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Publication 2668
INDEX
Volume XIV: Numbers 341-365, January 6-June 30, 1946
Academy of Political Science, New York, N.Y., address
by Mr. Clayton, 677.
Acheson, Dean :
Addresses, statements, etc. :
British loan, 51, 1S5, 317, 511, 759.
China, military aid to, 1115.
Greece, trade relations with, 175 n.
Harvard Clubs, Associated, Boston, Mass., 1(M5.
Japan, policy on, 756, 915.
Korea, administration of, 155.
St. Lawrence Seaway and Power Project, favoring
legislation, 334.
Trusteeship, principles involved in, 150.
World peace, U.S. share in, 893.
Atomic Energy Committee, chairman, 58, 177.
Correspondence :
Arab countries of Near East, answering opinion on
Anglo-American Committee of Inquiry report on
Palestine, 917.
British Ambassador, on U.S. attitude toward pro-
posed contract between Italian Government and
U.S. airline, 908.
Mr. McCormack, on resignation as Special Assistant
to Secretary, 778.
Organizations concerned with Palestine problem, on
report of Anglo-American Committee of Inquiry,
956.
Polish Ambassador (Lange), on Export-Import Bank
loan, 761.
President of TWA, on U.S. attitude toward proposed
contract with Italian Government, 908.
Secretary of War, commending Generals McNamey
and Clay, 681.
Senator Vandenberg, on U.S. policy on Polish dis-
placed-i)ersons camps in Germany, 1003.
UNRRA areas, request made to various governments
for press and radio facilities in, 131.
Participant in radio broadcasts, 191, 774.
Ackerman, Ralph H., designation in State Department,
826.
Addresses, statements, and broadcasts of the week, listed,
683, 728, 751, 819, 860, 920, 967, 1010, 1078.
Advisory Committee on Intelligence, Russell Plan for, 929.
A. F. of L., representation in United Nations affairs, 126,
199, 276.
Agar, Herbert, participant in radio broadcast, 11.
Agricultural Sciences, Inter-American Institute of, re-
search fellowship in agriculture to U.S. citizen, 179.
Agriculture :
International organizations concerned with, listed, 949.
Research fellowship offered by Inter- American Institute
of Agricultural Sciences, 179.
U.S. missions to China and the Philippines, 1054.
Agriculture, Department of:
Designation of Mr. Anderson as chairman of inter-agency
committee on PAO problems, 656.
U.S. Agricultural mission to visit Near East, 34&
I
Agriculture and Food Organization of United Nations.
See Food and Agriculture Organization.
Aid to China, remarks by Mr. Marshall, 484.
Ala, Hussein (Iranian Delegate to Security Council), let-
ters to Security Council regarding Soviet troops in
Iran, 659, 706, 854, 941.
Alaska Highway, agreement regarding U.S. equipment on,
683.
Albania :
Admission into United Nations, question of, 199, 754, 851.
Remittances to persons in, limitation, 1120.
Alcan Highway, agreement regarding U.S. equipment on,
683.
Algeria, closing of U.S. Consulate at Oran, 1130.
Alien enemies:
Disposition of those deported from other American re-
publics to U.S., 33.
Removal from U.S., proclamation by President Truman,
732.
Aliens, employment. State Department policy (D.R. 322.1),
1016.
Aliens in Japan, Far Eastern Commission policy regarding,
1042.
Allen, George V., appointment as U.S. Ambassador to Iran,
828.
Allen, Ward P., article on regional arrangements and their
relation to United Nations, 923.
Allied Commission on Reparations, resignation of Mr.
Lubin as Associate U.S. Representative, 224.
Allied Control Council for Germany. See Control Council.
Allied Council in Austria, jurisdiction, 81.
Allied Mission to Observe the Greek Elections. See Elec-
tion.?, Greek.
Allied-neutral negotiations on German external assets,
U.S. representative:
Appointment and resignation of Mr. Paul, 374, 1077.
Appointment of Mr. Rubin, 955.
Allied-Swedish negotiations on German external assets,
meeting in Washington :
Dates, 990, 1042, 1074, 1111.
Delegations, 992.
Allied-Swiss negotiations regarding German holdings:
Agreement between Allies and Swiss Government :
Article on, 1101.
Texts of letters, 1121.
Dates of meeting in Washington, 525, 565, 618, 655, 711,
755, 813, 856, 884, 946, 955, 990.
America — as others see us, radio broadcast, 11.
American Academy of Political and Social Science, Phila-
delphia, Pa., address by Mr. Wilcox, 630.
American A.ssociation for the United Nations, New York,
N.Y., address by Mr. Winant, 975.
American Federation of Labor, representation in United
Nations affairs, 126, 199, 276.
American Platform Guild, Washington, D.C. :
Address by Mr. Benton, 7.
International affairs, conference of lecturers on, 6, 11.
1137
1138
DEPARTMENT OF STATE BULLETIN i
American republics (see also Commissions; Conferences;
Inter-American; Pan American; Treaties; and the
individual countries) :
Alien enemies from, disposition by U.S., 732.
Cereal requirements, table showing, 898.
Child welfare in, promotion, article by Mrs. Enochs, 428.
Cultural and scientific cooperation with U.S., report rec-
ommending continuance, 1092.
Cultural leaders, visit to U.S., from : Argentina, 349, 868 ;
Bolivia, 867 ; Brazil, 40 ; Costa Rica, 868, 962 ; Cuba,
263 ; El Salvador, 40 ; Guatemala, 1091 ; Haiti, 1053 ;
Mexico, 687; Paraguay, 962; Peru, 777; Uruguay,
1130 ; Venezuela, 870.
Enemy aliens from other American republics, disposi-
tion of, U.S. memorandum, 33.
Exchange-students program, address by Mr. Braden, 396.
Fascism in, discussion by Mr. Braden, 101.
German propaganda in, 280.
Good-neighbor policy, comments by Mr. Braden, 295, 296.
Graduate students, Uruguayan statute providing for ac-
ceptance at University of Montevideo, 960.
Inter-American cooperation, announcement of addresses
on, by Mr. Braden and Mr. McGurls, 683.
Loans authorized by Export-Import Bank, table, 384.
Military cooperation, inter-American, bill, letter of
transmittal from President Truman to Congress and
statement by Secretary Byrnes before House Foreign
Affairs Committee, 859, 1001.
Mutual assistance, plans for, 287, 667, 732.
Regional arrangements in, discussed in article by Mr.
Allen, 924.
Social-service programs, development and administration
of, 21.
Travel grants for study in, resumed, 179.
U.S. memorandum regarding Argentine situation, 285,
666.
Visit of agricultural expert from U.S. (Rutford), 960.
Visit of Herbert Hoover to, 958.
American Society of International Law, letter from Sec-
retary Byrnes to president (Coudert), 758.
Anglo-American Caribbean Commission (see also Carib-
bean Commission) :
Activities, 130.
Name, change proposed, 36, 292.
Publication, 264.
Anglo-American civil aviation conference. See Civil
aviation conference.
Anglo-American Committee of Inquiry:
Executive order providing for furnishing of informa-
tion to (Ex. Or. 9682), 127.
Hearings in Washington, 74.
Itinerary, 786.
Meetings, dates and places, 169, 245, 290, 330, 375, 431,
476, 525, 565, 618, 655, 711, 755.
Membership of, 35.
Relation to Cabinet Committee on Palestine and Related
Problems, 1089.
Report on Palestine and immigration and settlement
problems of Jews and other displaced persons:
Excerpts, 784.
Letters and statement regarding, 783.
U.S. views on :
Letter to organizations in U.S., 956.
Memorandum to Near East governments, 956.
Reply to view of Arab countries, 917.
Anglo-American Rice Commission, establishment, tri-
partite agreement, signature, 863.
Anglo-Siamese peace treaty, text, 963.
Anslinger, Harry J., appointment as U.S. representative
to United Nations commission, 1052.
Antilla, Cuba, closing of U.S. Consulate at, 263.
AP. See Associated Press.
Arab leaders in Palestine, consultation with U.S., and
U.K., proposed, 917, 956.
Archaeological excavations in U.K., invitation to U.S.
students to participate in, 961.
Archives, German, Italian-Fascist, and Japanese, requests
for information from (D.R. 230.1), 1016.
Argentina (see also American republics) :
Cultural leaders, visit to U.S., 349, 868.
Elections :
U.S. attitude on charges against U.S. Embassy by
Per6n, 222.
U.S. memorandimi regarding, 667.
General von der Becke, visit to U.S., 1129.
Postponement of conference at Rio de Janeiro owing to
attitude of, 427.
U.S. Ambassador (Messersmith), appointment, 687.
U.S. memoranda regarding situation in, 285, 666.
Arica, Chile, closing of U.S. Vice Consulate, 499.
Armed forces :
Demobilization of, discussed in President Truman's mes-
sage to Congress, 141, 142.
Foreign Service examinatiens for, 306.
Armed forces, German, quadripartite draft treaty to
disarm and disband, 815.
Armed forces, Soviet, in Iran. See Iranian case under
Security Council.
Arms and ammunition :
Germany, prohibition of production in, 636, 815.
Mexico, investigation of charges against American firms
for alleged shipments, 39.
Spain, denial of alleged sale to by U.S. authorities, 218.
Arms and Armaments, Policy Committee on, functions,
composition, etc. (D.R. 183.8), 1096.
Armstrong, Elizabeth H., report on West Indian confer-
ence, 840.
Army-Navy-State College, plans for, 259.
Asia, propaganda, German, in East Asia, 313.
Assets. See Property.
Assets, German, in neutral countries. See Germany.
Associated Press, protest of State Department at discon-
tinuance of short-wave broadcasting service to the
Government :
Letter to president of AP Board of Directors, 94.
Statements and comments by Mr. Benton, 92, 217, 574,
726.
Asylum to political refugees, discussion in General As-
sembly, 199.
Atcheson, George, Jr., remarks on SCAP policy on internal
political activities in Japan, 915.
Atomic Development Authority, International :
Address by Mr. Baruch, 1057.
Creation of, proposal, 558.
Discussed in radio broadcast, 775.
Atomic energy :
Control of:
Radio broadcast, 774.
Report of Atomic Energy Committee, 553, 668.
Statements by Secretary Byrnes, 58, 146.
Denaturing of atomic explosives, report by group of
scientists, 668.
Human rights, relation to, 333, 334.
Nazi plants in Spain, alleged, statement regarding, 681.
Atomic Energy Commission of United Nations:
Address by Mr. Baruch at ojjening session in New York,
N.Y., 1057.
Appointment of U.S. representative on (Baruch), 676.
Dates of meeting, 946, 990, 1042, 1074, 1111.
Delegates and advisers, final list, 1076.
Establishment by General Assembly, 19, 58, 89, 198.
Members invited to atomic-bomb tests, 209, 864.
Atomic Energy Committee (of Secretary of State) :
Appointment of committee, 58.
Board of Consultants, 177, 553, 774.
INDEX, JANUARY TO JUNE 1946
1139
Atomic Energy Committee — Continued
Report of Board of Consultants on international con-
trol of atomic energy :
Clarification, 668.
Foreword by Secretary Byrnes, 553.
Letter of transmittal to Secretary Byrnes, 553.
Radio broadcast, 774.
Text, excerpts from, 555.
Atomic-bomb tests, at Bikini :
Civilian committee to evaluate, appointment, 560.
Observers, invitation to —
Foreign representatives, 209.
Trygve Lie, 1130.
United Nations Atomic Energy Commission, members,
864.
Postponement, 560.
Statement by President Truman, 667.
Attlee, C. R. (Prime Minister of U.K.), joint statement
with President Truman and Prime Minister King on
continuing Combined Food Board operations, 861.
Australia :
Joint Chiefs of Staff in, organization, 221.
Prime Minister Chifley, visit in U.S., 825.
Treaties, agreements, etc. :
Bermuda telecommunications agreement (1945), ac-
ceptance, 714.
Lend-lease, reciprocal aid, and surplus property, set-
tlement of, with U.S., 1118.
Occupation of Japan to be participated in by BCOF,
agreement with U.S., summary, 220.
Peace, with Siam, exchange of notes, 966.
Sanitary convention (1926), as amended (1944),
protocol prolonging, entry into force and text,
869.
Sanitary convention for aerial navigation (1933), as
amended (1944), protocol prolonging, entry into
force, 869.
War criminals of European Axis, prosecution and
punishment of (1945), accession, 261.
Austria :
Allied Council in, jurisdiction of, 81.
Allied treaty with, recommendation to Council of For-
eign Ministers regarding, statement by Secretary
Byrnes, 891.
Credit arrangement with U.S., 818.
Displaced-persons camps in, question of closing, 498.
Exit permits for refugees to return to their country,
U.S. ban lifted, 73.
Lignite reserves and production, table, 651.
Mail service restored, 40.
Recognition by U.S. Government, 81.
Relations with Germany (1940), 462.
Relations with U.S. and status as independent state dis-
cussed, 339.
Representative in U. S. (Kleinwaechter), 177.
Treaty with U.S., U.K., France, and U.S.S.R., proposal
by U.S. to determine independent status of discussed,
339.
U.S. representative (Erhardt), appointment, 177.
Views of Council of Foreign Ministers regarding, dis-
cussed in address by Secretary Byrnes, 954.
Zones of occupation, article by Mr. Hoffman, (549.
Automobile permits for U.S. citizens in U.S. zone of
Germany, 447.
Aviation (see also CITE JA ; PICAO; Treaties) :
Air law, international, private, article by Mr. Latchford,
835.
Air routes of U.S. and U.K. carriers, 589.
Air-navigation facilities abroad, functions relating to.
transferred from War and Navy Departments to
Department of Commerce (Ex. Or. 9709), 684.
Conferences :
Air-navigation conference, regional, 219, 290, 330, 375.
Anglo-American conference at Bermuda. See Civil
aviation conference.
Aviation — Continued
Radio distance indicators, agreement between U.S. and
U.K., 397.
U.S. air bases on Kurile Islands, question of, 190.
U.S. policy on trade privileges in ex-enemy states, letter
of Mr. Acheson to British Ambassador and to presi-
dent of TWA, 908.
Aviation Division, Office of Transport and Communica-
tions :
Composition, 1094.
Organization and functions (D.R. 131.11), 1131.
Axis (see also Germany; Japan; War criminals, Euro-
pean) :
Conferences of leaders (1941), German documents on,
1103.
Relations with Spain (1940-43), texts of documents, 413.
Ayala, Juan B., credentials as Paraguayan Ambassador to
U.S., 730.
Azerbaijan, government of, discussed in Soviet-Iranian
correspondence with Security Council, 659.
Azores :
Airports in, transit use by U.S., agreement with Portugal
(1944), 1051, 1080.
Closing of U.S. Consulate at Horta, Fayal, 1130.
Bahamas :
Liquidation of surplus property in, 350.
North American regional broadcasting, interim agree-
ment, signature by U.K. on behalf of, 376.
Baker, George P., resignation from State Department,
1054.
Bangkok, Siam, opening of U. S. Legation, 83.
Bank, International, for Reconstruction and Develop-
ment. See International Bank.
Baruch, Bernard M. r
Address before United Nations Atomic Energy Com-
mission, 1057.
Appointment as U.S. representative on United Nations
Atomic Energy Commission, 676.
Bay, Charles Ulrick, appointment as U.S. Ambassador to
Norway, 1054.
BCOF (British Commonwealth Occupation Force) :
Occupation of Japan, agreement between U.S. and
Australia :
Statement by Gen. Douglas MacArthur, 221.
Summary of agreement, 220.
Beale, T. M., Jr., designation in State Department, 351.
Becke, General von der (Argentina), visit to U.S., 1129.
Beddie, J. S., selection and translation of official German
documents, 459, 699, 984.
Beira, Portuguese East Africa, closing of U.S. Consulate,
132.
Belgium :
Mr. Spaak elected president of first General Assembly
of United Nations, 17.
Property of U.S. nationals in, filing of declarations of
damage to, 634.
Treaties, agreements, etc. :
Air transport, interim arrangement with U.S., 263.
Air-transport services, bilateral, with U.S., signature,
633, 683.
Bretton Woods agreements (1945), signature and
acceptance, 36.
Reparation from Germany, draft, 114 n.
Sanitary convention concerning maritime travel
(1926), as amended (1944), accession, 451.
Sanitary convention concerning maritime travel
(1926), as amended (1944), protocol prolonging,
signature, 869.
Sanitary convention for aerial navigation (1933), as
amended (1944), accession, 451.
Sanitary convention for aerial navigation (1933), as
amended (1944), protocol prolonging, signature,
869.
1140
DEPARTMENT OF STATE BULLETIN
Belgium — Continued
Treaties, agreements, etc. — Continued
War criminals of European Axis, prosecution and
puuisliment of (1945), accession, 2G1.
U.S. Ambassador (Kirk), appointment, 224.
Bellegarde, Dantes, credentials as Haitian Ambassador
to U.S., 1050.
Benton, William :
Addresses, statements, etc. :
American Platform Guild, 7.
Death of Grayson N. Kefauver, 39.
Information service, international :
American press associations, 574.
Associated Press and United Press, discontlQuance
of service to Government, 92, 94, 217.
. U.S. news abroad, 722.
U.S. short-wave broadcasting, status, 900.
Understanding among peoples, 408.
UNESCO, description, 625.
Correspondence :
President of Associated Press (McLean), 94.
Secretary Byrnes, transmitting report of U.S. educa-
tion mission to Japan, 767.
Designation in State Department, 351.
Participant in radio broadcasts, 11, 156.
Berlin, Germany :
Joint administration by Allies, 599.
Opening of U.S. Consulate, 399.
Opening of U.S. Consulate General, 451 ; corrected, 872.
Bermuda, liquidation of surplus property in, 350.
Bermuda civil-aviation conference, 75, 169, 219, 290, 302,
584.
Bermuda Telecommunications Conference :
Agreement, list of signatories, 714.
Article by Miss Kelly, 59.
Delegations, listed, 75.
Bevin, Ernest, attitude on Soviet demands regarding Brit-
ish troops in Indonesia, 275.
Bidault, Georges, message to Secretary Byrnes regarding
establishment of central agencies for control of Ger-
many, 441.
Biesanz, John B., visiting professor to Panama, 962.
Bikini. See Atomic-bomb tests.
Blacklist. See Blocked Nationals.
Blair House, article by Mi.ss Crane, 322.
Blake, Thomas D., resignation from State Department, 736.
Blocked Nationals, Proclaimed List:
Enforcement program regarding, statement by Depart-
ment of State, .579,
Revision X, Cumulative Supplements 1, 2, 3: 259, 491.
1052.
U.S. foreign trade and ex-Proclaimed List nationals,
article by Mr. Monsma, 875.
Bloom, Julius, participant in radio broadcast. 11.
Bloom, Sol, participant iu radio broadcast, 386.
Blue Bonk, U.S. memorandum on Argentine situation, 666.
Blum, Leon, and French Mission, reception for, in New
York, N. Y., address by Mr. Hilldring, 674.
Board of Consultants of Atomic Energy Committee 177
553, 555, 668, 774.
Bolivia (see also American republics) :
Cultural leader, visit to U.S., 867.
Treaties, agreements, etc. :
Bretton Woods agreements (1945), signature and ac-
ceptance, 36.
Military-aviation mission, with U.S. (1941), renewal,
83.
Peace, friendship, commerce and navigation (1858),
with U.S., exchange of notes regarding most-
favored-nation provisions in relation to Philip-
pines, 1049.
U.S. Ambassador (Flack), appointment, 828.
Boskey, Bennett, designation in State Department, 826.
Boundaries, international :
Italy-Yugoslavia :
Commission appointed to make recommendations on,
391.
Council of Foreign Ministers, views, 950.
Soviet-Polish :
Map showing, 342.
Treaty regarding, text, 341.
Braden, Spruille :
Addresses, statements, etc. :
Cultural-relations program, 396.
Freedom of information, 392.
National Socialist ideology, remnants of, 101.
Peace, 535.
Radio broadcast, 26.
State Department responsibility for Institute of
Inter-American Affairs and Inter-American Edu-
cational Foundation, 1012.
Committee to draft treaty proposals for Rio de Janeiro
conference, motion proposed by, 732.
Bradford, Saxton, article on German propaganda abroad,
278.
Bradley, Carolyn, visiting professor to Chile, 40.
Brazil (.see also American republics) :
Closing of U.S. Vice Consulate at Mandos, 1054.
Cultural leader, visit to U.S., 40.
Peace conference at Rio de Janeiro, postponement, 427,
667.
Treaties, agreements, etc. :
Bretton Woods agreements (1945), signature and
acceptance, 36, 528.
Customs, modus vivendi with Venezuela (1940), ter-
mination, 581.
Sanitary convention (1926), as amended (1944),
ratification, 299.
U.S. Ambassador (Pawley), appointment, 828.
Visiting professor from U.S., 351.
Bread (see also Wheat), OPA regulation regarding, dis-
cussed iu article by Mr. Stillwell, 834.
Bremen, Germany, opening of U.S. Consulate, 399, 687, 872.
Bretton Woods agreements (.see also International Bank;
International Monetary Fund), signatories and in-
struments of acceptance, listed, 36, 528.
Bretton Woods Agreements Act, 380, 384.
Briggs, Ellis O., participant in radio broadcast, 26.
British Commonwealth Occupation Force. See BCOF.
British loan. See Financial agreement, U.S.-U.K.
Broadcasting Committee, International Short-Wave, com-
position, 862.
Broadcasts, addresses, and statements of the week, listed,
083, 728, 751, 819, 860, 920, 967, 1010, 1078.
Broadcasts, radio. See Radio broadcasts.
Brophy, Gerald B., resignation from PICAO, acceptance,
857.
Brown, Winthrop G., address on expanding international
trade, 539.
Brunauer, Esther C, appointment as U.S. Representative
and member of Executive Committee of UNESCO,
337.
Budget and Finance, Office of, UNRRA Division, functions
(D.R. 124.4), 1015.
Bulgaria :
Opposition parties in Government :
Aide-memoire of U.S. regarding, 447.
Note from Secretary Byrnes to Soviet Embassy at
Washington, 485.
Property rights of U.S. citizens, restoration, 446.
Bunce, Arthur C, appointment as adviser to General
Hodge, U.S.A., in Korea, 224.
Bunn, Charles, article on U.S. trade proposals, 647.
Burma, attitude on opium control, 239, 243.
Bush, Vannevar, participant in radio broadcast, 774.
INDEX, JANUARY TO JUNE 1946
1141
Byrnes, James F. :
Addresses, statements, etc. :
American Platform Guild, greetings to, 6.
Appointment of Mr. Fahy as Legal Adviser, 735.
Arrival of Mr. Lie in U.S., 529.
Atomic energy, control of, 58, 146.
Atomic-bomb test, 209.
Cabinet Committee on Palestine and Related Prob-
lems, appointment of Mr. Grady as alternate on,
1089.
Council of Foreign Ministers, recommendations to,
891.
Death of—
Chalmers, Philip O., 299.
Leach, Irene B., 218.
Displaced-persons camps in Germany and Austria,
closing, 498.
Economic and financial agreements, U.S.-U.K., 267.
Far Eastern Commission, first Washington meeting,
378.
Financial agreement between U.K. and Greece, 155.
Funds for State Department intelligence program, lacli
of appropriation for, 687.
General Assembly of the United Nations, 87.
General MacArthur's jurisdiction in Pacific, 449.
Germany, civil administration, 197.
Greek elections, 529.
Italian elections, 299.
Message at opening meeting of Security Council in
New York, 567.
Military cooperation bill, inter- American (H.R. 6326),
statement before House Foreign Affairs Commit-
tee, 1001.
Paris conference of Foreign Ministers (Apr. 25-May
16), report, 950.
Poland, alleged political murders in, 209.
Poland, elections, 209.
Security Council, discussion of Soviet-Iranian matter,
570, 571, 620, 621, 828.
Trade, principles of, promotion for peace and pros-
perity, 892.
United Nations, our hope in, 355.
U.S. military strength, relation to United Nations and
world peace, 481.
Yalta agreement on the Kurile Islands and Sakhalin,
189, 282.
Atomic energy, control :
Appointment of committee to study, 58.
Foreword to report on, 553.
Correspondence :
American Society of International Law (Coudert,
president), on U. S. policy in maintaining and
developing international law, 758.
Chinese and Soviet Governments, on industrial enter-
prises in Manchuria, 448.
Foreign Ministers, Council of, suggestion for meeting
of, 624.
French Foreign Minister (Bidault), concerning estab-
lishment of central agencies for control of Ger-
many, 440.
Frencli Government, respecting conference on peace
treaties, 112.
General MacArthur, tribute, 449.
Greek Foreign Minister, regarding good-will visit of
U.S.S. Missouri to Greece. 731.
Mr. Swing, regarding favorable position of State De-
partment toward compulsory jurisdiction of Inter-
national Court of .Justice, 633.
Mr. Walton, on resignation as Minister to Liberia, 450.
President Truman, regarding —
International Information Service, 57.
Protocols prolonging amendments (1944) of sani-
tary convention (1926) and sanitary convention
for aerial navigation (1933), 1085.
Byrnes, James F. — Continued
Correspondence — Continued
President Truman, regarding — Continued
Report on convention with Canada relating to fish-
eries of the Great Lakes, 823.
Report on General Assembly of United Nations
(1st part of 1st session), 530.
Report on supplementary protocol to income-tax con-
vention with U.K. (1945) , 1087.
Senator Myers, on U.S. position regarding recognition
of Trans-Jordan, 765.
U.S.S.R., on U.S. aide-memoire to Bulgaria on opposi-
tion parties in, 485.
Yugoslavia, on establishment of diplomatic relations
with U.S. and on appointment of Ambassador to
U.S. (Kosanovic), 728.
Departure for meeting of Council of Foreign Ministers
at Paris, 1074.
Directive on U.S. policy in occupied areas, 734.
General Assembly, first part, first session, participation,
62.
Cabinet Committee on Palestine and Related Problems,
Executive Order 9735 establishing, and statements
by President Truman and Secretary Byrnes. 1089.
Camps in U.S. zone in Germany, closing postponed, 764.
Canada:
Customs procedure, discussion of with U.S., 261.
Silver-fox furs, reconsideration of quotas on, 176.
Treaties, agreements, etc. :
Bretton Woods agreements (1945), signature and
acceptance, 36.
Civil-aviation convention (1944), ratification, 377.
Fisheries of the Great Lakes, convention with U.S.
relating to, 823.
North American regional broadcasting, interim agree-
ment, signature, 376.
St. Lawrence Seaway and Power Project, with U.S.,
address by Mr. Acheson on, 334.
Sanitarv convention concerning maritime travel
(1926), as amended (1944), ratification, 40.
Sanitary convention concerning maritime travel
(1926), as amended (1944), protocol prolonging,
signature, 869.
Sanitary convention for aerial navigation (1033), as
amended (1944), ratification, 40.
Sanitary convention for aerial navigation (1933), as
amended (1944), protocol prolonging, signature,
869.
U.S. defense installations In, agreement to purchase,
conclusion, 683.
U.S. sui-plus property, disposal, ,350.
Canby, Henry Seidel, participant in radio broadcast, 11.
Canol project, disposal, 350.
Caribbean area, efforts by U.S. and U.K. to expand food
and livestock production, 130.
Caribbean Commission (srr. also Anslo-Amorican Carib-
bean Commission ; West Indian Conference) :
France and Netherlands, membership, 36, 202, 331.
Name changed from Anglo-American Caribbean Commis-
sion, 331.
Cartels :
Effects of, article by Mr. Terrill, 4.55.
Germany, question of revival, discussed in radio broad-
cast, 911.
Casablanca, Morocco, U.S. Consular office elevated to rank
of Consulate General, 872.
Catudal, Honor# Marcel, designation In State Department,
3,51.
Celestials, The, New York, N.Y., address by Mr. Braden,
294.
Censor.ship :
Japanese publications, SCAP report, 751.
Moscow, procedure for U.S. newspapermen, 731.
1142
DEPARTMENT OF STATE BULLETIN
Censorship — Continued
Tehran, for foreign correspondents, 731.
U. S. statement, 772.
Censorship files, presidential authority for review of, 264.
Central America. See American republics, and the indi-
vidual countries.
Central Services, Division of, functions (D.R. 121.4), 1094.
Cereals. See Food ; Wheat.
Chalmers, Philip O., death, 299.
Chapin, Selden, address on the Foreign Service, 163.
Charts. See Maps and charts.
Chicago, 111., Army Day address by President Truman, 622.
Chifley, Joseph Benedict (Australian Prime Minister),
visit to U.S., 825.
Child welfare in American republics, promotion, article
by Mrs. Enochs, 428.
Childs, J. Rives, appointment as U.S. Minister to Saudi
Arabia, 828.
Chile (see also American republics) :
Pan American Congress of Social Service (1st), 21.
Suffrage for women, question of, 249.
Treaties, agreements, etc. :
Bretton Woods agreements (1945), signature and
acceptance, 36.
Whaling, regulation of, agreement (1937) and proto-
col (1938), accession, 451.
U.S. Vice Consulate at Arica, closing, 499.
Visiting professors from U.S., 40, 962.
China (see also Far East) :
Appointment of Dr. Kuznets as Economic Adviser to,
961.
Cultural leaders, visit to U.S., 263, 961, 1092.
Cultural-relations program, U.S. technical experts, re-
turn to U.S., 351.
Delegation to Security Council, joint statement with
U.S., U.K., and U.S.S.R. on voting procedure, 851.
Executive Headquarters, U.S.-Chinese, description, 484.
Foreign policy of U.S. concerning, statement by Presi-
dent Truman, 139.
Manchurian industrial enterprises, exchange of mem-
oranda witli U.S. regarding control, 448.
Military aid from U.S., remarks by Mr. Acheson, 1115.
Repatriation of Formosan-Chinese in Japan, Far East-
ern Commission policy regarding, 1044.
Soviet troops, withdrawal, 201.
Travel grants for students, extension of application
date, 1091.
Treaties, agreements, etc. :
Bretton Woods agreements (1945), signature and ac-
ceptance, 36.
Chinese Eastern Railroad and South Manchurian
Railroad, Yalta agreement regarding, 282.
Civil-aviation convention (1944), ratification, 377.
Friendship, with Dominican Republic (1940), amend-
ment (1945), ratification, 538.
Friendship and alliance, with U.S.S.R., (1945) :
Exchange of memoranda with U.S., 448.
Text and related papers, 201.
Lend-lease, settlement of, with U.S., signature, 1118.
Sanitary convention (1926), as amended (1944), pro-
tocol prolonging, signature, 869.
Sanitary convention for aerial navigation (1933), as
amended (1944), protocol prolonging, signature,
869.
U.S. agricultural mission to, 1054.
U.S. assistance to, remarks by General Marshall, 484.
U.S. consular offices at Chungking, Dairen, Mukden, and
Peiping, opened, 46, 499, 687, 736, 828.
U.S. Consulate at Taipei (Taihoku), Taiwan (For-
mosa), administration, 872.
U.S. Embassy at Chungking closed, and opened as com-
bined office at Nanking, 828.
U.S. Embassy at Peiping, closed, 46.
U.S. engineer (Darnell) to visit, 962.
Visiting professor from U.S., 1092.
Chinese Changchun Railway, Sino-Soviet agreement re-
garding, 204, 207, 448.
Chistiakov, Col. Gen. Ivan M., letter to General Hodge on
administration of Korea, 111.
Chungking, China, closing of U.S. Embassy and opening
of U.S. Consulate, 828.
Churchill, Winston, German propaganda regarding. 365.
CITEJA (Comity International Technique d'Experts
Juridiques A^riens ) , 14th plenary session :
Agenda, 169.
Article by Mr. Latchford, 835.
Dates of meeting, 169, 219, 290.
U.S. Delegation, listed, 170, 835.
Civil aviation. See Aviation.
Civil aviation conference, Anglo-American :
Dates of meeting at Bermuda, 169, 219, 290.
Delegation, U.S., 75.
Results :
Agreement between U.S. and U.K., 302.
Final act, text, 584.
Civil aviation organization, international, proposed, dis-
cussed by Mr. Clayton, 1005.
Civil liberties in Japan, policy of Far Eastern Commis-
sion on, 946.
Claims :
Settlement agreement, U.S.-France, text, 997.
Settlement agreement, U.S.-U.K., 580.
U.S. property in Netherlands and Poland, instructions
for filing, 729, 1083.
Clay, Gen. Lucius D., U.S.A., commendation for part in
German industry settlement, 681.
Clayton, William L. :
Addresses and statements:
Civil aviation convention, international, specific
provisions, 1004.
Economic and financial agreements, U.S.-U.K., 271,
437.
Economic relations, importance to world peace, 677.
UNRRA, fourth Council session, 527, 644.
Appointment as U.S. Alternate Governor of the Inter-
national Monetary Fund and International Bank,
262.
Cleveland City Club, address by Mr. Wilcox, 96.
Coal :
Europe, shortage, 195, 300.
Transportation bottlenecks in shipping, 195.
Transportation from Poland to Europe and the Balkans,
plans for, 761.
U.S. shipments :
Article by Mr. Stillwell, discussed in, 832.
To France, 675.
To liberated areas, 152.
Coal Jlining Committee of ILO, first meeting in London,
accomplishments, article by Mr. Ross, 704.
Coffee agreement, inter- American (1940), protocol extend-
ing, 180, 778, 867.
Cohen, Benjamin V., participant in radio broadcast, 386.
Collaborators with enemy in Philippines, disposition of,
statement by President Truman, 534.
Collado, Emilio G., appointment as U.S. Executive Director
of the International Bank for Reconstruction and De-
velopment, 262.
Colombia (see also American republics) :
International Monetary Fund, signature and acceptance,
36.
Statement by Mr. Restrepo at the General Assembly
of the United Nations, 64.
Suffrage for women, question of, 249.
Visit of President-elect (Ospina P^rez) to U.S., 892.
Columbia University Club, Washington, address by Mr.
Braden, 396.
Combined Food Board :
Continuation, joint statement by President Truman,
Prime Minister Attlee, and Prime Minister King,
861.
INDEX, JANUARY TO JUNE 1946
1143
Combined Food Board — Continued
Establishment of International Emergency Food Council
to replace, 1075.
Functions, 949.
Grain shipments to India, 958.
Comity International Technique d'Experts Juridiques
A(5riens. See CITEJA.
Commerce Department :
Petroleum Facilities Coordinating Committee, member-
ship on, 3.
Transfer of certain functions from War and Navy De-
partments (Ex. Or. 9709), 684.
Commercial agreements with enemy countries, Czecho-
slovak declaration of invalidity of, 960.
Commercial and diplomatic agreement with Yemen, 297,
917.
Commercial Policy, Division of. Motion Picture Section in,
functions (D.R. 131.24), 1096.
Commercial policy, joint declaration with Prance, 995.
Commissions, committees, etc., international (see also name
of commission; United Nations) :
Agricultural Sciences, Inter-American Institute of, 179.
Allied Control Council for Germany, 76, 79.
Allied Council for Austria, 81.
Anglo-American Committee of Inquiry, 35, 74, 127, 169,
245, 290, 330, 375, 431, 476, 525, 565, 618, 655, 711, 755,
783, 917, 956, 1089.
Caribbean Commission, 36, 130, 264, 292, 331.
CITEJA, 169.
Combined Food Board, 861, 949, 958, 1075.
Commission of experts to prepare report on Italy- Yugo-
slavia boundary, 391.
Cotton Advisory Committee, 714.
Cotton Study Group, 169, 219, 290, 330, 711, 755, 813, 856,
S84.
Disarmament of Japan, Committee on, 566, 6.55.
Emergency Economic Committee for Europe, 248, 565,
618, 833, 949.
Emergency Food Council, 1075, 1111.
Far Eastern Commission, 127, 169, 370, 375, 431, 477, 525,
&55, 1074.
Food and agriculture, international organizations con-
cerned with, listed, 949.
Foreign Ministers, Council of :
Meetings in Paris, 169, 624, 711, 755, 813, 815, 856, 884,
891, 946, 990, 1042, 1074, 1111.
Meetings of Deputies, 169, 219, 290, 330, 375, 391, 431,
476, 525, 565, 618, 655, 711, 755, 813, 856, 884, 946,
990, 1042, 1074, 1111.
German External Property Commission, 76.
Great Lakes Fisheries, International Commission for,
823.
India Famine Emergency Committee, 1084.
Inter-AUjed Trade Committee, 395.
International Bank for Reconstruction and Develop-
ment, 36, 262, 381, 528, 563, 581, 856, 1044.
International Labor Organization, 35, 169, 245, 290, 348,
566, 691, 704, 713, 739, 799, 813, 882, 884, 946, 948,
993, 1028.
International Monetary Fund, 36, 262, 528, 563, 581,
856, 1044.
International Office of Public Health, 655, 711, 755, 813,
856, 884.
Merchant Marine Commission, Tripartite, 445.
North American Regional Engineering Committee, 377,
3T9.
Petroleum Facilities Coordinating Committee, 3.
Philippine War Damage Commission, 955.
Reparation Agency, Inter-Allied, 1063.
Rice Commission, 958.
Short-wave broadcasting committee, 862.
Trade organization, international, proposed, 383, 403,
431, 616, 631, 647.
United Maritime Authority, 171.
719539—46 2
Cormnis.sions, committees, etc., international — Continued
UNRRA, Council of, 4th session, 290, 293, 375, 431, 476,
525, 565, 856.
Commissions, committees, etc., national :
Advisory Council on International Monetary and Finan-
' cial Problems, 380, 381.
Atomic Energy Committee, 58, 177, 553, 555, 668, 774.
Cabinet Committee on Palestine and Related Problems.
1089.
Export Control Committee, 154, 178.
Famine Emergency Committee, 716.
Foreign Liquidation Commission, report, 820.
Interdepartmental Committee on Scientific and Cul-
tural Cooperation, 72, 428.
Rubber, Inter-Agency Policy Committee on, 541.
Communications. See Information ; Mails ; Telecommu-
nications.
Compulsory jurisdiction of International Court of Justice,
633.
Conferences, congresses, etc. (see also name of confer-
ence) :
Air-navigation conference, regional, 219, 290, 330, 375.
Allied-Swedish negotiations for German external assets,
990, 992, 1042, 1074, 1111.
Allied-Swiss negotiations on German external assets,
525, 655, 856, 990, 1101, 1121.
Civil-aviation conference, Anglo-American, 75, 169, 219,
290, 302, 584.
Civil Aviation Organization, Provisional, International,
conferences :
Annual as.sembly (1st), Montreal, 655, 711, 755, 813,
856, 884, 886, 946, 090, 1042, 1074.
European and Mediterranean air route services con-
ference, Paris, 525, 565, 618, 655, 711, 713, 755,
813, 856, 884, 946, 990, 1042, 1074.
Near Eastern route service conference, Cairo, 655, 711,
755.
North Atlantic route service conference, Dublin, 431,
476, 525, 565.
Copyright conference, inter-American, 82, 992, 1112.
Cotton Study Group, 169, 219, 290, 330, 711, 755, 813, 856,
884.
Economic counselors and advisers to U.S. missions in
Europe, 327.
Food and Agriculture Organization of the United Na-
tions, 277, 858, 1075.
German-owned patents outside Germany, 1112.
Inter- American conference for maintenance of conti-
nental peace and security, 427, 477, 732.
Inter- American conference on problems of war and peace,
285.
Inter-American Demographic Congress, 1st, 66.
International affairs, conference of lecturers on, 6, 11.
International Bank for Reconstruction and Development
and International Monetary Fund, meeting of
Boards of Governors at Savannah, 219, 290, 330, 331,
375, 431, 433, 476, 478, 525, 527.
International Bureau of Education, conference (9th),
375, 431, 476.
International Monetary Fund and International Bank
for Reconstruction and Development, meeting of
Boards of Governors at Savannah, 219, 290, 330, 331,
375, 431, 433, 476, 478, 525, 527.
Meteorological services, international, 219, 290, 330, 375.
Non-repatriable victims of German action, conference
on, 857.
North American regional broadcasting engineering con-
ference, 170, 376, 379.
Pan American Railway Congress (5th), 476, 525, 56.5,
618, 655, 711, 755, 813.
Reparation, Paris Conference on, 114.
Rio de Janeiro, postponement, 427, 477, 732.
Telecommunications, Bermuda, 59, 75.
1144
DEPARTMENT OF STATE BULLETIN
Conferences, congresses, etc. — Continued
Trade, plans, 140, 175 n., 188, 326, 327, 403, 455, 509, 561,
616.
United Maritime Autliority, Council of, 171.
UNRRA Council, fourth session, 293, 476, 565, 619, 857.
West Indian Conference, 169, 292, 330, 332, 840.
Congress, U.S. :
Atomic-bomb tests, selection of members to observe, 560.
Civil aviation convention, statement by Mr. Clayton
before Senate Foreign Relations Committee, 1004.
House Appropriations Committee, failure to appropriate
funds for State Department intelligence program,
statement by Secretary Byrnes, 687.
House Foreign Affairs Committee :
Military assistance to China, remarks by Mr. Acheson,
1115.
Military cooperation bill, inter-American, statement by
Secretary Byrnes, 1001.
Under Secretary of State for Economic Affairs, Office
of, action on bill for establishment, 1093.
UNESCO, statements by Mr. Benton and Mr. Mac-
Leish, 625, 629.
Messages from President Truman :
Annual message, 135.
Civil aviation convention, 1079.
Financial agreement, U.S.-U.K., 183.
Foreign loans, U.S. objectives, 380.
Inter-American Military Cooperation Act, 8.59.
Lend-lease reports (21st and 22d), letters of trans-
mittal, 223, 1091.
UNRRA, supplemental estimate, letter of transmittal,
866.
Military cooperation bill, inter-American (H.R. 6326),
statement by Secretary Byrnes before House Foreign
Affairs Committee, 1001.
Philippine rehabilitation and recovery (H.R. 5856 and
S. 1610), statement by President Truman, 822.
Publications, listed, 264, 352, 400, 452, 596, 1019, 1053,
1130.
Report of Foreign Liquidation Commission, 820.
Senate Committee on Banking and Currency, statement
by Mr. Ache.son on British loan, 511.
Senate Foreign Relations Committee :
St. Lawrence Seaway and Power Project, address by
Mr. Acheson, 334.
Statement by Mr. Clayton on civil aviation convention,
1004.
Under Secretary of State for Economic Affairs, action by
House Foreign Affairs Committee on bill (H.R.
6646 ) for establishment of office, 1093.
UNESCO, statement by Mr. Benton and Mr. MacLeish
before House Foreign Affairs Committee, 625, 629.
UNRRA report (5th, 6th, and 7tli), letters of trans-
mittal, 347, 757, 1126.
Winant, John G,, Senate confirmation of nomination as
U.S. Representative on Economic and Social Coun-
cil, 573.
Consular offices. See Foreign Service, U.S.
"Consultation Among the American Republics With Re-
spect to the Argentine Situation" (Blue Book), U.S.
memorandum regarding, 666.
Control Council for Germany :
Effectiveness discussed :
President Truman, 137, 138.
Radio broadcast, 910.
Functions, messages between Secretary Byrnes and
French Minister of Foreign Affairs (Bidault)
regarding, 440.
German assets :
Council law regarding, 283.
State Department denial of Mr. Nixon's conclusions
regarding, 76.
German reparations and post-war industries, 79, 636,
681.
Control Council for Germany — Continued
Joint declaration by U.S., U.S.S.R., U.K., and France
on liaison with other United Nations governments,
113.
Significance of Council, comments by Mr. Hilldring, 676.
Conventions. See Conferences ; Treaties.
Cooper, Prentice, appointment as U.S. Ambassador to
Peru, 828.
Copyright conference, inter-American :
Announcement, 82.
Drafting of document, 1112.
Meeting, dates, 946, 1042, 1074.
U.S. Delegation, listed, 992.
Corcoran Art Gallery, historical background, 323.
Costa Rica (see also American republics) :
Bretton Woods agreements (1945), signature and ac-
ceptance, 528.
Cultural leaders, visit to U.S., 868, 962.
Cotton :
Export-Import Bank loans for, 381, 382.
Report of textile mission to Japan, 1009.
Cotton Advisory Committee, International, 5th meeting:
Announcement and plans, 714.
Executive committee. Creation of, and powers and
duties, 887, 888.
Final resolution, text, 888.
Cotton Study Group, 169, 219, 290, 330, 884.
Council of United Maritime Authority. See United Mari-
time Authority.
Crane, Katharine Elizabeth, article on Blair House, 322.
Credentials. See Diplomatic representatives in U.S.
Crimea conference, agreement on repatriation of U.S. and
Soviet citizens, 443.
Cuba (see also American republics) :
Closing of U.S. Consulate at AntUla, 263.
Cultural leader, visit to U.S., 263.
Treaties, agreements, etc. :
Bretton Woods agreements (1945), 36, 528.
North American regional broadcasting, interim agree-
ment, 376.
Cultural and economic collaboravlon agreement, U.S.S.R.
and Mongolia, text, 968.
Cultural cooperation (see also American republics; China,
UNESCO) :
Address by : Mr. Benton, 408 ; Mr. Braden, 396, 683 ; Mr.
McGurk, 683.
Archaeological excavations In U.K., Invitation to U.S.
students to participate in, 961.
Article by : Miss Green and Mrs. Esman, 227 ; Mr. Mc-
George, 72.
Interdepartmental Committee on Scientific and Cultural
Cooperation, 428, 1092.
Korean leaders visit U.S., 812.
U.S. Agricultural Mission to visit Near East, 348.
U.S. program in Near East, 503, 608.
Visitors from U.S. to —
China, 961, 962, 1092.
Near East, 1011.
Other American republics, 40, 351, 870, 960, 962.
Cultural-relations attaches, description of activities, 608.
Currency (see also Financial agreement, U.S.-U.K.),
Czechoslovak, deadline extended for deposit of, 339.
Curzon Line, comments on, 189.
Customs :
Modvs vwendi between Brazil and Venezuela, termina-
tion, 581.
Procedure, discussion by U.S. and Canadian officials,
261.
Czechoslovakia :
Ambassador to U.S. (SlAvik). credentials, 1082.
Attitude toward Siam in World War II, 730.
Documents, U.S. order for restoration of, 338.
Issuance of death certificates by, 262.
Relations with Germany (1940), 462.
INDEX, JANUARY TO JUNE 1946
1145
Czechoslovakia — Continued
Securities, deadline extended for deposit of currency
and registration of securities, 330.
Statement by Mr. Masaryk at General Assembly of
United Nations, 64.
Treaties, agreements, etc. :
Bretton Woods agreements (1945), signature and ac-
ceptance, 36.
Civil aviation, air-transport services, bilateral, with
U.S., 83.
Commercial agreements with enemy countries,
Czechoslovak declaration of invalidity of, 960.
Monetary agreement with U.K., 81.
I^ostal, universal (1939), adherence, 350.
War criminals of European Axis, prosecution and pun-
ishment of (1945), accession, 261.
Dairen, Cliina :
Opening of U.S. Consulate, 499. 736.
Sino-Soviet agreement regarding, 204, 205.
Yalta agreement regarding, 282.
Damages. Sec Claims; Reparation.
Danubian transportation problems, article by Mrs. Whit-
nack and Mr. Handler, 1108.
Darnell, Richard C, to visit China, 962.
Davidson, Kenneth W., visiting professor to Chile, 962.
de Wolf, Francis C, address at North American regional
broadcasting engineering conference, 379.
DeCourcy, William E., designation in State Department,
826.
Delgado, Francisco A., appointment as member of Philip-
pine AVar Damage Commission, 955.
Demilitarization. See Germany ; Japan ; Treaties.
Democracy, definition, address by Mr. Braden, .536.
Demographic Congress, first inter-American (in Mexico
City, October 1943), article by Miss Roberts, 66.
Denazification procedures in Germany, 547, 910.
Denmark :
A.ssets belonging to U.S. nationals, release, 1083.
' Attitude on Charter of United Nations, statement by
Mr. Rasmu.ssen at General Assembly, 64.
Hitler's plans for (1940, 1942), German documents on,
699, 702, 939.
Treaties, agreements, etc. :
Civil aviation, interim agreement (1944), U.K. with-
drawal of reservation respecting Denmark, 715.
War criminals of the European Axis, prosecution and
punishment of (1945), accession, 261.
Whaling, regulation of, supplementary protocol
(1944), 347.
Denny, Charles R. (acting chairman. Federal Communi-
cations Commission), letter to State Department on
status of U.S. short-wave broadcasting, 904.
Departmental regulations :
Archives, German, Italian-Fascist, and Japanese, re-
quests for information from (D.R. 230.1), 1016.
Area Divisions, functions (D.R. 132.16), 45.
Arms and Armaments, Policy Committee on, functions,
composition, etc. (D.R. 183.8), 1096.
Aviation Division, organization and functions (D.R.
1.31.11), 1131.
Broadcasting Division, International, functions (D.R.
132.12), ■'43.
Censorship files, presidential authority for review of,
264.
Central Services, Division of, functions (D.R. 121.4),
1094.
Commercial Policv, Division of. Motion Picture Section
in, functions (D.R. 181.24), 1096.
Consular services to ships and seamen, transfer of func-
tions to Shipping Division, 83.
Contacts with Department of Justice regarding immi-
gration and visa matters (D.R. 232.2), 970.
Employment of aliens (D.R. 322.1), 1016.
Departmental regulations — Continued
Exchange of Persons, Division of International, func-
tions (D.R. 132.14), 44.
Foreign Service, Office of. Corps of Foreign Service In-
spectors in, functions (D.R. 122.1), 1095.
Foreign Service, Secretariat of Board of Examiners,
functions and organization (D.R. 122.8), 1016.
Geographic Offices, divisions, functions, and organiza-
tion (D.R. 140.1), 827.
Information and Cultural Affairs, Office of International,
functions and responsibilities (D.R. 132.10), 42.
Intelligence, Advisory Committee on, functions, member-
ship, and meetings (D.R. 183.5), 826.
Intellisence Coordination and Liaison, Office, functions
(D.R. 133.20), 827.
Intelligence Collection and Dissemination, Office, func-
tions and organization (D.R. 133.30), 827.
International Organization AfCairs, Division of, func-
tions (D.R. 118.11), 1094.
International Organizations Immunities Act, responsi-
bilities of Protocol Division and Division of Inter-
national Organization Affairs under (D.R. 118.11,
121.10, and 240.1), 1018, 10»9.
Investigations, Division of, functions and organization
(D.R. 123.6), 180.
Liaison with National Archives (D.R. 232.1), 969.
Libraries and Institutes, Division of, functions (D.R.
132.15), 45.
Motion Pictures Division, International, functions (D.R.
132.13), 44.
Occupied Areas, Assistant Secretary of State for, func-
tions, re.sponsibilities, etc. (D.R. 134.1), 1132.
Passenger Shipping Committee, composition and func-
tions (D.R. 183.7), 970.
Policy Information Services, functions (D.R. 183.4), 970.
Press and Publications Division, International, func-
tions (D.R. 132.11), 43.
Shipping Division, organization and functions (D.R.
131.12), 1132.
Special Assistant to Assistant Secretary for Economic
Affairs, responsibilities (D.R. 131.2), 1015.
Special Assistant to Secretary of State and Foreign
Liquidation Commissioner, delegation of authority
to (D.R. 139.1), 1017.
State Department records, use of (D.R. 420.1 ) , 779.
Surplus property, disposal, designation of authority for
(D.R. 139.2), 1017.
Telecommunications Division, organization and functions
(D.R. 131.13), 1132.
Transjwrt and Communications, Office of, functions,
responsibilities, etc. (D.R. 131.10), 1131.
Treaties, agreements, etc., advice and assistance on mat-
ters pertaining to ( D.R. 251.1 ) , 1017.
UNRRA Division, Office of Budget and Finance, func-
tions (D.R. 124.4), 1015.
Deutsche Auslandsproimnnndn Ziisammenstellung der
Standardthesen und RicMlinien fiir:
Article on by Mr. Bradford, 278.
Excerpts, 311, 365.
Diplomatic and commercial agreement with Yemen, con-
clusion, 917.
Diplomatic immunity and taxation, 199. 276, 348.
Diplomatic officer, transportation of ashes, 447.
Diplomatic relations, with —
Austria, recommended by Allied Council, 81.
Haiti, resumption, 682.
Rumania, establishment, 256, 298.
Siam, resumption, 5.
Trans-Jordan, letter from Secretary Byrnes to Senator
Myers on U.S. position regarding recognition of,
765.
Yemen, establishment, 446.
Yugoslavia, establishment, 728.
1146
DEPARTMENT OF STATE BULLETIN
Diplomatic representatives in U.S. :
Appointment of Austrian representative (Klein-
waeehter), 177.
Credentials, 132, 351, 730, 1000, 1050, 1082.
Disarmament. See Germany ; Japan ; Treaties.
Displaced persons and refugees (see also Anglo-American
Committee of Inquiry ; Cabinet Committee ; United
Nations) :
Admission to U.S. from U.S. zone in Germany, 400.
Camps in Europe, U.S. zone :
Austria, closing, comments by Secretary Byrnes, 498.
Germany :
Closing —
Comments by Secretary Byrnes, 498.
Postponement, 764.
Condition, discussed in radio broadcast, 913.
Poland, policy on, exchange of letters between Senator
Vandenberg and Mr. Aclieson, 1003.
Conference on non-repatriable victims of German action,
857.
Discussion in General Assembly regarding, 199, 276.
Immigration quota, preference to persons in U.S. zone
in Germany, 635.
Migration policies and world economy, address by Mr.
Warren, 213.
Property in U.S. owned by German and Japanese refu-
gees, release, 1011.
Resettlement agency for, creation of, comments on U.S.
proposal for, 865.
Documents, Czechoslovak, restoration of, 338.
Dodecanese, disjjositlon of German assets In, 124.
Dominican Republic (see also American republics),
treaties, agreements, etc. :
Bretton Woods agreements (1945), signature and ac-
ceptance, 36.
Civil-aviation agreements : air transport and interim
(1944), acceptance, 377.
Clvll-aviation convention (1944), ratification, 377.
Friendship, with China (1940), amendment (1945),
ratification, 538.
North American regional broadcasting, interim agree-
ment, signature, 376.
Dort, Dallas, article on UNRRA, 359.
Double-taxation conventions, U.S. and —
France, conversations regarding, 451.
U.K., protocol modifying, 1052, 1087.
Duran, Gustavo, designation in State Department, 826.
East Asia, German propaganda to, 313.
Economic Affairs, Office of Under Secretary of State for,
establishment, action by House Committee on For-
eign Affairs on bill (H.R. 6640), 1093.
Economic Affairs, Special Assistant to Assistant Secre-
tary for, responsibilities (D.R. 131.2), 1015.
Economic and cultural collaboration agreement, U.S.S.B.
and Mongolia, text, 968.
Economic and Employment Commission of United Na-
tions :
Establishment, resolution on, 798.
Initial members, 799.
Olijectives, 797, 798, 800.
Opening meeting at New York, 814.
Relation to ILO, 799.
Scope, 800.
Subcommissions, establishment and comiwsition of, 798,
802.
Economic and Social Council of United Nations :
Commissions and committees of, composition, 471, 596.
Co-operative Alliance, International, request for mem-
bership in, 126.
Designation of U.S. Representative (Winant), 74, 573.
Displaced persons and refugees, problems, 276.
Employment, U.S. resolution on trade and, 326.
Employment and trade conference, plans, 648, 988.
Economic and Social Council — Continued
Health conference under au.spices of, 1076.
Lal)or groups, request for membership, 126.
Meetings, dates: in London, 24.5, 290, 330; in New York,
476, 884, 1111.
Opening meetings of Commissions in New York, 814.
Organization of, 62, 63, 65, 83, 90.
Trade and employment, U.S. resolution on, 326.
Trade and employment conference, plans for, 648, 988.
Women, International Federation of, request for mem-
bership, 126.
Work of, discussed in address by Mr. Winant, 975.
World Federation of Trade Unions, request for mem-
bership, 91.
Economic counselors and advisers to U.S. missions in
Europe, participants and program of conference in
Paris, 327.
Economics (see also Economic and Employment Commis-
sion ; Finance) :
Aid to Korea, U.S. consideration of, 449.
Allied Control Council plan for German post-war level,
636.
Allied economic control policy in Japan, study of, 10.
Austria, loan from U.S. to purchase surplus property,
818.
Cotton. See Cotton.
Economic warfare, use of Proclaimed List of Blocked
Nationals in, 876.
Emergency Economic Committee for Europe, 248, 565,
618, 8.33, 949.
Financial relations, importance of, addresses by : Mr.
Acheson, 317, 511 ; Secretary Bvrnes, 267 ; Mr. Clay-
ton, 271, 437, 677 ; Mr. Winant, 975.
Foreign loans, table showing those authorized by Ex-
port-Import Bank, 384.
Foreign loans, U.S. policy regarding, 139, 144, 380, 381.
France, agreement on economic and financial problems.
994, 1127.
German holdings in Switzerland, understanding between
Allied and Swiss Governments regarding, 1121.
Migration policies and world economy, address by Mr.
Warren, 213.
Reconstruction of Fi-ance, address by Mr. Hilldring, 674.
Rubber, relation to world economy, article by Mr.
Phillips, 932.
Situation in Far East, Ambassador Pauley to study, 821.
Wool program proposed, comments by President Tru-
man, 491.
ECOSOC. See Economic and Social Council.
Ecuador (see also American republics) :
Constitution, new, provision for women suffrage, 249.
Galapagos base, U.S. withdrawal from, 644.
Treaties, agreements, etc. :
Bretton Woods agreements (1945), signature and ac-
ceptance, 36.
Sanitary convention (1926), as amended (1944),
protocol prolonging, signature, 869.
Sanitary convention for aerial navigation (1933), as
amended (1944), protocol prolonging, signature,
869.
Education (see also UNESCO) :
Conference of International Bureau of Education (9th),
375, 431, 476.
Cooperative, with Panama, 223.
Exchange program with Near East, 608.
Foreign students, special courses for, colleges listed,
1013.
Importance of short-wave broadcasting in, article by Mr.
Stone, 906.
Japan :
SCAP report on, 807.
U.S. advisory group to, 345, 641, 767.
U.S. institutions In Near East, 506, 609.
INDEX, JANUARY TO JUNE 1946
1147
Educational, Scientific and Cultural Organization of the
United Nations. See UNESCO.
Egypt (see also Near East) :
Air transport agreement, with U.S., text of annex, 1088.
Bretton Woods agreements (1945), signature and ac-
ceptance, 36.
U.S. Consulate at Suez, closing, 544.
Eisenhower, Gen. Dwight D., attitude on civil administra-
tion of Germany, 197.
El Salvador {see also American republics) :
Bretton Woods agreements (1945), signature and ac-
ceptance, 528.
Cultural leader, visit to U.S., 40.
Elections, Argentine:
U.S. attitude on charges against Embassy by Peron, 222.
U.S. memorandum regarding, 667.
Elections, German, January 1946, results, 550.
Elections, Greeis, Allied Mission to observe (see also Elec-
toral lists) :
Appointment by President Truman of U.S. Delegation,
56.
Organization and list of U.S. representatives, 129, 297.
Report, 671, 865.
Statement by Secretary Byrnes, 529.
Statement on results, by chiefs of Mission, 582.
Elections, Italian, U.S. interest in, 299.
Elections, Japanese:
Advisability of, exchange of communications between
General MacArthur and Far Eastern Commission
regarding, 639.
Far Eastern Commission, decision regarding, 566.
Postponement, 749.
SCAP report on, 1067.
Elections, Polish :
Plans, note from Polish Ambassador, 762.
Keferendum, purpose of, note from Polish Ambassador
explaining, 762.
Relation of Export-Import loan to, 761.
Statement by Secretary Byrnes, 209.
Elections, Rumanian. U.S. protest, 1007, 1048, 1125.
Electoral lists, Greek, Allied Mission to observe revision :
Invitation to U.S. to send delegation, 1050.
Mr. Morris heads U.S. Section, 1128.
Emergency Economic Committee for Europe, under aus-
pices of Conference of Ministers of Food and Agricul-
ture, 248, 565, 618, 833, 949.
Employment (see also Economic and Employment Com-
mission) :
Conference on trade and U.S. proiwsals for considera-
tion by, 326, 403, 455, 509, 561, 616.
U.S. proposals concerning, article by Mr. Plank and Mr.
Erickson, 561.
Employment of aliens. State Department policy (D.R.
322.1), 1016.
Engert, Cornelius Van H., to head UNRRA mission to
Turkey and Near East, 960.
Enemy aliens from other American republics, 33, 732.
Enochs, Elizabeth Shirley :
Article on child welfare in American republics, 428.
Report to Pan American Union on first Pan American
Congress of Social Service, 21.
Entry permits for U.S. owners of property in Poland, 670.
Erhardt. John G., appointment as U.S. Political Repre-
sentative to Austria, 177.
Erickson, Maurice J., article on U.S. trade proposals, 561.
Ertegiin, Mehmet Miinir, Turkish Ambassador to U.S.,
ashes transported to Turkey, 447.
Esman, Sherly Goodman, article on cultural centers in
other American republics, 227.
Espionage activities of Red Army ofiicer (Redin), alleged,
U.S. reply to Soviet inquiry regarding charges, 682.
Espionage in Argentina, findings regarding, 285.
Estate tax, double, convention with France, conversations
regarding, 451.
Ethiopia :
Agreement for the prosecution and punishment of major
war criminals of the European Axis (1945), ac-
cession, 261.
Bretton Woods agreements (1945), signature and ac-
ceptance, 36.
Minister to U.S. (Imru), credentials, 1000.
Europe (see also individual countries) :
Cereal requirements, table showing country-by-country
estimate, 898.
Displaced persons in. See Anglo-American Committee
of Inquiry ; Displaced persons.
Food crisis:
Address by: Mr. Hoover, 717; Mr. La Guardia, 716;
President Truman, 716.
Article by Mr. Stillwell, 831.
Radio broadcast, 191.
German propaganda, 311, 36i5.
Loans authorized by Export-Import Bank, table, 385.
Population, displacement, 213.
Reconstruction of, address by Mr. Thorp, 300.
Regional arrangements in, discussed in article by Mr.
Allen, 923.
Shortage of coal and wheat, 300.
European and Mediterranean air route service conference :
Meeting at Paris, 525, 565, 618, 655, 711, 755, 813, 856, 884,
946, 990, 1042, 1074.
U.S. Delegation, 713.
Evans, Robert F., designation in State Department, 351.
Evans, Walter (vice president, Westinghouse Electric Cor-
poration), letter to State Department on status of
U.S. short-wave broadcasting, 903.
Exchange-students program, address by Mr. Braden, 396.
Executive orders :
Air-navigation facilities abroad, functions relating to,
transferred from War and Navy Departments to
Department of Commerce (Ex. Or. 9709), 684.
Anglo-American Committee of Inquiry, providing for
furnishing information to (Ex. Or. 9682), 127.
Cabinet Committee on Palestine and Related Problems,
establishment (Ex. Or. 9735), 1089.
Inter-American Affairs, Office of, termination, and trans-
fer of certain functions to State Department (Ex.
Or. 9710), 686.
Lend-lease, maintenance of accounts and fiscal records
of, transfer to Treasury Department (Ex. Or.
9726), 959.
Surplus property in foreign areas (amending Ex. Or.
9630) , 1000.
War Relief Control Board, President's, termination (Els.
Or. 9723), 1015.
Exemptions and immunities :
International Organizations Immunities Act, description,
348.
United Nations Secretariat, discussion on diplomatic
immunity and taxation, 199, 276.
Exit permits for Austrian refugees, 73.
Export Control committee, membership, 154.
E.xport-Import Bank of Washington :
Appropriation to increase lending power, 380, 381.
Loans authorized :
Greece, 78.
Poland, exchange of notes, 761.
Table showing, 384.
Exports Managers Club, New York, N.Y., address by Mr.
Brown, 539.
Expropriation, Poland, compensation to U.S. property
owners, discussed, 670.
External assets, German, negotiations :
Allied-neutral, 374, 955, 1077.
Allied-Swedish, 990, 992, 1042, 1074, 1111.
Allied-Swiss, 525, 565, 618, 655, 711, 755, 813, 856, 884,
946, 955, 990, 1101, 1121.
1148
DEPARTMENT OF STATE BULLETIN
External Property, German, Commission for :
Creation, by Allied Control Council, 283.
State Department denial of Mr. Nixon's conclusions on
protection of German assets, 76.
Fahy, Charles, appointment as Legal Adviser in State
Department, 735, 1097.
Famine Emergency Committee :
Article by Mr. Stillwell, discussed in, 832.
Report on world food requirements and supplies, 897.
Visit to American republics of Mr. Hoover, and list of
party, 958.
FAO. See Food and Agriculture Organization of United
Nations.
Far East (see also Far Eastern Commission and the individ-
ual cou7itries) :
Cultural leaders, visit to U.S. from Korea, 812.
German propaganda in East Asia, 313.
International Military Tribunal for :
Establishment of, text of charter, 361, 890.
Members appointed, 751.
Jurisdiction of General MacArthur, extent, 449.
Population, displacement, 216.
Kadio broadcast on Korea and, 104.
Regional arrangements in, discussed in article by Mr.
Allen, 924.
Rice shortage, 300.
Rubber allocations for U.S., 224.
U.S. Ambassador (Pauley) to study economic problems
in, 821.
U.S. policy, statement by President Truman, 138.
War criminals, trial of, 376, 809.
—Charter and proclamation regarding, 361, 618, 890.
Indictment, statement by Mr. Keenan, 846.
List of, 847.
Far Eastern Advisory Commission. See Far Eastern
Commission.
Far Eastern Commission :
Activities, 127, 431.
Address by Secretary Byrnes, 378.
Aliens in Japan, policy regarding, 1042.
Berendsen, Sir Carl, remarks regarding U.S. food ship-
ments to Japan, 712.
Chairman, officers, and committees, 376, 477.
Civil liberties in Japan, policy relating to, 946.
Constitution in Japan, new :
Criteria for adoption, 886.
Message from State Department on, 991.
Text of consultation with SCAP, 991.
Disarmament of Japan, committee on, establishment,
566, 655.
Inter-Allied Trade Committee, proposals for establish-
ment, submitted to, 395.
Japan, elections. See Elections, Japanese.
Japan, food supplies for, statements by Mr. Acheson,
Mr. Hilldring, and Mr. Hoover, 756, 897, 947.
Meeting, first, members and proceedings, 375, 378.
Mission to Tokyo, report, 291, 370.
Press relations, procedure on, 431.
Procedure for submitting documents, 525.
Reparations policy for Japan, interim, 884, 946, 990,
1074, 1111.
Secretariat, new positions approved and defined, 526.
Soviet participation, 372.
War criminals, approval of policy regarding, 618.
Fascism in American republics, address by Mr. Braden,
101.
Fascism on trial at Niirnberg, radio broadcast, 250.
Fascism in Argentina, U.S. memorandum on, 285.
Fearing, George R., Jr., designation in State Department,
826.
Feinsinger, Nathan P., designation as U.S. representative
on Governing Body of ILO, 713.
Fellowship program, cooperative, Panama-U.S., agree-
ment, 223.
Finance (see also Economics) :
Advisory Board of Office of War Mobilization and Re-
conversion, resolution on financial agreements, 436.
British loan. See Financial agreement, U.S.-U.K.
Czechoslovak securities, deposit and registration, 339.
International Monetary and Financial Problems, Na-
tional Advisory Council on, 380, 381.
Intel-national Monetary Fund and International Bank
for Reconstruction and Development, meeting of
Boards of Governors, 219, 245, 290, 330, 331, 375, 431,
476, 478, 525, 527.
Italy, funds belonging to nationals of United Nations,
restoration, 817.
Japan, money, banking, and public finance, SCAP report,
806.
Financial agreement, U.K.-Greece, statement by Secretary
Byrnes, 155.
Financial agreement, U.S.-U.K. :
Addresses and statements by : Mr. Acheson, 185, 317,
511, 759; Mr. Brown, 540; Secretary Byrnes, 267;
Mr. Clayton, 271, 437; Mr. Thorp, 302; Mr. Wilcox,
96.
Charts illustrating British iwsition in world trade, 515.
National Advisory Council on International Monetary
and Financial Problems, statement, 381.
Office of War Jlobilization and Reconversion, resolution
by Advisory Board, and statement of President Tru-
man, 436.
Transmittal to Congress by President Truman, 183.
Financial aid to persons in Albania, limitation, 1120.
Finland, journalists visit to U.S., 339.
Fisheries and Wildlife Branch of International Resources
Division, establishment and functions, 735.
Fisheries oC the Great Lakes, proposed convention with
Canada, letter of transmittal by President Truman,
with report by Secretary Byrnes and summary of text,
823.
Fishing, Japanese, Allied policy on, 346.
Flack, Joseph, appointment as U.S. Ambassador to Bolivia,
828.
Food («ee also FAO; UNRRA) :
Caribbean area, efforts by U.S. and U.K. to expand
production. 130.
Combined Food Board operations, joint statement by
President Truman, Prime Minister Attlee, and
Prime Minister King, 86l.
Emergency Economic Committee for Europe, Coordina-
tion with FAO, 248, 833.
Emergency Food Council, to replace Combined Food
Board, 1075.
Famine crisis :
Addresses and statements by : Mr. Acheson, 893 ; Mr.
Hoover, 717 ; Mr. La Guardia, 716 ; President Tru-
man, 246, 412, 716.
Discussion with U.K. mission, 864, 895.
World cereal requirements, tables, 897.
Famine Emergency Committee, discussed in article by
Mr. Stillwell, 831.
Germany, rations, 192.
India, crisis, exchange of messages between —
Indian Vicerov (LordWavell) and President Truman,
861.
Mr. Minor and Mrs. Pearl S. Buck, 1084.
International organizations concerned with, listed, 949.
Japan, policy of Far Eastern Commission regarding, and
statements by Mr. Acheson and Mr. Hilldring, 712,
756. 947.
Rice, shortage of crops, 291, 300.
Bice, tripartite agreement with U.K. and Siam, 863,
9.58.
Sea food, occupation orders for Japan regarding pro-
duction, 346.
Shortages. 191, 291, 300, 542.
TransjMjrtation of, U.S. vessels to be made available to
foreign countries for, 730, 822.
INDEX. JANUARY TO JUNE 1946
1149
Food — Continued
United Nations cooperation urged to combat world short-
age, 276.
Wlieat. See Wheat.
Pood and Agriculture, conference of Ministers, meetings,
565, 618.
Food and Agriculture Organization of United Nations:
Combined Food Board, relation to, 1075.
Conference, plans for, 277.
Exemptions and immunities, 348.
Functions, SS2, 949.
Secretariat, 814.
Urgent food problems, special meeting, 618, 858, 884, 946.
Message of President Truman, 948.
Statement by Director General (Orr), 949.
U.S. responsibilities in, letter from President Truman
to Secretary of Agriculture (Anderson), 656.
Foreign intelligence activities :
Directive by President Truman, 174.
N.Y. Publishers Association, endorsement, 260.
Foreign Liquidation Commissioner :
Delegation of authority to (D.R. 139.1 and 139.2), 1017.
Report to Congress on sale of surplus property abroad,
820.
Foreign Ministers, Council of:
Paris meeting, beginning April 25:
Dates of meeting, 169, 624, 1042.
Departure of Secretary Byrnes and staff, 711.
Draft treaty on Germany, 815.
Recommendations and report of Secretary Byrnes, 891.
Paris meeting, beginning June 15, departure of Secretary
Byrnes, 1074.
Foreign Ministers, Council of, Deputies of :
Appointment of commission to recommend Italy- Yugo-
slavia boundary, 391.
Meetings, dates, 711, 884, 1111.
Foreign nationals in Japan, repatriation of, SCAP report,
751.
Foreign policy, U.S., and its principles, address by Mr.
Braden, 294.
Foreign policy, U.S., mail on, analysis of, 350.
Foreign Policy Association, Hartford, Conn., address by
Mr. Chapin, 163.
Foreign Policy Association, New York, N.Y., address by
Secretary Byrnes, 267.
"Foreign Relations of the United States : The Paris Peace
Conference, 1919", publication of vol. VII : 918.
"Foreign Relations of the United States, 1931", publica-
tion of vol. Ill : 1129.
Foreign Service, U.S. (see also Diplomatic relations) :
Ambassadors :
Appointment: Argentina (Messersmlth), 687; Bel-
gium (Kirk), 224; Bolivia (Flack); 828; Brazil
(Pawley), 828; Iran (Allen), 828; Mexico
(Thurston), 971; Norway (Bay), 1054; Peru
(Cooper), 828; U.K. (Harriman), 687; U.S.S.R.
(Smith), 544.
Resignation: U.S.S.R. (Harriman), 306.
Consular offices : Antilla, Cuba, closing, 263 ; Arica,
Chile, closing, 499; Beira, Portuguese East Africa,
closing, 132; Berlin, Germany, opening, 399, 451
(corrected, 872) ; Bremen, Germany, opening, 399,
687, 872 ; Casablanca, Morocco, elevation to rank
of Consulate General, 872 ; Chungking, China, open-
ing, 828; Dairen, China, opening, 499, 736; Foynes,
Ireland, closing, 872; Gdansk, Poland, opening,
10.54 ; Frankfurt, Germany, opening, 399, 451 ;
Hamburg, Germany, opening, 399, 451; Horta,
Payal, Azores, closing, 1130; Limerick, Ireland,
opening, 872; Malmo, Sweden, closing, 400, 1130;
Mangos, Brazil, closing, 1054; Mukden, China, open-
ing, 687 ; Munich, Germany, opening, 399, 544 ;
Oran, Algeria, closing, 1130; Peiping, China, open-
ing, 46 ; Poznan, Poland, opening, 263 ; Saigon,
Foreign Service, U. S. — Continued
Consular offices — Continued
French Indochina, opening and elevation to rank
of Consulate General, 736, 828, 1054; Strasbourg,
France, opening, 736; Stuttgart, Germany, open-
ing, 399, 451; Suez, Egypt, closing, 544; Taipei
(Taihoku), Taiwan (Formosa), opening and ad-
ministration, 736, 872; Tapachula, Mexico, closing,
1130; Tvmis, Tunisia, elevation to rank of Con-
sulate General, 1130; Turin, Italy, opening, 224,
1054 ; Zagreb, Yugoslavia, opening, 1130.
Consular services to ships and seamen, inter-offlce trans-
fer of functions, 83.
Diplomatic Mission to Yemen, membership, 446.
Embassies :
Chungking, China, closed at and reestablished as
combined office at NanMng, 828.
Nanking, China, opening of combined office, 828.
Peiping, China, closing, 46.
Foreign Service Inspectors, Corps of, functions (D.R.
122.1), 1095.
Future of, address by Mr. Chapin, 163.
Institute proposed, 166.
Legations: Bangkok, Siam, opening, 83; Budapest, Hun-
gary, change from U.S. Mission to, 352 ; Siam, open-
ing, 5.
Medal for Merit presented to officers of, 499.
Ministers, appointment: Iraq (Pinkerton), 828; Liberia
(Lanier), 352, 450; Luxembourg (Kirk), 224; Saudi
Arabia (Childs), 828; Siam (Stanton), 828.
Philippine foreign-affairs training program, 298.
Representative in Austria (Erhardt), appointment, 177.
Research materials, procurement of, article by Mr.
Himiphrey, 22.
Secretariat of Board of Examiners, functions and or-
ganization (D.R. 122.8), 1016.
Training program:
Announcements, 918, 972, 1020, 1054, 1097, 1133.
Examinations for veterans and members of the armed
forces, 306.
Foreign students, special courses for, colleges listed, 1013.
Formosa, opening of U.S. Consulate at Taipei (Taihoku),
736, 872.
Foynes, Ireland, closing of U.S. Consulate, 872.
France (see also Europe) :
Caribbean Commission, membership in, 36, 292, 331, 332,
333.
Control Council for government of Germany, joint dec-
laration on liaison with other United Nations gov-
ernments, 113.
Economic reconstruction, U.S. aid In, address by Mr.
Hilldring, 674.
General Assembly, statement of M. Paul-Boncour, 89.
Germany, political reconstruction, policy toward, 552.
Minister of Foreign Affairs (Bidault), message to Secre-
tary Byrnes regarding establishment of central
agencies for control of Germany, 441.
Peace treaties, part in proposed conference on, 112.
President Gouin, Joint declaration with President Tru-
man, on U.S.-French .agreements on economic and
financial problems, 994, 1127.
Security Council, discussion of presence of French troops
in Syria and Lebanon, 234, 275.
Spanish situation, position, and exchange of views with
U.S. regarding, 399, 412, 486.
Telegraphic service, direct, between Washington and
U.S. Embassy in Paris, 345.
Treaties, agreements, etc. :
Air transport, with U.S., signature, 583.
Bretton Woods agreements (1945), signature and ac-
ceptance, 36.
Disarmament and demilitarization of Germany, quad-
ripartite draft treaty, text, 815.
Double taxation, with U.S., conversations, 451.
Economic and financial, with U.S., text, 994, 1127.
1150
DEPARTMENT OF STATE BULLETIN
France — Continued
Treaties, agreements, etc. — Continued
German holdings, with U.S., U.K., and Switzerland,
summary of, 955.
Lend-lease settlement, with U.S., 997.
Reparation from Germany, draft, 114 n.
Rubber, purchase from Far East, bilateral, with U.S.,
1119.
Sanitary convention (1926), as amended (1944),
protocol prolonging, signature, 869.
Sanitary convention for aerial navigation (1933), as
amended (1944), protocol prolonging, signature,
869.
U.S. businessmen In, accommodations, 1086.
U.S. Consulate at Strasbourg, opening, 736.
Wheat crop, 193.
Zones of occupation in Austria and Germany, 603, 652.
Franck, Dorothea Seelye, articles on cultural relations
with Near East, 503, 608.
Franco y Bahamonde, Gen. Francisco:
Relations with Axis leaders, 413.
Retention as head of Spanish Government :
Attitude of U.S., U.K., and France, 399, 412, 486.
Remarks and discussion in Security Council regard-
ing, 709, 788, 796, 881.
Frankfurt, Germany, opening of U.S. Consulate General,
399, 451.
Free Germany Committee, 551.
Free press. See Press.
Freedom of infonnation :
Addresses by Mr. Benton and Mr. Braden, 392, 722.
U.S. proposal to establish subcommission of United
Nations on, 855.
Freedom of the press, radio broadcast on, 156.
French Indochina, opening of U.S. Consulate at Saigon
and elevation to rank of Consulate General, 736, 828,
1054.
Friendly Sons of St. Patrick, Society of. New York, N.Y.,
address by Secretary Byrnes, 481.
Friendship, agreement with Yemen, proposal, 297.
Friendship, treaty, China and Dominican Republic (1940),
amendment (1945), ratification, 538.
Friendship and alliance, treaty, China and U.S.S.R., agree-
ment and exchange of notes (1945), texts, 201.
Friendship and alliance, treaty, Poland and U.S.S.R., agree-
ment and ratification (1945) , texts, 340.
Friendship and mutual aid, treaty, Poland and Yugoslavia,
text, 919.
Friendship and mutual assistance, treaty, U.S.S.R. and
Mongolia, text, 968.
Frontier. See Boundaries.
Fry, Kenneth D., designation in State Department, 1054.
Fuller, Leon W., article on German political revival, 547.
Galapagos base, U.S. withdrawal from, 644.
Galbralth, John K., designation in State Department, 826.
Gdansk, Poland, opening of U.S. Consulate General, 1054.
General Assembly, First Part of First Session in London :
Address by Secretary Byrnes, 87.
Atomic energy :
Establishment of Commission, 89, (text) 198.
Resolution on, 19.
Statement by Secretary Byrnes, 146.
Commissions and committees of, creation and composi-
tion, 20, 21, 467.
Greece, situation discussed, 199.
Indonesia, situation discussed, 199.
Meetings, dates. 169, 330, 525, 565, 946, 1042, 1111.
Organization, 17, 65, 147, 234, 277, 468.
President, Paul-Henri Spaak, 17.
Proceedings, 17, 62, 147, 199, 233, 274, 386, 468.
Refugee problem discussed, 199, 236, 276.
Report by Secretary Byrnes and letter of transmittal to
Congress by President Truman, 540.
General Assembly — Continued
Secretariat, organization of, 147.
Secretary-General, Trygve Lie, 147, 234.
Terms of oflice of first officials, 277.
Tribute to Franklin D. Roosevelt, by Mr. Spaak, 18.
Trusteeship, discussion, 90, 199.
Wheat and rice, draft resolution on, text, 291.
Geographic OflSces, divisions, functions, and organization
(D.R.), 827.
Geographic offices. State Department Intelligence Oflice,
Russell Plan for, 928.
German documents, texts of translations, 459, 699, 936, 984,
1038, 1103.
German-owned patents outside Germany, conference on,
nil.
Germany (see also Control Council) :
Argentine complicity with Nazi regime, 285.
Assets in Dodecanese and Venezia Giulia, disposition,
124.
Assets in neutral countries, negotiations regarding (see
also Property, infra) :
Allied-neutral, U.S. representative, 374, 1077.
Allied-Swedish, 990, 992, 1042, 1074, 1111.
Allied-Swiss, 525, 565, 618, 655, 711, 755, 813, 856, 884,
946, 955, 990, 1101, 1121.
Restitution, 120, 121.
Boundaries, reparations, and demilitarization of, views
of Council of Foreign Ministers on, discussed by
Secretary Byrnes, 953.
Cartels in, question of revival, discussed in radio broad-
cast, 911.
Central agencies for control of, U.S. and French posi-
tions on establishing, 440.
Citizens in Spain, repatriation, 1011.
Civil administration, question of, 197.
Damages. See Reparation.
Deutsche AusJ^ndspropaganda, article on, by Mr. Brad-
ford, 278.
Denazification procedures, 547, 910.
Disarmament and demilitarization, quadripartite draft
treaty on, 815.
Displaced-persons. See Displaced persons.
Economic penetration in Western Hemisphere, effective-
ness of Proclaimed List In eliminating, article by
Mr. Monsma, 876.
Enemy aliens from other American republics, disposi-
tion of, U.S. memorandum and proclamation, 33,
732.
External Property Commission for, 76, 283.
Food rations, 192.
Hess's flight to England, oflScial documents on (1941),
1103.
Industries, post-war, plan of Allied (Control Council
for, 636, 681.
Merchant fleet, disposal, 445.
Nationals in Japan, 374.
Navy, Anglo-Soviet-American communique on disposal
of, 173.
Nazi atomic plants in Spain, alleged, statement regard-
ing, 681.
Nazis in Spain, repatriation of, remarks to Security
Council by Mr. Stettinius regarding, 789.
Occupation by Allies, discussed in radio broadcast, 910.
Official documents, translations, 459, 460, 699, 936, 984,
1103.
Parcel-post service to U.S. zone, 1012.
Patents outside Germany, German-owned, conference on,
1112.
Permits for U.S. citizens to transport automobiles to,
447.
Polish-Soviet treaty regarding, 340.
Political reconstruction, U.S. policy, article by Mr.
Fuller, 547.
Postal service with other countries, resumption, 490, 635.
INDEX, JANUARY TO JUNE 1946
1151
Germany — Continued
Propaganda program abroad, excerpts from ofiBcial pub-
lications, 278, 311, 365.
Property (see also Assets supra) :
Allied Control Council law regarding, 76, 283.
Instructions to U. S. citizens and others for claiming
German-held property in Netherlands, 729.
Raw materials for, U.S. program for supplying, 173.
Refugees, release of property in U.S. 1011.
Relations with Japan (1939-41), texts of documents,
1038.
Relations with Spanish Government (1940-43), texts of
documents, 413.
Reparation. See Reparation.
Slave labor, 214, 215, 300.
Steel industry in, discussed in radio broadcast, 910.
Transportation system in, 675.
U.S. Consulates, opening, 399, 451, 687, 872.
U.S. Consulates General at Berlin, Frankfurt, Hamburg,
and Munich, opening, 451, 544.
U.S. Political Adviser on German Affairs, Office of, 872.
U.S. zone, progress of reeducation in, 698.
War aims (1940), 459, 466.
Zones of occupation, article by Mr. Hoffman, 599.
Ginzberg, Eli, appointment as U.S. representative at con-
ference on non-repatriable victims of German action,
857.
Gold:
Allied-Swiss agreement regarding German gold in Switz-
erland, 1101, 1121.
Paris conference resolution on transfer from Germany
to neutral countries, 121.
Restitution to Hungary of gold in U.S. custody, 1120.
Treaty provisions regarding restitution of gold found in
Germany, 120.
Good-neighbor policy, comments on, 295, 296.
Gouin, Felix (President of Provisional French Govern-
ment), declaration, joint, with President Truman, on
U.S.-French agreements on economic and financial
problems, 994, 1127.
Grady, Henry F. :
Appointments:
Alternate on Cabinet Committee on Palestine, 1089.
Head of U.S. Delegation to observe Greek elections,
56, 129.
Statement on Greek elections, 582.
Grain. See Wheat.
Gray, Cecil Wayne, designation in State Department, 969.
Gray, Edward R., designation in State Department, 1097.
Great Britain. See United Kingdom.
Great Lakes fisheries :
International Board of Inquiry, report by, cited in letter
of President Truman to Senate, 823.
International Commission for, proposed in letter of Sec-
retary Byrnes to President Truman, 823.
Proposed convention with Canada, 823.
Greece :
Advisory Economic Mission to, proposal by U.K., 79.
British troops in, discussion in Security CouncU, 233.
Economic experts from U.S., offer, 79.
Elections, Allied Mission to observe (see also Elections,
Greek 1, .56, 129, 297, .529, 5S2, 671, 805.
Electoral lists, revision of. Allied Mission to observe,
1050, 1128.
General Assembly, discussion, 199.
Good-will visit of U.S.S. Missouri, 731.
Loan to, approval by Export-Import Bank, 78.
Negotiations with U.S. on expansion of production and
employment, 175.
Treaties, agreements, etc. :
Air services, with U.K., signature, 582.
Air transport, with U.S., signature, 583.
Bretton Woods agreements (1945), signature and ac-
ceptance, 36.
719539—46 3
Greece — Continued
Treaties, agreements, etc. — Continued
Civil-aviation agreement, air transport (1944), ac-
ceptance, 715.
Financial agreement, with U.K., 155.
Sanitary convention (1926), as amended (1944), pro-
tocol prolonging, signature, 869.
Sanitary convention for aerial navigation (1933), as
amended (1944), protocol prolonging, signature,
869.
War criminals of the European Axis, prosecution and
punishment of (1945), accession, 261.
Greene, Dorothy, article on cultural centers in other
American republics, 227.
Greenland, liquidation of surplus property in, 350.
Gromyko, Andrei A., letters and remarks to Security
Council regarding Soviet-Iranian matters, 568, 657,
828.
Guatemala (see also American republics) :
Bretton Woods agreements (1945), signature and ac-
ceptance, 36.
Cultural leader, visit to U.S., 1091.
Inter- American Indian Institute (1940), adherence, 82.
Gutt, Camille, election as Managing Director of Inter-
national Monetary Fund, 1044.
Hackworth, Green H., election as judge of International
Court of Justice, 258.
Hague, inaugural sitting of International Court of Justice
at, 757.
Haiti (see also American republics) :
Ambassador to U.S. (Bellegarde), credentials, 1050.
Cultural leader, visit to U.S., 1053.
Diplomatic relations with U.S., resumption, 682.
Government, new, description of, 682.
Treaties, agreements, etc. :
Sanitary convention (1926), as amended (1944), pro-
tocol prolonging, entry into force and text, 869.
Sanitary convention for aerial navigation (1933), as
amended (1944), protocol prolonging, entry into
force, 869.
War criminals of the Euroi)ean Axis, prosecution and
punishment of (1945), accession, 261.
Hamburg, Germany, opening of U.S. Consulate General,
399, 451.
Handler, David, article on Danubian transportation prob-
lems, 1108.
Harriman, W. Averell, resignation as U.S. Ambassador
to U.S.S.R. and appointment as Ambassador to U.K.,
306, 687.
Harvard Clubs, Associated, Boston, Mass., address by Mr.
Acheson, 1045.
Hawaii, transfer of Japanese property in to U.S., 131.
Hazard, John Newbold, designation in State Department,
180.
Health Organization, International :
Functions, 882.
Meetings, dates, 330, 476, 525, 565, 618, 655, 711, 755,
856, 884, 1076, 1111.
Hilldring, John H. :
Address on U.S. aid in economic reconstruction of
France, 674.
Appointment as Assistant Secretary of State, 369, 736.
Letter to Far Eastern Commission regarding food sup-
plies to Japan, 947.
Participant in radio broadcast, 910.
Statement on Far Eastern Commission policy on food
supplies to Japan, 756.
Hiss, Alger, participant in radio broadcast, 386.
Hitler, Adolf, plans for Norway (1940) and for Norway
and Denmark (1942), German documents concerning,
700, 936.
Hittl, Philip K., visiting professor to Near East, 1011.
1152
DEPARTMENT OF STATE BULLETIN
Hodge, Lt. Gen. John R., letter to Col. Gen. Ivan M.
Chistiakov on administration of Korea, 111.
Hodgson, Joseph V., resignation as U.S. Commissioner on
United Nations War Crimes Commission, 855.
Hoffman, L. A., articles on zones of occupation in Ger-
many, 599, &i9.
Holland, G. Kenneth, designation in State Department,
452.
Honduras, agreements :
Bretton Woods agreements (1945), signature and ac-
ceptance, 36.
War criminals of the European Axis, prosecution and
punishment of (1945), accession, 261.
Hoover, Herbert (chairman. Famine Emergency Commit-
tee) :
Address on vyorld famine crisis, 717.
Report to President on accomplishments of Committee,
897.
Visit to American republics, 958.
Horsky, Charles A., participant in radio broadcast, 250.
Horta, Fayal, Azores, closing of U.S. Consulate, 1130.
House of Representatives. Scf Cougre.ss, U.S.
Howard, John B., articles :
Inter-Allied Reparation Agency, 1063.
Paris agreement on reparation from Germany, 1023.
Howe, John, designation in State Department, 180.
Human rights, the United Nations Charter and the pro-
motion of, article by Mrs. McDiarniid, 210.
Human Rights, Commission on, 814, 855.
Humanity, crimes in Far East against, statement by Mr.
Keenan, 846.
Humelsine, Carlisle H., designation in State Department,
826.
Humphrey, Richard A., article on procurement of foreign
research materials, 22.
Hungary :
German documents on, 984.
Minister to U.S. (Szegedy-Masznk), credentials, 132.
Prime Minister Nagy, visit to U.S., 1091, 1120.
Property and gold, restitution, 1120.
U.S. Mission at Budapest, change to Legation, 352.
Hutcheson, Josepli C. (chairman of U.S. members of Anglo-
American Committee of Inquiry), letter transmitting
report of Committee to President Truman, 783.
Hutson, John B., participant in radio broadcast, 191.
Hyde, Louis K., Jr., article on U.S. trade proposals, 616.
Iceland :
Admission to United Nations, question of, 773.
Bretton Woods agreements (1945), signature and ac-
ceptance, 36.
Military facilities, U.S. proposal regarding, 773.
Surplus war property, liquidation, 350.
ILO. See International Labor Organization.
Immigration :
Address by Mr. Warren on migration policies, 213.
Displaced persons in U.S. zone in Germany, preference,
635.
Immigration and %'lsa matters, contacts with Department
of Justice regarding (D.R. 232.2), 970.
Immunity :
International Organizations Immunities Act, descrip-
tion of, 348.
United Nations Secretariat, discussion on diplomatic
immunity and taxation, 199, 276.
Importation of Swiss watches, proposed limitation on, ex-
change of memoranda, 763.
Imru, Ras H. S., credentials as Ethiopian Minister to U.S.,
1000.
Income tax, double :
France, with U.S., conversations, 451.
U.K., with U.S., supplementary protocol, 1052, 1087.
Independence, Philippine :
Preparation for, article by Mr. Mill, 980.
Proclamation ceremonies at Manila, 1051.
India :
Food crisis :
Exchange of messages between Lord Wavell and Presi-
dent Truman, 861.
Letter from Mr. Minor to Mrs. Pearl S. Buck, 1084.
Grain shipments to, U.S., 957.
Mudaliar, Sir Ramaswami, elected president of Economic
and Social Council, 90.
Opium control, quotations from statement of Govern-
ment, 239, 240.
Treaties, agreements, etc. :
Bretton Woods agreements (1945), signature and
acceptance, 36.
Bulk-sale agi-eement, preliminary, with U.S., con-
clusion, 733.
Lend-lease, reciprocal aid, and surplus property, settle-
ment of, with U.S. (1946) , signature, 733, 916.
Occupation of Japan. See BCOF.
Peace, with Siam, signature (1946), 963.
War criminals of the European Axis, prosecution and
punishment of (1945), accession, 954.
Indonesia, discussion in Security Council regarding
presence of British troops In, 199, 234, 275.
Industrial committees of ILO, 704 n.
Industrial enterprises In Manchuria, U.S. memorandum to
China and U.S.S.R., and Chinese reply, 448.
Industrial property :
International registration (1891), London revision
( 1034 ) , adherence by Luxem1)ourg, 514.
Patent interchange (1942), agreement on amendments,
with U.K., signature, 579.
Patents outside Germany, German-owned, conference on,
1112.
Protection of (1S83), London revision (1934), adher-
ence by Luxembourg. 61.
Industrial situation in Japan, SCAP report, 805.
Industries, German, post-war, action of Allied Control
Council on, 636. 681.
Industry, Polish, nationalization of, 670.
Information (.see also Radio) :
Addresses by Mr. Benton and Mr. Braden on inter-
national service, 392, 722.
Advisory group to prepare recommendations on mass
communications for UNESCO, 172.
AP and UP, attitude toward State Department's
program, 217.
Freedom of, U.S. proposal for establishment of sub-
commission in United Nations, 855.
Japan, dissemination, SCAP report, 807.
Proposals for international service, letter from Secretary
Byrnes to President Truman, 57.
Rumania, freedom of press in, U.S. protest on non-
fulfilment of assurances regarding, 1007, 1048, 1125.
Information and Cultural Affairs, International, Office of,
establishment of overseas information service, letter
from Secretary Byrnes to President Truman, 57.
Institute of Inter-American Affairs, transfer to State
Department, 685.
Institute of International Education, placement of Pan-
amanian students in U.S. institutions, 223.
Intelligence, Advisory Committee on, objectives (D.R.
18:^.5), 826.
Intelligence activities, coordination of foreign :
Directive from President Truman, 174.
N. Y. Publishers As.sociation, endorsement, 260.
Intelligence Collection and Dissemination, Office :
Functions and organization (D.R. 133.30), 827.
Russell Plan for, 930.
Intelligence Coordination and Liaison, Office:
Functions (D.R. 1.S3 20), 827.
Russell Plan for, 929.
Intelligence program. State Department :
Russell Plan for organization, 928.
Statement by Secretary Byrnes regarding lack of funds,
687.
INDEX, JANUARY TO JUNE 1946
1153
Intelligence program in Japan, SCAP report, 750.
Inter-Allied Reparation Agency :
Article by Mr. Howard, 1063.
Establishment of, 114, 115, 119.
Inter-Allied Trade Committee, establLshment proposed, 395.
Inter-American Affairs, Institute of, transfer to State
Department, remarks by Mr. Braden, 1012.
Inter-American Affairs, Office of:
Activities in information field, comments by Mr. Benton,
725.
Termination of, and transfer of certain functions to
State Department :
Executive Order 9710 : 686.
Letter from Secretary Byrnes to President Truman,
57.
Statement by President Truman, 685.
Statement by State Department, 685.
Inter-American conference for maintenance of peace and
security :
Appointment of committee to draft treaty proposals
for consideration by, 732.
Postponement, 477.
Inter-American conference of exjaerts on copyright, meet-
ings, dates, 946, 990, 1042, 1074, 1111.
Inter-American conference on problems of war and peace,
attitude of Argentina, 285.
Inter-American Educational Foundation, tran.sfer to State
Department:
Remarks by Mr. Braden, 1012.
Statement by State Department, 685.
Inter-American Indian Institute, convention for (1940),
adherence of Guatemala, 82.
Inter-American military cooperation, bill, letter of trans-
mittal from President Truman to Congress and state-
ment by Secretary Byrnes before House Foreign
Affairs Committee, 859, 1001.
Inter-American Navigation Corporation, termination,
transfer to State Department preliminary to, 685.
Inter-American policy, what it is, radio broadcast, 26.
Inter-American relations. See American republics.
Inter-American system, address by President Truman, 720.
Inter-American Transportation Corporation, termination,
transfer to State Department preliminary to, 685.
Interdepartmental Committee on Scientific and Cultural
Cooperation :
Description, 428.
Detail of U.S. jwrsonnel to other governments, article
by Mr. McGeorge, 72.
Program in American republics, report recommending
continuance, 1092.
Intergovernmental Committee on Refugees, problems, 215.
Intergovernmental commodity arrangements, article by
Mr. Phillips, 509.
International Bank for Reconstruction and Development :
Articles of agreement, status of signatures and accept-
ances, 36, 528.
Election of President (Meyer), 1044.
Executive Directors, 856.
Italian membership in, proposed, 581.
Meeting at Savannah, Boards of Governors, with Inter-
national Monetary Fund. See Savannah meeting.
Relation to employment ob.iectives, 563.
Statement by National Advisory Council on Interna-
tional Monetary and Financial Problems regarding,
3S1.
U.S. representatives, appointment, 262.
International broadcasting. See Radio broadcasts.
International Cooperative Alliance, request for member-
ship in Economic and Social Council, 126.
International Court of Justice of United Nations :
ComiMJSition of, 474.
Compulsory jurisdiction, U.S. position favorable to, 633.
Inaugural sitting, 757.
Judges, selection of, 199, 234, 258.
Location to be at The Hague, 91.
International C<jurt of Justice — Continued
Meeting, dates, 711, 755, 813, 884, 94G.
Mr. Hackworth elected as judge, 258.
Transition from Permanent Court of International Jus-
tice of League of Nations to, discussed in articles by
Dr. Reiff, 691, 739.
International Emergency Food Council to replace Com-
bined Food Board, invitation to prospective members
to meeting of Food Board, 1075.
International Health Organization, preliminary meeting of
conference on, 330, 375, 431, 525, 618, 655.
International Information and Cultural Affairs, Office of :
Divisions, 43, 44, 45.
Establishment and' functions, 37, 42, 57.
International information program, memorandum by Mr.
Macmahon, 37.
International Labor Organization :
Committees :
Coal Mining Committee, 704.
International Development Works Committee, 169,
219, 245.
Iron and Steel, Industrial Committee, 711, 712, 755,
813
Metal Trades Committee, 711, 755, 813, 856, 884.
Conference, 2Sth maritime session:
Meeting, dates, 946, 990, 1042, 1074, 1111.
U.S. Delegation, listed, 993.
Conference of American states members (3d) :
Meeting, dates, 476, 525, 565, 61S, 711.
U. S. Delegation, listed, 566.
Conference of delegates on constitutional questions, 35,
169, 290.
Constitution of, amendment proposals, article by Mr.
Wiesman, 1028.
Exemptions and immunities, 348.
Functions, table listing, 882.
Governing Body:
Meeting (98th), dates, 884, 946.
U.S. representative on, 713, 948.
Scope in relation to functions of Economic and Employ-
ment Commission, 799.
Transfer from League of Nations to United Nations,
discussed in articles by Dr. Reiff, 691, 739.
International law, U.S. policy in maintaining and develop-
ing, letter from Secretary Byrnes to president of
American Society of International Law (Coudert),
758.
International Monetary and Financial Problems, National
Advisory Council on, 380, 381.
International Monetary Fund :
Articles of agreement, status of signatures and accep-
tances, 36, 528.
Executive Directors, 856.
Italian membership in, proposed, 581.
Managing Director (Gutt), election, 1044.
Meeting at Savannah, Boards of Governors, with Inter-
national Monetary Fund. See Savannah meeting.
Relation to employment objectives, 563.
U.S. representatives, appointment, 262.
International Office of Public Health, 655, 711, 755, 813, 856,
884.
International Organization Affairs, Division of:
Functions (D.R. 118.11), 1094.
Responsibilities under International Organizations Im-
munities Act (D.R. 240.1), 1018, 1019.
International organizations, functions, table listing, 882.
International Organizations Immunities Act:
Provisions of, 348.
Responsibilities under (D.R. 240.1), 1018.
International Sugar Council, meeting, 219.
International Technical Committee of Aerial Legal Ex-
perts. See CITEJA,
International Trade Organization, proposed, 383, 403, 431,
616, 631, 647.
1154
DEPARTMENT OF STATE BULLETIN
Inverchapel, Lord, credentials as British Ambassador to
U.S., ior.0.
Investigations, Division of, functions and organization
(D. R. 123.6), 180.
Iran :
Blind censorship of foreign newspapermen :
Report of, 731.
U.S. views on, 772.
Bretton Woods agreements (1945), signature and ac-
ceptance, 36.
Dispute with U.S.S.R. See Iranian case under Security
Council.
Opium production, limitation, 239.
U.S. Ambassador (Allen), appointment, 828.
Iraq :
Bretton Woods argeements (1945), signature and ac-
ceptance, 36.
U.S. Minister (Pinkerton), appointment, 828.
Ireland, closing of U.S. Consulate at Foynes and establish-
ment at Limerick, 872.
Italy :
Armistice with Allies, revised, recommendation to Coun-
cil of Foreign Ministers regarding, statement by Sec-
retary Byrnes, 891.
Boundary, Italian-Yugoslav :
Commission appointed to recommend, 391.
Views of Council of Foreign Ministers on, 950.
Civil aviation contract with TWA, U.S. attitude toward,
90S.
Colonies, views o^Council of Foreign Ministers on, 950.
Constituent Assembly, elections, 299.
Food. See Food.
Interview between Reich Foreign Minister and Musso-
lini (19-11). German documents on, 1103.
Membership in World Fund and Bank, proposed, 581.
Military strength, German propaganda regarding, 313.
Property belonging to nationals of United Nations,
restoration, 817.
Relations with Spanish Government, texts of documents,
413.
Reparation, views of Council of Foreign Ministers on,
mo.
Resumption of private trade with, 261.
U.S. Consulate at Turin, opening, 224, 1054.
Iron and Steel, Industrial Committee of ILO, announce-
ment of U.S. delegation, 712.
Iron and steel industry, Japanese, reparations-removal
policy of Far Eastern Commission, 1074.
ITO. See International Trade Organization.
Jackson, C. D., participant in radio broadcast, 11.
Japan (.see nlso Far East; Far Eastern Commission) :
Assets in Manchuria, disposition, 364.
Axis nationals In, communications regarding, 374.
Consular premises and property in Hawaii, transfer to
U.S. by Swedish official, 131.
Declaration of war by Soviet Union, conditions govern-
ing, 282.
Democracy, U.S. radio broadcast, 581.
Diet, new, composition, 1072.
Elections in, communications between Far Eastern Com-
mission and General MacArthur regarding, 639.
Emperor, attitude of Far Eastern Commission on tour
of, 1(H2.
Food for citizens of, policy regarding, 712, 756, 897, 947.
Mandated islands, U.S. policy on, 113.
Materials for export, supply, 395.
Military strength, German propaganda regarding, 313,
315.
National City Bank of New York, reopening of branch
in Tokyo, 642.
Non-military activities in, report of General Headquar-
ters, SCAP, 749, 805, 915, 1067.
Occupation policies. Allied, for fishing and aquatic in-
dustries, 346.
Japan — Continued
Raw materials, U.S. program for supplying, 173.
Refugees in Japan, Far Eastern Commission policy re-
garding, 1043.
Refugees in U.S., release of property in U.S., 1011.
Relations with Germany (1939-41), texts of documents,
1038.
Reparation. See Reparation.
Repatriation of citizens in British areas, visit of Ad-
miral Leahy to U.K. regarding, 892.
SCAP. See Supreme Commander for Allied Powers.
Textile mission, international, report, 178, 1009.
Trade, control and regulation, 394.
Treaties, agreements, etc. :
Disarmament and demilitarization of, draft treaty
on, 1113.
Kurile Islands, agreement at Yalta regarding, 189,
190, 282.
Occupation to be participated in by BCOF, agreement
between TT.S. and Australia, summary, 220.
Sakhalin, agreement at Yalta regarding, 189, 190, 282.
U.S. education mission and report, 345, 641, 807.
Digest of report, 769.
Letters of transmittal, 767, 768.
Statement by General MacArthur, 769.
War criminals, trial of, 361, 376, 618, 751, 809, 846, 847.
Jessup, Joe L., designation in State Department, 351.
Jewish National Home in Palestine, 957.
Jews in Europe (see also Anglo-American Committee of
Inquiry; Displaced persons) :
German directives and propaganda regarding, 311, 813,
315, 365, 465.
Retribution for German crimes against, statement by
President Truman, 369.
Johnson, Herschel V., appointment as U.S. Deputy Repre-
sentative on Security Council, 754.
Johnson, Nelson T., Secretary General of Far Eastern
Commission, election, 376.
Joint Chiefs of Staff in Australia, organization, 221.
Journalism, awards for Negroes, Washington, address by
Mr. Braden, 392.
Judson, Harold, participant In radio broadcast, 250.
Julian March. See Venezia Giulia.
Keenan, Joseph B. (counsel for prosecution of Far East-
ern war criminals), statement on the indictment, 846.
Kefauver, Grayson N., death. 39.
Kelly, Helen G., report on Bermuda telecommunications
conference, 59.
Kindleberger, Charles P., designation in State Depart-
ment, 826.
King, W. L. Mackenzie (Prime Minister of Canada),
joint statement with President Truman and Prime
Minister Attlee on continuing Combined Food Board
operations, 861.
Kirk, Alan G., appointment as U.S. Ambassador to Bel-
gium and U.S. Minister to Luxembourg, 224.
Kleinwaechter, Ludwig, appointment as Austrian repre-
sentative in U.S., 177.
Korea (see also Far East) :
Administrative coordination by U.S. and Soviet com-
mands, 111.
Bunce, Arthur C, appointment as adviser to General
Hodge, U.S.A., 224.
Cultural leaders visit U.S., 812.
Nationals in .Japan, repatriation. Far Eastern Commis-
sion policy regarding, 1044.
Needs in, examination by U.S., 449.
Non-military activities in, report of General Headquar-
ters, SCAP, 749, 805, 915.
Radio broadcast on, 104.
U.S. policy, statements by President Truman and De-
partment of State, 139, 155, 449, 644.
Kosanovic, Sava N., appointment as Yugoslav Ambas-
sador to U.S., 728.
INDEX, JANUARY TO JUNE 1946
1155
Kurile Islands :
Agreement at Yalta, official statements regarding, 189,
190.
Text of agreement, 282.
U.S. air bases, question of, 190.
Kuznets, Simon S., appointment as Economic Adviser to
China, 961.
Labor. See American Federation of Labor ; International
Labor Organization ; World Federation of Trade
Unions.
Labouisse, Henry K., Jr., designation in State Depart-
ment, 351.
Labrador, liquidation of surplus property in, 350.
La Guardia, Fiorello H. :
Director General of UNRRA, appointment, 619.
World famine crisis, address, 716.
Lange, Oskar (Polish Ambassador), letter to —
Acting Secretary Acheson, on Export-Import Bank loan
to Poland, 761.
Secretary Byrnes, on :
Polish attitude regarding U.S. trade with Philippines,
773.
Purpose of referendum in connection with Polish
elections, 762.
Security Council, on Franco regime in Spain, 660.
Langer, William L., appointment as Special Assistant to
tlie Secretary, 826.
Lanier, Raphael O'Hara, appointment as U.S. Minister
to Liberia, 352. 450.
Laparra, Arnauld (France), statement on Greek elec-
tions, 582.
Latchford, Stephen, article on private International air
law, 835.
Leach, Irene B., death, 218.
League of Nations, transfer of assets to United Nations,
91, 200, 691, 739, 743, 744, 747.
League of Women Voters, St. Louis, Mo., address by Mr.
Acheson, 317.
Leah.v, Fleet Admiral William D., visit to U.K., 892.
Lebanon :
Near East Foundation, work, 508.
Security Council, complaint to on presence of British
and French troops in, 234, 275.
Legislation. See Congress, U.S.
Lehman, Herbert H., resignation as Director General of
UNRRA, 619.
Lend-lease :
Functions relating to maintenance of accounts and fiscal
records, transfer to Treasury Department (Ex. Or.
9726), 959.
Report of operations (21st and 22d), letters of trans-
mittal from President Truman to Congress, 223, 1091.
Lend lease, settlement agreements :
Statement by President Truman, 139.
U.S. agreements with : Australia, 1118 ; Canada, 683 ;
China, 1118; France, 997; India, 733, 916; Turkey,
868; U.K., 580.
Liberated areas :
Austria, U.S. recognition of government, 81, 339.
Shipping agreement for transportation of supplies to,
488.
UNRRA shipments to (1945), 224.
Wheat shipments to, 151, 152, 360, 716, 717.
Liberia, appointment of U.S. Minister (Lanier), 450.
Liberty ships, U.S., transportation of grain from U.S.S.R.
to France, 730.
Lie, Trygve :
Addresses and statements to Security Council. See
Security Council.
Arrival in U.S., 529.
Invitation to atomic-bomb tests, 1130.
Secretary-General of United Nations, appointment, 147,
234.
Limerick, Ireland, establishment of U.S. Consulate, 872.
Livestock in Caribbean area, efforts by U.S. and U.K. to
increase production, 130.
Load line convention, international, suspension during
war emergency, proclamation revoking, 132.
Loans :
Austrian, arrangement with U.S., 818.
Export-Import Bank, table, 384.
Transfer of League of Nations - sponsored loans to
United Nations, question discussed in articles bv Dr.
Reiff, 698, 740.
U.S. policy regarding, messages of President Truman to
Congress, and statement by National Advisory
Council on International Monetary and Financial
Problems, 380, 381.
Loot, transfer of gold to neutral countries from Germany,
resolution of Paris Conference on Reparation, 121.
Los Angeles, Calif., address by Mr. Benton, 408.
Lubin, Isador, resignation from Allied Commission on
Reparations, 224.
Luthringer, George P., designation in State Department,
1097.
