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Summary of the "International Tropical Timber Agreement" is available from the UNEP Register of International Treaties and Other Agreements in the Field of the Environment.

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BH837.txt

           INTERNATIONAL TROPICAL TIMBER AGREEMENT (1983)

Entry into Force: 1 April 1985, provisionally

The Parties to this Agreement,

Recalling the Declaration and the Programme of Action on the
Establishment of a New International Economic Order adopted by the
General Assembly,

Recalling resolutions 93 (IV) and 124 (V) on the Integrated Programme for
Commodities adopted by the United Nations Conference on Trade and
Development at its fourth and fifth sessions,

Recognizing the importance of, and the need for, proper and effective
conservation and development of tropical timber forests with a view to
ensuring their optimum utilization while maintaining the ecological
balance of the regions concerned and of the biosphere,

Recognizing the importance of tropical timber to the economies of
members, particularly to the exports of producing members and the supply
requirements of consuming members,

Desiring to establish a framework of international co-operation between
producing and consuming members in finding solutions to the problems
facing the tropical timber economy,

Have agreed as follows:


                              Chapter I

                              OBJECTIVES


                              Article 1

                              OBJECTIVES

With a view to achieving the relevant objectives adopted by the United
Nations Conference on Trade and Development in its resolutions 93 (IV)
and 124 (V) on the Integrated Programme for Commodities, for the benefit
of both producing and consuming members and bearing in mind the
sovereignty of producing members over their natural resources, the
objectives of the International Tropical Timber Agreement, 1983
(hereinafter referred to as "this Agreement") are:

    (a) To provide an effective framework for cooperation and
consultation between tropical timber producing and consuming members with
regard to all relevant aspects of the tropical timber economy;

    (b) To promote the expansion and diversification of international
trade in tropical timber and the improvement of structural conditions in
the tropical timber market, by taking into account, on the one hand, a
long-term increase in consumption and continuity of supplies, and, on the
other, prices which are remunerative to producers and equitable for
consumers, and the improvement of market access;

    (c) To promote and support research and development with a view to
improving forest management and wood utilization;

    (d) To improve market intelligence with a view to ensuring greater
transparency in the international tropical timber market;

    (e) To encourage increased and further processing of tropical timber
in producing member countries with a view to promoting their
industrialization and thereby increasing their export earnings;

    (f) To encourage members to support and develop industrial tropical
timber reforestation and forest management activities;

    (g) To improve marketing and distribution of tropical timber exports
of producing members;

    (h) To encourage the development of national policies aimed at
sustainable utilization and conservation of tropical forests and their
genetic resources, and at maintaining the ecological balance in the
regions concerned.


                              Chapter II

                              DEFINITIONS

                              Article 2

                              DEFINITIONS

For the purposes of this Agreement:

1. "Tropical timber" means non-coniferous tropical wood for industrial
uses, which grows or is produced in the countries situated between the
Tropic of Cancer and the Tropic of Capricorn. The term covers logs,
sawnwood, veneer sheets and plywood. Plywood which includes in some
measure conifers of tropical origin shall also be covered by this
definition.

2. "Further processing" means the transformation of logs into primary
wood products, semi-finished and finished products made wholly or almost
wholly of tropical timber.

3. "Member" means a Government or an intergovernmental organization
referred to in article 5 which has consented to be bound by this
Agreement whether it is in force provisionally or definitively.

4. "Producing member" means any country with tropical forest resources
and/or a net exporter of tropical timber in volume terms which is listed
in annex A and which becomes a party to this Agreement, or any country
with tropical forest resources and/or a net exporter of tropical timber
in volume terms which is not so listed and which becomes a party to this
Agreement and which the Council, with the consent of that country,
declares to be a producing member.

5. "Consuming member" means any country listed in annex B which becomes a
party to this Agreement, or any country not so listed which becomes a
party to this Agreement and which the Council, with the consent of that
country, declares to be a consuming member.

6. "Organization" means the International Tropical Timber Organization
established in accordance with article 3.

7. "Council" means the International Tropical Timber Council established
in accordance with article 6.

8. "Special vote" means a vote requiring at least two thirds of the votes
cast by producing members present and voting and at least 60 per cent of
the votes cast by consuming members present and voting, counted
separately, on condition that these votes are cast by at least half of
the producing members present and voting and at least half of the
consuming members present and voting.

9. "Simple distributed majority vote" means a vote requiring more than
half of the votes cast by producing members present and voting and more
than half of the votes cast by consuming members present and voting,
counted separately.

10. "Financial year" means the period from 1 January to 31 December
inclusive.

11. "Freely usable currencies" means the Deutsche mark, the French franc,
the Japanese yen, the pound sterling, the United States dollar and any
other currency which has been designated from time to time by a competent
international monetary organization as being in fact widely used to make
payments for international transactions and widely traded in the
principal exchange markets.


                              Chapter III

                     ORGANIZATION AND ADMINISTRATION

                              Article 3

               ESTABLISHMENT, HEADQUARTERS AND STRUCTURE 
            OF THE INTERNATIONAL TROPICAL TIMBER ORGANIZATION

1. The International Tropical Timber Organization is hereby established
to administer the provisions and supervise the operation of this
Agreement.

2. The Organization shall function through the International Tropical
Timber Council established under article 6, the committees and other
subsidiary bodies referred to in article 24, and the Executive Director
and staff.

3. The Council shall, at its first session, decide on the location of the
headquarters of the Organization.

4. The headquarters of the Organization shall at all times be located in
the territory of a member.

                              Article 4

                   MEMBERSHIP IN THE ORGANIZATION

There shall be two categories of membership in the Organization, namely:

    (a) Producing; and 

    (b) Consuming.

