Belgium

When we try to understand our times, we soon find ourselves in a bitter quandary. The simplest questions remain unanswered. Are we at peace or at war? Are we living in a period of economic progress or of recession? Are the principles of law and justice in which we believe gaining or losing ground? 13. The United Nations is fighting in Korea; men are dying every hour of the day. Where men are not killing one another, the tactics of the cold war fray men’s nerves and harden their hearts. Even the most peace-loving nations are forced to rearm on a gigantic scale to ward off an ever-growing threat which hampers postwar recovery and retards or even prevents the advance towards better standards of living. 14. Economic activity remains intense in large areas of the world, but even where the danger of inflation is not increasing, there is a feeling that the balance is precarious because no lasting solutions have been found for the fundamental problems of economic relations among peoples. In many countries there is an apprehension, if not of crises, at least of recessions, some of them actually taking place, some only potential. 15. Never have the rights of man been so widely proclaimed, but it can hardly be said that they are being satisfactorily implemented. 16. No doubt it might be replied that an equally gloomy general picture could be drawn of any period in human history. Our era, however, has one characteristic which sets it apart from all others: never have men been so much responsible for their own fate as they are today. What has not changed, however, is the power of ideas. In our times, as in all others, men are closely dependent on ideas. In the final analysis, the civilizations that survive, grow string and endure in the ones that succeed in evolving the highest and purest motives, while maintaining the closest possible contact with human realities, material or other. 17. It is for this reason that I believe in the value of general discussions, such as those which take place in this Assembly year after year. They are useful not only because they offer the occasion for explaining certain things but also because they allow us to set forth before the most representative audience in the world the principles on which our actions are based and the facts to which they are applied. 18. Taking a modest part, on behalf of Belgium, in this joint effort of the Members of the United Nations, we shall try to distinguish a few guiding principles. They will be divided into two groups: the first concerning political and moral problems, and the second some important economic and social questions. 19. In the political sphere, the overriding question to which we are forced to return year after year, and each time in the same atmosphere of harrowing anxiety, remains unchanged: the defence of peace. The fundamental idea on which the United Nations is based — the idea of collective security — seems to us today to be wiser and more necessary than ever. Is there one among us who is not profoundly convinced that if for any reason the ideal of collective security were to grow dim, the danger of war would be immensely increased? 20. It is in defence of this ideal, that is, for the protection of peace, that United Nations troops are fighting in Korea. Unhappily, the Korean drama is being drawn out. The quest for the terms of an armistice — surely the object of all our hopes — still continues. This is certainly neither the time nor the place to repeat what has been so clearly and sometimes so courageously said in the First Committee, where there have been long debates on the last remaining obstacle to an armistice — the forced repatriation of prisoners of war. Yet I cannot help noting, with surprise and sadness, that some of our conceptions of human rights do not appear to meet in all quarters with the response which their generosity should have evoked. Still, in spite of everything, we are not debarred from cherishing the hope that a settlement will be reached. On balance, it seems to me that, notwithstanding the repeated disappointments and misunderstandings, wisdom requires that we should leave every door open. 21. So much goodwill is being lavished on efforts to find a formula which, while respecting the principles on which our action is based, would give the parties on either side the guarantees they demand, that it cannot be wasted. Perhaps we are on the eve of a decision which, if favourable, would be a first step towards a just peace. The day such decision is reached, the principle of collective security will once again have been vindicated. Let us therefore wait and hope. 22. I should like to express before you our feelings on another subject. I refer to the debates concerning the Non-Self-Governing Territories. During the last few years these debates have taken a form which is ill in keeping with the spirit of co-operation that the Members of the United Nations pledged themselves to maintain among themselves. The resulting uneasiness might, in the long run, even injure the United Nations itself. 23. We often hear colonialism spoken of as an evil which should be eradicated with the least possible delay. If the evil still existed, I should agree with those who denounce it. The word “colonialism", as traditionally used, conjures up a picture of the exploitation of people at a lower stage of civilization by others at a higher stage. 