[Senate Executive Report 105-16]
[From the U.S. Government Publishing Office]



105th Congress                                               Exec. Rpt.
                                 SENATE

 2d Session                                                      105-16
_______________________________________________________________________


 
                  INTERNATIONAL GRAINS AGREEMENT, 1995

                                _______
                                

                 June 19, 1998.--Ordered to be printed

_______________________________________________________________________


          Mr. Helms, from the Committee on Foreign Relations,

                        submitted the following

                              R E P O R T

                    [To accompany Treaty Doc. 105-4]

    The Committee on Foreign Relations, to which was referred 
The Grains Trade Convention and Food Aid Convention 
Constituting the International Grains Agreement, 1995, signed 
by the United States on June 26, 1995, having considered the 
same, reports favorably thereon with one declaration and one 
proviso, and recommends that the Senate give its advice and 
consent to the ratification thereof as set forth in this report 
and the accompanying resolution of ratification.

                               I. Purpose

    The Grains Trade Convention, 1995, is intended to foster 
international cooperation in trade in grains, to promote trade 
expansion and seek the elimination of trade barriers involving 
these commodities, to promote market stability, and to provide 
an international forum for exchanging information regarding 
grains. The Convention does not contain economic provisions and 
thus does not regulate levels of grain trade between countries 
or price ranges for grain sales.
    The Food Aid Convention, 1995, obligates importing and 
exporting developed countries to provide specified annual 
levels of edible grain to developing countries either 
bilaterally or through a multilateral entity such as the World 
Food Program.

                             II. Background

    The International Grains Agreement, 1995 (Treaty Doc. 105-
4) consists of two separate legal instruments: the Grains Trade 
Convention, 1995, and the Food Aid Convention, 1995. The Grains 
Trade Convention, 1995, replaces the Wheat Trade Convention, 
1986, as extended in 1991. The Food Aid Convention, 1995, 
replaces the Food Aid Convention, 1986, as extended in 1992. 
For- 
merly two parts of the most recent Wheat Trade Convention, 
these two instruments were separated in the International 
Grains Agreement pending before the Senate.
    The Grains Trade Convention is administered by the 
International Grains Council (IGC), the successor to the 
International Wheat Council, originally established in the 
International Wheat Agreement, 1949. The 1949 Agreement, which 
provided for annual quotas for exporting and importing member 
countries within an agreed price range, was the result of an 
intergovernmental effort begun in 1933, when an international 
agreement for regulating wheat trade was concluded by the 
International Conference of Wheat Exporting and Importing 
Countries. The 1995 Convention expands the coverage of earlier 
agreements to include not only wheat and wheat products but 
also barley, maize, millet, oats, rye, sorghum, triticale (and 
their products), and other grains as the Council may later 
decide.
    The Conventions were negotiated between December 1993 and 
December 1994 and were adopted at meetings of the International 
Wheat Council and the Food Aid Committee, held in London on 
December 7, 1994, and December 5, 1994, respectively. The 
Conventions were signed for the United States on June 26, 1995. 
They entered into force July 1, 1995. Their effective dates 
have been extended by the Parties through June 30, 1999.

