AIDE MEMOIRE Background to the relations between the General Secretariat of the OAS and the Association for the Promotion of the American Capital of Culture At the LXXVII ordinary meeting of CEPCIDI, held on 28 February 2002, the delegation of Chile presented for the consideration of CEPCIDI a draft Declaration of Support for the American Capital of Culture. CEPCIDI decided to refer the proposal to the Subcommittee on Partnership for Integral Development Policies of CEPCIDI for study and, at the request of various delegations, invited the Department of Legal Services of the OAS to prepare a paper on the background to the relationship between the General Secretariat of the OAS and the Association for the Promotion of the American Capital of Culture (hereinafter “the Association” or “CAC”). The present paper has been prepared in response to that request. I. Institutional characteristics of the Association 1. According to an informational document of the CAC provided to the OAS General Secretariat in 1999 by Mr. Xavier Tudela, President of CAC, the Association was established “at the initiative of a group of citizens concerned about and sensitive to the cultural life of the American continent, with the aim of establishing the American Capital of Culture and promoting its commemoration annually”. The Association’s informational document adds that “the initiative would promote better understanding and aid in the dissemination of the culture and history of the peoples of the Americas, in the conservation and protection of their cultural heritage, in cultural exchanges and artistic and literary creation, including in the audio-visual sector, and in the promotion of cooperation among countries, both in the American continent and in other continents”, and that this initiative drew its inspiration from a similar mechanism that exists in Europe known as the European Capital of Culture 2. According to a copy of the Statute of the Association for the Promotion of the American Capital of Culture (Annex A) provided by Mr. Tudela, the latter was established on March 30, 1998 “as a not-for-profit association whose purpose is to establish and promote the celebration of the “American Capital of Culture”. (Article 1 of the Statute). The Statute indicates that the Association is headquartered in Barcelona, Spain, and the last page of the copy of the Statute states that the Association is legally inscribed in the Barcelona Register of Associations, under the number 21022. 3. The Association has an Assembly comprised of all its members as its supreme organ. (It does not specify the frequency with which the Assembly meets or the number of its members). It also has a Board of Directors, which is responsible for the administration of the Association and is comprised of a President, a General Secretary and a Treasurer (Article 8 of the Statute). The President of the Association implements the decisions of the Board itself and oversees the day-to-day functioning of the Association. He represents the Association in judicial and administrative matters and in all civil forums. (Article 10 of the Statute). The Board of Directors is required to submit reports on its management to the General Assembly. According to Article 16 of the Statute, the resources of the Association are derived from: (1). Regular membership dues which members pay, on a schedule and in such amounts as the Assembly may decide; and (2). Extraordinary resources, such as donations, legacies or subsidies. Article 16 adds that at the time of its establishment the Association had no assets. II. Relations between the Association and the OAS General Secretariat 1. During the month of September 1998, the President of the Association sent notes to the Secretary General and to the Chairman of CEPCIDI, respectively, explaining that the initiative of the American Capital of Culture was aimed at “helping to promote greater understanding among the peoples of the Americas and to project the American culture to other continents” and indicating other benefits which the initiative will have. In the same notes, he indicated that January 1, 2000 would be the date on which the first American Capital of Culture would be designated and requested “the honorary support” of the OAS. (See Annex B). The Chairman of CEPCIDI, at the time the Permanent Representative of Venezuela, Ambassador Francisco Papparoni, suggested that the General Secretariat should study the background and give consideration to the signing of an agreement of cooperation with the Association, as a non-governmental organization. 2. After a review of the Statute of the Association and considering that its objectives were consistent with those of the Organization, in December 1998, the Secretary General and the President of the Association subscribed to an Agreement of Cooperation of a general nature1, in which the parties undertook to mutually cooperate in matters of common interest and to exchange information, to consult each other on matters of common interest, to explore the possibility of undertaking specific projects under conditions to be agreed upon in each case, and to invite each other to designate observers to attend meetings and conferences of interest to both institutions (Annex C). 3. In July 1999, the Association designated as the American Capital of Culture for 2000 the city of Yucatán, Mérida. 4. In the month of August 2000, the City of Pereira, Colombia, was selected by the CAC to be declared as the American Capital of Culture for the year 2001. However, in the month of January 2001, the Mayor of Pereira declined the designation. 5. On February 5, 2001, the newspaper “El Tiempo” of Bogota, Colombia, in its Cultural Affairs section, published an article calling into question the procedures of the Association for selecting the American Capital of Culture, insofar as the jury that 1 The basic elements of the Agreement included in the preambular part a commitment by member States of the OAS to preserve and enrich the cultural heritage of the American peoples and the principal objectives of the Association were, inter alia, to establish from 1 January 2000 the American Capital of Culture and to promote annually its commemoration in order to promote knowledge about and disseminate the culture and history of the peoples of the Americas, as well as to give impetus to the conservation and protection of their cultural heritage and artistic and literary creations, and to promote cooperation and cultural exchanges among countries, both in the Americas and in other continents. 