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This 33-page illustrated booklet is a basic primer on the subject of
foreign trade with particular emphasis on United States trade policy.

As stated by Secretary of State Dean Rusk, "What we do about
trade policy will be a test of our ability to meet the test of leadei-ship
in the world of the 1960's. . . . What we do affects everybody. In
trade, as in so many other matters, leadership has been placed upon
us by our own capacities and accomplisliments. We can exercise it
wisely or bady, but exercise it we must."



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THE DEPARTMENT OF STATE





E

FICIAL

;EKLY RECORD



Superintendent ot Documents

^"iflR 1 1962

Vol. XLVI, No. 1182 February 19, 1962

L'fPOSfTORY

REPORT TO THE NATION ON THE PUNTA DEL

ESTE CONFERENCE • by Secretary Rusk 267

AMERICAN REPUBLICS UNITE TO HALT SPREAD
OF COMMUNISM IN WESTERN HEMISPHERE •

Statements by Secretary Rusk and Texts of Resolutions . . 270

SECRETARY RUSK'S NEWS CONFERENCE OF

FEBRUARY 1 284

THE PRESIDENT'S TRADE PROGRAM— KEY TO

THE GRAND DESIGN • by Under Secretary McGhee . 289

THE CASE FOR AMERICAN TRADE WITH JAPAN •

by Philip H. Trezise 294



IITED STATES
REIGN POLICY



For index see inside back cover



THE DEPARTIVIENT OF STATE




Vol. XLVI, No. 1182 • Pubucation 7340
February 19, 1962



For sale by the Superintendent of Documents

U.S. Government Printing OtBce

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Price:

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Note: Contents of this pubUcatlon are not
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or State Bulletin as the source will be
appreciated. The Bitlletin Is Indexed In the
Readers' Guide to Periodical Literature.



The Department of State BULLETIN,
a weekly publication issued by the
Office of Public Services, Bureau of
Public Affairs, provides the public
and interested agencies of the
Government with information on
developments in the field of foreign
relations and on the work of the
Department of State and the Foreign
Service. The BULLETIN includes se-
lected press releases on foreign policy,
issued by the White House and tlie
Department, and statements and ad-
dresses made by the President and by
the Secretary of State and other
officers of the Department, as well as
special articles on various piloses of
international affairs and the func-
tions of the Department. Informa-
tion is included concerning treaties
and internatioruil agreements to
which the United States is or may
become a party and treaties of gen-
eral international interest.

Publications of the Department,
United Nations documents, and legis-
lative material in the field of inter-
national relations are listed currently.



Report to the Nation on the Punta del Este Conference



hy Secretary Rush ^



Good evening. Thank you for joining us. I
have reported to President Kennedy on tlie recent
meeting of inter- American foreign ministers in
Pmita del Este," and he has asked me to share this
report with you.

We met there with the other American Eepub-
lics to decide what we should do together to meet
the mounting Communist offensive in our hemi-
sphere. This offensive is worldwide, but there is
no part of it which concerns us more intimately or
more seriously than the systematic subversive at-
tack under way in the Americas, spearheaded by
the present regime in Cuba.

It is for that reason that I should like to talk to
you this evening about this conference and its re-
sults. First, a word of background. In August
1960, 17 months ago, there was a meeting of for-
eign ministers which discussed the Cuban prob-
lem in San Jose, Costa Rica.^ At that time the
foreign ministei-s agreed to condemn outside in-
tervention in the affairs of this hemisphere, and
they reafBnned in broad terms their faith in de-
mocracy and their rejection of totalitarianism.
But they were not then prepared to take concrete
steps aimed at the Communist offensive in gen-
eral and Cuba in particular. In fact Cuba was
not even named in the declaration, and some dele-
gations said that it should not be interpreted as
applying specifically to Cuba.

Communist Nature of Castro Regime

But during these past 17 months there has been
a far-reaching change in the attitudes of both
governments and peoples.

The Communist nature of the Castro regime has I



* Made over radio and television on Feb. 2 (press re-
lease 76; as-delivered text).

' See p. 270.

