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TFD/PC/182

such action could be taken bilaterally. The second recommendation was that, as a further step, there should be arrangements atnongst a group of countries representing a substantial share of the volume of Eaat/West trade, whereby their central banks report to an agent such claitns and liabilities arising in their bilateral accounto as they may winh to subrnlt for multilateral compensation; on the basls of these reports the agent would make specific proposals for compensatiun. The transactions would, ln each caso, reąuire the consent of all partles concerned. The Executive Secretary of the E,C,E, was invited to prepare a draft of specific provisions designed to put into effect this latter recommendation, to communicate this draft to all governments participating in the E^C^E, and, after receiving and circulating the viev;s cf these governments, to take such further action in consultation with them as may be appropriate.

l^jl. The fuli text of these recommendations, adopted by the

Committee on the Development of Trade of the E.C,E, on 12th October,

1955* is given in Annex I to the present notę#

# _

15»' To sum up, the most interesting feature of this conference was the generally expressod feeling of tiie experts present that the conditions for multilateralisaticn cf payments between eastern and western countries were beginning to be fulfilled, and that over the next five to ten years considerable progress could be madę, Suggestions for a multilateral compensation system have been a regular feature of the annual sessions of the Committee on the Development of Trade of the E»C,E., and many cf the experts who nroposed the setting-up of such a system, at the same time expressed disbelief in its practical results, The reason why the ezperts confined themselves to a recommendation to set up a multilateral compensation system is probably t^; at their terms of raference were directed primarily to this point and because this was the only system with which all' of them were fatniliar. Other arrangements wculd be possible, e.g. arrangements on the lines of the "Hague Club”, and the mandate given to the E.C.E. Secretariat to make specific proposals, in consultation with experts from interested governments, may enable them to evolve a mere flexible scheme. The only significant result of the conference was this mandate. it seems probable that a draft will be circulated to the governments participating in the E.C.E. during the next three months. If a sufficient number of governments show lnterest, it is possible, that there may be further discussions after that period. However, at present, the next tneeting fixed Is the annual meeting of the E«C#E. Committee on the Development of Trade in October, 195^.