e l a t i n g to a g r i c u l t u r a l
' p r o d u c t i v i t y and f i b r e q u a l i t y , as w e l l as improvement o f processes and                       techniques
 r e l a t i n g to l a b o u r , ' m a t e r i a l end c a p i t a l c o s t s i n the j u t e m a n u f a c t u r i n g i n d u s t r y
 and d e v e l o p i n g and m a i n t a i n i n g , f o r the use o f members, i n f o r m a t i o n on the most
 e f f i c i e n t processes and t e c h n i q u e s c u r r e n t l y av.ailable to the j u t e economy.
                                                                 A r t i c l e 27 •
                                              C r i t e r i a f o r approval of p r o j e c t s
           A p p r o v a l o f p r o j e c t s by the C o u n c i l s h a l l be based on the f o l l o w i n g            criteria!
            (a)       'They s h a l l have the p o t e n t i a l o f b e n e f i t i n g , a t p r e s e n t o r i n the f u t u r e ,
 more than one e x p o r t i n g member and tee o f b e n e f i t t o the j u t e economy as a whole;
            (b)       They s h a l l be r e l a t e d to the maintenance o r expansion o f i n t e r n a t i o n a l
 t r a d e i n j u t e and          jute products;
            (c)       They s h a l l o f f e r p r o s p e c t s f o r f a v o u r a b l e economic r e s u l t s i n r e l a t i o n
  to c o s t s i n the s h o r t term o r i n the l o n g term;
            (d)       They s h a l l be designed to be c o n s i s t e n t w i t h the size, o f the i n t e r n a t i o n a l
 t r a d e i n j u t e and          jute products;
            (e)       They s h a l l have the p o t e n t i a l f o r i m p r o v i n g the g e n e r a l c o m p e t i t i v e n e s s
  o r market p r o s p e c t s o f j u t e and               jute products.
 ---pagebreak---                                                                                TD/JUTE/EX/R.4
                                                                                page 17
                                                             A r t i c l e 28
                                                      Committee on P r o j e c t s
1.       A Committee on P r o j e c t s { h e r e i n a f t e r r e f e r r e d . t o as "the Committee") i s
hereby e s t a b l i s h e d .          I t s h a l l be r e s p o n s i b l e t o , and work under t h e g e n e r a l
d i r e c t i o n o f , the C o u n c i l .                                                                i
2.        P a r t i c i p a t i o n i n t h e Committee s h a l l be open t o a l l members.                   The r u l e s o f
procedure as w e l l as t h e d i s t r i b u t i o n o f v o t e s and v o t i n g procedure o f t h e
Committee s h a l l be those o f t h e C o u n c i l i c a t a t i s mutandis.                        The Committee s h a l l ,
unless i t decides otherwise,                       meet f o u r t i m e s a y e a r o r a t t h e r e q u e s t o f t h e
Council.
3.        The f u n c t i o n s o f t h e Committee s h a l l be:
           {&}      To c o n s i d e r and t e c h n i c a l l y a p p r a i s e  and e v a l u a t e project proposals
r e f e r r e d t o i n a r t i c l e 23;                                                                    . '
           (b)      To d e c i d e on p r e - p r o j e c t a c t i v i t i e s ; and
           (c)      To make recommendations t o t h e C o u n c i l r e l a t i n g t o p r o j e c t s .
 ---pagebreak--- TD/JUTE/EX/R.4
page 18
                CHAPTER V I I I - RELATIONSHIP WITH THE COMMON FUND FOR COMMODITIES
                                                         A r t i c l e 29
                        R e l a t i o n s h i p w i t h the Common Fund f o r Commodities
         When the Common Fund becomes o p e r a t i o n a l , the O r g a n i z a t i o n 3 h a l l take full
advantage of the f a c i l i t i e s of the 'Common Fund a c c o r d i n g to the p r i n c i p l e s s e t
o u t - i n the Agreement e s t a b l i s h i n g the Common Fund f o r Commodities.
