RESTRICTED
PREPARATORY COMMITTEE PC/BFA/W/4
FOR THE 30November 1994
WORLD TRADE ORGANIZATION
(94-2615)
SUB-COMMITTEE ONBUDGET ,
FINANCE AND ADMINISTRATION
TRANSFER OFASSETS, LIABILITIES, RECORDS, STAFF AND
FUNCTIONS OFTHE DIRECTOR-GENERAL FROM
THE ICITO/GATT TOTHE WTO1
General
1. Article VI:1oftheWTO Agreement states thatthere should beaSecretariat oftheWTO
andArticle XVI:2 thattheWTO istoreplace theinstitutional structure oftheGATT andthatthe
GATT Secretariat istobecome theWTO Secretariat "totheextent practicable". TheWTO isa
neworganization legally separate from theGATT withadifferent membership. Theinstitutional
transition from theGATT totheWTO therefore requires anagreement between theGATT
CONTRACTING PARTIES, theInterim Commission oftheInternational Trade Organization
(ICITO), which onareimbursable basis provides theGATT CONTRACTING PARTIES witha
Secretariat, andtheWTO.
2. Decision 8oftheMinisterial Decision ontheEstablishment ofthePreparatory Committee
fortheWTO states thatthePreparatory Committee should, "totheextent necessary, take
decisions or,asappropriate, provisional decisions inadvance oftheestablishment oftheWTO"
ontheHeadquarters Agreement, financial regulations, budget estimates, transfer ofproperty and
transfer ofstaff. (Forthesakeoflegalcertainty, itisconsidered thatdecisions taken bythe
Preparatory Committee should subsequently beendorsed bytheGeneral Council oftheWTO.)
3. ThestaffoftheGATT Secretariat isthatoftheICITO, created inMarch 1948 toprepare
administratively fortheentry intoforce oftheInternational Trade Organization. Rule15ofthe
ICITO Rules ofProcedure 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. The
ICITO hasdecided thatanExecutive Committee of17ofitsmembers, shall"exercise allthe
powers oftheInterim Commission ...". SeeAnnex 1formembership oftheExecutive
Committee.
1SeeCRP(94)39(Rev.2)(incorporating CRP(94)40) distributed on30November 1994
totheCommittee onBudget, Finance andAdministration.PC/BFA/W/4
Page 2
Transfer ofAssets andLiabilities
5. Assets usedtoadminister theGATT areheldvariously bytheContracting Parties, the
GATT (theSecretariat) andICITO. Forexample, thecontributions totheGATT budget areowed
totheCONTRACTING PARTIES, whose assets therefore include thearrears incontributions.
Theofficial carsareregistered totheGATT andlibrary books arebought bytheGATT. The
funds oftheGATT andtheICITO aredeposited inbankaccounts heldinthename of
ICITO/GATT. Thefinancial assets andliabilities aredetailed intheannual Financial Report by
theDirector-General.
6. Inviewofthevarious ownership ofassets andliabilities, where appropriate the
arrangements should provide fortheirglobal transfer andnotthetransfer ofindividual contracts.
Private lawcontracts
7. Contracts under private law,suchascontracts forcleaning, maintenance orleasing
equipment normally perish withthedissolution oftheorganization thathasconcluded them. Any
claims fordamage must bemetfrom theproperty oftheorganization. Appropriate action willbe
taken totransfer them from ICITO/GATT toWTO. SeeAnnex 2foralistoftheprincipal
contracts.
Transfer ofContractual Rights andObligations
8. Financial claims maybetransferred without theconsent ofthedebtor. Thetransfer of
contractual rights andobligations mayhowever require theconsent oftheother parties tothe
contract andmaythushavetobenegotiated. Agreements havebeenconcluded inthename ofthe
CONTRACTING PARTIES, theGATT andtheICITO, andintheICITO/GATT. Allsuch
agreements havebeenexamined withaviewtodetermining whether, withthecreation ofthe
WTO, theyshould bedenounced orrenegotiated.
