RESTRICTED BUDGET/1 20 July, 1949,

CONTRACTING PARTIES Third Session

BUDGET

ESTIMATES

FOR 1950

Note by the Executive Secretary

1.

As indicated in

GATT/CP.3/55,

the contributions of the

Contracting Parties for the period 16 August 1948 to 31 December 1949 will be absorbed by the expenditure up to the end of the
It will, therefore, present session of the CONTRACTING PARTIES. be necessary for the Contracting Parties to approve at this session budget estimates for 1950 and to agree on the ways and means to
finance such expenditure.

These estimates approved by the Contracting Parties, should be at the disposal of the Executive Committee of the ICITO when it approves its budget for 1950 at
the end of this month.
As the financing of the ICITO budget may

require action by the General Assembly of the United Nations, it is essential that the question of the GATT budget be considered

without delay by the Contracting Parties.

2.

As the Contracting Parties have not yet taken decisions re-

garding the programme of work for 1950, it is not possible to The data contained in submit a draft budget at this time Annex I are therefore tentative suggestions which may usefully serve as a basis for discussion in the Working Party which the Contracting Parties may decide to appoint to prepare budget
estimates for consideration by them.

3.

Before the matter is referred to a Working Party, it

is,

however, necessary to decide on the basis to be adopted for the repayment to the ICITO of Secretariat service provided by the

Budget /1 page 2

Interim Commission.

As the Contracting Parties will remember,

the budget estimates for the present period were the result of
a compromise between a scheme by which the GATT expenditure would

be financed through the ICITO budget and a scheme by which the

GATT budget would be covered by direct contributions of the

Contracting Parties.

The expenditure relating to the conference

services and the preparatory documentation was charged to the GATT budget but the repayment of Secretariat services provided

by the Interim Commission was assessed on a flat rate of 10% for ICITO personnel budget for periods between sessions and 50%
during sessions.

Moreover, no repayment was contemplated for

As, in fact, the time of the ICITO

various items of expenditure incurred by the ICITO on behalf of

the Contracting Parties.

staff was to

a very

large extent devoted to GATT work, even during

the Inter-session periods, the percentages accepted at the last

session did not provide for a full repayment of the services The ICITO has therefore met out of its own funds, a

rendered.

substantial part of the GATT expenditure during the current periods

4.

If the more accurate percentages of 50% for periods between

90% during sessions had been adopted instead of the arbitrary percentages of 10% and 50% accepted in the absence of
sessions and

sufficiently accurate estimates of the workload, and if the ICITO had claimed the repayment of the other expenditure incurred

budget for the current period should have been increased by 68,847, to bring the total estimate from $76,000 on to $144 ,847,
on behalf of the GATT, the GATT

5.

The Executive Conmmttee of the Interim Commission

on

accepted

the present basis for repayment

the assumption that this

arrangement would terminate by the end of 1949 and that the ITO

Budget/1 page 3
would be set up in the early part of 1950.

As, however, the

prospects of the entry into force of the Havana Charter in the

early part of 1950 are somewhat remote, it would seem unlikely

that the ICITO, which at the present juncture can only rely on
the advances so far authorized by the General Assembly of the

United Nations, would be in a position to continue the present

arrangement, unless the Contracting Parties are prepared to raise their contributions so as to cover all the charges incurred
by theICITO on their behalf after 31 December, 1949.
6.
The suggestions contained in Annex I are based on that

assumption and the repayment of the Secretariat services has been

calculated cn the basis cf 50% of the ICITO personnel budget for periods between sessions and 90% during sessions. The

Conatracting Parties may, however, find it useful

to discuss

whether a simpler method of settlement could not be devised, such as the payment to the ICITO of a lump sum of, say, $100,ooo
a year, as a contribution to the salaries and allowances of the

ICITO staff.
7.

The Contracting Parties will also have to decide on the

scale to be adopted for the assessment of the contributions in

1950.

Calculations have been made on the basis of a total budget of $250,000 and are reproduced in Annexes II and III. Annex II
contains the contributions which would

be paid by the present

contracting parties and the acceding governments if the present

scale is retained, and Annex IIl the contributions to be paid by

those governments if the countries listed in Category F were to

contribute a minimum amount of $2,000 and if the shares of the

other countries were based

on the

U.N. scale of contributions.

