870


FOREIGN RELATIONS, 19 5 0, VOLUME I


specific project agreements incl satis language covering the minima
set forth above. You may proceed negot accordingly subj Dept
approval.
  A draft agreement is under preparation.2 It will be mailed shortly,
but unnecessary await receipt before negots accordance foregoing.
  Urge ur proposals represent double minimum amts allotted pursuant
Depcirtel Sep 12 in view late start current year and unlikelihood all
countries will submit programs justifying entire allocation available
for bilateral program.
                                                         AciaEsoN

  2 For text, see enclosure to circular instruction, November 21, p. 871.


820.00-TA/11-2150
    The Secretary of State to Diplomatic Missions in the American
                            Republics 1

 RESTRICTED                        WVASHINGTON, November 21,1950.

        NEGOTIATION OF A GENERAL POINT Foui AGREEMENT

   The Secretary of State transmits herewith a draft of a General
 Agreement for Technical Cooperation between the United States and
 countries in which Point Four programs are current or are proposed.
 Such an instrument would represent the basic agreement of the two
 governments to engage in a general program of technical cooperation
 for economic development and would-take the form of a formal agree-
 ment to be signed between chiefs of diplomatic missions tand the
 Foreign Minister, rather than of - simple exchange of notes. The
 Department considers that the existence of a general agreement to
 cover Point Four operations in the host country would offer a num-
 ber of advantages to both countries.
   The agreement would afford a framework into which specific
 projects and programs can be placed with a minimum of further
 negotiations and formality. The several determinations required by
 section 407 (c) of P.L. 535, for example, could be made in respect of
 the country in question mainly if not entirely on the basis of the
 undertakings in the agreement, thereby eliminating or greatly re-
 ducing the need for reconsideration of this problem whenever an
 individual project is contemplated. Similarly, problems common to
 all projects: and programs such as taxation of United States person-
 nel and immunity of funds, materials, and equipment introduced into
 the host country by the United States are comprehensively covered. As

    Sent to the Embassies in Guatemala and Argentina for information only.