24. Belgium is among the resolute opponents of that kind of colonialism. It has fought against it, not only with words but with deeds. As long ago as 1909, King Albert I said in his speech from the Throne: "For a people who love justice, the effort in the colonies can be nothing else than a civilizing mission". We have followed the path which had been mapped out for us. We abhor all forms of exploitation of labour, and more particularly of labour supplied by backward indigenous peoples. But we believe that with a few rare exceptions — which, incidentally, do not always occur where people tend apparently to look for them — this type of colonialism is obsolete. 25. I hope that no one in this Assembly will confuse colonialism as thus defined with a different and indeed contrary activity, based on the highest motives and entirely consistent with the provisions of the Charter. In saying this I am thinking of the systematic exertions made by a highly developed people with the object of helping the backward indigenous peoples under its administration in their efforts towards political, economic, social and educational advancement. 26. The Charter itself regards this action as a "sacred trust” — this is the term it uses. In our eyes, this sacred trust is not limited to the few States which administer the territories hitherto known as colonies. It is a trust binding on any State, no matter which, in whose territory there live native peoples who have not attained the normal level of civilization. If I am not mistaken, more than half the States represented in this Assembly are in that position. Is there one among them which would think of being indifferent to the fate of these backward populations or disregarding the character of its obligations towards them?! do not think so, and I am glad to be able to note that several of them have already established services which apply themselves to this task with enthusiasm and devotion. By way of example, I might mention, among others, the authority responsible for the Scheduled Tribes in India or the service for the protection of Indians in Brazil, 27. There can be no doubt that these great countries and the services they have set up realize the difficulties of such a "sacred trust", the patience and perseverance which it requires — above all in the case of peoples living in tropical forests or almost impenetrable jungle. An immense effort is needed to inspire them with confidence, disarm their hostility, pacify them, eradicate barbarous customs, build roads, introduce hygiene, combat illiteracy and so on. We are familiar with these problems too, because we have been trying to solve them in the Belgian Congo for generations. 28. However, since these problems are common to all States which bear the sacred trust spoken of in the Charter, what basis is there for distinguishing between them? Why, so far, have only a few of these States sent information to the United Nations, and not the rest? Is it not obvious that they should all be invited to pool the results of their efforts, so that they may reap the benefit of each other's knowledge and experience? 29. All backward peoples whose advancement is in the hands of representatives of a more highly developed race have the same rights; they ate entitled to the same protection. Under the League of Nations, they received it; why should we deprive them of it in the United Nations? To claim that only some of them ought to receive the rights proclaimed in principle in the Charter would be unfair to all the rest. Such, in our view, is the meaning and scope of our; Charter. Let us all see to it that its greatness is not diminished. 30. Let us turn now to the economic and social aspect of this brief analysis. No matter how confused and complex the present world economic picture may appear to the observer, one outstanding truth can be reaffirmed with greater assurance than ever; that is, the close and striking interdependence of all regions and all national economies, no matter which. 31. Of course, in speaking as I do I am thinking particularly of the free world, that is to say, of that part of the world which is not held in the autarkic grip of the communist regime. This does not mean that the communist countries, despite their wish to isolate themselves, escape completely from the rule I have just mentioned. If we went to the heart of the matter, we should soon see that a number of major laws — for example, those relating to the increase of productivity — prove to operate under the communist system as in the free regimes. In certain analogous cases, the same causes produce the same effects on both sides of the Iron Curtain. Thus, for example, the Soviet economy is suffering like our own from the inevitable consequences of large-scale rearmament; I might compare this rearmament to an ogre whose appetite is satisfied only at the expense of the standard of living of the people, irrespective of the regime under which they live. 32. However, in order not to start unnecessary discussion, let us confine our observations to the free world. The analysis of this economic interdependence of the peoples can be approached from many angles. I shall consider only two or three, while recognizing that other angles of approach would be quite as important and as useful. 