\fd\fd \fl 30

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annual
report
1972

CENTRO INTERNACIONAL DE LA PAPA

APARTADO 5969, LIMA,PERU
CABLES CIPAPA

TECHNICAL STAFF OF CIP

Richard L. Sawyer
Juan S. Aguilar
David K. Baumann
Carlos Bohl P.
James E. Bryan
Javier Franco P.
E. R. French
Oscar R. Gil
Z6simo Huaman
Michael Jackson
Rosa A. Mendez
John Niederhauser
Luis F. Salazar
Maria M. de Scurrah
Maurie Semel
Marco Soto P.
Luis A. Valencia
John C. Vessey
Rainer Zachmann

General Director
Horticulturist
Agronomist
Executive Officer
Seed Specialist
Nematologist
Bacteriologist
Head, Pathology Dept.
Controller
Fellow in Taxonomy
Fellow in Taxonomy
Pathologist
Director of Outreach
Virologist
Breeder-Nematologist
Visiting Entomologist
Breeder, Post-doctoral
Entomologist
Pathologist, Post-doctoral
Mycologist

C I P ANNUAL REPORT FOR 1972

Richard L. Sawyer
CIP received its first funding development of pro. gram in 19720 This was the first of a three year program for development of facilities, staffing of positions
and initiating the projects essential for potato improvement in developing countrieso
Towards a 1972 budget of $836,000, CIP received
$572,000 from donors0 Of this approximately $130,000 was
already mortgaged for a continuation of the CIP regional
program in Mexico, (formerly The Rockefeller International Potato Program)o Most of the funding received, was not
made available until close to the middle of the year
which caused activities to be concentrated during the
final monthsc
With the short funding, adjustments had to be made
in relation to what was expected to be accomplished with
the accepted budget in 1972.
There was a concentration
in the construction of the basic essential facilities and
the ordering of basic essential equipmento The staffing
of positions expected to take place in early 1972 were d~
layed until late in the yearo Work was started in anticipation of money and before the money was available in r~
search contracts with Institutions where facilities and

- 2 -

capabilities already existed to start tapping the genetic resources for potato improvemento CIP made extensive
use of the National research facilities in Pathology and
Nematology at the La Molina Experiment Station of the
Peruvian Ministry of Agriculture during 1972 and is continuing to do so in early 1973 until its own facilities
are ready and equipment installed. With such adjustments the major development of CIP's program is expected
to take place in the three year period of 1972 through
1974 as planned.
During 1972, in accordance with CIP Statutes, the
Consultative Group for Agricultural Research made reco!!l
mendations for three nominations to Board of Trustee P.Q.
sitionse These were accepted by the present Board and
the nominations were made and accepted. The three Board
members are:
- Dr. Ir. Ge de Bakker
General Director of Agricultural
Research, Ministry of Agriculture
and Fisheries
The Netherlands
- Dr. B~rge Jacobsen
Head, National Potato Program
Denmark

- 3 -

- Oro E. Ro Keller
Professor of Plant Breeding & Head
of the Plant Breeding Dept., Federal
Technical University of Zurich
Switzerland

Dr. Joshi, Director of the Indian Agricultural Re

search Institute, has accepted a position on the Board
of Trustees, subject to the approval of his administrationo The other present Board members are:
- Dr. Jose Valle-Riestra
Head of the Department
of Food Technology, National
Agrarian University
Peru
- Dr. Mariano Segura
General Director of Agricultural
Investigation, Ministry of
Agriculture
Peru
- Mr. Jack Rigney
Dean of International Programs,
North Carolina State University
United States

- 4-

- Mro Colin McClung

Deputy Director General, CIAT
United States
- Dr. Richard Lo Sawyer
Director General, CIP
United States
The 1973 .Core Budget of $ 1,374,000 is being financed by nine donors from the Consultative Group on
International Agricultural Research. Although final legi~
1ative approval is still needed for a few donors and some
of the assignment of money will not be made until the
second quarter of 1973, it appears that the CIP budget
is adequately financed with sufficient flexibility of
funding assignment to allow an oderly development of program in 1973. Funding for the 1973 budget is coming
from the following governments, Canada, Denmark, Germany,
Great Britain, Netherlands, Sweden, Switzerland, the
United States and the Rockefeller Foundation. There apparently will not be the short funding problem in 1973
that there was in 19720