                              Article 5

            MEMBERSHIP BY INTERGOVERNMENTAL ORGANIZATIONS

1. Any reference in this Agreement to "Governments" shall be construed as
including the European Economic Community and any other intergovernmental
organization having responsibilities in respect of the negotiation,
conclusion and application of international agreements, in particular
commodity agreements. Accordingly, any reference in this Agreement to
signature, ratification, acceptance or approval, or to notification of
provisional application, or to accession shall, in the case of such
intergovernmental organizations, be construed as including a reference to
signature, ratification, acceptance or approval, or to notification of
provisional application, or to accession, by such intergovernmental
organizations.

2. In the case of voting on matters within their competence, such
intergovernmental organizations shall vote with a number of votes equal
to the total number of votes attributable to their member States in
accordance with article 10. In such cases the member States of such
intergovernmental organizations shall not be entitled to exercise their
individual voting rights.


                              Chapter IV

                 INTERNATIONAL TROPICAL TIMBER COUNCIL

                              Article 6

        COMPOSITION OF THE INTERNATIONAL TROPICAL TIMBER COUNCIL

1. The highest authority of the Organization shall be the International
Tropical Timber Council, which shall consist of all the members of the
Organization.

2. Each member shall be represented in the Council by one representative
and may designate alternates and advisers to attend sessions of the
Council.

3. An alternate representative shall be empowered to act and vote on
behalf of the representative during the latter's absence or in special
circumstances.

                              Article 7

                 POWERS AND FUNCTIONS OF THE COUNCIL

1. The Council shall exercise all such powers and perform or arrange for
the performance of all such functions as are necessary to carry out the
provisions of this Agreement.

2. The Council shall, by special vote, adopt such rules and regulations
as are necessary to carry out the provisions of this Agreement, including
its own rules of procedure and the financial and staff regulations of the
Organization. Such financial regulations shall, infer alia, govern the
receipt and expenditure of funds under the Administrative and Special
Accounts. The Council may, in its rules of procedure, provide for a
procedure whereby it may, without meeting, decide specific questions.

3. The Council shall keep such records as are required for the
performance of its functions under this Agreement.

                              Article 8

              CHAIRMAN AND VICE-CHAIRMAN OF THE COUNCIL

1. The Council shall elect for each calendar year a Chairman and a
Vice-Chairman, whose salaries shall not be paid by the Organization.

2. The Chairman and the Vice-Chairman shall be elected, one from among
the representatives of producing members and the other from among the
representatives of consuming members. These offices shall alternate each
year between the two categories of members, provided, however, that this
shall not prohibit the re-election of either or both under exceptional
circumstances, by special vote of the Council.

3. In the temporary absence of the Chairman, the Vice-Chairman shall act
in his place. In the temporary absence of both the Chairman and the
Vice-Chairman, or in the absence of one or both of them for the rest of
the term for which they were elected, the Council may elect new officers
from among the representatives of the producing members and/or from among
the representatives of the consuming members, as the case may be, on a
temporary basis or for the rest of the term for which the predecessor or
predecessors were elected.

                              Article 9

                       SESSIONS OF THE COUNCIL

1. As a general rule, the Council shall hold at least one regular session
a year.

2. The Council shall meet in special session whenever it so decides or at
the request of:

    (a) The Executive Director, in agreement with the Chairman of the
Council; or

    (b) A majority of producing members or a majority of consuming
members; or

    (c) Members holding at least 500 votes.

3. Sessions of the Council shall be held at the headquarters of the
Organization unless the Council, by special vote, decides otherwise. If
on the invitation of any member the Council meets elsewhere than at the
headquarters of the Organization, that member shall pay the additional
cost of holding the meeting away from headquarters.

4. Notice of any sessions and the agenda for such sessions shall be
communicated to members by the Executive Director at least six weeks in
advance except in cases of emergency, when notice shall be communicated
at least seven days in advance.

                              Article 10

                         DISTRIBUTION OF VOTES

1. The producing members shall together hold 1,000 votes and the
consuming members shall together hold 1,000 votes.

2. The votes of the producing members shall be distributed as follows:

    (a) Four hundred votes shall be distributed equally among the three
producing regions of Africa, Asia-Pacific and Latin America. The votes
thus allocated to each of these regions shall then be distributed equally
among the producing members of that region;

    (b) Three hundred votes shall be distributed among the producing
members in accordance with their respective shares of the total tropical
forest resources of all producing members; and

    (c) Three hundred votes shall be distributed among the producing
members in proportion to the average of the values of their respective
net exports of tropical timber during the most recent three-year period
for which definitive figures are available.

3. Notwithstanding the provisions of paragraph 2 of this article, the
total votes allocated to the producing members from the African region,
calculated in accordance with paragraph 2 of this article, shall be
distributed equally among all producing members from the African region.
If there are any remaining votes, each of these votes shall be allocated
to a producing member from the African region: the first to the producing
member which is allocated the highest number of votes calculated in
accordance with paragraph 2 of this article the second to the producing
member which is allocated the second highest number of votes, and so on
until all the remaining votes have been distributed.

4. For purposes of the calculation of the distribution of votes under
paragraph 2 (b) of this article, "tropical forest resources" means
productive closed broadleaved forests as defined by the Food and
Agriculture Organization of the United Nations (FAO).

5. The votes of the consuming members shall be distributed as follows:
each consuming member shall have 10 initial votes, the remaining votes
shall be distributed among the consuming members in proportion to the
average volume of their respective net imports of tropical timber during
the three-year period commencing four calendar years prior to the
distribution of votes.

6. The Council shall distribute the votes for each financial year at the
beginning of its first session of that year in accordance with the
provisions of this article. Such distribution shall remain in effect for
the rest of that year, except as provided for in paragraph 7 of this
article.

7. Whenever the membership of the Organization changes or when any member
has its voting rights suspended or restored under any provision of this
Agreement, the Council shall redistribute the votes within the affected
category or categories of members in accordance with the provisions of
this article. The Council shall, in that event, decide when such
redistribution shall become effective.

