Sixth Annual Report

The sixth annual report of the Organization for European Economic Cooperation (OEEC), subtitled “From Recovery towards Economic Strength”, stated that the period of recovery, begun in 1948 under the Marshall Plan, had been completed and that “the task which Western Europe now faces is to build a better economy than that existing before the war”. The current economic situation of the OEEC members was felt to be on the whole very sound; it was stated that “no previous annual report of the OEEC could describe so favourable a general situation”.

Common Assembly

The Common Assembly of the European Coal and Steel Community (ECSC) held its second extraordinary session in Stras-bourg from May 6 to 9, 1955, and its third ordinary session in the same place, May 10 ot 14; the third ordinary session was scheduled to reconvene on June 21. At the extraordinary session, the Assembly heard a report by its president, Mr. Pella (Italy), on his talks with the governments of ECSC members on various political matters. The Assembly approved a provisional budget of 78 million Belgian francs and also decided to establish a working party with 26 members to report to the Assembly on the procedure which might be proposed to ensure a more precise formulation of the Assembly's powers of control over the Community and the common market and to study the problems which would arise in the event the members of the Assembly were elected by universal suffrage.

Council: The Council of the Organization for European Economic Cooperation (OEEC) met on May 5 and 6, 1954, and agreed on the basis of a compromise settlement of the extreme creditor and debtor problem in the European Payments Union (EPU). The settlement provided that 1) accumulated debts should be paid over a period of time; 2) debtors should in the future limit to a minimum their resort to EPU resources; 3) the rules of payment should remain unaltered; 4) if the German Federal Republic or other creditors increased their surpluses in EPU, they should extend further credit, but receive some compensation from the EPU dollar reserve; and 5) the special position of Germany should be dealt with. According to press reports, the settlement had averted the danger that the United Kingdom and Germany would withdraw from EPU. The Council, which also decided that EPU should be renewed for another year after June 30, 1954, referred the matter of further details of the settlement to the managing board of EPU. Other actions taken by the Council during its May meeting included the following: 1) recommendations to France that it abolish the compensatory taxes on imports which it had introduced along with certain measures of trade liberalization, and increase trade liberalization to 75 percent by November 1, 1954, instead of to the 65 percent which it had promised; 2) recommendations to the steering board that it submit, as soon as possible, “concrete proposals” for the abolition of artificial measures designed to aid exporters; and 3) the establishment of a ministerial group to examine the problems which would arise if a “number of countries” re-established convertibility.

The Council of the Intergovernmental Committee for European Migration (ICEM) met in Geneva from April 27 to May 4, 1955, after a week-long meeting of the ninemember Executive Committee. The Council approved a $48 million budget, of which $2.5 million was earmarked for administrative expenses. The $46.6 million operational budget would finance the processing, transport and resettlement of the 142, 165 Europeans the Committee hoped to move in 1955. The major countries of immigration were expected to be Australia, United States, Argentina, Brazil, Canada, Venezuela; major countries of emigration were expected to be Trieste and Italy, Germany, Austria, Greece, Netherlands.

Council

The following summary covers the activities of the Council of the Organization of American States (OAS) from May 6 to July 1, 1953, from November 4 to December 2, 1953, from January 6 to February 12, 1954, and from April 21 to July 29, 1954.

Monthly statements issued by EPU during the period March 1954–December 1954 indicated that the German Federal Republic retained its position as chief creditor; United Kingdom monthly surpluses, while considerable, were less consistent than those of Germany. France showed a surplus for the month of July 1954, for the first time since June 1952, and by December 1954, had a cumulative surplus since June 30, 1954, of 6.7 million units of account. Settlements with France under the rule that gold paid by France would be recoverable to the extent that it had a net surplus for the period after June 30, 1954, reduced the amount of gold paid by France for deficits beyond its quota to 351.3 million units of account. Surpluses and deficits of other member countries were settled half in gold and half in credit, with the exception of Greece and Turkey, whose balances were settled in gold. As a result of EPU's December operations, its total of gold and convertible assets declined by 5.6 million units, to 422.9 million units.

