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Rt-r HOLD FOR RELEASE HOLD FOR RELEASE HOLD FOR RELEASE November 9, 1949 CONFIDENTIAL: The following address by The Assistant to the President, John R. Steelman, before the National Electrical Contractors Association in convention in Houston, Texas, MUST BE HELD IN STRICT CONFIDENCE until 1:00 p.m., CST, Wednesday, November 9, 1949. CAUTION: This release applies to newspapers, radio announcers and news commentators. Extreme care must be exercised to avoid premature publica- tion or radio announcement. CHARLES G. ROSS Secretary to the President - I am glad to be in Houston today and to have this opportunity to talk to you about some economic aspects of our foreign policy and their importance to the business men of the United States. The chief aim of United States foreign policy is to create the conditions necessary to maintain peace throughout the world. The en- couragement of mutually beneficial trade, as a means to this end, is a cornerstone of United States foreign policy as it has been from the earliest days of the Republic. Experience throughout our history has made it ever more clear that peace and trade are two sides of the same coin. Today, more truly than ever before, the maintenance of a sound peace requires a solution of the economic problems confronting the world. For we know that in practically all cases economic problems are the real basis of political and social unrest. Today, moreover, economic problems confronting some other countries cast their shadows afar and cannot be ignored elsewhere. The United States cannot be economically isolated from any corner of the world any more than it can be blind to undemocratic political and social developments. While many economic problems throughout the world are the after- math of war, others in many under-developed areas are rooted in ignorance of industrial technology, in lack of opportunity to utilize a country's natural resources, or in poverty. The end of World War II found the world economy seriously out of balance. Our own country was virtually the only major nation in the world which came out of the war with its industrial machine still in top running order. In many others production facilities were seriously crippled. This meant that many nations in Europe and Asia were unable alone to make a satisfactory beginning toward reconstruction. In many (OVER)