                              III. Summary

                               a. general

Grains Trade Convention, 1995

    Part I, General (Arts. 1-8). Part I of the Convention sets 
forth Convention objectives (Art. 1), contains definitions 
(Art. 2), and explains what constitutes a ``commercial 
purchase'' and a ``special transaction'' (see below) for 
purposes of the Convention (Art. 5). It establishes the 
information dissemination functions of the Convention (Art. 3) 
and provides for Member consultations in the event of 
significant changes in the international grains market (Art. 
4). It requires Members to provide regular reports to the 
Council on their grains trade and delineates the trade-related 
information that must be provided to that body (Art. 7). Part I 
also contains guidelines for concessional transactions that aim 
at limiting incursions into commercial markets (Art. 6). 
Finally, the Convention provides for dispute resolution between 
Members, empowering the Council to resolve disputes that are 
not resolved through negotiation (Art. 8).
    Part II, Administration (Arts. 9-22). Part II of the 
Convention establishes the International Grains Council (IGC), 
the Convention's governing body consisting of all Convention 
Members (Art. 9), and enumerates the Council's powers and 
functions (Art. 10). The Council sits in London and must meet 
at least once during each half of each fiscal year (Art. 13). 
Part II also requires the Council to establish an Executive 
Committee, which is responsible to and works under the guidance 
of the Council (Art. 15(1), (2)). The Executive Committee 
consists of a maximum 6 exporting members and 8 importing 
members, elected annually by their respective group, each group 
having the same number of total votes (Art. 15(1), (3)). The 
IGC is administered by a Secretariat with an Executive Director 
(Art. 17). Part II also requires the IGC to establish a Market 
Conditions Committee, consisting of all Convention Members, 
which is charged with continuously monitoring and reporting on 
``all matters affecting the world grain economy'' with the 
objective of improving information services to Members (Art. 
16; see also Art. 3(2)).
    Part II creates a weighted voting procedure for determining 
if the Convention should enter into force and for assessing 
financial contributions, based on country allocations set forth 
in the Annex A of the Convention (Art. 11). Votes for all other 
purposes are to be determined under Article 12 (Art. 11(6)). 
That article requires the Council to determine whether 
countries are importing or exporting Members, having taken 
account ``of the grain trading patterns of those members and of 
their own views'' (Art. 12(1)). Once this determination is 
made, the countries in each group must distribute their votes 
(a total of 1000 being allowed for each group, with Members of 
the group deciding the allocation of votes within the group 
based on the votes allocated to Members in the Convention 
Annex) (Art. 12(2)). The Council must review the list of 
exporting and importing members ``in light of the changing 
patterns of their grains trade'' three years after the 
Convention enters into force (Art. 12(3)), may vote to move a 
country from one list to another at its request (Art. 12(4)), 
and must review the distribution of votes whenever the lists 
change (Art. 12(6)). Unless otherwise stated, decisions are by 
majority of votes cast by importing Members and a majority of 
votes cast by exporting Members, separately counted (Art. 14).
    Part II sets forth Members' general financial obligations, 
provides for approval of the Convention's annual budget and for 
the annual financial assessment of Members, and sets forth 
consequences for non-payment of contributions (Art. 21).
    Part II also provides for interactions and cooperation 
between the Council and non-member governments and 
intergovernmental organizations, allowing the Council to invite 
any non-member state or intergovernmental organization to 
attend any Council meeting as an observer (Art. 18) and to make 
whatever arrangements it deems appropriate for consultation 
with the United Nations and its agencies, especially, the 
United Nations Conference for Trade and Development, the Food 
and Agriculture Organization, the Common Fund for Commodities, 
and the World Food Program (Art. 19).
    Part II also allows (but does not require) the Council, 
``at the appropriate time,'' to explore the possibility of 
negotiating a grains agreement with economic provisions and 
report to Members on the matter; if the Council views an 
agreement to be desirable, it may call on the United Nations 
Conference on Trade and Development to convene a negotiating 
conference (Art. 22).
    Part III, Final Provisions (Arts. 23-34). The Convention 
was open for signature until June 30, 1995, by countries listed 
in the Convention Annex (Art. 24). The Convention is subject to 
ratification or approval by each signatory Government ``in 
accordance with its respective constitutional procedures'' 
(Art. 25(1)), with instruments of ratification to be deposited 
by signatories no later than June 30, 1995, unless the Council 
has extended the date for any signatory unable to do so (Art. 
25(2)). Any Government listed in the Convention Annex was able 
to accede to the Convention until June 30, 1995; the Council is 
empowered, however, to grant one or more extensions of the date 
to any Government that had not deposited its instruments of 
ratification at that time (Art. 27(1)). The Convention states 
that it is open to ratification after June 30, 1995, by all 
countries upon conditions that the Council considers to be 
appropriate (Art. 27(2)). The Convention entered into force on 
July 1, 1995.
    The Convention allows Members to withdraw from the 
Convention at the end of a fiscal year upon at least 90 days' 
notice (Art. 29), authorizes the Council, by special vote, to 
exclude a Member that it finds is in breach of its obligations, 
where it finds that the breach ``significantly impairs'' the 
Convention's operation (Art. 30), and provides for the 
settlement of accounts by Members that have withdrawn or have 
been excluded (Art. 31). Requirements and procedures for 
amending the Convention are also set forth (Art. 32).
    The Convention will remain in force until June 30, 1998, 
unless it is extended or terminated by the Council, or replaced 
before then by a new agreement or convention with economic 
provisions negotiated under Article 22 (Art. 33(1)). The 
Council may extend the Convention, by special vote, for 
successive periods of not more than two years (Art. 33(2)).
    Annex. An Annex to the Convention contains two lists of 
Member countries and specifies the numbers of votes allocated 
to each. This allocation is used for determining whether the 
Convention should enter into force, and for assessing financial 
contributions (see Art. 11(1)-(2)).

