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had an immediate sense of the great mutual
understanding and respect that our people
entertain for each other.

Your Majesty, we treasure deeply this re-
lationship. It is my genuine and most earnest
hope that succeeding generations of our
peoples will continue to reinforce the solid
edifice of American-Ethiopian amity and un-
derstanding.

On this happy occasion, here tonight in the
first house of this land, Mrs. Johnson and I,
on behalf of our distinguished guests, all of
those who are privileged to come here and be
together tonight, and certainly on behalf of
all of the American people, I propose a toast
to Your Majesty — respected statesman,
peacemaker in the world, and most honored
and trusted friend.

Emperor Haile Selassie i'

Mr. President and Mrs. Johnson, honored
guests: We are deeply touched by the kind
words which you, Mr. President, have just
said about us and the people of Ethiopia. We
are equally grateful for the warm welcome
and immense hospitality accorded us during
our present as well as our previous visits to
this great country.

This visit, among other things, also gives
us the opportunity to carry with us the warm-
est greeting and admiration of the Ethiopian
people to yourself and your family, Mr. Presi-
dent, and through you to the talented people
of America.

From the time we have been chosen to lead
our beloved people to the present years of the
space era, Ethiopians have been watching
with keen interest the gigantic technological
strides and the immense economic advance-
ment that the American way of life has
brought about to mankind.

The democratic party politics practiced in



^ As translated from the Amharic language.



MARCH 13, 1967



427



America has always been regarded by Ethio-
pians as a shining example of free expression
of man who has governed his own destiny
along the avenues he freely chooses.

Ethiopia, for one, is certain that in this
great country of the United States she has
real and lasting friendship. Such a relation-
ship exists not as a matter of accident. It is
rather the result of many similar views and
principles which both Ethiopia and the
U.S.A. share and uphold toward the mainte-
nance of enduring peace for the world.

For without peace, whether on the conti-
nental scope or on a regional level, no nation
can progress. The great concern which we at
times manifest over the events developing
around the eastern part of Africa might
make us Ethiopians look more vigilant and
sensitive than our friends wish us to be.

Yet some of the sad reminiscences of our
own history, the peculiar position which we
occupy in world geography, a delicate situa-
tion which is found on the periphery of an
area which is always fraught with turbu-
lence, leaves us together with the other fellow
Africans to face similar situations with no
alternative but to be extra cautious to safe-
guard our national integrity.

At the same time, however, we shall not, as
always, falter to continue strengthening our
friendship with all our neighbors and
friendly countries on the basis of mutual re-
spect.

We always pray to the Almighty that
peace and understanding reign among all na-
tions on earth. We should also take this op-
portune moment, Mr. President, to express
our deep gratitude for the numerous forms
of assistance which Ethiopia has benefited
from your Government, be it in the form of
technical know-how or in human resource in
all walks of our country's endeavor for na-
tional development.

It is, therefore, with this feeling of our
appreciation that we ask the distinguished
guests to toast the health of the President and
his family and to the lasting amity between
our two countries.



Agreement To Solve Rio Grande
Salinity Problem Approved

Statement by President Johnson

white House press release dated February 10

The Governments of the United States
and Mexico have approved an agreement for
a solution to the Rio Grande salinity prob-
lem recommended by the International
Boundary and Water Commission, United
States and Mexico.

President [Gustavo] Diaz Ordaz of Mexico
joined with me in December 1965 in an-
nouncing the recommendations made by the
Commission.! The project consists of a canal
to be constructed through the territory of
Mexico to convey highly saline drainage from
its Morillo drain to existing drainage chan-
nels in that country and thence to the Gulf
of Mexico. The two countries will divide
equally the costs of construction, operation,
and maintenance and supervise the project
through the International Commission.

Both of our Governments moved quickly
to adopt the recommendations and start con-
struction. Within less than a year. Congress
enacted and I approved authorizing legisla-
tion,2 funds were appropriated for this coun-
try's half of the construction costs, and I was
able to inform the Mexican Government that
the United States was ready to proceed.

