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Mr. SLACK. We also have a supplemental request for fiscal year 1977 in the amount of $1,120,000 for the appropriation entitled International Conferences and Contingencies.

We will insert the justifications at this point in the record. [The justifications follow:]

APPROPRIATION: INTERNATIONAL CONFERENCES AND CONTINGENCIES

Appropriation to date: $7,035,000; request: $1,120,000.

Amended appropriation requested: $8,155,000.

PURPOSE AND NEED FOR SUPPLEMENTAL FUNDS

To provide funds for U.S. participation in a Middle East Peace Conference ($770,000) and the Integrated Program for Commodities of the United Nations Conference on Trade and Development ($350,000).

For an additional amount for "International conferences and contingencies," $1,120,000, to remain available until expended, of which not to exceed $27,500 may be expended for representation allowances as authorized by section 901 of the act of August 31, 1946, as amended (22 U.S.C. 1131) and for official entertainment.

EXPLANATION OF LANGUAGE CHANGE

An increase of $1,120,000 in the International Conferences and Contingencies appropriation is requested to provide necessary funds to support U.S. participation in a Middle East Peace Conference and for U.S. participation in the integrated program for commodities of the United Nations Conference on Trade and Development (UNCTAD).

JUSTIFICATION OF ESTIMATE

Purpose and Need for Supplemental Appropriation

A supplemental appropriation of $1,120,000 is requested to provide for two major conference requirements which are of the utmost importance to the United States: (1) $770,000 to meet the cost of U.S. participation in a Middle East Peace Conference, and (2) $350,000 to provide for U.S. participation in the integrated program for commodities of the United Nations Conference on Trade and Development (UNCTAD).

Provision for these requirements could not be made in the regular appropriation requests for fiscal year 1977 because the economic and political developments which bring about these meetings were not known when the basic budget request was proposed.

We have examined our 1977 appropriation for the possibility that current funds could be reprogrammed and designated for MEPC and UNCTAD use but we have found this will not be possible.

A. Middle East Peace Conference (MEPC)

A supplemental appropriation of $770,000 is requested to meet the estimated costs of the U.S. participation in a Mideast Peace Conference which we expect to be held in Geneva during fiscal year 1977.

President Carter and Secretary Vance have assigned a high priority among their foreign policy objectives to a serious effort to achieve progress toward a negotiated settlement in the Middle East. Among the options for resuming such negotiations, the reconvening of the Middle East Peace Conference at Geneva is accepted by all the parties as an essential element in this effort, a move which therefore seems highly probable during the second half of this year.

The Conference will be a resumption of the brief Mideast Peace Conference of December 1973 which was instrumental in establishing the framework for the peace efforts subsequently undertaken by the Secretary of State. This area has seen four severe wars in a period of 25 years; the last was the costly October 1973 war which threatened to involve powers outside the area. Due to our major interests in the Middle East and our desire to avoid further hostilities which could lead to a big power confrontation, this country has taken a major role in the peace efforts in the area. The United States and the Soviet Union served as co-chairman of the 1973 conference and would perform the same function at a resumed session when agreed upon.

The Conference will seek to bring a permanent peace to this strategically crucial area and permit the building of firm security arrangements among the belligerents. The participants must cope with the complex and emotional array of problems that divide the region including such questions as secure boundaries, the status of Jerusalem and settlement of Palestinian refugees.

The Conference will probably include the four original invitees (Israel, Egypt, Syria. and Jordan) besides the two sponsors. U.N. Secretary General Kurt Waldheim has agreed to commit the U.N. and to participate as an observer.

Conference facilities and a secretariat will be provided by the United Nations in Geneva. The cost for these services will be shared by the participants. Four languages (English, Russian, Arabic, and Hebrew) are likely to be used. We estimate that the U.S. share of total international conference costs for a projected 90-day session will be approximately $368,000.

Due to the broad range of subjects of vital interest to the United States that will be covered, our delegation will require experts on the political, military, and economic aspects of the Middle Eastern situation. We expect it to consist of 15 Middle East experts, headed by a senior diplomat. As the talks progress the delegation will have to be supplemented from time to time by specialists in particular matters such as oil, refugee affairs, et cetera. Ten supporting personnel will be required. The cost of travel, per diem and other support for the delegation for a 90-day period is estimated at $402,000, for a total cost to the United States of $770,000.

B. United Nations Conference on Trade and Development Integrated Program for Commodities (UNCTAD)

A supplementary appropriation of $350.000 is requested to meet the costs of U.S. participation in the meetings of UNCTAD's Integrated Program for Commodities. The fourth session of the United Nations Conference on Trade and Development (UNCTAD IV) held in Nairobi, Kenya adopted by consensus on May 30, 1976, a major resolution establishing an integrated program for commodities. This series of meetings is considered the most important forum for North/South discussions today. The implications will impact on the entire range of North/South relations for years to come.

