The Foreign Ministers agreed that it would be desirable to establish an inter-American Commission of Science and Technology. They left over for later decison whether this Commission should be adapted from existing institutions or whether a new body should be formed.

Dept. of State Press Release, No. 67, Feb. 24, 1974, pp. 5-6; Dept of State Bulletin, Vol. LXX, No. 1812, Mar. 18, 1974, pp. 257–262. See also this Chapter, § 1, supra, p. 442, and § 2, supra, pp. 482-483.

Section 49 of the Foreign Assistance Act of 1974 (P.L. 93–559; approved December 30, 1974) sets forth a statement of congressional policy with respect to assistance to Africa. Section 49 provides:

Sec. 49. The President is requested to review the regional allocation of economic development assistance and to increase Africa's share of the Agency for International Development loans and grants. A special effort should be made to provide more assistance to the sixteen of the world's twenty-five least developed countries that are in Africa and to the fourteen African nations that are judged to be most seriously affected by rising costs of food and fuel. The President is requested to make a report to Congress on action taken to provide the developing countries of Africa with an equitable share of United States economic assistance at the time that the Agency for International Development's operational year budget for fiscal year 1975 is submitted to Congress and again with the submission to Congress of the proposed Agency for International Development budget for fiscal year 1976.

U.S.-Saudi Arabia

Bilateral Agreements

On June 8, 1974, Prince Fahd bin Abd al Aziz, Second Deputy Prime Minister and Minister of the Interior of Saudi Arabia, and Secretary of State Henry A. Kissinger signed a joint statement on Saudi-Arabian-United States cooperation which included an agreement dealing primarily with economic and social development plans for Saudi Arabia.

With respect to economic and social development, the two sides agreed on the following:

To establish a Joint Commission on Economic Cooperation. This Commission will be headed by the Secretary of the Treasury for the United States and by the Minister of State for Finance and National Economy for Saudi Arabia. Its purpose will be to promote programs of cooperation between the two countries in the fields of industrialization, trade, manpower training, agriculture, and science and technology. The first formal meeting of this Commission will take place

in Saudi Arabia in October of this year. The Commission members will include representatives from the Departments of State, Treasury, and Commerce, and the National Science Foundation and possibly other agencies for the United States side. For the Saudi Arabian side, it will include representatives from the Ministries of Foreign Affairs, Finance and National Economy, Commerce and Industry, the Central Planning Organization, and other government departments concerned. The Economic Commission will review at this first meeting the recommendations and plans prepared by Working Groups that will be meeting in the meantime. These include the following:

(1) A joint Working Group of Industrialization will meet in Saudi Arabia beginning on July 15, 1974, to consider plans for Saudi Arabia's economic development, paying special attention to the use of flared gas for expanding the production of fertilizer.

(2) A Joint Working Group on manpower and education will meet in Saudi Arabia shortly thereafter to consider projects aimed at the further development of Saudi technical manpower skills, the expansion of educational and technical institutions, the transfer of technological expertise, the establishment of a comprehensive Saudi Arabian science and technology program keyed to the national goals of the Kingdom, and an expansion of sister university relations.

(3) This will be followed by another Joint Working Group on technology, research and development in scientific fields of interest to examine specific cooperative endeavors in such fields as solar energy and desalination.

(4) In addition a Joint Working Group on Agriculture will meet to examine agricultural development proposals in general and desert agriculture in particular.

The Commission will encourage and facilitate periodic visits to Saudi Arabia by scientists, engineers and research specialists drawn from the U.S. Government, universities, and private business in order to supplement the operations of the Working Groups and to examine specific proposals for cooperation. The two governments have agreed to study a proposed technical cooperation agreement between them. The two governments will also consider sponsoring an Economic Council composed of prominent American and Saudi participants from the private sector to work together to further the aims of the cooperative arrangements between the two countries. Consideration will also be given to the formation of a U.S.-Saudi Industrial Development Council, which might include government as well as private enterprise representatives.

The U.S. Treasury Department and the Saudi Arabian Ministry of Finance and National Economy will consider cooperation in the field of finance.

Dept. of State Press Release, No. 242, June 10, 1974; Dept. of State Bulletin, Vol. LXXI, No. 1827, July 1, 1974, pp. 10-11.

U.S.-Egypt

On June 14, 1974, President Nixon and President Muhammed Anwar el-Sadat of Egypt signed an Agreement on Principles of Relations and Cooperation between Egypt and the United States (TIAS 7913; 25 UST 2359; entered into force June 14, 1974). Part IV of the Agreement establishes several Joint Working Groups, including the following Groups concerned with providing assistance:

(1) A Joint Working Group on Suez Canal Reconstruction and Development to consider and review plans for reopening the Suez Canal and reconstruction of the cities along the Canal, and the United States role in this endeavor.

(3) A Joint Working Group on Agriculture to study and recommend actions designed to increase Egypt's agricultural production through the use of the latest agricultural technology.

