PROGRESS OF THE PROGRAM FOR THE MODERNIZATION
  OF THE TREATIES OF FRIENDSHIP, COMMERCE, AND
  NAVIGATION'
611.004/3-2250
   Memorandum Prepared in the lBureau of Economic Affairs2

CONFIDENTIAL                      [WASHINGTON,] March 10, 1950.

PRESENT STATUS OF PROGRAM FOR NEGOTIATING TREATIES OF FRIEND-
                 SHIP, COMMERCE AND NAVIGATION


  Since the last report on the status of the commercial treaty program
(October 25, 1949),3 treaties have been signed with Ireland and
Uruguay; signature of the treaty with Lebanon is expected in the
near future; a formal proposal for negotiations has been made to
Denmark; treaty projects have been instituted with respect to
Argentina and Sweden; preliminary negotiating meetings have been
held with Brazil and Colombia; informal approaches with regard
to possible negotiations have been made to Israel and Paraguay; and
substantial progress has been made with several existing projects.
Brief summaries of the present status of existing treaty projects
and of certain significant factors affecting the program as a whole
are set forth below:
Function of FCN Treaties
  During the past several months there has been evidence of a broader
general understanding of the functions of treaties of friendship, com-
merce and navigation. Clarifications of policy with respect to the
Point Four program and the signing of the treaties with Ireland and
Uruguay have tended to focus attention upon the role of these treaties
in promoting the investment of private capital in foreign countries

  For previous documentation, see Foreign Relations, 1949, vol. I, pp. 631
ff.
  2Forwarded on March 22 by the Deputy Assistant Secretary for Economic
Affairs (O'Gara) to the Under Secretary of State (Webb).
  3Not printed, but see Foreign Relations, 1949, vol. I, p. 647.
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