The first meeting of the foreign ministers of the signatories of the Southeast Asian Defense Treaty (SEATO) which had entered into force on February 19, 1955, was held in Bangkok, Thailand, from February 23 to 25, 1955,1 under the chairmanship of Prince Wan Waithayakon, Foreign Minister of Thailand. In the communique issued at the close of the meetings, the foreign ministers observed that their meeting had been held “in circumstances which gave increasing urgency to the objectives of the Treaty”.

The fourth annual meeting of the International Commission for Northwest Atlantic Fisheries was held in Halifax, Canada, from June 14 to 18, 1954, under the chairmanship of Dr. Stewart Bates (Canada). The Commission received and approved a report from the Standing Committee on Research and Statistics recommending modifications and additions in the Commission's system of collecting and compiling statistics. With regard to haddock regulations, the Committee had referred to one of its panels the question of a proposed amendment to the regulation exempting a specified maximum percentage of the catch of haddock to ensure that there was no hardship to fishermen. Upon the recommendation of the scientific advisers that there was no undue hardship, the Commission noted that important principles of exemption were involved, and furthur serious consideration was required. The Commission received and approved reports which dealt with the status of the fisheries, its research programs in relation to the more comprehensive research program adopted by the Commissionn i 1953, and commercial fishing regulations. The Commission chose Ottawa, Canada, as the site of its next meeting which was to be held in June 1955.

On August 13, 1955, delegates from the five members of the Organization of Central American States (OCAS)—Guatemala, El Salvador, Honduras, Nicaragua and Costa Rica—convened at Antigua, Guatemala, for the first formal meeting of the organization, which had been “founded in 1951. According to the press, the first formal meeting had been postponed a number of times: until 1954, because Guatemala had withdrawn in protest against the anticommunist point of view of the other members, and after Guatemala had rejoined in 1954, because of tension between Costa Rica and Nicaragua. The most important and controversial item on the agenda of the conference, according to reports, was the election of a Secretary General; on August 24, after lengthy debate, the foreign ministers of the five member states chose by acclamation Jose Guillermo Trabanino, Foreign Minister for Ell Salvador. His election was reported to have been a diplomatic victory for Nicaragua against Costa Rica, since before the conference it had been generally supposed that, under the terms of an unofficial agreement reached by the five foreign ministers in April 1955, the post would go to a Costa Rican. The El Salvadorian nomineehad been approved to break the deadlock which developed as it became apparent in the course of the conference that Nicaragua would vote against any candidate proposed by Costa Rica. Other action taken by the conference included the following: 1) it requested the Secretary General to initiate conversations with the Superior Central American University Council, to coordinate activities in the field of higher education in the region; 2) it authorized the creation of a council of culture and education as a specialized agency widiin the organization;) it authorized its central office to study and formulate a project to be presented at the next ordinary conference, toward a Central American customs union; and 4) it created a commission of jurists to study the codification of Central American legislation, initiate studies on the possibility of unifying juridic principles and establishing cooperation with the corresponding organs of the United Nations and the Organization of American States.

Thirteenth Session

The South Pacific Commission held its thirteenth session at Anse Vata, Noumea, from October 11 to 28, 1954, with the Senior Commissioner for Australia, Mr. J. R. Halligan as chairman. The Commission accepted the report of the Sixth Meeting of the Research Council “with appreciation of its comprehensive review of the possibilities for study and development”.

The sixth meeting of the Consultative Committee on Economic Development in South and Southeast Asia took place at Ottawa from September 20 to October 9, 1955. Present at the meeting were representatives of the member states, and observers from Japan, the Philippines, and Thailand; these latter three countries were accepted as full members of the Consultative Committee during the meeting, raising the membership to seventeen.

