Case concerning the Aerial Incident of November 7, 1954 (United States v. Soviet Union): On July 7, 1959, an application instituting proceedings against die Soviet Union was filed in the Registry of the Court by the government of the United States. In its application the government of the United States alleged that on November 7, 1954, one of its aircraft was attacked and destroyed over the Japanese island of Hokkaido by fighter aircraft of the Soviet Union. It requested the Court to find that the Soviet Union was liable for the damages caused and to award damages in the sum of $756,604. It also stated that it had submitted to the Court's jurisdiction for the purposes of this case and that it was open to the government of the Soviet Union to do likewise. In accordance with Article 40 of the Statute of the Court, the application was thereupon communicated by the Registry to the government of the Soviet Union.

To mark the celebration of the tenth anniversary of the World Health Organization (WHO), the eleventh regular session of the Assembly was preceded by a special two-day tenth anniversary commemorative session. The eleventh session was held in Minneapolis, Minnesota, from May 28 to June 13, 1958. The President of the Assembly (Dr. Leroy E. Burney) stated in his inaugural address that WHO's efforts during its first ten years had been concentrated largely on the fight against the major communicable diseases. He emphasized the necessity for more research, the importance of intensifying training activities, and the need for wider public participation in health work. The Director-General, introducing his report on the work of WHO during 1957, stated that one indication of the direction in which WHO's work was likely to develop in the future was to be found in the repeated references made in the report to the coordination of research. He stated that one of the most pressing immediate needs continued to be the strengthening of national health services. He proposed an effective working budget for 1959 of $14,287,600, which represented an increase of 5.3 percent over the effective working budget for 1958. The Assembly approved the proposed budget.

The Annual Report of the Executive Directors of the International Monetary Fund for the fiscal year ended April 30, 1958, was transmitted to the Chairman of the Board of Governors on July 25, 1958. In its discussion of the economic climate of 1957–1958, the report noted that at the beginning of 1957, the world economy was still dominated by boom conditions generated by an intense world-wide wave of private and public investment which was reflected in a large demand for capital. Most of the payments problems that called for treatment during the first three-quarters of the year had their origin in the inflationary methods which were often used to satisfy this demand, and there was a dearth of loanable funds and a growing tension in the money markets. The financial problems that presented themselves in this situation were greatly intensified early in 1957 by the temporary effects of the tensions that arose in connection with the Suez events and, later in the year, by speculative movements against certain European currencies.

The first Assembly of the Intergovernmental Maritime Consultative Organization (IMCO) was held in London from January 6 to 19, 1959. All of the 30 member governments except Burma were represented at the Assembly, which chose Mr. Louis C. Audette of Canada as its President. Mr. Audette had served as Chairman of the twelve-nation preparatory committee which had made arrangements for the first Assembly. The representatives of Japan and the United Kingdom were elected to fill the posts of First and Second Vice-Presidents.

The Administrative Telegraph and Telephone Conference of the International Telecommunication Union (ITU) was held in Geneva, September 29–November 29, 1958, to revise the regulations in telephony and telegraphy adopted in Paris in 1949. By a large majority the Conference adopted the principle that the Telephone Regulations should be world-wide in scope. The Telegraph Regulations, however, were still to include provisions applicable only to Europe, with reference to rates in the European system, the phototelegraph service, and different rebates for press telegrams. The three resolutions concerning telegraphy which the Conference decided to include in the regulations which it adopted instructed the International Telegraph and Telephone Consultative Committee (CCITT) to study the possibility: 1) of making the provisions relative to the phototelegraph service world-wide in scope; 2) of modifying international alphabet No. 2 so that at least two additional signals from the figure case would be available to administrations or recognized private operating agencies for the needs of their internal services; and 3) of removing difficulties which still existed for the operational services and for the users in the counting of words. The Conference also made certain detailed changes in the Telegraph Regulations.

