Foreign Relations of the United States, 1955–1957, American Republics: Multilateral; Mexico; Caribbean, Volume VI

159. Telegram From the Ambassador in Argentina (Beaulac) to the Department of State¹

Buenos Aires, August 31, 1957.

Soaec 58. Committee II on economic development completed work August 29 and nine resolutions approved at conference plenary session same day. Committee II returned to Coordinating Committee proposal by Peru for creation of Inter-American Institute of Immigration.

All resolutions approved Committee II unanimously except Cuban proposal that IA–ECOSOC request study by IMF of foreign exchange problems associated with economic development. Colombians proposed amendment deleting specific time limit and suggestion that fund utilize Latin American monetary experts in study. Resolution in original form approved with Paraguay, Honduras and Colombia voting no, Dominican Republic absent and US abstaining in hope of further reconciliation differing views on procedure since everyone approved substance of resolution. Differing views were not reconciled prior to plenary session and at plenary US joined others in unanimous approval without change suggested by Colombia.

Major efforts of committee devoted to drafting omnibus resolution on financing of economic development. US emphasized greatest possible encouragement of private capital and technical skills and recognition with appreciation progress made under existing international financial institutions, as well as the expanded flow of private capital since 1954. Committee started with Chilean resolutions emphasizing further study of Inter-American Bank, Cuban proposal for 3-stage study of IA Bank, and Uruguayan proposal for specific series procedural steps to consider establishment new financial institutions. Peruvian representative especially helpful, Brazilian and Mexicans passive on whole. Chileans aggressive but not intransigent, Uruguayans less so. Brazilians approved resolution but made statement in committee referring to their recent suggestion at UN–ECOSOC that changes in world conditions during last 10 years made advisable review by United Nations of charters of IMF and IBRD to emphasize problems of less-developed countries.

Resolution recommended:

1. Study of financing of economic and social development of the continent as provided CPR resolution.

2. Convoking of specialized commission of governmental representatives to carry out study through IA–ECOSOC.

3. Transmittal of completed study to governments and further consideration of views of governments before additional procedural steps.

4. Financing of study under recommendation No. 27 of CPR.²

5. Appreciation for progress realized since 1954 by international credit institutions and also expanded flow of private capital in same period, noting desirability continuation of efforts carry out Resolution 63/54.³

6. That governments encourage to greatest possible extent flow of private capital and technical skills to Latin America.

Approved Mexican resolution requesting IA–ECOSOC take up with IBRD application lending policies mentioned 2d and 3d paragraphs of preamble to Resolution 63/54 and recommending that governments take appropriate action through their Executive Directors in IBRD consideration this matter. US made clear in committee that its agreement was to participate in discussions in IBRD Executive Board, but its substantive position on Bank’s lending policies would be formulated after consideration views of IBRD management and other Executive Directors and would be expressed in Executive Board discussion. Mexican representative cooperative.

Tax treaty resolution approved unanimously with Uruguayan representative noting his government’s basic position on desirability taxation in only one country. Resolution provides:

(1) Preparation preliminary draft of model treaty to prevent international double taxation on profits to be submitted member governments, taking into account Resolution 69/54⁴ and Recommendation 9 of CPR⁵ and other proposals to eliminate obstacles to international flow of private capital. Submission of draft text and governmental comments at 11th international conference, reconciling in advance differences of opinion wherever possible.

(2) Continuation efforts to conclude bilateral tax treaty and avoid delay because of drafting model treaty.

Also approved resolutions:

(1) Calling upon international credit institutions continue give attention to financing sound land reform and resettlement plans and appropriate technical cooperation;

(2) Two statistical resolutions urging action on Recommendations 1, 2, 3 and 12 of CPR⁶ and resolutions of inter-American statistical conferences, and study of possibility of establishing committee on continuing statistics through IA Statistical Institute in collaboration IA–ECOSOC;

(3) Drawing attention to report by inter-American municipal organization and recommending that American States recognize and encourage municipal economic activities especially as to creation of local sources of employment and organization of inter-municipal associations for setting up public service enterprises;

(4) Consideration by appropriate agencies to increase of funds for greater technical cooperation and industrial technological research.

Beaulac

1. Source: Department of State, Central Files, 365/8–3157. Official Use Only. Pouched to Washington.
2. See footnote 28, Document 134.
3. Reference is to Rio Economic Conference Resolution ES–Res. 63/54, “Participation of International Credit Institutions in the Promotion of Economic Development in Latin America,” approved December 2, 1954; for text, see Report of the United States Delegation to the Meeting of Ministers of Finance or Economy of the American Republics as the Fourth Extraordinary Meeting of the Inter-American Economic and Social Council November 22 to December 2, 1954, Quitandinha, Brazil (Washington, 1954), pp. 60–61.
4. Reference is to Rio Economic Conference Resolution ES–Res. 69/54, “Taxation and Tax Treaties,” approved December 2, 1954; for text, see ibid., p. 68.
5. See footnote 10, Document 134.
6. See footnotes 3, 4, and 13, ibid.