CAB129-33 — Page 436

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It is at this level that we specially welcome public criticism and professional advice, and it is here that we think that the United Kingdom National Com- missionage proЯde an invaluable and representative concensus of British opinion.

14. We must also report upon matters other than those concerning the programme. There has been criticism about the administration of the Organisation and about the laxity of financial control. We think it necessary to emphasise what you have already reported in the House of Commons that the loss sustained in 1945 through the dishonesty of a temporary employee occurred before the Organisation was established, in the days of the Preparatory Commission, and that it was detected and corrected in 1946. There have also been allegations that the members of the Secretariat are paid abnormally high salaries. After the most careful study of these matters at the Third Session of the General Conference, we affirm without hesitation that, whatever faults we found, they were not faults of a careless administra- tion. The United Kingdom Delegation, however, disapproved strongly of the system of administration which it found in force, particularly of the rigid division in function and responsibility between administrative and pro- gramme personnel. We secured almost unanimous support for a resolution requesting the Director-General to examine critically the organisation of the staff and to take steps to ensure that heads of programme departments, properly invested with privileges of high rank and salary, should carry a corresponding measure of authority and responsibility for administrative and financial control of their own departments. A substantial reduction in the numbers of staff at present carrying out purely administrative duties and in the funds necessary to employ them should follow.

15. We examined with care the financial control of the Organisation's Funds and found no trace of irresponsible expenditure or careless accounting. The Auditor's Report was entirely satisfactory. We considered that the administration of funds was sometimes, if anything, too tightly controlled, with the result that programme activities were held up because of the slow release of funds. We believe that if the resolution referred to above is effectively carried out, it will go some way to make control more flexible without reducing its efficiency.

16. The Conference examined the salary and allowance rates of the staff in relation to the high cost of living in Paris, to the rates paid to members of the Secretariat of the United Nations and other Specialised Agencies, and to those paid in many diplomatic missions in Paris. As a result we are able to report that we share the view of the Conference that UNESCO's salary scales are not too high. In saying this we do not wish to be regarded as supporting the entire system of grading posts for the various salary rates at present in force. We are, however, conscious of the need to offer attractive rates of salary if people of high quality are to be induced to accept the uncertainties and other conditions of international service, for we are well aware that even when attractive salary scales are offered it still remains exceedingly difficult to secure staff.

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17. In order to carry out the programme of work and to maintain the necessary administrative services, a Budget of £2,107,826 was proposed to the Conference. These estimates were scrutinised with very great care and the United Kingdom Delegation took upon itself the task of pressing for substantial reductions in the proposed total. We are now able to report that the Conference finally approved a Budget of £1,935,323. This represents