(1) The examination of the pertinent recommendations of the Inter-American Neutrality Committee and of the steps which have been taken as a result thereof; (2) The examination, in the light of present circumstances, of the standards of neutrality set forth in the third article of the "General Declaration of Neutrality of the American Republics", which was adopted at the Panamá Meeting on October 3, 1939;

(3) Exchange of information on activities which may develop within the territory and jurisdiction of any American republic that tend to endanger the common American democratic ideal;

(4) Consideration of the humanitarian activities which, in a coordinated manner, can be conducted by the governments of the American republics, the national Red Cross societies, and other entities created for the purpose, for the benefit of refugees, prisoners, and other victims of the war.

II. PROTECTION OF THE PEACE OF THE WESTERN HEMISPHERE

Consideration of measures to be taken with a view to the preservation of the sovereignty and peace of the nations of the Western Hemisphere:

(1) The study, in accordance with Resolution XVI approved by the Meeting of Panamá on October 3, 1939, of the problems which may confront the American republics in case the sovereignty now exercised by non-American states over geographic regions of the Americas is relinquished, lapses, or is materially impaired;

(2) The examination of the measures which have been or may be proposed in order to insure the attainment of the objectives set forth in the Joint Declaration of Continental Solidarity, the General Declaration of Neutrality, the Declaration of Panamá, and the consideration of the problems of continental security;

(3) The examination of the machinery of inter-American consultation created by the Buenos Aires and Lima Conferences, with a view to determining the steps which may be taken to increase its effectiveness.

III. ECONOMIC COOPERATION

(1) Consideration of the measures which have already been proposed by the Inter-American Financial and Economic Advisory Committee;

(2) Examination of additional measures the adoption of which may be desirable under present circumstances or which it may be desired to refer to the Inter-American Financial and Economic Advisory Committee for immediate analysis and recommendation.

At a preliminary session the following committees of the Meeting were created and their members appointed: Credentials, Coordination, Neutrality, Preservation of Peace in the Western Hemisphere, and Economic Cooperation. For the constitution of the latter three committees, the division in three parts of the agenda of the Meeting was taken into consideration.

2

The Ministers of Foreign Affairs considered the projects of the Inter-American Neutrality Committee and recommended that the respective governments give immediate consideration to them. The Inter-American Neutrality Committee was requested to draft two

2 For an account of the origin and functions of the Inter-American Neutrality Committee, see post, p. 64.

conventions, one dealing with the juridical effects of the Security Zone and the measures of international cooperation which the American nations should adopt in order to obtain respect for the Zone, and the other covering all principles and rules generally recognized in international law in matters of neutrality. A resolution adopted by the Meeting requested the American governments to adopt all necessary measures to prevent and suppress any activities directed from abroad against domestic institutions. It was agreed that, in the event the peace of any of the American republics is menaced by such subversive activities, the respective governments shall immediately consult if the state directly interested wishes to request it. The Meeting, noting the recent practice of certain governments to attach officials to diplomatic and consular agencies who perform functions other than diplomatic or consular, adopted a resolution setting forth the underlying principles relating to the functions of such missions. and urging the respective governments to take action to prevent political activities of foreign diplomatic and consular agents within the territory to which they are accredited that may endanger the people and democratic tradition of the Americas.

One of the most important matters considered at the Meeting related to the possible transfer or attempted transfer to another nonAmerican state of the sovereignty over possessions in the Western Hemisphere now controlled by European powers. The Ministers of Foreign Affairs, after considering the dangers presented by this situation, unanimously agreed upon a convention and the Act of Habana. The convention provides that, if a non-American state shall directly or indirectly attempt to replace another non-American state in the sovereignty or control which it exercises over territory located in the Americas, such territory shall automatically come. under the provisions of the convention and shall be submitted to a provisional administrative regime. Provision is made for the establishment of an Inter-American Commission for Territorial Administration, composed of a representative of each of the states ratifying the convention. The Commission is authorized to establish a provisional administration in the regions affected, to determine the number of states which shall exercise the administration, and to supervise the exercise thereof. Such territories or possessions as are the subject of dispute between the European powers and one or more of the American republics are excepted from the provisions of the convention. The convention shall enter into force when ratified by two thirds of the American republics.

The Act of Habana, which consists of a declaration and a resolution, is an emergency measure designed to give immediate effect to the main provisions of the convention regarding the setting up of

a collective trusteeship over colonial possessions of non-American powers in case of their attempted transfer before ratification of the convention. The declaration states that, when regions now in the possession of non-American nations are in danger of becoming the subject of barter of territory or change of sovereignty, the American nations may set up a regime of provisional administration under the conditions (a) that, as soon as the reasons requiring this measure shall cease to exist and in the event that it would not be prejudicial to the safety of the American republics, such territories shall be organized as autonomous states or restored to their previous status, and (b) that the regions shall be placed temporarily under the provisional administration of the American republics. These provisions are both general and permanent in character. The resolution provides for the establishment of an Emergency Committee composed of one representative from each of the American republics, to function only until the convention on the provisional administration of European colonies and possessions in the Americas shall come into effect. This Committee is to be constituted as soon as two thirds of the American republics shall have appointed their members. The resolution also provides that, should the need for emergency action be so urgent that action by the Committee cannot be awaited, any of the American republics, individually or jointly with others, may act in the manner which its own defense or that of the continent requires. If action is taken as an emergency measure, the matter is to be placed before the Emergency Committee immediately in order that it may adopt appropriate measures.

