termined from the figure for military expenditure for the curren financial year, as verified by the international Secretariat. The political authority, in accordance with the voting procedure to be determined, would be limited to choosing between the figur established by the international Secretariat and, in case of rejec tion, the amount of contribution determined according to the procedure agreed upon.

The proposals set out in this memorandum could be given prompt consideration by the Sub-Committee of the Disarmament Commission of the United Nations, if the four Powers represented here gave the necessary instructions to their respective representatives.

78. FRANCE: DRAFT AGREEMENT ON THE FINANCIAL SUPERVISION OF DISARMAMENT AND THE ALLOCATION FOR PEACEFUL PURPOSES OF THE RESULTING FUNDS, AUGUST 29, 19551

The purpose of the present agreement is to institute a financial supervision of military expenditure, together with a system of penalties, for the purpose of encouraging disarmament. It provides for the allocation of the resulting funds for the improvement of levels of living and the development of under-developed areas.

This financial supervision has an economic purpose. By ensuring the automatic transfer of part of the savings effected on military expenditure to orders for goods for peaceful purposes, the agreement averts the threat of an economic crisis which might be brought about by mass disarmament within a short period of time.

The agreement provides certain advantages for States which, in a manner recognized as accurate and complete by the financial body, submit evidence of the budgetary reductions which they have agreed to make. States will agree to reduce their total military expenditure by a percentage that will increase from year to year, the increase in the percentage from one year to the following year being based on the amount of the original defence budget. However, when the reductions are recognized as accurate and complete, this percentage will for the current budgetary year refer only to the actual amount of expenditure, that is to say, to a lower sum.

The sums thus released will be transferred to an international fund which will ensure that they are used in accordance with the criteria laid down by the agreement.

The computation, administration and distribution of these resources will be assured by an International Fund for Development and Mutual Assistance, hereinafter called the "Fund".

Upon the entry into force of the Convention for the reduction of conventional armaments and armed forces, the abolition of weapons of mass destruction and the setting up of a control, the percentage reductions in military expenditure envisaged in the agreement will be calculated in such a way as to correspond to the reductions in conventional armaments and armed forces and the abolition of weapons of mass destruction as provided for in each stage of the Disarmament Convention.

1 UN Document, DC/SC.1/27, pp. 1-4

ARTICLE I POWERS OF THE FUND

The Fund shall collect the resources released by each signatory State in conformity with the provisions of the Agreement or the Disarmament Convention. It shall verify their allocation or proceed to allocate them in accordance with the principles set forth below. The Fund shall comprise the following organs:

(a) an Executive Board, appointed by the States parties to the Convention, on which the contributing and the recipient countries shall be assured of balanced representation;

(b) a Standing Executive Committee;

(c) an international Secretariat under the supervision of a Director.

The Board shall receive and approve the reports of the Standing Executive Committee and of the Director. It shall, on the advice of the Standing Executive Committee, decide upon the disposition of the resources placed at the disposal of the Fund. It shall deal with statutory and general administrative questions.

ARTICLE II-COLLECTION OF RESOURCES

The Standing Executive Committee shall be notified of the programme for the reduction of military expenditure agreed upon jointly by Governments. The programme shall determine the scale of the rates applied to the initial volume of military, expenditure on the basis of which the annual amount of the contribution payable by the States shall be determined. This amount shall be assessed each year against the initial military appropriation of each State.

Nevertheless, if the information supplied by the States is recognized as accurate and complete by the Standing Executive Committee, the percentage shall be applied to the actual amount of military expenditure for the relevant financial year and not to the initial appropriation. The Standing Executive Committee shall, in accordance with these principles, compute the sums to be allocated to the Fund. For this purpose, all documents relating to military expenditure shall be communicated to the Committee.

In particular, it shall ensure that the common definition of military expenditure is interpreted by all States in the same spirit, and to this end it shall request the civil and military budgets that are submitted to the institutions which, under the constitutional procedures of each State, are responsible for voting upon or approving the budget.

It shall lay down criteria and make all practical arrangements for rendering the defence expenditures of the signatory States comparable either among themselves or in relation to the total expenditure of each State. For this purpose, it shall establish a common nomenclature including a list of categories of expenditure of a military nature. It shall then make a comparative study of the documents submitted to it by the signatory States and shall submit a detailed report to the signatory States and, upon the conclusion of a Disarmament Convention, to the Standing Committee provided for therein.

ARTICLE III-ALLOCATION OF RESOURCES

The Standing Executive Committee shall issue general instructions to the Director. It shall supervise the administration and distribution of the resources of the Fund.

The resources shall be allocated in accordance with the following criteria:

(a) one part of the resources made available shall be left at the disposal of each Government, which will thus be able to make such internal transfers as it considers appropriate;

(b) one part of the resources shall also be retained by each State for the economic and financial development of the States or territories which are constitutionally linked to it, the amount being in proportion to the size of the population of such States or territories;

(c) the remaining sums shall be made available to the Fund to be allocated for the development of under-developed areas, and shall be used in a proportion of 75 per cent for orders given to the countries which provide the funds.

In preparing the Statutes of the Fund, the Executive Board of the Fund shall define the relations of the Fund with the United Nations, in particular the Technical Assistance Administration, and with the specialized agencies, such as the International Bank.

