increase exports of manufactured goods, and it can also 

 expect to buy more such goods from them. 



Against this background, mutuality of interest in 

 stimulating industrial activity in developing countries 

 should probably be seen as subject to limits similar to 

 those continually being worked out and applied in 

 international trade. Countries and industries offering 

 little present or near-term competitive challenges to 

 U.S. exports can rationally be treated generously in 

 the provision of technical assistance for industrial 

 development. But as a country or industrial sector 

 develops the capability to become fully competitive 

 with U.S. industry, internal pressures are likely to 

 mount and call for less liberal, more selective 

 policies with respect to some types of foreign 

 assistance. Under no conditions, however, should 

 concern for growing competition, however genuine, be 

 allowed to spawn self-imposed restrictions, such as 

 export controls, on the existing system of free 

 international exchange of technological information and 

 know-how, whether through licensing, joint ventures, 

 consulting, product sales, or other channels. As in 

 our relations with fully competitive member countries 

 of the Organization for Economic Cooperation and 

 Development (OECD) , the United States stands to gain in 

 the long run by maintaining and expanding (subject only 



Table 1. U.S. manufactured goods exports to and imports from 

 developing nations excluding food production, 1972 

 and 1976 ($ billions) 



Year 



Net U.S. 

 U.S. exports U.S. imports exports to 

 to developing frcm developing developing 

 nations nations nations 



Non-oi 1-exporting 

 developing nations 18.47 



14.82 



3.65 



Adapted from a table that appeared in "Industries in trouble," 

 The Economist , December 31, 1977, p. 76. 



U6 