 ---pagebreak---                                                                                TD/JUTE/EX/R.4
                                                                                page  1$
                            CHAPTER IX - CONSIDERATION OF IMPORTANT ISSUES
                                    CONCERNING JUTE AND JUTE PRODUCTS
                                                      A r t i c l e 50
                               Consideration o f s t a b i l i z a t i o n , competition
                                    w i t h synthetics and other issues
1.        The Council s h a l l continue consideration of the questions of s t a b i l i z a t i o n of
p r i c e s and supplies of. jute and jute products f o r export with a view to f i n d i n g
solutions therefor.           Following such consideration, any i.solution agreed upon that
e n t a i l s measures not already e x p l i c i t l y provided f o r i n t h i s Agreement may only be
implemented by an amendment of t h i s Agreement pursuant to a r t i c l e 42.
2.        The Council s h a l l consider issues r e l a t i n g to competition between jute and jute-
products on the one hand, and synthetics and s u b s t i t u t e s on the other.
3.        The Council s h a l l make arrangements f o r the continuing consideration o f other •
important issues relevant to jute and jute products.
 ---pagebreak---       TD/JTJTE/EX/R.4
      page 20
                               .. CHAPTER X - STATISTICS, STUDIES AMD INFORMATION
                                                                   A r t i c l e 31
                                          S t a t i s t i c s and studies and information
     1.        The Council s h a l l e s t a b l i s h close, r e l a t i o n s h i p s with appropriate i n t e r n a t i o n a l
- organizations, i n p a r t i c u l a r FAO, i n order to help ensure the a v a i l a b i l i t y of
     recent and r e l i a b l e data and information on a l l f a c t o r s a f f e c t i n g jute and jute product
    The Organization s h a l l c o l l e c t , c o l l a t e and as necessary p u b l i s h such s t a t i s t i c a l
    information on production, trade, supply, stocks, consumption and p r i c e s of jute, jute
    products, synthetics and s u b s t i t u t e s as i s necessary f o r the operation of t h i s
    Agreement.
    2.       Members s h a l l f u r n i s h s t a t i s t i c s and information w i t h i n a reasonable time to thé
   f u l l e s t extent possible not inconsistent with t h e i r n a t i o n a l l e g i s l a t i o n .
   3·        The Council s h a l l arrange to have studies undertaken of the trends and of the
   short- and long-term problems of the world jute economy.
   4·       The Council s h a l l ensure that no information published s h a l l prejudice the
  confidentiality         of the operations of persons o r companies producing, processing or
  marketing jute, jute products, synthetics and s u b s t i t u t e s .
                                                                A r t i c l e 32
                               Annual report and report on assessment and review
 1.        The Council s h a l l , w i t h i n s i x months o f the close of each jute year, publish an
 annual report on i t s a c t i v i t i e s and such other information as i t considers appropriate.
 2.        The Council s h a l l annually assess and review the world jute s i t u a t i o n and outlook,
 i n c l u d i n g the state of competition with synthetics and s u b s t i t u t e s , a.nd s h a l l inform
 members of the r e s u l t s of the review.
 3.       The review s h a l l be c a r r i e d out i n the l i g h t of information supplied by members
in r e l a t i o n to n a t i o n a l production, stocks, exports and imports, consumption and p r i c e s ,
of jute and jute products and synthetics and s u b s t i t u t e s and such other information as
may be a v a i l a b l e to the Council e i t h e r d i r e c t l y o r through the appropriate organizations
i n the United Nations system, i n c l u d i n g UNCTAD and FAO, and appropriate
intergovernmental and non-governmental organizations.
