Joint Statement on Economic, Industrial, and Technological Cooperation Between the United States and Romania.
ON the occasion of his official visit in the United States of America the President of the State Council of the Socialist Republic of Romania, Nicolae Ceausescu held talks with the President of the United States of America, Richard Nixon, on December 4 and 5, 1973, with regard to the development of economic relations between Romania and the United States.
Henry Kissinger, the Secretary of State, George Shultz, the Secretary of the Treasury, Frederick Dent, the Secretary of Commerce and other officials on the American side; and Manea Manescu, Vice Chairman of the Council of Ministers and Chairman of the State Planning Committee, George Macovescu, the Minister of Foreign Affairs, Vasile Pungan, Counsellor to the President and other Romanian officials also participated in discussions.
The two Presidents have emphasized the favorable development of economic relations between their two countries and they expressed their determination to promote and expand economic, industrial and technological cooperation on the basis of respect for sovereignty, independence, non-interference in domestic affairs, juridical equality, mutual advantage, and refraining from the threat or use of force.
President Nixon and President Ceausescu expressed their satisfaction with the remarkable rate of growth in United States-Romanian trade, which has increased more than fourfold since President Nixon's visit to Bucharest in 1969.
Both Presidents noted particularly the rapid growth in Romania's exports to the United States, due to the major efforts that Romania has made to promote its exports to the United States.
It was anticipated that the trade will continue to grow at the same pace or better during 1974 and the following years. The two Presidents stressed that the two countries have taken several actions to encourage and facilitate this growth in trade.
The two Presidents noted the importance of the meetings and talks to be held by President Ceausescu with American business leaders aimed at finalizing agreements and understandings and generating new interest in doing business with Romania.
The Presidents noted that, in recognition of Romania's status as a developing country the United States Overseas Private Investment Corporation is now prepared to assist in insuring and financing United States investments in Romania.
The two Presidents noted, that, since November 1971, when President Nixon determined that United States exports to Romania should be eligible for United States Export-Import Bank credits and guarantees, these credits and guarantees have effectively contributed to the expansion of trade. Private United States banks have also facilitated this expansion.
The two Presidents have noted the importance of both countries' participation in the General Agreement on Tariffs and Trade and the importance of the provisions and principles of this Agreement for their respective economic policies.
President Nixon reaffirmed his commitment to seek authority to provide most-favored-nation tariff treatment for Romania in recognition of the importance of this reciprocal principle as a factor in international relations and in the development and diversification of economic relations between the two countries.
The two Presidents further noted that Romania's accession to the General Agreement on Tariff and Trade, and to membership in the International Monetary Fund and to the International Bank for Reconstruction and Development were positive steps in broadening its world-wide economic and financial relations, and have created favorable conditions for collaboration between representatives of both countries within the framework of these international organizations, with a view to developing their economic cooperation.
The two Presidents welcomed the conclusion on the occasion of the visit of the Agreement between the Chamber of Commerce of the United States and the Socialist Republic of Romania Chamber of Commerce on setting up the Romanian-U.S. Economic Council, the Convention with Respect to Taxes on Income and Property, the Agreement relating to Civil Air Transport and the Agreement regarding Fisheries in the Western Region of the Middle Atlantic Ocean as well as specific conventions and understandings among Romanian enterprises and economic organizations and American firms with regard to economic, industrial and technological collaboration and cooperation in the fields of machine-building, electronics, chemicals and petrochemicals and other fields of mutual interest.
They also noted that discussions regarding American bondholder claims have been resumed.
In order to further the development of economic relations between the United States and Romania, the two Presidents approved the following guidelines:
1. The two Governments will facilitate, as appropriate, cooperation between interested firms, companies and economic organizations of the two countries with a view to the realization of joint projects, including joint manufacturing and marketing ventures, in the fields of industry, commerce, agriculture and natural resources, and other fields of mutual interest.
Areas of particular interest for such cooperation include machine-building, electronic and electrical industries, energy, metallurgy, mining and petroleum, chemicals and petrochemicals, light industry, foods, telecommunications, building materials, agriculture, and tourism.