8. There shall be no fractional votes.

                              Article 11

                   VOTING PROCEDURE OF THE COUNCIL

1. Each member shall be entitled to cast the number of votes it holds and
no member shall be entitled to divide its votes. A member may, however,
cast differently from such votes any votes which it is authorized to cast
under paragraph 2 of this article.

2. By written notification to the Chairman of the Council, any producing
member may authorize, under its own responsibility, any other producing
member, and any consuming member may authorize, under its own
responsibility, any other consuming member, to represent its interests
and to cast its votes at any meeting of the Council.

3. When abstaining, a member shall be deemed not to have cast its votes.

                              Article 12

             DECISIONS AND RECOMMENDATIONS OF THE COUNCIL

1. The Council shall endeavour to take all decisions and to make all
recommendations by consensus. If consensus cannot be reached, the Council
shall take all decisions and make all recommendations by a simple
distributed majority vote, unless this Agreement provides for a special
vote.

2. Where a member avails itself of the provisions of article 11,
paragraph 2, and its votes are cast at a meeting of the Council, such
member shall, for the purposes of paragraph 1 of this article, be
considered as present and voting.

                              Article 13

                        QUORUM FOR THE COUNCIL

1. The quorum for any meeting of the Council shall be the presence of a
majority of producing members and a majority of consuming members,
provided that such members hold at least two thirds of the total votes in
their respective categories.

2. If there is no quorum in accordance with paragraph 1 of this article
on the day fixed for the meeting and on the following day, the quorum on
the subsequent days of the session shall be the presence of a majority of
producing members and a majority of consuming members, provided that such
members hold a majority of the total votes in their respective
categories.

3. Representation in accordance with article 11, paragraph 2, shall be
considered as presence.

                              Article 14

       CO-OPERATION AND CO-ORDINATION WITH OTHER ORGANIZATIONS

1. The Council shall make whatever arrangements are appropriate for
consultation or co-operation with the United Nations and its organs, such
as the United Nations Conference on Trade and Development (UNCTAD), the
United Nations Industrial Development Organization (UNIDO), the United
Nations Environment Programme (UNEP), the United Nations Development
Programme (UNDP) and the International Trade Centre UNCTAD/GATT (ITC),
and with the Food and Agriculture Organization of the United Nations
(FAO) and such other specialized agencies of the United Nations and
intergovernmental, governmental and non-governmental organizations as may
be appropriate.

2. The Organization shall, to the maximum extent possible, utilize the
facilities, services and expertise of existing intergovernmental,
governmental or nongovernmental organizations, in order to avoid
duplication of efforts in achieving the objectives of this Agreement and
to enhance the complementarity and the efficiency of their activities.

                              Article 15

                        ADMISSION OF OBSERVERS

The Council may invite any non-member Government or any of the
organizations referred to in articles 14, 20 and 27 concerned with
tropical timber to attend as observers any of the meetings of the
Council.

                              Article 16

                     EXECUTIVE DIRECTOR AND STAFF

1. The Council shall, by special vote, appoint the Executive Director.

2. The terms and conditions of appointment of the Executive Director
shall be determined by the Council.

3. The Executive Director shall be the chief administrative officer of
the Organization and shall be responsible to the Council for the
administration and operation of this Agreement in accordance with
decisions of the Council.

4. The Executive Director shall appoint the staff in accordance with
regulations to be established by the Council. At its first session, the
Council shall, by special vote, decide the number of executive and
professional staff the Executive Director may appoint. Any changes in the
number of executive and professional staff shall be decided by the
Council by special vote. The staff shall be responsible to the Executive
Director.

5. Neither the Executive Director nor any member of the staff shall have
any financial interest in the tropical timber industry or trade, or
associated commercial activities.

6. In the performance of their duties, the Executive Director and staff
shall not seek or receive instructions from any member or from any
authority external to the Organization. They shall refrain from any
action which might reflect on their positions as international officials
ultimately responsible to the Council. Each member shall respect the
exclusively international character of the responsibilities of the
Executive Director and staff and shall not seek to influence them in the
discharge of their responsibilities.


                              Chapter V

                      PRIVILEGES AND IMMUNITIES

                              Article 17

                      PRIVILEGES AND IMMUNITIES

1. The Organization shall have legal personality. It shall in particular
have the capacity to contract, to acquire and dispose of movable and
immovable property, and to institute legal proceedings.

2. The Organization shall, as soon as possible after the entry into force
of this Agreement, seek to conclude with the Government of the country in
which the headquarters of the Organization is to be located (hereinafter
referred to as the "host Government") an agreement (hereinafter referred
to as the "Headquarters Agreement") relating to such status, privileges
and immunities of the Organization, of its Executive Director, its staff
and experts, and of representatives of members, as are necessary for the
purpose of discharging their functions.

3. Pending the conclusion of the Headquarters Agreement referred to in
paragraph 2 of this article, the Organization shall request the host
Government to grant, within the limits of its national legislation,
exemption from taxation on remuneration paid by the Organization to its
employees, and on the assets income and other property of the
Organization.

4. The Organization may also conclude, with one or more countries,
agreements to be approved by the Council relating to such capacity,
privileges and immunities as may be necessary for the proper functioning
of this Agreement.

5. If the headquarters of the Organization is moved to another country,
the member in question shall, as soon as possible, conclude with the
Organization a headquarters agreement to be approved by the Council.

6. The Headquarters Agreement shall be independent of this Agreement. It
shall, however, terminate:

    (a) By agreement between the host Government and the Organization;

    (b) In the event of the headquarters of the Organization being moved
from the country of the host Government; or

    (c) In the event of the Organization ceasing to exist.