- 5 -

PROGRESS IN CIP DEVELOPMENT IN 1972

Facilities:
The building which was constructed for CIP at the
La Molina location has been developed to office all the
anticipated principal staff in the Core Program and a.E_
proximately 30 support staff scientists. Laboratory
space has been developed and basic installations of furniture made. Only a small amount of work is necessary
to have all laboratories except physiology in use by the
second quarter of 19730 A major portion of the basic
laboratory equipment has been ordered, is starting to
arrive, and is being installed.
Four large screenhouses have been completed. Two
are in use and the second two are awaiting the installation of benches and the implementation of quarantine pr.Q_
cedureso The latter two houses will operate under strict
quarantine in order to be able to freely bring material
into Peru and send material out from Peru. A headhouse
and laboratory for work involving soil, has been completed and is in useo The soil preparation, ster11 ization, pot storage, and pot cleaning area has been
completed and is in use. All of the La Molina facilities
have been enclosed with a wire fence and cement posts to

- 6 -

be able to maintain the strict quarantine procedures ne_

essaryo A house for the security officer has been constructed and is occupied so there is a twenty-four hour
security of operationso
Staffing:
At the start of 1972, there was one Ing. Agr6nomo,
a bilingual secretary, and a principal staff member on
planning money made available by U.So AIDo By the end of
1972, there were twenty-four principal and support staff
personnel working at CIP. Final arrangements had been
completed for five principal scientists with senior experience to join the staff during the first six months
of 1973.
Program:
With its research program CIP is developing prQ_
jects where they can be conducted well and as inexpe.!l
sively as possible without sacrificing quality. Portions
of the research program are conducted through research
contracts with institutions where facilities and capabil
ities already existo A major portion of certain projects
is conducted at locations other than at CIP s central fa
cilities in Peruo Such is the case with late blight research which can be conducted better in Mexico where a
wider range of the causal organism exists than at any
other locationo
1

- 7-

The regional CIP program in Mexico in 1972 included

the testing for field resistance to late blight with
breeding material supplied by a wide range of countries.
This is a continuation of what was formerly The
Rockefeller International Potato Program. In Mexico, CIP
maintains a bank of over 800 late blight resistance
clones and from this bank supplies breeding material for
late blight resistance to interested breeders. Due to
new Mexican quarantine restrictions CIP is facing some
problems for the importation of breeding material for
field testing for late blight resistance.
CIP is
attempting to work these problems out with the Mexican
Government prior to the 1973 planting season.
Just as Mexico is the apparent center of diversity
for the late blight organism so is Peru the apparent
center of diversity for the Golden Nematode and closely
related species which are a major pest in developing
countrieso Consequently, CIP has a program in Peru for
testing breeding materials from countries developing
Golden Nematode resistanceo In the 1972 program, breeding material from Germany and the United States was sent
for screeningo CIP scientists continued their program of
systematically screening material in the CIP germ plasm
banko CIP scientists are trying to determine the variability that exists with the Golden Nematode type species
in Peru. Tester plants have been obtained from Germany
and the United States to help determine differences in

