CAB129-33 — Page 455

24

Page 455.

83. Currency of Contributions.-Unlike the United Nations and the majority of Specialised Agencies which require payment to be made in dollars or other hard currencies, UNESCO permits Member States to pay in the currency of their choice. There was a strong argument from many delega- tions that, in order to avoid exchange losses, all Member States should pay in dollars. The United Kingdom was unable to accept this proposal and the normal practice of paying in the most convenient currency was maintained. Nineteen countries agreed to pay in U.S. dollars, eighteen countries in U.S. dollars, pounds sterling or French francs, and seven countries, including the United Kingdom and the Commonwealth countries in pounds sterling or, if they chose, in U.S. dollars. The United Kingdom contribution will be paid in pounds sterling convertible only into French francs.

84. Administration of the Revolving Fund.-The Revolving Fund is a loan which may not exceed $3,000,000 from Member States to the Organisa- tion. $2,000,000 have already been called in and the Conference authorised the collection of the last $1,000,000. Normally payment is made to the Revolving Fund in the same proportion as payment to the Budget. This year it was agreed by exception that the Budget surplus for 1947, instead of being surrendered to the Budget for 1949 should be absorbed into the Revolv- ing Fund for 1949. The Budget surplus for 1947 and other miscellaneous adjustments totalled $836,232, so that Member States need find only the balance of $163,768. This will mean that the actual monetary payment of each Member State, although its percentage contribution may have risen, will in fact be less than in 1968.

85. The particular purposes for which the Revolving Fund may be used were also laid down in a special resolution.

86. Amendments to Financial Regulations.-We need mention only one of the two regulations adopted since it was one which the United Kingdom opposed in principle. It arises from a point raised in the Auditors' Report and concerns the use of funds which have not actually been committed for expenditure during the year for which they were authorised. Normally such funds are surrendered to the next consecutive Budget. Funds, however, which were committed but not actually spent could remain available for liquidation and payment for a period of three years from the first day of the financial · year to which they relate. The resolution which was adopted authorised, in exceptional circumstances, the retention of surplus funds for the same period of three years even if they have not legally been committed, provided that there are good reasons why they should not be surrendered. If such good reasons exist, the funds may be retained, provided that the Executive Board is satisfied that they will be committed without undue delay. The United Kingdom Delegation opposed this amendment since it felt that all funds should be directly authorised by the General Conference and that none should be allowed to carry over from one year to the next without being revoted by the General Conference.

87. Miscellaneous Income.-The Organisation derives some income from the sales of its publications and from reimbursement for the loan of its per- sonnel to other organisations for short periods. The United Kingdom Dele- gation supported a resolution to absorb this revenue into a separate fund which could be used to print and sell additional copies of the publications providing such revenue or to hire additional temporary staff for short periods. 88. Preparation of Budget Estimates.-The United States Delegation secured the adoption of a motion whereby the Budget, which the Director- General prepares and on which the Executive Board submits a report, should