33. First I should like to speak of Europe which, despite considerable progress, has not yet resumed its rightful place in the world. There, we shall encounter one fact which dominates the problem: the reversal of the positions of debtor and creditor among the great economic Powers. Our analysis will then lead us logically to examine certain problems which face, on the one hand, the countries which are producers of raw materials and, on the other, the under-developed countries. Let us, then, begin by examining the position in Europe. 34. At the end of the war, the European peoples were truly confronted with an overwhelming task. They had, simultaneously, to rebuild their ruins, to put things into working order, to increase their production and to raise the standard of living of their inhabitants. To all this was shortly added the necessary effort for defensive rearmament. 35. Europe’s economic recovery was of course essential to the Europeans themselves, but it was not less so for the nations of the American continent, and it was quite as pressing from the point of view of the economic and political equilibrium of the world as a whole. Such recovery depended on one condition, one major condition which was recognized by all, at least in theory; the need to transform Europe into a single market, to create one vast economic space where goods, merchandise, men and capital could circulate freely, with adequate safeguards. a 36. The Organization for European Economic Cooperation (OEEC) has devoted itself to bringing about this condition. It has been pursuing this aim unceasingly for years. 37. Unfortunately, after an initial effort towards recovery — and I venture to think that its boldness has been under-emphasized — Europe began to stagger under the burden. Aid came to Europe from the United States in the form of the Marshall plan. The four years which the authors of the Marshall plan intended it to cover have now elapsed. In retrospect, I think it must be admitted that the plan was necessary and that it has fulfilled its purpose. But it is also probable that its authors were right to confine its conception and its aim to a limited period of time. It is clear that other methods of mutual co-operation should be found. I consider that the time has come to seek them in all frankness. 38. Allow me to recall — and surely it is worth while doing so — that the European countries, with the help of their friends across the Atlantic, have, in order to ensure the rehabilitation of their economic position, performed deeds and taken steps which required courage and boldness. The process has involved three main stages. 39. First, the eighteen countries of the Organization for European Economic Co-operation succeeded in reaching an agreement — and it is not so easy for eighteen countries to agree — to eliminate up to 60 to 75 per cent of the quantitative barriers to the circulation of goods. 40. Secondly, they created among themselves a European Payments Union. This met with many difficulties; it worked under conditions which demanded an extremely lofty view on the part of certain Powers of their interests and duties. It has been in operation for about two years. It serves the economy of Europe every day. 41. Finally, some European countries found a way to link their economies more closely. You will excuse me if I recall the Benelux customs union, since it was the first one, From the very outset it was symbolic, and it is still developing; it would be unfair not to mention it. Today, however, I should like to emphasize the importance of the European Coal and Steel Community — by force of habit we still call it the Schuman plan — which was recently formed by six countries and with which we may hope that other European peoples will establish an ever closer and more organic relationship. 42. A little more than a year ago, the Organization for European Economic Co-operation realized that success could be assured only if the eighteen member countries, uniting their efforts, were able to increase their total production considerably. They set themselves a target which they felt confident they could reach; a 25 per cent increase in five years; this was moderate, sufficient and necessary. But recent months have not borne out the hopes that had then been entertained. The total production of the European countries, instead of increasing, is, on the average, slowing down. The gap between United States and European production, which had begun to narrow, is once more widening, and the payments deficit in trade relations between Europe and the United States is still excessively heavy. 43. In mentioning the dollar deficit, we have probably put our finger oh one of the most sensitive spots of the world economy. It is this deficit which reflects the lack of balance in the relations between the dollar and the non-dollar areas. Clearly, such a lack of balance cannot be permanent. The balance will have to be redressed. But how? 44. Let us begin by stressing the obvious fact — almost a platitude — that a creditor country can really benefit from its position only if it accepts settlement of its claim in any form. How, then, can the countries of the dollar area, and in particular the most powerful of them, the United States, receive the payment of their credit balance? 