RESTRICTED
PREPARATORY COMMITTEE PC/BFA/2
FOR THE 7December 1994
WORLD TRADE ORGANIZATION
(94-2687)
SUB-COMMITEEE ONBUDGET,
FINANCE AND ADMINISTRATION
TRANSFER OFASSETS, LIABILITIES, RECORDS, STAFF AND
FUNCTIONS OFTHE DIRECTOR-GENERAL FROM
THE ICITO/GATT TOTHE WTO1
General
1. Article VI:1 oftheWTO Agreement states thatthere should beaSecretariat oftheWTO and
Article XVI:2 thattheWTO istoreplace theinstitutional structure oftheGATT andthattheGATT
Secretariat istobecome theWTO Secretariat "totheextent practicable". TheWTO isaneworganization
legally separate from theGATT withadifferent membership. Theinstitutional transition from theGATT to
theWTO therefore requires anagreement between theGATT CONTRACTING PARTIES, theInterim
Commission oftheInternational Trade Organization (ICITO), which onareimbursable basis provides the
GATT CONTRACTING PARTIES withaSecretariat, andtheWTO.
2. Paragraph 8(a)oftheMinisterial Decision ontheEstablishment ofthePreparatory Committee for
theWTO states thatthePreparatory Committee should, "totheextent necessary, takedecisions or,as
appropriate, provisional decisions inadvance oftheestablishment oftheWTO" ontheHeadquarters
Agreement, financial regulations, budget estimates, transfer ofproperty andtransfer ofstaff. (Forthesake
oflegal certainty, itisconsidered thatdecisions taken bythePreparatory Committee should subsequently be
endorsed bytheGeneral Council oftheWTO.)
3. ThestaffoftheGATT Secretariat isthatoftheICITO, created inMarch 1948 toprepare
administratively fortheentry intoforce oftheInternational Trade Organization. Rule 15oftheRules of
Procedure fortheSessions oftheContracting Parties states that:
"The usual duties ofasecretariat shall, byagreement withtheInterim Commission forthe
International Trade Organization, beperformed bytheExecutive-Secretary oftheInterim
Commission onareimburseable basis".
4. TheICITO iscomposed of52countries, notallofwhich arecontracting parties. TheICITO has
decided thatanExecutive Committee of17ofitsmembers, shall "exercise allthepowers oftheInterim
Commission ...". SeeAnnex 1formembership oftheExecutive Committee.
1SeeCRP(94)39(Rev.2)(incorporating CRP(94)40) distributed on30November 1994
totheCommittee onBudget, Finance andAdministration.PC/BFA/2
Page 2
Transfer ofAssets andLiabilities
5. Assets used toadminister theGATT areheldvariously bytheContracting Parties, theGATT (the
Secretariat) andICITO. Forexample, thecontributions totheGATT budget areowed tothe
CONTRACTING PARTIES, whose assets therefore include thearrears incontributions. Theofficial cars
areregistered totheGATT andlibrary books arebought bytheGATT. Thefunds oftheGATT andthe
ICITO aredeposited inbank accounts heldinthename ofICITO/GATT. Thefinancial assets andliabilities
aredetailed intheannual Financial Report bytheDirector-General.
6. Inview ofthevarious ownership ofassets andliabilities, where appropriate thearrangements
should provide fortheir global transfer andnotthetransfer ofindividual contracts.
Private lawcontracts
7. Contracts under private law,such ascontracts forcleaning, maintenance orleasing equipment
normally perish withthedissolution oftheorganization thathasconcluded them. Anyclaims fordamage
must bemetfrom theproperty oftheorganization. Appropriate action willbetaken totransfer them from
ICITO/GATT toWTO. SeeAnnex 2foralistoftheprincipal contracts.
Transfer ofContractual Rights andObligations
8. Financial claims maybetransferred without theconsent ofthedebtor. Thetransfer ofcontractual
rights andobligations mayhowever require theconsent oftheother parties tothecontract andmaythus
have tobenegotiated. Agreements have been concluded inthename oftheCONTRACTING PARTIES,
theGATT andtheICITO, andintheICITO/GATT. Allsuch agreements have been examined withaview
todetermining whether, withthecreation oftheWTO, theyshould bedenounced orrenegotiated.
9. Theprincipal personnel-related agreements arelisted inAnnex 3.Forthemost part, such
agreements make noprovision fortheeventual dissolution oftheorganization and/or itsreplacement by
another organization. Inthemajority ofcases, thetransition willbedealt withbyanexchange ofletters
between thetwosignatories. Incertain cases, itwillbenecessary totakeaformal decision toextend
agreements, onwhich further proposals willbesubmitted later.
