International measures to assist in offsetting fluctuations in commodity prices

XIV. RESOLUTIONS ADOPTED ON THE REPORTS OF THE SECOND COMMITTEE
1423. International measures to assist in offsetting fluctuations in commodity prices

The General Assembly, Recalling its resolution 1324 (XIII) of 12 December 1958 and Economic and Social Council resolution 726 (XXVIII) of 24 July 1959, Bearing in mind the responsibilities laid upon Member States by the Preamble, by Article 1, paragraph 3, by Article 13, paragraph 1, and by Article 55 of the Charter of the United Nations to promote international co-operation in the economic field, higher standards of living, full employment, and conditions of economic and social progress, Taking into account the harmful potentialities of the widening gap between the levels of per caput income in developed and under-developed countries, Having examined the report of the Economic and Social Council on international commodity problems[1] and the report of the Commission on International Commodity Trade on its seventh session,[2] particularly paragraph 62 thereof relating to compensatory financing, Commending the work programme drawn up by the Commission on International Commodity Trade at its seventh session and approved by the Economic and Social Council, Considering the necessity of devising means to combat large fluctuations in commodity prices when accompanied by a general fall in the price levels of primary commodities and the rising price levels of manufactured goods, and the resulting decline in the terms of trade against the under-developed countries, Considering that such fluctuations hamper world trade, Considering further the repercussions of adverse trade balances on the capacity of the under-developed countries to contribute to their own development, Recognizing the imperative necessity of urgent and effective measures to enable the under-developed countries to initiate and sustain their development programmes at adequate levels,

1. Requests the Secretary-General to appoint a group of not more than seven experts to assist the Commission on International Commodity Trade in its consideration of commodity problems by examining the feasibility of establishing machinery, within the framework of the United Nations, designed to assist in offsetting the effects of large fluctuations in commodity prices on balances of payments, with special reference to compensatory financing, and to submit its report and recommendations to the Commission on International Commodity Trade by its ninth session, and requests the Economic and Social Council to comment on and transmit this report to the General Assembly;

2. Further requests the Secretary-General to invite the International Monetary Fund and the Food and Agriculture Organization of the United Nations to participate in the work of the group of experts in a consultative capacity.

846th plenary meeting,
5 December 1959.

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[1] Official Records of the General Assembly, Fourteenth Session, Supplement No. 3 (A/4143), chapter II, section II. [2] Official Records of the Economic and Social Council, Twenty-eighth Session, Supplement No. 6 (E/3225).