practicable in advance, actions which we might take in disposing of our agricultural surpluses that might adversely affect their interests. With respect to trade restrictions, the Delegation indicated that the United States is prepared, within the limits of the authority established by Congress,' to negotiate on a reciprocal basis for a gradual, selective reduction of trade barriers. The Delegation pointed out that it was the intention of the Administration during the coming session of Congress to press for the trade program recommended by the President during the past session. The Delegation also indicated that the United States is prepared to consider, on their merits, proposals made on Latin American initiative looking toward regional trading arrangements, provided they meet certain criteria, especially provision of the maintenance of truly competitive conditions within any trading area that may be established.

2

Regarding financing of economic development, the Delegation pointed out that the earnings from foreign trade provide the largest source of funds for Latin America's acquisition of capital equipment from abroad and that maintenance of a high level of United States economic activity has facilitated a large volume of trade between Latin America and the United States. The Delegation emphasized that private investment makes up a major part of the international flow of capital for economic development purposes, and that private investment must be attracted by satisfactory treatment. With respect to increasing the amount of public capital available to the Latin American countries, the Delegation referred specifically to our intention of intensifying and increasing the activities of the Export-Import Bank, and it pointed out that the Executive branch planned to seek authorization from Congress to participate in the proposed International Finance Corporation. It stated that with this new organization sources of credit would be available for all sound projects for which external public financing would be required, within the capacity of the borrowing country to service such financing.

The conference also dealt with a number of topics of a less controversial nature-transportation, tourism, technical cooperation, and certain organizational matters on which the United States Delegation and the delegations of the other American republics found little basic difficulty in reaching agreement. The United States Delegation presented a program in the fields of transportation and tourism the adoption and implementation of which should help improve interAmerican transportation facilities, reduce transport costs and provide the other American republics with increased income from tourists. It also indicated the willingness of this Government to broaden and strengthen the bilateral technical cooperation program and to increase the United States contribution to the technical cooperation program of the Organization of American States from $1 million for calendar year 1955 to $1 million for calendar year 1956, if such

1 See infra, pp. 2888-2892 and 2893-2898.

2 See infra, pp. 2930-2940.

See Treasury Department Announcement, Nov. 11, 1954; Department of State Bulletin, Nov. 29, 1954, p. 814.

increases, under the program, were desired and matched by the other American republics. The Delegation likewise expressed willingness to accept recommendations that had been made in the documentation which had been prepared for the conference by the Inter-American Economic and Social Council suggesting certain organizational changes in the Council and other ways of improving the Council's work.

Notwithstanding the inability of the United States Delegation to agree to some of the proposals advanced by the Latin American delegations, there was recognition of the fact that the United States had gone a considerable distance to meet their viewpoint. This is reflected in the final declaration made by the Ministers of Finance or Economy at the closing session which reads in part as follows:

"We leave this conference with the satisfaction of having proved that the American nations here represented are in complete agreement as regards their great objectives in the economic field. These may be summarized as a determination to speed up the progress of each and every one of them within the framework of freedom and justice, through substantial intensification of our inter-American economic, financial and technical cooperation.

"Naturally, in analyzing the means for obtaining the goal which we are unanimously seeking there were differing points of view as to the most adequate measures for reaching the common objective...

"We are convinced that the results of this economic conference justify holding others of the same kind, and furthermore that the progress which we have here jointly achieved augurs that this Meeting will be the first of a series in which at regular intervals the American Republics meet together to weigh the progress which they have achieved separately and collectively in strengthening that great agricultural, industrial, and financial structure which we are raising in the Hemisphere and under whose protection we shall progress toward that life to which our natural and human resources give us the right to aspire." 1

[INTER-AMERICAN PARTICIPATION IN THE "ATOMS FOR PEACE" PROGRAM] 2

1 Supra.

2 Agreements for cooperation regarding the civil uses of atomic energy have entered into force with the following Latin American countries: Argentina (July 29, 1955); Brazil (Aug. 3, 1955); Chile (Aug. 8, 1955); Colombia (July 19, 1955); Peru (Jan. 25, 1955); Uruguay (Jan. 13, 1956); and Venezuela (July 21, 1955). For a listing of countries within and outside of the Western Hemisphere with which the United States has entered into agreements, see infra, p. 2883, footnote 1.

25. THE PAN AMERICAN HIGHWAY: Letter From the President to the Vice President on the Need for Accelerating the Completion of the Inter-American Highway (With Chart Résumé, by Country) April 1, 1955 (Excerpt) 1

DEAR MR. VICE PRESIDENT: For some time I have had under consideration the desirability of accelerating the completion of the Inter-American Highway which extends from the United States to the Canal Zone via the Central American countries.

