1. It is my privilege to ascend this rostrum, at a very significant moment in history. Two factors, one of immediate interest and the other of a permanent character, give my statement here special significance: first, this is the culmination of ten years of work by the United Nations and, secondly, the Chilean people and their Government whole-heartedly support the principles of the Charter.
2. During the first ten years, of its existence, the United Nations 'has worked untiringly to fulfil the mandate conferred on it at San Francisco, namely, to maintain international peace and security and to promote the welfare of all peoples. It is therefore appropriate to recall the magnitude and importance of the work accomplished, to analyse and formulate in concrete terms the experience gained and, on the basis of these facts, to establish a pattern for future action. The steps already taken in the matter of the economic, social and cultural, action included among the purposes and principles proclaimed in the Charter have shown that the application of these principles constitutes the most effective method of maintaining peace.
3. Recent international conferences have proved conclusively that it is possible to rise above the ideological differences of the modern world which are the causes of the cold war. Among these differences, the most important is that concerning the concept of freedom. From the philosophical point of view, the United Nations has worked out an equation based on mutual tolerance and respect for the beliefs of others. It is only by proceeding on the principle that no one is infallible and that, consequently, what is true for us does not always hold good for others, that a workable formula for coexistence can be found. If, however, we push this principle to the point of sophistry, in other words, if we consider that 1 die truth of this proposition is purely relative, we shall find ourselves constrained to accept the principle of the use of force to settle international disputes. Obviously, the ideal would be to cherish what unites us as human beings and to eliminate by common accord all that divides us;
4. The democracies of the so-called small nations, which include Chile, constitute the fundamental moral bulwark of the great Powers. Both the spirit and the substance of the United Nations Charter and the Universal Declaration of Human Rights bear out this affirmation. Without this moral support, the great Powers would forsake those principles which are of the very essence of the United Nations, they would commit flagrant violations of the principles of the Charter and of human rights and would cause the small nations, united in purpose and jointly affected by this abuse of force, to band together in defence of their interests and thus to adopt a legitimate attitude which, in the final analysis, would express the original spirit of the United Nations.
5. My Government has made every effort, both in its foreign policy and in respect of social problems, to reaffirm its faith in the United Nations, and it has always acted in close co-operation with the Organization.
6. My delegation feels that we should support the recommendations of the San Francisco Conference, included in the agenda of the tenth session, regarding the convening of a general conference of the Member States of the United Nations for the purpose of reviewing the Charter, on the basis of the excellent documentation prepared by the Secretary-General.
7. From 1945 to the present day, there have been many changes in the international situation which have decided us in favour of a conference for the purpose of reviewing the Charter. The sharp contrast between the principles of the Charter and the conditions under which the United Nations has functioned leads us to consider the necessity of reviewing the text of the Charter. Nevertheless, my delegation realizes that perhaps the time has not yet come to make far-reaching amendments to the Charter. It is one thing to agree upon the right and the need to review it, but it is another thing to select the proper time to set forth the points of view which must be considered in the proposed review. The latter problem should be settled in the light of the political situation, for if a conference, of this type is to achieve constructive results and strengthen the application of the spirit of the Charter, it is essential that Member States should approach the conference animated by the desire to co-operate in such matters.,
8. Above all, consideration should be given, in the political sphere, to the possibility of eliminating the veto in respect of the peaceful settlement of international disputes, the admissiorLof new Members and the appointment of the Secretary-General. In these three cases, the use of the veto has resulted from an erroneous interpretation. of the relevant Articles of the Charter.
9. With respect to the admission cf new Members, the nearest possible approach to the principle of universality is essential for the united action of States in conformity with international law. It would be logical to hope that, in view of the overriding importance of this goal, the spirit which we might call the “Geneva spirit”, the new policy of conciliation defined and proclaimed in that city, will be translated into deeds, one of which should be the admission without discrimination of States possessing the qualifications which were carefully laid down in Article 4 of the Charter.
10. The ten years of the United Nations’ existence have served, inter alia, to emphasize the importance of regional arrangements within the existing system of collective security. In view of this fact, it would be well to redraft some of the provisions of Chapter VIII of the Charter, so that there could be no doubt about the procedure to be followed in cases of disputes between States signatories of a regional agreement.
