He refer

juridical settlement of disputes. red with pride to the fact that Colombia had been elected to a seat on the Security Council of the United Nations and to the choice of Dr. Alberto Lleras, an ex-President of Colombia, as Director General of the Pan American Union. Dr. Ospina also stressed the honor to be paid the country by the meeting of the Ninth International Conference of American States at Bogotá in 1948.

The President mentioned the new Ministry of Justice, which started to function early this year under Law 68 of 1945.

IMMIGRATION. In dealing with the immigration policy, the President said that the voluntary immigrants who had been arriving had been screened, but without following a definite economic and social plan. Since the Government does not now have the means to promote large-scale immigration, the most practical solution seems to be to put Colombians who wish to bring in professional or technical workers in contact with governments able to meet their requests. Therefore Colombia intends to revive the Immigration Committee, with representatives from the National Manufacturers Association, the Coffee-growers' Federation, the National Farmers' Society, and the Bogotá Chamber of Commerce.

ECONOMIC MATTERS.-The President then examined in detail the adverse factors arising from the war that had affected the country's economic life. Although they had impeded both public and private activity, he declared that at the time of his message the economic situation was favorable. To sustain this assertion, he pointed out that agriculture, industrial production, and commercial activity were showing an increased liveliness, and that figures showed notable gains in both production and profits.

Referring to another aspect of the na

tional economy, the President said that many of those who initially criticized the economic policies of the Executive had later been convinced that the new policy of channelling credit toward the sources of industrial and agricultural production, while trying at the same time to anticipate the needs of the commercial importer, was not only opportune but permitted private capital to adjust itself without further dislocations to postwar economic conditions. The Government's policy in matters of credit had followed a definite program, he said, which, in its basic objectives, looked toward stimulating primary industrial and agricultural production, at the same time preventing speculation from working against the public interest.

In a table accompanying the message it was shown that the total value of banking assets in the last twelve months registered an increase of over 87 million pesos from June 1946, when they were 392,338,895 pesos, to the end of May 1947, when they had climbed to 479,529,736 pesos. (One peso equals $0.57.)

The increase in banking credit, which in the commercial field jumped 30 per cent, was especially notable in rural operations. In nine months it climbed from 50 to 75 million pesos, indicating an exceptional increase in benefits for the small and middle-class farmers. Capital in the amount of 50 million pesos had been earmarked for the Agrarian Credit Bank for immediate agricultural loans.

To supplement rural credit with modern farming methods, the Government engaged an American agricultural mission, which began its work in December 1946. It is expected to cooperate in providing high technical standards for agricultural experiment stations, extension service and development, use of water, grain storage, dairying, and animal husbandry. At the same time Colombia sent some of its own

agricultural technicians to study at the outstanding experimental centers in the United States, Costa Rica, Brazil, and Uruguay.

When foreign trade was resumed at the end of the war, merchants hastened to renew their stocks and manufacturers to import necessary supplies. In 1946 this meant a monthly drain of $37,000,000 against the country's dollar balance, which would have been exhausted fairly soon. The Government therefore imposed certain import controls to protect this balance and the reserves of the bank of issue.

The budget of expenditures for 1948 is estimated at 320,500,000 pesos. It is also expected that 50,000,000 pesos will be raised by loan for self-liquidating public works, including highways, river and harbor works, irrigation and drainage, with the necessary equipment.

Coffee-growing, said the President, continues to be the backbone of the country's economy and produced most of the country's foreign exchange. It is a very satisfactory industry from the viewpoint. of distribution of property and of workers, in his opinion.

The Grancolombiana Merchant Fleet (in which Venezuela and Ecuador are partners with Colombia) is in operation on a regular schedule between United States ports and those of the three countries named. Eight new boats were purchased. Another body established by a 1946 law (No. 31) was the National Petroleum Council. It has a wide jurisdiction over this important industry.

LABOR AND PUBLIC HEALTH.-The Colombian Social Security Institute, one of the greatest advances in the country's social legislation, was created by Law 90 of 1946. More than 500 labor conflicts were satisfactorily settled by Government intervention.