The second part of the tenth session of the Consultative Assembly of the Council of Europe was held from October 10 to 17, 1958. The Assembly first discussed the supplementary report of the Committee of Ministers. M. Fatin Zorlu (Turkish Minister for Foreign Affairs and present Chairman of the Committee of Ministers), presenting the report, recalled that two of the Council's most important achievements during the period covered were the setting up of the Cultural Fund and the fulfilment of the requirements for the setting up of the European Court of Human Rights. He also reviewed several topics worthy of particular attention, such as strengthening the Assembly's relations with national parliaments, nuclear and thermonuclear tests, and the European Social Charter. Concerning the development of Africa, which was treated in the report, the Assembly adopted an order instructing its Economic Committee to present detailed proposals regarding an investment statute, a guarantee and financial assistance fund, and the expansion of technical assistance by the European countries.

The International Bank for Reconstruction and Development announced on June 10, 1959, a loan equivalent to $11.6 million to the Union of South Africa. The funds were to help carry out a railway expansion program, executed by the South African Railways and Harbors Administration, that had been one of the chief objects of public investment in the Union since the end of World War II. Twelve banks participated in the loan for a total amount of $2,484,000, representing the first three maturities and parts of the fourth and fifth maturities which were to fall due between December 1961 and December 1963. Among the participating banks were: the Bank of America, Continental Illinois National Bank and Trust Company, The Philadelphia National Bank, The New York Trust Company, Morgan Guaranty Trust Company of New York, National Shawmut Bank of Boston, The First National Bank of Chicago, The Chase Manhattan Bank, First National City Bank of New York, The Northern Trust Company, and the Swiss Bank Corporation (Basle). Amortization of the loan, which was for a term of ten years and bore interest of 6 percent, was to begin in December 1961.

The International Bank for Reconstruction and Development announced on April 8, 1959, a loan equivalent to $25 million to India for the Koyna hydro-electric power project inthe State of Bombay. This loan was expected to cover most of the foreign exchange requirements of the total cost of the first stage of the project, estimated at the equivalentof $118 million. It was for a term of 25 years and bore interest of 5¾ percent, including the I percent commission allocated to the Bank's Special Reserve. Amortization was to begin in May 1965.

The Intergovernmental Committee of Ministers engaged in negotiating the proposed free trade area met in Paris, July 24–25, 1958. It was reported that following the session, the chairman of the group, Mr. Reginald Maudling, expressed hope for a definite agreement on most major issues. He stated that if real progress toward an accord were attained, less importance would be attached to the much-discussed proposal to extend to the members of OEEC the 10 percent tariff reductions to be made among the members of the European Economic Community.

The twenty meetings of the 35th session of the Council of the International Civil Aviation Organization (ICAO) were held between November 12 and December 17, 1958, except for the first meeting which was called during the committee phase on September 25. At its last meeting the Council unanimously decided to appoint Mr. R. M. McDonnell of Canada, Secretary General of ICAO to succeed Carl Ljungberg of Sweden, who had served in that post for more than seven years. Additional elections and appointments, inter alia, included: W. G. Algar of Ireland, First Vice- President of the Council for 1958–1959; Col. E. Chagas of Brazil, Second Vice-President; Henry Soderberg of Sweden, Third Vice-President; J. R. Belcher of Canada, Chairman of the Finance Committee.

The 140th session of the Governing Body of the International Labor Office was held in Geneva from November 18–21, 1958. It decided to place three new items on the agenda of the 44th (1960) session of the International Labor Conference, viz.: contribution of the International Labor Organization (ILO) to the raising of incomes and living conditions in rural communities in countries in process of development; reduction of hours of work; and workers' housing. In general, the Governing Body endorsed the suggestions before it regarding action to be taken on the resolutions adopted by the International Labor Conference at its 42d session, specifically by authorizing the Director-General to communicate to the governments of member states resolutions concerning publication of labor laws, industrial health and safety campaigns, management development, and the expansion of international trade. The resolution regarding the last topic was also to be sent to the UN and to the Executive Secretary of the General Agreement on Tariffs and Trade. A resolution dealing with labor-management relations was to be communicated to governments with the request that they bring it to the attention of employers' and workers' organizations, while a resolution concerning increased technical assistance for the integration of indigenous populations was to be sent to governments, to the UN, and to several relevant specialized agencies.