Luxembourg :
Treaties, agreements, etc. :
Bretton Woods agreements (1945), signature and
acceptance, 36.
Industrial property, protection of (1883), London
revision (1934), adherence, 61.
Reparation from Germany, draft, 114 n.
Sanitary convention (1926), as amended (1944), proto-
col prolonging, entry into foii^ and text, 869.
Sanitary convention for aerial navigation (1933), as
amended (1944), protocol prolonging, entry into
force, 869.
Trade marks, international registration (1891),
London revision (1934), adherence, 514.
War criminals of the European Axis, prosecution and
punishment of (1945), accession, 261.
U.S. Minister (Kirk), appointment, 224.
Lyon, Frederick B., designation in State Department, 969.
MacArtbur, Gen. Douglas (see also Supreme Commander
for the Allied Powers) :
Addresses, statements, etc. :
BCOF in Japan, 221.
Japanese elections, 1067.
U.S. education mission to Japan, 769.
Cooperation with Far Eastern Commission, 291, 370, 373.
639.
Japanese trade program, responsibility for, 394.
Jurisdiction in Pacific, extent, comments by Secretary
Byrnes, 449.
Letter of tribute from Secretary Byrnes, 449.
Proclamation establishing International Military Tribu-
nal for the Far East, 361.
Staff in Tokyo, experts to join, 10.
Machado HernSndez, Alfredo, credentials as Venezuelan
Ambassador to U.S., 730.
MacLeish, Archibald, statement on UNESCO, 629.
Macmahon, Arthur W., memorandum on international in-
formation program, 37.
Macy, Noel, excerpts from memorandum on meeting with
AP representatives, 93.
Madow, William G., visiting professor to Brazil, 351.
Mail on U.S. foreign policy, analysis, 350.
Mails :
Parcel-post service to U.S. zone in Germany, 1012.
Postal service to Austria and Germany, resumption, 40,
490, 635.
Malaya, purchase of rubber by U.S., 644.
Malmo, Sweden, closing of U.S. Consulate, 400, 1130.
Mandos, Brazil, closing of U.S. Vice Consulate, 1054.
JIanchuria :
Industrial enterprises, question of control, 448.
Japanese assets in, disposition, 3M.
1156
DEPARTMENT OF STATE BULLETIN
Mandated islands (Japanese), U.S. policy on, 113.
Mandatory in Palestine, recommendation regarding, 785.
Manila, proclamation ceremonies of Philippine independ-
ence day at, 1051.
Manhattan Project, 668.
Mann, Thomas C., designation in State Department, 1097.
Maps and charts :
British loan, 515.
Japanese elections, extent of geographic coverage, 1069.
Loans authorized by Export-Import Bank, 384.
Port Arthur Naval Base Area as provided in Sino-Soviet
treaty (1945), 202.
SCAP, administrative areas of, 804.
Soviet-Polish state boundary, 342.
Marine Perch (ship), repatriation of German nationals In
Spain, 1011.
Maritime. See Shipping.
Maritime Authority, United. See United Maritime Au-
thority.
Marshall, Gen. George C, remarks on U.S. assistance to
China, 484.
Martin, Edwin M., participant in radio broadcast, 104.
Martin, Haywood P., designation in State Department, 826.
Master of a vessel, consular services relating to entry and
clearance, inter-offioe transfer of functions, 83.
Material, classified, sale of, clearance processes for, 821.
Matlock, Clifford C, designation in State Department, 1097.
McCabe, Thomas B. (Foreign Liquidation Commissioner),
report to Congress on sale of surplus property abroad,
820.
McCormack, Alfred, resignation as Special Assistant to
Secretary, letter to and reply from Acting Secretary
Acheson, texts, 778.
McCoy, Maj. Gen. Frank R., election as chairman of Far
Eastern Commission, 376.
McDermott, Michael J., statement regarding Japanese
assets in Manchuria, 364.
McDiarmid, Alice M., article on the United Nations Charter
and promotion of human rights, 210.
McGeorge, Henry H., article on detail of U.S. personnel
to other governments, 72.
McGhee, George C, designation in State Department, 351.
McLean, Robert (President of Board of Directors of Asso-
ciated Press), 92, 04.
McNarney, Gen. Joseph T., commendation for part in Ger-
man industry settlement, 681.
Medal for Merit, award to Foreign Service officers, 499.
Meetings, calendar of. See name of organization or con-
ference.
Memorandum on the post-war international information
program of the U.S., by Dr. Macmahon, publication of,
37.
Merchant Marine Commission, Tripartite, report on dis-
posal of German merchant fleet, 445.
Messersmith, George S., appointment as U.S. Ambassador
to Argentina, 687.
Metal Trades Committee of ILO, 711, 755, 813, 856, 884.
Mexico (see also American republics) :
Arms and ammunition shipments by U.S. firms, investi-
gation of charges of, 39.
Cultural leader, visit to U.S., 687.
Treaties, agreements, etc. :
Air-transport agreement, with U.S., discussions re-
garding, 1112.
Brettoii WiMids agreements (1945), signature and ac-
ceptance, 36.
North American regional broadcasting, interim agree-
ment, signature, 376.
U.S. Ambassador (Thurston), appointment, 971.
U.S. Vice Consulate at Tapachula, closing, 1130.
Meyer, Eugene, election as president of International Bank
for Reconstruction and Development, 1044.
Migration policies and world economy, address by Mr.
Warren, 213.
Mikhailovich, Gen. Draza:
U.S. requests to submit testimony in behalf of, 634, 909.
Yugoslav denial of U.S. requests, 669.
Military aid to China, remarks by Mr. Acheson, 1115.
Military-aviation mission, with Bolivia (1941), renewal,
83.
Military cooperation, inter-American, bill, letter of trans-
mittal from President Truman to Congress and state-
ment by Secretary Byrnes before House Foreign
Affairs Committee, 859, 1001.
Military facilities in Iceland, U.S. proposals regarding,
773.
Military Government, U.S. zone (in Germany), Office of,
relation to State-War-Navy Coordinating Committee,
discussed in radio broadcast, 914.
Military mission agreement, with Venezuela, 1050.
Military movement of U.S.S.R. toward Iran, reported, 483.
Military organizations in Germany and Japan, quadri-
partite draft treaties to disarm and disband, 815, 1113.
Military Staff Committee of the United Nations. See
United Nations.
Military strength, U.S., relation to United Nations and
world peace, address by Secretary Byrnes, 481.
Military training, discussed by Secretary Byrnes, 357, 482.
Military Tribunal, International, for the Far East :
Charter and proclamation establishing, 361, 618.
Charter, changes in text, 890.
Mill, Edward W., articles:
Philippine foreign affairs training program, 148.
Philippines prepares for independence, 980.
Miller, Frieda, Miss (Department of Labor), appointment
as U.S. Representative on Governing Body of ILO, 948.
Mining. See Coal.
Minor, Harold B., letter to Mrs. Pearl S. Buck (chairman,
India Famine Emergency Committee) regarding U.S.
food shipments to India, 1084.
Missions, military, accredited to Allied Control Council by
several governments, 113.
Missions, U.S. :
Agricultural, to China and the Philippines, 1054.
Greece, to observe elections, and revision of electoral
lists, 297, 1128.
Military, to Venezuela, 1050.
Military aviation, to Bolivia, 83.
Missouri (ship), good-will visit to Greece, 731.
Molotov, Vyacheslav M. (U.S.S.R.), exchange of notes with
Wang Shih-chieh regarding friendship and alliance
treaty between U.S.S.R. and China, 204.
Monetary agreements, U.K. with Czechoslovakia, Nether-
lands, and Norway, 81.
Monetary Fund, International. See International Mone-
tary Fund.
Mongolia, treaties, agreements, etc. :
Economic and cultural collaboration, with U.S.S.R.,
text, 968.
Friendship and mutual assistance, with U.S.S.R., text,
968.
Status quo of Mongolian People's Republic guaranteed
in Yalta agreement, 282.
Monroe Doctrine, present-day effectiveness, 295.
Monsma, George N., article on ex-Proclaimed List nationals
and U.S. foreign trade, 875.
Morgan, Stokeley W., resignation from State Department,
969.
Morocco, elevation of U.S. Consular office at Casablanca
to rank of Consulate General, 872.
Morris, Leland B., appointment to head U.S. Section of
Allied Mission to Observe Revision of Greek Electoral
Lists, 1128.
Motion Picture Section, Division of Commercial Policy,
functions (D.R. 131.24), 1096.
Motion pictures, U.S., exhibition in France, understanding
regarding, text, 999.
Movement Coordinating Committee. See Export Control
Committee.
INDEX, JANUARY TO JUNE 1946
1157
Mudaliar, Sir Ramaswami, election as president, Economic
and Social Council, OO.
Jlukden, C'liiua, opening of U.S. Consulate General, 687.
Munich, Germany, opening of U.S. Consulate and U.S.
Consulate General, 399, 544.
Munitions plants in Japan, privately owned, reparations
removal policy of Far Eastern Commission regarding,
1111.
Mutual aid. See Lend lease.
Mutual aid and friendship, treaty between Poland and
Yugoslavia, text, 919.
Mutual assistance, American republics, plans for, 287, 667,
732.
Myers, Denys P., notes on composition of organs, commis-
sions, and committees of the United Nations, 467.
Nagy, Ferenc (Hungarian Prime Minister), visit to U.S.,
1091, 1120.
Nanking, China, opening of U.S. combined office, S28.
Nansen passports, renewal, question of, discussed in letters
between Senator Vandeuberg and Mr. Achesou, 1003.
NARBA. See North American regional broadcasting
agreement.
Narcotic Drugs, United Nations Commission on, appoint-
ment of U.S. representative (Anslinger), 1052.
Narcotics, limitation of opium production, U.S.-U.K. notes
on, 237.
National Advisory Council on International Monetary and
Financial Problems, 380, 381.
National Archives, liaison with State Department (D.R.
232.1), 969.
National City Bank of New York, Tokyo branch, reopen-
ing, 642.
National Democratic Club, New York, N.Y., address by
Mr. Braden, 535.
National Farm Institute, Des Moines, Iowa, address by
Mr. Clayton, excerpts, 271.
National Socialist ideology in the New World, address by
Mr. Braden, 101.
National War College, 259.
Navigation laws. See Transport and Communications,
Office of.
Navy Department :
Air-navigation facilities abroad, functions relating to,
transfer to Department of Commerce (Ex. Or.
9709), 684.
Petroleum Facilities Coordinating Committee, member-
ship on, 3.
State-War-Navy Coordinating Committee, 734, 914,
1132.
Neal, Jack D., designation in State Department, 969.
Near East :
Cultural relations with, article by Mrs. Franck, 503, 608.
Jewish and Arab leaders in Palestine, consultation with,
proposed, 917, 956.
League of Arab States, discussed in article by Mr. Allen,
924.
Loans authorized by Export-Import Bank, table, 385.
Trans-Jordan, status of and U.S. attitude on recognition
of, letter from Secretary Byrnes to Senator Myers,
765.
UNRRA mission to, 960.
U.S. Agricultural Mis.sion to, 348.
View of Arab countries on Anglo-American Committee
of Inquiry report on Palestine, U.S. reply to, 917.
Visiting professor from U.S., 1011.
Near East Foundation, activities, 508.
Near Eastern route service conference, meeting at Cairo,
655, 711, 755.
Netherlands :
British troops in Indonesia, attitude toward, 275.
Membership in Caribbean Commission, 36, 292, 331, 332,
333.
Netherlands — Continued
Treaties, agreements, etc. :
Bretton Woods agreements (1945), signature and ac-
ceptance, 36.
Monetary agreement with U.K., 81.
Reparation from Germany, draft, 114 u.
Rubber, purchase from Par East, bilateral, with U.S.,
1119.
War criminals of the European Axis, prosecution and
punishment of (1945), accession, 261.
Whaling, regulation of, agreement (1937) and proto-
col (1938), 347.
U.S. and other foreign property in, instructions for filing
claims, 729, 1083.
Visit of editors to U.S., 398.
Neutral governments, German assets and gold in, resolu-
tions of Paris Conference on Reparation respecting,
121.
Neutral nationals in Japan, Far Eastern Commission policy
regarding, 1043.
New York Publishers Association, endorsement of State
Department information program abroad, 260.
New York University Club, address by Mr. Braden, 101.
Newfoundland :
Liquidation of surplus property in, 350.
North American regional broadcasting, interim agree-
ment, signature by U.K. on behalf of, 376.
Newspaper Editors, American Society of, Washington, ad-
dress by Mr. Benton, 722.
Newspapermen. See Press.
Newspaperwomen's Club, New York, N.Y., address by Mr.
Benton, 574.
New Zealand :
Berendsen, Sir Carl, remarks before Far Eastern Com-
mission regarding U.S. food shipments to Japan,
712.
Cereal requirements, 899.
Treaties, agreements, etc. :
Bermuda telecommunications agreement (1945), ac-
ceptance, with reservation, 714.
Occupation of Japan. See BCOF.
Sanitary convention (1926), as amended (1944), pro-
tocol prolonging, signature, 869.
Sanitary convention for aerial navigation (1983), as
amended (1944), protocol prolonging, signature,
869.
War criminals of the European Axis, prosecution and
punishment of (1945), accession, 261.
Nicaragua {see also American republics), treaties, agree-
ments, etc. :
Bretton Woods agreements (1945), signature and ac-
ceptance, 528.
Civil-aviation agreements : air transit, air transport,
and interim (1944), acceptance, 171.
Civil-aviation convention (1944), ratification, 171.
Sanitary convention (1926), as amended (1944), proto-
col prolonging, entry into force and text, 869.
Sanitary convention for aerial navigation (1933), as
amended (1944), protocol prolonging, entry into
force, 869.
Nixon, Russell, statement criticizing protection of German
external assets, 76.
North America, German propaganda regarding, 314, 368.
North American regional broadcasting agreement, 376, 379.
North American regional broadcasting engineering con-
ference (2d) :
Address by Mr. de Wolf, 379.
Dates of meeting, 170, 219, 290, 330, 375, 379.
Interim agreement, signature, 376.
Standard-band broadcasting, 377, 379, 400.
North American Regional Engineering Committee:
Establishment, 377.
F\inctions, 379.
North American wildlife conference, 219.
1158
DEPARTMENT OF STATE BULLETIN
North Atlantic route service conference:
Announcement, 431.
Meeting at Dublin, 431, 476, 525, 565.
Norway :
Hitler's plans for, German documents on, 699, 936.
Treaties, agreements, etc. :
Bretton Woods agreements (1945), signature and ac-
ceptance, 36.
Monetary agreement, with U.K., 81.
War criminals of the European Axis, prosecution and
punishment of (1945), accession, 261.
U.S. Ambassador (Bay), appointment, 1054.
Novikov, Nikolai Vasilievich, credentials as Soviet Am-
bassador to U.S., 1050.
Niirnberg trial, 250, 369.
Occupied areas (see also Austria; Germany; Japan;
Korea ; Venezia Giulia ) :
Defined, 734.
Poland, damages caused by German occupation, Polish-
Soviet agreement and protocol (1945), texts, 343.
Problems of, mentioned in President Truman's message
to Congress, 140.
U.S. policy in. State Department directive concerning,
734.
Occupied Areas, Assistant Secretary of State for, func-
tions :
Departmental regulation (134.1), 1132.
Relation to SWNCC, 734.
Office of International Information and Cultural Affairs,
scope, 614.
Office of Price Administration, regulation on bread, dis-
cussed in article by Mr. Stillwell, 834.
Office of Under Secretary of State for Economic Affairs,
establishment, action by House Committee on For-
eign Affairs on bill, 1093.
Office of War Information, activities, comments by Mr.
Benton, 725.
Office of War Mobilization and Reconversion, resolution
by Advisory Board endorsing British loan, and Presi-
dent Truman's statement, 436.
OIAA. See Inter-American Affairs, Office of.
Oil, article by Mr. Robertson, 3.
Oil corporation, Soviet-Iranian, discussed in letters to
Security Council, 659.
OPA. See Office of Price Administration.
"Operation Crossroads". See Atomic-bomb tests.
Opium, notes between U.S. and U.K. regarding limitation
of production, 237.
Oran, Algeria, closing of U.S. Consulate, 1130.
Orr, Sir John Boyd (Director General of FAO), statement
at special meeting of FAO on urgent food problems,
949.
Ospina Pi^rez, Mariano (President-elect of Colombia), visit
to U.S., 892.
Outer Mongolia :
Sino-Soviet notes regarding, 204.
Status quo guaranteed in treaty, 282.
Overseas Press Club, New York, N.Y., address by Secretary
Byrnes, 355.
Palestine, immigration of Jews and displaced persons to.
See Anglo-American Committee of Inquiry ; Cabinet
Committee.
Pan American Highway, description and status, 125.
Pan American Union, Washington :
Address by President Truman before Governing Board,
720.
Exemptions and immunities, 348.
Mutual-assistance treaty among American republics, ap-
pointment of committee to draft document for con-
sideration by conference, 732.
Social Service, first Pan American congress of, report, 21.
Panama (see also American republics) :
Treaties, agreements, etc. :
Bretton Woods agreements (1945), signature and
acceptance, 528.
Cooperative fellowship program with U.S., 223.
War criminals of the European Axis, prosecution and
punishment of (1945), 261.
Visiting professor from U.S., 962.
"Papers Relating to the P'oreign Relations of the United
States, the Paris Peace Conference, 1919", publica-
tion of vol. VII : 918.
Paraguay (see also American republics) :
Ambassador to U.S. (Ayala), credentials, 730.
Cultural leader, visit to U.S., 962.
Treaties, agreements, etc. :
Bretton Woods agreements (1945), signature and ac-
ceptance, 36.
Civil-aviation convention (1944), ratification, 171.
Parcel-post service to U.S. zone in Germany, 1012.
Paris agreement on reparation from Germany, article by
Mr. Howard, 1023.
Paris Conference on Reparation, agreement (draft text),
final act, and resolutions, 114.
Paris Peace Conference, 1919, publication of vol. VII in
"Foreign Relations of the United States" series, 918.
Passenger Shipping Committee, State Department, com-
position and functions (D.E. 183.7), 970.
Passports :
Austria, removal of U.S. ban against exit permits, 73.
Requirements, change, 395.
Pasvolsky, Leo, resignation, 499.
Patents, German-owned, outside Germany, conference on,
U.S. delegation, listed, 1112.
Patents («ee also Industrial property), interchange agree-
ment (1942), with U.K., amendments, 579.
Paul, Randolph, Special Assistant to the President, to
conduct negotiations on German external assets, 374,
1077.
Paul-Boncour, J. (French Delegate to the General As-
sembly), 89.
Pauley, Edwin W., appointment to study Far Eastern
economic problems, 821.
Pawley, William D., appointment as U.S. Ambassador to
Brazil, 828.
Peace :
Address by : Mr. Acheson, 893 ; Mr. Braden, 535 ; Presi-
dent Truman, 622.
Council of Foreign Ministers to meet in Paris July 15,
plans, 112, 891, 950, 952.
Crimes in Far East against, statement by Mr. Keenan,
846.
Trade, relation to, statements by Secretary Byrnes and
Mr. Clayton, 677, 892.
Peace treaties, Siam with :
Australia, text, 966.
U.K. and India, text, 963.
Peffer, Nathaniel, visiting professor to China, 1092.
Peiping, China, closing of U.S. Consulate and opening of
Embassy, 46.
Penicillin agreement, with U.K., 451.
People's Republic of Mongolia, Sino-Soviet notes regard-
ing, 204.
Permits, exit, for Austrian refugees, 73.
Peron, Juan D., charges against U.S. Embassy in Argen-
tine elections, U. S. attitude, 222.
Peru (se« also American republics) :
Bretton Woods agreements (1945), signature and ac-
ceptance, 36.
Civil-aviation convention (1944), ratification, 715.
Cultural leader, visit to U.S., 777.
Suffrage for women, question of, 249.
U.S. Ambassador (Cooper), appointment, 828.
Petersen, Howard C. (Assistant Secretary of War), par-
ticipant in State Department radio broadcast, 910.
INDEX, JANUARY TO JUNE 1946
1159
Petroleum Facilities Coordinating Committee, article by
Mr. Robertson, 3.
Peurifoy, Jolin E., designation in State Department, 826.
Phelps, Vernon L., designation in State Department, 826.
Philippines :
Articles by Mr. Mill, 148, 980.
Collaborators with enemy in, disposition of, statement
by President Truman, 534.
Foreign affairs, training program in U.S., 148, 298.
Foreign Relations, Office of, 149.
Independence, proclamation ceremonies at Manila, 1051.
Rehabilitation and recovery of, under H.R. 5856 and
S. 1610, statement by President Truman, 822.
Roxas, Gen. Manuel, visit to U.S., 867.
Tariff policy, U.S., notes between U.S. and Bolivian
Governments regarding, 1()49.
Trade with U.S., Polish attitude toward, 773.
Treaties, agreements, etc. :
Bretton Woods agreements (1945), signature and ac-
ceptance, 36.
Civil-aviation agreements: air transit and interim
(1944), acceptance, 715.
Friendship, commerce and consular rights (1931 ) , U.S.
and Poland, Polish attitude toward Philippine
trade, 773 .
U.S. agricultural mission to, 1054.
War Damage Commission, appointment of U.S. mem-
bers, 955.
Phillips, William T., articles :
American trade proposals, 509.
Rubber in relation to world economy, 932.
PICAO. See Provisional International Civil Aviation Or-
ganization.
Pinkerton, Lowell C, appointment as U.S. Minister to
Iraq, 828.
Plank, Ellsworth H., article on U.S. trade proposals, 561.
Poland :
Area of Germany administered by, 602.
Boundaries, 341.
British troops in Indonesia, attitude toward, 275.
Claims for war damage, by U.S. citizens, procedure for
filing, 1083.
Displaced persons. See Displaced persons.
Elections :
Plans for, note from Polish Ambassador, 762.
Relation of Export-Import loan to, 761.
Export-Import Bank, loan by, exchange of notes between
Acting Secretary Acheson and Polish Ambassador
(Lange), 761.
Franco regime in Spain, recommendation for considera-
tion by Security Council, 660.
Grain scarcity in, letter from President of National
Council of the Homeland and reply of President
Truman, 542.
Opening of U.S. Consular offices at Gdansk and at Poz-
nan, 263, 1054.
Political murders, alleged reign of, 209.
Relations with Germany (1940), 462.
Treaties, agreements, etc. :
Boundaries, with U.S.S.R., text (1945), 341.
Bretton Woods agreements (1945), signature and ac-
ceptance, 36, 528.
Damages from Germany, agreement and protocol, with
U.S.S.B., (1945), texts, 343.
Friendship and alliance, with U.S.S.R. (1945), text,
340.
Friendship and mutual aid, with Yugoslavia, text,
919.
Friendship, commerce and consular rights (1931),
U.S. and Poland, Polish attitude toward Philip-
pine trade, 773.
War criminals of European Axis, prosecution and
punishment (1945), accession, 261.
U.S. property owners in, compensation to, 670.
U.S. trade with Philippines, attitude toward, 773.
Policy Information Services, functions (D.R. 183.4), 970.
Political activities, internal, in Japan :
Remarks by Mr. Atcheson on SCAP policy, 915.
SCAP report, 749.
Political parties in Germany, 549.
Port Arthur, Sino-Soviet agreement regarding, 204, 205.
Port Arthur Naval Base Area (map), 202.
Porter, Paul (administrator. Office of Price Adminis-
tration) :
Letter to State Department on status of U.S. short-
wave broadcasting, 904.
Participant in radio broadcast, 156.
Portugal :
Airports in Azores, agreement for transit use by U.S.
(1944), text and expiry, 1051, 1080.
Closing of U.S. Consulate at Beira, 132.
Postal convention (1939), adherence by Czechoslovakia,
350.
Postal service, resumption :
U.S. and Austria, 40.
U.S. and Germany, 490, 635.
Potter, Margaret, article on U.S. trade proijosals, 403.
I'oznan, Poland, opening of U.S. Consulate, 263.
Prencinradio, termination, transfer to State Department
preliminary to, 685.
Preparatory Commission of UNESCO. See UNESCO.
Preparatory Commission of United Nations. See United
Nations.
Prescott, Col. Brainard E., participant in radio broad-
cast, 104.
President, U.S. See Truman, Harry S.
President's Cabinet Committee on Palestine and Related
Problems. See Cabinet Committee.
Press (see also Information) :
American press associations, address by Mr. Benton, 574.
Associated Press. See Associated Press.
Facilities requested by Acting Secretary Acheson of
various governments receiving UNRRA aid, 131.
Newspapermen :
Dutch, visit to U.S., 398.
Finnish, visit to U.S., 339.
Foreign, as guests of Virginia Press Association,
plan, 260.
United Press. See United Press.
U.S. censorship in Moscow and Tehran, 731, 772.
Price control and rationing in Japan, SCAP report, 806.
Prisoners of war and civilian internees. See Displaced
persons ; Repatriation.
Proclaimed List of Certain Blocked Nationals. See
Blocked Nationals.
Proclamations :
Alien enemies, removal from U.S., 732.
Load line convention, revoking suspension during war
emergency, 132.
Propaganda, German :
Article by Mr. Bradford, 278.
Excerpts from official German publications, 311, 365.
Property (see also Surplus war property) :
German. See Germany.
German and Japanese refugees in U.S., 1011.
Hungarian, in U.S. custody, 1120.
Japanese, in Manchuria, 364.
United Nations nationals, in Italy, 817.
U.S., in: Belgium, 634; Bulgaria, 446; Denmark, 1083;
Italy, 817 ; Netherlands, 729, 10S3 ; Poland, 670.
Protocol, Division of, responsibilities under International
Organizations Immunities Act (D.R. 121.10 and 240.1),
1018, 1019.
Provisional International Civil Aviation Organization :
Conferences :
Annual assembly (1st), Montreal:
Meetings, listed, 655, 711, 755, 813, 856, 884, 946,
990, 1042, 1074.
U.S. Delegation, 886.
1160
DEPARTMENT OF STATE BULLETIN
Provisional International Civil Aviation Organization-
Conferences — Continued
European and Mediterranean air route services con
ference, Paris, 525, 5&5, 61S, 655, 711, 713, 755,
813, 856, 884, 946, 9flO, 1(M2, 1074.
Near Eastern route service conference, Cairo, 655, 711
755.
North Atlantic route service conference, Dublin, 431,
476, 525, 565.
Coordination vrith CITEJA, discussed in article by Mr,
Latcliford, 836.
Resignation of Mr. Brophy as U.S. representative, ac
ceptance, 857.
Public Healtli, International Office of, meetings, 711, 755
813, 856, 884.
Public health and welfare in Japan, SCAP report, 807.
Public Liaison, Division of, cooperation with American
Platform Guild, 6.
Public safety in Japan, SCAP report, 750.
Publications :
Agriculture in the Americas, 1133.
Anglo-American Caribbean Commission, 264.
Foreign Commerce Weekly, 968, 1014.
Lists :
Congress, U.S., 264, 352, 400, 452, 596, 871, 1019, 1053,
1130.
Department of State, 308, 543, 688, 780, 1098, 1134.
State Department:
Allied Mission to Observe Greek Elections, report, 865.
Foreign Relations of the United States, 1931, vol. Ill:
1129.
Foreign Relations of the United States: The Paris
Peace Conference (1919), vol. VII: 918.
Treasury Department, 452.
Purchasing missions, foreign, discussions on, 819.
Quisling, Vidkun, complicity in German occupation of
Norway, German documents on, 699, 936.
Radar, staten>ent on sale of, 821.
Radcliffe College, Cambridge, Mass., address by Mr.
Warren, 213.
Radio broadcasts :
German propaganda program, 367.
Standard-band broadcasting. See North American
regional broadcasting engineering conference.
UNRRA reporting, statement by Acting Secretary
Acheson, 131.
Radio broadcasts, short-wave :
Discontinuance of AP and UP service discussed by
Assistant Secretary Benton, 92, 94, 217, 574, 726.
International committee, functions and membership,
862.
Programs, U.S., recommendations :
Expression of views by: Mr. Denny, 904; Mr. Evans,
903 ; Mr. Porter, 904 ; Mr. Reed, 902 ; Mr. SarnofC,
903 ; Mr. Shouse, 901 ; Mr. Stanton, 902.
Statements by Mr. Benton, 92, 94, 725, 900.
U.S. responsibility in, article by Mr. Stone, 905.
Radio broadcasts, State Department :
America — as others see us, 11.
AP and UP, attitude toward State Department's pro-
gram, 92, 94, 217, 574, 726.
Atomic energy, international control of, 774.
British loan — what it means to us, 51.
Citizen's role in foreign policy, 492.
Credit to Britain, the key to expanded trade, 185.
Democracy in Japan, .581.
Freedom of tlie press, world-wide, 156.
General Assembly, meeting of, 38G.
Germany and the occupation, 910.
Inter-American policy, 20.
Korea and the Far East, 104.
Niirnberg trials, 2.50.
U.S.-U.K. relations, 644.
Wheat crisis in Europe, 191.
Radio distance indicators, agreement with U.K., 397.
Radius, Walter A., designation in State Department, 180.
Rationing and price control in Japan, SCAP report, 806.
Raw materials (see also Cotton ; Rubber) :
Germany and Japan, U.S. program for supplying, 173.
Japanese, supply for export, 395.
Surplus, problem of, article by Mr. Phillips, 509.
Wool, proposed program for distribution, 491.
Raynor, G. Hayden, designation in State Department, 826.
Rayon industry in Japan, report of textile mission, 1009.
Reciprocal aid. See Lend lease.
Reconversion, status, 268.
Redin, Lt. Nicolai G. (U.S.S.R.), charges against, U.S.
reply to Soviet inquiry regarding, 682.
Reed, Philip D. (chairman of the board. General Electric
Company), letter to State Department on status of
U.S. short-wave broadcasting, 902.
Reeducation in U.S. zone of Germany, progress of, 698.
Refugees. See Displaced persons.
Regional arrangements and their relation to United Na-
tions, article by Mr. Allen, 923.
Reiff, Henry, articles on transition from League of Na-
tions to United Nations, 691, 739.
Relief. See Food ; UNRRA ; wheat.
Religion :
Germany (1940), comments on, in official German docu-
ments, 465.
Japan, SCAP report, 807.
Reparation :
Allied Commission on Reparations, resignation of Mr.
Lubin, 224.
Germany :
Agreement of Allied powers, text of draft, 114.
Allied Control Council plans, 636.
Articles by Mr. Howard, 11123. 1063.
Comments by Mr. Hilldring, 675.
Merchant fleet, disposal, 445.
Occupation by, agreement ( 1945) between Poland and
U.S.S.R. on compensation, 343.
Plant equipment, list, 79.
Inter-AUied Reparation Agency, establishment, at Paris
conference, 114, 115, 119, 1063.
Italy, views of Council of P'oreign Ministers on, 950.
Japan :
Far Eastern Commission, interim policy, 884, 946, 990,
1074, 1111.
U.S. proposals, 826.
Reparations Mi.s.sion, U.S., membership of, 821 n.
Repatriation :
Far Eastern Commission, policy regarding non-J'apanese
in Japan, 1043.
German nationals in Spain, 1011.
U.S. and Soviet citizens, Yalta agreement regarding:
Statement by State Department, 443.
Text, 444.
Representation of interests, transfer of Japanese property
in Hawaii, by Swedish official to U.S., 131.
Research and intelligence, in State Department, Russell
Plan on, 028.
Research materials, foreign, procurement of, article by
Blr. Humphrey, 22.
Restitution of property removed by Germans from Allied
countries, resolution of Paris Conference on Repara-
tion, 122.
Reuters, Ltd., objection to statements in memorandum on
U.S. international information program, 38.
Rice, Commission, Anglo-American, tripartite agreement
witli Siam, 863, 958.
Rice, shortages of crops, 291, 300.
Rio de Janeiro conference. See Inter-American conference
for maintenance of peace and security.
Roberts, Sarali B., article on First Inter-American Demo-
graphic Congress, 66.
Robertson, David A., article on Petroleum Facilities Co-
ordinating Committee, 3.
Rogers, Edith Nourse, participant in radio broadcast, 492.
INDEX, JANUARY TO JUNE 1946
1161
Roosevelt, Franklin D., German propaganda regarding,
279, 311, 312, 313, 314, 315, 365.
Roosevelt, Mrs. Eleanor, delegate to General Assembly of
United Nations, t)2.
Ross, Murray, article on ILO Coal Mining Committee, 704.
Roxas, Gen. Manual (President-elect of the Philippines),
visit to U.S., statement by President Truman, 867.
Rubber :
Allocations for U.S. from Far East, 224.
Inter-Agency Policy Committee on, 541, 934.
Purchase from Far East, bilateral agreements regard-
ing, 1119.
Purchase from Malaya, 644.
Relation to world economy, article by Mr. Phillips, 932.
Supply, 510.
Rubber Advisory Panel, 933.
Rubber Study Group, 933.
Rubin, Seymour J., appointment as U.S. representative for
negotiations on German external assets, 955.
Rumania :
Decisions of Moscow Conference of Foreign Ministers,
non-fulfilraent of, U.S. protest:
Notes from U.S., 1007, 1125.
Replies to U.S. notes, 1048, 1125.
Recognition by U.S., 256, 298.
Russell, Donald S., plan for organization of intelligence
research in State Department, 928.
Russell, Francis, participant in radio broadcasts, 250, 492.
Rutford, Skuli, visiting professor to American republics,
960.
Ryter, Joseph F., participant in radio broadcast, 492.
Saigon, French Indochina, opening of U.S. Consulate and
elevation to rank of Consulate General, 736, 828, 1054.
St. Lavcrence Seaway and Power Project, U.S. and
Canada, statement by Mr. Acheson, favoring legisla-
tion, 334.
Sakhalin, agreement at Yalta regarding, 189, 190, 282.
Saltaneh, Ghavam (Iranian Prime Minister and Foreign
Minister), letter to Security Council accrediting Hus-
sein Ala as Iranian representative, 657.
Sanitary convention concerning maritime travel (1926),
as amended (1944) :
Accession by Belgium, 451.
Ratification by: Brazil, 299; Canada, 40; U.K., 40.
Sanitary convention concerning maritime travel (1926),
as amended (1944), protocol prolonging:
Entry into force, 869.
Text, 860.
Transmittal to Senate, with report of Secretary Byrnes,
1085.
Sanitary convention for aerial navigation (1933), as
amended (1944) :
Accession by Belgium, 451.
Application to British territories, 40, 81.
Ratification by Canada, 40.
Sanitary convention for aerial navigation (1933), as
amended (1944), protocol prolonging:
Entry into force, 869.
Transmittal to Senate, with report of Secretary Byrnes,
1085.
Sarnoff, David (president. Radio Corporation of Amer-
ica), memorandum to Secretary of State on status of
U.S. short-wave broadcasting, 903.
Satterthwaite, Joseph C, designation in State Depart-
ment, 1097.
Saudi Arabia :
Minister to U.S.(Asad al Faqih), credentials, 351.
Radiotelegraph circuit with U.S. discussed, 61.
U.S. Minister (Cbilds), appointment, 828.
Savannah meeting of Boards of Governors of International
Bank and Fund :
Addresses by Mr. Vinson, 478. .527.
Dates of meeting, 290, 330, 375, 431, 476, 525.
International secretariat, listed, 433.
Savannah meeting of Boards of Governors of International
Bank and Fund — Continued
Invitations extended in accordance with Bretton Woods
agreement.s, 219.
Message from President Truman, 478.
Purpo.se of meeting, 331.
U.S. Delegation, listed, 433.
SCAP. See Supreme Commander for the Allied Powers.
Scientific and Cultural Cooperation, Interdepartmental
Committee on. See Interdepartmental (Committee.
Seamen, consular services to, inter-offlce transfer of func-
tions, S3.
Secretariat of the United Nations. See United Nations.
Secretary of Agriculture, designation as chairman of inter-
agency committee on FAO problems, 656.
Secretary of State (see also Byrnes, James F. ), appoint-
ment as member of Cabinet Committee on Palestine
and Related Problems, 1089.
Secretary of the Treasury, appointment as member of
Cabinet Committee on Palestine and Related Prob-
lems, 1089.
Secretary of War, appointment as member of Cabinet
Committee on Palestine and Related Problems, 1089.
Securities, Czechoslovak, deadline extended for registra-
tion, 339.
Security Council of United Nations:
• Admission of new members of United Nations, provi-
sional rules of procedure on, 663, 945.
. Agenda, provisional rules of procedure on, 661.
Albania, question of admission to United Nations, 754,
851.
Applications for United Nations membership to be rec-
ommended by, proposal by Mr. Stettinius, 881.
Appointment of U.S. Deputy Representative (Johnson),
754.
Committee of Experts, dates of meeting, 375, 431, 476,
525.
Communications from private individuals and non-gov-
ernmental bodies, provisional rule of procedure on,
664.
Composition of Council, 469.
Conduct of business, provisional rules of procedure on,
663, 942.
Greece, British troops in, settlement of dispute con-
cerning, 90, 233, 267.
Indonesia, discussion on British troops in, 90, 234, 275.
Iranian case:
Alleged Soviet interference in Iranian matters :
Referral to Council by Iran, 90.
U.S. inquiry, 483.
Letters and remarks :
Mr. Ala (Iran), 657, 706, 854, 941.
Secretary Byrnes (U.S.), 267, 435, 570, 620, 828.
Mr. Gromyko (U.S.S.R.), 568, 657, 828.
Mr. Stettinius (U.S.), 529, 706, 752, 987.
Resolutions regarding, 147, 621, 8-i3.
Retention on agenda, question of :
Letter from Iranian Representative to Secretary-
General, requesting withdrawal, 706.
Letter from Secretary-General to Council Presi-
dent regarding, 707.
Remarks of U.S. Representative, favoring retention,
706, 707, 70S, 9S7.
Summaries, bv Secretary-General of Council (Lie),
657, 753, 849.
Languages, provisional rule of procedure on, 663, 943.
Meeting in London, dates, 219, 290, 330.
Meeting in New York, dates, 431, 5^5, 755, 884, 1111.
Meetings, provisional rules of procedure on, 661.
Messages from President Truman and Secretary Byrnes
at opening meeting in New York, 567.
Organization, 62, 65.
Presidency, provisional rules of procedure on, 662.
Procedure :
Adoption of provisional rules, 661, 942.
Summary statements by IMr. Lie, 754, 850.
1162
DEPARTMENT OF STATE BULLETIN
Security Council of United Nations — Continued
Publicity of meetings, provisional rules of procedure on,
663, 944.
Records, provisional rules of procedure on, 663, 944.
Representation and credentials, provisional rules of pro-
cedure on, 662.
Resignation of U.S. Representative (Stettinius), ex-
change of letters between President Truman and
Mr. Stettinius, 988.
Secretariat, provisional rules of procedure on, 663.
Spanish situation:
Polish referral of question of Franco regime to Se-
curity Council, 660.
Proposals for resolution on, 788.
Status, summary statements by Mr. Lie, 753, 850.
Subcommittee on Franco :
Establishment In Security Council, 796.
Progress of, 881.
U.S. position regarding, 486, 709.
Status of matters under consideration by, summary
statements by Mr. Lie, 753, 849.
Syria and Lebanon, complaint on presence of British
and French troops in, 234, 275.
Voting procedure, 663, 851, 943.
Selective Service Act :
Comments by Secretary Byrnes, 482.
Extension of, proposed by President Truman, 141.
Selective Service processing of U.S. citizens outside U.S.,
1035.
Senate Committee on Banking and Currency, statement
by Mr. Clayton on British loan, 437.
Senate confirmations of U.S. representatives. See Foreign
Service.
Shipping (see also Transportation ; Vessels) :
German merchant fleet, disposal, 117, 445.
Passenger Shipping Committee, State Department
(D. R. 183.7), 970.
United Maritime Authority :
Discontinuance, and text of temporary multilateral
agreement on, 487.
Meeting in London, 171, 219, 290, 292.
U.S. Liberty ships, grain transported from U.S.S.R. to
France in, 730.
U.S. vessels to be made available to foreign countries,
822.
Shipping Division, Office of Transport and Communi-
cations :
Composition, 1094.
Organization and functions (D.R. 131.12), 1132.
Short-wave broadcasting. See Radio.
Shouse, J. D. (vice president in charge of broadcasting,
Crosley Corporation), letter to State Department on
status of U.S. short-wave broadcasting, 901.
Siam:
Attitude of Czechoslovakia toward, in World War II:
730.
Resumption of relations with U.S. and U.K., 5.
Treaties, agreements, etc. :
Anglo-American Rice Commission, establishment of,
tripartite agreement, signature, 863.
Existing treaties and agreements with U.S. to continue
in force, 178.
Peace treaty, with: Australia, text, 966; India and
U.K., text, 963.
U.S. Legation at Bangkok, opening, 83.
U.S. Minister (Stanton), appointment, 82S.
Silesia, cession, comments by Mr. Acheson, 189, 190.
Silver-fox furs, reconsideration of Canadian quotas, 176.
Sldvik, Juraj, credentials as Czechoslovak Ambassador to
U.S., 1082.
Smith, Harold D. (director of Bureau of the Budget),
letter to President Truman with supplemental esti-
mate of appropriation for UNRRA, 866.
Smith, Henry Lee, Jr., heads language-training program,
1133.
Smith, Walter Bedell, appointment as U.S. Ambassador
to U.S.S.R., 544.
Snyder, John W. (director of War Mobilization and Re-
conversion), assistance to foreign countries in food-
supply problems, 822.
Social Commission, temporary, of Economic and Social
Council, opening meeting in New York, 814.
Social-.service work in Latin America, report to Pan Amer-
ican Union, 21.
South America. See American republics, and the individ-
ual countries.
Soviet Purchasing Mission, trade plans on termination of,
819.
Soviet Union. See Union of Soviet Socialist Republics.
Spaak, Paul-Henri, President of first General Assembly, 17.
Spaeth, Carl B., designation in State Department, 826.
Spain :
Franco regime :
Attitude of U.S., U.K., and France, 399, 412, 486.
Position of United Nations. See Spanish situation
under Security Council.
Relations with Axis leaders, 413.
German nationals in, repatriation, 1011.
Nazi atomic plants in, alleged, statement regarding, 681.
Nazis in, deportation, remarks to Security Council by
Mr. Stettinius regarding, 789.
Sale of U.S. arms to, allegation denied, 218.
Standard-band broadcasting, 377, 379, 400.
Stanton, Edwin F., appointment as U.S. Minister to Siam,
828.
Stanton, Frank (president, Columbia Broadcasting Sys-
tem), letter to State Department on status of U.S.
short-wave broadcasting, 902.
State Department {see also Departmental regulations;
Executive orders; Radio broadcasts) :
Appointments :
Assistant Secretary of State (Hllldring), 736.
Legal Adviser (Fahy), 735.
Special Assistant to the Secretary (Langer), 826.
Fisheries and Wildlife Branch of International Re-
sources Division, establishment and functions, 735.
Intelligence program :
Lack of funds for, statement by Secretary Byrnes, 687.
Russell Plan for organization, 928.
Inter-American Affairs, Office of, transfer of certain
functions to (Ex. Or. 9710), 686.
Occupied areas, directive concerning, 734.
Office of Transport and Communications, realignment of
organizational structure, 1094.
Office of Under Secretai-y of State for Economic Affairs,
establishment, action by Committee on Foreign Af-
fairs on bill, 1093.
Petroleum Facilities Coordinating Committee, member-
ship on, 3.
Publications. See Publications.
Records of, use (D.R. 420.1), 779.
Training announcements, 918, 972, 1020, 1054, 1097, 1133.
State trading, relation to international trade, 407.
State-War-Navy Coordinating Committee:
Coordination of U.S. policy in occupied areas. State
Department directive on, 734.
Relation to Office of Military Government, U.S. zone (in
Germany), discussed in radio broadcast, 914.
State Department member (D.R. 134.1), 1132.
Statements, addresses, and broadcasts of the week, listed,
683, 728, 751, 819, 860, 920, 967, 1010, 1078.
Statistical Commission, opening meeting in New York, 814.
Stettinius, Edward R., Jr. :
British troops in Indonesia, Soviet demands for commis-
sion of inquiry opposed by, 275.
Iranian case, remarks to Security Council, 529, 706, 752,
853, 987.
Letter to Secretary-General of Security Council, pro-
posing resolution on applications for membership in
United Nations, 881.
INDEX, JANUARY TO JUNE 1946
1163
Stettinius, Edward B., Jr. — Continued
Security Council, general statement to, 63.
Spanlsli situation, remarks to Security Council, 709, 788.
Resignation as U.S. Representative to United Nations,
exchange of letters with President Truman, 968.
Stevenson, Adlai E., resignation as U.S. Delegate to United
Nations, 427.
Steyme, Alan N., designation in State Department, 826.
Stillwell, James A. :
Articles :
U.S. responsibilities in European food crisis, 831.
Wheat and coal for liberated areas, 152.
Participant in radio broadcast, 191.
Stoddard, George D. (chairman of U.S'. education mission
to Japan) :
Letter to Mr. Benton on completion of work, 641.
Report of, letter of transmittal to General MacArthur,
768.
Stokes, Isaac N. P., designation in State Department, 826.
Stone, Donald C, appointment as U.S. representative on
Preparatory Commission of UNESCO, 257.
Stone, William T. :
Article on international broadcasting, 905.
Designation in State Department, 180, 351.
Strasbourg, France, opening of U.S. Consulate, 736.
Strong, Gordon, appointment to study Korean finances,
449.
Students, foreign, special courses for, colleges listed, 1013.
Students, U.S., invitation to participate in archaeological
excavations in U.K., 961.
Stuttgart, Germany, opening of U.S. Consulate, 399, 451.
Suez, Egypt, closing of U.S. Consulate, 544.
Suffrage for women in South America, 249.
Sugar, regulation of production and marketing, interna-
tional agreement (1937), protocol prolonging, 236,
778, 1084.
Sumner, John D., designation in State Department, ISO,
452.
Supreme Commander for the Allied Powers (see also
MacArthur) :
Administrative areas, map showing, 804.
Constitution in Japan, new, consultation with Far East-
ern Commission regarding, 990.
General Headquarters, report on non-military activities
in Japan and Korea, 749, 805, 807, 1067.
International Military Tribunal for the Far East, as
established by changes in text of Charter, 8iX).
Political activities, internal, in Japan, policy on, re-
marks by Mr. Atcheson, 915.
Summation of activities in Japan and Korea, for March
1946, announced, 915.
Surplus commodities, problem of, article by Mr. Phillips,
509.
Surplus war property, disposal :
Agreements. See Lend lease.
Austria, loan from U.S. to purchase, 818.
Canada and Atlantic areas, offices in, 350.
Designation of authority for (D.R. 139.2), 1017.
Foreign Liquidation Commissioner, report, 820.
National Advisory Council on International Monetary
and Financial Problems, statement, 382.
Petroleum facilities abroad, 3.
President Truman's message to Congress, mention in,
143.
Redistribution of functions, in foreign areas (Ex. Or.
9730, amending Ex. Or. 9630), 1000.
U.S. defense installations in Canada, agreement regard-
ing purchase, 683.
U.S. vessels to be made available to foreign countries,
822.
Surrey, Walter S., designation in State Department, 452.
Sweden :
Closing of U.S. Consulate at Malmo, 400, 1130.
Negotiations with Allies regarding German external
assets in, 990, 992, 1042, 1074, 1111.
Sweden — Continued
Representation of Japanese interests in Hawaii and
transfer of property to U.S., 131.
Switzerland :
Exportation of watches to U.S., proposed limitation on,
exchange of memoranda, 763.
German assets in, disposition of:
Agreement between Allied and Swiss Governments,
texts of letters, 955, 1121.
Article on, 1101.
Meeting in Washington, 525, 565, 618, 655, 711, 755,
813, 856, 884, 946, 955, 990.
SWNCC. See State-War-Navy Coordinating Committee.
Syria, complaint to Security Council, on presence of Brit-
ish and French troops in, 234, 275.
Szegedy-Maszdk, Aladdr, credentials as Hungarian Minis-
ter, 132.
Taipei, Taiwan (Formosa), opening of U.S. Consulate, 736,
872.
Tapachula, Mexico, closing of U.S. Vice Consulate, 1130.
Tariff (see also Customs) :
Discussed in article by Mrs. Potter, 404.
Negotiations, alleged, for reductions, U.S. and U.K., 820.
Policy toward Philippines, notes between U.S. and Bo-
livian Governments regarding, 1049.
Taussig, Charles W., address at opening plenary session
of West Indian Conference, 333.
Taxation. See Double taxation.
Taylor, Myron C, return to the Vatican as Personal Rep-
resentative of President Truman, 818.
Telecommunications :
Bermuda agreement (1945) :
Acceptance by U.K. and Australia, 714.
Entry into force, 714.
Bermuda conference, report by Miss Kelly, 59.
Direct service between State Department and Paris Em-
bassy inaugurated, 345.
North American regional broadcasting engineering con-
ference, 170, 376, 379, 400.
Radio distance indicators on aircraft, agreement be-
tween U.S. and U.K., 397.
Short-wave broadcasting. See Radio.
Telecommunications Division, OflBce of Transport and Com-
munications :
Composition, 1094.
Functions (D.R. 131.13), 1132.
Terrill, Robert P., article on U.S. trade proposals, 455.
Textile mission, international, to Japan :
Composition, 178.
Report, 1009.
Thorp, Willard L., address on reconstruction of Europe,
300.
Three Eastern Provinces, Sino-Soviet agreement regard-
ing, 204, 206.
Thurston, Walter, appointment as U.S. Ambassador to
Mexico, 971.
Tokyo, Japan :
Far Eastern war criminals, first trial in, 3(54.
National City Bank of New York, reopening of branch
in, 642.
Trade, international (see also Blocked Nationals; Finan-
cial agreement, U.S.-U.K. ) :
Barriers, article by Mrs. Potter, 403.
Cartels, relation to, article by Mr. Terrill, 455.
Conference, plans for, 140, 175 n., 188, 326, 327, 328, 383,
539, 648, 892, 98S.
Discussions, plans for, 820.
Economic affairs between U.S. and Philippines, Polish
attitude, 773.
Expansion of, address by Mr. Brown, 539.
Greece, negotiations on expansion of production and
employment, 175.
International Trade Organization, proposed, 326, 383,
403, 430, 616, 631, 647.
1164
DEPARTMENT OF STATE BULLETIN
Trade, international — Continued
Italy, resumption of private trade with, 261.
Japan, control and regulation, 394.
Polish loan, provisions of, 761.
Privileges, exclusive, in ex-enemy states, U.S. policy on,
letter of Mr. Acheson to British Ambassador and to
president of TWA, 908.
Purchasing missions in U.S., foreign, discussions on, 819.
St. Lawrence waterway, comments by Mr. Acheson, 334.
Silver-fox furs, reconsideration of Canadian quotas, 176.
U.S. proposals for expansion, articles and statements
by: air. Bunn, 647; Secretary Byrnes, 892; Mr.
Clayton, 680; Mr. Erickson and Mr. Plank, 561;
Mr. Hyde, 616; Mr. Phillips, 509; Mrs. Potter, 403;
Mr. Terrill, 455; Mr. Wilcox, 630.
Trade Agreements Act, relation to U.S. trade proposals,
article by Mr. Bunn, 647.
Trade and employment conference, proposed :
Announcement by Secretary-General of United Nations,
988.
Economic and Social Council, resolution to call (text),
648.
Plans, 140, 175 n., 188, 326, 327, 328, 383, 403, 539, 632, 648.
Statement by Secretary Byrnes, 892.
Trade marks (see also Industrial property), international
registration (1891), London revision (1934), adher-
ence by Luxembourg. 514.
Trade Organization, International, proposed, 326, 383, 403,
431, 616, 631, 647.
Trade Unions, World Federation of, representation in
United Nations affairs, 199, 276.
Transcontinental and Western Air, Inc., letter to presi-
dent (Frye) from Mr. Acheson regarding U.S. atti-
tude toward proposed contract with Italy, 908.
Trans-Jordan, status of and U.S. attitude on recognition
of, letter from Secretary Byrnes to Senator Myers,
765.
Transport and Communications, Office of:
Functions (D. R. 131.10), 1131.
Reorganization, 1094.
Ships and seamen, consular services for, transferred
from Office of the Foreign Service, 83.
Transport and Communications Commission, temporary,
of the Economic and Social Council, opening meeting In
New York, 814.
Transportation :
Export Control Committee, membership, 154.
Poland, purchase of U.S. railway equipment, loan for,
761.
Problems relating to development of Danube basin,
article by Mrs. Whitnack and Mr. Handler, 1108.
Supplies to Europe, 193, 194, 195.
Travel grants for Chinese students, extension of applica-
tion date, 1091.
Travel grants for study in other American republics re-
sumed. 179.
Treasury Department :
Publication of "Census of Foreign-owned Assets in
U.S.", 452.
Transfer of certain lend-lease functions from State De-
partment to (Ex. Or. 9726), 959.
Treaties, agreements, etc. :
Advice and assistance on matters pertaining to (D.R.
251.1), 1017.
Anglo-American Rice Commission, establishment of,
U.S., U.K., and Siam, signature, 863.
Aviation (see also Civil aviation infra) :
Air bases, with U.K. (1941), draft of heads of agree-
ment relating to, 593, 864.
Airports in Azores, transit use by U. S., with Portugal
(1944) :
Expiration, 1051.
Text, 1080.
Military-aviation mission, with Bolivia (1941), re-
newal, 83.
Treaties, agreements, etc. — Continued
Aviation — Continued
Sanitary convention for aerial navigation. See
Sanitary convention infra.
Bermuda telecommunications agreement (1945) :
Acceptance by Australia, New Zealand, and U.K., 714.
Entry into force, 714.
Boundaries, Poland and U.S.S.R., text of agreement
(1945), 341.
Bretton Woods agreements (1945), lists of signatures
and acceptances, 36, 528.
Bulk-sale agreement, preliminary, with India, conclu-
sion, 733.
Civil aviation (see also Aviation supra) :
Agreements and convention drawn up at Chicago,
described by Mr. Clayton, 1004.
Air services transit agreement (1944), acceptances:
Nicaragua, 171 ; Philippines, 715 ; Venezuela, 715.
Air transport agreement (1944), acceptances: Domin-
ican Republic, 377 ; Greece, 715 ; Nicaragua, 171 ;
Venezuela, 715.
Bilateral agreements :
Air .services agreement, U.K. with Greece (1945),
description of, 582.
Air-transport services, U.S. with : Belgium, signa-
ture, 633, 683; Czechoslovakia, signature, 83;
Egypt, text of annex, 10S8; France, signature,
583; Greece, signature, 583; Mexico, conversa-
tions on, 1112; Turkey, signature, 306; U.K.,
statements and text, 302, 390, 584, 586.
Convention (1944) :
Message from President to Senate urging ratifica-
tion, 1079.
Ratifications: Canada, 377; China, 377; Dominican
Republic, 377; Nicaragua, 171; Paraguay, 171;
Peru, 715; Turkey, 171.
Statement by Mr. Clayton, 1004.
Interim agreement (1944) :
Acceptances: Dominican Republic, 377: Nicaragua,
171; Philippines, 715; Venezuela, 715.
Withdrawal by U.K. of reservation respecting Den-
mark, 715.
Interim arrangement between U.S. and Belgium, con-
clusion by exchange of notes, 263.
Claims, with U.K. (1945), acceptance, 580.
CofCee agreement, inter-American (1940), protocol ex-
tending :
Proclamation by President Truman, 867.
Senate approval, 778.
Transmittal to Senate, 180.
Commercial agreements, Czechoslovakia and enemy
countries, Czechoslovak declaration on invalidity,
960.
Customs, modus Vivendi, Brazil and Venezuela (1940),
termination, 581.
Damages from Germany, Poland and U.S.S.R., agree-
ment and protocol (1945), texts, 343.
Defense installations, U.S., purchase by Canada, conclu-
sion, 683.
Diplomatic and commercial, with Yemen, conclusion,
917.
Disarmament and demilitarization of Germany, quadri-
partite draft treaty, text, 81-5.
Disarmament and demilitarization of Japan, quadri-
partite draft treaty, text, 1113.
Double taxation, with France:
Estate-tax convention, conversations on negotiation,
451.
Income-tax convention (1939), conversations on revi-
sion, 451.
Double taxation, with U.K.:
Income tax (1945), supplementary protocol:
Signature, 1052.
Transmittal to Senate, with report by Secretary
Byrnes, 1087.
INDEX, JANUARY TO JUNE 1946
1165
Treaties, agreements, etc. — Continued
Economic and cultural collaboration, U.S.S.R. and
Mongolia, text, 968.
Economic and financial, with Provisional French Gov-
ernment, texts :
Declaration by President Truman and President
Gouin, 994, 1127.
Joint statement on commercial policy, 995.
Lend lease, reciprocal aid, surplus war property, and
claims, settlement of, 997.
Motion pictures, U.S., exhibition in France, 999.
Educ.-itinii, ciHiiierativf, with Panama, 223.
Financial, Greece and U.K., statement by Secretary
Byrnes, 155.
Financial agreement, U.S.-U.K. :
Addresses and statements by: Mr. Acheson, 185, 317,
511, 759 ; Mr. Brown. 540 ; Secretary Byrnes, 267 ;
Mr. Clayton, 271, 437.
President Truman's message to Congress, 183.
Resolution by Advisory Board of Office of War Mobi-
lization and Reconversion and President Tru-
man's statement, 436.
Fisheries of the Great Lakes, proposed convention with
Canada, letter of transmittal by President Truman,
with report by Secretary Byrnes and summary of
text, 823.
Friendship, China and Dominican Republic (1940), as
amended (1945), ratification, 538.
Friendship and alliance, China and U.S.S.R. (1945) :
Agreement and exchange of notes, texts, 201.
U.S.-Chinese memoranda, 448.
Friendship and alliance, Poland and U.S.S.R., agree-
ment and ratification (1945), text, 340.
Friendship and commerce, with Yemen, proposal, 297.
Friendship and mutual aid, Poland and Yugoslavia,
text, 919.
Friendship and mutual assistance, U.S.S.R. and Mon-
golia, text, 968.
German assets in Switzerland, understanding between
Allied and Swiss Governments regarding, and texts
of Swiss letters, 955, 1101, 1121.
Industrial property :
International registration of trade marks (1891), Lon-
don revision (1934), adherence by Luxembourg,
514.
Patent interchange (1942), agreement on amend-
ments, with U.K., signature, 579.
Protection of (1883), London revision (1934), ad-
herence by Luxembourg, 61.
Inter-American Indian Institute, convention providing
for (1940), adherence by Guatemala, 82.
International Bank for Reconstruction and Develop-
ment:
Signatories and acceptances, lists of, 36, 528.
International Monetary Fund :
Signatories and acceptances, lists of, 36, 528.
Japan, occupation of, BCOF to share in, summary of
agreement between U.S. and Australia, 220.
Kurile Islands, agreement between U.S., U.K., and
U.S.S.R. at Yalta (1945), 189, 190, (text) 282.
Lend-lease, settlement of, with : Australia, signature,
1118; Canada, conclusion, 683; China, signature,
1118; France, signature, 997; India, signature, 733,
916; Turkey, signature, 868; U.K. (1945), accept-
ance, 580.
Lend-lease equipment returned to U.S. by U.K., dis-
posal provided for in agreement between U.S. and
Canada, 683.
Load Line convention, proclamation revoking suspen-
sion during war emergency, 132.
Military mission, with Venezuela, signature, 1050.
Monetary agreements, U.K. with Czechoslovakia, Neth-
erlands, and Norway, 81.
Motion pictures, U.S., understanding regarding exhibi-
tion in France, with France, text, 999.
Treaties, agreements, etc. — Continued
Mutual assistance, American republics, plans for, 287,
667, 732.
Naval and air bases, with U.K. (1941), status of ar-
rangements for proposed agreement, 593, 864.
North American regional broadcasting, interim agree-
ment, signature, 376, 379.
Patent interchange (1942), agreement on amendments,
with U.K., signature, 579.
Peace, friendship, commerce and navigation (18.58),
with Bolivia, exchange of notes regarding most-
favored-nation provisions in relation to Philippines,
1049.
Peace, Siam with :
Australia, text, 966.
U.K. and India, text, 963.
Penicillin agreement, with U.K., conclusion, 451.
Postal, universal (1939), adherence by Czechoslovakia,
350.
Radio distance indicators, with U.K., signature, 397.
Reciprocal aid. See Lend lease, settlement of.
Reparation from Germany, Paris agreement on :
Articles by Mr. Howard, 1023, 1063.
Draft text, 114.
Repatriation of U.S. and Soviet citizens, with U.S.S.R. :
Statement by State Department, 443.
Text, 444.
Rubber, purchase from Far East, bilateral agreements,
with France, Netherlands, and U.K., 1119.
St. Lawrence seaway and power project, with Canada,
address by Mr. Acheson, 334.
Sanitary convention concerning maritime travel (1926),
as amended (1944) :
Belgium, accession, 451.
Brazil, ratification, 299.
British territories, application to, 40.
Canada, ratification, 40.
Sanitary convention concerning maritime travel (1926),
as amended (1944), protocol prolonging:
Entry into force, 869.
Text, 869.
Transmittal to Senate, with reiwrt of Secretary
Byrnes, 1085.
Sanitary convention for aerial navigation (1933), as
amended (1944) :
Belgium, accession, 451.
British territories, application to, 40, 81.
Canada, ratification, 40.
Sanitary convention for aerial navigation (1933), as
amended (1944), protocol prolonging:
Entry into force, 869.
Tran.smittal to Senate, with report of Secretary
Byrnes, 1085.
Shipping, continuance of control for United Nations
purposes (1944), discontinuance of United Mari-
time Authority constituted under, text, 487.
Siam, treaties and agreements with U. S. to continue
in force, 178.
Sugar, international agreement regarding production
and marketing (1937), protocol prolonging:
Proclamation by President, 1084.
Transmittal to Senate, and Senate approval, 236, 778.
Surplus war property. See Lend lease, settlement of.
Trade arrangements, proposed with Philippines, rela-
tion to treaty of friendship, commei-ce and consular
rights (1931), Polish note, 773.
Trade marks, international registration (1891), London
revision (1934), adherence by Luxembourg, 514.
UNESCO constitution, acceptance by U.K., 432, 508.
UNRRA (1943), ratification by Uruguay, 281.
War criminals of European Axis, prosecution and pun-
ishment of (1945), accessions, 261, 954.
Whaling, regulation of, agreement (1937) and protocol
(1938), accession by: Chile, 451; Netherlands, 347.
1166
DEPARTMENT OF STATE BULLETIN
Treaties, agreements, etc. — Continued
Whaling, regulation of, supplementary protocol (1944),
accession by Denmark, 347.
Tripartite Commission (pursuant to Moscow Conference
of Foreign Ministers), non-fultilment of Rumanian
assurances to, U.S. protest, 1007, IMS, 1125.
Tripp, Col. John T., return from China, 351.
Troops, Soviet, in Iran. See Iranian case under Security
Council.
Troops, U.S., in Pacific area under British command,
withdrawal of, visit of Admiral Leahy to U.K. regard-
ing, 892.
Truman, Harry S. :
Addresses, statements, etc. :
Air-transport agreement, U.S.-U.K., 399.
Anglo-American Committee of Inquiry, report, 783.
Anniversary of V-E Day (1st), 859.
Atomic-bomb test, 667.
Boards of Governors of International Monetary Fund
and International Bank for Reconstruction and
Development, meeting, 478.
Cabinet Committee on Palestine and Related Prob-
lems, establishment, 1089.
Combined Food Board operations, continuation, joint
statement with Prime Minister Attlee and Prime
Minister King, 861.
Crime against Jews in Germany, retribution for, 369.
FAO, special meeting on urgent food problems, 948.
Financial agi'eemeut, U.S.-U.K., endorsement by Ad-
visory Board of Office of War Mobilization and
Reconversion, 436.
Food crisis, world-wide, 246, 412, 716, 861.
Foreign policy, objectives, 136.
Inter-American Affairs, Office of, termination and
transfer of corporations to State Department,
685.
Inter- American system, 720.
Peace, attainment of lasting, 622.
Personal Representative (Taylor) to the Vatican, 818.
Philippines, collaborators with enemy in, disposition
of, 534.
Philippine rehabilitation and recovery, 822.
United Nations Security Council, message read by
Secretary Byrnes at opening meeting in New York,
567.
UNRRA, Council of, message to opening meeting of
fourth session at Atlantic City, 480.
Visit to U.S. of President-elect of the Philippines
(Roxas), 867.
Wool program, proposed, 491.
Yalta agreement on the Kurile Islands, 190.
Correspondence :
Harriman, W. Averell, on resignation as U.S. Ambas-
sador to the Soviet Government, 306.
Indian Viceroy (Lord Wavell), on food crisis in
India, 861.
International Monetary Fund and International Bank
for Reconstruction and Development, message to
inaugural meeting of Boards of Governors, 478.
Judge Hutcheson, on receipt of report of Anglo-Ameri-
can Committee of Inquiry, 783.
Mr. Stettinius, on resignation as U.S. Representative
to United Nations, 988.
Officers of private organizations, on food crisis, 412.
President of Polish National Council, on UNRRA
shipments of grain, 542.
Secretary Byrnes, on Foreign Service examinations,
306.
Secretary of Agricidture (Anderson), on designation
as chairman of Interagency committee for FAO,
656.
Truman, Harry S. — Continued
Correspondence — Continued
West Indian Conference, on opening session at St.
Thomas, Virgin Islands, 332.
Declaration, joint, with President Gouin, on U.S. -French
agreements on economic and financial problems,
994, 1127.
Executive orders. See Executive orders.
Foreign intelligence activities, directive on, 174.
Messages to Congress:
Annual message, 135.
Congress, transmitting — ■
Financial agreement, U.S.-U.K., 183.
Foreign-loans policy, U.S. statement, 380.
Inter-American Military Cooperation Act, 859.
Lend-lease reports (21st and 22d), 223, 1091.
Report of 1st part of 1st session of General Assem-
bly of United Nations, 530.
UNRRA quarterly reports (5th, 6th, and 7th), 347,
757, 1126.
UNUR-^ supplemental estimate of appropriation,
866.
Senate, transmitting —
Civil aviation, convention on, 1079.
Income-tax convention with U.K. (1945), supple-
mentary protocol, 1087.
Reports and convention with Canada relating to
fisheries of the Great Lakes, 823.
Sanitary convention (1926) and sanitary conven-
tion for aerial navigation (1933), as amended
(1944), protocols prolonging, 1085.
Proclamations :
Alien enemies, removal from U.S., 732.
Load line convention, revocation of suspension during
war emergency, 132.
Wheat shipments to liberated areas, directive on, 151.
World food crisis, discussion with U.K. mission, plans
for, 864.
Trusteeship :
Italian colonies, views of Council of Foreign Ministers,
95L
Japanese mandated islands, U.S. policy, 113.
Korea, U.S. policy, 155.
Trusteeship Council of United Nations :
Composition of, 474.
General Assembly, discussion, 21, 90, 190.
Palestine, policy recommended by Anglo-American Com-
mittee of Inquiry, 785.
Statements regarding, 150, 235.
Tsaldaris, C. (Greek Minister of Foreign Affairs), ex-
change of messages with Secretary Byrnes regarding
good-will visit of U.S.S. Missouri to Greece, 731.
Tugwell, Rexford G. (Governor of Puerto Rico), com-
ments at final session of West Indian Conference, 845.
Tunis, Tunisia, elevation to rank of Consulate General,
1130.
Turin, Italy, opening of U. S. Consulate, 224, 1054.
Turkey :
Return of ashes of Ambassador Ertegun, 447.
Treaties, agreements, etc. :
Air-transport services, bilateral, with U.S., 306.
Civil-aviation convention (1944), ratification, 171.
Lend-lease settlement, with U.S., signature, 868.
UNRRA mission to, 960.
TWA (Transcontinental and Western Air, Inc.), letter to
president (Frye) from Mr. Acheson regarding U. S.
attitude toward proposed contract with Italy, 908.
Ukrainian S.S.R., complaint to Security Council on pres-
ence of British troops in Indonesia, 234, 275.
UMA. iSffc United Maritime Authority.
Under Secretary of State for Economic Affairs, Office of,
establishment, action by House Committee on For-
eign Attairs on bill (H.R. 6646), 1093.
INDEX, JANUARY TO JUNE 1946
1167
UNESCO (United Nations BMueational, Scientific and
Cultural Organization) :
Addresses and statements: Miss Wilkinson, 20O; Mr.
Benton, 408 ; Mr. Benton and Mr. MacLeish before
House Foreign Affairs Committee, 625, 629.
Aims and scope, 307, 027.
Constitution, acceptance by U.K., 432, 508.
Cooperation with other agencies, 9.
Functions, table listing, 882.
Headquarters, 337.
Mass communications :
Advisory group on, 172.
Appointment of senior counselor (White), 714.
Preparatory Commission :
Establishment, discussed in report, 432.
Function, 337.
U.S. Representatives, appointment : Dr. Brunauer,
337; Mr. Stone, 257; Mr. Wilson, 338.
Union of South Africa, signature and acceptance of Bret-
ton Woods agreements (1945), 36.
Union of Soviet Socialist Republics :
Anglo-Soviet-Ameriean communique on disposal of Ger-
man Navy, 173.
Ambassador to U.S. (Novikov), credentials, 1050.
British troops in Indonesia, attitude toward, 275.
Bulgaria, opposition parties in, U.S. reply to Soviet in-
quiry regarding U.S. aide-memoire, 485.
Control Council for government of Germany, joint decla-
ration on liaison with other U.N. governments, 113.
Dispute with Iran. See Iranian case under Security
C^touncil.
Far Eastern Commission, participation, 372.
German propaganda regarding, 313, 316, 365.
Germany, political reconstruction, policy toward, 551.
Gromyko, Andrei A., statements in United Nations, 64,
568, 657, 828.
Japanese assets in Manchuria, interest in disposition,
364.
Manchurian industrial enterprises, U.S.-Chinese memo-
randa regarding control, 448.
Purchasing Mission in U.S., trade plans on termination
of, 819.
Redin, Lt. Nicolai G., charges against, U. S. reply to
Soviet inquiry regarding, 682.
Refugee-control measures, certain proposals by, 276.
Security Council :
Complaint to on presence of British troops in Greece,
233.
Voting procedure, joint statement with U.S., U.K.,
and China, 851.
Treaties, agreements, etc. :
Boundaries, with Poland, text (1945), 341.
Damages from Germany, agreement and protocol,
with Poland (1945), texts, 343.
Disarmament and demilitarization of Germany, quad-
ripartite draft treaty, text, 815.
Disarmament and demilitarization of Japan, quadri-
partite draft treaty, text, 1113.
Economic and cultural collaboration, with Mongolia,
text, 968.
Friendship and alliance, with China (1945) :
Clarification, U.S.-Chinese memoranda on, 448.
Text, 201.
Friendship and alliance, with Poland (1945), text, 340.
Friendship and mutual assistance, with Mongolia,
text, 968.
Kurile Islands, agreement at Yalta regarding (1945),
189, 190, (text) 282.
Repatriation of U.S. and Soviet citizens, with U.S. :
Statement by State Department, 443.
Text, 444.
Sakhalin, agreement at Yalta regarding, 189, 190.
Troops in China, withdrawal, 201.
U.S. Ambassador (Harriman), resignation, 306.
U.S. Ambassador (Smith), appointment, 544.
Union of Soviet Socialist Republics — Continued
U.S. newspapermen in Moscow, censorship procedure,
731.
Vyshinsky, Andrei, statement in General Assembly, 89.
War against Japan, conditions governing entry, 282.
Zone of occupation in Austria, 650.
Zone of occupation in Germany, (502.
United Kingdom {see also Anglo-American Committee of
Inquiry) :
Advisory Economic Commission to Greece, proposal, 79.
Ambassador to U.S. (Lord Inverchapel), credentials,
1050.
Anglo-American Caribbean Commission, announcement
of West Indian Conference, 36.
Anglo-Soviet-American communique on disposal of Ger-
man Navy, 173.
Archaeological excavations, invitation to U.S. students
to participate in, 961.
Aviation, U.S. note replying to British aide-memoire
regarding proposed contract between Italy and
TWA, 908.
Control Council for government of Germany, joint dec-
laration on liaison with other U.N. governments,
113.
Export trade, problems, 267, 271, 301, 318.
Food. See Food.
General Assembly, statement by Mr. Bevin, 64.
German propaganda, 312, 365, 461, 699, 701.
Germany, political reconstruction, jwllcy toward, 552.
Loan. See Financial agreement, U.S.-U.K.
Opium, limitation of production of, texts of U.S. and
U.K. notes and memoranda, 237.
Security Council :
Discussions on presence of British troops in Greece,
Indonesia, and Syria and Lebanon, 233, ^4, 275.
Voting procedure, joint statenient with U.S., U.S.S.R.,
and China, 851.
Siam, resumption of diplomatic relations with, 5.
S'panish situation, exchange of views with U.S. regard-
ing, 399, 412.
Tariff-reduction negotiations with U.S., State Depart-
ment denial, 820.
Telecommunications, conference in Bermuda, 59.
Treaties, agreements, etc. :
Air bases, with U.S., draft of heads of agreement
(1941), 593, 864.
Air-services agreement, with Greece, 582.
Air transport, with U.S. :
Joint statement and final act of conference, 302, 584.
Statement by President Truman, 399.
Text, 586.
Anglo-American Rice Commission, establishment of,
with U.S. and Siam, signature, 8(>3.
Bermuda telecommunications agreement (1945), ac-
ceptance, 714.
Bretton Woods agreements (1945), signature and ac-
ceptance, 36.
Civil aviation, interim (1944), withdrawal of reserva-
tion respecting Denmark, 715.
Disarmament and demilitarization of Germany,
quadripartite draft treaty, text, 815.
Disarmament and demilitarization of Japan, quadri-
partite draft treaty, text, 1113.
Double taxation, with U.S., income tax (1945), sup-
plementary protocol :
Signature, 1052.
Transmittal to Senate, with report by Secretary
Byrnes, 1087.
German assets in Switzerland, with U.S., France, and
Switzerland, summary of, and texts of Swiss
letters, 955, 1121.
Financial agreement with Greece, 155.
Financial agreement with U.S. See Financial agree-
ment.
1168
DEPARTMENT OF STATE BULLETIN
United Kingdom — Continued
Treaties, agreements, etc. — Continued
Kurile Islands, agreement with U.S. and U.S.S.R. at
Yalta (1945), 189, 190, (text) 282.
Lend-lease equipment returned to U.S. by, disposal
provided for in agreement between U.S. and Can-
ada, 683.
Lend-lease settlement, reciprocal aid, surplus war
property, and claims (1945), with U.S., accept-
ance, 580.
Monetary agreements, with Czechoslovakia, Nether-
lands, and Norway, 81.
Naval and air bases, with U.S. (l&tl), draft of heads
of agreement, 593, 864.
Occupation of Japan. See BCOF.
Patent interchange (1942), agreement on amendments,
with U.S., signature, 579.
Peace, with Siam, text, 963.
Penicillin, with U.S., conclusion, 451.
Radio distance indicators, with U.S., signature, 397.
Reparation from Germany, draft, 114 n.
Rubber, purchase from Far East, bilateral, with U.S.,
1119.
Sanitary convention (1926), as amended (1944),
application to certain territories, 40.
Sanitary convention (1926), as amended (1944), pro-
tocol prolonging, entry into force and test, 869.
Sanitary convention for aerial navigation (1933), as
amended (1944), application to certain terri-
tories, 40, 81.
Sanitary convention for aerial navigation (1933), as
amended (1944), protocol prolonging, entry into
force, 869:
UNESCO constitution, acceptance, 432, 508.
U.S. Ambassador (Harriman), appointment, 687.
Visit of U.S. Admiral (Leahy) to consult with Chiefs
of Staff, 892.
World food crisis, agreement with U.S. for joint effort
in, 895.
Zone of occupation in Austria, 651.
Zone of occupation in Germany, 601.
United Maritime Authority :
Council of, meeting in London :
Dates of meeting, 171, 219, 290.
Recommendations at final session, 292.
Representation, 171.
Discontinuance, text of agreement, 487.
United Nations :
Address by Secretary Byrnes, 355.
Albania, question of admission, 190, 754, 851.
Argentine pledges to, alleged breach of, U.S. memoran-
dum on, 285.
Budget, 91, 235.
Charter:
Relation to human rights, article by Mrs. McDiarmid,
210.
U.S. ideals expressed in, discussed by Mr. Braden, 296.
Commissions, committees, organs, 65, 467.
Administrative and Budgetary Committee, creation,
21.
Atomic Energy Commission. See Atomic Energy
Commission.
Economic and Employment Commission. See Eco-
nomic and Employment Commission.
Economic and Financial Committee, creation, 20.
Economic and Social Council. See Economic and
Social Council.
Educational, Scientific and Cultural Organization.
See UNESCO.
Food and Agriculture Organization. See Food and
Agriculture.
Freedom of Information, subcommittee on, proposed
establishment, 855.
General As.sembly. See General Assembly.
Health organization, world, proposed, 882, 1076.
United Nations — Continued
Commissions, etc.- — Continued
Human Rights, Commission on, meeting in New York,
814, 855.
International Court of Justice. See International
Court.
League of Nations Assets, Committee on Transfer of:
Articles liy Dr. Reiff, 691, 739.
Discussion, 91.
Meeting, dates, 525, 655, 755.
Reports, 200, 743, 744, 747.
Legal Committee, creation, 21.
Military Staff Committee:
Composition of, 470.
Meeting, dates, 476, 655, 990, 1111.
Status and rules of procedure, statements by Mr.
Lie, 754, 850.
Narcotic Drugs, appointment of U.S. representative
(Anslinger), 1052.
Political and Security Committee, creation, 20.
Preparatory Commission :
Relation to General Assembly, 18.
Report by, discussed, 62, 63.
Report of Executive Committee to, 18.
Security Council, recommendation of agenda, 63.
Termination of Commission, determined, 18.
Refugees and Displaced Persons, 375, 431, 476, 664,
865, 1111.
Secretariat :
Composition of, 474.
Diplomatic immunity and taxation, discussion, 199,
276.
Discussion of, between Secretary Byrnes and
Secretary-General (Lie), 529.
Security Council. See Security Council.
Social, Humanitarian and Cultural Committee, crea-
tion, 20.
Trade and employment conference. Preparatory Com-
mittee for, 648.
Trusteeship Council. See Trusteeship.
UNRRA, plans, 20, 199.
War Crimes Commission, resignation of Lieutenant
Colonel Hodgson, 855.
Documents, announcement, 987.
Exemptions and immunities, 199, 276, 348.
Headquarters, permanent, selection and negotiations
regarding, 235, 275, 1078.
Iceland, question of admission to, 773.
Information program, 236.
Membership applications, proposed resolution on, 881.
Organs, commissions, committees of, composition, 65,
467.
Property in Italy belonging to nationals of, restora-
tion, 817.
Regional arrangements, relation to, article by Mr. Allen,
923.
Resignation of U.S. Delegate (Stevenson), 427.
Resignation of U.S. Representative (Stettinlus), ex-
change of letters with President Truman, 988.
Secretary-General, election :
Candidate, question of selection, 91.
Selection of Mr. Lie, 147, 234.
United Nations' Association of Maryland, Baltimore, Md.,
address by Mr. Acheson, 185.
United Nations nationals In Japan, repatriation of. Far
Eastern Commission policy regarding, 1043.
United Press, protest of State Department at discontinu-
ance of short-wave broadcasting service to the
Government :
Statements and comments by Mr. Benton, 217, 574, 726.
United States citizens (see also Displaced persons; Re-
patriation) :
Assets in Denmark, release, 1083.
Businessmen in Paris, accommodations for, 1086.
Claims for war damages in Poland and Netherlands,
procedure for filing, 729, 1083.
/iVZ>£X, JANUARY TO JUNE 1946
1169
United States citizens — Continued
Expropriation of property, compensation by Poland
discussed, 670.
Graduate students, Uruguayan statute providing for
acceptance at University of Montevideo, 960.
Passport requirements, change, 395.
Property in :
Belgium, procedure for damages, 634.
Bulgaria, restoration, 446.
Italy, restoration, 817.
Netherlands, instructions for filing claims, 729.
Poland, expropriation, 670.
Return from Germany, plans, 400.
Role in foreign policy, radio broadcast, 492.
Selective Service processing outside U.S., 1035.
Troops in Paclfie area under British command, with-
drawal, visit of Admiral Leahy to U.K. regarding,
892.
University of Montevideo, Uruguay, acceptance of gradu-
ate students from other American republics, 960.
UNRRA :
Agreement (1943), ratification by Uruguay, 281.
Article by Mr. Dort, 359.
Contributions, list of, 131.
Council of, fourth session :
Announcement, 330.
List of U.S. Delegation, 476.
Message from President Truman, 480.
Statements by U.S. representative on (Clayton), 527,
644.
Text of resolution on food, 857.
Director General of, resignation of Mr. Lehman and
appointment of Mr. La Guardia, 619.
Exemptions and immunities, 348.
Funds :
Contributions, list of, 131.
Establishment of committee in General Assembly for,
199.
Resolution for increase of, presented at General As-
sembly, 20.
Supplemental estimate of appropriation :
Mr. Smith (Director of the Bureau of the Budget),
letter to President Truman, 866.
President Truman, letter of transmittal to Con-
gress, 866.
Liberated areas, shipments (1945) to, 224.
Poland, exchange of messages between president of
National Council of the Homeland and President
Truman regarding shipments of grain to, 542.
Press and radio reporting of activities, request made
to various governments by Acting Secretary Ache-
son, 131.
Quarterly reports (5th, 6th, and 7th), transmittal to
Congress by President Truman, 347, 757, 1126.
Scope, statement of, 949.
Shipping agreement for transportation of supplies, 488.
Surplus property transferred from Foreign Liquidation
Commission, 820.
Turkey and Near East, mission to, 960.
Wheat crisis abroad, address by Director General (La
Guardia), 716.
UNRRA Division, Office of Budget and Finance, functions
(D.R. 124.4), 1015.
UP. See United Press.
Uruguay (.see also American republics) :
Ciiltural leader, visit to U.S., 1130.
Graduate students from other American republics at
University of Montevideo, statute providing for, 960.
Treaties, agreements, etc. :
Bretton Woods agreements (1945), signature and ac-
ceptance, 36.
UNRRA (1943), ratification, 281.
War criminals of European Axis, agreement for pros-
ecution and punishment of (1945), accession, 954.
Visiting professor from U.S., 870.
Vandenberg, Arthur H., letter to Secretary of State re-
garding U.S. policy on Polish displaced-persons camps
in Germany, 1003.
Vatican City, return of Personal Representative (Taylor?
of President Truman, 818.
V-E Day, 1st anniversary, statement by President Tru-
man, 859.
Venezia Giulia :
German assets in, disposition, 124.
Government of, views of Council of Foreign Ministers
on, discussed in address by Secretary Byrnes, 951.
Venezuela {see also American republics) :
Ambassador to U.S. (Machado Hernfindez), credentials;
730.
Cultural leader, visit to U.S., 870.
Treaties, agreements, etc. :
Civil-aviation agreements : air transit, air transport,
and interim (1944), acceptance, 715.
Customs, modus Vivendi, with BrazU (1940), termina-
tion, 581.
Military mission, with U.S., signature, 1050.
War criminals of the European Axis, prosecution and
punishment of (1945), accession, 261.
Vessels :
Entry and clearance, consular services for, inter-office
transfer of functions, 83.
Marine Perch, repatriation of German nationals in
Spain, 1011.
Missouri, good-will visit to Greece, 731.
Veterans, Foreign Service examinations for, 306.
Vienna, Austria, joint administration by Allies In, 650.
Vincent, John Carter :
Memorandum to Far Eastern Commission, 376.
Participant in radio broadcast, 104.
Vinson, Fred M. :
Address at meeting of Boards of Governors of Inter-
national Monetary Fund and International Bank
for Reconstruction and Development, 478, 527.
Appointment as U.S. Governor of International Mon-
etary Fund and International Bank, 262.
British loan, discussed in radio broadcast, 51.
Virginia Press Association, foreign newspapermen to be
guests of, 260.
Visa and immigration matters, contacts with Department
of Justice regarding (D.R. 232.2), 970.
Vyshinsky, Andrei (Soviet Vice Commissar for Foreign
Affairs) :
Atomic Energy Commission, attitude, 89.
British troops in Indonesia, withdrawal recommended
by, 275.
Walton, Lester A., resignation as Minister to Liberia, 450.
Wang Shih-chieh, exchange of notes vv-ith Molotov regard-
ing friendship and alliance treaty, China and U.S.S.R.,
204.
War against Allies, question of Spanish entry into, texts
of Spanish and Axis documents, 413.
War against Japan, conditions governing entry of U.S.S.R.
into, 282.
War booty, removal from Manchuria, alleged reports, 364.
War Crimes Commission, United Nations, resignation of
Lieutenant Colonel Hodgson, 855.
War criminals, European :
Agreement between major powers for prosecution of
(1945), accessions, 261, 954.
Confiscation of property, resolution of Paris Confer-
ence on Reparation, 124.
German, crime against Jews, 369.
War criminals. Far East:
Charter and proclamation regarding, 361, 618, 890.
Far Eastern Commission, attitude, 618.
Indictment, statement by Mr. Keenan (chief of counsel
for prosecution), 846.
Japan, SCAP reports, 751, 809.
List of, 847.
Trial, 361, 376.
1170
DEPARTMENT OF STATE BULLETiS
War Damage Commission, Philippine, appointment of
U.S. members, 955.
War Department :
Air-navigation facilities abroad, functions relating to,
transfer to Department of Commerce (Ex. Or.
9709), 684.
Cabinet Committee on Palestine and Related Problems,
appointment of Secretary of War as member, 1089.
Germany, civil administration in, 197.
Petroleum Facilities Coordinating Committee, member-
ship on, 3.
State-War-Navy Coordinating Committee, 734, 914, 1132.
War expenditures, discussed in President Truman's mes-
sage to Congress, 142.
War Information, Office of, consolidation and transfer of
certain functions, 57.
War Relief Control Board, President's, termination (Ex.
Or. 9723), 1015.
War Shipping Administration :
Assignment of vessels for relief work, 730.
Membership on Petroleum Facilities Coordinating
Committee, 3.
Waring, Frank A., appointment as member of Philippine
War Damage Commission, 955.
Warren, George L., address on migration policies and
world economy, 213.
Warsaw Convention of 1929, discussed in article by Mr.
Latchford, 839.
Watches, importation of, exchange of memoranda between
U.S. and Swiss Governments regarding limitation, 763.
Water power, development. See St. Lawrence.
WaveU, Lord (Viceroy of India), letter to President Tru-
man on food crisis in India, 861.
Weather stations, U.S., in Canada, agreement regarding
purchase, 683.
Welles, Sumner, European visit (1940), German docu-
ments on, 459.
West Indian Conference, 2d session, St. Thomas, Virgin
Islands :
Address by Mr. Taussig, 333.
Agenda, 292.
Countries represented, 330.
Dates of meeting, 169, 219, 290, 330, 375, 431, 476.
Message from President Truman, 332.
Report by Miss Armstrong, 840.
West Indies. See Anglo-American Caribbean Commission
and the individual countries.
Whaling, regulation of, agreement (1937) and protocols
(1938 and 1944), 347, 451.
WhGftt '
Transportation from U.S.S.R. to France in U.S. Liberty
ships, 730.
U.S. 1945 crop, 301.
U.S. shipments to: France, 674; Germany, 756; India,
861, 958, 1084; Japan, 756; Liberated areas, 151,
152, 360, 716, 717.
World shortages, 191, 291, 300, 831, 895.
White, Harry D., appointment as U.S. Executive Director
of the International Monetary Fund, 262.
White, Llewellyn B., appointment as senior counselor in
mass communications for UNESCO, 714.
Whitnack, Doris S., article on Danubian transportation
problems, 1108.
Wiesman, Bernard, article on ILO constitution, amend-
ment proposals, 102S.
Wilcox, Clair, addresses :
British loan, 96.
U.S. trade proposals, 630.
Wildlife and Fisheries Branch of International Kesources
Division, establishment and functions, 735.
Wilkinson, Ellen, remarks on UNESCO, 200.
Willkie, Wendell L., Negro journalism awards, address oy
Mr. Braden, 392.
Wilson, Howard E., designation as principal officer of fl^'
ternational secretariat. Preparatory Commission X^
UNESCO, 338. ■i
Winant, John G. : *
Address on economic and social world, 975.
Designation as U.S. representative on Economic ai*
Social Council, 74, 573.
Winchell, Walter, statement charging U.S. sale of arms to
Siiain, 218.
Windle, R. T. (U.K.), statement on Greek elections, 582.
Women, International Federation of, request for member-
ship in Economic and Social Council, 126.
Women, status of, subcommission of ^COSOC opening
meeting in New York, 814.
Women's Action Committee, National Convention of,
Louisville, Ky., address by Mr. Acheson, 759.
Women's American Organization for Rehabilitation
Through Training, New York, N.Y., address by Mr,
Acheson, 893.
Women's Organizations, Service Bureau for, Hartford,
Conn., address by Mr. Thorp, 300.
Wood, C. Tyler, designation in State Department, 351, 969.
Wood, Merle K., designation in State Department, 351.
Wool:
Proposed program for distribution, comments by Presi-
dent Truman, 491.
Report of textile mission to Japan, 1009.
World Federation of Trade Unions :
Economic and Social Council, request for membership
in, 91.
Representation in United Nations affairs, 199, 276.
Wright, William D., designation in State Department, 826.
Yalta agreements :
Kurile Islands and Sakhalin, 189, 190, 282.
Repatriation of U.S. and Soviet nationals, 443, (text)
444.
Yemen :
Agreements :
Diplomatic and commercial, with U.S., conclusion, 917.
Friendship and commerce, U.S. representatives in-
vited to discuss, 297.
U.S. Mission to, membership, 446.
Young, John P., designation in State Department, 180, 452.
Young, John S., appointment as member of Philippine War
Damage "Commission, 955.
Yugoslavia :
Ambassador to U.S. (Kosanovic), 728.
Boundary, Italian-Yugoslav :
Appointment of commission to recommend, 391.
Views of Council of Foreign Ministers on, address
by Secretary Byrnes, 950.
Establishment of diplomatic relations with U.S., 728.
Mikhallovich, Gen. Draza :
U.S. requests to submit testimony in behalf of, 634,
909.
Yugoslav denial of U.S. requests, 669.
Opening of U.S. Consulate at Zagreb, 1130.
Treaties, agreements, etc. :
Bretton Woods agreements (1945), signature and
acceptance, 36.
Friendship and mutual aid, with Poland, text, 919.
Reparation from Germany, draft, 114 n.
War criminals of the European Axis, prosecution and
punishment of (1945), accession, 261.
Zagreb, Yugoslavia, opening of U.S. Consulate, 1130.
Zones of occupation in Austria and Germany, articles by
Mr. Hoffman, 599, 649.
V. 9. aOVERNHIIIT rllHTIHt OFFICII l>4i
THE DEPARTMENT OF STATE
jMHm
VOL. XIV, NO. 341 JANUARY 6 AND 13, 1946
In this issue
Can America Afford To Be Silent?
By ASSISTANT SBCEETAET BENTON
General Assembly of UNO
REPORT FROM LONDON
What Is Our Inter-American Policy?
RADIO BROADCAST
Procurement of Foreign Research Materials
By RICHARD A. HUMPHREY
Petroleum Facilities Coordinating Committee
By DAYID A. ROBERTSON
For complete contents >^^^&4fi«l^^^r
see inside cover *
THE DEPARTMENT OF STATE
BULLETIN
,^«NT o>
Vol. XIV'No. 341»
• Publication 2449
January 6 and 13^ 1946
For Bale by the Superintendent of Documents
U. S. Government Printing Office
'Washington 25, D. C.
Subscription:
52 issues, $3.50; single copy, 10 cents
Special offer: 13 weeks for $1.00
(renewable only on yearly basis)
The Department of State BULLETIN,
a weekly publication compiled and
edited in the Division of Research and
Publication, Office of Public Affairs,
provides the public and interested
agencies of the Government with
information on developments in the
field of foreign relations and on the
work of the Department of State and
the Foreign Service. The BULLETIN
includes press releases on foreign
policy issued by the White House and
the Department, and statements and
addresses made by the President and
by the Secretary of State and other
officers of the Department, as well as
special articles on various phases of
interruitional affairs and the functions
of the Department. Information con-
cerning treaties and international
agreements to which the United States
is or may become a party and treaties
of general internatioruil interest is
included.
Publications of the Department, cu-
mulative lists of which are published
at the end of each quarter, as well as
legislative materialin the field of inter-
national relations, are listed currently.
(^ontents
Beginning with volume XIV, issues of the
Bulletin will carry an advance date of one
week. It is necessary therefore to assign
a double date to this issue.
Page
Petroleum Facilities Coordinating Conunittee. By-
David A. Robertson 3
Resumption of Relations With Siam 5
Conference of Lectui-ers on International Affairs:
Participants and Programs 6
Message From the Secretary of State 6
Can America Afford To Be Silent? By Assistant
Secretary Benton 7
Experts To Join General MacArthur's Staff .... 10
America — As Others See Us: Radio Broadcast . . . 11
General Assembly of UNO: Report From London
to the Office of Public Affairs, Department of
State 17
Social-Service Work in Latin America 21
Procurement of Foreign Research Materials. By
Richard A. Humphrey 22
What Is Our Inter-American Policy? Radio Broad-
cast 26
Disposition of Enemy Aliens From Other American
Republics: United States Memorandiun ... 33
International Organizations and Conferences
Calendar of Meetings 35
Activities and Developments:
Anglo-American Committee of Inquiry 35
The Conference of Delegates on Constitutional Questions
of the International Labor Organization . 35
West Indian Conference 36
Signing of Bretton Woods Agreements 36
The Record of the Week
Release of Macmahon Memorandum on U. S. International
Information Program:
Summary of Memorandum 37
Objections by Reuters, Ltd., to the Memorandum ... 38
Mexican Government Investigates Charges Against American
Firms 39
Death of Grayson N. Kefauver 39
Mail Service With Austria 40
Carolyn Bradley Accepts Visiting Professorship to Chile . . 40
Visit of Brazilian Educator 40
Visit of Salvadoran Musician 40
Sanitary Conventions of 1944: Canada, United Kingdom . 40
(Continued on page It'll)
U. S. SUPERINTENDENT Of IKICUMEN||
f£B .7 1946
Petroleum Facilities Coordinating Committee
By DAVID A. ROBERTSON, Chairman^
D
DBING THE CLOSING MONTHS OF
the war a number of agencies
of this Government were
confronted with the tremen-
dous task of judicious disposal of United States-
owned surphis and lend-lease properties abroad.
The conclusion of hostilities in Europe and Asia
and the desire of the American people to secure
the earliest possible return of our military forces
brought the problem into sharp focus. There was
danger that, under the pressure for haste, dispo-
sition of these properties might be carried out in
a manner inimical to the short-range financial in-
terest of the United States and detrimental to the
long-range commercial and political foreign poli-
cies of this Government.
The properties involved vary widely in char-
acter and in the aggregate represent a tremendous
dollar value. From a post-war economic and se-
curity standpoint, one of the vital sectors of our
intei'ests is in the field of petroleum facilities con-
structed or lend-leased abroad to service air, naval,
and military bases and outposts, as well as to
facilitate the procurement of petroleum from the
oil fields and refineries of the United Nations.
To assure that disposal in this field would be
orderly, as well as prudent, and that it would be
in accordance with the interests and policies of
the American people and Government, the Secre-
tary of State in August 1945 invited the Secre-
taries of War, Navy, and Commerce, the Petro-
leum Administrator for War, and the War Ship-
ping and Foreign Economic Administrators to
join in the establisluneut of the Petroleum Facili-
ties Coordinating Committee (PFCC).
Each agency indicated the importance it at-
tached to participation in the functioning of the
Committee by designating as its representatives
key personnel engaged in administering its petro-
leum activities. These member officers with their
alternates are as follows :
State
David A. Robertson, chairman. Assistant
Chief, Petroleum Division ■'■'■■
DAvro E. LoNGANECKER, Petioleum Division
(alternate)
Col. Sidney Grtjneck, Director, Fixed In-
stallations Division, Office of Foreign
Liquidation (FLC) (member)
Leo F. Connell, Petroleum Consultant,
Fixed Installations Division, FLC (alter-
nate)
Albert E. Ernst, Chief, Petroleum Division,
FLC (member)
Critchell Parsons, Assistant Chief, Petro-
leum Division, FLC (alternate)
Wa7-
Brig. Gen. H. L. Peckham, Director, Fuels
and Lubricants Branch (member)
Col. James H. Wright, Deputy Director,
Fuels and Lubricants Branch (alternate)
Navy
Rear Admiral A. F. Carter, Director, Petro-
leum Operations (member)
Lt. Commander Ross B. Nelson, Assistant to
Admiral Carter (alternate)
Comm''erce
H. B. McCoy, Chief, Division of Industrial
Economy (member)
George W. Muller, Chief, Industrial Proj-
ects Unit (alternate)
Petroleum Administration for War — Interior
Edward B. Swanson, Director, Research
Division (member)
War Shipping Administration
E. A. Hohmeyer, Manager, Vessel Opera-
tions Bunker Fuel (member)
Provision was made for the attendance of ob-
servers and consultants from other agencies when
'Mr. Robertson is Assistant Chief of the Petroleum
Division, OflSce of International Trade Policy, Department
of State.
4
DEPARTMENT OF STATE BULLETIN
cases of interest to them were being considered,
providing the Committee with expert advice. On
this basis the Surplus Property Administrator
designated his Deputy in Charge of Foreign Dis-
posals, Eric Taff, to serve as permanent observer
with PFCC.
The proposal to establish the Committee, for
the purpose of implementing applicable United
States foreign policy and coordinating related ac-
tivities and policies of all interested United
States agencies in the disposal of lend-lease and
surplus petroleum facilities costing in excess of
$100,000, received prompt and enthusiastic ap-
proval from the heads of the agencies consulted.
The functions of the Committee are as follows :
1. To expedite listing of petroleum facilities by
owning agencies (see -Budget-Treasury Regula-
tion No. 5).
2. To collate, by countries or geographic divi-
sions, and to examine lists of petroleum facilities
prepared by owning agencies, taking preliminary
notice of equipment declared excess and likely to
be declared surplus.
3. To ascertain and consolidate the views of the
War and Navy Departments on any military as-
pect and the views of the interested United States
civilian agencies on any commercial aspect or in-
terest in acquiring ownership or control of the
petroleum facilities involved.
4. To formulate, on the basis of the examina-
tion referred to above, appropriate recommenda-
tions to the pertinent disposal agency (such as
the Office of the Army-Navy Liquidation Com-
mission) on specific cases involving the disposal
of surplus petroleum facilities, such recommenda-
tions being designed to implement United States
commercial foreign policy whether disposal is
recommended through (1) bulk sale to a foreign
govermnent, or (2) sale to private interests on a
competitive-bid basis, under applicable rules and
regulations governing such sale.
James Q. Reber has been detailed from the
Department of State's Central Secretariat to serve
as Executive Secretary of the FFCC.
Within a period of weeks the PFCC was fully
organized and a number of cases were acted on
which for some time had been pending interde-
partmental examination and clearance. The need
for invoking Budget-Treasury Regulation No. 5 to
ascertain the identity of petroleum facilities con-
structed abroad by the United States agencies was
resolved by the voluntary compilation of lists by
owning agencies on a uniform basis approved by
PFCC.
Arrangements were made to consider petroleum
facilities when reported excess to the needs and
responsibilities of the theater commanders and
prior to being declared surplus by the owning
agency. In addition, steps were taken through
the Foreign Operations Committee of the Petro-
leum Administration for War to inform the
petroleum industry of the nature and extent of
these facilities, in many cases prior to their being
reported excess.
The Secretary of State, acting on a suggestion
of the Secretary of War, approved the extension
of the PFCC terms of reference to cover petro-
leum equipment as well as fixed installations in
order to assure coordination in their disposal.
This extension proved wise since it made it pos-
sible for the purchasers of an installation to obtain
auxiliaiy equipment essential to an integrated
operating unit, thereby enhancing the value of the
installation to prospective purchasers and insur-
ing against stripping the facilities of necessary
operating and replacement equipment.
The Committee has considered, has cleared from
an interdepartmental standpoint, and has made
disposal recommendations on many types of fa-
cilities throughout the world. Representative of
cases acted on are major pipelines in China,
Burma, India, Egypt. Canada, Italy, and France ;
a refinery in Canada : bulk stations in Africa along
the south and central routes of the Air Transport
Command; tank farms in Brazil, New Guinea,
Tulagi, and Kenya ; drum and can plants in Pales-
tine, Eg3'pt, Iran, England, and India ; and many
others. These facilities have received consideration
in the order of their urgency arising from (1) a
declaration of excess by the theater commanders
or a declaration of surplus by the owning agency
for the purposes of deploying troops and of aban-
doning bases, (2) current negotiations of bulk dis-
posals by this Government, and (3) agreements set-
ting forth the terms under which disposals are to
be conducted in a foreign country.
The number and complexity of cases relating to
specific petroleum facilities have necessitated a
twofold expansion of the Committee. A working
subcommittee has been created to establish and
maintain a list of countries in the order of
priority for PFCC action on surplus disposals,
to prepare material, to formulate recommenda-
JANUARY 6 AND 13, 1946
tions for PFCC consideration, and to perform
other work as directed by PFCC. In addition,
an advisory group composed of representa-
tives of other offices of the Department of
State has been designated to assist the chairman
of PFCC in determining the interest of the De-
partment, from a political- and commercial-policy
viewpoint, in the disposition of petroleum installa-
tions before the Committee.
Arrangements have been made also to work
closely in liaison with the Air Coordinating Com-
mittee, an interdepartmental committee similar to
PFCC established to determine the post-war com-
mercial interests of this Government in airfields
abroad, for the primary purpose of coordinating
the disposal of aviation-fuel storage with the air-
ports they service.
The PFCC, in summary, has provided a forum
for discussion of and cooperation in the related
activities or policies of the member agencies. It
has obtained lists of 152 facilities scattered over
53 foreign countries, coordinated disposals of fa-
cilities with equipment, and informed the Ameri-
can industry of the available facilities. Of first
importance, the PFCC has taken steps to eliminate
the possibility of discrimination against American
nationals by foreign governments in favor of their
own nationals. To this end it has obtained agree-
ment from the Foi-eign Liquidation Commissioner
that his discretionary authority under SPB Regu-
lation No. 8 will be so construed as to eliminate
the possibility of such discrimination in any dis-
posal arrangements. His field commissioners have
been instructed accordingly.
The PFCC has kept abreast of United States -
United Kingdom current negotiations, coordi-
nated its activities with these developments, and
provided a channel f oi- the expression of the views
of interested United States agencies with regard
to the petroleum aspects of the negotiations.
Consideration is pi'esently being given to the
coordination of the disposal in the United States
of surplus facilities and equipment located in this
country which may be purchased for export, with
disposals of similar surpluses abroad. Other
measures under consideration will facilitate the
l^rompt and wise disposal of United States - owned
surplus abroad and tend to promote international
trade and the participation therein of American
nationals consistent with United States commer-
cial foreign policy.
Resumption of Relations
With Siam '
The Department of State is pleased to announce
that diplomatic relations with Siam were resumed
on January 5 when the Secretary of State re-
ceived Luang Dithakar Bhakdi, Charge d'Affaires
of the Siamese Legation, and Charles W. Yost
became Charge d'Affaires of the American Lega-
tion at Bangkok. It is understood that Mr. Yost,
who is now in Bangkok, will be formally received
by M. R. Seni Pramoj, Pi-ime Minister and Min-
ister of Foreign Affairs of Siam.
This marks the formal reestablishment of those
friendly relations which have characterized Sia-
mese-American association for over a century. We
look forward to even closer friendship in the fu-
ture and to the early admission of Siam to mem-
bership in the United Nations Organization.
Resiunption of diplomatic relations between
Great Britain and Siam took place at the same
time. This Government welcomes the reestablish-
ment of friendly relations between Great Britain
and Siam following the recent termination of the
state of war between the two countries.
Although not a party to the British-Siamese
negotiations leading to the recently concluded
agreement terminating the state of war between
Great Britain and Siam, this Government had
naturally a deep interest in the negotiations. For
a period of several months this Government was
in friendly conversation with the British Govern-
ment concerning the proposed terms of that agree-
ment, and it made known to the British Govern-
ment its views on a number of points which it
considered either of direct concern to the United
States or of general concern to all nations inter-
ested in the stability and prosperity of southeast-
ern Asia. This Government was pleased with the
ready and cordial response the British Govern-
ment accorded the views which we presented.
The recent conclusion of the British-Siamese
state of war and the resumption of diplomatic
relations with Siam by the United States and
Great Britain are important steps looking to the
restoration of a peaceful, stable world in which
all countries will work closely together within the
United Nations Organization.
' Released to the press Jan. 5.
DEPARTMENT OF STATE BULLETIN
Conference of Lecturers on
International Affairs
PARTICIPANTS AND PROGRAMS
The Conference of Lecturers on International
Affairs sponsored by the American Platform
Guild, in cooperation with the Division of Public
Liaison, Department of State, held a meeting on
the morning of January 3 at the Department of
State. The morning session was opened by Julius
Bloom, vice president, American Platfonn Guild,
and director, Brooklyn Institute of Arts and Sci-
ences. Mr. Bloom read a message from the Secre-
tary of State to the Conference.
The theme of the morning session was "United
Nations Organization — Since San Francisco and
Next Steps". The panel presenting this theme in-
cluded : Donald C. Blaisdell, Associate Chief, Di-
vision of International Security Affairs, Depart-
ment of State ; Morse Salisbury, Director of Public
Information, UNRRA; Gove Hambidge, Execu-
tive Director, FAO ; John Gambs, Adviser on In-
ternational Labor Relations, Department of
Labor; E. R. Marlin, Liaison Officer, PICAO;
Kenneth Holland, President, Inter-American
Educational Foundation, Office of Inter- American
Affairs.
The theme of the afternoon session was "Eco-
nomic Foundations for Peace", with a panel of
the following gentlemen presenting the theme:
Dean Acheson, Under Secretary of State; Clair
Wilcox, Director, Office of International Trade
Policy, Department of State; James L. McCamy,
Director, Office of World Trade Policy, Depart-
ment of Commerce ; Charles Bunn, Adviser, Divi-
sion of Commercial Policy, Department of State ;
Raymond Mikesell, Chief Economic Analyst,
Treasury Department. Following this session
there was a series of six round-table discussions
with various geographic divisions of the Depart-
ment of State.
The morning and afternoon sessions were closed
to the public, but the speeches at the evening din-
ner at the Statler Hotel, which started at 8:30,
were open to the public and press. Speakers at the
dinner included: William Benton, Assistant Sec-
retary of State ; Henry Seidel Canby, editor, Sat-
ttrday Review of Liteimture, visiting lecturer in
Australia under auspices of OWI ; C. D. Jackson,
director, international division. Time and Life
publications, formerly field representative of OWI
in North Africa and western Europe; Herbert
Agar, director, British Division, OWI, former
editor of the Louisville C'owrier- Journal.
MESSAGE FROM THE SECRETARY OF STATE ^
It is with a profound sense of the importance
of public meetings to the success of our common
efforts to build a world of peace, that I give my
best wishes and greetings to the American Plat-
form Guild. As you all know, our Nation is com-
mitted in its foreign policy to achieve world-wide
political, social, and economic cooperation through
the United Nations Organization. On the success
of its efforts depends the security of the people
of all countries, including our own. The success of
our own share in this cooperative undertaking de-
pends upon the understanding and support of the
^ Released to the press Jau. 3.
American people. This can be obtained only by a
continuous and effective two-way communication
between the people and their Government. The
people at all times must have the facts; the Gov-
ernment at all times must have their views.
The Department of State is eager to supply es-
sential information on America's part in world af-
fairs. Oftentimes, this information can best be
explained by a speaker at a public gathering. We
are also eager to receive as wide and as complete
an expression of public opinion as possible. In
this process it seems to me that the lecture platform
has a unique and indispensable role.
JANUARY 6 AND 13, 1946
Can America Afford To Be Silent?
By ASSISTANT SECRETARY BENTON
I WELCOME this opportunity to talk with Amer-
ica's lecturers on international affairs. You
have a professional as well as a personal interest in
this country's first peacetime program of inter-
national information and cultural exchange. I
shall explain to you as simply as I can why the
United States is developing such a program and
what the State Department is now preparing to do.
Thanks in part to your efforts, year in and year
out, the citizens of the United States hold high
rank in the quantity and quality of their informa-
tion on world affairs. To you on the lecture plat-
form, the American people have addressed in their
own voices some of the misunderstandings, preju-
dices, and fears which separate the peoples of the
earth in spirit one from another.
No other country has such variety of public
forums, such a free press, and such a wealth of
radio programs expressing divergent points of
view. Among the world's two billion men and
women, outside the United States, only the fortu-
nate and favored few have the opportunity to read
or to hear about us. Compared with our knowl-
edge of them, insufficient as it is, their understand-
ing of the United States is tragically one-sided or
inadequate.
There was a time, not so long ago, when some
of us trusted in the rapid development of com-
munications and transportation to make America
known everywhere as we wished to be known and
should be known — ^just as we are.
We no longer pin such hopes upon the parapher-
nalia of physical progress. We have seen the arts
of planned destruction leap far ahead of the peace-
ful arts of communication and friendly private
interchange.
In harmony the invisible electrons can be made
to send Beethoven's symphonies around the world.
Or in disharmony they can be made to war upon
each other, setting the elements on fire in the ulti-
mate disintegration of the earth.
Twice in this century the great mass of the
world's people, in sad ignorance of each other,
have fought world wars of rapidly accelerating
destruction. Up until the last moment, those who
see the issue must keep working for the victory
of mutual understanding in this third and last
heat of the century's race against disaster.
Humanity will not obliterate itself if it can
learn how to prevent it. Do you not sense in your
audiences a feeling of urgency, of an almost des-
perate desire to understand more — so that they
can somehow help to avoid the disaster? The
same spirit of urgency is abroad everywhere,
among the peoples of other lands as well as our
own.
