FOREIGN ECONOMIC AND COMMERCIAL POLICY


Negotiation with France
  The lack of tangible progress innegotiations with France, which
were started in April, 1948 and suspended in November of that year,
may be creating a situation with, serious implications for the future
development of the treaty program. The issue of national treatment,
which brought about, the impasse in negotiations, was considered
during the visit of Foreign, Minister Schumann. to Washington in
September, 1949 and a formula for its solution was worked out. The
French thereupon indicated their satisfaction with the treaty com-
mitments on national treatment and stated their intention to resume
the negotiations within the near future, in the expectation of an early
conclusion. Since that time, however, the French Government has
made no constructive effort to revive the negotiations; and there is
ground for supposing that its former attitude of opposition, and
even hostility, to the fundamental principles of liberal economic
intercourse embodied .in the FCN treaty persists. This attitude raises
implications affecting the commercial treaty program generally, as
other European countries are known to be cognizant of the nature of
the issues involved in the French negotiations and may become in-
clined to shape their own policies accordingly, especially in view of
current efforts to coordinate national economic policies through the
OEEC mechanism. The French attitude also would appear to have
bearing on the extent to which long-term objectives of United States
economic foreign policy are likely to be realized. French reluctance
to give reasonable assurances as to nondiscriminatory treatment for
American citizens, enterprises and investments would Iappear to be
at variance with:the purposes for which France has become a major
recipient of ECA assistance and a prospective colonial beneficiary
of Point Four.
Consultation With Private Business Groups
  During the past several months contact has been maintained with
responsible organizations representing private business interests, al-
though the current circumstances of the treaty program have not
necessitated extensive consultations. It may be noted that a number
of private business groups have indicated their approval of the treaty
with Uruguay, particularly as an aid to investment, and have ex-
pressed the hope that this treaty will encourage other Latin American
countries to enter into similar arrangements with the United States.


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