Evening star., 1939-11-16
Inter-American Body
Studies Economic
Cooperation
Confidence Is Essential
For Credit Exchange,
WeIIes Warns

Representatives of the 81 Ameri-
can republics began business ses-
sions today to work out means OF
closer financial and economic CO.
operation after being warned by
Acting Secretary, of State Sumner
Welles that confidence in just treat
ment must be maintained as basis
for credit interchange.
Mr.. Welles spoke at the formal
opening session at the Pan-Amer-
ican Union yesterday of the Inter-
American Financial and Economic
Advisory Committee, appointed at
the recent Panama conference to
seek practical solutions to economic
problems arising from the European
war.
Subcommittee Planned.
The committee decided this morn
ing to form three subcommittee to
carry on details of its work and
planned to meet again at pm. to
Asked about the possible relation
of the present conference to the
Mexican oil controversy, Mr.. Welles
said at his press conference at the
State Department today that he be-
lieved the cooperative discussions
probably would lead to more fav-
orable atmosphere for the settle
ment of any specific disputes.
He pointed out, however, that the
controversy with Mexico is being
dealt with by direct negotiation and
would have no place in the new
committees discussions.
Although his speech yesterday con-
tained no direct reference to the
dispute over Mexican appropriation
of some $50, 100000 worth of Amer
ican oil properties, there was an i'm
piled warning that such seizures
without adequate compensation
would bar future American invest
ments or extension of credit.
No Privileged Status.
Emphasizing that no one any
longer thought citizens of any one
American republic could claim
privileged status in any other, Mr..
Welles added:
The citizens of one American ma
ton who undertakes to do business
In another American country. or
who invests his money in another
American republic, recognizes today
that his business and his investment
are subject to the laws of that coun-
try. He has solely the right to eX-
pect that he will receive justice un-
der those laws, and in accordance
with the generally accepted prin-
ciples of international law.
AL of us also recognize that if
confidence on the part of any of our
nationals in the justice of the treat
ment which they will receive, or
which their legitimate investments
will receive, at the hands of the
people or the authorities of a neigh
Dor country is shaken, credit is cor
respondingly undermined. AS has
been truly said, confidence is the
mother of credit.
Without such reciprocal conf
dence on the part of all our peoples,
that increase of American
trade and investment on a sound
and mutually beneficial basis which
we all desire and from which we
would all profit will necessarily re-
main an unattained goal"
Committee Sessions Closed.
Mr.. Welles pointed out that the
work of the committee fell into
two phases-considerat of i'm
mediate action to relieve emergency
problems arising from the Euro
pean war, and study of a long
range program. He promised the
aid of all departments of this Gov
eminent.
Ambassador Augusta S. Boyd of
Panama replied in behalf of the
other countries to welcomes by Mr..
Welles and DR.. Hector David Cas-
tro, Minister of Ell Salvador and
vice chairman of the Pan-Amer-
ican Union. expressing confidence
that the committees work would
he cl1croc occfII1