9. Theprincipal personnel-related agreements arelisted inAnnex 3.Forthemost part,such
agreements make noprovision fortheeventual dissolution oftheorganization and/or its
replacement byanother organization. Inthemajority ofcases, thetransition willbedealtwithby
anexchange ofletters between thetwosignatories. Incertain cases, itwillbenecessary totakea
formal decision toextend agreements, onwhich further proposals willbesubmitted later.
GATT Secretariat
10. TheGATT Secretariat istechnically provided bytheInterim Commission forthe
International Trade Organization (ICITO), withwhich allstaffcontracts havebeenconcluded.
Ideally, allaspects oftheconditions ofappointment ofWTO staffshould bedetermined before the
establishment oftheWTO Secretariat under Article VI:1oftheWTO Agreement. However, this
willnotbepossible because thePreparatory Committee Sub-Committee onBudget, Finance and
Administration wishes these issues tobeconsidered inearly 1995, inthecontext ofthereport of
theexternal Management Review. Thistherefore requires transitional arrangements. Thiscanbe
donebyICITO continuing toprovide theduties ofaSecretariat foratransitional period which
would endassoonastheWTO hasdetermined theterms andconditions ofservice forthestaffof
theWTO. Theobjective isthedissolution ofICITO on30June1995, preceded bytheoffer ofPC/BFA/W/4
Page 3
contracts tostaffmembers under theprovisions ofArticles VI:3andXVI:2 oftheWTO
Agreement.
WTO Secretariat Services fortheGATT 1947; Director-General oftheWTO asDirector-General
oftheGATT 1947
11. With thetransfer oftheSecretariat totheWTO, GATT 1947 willnolonger havea
Secretariat ofitsown. There willbeanagreement between theWTO andtheCONTRACTING
PARTIES ontheservicing oftheGATT 1947 (andtheTokyo Round Agreements) bytheWTO
Secretariat.
12. Therecords oftheICITO andtheGATT willbeheldincustody bytheWTO Secretariat
untilthetermination oftheGATT 1947 andthentransferred totheWTO. Once transferred, the
WTO willhavetherighttotreattherecords asitsownproperty.
13. TheDirector-General oftheGATT 1947 willcontinue tofunction asthedepositary of
legalinstruments. Thetransfer agreement willtherefore provide thattheDirector-General ofthe
WTO 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 oftheWTO Agreement, for:
(a) theglobal transfer totheWTO ofallassets andliabilities ofICITO/GATT other
thanstaffcontracts;
(b) asatransitional arrangement, theICITO toperform theduties ofaSecretariat on
behalf oftheWTO, onareimbursable basis;
(c) thedissolution oftheICITO on30June1995 andtheoffer ofcontracts tostaff
members under theprovisions ofArticle VI:3andArticle XVI:2 oftheWTO
Agreement, subject toagreement intheGeneral Council bythatdateontherules
andregulations togovern theterms andconditions ofservice forthestaffofthe
WTO;
(d) theWTO Secretariat toprovide Secretariat services toGATT 1947, under a
common budget andcommon basis ofassessment withasingle payment from
eachMember orGATT 1947 Contracting Party (seePC/W/8 w.50/11);
(e) theDirector-General ofGATT ortheDirector-General oftheWTO totake
appropriate action inrespect ofcontractual arrangements, bothfinancial andon
personnel matters;
(f) theDirector-General oftheWTO toperform depositary functions ofthe
Director-General oftheGATT 1947 when theGATT 1947 ceases tobeapplied
provisionally.PC/BFA/W/4
Page 4
ANNEX 1
INTERIM COMMISSION
OFTHE INTERNATIONAL TRADE
ORGANIZATION
(ICITO)
Executive Secretary: Mr.Peter D.SUTHERLAND
EXECUTIVE COMMITTEE
Chairman: Elected ateachmeeting.
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 the
Executive Secretary ifitshould become necessary.ANNEX 2(English only)PC/BFA/W/4
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/W/4
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/W/4
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/W/4
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/W/4
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.