The President spoke warmly in favor of

promoting the cooperative movement among farmers and consumers.

The Ministry of Public Health, created by Law 27 of 1946, began to function January 1, 1947. It directed its activities towards social welfare and public health, and campaigned against the principal endemic diseases.

The high cost of living, which plagues. Colombia as well as almost all other countries, was ascribed by the President to low agricultural and industrial production and to the lack of city and country housing. Official policy is therefore directed towards increasing production and building low-cost houses. A 30,000,000peso housing plan for the next three years is projected.

EDUCATION. A reorganization of the Ministry with a view to giving technical officials the responsibility for essential parts of the educational system without the drag of routine detail was felt by the President to be of great importance. Another forward step was the appointment of an advisory Council of Education. Other machinery has been started for a wide. literacy campaign and for a complete reorganization of vocational education, with a special view to the training of the children of farmers and other workers.

In speaking of women's education, the President said that he believed the time had come to give Colombian women a more direct participation in the life of the nation by granting them the suffrage. He therefore proposed to introduce into Congress a bill amending the Constitution so as to give women the vote.

Further economic developments in Argentina'

Recent months have seen a number of new developments in Argentina's program 1 See Bulletin for March, May-June, August 1947.

of economic development, several of which are described below.

THE ARGENTINE STEEL PLAN.—On June 13, 1947, the Congress passed a law, approving the Argentine Steel Plan and the creation of the Argentine Steel Mixed Capital Company. The basic aims of the law are to produce steel in the country, to supply the local processing and finishing industries with semi-processed steel, to promote activity and technical efficiency in the production of iron ore and fuels. from Argentine and foreign sources, and in general, to develop and stabilize the Argentine steel industry.

The principal agent in the fulfillment of these aims will be the Argentine Steel Mixed Capital Company, which is to be formed with a capital of 100,000,000 pesos (equivalent to $24,700,000, computed at the rate of 4.05 pesos to the dollar). Of this amount, 90 percent will be subscribed by the State and the remaining 10 percent by private shareholders.

In the interests of furthering the Argentine Steel Plan, the Executive Power is authorized to expropriate any property which may be considered essential for this purpose, and to impose whatever tariffs it may deem necessary for the protection of the Argentine steel industry.

TERMINATION OF ALIEN CAPITAL BAN.Argentine's policy toward foreign capital was altered on July 8, 1947 when the Central Bank decided to remove all restrictions on the entry of foreign capital into the country.

Since May 1943, all foreign capital entering Argentina had had to secure a prior permit from the Central Bank, this control being primarily designed to halt the inflow of any capital that might intensify the prevailing inflationary trend. The Central Bank's recent resolution, however, orders the repeal of all measures

hindering the incorporation of foreign capital into the national economy and states that such capital will henceforth enjoy the same treatment and protection as that accorded Argentine capital.

The exit of foreign capital, on the other hand, is subject to certain conditions. At the time a person decides to invest capital in Argentina, the Central Bank will grant him a certificate of origin which will permit him to withdraw his money at the end of a stated term of investment and to remit abroad his annual dividends and interest up to a certain specified maximum. Earnings exceeding this maximum (which varies between 5 and 12 percent, depending upon the length of the investment period) are held to be Argentine capital and must remain within the country, under control of the Central Bank. Authorization to transfer Argentine capital and invest it abroad will be granted only when, in the opinion of the Central Bank, it is expedient in the interests of the country's economy to do so.

NATIONAL ECONOMIC COUNCIL ESTABLISHED. As a further step in carrying out his Five Year Plan, the President of Argentina, Juan D. Perón, issued on July 15, 1947 a decree creating the National Economic Council, whose functions will be to supervise and enforce the economic and financial laws of the land. Its membership is composed of the following cabinet officials: the Minister of the Treasury, the Minister of Agriculture, the Minister of Public Works, the Secretary of Industry and Commerce, the Secretary of Labor and Social Welfare, and the Technical Secretary of the Presidency-all of whom will be assisted, when necessary, by other cabinet officials. The Council also has a secretary general, appointed by the President of the republic.

Presiding over the organization as its chief executive is Sr. Miguel Miranda,