Evening star., 1961-02-06

the United States. The program
will be energetically admin
istered in the Department of
Commerce. I am asking the
Secretary Of Commerce to re-
port in full on plans and pros
poets by April I.
6. Agricultural Exports
Our agricultural in dustry,
which is Of unparalleled eff
cheney, must make its full con-
tribution to our payments bal
ance. I am directing the Secre-
tary. Of Agriculture to report
on all feasible and internation-
ally desirable means Of expand
ing our exports Of farm prod
ucts, and to emphasize the need
for export expansion as a pri-
fmary objective Of our new farm
programs,
Il! Policy on Economic Assist
lance
Our foreign economic assist
ance programs are now being
administered in such o way as
to place primary emphasis on
the. pEocurement of American
goods This assistance, accom-
panied as it is by the export of
American products, does not
therefore have a significantly
adverse effect on our balance
Of payments. (Not more than
20 per cent Of the funds ex-
pended for economic grants,
development loan assistance,
technical assistance and con-
tributionS to international Or
CARNATIONS. which amounted to
$2.6 billion in 1860, Is today
available for expenditures out
side the United States, and we
intend to keep an even closer
review Of these items.) These
restrictions will be maintained
until reasonable overall equi-
librium has been achieved. Then
the United States will discuss
with other capital exporting
countries the desirability Of in
Stituting common policies for
worldwide procurement in the
administration Of economic de-
velopment or assistance pro-
grams.
8. Tariffs, Restrictions and
Discrimination Against Ameri-
can Exports
Quota determinations against
American exports have largely
disappeared with the return of
currency convertibility. We will
press for prompt removal Of
the few restrictions that still
exist. as well as for the maxi
mum liberalization Of remain.
ing non-dscriminatory quotas
IN other industrialized coun-
tries. which apply mainly to
agricultural exports. In the
tariff negotiations now going
forward under GAIT we shall
seek the fullest possible meas
ure Of tariff reduction by for
eign countries to the benefit
Of our exports.
3. Promotion Of FOREIGN In
veStment In the United States,
We shall press those Western
countries with strong reserve
positions to eliminate the re-
strictions they still maintain
limiting the opportunities for
their citizens to invest in the
United States and other foreign
countries. Also. we are ini-
tiating. through the Depart
ment Of Commerce, a new pro-
gram to bring investment op-
portunities in the United States
to the attention Of foreign in
vestorS In the industrialized
countries.
| NO. Abuse Of ''Tax Havens. "
Taxation Of American Invest.
ment Abroad.
I shall recommend that the
Congress enact legislation to
prevent the abuse Of foreign
tax havens" by American
capital abroad as q means of
tax avoidance. In addition I
have asked the Secretary of
Treasury to report by April /
on whether present tax laws
may be stimulating in undue
amounts the flow Of American
capital to the industrial coun-
tries abroad through special
preferential treatment, and to
report further on what remedial
action may be required. But we
shall" not penalize legitimate
private investment abroa d
which will strengthen our trade
and currency in future years
IL. Foreign Assistance Con.
trtbution 70 the Less Developed
Countries and the Common De.
feEAse.
,. 1t is INDISPENSABLE that the
industrialized countries Of the
free world join in undertaking.
) systematic budgetary contribu.
! tons for economic assistance
; to the less developed countrie:
, and the common defense. These
! contributions should be fully
; commensurate with their eco.
, nomic and financial positions
Some countries are fulfillins
this responsibility: 1t Is 6
matter Of disappointment thai
, others have not yet undertaken
; to do so. Such actions are i'm.
> portant In the short-run tc
achieve a better balance ir
, international trade and pay.
ments. Even more important
, they are essential to the con.
, tinuing and effective discharg,
OF our common responsibilitie.
for free world security, eco
nomic growth and stability.
IL. Reduction of Custom,
4 Exemption for Returning Amer
lean Travellers.
After World War II. as par
Of our efforts to relieve tn,
> dollar shortage which ther
plagued the world. Congress,