Evening star., 1946-08-15
Text of Byrnes' Address
Secretary Of Stote Critieizes Red Position
On Economic Treaties With Axis States

sums which the Soviet Union Is
exacting from these countries rs
reparations.
| The restora ton of United Nations
properties in these countries would
be by local currencies and would
leave productive assets in those
countries which add to their taxable
resources.
! Repairing the damages to United
Nations factories in ex-enemy coun-
| tries helps to restore industry in
j, those countries and aids their econo-
mic recovery. 1t takes nothing out
i Of those countries. Reparation de-
hveries, on the other hand, take
valuable assets from these impov-
erished lands and necessarily slow
down their economic recovery.
! The United States must also re-
pudiate the suggestion of the Soviet
delegation that the economic clauses
proposed by the United States and
based upon the principle of equality
and most favored treatment
are part of an effort to exploit the
ex-enemy countries for the selfish
advantage of the United States.
Defends Economic Equality.
I should have thought it unneces-
sary at this late date in the history
of the United Nations to occupy the
time of this conference with a de-
fense of the principle of equality of
economic opportunity for all coun-
tries. 1t is a principle embodied in
the Atlantic Charter and reaffirmed
in the United Nations declaration
1t is an accepted principle in one of
the treaties presented to this con-
ference by the Council of Foreign
Ministers.
Yet in spite of this impressive
record of agreement we have heard
this principle of economic liberty
denounced as a method of enslave-
ment and exploitation of the weak
by the strong. We have heard 1t
suggested that the ex-enemy corm-
tries should have objected to the
provisions establishing for them a
position of reciprocal equality with
members of the United Nations
during a transitional period in
which they will have time to con-
clude deflnitive commercial treaties,
but at the Potsdam Conference the
proposal of the United States was
accepted In principle. Among other
things the proposal declared that |
we deem it essential that the satel- |
lites not conclude treaties, agree |
ments or arrangements which deny |
to Allied nationals access, on equal
terms, to their trade, raw materials
and industry"
A policy Of economic equality per-
mits each nation to carry on its eco
nomic relations with others along |
lines of its own economic welfare |
BY avoiding preferential arrange
ments with some countries, it elm !
mates the corresponding discrimina-
ton against others which inevitably |
gives rise to counter determinations.
Fears EnsIavement Ex ploitation.
Would any one seriously propose
that an opposite intent be written
into these treaties-that Italy or |
the Balkan countries should be free !
to discriminate in favor of some .
and against others OF the Allied |.
countries which co-operated in the
defeat of the aggressors?
Would any one suggest that those
countries, which were the principal |
objects OF German economic pene-
tration and encirclement, should !
continue under the same system of |
economic relationship but that they
should merely substitute for Ger
many some other country upon !
which they would be almost entirely !
dependent for supplies and for
markets? 1t is out of such ar
rangementS, and not out OF nondis- |
criminatory trade, that enslavement !
and exploitation arise.
1t has been suggested that the
article constitutes an invasion of |
the sovereignty of the ex-enemy /
states. Let us examine that srgu-
ment. Unlike the corresponding ar
ticles of the 1919 treaties the pres
ent draft treaties impose no uni
lateral obligations. They merely re-
quire that during d period of Is |
months Italy, the three Balkan |
countries and Finland will accord |
nondiscriminatory treatment In
commercial matters to those mem !
bers Of the United Nations which |
reciprocally grant similar treat |
ment in like matters
This is not a punitive article. ItI
Is as much in the interest of the
countries to which it is offered as
1t Is OF the United Nations. 1t af-
fords all countries, and especially
small countries, measure OF pro-
lection against the ruthless exer-
else of economic and political
power. 1t allows each country to
develop its resources according to
It's aptitudes and to buy to its best
advantage what it needs from
other countries. 1t Is the best as
surance against deterioration of
the worlds economy into a series
OF economic blocs.
Stable Peace Conditions Asked.
The United States has sought no
territorial or other exclusive ad-
vantages for itself from the war
But it does attach the greatest i'm
portance to the establishment of
conditions OF a stable peace and
OF prosperity throughout the world
1t cannot remain indifferent to
arrangements, under the treaties or
outside them, which tend to restrict
and divert trade or diStort interna-
tional economic relations to the
prejudice of the great majority of
the United Nations and of world
peace and prosperity.
Before closing I want to say a
few words about Greece. In the
conference she has been criticized
by an ex-enemy state and by some
members. That is very unfair. At
a most critical hour, before some
of us realized our own peril, that
small but great nation resisted with
matchless vslor the full might OF
the European axis.
I shall never forget how we then
waited for news from Greece. With
the courage her people have ever