- 8 -

pathqtypeso Collections of nematodes were made in 1972

in the more remote areas of Peru, where the nematode
problem is most severe. Plans have been finalized to
have a senior nematode taxonomist from Rothamsted Expe
riment Station work with CIP scientists for several
months in 1973 to help determine the variability that
exists with Heterodera and allied species in order to
better plan breeding programs for plant resistance.
The germ plasm bank inherited from the Peruvians
when planning money became available from U.S. AID in
1970, contained approximately 1,800 entities of which
some were duplicates and mixturese Considerable progress has been made in clearing up this bank. New collections have been made and the bank now contains
slightly under 4,000 entities. During the 1972 growing season over 1,000 of these were converted to bota!l
ical seed and storedo
CIP is systematically placing
all of the bank in botanical seed for preservation and
disease control while still maintaining the entities
in clonal form for resistance screening work. The International Potato Center provided botanical seed to
five different areas outside of Peru which were, two
U.S. locations, Argentina, Chile and India. Tuber material was provided to twenty-three individual requests from Peruvians for germ plasm material to be
used in breeding and resistance screening work. The
amount of material being multiplied for each entity in

- 9 -

the germ plasm bank was increased during the 1972 season in order to have sufficient material available to
satisfy the increasing number of requests being r~
ceived~
Data is being accumulated on each entity in
the germ plasm bank and the procedures are being esta~
lished to have these documented for computer retrieval. The International Potato Center is involved
in a pilot which includes the United Kingdom collection ancl the U.SoD.A. Sturgeon Bay collection to evaluate TAXIR as a possible retrieval system for world
genetic resourcesa
Several of the junior pathologists joining CIP
late in 1972 have started projects in the following areas of work:
A.

Screening for resistance to the major

viruses of the cultivated potato mainly
X and Y in the CIP germ plasm collection.

B.

Identification of viruses in the germ

plasm collection which are causing a
mosaic and foliar necrosis and have
previously been unidentified. (These
are major projects in South American
seed production programs).

C.

Field resistance to bacterial wilt

(Pseudomonas Solanacearum) in breeding
lines developed from resistant selections.

- 10 -

D.

Search for resistance to wart

(Synchrtrium endobioticum) in the
germ p asm banko

All of these pathology projects are important in

developing countrieso These projects are centered around the utilizati0n of the genetic material that is
available in the germ plasm collection at CIP.
For portions of its research CIP is relying on
linkage projects with institutions where facilities
and capabilities already exist to help solve priority
potato improvement problems in developing countries.
CIP had three research contracts in 1972 to help initj_
ate quickly a program of tapping genetic resources for
developing country needs. Progress with these are dis
cussed in the following paragraphs.
The Cornell linkage project has two major comp.Q_
nents which are: 1) the development of population of
andigena germ plasm useful to potato breeding programs
throughout the world, and 2) the research for resistance to aggressive races of the Golden Nematode and al
lied species and the incorporation of this resistance
into tetraploid cloneso
Identified in this work through 1972 are:
1.
2.

24 clones resistant to potato virus Y.

33 clones identified in Mexico with late
blight resistanceo

- 11 -

3.

37 clones with resistance to root knot

nematodee

In tests for adaptability from the populations de

veloped in the Cornell-CIP program, the material in
1972 was planted in Ithaca, New York, at two ele
vations in Mexico, at two elevations in Colombia, at
a Peruvian highland CIP location, and material is
ready for an early 1973 planting at CIP jungle loca
tion. National breeders from developing countries are
starting to request material from this project to help
them with their breeding programs. Seed from the program was provided to scientists in Argentina, Colom
bia, Ecuador, Mexico, Pakistan, and the Philippines in
1972.
The North Carolina - CIP linkage project has the
following main objectives:
1.
2.

to isolate and identify superior diploid

clones for direct use in both the highland
and lowland tropics and;
to study the adaptation of diploid species
as potential sources of new germ plasm for
commercial exploitation.

Locations presently included in the program are:

a) temperate, long day - North Carolina
b) tropical, short day - CIP jungle location
c) alpine, short day - CIP highland location
Working closely with North Carolina scientists
on this project are potato breeders in the National

- 12 -

Peruvian Programo The cultivated diploids are considered by most potato breeders as a major potential
source of good breeding material that has been relativaly untapped to-date .. The CIP contract is developing this diploid material so that desirable character.
istics are identified for use. 1972 requests for mat~
rial from the CIP - North Carolina program have been
received from as diverse areas as Ethiopia and India,
for use in their potato improvement programs.
The Wisconsin linkage contract for potato improvement has the following objectives:
1.

