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the sound development of the resources of the free world. In this connection, the Government of the United States emphasized its intention to encourage the flow of investment abroad.

(d) Organization: International institutions should be constructively used to promote these policies.

The Government of the United States welcomes the initiative taken by the United Kingdom Government in connection with these problems of common concern.

The two Governments believe that there is reason to hope for continued progress toward a better balanced, growing world trade and toward the restoration of a multilateral system of trade and payments. The nature and scope of the measures which may be taken by governments to further such progress, and the timing of such measures, will require further study.

The Government of the United States will undertake, and continue over the next several months, an intensive examination and review of the general subjects discussed at the present meetings, including the suggestions resulting from the Commonwealth Economic Conference, and possible alternative suggestions, in order to arrive at a sound judgment with respect to the specific courses of action which might be taken. The two Governments intend to have further discussions with each other, with other governments, and with the international organizations concerned, including the Organization for European Economic Cooperation.

82. EXCHANGE OF VIEWS ON POLITICAL MATTERS: Statement by the Secretary of State and the British Foreign Secretary, April 13, 19541

At the conclusion of their meetings in London on April 12 and 13, during which they discussed a number of matters of common concern, Mr. John Foster Dulles and Mr. Anthony Eden issued the following

statement:

We have had a full exchange of views with reference to Southeast Asia. We deplore the fact that on the eve of the Geneva Conference the Communist forces in Indochina are increasingly developing their activities into a large-scale war against the forces of the French Union. They seek to overthrow the lawful and friendly Government of VietNam which we recognize; and they have invaded Laos and Cambodia. We realize that these activities not only threaten those now directly involved, but also endanger the peace and security of the entire area of Southeast Asia and the Western Pacific, where our two nations and other friendly and allied nations have vital interests.

Accordingly we are ready to take part, with the other countries

1 Department of State Bulletin, Apr. 26, 1954, p. 622.

principally concerned, in an examination of the possibility of establishing a collective defense, within the framework of the Charter of the United Nations, to assure the peace, security and freedom of Southeast Asia and the Western Pacific.1

3

It is our hope that the Geneva Conference will lead to the restoration of peace in Indochina. We believe that the prospect of establishing a unity of defensive purpose throughout Southeast Asia and the Western Pacific will contribute to an honorable peace in Indochina. We have also discussed developments in the field of atomic energy. It will be recalled that on March 19 the Soviet Ambassador in Washington was handed by the Secretary of State of the United States a concrete proposal elaborating on that portion of President Eisenhower's speech of December 8, 1953, before the General Assembly of the United Nations which dealt with the subject of peaceful use of atomic energy. The Government of the United Kingdom, together with several other friendly nations concerned, had been consulted and had concurred in the terms of the concrete proposal before it was given to the Soviet Government. No reply has yet been received from that government, which is studying the proposal. We also noted that the British Representative to the United Nations in New York, with the support of the United States and French Representatives, had suggested that a call be issued for an early meeting of the subcommittee of the Disarmament Commission of the United Nations.

83. GENERAL POLICY REVIEW: Statement by the President of the United States and the Prime Minister of the United Kingdom, June 28, 1954 5

At the end of their meetings today, the President and the Prime Minister issued the following statement:

In these few days of friendly and fruitful conversations, we have considered various subjects of mutual and world interest.

I. Western Europe

We are agreed that the German Federal Republic should take its place as an equal partner in the community of Western nations, where it can make its proper contribution to the defense of the free world. We are determined to achieve this goal, convinced that the Bonn and Paris Treaties provide the best way. We welcome the recent

1 These collective defense proposals eventually resulted in the Southeast Asia Treaty Organization; see supra, pp. 912–916.

2 See infra, pp. 2372-2398.

3 Infra, pp. 2805-2808.

Infra, pp. 2798-2805.

