SITUATIONS WANTED
Perfect freedom is reserved for the man who lives by his own work, and in that work does what he wants to do........................Speculum Mentis...prologue
Many of you may have lost your job, or feel your industry is so unstable you may soon lose your job. You=ve watched as a large percentage of the jobs in your industry left this county. You=ve watched your friends who have lost their jobs struggle to keep their homes. You may even have had to reduce the quality of your life due to lost income based on decreased production in the job you now have. You=ve listened to our politicians promise how they are going to bring new jobs, new industry to America. Yet some of us wait in vain. Why do you think industry in America is dying? Is it because we have become over regulated by government, making it impossible for employers to keep their industry alive? Is it because we no longer have a work ethic good enough to sustain industry in this nation? Are we undertrained? Are we under educated? Or, could it be by design?
In 1945 The United States government signed the United Nations Participation Act. The American people were told by our government that the United Nations would serve as an organization that would work to bring peace to the world and put an end to the threat of war among the many Nations forever. In 1948 the Universal Declaration of Human Rights was issued. In Article 23 it is stated, in part: 1. Everyone has the right to work, to free choice of employment, to just and favorable conditions of work and to protection against unemployment.
It is this statement that created the proposal for the creation of The United Nations Industrial Development Organization.
Many of you may have never heard of the United Nations Industrial Development Organization, otherwise known as UNIDO, or that UNIDO functions as a specialized agency within the United Nations. UNIDO was set up in 1966 as an autonomous organization within the United Nations. Its basic objective was to promote and facilitate industrialization in funding developing countries.
In 1975, the United Nations endorsed a recommendation that UNIDO become a specialized agency with its own constitution and budget. Negotiations began in 1976 and were concluded on April 8 1979, when a Constitution was adopted by consensus at a U.N. Conference on the Establishment of UNIDO as a Specialized Agency. The United States signed the Constitution on January 17,1980. The President formally transmitted the Constitution to the Senate for its advice and consent on October 5, 1981.
At the second-quadrennial conference (UNIDO II) in Lima, Peru, in 1975, a Lima Declaration and Plan of Action for Industrial Development and Cooperation was adopted over the objections of the United States. Four years later, UNIDO III endorsed a New Delhi Declaration and Plan of Action, again over U.S. objections. The thrust of these political documents is that industrial country governments should work toward a goal of ensuring that 25 percent of the world's industrial plant is located in the developing world by the year 2000. The documents imply that not only should developed countries provide aid to help meet these goals, but also adopt trade and internal industrial policies which insure that the goal will be reached, even if it means shutting down their own industries which are identified as being more suitably located in the Third World.
The United States has often been frustrated by its inability to exert much control over budgets or personnel policies in U.N. agencies, even though it contributes 25 percent of the central budget.
The United States cannot limit its contribution to UNIDO without getting out of the U.N. as a whole. Personnel policies are also to some degree dictated from the U.N. offices in New York, so that UNIDO can claim that it is unfair to look at the U.S. share of UNIDO jobs, but rather one must look at the U.S. share of all U.N. jobs.
The Constitution does contain one considerable irritant to sensibilities. The preamble includes the phrase, "Bearing in mind the broad objectives in the resolutions adopted by the sixth special session of the General Assembly of the United Nations on the establishment of a New International Economic Order, in the UNIDO Second General Conference's Lima Declaration and Plan of Action for Industrial Develop and Co-operation........" The first article of the operative part of the Constitution begins by stating that "The primary objective of the organization shall be the promotion and acceleration of industrial development in the developing countries with a view to assisting in the establishment of a new international economic order.
We are now living in that NEW ORDER. Our jobs are disappearing. Our quality of life is dropping. It now takes three incomes to buy what one once provided. But we can all sleep well knowing that the United Nations, under the guidance of UNIDO, is doing its part to guarantee to all the peoples of the world a job. Can our politicians effectively bring industry back to America when they are the very people who agreed to let it go?
Socialism is usually defined as government ownership and/or control over the basic means of production and distribution of goods and services. This means government control over everything, including you. All controls are people controls. Socialism is government control, operation, and ownership of the Nation's business. Socialism calls for the continuous expansion and centralization of governmental power over private production, private property, private employment and private life. Under socialism, all business becomes public business; all property becomes public property; all employees become public employees; and all privacy is abolished.
The idea that socialism is a share the wealth program is in reality a fraud contrived by government to get the people to surrender their freedom to an all powerful collectivist government. All collectivist systems require power in government which the Constitution did not grant. The Founding Fathers had no intention of allowing the government to steal the right of one man's labor and give it to another.
