AID FOR BACKWARD COUNTRIES

Press, Volume LXXXV, Issue 25833, 18 June 1949, Page 7

AID FOR BACKWARD COUNTRIES

Mr Trygve Lie Suggests U.N. Programme

methods of stimulating foreign investments

(N.Z. Press Association—Copyright) (Rec. 10 p.m.) NEW YORK. June 16. The Secretary-General of the United Nations (Mr Trygve Lie) to-night proposed a three-point programme for increasing the flow of foreign investments into economically backward countries. The mam provisions were:— (1) The elimination of discriminatory taxation and possibly the granting of preferential tax treatment. (2) Fair treatment of foreign investors. (3) Guaiantees that investors could transfer their earnings outside a particular country if andyivhen they desired. Mr Lie s proposals were worked out in consultation with several specialised United Nations agencies, including the International Bank, the International Monetary Fund, and the Food and Agriculture Organisation.

Mr Lie recommended that backward countries should help themselves by providing inducements for private savings, guiding savings into useful development, and using import duties to finance development and to give preference to imports of capital goods. Mr Lie’s report grew from President Truman’s “bold new frogramme,” outlined in his inaugural address in January. The eport will be considered by the United Nations Educational, scientific and Cultural Organisation in Geneva next month. In an appendix to the report, the Food and Agriculture Organfeation estimated that under-developed countries would need it least 4,000,000,000 dollars a year from international funds for the next four years, to carry out their development plans.