Meanwhile, Mexico completed its arrange-
ments. Since construction will be entirely in
Mexico, that Government made the detailed:
designs, arranged for rights of way, and or-
ganized construction work. Mexico has beguni
initial construction and plans to complete the
project early in 1968.

When the new works are in operation, the
harmful drainage will no longer enter the
river. Those who make their homes on both
sides of the river will have better water.



' Bulletin of Jan. 24, 1966, p. 118.

^ For a statement by President Johnson made upon
signing Public Law 89-584 on Sept. 19, 1966, see
ibid., Oct. 31, 1966, p. 686.



428



DEPARTMENT OF STATE BULLETIN:



Their crops and lands will be free from dan-
gerous concentrations of salts.

I personally thank the many members of
;he Congress who made it possible for us to
nove so quickly in the adoption of this solu-
ion to a difficult international problem. I
;ongratulate the people in the Lower Rio
iJrande Valley of Texas who waited pa-
;iently while this solution was being devel-
)ped, who responded so readily to the call
for their advice and money, and who will
soon enjoy the fruits of our joint labors
with their neighbors to the south.



President Urges Ratification
of New Ship Safety Rules

White House Announcement

White House press release dated February 15

The President sent to the Senate on Feb-
ruary 15, for its advice and consent to ratifi-
cation, a series of amendments to the Interna-
tional Convention for Safety of Life at Sea
of 1960 1 which will tighten drastically the
international safety standards for passenger
ships.

In his message to the Senate ^ the Presi-
dent said the amendments are the result of
thorough and expeditious negotiations within
an international organization to meet a



tragically demonstrated need for better fire
protection for passenger ships. He urged the
Senate to give early and favorable considera-
tion.

The amendments to the safety convention
were proposed by the United States in the
aftermath of the Yarmouth Castle disaster
and were approved by a special Assembly of
the 64-nation Intergovernmental Maritime
Consultative Organization (IMCO) on No-
vember 30, 1966.3 They still require ratifica-
tion by two-thirds of the governments which
are parties to the convention. When the
amendments enter into force they will re-
quire older passenger ships, previously ex-
empted from modern safety standards, to be
substantially rebuilt or withdrawn from serv-
ice. The IMCO Assembly also recommended
immediate implementation of the new stand-
ards before they formally enter into force.

The amendment of the safety convention
complements legislation enacted by the 89th
Congress and signed by the President on No-
vember 6 establishing higher standards for
passenger ships leaving United States ports
and providing for disclosure of safety stand-
ards and financial responsibility of ship op-
erators (P.L. 89-777).



' Treaties and Other International Acts Series
5780.

^ Not printed here.

' For an article by William K. Miller entitled
"New International Rules for Passenger Ship Safe-
ty," see Bulletin of Jan. 30, 1967, p. 173.



MARCH 13, 1967



429



INTERNATIONAL ORGANIZATIONS AND CONFERENCES



Improving Export Earnings off Developing Countries



Statement by W. Michael BlumenthaV



Mr. Chairman, my delegation considers
this meeting of the Committee on Trade and
Development to be of great importance. We
are meeting at an important time. The Ken-
nedy Round has entered into its final crucial
stages. The work of our Committee can do
much by focusing, at this moment, on the
major issues and opportunities for develop-
ing countries in the Kennedy Round and by
surveying the other aspects of developing
country trade problems on our agenda. By
meeting for the first time in Latin America,
an area of the world where the need for
rapid economic development is constantly in
the forefront of Government thinking and
where the struggle for better earnings from
trade as a means of speeding economic de-
velopment goes on unabated, we are indeed
underlining in a most effective manner the
sum and substance of the work of this Com-
mittee.

The GATT [General Agreement on Tariffs
and Trade] has, I believe, made considerable
contributions in helping the trading prob-
lems of the developing countries. Through
the Kennedy Round and a number of other
activities presently underway, more can and



' Made before the eighth session of the GATT
Committee on Trade and Development at Punta del
Este, Uruguay, on Jan. 18. Mr. Blumenthal, who is
the President's Deputy Special Representative for
Trade Negotiations, was U.S. delegate to the Com-
mittee, which met Jan. 16-20.