Thus you and I are working together. I suspect
"I need thee every hour". In the State Depart-
ment, we ask your understanding of the assign-
ment President Truman has given us, to build in
the hearts and minds of foreign peoples every-
where, in his words, "a full and fair picture of
American life and of the aims and policies of the
United States Government".
The national security of the United States is
directly concerned in this objective. Fear and
misunderstanding of America can cost us the
friends and allies we need in time of crisis. We
must not rely only on the friendship of govern-
ments and rulers. History shows the weathervane
characteristics of such friendships. We must seek
the friendship of peoples — their understanding of
our own people and of our free society. It is the
peoples of the world in whom we must put our
trust.
The strong nation too readily becomes hated
and feared by all the rest — and we are today the
strongest nation since gunpowder was invented.
Do our returning troops report everywhere a ris-
ing tide of warm affection and esteem for the
United States? I am afraid they report, all too
often, just the contrary. Our very virtues, in
fact, seem often held against us.
^ An address delivered by Mr. Benton at a meeting of the
American Platform Guild in Washington on .Tan. 3 and
released to the press on the same date.
8
DEPARTMENT OF STATE BULLETIN
Distorted impressions are arising even in the
ai'eas which we thought knew us best. Lord
Keynes was quoted in London as saying recently,
after three months of negotiation in Washington,
"What a depth of misunderstanding governs the
relationships between even the friendliest and most
like-minded nations". In large regions of the
globe we are but a hazy legend of military and
naval power, of wealth, luxury, and carefree irre-
sponsibility.
You may remember that the Nazis, before the
war, told their people that "we do not care whether
or not Germany is hated, so long as she is feared".
That was logical enough for those who boasted of
their faith in force. But what of those who place
their faith in justice?
If there were time enough, we Americans could
wait for misunderstandings to straighten them-
selves out. Actions do speak louder than words.
But actions also speak through words, as this
group well knows, and the words must be clearly
and widely understood. Thus, to present '"a full
and fair picture of American life" we shall have
to explain our actions all over the world. We can-
not rely on others to explain them for us. We
must keep that explanation fresh and timely, a
continuous complement to our diplomatic and
political action.
The State Department does not intend to en-
gage in so-called "propaganda". We shall profit
most by portraying ourselves frankly, the bad
with the good. Our democracy is far from perfect.
The United States has its own problems of poverty
and maladjustment. We have much to learn our-
selves— as we have much to teach.
Wlio is going to carry out the proposed pro-
gram? We in the State Department know that
private interests are eager to do more than they
have ever done. They are seeking world markets.
The total volume of their efforts represented by
news carried by the commercial wire services, by
foreign editions of magazines and books, by
movies, tourists, and commercial contacts will
amount to vastly more than the Government's con-
tribution. The Government's job will be merely
to fill the gaps — though the gaps are important
and often crucial.
For example, there are many places of con-
siderable diplomatic importance — you can often
call them the hot spots or tinder-boxes of the
world — which do not have any American wire
services. AP, UP, and INS just don't get in.
Further, newspapers abroad often operate under
principles which seem strange to us. I remember
the OWI fieldman in the Mid-East, who took his
documents from the United States to the editor of
a local paper and offered them free of charge. The
Arab gentleman took them gladly and then asked
what was for him a supremely logical question,
"How much will you pay me to print them?"
In some nations, where the mass of the popula-
tion has little power over foreign policy, and less
undei'standing of foreign ideas, our diplomatic
target may be small groups far too few in number
to provide a profitable market for American
private enterprise. Yet such groups may be the
only channels through which American informa-
tion, and the ideals of world collaboration, can be
introduced to the people as a whole. Through our
missions abroad, we can reach such groups with
information about America.
Some of the best work done by the OWI and
the OIAA was preventive and could be tested only
by the misunderstandings which did 7iot arise.
Quite recently, in Turkey, after President Tru-
man had sent a message to Congress regarding
the succession to the presidency, a story circulated
that Pi'esident Truman planned to resign. OWI
men were able to supply the background informa-
tion about the workings of our govermnental sys-
tem, which promptly scotched the story. The
tragedy of President Wilson and Versailles was
in part the result of wide-spread ignorance abroad
of the workings of our Government. Background
information, which is unprofitable for our wire
services to handle, may be as important to the
peace of the world as the fast and accurate han-
dling of spot news.
A foreigner who has read of Chicago's murders
but never of its university, who has seen enter-
tainment films but never a documentary film of
American life, may have a most distorted view of
America. The State Department proposes to sup-
plement the picture of America currently presented
abroad by private enterprise with background doc-
umentary material, with documentary films, and,
finally, with short-wave radio.
Some regions, such as the Balkans, can be reached
with news about America by no other means than
short-wave radio, an operation which is not profit-
able for private enterprise. The future control
and operation of international radio is being
I
JANUARY 6 AND 13, 1946
studied in the Department and recommendations
will be made to the President and Congress within
the next few months. Meanwhile, the State De-
partment is carrying on with this powerful new
medium largely developed during the war. It is
essential that the radio voice of America shall not
be silenced.
Perhaps the most hopeful area for the long pull
is the exchange of students, professors, scientists,
and technicians. This again is not an area for
private enterprise. There is no substitute for face-
to-face contacts. The State Department is now a
coordinating agency for 26 departments and bu-
reaus of the United States Government that have
foreign-exchange programs. We plan a flow of ex-
perts and special information to other nations on
such subjects as American methods of soil conser-
vation, rural electrification, public-health safe-
guards, child care, and adult education. Foreign
specialists will come for training in our own State
and Federal governments. These programs will
be worked out cooperatively with other govern-
ments; they will share responsibility and costs.
In the same spirit, we welcome the establishment
of foreign-information services within our own
borders. We shall seek to encourage a two-way
flow of information and culture across national
boundaries.
Complementing our own overseas information
and cultural activities will be the work of the
proposed United Nations Educational, Scientific
and Cultural Organization, which has the basic
purpose of promoting understanding on a world-
wide basis. UNESCO will work through and
with the existing informational and cultural pro-
gi-ams — both governmental and non-govern-
mental— of the various United Nations.
UNESCO will have the essential task of pro-
moting collaboration among these programs.
A bill giving the Department of State legisla-
tive authority to conduct such world-wide ex-
changes, and its proposed overseas informational
and cultural activities, has been unanimously ap-
proved by the House Committee on Foreign Af-
fairs and will be reported to the House immedi-
ately following the holiday recess. It is hoped
that the Congress will then approve the proposed
program in every detail. The work will be, and
should be, under full public scrutiny. We shall
court the kleig lights and abide by them. We shall
679191 — 46 2
welcome any help you can be in encouraging public
discussion of our plans and purposes.
On January 1, a single American information
and cultural-relations program under my direc-
tion replaced a number of scattered and inde-
pendent activities. It has a rich backlog of ex-
perience gained in the war, a small group of highly
trained specialists, a tested communications sys-
tem, and a chain of outlets strung out all over the
world. Arrangements are being made for the
new work in 62 United States diplomatic mis-
sions abroad. Information activities are planned
in 22 additional smaller posts using the part-time
services of regular Foreign Service officers.
We have completed, in the months since my ap-
pointment, the job of cutting down and reshaping
the former OWI and OIAA for merging with
established divisions in the State Department into
a permanent peacetime organization. On July 1,
1945 these two wartime agencies employed 5,782
people at home and abroad, exclusive of native
foreign -born personnel. By June 30, 1946 this
number will have been reduced by almost 60 per-
cent. Of these only some 400 will be public-
affairs officers serving regularly in our missions in
some 60 countries. They contrast with more than
1,600 during the war. The cable- wireless service
of the OWI has been reduced to one sixth its war-
time wordage. The radio activities of OWI and
OIAA have been physically merged in New York
and San Francisco.
A part of our responsibility is a special emer-
gency information program, set up to handle our
responsibilities in the occupied areas of Germany,
Austria, and Japan. We are undertaking similar
emergency work in areas of China and southeast
Asia where the Japanese have only recently been
expelled. These will be temporary activities, but
they account for a large part of our personnel.
They are not to be regarded as regular parts of an
overseas program.
The permanent peacetime j^rogram will operate,
in the early stages at least, along nine channels of
action. I shall merely list these for your atten-
tion— as a summary of preceding remarks. The
more colorful details will be filled in by the
gentlemen of the panel, who can draw upon their
personal experiences to answer your queries.
First, there is the exchange-of -persons pro-
gram— the students, professors, and distinguished
visitors, who will be brought to this country and
sent abroad in increasing numbers. In 1946 some
10
DEPARTMENT OF STATE BULLETIN
10,000 foreign students will be studying in the
United States; we expect at least 20,000 in 1947.
Most of these are here on their own, financing
themselves.
Second, the maintenance and servicing of
American libraries of information in 60 countries
abroad. Elmer Davis told me that nothing dur-
ing the war so strongly warranted continuing
support as these libraries. Long lines of eager
people seek news of America, each day and every
day, from the documents and books in these
libraries connected with our missions throughout
the world.
Tliird, a daily wireless bulletin to carry to our
diplomatic missions the full texts, or textual ex-
cerpts, of important official announcements. This
bulletin keeps our diplomatic officers informed of
events at home.
Fourth, a documentary service to supply our
missions, by mail, with background material, bio-
graphical sketches, and information about life in
America, together with a limited service of still
photogi'aphs from Government sources.
Fifth, photo-exhibits, displays, and film-strips
for non-commercial use in foreign countries. Our
film-strips today are being shown to 12 million
Chinese school children monthly.
Sixth, the continuation of the bimonthly illus-
trated magazine, America, in the Russian lan-
guage for distribution in Russia where private
foreign magazines are barred.
Seventh, acquiring, adapting, and scoring in
foreign languages a continuing series of newsreels
and documentary films about the United States, for
non-commercial showing to foreign audiences".
These are today being shown to 4 million to 5 mil-
lion people monthly in Latin America.
Eighth, the on-the-spot work of small staffs in
our missions in 62 countries, which will provide the
tact, judgment, and human warmth which alone
can make our pi'ogram effective.
Ninth, and last, the operation, in 1947 at least,
of short-wave broadcasting covering virtually the
whole world.
All these nine add up, I think, to a favorable
beginning of a permanent, continuous, two-way cul-
tural and informational exchange which may
eventually do more for world security than a fleet
of battleships — and at a tiny fraction of the cost.
Its greatest virtue in my opinion is that it is
ready to go to work in the here-and-now. Events
move too swiftly for us to be comialacent when
serious misconceptions of America take root
abroad. We know that our intentions are good,
but international cause and effect are so closely
coupled that the outbreak of war at any one spot
on the globe might ripen within the hour into the
destruction of cities thousands of miles away. I
am using no empty figure of speech when I say
that the fuse of disaster is lit and burning stead-
ily. If areas of mass ignorance and ill-will are
permitted to remain in the world, and if the fuse
reaches and inflames them, these may act as deto-
nators for an explosion that could engulf us all.
The hope for the future lies in eliminating the J
areas of mass ignorance and ill-will. We must *
combat them as never before.
Tliat is the objective of the program I have out-
lined tonight. That is an objective on which I
hope we can all unite — the Congress, the State De-
partment, the press, radio, and motion-picture in-
dustries— yes, the lecturers and their audiences —
and the people of the United States and peoples
everywhere throughout the world.
Experts To Join General
Mac Arthur's Staff'
A State Department - War Department group
of experts was scheduled to leave Hamilton Field
on Januaiy 3 for Tokyo to join General Mac-
Arthur's staff. The group, headed by Corwin D.
Edwards of the State Department, will procure
data and make studies for use in comiection with
the implementation of Allied economic control
policy in Japan. Other members of the group
include James M. Henderson, William C. Dixon,
and Samuel E. Neel, Justice Department; Robert
M. Hmiter, professor of law, Ohio State Univer-
sity ; Robert B. Dawkins, Federal Trade Comniis-
sion; Benjamin B. Wallace, Tariff Commission;
and Raymond Vernon, Securities and Exchange
Cormnission. The groujD is expected to submit its
report in three months.
' Released to the press Jan. 3.
JANUARY 6 AND 13, 1946
U
America — As Others See Us
RADIO BROADCAST
Participants
William Benton
Assistant Secretary of State in Charge of
Public Aflfairs
C. D. Jackson
Managing Director, Overseas Editions and
Staffs, Time and Life
Herbert Agar
Henry Seidel Canby
Editor, Saturday Review of Literature
Julius Bloom
Director, Brooklyn Institute of Arts and
Sciences; Vice President, American Plat-
form Guild
Announcer : This evening the Mutual Network
takes you to Washington, D. C, where a group of
outstanding American lecturers has just concluded
a day-long conference on international affairs.
The meetings, held in cooperation with the De-
partment of State, were sponsored by the Ameri-
can Platform Guild — a national organization rep-
resenting lecturers and their sponsors. They cov-
ered the whole range of today's most pressing
international issues. In the next half hour you
will hear some of the highlights of that discussion,
brought to you by five Americans uniquely quali-
fied in the field of world affairs. The chairman
of tonight's broadcast on "America — As Others
See Us" is Julius Bloom, vice president of the
American Platform Guild. Mr. Bloom is director
of the Brooklyn Institute of Arts and Sciences
and in that capacity is in charge of one of the
largest public lecture programs now conducted in
the United States.
Bloom : Thank you," Mr. Studley. It is often
said that the world does not understand the United
States, that people of other nations have strange,
mistaken notions about us. I think this is true.
It is also true that we Americans must plead guilty
to not knowing too much about the rest of the
world and its people.
The men who are taking part in this discussion
tonight have been or are presently engaged in the
task of international information. That task has
taken them, within the past epochal years, to Ger-
many and Australia — to Britain and Algiers.
There, as America's spokesmen, they have seen the
reflection of America that dominates the world
today — an image often twisted beyond recogni-
tion by the distortions of Axis propagandists; a
mirage built up sometimes beyond all possibility
of fulfilment by the desperate hopes of under-
ground fighters, cut off from outside contacts by
long years of enforced isolation. These are some
of the men and women you will hear about tonight.
You will hear Commander Herbert Agar, for-
mer editor of the Louisville C owrier-J owrnoH^ who
served as head of the British Division of OWI
for more than two years and has just returned to
America during the past week.
With us tonight also is C. D. Jackson, managing
director of the overseas editions and staffs of Time
and Life magazines. Mr. Jackson's war job was
to serve as OWI's top representative with the
Army's Psychological Warfare Branch, in North
Africa, in London, in France, and in Germany.
Recently returned fiom a wartime lecture tour
of Australia and New Zealand and here with us
this evening is Dr. Henry Seidel Canby, one of
the editors of the Satut'day Review of Literatv/re
and best known to Americans, perhaps, as one of
the judges of the Book-of-the-Month Club.
And in addition to these men who have such
direct knowledge of the Government's information
work during the war is the man most concerned
with the task to come. Assistant Secretary of State
William Benton, the man whose day-to-day job is
to bring truth about America to the four corners
of the earth. Mr. Benton, would you like to start
us off by telling us something about your job and
how you plan to do it ?
Benton : Before talking about what we are do-
ing I should like to say just a word about the why
of our program. We have our sights fixed on a
very definite objective. In the first place, we are
trying to dispel the doubt and misunderstanding
' Released to the press Jan. 3.
12
DEPARTMENT OF STATE BULLETIN
which breed wars. We see the overseas informa-
tion program as vital to our national security. In
fact, I believe that the very modest expenditures
we propose to make if Congress approves — to
tell the truth about America and American foreign
policy — will prove a much more important invest-
ment in enduring peace than another cruiser or
two for our Navy or more tanks or planes for our
Army.
Bloom : In other words you are saying that un-
derstanding is a kind of force.
Benton: There is a tremendous thirst for
knowledge of America — about us, our customs,
our way of life, and above all our intentions toward
the rest of the world. Modern means of speedy
communication compel us to change our concep-
tion of diplomacy. Today it is not so much the
diplomat who makes de<;isions but, to an increasing
degree, the people themselves. They are on the
march all over the world. And they want to
know. Since you have pitched this discussion in
terms of people, Mr. Bloom, I'd like now to ]nck
up that cue.
The individuals who come to my mind happen
to be French and Italian. I haven't met them per-
sonally, but I have seen some of the letters they
have been writing, letters addressed to the United
States Government's radio station, "The Voice of
America".
We have a daily half-hour question-and-answer
broadcast in French called "A Vos Ordres''' and
a similar one in Italian called "^?" Vostri Ordmi",
both of which mean "At Your Service".
About 300 letters a week are coming in from
France as a result of the French program, and an
equal number from Italy. Some of the questions
are answered on the air ; the rest are answered by
our Rome and Paris outposts. Through this cor-
respondence we are certainly getting a view of our-
selves through French and Italian eyes.
Bloom: Is it in focus?
Benton: Far from it; but, through our re-
plies, we are doing our best to straighten it out.
You'll see the i)roblem if I quote just a few of
the questions. Here's one, for instance, from a
listener in Valguenera, Italy, asking whether
American gangsters are really as prevalent as
American films and mystery stories have led him
to believe. A gentleman in Rome, equally con-
cerned with the American crime situation, wants
to know what weapons are used by our police in
gang wars. A thrifty Frenchman inquires as to
whether it is possible to sustain life in de-luxe
America on the equivalent of his salary of 10,000
francs a month.
From Naples we get a reflection of the common
European notions as to our loose morality when a
listener asks whether it is true that any American
can get a divorce without serious reason on pay-
ment of $200.
Bloom : Are any of the audience concerned with
questions of American foreign policy?
Benton : Most decidedly. We recently received
a long communication from an industrial agent
in Lille, France, expressing concei-n that America
will soon revert to the isolationism which caused,
so he says, the second World War. Why, he asks,
if you are genuinely interested in future peace, do
you treat France with such "revolting casualness"?
Bloom : I suppose that sort of letter reflects the
disappointment of the French people with the
hardships that followed liberation. Are most of
the letters bitter in tone ?
Benton : By no means. Many of them simply
reflect curiosity. There was, for instance, the
Dijon housewife who wanted to know whether
French is still the native tongue of Woonsocket,
R.I.
And not all of our correspondents suffer from
misconceptions about America. Many simply
want i^ractical information. For instance, a Cath-
olic priest in Normandy wrote to ask about the
latest developments in the cultivation of apples
and pears and about new musical compositions for
his organ.
Bloom : Orchards and organs — rather a tall
order ?
Benton : Not at all ; our Department of Agri-
culture was readily able to supply us with the
latest fruit-growing information ; and our friends
in the musical world were happy to cooperate with
lists and scores of new organ compositions.
Bloom : It is correct to assume, is it not, Mr.
Benton, that this sort of correspondence is simply
a by-product of the Government's broadcasting
activities. The programs themselves do a lot to-
ward presenting us to the world, do they not?
Benton: That's right. The programs are all
designed for that purpose. We are now running a
radio series called "America Since 1939" which
fills in the great gaps in the knowledge of Euro-
peans who have been cut off from us for five years ;
JANUARY 6 AND 13, 1946
13
on another series called "America Speaks", im-
portant books published in the United States are
dramatized. There are musical programs, featur-
ing the works of American composers and drama-
tizations of representative American plays. Fur-
ther, we send similar printed material abroad to
our missions for distribution by them to all who
are interested.
Bloom : Just how extensively does the Govern-
ment plan to stay in the radio business, Mr. Ben-
ton?
Benton: That's a question I can't really an-
swer yet, Mr. Bloom. The whole problem of short-
wave radio is being studied by the Government.
Since there is no money to be made in overseas
broadcasting, Government underwriting will be
needed if the "Voice of America" is to stay on the
air. We have reduced the languages in which
we broadcast to less than half the number used
during the war. We know that it is important
for the "Voice of America" to continue to be
lieard — especially in regions where there are virtu-
ally no newspapers because of paper shortages and
lack of press services, or where censorship prevails
and where short wave is our only means of direct
access with news for the millions of people who
want to know about us.
Bloom : Mr. Jackson, during your overseas serv-
ice in psychological warfare you saw at first hand
what the American radio meant to the people of
occupied countries, didn't you?
Jackson : I surely did, Mr. Bloom. Allied ra-
dio did a tremendous job which could have been
performed by no other medium of information.
But it was a limited job. We must remember that.
Radio brought news and instructions to resist-
ance forces. But it could not supply the vast
wealth of background information — the kind of
information that really builds our knowledge of
the world. It is difficult for us in the United
States to realize the extent to which the lights
went out in Europe. That is more than an empty
expression. It was a total blackout on informa-
tion.
Bloom: Then you found among liberated peo-
ples the thirst for knowledge of which Mr. Benton
spoke ?
Jackson: To an incredible degree. It is a
thirst which we must try to slake by every method
which will commend itself — ^by means of radio,
the written word, through exchange of peojjle. To
illustrate what I mean, I would like to talk for a
minute about five Norwegians.
Bloom: Any special Norwegians?
Jackson : Very special Norwegians. They were
five Norwegian journalists who made a coast-to-
coast tour of the United States this fall as guests
of the United States Government. Since they
came here well stocked with the customary supply
of misconceptions about the United States, they
were wide-eyed at much that they found. For in-
stance, they were astonished to discover quite a
numbeir of really nice girls in New York — having
been prepared to find nothing but delinquent
bobby-soxers.
To give you a rough idea of the ground they
covered — in one week they took a look at Dali
paintings in the Museum of Modern Art in New
York and at the insides of a pig at the Wilson
Packing Company in Chicago. They saw the be-
ginning of an automobile on the assembly line at
River Rouge and the beginning of an automobile
strike at UAW-CIO headquartei-s in Detroit.
They talked with hundreds of Americans about
international relations, about what should be done
with Germany, the length of cigarette butts in
America, the way Life magazine comes off the
Lakeside Press, and the way steel comes out of the
mold in Gary, Ind.
Bloom : And I suppose the Government was
well satisfied with the reports they sent home.
Jackson : As a matter of fact no one connected
with the American Government saw the reports
until the clippings from the Norwegian papers
were mailed here. The Norwegians filed their
stories in sealed envelopes, telling what they saw as
they wished to say it. The philosophy behind such
tours is not to furnish the visitors with cut-and-
dried press releases, but to let them see America
as it is. We have plenty of confidence that the
whole — the complete — story of America is a great
one that we are proud to have told. All we tried
to do was to make the full, rounded picture avail-
able to them — not just one side. And we have
ample evidence that this policy pays rich dividends
for us. This summer, for example, six Belgian
journalists made a swing of the country as the
Government's guests. One of them sununed up
the results of the trip better than I could. I'd like
to quote what he said :
"We never really knew what America was like
until we came over here. We had heard of your
14
DEPARTMENT OF STATE BULLETIN
achievements but I suppose we did not believe it.
Now we know it is true."
We had the same experience with a group of
French newspapermen who came to the United
States. At the beginning of the trip several of
them were skeptical about, if not hostile to,
America. You can imagine the effect on their
readers when their stories gradually changed to
enthusiastic accounts of democracy actually
working in the United States and to tributes to the
heroism of American fighting-men.
Bloom : I understand, Mr. Jackson, that this
sort of activity is not entirely one-sided — there
is two-way traffic across the oceans, isn't there?
Jackson: You are quite right — and as you
pointed out tonight part of the job is for us in the
United States to know more about people of other
nations. Americans who travel abroad, whether
as foreign correspondents, as businessmen, or on
official missions, do a two-way job. They bring
the story of the world home to us, and in their
persons they take quite a bit of America abroad.
I have here with me a copy of an Australian
newspaper which pays eloquent tribute to the con-
tributions made by Americans who visited Aus-
tralia during the war years, under Government
auspices. Mention is made of such famous guests
as Dr. Allan Nevins of Columbia; Dr. Dixon
Wecter of the University of California ; and I see
that a special paragraph is devoted to one of my co-
speakers on tonight's progr-am — Dr. Henry Seidel
Canby. Dr. Canby, perhaps this would be a good
moment for you to give us some of the highlights
of your Australian visit.
Canby: The most dramatic day, Mr. Jackson,
the day I shall always remember, was April 12,
or the thirteenth if you had been in Australia.
It was early in the morning when Australia re-
ceived the news that Franklin D. Roosevelt had
died. I arrived just before opening time at the
United States Government Information Library
in Melbourne. Already the telephones were ring-
ing incessantly. Every newspaper editor in Aus-
tralia knew that the Information Library was the
one place he could get the facts he needed. The
questions asked were of every kind: "Does Con-
gress take over the country now?" "How is the
succession decided ?" "Will Mr. Byrnes be Presi-
dent?" "Will another election be held imme-
diately?" "Wliere and what is the electoral col-
lege?" The library staff worked far into the
night, and I stayed to lend a hand until my broad-
cast to the Australian people that noon. Many of
the questions concerned detailed or obscure points
of American history and political custom. Thanks
to the fine shelf of reference books with which the
library is stocked, we were able to come up almost
immediately with authoritative, accurate answers
to every question raised.
The result in next day's Australian press was
amazing. Not only did they carry the full report
of F.D.E.'s death — news which moved and
shocked the Australian people to the bottom of
their hearts — but the papers were, in addition,
veritable encyclopedias of American social and po-
litical traditions and practices. I do not ever re-
call seeing anything like it in the foreign press.
And the fact that these many, sound factual special
articles were put together so rapidly was the direct
result of the information close at hand in the
American library.
Bloom : I can readily see that a good reference
library is a vital part of any overseas information
program, particularly in English-speaking coun-
tries. Are American libraries also maintained .
and used in countries where English is not the
native tongue ?
Canby : By way of answer I should like to read
you a brief excerpt from a letter written by one
of the most enthusiastic users of the American
library in Greece. I have a copy of the letter here ;
the author is Mr. Sophocles A. H. Theodotus of
Amphitritis Street, Paleon Faleron, and is ad-
dressed to Miss Elizabeth Darbishire.
". . . when I first saw the grand and sumptu-
ous office of yours [that description you must un-
derstand is Mr. Theodotus' — the Athens Library
is actually a modest and pretty decrepit two-story
building — but to get back to the letter] I said in my
mind 'Those Americans have many dollars and
waste them' . . . because . . . propaganda
. . . is not at all necessary among the Greeks
. . . . Well, my opinion has been quite super-
ficial .... Wlien I entered for the second time
and saw your library and went upstairs . . .
and saw . . . how Greek youth of both sexes,
and grown people, form every day a file for getting
such English-written American books they have
chosen, even if they speak but a little English, and
with what a perseverance they sit and read
. . . . Well, then I opened the eyes of my soul
and admired the whole idea and blessed the in-
JANUARY 6 AND 13, 1946
15
spiration. Because I understand that in reading
American books the new Greek generation will lit-
tle by little gain and obtain some of the precious
characters that are the privilege of the prac-
tical Americans, and will learn to be serious
and educated . . . and becoming better
citizens. . . ."
May I say that I have heard such statements
in New Zealand and Australia not once but hun-
dreds of times.
Mr. Theodotus writes quite a long letter, and I
will skip over the rest of it except to mention that
he winds up with the suggestion that the United
States open a branch library in the suburb of Old
Faleron where he lives. He even suggests a fine
location — an abandoned police office on the corner
of Amphitritis and St. Alexander Streets. I
wonder, Mr. Benton, whether the State Depart-
ment has acted upon Mr. Theodotus' suggestion?
Benton : I'm afraid our budget just won't per-
mit it. Dr. Canby. Our present plans call for
maintaining altogether 45 libraries in the Eastern
Hemisphere. They are scattered from London to
Shanghai, from Oslo to Capetown. Since we are
limited as to funds the libraries are all in capitals
or key cities where they are assured maximum
usage. We are closing 62 small libraries estab-
lished by OWI during the war.
Bloom : Is there a similar program for the
AVestern Hemisphere ?
Benton: Yes, the State Department will con-
tinue to maintain its libraries in Mexico City,
Montevideo, and Managua and will help to sup-
port more than 25 other American library collec-
tions at key points below the Rio Grande. Herbert
Agar, who is just b<ack from London, where one of
our most efficient libraries functioned during the
war, can tell us at first hand about that one.
Agar: I can underscore everything that has
been said about our libraries, Mr. Benton. And
there is one side of this problem that I would like
to dwell on just a little — and that is the extent to
which people overseas are unable to learn what
they want to learn about us.
Bloom : You mean they have not been receiving
accurate information during the war?
Agar: I mean they haven't been receiving
enough information. And it isn't anybody's fault.
Let's take England for an example. First, be-
cause of war shortages they have mostly four-page
newspapers. How much room does such a paper
have for American news ? Just about enough room
to give a sentence or two to the most sensational
highlights. It isn't the fault of the English that
their tiny little newspapers can't afford to pay
cable charges on the full text of an important
speech in America, or an important state docu-
ment. But they simply can't afford to pay for a lot
of stuff that they haven't room to print. So they
IDay for an excerpt. And the excerpt naturally
plays up everything that is most peculiar or excit-
ing in the speech — not what is most revealing of
American policy or American life. Then suppose
you had to write an editorial for a London paper
on the basis of that excerpt—or make a speech in
Parliament — or comment on the radio. It wouldn't
be your fault if you gave a warped picture of
America. You'd read everything you could get
your hands on, and it wasn't enough. You really
can hardly overemjihasize the need for texts. The
minute word got around that the President was
going to make a speech, I would be besieged by
calls from editors, public figures, and others
wanting to be sure they had the text the minute it
was allowed out.
That's why I think i\\& work we did in London,
to try and get full texts to people on time, before
they commented, was well worth doing. That's
why I hope our Government will go on doing it in
the future. The point is that tlie English — and I
suspect everybody else for that matter — want to
know about us. They want to understand us and
interpret us straight. And, since the world will
be a safer and better place if they do understand
us, I think it's well worth our while to help them.
Blooji : And you think the sort of help you have
been describing will always be needed?
Agar : I do think so, but I want to make it very
clear that I'm not attacking the press or the news
agencies when I say that. No one has wanted to
give the British a false picture of us. Yet the
fact remains that the opening of the opera in
New York and the luxurious glitter of the dia-
mond horseshoe is news and makes the foreign
papers; the problem of an Ohio farm family
trying to pay off the mortgage just isn't news.
The same goes for those celebrated Chicago gang
wars which have been for many years the favorite
Americana of foreign readers, as are Hollywood
elopements, Reno divorces, I'ace riots. This sort
of news sold well overseas, and there just wasn't
and isn't a comparable commercial market for the
16
DEPARTMENT OF STATE BULLETIN
solid, plain, rather humdrum facts of American
living.
Bloom : Well, that brings up the American
movies — are they an asset or a liability ?
Agar : I have no intention of belaboring Holly-
wood. But the fact remains that films which were
designed and made primarily as entertainment for
American audiences have created a strange im-
pression of us abroad. At home, we see Betty
Grable as a stenographer on the screen, elegantly
gowned by Adrian. We know it's simply make-
believe because we see real stenographers in the
subway every day. Overseas, the effect is some-
thing else again, and one of the problems we are
up against is the popular delusion abroad that
Americans live in incredible luxury.
Bloom : Combating this sort of misapprehen-
sion is, I suppose, the negative part of our job.
Agar : Actually, our approach is positive. For
example, one way to combat the picture of lush,
luxurious America is to broadcast, as the "Voice
of America" has done, dramatizations of such
plays as Our Toion. Another way is to make solid,
factual American books available in our libraries.
Another way is to see to it that our admirable Gov-
ernment documents and reports are easily available
for anybody who wants to buy them — and you'd
be surprised at how many do want to buy them.
Mr. Benton can probably give a fuller picture than
I of the methods that will be used in the Govern-
ment's continuing program.
Benton : A large number of them have been
touched upon tonight. Other phases of our pro-
gram call for international exchange of students,
teachers, scientific specialists, and leaders in liter-
ature and the arts. For the long pull, this is the
most promising activity of all. As the visits of
foreign newspapermen show, there is no substitute
for face-to-face contacts.
The Government will distribute documentary
motion pictures produced by American film com-
panies as a part of this program. Foreign pub-
lications will be supplied by our missions with in-
terpretiva background articles explaining what
makes the United States what it is. Cultural in-
stitutions will be maintained in a few foreign coun-
tries— where people can learn English, attend lec-
tures on America, and meet Americans.
All these pieces together shape the pattern of a
program designed to promote among foreign peo-
ples a better understanding of the life and policies
of the United States as they actually are.
Bloom : It would seem to me that you'll need a
great many people to maintain that program.
Benton : No, Mr. Bloom, our plans are quite
modest, particularly in contrast with the activi-
ties developed by the OWI and OIAA during the
war. For example, we plan on only about 400
people abroad, in our missions, operating our li-
braries, showing our films, arranging for the ex-
change of students and professors.
On many phases of overseas information —
broadcasting, distribution of documents, and so
forth — our proposed plans are less comprehensive
than those of some other nations. We are start-
ing such activities belatedly — long after many
other nations which have had a big head start
on us.
It is not our intention to engage in rivalry in
this field with other nations. But it is very defi-
nitely our intention to make available to the peo-
ples of the world the facts about America which
they are eager to have. To furnish such knowl-
edge seems to me one of the thriftiest, most sensible
investments which the American people can make.
It is an investment designed to yield only one
dividend — that understanding of us which is es-
sential to lasting peace.
Announcer : You have been listening to a spe-
cial presentation on "America — ^As Others See Us"
sponsored by the American Platform Guild.
Heard on this program were Assistant Secretary
of State William Benton, in charge of public af-
faire ; Julius Bloom, vice president of the Ameri-
can Platform Guild and director of the Brooklyn
Institute of Arts and Sciences; and three distin-
guished Americans who have been engaged over- i
seas in the wartime task of international infor- \
mation : C. D. Jackson, director of the interna-
tional relations and staff of Time and Life maga-
zines; Commander Herbert Agar, former editor
of the Louisville Courier- Journal; and Henry
Seidel Canby, an editor of the Saturday Review of
Literature and a judge for the Book-of-the-Month ,
Club. \
JANUARY 6 AND 13, 1946
17
General Assembly of UNO
REPORT FROM LONDON TO THE OFFICE OF PUBLIC AFFAIRS,
DEPARTMENT OF STATE
London, Jan. 11. — The election of Belgian For-
eign Minister Paul-Henri Spaak as President of
the first General Assembly highlighted an impres-
sive and colorful oi^ening session of the United
Nations on Thursday, January 10, in Central Hall,
Westminster.
The newly elected President, aged 46, is a former
newspaper editor. He has been a prominent figure
in the Belgian Government as Deputy Minister of
Transportation, Posts and Telegraphs, Minister of
Foreign Affairs and Premier (1938-39). On the
outbreak of war he became Foreign Minister and
left for Great Britain after- the French armistice
to be Foreign Minister for the Belgian Govern-
ment in London.
When after the liberation M. Spaak returned to
Belgium with the Pierlot government, he retained
his position of Foreign Minister and attended the
San Francisco conference in this capacity. He was
also a representative at the UNRRA conference in
Atlantic City in 1943.
M. Spaak took a prominent part in the Prepara-
tory Commission of the United Nations, of which
he was one of the vice presidents. He is head of
the Belgian Delegation to the General Assembly of
the United Nations.
The British Welcome
British Prime Minister Clement Attlee in wel-
coming the delegates keynoted the meeting with
an address that stressed the "sense of urgency"
that the delegates of 51 United Nations must
maintain in completing their work.
"We realize that as perhaps never before a
choice is offered to mankind", Mr. Attlee said.
"Should there be a third world war the long up-
ward progress towards civilization may be halted
for generations and the work of myriads of men
and women through the centuries be brought to
naught."
Mr. Attlee emphasized the far-reaching im-
679191—46 3
portance of the United Nations. "The United
Nations organization must become the overriding-
factor in foreign policy", he said, and pointed
out that the United Nations Charter "does not deal
only with Government and states but with the
simple elemental needs of human beings whatever
be their race, their color or their creed".
The night before, clelegates to the Assembly
including many of the world's leading statesmen
were guests of King George at a state banquet
in St. James Palace. In a short topical speech the
King set forth the nature of the Assembly's work
and the importance of the issues at stake.
"It is for you to lay the foundations of a new
world where such a conflict as that which lately
brought our world to the verge of annihilation
must never be repeated, where men and women
can find opportunity to realize to the full the good
that lies in each one of them. It is a noble work
and you have in the Charter of the United Na-
tions a noble instrument", the King said.
The London Setting
The restraint and lack of pomp that marked the
King's banquet was matched by the opening ses-
sion at Central Hall. The hall, across the street
from Westminster Abbey and Big Ben and a short
distance from Parliament Square, is an audi-
torium distinctly in line with the traditional Brit-
ish liking for small meeting places. (The House
of Commons accommodates less than its total mem-
bership at one sitting.)
Nevertheless, the warm informal atmosphere
of Central Hall with its well-devised floor plan
for seating the 51 delegations and their technical
advisers has already proved effective for better
understanding politically as well as acoustically.
Delegates address their colleagues not from a high
remote podium but from a slightly elevated plat-
form on th« main floor itself. Committee meet-
ings will be held both in Central Hall and in
18
DEPARTMENT OF STATE BULLETIN
Church House, site of the Preparatory Commis-
sion deliberations, less than a block away.
Despite the proverbial London drizzle, large
crowds Thursday afternoon stood respectfully
around the entrances to Central Hall and ap-
plauded warmly whenever one of the dignitaries
arrived and entered the auditorium under the
flag-decked marquee.
Inside the hall, the solemnity of the occasion
could not dim the brilliance of the gathering.
The floor of the hall was occupied by the dele-
gates, who sat at long tables of English oak. The
Saudi Arabian delegates' flowing robes and head-
dress added a splash of color to the panorama.
Dominating the scene just above the rostrum
hung a huge golden medallion symbolizing the
United Nations. Suspended by long gilt chains,
it stood out sharply against a panel of dark blue.
On the rostrum were only three men : Dr. Eduardo
Zuleta Angel, principal delegate for Colombia,
acting chairman of the Assembly, flanked by Ex-
ecutive Secretary Gladwyn Jebb of Great Britain
and Andrew Cordier of the United States, ad-
viser to the Executive Secretary. Directly in
front of them on the main floor stood the speak-
er's platform from which Mr. Attlee and thet
other delegates spoke, and) to either sidje were
secretaries, stenographers, and translators. On
both sides of the auditorium were small galleries
for visitors, and in the rear was the largest gal-
lery for the press and representatives of private
organizations, completely filled with many stand-
ing,
Spaak's Tribute to Roosevelt
M. Spaak, newly elected President of the
United Nations General Assembly, opened the sec-
ond plenary session Friday morning, January
11, with his speech of acceptance. He paid tribute
to the efforts for peace by the late President Roose-
velt, and, addressing his remarks to Mrs. Roose-
velt, one of the United States Delegation, he said :
"I refer to her who bears the most illustrious
and respected of all names. I do not think it
would be possible to begin at this Assembly with-
out mentioning her and the late President Roose-
velt and expressing our conviction that his dis-
appearance was a great grief to us all and an
irreparable loss."
He urged continuance of the international co-
operation already established. "A great effort is
required from us to sink our preferences and put
aside our antipathies", he said. "We shall none
of us succeed in this unless we can place our coun-
tries' interests in the wider setting of the general
interest of the world and mankind."
Directly after M. Spaak's remarks, the Assembly
rapidly went into operation on the items scheduled.
They authorized the Executive Secretary and his
staff to perform the functions of the Secretary-
General and Secretariat until the appointment of
the Secretary-General and next accepted the re-
port of the Preparatory Commission presented by
Dr. Eduardo Zuleta Angel, who had been chair-
man of that group.
Preparatory Commission and the Assembly
The Charter of the United Nations signed on
June 26, 1945 came into force on October 24, 1945.
The Executive Committee of the Preparatory
Commission consisting of delegates from 14 mem-
ber states of the original Executive Committee of
the San Francisco conference started its work in
London on October 16, 1945. It produced its re-
port to the Preparatory Commission on November
12. The Preparatory Commission was called into
session on November 24 and adjourned on Decem-
ber 24 after it had instructed the Executive Secre-
tary to convene the first part of the first session of
the General Assembly on January 10, 1946. The
Preparatory Commission ceases to exist upon the
election of the Secretary-General of the United
Nations.
Only three times during the course of the morn-
ing did delegates make proposals counter to the
program previously set up. Two occurred on the
question of acceptance of the provisional rules sub-
mitted by the Preparatory Commission report.
The Cuban delegate urged that a 51-man steering
committee be appointed instead of the 14-man body
suggested by the Preparatory Commission. An-
other proposal was that of the Ukrainian delegate,
who urged that nominations be made and discussed
by the Assembly before elections took place by
secret ballots as provided in the recommended
rules of procedure.
The Assembly voted Friday morning to accept
the Preparatory Commission's proposed rules of
procedure as provisional rules until Committee Six
(Legal Committee) acts upon jjroposed changes.
The amendments proposed by Cuba and by the
Ukraine as well as any others that may come up
will be referred to the Legal Committee. The
Cuban delegate moved that such a report should be
JANUARY 6 AND 13. 1946
19
submitted in one week, iind in a roll-call vote on
this time-limit item his motion was carried.
The third change of the morning's schedule
came during the discussion on adoption of the
agenda. A supplementary item, a resolution con-
cerning convocation of an international conference
of the press, was put forward by the Pliilippine
delegate despite the fact that his proposal had
been submitted after the close of the time limit set
by the Preparatory Commission Secretariat.
After a discussion which showed that technical
communication's faults had caused the Philippine
suggestion to be delayed past the time limit, Presi-
dent Spaak said he would accept a motion stating
that the Philippine proposal should be accepted as
part of the agenda. The motion was made and
carried.
Also part of the morning's work was the ap-
pointment of a CredeiTtials Committee by the Pres-
ident. Delegates from Byelorussia, China, France,
Haiti, Paraguay, Philippines, Saudi Arabia,
Turkey, and Denmark were named. Their report
will be considered by the Assembly as soon as it
is presented.
At a late-Friday-afternoon meeting of the As-
sembly, it was voted by acclamation that repre-
sentatives of the following countries be vice presi-
dents of the Assembly: China, France, Union of
Soviet Socialist Republics, United Kingdom,
United States (i.e. the Big Five). South Africa,
and Venezuela.
Primary Purpose — Organization
The primary purpose of the inaugural meeting
of the General Assembly in London is to organize
the United Nations into an efficient working ma-
chine. Later this year at the second half of the
General Assembly, probably in the United States,
substantive matters such as economic and social
trusteeship and security problems will be consid-
ered by the working organization which will be
developed at the present session.
The agenda suggested to the Assembly by the
Preparatory Commission includes 21 items. Some
of the items on which interest centers are :
1. The establishment of committees.
2. Election of the non-permanent members of
the Security Council.
3. Election of members of the Economic and
Social Council.
4. Admission of new members to the United
Nations.
5. Appointment of the Secretary-General (as
soon as the recommendation is received from the
Security Council).
6. Matters of urgent importance including the
problem of refugees.
7. Consideration of the reports of the commit-
tees including the following :
(a) Implementation of the provisions of the
Charter relating to trusteeship.
(b) Possible transfer of certain functions,
activities, and assets of the League of Nations.
(c) Organization of the Secretariat.
(d) Site of the permanent headquarters of
the United Nations.
(e) The relation between the General Assem-
bly and the Economic and Social Council.
(/) The I'elationship between the specialized
agencies and the United Nations.
(g) Financial organization and methods of
assessing and collecting contributions from
members.
8. Elections. Election of members of the Inter-
national Court of Justice.
9. Consideration of the date and place of the
second part of the first session of the General
Assembly.
In addition to the items on the agenda which
were proposed by the Preparatory Commission,
four supplementary items have been proposed by
members.
Atomic Energy Proposal
Sliortly before midnight on January 4, which
was the deadline for submitting additional items,
the British Delegation acting on behalf of the
delegations of the Soviet Union, the United States,
France, China, and Canada presented a resolu-
tion for the establislunent of a commission to deal
with the control of atomic energy based on the
proposals drawn up by the Moscow Conference of
Foreign Ministers. The resolution proposed that
the Atomic Conunission, which consists of one
representative of each of the 11 states represented
on the Security Council and Canada if that state
is not a member of the Security Council, shall
report to and be under the direction of the Se-
curity Council. The terms of reference of the
Commission are that it shall make as soon as
possible specific proposals with regard to —
(a) The exchange of basic scientific informa-
tion between all nations for peaceful ends.
20
DEPARTMENT OF STATE BULLETIN
(b) The control of atomic energy to insure its
use only for peaceful purposes.
(c) The elimination from national armaments
of atomic weapons adaptable to mass destruction.
(d) The establishment of effective safeguards
to protect complying states against violations and
evasions.
Additional UNRRA Funds
The second supplementary agenda item was a
resolution regarding UNRRA submitted by the
British Delegation. This resolution, recalling how
UNRRA was set up to bring relief and help and
rehabilitation and how thousands of people have
been saved from starvation and disease by its 18
months of constructive cooperation, urges :
(a) That UNRRA members should without de-
lay contribute a further 1 percent of their na-
tional income to UNRRA 's funds.
(b) That other peace-loving nations who are
not signatories to the UNRRA agreement should
join the organization.
(c) That the Secretary-General of the United
Nations should make arrangements with the Di-
rector General of UNRRA for the General As-
sembly to be given full periodic reports of progress
toward economic recovery in countries receiving
UNRRA's aid.
The third additional item, submitted bj- the
Cuban Delegation, asks for a declaration of the
international duties and rights of man and of
nations.
In addition a fourth proposal was submitted by
the Philippine Delegation suggesting the convoca-
tion of an international conference of the press.
Although this proposal arrived too late to be in-
cluded in the original supplement to the agenda,
the Assembly voted to have it consideied by the
General Committee for addition to the supple-
mentary list.
The second session of the Assembly on Friday,
January 11, dealt with routine matters such as the
authorization of a temporary secretariat, presen-
tation of the I'eport of tlie Preparatory Commis-
sion, adoption of rules of procedure, appointment
of the Credentials Committee, and the adoption
of the agenda.
Six Main Committees
On Friday also the Assembly created the six
main committees to consider substantive items ap-
pearing regularly on the General Assembly
agenda. Their responsibilities will be determined
by the Assembly following debate on the Prepara-
tory Commission report. All member countries
have the right to be represented on each of the
main conunittees. These committees will have
the dual role of considering items referred to them
by the General Assembly and of preparing draft
recommendations and resolutions for submission
to a plenary meeting.
The six main conunittees are :
1. 7'he Political and Security Committee (in-
cluding the regulation of armaments). This
conunittee is exjjected to consider such matters as
the admission, suspension and expulsion of mem-
bers, political and security matters, the general
principles of cooperation and maintenance of in-
ternationaP peace and security and the principles
covering disarmament and the regulation of arnia-
ments, the promotion of international cooperation
in the political field, and the peaceful adjustment 1
of situations likely to impair the general welfare
and friendly relations among nations. The com-
mittee elected Dr. Dmitro Z. Maiuiilsky of the
Ukrainian Delegation as chairman. The member
of the U. S. Delegation who has been assigned to
this committee is Senator Tom Connally.
2. The Econornic and Financial Convmittee.
This committee will probably deal with the eco-
nomic and financial work of the United Nations.
The promotion of international cooperation in the
economic field including questions of higher stand-
ards of living, full employment, conditions of
economic progress and development, and the equi-
librium and stabilization of prices. The committee
elected Dr. Waclaw Koncerski of Poland as chair-
man. The member of the U.S. Delegation as-
signed to this committee is Representative Sol
Bloom.
?>. The Social, Hv/manitarian and Cultural Com-
mittee.
This committee is expected to consider the As-
sembly aspects of social, humanitarian, cultural
educational, health, and similar work of the Eco-
nomic and Social Council and the specialized agen-
cies. It will also consider assistance in the reali-
zation of human rights and fundamental freedoms
and the conditions of social progress and devel-
opment. The committee elected Mr. Peter Fraser,
Prime Minister of New Zealand, as chainnan. The
JANUARY 6 AND 13, 1946
members of the U.S. Delegation on this committee
are Mrs. Franklin D. Roosevelt and Mr. John G.
Townsend. Jr.
4. The 7'rusfeeshlp Comm-iffee. This committee
will deal with trusteeship arrangements and mat-
ters concerning non-self-governing territories.
Dr. Roberto MacEachen, Uruguayan Ambassador
in London and head of the Uruguayan Delegation,
was elected chairman. The members of the U.S.
Delegation on this committee are Mr. John Foster
Dulles and Representative Sol Bloom.
5. The Administrative and Budgetary Commit-
tee. This committee will consider the organiza-
tions' budget assessments of members and admin-
istrative matters. The committee elected Mr. Faris
al-Kliouri, speaker of the Syrian Parliament and
head of the Syrian Delegation, as chairman. The
U.S. delegate assigned to this committee is Senator
Arthur H. Vandenberg.
6. The Legal Committee. This committee will
undoubtedly consider proposed amendments to the
Charter, requests to the International Court of
Justice for advisor}^ opinions, and problems re-
ferred from other committees. It will also con-
sider the encouragement of the progressive de-
velopment of international law and its codification.
Dr. Roberto Jimenez, former Minister of Foreign
Affairs of Panama and head of the Panamanian
Delegation, was elected chairman. The U.S. mem-
ber of this committee is Mr. Frank Walker.
All of the chairmen of committees were elected
by acclamation. In the selection of these cliair-
men, the principle of equitable geographic distri-
bution was taken into account as well as experience
and personal competence. The vice chairmen and
the rapporteurs of the committees will be elected
at the second meeting of the committees.
While the Security Council and the Economic
and Social Council are holding their preliminary
meetings, the Assembly is expected to debate A'ari-
ous portions of the report of the Preparatory Com-
mission which may take a week or more. Follow-
ing this debate the two councils and the main com-
mittees will get down to business. During the en-
suing period of two or three weeks, the principal
activity of the Assembly will take place in the
meetings of the councils and the committees.
All of the 51 nations that were signatory to the
Charter of the United Nations have deposited their
ratification with tlie Government of the United
States.
21
Social-Service Work
in Latin America
That the Four Freedoms may become realities
in the lives of peoples throughout the world is the
hope motivating the development and administra-
tion of social-service programs in most of the coun-
tries of South and Central America.
This thought was brought out by Mrs. Elisabeth
Shii'ley Enochs, Director, Inter- American Cooper-
ation Unit of the Children's Bureau under the De-
partment of Labor, in a report which she made
to the staff of the Pan American Union on her at-
tendance at the First Pan American Congress of
Social Service held in Santiago, Chile, in Septem-
ber 19-15. Mrs. Enochs was chairman of the Amer-
ican Delegation to this conference.
The Congress not only celebrated the coming of
age of the oldest social-service school in South
America, that of Santiago, but it also demonstrated
the rapid growth of a new profession in the various
American republics and gave proof of professional
solidarity and continental vision among those who
direct welfare programs in these countries.
Revealing the great variety of social problems
of the different nations and the ingenious ways in
which social workers have rallied to solve them,
the experiences and reports given by the delegates
all pointed to a common understanding of the aims
of improved health and living standards for all.
Although the achievements of social-welfare
programs in the American republics during the
past 20 years have been remarkable in their scope,
tlie leaders of these programs are not content to
lest on past glories. Instead, the Congress looked
even beyond this hemisphere and asked "that each
delegation bring to the attention of their country's
representative in the United Nations Organiza-
tion the feeling of the Congress that provision of
an organization for social welfare ... is a
strong necessity".
Brazil is beginning to resume its i^rofitable
banana-export trade with Europe, interrupted by
the war. Twenty-five thousand bunches of ba-
nanas were recently shipped from Sao Paulo to
various European ports.
22
DEPARTMENT OF STATE BULLETIN
Procurement of Foreign Research Materials
By RICHARD A. HUMPHREY '
THE GOVERNMENT of the United States
is a heavy consumer of foreign pub-
lications in all categories. For many
years it has made use of certain tech-
niques in their procurement that are familiar
enough to all institutions whose research depends
in greater or less measure upon such materials. It
has also had at its disposal, however, a unique
avenue to the literature of the world — the Foreign
Service. This avenue has constituted a source of
supply over and above the usual channels of pro-
curement such as the use of commercial dealers and
the processes of exchange.
With the experience of World War II now be-
hind it, this Government has been forced to the
conclusion that its former procurement methods
were inadequate. At the onset of hostilities, the
dearth of vital foreign research materials at Wash-
ington's disposal amply demonstrated this in-
adequacy. Moreover, during the war not only the
normal commercial channels but also the exchanges
were in a chaotic state. As a consequence, the
Federal procurement burden was perforce shifted
throughout the war to two principal sources of
supply — the Foreign Service and an interdepart-
mental committee created for the express purpose
of acquiring foreign publications. Between them,
these sources secured thousands of foreign titles
ranging from the daily press and vital periodical
literature to maps, charts, statistical yearbooks,
and other materials necessary to the conduct of the
public business in wartime. Indeed, a significant-
enough job was done through these media to con-
vince the Government as a whole that permanent
means must be evolved to assux'e an uninterrupted
and ample flow of research materials of foreign
origin to the Federal policy officers in all depart-
ments and agencies.
' Mr. Humphrey is Special Assistant to the Chief, Divi-
sion of Research and Publication, OflSce of Public Affairs,
Department of State.
•Treaty Series 381 and 382; 25 Stat. 1465 and 1469.
The problem, now that hostilities have termi-
nated, has become that of assessing former meth-
ods, analyzing future demands, and attemptmg
to relate the two with a view to making such
changes, additions, or other alterations in pro-
curement methods as will satisfy the greatly ex-
panded official demand.
A brief review of pre-war procurement methods
will disclose certain factors which have been im-
portant in planning future operations. By far
the greatest proportion of foreign material pro-
cured for this Government prior to the war was
secured through one or the combination of two
channels: (1) private commercial, as supple-
mented by traveling agents of the individual
departments and agencies, and (2) exchanges.
Pragmatically judged, these sources supplied con-
siderably less than the desired quantity of publi-
cations. The methods as methods, moreover, ex-
hibited internal weaknesses which accounted, in
large measure, for their inadequacy.
The excliange system, as between government
and government, stems from the Brussels conven-
tions of 1886.^ A statement of its defects will also
reveal its principal provisions and suffice for pur-
poses of illustration. In terms of the needs of this
Govenm[ient the outstanding defects of the inter-
national exchanges have been (1) that they pro-
vided for the exchange of single copies only of the
si^ecified classes of official publications, an ob-
viously inadequate coverage when total Federal
needs are considered; (2) that they did not cover
at all provincial, municipal, professional, and
other important private publications; (3) that
they specifically did not provide for the initiation
of new exchanges, nor for fluid adjustment to
changes in departments and ministries; and (4)
that they did not constitute suitable sources of
bibliographical information even for tlie classes of
official publications covered. As a result the vari-
ous departments and agencies of this Government
were forced to develop direct, bilateral exchange
JANUARY 6 AND 13, 1946
23
relations with their counterpart or near-counter-
part agencies in s^jecific foreigii countries. In
many respects this method eilected the necessary
relations, but the technique remained essentially
outside of the formal government-to-government
pattern. Needless to say, it gave rise to numerous
additional administrative problems of integration
as well as to an enormous amount of extra labor
on the part of the separate agencies.
Direct purchase of material through normal
commercial channels, on the other hand, also failed
to provide the agencies with either the quantity
or the kind of publications whicli they needed.
The reasons for this failure were chiefly two : ( 1 )
commercial channels did not yield adequate biblio-
graphical information upon which sound purchase
procedures could be based; and (2) an inevitable
time-lag existed — usually extending over a period
of months — before information concerning pub-
lications and markets was actually received in
Washington and orders were processed by the
agencies and were actually placed with foreign
dealers. In order to circumvent these difKculties
two methods of purchase in particular were tra-
ditionally relied upon — the use of direct repre-
sentatives of the several agencies traveling abroad,
usually on temporary missions, and the placing of
so-called "blanket" orders with commercial dealers.
The traveling representatives more often than not
were concerned with assessing markets and at-
tempting to infuse efficiency (from the agencies'
point of view) into existing commercial channels.
The "blanket" ordere were placed with individual
dealers in terms of inclusive buying, i.e. agencies
would request dealers to purchase all materials in
specified fields of knowledge most needed by them.
Neither of these methods proved satisfactory.
No single Government agency having large-scale
needs for foreign printed materials could afford
enough traveling representatives to attain really
world-wide coverage. The Library of Congress,
for example, one of the largest single consumers
of sucli materials in the Government, maintained
only a few people at a time on collecting missions
abroad and never obtained by this means the full
range of publications desired. Other agencies
could sei"vice themselves in this respect even less
adequately.
Moreover, the fact that traveling representatives
as officials of this Government functioned in an
inevitably official relation ms-a-vis other govern-
ments rendered especially serious duplications of
effort occurring from time to time in certain coun-
tries. Consequently, the Department of State
came more and more to the view that the job to
be done was essentially a foreign-office function
and, as such, could neither efficiently nor appro-
priately be accomplished by agencies other than the
Department itself. The device of traveling agents,
it is safe to say, did not attain the results desired
by the several agencies — full coverage, extensive
bibliographical information, and efficient and
speedy placement of orders.
The other principal purchase method employed
by the agencies — the "blanket" order — served their
needs no better. Basically, this technique placed
responsibility for coverage and selection within the
fields of interest to the agencies in the hands of
commercial dealers. The dealers tended, natu-
rally enough, to select and forward primarily those
items in a given field of knowledge on which they
could make a substantial profit. Since reliance
was obviously placed upon the dealer with regard
to what was available, this system was clearly more
beneficial to the dealer than to the ordering agency.
The point need hardly be labored that the margin
of profit on a given book is no certain guaranty
of its usefulness in government research. Conse-
quently, a great deal of private printing of im-
portance to this Government never emerged from
the dealer's channels at all.
Finally, since the ordinary commercial biblio-
graphical aids in a given foreign country normally
reflect only the product of the capital city or of the
chief publishing area and since they seldom re-
flect such important private printing as indus-
trial journals and the periodicals of learned and
scientific societies, the sources of information as
to available publication were seriously deficient.
Yet, even with such information at hand as it could
glean from the sources mentioned, the average
agency lost a substantial amount of current out-
put as a consequence of the lapse of time between
receipt of information and the preparation and
placing of orders abroad. Editions which sold out
in days or even weeks in London or New Delhi
could not be purchased through orders placed from
Washington months after their initial appearance.
The foregoing considerations should show that
of the principal methods of procurement of foreign
24
DEPARTMENT OF STATE BULLETIN
publications normally oj^en to this Government —
purchase and exchange — neither has proved satis-
factory judged even by pre-war standards. The
alternatives for future procedure appeared, upon
consideration, to be the following: (1) the provi-
sion of such additional channels as might be de-
vised, to be superimposed upon accepted channels ;
or (2) tlie modification or clarification of processes
within old chainiels. Chief reliance has been
placed upon the latter in the current planning for
future operations.
The Foreign Service of the United States has
assisted the agencies of this Government for many
years in procuring foreign jirinted materials. One
factor must be emphasized in this regard which
is common to the pattern of the past and the pro-
gram for the future: Foreign Service assistance is
supplementary to conunercial and other sources of
supi^ly; it cannot hope to supplant them. As pre-
viously established, however, standing instructions
were issued by the DeiJartment to each foreign post
requiring the assignment to a specific officer of the
responsibility of complying with requisitions from
Washington.
The weaknesses of this system were inherent in
it and were not the result of lack of diligence on
the part of the Foreign Sei'vice. For example, in
practically no case, even in such important pub-
lishing centers as London, Paris, or Buenos Aires,
could the full time of even one officer be afforded
for this task. Moreover, few if any of the officers
to whom the responsibility was delegated had
training in the collection or even assessing of li-
brary materials. The Foreign Service did a sig-
nificant enough job over a period of years, how-
ever, to make obvious one solution to the permanent
problem — the strengthening of the technique the
potential of which had been clearly demonstrated.
The Division of Research and Publication of
the Department of State, after a thorough can-
vass of the problem, recommended that the De-
partment hencefoi'th accept a larger responsibil-
ity to the other agencies in the matter of procure-
ment from abroad. Upon acceptance of that rec-
ommendation by the chief policy officers and the
Office of the Foreign Service, the Division of Re-
search and Publication worked out with the lat-
ter office a broad plan of future operations. That
plan calls for the assignment to the Foreign Serv-
ice (at first through the medium of the Foreign
Service Auxiliarj') of a certain number of full-
time, technically trained officers to coordinate the
Department's procurement facilities in the princi-
pal publishing centers of the world or in those
areas from which foreign publications are most
sorely needed. Among the posts to which officers
have already been, or will be, assigned are Lon-
don, Paris, Berlin, Rome, Cairo, New Delhi,
Tokyo, Rio de Janeiro, and Buenos Aires. It is
hoped that these technical officers can ultimately
fill 25 or 30 such posts.
The activities of the Department's Publications
Procurement Officers fall chiefly into two cate-
gories : the development and maintenance of com-
prehensive bibliographical information .services in
the field and the procurement of foreign publica-
tions and other library materials by exchange, pur-
chase, and gift. The needs of the Federal Gov-
ernment require that the materials with which the
Publications Procurement Officers will be con-
cerned will be varied. They will include books,
pamphlets, periodicals and newspapers, federal,
provincial, and nuinicipal publications, maps, city
plans, and even ephemera such as posters. Their
bibliographical i-eporting is expected to provide
current information on basic reference books and
treatises, including directories, economic and com-
mercial guides, statistical works, and private peri-
odical and other literature published by industi'ial
concerns and scientific societies, as well as infor-
mation on the status of commercial publication
outlets.
It is clearly understood that the job to be done
will display very different characteristics in dif-
ferent parts of the world. Emphasis cannot be
placed too strongly upon the fact that, in all cases,
the Department's efforts are intended to supple-
ment, not to supplant, the normal commercial
channels long employed by Federal agencies.
Wliereas, specifically, in one location the principal
task may be the establishing or rejuvenating of an
integrated exchange system, in another the need
may be for coordinating sources of market infor-
mation and in still another much attention will
have to be given to "following through" already
initiated exchange and purchase patterns. Cer-
tainly for a long time to come, however, the De-
partment will be able to afford all too few full-
time officers for what is essentially a gigantic task.
Some of the Publications Procurement Officers
to serve under this program are now in the field,
the first having been sent out in the spring of 1945.
JANUARY 6 AND 13, 1946
Their reports on currently available publications
which are circulated by the Department have al-
ready proved of great benefit to the Federal agen-
cies, in view of the fact that the aftermath of the
war with its disrupted markets, limited editions,
and almost complete lack of adequate information
on materials has made efficient ordering extremely
difiicult.
The Department has itself learned a great deal
about the scope of the over-all problem from the
course of orientation it has established for these
officers prior to their departure from Washington.
In addition to having been familiarized with the
Department's concept of the program, with its di-
rectives and procedures, the officers have been sent
to each of the other departments and agencies
having acquisitions interests in the countries to
which their assigiiment was being made. Al-
though time-consuming, this procedure has made
it possible for each officer to leave for his post with
a reasonably exact conception of the needs of spe-
cific agencies, with a fair comprehension of their
procurement problems, and with a knowledge of
the exact sums of money available to him. With-
out this background, sound reporting and servic-
ing from the field would be a virtual impossibility.
It has become increasingly evident that an
integrated procurement policy for the Washing-
ton agencies is a prime essential for effective
operations. No one would question the difficulty
of the Department's position, for example, if it
were called upon to decide between the some-
times conflicting needs of agencies. Neither can
it be seriously questioned that, since the labors of
these officers ai"e in behalf of the Government as a
whole, they deserve to have behind them a clearly
stated policy regarding the Government-wide
program.
The outlines of such a coordinated pattern of
Federal procurement of foreign printed materials
are now emerging. This progi'am is a direct re-
sult of the recognition by the several departments
and agencies that unrelated and even competitive
procurement has not in the past produced, and
cannot in the future attain, the best results either
for the agencies as individual consumers or for
the Government as a whole.
The Department of State recently requested the
Librarian of Congi'ess to explore, with the other
departments and agencies, a means of providing a
continuity of acquisitions policy which could guide
it in its procurement activities. In response to
25
this request, the Librarian held a series of informal
meetings with a group of officials from those agen-
cies most interested in acquiring foreign publica-
tions. After they had reached general agreement
that coordination and integration of the Govern-
ment's needs were essential, the Librarian was re-
quested to make certain representations to the
Secretary of State on behalf of the informal group
considering the problem.
These representations took the form of a re-
quest that the Secretary consider establishing a
permanent Interdepartmental Committee on the
Acquisition of Library Materials within the
framework of the interagency intelligence group
which the President had requested him to form.
The duties and responsibilities of the Committee,
as proposed, are as follows :
1. To plan a comprehensive program of coop-
erative acquisition as between and among the sev-
eral departments and agencies. The scope of this
planning shall include the maintenance of com-
prehensive research collections of library mate-
rials, the rapid interchange and loan of materials,
and the distribution of bibliographical infor-
mation.
2. To originate recommendations to the several
departments and agencies concerning the develop-
ment of their libraries within the framework of
over-all Federal acquisitions, these recommenda-
tions being designed to make available to this Gov-
ernment all foreign library materials necessary
to the conduct of the public business.
3. To originate recommendations to the Depart-
ment of State on matters of broad policy con-
nected with the procurement of foreign materials
through the Foreign Service.
4. To review requisitions on the State Depart-
ment procurement facilities whenever it becomes
necessary to determine wliether said requisitions
are consistent with the Committee's comprehen-
sive acquisitions program.
It will not escape notice that the basic philos-
ophy of the Committee negates the principle of
agency representation. For members of the Com-
mittee to conceive of themselves, or for their agen-
cies to conceive of them, solely as representatives
of the interests of the governmental bodies to
which they are attached would render most diffi-
cult the primary task of attaining broad consider-
ation of Federal procurement policy. The situa-
( Continued on page 34 )
26
DEPARTMENT OF STATE BULLETIN
What Is Our Inter -American Policy?
RADIO BROADCAST
Participants
Spruille Braden
Assistant Secretary of State for American
Republic Affairs
Ellis O. Briggs
Director, Office of American Republic Affairs,
Department of State
Sterling Fisher
Director, NBC University of the Air
Announcer: Here are Headlines From Wash-
ington:
Assistant Secretary of State Braden Says Axis
Forces in Argentina Still Constitute a Danger
to the Ajnericas ; Reaffirms United States Sup-
jDort of Uruguayan Proposal for Collective
Security in Western Hemisphere.
Flllis Briggs of State Department Says United
States Policy Is To Avoid Unilateral Action,
but That We Reserve the Right To Speak Out
and Work for Collective Action for Peace in
the Americas.
This is the fourth in a group of State Depart-
ment programs broadcast by the NBC University
of the Air as part of a larger series entitled "Our
Foreign Policy". This time the question "What
is Our Inter- American Policy?" will be discussed
by Mr. Spruille Braden, Assistant Secretary of
State for American republic affairs, and Mr. Ellis
O. Briggs, Director of the Office of American Re-
public Affairs. Sterling Fisher, Director of the
NBC University of the Air, will serve as chair-
man of the discussion. Mr. Fisher —
Fisher : Mr. Braden, I'd like to say right here
that a good many of us have followed your forth-
right career, as Ambassador to Argentina and as
Assistant Secretary of State, with interest and
more than a little admiration. Because we ad-
mired your actions down in Buenos Aires, we're
especially delighted to have you as our guest on
this program.
Braden: Thanks, Mr. Fisher. But you must
realize that I acted in Buenos Aires as the official
representative of my Government.
Fisher : Granted. But I still think you inter-
preted United States policy with a unique vigor.
Mr. Briggs, you've worked with Mr. Braden a
good deal — don't you agree?
Briggs: Yes, I think he added his own touch.
Fisher : Now, if you don't object, Mr. Braden,
I'd like to ask you a personal question.
Braden : Go right ahead.
Fisher: Many of us would be interested in
knowing how a former mining engineer like your-
self became a diplomat. Wlien did you first start
working with the State Department ?
Braden : Well, in 1933 — 12 years ago — the Pres-
ident appointed me as a delegate to the Seventh
International Conference of American States at
Montevideo. A little over a j'ear later I was
named a delegate to the Pan American Commer-
cial Conference. But for years before that I had
been in business in various parts of the hemisphere.
Briggs: You also had a lengthy assignment as
our representative at the Chaco Peace Conference
in the thirties.
Braden: Yes, that kept me down there from
1935 until the end of 1938. In the early part of
that period it looked as if the negotiations between
Bolivia and Paraguay might break down. If they
had, the whole peace structure in the Americas
might have gone down too.
Fisher: And after that was settled you went
to the Republic of Colombia.
Braden : That's right. That was a very inter-
esting period. I was Ambassador to Colombia
when the Axis airlines down there were closed out
in 1940.
Fisher : And in 1942 you went to Cuba as our
Ambassador. That assignment lasted until early
in 1945, didn't it?
Braden: Yes, until last April, when I was
transferred to Argentina. Mr. Briggs here was
with me in Habana for over two years, as Coun-
' Released to the press Jan. 5.
JANUARY 6 AND 13, 1946
27
selor of Embassy. He put in a total of eight years
in Cuba, at different times. And he has served in
Peru, Chile, and as Ambassador to the Dominican
Republic — and for three years as Assistant Chief
of the Office of American Republic Affairs.
Fisher: That's quite a background for your
present work, Mr. Briggs. I understand that you
were one of the youngest ambassadors in our his-
tory when you were accredited to the Dominican
Republic.
Briggs: I may have been, Mr. Fisher.
Fisher : Now, to get down to the main business
at hand — Mr. Braden, as you know, there has been
a good deal of discussion of our inter- American
policy. Before you became Assistant Secretary
for American republic affairs, it was sometimes
charged that we were appeasing the Argentine
dictatorship. Since you came to Washington that
sort of criticism has stopped, but some commen-
tators have claimed that we were intervening too
actively in our dealings with the other American
republics. Wliat about that, Mr. Secretary?
Braden : Our policy of non-intervention in the
affairs of the other American nations is funda-
mental and will continue. We have no intention
of taking that kind of unilateral action. Neither
do we intend to stand idly by while the Nazi-
Fascist ideology against which we fought a war
endeavors to entrench itself in this hemisphere.
But our policy is one of joint action with the
other republics — group action for our mutual se-
curity.
Fisher : If we can be more specific, Mr. Braden —
what is the situation with regard to Argentina
today ?
Braden: There is one basic fact about Argen-
tina, Mr. Fisher. The majority of the Argentine
people have always been pro-democratic and op-
posed to totalitarian dictatorship. That's truer
today than ever.
Fisher : I should think that would be difficult to
prove.
Braden: A good example of the opposition to
the Fascist regime was the magnificent "March
of the Constitution and of Freedom" last Septem-
ber. An estimated half-million Argentines pa-
raded through the streets of Buenos Aires that
day. Society women and men in overalls marched
side by side. It was an impressive demonstration
for democracy, carried out despite every possible
obstacle put in its path. Over 500,000 people, and
they were not divided up in groups of business-
men, labor-union members, or students — they all
marched together. They alternated in singing
their own national anthem and "God Bless Amer-
ica". You can't say that people like that are not
our friends.
Briggs: Shortly after that the Government
clamped down a "state of siege" again.
Fisher: Just what is a "state of siege", Mr.
Briggs ?
Briggs: Well, it means the establishment of
martial law. Here it would involve the setting
aside of the Bill of Rights.
Braden : It means that hoodlums with brass
knuckles can strike girls in the face for shouting,
"Long live democracy." It means that the saber-
wielding mounted police can ride down men,
women, and children and beat, slug, or arrest any-
one at will, without fear of reprisal.
Fisher : I understand that Dictator Juan Peron
got his training in the Fascist School in Milan,
Italy.
Braden : I'm not concerned as much with per-
sonalities, Mr. Fisher, as I am with ideologies.
All through the war, the Axis forces in this hemi-
sphere used Argentina as a base of operations.
These Axis forces still constitute a danger to the
Americas.
Fisher : You mean that Axis business firms in
Argentina are still untouched, despite all the
promises that were made?
Braden : No, I wouldn't say that. I tooidd say
that nothing has been done against the most pow-
erful and therefore most dangerous Axis elements.
Fisher : How does the present Argentine regime
manage to keep enough popular support to stay
in power, Mr. Briggs ?
Briggs : They have the police, an important seg-
ment of the Army, armed "action groups", and a
typically National Socialist program, not exclud-
ing the old formula of bread and circuses for the
millions. Following recognized Nazi tactics, they
secured control of certain strategic labor unions.
If you take over the transport, utilities, and a few
other important unions, with the help of the police,
you can control a nation.
Braden : It follows the German pattern of 1933
to 1938. The object is to convert a military revo-
lution into a National Socialist revolution.
Fisher: The question is, what can be done to
stop this sort of thing before it spreads to other
28
DEPARTMENT OF STATE BULLETIN
countries? The New York Herald Ttihune
pointed ont the other day that here you liave the
same dilemma that faced the democracies in 1939
and before. To intervene would be to violate the
principles of international law ; and "not to inter-
vene"— to quote the Herald Tribune — ^"is to see
Fascism . . . take hold and fester in Latin
America, until it ultimately threatens to wreck
the continent if not the larger world". Mr.
Braden, how can you escape from that dilemma?
Braden : You are perfectly right, Mr. Fisher.
We are pledged not to intervene in the internal
affairs of any American republic by taking uni-
lateral action, and we shall not do so. On the
contrary we intend to consult with other counti'ies
in this hemisphere and to follow this by such joint
action as may be agreed upon.
Fisher : Which brings up a second major ques-
tion in our Latin American relations — what about
the Uruguayan proposal? But first, Mr. Briggs,
you might tell us just what it is.
Briggs: What the Uruguayan Foreign Minis-
ter proposed was that the notorious and repeated
violation of human rights by any counti"y endan-
gers the peace and is a matter of concern to other
countries. The Foreign Minister pointed out the
close connection between democracy and peace, and
also visualized the necessity of harmonizing the
doctrine of no unilateral intervention with the
need for action to be taken with respect to a regime
violating human rights.
Fisher : But what is new about the Uruguayan
plan?
Briggs : First, it clearly recognizes that democ-
racy and peace are parallel, and that the close
connection between them constitutes a legitimate
basis for inter- American action. Second, Uruguay
stressed that "non-intervention" should not be a
shield behind which crimes may be committed.
Axis forces sheltered, and obligations disregarded.
Dr. Rodriguez Larreta put forward this proposal
and suggested that it be the subject of consultation
looking toward its adoption.
Braden : When Seci-etary Byrnes gave the mes-
sage of the Uruguayan Foreign Minister his
whole-hearted approval, he put the issue very
clearly: "Violation of the elementary rights of
man by a government of force and the non-fulfill-
ment of obligations by such a government is a
matter of common concern to all the republics. As
such," said Mr. Byrnes, "it justifies collective
nmltilateral action after full consultation anions
the republics in accordance with established pro-
cedures."
Fisher: And Secretary Byrnes' endorsement
still stands?
Braden : It does. We are convinced that the
Uruguayan proposal is sound and moreover fully
in accordance M'ith the development of the inter-
American system. We believe that it merits fidl
public examination and discussion. Furthermore,
the 4-eplies sent to the Uruguayan Minister which
have thus far come to our attention show a broad
area of agreement with respect to the principle in-
volved.
FiSHEi! : I remember Sumner Welles said that
our endorsement of the I^rugnayan proposal made
it look as though the proposal announced in
Montevideo had in reality been made through
prior agreement in Washington. Would you care
to conunent on that, Mr. Braden ?
Braden : The proposal was entirely the idea of
the Foreign Minister of Uruguay. It was drafted
by him and was submitted simultaneously to this
Government and to the others. We were prompt
to approve the general principles involved, be-
cause they are consistent with our whole inter-
American policy. The proposal recognizes that
the American republics have the same right of
discussion and consultation which they themselves
have already granted to the United Nations Organ-
ization, in empowering the Assembly to discuss
any matter affecting the peace. Furthermore, the
United Nations Organization will have the power
to take collective action to meet threats to the
peace. That's what Uruguay proposes for this
hemisphere. It may of course take time to imple-
ment the proposal. That can only be done if after
thorough consultation the other American repub-
lics of their own volition are convinced of its wis-
dom. That's the inter-American way.
Fisher: There have been some charges, Mr.
Braden, that this plan would mean the scrapping
of the doctrine of non-intervention in the internal
affairs of other countries, on which the good-
neighbor policy is based.
Braden : There's no basis for such charges.
When we take a stand for democracy in the Bal-
kans, no one cries "intervention". That's a com-
plaint that seems to be reserved for the Americas.
Our approval of the LTruguayan proposal doesn't
mean that we're going to attempt to impose our
will or send the Marines anywhere. What we
need first of all is frank and friendly discussion
JANUARY 6 AND 13, 1946
29
of our problems, in the same sort of town-meeting
atmosphere as in the United Nations Assembly.
The spotlight of jiublic opinion can do a lot.
Fisher: What would you add to that, Mr.
Briggs?
Briggs : Just this : We don't intend to intervene
to impose democracy on anyone. We do feel most
friendly toward those governments that rest on
the freely and periodically expressed approval of
those who are governed. We are just as friendly
to the people living under regimes where they must
struggle for such expression.
Fisher : Then, Mr. Briggs, the Uruguayan pro-
posal doesn't mean intervention — certainly not
unilateral intervention. But doesn't it imply that
something less than unanimity should be required
for action, in case fundamental human rights are
threatened in any country?
Briggs : It definitely implies that, Mr. Fisher,
though certainly no steps would be undertaken by
this nation or the others unless there was general
agreement. The idea that we must have unanim-
ity before we can act together, however, is not
in accord with practical reality. If we want to
implement our international ideals, we'll have to
be content with the reasonable and attainable ob-
jective of a substantial majority of nations, while
seeing to it that the rights of the minority are
fully protected. But these are all questions that
remain to be worked out with our sister republics.
Braden : I'd like to add, Mr. Fisher, that a na-
tion as powerful as ours must be particularly
scrupulous in any matter involving collective ac-
tion. No one fears the intervention of small coun-
tries, but the possession of great military and eco-
nomic power is bound to arouse suspicion unless
we are extremely careful in the use of that power.
But we also have to recognize this fact: Noi
to use our power in the interests of peace and
freedom may be ?«isusing that power just as much
as if we brought our influence to bear on the wrong
side of an issue. We must lean over backwards
to avoid intervention by action or inaction alike.
Fisher : That's a little complicated, I'm afraid,
Mr. Braden; perhaps you'd better explain what
you mean by "mtervention by inaction".
Braden : Well, let me put it this way : Suppose
a totalitarian regime comes to power in some coun-
try. If we withhold recognition, that regime may
claim we're intervening. If we recognize it, then
its opponents may claim that we are intervening on
its behalf.
Fisher: In other words, you're damned if you
do and damned if you don't.
Braden: Sometimes that's the way it seems.
But the only course we can follow is to consider
all the possibilities and then throw our weight
on the side of the principles of justice and free-
dom— the principles for which this country was
born and for which we have just fought a tragi-
cally costly war. In that war alone we sustained
a million casualties and increased our national debt
by 300 billion dollars, in defending these prin-
ciples. We shall continue to defend them. In
so doing we shall act in concert with the great
majority of other American nations.
Briggs: AVliat we're really trying to say is that
the doctrine of non-intervention means no inter-
vention by any 07ie nation. It's my own belief that
the necessity for intervention by the use of force
would rarely occur. You wouldn't have to go this
far in a majority of cases. The airing of the facts
should in itself do much to correct the condition.
Braden : I'd like to quote something at this i^oint
from one of the greatest legal figures this hemi-
sphere has produced— the Brazilian jurist, Ruy
Barbosa.
Fisher: Go right ahead, Mr. Secretary.
Braden: Ruy Barbosa said, on July 14, 1916:
"When violence arrogantly tramples the written
law underfoot, to cross one's arms is to serve
it. . . . In the face of armed insurrection
against established law, neutrality cannot take the
form of abstention, it cannot take the form of
indifference, it cannot take the form of silence."
Fisher: That's an eloquent statement — don't
you think. Mi'. Briggs?
Briggs: Yes; and that reference to silence is
particularly appropriate. Any nation certainly
has a right to speak its mind on issues it considers
important. We endorse the right to sjjeak freely,
to offer sympathy to oppressed peoples, and to
try to persuade other nations to join us in gi'oup
action, where action is required.
Braden : Any other interpretation of non-inter-
vention is grotesque. People who argue that any
action or any statement on our part constitutes
intervention are really asking us to go isolationist ;
they are asking us to see no evil and hear no evil,
even if evil is there under our very noses.
30
DEPARTMENT OF STATE BULLETIN
Briggs: No international association could
prosper if its member nations were denied tlie
right to express their opinions, or to seek agree-
ment among themselves on necessary action to be
taken. And I'd like to emphasize again that such
action need not be vnanimons. The fact is, very
few treaties and conventions are unanimously
ratified.
Fisher: Haven't a good many pan-American
treaties been adopted unanimously, Mr. Briggs?
Briggs: On the contrary; out of a hundred or
more treaties and conventions signed in this
hemisphere since 1890, only one of any impor-
tance— the Pan American Sanitary Convention —
was ratified by all 21 American republics. You
can't expect to get unanimity on all major issues.
If you stick for unanimity, what you'll often get
is the lowest common denominator — something
watered down and tasteless rather than useful and
inspiring.
Fisher : I am sorry if I keep returning to this
question of intervention, or rather unilateral ac-
tion, Mr. Briggs, but I seem to remember that the
same charges were made when the conference
scheduled for Rio de Janeiro was postponed late
last year. What was behind that ?
Briggs: Well, Mr. Fisher, the Rio conference
was called for just one purpose: to write the Act
of Chapultepec into the form of a permanent
treaty, whereby the countries of this hemisphere
would come to the aid of any American republic
whose security might be threatened. But Argen-
tine developments were such that we felt it woidd
be meaningless to conclude such a treaty with the
present Argentine Government as a cosignatory.
So we suggested to Brazil, the host country, that
the conference be postponed.
Fisher : There was some talk at the time to the
effect that we didn't consult the other countries
before taking that step.
Briggs: That talk was totally unfounded. We
proceeded in a perfectly proper way. We took
the matter up with the host government first, and
then discussed it informally with the other gov-
ernments. That discussion was carried on through
two channels — we talked with their ambassadors
in Washington, and our ambassadors abroad con-
sulted with their Ministers of Foreign Affairs.
Finally, at the October meeting of the Pan Amer-
ican Union's Governing Board, the representa-
tives of the other republics indicated that post-
ponement was satisfactory to them.
Braden : As a matter of fact, some of the gov-
ernments indicated thtey had desired postpone-
ment for weeks prior to our taking initiative, and
for the same reason.
Fisher: Then, Mr. Braden, the reports of uni-
lateral action were completely false?
Braden: Yes, the otJier American republics
were all consulted prior to the meeting of the Pan
American Union where the decision was made.
Fisher : And where does the matter stand now ?
When will the conference be held ?
Braden : It is scheduled for some time between
March 15 and April 15 of this year. Our own
suggestions have been drafted with the collabora-
tion of members of the Congress and of the War
and Navy Departments. Other nations have been
invited to send in their suggestions to the host gov-
ernment. The treaty, when it is drawn up, will be
in full harmony with tlie United Nations
Organization.
Fisher : Now, what about our economic policy
for the Americas, Mr. Briggs? The end of the
war must have brought some severe problems
south of the border.
Briggs : Yes, that's true. The war put a severe "
strain on the economy of many of the American
republics, at the same time that their various in- I
dustries were greatly expanded. Just as we are
now going through a process of reconversion, the
other American republics are in process of chang-
ing many lines of trade from wartime to peace-
time demands. Fortunately most of our neigh-
bors have substantial dollar balances because of 1
our purchases of strategic war goods, and the pos-
session of these balances will help them in making
the transition.
Fisher: Isn't the problem of maintaining em-
ployment highly important to them?
Briggs : It is indeed. At the Mexico City con-
ference early last year this problem was recognized
by all of us, and our Government agreed to a policy
of easing the transition as much as we could by
tapering off our purchases of strategic materials
and giving them as much notice as possible before
curtailing or terminating our purchases.
Fisher : And have we kept our word ?
Briggs: Yes. Of course "tapering off" is sub-
ject to various interpretations. We are still buy-
ing some strategic materials. How long we can
JANUARY 6 AND 13, 1946
31
continue that, even for stockpiling purposes, is a
question.
Fisher : Mr. Braden, what about our long-range
economic policy in the Americas ?
Braden : We believe first of all, Mr. Fisher, that
we should do everything in our power to help our
American neighbors to increase industrialization
along sound lines and to achieve higher standards
of living.
Fisher: I've heard the argument that that
policy will operate to reduce the market for Amer-
ican goods.
Braden : Tliat argument was exploded by Adam
Smith 200 years ago, but it dies hard. When our
industrial revolution got under way, there were
some Englishmen who said that, if English capital
were sent over here, in time we would stop buying
English goods. Wliat happened? Within two
generations we were buying six times as much
English goods as before. No. If you want to
sell goods, you have to find people with money
or goods to trade for them.
Fisher: And what about the political results
of industrialization, Mr. Braden? Do you feel
that democracy goes with higher living standards,
almost automatically ?
Braden : Rising standards of living help to make
free institutions possible. But higher living
standards don't necessarily produce democracy.
The Germans had higher living standards — and
for that matter, a higher rate of literacy — than
most of their neighbors, but they weren't demo-
cratic. Nor were they peaceful. And we should
keep this in mind in encouraging industrialization
in the Americas. I should be guilty of a lack of
candor if I failed to point this out: We have no
interest in promoting increased industry and pro-
ductivity in nations which intend to build self-
contained, nationalistic economies and aggressive
military machines. That would be against our
own interests and against the mterests of the
inter- American society of nations.
Fisher : You are thinking in terms of an inter-
American economic system, then?
Braden : Quite the contraiy, Mr. Fisher ! We
want to see this hemisphere an integral part of a
freely trading world. The best way we know to
protect this hemisphere — and ourselves — is to help
to promote prosperity and stability and mutual
trust not only throughout the Americas but
throughout the world.
Briggs: And that means the lowering of com-
mercial barriers, here as in the rest of the world.
Braden : Yes. I hope that every American re-
public will be represented at the United Nations
Trade and Employment Conference this year.
Tliat conference can and should do a lot to break
tlie shackles limiting world trade.
Fisher : And what about cultural cooperation,
Mr. Briggs ?
Briggs: That's highly important also, Mr.
Fisher, in the long run. We need to build up more
and more travel, more exchanges of teachers and
students, within this hemisphere. Too many
North Americans are ignorant of South America,
and too many of our southern friends are ignorant
of the United States. It's just as important for
them to understand us as it is for us to understand
them.
Braden : Yes, our history books are notoriously
shy on facts about Latin American history and
culture. Every schoolboy in the United States
should learn that Bolivar and San Martin, as
well as George Washington, were fathers of Amer-
ican freedom. And as they go on in school they
should learn about the contributions of the other
republics to our literature, art, music, law, and
government. If this were done — if we learned
more about our neighbors and they learned more
about us — we would gradually come to think of
ourselves not only as citizens of a single country
but as citizens of the inter- American system as
well, and of the world.
Briggs: That would also help undermine the
exaggerated nationalism from which nearly every
country is suffering. Perhaps we all do too much
thinking about our own country's sovereignty and
not enough about the responsibility that goes with
sovereignty — the responsibility of each individual
nation to the community of nations.
Fisher: Now, gentlemen, we've dealt with po-
litical, economic, and cultural questions. In the
time that's left, I'd like to ask Mr. Braden to sum-
marize our over-all policy for the Americas.
Braden: In the first place, Mr. Fisher, it's no
different from our foreign policy generally. It
springs from the same basic principles. We have a
special interest in the security of the Western
Hemisphere, it's true, because we live in this
hemisphere. But we know that we can only have
regional security in a secure and peaceful world.
Further, we recognize that international peace and
32
DEPARTMENT OF STATE BULLETIN
individual freedom are intertwined, so it is to our
interest to encourage representative government
and oppose irresponsible tyranny.
Briggs : It's a matter of bringing political de-
velopment up to date with modern science and
technologj'. That's a world problem, and a tough
one. But unless we can develop the science of liv-
ing together it's apparent that the achievements
of the industrial era aren't going to be enjoyed by
anyone very long.
Braden : As a practical matter we appreciate
that this can't be done overnight, even though we
recognize how urgent it is to bring our political
thinking up to a par with our scientific achieve-
ments. Actually it may be more important to de-
termine the direction in which a country is de-
veloping than it is to estimate the position which
it may be in at any given moment. The main thing
is to know whether a country is moving in the
direction of dictatorship and disregard for the
rights of man, or whether it is moving toward gov-
ei'iiment "of the jjeople, by the people, and for the
people".
Fisher : But coming down to our specific poli-
cies, Mr. Braden — how would you summarize
them ?
Braden : We believe in the inter-American sys-
tem as a practical operating arrangement among
the 21 American republics. We want to see our
inter- American system developed, to the benefit of
all of the people of the hemisphere. We believe
that the inter-American system can be and should
be a strong supporting pillar of the United Nations
Organization. We stand for collaboration for
mutual benefit. We think that cooperation should
be reciprocal — a two-way street.
Fisher: Collaboration for mutual benefit?
Can you give us a more concrete examijle of what
you mean ?
Braden: Suppose country A wants to expand
its public-health program and comes to our Gov-
ernment with a request for our cooperation.
Country A asks, for example, if we can furnish
technical assistance, trained personnel, and scien-
tific equipment. If after consideration the proj-
ect appears sound, we would offer to participate in
a joint program — not necessarily 50-50, but one
in which along with our contribution the other
country would contribute according to its resources
additional personnel, local material, or funds.
The program would become a genuine reciprocal
undertaking. It would benefit the country con-
cerned by raising the standard of health and hence
of living, and that would be of benefit to all of us.
Briggs: I should like to call attention, Mr.
Fisher, to Mr. Braden's reference to the fact the
country concerned had come to us with its project.
That is, that country would have taken the initia-
tive and thereby demonstrated its desire to have
the project carried out. We don't believe in ex-
travagance or paternalism. We do believe in
reciprocal cooperation on a sound basis.
Braben : Let me add this, Mr. Fisher : We firmly
believe in the original good-neighbor policy, as
President Roosevelt stated it many years ago.
You remember he said that the good neighbor
was "he who resolutely resjjects himself, and be-
cause he does so, respects others and their
rights . . . the neighbor who respects his obliga-
tions and the sanctity of his agreements in and"
with a world of neighbors"'. That means a
policy of respect — first self-respect, and then mu-
tual respect among nations. That's the funda-
mental policy that we have had, and still have,
in the Americas. We offer our friendship and
cooperation on a reciprocal basis, each country
giving in proportion of its abilities — economic,
intellectual, and in other fields. Through such
cooperation we can all benefit, from the raising of
standards of living and the growth of democracy
in each country.
Fisher : That's a very clear statement of a very
sound credo, Mr. Braden. And I want to thank
you and Mr. Briggs for giving us this review of
our foreign policy for the Americas.
Announcer: That was Sterling Fisher, Direc-
tor of NBC's University of the Air. He has been
interviewing Assistant Secretary of State Spruille
Braden and Mr. Ellis O. Briggs, Director of the
State Department's Office of American Republic
Affairs. The discussion was adapted for radio by
Seidell Menefee.
Next week we shall present a broadcast of out-
standing importance — ^^a joint State and Treasury
Department program. Secretary of the Treasury
Fred M. Vinson and Under Secretary of State
Dean Acheson will discuss the pending British
loan. Listen in next week at the same time for
this program.
JANUARY 6 AND 13, 1946
33
Disposition of Enemy Aliens From Other
American Republics ^
UNITED STATES MEMORANDUM
The State Department has communicated the
following memorandum to 12 American republics :
Bolivia, Colombia, Costa Rica, Dominican Repub-
lic, Ecuador, El Salvador, Guatemala, Haiti, Hon-
duras, Nicaragua, Panama, and Peru, which de-
ported alien enemies to the United States for
security reasons during the course of hostilities in
Europe. In effect the memorandum asks each re-
public to decide whether it wishes to have all the
aliens it sent here returned to it for ultimate dis-
position of its cases, or whether it wishes to have
the United States continue to exercise primary re-
sponsibility in deciding which of the aliens are
so dangerous as to make deportation from the
hemisphere essential and in taking action accord-
ingly.2
Memorandum
The United States Government currently has in
custody a considerable number of alien enemies —
the majority of them German nationals — who for
security reasons were deported to the United States
from other American republics during the course
of hostilities in Europe. During the last two
months, the Department of State has been engaged
in carefully reviewing the cases of the individuals
held in custody in order to decide which aliens
can with relative safety be released and permitted
to remain in the hemisphere and which aliens are
so clearly dangerous as to make their deportation
imperative under the terms of Resolution VII of
the Mexico City Conference.
This review is a time-consuming task and has
not been completed. A number of individuals,
however, have already been released from custody
and permitted to return to the country from which
they were deported. In making its decisions in
these cases, the State Department has been giving
great weight to the factor of native American
family ties. The Department is prepared to dis-
regard that factor only in those cases where the
alien appears to have been guilty of espionage or
sabotage, or has been a key figure in Nazi or other
' Released to the press Jan. 3.
' See Bulletin of Nov. 4, 1945, p. 737, and Dec. 30, 1945,
p. 1061.
enemy activity. Even as to those cases where no
native American family ties exist, the Department
is willing to release those who, although "pro-
Nazi" or otherwise hostile in their sympathies, took
no action (such as joining the Nazi Party) in line
with their sympathies. These standards are be-
lieved to be as lenient to the individual as is con-
sistent with the objectives of Resolution VII of the
Mexico City Conference ; they are closely parallel
to those followed by the Department of Justice in
selecting for repatriation alien enemies who were
resident in the United States.
With respect to expulsion from the hemisphere
of individuals found to be dangerous, it has been
the intention of the Department to initiate repatri-
ation proceedings early in 1946, but only after
(1) opportunity for a hearing has been given in
each case, and (2) the Ajnericau republic from
which the individual came has been consulted.
Recently, however, three of the American re-
publics involved have expressed themselves as not
in accord with the above-outlined program. Each
has assured the Government of the United States
that it is in full sympathy with the purposes of
Resolution VII of the Mexico City Conference and
intends to carry out its commitments under that
Resolution, but has stated that the aliens it de-
ported are still under its jurisdiction and that it
alone can decide which ones should be excluded
from the hemisphere under the terms of that Reso-
lution. Accordingly, each of the three Govern-
ments has requested the return of the aliens — or
some of them — whom it had deported to this
country.
In addition, some of the American republics in-
volved in the program have, for various reasons,
submitted to the United States Government re-
quests for the return of particular individuals,
without questioning the authority of the United
States Government to make the ultimate deter-
mination in their cases.
In this situation, the Government of the United
States wishes to follow a policy which will be
uniformly applicable. To each of the other Ameri-
can republics concerned, therefore, the Govern-
ment of the United States makes the following
proposal :
34
DEPARTMENT OF STATE BULLETIN
a. The United States Government stands ready
upon request to transfer to the other American
republic complete responsibility for determining
the proper disposition to be made of the aliens
whom the latter deported to the United States.
In that event, the United States Govermnent will
airange for the prompt return to the other re-
public's territory of all the aliens it deported to
the United States. The United States Govern-
ment cannot consent under these circumstances to
retain any of the aliens in its custody since (1) it
can accept the responsibility of deciding on the
disposition of cases only on a uniform basis appli-
cable to all the individuals from a particular re-
public and hence cannot undertake to decide only
that portion of the cases in the disposition of which
the other republic declares it has no interast, (2) it
cannot under its laws undertake to deport any
aliens from the hemisphere without itself mak-
ing the determination as to their dangerousness.
After the aliens have been returned to the other
reijublic, the United States Government will if
desired collaborate in matters concerning the ulti-
mate disposition of individual cases.
b. If the other American republic so desires, the
United States Government will continue to assume
primary responsibility in determining which of
the alien enemies deported to the United States
from the other republic should be excluded from
the hemisphere and in taking appropi'iate action
to that end. In that event, the United States Gov-
ernment will of course be ready to consult with
the other republic involved as to the disposition of
any particular aliens in whom that republic ex-
presses an interest. In particular, the United
States Government will arrange for the return to
the other republic of persons whom that republic
shall declare to the United States Government to
be citizens of that republic and whose citizenship
that republic has not cancelled or does not propose
to cancel. Any alien who is found not to be dan-
gerous will be released and will be allowed to
return to the other republic.
In order to know how to proceed in this matter,
the United States Government would like to have
an early expression from each of the American
republics involved as to which of the two courses
of action outlined above it wishes to pursue. The
United States Government believes that the second
alternative represents the more effective proce-
dure. If that course is pursued, decisions can be
promptly reached on the basis of all the informa-
tion available to both Governments and those indi-
viduals found to be dangerous can be repatriated a
direct from the United States without first return- \
ing them to the American republics from which
they came.
Pending the receipt of word from the other
American republics involved, the State Depart-
ment will in general proceed with its present pro-
gram of reviewing the individual cases and releas- ■
ing those who do not appear to be dangerous. It I
will not do so, however, in the case of the aliens 1
from the three republics which have already
requested that all aliens be returned.
HUMPHREY— Co»iin«e(i frotn page 25.
tion demands, rather, the continuous deliberation
of individuals whose resjjonsibility and chief in-
terest lies in substantive fields of knowledge not
necessarily encompassed by the rigid framework
of governmental administrative structures. It is
hoped that primary allegiance to the problem may
be attained through a technique which assumes a
committee of "experts" rather than a committee
of "representatives". As a matter of fact, specific
I^rovision has been made within the internal struc-
ture of the Conmaittee to deal with its problems on
a substantive rather than an agency basis.
Although membership is open to all agencies
having responsibilities in the field of foreign pro-
curement, an operating executive subcommittee, se-
lected by the whole Committee, is also provided
for. Of first importance is the principle that the
problems of procurement in specific fields of knowl-
edge are considered by subcommittees jyTo tern |
composed of individuals whose agencies deal most 1
largely with the particular fields in question —
medicine, law, physical sciences, aeronautics, and
soon.
In summary, the Department of State is pres- |
ently undertaking an expanded program of assist-
ance to this Government in the field of procure-
ment of foreign publications. It embarks upon
this task because it joins the other agencies of this
Goverimient in recognizing the transcendent im-
portance of such materials in day-to-day Federal
operations. The techniques embraced by this ex-
panded program, it is hoped, will greatly benefit
those resi^onsible for the effective conduct of the
public business.
International Organizations and Conferences
Calendar of Meetings
Anglo-American Committee of Inquiry
Far Eastern Commission
Inter-American Statistical Institute : Executive Committee
United Nations Organization : General Assembly
Caribbean Forestry Commission
International Commission of the Rhine River
International Labor Organization : Conference of Dele-
gates on Constitutional Questions
West Indian Conference
Washington
Hearings open on
January 7
Tokyo
Arrival : January 6
Rio de Janeiro
January 7
London
January 10
Port-of-Spain
January 14-24
Brussels
January 17
London
January 21
St. Thomas, Virgin
February 21
Islands (U.
S.)
Activities and Developments
Anglo-American Committee of Inquiry. The
names of organizations and individuals appearing
at hearings beginning January 7 at the Depart-
ment of State were announced by the Anglo-
American Committee of Inquiry.
The Committee of 12 headed by Judge Joseph
C. Hutcheson and Sir John E. Singleton was ap-
pointed to examine political, economic, and social
conditions in Palestine as they bear upon the
problem of Jewish immigration and the well-
being of the peoples now living therein and to
examine the conditions of the Jews in those coun-
tries in Europe where tliey have been the vic-
tims of Nazi and Fascist persecution.
The first to appear will be Earl Harrison, who
recently reported to President Truman on the
conditions of the Jews in Germany. He will be
followed by Joseph J. Schwartz, European Di-
rector of the American Jewish Joint Distribution
Committee which has done much of the relief
work in Europe. Dr. Schwartz is expected to
present a comprehensive survey of the numbers
and origins of the stateless persons in Europe.
Additional figures on Jews in Europe will be pre-
sented by the Hebrew Sheltering and Immigrant
Aid Society.
Robert Nathan, until January 1 the Deputy Di-
rector of the Office of Mobilization and Eeconver-
sion, will present the first statement on Palestine.
Others to be called during the week are : Amer-
ican Zionist Emergency Council; Zionist Organi-
zation of America; Mizrachi Organization of
America; Hadassah, The Women's Zionist Or-
ganization of America; United Zionist Socialist
Labor Party Poale Zion — Zeire Zion of America ;
American Jewish Conference; The American
Jewish Committee; American Jewish Congress;
American Council for Judaism, Inc.; American
Palestine Committee; Christian Council on Pal-
estine ; Foreign Missions Council of North Amer-
ica ; Agudas Israel of America ; Institute of Arab
American Affairs; Prof. Albert Einstein; Dr.
Walter Clay Lowdermilk, John L. Savage, James
B. Hayes, Professor Wohlman — all on Jordan
Valley Authority; Eev. Charles T. Bridgeman;
Hebrew Committee of National Liberation.
The Conference of Delegates on Constitutional
Questions of the International Labor Organiza-
tion will meet in London on January 21. The
countries represented at the meeting will include
the United States, France, Great Britain, Cuba,
the Union of South Africa, and China. The head
of the American Delegation will be Frieda S.
Miller, Chief of the Women's Bureau of the De-
partment of Labor, and the adviser to the Ameri-
can Delegation will be Bernard Wiesman of the
Department of State. Also present at the meet-
ing will be representatives of the employers' group
and the workers' group.
35
36
DEPARTMENT OF STATE BULLETIN
West Indian Conference.^ Subject to conclud-
ing transportation and accommodation arrange-
ments, the second session of tlie West Indian
Conference will be held in St. Thomas, Virgin
Islands of the United States, beginning February
21, 1946 under the auspices of the Anglo-Ameri-
can Caribbean Commission.
The first session of the West Indian Conference
was held in Barbados, British West Indies, in
March 1944.^ The former British co-chairman.
Sir Frank Stockdale, presided. (The present
British co-chairman is Sir John Macpherson.)
By the terms under which the Conference was
constituted, the second session is to be held in
United States territory under the chairmanship
of the United States co-chairman, Mr. Charles W.
Taussig.
An especial interest has been added to the forth-
coming Conference by the recent announcement
that both France and the Netherlands have joined
the Anglo-American Caribbean Commission, the
name of which is to be changed appropriately.
Kepresentatives of these Governments and their
Caribbean territories will also be present and will
participate in the discussions.
Further announcements making definite the date
and place of the Conference and referring to the
agenda will be made shortly.
Signing of Bretton Woods Agreements.^
Through December 31, 1945 and subsequent to
the initial signing of the Bretton Woods Fund and
Bank agreements on December 27, 1945, at which
time the agreements entered into force, signatures
were affixed to those documents on behalf of Chile,
Cuba, the Dominican Republic, Iran, Mexico, and
Peru.
The list of the signers of the two agreements
subsequent to December 27, 1945 is as follows:
December 28, 1945
Dominican Republic — Emilio Garcia Godot,
Ambassador of the Dominican Republic in Wash-
ington
Inin — Hussein Ala, Ambassador of Iran in
Washington
December 31, 1945
Chile — Marcial Mora, Ambassador of Chile in
Washington
Cuba — GuiLLERMO Belt, Ambassador of Cuba
in Washington
Mexico — Antonio Espinosa de los Monteros,
Ambassador of Mexico in Washington
Peru — HuMBERTO Fernandez-Davila, Minister
Counselor of Peru in Washington
The countries on whose behalf the two agi-ee-
ments were signed through December 31, 1945 are
Belgium, Bolivia, Brazil, Canada, Chile, China,
Colombia (Fund agreement only), Costa Rica,
Cuba, Czechoslovakia, the Dominican Republic,
Ecuador, Egypt, Ethiopia, France, Greece, Guate-
mala, Honduras, Iceland, India, Iran, Iraq, Lux-
embourg, Mexico, the Netherlands, Norway, Para-
guay, Peru, the Philippine Commonwealth, Po-
land, the Union of South Africa, the United King-
dom of Great Britain and Northern Ireland, the
United States of America, Uruguay, and Yugo-
slavia.
Tlie total of the quotas for the Fund and the
total of the subscriptions to the Bank of the. coun-
tries signatory to those documents are, respec-
tively, $7,824,500,000 (83.22 percent of the Fund)
and $7,600,000,000 (83.52 percent of the Bank).
Although a few of the signatory countries have
not yet deposited their instruments of acceptance
of the agreements, the totals of the quotas and
subscriptions of the countries which have deposited
their acceptances are well over the 65 percent re-
quired for the entry into force of the agreements.
Instruments of acceptance, as required in each
agreement in addition to signature, have been de-
posited on behalf of the following signatory
countries, with respect to which, as original mem-
bers, the agreements are now in force: Belgium,
Bolivia, Canada, Chile, China, Colombia (Fund
agreement only), Czechoslovakia, the Dominican
Republic, Ecuador, Egypt, Ethiopia, France,
Greece, Guatemala, Honduras, Iceland, India,
Iran, Iraq, Luxembourg, Mexico, the Netherlands,
Norway, Paraguay, Peru, the Philippine Common-
wealth, the Union of South Africa, the United
Kingdom of Great Britain and Northern Ireland,
the United States of America, Uruguay, and
Yugoslavia.
Beginning January 1, 1946 each of the two agree-
ments will remain open for signature on behalf
of the government of any country whose mem- 1
bership is approved in accordance with such terms
as may be prescribed by the Fund or by the Bank,
respectively.
' Rele.ised to the press Jan. 3.
' Bulletin of Mar. 18, 1944, p. 262, and Apr. 22, 1944, p.
384.
° Released to the press Jan. 4.
The Record of the Week
Release of Macmahon Memorandum on U.S. International
Information Program
SUMMARY OF MEMORANDUM
[Released to the press December 30]
Because modern international relations lie be-
tween peoples and not merely between govern-
ments, international public information activities
have become an integral part of the conduct of
foreign policy. This Government has long been
aware that foreign policy must be understood and
accepted both at home and abroad if it is to work.
Unless other peoples comprehend the background
against which our policies are made the policies
will not be clear, and there cannot develop the
closer understanding among peoples essential to a
peaceful world.
Long before the war was won, the State De-
partment authorized the undertaking of an exten-
sive survey of the pre-war and post-war inter-
national information activities and plans of both
private enterprises and th,e Government itself.
Although it was understood that the portrayal of
America must be accomplished primarily through
the normal private channels of press, radio, and
motion pictures, it was also necessary to study the
role of Government information activities.
Dr. Arthur W. Macmahon, Consultant on Ad-
ministration to the State Department and profes-
sor of political science at Columbia University,
with the assistance of Haldore Hanson of the State
Department, devoted nine months to a thorough
analysis of the entire question of international in-
formation. Dr. Macmahon's Memorand'u.m de-
fines the scope of governmental activity in this
field during the \Var, and indicates the gaps of
knowledge abroad which, for the present at least,
must be filled by governmental action.^ These gaps
^ Memorandum on the Postwar International Information
Program of the United States, b.v Dr. Arthur W. Macmahon
(Department of State publication 2438). This memo-
randum was released to the press Jan. 5.
are caused chiefly by the fact that other peoples
do not have enough background knowledge of
what is broadly typical of the United States to
interpret fairly the dramatic news episodes which
are reported by the news agencies.
Dr. Macmahon recommends that the United
States Government should not compete with the
private informational media and industries. He
feels that in peacetime the Government should not
conduct any general spot-news or radio-photo serv-
ices. The Government's supplementary role may
be illustrated as follows : It will keep its officers in
the field sufficiently supplied with full texts of im-
portant utterances and documents and with back-
ground on newsbreaks which may need fuUer ex-
planation so that our officers can meet the needs
of foreign newspapers and other informational
organs.
The Macmahon report also stressed the follow-
ing points :
The United States in peacetime will need a gen-
eral information staff throughout the world which
must be serviced by a headquarters workshop in
the United States. There are strong grounds for
associating this information staff with the diplo-
matic mission and the Department of State.
The Office of International Information and
Cultural Affairs should consist of divisions based
primarily on media. These would include: non-
competitive news, features, and related press ma-
terials; visual media; international broadcasting
contacts; and cultural relations.
In the matter of the field structure, a full con-
nection with the diplomatic missions is desirable.
A crucial phase of the work involves the interpre-
tation of policies and instant events and must be
performed in close contact with the heads of mis-
sions and with access to the flow of confidential
conmivmications.
Public policy properly emphasizes the need of
cheaper, quicker, equal, more abundant and uni-
37
38
DEPARTMENT OF STATE BULLETIN
versa! communication facilities to serve the regu-
lar news agencies, correspondents, and related
press interests.
International broadcasting takes several forms :
broadcasting by shoi't wave direct to the foreign
listener ; transmitting programs by point-to-point
short wave for rebroadcast over foreign stations
by medium wave ; and the export of recordings and
scripts for use on foreign stations. Direct inter-
national broadcasting by short wave is unique
among informational media in its ability to cross
international boundaries without censorship.
It seems clear that one entity, whether govern-
mental or private, should be licensed to conduct
all direct international broadcasting from the
United States, subject t« stringent general stand-
ards. These standards would require a high pro-
portion of sustaining programs and would limit
commercial advertising, if any, to the "institu-
tional" sort. The emphasis would be upon the
fullest possible utilization of the best domestic
programs, duly adapted to the various languages,
together with news and news commentary in those
languages.
In the motion-picture field, the industry's vital
stake in the preservation of its foreign market may
lead to various forms of voluntary collaboration.
It may be easier to get rid of slights to other peo-
ples in films produced in the United States than
to avoid in commercial films scenes which create
erroneous impressions about the United States
among peoples abroad. This fact increases the
importance of governmental activity in relation
to documentary films and related types.
The review of the flow of information which
private or semi-governmental enterprises may rea-
sonably support in peacetime reveals certain gaps
which the Government, in the conduct of its for-
eign relations, cannot afford to neglect. The gaps
of information can be filled by a number of media.
1. Missions should be supplied with the texts of
important Government speeches and pronounce-
ments for simultaneous release at home and
abroad. In this connection the Department's radio
news bulletin to the missions should be enlarged,
perhaps double the size of the present 3,500-word
daily edition.