 ---pagebreak---                                                                                TD/JUTE/EX/R.4
                                                                                page 21 •
                                                CHAPTER X I - MISCELLANEOUS
                                                                A r t i c l e 55
                                        •• --. - Complaints.-and disputes
         Any complaint "that a member has f a i l e d to f u l f i l i t s o b l i g a t i o n under .this
Agreement and any dispute concerning the- i n t e r p r e t a t i o n o r a p p l i c a t i o n o f t h i s
Agreement s h a l l be referred to the Council f o r d e c i s i o n . Decisions of the Council
on these matters s h a l l be f i n a l and binding.
                                                                 A r t i c l e 54
                                             General o b l i g a t i o n s of members
1.        Members s h a l l f o r the duration o f t h i s Agreement use t h e i r best endeavours and
co-operate to promote the attainment of i t s objectives and to avoid a c t i o n i n
contradiction to them.
2.        Members undertake to accept as binding d e c i s i o n s of the Council under the
provisions of t h i s Agreement, and s h a l l seek to r e f r a i n from implementing measures
which would have the e f f e c t of l i m i t i n g or running counter to them.
                                                                  A r t i c l e 55
                                                      R e l i e f from obligations- • -
 1.       Where i t i s necessary on accciunt of exceptional circumstances                   o r emergency o r
 force majeure not expressly provided f o r i n t h i s Agreement, the Council may, by
 s p e c i a l vote, r e l i e v e a member o f an o b l i g a t i o n under t h i s Agreement i f i t i s
 s a t i s f i e d by an explanation from that member regarding the reasons why the o b l i g a t i o n
 cannot be met.
 2.        The Council, i n granting r e l i e f to a member under paragraph 1 of t h i s a r t i c l e ,
'shall state e x p l i c i t l y the terms and 'conditions on which, and the period f o r which,
 the member i s r e l i e v e d of such o b l i g a t i o n , and the reasons f o r which the r e l i e f i s
 granted.
                                                                   A r t i c l e 56
                                           D i f f e r e n t i a l and remedial measures
  1.       Developing importing members whose i n t e r e s t s are adversely a f f e c t e d by measures
  taken under t h i s Agreement may apply to the Council f o r appropriate d i f f e r e n t i a l and
  remedial measures.                The Council s h a l l consider taking appropriate measures i n
  accordance with paragraphs 3 and 4-of section I I I of r e s o l u t i o n 93 (IV) of the
  United Nations Conference on Trade and Development.
  2.        Without prejxidice to the i n t e r e s t s of other exporting members, the Council s h a l l ,
  i n a l l i t s a c t i v i t i e s , give s p e c i a l consideration to the needs of a p a r t i c u l a r l e a s t
  developed exporting member.
 ---pagebreak---   ^D/,TUTE/EX/R,4
  Page 22
                                                  CHAPTER X I I - PINAL PROVISIONS
                                                                    A r t i c l e 57
                                  Signature, r a t i f i c a t i o n , acceptance and approval
 1. ' This Agreement s h a l l be.open f o r signature at United Nations Headqua.rters
 from 3 January t o 30 June 1983 i n c l u s i v e by Governments i n v i t e d to the
 United Nations Conference on Jute and Jute Products, 1981.
 2.       Any Government r e f e r r e d to i n paragraph 1 of t h i s a r t i c l e may:
           (a)      At the time of signing t h i s Agreement, declare that by such signature
 i t expresses i t s consent t o be bound by this" Agreement;
           (b)      A f t e r signing t h i s Agreement, r a t i f y , accept or approve i t by the
 deposit of an instrument t o t h i s e f f e c t w i t h the deposita.ry.
                                                                    A r t i c l e 58
                                                                    Depositary
          The Secretary-General of the United Nations i s hereby designated a.s the
depositary of t h i s Agreement.