430



must be done in the future. The GATT is
young. It is not yet 20 years old. It has al-
most reached the age of discretion. It is still
growing. It is still impressionable, and it
shows every sign of being able to learn from
experience. Here in Punta del Este we have
an opportunity to step back a minute from
the flurry of our Geneva meetings and nego-
tiations and to assess some of the more sig-
nificant of our activities from the unusual
perspective afforded us by our presence here.

One of the most important ways in which
the GATT can contribute to the solution of
the trade problems of developing countries
is to promote the rapid removal of trade bar-
riers. For it is these barriers which frustrate
efforts to diversify exports, hinder raising
the volume of trade, and inhibit the growth
of export earnings. And the most effective
way in which to lower trade barriers is bj
comprehensive multilateral negotiation.

The Contracting Parties already have
much experience in this field. In successive
tariff conferences levels of protection have
been considerably reduced. The Kennedj
Round now offers the opportunity to take i
further giant step.

The magnitude of this step can perhaps
be appreciated by a comparison with the rec
ord of the past. In a series of negotiations
spread over three decades the United States
reduced its tariff to about half its original
level. Now, in the Kennedy Round, we ar«



DEPARTMENT OF STATE BULLETIN



egotiating- for the reduction of tariffs,
gain by half — but this time over a period
E 5, rather than 30, years.
Specifically, looking at access to the U.S.
larket, what is the stake of the developing
>untries in a successful negotiation?

First: The United States has tabled a sum
)tal of offers on all different types of com-
lodities and manufactured goods — agricul-
iral and industrial, temperate and tropical

involving duty reductions or eliminations
r the binding of unbound free items on $1.1
illion of imports from all less developed
ountries in 1964.

Second: This means, for example, that if
ur Kennedy Round offer is fully taken up,
tie 50 percent of United States 1964 imports
rem developing countries participating in
le Kennedy Round which entered the U.S.
uty-free, bound and guaranteed, would rise

a figure of 63 percent. The 1964 figure on
uty-free imports represents the results of
aluable concessions given in early GATT
legotiations. The new figure would reflect
he added Kennedy Round concessions.

Third: As a part of its total offers, the
Jnited States has tabled offers to accord
mmediate duty-free entry to tropical com-
nodities accounting for more than $300 mil-
ion of our 1964 imports from less developed
ountries participating in the Kennedy
lound. If this offer is taken up we shall have
reed from duty about 70 percent of our total
mports of tropical products from all coun-
ries.

Our tropical products offer reflects our
all sympathy for the view that developed
ountries should make every effort to elim-
nate all duties and other internal barriers
vhich restrict the consumption of tropical
)roducts not generally produced in the devel-
)ped nations of the world. Our Congress
ully shared this view and included special
)rovisions to this effect in the Trade Expan-
ion Act of 1962, thus enabling us to make
)ur far-reaching tropical products offer to
ivhich I have just referred. The offer is com-
prehensive. If implemented, it would add to



the duty-free treatment already accorded by
the United States for key commodities, such
as coffee, cocoa, and bananas, a number of
other important tropical product groups, in-
cluding tropical woods, certain oils, nuts,
spices, and many more.

Our law requires, however, that our offer
on tropical products can only be fully imple-
mented if other major industrialized part-
ners in the negotiations take parallel action.
The United States hopes that it will be pos-
sible for them to do so. We urge all countries
to make a major effort in this field. We in-
tend to exert every effort to insure that
major liberahzation of remaining trade bar-
riers on tropical products results f.om the
negotiations.

Foiirth: The U.S. Kennedy Round offers
cover more than 90 percent of our dutiable
imports of manufactured goods from develop-
ing countries participating in the negotia-
tions. Our imports of such items amounted
to more than $300 million in 1964. Our offers
on them are in the main for duty reductions
of 50 percent, the maximum we are author-
ized to offer by law. We consider this to be
of major importance for the trade prospects
of our developing country negotiating
partners.

Fifth: It follows from what I have just
said that the United States has made every
effort to keep items of interest to partici-
pating less developed countries off its excep-
tions lists and on its offers lists. Moreover,
we have offered deeper than 50 percent reduc-
tions and the implementation of reductions
without staging wherever possible under our
legislation.