                              Chapter VI

                               FINANCE

                              Article 18

                          FINANCIAL ACCOUNTS

1. There shall be established two accounts: 

    (a) The Administrative Account; and 

    (b) The Special Account.

2. The Executive Director shall be responsible for the administration of
these accounts and the Council shall make provision in its rules of
procedure therefor.

                              Article 19

                         ADMINISTRATIVE ACCOUNT

1. The expenses necessary for the administration of this Agreement shall
be brought into the Administrative Account and shall be met by annual
contributions paid by members in accordance with their respective
constitutional or institutional procedures and assessed in accordance
with paragraphs 3, 4 and 5 of this article.

2. The expenses of delegations to the Council, the committees and any
other subsidiary bodies of the Council referred to in article 24 shall be
met by the members concerned. In cases where a member requests special
services from the Organization, the Council shall require that member to
pay the costs of such services.

3. Before the end of each financial year, the Council shall approve the
administrative budget of the Organization for the following financial
year and shall assess the contribution of each member to that budget.

4. The contribution of each member to the administrative budget for each
financial year shall be in the proportion which the number of its votes
at the time the administrative budget for that financial year is approved
bears to the total votes of all the members. In assessing contributions,
the votes of each member shall be calculated without regard to the
suspension of any member's voting rights or any redistribution of votes
resulting therefrom.

5. The initial contribution of any member joining the Organization after
the entry into force of this Agreement shall be assessed by the Council
on the basis of the number of votes to be held by that member and the
period remaining in the current financial year, but the assessment made
upon other members from the current financial year shall not thereby be
altered.

6. Contributions to the first administrative budget shall become due on a
date to be decided by the Council at its first session. Contributions to
subsequent administrative budgets shall become due on the first day of
each financial year. Contributions of members in respect of the financial
year in which they join the Organization shall be due on the date on
which they become members.

7. If a member has not paid its full contribution to the administrative
budget within four months after such contribution becomes due in
accordance with paragraph 6 of this article, the Executive Director shall
request that member to make payment as quickly as possible. If that
member has still not paid its contribution within two months after such
request, that member shall be requested to state the reasons for its
inability to make payment. If at the expiry of seven months from the due
date of contribution, that member has still not paid its contribution,
its voting rights shall be suspended and an interest charge shall be
levied on its late contribution at the central bank rate of the host
country until such time as it has paid in full its contribution, unless
the Council, by special vote, decides otherwise.

8. A member whose rights have been suspended under paragraph 7 of this
article shall remain liable to pay its contribution.

                              Article 20

                            SPECIAL ACCOUNT

1. There shall be established two sub-accounts under the Special Account:

    (a) The Pre-Project Sub-Account; and 

    (b) The Project Sub-Account.

2. The possible sources of finance for the Special Account shall be:

    (a) The Second Account of the Common Fund for Commodities, when it
becomes operational;

    (b) Regional and international financial institutions; and

    (c) Voluntary contributions.

3. The resources of the Special Account shall be used only for approved
projects or for pre-project activities.

4. All expenditures under the Pre-Project SubAccount shall be reimbursed
from the Project SubAccount if projects are subsequently approved and
funded. If within six months of entry into force of this Agreement the
Council does not receive any funds for the Pre-Project Sub-Account, it
shall review the situation and take appropriate action.

5. All receipts pertaining to specific identifiable projects shall be
brought into the Special Account. All expenditures incurred on such
projects, including remuneration and travel expenses of consultants and
experts, shall be charged to the Special Account.

6. The Council shall, by special vote, establish terms and conditions on
which it would, when and where appropriate, sponsor projects for loan
financing where a member or members have voluntarily assumed full
obligations and responsibilities for such loans. The Organization shall
have no obligations for such loans.

7. The Council may nominate and sponsor any entity with the consent of
that entity, including a member or members, to receive loans for the
financing of approved projects and to undertake all the obligations
involved, except that the Organization shall reserve to itself the right
to monitor the use of resources and to follow up on the implementation of
projects so financed. However, the Organization shall not be responsible
for guarantees voluntarily provided by individual members or other
entities.

8. No member shall be responsible by reason of its membership in the
Organization for any liability arising from borrowing or lending by any
other member or entity in connection with projects.

9. In the event that voluntary unearmarked funds are offered to the
Organization, the Council may accept such funds. Such funds may be
utilized for pre-project activities as well as for approved projects.

10. The Executive Director shall endeavour to seek, on such terms and
conditions as the Council may decide, adequate and assured finance for
projects approved by the Council.

11. Contributions for specified approved projects shall be used only for
the projects for which they were originally intended, unless otherwise
decided by the Council in agreement with the contributor. After the
completion of a project, the Organization shall return to each
contributor for specific projects the balance of any funds remaining pro
rata to each contributor's share in the total of the contributions
originally made available for financing that project, unless otherwise
agreed to by the contributor.

                              Article 21

                           FORMS OF PAYMENT

1. Contributions to the Administrative Account shall be payable in freely
usable currencies and shall be exempt from foreign-exchange restrictions.

2. Financial contributions to the Special Account shall be payable in
freely usable currencies and shall be exempt from foreign-exchange
restrictions.

3. The Council may also decide to accept other forms of contributions to
the Special Account, including scientific and technical equipment or
personnel, to meet the requirements of approved projects.

                              Article 22

                   AUDIT AND PUBLICATION OF ACCOUNTS

1. The Council shall appoint independent auditors for the purpose of
auditing the accounts of the Organization.

2. Independently audited statements of the Administrative Account and of
the Special Account shall be made available to members as soon as
possible after the close of each financial year, but not later than six
months after that date, and be considered for approval by the Council at
its next session, as appropriate. A summary of the audited accounts and
balance sheet shall thereafter be published.

                              Chapter VII

                         OPERATIONAL ACTIVITIES

                              Article 23

                               PROJECTS

1. All project proposals shall be submitted to the Organization by
members and shall be examined by the relevant committee.