Page 4
Tentative Estimates for

Contracting Parties 1950

Part I Meetings

$
22,500

$
99,500

GATT 4th Session Tariff Negotiations Other Meetings TOTAL OF PART I

70,000 (1)
7, 000

99 ,500

Part II Secretariat
Common Staff Costs GATT 4th Session Tariff Negotiations Remainder of 1950
Other Pay Items Experts and Consultants Travel 12 ,090.50

48,362.00 47,010.66
10,000

107,473.16
10,000

Travel

on official business

5,000

5,000
2,500
7,500

Communcations

Freight

1,500

Common Services
Office Rooms

Documents Reproduction Reimbursement to UN for and Administrative Financial Services Other Services
TOTAL OF PART II
Total of Parts I and
II

2,920 6,075

3, 750

2,462

15,207

248,680,61
24-689.00

PART III Unforeseen

10%offor

going

TOTAL OF PARTS I, Less

II& III

24,868.00 273,548..5

(L)

23. 644

TOTAL
(1)
The estimate for the Tariff Negotiations is based on the assumption that negotiations will be held away from Geneva; if they are held in Geneva the saving on per diem will amount to $23,644.

249,904,16

Page 5
Contracting Parties Badgetary Justifications
PART I Meetings
Part II Secretariat

(See A)

Common Staff Costs

Inter-Session

Sessions

50% of ICITO estimate for salaries and 0llowances (See Appendix 1) - 90% of ICITO estimate
The estimrato provides for two

Other Pay Items

Exports and Consultants:

port in questions relating to Article XVIII.

Travel:

the services of anv export to propare the report contempated in Article XIV of tho GATT and of an ex-

Consultants for four months; this provision will enable the Contracting Parties to secure

Provision has boon made for travelling expensos of consltantsand members of the Soerotariat.

Communications

50% of ICITO ostimato for 1949, for Expenditure on cable tolographs, wireless and long-distance telephones.
The estimate of $7,500 would cover the printing of the Schedules roemlting from the 1950 Tariff Nogotiations on the assmp tion that the number of rgos would not exceed 300 and that the distribution will be strictly limited.

Printing:

Freight:
Common Services Off ice Rooms

20% of ICITO estimate for 1940.

5o% of Ostimatodexpenditure of - ICITO in 1950. -No provision has been made on the assmption that a Translatormh..
the ICITO
It
has

Documents Reproduction-reprodoction Translation

Re imbursoment to UN for

terpretrr will be recruited by

Secrotariatr.

Administrativeand and Financial ServicesServices Other Services

PART III Unforeseen

boon

agreed with the

that this change shall be 1% of total yearly expenditure

50% of

UN

ICITO in 1950.

4''iftture

of

10% of the budget is the usual provision for unforeseen expenditures.

70,0 0.
Page 6

BUDGETRY JUSTIFICATIONS

PART 1 MEETINGS

See Appendix II for Charges The estimates are based on:

GATT 4th Session lasting 1 month and hold in Goneva Tariff Negotiations lasting 4 months and hold away from Goneva.
4

tS h ESSION

ITEM

Basis

of

Hstirmato

TARIFF NEGOTIATIONS cost cost Basis of Estimate g

I

Approx 6 Gdo 2 Dis- 3,379 5 Seoreterios Grade 4 14,877 1 Documenets Officer. tribution staff 4 Secretaries Gd.o$ Grde U 2 Precis Writers1 Messenger DistribuGrade 10 tion Clerk -Grade 2 1 Research Assistant Grade 15 2 Precis Writers-Gde _.____________ . Meeting Rooms Confernce-40 Meet.2,340 -1 =Conference 96Meet 4 Stib-Comittee Sub-Comittee -o 384 Meetings (total) 50-Meetings Office Office - 40 rooms - 36 rooms 1,200 pages English 7 Documents 1,000 pages English _7 1,000 pages Frn _ Reproduction _1,200 pages Frencoh Frend Translation 1,000 pages E/F 5,00 1 200 pages 6,000 Interprettion 90 Meetings 1,935 96 Meetings ) .l. .(1 addit, interpret Per Diem all regular staff

Temporary Assistance (gross intornrtional salary rates)

TraveN l O -:_ j

Can be estimated. vaen. pro it is known where the rioria Tariff Negotiat ions

Hotel Reserva- 72 Delogatos

tions

.____________

._____________

are tobe held

36

:_.._;_._t

Stationery

Based on 1948 cost

.__ Corranioations, Nominal figurr

1is

460 Eased, on Anneoy Cost ...,0 supplies onlyAfrr

on th

642

eightt

;no

estimate-possiblei

250 Based on Annecy west for 1st 4 months

To cover miscella-

1,230

Other Expenditwre.

To cover miscella-. neous expenditure

..

1400

neous

expenditure

2,183

TOT_

page 7

Appendix I

ICITO COMMON STAFF COSTS FOR 1950

1.Sal rie
2 .Alowance

Salaries

$126,680
$ 34,500

Allowances (Staff
etc.)

pension fund expatration allowances

Total

$161,180

ICITO Manning Table for 1950 Established Posts (net-salary rates)

No. of posts
1.Exce 1Dep

Grade

Salary Range

Expenditure
for 1950

Executive Secretary
Deputy Executive Sec.

