As concerns the specific proposals of the Federal Republic of Germany, the United States appreciates the expressed willingness of the Federal Republic to take helpful measures. Certain among them may prove to be effective and in the common interest. We believe they should be explored on an individual basis, each on its own merits. If the Federal Republic of Germany should be prepared to carry out certain of these measures, the United States Government will be pleased to participate, as appropriate, in discussions concerning the details and techniques by which individual measures may be accomplished.

But such measures will not solve the fundamental problem of international payments imbalance on a stable, long-term basis.

Our common task is to design a reserves policy for the alliance which will recognize the responsibilities to the common interest of surplus and deficit nations alike.

In order to give effect to this principle, the outflow of long term capital from surplus nations, especially to the developing countries, should approach or exceed their export surplus to the world as a whole. This would not only ameliorate the disequilibrium in the international payments situation, but would also help the Free World meet the vital needs and expectations of the developing countries.

The United States welcomes the announced intention of the Federal Republic to inaugurate a new program of assistance to the developing countries to be administered on an untied basis.21 It would express the hope that this program be adequate in size and of a continuing

nature.

The Government of the United States believes that the question of equitable shares in the common effort to assist the underdeveloped nations of the Free World should be urgently examined within OEEC [Organization for European Economic Cooperation], in anticipation of the OECD [Organization for Economic Cooperation and Development] coming into effect; and that the question of equitable shares in the common defense be urgently examined within NATO. The Government of the United States is prepared to participate in such discussions. It is our hope that these discussions will take place in the spirit of the President's message to the North Atlantic Council of February 15, 1961.22

168. GERMAN-UNITED STATES AGREEMENT TO CONTINUE TALKS ON MEASURES TO BE TAKEN "IN CONCERT WITH THEIR COMMON ALLIES" TO CORRECT "THE PERSISTENT IMBALANCE IN THE INTERNATIONAL PAYMENTS SITUATION": Joint Communiqué Issued at Washington by the President of the United States (Kennedy) and the German Foreign Minister (Von Brentano), February 17, 1961 23

The President of the United States received the Foreign Minister of the Federal Republic of Germany, Dr. Heinrich von Brentano, on February 17, 1961, for a discussion of questions of mutual interest to both countries. Together with his previous conversations with Secretary of State Dean Rusk," the discussion provided an occasion for a first personal exchange of views between Dr. von Brentano and the new United States administration. The cordial and frank conversations confirmed the friendly and close relations between the Federal Republic and the United States.

There was particular agreement that the North Atlantic Alliance is a necessary basis for the defense of both countries and that all members of the Alliance have a mutual responsibility for its further strengthening. They confirmed the continuing importance of the goal of German reunification based upon the principle of selfdetermination and of the preservation of the freedom of the people of West Berlin.

Both Governments agreed that the persistent imbalance in the international payments situation called for concerted and vigorous action on the part of the free world. Unless and until this imbalance is substantially corrected it will continue to impede the free world's efforts to provide for the common defense and supply the resources needed by the less developed countries to meet their legitimate aspirations.

Both the United States and the Federal German Republic have recognized this principle in previous discussions. Proceeding from this basis both Governments will continue their talks on appropriate measures which can be taken to contribute to this end. In so doing they will act in concert with their common allies.

The President heard with satisfaction that the Federal Government will be prepared to provide the necessary means to carry on its program for the underdeveloped countries in future years.

"White House press release dated Feb. 17, 1961 (text as printed in the Department of State Bulletin, Mar. 13, 1961, pp. 369-370). Foreign Minister von Brentano visited Washington Feb. 16-17, 1961.

"Feb. 16, 1961.

169. FOURTH MEETING OF THE DEVELOPMENT ASSISTANCE GROUP, LONDON, MARCH 27-29, 1961: Communiqué Issued March 29, 1961 25

The Fourth Meeting of the Development Assistance Group was held in London on 27th-29th March, 1961. All members of the Group (Belgium, Canada, France, the Federal Republic of Germany, Italy, Japan, the Netherlands, Portugal, the United Kingdom, the United States and the Commission of the European Economic Community) were represented. Mr. Thorkil Kristensen, Secretary-General designate of the OECD [Organization for Economic Cooperation and Development], also participated in the meeting, and the International Bank and the Inter-American Development Bank took part in discussions of certain items of particular concern to them.

The Rt. Hon. Selwyn Lloyd, Q.C., M.P., Chancellor of the Exchequer, presided at the opening session and Sir Frank Lee, Joint Permanent Secretary to the Treasury, took the chair for the remaining discussions.

26

In accordance with the procedure adopted at previous meetings of the Group, the United Kingdom, as host government, gave a detailed exposition of the United Kingdom's aid programmes and policies, and described the substantial increase which had taken place and was still continuing in government expenditure on assistance to less developed countries. The United Kingdom expressed their determination to continue to make assistance available to the fullest extent which their circumstances would allow.

Other members of the Group made statements on recent developments in their aid programmes and policies, and several of them reported substantial increases in the level of their current or proposed aid programmes, and new institutional arrangements they had with the view to reinforcing their provision of long-term finance to less developed countries.