' For background and text of Declaration of San Jos6,
see BuiXEriN of Sept. 12, 1960, p. 395.



become more apparent to all — and so have its ag-
gressive designs.

The Castro regime voted consistently with the.
Commmiist bloc at the United Nations. It built
up its military strength with the help of Com-
munist arms. It used its embassies in Latin
America as centers of espionage and subversion.
Thirteen American governments broke off all dip-
lomatic relations with Cuba. It sought to intimi-
date, subvert, and harass free governments and
nations, as reported to our meeting by the Inter-
American Peace Committee of the OAS [Organi-
zation of American States] . And Castro himself,
in early December, publicly confessed what every-
one had come to know : that he is a Marxist-Lenin-
ist and would be until he dies.

At the same time it became apparent through-
out the Americas that Castroism was not the an-
swer to their hopes for economic and social prog- j
ress. They saw many Cubans who had originally
joined with Castro in the honest belief that they
were striking a blow for democracy and for eco-
nomic and social reform become disillusioned with
his dictatorship and his subservience to a foreign
power. And, perhaps most important of all, they
saw new hope and real action in President Ken-
nedy's Alliance for Progress,' a peaceful, construc-
tive, and cooperative effort by free men to achieve
rapid economic and social progress through free
institutions.

Accomplishments of Meeting

We met at Punta del Este against the back-
ground of these changes. What was accom-
plished ?

First, in a strong resolution that named names
and minced no words, we declared unanimously —



* For background, see iUd., Sept. 11, 1961, p. 459.



February 19, J 962



267



except for Cuba, of course — that the Castro-Com-
I munist offensive in this hemisphere is a clear and
' present danger to the unity and freedom of tlie
American Republics. Even as we met, reports
came in from several countries of efforts by small
Communist-led minorities to disrupt constitutional
government and the will of the majority.

Second, the ministers agreed, again unani-
mously, that the hemisphere is bound together by
two powerful ties: by its commitment to human
rights, social justice, and political democracy and
by its commitment to exclude from this hemi-
sphere the intervention of outside powers. On
these grounds we concluded, again unanimously,
"That the present Government of Cuba, which has
officially identified itself as a Marxist-Leninist
I government, is incompatible with the principles
and objectives of the inter- American system."

Third, on the basis of this unanimous conclu-
sion, a two-thirds majority decided "That this
incompatibility excludes the present Government
. of Cuba from participation in the inter- American
system." Seventeen had declared that "the pres-
ent government of Cuba has vohmtarily placed
j itself outside the inter- American system." In-
' eluded in this majority were those who felt them-
selves to be, and are, under special attack by Castro
communism.

Fourth, recognizing that the threat of Cuba is
an active threat to the security of the hemisphere
and not merely a matter of ideological incompati-
bility, the foreign ministers, once again unani-
mously, officially ejected the Cuban regime from
I the Inter-American Defense Board, where their
representatives had already been excluded from
confidential discussions. In addition we estab-
lished special machinery within the OAS to rec-
ommend joint action that can block Communist
I subversive activities before they reach the level
' of insurrection or guerrilla war.

Fifth, this meeting decided, again unanimously,
to prohibit trade and traffic in arms between Cuba
and the other American countries. No American
government is now selling arms to Cuba, but we
are determined to do everything necessary to stop
illicit trade or traffic to or from Cuba within this
hemisphere.

Sixth, the Council of the Organization of Amer-
ican States was asked to explore further trade
restrictions, applying to Cuba the same kind of
machinery that was applied last year to the Do-



minican Republic,'' and giving special attention
to items of strategic importance.

Seventh, and finally, the foreign ministers unan-
imously recognized that the struggle against com-
munism in this hemisphere is not merely a ques-
tion of a defense against subversion but of positive
measures as well — economic, social, and political
reforms and development, to meet the legitimate
aspirations of our peoples. In tliis spirit the gov-
ernments committed themselves anew to the great
constructive tasks of the Alliance for Progress.

Signs of Strength of OAS

The rollcall of votes on these resolutions pro-
vided a dramatic demonstration of two important
points.