2. In order to achieve the objectives set out in article 1, the Council
shall examine all project proposals in the fields of research and
development market intelligence, further and increased processing in
developing producing member countries, and reforestation and forest
management, together with the recommendation submitted by the relevant
committee; such project proposals based on tropical timber as defined in
article 2, paragraph 1, may encompass tropical timber products other than
those listed in article 2, paragraph 1. This provision shall also apply,
where relevant, to the functions of the committees as set forth in
article 25.

3. On the basis of the criteria set out in paragraph 6 or paragraph 7 of
this article, the Council shall, by special vote, approve projects for
financing or sponsorship in accordance with article 20.

4. The Council shall, on a continuing basis, arrange for the
implementation of, and with a view to ensuring their effectiveness follow
up, approved projects.

5. Research and development projects should relate to at least one of the
following five areas:

    (a) Wood utilization, including the utilization of lesser-known and
lesser-used species;

    (b) Natural forest development; 

    (c) Reforestation development;

    (d) Harvesting, logging infrastructure, training of technical
personnel;

    (e) Institutional framework, national planning.

6. Projects on research and development approved by the Council shall be
consistent with each of the following criteria:

    (a) They should be related to the production and utilization of
industrial tropical timber;

    (b) They should yield benefits to the tropical timber economy as a
whole and be relevant to producing as well as consuming members;

    (c) They should be related to the maintenance and expansion of the
international tropical timber trade;

    (d) They should offer reasonable prospects for positive economic
returns in relation to costs; and

    (e) They shall make maximum use of existing research institutions
and, to the greatest extent possible, avoid duplication of efforts.

7. Projects in the fields of market intelligence further and increased
processing, and reforestation and forest management, should be consistent
with criterion (b) and, as far as possible, consistent with criteria (a),
(c), (d) and (e) as contained in paragraph 6 of this article.

8. The Council shall decide on the relative priorities of projects,
taking into account the interests and characteristics of each of the
producing regions. Initially, the Council shall give priority to research
and development project profiles as endorsed by the Sixth Preparatory
Meeting on Tropical Timber under the Integrated Programme for Commodities
and to such other projects as the Council may approve.

9. The Council may, by special vote, terminate its sponsorship of any
project.

                              Article 24

                     ESTABLISHMENT OF COMMITTEES

1. The following committees are hereby established as permanent
committees of the Organization: 

    (a) Committee on Economic Information and Market Intelligence;

    (b) Committee on Reforestation and Forest Management; and

    (c) Committee on Forest Industry.

2. The Council may, by special vote, establish such other committees and
subsidiary bodies as it deems appropriate and necessary.

3. The committees and subsidiary bodies referred to in paragraphs 1 and 2
of this article shall be responsible to, and work under the general
direction of, the Council. Meetings of the committees and subsidiary
bodies shall be convened by the Council.

4. Participation in each of the committees shall be open to all members.
The rules of procedure of the committees shall be decided by the Council.

                              Article 25

                     FUNCTIONS OF THE COMMITTEES

1. The Committee on Economic Information and Market Intelligence shall:

    (a) Keep under review the availability and quality of statistics and
other information required by the Organization;

    (b) Analyze the statistical data and specific indicators as
identified in annex C for the monitoring of international tropical timber
trade;

    (c) Keep under continuous review the international tropical timber
market, its current situation and short-term prospects on the basis of
the data mentioned in subparagraph (b) above and other relevant
information;

    (d) Make recommendations to the Council on the need for, and nature
of, appropriate studies on tropical timber, including long-term prospects
of the international tropical timber market, and monitor and review any
studies commissioned by the Council;

    (e) Carry out any other tasks related to the economic, technical and
statistical aspects of tropical timber assigned to it by the Council;

    (f) Assist in the provision of technical co-operation to producing
members to improve their relevant statistical services.

2. The Committee on Reforestation and Forest Management shall:

    (a) Keep under regular review the support and assistance being
provided at a national and international level for reforestation and
forest management for the production of industrial tropical timber;

    (b) Encourage the increase of technical assistance to national
programmes for reforestation and forest management;

    (c) Assess the requirements and identify all possible sources of
financing for reforestation and forest management;

    (d) Review regularly future needs of international trade in
industrial tropical timber and, on this basis, identify and consider
appropriate possible schemes and measures in the field of reforestation
and forest management;

    (e) Facilitate transfer of knowledge in the field of reforestation
and forest management with the assistance of competent organizations;

    (f) Co-ordinate and harmonize these activities for co-operation in
the field of reforestation and forest management with the relevant
activities pursued elsewhere, such as those under FAO, UNEP, the World
Bank, regional banks and other competent organizations.

3. The Committee on Forest Industry shall:

    (a) Promote co-operation between producing and consuming members as
partners in the development of processing activities in producing member
countries, inter alia, in the following areas:

      (i) Transfer of technology

     (ii) Training;

    (iii) Standardization of nomenclature of tropical timber

     (iv) Harmonization of specifications of processed products;

      (v) Encouragement of investment and joint ventures; and

     (vi) Marketing;

    (b) Promote exchange of information in order to facilitate structural
changes involved in increased and further processing in the interests of
both producing and consuming members;

    (c) Monitor ongoing activities in this field, and identify and
consider problems and possible solutions to them in co-operation with the
competent organizations;

    (d) Encourage the increase of technical assistance to national
programmes for the processing of tropical timber.