2.
3.
4.

Increase potato production by use of new

parental material and breeding methods to
develop higher yielding, more widely a
dapted varietieso
Assist CIP in the development of facilities
and procedures for germ plasm maintenance
and evaluation in Latin America,
Use of haploid approach for transferring
valuable germ plasm from wild Solani
species into improved parental clones and
Investigate the genetic and biochemical
system controlling resistance to bacterial wilto

The most used germ plasm bank in the world is as

sociated with the University of Wisconsin. Scientists
working with this bank are helping CIP establish its
procedures for clearing up the present bank and

- 13 -

making material available for breeding programso The

most interesting present break-through in potato improvement with CIP is in association with this proj
ect. Two of the scientist from Wisconsin associated
with the CIP contract are in the final process of e~
tablishing the genetics of inheritance to Pseudomonas
Solanacearum, bacterial wilt. At the CIP workshop on
Bacterial Wilt Resistance in December 1972, a clear
indication of the progress being made in the production of wilt resistance varieties came from potato research scientists in Nigeria, Colombia and Peru. Breed
ing material from the Wisconsin project is being prop!_
gated in all three locations for possible variety naming and release without the need of going through a lo
cal breeding process for adaptati0n to local climates.
There have been eight publications from the Wisconsin
project associated with CIP in 1972"
The regional program of CIP for Mexico in 1972 in
eluded a continuation of the annual training program.
Potato scientists from Chile, Ethiopia, Uganda and
Poland participated in the program in 1972. The Inter:.
national Potato Center held its first annual training
program in Africa in 1972, in cooperation with British
and national scientists involved in potato improvement
in Kenya. The second annual training program in Africa
was conducted in Kenya in January of 1973 with scientists from seven African countries participating. At

- 14 -

the request of the Chilean Government CIP provided

three scientists who participated in a five-week na
tional training program for Chilean potato workers.
CIP has a long-term calendar of events for program development and review and planning. The calendar
started with a symposium held in July of 1972 on "Key
Problems and Potentials for Greater Use of the Potato
in the Developing World".
This symposium helped CIP
make an overall assessment of priorities for potato im
provement in developing countries, established general
levels of status for priority projects, and announced
the development of an International Potato Center to
the scientific community.
Over a hundred scientists
working with potatoes from developing and developed
countries attended. CIP is now in the process of hol.Q.
ing a series of review and planning workshops for all
of its major projects on potato improvement for developing countries. Senior international scientists wor_t
ing in the particular field involved, are brought together to help CIP plan its five year program. A wor_t
shop on Bacterial Wilt Resistance (Pseudomonas
Solanacearum) was held in December of 1972. A taxonomy
workshop for the systematic collection and classification of tuber-bearing solanum in the world was held in
January of 1973. In a three year period all CIP projects will be subjected to such approaches in order to

- 15 -

make sure that the best minds in the world in the particular field of interest are helping determine CIP's
long range program. The results of these workshops are
published and made available to anyone on request. The
results are considered to be CIP's five year plan of
action with the particular project insofar as funds
will permito

Richard L. Sawyer
Director General

11-DG~E:..rno

March, 1973

Price Waterhouse Peat & Co

Pasa;e Santiago Acuna 121- Loma
Correspondencia Apartado 14J4

May 15, 1973.

To the Board of Directors

Centro Internacional de la Papa.
We have examined the balance sheet of Centro Internacional
de la Papa as of December 31, 1972 and the related statement of
income and expenditures for the year as drawn up in Peruvian soles.
Our examination of these statements was made in accordance with
generally accepted auditing standards and accordingly included such
tests of the accounting records and such other auditing procedures
as we considered necessary in the circumstances. It was impracticable to extend the examination of donations received beyond accounting
for amounts so recorded. In our opinion, such Peruvian sol statements
(not included herewith) present fairly the financial position of
Centro Internacional de la Papa at December 31, 1972 and the income
and expenditures for the year) in conformity with accounting practices generally accepted for non-profit organizations.
We have also examined the accompanying financial statements expressed in U.S. dollars. In our opinion, they present a
fair and proper translation of the aforementioned local currency
statements on the bases described in Note 2.