First, that Cuba stands alone in the Americas.
No other nation voted with its delegates in opposi-
tion to any of these resolutions. We listened to
their longplaying records of invective and abuse
and then got on with our business. They made no
progress with their threats and pleas, they could
find no comfort in any differences among the rest
of us, and finally they withdrew altogether.

The other point is that honest debate was a sign
of strength in the Organization. Unless we know
that the votes which are cast represent the convic-
tions of the governments, the votes themselves
would fail to carry conviction. The fact that dif-
ferences were registered is an insurance that the
unanimity, when expressed, was genuine.

There was no disagreement over the incompati-
bility of the Cuban regime and the inter- American
system. But some governments sincerely felt that
additional legal and technical steps were necessary
before the exclusion of Cuba from participation in
the official agencies of the system could be finally
settled. Wliile they abstained on that vote, how-
ever, all joined in the condemnation of communism
and the present Cuban regune.

Those who spoke for our own Government were
united in their efforts and their satisfaction at the
result. President Kennedy's leadership and the
respect in which our neighbors hold him were evi-
dent throughout the conference.

We were fortunate in having as advisers to our
delegation the chairmen and ranking minority



"For biukgronnd, see ibid., Sept. 5, lOCO, p. 355, and
Feb. 20, 19C1, p. 273.



268



Department of Sfafe Bulletin



members of the Senate and House subcommittees
on inter- American affairs: Senator [WayneJ
Morse, Senator [Bourke B.] Hickenlooper, Con-
gressman [Armistead I.] Selden, and Congress-
man [Chester E.] Merrow. They were of gi'eat
help. We worked on a nonpartisan basis, with
full cooperation between the executive and legis-
lative brandies. Aiid every American can draw
satisfaction from the results of the conference.

But there was an even larger result. An in-
ternational organization such as the Organization
of American States, the OAS, can maintain its
vitality only if it faces up to the issues — no matter
how difficult — which tlie moving course of history
places on its agenda. Because the problems posed
by Cuba and the Communist offensive in this
hemisphere affected each government somewhat
differently, there has been some uncertainty about
whether the OAS was capable of taking hold of
this crucial issue on a collective basis. I believe
that uncertainty has now ended.

The OAS demonstrated that it is a living politi- ^
cal body capable of reconciling different points of j
view in order to move ahead together. It has
proved itself capable of boldly facing a problem
of utmost gravity and taking constructive steps
toward a solution. It has proved itself capable of
sustaining a lively debate on a matter of law and
procedure without losing its poise or its under-
lying unity. Above all, it has demonstrated how
democratic nations, bound together by commit-
ments of principle and geographic association,



can conduct serious business as friendly and digni-
fied partners.

No conference could, by itself, eliminate the
problem of communism in this hemisphere. But
the results of this conference were deeply reassur-
ing. The hemisphere has taken a long stride
forward.

No Quarrel With Cuban People

I might conclude with a point on which there
was, again, unanimity. An empty seat at the
OAS table is no cause for joy. The rest of us have
no quarrel with the Cuban people — only with the
regime which has fastened itself upon that coim-
try. Our Latin American friends are bound to
the Cuban people by powerful ties of culture and
tradition. We ourselves expelled colonialism from
Cuba and provided for its independence. And
that is why all delegations joined in a common
hope that we shall be able to welcome a free gov-
ernment of Cuba back into the family of the
hemisphere.

We talked at Punta del Este about defending the
hemisphere against the Communist threat, because
that was the subject of our meeting. But defense
is only a part of the job. Our main business is
the great creative task of building in these con-
tinents vibrant societies, firmly rooted in the loy-
alty and pride of their peoples, societies which are
secure from attack primarily because their own
people would not have it otherwise.

Thank you and good night.



February 19, 1962



269



American Republics Unite To Halt Spread of Communism in Western Hemisphere



The Eighth Meeting of Consultation of Ministers of Foreign Affairs,
Serving as Organ of Consultation in Application of the Inter-American
Treaty of Reciprocal Assistance, was held at Punta del Este, Uruguay,
January 22-31. The meeting was convoked hy a resolution of the Council
of the Organization of American States on December 4, 1961, to '■'■consider
the threats to the peace and to the political independence of the American
states that might arise from tlie intervention of extracontinental poioers
directed toward breaking American solidarity.''''

