United Nations Special Fund

XXIX. RESOLUTIONS ADOPTED ON THE REPORTS OF THE SECOND COMMITTEE
3356. United Nations Special Fund

The General Assembly, Recalling its resolution 3202 (S-VI) of 1 May 1974, by which it decided, inter alia, to establish a Special Fund under the auspices of the United Nations, through voluntary contributions from industrialized countries and other potential contributors, as a part of the Special Programme, to provide emergency relief and development assistance, which will commence its operations at the latest by 1 January 1975,[1] Recalling Economic and Social Council resolution 1911 (LVII) of 2 August 1974, in paragraph 10 of which the Council urged the Ad Hoc Committee on the Special Programme established by the General Assembly at its sixth special session to complete, as a matter of urgency, the tasks assigned to it in subparagraphs (a), (b) and (c) of paragraph 6 of the Special Programme and to submit to the General Assembly at its twenty-ninth session, through the Council at its resumed fifty-seventh session, an assessment of the requirements of the most seriously affected countries, as well as recommendations that would enable the Assembly to take the appropriate decisions, in particular for the commencement at the latest by 1 January 1975 of the operations of the Special Fund established in paragraph 5 of the Special Programme, Considering the need to set forth specific provisions governing the operations of the Special Fund, Taking note of the reports of the Ad Hoc Committee on the Special Programme on its first[2] and second[3] sessions, Taking note also of the relevant part of the report of the Economic and Social Council on the work of its resumed fifty-seventh session,[4]

1. Decides that the United Nations Special Fund shall operate as an organ of the General Assembly in accordance with the provisions set forth below:

Article I PURPOSE

The United Nations Special Fund shall provide emergency relief and development assistance to the countries most seriously affected in accordance with the relevant provisions of section X of General Assembly resolution 3202 (S-VI) of 1 May 1974. The Special Fund shall serve as a central monitoring body for such bilateral and multilateral assistance and, in general, as a focal point for am, stimulus to such assistance.

Article II RESOURCES

1. The resources of the Special Fund shall consist of voluntary contributions in cash or in kind by Governments. The Special Fund shall also be empowered to receive contributions from governmental and non-governmental international organizations and from other private sources.

2. Contributions to the Special Fund may also be made by means of pledging conferences convened by the Secretary-General of the United Nations.

3. Contributions as pledged to the Special Fund shall be payable in full or in instalments within the twelve months following the pledge.

4. Cash contributions shall be made in convertible currencies or in currency readily usable by the Special Fund, consistent with the need for efficiency and economy of the Fund's operations.

Article III ORGANIZATION AND SUPERVISION

1. The policies and procedures of the Special Fund shall be formulated by the-Board of Governors of the United Nations Special Fund, composed of representatives of thirty-six States Members of the United Nations or members of specialized agencies or of the International Atomic Energy Agency elected by the General Assembly, keeping in view, inter alia, the need for balance between the representation of potential donors and recipients. States elected to the Board of Governors shall do their utmost to ensure that their representatives possess the expertise required for the efficient operation of the Special Fund.

2. The members of the Board of Governors shall be elected for a term of three years, provided, however, that, of the members elected at the first election, the terms of one third of the members shall expire at the end of one year and the terms of a further one third of the members at the end of two years. Retiring members shall be eligible for re-election. The first election shall take place at the twenty-ninth session of the General Assembly.

3. The Board of Governors shall report annually to the General Assembly through the Economic and Social Council. The comments of the Council on the report shall likewise be transmitted to the Assembly.

4. The Board of Governors may, in the light of the experience gained, the magnitude of the resources available and the changes in the nature of operations, establish an Executive Committee to supervise the operations of the Special Fund on a continuous basis which shall report to it on its activities at regular intervals. Donors and recipients shall be represented in the Executive Committee in equal numbers.

Article IV VOTING

1. Each member of the Board of Governors and each member of the Executive Committee shall have one vote.

2. The quorum for a meeting of the Board of Governors or of the Executive Committee shall be two thirds of the total membership of the Board or of the Executive Committee.

3. Decisions on all questions shall as far as possible be made on the basis of consensus. In the absence of consensus, decisions on important questions-including questions of policy, the approval of projects, the allocation of funds and the eligibility of recipients-shall be made by a two-thirds majority of the total membership of the Board of Governors or, as appropriate, of the Executive Committee. Decisions on other questions shall be made by a majority of those present and voting.

Article V MANAGEMENT

1. The chief executive officer of the Special Fund, who shall be appointed by the Secretary-General, subject to confirmation by the General Assembly, shall be the Executive Director of the Special Fund.

2. The Executive Director shall discharge his functions under the guidance and supervision of the Board of Governors and the Executive Committee, if established, in whose deliberations he will participate without the right to vote. He shall exercise over-all responsibility for the day-to-day operations of the Special Fund and shall report directly, on a regular basis, to the Board of Governors, or through the Executive Committee, if established, on the operations of the Fund.

