3. Should post-Franco Spain be included in the Alliance?

4. Should the Alliance be more concerned with problems and events heretofore considered by the West European member governments to be outside NATO's mission?

In my personal view, with respect to the issue of Communist influence in NATO governments, I believe it is much too early to panic. Events in Portugal have not shown, thus far, that NATO is in imminent danger of losing that government's participation. As for Italy, I recommended in a report to the House Committee on International Relations that:

"US policy in Italy must take into account the growing political significance of the Italian Communist Party in the fact of the continued inability of the other political parties to make any meaningful progress toward solving Italy's worsening economic and social problems. We can no longer pretend that the PCI does not exist, officially. The attitude of the PCI toward the United States just might be influenced to some extent by our attitude toward the PCI. A long hard and honest look should be given to the PCI to determine their true degree of independence from the Communist Party of the Soviet Union (CPSU)."

In the final analysis the Italian electorate must make these decisions and determinations themselves.

With respect to NATO's apparent inability to deal with such destructive intramural conflicts as the Greek-Turkish dispute, I have long been concerned with the inability of the Alliance to have a positive influence on problems outside the military sphere. Its institutional inertia has virtually hamstrung the Alliance's ability to cope with the Arab oil embargo, for example. If the Alliance is to remain a credible force in today's world, this inertia and narrowness must be overcome.

On the question of Spain, it is my view that, with the passing of Franco, the emergence of a more moderate government, and the signing of a US-Spain base rights treaty, Spain should be brought in to NATO to shore up the Alliance's southern tier.

JOINT ACTION NEEDED

Finally, I believe very strongly that the NATO parliamentary members, as a bloc, and as individual delegations should become more conscious of a responsibility to praise those activities of governments or of popular movements that move a country toward freedom, and condemn those actions that the Alliance sees as hostile to their stated beliefs. It is not enough for you to expect the US to be a leader in such fashion, and to fail to take such actions yourself.

In a democracy such as exists in the US, you are quick to note the opposing policies of the Ford Administration and Mr. Kissinger on one side, and the Congress on the other.

President Ford wants to help Angola. The Congress does not. The Congress does not like some of the more peculiar digressions of the CIA. The President tries to defend them. In a country the size of ours, whatever else all this means, it at least means this:

(a) We mean to protect our hard won liberties even from our own excesses on occasion.

(b) In a truly free society, other nations may look through wide open windows to see the way we live.

I am not overly embarrassed by our internal bickering. You should not be either. In fact, it would be good for Third World nations to see that we can do this and still remain strong. The American voter would like to be sure that NATO countries share those beliefs. Proof does not necessarily come from internal example, but by being more active in openly questioning Soviet bloc failures, for example.

I have heard from many of my distinguished colleagues at these conferences that you need America to provide an example. A noble and challenging thoughtmay I reply in the same vein? American citizens need to hear Europeans proclaim their belief in free enterprise and free elections. This is not to say that you do not do so now, and have not done so. But like any jealous lover, we need constant reassurance of your affections, too. Perhaps it is just that you need to speak up more loudly for those of us who live on the far side of America. Distance may make us slightly deaf-but still in need of reassurance, too.

I put forth these issues and views for the consideration of my fellow parlia mentarians and welcome your reactions.

Friday, April 23, 1976, Morning

FINAL SESSION

Before the press conference the two Delegations evaluated the results of the Working Sessions during this Ninth Interparliamentary Meeting, and unanimously expressed their satisfaction with both the organizational and substantive parts of the programme.

The American Delegation renewed the formal invitation to the European Parliament to send a Delegation to Washington for the next, and Tenth, Interparliamentary Meeting. It also renewed Congressman Paul Findley's (Republican, Illinois) invitation for this Delegation to participate in the celebrations of the bi-centennial of the Independence of the United States, by visiting Springfield, Illinois, the city where Abraham Lincoln was active before he was elected President of the United States. The time for the next meeting would be September 1976. (69)

APPENDIX

DECLARATION OF OECD MEMBER GOVERMENTS ON INTERNATIONAL INVESTMENT AND MULTINATIONAL ENTERPRISES

(As approved by the member governments on June 21, 1976 in Paris)

THE GOVERNMENTS OF OECD MEMBER COUNTRIES

CONSIDERING

That international investment has assumed increased importance in the world economy and has considerably contributed to the development of their countries; That multinational enterprises play an important role in this investment process;

That co-operation by Member countries can improve the foreign investment elimate, encourage the positive contribution which multinational enterprises can make to economic and social progress, and minimize and resolve difficulties which may arise from their various operations;

That, while continuing endeavours within the OECD may lead to further international arrangements and agreements in this field, it seems appropriate at this stage to intensify their co-operation and consultation on issues relating to international investment and multinational enterprises through inter-related instruments each of which deals with a different aspect of the matter and together constitute a framework within which the OECD will consider these issues :

I.