Countersigned by

~~IJ.~~~--------(partner)

J.
ando Patino B.
Peruvi n Public Accountant
Matriculation No. 1245

a.

<ll

ci

PROPERTY AND EQUIPMENT

1.J,655

13,823
6,784

!21

332,930

14<;>,155

192,775

6,255

75,262

25,262

50,000

111,258

!21

Grants used for adquisition of property and

equipment
Excess of expenditures over income

EQUITY

GRANT RECEIVED FROM DONOR TO BE USED IN 1973

Reserve for severance pay

DEFERRED LIABILITIES

Total current liabilities

Bank overdraft
Accounts payable
Accrued expenses

CURRENT LIABILITIES

LIABILITIES AND EQUITY

The accompanying notes to the financial statements are an integral part of this statement.

Total current assets

Prepaid expenses

Agency for International Development

(collected in January, 1973)
Institute of International Education,
advances for remuneration of
scientists
North Carolina State University
Other, including US$2,225 receivable
from personnel

Accounts receivable

Cash

CURRENT ASSETS

ASSETS

AT DECEMBER 31, 1972

BALANCE SHEET

CENTRO INTERNACIONAL DE LA PAPA

140,155

(~)

US$

332,930

139,830

150,000

3,344

39,756

1,18~

12,288
26,283

Qj_

CENTRO INTERNACIONAL DE LA PAPA

STATEMENT OF INCOME AND EXPENDITURES
FOR THE YEAR ENDED DECEMBER 31, 1972

INCOME
Operating grants
Unrestricted
Restricted, received from Rockefeller
Fundation for a program developed
and administered by the Mexican
International Center for Improvement
of' Corn and Wheat
EXPENDITURES
For operations
Potato research program
Pathology
Genetic and breeding
Taxonomy
Nematology
Support
Training and fellowships
Library, documentation and information
services and service operations
Administration expenses
General operating expenses
Program developed and administered by
the Mexican International Center for
Improvement of Corn and Wheat
Pathology
Taxonomy
Training and fellowships
Grants used to acquire property and
equipment
Excess of expenditures over income

410,000

82,000
492,000

~~;~1~

3,737
10,049
14,717

144,312
23,140
5,653
69,197
27,868

26,846
15,050
41,896
40,104

82,000
352_,170
140,155
492,325
325

The accompanying notes to the financial statements are an

integral part of this statement.

CENTRO INTERNACIONAL DE LA PAPA

NOTES TO THE FINANCIAL STATEMENTS
AT DECEMBER 31. 1972

NOTE 1 - FORMATION AND ACTIVITIES

On January 20, 1971 an Agreement for Scientific
Cooperation between the Governmnet of Peru and the North Carolina
State University, United States of America, was signed to establish
in Lima, Peru, through common efforts a non-profit organization of
scientific nature to research with potatoes and tuberous roots.
The agreement is to be in effect for ten years and may be extended,
by mutual agreement, six months prior to its termination date.
The constitution of the Centro Internacional de la
Papa (the Center) was formalized in accordance with the laws of
Peru in June 1972, effective retroactively as of January 20, 1971,
for an indefinite period.

The Center's principal objective is to

contribute to the development of the potato and tuberous roots,

at the national and international level, by carrying out research
programs, preparation and training of scientists, organization of
e-0nferences, forums, seminars and all other activities in accordance
with its objectives.

Activities commenced s 1bstantially in January

1

1972.
In accordance with existing legal dispositions and the
terms of the Agreement described above, the Center is exonerated
from income tax and other taxes.

- 2 -

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies are as follows:
a) Income and expenditures are accounted for on an
accruals basis.