2. Supplementing this radio bulletin, the
Department should send by air mail batches of
clippings and other background information on
the United States, suitable for rewriting by an
information officer in the field in answer to re-
quests from foreign newspapers for information
on particular subjects.
3. Assistance to foreign correspondents in the
United States is anotlier effective means of insur-
ing fuUez", fairer coverage in the foreign press.
Several officers of the Department should be
assigned to aid visiting journalists.
4. A morgue of stock pictures on scientific and
social developments in the United States would be
needed at the larger American missions.
5. Exhibits of photographic enlargements may
be either prepared by the home information organ-
ization and shipped in finished form, or produced
in the field from the collection of photo negatives.
6. Non-fiction motion pictures on the United
States will require continued Government assist-
ance in both production and distribution.
7. Radio recordings and script materials may be
sent to the missions for loan to local radio stations.
8. As a minor phase of the programming for
American short-wave broadcasting the Depart-
ment of State may produce a few official programs
each year.
9. Some Government-supported magazines, such
as the OWI publications in the Union of Soviet
Socialist Kepublics, should be continued.
10. Assistance to foreign publishers in obtain-
ing good translations of America's best books
should be continued.
11. As a field servicing unit for most of the fore-
going activities an information library will be
needed at most of the larger missions.
OBJECTIONS BY REUTERS, LTD., TO THE
MEMORANDUM
[Released to the press December 29]
In compliance with the request contained in a
letter received by the Department of State from
Reuters, Limited, the Department has postponed
the release date of Memorandum o-n the Postwar
International Information Program of the United
States, by Dr. Arthur W. Macmahon, from Decem-
ber 29 to January 5, at which time any statement
submitted to the Department of State by Reuters,
Limited, will also be released for publication. The
letter from Reutei's, Limited, follows:
December 29, 19Ji5.
Sir:
I am today instructed by Mr. Chancellor, the
JANUARY 6 AND 13, 1946
39
General Manager of Reuters Ltd, to lodge the
strongest possible protest with you at a number
of false statements regarding the activities of Reu-
ters Ltd contained in the "Memorandum on the
postwar International Information Progi-amme
of the United States" prepared by Dr. Arthur W.
Macmahon and issued by the State Department
for publication in the press of December 30th.
The section headed "Reuters" in Part III of
this booklet devoted to "Press Communications"
not only contains statements which are definitely
untrue but in total effect presents a false and mis-
leading picture.
I am also instructed, in the name of honesty,
decency, and fair dealing, to ask that the release
date of the booklet be postponed in order that
Reuters Ltd may have time to study in further
detail the allegations made by Dr. Macmahon, and
to present documentary evidence in refutation of
them for release simultaneously with the booklet.
We take particular objection to the statement
attributed to Mr. Guy Ray, second secretary of
the American Embassy in Mexico City, that "so
far as Mexico is concerned, at least, any argument
that Reuters and the B.B.C. are not British Gov-
ernment agencies is completely untenable".
We regard this and some of the other refer-
ences to Reuters as libellous and utterly untrue,
and we reserve full rights regarding future action
following the publication of the booklet in its pres-
ent form.
I am, sir.
Your obedient servant,
Paul Scott Rankine
Chief of Washington Bureau
Mexican Government
Investigates Charges
Against American Firms
[Released to the press January 5]
Reference' is made to the State Department's
press release of December 18. 1945 regarding alle-
gations made by Vicente Lombardo Toledano
charging private American firms with supplying
arms and ammunition to Mexican political fac-
tions. Reference is also made to its press release
of December 21, 1945, in which it was stated that
the Mexican Government had informed Ambas-
sador George S. Messersmith that ( 1 ) the Govern-
ment of Mexico does not associate itself with or
support the statements of Lombardo Toledano ;
and (2) the Mexican Government will see that the
appro]Driate investigations are made in an en-
deavor to clear up the matter and the American
Embassy will be informed of the result of such
investigation.^
The Mexican Under Secretary for Foreign Af-
fairs, Manuel Tello, has now informed Ambassador
Messersmith that the Mexican Government has
made the appropriate investigation to determine
what basis there might be for the statements made
by Lombardo Toledano, and that the Ministry of
National Defense and other appropriate agencies
of tlie Mexican Government which made investi-
gation found that there was no basis for such
statements made by Lombardo Toledano in his
speech of December 16, 1945 with respect to arms
shipments.
Death of Grayson N. Kefauver
[Released to tbe press January 51
Assistant Secretary Benton announces with deep
regret the sudden death on Friday, January 4,
1946, at Los Angeles, of Dr. Grayson N. Kefauver,
United States Representative on the Preparatory
Commission for the United Nations Educational,
Scientific and Cultural Organization.
Dr. Kefauver's appointment as United States
Representative on the Preparatory Commission,
with the rank of Minister, was recently announced.
Prior to that he had served as Adviser to the
United States Delegation to the conference held
in London in November 1945, which drafted the
Constitution for the United Nations Educational,
Scientific and Cultural Organization.
Dr. Kefauver was formerly dean of the school
of education at Stanford University, and was the
founder and first chairman of the Liaison Com-
mittee for International Education. Beginning
in April 1944 he served as Representative of the
United States to the Conference of Allied Min-
isters of Education in London. At the time of
his death Dr. Kefauver was in the course of a
speaking trip on the character and purpose of
the new international agency, UNESCO. He had
expected to return to Washington for a series of
' For substance of both press releases, see Bttlletin of
Dec. 23, 1945, p. 1022.
40
DEPARTMENT OF STATE BULLETIN
conferences on the future program of the Organi-
zation before going to London to attend the meet-
ing of the Preparatory Commission scheduled for
February 11.
Mr. Benton said :
"Dr. Kefauver's death is a shocking loss, de-
priving our Nation of one of the leading figures
in education for better understanding between the
peoples of the world. His unflagging devotion
and creative contribution to this cause helped ma-
terially to build a solid foundation for its future.
He will be sorely missed in the Department of
State as well as in the international associations
which he developed in London."
Visit of Brazilian Educator
Jorge Americano, rector of the University of Sao Paulo,
Brazil, is a guest of the Department of State on a tour of
representative universities in this country. He is accom-
panied by his 11-year-old son, Jorge, Jr., who like Dr.
Americano himself is making a second visit to the United
States, and by J. de Freytas Valle, chief engineer in
charge of buildings and grounds at the University of Sao
Paulo. Their itinerary includes universities of the na-
tional capital and New York and Syracuse, Harvard,
Pennsylvania, Chicago, and Michigan, as well as West
Coast institutions.
While in New York Dr. Americano will complete ar-
rangements for publishing a translation of his work, re-
cently issued in Portuguese, on The New Basis of Inter-
national Law.
Mail Service With Austria
[Released to the press January 5]
According to an announcement recently issued by the
Post Oflace Department, a limited mail service has been
instituted between this country and Austria. For the
present, articles acceptable for mailing will be restricted
to letters weighing one oimce or less and non-illustrated
postcards. These communications may be on business as
well as personal or family matters but are limited to an
■exchange of information and an ascertainment of facts.
The postage rates applicable are :
Letters : 5 cents each
Postcards : 3 cents each
It has not been found possible to establish a parcel-post
service between Austria and the United States because of
shipping and transportation difficulties in Europe at the
present time. It is expected that this service will be
resumed as soon as the facilities improve sufficiently to
allow it.
Registration, money-order, and air-mail services are not
available at the present time.
Carolyn Bradley Accepts Visiting
Professorship to Chile
Miss Carolyn J. Bradley, associate professor of fine arts
at Ohio State University, has accepted a visiting profes-
sorship in art at the University of Chile for the current
session.
Although this is her first visit to South America, Miss
Bradley has spent nine summers painting and studying in
Mexico and Guatemala. She has also painted in Portu-
gal, Italy, Germany, the French Basque country, and
Canada, and in the United States in California, New Jer-
sey, Indiana, Maine, and Massachusetts as well as in her
home State, Ohio. A contributor to several professional
magazines, she is author of a work book on costume design
which is used in many high schools and colleges.
Visit of Salvadoran Musician
Humberto Pacas, director and conductor of the symphony
orchestra at San Salvador, capital of El Salvador, is visit-
ing musical centers in this country as a guest of the
Department of State. In 1930, at the age of 25, after study
at the Conservatory of Guatemala and the Conservatory
of Mexico, Senor Pacas established the first mixed choir
in El Salvador and organized an Academy of Music. He
later directed the Salvadoran National School of Music,
and since 1940 he has been director and conductor of the
national symphony orchestra, which he aided in establish-
ing and has helped develop.
Sanitary Conventions of 1944
Canada
The Ambassador of Canada deposited with the Depart-
ment of State on November 20, 1945, the Canadian instru-
ments of ratification of the International Sanitary Con-
vention, 1944, and the International Sanitary Convention
for Aerial Navigation, 1944. Both of those conventions
were opened for signature at Washington, December 15,
1944 and came into force January 15, 1945 with respect
to those countries which had signed them without any
reservation requiring ratification.
United Kingdom
The British Ambassador informed the Acting Secretary
of State by separate notes, dated September 20 and re-
ceived in the Department of State on September 25, of the
application to certain territories of tlie International Sani-
tary Convention, 1944, and the International Sanitary
Convention for Aerial Navigation, 1&44, as follows :
International Sanitaey Convention, 1944
Aden (Colony)
Basil toland
Bechuanaland
Mavrititis
Seychelles — with reservations
Swaziland
JANUARY 6 AND 13, 1946
41
The reservations with regard to the Seychelles are as
follows :
(a) That no obligation can be accepted to take off ships
and treat locally persons suffering from infectious dis-
eases pending the construction of an Infectious Diseases
Hospital.
(6) That when such a hospital has been constructed,
the liability for accepting infectious-disease patients from
ships is limited to the capacity available in such hospital.
(c) That, pending the construction of suitable yellow-
fever quarantine quarters, no person who either is suffer-
ing from yellow fever or has come from a yellow-fever
endemic area without a valid inoculation certificate will
be permitted to land in the Seychelles.
(d) That in Article XI between the words "maintain"
and "free from Stegomyia" the words "as far as possible"
are added.
International Sanitary Convention fob Aebial
Navigation, 1944
Aden (Colony)
Nyasaland — with reservations
The reservations with regard to Nyasaland are as
follows :
(a) That mosquito-proof accommodation will be pro-
vided only to the extent that it may be required for persons
who are non-immune to yellow fever.
(6) That airfields and their surroundings cannot at
present be rendered and maintained free of insect vectors
of yellow fever and malaria.
By separate notes dated November 28 and received in
the Department of State on November 29 the British
Ambassador informed the Secretary of State of the appli-
cation of those two conventions to additional British terri-
tories with certain reservations as follows:
International Sanitary Convention, 1W4
Barbados
The Government of Barbados undertakes to comply with
the requirements of the first paragraph of article XI only
so far as may be possible.
British Honduras
The Government of British Honduras undertakes to
comply witli the requirements of the first paragraph of
article XI only so far as may be possible.
Leeward Islands: Antigua, Montserrat, St. Christopher
and Nevis, Virgin Islands
With the reservation in regard to article XI that the
Government will take measures to keep their ports as free
from Apdes aegypti as may be practicable, the cost of such
measures being a determining factor.
Trinidad
With the reservation in regard to article XI that the
Government will take measures to keep their ports as free
from Aedes aegypti as may be practicable, the cost of such
measures being a determining factor.
WUidward Islands: Dominica, Grenada, St. Lucia, St.
Vincent
With the reservation in regard to article XI that the
Government will take measures to keep their ports as free
from Aedes aegypti as may be practicable, the cost of such
measures being a determining factor.
International Sanitary Convention fob Aerial
Navigation, 1944
Barbados
(a) The Government of Barbados does not undertake
to comply with the provisions of paragraphs (3) and (4)
of article XII.
( 6 ) Further, with regard to article XII, the Government
of Barbados reserves the right, subject to the provisions
of article XIV (3), to refuse admission to any person
not in possession of a valid anti - yellow - fever inocu-
lation certificate who arrives from a region, that is to say,
a part of a territory, in which yellow fever exists in a
form clinically or biologically recognizable and who has
not undergone observation at the point of departure.
(c) With regard to article XIV, the Government of
Barbados is not prepared to undertake that aerodromes
will comply with the requirements of article 38 of the
International Sanitary Convention for Aerial Navigation,
1933.
British Honduras
(a) The Government of British Honduras does not un-
dertake to comply with the provisions of paragraphs (3)
and (4) of article XII.
(6) Further, with regard to article XII, the Govern-
ment of British Honduras reserves the right, subject to
the provisions of article XIV(3), to refuse admission to
any person not in possession of a valid anti - yellow-fever
inoculation certificate who arrives from a region, that is
to say, a part of a territory, in which yellow fever exists
in a form clinically or biologically recognizable, and who
has not undergone observation at the point of departure.
(c) With regard to article XIV, the Government of
British Honduras is not prepared to undertake that aero-
dromes will comply with the requirements of article 38
of the International Sanitary Convention for Aerial Navi-
gation, 1933.
Leeward Islands: Antigua, Montserrat, St. Christopher
and Nevis, Virgin Islands
(a) With the reservation in regard to article XII(3)
and (4) that aerodromes in the Colony shall not neces-
sarily comply with the requirements laid down in article
38 of the 1933 convention as regards the provision of
mosquito-proofed buildings.
(6) With the reservation in regard to article XIV (2)
that, where exceptional risk exists of the introduction of
yellow fever into the Colony by passengers from infected
areas who have not been immunized, the landing of such
passengers may be prohibited.
Tanganyika Territory
With regard to article XIV (1), the Government of
Tanganyika Territory undertakes to provide only the mos-
quito-proofed accommodation necessary for the accommo-
42
DEPARTMENT OF STATE BULLETIN
dation of passengers who are not in possession of valid
anti - yellow-fever inoculation certificates.
Trinidad
(a) With the reservation in regard to article XI (i.e.
article 36(7) of the 1933 convention as now amended) and
article XIV (i.e. article 47(2) of the 1933 convention as
now amended) that arrivals by air presenting valid inocu-
lation certificates showing that they are immune from
yellow fever will not be subject to quarantine measures
in relation to yellow fever, other than medical inspection
if they come from endemic areas, or surveillance if they
come from infected areas as defined in the footnote to
article 22 of the 1933 convention ; and that, without excep-
tion, arrivals who are not in possession of valid inocula-
tion certificates will be subjected to surveillance if they
come from endemic areas and to observation if they come
from infected areas, unless they have undergone observa-
tion at the point of departure from the endemic or infected
area.
(6) With the reservation in regard to article XIV that
aerodromes in the Colony shall not necessarily comply
with the requirement laid down in article 38 of the 1933
convention as regards the provision of mosquito-proofed
buildings.
(e) With the further reservation in regard to article
XIV that where, in the opinion of the Government, excep-
tional risk exists of the introduction of yellow fever into
the Colony by passengers from infected areas who have
not been immunized, the landing of such passengers may
be prohibited.
•^ THE DEPARTMENT ^
Office of International Information and
Cultural Affairs 1
132.10 Office of Internationai, Infoemation and Cul-
TUB-\L Affaiks (QIC) : (Effective 12-31-45)
I Functions. The Ofiice of International Information
and Cultural Affairs shall be responsible for :
A The promotion among foreign peoples of a better
understanding of the aims, policies, and institutions of
the United States.
B The coordination of policy and action for pro-
grams of the United States in the field of international
information and cultural affairs.
C The dissemination abroad of information about
the United States through all appropriate media.
D The promotion of freedom of information among
peoples.
' The Division of Cultural Cooperation and the Interna-
tional Information Division are abolished and their func-
tions are assigned to the eon.stituent parts of the Ofiice
of International Information and Cultural Affairs.
E The furtherance of the international exchange of
persons, knowledge, and skills.
F The integration with over-all United States foreign
policy of the programs and activities of other Federal
Agencies involving international interchange of persons,
knowledge, and skills.
II Organization. The Office of International Informa-
tion and Cultural Affairs shall consist of the following
organization units, with functions and responsibilities as
indicated :
A The Office of the Director
The Program Planning and Evaluation Board
The Secretariat of the Interdepartmental Com-
mittee on Scientific and Cultural Coopera-
tion (routing symbol SCO).
B The International Press and Publications Division
(routing symbol INP).
C The International Broadcasting Division (rout-
ing symbol IBD).
D The International Motion Pictures Division (rout-
ing symbol IMP).
E The Division of International Exchange of Per-
sons (routing symbol lEP).
F The Division of Libraries and Institutes (routing
symbol ILI).
G Area Division I (Europe) (routing symbol ADE).
H Area Division II (Near East and Africa) (routing
symbol ADN).
I Area Division III (Far East) (routing sym-
bol ADF).
J Area Diviison IV (American Republics) (routing
symbol ADA).
K Area Division V (Occupied Areas) (routing sym-
bol ADO).
III E^TNCriONS AND RESPONSIBILrnES.
A The Office of the DiHEcrroR. The Ofiice of the
Director, including deputies, consultants, assistants, and
necessary staff, shall be responsible for the direction and
supervision of the operations of the constituent organiza-
tion units of the Office.
B The Phogram Planning and Evaluation Board.
The Program Planning and Evaluation Board, under the
chairmanship of the Director of OIC, shall be responsible
for the issuance of policy and program directives which
shall govern the operations of the component parts of the
Office and the conduct of its program abroad. The Board
shall be composed of the Deputy Director, the Assistant
Directors of the Office, the Chiefs of Divisions, and the
Executive Director of the Interdepartmental Committee on
Scientific and Cultural Cooperation. The Board shall act
as a reviewing, coordinating, approving, and evaluating
body for policy and program directives, projects and infor-
mation materials, which will, in most cases, originate in
the area and media divisions. The responsibilities of the
Board shall also include :
1 The continuing analysis and evaluation of the
programs of the Office as carried out.
2 The appropriate attestation (upon request) of
tlie international educational character of films and re-
cordings.
JANUARY 6 AND 13, 1946
43
C The Secreh'Akiat of the Intekdb^paktmentai, Com-
MiTTEB ON Scientific and Cultural Coopeeation. The
Secretariat, under the supervision of the Executive Direc-
tor, shall have responsibility for the integration with over-
all United States foreign policy, and with the policies of
OIC, of the programs and activities of other departtaents,
agencies, and independent establishments of the Govern-
ment involving international interchanges of persons,
knowledge, and skills. In cooperation with representa-
tives from other Government agencies participating in, or
which may participate in, cooperative scientific, technical,
and cultural activities abroad, it shall, on behalf of OIC,
plan, coordinate, or initiate all such projects undertaken
under the auspices of the United States Government. The
Secretariat shall continue to review and evaluate such
current and past projects and to facilitate the appraisal
of future projects or proposals of participating agencies
in close cooperation with the appropriate divisions in the
Department of State.
1 The major functions of the Secretariat shall
include :
a Program Operations. The pi'ocessing of all
scientific, technical, and cultural projects of agencies
participating with the Department of State on their
activities abroad ; recommending the allocation to
participants of funds appropriated to the Department
of State for such cooi)erative scientific, technical, and
cultural projects with other countries; the handling
of all requests for the detail of United States Govern-
ment employees to foreign governments; correspond-
ence with the missions on all aspects of the program
involving participating agencies ; and close liaison
with operating units of Federal agencies having simi-
lar programs abroad not included in the budget of the
Committee ;
6 Program Control. The continuous analysis
and evaluation of the appropriate portions of the pro-
gram ; the planning of new procedures and forms to
insure that current information is easily available
from and to all agencies ; the facilitating of depart-
mental and field clearance for all reports and publica-
tions of the cooperating agencies under this program ;
assistance in the preparation of justifications and the
graphic presentation of the cooperative program to
the Bureau of the Budget and the Congress.
The International Press and
Publications Division
132.11 The International Press and Publications
DmsioN (INP) : (Effective 12-31-1.5) The International
Press and Publications Division, Office of International
Information and Cultural Affairs, shall be responsible for
the Initial formulation of operational policy with respect
to, and for the conduct of, the participation of the Depart-
ment in the international dissemination of information
through the media of press, publications (excluding books) ,
and related visual techniques.
I Functions. The major functions of the Division shall
include :
A Preparation and issuance, including arrangements
for transmission and reception abroad, in cooperation with
the other interested Divisions of the Department, of the
daily radio bulletin addressed to our missions abroad.'
B Coverage of news from Government departments
and agencies in Washington and, in cooperation with the
Secretariat of the Interdepartmental Committee, of activ-
ities of Government departments abroad.
C Preparation of special articles, periodicals, and
booklets, either for world wide distribution or of regional
interest only, the distribution to be through our missions
for republication abroad.
D Preparation and distribution of news letters on
science, art, and other fields, written on a popular rather
than a technical or professional level.
E Maintenance of necessary picture files, including
procurement for accession to files and service to users.
F Planning, presentation, and creation of exhibits,
both photographic and three dimensional.
G Preparation of film strips.
H Liaison with and assistance to visiting foreign
journalists and foreign correspondents residing in the
United States.
I Liaison with the publishers of magazines circulat-
ing abroad or containing materials which may be used
abroad.
J In general, the preparation and dissemination of
material of a mass media or popular nature, excluding
radio, motion pictures, and hooks.
The International Broadcasting Division
132.12 The Intf^national Broadoastino Division
(IBD) : (Effective 12-31^5)
The International Broadcasting Division, Office of In-
ternational Information and Cultural Affairs, shall be
responsible for the initial formulation of operational policy
with respect to, and for the conduct of, the participation
of the Department in the international dissemination of
information through the media of radio broadcasting.
I Functions. The major functions of the Division
shall include:
A The planning, scheduling, writing, casting, produc-
tion, and broadcasting of radio programs in such of the
principal languages as required in accordance with guid-
ances and directives from the Program Planning and
Evaluation Board; the directing of the content of such
programs to conform with such guidances and directives ;
arranging for contracts with privately-owned broadcasting
organizations to produce and transmit such programs and
the supervision of their production.
B The designing, building, installing, operating, and
maintaining, in close cooperation with the Division of
Foreign Buildings Operations, of the necessary technical
facilities, in the United States and abroad, for broadcasting
radio programs by short wave and relay ; arranging for
contracts for the use of privately-owned transmitters and
communications facilities for such purposes; and the ar-
ranging for commercial channels for the transmission of
programs point-to-point, for rebroadcast locally by medium
wave in the country of reception.
' The functions of the Special Assistant to the Secretary
for Press Relations relating to the preparation and issu-
ance of the daily radio bulletin are transferred to the
Office of International Information and Cultural Affairs.
44
DEPARTMENT OF STATE BULLETIN
C The writing, editing, and maintaining of a con-
tinuous news tile in English, based on news agency reports
and newspapers procured by the International Press and
Publications Division, as well as the reports of that Divi-
sion, so that all radio desks may have available for trans-
lation and broadcast a news report in good radio style;
and the maintaining of a music department, a library of
records, transcriptions, and scripts, a special events sec-
tion, and other services essential to good broadcasting
operation.
D The planning, writing, casting, and producing of
appropriate radio programs for transcription and the pre-
paring of scripts for distribution abroad.
B The recording, by agreement with the networks
and sponsors, of such domestic programs as may be suit-
able; and the rebroadcasting of such programs by short
wave or by shipment of transcriptions to radio stations
abroad.
P Initial preparation of instructions to United States
Foreign Service establishments on the over-all program of
the International Broadcasting Division, particularly on
the international exchange of radio programs, the placing
of recorded programs and script material, and the sclied-
uling of direct relays of short wave.
G Maintaining liaison with foreign radio correspond-
ents in the United States, to aid and advise, and, when
possible, to facilitate the transmission of their voiced
reports for rebroadcast in their own countries.
H Cooperation with other Offices of the Department
and other Government departments and agencies with
respect to international radio broadcasting and press com-
munication facilities.
The International Motion Pictures
Division
132.13 The International Motion Pictures Division
(IMP) (Effective 12-31^5) The International Motion
Pictures Division, Office of International Information and
Cultural Affairs, shall be responsible for the initial formu-
lation of oi)erational ijoliiy with respect to, and for the
conduct of, the participation of the Department in the
international dissemination of information through the
medium of motion pictures.
I Functions. The major functions of the Division
shall include:
A Initiating, planning, and developing motion picture
projects designed to promote the objectives of the informa-
tional and cultural program of this Government in other
countries.
B Representation on interdepartmental and inter-
governmental committees concerned with the official use
of motion pictures abroad.
C Advice to, and cooperation with, other officials of
the Department with other Government agencies in plan-
ning and developing programs as they involve the official
use of motion pictures abroad.
D Advice to, and cooperation with, non-governmental
agencies interested in such Government programs.
B In cooperation with area specialists and other ap-
propriate officers of the Department, the shaping of such
programs to fit the requirements of specific areas and
activities; and the initial preparing of instructions to
United States Foreign Service establishments with respect
to the foregoing and the following matters.
F Development and maintenance of advisory liaison,
with commercial and other private organizations and inter-
ests in motion pictures other than commercial policy
aspects.
G Cooperation with other Divisions of the Depart-
ment with respect to national and international confer-
ences and meetings, and in arranging and operating for
the participation of this Government therein so far as
motion pictures are concerned.
H Producing, procuring, adapting, editing, and re-
scoring of materials for use in the program above described.
I Acquiring prints of approved productions and equip-
ment as necessary to the presentation thereof.
J Preparing pertinent utilization materials.
K Distributing such films, equipment, and materials
for use abroad.
The Division of International Exchange
of Persons
132.14 The Division of IntBbnationai, Exchange of
Persons (IEP) : (Effective 12-31-45) The Division of
International Exchange of Persons, Office of International
Information and Cultural Affairs, shall be responsible for
the initial formulation of operational policy with respect
to, and the conduct of, the participation of the Department
in the international exchange of information, knowledge,
and skills so far as such operations involve the exchange
of students, professors, specialists, or other persons and
relationships between organizations in the fields of the
sciences, letters, and arts.
I Functions. The major functions of the Division
shall include :
A The development and maintenance of relationships
between the Department and scientific, technological, edu-
cational, professional, and artistic organizations, philan-
thropic institutions and foundations, and their counter-
parts in foreign countries in order to assist in effecting
international exchanges of knowledge and skills. In con-
nection with this function, the Division shall :
1 Inform these organizations of the ways in which
private activities can be correlated with the United
States Governmental programs.
2 Keep in touch with American organizations
which are privately supporting educational, scientific,
medical, and philanthropic institutions abroad.
3 Advise all Divisions of OIC regarding the vari-
ous developments in American culture — scientific, artis-
tic, social, educational, and literary.
B The initial formulation of operational policy, and
the initiation, coordination, and putting into effect of pro-
grams of the Department relative to the international
interchange of professors, teachers, specialists, and other
experts ; the planning of exchanges and their coordination
with other programs of OIC ; the cooperation with the
private United States agencies and organizations which
are concerned with such or similar exchanges ; and the
conducting of relations with official, semiofficial, and pri-
JANUARY 6 AND 13, 1946
45
[
vate agencies and Institutions — educational, learned, tech-
nical, and professional — to promote such exchanges, coor-
dinate information, and develop standards of policy and
operations concerning them.
C The initial formulation of operational policy, and
the initiation, coordination, putting into effect, of pro-
grams of the Department relative to the international in-
terchange of students in universities and trainees in
industry ; the conduct of the relations of the Department
with private agencies engaged in the international ex-
change of students and trainees; the cooperation with
private agencies and, through the Secretariat of the Inter-
departmental Committee on Scientific and Cultural Cooj)-
eration, with Government agencies in the development of
a coordinated body of standards of selection, placement,
and supervision of students and trainees on international
exchange; and the cooperation in all other matters con-
nected with the interchange of students and trainees.
The Division of Libraries and Institutes
132.15 The Division of LmEARiES and Institutes
(ILI) : (Effective 12-31^5) The Division of Libraries
and Institutes, Office of International Information and
Cultural Affairs, shall be responsible for the initial for-
mulation of operational policy with respect to, and the
conduct of, the participation of the Department in the
international exchange of information, knowledge, and
skills so far as such operations involve the establishment
of, assistance to, operation of, or the provision of books
and other cultural materials for, libraries, cultural cen-
ters, schools, or other institutions in foreign lands and
for other uses by the missions.
I Fttnctions. The major functions of the Division
shall include :
A Development and maintenance of programs de-
signed to facilitate the interchange of information,
knowledge, and skills by the procurement of printed
materials and their dissemination through institutional
activity and participation in cultural cooperation pro-
grams arising from international agreements.
B Interchange of publications, music, art, scientific
equipment, and other cultural materials, and the main-
tenance of the necessary procedures to promote the rapid
and effective interchange of cultural materials.
C Assistance in the establishment and effective
maintenance of libraries, institutes, and centers for the
OIC program.
D Assistance, on request, for correlative activities
such as library services to diplomatic and consular es-
tablishments.
E Liaison with the book trade.
P Planning and managing of the non-governmental
translation program for the publication, in foreign lan-
guages, of selected materials in English ; and, in English,
of selected foreign materials.
G Assistance and counsel to organizations engaged
in maintaining schools and other institutions in foreign
countries.
Area Divisions
132.16 Abba Divi-siONS : (Effective 12-31-45) Area Di-
visions I, II, III, IV, and V shall be responsible, each in
its assigned geographic area, for the initial planning of,
and the general supervision of, all programs of OIO con-
ducted in foreign lands. The administrative supervision
and servicing of all Government employees abroad engaged
in such programs shall be the responsibility of the Foreign
Service of the United States. All program planning, super-
vision, and servicing shall be carried out in the closest
cooperation with, and through the appropriate channels
of, the Foreign Service of the United States and the Geo-
graphic Offices of the Department.
I Area Division I (Europe) (AED) shall be respon-
sible for the programs of OIC in countries under the juris-
diction of the Office of European Affairs with the excep-
tion of Germany and Austria.
II Area Division II (Near East and Africa) (ADN)
shall be responsible for the programs of OIC in countries
under the jurisdiction of the Office of Near Eastern and
African Affairs.
III Area Division III (Far East) (ADF) shall be
responsible for the programs of OIC in countries under the
jurisdiction of the Office of Far Eastern Affairs with the
exception of Japan and Korea.
IV Area Division IV (Other American Republics)
(ADA) shall be responsible for the programs of OIC in
countries under the jurisdiction of the Office of American
Republic Affairs.
V Area Division V (Occupied Areas) (ADO) shall be
responsible for the programs of OIC in Germany, Austria,
Korea, and Japan.
A Functions. The major functions of these divi-
sions shall include :
1 Planning the informational and cultural pro-
grams in their respective areas. While programs will
be developed in the closest cooperation with the chiefs
of the media divisions, the decision as to content of pro-
grams shall rest with the appropriate Area Division
Chief, in accordance with the program and policy direc-
tives of the Program Planning and Evaluation Board.
2 Coordinating the various programs of OIC
abroad at the operating stage and establishing controls
over projects in operation, requests from the field for
action, and proposals originating elsewhere in OIC or
the Department.
3 Liaison with the appropriate Geographic Offices
of the Department and their component Divisions to
insure that the informational and cultural programs
will harmonize with the over-all policies and objectives
of the Department and that they are so planned as to
aid the effective implementation of these policies.
4 In close cooperation with the Office of the Foreign
Service, and other Offices and Divisions of the Depart-
ment, recruiting, training, and supervising of the field
employees engaged in the informational and cultural
program.
5 Analytical studies of field reports concerned with
program content and effectiveness to further the plan-
ning of more effective programs.
46
DEPARTMENT OF STATE BULLETIN
•^ THE CONGRESS ^
An Act Making appropriations to supply deficiencies in
certain appropriations for the fiscal year ending June 30,
1946, and for prior fiscal years, to provide supplemental
appropriations for the fiscal year ending June 30, 1946, and
for otlier purposes. Approved December 28, 1945. H.R.
4805, Public Law 269, 79th Cong. 29 pp.
Elimination of German Resources for War : Hearings
before a Subcommittee of the Committee on Military
Afi'airs, United States Senate, Seventy-ninth Congress,
first session, pursuant to S.Res. 107 (78th Congress) and
S.Res. 146 (79th Congress), Authorizing a Study of War
Mobilization Problems. Part 7, December 1945, I. G. Far-
ben Material Submitted by the War Department, ii, 102
pp.
First Deficiency Appropriation Bill for 1946: Hearings
before the Subcommittee of the Committee on Appropria-
tions, House of Representatives, Seventy-ninth Congress,
first session, on the First Deficiency Appropriation Bill
for 1946. Part 1. ii, 893 pp. [Indexed.]
First Deficiency Appropriation Bill for 1946: Hearings
before a Subcomittee of the Committee on Appropria-
tions, United States Senate, Seventy-ninth Congress, first
session, on H.R. 4805, a bill making appropriations to
supply deficiencies in certain appropriations for the fiscal
year ending June 30, 1946, and for prior fiscal years, to
provide supplemental appropriations for the fiscal year
ending June 30, 1946, and for other purposes. Part 1. ii,
600 pp. [Indexed.] Part 2. ii, 197 pp. [Indexed.]
^ THE FOREIGN SERVICE ^
Diplomatic and Consular Offices
The American Embassy at Peiping, China, will be closed
on December 31, 1945, and the American Consulate at
Peiping will be established on January 1, 1&16.
ADVEETISEMENT
Official Daily Service ,
^^SONAL^^^
FEDERAL^REGISTER
\, ''^* «i^^
• All Federal agencies are required by law to submit their documents of general applicability and legal
effect to the Federal Register for daily publication.
• The Federal Register presents the only oflScial publication of the text of Federal regulations and notices
restricting or expanding commercial operations.
{
A sample copy and additional information on request to the Federal Register,
National Archives, Washington 25, D. C.
■]
115 a year
$1.50 a month
Order from
SUPERINTENDENT OF DOCUMENTS, U. S. GOVERNMENT PRINTING OFHCE, WASHINGTON 25, D. C.
JANUARY 6 AND 13, 1946 4T
Contents — continued
The Department Page
Office of International Information and Cultural Affairs . 42
The International Press and Publications Division ... 43
The International Broadcasting Division 43
The International Motion Pictures Division 44
The Division of International Exchange of Persons ... 44
The Division of Libraries and Institutes 45
Area Divisions 45
The Congress 46
The Foreign Service
Diplomatic and Consular Offices 46
U. S. COVERKMENT PRINTING OFFICE: t946
PUBLISHED WITH APPROVAf OF DIRECTOR
OF BUREAU OF THE BUDGET
THE DEPARTMENT OF STATE
msiM
VOL. XIY, NO. 342 JANUARY 20, 1946
In this issue
I
The British Loan — What It Means to Us
SECRETARY OF THE TREASURY VINSON AND ACTING SECRETARY OF STATE ACHESON
General Assembly of UNO
REPORT FROM LONDON
First Inter-American Demographic Congress
By SARAH E. ROBERTS
Detail of U. S. Personnel to Other Governments
By HENRY H. McGEORGE
Bermuda Telecommunications Conference
By HELEN G. KELLY
For complete contents
see inside cover C
\
THE DEPAKT.AIENT OF STATE
BULLETIN
Vol. XIV -No. 342
Publication 2453
January 20, 1946
For sale by the Superintendent of DocumenlB
U. S. Government Printing Oflfice
Washington 25, D. C.
Subscription:
52 isBues, $3.50; single copy, 10 cents
Special offer: 13 weeks for ?1.00
(renewable only on > early basis)
The Department of State BULLETIN,
a weekly publication compiled and
edited in the Division of Research and
Publication, Office of Public Affairs,
provides the public and interested
agencies of the Government with
information on developments in the
field of foreign relations and on the
uork of the Department of State and
the Foreign Service. The BULLETIM
includes press releases on foreign
policy issued by the W hite House and
the Department, and statements and
addresses made by the President anil
by the Secretary of State and other
officers of the Department, as uell as
special articles on various phases of
international affairs and the functions
of the Department. Information con-
cerning treaties and international
agreements touhich the UnitedStates
is or may beconte a party antl treaties
of general international interest is
included.
Publications of the Department, cu-
mulative lists of which are piiblishetl
at the end of each quarter, as well as
legislative material in thefield of inter-
national relations, are listed currently.
0
ontents
The British Loan— What It Means to Us: Radio ^*s«
Broadcast 51
American Observers in Greek Elections 56
Proposals for Overseas Information Service: Letter
From the Secretary of State to the President . 57
Control of Atomic Energy:
Statement by the Secretary of State 58
Appointment of Committee 58
Tlie Bermuda Telecommunications Conference. By
Helen G. Kelly •. . . . 59
Industrial Property. Luxembourg 61
General Assembly of L^NO: Report From London
to the Office of Public Affairs, Department of
State 62
The First Inter-American Demographic Congress.
By Sarah E. Roberts 66
Detail of U. S. Personnel to Other Qovernments.
By Henry H. McGeorge 72
Ban on Exit Permits for Austria Lifted 73
International Organizations and Conferences
Calendar of Meetings 74
Activities and Developments:
Anglo-American Committee of Inquiry 74
U. S. Representative on Economic and t^ocial Council of
UNO 74
Civil Aviation Conference 75
The Record of the Week
Denial of Russell Xixon'f Conclusions on "Protection" of
German Assets 76
$25,000,000 Loan to Greek Government 78
Plants Available for Allocation on German Reparation
Account 79
Recognition of Austrian Government 81
li)33 Sanitary Convention. United Kingdom 81
United Kingdom Monetary Agreements. Czechoslovakia,
Ketherlands, and Norway 81
All-Hemisphere Cojjy right Conference 82
Inter-American Indian Institute. Guatemala 82
Military .\viatiun Mission. Bolivia 83
.\ir-Transport .Agreement With Czechoslovakia 83
The Department
Transfer of Functions Concerned With Consular Services
to Ships and Seamen 83
The FoREicN Service
Diplomatic Offices • . 83
PUBLICATIONS
Department of State 84
MAR 19 1946
The British Loan — What It Means to Us
RADIO BROADCAST
Participants
Fred M. Vinson
Secretary of the Treasury
Dean Acheson
Acting Secretary of State
Sterling Fisher
Director, NBC University of the Air
Announcer: Here are Headlines From Wash-
ington :
Secretary of the Treasury Vinson Says British
Loan Agreement Will Bring Increased Trade
and Prosperity; Adds Tliat Alternative to
Loan Is Division of World Into Viciously
Competing Economic Blocs, With Eesulting
Danger to World Peace.
Acting Secretary of State Dean Aclieson Says
Three Quarters of Future World Trade "\^^ill
Be Carried On in Dollars and Pounds Ster-
ling; Claims Provisions of British Loan
Essential To Free World Trade From Exces-
sive Restrictions.
This is the fifth in a group of State Department
programs broadcast by the NBC University of the
Air as part of a larger series entitled "Our Foreign
Policy.*' This time the Secretary of the Treasury,
Fred M. Vinson, and the Acting Secretary of
State, Dean Acheson, will discuss ''The British
Loan". Sterling Fisher, Director of the NBC
University of the Air, will serve as chairman of
the discussion. Mr. Fisher —
Fisher: The i)r()i)()sed loan to Great Britain has
been the subject of lively discussion since its terms
were announced last month.^ Many questions have
been raised by the jiress and public al)out the loan,
and it has seemed to us tliat tliey deserve frank
answers. Secretary Vinson, I'd like to ask you,
as one of the Americans who negotiated tlie agree-
' Released to the press .lati. 12. Separate prints of this
broadcast are availalile from the Department of State.
" For text of the financial agreement, see Bulletin of
Dec. 9, 194.0, p. 907.
ment, to describe briefly the proposed terms of the
loan itself, so that we may know whereof we speak.
Vinson : The outlines of the agreement are
simple, Mr. Fisher. We agree to advance a line
of credit of $3,750,000,000 to Great Britain to buy
the goods she needs from abroad to help maintain
her economy while she gets back on her feet. Pay-
ments of principal and interest— the interest rate
is 2 percent — start in 1951 and continue for 50
years, until the loan is paid up. The British, for
their part, agree to remove many of the discrimina-
tory exchange and import restrictions which now
exist. Without the loan it would be impossible for
tliem to do this. The net results will be of tre-
mendous value to us and to the whole world, in
terms of increased trade and prosperity.
Fisher: Now, Mr. Acheson, I know you have
taken a special interest in <iur economic policy, first
as Assistant Secretary of State for Economic Af-
fairs and more recently as Under Secretary of
State. What do you say on the Briti.sh loan?
Acheson : The loan will make it po.ssible for the
United Kingdom to get back to a peacetime econ-
omy and join us in developing an ever-increas-
ing volume of world trade wiiich both of us need
and the whole world needs.
Fisher: I have here what is perhaps the finest
collection of tough questions about the loan that
has yet been made up. I'll start off with some of
the milder ones and woik up to the meaner ones
later. Secretary Vinson, we might start with the
question of whether Great Britain really needs
a loan the size of tliis one. Some people are al-
ready saying, you know, that we are being taken
for a ride by the wily British.
Vinson: The debate in the British Parliament
does not support this conclusion. But there is al-
ways someone who is ready to assume that we
will get the worst of everything. The fact is,
we went into the subject of Britain's economic con-
dition very thoroughly, and here's where we came
out — for the next few years Britain will be short
several billion dollars which slie needs to buy es-
51
52
DEPARTMENT OF STATE BULLETIN
seiitial imports. In other words, in order to main-
tain their economy even at an austei"e level, in the
next few years the Britisii will have to pay ont
that ninch more abroad than they take in from
abroad. It is to our interest and the interest of
everyone else in the world that Britain be able to
get back on her feet. Hence the importance of the
loan.
Fisher: Why do the British find themselves
in sncli an unfavorable spot? Haven't they looked
after Britisii interests pretty well, even during
the war ?
Vinson: Xo — the war and war production have
always come first. So many Britisii industries
have l)een makino- war materials that now they
have vei'y few civilian <;(,()ds to export. But even
though their exports are low. tlie British must
import huge quantities of food and raw materials
in order to live. On top of all this, they have
been forced to sell about four and a half billion
dollars in foreign investments to keep the war
going. That cut their income further. And al-
though we supplied a lot of Britain's war needs
through lend-lease, she will ])e in debt at the end
of this year to the tune of about II billion dollars
to her Dominions, India, and other countries.
She has to export goods not only to pay for her
imports but also to pay off part of that debt. And
she is not yet able to produce many goods for
export. So you can see what she is up against.
AciiESON : We have to remember that Great
Britain has been at war for six years. Before the
war, Britain was one of the world's greatest trad-
ing nations. One fifth of all the world's com-
merce moved in and out of her ports. During
the war she poured everything she had into the
prosecution of the war. She had to do this; she
was right upon the edge of the battle, and her
existence depended on it. At the end of the war,
she found herself with only one third of her pre-
war trade. For a nation that has to bring in huge
amounts of goods to live, that could oidy mean
disaster, unless something were done about it.
Fisher: What would have happened, Mr. Vin-
son, if the loan negotiations had fallen through?
Vinson : The British could have existed by
cutting their imports and their living standards.
They would have cut their purchases from the
United States, and other countries, to the very
bone. This they would have had to do indefinitely
and it would have meant very bad business for us.
Before the war, almost one sixth of our exports
went to the United Kingdom alone, to say nothing
of the Dominions. In fact, we sold the British
much more than we bought from them. We want
to revive and increase that trade. But that isn't
all. I'd like to point out that we're. dealing here
with a problem of vast dimensions. Before the
war there were two great currencies in interna-
tional trade — the dollar and the pound sterling.
In V.)?>H half of the world's trade was done in these
two currencies.
AcHESON : And we could add that, now that Ger-
many and Jajtan are pretty well out of the picture,
something like three quarters of the world's trade
will be carried on in pounds and dollars. So it's
not only our trade with Britain or her trade with
us that is involved here.
Vinson : If both the dollar and the pound are
strong, it will mean that trade everywhere will be
free of excessive restrictions. The level of trade
for virtu.dly the whole world depends on the elimi-
nation of restrictions on the dollar and the pound.
That's a main reason why the proposed British
loan is important.
Fisher: Mr. Acheson, what specific advantages
will we reap from the proposed loan? Just what
do the Britisii undertake to do to open world
markets ?
Acheson : First, as soon as Congress approves
the credit, the Britisii are required to put an end
to exchange controls on day-to-day business trans-
actions with Americans. It will mean that an
American manufacturer who has sold goods to
Great Britain will be able to collect his proceeds
in dollars.
FisiiER : And after that ?
Acheson : Second, at the end of one year, it is
required that exchange controls be ended through-
out the whole sterling area.
Fisher : Will yon explain just what the sterling
area is, Mr. Acheson, before we go any further?
Acheson : The sterling area is the area where
the British pound sterling is most extensively used
for international transactions. It takes in the
British Empire and all the Dominions, except Can-
ada and Newfoundland, and it includes India,
Egypt, Iraq, and Iceland. But I should add that
under the terms of the agreement, at the end of a
year no restrictions will be imposed by the British
on day-to-day transactions in ani/ part of the
Morld.
Fisher: What about British import restrictions
JANUARY 20, 1946
53
on Americiin goods, Mr. Vinson? How long will
they be continued*
Vinson : They'll be very much lightened by the
end of 194(i, Mr. Fisher, becanse by that date the
British will have removed all discriminatory re-
strictions. Of course, tiiey will keep some controls
over the kinds of goods their people buy. They'll
have to, becanse they won't have foreign money
enougii to go around. But if they decide to spend
so much on tobacco, or .stockings, or machine tools,
American firms will be able to compete freely for
the business. Tliere will be no more discrimi-
natory quotas applied against the United States.
Fisher: And about imperial preference, Mr.
Acheson — the system whereby Britain gives tariff
preference to British Empire goods as compared
to American goods.
AcHESON : The British have agreed to support
the American proposals to reduce and eventually
eliminate these special privileges. In some ways,
the joint American and British statement on com-
mercial policy is the most important part of the
agreement. The United States has made certain
proposals for consideration by a United Nations
trade conference, wiiich we expect will be held late
next summer. The British have joined us in these
proposals for tariff reductions and an end to ham-
pering restrictions of all sorts.
Fisher: Now, Mr. Acheson, what bearing does
Britain's war record have on the loan?
AciiESON : Mr. Fisher, all of us have great ad-
miration for the British and we think they did
a great job in the war. We have great sympathy
for what they have suffered. But that has nothi)ig
to do with this loan. This loan is not a pen-
sion for a worthy war partner. It's not a hand-
out. It's not a question of relief, of bundles for
Britain. This loan looks to the future, not to
the past. It does the things that are necessary
to keep the kind of world we want. We're willing
to bet three and three-quarters billion dollars
that we and the British can make it work. It's
a case of opening up the trade of the world, so
that money will be good anywhere in trade. The
things the British have agreed with us to do will
go a long way toward accomplishing that — toward
making it possible for our people to go out and
do business freely anywhere in the world. That's
the kind of world we want to live in.
Fisher: The advantages do add up to quite a
lot. But there is some criticism of the actual
terms of the loan that I think vou ought to deal
with. For example, the interest rate. Mr. Vin-
son, isn't 2 percent a pretty low rate of interest?
Vinson : I would say it's a very reasonabJe
rate. When the British first came here to nego-
tiate, they would have liked an outright grant.
We soon convinced them this was impossible.
Their next preference was for a loan free of inter-
est. This was also out of the question. The
interest rate we finally agreed on was what we
could reasonably expect them to pay.
Fisher: But isn't there some provision, Mr.
Vinson, for omitting the interest payments under
certain conditions ?
Vinson : Yes — but Britain must always meet the
payments on the principal. However, in any year
whei'e the jDresent and prospective conditions of
international exchange are bad, and Britain's gold
and other reserves are low, and where her income
from foreign transactions falls below a certain
standard, the United States will waive the interest.
If in any year in the future conditions are so bad,
it would be better for us and for Britain to have
the interest waived than to have Britain default
on the entire credit, as she might otherwise have to.
Acheson : And remember this too : If interest
jiayments on the loan are waived by the United
States, then Great Britain must have her other
creditors waive interest payments on their loans
to her.
Fisher : Are the interest payments just post-
poned, Mr. Vinson?
Vinson : No, they'll be written off the books.
Acheson: If all the interest payments are met,
Britain will eventually pay us back $2,200,000,000
more than the credit we're advancing. That's a
very considerable sum.
Fisher : Contrary to what some people say, then,
Mr. Acheson, it's .strictly a business arrangement.
Acheson : I think it's wrong to think of the loan
ffimphj as a business arrangement. We're not in
this to make money out of Britain. We made what
everybody thought was a "businesslike arrange-
ment" after the last war. Foreign governments
floated loans, with engraved bonds and all the
trimmings, including much higher rates of interest
than we're asking the British to pay now. But
after the last .war the foreign governments found
it impossible to repay those loans. And why ? Be-
cause we tried to collect payments and interest on
our loans, wdiile at the same time we refused to let
our debtors sell us goods to get the dollars they
needed to pay off these debts to us.
54
DEPARTMENT OF STATE BULLETIN
Vinson : This time, we are milking the loan on
terms we believe will make repayment possible.
We have a foreign economic policy now which we
believe will permit other nations to trade with ns
and increase tlie total world trade. In fact, we
are working hard to establish a system wliich will
cause trade to expand so much that the British will
find it easy to repay us.
Acheson: As the Secretary lias said, we don't
intend to repeat the history of tlie AA'orld AVar I
loans.
Fisher: But, Mr. Acheson, can we be sure that
the British won't default on this loan?
Acheson : Of course, we take some chance.
There's always some risk involved in making loans.
But the total context of the agreement makes it
possible for them to pay this time. We know they
expect to and we believe they will.
Fisher: Then there's the matter of the lend-
lease settlement. Mv. Acheson, what about that ?
Isn't it a pretty generous settlement?
Acheson: No, I think it's a fair settlement.
Most of the lend-lease material we sent to Britain
has been used up against the eonnnon enemj-.
We've written that off. We didn't charge the
British for the bombs the RAF dropped on Berlin
and they didn't charge us airmail for delivery.
The remainder — war materials of various sorts —
would be worth very little to us. if we chose to
haul them home. We agieed that $650,000,000 was
a fair price for the supplies that remained, after
taking into account the reverse lend-lease which
the British furnished to us and which was not
consumed during the war. This time we have
looked at the entire war account and struck a bal-
ance, so that what the British will ])ay us will
completely clean up all of the mutual claims be-
tween our two countries arising out of the war.
Fisher; Now for some of the tougher ipiesl ions.
There have been a number of comments on the loan
to this effect ; Why didn't we get more of a quid
fro quo from the British? They have certain ter-
ritories in this hemisphere, for example, where we
need permanent bases. What about that, Mr.
Acheson ?
Acheson : The proposed loan, Mr. Fisher, is a
financial and economic agreement between two
great nations. We did not attempt to use the
leverage of the loan to obtain territorial conces-
sions. To demand such concessions as part of the
loan agreement would have been like saying to
Bi-itain, "Sure, we'll help you get back on your
feet, but not unless you hand over some of your
territoi'y. and do things our way from now on".
You can imagine how any self-respecting nation
would react to that. They would have felt we
were taking advantage of their necessities to drive
a sharp bargain in a totally different field. No,
the prof)osed loan is an economic question. It is
as essential to the foreign economic policy of the
United States as it is to the future economic pros-
perity of Great Britain. It's a mutual arrange-
ment for mutual benefits, arrived at out of nuitual
necessity. And if a lot of extraneous, non-eco-
nomic matters had Ijeen injected into the discus-
sion, it's doubtful whether an agreement could
ever have been reached.
Fisher : But, Mr. Acheson, do the same consid-
erations apply to such matters as comnumications
and civil aviation?
Acheson: Yes. I think they do. We have al-
ready worked out a very good agreement with the
British on connnunications. That was done at
the recent Bermuda Telecomnnuiications Confer-
ence. And for civil aviation, we expect to settle
our ditl'erences in that field around a conference
table, too.
Fisin-:R: Now. here's a basic question. Mr. Vin-
son: Can we afford this credit of $3.7r>(),000,000
to Great Britain? Where is the money coming
from ?
Vinson : Well, at the end of the war we were
spending 250 million dollars a day for war pur-
poses. The British ci'edit. over and above lend-
lease settlement, is equal to what we spent in 15
days on the war. Once Congress has approved
it. the credit will come out of the United States
Treasury from time to time, as Britain requires
funds. It will increase our debt by a little more
than one peivent, it's true. This credit is an in-
vestment, not an expenditure. We will get it
back with interest. And in view of what's at
stake — a healthy Britain and a healthy world
trade — I don't think we can afford not to make
the loan.
Fisher : Another question that is commonly
asked, Mr. Vinson, is whether we won't be setting
a precedent for loans to other countries if this
credit is advanced to Britain. I understand that
when all bids are in, we may be faced with appli-
cations for loans totaling 20 billion dollars from
our various allies.
Vinson: Mr. Fisher, no other nation plays the
part in world trade that Britain plays. She is in
JANUARY 20, 1946
55
a special position in this respect — it is incon-
ceivable that world trade conld be restored and
expanded unless the British are willinj;- and able
to join in the effort. In regard to the figure of
20 billion dollars which you mentioned. 1 would
like to point out tliat these large figures are just
somebody's guess on the total a/^pJicaflruif, and it
is far too high at that. The Government, of
course, is not lending any such large sums. The
Government is going to be very careful in con-
sidering foreign loan applications.
Fisiiek: Then there's this question, Mr. Vinson,
and it's also a very common one : In helping Brit-
ain to get back on her feet, won't we be financing
our competitor^ Won't this endanger American
trade, in the long run ?
Vinson: That notion is based on a fallacy —
the mistaken idea that there is only so much trade
to be had — the idea that foreign trade is like a
melon, and if someone else gets a big slice you get
a smaller one, in direct proportion. That's simply
not true. As trade increases, there is more for
everybody. And the principal purpose of this
loan is to increase international trade generally.
Acheson: It isn't competitive trade that we
fear, it's discriminatory trade — trade hampered by
high tariffs, exchange restrictions, quotas and so
on. The British loan enables us to move away
from these devices, which limit our ability to sell
abroad.
Vinson : And let's not forget the fact that Brit-
ain is normally our best overseas customer. She
can buy more abroad only if she is prosperous, and
if she sells more abroad. To restore British trade
is the first and most important move toward re-
storing normal American peacetime foreign trade.
Britain won't be a good customer of ours until
she's back on her feet. And we need her trade.
Fisher: Another interesting question, Mr.
Acheson, is this one : In making this loan to the
Labor government of Great Britain, won't we be
''financing Socialism'' '.
Acheson: No, we will not lie "financing So-
cialism". When the British Government takes
over any British private industry it makes pay-
ment in British Government bonds, and when in-
terest and principal on the bonds fall due it pays
them in pounds sterling. It gets the pounds ster-
ling by taxing the British people or by borrowing
from them or from British banks. It doesn't need
to come to us for its own currency. The loan we
are making is in dollars. The British Government
needs dollars not to finance expenditures in Britain
but to finance pui-chases in other countries and
esi^ecially in this country. The loan will very
greatly help the British people to finance what they
need to buy abroad. It has nothing whatever to
do with what their Government decides to buy at
home.
FisiiKR : Now we come to one of the toughest
questions of all. It's a fairly technical one, but I'll
try to state it sinii)ly. AVe're facing a danger of
inflation here at home. We don't have enough
goods to meet our own demands. If you suddenly
hand Great Britain three and three-quarters billion
dollars in purchasing power to buy goods over
here, won't that be an added pressure for inflation?
Mr. Vinson, that's one for you to answer, if you
can.
Vinson: Well, Mr. Fisher, if you suddenly
dumped three or four billion dollars in pnri'hasing
power on the American market, it might well be
an added force for inflation. But that won't hap-
pen. The credit will be spread over a period of
several years, and so it probidily won't add more
than one or two percent to inirchasing power at
any one time. And another thing — the British
won't be buying automobiles and refrigerators
and other things for which demand is greatest here
in the United States. The things they'll be buying
from us will be raw materials, machinery, and
things that we can spare, for the most part.
Finally, let me say this : If we get dangerous infla-
tion, it won't be because of the British loan. The
causes will be a lot nearer home than that. It will
be because we have failed to get our peacetime pro-
duction, rolling soon enough; (U- it will be because
controls are lifted too soon. These are the real
danger points — not the Briti.sh loan.
Fisher: I have one more question, Mr. Acheson.
In her present condition, is Britain a good invest-
ment ?
Acheson: We think she is. All Britain needs
is a chance to come back economically. If we
don't give her that chance, then we might as well
say good-by to our aim of a world with an expand-
ing trade and rising standards of living. Just
consider the alternative, and you'll see that we've
got to help the British to recover.
Fisher: What is the alternative?
Acheson : The alternative is that we do not get
the commercial arrangements which are necessary
for the survival of our free industrial system. The
56
DEPARTMENT OF STATE BULLETIN
alternative is the division of the workl into warring
economic blocs.
FisiiER : Do you agree with tliat dire prediction,
Mr. Vinson ?
Vinson : Yes, Dean is absohitely right. The al-
ternative to helj)ing the Britisli is to face an exten-
sion and tightening up of the wliole series of trade
and exchange controls that have been put in effect
during the war. The world would soon be divided
into a few relatively closed economic regions. That
would mean restricted trade, lower living stand-
ards, bitter rivalry, and stored-up hatred for the
United States as the richest nation in the world.
That would be a dangerous course to take. I'm
confident that we'll have sense enough to choose
the other way.
Fisher: To sunnnarize what you've said, then,
the proposed British loan is an essential step to-
ward the expanding world trade that we need if
we are to remain prosperous. Its terms offer great
advantages to both parties. It's a loan, not a gift,
and the total credit we shall advance will be very
small compared to the benefits we shall receive.
The alternative to tlie loan would be a reversion
to destructive economic nationalism such as we had
in the period between the last two wars.
Vinson : If there's time, Mr. Fisher, I'd like to
quote a few sentences from a newspaper editorial I
have here.
Fisher : Go right ahead, Mr. Secretary.
Vi.vson: It's from the A?-k(insas Democrat, and
I thiidf it puts the whole thing in 2)erspective as
well as anything I've seen. Here's what it says:
". . . Without this credit, Britain M'ould have
to embark on a fight for world trade by every
device she could invent . . .
"AVe would have to battle that set-up, with its
wealth of raw nuiterials and its manufacturing
skills, for trade in South America and every out-
lying corner of the world.
"It would be sheer stupidity to force such a
course on Britain. The cost to us in trade w^ould
eventually be far greater than the amount of the
loan, even if it's never repaid.
"More than that, Britain nui.st be strong if
there is to be a balanced world, with any prospect
for peace. She is our natural ally, and a feeble,
impoverished Britain . . . would weaken our
own position.
"This loan isn't an act of charity. It's just good
sense."
So says the Arkan.'<as Democrat^ and I agree.
Fisher : Well, thank you very much, Mr. Vin-
son and Mr. Acheson, for answering our questions
on the British loan.
Announcer : That was Sterling Fisher, Direc-
tor of the NBC University of the Air. He has
been interviewing Secretary of the Treasury Fred
M. Vinson and Under Secretary of State Dean
Acheson. The discussion was adapted for radio
by Selden Menefee.
Next week we shall present a discussion of our
policy in Korea and its implications for the Far
East and the world. Participants will be John
Carter Vincent, Director of the OfKce of Far East-
ern Affairs, and Edwin M. ^lartin. Chief of the
Division of Japanese and Korean Economic Af-
fairs of the State Department; and Col. Brainerd
E. Prescott of the War Department Civil Affairs
Division, former Civil Administrator of the
United States zone in Korea.
American Observers in
Greek Elections'
On January 11 the President appointed the fol-
lowing members of the United States Delegation
which will participate with representatives of
Great Britain and France in observing the coming
elections in Greece: Maj. Gen. Harry J. Malony,
U.S.A., who accompanied Ambassador Grady on
his recent ]U'eliminary trip to London and Athens;
Walter Hampton Mallory, who served on the Lon-
don Munitions Assignment Board, 1945; Joseph
Coy Green, Adviser on Arms and Munitions Con-
trol, State Department ; James Grafton Rogers,
former Assistant Secretary of State ; William Wes-
ley Wayniack, editor of the Des Moines Register
and Tribune; and Herman B. Wells, president.
University of Indiana. Members of the Delega-
tion, which will be headed by Henry F. Grady,
will have the personal rank of Minister. The mis-
sion is being sent to Greece in accordance with the
undertaking assumed by the United States Govern-
ment at the Crimea Conference to assist the peoples
of liberated European coiuitries in solving their
political problems by democratic means and in cre-
ating democratic institutions of their own choice.
'Released to the pres.s by the AVliite House Jan. 11.
JAJSVARY 20, 1946
57
Proposals for Overseas Information Service
lettp:k from the secretary of state
to the president 1
December 31, 1945.
My Deak Mr. President:
On August 31 you issued an Executive Oi'dei-
transferring to tlie Department of State the over-
seas information functions of the OtHce of AVar
Information and the Ottice of Inter-American
Affarirs. You ordered them to be consolidated,
until December 31, in an Interim International
Information Service within the Department. At
the same time you asked me to study our foreign
informational needs and to formulate during the
remainder of this calendar year the program to
be conducted on a continuing basis.
The overseas information functions of the war
agencies in this field have been transferred and
consolidated, as you directed. Their transferred
personnel has been reduced by half, and many of
their functions have been ended. The study which
you requested from me has been made, and on
January 1 a new Office of International Informa-
tion and Cultural Atfairs, within the Department,
will begin to conduct those activities of the former
war agencies which I feel should be carried on in
peacetime in the national interest.
All of this consolidation, reduction and plan-
ning has taken place without a break, anywhere
in the world, in the etfort to present what you
described on August 31 as a ''full and fair picture
of American life and of the aims and policies of
the United States Government."
There never was a time, even in the midst of war,
when it was so necessary to replace prejudice with
truth, distortion with balance, and suspicion with
understanding.
The past four months have imposed critically
important tasks upon our information officers in
every country. Many of them have been serving
in distant posts, cut off from their homes and fami-
lies, uncertain about their pay and status, yet they
have carried on in the finest traditions of American
foreign service. I should like to commend them,
and those who have continued servicing them at
home, for living up to the trust which their country
placed in them.
' Relea.sed to the press by the White House Jan. 10.
679885 — 46 2
Detailed proposals for the future overseas infor-
mation service, in terms of money and personnel
required after July 1, 1946, have been submitted to
the Bureau of the Budget for submission to you
and to the Congress. These ])roposals call for the
maintenance of American libraries of information
abroad, the supplying of documentary and back-
ground material by wireless and by mail to our
mi.ssions overseas, the scoring of documentary films
into foreign languages, the continued publication
of a Russian-language magazine for distribution in
the Soviet Union, the continuing supply of visual
materials about the United States, and the mainte-
nance in sixty-two countries of small staffs to con-
duct our informational and cultural relations,
under the direct .supervision of the chiefs of our
diplomatic missions.
To the.se activities will be added an extension to
many other countries of the work now being done
by the Department, principally in Latin America,
in exchanging students, scholars and technicians
on behalf of twenty-six agencies of the Federal
Government.
Finally, the proposals provided for the continu-
ance of short wave broadcasting on a reduced scale
until recommendations can be made to you and
to the Congress for the ultimate disposition of the
transmitters and the frequencies now in the Gov-
ernment's hands. Many countries are interested in
the development of this powerful new medium
giving us direct access to the peoples of other lands
who want to understand the American people and
their policies.
The Department's proposals will constitute a
modest program compared to wartime standards.
AVe shall not seek to compete with private agencies
of communication, nor shall we try to outdo the
efforts of foreign governments in this field. Our
program, however, calls for a significant expan-
sion, in terms of personnel and budget, of the pre-
war expenditures of the Deiiartment of State. It
will be a new departure for the United States, the
last of the great nations of the earth to engage in
informing other peoples about its policies and
institutions.
AA'^e cannot expect to carry on our foreign rela-
tions effectively unless we recognize this activity
{Coiitiiiiird oil next page)
58
DEPARTMENT OF STATE BULLETIN
Control of Atomic Energy
STATEMENT BY THE SECRETARY OF
STATE 1
In accordance with usnal practice, the resohition
as to the control of atomic energy - will niuloubt-
edly be referred to a committee, and our repre-
sentatives will have ample opportunity to make
certain that there is no misunderstanding as to the
purpose, scope, and operation of the Connnission.
The phases of the problem which the Connnis-
sion is to inquire into are the phases of the problem
raised by the discovery of atomic energy referred
to in the opening sentence of the proposed resolu-
tion. The problem referred to was not how atomic
energy is pioduced, but how it shall be controlled
in the interest of peace. I do not see how the
language used can possibly be construed to give
the Connnission authority to obtain information
which is not publicly available or which is not
voluntarily given to it.
Under the United Nations Charter neither the
Assembly nor any commission created by it has
authority to compel action on the part of any
state. The language of the resolution makes clear
that even as to the exchange of basic scientific in-
formation for peaceful purposes the Commission
has authority only to make reconnnendations.
Wliile our Delegation to the Assembly may vote
to authoiize a study by a commission of the inter-
national problems raised by the discovery of atomic
energy, such action could not give to the Commis-
sion the authority to decide what infoi-mation the
United States or any other government should
place at its disposal.
INFORMATION SERMCE—Contiiiiwd from page 55.
as, in your own words, "an integral part of the con-
duct of our foreign affair.s."
We would defeat our objectives in this program
if we were to engage in special propagandist plead-
ing. Our purpose is, and will he. solely to supply
the facts on which foieign ])eoples can arrive at a
rational and accurate judgment.
It is my firm belief tliat the proposed informa-
tional and culturid activities fif the Department
of State abroad will lielp to achieve the security
and peace which t)Ur people so ardently desire.
Sincerely yours,
James F. Byrnes
If the Commission, upon which the United States
is represented, recommended the exchange of any
stated information, this recommendation would
go to the Security Council. Action by the Security
Council rerpiires the concurrence of the five per-
manent members, including the United States.
Therefore, unless the United States concurs in the
recommendation it could not be adopted.
If the United States concurred and the Security
Council adopted the reconnnendation, it would
still be for the Government of the United States
by treaty or by congressional action to determine
to what extent that recommendation should be
acted upon. If action is required by treaty it
would take a two-thirds vote of the Senate to
ratify the treaty. Under all these circum.stances
I think the interests of the United States are fully
protected.
Before the first session our Delegation will have
a meeting, and we will have an opportunity to dis-
cuss all subjects on the agenda.
APPOINTMENT OF COMMITTEE i
Anticipating favoral)le action by the United Na-
tions Organization on the proposal for the estab-
lislnnent of a commission to consider the problems
arising as to the control of atomic energy and other
weapons of possible mass destruction, the Secre-
tary of State has appointed a connnittee of five
nieml)ers to study tlie subject of controls and safe-
guards necessary to protect this Government so
tliat the persons hereafter selected to represent the
United States on the connnission can have the bene-
fit of the study.
The connnittee will be requested, while engaged
in their study, to keep in touch with the appro-
priate congressional committees.
The connnittee will be composed of Under Secre-
tary of State Dean Acheson, who will act as chair-
man, Mr. John J. McCloy, former Assistant Secre-
tary of War, and the three men who supervised
and directed the development of atomic energy:
Dr. Vannevar Bush, Dr. James B. Conant, and
Maj. Gen. Leslie E. Groves.
' Released to the press Jan. 7.
' For text of the i-esohitlon as contained in the Connuuni-
qu6 on the Moscow Conference of the Three Foreign Min-
isters, see BuLiETiN of Dec. 30, 1945, p. 1032.
JANUARY 20, 1946
59
The Bermuda Telecommunications Conference
Bv HELEN G. KELLY
Ti
I HE UNITED STATES liaS loilg
had as objectives the im-
provement of international
telecommunications and the
reduction of rates on the international telecommu-
nications circuits. The first objective involved the
elimination of traffic bottlenecks at central points
in other countries where messages, coming in too
fast to Ije quickly handled, were held up. It also
included delays or complete stoppages due to
l)elligerent action by countries at war, when we
were neutral. The best solution to this problem
seemed to this Government to be the establishment
of direct radiotelegraph circuits between the
United States and foreign countries, so that a mes-
sage addressed to Shanghai, China, could be sent
there directly from San Francisco, rather than
following a circuitous route through intermediate
jjoints.
The second objective involved the negotiation
of arrangements by the United States private tele-
communication companies with foreign adminis-
trations or companies whereby the rates between
the two countries might be low enough so that the
American public might enjoy the benefits of cheap
and rai)id communication with the rest of the
M'orld. It seemed to this Government tliat direct
connnunication by radio would eliminate nnich of
the cost factor in sending the messages, and thus
assist in bringing about reduced rates.
With these two purposes in mind, this Govern-
ment over a period of 25 years has supported the
institution of direct radiotelegraph circuits wher-
ever possible. It attained considerable success in
its efforts with one exception — a very important
exception — namely, the British Connnonwealth of
Nations — Canada, Australia, Xew Zealand, and the
Union of South Africa (India, for the purpose of
this discussion, may be included in tlie group).
The primary reason for this Government's failure
with the British Commonwealth was the fact that
existing commitments to Cable & Wireless, Ltd.,
and its subsidiary companies, made it impossible
for the Commonwealth countries to gi'ant requests
for direct radiotelegraph circuits and lower rates.
After the outbreak of the war, concessions were
made because of urgent war needs. Direct cir-
cuits for the duration of the war and six months
thereafter were granted by Australia, New
Zealand, and India. Although negotiations were
carried on with the Union of South Africa, no
agreement was reached, and no temporary direct
circuit was installed to communicate with that
country. When it was evident tliat the war was
drawing to a close, it seemed to this Government
imperative that some kind of satisfactory final
settlement of the question of dii'ect circuits must
be reached before the dismantling of the tempo-
rary transmitters and receivers, which represented
a considerable outlay of money. The closing of
the direct circuits also meant a return to the old,
unsatisfactory, indirect methods of communi-
cation, which made London the center of most
messages to Africa, Europe, and the Far East,
and placed a heavy burden on the equipment and
personnel in that city.
The other question, wliich tliis Government was
equally anxious to discuss, was the difference in
rates between Commonwealth points and points
outside the Commonwealth. The example most
cited is the 59-cent rate from San Francisco to Aus-
tralia, while from Vancouver to Australia the same
message could be sent for 30 cents a word. Similar
differences existed elsewhere. For example, from
Singapore to London the rate was .''>0 cents, while
from San Francisco to Singapore it was $1.05.
This Government, therefore, accepted with
pleasure the invitation of the United Kingdom
' Miss Kelly, Chief of the Opei-ations Sectiou in the Tele-
ciiniiuunications Division, Office of Transport and Com-
munications Policy, Department of State, was secretary to
the American Delegation at the Bermuda conference.
60
DEPARTMENT OF STATE BULLETIN
Government to attend a conference at Bermuda to
discuss these and otlier British Commonwealth -
United States telecommunications problems which
had troubled the governments for years. Invita-
tions were received and accepted by all the Com-
monwealth countries, so that delegations from the
United Kingdom, Canada, Australia, New Zea-
land, South Africa, and India attended. The Con-
ference convened on November 21, 1945, and ended
on December 4, 1945, with tlie signing of an agree-
ment by all the governments attending and the
signing of a protocol by the United States and the
United Kingdom on the jirobleni of exclusive ar-
rangements. Thus the Conference in 10 days, in
an atmo.sphere of friendliness and cooi:)eration,
solved problems which had vexed the dijjlomats for
10 years. Both the Commonwealth and the United
States made concessions, and the results were pleas-
ing to all.
The chairnianship of the Conference was of-
fered to the United States at the suggestion of the
United Kingdom, since the idea of calling a con-
ference of tliis nature had originally been put for-
ward by the United States. James Clement Dunn,
Assistant Secretary of State, served as chairman
of the American Delegation and also as chairman
of the Conference.
The agenda submitted with the British invita-
tion contained a number of (juestions dealing with
])ost-war ]iro])lems to lie considered at the next
world teleconnnunications conference. It was fi-
nally derided that the Conference should confine
itself to the solution of telecommunications prob-
lems outstanding between the United States and
the coinitries of the Commonwealth. The agenda,
as finally adopted, was as follows :
1. Telecommunication rates for commercial,
government, and press messages, and division of
the tolls; treatment of press instructional mes-
sages
2. Future of trans-Atlantic cables, mainte-
nance of cables, including operation of cable shijjs
3. Continuance of existing, and possible estab-
lislnnent of new, direct radiotelegraph or radio-
telephone circuits
4. Procedure for recording any agreement
reached as a result of the discussions, and exchange
of information on methods of securing the im])le-
mentation of such agreement.
R.ei>resent«itives of private telecommunication
companies, both United States and Commonwealth,
and of the Commonwealth Connnunications Coun-
cil, attended the Conference as observers. Repre-
sentatives of the press also attended and were in-
vited to be present at the plenary sessions of the
Conference.
The principal results of the Conference were as
follows :
Direct Radiotelegraph Circuits. The three ex-
isting direct circuits between the United States
and the United Kingdom are retained, as well as
both circuits between the United States and Ber-
muda, the latter being subject to the agreement of
the Bermudian Government. Of the two tempo-
rary circuits in operation resi^ectively to Australia,
New Zealand, and India, one is to be retained on a
permanent basis.
The temporary circuits between the United
States and Gambia, the Gold Coast, and British
Gniana are to be discontinued.
The Government of South Africa agrees to un-
dertake a joint study with the United States to
determine whether conditions justify the establish-
ment of a direct circuit between the two countries.
New direct circuits to Jamaica, Palestine, Cey-
lon, the INIalay States (Singapore), and Hong
Kong will be established provided the respective
goverinnents agree.
It was further agreed that tralHc ordinarily
handled over tliese new and existing direct circuits
should be restricted to terminal trartic. However,
under certain conditions, such as emergencies or
where excessive delays were shown, transit traffic
might be accepted.
Rates. A ceiling rate of 'M) cents a word for
ordinary full-rate traffic and 20 cents for code was
established between the United States and the
Commonwealth countries. This arrangement
means that many of the more distant places in the
Empire will be closer to the United States in terms
of cost of comnmnication than ever before. Al-
though the American Delegation had hoped for a
ceiling rate of 20 cents a word, it accepted the
ceiling of 30 cents. The Commonwealth penny
press rate was recognized by this Government,
although the American Delegation found it impos-
sible to accept the British suggestion that this low
rate be extended to United States - British Com-
monwealth press comnnniications. A ceiling press
rate of ti'/s cents was set between the United States
and the Commonwealth. This lowered rate
should facilitate the dissemination of news of the
JANUARY 20, 1946
61
United States in the Commonweidtli :nul vice
versa.
The Coninionweahh governnients would not ac-
cept the United States suggestion that press-
service messages be admitted at press rates. Nor
was an agreement reached on the (luestion of a full
rate for government messages, instead of the 50-
percent redui'tion usually allowed. This proposal
had been urged by the British. The question of
the rate for urgent messages was also left unsolved.
However, it was felt by all the parties concerned
that these were comparatively minor matters, and
that the reaching of a ceiling rate satisfactory t(j
all on ordinary messages would aid greatly in
bringing order into the world teleconnnunicutions
system.
Agreement was reached on terminal and transit
charges, on the 50-50 division of tolls, and on the
use of dollars and sterling as a basis of exchange,
instead of the gold franc.
Technical Developments. The Conference
viewed favorably a proposal submitted by the
American Delegation that steps be taken to assure
the eventual adoption on an international basis of
a standard code for the speedy transmission of
messages. This proposal was based on the belief
that the radioteletypewriter system, at present in
use by the U. S. Army and Navy, will eventually
supersede the current Morse-code circuits. The
five-unit code used by the Army and Navy, which
permitted great flexibility in their world-wide
systems, was proposed for adoption as the standard
code for universal use.
The Conference agreed also to the holding of a
meeting in AVashington between repre.sentatives of
the United States and the British Commonwealth
to witness demonstrations of two distance indica-
tors used in aeronautical radio favored respectively
by the United States and Canada, in order to com-
pare their respective merits with a view to arriving
at a definitive position in the matter not later than
January 31, 1946.
E,rcJu.slre Arrangements. The United States
has for some time been endeavoring to establish a
direct radiotelegraph circuit between Saudi Arabia
and this country. The United States has impor-
tant oil interests in Saudi Arabia, and the unsatis-
factory connnunications between the two countries
have hampered the efficient operation of the com-
pany there. In a separate protocol signed by the
United Kingdom and the United States, the former
undertook to inform the Saudi Arabian Govern-
ment that the United Kingdom Government would
not wish an agreement between a British company
and the Saudi Arabian Govermnent to stand in the
way of the establishment of a direct circuit with
the United States. Two days after the signing of
this protocol, the British Minister at Jidda in-
formed the Saudi Arabian Foreign Office of the
views of his Government as set forth in the
Ijrotocol.
All of the countries attending the Conference
also undertook not to support or approve efforts
by their governments to prevent or obstruct the
establishment of direct circuits between the United
States or British Commonwealth points and other
countries.
The foregoing discussion represents the main
tangible results of the Bermuda telecommunica-
tions conference. The intangible result — that is,
the spirit of mutual comprehension and confi-
dence which will allay future suspicions and mis-
apprehensions— cannot be assessed in terms of
dollars and cents ( and is perhaps all the more valu-
able on that account). It can only be hoped that
the Bermuda conference has set an example to
other fields of endeavor in which the countries of
the Briti-sh Commonwealth of Nations and our-
selves have an interest.
Industrial Property
Luxembourg
The Swiss JMinister informed the Secretary of
State in a note dated November 30, 19-15 that in a
note dated November 19, 1945 the Legation of the
Grand Duchy of Luxembourg at Bern informed
the Swiss Federal Council of its Government's
adherence to the Convention for the Protection
of Industrial Property signed at London June 2,
1934,' revising the Paris convention of March 20,
1883, as revised at Brussels on December 14, 1900,
at Washington on June 2, 1911. and at The Hague
on November 6, 1925.
In conformity with article Ifi of the London
convention, the adherence of Luxembourg will
take effect one month after the sending of the com-
munication bj' the Government of the Swiss Con-
federation to the other countries of the Union,
that is, from December 30, 1945.
' Treaty Series 941.
62
DEPARTMENT OF STATE BULLETIN
General Assembly of UNO
REPORT FROM LONDON TO THE OFFICE OF PUBLIC AFFAIRS, DEPARTMENT OF STATE
London, Jan. 1.9. — Mi-s. Eleanor Roosevelt, a
member of the American Delefjation to the United
Nations Assembly, told a "ii-onp of rejiresentatives
of some 4U national and international organiza-
tions having headquarters or branches in London
that private organizations can perform one of the
most important roles in helping to make the L'nited
Nations a success. This meeting, the first of a
series to be held in London, came during the sec-
ond week of United Nations Assembly activity,
which was studded with impi-essive declarations
by many of the world's leading statesmen. It was
held in Church House, scene of many important
LTnited Nations committee meetings.
Mrs. Roosevelt's Talk to Group Representatives
Careful explanations of the methods and prin-
ciples of the various international organizations
can go a long way toward strengthening the fabric
of international cooperation, Mrs. Roosevelt said.
She added, "You can tell your organizations a
gi'eat deal that they would never learn in any other
way. Tell them about the people who are here,
how decisions are arrived at, what agreements are
reached. You can educate people to feel a per-
sonal responsibility for the working of the United
Nations. We must all learn the discipline of not
getting discouraged. We must always keep in
view our main objective, building an atmosphere
where people can work to keep the world at peace."
The former First Lady stressed that one of the
most important tasks of the LTnited Nations was to
develoj) better economic conditions throughout the
world for all the peoples of the world. Mrs.
Roosevelt expressed the wish that there miglit be
more women delegates and advisers at future
Assembly meetings.
Referring to plans for further similar meet-
ings of Assembly delegates and advisers with
organization representatives for the period of the
Assembly meeting. Mrs. Roosevelt said that she
believed that such programs were an important
element in the democratic formulation of inter-
national policies. One representative asked Mrs.
Roosevelt her opinion on whether nations should
now surrender their sovereignty to a central body.
Drawing a parallel between the development of the
United Nations and the United States and other
federated governments, Mrs. Roosevelt explained
that such a surrender of sovereignty was not ex-
pedient at this time "As in America, the individual
States will relinquish theii' powers only when the
necessity for such a move proves itself to be for
the good of the whole group. History has shown
that such a granting of sovereignty evolves grad-
TUilly. The development of S])ecialized agencies
like the Food and Agriculture Organization and
other international bodies indicates that the indi-
vidual countries will delegate authority to an in-
ternational group when it is in their own best
interest", she replied.
Organizing the United Nations
Over at Central Hall, Westminster, where the
LTnited Nations first General Assembly was in
session, delegates of the .51 countries completed
several organizational duties vital to the smooth
operation of the LTnited Nations. In this first
full week of activity, they organized the important
Security Council and the Econtimic and Social
Council. A further step towaixl completing the
United Nations constitutional machinery was the
organization of the six main committees through
the naming of the vice chairmen and rapporteurs.
At the same time the general debate on the report
of the Preparatory Commission was going on.
This was opened dramatically by U. S. Secretary
of State Byrnes, whose address was followed by
important statements by leading statesmen, in-
chidiug Ernest Bevin, British Foreign ilini^ter,
and .Jan jNIasaryk, Czechoslovak Foreign ^Minister.
In completing the membership of the Security
Council, the General Assembly followed the plan
laid down at San Francisco and selecteel countries
on the basis both of geographical factors and the
contribution they could make to the maintenance
of peace. Poland, Australia. Brazil. Mexico, i
JANUARY 20, 1946
63
Egypt, and the Netherlands were elected to serve
with the permanent members: France, China,
Union of Soviet Socialist Republics. United King-
dom, and United States. Dr. Wellington Koo, of
China, stated that while he was satisfied with the
present make-up of the Security Council, ho hoped
that the large continent of Asia would be better
represented in the future. French Foreign Min-
ister Bidault supported this view. The Council
held its opening meeting Thursday afternoon with
Norman O. Makin, Australian Navy Minister,
presiding. Purely of an organizational nature,
the meeting dealt with adoption of rules of proce-
dure and the setting up of a committee of experts
on the establishment of permanent rides.
Edward R. Stettinius, Jr.. permanent U. S. rep-
resentative to United Nations and member of the
Security Council, emiihasized to the Council that it
"must see that the peace is kept in fact". He
added, "whether it succeeds or not. however, de-
pends upon the manner in which the members of
the Security Council discharge the special obliga-
tion which they have assumed. This is the obliga-
tion to agree so that the Council may be able to
act and act effectively. To meet this obligation
will often be difficult. It will require the highest
kind of statesmanship from all the member na-
tions large and small. But it is an obligation that
arises from the necessities of mankind's survival
on this planet. It has been tried and tested and
not found wanting in the creation of the United
Nations."
The agenda for the first meetings of the Security
Council that was recommended by the Prepara-
tory Conunission and adopted by the Council in-
cludes the following items:
A. Reconnnendation to the General Assembly
regarding the appointment of the Secretary-
General.
B. Atloption of directive to the Military Staff
Committee to meet at a given place and date.
C. Discussion of the composition and organiza-
tion of the staff to be assigned to the Security
Council.
D. Discussion of the best means of arriving at
the conclusion of special agreements for the con-
tribiition of armed forces and other assistance for
the purpose of maintaining international peace
and security.
E. Consideration of reports and reconnnenda-
tions from the General Assembly.
Economic and Social Council
Indicating the general unanimity of opinion at
the cimference, the Assembly elected 17 of the 18
members of the Economic and Social Council by
tlie necessary two-thirds vote on the first ballot.
The balloting f(n' the eighteenth seat was dead-
locked until New Zealand withdrew in favor of
Yugoslavia. In balloting for terms of office, the
Assembly voted three-year tenure to China. Peru.
France, Chile, Canada, and Belgium, two-year
terms to U. S. S. R., United Kingdom, India, Nor-
way. Cuba, and Czechoslovakia, one-year terms
to (ireece, Lebanon, Ukraine, U.S.A., Colombia,
and Yugoslavia. According to the United Na-
tions Charter, the Economic and Social Council
"may make studies with respect to international
economic, social, cultural, educational, health, and
related matters and may make recommendations
with respect to any such matters to the General
Assenddy, to the Alembei's of the United Nations,
and to the specialized agencies concerned"'.
Delegates at the General Assembly have ponited
out repeatedly that the causes of war are often
economic, and because of this great importance
has been attached to the work of the Economic
and Social Council as a basic means for preventing
war. The World Federation of Trade Unions,
claiming a mend)ership of 65 million, has requested
"full representation" in the Council. This re-
quest, together with the WFTU's desire for rep-
resentation on the General Assembly in a "consul-
tative capacity," poses the first important consti-
tutional issue which has so far faced the United
Nations. Russia, the Ukraine, and France voiced
strong support for the WFTU prfiposal. It was
turned over to a six-nation subcommittee of the
Steering Committee for further study and recom-
mendation.
Preparatory Commission Praised
The week's plenary sessions were taken up to
a large extent with the debate on the report pre-
sented by the Pi'eparatory Conunission. AVithout
exception, the delegates who have so far spoken
to the Assembly have given full support and
conuneudation to the groundwork done In' the
Preparatory Commission and placed full confi-
dence in the war-prevention machinery of the
United Nations. U. S. Secretary of State James
Byrnes opened the discussion on the report late
^Monday afternoon. Mr. Byi-nes outlined two pri-
64
DEPARTMENT OF STATE BULLETIN
mary tasks as tlie most important woik before
the organization in the coming months: the pro-
vision of the armed force which the Security
Council needs to have to maintain peace, and es-
tablishment of tlie commission for the control uf
atomic energy. He went on to pledge "full and
wholehearted cooperation"' by the United States
and reassured the delegates that "both tlie United
States Government and its people are deeply con-
scious of their responsibility". The Secretary
painted no flowery pictures of quickly and easily
obtained success in this most important task. He
warned again.st expecting feats of magic overnight.
''Let us beware", he said, "of the die-hard en-
thusiasts as well as the die-hard unl)elievers. Let
us avoid casting excessive burdens upon the insti-
tutions of the United Nations especially in their
infiincy."''
Ecjually as im[)ortant a statement was that made
by British Foreign Minister Erne.st Bevin Thurs-
day morning. He praised the Preparatory Com-
mission's work as a "triumph of detailed organi-
zation" and launched directly into sujjport for a
strong international secretariat and an interna-
tional ci^il-service commission. "The way in
wliirh this Organization is administered will in
large measure affect the ciMifidence which the jteo-
ples of the world rejiose in it", he said. He urged
caution that the Organization should not develop
into an extravagant and costly mechanism but at
the same time warned against "niggardliness which
would frustrate or hinder its development. Ac-
cording to an estimate I have heard", he said, "the
cost per annum of the United Nations to all 51
nations will be less than half the cost to the United
Kingdom alone of a single day in the war just
ended"'. He also warned against changing the
world "in a moment" and explained that "security
must be devised in such a way that those powers
which have been victorious in this war can . . .
grow together with confidence so that this Organi-
zation itself may become the real answer to all the
devilish devices of war."'
"Calm, Realistic Optimism"
Foreign Minister Jan Masaryk of Czechoslo-
vakia paid tribute to the Pi-eparatory Commission
report and the efficient work of the temporary
secretariat. "I wish to go on record voicing calm,
realistic optimism", he said. "Wars should be
stopped by controlling all means for war, whether
they are physical, chemical, biological, psychologi-
cal, or .sociological. Within the framework of our
Organization, there should be an international pro-
tection of science against abuse of its progress for
political or militaristic schemes. Humanity should
be safeguarded against the result of abuse of sci-
entific inventions. The armament industry to-
gether with the latest devastating inventions
shouhl be ]iut under the control of the United
Nations", he added.
Carlos Lleras Restrepo. Colombian delegate, ad-
dressed the Assembly Wednesday and in his dis-
cussion on the Preparatory Connnission report
stressed the importance of the economic and social
work of the LTnited Nations. "The social-eco-
nomic task of the LTnited Nations cannot be now
and shall not be a mere return of the past. We
begin at a new starting point and go forward to an
equally new objective. The old mechanism of in-
ternational economic relations cannot be rebuilt
without incorporating a more generous and uni-
versal conception of economic pj'ogress. . .
We aie confident that in this field of economic and
social justice a fruitful internationalism will re-
pface the selfish outlook of isolated national
groups. In general terms we must seek to raise the
standardsoflivine: and employment for all. . . ."
Danish Foreign Minister Gustav Rasmussen
told the Assembly Tuesday that "Denmark views
with satisfaction the sober appreciation of prac-
tical realities which underlies the Charter of the
United Nations. The necessary safeguards have
been established to distribute the weight of re-
sponsibility in harmony with the powers and po-
tentialities of the difl'erent nations." He ex-
plained that the Charter is based on the principle
of equal rights for all member states. "But it is
equally true, and in our opinion a material im-
provement on the Covenant of the League of Na-
tions, that the ultimate responsibility for can-ying
out vital political decisions must lie with the great
powers which alone are in a position to enforce
them", he added.
Mr. Gromyko's Speech
In a memorable speech on Friday morning
Andrei A. Gromyko. Chief of the Soviet Delega-
tion, told the General Assembly that "the Soviet
Delegation more than once enqihasized at the con-
ference at San Francisco the fact that the success
of the new Organization would directly depend
on how the experience of collaboration of the
democratic countries during the war would be
JANUARY 20, 1946
taken into account, and to what degree in the fu-
ture true collaboration of all member nations
would take place."
"The endeavors to counterpose big states with
small ones". Mr. Gromqko continued, "cannot be
65
regarded with sympathy in the United Nations
Organization, for this Organization is the body
to protect all the peace-loving states big and small.
This Organization is designed to protect the inter-
{Continucd on piif/e 83.)
PRESENT ORGANIZATIONS OF THE UNITED NATIONS
The General Assembly
President
Paul-Henri Spaak of Belgium.
Vice Presidents
The heads of the Delegations of the United
States, the United Kingdom, the Union of Soviet
Sociali-st Republics, France, China, South Africa,
and Venezuela.
Members
Argentina
Australia
Belgium
Bolivia
Brazil
liyelorussia
Canada
Chile
China
Colombia
Costa Rica
Cuba
Czechoslovakia
Denmark
Dominican Republic
Ecuador
Egypt
El Salvador
Ethiopia
France
Greece
Guatemala
Haiti
Honduras
India
Iran
Iraq
Lebanon
Liberia
Luxembourg
Mexico
Netherlands
New Zealand
Nicaragua
Norway
Panama
Paraguay
Peru
Philippines
Poland
Saudi Arabia
Syria
Tin-key
Ukraine
Union of South Africa
LTnion of Soviet Socialist
Republics
United Kingdom
United States
LTruguay
Venezuela
Yugoslavia
The Main Committees *
The General Committee: Provisionally com-
posed of 14 members as follows : the Presi-
dent of the General Assembly, the 7 Vice Pres-
679885—46 3
idents, and tlie chairmen of the 6 committees
listed hereafter.
Political and Securi'j'y: Dr. D. Z. Manuilsky,
Ukraine
Economic and Financial: Waclaw Koncerski,
Poland
Social, Humanitarian, and Cultural: Peter
Eraser, New Zealand
Trustees! I ir: Dr. Roberto MacEachen, Uruguay
Administrative and Budgetary : Faris al-Khouri,
Syria
Legal : Dr. Roberto Jimenez, Panama
The Security Council
China (permanent) United States (perma-
France (permanent) nent)
Union of Soviet Social- Australia
ist Republics (per- Brazil
manent) Egypt
United Kingdom (per- Mexico
manent) Netherlands
Poland
Military Staff Committee
The Chiefs of Staff (or their representatives) of
the United States, the United Kingdom, the Union
of Soviet Socialist Republics, France, and China.
The Economic and Social Council
Belgium
Canada
Chile
China
Colombia
Cuba
Czechoslovakia
France
Greece
India
Lebanon
Norway
Peru
Ukraine
Union of Soviet Social-
ist Republics
United Kingdom
United States
Yugoslavia
' All these committees except the General Committee
are composed of representatives of all 51 members of UNO.
66
DEPARTMENT OF STATE BULLETIN
The First Inter -American Demographic Congress
By SARAH E. ROBERTS
THE RECENT WAR gave eai'ly evidence
that the problem of displaced per-
sons would be a serious one in the
post-war era. As a step toward the
formulation of logical, coordinated plans for the
reception of immigrants in the Western Hemi-
sphere, therefore, tlie President of Mexico promul-
gated a decree on July ;'>, 1943 in which he author-
ized the Ministry of Government to organize the
First Inter-American Demograjjhic Congress.
The decree stated:
"The fnnctions of the Congress shall consist in
the exposition and cooidination of the points of
view of the American nations ct)ncerning the prob-
lems whicli will arise from postwar migratoi-j*
movements, and the determination of the demo-
graphic policy which should be reconnnended for
that i^eriod of emergency."
Migratory problems had of course been the ob-
ject of attention in numerotis international and in-
ter-American conferences held between the first
and the second world wars, but it was believed that
the various studies begun, outlined, proposed, or
recommended at these meetings should be corre-
lated, and those found feasible should bfe definitely
adopted by the American governments and put
into operation.
The invitation of the Mexican Government to
attend a special congress on migration, to be held
in Mexico City in October 104:!, was accepted by
all the American nations, including Canada.
Seventy-one official delegates were present. In
addition, one non-voting delegate apiece was sent
by the Pan American Union, the Pan American
Institute of Geography and History, tlie Inter-
American Indian Institute, the Inter-American
Statistical Institute, the Pan American Sanitary
' Mis.s Roberts is Efonniiiist in tlie Divisicm of Iiitcr-
natioual Lalior, S<><'ial and Hi'ultli Aflairs, Offiie of Inter-
national Trade Policy, Department of State.
Bureau, the International Labor Office, and the
Economic, Financial and Transit Department of
the League of Nations.
The Delegation for the United States consisted
of Dr. Lowell J. Reed, dean of the school of hy-
giene and public health at Johns Hopkins Univer-
sity, chairnuni; Mr. Earl G. Harrison, Commis-
sioner of the Immigration and Naturalization
Service, Department of Justice, delegate; Mr.
Raleigh A. Gibson, First Secretary of the Amer-
ican Embassy in Mexico, adviser; and Mr. Edward
S. Maney, Second Secretary at the Embassy, sec-
retary.
On October 11, 1043, those delegates who had
arrived in Mexico City met in a preparatory ses-
sion to study and approve the proposed program
for the Congress. In addition, it was agreed to
designate Migiiel Aleman, the Minister of Gov-
ernment and head of the Mexican Delegation, as
President of the Congress and the heads of the
other delegations as Vice Presidents. The formal
inaugural session was held on October 12. Senor
Aleman outlined the reasons for holding the con-
ference, stating that its chief purpose was to find
an answer "to the post-war cry of devastated
peoples of Europe seeking a haven in the New
World". He welcomed the delegates and took
over tlie position of President.
At an extraordinary plenary session held on Oc-
tober 1."!, tlie following committees were appointed
to carry on the work of the Congress: Committee
on Credentials, Committee on Organization and
Rules, Connnittee on Resolutions, Committee on
Demography, Committee on Ethnology and Eu-
genics, and Committee on Demographic Policy.
Dr. Keed was a member of the Connnittee on
Organization and Rules and Mr. Harrison, the
chairmiin of the Committee on Demography.
From October 14 to '20, the delegates devoted all
their time to meetings of these connnittees. On
October '1\ a plenary session for the approval of
JAlWAIiY 20, 1946
67
^•2 lesuhitions - and the closing session were held.
These 32 resolutions were approved unanimously
by all the delegations, with certain reservations
by the Delegate from Canada.
I liter -American Demographic Committee
Two OF the resolutions were concerned with means
for implementing the recommendations of the Con-
gress. One provided for the creation of an Inter-
American Demographici Committee. It was to
liave as one of its principal duties the preparation
of a i^roject for the creation of an Inter-American
Demographic Institute. The Committee was be-
lieved to be particularly necessary in order to
coordinate the demographic activities of the nu-
merous inter- American and international organi-
zations wjiich included among their functions the
study of certain aspects of demography but no one
of which concerned itself solely or even especially
witli the problem of migration. Justification was
also seen for the Committee in the recommenda-
tions made by the Inter- American Conference
for the Maintenance of Peace at Buenos Aires
and the Eighth International Conference of Amer-
ican States at Lima for the establishment "as soon
as possilile" of a committee of experts on questions
of migration.
It was proposed that the Committee have head-
quarters in Mexico City and be composed originally
of seven experts appointed bj' the governments of
countries chosen by secret ballot by the Committee
on Resolutions of the Demographic Congress. The
countries so selected were Argentina. Brazil. Co-
lombia, the Dominican Republic, ]\Iexico. Peru, and
the United States. Once these seven experts were
chosen and the Committee was organized, experts
might be appointed by the remaining Ajiierican
nations to form a part of the Committee with
powers equal to those of the original members.
Although the appointment of the first seven
members of the Committee was originally to be
completed by February 1, 1944, the seven cited
countries were not requested to appoint an expert
before some months later. On November 24, 1945,
President Trinnan api^roved the appointment of
Lt. Commander Forrest E. Linder, U.S.N.R., of
the Bureau of Medicine and Surgery of the Navy
Department as the United States representative
on this Committee.
To assist the Committee in its work, a second
resolution recommended that each government, if
it had not already done so, create a special agency
to .stud}^ population and migration problems and
to maintain contact with comparable international
organizations.
General Statistical Data
The remaining 30 resolutions covered a much
broader range of topics than was suggested by the
presidential decree announcing the Congress. It
was agreed that the formulation of a demographic
policy for the post-war period must include con-
sideration of the general economic, cultural, health,
and race problems of the Americas as distinct from
the purely statistical studies which the term de-
moffraphy would indicate. As the basis for an
understanding of the more general aspects of these
problems, however, it was believed that the opinion
of each country should be solicited as to its own
economic capacity to receive and utilize immi-
grants. In conjunction with these opinions, ade-
quate statistical data were considered essential.
Numerous resolutions looking toward the compila-
tion of these data were therefore adopted.
It was recommended that a census be taken of the
entire American Continent during the years 1950
and 1951 which should include statistics not only
of a strictly demographic nature but also of the
social economy of the respective countries. The
latter data should be founded on a basic program
elaborated by the Inter-American Statistical In-
stitute and approved by each government. It was
suggested that countries with an Indian economy
and culture, in compiling their respective censuses,
follow the procedure adopted by Mexico in its
pojjulation census of 1940.
In order to make unifoi'm in each country the
data secured in this census and in other statistical
inquiries, it was recommended that systems and
methods of investigation concerning demographic
movements be unified with the help of the Inter-
American Statistical Institute. Specifically it was
uiged that a uniform nomenclattu'e for the desig-
nation of diseases, the causes of death, and the
causes of stillbirth be adopted and that it be based
on the intei'uational terms approved by the Inter-
national Commission for the Revision of the Inter-
national List of Causes of Death. A separate
recommendation was made that, in view of the ab-
solute necessitj' of a uniform definition for the term
stiUbirth, the legal definition proposed by the
Health Section of the League of Nations on April
-A umiibered sumuiary of these resolutions is given at
the end of this article.
68
DEPARTMENT OF STATE BULLETIN
1, 1925 be adopted. In countries without a vital-
statistics bureau, it was urged that one be estab-
lished in order better to carry out the above
recommendations.
Social Standards
Although statistical data were considered essen-
tial to the formulation of an adequate demographic
policy, it was realized that the matter did not end
there. Rather it was necessary to devise a policy
which should provide for the adequate develop-
ment of the actual population of the Americas and
should protect both the native populations and
the immigrants, affording to each an equality of
civil and social rights within the possibilities per-
mitted by the institutional organization of each
country, without regard to race, color, or creed.
Racial Problems
Consideration of the protection of the present
American jjopulation focused particular attention
on two groups, namely, the Indian and the Negro.
It was recommended, as the basis for the protection
of the Indian, that all the Amei-ican governments,
even if they had not been present at the Indian
Congress held in Piitzcuaro in 1940, adhere to the
principles approved by it or ratify the convention
which created the Inter-American Indian Insti-
tute. In addition, it was suggested that American
countries with a "quantitatively important" In-
dian population should pay special attention to the
elevation of the economic and cultural levels of
this population. In doing so, however, it was felt
that the cultural characteristics pecidiar to the
Indian race should not be lost, and it was therefore
recommended to the Inter-American Indian Insti-
tute that it sponsor the publication of an Encyclo-
pedia of the American Indian, and to the govern-
ments and cultural institutes of the Americas that
they "promote the realization, by specialists, of an
integral plan of investigation concerning Indian
art, under the auspices of the Inter-American In-
dian Institute".
A special resolution on the Afro-American
population recommended that tlie governments
take all necessary steps to improve the educational
facilities available to this race with a view toward
the improvement of its living conditions and the
elimination of all discrimination on grounds of
race or color. This resolution also proposed the
preparation and publication of a "scientific study
of Xegro populations, of their conditions, poten-
tialities, cultures in general and of their contribu-
tion to the national and continental heritage" in
order to create a better understanding between
social groups. Before the Demographic Congress
was terminated, a group of investigators met in
jSIexico City to establish the International Insti-
tute of Afro-American Studies.
In an effort to eliminate ideas of race superior-
ity, it was recommended that the American gov-
ernments "absolutely reject all policy and all
action of racial discrimination" as being contrary
both to the conclusions of science and to the prin-
cij^les of social justice. To this end, the word
}'aee should never be used in a derogatory sense.
The word imdesirahle as applied to a given nation-
ality should also be expurgated from any laws in
which it had been used.
Public Health
VAEiotTs proposals were made to protect or im-
prove the health both of the existing population
of the Americas and of the immigrants. In order
to avoid the transmittal of disease from abroad,
it was recommended that the Fifth Pan American
Conference of National Directors of Health, to be
held in Washington in 1944, consider the advis-
ability of requiring an international or inter-
American health certificate as a prerequisite to
immigration.
It was proposed not only that the medical ex-
aminations necessary for the issuance of these
health certificates be made before the immigrant
leaves his country of origin but also that they be
repeated on his arrival in the country of destina-
tion. In addition, it was resolved that Centers of
Hygiene and Social Assistance for the Family, if
they do not already exist, be established in this
country for the use of these immigrants or that
periodic health examinations be given to them.
These measures were labeled as transitory, to
apply only until an inter- American sanitary con-
vention be formulated and adopted.
To protect as well as to improve the public
health, it was recommended that campaigns for
health improvement be carried on, that marriage
be regulated eugenically, and that an adequate plan
of eugenic education be developed. A long resolu-
tion discussed plans for tlie study of eugenic and
medico-social problems for the purpose of adopt-
ing a common program of action. The Pan Amer-
JANVARY 20, 1946
69
ican Sanitary Bureau was charged, in this connec-
tion, witli the constitution of a Pan American Of-
fice of Eugenics and Horaiculture. Particuhxr at-
tention was to be paid to activities against syphilis
anil alcoliolisni and to the protection of tlie mother
and child.
As pait of the program for improved public
health, it was recommended that full employment
be planned in order to permit an adequate stand-
ard of living for both the worker and his depend-
ents. To determine the existing standard, it was
recommended that each government make a study
of the family liudget of the laboring classes, using
as a basis for this work the technique employed by
the International Labor Office in its investigations
of this character. For the further protection of
the worker, it was urged that all applicable con-
ventions of the International Labor Office be
promptly ratified and that systems of social insur-
ance be established, amj)lified, or perfected, ac-
cording to the case.
The importance of adequate nutrition to health
was duly noted. In this connection, it was recog-
nized that maximum i^roduction and reasonable
prices were both essential since "it is useless to pro-
duce food if individuals and nations are not given
means to acquire it". It was therefore recom-
mended that the American governments study and
apply, so far as their respective abilities permit,
the recommendations and resolutions of the Inter-
national Food Conference held in Buenos Aires in
1939 under the auspices of the League of Nations,
the Second Inter-American Agricultural Confer-
ence in Mexico in 1942, and the United Nations
Conference on Food and Agriculture held at Hot
Springs, ^'a., in 1943.
Assistance to Immigrants
It was recognized "that the American countries
in defining their migration policy will have to ad-
just themselves to the changes produced in their
economy by the effect of war and by the develop-
ment of their activities, trying to diversify the
contributions of the immigrants in accordance
with the programs and opportunities for their in-
dustrialization and colonizaton". In order to
widen these opportunities, it was recommended
"that the Govei-nments of the American countries
whose industrial structure is little developed out-
line and carry out a program of industrial de-
velopment as a means of raising the standard of
living of its laboring classes and creating the con-
ditions in(lisi)ensable for the absorption of immi-
grants". In Older to avoid repetition of work in
this field, the Permanent Council of American
Associations of Commerce and Production was re-
quested to make available its studies, then in prog-
ress, on such matters as consumption, industrializa-
tion, and economic changes effected in the Amer-
icas by the war. The Council and similar organiza-
tions were also asked to include the demographic
aspects of problems in their studies and to consider
the effects of post-war economic demobilization on
labor.
The expansion of the work of the Permanent
Committee on Migration for Settlement was rec-
omjnended to the governing body of the Interna-
tional Labor Oi'ganization with the s^iecific sugges-
tion that this Committee extend "its scope to the
migration of laborers specialized in industrial
trades". A special interest was expressed in the
studies begun by the International Labor Office
concerning the possibility of creating a special in-
ternational organization to concern itself with the
regulation of internatiimal migration "in hai'mony
with a more liberal interchange of capitals and
products".
To facilitate the adaptation of the immigrant
to his new home, special recommendations were
made for his required education in the culture and
customs of his adopted country. To avoid the
financial difficulties which were called one of the
greatest obstacles to inunigration since World War
I, measures were suggested for assisting the immi-
grant farmer both in the transportation costs to
his new home and in his settlement on new land.
It was recommended that the American govern-
ments establish institutions for this purpose and
that the International Labor Office follow up the
proposals on the subject of the organization of
financial assistance made by the Habana confer-
(•nce of 1939.
The suggestions and recommendations made for
tlie protection of immigrants by the International
Labor Office were specifically recognized. It was
resolved that certain international conventions
relative to immigrants and their equality of treat-
ment ap2:)roved by the International Labor Con-
ferences held in Geneva in 192.5, 1926, 1935, and
1939 be ratified and incorporated in the laws of the
respective American nations.
It was suggested that measures be taken to col-
70
DEPARTMENT OF STATE BVLLETIN
lect data on naturalized immigrants according to
the lengtli of tlieir residence in tlieir new home,
tlieir phxce of birtli, and, if different, their original
citizenship.
Miscellaneous Recommendations
In anticipation of post-war tourist travel, it
was recommended that the statistics, requisites, and
documents pertaining to such travel be made uni-
form throughout the hemisphere '"as a means of
orienting and stimulating tourist travel".
Tt) carry out the objectives outlined in its vari-
ous recommendations, the Congress realized that
it would be necessary to jiromote a better under-
standing between the peoples of the Americas.
The conventions subscribed to at liuenos Aires in
W?>C} for the promotion of Inter-American cultural
relations of all types were therefore endorsed. To
facilitate particularly the fulfilment of the reso-
lutions on demography, it was recommended that
demographic courses be established in all American
universities where they did not exist.
Implementation
As NOTKL) earlier, requests have been sent to the
seven chosen countries for the appointment of an
expert to the proposed Inter- American Demo-
graphic Committee, and the member for the United
States has been named. Questionnaires relating to
requiiements for post-war innnigration and to the
statistical aspects of continental demography have
also l)een circulated among the American govern-
ments, in fulfilment of resolution one.
A careful study of the resolutions adopted by the
Demographic Congress reveals the fact that vari-
ous ones of the reconnnendations have been en-
dorsed, reiterated, or acted upon in subsequent
congresses such as the Fifth Pan American Con-
ference of National Directors of Health held in
Washington, the United Nations Conference on
International Organization, which met in San
Francisco, the conference of the Confederation of
Latin Amei'ican Workers in Cali, Colombia, and
the Inter- American Conference on Problems of
War and Peace lield in Mexico City. No one of
these conferences, however, was concerned princi-
pally with demographic problems, nor did they
provide for the creation of an organization for
that imrpose alone such as was planned by the First
Inter-American Demographic Congress. Since the
implementation of the resolutions of this Congress
is assigned for the most part to the conunittee of
experts now being appointed, further developments
in the inter- American demographic field must de-
pend largely on the work of this conmiittee.
Summary of Resolutions^
1. Resolution recommending that the Inter-
American Demographic Conmiittee secure a report
on the economic capacity of each American country
to place antl utilize immigrants in order to have a
technical base for the coordination of migratory
movements in America.
2. Resolution recommending that a census be
taken of the American Continent during 1950 or
19.51 and that this census contain economic-social
data in addition to strictly demographic informa-
tion.
3. Resolution recommending that, in the census
to be taken in 1950, governments of countries with
an Indian economy and culture follow the methods
employed by Mexico in taking its census of popu-
lation in 1940.
4. Resolution recommending standardization of
statistics, requisites, and documents pertaining to
tourist travel.
5. Resolution recommending the adoption of a
iniiform definition of the term .stillbirth.
6. Resolution recommending the gathering of
data covering the length of residence, the place of
birth, and, if different, the original citizenship of
naturalized citizens.
7. Resolution reconnnending the standardiza-
tion of systems and methods of demographic
investigations.
S. Resolution recommending the adoption of
measures to facilitate the international comparison
of demographic statistics.
9. Resolution reconnnending the adoption of an
inter-American or international health certificate
as a prerequisite to innnigration.
10. Resolution reconnnending that the govern-
ments represented at the Congress adhere to the
|)rinciples ai^proved by the Inter-American Indian
Congress at Patzcuaro or ratify the convention
which created tiie Inter-American Indian Insti-
tute.
11. Resolution recommending the raising of the
" F(ir fill! text see Acta Finnl del I'riwcr Conyrcxo Demo-
f/niflro Inhramcricano Cclcbrado en, Mt'xicn, D.F. del 12
(il 21 de Ocliihrc dc ID.'/S (Mexico, "La Impresorn", 1944),
43 pp.
JANUARY 20, 1946
71
cultural and economic level of the Indian popu-
lation.
12. Resolution recommending that the American
governments reject all policy and action of racial
discrimination.
13. Resolution entitled "Demographic Policy
Based on Eugenics", which recommends that the
American countries sponsor a demographic policy
looking toward tlie economic and biological bet-
terment of their peoples.
1-i. Resolution recommending measures to facili-
tate the cultural assimilation of immigrants.