The United Nations Educational, Scientific and Cultural Organization (UNESCO) held its tenth General Conference in Paris from November 4 through December 5, 1958, under the presidency of Mr. Jean Berthoin (France). The General Conference recognized as valid the credentials of the delegations of 78 member states, the delegations of 4 associate members, and observers from 2 non-member states. The Conference had before it the report of the Director-General, covering the activities of the organization during 1957 and through September 1958, and the proposed program and budget for 1959–1960. The Director General summed up the activities of UNESCO in 1957–1958 by stating that these years had been marked by the launching of three Major Projects, by the coordinated expansion of the Expanded Program of Technical Assistance and of the program of participation in the activities of member states, by world-wide interest in certain particular achievements in the ordinary program, by a greater degree of concerted action within the UN system, and by the inauguration of UNESCO's definitive head-quarters in Paris on November 3, 1958.

The Executive and Liaison Committee of the Universal Postal Union (UPU) met at Berne from May 5 to 16, 1958. After the rules of procedure for the work and deliberations of the Committee had been discussed and approved, the Committee considered the tasks which had been entrusted to it by the UPU Congress. These tasks had been classified into two groups. The first group included the study of various proposals, the solutions of which might be sought by the International Bureau. The second group comprised ten problems, among which were the following: perusal of the examination of the Universal Postal Convention's general structure; determination of the methods to be followed in order to execute the accepted principle of the incorporation of the air mail provisions into the Convention in the form of a special chapter; continuation of work on the multilingual vocabulary for the international postal service; and continuation of work on universal decimal classification. The Committee decided to entrust each one of these tasks to a separate subcommittee. Thus it reconstituted the three subcommittees (air mail, multilingual vocabulary, decimal classification) which had already worked under the former Executive Committee and set up seven new subcommittees. The air mail subcommittee proposed that the Executive Committee should take action regarding an International Civil Aviation Organization request for the collaboration of UPU in the collection of the information necessary for the study which it intended to undertake concerning commercial rights in the transport of international air mail.

On February 20, 1959, Denmark announced the repurchase from the International Monetary Fund of $17 million which, together with repurchases made in March and June 1958, exceeded by $8.5 million the $34 million purchased by Denmark from the Fund in July 1957. The excess was applied to reducing the Fund's holdings of kroner to 75 percent of quota. On March 19, the United Kingdom made a repurchase of $200 million, in line with its announced intention to repurchase its outstanding balance monthly through 1960 and 1961, or more expeditiously if possible.

The European Parliamentary Assembly met in ordinary session from October 21 to 24, 1958, at the House of Europe in Strasbourg. After M. Robert Schuman, President of the Assembly, had opened the proceedings, statements were made on the activities of the European Economic Community (EEC or common market) during the first nine months of its existence and on the activities of the European Atomic Energy Community (Euratom). In regard to the European Coal and Steel Community (ECSC), the Assembly heard a statement by M. Pierre Wigny, Minister for Foreign Affairs of Belgium, in which he noted the present coal crisis in Europe, and the differences between the common market and the free trade area—the one aiming for progressive integration, the other only for facilitating trade. This speaker was followed by M. Paul Finet, President of the High Authority of ECSC, who set out the present situation concerning coal in the common market area. He stated that the situation was undeniably serious and pointed out that pithead stocks had more than trebled, rising from 7 million metric tons in 1957 to 22 million tons in 1958. Belgium and Germany had been particularly hard-hit. He reviewed the action taken by the High Authority in trying to make the marketing rules more flexible and to stabilize production and imports, and appealed to the Parliament for support in these proposals, which had been made to the Council of Ministers of ECSC. A debate ensued on the general subject of the European communities.