45. In gold? It is no secret that most of the gold of the world is already concentrated in one place, and that the fraction of the precious metal which remains in the hands of the non-dollar countries is scarcely sufficient to enable their monetary systems to operate approximately normally. 46. Is there another way? The creditor country could, of course, waive payment. It could make the debtor a gift of the debt. But is this a long-term policy? Certainly not. The creditor could not entertain it, and neither could the debtor. From the point of view of the creditor, this would mean depriving him of the actual advantage of his position, of the fruit of his efforts to improve and to increase production. From the point of view of the debtor, the reason is perhaps less obvious, but just as weighty. First of all, there is a normal consideration: in the final analysis, what has not been earned and deserved soon loses its value — if not its real value, at least its psychological value. But even from a strictly economic point of view, movements of goods with no immediate or long-term counterpart are not exchanges. In such circumstances, one of the necessary elements for the establishment of a true economic balance would be lacking. In the long run, its lack might prove to be of major importance, 47. Accordingly, if a country hopes, as it legitimately may, to benefit from its creditor status, it must agree to be paid eventually, a little sooner or a little later, in property, goods of services. 48. The creditor is indeed in a privileged position in our modern world, but his position is not as simple as might be imagined at first sight. We have experienced this ourselves, on a smaller scale, in Belgium. That position involves duties and obligations as well as rights. The creditor’s interests are closely bound up with the debtor's, and there are rules which govern the position of the creditor country at the international level, when that position is, on balance, a permanent one. These rules can, I think, be reduced to two. The first is that it is normal for a strongly and permanently creditor country to show an adverse trade balance, in other words, to import more goods than it exports. The second rule is that there is an inducement for the creditor country to export investment capital to the debtor countries, which is likely to help the debtor countries to produce the goods necessary for the satisfaction of the debt. 49. I must apologize but, for the sake of clarity, I have to pursue this analysis a little further. 50. In order ultimately to discharge their accumulated debts, the debtor countries must therefore in their turn export goods and services to their creditors. However, before they can do so, they must first produce a surplus of exportable goods and, what is more, produce them at a cost which makes such exports feasible, acceptable and marketable. 51. On the other hand, experience dating back as far as our own statistics shows that there is no such thing as a perfect trade balance, either bilateral or multilateral; the balance always inclines to one side or the other, subject to reversal when the general trend shifts. Even when a creditor country, applying the first rule I have mentioned, imports more than it exports, the difference does not, save in exceptional cases, cover the aggregate of the sums due. This means that another factor is required to bring payments into balance. This other factor is. credit. I need hardly say that the credit used in this way can assume a great variety of forms. But in the case I am describing, one particular form is inescapable, it is the long-term investment of capital in the debtor countries. 52. These are fundamentals. They are well known to you. The international economy has never been able to evade them with impunity, nor will it be able to do so at any future time. If it is our true wish, as it is our duty, to restore conditions of economic equilibrium in the world which favour expansion and progress, we shall have to accept both the truth of these rules and the need for applying them. 53. The difficulties will, of course, multiply as we pass to the sphere of practical implementation. Thus there is no doubt that long-term investments, to be of real value, must be made at rates of interest and on terms of amortization which do not threaten to increase the debtor countries’ deficit before these new investments have succeeded in increasing their productivity. Be that as it may, I think I can state without fear of contradiction that a country which is mainly a creditor cannot hope to export more than it imports, to refrain from making large investments abroad, and at the same time expect repayment. 54. In short, one conclusion which in my opinion can be immediately deduced from the general views I have just set forth is that It is high time to find ways and means for bridging the gap between the dollar and the non-dollar areas. This is of equally direct interest to creditors and to debtors, and the experience of the past provides lessons which it would be well to examine without delay. 