the industrially undeveloped countries as compared with that in the manufacturing centers had already reduced the protection afforded by specific duties. A further view was that present tariffs are a fiscal necessity for many of the countries. Particular exception was taken to the multilateral method of trade-barrier reduction on the grounds that such a method was impracticable.

The United States Delegation maintained that freer access to world markets as a result of multilateral action is of prime importance for maintaining the export trade of the American republics and that economically sound new and old industries could be legitimately protected. As the various views could not be reconciled on this question, the original wording of the draft resolution introduced by the United States Delegation was modified to state merely that the countries aspired to find practical formulas to reduce detrimental trade barriers. The second major change in the original draft of the resolution as presented by the United States Delegation related to a declaration against the creation of state trading enterprises. Opinion differed on this point and, as no agreement appeared possible, the declaration in the proposal that the American republics would "refrain from the establishment of state enterprises for the conduct of trade" was omitted from the final document.

A further change in the resolution was the addition to the statement of principle, "Elimination of Excesses of Economic Nationalism" of the clause "including excessive restriction of imports and the dumping of surpluses of national production in world markets.” Special emphasis was laid by several delegations on the harmful effects in international trade of the subsidization of exports and on the difficulty of reconciling this practice with liberal commercial policies. After some discussion it was agreed, with the concurrence of the United States Delegation, to include in the Charter the provision in question.

There were also raised, during the subcommittee discussions on the drafting of this document, questions relative to commodity agreements, production subsidies on synthetic products, the conserving of exchange balances accumulated during the war and their use for the purchase of producers' rather than non-essential consumers' commodities, and the financing of industries. These subjects were in the main either covered by separate resolutions or left for future consideration or for bilateral negotiations.

Sale and Distribution of Primary Products (Resolution XLVI). This resolution relates to the disposal of accumulated surpluses of primary products and recommends that in exceptional cases when burdensome surpluses of important primary products have developed or threaten to develop, agreements be entered into by producing and consuming countries for the orderly movement of the products to

world markets. Such agreements should have as their objective the expansion of consumption and a readjustment of production, taking into account the interests of consumers and producers as well as the requirements of an expanding world economy.

The resolution was based primarily on a proposal (62, app. II) offered by Mexico and suggestions contained in projects presented by Bolivia (36, app. II), Venezuela (79, app. II), Brazil (109 and 142, app. II), Cuba (134, app. II), and Guatemala (176, app. II). In its original form and as first approved by Subcommittee A, the resolution would have made international commodity agreements a normal means of moving all primary products to world markets instead of being a temporary means of dealing with large surpluses in respect of a few commodities. This plan would have been seriously at variance with established international trade policies. At the suggestion of the United States Delegation, the resolution was changed to provide that commodity agreements should be viewed as temporary and emergency expedients for dealing with burdensome surpluses and that their use should be closely limited both in time and in respect of the number of commodities involved, with full protection to the interests of consumer countries and progressive adjustment of production as between efficient and inefficient producers.

Industrial Development (Resolution L). One of the resolutions supplementary to the Economic Charter adopted by the Conference is the resolution relating to industrial development and the cooperative measures that should be taken to encourage such development in the several countries. The resolution maintains that economically sound new industries and the improvement and expansion of existing sound industries should be promoted primarily through private enterprise. As a means to this end there are recommended: ratification of the Bretton Woods proposals; provision of long-term credits by countries in which there are ample supplies of capital; free movement and investment of capital with equal treatment to national and foreign capital; participation of domestic with foreign capital in the establishment and management of private enterprises; equal access to raw materials and to producers' goods needed for industrialization; and increased cooperation in training of technical personnel, interchange of technical experts, and facilitation of reciprocal use of patents.

A draft introduced by the United States Delegation (97, app. II) was the basis for this resolution, though in its final form it draws on provisions in many other proposals, including the following: Chile (53, app. II), Colombia (57, app. II), Mexico (60, app. II), Cuba (135, app. II), Brazil (138, 144, and 146, app. II), Ecuador (151, app. II), Costa Rica (160, app. II), and Guatemala (170, app. II). During the preparation of this document, the United States Delegation re

affirmed its assurance of assistance in every way possible to sound economic development and industrialization of the other American republics.

In the discussions of Subcommittee A regarding this resolution, strong support was evidenced by several of the Latin American delegations for the establishment of an inter-American institution for making long-term loans to finance development projects and programs. In this connection, pronounced misgivings were expressed regarding the availability in practice to the American countries of the resources and facilities of the proposed International Bank. It was felt, despite formal assurances written into the Bank agreement itself, that the funds of that institution would be used in the first instance to finance the reconstruction of war-devastated countries and that in any case an institution dominated by non-American states would not understand the special problems of Latin America. The United States Delegation was unable to support the suggestion for the establishment of this special inter-American institution and it was agreed that the matter be dropped.

There was extended negotiation over the clause in point 4 in the resolution under which the American republics "undertake to grant equal treatment to the securities issued and placed by national organizations and institutions and to those issued by organizations and institutions that operate under the laws of the other American nations." The United States delegation finally agreed to this wording but entered a reservation in the proceedings of the Conference indicating the legal and other limitations to the carrying out of this undertaking by this country.