4. Research and development shall be a common function of the committees
established under article 24, paragraph 1.

5. In view of the close relationship between research and development,
reforestation and forest management, increased and further processing,
and market intelligence, each of the permanent committees, in addition to
carrying out the functions assigned to it above, shall, with regard to
project proposals referred to it, including those on research and
development in its area of competence:

    (a) Consider and technically appraise and evaluate project proposals;

    (b) In accordance with general guidelines established by the Council,
decide on and implement pre-project activities necessary for making
recommendations on project proposals to the Council;

    (c) Identify possible sources of finance for projects referred to in
article 20, paragraph 2;

    (d) Follow up the implementation of projects and provide for the
collection and dissemination of the results of projects as widely as
possible for the benefit of all members;

    (e) Make recommendations to the Council relating to projects;

    (f) Carry out any other tasks related to projects assigned to it by
the Council.

6. In carrying out these common functions, each committee shall take into
account the need to strengthen the training of personnel in producing
member countries; to consider and propose modalities for organizing or
strengthening the research and development activities and capacities of
members, particularly producing members; and to promote the transfer of
research know-how and techniques among members, particularly among
producing members.

                              Chapter VIII

            RELATIONSHIP WITH THE COMMON FUND FOR COMMODITIES

                              Article 26

            RELATIONSHIP WITH THE COMMON FUND FOR COMMODITIES

When the Common Fund becomes operational, the Organization shall take
full advantage of the facilities of the Second Account of the Common Fund
according to the principles set out in the Agreement establishing the
Common Fund for Commodities.

                              Chapter IX

                 STATISTICS, STUDIES AND INFORMATION

                              Article 27

                 STATISTICS, STUDIES AND INFORMATION

1. The Council shall establish close relationships with appropriate
intergovernmental, governmental and non-governmental organizations, in
order to help ensure the availability of recent and reliable data and
information on all factors concerning tropical timber. The Organization,
in co-operation with such organizations, shall compile, collate and, as
necessary, publish such statistical information on production, supply,
trade, stocks, consumption and market prices of tropical timber, and on
related areas, as is necessary for the operation of this Agreement.

2. Members shall, to the fullest extent possible not inconsistent with
their national legislation, furnish, within a reasonable time, statistics
and information on tropical timber requested by the Council.

3. The Council shall arrange to have any necessary studies undertaken of
the trends and of short- and long-term problems of the world tropical
timber market.

4. The Council shall ensure that information furnished by members shall
not be used in such a manner as to prejudice the confidentiality of the
operations of persons or companies producing, processing or marketing
tropical timber.

                              Article 28

                       ANNUAL REPORT AND REVIEW

1. The Council shall, within six months after the close of each calendar
year, publish an annual report on its activities and such other
information as it considers appropriate.

2. The Council shall annually review and assess the world tropical timber
situation and exchange views on the outlook for, and other issues closely
related to, the world tropical timber economy, including ecological and
environmental aspects.

3. The review shall be carried out in the light of:

    (a) Information supplied by members in relation to national
production, trade, supply, stocks, consumption and prices of tropical
timber;

    (b) Statistical data and specific indicators provided by members on
the areas listed in annex C; and

    (c) Such other relevant information as may be available to the
Council either directly or through the appropriate organizations in the
United Nations system and appropriate intergovernmental, governmental or
non-governmental organizations.

4. The results of the review shall be included in the reports of the
Council's deliberations.

                              Chapter X

                            MISCELLANEOUS

                              Article 29

                       COMPLAINTS AND DISPUTES

Any complaint that a member has failed to fulfil its obligations under
this Agreement and any dispute concerning the interpretation or
application of this Agreement shall be referred to the Council for
decision. Decisions of the Council on these matters shall be final and
binding.

                              Article 30

                     GENERAL OBLIGATIONS OF MEMBERS

1. Members shall for the duration of this Agreement use their best
endeavours and co-operate to promote the attainment of its objectives and
to avoid any action contrary thereto.

2. Members undertake to accept as binding decisions of the Council under
the provisions of this Agreement and shall seek to refrain from
implementing measures which would have the effect of limiting or running
counter to them.

                              Article 31

                       RELIEF FROM OBLIGATIONS

1. Where it is necessary on account of exceptional circumstances or
emergency or force majeure not expressly provided for in this Agreement,
the Council may, by special vote, relieve a member of an obligation under
this Agreement if it is satisfied by an explanation from that member
regarding the reasons why the obligation cannot be met.

2. The Council in granting relief to a member under paragraph i of this
article, shall state explicitly the terms and conditions on which, and
the period for which, the member is relieved of such obligation, and the
reasons for which the relief is granted.

                              Article 32

        DIFFERENTIAL AND REMEDIAL MEASURES AND SPECIAL MEASURES

1. Developing importing members whose interests are adversely affected by
measures taken under this Agreement may apply to the Council for
appropriate differential and remedial measures. The Council shall
consider taking appropriate measures in accordance with section III
paragraphs 3 and 4, of resolution 93 (IV) of the United Nations
Conference on Trade and Development.

2. Members in the category of least developed countries as defined by the
United Nations may apply to the Council for special measures in
accordance with section III, paragraph 4, of resolution 93 (IV) and with
paragraph 82 of the Substantial New Programme of Action for the 1980s for
the Least Developed Countries.

                              Chapter XI

                           FINAL PROVISIONS

                              Article 33

                              DEPOSITARY

The Secretary-General of the United Nations is hereby designated as the
depositary of this Agreement.

                              Article 34

           SIGNATURE, RATIFICATION, ACCEPTANCE AND APPROVAL

1. This Agreement shall be open for signature at United Nations
Headquarters from 2 January 1984 until one month after the date of its
entry into force by Governments invited to the United Nations Conference
on Tropical Timber, 1983.

2. Any Government referred to in paragraph 1 of this article may:

    (a) At the time of signing this Agreement, declare that by such
signature it expresses its consent to be bound by this Agreement
(definitive signature); or

    (b) After signing this Agreement, ratify, accept or approve it by the
deposit of an instrument to that effect with the depositary.