Food Aid Convention, 1995

    Part I, Objective and Definitions (Arts. I-II). Part I of 
the Convention sets forth the Convention's objective and 
contains definitions of terms used in the Convention. As stated 
in Article I, the objective of the agreement is ``to secure, 
through a joint effort by the international community, the 
achievement of the World Food Conference target of at least 10 
million tonnes of food aid annually to developing countries in 
the form of grain suitable for human consumption, and as 
determined by the provisions of this Convention.'' The 
Convention defines a ``developing county'' as ``any country or 
territory which is recognized by the Development Assistance 
Committee of the OECD as a developing country or territory'' 
unless the Food Aid Committee decides otherwise (Art. 
II(1)(d)).
    Part II, Main Provisions (Arts. III-XV). Part II of the 
Convention sets forth the basic obligation of Members to 
contribute grains to developing country as food aid (or the 
cash equivalent thereof) in minimum annual amounts listed for 
each named country (Art. III). Donor countries are Argentina, 
Australia, Canada, the European Community and its member 
states, Japan, Norway, Switzerland, and the United States (Art. 
III(4)). While grain is to be provided as gifts to the maximum 
extent possible, the Convention provides that donors may also 
supply grain by way of gifts or grants of cash to purchase 
grain for the recipient, sales for recipient country currency 
that is not transferable or convertible or for goods and 
services for use by donor members, or sales on credit at 
concessional rates with extended repayment requirements terms 
(Art. IV). The Convention allows donors to channel their 
contributions to a specific country or countries, or make their 
contributions bilaterally or through intergovernmental 
organizations and/or nongovernmental organizations (Art. V). 
The Convention requires that contributions be evaluated in 
terms of their wheat equivalent (Art. VI).
    Members agree to undertake their aid transactions in a 
manner that does not interfere with normal production patterns 
and trade flows; to avoid tying food aid to commercial exports 
to recipient countries; to ensure that aid is provided 
consistently with the Food and Agriculture Organization (FAO) 
principles on surplus disposal; and generally to act in 
accordance with food aid guidelines approved by the United 
Nations World Food Program (Art. VII).
    The Convention establishes a Food Aid Committee to 
administer the Convention; the Committee, which consists of all 
Convention Members, meets at least twice a year in conjunction 
with the statutory sessions of the International Grains Council 
(IGC), and reaches its decisions by consensus (Arts. IX, XII). 
Non-members and representatives from other international 
organizations may attend Committee meetings as observers (Art. 
XIII). The Committee may call on the IGC Secretariat for 
administrative duties and the processing and distribution of 
documentation and reports (Art. XIV). Disputes over Convention 
interpretation and applications, or defaults on obligations, 
are overseen by the Committee, which is empowered to take 
``appropriate action'' (Art. XV).
    Part III, Final Provisions (Arts. XVI-XXVI). Under Article 
XVII, the Convention was open for signature until June 30, 
1995, by the Governments of the countries named earlier as 
donor nations. The Convention is subject to ratification or 
approval by each signatory country ``in accordance with its 
respective constitutional procedures''; signatories' 
instruments of ratification were to be deposited by June 30, 
1995, except that the Food Aid Committee was (and is) empowered 
to grant one or more extensions to signatories that had not 
deposited by that time (Art. XVIII). Any listed country that 
had not signed the Convention was able to accede until June 30, 
1995, the Council being able to extend the date for depositing 
instruments of accession for a Government that had not done so 
by that date (Art. XX(1)). Once entered into force, the 
Convention is open for accession by other Governments upon such 
conditions as the Council considers appropriate (including that 
Government's minimum contribution) (Art. XX(2); see also Art. 
III(5)).
    The Convention entered into force on July 1, 1995 (Art. 
XXI). The Convention is to remain in force until June 30, 1998, 
unless extended by the Parties (Art. XXII(1)). The Food Aid 
Committee may extend the Convention after this date for two-
year periods (Art. XXII(2)). With respect to all of the above-
described situations, however, the Food Aid Convention may 
enter into (or remain in) force only if the Grains Trade 
Convention is in force at the same time. If the Convention is 
extended, Members annual contributions may be subject to review 
by Members before the extension becomes effective (Art. 
XXII(3)).
    The Convention allows Members to withdraw at the end of any 
year upon at least 90 days' notice, but requires Members to 
fulfill any undischarged obligations for that year (Art. 
XXIII(1). A Member who has withdrawn may also subsequently 
rejoin the Convention (Art. XXIII(2)).