15. Resolution recommending that the word un-
desiraile not be applied to the nationals of any
country.
16. Resolution recommending the scientific
study of Negro populations and improvement in
the education of Negroes as a means toward the
abolition of all discrimination against them.
17. Resolution entitled "Health Conditions of
Immigrants", which includes among its recom-
mendations the suggestion that thorough and uni-
fonn medical examinations be given to immi-
grants coming to the Americas.
18. Resolution entitled "Eugenics and Social
Medicine", which reconnnends that, apart from
their periodic censuses, the American countries col-
lect essential data with the end of determining
general and regional eugenic and medico-social
jjroblems.
19. Resolution entitled "Opinion on the Policy
of Inunigration", which contains detailed recom-
mendations for a systematic and thorough ap-
proach in the formulation of immigration policies.
20. Resolution recommending the establishment
of an Inter-American Demographic Connnittee
with a principal duty of studying demographic
problems in the Americas, especially the capacity
of each American nation to receive immigrants.
The eventual establislnnent of a permanent Inter-
American Demographic Institute is also envisaged
in this resolution.
21. Resolution entitled "Specialized Services for
the Study of the Population", which recommends
the creation of specialized institutions, where they
do not exist, to study the problems of existing
populations and of migrations, and the coordina-
tion of such studies with the work of the Inter-
American Demographic Committee.
22. Resolution entitled "Agriculture and Nu-
trition", recommending that the various American
governments study and apply to their demographic
policies the pertinent resolutions and recommenda-
tions passed by three cited international confer-
ences.
23. Resolution entitled "Development of Cul-
tural, Economic and Social Relations", which has
as its principal theme the desirability of cultural
exchanges between the American nations.
24. Resolution entitled "Opinion on Demo-
graphic Problems'", which reconnnends principally
the ratification of the conventions of the Inter-
national Labor Office, a careful study of the stand-
ard of living of the American population and of
ways to improve it, and the establishment, develop-
ment, or perfectioning of a social-insurance sys-
tem.
25. Resolution recommending the industrializa-
tion of countries whose industrial structures are
underdeveloped.
26. Resolution recommending the establishment
of institutions which will lend financial assistance
and advice to immigrant farmers. This resolution
also recommends .studies concerning methods of
financing colonization and the technical selection
of colonists.
27. Resolution recommending that the Perma-
nent Council of American Associations of Com-
merce and Production be asked to make available
to the Inter-American Demographic Committee
the conclusions reached in studies which the Coun-
cil was then carrying out on such matters as con-
sumption, industrialization, and economic changes -
effected by the war.
28. Resolution recommending national studies
of the family budgets of tlie laboring classes.
29. Resolution recommending the study of
demography in the universities of America.
30. Resolution recommending the compilation
of an Encyclopedia of the American Indian and a
study of Indian art.
31. Vote of thanks to the Mexican Government
for its initiative in convoking the Congress, to the
Mexican officials concerned for their efficient han-
dling of the Congress, and to the representatives of
the inter-American and international associations
for their assistance.
Unnumbered. Declaration of the Delegation of
the Dominican Republic repeating the offer made
at the Conference of Evian in 1938 to receive up
to 100,000 European immigrants.
72
DEPARTMENT OF STATE BVLLETIN
Detail of U. S. Personnel to Other Governments
By HENRY H. McGEORGE
c
loNORKSSioxAL approval of an
act on May 25, 1938, and
amendment by an act ap-
proved INIay 3. 1039,= antlior-
ized the temporary detail of tliose United States
employees who possess specialized and technical
qualifications to serve undei' the fi:overnments of
the other American republics, the Philippines, and
Liberia. Such legislation has been one means of
implementin<T this Government's policy of coop-
eration with those countries.
Since the original legislation was approved, 93
enifdoyees of the various dej)artments and agen-
cies of tlie Fetleral Government have given assist-
ance to ir> of the American republics and to the
Philii)])ines and Liberia. In one instance, special
legislation extended the provisions of the act to
enable an employee of the Bureau of Reclama-
tion. Department of the Interior, to assist and
advise tlie (lOvernment of Australia in connec-
tion with the construction of Avater-storage dams.
Twenty-two assignments of agricultural spe-
cialists have been effected, and a number of others
liave been concerned with the production and proc-
essing of agricultural crops. Most of the agri-
cultural personnel has
example, natural rubber, insecticides, cinchona,
and other tropical crops. During the war in
particular, assistance has been given in developing
local food supplies and markets.
Twelve experts in the catching and i^rocessing
of fish and fish products for local consumption have
offered specialized service to several of the Ameri-
can republics. Sucli assistance has done much to
relit've the dependence of these countries on Axis
nationals.
Other types of experts detailed under the act
have been those specializing in such subjects as
taxation, statistics, finance, geology, public health,
child welfare, inunigration. police and jjrison tech-
niques, library science, and public instruction.
At present Ifi experts are serving under the pro-
visions of Public Law 63. Five of these people are
assisting in connection with the agricultural pro-
grams of Brazil, Colombia, Liberia, and Venezuela.
A librarian is aiding in the organization of the
library of the Instituto Agronomico do Norte at
Belem, Brazil, and the services of a child-welfare
expert of the Children's Bureau. Department of
Labor, have also been made available to the Brazil-
ian Government. The other specialists now on as-
sionnient include two
assisted with the cul-
tivation and market-
ing of products com-
plementary to our
own agricultural en-
terprise, such as, for
' Mr. ]\I((;e(irge is a Di-
visional .\ssistaiit (in the
Secretariat of tlie Inter-
departmental Committee
on Scientific and Cul-
tural Cooperation, Ofliee
of International Infor-
mation and Cultural Af-
fairs, Department of
State.
= Public Law 6.3, 76th
Cong.
The [nlerdepartiiienttil Committee on Scientific and Ctil-
tiiral Cooperation teas created, at the suggestion of the Presi-
dent, eiirly in 19.il! as an instrument of the United Slates Gov-
ernment to undertake a permanent, cooperative program jot
the development of economic, cultural, and scientific rela-
tions and to coordinate the activities of departments and
agencies of the Government, under the leadership of the
Department of State, in undertaking cooperative projects in
these fields in the ft eslern Hemisphere. L ntil December
20, 1944, the Committee was knoivn as the Interdepartmental
Committee on Cooperation W ith the .American Republics.
The activities of the Committee are coordinated by the chair-
man of the Committee, the Assistant Secretary of State in
charge of public and cultural relations, W illiam Benton. The
vice chairman of the Committee is the Director of the Office
of International Information and Cultural Affairs, ff illiam T.
Stone, and the E.xecutive Director is Rayniund L. Zivemer.
The Executive Director and members of the Secretariat are
officers of the Department of State in the Office of Inter-
national Information and Cultural Affairs.
statisticians, one in
Colombia and one in
Panama, a chemical
expert in Peru, a pub-
lic-health engineer in
the Philippines, an
expert on civil avia-
tion and a hydro logisi
in Ve n e z u e 1 a, and
t h r e e geologists in
Chile.
In order to obtain
the services of a spe-
cialist from the
United States Gov-
ermnent, the interest-
ed government makes
JANUARY 20, 1946
73
a request through iliploiuiitic chaunels to the Sec-
retary of State, who refers the request to the
department or agency most likely to have avail-
able an expert of the type desired. After the
exjiert is selected, arrangements are made for his
detail to the other government.
The act provides that an employee possessing
the necessary qualifications may be assigned for
temporary service for a period of not exceeding one
year and that his detail may be extended in ex-
traordinary circumstances for periods of not to
exceed six months each. The average detail has
lasted for a period of seven and one-half months.
The actual range of the periods of the assignments
undertaken, however, has been from a minimum
of nine days to a maximum of two years and seven
days.
During the period of the assignment the spe-
cialist retains his status as an employee of the
department or agency from wiiich detailed and
continues to receive his salary and expenses from
it. Costs of a detail include salary, travel ex-
penses, a monthly allowance for quarters and sub-
sistence comparable to those of the Foreign Serv-
ice of the United States, and in some instances ad-
ditional compensation to cover expenditures which
would otherwise result in a financial loss to the
employee. For the purposes of the assignment,
the department or agency from which the em-
ployee is detailed may pay these costs from any
appropriations available to it for the payment of
compensation and travel expenses.
One of the features of the act is that it permits
the acceptance by the Government of the United
States of all or part of the expenses from the other
government concerned. Funds for the purpose
may be accepted in advance from the other gov-
ernment, in which event the amounts so received
are placed in a trust fund that is available for the
pa_vment of the expenses incident to the detail as
they are incurred. Any balance remaining in the
trust fund is returned to the other government at
the completion of the detail. As an alternative
to this arrangement, the other government may
reimburse this Government for the expenses ac-
tually paid in connection with the employee, and
in that event the amounts reimbursed are credit-
able to appropriations current at the time the ex-
penses were paid or to appropriations current at
the time the reimbursement is effected. The reim-
bursed amounts may also be credited in part to
either of the aforementioned appropriations.
The average detail costs $4,851 including only
those expenses paid to or on behalf of the em-
ployee. Of this amount the average obligation
of the other government is $1,981, or about -41
percent of the total. In 78 details for which com-
plete records are available, the total costs have
been $378,377, of which the obligations of the other
governments concerned total $l.^>4,5fi'2. Amounts
paid directly bj^ the other govermnents for the
furtherance of their various programs in which
United States employees have assisted under the
provisions of the act quite possibly run into mil-
lions of dollars.
Because of the coopei'ative nature of the assign-
ments and the mutual benefits to the Govermnent
of this country and that of the other countries in-
volved, the administration of the act has been
closely integrated with the program of the Inter-
departmental Conunittee on Scientific and Cul-
tural Cooperation, the Secretariat of which is
located in the Office of International Information
and Cultural Affairs of the Department of State.
Ban on Exit Permits
for Austria Lifted'
The Department of State announces tliat the
ban on the granting of exit permits for Austrian
refugees who wish to return to their country has
been lifted. Austrian refugees who fied to the
United States to escape Nazi tyramiy after the
forcible annexation of Austria b}' Germany in
1938 may now receive the necessary authorization
to return by application to the State Department.
The United States did not recognize the German
annexation of Austria in 1938 and provided a
haven for many Austrians who escaped religious
and political persecution by the Nazis. Tliey have
made many contributions to American democracy
and to the war against Fascism. Those who re-
turn will be able to contribute to the reconstruc-
tion of Austria and to assist in the completion of
Allied objectives as stated in the Moscow Det'lara-
tion as well as to bring to the Austrian people the
assurance that the United States is fulfilling its
pledge to create an independent and democratic
Austria.
' Released to the i)re.ss Jan. 9.
International Organizations and Conferences
Calendar of Meetings
Far Eastern Commission
Anglo-Aiiierlcau Conmiittee of Incniiry
Inter-American Statistical Institute: Executive
Committee
United Nations Organization : General Assembly
Caribbean Forestry Commission
Civil Aviation Conference
International Connnission of tlie Kliine River
International Labor Organization :
Conference of Delegates on Constitutional Ques-
tions
International Development Works Committee
International Technical Committee of Aerial Legal
Experts (CITEJA) : 14th Session
International Cotton Study Group: Subcommittee of
the International Advisory Committee
West Indian Conference
Tokyo
Washington
Rio de Janeiro
London
January 6 (continuing in
session )
Hearings opened Janu-
ary 7
January 7-14
January 10 (continuing In
session )
Port-of-Spain
January 14-24
Bermuda
January 15 (c
session)
Brussels
January 17-18
London
January 21
Montreal
January 28
Paris
January 22
Washington
January 24
St. Thomas, Virgin Islands
February 21
(U. S.)
Activities and Developments
Anglo-American Commiltee of Inquiry plans to
complete its hearings in Washington on Janu-
ary 14 and to sail for England on the Qwen
Elhuheth on January 18. The Committee will
hold hearings in London between January '25 and
31 and proceed immediately tliereafter to conti-
nental Europe. It expects to leave Europe at the
end of February and go to Cairo for a short stay on
its way to Palestine.
Many members of the Committee have expressed
approval of the helpful attitude of the organiza-
tions appearing before them in Washington.
Among the material submittetl in written form,
economic studies of Palestine, statistics on Jews in
Europe, and carefully prepared collections of
political ilocuments have been specifically men-
tioned as of great value to the Committee. The
succinct form of the oral presentations at the hear-
ings has been particularly gratifying to the Com-
mittee members because of the need for haste in
getting on to the problems in continental Europe.
U. S. Representative on Economic and Social
Council of UNO. On January 12 the President
designated Ambassador John G. Winant to act as
representative of the United States on the Eco-
nomic and Social Council of the United Nations
Organization for the organizing meetings of the
Council to be held during or innnediately after the
current meetings of the United Nations Assembly.
In notifying Ambassador Winant, the President
wrote hini that :
"The i)rompt development and execution of
plans for the effective organization of the Eco-
74
JANUARY 20, 1946
75
iioniic and Social Couruil is vital to the successful
accomplishment of many important tasks with
wliich it will have to deal. I amc<infi(lent that your
contribution to the work of organizing tlie Council
will be fully in accordance with your past achieve-
ments and I wish you all possible success in this
new undertaking."
Civil Aviation Conference.' The composition of
the American Delegation to the Civil Aviation
Conference which will take place in Bermuda be-
ginning on January 15 ha.s been completed. The
Delegation will be headed by Col. George P.
Baker, Director of the Office of Transport and
Connuunications Policy, Department of State.
Inclusive of the three members from the De-
partment of State and the five members from the
Civil Aeronautics Board whose names were made
public on January 8, and with the inclusion of
additional members, the complete list follows :
Delecjates :
Depaiiment of State: Colonel Baker ; Mr. Stoke-
ley W. Morgan, Chief, Aviation Division; Mr.
Garrison Norton, Deputy Director, Office of Trans-
])ort and Communications Policy; and Mr. John
D. Hickerson, Deputy Director, Office of European
Affairs.
Civil Aeronauficf Board: Mr. L. "Welch Pogue,
Chairman of the Civil Aeronautics Board; Mr.
Harllee Branch, ilr. Oswald Ryan, and Mr. Josh
Lee, members of the Civil Aeronautics Board;
Mr. George C. Neal, General Counsel of the Civil
Aeronautics Board ; and Mr. John Sherman, Liai-
son Consultant. It is probable that not all of the
delegates representing the Board will be at Ber-
muda at the same time.
Advisers :
War Department: ^laj. Gen. Lawrence S. Kuter,
U.S.A., and Lt. Col. William P. Berkeley, A.U.S.
Navy Department : Mr. Artemus L. Gates,
formerly Assistant Secretary of the Navy, and
Vice Admiral Forrest P. Sherman, U.S.N.
Delegation Staff :
/';r.s-,y Officer: Mv. Reginald P. ^Mitchell, Assist-
ant to the Special Assistant to the Secretary of
State, Mr. M. J. McDermott.
Secretariat: Mr. William L. Breese, secretary,
and Miss Frances E. Pringle, assistant secretary,
' Released to the press .Ian. 11.
both of the Division of International Conferences^
Department of State.
The Department of State has been informed
that representatives also will be present from the
Pan American Airways System, Transcontinental
& Western Air, Inc., and the American Overseas
Aviation Companj'.
Various members of the American delegation,
together with representatives of the press, are
scheduled to depart by plane for Bermuda from
La (iuardia Field, New York, N. Y., at about
1 ]).ni., Monday, January 14.
The British Delegation will include Sir William
Hildred and Mr. L. J. Dunnett of the Ministry of
Civil Aviation: Mr. N. J. A. Cheetham of the
Foreign Office; Maj. J. R. McCrindle of the British
Overseas Airways Corjjoration from London; and
Sir Henry Self and Mr. Peter Masefield from
AVashington.
[Released to the press .Taiumry 0]
During the fall, when the over-all economic dis-
cussions with the British were being carried on in
Washington, there were two specialized collateral
problems with the British which the State Depart-
ment believed should be handled coincidentally
with the Washington negt)tiations but quite sepa-
rately therefrom. These were the problems of
civil aviation and of telecommunications. On
November 21, in Bermuda, we sat down with the
British to discuss our telecommunications prob-
lems. On the important issues involved we ap-
peared to be far apart. In approximately 10 clays,
because of an honest desire on each side to under-
stand the fears and problems of the other, and
because of a firm and overriding conviction on
both sides that, in the light of over-all world
events, the countries of the world must be able to
work together in harmony and cooperation, an
agreement was signed which was satisfactory to
the United States and British Governments and to
the American companies involved. On January
15 we again sit down with the British in Bermuda.
This time it is on civil-aviation problems. Again
on a few impoi'tant issues we appear to be far
apart. We confidently believe, however, that the
same over-all approach between the two countries
will bring as successful an agreement in civil avia-
tion as was accomplished in telecommunications
five weeks ago.
The Record of the Week
Denial of Russell Nixon's
Conclusions on "Protection"
of German Assets
[Releaseil to the press January 8]
The State Department denies emphatically both
the alleged facts and the conclusions stated by Eus-
sell Nixon, acting United States member of the
German External Property Coannission, with re-
spect to State Department "jjrotection" of German
external assets.
The misleading and imsupportable statement
issued by Mr. Nixon, apparently prior to his resig-
nation from an official post, threatens both the rela-
tions of the United States with its Allies and the
effort to obtain control and power of disposition of
German external assets. The Department there-
fore believes it necessary to contravert directly ^Ir.
Nixon's assertions.
The statement issued by Mr. Nixon is full of mis-
chievous inaccuracies and misleading innuendoes.
The cliarge tliat a "western bloc" is created by the
State Department program is not correct and can
be based only on wilful misunderstanding. The
territorial division of labor to whicli Mr. Nixon
refers was specifically provided for in the Potsdam
agreement, article IV, sections 8 and 9, whereby
German external assets in certain specified coun-
tries are disposed of to the Union of Soviet Social-
ist Republics and, in all countries except those
specified, to the other Allies. Obviously the
'"labor" of laying hands on those assets falls to the
U.S.S.R. in tlie countries specified and to the other
Allies in the other countries. The i)ractice of the
Department has been and is to keep the U.S.S.R.
fully informed on all steps taken. In addition, the
Department's jiolicy is to obtain Soviet support of
measures taken in those countries outside the areas
in which the Potsdam agreement assigned German
external assets to the U.S.S.R. witii wliicli the
Soviet Government maintains diplomatic rela-
tions, and tlie Department is willing to support
Soviet action in areas in which the Potsdam agree-
ment assigned German cxtermil assets to the
U.S.S.R.
76
The allegation that the Department is ''ham-
stringing" the program to control German external
assets is disproved on the record. The Department
points out that it has. over a period of years, main-
tained a unit whose specific duty was the elimina-
tion of German economic influence abroad and has
maintained trained personnel in the various mis-
sions abroad assigned to this specific purpose. The
DeiDartment has sponsored and cooperated with
other governmental agencies in the promulgation
of such jjublic declarations as the Declaration
Against Axis Acts of Dispossession of January 5,
194.'3, the looted-gold declaration of February 1944,
Bretton Woods Resolution VI, which called upon
the neutral countries to disclose and to freeze Axis
assets, and the resolutions of the Inter-American
Conference on Problems of War and Peace held
in Mexico in Maich 1945. Not only did State De-
j)artnient officials eitlier participate in or originate
tliese resolutions but officers of the State Depart-
ment })articipated in the drafting of Law No. 5,
which set up the German External Property Com-
mission, and the Department actively sponsored
that law.
The record will reveal that, with the fidl accord
of the Secretary of State and Assistant Secretary
Clayton, two members of Amba.ssador Pauley's
reparation statf, one an officer of the Treasury De-
partment and the other an official of the State
Department, drafted the initial version of Law No.
5, the pertinent provisions of the Potsdam Declara-
tion, and a memorandum from the I'resident to
General Clay asking that the external-asset law be
pushed tlu'ougli tlie Allied Control Council. The
record will also reveal that, wiien the issuance of
the vesting decree in tlie Allied Control Council
was held u]i, the State Department took tlie matter
up with the governments of the other occui)ying
powers and succeeded in obtaining governmental
instructions to I'epresentatives on the Control
Council which resulted in issuance of tlie law.
The Department has also i)ublicly announced
its intention vigorously to imjilement tlie law vest-
ing German external assets. Assistant Secretary
Clayton has stated before the Kilgore Committee
that "The task of destroying the economic basis
JANUARY 20, 1946
77
of German ajjgression is one tluit requires vigorous,
simultaneous action along a number of lines."
Mr. Nixon implies that "dirty deals" are being
concocted to keep German assets in the Western
Hemisphere from seizure ■which wouUl prevent
their use in preparation for World War III. The
Depai'tment's views in respect of the seizing, liqui-
dation, and forced sale of German assets in this
hemispliere so as to eradicate completely inimical
Gernum influence have many times been ex-
pressed— most recently in a radio speech by As-
sistant Secretary' Braden on January 5, 1946 — and
indicate the absurdity of the implication in Mr.
Nixon's statement that the Department is attempt-
ing to preserve German assets in the Western
Hemisphere. On the contrary, as early as the Rio
conference in January 1942 the American repub-
lics entered into inter-American agreements in this
respect which were amplified in the resolutions of
the AVashington conference in June 194::! and re-
flected in the resolutions of the Mexico City con-
ference. Assistant Secretary Clayton's report of
July 1945 before the Kilgore Committee describes
this program and its accomplishments as of that
time in some detail. Consultation among and joint
action by the American republics on this prob-
lem has been a publicly announced program since
early 1942. The cf)nsultati ve pi'ocedui'e is designed
to reinforce a pi'ograni which this Government
has, at all times, backed to the hilt. This consult-
ative procedure does not mean that the Depart-
ment's views with regard to the eradication of Ger-
man influence in this hemisphei'e have changed in
any respect whatsoever.
The State Department has recently indicated to
the United States representative on the German
External Property Commissif>n that, consistent
with this program for the replacement of German
interests and together with the expressed commit-
ments of this Government in the inter-American
agreements referred to, the question of seizure of
the remaining Axis assets in this hemisphere
should be deferred pending consultation between
the American republics whicli are parties to the
agreements in question. Resolutions XVIII and
XIX of the Mexico City conference both provide in
part as follows:
"That the American republics expressly agree
that their rights in property vested, affected, seized
or intervened up to the present time or in the fu-
ture, shall remain, with respect to the final dispo-
sition of all of such propertj' or of the respective
proceeds, in status quo, until the American govern-
ments individually reach a final decision regarding
such disposition or enter into international agree-
ments in this respect, in so far as they consider it
in their respective intei-ests."
Mr. Nixon's statement reflects a fundamental
misconception of the nature of the German Ex-
ternal Property Commission and the manner in
which it can operate outside of Germany. A pri-
mary function of the German External Property
Commission is to investigate and prepai'e cases
with respect to external assets. Strenuous efforts
in this direction will be required. But it does not
appear that Mr. Nixon's statement reflected the
understanding, concurred in by General Clay at
tlie time of liis recent visit to Washington, that the
negotiations with the neutral governments would
have to be conducted on the dijilomatic and gov-
ernmental level. The Allied Control Council has
no formal representation or metliod of communi-
cating with the neutral govei-nnients otlier than
througli regular diplomatic cluuinels of the occu-
pying powers. Matters affecting the relations of
the negotiating governments, beyond the jurisdic-
tion of the Control Council, would be involved in
such negotiations. It was, however, always con-
templated that the German External Property
Commission would be represented at such negotia-
tions, that the law vesting German external assets
would be the basis of these negf)tiatioiis, and that
the Coinmission would have an important role in
procedures resulting from the negotiations.
Mr. Nixon's statement rejjresents a clear dis-
service to the cause of the Allied nations. The
State Department reaffirms its intention to prose-
cute vigorously, as it has been doing, the question
of German external assets. The Department de-
nies completely the implications of a statement
which apparently arose from a fundamental mis-
understanding of an essential division of responsi-
bilities between the Control Council and the gov-
ernments of the occupying powers.
It may be added that neither prior to nor since
issuance of his remarks has Mr. Nixon troubled to
furnish the State Department with a copy of them,
so that this statement has necessarily been pre-
pared only on the basis of press reports of those
remarks.
78
$25,000,000 Loan to
Greek Government
[Released to the press January 12]
Note pvenented o-n January 12 to the GreeJc Foreign
Office hy the Arnericah Amia-^sador in Athens in-
forming the Greek authorities of the approval hy
the Export -Import Bank of a $2.5,000,000 loan ' to
the Greek Goi^ernment
The United States Goveninient acknowledges
receipt of the letter addressed by Mr. Tsouderos to
tlie Ambassador of the United States in Athens,
submittino- suggestions for economic aid to Greece.
The United States (iovernment is mindful of the
important contrilnitions made by Greece to the
successful conclusion of the war and sympa-
thetically aware of the tremendous devastation
visited on Greece during the period of hostilities.
In the face of overwhelming odds Greece exhibited
a courage in resistance which served as an example
to the liberators who eventually were able to re-
lease Europe from enemy domination. Tlie relief
provideil to Greece througli military liaison and
' With relatively iiniiupoi-tant exceptions, the xn'oceeds
of the loan may be used only for inirchase in the United
States of niaterialK. eiinipnieiit, and .services for the
re.storation of iiroihictive facilities in Greece.
According to an announeenient by tlie Export-Import
Bank on .Jan. 11, 1946, the use of the loan is restrieted
to certain types of materials and equipment approved or
to be approved by the Exixirt-Import Bank. These are
expected to be approximately as follows:
Approximnie
Item dollar value
1. Equipment for liarlior wurk.s — reconstruc-
tion of destroyed liarl)oiis .$1, (>.jO, 000
2. Roads and highways i-epair and mainte-
nance; equipment and various tools and
materials for road-repair-machinery
workshops 5, 300, 000
3. List of main outfits, machinery and tools,
etc., for the construction of the new
water works for augmenting the Athens
and Piraeus water supplies 700,000
4. Railway equipment 2, 100, 000
5. Salvaging machinery and e(iuipment . . . 1, ."lOO, OOO
6. Pilot-sliips and motorboats S(», 0(X)
7. Machinery and material required for the
alteration of 6 corvettes to postal ships . 4.50, 000
S. Floating docks and equipment 800, 000
9. Materials for the repair of merchant
ships 400, 000
10. Equipment for the mercantile marine — In-
struments and clothing 100, 0()0
n. Passenger motoi- veliicles 120,000
DEPARTMENT OF STATE BULLETIN
the current operations of UXRRA is an effort on
the part of the United States along with other
Allied countries to demonstrate their grateful
recognition of the tremendous sacrifices Greece has
made. Further assistance toward reconstructi(m
will be afforded througli a $25 million Export-
Imi:)ort Bank loan. By means of this loan Greece
will be able to acquire certain essential supplies
and equipment.
There is a danger, which should not be ignored,
that if energetic steps are not taken to improve
the present internal economic situation, the assist-
ance from the United States will not produce the
lasting benefits that are hojied for. An immediate
improvement in the economic situation in Greece
should create an atmosphere favorable to the suc-
cessfid holding of national elections. Elect itins
accurately reflecting the wi.shes of the Greek people
should bring about an improved jjolitical situation
which should contribute substantially to long-run
economic recovery and to future stability.
The severe difficidties which Greece has en-
countered since liberation can be traced in large
part to the self-sacrificing heroism with which the
12. Rubber tires and inner tubes for motor ve-
liicles $500,000
13. Requirement for the maintenance and com-
pletion of the hydraulic works of Mace-
donia 150,000
14. Telegraph and telephone overhead line ma-
terials— materials for the automatic ur-
ban telephone networks — main and
branch telephone-exchange equipment
for the urlian automatic telephone sys-
tem, and
15. Equipment and materials for telecomnuuii-
cations 2,000,000
16. Water-purifying plant — .\tliens — materials
and equipment 30, 000
17. Machinery and equipment for the mainte-
nance and repair of the hydraulic works . 2, 000, 000
IS. Macliinery and equipment of state-con-
trolled electric-power public utilities . . 1.000,000
19. Wire tietting for use in the flooded areas of
Macediinia, Thrace. Messenia, etc. . . . 50,000
20. Instruments and equipment for hydrologi-
cal research 100,000
21. Life belts 20,000
22. Spares and material for the repair and
maintenance of the gas works 20, 000
23. Machinery and spares for industrial instal-
lations 1, 350, 000
24. Engineering and technical services SIX), 000
25. To be allocated 4.080,000
ToT^L 25,000,000
JAIWARY 20, 1946
79
Greek people resisted the common foe. The re-
sulting emergencj- conditions have prevented suc-
cessive Greek governments from carrying out
effectively the stringent kind of internal economic
stability program that is required. The Govern-
ment of the United States is aware that Greece's
burden is a heavy one, but it is convinced that the
assistance being extended to Greece can accom-
plish little toward economic recovery unless the
Greek Government itself undertakes rigorous
measures to control inflation and to stabilize the
currency, to reduce Government expenditures and
to augment revenue, to increase the efficiency of the
Civil Service Administration, and to revive indus-
try and trade.
The execution of such a program has been the
announced intention of several ISIinistries which
have been in power in Greece during recent months
but in no case has it been possible for them to pur-
sue such a program to a successful conclusion. It
is assumed that the present Government also has
under consideration a similar program. The ex-
tent of possible further American economic assist-
ance to Greece will nece.ssarily be influenced by the
effectiveness with which the Greek (Government
deals with the problem of economic stabilization.
The United States Government has been advised
by the British Government of the hitter's proposal
now under discussion with the Greek Government
to send an Advisory Economic Mission to Greece.
In view of the interest which this Government has
in the success of the economic stabilization and
recovery of Greece, it welcomes this evidence of
the desire of the Briti.sh Government to extend
advisory aid to Greece. If Greece should need ad-
ditional technical assistance, the United States
Government would be prepared, upon request of
the Greek Government, to make available Ameri-
can technical economic experts to consult on Greek
financial and economic programs. The particular
qualifications of any exjierts which might be de-
sired could be determined in consultation between
the two Governments, so that they would be best
equipped to assist on those problems which are now
most urgent in Greece.
The Greek Government can be assured that the
United States Government is fully aware of the
grave difficulties which beset Greece. It hopes,
however, that the Greek Government, by taking
firm action and at the same time being confident of
outside assistance, will be able to lead Greece on
the road toward economic recovery.
Plants Available for Allocation
on German Reparation
Account
[ Released to the pross by the Department of Ooimiieroe .Tanuary 6]
The Department of State and the Office of Inter-
national Trade. Department of Commerce, re-
leased on January (i the first list of two groups of
individual industrial plants which have been
declared available for allocation on the German
reparation account by the Allied Control Council.
American l^rms or persons interested in accjuir-
ing any of them are asked to indicate promptly
their interest in accordance with the procedure
descril)ed lielow so that the Ignited States claims
to specific plants can be proi)erly determined. An
indication of interest constitutes no commitment
to purchase. It is expected that some of these
plants will be available by the latter part of the
year, after allocations are made and dismantling,
packing, and transportation arrangements are
comideted.
On this first list are 4o plants procllicing such
things as electric power, aluminum foil, chemicals,
m.ichine tools, ignition equipment, coke and by-
products, screw machines, aircraft parts, optical
equipment, forgings. ball bearings, motorcycles,
small arms, explosives and annmuiition, sub-
marines and small ships, harvesting equipment,
tractors, cement, pig iron, stoves and household
etiuipment.
Available details concerning these plants will
be furnished b_v the State Department and GIT.
Subsequent lists will be made public as other (Ger-
man factories are declared eligible for removal by
the ACC.
American firms or persons interested in purchas-
ing for transfer to the United States any of the
plants listed in either group are asked to indicate
their interest to the Office of International Trade,
Department of Commerce, Washington.
Any American concern or person interested in
purchasing a plant in either group for transfer to
a third country should, however, file a statement
of interest with the Division of Investment and
Economic Development, Department of State,
Washington. For plants in Group 1 statements
should be received by January 10, and for those in
Group '2 by January 25.
In determining which plants will be claimed for
transfer to this country, consideration will be given
80
DEPARTMENT OF STATE BULLETIN
to the need for and availability of such facilities in
the United States.
Persons or firms interested in purchasing for
transfer to this country any German plant not on
this list and having infornuition concerning it
are aske<l to furnish as much detail as possible to
the OIT as to the location, ownershij), type of pro-
duction, and equipment. In the event this plant
is subsequently declared available for removal as
reparation, the interested persons or firms will be
informed.
Persons or firms who own or have a substantial
property interest in industrial plants in (iermany
which may be declared available for removal on
reparation account and who desire to purchase
and transfer such plants for operation in other
foreign countries should communicate with the
Division of Investment and Economic Develop-
ment, Department of State. It is expected that
wholly German-owned plants will be the first to
be earmarked for removal from (Jermany, l)ut the
program of reparation and economic disarmament
may require the removal of some industrial plants
wholly or partly owned by nationals of Allied
countries.
Whenever a jtlant in which a substantial Amer-
ican property interest exists is earmarked for re-
moval, the Department of State will determine,
after consultation with the American owners
involved, whether the United States should claim'
such plant as part of its reparation share. If
the ))lant in question is actually obtained by the
United States (lovernment as reparation, due con-
sideration will be given to tiie American property
interests in determining the new foreign location
of the plant and tlie conditions of its sale. Per-
sons or firms who desire to purchase other Ger-
man plants which have or may become available
as reparation, in order to transfer them to other
foreign countries for operation, should likewise
connnunicate with the Divisnm of Investment and
Economic Development, Department of State.
Claims of American firms or persons arising out
of removal of plants in which they may have a
property interest will be settled in accordance
with such legislation as Congress may enact.
The list of plants follows:
Gkoi'I' I (StatenuMits of interest should be re-
ceived by Jan. 10), Phtntfi araihihle for aJlocation
hy ACC to the I iifer-Alliid Rcpanttion Agency
and to Rum/a and Pot and:
Deut.sche .Sohiff- iiiul Araschinonbiui A.G., sliipbuikliiig
iilaiit. lit l!rciii<-ii-V;iliMitiii
C. F. Boigward, toriicdo plaTit. at Bremen
Ndi-ddeutselie Hnette Aktiengesell.scliat't, coke and by-
products, at Bremen
The Halin Tessk.v Index Werke, screw machines, at
Ksslingen-Necku r
Norddeutsche Dornierwerke No. 2 factory, aircraft parts,
at Liibeck
Norddeiitselie Dornierwerke No. 4 factory, beds and
liou.sehold utensils, at Rotlieheck
Arms factory. Rinker at Minden
Metallwerlve Wolferdmettel (iMBH. armament, Wolfen-
buettel near Brunswick
Stulilrelirfabrik Von Kudolf Sieverts, Hamburg Berge-
dorf
Norddeutsche Dornierwerke No. 7 factory, Sierksrade
Pabrik Kanfburen, smokeless powder, near Kaufburen
Fabrik .\scliau, introcellulose, near Muehldorf
Fabrik Ebenhausen, introcellulose and smokeless powder,
near Ingolstadt
Wehrinaclit Ordnance Plant, Strass
Geretsried-Wolfratshausen, loading ammunition, Wolf-
ratshauseu
VVehrmacht Ordnance Plant, Desnig
AVerke Tscheldin, ahuninum foil, Tenningen
Maschinenfabrilv Fahr A.G., harvesting equipment and
tractors, Gottmadingen
Maschinenfabrik (;elirii<ler Kramer, ti'actors, Gottma-
dingen
Mauser Company, ritles and pistols, Oliendorf (Wiirt-
tenil)erg)
I. G. Farben A.G., vitryl chloride, Rlieinfelden
Degussa Company, peroxide of hydrogen, Rlieinfelden
R. Bosch, ignition equipment, Sulz ( Wiirttemberg)
Suddeutsche Arguswerke, small screw pieces, Baden-
Baden
Gkoup II (Statements of interest should be re-
ceived by Jan. 25), Plants availabte for aJlocation
among member nations lyy the Inter-Allied Repara-
tion Agency :
Power plant of the Grosskraftwerke JIannheim A.G.,
at Mannheim
Machine plant, Hanwell-Lug, at Diisseldorf
Fireproofing plant, Beiulorf on Rhine, at Bendorf
Optical-instrument plant, Hensolt, at Herboru
One-half ball-bearing works of Kugel Fisher at Schwein-
furt
Mathes and Weber's soda plant at Duisburg
Lathe and machine-tool plant, Wagner at Dortmund
Lathe and machine-tool plant. Fretz Mueller at Esslingen
Lathe and machine-tool plant, Bohne Kohle at Esslingen
Klockner Humbolt Dietz, diesel-engine plant at Ober-
virsel
Hastedt steam-electric plant at Bremen
Togency hydroelectric plant at Muehldorf
BMW motorcycle plant at Jlunich
Forgings and cranksh;ifts plant, Kusl)ellwellenwerke,
Glinde at Handmrg
Small-arms plant. Metalhverke Neuenganune at Ham-
burg
Hanseati.sche Kettcnwerke, Hamburg, pr<iduclng cart-
ridge cases and fuses
Explosives plant, Falirick Hess Lichenau at Fiirsten-
haaen
JANUARY 20, 1946
81
Recognition of Austrian
Government
[Released to the press January 7]
In accordance with the resohition of December
IS, 1945 of tlie Allied Council in Austria, tlic mem-
bers of the Council unanimously reconnnended to
their respective governments that the Austrian
Government formed by Chancellor Leopold Figl
as a result of the mandate received in the elections
of November 25, 1945 be recognized by the states
represented on the Council. The recogniticm of
the Au.strian Government has been approved by
the President, and the United States member of
the Allied Council has been instructed to notify the
Austrian Government to this effect. The Presi-
dent has in addition sent the following telegram
to Dr. Karl Renner on the occasion of his election
to the presidency of the Austrian Republic :
"I wish to extend to you my sincere congratu-
lations on your election as President of the Aus-
trian Rei^ublic and my best wishes in your task
of completing the liberation of Austria and the
revival of an independent and democratic state.
I can assure you that the people of the United
States will wish to assist Austria in this endeavor."
The recognition of the Austrian Government by
the United States in no way affects the supreme au-
thority of the Allied Council. The Council will
continue to operate in carrying out the Allied ob-
jectives in Austria. As the Council proceeds with
its ta.sk of eliminating Nazi influences and insti-
tutions in Austria, and assisting in the reconstruc-
tion of democratic life, it is hoi)ed that a large-
scale reduction may be made in the number of oc-
cupation troops of the four states and that Austria
may progressively acquire the status of an inde-
pendent state. The United States Government also
hopes that 'an Austrian agent will arrive soon in
Washington to discuss matters of mutual interest
which clo not affect the supreme authority of the
Allied Council.
1933 Sanitary Convention
United Kingdom
The Ambassador of the Netherlands informed
the Secretary of State in a note dated November
15, 1945 that the Government of the United King-
dom deposited in the archives of the Netherlands
Government on September 10, 1945 the acceptance
of the International Sanitary Convention for ae-
rial navigation of April 12, 1933 ^ on behalf of
the British territories of Newfoundland, Basuto-
land, Bechuanaland, and Swaziland.
The Ambassador further stated in his note that,
in accordance with article (15, paragraph 2, of the
1933 convention, the acceptance shall become bind-
ing for these territories on the one hundred and
twentieth day after the day the communication
was deposited with the Netherlands Government.
United Kingdom Monetary
Agreements
Czechoslovakia, Netherlands, and Norway
The State Depiirtment has received from the
American Ambassailor at London British com-
mand papers 6694, 6681, and 6697, containing the
te.xts of monetary agreements between the United
Kingdom on the one hand and Czechoslovakia,
signed November 1, 1945, the Netherlands, signed
September 7, 1945, and Norway, signed November
8, 1945, resjiectively, on the other. Previous is-
sues of the Bulletin have described recent mone-
tary agreements between tlie United Kingdom and
Belgium, Denmark, France, and Sweden. -
As in the case of those agreements, the chief
purpose of the latest monetary treaties is to facili-
tate the reestablishment of commercial and finan-
cial relations between the United Kingdom and
other countries which were interrupted by the
war. In 1938 the seven Euroi^ean countries
named above took 17.1 percent of the United
Kingdom's total exports and supplied 16.5 percent
of that country's general imports.
The agreements with Czechoslovakia, the Neth-
erlands and Norway follow closely the general
pattern of the agreements previously concluded.
The most important undertakings are the
following :
1. Subject to the provisions mentioned in j^ara-
graph 5 below, a fixed rate of exchange is estab-
lished between the pound sterling and the cur-
' Treaty Series 901.
= Bulletin of Jan. 14, 1945; p. 66 : .\i)r. 1, 1945, p. 585 ;
June 3, 1945, p. 1016 ; Aug. 5, 1945, p. 191 ; Aug. 12, 1945,
p. 220 ; and Oct. 14, 1945, p. 563.
82
DEPARTMENT OF STATE BVLLETIN
rency of each of the other eontnu'ting govern-
ments. This rate is not to be varied, in the case
of Czechoslovakia and the Netherlands, except
after mutnal considtation ; and in the case of Nor-
way, except after giving to the other party "as
nmch notice as may be practicable'".
2. Each of the parties to the three agreements
undertakes to furnish its own currency against
the currency of the other inirty, thus providing
the latter with what is, in effect, a line of credit
for current transactions. Net balances accumu-
lated through the operation of this provision are
linuted. in tiie case of Czechoslovakia to a maxi-
mum of 1,()()(),000 pounds sterling or 200,000,000
koruna, and in the case of the Netherlands to a
maximum of 5,000,000 pounds sterling or r>3,450,-
000 guilders. When the specified amount of the
net balance has been reached, further sales of cur-
rency are to be paid for in gold. In the Anglo-
Norwegian agreement no specific limit is placed
on the amount of currency either contracting gov-
ernment may purchase from the other.
3. The United Kingdom undertakes to permit
the use of sterling at the disposal of residents of
Czechoslovakia, the Netherlands, and Norway, re-
spectively, for payments, not only in the United
Kingdom but in any other part of the sterling area
as well, and for transfers to other residents of those
respective countries. A corresponding commit-
ment is undertaken by Czechoslovakia, the Nether-
lands, and Norway. It is to be noted, however, that ~
the agreements are bilateral. Sterling available
to residents of Czechoslovakia, for example, can-
not be used for jiayments to residents of the Neth-
erlands. The contracting governments also agree
that "as opportunity offers" they will attempt to
make balances held by residents of the other con-
tracting government available for payments to
residents of "third" countries.
4. The contracting governments agree to "co-
operate wilh a view to assisting each other in keep-
ing capital transactions within the scope of their
respective policies and, in jtarticular, with a view
to preventing transfers between tlieir areas which
do not serve direct and useful economic or commer-
cial purposes".
5. In each case there is provision for review of
the agreement in the event that the contracting
governments should adhere to a general Interna-
tional Monetary Agreement. All the agreements
are terminable on three months" notice.
All - Hemisphere
Copyright Conference
[Released to the press by the Pau American Unionl
An inter-American conference of copyright ex-
perts, charged with drafting a permanent agree-
ment to give all intellectual works uniform protec-
tion throughout this hemisphere, will meet in
Washington beginning June 1. 194G.
The Governing Board of the Pan American
Union, at its regular monthly .session held on De-
cember 5, 1945, adopted the report of a committee
appointed to study this subject. The comnnttee
recommended that a conference of special dele-
gates from all the American republics be called to
exchange views on the present copyright system
and draw up a treaty for ratification bj' their re-
spective governments.
Legal i^rotection of authors and composers in
America is provided at present by several multi-
lateral and numerous bilateral agreements, as well
as certiiin reciprocal arrangements. The basic in-
strument is the Buenos Aires convention of 1910,
but, since only 14 countries ratified this agreement,
it does not afford over-all protection.
More important still, there are no inter-Ameri-
can treaties covering work produced in the newer
fields of radio and television. It will be the pur-
pose of the conference to provide protection for
such scripts, as well as to harmonize the principles
embodied in existing agreements which relate to
published works.
Inter-American Indian
Institute
Gmitemiila
The Mexican Ambassador informed the Secre-
tary of State in a note dated December 12, 1945
that the Republic of Guatemala has adhered to
the convention providing for the creation of. an
Inter- American Indian Institute which was open
for signature at Mexico City from Novemlier 1
to December 31, 1940.' The Guatemalan adher-
ence was communicated to the Mexican Govern-
ment in a note dated October 29. 1945 and deposited
in the Ministry of Foreign Aff'airs of Mexico on
October 30, 1945.
' Treaty Series 978.
JANUARY 20, 1946
83
Military Aviation Mission
^Bolivia
By an excliange of notes at AVashington, dated
November 1 and December 3, 1945, the agreement
between the United States and Bolivia for the as-
signment of a United States Military Aviatitm
Mission to Bolivia, signed at Washington Septem-
ber 4, 1941.' was renewed for four years from Sep-
tember 4, 1945.
D To rerommencl tliaiiges in the navigation laws of
the United States and in the Foreign Service regulations
as related to the functions listed under paragraph I A
above.
E To assist masters of vessels in matters relating
to entrance and clearance of vessels in foreign ports and
ports of the United States.
The Foreign Service
Air-Transport Agreement with
Czechoslovakia
Diplomatic Offices
The American Legation at Bangkok, Siam, was olE-
eiall.v opened on .January ."i. I04t).
1 Relea.sed' to the press .lamiary 11]
The Department of State announces that a bilateral
air-transport agreement has been concluded with the
Czechiisliivak (iovernment, providing for so-called Fifth
Freedom trattic privileges. The agreement became oper-
ative (in Jaiiuar.v 3., ly-lB. which was the dtite of its
signature in I'raha.
Authority is granted for the operation of an American
civil air service on a route via London and Brussels to
Praha, and extending through central Europe and the
Near Eaist to India. Czechoslovak air services are
granted reciprocal rights to operate on a route to I'raha
from New York.
The Department
Transfer of Functions Concerned with
Consular Services to Ships and Seamen
I Tr.\nsfer of Responsibiuty foe Consular Services
TO Ships AND Seamen. (Effective 11-1-45) The responsi-
bility for formulating and coordinating the work of the
Department concerned with protection abroad of seamen
and official services to shii)S by the Foreign Service of
the Ujiited States, is hereby transferred from FA. Otiice
of the Foreign .Service, to SD, Office of Transport and
Conunuriications I'olicy. This will include the following
functions :
A To provide services for the shipment, discharge,
relief, repatriation, and burial of seamen, and services to
American aircraft and crews.
B To ad.hist disputes between masters and crews of
vessels.
C To handle estates of decea.sed seamen.
' Executive Agreement Series 219'.
UNO — CoiitiiiiK (I fnnii imi/r On.
ests of tlie big and small states against aggression.
The counteiposing of the big countries witli the
small ones has nothing in common with the prin-
cij^les of the United Nations Organization, wliich
has been created in the interests of the struggle
against aggressive states and their allies and
wiiich united the })eare-loving countries, big and
.small, in order to light for peace and international
security. . . . Voices are being heard from
somewliere to the effect that the Charter has al-
ready become obsolete and needs revision. Such
allegations must be decisively rejected by all those
wlio. not merely by words but by actions, are try-
ing to build up strong and effective machinery for
the maintenance of security'."
Notable in the voting for membership on the
Security Council was Canada's withdrawal in
favor of Australia. In the voting for members
of the Economic and Social Council, New Zealand
withdrew in favor of Yugoslavia.
United Nations delegates were welcomed in a
large demonstration Thursday evening at Royal
Albert Hall, where more than 200 of the civic
heads of Great Britain greeted the delegates.
Field ilarshal Sir Hai'old Alexander presided over
the meeting, which was organized by the United
Nations Association of Grreat Britain, a private
group engaged in prcimoting understanding of the
United Nations and its principles. Speakers in-
cluded Mrs. Eleanor Roosevelt, Assembly Presi-
clent Paul-Henri Spaak. and Lady Megan Lloyd-
George, daughter of Britain's late AVorld War
leader.
84
DEPARTMENT OF STATE BULLETIN
Publications
of the DEPARTMENT OF STATE
For sale h[i the SiiiKiiiitiiulriit of Dociiiiicnts, Ouvenimcnt
Printing Office, Washington 25, D. C. Address requests
direct to the Superintendent of Documents, except in the
ciise of free piihiieations, U'hich may he obtained from
tile Ijciiiirtiiiint of State.
Menioranduni on the Postwar Internationnl Information
Program of the United States. By Di-. Artliur W. M;ic-
malioii, Consultant on Administration in the Department
of State. Pub, 2438. xx, 13.5 pp. 3(V.
Working paper pre.senting (acts and poliev alterna-
tives confronting tlie Depai'tment of State in organiz-
ing an overseas information program for tlie future.
Anglo-American Financial and Commercial Agreements.
Commercial Policy Series SO. Pub. 2439. 12 pp. 5^.
Text of financial agreement, together with statement
by the President of tlie United States and the Prime
Minister of Great Britain and joint statements on
commercial policy and on settlement for lend-lease
. and reciprocal aid. suiplus war proiierty, and claims.
International Council of Scientific Unions: Brussels and
Cambridge. By Esther C. Brunauer, Division of Inter-
national Organization Affairs, Department of State. Pub.
2413. 12 pp. 5t
A history of the international organization of scien-
tists and scientific work from the inauguration of the
Council following World War I to the present, with
some discussion of the new interest in international
scientific collaboration and control of the application
of scientific knowledge created by the achievements
of World AVar II.
Relief and Rehabilitation — What Is Our Stake? For-
eign Affairs Outline No. ', on "Building the I'eace", Dec.
1945. Pub. 2433. 4 pp. Free.
Prepared liy the Department of State to acquaint the
American people with the problem of the hungry and
homeless women and children in Europe and Asia and
wily it is onr problem.
Certain Problems of Marine Transportation and Litiga-
tion. Agreement Between the United States of America
and Norway — Effected by exchange of notes signed at
Washington May 29, 194.5 ; effective May 29, 1945. Execu-
tive Agreement Series 471. Pub. 2403. 4 pp. 50.
Agreement for the waiver of claims by each gov-
ernment against the other with respect to vessels
and cargoes lost or damaged in marine transporta-
tion.
Health and Sanitation Program. Agreement Between
the United States of America and Jtlaiti — Effected by ex-
change of notes signed at Port-au-Prince June 29 and
.luly 12, 1944. Executive Agreement Series 4.53. Pub. 2417.
3 i)p. 5<*.
Continuation of cooperative program of pulilic health
and sanitation undertaken in Hiiiti since 1942.
Sanitary Maritime Navigation. Convention Between the
United States of America and Other Powers Jlodifying
the Convention of June 21, 192C — Signed for the United
States Jan. 5, 194.5; ratified by the I'resident May 29, 1945;
Ijroclainied by the President May 29. 191.5; effective as to
the United States May 29, 1945. Treaty Series 991.
38 pp. 100.
Modification of the 1926 convention in light of present-
day conditions which call for special measures to
prevent the spread by land and sea across frontiers of
epidemic or other communicable diseases.
Military Service. Agreement Between the T'nited States
of America and Ecuador — Effected by exchange of notes
signed at Washington Apr. 2 and 5, 1945. Executive
Agreement Series 475. Pub. 2426. 4 pp. 50.
Agreement permitting, on a reciprocal basis, nationals
of one country residing in the territory of the other
country, but who liave not declared their intentions
of becoming citizens of the latter country, to elect
to serve in the armed forceti of the coimtry of wliich
they are nationals.
Jurisdiction Over Prizes. Agreement Between the United
States of America and New Zealand — Effected by ex-
change of notes signed at Wellington Nov. 3, 1942 and
Jan. 28, 1943. Executive Agreement Series 454. Pub.
2435. 5 pp. 50.
Agreement providing reciprocal privileges to facilitate
the disposition of prizes captured during the present
war. ,
Temporary Migration of Costa Rican Agricultural Work-
ers. Agreement Between the I'nited States of America and
Costa Rica Api)ri>ving Memm-andum Agreement Signed
May 20, 1944 — Effected by exchange of notes signed at
San Jose May 29, 1944. Executive Agreement Series 451.
Pub. 2428. 16 pp. 100.
Contract for the furnishing of a supply of laborers
from Costa Rica for temporary employment in the
timber and lumber and food-processing industries in
the United States.
Cooperative Rubber Plantation Investigations. Agree-
ment Between the United States of America and Haiti —
Effected by exchange of notes signed at Port-au-Prince
D3C. 29, 1944 and Jan. 8, 1945; effective Jan. 8, 1945
Executive Agreement Series 462. Pub. 2436. 6 pp. 50.
Supplementary agreement defining more precisely
certain procedures affecting the sale of ijroducts
grown on the lands of the experiment station and
facilitating the continued development of rubber
investigations and plantings.
A cumulative list of the pulilieations of the Department
of State, from Oct. J, 1929 to Jutij 1, 19.',5 {pub. 2.373), mail
he obtained from tlie Department of State.
U S GOVERNMENT PRINTING OFFICE 1946
PUBLISHED WITH APPROVAL OF DIRECTOR OE BUREAU OF THE BUDGET
THE DEPARTMENT OF STATE
msm
VOL. XIV, NO. 343
JANUARY 27, 1946
General Assembly of the United Nations
REPORT FROM LONDON
Statements by Assistant Secretary Benton on AP Action
The Significance of the British Loan
By CLAIR WILCOX
Last Remnants of National Socialist Ideology
By ASSISTANT SECRETARY BRADEN
Korea and the Far East
By JOHN CARTER VINCENT and EDWIN M. MARTIN
^^^NT o^
■^
For complete contents
see inside cover
/
\
/
THE DEPARTMENT OF STATE
BULLETIN
Vol.. XIV'No. 34S» W^Kl * Publication 2155
January 27, 1946
For Bale by the Superintendent of Dociimente
U. S. Goveminent Printing Office
Washington 25, D. C.
Subscription:
52 iBSues, $3.50; gingle copy, 10 cents
Special offer: 13 weeks for $1.00
(renewable only on yearly basis)
The Department of State BULLETiy,
a weekly publication compiled and
edited in the Division of Research and
Publication, Office of Public Affairs,
provides the public and interested
agencies of the Government with
information on developments in the
field of foreign relations and on the
work of the Department of State and
the Foreign Service. The BVLLETIN
includes press releases on foreign
policy issued by the White House and
the Department, and statements and
addresses made by the President and
by the Secretary of State and other
officers of the Department, as well as
special articles on various phases of
international affairs and the functions
of the Department. Information con-
cerning treaties and international
agreements to which the United States
is or may become a party and treaties
of general international interest is
included.
Publications of the Department, cu-
mulative lists of which are published
at the end of each quarter, as well as
legislative material in the field of in ter -
na tional rela tions, are listed currently.
Contents
Page
General Assembly of the United Nations:
Address by tlie Secretary of State 87
Report From London to the Office of Public
Affairs, Department of State 89
Position of Department of State on AP Action:
Statements by Assistant Secretary Benton ... 92
Letter From Assistant Secretary Benton to Presi-
dent of Board of Directors of Associated
Press 94
The Significance of the British Loan. By Clair
Wilcox 96
Last Remnants of National Socialist Ideology. By
Assistant Secretary Braden 101
Korea and the Far East. Radio Broadcast . . . 104
American and Soviet Commands in Korea Plan Ad-
ministrative Coordination Ill
French Government To Take Part in Conference on
Peace Treaties 112
Policy on Japanese Mandated Islands 113
Military Missions to Control Council in Berlin . . 113
Reparation From Germany: Final Act and Annex
of the Paris Conference on Reparation .... 114
Ten Soutli American Republics Being Linked by
Pan American Highway 125
International Organizations and Conferences
Calendar of Meetings 127
Activities and Developments:
Far Eastern Commission 127
Providing for the Furnishing of Information and Assistance
to the Joint Anglo-American Committee of Inquiry on
Jewish Problems in Palestine and Europe 127
The Record of the Week
American Group To Observe Elections in Greece 129
Expansion of Food and Livestock Products in Caribbean
Area 130
Tran.sfer of Japanese Property 131
Assistance for American Correspondents Reporting UNRRA
Activities Abroad 131
Contributions to I'NRRA 131
Revocation of the Proclamation Suspending the International
Load Lines Convention in Ports and Waters of the
United States 132
Letters of Credence: Minister of Hungary 132
The FoREKiN Service
Consular Offices 132
Publications
Agriculture in the'Americas 124
•„. S. SUPERINTENDEfn Of IXjCUfcicnIi
MAR 19 1946
General Assembly of the United Nations
Address by THE SECRETARY OF STATE ^
WK HAVE MET liei'e todiiy to consider the report
of the Preparatory Commission. This report
is the result of painstaking and devoted Uibor by
the delegates on the Executive Committee and the
Preparatory Commission.
This preparatory work has made it possible for
the United Nations to begin its work at the very
start of the first year of peace after six successive
years of devastating war and less than five months
after the surrender of Japan.
For this prompt beginning, the world owes an
innneasurable debt to many who are not here today.
We are particularly indebted to Fianklin Delano
Roosevelt, Winston Churchill, and Joseph Stalin.
It was they who four years ago tliis month at
one of the darkest moments of the war joined with
their Allies to proclaim the United Nations Dec-
laration. Even as they exerted every effort to mo-
bilize and unite at that late and critical moment
the forces of freedom for survival, they knew that
military survival, military victory, was not enough.
The vision of those nations large and small which
joined in the United Nations Declaration was not
restricted to a wartime alliance. Their determina-
tion was to bind together in peace the free nations
of the world so that never again would they find
themselves isolated in the face of tyranny and ag-
gression. Their resolve was to see that military
victory was not a mere armistice to allow time for
aggressoi- nations to choose their victims and
enslave them one by one.
The purpose of these nations which united in
tiie defense of their freedom was not to escape but
to face the realities of the world in which we live.
They recognized as the peace-loving nations failed
to recognize after the last war that in this modern
world nations, like individuals, cannot live with
themselves alone.
They realized the lives and treasure which might
ha\-e been saved if the free nations of the world had
heeded in time the practical idealism of Woodrow
Wilson, Lord Robert Cecil, Aristide Briand, and
Maxim Litvinov.
They realized the lives and the treasure which
might have been saved if the free nations of the
world had united to preserve the peace before the
peace of any of them was broken instead of wait-
ing until aggression had engulfed the whole world
in flames and compelled them to unite or perish.
So the nations which were compelled to unite
in a war for survival resolved eA^en before victory
was attained that they would take stejis to pre-
serve a free and a united world. They resolved
to keep faith with the millions who were fighting
and dying to give the world the chance which it
so tragically missed after the first World War.
At Moscow in 1943, a start was made by Mr.
Hull, Mr. Molotov, and Mr. Eden. On that oc-
casion a pledge was undertaken by the United
States, the United Kingdom, and the Soviet Union,
in which China joined, to work for the creation of
an effective international organization. Then
came the Dumbarton Oaks Proposals, the Yalta de-
cision to call the San Francisco conference, and
finally the United Nations Charter, which 51
nations joined in writing.
The Charter is now part of the law of nations.
It has been ratified by all the countries which are
represented here. The i^re^Daratory work has been
completed. The Assembly of the United Nations
is no longer a j^lan on paper. It is a living reality —
the representatives are here in this hall. The Se-
curity Council and the Economic and Social
Council have been elected.
The functioning of the United Nations will de-
pend not merely upon the woi'ds of its Charter
or the rules or jjrocedures we adopt here or upon
the individuals we elect to hold office. It will
depend upon the support it receives from the gov-
ernments and the peoples of the nations which
have created it and which must sustain it.
If the United Nations lives in the minds and
the hearts of our peoples, it will be able to adapt
' Delivered on .Jan. 14, 1945 in London before the Gen-
eral Assembly and released to the press on the same date.
The Secretary of State is the chief representative of the
United States to the General Assembly.
87
DEPARTMENT OF STATE BULLETIN
itself to the changing needs of a changing world,
and it will endure. If it lacks broad popular
support, no charter iiowever jaerfect will save it.
I believe tlie United Nations will live. I be-
lieve it because it springs from the imjjelling
necessities of the age in which we live. It has been
born out of the indescribable pain and suffering of
many peoples in many lands.
It must live because in this atomic age the com-
mon interests which should unite free nations in
maintaining a friendly peaceful world far out-
weigh any possible conflict in interest which might
divide them.
The United Nations does not threaten any peo-
ple. It comes into conflict with no real or vital
interest of any of its members.
It is not interest, it is fear and suspicion which
in turn breed fear and suspicion that cast a shadow
upon the path of peace.
As the late President Roosevelt said, "We have
nothing to fear but fear itself. We must dedicate
ourselves to the task of exposing and eliminating
blind and unreasoning fears and the unnecessary
difficulties which they create.
Nothing can help dispel fear and suspicion so
much as cooperation in common tasks and common
problems. The opportunities afforded for work-
ing together within the United Nations can help
to break down habits of thinking in national iso-
lation and go far to bring about understanding
and tolerance.
The United Nations is not a mere pact among
its members — it is an institution or a series of
institutions capable of life and growth.
Let us use the institutions that we have created
to help one another rebuild a shattered world in
which there can be real security. Let us not be
unduly concerned about possible shortcomings of
the Charter before we have even tried to operate
under it.
No charter that must be acceptable to all of us
can be regarded as perfect by any one of us. But
it is a great tribute to the framers of the Chai'ter
that it has been accepted by all the United Nations
large and small.
It is argued that the great states may abuse the
rights given them under the Charter. There are
risks in any Imman undertaking. But I have
confidence that the great states will respect their
obligations. As President Truman stated in his
opening address at the San Francisco conference :
"While these great .states have a special respon-
sibility to enforce the peace, their responsibility
is based upon the obligations resting upon all
states, large and small, not to use force in inter-
national relations except in the defense of law.
The responsibility of great states is to serve and
not to dominate the world."
Great states as well as small states must come
to view their power as a sacred trust to be exer-
cised not for selfish purposes but for the good of
all peoj^les.
If the United Nations becomes a working insti-
tution with broad popular support devoted to the
development of peace, security, and human well-
being, whatever defects there may be in its lettered
provisions will not be beyond practical remedy.
Institutions that come to live in the minds and
the hearts of the people somehow manage to meet
every crisis.
But I offer a word of warning. Let us not ex-
pect feats of magic overnight from the institu-
tions we have created. Let us beware of the die-
hard enthusiasts as well as the die-hard
unbelievers. Let us not think that we can give
over any and every problem to the United Nations
and expect it to be solved. Let us avoid casting
excessive burdens upon the institutions of the
United Nations especially in their infancy.
I recall to you the clear {provisions of the Char-
ter which obligate member nations to make every
effort to settle their disputes by peaceful means of
their own choice before calling upon the United
Nations to intervene. The primary responsi-
bility of the United Nations is to build a lasting
system of peace and security capable of meeting
the stresses and strains of the future and to pro-
mote through more effective international cooper-
ation the economic and social well-being of the
peoples of the world.
In the months ahead we must concenti-ate upon
these tasks. We have first to provide the Security
Council with the force it needs to maintain peace.
This must be done by special agreements which
remain to be worked out between the Security
Council and the member states. We should begin
upon this task immediately.
We have another task of transcending impor-
tance. The establislmient of a commission to deal
with the problems raised by the discovery of
atomic energy is inseparably linked with the prob-
lem of security. It is a matter of primary con-
JANUARY 21, 1946
89
cerii to all nations. We must not fail to devise the
safeguards necessary to insure that this great dis-
covery is used for human welfare and not for
more deadly human warfare.
I hope that this Assembly will approve promptly
the resolution proposed by my Government in asso-
ciation with the United Kingdom, the Soviet
Union, China, France, and Canada so that this
commission may begin its work without delay.
The United Nations must be a cooiDerative effort
upon the part of all peace-loving nations. Our
fighting-men have given us this opportunity. A
great res23onsibility now i-ests upon all of us.
Upon the meeting of that responsibility depends
the future of civilized humanity.
Twenty-five years ago we in the United States
were not fully aware of our responsibility. But,
with others, we have learned from experience.
This time both the United States and its people
are deeply conscious of their responsibility. This
time on their behalf I pledge full and whole-
hearted cooperation.
REPORT FROM LONDON TO THE OFFICE OF PUBLIC AFFAIRS,
DEPARTMENT OF STATE
Loxnox, Jmi. 25. — Forceful machinery aimed
at controlling the potential war menace of atomic
energy, unknown to the world when the interna-
tional Charter was drafted at San Francisco, has
been added to the oi)erational arsenal of the
United Nations.
The General Assembly took unanimous action
to establish a commission to deal with the prob-
lems raised by the discovery of atomic energy as
it advanced on schedule into the third week of the
London meeting. Ahead of the Assembly, how-
ever, remain other vital organizational tasks, in-
cluding selection of judges to the International
Court of Justice, transfer of League of Nations
assets and functions, and preparation of the
L'niteil Nations budget, as well as selection of a
Secretary-General and a site for the permanent
United Nations headquarters. These nuist be
completed before the delegates can return home.
Atomic- Energy Proposal Almost Unopposed
Regarded as a potential stumbling block, the res-
olution setting up the Atomic Energy Conunission
met with little opposition during Committee and
Assembly discussion. Certain countries said they
would have preferred a different method of han-
dling the problem and a different membership
make-up of the Commission, but "none of these
views was pressed to the point of opposing the
resolution," the Committee reported to the Gen-
eral Assembly.
Pedro Lopez, Philippines Delegate, pointed out
to the Assembly that members of the Commission
are almost the same as those on the Security Coun-
cil. Some delegates seemed to react favorably to
Mr. Lopez' criticism, but none supported his
stand. The Atomic Energy Commission will
submit its report and reconnnendations to the Se-
curity Council, and on matters affecting security
it will be responsible to the Security Council. The
Council was established under the principle agreed
upon at San Francisco — that peace must be main-
tained by those countries with the best equipment
for maintaining it.
At the plenary session which adopted the reso-
lution. United States Secretary of State Byrnes
urged the Assembly to ''see that the world ceases
to be an armed camp". He added : "The problems
presented by the discovery of atomic energy and of
other forces capable of mass destruction cannot be
solved by any one nation. They are the common
responsibility of all nations, and each of us must
do our part in meeting them."'
"The First Important Act"
Audrey Vyshinsky, Soviet Vice Commissar for
Foreign Affairs, in his first statement to the As-
sembly since his arrival in London two days be-
fore, stressed the significance of setting up such a
commission. "This is the first important act of
the joint efforts of the United Nations to secure
peace and security in the world. Let this noble
work achieve a true and complete success."
J. Paul-Boncour, French Delegate, also voiced
support for the j^roposal and expressed the wish
"that this commission meet on the territory of the
American continent, whei'e the first utilization of
atomic energy was applied to end the last World
War and which has entrusted this power to the
United Nations".
The new Commission, composed of members of
the Security Council and Canada, has to "proceed
90
DEPARTMENT OF STATE BULLETIN
with the utmost dispatch and inquire into all
phases of the problem and make such recommen-
dations from time to time with respect to them as
it finds possible".
The Commission will make specific proposals:
(a ) for extending between all nations the exchange
of basic scientific information for peaceful ends;
(h) for control of atomic energy to the extent nec-
essary to insure its use only for peaceful purposes;
(c) for the elimination from national armaments
of atomic weapons and of all other major weapons
adaptable to mass destruction; (d) for effective
safeguards by way of inspection and other means
to protect complying states against the hazards of
violations and evasions.
Delegates agreed that the setting up of this
Commission as the first official act of the United
Nations General Assembly was a good augury for
the new Organization, entering upon its tasks on
the verge of the Atomic Age.
Another link in the operational chain was
forged by the Assembly during its second full
week of activity with the completion of the Eco-
nomic and Social Council's organization.
The Council adopted its provisional rules of
procedure and agenda at this first meeting, and
elected President, by acclamation, Sir Ramaswanii
Mudaliar of India. Vice Presidents, also elected
by acclamation, are Dr. Andriia Stampar of Yu-
goslavia, and Dr. Carlos Lleras-Restrepo of Co-
lombia.
Group Representatives Hear Trusteeship
Explained
In Church House, Westminster, where commit-
tees and subcommittees have been ironing out pro-
cedural kinks, representatives of private organiza-
tions met for the second in a series of informative
meetings and were given a detailed and authori-
tative picture of the United Nations trusteeship
procedure.
Ivan Kerno, alternate Czechoslovak Delegate
and rapporteur of the important Trusteeship
Committee, warned against confusing this Com-
mittee, now engaged in setting up the trusteeship
system, with the Trusteeship Council, which has
not yet been formed.
Dr. Kerno, a victim of five years of Nazi occu-
2)ation in Czechoslovakia and France, traced the
development of international trusteeship from its
beginnings in the League of Nations with its three
different types of "mandates".
One of the thorniest problems facing his com-
mittee, Dr. Kerno admitted, was the exact defini-
tion of the "directly interested states" with whom
the nations acting as trustees would have to com-
plete trusteeship agreements. It has not yet been
decided, he explained, whether these interested
states would be the five large powers, those ethni-
cally concerned (such as the Arab states) , or those
bordering the trusteeship area. Another impor-
tant decision would be the naming of the strategic
trusteeships by the Security Council, Dr. Kerno
added.
Among the organizations represented at Thurs-
day's meeting were the International Council of
Women ; AVomen's Pacific Institute ; U.S. Veterans
of Foreign Wars; United Nations Association of
the U.S.; American Jewish Committee; United
Nations Association of Great Britain; Commis-
sion on World Peace of the Methodist Church;
National Peace Council; St. Joan's Association
and Joint Alliance; World Jewish Conference;
B'Nai B'Rith; Salvation Army; National Associa-
tion of Business and Professional Women; Com-
mittee on Women in World Affairs; General
Federation of Women's Clubs; World Govern-
ment Association; Pan-Pacific Women's Associa-
tion; International Council of Women; and
Church Peace Union.
Security Council Faces Problems
Three impoi'tant political prolilems, apart from
the scheduled organizational planning of the As-
sembly, arose during the week. These, which
presented the Security Council with the first sub-
stantive matters to come before the United Na-
tions, were concerned with the "situations" in
Iran, Java, and Greece.
Iran's request for an investigation into the al-
leged Soviet interference in Iranian internal af-
faii's was the first to come up before the Security
Council. Shortly after, the Soviet and Ukrainian
Delegates presented similar notes requesting in-
vestigations into the presence of British forces in
Greece ahd Indonesia.
There was a diffei-ence of opinion as to whether
or not such substantive matters should be acted
upon at this first session, one which was scheduled
to deal basically with oi-ganizational problems.
The United States Delegation's position on this
was outlined by Secretary of State Byrnes in a
press conference when he said :
JANUARY 27, 1946
91
"AVIienever one of the states complains against
another state to the Security Council, it must be
assumed that the complaining state believes an
emergency exists for its justification, and it is my
belief that whenever that is done the states in-
volved must be given a hearing, and the quicker
it is given tlie better for the Organization."
Some observers felt that action on these prob-
lems would go far in strengthening public opinion
in favor of the United Nations. Others believed
that it was too early to test the new Organization.
Another important decision which the Security
Council must make is the selection of a candidate
for Secretary-General. The Council's permanent
members have to agree unanimously on the nom-
inee. At several informal meetings held thus far,
they did not reach unanimity and discussions were
to continue over the weekend. Lester Pearson,
Canadian Ambassador in Washington, is strongly
backed for the post. Others frequently mentioned
are Trygve Lie, Norwegian Minister for Foreign
Affairs, Wincenty Rzymowski, Polish Foreign
Minister, Dr. E. N. van Kleffens, Netherlands
Foreign Minister, and Stanoje Siniic, Yugoslav
Ambassador in Washington.
Because of the projected location of the United
Nations headquarters in the United States, there is
some sentiment that someone from a small Euro-
pean nation should be selected as Secretary-Gen-
eral. Also entering into consideration of candi-
dates is the sentiment that no one from any of the
five large powers should be selected.
Still to be decided is the actual site of the United
Nations headquarters in the United States. The
six-man committee inspecting possible locations is
scheduled to return to London and report on its
findings early in February. This connnittee may
suggest several alternate locations in the New
York or Boston ai'eas for General Assembly con-
sideration rather than one specific recommenda-
tion. Also to be selected are interim buildings
where headquarters can be maintained until new
buildings at the permanent site have b^en con-
structed.
Transfer of League Assets
Transfer of League of Nations assets and func-
tions is continually being discussed both by indi-
vidual and joint committees representing the
United Nations and the League of Nations. These
talks have been making exceptionally good prog-
ress. The General Assembly will have to ap-
prove, for the United Nations, what these commit-
tees decide. The League of Nations will probably
meet sometime in April to ratify these decisions on
behalf of the League.
Included in discussions are such functional mat-
ters as the transfer of several hundred treaties —
made between the various nations and the
League — ascribing to the League juridical func-
tions, appointments of special investigative com-
mittees, appointment of arbiters in special dis-
putes, anti-narcotic treaties, and other similar
work.
The League's 15-million-dollar buildings and
records at Geneva, as well as a sizeable amount in
the League treasury, will probably be turned over
to the United Nations who will have to decide
what their disposition will be. C. J. Hambro,
Norwegian Delegate to the United Nations Assem-
bly, is also repi'esenting the League in these dis-
cussions.
Judges of the International Court of Justice
still have to be elected, although the decision has
been made that the Court will be located at The
Hague. Nominations for these posts are being
made regularly, and it will be one of the Assem-
bly's most important tasks to discuss these nomi-
nations and ballot on them in the ensuing weeks.
United Nations Budget
One of the final, but certainly highly important,
items on the agenda still to be acted on by the
Assembly is the operating budget for the United
Nations. Preparatory Commission pi'ovisional
I'ules say, however, that when the Secretary-Gen-
eral is appointed he will suT)mit a provisional
budget for the approval of the Assembly. Mean-
while the Assembly, and previous work done by
the Preparatory Commission, is being financed by
the United Kingdom, which will be reimbursed
from subsequent national contributions. To tide
the Organization over during the interim period,
between this Assembly and the time the final
budget is approved, is a "working capital fund"
made up from contributions by the various mem-
ber nations under a foiniula used by the Food and
Agriculture Organization.
The General (Steering) Committee still has
under discussion the requests of the World Fed-
(Continued on page 126}
92
DEPARTMENT OF STATE BULLETIN
Position of Department of State on AP Action
STATEMENTS BY ASSISTANT SECRETARY BENTON ^
I consider wliolly unwarranted the fears ex-
pressed by tlie board of directors of the Associated
Press ''tliat Government cannot engage in news-
casting witliout creating the fear of propaganda
wliicli necessarily would reflect upon the ob-
jectivity of the news services from which such
newscasts are jirepared".
The Associated Press, the United Press, and the
International News Service have been furnishing
news to the United States (Tovernment for its
short-wave broadcasts overseas to the peoples of
other countries. I regret that the directors of the
Associated Press have decided to discontinue their
share of this service. They were asked to continue
this service until such time as the Congress decided
what should be the policy of this Government with
regard to the permanent short-wave-broadcasting
program, whether it sliould be in private hands or
under Government control. It is clear that such
broadcasting nuist be continued.
It is the fixed policy of the State Department to
advance tlie cause of press freedom everywhere.
Nothing in the international information pro-
gram of the Government, past or planned, contra-
venes this basic principle. I am proud of the
objectivity maintained by our interinitional
broadcasts. One of the purjDOses of short-wave
newscasting is to get reliable and objective Ameri-
can news into vast areas of the world where no
other news from America can penetrate. I can
only conclude that the directors of the Associated
Press were not fully informed about tlie program.
Yesterday's statement of Robert McLean, Presi-
dent of the Associated Press, recognizes the areas
"where the aftermath of war has created special
problems". This gives me hope that the Board of
Directors of the Associated Press, when it reviews
the evidence we can present on the vital importance
of present short-wave broadcasting into such
areas, will permit the AP service to continue for
such voice broadcasting.
'Released to the press Jan. 14 nnd Jan. IS.
I like to believe that the present decision of the
AP Board was affected by a general misunder-
standing of the actual informational activities
now proposed under my direction in the Depart-
ment of State. There are three different types of
activities which might be termed "newscasting":
1. During the war the Office of War Informa-
tion sent to its outposts abroad a cable and wire-
less newsfile prepared from items carried by the
three major American news services, which ap-
proximated 100,000 words daily. This service has
now been discontinued everywhere in the world
except for Germany, Austria, and Japan. M'here it
is now being wound up as the jjrivate agencies
take over, and for Shanghai, Manila, Singapore,
Saigon, and Bangkok. In these five latter spots
the daily word file has been reckiced from 100,000
words to 24,000. Further, this is now background
news rather than spot news. This .service is being
continued only because in these areas American
private news agencies have not yet begun to oper-
ate. It will be wholly discontinued as soon as
possible.
I have discovered that, in this first type of activ-
ity, there appears to be wide-spread misconception
of the policy of the Government. Let me restate
that policy : It is that the Government, through
the instrumentality of the Department of State, do
everything within its power to break down the
artificial barriers to the expansion abroad of pri-
vate American news agencies. It is to promote
such expansion and not to compete with it. That
effort goes forward and will continue to go
forward.
2. The radio bulletin of the Department of State
is the second newscasting activity. This bulletin
sends daily to our embassies and missions abroad
significant editorial opinion bearing on the foreign
policy of this Government, texts oi important Gov-
ernment documents, full or excerpted texts of
speeches by high-ranking Government officials, re-
ports of congressional action, and other Govern-
ment documentary material important to our mis-
JANUARY 27, 1946
93
sions. Such material is not normally covered by
private news agencies. This bulletin has been a
regular function of the Department of State since
1935. The only material carried in the bulletin
dei-ived from private news sources is a section,
averaging about four or five paragraphs, entitled
"Miscellaneous Press". This material is prepared
from paid-for wire services and from articles ap-
pearing in the metropolitan press. Such material
is for the personal information of those who re-
ceive it. It is not competitive to the wire services
and is not for i:)ublication.
3. Short-wave-radio voice broadcasts is the third
category. The vital importance of these was dis-
cussed in my letter to Mr. McLean. If such broad-
casts are to present a well-rounded picture of the
American scene it is obvious that the service of the
major American news services nuist be available in
their preparation. I must state in all candor that
it is inconceivable to me for a national of a Balkan
or any other country to be able to listen to the
Russian radio and the British Broadcasting Cor-
poration aliout developments throughout the world,
prepared from material furnished by an American
news agency, and yet listen to an American short-
wave broadcast from which the same source of
news is withheld.
From the foregoing brief analysis I can only
conclude that the action of the Board of Directors
of the Associated Press was taken under a misap-
I^rehension of our proposed operation.
Moreover I feel compelled to draw attention to
Mr. McLean's statement of yesterday that "rep-
resentatives of the Department"' at my request "had
discussed proposals with the top executive staff of
the Associated Press and with the Board of Direc-
tors at its special meeting last November".
Col. Noel Macy, a publisher and editor of news-
papers with 20 years' experience, and acting head
of the Department's Overseas Press and Publica-
tions Division, has furnished me a memorandum
on this. He states that he and Ralph McGill, editor
of the Atlanta Constitution, called on Mr. Kent
Cooper and Mr. Lloyd Stratton early in November
1945. The meeting lasted about a half-hour. At
the meeting it was suggested by Mr. Cooper, and
not by the Department of State, that Colonel Macy
and Mr. McGill appear at a Board meeting, already
scheduled and not a special meeting for this pur-
pose, to be held some two weeks later.
Mr. McGill being unable to attend, Colonel Macy
680860 — 46 2
attended the Board meeting alone. Colonel Macy's
interview with the Board lasted no moi-e than 25
minutes. Much of the discussion centered on the
needs of the Department for a wire service to Ger-
many and to Japan. At this meeting it was agreed
that there was no continuing need for the service
to Japan since the Japanese news agency, as well
as many Japanese papers, were to receive AP re-
ports directly. Possibly some 10 niinutes of the
discussion was devoted to newscasts. Colonel Macy
pointed out that voice newscasts were mostly in
foreign languages and included languages aimed
at such places as the Balkans and southeast Asia
where no other news from America penetrated.
Colonel Macy's memorandum continues :
"After the meeting Mr. Stratton wrote a letter in
which he said that the Board had decided that their
service would not be made available anywhere in
the United States but that it would be available for
those areas where the AP did not penetrate but only
at those points nearest to such places. I called Mr.
Stratton on the phone and pointed out that avail-
ability in Paris or Rome would be of no use since
the personnel preparing these broadcasts as well as
the transmitters used were entirely in this country.
Mr. Stratton said the Board had thought that we
were still broadcasting from London and that in
view of my report we could discuss it further.
"Subseqviently I wrote Mr. Stratton outlining
the request of the Department, namely, (1) the
German newsfile until the Paris operation was set
up and underway to take its place, (2) the south-
east-Asia file until that situation had clarified (as
to how much news was getting in through private
agencies), and (3) voice broadcasting abroad,
pointing out that all such broadcasting was done
from this country and that it would be impossible
to use AP news on some language programs and
not on others, since they all came off one file. My
letter also offered to come to New York and dis-
cuss the matter further either with him or at a
Board meeting. Mr. Stratton said that the letter
completely covered the matter and nothing further
was needed. In this letter I added a postscript
offering to pay for the service.
"Nothing more was heard until Mr. Stratton
called on the telephone and gave the AP Board's
resolution, announced publicly last IMonday".
I think the foregoing quotation from Colonel
Macy bears out my statement that the AP action
was arbitrai-y and without full knowledge of the
facts.
94
DEPARTMENT OF STATE BULLETIN
LETTER FROM ASSISTANT SECRETARY BENTON TO PRESIDENT OF BOARD OF
DIRECTORS OF ASSOCIATED PRESS ^
Jaimitry 1(>, 19 W.
Dear Mr. McLean :
I am addressing you in your capacity as Presi-
dent of the Board of Directors of the Associated
Press. I am also addressing your fellow-members
of the Board, to whom I am sending a copy of this
letier. I am further releasing this lettei' to the
press because the American people have a vital
interest in the issues involved in the AP public
statement of Monday, the 1-ith. announcing your
arbitrary decision to discontinue AP service to the
Government's international shortwave broadcast-
ing. This decision by your Board creates an
obstacle to the conduct of American foreign policy.
T^e arrangement entered into by the Office of
War Information and the OIAA with the Asso-
ciated Press was, I recognize, a temporary wartime
measure. At the time the arrangement was made
it was not possible to forecast the nature of the
crises that would follow in the wake of war; or
to appraise the volume of misinformation about
America that would exist in many areas of the
world — partly the result of Axis propaganda ; or
to foresee that shortwave broadcasting would
prove, in the aftermath of w^ar, to be an indispen-
sable medium for transmitting news to otherwise
blacked-out areas. Such responsibility iav post-
war foresight was not the job of the war agencies.
In the adjustment toward peace the Government
has enormously curtailed the volume of its over-
seas information work. However, certain aspects
will be recommended by the Department of State
to Congress for continuation. Among these is
shortwave broadcasting; this is deemed essential
to the vital interests of the American people.
The decision of the AP to discontinue its service
is based on assumptions regarding the Govern-
ment's newscasting for which there appear to be
no foundation in fact; and the action was taken
without an effort by your Board to examine the
facts. No member of your Board or top executive
staff has talked to me or given me an opportunity
to review government policy with you. There has
been no opportunity offered me to hear specific
criticisms by members of the AP, which, if they
had turned out to be justified, might have resulted
in improvements in our operating practices with-
out cancellation of the AP service. So far as I
' Released to the press Jan. 17.
know none of the AP directors has ever heard one
of our programs or read one of our scripts.
llow the National Interest Is Involved
It is critically important that the peoples of
other nations undeistand the aims and policies of
the United States, and the background of those
aims and jjolicies as they spring from our national
life. President Truman has declared that "the
nature of present day foreign relations makes it
essential for the United States to maintain in-
formational activities abroad as an integral part
of the conduct of our foreign policy."
The evidence is overwhelming that in many
parts of the world the aims and i^olicies of the
United States are not understood, or are mis-
understood. In times such as the present — and I
must remind you that while we are not at war we
are not yet at peace- — misunderstanding among
I^eojiles can prevent the advent of peace and indeed
can set the stage for new conflicts.
There are many areas of the world where news
from America, by Americans, can penetrate only
by shortwave radio. This is true, for examjale, in
several of the Balkan countries, in much of the
Near East, in parts of Southeast Asia, and in
Russia. By depriving our shoi'twave broadcast-
ing of AP news, it seems clear to me that your
decision will contribute to the misunderstanding
of America abi-oad. To the extent that it does,
it jeopardizes American interests, American se-
curity and the cause of peace itself.
The AP is thus taking upon itself the responsi-
bility for judging and hamstringing the govern-
ment's shortwave broadcasting. It is also im-
pugning the objectivity of news agencies that
continue to provide news for this broadcasting.
This reflection upon the United Press and Inter-
national News Service I regard as grossly unfair
and unwarranted. They are now under the
charge of the AP Board that, by continuing to
serve the public interest, they are reflecting upon
their own objectivity. They must be both coura-
geous and patriotic if they do not now also, in the
face of such a charge by the oldest and biggest of
the American press services, feel forced to con-
sider withdrawing their services.
Fear of Government Propaganda
The AP alleges that "government cannot engage
in newscasting without creating the fear of propa-
JAIWARY 27, 1946
95
ganda'' and tliat this would "reflect uiJoii the ob-
jectivity of tlie news services from wliicli sucli
newscasts are jjrepared". This is a clear imputa-
tion that the government is not transmitting im-
partially and objectively the news it receives from
the press associations; and that the people, the
Congress and the press of this country cannot be
trusted to police the Government's broadcasting
for the purpose of preserving its integrity. The
fact is that there is today constant pressure from
all sides on U.S. Government broadcasting to keep
it objective and impartial. The private press and
broadcasters of America, fortiuiately for them and
for the country, do not have to prove their objec-
tivity by passing before Congress for an annual
review of their policies and budget.
We are now transmitting 66 program-hours a
day, in 21 languages, over 36 shortwave trans-
mitters in the United States and over relay sta-
tions in Algiers, Germany, London, Saipan, Hono-
lulu and Manila. In the four months during
which I have been responsible for this broadcast-
ing I have not heard a single complaint about the
objectivity of the news transmitted. The only
complaint I have heard is from our diplomatic
missions abroad, and from travellers returning
from abroad, who report that there is not enough
news going to countries such as the Balkans, which
are starved for American news and can get it in
no other way.
The Role and Responsibility of the Government
We had asked that the AP continue this service.
During the next year, I hope. Congress will decide
whether shortwave broadcasting abroad should
continue to be a government function or whether
it should be a private function, or some combina-
tion of the two. It is clear that the international
broadcasting job must be done. I should person-
ally be hajDpy if the AP, in concert with other pri-
vate wire services and with private broadcasters,
offered to take over the entire operation and bear
the deficit, which will average from six to ten mil-
lion dollars a year if the job is done adequately.
I do not need to remind you that the Department
of State is pressing for news freedom everywhere
and that it is consistently fighting for freer access
to news by private news agencies and for faster,
cheaper transmission of news. A notable example
of the operation of this policy was the recent Bei'-
muda Conference. I have personally taken re-
sponsibility in the last three months for sponsoring
the allocation of additional radio frequencies to
Press Wireless, and I have been active in many
other directions in the interests of the wire services
and the American press.
Mr. Elmer Davis, in his broadcast the day after
your public statement, said, "Whether or not for-
eigners suspected the State Department of propa-
ganda before this, they will certainly suspect it
now." Mr. Davis reports that the British Broad-
casting Company and Tass, the Russian Govern-
ment news agency, get the full service of the AP
and he points out that "The AP so far has never
been afraid that its objectivity would come into
doubt because of this connection .... They
give the Russians the benefit of the doubt which
they refuse to give to the Government of their own
country."
Because of the serious nature of your charges
I ask you, in the public interest, to expose your
Board of Dii-ectors and members to the facts. I
urge upon you a full investigation conducted with
the objectivity you seek. I shoidd like to suggest
that such an investigation be put in the hands of
Mr. Wilbur Forrest, Assistant Editor of the New
York IlemJd Tribune, Mr. Ralph McGill, Editor
(if the Atlanta Constitution, and Mr. Carl Acker-
man, Dean of the School of Journalism of Colum-
bia University. These three men traveled around
the world last year as the "World Freedom of In-
formation Committee" officially representing the
American Society of Newspaper Editors. On
their return they issued a 40,000 word report.
They have background which it would take the
members of your Board much traveling and many
months to acquire. However, if these representa-
tives of the American Society of NewsjDaper Edi-
tors are unsatisfactory as investigators to your
Board of Directors, I would be perfectly happy to
have you appoint any group of publishers or any
editors in whom you have confidence to make such
a study and such a survey for the benefit of the
State Department, the Congress, your own mem-
bership and the people of the country.
My confident expectation is that such a study
will demonstrate that there is no conflict between
the interests of the AP, as judged by your Board,
and the national interest as I have outlined it.
Very sincerely yours,
William Benton
Assistant Secretary of State
Mr. Robert McLean,
Philadelphia Bidletin,
Philadelphia, Pennsylvania.
96
DEPARTMENT OF STATE BULLETIN
The Significance of the British Loan
By CLAIR WILCOX'
TODAY MANY A THOUGHTFUL MAN. eveil ill rich
America, is looking toward the future witli
profound misgivinfis. Nor is it surprising that
this is so. We live in troubled times. We have
just emerged from the most terrible war in history.
Great cities lie in ruins. Whole populations have
been uprooted. jNIillioiis of homeless men, women,
and children are facing death through slow starva-
tion. Nations around the world are torn by civil
strife. New and disturbing i)atterns of organiza-
tion are appearing on the scene. The task of re-
building a stable world order appears to be im-
possibly ditKcult. And now, more in horror than
in pride, we find ourselves jDossessed of the power
to destroy civilization itself. Many of us are
fearful that our wisdom may not be equal to our
strength. We are uncertain of the future, and,
because we are uncertain, we are apprehensive.
Now apprehension has its values. It may well
strengthen our fundamental motivation, force us
squarely to face our problems, and lead us to re-
double our etforts to set the world aright. But it
also has its dangers. If we permit our fears to
harden into pessimism, we shall resign ourselves
to an unhappy fate.
I sometimes think that the prevailing mood has
tended to obscure the very great progress that has
already been made toward the reconstruction of a
peaceful world. And that progress has been
great. Just call the roll. The United Nations
Organization has been established; the General
Assembly has met; the Security Council and the
Economic and Social Council have already been
set up. And this time the United States is not a
sisectator; it is an active participant. The United
Nations Relief and Rehabilitation Administration
is caring for millions of the needy victims of war-
fare, and our Congress has doubled our initial
contribution to its work. The Food and Agricul-
ture Organization, dedicated to the improvement
of standards of nutrition tJiroughout the world,
has established itself and held its first meeting.
'Address delivered before the City Club of Cleveland.
Ohio, on Jan. 10 and released to the jiress on the same
date. Mr. Wilcox is Director of the Office of International
Trade Policy, Deiiartnient of State.
Thirty-five nations have ratified the articles of
agreement of the International Monetary Fund
and the International Bank for Reconstruction
and Development, and these institutions will
therefore be in operation within the next few
months. Steps have been taken to set up a United
Nations Educational, Scientific and Cultural Or-
ganization and an International Civil Aviation
Organization. Our Congress has increased the
foreign lending power of the Export-Import Bank.
It has increased the authority of the President to
reduce tariffs under the provisions of the Trade
Agreements Act. Our line of policy is clear. We
;ire cooperating fully — more than that, we ai'e tak-
ing the lead — in developing the programs and
organizing the institutions through which the
nations can work together, side by side, to recon-
struct a shattered world. For so much in the way
of concrete achievement, in so short a time, there is
no precedent in history. Much has been done;
much remains to be done.
World organization for security is essential ; but
if it is to succeed it must rest upon continuous in-
ternational cooperation in economic affairs. The
stabilizatioii of currencies and the provision of
credits are necessary and desirable ; but if they are
to accomplish their purposes, they must rest, in
turn, upon measures which would remove the bar-
riers that now obstruct the movement of world
trade. We cannot long continue to lend money
unless we are prepared to give debtors an oppor-
tunity to repay their debts. If political and
economic order are to be rebuilt, we must provide,
in our trade program, the solid foundation upon
which the superstructure of international coopera-
tion is to stand.
This is the purpose of the American Proposals
for Expansion of World Trade and Employ-
ment which our Government published on Decem-
ber (), 194.5, and submitted tV)r consideration to the
American jjeople and to other governments of the
world. These proposals are based upon the convic-
tion that human energies can best be directed to-
ward the improvement of standards of living if the
world, instead of regimenting its trade, will seek to
restore the greatest possible measure of economic
JANUARY 27, 1946
97
freedom. They are designed to reverse the pre-war
trend toward economic isolationism and to resist
the present tendency to fasten the pattern of war-
time controls upon a world at peace. Their provi-
sions may be outlined in a few words.
AYe have proposed :
1. That a common code be adopted to govern
the regulation of commerce by the nations of the
world.
2. That tariffs be substantially reduced and that
preferences l^e eliminated.
o. That (juantitative restrictions — quotas and
embargoes — be limited to a few really necessary
cases and that they be administered without
discrimination.
4. That subsidies, in general, should be the sub-
ject of international discussion, and that subsidies
on exports should be confined to exceptional cases,
under general rules.
All of these proj^osals relate to the reduction or
the removal of barriers that governments have
placed in the way of private trade. In many cases,
however, governments themselves have established
public enterprises to buy and sell abroad. And in
tJie Soviet Union the Government has assumed a
complete monopoly of its foreign trade. Here we
liave proposed :
5. That governments conducting such enter-
prises should agree to give fair ti'eatment to the
commerce of all friendly states, that they should
make their purchases and sales on purely economic
grounds, that they should avoid using a monopoly
t)f imi^oi'ts to give vmdue protection to their own
l^roducers, and that governments whose enterprises
are comjjletely socialized should commit them-
sehes as to the quantities of goods which they
propose to import.
Trade has been restrained by governments. It
has also been restrained by private monopolists.
We have therefoi-e proposed :
6. That cartels and combines should be pre-
vented, by international action, from restricting
the commerce of the world.
If trade is thus to be freed from the fetters that
have bound it, we must give assurance to the many
small producers of the great primary commodities
that necessary adjustments to shifting demands
will be gradual rather than sudden and that these
producers will be protected, during the i^eriod re-
cjuired for such adjustments, against the impact of
violent change. But we must be sure that the
measures adopted to this end are temporary rather
than permanent and that they are not administered
at the expense of the consumers involved. It is
therefore proposed :
7. That action with respect to the special prob-
lem of surplus commodities, in world trade, be
international rather than national; that the solu-
tion of this problem be sought by measures that
would remove the basic causes of the difficulty, not
by measures that would perpetuate it ; and that
the solution be sought, in particular, by measures
that would expand consumption; and
8. That measures restricting exports or fixing
prices, where they are necessary, be limited in
duration; that they be attended, at every stage, by
full publicity; and that consuming countries be
given an equal voice with producing countries in
their formulation and administration.
As a means of implementing and supervising all
of these undertakings, it is proiDOsed:
9. That an International Trade Organization be
created, under the Economic and Social Council,
as an integral part of the structure of the United
Nations.
These are the proposals that relate to trade. If
they are to gain acceptance, assurance must also
be given that the nations of the world will seek,
through measures that are not inconsistent with
them, to achieve and maintain high and stable
levels of employment. For this reason, it is ]}V0-
posed, finally :
10. That each nation should agree, individually,
to take action designed to provide full and regidar
employment; that no country should attempt to
solve its domestic problems by measures that would
prevent the expansion of world trade; that no
country, in short, should be free to export its
unenqjloyment.
These proposals were not prepared in haste ; they
date back to article VII of the mutual-aid agree-
ments of February 1942 and have been actively
developed by a series of interdepartmental com-
mittees, meeting successively under the chairman-
ship of Under Secretary Acheson and Assistant
Secretary Clayton since the spring of 1943. They
are not utojjian or visionary; they have been ham-
mered out in great detail to meet the actual situa-
tion that exists in the world today. They are
distinctively American; in substance, if not in
98
DEPARTMENT OF STATE BULLETIN
detail, they embody the recommendations that
have been made by such representative bodies as
tlie Committee on International Economic Policy
of the Carnegie Endowment, the Council on For-
eign Relations, the National Planning Association,
the National Foreign Trade Council, and the Com-
mittee on Economic Development. The world that
is pictured in these j^roposals is the kind of a
world that Americans want.
This Government will ask the United Nations
Organization to call an international conference
to consider its proposals sometime during the fall
of 1946. In jDreiDaration for this conference, it
intends to go forward, in the summer, with actual
negotiations with several countries for the reduc-
tion of barriers to trade, under the provisions of
the Trade Agreements Act. Fourteen nations
have already accepted our invitation to attend this
meeting. It is our belief that these negotiations
will afford the greatest contribution that we could
make toward the success of the conference itself.
What are the prospects ? Can we persuade the
other nations of the world to go along with our
program? This question brings us to a considera-
tion of the Anglo-xVmerican economic agreements
which were announced six weeks ago. I think that
it is fair to say this: If Great Britain is able to
join hands with us in this enterprise, the prospects
will be very good indeed ; if she is unable to do so,
the prospects will be very bad. Before the war,
the British Empire accounted for a third of the
world's trade. The dollar or the pound sterling
was involved in half of the exchanges between
nations. After the war, this figure will be closer
to three fourths. The United States and Great
Britain are the mainstays of the world's economy.
Economically, there is no other nation that is any-
where nearly as important to us. It is this fact
that gives the Anglo-American understandings
their peculiar significance.
These agreements — there are three of them — are
broad in scope, and they conform to the estab-
lished pattern of American policy. They provide,
first, for the settlement of the war account. As
to materials delivered under lend-lease and reverse
lend-lease and consvnned, before V-J Day, in the
prosecution of the war, the slate is wiped clean.
Each of us had made his contribution to the com-
mon victory. We did not attempt to place a
monetary value on blood, sweat, and tears. This
time, at least, our relations with our comrades-in-
arms are not to be disturbed by an irritating con-
troversy over war debts. With respect to lend-
lease goods still in British hands, American
surpluses remaining in the British Isles, and a
multitude of individual claims, running both ways,
a balance has been struck and the resulting sum of
$t>5(),000,000 is to be paid us, with interest, over
50 years.
The second pavt of the agreements is an under-
.standing on commercial policy, in which the
United Kingdom expresses its full agreement with
the American proposals, pledges itself to partici-
pate in this summer's negotiations for the reduc-
tion of barriers to trade, and undertakes to support
the American proposals at the world conference in
the fall.
The third item, and the one that has attracted
the widest public attention, is the financial agree-
ment. Under its terms, this country would ex-
tend to the United Kingdom a line of credit of
$3,750,000,000 against which it could draw at any
time during the next 5 years. The sums actually
borrowed are to be repaid, with interest at 2
percent, beginning in 1951. The United King-
dom, however, may request the United States to
waive the collection of interest (but not of prin-
cipal), and our Government will grant the request
in any year in which dollars are practically un-
obtainable and the International Monetary Fund
certifies that British exports — visible and invis-
ible— have been running too low to enable her to
earn her pre-war volume of imports.
This, in brief, is the British loan. It is an
integral part of the pattei-n of the Anglo-Ameri-
can understandings, just as those understandings
are an integral part of the pattern of American
foreign policy. But it is unlike other peacetime
loans in its size, in its terms, and in its purposes.
And it understandably raises a number of ques-
tions in the minds of the American people. Each
of these questions requires an answer. Do they
need it? What will they do with it? Can they
repay it? What do we get out of it? Can we
atford it ? What will happen if we don't nuike it?
First., do they need it? The people of the
British Isles are peculiarly dependent upon im-
ports. They import a large part of the food they
eat. They import the raw materials that feed
their factories. Before the war, they paid for
these imports by using the interest they earned on
funds invested abroad, by selling shipping and
other services, and by exporting manufactured
goods. Then, for more than 6 years, these people
JANUARY 27, 1946
99
were at war — from the day wlien Hitler invaded
Poland to the day when Japan snrrendered — and
during most of this time they were on the firing
line. A considerable part of their standing struc-
tures and productive equipment was damaged or
destroyed. A lai'ge jjart of their merchant Heet
was lost at sea. Of necessity, they converted their
whole economy to war. They sold a major part
of their foreign invcHtments. They sacrificed
their export trade. They borrowed heavily
abroad. Now they must reconstruct, reconvert,
and develoji a volume of exports that will enable
them to pay for necessary imports and service their
foreign debts. Rnt this will take time. And in
the meantime they will need to buy more goods
abroad than they can pay for with their jjresent
capacity to export. The amount that they will
need, together with the loans that they will receive
within the Empire, to make up the difference
during the transitional period, was carefully calcu-
lated by the British and the American negotiators
to be $3,750,000,000. Yes, they need it.
What win they do ivith the money? They can-
not well use it to raise their standard of living.
For the time being, Britain will have to hold
consumption to levels of austerity little better
than those experienced during the war. They
cannot use it to socialize their industries; if the
coal mines or the railroads or the utility com-
panies are to be socialized, their owners will be
paid in pounds, not in dollars, or, more likely,
simply by trading public bonds for private shares.
They cannot use it to pay off their other creditors ;
the agreement requires that these obligations must
be met in other ways. It is the purpose of the
loan to enable the British economy to get back on
its feet. It is working capital — a seed-loan, a
grubstake, if you please. Britain will use her
new dollars to i^ay for imported foodstuffs, ma-
chinery, and raw materials. She will spend some
of them in this country, but she is free to use them
anywhere in the world. In either case, of course,
they will eventually be spent for goods produced
in the United States.
Win the loan reany be repaid? That is certainly
our expectation. Great Biitain is a good risk. She
has great assets in business reputation, productive
power, commercial skill, and strong ^^olitical and
economic ties with many countries of the world.
All that she needs is a chance to come back. The
willingness of our negotiators — headed by Mr.
Clayton and Mr. Vinson — to extend her a loan was
a profession of their faith in her ultimate solvency.
It should be recognized that the circumstances
surrounding this transaction are entirely different
from those that accompanied the debts arising from
the first World War. Let me state the differences :
1. Last time, reparations from Germany were
payable in cash and our debtors relied upon their
share of reparations to get a large part of the
money to pay us. AVhen Germany defaulted, they
lost the funds on which they had relied. This
time, reparations are payable in kind and no one
relies on them for money to pay debts.
2. The last war's debts, in the main, represented
goods destroyed in battle. They created no new
wealth and no new earning jDower. This time, we
are not trying to collect for dead horses or smashed
tanks. This loan is for new goods. It will finance
the production of new wealth. Like any good com-
mercial loan, it will create the means of its own
payment.
3. Last time, we lacked effective international
arrangements to stabilize foreign exchange. Each
country acted independently. Exchange rates were
sometimes too rigid and at other times chaotic.
This time, we start out with the International
Monetary Fund. The exchange value of each cur-
rency will be set in agreement with the Fund and
will be protected until changed by like agreement.
Instead of rigidity, followed by break-clown and
chaotic rates, we shall have an institution well
designed to maintain a workable stability.
4. Last time, the debt -funding agreements car-
ried a rigid annual interest charge and made no
provision for the difHculties that might well arise.
When Germany defaulted and the great depres-
sion struck, the result was the Hoover moratorium.
This time, the agreement itself provides for the
waiver of interest when stated circumstances would
make its payment impossible. It thus avoids the
accumulation of unpaid obligations and substitutes
a reasonable flexibility to meet conditions yet
unknown.
5. And this is most important. Last time, we
raised our tariffs— in 1921, in 1922, and again in
1930 — thus denying our debtors an opportunity to
earn the funds with which to pay us. This time,
we start with the Trade Agreements Act in force,
with our proposals for the reduction of trade bar-
riers published to the world, and with conferences
to act on these proposals projected for the summer
and the fall. This time we intend to let our debtors
earn the funds with which to pay us. We have
100
DEPARTMENT OF STATE BULLETIN
come to recognize our creditor position and to
adopt the commercial policy which that position
requires. We have demonstrated, at last, that we
can learn from history.
The real question on the rei)ayment of this loan
and other foreign loans is whether the world is
going to be prosperous and foreign trade large. If
our hopes for the expansion of world trade and
employment are realized, the service on this loan
will be manageable. If they are not. and if there
is another great depression, much greater values
will be lost than the repayments on this loan. Of
course there is a risk. But the stakes are very great.
To them I now turn.
What do loe get out of thh transaction? This
is a fair question and it deserves a candid answer.
1. In addition to the $3,750,000,000 in principal,
we get $'2,200,000,000 in interest, if the whole
credit is used and none of the interest is waived.
2. We get participation by Britain in the Inter-
national Monetary Fund and a consequent com-
mitment that she will not take independent action
to put our exporters at a competitive disadvantage
by depreciating the pound.
;>. We get her agreement, when the loan is made,
immediately to remove exchange controls on day-
to-day transaction'?; between our two countries, so
that Americans who sell to the United Kingdom
will then be able to obtain their pay in any cur-
rency they choose.
4. We get her promise, within the following
year, to remove exchange controls on day-to-day
transactions with other countries, making sterling
freely convertible into dollars or other currencies,
so that foreign businessmen who sell in England
will no longer have to buy there but can buy in
America if they choose.
5. We get her pledge to settle her debts within
the Empire by getting them scaled down, refunded,
and I'epaid, and as she pays them to make the
pounds she pays convertible into other currencies,
so that her creditors can use them, if they wish,
to buy American goods.
6. We get her agreement, by the end of 194fi, so
to administer her import quotas that they do not
discriminate against the United States, thus giving
the American exporter, who sells for scarce dol-
lars, an equal oijportunity in the British market
with exporters who sell for more plentiful cur-
rencies.
7. We get Britain's promise to work with us,
this summer, toward the reduction of tariffs and
the elimination of preferences. Specifically, it
is agreed that her existing commitments to Empire
countries are not to stand in the way of this pro-
gram. And it is further agreed that every cut in
taritis, within the Empire, will cut the margin of
imperial preference by the same amount. This,
again, will enable American businessmen to enter
Empire markets more nearly on a basis of com-
petitive equality.
8. We get British support for the American
trade program. And this is not a socialist or an
imperialist program; it is a liberal program. In
short we have obtained Britain's pledge that her
foreign economic policy will henceforth be devoted
to restoring an international order that is favor-
able to the preservation and expansion of private
enterprise.
All of these matters are directly related to the
loan. They are commitments that Britain is en-
abled to make by virtue of the loan. They are
commitments that she could not make if she didn't
get the loan. Our negotiators did not seek con-
cessions that would have been extraneous to the
loan, concessions that would have challenged Brit-
ish sovereignty and affronted British pride. These
agreements are economic, not political. It would
have been unwise for us to attempt to push our
bargaining power farther than it would go. It
cannot be said with sufficient emphasis that the
American peojjle want the economic freedom and
the trade expansion that are involved in this loan
fully as much as the British people want them.
In shoi't, we are getting plenty.
Can we afford if ? If this $";5,750,000,000 were an
outright grant, it Mould increase our national debt
by a little more than one percent. If the war had
gone on for two more weeks, we would have spent
this sum without a momenfs hesitation, without
a second's thought. But this is not an expendi-
ture; it is an investment. The cost to us will not
be $3,750,000,000. but the difference between the
interest we ijay our people and the interest we col-
lect from overseas — for the rest of the century no
more, perhaps, than a quarter of a billion dollars.
This does not seem an excessive sum to invest in
our hopes for private enterprise and expanding
trade. We are investing in Britain, yes. But.
more than this, we are investing in our own future.
Can we afford not to make the Joan? What
would haj^pen if we didn't make it? Britain
(Continued on page 113)
J4MV4RY 27, 1946
101
Last Remnants of National Socialist Ideology
By ASSISTANT SECRETARY BRADEN ^
I want to talk to you, with so imicli frankness
as ciirunistances allow, of the problem with which
1 am principally occupied these days. I refer to
the ijersistence into the post-war period, whether
overt or covert, of the ideology and the methods
identified with what we call "National Socialism".
Our future — the future of all of us, of the world,
of our civilization — depends on whether we have
the intelligence and determination to meet this
problem squarely and deal with it effectively.
The prime fact I wish to set before you is that
tlie attainment of complete military victory over
the armed forces of the Axis has not of itself wiped
out the sinister ideology that they represented and
that their partners, satellites, and successors con-
tinue to represent. The Hydra still has some
heads left, and will grow more if we allow our-
selves now, in the hour of military victory, to
relax our vigilance and our purpose. We have
won the greatest battle, but we could still lose the
war. We have not yet achieved peace, and there
will be no peace for us short of final victory. It
is true that many of the principal Axis criminals
are dead or in our hands, that the great industrial
war-machine that served their purpose lias been
smashed. But the ideology of National Socialism
is not yet dead. In the hour of Germany's defeat,
in the hour of Japan's collapse, we find it flourish-
ing still in the midst of our international commu-
nity, ready for the day when, if we allow it to do so,
it will become resurgent.
In an address before the German workers in tlie
Rheinmetall-Borsig factory on December 10, 1940
Hitler declared that the world was divided into
two irreconcilable parts — the democratic world
and the National Socialist world — and that be-
tween them it was war to the death. To this he
added : "I grant that one must succumb." That
affirmation was true in 1940 and is still true today.
There can be no compromise and no reconciliation
between democracy and Fascist totalitarianism. In
a world as small as ours, democracy dare not, must
not disregard Fascist totalitarianism, wherever it
may show itself, let alone do business with it. For
we who are dedicated to and represent the ideal
of democracy must face the fact that Fascism,
680860—46 3
wherever it is allowed to thrive, is like a gun
pointed at our head.
There are some who say that it is no proper con-
cern of ours if an armed gang seizes power in a
foreign country, destroys its civil liberties, denies
human rights, and regiments the people. They
stand on the book qf diplomatic etiquette; or they
jjoint to imperfections in our own democratic
practice; or they scoff at the notion of any danger
to us. Such persons, wishfully disregarding the
plain and terrible lesson that has been adminis-
tered to the world in the pa.st decade, completely
misunderstand the nature of the National Socialist
ideology.