79. FRANCE: WORKING PAPER: PROPOSALS CONCERNING THE POWERS OF THE CONTROL ADMINISTRATION, SEPTEMBER 2, 1955 1 I. Not later than five months after the date of his appointment, the director-general shall set up the Control Administration in the form in which it is to function during the initial operations provided for by the convention.

These operations shall begin as soon as the Control Administration has stated that it is ready to discharge its functions, and in any case not later than the above-mentioned time-limit of five months, that is to say, not later than six months after the entry into force of the convention.

II. So long as the sole task of the Control Administration is to ensure that armed forces and conventional armaments do not exceed the level reached on ....... and that the appropriations for armed forces and armaments do not exceed the amount of the expenditure under these heads during the year ending

(a) The Control Administration shall establish in the territory of all the States parties a network of control posts in ports, at railway junctions, on motor highways, at aerodromes and in military camps. It shall be the task of these posts, which shall be provided with appropriate liaison facilities, to ensure that no dangerous concentrations of land, air or naval forces occur. They shall also make preparations for the functioning of the control organs to be established for the purpose of carrying out subsequent

measures.

(b) The Control Administration shall receive from the States parties, and the States parties shall be bound to supply, full in

I UN Document, DC/SC.1/30, pp. 1-4.

formation on the level of their armed forces and conventional armaments.

(c) The Control Administration shall have free access to documents relating to appropriations for military requirements. On the expiry of the time-limit established by the convention, the Control Administration shall present its conclusions to the Permanent Committee and the States parties in a general report.

III. When the time comes for the Control Administration to ensure that the first half of the reductions of armed forces and conventional armaments has been carried out, it shall possess, in addition to those above-described, the following powers:

(a) the Control Administration shall exercise its powers in respect of conventional armed forces and conventional armaments, whether in active services or in reserve; States shall be obliged to supply the Administration with the necessary information for this purpose;

(b) as the control posts referred to in paragraph II above will already have been established, the Control Administration shall have permanent access, in respect of conventional armaments and armed forces, to all military organs of command and administration and to all armed forces and the military establishments on which they are based;

(c) the Control Administration shall receive from States, and States shall be bound to supply, the documents concerning appropriations in the current year for military requirements, the information to be presented according to a standard form; and it shall have free access to all accounting documents relating to such appropriations;

(d) the Control Administration shall ensure that the resources made available have been transferred in accordance with the provisions of the special agreement proposed by the French delegation on 29 August 1955 (DC/SC.1/27);

(e) irrespective of the reports it makes whenever it thinks fit, the Control Administration shall, on the expiry of the time-limit established for carrying out this first part of the reductions or whenever it considers itself in a position to do so, submit its conclusions to the Permanent Committee and the States parties. IV. On the expiry of the time-limit established for carrying out the operations referred to in paragraph III above, the Control Administration shall:

(1) report to the Permanent Committee on the carrying-out of these operations;

(2) state whether it is in a position to exercise the powers conferred upon it for carrying out the subsequent disarmament operations.

If, on the basis of this report, the Permanent Committee unanimously declares that:

(1) the first half of the reductions has been carried out;

(2) the Control Administration is in a position to exercise the powers conferred upon it for carrying out the subsequent disarmament operations,

the provisions relating to such operations shall come into force.

If the declaration of the Permanent Committee is not unanimous, & period of six months shall elapse before the subsequent operations under the convention come into force.

Not later than the expiration of that period and on the basis of a report by the Control Administration, the Permanent Committee shall make a further declaration.

or

It may then unanimously either:

declare that the conditions necessary for applying the subsequent provisions of the convention have been met, and these shall then forthwith enter into force,

fix a second period which shall not exceed three months. Failing a unanimous decision, the matter shall forthwith be referred to the Security Council.

A similar procedure shall be followed if at the expiration of the second period the Permanent Committee does not unanimously consider that the conditions necessary for applying the provisions relating to the subsequent operations have been fulfilled.

V. Before the operations subsequent to those provided for in paragraph III above are begun, the rights and powers of the Control Administration shall be broadened as follows:

The Control Administration shall have the prerogatives specified in paragraph III above. It may, in addition, at all times and in all places exercise control, carry out investigations and obtain such documents, information and reports as it considers necessary in order to ensure: that the disarmament programme is actually being carried out in each State so far as concerns armed forces, conventional armaments, equipment and relevant installations and establishments used, or capable of being used, for the storage, maintenance or manufacture of armaments and equipment; that, so far as weapons of mass destruction are concerned, the relevant provisions of the convention are applied to the same extent and simultaneously in all States parties; that, as regards nuclear energy, the installations, establishments, equipment and materials are abolished or used in accordance with the terms of the convention.

The list of such installations and establishments and any changes which may be made therein shall be communicated to the Control Administration by the States parties.

Within the scope of its functions, the Control Administration shall organize and carry out on-the-spot investigations and aerial reconnaissance in order to verify this information and to identify all installations and establishments. It shall ensure continuous control over nuclear installations, establishments and stockpiles.

While these measures are being carried out and at the expiration of the prescribed period, the Control Administration shall prepare reports in accordance with the conditions laid down in paragraph IV above.

VI. At the expiration of the period prescribed for the whole of the ! disarmament operations, the Permanent Committee shall express an opinion on whether the convention as a whole has been complied with. If it does not unanimously agree that the convention has been complied with, it shall forthwith bring the matter to the attention of the Security Council.