GATT Secretariat
10. TheGATT Secretariat istechnically provided bytheInterim Commission fortheInternational
Trade Organization (ICITO), withwhich allstaffcontracts have been concluded. Ideally, allaspects ofthe
conditions ofappointment ofWTO staffshould bedetermined before theestablishment oftheWTO
Secretariat under Article VI:1 oftheWTO Agreement. However, thiswillnotbepossible because the
Preparatory Committee Sub-Committee onBudget, Finance andAdministration wishes these issues tobe
considered inearly 1995, inthecontext ofthereport oftheexternal Management Review. Thistherefore
requires transitional arrangements. Thiscanbedone byICITO continuing toprovide theduties ofa
Secretariat foratransitional period which would endassoon astheWTO hasdetermined theterms and
conditions ofservice forthestaffoftheWTO. Theobjective isthedissolution ofICITO on30June 1995,
preceded bytheoffer ofcontracts tostaffmembers under theprovisions ofArticles VI:3 andXVI:2 ofthe
WTO Agreement.
WTO Secretariat Services fortheGATT 1947; Director-General oftheWTO asDirector-General ofthe
GATT 1947
11. With thetransfer oftheSecretariat totheWTO, GATT 1947 willnolonger have aSecretariat of
itsown. There willbeanagreement between theWTO andtheCONTRACTING PARTIES onthe
servicing oftheGATT 1947 (andtheTokyo Round Agreements) bytheWTO Secretariat.PC/BFA/2
Page 3
12. Therecords oftheICITO andtheGATT willbeheldincustody bytheWTO Secretariat until the
termination oftheGATT 1947 andthentransferred totheWTO. Once transferred, theWTO willhave the
right totreat therecords asitsownproperty.
13. TheDirector-General oftheGATT 1947 willcontinue tofunction asthedepositary oflegal
instruments. Thetransfer agreement willtherefore provide thattheDirector-General oftheWTO willcarry
outthedepositary functions oftheDirector-General totheGATT CONTRACTING PARTIES intheevent
ofthetermination oftheGATT 1947.
Decision
14. Itisfordecision thatatransfer agreement between theICITO, GATT 1947 CONTRACTING
PARTIES andthePreparatory Committee beconcluded toprovide, witheffect from theentry intoforce of
theWTO Agreement, for:
(a) theglobal transfer totheWTO ofallassets andliabilities ofICITO/GATT other thanstaff
contracts;
(b) asatransitional arrangement, theICITO toperform theduties ofaSecretariat onbehalf of
theWTO, onareimbursable basis;
(c) thedissolution oftheICITO on30June 1995 andtheoffer ofcontracts tostaffmembers
under theprovisions ofArticle VI:3 andArticle XVI:2 oftheWTO Agreement, subject to
agreement intheGeneral Council bythatdateontherules andregulations togovern the
terms andconditions ofservice forthestaffoftheWTO;
(d) theWTO Secretariat toprovide Secretariat services toGATT 1947, under acommon
budget andcommon basis ofassessment withasingle payment from each Member or
GATT 1947 Contracting Party (seePC/W/8 w.50/11);
(e) theDirector-General ofGATT ortheDirector-General oftheWTO totakeappropriate
action inrespect ofcontractual arrangements, bothfinancial andonpersonnel matters;
(f) theDirector-General oftheWTO toperform depositary functions oftheDirector-General
oftheGATT 1947 when theGATT 1947 ceases tobeapplied provisionally.PC/BFA/2
Page 4
ANNEX 1
INTERIM COMMISSION
OFTHE INTERNATIONAL TRADE
ORGANIZATION
(ICITO)
Executive Secretary: Mr.Peter D.SUTHERLAND
EXECUTIVE COMMITTEE
Chairman: Elected ateach meeting.
