to reductions in duties and charges and other restrictions, received or granted under the liberalization programme, which shall remain in force for a period of five years from the date on which the denunciation becomes formally effective. The period specified in the preceding paragraph may be shortened if there is sufficient justification, with the consent of the Conference and at the request of the Contracting Party concerned. Article 65 The present Treaty shall be called the Montevideo Treaty. IN WITNESS WHEREOF the undersigned Plenipotentiaries, having deposited their full powers, found in good and due form, have signed the present Treaty on behalf of their respective Governments. DONE in the City of Montevideo, on the eighteenth day of the month of February in the year One Thousand Nine Hundred and Sixty, in one original in the Spanish and one in the Portuguese language, both texts being equally authentic. The Government of the Eastern Republic of Uruguay shall be the depositary of the present Treaty and shall transmit duly certified copies thereof to the Governments of the other signatory and acceding States. For the Government of the Argentine Republic: Diógenes Taboada For the Government of the United States of Brazil: For the Government of the Republic of Chile: For the Government of the Republic of the United Mexican States: Manuel Tello For the Government of the Republic of Paraguay: Raúl Sapena Pastor Pedro Ramón Chamorro For the Government of Peru: Hernán Bellido Gonzalo L. de Aramburu For the Government of the Eastern Republic of Uruguay: Protocol No. 1 Horacio Martínez Montero Mateo Magariños de Mello ON NORMS AND PROCEDURES FOR NEGOTIATIONS [Not reprinted here; see pp. 38-39 of the source text.] Protocol No. 2 ON THE ESTABLISHMENT OF A PROVISIONAL COMMITTEE On the occasion of the signing of the Treaty establishing a Free-Trade Area and instituting the Latin American Free-Trade Association (Montevideo Treaty), the signatories, thereunto duly authorized by their Governments, taking into consideration the need to adopt and co-ordinate measures to facilitate the entry into force of the Treaty, hereby agree as follows: 1. A Provisional Committee shall be set up, composed of one representative of each signatory State. Each representative shall have an alternate. 03 At its first meeting the Provisional Committee shall elect from among its members one Chairman and two Vice-Chairmen. 2. The terms of reference of the Provisional Committee shall be as follows: (a) To draw up its rules of procedure; (b) To prepare, within sixty days from the date of its inauguration, its work programme, and to establish its budget of expenditure and the contributions to be made by each country; (c) To adopt the measures and prepare the documents necessary for the presentation of the Treaty to the Contracting Parties of the General Agreement on Tariffs and Trade (GATT); (d) To convene and prepare for the first Conference of Contracting Parties; (e) To assemble and prepare the data and statistics required for the first series of negotiations connected with the implementation of the liberalization programme provided for in the Treaty; (f) To carry out or promote studies and research, and to adopt whatsoever measures may be necessary in the common interest during its period of office; and (g) To prepare a preliminary draft agreement on the privileges and immunities referred to in article 47 of the Treaty. 3. In technical matters, the Provisional Committee shall be assisted in an advisory capacity by the United Nations Economic Commission for Latin America (ECLA) and the Inter-American Economic and Social Council (IA-ECOSOC), of the Organization of American States, in accordance with the relevant Protocol."* 4. The Provisional Committee shall appoint an Administrative Secretary and other requisite staff. 5. The Provisional Committee shall be inaugurated on 1 April 1960, and its quorum shall be constituted by not less than four members. Up to that date, the Officers of the Inter-Governmental Conference for the Establishment of a FreeTrade Area among Latin American Countries shall continue to discharge their functions, for the sole purpose of establishing the Provisional Committee. 6. The Provisional Committee shall remain in office until the Standing Executive Committee, provided for in article 33 of the Treaty, has been set up. 7. The Provisional Committee shall have its headquarters in the City of Montevideo. 