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The Philippines, on behalf of the G-77 and China, said the debate on financial resources should focus on increasing ODA, improving market access, more favorable terms of trade, a solution to the debt problem, and foreign direct investment. Chile presented the results of the working group under the Montreal Process aimed at establishing criteria and indicators for the conservation and sustainable management of temperate and boreal forests. China said that the rational development of forest resources should reflect each country's economic and social needs.

Canada said the proposed panel on forests should operate in an open and inclusive manner and coordinate initiatives on priority issues. Malaysia called on developed countries to increase ODA levels. The CSD should also take steps to promote innovative financial mechanisms and assess the effectiveness of the policy instruments in the matrix. The terms of reference for the forestry panel should include: assessment of actions taken; enhancement of all types of forests; identification of cross-sectoral factors; and promotion of open and free trade in forest products. Brazil said the panel on forests could consider: broadening scientific knowledge; understanding factors affecting trade in forest products; and the feasibility of developing an agreed set of criteria and indicators.

India said that integrated watershed management with strong community involvement is the key to realizing sustainable agriculture. Bangladesh recommended more coordination between the Bretton Woods institutions and the CSD. Australia called on the CSD to do more work on economic instruments, but questioned the viability of taking up the debt issue in light of the work done by the Social Summit. She encouraged the forest panel to focus on indicators, labeling, institutional roles and analysis of the underlying causes of deforestation.

Iceland called for reductions in the use of agro-chemicals and support for integrated pest management. He also called for a more significant role for farmers. Mexico said the forest panel should develop criteria and indicators, encourage participation of relevant UN bodies and submit a preliminary report in 1996. The US said that the forest panel should be guided by the FAO Ministers' statement. He expressed skepticism about a single solution to the debt problem and air transport taxes. He supported a pilot project on tradeable CO2 permits.

Switzerland supported the creation of a forestry panel and welcomed the NGO initiatives on the mountain agenda. France, on behalf of the EU, welcomed debates involving the World Bank and the IMF and noted the EU's commitment to developing sustainable forestry principles. Uganda noted the omission of early warning systems on drought and indicators to predict desertification from the Secretary-General's report, and called for consideration of forestry within the framework of the Biodiversity Convention.

The Republic of Korea said technology transfers and new resources are the prerequisites for comprehensive CSD action. Indonesia supported time-bound targets for the introduction of integrated land management programmes by 2000 and a more holistic approach to currently fragmented management approaches. Hungary said an international exchange of information between foresters and policy-makers is needed. Iran said there is an urgent need for financial and technical assistance to help developing countries with low forest cover and to combat desertification and drought. Japan noted that the loss of forests is associated with global socio-economic and cultural consequences and supported the proposed forestry panel and the development of indicators.

Algeria said mobilization of new and additional financial resources and resolution of the debt problem is essential. The issue of economic instruments should be left to governments.

ESCAP has undertaken a number of activities to implement Agenda 21, including addressing urbanization and integrated land management, and combating desertification. Brazil expressed concern about decreasing ODA levels. The role of private capital flows in promoting sustainable development is essential, but it should not replace ODA. The Philippines recommended studying the feasibility of adopting economic instruments and encouraged developed countries to encourage private sector investment in developing countries. Greenpeace endorsed the need for a comprehensive debt strategy and more widespread foreign direct investment.

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