The Group recognized the importance of an adequate technical assistance effort to complement the provision of capital assistance, and agreed that members should keep one another informed of their efforts in this field in order to benefit from one another's experience.

The meeting discussed financial terms on which assistance should be provided and took stock of the many forms in which finance, public and private, is made available to developing countries. It was recognized that these vary considerably both in the contributions which they make to economic development and in the effort which they represent for the countries providing finance. At the same time, it was generally considered that all types of finance can serve a valuable function, provided that proper balance is kept between them. There was general recognition that an excessive proportion of short-term credits should be avoided in provision of finance to individual developing countries.

25

Department of State press release No. 172, Mar. 30, 1961 (text as printed in the Department of State Bulletin, Apr. 17, 1961, pp. 553–554).

26

See American Foreign Policy: Current Documents, 1960, pp. 329–333.

The meeting considered general questions of volume and nature of assistance to less developed countries and relative amounts which might be made available from various advanced countries.

It was agreed that a recommendation should be made to member governments and to the Commission of the European Economic Community that it should be made a common objective to secure an expansion of aggregate volume and an improvement in effectiveness of resources made available to less developed countries. It was agreed to make further recommendations on procedures to be adopted and principles to be studied towards attainment of this objective. The text of a resolution on the common aid effort embodying these recommendations is attached.27

In order to reinforce the functioning of the Group, the meeting agreed to invite the United States delegation to nominate the chairman of the group, and the French delegation to nominate the vicechairman, who would serve for the remainder of the life of the Group, and who would be available to serve as chairman and vice-chairman of the Development Assistance Committee when the OECD comes into being. These arrangements would replace the procedure previously adopted, under which a different chairman had been appointed for each of the Group's meetings, with responsibilities confined to the conduct of that meeting. The chairman to be appointed under these new arrangements would work closely with the Secretary-General of the OEEC and would be available to devote substantially full time to this work. The text of a resolution about these arrangements for strengthening the DAG is attached.27

At the invitation of the Government of Japan, it was agreed that the fifth meeting of the Group should be held in Tokyo on the 11th13th July, 1961.28 The Group recorded its expectation that its fifth meeting would be the last such gathering before the Group was replaced by the Development Assistance Committee of the OECD and that this Committee would normally hold its meetings in Paris at the headquarters of the new organization.

170. "THE BURGEONING DEMANDS OF THE LESS DEVELOPED COUNTRIES NO LESS THAN THE GROWTH OF SOVIET POWER DICTATE THAT A MORE TIGHTLY KNIT [ATLANTIC] COMMUNITY EVENTUALLY BE ACHIEVED": Address by the Vice President of the United States (Johnson) at 10th Anniversary Ceremonies, Supreme Headquarters, Allied Powers Europe, Paris, April 6, 1961 29

I am happy to bring to you from the people and the Government [of the United States] a message which is as absolutely determined

Not reprinted here; see pp. 554-555 of the Department of State Bulletin, Apr. 17, 1961.

25 See post, doc. 174.

"Department of State Bulletin, Apr. 24, 1961, pp. 581-583.

and meaningful as it is simple to state. That message is that the United States is resolved to do everything within its power-and I emphasize the word "everything"-to enhance the strength and unity of the North Atlantic Community.

This message reflects the basic purpose of our foreign policy: to maintain an environment in which free societies can survive and flourish. By free societies we mean those in which the consent of the governed plays an important role.

It is essential to this environment that it be spacious. It is essential, too, that within it there should exist the will and power to protect it against enemies and the opportunity for all to develop and to pursue happiness as they see it, within the limits of ability and willingness to work.

No single nation has enough influence and power to maintain this spacious environment of freedom. The coalition of the peoples and nations of Western Europe and North America is indispensable to this end. Without their power-the resultant of population, resources, technology, and will-it cannot be preserved.

To the United States it is of prime importance to maintain and strengthen the coalition, both its cohesion and power within the Atlantic area and its capacity for constructive action outside that

area.

If that cohesion and capacity are to be enhanced, vigorous measures will be required in the political, military, and economic fields.

In the political field it is to discover and act on the most basic of the various Alliance interests that are at stake and thus increase the Alliance's capacity to influence events in the world at large constructively.

Progress toward an integrated European community will help to enhance that capacity and thus to strengthen the Atlantic Community. A more cohesive and powerful Europe within a developing Atlantic Community is needed to undertake the large tasks which lie ahead. The essentially national and loosely coordinated efforts of the past will no longer suffice.

Our end goal-"that remote and ideal object" of which Lord Acton spoke, "which captivates the imagination by its splendor and the reason by its simplicity"-should be a true Atlantic Community in which common institutions will increasingly be developed to meet common problems.

The burgeoning demands of the less developed countries no less than the growth of Soviet power dictate that a more tightly knit community eventually be achieved. In progressing toward such a community we can regain the sense of forward movement and imaginative thinking which has characterized the Alliance in its most creative periods. In the long run such progress may well prove to be indispensable if our ultimate goal of a free and orderly world community is to be achieved.

In the military field, too, the United States will do its utmost to sustain and enhance the strength of the Alliance. I shall speak more