Sixth: We are making every effort to as-
sure trade liberalization and enlarged trading
opportunities for products where the level
of imports is not always inhibited by tariff
protection alone. For example, we have ac-
tively engaged in bilateral negotiations with
cotton textile exporting countries and as a
part of the Kennedy Round we have sought,
in the context of a renewed Long-Term
Cotton Textile Arrangement, to agree about



MARCH 13, 1967



431



action on tariff as well as nontariff barriers.
The result can be a maximum growth in
cotton textile trade compatible with an
orderly development of our domestic market.
By working out certain bilateral understand-
ings on our cotton textile trade, we think that
exporting countries can look toward growing
export earnings from this vital sector. At the
same time, our domestic industry can be as-
sured of a continuation of necessary, limited
levels of protection to safeguard their health
and well-being.

Cotton textiles are a vital export item for
many developing nations. The Kennedy
Round can and should be used as the means
for similar negotiations between other coun-
tries exporting and importing cotton textiles.

Seventh: The United States, together with
other exporting countries, has proposed the
addition of a multilateral food aid component
as a part of a world grains arrangement
under negotiation in the Kennedy Round. My
country is willing to undertake a significant
share of the responsibility for such a pro-
gram, and we hope that all major partici-
pating nations, exporters and importers alike,
will assume a share of the burden.

The whole effort of seeking in the Kennedy
Round to work out comprehensive arrange-
ments for important temperate commodities,
such as cereals, meats, and dairy products, is
of vital interest not only to developed coun-
tries like my own but also to those developing
nations who rely heavily on export earnings
in this field. I am thinking particularly of
Argentina and Uruguay, Mr. Chairman, who
have a heavy stake in the successful outcome
of our negotiations in this area. For those
countries in particular, the success of the
Kennedy Round will in no small measure
be determined by the extent to which the
negotiations on temperate agricultural prod-
ucts can assure them continued access to
major world markets and reasonable prices
for their products.

Mr. Chairman, these are a few of the prin-
cipal elements of that part of the U.S. Ken-
nedy Round offer which is of particular in-



432



terest to developing countries. They show
why these negotiations are so important and
why so much is at stake for the developing
countries' trade. The United States is, of
course, not the only developed country
participating in the Kennedy Round. All the
other major world trading nations are negoti-
ating partners in Geneva. The offers of many
of these countries would, if taken up, be of
equal importance in promoting developing
countries' export trade. The sum total of what
is at stake in the Kennedy Round is impres-
sive indeed.

Kennedy Round Contributions

We are, however, merely talking about
offers at this point. The next few months will
be critical; they will determine how exten-
sively the offers presently on the table can
be implemented and, indeed, to what extent
they can be further improved. To achieve the
best possible result, it is now time for each
participant to review its position in the light
of the positions of others and to make a
major effort to overcome discrepancies and
imbalance. For example, we have all agreed
that the developing countries in the Ken-
nedy Round need not provide full reciprocity
for the important benefits they are likely tc
receive. Yet it has been clear all along thai
developing countries also should, partly in
their own interest, make some contributions
to the Kennedy Round — contributions con-
sonant with their economic developmeni
needs.

The present picture in this regard is noi
a satisfactory one. At this point there an
few concrete tariff offers from participating
developing countries on the table. It is essen-
tial that every effort be made to remedy this
situation. For while full reciprocity is no1
necessary, if the gap cannot be reduced tht
end effect may well be adverse for developed
and developing countries alike. Unless devel-
oping countries' contributions are included ir
the final settlement, developed countries are
less likely to be able to give the most effectivt
consideration to the needs of the less devel-



DEPARTMENT OP STATE BULLETIN



ped nations. In particular, this could ad-
ersely affect their decisions on final adjust-
lent of offers among each other.
Secondly, in the absence of some effort by
16 developing nations, the likelihood that
ome of the major consuming countries will
urther improve their offers — or, indeed, that
ley will implement all offers presently on the
able — is reduced. As I mentioned earlier, the
bility of the United States to implement a
ood many of its tropical products offers de-
ends on like action by other advanced coun-
ries. Moreover, the Trade Expansion Act
rovides that we can best utilize our powers
or trade liberalization only if all countries
lake contributions to the final negotiating
esults.

