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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. I 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.
(See Assistance programs; Relief.)
Allied Control Commissions. (See Austria, Germany, Italy, Japan.)
Arab refugees. (See Palestine.)
Armaments, regulation and limitation of (see also Atomic energy; Ger-
Armistices. (See Bulgaria, Hungary, Rumania.)
Arms census - -
Assistance programs, foreign (see also Relief):
2, 197, 1136-1143
Atomic energy, international control of (see also Armaments; United
Nations, Atomic Energy Commission):
Reports of Atomic Energy Commission_
71, 917, 1076-78, 1079-1135
1079-87, 1093-1107, 1131-1135
U.S. S. R. proposals for-
United States proposals for.
85-86, 97-97, 103-104, 106-108, 112-113, 571-572, 622-623
Aviation. (See International Civil Aviation Organization.)
Bank. (See International Bank for Reconstruction and Development.)
34-50, 55-56, 76, 523, 920-921,
Bogotá Conference of American States.
Declaration of war with.
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).
31, 45, 757
54-58, 59, 67,
Permanent Joint Board of Defense. (See Canada, defense.)
691, 706, 710-711, 712, 717, 720, 722, 724
7, 8, 22, 34, 63–64, 70–71, 691-727, 918
719, 720, 727
Conferences. (See Countries; Special subject matter listings.)
Council of Foreign Ministers.
27-34, 35, 54,
31, 102, 527, 546
Danube, freedom of navigation on
75, 88, 95-96, 493, 804–808
Disarmament. (See Armaments.)
Displaced persons (see also International Refugee Organization; Palestine,
Dodecanese Islands. (See Greece.)
85-86, 531, 555, 1215–1224
Economic Cooperation Administration. (See European recovery pro-
Economic development (see also technical assistance)-
Education. (See United Nations Educational, Scientific, and Cultural
Allocation to United Kingdom..
Communist opposition to..
Harvard address of Secretary Marshall..
110, 450, 909, 946
France (see also special subject matter headings):
Agreements with the United States...
Committee of National Liberation...
Reconstruction (see also Assistance programs, foreign).
Fulbright Act. (See United States, informational and educational ac-
Fund. (See International Monetary Fund.)
97-106, 541-551, 621-623
Boundaries (see also Poland, western boundary of).... 107, 568-569, 572, 577
Declaration of war with....
108, 114, 524
Demilitarization. 36, 38, 76-77, 83-84, 103, 502, 507-509, 523, 551, 552
Dismantling (see also Reparations)
Federal Republic of--
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
(See Germany, economic integration.)
Gold, restitution of..
Level of industry--
Limitations on industry.
Navy and merchant marine....
Peace settlement with____
Occupation policy (see also other subject headings under Germany) 36-42,
Relationship to European recovery program
Relationship to North Atlantic Treaty.
506-527, 552-562, 578-579, 585–590
32-33, 38-40, 101, 108-109, 523, 556, 572-573, 920, 971-1012
527, 548-550, 563, 575, 576, 579-581, 585, 590-603, 609