vided by international law. While fully recognizing the duty of aliens to be bound by the laws of any state in whose jurisdiction they find themselves, the Delegation did not feel that a useful purpose was to be served in doing away with the international legal requirement that states maintain certain minimum standards in their treatment of such persons or their property.

Articles on Pacific Settlement in the Charter of the Organization

The provisions on pacific settlement of controversies incorporated in the charter of the Organization of American States are as follows:

Chapter I, entitled "Nature and Purposes", states in article 4 that one of the purposes of the Organization is "to prevent possible causes of difficulties and to ensure the pacific settlement of disputes that may arise among the Member States".

Chapter II includes among the "Principles" of the Organization the statement that "controversies of an international character arising between two or more American States shall be settled by peaceful procedures". (Article 5g.)

Chapter IV is entitled "Pacific Settlement of Disputes" and includes four articles (articles 20-23). Article 20 sets forth the general principle that controversies between American states shall be submitted to the procedures set forth in this instrument before being referred to the Security Council of the United Nations. This principle, which is based on article 52 of the Charter of the United Nations, is also incorporated as article II, paragraph 1, of the American treaty on pacific settlement discussed above. Each of these articles differs from the corresponding article found in the inter-American treaty of reciprocal assistance of 1947 in that the latter makes resort to the interAmerican system a prerequisite to submitting the case either to the Security Council or the General Assembly. The reference to the General Assembly was omitted in the Bogotá documents on the motion of the Ecuadoran Delegation in order to maintain consistency with article 52 of the Charter of the United Nations. A relevant provision in this connection is article 102 of the charter of the Organization of American States, which states that none of its provisions shall be construed as impairing the rights and obligations of the member states under the Charter of the United Nations.

The peaceful procedures are named in article 21. These include direct negotiation, good offices, mediation, investigation and concili

ation, juridical settlement, arbitration, "and those which the parties to the dispute may especially agree upon at any time".

Under article 22 the parties undertake the obligation, in the event of a controversy which, in the opinion of one of them, cannot be settled by negotiation, to agree on some other peaceful procedure that will enable them to reach a solution. A similar obligation is found in article II, paragraph 2, of the treaty on pacific settlement discussed in the preceding section.

As a general reference to this treaty the charter then states (article 23) that a special treaty will establish specific procedures appropriate for the settlement of disputes in such a manner that it will not be possible for a dispute among the American states to fail of definitive settlement within a reasonable period.

Contrary to the "Definitive Project" of the Pan American Union, there is no provision for consultation of the member states for the purpose of assisting the parties in reaching a settlement. In a brief discussion of this matter it was decided that neither the Council nor the Meeting of Consultation should be given power to recommend terms of settlement. Neither did the advisability of permitting them to recommend procedures of settlement receive favorable consideration, apparently on the conceptual theory that the compulsory arbitration provisions of the pacific-settlement treaty assure the settlement of any dispute and render unnecessary the intervention of any multilateral agency to recommend procedures to be followed.

The Council of the Organization is, however, given certain functions in the treaty on pacific settlement, especially in convening commissions of investigation and conciliation, recommending measures for the maintenance of the status quo pending the convening of such commissions, and assisting in the establishment of arbitral tribunals, including participation in automatic procedures for this purpose.

Collective Security

Article 26 of the treaty of reciprocal assistance provides that its "principles and fundamental provisions" should be incorporated in the charter of the Organization. The threshold question to be decided by the Bogotá conference in this connection was, therefore, the procedure by which this should be done by paraphrasing the principal provisions of the Rio treaty, by incorporating them textually, or by incorporating them by reference. The last course was wisely decided upon and is carried out in the two brief articles constituting chapter V. The first (article 24) states as an operative provision the

basic principle of the Rio treaty (also included in chapter II as a principle), that aggression against one American state constitutes aggression against all American states.

In implementation of this, article 25 then recites the situations which might endanger peace and which would bring the Rio treaty into operation. The article then provides that in such situations the American states "shall apply the measures and procedures established in the special treaties on the subject”.

Recognition and incorporation of the organizational features of the Rio treaty relating to the organ of consultation are likewise made in articles 39, 43, and 52 of the charter. These are discussed from the organizational point of view in chapter two of this report, pages

11-24.

CHAPTER FOUR

Inter-American

Economic Cooperation

Introduction and General Summary

A

S A BASIS for its principal task, the drafting of an economic agreement, Committee IV of the Conference had before it the text of the draft basic agreement for inter-American economic cooperation which had been prepared by the Inter-American Economic and Social Council in Washington and submitted as a working paper to the American governments in advance of the Bogotá conference, as well as the many amendments to the draft agreement which were introduced by various delegations at the Conference. Committee IV was also responsible for study of and action upon a number of draft economic resolutions which were introduced by various delegations, and there were others finally approved which resulted from the discussions in the committee.

THE ECONOMIC AGREEMENT

The text of the economic agreement of Bogotá, as it emerged from the Conference, is on the whole a satisfactory document from the standpoint of the United States Delegation, although, had time afforded greater opportunity for a more thorough discussion, sufficient unanimity might have been reached on all points to have eliminated the necessity for any reservations.

It was in some respects remarkable that the working committee

and its subcommittees and working parties were able, within a space of approximately two weeks of active meetings, to produce the economic agreement which finally emerged. This was accomplished despite the fact that there were a number of important and highly controversial issues upon which agreement could not be reached in the time available at Bogotá—and which therefore had to be referred to the Inter-American Economic and Social Council for further study and for possible later consideration by the proposed economic conference which, it was agreed, would be held in Buenos Aires during the last quarter of 1948-and despite the fact that there were important reservations by a number of delegations to various articles.

From the standpoint of advancing economic development throughout the Western Hemisphere, a primary objective of the economic agreement, chapter II on "Technical Cooperation", chapter III on "Financial Cooperation", and chapter IV on "Private Investments" are perhaps the most important.

Without creating a large autonomous inter-American agency in the field of technical cooperation, the governments nevertheless agree, in chapter II, to a specific program of technical-cooperation activities through a staff directly responsible to the Economic and Social Council and through other existing agencies. While undertaking to augment the budget of the Pan American Union for technical-cooperation work, they avoid commitments for the expenditure of vast sums of government money in this field, as had been proposed by certain delegations. Various safeguards are placed on this work to discourage requests for technical assistance on anything but potentially sound and practical projects and to avoid duplication of effort with other national and international agencies already operating in this field.

In chapter III on "Financial Cooperation", the states undertake to continue, through such means as currency-stabilization loans and economic-development credits, the kind of governmental financial operations which have been carried on for a number of years on a voluntary basis. In implementation of this it was announced during the course of the Conference that the President of the United States had sent to the Congress a request for an increase of $500,000,000 in the lending authority of the Export-Import Bank.

Chapter IV is discussed in considerable detail in a later section of this report (pages 64-68). It should be noted, however, that it provides a number of general and specific assurances regarding the treatment of private foreign investments in the American republics and also assures that such investments shall not be used as a means of interfering in domestic politics in the countries receiving the investments or for prejudicing the security or fundamental interests of such countries. Provisions are also included placing foreigners