At this time, when the General Assembly is beginning its yearly session, we must recognize, in a spirit of cold reality, that there has been no relaxation of tension in the international situation during the time which has elapsed between the adjournment of the eighth session on 9 December 1953 and the opening of the present session.
2. One of the immediate beneficial effects of the end of the conflict in Indo-China should have been a relaxation of international tension, but it is not possible to say that such a result has been produced, as may be seen from certain incidents which have occurred in the international field since the Geneva Conference. One of those incidents was recently brought to the notice of the Security Council as constituting a threat to world peace. Encounters have taken place in Chinese waters between the armed forces of the Nationalists and the Communists, thus endangering peace. The situation in the Middle East is far from encouraging. If to all this we add the fact that the Foreign Offices of many countries have been more active than ever in negotiating agreements, mainly of a regional type, to serve as bulwarks against aggression, we can hardly say with conviction that there has been any great relaxation of world tension since peace in Indo-China was agreed upon in Geneva. My delegation is, of course, glad that hostilities have ceased in Indo-China.
3. Similarly, in 1953, there were great hopes that the world situation would improve after the conclusion of the Korean armistice. Why, then, have the peace negotiations in Korea and Indo-China failed to achieve the good results expected of them in the way of relaxation of international tension? It may be that world peace is contingent upon more weighty matters and that, until such questions are settled at higher levels, nothing can wholly succeed in allaying the fears of the world. The armistices achieved in Korea and Indo-China are no more than petty and partial solutions within a problem of far greater magnitude. Such achievements are worthless so long as the graver problems threatening world peace are left unsolved.
4. Nevertheless, in the midst of these problems a ray of hope has appeared in the unanimous agreement to study the proposal of the President of the United States of America relating to the use of atomic energy for peaceful purposes. This beginning of an acceptance by the Soviet Union may open a practical and sure way to future negotiations on the problem of the use of atomic energy in war. This hope was strengthened by the speech made by the Soviet Union representative on 30 September in this hall [484th meeting]. Let us hope that when in due course his proposals are put into clear and concrete form they will constitute an unequivocal step towards an understanding with the Western Powers on a problem whose solution is a matter of concern to us all.
5. A matter which is closely linked to the maintenance of international peace and security — and hence of capital importance to us all — is the report [A/2713] submitted to the General Assembly by the Collective Measures Committee on the session which it held this year. As everyone knows, this subsidiary body was entrusted with the difficult task of studying ways and means of strengthening the capacity of the United Nations to maintain peace. The organization of collective resistance against aggression is naturally of paramount importance in this connexion. The Committee has this year drawn up a series of general principles whose application by the United Nations it considers both useful and necessary in the matter of collective action. In formulating these principles the Committee was particularly careful to establish safeguards to guarantee the absolute independence of States and their freedom of action in taking part in any future collective action for the maintenance of peace.
6. International peace and security do not, however, rest solely upon the settlement of political problems but also on the solution of the problem of eliminating the causes of want among nations, in which economic problems play a large part. We may point out in this connexion, that in recent times economic progress in the different parts of the world has been very unequal. We are certainly pleased to see the fine recovery the majority of the industrialized countries have made, especially those which had to face the acute problems of post-war reconstruction.
7. With a few exceptions, however, the underdeveloped countries are still struggling with vast problems and it cannot be said that up to the present they have received the broad and positive assistance that their individual efforts deserve. I venture to say that although international public opinion may be conscious of them, the problems of the under-developed countries are not yet receiving the necessary attention.
8. It cannot be too often emphasized that the welfare of all is, like peace, indivisible, for any international structure based on the radical difference between the standard of living of the developed countries and that of the under-developed countries will always be vulnerable. The economic needs of the under-developed countries have been clearly stated, both in the United Nations and its specialized agencies and at various regional meetings. The under-developed countries need stable and fair prices for their exports, a sure market without the disturbing shadow of possible restrictions, and international financial and technical co-operation. During this session, the Assembly should give prior consideration to the problems connected with the public and private financing of economic development. My delegation’s attitude towards these problems has already been stated.
9. On the matter of private capital Venezuela has maintained, and continues to maintain, a clear-cut policy: private foreign capital is fully safeguarded by the State within the framework of our legislation. The maintenance of this favourable atmosphere and the absence of any restrictions on the free flow of capital and interest are effective contributions which we offer as a capital-importing country. We have always felt, however, that this action should be supplemented on the part of the capital-exporting countries by the adoption of measures tending gradually to decrease and eliminate the burden of taxation with which the income derived from these foreign investments is encumbered.
10. A flow of healthy capital investments which do not drive out the undertakings already working with technical and administrative efficiency in the country of investment but lead to the establishment of new sources of production which would be difficult to operate with national financial and technical resources would in many cases be a valuable contribution to the efforts the under-developed countries are making to improve the standard of living of their peoples. The greater part of the foreign investments in my country are of the type I have just mentioned. To this fact, and to the Venezuelan Government’s co-operation, we can to a great extent ascribe the atmosphere of confidence end security which has become traditional in Venezuela in this connexion.
