710.J/4–2348: Telegram
The Ambassador in Colombia ( Beaulac ) to the Acting Secretary of State
Delbog 111. Daily Report No. 19.
- (1).
- Nicaraguan Costa Rican situation: Steering Committee unanimously approved report special committee that, taking into account fact that conference Secretary General had received no official information and that chairman Costa Rican and Nicaraguan delegations clarified situation considerably in statements yesterday, committee believed “that up to now there is no reason or basis for conference to take cognizance of matter. Notwithstanding, since continental public opinion has been awakened by press despatches, committee believes that principle of non-intervention, fundamental standard of IA community, should on this occasion be reaffirmed in all its completeness.”
- (2).
- Defense democracy: Steering Committee unanimously approved resolution (text transmitted Delbog 1121) drafted by working group on basis joint proposal submitted yesterday by US, Chile, Peru, Brazil (Delbog 1082).
- (3).
- European colonies: Steering Committee approved text resolution presented by working group (text transmitted Delbog 1133) whereas clauses and declaration approved by affirmative vote 18 with US, Brazil, Dominican Republic abstaining. Operative portion approved by affirmative vote 17, with US, Brazil, Dominican Republic and Chile abstaining. Chile expressed view that proposed commission would serve no practical purpose or achieve affirmative results.
- (4).
- Organic Pact: Steering Committee unanimously approved Mexican proposal inclusion in Pact brief chapters economic cooperation, cultural cooperation and social guarantees. Working committees to prepare texts on basis Mexican draft.
- Following articles re specialized organizations approved
subcommittee committee II–B:
Article A. For purposes this pact IA specialized organizations shall be those inter-governmental organizations, established by multilateral agreements, with specific functions in technical matters of common interest for American states.
Article B. Council shall maintain register of specialized organizations for purposes envisaged Article 38.
Article C. Specialized organizations enjoy fullest technical autonomy and shall take into account recommendations of council in accordance provisions present chapter.
[Page 59]Article D. Specialized organizations shall send to council periodic reports concerning development activities, their budgets and annual quotas.
Article E. Council may enter into agreements with specialized organizations to determine relations between respective organization and organization.
Article F. Specialized organizations should establish cooperative relations with world agencies of same character to coordinate their activities. Upon entering into agreements with international agencies of world-wide character, IA specialized organizations should maintain identity and position as integral parts organization, even when carrying out regional functions of international agencies.
Article G. In determining geographic location of specialized organizations, interests of all American states shall be taken into account.
- (5).
- Rights duties states: Working group committee IA approved four noncontroversial articles inclusion chapter on principles. Considerable sentiment development for following principle “American states condemn war. Victory does not create rights.” Argentina stated under explicit instructions insists on second sentence.
- (6).
- Economic matters: Steering Committee decided by 11 votes, US not voting, discuss tomorrow Cuban proposal for following article economic agreement: “No American state may unilaterally apply coercive economic measures which constitutes reprisal or tend force sovereign will of state against which applied”.
In working group on private investments (Chapter IV) Mexico, Venezuela, Guatemala continued firm resistance to US position on Article 21 regarding expropriation. Colombia reiterated full support for US. Nicaragua proposed compromise which would terminate Article 21 after words “property rights of nationals” and revise Article 22 to provide prompt negotiation bilateral agreements providing guarantees private investment including reference expropriation. USDel divided opinion strategy whether should press issue, withdraw article entirely or accept compromise. Delegation leaders believe fifty-fifty is best we might get if issue pressed to vote and concerned over impacts such record vote might have on confidence American business in dissenting countries.
Same three countries refuse accept Article 19 B regarding employment foreigners.
Otherwise general agreement Articles 18 and 23 a with weak treatment 19 a subparagraphs A and B having been disapproved.
Agreement in principle in Committee IV working group was reached on Articles 24–25 substantially along lines of US redrafts, with addition of reference to existing industries as well as those to be developed and statement that when export quotas are applied they should conform as closely as possible to distribution that would obtain in absence of controls. Principal controversy developed over inclusion [Page 60] of positive obligation to facilitate acquisition of materials needed for economic development. Agreement reached to state this as an objective of national effort, rather than as an obligation. Articles referred to drafting group (US not member).
In working group on Chapter II (economic organisms) following strong statement by Chile and US Committee dropped further consideration of IA Bank. Agreed, Chile abstaining, on resolution asking IA–ECOSOC to study further the possibility and desirability of a bank, and report to special economic conference. Committee also agreed on principle of adding technical unit to staff PAU for study economic development projects rather than special development organization. Most US amendments to Articles 8 and 10 to 14 seemed generally acceptable. Chapter II sent to Drafting Committee (US not a member).
In working group on shipping Ecuador refusal eliminate consular invoice preferences Gran Colombiana would have nullified benefits of already modified Article 28. This and all other articles Chapter VII then eliminated except Articles 27 and 30 (with US amendment) group then agreed write in Article 1B of Geneva Shipping Convention.