All countries concerned with the program should work together to bring about conditions favorable to the flow of private capital. To this end we are negotiating agreements with other countries to protect the American investor from unwarranted or discriminatory treatment under the laws of the country in which he makes his investment. In negotiating such treaties we do not, of course, ask privileges for American capital greater than those granted to other investors in underdeveloped countries or greater than we ourselves grant in this country. We believe that American enterprise should not waste local resources, should provide adequate wages and working conditions for local labor, and should bear an equitable share of the burden of local taxes. At the same time, we believe that investors will send their capital abroad on an increasing scale only if they are given assurance against risk of loss through expropriation without compensation, unfair or discriminatory treatment, destruction through war or rebellion, or the inability to convert their earnings into dollars. Although our investment treaties will be directed at mitigating such risks, they cannot eliminate them entirely. With the best will in the world a foreign country, particularly an underdeveloped country, may not be able to obtain the dollar exchange necessary for the prompt remittance of earnings on dollar capital. Damage or loss resulting from internal and international violence may be beyond the power of our treaty signatories to control. Many of these conditions of instability in underdeveloped areas which deter foreign investment are themselves a consequence of the lack of economic development which only foreign investment can cure. Therefore, to wait until stable conditions are assured before encouraging the outflow of capital to underdeveloped areas would defer the attainment of our objectives indefinitely. It is necessary to take vigorous action now to break out of this vicious circle. Since the development of underdeveloped economic areas is of major importance in our foreign policy, it is appropriate to use the resources of the government to accelerate private efforts toward that end. recommend, therefore, that the Export-Import Bank be authorized to guarantee United States private capital, invested in productive enterprises abroad which contribute to economic development in underdeveloped areas, against the risks peculiar to those investments. This guarantee activity will at the outset be largely experimental. Some investments may require only a guarantee against the danger of inconvertibility, others may need protection against the danger of expropriation and other dangers as well. It is impossible at this time to write a standard guarantee. The Bank will, of course, be able to require the payment of premiums for such protection, but there is no way now to determine what premium rates will be most appropriate in the long run. Only experience can provide answers to these questions. The Bank has sufficient resources at the present time to begin the guarantee program and to carry on its lending activities as well without any increase in its authorized funds. If the demand for guarantees should prove large, and lending activities continue on the scale expected, it will be necessary to request the Congress at a later date to increase the authorized funds of the Bank. The enactment of these two legislative proposals, the first pertaining to technical assistance and the second to the encouragement of foreign investment, will constitute a national endorsement of a program of major importance in our efforts for world peace and economic stability. Nevertheless, these measures are only the first steps. We are here embarking on a venture that extends far into the future. We are at the beginning of a rising curve of activity, private, governmental, and international, that will continue for many years to come. It is all the more important, therefore, that we start promptly. In the economically underdeveloped areas of the world today there are new creative energies. We look forward to the time when these countries will be stronger and more independent than they are now, and yet more closely bound to us and to other nations by ties of friendship and commerce, and by kindred ideals. On the other hand, unless we aid the newly awakened spirit in these peoples to find the course of fruitful development, they may fall under the control of those whose philosophy is hostile to human freedom, thereby prolonging the unsettled state of the world and postponing the achievement of permanent peace. Before the peoples of these areas we hold out the promise of a better future through the democratic way of life. It is vital that we move quickly to bring the meaning of that promise home to them in their daily lives. THE WHITE HOUSE, June 24, 1949. HARRY S. TRUMAN 313. TECHNICAL ASSISTANCE Resolution of the General Assembly, November 