Statement Issued by the Department of State, December 1, 1949, Regarding Policy on Elimination of Cartel and Other Private Restrictions on International Trade
One aspect of this government’s foreign economic policy is the elimination of cartel and other private restrictions on the growth of international trade. When the International Trade Organization is created, we will have an international mechanism for dealing with these practices, as provided in chapter V of its charter.
At the present time, we are much concerned that the growth of such private arrangements may hamper the program for European recovery. Our program in Europe seeks to establish a higher standard of living and viability of the European economy. These objectives, we feel, can be gained only by increased efficiency and productivity of European industry, stimulated by the creation of a broader competitive market. They cannot be attained if private restrictive arrangements to fix prices, divide territories of sale, or limit production simply replace government barriers such as quotas and tariffs. In addition, cartel arrangements, by preventing sales by European firms to hard-currency areas, can interfere with efforts to overcome the dollar deficiencies of the participating countries.
The ECA bilateral treaties with the Western European countries participating in the Recovery Program contain provisions for mutual attack on this problem. In line with these provisions, we are assisting the participating countries at every opportunity in taking action to remove these barriers.
The decartelization program in Western Germany is an important element in this aspect of achieving general European recovery. The United States High Commissioner is pressing for vigorous implementation of this program, and the West German Republic has given its commitment to the Allied High Commission to take action in this field.
[Page 455]In Japan, where economic recovery is also of major importance, it is clearly our policy to eliminate and prevent the reestablishment of restrictive practices and the monopolistic combines with which one is familiar. Competition, spur to efficiency, is the catalyst of economic recovery there as in Europe.