$11,000 plus $3,000 Rep.

allowance
-

$14,000

Special Assistant
2adv

$10, 000 $ 9,200

$11,000

110,500

$ 9,200
-

Advisers

1Infor

Information Officer
Junior Adviser

5Juni

1Trean
5Rese

Translator-Interpreter
Research Assistants

$ $ $ $
$

7,450

$10,300

$15,750
$ 8,300

7,450 $10,300 6,700 -$ 9,200 3,700 _$ ,200 5,450 $ 7,450

9
-

$ 6,70O $ 6,700

$28,450
$, 4,4410
$ 3,210

Admi 1AS

Administrative Assi stant Administrative Assistant

Secretary

$ 3,970
3,210
0
2.

$ 5,450
4,410
3,970
0

b.4$

1Seer

%0

4Se r
2sten

Secretaries

2,610

39570
3,210

Stenographers

2,369

$ 3,210 $11, ,280 $ 4,9.7

22

$126,680

Page 8

Appendix II
*

SCHEDULE OF UN

CHARGES FOR REIMBURSABLE

SERVICES
:

:SERVICE
a

.
:

UNIT AND CHARGE

...

:1

.
I

a~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~a

Language Services

English Translation into Spanish

Interpretation
Documentation

Translation into French or

$5
$5

per page per page

per

$21.50
s

Interpreter meetings

Duplicating
.

$4.20
e

per

1000 impressions (including paper etc)

Stencils
a
0

$0.90

per stencil

supplied

cut and

Space

a)

Conference Rooms
Category A
Category B

$200 per meeting

e

t
. 0

$ 24

per
per

meeting

Category C

;
e
.

$
$

6
1

meeting

b)

Offices

per unit per day

Reservations
a

Hotel Reservations Travel Reservations

$0.50 per reservation

$7.50 per journey arrangeoutside France and Switzerland

Stationery
4

Replacement Cost plus 5% overhead

Freight
a

$3.

per

collection on coneignment

These are the ourrent rates and are likely to be changed by 1950. Finance Office estimate that the only charges likely to be heavier are those for meeting rooms,the other charges are likely to be a little less.

page

1950 Contribution for each Contracting Party on the basis of the 1949scale (See GATT /CP.2/41and

GATT/CP.3/27)

Category & Country CATEGORY A

United States United Kingdom
i

CATEGORY B
France

CATEGORY C
Belgium Canada

!
. B1

CATEGORY

Australia Brazil China Netherlands S. Africa Sweden

CATEGORY E Czechoslovakia India

New Zealand Pakistan Denmark

;i
.

Norway

Italy CATEGORY F
Burma Cuba Lebanon

Ceylon

Luxembourg

Colomb ia Chile Dominican Republic Finland Greece Haiti Liberia Nicaragua

Syria

S. Rhodesia

B
.

Uruguay

_.f ,
ANNEX XI
29,800

Contribution of each country in dollars

59,600

18,900

18,900.
29,800

14, 900 14,900

10,158.34 10,158.34

10, 158.33 10, I58. 33

10.158.33

10,158.33

5,957.15 5,957 .14 5,957 .14 5,957 14 5 ,957.14 5. 957 .14

41,700

2 .437,50 2,437.50 2,437.50 2,437.50 2,437.50 2,437.50 2, 437.50 2,437.50 2,437.50 2,437.50 2,437.50 2,437.50 2,437.50 2,437.50

2,437.50

5 ,437 50

39. 000

250,000
850,000~~~~~~!Ix

Scale

ANNEXIII of Contrbutionsof the Contractig Partiesfor

This scale of contributions is on the following basis:1)The budget for 1950 would amount to % 250,000 2 )ountries who pay $900 at present should pay $2,000 5) The remaining countries should pay contributions based on the scale of their contributions to United Nations.

Country

Contribution in Dollars
2,000 2 ,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000

Burma Ceylon Chile Columbia Cuba Dominician Republic

2,000

Finland Greece Haiti Lobnnon Liberia

Syria Uruguny

Luxembourg Nicarauga S. Rhodesia

Austrialia Belgium Brazil Canada Chiine Czechos lovkia Denmark
France

2,000
5 ,079.40 3,488 .0 8,240.40

32,000

4.,774.20

15,456.20 2 310 .80

India Italy Natharlnnds New Zealand Norwa y Pakistan Swden Union of S. Africa United Kingdom United Stntos of Americao TOTAL

15,456.20 8,371.20 4,774.20

3,597..00

2,027.40.

5, 144.80

1,809.40
2,877.60

1,308.00

1,308.00

29,277.40 102,699 .80

218,000
250,000