U.S., CHINA AND JAPAN CHARGED WITH ECONOMIC COERCION.

Nov 8, 1984

U.S., CHINA AND JAPAN CHARGED WITH ECONOMIC COERCION.

NEW YORK, NOVEMBER 6 (IFDA/CHAKRAVARTHI RAGHAVAN) – The United States, Japan and China have been accused of deliberately adopting "restrictive and coercive" measures aimed at "destabilising" the economies of at least five Asian and Latin American nations.-

The accusations have come from Afghanistan, Cuba, Nicaragua, North Korea and Vietnam.-

In their complaints to UN Secretary-General Javier Perez de Cuellar, the five Third World nations have said that the UN should continue to play a major role in studying and compiling information provided by governments on the adoption and effects of coercive measures by industrialised nations against developing countries.-

Last year the General Assembly adopted a resolution deploring the acts of certain developed countries who, taking advantage of their predominant position in the international economy, were exerting economic pressures in order to interfere with the sovereign rights of the developing countries.-

The resolution urged developed countries to refrain from threatening or applying trade restrictions, blockades, embargoes and other economic sanctions incompatibles with the provisions of the charter of the United Nations and in violation of undertakings contracted multilaterally and bilaterally.-

The assembly requested the Secretary-General to compile information provided by governments on the adoption and effects of such economic measures against Third World nations.-

In a 45-page report released recently, the Secretary-General has summarised the replies received from 24 member states.-

The report says that in some replies, it was indicated that coercive economic and political measures were usually applied whenever attempts were being made to de-stabilise the internal situation in a particular country.-

The objective of such policies was to ensure the inviolability of the political and economic positions of foreign capital, create obstacles to progressive socio-economic changes and facilitate the maintenance of peoples in process of liberation within the orbit of foreign economic dependency.-

In its letter to the Secretary-General, Afghanistan has charged that the embargo on Ariana Afghan Airlines commercial flights to a number of countries, which was imposed by the heads of state of seven Industrial countries in violation of existing agreements with Western Airlines, was nothing but an attempt to pressure Afghanistan both politically and economically.-

The Cuban government has accused the U.S. of adopting at least seven coercive economic measures:

First, the reduction and subsequent suspension of Cuba’s sugar quota.-

Second, the economic blockade banning trade in both directions between the U.S. and Cuba.-

Third, unilateral cancellation of the most-favoured-nation and preferential treatment which the two countries had been granting each other. Cuba says this is in violation of the General Agreement on Tariffs and Trade (GATT).-

Fourth, the limitations in force on trade with U.S. subsidiaries located in third countries.-

Fifth, the provisions of the trade act of 1974 which affects Cuba as regards the restoration of most-favoured-nation treatment and its inclusion in the U.S. Generalised System of Preferences.-

Sixth, the pressures that have been exerted on other countries not to trade with Cuba and,

Seventh, the ban on imports from third countries of goods containing products of Cuban origin.-

Cuba has also charged that there is a ban on using the U.S. dollar in financial transactions on any nature and on receiving financing from the U.S. or from bodies located in the U.S.-

The Cubans have also complained of the ban on conducting transactions with banks and financial institutions located in the U.S.-

The Reagan Administration, Cuba has said, has tightened some of the longstanding restrictions even further.-

Cuba has said that there is now a ban on tourist flights to Cuba and a ban on business and tourist travel as well. This includes the use of credit cards and cash payments for transport and personal expenses.-

Both restrictions are being enforced in accordance with a ruling by the U.S. Department of Treasury.-

In their letter to the Secretary-General, the North Koreans have charged that Japan levies specially high import duties on all goods originating from North Korea.-

They refer to levies up to five percent import duties on pig iron and steel plates, whereas it levies to duties on imports from other countries.-

The duties on silk yarn, cocoon and fish roe are said to be twice as high as those from other countries.-

Nicaragua has said that a few days after it was voted into office, the Reagan Administration in the U.S. decided to suspend the initial 15 million dollar disbursement of a loan of 75 million dollars which had been approved by the outgoing Carter Administration.-

This loan was intended to finance the task of reconstruction and economic revival of Nicaragua.-

The Nicaraguans have said that as a result of the Reagan Administration’s policy of economic and financial blockade, even the commitment of multilateral organisations in Nicaraguans external financing structure had dropped from 32.3 percent in 1980 to 15.6 percent last year.-

From February 1982 onwards, the Nicaraguans charge, U.S. pressure in the world bank led that body to take multilateral action against Nicaragua which resulted in the suspension of the loan programme and insistence on an economic stabilisation programme.-

In their letter to the Secretary-General the Vietnamese have said that China has not only cut off aid to Vietnam but also recalled all their economic experts and technical personnel working in Vietnam.-

The Vietnamese have said that China has also unilaterally discontinued more than 100 unfinished projects, some of which were of great importance to the reconstruction of Vietnam.-_