161. Telegram From the Ambassador in Argentina (Beaulac) to the Department of State1
Soaec 61. Committee IV completed work August 31. Approved following six resolutions, five unanimously, one with Cuba reservation.
Latin American regional market. Declares advisability its establishment, gradually and progressively, in multilateral and competitive form and resolves principally to recommend to IA–ECOSOC participation with ECLA in studies and activities relating this subject.
Final resolution replaces six proposals introduced Argentina, Brazil, Chile, Mexico and Peru (two), none of which would have been fully acceptable to US in original form. Protracted debate in working group, with active US participation, centered questions nature eventual regional market and form reference to European Common Market. US, with frequent assistance Brazil, occasional support Cuba, Argentina, Mexico, Peru was able emphasize competition and that final form eventual regional market—which still needs much study—not be prejudged. Also eliminated any reference to possible “selectivity” by product or industry. US insisted reference ECM changed, from emphasis possible adverse consequences ECM and inference LA regional market desirable as defensive measure, to phrasing merely noting ECM may have repercussions depending upon nature its evolution. Resolution also notes ECLA Trade Committee work on payments and goal of multilateralism as part conditions favorable to creation regional market.
In final plenary session Committee, Central American countries, led by El Salvador reserved when they unable delete reference to competition. Finally, through efforts Brazil and Santa Cruz (ECLA) they agreed withdraw reservation, but enter in minutes of Conference statement they consider resolution does not affect Central American integration plans.
- Promotion Inter-American Trade. Considering that elimination of trade and payments restrictions is conducive increase inter-Latin American, inter-American and world trade, recommends to LA governments, if they find advisable, enter into contacts gradually liberalize trade and payments in different regions of the area, with due regard international obligations. Resolution transformed from Uruguayan proposal for regional commissions among countries interested [Page 552] in eventual economic integration. In final session Committee, Cuba entered reservation on grounds matter beyond instructions its delegation. Final decision, which might be favorable, awaits return delegation to Havana.
- Encouragement of Low-Cost Housing. Asks OAS investigate on basis studies already made, whether trade restrictions on building materials constitute a major obstacle to development low-cost housing. If this found to be case, interested governments requested consider possibility lowering such restrictions with due regard international commitments. This result tortuous metamorphosis under US guidance from original Chilean proposal for regional market in construction materials.
- Immigration. Recommends IA–ECOSOC study within two years problems immigration to LA. Substitutes for Peruvian proposal creation inter-American immigration institute along lines plan referred in Res. XIV of Bogota.2
- Trade advantages for landlocked countries. Recommends governments study possibilities of reciprocal agreements which in conformity international obligations, would give trade advantages to landlocked countries. Replaces Paraguayan proposal calling for renunciation by member countries of MFN privileges for trade concessions negotiated by Paraguay and Bolivia.
- Free transit for landlocked countries. Recommends governments give greatest possible free transit facilities for landlocked countries. Bolivian request for recognition right negotiate with other countries for ownership transport and communication facilities withdrawn in face firm general opposition couched in conciliatory language.
Committee IV regional market resolution considered one of major conference items by LA governments. USDel feels vigorous discussion in hammering out language resolution useful in conveying US views. Believe final text pleasing to LA governments, while not compromising principles economic integration emphasized by US.