Following are statem,ents made hy Secretary Rusk upon his departure
for the meeting and at the sessions of January 25 and 31, together with
texts of the nine resolutions adopted on January 31 and explanatory state-
ments hy several delegations.



DEPARTURE STATEMENT, JANUARY 20

Press release 45 dated January 20

The Eighth Meetuig of Consultation of the
American Foreign Ministers, which will begin on
Monday in Punta del Este, Uruguay, is of para-
mount importance to the Organization of Ameri-
can States, in fact to the entire inter-American
system.

Meeting at the request of the Government of
Colombia, the ministers will be seeking agreement
on measures appropriate to the present situation ;
that is, one in which Cuba, a member government
of the Organization of American States, lias made
itself an accomplice to the Communist conspiracy
dedicated to tlie overthrow of the representative
governments of the hemisphei'e.

I am confident that the foreign ministers, rec-
ognizing the danger which this situation presents
to our free societies and the collective security of
the hemisphere, will find within the inter- Ameri-
can system the most effective possible means for
the protection and strengthening of the principles
upon which this system was founded.



STATEMENT OF JANUARY 25

Press release 55 dated January 25

It is a very great pei'sonal pleasure for me to
be here for my first meeting with my colleagues



of the Americas. The fact that I find among them
a number of old friends enliances that pleasure.

I join my colleagues in expressing our deep
appreciation to the Government of Uruguay for
the warm hospitality which we are enjoying in
this lovely place and for all the arrangements
which were made on relatively short notice to
make this meeting possible. Secretary of State
Stettinius once said that there might not have
been a Charter of the United Nations had it not
been for the weather and charm of San Francisco.
I am confident that Punta del Este is making its
own special contribution to the unity, strength,
and progress of the inter- American system.

For the second time in 6 montlis the nations of
the Americas meet here in pursuit of tlieir com-
mon goal — social progress and economic growth
within a community of free and independent na-
tions. But this time we come to take measures to
safeguard that freedom and independence so that
in the future we may devote all our efforts to so-
cial progress and economic growth.

We are assembled again on the eastern shore of
a vast continent. Across this continent millions of
our people are struggling to throw off tlie bonds
of hunger, poverty, and ignorance — to affirm the
hope of a better life for themselves and their chil-
dren. Ijast August we joined in a historic docu-
ment, the Charter of Punta del Este, setting forth
the goals, the machinery, and the commitments



270



Department of State Bulletin



necessary to transform that hope into reality.
Last August we joined hands in a great alliance —
the Alianza para el Progreso}

Since that time in every part of the hemisphere
we have moved forward with fresh energy in ful-
fillment of the pledges we solemnly undertook to
the people of the Americas. The task ahead is
vast. Everyone in this hall knows the mighty ef-
fort which will be required to break the ancient
cycle of stagnation and despair. But the need for
action is urgent. Across the world the winds of
change are blowing; awakening peoples are de-
manding to be admitted to the promise of the 20th
century. For Americans, north and south, this is
a historical challenge. As the 19th century saw
the Western Hemisphere enter the epoch of po-
litical independence, so the 20th century— if those
of us in this room, and the governments we repre-
sent, have boldness and faith — will see this hemi-
sphere enter the epoch of economic abundance.



Task of Development Measured in Years

The means by which we seek our ends are the
intelligence, decision, and will of the govern-
ments and people of the hemisphere. We cannot
hope to make progress unless the governments
of our nations faithfully meet the needs of their
peoples for education and opportimity, imless
we press steadily forward with the measures of
self-help and social reform which make develop-
ment possible and spread its benefits among all
the people. This work has already begun. Let
me say that it is unfinished business in the United
States itself. Many Latin American nations are
engaged in national plans and programs, inter-
nal reforms and action to build houses, schools and
factories, roads and dams. My own country has
already made large commitments for this fiscal
year and will have no difficulty in meeting the
more than $1 billion pledged to the first year of
the Alliance for Progress. We have together
established international machinery to stimulate
and review national plans.