11. Similarly, we should like to stress the opinion expressed by our Minister for Foreign Affairs at the recent San Francisco Conference, to the effect that the existing Economic and Social Council should be set up as two councils or bodies: an Economic and Technical Assistance Council and a Social and Human Rights Council. This arrangement would expedite the progress of the Council’s important work. We must bear in mind that the Economic and Social Council has become the most important body for the small nations, with their limited resources and low standards of living.
12. There is, however, another aspect of the review which is of equally great concern to my Government: the necessity for a critical survey of the institutions and procedures for stimulating economic development in the under-developed countries. These institutions, which were set up, for laudable purposes, during the immediate post-war period, should take advantage of the experience acquired in ten years of work and adapt their functions to the present economic and social situation. In recent years, significant efforts have been made to penetrate, directly or indirectly, the economic and financial fields and thereby to mobilize international co-operation to the fullest possible degree, for the greater prosperity of nations and a higher standard of living for all people.
13. All the representatives will remember the debates at Bretton Woods. At that time, it was considered to 'be the duty of all nations to help to create favourable conditions which would encourage a return to economic normality in the post-war period, with a few structural changes to eliminate the danger of a depression such as that of 1930 and 1931. The International Monetary Fund and the International Bank for Reconstruction and Development emerged from the Bretton Woods Conference. These two new institutions may 'be said to be the synthesis of the creative efforts of the planners of that time.
14. As we all know, the principal objective of the Fund was to create normal and healthy monetary conditions, to bring about convertibility of currencies, to eliminate exchange control and discriminatory policies and to promote free and prosperous international trade. The Bank concentrated, to begin with, on the reconstruction of the war-devastated areas, and subsequently it began slowly and cautiously to concern itself with economic development in the true sense of the term.
15. What have these bodies achieved in their ten years of work? To begin with, convertibility of currency is not the general rule. At best it is a rare exception. The Fund could do no better; it was not within its power to change economic and financial conditions. The Bank has granted large loans, but it has done so in conformity with banking policies, which, owing perhaps to the source of its funds, have followed a conservative criterion,
16. The total funds devoted to economic development have been of considerable assistance. Can anyone claim, however, that the Bank has solved the problem of economic development? Can it be said that this institution suffices to overcome any difficulties in die way of financing? It is not the fault of the Bank or of its directors that the reply must be in the negative, for the fact is that the problem is of such magnitude that the Bank, with all its goodwill, has neither the resources nor the requisite business methods to be able to cope with it.
17. The two institutions, which are specialized agencies of the United Nations, have also assisted Governments through their technical missions. This is another effective accomplishment. This work of technical assistance, over and above the loans, is impressive if it is viewed from the standpoint of the situation prior to Bretton Woods. Where there was a void, there are now two institutions functioning. Nevertheless, we must realize that the problems of economic development and its financing are beyond the scope of these institutions, and give them the appearance of being adjuncts to a broad economic and financial programme that is still non-existent, but that will inevitably have to be set up in response to the implacable demands of the age in which we live.
18. From the outset, the United Nations has brought about a radical reform in international economic and financial ideas. The surveys and research carried out by the department concerned, as also the outstanding work of the regional economic commissions, are achievements for which we must express our high appreciation from this rostrum, Member States and those which are not-yet Members have begun to speak a new language and for many of them it has been their first economic idiom. The theoretical studies compiled by the United Nations and the continuing research programmes conducted by the regional economic commissions would of themselves amply justify the existence of the United Nations, if any justification were necessary.
19. As a representative of Chile, I know best the work of the Economic Commission for Latin America (ECLA), I am certain that for all the countries of Latin America, the establishment of that Commission inaugurated a new stage in our common economic development, a period of insight into, the facts of economy and finance, a period during which possible alternatives are submitted or suggested for the solution of problems of a general nature.
20. Having said this, what are the net results of this effort? The United Nations does not formulate doctrines or dogmas; it merely presents the facts and shows how they are interrelated, or outlines their probable causal relationship. Its markedly objective work gives rise, however, to one cause for concern: the basic problems of, world economy will not be mastered until a bold approach is made to the question of economic development. This same opinion is to be found in the analyses and conclusions of the Economic Commissions for Europe, for Latin America and for Asia and the Far East, and even in isolated studies on Africa. This is, therefore, a general conclusion which applies equally to the various geographical regions concerned.