                              Article 35

                              ACCESSION

1. This Agreement shall be open for accession by the Governments of all
States upon conditions established by the Council, which shall include a
time-limit for the deposit of instruments of accession. The Council may,
however, grant extensions of time to Governments which are unable to
accede by the time-limit set in the conditions of accession.

2. Accession shall be effected by the deposit of an instrument of
accession with the depositary.

                              Article 36

               NOTIFICATION OF PROVISIONAL APPLICATION

A signatory Government which intends to ratify, accept or approve this
Agreement, or a Government for which the Council has established
conditions for accession but which has not yet been able to deposit its
instrument, may, at any time, notify the depositary that it will apply
this Agreement provisionally either when it enters into force in
accordance with article 37, or, if it is already in force, at a specified
date.

                              Article 37

                           ENTRY INTO FORCE

1. This Agreement shall enter into force definitively on 1 October 1984
or on any date thereafter, if 12 Governments of producing countries
holding at least 55 per cent of the total votes as set out in annex A to
this Agreement, and 16 Governments of consuming countries holding at
least 70 per cent of the total votes as set out in annex B to this
Agreement have signed this Agreement definitively or have ratified,
accepted or approved it or acceded thereto pursuant to article 34,
paragraph 2, or article 35.

2. If this Agreement has not entered into force definitively on 1 October
1984, it shall enter into force provisionally on that date or on any date
within six months thereafter, if 10 Governments of producing countries
holding at least 50 per cent of the total votes as set out in annex A to
this Agreement and 14 Governments of consuming countries holding at least
65 per cent of the total votes as set out in annex B to this Agreement,
have signed this Agreement definitively or have ratified, accepted or
approved it pursuant to article 34, paragraph 2, or have notified the
depositary under article 36 that they will apply this Agreement
provisionally.

3. If the requirements for entry into force under paragraph 1 or
paragraph 2 of this article have not been met on 1 April 1985, the
Secretary-General of the United Nations shall invite those Governments
which have signed this Agreement definitively or have ratified, accepted
or approved it pursuant to article 34, paragraph 2, or have notified the
depositary that they will apply this Agreement provisionally, to meet at
the earliest time practicable to decide whether to put this Agreement
into force provisionally or definitively among themselves in whole or in
part. Governments which decide to put this Agreement into force
provisionally among themselves may meet from time to time to review the
situation and decide whether this Agreement shall enter into force
definitively among themselves.

4. For any Government which has not notified the depositary under article
36 that it will apply this Agreement provisionally and which deposits its
instrument of ratification, acceptance, approval or accession after the
entry into force of this Agreement, this Agreement shall enter into force
on the date of such deposit.

5. The Secretary-General of the United Nations shall convene the first
session of the Council as soon as possible after the entry into force of
this Agreement.

                              Article 38

                              AMENDMENTS

1. The Council may, by special vote, recommend an amendment of this
Agreement to the members.

2. The Council shall fix a date by which members shall notify the
depositary of their acceptance of the amendment.

3. An amendment shall enter into force 90 days after the depositary has
received notifications of acceptance from members constituting at least
two thirds of the producing members and accounting for at least 85 per
cent of the votes of the producing members, and from members constituting
at least two thirds of the consuming members and accounting for at least
85 per cent of the votes of the consuming members.

4. After the depositary informs the Council that the requirements for
entry into force of the amendment have been met, and notwithstanding the
provisions of paragraph 2 of this article relating to the date fixed by
the Council, a member may still notify the depositary of its acceptance
of the amendment, provided that such notification is made before the
entry into force of the amendment.

5. Any member which has not notified its acceptance of an amendment by
the date on which such amendment enters into force shall cease to be a
party to this Agreement as from that date, unless such member has
satisfied the Council that its acceptance could not be obtained in time
owing to difficulties in completing its constitutional or institutional
procedures, and the Council decides to extend for that member the period
for acceptance of the amendment. Such member shall not be bound by the
amendment before it has notified its acceptance thereof.

6. If the requirements for the entry into force of the amendment have not
been met by the date fixed by the Council in accordance with paragraph 2
of this article, the amendment shall be considered withdrawn.

                              Article 39

                              WITHDRAWAL

1. A member may withdraw from this Agreement at any time after the entry
into force of this Agreement by giving written notice of withdrawal to
the depositary. That member shall simultaneously inform the Council of
the action it has taken.

2. Withdrawal shall become effective 90 days after the notice is received
by the depositary.

                              Article 40

                              EXCLUSION

If the Council decides that any member is in breach of its obligations
under this Agreement and decides further that such breach significantly
impairs the operation of this Agreement, it may, by special vote, exclude
that member from this Agreement. The Council shall immediately so notify
the depositary. Six months after the date of the Council's decision that
member shall cease to be a party to this Agreement.

                              Article 41

               SETTLEMENT OF ACCOUNTS WITH WITHDRAWING 
     OR EXCLUDED MEMBERS OR MEMBERS UNABLE TO ACCEPT AN AMENDMENT

1. The Council shall determine any settlement of accounts with a member
which ceases to be a party to this Agreement owing to:

    (a) Non-acceptance of an amendment to this Agreement under article
38;

    (b) Withdrawal from this Agreement under article 39; or

    (c) Exclusion from this Agreement under article 40.

2. The Council shall retain any contribution paid to the Administrative
Account by a member which ceases to be a party to this Agreement.

3. A member which has ceased to be a party to this Agreement shall not be
entitled to any share of the proceeds of liquidation or the other assets
of the Organization. Nor shall such member be liable for payment of any
part of the deficit, if any, of the Organization upon termination of this
Agreement.

                              Article 42

                 DURATION, EXTENSION AND TERMINATION

1. This Agreement shall remain in force for a period of five years after
its entry into force unless the Council, by special vote, decides to
extend, renegotiate or terminate it in accordance with provisions of this
article.

