the American Republics, which was held in Panama, September 23October 3, 1939, adopted a "Final Act" embodying a Resolution on "Economic Cooperation" which reads in parts as follows:

The meeting of the Foreign Ministers of the American Republics, Resolves: 1. In view of the present circumstances, to declare that today it is more desirable and necessary than ever to establish a close and sincere cooperation between the American Republics in order that they may protect their economic and financial structure, maintain their fiscal equilibrium, safeguard the stability of their currencies, promote and expand their industries, intensify their agriculture and develop their commerce.

2. To create an Inter-American Financial and Economic Advisory Committee consisting of twenty-one (21) experts in economic problems, one for each of the American Republics, which shall be installed in Washington, D. C., not later than November 15, 1939, and which shall have the following functions:

* *

Among the functions ascribed to the international committee thus created were the following:

(d) To study and propose to the Governments the most effective measures for mutual cooperation to lessen or offset any dislocations which may arise in the trade of the American Republics and to maintain trade among themselves, and as far as possible, their trade with the rest of the world, which may be affected by the present war, on the basis of those liberal principles of international trade approved at the Seventh and Eighth International Conferences of American States and the Inter-American Conference for the Maintenance of Peace.

*

(g) To study measures which tend to promote the importation and consumption of products of the American Republics, especially through the promotion of lower prices and better transportation and credit facilities.

The same "Final Act" also made certain recommendations to the Governments of the American Republics, especially:

(a) To take measures in accordance with their own respective legislation, with a view to avoiding increases of rates or premiums to an extent not justified by the special expenses and risks incurred because of the present state of war, by shipping companies which maintain transportation services between the countries of the continent, and marine insurance companies operating in their territories.

(c) To study the possibility of reducing to a minimum consular fees on manifests of vessels in the above-mentioned services, so as to make possible the shipment of reduced quantities of commodities which require rapid and special transportation. (d) To study the possibility, in accordance with their legislation, of reducing to a minimum port, sanitary and other formalities applied to the traffic of merchandise between the American Republics.

The Inter-American Financial and Economic Advisory Committee, which was set up pursuant to that resolution, created certain subcommittees including Subcommittee No. III, which was charged with the consideration of "problems of an individual and urgent character."

To that subcommittee were referred, for consideration, communications from two of the American Republics relating to maritime matters.

The first of these communications was from the Government of Cuba and suggested that the committee "arrange a conference of representatives of shipping companies and of maritime experts of the Governments of the nations of the Western Hemisphere for the purpose of (1) maintaining reasonable freight rates and (2) distributing in a just and equitable manner the cargoes transported between the various countries of the American continent." The second communication was from the Government of Venezuela. It suggested (a) that a study be made of the possibility of establishing an inter-American "prohibition" of certain maritime practices, (b) that reductions of port dues and charges on ships and commerce be brought about by some sort of agreement comprehending corresponding reductions of freight and passenger rates, and (c) that a study be made of the possibility of "establishing an Inter-American Commission on Maritime Services to study and recommend improvements which would make ocean transportation more economical and to revise freight and passenger rates." Preliminary discussions of those two proposals by the members of Subcommittee No. III and between them and representatives of the United States Maritime Commission led to the general agreement on the following: (1) That before any definite conclusions or recommendations regarding these matters could be formulated by the subcommittee it would be necessary to assemble a fund of information and data regarding many important aspects of the numerous practical problems implicit in the two proposals; (2) that such information and data should reflect the relevant circumstances, conditions, and views obtaining in all of the American Republics; (3) and that the most expeditious and effective procedure to this end would be the convocation of an inter-American maritime conference at which representatives of the various nations might discuss and consider the general subjects on the basis of material thoroughly prepared in advance.

While these matters were being considered by Subcommittee No. III, the United States Maritime Commission consulted with the Department of State and with The Executive Committee on Commercial Policy regarding the matter and, on June 28, 1940, submitted, for the information of Subcommittee No. III, a memorandum relative to the two above-mentioned proposals "and other shipping matters."1 This memorandum concluded with the following paragraph:

The Maritime Commission is in complete accord with the efforts of the InterAmerican Financial and Economic Advisory Committee to bring about a closer commercial relationship between the American Republics. Shipping has an important place in such a program and it is apparent from the Cuban and Venezuelan proposals and from the replies thereto which have been made by various of the other American Republics that there are important water transportation problems which warrant joint consideration. The United States Maritime Commission therefore suggests that the subjects raised by the Cuban and Venezuelan

1 Annex 1.

proposals and by the replies made thereto by the other American Republics be made the subject of discussions by technical experts in a conference to be arranged under the supervision of Subcommittee III of the Inter-American Financial and Economic Advisory Committee. These technical experts should be designated by the various Governments to represent not only the Governments but the shipping companies which would be concerned. The Maritime Commission will be happy to designate experts to assist the members of Subcommittee III to arrange an agenda for discussion at such a conference and to cooperate in the work of such a conference by furnishing statistical data or such other information as may be called for.

Subcommittee No. III decided to recommend to the Inter-American Financial and Economic Advisory Committee the calling of a conference such as had been suggested and to submit to the parent committee, for consideration in that connection, a suggested agenda for the proposed conference together with an "explanatory text” indicating the nature and scope of the subjects to be included therein.

