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...first Cabinet. He prodded, exhorted, bullied, preached productivity and sleepless enterprise as the ticket to German recovery. He offered generous tax concessions for enterprisers who would build new plants, other tax inducements to those who could sell their products abroad. He used his power to reduce tariffs and import quotas to beat down the raw-material prices for Germany's expanding factories, boldly encouraged the importation of such "incentive" goods as Dutch cheeses, French lingerie, Spanish oranges and Swiss watches. He encouraged builders by lifting rent controls. Under his guiding and goading, production doubled in the first year after...
...Government's new $300 million overseas development fund to aid enterprises that do not qualify for loans from other agencies such as the Export-Import Bank...
...that ended in 1955 after increasing national income 17.5%, per capita income 10.5%, industrial output 38%. Then India decided to launch a second. $10 billion expansion plan. But the expected foreign capital was not available, and costs turned out to be grossly underestimated. With the government forced to cut imports to save foreign exchange, food prices have risen 16% in six months. India's neighbor. Pakistan, is not much better off. Once the breadbasket of undivided India, Pakistan had virtually no industry. In the struggle to industrialize, Pakistan raised industrial output 285% between 1950 and 1955. But so much...
...nationalizing properties of the Anglo-Iranian Oil Co., in expropriating the United Fruit Co. properties by Guatemala, and finally in expropriating the Suez Canal." Abs also cited instances of indirect interferences with the rights of private foreign capital. Among them: the withholding of essential raw materials, the refusal of import licenses and excessive taxation...
Proper Protection. How may foreign private investors be properly protected? Said Abs: "There is only one means apt to implement such protection, and that is an International Convention by which all contracting parties, both typical capital-export and capital-import countries, undertake to treat foreign capital and other foreign interests fairly and without discrimination and to abstain from direct or indirect illegal interferences with such investment...