                                                                    A r t i c l e 59
                                            N o t i f i c a t i o n of p r o v i s i o n a l a p p l i c a t i o n
1.        A signatory Government which intends to r a t i f y , accept or approve t h i s
Agreement, or a Government f o r which the Council ha-s established conditions f o r
accession but which has not yet been able t o deposit i t s instrument, may, at any
time, n o t i f y the deposita.ry that i t w i l l apply t h i s Agreement p r o v i s i o n a l l y
e i t h e r when i t enters i n t o force i n accordance with a r t i c l e ' 40 or, i f i t i s
already i n f o r c e , at a s p e c i f i e d date.                        At the time of i t s n o t i f i c a t i o n of
p r o v i s i o n a l a p p l i c a t i o n , each Government s h a l l declare i t s e l f to be an exporting
member or an importing member.
2.        A Government which has n o t i f i e d under pa.ragraph 1 of .this a r t i c l e that i t
w i l l apply t h i s Agreement e i t h e r when t h i s Agreement enters i n t o force or, i f
t h i s Agreement i s already i n f o r c e , at. a s p e c i f i e d date s h a l l , from that time,
be a p r o v i s i o n a l member of the Organization, u n t i l i t deposits i t s instrument
of r a t i f i c a t i o n , approval, acceptance or accession and thus becomes a. member.
                                                                    A r t i c l e 40
                                                               Entry i n t o force          (Ltl^uh*«-M
1.        This Agreement s h a l l enter i n t o force/^on 1 J u l y 1983 o r on any date thereafter,
i f by that date three Governments accounting f o r at l e a s t 85 per cent of net exports
as set out i n annex A t o t h i s Agreement, and 20 Governments accounting f o r a.t l e a s t
65 per cent of net imports a.s set out i n annex B to t h i s Agreement have signed t h i s
Agreement pursuant to a r t i c l e 37, para.graph 2(a.), or have deposited t h e i r
instruments of r a t i f i c a t i o n , acceptance, approval or accession.
 ---pagebreak---                                                                                UTVJ77E/EX/R.4
                                                                                pS-Ct?  ... •
    2.       -Th+3 Agreement sha.il enter Lzxc farce p r e v l s i c n s l i y cn i J u l y                  or cn a.ry
    date therea.fter, i f by that date three Governments accounting f o r at lea.st
   85 per cent of net exports as set out i n annex A tø t h i s Agreement, and
    20 Governments a.ccounting f o r at l e a s t 65 per cent of net imports as set out
   i n annex B to t h i s Agreement, have signed t'.iis Agreement pursuant to a r t i c l e 37?
   paragraph 2(a), or have deposited t h e i r instruments of r a t i f i c a t i o n , a.cceptance
   or approvai, or have n o t i f i e d the depositary under a r t i c l e 39 that they w i l l
   a.pply t h i s Agreement          provisionally.
            I f the requirements f o r entry i n t o force under paragraph 1 o r pa.ragraph 2
   of   t h i s a r t i c l e have not been met on 1 January 1984> the Secretary-General of
  the United Nations s h a l l i h v i t e those Governments which ha.ve signed t h i s Agreement
  pursuant to a r t i c l e 37> paragraph 2(a), or ha.ve deposited instruments of ratifica.tion',
  a.cceptance or approvai, or have n o t i f i e d the depositary that they w i l l apply t h i s
  Agreement p r o v i s i o n a l l y , to meet at the e a r l i e s t time pra.cticable and to decide
  to put t h i s Agreement i n t o force p r o v i s i o n a l l y   or d e f i n i t i v e l y among themselves
  i n whole o r i n p a r t . V/hile t h i s Agreement i s i n force p r o v i s i o n a l l y under t h i s
 paragra.ph, those Governments which have decided to put t h i s Agreement i n t o force
 p r o v i s i o n a l l y among themselves i n whole or i n part s h a l l be p r o v i s i o n a l -members.
 Such Governments may meet to review the s i t u a t i o n a.nd decide whether t h i s
 Agreement s h a l l enter i n t o force d e f i n i t i v e l y among themselves, or continue i n
 force p r o v i s i o n a l l y , or terminate.
 4.       Por any Government that deposits i t s instrument of r a . t i f i c a t i o n , acceptance,
 approvai or accession a f t e r the entry i n t o force of t h i s Agreement, i t s h a l l
 enter i n t o force f o r tha.t Government on the date of such deposit.