The suggestion for an international conference having been approved, the Chairman of the Inter-American Financial and Economic Advisory Committee invited the Foreign Ministers of all of the American Republics to send expert representatives to an InterAmerican Maritime Conference to be convened in Washington on October 2, 1940, "to discuss maritime problems of mutual interest and to formulate conclusions which may be satisfactory to all interested parties." Each Foreign Minister was also requested "to extend this invitation to the national steamship companies serving your country, it being understood that the representatives of those companies shall attend in an advisory capacity."

PREPARATION FOR THE CONFERENCE

The topics included in the Agenda for discussion by the Conference were the following:

1. Transportation of commerce of the Nations of the Western Hemisphere needs and means of facilitating.

2. Effect of present war on shipping of the Americas.

3. Passenger and tourist travel between Nations of the Western Hemisphere-needs, present opportunities, and possible means of realizing.

4. Ocean freight rate problems-self-regulation-Government regulation.

5. Port dues, charges, taxes, and other imposts on shippingdesirability of uniformity-possibilities of reductions.

6. The equitable distribution of cargoes in inter-American tradepooling of freights.

7. National merchant marines-exchange of views as to needs and means used to develop.

8. Study of methods of harmonizing Government shipping statistics and possibilities of reducing their cost.

9. Consideration of suggestions for a continuing procedure for dealing with shipping problems of the Americas.

The United States Maritime Commission and the Department of State, immediately began the preparation of data to be submitted. to the Conference. Subsequently the opening of the Conference was postponed from October 2 to November 25, 1940.

As a result of the above-mentioned preparations, there was ready for delivery to each of the delegates at the opening of the Conference a comprehensive study submitted by the delegates of the United States on each of the topics of the agenda, except on No. 9, which was omitted since it was considered that the course of the Conference's discussion of the earlier topics would determine its approach to this final topic. There had also been prepared for the information of the delegates a handbook containing general data regarding the merchant marine of the United States, the laws of the United States relating to shipping, general information regarding the organizations and functions of the United States Maritime Commission, etc. During the proceedings, Max O'Rell Truitt, Esq., one of the undersigned delegates of the United States, presented a paper dealing with constitutional limitations affecting the foreign commerce and shipping of the United States. All of these documents were translated and delivered to the delegates in Spanish and Portuguese as well as in English. Annexed to this report is a copy of the handbook and of each of these preparatory studies.3

PROCEEDINGS OF THE CONFERENCE

The Conference met in the Hall of the Americas of the Pan American Union at 10 a. m. on Monday, November 25. After 10 sessions, it concluded its labors on Monday, December 2, 1940. A copy of the secretary general's record of the proceedings of the conference, which includes a list of the official delegates and their technical advisers as well as a list of the representatives of the shipping interests who attended, is annexed to this report.*

The Conference proceedings may be briefly summarized as follows: The address of welcome, on behalf of the Inter-American Financial and Economic Advisory Committee, was delivered at the inaugural session of November 25, by the Honorable Sumner Welles, Under Secretary of State of the United States and Chairman of that Committee. Response was made by Dr. Ramiro Guerra, also a member of the Inter-American Financial and Economic Advisory Committee and one of the Cuban delegates to the Conference. Dr. Leo S. Rowe,

Annex 11, p. 458.

Annexes 2, 3, 4, 5, 6, 7, 8, 9, 10.

• Annex 11.

Annex 11, p. 356.

Annex 11, p. 362.

Director General of the Pan American Union, then extended a welcome to the Conference on behalf of himself and the Union. The first undersigned was then elected permanent chairman and the Honorable Héctor David Castro, Minister of El Salvador (also a member of the Inter-American Financial and Economic Advisory Committee and one of the delegates of his Government to the Conference) was elected vice chairman of the Conference.

In view of the fact that many of the countries were represented by but one delegate each, and the fact that various of the topics on the agenda were closely interrelated and many of the delegates were interested in most if not all of them, it was decided that the discussions. should proceed in plenary sessions, leaving the question of appointing subcommittees to be determined as might be found expedient in the course of the discussions.

As the Conference proceeded to the discussion of the topics on the agenda, representatives of the United States Maritime Commission and of the Department of State presented oral summaries of the material prepared in advance on each of the topics, as described above. In the course of the general discussion of the basic information and data thus supplied and augmented by the contributions of other delegations, various proposals of varying scope and character were introduced by individual delegations. A total of 38 proposed resolutions or suggested projects were submitted for the consideration of the Conference. At the end of the general discussions of the topics comprising the agenda, these proposals were referred to a committee on resolutions for coordination.

This committee consisted of the official delegations of Brazil, Chile, El Salvador, Haiti, Nicaragua, United States of America, and Venezuela.

In the course of its work of coordinating the suggested projects and resolutions, the committee on resolutions invited those delegates who were especially interested in particular subjects but who were not included in the membership of the committee to appear and present their views orally. That privilege was availed of by several of the delegates. After deliberations extending through the major portions of 2 days (November 29 and 30), the chairman of the committee submitted a report, accompanied by the draft of a proposed 'Final Act" of the Conference embodying 12 proposed resolutions. These resolutions were designed to include the substance of most of the individual proposals which had been submitted, and to give expression to the general consensus of the Conference. The committee sought to formulate them in the shape of practical proposals

↑ Annex 11, p. 361.

• Annex 11.

Annex p. 469.