8.
The Meeting decided to opt for the intergovernmental form, with
membership open to Governments only and provided guidance to the UNCTAD
secretariat on how to revise the relevant articles in the draft agreement
in order to express clearly that while Governments are the only members
recognized by the proposed corporation, they may designate national insurance
or reinsurance institutions, or other national entities, to take care of the
practical and operational aspects of the project, including the acquisition
of the shares of the corporation. However, such a substitution would operate
on behalf of and under the entire responsibility of the member Governments
concerned.
9.
IV. CESSIONS TO THE CORPORATION
A large majority of participating delegations declared themselves in
favour of guaranteed cessions to the proposed corporation, either in the form
of a fixed percentage of all reinsurance treaties placed abroad by each market
or, alternatively, of a minimum volume of acceptable reinsurance business
directed to the corporation by each and every participating Asian country.
When explaining their position, these delegations stated that a constant and
guaranteed flow of business to the corporation was an indispensable pre-
requisite for its technical and financial stability and that this supply of
business could not be obtained otherwise at least during the initial stages
but through firm commitments by all Governments concerned.
10.
Two delegations, however, supported in part by a third delegation,
declared that although they were aware of the need for the corporation to
secure, right from the outset, a sizable volume of acceptable reinsurance
business, the structure of their market and its legislative framework did
not allow their Governments to intervene and to guarantee cessions to the
corporation, which would have to compete with any other foreign professional
reinsurer and acquire business in the same way. For the above reasons the
delegations in question felt unable to recommend to their Governments the
adoption of the draft of Protocol A, which proposed the establishment of
agreed cessions in favour of the Asian Reinsurance Corporation.
11.
The question of whether or not the above countries could become full
members of the corporation by signing the proposed agreement and by acquiring
which entails an obligation of agreed cessions, was debated at great length.
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