55. In order to do so, it would surely be common sense for the leaders of the main creditor countries to meet the leaders of the main debtor countries round the same table and together, in a spirit of mutual cooperation, to inquire how their own legitimate interests and, at the same time, the interests of the international community could best be served. This suggestion has been made before; it has been reiterated quite recently from both sides. Let us therefore hasten to adopt it. 56. This brings us to another, aspect of our analysis. The flexible and vital equilibrium which we should like to see in international trade will, in our opinion, be reached only through a policy of expansion, not of restriction. It is true that we shall have to concentrate once more on the removal of barriers hampering the circulation of goods. We shall be faced once more with that all-too-familiar list — excessive, unstable or prohibitive customs duties, improper administrative practices, quotas, currency restrictions and so forth. All that is true. But is it not time to consider other, more direct and more constructive methods? Now, if ever, is the time for a constructive imaginative effort, not, as in the past, to curb but to encourage trade. 57. Among these methods there is one to which I would once again draw your attention today. There is nothing new about it; it has been used before and fortunately, therefore, is supported by the results of previous experiments which, in my opinion, have been successful. I am thinking of the possibility of stabilizing the prices of some of the principal international raw materials. When I say “stabilize”, I am by no means suggesting that the prices of these raw materials should be frozen at an arbitrary level. On the contrary, we must find formulae to allow for justifiable and reasonable price movements. The economic value of such variations in certain, circumstances can easily be proved. It would be a mistake to attempt to put certain aspects of economic life into a straitjacket. Yet producers and consumers alike are anxious to avoid abrupt and excessive fluctuations in the price of basic commodities. These fluctuations lead to dislocations and repercussions harmful Ho both parties, as has recently been proved by the bitter but convincing experience of the Korean war and rearmament. 58. Of course, such a result can be achieved only through carefully weighed and sound international agreements which take all the interests involved into account. By way of clarification I should like to offer a simple example: the wheat agreement. Is it a perfect instrument? By no means. Will it survive all ordeals, all difficulties? I should hesitate to make such a prediction. Nevertheless, as it stands, with its disadvantages and weaknesses, it has rendered undeniable services to all concerned. I can speak about this, because I belong to a country that is, on the balance, a heavy wheat importer. I consider that the authors of this agreement found a practical formula. Why could not similar agreements be devised for other essential products? On this point, too, suggestions have come from various quarters; searching studies have been carried out, by the Organization for European Economic Co-operation among others, and the sooner these questions are taken, up, the better it will be. 59. We have now come to our last point. Let us for a moment consider the preoccupations of the Underdeveloped countries. 60. Due prominence should be given to the great efforts made in this field under the auspices of the United Nations to promote, first, technical assistance and, secondly, financial aid to the under-developed countries. Some first steps have been carried out, with initial success, and constructive solutions are emerging. This effort in international co-operation is of paramount importance, and we Belgians unreservedly support it. 61, We do so for many reasons, of which I shall mention only one. Since we have to export in order to live — to live in the literal sense of the word — we realize that we can sell only to those who are able to buy. We know — because we have experienced it so often — that the more goods a country produces, the greater its willingness, and the greater its ability, to buy other goods outside its own frontiers. It is therefore with sincere conviction that we wish to see an increase in economic production and an improvement in the standard of living throughout the world and the introduction of the best techniques of both agricultural and industrial production in all countries without exception. 62. This is the spirit in which we have followed the work relating not only to technical assistance but also to financial aid to the under-developed countries. Among the methods which have been studied there are four which, in our opinion, should be singled out for special mention. 63.. The first relates to the action taken by the International Bank for Reconstruction and Development. We are aware of the invaluable services already rendered by this agency, and we do not doubt that its activities will continue to expand in the future. 64. Secondly, we have followed, perhaps with some scepticism, but certainly with sympathy, the suggestions put forward by certain countries for the establishment of an assistance fund, to make capital available to under-developed countries on terms which would constitute no more than a very small or negligible burden for those countries. If that is possible, so much the better. 