5 Department of State Bulletin, July 12, 1954, p. 49.

• Convention of May 26, 1952; S. Execs. Q and R, 82d Cong., 2d sess., pp. 9-22; European Defense Community Treaty of May 27, 1952; supra, pp. 1107-1150.

statement by the French Prime Minister that an end must be put to the present uncertainties.1

2

The European Defense Community Treaty has been ratified by four of the six signatory nations, after exhaustive debates over a period of more than two years. Naturally these nations are unwilling to disregard their previous legislative approvals or to reopen these complex questions.

3

In connection with these treaties, the United States and the United Kingdom have given important assurances, including the disposition of their armed forces in Europe, in order to demonstrate their confidence in the North Atlantic Community and in the EDC and the Bonn Treaties.

It is our conviction that further delay in the entry into force of the EDC and Bonn Treaties would damage the solidarity of the Atlantic nations.

We wish to reaffirm that the program for European unity inspired by France, of which the EDC is only one element, so promising to peace and prosperity in Europe, continues to have our firm support. II. Southeast Asia

We discussed Southeast Asia and, in particular, examined the situation which would arise from the conclusion of an agreement on Indochina. We also considered the situation which would follow from failure to reach such an agreement.

We will press forward with plans for collective defense to meet either eventuality.

We are both convinced that if at Geneva the French Government is confronted with demands which prevent an acceptable agreement regarding Indochina, the international situation will be seriously aggravated.

III. Atomic Matters

We also discussed technical cooperation on atomic energy. We agreed that both our countries would benefit from such cooperation to the fullest extent allowed by U.S. legislation.

IV.

In addition to these specific matters, we discussed the basic principles underlying the policy of our two countries. An agreed declaration setting forth certain of these will be made available tomorrow.

1 See the address by M. Mendès-France before the French National Assembly, June 17, 1954; Documents on American Foreign Relations, 1954 (New York, 1955), pp. 72-78.

2 The Federal Republic of Germany, Belgium, the Netherlands, and Luxem bourg.

3 See President Eisenhower's message of Apr. 15, 1954, to the Prime Ministers of the countries which signed the EDC Treaty (supra, pp. 1198-1200) and the treaty of May 27, 1952, between the United Kingdom and the EDC (supra, pp. 1172-1173).

84. COMMON PRINCIPLES OF ANGLO-AMERICAN POLICY: Declaration by the President of the United States and the Prime Minister of the United Kingdom (Potomac Charter), June 29, 19541

As we terminate our conversations on subjects of mutual and world interest, we again declare that:

(1) In intimate comradeship, we will continue our united efforts to secure world peace based upon the principles of the Atlantic Charter, which we reaffirm.

(2) We, together and individually, continue to hold out the hand of friendship to any and all nations, which by solemn pledge and confirming deeds show themselves desirous of participating in a just and fair peace.

(3) We uphold the principle of self-government and will earnestly strive by every peaceful means to secure the independence of all countries whose peoples desire and are capable of sustaining an independent existence. We welcome the processes of development, where still needed, that lead toward that goal. As regards formerly sovereign states now in bondage, we will not be a party to any arrangement or treaty which would confirm or prolong their unwilling subordination. In the case of nations now divided against their will, we shall continue to seek to achieve unity through free elections supervised by the United Nations to insure they are conducted fairly. (4) We believe that the cause of world peace would be advanced by general and drastic reduction under effective safeguards of world armaments of all classes and kinds. It will be our persevering resolve to promote conditions in which the prodigious nuclear forces now in human hands can be used to enrich and not to destroy mankind.

(5) We will continue our support of the United Nations and of existing international organizations that have been established in the spirit of the Charter for common protection and security. We urge the establishment and maintenance of such associations of appropriate nations as will best, in their respective regions, preserve the peace and the independence of the peoples living there. When desired by the peoples of the affected countries we are ready to render appropriate and feasible assistance to such associations.

(6) We shall, with our friends, develop and maintain the spiritual, economic and military strength necessary to pursue these purposes effectively. In pursuit of this purpose we will seek every means of promoting the fuller and freer interchange among us of goods and services which will benefit all participants.

1 Department of State Bulletin, July 12, 1954, pp. 49–50.

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