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Published online by Cambridge University Press: 04 April 2017
[Reproduced from U.N. Document E/5500 of June 14, 1974.
[The Report of the Group of Eminent Persons to Study the Role of Multinational Corporations on Development and on International Relations appears at I.L.M. page 800. Both of these Reports are before the 57th Session of the U.N. Economic and Social Council (July 3-August 2, 1974).
[Chapter IV (Towards a Programme of Action) of the Report entitled Multinational Corporations in World Development appears at 12 I.L.M. 1109 (1973). That Report was prepared by the Department of Economic and Social Affairs of the U.N. Secretariat to facilitate the work of the group of eminent persons.]
1 “Report of the Group of Eminent Persons to Study the Role of Multinational Corporations on Development and on International Relations” (E/5500/Add.1 (Parts I and II).
2 United Nations publication, Sales No. E.73.II.A.11.
3 Final Act of the United Nations Conference on Trade and Employment, Havana, Cuba, March 1948 (United Nations publication, Sales No. 48.II.D.I, E/CONF.2/78).
4 Official Records of the Economic and Social Council, Sixteenth Session, Supplement No. 11, annex II.
5 Multinational Corporations in World Development, p. 1.
6 Ibid., p. 4.
7 Ibid., p. 87.
8 Ibid., p. 88.
1/ United Nations publication, Sales No. 73.H-A.11.
1/ United Nations publication, Sales No. 73.II.A.11.
2/ There is general agreement in the Group that the word "enterprise" should be substituted for corporation, and a strong feeling that the word transnational would better convey the notion that these firms operate from their home bases across national borders. However, the term "multimcional corporations" is used in this report in conformity with Economic and Social Council resolution 1721 (LIII). See also alternative definitions in Multinational Corporations in World Development.
3/ International Development Strategy: Action Programme of the General . Assembly for the Second United Nations Development Decade (United Nations publication, Sales No. E.71-H.A.2), para. 50.
4/ Sicco Mansholt, a member of the Group, recommends that the sanctions imposed in accordance with due process of law of the host country may include expropriation without compensation.
5/ This principle has been recognized in resolution 88 (XII) of the Trade and Development Board of the United Nations Conference on Trade and Development which asserts the sovereign power of each State to fix the amount of compensation and the procedures for nationalization measures, and recognizes that any dispute which may arise in that connexion falls within the sole jurisdiction of the courts of that State.
6/ In this connexion may be noted a statement by the Subcommittee on Multinational Corporations of the United States Senate Committee on Foreign Relations, to the effect that if such indiscriminate support were to be sanctioned as normal, no country could welcome the presence of multinational corporations, and "over every dispute, or potential dispute, between a company and a host Government in connexion with a corporate investment, there would hang the spectre of intervention". (international Telephone and Telegraph Corporation and Chile, 1970-1971, report to the Committee on Foreign Relations of the United States Senate by the Sub-committee on Multinational Corporations (United States Government Printing Office, Washington D.C. , 21 June 1973) p. 18.)
7/ Final Act of the United Nations Conference on Trade and Employment, Havana, Cuba, March 19^8 (United Nations publication, Sales No. U8.II.D.U, E/COHF.2/78).
8/ If the investment is made in the form of imported machinery and equipment and the multinational corporation inflates their prices, the financial inflow may be overstated.
9/ The main lines of such action were set out in paragraphs (37) and (6U) of the International Development Strategy for the Second United Nations Development Decade, and in UNCTAD resolutions 39 (ill), on the transfer of technology, and resolution 73 (ill) on restrictive business practices.
10/ Studies, and Reports, New Series No. 79 (International Labour Office, Geneva, 1973).
11/ Such participation, as well as other joint negotiations referred to below, can only be effective if the means of communication at the disposal of labour are comparable to those of multinational corporations. The latter should allow the representatives of the workers reasonable leaves of absence and travel expenses appropriate to that purpose.
12/ See foot-note 6, above.
13/ Official Records of the Economic and Social Council, Sixteenth Session, Supplement No. 11, annex II.
14/ Public Law No. 692 in United States Statutes at Large, vol. 1*9, part 1* p. 1526".