                           b. key provisions

Grains Trade Convention, 1995

    Reporting and recording of information on grains trade. As 
with its predecessors, a primary focus of the Grains Trade 
Convention is the collection and maintenance of information on 
international trade in grains, with the aim of providing 
information services to Members on the international grain 
economy. Article 3 of the Convention provides for the 
development and dissemination of information on grains trade, 
requiring that arrangements be made for regular reports and 
information exchange, as well as special studies, focusing on: 
``(a) supply, demand and market conditions; (b) developments in 
national policies and their effects on the international 
market; (c) developments concerning the improvement and 
expansion of trade, utilization, storage and transportation, 
especially in developing countries.''
    Under Article 7(1), Members are obligated to provide 
regular reports, and the Council is required to maintain 
records for each crop year, showing separately commercial and 
special transactions, of all shipments of grain by Members and 
all imports of grain from non-Members. A ``commercial 
purchase'' is a purchase ``which conforms to the usual 
commercial practices'' and is not considered a ``special 
transaction'' under the Convention (Art. 5(1)); a ``special 
transaction'' is defined to include sales on non-commercial 
credit terms, sales with special payment arrangements, sales 
for non-convertible currency, sales for tied loans granted by 
the exporting government, and certain barter transactions (Art. 
5(2)). The Council must also maintain, to the extent possible, 
records of all shipments between non-members (Art. 7(1)).
    Members must send the Executive Director information on 
quantities of grain involved in commercial and special 
transactions ``as the Council within its competence may 
require'' (Art. 7(3)(a)). Members must also send the Executive 
Director information relating to export prices ``as the Council 
may require'' (Art. 7(3)(b)). The Council must develop 
information on its own regarding prevailing grain 
transportation costs, but Members must provide supplementary 
information ``as the Council may require'' (Art. 7(3)(c)). 
Members are also obligated to provide, ``as far as possible,'' 
information that the Council may require regarding their grain 
supply and demand and to ``report promptly all changes in their 
national grain policies'' (Art. 7(2)).
    Market Conditions Committee. The Convention requires the 
IGC to establish a new Market Conditions Committee (MCC), open 
to all Convention Members (Arts. 3, 16). The MCC, which 
replaces a Convention subcommittee devoted to the same issue, 
to be headed by the Executive Director, unless the IGC 
determines otherwise (Art. 16(1)). Establishment of the 
Committee is aimed at improving the collection and presentation 
of information in the reports and studies mandated under 
Article 3 of the Convention and, to this end, the Committee is 
tasked with continuously reviewing and reporting to Members on 
the international grain economy (Art. 16(3)). The Committee is 
also intended to provide advice to the Convention Secretariat 
in carrying out its informational role and thus supplement the 
guidance already provided by the Council to the latter (Art. 
16(4)). If the Committee believes that economic developments 
``seriously threaten'' to affect Members' interests (or such 
information is brought to the attention to the Committee by the 
