29

7. The discussion of possible individual and joint actions, both longrun and short-run, ranged over a wide field. In addition to the question of dollar earnings of the United Kingdom and the rest of the sterling area, mentioned above, the Ministers gave special attention to the following subjects : (i) Overseas investment ; (ii) Commodity arrangements and stockpiling ; (iii) Limitations on items which may be financed under present Economic Co-operation Act procedures ; (iv) Customs procedures ; (v) Tariff policy ; (vi) Liberalization of intra-Eutopean trade and payments ; (vii) Sterling balances ; (viii) Petroleum; (ix) Shipping, and (x) Provisions for continuing consultation. 8. A working group on overseas investment reviewed both recent experience and future prospects for the flow of productive investment, both private and public, from North America to overseas areas, especially under-developed countries. It was agreed that a high level of such investment could make an important contribution toward reducing the sterling-dollar disequilibrium and that every aspect of this problem should be explored on a continuing basis. In order to initiate this work the President's Committee for Financing Foreign Trade will be asked immediately to explore possible lines of action in co-operation with corresponding groups of British and Canadian financial and business representatives. While dealing with all aspects of private and public investment the Committee will be expected to address itself especially to the problem of incentives and of providing a suitable environment for a high level of private investment. 9. A working group on commodity arrangements and stockpiling gave special attention to rubber and tin. The Canadian representatives stated that the Canadian Government was prepared to take steps to increase reserve stocks of tin and rubber in Canada. The United States representatives reported that the United States Government was prepared to open to natural rubber a substantial additional area of competition, including a modification of the Government order relating to the consumption of synthetic rubber. The United States would review its stockpiling programme with particular reference to rubber and tin. 10. Special attention was given by another group to the practical difficulty being experienced by the United Kingdom in making fully effective use of its E.C.A. aid to cover its dollar deficit. This difficulty