Evening star., 1949-06-12
Big Business Group
Supports ITO Charter
With Two Changes
On the Asseeioisd Press

Congress to ratify the 56-natior
International Trade Organization
charter-after throwing out two
provisions.
The business research group said
the articles on foreign investment
are "inadmissible" because they
would bind America to invest but
would not bind other governments
to protect the investments.
Even with the investment ar
ticles eliminated, the ITO charter
will be imperfect" said Philip D
Reed, CED's Policy Committee
chairman and board chairman OF
the General Electric Co. He added:
But the committee feels 1t ID
better document than none at
ALL"
This qualified endorsement was
the first to be given the ITO char
ter. drawn ut Havana In 194S, by
a major business organization
The aim Of ITO is to lower the
barriers to world trade.
u. 8. Chamber Opposes.
Both the National Association
Of Manufacturers and the United
States Chamber of Commerce have
announced their opposition to
American membership In the pro-
posed ITO.
Mr.. Reeds 30-member CED
committee. the policy voice of the
privately supported economic
planning and research organiza-
ton, was divided. Five members
said they could not endorse ITO,
even with the investment articles
removed.
The majority said it regards the
drafting Of the charter as met
gain. since the malpractices which
the charter fails to correct would
in any case exist II the charter
were not to come into force"
Mr.. Reeds accompanying state
ment suggested that refusal of
the United States to join might
well be the signal for acceleration
OF widespread trade discrimina- =
ton and intense economic nation
alism." a
ITO Seen Useful.
Peace, In such q climate, would
be hard to achieve and harder to
maintain" he added.
The mere existence of ITO as a
world forum may mean that prob
lens of high tariffs, trading
"blocs." discrimination and import
quotas may be solved by persua-
sion and compromise. the report
held. This, it added, would be
better than the course of provo
cation and retaliation" pursued In
the trade wars of the 1930s.
AS to overseas investment, the
committee said the United States
was "unwise" in trying to get
agreement on foreign lending at
Havana. The conference was
called. 1t said, at time when
many Of the other countries held
the erroneous" view that Amer
lea must export its capital to
avoid economic collapse.
From this they concluded that
they would enjoy the benefits Of
American foreign investment
whether or not they bound them
selves to deal equitably with
American properties and invest
ments," the report went on. =
It added that as a result the
American delegates failed to get
any reasonable and enforceable"
guarantee that investments over
seas would be protected from
seizure, civil strife, or discrimina-
ton by the borrowing country.
Truman's Talk Recalled.
even in the absence Of such
guarantees the United States may
choose to provide assistance to
stimulate the development Of eco
nomically backward areas" the
report said.
This view was pointed up by
President Truman's remarks yes
terday at Little Rock. Ark, where
he announced his intention Of
pressing for early action on the
foreign investment proposal he
first outlined In January.
Although he gave no further
details, Mr.. Truman said the pro-
gram els intended ultimately to
bring about q great movement OF
capital through the channels OF
private investment for the devel-
opment of these poverty-stricken
areas"
He declared the proposal was
mot q program Of relief" and that
It "offers enormous potential
benefits in q growing world eco
nomy."
The CED report, however. said
that the Government Should not
be bound" to carry out such q
program "by the terms of an
international agreement"
On this score, one of the dis
senting members said the ITO
charter as now drawn would per-
NIT all other countries to "exer-
else trade restrictions against the
United States" but leave this coun-
try powerless to take measures Of
economic self defense.
This was the view Of John D.
Biggers. president of the Libby
Owens-Ford Glass Co.
The other dissenters were Henry
z. Bristol. president Of Bristol
Myers Co.; s. Sloan Colt, president
of Bankers Trust Co.; Fowler
Mccormick, chairman Of Inter-
national Harvester Co.. and j.
Cameron Thomson, president Of
Northwest Bancorporation.
The Is who endorsed the report
included Henry Ford II; former
Undersecretary of State William
J.. Clayton; Clarence Francis.
chairman of General Foods Corp; !;
Jay c. HORNED. meat packer; Eric
Johnston. president Of the Motion
Picture Association; Gardner
CowleS Des Moines publisher. and