4

The major result of the labors of the Committee on Economic Cooperation was a resolution on economic and financial cooperation which constitutes a broad statement of policy with respect to interAmerican economic cooperation and takes cognizance of the dislocations and disruptions of international commerce arising out of the European war and their repercussions in the Americas. The InterAmerican Financial and Economic Advisory Committee was specifically instructed to proceed at once with the preparation of plans for the orderly marketing of surpluses; for the development, where feasible, of commodity production and marketing agreements and arrangements; for increasing consumption in the American republics which would aid in the disposal of surplus commodities; and for the promotion among the American nations of mutually beneficial trade. The Committee was also instructed to consider the possibility of a

'The requisite number of governments having appointed their members, the Emergency Committee has been established. See post, p. 71.

For an account of the origin and functions of the Inter-American Financial and Economic Advisory Committee, see post, p. 61.

broader system of inter-American cooperative organization in matters of trade, credit, money, foreign exchange, etc.

The convention and 26 resolutions, recommendations, and declarations were signed at the final plenary session held on July 30, 1940. These were along political, social, economic, and humanitarian lines. As a result of this action, the American republics present a solid front against aggression or infiltration from any outside source and have endeavored to provide a means of procedure to cope with any situation that might thus arise. The American governments have also agreed upon an economic program flexible enough to apply to any emergency and effective enough to make it possible for each of the American republics to meet more fully the difficulties resulting from wardisrupted trade and to safeguard itself from possible dangers of economic subordination from abroad. The final act contained a resolution providing that the Third Meeting should be held at Rio de Janeiro, at a date to be determined by agreement between the governments, should the necessity arise.

A full account of the conference is contained in Conference Series 48, copies of which may be obtained from the United States Government Printing Office, Washington, D.C.

Delegates:

INTER-AMERICAN MARITIME CONFERENCE

(Washington, D. C., November 25-December 2, 1940)

Henry F. Grady, Ph. D., Assistant Secretary of State;

Max O'Rell Truitt, Commissioner, United States Maritime Commission.

The Inter-American Maritime Conference met in Washington at the invitation of the Inter-American Financial and Economic Advisory Committee. The Advisory Committee was established for the purpose of providing a convenient means for the discussion of the serious crises in the economic field as a consequence of the outbreak of the European war. One of the questions which had received the attention of the Committee was the effect of present hostilities in Europe upon inter-American shipping. The Committee deemed it advisable to hold a special meeting of experts in the field of shipping in order to facilitate a comprehensive review of the subject, and in consequence issued invitations to the governments of the

For an account of the origin and functions of the Inter-American Financial and Economic Advisory Committee, see post, p. 61.

21 American republics to be represented at this meeting. It was the purpose of the Conference to deal with shipping problems of all the American republics.

Thirty-seven delegates were appointed by the twenty-one American states, and, in addition, representatives of steamship companies, steamship conferences, and government departments and agencies were in attendance in a consultative capacity.

The following topics comprised the agenda of the meeting:

(1) Transportation of commerce of the nations of the Western
Hemisphere needs and means of facilitating;

(2) Effect of present war on shipping of the Americas;
(3) Passenger and tourist travel between nations of the West-
ern Hemisphere-needs, present opportunities, and pos-
sible means of realizing;

(4) Ocean freight-rate problems-self-regulation, Government
regulation;

(5) Port dues, charges, taxes and other imposts on shipping—
desirability of uniformity, possibilities of reductions;
(6) The equitable distribution of cargoes in inter-American
trade-pooling of freights;

(7) National merchant marines-exchange of views as to needs.
and means used to develop;

(8) Study of methods of harmonizing Government shipping statistics and possibilities of reducing their cost;

(9) Consideration of suggestions for a continuing procedure for dealing with shipping problems of the Americas.

In view of the close interrelation of various topics on the agenda, it was decided that discussions should proceed in plenary sessions, leaving the question of appointing subcommittees to be determined as might be found expedient in the course of the discussions. Thirtyeight proposed resolutions or suggested projects were submitted for the consideration of the Conference.

It was felt that, in the interest of international relations, everything practicable should be done by the various governments to bring about a better and more wide-spread acquaintance of the peoples of the various nations of the Western Hemisphere with each other, especially by promoting tourist travel. A resolution passed at the meeting called for continued study of the subject of inter-American tourist travel by the Inter-American Financial and Economic Advisory Committee, cooperating with the several American republics, with a view to a broader dissemination of information concerning existing facilities for such travel and to the continued expansion of those facilities to the fullest possible extent.