121. Telegram From the Mission to the Organization for Economic Cooperation and Development to the Department of State1

CEDTO 1218. Joint State/AID message. Subject: DAC resolution on world food.

1. Following draft recommendation for DAC High Level meeting given to Kristensen and Thorp today for their review of sections relating to them. On receipt their comments, plan circulate to interested delegations as delegation draft, put forward on strictly ad referendum basis. Since desirable to get on with job of negotiating document soonest, request Washington advice on urgent basis.

Begin text (unnecessary words omitted):

DAC, having considered report of preparatory group world food problem,2

1.
Noting that there has been relative stagnation food production in developing regions world in face of rapidly rising populations; that whereas these regions were net food exporters before World War II, they are expected to import grain this year at rate of more than thirty million tons; that stocks in major grain-exporting countries have now been drawn down below desirable levels; and that Director General FAO has stated that unless faster rate of agricultural development can be permanently [Page 369] established developing regions, large sectors of world population will soon be exposed to continuous threat of famine and starvation,
2.
Recognizing that developed countries must continue to supplement food supply of developing countries, and that additional food supplies [and special disaster reserves] might be provided if appropriate conditions could be created to encourage additional production, (Bracketed phrase not included in text circulated, but may be proposed in course negotiations if atmosphere suitable.)
3.
Noting, however, that food imports alone cannot provide permanent solution, since continuation of present trends would lead in relatively near future to situation in which ability of developed countries to supply food would fall far short of requirements,
4.
Considering, therefore, that permanent solution to food problem in less-developed regions of work requires marked increase in rate of growth of agriculture in these regions,
5.
Noting that agricultural sector accounts for preponderant part of total income and employment in developing regions, and that this sector has largest potential for providing savings and manpower needed for balanced economic growth; that this potential is not being effectively realized; and that this may be consequence of lack of adequate emphasis on agriculture in less-developed regions, both on part of countries of these regions and of developed countries which are providing them development assistance,
6.
Recognizing that achievement of accelerated rate agricultural development will require sustained and comprehensive effort on part of governments of developing countries, including such measures as priority attention to food production in development plans; larger allocation of resources, including foreign exchange, to agricultural sector; development of complex of institutions for scientific research, communication of knowledge to farmers, and farm credit; and, perhaps most important, creation of conditions which provide farmers incentive to improve their productivity, and investors incentive to invest funds in agriculture and agriculture-supporting industries,
7.
Considering that aid-giving countries can assist developing countries materially in achievement of increased agricultural productivity, both directly through provision of capital and technical assistance, and indirectly through provision of capital and technical assistance, and indirectly by encouraging private investors in food, chemicals and other related industries to provide both capital and technical aid,
8.
Noting that there is increasing awareness of urgency of food problem in developing regions of world; that various aspects of questions of food aid and of agricultural development are being treated by wide range of international institutions and bilateral aid donors; and that there is a need for more systematic and effective effort to delineate [Page 370] functions of these various institutions to assess extent to which taken together they constitute adequate attack on problem,
9.
Recommends therefore that member governments
A)
Continue, and, where possible, increase their programs of food aid to developing countries, under conditions which will encourage developing countries to take measures to increase their own production on economic basis,
B)
Provide increasing amounts of capital and technical assistance to agricultural sector and to agriculture-related industries in developing countries, giving special attention to those developing countries which are applying domestic policies and measure calculated to encourage increased production on economic basis,
C)
Seek to assure that various consortia and consultative groups of which they are members devote appropriate attention to problem of increasing agricultural productivity in developing countries concerned,
10.
Requests Council of OECD to authorize Secretary General,
A)
To consult with heads of other international organizations, with experts in field of agriculture, and with member governments, concerning
i.
Scope and range of activities of international agencies concerned with various aspects of food and nutrition in developing countries, division of responsibilities among these agencies, and their relations with programs of bilateral donors,
ii.
Possible means to increase supply of foods from more productive regions to areas of scarcity and want,
iii.
Possible means to improve effectiveness of international and bilateral programs aimed at increasing food production in developing countries, and
B)
To report his findings and recommendations to member governments, and to appropriate bodies of OECD,
11.
Requests Chairman of DAC to establish working party on world food problem, which should endeavor through appropriate channels to establish and maintain continuing contact with other international organizations concerned with problem of food and nutrition in less developed regions of world, and, in cooperation with these organizations, consider problems related to efficacy of external assistance in raising agricultural productivity in developing countries, with particular reference to following tasks:
A)
Analysis of data concerning present flow of economic aid to agricultural sector and to agriculture supporting projects in developing countries and assessment of its adequacy in relation to overall development requirements,
B)
Assembly of best available estimates of fertilizer and other inputs such as pesticides and farm machinery required in various [Page 371] regions of developing world during next decade and consideration of possible measures to meet such requirements,
C)
Preparation of more refined estimates of requirements for various types of advisory and technical assistance personnel in agriculture and consideration of ways and means to make more effective use of such personnel, and to supply additional personnel in areas of acute need,
D)
Assembly of data on extent of research problems on food production in developing countries and measures required to make fruits of research usable by farmers; and identification of areas of research where additional donor efforts might be most productive,
E)
On basis of its finding, prepare recommendations for further consideration by DAC and member governments. End text.
Trezise
  1. Source: Department of State, Central Files, AID 1. Limited Official Use; Priority.
  2. Not found.