Executive Director of any Council Member) the Committee is to 
report these facts to the Executive Committee, which must meet 
within 10 days to review the situation and, if appropriate, 
request that a Council session be convened to pursue the matter 
further (Art. 4). The Convention envisions broad participation 
in the MCC, as the Committee is viewed as a means of enabling 
more Members to participate in the Council's work (Art. 3(2)), 
and Committee meetings are open not only to Members but also to 
representatives of non-Member governments and international 
organizations (Art. 16(2)).
    Financial contributions. The Convention requires that 
Member Governments meet the expenses of their Council 
delegations, and their representatives to Committees and 
working groups (Art. 21(1)). Other expenses necessary for the 
administration of the Convention are met by annual 
contributions from all Members (Art. 21(1)). Contributions are 
proportional to a Member's voting strength; the number of votes 
allocated to a Member are to be regularly reviewed and adjusted 
to take into account trade developments (Arts. 21(1), 11). As 
stated in Article 21(1), ``the contribution of each member for 
each fiscal year shall be in the proportion which the number of 
its votes in the Annex bears to the total of the votes of 
members in the Annex, as adjusted under Article 11 to reflect 
the membership of the Convention at the time when the budget 
for that fiscal year is adopted'' (Art. 21(1)). The Council 
assesses Member contributions when it annually approves its 
budget for the forthcoming fiscal year (Art. 21(3)).
    Allocation of Voting. The number of votes allocated to 
Members for the first three years of the Convention (that is, 
until June 30, 1998), for purposes of the entry into force of 
the Convention and financial contributions, are listed in the 
Convention Annex. Whenever the Convention is extended, the 
Council must review and adjust Members' votes; the adjustments 
are to ``bring the distribution of votes more closely into line 
with current grain trade patterns, and shall be in accordance 
with the methods specified in the Rules of Procedure'' (Art. 
11(3)). In addition, if the Council decides that ``a 
significant shift in world grain trade patterns has occurred,'' 
it must review and may adjust Members' votes (Art. 11(4)). Such 
an adjustment is to be considered a Convention amendment, 
subject to the requirements of Article 32, the Convention's 
amendment article (Art. 11(4)).
    Concessional transactions. Members agree to conduct 
concessional transactions in grains in a manner that ``avoid[s] 
harmful interference with normal patterns of production and 
international commercial trade'' (Art. 6(1)). More 
specifically, both supplying and recipient members are to 
``undertake appropriate measures to ensure that concessional 
transactions are additional to commercial sales which could 
reasonably be anticipated in the absence of such transactions, 
and would increase consumption or stocks in the recipient 
country'' (Art. 6(2)). Among other things, measures by FAO 
members must be consistent with the FAO Principles of Surplus 
Disposal and may require that a ``specified level of commercial 
imports of grains agreed with the recipient country be 
maintained on a global basis by that country'' (Art. 6(2)). 
Before concluding concessional export transactions with 
recipients, exporting members must consult to the maximum 
extent possible with other exporters whose commercial sales 
might be affected by such concessional transactions (Art. 
6(3)).

