The foreign economic policy of the United States is designed to promote our
own prosperity, and at the same time to aid in the restoration and
expansion of world markets and to contribute thereby to world peace and
world security. We shall continue our efforts to provide relief from the
devastation of war, to alleviate the sufferings of displaced persons, to
assist in reconstruction and development, and to promote the expansion of
world trade.
We have already joined the International Monetary Fund and the
International Bank for Reconstruction and Development. We have expanded the
Export-Import Bank and provided it with additional capital. The Congress
has renewed the Trade Agreements Act which provides the necessary framework
within which to negotiate a reduction of trade barriers on a reciprocal
basis. It has given our support to the United Nations Relief and
Rehabilitation Administration.
In accordance with the intentions of the Congress, lend-lease, except as to
continuing military lend-lease in China, was terminated upon the surrender
of Japan. The first of the lend-lease settlement agreements has been
completed with the United Kingdom. Negotiations with other lend-lease
countries are in progress. In negotiating these agreements, we intend to
seek settlements which will not encumber world trade through war debts of a
character that proved to be so detrimental to the stability of the world
economy after the last war.
We have taken steps to dispose of the goods which on VJ-day were in the
lend-lease pipe line to the various lend-lease countries and to allow them
long-term credit for the purpose where necessary. We are also making
arrangements under which those countries may use the lend-lease inventories
in their possession and acquire surplus property abroad to assist in their
economic rehabilitation and reconstruction. These goods will be accounted
for at fair values.
The proposed loan to the United Kingdom, which I shall recommend to the
Congress in a separate message, will contribute to easing the transition
problem of one of our major partners in the war. It will enable the whole
sterling area and other countries affiliated with it to resume trade on a
multilateral basis. Extension of this credit will enable the United Kingdom
to avoid discriminatory trade arrangements of the type which destroyed
freedom of trade during the 1930's. I consider the progress toward
multilateral trade which will be achieved by this agreement to be in itself
sufficient warrant for the credit.
The view of this Government is that, in the longer run, our economic
prosperity and the prosperity of the whole world are best served by the
elimination of artificial barriers to international trade, whether in the
form of unreasonable tariffs or tariff preferences or commercial quotas or
embargoes or the restrictive practices of cartels.
The United States Government has issued proposals for the expansion of
world trade and employment to which the Government of the United Kingdom
has given its support on every important issue. These proposals are
intended to form the basis for a trade and employment conference to be held
in the middle of this year. If that conference is a success, I feel
confident that the way will have been adequately prepared for an expanded
and prosperous world trade.
We shall also continue negotiations looking to the full and equitable
development of facilities for transportation and communications among
nations.
The vast majority of the nations of the world have chosen to work together
to achieve, on a cooperative basis, world security and world prosperity.
The effort cannot succeed without full cooperation of the United States. To
play our part, we must not only resolutely carry out the foreign policies
we have adopted but also follow a domestic policy which will maintain full
production and employment in the United States. A serious depression here
can disrupt the whole fabric of the world economy.