65 8. The Officers of the above-mentioned Conference are recommended to request the Government of the Eastern Republic of Uruguay to advance the necessary sums to cover the payment of staff salaries and the installation and operational expenses of the Provisional Committee during the first ninety days. These sums shall be subsequently reimbursed by the States signatories of the present Treaty. 9. The Provisional Committee shall approach the signatory Governments with a view to obtaining for the members of its constituent delegations, as well as for its international staff and advisers, such immunities and privileges as may be needful for the performance of their duties. IN WITNESS WHEREOF the respective representatives have signed the present Protocol. Protocol No. 3 ON THE COLLABORATION OF THE UNITED NATIONS ECONOMIC COMMISSION FOR LATIN AMERICA (ECLA) AND OF THE INTER-AMERICAN ECONOMIC AND SOCIAL COUNCIL (IA-ECOSOC) OF THE ORGANIZATION OF AMERICAN STATES [Not reprinted here; see p. 40 of the source text.] Protocol No. 4 ON COMMITMENTS TO PURCHASE OR SELL PETROLEUM AND PETROLEUM DERIVATIVES [Not reprinted here; see pp. 40-41 of the source text.] See U.N. docs. E/3486, p. 3, and E/3581/Rev. 1, p. 3. I.e., Protocol No. 3. I.e., until Aug. 2, 1961. Protocol No. 5 ON SPECIAL TREATMENT IN FAVOUR OF BOLIVIA AND PARAGUAY On the occasion of the signing of the Treaty establishing a Free-Trade Area and instituting the Latin American Free-Trade Association (Montevideo Treaty), the signatories, thereunto duly authorized by their Governments, hereby agree: To declare that Bolivia and Paraguay are at present in a position to invoke in their favour the provisions in the Treaty concerning special treatment for countries at a relatively less advanced stage of economic development within the Free-Trade Area. IN WITNESS WHEREOF the respective representatives have signed the present Protocol. Resolution I MEETINGS OF GOVERNMENTAL REPRESENTATIVES OF CENTRAL BANKS [Not reprinted here; see p. 41 of the source text.] Resolution II MORATORIUM GRANTED TO BOLIVIA FOR SIGNATURE OF THE TREATY The Inter-Governmental Conference for the Establishment of a Free-Trade Area among Latin American Countries, Considering the generous spirit of co-operation displayed by Bolivia in its participation in the negotiations for the conclusion of the Treaty establishing a Free-Trade Area and instituting the Latin American Free Trade Association (Treaty of Montevideo); Mindful of the motives adduced by the delegation of Bolivia to explain why, for reasons of force majeure, it is unable to sign the above-mentioned Treaty on the present occasion, Decides to grant the Government of Bolivia a moratorium of four (4) months during which it will be free to accede to the aforesaid Treaty as a signatory State.7 Montevideo, 18 February 1960 140. ESTABLISHMENT OF THE SOCIAL PROGRESS TRUST FUND UNDER THE ADMINISTRATION OF THE INTERAMERICAN DEVELOPMENT BANK: Agreement Signed at Washington by the President of the United States (Kennedy) and the President of the Inter-American Development Bank (Herrera), June 19, 1961 (Excerpts) 68 Agreement dated this nineteenth day of June, 1961, between the Government of the United States of America (United States) and the Inter-American Development Bank (hereinafter sometimes called the Bank), to entrust to the Bank the administration of the Social Progress Trust Fund, constituted from part of the Special Inter-American Fund for Social Progress. See ch. VIII of the present treaty and U.N. doc. E/3486, pp. 3-4.* 67 As of Jan. 1964, Bolivia had not acceded to the treaty. 65 TIAS 4763; 12 UST 632. The agreement entered into force on the date of signature. PREAMBLE 69 WHEREAS the President and the Congress of the United States have endorsed the establishment of a cooperative program for the social progress of the American Republics, complementing measures directed toward accelerated economic growth, and based on the determination of the respective countries to contribute their own efforts and resources in a manner conducive to achieving the purposes of the program; WHEREAS the representatives of the American Republics, considering it advisable to adopt measures for social improvement and economic development within the framework of Operation Pan America, recognized in the Act of Bogota of September 12, 1960,70 that the preservation and strengthening of free and democratic institutions in the American Republics require the acceleration of social and economic progress in Latin America adequate to meet the legitimate aspirations of the peoples of the Americas for a better life and to provide them the fullest opportunity to improve their status and recognize further that the magnitude of the