This author believes that the United Nations and it=s many treaties which have been codified into United States Law is the mechanism for bringing world socialism under the control of the United Nations. In the reality of SOCIALISM you have a tiny oligarchical clique at the top usually numbering no more than three percent of the total population, controlling the total wealth, total production and the very lives of the other ninety-seven percent. SOCIALISM is not a share the wealth program. SOCIALISM is the method the United Nations will use to control and consolidate both the wealth of the world and the peoples of the world and effectively bring it under the control of a One World Government. Control of our Industries is perhaps just the beginning.
97th Congress
2d Session SENATE Executive Rept.
No. 97-59
.
CONSTITUTION OF THE UNITED NATIONS INDUSTRIAL
DEVELOPMENT ORGANIZATION
September 13 (legislative day, September 8), 1982.-------Ordered to be printed
Mr. Percy, from The Committee on Foreign Relations,
submitted the following
REPORT
[To accompany Treaty Doc. 97-19]
The Committee on Foreign Relations, to which was referred the Constitution of United Nations Industrial Development Organization (UNIDO), which was signed for the United States at New York, on January 17, 1980, having considered the same, reports favorably thereon with understandings and recommends that the Senate give its advice and consent to ratification thereof.
PURPOSE
This Constitution would establish UNIDO as a specialized agency within the United Nations
BACKGROUND
UNIDO was set up in 1966 as an automonous organization within the United Nations. Its basic objective is to promote and facilitate industrialization in funding developing countries. UNIDO obtains its administrative funding from the U.N. central budget. This budget amounts to $36.5 million in calendar year 1982. In addition, UNIDO conducts a large variety of industrial technical assistance programs primarily with United Nations Development Program (UNDP) funds. The budget for this activity in 1982 comes to $105.0 million The U.S. share of the central budget is equal to the share of the overall U.N. budget, or 25 percent. While the United States accounts for about 18 percent of UNDP's budget, its share of UNIDO's technical assistance program is a bit smaller, as UNIDO obtains funds from several trust funds and bilateral donations which do not involve any U.S. contributions.
In 1975, the United Nations endorsed a recommendation that UNDO become a specialized agency with its own constitution and budget. Negotiations began in 1976 and wore concluded on April 8 1979, when a Constitution was adopted by consensus at a U.N. Conference on the Establishment of UNIDO as a Specialized Agency The United States signed the Constitution on January 17,1980. The President formally transmitted the Constitution to the Senate for its advice and consent on October 5, 1981.
To date 124 countries have signed the Constitution and 80 have ratified. When 80 countries have ratified special consultations can be held to formally decide that UNIDO will become independent. Although the necessary number of countries have now ratified the Constitution, it is unlikely that such consultations will be held until the U.S. ratifies the treaty. Several Western industrial countries, including Germany and the United Kingdom and Canada have withheld ratification awaiting U.S. action. On the other hand, Japan and France have already ratified. Most East bloc countries, including the Soviet Union, are also withholding ratification, evidently awaiting U.S. action.
UNIDO's record on delivering reasonably professional technical services seems at a par with other U.N. agencies. Activities range from sending many short term consultants for a few weeks to deal with highly technical problems, to sponsoring workshops and training programs for technicians and managers, to long term contracts to establish a factory or research facility. Use of U.S. consultants is quite common.
On the other hand, UNIDO's record is hosting large international conferences which endorse concepts contained in New International Economic Order has been at odds with longstanding U.S. policy. At the second-quadrennial conference (UNIDO II) in Lima, Peru, in 1975, a Lima Declaration and Plan of Action for Industrial Development and Cooperation was adopted over the objections of the United States. Four years later, UNIDO III endorsed a New Delhi Declaration and Plan of Action, again over U.S. objections. The thrust of these political documents is that industrial country governments should work toward a goal of ensuring that 25 percent of the world's industrial plant is located in the developing world by the year 2000 ( the current percentage is about 11 percent). The documents imply that not only should developed countries provide aid to help meet these goals, but also adopt trade and internal industrial policies which insure that the goal will be ranched. even if it means shutting down their own industries which are identified as being more suitably located in the Third World.
The United States has often been frustrated by its inability to exert much control over budgets or personnel policies in U.N. agencies, even though it contributes 25 percent of the central budget. U.S. current policy is to press for zero growth (in real terms) budgets UNIDO=s's recent budget record is quite good with its 1982 budgetC about the same in real terms as its 1981 budget Its personnel record is more troublesome. According to general U.N. formulas, the United States should have around 15 percent of UNIDO's professional staff; it currently only has around 11 percent. Only three of the 27 director level or above slots are filled by Americans, and none of the eight senior positions is from the United States.
