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internal organisation and administration. There were to be three main sectors and twelve principal divisions with clear designations and responsibilities. The Governing Body was just about to consider the next biennial budget for the biennium 1976-77. was likely to propose increased expenditure which, in part, was a reflection of the depreciation of the United States dollar against the Swiss franc. But, fortunately, as was shown by the table on page 2 of the paper, the UK contribution had remained fairly steady. This was largely due to the fact that the UK had been successful in negotiating a lower scale of contributions. The second half of the paper dealt with the ILO's Technical Assistance Programme. Only a small part of that programme is financed from the Regular Budget; by far the larger part is financed by the UNDP with the ILO acting as an agent for the execution of projects. The UK contri- butes to the UNDP on a voluntary basis and HMG's policy has been to aim at keeping technical assistance funds in the Regular Budget, to which we contribute on a compulsory basis, to a low level.

29. In reply to a question by Mr Naylor, who was impressed at the number of British experts working for the ILO, Mr Morgan explained that any decline in British influence within the ILO would not be due to the lower UK rate of financial contribution, but to the pressure now being exerted by the developing countries, which claimed that an increasing proportion of experts should be recruited from the Third World. It was likely, therefore, that the ILO, in future, would recruit on a wider geographical basis. Mr Foggon mentioned the existence within the ODM of the International Recruit- ment Unit and the selection exercised by recipient Governments in deciding the country from which an expert should come. Another factor in the UK was the diminishing reservoir of those with experience relevant to the needs of developing countries.

30. Mr Healy, in commenting on the future role of the ILO, referred to current and foreseen financial difficulties as typified by the over-spending on the current budget. The Employers' Group supported a reduction in activities and financial economies, whereas the Workers' Group in the Governing Body pressed continuously for an expansion of activities without regard to financial considera- tions. The employers want the ILO to do less but to do it better.

31. Mr Hargreaves referred to the TUC's previous concern over technical projects which had often appeared to be the victims of inadequate preliminary planning and of subsequent poor supervision. The attitude of the UNDP had been that these were matters within its own jurisdiction but the TUC view had been that more attempts should be made on the ILO's governing Body to exercise selective control of projects and give a subsequent assessment of the results achieved. In reply Mr Morgan said that four or five years ago there was general dissatisfaction over the way projects were formulated and implemented: but a limited confidential survey conducted by our Labour Attachés had shown that the situation was not as serious as had been feared. The Governing Body's Committee on Operational Programmes has since taken a closer look at the problem and a very effective Joint Inspection Unit has been established by the UNDP.

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