and the brutal Soviet military repression of the Hungarian people within the borders of their homeland.86 From the outset of this Administration the United States Ambassador to the United Nations has sat as a member of the President's Cabinet, an arrangement which was inaugurated to strengthen the Ambassador's hand in carrying out his responsibilities. In recent years, there has been a growing clarification of understanding around the world of the real purpose of the Communist leadersto subject all the world to the dominant influence and control of international Communism. In the Middle East, the designs of Communism are now far more clearly realized than a few years ago. Brutal Chinese Communist repression in Tibet 87 and border incursions and demands against India 8s have brought home aggressive Communist designs more clearly to the peoples of South Asia. In Southeast Asia, liberty-loving peoples are struggling successfully to remain masters in their newly built national homes. In Europe, there are a number of inspiring examples of national renewal and recession of Communist influence. F. GROWTH AND INTERDEPENDENCE President Eisenhower's policies have been based on a belief that economic growth and interdependence are necessary conditions for stable and free nations. Here are a number of things that the Eisenhower Administration has done in the last eight years to promote that growth and interdependence: 1. It has strongly supported the Reciprocal Trade Agreements Program. At President Eisenhower's request the Congress in 1958 strengthened and extended this program for a period of four years, the longest single extension during the 25-year history of the program. The value of American foreign trade (excluding military exports) in 1953 was $23.2 billion and in 1959 was $31.5 billion. In 1960 our foreign trade will be over $34 billion. 89 91 2. In 1957 the Congress, at the request of President Eisenhower, established the United States Development Loan Fund.90 The Congress provided an initial appropriation of $300 million. This was a major step to meet the needs of less developed countries for loans on terms less rigorous than those offered from existing sources. In 1958, 1959 and 1960 the Congress appropriated a total of $1.65 billion more for the Development Loan Fund.92 It was the first United States financial institution set up specifically to help less developed countries. In its short life the Fund has made a significant contribution to economic growth. Qualifying projects awaiting its review are far more numerous than the Fund can handle. 80 See ibid., 1956, pp. 462-488; ibid., 1957, pp. 657-708; ibid., 1958, pp. 655-684; and ibid., 1959, pp. 818-837. 87 See ibid., pp. 1162-1178. See ibid., pp. 1189-1192. 89 See ibid., 1958, pp. 1514-1535. 99 See ibid., 1957, pp. 1543–1564. 91 See ibid., p. 1570. 2 See ibid., 1958, p. 1591; ibid., 1959, p. 1669; and post, doc. 396. 3. The United States has also moved vigorously to encourage the flow of private investment to less developed and other free nations. Under the Eisenhower Investment Guarantee Program which provides insurance against noncommercial risks 93 nearly 40 nations have signed agreements and considerably over $200 million in insurance contracts have been issued." The United States has negotiated and sought to negotiate treaties designed to create more favorable conditions for private investment abroad. We have encouraged and assisted the creation in foreign countries of development banks to make loans to private enterprise and of local productivity centers to render that enterprise more productive. We encouraged the creation in 1956 of the International Finance Corporation, as an affiliate of the World Bank, to make investments in private enterprise abroad.95 4. In February 1959, at Presidential request, the Congress authorized $3.175 and $1.375 billion increases in the United States subscriptions to the World Bank and International Fund.96 5. The President also authorized the Secretary of the Treasury to discuss with other governments the possible establishment of an International Development Association, as an affiliate of the World Bank. These discussions were fruitful, the agency has been created,97 and we may expect to see it in operation in the near future, helping to mobilize free world resources to meet the less developed countries' need for financing on flexible terms. The Congress has authorized $320 million and appropriated $74 million as US contribution to this agency.98 6. At United States initiative, eighteen European nations have joined Canada and the United States in reconstituting the Organization for European Economic Cooperation." This organization will permit more effective cooperation in promoting sound economic growth in the free world and in mobilizing the resources of its industrialized members to help the newly-developing lands. 7. The United States took the lead in establishment of an institution to promote economic development in Latin America. On April 9, 1959, the charter of a $1 billion Inter-American Bank was initialed in Washington. The ratification of this agreement by the United States and by all the other American states-except Cuba-has brought into being a sizeable new source of funds for economic development loans to our good neighbors. The Bank's charter also provides for assisting in the development of managerial and technical skills, and the Bank will assist in social development projects where necessary. "Sec. 413 of the Mutual Security Act of 1954, as amended; see American Foreign Policy: Current Documents, 1959, pp. 1622-1626. "See post, doc. 403. 95 See American Foreign Policy: Current Documents, 1956, pp. 213–234. "See ibid., pp. 221-225, and post, doc. 50. * See the unnumbered title which precedes doc. 50, post, and 74 Stat. 514. 99 See post, docs. 135-141. 1See American Foreign Policy: Current Documents, 1959, pp. 436-484. 2 In the Act of Bogotá (1960) 2 we joined with Latin American states to assist in large-scale attack on the problem of improving living standards. The Congress has authorized $500 million for financing social development activities in this area.3 8. In August 1958, President Eisenhower offered the cooperation of the United States in the establishment of an Arab regional development financing program if the Middle Eastern states concerned were prepared to support such a venture. Exchanges of views among these states have taken place and the initiative now lies with them. 9. A Common Market for Europe has long been officially supported by President Eisenhower and in January 1958 the six-nation Common Market of Western Europe became a reality. Measures have also been taken to create an area of freer trade among seven other nations of Western Europe. In addition, Western European currencies have become more freely exchangeable and there is a strong movement for broader economic cooperation in Western Europe. The support of the United States played no small part in these accomplishments. 