World Food Board Proposal

MAC/WFY

Page-35

0230_553559_08_cha04

International Commodity Clearing House

Transactions under the ICCH would tend to interfere with normal trade. And the
proposed buffer stock operations were open to the same objections as those of
the WFB proposals. In essence, it was evident that key major countries were still
not prepared to entrust to a multilateral organization over which they had no
control with such potent functions as the management of a world food security
arrangement no matter how urgent it was or how it was shaped.

As to the continuation of surpluses arising through currency difficulties, the

FAO Conference saw no remedy. For those arising from other causes, it recom-
mended a more vigorous use of the Interim Co-ordinating Committee for Interna-
tional Commodity Arrangements, an institutional remnant of the ITO that never
came into being. However, the FAO Conference did establish a purely advisory
Committee on Commodity Problems (CCP), to function under the FAO Council,
initially to provide advice on surplus problems arising out of balance-of-payments
difficulties, which was later extended to review all commodity problems. The CCP
continues to function today. In 1952, the CCP was requested to examine the
feasibility of establishing an emergency food reserve to be available promptly to
countries threatened by famine. Three possibilities were suggested: a stock of food
owned by an international agency; a central fund administered by an international
agency for the purchase and distribution of emergency food; and emergency food
stocks held by national governments for international use. While the central fund
idea was generally preferred, no further action was taken at that time. Action was
taken, however, on another issue.

Attention was turned to the problems arising from the disposal of agricultural

surpluses especially as the United States government sought to export on special
terms part of the large stocks that had accumulated under its control. The CCP
recommended that two steps be taken. First, the establishment of a set of prin-
ciples, a code of conduct, to govern the disposal of agricultural surpluses (see
below). Second, the establishment of a permanent committee, to be known as
the Consultative Subcommittee on Surplus Disposal (CSD), as a subcommittee of
the CCP, to monitor continuously the impact of surplus disposal on agricultural
production and international trade. The CSD was established in Washington, DC
in 1954. It has continued to function to the present time and reports to the FAO
Council through the CCP.

While attempts to set up some form of world food security arrangement during

the first decade of FAO did not succeed, the FAO secretariat continued to keep the
issues alive through a series of seminal pioneering studies and reports throughout
the 1950s. These publications helped to clarify the issues involved, attempted
to facilitate the evolution of an international code of conduct, and constantly
sought out new approached for bringing governments together to get something
done. Experience had shown that it was not possible to obtain approval for a
wide-ranging or comprehensive proposal. Instead, there might be better chance of
advancement if individual issues, or components of a world food security arrange-
ment, were addressed separately. While many in the FAO secretariat took part in
this work, two individuals stood out, Gerda Blau, who eventually became director
of FAO's Commodities and Trade Division, and Mordecai Ezekiel, director of FAO's

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Useful links	World Food Board Proposal MAC/WFY Page-35 0230_553559_08_cha04 International Commodity Clearing House 35 Transactions under the ICCH would tend to interfere with normal trade. And the proposed buffer stock operations were open to the same objections as those of the WFB proposals. In essence, it was evident that key major countries were still not prepared to entrust to a multilateral organization over which they had no control with such potent functions as the management of a world food security arrangement no matter how urgent it was or how it was shaped. As to the continuation of surpluses arising through currency difficulties, the FAO Conference saw no remedy. For those arising from other causes, it recom- mended a more vigorous use of the Interim Co-ordinating Committee for Interna- tional Commodity Arrangements, an institutional remnant of the ITO that never came into being. However, the FAO Conference did establish a purely advisory Committee on Commodity Problems (CCP), to function under the FAO Council, initially to provide advice on surplus problems arising out of balance-of-payments difficulties, which was later extended to review all commodity problems. The CCP continues to function today. In 1952, the CCP was requested to examine the feasibility of establishing an emergency food reserve to be available promptly to countries threatened by famine. Three possibilities were suggested: a stock of food owned by an international agency; a central fund administered by an international agency for the purchase and distribution of emergency food; and emergency food stocks held by national governments for international use. While the central fund idea was generally preferred, no further action was taken at that time. Action was taken, however, on another issue. Attention was turned to the problems arising from the disposal of agricultural surpluses especially as the United States government sought to export on special terms part of the large stocks that had accumulated under its control. The CCP recommended that two steps be taken. First, the establishment of a set of prin- ciples, a code of conduct, to govern the disposal of agricultural surpluses (see below). Second, the establishment of a permanent committee, to be known as the Consultative Subcommittee on Surplus Disposal (CSD), as a subcommittee of the CCP, to monitor continuously the impact of surplus disposal on agricultural production and international trade. The CSD was established in Washington, DC in 1954. It has continued to function to the present time and reports to the FAO Council through the CCP. While attempts to set up some form of world food security arrangement during the first decade of FAO did not succeed, the FAO secretariat continued to keep the issues alive through a series of seminal pioneering studies and reports throughout the 1950s. These publications helped to clarify the issues involved, attempted to facilitate the evolution of an international code of conduct, and constantly sought out new approached for bringing governments together to get something done. Experience had shown that it was not possible to obtain approval for a wide-ranging or comprehensive proposal. Instead, there might be better chance of advancement if individual issues, or components of a world food security arrange- ment, were addressed separately. While many in the FAO secretariat took part in this work, two individuals stood out, Gerda Blau, who eventually became director of FAO's Commodities and Trade Division, and Mordecai Ezekiel, director of FAO's back to top Next page
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