The United States difficulties with UNIDO are to some degree related to UNIDO's current status as a part of the U.N. The organization operates on a principle of one country, one vote so that on political and budget issues the United States and other Western countries can easily be outvoted (on budget issues, it should be noted, the Soviets and other East bloc countries tend to be as conservative as the United States, and also outvoted). The United States cannot limit its contribution to UNIDO without getting out of the U.N. as a whole. Personal policies are also to some degree dictated from New York, so that UNIDO can claim that it is unfair to look at the U.S. share of ,UNIDO jobs, but rather one must look at the U.S. share of all U.N. jobs.
These institutional problems provide the most logical argument for making UNIDO a specialized agency. On political issues, the United States could at least, threaten the ultimate weapon----- getting out of UNIDO and taking with it 25 percent of UNIDO's central budget. On the budget, the new Constitution contains a complicated voting formula (Article 14) which essentially would let the Western donor countries plus one other country block approval of any budget. This is a breakthrough in the U.N. system. The United States would likely find allies among the Eastern bloc countries, and perhaps even some of the developing countries which are relatively large assessments. With respect to personel UNIDO could no longer blame its low American representation policies dictated by the U.N. in News York. The Constitution also states that 6 percent of assessed budget will be spent on technical assistance (about the current level), which in effect imposes a ceiling. The United States has strongly opposed the tendency for other U.N. agencies to expand technical assistance programs funded from assessed funds.
The Constitution does contain one considerable irritant to sensibilities. The preamble includes the phrase, "Bearing in mind the broad obgectives in the resolutions adopted by the sixth special session of the General Assembly of the United Nations on the establishment of a New International Economic Order, in the UNIDO Second General Conference's Lima Declaration and Plan of Action for Industrial Develop and Co-operation........" The first article of the operative part of the Constitution begins by stating that "The primary objective of the organization shall be the promotion and acceleration of industrial development in the developing countries with a view to assisting in the establishnent of a new international economic order.
Those familiar with U.N. lexicon will note that the preamble only "bears in mind" the New International Economic Order, and that Article I refers to a new international economic in lower case letters. The United States can therefore claim, as it did during negotiations, that Article I does not refer to any specific economic order, and that as the world economic system is constantly evolving, by definition there will be a new international economic order in the future that is different than the present. Nonetheless, the Committee decided to include an understanding with the treaty which makes clear that the United States is by no means obligated to support any of the specific recommendations contained in the Sixth special Session documents or the Lima Declaration.
MAJOR PROVISIONS
The Constitution consists of a preamble twenty-nine articles (in six chapters) and three annexes. The preamble contains no operational language. It recalls a variety of U.N. resolutions, notes the importance of industrilization in the develpoment process, and states that all countries should cooperate to promote industrialization.
In Chapter I the first article states that the "primary objective" of UNIDO shall be the Promotion and acceleration of industrial development in the developing countries with a view to assisting in the establishment of a new economic order." As noted, the use of lower case letters and the article "a" instead of "the" was meant to delink this article from an endorsement of the specific "New International Economic Order" outlined in various U.N. resolutions and the. Chapter of Economic Rights and Duties of States. Nonetheless, the understanding recommended by the Committee. further clarifies that this article in no way altered previous U.S. positions on NEIO? type resolutions.
The second article outlines a variety ofactivities activities for UNIDO, including: coordinating United Nations industrial development activities; providing technical assistance for industrialization, including training and pilot facilities; managing an industrial information clearinghouse advising and assisting developing: countries in formulating and executing development plans; assisting in the establishment and operation of industries, and as requested by the countries , providing a forum for contacts and negotiations
Chapter II provides for participation in UNIDO. Membership is open to all States which are members of the United Nations or a specialized agency. Article 6 provides for withdrawal from membership not possible now without withdrawing from the United Nations. Dues would have to be paid for one year following withdrawal.
Chapter III establishes the organs of UNIDO Article 8 specifies a general Conference composed of all members which will act upon the reports of the Board and the Director-General and determine the guiding principles and policies of the organization. Article 9 provides for the Board to be composed of 53 members elected by the Conference with the following distribution of seats: 38 members elected from the Group of 77 (the G-77 or U.N. caucus of developing countries). 15 members elected from Group B (industrialized countries) and five members selected from group D (the Soviet bloc). Article 10 establishes a Programmed and Budget Committee to consist of 27 members elected by the Conference with the following distribution: 15 from the G-77 nine from Group B. and three from group D.