21. Let us consider, for a moment, our experience at the regional level. Following the Tenth Inter-American Conference, held at Caracas in March 1954, the first meeting of the Finance Ministers of the members of the Organization of American States was held at Rio de Janeiro in November 1954. As was natural, the chief topic of debate centred round the problem of the economic development of the region as a whole. It was decided that experts should study the possibility of organizing an Inter-American system, or bank, so that there would be an institution, at least at the regional level, to fill the vast gap in the facilities of the existing institutions. This project is in the planning stage, although it was impossible to enlist the support of the United States, which is economically the most important nation. A committee of Latin American experts, working in collaboration with the Economic Commission for Latin America, proposed that an Inter-American fund for the development of mining, agriculture and industry should foe established. This proposal, too, was rejected.
22. What do these plans tell us? That the Latin American region realizes that its rate of development is slow, that national resources to accelerate development are meagre and that the co-operation of the appropriate international institutions is valuable but limited and out of all proportion to the magnitude of the task to be accomplished.
23. In the early part of this year, there was talk of an International Finance Corporation, a subsidiary of the International Bank for Reconstruction and Development; We all know how this idea originated and how difficult it was to dissociate it from the concept of a fund for economic development. Nevertheless the two ideas were eventually separated. Accordingly, there will shortly be a new international institution for the granting of loans, particularly to private undertakings and without State guarantees. Its total capital will be $100 million, from which it will serve all geographical regions. In other words, little progress has been made.
24. If, in addition to all the foregoing projects, we add technical assistance — both the United Nations Expanded Programme of Technical Assistance and the special programmes, we shall have a more or less complete picture of this collective effort to deal with economic and financial problems. I repeat that every one of these activities represents something constructive, and that it is not the fault of the individual institutions that their operations have proved very modest in comparison with the magnitude of the problems confronting them.
25. Apart from action taken at the international level, the co-operation of certain countries, and particularly that of the United States, has been of decisive influence. The Lend-Lease Act, the Marshall Plan and the Mutual Security Program are too well known to Members for me to expatiate on them. This generous co-operation, without precedent in history, was designed to achieve two or three well-defined objectives, but none of these was primarily concerned with the economic development of the under-developed areas, nor could they be so, considering the grave political situation which gave rise to this programme. I shall do no more than draw your attention to this fact.
26. If we could make a comprehensive study of international co-operation in economic and financial affairs over the past ten years, the measures taken on the regional and national levels, the generous collaboration of certain States, as well as other determining factors, it might perhaps be possible to arrive at some general conclusions. It is a fact that, on average, production indices have exceeded the pre-war figures. It is equally true that substantial progress in relation to the pre-war period has been registered in the under-developed regions. Nevertheless, as the Secretary-General pointed out to the Economic and Social Council on 12 July 1955, “although the international economic disintegration that marked the immediate post-war period had been halted, only a limited measure of economic integration had been achieved”.
27. What has happened? Why has economic integration not been achieved in the last ten years? Some think that this integration has been jeopardized and impeded by the fact that international trade is divided into blocs. This field bristles with complications of every kind, but the progress achieved in it seems to indicate that although a world trade system would facilitate commercial interchange, this advantage would not solve the fundamental problem. It is not a matter of quantitative changes but of qualitative corrections.
28. In the same speech, the Secretary-General said that “unfortunately, the progress made by the industrial countries had not been matched by the under-developed countries, either in respect of economic stabilization or in respect of economic growth”. In other words, the fundamental problem in the economic field is that production, greatly expanded by technical progress, is riot finding the necessary consumer markets. The constant threat hovering over the peoples of the world is not a crisis of over-production, but one of under-consumption. As long as there are no dependable and expanding markets to absorb the growing production of the world, we shall continue to witness the spectacle of this ruthless competition for export markets, and there will continue to be trade and exchange restrictions which will indirectly enable certain Governments to subsidize their products in the scanty foreign markets. Until this problem is given a priority solution, it is idle to speak of free international trade, convertibility of currencies or freedom of transport. This is a fact which is realized by each and every one of the industrial countries concerned, but which has not yet gained international recognition.
