Evening star., 1949-09-13

TGSC VI UliC ooC1 ILLS oASo, @AA~A'
toned above, the ministers gave
special attention to the follow
ing subjects:
/. Overseas investment.
2. Com m odity arrangements
and stockpiling.
8. Limitations on items which
may be financed under present
ECA procedures.
4. Customs procedures.
S. Tariff policy.
6. Liberalization of intra-Euro-
pean trade and payments.
7. Sterling balances.
s. Petroleum.
9. Shipping.
10. Provisions for continuing
consultation.
8. A working group on over
seas investment reviewed both re-
cent experience and future pros
poets for the flow of productive
investment. both private and pub
lie, from North America to over
seas areas, especially underdevel-
oped countries. It was agreed
that a high level of such invest
ment could make an important
contribution toward reducing the
sterling-dollar disequilibrium and
that every aspect of this problem
should be explored on contin-
uing basis. In order to initiate
this work. the Presidents Com
mittee for Financing Foreign
Trade will be asked Immediately
to explore possible lines of action
in cooperation with correspond
ing groups of British and Cana
dian financial and business repre-
sentatives. While dealing with all
aspects of private and public in
vestment, the committee will be
expected to address itself espe-
cially to the problem of incentives
and of providing suitable en-
vironment for a high level of
private investment.
U. S. to Review Stockpiling.
8. A working group on COM
modify arrangements and stock
piling gave special attention to
rubber and tin. The Canadian
representatives stated that the
Canadian government was pre-
pared to take steps to increase re-
serve stocks of tin and rubber in
Canada. The United States rep
resentatives reported that the
United States Government was
prepared to open to natural rub
ber substantial additional area
of competition, including a modi-
f1cation of the Government order
relating to the consumption of
synthetic rubber. The United
States would review it's stockpiling
program, with particular refer
ence to rubber and tin.
10. Special attention was given
by another group to the practical
difficulty being experienced by the
United Kingdom in making fully
effective use Of its ECA aid to
cover its dollar deficit. This diff
flculty arises out of the fact that,
lalthough the United Kingdom
needs dollars to pay for goods in
the United States, to make settle
ments with other countries, to pay
for services, and for other pur-.
poses, the types of transactions
which may be financed by ECA
dollars have been definitely
limited. It has been agreed that,
In order to carry out the basic.
purposes of the Economic CO.
operation Act. it will be neces-
sary for the United Kingdom to
finance with it's share of ECA
funds a wider range of dollar
expenditures than has hitherto
been eligible, both within and out
side of the United States. After
careful examination of the dollar
expenditures proposed to be made
or authorized by the United King
dom. it appears that eligibility
requirements can be broadened to
the extent required within the
limits set by the Economic Co.
operation Act. This would broaden
the use but not increase the
amount of ECA funds allocated
to the United Kingdom.
Customs May Be Obstacle.
II. In the consideration Of
measures which creditor countries
might take to reduce barriers to
trade, it was recognized that GUS
toms procedures may create OBJ
stacles, psychological, as well as
actual. Technical discussions of
this subject disclosed that the
United States, through admins
trative action and proposed legis-
J lation, was already contemplating
constructive steps in this field.
Canadian representatives stated
, that the Canadian government
would undertake a further review
of the administrative operation
if its customs act in the light Of
these discussions. AS to tariff
rates, it was noted that high tar
ifs were clearly inconsistent with
the position of credit countries.
There had already been signif1-
cant and substantial reductions
in United States tariffs during the
last Is years. The policy of the
United States Government was to
seek further negotiation of trade
agreement through which ad-
ditional reductions might be
made, within the framework of the
Reciprocal Trade Agreements Act.
IL. There was agreement that
one of the ways in which the
competitive position of United
Kingdom products might be i'm
proved was by a widening OF the
area in which such products
competed freely with those Of
other countries. In this connec-
tion as an initial step toward a
more general liberalization the
United Kingdom delegation out
lined it's proposals for lberaliz-
ing trade. with countries with
}, which it did not have balance of