Membership:
Australia Greece
Benelux India
Brazil Italy
Canada Mexico
China Norway
Colombia Philippines
Egypt United Kingdom
ElSalvador United States
France
Terms ofReference:
Toexercise allthepowers oftheInterim Commission including thepower toreplace theExecutive
Secretary ifitshould become necessary.ANNEX 2(English only)PC/BFA/2
Page5CONTRACTOR TYPE OFCONTRACT PERIOD OFCONTRACT REGISTERED NAME
I.Premises andparking
FIPOI Lease 1.7.77 to30.6.97 GATT
Régie Foncière 3boxes underground parking 15.1.92 -31.12.94 GATT
Travaux Publics/ABB Sécheron Parking LesMines 1.10.91 onamonthly basis GATT
SDF Parking RL80(2 Floor +28parking) 1.11.87-28.2.95 GATT
SDF Offices RL80(6 Floor +12parking) 1.11.87-28.2.95 GATT
SDF Offices (RL80)(4 Floor +7parking) 7.2.94-28.2.95 GATT
Régie Foncière Offices Ch.desMines(+ 2places parking ext.) 1.8.92-28.2.95 GATT
CFFParking Parking Ch.Mines Automatic renewal bymonth GATT
EtatdeGenève Parking "LesFougères" 1.7.1977-30.6.97 GATT
II.Leasing
A+ELeasing Laser Printers 1.4.94-31.12.96 ICITO/GATT
A+ELeasing Philips Simultaneous Interpret. 1.3.93-28.2.98 ICITO/GATT
Digital Equipment Computer software, hardware, admin. 1.6.90-1.6.96 ICITO/GATT
Rank Xerox -19Photocopying machines corridors 1.7.90-30.6.95 GATT
-1 " " Library 1.7.91-1.6.96 GATT
III.Other contracts
ONET Cleaning 1.9.93- automat. renewal ICITO/GATT
Manotel Condition fortrainees accommodation (signed 6.4.92) Indefinite (canbebroken witha6months
written notice) GATT
Reuters News agency 6.6.89 automatic yearly renewal GATT
Telecom PTT Telephones, Natel, modems, switchboard FIPOI
IV.Insurance
Union Suisse Assurance Building expires 1.1.97 GATT
Union Suisse Assurance Computer equipment expires 1.1.97 GATT
Union Suisse Assurance Accidents (temporary staff) expires 31.12.98 GATT
Union Suisse Assurance Accidents (travel byair) expires 31.12.94 GATT
Union Suisse Assurance "Responsabilité civile Personnel expires 31.12.98 GATT
Union Suisse Assurance (responsabilité civile studios) validforduration ofcourse GATT
Union Suisse Assurance Official cars yearly frompurchase ofcar
Nationale Suisse Assurance Removals 15.3.95
Nationale Suisse Assurance Accidents (SSAs) 31.12.94
VanBreda Medical Insurance 1.5.93 -automat. renewal ICITO/GATT
Willis Corroon 24-Accident insurance 1.1.93-31.12.97(reconfirmed every 1Jan.) ICITO/GATTPC/BFA/2
Page6CONTRACTOR TYPE OFCONTRACT PERIOD OFCONTRACT REGISTERED NAME
V.Banks
Swiss Bank Corporation
Cash-Management Call A/cNo.CO-199.320.1 Notimelimitation ICITO/GATT
USDollars A/cNo.CO-199.320.2 " ICITO/GATT
Temp. Staff Salary Advance A/cNo.CO-199.320.4 " ICITO/GATT
Rental Guarantee System derecouvrement direct (LCV) Established on16.3.94 withnotime
A/cNo.CO-230.487.2 limitation ICITO/GATT
Bank Scandinave A/cNo.383023/0.01.11 " ICITO/GATT
Banque Populaire Suisse A/cNo.518.10.726912.8 " ICITO/GATT
Lloyds Bank A/cNo.0153282 " ICITO
CCP A/cNo.12-439-3 " ICITO
VISA Contract Phone/Mail order Established on7.10,93 automatic renewal ICITO/GATT
VI.Maintenance contracts
Digital Equipment Corporation SA Switchboard Mvax 2 1.1.95-30.6.95 GATT
Administration Computer M3400 1.1.95-30.6.95 "
" " M3100 1.1.95-30.6.95 "
Usagee feesfor3Sigagip software
contracts "
Bigraph AG Itek(Roneo) 1.1.94-31.12.95 "
Hunkeler AG Roneo equipment Yearly renewal "
Kodak SA Photocopier IM40 1.1.95-31.12.95 "
Photocopiers IM40 (2)&SunStation Renewal in1995 butnotyetconfirmed "
byRoneo
Ducourrier Franking machines (2) Yearly renewal "
Kardex SA Rotating filing system Lektriver l " "
Riesen Roger Coffe machine Cafina " "
TeleGenève SA Cable TV(10plots) " "
Walther Rentsch SA Copier Canon 1020 " "
Messerli AG FAXItachi 210 " "
Xerox Telefaxofswitchboard 7033 " "