29. Some there are who disapprove of the emphasis the under-developed countries place on the need to accelerate their economic progress and of their pressing for increased international co-operation. Others believe that everything can be reduced to technical assistance. We should try to understand that the ideas which have hitherto prevailed on these subjects have become obsolete, and that what is really needed is a reappraisal of world economic and financial conditions. We must realize that economic development is to the advantage not of the backward countries alone, 'but of all countries, especially those which are so anxious to obtain consumer markets.
30. The tenth session of the General Assembly now has such an opportunity before it. The Second Committee is to study the question of the establishment of a Special United Nations Fund for Economic Development. The work of research and detailed technical analysis has been done. What remains to be done? Simply to take action. Is there or is there not a conviction that the progress of all backward areas is a necessary condition for the prosperity of the industrial countries? If those countries do not need these markets and have to maintain an export war with all kinds of subsidies, it is urgent for them to decide on the kind of international co-operation they want and the organization that would be most suitable for this purpose.
31. There have been meetings at the highest international level to discuss political problems which endanger world peace. Some slight but definite progress has been made, and this has created a certain feeling of confidence. This has been the first step. We should not forget, however, that the search for peace calls for other measures too which, together with political action, will complete the circle of solidarity and understanding between nations.
32. The United Nations Charter is very clear when it states the doctrine of the indivisibility of peace and prosperity. Our Organization should exert its influence, or take some practical step, to have critical economic and financial problems included in the agenda of meetings at this high level, so that the statesmen concerned could determine the nature of the economic difficulties threatening the various parts of the world, and the extent to which the more speedy economic development of the under-developed areas would help, in the interests of common prosperity, to create confidence and encourage coexistence by promoting the welfare of nations and their economic stability.
33. As far as my own country is concerned, I should like briefly to draw the attention of the Assembly to a phenomenon which constitutes a perfect example of contemporary economic conditions and which may prompt us to study and to find out the causes and effects of a distressing situation. The Assembly is aware that Chile is suffering from a serious inflation. It is something to which we cannot close our eyes and in connexion with which we cannot shirk our responsibilities. Nor can this situation be attributed to factors that are exclusively or predominantly political. The causes of inflation in our country are clearly sociological in origin, and it would be a mistake to regard the situation with pessimism.
34. From all points of view, statistics reveal an extraordinary peak in the economic development of Latin America, and this has been confirmed by the magnificent research work of the Economic Commission for Latin America (LCLA). Nevertheless, most of our countries have borne an unmistakable stigma for centuries, the stigma of manifest social inequality. Strictly speaking, there was no middle class in some Latin American countries until well into the present century, and in some others it would be rash to presume that such a class exists even yet.
35. In this respect, Chile has undergone an extraordinary transformation during the last 20 years. From the social point of view, this positive transformation has brought about a surprising degree of equality between classes: the middle class has increased and become stronger, while the standard of living of the working class has improved in geometrical progression. To our credit, this historical development has taken place without convulsions or violence, and has been characterized by an absolute respect for the democratic institutions which are the pride of my country.
36. From the economic point of view, however, as was the case in France during the years following the First World War, this development has brought about an enormous increase in the purchasing power of the classes which have risen in the social scale, an increase which has substantially out-distanced the economic development of the country. The number and density of Chile’s population is not such as to allow any cheap and efficient light industry to prosper there. The demand for consumer goods must be satisfied with foreign exchange derived from the export of products which are subject to the fluctuations of international prices. It is well known that instability is the chief cause of inflation.
37. Chile has contended resolutely with these difficulties and has solved many of them by encouraging the industrialization of the country and by putting into practice the recommendations of the technical agencies of the United Nations, especially those of the Economic Commission for Latin America. However, in order to bring about a genuine rise in the standard of living of its population and to consolidate these gains by creating new sources of wealth, it must be able to dispose of its products on the world market on more equitable terms than those prevailing at present.