problems involved will require maximum self-help efforts on the part of the American Republics and, in many cases, the improvement of existing institutions and practices, particularly in the fields of ownership and use of land, education and training, health and housing, and taxation and other aspects of the mobilization of domestic resources: WHEREAS in the Act of Bogota the representatives of the American Republics welcomed the decision of the Government of the United States to establish a Special Inter-American Fund for Social Progress with the Inter-American Development Bank to become the primary mechanism for the administration of such a fund; WHEREAS the United States has now established the aforesaid Fund to assist in carrying out its declared aims for social improvement in the Latin American Republics and thereby contribute towards fulfilling the purposes of the Act of Bogota; AND WHEREAS the Inter-American Development Bank has determined that the administration of a trust fund for these purposes by the Bank would be consistent with the provisions of the Agreement Establishing the Bank 1 and would strengthen the efforts of the Bank to foster greater social progress and balanced economic growth. NOW THEREFORE, the Parties hereto agree as follows: ARTICLE I Establishment and Purposes of the Social Progress Trust Fund Section 1.01. There is hereby established the Social Progress Trust Fund (hereinafter called the Fund), constituted by monies transferred to the Fund from time to time by the United States and by any other accruals thereto, pursuant to Article III of this Agreement, to be held "See ante, docs. 133 and 138. 70 Text in American Foreign Policy: Current Documents, 1960, pp. 293–299. "Text ibid., 1959, pp. 440-469. in trust and administered by the Bank in accordance with the terms of this Agreement. Section 1.02. The Bank is hereby designated Administrator of the Fund. The term Administrator will hereinafter be used to refer to the Bank acting in that capacity. Section 1.03. The purpose of the Fund shall be to provide capital resources and technical assistance on flexible terms and conditions, including repayment in local currency and the relending of repaid funds and interest, in accordance with appropriate and selective criteria in the light of the resources available, to support the efforts of the Latin American countries that are prepared to initiate or expand effective institutional improvements and to adopt measures to employ efficiently their own resources with a view to achieving greater social progress and more balanced economic growth. Section 1.04. Consistent with the foregoing purpose, the Administrator shall utilize the resources of the Fund to make loans for projects or programs designed to achieve improved conditions in the countries concerned in the fields of: (a) land settlement and improved land use, including access and feeder roads, assistance to agricultural credit institutions, assistance to supervised credit and agricultural extension, and development of storage and marketing facilities, provided that the resources of the Fund shall not be used for the purchase of agricultural land; (b) housing for low income groups, through assistance to selfhelp housing and to institutions providing long-term housing finance and engaged in mobilizing domestic resources for this purpose; (c) community water supply and sanitation facilities; (d) such supplementary financing of facilities for advanced education and training related to economic and social development as may be agreed upon from time to time between the United States and the Administrator. Section 1.05. In addition, the Administrator shall utilize the resources of the Fund to provide technical assistance related to projects in the fields set forth in Section 1.04, and technical assistance related to the mobilizing of domestic financial resources and the strengthening of financial institutions. Section 1.06. The Fund and its assets and accounts shall be kept separate and apart from all other assets and accounts of the Bank. ARTICLE II Criteria for the Administration of the Fund Section 2.01. In considering applications for loans and for technical assistance, the Administrator shall be guided by the following criteria: (a) Consideration shall continuously be given to the institutional improvements which a country is initiating or expanding consistent with Article I, Section 1.03, of this Agreement. Accordingly, assistance shall be made available to those projects or programs which are related to effective self-help measures in countries which demon |