710.J/4–2948: Telegram
The Ambassador in Colombia (Beaulac) to the Secretary of State
Delbog 136. Daily Report No. 23 (for April 27 and 28).
- 1.
- Economic matters: Major debate full committee has centered around article 21 economic agreement re prompt, adequate and effective compensation for expropriation. Mexico renewed attack on article as conflicting with national constitutions. Joined by Ecuador, Guatemala, Panama, Venezuela. US, after agreeing to attempt by Mexico to compromise which, however, was not generally supported, adhered to position that working group text of article is indispensable minimum for treaty. Intimated that without satisfactory article US could not agree to treaty form. US supported by Brazil, Chile, Colombia, Nicaragua, Peru, Salvador. Qualified support from Argentina, Cuba, Uruguay.
- Mexican proposal to delete reference to prompt, adequate and effective compensation, defeated 5 to 14. Cuban amendment to provide for such compensation “in accordance with respective constitution” defeated 9 to 10. Text of article substantially as introduced by USDel finally approved 14 to 5. However, expect that opposing states will make reservations or clarification re their constitutional positions.
- Committee also approved satisfactory texts rest of chapter IV (private investments) except amendment to article on double taxation to be voted Thursday, and except for defeat on attempt to obtain binding commitment on employment of foreign technical and managerial personnel.
- Committee also approved acceptable text chapter VII (Maritime transportation) and separate chapter on freedom of transit. Haitian resolution declaring that any increase in freight rates constituted discrimination and that steamship lines should give 30 days notice of any contemplated increase, defeated by 9 to 9, and subsequently referred to economic reference.
- 2.
- Pacific settlement: Full text treaty Pacific settlement approved by committee. Includes unobjectionable provisions relating to good offices, mediation, conciliation, arbitration. Judicial settlement chapter similar to that previously reported with compulsory reference all cases ICJ and compulsory arbitration all these cases court decides not to be within its competence. Chapters on mediation, conciliation and arbitration generally similar to juridical committee draft, with new provisions re arbitration procedure.
Committee also approved article to effect that aliens entitled no greater protection than nationals, provided local courts available. US opposed and will enter reservation.
Committee approved brief pacific settlement chapter of Organic Pact, containing list pacific settlement procedures, obligation to agree on a procedure, obligation to employ such procedures before reference any controversy to UN, and referring to separate treaty as assurance that all disputes will be settled within reasonable time. Procedure consultation in pacific settlement matters, even for recommending methods of settlement, abandoned completely.