11. Nevertheless, although the contribution of private capital is important, we do not feel that the problems connected with the foreign financing of economic development should be viewed solely from this angle. There are many projects in the under-developed countries which do not offer much attraction to private capital; again there are others which may not be suitable for capital; lastly, there are projects of great national interest which require a type of financing on conditions of time and interest winch cannot be offered by present foreign investment sources, either private or public.
12. It is for this reason that we feel that the proposals for the establishment of a fund for economic development and of an international finance corporation are of undoubted merit. Consequently, we have always supported any recommendation made for the establishment of such bodies. As is known, these recommendations are directed specially towards the countries which have the greatest capacity for contribution, so that they may continue to study the possibility of giving definite support to such necessary instruments of economic development.
13. While speaking of economic matters, I do not wish to overlook one fact which I consider to be of great importance to our Organization’s work: I refer to the setting up by the Economic and Social Council [resolution 557 F (XVIII)] of a permanent advisory commission on international commodity trade. As a member of the Economic and Social Council my country supported the establishment of that body because we considered that its activities would be of great value for the proper consideration of the important problems of international trade.
14. Lastly, I feel that the concern with which the United Nations and the various regional bodies are studying the main economic problems of the underdeveloped countries and suggesting solutions to them is highly encouraging. It is with great interest that my country has followed the work done by the Economic Commission for Latin America, some of which will be of value in the discussions of the Conference of Finance Ministers that is to take place in Rio de Janeiro in November of this year, at which the American States are to study the main economic problems affecting the countries of that area.
15. A well constructed programme of technical assistance as an expression of international economic cooperation will always be an effective contribution to the general improvement of countries in process of development. In fact, at this year’s sessions the Economic and Social Council has reorganized the Expanded Programme of Technical Assistance, the main virtue of the new system being that the granting of technical assistance will be co-ordinated with the national plans prepared by the respective governments. This reorganization has been made possible by the fact that, as the Expanded Programme prospered, governments have submitted better co-ordinated plans.
16. It is from this type of international co-operation that the countries in process of development are perhaps obtaining the most obvious results. That is why the Venezuelan Government is using technical assistance to help in the carrying out of the vast development programme which is now fully under way and which includes, among other undertakings, the setting up of an iron and steel industry, the maximum development of hydroelectric resources, the development of the national railway system, irrigation works, increased construction of popular housing projects, and, generally speaking, all types of work designed to raise the standard of living of the Venezuelan people — an indispensable basis for the social advancement of any community.
17. As regards the problem of the Non-Self-Governing and Trust Territories, the Charter shows how their legitimate development is to be guaranteed by their economic, social and educational advancement, which will of necessity lead to their political advancement, Perhaps the most effective thing that Member States can do at the present stage is to try above all to strengthen those bases of political prosperity and for this purpose to examine the recommendations of the Trusteeship Council and the Committee on Information from Non-Self-Governing Territories, with the firm intention of co-operating effectively in meeting both the traditional needs of such Territories and the new needs which will arise as the result of the advancement of these peoples. We must, of course, perform this duty in the firm conviction that these Territories are part of our world. We must remedy their ills in the spirit of Chapters IX and X of the Charter, adhering, that is, to the concept that national or local prosperity is beneficial and legitimate only when it contributes to the welfare of the world.
18. This year we have an excellent basis for doing good work on the Non-Self-Governing Territories in the report [A/2729] on economic conditions in those Territories submitted by the Sub-Committee of the Committee on Information from Non-Self-Governing Territories. Paragraph 110 of this important document refers to the setting up of the Commission on International Commodity Trade and to the work of that body, to which I have already referred. This is additional evidence of the great value of such a commission in making an active contribution to the solution of important political problems, which in many cases arise from economic factors-and particularly from the trade in basic commodities, from which the Non-Self-Governing Territories gain their livelihood.
19. It is to be hoped that these and other fundamental problems will be considered and solved in a true spirit of co-operation at this session of the General Assembly. It is in this spirit that my delegation is attending this session, as it has always attended the various meetings of the United Nations. The Venezuelan Government has shown the same spirit of co-operation in making available the necessary facilities for holding important regional conferences in Venezuela, the most recent being the Tenth Inter-American Conference held this year at Caracas. The enthusiasm and zeal with which my Government contributed to the holding of the important session of that body, which is the highest organ of the Organization of American States, is well known.
20. Mr. President, you have been elected President of this session of the General Assembly because of your personal merits and qualities. My delegation is happy to congratulate you on your well-deserved election and is sure that your experience, tact and equanimity will be the determining factors in making the deliberations upon which we are now embarking prove fruitful for our countries and for the United Nations itself.