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2. WORLD FOOD AND AGRICULTURE SITUATION (a) Shortage of Exchange The Conference — Recommends that the Council of FAO should be requested to examine the problem and to take appropriate action with competent intergovernmental organizations for its consideration. (b) Optimum Utilization of Food The Conference — Recommends that member nations should take immediate steps (1) To strengthen measures for the collection, distribution, and conservation of food supplies so as to ensure the maximum quantity being made available for direct human consumption ; (2) To reduce to the minimum in both exporting and importing countries the feeding to livestock of grains suitable for human use ; (3) To maintain high extraction rates in deficit countries and examine the possibility of raising extraction rates in surplus producing countries; (4) To ensure that the greatest possible proportion of the milk output is utilized for human consumption instead of animal feeding; (5) To increase as far as practicable the export of feedingstuffs to those importing countries which have a livestock population substantially below their prewar level. (c) International Allocations The Conference — Recommends — (1) That the emergency international allocation now being operated under lEFC should continue so long as the products concerned are in short supply ; (2) That, for the period during which allocation continues to be necessary, member nations should keep in force adequate legislation and administrative machinery for the control of exports and imports of the products concerned; (3) That the governments members of lEFC dissolve that body with a view to its incorporation into FAO by the end of 1947, under such conditions as may be agreed; (4) That the functions of the Council and of the Central Committee of lEFC be transferred to the Council of FAO; (5) That the Commodity Committees of lEFC be continued in existence with their present functions as international emergency committees ; (6) That when the transfer takes place, member governments who are members of lEFC continue their undertakings to one another in this regard and that other member governments consider joining in these undertakings.