Chapter IV delineates the the process for approval of the program of work and the regular budget (i.e.. the budget expenditures to be met from assessed contributions) and the operational budget (i.e.. budget expenditures to be met from voluntary contributions). Article 14 stipulates that the Director-General shall prepare and submit a draft work program, regular budget and operational budget to the Board through the Programmed and Budget Committee. The Committee will consider the Director-General's proposals and make recommendations to the Board by a two-third majority vote of those present and voting. The Board will examine the Director General's proposals and the
recommendation of the Committee and adopt the program of work regular budget and operational budget, for submission to the Conference, by a two-thirds majority of those present and voting. The Conference will approve the submission of the Board by a two-thirds majority vote of those present and voting. The Conference may make no decision or amendment involving expenditures unless the Committee and the Board have had an opportunity to act as indicated above. By commanding more than a third of the votes in the Board and the Committee, the major donor States (i.e., Groups B and D ), which share a common-desire-to keep United Nations agency budgets to a reasonable level, will be able to block work programs and budgets of which they disapprove, if they act together. ..
Article 15 provides that the scale of assessments for members shall be established by the Conference by a two-thirds majority of the members present and voting, upon a recommendation of the Board adopted by a two-thirds majority of the members present and voting. The Board's-recommendation is to be based on a draft prepared by the Committee The Constitution thereby provides a mechanism for the major donors as a group to veto a scale of assessments which they disapprove. Article 15 also stipulates that the scale of assessments shall be based to the extent possible on the scale most recently employed by the United Nations and no member shall be assessed more than 25 percent of the regular budget.
Chapter VI covers legal. matters. Article 24 provides for amendments, with special, stringent provisions for amendments to financial articles. Financial amendments must be approved 'by two-thirds majorities of the Board and Conference respectively and must he ratified by three-fourths of the Member States. This provision protects the blocking third of the votes which major donors command in the Committee and Board.
Article 25 stipulates that the Constitution shall enter into force when at least eighty States that deposited instruments of ratification notify the Secretary General of the United nations that they have agreed, after consultations among themselves, that the Constitition shall enter into force. However, for States that had deposited instruments of ratification but did not participate in such notification the Constitution shall come into force on such later date as they choose. The practical effect of the entry into force provisions is that the Constitution will not enter into force without the agreement and participation of major donors, including the United States.
Article 27 states that no reservations may be made to the Constitution.
ENERGY INTO FORCE
The Constitution provides that after 80 countries have ratified the Constitution, they may hold consultations and notify the Secretary General of the United Nations of their decision to bring the Constitution into force. As eighty states have already ratified the Constitution that process could legally take place at any time. It is' doubtful, however that such consultations will occur until the United States has ratified It is therefore likely that in practical terms the Constitution will enter into force a few months after a formal ratification by the United States...
COMMITTEE ACTION
The Committee held hearings on June 29 1982 and received testimony from the Honorable Gregory J. Newell Assistant Secretary of State for International Organization Affairs On August 10, 1982, the Committee considered the Constitution, and by a voice vote, ordered that it be reported favorably to the Senate with an understanding for advice and consent to ratification.
..
COST ESTIMATE
The Coingressional Budget Office has provided the Committee with the following information on the budgetary impact of this treaty:
U.S. Congress,
Congressional Budget Office,
Washington D.C. September 7, 1982
Hon. Charles H. Percy,
Chairman, Committee on Foreign Relations,
U.S.Senate, Washington, D.C.
Dear MR. CHAIRMAN: Pursuant to Section 408 of the Congressional Budgets Act of 1974 the Congressional Budget Office has reviewed the treaty document and resolution of ratification of the Constitution of the United Nations Industrial Development Organization as ordered reported with understandings by the Senate Foreign Relations Committee on August 10, 1982.
Upon entering into force, the Treaty would create the United Nations Industrial Development Organization (UNIDO) as a separate United Nations affiliated agency. The United Sates currently contributes to UNIDO's regular budget through the assessed contribu- tions to the United Nations in the State Department appropriation and to the operitional budget through voluntary contributions in the Foreign Assistance appropriation. The scale of assessment for the regular budget is to be based on the scale used for the United Nation's Budget. Article 15 of the Treaty limits any member's assessment to no more than 25 percent of the total--------the United States' share of the United Nations' assessed budget. Therefore, it is expected that no significant additional cost to the United States government will be incurred as a result of the ratifying of the Treaty.
Sincerly,
Raymond C. Scheppach ( For Alice M. Rivlin, Director).
