166. Memorandum From the Deputy Assistant Secretary of State for Inter-American Affairs (Snow) to the Secretary of State1
SUBJECT
- Outcome of Buenos Aires Economic Conference
The Buenos Aires Economic Conference, like several of its predecessors in the economic field, was held mainly in response to Latin American initiative and desires. Our Delegation faced the delicate task of resisting a series of unreasonable or unacceptable proposals while avoiding a wholly negative attitude and retaining the confidence and respect of the Latin Americans. Although the Conference did not yield binding commitments or solve any major problems, its resolutions do define the problems and point the way toward their solution.
The following are the most important subjects on which agreement was reached:
The Economic Declaration: This is essentially a constructive statement of broad objectives without specific commitments, time limits or details of implementation. Its acceptance enabled us to avoid being confronted with an economic convention which we could not have signed without a whole list of reservations unless it were to be reduced to rather pointless generalities. The United States Delegation succeeded in obtaining the inclusion in the Declaration of clauses [Page 558] which recognize the importance of private investment and of sound monetary and financial policies. (A copy of the Economic Declaration is attached.)2
Financing of Economic Development: The resolution adopted on this subject reiterates in effect the recommendation of the Committee of Presidential Representatives to study proposals for regional financing institutions previously put forward by Cuba, Chile and Venezuela. The resolution recognizes the recent progress made by existing international credit institutions and the expanded flow of private capital. It also requests governments to encourage to the greatest possible extent the flow of private capital and technical skills. A related resolution asks for the continuation of efforts to conclude bilateral tax treaties.
Surplus Disposal: Our Delegation has indicated that it is especially pleased with the resolution on this subject. It recommends orderly procedures which will not unduly disturb prices; the continuation of timely and effective consultation; and continuing attempts to channel production so as to avoid the creation and chronic accumulation of surpluses.
Commodities: Of the two resolutions which emerged on this subject, our Delegation had to vote against one. We were able to agree to the one recommending the creation of a permanent Committee on Basic Products in the IA/ECOSOC which will study markets and, when circumstances warrant, propose meetings of governmental experts on the production and marketing of products. The resolution we voted against—our only negative vote—would have implied recourse to commodity agreements in certain circumstances, and had other objectionable features.
Regional Market: The relevant resolution declared that it is advisable to establish a Latin American regional market, gradually and progressively, and in a multilateral and competitive form. It resolved principally to recommend that the IA/ECOSOC participate with the United Nations Economic Commission for Latin America in studies and activities related to this subject.