2. The Council may, by special vote, decide to extend this Agreement for
not more than two periods of two years each.

3. If, before the expiry of the five-year period referred to in paragraph
1 of this article, or before the expiry of an extension period referred
to in paragraph 2 of this article, as the case may be, a new agreement to
replace this Agreement has been negotiated but has not yet entered into
force either definitively or provisionally, the Council may, by special
vote, extend this Agreement until the provisional or definitive entry
into force of the new agreement.

4. If a new agreement is negotiated and enters into force during any
period of extension of this Agreement under paragraph 2 or paragraph 3 of
this article, this Agreement, as extended, shall terminate upon the entry
into force of the new agreement.

5. The Council may at any time, by special vote, decide to terminate this
Agreement with effect from such date as it may determine.

6. Notwithstanding the termination of this Agreement, the Council shall
continue in being for a period not exceeding 18 months to carry out the
liquidation of the Organization, including the settlement of accounts,
and, subject to relevant decisions to be taken by special vote, shall
have during that period such powers and functions as may be necessary for
these purposes.

7. The Council shall notify the depositary of any decision taken under
this article.

                              Article 43

                             RESERVATIONS

Reservations may not be made with respect to any of the provisions of
this Agreement.

In witness whereof the undersigned, being duly authorized thereto, have
affixed their signatures under this Agreement on the dates indicated.

Done at Geneva on the eighteenth day of November, one thousand nine
hundred and eighty-three, the text of this Agreement in the Arabic
English, French, Russian and Spanish languages being equally authentic.
The authentic Chinese text of this Agreement shall be established by the
depositary and submitted for adoption to all signatories and States and
intergovernmental organizations which have acceded to this Agreement.



                                 Annex A

List of producing countries with tropical forest resources and/or net
exporters of tropical timber in volume terms, and allocation of votes for
the purposes of article 37

Bolivia                            21
Brazil                            130
Burma                              31
Central African Republic           20
Colombia                           23
Congo                              20
Costa Rica                          9
Dominican Republic                  9
Ecuador                            14
El Salvador                         8
Gabon                              21
Ghana                              20
Guatemala                          10
Haiti                               8
Honduras                            9
India                              32
Indonesia                         139
Ivory Coast                        21
Liberia                            20
Madagascar                         20
Malaysia                          126
Mexico                             13
Nigeria                            20
Panama                              9
Papua New Guinea                   24
Peru                               25
Philippines                        43
Sudan                              20
Surinam                            14
Thailand                           19
Trinidad and Tobago                 8
United Republic of Cameroon        20
United Republic of Tanzania        20
Venezuela                          15
Viet Nam                           18
Zaire                              21
                                _____
                      TOTAL     1,000

                                *   *   *   *

                                    Annex B

List of consuming countries and allocation of votes for the purposes of
article 37

Argentina                          14
Australia                          20
Austria                            12
Bulgaria                           10
Canada                             16
Chile                              10
Egypt                              11
European Economic Community      (277)
  Belgium/Luxembourg               21
  Denmark                          13
  France                           56
  Germany, Federal Republic of     44
  Greece                           14
  Ireland                          12
  Italy                            41
  Netherlands                      35
  United Kingdom of Great
    Britain and Northern Ireland   41
Finland                            10
Iraq                               10
Israel                             12
Japan                             330
Jordan                             10
Malta                              10
New Zealand                        10
Norway                             11
Republic of Korea                  56
Romania                            10
Spain                              24
Sweden                             11
Switzerland                        11
Turkey                             10
Union of Soviet Socialist
  Republics                        14
United States of America           79
Yugoslavia                         12
                                _____
                      TOTAL     1,000


                                *   *   *   *

                                    Annex C

Statistical Data and Specific Indicators Needed as Identified for the
Monitoring of International Tropical Timber Trade*

------------------------------------------------------------------------------
                           From producing members     From consuming members
------------------------------------------------------------------------------
A. Basic monthly data      Export volumes (values):   Import volumes (values):
   for regular monitoring  by products, species,      by products, species,
   of major tropical       destinations and other     origin and other avail-
   timber trade flows      available relevant         able relevant details
                           details
                                                      Average c.i.f. prices:
                           Average f.o.b. prices:     for specific products
                           for specific products and  and species represent-
                           species representative of  ative of major trade
                           major trade flows          flows

B. Specific supple-        Periodic evaluation of     Periodic evaluation of
   mentary data and        stocks at point of em-     stocks at point of de-
   indicators from         barkation and, if pos-     barkation and, if pos-
   which short-term        sible, at intermediate     sible, at intermediate
   supply-demand for       stages.                    stages.
   tropical wood can       Forest industry product-   Share of tropical timber
   be derived              ion (capacity) and indus-  in total trade.
                           trial wood input/output.   Exports and re-exports
                           Removals of industrial     of wood products.
                           timber from forests.       Building activity, 
                           Freight rates.             housing starts, mortgage
                           Export quotas - trade      rates.
                           incentives                 Furniture production
                           Climatic obstacles - 
                           natural catastrophes

C. Other relevant          Changes in tariffs and     End-use surveys in
   specific information    non-tariff obstacles       major sectors using
                                                      tropical timber.
                                                      Changes in veneer
                                                      surface fashion.
                                                      Changes in tariffs and
                                                      non-tariff obstacles.
                                                      Trends in substitution
                                                      among wood and with
                                                      other wood products.

D. General economic        Publicly available and relevant national and
   indicators and in-      international economic and financial indicators,
   formation directly      e.g., gross national product, exchange rates,
   or indirectly           interest rates, inflation rates, terms of trade.
   affecting the inter-    National and international policies and measures
   national (tropical)     affecting international tropical timber trade.
   timber trade
_____________________________________________________________________________
* Annexed pursuant to consensus reached in the Executive Committee of the
Conference on 29 March 1983.