7 9 10. The United States has also moved to encourage and participate in the study of key raw material problems of particular concern to less developed countries. Through our good offices and on our initiative, the International Coffee Study Group was established in June 1958 to consider possible means of dealing with problems arising in international trade of coffee. Through this study group the Mexico City Emergency Coffee Agreement was continued and expanded to consider the present imbalance in world coffee supply and demand. The United States encouraged the establishment of the new International Coffee Agreement in 1959.10 It also participated in the organization of the International Lead and Zinc Study Group in 1959; 11 it is a member of this study group, as well as all of the other international commodity study groups which deal with rubber, cotton, wool, rice, grains, citrus fruits, cocoa, olive oil, and coconuts and coconut products. The United States at the ECOSOC meeting in July 1958 agreed also to become a member of the Commission on International Commodity Trade,12 which considers general problems relating to international trade in basic commodities, and has continued its active participation in this Commission. 11. On the initiative of President Eisenhower an International Food for Peace Conference was held in May 1959 13 to discuss ways 2 See post, doc. 124. 3 See sec. 2 of P.L. 86-735, approved Sept. 8, 1960; 74 Stat. 869; post, doc. 123. See American Foreign Policy: Current Documents, 1958, pp. 1032-1039. * See ibid., 1957, pp. 426-518. 6 See ibid., 1958, pp. 539-557; ibid., 1959, pp. 529–575; and post, doc. 142. 7 See American Foreign Policy: Current Documents, 1959, pp. 531-532. 8 See ibid., 1958, pp. 413-415. 9 Signed at Mexico City Oct. 18, 1957. 10 Signed at Washington Sept. 24, 1959; entered into force Oct. 1, 1959. "Established at a May 4-6, 1959, meeting of representatives of major importing and exporting countries, held at U.N. Headquarters; see U.N. doc. E/CONF.31/1. 12 See the Department of State Bulletin, Sept. 1, 1958, pp. 358-360. 13 See American Foreign Policy: Current Documents, 1959, pp. 1489-1492. and means of utilizing wheat to relieve hunger and to promote economic development among the less developed countries of the free world. This Conference established a Food for Peace Wheat Utilization Committee to consider specific problems, such as how to make more effective use of wheat in improving living standards. This committee has since held several meetings, and other wheat exporting countries have expressed their willingness to cooperate to the fullest possible extent in carrying out the objectives of the Food for Peace program. The President proposed further action to fulfill this program in his September 1960 appearance before the United Nations General Assembly.14 12. The President's address at the United Nations also contained a five-point program designed to promote the security and the economic well-being of the new African nations. 13. Parallel with these new initiatives, the Eisenhower Administration has continued vigorously to support and strengthen the Mutual Security Program, which provides economic and military aid to free countries around the world. 14. The Administration has moved energetically to deal with our unfavorable balance of payments with other nations.15 We have constantly and forcefully urged the removal of trade restrictions on American goods. By the end of 1960 most of our trading partners had removed discrimination and had taken significant steps to reduce quantitative restrictions against our exports.16 In conclusion, President Eisenhower's foreign policy has rested on two simple propositions: Peace, liberty, and well-being for the United States. This depends in good part on the peace, liberty, and wellbeing of other nations. I submit this brief summary to highlight the specific efforts made during the last eight years to achieve our foreign policy objectives. The condition of the world, as outlined in the opening paragraphs, still leaves much to be done if these objectives are to be achieved. Serious tensions must still be relieved, and legitimate human needs still remain to be met. The courses charted in the past eight years should provide the basis for continuing progress to this end. 14 Post, doc. 18. 15 See post, docs. 378-380. 16 See post, doc. 389. Part II THE UNITED NATIONS, SPECIALIZED AGENCIES, AND DEVELOPMENTS IN INTERNATIONAL LAW [NOTE: The initial section of this part carried in previous volumes in the Current Documents series under the title "United States Participation in the United Nations" and consisting of the text of the President's letter transmitting his annual report to the Congress on U.S. participation in the U.N. is omitted from this 1960 volume. The letter by which President Kennedy transmitted (for his predecessor) the 1960 report departed from the custom of summarizing the principal developments in the United Nations and the role of the United States in these developments.] A. Review and Improvement of the United Nations Machinery REQUEST FOR REMOVAL OF THE DOMESTIC JURISDICTION RESERVATION TO THE UNITED STATES ACCEPTANCE OF THE COMPULSORY JURISDICTION OF THE INTERNATIONAL COURT OF JUSTICE: Statement Made by the Secretary of State (Herter) Before the Senate Committee on Foreign Relations, January 27, 19601 4. THE QUESTION OF THE COMPOSITION OF THE UNITED NATIONS TRUSTEESHIP COUNCIL: Explanatory Memorandum of the U.N. Secretary-General (Hammarskjold), Submitted August 21, 1960 2 'Department of State press release No. 41 (text in the Department of State Bulletin, Feb. 15, 1960, pp. 227-231). See also American Foreign Policy: Current Documents, 1959, pp. 50-58 and 65-69, and Compulsory Jurisdiction [of the] International Court of Justice: Hearings [Before the Committee on Foreign Relations, U.S. Senate], 86th Congress, 2d Session, on S. Res. 94, January 27 and February 17, 1960. On Mar. 29, 1960, the Committee on Foreign Relations, in executive session, voted 9 to 8 to postpone further consideration of S. Res. 94. 'U.N. doc. A/4448. |