DECLARE

That they jointly recommend to multinational enterprises operating in their territories the observance of the Guidelines as set forth in the Annex hereto having regard to the considerations and understandings which introduce the Guidelines and are an integral part of them.

II.

(1) That Member countries should, consistent with their needs to maintain public order, to protect their essential security interests and to fulfill commitments relating to international peace and security, accorded to enterprises operating in their territories and owned or controlled directly or indirectly by nationals of another Member country (hereinafter referred to as "ForeignControlled Enterprises") treatment under their laws, regulations and administrative practices, consistent with international law and no less favorable than that accorded in like situations to domestic enterprises (hereinafter referred to as "National Treatment").

(2) That Member countries will consider applying "National Treatment" in respect of countries other than Member countries.

(3) That Member countries will endeavor to ensure that their territorial subdivisions apply "National Treatment".

(4) That the Declaration does not deal with the right of Member countries to regulate the entry of foreign investment or the conditions of establishment of foreign enterprises.

III.

(1) That they recognize the need to strengthen their co-operation in the field of international direct investment.

73-026-76—7

(2) That they thus recognize the need to give due weight to the interests of Member countries affected by specific laws, regulations and administrative practices in this field (hereinafter called "measures") providing official incentives and disincentives to international direct investment.

(3) That Member countries will endeavor to make such measures as transparent as possible, so that their importance and purpose can be ascertained and that information on them can be readily available.

IV.

That they are prepared to consult one another on the above matters in conformity with the Decisions of the Council relating to Inter-Governmental Consultation Procedures on the Guidelines for Multinational Enterprises, on National Treatment and on International Investment Incentives and Disincentives.

V.

That they will review the above matters within three years with a view to improving the effectiveness of international economic cooperation among Member countries on issues relating to international investment and multinational enterprises.

ANNEX

GUIDELINES FOR MULTINATIONAL ENTERPRISES

1. Multinational enterprises now play an important part in the economies of Member countries and in international economic relations, which is of increasing interest to governments. Through international direct investment, such enterprises can bring substantial benefits to home and host countries by contributing to the efficient utilization of capital, technology and human resources between countries and can thus fulfill an important role in the promotion of economic and social welfare. But the advances made by multinational enterprises in organizing their operations beyond the national framework may lead to abuse of concentrations of economic power and to conflicts with national policy objectives. In addition, the complexity of these multinational enterprises and the difficulty of clearly perceiving their diverse structures, operations and policies sometimes give rise to concern.

2. The common aim of the Member countries is to encourage the positive contributions which multinational enterprises can make to economic and social progress and to minimize and resolve the difficulties to which their various operations may give rise. In view of the transnational structure of such enterprises, this aim will be furthered by cooperation among the OECD countries where the headquarters of most of the multinational enterprises are established and which are the location of a substantial part of their operations. The guidelines set out hereafter are designed to assist in the achievement of this common aim and to contribute to improving the foreign investment climate.

3. Since the operations of multinational enterprises extend throughout the world, including countries that are not Members of the Organization, international cooperation in this field should extend to all States. Member countries will give their full support to efforts undertaken in cooperation with non-Member countries, and in particular with developing countries, with a view to improving the welfare and living standards of all people both by encouraging the positive contributions which multinational enterprises can make and by minimizing and resolving the problems which may arise in connection with their activities. 4. Within the Organization, the program of cooperation to attain these ends will be a continuing, pragmatic and balanced one. It comes within the general aims of the Convention on the Organization for Economic Cooperation and Development and makes full use of the various specialized bodies of the Organization, whose terms of reference already cover many aspects of the role of multinational enterprises, notably in matters of international trade and payments, competition, taxation, manpower, industrial development, science and technology. In these bodies, work is being carried out on the identification of issues, the improvement of relevant qualitative and statistical information and the elaboration of proposals for action designed to strengthen inter-governmental cooperation. In some of these areas procedures already exist through which issues related