Docutech " "PC/BFA/2
Page7CONTRACTOR TYPE OFCONTRACT PERIOD OFCONTRACT REGISTERED NAME
VII.Salecontracts
A)Sales Agents
VanSchaik Bookstore PTY. (South Africa) Sales Contracts Notimelimitation GATT
Alexander Horn (Germany) " " "
R.Eisenschmidt GMBH (Germany) " " "
Carlos Hirsch Srl.(Argentina) " " "
Oficina DelLibro International (Argentina) " " "
D.A.Information Services (Australia) " " "
Gerold &Co.(Austria) " " "
China Financial &Economical (China) " " "
Cyprus Chamber ofCommerce (Cyprus) " " "
Inversiones Michco Ltda.(Colombia) " " "
Eulyoo Publishing Co.Ltd(Korea) " " "
PanKorea Book Corporation (Korea) " " "
World Tariff (United States) " " "
World DataInternational (France) " " "
Asia2000 Ltd(Hong Kong) " " "
Bookwell (India) " " "
Oxford Book &Stationery (India) " " "
R.O.Y. International (Israel) " " "
Libreria Scientifica AEIO (Italia) " " "
Eastern Book Services (Japan) " " "
Matano (Yoshihiko) (Japan) " " "
Fondo deCultura Economic (Mexique) " " "
Infotec (Mexique) " " "
GPLegislation Services (New Zealand) " " "
Everest Media International (Nepal) " " "
Tayyab M.S. Commercial SE(Pakistan) " " "
DeLindeboom-Inor Publika (Netherlands) " " "
I.J.Sagun Enterprises International (Philippines) " " "
Jetspeed Media Inc.(Philippines) " " "
Libraria Rodrigues (Portugal) " " "
Adeco (Switzerland) " " "
Buchhandlung Heinimann (Switzerland) " " "
Library Payot SA(Switzerland) " " "
Index Book Promotion &SE(Thailand) " " "PC/BFA/2
Page8CONTRACTOR TYPE OFCONTRACT PERIOD OFCONTRACT REGISTERED NAME
B.Accredited SaleAgents
Uno-Verlag (Germany) Sales contracts Notimelimitation GATT
Hunter Publications (Australia) " " "
DeLannoy (Belgium) " " "
Renouf Publishing Co.Ltd(Canada) " " "
Munksgaard Book &Subscription (Denmark) " " "
TheMiddle EastObserver (Egypt) " " "
Mundi-Prensa Libros S.A.(Spain) " " "
Unipub (United States) " " "
Akateeminen Kirjakauppa (Finland) " " "
Editions A.Pedone (France) " " "
Librairie duCommerce International (France) " " "
Governement Supplies Agence (Ireland) " " "
Licosa S.P.A. (Italia) " " "
Jippro Co.Ltd(Japan) " " "
Narvesen InfoCenter (Norway) " " "
Martinus Nijhoff International (Netherlands) " " "
HMSO Publications Centre (United Kingdom) " " "
Microinfo Ltd.(United Kingdom) " " "
Office duLivre OlfS.A.(Switzerland) " " "
Fritzes Information Centre (Sweden) " " "
Systematics Studies Unit. (Trinidad, West Indies) " " "PC/BFA/2
Page 9
ANNEX 3
Principal personnel-related agreements
(a) agreement between ICITO andtheUnited Nations JointStaffPension Fund (UNJSPF);
(b) agreement extending thejurisdiction oftheUnited Nations Administrative Tribunal
(UNAT)toICITO/GATTwithrespecttoapplicationsbystaffmembersofICITO/GATT
alleging non-observance ofUnited Nations Joint Staff Pension Fund Regulations;
(c) agreement between theExecutive Secretary ofICITO andtheAdministrative Tribunal
oftheILO(ILOAT) concerning appeals bystaffmembers ofICITO alleging non-
observance, insubstance orinform, oftheterms oftheirappointment;
(d) agreement onajointmedical service (JMS) forUnited Nations andspecialized agencies
atGeneva;
(e) group medical insurance contracts between ICITO/GATT andVanBreda (onbehalf
of"Assurances Générales deFrance");
(f) 24-hour accident insurance policy withWillis Corroon onbehalf ofICITO/GATT;
(g) agreement between theConsultative Committee onAdministrative Questions (CCAQ)
andthe"Association internationale destraducteurs deconférence" (AITC);
(h) agreement between CCAQ andthe"Association internationale desinterprètes de
conférence" (AIC);
(i) certain other agreements fortheprovision oflife,medical andaccident insurance to
staffmembers ortheirdependents onavoluntary basis.