Statement on Inter-American Economic Cooperation.

Our discussions have gone forward in regard to action designed to advance the economic relationships in the Western Hemisphere and to create new means and bases of economic cooperation among the American Republics. In some of its essential features, this program of cooperative economic action by the American Republics and possibly by other countries is being undertaken in response to new—but, we hope, temporary—developments in international relations. It is not intended to replace the program of reciprocal trade agreements which has been steadfastly pursued by the Government of the United States. We continue to believe that the basic principles of that program offer the most effective basis for mutually beneficial economic relations among nations, and we are determined to work, as circumstances permit, for their fullest possible application.

The program of action now being formulated involves a proposal, which is being placed before the American Governments for their consideration, to create by mutual agreement an appropriate inter-American organization for dealing with certain basic problems of their trade relations, including an effective system of joint marketing of the important staple exports of the American Republics. We intend also to proceed promptly and vigorously through many existing agencies to deal with various immediate difficulties now facing some American Republics. Appropriate legislative proposals necessary to make possible certain of the operations in connection with the projected program will be submitted to the Congress in due course.

These measures are a part of a program of economic defense designed to supplement our military defense program. They are intended as a further safeguard for the peace of this Hemisphere and as a means of protecting our economy and the economies of the other American Republics from the repercussions of the disturbed international situation.