The thirteenth plenary meeting of the International Cotton Advisory Committee was held in Sāo Paulo, Brazil, from June 7 to 16, 1954. Senor Garibaldi Dantas (Brazil) was Chairman of the meeting. Representatives from 25 member governments and observers from 15 other governments and from three international organizations were in attendance. The Committee heard reports from its officers and a review of the world cotton situation and statements on the cotton situation in various countries. Seventeen resolutions were adopted. The first five related to the financial affairs of the Committee including the budget for 1954–1955; others: 1) asked the Secretariat to make preliminary inquiries of technical and research bodies regarding comparative information on fiber properties of commercial cotton; 2) suggested that governments should consider action to encourage an increase in world consumption of cotton; 3) asked governments to submit information regarding the results of technological research on the properties and utilization of cotton and the organization and financing of agencies conducting such research; 4) invited the attention of national and international organizations to the fact that the most effective and lasting way of increasing cotton consumption was to raise the standard of living in underdeveloped areas; 5) asked the Secretariat to secure information on new and improved products of and uses for cotton; 6) asked governments to consider an international cotton welfare program outlined in a report on expanding world cotton consumption; and 7) asked the Secretariat to continue providing information on the use of synthetic fibers.

The International Whaling Commission held its sixth meeting in Tokyo, Japan, from July 19 to 23, 1954. Represented were all of the seventeen member governments except Iceland. Observers were present from Argentina, Chile, Italy, Portugal, the International Council for the Exploration of the Sea, and the Food and Agriculture Organization. Mr. A. T. A. Dobson (United Kingdom) acted as secretary of the meeting. The Commission approved its expenditure of £1,854 for financial year 1953/1954, and adopted a budget of £2,580 for 1954/1955. Attention was called to the great waste of resources represented by lost whales; the Commission accepted various suggestions from its technical committee for tightening up the present procedure with a view to reducing the number of infractions in the future. It was decided that the use of helicopters and other aircraft for the killing of whales should be brought within the scope of the Convention. A large number of recommendations emanating from the scientific committee were dealt with. The scientific committee's recommendation prompted a large number of proposals for the amendment of the regulations in force. At the invitation of the Soviet Union, the next meeting of the Commission was to be held in Moscow on July 18, 1955.

The Council of Deputies of the Southeast Asian Defense Treaty (SEATO) was reported to have held a closed meeting in secretariat, and the creation of a committee of experts on subversion, which had been previously proposed by Thailand. It was later reported that a group of 25 technical experts from the eight member states was scheduled to meet in Bangkok on May 3, to discuss measures for combating communist infiltration and subversion in Southeast Asia.

Common Assembly

The second ordinary session of the Common Assembly of the European Coal and Steel Community (ECSC) opened in Strasbourg on May II, 1954; Mr. de Gasperi (Italy) was unanimously elected president. Mr. Monnet, President of the ECSC High Authority, reported that the “first steps in the creation of Europe” had obtained for the member countries a renewal of credit, more favorable financial conditions, and a more productive use of their resources than they could have achieved separately. Before concluding the session on May 21, the Common Assembly adopted a resolution which dealt with the report of the High Authority, the report on administrative expenses of the Community for 1952–1953, and the provisional budget for 1954–1955. The resolution 1) approved the expressed intention of the High Authority to limit administrative expenses and its decision to draft a statute for officials of the Community; 2) stressed the open character of ECSC, expressed gratification at the development of its relations with the Council of Europe, called for speedy conclusion of the negotiations with the United Kingdom, and expressed a desire for relations with other European countries, especially Austria; 3) urged that greater attention be given to the question of cartels and maximum prices, which in some cases needed to be lowered; 4) invited the High Authority to pursue, in cooperation with governments, efforts to introduce standard international freight through-rates, and to harmonize conditions of transport; 5) congratulated the High Authority on its work to free the movement of manpower, and hoped for the development of comparable conditions of remuneration and of social security norms throughout the Community; 6) approved the allocation of a large part of the first investments financed by the Community to new construction of workers' housing; and 7) requested the High Authority to seek, through the Council of Ministers, adoption of a coordinated policy of economic expansion and development of outlets, with the objective of a reduction in the cost price of coal and steel.