 5.       The Secreta.ry-G'eheral of the United Na.tions s h a l l convene the f i r s t session
 of the Gouncil as soon a.s p o s s i b l e a f t e r the entry i n t o force of t h i s Agreement.
                                                  A r t i c l e 41
                                                    Accession
1.        This Agreement s h a l l be open f o r a.ccession by the Governments of a l l Sta.tes
                            -
upon conditi#»ns established by the Council, which s h a l l include a. time l i m i t f o r
the deposit of instruments of accession.                       The Council may, however, grant
extensions of time to Governments which are unable to deposit t h e i r instruments
of, accession by the time l i m i t set i n the conditions of a.ccession.
2.       Accession s h a l l be e f f e c t e d by the deposit of an instrument of accession
with the depositary.
 ---pagebreak---   TlJ/JDTE/EX/H.4
  page 24
                                                              A r t i c l e 42 .
                                                              Amendments
  1.       The Council may, by special vote, recommend an amendment of t h i s Agreement to
  the members.                                                        _,
  2.       The Council s h a l l f i x a. date by. which members s h a l l n o t i f y the depositary
  of t h e i r acceptance of the amendment.
  3.       An amendment s h a l l enter i n t o force 90 days a f t e r the depositary.has                 received
 n o t i f i c a t i o n s of acceptance from members c o n s t i t u t i n g at l e a s t two t h i r d s of the
 exporting members and accounting f o r at l e a s t 85 per cent of the votes of the
 exporting members, and from members constituting- at l e a s t two t h i r d s of the
 importing, members and accounting f o r at l e a s t 85 per cent of the votes of the
 importing members.
 4.       A f t e r the depositary informs the Council that the requirements f o r entry i n t o
 force of the amendment have been met, and notwithstanding the provisions of
 paragraph 2 of t h i s a r t i c l e r e l a t i n g to the date f i x e d by the Council, a. member
 may s t i l l n o t i f y the deposita.ry of i t s , acceptance of the amendment, provided that
 such n o t i f i c a t i o n i s ma.de before the entry i n t o force of the amendment.
 5.       Any member which has not n o t i f i e d i t s acceptance of an amendment by the date
 on'which such amendment enters into force s h a l l cease to be a party to t h i s
Agreement as from that date, unless such member has s a t i s f i e d . t h e Council that i t s
acceptance could - not be obtained i n time owing to d i f f i c u l t i e s i n completing i t s
c o n s t i t u t i o n a l or i n s t i t u t i o n a l procedures, and the Council decides to extend the
period f o r acceptance of the amendment f o r that member.                       Such member s h a l l not be
bound by the amendment before i t ha.s n o t i f i e d i t s acceptance thereof.
6.        I f the requirements f o r the entry into force of the amendment ha.ve not been,
met by the date f i x e d 'by the Council i n accordance with paragraph 2 of t h i s a r t i c l e ,
the amendment s h a l l be considered withdrawn.
                                                            A r t i c l e 45
                                                            Withdrawal
1.       A member may withdrav fr",:i t h i s Agreement at any time a f t e r the entry i n t o
force of t h i s Agreement by giving" w r i t t e n notice of withdrawal                   to the depositary.
That member s h a l l simultaneously inform the Council of the a c t i o n i t has taken.
2.       Withdrawal s h a l l become e f f e c t i v e 90 days a f t e r the notice i s received by the
depositary.
 ---pagebreak---                                                                                TK/JUTE/EX/R.4
                                                                                page 25 '
                                                 A r t i c l e 44
                                                   Exclusion
          I f the Council decides that any member i s i n brea.ch of i t s obligations under
 t h i s Agreement and decides f u r t h e r that such breach s i g n i f i c a n t l y impairs the
 operation of t h i s Agreement, i t may, by s p e c i a l vote, exclude that member from
 t h i s Agreement.        The Council s h a l l immediately so n o t i f y the depositary.                One
 year a f t e r the date of the Council's decision, that member s h a l l cease to be a
 party to t h i s Agreement.