2 selects the winning city is not an international jury unrelated to the Association but is comprised almost exclusively of members of the Association and particularly of its Board of Directors. It also questioned the lack of public information about the competition between candidate cities and, particularly, the fact that the winning city had to pay to the Association a sum of US$450,000 to be administered exclusively by the Association without any participation by the authorities of the selected city. It indicated that the Internet page of the CAC had gaps and did not provide information on “the background of its President, Xavier Tudela, who was its cultural administrator” and that the only entity which he cited as a reference is the OAS with which the Association has signed a Cooperation Agreement about which no details are given. During the same month of February, the weekly “La Revista Peninsular” of Mérida, Yucatán, Mexico, published a series of articles questioning the merit of the title of American Capital of Culture, the amount of money that had to be paid to the CAC and the fact that various cities in Colombia had declined the award when they learned of the cost it entailed. The articles mentioned the OAS as the Organization that appeared to sponsor the abovementioned Association. 6. On February 10, 2001, the city of Cali also declined to be designated American Capital of Culture, which, according to information gathered from newspapers, was being asked to pay to the CAC the amount o US$475,000. 7. In early May 2001, the Secretary General received a letter from the Deputy of the LV Legislature of the State of Yucatán, Dr. José Limber Sosa Lara, in which Dr. Sosa Lara asked what was the relationship between the OAS and the Association for the Promotion of the American Capital of Culture. In the same letter, Deputy Sosa Lara indicated that in 1999 it was learnt that the city of Mérida might be designated the first American Capital of Culture for the year 2000 by the organization known as the Organization for the Promotion of the American Capital of Culture, with a view to promoting the city of Mérida worldwide. The letter also stated that the abovementioned Association was claiming that it had the endorsement of the OAS, which earned them trust and confidence, but that the Association did not indicate at the time that the award would cost Mérida US$425,000. 8. On May 23, 2001, the Chef de Cabinet of the Secretary General sent a letter to Deputy Sosa Lara stating that in December 1998 the General Secretariat had indeed signed an Agreement of Cooperation of a general character with the abovementioned Association and adding that the Secretariat would study the situation that had arisen and decide whether or not it was desirable to maintain the relationship of cooperation that had been agreed upon with the abovementioned Association. 9. The Office of Cultural Affairs obtained from the President of the Association, Mr. Xavier Tudela, a copy of the documentation which the Association sends to cities interested in competing for the title of American Capital of Culture; a copy of the agreement which the city is required to sign with the CAC once it has been selected, and the Management Report No.1 of the American Capital of Culture Mérida 2000, corresponding to the period of October 12 to December 20, 1999. 3 10. The Department of General Services studied all the available documentation and made the following observations: Apparently, the first information package which CAC sends to cities to invite their candidacies for the title of American Capital of Culture is an informational document which contains no mention of the cost. (See Annex D). The main points in this informational document are item 6, entitled “Application Form”, in which the candidate city is requested to establish an Organising Committee for the activities which it intends to organise if selected and to list the activities that it plans to organize; item 7, entitled “Timetable for the submission of candidacies for the period 2000 – 2004”, in which June 1999 was given as the deadline for applying and October 1999 as the date for selecting the cities that would be the American Capital of Culture in the years 2000-2004, respectively; and item 8, entitled “Jury and nomination”, which states that the American Capital of Culture will be selected from among all the candidacies submitted, on the dates mentioned under item 7, by persons of recognized international prestige. It adds that once the jury has selected from among all the candidacies the city to be the American Capital of Culture, the President of the Association and the highest municipal authority of the city “will sign an agreement under which the title of American Capital of Culture would be officially bestowed on the selected city for a period of one year”. The Model Agreement which CAC sends to the city selected as the American Capital of Culture before officially awarding the city this title, which must be signed by the Association and by the selected city (See Annex E), contains an Annex 1 which contains three contractual clauses, clause (a) of which states as follows2: (a) will pay to the International Non-Governmental Organization of the American Capital of Culture the amount of $425,000 (four hundred and twenty-five thousand American dollars) as compensation for the services rendered by the International NonGovernmental Organization of the American Capital of Culture. This amount will be paid during the month of January of the year - . The model Agreement mentions the types of services which the Association would provide to the winning city in order to promote it but does not specify the approximate number of events of each type that it undertakes to organise nor does it offer a breakdown of the cost of managing each event. 2 The text submitted to this Department is in English and is therefore reproduced here in the language in which it was received. 4 In the documentation which the Association sends to the cities, there are two references to the sponsorship by the OAS. 11. Based on this background information, the Office of the Secretary General concluded that it was not the role of the General Secretariat to sponsor an entity which, even though registered as a not-for-profit international non-governmental organization, charged cities of member States selected as winners a large sum of money as compensation for its services, which, moreover, were not clearly specified. The decision of the Office of the General Secretariat in no way implies a judgment on the manner in which the cities of any of the member States of the OAS may decide to conduct its relations with the Association. Nor has the Office of the Secretary General questioned the legality of the activities of the Association. It has only expressed an opinion on the desirability for the General Secretariat, through an Agreement of Cooperation, to be endorsing the commercial activities of an international entity, which is alleged to be using the name of the OAS to promote and sell its services. On that basis, the Chef de Cabinet of the Secretary General, on May 24, 2001 sent a note to the President of the Association, Mr. Xavier Tudela, stating that the General Secretariat was not in a position to continue the cooperation agreement with the Association for the Promotion of the American Capital of Culture. The note stated that, in accordance with the provisions of ArticleX.10.3 of the Agreement, the General Secretariat was terminating the Agreement with effect from August 24, 2001. 5