2. Commercial and economic cooperation transactions will 'be effected on the basis of contractual arrangements between firms, companies and economic organizations of the two countries, and in accordance with the laws and regulations in force in both countries. Such contracts will generally be concluded on terms customary in international practice.
Such contracts and arrangements may encompass such matters as: --construction of new industrial facilities, as well as the expansion and modernization of existing facilities;
--joint manufacturing and marketing by means of joint ventures or otherwise;
--licensing or patents and exchanges of economic and technical information on products, designs and technology, subject to the laws and regulations in effect in the two countries, including laws relating to transshipment and reexportation;
--training and exchange of specialists and trainees;
--establishment of banks and banking agencies in the two countries;
--joint cooperative projects in third countries. Such contracts may provide for sharing and transfer of benefits, rights of participation in the management of the joint enterprises, procedures for dissolution of the joint enterprise, and return and repatriation of capital on mutually agreeable terms.
3. In their economic relations and in applying their policies within the framework of their laws and regulations, the two countries will take full account of the respective level of their economic development as well as the characteristics of the two economies. In this respect, it is noted that Romania, as a developing country, could be eligible for treatment accorded to developing countries.
4. Currency payments between firms, companies and economic organizations of the two countries will be made in United States dollars or any other freely convertible currency mutually agreed upon; other forms of payment may be agreed upon.
5. Except for a public purpose, assets belonging to nationals, companies and economic organizations of one of the two countries will not be expropriated by the other country, nor will they be expropriated without the payment of prompt, adequate and effective compensation.
6. To the extent permitted by the laws and international obligations of the two countries, equipment and materials imported temporarily into a country for purposes of contracts concluded between firms, companies and economic organizations of the two countries, will be exempt from customs duties, other taxes and any restrictions pertaining to importation. With a view to the development of economic cooperation, both sides will examine ways and means for the application of further customs and fiscal facilitation for goods assigned to, and resulting from cooperation projects within the provisions of customs legislation in force in the two countries.
7. Each country will provide nationals, firms, companies and economic organizations of the other country protection of inventions, trademarks and trade names in accordance with the provisions of international agreements in the field to which the two countries are parties.
8. Each country will accord firms, companies and economic organizations of the other nondiscriminatory treatment as regards payment, remittances and transfers of funds or financial instruments, in accordance with arrangements .to be worked out between the two countries.
9. Each country will facilitate the entry and travel of official representatives, experts, advisors and technicians of the other country employed in connection with commercial and economic cooperation transactions between their firms, companies and economic organizations, and of members of their immediate families.
10. Each country will facilitate participation of their nationals, companies and economic organizations in fairs and exhibitions, organized in the other country.
11. Both countries will facilitate the exchange of economic, commercial and technical information in fields of mutual interest, including information concerning trade in major agricultural commodities, among institutions, enterprises and economic organizations.
12. Both countries reaffirm their desire promptly and equitably to settle on an amicable basis commercial disputes which may arise. Commercial contracts should include provisions concerning arbitration of disputes resulting from commercial transactions.
Such understandings will stipulate that the arbitration be effected in accordance with the regulations of the International Chamber of Commerce in Paris and will designate as place for arbitration a city in a country other than the United States or Romania which is a party to the 1958 Convention on recognition and application of foreign arbitration decisions, or any other modality agreed upon in the terms of the contract.
13. With the view of broadening and supporting economic relations between the two countries, it was agreed to establish a joint Romanian-American Economic Commission which will meet annually, alternatively in Bucharest and Washington.
The Commission will consider questions and problems relating to the reciprocal establishment of business facilities to promote economic cooperation, as well as any other matters arising in the course of their economic, industrial and technological cooperation.
The Commission will also facilitate as appropriate the establishment of joint consultative groups between representatives of firms, companies and economic organizations of the two countries on matters of particular interest.
Richard Nixon, Joint Statement on Economic, Industrial, and Technological Cooperation Between the United States and Romania. Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/255806