This is a notable beginning. There is, of course,
much more to be done. Our task is to be measured,
not in the months of this year, but in the years of
this decade. I wish there were some way in which
we could transmit to you the depth of our affec-
tionate interest in the economic and social pros-



» Bulletin of Sept. 11, 1961, p. 459.
febtMaryj J 9, 1962



pects of this hemisphere. Perhaps you would for-
give me for a personal recollection. Like millions
of present-day North Americans, I spent my ear-
liest years in what people would now call under-
developed circumstances. We were prescientific
and pretechnical; we were without public health
or medical care; typhoid, pellagra, hookwonn, and
malaria were a part of the environment in which
providence had placed us. Our schools were prim-
itive. Our fathers and mothers earned a meager
living with backbreaking toil.

But the great adventure through which many
of us have lived has seen the transfonnation of
our lives in a short period — a transformation
brought about by the magical combination of edu-
cation, health, and increasing productivity. On
our farms we felt the impact of the indispensable
partnership among education, scientific research,
and the extension of knowledge to those who could
put it to practical use. Neighbor helped neighbor
to build a house, a barn, or to pass along news
about new prospects and new methods. They
joined together to build roads until public funds
could take over the burden. They pooled their
limited resources to hire a schoolteacher or a doc-
tor. Bits of capital began to accumulate, and this
was reinvested in growth and development. More
and more young people managed to get to the
university, and more and more of these brought
their learning back to the benefit of their own
people.

These changes did not take place without strug-
gle. Years of thought and work and debate were
required to prepare America for the necessary
steps of self-help and social reform. I remember
well the bitter resistance before Franklin
Eoosevelt was able to win support for the Tennes-
see Valley Authority, that immense network of
dams and power stations and fertilizer factories
and agricultural extension offices which has
wrought such miraculous changes in our South.
But a succession of progi-essive leaders, deter-
mined to bring about social change within a frame-
work of political consent, carried through an
"alliance for progress" within the United States.
Other parts of the hemisphere have experienced
similar improvements. What has been done for
some must now be done for all. It shall be our
common purpose to labor without cease to advance
the cause of economic progress and social justice
within the hemisphere— to advance the autono-
mous and peaceful revolution of the Americas.

271



Choosing the Road Into the Future

There are those in every land who resist
change — who see the society they know as the cli-
max of history, wlio identify their own status and
privilege with the welfare of their people, and
who oppose the vital land and tax reforms neces-
sary for the completion of our work. But their
resistance is doomed to failure. The 19th cen-
tury is over; and, in the 20th, people across the
eai'th are awakening from centuries of poverty
and oppression to claim the right to live in the
modern world. "The veil has been torn asunder,"
wrote Bolivar. "We have seen the light; and we
will not be thrust back into the darkness." No
one can hope to prolong the past in a revolution-
ary age. The only question is which road we mean
to take into the future.

This is not a question alone for this hemisphere.
It is a question faced everywhere in the world.
On the one hand are those who believe in change
through persuasion and consent — through means
which respect the individual. On the other are
those who advocate change through the subjuga-
tion of the individual and who see in the turbu-
lence of change the opportimity for power.

I do not believe that I have to argue the moral
superiority of free society anywhere in tlie Amer-
icas. I do not think, other things being equal,
that any rational person would prefer tyranny to
tolerance or dictatorship to democracy. But there
are some who doubt the capacity of freedom to do
the job, and turn in resentment and desperation
to totalitarian solutions. They are wrong. His-
tory shows that freedom is the most reliable means
to economic development and social justice and
that commimism betrays in performance the ends
which it proclaims in propaganda. The humane
and pragmatic methods of free men are not merely
the riglit way, morally, to develop an underdevel-
oped country; they are technically the efficient



Online LibraryUnited States. Dept. of State. Office of Public CoDepartment of State bulletin (Volume v. 46, Jan- Mar 1962) → online text (page 54 of 101)