65. Thirdly, we believe that the formula for the creation of one or more international financing institutions may, in certain circumstances, and for a carefully specified period" of time, be fully justified by the facts and make it possible to solve important individual problems. I would recall, in this connexion, that this idea was considered and extensively studied long before the war. I am still convinced that attractive formula, though of limited scope, can be devised along these lines. 66. But when we review the totality of the problems which have to be solved, when we measure the magnitude of the needs to be met, we cannot but feel that all these means, however necessary and however useful, are still, even when pooled, entirely inadequate. If we do not wish to postpone until a too distant future the economic and social effects which we expect from these measures, there must be a considerable movement of investment capital. Is there a possibility of reaching the desired levels by using only the methods to which I have just referred? Certainly not. 67. That is why a fourth method has been mooted, the resumption and expansion of private investment. But the problem of private investment throughout the world calls for the widest and most realistic approach. It concerns the under-developed countries, admittedly, but beyond them it affects the whole free world. Such movements of capital will be resumed only if a whole series of conditions is gradually fulfilled. 68. Some of these conditions are of a very general political nature. It is clear, for example, that the stronger the threat of war, the less inducement there will be for capital to look for probably advantageous but definitely risky opportunities of investment abroad, 69. Certain other conditions are luckily more within our reach. These investments ought to be freed from the risks which derive not from business .itself but from the will of the political authorities, that is to say, in the words of an old legal expression — which incidentally corresponds to a reality as old as the world — the hazards of acts of State. Shall we reach this goal? I do not know, but I would rather put the question in another way, why, after all, should we not reach it? 70. At all events, the sooner we face these problems squarely, the sooner we are likely to be able to solve them. What chance have we of solving them? Even the few points we have touched upon seem to form an intimidating array. And yet there are many other questions of equal urgency. For example, we may mention once more, first, monetary problems in the proper sense of the term — relative currency exchange rates, the inter-convertibility of currencies — and, secondly, the distressing inadequacy of the production of the commodities required for feeding the peoples of the world. 71. But we must stop. We have mentioned a few practical suggestions concerning a few isolated points. Let us try to draw a general conclusion. In these general considerations I have felt it necessary to match, as in real life, ideas and principles on the one hand, and the most concrete realities and anxieties, on the other. The conclusion which emerges might appear either very disappointing or perhaps, and in spite of everything, encouraging, depending upon the angle from which it is viewed. 72. Who could help yielding, at times, to a feeling of discouragement? The problems are really too numerous. They are overwhelming. They appear under conditions where the experience of the past can often be of no assistance. Moreover, the solution of any one of these problems appears each time to be closely linked to the solution of all the others. No sooner do we try to grasp one of these problems than we realize that it is only a link in a long chain, and that any attempt to raise it involves dragging in the whole chain. Are we not entitled to wonder, at times, whether we can be equal to the task which fate has thrust upon us? 73. But perhaps it will be possible, after all, with all due humility, for us to view this complex of difficulties in a different light and to find some ground for hope. It is true that the difficulties before us are interconnected and interdependent. But, at the same time, our analysis shows that any effort made in one direction is equally helpful in most of the others, 74. Let us suppose that we succeed in reducing the threat of war and strengthening all the chances of peace; by so doing we make the solution of all economic problems easier and more effective. Conversely, by building up our economic strength, we reduce the risks of aggression. If we manage to produce more, our peoples will enjoy greater well-being. And by reducing social tension we will promote economic progress. If we progress both in the economic and in the social fields, we shall be giving those who do not share our ideas, but who do not deliberately close their eyes and their minds, a proof of the soundness of our principles and of the quality of our methods. Finally, if we are strong in every respect, if we do our duty everywhere, we shall not be attacked. And, if we are not attacked, peace is assured; for we ourselves Will never attack. 75. If peace is finally vouchsafed us, then, despite errors, setbacks and misunderstandings of every kind, we shall none the less succeed in translating into reality the principles of our civilization and the discoveries of modern science; and, little by little, our great dream will in the end materialize — the world of tomorrow will have a chance to be freer, wider, more comprehensive and more just for the children of man.