Food Aid Convention, 1995

    The heart of the Food Aid Convention is Article III, which 
defines donor contributions in detail. Under Article III, 
Convention Members agree ``to contribute to developing 
countries grains as food aid, suitable for human consumption 
and of an acceptable type and quality, or the cash equivalent 
thereof, in the minimum annual amounts specified'' in the 
Article (Art. III(1)). Priority is to be given to countries 
classified by the OECD as least developed, other low-income 
countries, or lower middle-income countries (Art. III(1)). 
While contributions are to be made in the form of grains, 
donors may provide, at the request of recipient countries, 
limited quantities of pulses against their Convention 
obligations, provided these are of ``an acceptable type and 
quality and are suitable for human consumption'' (Art. III(3)).
    The United States is the largest donor nation, followed by 
the European Community. Minimum contributions (in tons) are set 
forth in Art. III(4) as follows:

                                                                        
                                                                        
                                                                        
  Argentina................................................       35,000
  Australia................................................      300,000
  Canada...................................................      400,000
  European Community and its member states.................    1,755,000
  Japan....................................................      300,000
  Norway...................................................       20,000
  Switzerland..............................................       40,000
  United States............................................    2,500,000
                                                                        


    While Members are to place contributions in an ``f.o.b 
[free on board] forward position,'' they are encouraged to bear 
transportation costs ``beyond the f.o.b. stage,'' particularly 
in emergency conditions or where shipments to low-income, food 
deficit countries are involved (Art. III(6)). To the greatest 
extent possible, cash contributions for the purchase of grain 
for recipient countries (as provided for in Article IV) are to 
be used to buy grain from developing countries, with preference 
given to the developing members of the Grains Trade and Food 
Aid Conventions (Art. III(7)(a)). At the same time, in all 
transactions resulting from cash contributions, ``special 
regard shall be had'' for the quality of the grain; the cost, 
insurance and freight (c.i.f.) advantages of using the specific 
supplier; the potential for speedy delivery to the recipient; 
and the specific requirements of the recipient (Art. III(7)). 
Moreover, cash contributions are not normally to be used to 
purchase grain that is the same type as the supplier country 
has received as food aid in the same year (or a previous year, 
if the grain is still being used) (Art. III(7)). To assist 
recipients in planning their development programs, the 
Convention requires donors as far as possible to make 
contributions on a ``forward planning basis'' and exhorts them 
to indicate in advance the gift and non-gift elements of 
donations (Art. III(8)).
    If a Member is unable to provide the full amount of grain 
required in a given year, it will be added to its requirements 
for the subsequent year unless the Committee decides otherwise 
because of high transportation costs (Art. III(9)). Members 
must submit ``regular and timely'' reports to the Food Aid 
Committee regarding the amount, content, channeling and terms 
of their contributions (Art. III(10)). Among the powers and 
functions of the Food Aid Committee is a requirement that it 
``keep under review the way in which the obligations undertaken 
under this Convention have been fulfilled'' (Art. X(1)).

                  IV. Entry Into Force and Termination

                          a. entry into force

    Both treaties entered into force on July 1, 1995--two years 
prior to the Executive's submission of the treaty to the Senate 
for its advice and consent to ratification. The treaties limit 
accession until June 30, 1995, unless extensions are granted. 
The United States has been granted such an extension, and may 
accede to the Convention by submitting instruments of 
ratification to the Secretary General of the United Nations.

                             b. termination

    Parties may withdraw from the treaties by giving written 
notice to the Secretary General of the United Nations at least 
ninety days prior to the end of the fiscal year (in the case of 
the GTC) or any calendar year (in the case of the FAC), but the 
obligations under the treaties continue through the end of that 
fiscal or calendar year.

                          V. Committee Action

    The Committee on Foreign Relations held a public hearing on 
the proposed treaties on Wednesday, May 13, 1998. The hearing 
was chaired by Senator Hagel. The Committee considered the 
proposed treaty on Tuesday, May 19, 1998, and ordered the 
proposed treaty favorably reported by voice vote, with the 
recommendation that the Senate give its advice and consent to 
the ratification of the proposed treaty subject to one 
declaration, and one proviso.

                         VI. Committee Comments

    The Committee on Foreign Relations recommends favorably the 
proposed treaties. On balance, the Committee believes that the 
proposed treaties are in the interest of the United States and 
urges the Senate to act promptly to give its advice and consent 
to ratification. Several issues did arise in the course of the 
Committee's consideration of the treaties, and the Committee 
believes that the following comments may be useful to Senate in 
its consideration of the proposed treaties and to the State 
Department.

                      a. no economic requirements

    Article 22 of the Grains Trade Convention provides that 
``the Council may, at an appropriate time, examine the 
possibility of the negotiation of a new international agreement 
or convention with economic provisions, and report to members, 
making such recommendations as it deems appropriate.'' 
According to the State Department this provision ``was included 
at the insistence of a small minority of members who wished to 
retain the right to raise the possibility of including economic 
provisions in a future Convention.''
    The Committee emphasizes its support for the Grains 
Agreement in its current form--without any economic conditions. 
Although Article 22 of the Grains Trade Convention leaves open 
the possibility of negotiating a future treaty with economic 
provisions, the Committee anticipates that the United States 
will object to such an effort and strenuously oppose the 
negotiation of such a treaty. The Grains Trade Convention 
enjoys bipartisan support in its current incarnation, as its 
primary focus is the collection and maintenance of information 
on international trade in grains in an effort to facilitate its 
Members' participation in the international grain economy. Any 
effort to create a intergovernmental mechanism for regulating 
or controlling grain prices or otherwise interfering in the 
international trade in grains would seriously undermine support 
for U.S. participation in the Grains Agreement.