16, 19491 THE GENERAL ASSEMBLY, HAVING CONSIDERED the Economic and Social Council's resolution 222 (IX) A of 15 August 1949 on an expanded program of technical assistance for economic development, 1. APPROVED the observations and guiding principles set out in Annex I of that resolution and the arrangements made by the Council for the administration of the program; 2. NOTES the decision of the Council to call a Technical Assistance Conference to be convened by the Secretary-General in accordance with the terms of paragraphs 12 and 13 of the Council resolution; 3. AUTHORIZES the Secretary-General to set up a special account for technical assistance for economic development, to be available to those organizations which participate in the expanded program of technical assistance and which accept the observations and guiding principles set out in Annex I of the Council resolution and the arrangements made by the Council for the administration of the program; 4. APPROVES the recommendations of the Council to Governments participating in the Technical Assistance Conference regarding financial arrangements for administering contributions, and authorizes the Secretary-General to fulfill the responsibilities assigned to him in this connection; 5. INVITES all Governments to make as large voluntary contributions as possible to the special account for technical assistance. 1 General Assembly Roundup, Fourth Regular Session, Press Release GA/600, Part III, pp. 1-2. SUMMARY INDEX A Aid. (See Assistance programs; Relief.) Albania.. Allied Control Commissions. (See Austria, Germany, Italy, Japan.) Arab refugees. (See Palestine.) Page 756-757 Armaments, regulation and limitation of (see also Atomic energy; Ger- Armistices. (See Bulgaria, Hungary, Rumania.) Arms census_ Atlantic Charter. 2, 197, 1136-1143 1141-1143 712-715 1270-1283 1252-1267 1270-1283 1239–1242 679-862 Atomic energy, international control of (see also Armaments; United Nations, Atomic Energy Commission): Reports of Atomic Energy Commission_ United States proposals for.......... Austria: 1079-87, 1093-1107, 1131-1135 85-86, 97-97, 103-104, 106-108, 112-113, 571-572, 622-623 Aviation. (See International Civil Aviation Organization.) B Bank. (See International Bank for Reconstruction and Development.) 34-50, 55-56, 76, 523, 920-921, 923, 926, 928, 929, 931, 992-993, 1175-1176, 1198-1201 Bogotá Conference of American States... 418, 427-445 (See International Bank for Reconstruction Bulgaria: Armistice with. Declaration of war with. 482-485 54, 64-65, 68-69, 927-929, 1159-1161, 1165–1167, 1170, 1171–1172, 1173–1175, 1176–1183 Peace treaty with (see also Peace treaties, general). Page 486 31, 45, 757 54-58, 59, 67, C Cairo Conference. Canada: Defense, joint_ Permanent Joint Board of Defense. (See Canada, defense.) Caribbean: Commission. Disturbances in.. Cartels. (See Germany, Japan.) Chapultepec, Act of China: 22 685-687, 689 687-691 1039-1047 448 6-7 414-417 United States assistance to. 697-698, 712-715, 718, 721, 724-725, 728, 1359 Conferences. (See Countries; Special subject matter listings.) Connally Resolution Council of Foreign Ministers. (See Foreign Ministers, Council of). 703-713, 723 14 27-34, 35, 54, Curzon line.. Ꭰ 31, 102, 527, 546 Danube, freedom of navigation on Disarmament. (See Armaments.) Displaced persons (see also International Refugee Organization; Palestine, 85-86, 531, 555, 1215-1224 Dodecanese Islands. (See Greece.) E Economic Cooperation Administration. (See European recovery pro- 450-453 Economic development (see also technical assistance). 728-735 8 729-730 (See United States, informational and educational ac- Formosa. (See China.) Four freedoms--- France (see also special subject matter headings): Agreements with the United States... Committee of National Liberation.. Reconstruction (see also Assistance programs, foreign). Fulbright Act. Fulbright resolution_... Fund. (See International Monetary Fund.) 9 Boundaries (see also Poland, western boundary of). 107, 568-569, 572, 577 Currency reform. Declaration of war with.... 38, 559 108, 114, 524 Demilitarization... 36, 38, 76-77, 83-84, 103, 502, 507-509, 523, 551, 552 Democratization of Denazification---- Dismantling (see also Reparations). Dismemberment__. Economic integration_ Federal Republic of.. Foreign trade___ 541-543 32, 38-40, 556, 1010-1012 85, 100, 108, 111-112, 113-114, 523-524, 528-541, 557-558, 571, 573, 575, 577, 588-590 586-588, 609-610 (See Germany, economic integration.) Level of industry. Limitations on industry. Navy and merchant marine_ 987-989 557, Peace settlement with___. Occupation policy (see also other subject headings under Germany) 36-42, 506-527, 552-562, 578-579, 585-590 Relationship to European recovery program. Relationship to North Atlantic Treaty 574-575, 1350, 1354 32-33, 38-40, 101, 108-109, 523, 556, 572–573, 920, 971-1012 Ruhr, control of... Saar.. 527, 548-550, 563, 575, 576, 579-581, 585, 590-603, 609 |