This resolution asked the Secretary General of UNCTAD to convene (1) a series of preparatory meetings, followed by negotiating conferences on 18 specified commodities, and (2) appropriate preparatory meetings and a negotiating conference on a common fund. The preparatory meetings on commodities are scheduled to end no later than February of 1978 and the commodity negotiating conferences no later than the end of 1978. The commodities concerned include bananas, bauxite, cocoa, coffee, copper, cotton and cotton yarns, hard fibers, and products, iron ore, jute and products, maganese, meat, phosphates, rubber, sugar, tea, tropical timber, tin, and vegetable oils including olive oil, and oilseeds. The negotiating conference on a common fund is scheduled to begin no later than March, 1977.

In addition, the Trade and Development Board of UNCTAD was instructed to establish an intergovernmental committee to coordinate the preparatory work and the negotiations, deal with major policy issues, and coordinate the implementation of measures under the integrated program. We expect the meetings which will be convened under this instruction to No. 66 during 1977-78.

This budget request addresses commodities and related matters, which comprise one of the most crucial and exacerbated issues in North-South relations. In contrast to the confrontational atmosphere which prevailed earlier, a more reasonable attitude concerning the specific problems of the developing countries now seems to exist on all sides. In the more favorable climate for negotiations, we see an opportunity to safeguard the basic interests of the United States while responding to the legitimate economic objectives of the Third World. The request of $350,000 covers the cost of travel, per diem and administrative support at the conference site for the 33 meetings scheduled to be held during the calendar year 1977. The cost of U.S. participation in the 1978 meetings is included in a Budget Amendment request for fiscal year 1978. We expect the meetings to be held in Geneva and that the United States will fund about eight delegates for each meeting. So far, one preliminary meeting has been held on each of the following subjects: cooper, hard fibers, jute, a common fund and the integrated program.

Previous Appropriations for the MEPC

In late 1973 it became apparent that the situation in the Middle East would require a conference for peace negotiations. The Department therefore requested and the Congress appropriated $1,700,000 of which $900,000 was provided for U.S. participation in the negotiations (Public Law 93-245). The difficulties involved in these negotiations caused the talks to continue longer than originally anticipated and it became necessary to request an additional amount of $442,000 which Congress appropriated in Public Law 94-32, and subsequently extended to September 30, 1976 (Public Law 94-157). The talks stalled in the meantime, without prospect of specific resumption, and funds were permitted to expire as of September 30, 1976, $436,000 was unobligated at that time and returned to the Treasury.

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Mr. SLACK. Page 22 of the justifications indicate that $770,000 of this amount is for the U.S. participation in the Middle East Peace Conference and $350.000 is for the Integrated Program for Commodities of United Nations Conferences on Trade and Development.

Do you have a general statement on this request, Mr. Secretary? Mr. TOUSSAINT. I do, Mr. Chairman.

Mr. SLACK. Please proceed in your own way.

GENERAL STATEMENT

Mr. Toussaint. I will pick the highlights of the statement and, with your permission, ask that it be inserted in full in the record. Mr. SLACK. Without objection.

INTERNATIONAL CONFERENCES AND CONTINGENCIES

Mr. Chairman: I appreciate this opportunity to speak to this subcommittee on the supplemental appropriation request for $1,120,000 for two items of major consequence in U.S. foreign policy.

Both items were unforeseen when we made our regular request for fiscal year 1977. One concerns support for U.S. participation in a resumed Middle East Peace Conference which will bear on the future peace and security of an area of utmost interest to the United States. The other has to do with a series of Conferences sponsored by the U.N. Conference for Trade and Development (UNCTAD) concerning the 18 basic commodities of primary importance to world affairs. The outcome of these meetings could well alter the course of trade between the developed and developing world.

The first request is for $770,000 to support the cost of U.S. participation in the Middle East Peace Conference which we expect will resume its activities in the second half of this year. The second item is for $350,000 to pay for U.S. participation in an estimated 33 UNCTAD meetings on commodities in fiscal year 1977.

MIDDLE EAST PEACE CONFERENCE

The administration has set as one of its primary foreign policy goals the resumption of serious negotiations in the Middle East, which we now expect will at least initially take the form of a reconvening of the Middle East Peace

Conference, of which the United States is cochairman, together with the U.S.S.R. The MEPC first met at the ministerial level in December of 1973 in Geneva. The conference was called by the United States and U.S.S.R. pursuant to U.N. Security Council Resolution 338 which was adopted unanimously on October 22, 1973, and called for negotiations to "start between the parties concerned under appropriate auspices aimed at establishing a just and durable peace in the Middle East."

