(EPU), and numerous working committees. The Council is the policy-making body of the Organization and is responsible for all substantive decisions. These decisions are binding on all members agreeing to the decision. The Council is composed of cabinet ministers of the member countries or their deputies. It usually meets at least once a month at the deputy level and approximately every 2 months at the ministerial level. The Executive Committee, consisting of seven members elected by the Council, reviews and makes recommendations on matters before they are considered by the Council. There are also a variety of committees which meet on a regular basis throughout the year. Of these, the "vertical" technical committees deal with questions relating to specific commodities (e. g. agriculture, coal, nonferrous metals) or sectors of the economy (e. g. inland transport, shipping). The "horizontal" committees are concerned with broad questions such as balance of payments, trade, general economic programs, and manpower. These committees meet frequently and formulate programs for final consideration by the Executive Committee and the Council. The Managing Board of EPU is also responsible to the Council. Functions and Powers The main task of OEEC has been the preparation of programs for European economic recovery. In this capacity, OEEC's function is to restore economic activity to a point where extraordinary outside assistance will no longer be required. In pursuing this objective, the member countries seek to increase production and trade, modernize industry, stabilize their finances, balance their accounts with the outside world, and reduce trade barriers. As the level of European production has risen and general recovery progressed, the Organization has devoted its energies. increasingly to such fundamental problems as intra-European trade, productivity, economic integration, and more recently also to special materials problems and financial stability. Under its program of trade liberalization, the Organization has already achieved considerable success in reducing import quotas, thereby increasing the flow of trade and directing it along more efficient lines. Within OEEC, member governments have collectively reviewed the national economic programs of the members. Al though no formal reconciliation of these plans is made, member governments have shown themselves willing to make readjustments in the light of the requirements of other countries. The broadest range of economic problems confronting Europe and their possible solutions are examined regularly by OEEC. The European Payments Union Although developed by OEEC and operating under its authority, EPU (European Payments Union) was created by a special agreement signed by all OEEC countries in September 1950. EPU provides for a multilateral system of intra-European payments. Surpluses earned in trade with member states can now be used to offset deficits incurred in trade with other members. As a result, EPU has eliminated the payments difficulties among OEEC countries which arise from bilateral settlements. Each country's major concern now is its over-all position in EPU. Importers in OEEC countries are no longer prevented from buying from efficient producers in other OEEC countries because of the payments position with a particular country. The formation of this payments system has made possible much of the progress in liberalizing intra-European trade and has resulted in substantial increases in such trade. The Managing Board of EPU is responsible for the execution of the September 1950 agreement and has the power to make decisions concerning the operation and management of the EPU fund. The U.S. Government, through the Economic Cooperation Administration, provided the initial working capital for EPU. Relations Between OEEC and Other OEEC maintains close relations with the Council of Europe through permanent liaison committees on both sides, which meet monthly in joint session to discuss matters of mutual interest. In addition, the Council of OEEC has agreed to prepare reports of its activities at the time of each session of the Consultative Assembly of the Council of Europe to be transmitted through the latter's Committee of Ministers. The Council of Europe Origin and Purpose FTER WORLD WAR II the idea of uniting Europe gained new and widespread support. Prominent political leaders, such as Winston Churchill, Paul-Henri Spaak, Count Carlo Sforza, and Georges Bidault, endorsed the idea; and citizen groups, such as the European Movement, were formed to promote it. Although they supported cooperation on an intergovernmental basis, they did not consider this to be sufficient and urged the formation of an organization which would represent not only governments but peoples and parliaments. In May 1948 the Congress of Europe, convened at The Hague by the International Committee of the Movements for European Unity (later called the European Movement), recommended that a European Assembly be established. This proposal was subsequently endorsed by the French Government and submitted to the Brussels Treaty Council in the fall of 1948. The British suggested instead the formation of an organization consisting of a Committee of Ministers. After negotiations among the Western Union countries, a preliminary draft was prepared providing for a Committee of Ministers and a Consultative Assembly. The Western Union powers invited Italy, Ireland, and the Scandinavian countries to participate in final negotiations for the treaty, and on May 5, 1949, the 10 powers signed the Statute of the Council of Europe. The statute is essentially a compromise between the idea of an intergovernmental committee and the idea of a European parliament. The aim of the Council of Europe is "to promote greater unity among the European countries in order to facilitate their economic and social progress." Organization The Council of Europe now consists of 15 members: the five Western Union countries, Ireland, Iceland, Italy, the Saar, Denmark, Norway, Sweden, the Federal Republic of Germany, Greece, and Turkey. The Saar is an associate member, entitled to representation in the Consultative Assembly but not in the Committee of Ministers, although it usually has an observer in the latter body. The Council is composed of three main bodies: (1) the Committee of Ministers, which represents the governments of the member countries; (2) the Consultative Assembly, which is composed of representatives from the national parliaments; and (3) the Secretariat. The Committee of Ministers consists of the Foreign Ministers, or representatives, of the member countries. The Consultative Assembly has 132 delegates, distributed among members primarily on the basis of population. Representatives are elected by the parliaments of the member countries or appointed in such a manner as the parliaments may determine. Under this procedure most of the national parties have, in practice, been represented except the Communist Party. In the Consultative Assembly each representative speaks and votes as an individual, a practice unique among international organizations. The Council of Europe has its headquarters in Strasbourg, where the Consultative Assembly holds its annual session, limited in duration to one month. In order to expedite its work, in the past 2 years the Assembly has split its annual session into two parts, with an interval of several months. The Assembly's sessions are public. The Committee of Ministers, which meets in private, holds its sessions at least twice a year. Functions and Powers The scope of the Council of Europe extends to virtually all fields except defense. When the Council was formed, however, other organizations which have similar functions, such as OEEC, were already in existence and functioning effectively. In order to avoid duplication of effort, most of the economic recommendations of the Assembly have been forwarded to The existence of these other organizations has somewhat limited the work which the Council of Europe could perform without duplication. Further, the divergence of views on the role and powers of the Council of Europe has made it difficult to obtain the necessary unanimity in the Committee of Ministers. OEEC. The Assembly by a two-thirds majority can make recom |