(4) A Joint Working Group on Technology, Research and Development in scientific fields, including space, with special emphasis on exchanges of scientists.

(5) A Joint Working Group on Medical Cooperation to assist the Government of Egypt to develop and strengthen its medical research, treatment and training facilities. These efforts will supplement cooperation in certain forms of medical research already conducted through the Naval Medical Research Unit (NAMRU), whose mutually beneficial work will continue.

In support of their economic cooperation, the United States will make the maximum feasible contribution, in accordance with Congressional authorization, to Egypt's economic development, including clearing the Suez Canal, reconstruction projects, and restoring Egyptian trade. In addition, the United States is prepared to give special priority attention to Egypt's needs for agricultural commodities.

*

*

See also the Dept. of State Bulletin, Vol. LXXI, No. 1829, July 15, 1974, p. 93. See this Chapter, § 4, infra, p. 530; § 8, infra, pp. 570-571; Ch. 12, § 2, infra, p. 642.

U.S.-Jordan

On June 19, 1974, President Nixon and King Hussien of Jordan issued a Joint Statement (TIAS 7885; 25 UST 1510; entered into force June 18, 1974) on relations between the two countries. The two parties agreed, inter alia, to establish a U.S.-Jordanian Joint Commission "at a high level" in order to "oversee and review on a regular

basis the various areas of cooperation between Jordan and the United States in the fields of economic development, trade and investment, military assistance and supply, and scientific, social and cultural affairs."

The Joint Commission was formally established in August 1974. It sponsors meetings on economic development, trade and investment to identify additional areas in which the United States can usefully cooperate in Jordan's development program, to explore possibilities for increased American private participation in Jordan's economy, and to seek ways of increasing trade between the two countries. The Commission also arranges regular meetings on military assistance and supply problems.

U.S.-India

On October 28, 1974, the United States and India signed an Agreement to Establish a Joint Commission on Economic, Commercial, Scientific, Technological, Educational and Cultural Cooperation (TIAS 7947; 25 UST 2807; entered into force October 28, 1974). In the field of economic and commercial cooperation, the tasks of the Commission include (a) the review of matters concerning economic and commercial relations between the two countries; (b) the identification and investigation of areas for closer cooperation, joint studies in areas of common interest and recommendation of programs concerning growth and development through mutual cooperation; (c) recommendations of measures and activities to stimulate two-way trade between the two countries consistent with their international obligations, which may include inter alia the sending of trade promotion missions and trade delegations; (d) the promotion of possibilities of increased investment consistent with the investment policies of the two countries; and (e) exploration of possibilities of enhanced cooperation between financial, industrial and commercial institutions and organizations.

For the full text of the Agreement, see the Dept. of State Bulletin, Vol. LXXI, No. 1848, Nov. 25, 1974, pp. 746-747. See also Ch. 12, §§ 1 and 3, infra, p. 638 and 643.

U.S.-Iran

On November 2, 1974, the United States and Iran agreed to form a Joint Commission designed to increase cooperation over a broad area of political, economic, cultural, defense, scientific, and technological fields (TIAS 7967; 25 UST 3173; entered into force November 2, 1974). The U.S. Secretary of State and the Iranian Minister of Economic Affairs and Finance serve as the co-chairmen of the Com

mission. Its first meeting was held November 2, 1974. It was agreed that a major element in the work of the Commission will be a program in the field of nuclear energy, especially power generation. There will also be expanded cooperation in the fields of agriculture, petrochemical and electronics industries, animal husbandry, telecommunications, highway construction, geology, space technology, education, and social services.

Dept. of State Press Release, No. 463, Nov. 2, 1974.

Transnational Corporations, Foreign
Investment, and Tax Law

Transnational Corporations

On November 13, 1974, J. Wallace Hopkins, Deputy Legal Adviser in the Department of State, and Alternate U.S. Representative to the Special Intersessional Committee of the U.N. Economic and Social Council, made a statement on the role of the United Nations with respect to transnational corporations and international investment. Mr. Hopkins said, in part:

The United States Government believes that the international community, and in particular, the United Nations system can play a constructive role in considering the issues associated with international investment and the role played by transnational corporations in that process. For the foreseeable future, however, we believe the role of the United Nations will be primarily that of support for the efforts by national governments, rather than that of direct regulation of multinational enterprises.

First, I believe that it would be a mistake to organize our discussion or create permanent U.N. machinery upon the assumption that the principal problems we are concerned with are uniquely associated with certain entities called multinational or transnational corporations. There are problems, of course, associated with the activities of these enterprises. However, we believe it would be unfortunate to lose sight of the wider international economic issues, including the broad range of problems associated with foreign investment in general. We should also like to point out that the international economic activities of state-owned enterprises also have an important impact on development and on international relations. Attention needs to be given to the effects of such enterprises as well as those of private enterprises based in both developed and developing countries.

The other point I would like to make is that the Eminent Persons' Report and some of the discussion which has taken place in this Committee reflect, in our opinion, some misunderstanding of the

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