                       b. provisional membership

    Article 26 of the Grains Trade Convention and Article XIX 
of the Food Aid Convention permit members to accept provisional 
application of the treaty commitments pending ratification of 
the treaty. According to the State Department the United States 
has not accepted provisional membership, but has ``been allowed 
to participate in the International Grains Council as a full 
member with voting rights and an expectation--but not an 
obligation--that it pay its annual dues pending deposit of its 
instrument of ratification. Authority to participate in and 
make payments to the International Grains Agreement prior to 
ratification of the treaty derives from section 5 of the State 
Department Basic Authorities Act.''
    Section 5(a) of the State Department Basic Authorities Act 
(P.L. 84-885; 22 U.S.C. Sec.  2672) authorizes participation by 
the United States in international activities for which 
provision has not been made by the terms of any treaty, 
convention or special Act of Congress. The provision makes 
clear, however, that this ``subsection shall not be construed 
as granting authority to accept membership for the United 
States in any international organization, or to participate in 
any international organization for more than one year without 
the approval of Congress.'' (emphasis added) The Department of 
State contends that such approval is provided in annual 
appropriations legislation, as long as the Department has 
presented the request for the necessary funding in the annual 
Congressional Presentation Document.
    The Committee has serious questions about the Department's 
assertion that annual appropriations legislation provides 
sufficient legal authority--pursuant to Section 5 of the Basic 
Authorities Act--to participate in these organizations. 
Moreover, the reader of the annual budget documents presented 
by the State Department has to strain to learn that the Grains 
Agreement is not yet ratified. For example, the page in the 
Congressional Presentation Document (CPD) for the current 
fiscal year (fiscal 1998) where funding for the International 
Grains Council is sought makes no mention of the fact that the 
United States is not yet a party to the Grains Agreement. 
Rather, the reader must search elsewhere in the CPD--an 
appendix to the CPD for all Contributions to International 
Organizations--to learn that the United States is not yet a 
party to the Agreement, and that, as of that time (January 
1997), the Executive had not even submitted the Agreement to 
the Senate. In seeking funding for international organizations, 
the Executive should make it expressly clear in the CPD those 
cases where, as here, the United States is not yet a full 
member of the respective organization, and should indicate 
whether or not the President has sought the Senate's advice and 
consent to become a member of such organizations.
    The Committee notes that the State Department did not 
submit the Grains Agreement to the Senate for its advice and 
consent until April 7, 1997, nearly two years after the United 
States signed the Agreement. This delay is inexplicable, 
particularly given that the Agreement called for deposits of 
ratification to be submitted by June 30, 1995. Thus, the United 
States has participated in this organization for nearly three 
years, even though the Executive has not received (and did not 
seek until a year ago) the advice and consent to ratification 
of the Agreement. This apparently casual attitude to the advice 
and consent process is troubling.
    As a general matter, the Committee wishes to express its 
concern with a recent trend to delay submission of treaties to 
the Senate for many years, even as the United States 
participates in the activities of the organizations established 
under the treaty. Of the four treaties considered by the 
Committee during its May 19 business meeting, each was 
submitted to the Senate more than two years after signature by 
the United States. In one case, the Administration advanced 
legislation to bring U.S. law into compliance with the treaty, 
two years prior to a request for advice and consent to the 
treaty. The Committee believes this trend undermines the 
Senate's legal role in the advice and consent to ratification 
of treaties. The Committee may need to consider legislation to 
redress this issue should this trend continue.

              VII. Text of the Resolution of Ratification

    Resolved, (two-thirds of the Senators present concurring 
therein), That the Senate advise and consent to the 
ratification of The Grains Trade Convention and Food Aid 
Convention constituting the International Grains Agreement, 
1995, signed by the United States on June 26, 1995 (Treaty Doc. 
105-4), subject to the declaration of subsection (a), and the 
proviso of subsection (b).

    (a) DECLARATION.--The advice and consent of the Senate is 
subject to the following declaration:

        TREATY INTERPRETATION.--The Senate affirms the 
        applicability to all treaties of the constitutionally 
        based principles of treaty interpretation set forth in 
        Condition (1) of the resolution of ratification of the 
        INF Treaty, approved by the Senate on May 27, 1988, and 
        Condition (8) of the resolution of ratification of the 
        Document Agreed Among the States Parties to the Treaty 
        on Conventional Armed Forces in Europe, approved by the 
        Senate on May 14, 1997.

    (b) PROVISO.--The resolution of ratification is subject to 
the following proviso, which shall be binding on the President:

        SUPREMACY OF THE CONSTITUTION.--Nothing in the Treaty 
        requires or authorizes legislation or other action by 
        the United States of America that is prohibited by the 
        Constitution of the United States as interpreted by the 
        United States.

                                
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