Bigger Foreign Investments Urged On U.S.

Press, Volume LXXXIX, Issue 27073, 23 June 1953, Page 9

Bigger Foreign Investments Urged On U.S.

(N.Z. Press Association—Copyright)

(Rec. 9 p.m.) SAN FRANCISCO, June 21. Mr Harold Stassen, Director of the Mutual Security Administration, said today that United States grants and loans abroad must be replaced by ““ sound and durable economic relationship between the United States and the rest of the world,” chiefly through increased imports and capital investment abroad. » He told the eighth World Congress of the Junior Chamber International that grants and loans by the United States had been extremely important as a temporary balance between American exports and imports, “but everyone agrees that this is not a sound basis for a longterm relationship for either giver or recipient. “In its place,” said Mr Stassen, “there must be developed a sound and durable economic relationship between the United States and the rest of the .world. It will take time; it will not be easy; but it must be done.”

Mr Stassen listed the following six objectives:— (1) A major increase in United States private capital investment abroad. (2) Some increase in United States imports, especially those of raw materials. (3) Expanded United States travel and tpurist activity overseas. (4.) United States’ purchases overseas an ps and equipment needed by Allied forces throughout the world. (5) Increased wages in other industrial countries, which would expand consumer markets, stimulate production, and facilitate the upward climb of living conditions. (6) Better credit availability in other nations for small and new independent industries and enterprises, to facilitate their establishment and growth. Mr Stassen said a large increase in capital investment abroad was most likely to take place if American and

foreign laws were amended to give direct encouragement to investments. He said that the entire subject of increased imports would be studied by a , s £ ec * al Congressional commission. There is understandably an extreme nationalism and narrowism in the approach to economic questions in every country," Mr Stassen said. “The problem of imports must be carefully analysed and developed so that it does not disrupt internal economic conditions in the United States.”