It is not only that Fascism and democracy are
irreconcilable. Fascism and jseace are irrecon-
cilable. Masses of people do not consent to .sur-
render their liberties to a Fascist government
because they love slavery, or because they are
powerless. The Fascist band, appealing to the
evil passions and prejudices of some, and taking
advantage of a carefully cultivated intellectual
confusion among others, obtains their consent by
persuading them that they are menaced from
abroad, or by tempting them with the joromise of
foreign loot. The threat of war, the incitation to
war, and the practice of war form the basic pattern
of action through which a Fascist government
perpetuates itself. It is no coincidence that when-
ever a Fascist government comes into power it
innnediately embarks on a progi-am of expanding
the nation's military establishment. That is just
as true in the Americas today as we have seen it
to be in Europe. Some 18 months ago, one of
Hitler's and Goebbels' imitators in this hemisphere
stated his belief that "war is an inevitable social
phenomenon" and that into its i^reparation must
go "every inhabitant, all their energies, all
their wealth, all their industries and produc-
tion, all their means of transport and com-
munication, . . . the armed forces being
merely . . . the fighting instrument of that
great whole which is 'the nation in arms' ".
This invocation of war by Fascist governments
' All atldre.ss ilelivei'ed before the I'liiversity Clnb In New
York, N. Y., on Jan. 19, 1940, and released to the press on
the same date.
102
DEPARTMENT OF STATE BULLETIN
as an excuse for the imposition of domestic tyranny
has been so abundantly demonstrated in our times
that it is unnecessary to cite examples. We may,
however, recall certain circumstances and events,
not without their irony, in which this was demon-
strated to us in our own hemisphere and almost in
the hour of our military victory over the Axis.
The case involves a government that, in common
honesty, no one could call anything but Fascist,
and typically Fascist, unless he chose to believe
its verbal professions and to disregard its activi-
ties and the whole pattern of its behavior. You
will not forget the many times that Adolf Hitler
appeared in public, placed his hand over his heart,
and swore that no man was more devoted to the
cause of humanity and freedom and more deter-
mined to keep the peace than he. When this gov-
ernment to which I am referring, under heavy
moral pressure fi'om public opinion at home and
in the other American republics, finally made the
gesture of declaring war on the Axis powers, it
used that declaration of war, pharisaical though it
was, as an excuse for decrees that further restricted
and obliterated the liberties of the people and
were applied with special rigor, in actual practice,
against the democratic element that .supported
most actively the war aims of the United Nations.
Persons distinguished for their devotion to those
aims were arrested wholesale without any charge
whatsoever to this day being brought against
them. A declaration of war, even a declaration
of war against Fascism, provided an excuse for
apprehending, and frequently torturing, those
elements which, because they were genuinely anti-
Fascist, constituted an implicit threat to that dic-
tatorial military government.
What are these Fascist governments, with their
outward pomp and circumstance and their in-
ward degradation, but "whited sepulchres . . .
full of dead men's bones, and of all uncleanness" ?
It is their moral weakness more than their physical
strength that makes them dangerous to other na-
tions. When a small group of armed men impose
a tyranny of oppression over millions of people
who in their hearts love freedom, the very govern-
ment that they establish is likely at any moment
to prove their deathtrap. They are encircled by
inextinguishable forces that may be temporarily
latent but that will in the end surely overpower
and destroy them. Such a regime is not a strong
govermneut, for all its chest-thumping, but a
miserably weak government. It is out of craven
fear of its own people that it piles on restrictions
and resorts to ever greater brutalities against them.
It is craven fear that drives it eventually to resort
to the desperate distraction of international quar-
relsomeness. There was a day when the dictators
pointed with scorn at what they conceived to be
the weakness and impotence of our democratic
system of government. But, when the United
States found itself actively at war and locked in
the death-struggle abi'oad, its Government did not
feel compelled to impose a state of siege at home,
or to imprison the jaolitical opjjosition, or to for-
bid public criticism. When the test came, our
system of government proved its i-eal strength,
which lay in the devotion of the people it repre-
sented. And the United States, under its demo-
cratic system of government, is in no degree a
threat to any other nation on the face of the earth,
for all the vast power that it has at its command.
Now a Fascist government anywhere is a stand-
ing menace to world peace and therefore to our
security. But the existence of a Fa.scist govern-
ment menaces most immediately those who are its
closest neighbors. We American republics, because
of our common aspirations, our similar histories,
aiul our geographical proj^inquity, have estab-
lished ourselves as a comnuinity of neighbors.
When a Fascist government arises within that com-
nuinity, the danger and the evil have an immediacy
that we and the other American republics cannot
jjossibly afford for one moment to disregard. This
sickness threatens all of us.
Despite some assertions I have heard to the con-
trary, there is nothing in the book of diplomatic
etiquette that requires us to embrace the enemies
of our way of life. Etiquette is what we practice
with our friends, with those we respect. Neither
can we maintain that the persistence of an ideology
which can realize itself only in war is none of our
business. In a world as interdeijendent as oui's, we
certainly could not, if we would, disregard a na-
tion that has become afflicted with a Fascist gov-
ernment. A thousand daily circumstances — eco-
nomic or political — throw us into association with
it. What are we to do then? Shall we demon-
strate a pretended or spurious friendship that
would encourage and support its government in
the denial of everything we hold dear? Or shall
we be honest with ourselves and with the world?
I submit to you that the sacrifice made by so many
million Americans, who gave up the comforts of
home and all considerations of personal security
JANUARY 27, 1946
103
to fight the forces of Fascism abroad, gives us the
answer. This country would not be true to its
own ho2:)es of peace, to its owu traditions and prin-
ciples, or to its dead on the battlefields of the world,
if it did not point the finger of accusation at those
governments that still serve the ideology of Na-
tional Socialism, employing its methods against
their own people and eventually— if only by de-
liberate contagion — against their neighbors. Ac-
cusation is not intervention. It is what a nation
owes, under such circumstances, to its own integ-
rity as well as its own security.
The only alternative is to sink into the passivity
that, in the recent past, has cost us all so heavily.
How many statesmen of the last two decades, if
they were given another chance, would again stand
aside and watch with folded arms while National
Socialism rose and spread, from its small begin-
nings in a Munich beer-hall, to become the raging
inferno that engulfed the world? How many
would again make the concessions of the era of
appeasement in the hope of thus pmxhasing peace ?
A repetition of the timorousness and blind com-
placency that were once theirs is unthinkable, in
the light of that experience.
There is another aspect to this matter. The
exponents of Nazi ideology, when it is to their
advantage, do not hesitate to pay a disingenuous
lip-service to democracy. Within the year, the
representative of an American rejaublic stated offi-
cially, at a meeting of the Governing Board of the
Pan American Union, that his government is deter-
mined to preserve "the democratic principles that
constitute a common aspiration of the nations of
this continent". But what is one to think of that
government when it maintains a "state of siege"
under which basic democratic rights are denied to
the people it is supposed to represent; under which
men speak their minds at their peril ; under which
organized hoodlums can physically attack defense-
less people in the streets — women and children for
their political beliefs or because of their race —
while the police look on with folded arms or arrest,
not the assailants, but their victims ; under which it
can disregard constitutional guaranties and prac-
tice any kind of fraud it wishes on the peoj^le ?
One way in which National Socialism pays lip-
service to democracy is in Its pseudo-concern for
the laboring masses, enlisting their support, to
their own later ruin, with bx-ead and circuses,
organizing tliem into government-controlled
unions that are simply instruments of slavery. As
the New Yoi'k Times put it in an editorial on
Tuesday of this week, "Who serves a dictator soon
becomes a slave".
When I say that National Socialism sometimes
pays lip-service to democracy, using its machinery
and even indulging in what a^apear to be free elec-
tions, I do so with the authority, such as it is, of
National Socialism itself. In a lecture on "The
Nature and Form of National Socialism", deliv-
eied in 1934, Herr Doktor Goebbels said :
"We have openly declared that we made use of
democratic means only to gain power, and that
after the seizure of power we would ruthlessly
deny to our opponents all those means they had
granted to us during the time of our ojJi^osition".
As early as 1928 this same Goebbels had written,
in his paper Ber Angriff :
"We enter Parliament in order to supply our-
selves, in the storehouse of democracy, with its own
weapons. ... If democracy is so stupid as to
give us free tickets and salaries for this bear's
work, that is its affair. . . ."
My conclusion is simple, and I offer it to you
bluntly. Economic and political situations can-
not be contained, either in their causes or their
effects, by boundaries on a map. We were and are
opposed to the ideology to which the peoples of
Germany and Japan lent themselves. We could
not compromi.se, we could not afford to compromise
with that ideology. We renuiin opposed to that
ideology todaj^ as during the recent period of ac-
tive hostilities. Our j^olicy toward the American
republics continues just as devotedly as ever to be
that of the good neighbor. It is based on mutual
respect between self-respecting nations. But it
would be the grossest perversion to pretend that it
requires us to respect Fascism, in any of its guises,
anywhere, at any time. We are determined that
no complacency on our part shall allow a new
growth of Fascism in this hemisphere. To do so
would be foolhardy, jjerhaps suicidal. To com-
promise with Fascism now, and that within the
confines of this hemisphere, would be to leave the
field before the battle is won. Our security and
that of our neighbors require that all of us fight on
to the finish. Our self-respect and the respect of
others, to which we aspire, demand that we reso-
lutely carry on to the complete victory which will
erase from this New World every remaining ves-
tige of the National Socialist ideology. Not until
then will we be safe.
104
DEPARTMENT OF STATE BULLETIN
Korea and the Far East
RADIO BROADCAST
Participants
John Carter Vincent
Director, Office of Far Eastern Affairs
Edwin M. Martin
Chief, Division of Japanese and Korean
Economic Affairs
Col. Brainard E. Prescott
Civil Affairs Division, War Department;
former Civil Administrator of the U.S.
Zone in Korea
Sterling Fisher
Director, NBC University of the Air
Announcer : Here are Headlines From Wmh-
ington:
John Carter Vincent Sees Moscow Agreement on
Korea as Affording Test for Soviet-American
Cooperation and as Pattern for Developing
Peoples Toward Self-Government and Inde-
pendence.
Edwin Martin of State Deisartnient Asserts Ques-
tion of Nationalizing Korean Industry Will
Be Left Strictly for the Koreans To Decide.
Colonel Prescott, Former Civil Administrator of
Korea, Says Division of Korea into Zones Has
Disrupted Its Economic Life; Says United
States Is Striving To Achieve Quick Unifi-
cation.
This is the sixth in a group of State Department
programs, broadcast by the NBC University of the
Air as part of a larger series entitled "Our
Foreign Policy". This time the subject is
"Korea and the ¥&v East". The participants are :
^Ir. John Carter Vincent, Director of the Ofiice of
Far Eastern Affairs, and Mr. Edwin M. Martin,
Chief of the Division of Japanese and Korean
Economic Affairs, both of the State Department;
and Col. Brainard E. Prescott, who recently re-
turned from Korea and is now on temporary duty
in the Civil Affairs Division of the War Depart-
ment. Sterling Fisher, Director of the NBC
University of the Air, will serve as chairman of
the discussion. Mr. Fisher —
' Released to the pre.ss Jan. 10.
Fisher: Mr. Vincent, we're especially glad to
welcome you back to our microphone. I remem-
ber our last session here, in which you forecast the
abolition of National Shinto and other policies
which have subsequently been aj^plied in our
occupation of Japan. Since then, the question of
what to do about Korea has been the subject of a
good deal of discussion in the press and on the
radio. But a good many people are a little con-
fused about Korea. Mr. Vincent, you might start
by telling us just why the Korean question is
important.
Vincent: To go back a little. Mr. Fisher, for
35 years Korea has been an unwilling part of the
Japane.se Empire. In tlie decades before and
after 1900 Korea was a source of friction in inter-
national relations in the Far East. At Cairo
President Roosevelt. Premier Churchill, and
Generalissimo Chiang Kai-shek promi.sed inde-
pendence to Korea, and the Soviet Union in adher-
ing to the Potsdam Declaration is also committed
to independence for Korea. These four powers
are determined to carry out their commitment and
to see to it that Korea has a stable democratic
government, strong enough to stand on its own
feet. Korea must not become an international
political football.
Fisher : I suppose the agreement at Moscow
regarding Korea was drawn up with these objec-
tives in mind.
Vincent: Yes, and that agreement affords an
auspicious test for Soviet-American cooperation
in the Far East. Furthermore, the solution of
Korea's immediate economic i)roblem is of the
utmost importance. Mr. Martin here can tell you
about that.
Fisher: All right, Mr. Martin — what about the
economic importance of Korea ?
M.vRiiN ; Well. Mr. Fisher, Korea is important
as a crossroads of international commerce. Be-
cause of the Japanese control of Manchuria, rail
lines have been built so that many Manchurian
exports can best be shipped out through Korean
ports. Then too. shijunents to and from Siberia
can be diverted to north Korean ports when it is
JANUARY 27, 1946
105
diffioiilt to keep the 2^oi-t of Vladivostok free of
ice in mid-winter.
Fisiiek: So Korea is economically important to
China, Japan, and the Soviet Union. But, Mr.
Martin, as Bill Johnson of Sioux City, Iowa,
mifiht say, what's that got to do with the price of
fish here in the United States?
Martin : Korea won't have much of a direct
effect on our economy, Mr. Fisher, although we
did have a very extensive commerce with her be-
fore the Japanese moved in, 40 years or so ago.
But if we can settle the Korean question quickly
and fairly, through the cooperation of the great
powers, it will remove a potential trouble-spot and
contribute greatly to the peace of Asia. And that
might mean a lot to Bill Johnson, because a peace-
ful Asia is essential to the increased world trade
that will mean more jobs for Americans.
Vincent: And then we might add that the
Koreans have a great cultural heritage. They
are a very peaceful people — which is one reason
they were an easy prey to Japan back in 1905.
Fisiieh: But, Mr. Vincent, isn't their civiliza-
tion largely Japanese after all these years of occu-
pation?
Vincent: No. Throughout the decades of Jap-
anese control the Koreans kept their cultural in-
tegrity. They are individualists, you know, and
they have great pride in their past achievements.
Why, from the year 25 a.d. up to the sixth century
the Koreans were sending cultural missions to
Japan to try to teach the Japanese to read the
Chinese classics, build proper houses, and wear
woven textiles.
^ Fisher : That's one for Ripley — a "believe it or
not".
Vincent: Well, here's some more for Ripley.
The Koreans were the first Far Eastern people
to use a phonetic alphabet, and the first in the world
to invcHt a printing j^ress with movable type. That
was in 1403 — about 50 years before Gutenberg made
a parallel invention in Europe. Koreans built the
world's first astronomical observatory in fi40 a.d.,
and in 1596-97 they defeated an invading force led
by the Japanese shogun, Hideyoshi. by using the
first iron-clad warships in the world.
Fisher : Colonel Prescott, after putting in three
months or so as Civil Administrator of Korea,
what do you say about Japanese influence there?
Prescott: The Japanese tried their best to Nip-
ponize Korea, Mr. Fisher, but they failed. They
taught only the Japanese language in the schools
for many years and deluged the people with Jap-
anese ijrojjaganda. But the people remained
Korean through and through. We found a uni-
versal hatred of the Japanese. Even the Koreans
who had pi'ospered under Japanese domination
gave only lip-service to their masters.
P'isHERS How do you account for that. Colonel ?
Prescott : By their long tradition of independ-
ence, and by the fact that the Japanese defeated
their own purpo.ses by their cruel treatment of
Korean patriots.
Martin : And then, of course, there was the
economic exploitation of the Koreans.
Fisher: I suiipose you mean, Mr. Martin, that
the Japanese siphoned off most of Korea's produc-
tion to Japan?
Martin : Yes. Everything they did in Korea
was for the benefit of the Japanese, and the Ko-
reans knew it. They were abused and impover-
ished by the Japanese.
Fisher: Colonel Prescott, what did you find
when you first landed in Korea? But fir.st, you
might tell us how you happened to be named Civil
Administrator there. Had you ever been in Korea
before ?
Prescott: No, not until September 6, 1945 — the
day we landed there. I was a lawyer in East
Aurora, New York — just outside of Buffalo — when
I was called to active service in September 1940
with an infantry division. Later I taught at the
General Staff School in Fort Leavenworth, one of
the subjects being military government. When
the Tenth Army was formed for the Okinawa
show I was assigned to it, later becoming the xVct-
ing G-1 for the operation. Among other things,
I was concerned with military government. Sub-
sequently, I was detailed as Civil Administrator
in Korea.
Fisher: I suppose you got a royal welcome
when you landed in Korea?
Prescott: We certainly did, Mr. Fisher. As
soon as the preliminary arrangements for the sur-
render had been made at Inchon, where we landed,
I was ordered by General Hodge, the commander
of the Korean occupation forces, to proceed to
Seoul, the Korean capital. There my party """as
to meet a small advance party who had come in
by air. It was a 25-mile drive from Inchon to
Seoul. General Hodge had notified the people
that there were to be no demonstrations.
Fisher : Why was that ?
706
DEPARTMENT OF STATE BULLETIN
Prescott: Well, you must remember that the
Japanese sun-ender came very quickly. Japan
had a full-scale army in Korea, and witli the ship-
ping available to us it was possible to mount only
one division of American troops. So we weren't
sure what kind of a reception we would get. Gen-
eral Hodge was particularly anxious not to give
the Japanese any excuse for shedding Korean
blood, and, due to his foresight, not one Korean or
American life was lost in the operation.
Fisher: Did the Koreans, then, follow his in-
structions to the letter?
Prescott : That was really too nmch to ask, after
40 years of Japanese occupation. The roads were
lined with people who had been waiting all day
to see our party of Americans drive by. They
shouted and clapped, but didn't stage any wild
demonstrations. What tliey did do was to take
a holiday from work to celebrate — and it took some
days to persuade them to return to their jobs.
P^isher: Colonel Prescott, just how did you go
about taking over the Korean Government?
Prescott : Well, Mr. Fisher, as you know Korea
had an essentially colonial government inider
Japan, with all the departments and bureaus
headed by Japanese.
Fisher : I remember there was some criticism
last fall about your retaining some of these Japa-
ne.se officials.
Prescott : We had to keep them long enough to
get the information we needed before we could
send them back to Japan. They had done a great
deal of looting between August G, when Hiroshima
was atomized and tliey knew surrender was inevi-
table, and when we landed four weeks later. By
holding them, we recovered a lot of government
funds — in fact, we saved millions of yen for the
Korean people. And we also got some valuable
information on the governmental set-up.
Fisher: After that, I suppose you sent them
packing to Japan.
Prescott: Yes, as soon as we could replace the
bureau heads and other top officials with American
military-government officers, we got rid of them.
Fisher : Couldn't you find Koreans to take over?
Prescott : AVe found very few Koreans who were
trained in administration. The Japanese saw to
that. As fast as we could, we dismissed al? Japa-
nese from the government, and wherever possible
we have replaced them by qualified Koreans. We
still have very few Koreans in top posts, but the
number is increasing.
Vincent: Our policy, of course, is to bring
Koreans into responsible jobs as rapidly as possi-
ble. But it can't be done overnight.
Fisher : I suppose, Mr. Vincent, that Americans
will have to fill the breach.
Vincent : Yes. they will — but not only Amei'i-
cans. We hope that experienced administrators
and technicians of other nationalities may also be
brought in.
Fisher : Colonel Prescott, did you have any
trouble keeping order while you were evacuating
the Japanese?
Prescott: None at all. The evacuation has
gone off without trouble. That was quite a record
considering that we are moving all the Japanese
out of Korea. There were 180,000 Japanese troops
and over half a million civilians there when we
came in. Practically all the troops and over 90
percent of the civilians have been evacuated.
Fisher : And in what condition did you find the
Korean economy?
Prescott: I took an extensive trip through the
country in late November. I went mostly by rail,
and found the railway system operating faii'ly
efficiently, although it was short of coal and
equipment and in bad repair. The Korean people
are not suffering too severely from the effects of
the war. The fishing fleets are back in operation
from the southern ports, and we are reopening
icing plants as fast as possible to preserve the fish,
as well as drying and salting plants. We found
the Korean farmers harvesting a bumper rice
crop — for the first time in their recent history they
have enough rice. The problem is one of getting
it distributed.
Fisher: Mr. Martin, in view of the food short-
age in Japan, will any of that rice be used to pre-
vent acute hunger among the Japanese ?
Martin : No, Mr. Fisher — we have no intention
of depriving the Koreans of their rice to help
Japan. The Japanese have done that for long
enough. If anything, the shoe will be on the other
foot now — we may arrange to get some industrial
equipment from Japan, and ship it to Korea.
Fisher: AVhat kind of industrial equipment?
Martin: Well, Korea has plenty of tungsten,
and she makes electric-light bulbs. But she gets
the wire for the filament from Japan. We think
Korea sliould liave her own equipment for making
JANUARY 21, 1946
107
filaments, to end this sort of dependence on Japan.
That's one example. We want Korea to have a
healthy economy, so she will be able to stand on
her own feet.
FisiiEH : Colonel Prescott, what abont the divi-
sion of the country into Soviet and American zones
of occupation ?• What eli'ect has that had i
Pkescott: a very great effect. Korea can't be
cut in two by an artificial boundary at the 38th
jjarallel and survive. One half is too much depend-
ent on the other half. The original purpose of the
division was to facilitate the disarming of the Jap-
anese. Now, the big centers of population are in
the American zone, which has about 17 million
population compared to only about 6 or 7 million
in the Soviet zone. The factories in our zone need
coal from the north before they can resume
operations.
Martin : You see, there are only a few coal
mines in all of southern Korea, and they produce
only low-grade coal in small amounts.
Prescott: We've brought in a little coal fronr
Japan to Korea, of course, Mr. Martin, but nowhere
near enough. Such coal as we have is conserved
for essential industry. The railroads have first
priority.
Fisher : But, Colonel Prescott, haven't you been
able to work out these problems with the Russians
on the spot ?
Prescott: Unfortunately, no, Mr. Fisher. Gen-
eral Hodge attempted to establish satisfactory liai-
son with the Soviet command on several occasions,
but without success. That's one reason why the
Moscow agreement on Korea is so important — it
paves the way for the economic unification of
Korea, so we can establish free movement of goods
and people between the two occupation zones.
Fisher: Mr. Vincent, you went to Moscow with
Secretary of State Byrnes — can you give us the
story on the Moscow agreement on Korea?
Vincent: Well, Mr. Fisher, the basic draft of
the agreement was submitted by the Russians — but
the encouraging thing was that their draft went
far toward meeting our viewpoint. We proposed
a few amendments which were found acceptable
by the Soviet and British representatives.
Fisher: Can you summarize the terms of the
agreement for us ?
Vincent: Yes. It provides for the creation of
a Joint American-Soviet Commission which, in
consultation with Korean democratic parties and
social organizations, shall make recommendations
with regard to the formation of a Korean provi-
sional democratic government. These recom-
mendations will be submitted for the consideration
of the Governments of China, Great Britain, the
Soviet Union, and the United States and for final
approval by the latter two. It will then be the
task of the Joint Commission, with the participa-
tion of the newly created provisional government,
to work out measures for the achievement of dem-
ocratic self-government and Korean independence.
The agreement also provides for a conference of
the Soviet and American military commands to
tackle the inunediate economic and administrative
problems we have been discussing. This confer-
ence has been in progress in Seoul since January 15.
Fisher: But, Mr. Vincent, what about the
question of trusteeship for Korea?
Vincent: I was coming to that. The agree-
ment also provides that the Joint Commission,
after consultation with the provisional Korean
government, shall submit proposals to the four
Governments I have mentioned concerning a trus-
teeship, as a possible interim measure to assist in
the achievement of complete independence.
Fisher: I remember Sumner Welles said this
was the most significant thing about the Moscow
agreement — it establishes for the fii-st time the
basis for an international trusteeship. But I have
also read that the trusteeship proposal was severely
ci'iticized by the Koreans themselves. Mr. Vin-
cent, didn't they stage some demonstrations
against trusteeship and in favor of immediate
independence?
Vincent: Yes, they naturally want their inde-
pendence as soon as possible. Also, I am told that
first reports of the Moscow agreement to reach
Korea were incomplete and garbled. Secretary
Byrnes pointed out in his radio address of Decem-
ber 30 that "The Joint Soviet- American Commis-
sion, working with the Korean provisional demo-
cratic government, may find it possible to dispense
with a trusteeship".^
Fisher : But have the Russians given any indi-
cation of their stand ? Do they agree that a trus-
teeship maj' be dispensed with?
Vincent : As I have said, the Russians drafted
the original text of the agreement, the clear im-
plications of which are that self-government and
' Bulletin of Dec. 30, 1945, p. 1034.
108
DEPARTMENT OF STATE BULLETIN
independence are the goal, and that trusteeship is
only a procedure, which may or may not be neces-
sary.
Fisher: How, then, would you summarize the
United States position ?
Vincent : We have one olijective only in Korea —
to bring about self-government and independence
at the earliest possible moment. The Moscow con-
ference demonstrated that this was also the desire
of the Soviet Union and Great Britain. Whether
or not there is to be a trusteeship for Korea de-
pends on the ability of the Koreans to get together
with the Joint Commission in forming a demo-
cratic [irovisional govermnent capable of unifying
and a<lministeriug Korea. I am sjjeaking here of
an entirely new provisional govermnent, repre-
senting all major gioups. not of the so-called ''pro-
visional govermnent" in exile, members of which,
as individuals, have recently returned to Korea
from Chungking. If a provisional government
finds itself /lof equal to the task of giving Korea
an efficient, unified administration, then a four-
power trusteeship under the United Nations will
probably be recommenc|ed by the Joint Commis-
sion.
Fisher : How long would such a trusteeship last?
Vincent: If we set up a trusteeship, it would
pi-obably last for the full five-year period provided
for in the agreement. If it's necessary at all, I
believe it will be necessary for that length of time.
Fisher: In your opinion, Mr. Vincent, is there
much probability that a provisional government
will be able to achieve a unified set-up strong
enf)Ugh to stand on its own legs?
Vincent: I am an ojitimist, Mr. Fisher, l)ut nut
a prophet. Some progress is being made toward
unification. Colonel Prescott can tell you about
Korean politics and the chaotic state it was in
when he arrived.
Prescott : We found a large number of political
parties when we came in — over 90, many of them
local groups. One grouj), the People's Republic,
had taken over local administi-ation by force of
arms in some places.
Fisher: How does the situation shajie up now?
Prescott: It has shaken down somewhat, as
Mr. Vincent has indicated. The smaller parties
have merged into five main groups, the largest of
which are — the Democratic Party, which is sup-
jjorted by various classes, including businessmen,
landowners, and tenant farmers; the People's Re-
public, whicli advocates drastic economic leforms
and is sui:)ported, though not dominated, by the
Communists; and the People's Party, which is also
leftish in tendency.
Fisher : While we are on the subject of political
jjarties, Colonel Prescott, there have been some
charges in the American press that our militarj'
government in Korea has supported the conserva-
tives— the Democratic Party.
Prescott : On the contrary. General Hodge con-
sulted with political leaders from all the pai'ties.
Our policy is not to mix in Korean politics, but to
try to get outstanding men from all parties to take
i-esponsible positions in the government. We
found capable men in all groups. In several cities
where representatives of the "People's Republic"
had taken over local administration, we found
them operating efficiently and left them in office.
Our only concern is to see a Korean government
which is truly rejjresentative of the Korean
people.
Fisher: Well, if that policy is followed, there
should be little basis for criticism. Now. Mr. Vin-
cent, you were speaking of the trusteeship angle
of the agreement — just what would be the
alternative to trusteeship?
Vincent: If the Koreans do get together and
there is no trusteeship, the Soviet-American Com-
mission will probably continue in existence for
some time; that is, until the provisional govern-
ment is well established and free elections are held
to provide for the formation of a democratic gov-
ernment representative of the will of the Korean
])eoi)le. It may also be advisable for the Joint
Connnission to assist in drawing up a draft con-
stitution for submission to the Korean people in
advance of national elections. It is hoped, how-
ever, that in this interim period, the demonstrated
ability of the provisional government will make it
possible for the Connnission to place an increasing
amount of responsibility on the Koreans. Inci-
dentally, we exjject to see the Joint Commission
become more and more a civilian organization as
time goes on. Furthermore, it is hoped that con-
ditions w^ll permit the withdrawal of Soviet and
American troops from Korea in the not too distant
future.
Fisher : Mr. Vincent, has our top representative
on the Joint Commission been designated yet ?
Vincent: No, but he should be a high-ranking
American, whose ability is universally recognized.
JANUARY 27, 1946
109
Fisher: Mr. Martin, what do you think about
the trusteeship question from the economic point
of view?
Mautin : I can see certain dangers in it, Mr.
Fislier. When we come to withdraw from Korea
inider the terms of the trusteeship, it may create
a sharp break. On the other hand, if we turn every-
thing; over to the Koi-eans too soon, we run the
danger of leaving behind a weak govei-nment wliich
miglit liave to lean on foreign powers for financial
and technical assistance.
Vincent : Tliat might be a danger to Korean sov-
ereignty, and it should be avoided at all costs.
Presgott: I'd like to point out one thing: you
can't have political unification in Korea until
Korea is integrated economically. There must be
complete freedom to travel and ship goods from
one zone to the other. Until this is accomplished
there is bound to be dissension and political agita-
tion, and it will be impossible to form an effective
provisional government. So the first problem to
be tackled is economic unification.
Vincent: Our objective is complete unification
of Korea at the earliest possible moment, Colonel,
for exactly the I'easons you mentioned. And in
Moscow, the Soviet Government gave every indi-
cation that it holds the same view. It may take a
little time, but once we form the Joint Commission
we should be able to lay the groundwork for a pro-
visional government without much delay.
Fisher: That's very encouraging, Mr. Vincent.
Now, Mr. Alartin, to get back to the economic side,
what are the main economic problems facing
Korea ?
Martin : Well, aside from a proper distribution
of rice and coal, Korea needs unification of her
transportation and communications systems. Then
she badly needs a unified finance system. In addi-
tion, the inflated Bank of Chosen yen now in use
must be replaced by a new Korean currency. But
a new currency alone will not stop the present infla-
tion. Increased production of things people want
to buy is the only final solution for that.
Fisher: Colonel Prescott, what about that?
Prescott : Korea certainly does have inflation.
On August 6, 1945 there were 4 billion yen circu-
lating in Korea. In the next month the Japanese
put an additional '?> billion yen into circulation.
Some of it they gave to the Korean Morkers as a
bonus to try to buy good-will so they could get
away safely. Some was used to buy goods to salt
away against inflation. Some the Japanese tried
to take back to Japan, but we searched them pretty
thoroughly at the ports, and I don't think much
slipped through. I agree with Mr. Martin that
Korea must have a new currency system, but the
integration of the two zones must come first.
Fisher: Mr. Martin, what about Korean in-
dustry ?
Martin: So far the main task there has been
to get Korean personnel to take it over. Vir-
tually all transport, utilities, and heavy industry,
including chemicals and light metals, were owned
by Japanese corporations or by the Japanese
colonial government of Korea.
Fisher: What has been done with these in-
dustries ?
Martin: Title to these, and to all Japanese
property, is vested in the Military Government,
which is running them now. It will continue to
do so until a Korean jirovisional government is
set up on a democratic basis. Then the Koreans,
through their own government, will decide
whether they want to leave these inchistries in the
hands of their government or adopt some other
course. This is a basic decision, and it must be
made by the Koreans themselves.
Fisher: That's fair enough. Now, about in-
dustrial technicians, Mr. Martin — are there
enough of them available over there?
Martin: No, that's a serious problem. AVith
the consent of the Koreans, we've left a very few
Japanese in technical jobs, under close supervision.
The alternatives are to turn the jobs over to
Koreans, who aren't always well trained and ac-
cept considerable inefficiency, or to bring in
foreigners to help operate the Korean economy
and train Korean replacements. The carefully
managed use of a limited number of foreign tech-
nicians seems to be necessary, but we will always
have to be on our guard to prevent permanent de-
pendence on foreigners. It's always a lot easier
to get them in than to get them out.
Fisher : And what about dividing up the land ?
That must be quite a problem.
Martin: Yes, Korea has a severe land prob-
lem— the same serf-like landlord-tenant relation-
ship that you find in so many Oriental countries.
So despite the fact that the land is very productive,
the peasants have had little opportunity to improve
their lot. This is a long-range problem that the
Koreans will have to work out themselves. The
110
DEPARTMENT OF STATE BULLETIN
most we can do is lielji them along the riglit track.
FisiiER : Some of tlie land must liave been oAvned
by the Japanese, Mr. Martin. What happened to
it?
Martin: It i.s now being- rented by the Military
Government to the tenant farmers who work it.
Under the plan we contemplate, it will be divided
up and sold on such terms that the tenant farmers
can purchase it. A national agricultural credit
system will have to be established to make long-
term loans at low interest rates.
Fisher: And who would get the money? The
former Jajianese owners ?
Martin : No, the Korean Government. All the
Japanese get for their possessions in Korea is a
receipt, which the Japanese Government can honor
or not, as it chooses.
Fisher: Mr. Vincent. I suppose the Keparation
Commiasion will have the final say on the disposal
of Japanese assets in Korea.
Vincent: Yes. We expect it to turn all Japa-
nese assets there over to Korea. At least that's
the recommendation of the President's special am-
bassador on reparation problems, Mr. Pauley.
Martin: One further point: Korea has the re-
sources to stand on her own feet. She's not rich,
but she has plenty of food and other essentials to
support her large population. But she cannot
live entirely to herself. Her economy is too closely
tied up with that of Manchuria. Her transporta-
tion, her imports of soy beans and millet, her
Yalu River electric-power system, all call for
close integration with the Chinese economy in
Manchuria.
Vincent: And I might add that we hope even-
tually to facilitate the return of American mis-
sionaries and businessmen to Korea. The mis-
sionaries have done good work there. And the
businessmen will help Korea by reviving American
trade, which was once so important to her.
Fisher: Well, Mr. Vincent, your program for
Korea seems to provide for the establishment of
democracy in both the political and economic
fields. It would result in reforms as far reaching
and progressive as those instituted in Japan, and
would eventually make Korea a progressive, in-
dependent nation. This would be done under the
joint auspices of the United States and the Soviet
Union.
Vincent: You're right, Mr. Fisher. It will be
a test of the ability of two great poM'ers to co-
operate in solving a problem of mutual interest
and of interest to the United Nations as a whole.
If the Joint Commission works out as successfully
as we hope it will, the achievement should furnish
a firm stepping-stone for solving other problems
that will inevitably face us. Furthermore, the
successful achievement of our aims in Korea
should furnish a pattern for tlie development of
other peojjles toward self-government and inde-
pendence.
Martin : To put it in slightly different terms,
Mr. Vincent, the United States and the Soviet
Union have a made-to-order opportunity to show
that we can free Korea without getting involved in
any imperialistic adventures.
Vincent: Yes,- there's something to what you
say. And I might add that there are two major
essentials to the success of this undertaking. They
are: that the Russian and American representa-
tives chosen to do the job be of a caliber and
character which will assure that they will ap-
proach the problem with unprejudiced intelligence
and in a spirit of real cooperation; and that
the Korean leaders submerge their factional dif-
ferences and work with united zeal to reestablish
the statehood of Korea.
FisiiER : Well, thank you. gentlemen, for giving
us this revealing picture of Korea and the signifi-
cance of our policy there. And, Mr. Vincent,
we're looking forward to discussing our policy in
China with you, before too long.
Announcer : That was Sterling Fisher, Director
of NBC's University of the Air. He has been in-
terviewing John Carter Vincent and Edwin M.
Martin of the State Department and Col. Brainard
E. Prescott of the War Department, on our Korean
policy and its implications for the Far East. The
discussion was adapted for radio by Selden Mene-
fee.
Next week we expect to present a broadcast of
outstanding interest. The question "How Free
Can World News Be?'' will be discussed by As-
sistant Secretary of State AVilliam Benton and
others. The proposal for an international agree-
ment on freedom of the press, the relationship of
the United States Government information service
abroad to the private news agencies, and the re-
sults of the recent Bermuda Telecommunications
Conference will all come in for discussion. Listen
in next week at the same time for this important
broadcast.
JANUARY 27. 1946
111
American and Soviet Commands in Korea Plan
Administrative Coordination^
The Department of State has been informed of
an exchange of letters between Col. Gen. Ivan
Mihailovitch Chistiakov. Commanding General,
Q.'ith Army Soviet Forces in Korea, and Lt. Gen.
John II. Hodge, United States Army, Command-
ing General, Korean area.
The text of the letter from General Chistiakov,
dated January 8, follows:
Dear General :
I have received from my Commanding Officer
orders to discuss with you important questions
about south and north Korea, and to take measures
to establish jDermanent administrative coordina-
tion between the American Command of South
Korea and the Soviet Command of North Korea.
It is necessary to do so within 2 weeks of confer-
ence between representatives of American and So-
viet Commands in Korea.
Hereby, I have the lionor to inform you of our
readiness to conduct such a conference.
The representative of the Soviet Command in
this conference is Colonel General Shtikov, who is
ready to meet with your representatives between
the 15th and 20th of January, 1946, in Seoul or any
other place convenient to you.
Colonel General Shtikov will be accompanied by
the Political Advisor Tsarapkin, Major General
Panin, Major Genei-al Romanyenko and the group
of advisors and technical personnel of between 12
and 15 men.
If you are ready to conduct the above mentioned
conference, will you kindly appoint your repre-
sentatives and inform me of your agreement about
conduction this conference.
Respectfully yours,
Chistiakov, Colonel General
General Hodge replied on January 9:
Dear General Chistiakov :
I have the honor to have received your letter of
8 January in reference to a meeting between rep-
resentatives of the Soviet and American forces in
Korea.
I suggest that the place of meeting be at Seoul
and that the date be not later than 15 January,
WILCOX — Continued from page 102.
would have to curtail her imports and buy these
smaller quantities within the sterling area instead
of buying in the United States. She would have
to tighten exchange controls so that her limited
supply of dollars could not be spent freely for
American goods. She would be compelled so to
administer her import quotas as to discriminate
against goods that had to be paid for in scarce
monies — specifically, in dollars. She would be
driven to raise her tariffs against us, widen the
margins of imperial preference, and enter into
bilateral deaLs with other countries of the world.
Such measures might well be justified by the situa-
tion in which Britain would find herself. But
they would operate to exclude American traders
from the richest markets in the world. The pres-
sure for retaliation Mould almost certainly be
irresistible.
If there were to be an economic war, I think it is
clear that the American Proposals for E.vpansion
of World. Trade and E-mploynvent would have
to be abandoned. Our whole line of policy would
have to be reversed. We should have to regiment
our import and our export trade. And, in the
process, we should have to deprive our domestic
industry of a large measure of the freedom which
it now enjoys. Excluded from markets in the
sterling bloc, we should have to attract and hold
the members of a dollai- bloc. And we might have
to spend a good many billions in the process. If
there should be an economic war, we could doubt-
less win it. But it would be a sorry victory. The
division of the world into contending economic,
political, and military blocs would be a tragedy,
not only for Britain but for us and for every other
nation on earth. To prevent it is the dominating
purjjose of our foreign economic policy. It is in
the context of this policy that one must judge the
British loan. This is its real significance.
' Released to the press Jan. 15.
112
DEPARTMENT OF STATE BULLETIN
1946, or as soon tliereafter as your party can ai'-
range.
I will provide accommodations for the Soviet
party of 12 to 15 persons. If there is any cliange
in the total niimlier in the l)arty, it is requested that
I be informed in suthcient time to make the neces-
sary billeting arrangements. It is also requested
that I be furnished with a full list of your party
by rank and a statement of office equipment desired
]^' them. These may be dispatclied l>y telephone
direct to my headquarters or through the Soviet
Consulate.
Major General A. V. Arnold will liead the
American committee for the conference with
Colonel General Shtikov and will have the neces-
sary and appropriate technical personnel readilj'
available.
It is presumed that the Soviet personnel will
travel to Seoul by rail. If this assumption is cor-
rect, it is requested that I be informed of the ex-
pected time and date of arrival in order that we
may meet and transport them.
In order to facilitate further communication
between our 2 headquarters, it is suggested that
you place a Russian English language interpreter
on duty with your lieadijuarters.
Sincerely yours,
John R. Hodge, Lt. General, V. S. Army
Conimanding General, Korean Area
French Government To Take Part in
Conference on Peace Treaties
Te.rt of a note delivered to the French Govern-
ment bj/ the Secrefari/ of State Byrnes, on Janu-
ary 13. It is being released siniultaneously in
London, Paris, and Washington}
I am happy to note that the French Govern-
ment has expressed its willingness to take part
in the proposed Conference for the consideration
of peace treaties and is ready so far as it is con-
cerned to invite all the governments envisaged
in the proposal to send their representatives to the
Conference at Paris.
In order that the Frencii Government may be
in a position to confirm this understanding, I am
glad to furnish in response to the French Govern-
ment's request for clarification, the following ex-
planations and information in the name of the
Governments of the United States of America, the
Union of Soviet Socialist Republics and the
United Kingdom :
(1) The French Government desires to be in-
formed of the future work of the Council of the
Foreign Ministers. It is our understanding that
tilt" future role of the Council of Foreign INIinisters
is that provided in the Potsdam Agreement with
the exi'eption that after the Peace Conference is
held tlu' states which are signatory to the Armis-
tice will draft the final treaty, taking into account
' Released to the press Jan. IS.
the recommendations of the Peace Conference.
As stated in the French Government's conununi-
cation, the Potsdam Agreement provided for the
preparation of the peace settlement with Ger-
many. The agreement reached at Moscow is in
no way intended to alter the previous understand-
ing with regard to the preparation of the peace
settlement with Germany. Fiu-thermore, the
Potsdam Agreement likewise provided that other
wox'k might be assigned to the Council from time
to time by the member governments. No change
in this provision was anticipated at Moscow.
(2) In response to Point 2 of the French com-
munication it may be stated that the Potsdam
Agreement provided for the possibility that the
Council of Foreign Ministers might invite the rep-
resentatives of other governments when matters
which particularly concerned them were to be
discussed. Inasmuch as the Moscow agreement
did not seek to i*epeal the Potsdam Agreement, the
Council retains the authority to invite any state
to particii)ate in the discussions whenever there is
pending a matter of direct interest to such state.
The Council, as constituted for the preparation of
specific treaties, or the Deputies of the Powers
represented for that purpose, may determine from
time to time when such matters arise and are
authorized to extend invitations.
(3) The French Government may rest assured
]ANVARY 27, 1946
113
that as broad and thorough a discussion as possible
shall take place at the forthcoming Conference
and that the final drafts of the treaties will be
made only after the fullest consideration has been
given to the recommendations of the Conference.
We have no doubt that no final treaty would be
concluded which arbitrarily rejected the recom-
mendations of the Conference.
(4) With respect to the views of the states with
which the treaties are to be concluded, the work
of preparation for the draft treaties will take into
account the views of these states and adequate
opportunities will be given these states to discuss
tlie treaties and to present their views both in the
fornndation of the drafts, as was permitted in the
earlier meetings in London, and at the May Con-
ference. It is agreed that this does not constitute
a precedent for peace settlements which are not
tlie subject of the present discussions.
It is believed that the foregoing explanation will
provide the information necessary for the deter-
mination of the functions of the proposed Con-
ference, and it is hoped that the French Govern-
ment will now be in a position to confirm its agree-
ment to participate in the proposed Conference.
Policy on Japanese
Mandated Islands
At the President's press and radio news confer-
ence on January 15 a correspondent said there had
been reports that the Delegation at London seems
to be divided on the question of Japanese man-
dated islands, and asked what the administration's
policy was regarding these islands. The President
declared that those we do not need will be placed
under UNO trusteeship, and those we need we will
keep. Asked how long we intended to keep these
islands, Mr. Truman said, as long as we needed
them. Asked whether they would be under indi-
vidual trusteeship of this country, the President
replied in the affirmative in regard to tho.se islands
we need. Asked whether the others would be un-
der tlie Security Council, Mr. Truman replied in
the afhrmative, adding, just like all the rest of
tliem. A correspondent asked whether some is-
lands would be under our trusteeship and some
under individual trusteeship of other nations. The
President said that some would be under indi-
vidual trusteeships as well as collective trusteeship.
but that policy would have to be worked out by the
United Nations Organization as it went along.
Asked whether we would have to ask UNO's au-
thority for our individual trusteeships, the Presi-
dent replied affirmatively. A correspondent said
that there were several Pacific islands below the
equator that were not Japanese-mandated and
asked M'liether we were interested in those. The
President replied, only in conjunction with our
Allies. Asked whether we had demanded any of
these islands which we need, the President declared
that we have not.
Military Missions to
Control Conncil in Berlin'
On June 5, 1945 the Governments of the Lhiited
States, the Union of Soviet Socialist Republics,
and the United Kingdom, and the Provisional
Government of the French Republic stated that :
"5. Liaison with the other United Nations Gov-
ernments chiefly interested will be established
through the appointment by such Governments of
military missions (which may include civilian
members) to the Control Council. These missions
will have access through the appropriate channels
to the organs of control." "
Pursuant to this declaration the Allied Control
Council in Berlin on October 3, 1945 agreed to re-
ceive military missions accredited to the Control
Council from the following Ifi countries: Aus-
tralia, Belgium, Brazil, Canada, China, Czecho-
slovakia, Denmark, Greece, Netherlands, India,
Luxembourg, New Zealand, Norway, Poland,
South Africa, and Yugoslavia.
The Department of State understands that each
mission will be limited to 10 members, because of
housing shortage and lack of other facilities in
Berlin, and that the missions will be stationed 4
to each occupation sector in Berlin.
Each government was asked to send a repre-
sentative to Berlin to make the necessary arrange-
ments for accommodations and arrival of the mis-
sion. It is understood that some of the missions
have already arrived and the others will arrive
shortly.
' Relea.sed to tlin press Jan. IS.
■ Bulletin of June 16, 194.">. p. 1054.
114
DEPARTMENT OF STATE BULLETIN
Reparation From Germany
FINAL ACT AND ANNEX OF THE PARIS CONFERENCE ON REPARATION
CONFERENCE RECOMMENDATION
The Paris Conference on Reparation, which has
met from 9 November 1945 to 21 December 1945,
recommends that the Governments represented at
the Conference should sign in Paris as soon as
possible an Agreement on Reparation from Gei'-
many, on the Establishment of an Inter-Allied
Reparation Agency and on the Restitution of
Monetary Gold in the terms set forth below.-
DRAFT AGREEMENT ON REPARATION FROM GER-
MANY, ON THE ESTABLISHMENT OF AN INTER-
ALLIED REPARATION AGENCY AND ON THE RESTI-
TUTION OF MONETARY GOLD
The Governments of Albania, The United
States of America, Australia, Belgium, Can-
ada, Denmark, Egypt, France, The United
Kingdom of Great Britain and Northern Ire-
land, Greece, India, Luxembourg, Norway, New
Zealand, The Netherlands, Czechoslovakia,
The Union of South Africa and Yugoslavia, in
order to obtain an equitable distribution among
themselves of the total assets which, in accordance
with tlie provisions of this Agreement and the
Provisions agreed upon at Potsdam on 1 August
1945 between the Governments of the United
States of America, the United Kingdom of Great
Britain and Northern Ireland and the Union of
Soviet Socialist Republics, are or may be de-
clared to be available as rejjaration from Germany
(hereinafter referred to as German reparation),
in order to establish an Inter-Allied Reparation
Agency, and to settle an equitable j^rocedure for
the restitution of monetary gold,
Have agreed as follows :
Part I
German Reparation
Article 1. Shares in Reparation.
A. German reparation (exclusive of tlie funds
to be allocated under Article S of Part I of this
' Released to the press Jan. 15.
^ On Jan. 14 the following governments signed the
agreemont: United States, France, United Kingdom, Neth-
erlands, Belgium, Yugoslavia, and Luxemliourg. The sig-
natures represent 84.15 percent of Category A quotas, thus
hringing tlie agreement into effect as of Jan. 14.
Agreement), shall be divided into the following
categoi'ies :
Category A, whicli shall include all forms of
German repai'ation except those included in
Category B,
Category B, which shall include industrial and
other capital equipment removed from Germany,
and merchant ships and inland water transport.
B. Each Signatory Government shall be enti-
tled to the pei'centage share of the total value of
Category A and the percentage share of the total
value of Category B set out for that Government
in the Table of Shares set forth below :
Table of Shares.
Country
Albania
United States of America.
Australia
Belgium
Canada
Denmark
Egypt
France
United Kingdom
Greece
India
Luxembourg
Norway
New Zealand
Netherlands
Czechoslovakia
Union of South Africa (o)
Yugoslavia
Total
Category A
05
28
00
70
2
70
3
50
25
05
16.
00
28.
00
2.
70
2.
00
15
1.
30
40
3.
90
3.
00
70
6.
60
100.
00
Category B
.35
11. 80
.95
4. 50
1. 50
.35
.20
22. 80
27. 80
4. 35
2. 90
.40
1. 90
.60
5. 60
4. 30
. 10
9. 60
100. 00
(0) The government of the Union of South Africa has undertaken to waive
Its claims to the extent necessary to reduce its percentage share of Category B
to the fifiure of 0.1 per cent but is entitled, in disposing of German enemy
assets witliin its jurisdiction, to charge the net value of such assets against its
percentage share of Category A and a i)ercentage share under Category B of
0.1 percent.
C. Subject to the provisions of paragraph D
below, each Signatory Government shall be en-
titled to receive its 'share of merchant ships deter-
mined in accordance with Article 5 of Part I of
this Agreement, provided that its receipts of
}.4!\VARY 27, 1946
115
mercluuit ships do not exceed in value its share in
Categoi'y B as a whole.
Subject to tlie provisions of paragraph D be-
low, each Signatory Government shall also be
entitled to its Category A percentage share in
German assets in countries which i-emained neu-
tral in the war against Germany.
The distribution among the Signatory Govern-
ments of forms of German reparation other than
merchant ships, inland water transpoi't and Ger-
man assets in countries which remained neutral
in the war against Germany shall be guided by
the principles set forth in Article 4 of Part I of
this Agreement.
D. If a Signatory Government receives more
than its percentage share of certain types of assets
in either Category A or Category B, its receipts
of other types of assets in that Category shall be
i-educed so as to ensure that it shall not receive
more than its share in that Category as a whole.
E. No Signatory Government shall receive more
than its percentage share of eitlier Category A
or Category B as a whole by surrendering any
part of its percentage share of the other Category,
except that with respect to German enemy assets
within its own jurisdiction, any Signatory Govern-
ment shall be permitted to charge any excess of
such assets over its Category A percentage share
of total German enemy assets within the juris-
diction of the Signatory Governments either to
its receipts in Category A or to its receipts in
Category B or in part to each Category.
F. The Inter- Allied Reparation Agency, to be
established in accordance with Part II of this
Agreement, shall charge the reparation account
of each Signatory Government for the German
assets within that Government's jurisdiction over
a period of five years. The charges at the date
of the entry into force of this Agreement shall be
not less than 20 per cent of the net value of such
assets (as defined in Article 6 of Part I of this
Agreement) as then estimated, at the beginning
of the second year thereafter not less than 25 per
cent of the balance as then estimated, at the begin-
ning of the third year not less than 33V3 per cent
of the balance as then estimated, at the beginning
of the fourth year not less than 50 per cent of the
balance as then estimated, at the beginning of the
fifth year not less than 90 per cent of the balance
as then estimated, and at the end of the fifth year
the entire remainder of the total amount actually
realized.
G. The following exceptions to paragraphs D
and E above shall apply in the case of a Signatory
Government whose share in Category B is less
tlian its share in Category A:
(i) Receipts of merchant ships by any such
Government shall not i-educe its percentage share
in other types of assets in Category B, except to
the extent that such receipts exceed the value ob-
tained when that Government's Category A per-
centage is applied to the total value of merchant
ships.
(ii) Any excess of German assets within the
juri.sdiction of such Government over its Category
A percentage share of the total of German assets
within the jurisdiction of Signatory Governments
as a whole shall be cliarged first to the additional
share in Category B to which that Government
would be entitled if its share in Category B were
determined by applying its Category A {lercent-
age to the forms of German reparation in Cate-
gory B.
H. If any Signatory Government renounces its
shares or part of its shares in German reparation
as set out in the above Table of Shares, or if it
withdraws from the Inter-Allied Reparation
Agency at a time when all or part of its shares in
German reparation remain unsatisfied, the shares
or part thereof thus renounced or remaining shall
be distributed rateably among the other Signatory
Governments.
Article 2. Settlement of Claims against Germany.
A. The Signatory Governments agree among
themselves that their respective shares of repara-
tion, as determined by the present Agreement,
shall be regarded by each of them as covering all
its claims and those of its nationals against the
former German Government and its Agencies, of
a governmental or private nature, arising out of
the war (which are not otherwise provided for),
including costs of German occupation, credits ac-
quired during occupation on clearing accounts and
claims against the Reichskreditkassen.
B. The provisions of paragraph A above are
without prejudice to:
(i ) The determination at the proper time of the
116
DEPARTMENT OF STATE BULLETIN
forms, diiratidii ov totiil iuiiount of reparation to be
made by Germany ;
(ii) The ri<iht which each Signatory Govern-
ment may liave with respect to the final settlement
of German reparation ; and
(iii) Any political, territorial or other denninds
which any Signatory Government may put for-
ward witii respect to the peace settlement with
Germany.
C. Notwithstanding anything in the provisions
of paragraph A above, the present Agreement shall
not be considered as affecting:
(i) The obligation of the appropriate authori-
ties in GermaJiy to secure at a future date the dis-
charge of claims against Germany and German
nationals arising out of contracts and other obliga-
tions entered into, and rights acquired, before the
existence of a state of war between Germany and
the Signatory Government concerned or before the
occupation of its territory by Germany, whichever
was earlier;
(ii) The claims of Social Insurance Agencies
of the Signatory Governments or the claims of
their nationals against the Social Insurance Agen-
cies of the former German Government ; and
( iii ) Banknotes of the Reichsbank and the Ren-
tenbank, it being understood that their realization
shall not have the result of reducing improperly
the amount of reparation and shall not be eifected
without the approval of the Control Council for
Germany.
D. Notwithstanding the provisions of para-
graph A of this Ai-ticle, the Signatory Govern-
ments agree that, so far as they are concerned, the
Czechoslovak Government will be entitled to draw
upon the Giro Account of the National Bank of
Czechoslovakia at the Reichsbank, should such ac-
tion be decided upon by the Czechoslovak Gov-
ernment and be approved by the Control Council
for Germany, in connection with the movement
from Czechoslovakia to Germany of foimer
Czechoslovak nationals.
Article 3. Waiver of Claims Regarding Property Allo-
cated as Reparation,
Each of the Signatory Governments agrees that
it will not assert, initiate actions in international
tribunals in respect of, or give diplomatic sup-
port to claims on behalf of itself or those persons
entitled to its protection against any other Signa-
tory Govenunent or its nationals in respect of
property received by that Government as repa-
ration with the approval of the Control Council
for Germany.
Article 4. General Principles for the Allocation of
Industrial and other Capital Equipment.
A. No Signatory Govermnent shall request the
allocation to it as reparation of any industrial or
other capital equipment removed from Germany
except for use in its own territory or for use by its
own nationals outside its own territory.
B. In submitting requests to the Inter- Allied
Reparation Agency, the Signatory Governments
shoidd endeavour to submit comprehensive pro-
grams of requests for related groups of items,
I'ather than requests for isolated items or small
groups of items. It is recognized that the work
of the Secretariat of the Agency will be more effec-
tive, the more comprehensive the programs which
Signatory Governments submit to it.
C. In the allocation by the Inter-Allied Repara-
tion Agency of items declared available for repa-
ration (other than merchant .ship.s, inland water
transport and (ierman assets in countries which
remained neutral in the war against Germany) , the
following general principles shall serve as guides:
(i) Any item or related group of items in which
a claimant country has a substantial prewar finan-
cial interest shall be allocated to that country if it
so desires. Where two or more claimants have
such substantial interests in a particular item or
group of items, the criteria stated below shall guide
the allocation.
(ii) If the allocation between competing claim-
ants is not determined by paragraph (i) , attention
shall be given, among other relevant factors, to the
following considerations :
(a) The urgency of each claimant country's
needs for the item or items to rehabilitate, recon-
struct or restore to full activity the claimant
country's economy;
(b) The extent to which the item or items
would replace property which was destroyed,
damaged or looted in the war, or requires re-
placement because of excessive wear in war pro-
duction, and which is important to the claimant
coimtry's economy ;
(c) The relation of the item or items to the
general pattern of the claimant country's prewar
JANUARY 27, 1946
117
economic life aiul to programs for its postwar
economic adjustnu'iit or development;
{(/) The requirements of countries whose rep-
aration shares are small but which are in need of
certain specific items or categories of items.
(iii) In making allocations a reasonable balance
shall be maintained among the rates at which the
re[)aration shares of the several clainumt (jovern-
ments are satisfied, subject to such temporary ex-
ceptions as are justified by the considerations under
l)aragraph (ii) (a) above.
Article 5. General I'riiiciples fttr the Allitcatiim itf
Merchant Ships and Inland II aler Transport.
A. (i) German merchant ships available for dis-
tribution as reparation among the Signatory
Governments shall be distributed among them in
proportion to the respective over-all losses of
merchant shipping, on a gross tonnage basis, of
the Signatory Governments and their nationals
through acts of war. It is recognized that trans-
fers of merchant ships by the United Kingdom
and United States Governments to other Govern-
ments are subject to such final approvals by the
legislatures of the United Kingdom and United
States of America as may be required.
(ii) A special committee, composed of repre-
sentatives of the Signatory Governments, shall be
appointed by the Assembly of the Inter-xVllied
Reparation Agency to make recommendations
concerning the determination of such losses and
the allocation of German merchant ships available
for distribution.
(iii) The value of German merchant ships for
reparation accounting purposes shall be the value
determined by the Tri-partite Merchant Marine
Commission in terms of 1938 prices in Ger-
many plus 15 per cent, with an allowance for
depreciation.
B. Recognizing that some countries have special
need for inland water transport, the distribution
of inland water transport shall be dealt with by
a special committee appointed by the Assembly
of the Inter-Allied Reparation Agency in the event
that inland water transport becomes available at a
future time as reparation for the Signatory Gov-
ernments. The valuation of inland water trans-
port will be made on the basis adopted for the
valuation of merchant ships or on an equitable
basis in relation to that adopted for merchant
ships.
Article 6. German External Assets.
A. Each Signatory Government shall, under
such procedures as it may choose, hold or dispose
of German enemy assets within its jurisdiction in
manners designed to preclude their return to Ger-
man ownership or control and shall charge against
its reparation share such assets (net of accrued
taxes, liens, expenses of administration, other in
rem charges against specific items and legitimate
ci>ntract claims against the German former owners
of such assets).
B. The Signatory (jovernments shall give to
the Inter-Allied Rei)aration Agency all informa-
tion for which it asks as to the value of such assets
and the amounts realized from time to time by
their liquidation.
C. German assets in those countries which re-
mained neutral in the war against Germany shall
be removed from German ownership or control
and liquidated or disposed of in accordance with
the authority of France, the United Kingdom
and the United States of America, pursuant to ar-
rangements to be negotiated with the neutrals by
these countries. The net proceeds of liquidation
or disposition shall be made available to the Inter-
Allied Reparation Agency for distribution on
reparation account.
D. In applying the provisions of paragraph A
above, assets which were the proj)'erty of a coun-
try which is a member of the United Nations or
its nationals who were not nationals of Germany
at the time of the occupation or annexation of this
country by Germany, or of its entry into war, shall
not be charged to its reparation account. It is
understood that this provision in no way pre-
judges any questions which may arise as regards
assets which were not the property of a national of
the country concerned at the time of the latter's
occupation or annexation by (lermany or of its
entry into war.
E. The German enemy assets to be charged
against reparation shares shall include assets
which are in reality German enemy assets, despite
the fact that the nominal owner of such assets is
not a German enemy.
Each Signatory Government shall enact legis-
lation or take other appropriate steps, if it has
not already done so, to render null and void all
transfers made, after the occupation of its terri-
tory or its entry into war, for the fraudulent pur-
pose of cloaking German enemy interests, and
778
DEPARTMENT OF STATE BULLETIN
thus saving them harmless from the effect of con-
trol measures regarding German enemy interests.
F. The Assembly of the Inter- A Hied Repara-
tion Agency shall set up a Committee of Experts
in matters of enemy property custodianship in
order to overcome practical difficulties of law and
interpretation which may arise. The Committee
should in particular guard against schemes which
miglit result in effecting fictitious or other trans-
actions designed to favour enemy interests, or to
reduce improperly the amount of assets wliicli
might be allocated to reparation.
Article 7. Captured Supplies.
The value of supplies and other materials sus-
ceptible of civilian use captured from the Ger-
man Armed Forces in areas outside Germany and
delivered to Signatory Governments shall be
charged against their reparation shares in so far
as such supplies and materials have not been or
are not in tlie futiu-e either paid for or delivered
under arrangements precluding any charge. It
is recognised that transfers of such supplies and
material by the United Kingdom and United States
Governments to other Ciovernments are subject to
such final approval by the legislature of the United
Kingdom or the United States of America as may
be required.
Article 8. Allocation of a Reparation Share to Non-
repatriahle Victims of German Action.
In recognition of the fact that large numbers
of persons have suffered heavily at the hands of
the Nazis and now stand in dire need of aid to pro-
mote their rehabilitation but will be unable to
claim the assistance of any Government receiving
reparation from Germany, the Governments of
the United States of America, France, the United
Kingdom, Czechoslovakia and Yugoslavia, in con-
sultation with the Inter-Governmental Commit-
tee on Refugees, shall as soon as possible work out
in common agi-eement a plan on the following
general lines:
A. A share of reparation consisting of all the
non-monetary gold found by tlie Allied Armed
Forces in Germany and in addition a sum not ex-
ceeding Li;-) million dollars shall be allocated for
the rehabilitation and resettlement of non-repatri-
able victims of German action.
B. The sum of 25 million dollars shall be met
from a iDortion of the proceeds of German assets
in neutral countries which are available for rep-
aration.
■ C. Governments of neutral countries shall be
requested to make available for this purpose (in
addition to the sum of 25 million dollars) assets
in such countries of victims of Nazi action who
have since died and left no heirs.
D. The persons eligible for aid under the plan
in question shall be restricted to true victims of
Nazi persecution and to their immediate families
and dependents, in the following classes:
(i) Refugees from Nazi Germany or Austria
who require aid and cannot be returned to their
countries within a reasonable time because of pre-
vailing conditions;
(ii) German and Austrian nationals now resi-
dent in Germany or Austria in exceptional cases
in which it is reasonable on grounds of humanity
to assist such persons to emigrate and providing
they emigrate to other countries within a reason-
able period ;
(iii) Nationals of countries formerly occupied
Iiy the Germans who cannot be repatriated or are
not in a j^osition to be repatriated within a reason-
able time. In order to concentrate aid on the most
needy and deserving refugees and to exclude per-
sons whose loyalty to the United Nations is or was
doubtful, aid shall be restricted to nationals or
former nationals of previously occupied countries
who were victims of Nazi concentration camps or
of concentration camps established by regimes
under Nazi influence but not including persons who
liave been confined only in prisoners of war camps.
E. The sums made available under paragraphs
A and B above shall be administered by the Inter-
Governmental Committee on Refugees or by a
United Nations Agency to which appropriate func-
tions of the Inter-Governmental Committee may
in the future be transferred. The sums made
available under paragraph C above shall be ad-
ministered for the general purposes referred to in
this Article under a program of administration
to be fornudated by the five Governments named
above.
F. The non-monetary gold found in Germany
shall be i^laced at the disposal of the Inter-Govern-
mental Committee on Refugees as soon as a plan
has been worked out as provided above.
G. The Inter-Governmental Committee on Refu-
gees shall liave power to carry out the purposes of
JANUARY 27, 1946
119
tlie funil tlirough appropriate public ami private
field organisations.
H. Tlie fund sliall be used, not for tlie compensa-
tion of individual victims, but to further the re-
habilitation or resettlement of persons in the eligi-
ble classes.
I. Nothing in this Article shall be considered to
l)reju(liee the claims which individual refugees
ma}' have against a future German Government,
except to the amount of the benefits that such refu-
gees may have received from the sources referred
to in paragraphs A and C above.
Part II
Inter-Allied Reparation Agency
Article 1. Establishment of the Agency.
The Governments signatory to the present
Agreement hereby establish an Inter- Allied Repa-
ration Agency (hereinafter referred to as the
"Agency"). Each (iovernment shall appoint a
Delegate to the Agency and shall also be entitled
to api^oint an Alternate who, in the absence of the
Delegate, shall be entitled to exercise all the func-
tions and rights of the Delegate.
Article 2. Functions of the Agency.
A. The Agencj' shall allocate German repara-
tion among the Signatory Governments in accord-
ance with the provisions of this Agreement and
of any other agreements from time to time in force
among the Signatory Governments. For this
purpose, the Agency shall be the medium through
which the Signatory Governments receive infor-
mation concerning, and express their wishes in
regard to, items available as reparation.
B. The Agency shall deal with all questions re-
lating to the restitution to a Signatory Govern-
ment of property situated in one of the Western
Zones of Germany which may be referred to it by
the Commander of t];at Zone (acting on behalf of
his (iovernment), in agreement with the claimant
Signatory Government or Governments, without
]n-ejudice, however, to the settlement of such ques-
tions by the Signatory Governments concerned
either by agreement or arbitration.
Article 3. Internal Organization of the Agency.
A. The oi'gans of the Agency shall be the As-
sembly and the Secretariat.
B. The Assembly shall consist of the Delegates
and shall be presided over by the President of the
Agency. The President of the Agency shall be
the Delegate of the Government of France.
C. The Secretariat shall be under the dii-ection
of a Secretary General, assisted by two Deputy
Secretaries General. The Secretary General and
the two Deputy Secretaries General shall be ap-
pointed by the Governments of France, the United
States of America and the United Kingdom. The
Secretariat shall be international in character. It
shall act for the Agency and not for the individual
Signatory Governments.
Article 4. Functions of the Secretariat.
The Secretariat shall have the following func-
tions :
A. To prepare and submit to the Assembly pro-
grams for the allocation of German reparations;
B. To maintain detailed accounts of assets avail-
able for, and of assets distributed as, German
reparation;
C. To prepare and submit to the Assembly the
budget of the Agency ;
D. To perform such other administrative func-
tions as may be required.
Article 5. Functions of the Assembly.
Subject to the i^rovisions of Articles i and 7 of
Part II of this Agreement, the Assembly shall allo-
cate German reparation among the Signatory Gov-
ernments in conformity with the provisions of this
Agreement and of any other agreements from time
to time in force among the Signator}' Govern-
ments. It shall also approve the budget of the
Agency and shall perform such other functions as
are consistent with the provisions of this Agree-
ment.
Article 6. Voting in the Assembly.
Except as otherwise provided in this Agreement,
each Delegate shall have one vote. Decisions in
the Assembly shall be taken by a majority of the
votes cast.
Article 7. Appeal from Decisions of the Assembly,
A. When the Assembly has not agreed to a claim
presented by a Delegate that an item should be
allocated to his Government, the Assembly shall, at
the request of that Delegate and within the time
limit prescribed by the Assembly, refer the ques-
tion to arbitration. Such reference shall suspend
the effect of the decision of the Assembly on that
item.
120
DEPARTMENT OF STATE BULLETIN
B. The Delegates of the Governments claiming
an item referred to arbitration under paragraiih
A above shall select an Arbitrator from among
the other Delegates. If agreement cannot be
reached upon tlie selection of an Arbitrator, the
United States Delegate shall either act as Arbi-
trator or appoint as Arbitrator another Delegate
from among the Delegates whose Governments are
not claiming the item. If the United States Gov-
ernment is one of the claimant Governments, the
President of the Agency shall appoint as Arbitra-
tor a Delegate whose Government is not a claimant
(iovernment.
Article H. Powers of the Arbitrator.
When the question of the allocation of any item
is referred to arbitration under Article 7 of Part
II of this Agreement, the Arbitrator shall have
authority to make final allocation of the item
among the claimant Governments. The Arbitrator
may, at his discretion, refer the item to the Secre-
tariat for further study. He may also, at his dis-
cretion, i-equire the Secretariat to resubmit the item
to the Assembly.
Article 9. Expenses.
A. The salaries and expenses of the Delegates
and of their staffs shall be j^aid by their own Gov-
ernments.
B. The common expenses of the Agencj' shall be
met from the funds of the Agency. For the first
two years from the date of the estaltlisliment of
the Agency, these funds shall be contributed in
proportion to the percentage shares of the Signa-
tory Governments in Category B and thereafter in
proportion to their percentage .shares in Category
A.
C. Each Signatory Government shall contribute
its share in the budget of the Agency for each
budgetary period (as determined by the Assem-
bly) at the beginning of that period ; provided that
each Government shall, when this xVgreement is
signed on its behalf, contribute a sum equivalent
to not less than its Category B percentage share
of £50,000 and shall, within three months there-
after, contribute the balance of its share in the
budget of the Agency for the budgetary period in
which this Agreement is signed on its behalf.
D. All contributions by the Signatory Govern-
ments shall be made in Belgian francs or such
other currency or currencies as the Agency may re-
quire.
Article 10. Voting on the Budget,
In considering the budget of the Agencj' for any
budgetary period, the vote of each Delegate in the
Assembly shall be proportional to the share of the
budget for that period payable by his Govern-
ment.
Article 11. Official Languages.
The official languages of the Agency shall be
English and French.
Article 12. Offices of the Agency,
The seat of the Agency shall be in Brussels. The
Agency sliall maintain liaison offices in such other
places as the Assembl}% after obtaining the nec-
essary consents, may decide.
Article 13. If ithdraiial.
Any Signatory Government, other than a Gov-
ermneni which is responsible for the control of
a part of German territory, may witlulraw from
the Agency after written notice to tlie Secretariat.
Article 14. Amendments and Termination,
This Part II of the Agreement can be amended
or the Agency terminated by a decision in the As-
sembly of the majority of the Delegates voting,
provided that the Delegates forming the majority
represent Governments whose shares constitute col-
lectively not less than 80 per cent of the aggregate
of tlie percentage shares in Category A.
Article 15. Legal Capacity. Immunities and Privileges,
The Agency shall enjoy in the territory of each
Signatoi-y Government such legal capacity and
such privileges, immunities and facilities, as may
be necessary for the exercise of its functions and
the fulfilment of its purposes'. The representatives
of the Signatory Governments and the officials
of the Agency shall enjoy such privileges and
immunities as are necessary for the independent
exercise of their functions in connection with the
Agency.
Part III
Restitution of Monetary Gold
Single Article.
A. All the monetary gold found in Germany by
the Allied Forces and that referred to in para-
grajih G below (including gold coins, except those
of numismatic or historical value, which shall b6
JANUARY 27, 1946
121
restored directly if identifiable) shall be pooled
for distribution as restitution among the countries
participating in the pool in proportion to their
respective losses of gold through looting or by
wrongful removal to Germany.
B. Without prejudice to claims by way of rep-
aration for unrestored gold, the portion of mone-
tary gold thus accruing to each covmtry i)artici-
pating in the pool shall be accepted by that coun-
try in full satisfaction of all claims against Ger-
many for restitiition of monetary gold.
C. A proportional share of the gold shall be
allocated to each country concerned which adheres
to this arrangement for the restitution of monetary
gold and which can establish that a definite amount
of monetary gold belonging to it was looted by
Germany or, at any time after March l'2th, 1938,
was wrongfully removed into German territory.
D. The question of the eventual participation
of countries not represented at the Conference
(other than (iermany but including Austria and
Italy) in the above-mentioned distribution shall
be reserved, and the equivalent of the total shares
which these countries woidd receive, if they were
eventually admitted to participate, shall be set
aside to be disposed of at a later date in such man-
ner as may be decided by the Allied Governments
concerned.
E. The various countries participating in the
pool shall supply to the Governments of the
United States of America, France and the United
Kingdom, as the occupying Powers concerned, de-
tailed and verifiable data regarding the gold losses
suffered through looting by, or removal to,
Germany.
F. The Governments of the United States of
America, France and the United Kingdom shall
take aj^propriate steps within the Zones of (ier-
many occupied by them respectively to implement
distribution in accordance with the foregoing pro-
visions.
G. Any monetary gold which may be recovered
from a third country to which it was transferred
from Germany shall be distributed in accordance
with this arrangement for the restitution of mone-
tary gold.
Part IV
Entry into Force and Signature.
Article 1. Entry into Force.
This Agreement shall be open for signature on
behalf of any Government represented at the Paris
Conference on Reparation. As soon as it has been
signed on behalf of Governments collectively enti-
tled to not less than 80 per cent of the aggregate of
shares in Category A of German reparation, it
shall come into force among such Signatory Gov-
ernments. The Agreement shall thereafter be in
force among such Governments and those Govern-
ments on whose behalf it is subsequently signed.
Article 2. Signature.
The signature of each contracting Government
shall be deemed to mean that the effect of the pres-
ent Agreement extends to the colonies and overseas
territories of such Government, and to territories
under its protection of suzerainty or over which
it at present exercises a mandate.
In witness whereof, the undersigned, duly au-
thorized by their respective (lovermnents, have
signed in Paris the present Agreement, in the Eng-
lish and French languages, the two texts being
equally authentic, in a single original, wliich shall
be deposited in the Archives of the Government of
The French Eepul)lic, a certified copy thereof being
furnished by that Government to each Signatory
Government.
for the Government of
194 .
for the Government of
194 .
UNANIMOUS RESOLUTIONS BY THE CONFERENCE
The Conference has also unanimously agreed to
include the following Resolutions in the Final
Act:
1. German Assets in the Neutral Countries.
The Conference unanimously resolves that the
countries which remained neutral in the war
against Germany should be prevailed upon by all
suitable means to recognize the reasons of justice
and of international security policy which moti-
vate the Powers exercising supreme authority in
Germany and the other Powers participating in
this Conference in their efforts to extirpate the
German holdings in the neutral countries.
2. Gold transfered to the Neutral Countries.
The Conference unanimously resolves that, in
conformity with the policy expressed by the
United Nations Declaration Against Axis Acts of
Dispossession of January Ttth, lOio and the United
Nations Declaration on Gold of February 22nd,
122
DEPARTMENT OF STATE BULLETIN
1944, the countries which remained neutral in the
war against Germany be prevailed upon to make
available for distribution in accordance with Part
III of the foregoing Agreement all looted gold
transferred into their territories from German3^
3. Equality of Treatment regarding Compensation
for War Damage.
The Conference unanimously resolves that, in
the administration of reconstruction or compensa-
tion benefits for war damage to property, the treat-
ment accorded by each Signatory Government to
physical persons who are nationals and to legal
persons who are nationals of or are owned by na-
tionals of any other Signatory Government, so far
as they have not been compensated after the war
for the same property under any other form or
on any other occasion, shall be in principle not
less favourable than that which the Signatory
Government accords to its own nationals. In view
of the fact that there are many special problems
of reci]3rocity related to this principle, it is recog-
nized that in certain cases the actual implementa-
tion of the principle cannot be achieved except
through special agreements between Signatory
Governments.
Reference to the Annex to the Final Act.
During the course of the Conference, statements
were made by certain Delegates, in the terms set
out in the attached Annex, concerning matters not
within the competence of the Conference but hav-
ing a close relation with its work. The Delegates
Avhose Governments are represented on the Control
Council for Germany undertook to bring those
statements to the notice of their respective Gov-
ernments.
In witness whereof, the undersigned have signed
the present Final Act of the Paris Conference on
Reparation.
Done in Paris on December 21, 1945, in the Eng-
lish and French languages, the two texts being
equally authentic, in a single original, which shall
be deposited in the Archives of the Government
of the French Republic, certified copies thereof,
being furnished by that Government to all the
Goveinments I'epresented at that Conference.
Delegate of the
Government of
Delegate of the
Government of
ANNEX.
1. Resolution on the subject of Restitution.
The Albanian, Belgian, Czechoslovak, Danish,
French, Greek, Indian, Luxembourg, Netherlands
and Yugoslav Delegates agree to accept as the
basis of a restitution policy the following prin-
ciples :
{a) The question of the restitution of property
removed by the Germans from the Allied countries
must be examined in all cases in the light of the
United Nations Declaration of January .5th, 1943.
(ft) In general, restitution should be confined to
identifiable goods which (i) existed at the time
of occupation of the country concerned, and were
I'emoved with or without payment; (ii) were pro-
duced during the occupation and obtained by an
act of force.
(c) In cases where articles removed by the en-
emy cannot be identified, the claim for replace-
ment should be part of the general reparation
claim of the country concerned.
{d) As an exception to the above principles,
objects (including books, manuscripts and docu-
ments) of an artistic, historical, scientific (exclud-
ing equipment of an industrial character), educa-
tional or religious character which have been
looted by the enemy occupying Power shall, so far
as possible, be replaced by equivalent objects if
they are not restored.
(e) With respect to the restitution of looted
goods which were produced during the occupation
and which are still in the hands of German con-
cerns or residents of Germany, the burden of proof
of the original ownership of the goods shall rest
on the claimants and the burden of proof that the
goods were acquired by a regular contract shall
rest on the holders.
(/) All necessary facilities under the aiispices of
the Commanders-in-Chief of the occupied Zones
shall be given to the Allied States to send expert
missions into Germany to search for looted prop-
erty and to identify, store and remove it to its
country of origin.
{g) German holders of looted property shall be
compelled to declare it to the control authorities;
stringent penalties shall be attached to infractions
of this obligation.
2. Resolution on Reparation from Existing Stocks
and Current Production.
The Delegates of Albania, Belgium. Czechoslo-
JANUARY 27, 1946
123
vakia, Denmark, Egypt, France, Greece, India,
Luxembourg, the Netherlands, Norway and Yugo-
slavia,
In view of the decision of the Crimea Conference
that Germany shall make compensation to the
greatest possible extent for the losses and suffering
which she has inflicted on the United Nations,
Considering that it will not be possible to satisfy
the diverse needs of the Governments entitled to
reparation unless the assets to be allocated are suffi-
cientl}' varied in nature and the methods of alloca-
tion are sufliciently flexible,
Express the hope that no category of economic
resources in excess of Germany's requirements as
defined in Part III, article 15 of the Potsdam Dec-
laration, due account being taken of article 19 of
the same Fart, shall in principle be excluded from
the assets, the sum total of which should serve to
meet the reparation claims of the Signatory Gov-
ernments.
It thus follows that certain sjjecial needs of dif-
feient countries will not be met without I'ecourse,
in particular, to German existing stocks, current
production and services, as well as Soviet recipro-
cal deliveries under Part IV of the Potsdam Dec-
laration.
It goes without saying that the foregoing shall
be without prejudice to the necessity of achieving
tlie economic disarmament of Germanj^
The above-named Delegates would therefore
deem it of advantage were the Control Council to
furnish the Inter-Allied Reparation Agency with
lists of existing stocks, goods from current pro-
duction and services, as such stocks, goods or serv-
ices become available as reparation. The Agency
should, at all times, be in a position to advise the
Control Council of the special needs of the differ-
ent Signatory Governments.
3. Resolution regarding Property in Germany
belonging to United Nations or their nationals.
The Delegates of Albania, Belgium, Czechoslo-
vakia, France, Greece, Luxembourg, the Nether-
lands, Norway and Yugoslavia, taking into ac-
count the fact that the burden of reparation should
fall on the German people, recommend that the
following rules be observed regarding the alloca-
tion as reparation of property (other than ships)
situated in Germany :
(a) To determine the proportion of German
property available as reparation, account shall be
taken of the sum total of property actually consti-
tuting the German economy, including assets be-
longing to a LTnited Nation or to its nationals, but
excluding looted property, which is to be restored.
(h) In general, property belonging legitimately
to a United Nation or to its nationals, wdiether
wholly owned or in the form of a shareholding of
more than 48 percent, shall so far as possible be
excluded from the part of German propei'ty con-
sidered to be available as reparation.
(c) The Control Council shall determine the
cases in which minority shai'eholdings of a United
Nation or its nationals shall be treated as forming
part of the property of a German juridical person
and therefore having the same status as that
juridical j^erson.
( (I) The foregoing provisions do not in any way
prejudice the removal or destruction of concerns
controlled by interests of a United Nation or of its
nationals when this is necessary for security
reasons.
((') In cases where an asset which is the legit-
imate property of one of the United Nations or
its nationals has been allocated as reparation, or
destroyed, particularly in the cases referred to in
paragraphs b, c, and d above, equitable compensa-
tion to the extent of tlie full value of this asset
sjiall be granted by the Control Council to the
United Nation concerned as a charge on the Ger-
man economy. This compensation shall, when
possible, take the form of a shareholding of equal
value in German assets of a similar character
which have not been allocated as reparation.
(/) In order to ensure that the property in
Germany of persons declared by one of the United
Nations to be collaborators or traitors shall be
taken from them, the Control Council shall give
effect in Germany to legislative measures and
juridical decisions by courts of the United Nation
concerned in regard to collaborator's or traitors
who are nationals of that United Nation or were
nationals of that United Nation at the date of its
occupation or annexation by Germany or entry
into the war. The Control Council shall give to
the Government of such United Nation facilities
to take title to and possession of such assets and
to dispose of them.
4. Resolution on captured War Materiel.
The Delegates of Albania, Belgium, Denmark,
Luxembourg, the Netherlands, Norway, Czecho-
slovakia and Yugoslavia, taking account of the
fact that part of the war materiel seized by the
124
DEPARTMENT OF STATE BULLETIN
Allied Armies in Germany is of no use to tliese
Armies but -would, on the other hand, be of use
io other Allied countries recommend:
(a) That, subject to Resolution 1 of this Annex
on the subject of restitution, war material which
was taken in the Western Zones of Germany and
which has neither been put to any use nor destroyed
as being of no value, and which is not needed by
the Armies of Occupation or is in excess of their
requirements, shall be put at the disj^osal of coun-
tries which have a right to receive reparation from
the Western Zones of Germany, and:
(h) That the competent authorities shall deter-
mine the available types and quantities of this
materiel and shall submit lists to the Inter-Allied
Reparation Agency, which shall proceed in ac-
cordance with the provisions of Part II of the
above Agreement.
5. Resolution on German Assets in the Julian March
and the Dodecanese.
The Delegates of Greece, the United Kingdom
and Yugoslavia (being the Delegates of the coun-
tries primarily concerned), agree that:
(ff) The German assets in Vcnezia Giulia (Ju-
lian March) and in tlie Dodecanese shall be taken
into custody by the military authorities in occu-
pation of those parts of the territory which they
now occupy, until the territorial questions have
been decided ; and
(b) As soon as a decision on the territorial
questions has been reached, the liquidation of the
assets shall be undertaken in conformity with the
provisions of Paragraph A of Article 6 of Part I
of the foregoing Agreement by the countries whose
sovereignty over the disiDuted territories has been
recognized.
6. Resolution on Costs relating to Goods Delivered
from Germany as Reparation.
The Delegates of Albania, Australia, Belgium,
Canada, Denmark, Egypt, France, Greece, India,
Luxembourg, Noi-way, New Zealand, the Nether-
lands, Czechoslovakia and Yugoslavia, recommend
that the costs of disnuiutling, packing, transport-
ing, handling, loading and all other costs of a gen-
eral nature relating to goods to be delivered from
Germany as reparation, until the goods in ques-
tion have passed the German frontier, and expendi-
ture inciu-red in Germany for the account of the
Inter-Allied Reparation Agency or of the Dele-
gates of the Agency should, in so far as they are
payable in a currency which is legal tender in
Germany, be paid as a charge on the German econ-
omy.
7. Resolution on the Property of War Criminals.
The Delegates of Albania. Belgium, France,
Luxembourg, Czechoslovakia and Yugoslavia ex-
press the view that :
(r/) The legislation in force in Germany against
German war criminals should provide for the con-
fiscation of the property in Germany of those crim-
inals, if it does not do so already ;
(h) The property so contiscated, except such as
is already available as reparation or restitution,
should be liquidated by the Control Council and the
net proceeds of the liquidation paid to the Inter-
Allied Reparation Agency for division according
to the principles set out in the foregoing Agree-
ment.
8. Resolution on Recourse to the International
Court of Justice.
The Delegates of Albania, Australia, Belgium,
Denmark, France, Luxembourg, the Netherlands,
Norway, Czechoslovakia and Yugoslavia recom-
mend that :
Subject to the jirovisions of Article 3 of Part I
of the foregoing Agreement, the Signatory Gov-
ernments agree to have recourse to the Interna-
tional Court of Justice for the solution of every
conflict of law or of competence arising out of the
provisions of the foregoing Agreement which has
not been submitted by the parties concerned to
amicable solution or arbitration.
Asriciilture in the Americas
The following article of interest to readers of
the BuijjjriN appeared in the December issue
of AuriciiUiire in the Ameritris, a publication of
the Department of Agriculture, copies of which
may be obtained from the Superintendent of
Documents, Government Printing Office, for 10
cents each :
"Brazil's Sugar Industry", by Hubert Maness,
now assistant agricultural economist, American
Embassy, Chungking, and formerly vice consul
at Rio de Janeiro.
JANUARY 21, 1946
125
Ten South American Republic Being Linked by
Pan American Highway '
That part of the Pan American Highway which
lies in South America will, when completed, unite
the 1(1 republics and further the development of
(hat great continent with a route for economic
intercourse as well as for tourist and pleasure
travel through sections of surpassing scenic beauty.
He who would tour in South America is still
obliged to ship his car to some South American
port — La Guaira in Venezuela, for example, or
Turbo in Colombia. From La Guaira he can easily
drive through Venezuela and Colombia and most
of Ecuador. But here again he must make a de-
tour by sea, because of two unfinished gaps in the
road in Ecuador, and he will probably land at
Tumbes in northern Peru.
Now his detour troubles are largely over, for lie
can drive through Peru, largely over an asjihalt
highway, to Chile, througli Chile to Argentina,
and in Argentina over a fine, hard-surfaced high-
way to Buenos Aires. From there good roads lead
to Bolivia, Paraguay, and Brazil or across by ferry
to Ui'uguay.
The motorist in South America has an intimate,
first-hand view of the commercial transportation
of the continent. Beside buses, numerous trucks
loaded with agricultural produce or livestock, oil,
and building materials remind him that many of
the South American countries ai'e not connected
with each other by rail and that even within their
borders the Pan American Highway absorbs much
of the normal railroad traffic.
He will revel also in a great variety of scenic
beauty, as the road climbs from the lush growth
of the tropics some 14,000 feet into the majestic
heights of the Andes, dipping and winding through
mountainous areas of Venezuela, Colombia, and
Ecuador, where it crosses the Equator at 10,000
feet in a fertile, green valley surrounded by glisten-
ing snow peaks.
For almost the entire length of Peru and north-
ern Chile, he can drive with the blue Pacific on
one hand and on the other the narrow coastal
plain, beyond which rise the rhythmic i^eaks of
the Andes. This stretch is passable the year
round, for this is one place in the world without
' Released to the press by the Pan .\meriean Union.
rainfall. The tourist will welcome the refreshing
greenness bordering the many rivers that flow
from the Andes across the desert to the sea. From
Santiago, Chile, the road turns east toward the
mountains again, crossing the Andes at 13,000
feet through magnificent scenes and dropping
again onto the peaceful green Argentine pampas
to Buenos Aires.
Automobile rationing has ended, and new cars
and trucks will begin to ajipear on the highways
of the LTnited States ns fast as they leave the
assembly lines. How soon they will be available
for South America is another question, but it
should not be too many months before they will
swell the volume of traffic on the Pan American
Highway. Meanwhile, highway engineers are
constantly working on elimination of the few re-
maining gaps, while many state-supported tour-
ist bureaus and automobile associations are eagerly
preparing to receive their "good neighbors" in
ever increasing numbers. When cars are ready
for the road, the road — and comfortable stopping
places — will be ready for the cars.
A trip to Cape Horn in the family car is a dream
which shows promise of fulfilment in the not too
distant future. From the Rio Grande to the Co-
lombian border in South America the Pan Ameri-
can Highway is about 70 percent completed for
all-weather driving. On to Buenos Aires, Argen-
tina, it is paved almost straight through.
Right now, you can drive from the United States
border at Laredo, Texas, straight south into Mex-
ico for 1,135 miles. For the next 400 miles, to the
border of Guatemala, there are gaps in the high-
way which, it is expected, will be eliminated by
1947. From this point on through the countries
of Guatemala, El Salvador, Honduras, and Nic-
aragua, the highway is in all-weather shape, with
the exception of a few short detours here and there
during the rainy season.
In Costa Rica, for numerous and complicated
I'easons, the job is still incomplete. Of the 425
miles through that country, only about 300 are
126
DEPARTMENT OF STATE BULLETIN
passable even in dry weather, and a good many
miles are washed out when the rains start. With
the end of tlie war, new machinery and new interest
in the project may combine to speed the work.
In Panama tliere are some very difficult jungle
areas still to be penetrated by the highway, espe-
cially between the Panama Canal and the Co-
lombian border, but here too the probabilities are
for faster jjrogress now.
Within South America there are good roads,
most of them paved, from Bogota, Colombia, to
Buenos Aires. This stretch of some 3,000 miles is
open not only to the citizens of those countries but
also to the American tourist if he ships his car to
South America.
Perhaps the most important role of the highway
is to bind together the peoples of the various re-
publics it ci'osses, improving their economy and
raising living standards. Before the road came
througli, the peoples of the Central American
countries were almost completely isolated from
each other. Once, unbelievable as it seems, when
Costa Rica suffered a shortage of rice she found it
cheaper to import the grain from China than to
get it from her next-door neighbor, Nicaragua, 300
miles away.
The effects of land commvmication on tliese coun-
tries are tremendous. The character of entire
towns along the highway has changed, the road
bringing improved building construction and in-
creased public utilities as well as small stores and
garages all along the route. Today there are elec-
tric refrigerators and modern plumbing in small
village inns preparing to meet the needs of trav-
elers.
The Central American republics need no longer
depend solely on bananas and coffee to support
their economy. Pineapples and cashew nuts,
coconuts and coconut oil, and large quantities of
cacao will be winding over the highway to neigh-
boring countries and to the United States; and
coming back to these primarily agricultural coun-
tries will be the manufactured articles for which
there is constantly increasing demand.
Now that the war has ended, the tourist is again
taking to the roads, and the Pan American High-
way will have a strong appeal. As far back as
1932, when Mexico's paved road ended at Monter-
rey, 175 miles south of the border, 2,000 cars made
the trip from Laredo every weekend. Multiply
that number by thousands, and future motor
traffic on the Pan American Highway can be
roughly gaged.
An eight-page Report on the Present State of
the Pan American Highway in South Ainerica has
been prepared by Maurice E. Gilmore, Acting
Director of the Department of Transportation and
Economic Development, Office of Inter-American
Affairs, Washington, D. C. Copies of the report
majr be obtained from that office.
LONDON BEPOKl—Vontinitcd from pafle 9. ■
eration of Trade Unions for membership in the
Economic and Social Council. Repercussion of
this recjuest was similar to requests from other
international organizations, including the Inter-
national Co-operative Alliance, American Federa-
tion of Labor, and International Federation of
Women.
Most members of the Steering Committee
agreed tluit admission of such organizations
would be a violation of the basic United Nations
Charter. Some were favorably inclined toward
the suggestion made by Assembly President Spaak
that it might be possible for the Economic and
Social Council to work out a system for bringing
these groups into clo.se collaboration. He also
suggested that a special category of "official per-
manent gue.sts" could be set up and that their
opinions could be heard by the General Assembly
at regularly designated times.
Just before Secretary Byrnes left London to
return to Washington late in the week, he summed
up the work already accomplished by the General
Assembly.
"I think the Conference has made splendid
progress", he said. "It is a very difficult thing to
have representatives of 51 nations agree even on
organizational matters. It is particularly grati-
fying to me that in the very first week of the work
of the Organization the Assembly has approved
tlie Atomic Energy Commission idea and got on
with the vital business of the Organization instead
of some unimjiortant administrative resolutions.
I think it will be.heartening to all people to look to
the Organization to see big, important things, in-
stead of small things."
Calendar of Meetings
Far Eastern Commission
Anglo-American Committee of Inquiry
United Nations Organization :
General Assembly
Security Council
Civil Aviation Conference
Council of the United Maritime Authority
International Lal)or Organization :
Conference of Delegates on Constitu-
tional Questions
International Development Works Com-
mittee
International Te<-hnical Committee of
Aerial Legal Experts (CITEJA) :
14th session
International Cotton Study Group: Sub-
committee of the International Ad-
visory Committee
Council of the United Maritime Authority
North American Regional Broadcast En-
gineering Conference
West Indian Conference
Tokyo
London
London
London
Bermuda
London
London
Montreal
Paris
January 6 (continuing in session)
Hearings open on January 25 (hearings
closed in Washington on January 14)
January 10 (continuing in session)
January 17 (continuing in session)
January 15 (continuing in session)
Fel)ruary 4
January 21 (continuing in session)
January 28
January 22 (continuing in session)
Washington
January 24 (continuing in session
London
January 18 (continuing in session)
Washington
February 4
St. Thomas,
Vi
•gin
February 21
Islands
(U.
S.)
Activities and Developments
Far Eastern Commission is meeting in .Tai:)iin at
Kove, after having stayed in Tokyo Bay for about
two weeks. The delegates will return to Tokyo
on January 31 at which time they will talk with
General MacArthur before sailing for Pearl Har-
bor on February 2. It is exjiected that the Com-
mission will return to Washington about Feb-
ruary 15.
France, Canada, and India have accepted the
invitation to join the commission and information
has been received from the Union of Soviet So-
cialist Republics that Lt. Gen. K. N. Derevyanko
has been named as the Soviet representative to the
Allied Council; his alternate will be Y. A. Malik,
former Soviet Ambassador to Japan ; Peter Victor
Anurov will serve as Mr. Malik's alternate; and
L. A. Eazin has been named Soviet economic ad-
viser. The Soviet Delegation is leaving Moscow
for Tokyo immediately.
Providing for the Furnishing of Information and
Assistance to the Joint Anglo- American Committee
of Inquiry on Jewish Problems in Palestine and
Europe ^
Whereas by an exchange of notes on December
10, 1945, between the Secretary of State of the
' Ex. Or. 9682 (11 Federal Register 787).
727
128
DEPARTMENT OF STATE BULLETIN
United States and the British Ambassador there
has been created a joint Anglo-American Commit-
tee of Inquiry (hereinafter referred to as the Com-
mittee), whose terms of reference are as follows:
1. To examine political, economic and social con-
ditions in Palestine as they bear upon the problem
of Jewish immigration and settlement therein and
the well-being of the peoples now living therein.
2. To examine the position of the Jews in those
countries in Europe where they have been the vic-
tims of Nazi and Fascist persecution, and the
practical measures taken or contemplated to be
taken in those countries to enable them to live free
from discrimination and oppression, and to make
estimates of those who wish, or will be impelled by
their conditions, to migrate to Palestine or other
countries outside Euroj^e.
3. To hear the views of competent witnesses and
to consult I'epresentative Arabs and Jews on the
problems of Palestine as such problems are aft'ected
by conditions subject to examination under para-
graphs 1 and 2 above and by other relevant facts
and circumstances, and to make recommendations
to the Governments of the United States and of
the United Kingdom for ad 'Interim handling of
these problems as well as for their permanent
solution.
4. To make such other reconnnendations to the
Governments of the United States and of the
United Kingdom as may be necessary to meet the
immediate needs arising from conditions subject to
examination under paragrapli 2 above, by reme-
dial action in the European countries in question
or by the provision of facilities for emigration to
and settlement in countries ovitside Europe;
And whereas the Goveriunent of the United
States is desirous of rendering all possible aid to
the Committee to enable it properly to perform the
task entrusted to it :
Now THEREFORE, by virtuc of the authority
vested in me by the Constitution and the statutes,
and as President of the United States and Com-
mander in Chief of the Army and Navy of the
United States, it is hereby ordered as follows:
1. All departments, agencies, and independent
establishments of the Executive branch of the
Federal Government .shall furnish to the Connnit-
tee, upon the request of the American Chairman
of the Committee, such of their records and docu-
ments as relate to the subjects referred to the Com-
mittee for examination and study under its several
terms of reference : Provided, hovreverjthat a de-
partment, agency, or independent establishment
shall not be requii'ed to disclose confidential rec-
ords and documents the disclosure of which would
be prejudicial to the interests of the United States :
Provided further, that in all such cases, the head
of the department, agency, or independent estab-
lishment concerned shall furnish the American
Chairman of the Conniiittee with a statement jus-
tifying the withholding of the records and docu-
ments requested by him.
2. Any officer or employee of an Executive de-
partment, agency, or independent establishment
of the Government possessing personal informa-
tion or knowledge relating to the .subjects referred
to the Committee for examination and study under
its several terms of reference, may, upon the re-
quest of the American Chairman of the Commit-
tee and with the approval of the head of the de-
partment, agency, or independent establishment
cfincerned, furnish such information or knowledge
to the Connnittee either orally or in writing, as
shall in each case appear to be desirable.
3. The Secretary of State may assign or detail
officers and employees of the Department of State,
including officers and employees of the Foreign
Service of the United States, for service with the
American members of the Committee.
4. The head of any department, agency, or in-
dependent establi.'^hment of the Government may,
upon request of the Secretary of State, detail or
assign officers and employees of his department,
agency, or independent establishment for sei-vice
with the American members of the Committee.
6. The Secretary of War and the Secretary of
the Navy are authorized to provide appropriate
assistance including the furnishing of available
Government-owned motor transportation and
other Government-owned and operated facilities
which can be spared to enable the Committee prop-
erly to perform the tasks entrusted to it.
6. The Secretary of State may, in order to effect
the purposes of this order, and in conformity with
exi.sting law, delegate to one or more responsible
officers of the Department of State the authority
vested in him by this order.
Harry S. Truman
The White House,
January IS, 1946.
The Record of the Week
American Group To Observe
Elections in Greece
[Released to the press January 14]
In fulfilment of the resiDonsibilities undertaken
by this Government at Yalta, and in response to
the invitation of the Greek Government for Allied
observation of Greek elections, the President ap-
pointed Henry F. Grady as his representative,
with the personal rank of Ambassador, to head
the American group to observe those elections in
collaboration with representatives of Great Brit-
ain and France.^ In November Ambassador
Grady visited London for preliminary consulta-
tions with the British and French representatives,
who subsequently accompanied him to Athens for
conferences with the Greek authorities. During
this visit the Greek Government reiterated its
desire for Allied observation and fixed the date of
March 31, 1946 for the elections.
The President has now announced the appoint-
ment of the following members of the United
States mission, with the personal rank of Min-
ister:- Harrj' J. ilalony. Major General, U.S.A.;
Joseph Coy Green, Adviser to the Secretai-y of
State; Walter H. Mallory, executive director,
Council on Foreign Relations; James Gi^afton
Rogers, lawyer and educator, former Assistant
Secretary of State; William W. AVaymack, editor
of the Des Moines Register and Tribune; Herman
B. Wells, President of Indiana University.
The members of the mission are now assembled
in AVashington for the mission's initial meetings,
scheduled for January 14 and 15.
The mission will be assisted in carrying out the
observation by a civilian secretariat and advisory
staff of approximately 80 persons and by a mili-
tary staff numbering about .500 persons.
Appointments to the principal positions on the
civilian staff include:
Technical Advif^crs: Sarah Wambaugh, author
and lecturer, authority on plebiscites. Technical
Adviser and Deputy Member of Saar Plebiscite
Commission; S. Shepard Jones, Assistant Chief,
Division of Public Liaison, Department of State;
Raymond J. Jessen, Bureau of Agricultural Eco-
nomics, Statistical Laboratory, Iowa State Col-
lege; J. Arnold King, Bureau of Agricultural
Economics, Statistical Laboratory, Iowa State
College.
Special Assistant to the Chief of the Mission:
James Hugh Keeley, Foreign Service officer.
Secretary General: Foy D. Kohler, Foi'eign
Service officer.
Aibninistratire Officer: William Barnes, For-
ign Service officer.
Interpreters Section : Jay S. Seeley, former in-
structor, Anatolia College, Salonika, Greece;
Commander Robert B. Kleinhaus, U.S.N.R.,
former instructor, Athens College, Athens.
Indoctrination and Reports Section: Carl W.
Blegen, professor, University of Cincinnati, cul-
tural-relations attache, Athens; Shirley H. AVeber,
professor, American School of Classical Studies,
director of the Gennadius Library, Athens; Frank
E. Bailey, professor, Mount Holyoke College.
District Secretaries: Jack Curts, former in-
structor, Athens College, Athens, Labor Rela-
tions Officer, Legal Division, Office of Chief of
Engineers, AVar Department ; James F. Clarke,
Office of International Information and Cultural
Aft'airs, Department of State; Sherman AVallace,
Chief of Southeast Europe Section, Strategic
Services Unit, War Department ; Raymond Bax-
ter, former executive of the Foreign Economic
Administration in North Africa and in Greece;
Donald C. Bergus, Foreign Service officer.
By direction of the President ^ the State and
War Departments are collaborating closely in the
organization of the mission and are receiving the
assistance of the Navy Department and other exec-
utive branches of the Government. General
Malony, as principal representative of the War
Department, will be in chai-ge of the military per-
sonnel constituting the observation teams and
handling the physical arrangements of the mis-
sion, which will be largely self-sufficient as regards
supply, transportation, and communications. The
' Bulletin of Oct. 21, 194.5, p. 611.
- Bulletin of Jan. 20. 1946, p. 56.
' Ex. Or. 9657 of Nov. 16, 1945 ; for text, see Bulletin
of Nov. 18, 1915, p. 792 ; 10 Federal Register 14243.
129
130
DEPARTMENT OF STATE BULLETIN
assignments to the principal positions on the mili-
tary staff follow :
Chief of Staif: Col. Julian E. Riiymoiul. Inf.
District. Commanders: Col. Earle A. Johnson,
Inf. ; Col. Albert J. Hastings. F. A. ; Col. Robert
H. Stumpf, Inf.; Col. John T. English, Inf.;
Colonel Gray.
Naval Air Commander: Lt. Commander Charles
A. Merryman, U.S.N.
It lias been agreed among the participating gov-
ernments that the three national groups will be
organized into an Allied Mission To Observe the
Greek Elections and that the observation will be
conducted as a combined Allied operation. The
United States and British Governments will eacli
furnisli 100 and the French about 40 mobile obser-
vation teams, each consisting of a military officer
and enlisted man and a Greek interpreter, equipped
with a jeep and trailer. During a period of three
weeks prior to election day these teams will inspect
and report on the status of the electoral registers
and of the provisions made for the election. On
election daj' the teams will be sent to a sufficient
number of representative polling places through-
out Greece to give a valid sample of the effective-
ness and integrity of the polling.
The pattern of observation will be worked out
by a staff of sampling and statistical experts.
The operation will be carried out through a
Combined Central Office in Athens and Combined
District Offices in Athens, Salonika, Patras, Tri-
polis, and Herakleion, all headed by members of
the three Allied missions. Specific areas will not
be assigned to the representatives of the three dif-
ferent nations, but American, British, and French
teams will be interspersed, one team to each selected
polling place.
Mission personnel will observe the election proc-
ess and will not interfere in any way. In the event
of disturbances, observers will avoid becoming in-
volved and will simply report the facts to the
appropriate officers of the Mission. Military per-
sonnel will in no sense be in Greece for military
purposes. All Allied staff members will wear dis-
tinctive personal identification in the form of
shoulder patches for military personnel and bras-
sards for civilians.
A group of members of the Interpreters Section
of the United States mission, headed by Mr. Seeley,
is now en route to Greece to join with British col-
leagues in selecting the 200 or more Greek-English
interpreters to be emj^loyed by the Mission. An-
otlier group from the civilian and military staffs,
headed by Mr. Keeley, is now in London consulting
with British and French representatives and elab-
orating tlie plans for the combined observation
operation. Other groups, particularly the techni-
cal advisers and central and district office staffs,
will proceed to Greece in the near future to under-
take the necessary advance studies and plans and
to make advance airangements for offices and
quarters and for supplies.
Personnel of the three Allied contingents will be
assembled in the Naples area of Italy in mid-Feb-
ruary for a period of indoctrination and training
before proceeding to Greece to begin the observa-
tion early in March.
Expansion of Food and Live-
stock Products in Caribbean
Area
[Released to the press January 15]
Expansion in production of food crops and
livestock jiroducts in the Caribbean area is pro-
posed by the Governments of the United States
and Great Britain. It is felt that the area is suited
for an increased production of certain agricultural
products needed for a more adequate and better
balanced nutrition of the people. This is one point
of a 30-point program for the economic develop-
ment of the United States and British territories
in the Caribbean made public on January 14 in a
I'eport issued in Washington and London.
The joint pronouncement is based upon the rec-
ommendations of the first West Indian Conference
held in Barbados last year under the auspices of
the Anglo-American Caribbean Commission. This
Conference, in which the delegates were themselves
representatives of the peoples of the area, recom-
mended action by the home Governments on seven
general subjects: local food production; expansion
of fisheries; reabsoriJtion into civil life of persons
engaged in war employment ; planning of public
works for the improvement of agriculture, educa-
tion, housing, and public health; health protection
and quarantine; industrial development; and pos-
sibilities of expansion of the Caribbean Research
Council.
The joint statement is the result of a series of
conversations between American and British offi-
cials and of special studies made by the two Gov-
ernments.
JANUARY 27, 1946
131
Transfer of Japanese Property
[Released to the press January 18]
Supplementing the Department of State's press
release of December 20, 1945 ^ and with specific
reference to paragraph five thereof concerning
the contemplated release to the United States Gov-
ernment of Japanese consular premises and ar-
chives and other property in the Territory of Ha-
waii, the Department of State announced that this
transfer was accomplished on January 18 by means
of a protocol signed jointly by Col. Erik de Laval,
Counselor, Legation of Sweden at Washington,
and Thomas F. Fitch, Chief Special Agent, De-
partment of State.
The relinquishment of the custody of this j^rop-
erty by the Swedish Government was in accord-
ance with instructions given by the Japanese Gov-
ernment, based upon a directive issued by General
MacArthur on October 25, 1945.
The representation of Japanese interests in the
Territory of Hawaii from the outbreak of the war
with Japan has been in the hands of the Swedish
Government. The handling of this work has been
the special resiDonsibility of Colonel de Laval as
Chief of the Department of Japanese Interests of
the Legation, through the agency of the Swedish
Consulate at Honolulu.
It is expected that a portion of the former Jap-
anese consular premises at Honolulu will continue
for the present to be occupied by the Swedish vice
consul in connection with the protection of the in-
terests of individual Japanese nationals in the
Territory of Hawaii.
Assistance for American
Correspondents Reporting
UNRRA Activities Abroad
[Released to tlie press .Taiinary 17]
A request to facilitate reporting by American
press and radio representatives in areas receiving
UNRRA assistance has been forwarded to nine
governments by Acting Secretary of State Dean
Acheson.
The aide-memoire were despatched in accord-
ance with Public Law 2C2, approved December 18,
1945, in which Congress requested the President,
through appropriate channels, to assist American
l^ress and radio correspondents in their reporting
of UNRRA activities abroad.
The aide-memoire inform the governments of the
recommendations of Congress. They request that.
in the interest of better understanding between our
peoples, aiJjjropriate measures be taken to assure
that properly accredited representatives of the
American press and radio are able to investigate
and report fully without censorship on the util-
ization and distribution of UNRRA supplies and
services.
It is requested further that the Department of
State be informed of the measures taken so that it
may report them to Congress.
The aide-memoire have been sent to Albania,
China, Czechoslovakia, Greece, Italy, Poland, the
Union of Soviet Socialist Republics, and Yugo-
slavia.
Contributions to UNRRA
I Kele.ised to the press by UNRR.\ January 12]
A total of $3,011,942,710 had been paid or
pledged to UNRRA by its 47 member nations as
of December 31, 1945. Included in this total are
authorizations of $1,722,0G9,3G9 representing the
second contributions by four of the non-invaded
countries^ — the United States, the United King-
dom, Canada, and the Dominican Republic. The
United Kingdom and the Dominican Republic
have made available as their second contributions
$302,250,000 and $1,050,000 respectively. The
United States has appropriated $750,000,000 of the
second $1,350,000,000 authorized by Congress, and
Canada has made available $22,522,522 of its sec-
ond-contribution authorization of $69,369,369.
Thirty of the 31 non-invaded member govern-
ments of UNRRA have paid or pledged payments
on the first contributions requested for UNRRA.
Negotiations are in progress with the one remain-
ing government.
Under resolutions adopted by the UNRRA
Council, invaded nations are asked to contribute
only to the admmistrative-expense fund. Of the
16 invaded nations, 12 have paid their adminis-
trative contributions in full, 2 have paid more
than half of their allocations, aiid the remaining
2, recently admitted to UNRRA membership,
have not yet been formally requested to make ad-
ministrative contributions, since determination of
their contribution will be made at the next meet-
ing of the UNRRA Council.
The following table shows contributions author-
ized or in process by each of the 47 UNRRA mem-
ber governments as of December 31, 1945 :
1 Bulletin of Dec. 23, 1945, p. 1022.
132
Contributions of UNRRA Member Govern-
ments Authorized or in Process as of Decem-
ber 31, 1945
(In U. S. dollar equivalents)
Country
Total contri- Paid or made t„ „„„„--
hutions availabli. "' Process
Non-invaded countrie:^ (making
both operntiiig and adminiMra-
tire eonlribuUnn^):
Australia
Bolivia ... . . .
Brazil
Canada'
Chile
Colombia
Costa Rica
Cuba
Dominican Republic ' .
Ecuador
Egypt
El Salvador
Guatemala
Haiti
Honduras
Iceland
India
Iran
Iraq
Liberia
Mexico
New Zealand ....
Nicaragua
Panama
Paraguay
Peru
Union of South Africa
United Kingdom ' . .
United States >. . . .
Uruguay
Venezuela .....
Invaded countries (making ad-
ministrative contributions only):
Belgium
China
Czechoslovakia
Denmark
Ethiopia
France
Greece
Lii.xembourg
Netherlands
Norway
Philippines
Poland
Union of Soviet Socialist Re-
publics '
Yugoslavia
Total .
