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Economic development of Southern Europe

Motion for a recommendation | Doc. 434 | 18 October 1955

Committee
Committee on Economic Affairs and Development
Signatories:
Mr Neil MCBRIDE, United Kingdom, SOC
Thesaurus

Draft RecommendationNote

The Assembly,

Noting the provisions of Article 1 of the Statute of the Council of Europe;

Noting the suggestion made to it in the Special Message (paragraph 28) of the Committee of Ministers on 20th May, 1954 (Document 238) and recalling Order 57, adopted by the Consultative Assembly on 29th May, 1954, directing the Committee on Economic Questions to study ways and means of furthering the economic development of Greece, Italy and Turkey;

Noting the Ten-year Italian Economic Development Plan prepared by the Italian Government ;

Noting the Resolutions of the Council of Ministers of the 0. E. E. C. of 14th January, 1955 and of 10th June, 1955 concerning the Italian Plan (see Appendix) ;

Noting the views of the Working Party set up by thé Committee on Economic Questions on the basis of Mr. MacBride's Report dated 15th October, 1955 (Document 428) ;

Taking into account that, in the case of Italy, the Italian Economic Development Programme has reached a stage at which its implementation can be undertaken;

Awaiting the completion of comprehensive plans for the economic development of Greece and Turkey, and their examination by the O. E. E. C,

Regards it as being essential to the welfare of Europe to ensure that every possible step be taken to secure the improvement of economic conditions in Southern Europe;

Endorses in full the decision of the Council of Ministers of the O. E. E. C. of 10th June, 1955 concerning the Italian Plan;

Recommends to the Committee of Ministers that it should use its best endeavours to focus again the' attention of the Governments of the Member States upon the recommendation embodied in the said Resolution of the Council of the O. E. E. C. and should request the Governments of the Member States to indicate as soon as possible the manner and the extent to which each of them can extend the aid requested in the said Resolution and otherwise assist Italy in the implementation of its Economic Development Programme;

Requests the Committee on Economic Questions and its Working Party to continue their study of economic developments in Italy and to give their full assistance to ensure the successful implementation of the Economic Development Programme;

Requests the Committee on Economic Questions and its Working Party to continue their study of economic developments in Greece and Turkey and to present their recommendations at the beginning of the Eighth Session of the Consultative Assembly.

Appendix APPENDIX

Organisation for European Economie Co-operation

Press Release Paris, 10th June, 1955 Press A (55) 26

RESOLUTION OF THE COUNCIL concerning co-operative support of the Italian Economic Development Programme - (Adopted by the Council at its 280th Meeting on 10th June, 1955)

The Council,

Having regard to Articles 2 and 3 of the Convention for European Economic Co-operation of 16th April, 1948;

Having regard to the Ten-Year Development Programme communicated to it by the Italian Government (hereinafter referred to as the " Development Programme ") ;

Having regard to the Resolution of the Council of 14th January, 1955 concerning that Development Programme;

Having regard to the Decision of the Council of 14th January, 1955, concerning the Extension and Stabilisation of Liberalisation of Trade ;

Having-regard to the First Report of the Council Working Party No. 9 [see Press A (55) 25] ;

Taking into account the proposals of the Managing Board of the European Payments Union concerning the Special Credit to be granted to Italy by that Union;

Convinced that the Development Programme is appropriate both as to its general conception and scope and is of far-reaching political, social and economic importance both for Italy herself and for all other member and associated countries of the Organisation; and

Recognising, that, while the success of the Development Programme will, in general terms, depend on the determination of the Government and people of Italy to carry it through, its feasibility is also, to some extent, dependent upon co-operation and support from the other countries of the Western world,

I. Approves the Report of the Working Party No. 9 of the Council referred to above;

II. Calls the attention of the Member and Associated Governments to the proposals of the Working Party No. 9 of the Council, as set out in para. 62 of its ReportNoteas to the forms of co-operation most likely to help the Italian Government in the implementation of the Development Programm e and urges them to bear those proposals in mind in the framing of their own policies, particularly— in the immediate future—in regard to the further liberalisation of trade and relaxation of import restrictions in conformity with the Decision o f the Council of 14th January, 1955, referred to above;

III. Welcomes the proposal by the Italian Government to keep the Organisation informed of the progress towards the implementation of the Development Programme;

IV. Instructs Working Party No. 9 of the Council:

1 to examine any further information that the Italian or other Member or Associated Governments may submit to the Organisation concerning the Development Programme and its implementation and to report again to the Council, from time to time, on the progress being made and the problems arising in the implementation of the Development Programme; and
2 to consider what instructions other than those indicated in Sections V and VI should be given to appropriate bodies of the Organisation for the study of ways and means by which co-operative support of the Development Programme can be made effective and to report thereon in due course to the Council;

V. Instructs the Productivity and Applied Research Committee to consider what action the European Productivity Agency might take for the provision of technical assistance and advice to Italy as may be needed and keep Working Party No. 9 of the Council informed of such action;

VI. Instructs the Steering Board for Trade and the Joint Trade and Intra-European Payments Committee to consider what measures in the field of trade and invisible transactions respectively would aid Italy to expand her foreign earnings while maintaining a high level of import liberalisation and keep Working Party No. 9 of the Council informed of the measures they propose should be taken in these fields.

* Extract from First Report of Working Party No. 9 to the Council of O. E. E. C. on the Italian Development Programme [Press/A (55) 25]

62. The six forms of co-operation which are likely to be most effective are the following:

1 The provision of technical help and advice to Italy as may be needed, giving the benefit of experience with problems of development, financial techniques and institutions, and planning methods.
2 Measures in the fields of trade and invisibles which will help Italy to expand her foreign earnings, while maintaining the present high level of import liberalisation.
3 Possible encouragement to the flow of private investment to Italy either in the form of loans and commercial credit or of direct investment.
4 Provision, particularly during the earlier years of the Plan, of appropriate financial aid and public long-term capital.
5 Facilities for short-term credits to meet temporary balance of payments difficulties that may arise from unforeseen internal or external fluctuations.
6 Continued efforts to facilitate emigration from Italy.