Conference files, lot 60 D 627, CF 348

Memorandum for the Record by the Counselor of the Department of State (MacArthur)1

secret
SEAP D–9

The Secretary approved the attached position paper as general guidance to the US Working Group pending his arrival in Manila. He expressed the view that it would not be useful to develop a formal economic organization within the framework of the collective security organization which will result from the proposed Treaty. He added, however, that this would not exclude the possibility of adding “a few more words to the existing US draft of Article 3 to embellish it a little”.

[Attachment]

U.S. Position on Economic Cooperation at the Manila Conference

1.
The U.S., as its actions have testified, is keenly aware of the importance of improving economic conditions in the Far East and South Asia. The U.S. has undertaken various programs and made substantial contributions toward this end.
2.
For this reason the U.S. has proposed Article III which gives recognition to the importance of economic cooperation and which would permit developments in that direction.
3.
The economic problems of free Asia involve relations between all the countries of the area as well as relations with countries of the West. Some of the countries which are most important in the economic fabric of the area are not participants at the Manila Conference.
4.
The U.S. in general does not believe there should be an undue proliferation of international organizations dealing with the economic problems of the area.
5.
For the reasons outlined in 3 and 4 above, the U.S. does not believe it would be useful to develop a formal economic organization [Page 794] within the framework of the collective security organization which will result from this treaty.
6.
The U.S. will, however, continue to actively pursue discussion of economic problems and the possibility of economic cooperation at such opportunities as may occur. The meeting of the Colombo Plan countries at Ottawa, for example, will obviously provide one such opportunity.
  1. Attached to a covering note of Aug. 26 by Trulock, not printed.