                                                 A r t i c l e 45
                   Settlement  of account? with withdrawing or excluded members
                              or members una.ble to a.ccept an amendment
1.       I n accordance with t h i s a r t i c l e , the Council s h a l l determine any settlement'
 of accounts with a member which ceases t o be a party t o t h i s Agreement owing t o :
          (a)     Non-a.ccepta.nce of an amendment. to t h i s Agreement under a r t i c l e 42 j
          (b)     Withdrawal from t h i s Agreement under a r t i c l e 43; or
          (c)     Exclusion from t h i s Agreement under a r t i c l e 44·
 2»      The Council s h a l l r e t a i n any c o n t r i b u t i o n paid to the Administrative Account
by a member which ceases to be a party to t h i s Agreement.
3«       A member which'has received an appropriate refund under t h i s a r t i c l e s h a l l
not be e n t i t l e d to ,a.ny "share of the proceeds of l i q u i d a t i o n or the other assets
of the Organization.            Nor-shall such a member bo l i a b l e , .for any d e f i c i t incurred
by the Organization a f t e r such refund has been made. ,
                                                 A r t i c l e 46
                                 Duration, extension and termination
1.       This Agreement s h a l l remain i n force f o r a. period of f i v e years from the date
of i t s entry i n t o force unless? the Council decides, by special vote, to extend or
renegotiate t h i s Agreement or to terminate i t .
2.       Before the expiry of the f i v e - y e a r period referred to i n paragraph 1 of
t h i s a r t i c l e , the Council may, by s p e c i a l vote, decide to extend t h i s Agreement
f o r a period not exceeding two years and/or to renegotiate i t .
3·       I f j before the expiry c f the f i v e - y e a r period r e f e r r e d t o i n paragraph 1 of
t h i s a r t i c l e , negotiations f o r a new agreement to replace t h i s Agreement have not
yet been concluded, the Council may, by special vote, extend.this Agreement f o r
a period to be decided by the Council.,
4.       I f , before the expiry of the f i v e - y e a r period referred to i n paragraph 1 of
t h i s a r t i c l e , a new agreement to replace t h i s Agreement has been negotiated but has
not yet entered i n t o force e i t h e r d e f i n i t i v e l y or p r o v i s i o n a l l y ^ the Council may,
by s p e c i a l vote, extend t h i s Agreement u n t i l the p r o v i s i o n a l or d e f i n i t i v e  entry
i n t o force of the new agreement.
 ---pagebreak---  TD/JUTE/EX/R.4
 page 26
 5.        I f a new i n t e r n a t i o n a l jute agreement i s negotiated and enters i n t o force
 during any period o f extension of t h i s Agreement pursuant to paragraphs 2, 3 o r 4
 of t h i s a r t i c l e , t h i s Agreement, as extended, s h a l l terminate upon the entry i n t o
 force of the new agreement.
 6.        The Council may a t any time, by special vote, decide to terminate                   this
Agreement with e f f e c t from such date as i t may determine.
 7.        Notwithstanding the termination of t h i s Agreement, the Council s h a l l continue
i n being f o r a period not exceeding I S months to carry out the l i q u i d a t i o n of the
Organization, i n c l u d i n g the settlement of accounts, and, subject t o relevant
decisions t o be ta.ken by special vote, s h a l l ha,ve during that period such powers
and functions as may be necessa.ry f o r these purposes.
8.         The Council s h a l l n o t i f y the deposita.ry of any d e c i s i o n taken under t h i s
article.
                                                       A r t i c l e 47
                                                      Reservations
          Reservations may not be made with respect t o any of the provisions of t h i s
Agreement.