38. After ten years of experience, the United Nations now possesses all the necessary background information to make an exhaustive review of the agencies which were created to solve these problems and of the methods I hitherto employed, at the international and regional levels, to eliminate the causes of the poverty and distress of the great masses of the population. It is the duty of j the United Nations to make use of this experience and to apply fully the principle of the Charter that peace and prosperity constitute two parts of an equation which is ineffective if they are separated. To ignore the unity and interdependence of political, social and economic facts is to be guilty of an inexcusable mistake which the statesmen at San Francisco were careful to condemn any action which ignores this organic unity will be purely artificial and is doomed to sterility.
39. If the Charter is to be reviewed, it should be with a view to creating contractual obligations between States that will lead to positive co-operation in the field of economic integration. The Commission on International Commodity Trade was established in accordance with this principle.
40. In Chapter of the Charter, which defines its purposes and principles, care was taken to establish the following as one of the most important objectives of the United Nations: “To achieve international co-operation in solving international problems of an economic, social, cultural, or humanitarian character, and in promoting and encouraging respect for human rights and for fundamental freedoms for all without distinction as to race, sex, language, or religion.” The international co-operation achieved by the United Nations in solving the type of problems indicated in this paragraph has produced results of obvious importance. It is equally true that the number of problems that threaten collective peace and welfare makes it necessary to seek more effective solutions than those which have been proposed during the first ten years of the Organization.
41. Fortunately, in various matters connected with this subject, there is a general awareness in our Organization that we must make faster progress in the search; for appropriate and effective solutions. One proof of this awareness lies in the fact that items such as the following are again appearing on the agenda of the. Assembly: “Question of the establishment of a Special United Nations Fund for Economic Development”, and’ “Question of the establishment of an International Finance Corporation”. My delegation will co-operate; whole-heartedly in completing these plans and ensuring their implementation. If the results achieved are not sufficiently timely or effective, it will be advisable to consider the necessity of calling a world economic conference under the auspices of the United Nations, which will assume the responsibility of proposing method that will enable us to overcome our present difficulties
42. In the social field, it is satisfying to find that the second item on the agenda of the Third Committee is "Draft International Covenants on Human Rights”. The coexistence within the United Nations of the representatives of the various civilizations scattered over the face of the globe has been possible, fundamentally, because all the civilizations share the common denominator of one and the same spiritual need, which does not permit compromises or delays in the task of promoting respect for human rights. It is this that made it possible, at the third session of the General Assembly [183rd meeting] to obtain the impressive unanimous vote in favour of the Universal Declaration of Human Rights, which of all the projects sponsored by the United Nations is the most important from the moral point of view. Nevertheless, this Declaration belongs in the field of abstract principles arid the obligations attaching to its text are purely moral. The United Nations, therefore, has understood the need to sponsor the formulation of covenants on human rights, which will give these rights legal validity and make their enforcement an international responsibility.
43. Without the realization that these rights are inalienable and that disregard of them would bring about the downfall of civilization, the international community, lacking moral stature, would disintegrate. The small nations would have no place in an organization that served only as a battle-ground for all kinds of material interests and any such conflict would inevitably lead the great Powers into violence and destruction. Thanks to the moral backing of the small countries, the United Nations is a bulwark of peace and conciliation and is aware that if it is to accomplish its mission it must encourage respect for human rights.
44. The covenants already drawn up deserve, therefore, to 'be given priority, and we should endeavour to complete that task during the current session. That endeavour would be in the interests of all States, large and small, and would enhance the prestige of the United Nations.
45. In the course of history, mankind has witnessed the rise and fall of empires and the collapse of systems and values which had been conceived as the expression of basic truths. The new moral code given the world from Mount Sinai in the Ten Commandments proclaimed principles which have successfully withstood the test of a hard struggle against all forms of slavery and savagery, and have become identified with the very essence of civilization. The principles proclaimed by the United Nations Charter ten years ago, put to the test by the harsh experience of the cold war, still stand today, and we know that they exercise an ever-increasing influence on the conduct of the peoples.
46. Let us bend our will and our strength in this newly-opened tenth session of the General Assembly, without fear or flinching, to promoting the cause of peace, economic development and the observance of human rights, and we shall become more worthy of the confidence of the peoples.