The Secretary of State to Diplomatic Missions in the American Republics 1


Negotiation of a General Point Four Agreement

The Secretary of State transmits herewith a draft of a General Agreement for Technical Cooperation between the United States and countries in which Point Four programs are current or are proposed. Such an instrument would represent the basic agreement of the two governments to engage in a general program of technical cooperation for economic development and would take the form of a formal agreement to be signed between chiefs of diplomatic missions and the Foreign Minister, rather than of a simple exchange of notes. The Department considers that the existence of a general agreement to cover Point Four operations in the host country would offer a number of advantages to both countries.

The agreement would afford a framework into which specific projects and programs can be placed with a minimum of further negotiations and formality. The several determinations required by section 407(c) of P.L. 535, for example, could be made in respect of the country in question mainly if not entirely on the basis of the undertakings in the agreement, thereby eliminating or greatly reducing the need for reconsideration of this problem whenever an individual project is contemplated. Similarly, problems common to all projects and programs such as taxation of United States personnel and immunity of funds, materials, and equipment introduced into the host country by the United States are comprehensively covered. As [Page 871] a result, the arrangements for particular projects and programs, whether by supplemental agreement, exchange of notes, memoranda of understanding, or otherwise, could be made with undivided concentration on the issues and details with which they are involved.

The filing of such an agreement with the Secretariat of the United Nations would meet the registration requirements of section 406 of P.L. 535.

The Department believes that a general agreement of this kind is highly desirable at the beginning of a technical cooperation program envisaged by the Act for International Development unless, in the judgment of the chief of the diplomatic mission, negotiation of such an agreement would entail substantial political difficulties or unless there are other impelling reasons to the contrary. Accordingly, if he encounters no preclusive obstacles of this nature, the chief of mission is authorized to proceed with the negotiation of the general agreement as soon as conversations with the host government have proceeded to the point where it is clear that technical cooperation will be requested. Where the chief of mission concludes that circumstances require projects to be undertaken without prior execution of a general agreement or that changes must be made in the general agreement to make it acceptable to the host government, recommendations to this effect should be submitted to the Department for special consideration.


Point Four General Agreement for Technical Cooperation Between _______ and the United States of America

The Government of the United States of America and the Government of ______.

Have agreed as follows:

article i

Assistance and Cooperation

The Government of the United States of America and the Government of ______ undertake to cooperate with each other in the interchange of technical knowledge and skills and in related activities designed to contribute to the balanced and integrated development of the economic resources and productive capacities of ______. Particular technical cooperation programs and projects will be carried out pursuant to the provisions of such separate written agreements or understandings as may later be reached by the duly designated representatives of ______ and the Technical Cooperation Administration of the United States of America, or by other persons, agencies, or organizations designated by the governments.
The Government of ______ through its duly designated representatives in cooperation with representatives of the Technical Cooperation Administration, or other duly designated representatives of the United States of America, and representatives of appropriate international organizations will endeavor to coordinate and integrate all technical cooperation programs being carried on in ______.
The Government of ______ will cooperate in the mutual exchange of technical knowledge and skills with other countries participating in technical cooperation programs associated with that carried on under this Agreement.
The Government of ______ will endeavor to make effective use of the results of technical projects carried on in ______ in cooperation with the United States of America.
The two governments will, upon the request of either of them, consult with regard to any matter relating to the application of this Agreement to project agreements heretofore or hereafter concluded between them, or to operations or arrangements carried out pursuant to such agreements.

article ii

Information and Publicity

The Government of ———— will communicate to the Government of the United States of America in a form and at intervals to be mutually agreed upon:
Information concerning projects, programs, measures and operations carried on under this Agreement including a statement of the use of funds, materials, equipment, and services provided thereunder;
Information regarding technical assistance which has been or is being requested of other countries or of international organizations.
Not less frequently than once a year, the Governments of ———— and of the United States of America will make public in their respective countries periodic reports on the technical cooperation programs carried on pursuant to this Agreement. Such reports shall include information as to the use of funds, materials, equipment and services.
The Governments of the United States of America and ———— will endeavor to give full publicity to the objectives and progress of the technical cooperation program carried on under this Agreement.

article iii

Program and Project Agreements

The program and project agreements referred to in Article I, Paragraph 1 above will include provisions relating to policies, administrative [Page 873] procedures, the disbursement of and accounting for funds, the contribution of each party to the cost of the program or project, and the furnishing of detailed information of the character set forth in Article II, Paragraph 1 above.
Any funds, materials and equipment introduced into ———— by the Government of the United States of America pursuant to such program and project agreements shall be exempt from taxes, service charges, investment or deposit requirements, and currency controls.
The Government of ———— agrees to bear a fair share of the cost of technical cooperation programs and projects.

article iv


All employees of the Government of the United States of America assigned to duties in ———— in connection with cooperative technical assistance programs and projects and accompanying members of their families shall be exempt from all ———— income taxes and social security taxes with respect to income upon which they are obligated to pay income or social security taxes to the Government of the United States of America, and from property taxes on personal property intended for their own use. Such employees and accompanying members of their families shall receive the same treatment with respect to the payment of customs and import duties on personal effects, equipment and supplies imported into ———— for their own use, as is accorded by the Government of ———— to diplomatic personnel of the United States Embassy in ————.

article v

Entry into Force, Amendment, Duration

This Agreement shall enter into force on the day on which it is signed. It shall remain in force until three months after either government shall have given notice in writing to the other of intention to terminate the Agreement.
If, during the life of this Agreement, either government should consider that there should be an amendment thereof, it shall so notify the other government in writing and the two governments will thereupon consult with a view to agreeing upon the amendment.
Subsidiary project and other agreements and arrangements which may be concluded may remain in force beyond any termination of this Agreement, in accordance with such arrangements as the two governments may make.
This Agreement is complementary to and does not supersede existing agreements between the two governments except insofar as other agreements are inconsistent herewith.
  1. Sent to the Embassies in Guatemala and Argentina for information only.