3. The Executive Director shall be assisted by a small secretariat within the framework of the United Nations Secretariat. The Special Fund may enter into management contracts with international organizations such as the International Bank for Reconstruction and Development and its affiliates, the International Monetary Fund and the regional development banks, to conduct its operations. The contracts shall ensure the full and effective control, at all times, of the Special Fund over the operations. The Executive Director shall, to the maximum extent possible, make effective use of the existing facilities of the United Nations Secretariat, including also those of the regional commissions, the United Nations Development Programme, the United Nations Conference on Trade and Development and the United Nations Industrial Development Organization. Where appropriate, the Special Fund may also use the facilities of the specialized agencies.

Article VI MODES OF OPERATION

1. To carry out its purposes as specified in article I, the Special Fund is empowered to make grants and, on concessionary terms, to make loans and, as appropriate, to participate in investments and to allocate assistance in kind under its control and, direction to countries most seriously affected by economic crises.

2. The eligibility of potential recipients, other than the least developed among the developing countries and the land-locked developing countries, shall be periodically reviewed by the Board of Governors.

3. The Special Fund shall ensure an equitable distribution of its resources among the countries most seriously affected.

Article VII FINANCIAL ARRANGEMENTS

Pending the approval by the General Assembly of financial regulations to govern the Special Fund, the Financial Regulations and Rules of the United Nations[5] shall apply.

2. Requests the Secretary-General to submit, through the Board of Governors, a report on administrative arrangements for the Special Fund, including proposals for appropriate financial regulations and rules, to the General Assembly at its thirtieth session, through the Economic and Social Council at its fifty-ninth session.

2325th plenary meeting
18 December 1974 At its 2325th plenary meeting, on 18 December 1974, the General Assembly, in pursuance of paragraph 1, article III, of the above resolution, elected the following thirty-four members of the Board o( Governors of the United Nations Special Fund, on the understanding that the remaining two members would be elected by the Economic and Social Council: ALGERIA, ARGENTINA, AUSTRALIA, BRAZIL, CHAD, COSTA RICA, CZECHOSLOVAKIA, FRANCE, GUYANA, INDIA, IRAN, JAPAN, KUWAIT, MADAGASCAR, NEPAL, NETHERLANDS, NIGERIA, NORWAY, PAKISTAN, PARAGUAY, PHILIPPINES, SOMALIA, SRI LANKA, SUDAN, SWAZILAND, SYRIAN ARAB REPUBLIC, TURKEY, UNION OF SOVIET SOCIALIST REPUBLICS, UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND, UPPER VOLTA, URUGUAY, VENEZUELA, YUGOSLAVIA and ZAIRE. At the same meeting, the General Assembly decided by the drawing of lots that ALGERIA, ARGENTINA, CZECHOSLOVAKIA, INDIA, NIGERIA, PARAGUAY, THE PHILIPPINES, SRI LANKA, TURKEY and ZAIRE would serve for a period of three years, AUSTRALIA, BRAZIL, CHAD, IRAN, KUWAIT, MADAGASCAR, THE NETHERLANDS, THE SYRIAN ARAB REPUBLIC, SWAZILAND, THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND, URUGUAY and YUGOSLAVIA for a period of two years and COSTA RICA, FRANCE, GUYANA, JAPAN, NEPAL, NORWAY, PAKISTAN, SOMALIA, THE SUDAN, THE UNION OF SOVIET SOCIALIST REPUBLICS, UPPER VOLTA and VENEZUELA for a period of one year, and that the two members to be elected by the Economic and-Social Council would serve for a period of three years. At its 1938th plenary meeting, on 15 January 1975, the Economic and Social Council elected SWEDEN as one of the remaining two members of the Board of Governors of the United Nations Special Fund. As a result of the above elections, the Board of Governors is composed of the following States: ALGERIA, ARGENTINA, AUSTRALIA, BRAZIL, CHAD, COSTA RICA, CZECHOSLOVAKIA, FRANCE, GUYANA, INDIA, IRAN, JAPAN, KUWAIT, MADAGASCAR, NEPAL, NETHERLANDS, NIGERIA, NORWAY, PAKISTAN, PARAGUAY, PHILIPPINES, SOMALIA, SRI LANKA, SUDAN, SWAZILAND, SWEDEN, SYRIAN ARAB REPUBLIC, TURKEY, UNION OF SOVIET SOCIALIST REPUBLICS, UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND, UPPER VOLTA, URUGUAY, VENEZUELA, YUGOSLAVIA and ZAIRE.

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[1] Resolution 3202 (S-YI), sect. X, para. 5. [2] E/5555. [3] E/5590. [4] Official Records of the General Assembly, Twenty-ninth Session, Supplement No. 3A (A/9603/Add.1), chap. 1, sect. B [5] ST/SGB/Financial Rules/l/Rev.1 and Rev.I/Amend.1-4.