Volution of GATT Assistance

The GATT, from the beginning, was de-
igned to raise standards of living and to
romote the economic development of its

embers. At its inception there were 23 Con-
racting Parties, of which 11 were less devel-
iped countries. Now there are 70 Contracting
'arties and a total of 84 countries who par-
icipate in the GATT; 60 of these are less
leveloped countries, and over two-thirds of
oday's Contracting Parties fall into this
ategory. This growth in membership is per-
laps the best indication of the importance of
he work of the GATT to the less developed
jarts of the world.

In order to make the General Agreement
nore responsive to the needs of the less
leveloped countries, the GATT was revised
n certain aspects in 1954-55. More recently,
;he three new articles which constitute part
[V were added, and this Committee was
jstablished. Part IV of the General Agree-
nent is now in effect among the Contracting
Parties which have subscribed to the relevant
protocol. Some 50 Contracting Parties, in-
zluding the United States, have already done
30. We strongly urge that all the remaining
Contracting Parties adhere to it as soon as
possible.

It follows from this brief reference to the



evolution of the GATT in its work on develop-
ing country trade that the Kennedy Round is
by no means the only forum in which im-
portant work on such problems is going for-
ward. Indeed, my country is gratified to note
the many activities of this Committee and
other GATT bodies designed to promote de-
veloping country trade. I should like to com-
ment briefly on a few of these here.

Special Efforts To Lower Trade Barriers

Even before the General Agreement con-
tained the provisions of part IV, the Con-
tracting Parties did a great deal to> open the
major markets of the world to the products
of developing countries. In 1947 and for some
years thereafter, many developed countries
were still experiencing postwar balance-of-
payments difficulties. They applied temporary
quantitative import restrictions to safeguard
their reserves. When these economies had re-
covered and international currency converti-
bility had been restored, the justification for
continuing the systematic application of
quantitative import restrictions disappeared.
The situation of each country applying these
restrictions was discussed in consultation
with the IMF [International Monetary Fund]
and with the GATT Contracting Parties, and
the great majority of the restrictive quotas
were discontinued.

However, there are still a limited number
of quantitative restrictions applicable to
items of export interest to developing coun-
tries. Most of these so-called residual restric-
tions apply to agricultural products, are in-
tended to protect domestic agriculture, and
are inconsistent with the GATT. My delega-
tion urges countries which maintain such re-
strictions to move now to eliminate them. We
support appropriate procedure in the GATT
to bring about further progress in the reduc-
tion and elimination of the remaining re-
sidual restrictions on products of interest to
developing countries.

The principal export interest of the de-
veloping countries today remains in primary
commodities: minerals, tropical and non-



MARCH 13, 1967



433



tropical foodstuffs and fibers, and forestry
products. In general, duties on such products
are relatively low, pai'ticularly since many
countries have removed or suspended duties
on several of these products unilaterally,
acting in the spirit of part IV.

The United States, for example, has sus-
pended duties on copper, manganese, bauxite,
nickel, graphite, certain hardwoods (includ-
ing tropical hardwood), istle, cork insulating
board, silla yarn, tanning extracts, palm nuts
and kernels, and palm oil. Most industrialized
countries have eliminated or suspended duties
on tea and tropical timber, and the documen-
tation for this committee meeting notes that
since the adoption of part IV developed coun-
tries have eliminated duties on over 30 items
of interest to less developed countries, have
reduced duties on several others, and have
temporarily suspended duties on over 20
more.

My delegation hopes that this trend can
be continued. The Kennedy Round may pre-
sent a particular opportunity to make
progress in this regard. We urge all countries
to do their utmost in this regard.

Developing as well as developed countries
are succeeding in lowering barriers in cus-
toms areas and free trade areas. The Central
American Common Market and the Latin



Online LibraryUnited States. Dept. of State. Office of Public CoDepartment of State bulletin (Volume v. 56, Jan- Mar 1967) → online text (page 74 of 90)