The Council of Ministers of Western European Union (WEU) met on June 16, 1955 in London. The Council gave further consideration to the setting up of the European Commission for the Saar, and the following members were nominated by governments and approved by the Council: M. F. Dehousse (Belgium), P. De Paolis (Italy), M. A. Kunnen (Luxembourg), A. W. C. Bentinck (Netherlands), and George Ren-del (United Kingdom). The first meeting of the European Commission, it was decided, would be held on June 24 in London. The Council also decided that the inaugural meeting of the Assembly of WEU would be held on July 5 in Strasbourg.

Eighth Session

The eighth session of the Intergovernmental Committee for European Migration (ICEM) was held in Geneva from November 30 to December 4, 1954. With the opening of the session, the Constitution entered into force, the required sixteen ratifications having been deposited by Argentina, Australia, Austria, Canada, Chile, Denmark, German Federal Republic, Greece, Israel, Italy, Netherlands, Norway, Paraguay, Sweden, Switzerland and the United States During the session, Costa Rica deposited its instrument of ratification. A final revised budget and plan of operation for 1954 was approved which provided for the overseas migration of 119,261 persons at a total cost of $48,782,776, as compared with $25,855,416 in 1953 to move 143,420 persons. On the recommendation of the Director of ICEM (Gibson) a budget of $46.5 million was approved for a 1955 program to assist the movement of 143,420 persons. Problems of the future budgetary position of ICEM were discussed at the meeting; a member of the United States delegation (Jensen) warned the meeting not to assume “that the Committee may go on indefinitely with a higher budget each year than the year before, unless the Committee can increase each year the proportion of its operations that are on a self-reimbursable basis”. Various proposals to meet the expected budgetary deficit of $1.8 million in 1955 were discussed. The Director proposed that part of this sum could come from token prepayments by emigrants or partial reimbursement after settlements. Other delegations, including the Netherlands, opposed the principle of payment by emigrants and proposed as alternatives either that countries in which ICEM made contributions to the national income through contracts for shipping or other services repay ten percent of these amounts (an estimated $1.5 million in additional income) or that each sending and receiving country pay an additional $10 per migrant moved (an estimated $2.5 million).

Fifteenth Session

The fifteenth session of the International Wheat Council met in London from June 16 to 21, 1954, and discussed the current wheat situation and its effects on the operation of the International Wheat Agreement. Prior to the opening of the session, press reports had indicated that the importing countries would raise the problem of recent price reductions by some major exporters and that the exporters would raise the problem of the declining purchases under the agreement. On the operation of the agreement in the current world wheat situation, the Council stated that the lower volume of international transactions during the 1953–1954 crop year reflected the general reduction in demand resulting from higher production in importing countries and reduction of reserve stocks in importing countries. Since prices within and outside the agreement had moved within the range of the agreed maximum ($2.05) and minimum ($1.55) prices, neither exporting nor importing countries had been obliged to transact business within the agreement. The Council recognized that, where substantial supplies of wheat were available for export in excess of current demand, the possibility persisted that the conditions of international trade in wheat could deteriorate to an extent that would have serious implications for international trade in general and the economies of wheat exporting and importing countries in particular, unless an orderly adjustment to more normal levels of supply and demand could be assured and maintained. The Council unanimously agreed that the cooperation of all wheat importing and exporting countries was essential to prevent such a situation from developing and that the International Wheat Agreement was the instrument for such international cooperation.

Common Assembly

The third ordinary session of the Common Assembly of the European Coal and Steel Community (ECSC) reconvened from June 21 to 24, 1955. In his opening address Mr. Rene Mayer, newly elected president of the High Authority of the ECSC, expressed general agreement with the policy resolutions passed by the Common Assembly at its May meeting, and specifically mentioned resolutions on cartels, on implementation of the association agreement with the United Kingdom, and on action to improve the living standard of the workers in the ECSC countries, in regard to which he announced that the High Authority would shortly conclude two loans to finance new workers' housing projects–one of $4,000,000 in Belgium and the other of just over $4,000,000 in Germany. In addition, $300,000 were to be allocated for medical research. In commenting on the Messina conference of foreign ministers, Mr. Mayer said that the High Authority welcomed the decision to explore means of extending the single market. At the same time, he warned the Assembly to expect resistance to changes as the Community developed.