50. Airgram From the Department of State to All Posts in the American Republics1
SUBJECT
- IA-ECOSOC Meetings—Mexico City, October 1962
REF
- Mexico City’s 12212
I. Summary Evaluation
The first Annual Meetings of the Inter-American Economic and Social Council (IA-ECOSOC) conducted a successful review of economic and social progress in Latin America. Meeting for three weeks (October 1-21) at the Experts level and subsequently (October 22-27) at the Ministerial level, frank discussions were held on accomplishments and problems in the first year of the Alliance and future prospects. The fundamental validity of the Charter of Punta del Este was reaffirmed and there was common agreement that the Alliance was primarily a Latin responsibility.
After initial hesitation, a process of self-appraisal and cross-questioning was starting among countries in meetings at the Experts level. For the most part, representatives of Latin governments presented reasonably full accounts of progress and shortcomings in their countries’ performances. It is hoped that such confrontation will become a regular feature in the IA-ECOSOC and an important mechanism toward this end was adopted at the meetings. (See Special Committees below.) There was also agreement on the need for high level review of the Inter-American system, to be undertaken by two Latin statesmen.
While the Ministers were of course highly sensitive to developments in the Cuban crisis, the meetings themselves considered only the economic and social aspects of the Alliance, sustaining the non-political tone of the discussions at the Experts level.
II. Major Substantive Issues
There was general recognition that accelerated growth in Latin America will require: 1) well-developed plans which carefully identify investment projects and important structural reforms to be undertaken, 2) greater progress in land reform, taxation and financial discipline, [Page 114] expanded educational programs and other self-help measures, 3) improved opportunities for exports and 4) continued high levels of external assistance with more flexible procedures (see reftel for the extensive experts-level discussion on U.S. aid). On the other hand, the role of private enterprise (domestic and foreign) was not fully discussed.
Of the three major areas of substantive discussion (progress under the Alliance, integration and trade) trade problems raised by the Latins were the most difficult to reconcile with U.S. positions. The Latins continued to press for concerted action to negotiate elimination of European Economic Community restrictions on meat, a sugar study group directed in part toward recommending changes in U.S. sugar policies and prompt consideration of a regional mechanism to compensate for fluctuations in export receipts. The U.S. abstained on the meat and sugar resolutions and was able to appropriately modify the regional approach to compensatory financing.
The discussion of integration in Latin America was less incisive in highlighting important issues or eliciting proposals for further progress. The substantial steps already taken in Central America were noted but broader and speedier actions appeared necessary among the countries in the Latin American Free Trade Area.
III. Major Actions Taken
Some 40 resolutions were approved by the Council, of which particular attention is called to the following:
Agreement was reached on two important structural innovations to help move the Alliance forward. First, a Committee of two statesmen is to be appointed by the OAS Council to review the Inter-American system in the light of Alliance requirements and to make recommendations for adjustments. Second, the Council established six Special Committees which would meet at least twice a year to discuss their respective subjects, in order to promote self-help and reform. The six committees and their memberships follow:
- I.
- Special Committee of Planning and Project Formulation: Argentina, Costa Rica, Ecuador, Haiti, Honduras, Panama, Peru, United States and Uruguay.
- II.
- Special Committee on Agricultural Development and Agrarian Reform: Chile, Costa Rica, Dominican Republic, Ecuador, Mexico, Paraguay, Peru, United States and Venezuela.
- III.
- Special Committee on Fiscal and Financial Policies and Administration: Brazil, Chile, Colombia, Ecuador, Guatemala, Honduras, Mexico, Nicaragua, and Venezuela.
- IV.
- Special Committee on Industrial Development and Financing of the Private Sector: Argentina, Brazil, Colombia, El Salvador, Guatemala, Mexico, Nicaragua, United States, and Venezuela.
- V.
- Special Committee on Education and Training: Argentina, Brazil, Chile, Colombia, Ecuador, Haiti, Panama, Paraguay and Uruguay.
- VI.
- Special Committee on Health, Housing, and Community Development: Dominican Republic, El Salvador, Guatemala, Haiti, Nicaragua, Paraguay, Peru, Uruguay, and Venezuela.
The United States is a member of three of these committees and expects to cover the other committees as an observer. In order to contribute most effectively to the work of each committee it is necessary that our representatives have available a growing volume of information relevant to the work of each committee. We expect the OAS Secretariat to prepare a list of questions for use by the committees (which will be soon sent to the field), answers to these questions should facilitate the discussions of the committees.
In the field of trade, a resolution was approved which specified the characteristics and rules for the establishment of OAS “Action Groups”. The basic US objection to these Groups was the interpretation of their powers, including powers of speaking on behalf of, or negotiating for, the United States. The rules state that these Groups may be created by IA-ECOSOC or the Council of the OAS, that the resolutions creating them must specifically state their powers and that the Groups may represent only those countries which approve their establishment. Thus the Group on Meat, for example, does not represent the United States.
Other resolutions were approved setting up special or “pre-action” Groups, whose functions will be to analyze various problems connected with trade in bananas, coffee and cocoa, follow efforts being made in other international forums to arrive at solutions to these problems and, if appropriate, to present to IA-ECOSOC a plan of action to facilitate solutions which may include recommendation for the establishment of Action Groups. The US will decide at the time these plans are presented whether or not it wishes to approve them. The US will participate in the work of the groups on bananas and cocoa. Resolutions calling for support for the creation of international study groups on bananas and copper under UN auspices were also approved.
IV. The Next Annual Meeting of IA-ECOSOC
It was agreed to recommend to the Council of the OAS that the next regular Annual Meeting be held in either July or August 1963 in Brazil.
[Here follows section V., “Main Documents.”]