^* The paragraph numbers cited in the present report refer to the draft United Nations code of conduct on transnational corporations as contained in thereport of the Commission on Transnational Corporations on i t s special session,(Official Records of the Economic and Social Council, 1983, Supplement No. 7(E/1983/17/Rev.l), annex II ).

^* [See I.L.M.pages 627, 632, 633, 633, and 634 respectively.]

^/1 /Official Records of the Economic and Social Council, 1983, Supplement No. 7 (E/19 8 3 / 1 /Rev .l) . Annex II of that report contains the draft United Nations Code of Conduct on Transnational Corporations.

^/2 For the report, see E/1984/9.

^/3 Economic and Social Council resolution 1982/68, para. 7.

^/4 See Official Records of the Economic and Social Council, 1983, Supplement No. 7 (E/19 83/17/fcev.l), annex IV.

^/5 The introduction to the set of compromise proposals described them in the following way:"This document contains a set of proposals which, in the opinion of theChairman of the special session and the Rapporteur in their capacities asChairmen of the Working Groups II and I, respectively, constitute compromiseformulations which could resolve some of the major outstanding issues in thecode of conduct on transnational corporations."The following suggestions on the sections on definitions and on the treatmentof transnational corporations are presented each as a package representing adelicate balance between the positions of the various groups represented inthe Commission. It is the firm belief of the proponents that any major changein a particular part of this document i s likely to upset this balance."In drafting these proposals, due account was taken of the prioriti esestablished by the Economic and Social Council in i t s resolution 1982/68.These proposals have been submitted in the genuine hope that they will make ameaningful contribution to the expeditious conclusion of our work."The Chairman and the Rapporteur would welcome the reactions of members of theCommission to this document.”

^/6 Official Records of the Economic and Social Council, 1983, Supplement No. 7 (E/1983/17/Rev.l), annex V.

^/7 Ibid., annex III.

^/8 See“Transnational corporations! A code of conducts a capposite text of formulations by the Chairman and elements prepared by the United Nations Centre onTransnational Corporations”(Working Paper No. 10 of 7 November 19 79 of theIntergovernmental Working Group on a Code of Conduct) , para. 1.

^/9 These include General Assembly resolutions 3201 (S–VI) and 3202 (S–VI) onthe Declaration and the Programme of Action on the Establishment of a NewInternational Economic Order, 3362 (S–VII) on development and internationaleconomic co–operation and 35/56 on the International Development Strategy for theThird United Nations Development Decade and Economic and Social Council resolutions1721 (LIII), 1908 (LVII) and 1913 (LVII) on the impact of transnationalcorporations on the development process and on international relations and 1980/60on the role of transnational corporations in the progress made towards theestablishment of the new international economic order and obstacles that impede it.

^/10 E/C.10/1983/CRP. 4.

^/11 The Commission reached agreement at its special session on aqualification in regard to“policies”in paragraphs 9 and 26. It agreed to includein those paragraphs the qualifying phrase“set out by the Government. Inaddition, in the proposal prepared by the Rapporteur of the special session on thepreamble, the term“policies”would be qualified by the word“established.