The United Nations Economic and Social Council, upon the initiative of the Government of Chile, in a unanimous resolution requests the Secretary-General to appoint a Group of Eminent Persons to study the role of transnational corporations (TNCs) and their impact on the development process, especially in developing countries, as well as their implications for international relations [resolution 1721 (LIII).]

The Group of Eminent Persons holds meetings, hears witnesses and issues a report entitled The Impact of Multinational Corporations on Development and on International Relations (United Nations publication, Sales No. E.74.II.A.5) recommending the creation of a permanent commission composed of individuals with a profound understanding of the issues involved, and the organization of an information and research centre within the United Nations Secretariat. As background document for the Group, the Department of Economic and Social Affairs had prepared Multinational Corporations in World Development(United Nations publication, Sales No. E.73.II.A.11).

The Council expresses appreciation for the report of the Group of Eminent Persons, endorsed by the Secretary-General, and unanimously decides in principle to establish appropriate permanent machinery to assist the Council in dealing with the full range of issues related to transnational corporations. It also decides to establish an information and research centre and asks the Secretary-General to set up a nucleus of the Centre [resolution 1908 (LVII)].

The Council establishes the intergovernmental Commission on Transnational Corporations as an advisory body and specifies the functions of the Commission as well as the terms of reference of the Centre [resolution 1913 (LVII)].

First session of the Commission on Transnational Corporations in New York. Documents on the views of States regarding the report of the Group of Eminent Persons, on the activities of the United Nations system related to TNCs and proposals for initial work programme are presented by the nucleus Centre. Negotiations lead to a consensus on a broad, preliminary programme of work. A few areas of disagreement appear in brackets in the report (E/5655); areas of concern to various groups of countries are annexed to the report.

The Council adopts resolution 1961 (LIX) requesting the Secretary-General to establish joint liaison and support units between the Centre on Transnational Corporations and the regional commissions of Latin America, Africa, Asia and the Pacific, Western Asia and Europe .

Centre on Transnational Corporations begins operations upon the assumption of office by Klaus A. Sahlgren as Executive Director.