I would like to turn now to a vital subject in connection with economic development in the hemisphere, namely, the role of private investment. Now, c… - Richard Nixon

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I would like to turn now to a vital subject in connection with economic development in the hemisphere, namely, the role of private investment. Now, clearly, each government in the Americas must make its own decision about the place of private investment, domestic and foreign, in its development process. Each must decide for itself whether it wishes to accept or forgo the benefits that private investment can bring. For a developing country, constructive foreign private investment has the special advantage of being a prime vehicle for the transfer of technology. And certainly, from no other source is so much investment capital available, because capital, from government to government on that basis, is not expansible. In fact, it tends now to be more restricted, whereas, private capital can be greatly expanded. As we have seen, however, just as a capital-exporting nation cannot expect another country to accept investors against its will, so must a capital-importing country expect a serious impairment of its ability to attract investment funds when it acts against existing investments in a way which runs counter to commonly accepted norms of international law and behavior. Unfortunately, and perhaps unfairly, such acts by one nation in the Americas affect investor confidence in the entire region. We will not encourage U.S. private investment where it is not wanted or where local political conditions face it with unwarranted risks. But I must state my own strong belief, and it is this: I think that properly motivated private enterprise has a vital role to play in social as well as economic development in all of the American nations. We have seen it work in our own country. We have seen it work in other countries--whether they are developing or developed--other countries that lately have been recording the world's most spectacular rates of economic growth. Referring to a completely other area of the world, the exciting stories of the greatest growth rates are those that have turned toward more private investment, rather than less. Japan we all know about, but the story is repeated in Korea, in Taiwan, in Malaysia, in Singapore, and in Thailand. In line with this belief, we are examining ways to modify our direct investment controls in order to help meet the investment requirements of developing nations in the Americas and elsewhere. I have further directed that our aid programs place increasing emphasis on assistance to locally-owned private enterprise. I am also directing that we expand our technical assistance for establishing national and regional capital markets. As we all have seen, in this age of rapidly advancing science, the challenge of development is only partly economic. Science and technology increasingly hold the key to our national futures. If the promise of this final third of the 20th century is to be realized, the wonders of science must be turned to the service of man. In the Consensus of Vina del Mar, we were asked for an unprecedented effort to share our scientific and technical capabilities. To that request we shall respond in a true spirit of partnership.