$38, 400. 000
95, 238
30, 000, 000
138, 738, 738
2, 153, 312
2. 356, 493
100, 000
6, 03.5, 000
1,400,000
1.50.000
4, 255, 833
128,750
! 8, 750
48, 750
58, 7.50
717,975
24, 042, 072
325, 100
218, 250
13. 750
3, 601. 500
8, 476, 000
128, 750
408, 750
38, 449
1. 000, 000
18, 135, oon
624, 650, 000
2, 700, 000, 000
. 620, 000
1, 017, 500
175, 000
875, 000
176, 000
18, 750
8,750
700.000
87, 500
8, 750
262, 500
52,500
8, 750
176, 000
1,750,000
122, .500
$3,611,942,710
$38, 400, 000
31,746
10. 000, 000
91, 891, 891
2, 365, 994
35,000
1, 400, 000
70. 000
6,000
! 8, 7.50
48, 750
68, 750
717, 975
24, 042, 072
17,600
13,760
1, 148, 000
8, 476, 000
125, 000
142,083
9,890
792, 692
5, 137. 600
621, 660. 000
I, 100, 000, 000
505. 000
350, 833
17.5.000
875,000
176, 000
18, 750
8,750
700,000
87. 600
8,760
262. .500
52, .500
8,750
100, 000
1, 000, 000
122, 500
$63, 492
20, 000, 000
46, 846, 847
2, 153, 312
499
400,000
6, 000, 000
160,000
4, 186, 833
123, 7.50
325, 100
200, 750
2, 453, 600
3,750
266, 667
28.550
207, 308
12,997,500
600. 000. 000
15, 000
666, 667
75. 000
$2, 914, 029, 1,S5
$697, 913, 626
' Non-invaded country which has authorized both first and second con-
tributions.
2 Administrative contribution only: negotiations in process for operating
contribution.
3 Includes Byelorussian and Ukrainian Soviet Socialist Republics.
DEPARTMENT OF STATE BULLETIN
Revocation of the Proclamation
Svispending the International Load
Lines Convention in Ports and Waters
of the Lnited States'
By the Peesident of the United States of Amekica
A PROCLAMATION
Whi'.iu'L^s by Proclaiiuiriiui No. 2500," dated August 9,
1941, the President declared and proclaimed the Inter-
national Load Lines Convention, signed by the respec-
tive lilenipotentiaries of the United States of America and
certain other countries at London on July 5, 1930, sus-
pended and inoperative in the jiorts and waters of the
United States of America, and in so far as the United
States of America was concerned, for the duration of the
existing emergency; and
Whereas it appears that the continued suspension of the
said International Load Lines Convention is no longer
necessary or desirable:
Now. Therefokb. I, Hai!ry S. Truman. President of the
United States of America, do <leclare and pi'oclaim that tlie
said Proclamation No. 2500, dated August 9, 1941, is hereby
revoked, effective as of January 1, 1946.
In Witness Whekeof, I have hereunto set my hand and
caused the seal of the United States of America to be
affixed.
Done at the City of Washington this 21st day of Decem-
ber in the year of our Lord nineteen hundred
[.seal] and forty-five and of the Independence of the
United States of America the one hundred and
seventieth.
Harrt S. Truman
By the President :
Dean Aoheson,
Acting Secretary of State.
Letters of Credence
MINISTER OF HUNGARY
The newly apiwinted Minister of Hungary, Aladar
Szegedy-Maszak, presented liis letters of credence to the
President on January 18. For text of remarks on the
occasion of the presentation of liis cre<Ientials and reply
by the President .see Department of State press release 44.
The Foreign Service
Consular Offices
The American Consulate at Beira, Portuguese East
Africa, was closed on November 30, 1945.
' Proclamation 2675 (10 Federal Register 15365).
- Bulletin of Aug. 9, 1941. p. 114.
PUBLISHED WITH APPROVAL OF DIRECTOR OF BUREAU OF THE BUDGET
U. S. GOVERNMENT PRINTING OFFICE: 1946
THE DEPARTMENT OF STATE
VOL. XIV, NO. 344
FEBRUARY 3, 1946
State of the Union
PEESIDENT'S MESSAGE TO CONGKESS
General Assembly of the United Nations
CONTEOL OP ATOMIC ENEEGY: STATEMENT BY TEE SECKETAEY OF STATE
EEPORT FROM LONDON
Freedom of the Press — World-Wide
By ASSISTANT SECRETAEI BENTON and PAUL PORTER
Philippine Foreign Affairs Training Program
By EDWARD W. MILL
Wheat and Coal for Liberated Areas
By JAMES A. STILLWELL
Vl^NT o^
For complete contents
see inside cover
THE DEPARTMENT OF STATE
BULLETIN
Vol. XIV •No. 344*
* Publication 2158
""■*TS9 f*
February 3, 1946
For sale by the Superintendent of Documente
U. S. Government Printing Office
Wasbington 25, D. C.
Subscription:
52 iBBuce, $3.50; single copy, 10 centB
Special offer: 13 weeks for Sl.OO
{renewable only on yearly basie)
The Department of State BULLETIN,
a tceekly publication compiled and
edited in the Division of Research and
Publication, Office of Public Affairs,
provides the public and interested
agencies of the Government with
information on developments in the
field of foreign relations and on the
work of the Department of State and
the Foreign Service. The BULLETIN
includes press releases on foreign
policy issued by the White House and
the Department, and statements and
addresses made by the President and
by the Secretary of State and other
officers of the Department, as well as
special articles on various phases of
international affairs and the functions
of the Department. Information con -
cerning treaties and international
agreements towhich the United States
is or may become a party and treaties
of general international interest is
included.
Publications of the Department, cu-
mulative lists of which are published
at the end of each quarter, as well as
legislative material in the field of inter-
national relations, are listed currently.
Contents
The State of the Union. page
The President's Message to the Congress .... 135
General Assembly of the United Nations:
Statement by the Secrei.ary of State on Control of
Atomic Energy 146
Report From London to the Office of Public
Affairs, Department of State 147
Philippine Foreign Affau-s Trainmg Program. By
Edward W. Mill 148
Procedm-e and Principles Involved in Individual
Trusteeship 150
Wheat Shipments to Liberated Areas.
Dh-ective From the President 151
Wheat and Coal for Liberated Areas.
Article by James A. StiUwell 152
*British-Greek Fmancial Agreement.
Statement by the Secretary of State 155
Administration of Korea 155
Freedom of the Press — World-Wide 156
Future of the Foreign Service. By Selden Chapin . 163
International Organizations and Conferences
Calendar of Meetings 169
Activities and Developmenls:
International Teclinical Committee of Aerial Legal Experts . 169
North American Regional Broadcasting Engineering Con-
ference 170
*Civil-Aviation Agreements: Paraguay, Nicaragua, Tur-
key 171
The Record of the Week
Advisory Group To Prepare Recommendations on Mass
Communications 172
Anglo-Soviet-American Communique on the Disposal of the
German Navy 173
Program for Supplying Raw Materials to Germany and Japan
Clarified 173
Coordination of Foreign Intelligence Activities. Directive
From the President 174
U.S. — Greek Negotiation on Expansion of Production and
Employment. Exchange of Notes Between the Govern-
ments of the United States and Greece 175
*Reconsideration of Quotas on Silver-Fox Furs 176
Appointment of Board of Consultants on Atomic-Energy
Committee 177
Appointment of U. S. Political Representative to Austrian
Government 177
Approval of Designation of Austrian Representative in U. S. . 177
♦International Agreements With Siam Continue in Force.
Statement by Acting Secretary Acheson 178
Special International Textile Group Leaves for Japan .... 178
♦Research Fellowship in Agriculture 179
Resumption of Travel Grants for Study in Other American
Republics 179
♦Transmittal of Protocol to Inter-American Coffee Agree-
ment 180
The Department
Appointment of Officers; Division of Investigations .... 180
• Treaty iuformation.
(i. --. -j::,.:,-rrEWDErjT of DocuME^rs
MAR 19 1946
The State of the Union
THE PRESIDENT'S MESSAGE TO THE CONGRESS
I. FROM WAR TO PEACE— THE YEAR OF DECISION
In his last Message on the State of the Union,
delivered one year ago, President Roosevelt said :
''This new year of 1945 can be tlic greatest year
of achievement in human history.
"1945 can see the final ending of the Nazi-
Fascist reign of terror in Europe.
"1945 can see the closing in of the forces of
retribution about the center of the malignant
power of imperialistic Japan.
"Most important of all — 1945 can and must see
the substantial beginning of the organization of
world peace."
All those hopes, and more, were fulfilled in the
year 1945. It was the greatest year of achieve-
ment in human history. It saw the end of the
Nazi-Fascist terror in Europe, and also the end
of the malignant power of Japan. And it saw
the substantial beginning of world organization
for peace. These momentous events became reali-
ties because of the steadfast purpose of the United
Nations and of the forces that fought for free-
dom under their flags. The plain fact is that
civilization was saved in 1945 by the United
Nations.
Our own part in this accomplishment was not
the product of any single service. Those who
fought on land, those who fought on the sea, and
those who fought in the air deserve equal credit.
They were supported by other millions in the
armed forces who through no fault of their own
could not go overseas and who rendered in-
dispensable service in this country. They were
supported by millions in all levels of government,
including many volunteers, whose devoted public
service furnished basic organization and leader-
ship. They were also supported by the millions of
Americans in private life — men and women in in-
dustry, in commerce, on the farms, and in all man-
ner of activity on the home front — who contrib-
uted their brains and their brawn in arming,
equipping, and feeding them. The country was
brought through four years of peril by an effort
that was truly national in character.
Everlasting tribute and gratitude will be paid
by all Americans to those brave men who did not
come back, who will never come back — the 330,000
who died that the Nation might live and progress.
All Americans will also remain deeply conscious
of the obligation owed to that larger number of
soldiers, sailors, and marines who suffered wounds
and sickness in their service. They may be cer-
tain that their sacrifice will never be forgotten or
their needs neglected.
The beginning of the year 1946 finds the United
States strong and deservedly confident. We have a
record of enormous achievements as a democratic
society in solving problems and meeting oppor-
tunities as they developed. We find ourselves
possessed of immeasurable advantages — vast and
varied natural resources; great plants, institu-
tions, and other facilities ; unsurpassed technologi-
cal and managerial skills ; an alert, resourceful, and
able citizenry. We have in the United States Gov-
ernment rich resources in information, perspec-
tive, and facilities for doing whatever may be
found necessary to do in giving support and form
to the widespread and diversified efforts of all our
people.
And for the immediate future the business pros-
pects are generally so favorable that there is danger
of such feverish and opportunistic activity that
our grave postwar problems may be neglected.
We need to act now with full regard for pitfalls ;
we need to act with foresight and balance. We
Excerpts from the President's Message on the State
of the Union and Transmitting the Budget, dated Jan. 14
and released to the press by the White House on the
same date.
135
136
DEPARTMENT OF STATE BULLETIN
should not be lulled by the immediate alluring
prospects into forgetting the fundamental com-
plexity of modern affairs, the catastrophe that can
come in this complexity, or the values that can be
wrested from it.
But the long-range difficulties we face should no
more lead to despair than our inunediate business
prospects should lead to the optimism which
comes from the present short-range prospect. On
the foundation of our victory we can build a last-
ing peace, with greater freedom and security for
mankind in our country and throughout the world.
We will more certainly do this if we are constantly
aware of the fact tliat we face crucial issues and
prepare now to meet them.
To achieve success will require both boldness in
setting our sights and caution in steering our way
on an uncharted course. But we have no luxury of
choice. We must move ahead. No return to the
past is possible.
Our Nation has always been a land of great op-
portunities for those people of the world who
sought to become part of us. Now we have become
a land of great responsibilities to all the people
of all the world. We must squarely recognize and
face the fact of those responsibilities. Advances
in science, in communication, in transportation,
have compressed the world into a community. The
economic and political health of each member of
the world community bears directly on the eco-
nomic and political health of each other member.
The evolution of centuries has brought us to a
new era in world history in which manifold rela-
tionships between nations must be formalized and
developed in new and intricate ways.
The United Nations Organization now being
established represents a minimum essential begin-
ning. It must be developed rapidly and st<?adily.
Its work must be amplified to fill in the whole pat-
tern that has been outlined. Economic collabora-
tion, for example, already charted, now must be
cai-ried on as carefully and as comprehensively as
the political and security measures.
It is important that the nations come together
as States in the Assembly and in the Security
Council and in the other specialized assemblies and
councils that have been and will be arranged. But
this is not enough. Our ultimate security requires
more than a process of consultation and com-
promise.
It requires that we begin now to develop the
United Nations Organization as the representa-
tive of the world as one society. The United Na-
tions Organization, if we have the will adequately
to staff it and to make it work as it should, will
provide a great voice to speak constantly and
responsibly in terms of world collaboration and
world well-being.
There are many new responsibilities for us
as we enter into this new international era. The
whole power and will and wisdom of our Gov-
ernment and of our people should be focused to
contribute to and to influence international ac-
tion. It is intricate, continuing business. Many
concessions and adjustments will be required.
The spectacular progress of science in recent
years makes these necessities more vivid and ur-
gent. That progress has speeded internal devel-
opment and has changed world relationships so
fast that we must realize the fact of a new era.
It is an era in which affairs have become complex
and rich in promise. Delicate and intricate rela-
tionships, involving us all in countless ways, must
be carefully considered.
II. THE FEDERAL PROGRAM
International Affairs
1. Foreign Policy
The year 1945 brought with it the final defeat
of our enemies. There lies before us now the
work of building a just and enduring peace.
Our most immediate task toward that end is
to deprive our enemies completely and forever
of their power to start anotlier war. Of even
greater impoi'tance to the preservation of inter-
national peace is the need to preserve the war-
time agreement of the United Nations and to
direct it into the ways of peace.
Long before our enemies surrendered, the
foundations had been laid on which to continue
this unity in the peace to come. The Atlantic
meeting in 1941 and the conferences at Casa-
blanca, Quebec, Moscow, Cairo, Tehran, and
Dumbarton Oaks each added a stone to the
structure.
Early in 1945, at Yalta, the three major pow-
ers broadened and solidified this base of under-
standing. There fundamental decisions were
reached concerning the occupation and control
of Germany. There also a formula was arrived
at for the interim government of the areas in
Europe which were rapidly being wrested from
Nazi control. This formula was based on the
FEBRUARY 3, 1946
I^olicy of the United States that people be per-
mitted to choose their own form of government
by their own freely expressed choice without in-
terference from any foreign source.
At Potsdam, in July 1945, Marshal Stalin,
Prime Ministers Cliurchill and Attlee, and I met
to exchange views primarily with respect to Ger-
many. As a result, agreements were reached
whicli outlined broadly the policy to be executed
by the Allied Control Council. At Potsdam there
was also established a Council of Foreign Minis-
ters which convened for the first time in London
in September. The Council is about to resume
its primary assignment of drawing up treaties
of peace with Italy, Eumania, Bulgaria, Hun-
gary, and Finland.
In addition to these meetings, and in accordance
with the agreement at Yalta, the Foreign Minis-
ters of Great Britain, the Soviet Union, and the
United States conferred together in San Francisco
last sjjring, in Potsdam in July, in London in Sep-
tember, and in Moscow in December. These meet-
ings have been useful in promoting understanding
and agreement among the three governments.
Simply to name all the international meetings
and conferences is to suggest tlie size and complex-
ity of the undertaking to jirevent international
war in which the United States has now enlisted
for the duration of liistory.
It is encouraging to Isnow that the common effort
of the United Nations to learn to live together did
not cease with the surrender of our enemies.
Wlien difficulties arise among us, the United
States does not propose to remove them by sacri-
ficing its ideals or its vital interests. Neither do
we pi-opose, however, to ignore the ideals and vital
interests of our friends.
Last February and March an Inter-American
Conference on Problems of War and Peace was
held in Mexico City. Among the many significant
accomplishments of that Conference was an under-
standing that an attack by any country against
any one of the sovereign American republics would
be considered an act of aggression against all of
them; and that if such an attack were made or
threatened, the American republics would decide
jointly, through consultations in which each re-
public has equal representation, what measures
they would take for their mutual protection. This
agreement stipulates that its execution shall be in
full accord with the Charter of the United Nations
Organization.
137
The first meeting of the General Assembly of
the United Nations now in progress in London
marks the real beginning of our bold adventure
toward the preservation of world peace, to which
is bound the dearest hope of men.
We have solemnly dedicated ourselves and all
our will to the success of the United Nations Or-
ganization. For this reason we have sought to in-
sure that in the peacemaking the smaller nations
shall have a voice as well as the larger states. The
agreement reached at Moscow last month preserves
this opjjortunity in the making of peace with Italy,
Rumania, Bulgaria, Hungary, and Finland. The
United States intends to preserve it when the
treaties with Germany and Japan are drawn.
It will be the continuing policy of the United
States to use all its influence to foster, support,
and develop the United Nations Organization
in its i^urpose of preventing international war.
If peace is to endure it must rest upon justice no
less than upon power. The question is how jus-
tice among nations is best achieved. We know
from day-to-day experience that the chance for
a just solution is immeasurably increased when
everyone directly interested is given a voice.
That does not mean that each must enjoy an
equal voice, but it does mean that each must be
heard.
Last November, Prime Minister Attlee, Prime
Minister Mackenzie King, and I announced our
proposal that a commission be established within
the framework -of the United Nations to explore
the problems of effective international control of
atomic energj'.
The Soviet Union, France, and China have
joined us in the purpose of introducing in the
General Assembly a resolution for the establish-
ment of such a commission. Our earnest wish is
that the work of this commission go forward care-
fully and thoroughly, but with the greatest dis-
patch. I have great hope for the development
of mutually effective safeguards which will permit
the fullest international control of this new
atomic force.
I believe it possible that effective means can
be developed through the United Nations Organi-
zation to prohibit, outlaw, and prevent the use
of atomic energy for destructive purposes.
The power which the United States demon-
strated during the war is the fact that underlies
every phase of our relations with other countries.
We cannot escape the responsibility which it
138
DEPARTMENT OF STATE BULLETIN
thrusts upon us. What we think, plan, say, and
do is of profound significance to the future of
every corner of the world.
The great and dominant objective of United
States foreign policy is to build and preserve a
just peace. The peace we seek is not peace for
twenty years. It is permanent peace. At a time
when massive changes are occurring with light-
ning speed throughout the world, it is often diffi-
cult to perceive how this central objective is best
served in one isolated com^jlex situation or an-
other. Despite this very real difficulty, there are
certain basic propositions to which the United
States adheres and to which we shall continue
to adhere.
One proposition is that lasting peace requires
genuine understanding and active cooperation
among the most powerful nations. Another is
that even the support of the strongest nations
cannot guarantee a peace unless it is infused
with the quality of justice for all nations.
On October 27, 1945, I made, in New York
City, the following public statement of my under-
standing of the fundamental foreign policy of the
United States. I believe that policy to be in
accord with the opinion of the Congress and of
the people of the United States. I believe that
that policy carries out our fundamental objectives.
"1. We seek no territorial expansion or selfish
advantage. We have no plans for aggression
against any other state, large or small. We have
no objective which need clash with the peaceful
aims of any other nation.
"2. We believe in the eventual return of sov-
ereign rights and self-government to all peoples
who have been deprived of them by force.
"3. We shall approve no territorial changes in
any friendly part of the world unless they accord
with the freely expressed wishes of the people
concerned.
"4. We believe that all peoples who are pre-
pared for self-government should be permitted
to choose their own form of government by their
own freely expressed choice, without interference
from any foreign source. That is true in Euroi^e,
in Asia, in Africa, as well as in the Western
Hemisphere.
"5. By the combined and cooperative action of
our war allies, we shall help the defeated enemy
states establish peaceful democratic governments
' Bulletin of Oct. 28, 19-15, p. 654.
of their own free choice. And we shall try to at-
tain a world in which nazism, fascism, and mili-
tary aggression cannot exist.
"6. We shall refuse to recognize any govern-
ment imposed upon any nation by the force of
any foreign power. In some cases it may be im-
possible to prevent forceful imposition of such a
government. But the United States will not
recognize any such government.
"7. We believe that all nations should have the
freedom of the seas and equal rights to the navi-
gation of boundary rivers and waterways and of
rivers and waterways which pass through more
than one country.
"8. We believe that all states which are accepted
in the society of nations should have access on
equal terms to the trade and the raw materials of
the world.
"9. We believe that the sovereign states of the
Western Hemisphere, without interference from
outside the Western Hemisphere, must work to-
gether as good neighbors in the solution of their
common problems.
"10. We believe that full economic collaboration
between all nations, great and small, is essential to
the improvement of living conditions all over the
world, and to the establishment of freedom from
fear and freedom from want.
"11. We shall continue to strive to promote
freedom of expression and freedom of religion
throughout the jieace-loving areas of the world.
"12. We are convinced that the preservation of
peace between nations requires a United Nations
Organization composed of all the peace-loving
nations of the world who are willing jointly to
use force, if necessary, to insure peace." '
That is our foreign policy.
We may not always fully succeed in our ob-
jectives. Thei"e niay be instances where the at-
tainment of those objectives is delayed. But we
will not give our full sanction and approval to
actions which fly in the face of these ideals.
The world has a great stake in the political
and economic future of Germany. The Allied
Control Council has now been in operation there
for a substantial period of time. It has not met
with unqualified success. The acconnnodation of
vai'ying views of four governments in the day-to-
day civil administration of occupied territory is
a challenging task. In my judgment, however,
the Council has made encouraging progress in the
FEBRUARY 3, 1946
139
face of most serious difficulties. It is my purpose
at tlie earliest practicable date to transfer from
military to civilian personnel the execution of
United States participation in the government of
occupied territory in Europe. We are determined
that effective control shall be maintained in Ger-
many until we are satisfied that the German peo-
ple have regained the right to a place of honor
and respect.
On the other side of the world, a method of in-
ternational cooperation has recently been agreed
upon for the treatment of Japan. In this pattern
of control, the United States, with the full ap-
proval of its partners, has retained primai-y au-
thority and pi'imary responsibility. It will con-
tinue to do so until the Japanese people, by tlieir
own freely expressed choice, choose their own
form of government.
Our basic policy in the Far East is to encour-
age tlie development of a strong, independent,
united, and democratic China. That has been
the traditional policy of the United States.
At Moscow the United States, the Union of
Soviet Socialist Republics, and Great Britain
agreed to further this development by supporting
the efforts of the national government and non-
governmental Chinese political elements in bring-
ing about cessation of civil strife and in broaden-
ing the basis of representation in the Government.
That is the policy which General Marshall is so
ably executing today.
It is the purpose of the Government of the
United States to proceed as rapidly as is prac-
ticable toward the i-estoration of the sovereignty
of Korea and the establislmient of a democratic
government by the free choice of the people of
Korea.
At the threshold of every problem which con-
fronts us today in international affairs is the
appalling devastation, hunger, sickness, and per-
vasive human misery that mark so many areas
of the world.
By joining and participating in the woi'k of the
United Nations Relief and Rehabilitation Admin-
istration the United States has directly recognized
and assumed an obligation to give such relief as-
sistance as is practicable to millions of innocent
and helpless victims of the war. The Congress
has earned the gratitude of the world by generous
financial contributions to the United Nations Re-
lief and Rehabilitation Administration.
We have taken the lead, modest though it is,
in facilitating under our existing immigration
quotas the admission to the United States of refu-
gees and displaced persons from, Europe.
We have joined with Great Britain in the or-
ganization of a commission to study the jDroblem
of Palestine. The Commission is already at work
and its recommendations will be made at an early
date.
The members of the United Nations have paid
us the high compliment of choosing the United
States as the site of the United Nations head-
quarters. We shall be host in spirit as well as in
fact, for nowhere does there abide a fiercer de-
termination that this peace shall live than in the
hearts of the American jaeople.
It is the hope of all Americans that in time
future historians will speak not of World War I
and World War II, but of the first and last world
wars.
2. Foreign Economic Policy
The foreign economic policy of the United States
is designed to promote our own prosperity, and
at the same time to aid in the restoration and ex-
pansion of M'orld markets and to contribute
thereby to world peace and world security. We
shall continue our efforts to provide relief from
the devastation of war, to alleviate the sufferings
of displaced persons, to assist in reconstruction and
develojament, and to promote the expansion of
world trade.
We have already joined the International Mone-
tary Fund and the International Bank for Recon-
struction and Development. We have expanded
the Export-Import Bank and provided it with ad-
ditional capital. The Congress has renewed the
Trade Agreements Act which provides the neces-
saiy framework within which to negotiate a re-
duction of trade barriers on a reciprocal basis. It
has given our support to the United Nations Relief
and Rehabilitation Administration.
In accordance with the intentions of the Con-
gress, lend-lease, except as to continued military
lend-lease in China, was terminated upon surren-
der of Japan. The first of the lend-lease settle-
ment agreements has been completed with the
United Kingdom. Negotiations with other lend-
lease countries are in progress. In negotiating
these agreements, we intend to seek settlements
which will not encumber world trade through war
debts of a character that proved to be so detri-
140
DEPARTMENT OF STATE BULLETIN
mental to the stability of the world economy after
the last war.
We have taken steps to dispose of the goods
which on VJ-day were in the lend-lease pipe line to
the various lend-lease countries and to allow them
long-term credit for the purpose where necessary.
We are also making arrangements under which
those countries may use the lend-lease inventories
in their possession and acquire surplus property
abroad to assist in their economic rehabilitation
and reconstruction. These goods will be accounted
for at fair values.
The proposed loan to the United Kingdom,
which I shall recommend to the Congress in a sep-
arate message, will contribute to easing the tran-
sition problem of one of our major partners in the
war. It will enable the whole sterling area and
other countries affiliated with it to resume trade
on a multilateral basis. Extension of this credit
will enable the United Kingdom to avoid discrim-
inatory trade arrangements of the type which de-
stroyed freedom of trade during the 1930's. I con-
sider the progi-ess toward multilateral trade which
will be achieved by this agreement to be in itself
sufficient warrant for the credit.
The view of this Government is that, in the
longer run, our economic prosperity and the pros-
perity of the whole world are best served by the
elimination of artificial barriers to international
trade, whether in the form of unreasonable tariffs
or tariff preferences or commercial quotas or em-
baigoes or the resti'ictive practices of cartels.
The United States Government has issued pro-
posals for the expansion of world trade and em-
ployment to ■which the Government of the United
Kingdom has given its support on every important
issue. These proposals are intended to form the
basis for a trade and employment conference to be
held in the middle of this year. If that conference
is a success, I feel confident that the way will have
been adequately prepared for an expanded and
prosperous world trade.
We shall also continue negotiations looking to
the full and equitable development of facilities
for transportation and communications among
nations.
The vast majority of the nations of the world
have chosen to woik together to achieve, on a coop-
erative basis, world security and world prosperity.
The effort cannot succeed without full cooperation
of the United States. To play our part, we must
not only resolutely carry out the foreign policies
we have adopted but also follow a domestic policy
which will maintain full production and employ-
ment in the United States. A serious depression
here can disrupt the whole fabric of the world
economy.
3. Occupied Countries
The major tasks of our Military Establish-
ment in Europe following VE-day, and in the
Pacific since the surrender of Japan, have been
those of occupation and military government.
In addition we have given much-needed aid to
the peoples of the liberated countries.
The end of the war in Europe found Germany
in a chaotic condition. Organized government
had ceased to exist, transportation systems had
been wrecked, cities and industrial facilities had
been bombed into ruins. In addition to the tasks
of occupation we had to assume all of the func-
tions of government. Great progress lias been
made in the repatriation of displaced persons
and of prisoners of war. Of the total of 3,500,-
000 disiDlaced persons found in the United States
zone only 460,000 now remain.
The extensive complications involved by the
requirement of dealing with three other govern-
ments engaged in occupation and with the gov-
ernments of liberated countries require intensive
work and energetic cooperation. The influx of
some 2 million German refugees into our zone
of occupation is a pressing problem, making ex-
acting demands upon an already overstrained
internal economy.
Improvements in the European economy dur-
ing 1945 have made it possible for our military
authorities to relinquish to the governments of
all liberated areas, or to the United Nations Re-
lief and Rehabilitation Administration, the re-
sponsibility for the provision of food and other
civilian relief supplies. The Army's responsi-
bilities in Europe extend now only to our zones
of occupation in Germany and Austria and to
two small areas in northern Italy.
By contrast with Germany, in Japan we have
occupied a country still possessing an organized
and operating governmental system. Although
severely damaged, the Japanese industrial and
transportation systems have been able to insure
at least a survival existence for the population.
The repatriation of Japanese military and ci-
vilian personnel from overseas is proceeding as
lapidly as shipping and other means permit.
FEBRUARY 3, 1946
141
In order to insure that neither Germany nor
Japan will again be in a position to wage aggres-
sive warfare, the armament-making potential of
these countries is being dismantled and funda-
mental changes in their social and political struc-
tures are being effected. Democratic systems are
being fostered to the end that the voice of the
common man may be heard in the councils of
his government.
For the first time in history the legal culpa-
bility of war makers is being determined. The
trials now in progress in Niirnberg — and those
soon to begin in Tokyo — ^bring before the bar of
international justice those individuals who are
charged with the responsibility for the suffer-
ings of the past six years. We have high hope
that this public portrayal of the guilt of these
evildoers will bring wholesale and permanent re-
vulsion on the part of the masses of our former
enemies against war, militarism, aggression, and
notions of race superiority.
4. Demobilization of Our Armed Forces
The cessation of active campaigning does not
mean that we can completely disband our fight-
ing forces. For their sake and for the sake of
their loved ones at home, I wish that we could.
But we still have the task of clinching the vic-
tories we have won — of making certain that Ger-
many and Japan can never again wage aggres-
sive warfare, that they will not again have the
means to bring on anotlier world war. The per-
formance of that task requires that, together with
our allies, we occupy the hostile areas, complete
the disarmament of our enemies, and take the
necessary measures to see to it that they do not
rearm.
As quickly as possible, we are bringing about
the reduction of our armed services to the size
required for these tasks of occupation and dis-
armament. The Army and the Navy are follow-
ing both length-of-service and point systems as
far as possible in releasing men and women from
the service. The points are based chiefly on
length and character of service, and on the exist-
ence of dependents.
Over 5 million from the Army have already
passed through the separation centers.
The Navy, including the Marine Corps and the
Coast Guard, has discharged over one and a half
million.
Of the 12 million men and women serving in the
681639—46 2
Army and Navy at the time of the surrender of
Germany, one-half have already been released.
The gieater part of these had to be brought back
to this country from distant parts of the world.
Of course, there are cases of individual hardship
in retention of personnel in the service. There
will be in the future. No system of such size can
operate to perfection. But the systems are founded
on fairness and justice, and they are working at
full speed. We shall try to avoid mistakes, in-
justices, and hardship — as far as humanly possible.
We have already reached the point where ship-
ping is no longer the bottleneck in the return of
troops from the European theater. The govern-
ing factor now has become the requirement for
troops in sufficient strength to carry out their
missions.
In a few months the same situation will exist in
the Pacific. By the end of June, 9 out of 10 who
wei'e serving in the armed forces on VE-day will
have been released. Demobilization will continue
thereaftter, but at a slower rate, determined by our
military responsibilities.
Our national safety and the security of the
world will requii-e substantial armed forces, par-
ticularly in oveiseas service. At the same time it is
imperative that we relieve those who have already
done their duty, and that we relieve them as fast
as we can. To do that, the Army and the Navy
are conducting recruiting drives with considerable
success.
The Army has obtained nearly 400,000 volunteers
in the past four months, and the Navy has obtained
80,000. Eighty percent of these volunteers for
the regular service have come from those already
with the colors. The Congress has made it pos-
sible to offer valuable inducements to those who
are eligible for enlistment. Every effort will be
made to enlist the required number of young men.
The War and Navy Departments now estimate
that by a year from now we still will need a
strength of about 2 million, including officers, for
the armed forces — Army, Navy, and Air. I have
reviewed their estimates and believe that the safety
of the Nation will require the maintenance of an
armed strength of this size for the calendar year
that is before us.
In case the campaign for volunteers does not pi'o-
duce that number, it will be necessary by additional
legislation to extend the Selective Service Act be-
yond May 16, the date of expiration under existing
142
DEPARTMENT OF STATE BULLETIN
law. That is the only way we can get the men
and bring back our veterans. There is no other
way. Action along this line should not be post-
poned beyond March, in order to avoid uncertainty
and disruption.
Recommendations for Specific Federal Activities
1. War Liquidation and National Defense
(a) War expenditures
The fiscal year 1947 will see a continuance of
war liquidation and occupation. During this
period we shall also lay the foundation for our
peacetime system of national defense.
In the fiscal year that ended on June 30, 1945,
almost wholl}' a period of global warfare, war
expenditures amounted to 90.5 billion dollars.
For the fiscal year 1946 war expenditures were
originally estimated at 70 billion dollars. That
estimate was made a year ago while we were still
engaged in global warfare. After victory over
Japan this estimate was revised to 50.5 billion
dollars. Further cut-backs and accelerated de-
mobilization have made possible an additional
reduction in the rate of war spending. During
the first 6 months 32.9 billion dollars were spent.
It is now estimated that 16.1 billion dollars will
be spent during the second 6 months, or a total
of 49 billion dollars during the whole fiscal year.
For the fiscal year 1947 it is estimated, tenta-
tively, that expenditures for war liquidation, for
occupation, and for national defense will be re-
duced to 15 billion dollars. The War and Navy
Departments are expected to spend 13 billion
dollars; expenditures of other agencies, such as
the United States Maritime Commission, the War
Shipping Administration, and the OiSce of Price
Administration, and payments to the United Na-
tions Relief and Rehabilitation Administration
are estimated at 3 billion dollars. Allowing for
estimated net receipts of 1 billion dollars arising
from war activities of the Reconstruction Finance
Corporation, the estimated total of war expendi-
tures is 15 billion dollars. At this time only a
tentative break-down of the total estimate for
war and defense activities can be indicated.
An expenditure of 15 billion dollars for war
liquidation, occupation, and national defense is
a large sum for a year which begins 10 months
after fighting has ended. It is 10 times our ex-
penditures for defense before the war; it amounts
to about 10 percent of our expected national in-
come. This estimate reflects the immense job that
is involved in winding up a global war effort and
stresses the gi-eat responsibility that victory has
placed upon this country. The large expenditures
needed for our national defense emphasize the
great scope for effective organization in further-
ing economy and efficiency. To this end I have
recently I'ecommended to the Congress adoption
of legislation combining the War and Navy De-
partments into a single Department of National
Defense.
A large part of these expenditures is still to
be attributed to the costs of the war. Assuming,
somewhat arbitrarily, that about one-half of the
15-billion-dollar outlay for the fiscal year 1947
is for war liquidation, aggregate expenditures
by this Government for the second World War
are now estimated at 347 billion dollars through
June 30, 1947. Of this, about 9 billion dollars
will have been recovered through renegotiation
and sale of surplus property by June 30, 1947;
this has been reflected in the estimates of receipts.
Dcm-ohiUzation and strength of armed forces. —
Demobilization of our armed forces is proceeding
rapidly. At the time of victory in Europe, about
12.3 million men and women were in the armed
forces; 7.6 million were overseas. By the end of
December 1945 our armed forces had been reduced
to below 7 million. By June 30, 1946, they will
number about 2.9 million, of whom 1.8 million will
be individuals enlisted and inducted after VE-day.
Mustering-out pay is a large item of our war liqui-
dation expense; it will total 2.5 billion dollars in
the fiscal year 1946, and about 500 million dollars
in the fiscal year 1947.
In the fiscal year 1947 the strength of our armed
forces will still be above the ultimate peacetime
level. As I have said. War and Navy Department
requirements indicate a strength of about 2 million
in the armed forces a year from now. This is neces-
sary to enable us to do our share in the occupation
of enemy territories and in the preservation of
peace in a troubled world. Expenditures for pay,
subsistence, travel, and miscellaneous expenses of
the armed forces, excluding mustering-out pay, are
estimated at 5 billion dollars.
Contract settlement and surplus property dis-
posal.— The winding up of war procurement is the
second most important liquidation job. By the
end of November a total of 301,000 prime contracts
involving commitments of 64 billion dollars had
FEBRUARY 3, 1946
143
been terminated. Of this total, 67,000 contracts
with commitments of 35 billion dollars remained
to be settled. Termination payments on these con-
tracts are estimated at about 3.5 billion dollars. It
is expected that more than half of these terminated
contracts will be settled during the current fiscal
year, leaving payments of about 1.5 billion dollars
for the fiscal year 1947.
Another important aspect of war supply liqui-
dation is the disposal of surplus property. Muni-
tions, ships, plants, installations, and supplies,
originally costing 50 billion dollars or more, will
ultimately be declared surplus. The sale value
of this property will be far less than original cost
and disposal expenses are estimated at 10 to 15
cents on each dollar realized. Disposal units
within existing agencies have been organized to
liquidate surplus i^roperty under the direction of
the Surplus Property Administration. Overseas
disposal activities have been centralized in the
State Department to permit this program to be
carried on in line with over-all foreign policy.
Thus far only about 13 billion dollars of the ulti-
mate surplus, including 5 billion dollars of un-
salable aircraft, has been declared. Of this
amount, 2.3 billion dollars have been disposed of,
in sales yielding 600 million dollars. The tre-
mendous job of handling surplus stocks will con-
tinue to affect Federal expenditui-es and receipts
for several years. The speed and effectiveness of
surplus disposal operations will be of great im-
portance for the domestic economy as well as for
foreign economic policies.
War supplies, maintenance, and relief. — Ade-
quate provision for the national defense requires
that we keep abreast of scientific and technical
advances. The tentative estimates for the fiscal
year 1947 make allowance for military research,
limited procurement of weapons in the develop-
mental state, and some regular procurement of
munitions which were developed but not mass-
produced when the war ended. Expenditures for
procurement and construction will constitute one-
third or less of total defense outlays, compared to
a ratio of two-thirds during the war years.
The estimates also provide for the maintenance
of our war-expanded naval and merchant fleets,
military installations, and stocks of military equip-
ment and supplies. Our naval combatant fleet is
three times its pre-Pearl Harbor tonnage. Our
Merchant Marine is five times its prewar size. The
War Department has billions of dollars worth of
equijiment and supplies. Considerable mainte-
nance and repair expense is necessary for the
equipment which we desire to retain in active
status or in war reserve. Expenses will be incurred
for winnowing the stocks of surpluses, for prepar-
ing lay-up facilities for the reserve fleets, and for
storage of reserve equipment and supplies.
Military expenditures in the current fiscal year
include 650 million dollars for civilian supplies
for the prevention of starvation and disease in
occupied areas. Expenditures on this account
will continue in the fiscal year 1947. The war
expenditures also cover the expenses of civilian
administration in occupied areas.
During the war, 15 cents of each dollar of our
war expenditures was for lend-lease aid. With
lend-lease terminated, I expect the direct opera-
tions under this program to be substantially com-
pleted in the current fiscal year. The expendi-
tures estimated for the fiscal year 1947 under this
program are mainly interagency reimbursements
for past transactions.
Relief and rehabilitation expenditures are in-
creasing. It is imperative that we give all neces-
sary aid within our means to the people who
have borne the ravages of war. I estimate that
in the fiscal year 1946 expenditures for the
United Nations Relief and Rehabilitation Ad-
ministration will total 1.3 billion dollars and in
the following year 1.2 billion dollars. Insofar as
possible, procurement for this purpose will be
from war surpluses.
(fe) Authorizations Jot War and national defense
During the war, authorizations and appropri-
ations had to be enacted well in advance of obli-
gation and spending to afford ample time for
planning of production by the procurement serv-
ices and by industry. Thus our cumulative war
program authorized in the period between July
1, 1940, and July 1, 1945, was 431 billion dollars,
including net war commitments of Government
corporations. Expenditures against those au-
thorizations totaled 290 billion dollars. This
left 141 billion dollars in unobligated authoriza-
tions and unliquidated obligations.
With the end of fighting, it became necessary
to adjust war authorizations to the requirements
of war liquidation and continuing national de-
fense. Intensive review of the war authoriza-
tions by both the executive and the legislative
144
DEPARTMENT OF STATE BULLETIN
branches has been continued since VJ-day. As a
result, the authorized war program is being
brought more nearly into line with expenditures.
Rescisaions and authorizations through the -fis-
cal year 19Ifi. — Readjusting the war program, as
the Congress well knows, is not an easy task.
Authorizations must not be too tight, lest we
hamper necessary operations; they must not be
too ample, lest we lose control of spending. Last
September, I transmitted to the Congress recom-
mendations on the basis of which the Congress
voted H.R. 4407 to repeal 50.3 billion dollars of
appropriations and authorizations. I found it
necessary to veto this bill because it was used
as a vehicle for legislation that would impair
the reemployment program. However, in order
to preserve the fine work of the Congress on the
rescissions, I asked the Director of the Bureau
of the Budget to place the exact amounts indi-
cated for repeal in a nonexpendable reserve, and
to advise the departments and agencies accord-
ingly. This has been done.
8. International Financial Programs
I have already outlined the broad objectives of
our foreign economic policy. In the present sec-
tion I shall indicate the Federal outlays which the
execution of these programs may require in the
fiscal years 1946 and 1947.
(a) On the termination of lend-lease, the lend-
lease countries were required to pay for goods in
the lend-lease pipe line either in cash or by bor-
rowing from the United States or by supplying
goods and services to the United States. Credits
for this purpose have already been extended to
the Soviet Union, France, the Netherlands, and
Belgium amounting to 675 million dollars. The
settlement credit of 650 million dollars to the
United Kingdom includes an amount preliminar-
ily fixed at 118 million dollars which represents
the excess of purchases by the United Kingdom
from the pipe line over goods and services supplied
by the United Kingdom to the United States since
VJ-day and the balance of various claims by one
government against the other.
Ci'edits are also being negotiated with lend-lease
countries to finance the disposition of lend-lease
inventories and installations and propei'ty de-
clared to be surplus. For instance, 532 million
dollars of the settlement credit to the United
Kingdom is for this purpose. These credits will
involve no new expenditures by this Government,
since they merely provide for deferred repayment
by other governments for goods and services which
have been financed from war appropriations.
(5) Expenditures from the appropriations to
United Nations Relief and Rehabilitation Admin-
istration, which were discussed under war expendi-
tures above, are estimated to be 1.3 billion dollars
in the fiscal year 1946 and 1.2 billion dollars in the
fiscal year 1947.
((?) To assist other countries in the restoration
of their economies the Export-Import Bank has
already negotiated loans in the fiscal year 1946
amounting in total to about 1,010 million dollars
and an additional 195 million dollars will probably
be committed shortly. The Bank is also granting
loans to carry out its original purpose of directly
expanding the foreign trade of the United States.
In this connection the Bank has established a fund
of 100 million dollars to finance the export of cot-
ton from the United States. The Export-Import
Bank has thus loaned or committed approximately
1,300 million dollars during the current fiscal year
and it is expected that demands on its resources
will increase in the last 6 months of the fiscal year
1946. Requests for loans are constantly being re-
ceived by the Bank from countries desiring to se-
cure goods and services in this country for the re-
construction or development of their economies.
On July 31, 1945, the lending authority of the Ex-
port-Import Bank was increased to a total of 3,500
million dollars. I anticipate that during the period
covered by this Budget the Bank will reach this
limit. The bulk of the expenditures from the loans
already granted will fall in the fiscal year 1946
while the bulk of the exjienditures from loans yet
to be negotiated will fall in the fiscal year 1947.
In view of the urgent need for the Bank's credit,
I may find it necessary to request a further increase
in its lending authority at a later date.
{(I) The proposed line of credit of 3,750 million
dollars to the United Kingdom will be available up
to the end of 1951 and will be used to assist the
United Kingdom in financing the deficit in its bal-
ance of payments during the transition period.
The rate at which the United Kingdom will draw
on the credit will depend on the rapidity with
which it can reconvert its economy and adapt its
trade to the postwar world. The anticipated rate
FEBRUARY 3, 1946
145
of expenditure is likely to be heaviest during the
next 2 years.
(e) Since the Bretton Woods Agreements have
now been approved by the required number of
countries, both the International Monetary Fund
and the International Banl?; for Eeconstruction
and Development will commence operations dur-
ing 1946. The organization of these institutions
will undoubtedly take some time, and it is unlikely
that their operations will reach any appreciable
scale before the beginning of the fiscal year 1947.
Of the 2,750 million dollars required for the
Fund, 1,800 million dollars will be provided in
cash or notes from the exchange stabilization fund
established under the Gold Reserve Act of 1934.
The remaining 950 million dollars will be paid
initially in the form of non-interest-bearing notes
issued by the Secretary of the Treasury. It is not
anticipated that the Fund will require in cash any
of the 950 million dollars during the fiscal years
of 1946 and 1947. Consequently, no cash with-
drawals from the Treasury will be required in
connection with the Fund in these years.
The subscription to the Bank amounts to 3,175
million dollars. Of this total, 2 percent must be
paid immediately and the Bank is required to call
a further 8 percent of the subscription during
its first year of operations. The balance of the
subscription is payable when required by the
Bank either for direct lending or to make good
its guarantees. It is likely that the United States
will be required to pay little if any more than the
initial 10 percent before the end of the fiscal
year 1947.
I anticipate that net expenditures of the Ex-
port-Import Bank and expenditures arising from
the British credit and the Bretton Woods Agree-
ments will amount to 2,614 million dollars, in-
cluding the non-cash item of 950 million dollars
for the Fund, in the fiscal year of 1946, and 2,754
million dollars in the fiscal year 1947.
Expenditures for our share of the adminis-
trative budgets of the United Nations and other
permanent international bodies will increase
sharply in the fiscal year 1947, yet will remain a
small part of our total Budget. The budget for
the United Nations has not yet been determined ;
an estimate for our contribution will be submitted
later. Our contributions to the Food and Agri-
culture Organization, the International Labor
Office, the Pan American Union, and other similar
international agencies will aggregate about 3
million dollars for the fiscal year 1947. The ad-
ministrative expenses of the International Mone-
tary Fund and the International Bank will be
met from their general funds.
We have won a great war — we, the nations of
plain people who hate war. In the test of that
war we found a strength of unity that brought us
through — a strength that crushed the power of
those who sought by force to deny our faith in
the dignity of man.
During this trial the voices of disunity among
us were silent or were subdued to an occasional
whine that warned us that they were still among
us. Those voices are beginning to cry aloud again.
We must learn constantly to turn deaf ears to
them. They are voices which foster fear and
suspicion and intolerance and hate. They seek
to destroy our harmony, our understanding of
each other, our American tradition of "live and
let live." They have become busy again, trying
to set race against race, creed against creed,
farmer against city dweller, worker against em-
ployer, people against their own governments.
They seek only to do us mischief. They must not
prevail.
It should be impossible for any man to contem-
plate without a sense of personal hmnility the
tremendous events of the 12 months since tiie last
annual Message, the great tasks that confront us,
the new and huge problems of the coming months
and years. Yet these very things justify the deep-
est confidence in the future of this Nation of free
men and women.
The plain people of this country found the
courage and the strength, the self-discipline, and
the mutual respect to fight and to win, with the
help of our allies, under God. I doubt if the
tasks of the future are more difficult. But if they
are, then I say that our strength and our knowl-
edge and our understanding will be equal to those
tasks.
Haert S. Tkuman
January H, 19^6
146
DEPARTMENT OF STATE BULLETIN
General Assembly of the United Nations
STATEMENT BY THE SECRETARY OF STATE ON CONTROL OF ATOMIC ENERGY
I WISH to make a short statement in suppoi't of
the very able report just made to the Gen-
eral Assembly by the Political and Security
Committee.
The United Nations were obliged to unite in
war to preserve their common freedom. The
United Nations are now committed to remain
united to preserve their common jaeace. We won
the war against aggi'ession and tyranny by fight-
ing together. We must now keep the peace by
working together.
The report filed by the Committee calls upon
us to join in creating a commission to study from
the point of view of international control the
problems created by the discovery of atomic en-
ergy and of other forces capable of mass destruc-
tion. It calls upon us to find ways which will
permit and promote the use of our knowledge of
the forces of nature for the benefit of mankind
under safeguai'ds which will prevent their use
for destructive purposes.
Science is a monopoly of no one nation. The
discovery of atomic energy like other great scien-
tific discoveries is based on early discoveries and
the research of many inquiring minds in many
countries. In a number of countries scientists
were probing into the field of atomic energy be-
fore the war started. The United States, United
Kingdom, and Canada decided to pool their
knowledge, and the United States at a cost of 2
billion dollars pressed forward with research and
developments to insure that the nations fighting
to preserve freedom on this earth should not lag
in the race to discover the secret of the atom. We
entered the race not to destroy but to save civili-
zation, but if the race continues uncontrolled the
civilization we hoped to save may be destroyed.
The problems presented by the discovery of
atomic energy and of other forces capable of mass
destruction cannot be solved by any one nation.
They are the common responsibility of all nations,
and each of us must do our part in meeting
them. In meeting these problems we must realize
that in this atomic age and in this interdependent
world our common interests in preserving the
peace far outweigh any possible conflict in in-
terest that might divide us.
At this first session of the General Assembly we
must begin to put less emphasis on our particular
viewpoint and particular interests and seek with
all our hearts and all our minds to find means of
reconciling our views and our interests for the
common good of all humanity. Peace and recon-
ciliation cannot be achieved by unilateral action.
Peace and reconciliation require conmion action.
That is why the more tasks we set for ourselves
the more we are likely to come to understand each
other's problems and interests. And certainly
the problem of devising the necessary safeguards
to insure that atomic energy will be used for the
benefit of humanity and not for its destruction
is a common problem. To consider this and other
common problems in the spirit of peace and re-
conciliation, we must get back to conditions of
peace.
There will be need for the continuation for
some time to come of armies of occupation in
Germany and Japan, but it will not make for a
peaceful world to have armies of occupation re-
main in countries which we hope will soon join
us in the United Nations.
We must see that the world ceases to be an
armed camp. We must see that peace treaties
with the states which were brought into unwill-
ing partnership with the Axis powers are
jiromptly concluded and occupation forces with-
drawn. We must begin to live together and to
work together.
I hope that the General Assembly will promptly
approve the resolution which is before it. I hope
that the Commission will promptly set to work
on its tasks. It will be comforting to the peace-
loving peoples of the world to know that we are
moving promptly to endeavor to find ways to
avoid a race in armament.
We who fought together for freedom must now
show that we are worthy of the freedom that
we have won.
Marte at the 17th plenary session of the General As-
sembly in London on Jan. 24 and released to the press
on the same date.
FEBRUARY 3, 1946
147
REPORT FROM LONDON TO THE OFFICE OF PUBLIC AFFAIRS, DEPARTMENT OF STATE
London, Feb. 1. — The unanimous Security
Council decision this week to retain "a continuing
concern" in negotiations between the Soviet Union
and Iran has led the United Nations through its
iirst political test to a stronger and more confident
position. This precedent-setting decision together
with the Council's nomination of Trygve Lie,
Norwegian Foreign Minister, to the post of Sec-
retary-General were the two leading actions in
the third full week of activity of the United Na-
tions General Assembly. The "situation in north-
ern Iran" provided the basis for more than six
hours of intense discussion and much "plain talk"
by Council members. As a result direct negotia-
tions will be resumed by the Soviet Union and
Iran for the purjDose of arriving at a solution
acceptable to the Security Council as well as the
two countries involved. Compromise between the
two extreme stands of Iran and the Soviet Union
was achieved in a resolution presented in its final
form by British Foreign Minister Ernest Bevin
and adopted unanimously by the Council. Text
of the resolution says :
"Having heard the statement by the representa-
tives of the Soviet Union and Iran in the course of
the meeting on January 28 and 30 and having
taken cognizance of the documents presented by
the Soviet and Iranian Delegations and those re-
ferred to in tlie course of the debate and consider-
ing that both parties have affirmed their readiness
to seek a solution of the matter at issue by negotia-
tion and that such negotiations will be resumed in
the near future, tlie Council requests the parties to
inform the Council of any results achieved in such
negotiations. The Council in tlie meanwhile re-
tains the right to request information on the
l^rogress of the negotiations at any time."
Briefly, the situation in northern Iran arises
from the allegation that Soviet troops prevented
Iranian police contingents from crossing into the
Iranian province of Azerbaijan to suppress a sep-
aratist group reported attempting to set up an
independent state. During the course of the Coun-
cil discussion U. S. Chief Delegate Edward R.
Stettinius urged that the matter be retained on the
Security Council agenda. In helping to achieve
a successful solution, Mr. Stettinius agreed to
withdraw his demand provided it was clearly un-
derstood that the dispute would be a matter of
"continuing concern" to the Council until it was
settled in conformity with the principles of the
United Nations Charter.
Nominalion of Trygve Lie
Nomination of Trygve Lie culminated several
weeks of informal Security Council discussions.
Lie's name had once before been brought before
the Assembly in the balloting for presidency of
the General Assembly, in which he was strongly
supported by the American Delegation. The
Council voted 11-0 to bring Lie's name before the
Assembly for final approval.
Organizing the Secretariat
The Secretary-General, chief administrative
officer of the Organization, receives an annual sal-
ary of $20,000 plus an additional $20,000 for ex-
penses as well as a furnished residence at United
Nations headquarters. Among his immediate
tasks is to take steps to establish an administrative
organization which will permit the effective dis-
charge of his administrative and general responsi-
bilities under the Charter and the efficient per-
formance of those functions and sei'vices required
to meet the needs of the several organs of the
United Nations. In this latter connection, he will
be required to name assistant secretaries-general to
head the principal units of the Secretariat. They
are:
1. Department of Security Council Affairs
2. Department of Economic Affairs
3. Department of Social Afl'aii's
4. Department for Trusteeship and Information
from Non-Self-Governing Territories
5. Department of Public Information
6. Legal Department
7. Conference and General Services
8. Administrative and Financial Services.
Because of delay in transmission, it will be necessary
to print the complete report of Feb. 1 from London in the
Bulletin of Feb. 10.
148
DEPARTMENT OF STATE BULLETIN
Philippine Foreign Affairs Training Program
Article by EDWARD W. MILL
A Philippine Foreign Affairs Training Pro-
gram designed to assist the Filipinos in pre-
paring for the conduct of their own foreign
relations when independence is granted on July
4, 1946 is now in progress in the Department of
State.
Origins of Program
This program is the outgrowth of preliminary
studies made several years ago by representatives
of the Department of State. The recent war and
the subsequent occupation of the Philippines by
the Japanese interrupted plans of the Department
for developing an active training program, but
with the end of the war in the Pacific definite
steps were again taken to devise plans to assist
in developing a Philippine Foreign Service after
independence and to aid in the work incident to
establishing a Department of Foreign Affairs for
the new republic.
Participation in Foreign Service Officers' Training
School
On December 3, 1945 the first group of Filipino
trainees, consisting of Jose F. Imperial, Tiburcio
C. Baja, Vicente I. Singian, Manuel A. Adeva,
and Candido T. Elbo, entered the Department to
begin their training under the central supervision
of the Division of Philippine Affairs. This group
participated in most of the recent sessions of the
Foreign Service Officers' Training School.
During the first week in the Foreign Service
School the trainees attended a series of general
orientation lectures on the work of the Depart-
ment and the work of the Foreign Service. Mal-
colm Morrow, Chief of the Division of Public In-
Mr. Mill is Acting Assistant Chief of the Division of
Philippine Affairs, Office of Far Eastern Affairs, De-
partment of State.
quiries. Government Information Service, Bu-
reau of the Budget, spoke on the "Organization
of the Federal Government", and Walton C. Fer-
ris, Foreign Service officer detailed as Inspector,
discussed the "Organization of the Foreign
Service". John F. Simmons, American Ambassa-
dor Extraordinary and Plenipotentiary to -El
Salvador, talked to the group on "How a Diplo-
matic Mission Operates".
In the second week of work Nelson T. Johnson,
American Envoy Extraordinary and Minister
Plenipotentiary to Australia, spoke on the sub-
ject, "Conduct and Contacts Abroad", and a spe-
cial conference was held for the Filipino trainees
on the organization and functioning of the Office
of the Foreign Service, by Selden Chapin, Direc-
tor of the Office of the Foreign Service, and
Julian F. Harrington, Deputy Director of the
Office of the Foreign Service.
During the third week special citizenship work
was conducted for the Philippine gi'oup by Eu-
gene C. Rowley, member of the Board of Review
of the Passport Division.
During the fourth week the trainees heard a
lecture on "Writing of Economic Reports" by
William C. Trimble, Assistant Chief of the Divi-
sion of Northern European Affairs, and a lecture
on "Handling of Political and Economic Reports
in the Department of State" by Roger L. Hea-
cock. Foreign Service officer. Chief of the Com-
mercial Liaison Section of the Division of Cen-
tral Services. Perry N. Jester, Acting Chief of
the Division of Training Services, also lectured
on "Service Etiquette".
In the fifth week the trainees participated in
work on shipping and on commercial treaties.
Other important and instructive lectures were
given during this intensive six weeks' session of
the Foreign Service Officers' Training School.
FEBRUARY 3, 1946
149
Other Work Arranged by Division of Philippine
Affaire
In addition to the work in the Foreign Sei'vice
Officers' Training- School, the trainees have par-
ticipated in other work and lectures arranged by
the Division of Philippine Affairs. Specialists
in the Passport, Visa, Commercial Policy, and
Shipping Divisions conducted special classes for
the trainees in their fields of work. A repre-
sentative of the Bureau of the Budget. Walter C.
Laves, discussed the over-all subject of the con-
duct of foreign relations by a modern govern-
ment. The trainees have submitted regular re-
ports on various phases of the work and have
taken a series of examinations. Each Friday a
general review session f)n the work of the week
has been held in the Division of Philippine Af-
fairs.
Plans To Assign Filipinos to Embassies and
Consulates for Training
With the completion of the first phase of the
work in the Department, it is now hoped to as-
sign some of the trainees to American embassies
and consulates abroad where they will receive
practical training in the field. Estimates re-
garding the length of the time required for the
field training vary, but a period of three months is
under consideration.
After their training has been completed in
the Department and abroad, it is expected that
most of the trainees will be assigned to respon-
sible positions in the new Philippine Department
of Foreign Affairs and Foreign Service which
will be created with independence on July 4.
Already an act creating ;in Office of Foreign Be-
lations has been passed by the Philippine Con-
gress and approved by President Osmefia. Since
foreign relations continue to be under the "direct
supervision and control of the United States"
during the pre-independence period,^ the func-
tions of this new office are now confined to plans
for organization of the future Department of
Foreign Affairs and the training of the necessary
personnel. A preliminary step has. however, been
taken in the creation of this office.
681639—46 3
Proposed Philippine Department of Foreign
Affairs
Representatives of the Department of State and
the Philippine Commonwealth Government have
exchanged plans of organization for the new
Philippine Department of Foreign Affairs. One
plan submitted by the Commonwealth Govern-
ment provides for a department headed by a
secretary under whom there will be a permanent
career under secretary and three assistant secre-
taries, one for political affairs, one for economic
affairs, and one for administrative affairs. Under
each of these assistant secretaries would be a
group of divisions totaling eight. This plan of
organization is still subject to change, but it is
believed that the basic outlines of the plan will
be adopted. The Philippine Department of For-
eign Affairs ^i'ill necessarily be small compared
with that of the United States Department of
State.
Proposed Foreign Service
It is expected that the Foreign Service of the
Philippine Republic will be organized on a strictly
career basis. One plan submitted provides that
all members of the Philippine Department of
Foreign Affairs and diplomatic and consular mis-
sions belong to one Foreign Service. It will be
necessary for the Philippine Government to draw
up a basic organization statute for the Foreign
Service as well as to fix a set of rules and regu-
lations to govern its activities. A final organiza-
tion of the Service will not take place before
independence.
Additional Trainees Expected in Near Future
Additional groups of Filipino Foreign Affairs
trainees are expected to arrive in the Department
early in 1946. These new trainees are being se-
lected on the basis of ability and character as
well as on the basis of proven loyalty to the
United States and Commonwealth Governments.
They will add to the group of Filipinos trained
to carry on the foreign affairs of their country
after independence arrives on July 4, 1946.
' Sec. 2 (a-lO) of the Tydings-McDuffie act and sec.
10 of the ordinance appended to the Philippine Con-
stitution.
750
DEPARTMENT OF STATE BULLETIN
Procedure and Principles Involved
In Individual Trusteeship
AOT'iNO Secretary Acheson opened his press
and radio conference on January 22 by re-
calling that a correspondent had asked the pre-
vious week whether the requirement of unanimity
among the five permanent members of the Secu-
rity Council put an impediment in the way of
working out an individual trusteeship by which
this country could fortify some area which it re-
garded as necessary for its defense. He said he
had looked into this question and thought he was
fairly clear. Mr. Acheson explained that the pro-
cedure and the basic principles involved were as
follows : that if the nations principally concerned
in the particular area desired to propose a trus-
teeship as a strategic area, these nations propose
that to the Security Council and negotiate with
the Security Council. In certain cases, he pointed
out, a nation in possession of the area — whether
by mandate or by right of military conquest —
would be the principal leader in those negotia-
tions. Explaining that it is provided that in
a vote upon such a proposal the Council would
have to vote under the provisions which require
assenting votes of fi^•e permanent members, the
Acting Secretary said that any one of the per-
manent members could refuse to agree in the
negotiations. He added that a result of fail-
ure to agree was to leave the situation as it
was, so that if this country were in possession
of one of these areas and there was failure to
agree, it simply would remain where it was before.
If they agi'ee, he continued, there would be a
trusteeship agreement which presumably is satis-
factory to the nations which propose it or other-
wise they would not agree to it. The Acting
Secretary pointed out that after a trusteeship
agreement had been entered into in a strategic
area, it could not be changed without the consent
of the Security Council and therefore it could
not be changed without the consent of the United
States. Mr. Acheson said that he thought this
discussion brought out the significance of agree-
ment : namely, the requirement that there would be
an agreement by the five principal powers who
would operate chiefly in, perhaps, making the ne-
gotiations more lengthy in the first instance but
making them more final after they had been made,
always with the fact in mind that, if there is no
agreement, then you stay where you were before
you started the negotiations.
In other words, a correspondent inquired, if the
United States wanted to hold Okinawa, fortify it,
and have it under an individual trusteeship, it
could take up that matter of fortification as condi-
tion precedent to that trusteeship, and, if that were
not agreed to, we could fortify it '? Replying in the
affirmative, Mr. Acheson explained that at the veiy
outset the party initiating the negotiation has to
state whether this is a strategic area or non-strate-
gic area. He pointed out that, if it is a non-stra-
tegic area, negotiation is with the Trusteeship
Council and the final approval is by the General
Assembly, that if it is a strategic area, the
opposite negotiating party is the Security Council.
Asked what constituted the states directly con-
cerned, the Acting Secretary said that he presumed
that that would have to be settled by diplomatic
negotiation. He added that there are obvious
states which would be concerned in any Japanese
former mandate — those states which had residual
treaty rights in the area at the time the mandate
was created and perhaps any otliers which put
forward claim, which might or might not be recog-
nized by those obviously legally entitled to speak.
Asked whether the fact that Okinawa was taken
in the name of the Allied Supreme Command
might be made basis of claim bj' other powers about
interest in its final disposition, Mr. Acheson replied
in the affirmative, adding that that would have to
be ironed out by diplomatic negotiation.
Wlien asked whether this Government does not
have to be awarded an area at a peace conference
prior to decisions of trusteeship, Mr. Acheson said
that he did not think that was necessary, saying
that you can proceed in any order that the nations
concerned think best. Asked whether the formula
with reference to trusteeship protected the interest
of the United States, the Acting Secretary said he
thought that as the result of the San Francisco
FEBRUARY 3, 1946
151
hearing, sound results were carefully worked out
which piotected the interest of powers.
Asked whether a trusteeship agreement would
take treaty form and be subject to congressional
or senatorial review, the Acting Secretary ex-
plained that in some areas, the United States had a
dual interest, part of which is a result of treaties
made after the last war in which Germany, Japan,
and other powers concerned recognized that this
Government was one of the Princijial Allied and
Associated Powers and had whatever interest in
these mandated areas these powers had, thereby
giving the United States an interest created by
treaty. If that interest were going to be changed
or removed from this Government, Mr. Acheson
presumed, it would be done by a document as
legally significant as the one which created it. He
added under questioning that he assumed the
proper legal form would be found through par-
ticipation of Congress, by treaty or some legis-
lation.
A correspondent said that there was fear in
some of the British Dominions that some of the
mandates granted them in the Pacific, which the
United States occupied militarily to drive the
Japanese out, may be considered by Americans
as highly important strategic areas for the safety
of the United States, and asked how that would
be ironed out. Mr. Acheson said he supposed
that that would have to be worked out by agree-
ment between the United States and the Do-
minions and that perhaps the Security Council
would come into it too. Asked whether, in its
thinking about island questions, the Department
separated mandated islands from Japanese posses-
sions such as the Bonins, the Acting Secretary
said that he thought legally it did. He said that
it would not if it were considering them from
a strategic point of view, but that there were dif-
ferent legal considerations involved.
Asked if our Allies had recognized this Gov-
ernment's right to these Pacific islands, the Act-
ing Secretary said he did not think the question
had been raised. A correspondent said that that
seemed to him like a question that only a peace
conference could settle. Mr. Acheson asserted
that he did not think there was any magic in
the words "peace conference", adding that it was
settled by international agreement.
When a correspondent said that it was his
understanding that the Kuriles were given to
the Eussians by secret agreement at Yalta, the
Acting Secretary said that as he understood the
situation was a matter of occupation, not a final
award.
Asked how the United States could prepare
to make an agreement with the United Nations
for an island which possibly the Soviet Union,
Britain, or China might want to have as their
property, Mr. Acheson explained that if they
had such ambitions, they would put them for-
ward and they would then assert a position as
a nation concerned and that position would
either be recognized or not by those who were
conducting the negotiation.
Wheat Shipments to Liberated
Areas
DIRECTIVE FROM THE PRESIDENT
Sent on January 25 to the Secretaries of State,
Agriculture, War, Navy, and Labor, the Ad?nin-
istrator of the War Shipping Administration, and
the Director of the Office of Defense Transporta-
tion and released to the press hy the White House
on the saine date
I have become increasingly concerned over the
shortages of vitally needed supplies to liberated
countries. I am particularly alarmed at what
now appears to be a world-wide shortage of
wheat. I am informed that many of the coun-
tries of Europe now possess less wheat than is
necessary to maintain distribution, even though
their bread ration is down to a starvation level.
The problem of supplying the destitute people
of the world with this vital food rests mainly
on the shoulders of the United States, Canada,
Australia and Argentina. I am informed that
estimated shipments through the first six months
of 1946 will be at least 5 million tons short of
the requirements of the deficit areas. In view of
this situation, this Government is recommending
that each of the supplying countries accept its
proportionate share of the responsibility in meet-
ing the urgent requirements of the liberated
countries on an equitable basis. Furthermore,
this Government recommends that each of the
importing countries procure from its own inter-
nal sources the maximum quantity of wheat, and
make the best possible use of existing stocks.
(Continued on page 17S)
152
DEPARTMENT OF STATE BULLETIN
Wheat and Coal for Liberated Areas
Article by JAMES A. STILLWELL
THE STORY of wheat and coal is the story of life
in Europe today. It is not a pretty story.
These two commodities mean tlie difference be-
tween extreme suffering and simple economic
existence.
Since the end of the war in Europe and Japan
the people of the United States through the me-
dium of public-opinion polls and by expression
through service organizations and relief societies
have overwhelmingly indicated their desire to
fulfil the maxium relief requirements of the
war-torn areas of the world.
The public officials of this Government have
on many occasions announced their determination
to export maximum quantities of essential sup-
plies to liberated countries, particularly during
the emergency period. The President has em-
phasized this Government's policy to aid the suf-
fering people of the war-torn areas. Upon his
return from the Berlin conference he stated:
"If we let Europe go cold and hungry, we
may lose some of the foundations of order on
which the hoije for world-wide peace must rest.
We must help to the limits of our strength. And
we will." 1
At a press conference on September 17 the
President pointed out that at that time the de-
liveries of essential supplies from this country
to the deficit areas were limited primarily by
the financial resources of the paying governments
and UNRRA. As a matter of fact, there then
existed in the United States quantities of food
supplies and coal considerably in excess of our
domestic needs which were not being procured
by UNRRA or the liberated countries because of
their extremely limited cash resources. Subse-
.Mr. Stilhvell is Adviser on Supplies in War Areas in
the Office of International Trade Policy, Department of
State. For other articles on supplies for liberated areas
by Mr. Still well, see BtTU.ETiN of May 20, 1944, p. 469,
and May 20, 1945, p. 917.
' Bulletin of Aug. 12, 1945, p. 212.
quently, however, several of the paying govern-
ments negotiated loans through the Export-Im-
port Bank to take care of some of their longer
range rehabilitation needs, thereby releasing cash
reserves and short-term credits for the procure-
ment of expendable items such as food and coal.
UNRRA and the countries it serves gained a new
lease on life when the United States Congress
appi'opriated $550,000,000 to fulfil our first com-
mitment to this international I'elief organization
and, in addition, pa.ssed new legislation commit-
ting this Government to a second apjiropriation
of $1,350,000,000 as continued aid to UNRRA's
operation through the year 1946 and the first
quarter of 1947.
After some of the financial bottlenecks had thus
been removed, the people of this country and par-
ticularly the people of the liberated countries ex-
pected that the immense productive capacity of
the United States would begin to grind out relief
supplies in ever increasing quantities.
The actual shipment of essential civilian sup-
plies lias increased during recent months, but new
and greater difficulties have appeared. Although
the pi-esent shipments of supplies from this
country are not fulfilling the minimum urgent
requirements of the deficit areas, the size of the
programs is so tremendous that we are finding it
increasingly difficult to maintain a steady flow of
exports even at the present rate.
The two commodities most essential to the eco-
nomic existence of our liberated Allies are wheat
and coal : The basic ration of the people of Europe
is dependent primarily upon bread, and it has long
been recognized that coal is the hub of the
economic life of Europe.
The minimum import requirements of wheat for
the deficit areas during the first 6 months of 1946
are approximately 17,000,000 tons. Even this
quantity together with the indigenous supplies
will provide pitifully low bread ration in most of
tlie countries of Europe. Failure on the part of
the supplying countries to meet this minimum im-
FEBRUARY 3, 1946
153
port program will undoubtedly result in wide-
spread suffering and some starvation in many spots
throughout the continent.
The food authorities of the Combined Food
Board estimate that the four supplying coun-
tries— United States, Canada, Australia, and
Argentina — can provide onlj' 12,000,000 tons of
wheat during the first 6 months of 1946. They
have estimated that of this amount 6,000,000 tons
must come from the United States. If the result-
ant shortage of 5,000,000 tons is allowed to mate-
rialize we must expect chaotic conditions to de-
velop which could easily threaten to destroy some
of tlie foundations of order referred to by Presi-
dent Truman.
Every effort is being made by this Government
to meet this quota of 6,000,000 tons of wheat ex-
ports during the first 6 months of 1946. This
amount, however, is not enough. We must greatly
exceed this quota and at the same time secure com-
mitments from the other three major supplying
countries to assume their full share of supplying
the total minimum requirements of 17,000,000 tons.
It is difficult for people who face possible starva-
tion to realize that a country so rich and so great as
the United States might be limited in its ability to
furnish the amount of relief they may re(iuire. A
large number of citizens in this country may be
astonished that there is any doubt of our ability
to ship any amount of supplies anywhere in the
world. They reason that since we have the largest
merchant fleet in the world's history and since we
succeeded in supplying the largest military ex-
peditionary force ever maintained overseas by
any country and, at the same time, supplied mili-
tary requirements of many of our Allies, surely we
should be in a position to meet any demands for
civilian su^jplies to liberated countries. If it were
only a question of ships, this would be true.
During the past 6 months, however, the export
of civilian supplies for liberated countries has so
greatly increased that we are now facing the most
difficult inland-transportation, handling, and
poi't-loading problems ever experienced in this
country. Even though we have a surplus of cargo
vessels we are now finding it extremely diflBcult
to load the vessels fast enough to transport the
available quantity of supplies.
This situation may be more readily understood
if reviewed on a comparative scale along with the
transport job accomplished during the war. In
November 1944, during the peak of the war, ap-
proximately 600 ships were loaded at Atlantic
ports with both military- and civilian-relief sup-
plies. In November 1945, however, approximately
1,200 ships were loaded with civilian supplies
through the same Atlantic ports. Such an increase
in our export shipments has naturally increased
our inland-transportation and port-handling
problems by a much greater ratio than the net
increase in tonnage.
During the last 5 months of 1945 we experienced
difficulty in moving to port, loading, and exporting
approximately 5,800,000 tons of coal, yet we must
attempt to increase that rate of export to at least
1,750,000 tons monthly. During that same period
we faced many difficulties in exporting 3,500,000
tons of wheat, yet we must now increase our ex-
port shipments of wheat to more than 1,000.000
tons a month. The inland transportation, port
handling, and loading of these two connnodities
alone to achieve the rate of 2,700,000 tons monthly
present difficulties so complex that direct coordi-
nated control over the whole operation must be
maintained on an hourly basis.
For those who are inclined to criticize the policy
of exporting these commodities to Europe, it
should be j^ointed out that this country now pos-
sesses a surplus of coal which would allow us to
ship 2,500,000 tons a month if it were possible
to move it. The Department of Agriculture re-
ports that we can easily obtain 6,000,000 tons of
wheat during the next 6-month period in excess
of our domestic needs. For the producers of these
two vital commodities this rate of movement pro-
vides a very lucrative business and is greatly in
excess of any export business they ever enjoyed
in the past.
During the pre-war 4-year period, 1935-38 in-
clusive, this country exported to Europe less than
50,000 tons of coal annually. Compare this amount
with the 5,800,000 tons exported in the last 5
months of 1945 or with the 1,750,000 tons we must
strive to export monthly during the first half of
1946. During the same pre-war period the United
States exported to Europe, including the Soviet
Union and Germany, approximately 790,000 tons
of wheat annually. Compare this amount with
the 3,500,000 tons exported during the last half
of 1945 or with the 1,000,000 tons we must strive
to exceed each month during the first half of 1946.
It should also be remembered that a major por-
154
DEPARTMENT OF STATE BULLETIN
tion of these exports are being delivered to the
paying governments for cash and considerably
less quantities are being delivered to UNRRA and
paid for with funds appropriated by the United
States Congress for that purpose.
In spite of the extreme difficulties which have
hampered our efforts in exporting smaller quanti-
ties during the last 5 months, we must find a way
to meet and exceed the goal of exporting 1,750,000
tons of coal and 1,000,000 tons of wheat monthly
during this extremely critical period. If we fail
in this task the disastrous effect on the economies
of the war-torn areas may be so catastrophic and
far-reaching that our struggle to build a firm
foundation for peace may be greatly delayed.
The officials of this Government are greatly
alarmed over the urgency of this problem, and,
even though the immensity of the task is almost
beyond comprehension, nothing is being left un-
done to assure the movement and export of every
possible ton of these essential commodities during
the next few months.
In order to assure the most perfect coordination
among the various Government agencies, commer-
cial channels of trade, and common carriers, John
W. Snyder directed the establishment of an Export
Control Committee on January 2. This Committee
has been directed "to ensure the continuous and
effective coordination of the inland shipments,
loading, ocean shipment and unloading of the basic
export commodities in accordance with established
schedules. When necessary the Conunittee may
establish export priorities." Capt. Granville Con-
way, Deputy Administrator, War Shipping Ad-
ministration, was ajjpointed by Mr. Snyder as the
chairman of the Committee. The Committee mem-
bership consists of James A. Stillwell, Department
of State; Col. Wilbur Elliott, War Department;
Admiral M. W. Callahan, Navy Department; A. S.
Johnson, Office of Defense Transportation; Wil-
liam F. Hahman, Solid Fuels Administration;
Theodore Cummins, Office of War Mobilization
and Reconversion; William MacArthur, Depart-
ment of Agriculture; William Freeman, Treasury
Procurement; and Irwin Heinie, War Shipping
Administi'ation — Secretary. The Committee is in
almost constant session by telephone and convenes
formally at least once a week. Two operating sub-
committees were established to maintain direct
control of the movement and export of wheat and
coal. Field operating committees have been estab-
lished and will be established as necessary, to
maintain hourly supervision over the inland
handling and movement of these two vital com-
modities.
The Committee's operation has already proved
the wisdom of Mr. Snyder's action. It has con-
sidered and directed immediately effective action
on several major problems of export movement.
The Committee will not become entangled in
lengthy discussions of policy because the members
have been directed _ by their respective agencies
to take immediate and effective action concei'ning
any operational problem hindering the move-
ment of the supplies which are so desperately
needed by the suffering j^eople of the war-torn
areas.
It was through the Committee's efforts that
the loading of wheat vessels in Albany, N. Y., was
started early in January, at a time of the year
when such loadings are customarily prohibited
because of the extremely cold weather conditions.
In order to insure the continuance of this loading
schedule, ocean-going tugs are now being em-
ployed as ice-breakers to keep the channels free
for the movement of wheat ships. The possibility
of transporting wheat through the Great Lakes
from Duluth, Minn., to Buffalo, N. Y., during
the winter months has also been explored. The
extreme ice conditions through this area, however,
liave so far prohibited such transport.
The average citizen must be made fully aware
of the true complexities of this tremendous task.
He should realize, for instance, that tlie gathering
of wheat stocks in the United States involves
many thousands of farmers, laborers, truckmen,
and local mill operators in addition to the thou-
sands employed by the many railroad systems.
Almost 90 percent of the wheat available in the
United States is stored on the farms and in local
elevators of the central, north-central, and north-
western States. Even the first step of moving
grain from the farms by truck to the local ele-
vators is a tremendous task and requires the co-
operation of thousands of people. Since most
individuals think of wheat in terms of bushels,
thej' will comprehend more readily the size of
the task to be accomplished if they realize that
37,000,000 bushels of wheat must be moved and
loaded on ships each month to accomplish the
export of 1,000,000 long tons.
The complexities of the coal problem are just
( Uontinued on page 162 )
FEBRUARY 3, 1946
155
British-Greek Financial Agreement
STATEMENT BY THE SECRETARY OF STATE
On January 12, when a $25,000,000 Export-
Impoi't Bank loan to Greece was announced, the
United States Government addressed to the
Greek Government a note expressing sympathetic
interest in the financial and economic problems
of Greek rehabilitation and the belief that a
firm stabilization program instituted by the (rreek
Government could start tiie country on the ad-
mittedly difficult road to economic recovery. For
this heavy task the Greek people can take hope
from the knowledge of continuing outside as-
sistance so richly deserved by a nation whose
economy was deliberately shattered by the Axis
occupation forces, against whom the Greek nation
had offered such glorious resistance.
At the request of the Greek Government, con-
versations on methods of assisting Greek economy
have been under way in London for the past sev-
eral weeks between British and Greek officials.
Kepresentatives of the United States Government
have been present at these meetings.
It is gratifying that the agreement on financial,
economic, and industrial matters concluded in
London on January 24 between the British and
Greek Governments offers substantial financial
and economic assistance for the solution of some
of the most pressing problems in Greece. I am
also happy to find in the agreement the evidence
of a determination on the part of the Greek Gov-
ernment to put into effect a series of remedial
measures which should contribute to the long-
term welfare of the Greek people by laying a
solid basis for gradual improvement in the years
ahead.
I have noted with particular interest the in-
tention of the Greek Government to invite an
American citizen to become a member of the Cur-
rency Committee which will be set up by Greek
law to have statutory management of the note
issue.
Administration of Korea
Asked whether the original American plan for
Korea had projected a 10-year instead of a 5-year
trusteeship, and whether it had omitted provision
for the interim establishment of a Provisional
Korean Government, Acting Secretary Acheson,
at his press and radio conference on January 25,
said that the so-called "original American plan"
was not a plan in the sense that it proposed a
specific series of pi'oposals. He said it was a
paper which stated the general problem and di-
rected attention to possible lines of solution. In
that paper, he said, the thing that was stressed
was the necessity for a unified Korean adminis-
tration which was to be brought about by the
two commands, the American command and So-
viet command. It was not discussed in that paper
whether this administration should be a gov-
ernment or whether it should be something else,
but the important thing which was brought for-
ward for discussion was that it should be an
achninistration operated by Koreans and created
by the two commands. Mr. Acheson said that as
a result of the discussion of that paper, the pro-
posal for the Provisional Korean Government
was put forward by the Soviet Government and
readily accepted by the American Govemment.
A correspondent asked whether it was correct
that the United States first brought up the
Korean subject at the Moscow conference. Mr.
Acheson said that was correct and that in the
paper there was also discussion of the necessity
or desirabilitv or utility of a trusteeship. He
said it had been suggested that it might not be
necessary to have one but, if one was necessary,
a plan should be made for a period of five years.
If at the end of that time it seemed a further ex-
tension was unnecessary, that would be the end
of that, and if at the end of that time extension
was necessary, anotlier period of five years might
be considered. In other words, Mr. Acheson said
this again was not put forward as a concrete
plan but as a suggestion as to the basis of dis-
cussion. Asked whether the discussions between
the Russians and Americans were still going on
at S'eoul, IMr. Acheson said he thought they were.
The above statement in the financial agteeraent was
released to the press on Jan. 27.
156
DEPARTMENT OF STATE BULLETIN
Freedom of the Press— World-Wide
A discussion and explanation of the general question of
inlernational freedom of the press and communications and
what can he done to place that freedom on a firmer hasis
was broadcast on January 26, 1946 by Assistant Secretary of
State Benton and Federal Communications Commissioner
Paul Porter. The text of their conversation on the air is
presented below. The broadcast was the seventh in a group
of Stale Department programs in the NBC University of the
Air series entitled "Our Foreign Policy". Sterling Fisher,
director of the NBC University of the Air, was chairman
of their discussion. [Released to the press January 26]
Fisher : Last month, Mr. Benton, we discussed
with you the State Department's plans for its new
International Information Service. This time we
are tackling a broader subject — the general ques-
tion of international freedom of the press and
communications, and what can be done to place
that freedom on a firmer basis. This issue has
come in for a great deal of discussion in the last
year or two. Why, Mr. Benton, is this a matter
of such immediate importance?
Benton : Mr. Fisher, freedom of the press is
something that will always fire the imagination of
Americans, because it's so deeply imbedded in our
traditions. People have fought for freedom of
expression all through the ages. It is written into
our Bill of Rights — in fact, it's the very first point
there. I have no doubt people will still be making
broadcasts on freedom of the press in 1996 — or,
for that matter, in 2046. This is an essential part
of man's eternal struggle against ignorance and
oppression.
Fisher : Granted that "freedom of the press" is
a great battle cry. But why is it such an urgent
matter right now ?
Benton : I think that the line from Prime Min-
ister Attlee that is quoted as a keynote in the
Charter of UNESCO— the United Nations Edu-
cational, Scientific and Cultural Organization —
is the answer. You remember he said that "it is
in the minds of men that the defenses of peace must
be constructed". It has always been important to
seek a free flow of information among the peoples
of the world. But since August 6 of last year —
Hiroshima, if you remember — it has become a mat-
ter of paramount urgency. Freedom of the press
is freedom of men's minds to seek the truth. With-
out that, we can't build the defenses and can't hope
for a secure peace.
Fisher : I think you've made your point.
Benton : I'd like to quote something from Kent
Cooper, general manager of the Associated Press.
I'm having my troubles with the AP but I like
this quotation : "Every war of aggression in mod-
ern times has been preceded by distrust, then fear,
and finally hatred, all created by a systematic
poisoning of the news by the aggressor state."
That happened in Germany and Italy and Japan,
and I agree it was one of the main causes of the
war. At least, it made it possible for the aggressor
nations to sell their own people the idea of war.
Fisher : Mr. Porter, what do you say on this?
Porter : Freedom of the press is one thing on
which everyone agrees — in principle. Everyone is
for it. The question is how to bring it about.
We've certainly failed to bring it about interna-
tionally in the last 25 years.
Benton : In fact, ]\Ir. Porter, we've gone back-
ward, taking the world as a whole. Until the war,
the trend was away from greater freedom, not
toward it. There have been large areas of the
world where press freedom has been blacked out
altogether.
Fisher: You're speaking, Mr. Benton, of the
Axis countries?
Benton : Primarily. In Italy, for example, a
whole generation of human beings has grown up
without ever having known what a free press
means. Think of it — men 25 years old who can't
remember anything but Fascist censorship and
oppression until our troops arrived !
Fisher : Would you define press freedom then,
Mr. Porter, as freedom from censorship?
Porter: That's a fundamental part of it —
freedom to criticize, freedom to print the facts
without fear of censorship, except for security
reasons during wartime.
Benton : But when I was speaking of a trend
away from freedom in this field, I meant more
than freedom from censorship. The economic
developments of the last two or three decades
have added new restrictions on the free exchange
of information — such as quotas on books and mo-
FEBRUARY 3, 1946
157
tion pictures, for example. When I was in Lon-
don last November, the British Parliament was
discussing the fact that American movies were
taking 80 million dollars a year out of the Brit-
ish Isles. That's approximately the amount of
the annual interest on the proposed loan to
Britain. The British are very short of dollars,
and so Parliament was discussing quotas on
American films.
Fishek: And what other kinds of restrictions
are there?
Benton : There have been many restrictions on
the use of cable and wireless facilities, with which
Mr. Porter is even more familiar than I am.
Porter : We dealt with some of those restric-
tions at the Bermuda conference, of course.
Fisher: When we talk about freedom of the
press, we have a tendency to take a "holier than
thou" attitude. We assume that we, and a few
other nations, perhaps, have a complete press
freedom. Mr. Porter, is that true?
Porter : Our press isn't perfect, if that's what
you mean. I'd be the first to admit that. If
you look for it, you can find a certain amount of
distortion and coloring of the news — more in some
papers than in others. But only a few papers
are very bad otfendei-s — most of our press is
reasonably objective, in its presentation of the
news.
Benton : But distortion isn't the main prob-
lem, Paul. Part of the press distorts the news,
it's true; but that doesn't matter too much be-
cause other parts of the press can step up and
say, "Look here, that fellow is cock-eyed." Dis-
tortions can be answered. In fact our American
concept of freedom of the press allows for the
rankest distortion, on the theory that if there's a
free voice for everyone, the truth will eventually
win out.
Fisher: Then what is the main problem, Mr.
Benton ?
Benton : Our main limitation here in America
is an economic one. It's hard to break into the
newspaper, radio, and movie industries because
of the large investment that is required, and the
many restrictions against the newcomer which
make it tough for him to move in and compete.
This limits the number of voices that can speak
effectively. The day of the soapbox is over.
Porter: In radio, of course, the opening up of
about 5,000 new FM channels is going to help.
That means there will be room for a lot of "little
fellows" to break in.
Benton : Yes, that is a good thing, but in the
newspaper and movie businesses the tendency has
been toward bigness — toward fewer and fewer
voices.
Fisher: One more point before we leave this
genei'al question. Mr. Benton, doesn't the Soviet
Union have an entirely different idea of the role
of the press from ours, and isn't this an obstacle
to world-wide agreement on freedom of the press?
Benton : I wouldn't put it quite like that, Mr.
Fisher. It's true that the Soviet Union, China,
and many other countries have a high degree of
state control or censorship of the press. China
is committed to changing that. China has al-
ready lightened the censorshii^ of outgoing news
and has said she would do the same internally
for her own press.
Fisher: But what about the Soviet Union?
Benton : The Russians not only frankly admit
but boast that their concept of freedom of the
press is different from ours. They even deny
that ours is freedom. They point out that the
Soviet Constitution guarantees any group of
workers the right to issue their own papers and
magazines and the materials to do it with. To
us, that means state subsidies and state control,
which are fundamentally opposed to our concept
of an independent press, free to criticize the
Government. The Russians, for their part, can't
understand why we allow American newspapers
to i^rint attacks on our wartime Allies. They take
such press attacks very seriously, just as we some-
times are too prone to assume that Marshal Stalin
personally writes or approves of every word of
every article that appears in Pravda or Izvestia.
And the Russians think that our press is domi-
nated by the wealthy class and the advertisers.
Fisher: Do you see any hope of bringing the
two viewpoints closer together?
Benton : Yes, I do see hope. It will undoubt-
edly be a gi'adual process. It will be easier to
get agreement on some things than others. I
hope that the time will come when we shall get
a free flow of news between the Union of Soviet
Socialist Republics and the United States. Last
year a committee was sent around the world by
the American Society of Newspaper Editors. The
report of that committee is hopeful about there
being a basis for progress toward agreement on
freedom of news transmission.
158
DEPARTMENT OF STATE BULLETIN
Fisher: Did the committee of editoi-s reach
any conclusior. on the general world outlook for
press freedom?
Benton: Yes, they were reasonably hopeful.
They concluded that in the world as a whole "the
spark of press freedom is alight". Now that the
war is over, we can hope that all free countries
will px'ogress in the direction of greater liberties
for their people.
Fisher: Now that we've made clear what we
mean by a press . . .
Benton: I think iwe ought to broaden our
phrase. Let's call it freedom of communication.
Radio, movies, books — they're all included.
Fisher: All right. Now, the key question, as
I see it, Mr. Benton, is what is being done to get
freer communications? William Philip Simms
alleged just the other day that the various for-
eign ministers have been hiding behind a smoke
screen, saying, "Oh ! Yes ! We favor freedom of
the i^ress", but doing nothing to bring it about
through the United Nations Organization. "Wliat
is the State Department doing?
Benton : Of course, this isn't a job just for
the State Department. It's one for everybody,
at least everybody and every Government agency
concerned with communications. Not only the
State Department but Congress, the FCC, and
our delegations to the various United Nations
conferences are doing something about it. In
the State Department we've attacked the problem
on three diiferent fronts: the economic front, the
political front, and what you might call the
"operating front".
Fisher : Let's take the economic front first.
Benton : The outstanding achievement on this
front has been the Bermuda Telecommunications
Conference. Paul Porter, who was down there as
vice chairman of the American Delegation, can
tell you about that. ]\Ir. Porter carried the load
and was the key figure of the conference — at least,
in our part of it.
Fisher : Just why, Mr. Porter, was the Bermuda
conference so significant?
Porter : It was significant because the problems
of high cost and bottlenecks in transmitting news
and telegraph messages between the United States
and the British Empire — a problem which has
vexed newsmen and other telegra])h users for 25
years — was solved in 10 days over the conference
table in Bermuda.
Fisher: Can you tell us a little about the prob-
lem itself before you go into the solution ?
Porter : Well, before the war all telegraph mes-
sages from the United States to points in the Bi'it-
ish Empire were funneled through London or
some other British point. There were no direct
radio circuits from this country to other parts of
the British Empire because the British policy re-
quired the use of their own extensive cable facili-
ties, which hooked up the whole Empire. The re-
sult was a very high cost, which kept commercial
correspondence as well as news transmission be-
tween British territories and the United States at
too low a level.
Fisher: How about an example or two?
Porter : The ordinary telegraph rate from New
York to London was 20 cents a word, but the rate
from New York to Ceylon was 55 cents, the rate
to Singapore was 89 cents, and the rate to Sara-
wak, in Borneo, was $1.05. The press rate was
about a third as much, but it was still too high
to encourage the transmission of news to and from
the British territories.
Benton : But the British had what they called
a "pennj' press rate".
Porter: Yes, but that applied only between
British points. With the penny press rate, a press
message could be sent between any two points in
the British Empire for a penny a word, British
money, which is not quite two America)! cents.
American newspapers could take advantage of this
low rate only indirectly and by the sacrifice of
speedy and direct service. An American corre-
spondent in Bombay sending a news story to New
York could send it over British facilities to Mont-
real at two cents a word. But at Montreal, his
story would have to be reforwarded to New York
b}' an agency maintained by the newspaper. By
using indirect British facilities in this way, the
news story could be transmitted to New York for
a little more than 3 cents a word. But if the news-
paper correspondent wanted to send that same
news story from Bombay directly to New York
over the direct radio circuit, it would cost about
13 cents a word.
Benton : That direct radio circuit to India,
Paul, was one of the many circuits established
during the war with British points where our
soldiers were stationed.
Portjor : Yes, but the Indian circuit as well as
the circuits to several other British Em2:)ire points
were agi'ced to by the British only for the war
FEBRUARY 3, 1946
159
period plus six months. They made an exception
to their regular policy only because of wartime
conditions.
Fisher: Well, Mr. Porter, how did the Ber-
muda conference change all this?
Porter: In the first place — and this is funda-
mental— the British readjusted their pre-war pol-
icy by agreeing to continue all the essential point-
to-point radio circuits developed during the war.
For example, direct radio circuits between the
United States and Australia and New Zealand
and India are to be kept. In addition, the British
agreed to direct circuits from this country to Ja-
maica and Palestine, and to the Union of South
Africa, Hong Kong, Malaya, and Ceylon, if
traffic studies or conditions justify them.
Benton : In other words, the British abandoned
their pre-war monopoly position and recognized
that in this shrinking world we need faster and
cheaper communications directly with the various
British territories, so that we can get quicker and
better news coverage of them and give them bet-
ter news coverage of ourselves.
Porter: Exactly. The British have adjusted
their policy to the principles of an expanding
world commerce. The rate adjustments they
made were also very important. Beginning
April 1, or earlier, the ceiling price for tele-
graph messages from any place in the United
States to any place in the British Empire will
be 30 cents a word, instead of up to $1.05, and
the press rates muII be 6I/2 cents or less a word,
instead of u]} to 40 cents a word. An American
newspaper will now be able to send a 100-word
news story from any place in the United States
to any place in the British Empire for $6.50,
where before the same-length story would have
cost $16 from New York to Hong Kong, $11.50
to New Delhi, $18.50 to South Africa, and $9 to
Melbourne. It will be easier to exchange news
not only with British territories but with some
other areas as well. The British agreed to re-
nounce certain exclusive rights they had obtained
in Greece and Arabia so that direct circuits could
be established between the United States and
those countries. That means that American com-
panies can come in there.
Fisher : Mr. Porter, what concessions did we
make? We must have given them something in
return.
Porter: Well, Mr. Fisher, the reduction of
rates is a mutual proposition, and lower rates to
the United States will benefit British commerce,
and their press as well. The increased volume of
traffic which is generally stimulated by reduced
rates can be expected to increase their gi-oss reve-
nues from their communications system. And
don't forget that it was to their advantage, as
well as ours, to reach an understanding with us
on disputed matters, rather than to permit dis-
putes to work themselves out through destructive
competition.
Benton : I think you ought to say a word about
the multiple-address sytem, because that will
mean still greater economy in press transmission.
Porter: At Bermuda, the British agreed to
encourage the use of multiple-address press trans-
missions from the United States. To give you
some idea of the saving that is possible, one Ameri-
can wireless company has proposed to the FCC a
rate amounting to only three eighths of a cent a
word for multiple transmissions ! It would simply
beam the news toward a given country, and all
the subscribers there would pick it up and use it,
or some central agency would pick it up and relay
it to them.
Fisher: We've made great progress toward
cheaper press rates, then.
Porter: Yes, it's up to the American news
agencies now to take advantage of these rates in
selling their services.
Fisher : Well, Mr. Porter, all this will do a lot to
facilitate communications with the British areas.
Porter : Its significance is a lot wider than that,
Mr. Fisher. This is only one step toward a ra-
tional world-wide communications system. The
principles of freedom of information which the
British accepted at Bermuda were adopted by the
American republics at the Inter- American Radio
Conference at Rio de Janeiro earlier last fall.
These agreements have paved the way for world-
wide accei^tance of the same principles at an inter-
national communications conference we expect to
hold sometime this year. And we must not over-
look the fact that the field of communications, like
so many activities today, is dynamic and global in
nature. The complex problems which exist can be
successfully solved only by international under-
standing such as we have been discussing.
Fisher : Doesn't that suggest that the interna-
tional conference you mention, or some permanent
international communications body, should be
made a part of the United Nations Organization?
160
DEPARTMENT OF STATE BULLETIN
Porter : Perhaps. It would fit very well into
the Economic and Social Council's list of affiliates.
Fisher : Well, interesting as all this is, I think
we've spent enough time on the economic aspects
of free communication.
Pokter: I'd like to add just one thing: The
Bermuda conference succeeded beyond all expec-
tations. But the improvement of communications
is not an end in itself. It is a means to an end —
the real end bei)ig to bring the democratic nations
of the earth closer togethei' by making possible a
freer exchange of ideas, more complete under-
standing, and the development of better commer-
cial relations.
Fisher : Right. Now, Mr. Benton, it's your
turn. What about the political approach to free-
dom of the press, or rather, freedom of communi-
cations? What is the State Department's posi-
tion on this ?
Benton: The State Department plans to do
everything within its power along political or
diplomatic lines to help break down the artificial
barriers to^ the expansion of private American
news agencies, magazines, motion pictures, and
other media of communications throughout the
world. And of course we welcome information
from abroad through the same channels. It's a
reciprocal process — a two-way arrangement.
Fisher: What about the crusade waged by
Hugh Baillie of the United Press, Kent Cooper of
the Associated Press, the American Society of
Newspaper Editors, and others for world-wide
recognition of certain basic press freedoms?
Benton: They have done a great job in helping
bring to the attention of the public the need for a
free flow of news among all nations, without cen-
sorsliip, and without discrimination in transmis-
sion rates or in making news available at the
source. The State Department endorses and sup-
ports these objectives.
Fisher : But what has been done, Mr. Benton,
toward translating these aims into reality?
Benton: To try to answer that I'll have to go
back a bit. Freedom of the press — and freedom of
exchange of information generally — is an inte-
gral part of our foreign policy. Back in 1944, if
you will recall. Congress passed a joint resolution
endorsing "the world-wide right of interchange of
news by news-gathering and distributing
agencies . . . without discrimination as to
sources, distribution rates, or charges . . .
this right should be protected by international
compact."
Porter: Both political parties endoreed the
same j^rinciples in their 1944 platforms.
Benton : Yes, Paul, and the following spring
the inter-American conference at Chapultepec de-
clared for the ending of all peacetime censorship
and for the free transmission of all news and
information in this hemisphere. Our Delega-
tion, of which I was a member, gave that resolu-
tion its strongest support. And President Tru-
man, in his Navy Day speech last October, said
that one of the main points in our foreign policy
was to ". . . promote freedom of expression
and freedom of religion throughout the . . .
world".
Fisher: What progress has been made, Mr.
Benton, toward United Nations action to guaran-
tee freedom of communications?
Benton : The United Nations Charter has as
one of its objectives the promotion of "human
rights and fundamental freedoms". Under the
Economic and Social Council, which has just been
set up: by the United Nations General Assembly,
the Charter provides for a Commission on Human
Rights. It is my understanding that this Com-
mission will outline basic goals. Freedom of
speech is one of the fundamental freedoms, and
this includes freedom of the press and of com-
munications. The then Secretary of State said at
San Francisco that "When a Commission is estab-
lished, the United States Government will urge
that it promptly study the means of promoting
freedom of the press, freedom of communication,
and a fuller flow of knowledge and of informa-
tion between all peoples. In the meantime, we
shall press forward our active efforts to further
these objectives in every practicable way".
Fisher : And that still stands ?
Benton: It certainly does. We have "pressed
forward our active efforts" at every opportunity.
At the Potsdam Conference last July, our Dele-
gation, headed by President Truman, was instru-
mental in inserting several important clauses into
the communique. Freedom of speech, press, and
religion were guaranteed to the Germans, subject
to security regulations, and representatives of the
Allied press were guaranteed full freedom to re-
port to the world on developments in Poland,
Rumania, Bulgaria, Hungary, and Finland.
Fisher: There were a good many complaints,
FEBRUARY 3, 1946
161
Mr. Benton, that these guaranties were more or
less honored in the breach, in tlie Balkans.
Benton: Yes, I know. Secretary Byrnes took
up some of these complaints with Foreign Com-
missar Molotov in London last fall. They have
been under discussion since then. The situation
has improved.
Fisher: Now, an interesting question has been
raised at the current United Nations Assembly
meeting in London. According to the papers, one
of the delegates from the Philii^pines has pro-
posed that the Assembly call an international con-
ference on freedom of the press.
Benton: I believe that proposal will be dis-
cussed when the Assembly has finished its organ-
izing session in London and reconvenes here in
the United States a few months later. Our dele-
gates to London will do everything possible to
speed up the organization of the Economic and
Social Council and its Human Rights Commission
to help secure agreement on world-wide objectives.
Fisher : But what about UNESCO— the United
Nations Educational, Scientific and Cultural Or-
ganization? "Where does that fit into the
picture ?
Benton : UNESCO can perhaps make the
greatest contribution of all to the freedom of com-
munication. One of UNESCO's purposes, stated
in its Charter, is to "recommend such interna-
tional agreements as may be necessary to promote
the free flow of ideas by word and image".
UNESCO can become a dynamic force for free-
dom. That is the world's hope for UNESCO.
It will press for action by all countries every-
where. But it will of course be some time before
UNESCO is functioning on a full scale.
Porter: If I might sound a slightly skeptical
note —
Fisher : Go right ahead, Mr. Porter.
Porter: I'd like to state my oiDinion, for what
it's worth, that all the conferences and resolutions
and bills of rights that you can shake a stick at
won't be worth two cents as far as getting any
country that doesn't have a free press to establish
one. Only the people of the country can do that.
You can search the history books and never find
an example of freedom being handed to a people.
They always have to demand it or fight for it them-
selves.
Fisher: Except the Japanese under MacAr-
thur?
Porter : Maybe. It remains to be seen whether
tliey'll keep it.
FiSHEB : Mr. Benton, what about the suggestion
that guaranties of freedom of the press be written
into the peace treaties with former enemy coun-
tries?
Benton : "We should do everything in our power
to achieve a free flow of news, in line with our
policy as shown by our actions at Potsdam and in
Japan. As far as internal provisions for press
freedom are concerned, that will be up to the na-
tions themselves. Freedom is something that
can't be imposed from the outside, as Paul Porter
just said. But I think that free access to news
sources, and freedom to transmit news from one
country to another without discrimination, might
very well be included in appropriate agreements
or treaties covering our relations with former
enemy countries.
Fisher : Then there is the proposal for a gen-
eral international agreement covering the free
exchange of news.
Benton : We shall certainly support efforts to
get international agreement in this field. The
United Nations and UNESCO— its educational or-
ganization— both have freedom of expression as
a basic objective, as I said. "We should do every-
thing possible to spell out this objective, through
these United Nations channels, in a general agree-
ment on freedom of information.
Fisher : Well, I think that covers the political
side, Mr. Benton. But you mentioned a third
point of attack on this problem.
Benton: Yes, on what I call the "operating
front". The State Department plans to do its best,
if Congress approves, to fill certain gaps left by
private American activities abroad. Some parts
of the world still have practically no news from
American sources, except for what our Govern-
ment can supply. But the State Department's
function will be purely supplementary to the activ-
ities of private agencies.
Fisher : "Wliich are the gaps ?
Benton: Good examples are the Balkan coun-
tries and southeast Asia. There the short-wave
radio is almost the only way of getting American
news through.
Fisher : And what about the Soviet Union ?
Benton : The Soviet people get some news about
America indirectly through the Soviet Govern-
ment News Agency, Tass, which is furnished
162
DEPARTMENT OF STATE BULLETIN
American news by the AP and UP, and they get
some first-hand background about America
through a magazine which the State Department
publishes in Russian and which a Soviet Govern-
ment agency distributes in the Soviet Union. We
are now considering Russian-language news broad-
casts. Ambassador Harriman has I'ecommended
such broadcasts, and they may well contribute to
American-Soviet understanding. The truth is the
Russian people get very little news about Amer-
ica— in fact, far too little. Further, all reports
indicate they are eager for such news.
Fisher : Do you think, Mr. Benton, that short-
wave broadcasting by the Government will be con-
tinued on its present level?
Benton: That's for Congress to decide. Ster-
ling. We've cut our operations drastically from
the wartime level, as I told you on a previous
broadcast. I believe the short-wave job abroad
must be done. There is an unfilled hunger for news
from Ameiican sources, and short-wave broad-
casting is often the only vehicle we have which gets
through. I am not opening up for discussion the
question of the AP and UP wire service for our
international broadcasting, which I regard as
vital, because the subject is too big to cover briefly
on this i^rogram.
Fisher: To summarize the discussion then, the
United States is taking a strong stand on behalf
of freedom of communications throughout the
world. It has acted to make jjliysical communi-
cations more direct and less expensive, starting
with the Bermuda conference. This means re-
ducing one of the most important barriers to the
movement of news. Is that right, Mr. Porter?
Porter : Yes, we shouldn't underestimate the
importance of the economic side. You have to
make communication possible and practical be-
fore you can have a free exchange of news.
Fisher: The Government is also prepared to
press vigorously forward to try to obtain general
acceptance of such principles as freedom from
censorship and from discrimination, in making
news and communications facilities available.
The Government's role in news distribution is
regarded as purely that of supplementing the
private news agencies.
Benton: I think it's safe to say that in the
months to come our Government will play a lead-
ing role in the fight against restrictions of all
sorts on international communications. Only if
there is a free flow of ideas from one nation
to another can we hope to secure that mutual
understanding among the peoples of the world
upon which we can erect the defenses of peace
in the minds of men.
Fisher: Thank you, Mr. Benton and Mr. Por-
ter, tor a clear analysis of the question of inter-
national freedom of communications.
Announcer: That was Sterling Fisher, Direc-
tor of the NBC University of the Air. He has
been diseussmg ''Freedom of the Press — ^World-
Wide" with Mr. William Benton, Assistant Sec-
retary of State for Public Affairs, and Mr. Paul
Porter, chairman of the Federal Comnmnications
Commission and vice chairman of the United
States Delegation to the Bermuda Telecommuni-
cations Conference. The discussion was adapted
for radio bv Selden Menefee.
STILL WELL — Continued from page 154.
as great but involve people in different sections
of the United States. The two problems of move-
ment added together produce activity felt di-
rectly or indirectly in almost every village, ham-
let, and countryside of the whole ITnited States.
It is the total problem which the Government
officials are now attempthig to solve.
It is not enough, however, that a group of
Government officials shall band themselves to-
gether in mutual effort to fulfil this Government's
responsibilities to our liberated Allies. The task
is so great that it requires the combined efforts
of all the people of the United States. Even
those citizens who are not directly connected with
any phase of the production, movement, or export
of these essential civilian supplies should take
an active and direct interest in tlieir respective
communities concerning the progress of our total
supply effort. Officials of the Department of
State and other agencies of the Government di-
rectly concerned with this problem will endeavor
to keep the public well informed through the
press and radio of all the pertinent facts available.
The people of the United States are faced with
a new challenge to tlieir indomitable will to ac-
complish this task, no matter how great, so long
as it will help to relieve the suffering of hu-
manity. We should translate into action the
President's statement, "We must help to the limits
of our strength. And we will."
FEBRUARY 3, 1946
163
Future of the Foreign Service
By SELDEN CHAPIN
EFFECTIVE ACTION by the United States on the
road to international cooperation requires
that it be represented by the best men it can
mobilize and train for the job. The United
States Foreign Service will be the cutting edge,
as well as the first line, of our representation
abroad. The Foreign Service must inform the
President and the Secretary of State accurately,
impartially, and fully concerning political and
economic conditions abroad, evaluate the forces
shaping events, warn of any developments which
menace international peace and which directly
imperil American interests, and propose means by
which our interests may be protected and our
objectives advanced. In this respect it must be
reporter, interpreter, and counselor.
The Service must make effective the policy of
the United States by negotiation and by the ex-
eieise of American influence, must represent the
character and purposes of the American people to
the other people of the world, must protect
American citizens and interests and promote
American trade. In the execution of these tasks
it is the chief agent of the American Govern-
ment abroad.
The Service must work with and assist the
specialized missions which play an important part
in international affairs and must provide con-
tinuity and an over-all supervision of the execu-
tion of foreign policy.
The Service must continue to perform or to
direct the traditional functions in respect of citi-
zenship and nationality, immigration, shipping,
and documentation of merchandise which make
up a large part of the work in the field. In this
respect it is primarily a "service" organization.
The duties I have outlined make up the broad,
if traditional, frame of reference of a Foreign
Service officer's career. His service in the new
diplomacy will however be very different from
that in the past, not only because, as I have indi-
cated, his work will be of more vital concern to
the Nation in winning the peace, but also because
he will have to perform new work of a specialized
character under different conditions. Durmg the
war, officials of executive departments frequently
entered into direct contact with their opposite
numbers abroad. The myriad Allied combined
boards for supply and shipping, lend-lease, eco-
nomic warfare, finance, and intelligence drew
diplomacy out of the chancery into new adven-
tures.
The career Foreign Service under these condi-
tions must be able to contribute something more
to the conduct of foreign relations than efficient
secretariats and the rituals of old-school-tie diplo-
macy. It must know the substance of the special-
ized work which the specialists are called upon to
jjerform and must be equipped either to partici-
pate directly in such activities or to assist, guide,
and coordinate them. If it cannot, it may well
continue as a distinguished relic of the nineteenth
century, or as the frill on the lamb chop, but the
peculiar contribution it has to make in know-how,
in discipline and continuity, in the arts of nego-
tiation will go for nought.
There are perhaps two broad and distinct con-
ceY>ts of the present and future roles of foreign
offices and traditional foreign services. One en-
visages a foreign office as a sort of general staff,
estimating situations in foreign policy, coordinat-
ing all information — strategic, economic, and
political — relating to specific problems in inter-
national relations : e. g. a proposal for five-power
consultation on Near Eastern dependent areas —
and delegating field operations to a group of ex-
ecutive agencies, of which the career Foreign
Service is merely one, although it has supervisory
and coordinating responsibilities. To some extent
this has been the pattern of our Department and
Service during the war years. I am frank in say-
ing, however, that the arrangement has not been
entirely satisfactory, in either the public interest or
Excerpts from an address made before the Hartford
Foreign Policy Association, Hartford, Conn., Jan. 21,
and released to the press on the same date. Mr.
Chapin is Director of the Office of the Foreign Service,
Department of State. Requests for complete texts of the
address should be sent to the Division of Research and
Publication, Department of State.
164
DEPARTMENT OF STATE BULLETIN
that of the several agencies and of the Depart-
ment. The experience of the war has illustrated
the confiision, misunderstanding, and irritation
which can be caused abroad if a number of inde-
pendent officers representing various agencies are
acting semi-independently of one another. Fur-
thermore, the In'dra-headed aspect of our repre-
sentation tends to confuse the foreigner with whom
we have to deal.
