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United States Department of State / Foreign relations of the United States, 1952-1954. Volume IV: the American republics
(1952-1954)

United States general policy with respect to Latin America,   pp. 1-115 PDF (42.5 MB)


Page 84

 
FOREIGN RELATIONS, 195 2-1954, VOLUME IV 
try, (2) within the borrower's capacity to repay, and (3) within the 
Bank's lending capacity and charter powers, be prepared to assure such 
financing of all sound economic development projects, for which pri- 
vate capital or IBRD financing is not available. 
  c. Only if action under a and b above over a period of time demon- 
strates that these courses of action are inadequate, and then only with 
Presidential approval in each case, finance through development assist- 
ance loans the initiation or acceleration of projects or activities which
are in the basic U.S. interest and which, in the absence of such addi- 
tional assistance, would not be undertaken or, if undertaken, would not 
be carried forward at the rate required by U.S. foreign policy objec- 
tives. 
  d. Strengthen, and program on a longer term basis, technical cooper- 
ation, with particular attention to the willingness and ability of each 
country to use such aid effectively: and increase specialized training in
the U.S. of Latin Americans in finance, labor, management, agriculture, 
business and other specialized fields. 
  e. Preserve the necessary authority to continue or undertake limited 
economic grant programs such as the Inter-American Highway and the 
Rama Road, and the emergency program now being carried out in 
Bolivia. 
  f While recognizing the sovereign right of Latin American countries 
to undertake such economic measures as they may conclude are best 
adapted to their own conditions, encourage them by economic assist- 
ance and other means to base their economies on a system of private 
enterprise and, as essential thereto, to create a political and economic
climate conducive to private investment, of both domestic and foreign 
capital, including: 
       (1) Reasonable and non-discriminatory laws and regulations af- 
    fecting business, 
       (2) Opportunity to earn and in the case of foreign capital to 
    repatriate a reasonable return, 
       (3) Reasonable rate-making policies in government regulated en- 
    terprises, 
       (4) Sound fiscal and monetary policies, and 
       (5) Respect for contract and property rights, including assurance
     of prompt, adequate, and effective compensation in the event of 
     expropriation. 
  g. Consider sympathetically, but only on individual merit, any pro- 
posal by Latin American initiative to create regional economic actions 
and groupings to promote increased trade, technical cooperation and 
investment, and to concert sound development plans; with the under- 
standing that any such proposal would not involve discrimination 
against U.S. trade and that no additional U.S. financial commitments 
would be involved hereunder without further consideration by the 
National Security Council. 
  h. Utilize, in reference to Latin America, the authority in the Agri- 
cultural Trade Development and Assistance Act of 1954 to build non- 
deteriorating assets valuable to the future of the United States. 
  i. Where appropriate encourage diversification of Latin American 
economies on a sound basis. 
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