160. Telegram From the Ambassador in Argentina (Beaulac) to the Department of State1

Soaec 60. Committee III completed work August 30. Approved eight resolutions and decided no action warranted Bolivian proposal for legal measures assure certain immunities for assets of governmental banks in foreign countries because juridical nature that question.

Six resolutions approved unanimously. USDel especially pleased with Committee proceedings concerning surplus disposal programs and resulting resolution which recommends orderly procedure not unduly disturbing prices; countries continue mutual timely and effective consultation; and a continued attempt channel production to avoid creation and chronic accumulation surpluses. Satisfactory outcome surplus disposal discussion particularly gratifying because achieved without acrimony. Argentine representatives very helpful.

Greatest difficulty, as expected, developed in discussions fluctuations commodity prices, terms trade and international price stabilization. Debate finally produced two resolutions one of which was acceptable to US. This recommends IA/ECOSOC create permanent Committee on basic products for following purposes (a) study market factors; (b) study possible impact common European market; (c) submit results studies to interested countries; and (d) recommend when circumstances warrant meeting of governmental experts on production and marketing of products.

Other unanimously approved recommendations are: (a) Costa Rican proposal recommending IA/ECOSOC make preliminary study organization and operation of national agencies having programs agricultural products in member States and report findings to member governments; USDel doubts project has much value but considered inadvisable stand alone in opposition since study not harmful [Page 550] and US readily able furnish information its programs. (b) Mexican proposal urging all American States not members Paris Union Convention2 to adhere. (c) Proposal by Ecuador recommending regional center research diseases cocoa and banana and recommending Special Committee on Bananas continue work. (d) Proposal by Paraguay recommending member countries create zonal commissions study markets for common exports and advisable measures promoting exports and preventing deterioration in terms of trade.

US made reservations in Committee on two resolutions: One on “Terms of Trade” was approved by Committee on August 23, US not voting because English text not then available and translation in meeting made recommendation seem routine. Subsequent receipt and examination English text disclosed problem in wording one consideration as stated. US reopened question and proposed substitute sentence to avoid implication administrative determination of prices justifiable on grounds of equity. US proposal failed adoption by vote 7–9 with Mexico leading opposition. Outcome, therefore, resolution approved by Committee as originally submitted but US reserved position on text one stated consideration. USDel preparing statement for plenary explaining objections that part of text, although voting in favor of the recommendation that IA/ECOSOC determine and publish indices terms of trade.3

USDel objected another resolution, “Studies on Cooperative Measures for Stabilization Purposes,” reserving position for statement in plenary. This resolution refers in preamble to interest in possibility of international credit scheme outlined by Chile which would have compensatory features in relation normal prices as determined by participating governments. Resolution recommends that proposed Committee on Basic Products in cases of special problems study measures for reaching commodity agreements and make recommendations to governments through IA/ECOSOC. Negative position taken by US in committee will be carried through by voting against this resolution in Plenary.4

Beaulac
  1. Source: Department of State, Central Files, 365/8–3157. Official Use Only. Pouched to Washington.
  2. Reference is to the Convention of Union of Paris of March 20, 1883, as revised, for the protection of industrial property (frequently referred to as the International Convention of Paris for the Protection of Industrial Property); for text, see 53 Stat. 1748.
  3. For text of the delegation’s statement concerning Resolution XXXI, “Terms of Trade”, see Economic Conference: USDel Report, p. 79.
  4. For text of the delegation’s statement concerning Resolution XXXIV, “Studies on International Cooperation Measures for Purposes of Stabilization”, see ibid., p. 78.