The 43d session of the International Labor Conference was held in Geneva from June 3 to 25, 1959, under the presidency of Mr. E. Dreyer (Danish government delegate). The Conference was attended by over 900 delegates, advisers, and observers from 75 member countries and 15 territories, including the Ministers of Labor from 41 countries.

The report of the Director-General, Dr. Vittorino Veronese, on the activities of the United Nations Educational, Scientific, and Cultural Organization (UNESCO) in 1958 wad divided into the usual three parts, namely: relations with member states and international organizations: execution of the program; and administrative services. Under the first heading, the Director-General reported that Albania, Ghana, and the Federation of Malaya had joined the organization during 1958, thereby bringing the total number of members to 81. Moreover, Kuwait, The West Indies Federation, and the Trust Territory of Somaliland were admitted as associate members. Singapore was also admitted as an associate member, to become effective on December 31, 1959.

The tenth session of the World Meteorological Organization (WMO) Executive Committee was held in Geneva from April 29 to May 17, 1958. The Committee considered the recommendations arising from the second session of the Commission for Bibliography and Publications; the comments received on the draft International Meteorological Vocabulary were noted. The recommendations resulting from the second session of the Commission for Synoptic Meteorology, which dealt with international meteorological codes, were approved and incorporated in a single Executive Committee resolution. The Committee also considered the decisions taken at the second session of Regional Association V (South-West Pacific). The new president of this association announced that it was proposed to set up a tropical analysis center in Australia and this development was welcomed by the Committee.

Ministerial representatives attending the thirteenth session of the contracting parties to the General Agreement on Tariffs and Trade (GATT) held a meeting from October 16 to 18 preceding the plenary session. According to the communique issued after the meeting, it was the view of the ministers that the outlook was promising for a continuing steady expansion in international trade and for substantial further progress in achieving the objectives of GATT, but they noted that serious trade and payments problems continued to confront many of the less developed countries, that unsatisfactory conditions still prevailed with respect to world trade in a number of primary commodities, and that special difficulties threatened to impede the future growth of international trade in agricultural products. The ministers reviewed the trends in international trade and in particular took into account a report prepared by a Panel of Experts, entitled Trends in International Trade The report, which was also before the thirteenth session, contained a number of recommendations. Among them were: the extension of more economic aid; more adequate domestic measures against business recessions; the provision of greater international liquidity; the provision of funds for buffer stock action; a reduction of certain revenue duties in countries consuming tropical foodstuffs and beverages; a moderation of agricultural protectionism in western Europe and North America; a shift in methods of agricultural protection in such countries away from price supports toward deficiency-payment systems; a reduction of protection against the import of minerals; and the avoidance of trade-diverting measures in regional economic arrangements such as the European Economic Community (common market).

The Tenth Annual Report on Exchange Restrictions of the International Monetary Fund (IMF), covering the period from May 1958 to April 1959, was transmitted to members and governors of the Fund on June 3, 1959.1 In Part I of the report the establishment of external convertibility of the major European currencies was described as the most important single achievement of the postwar period in the field of exchange restriction. This event took place at the end of 1958, while in early 1959 other countries adjusted their exchange control regulations to the new conditions. A major factor behind the move was pinpointed as the general gain in strength, both economic and financial, of the industrialized countries and, with the exception of the United States, their substantial addition to their gold and dollar reserves. Most of the less developed countries continued to experience difficulties, according to the report, but several were putting into effect comprehensive stabilization programs which included the simplification of their exchange systems. The report considered the immediate effects of this concerted move and the impact it might be expected to have on the restrictions that still remained. It also pointed out that during the period under review appreciable further progress was made in the substitution of unitary exchange rates for multiple currency practices, and that there was a general decline in the number of bilateral payments arrangements between member countries of the Fund.