The first session of the MEPC did not last long and was followed by a series of negotiations among the participants in the October 1973 war. These negotiations which were facilitated by the U.S. Secretary of State achieved three interim accords and also established a climate in the area in which negotiations of an overall settlement may be possible. We hope that a resumed MEPC later this year will achieve significant progress toward this goal.

We have assumed a conference of 90-days duration which would involve the participants of the 1973 Conference (Israel, Egypt, and Jordan) as well as Syria (which was invited to but did not attend the first session). The United States and the Union of Soviet Socialist Republics were the cochairmen for the first session and will serve in a similar capacity in a resumed conference.

U.N. Secretary General Kurt Waldheim has promised to commit U.N. facilities and a U.N. secretariat. We expect the U.S. share of the costs of the conference to be a little more than $368,000. The remainder of the $770,000 will go to support the U.S. delegation. Of this amount, $15,000 will be earmarked for representation.

UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT INTEGRATED PROGRAM FOR COMMODITIES (UNCTAD)

Our second request is for $350,000 to meet the costs of U.S. participation in the meetings of UNCTAD's integrated program for commodities. The fourth session of UNCTAD held in Nairobi, Kenya adopted by consensus on May 30, 1976 a major resolution establishing an integrated program for commodities. The resolution requested the secretary general of UNCTAD to convene (1) a series of preparatory meetings, followed by negotiating conferences on 18 specified commodities, and (2) appropriate preparatory meetings and a negotiating conference on a common fund. The preparatory meetings on commodities are scheduled to end no later than February of 1978 and the commodity negotiating conferences no later than the end of 1978. The negotiating conference on a common fund is scheduled to begin in March of this year. We are estimating that 66 meetings dealing with the 18 commodities and the common fund will be held over a 2-year period. ending in 1978. Thirty-three of these meetings are included in this request. We plan to send about eight delegates to each meeting which are expected to be held in Geneva. Preliminary meetings have already been held on copper, hard fibers, jute, a common fund and the integrated program. We expect the representational requirements to be quite heavy and have included in the request $12,500 for the fiscal year 1977.

Mr. Chairman, this request addresses one of the most crucial issues facing us at the present time, that of commodities and related problems. This issue is closely related to the energy problem. Therefore, the results of the endeavors of these meetings will, without doubt, affect the efforts being made to solve that problem as well as those of North-South relations. We are hopeful that these meetings will be successful. In contrast to the confrontational atmosphere which has been paramount until recently, a more reasonable attitude concerning the specific problems of the developing countries now seems to exist on all sides. In the more favorable climate for negotiations, we believe there is an opportunity to safeguard the basic interests of the United States while responding to the legitimate economic objections of the Third World.

Mr. Chairman, this concludes my statement. I will be most happy to answer any questions which you may have.

PRIOR APPROPRIATIONS FOR THE MIDDLE EAST PEACE CONFERENCE (MEPC)

Mr. SLACK. How much has been appropriated to date for the Middle East Peace Conference? Would you like to provide that total? Mr. MENTER. Yes, sir, we will provide it for the record.

Mr. SLACK. All right. Also I would like to know whether or not all of that amount is obligated?

Mr. MENTER. Yes, sir.

Mr. SLACK. And if not, how much is currently available.

Mr. MENTER. Yes, sir.

Mr. SLACK. Very good.

[The information follows:]

Middle East Peace Conference

Amount appropriated to date.

Amount that was obligated__
Amount currently available---

1 Availability of approximately $436,250 expired on Sept. 30, 1976.

RESUMPTION OF MEPC

$442,000 5,750 10

Mr. SLACK. When do you anticipate resumption of the conference? Mr. TOUSSAINT. It is impossible to be precise about that, Mr. Chairman. With a new administration and a changing international situation the possibiilty is good toward the latter half of this year.

Mr. SLACK. Are we likely to have additional requests for the conference at a later time?

Mr. TOUSSAINT. That is a possibility, Mr. Chairman.

UNCTAD MEETINGS ON COMMODITIES

Mr. SLACK. Have any funds been appropriated for the integrated program for commodities?

Mr. TOUSSAINT. For our participation in the meetings?

Mr. SLACK. Yes.

Mr. TOUSSAINT. No, sir.

Mr. SLACK. Where are these meetings to be held and when?

Mr. TOUSSAINT. They are to be held primarily in Geneva. They will begin in the very near future, within the next 2 weeks.

Mr. WALKER. Some are already underway.

Mr. SLACK. What countries would be participating?

Mr. TOUSSAINT. It would be a variety of countries, depending upon the commodities being discussed at a particular time.

Mr. SLACK. If you could supply something for the record, we would appreciate it.

Mr. TOUSSAINT. We will supply a list of commodities and the counties expected to participate.

The information follows:]

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