          I N WITNESS WHEREOF           the undersigned,         being duly authorized thereto, have
a f f i x e d t h e i r signatures under t h i s Agreement on the dates i n d i c a t e d .
          DONE    a t Geneva, on the f i r s t day of October, one thousand nine hundred and
eighty-two, the texts of t h i s Agreement i n the Ara.b±o,_English, -French*                    Russian
and Spanish languages being equally authentic.
 ---pagebreak---                                                                                TD/JUTE/EX/R.4
                                                                                Annex A
                                               ANNEX A
S H A R E S OP I N D I V I D U A L E X P O R T I N G C O U N T R I E S M T O T A L N E T E X P O R T S
OP J U T E A N D J U T E P R O D U C T S OP C O U N T R I E S P A R T I C I P A T I N G I N T H E
U N I T E D N A T I O N S C O N F E R E N C E ON J U T E A N D J U T E P R O D U C T S , 1981, A S
                 E S T A B L I S H E D P G R T H E P U R P O S E S OP A R T I C L E 40
                                                                                Percentage
Bangladesh                                                                               56.668
Brazil                                                                                0.911
India                                                                                31.457
Nepal                                                                                5.452
Peru                                                                                0.097
Thailand                                                                                7.405
                                                                        Total           100.000
 ---pagebreak---                                                                  TD/JUTE/EX/R.4
                                                                 Annex B
                                                                 page 1
                                   ANNEX B'
   SHARES OP INDIVIDUAL IMPORTING COUNTRIES AND GROUPS OP COUNTRIES
   IN TOTAL NET IMPORTS OF JUTE AND JUTE PRODUCTS OP COUNTRIES
   PARTICIPATING IN THE UNITED NATIONS CONFERENCE ON JUTE AND JUTE
    PRODUCTS, 1981, AS ESTABLISHED FOR THE PURPOSES OP ARTICLE 40
                                                        Percental
  Algeria                                                    0.916
  Australia                                                  7.067
  Austria                                                    0.252
  Bulgaria                                                   1.572
  Canada                                                     1.702
  Colombia                                                  0.000
  Costa R i c a                                             0.000'
  Cuba                                                       5.250
 Czechoslovakia                                             1.256
 Ecuador                                                    0.000
 Egypt                                                      2.747
 E l Salvador                                               6.542
 European Economic Community                              16.516
    Belgium-Luxembourg                                      2.892
    Denmark                                                 0.513
    France                                                  2.778
    Germany, Federal Republic of                            2.851
    Greece                                                 0.420
    Ireland                                                O.566
    Italy                                                  1.244
    Netherlands                                            1.740
    United Kingdom of Great B r i t a i n and
      Northern Ireland                                     3.732
Finland                                                    0.191
Ghana                                                      0.536
Hungary                                                    0.420
Indonesia                                                  2.366
Iraq                                                       1.915
Japan                                                      5.952
Madagascar                                                0.350
 ---pagebreak--- TD/JUTE/EX/R.4
Annex' B
page 2
                                                             Percentage
         . Malaysia                                               C160
           Malta                                                  0.000
           Mauritania                                             0.008
           Mexico-                                                0.359
           Nicaragua                                              0-122
           Nigeria                                               •0.626
           Norway                                                 0.166
           Pakistan                                               7-547
           Philippines                                            0.259
           Poland                                                 1.221
           Korea, Republic of                                     0.443
           Romania                                                0.885
            Saudi Arabia                                          0.313
           Senegal                                                0,023
           Spain                                                  0.664
           Sudan                                                  3.846
           Sweden                                                 0.046
           Switzerland                                            0.267
           Syrian Arab Republic                                   1.740
           Tunisia                                                0.320
           Turkey                                                 1.160
           Union of Soviet S o c i a l i s t Republics           11.729
          ' United Republic of Tanzania                           0.702
           United States of America                              16.644
          . Venezuela                                             0.C53
           Yugoslavia                                             1.526
           Zaire                                                  0.023
                                                       TOTAL   100.000