In particular, operating grants are accounted

for in the period indicated by the donor and, when grants are
used abroad, the expenditure is accounted for on the basis of
advices received.
b) Bases of translation
The books and accounts of the Center are maintained

in Peruvian soles.

The financial statements are translated into

U.S. dollars on the following bases: assets and liabilities are

translated to U.S. dollars at year-end exchange rates, except that
property and equipment are translated at rates prevailing when
acquired.

Income and expense items are translated at the prevail-

ing month-end exchange rates, which have remained constant through-

c) Plant and equipment is valued at cost and is not

depreciated.

Depreciation through December 31, 1972 would be

insignificant.
d) Severance pay is accrued in full.

- 3 NOTE 3 - PROPERTY AND EQUIPMENT

Property and equipment comprises:
Cost

USf
Constructions and buildings
Site development and installations
Research equipment
Furniture, fixture and office equipment
Vehicles
Other

46, 395
18,126
17,816
10,414
35, 092
12,312
14q,155

The Agreement described in Note 1 provides that if for

any reason the Center's operations are terminated, all its assets
will pass to the Peruvian Ministry of Agriculture.
IL

NOTE 4 - GRANTS

The statement of income and expenditures for the year

ended December 31, 1972 include$ the following grants:
Donor
International Bank for
Reconstruction and Development
Danish International Development Agency
U.S~ Agency for International
Development

Rodkefeller Foundation

Date paid

Amount

us$

February 18, 1972

160,000

July 12, 1972

150,000

August 28, 1972

January 4, 1973

50,000
50,000
100.1'000
45,000
37,000

March, 1972
July, 1972

82,000
492,000

l)

48.4%
51.6%

48.4%
51.6%

----

393, 165

140, 155

140,155
492L22

67,795
72,360

253,010

351,845

67,795
72,360

82,000

82,000

70,870

100, 140

169,845

100,000

48,468
51,672

Oirect

82,205
87,640

Received
Grants

ZLl9~

--

71,292

15, 157

56,135

27, 169
28,966

Support

Grants for the Year Ended December 31 , 1972

(US Dollar)

27,868

--

27,868

14,019

13,849

6,703
7, 146

i~

--

(325)

( 46)

(279)

(135)
(144)

EXPENSES CHARGED
Uncovered
General
Deficit
Operating

~92,002

140, 155

67,79$
72, 360

351, 845

82,000

100,000

169, 845

82, 205
87,640

Total

The Danish/I DA and the IBRD grants were multi-purpose grants. A portion of each has been arbitrarily reclassified as capital grant to cover these
funding requirements.

Total Grants and Expenses

Total Capital

Danish IDA
IBRD

Capital Grants l)

Total Core

Rockefeller Foundation

Core Operations - Restricted

U.S. AID

Core Operations - Unrestricted

Total

Danish IDA
IBRD

Core Operations - First Class

THE INTERNATIONAL POTATO CENTER

Schedule 1: Funds Provided and Cost of.Individual

THE INTERNATIONAL POTATO CENTER

Schedule 2: Comparative Statement of Actual
Expenses and Approved Budget for the Year Ended December 31, 1972 *
(US Dollar)

Core
First Class
Actual
Approved
Budget
Expenses

Core
Unrestricted
Actual
Approved
Budget
Expenses

Core
Restricted
Approved
Actual
Budget
Expenses

75,510

68,802

41,896

21,082

2,058

40, 104

3,548

10

Support Operations

56, 135

15, 157

General Operation

13,849

14,019

Programs
Research
Potato
Conference & Fellowship
Library Documentation
& Inf. Services

Total

169,845

170, 124

Capital
Research Equipment

17,816

1.nstallations

15,035

Furniture, Fixtures &

Office Equipment

10,414

Vehicles

35,092

Constructions & Buildings

46,395
3,091

Site Development

12,312

Other fixed Assests

Total

100,000

140, 155

140, 155

Analysis of Variances
Deficits:
Carried-over to 1973
Total

279
~10,279

* Includes only amount received from donors toward Core Program approved budget.

100,046