TEXT OF RESOLUTION OF RATIFICATION
Resolved (two thirds of the Senators present concurring therein), That the Senate advise and consent to the ratification of the Constitution of the United Nations Industrial Development Organization (UNIDO) and the annexes relating thereto (hereafter in this resolution referred to as the "constitution"), adopted by the United Nations Conference on the Eastablishment of the United Nations Industrial Development Organization as a Specialized Agency on April 8, 1979, and signed on behalf of the United States of America on January 17, 1980, subject to understandings, as follows:
(1) As used in Article 1 of the Constitution, the phrase "new international economic order"C
(A) is an evolving concept with no fixed meaning
(B) reflects the continuing goal of members of the United Nations to find new or more effective ways of handling international economic relations and is subject to interpretation by all such members; and
(C) is not legally defined by the Constitution or by any resolution of the sixth or seventh special session of the General Assembly of the United Nations or by the Lima Declaration and Plan of Action of the United Nations Industrial Development Organization.
(2) The entry into force of the Constitution with respect to the United States of America does not abrogate or rescind any reservation made by the United States of America to any resolution, declaration, or plan of action referred to in the Constitution.
Appendix A
UNIDO Constitution
Statement of Gregory J. Newell, Assistant Secretary Before The Senate Foreign Relations Committee
Mr. Chairman: I appreciate the opportunity to appear before you to discuss the ratification of the Constitution of the United Nations Industrial Development Organization. As you may recall from the statement I presented at the time of my confirmation hearings, I intend to improve U.S. influence in U.N. agency policy and management. I think ratification of the UNIDO Constitution will serve those goals.
We have not always agreed with all the positions or programs adopted by UNDO. We regret the tendency of the organization to take certain political and economic positions which are not in line with ours. But rather than attempting to judge the organization, I would like to undertake the challenge of U.S. participation in UNIDO constructively; specifically, how we can work through UNIDO to promote our values, views, and interests.
One area of common concern is technical assistance. UNIDO serves as the executing agency for technical assistance funds, primarily from the U.N. development program; which total twice its regular budget The vast majority of UNIDO technical assistance projects are consistent with U.S. development objectives. There are numerous "success stories" from UNIDO's work in the field.
To give just one tangible example, UNIDO is involved in a continuing project developing building materials in Indonesia. New techniques for upgrading masonry and reducing construction costs are providing housing for many of Indonesia's 4 1/2 million homeless; It is Obvious how such a project is consistent with U.S. objectives:
By providing for a basic needChousingCwe lessen the likelihood of debilitating social instability and enhance the cause of peace.
The technology appropriate to the need in the developing countries-----concrete blocks in this example is not supplanting a major U.S. export.
The project is conducive to self-sustaining economic growth and social development, teaching skills transferable to private sector entrepreneurs.
Another UNIDO program ---the Network of Investment Promotion Offices----is designed to bring private sector investment capital in the developed countries together with opportunities in developing countries This is a chance to expand the indigenous private sector in developing countries, as well as an opportunlty to involve the American private sector in the development process. It is not just an ideological tenet o, the United States, but a proven fact, that the bulk of transfer of technology takes place as a result of actions of the private sector.
Our emphasis on the private sector stems from the strongly held conviction that unleashing the individual initiative and creativity of the people of the Third World is critical to economic growth and development.
Putting aside the programs of the organization, the strongest arguments for ratification of this Constitution are in terms of management. The President's transmittal letter has clearly spelled these out in some detail. But let me briefly summarize here. Under the present arrangement program decisions are made by UNIDO's governing body, the Industrial Development Board, meeting annually in Vienna. Budget decisions are made by the U.N. General Assembly and its subsidiary bodies in New York. This structure leads to a diffusion of responsibility and to cumbersome procedures. The new Constitution would make the organization more responsive to its member governments.
Second, the major contributors----Western Europe the United States, Canada, Japan, Australia, and the Soviet bloc have blocking power on program and budget decisions. All these countries together currently can be outvoted in the U.N. General Assembly.
Third, the United States would have a specific right of withdrawal from UNDO, giving us flexibility, should it ever become necessary to stop contributing to this organization; without withdrawing from the U.N. I might point out that by simply having this right without exercising it, the United States would have greater leverage over the programs of the organization.
In sum, with ratification of this Constitution, we have an opportunity to improve the effectiveness of a major organ of the U.N. system and our role in it. We have an opportunity to continue to work through the U.N. system to support industrial development in the developing countries and advance the cause of security and peace in the world community. And finally, we have an opportunity to increase our ability to demonstrate dynamism of the American political and economic systems, and their applicability as models for developing countries.
Mr. Chairman, I would also ask the President's letter of transmittal be added for the record.
Thank you, Mr. Chairman.