The early completion of the Inter-American Highway in close cooperation with the affected countries is a clearly established objective of United States policy.

Although this project has been under construction sporadically since 1934 and the Congress has appropriated funds in the amount of $53,723,000 to date for its completion, the incompleted state of the project prevents realization of maximum benefits.

Recently I have sought the advice of interested agencies of the Government and I am convinced that for economic and political reasons now is the appropriate time to speed completion of the InterAmerican Highway. I believe this would be the most significant single action which the United States can take in Central America and Panama to bring about the most mutually advantageous results. Among the considerations which make me feel that an accelerated construction program on the highway is essential are these:

1. A completed highway will provide a very important contribution to the economic development of the countries through which it passes. 2. There will be an opportunity for increased trade and improved political relations among these countries and the United States.

3. The resultant increase in tourist traffic would not only improve cultural relations but also serve as a very important element in the development of their economies through earnings of foreign exchange. 4. The existence of such an all-weather highway would be of substantial security importance, both in providing overland contact and communication as far southward as the Panama Canal, and in bringing an important physical link between these countries in our common defense of the Western Hemisphere against aggression from without and subversion from within.

The stabilizing effect of these factors will tend to bar any possible return of communism which was so recently and successfully defeated in this area.

Identical letter sent also to the Speaker of the House of Representatives; Department of State Bulletin, Apr. 11, 1955, pp. 595-597. See also statement made by the Vice President on U.S. participation in the construction of the Pan American Highway, at Panamá, Feb. 26, 1955, ibid., pp. 596–597; and map of the principal routes of the Pan American Highway system, ibid., facing p. 596.

It is estimated that the amount needed to complete the InterAmerican Highway in a three-year period is $112,470,000, of which $74,980,000 would be the share of the United States, leaving $37,490,000 as the combined share of the several cooperating countries on the usual 2:1 matching basis.

1 Chart prepared by the Travel Division, Department of Economic and Social Affairs, Pan American Union.

2 Overlapping sections along the alternate routes have been eliminated in totaling the mileage in each country.

Includes branch road to Tegucigalpa, 73 miles.

Includes roads from Bogotá to Panamá, Venezuela and Ecuador.

5 Impassable section bypassed by Alternate Route No. 1.

6 Does not include proposed route across the Chaco to Bolivia.

26. JURISDICTION OVER FISHING AREAS: Final Act of the Conference on United States-Ecuadoran Fishery Relations, Quito, March 25-April 14, 1953 (Excerpt)1

I

The Conference on United States-Ecuadoran Fishery Relations, with reference to Agenda Point 1,2

RECORDS: That it has received information from and views of the Delegations on the questions which have arisen as a result of the seizures of the United States fishing vessels Notre Dame, Sun Pacific, Equator, and Venus.

II

The Conference on United States-Ecuadoran Fishery Relations, with reference to Agenda Point 2,3

AGREES: That the principal causes of the difficulties which have characterized United States-Ecuadoran fishery relations include: *

1. The difference in views of the Governments of the United States and Ecuador with respect to the principles of international law applicable to the extent of territorial waters and the measurement thereof.

2. The difference in views of the Governments of the United States and Ecuador with respect to the principles of international law applicable to innocent passage of fishing vessels.

3. The withdrawal of the privilege of obtaining licenses valid for fishing in Ecuadoran territorial waters on the continental coast. 4. The withdrawal of the privilege of obtaining licenses by radio to fish in Ecuadoran waters.

5. The current United States Government system of issuing clearances bearing the destination "high seas" and the use of these clearances and of "via la pesca" by United States fishing vessels.

III

The Conference on United States-Ecuadoran Fishery Relations, with reference to Agenda Point 3,5

CONSIDERING: That the Conference in analyzing the causes of difficulties in the fishery relations between the United States and

1 Department of State Bulletin, May 25, 1953, pp. 759-761.

2 "Questions which have arisen as a result of the seizures of fishing vessels of the United States of America." [Footnote in original.]

3 "Examination in toto of the acts which caused the difficulties which have characterized United States-Ecuadoran fishery relations.' [Footnote in original.]

'An article "U. S. Policy on Fisheries and Territorial Waters" by William C. Herrington, chairman of the U. S. delegation to this conference (Department of State Bulletin, June 30, 1952, pp. 1021-1023) is useful as background material; also see "Recent Developments Affecting the Regime of the High Seas," infra. 5"Ways and means of bringing about greater cooperation in fishery matters of mutual interest and to the benefit of the two countries." [Footnote in original.]

4