Foreign Relations of the United States, 1964–1968, Volume IX, International Development and Economic Defense Policy; Commodities

118. Telegram From the Mission to the Organization for Economic Cooperation and Development to the Department of State¹

Paris, March 11, 1966, 2050Z.

CEDTO 857. Subject: DAC Private Investment Work Program. Ref: (A) TOCED 674;² (B) DAC(66)6.³

1. At March 11 meeting,⁴ DAC approved report of Ad Hoc Group on Private Investment (DAC(66)1),⁵ with certain relatively minor modifications suggested by members: (A) Sweden and Japan suggested that specific mention be made in para. 6 of study of reflows from LDCs to industrialized nations as part of work of expert group; (B) U.S. requested inclusion of specific reference to report on details for economic impact study suggested by reftel for para. 9; (C) Italy suggested that para. 23 on incentives should stress investment guarantees as sine qua non of any incentive program to stimulate investments in LDCs.

2. All agreed expert group on statistics should be formed and proceed expeditiously. In addition, group Chairman Lamby clearly favored formation of permanent working party on private investment but Sweden and U.K. questioned whether DAC’s role in implementing work program justified permanent working party. Thorp concurred this view, proposing continuation of ad hoc group which can be reactivated at any time Chairman feels there is something to discuss. German Del noted that future function of group somewhat different from group’s original mandate, i.e., to help implement rather than simply to design work program, but Thorp did not consider that this presented problem.

3. With respect to U.S. proposal for report by continuing working party on terms of reference for economic impact study (para. 9), Thorp suggested that Secretariat undertake this report within time limit recommended by U.S. in cooperation with BIAC, Development Center and IBRD (which has also indicated desire to cooperate).

4. Other detailed drafting changes in reftel conveyed to Secretariat following meeting and will be incorporated along with other changes either in minutes of meeting or in addendum to report.

Trezise

1. Source: Department of State, Central Files, AID 1. Limited Official Use.
2. TOCED 674 to Paris, March 9, said that DAC(66)6 adequately reflected “US views on suitable future work program in the field of private investment” but suggested some changes in working “to fix work program to specific schedule.” (Ibid.)
3. Document 117.
4. The minutes of this meeting are contained in “Summary Record of the 62nd Session, held at the Chateau de la Muette, Paris on Thursday 10th and Friday 11th March, 1966” (DAC/M(66)2(Prov.)), March 30. (Washington National Records Center, RG 286, DAC Material: FRC 70 A 5922, Private Enterprise—Investment 1966)
5. “Draft Report by the Ad Hoc Group on Private Investment to the Development Assistance Committee on Suggestions for a D.A.C. Work Programme in the Field of Private Investment,” January 27, 1966. (Ibid.)