Measures for Preventing Unemployment (Resolution XLVII). This resolution recommends that the American republics draw up detailed plans, including programs for useful and productive public works, for preventing unemployment. It is based on a resolution introduced by Chile (52, app. II) which was adopted after redrafting so as to mention projects other than public works.

Inter-American Transportation (Resolution XLVIII). This resolution emphasizes the necessity of improving, extending, and reducing the cost of maritime transportation among the American republics.

The final resolution as approved by Committee IV is a synthesis of many proposals including those by Mexico (64, 72, and 73, app. II), Venezuela (77, app. II), Colombia (81, app. II), Panama (107, app. II), Peru (119, app. II), and Cuba (133, app. II). Because of its omnibus character there were naturally a great variety of views expressed during the consideration of this resolution, most of which are reflected in the draft resolutions on the subject introduced by the delegations mentioned.

Work of Inter-American Development Commission (Resolution XLIX). The continued support by the governments of the American republics of the Inter-American Development Commission and the National Commissions of Inter-American Development is recommended by this resolution. It is a project introduced by Costa Rica (147, app. II) which was approved practically without change.

Exchange of Information Concerning Measures of Economic Control (Resolution LII). This resolution provides for the exchange of information among American republics regarding natural and juridical persons who, for reasons of American defense and security, should not be permitted to continue their commercial and financial activities. The resolution was adopted during the latter stages of the work of Committee IV and is based on a proposal (82, app. II) introduced by Uruguay.

Meeting of Monetary Authorities (Resolution LIII). The resolution recommends that, until such time as the Bretton Woods agreements enter into force, the monetary authorities of the American nations arrange to meet to study economic and monetary problems of mutual concern. It is based on a draft resolution introduced by Chile (50, app. II). This provided for the meeting of the representatives of central banks of the American republics. The United States Delegation pointed out that there was no provision in the Chilean proposal for representation of countries, including the United States, which have no central banks. It also expressed the view that such meetings were not clearly needed and would only duplicate the functions of the proposed Monetary Fund. The draft resolution was altered on the basis of these objections and the meeting of the monetary authorities was made contingent upon the entrance into force of the Bretton Woods agreements.

The following projects were not specifically considered by Subcommittee A, as they were covered by other resolutions approved by Committee IV: "Production and Marketing of Raw Materials" (36, Bolivia, app. II); "American Industrialization Plan" (53, Chile, app. II); "Tariff Protection for Industries" (57, Colombia, app. II); "Increase of Agricultural Production and Consumption" (66, Dominican Republic, app. II); "Strengthening of Basic Economic Activities" (137, Brazil, app. II); "Customhouse Tariffs" (140, Brazil, app. II); "Indices of National Income and Standards and Costs of Living" (145, Brazil, app. II); "Revision of Customs Tariffs" (164, Brazil, app. II); “Appointment of a Permanent Delegation" (168, Mexico, app. II).

The following draft resolutions were withdrawn: "Elimination of Subsidies to Production" (51, Chile, app. II); "Economic Coordination of Continental Resources" (59, Mexico, app. II); "Creation of

Inter-American Finance Company" (61, Mexico, app. II); "Construction of Pan-American Highway" (158, Costa Rica, app. II).

Two resolutions, "Organization for Postwar Transportation" (77, Venezuela, app. II), and "Permanent Inter-American Financial and Economic Advisory Committee" (125, Honduras, app. II) were referred to Committee III.

SUBCOMMITTEE IV B: Social Questions

Originally, ten projects were referred to Subcommittee B of Committee IV, including a Bolivian resolution (56, app. II) proposing the organization of an Inter-American Economic and Social Council which was referred to the Committee on Initiatives with the recommendation that it be considered by Committee III. The remaining nine projects (34, Mexico; 56, Bolivia; 95, United States; 96, United States; 67, Dominican Republic; 85, United States; 90, Mexico; 91, Mexico; 136, Brazil; 157, Brazil; app. II) dealt with health, social security, social questions, labor, women and children, and measures for the improvement of the conditions of mankind.

Two other projects were considered by this Subcommittee: a resolution on labor, introduced by Mexico, and a declaration on social principles, by the Chairman of the Subcommittee. In addition, the reports approved by the Committee cover, in the field of social questions, a resolution presented by Uruguay (84, app. II), referred originally to Subcommittee A, which dealt with legislation concerning labor and international commerce.

All the proposals contained in the projects considered by Subcommittee B were incorporated, with revisions, in the five final resolutions prepared by this group. These were:

Declaration of the Social Principles of America (Resolution LVIII). The most important instrument drawn up by Subcommittee B was the declaration on social principles, which is in effect the counterpart in the social field of the Economic Charter of the Americas in the economic field. The Declaration is an amalgamation of proposals contained in the original projects submitted by Brazil (136, app. II), Mexico (157, app. II), the Dominican Republic (67, app. II), and the United States (96, app. II). Provisions from projects submitted by other countries were also included.

The Declaration proclaims basic principles of social improvement and security and it sets forth detailed recommendations for domestic legislation to implement the principles. In summary, it declares that man should be the center of interest of all peoples and government; that any nation that does not adopt justice and humane labor conditions is an obstacle in the path of other nations; and that poverty, malnutri