The other concept of the operation of a foreign
office contemplates that it would be a large and
complex organization, including in its own divi-
sions technicians and specialists qualified for, and
engaged in, tasks far outside the accustomed and
traditional orbits of formal diplomacy. Certainly
all foreign offices will expand to some degi-ee along
this line after the war. Yet the pitfalls are ob-
vious. As one observer put it recently, "a State
Department cannot take on operating functions
and the remnants of agencies in dissolution, as the
present one is doing, without running the risks that
come with trying to turn a liighly specialized
business into a general store.''
It would not be correct to say that any clear-cut
decision has been made between these alternatives
by the American Department of State. It seems,
however, to be tending more toward the latter
than it has in the past, and we are steering care-
fully to avoid the pitfalls. Recently we have taken
over the functions and part of the personnel of
OWI, the Office of Inter-American Affairs, the
Foreign Economic Administration, and a few
people from OSS — tlie Office of Strategic Serv-
ices— and the Surplus Property Administration.
These new tasks mean new problems for the
Foreign Service in the field of economics, for ex-
ample. The Foreign Service officer will be doing
things quite different from the trade promotion
of the past. Instead of the weapons in the arsenal
of economic warfare, he will be using peacetime
tools, in aid of the American economy, as safe-
guards against future wars, and factors aiding a
more equitable distribution of the world's goods.
The experience gained in evaluating the economic
position of an entire country by a hundred new
techniques will help to open new horizons to the
Foreign Service officer.
It was Canning whose audacious theory that
public opinion should actually be invoked in the
councils of diplomacy caused Metternich to de-
scribe him as a "malevolent meteor hurled by
divine providence on Europe". The power of pub-
lic ojiinion has grown mightily from Canning's
day to that of the Office of War Information.
Today's relations between states ai'e increasingly
relations between peoples. The Foreign Service
officer will have to mesh this force with diplomacy,
and he will need to participate in the activities of
the cultural and informational agencies.
Our foreign policy is bound to involve a rela-
tively large United States force in being whether
solely for national defense or as contingent com-
mitments under the United Nations Security
Council. In the future the Foreign Service ofiicer
must know more about our military and naval
establishment and its policies.
I have said enough, I believe, to show why the
Foreign Service must be organized and stafl'ed
somewhat differently than in the past. I wish I
were able to report to you that our first-line service
is in shape to do the job which lies ahead. I should
like to say that we are ready to step on the stage
of international affairs with our best foot fore-
most; that we are prepared, right now, to under-
take the tasks of the new diplomacy, or even to
carry on the old. The truth is that we are not but
tliat we are energetically trying to be. We have
been working intensively on the most comprehen-
sive Foreign Service legislation since the Rogers
act of 1924, a new Magna Charta which effectively
turns the service inside out and which we hope to
present to Congress in tlie near future.
Many, if not most, of our alleged shoi'tcomings
are due solelj' to lack of manpower. Our pre-war
service of 833 would be too small for the present
job ; we estimate that between 1600 and 2000 will be
required. Actually, we have only 750 men in the
cai'eer Foreign Service today. During the war the
needs of the armed forces, of course, took preced-
ence, and we suspended recruiting of young men
after 1941. We did mobilize a kind of war i-eserve,
the Foreign Service Auxiliary, who were for the
most part specialists in various fields. Many of
these men will be lost to us as the war emergency
draws to a close and jobs in private employment at
higher salaries beckon.
We plan to combat our manpower shortage in
various ways; in November of last year we held
examinations exclusively for members and veter-
ans of the armed forces and will probably hold
others this spring which should yield us some
600 picked men altogether from among thousands
FEBRUARY 3, 1946
165
of candidates. "We have also just sent to the Con-
gress a bill which would authorize the admission
into the cai'eer service during a two-year period
of up to 250 outstandingly qualified officers from
the Department of State, the armed forces, and
the other federal agencies, at any grade commen-
surate with their age, experience, and qualifica-
tions. We would administer this bill, if enacted
into law, with due regard to the career principle.
This recruitment should invigorate the Service by
the introduction of fresh blood and should bring
into it a number of special skills. Without these
it could not hope to cope with its new responsibili-
ties nor to avoid stagnation.
We also have a plan which is not yet threshed
out in detail to establish what we conceive to be
a "staff" corps of specialists who will be officers
of the Foreign Service, enjoying the same privi-
leges as the diplomatic and consular officers, who
may be known as the "executive", or "line", branch.
This new branch would include some members of
the present Auxiliary service, some of the intelli-
gence, informational, and cultural experts now
serving in interim classifications, and the members
of our present administrative and technical corps
as established by the act of May 3, 1945. There
would be every opportunity for interchange and
transfer between the two branches and with the
Department of State. We shall, however, see that
what is now called the career Foreign Service in-
cludes a heavy proportion of specialized talents.
There are already within that service brains and
aptitudes for most of the special tasks of the pres-
ent era, provided only that the Department gives
adequate training and opportunity to these skills.
We must retain in our Service most economic func-
tions, in short to become an economic service. One
does not have to be a Marxist to recognize that in
these days political and economic policies are
inextricably entwined.
There will also be provision for men to come into
the Service as reserve officers from elsewhere in
the Government or private business on temporary
assignment: for example, a study of metallurgy
behind the Urals or of malarial control in the Nile
Delta or the geology of the Arabian peninsula.
In addition to these attacks on the manpower
problem we are planning legislation to cover prac-
tically every phase of Foreign Service reform. At
present the Service is undermanned, clogged with
deadwood, insufficiently trained, underpaid, inad-
equately housed, and clumsily administered. We
plan campaigns in all these sectors.
If the Service is to reach a maximum level of
efficiency, a promotion system should be estab-
lished which provides for advancement of officers
with emphasis on merit rather than seniority, and
for the separation from its ranks of officers who
are not advanced within a certain period.
We have made a careful study of the "selection
out" promotion system of the United States Navy
and we propose to adapt it for our needs. There
will be a system of minimum and maximum serv-
ice in the various grades of the service, and officers
who are not promoted after serving a maximum
time in grade will be eliminated, with an annuity
or lump-sum payment depending on the length of
service. It is also planned to lower the retirement
age for officers in Class I and below from 65 to 60
years.
Installation of the new promotion system will
involve a complete review of the personnel-admin-
istration methods now in force, and we will draw
on the experience of private industry and other
Government departments.
It is clear that we must mobilize for the Foreign
Service the very best brains and character in each
generation and train them at a markedly higher
level of requirement and in a much more serious
and impressive manner than was ever reached un-
der the comparatively easy circumstances of the
past. Our opinion is that, beyond initial orienta-
tion and indoctrination, a kind of "in service"
training must be continued throughout a Foreign
Service officer's career both for the sake of effi-
ciency and to sustain morale. He should at dif-
ferent stages of his career attend courses analo-
gous to those of the Army and Navy Staff Colleges
and War Colleges. We believe that this instruc-
tion should begin at the university-graduate level
and not in an undergraduate academy. It is for
this reason that we do not subscribe to the idea
of a West Point or Annapolis for the Foreign
Service. The basic undergraduate requirements
of the Foreign Service are not technical. The pri-
mary requirement is a knowledge of the system of
ideas concerning the world and man which belong
to our time and the roots from which these ideas
have developed. The basis for a Foreign Service
education can be most advantageously obtained at
the best colleges and universities long established
and functioning in the various regions of the
166
DEPARTMENT OF STATE BULLETIN
United States. An undergraduate Foi-eign Serv-
ice Academy would tend to stamp future Foreign
Service officers in one mold and might easily breed
a caste spii'it, the very thing that the Department
has prevented from arising in the Foreign Service
through a selection of men from all segments of
American life, as well as from diversified educa-
tional backgrounds and different sections of the
country. In this connection it is interesting to
note that in 1941 when our last public examina-
tions were given there were 440 candidates from
164 colleges and universities designated to take
the examination. The 37 successful candidates
represented 21 educational institutions and 14
States. In 1940, 483 candidates from 168 colleges
and universities were designated for the examina-
tion. The 45 successful candidates represented 26
educational institutions and 19 States.
All training programs in the Foreign Service
would be directed by a foreign-staff college or
center of training studies which we plan to call
tlie Foreign Service Institute. This Institute
would direct in-service training throughout an
officer's career and would liandle orientation
courses for beginners as well. It would exchange
students and faculty with the Army and Navy in-
service institutions.
In its higher echelons the school would be a staff
college or institution comparable to a war college.
At these levels it would probably administer rela-
tively little instruction on its own premises but
would arrange for Foreign Service officers to work
and consult at high levels, not only in tlie Depart-
ment of State but in any agency, in any business,
research organization, or university where pos-
sibilities exist for widening the background of the
Foreign Service officer. The staff college, although
closely affiliated with the Department and using
classified material in its seminars, should never-
theless enjoy a certain autonomy. It should thus
maintain sufficient academic prestige to attract
the best staff. The Institute would be continually
engaged in doing basic research on policy, and we
conceive that its projects would be taken into ac-
count in the actual formation of policy. At any
rate this basic research will at least counterbalance
the necessarily more hurried day-to-day thinking
in the Department of State by a broader view and
tlie synthesis of piecemeal data.
If this program is followed some of the sliort-
comings of the Service will be corrected. Officers
will have training equipping them to take the
"strategic" as well as the merely "tactical" view in
their reports. Too often in the past, reporting
from the field has neglected the basic long-range
study in favor of the "spot" report.
Another important reform of the Service is its
"Americanization", if I may use tlie term. On this
point all who have inspected, studied, or been
members of the Foreign Service are unanimous.
In order to preserve contact with America, more
officers must be brought home more often. Long
absences of officers from this country and lack of
understanding in regard to departmental policies
are responsible for a sense of remoteness, frustra-
tion, and general inadequacy as a Service truly
representative of the United States. It is pro-
loosed to establish by statute a fixed ratio between
home and field service, as well as to provide for
adequate home leave at appropriate intervals. In
this respect during the war the Foreign Service
was notoriously disadvantaged in comparison with
officials in other agencies. A tour of duty in the
United States will not be confined to service in
the Department. Officers will be sent for special
service anywhere in the country, for example to
the branch offices of the Dei^artment of Commerce,
other Federal or State jobs, or training or observa-
tion tours with private industry.
The administration of the Service particularly
as regards personnel has for a long time been
rendered difficult by the excessive number of
grades, or classes, into which it is hierarchically
divided. The present system of nine classes es-
tablished by the Rogers act of 1924, with the low-
est class subdivided administratively into three,
is an outgrowth of the old Consular Service, which
was amalgamated by this act with the separate
Diplomatic Service to form the present Foreign
Service. The current classification structui'e,
therefore, was established as a solution to a prob-
lem existing in 1924, and not because of any in-
trinsic advantage in having that number of
grades in the Foreign Service. Our new plans
recognize that there are not as many gradations
in relative responsibility of jobs in the Service
as the existing 11 grades would indicate. In the
future there will be only 6 grades with an addi-
tional class of minister actually within the For-
eign Service. An officer may have the rank of
minister without necessarily being accredited to
a mission abroad. The top goal of a diplomatic
FEBRUARY 3, 1946
167
career will thus actually be within the career
itself rather than outside it ; at present an officer
resigns from the Service on becoming a minister.
The new distribution of ranks will bring the
Service into line with the Army and Navy. It
will give a longer opportunity to judge the per-
formance in each class, more administrative flexi-
bility in assignments, and the possibility of more
adequate recognition within grade.
This is a good place to point out that out of
some 56 chiefs of mission, including the special
missions in Berlin, Vienna, and capitals of some
countries with which we do not now have diplo-
matic relations, about 64 percent come from the
ranks of the career service. This is a considerable
improvement, from the Service point of view,
over conditions obtaining in the old days, but if
we expect the best men to come into, and remain
in, the Service we must not restrict unduly the
typically American opportunity — a fair chance
to rise to the top. I personally would like to see
the appointment of more of the so-called "career
men" ; at the same time I concede whole-heartedly
that if there are jobs in our diplomacy which
cannot be best filled by men from our Service
then the best-qualified men should be sought
wherever they may be.
It is still unfortunately true, however, that
regular Foreign Service officers who do not have
private means are at a disadvantage in competing
for the top posts with wealthy men from outside
the Service. Believe it or not, our salaries for
ministers and ambassadors were established in
1856 and have not been changed since. Chiefs
of mission of relatively small countries are often
better paid than ours. In the upper brackets the
comparison is startling; Ambassador Winant in
London gets a salary of $17,500 subject to income
tax, plus tax-free allowances to cover such matters
as rent amounting to about $12,000 dollars. The
British Ambassador in Washington quite rightly
receives about $70,000 dollars a year, which is
tax free.
In the lower ranks of the Service, also, the men
are notoriously underpaid with respect to their
obligations, and we have not yet succeeded, despite
successive reforms, in making it possible for a man
without independent means to serve as effectively
as he should.
.Since 1924, there has been an over-all expansion
in level and pattern of living costs. Industrial
salaries and salaries in emergency Government
administrations have increased and been adjusted
to meet this expanded way of living. A further
increase in Government salaries is desirable. To
quote the House Committee on Civil Service in its
report on H.R. 3393 : "In the postwar period, the
i:)roblems of government, the inevitable complexi-
ties of administration, and the importance of ef-
fective service to the people will justify unusual
emj^hasis upon high standards in selecting, pro-
moting and retaining personnel. This is particu-
larly true of the middle and higher brackets. But
with high qualification standards must be associ-
ated rates of compensation that are reasonably
attractive to persons who meet these standards."
The Foreign Service officer is, of course, faced
with expenses not imposed on home Civil Service
personnel, and he has not the same opportunities
for investment or savings as if he were perma-
nently domiciled in this country. Despite very
small increases under the recent Federal Pay Act,
which so far as "take home" pay is concerned will
be somewhat nullified by the cessation of overtime,
salaries and allowances are in our best judgment
insufficient. The general level remains about
where it was in 1924.
In the hearings on the State Department Ap-
propriation Bill of 1945, Secretary Hull made, I
think, an illuminating comment on the subject of
allowances. I quote :
"Allowances as distinguished from salary are
premised upon the various conditions which ob-
tain in the many duty stations and are essential to
meet the extraordinary cost of maintenance of
satisfactory standards of living and the perform-
ance of public business. They are necessary to the
maintenance, as well, of a mobile and flexible
service.
"It is important, particularly in these times,
that these allowances be maintained at alevel ade-
quate to meet the ascertained needs and that these
allowances be considered in the nature of equip-
ment essential to the performance of Government
work, rather than as personal perquisites of indi-
vidual personnel. Many of our personnel are to-
day experiencing inflation which cannot but
impede their activities unless allowances are made
to offset the increasing costs over which they have
no control. At the same time they are subjected,
as we all are, to tax legislation which is calculated
to curb inflation in the United States. These two
768
DEPARTMENT OF STATE BULLETIN
forces simultaneously in operation have definitely
placed the jDersonnel of the Foreign Service and
other agencies operating abroad on the horns of a
dilemma."
The way out of the dilemma has been, perforce,
for the Foreign Service officer to meet the ex-
traordinary expenses out of his own pocket.
Our projects will alleviate the situation by reim-
bursing the officer in part for the expenses peculiar
to his profession. We will ask for new allowances
for the exjjenses incurred when the exigencies of
the Service require an officer to maintain separate
households for himself and his family, and for the
exjjense of transporting his children to the United
States so that they may not be denied the advan-
tages of an American education. In addition to
these allowances, others which have been provided
by previous legislation especially in connection
with rent, cost of living, and official entertain-
ment will continue with adjustments to meet the
current situation.
The problem of adequate Foreign Service com-
pensation has been pointed up recently by the
problem of integrating the war-appointed special-
ists into the regular establishment. These men
are receiving salaries on the wartime scale in most
cases markedly superior to those of Foreign Serv-
ice officers of much longer experience doing com-
parable work. The men we want to retain will
hardly come in at the prevailing salaries for the
Foreign Service, and some are being employed at
higher salaries. We have had a flood of telegrams
from our chiefs of mission, pointing out the dis-
crepancy. Ambassador Caffery in Paris says that
he is sure that the Department will be aware of the
disappointment among our career officers of junior
and middle grades which might be caused by the
appointment of some of the men in the interim
services at the proposed salaries, in many cases
much in excess of their own. "I do not feel", he
continues, "that these salaries are excessive but
I trust that if this salary scale is established and
the cost of living and rental allowances are set
up commensurate with those received by our own
Foreign Service the Department will leave no stone
unturned to seek from Congress legislation which
will improve the pay status of our Foreign
Service."
We promise to leave no stone unturned. Our
feeling is that the country needs and absolutely
must have the best possible Service and must be
l^repared to pay for it. We expect to approach
Congress in that spirit taking with us a carefully
worked out pay scale, from ambassadors down to
probationers and the lowliest messenger, related
to comparable executive salaries in this country
and the costs of living abroad as representatives
of the United States.
We will require money for other needed im-
provements which I have not detailed to you but
which include administrative surveys of field
needs and conditions, more frequent inspections,
better pay and o^Dportunity for the clerical service,
more language training in the Service, and, no-
tably, housing for a renovated Service which will
not be inconsistent with our status as an inter-
national power.
After all the cost of a good Foreign Service
is only part of the cost of our machinery for the
conduct of foreign relations, which in turn is an
exceedingly small part of the costs of the Gov-
ernment and infinitesimally small com23ared with
the costs of war. One single day of war as it is
waged today costs our country $245,000,000. The
estimates for the Department of State and the
Foreign Service in the entire year of 1946 total
$77,900,000. Thus for the estimated expense of
a whole year of supporting this first line of
national defense of ours, we could wage war, as
it is waged today, for less than a day.
Obviously, all the reforms I have sketched for
you will come to nought unless our officers have j
the necessary intellectual stature and creative '
spirit. The best legislation, the best administra-
tion, and the best will in the world cannot take
the place of brains.
At worst the diplomatic mentality can be a
sterile thing given to airy dilettantism, or at
best it can be both creative and conservative.
The diplomat who has shared the lives of many
peoples and has learned many disciplines is in
a way a survival of humanist culture.
The wise diplomat can help give meaning and
direction to an engineers' and specialists' world.
If our new Foreign Service can unite sympathy,
idealism, and a world view with technical com-
petency and modern skill it should remain, as it
now is, as good as any in the world.
International Organizations and Conferences
Calendar of Meetings
Far Eastern Commission Tokyo
Anglo-American Committee of Inquiry London
The United Nations :
General Assembly London
Security Council London
Civil Aviation Conference Bermuda
Council of Foreign Ministers : Meeting of Deputies London
International Labor Organization :
Conference of Delegates on Constitutional Questions London
International Development Works Committee Montreal
International Technical Committee of Aerial Legal Paris
Experts (CITEJA) : 14th session
International Cotton Study Group : Subcommittee of the Washington
International Advisory Committee
North American Regional Broadcasting Engineering Con- Washington
ference
Council of the United Maritime Authority
West Indian Conference
London
St. Thomas, Virgin Islands
(U.S.)
January 6 (continuing in
session )
Hearings opened on Janu-
ary 25
January 10 (continuing in
session)
January 17 (continuing in
session )
January 15 (continuing in
session)
January 18 (continuing in
session)
January 21 (continuing in
session )
January 28 (continuing in
session)
January 22 (continuing in
session)
January 24 (recessed after
first meeting until Feb-
ruary 4)
February 4
February 4
February 21
Activities and Developments
International Technical Committee of Aerial
Legal Experts. The Department announced to
the press on January 21 that the Fourteenth Ses-
sion of the International Technical Committee of
Aerial Legal Experts ( CITE JA— Comite In-
ternational Technique d'Experts Juridiques
Aeriens), is scheduled to convene at Paris on Jan-
uary 22, 1916. The United States Group wliich
will participate in this meeting will consist of
Stephen Latchford, Adviser on Air Law, Aviation
Division, Department of State, chairman, United
States Section of CITEJA; Arnold W. Knauth,
Specialist in Maritime and Aviation Law, De-
partment of Justice, member, United States
Section of CITEJA; Emery T. Nunneley, Jr.,
Assistant General Counsel, Finance, Civil Aero-
nautics Board ; and Howard B. Kailey, Civil Air
Attache, American Embassy, Paris.
This session is the first since the outbreak of the
war. The agenda will include :
1. Opening of the Fourteenth Session. Desig-
nation of the President of CITEJA.
2. Eegulations of CITEJA.
The dates in the calendar are as of Jan. 27.
169
770
DEPARTMENT OF STATE BULLETIN
3. Consideration of the administrative and
financial management of CITEJA from 1939 to
1945 and of the budget estimate for 1945-46.
4. Coordination of the activities of CITEJA
with the Provisional International Civil Aviation
Organization (PICAO) at Montreal and relation-
ship between the two organizations.^
5. Collaboration of the CITEJA in the inter-
pretation and application of international conven-
tions on private air law.
6. Kevision of the Warsaw convention.
7. Draft conventions on aerial collisions, assist-
ance and salvage of aircraft on land, legal status
of the commander and navigating personnel.
8. Aviation insurance.
9. Designation of commissions (subcommit-
tees). Assignment and order of projects.
10. Date and place of the Fifteenth Session.
An important objective of the meeting is the
reorganization of CITEJA, which is covered by
items 2, 3, and 4. The Committee will reassign for
fuither study the draft conventions covered by
items 6, 7, and 8.
MEMBERS OF THE UNITED STATES SECTION ^
The Secretary of State announced on January
21 that the President has approved the designa-
tion of the following persons as members of the
United States Section of CITEJA and of the
Advisory Committee thereto:
United States Section
Chairman:
Stephen Latchford, Adviser on Air Law, Aviation Di-
vision, Department of State
MemVers:
Russell B. Adams, Director, Economic Bureau, Civil
Aeronautics Board
John C. Cooper, Member, Executive Committee, Inter-
national Air Transport Association
Arnold W. Knauth, Specialist in Maritime and Aviation
Law, Department of Justice
Arthur L. Lebel, Chief, Communications Section, Avia-
tion Division, Department of State
George C. Neal, General Counsel, Civil Aeronautics
Board
Advisory Committee to the United States Section
Chairiiian:
Arnold W. Knauth
' For an article on this subject see Bulletin of Feb. 28,
1945, p. 310.
"Released to the press Jan. 21.
Vice Chairman:
John C. Cooper
Memhers:
Gordon D. Brown, vice president. Bankers Trust Com-
pany of New York
John M. Dickerman, Washington representative, Air
Line Pilots Association
Howard S. LeRoy, professor of air law. National Uni-
versity Law School, Washington, D.C.
J. Brooks B. Parker, specialist in aviation insurance
Miss Eleanor H. Finch, Aviation Division, De-
partment of State, has been designated Secretary
of the United States Section.
The International Technical Committee of
Aerial Legal Experts was created as the result of
a resolution adopted at the First International
Conference on Private Air Law, which met in
Paris on October 27, 1925. It was organized for
the purpose of developing a comprehensive code
of private air law through the adojjtion of inter-
national conventions on various subjects of pri-
vate air law. The Department understands that
immediately jirior to the outbreak of the war 27
countries were official members of CITEJA and
contributing to its support. The United States
has been a contributor to CITEJA since the cal-
endar year 1930. The first session of the Com-
mittee was held in Paris in Maj' 1926, and the
Committee held semi-aimual sessions until the
outbreak of the war. The preliminary draft
conventions are prepared b}' four commissions,
which are in effect subcommittees, established by
the Committee.
North American Regional Broadcasting Engi-
neering Conference. The Department announced
on January 25 that there will be convened in Wash-
ington on Monda3', February 4, 1946, at 11 a. m. in
the Department of Commerce Auditorium, 14th
Street between Constitution Avenue and E Street,
NW, a North American Regional Broadcasting
Engineering Conference to consider problems re-
lated to standard-band broadcasting in the North
American region particularly as they are affected
by the North American Regional Broadcasting
Agreement which expires March 29, 1946. The
countries which are parties to the agreement are as
follows: Canada, Bahamas, Cuba, Dominican Re-
public, Haiti, Mexico, Newfoundland, and United
States. The British Government has indicated its
intention of sending obsei'vers in behalf of the
other British possessions in the North American
region, and it is possible that observers may be
FEBRUARY 3, J946
171
present from the Central American republics and
Panama.
Representatives of the United States broadcast
industry are invited to participate as observers
throughout the Conference. It is expected that
industry representatives will also be present from
other countries. In order to aid in the arrange-
ments for the meetings and the disposition of mat-
ters to be called up, interested persons are
requested to notify the assistant secretary of the
Conference, Miss Frances W. Simpson, Telecom-
munications Division, Department of State, 1818
H Street, NW, Washington, D.C., not later than
February 2, 1946. In this connection it is desir-
able tliat persons who plan to attend identify
themselves by office or position and, if attendance
is in a representative capacity, by the identity of
the persons or organization in whose behalf they
will attend.
The agenda of the Conference will consist of
proposals on behalf of each of the countries which
are parties to the NARBA agreement and various
subjects of a technical character designed to im-
lorove service in each country as well as to mini-
mize interference between countries.
Following the opening plenary session, meetings
will be held in the offices of the Federal Commu-
nications Commission, Pennsylvania Avenue and
12th Street NW, Washington, D.C.
The Delegation of the United States will con-
sist of the following : Commissioner Ewell K. Jett
of the Federal Communications Commission,
chairman; Harvey B. Otterman of the Depart-
ment of State, vice chainnan; George P. Adair,
Chief Engineer, and Rosel H. Hyde, General
Counsel, of the Federal Communications Commis-
sion; and Donald R. MacQuivey of the Telecom-
munications Division of the Department of State.
This Delegation will be assisted by members of the
staffs of the Federal Communications Commis-
sion and of the Department of State.
The secretary of the Conference will be K. Neil
MacNaughten of the Federal Communications
Commission, and the assistant secretary will be
Miss Frances W. Simpson of the Department of
State.
United Maritime Authority. A meeting will be
held in London beginning February 4, 1946 of the
full Council of the United Maritime Authority,
whose membership is made up of the following
maritime nations: United States, United King-
dom, France, Netherlands, Norway, Australia,
Belgium, Brazil, Canada, Chile, Denmark, Greece,
India, New Zealand, Poland, Sweden, Union of
South Africa, and Yugoslavia. The meeting is
being held for the purpose of discussing the ter-
mination of the United Maritime Authority, which
is due to be dissolved on March 2 under the terms
of its charter providing for its end six months after
the general suspension of hostilities. The meeting
will also consider what plans should be made in
view of the termination of the controlled shipping
pools of 17 million tons to take care of various na-
tional shipping programs and to insure as smooth
a transition as possible from a wartime basis to a
peacetime operation. The American Delegation is
made up of official members of the UMA Secre-
tariat from the War Shipping Administration.
John Mann of the Shipping Division is represent-
ing the Department of State as an observer. In
addition four representatives of the shipping in-
dustry selected by the National Federation of
Shipping will attend as advisers.
Civil-Aviation Agreements: Paraguay, Nicara-
gua, Turkey. In a press release of January 23
the Department announced that the Ambassador of
Paraguay deposited with the Department of State
on January 21, 1946 the Paraguayan instrument
of ratification of the Convention on International
Civil Aviation.
Other action taken recently on the Interim
Agreement on International Civil Aviation, the
Convention on International Civil Aviation, the
International Air Services Transit Agreement,
and the International Air Transport Agreement
concluded at the International Civil Aviation
Conference in Chicago on December 7, 1944 in-
cludes the following :
The deposit by the Ambassador of Nicaragua
with the Department of State on December 28,
1945 of the instiniment of ratification of the con-
vention by the Government of Nicaragua and the
acceptance of the interim, ti'ansit, and transport
agreements by that Government ;
The deposit by the Ambassador of Tui'key with
the Department of State on December 20, 1945
of the Turkish instrument of ratification of the
convention.
The Record of the Week
Advisory Group To Prepare Recommendations on Mass
Communications
Assistant Secretai-y of State William Benton
announced the appointment of five special con-
sultants who will gather and formulate advice
for the Department of State in developing United
States proposals in the field of mass communica-
tions for consideration by the United Nations
Educational, Scientific and Cultural Organization
(UNESCO).
The members of the advisory group are as
follows :
Edward W. Barrett, Editorial Director, News-
week/ formerly Director, Overseas Branch,
Office of War Information. Mr. Barrett will
serve as chairman.
Thurman L. Barnard, Vice President and Di-
rector, Compton Advertising Agency, New
York, N.Y. ; formerly. Executive Director,
Overseas Branch, Office of War Information.
Don Francisco, Vice President and Director, J.
Walter Thompson Advertising Agency, New
York, N. Y. ; formerly Assistant Coordinator,
Office of Inter-American Affairs.
Ferdinand Kuhn, Jr., Consultant, Office of In-
ternational Information and Cultural Af-
fairs, Department of State; formerly Chief,
London Bureau, New York Times, and later
Deputy Director, Office of War Information,
and Director, Interim International Infor-
mation Service.
John Hat Whitney, formerly Motion Picture
Chief, Office of Inter-American Affairs, later
Colonel in the U. S. Army Air Forces. Be-
fore the war he had extensive experience in
the commercial motion-iDicture industry as
chairman of the Board of Selznick Inter-
national Pictures.
lieleasod to the press Jan. 27.
172
Mr. Benton declared:
"UNESCO must seek to enlist the full coopera-
tion of the press, radio, and motion picture, if
it is to succeed in its purpose of getting the
peoples of the world behind the peace. That
peace will not be secure until its defenses are
built in the minds of men.
"I am calling on five men who have had long
experience with mass media in the private in-
dustry, and who have had special opportunity,
in their service with the Federal war agencies,
to acquire first-hand knowledge of the need for
Government recognition of the immense contri-
bution that the mass media of communication
can make to international understanding. These
five men have been cooperating with the Depart-
ment since my own appointment. In collabora-
tion with Archibald MacLeish, chairman of the
United States Delegation to the London confer-
ence on UNESCO last November, they will assist
the Department in outlining a practical program
through which radio, motion pictures, and pub-
lications may cooperate with UNESCO in
strengthening the foundations of world peace.
"It is hoped that the first meeting of the Gen-
eral Conference of UNESCO will be held this i
coming summer. Under the UNESCO Charter *
each country will appoint five delegates. The
assignment which I am giving to the Advisory
GrouiD is to prepare recommendations for the
use of the Unieed States Delegates at this first
Conference. It is my hope that this group during
the next few months will meet with repi-esenta-
tives of the various media of communications
and will exjilore with them the most constructive
activities for UNESCO in the field of motion
pictures, radio, and publications. It is mj' hope
that the report of the Advisory Group to the
State Department, for the guidance of the Dele-
gates, will be such that it can be made public."
FEBRUARY 3, 1946
173
Anglo- Soviet- American
Commnnique on the Disposal
of the German Navy
[Keleased to the press January 22]
One. It was decided at the Berlin Conference
that operable surface units of the German fleet in-
cluding units which could be made operable within
a specified time together with 30 U-boats should
be divided equally between the Three Powers and
that the remainder of the German fleet should be
destroyed.^
Two. The Tripartite Naval Commission was ac-
cordingly appointed to make recommendations to
implement this decision and it has recently re-
ported to the governments of the Three Powers.
Its report is laow under consideration by these gov-
ernments but its recommendation on allocation of
the main units has been accepted and their division
between the Three Powers is now being made.
Three. Surplus U-boats in United Kingdom
ports have been sunk in accordance with this
agreement.
Program for Supplying Raw
Materials to Germany and
Japan Clarified
[Released to the press January 21]
Many questions have been raised about the re-
ported plan to furnish supplies of cotton and
other raw materials to Germany and Japan for
the i^urpose of reactivating industries in these
countries. To dispel certain misunderstandings
which have arisen, the Department of State
wishes to clarify certain aspects of the program.
First, the program constitutes in no sense a
reversal or change in policies previously formu-
lated and announced by this Government. It
will be recalled, in particular, that the Secretary
of State, in a statement issued last December 12,-
envisaged three stages in the post-hostilities eco-
nomic development of Germany. At that time,
he anticipated that the second stage, marking a
gradual revival of German industrj% would begin
after the present winter.
Second, the program will be so designed as to
be consistent with one of the cardinal features of
this Government's economic foreign policy, which
is to insure that economic and industrial recov-
ery in countries freed from enemy domination
should have priority over revival in enemy coun-
tries. Thus the plan for the reactivation of the
cotton-textile industry which will be drawn up
by our military-government authorities in Ger-
many will take into consideration the fact that
it will be necessary to maximize coal exports for
the benefit of liberated areas until this spring at
least, and that the probable coal supply-demand
situation in Europe even after this winter will
continue to limit industrial revival. Both in Ger-
many and Japan raw materials, fuel, and trans-
port will be provided for industry only to the
extent compatible with the interests of both the
occup3'ing powers and the liberated areas.
Third, there is a world-wide shortage of textile
products, while there is a surplus of short-staple
raw cotton. It is impoi-tant that all spindles be
used to relieve the world textile shortage. Allo-
cations of raw cotton to Germany and Japan
would not cut into the supply available for liber-
ated areas. Moreover, of the textile products
made from such cotton only enough would be left
in Germany and Japan to satisfy minimum
domestic requirements. The balance would be
exported to pay for the raw cotton and other
imports which the occupying powers are now
financing. For these reasons, the cotton-textile
industry should be among the first industries in
enemy countries to be reactivated. No concrete
proposals to supply raw materials other than
cotton are at present being considered, although
they may be taken up as conditions warrant.
Fourth, the program must not be considered a
charitable undertaking to assist Germany and
Japan. We expect to get paid for the cotton.
Moreover, we have a distinct interest in putting
these countries on a self-sustaining basis. Neither
countrj' can exist even at a bare subsistence level
without imports. Neither counti-y can today pay
for its own imports because its gold and foreign
assets have been earmarked for reparation and
restitution, and its industries are virtually at a
standstill and therefore incapable of producing
sufficient exports to pay for essential impoi-ts.
■ Bulletin of Aug. 5, 1945, p. 157.
' Bulletin of Dec. 16, 1945, p. 964.
174
DEPARTMENT OF STATE BULLETIN
Tlie United States as well as other occupying
powers in Germany has had to finance the impor-
tation of food and certain other minimum relief
supplies necessary to prevent starvation and
disease and unrest of a character endangering the
occupying forces. We obviously do not want to
keep Germany and Japan on relief indefinitely
at our own cost. The only way to enable these
countries to pay for their own imports is to
finance initially the importation of raw materials
required to start up their export industries.
Finally, any program for the reactivation of
industry in Germany and Japan must, of course,
be within the framework of existing international
agreements and require the consent of other pow-
ei's concerned in the occupation or administration
of these countries. The United States has no in-
tention to iDroceed unilaterally.
Coordination of Foreign
Intelligence Activities
DIRECTIVE FROM THE PRESIDENT
[Released to the press by the White House January 22]
Text sent by the President to the Secretary of
/State, Secretary of War, and Secretary of the
Navy with regard to the coordination of the
foreign intelligence activities of the Federal
Ooverninent :
1. It is my desire, and I hereby direct, that all
Federal foreign intelligence activities be planned,
developed and coordinated so as to assure the
most effective accomplishment of the intelligence
mission related to the national security. I hereby
designate you, together with another person to be
named by me as my personal representative, as the
National Intelligence Authority to accomplish this
purpose.
2. Within the limits of available appropriations,
you shall each from time to time assign persons
and facilities from your respective Departments,
which persons shall collectively form a Central
Intelligence Grouj) and shall, under the direction
of a Director of Central Intelligence, assist the
National Intelligence Authority. The Director of
Central Intelligence shall be designated by me,
shall be "resjjonsible to the National Intelligence
Authority, and shall sit as a non-voting member
thereof.
3. Subject to the existing law, and to the direc-
tion and control of the National Intelligence
Authority, the Director of Central Intelligence
shall :
a. Accomplish the correlation and evaluation of
intelligence relating to the national security, and
the appropriate dissemination within the Govern-
ment of the resulting strategic and national policy
intelligence. In so doing, full use shall be made of
the staff and facilities of the intelligence agencies
of your Departments.
6. Plan for the coordination of such of the activ-
ities of the intelligence agencies of your Depart-
ments as relate to the national security and
recommend to the National Intelligence Authority
the establishment of such over-all policies and
objectives as will assure the most effective accom-
plishment of the national intelligence mission.
c. Perform, for the benefit of said intelligence
agencies, such services of common concern as the
National Intelligence Authority determines can
be more efficiently accomplislied centrally.
d. Perform such other functions and duties re-
lated to intelligence affecting the national security
as the President and the National Intelligence
Authority may from time to time direct.
4. No jDolice, law enforcement or internal se-
curity functions shall be exercised under this
directive.
5. Such intelligence received by the intelligence
agencies of your Departments as may be desig-
nated by the National Intelligence Authority shall
be freely available to the Director of Central In-
telligence for correlation, evaluation or dissemina-
tion. To the extent approved by the National |
Intelligence Authority, the operations of said '
intelligence agencies shall be open to inspection by
the Director of Central Intelligence in connection
with planning functions.
6. The existing intelligence agencies of your De-
partments shall continue to collect, evaluate, cor-
relate and disseminate departmental intelligence.
7. The Director of Central Intelligence shall be
advised by an Intelligence Advisory Board con-
sisting of the heads (or their representatives) of
the principal military and civilian intelligence
agencies of the Government having functions re-
lated to national security, as determined by the
National Intelligence Authority.
FEBRUARY 3, 1946
175
8. Within the scope of existing law and Presi-
dential directives, other departments and agencies
of the executive branch of the Federal Govern-
ment shall furnish such intelligence information
relating to the national security as is in their pos-
session, and as the Director of Central Intelligence
may from time to time request pursuant to regu-
lations of the National Intelligence Authority.
9. Nothing herein shall be construed to author-
ize the making of investigations inside the con-
tinental limits of the United States and its
l)()Ssessions, except as provided by law and Presi-
dential directives.
10. In the conduct of their activities the Na-
tional Intelligence Authority and the Director
of Central Intelligence shall be responsible for
fully protecting intelligence sources and methods.
U. S.-Greek Negotiation on
Expansion of Production and
Employment
EXCHANGE OF NOTES BETWEEN THE GOV-
ERNMENTS OF THE UNITED STATES AND
GREECE 1
[Released to the press January 25]
The Acting Secretary of State announced on
January 25 that, in a recent exchange of notes, the
Governments of the United States and Greece have
agreed on the negotiation of measures looking
toward promoting world expansion of production,
employment, and the exchange and consumption
of goods. The texts of these notes follow :
Royal Greek Embassy,
Washington, D.C.
January B, 19^6.
Excellency :
I have the honor to make the following state-
ment of the understanding reached during our re-
cent discussions:
1. With a view to promoting the expansion of
production, employment, and the exchange and
consumption of goods, the Government of the
United States of America and the Greek Govern-
ment hereby undertake that they will enter into
negotiations at an appropriate date for the reach-
ing of agreement between themselves and with
other countries of like mind on mutually advanta-
geous measures directed to the reduction of tariffs
and trade barriers, and the elimination of all
forms of discriminatory treatment in interna-
tional commerce, payments and investments.
2. Pending the conclusion of negotiations en-
visaged in the foregoing j^aragraph, the Govern-
ments of the United States of America and Greece
declare it to be their policy to avoid the adoption
of new measures affecting international trade, pay-
ments or investments which would prejudice the
objectives of such agreement. The two Govern-
ments shall afford each other an adequate oppor-
tunity for consultation regarding proposed meas-
ures falling within the scope of this paragraph.
Accept [etc.] Diamantopoulos
His Excellency
Mr. James F. Byrnes,
Secretary of State,
Washington, D. G.
Department of State,
Washington, D.C.
January 11, 191fi.
Excellency :
I have the honor to acknowledge the receipt of
your note of January 2, 1946 concerning the un-
derstanding reached during our recent discussions
in regard to promoting the expansion of produc-
' Asked at his press and radio uews conference on Janu-
ary 25 whether this meant that a reciprocal trade agree-
ment with Greece was in the offing, Mr. Acheson replied
in affirmative. He added that it particularly meant that
the Greek Government would join in the international
trade conference which we were looking forward to during
the coming summer. A correspondent asked if the ex-
change of notes represented a preventive and protective
American step in connection vvitli the new fiscal arrange-
ment negotiated between Great Britain and Greece to make
sure there would be no barriers to American trade as a
result of the tying of Greek economy to Britain. The
Acting Secretary said that he did not think that this Gov-
ernment thought it was necessary to do that. He said that
both the British Government and this Government were
advancing financial help to the Greeks and that he did
not think that there was ever any question tliat tliere was
going to be any exclusive arrangement made by either
Government. Asked if the reason these notes were an-
nounced now was because this Government had been sit-
ting in on the discussions with the Greek and British Gov-
ernment on financial matters and this was one of the re-
sults of those discussions, Mr. Acheson replied in the
negative. He said that this was one of the results of the
discussions between this Government and the Greek Gov-
ernment in connection with cmr own financial discussions
176
DEPARTMENT OF STATE BULLETIN
tion, employment and the exchange and consump-
tion of goods, and hereby confirm your statement
of the understanding reached as therein set out.
Accept [etc.]
Dean Acheson
Acting Secretary of State
His Excellency
CiMON P. DlAMANTOPOULOS,
Airibassador of Greece.
Reconsideration of Quotas
on Silver-Fox Furs
[Released to the press January 24]
Consideration is being given to the question of
whether the emergency conditions with respect to
the marketing of silver- or black-fox furs and skins
which resulted in the supplemental trade agree-
ments with Canada relating to these articles,
signed in 1939 and 1940, have ceased to exist or
have substantially changed.
Shortly after the outbreak of war in 1939 sev-
eral European markets whicli previously had ab-
sorbed large quantities of silver-fox furs were
practically closed, largely because of the need of
governments to conserve foreign exchange for es-
sential supplies. This resulted in much larger
quantities becoming inunediately available for the
remaining markets of the world, especially the
United States, and there was attendant demorali-
zation of marketing conditions. A supplemental
trade agreement was therefore negotiated in Can-
ada in December of that year providing that the
total number of silver-fox furs which might be
entered into the United States a year should not
exceed 100,000. To prevent evasion of the quota
the restrictions were applied also to live silver
foxes, parts of furs, and articles made of furs.
The rate of tariff duty on silver-fox furs was re-
duced from 371^ to 35 percent ad valorem during
the continuation of the quota.
A second supplementary agreement was signed
in December 1940 and remains in effect. This
agreement continued the basic quota of 100,000
silver foxes and furs and the 35-percent rate of
duty but provided for changes in detail. Sepa-
rate quotas were provided for parts of silver-fox
furs, piece plates made therefrom, and articles
wholly or in chief value of such furs.
The present quota of 100,000 is allocated during
the first five months of each quota year so that
Canada is granted 70 percent of the permissible
imports and all other countries the ronaining 30
percent. After the end of such five months unfilled
portions of the quota may be filled by imports
from any source.
The agi'eement provides that either government,
after consultation with the other, may terminate
it on 90 days' notice should such government de-
cide that the emergency conditions which gave
rise to the agreement have ceased to exist or have
become substantially modified. Moreover, the
share of the quota allotted to Canada may be
changed by mutual agreement; and the entire
quota arrangement may be terminated at any time
by agreement between tlie two governments. It is
provided that upon termination of the supple-
mental agreement the rate of duty on silver-fox
furs reverts to 37^/^ percent ad valorem, as fixed
in the trade agreement between the United States
and Canada signed November 17, 1938.
In view of the steps taken since V-E Day toward
a resumption of commercial activity in Europe,
the present is deemed an appropriate time to re-
examine the whole situation regarding silver-fox
furs, with a view to determining whether an emer
gency still exists.
Any person desiring to submit any informa-
tion or views with respect to the foregoing should
present them to the Committee for Reciprocity
Information in accordance with the following an-
nouncement issued by that Committee on Janu-
ary 24:
Eeconsideration of Quotas on Silver Fox Ftjrs
PUBLIC NOTICE
Closing date for submission of briefs — February
25, 1946
Closing date for application to be heard — Febru-
ary 25, 1946
Public hearings open — March 7, 1946
The Committee for Reciprocity Information
hereby gives notice that all information and
views in writing, and all applications for supple-
mental oral presentation of views in regard to the
question whether the emergency conditions with
respect to the marketing of silver or black fox furs
and skins which resulted in the supplemental trade
FEBRUARY 3, 1946
177
agreements with Canada relative to tliese articles,
signed on December 30, 1939, and December 13,
1940, have ceased to exist or have become substan-
tially modified, shall be submitted to the Commit-
tee for Reciprocity Information not later than
twelve o'clock noon, February 25, 19-46. Such com-
munications should be addressed to "Chairman,
Committee for Reciprocity Information, Tariff
Commission Building, Eighth and E Streets,
N.W., Washington 25, D.C."
A public hearing will be held beginning at 10 : GO
A.M. on March 7, 1946, before the Committee for
Reciprocity Information in the hearing room of
the Tariff Commission in the Tariff Commission
Building, where supplemental oral statements will
be heard.
Ten copies of written statements, either type-
written or printed, shall be submitted, of which one
copy shall be sworn to. Appearance at hearings
before the Committee may be made only by those
persons who have filed written statements and
who have within the time prescribed made written
application for a hearing, and statements made
at such hearings shall be under oath.
By direction of the Committee for Reciprocity
Information this 24th day of January, 1946.
Edward Yardley
Secretary
Washington, D.C,
January 2 4, 1946-
Appointment of Board of
Consultants on Atomic-Energy
Committee
[Released to the press January 25]
The Department of State announced on Janu-
ary 25 that a board of consultants had been ap-
pointed to assist with the work of the Secretary of
State's Committee on Atomic Energy, which was
set up on January 7 with Dean Acheson, Under
Secretary of State, as chairman.
The board of consultants consists of Mr. David
E. Lilienthal, chairman of the Tennessee Valley
Authority, Mr. Chester I. Barnard, president.
New Jersey Bell Telephone Company, Dr. J.
Robert Oppenheimer, California Institute of
Technology, Mr. Charles A. Thomas, vice presi-
dent, Monsanto Chemical Company, and Mr.
Harry A. Winne, vice president and manager of
engineering api^aratus department. General Elec-
tric Company. Mr. Lilienthal will act as chair-
man of the group.
In addition to Under Secretary Acheson, the
Seci-etary of State's Committee is composed of As-
sistant Secretary of War Jolin J. McCloy, Dr.
Vannevar Bush, Dr. James B. Conant, and Maj.
Gen. Leslie R. Groves. The Committee was ap-
pointed to study the subject of controls and safe-
guards necessary to protect this Government so
that, when the persons are selected to represent
the United States on the United Nations Commis-
sion on Atomic Energy, they will have the benefit
of the study. The proposal for such a Commis-
sion was adopted formallj^ on January 24 by the
General Assembly of the United Nations.
Appointment of U.S. Political
Representative to Austrian
Government
[Released to the press January 21]
John G. Erliardt has been appointed United
States Political Representative to the Austrian
Government. He will serve simultaneously as
Political Adviser to Gen. Mark Clark, United
States Member of the Allied Control Council in
Vienna, until sucli time as the agreement on con-
trol machinery in Austria is modified by a new
four-poAver agreement. Mr. Erhardt will have
the personal rank of Minister.
Approval of Designation of
Austrian Representative in U.S.
[Released to the press January 21]
The President has approved the designation by
the Austrian Government of Ludwig Klein-
waechter as Austrian representative in tlie United
States, with the personal rank of Envoy Ex-
traordinary and Minister Plenipotentiary. Dr.
Kleinwaechter will deal with all matters concern-
ing relations between the United States and
Austria which do not affect the supreme authority
of tlie Allied Council.
178
DEPARTMENT OF STATE BULLETIN
International Agreements
With Siam Continue in Force
STATEMENT BY ACTING SECRETARY
ACHESON
[Released to the press January 24]
In conversations with the Government of Siam,
following the formal resumption of diplomatic
relations between the United States and Siam, it
has been recognized that the treaties and other
international agreements in force between the
United States and Siam prior to the outbreak of
war in the Far East continue in full force and
effect. Bilateral treaties and agreements covered
by such conversations include the Treaty of
Friendship, Commerce, and Navigation of No-
vember 13, 1937, together with the final protocol
and accompanying exchanges of notes; the Extra-
dition Treaty of December 30, 1922; and the
agreement for the waiver of passport-visa fees
of September 19, 1925.
Special International Textile
Group Leaves for Japan
[Released to the press Januar.v 21]
On January 15 a special international textile
group organized by the State and War Depart-
ments left for Japan. It will report to the Su-
preme Commander, General MacArthur, and will
be charged with the duty of assisting him in de-
veloping factual information on the textile indus-
try in Japan.
United States members will be three representa-
tives of United States textile industry. Frank
Rowe, chief engineer. Riverside and Dan River
Mills, Virginia, and H. Wichenden Rose, vice
president for research and planning of American
Viscose, left with the mission on January 15.
Harry L. Bailey, president of the Wellington-
Sears Company, New York, will rej^lace Hugh
Comer, president of Avondale Mills, who has been
compelled to withdraw for unavoidable personal
reasons. Mr. Bailey will join the group in Japan.
The Governments of Great Britain, India, and
China have accepted invitations to nominate ob-
servers. They will be: for Great Britain, F. S.
Winterbottom, British member of Combined Tex-
tile Committee; for India, Bharat Ram; for
China, Yang Sih-Zung, member of Textile Regu-
lation Administration of Chinese Ministry of
Economic Affairs. Fred Taylor and Stanley
Nehmer of the Department of State will also be
attached to the group.
The report of the group will be made available
to the State and War Departments, to the gov-
ernments represented, and to the Combmed Tex-
tile Committee, which since the dissolution of the
Combined Production and Resources Board on
January 1, 1946 has be«n responsible for world
allocations of textiles.
WHEAT SHIPMENTS— (.'o;(/i;i»«7 from inuje 151.
Upon my return from the Potsdam Confer-
ence I stated :
"If we let Europe go cold and hungry, we may
lose some of the foundations of order on which
the hope for world-wide peace must rest. We
must help to the limits of our strength, and we
will."
I should like to emphasize the last sentence of
that statement and request that you give the
personal attention to this problem which the seri-
ousness of the situation demands.
Everything possible must be done to provide
the necessary handling, inland transportation,
port facilities, and ocean transportation required
to move all the wheat and flour which can be
provided. We must reduce to a minimum the
quantity of wheat used for non-food purposes.
Also, all other efforts must be made to increase
wheat for food and for this purpose the possi-
bility of increasing the extraction ratio in mill-
ing should be explored.
I have asked Mr. Snyder to coordinate all of
the movement activities in this country to make
certain that we attain maximum shipments of
wheat as well as coal to liberated countries. Mr.
Snyder has directed the establishment of a Move-
ment Coordinating Committee and it is my un-
derstanding that your Department is represented
on this Committee. I have also asked him to
keep me fully informed of the progress being
made and to report directly any major difficulties
which are not readily adjusted by his action.
FEBRUARY 3, 1946
179
Research Fellowship in
Agriculture
[Released to the press January 21]
The Department of State has been informed
by the Inter-American Institute of Agricultural
Sciences, Turrialba, Costa Kica, of the offer of a
fellowship in agricultural education and research
for a citizen of the United States. The fellowship
is open to male students holding the equivalent
of a bachelor's degree in agriculture and provides
tuition, room, board, and laboratory fees for one
year at the Institute. In order to express the
interest of the United States in the success
of this fellowship, the Department of State will
award a round-trip travel grant to the winning
candidate.
The United States has been invited to submit
a panel of three names to the Institute from
which final selection of the winning candidate
will be made. Each candidate must meet the fol-
lowing requirements :
1. Have high professional and intellectual
qualifications
2. Be in good physical condition
3. Have good grounding in basic courses such
as chemistry, physics, botany and zoology
4. Be a candidate for an advanced degree or a
person with advanced degree wishing to do spe-
cial research
5. Be a citizen of the United States
6. Have an adaptable personality
7. Have an adviser in the United States
During the present year only unmarried men
will be appointed. Other things being equal,
joreference will be given to persons having a
knowledge of Spanish or Portuguese, and to
veterans of World War II.
The successful candidate will be expected to
devote his entire time to the pursuits for which
the fellowship is awarded and to spend not less
than one year in residence at the Institute. He
will also be expected to present a thesis sum-
marizing the results of the thesis problem assigned
to him. After the satisfactory completion of his
work, the student will be awarded the degree of
master of science.
Application blanks and information leaflets
may be obtained from the American Kepublics
Branch, Division of International Educational
Relations, United States Office of Education,
Washington 25, D.C., and should be returned
before March 15, 1946. It is hoped that announce-
ment of the award can be made by April 15 in
order that studies at Turrialba may be undertaken
jjrior to June 20.
The Inter-American Institute of Agricultural
Sciences is an organization comprising, to date,
14 of the American republics, whose purpose is to
encourage and advance the development of the
agricultural sciences in the American republics
through research, teaching, and extension activi-
ties in the theory and practice of agriculture and
related arts and sciences.^ It is particularly inter-
ested in laying the foundation for a scientific
approach to the development of important agri-
cultural products. In a broader sense, it will
serve to promote friendship and better under-
standing by fostering constructive cooperation in
the agricultural field among the republics of the
American continent.
Resumption of Travel Grants
for Study in Other American
Republics
[Released to the press January 221
The Department of State announces the re-
sumption, on a limited basis, of the progi-am of
travel and maintenance grants to assist United
States graduate students to undertake academic
studies or research in the other American repub-
lics. The United States Office of Education and
the Department are cooperating in the adminis-
tration of this program.
These grants will be awarded to qualified candi-
dates to supplement personal funds or funds they
may expect to receive through fellowships or other
assistance from universities or research councils
or other qualified organizations in the United
States or the other American republics. They will
provide travel and maintenance in accordance
with predetermined cost estimates. Preference
will be given to the travel-gi-ant aspect of the
program.
Candidates must hold a bachelor's degree or its
equivalent and must be engaged in or recently have
completed graduate study. They must also have
' For an article on the Inter-American Institute of
Agricultural Sciences see BirLLBjriN of Oct. 8, 1944, p. 386.
180
DEPARTMENT OF STATE BULLETIN
a good working Joiowledge of the language of the
country in which study is to be undertaken. Proj-
ects will be considered with reference to their use-
fulness in the development of broader understand-
ing between the United States and the other
American re23ublics, and should be sponsored by
apiDroiDriate university or college authorities.
Other things being equal, preference will be given
to honorably discharged veterans of World War
II who meet tlie above qualifications.
Application blanks may be obtained from the
American Republics Section, Division of Inter-
national Educational Relations, United States
OiRce of Education, Federal Security Agency,
Washington 25, D.C., and should be i-eturned to
that office not later than March 15, 1946. It is
hoped that announcement of recipients of grants
can be made by May 1, 1946. Travel must begin
before June 30, 1946.
Successful candidates will be expected to remain
in residence for the purpose of study or research
for at least six months. Grants will be valid for
a minimum of six months and a maximum of one
year. Under exceptional circumstances grants
may be renewed, provided funds are available.
Transmittal of Protocol to
Inter-American Coffee
Agreement
[Released to the press by the White House January 22]
To the Senate of the United States:
With a view to receiving the advice and consent
of the Senate to ratification, I transmit hei-ewith
a protocol to extend for one year from October 1,
1945, with certain modifications, the Inter-Ameri-
can Coffee Agreement signed in Washington on
November 28, 1940. The protocol was open for
signature at the Pan American Union in Wash-
ington from Sei:>tember 1, 1945 until November 1,
1945 and during that period was signed for the
United States of America, "Subject to ratifica-
tion", and for the fourteen other American re-
publics which became parties to the Inter-Ameri-
can Coffee Agreement.
With the protocol of extension, I transmit for
the information of the Senate a report on the pro-
tocol made to me by the Acting Secretary of State.
I consider it important that the Senate give early
consideration to the protocol.
Harry S. Truman
The White House,
January 22, 1,946.
The Department
Appointment of Officers
Walter A. Radius as Adviser on Inland Transport in
the Office of Transport and Communications Policy,
effective December 3, 1945.
John NewboUl Hazard as Adviser on State Trading and
Government Monopolies in the Division of Commercial
Policy, effective December 12, 1945.
John D. Sumner and John P. Young as Advisers in the
Division of Investment and Economic Development,
effective January 14, 1946.
John Howe as Special Assistant to the Assistant Secre-
tary for Public and Cultural Relations, effective January
14, 1946.
William T. Stone as Director of the Office of Interna-
tional Information and Cultural Affairs, effective Janu-
ary 14, 1946.
Division of Investigations
123.6 DIVISION OF Investigations (CSA) : (Effective
1-17-46)
I Functions. CSA of the Office of Controls (CON)
shall be responsible for the following functions :
A To investigate Departmental and Foreign Service
applications for appointment to assure Departmental
security.
B To make such investigations in connection with
the granting of passports and visas as may be necessary.
C To assist other officials, Offices, Divisions of the
State Department upon request :
1 In meeting newly arrived ambassadors and min-
isters and rendering necessary assistance.
2 In meeting distinguished foreign visitors and
members of their ijarties upon their arrival in the
United States, facilitating their entry and their travels
within the United States.
3 By examining all files, archives, and other prop-
erty in embassies and consulate offices of former belliger-
ent nations ; by safeguarding such material and prop-
erty ; and by arranging for its custody until its final
disposition.
4 By rendering services for the Department in the
transfer of foreign consulates within the United States.
II Okganization. CSA shall be responsible to a Chief
Special Agent and shall have the necessai-y oi-ganization
which shall include field offices in strategic cities, each
office in charge of a Special .^gent.
PUBLISHED WfTH APPROVAL OF DIRECTOR OF BUREAU OF BUDGET
U. S. GOVERNMENT PRINTINS OFFICEi 1946
THE DEPARTMENT OF STATE
msiM
VOL. XIV, NO. 345 FEBRUARY 10, 1946
U.8.-U.K. Financial Agreement
THE PRESIDENT'S MESSAGE OF TRANSMITTAL TO CONGRESS
Address by UNDER SECRETARY ACHESON
The Wheat Crisis in Europe
By UNDER SECRETARY OF STATE ACHESON, UNDER SECRETARY OF
AGRICULTURE HUTSON, and JAMES A. STILL WELL
The General Assemhly of the United Nations
RESOLUTION ON ATOMIC COMMISSION
REPORT FROM LONDON
The Charter and the Promotion of Human Rights
Article by ALICE A. McDIARMID
• Sino-Soviet Treaty of Friendship and Alliance
For complete contents
see inside cover
'■*tes °^
THE DEPARTMENT OF STATE
BULLETIN
Vol. XIV 'No. 345* ^^^Sm ' Pubi-ication 2467
Febriiarr 10, 1946
For sale by the Superintendent of Documents
U. S. Government Printing Office
Washington 25, D. C.
Subscription:
52 issues, $3.50; single copy, 10 centi
Special offer: 13 weeks for $1.00
(renewable only on yearly basis)
Contents
The Deparlnirnt of Stale BULLETIN,
a ueekly publication compiled and
edited in the Division of Research and
Publication, Office of Public Affairs,
provides the public and interested
agencies of the Government with
information on developments in the
field of foreign relations and on the
uork of the Department of Slate and
ihc Foreign Service. The BULLETIN
includes prets releases on foreign
policy issued by the W hite House and
the Department, and statements and
addresses made by the President and
by the Secretary of State and other
(officers of the Department, as uell as
special articles on various phases of
international affairs and the functions
of the Department. Information con-
cerning treaties and international
agreements touhich the Vnited Stales
is or may become a party and treaties
of general international interest is
included.
Publications of the Department, cu-
mulative lists of uhich are published
at the end of each quarter, as uell as
legislative material in thefield of inter-
national Telations,aTe listed currently .
I
Page
*The President Transmits U. S.-U. K. Financial Agreement
to Congress 183
Tlie Credit to Britain, the Key to Expanded Trade.
By Under Secretary Acheson 185
*Agreement at Yalta on the Kuriles and Sakhalin 189
The Wheat Crisis in Europe. A Radio Broadcast 191
Civil Administration of Germany 197
General Assembly of the United Nations:
Resolution on Atomic Commission 198
Report From London to the Office of Public Affairs, De-
partment of State 199
*Sino-Soviet Treaty of Friendship and Alliance 201
Foreign Observers at Atomic-Bomb Demonstration .... 209
Political Murders in Poland 209
The Charter and the Promotion of Human Rights.
Article by Alice i\I. McDiarniid 210
Interaction of Migration Policies and \V<irltl Economy.
By George L. Warren 213
Protest by the Department of State on KV and UP Action.
Statement by Assistant Secretary Benton 217
Charge of U. S. Sale uf Arms to Spain Denied 218
Death of Irene B. Leach.
Statement by the Secretary of State 218
International Organizations and Conferences
Calendar of Meetings 219
Activities and Developments.
*Bretton Woods .Agreements 219
The Record of the Week
*British Commonwealth Occupation Force in .Jajjan.
Summary of Agreement Between II. S. and Australia . . . 220
U. S. Government Takes Serious View of Per6n's Charges . . 222
Lend-Lease Operations: President's Letter to Congress . . . 223
*Panama-U. S. Cooperative Fellowship Program 223
UNRRA Shipments for 1945 to Liberated Areas 224
Rubber Allocations for U. S. From the Far East 224
.Arthur C. Bunce To Leave for Korea . . , 224
Resignation of Isador[_Lubin 224
The Foreign Service:
Confirmations 224
Consular Offices 224
\ ' Treaty information.
y, ,,, , I OF DOCUMEHTS
MAR 19 194f
The President Transmits U. S -U. K.
Financial Agreement to Congress
To the (.'ongress of the United States:
The establislinieiit of a permanent state of
peace and prosperity is not a simple matter. The
creation and maintenance of conditions under
which nations can be prosperous and remain peace-
ful involves a series of highly complex and diffi-
cult problems. If we are to reach this greatly
desired goal, we must be prepared at all times to
face the issues that will constantly present them-
.selves and we must be determined to solve them.
If peace is to be permanent, we must never relax
our efforts to make it so.
In his message to the Congress recounnonding
the approval of the Bretton Woods Agreements,
President Roosevelt called these proposals "the
cornerstone for international economic coopera-
tion." By enacting the Bretton Woods Agree-
ments Act, the 79th Congress laid this cornerstone
for the construction of an orderly economic peace.
The Congress took many other steps during the
same session which enlarged the .structure, and its
achievements in this field are just cause for pride.
Among the most important of these other steps
were the ratification and implementation of the
treaty establishing the United Nations Organiza-
tion, the enactment of legislation to support the
I iiited Nations Food and Agricultural Organiza-
tion and to carry on the operations of the United
Nations Relief and Rehabilitation Administra-
tion, the extension in a broader form of the Reci}>-
rocal Trade Agreements Act, and the expansion
of the Export-Import Bank. These steps will
take us a long way on the road to world-wide se-
curity and prosperity. They should not make us
blind, however, to the job that has not been done —
to the work that lies ahead.
In ajjproving the establishment of the Interna-
tional Monetary Fund and the International Bank
for Reconstruction and Development, the Con-
gress specifically expressed its belief that
additional measures for international economic co-
operation would be necessary to render most effec-
tive the operations of the Fund and Bank. In the
Bretton Woods Agreements Act the Congress de-
clared it to be the palicy of the United States to
seek to bring about further international agree-
ment and cooperation along these lines.
The International Monetary Fund Agreement
was drafted and the Bretton Woods Agreements
Act was enacted during the war. Both recognized
that the financial condition of some countries re-
sulting from the war might make it impossible for
tiiem to apply at once the fundamental rule of
non-discrimination in their monetary and finan-
cial transactions. Therefore, provision was made
for a transition period which might postpone as
long as five years the complete application of this
fundamental rule.
Now in time of peace as we rapidly proceed Avith
the organization of the International Monetary
Fund we find that the fears which were respon-
sible for this period of grace are verified by the
facts. The most important of these facts is that
the United Kingdom as a result of the war must
continue for a long period many of its emergency
wartime financial controls unless it obtains addi-
tional working capital. It is apparent that, in the
case of a principal member of the International
Monetary Fund, we can ill afford to wait for the
period permitted by the Bretton Woods Agree-
ments for the removal of these hindrances to the
financial and commercial relationsliips between
nations. Now is the time to establish postwar
monetary and financial policies of the United
Nations. Now is the time to take action to enable
the United Kingdom to move with us toward the
prompt abolition of these restrictions.
For these reasons, the next order of interna-
tional business before the Congress should be our
financial relations with the United Kingdom.
The problems involved, which are severe but not
insoluble, are direct consequences of the war.
The text of this me.ssage was released to the press by
tlie Wliife House on Jan. 30.
183
184
. DEPARTMENT OF STATE BULLETIN
They are matters of great urgency and I believe
that the Financial Agreement which I am trans-
mitting herewith furnishes a real basis for their
solution.^ It is my earnest hope that the Con-
gress will implement the Financial Agreement as
speedily as is consistent with careful legislative
consideration.
It is not too much to say that the Agreement
now transmitted will set the course of American
and British economic relations for many years to
come. In so doing it will have a decisive influence
on the international trade of the whole world.
Those who represented the United States in these
discussions and those who represented the United
Kingdom were fully aware of the fundamental
nature of the problems befoi-e them. After long
and careful consideration they agreed upon the
arrangements which in my opinion will provide
a solid foundation for the successful conduct of
our economic relations with each other and with
the world.
The Financial Agreement will by its terms come
into operation only after the Congress has made
available the funds necessary to extend to the
United Kingdom the line of credit of $3,750,000,-
000 in accordance with the terms set forth in the
Agreement. Britain needs this credit and she
needs it now. It will assist her to meet the ex-
pected deficit in her balance of payments during
the next six years. It will enable her to buy from
the world the supplies of food and raw materials
which are essential to the life and work of the
British people. At the same time it will keep
open a market for those surpluses of the United
States which are customarily exported to the
United Kingdom. These are the important short-
term purposes of the credit.
But the Financial Agreement is much more than
a credit. Let me repeat, its most important pur-
pose from our point of view is to cause the removal
of emergency controls exercised by the United
Kingdom over its international transactions far
more speedily than is required by the Bretton
Woods Agreements. The Financial Agreement
will enable the United Kingdom, through the
prompt relaxation of exchange restrictions and
discriminations, to move side by side with the
United States toward the common goal of ex-
panded world trade which means expanded pro-
' For text of the agreement, see Bxjixetin of Dec. 9, 1945,
p. 907.
duction, consumption and employment and I'ising
standards of living everywhere.
The line of credit which will be extended to the
United Kingdom under the Agreement may be
drawn upon until the end of 1951. At that time
the United Kingdom will be obligated to begin
repayment of the principal with interest and those
payments will continue over a period of 50 years.
These terms are neither unusual nor difficult to
understand. Thei'e is one new concept, however,
embodied in the terms of the credit. We have
recognized that conditions may exist temporarily
during such a long period of time which would
make the payment of interest on such a large
amount difficult if not impossible. Accordingly,
provision has been made for the waiver of in-
terest by the United States Government after a
certification by the International Monetary Fund
as to the facts regarding the balance of payments
position of the United Kingdom. It is not to
our advantage to press for payment of interest
when payment is impossible and thus force default
and a crumbling of international economic
relations.
The financial assistance which the United King-
dom would receive under the Agreement has made
it possible for the two governments to agree on a
specific course of action which in a short period
of time will result in the removal of emergency
controls over foreign exchange and discriminatory
import restrictions and the reestablishment of
peacetime practices designed to promote the re-
covery of world trade. Britain has agreed to
abolish the so-called "sterling area dollar pool."
She has agreed to give up most of her rights dur-
ing the transition period provided for in the Inter-
national Monetary Fund Agreement and thus to
abandon controls over foreign exchange which
she would otherwise be permitted by the terms of
that Agreement to continue for a considerable
period of time. In addition to the direct benefits
which will flow from this stimulus' to Anglo-
American trade there will be the added benefits
derived from the ability of other nations to relax
their restrictions once the United Kingdom has
led the way.
Another troublesome financial problem which
has been fully and frankly discussed by the two
nations is that of the sterling liabilities of Great
Britain which have resulted from her large ex-
(Continued on page 216)
FEBRUARY 10, 1946
185
The Credit to Britain, the Key to Expanded Trade
By UNDER SECRETARY ACHESON
WE Americans who are accustomed to tackle
most problems with confidence and optimism
have a curious attitude toward our efforts in in-
ternational affairs. It is common, and rather
a mark of sophistication, to say that we have no
foreign policy. No matter how often the Presi-
dent and the Secretary of State make definite
statements defining our foreign policy, the re-
frain goes on that we have none. If officers of
the Government lay their views before the coun-
try they are accused of being propagandists. If
they say nothing they are accused of secrecy. If
we go into negotiations with other nations, the
cry goes up that we will be out-traded.
Yet within two months we have seen four out-
standing accomplislmients of American diplo-
macy— the Moscow Conference, the loan agreement
witli Great Britain, the creation of the Bretton
Woods Fund and Bank, and the first meeting
of the General Assembly of the United Nations.
Each of these carries forward mightily the main
stream of policy on which the American people
are agreed, to strengthen our own security and
prosperity by promoting the unity and strength
of the United Nations. I think these four achieve-
ments alone prove that we have a foreign policy
and that we are not altogether incompetent in
carrying it out.
I propose to speak today about the loan agree-
ment with Great Britain and its great importance
to us and to the world. To realize what tlie agree-
ment is about we must first understand two things,
the importance of Great Britain to world trade
and the situation that Great Britain finds her-
self in at the war's end.
Great Britain has been for many years the
world's best customer. She has bought every
year more of the world's goods of every kind than
any other single country. She has also been a
great exjiorter. A fifth of the world's foreign
commerce moved in and out of her ports before
the war. But she is even more important than
this because the countries which use her money- —
the pound sterling — in their international trans-
actions conduct almost a third of the world's total
foreign trade. By comparison, we and the Ca-
nadians between us carried on less than one fifth
of the world's foreign trade before the war. Brit-
ish currency, like our own, is known in every trad-
ing center in the world, and many other currencies
depend ui^on the British pound. The pound ster-
ling and the dollar : these are the two great curren-
cies in which international business is transacted.
In 1938 over one half of the world's foreign trade
was carried on in pounds or dollars. With the
war over and Germany and Japan pretty well out
of the picture the figure will be still higher, per-
haps as high as 70 percent. In other words, by
far the greater part of all the world's foreign com-
merce is paid for in pounds or dollars. If these
two currencies are freely interchangeable at a sta-
ble rate, businessmen all over the world can start
up their factories, employ workei's, produce goods
and buy and sell nearly everywhere — confident
tliat the purchase price will be paid in money
which they can use anywhere.
This ability to exchange British money for
American money has been disrupted by two wars.
After the last war we started to exchange our
money on the old basis — $4.86 to the pound ster-
ling— but we were forced to give that up in the
1930's. In this war Great Britain was in the fight-
ing for six years. The British poured everything
they had into the war and war jn-oduction. They
converted their industry almost completely, cut
their civilian standards to a bare minimum, and
The above address was delivered before the United
Natious' Association of Maryland, Baltimore. Md., and
broadcast over station WBAL on Feb. 1 ; it was released
to the press on the same date.
186
DEPARTMENT OF STATE BILLETIN
suffered destruction at home that we wei'e spared.
In i)artieuhir. they cut their exjjorts to tlie bone.
In 1945 they sold abroad less than one-third of
what they sold in 1988. It will take a lono- time to
rebuild that trade.
This is a very serious matter foi' the British
people. They cannot cut down nnidi on the goods
they buy abroad, for these goods make up a large
part of the food they eat and of the raw materials
tliut keejj their factories running. But the decline
in their sales to other countries means that they
earn from sales abroad with which to pay their
foreign bills not much more than a third of what
they did before the war.
This is not the whole story by any means. Be-
fore the war the British people owned large in-
vestments overseas — in the United States and
elsewhere — and the interest and dividends they
drew frf)m those investments lielped them to pay
for imports. A large jiart of those investments
they sold during the war — mostly before Lend-
Lease got going — to raise ca.sh to pay for guns and
tanks and airjjlanes. Other investments, such as
rubber plantations and the British merchant fleet,
were damaged in the Mar and will take years to
regain their old earning power. In the meantime
tlie bills for imported food and raw materials
keep coming in.
This is not the whole story even yet. During
the war the British Government bought war goods
from many countries on credit. The resulting
debts, payable in pounds sterling, ran to 14
billion dollars by the end of 194.5. These debts
ai-e owed to India, Egypt, Ireland, and other
countries inside and outside the British Empire.
We think many of these debts ought to be scaled
down as a contribution to the war. The British
think so too, antl in the financial agreement with
us they have stated what they hoj^e to do about
tliem. But scaling down requires the agreement
of the creditors ; and after it is accomplished there
will .still remain a large obligation to be worked
off over a period of years. That means that for
a long time Britain will have to ship goods in
payment, and for those shipments she will receive
no income with which to pay for her imports.
The situation sounds desperate, and it certainly
is serious and will be so until Britain is able to
build up her export trade to the point where her
income is enough to pay for her outgo. It is
serious, but manageable. Britain has great re-
sources of technical knowledge, plant, manufac-
turing '"know-how," financial integrity, and com-
mercial skill. With reasonable forbearance from
her creditors and woi-king capital to get over the
emergency she can surmount her troubles and be-
come again as she has been so long — one of the
very largest factors in the commerce of the world.
Once the pound sterling is made secure and freely
exchangeable at stable rates for dollars, the way
is open for a growth of trade that can advance
all countries to new heights of prosperity and
welfare.
This is what the financial agreement with Great
Britain is about. It is not a reward for an ally,
however gallant and enduring. It is not a pen-
sion, gift, or handout of any description what-
ever. It is an investment in the future : the kind
of future in which enterprise can operate under
the rule of equal opportunity to bring about pros-
perity, the kind of future in which the port of
Baltimore and every other seaport in the world
can see its peacetime trade revived and prosperous,
the kind of future in whicli farmers, merchants,
manufacturers — and the consumer, who is all of
us — can enjoy the increased markets and the in-
creased welfare which an expanded foreign trade
can bring about.
I think it is also an investment in security. If
the loan were not made what would the situa-
tion be? Britain would still need foreign goods,
and would have few dollars to pay for them. We
have never bought nearly as much from her as
she has from us. She would of course have sup-
plies of her own currency, pounds sterling, and
adequate supplies of the currencies of those coun-
tries which buy as much from her as she from
them. She would have to buy her needs, or as
nnich of them as she could afford, from the coun-
tries which bought equivalent amounts from her
or those which were willing to take payment in
pounds sterling.
We are not in either cla.ss. She would have to
channel business by government decree — business
that normally would come to us — to other coun-
tries. And those other countries would have to
channel their purchases to her, in order to be sure
of getting paid. We would see, in short — not be-
cause Britain wants it but because there would be
no other clear way out — a stiffening of restrictions
upon trade, exchange controls, import controls,
and imperial jneferences. all directed necessarily
against countries whose currencies were hard for
her to get, because they did not buy from her
FEBRUARY 10, 1946
187
directly. This would nieuii chiefly the United
States.
So there would necessarily be increased dis-
crimination against American traders in many
markets. The foreign trading community in this
country would press for retaliation. Sooner or
later we would retaliate in kind. Then we would
see a full-scale economic struggle, led by two
irreat jxovernments. with no holds barred.
AVhat nonsense that struggle would be. We
would be fighting our best cu.stomer, one of our
great allies, on whose continued cooperation with
us and the rest of the United Nations the founda-
tions of the peace depend. And we should be
struggling for continually shrinking markets,
instead of working together to expand all mar-
kets by increasing prosperity everywhere. This
woukl be a sure formula for defeating every pros-
pect of success of the United Nations Organiza-
tion and of improved conditions of life every-
where based on increased production and
employment.
Perhaps these are exaggerated fears. But I
assure you that my statement of the benefits of
the agreement is by no means exaggerated.
Now what does the agreement say?
First, we agree, if Congress approves, to ex-
tend to the United Kingdom a line of credit of
$3,750,000,000, which can be drawir on as needed
at anv time until December 31, 1951.
This is not the only emergency financial help
Cii-eat Britain will receive. She will receive loans
from certain other countries, and I hope sub-
stantial debt cancellations from some of her war-
time creditors. The total is enough, but not too
much, to enable lier to pay her necessary foreign
outgo until her export trade exj^ands to the point
where she can pay her current foreign bills from
current income. From Britain's point of view,
that is the major purpose of the credit.
From our point of view it has several other pur-
poses. In addition to the undertaking to repay
the loan with interest (ireat Britain promises:
F/r--<f: Not to restrict payments to Americans
for goods imported into England or for other
current transactions. That takes effect as soon as
the agreement is approved by Congress, and it
means that people in this country who engage in
business with their customers in Britain can get
paid in dollars with no strings attached.
Second: Within a year Great Britain agrees to
make arrangements for the free interchange of
pounds sterling and dollai's in countries whose
principal international currency is the British
pound. When this is done, people who receive
pounds for current transactions will be able to
use them anywhere in the world. This means that
a merchant in Calcutta, for instance, or in Cairo,
who sells aTjill of goods in London can exchange
the proceeds for dollars if he wants to. and spend
them in this country.
Third: Also within a year, to applj- the same
rule to transactions with all countries, so that a
Dutchman or a Frenchman or a Pole or anybody
el.se who sells goods in the English market can
exchange the proceeds for any currency he pleases
and spend them where he wants.
These provisions are a great step forward.
With the International Monetary Fund to back
them up and spread the rule to other currencies
after a somewhat longer transition period, they
bring within our sight the day when men in every
trading country can u^ their income and re-
sources to buy and sell in the best markets. But
this is not yet the whole story.
A moment ago I mentioned the British sterling
debts arising from the war. As they stood before
the loan agreement the.se debts were payable only
in pounds, so that the creditors in order to collect
their claims had to make purchases of foreign
goods in Britain or in those cotnitries which would
accept pounds. Under the loan agreement the
United Kingdom promises that whatever pay-
ments on these debts are made after one year will
be available for use for current transactions in any
currency area without disi'rimination. This
means that when Intlian or Egyptian, Irish or
South American creditors, or other holders of
these claims are jjaid, they can use the money to
buy anywhere they please.
These are the arrangements about money. The
United Kingdom also promises, effective at the
ejid of 1946, not to discriminate against this
country in the administration of its quotas upon
the quantity of imports.
This does not mean that thei'c will be no British
import quotas. I am sure there will be, for loan
or no loan, Britain cannot afford to let the British
people buy all the foreign goods they want. But
under the agreement we have Britain's promise
that within whatever quotas are established, sellers
in this country will have a fair chance to comptet
for the business.
188
DEPARTMEIST OF STATE BULLETIN
All of this put together is a great stej) forward.
The British thought we were pushing them hard.
Some of their newspaper editors and public men
still think so. They have thought the loan should
be an outright grant, they have criticized the re-
quirement that interest be paid, they have criti-
cized especially the requirements about import
and exchange control that I have just discussed.
But our British friends have realized that we are
taking a risk too, and that the terms are not unfair,
and the British Parliament has approved the fi-
nancial agreement. The hope for both of us is to
expand j^rosperity and trade around the world,
and, to do that, special deals that discriminate
against third countries must be eliminated.
One major virtue of this loan agreement is that
it cuts through the financial log jam which has
made it so difficult to get on with the job of remov-
ing other obstacles to trade between nations.
We are starting on that too. On the same day
that the financial agreement was signed there were
made public the American Proposals for Expan-
sion of World Trade and Employment.^ With
their immediate financial problem cared for by the
loan, the British Government was able at once to
endorse all of the important points in these pro-
posals. Under them we shall sit down this sum-
mer with 14 important countries to reduce all
kinds of barriers to trade under the Ti'ade Agree-
ments Act, and we hope shortly afterwards to meet
in general conference of the United Nations for
the same purpose.
In trade our interest, the British interest, the
interest of all countries is in expansion rather than
restriction, in greater production rather than
scarcity, in equal opportunity rather than discx'imi-
nation.
We have prcjposed the framework of an agree-
ment that advances these objectives, and we have
asked the people of this country and the govern-
ments and peoples of other countries to give it their
most serious considei'ation. One main advantage
of the loan agreement with Great Britain is that it
makes it financially possible for the world's largest
purchaser of foreign goods to join us in that proj-
ect. They are back of it as thoroughly as we are.
One thing should be made perfectly clear in con-
nection with these trade proposals. They do not
involve any present agreement about any American
tariff rates, and they do not increase in any respect
' For text of the proposals, see Buixktin of Dec. 9, 1945,
p. 912.
the President's authority to enter into such agree-
ments. That authority remains exactly what it was
before, and is stated in the Trade Agreements Act
as that Act was last renewed by Congress in June
1945.
Our negotiations this summer with 14 countries
will be conducted under the Trade Agreements Act.
They will be preceded by public notice and regular
hearings under that Act. Any concessions made
by the United States will be determined selectively,
with regard for the interests of American pro-
ducers, and only in return for adequate correspond-
ing concessions made by other countries. One of
the concessions we shall ask for will be directed
toward British imperial preference on commodi-
ties whiclt we export. Negotiations with these 14
countries will precede the International Confer-
ence on Trade and Employment, which will be held
later in the year.
I have spoken of the things the loan agreement
deals with. It does not deal with naval bases or
airfields, or the fifth freedom of the air, or the
future of Palestine or India.
Some peojjle have criticized the American nego-
tiators for this reason. They suggest that we
should have used the loan negotiations to extract
from the United Kingdom concessions on a variety
of subjects having no connection with the loan
itself. Naturally, each of these critics has his own
list of the additional concessions which should have
been obtained.
There are two reasons why this was not done:
it would not have been fair, and therefore it would
not have worked.
The bargaining power of a lender of money is
large, but not infinite. If it is pressed too hard
there comes a point when the prospective borrower
packs up his bag and goes home. That point is
likely to arrive when the lender starts inserting
clauses that have nothing to do with the subject-
matter of the main transaction.
The provisions of the loan agreement with
Gi'eat Britain have been called stiff, and the
length of the discussions trutlifully suggests that
they were not all easy to negotiate. But they all
had to do with the commercial and financial facts
which were the reason for the credit and with the
measures needed for the growth of trade which is
the ultimate main source for its repayment. The
terms were therefore all germane to the trans-
action. In the end this had to be admitted.
(^Continued on next page)
FEBRUARY 10, 1946
189
Agreement at Yalta on the Kuriles and Sakhalin
At his press and radio news conference on Janu-
ary 29, the Secretary of State said that he was ad-
vised that at Mr. Acheson's press conference he
expressed the understanding that tlie Yalta de-
cision as to the islands that were in question was
that the Russians should occupy them but that no
final award had been made. Explaining that he
had never seen the original agreement and that
lie had first learned of it after the surrender of
the Japanese, the Secretary disclosed that under
the agreement the southern half of SaMialin,
which at one time was Russian territory and
which was ceded to Japan about 1875, was, under
agreement between Mr. Roosevelt, Mr. Churchill,
and Mr. Stalin, to be returned to the Soviet Gov-
ernment after the surrender of Japan. He added
that the same agreement was made as to the Kurile
Islands and some islands adjacent to the southeim
half of Sakhalin.
Asked whether it would be necessary to have
a peace treaty to formalize that transfer, the Sec-
retary replied in the affirmative, adding that that
was his understanding of all those matters. Point-
ing out that someone might raise the question
tliat where territory had previously been in pos-
session of a government it would not be neces-
sary, the Secretary said that it was his under-
standing that any cession of territory must be
legalized in a treaty, either a treaty between two
countries, or, where a treaty has been forced
upon a country that has surrendered, the govern-
ment is required to sign. He said that he held
that view as to the territory adjacent to the Cur-
zon Line and Silesia. A correspondent pointed out
that in the case of the Curzon Line that had been
done within a recently announced treaty between
the Soviet Union and Poland. Replying, the Sec-
retary said that it could be done only with a treaty
between two governments, pointing out that that
had not been done in the case of Japan in answer
to this particular question. He asserted that what-
ever government exists in Japan should enter
into a treaty. Asked whether the agreement was
so phrased that it could be interjjreted as an award
of those areas to the Soviet Union, or merely that
Britain and the United States would support the
Soviet Union's claim to it in an eventual peace
treaty, the Secretary replied that it was his recol-
lection that the language in one of the agreements
was that it should be turned over, but he added
that there was not any question about what was
intended at Yalta because at Yalta he heard Mr.
XCHESOTS—Continued from page 188.
By sticking to the point the American nego-
tiators were able to negotiate a bargain which
promotes the fundamental interests of the United
States. Had they done otherwise, I fear that like
the dog in Aesop's fable they might have lost the
bone they had. "Dollar diplomacy" is not neces-
sarily an evil, but it does have its limits, and it is
well to remember what they are. One of them is
that between self-respecting people political con-
cessions are not to be bought for money.
This transaction should be judged for what it is.
It does not solve all the troubles of the world, or
even all the questions between us and the British
Commonwealth countries. It does solve the larg-
est and on the whole the most difficult inter-
national financial problem that confronts us, and
lets us go ahead to the solution of a host of other
questions. Four months after the war's end I
think that is a great accomplishment.
682258 — 46 2
I have talked a good deal tonight about trade
and money, and little about the political founda-
tions of the peace. The political foundations are
essential, but one thing we have learned since 1918
is that they are not enough. The organization
of the peace means its organization on all fronts.
We need not only the Security Council of the
United Nations, but the Economic and Social
Council also. We need not only the International
Court of Justice, but the International Monetary
Fund. We need not only the International Labor
Organization, but the Food and Agriculture Or-
ganization of the United Nations. We need not
only the United Nations Educational, Scientific
and Cultural Organization, but the International
Bank for Reconstruction and Development and
the International Civil Aviation Organization.
And I am convinced that when we search oui'
minds we shall decide that we need the Inter-
national Trade Organization also, and the Briti.sh
loan that makes it possible.
190
DEPARTMENT OF STATE BULLETIN
Roosevelt on at least one or two occasions take the
position that as to cession of territory, it was a
matter that had to be settled in the peace treaty.
He said that that was always Mr. Roosevelt's
view and that at Potsdam INIr. Truman took the
same position as to the Silesian area, making it
l^lain that it was an agreement, and that at the
proper time this Government would support it.
In reply to a query, the Secretary said that the
agreement was signed on the last day of the Con-
ference, a fact which he thought was the exj^laiia-
tion of his knowing nothing about it. Asked
wliether the agreement was formalized in writing,
Mr. Byrnes replied in the affirmative. He declared
that he had no criticism of anybody about his
not knowing of it, for there were very good rea-
sons at that time why it should be kept a top
secret. Calling attention to the fact that the
Soviet Government took the position that it would
take 90 days for them to move their troops from
Germany to participate in the war against Japan,
the Secretary pointed out that in February, as
the Soviets were starting their drive that cul-
minated in the collaj^se of Germany on the eastern
front, it was exceedingly important that a state-
ment of this kind should not have been made
because it would have been information to Japan
that the Soviet Union was going into the war.
Asked whether Stalin had agreed to enter the
Far Eastern war earlier in the Conference, the
Secretary said that that was his understanding.
Asked whether it was at Yalta that there was un-
derstanding that it would take 90 days to move
to the Far East, Mr. Byrnes said that it was stated
to the United States military people there. Asked
Mdiether, at the time that the agreement about the
islands was entered into, it was entered into with
full knowledge of the United States Chiefs of
Start' who were represented at Yalta, the Secre-
tai-y lejjlied in the affirmative.
Asked whether the Russians committed them-
selves to any concessions to the United States for
any territory it might want in Pacific islands, the
Secretary said that as far as he had any informa-
tion, they did not. Asked whether there were any
land groups or sea areas involved in the agreement
aside from Sakhalin and the Kuriles, the Secretary
replied in the negative but revealed that in addi-
tion to those two points, the agreement had refer-
ence to the Port Arthur - Dairen situation, which
was thereafter formalized in a treaty between
' Sec 1). liOl.
China and the Soviet Union.' Asked whether the
Sino-Soviet agreement followed precisely the
terms first projected at Yalta, Mr. Byrnes replied
in the affirmative, but he added that there might
have been some slight deviation. Asked whether
there was any discussion at the Conference of the
disposition of the other Pacific islands, the Secre-
tary explained that he was not at the Conference
and therefore could not tell the correspondents
what took place.
A correspondent inquired why there had to be
an agreement at all at that time. Mr. Byrnes said
he did not know why there would have to be an
agreement. The Secretary replied in the negative
when asked whether there was any reference at
Yalta to the possibility of a tru.steeship for those
areas. Asked whether there was any reason why
the Yalta agreement with reference to the Kurile
Islands should not be published, Mr. Byrnes said
that he saw no reason.
When the President was asked at his press and
radio news conference on January 31 when he had
learned of the Yalta agreement on the Kurile
Islands, he said that he did not know the exact
time but that it was some time last summer pre-
vious to the Potsdam Conference. He added that
it was necessary for him to be familiar with the
agreement before attending the Potsdam Con-
ference. Asked where he had found the agree-
ment, Mr. Truman said that it had never been
lost, that it had been tiled in the private files of the
President of the United States, that it was there
all the time. Questioned about the likelihood of
making the agreement public, the President ex-
plained that the State Department was inquiring
of Great Britain and the Soviet Union to deter-
mine whether they have any objections, adding
that if they do not it will be made public. Asked
whether the agreement was in the form of a treaty,
the President replied that it was just like the Yalta
and Potsdam Agreements. Asked whether any
more of these agreements would be brought up
later, the President said that he couldn't answer
that, but added that most of them had been made
public. He explained that this type of an agree-
ment constituted a wartime undei\standing be-
tween the Allies as to the best method of using
their combined forces to win the war. In reply
to a question, the President denied that the United
States was demanding air bases on the Kuriles.
FEBRUARY 10, 1946
191
The Wheat Crisis in Europe
A discussion and explanation of the importance which our Government attaches to the question of the wheat
shortage in Europe was broadcast on February 2, 1946 by Under Secretary of State Dean Acheson; Under
Secretary of Agriculture John R. Hutson: and James A. Stillwell, Adviser on Supplies for War Areas in the
Department of Slate. The text of their conversation on the air, released to the press on February 2, is presented
below. The broadcast was the eighth in a group of State Department programs in the NBC University of the
Air series entitled '^Our Foreign PoUcy"'. Sterling Fisher, director of the NBC University of the Air, tvas •
chairman of their discussion.
Fisher: The question of the wheat shortage in
Europe is of such vital importance that I am told
it was discussed at some length in Cabinet meet-
ings last week and again this week. This pro-
gram is one result of those discussions. Mr. Ache-
son, can you explain the extreme importance
which our Government attaches to this cjuestion *
Acheson : Mr. Fisher, the facts are simply
these: There will be suffering and starvation in
Europe this winter, despite all our efforts to pre-
vent it. We thought last fall that starvation
could be avoided, by allocating the sur])lus wheat
of the great exporting countries — the United
States, Canada, Argentina, and Australia — to the
countries that needed it most. Well, we've done
that, but we find our efforts so far haven't been
enough — for several reasons. The wheat crops
of Europe and North Africa were even shorter
than we had figured.. Shipping has been a se-
vere problem, too. And finally, we find that our
surplus stocks are not as great as we had thought.
We want the world to know the full extent of
our efforts to get the goods to Europe. At the
same time we want the people of the United States
to know we've got to do more than we have done
so far — even if it means a return to wartime con-
ditions in some sectors of our economy. We've
won the war. We can't afford to let hunger and
starvation defeat us now.
Fisher: That's laying it on the line. And I
understand, Mr. Acheson, that the Government is
taking drastic action to avert this danger, or at
least to minimize it.
Acheson : Yes, Pressident Truman this week
released a directive to all Government Depart-
ments ordering them to do everything possible to
speed the shipment of wheat and flour. He also
ordered them to do evervthing thev could to con-
serve our wheat resources. The President re-
peated a statement he made after the Potsdam
Conference, and I think it's worth quoting here:
"If we let Europe go cold and hungry, we may
lose some of the foundations of order on which the
hope for world-wide peace must rest. We must
help to the limits of our strength; and we will."
The President emphasized that last sentence:
"We nuist help to the limits of our strength; and
we will."' I believe the American people will
back him up on this.
Fisiikk: The public-opinion polls indicate they
will: most Americans would have l)een willing to
continue rationing, if necessary, to prevent star-
vation in Europe. Now, Mr. Hutson, I know that
as Under Secretary of Agriculture you have made
a special study of conditions in Europe. Just
what is the situation now 'I Has actual starvation
begun ?
Hutson : Not yet — at least not mass starvation.
That's what we're struggling to prevent.
Fisher : How much food are they getting over
there now?
Hltson: Well, we have .set as a goal for the
liberated countries — our Allies — a minimum ra-
tion of :2,000 calories a day per person. That's
the standard set by UNRRA for subsistence.
Fisher: How does that compare, Mr. Hutson,
with our diet over here?
Hutson : I think the average American eats
something over 3,000 calories of food a clay. That's
at least 50 percent more than we have set as the
minimum standard for subsistence in Europe. But
the important thing is, many of the liberated coun-
tries have had a struggle even to get rations up to
2,000 calories, and now they'i'e falling behind in
the figiit.
192
DEPARTMENT OF STATE BULLETIN
AcHESON : We have just received some estimates
of the prospects for the next few months. Over
125 million people in Europe will have to subsist
on less than 2,000 calories a day. And about 28
million — mostly city dwellers — will get less than
1,500 calories a day — less than half as much as we
get here in America. In some jiarts of Europe, the
figure will go down to 1,000 calories or less.
Fisher: Do these figures include Germany, Mr.
Acheson ?
Acheson: Yes. Of course, a lower standard has
been set in Germany than in the liberated countries.
In Germany the so-called "normal consumer" is
supposed to eat 1,550 calories per person daily.
This is considered the bare minimum for prevent-
ing disease and unrest that might endanger the
occupying forces. But actually, there is trouble
meeting that quota also. According to some re-
ports the Germans in our zone are getting only an
average of 1,300 to 1,350 calories a day.
Fisher : The lower ration in Germany is in line
with the policy of making sure Germany doesn't
fare better than the liberated areas, isn't it, Mr.
Acheson ?
Acheson : Yes, under the Potsdam agreement we
must give priority to the needs of people in the
liberated areas. That's only fair.
Fisher : There has been a lot of interest in the
question of feeding the Germans. In digging into
this subject, we found that several hundred people
have written the White House and the State De-
partment, pro or con. Here's a connnon question :
Are we going to let the Germans starve in spite
of the humanitarian principles we profess?
Acheson : The answer to that is n-o. It's not
our policy to let our ex-enemies starve. We don't
think that's a sound thing to do, from our own
point of view. Our first responsibility is to pre-
vent mass starvation among our former Allies.
But Me can't afford to permit famine conditions
in Germany either.
Fisher: Now, Mr. Acheson, we've been talk-
ing about calories, which is all very well — but a
calorie is a little hard to put your finger on.
Can't we pin this thing down in terms of tons, or
pounds of wheat, or better yet, loaves of bread ?
Acheson : The countries that are short of
wheat — which include nearly all of Europe — need,
between now and July 1, 17 million tons of wheat
inore than they have on hand. At most, 12 mil-
lion tons can be shipped to Europe from the
United States, Canada, Australia, and Argentina.
Six million tons of this must come from the United
States. That was the best we figured we could
do ; the rest must come from the other three coun-
tries. So, if we all do everything we can, Europe
will still be 5 million tons short; and that's a lot
of wheat, especially when you haven't got it.
Fisher: Mr. Hutson, can you translate that
figure for us? What would 5 million tons of
wheat mean to the people of Europe ?
Hutson: Well, 5 million tons of wheat will
make around 11 billion loaves of bread. The pres-
ent bread ration for each person in France and
Italy is only about half of an ordinary loaf of
bread a day. And remember this: They have to
eat a lot more bread than we do, because about
two thirds of their total diet is bread. But to
answer your question specifically, Mr. Fisher, 5
million tons of wheat would feed a hundred mil-
lion Europeans on their present rations for about
6 months.
Acheson : In other words, for every million
tons of wheat now allocated wliich does not reach
Europe, 20 million people would have to go with-
out bi'ead for 6 months — which would mean
starvation, since bread is the main article in their
diet. Or, if the wheat they have is spread more
thinly, it would mean near-starvation for a much
greater number.
Hutson: And I'd like to jioint out, Mr. Fisher,
that the four supplying countries must exei't every
effort to meet even their present quota. In this
country, for example, we can supply fi million
tons only by almost superhuman efforts.
Acheson: That is why the President is asking
us to make superhuman efforts. The situation is
so bad in some countries that there is only enough
wheat and flour for a two-week supply of bread
Millions of Europeans will go hungry and may
even starve before the next crop is in. Tliat's why
it's so urgent right now that Americans under-
stand the situation.
Fisher: I'd like to ask Mr. Hutson how it hap-
pens that Europe is so short of wheat. I know
the Nazis drained off what they could, but there
has been a new crop since then.
Hutson : There are two reasons. In the first
l)lace, most of the European countries have ex-
perienced the worst drought in 50 years. This
drought also hit North Africa, which normally
exports wheat to France. In fact, the crop was
FEBRUARY 10, 1946
193
so bad in Frencli North Afi-ica that officials there
claim they must import 2 million tons of wheat —
that's about 75 million bushels — during the next
12 months.
FisiiKu: That must have been quite a blow to
France, then.
Hutson: Yes, France is now without grain im-
ports from North Africa. On top of that, the
Frencli crop itself is only 50 percent of normal.
The same is true in Italy, Yugoslavia — all
through southern Europe. To make things
worse, the previous year's croi> was also short-
not only in Europe, where the war was still on,
but in Australia and Argentina as well. Aus-
tralia had one of the worst droughts in her his-
tory a year ago. This year her crop is much bet-
ter. But the net result of these crop failures
abroad has been that North America is the only
part of the world with a sizeable carry-over from
last year.
Fisher: It's lucky for everyone that we had
good weather and bumper crops. But you men-
tioned a second reason for the world shortage,
Mr. Hutson.
HuTSON : That has to do with the war. You
have to remember that the war was still on in a
great part of Europe when last year's crop was
planted.
/ Fisher: So a lot of wheat acreage didn't get
planted?
Hutson: Wheat acreage held up pretty well.
But even where the drought didn't strike, the
yield was low because of the war conditions — lack
of fertilizer for several years, lack of machinery
and manpower. It's a pretty dismal situation
everywhere in Europe.
AciiESON : We must realize that this is not an
ordinary shortage situation. In normal times, a
world shortage of wheat wouldn't have been so
serious. But today other foods are short, too —
there is no way to make up the deficit. Further-
more, most of the jjeople of Europe have been on
a pitifully low ration for a long time and they
cannot stand extreme shortages nearly as well as
people who have been well fed.
Fisher: On this matter of extreme shortages —
there have been some conflicting reports, Mr.
Acheson, on the degree of hunger in Europe.
Some writers have reported that conditions
weren't as bad as they have be«n painted.
Acheson : Most of these observations were made
last fall, when the picture was a little brighter.
The 1945 crop was harvested, such as it was, and
there was enough to eat for the time. Since then
the situation has grown steadily worse. Country
after country has found it had overestimated its
supply of grain, and has used up its supply to meet
rationing requirements.
Hutson : That's right, Mr. Acheson. The short-
age in Europe is so great that suffering and starva-
tion will undoubtedly result. And unless we can
greatly increase our shipments of wheat, we may
have to choose between trying to limit the starva-
tion to Germany, thereby running the danger of
imperiling our whole occupation program; or —
this is the alternative — spreading the supply thinly
everywhere, with the result that there will be star-
vation on a somewhat .smaller scale throughout
Europe — even in the countries of our Allies.
Fisher: That's a very grim prospect, Mr. Hut-
son. Do you think, Mr. Acheson, that some star-
vation is inevitable?
Acheson: As things stand now, nothing short
of a miracle can prevent it. But there's this
hope — ^miracles are by no means rare in America.
The way we won the battle of production and the
battle of supi:)ly during the war was little short
of miraculous. Once the American people realize
the danger that faces the people of Europe, I be-
lieve they are cajsable of producing another "mir-
acle"— not all by themselves, of course, but with
the help of the other supplying countries. We're
already working on our end of the problem — trying
to achieve a "miracle" in transportation, first of all.
Fisher: That recalls a question that several
people have asked in letters to this program and, I
believe, in letters to the State Department as well.
They usually put it this way : Since we did such
an immense job supplying the greatest expedition-
ary force the world has ever seen, why should we
Jiave trouble getting enough supplies to Europe to
prevent suffering and starvation ?
Acheson : To answer that question fully, we'll
have to go into the problem from two angles:
Supply and transportation. I think Mr. Hutson
might say a word about the supply problem first.
Fisher : Eight. You implied a while ago, Mr.
Hutson, that we may not be able to supply even
6 million tons of wheat from the United States.
I thought we had a big surplus in this country.
Hutson : We do have good supplies in relation
to our own normal needs. But remember that in
pre-war years we exported less than a million tons
of wheat a year. For the last 3 years, thanks to
194
DEPARTMENT OF STATE BVLLETIIS
the eft'oi'ts of (lur fanners, we have had ])iu>iper
crops of wheat and were able to fill huge military
needs. But even with military needs reduced,
there won't be enougli to meet all demands this
year.
Fisher : But why '
HuTSoN : Because of the tremendous shortage of
wheat that has developed in Europe since the last
crop, the demands on this countiy greatly exceed
any previous demands. Last fall it appeared that
at the end of 1945 we would have wheat stocks
estimated at about 25 million tons, or about 750
million bushels, of whicli we thought we could ex-
port about 225 million bushels. But by January
first we found that our stocks of wheat were 61
million bushels lower than we had anticipated.
Fisher: But, Mr. Hutson, what happened to
that 61 million bushels? Was the estimate too
high ?
HuTSON : No, our estimate of production was
accurate enough ; but we exported much more last
fall than we had anticipated. Then too — and this
is important — more wheat has been used for feed-
ing livestock than we had figured. We had a
lai'ge corn crop, but its nutritional value was low
this year, so some farmers have been feeding
wheat to their stock to supplement corn. At the
rate wheat has been used for feeding, this country
will not be able to meet its export quota for the
first 6 months of this year, unless drastic steps
are taken to conserve our stocks.
Fisher: What sort of "drastic steps" do you
advocate, Mr. Hutson?
Htjtson: Under the President's directive, the
Department of Agriculture will do everything
possible to conserve grains used to feed livestock.
Farmers are being asked to market their hogs and
cattle at lighter weights, to cull poultry fiocks.
and to raise fewer additional chickens and tur-
keys, in line with production goals. All of this
will help to save grain. That will help to prevent
further dwindling of our wheat supply.
AcHESON : And I would like to add, Mr. Fisher,
that we have come out of this war the most favored
nation on earth, and no matter how drastic the
steps we are forced to take, we must iu)t let less
favored peoples starve. We cannot go on feeding
wheat to our hogs and cattle while people die of
hunger. No American would want to do that.
Fisher: Now, on your second point, Mr. Ache-
' See Mr. StUlvvell's article on "Wheat and Coal for
Xiiberated Areas" in Bulletin of Feb. 3, 1946, p. 152.
son — what is being done to break through the
jam in transportation?
AcHESON : To deal with the whole question of
transport, an interagency Committee on Export
Transportation has been set up under the chair-
manship of Capt. Granville Conway, Acting Ad-
ministrator of the War Shipping Administration.
The State Department's representative on this
Conunittee is James A. Stillwell, our adviser on
sup])lies for war areas. I have asked him to join
the discu.ssion at this point, to explain what the
Committee is doing.
FisiiEK : Fine. It's about time we heard from
you, Mr. Stillwell.
Stillwell: Going back to your earlier ques-
tion, Mr. Fisher, as to why we are having trouble
getting supplies across in view of our successful
record during the war, I must point out that we're
now shii)ping twice as much out of Atlantic ports
as we did during the peak of war activity.^ In
November 1944, when our European offensive was
at its height, about 600 ships left our Atlantic
ports. A year later, in November 1945, that figure
had doubled — 1,200 ships sailed from those same
ports. Right now our most urgent problem is to
move the wheat we have on hand. We have
enough ships. The real bottlenecks are inland
transportation, to get wheat from the farm areas
to the seaports, and facilities to load the ships.
Fisher: What about the harbors of Europe,
where so many ports were devastated in the war?
Stillwell: Europe now has enough port facili-
ties to liandle the required tonnage. It is our own
seaports that are overtaxed. We're now facing
much greater transportation and port-handling
problems than we ever faced during the war.
Fisher : What is your Export Shipping Com-
mittee doing, Mr. Stillwell, to improve this situa-
tion ?
Stillwell: We're working on an hour-to-hour
basis, Mr. Fisher, to move every possible ton of
wheat. When a bottleneck appears, we get on the
phone to the proper authorities and try to get im-
mediate action. And we usually do. We're op-
erating as a war agency, with red tape reduced to
a minimum.
Fisher : Suppose we follow a shipment of wheat
from farm to ship and see what kinds of prob-
lems arise. The first leg of the journey would be
to haul the wheat to the grain elevators.
FEBRUARY 10, 1946
195
Stillwkll : That's the farmer's job. and he's
doing it pretty well, as Mr. Hutson can tell you.
HuTSON : Yes. Mr. Fisher; there has been some
talk about hoardinjj;- of wheat on the farms, but
that's utterly unjustified. In the north-central
and northwestern States, where most of the wheat
is, the elevators are bulging with grain. The
jtroblem is to get it out of the elevators and into
boxcars headed for the sea. Only when the ele-
vators begin to empty will we need to woi'ry about
the farmers.
Stili.well: The main bottleneck in wheat is
inland transportation — in box cars. The Ship-
ping Conunittee is working every day to make
more boxcars available for grain shipments.
Fisher: Can you give us an example of that,
Mr. Stillwell?
Stillwell: Well, a few days ago we got a wire
from Portland, Greg., the main port for shipping
Pacific Northwest wheat to Europe, saying that
shipments were lagging because they had been
getting an average of only IGl cars of grain a
day from inland points. We investigated and
found they needed 300 cars a day. There weren't
enough cars to be had out there, so the Office of
Defense Transportation took immediate steps to
order each railroad operating in the area to send
a quota of boxcars out to the Pacific Northwest.
That particular bottleneck will soon be cleared
up. But it is going to be aljsolutely essential in
the next few montlis that the railroads furnish
enough cars to keep the wheat moving in a steady
stream from the elevators to the ports.
Fisiier: But what about port facilities? What
are you doing to increase ship loadings?
Stillm'ell : That's also a tough problem, Mr.
Fisher. And to make it tougher, Canada is ex-
porting about 2 million tons of wheat this winter
season, and lier main seaports on the St. Lawrence
River are frozen over until early spring. As a
result, much of Canada's grain has to be shipped
through American ports.
Fisher: But, Mr. Stillwell, how can that extra
load be handled ^
Stillwell: Every available jjort is being used,
including some tliat do not ordinarily handle)
grain in the winter months. In January, 19
Liberty shijis were loaded with wheat in Albany,
N. Y. An icebreaker had to be sent up the Hudson
River to clear the way for them. It was the first
time wheat had ever been shipped from Albany
during the winter period of heavy ice; but we
liave to u.se port facilities wherever we can find
tiiem. We're exporting more wheat per month
now than we exported per year before the war.
But we must export still more, if we hope to pre-
vent starvation.
Fisher: How mucli wheat did we export last
month?
Stillwell : Over a million tons. But to get the
wJiole picture, you have to realize that we are also
exporting coal to Europe at the rate of at least
1,400,000 tons a month, whereas in normal times
we ship practically no coal to Europe. That adds
to the congestion in our transportation systems and
our ports and makes the problem of loading wheat
more difficult.
AcHEsoN : Remember. Mr. Fisher, tliat wheat
and coal are the two most important conunodities in
the world today. Life in Europe or anywhere else
can't go on without tliem. Wlieat means food, and
coal means heat and power: Heat for the family,
heat which makes the diiference between the young
and the old, dying and living; power for the fac-
tory, power for the railroad, power for public utili-
ties. Without wheat and without coal, a nation
is subject to physical and economic anemia, and the
barometer of political discontent and agitation is
bound to rise.
Stillwell : Yes, Mr. Acheson, we must keep both
wheat and coal moving. Fortunately, coal is less
of an inland-transport problem than wheat; but
it does jam up our port facilities.
Fisher: What is your Committee doing, Mr.
Stillwell, to speed coal liandling, to make way for
wheat ?
Stillwell : Well, coal is being shipped out of
virtually every Atlantic port from New York to
Port Arthur, Tex. Some coal is even being sent
from Utah to Europe by way of Long Beach, Calif.
This is the first time in history that coal has been
shipped to Europe by that i-oute.
Fisher : I suppose you have bottlenecks in coal
as well as wheat.
Stillwell : Yes, last month we found that coal
shipments from Baltimore and Philadelphia were
lagging. We investigated and found that coke
was being loaded, while coal shi^Ds lay empty in
the harbors. Now, it takes about a week to load a
ship with coke but only a day or so to load a ship
with coal. The answer was obvious : We got the
Office of Defense Transportation to place an em-
bargo on the loading of coke until the coal ships
were loaded, and that bottleneck was cleared up.
196
DEPARTMENT OF STATE BULLETIN
Eemember sucli port congestion also slows down
the export of wheat.
Fisher: Well, all this adds up to an amazing
story. Mr. Acheson, are other countries doing as
much as we are to get wheat to Europe? What
about the Soviet Union, for example, and eastern
Europe? They were gi'eat grain-producing coun-
tries before the war.
Acheson : That's right. In normal times east-
ern Europe and the Balkans supplied a large part
of Europe's wheat. But this year, because of the
war, these areas have no surplus. In fact, Poland
has asked for 600,000 tons to supply her own needs
this winter. As for the Soviet Union, her great
grain-producing areas are the Ukraine and Byelo-
russian Republics. And they suffered devastation
worse than any part of eastern Euroj^e — they bore
the brunt of the war twice, going and coming.
Their collective farms and their machinery were
wrecked, looted, and destroyed. Now the Soviet
Union is actually short of grain. But she will
probalil.v be able to get by better than some of the
smaller Eiu'opean countries.
Stillwell : Of course President Truman is ask-
ing each of the exporting countries to accept its
proportionate share of the responsibility for meet-
ing the world shortage. We're doing everything
Me can to make that possible.
Fisher : In what way, Mr. Stillwell ?
Still-htill: We're making ships available to
carry both Canadian and Argentine wheat to the
devastated areas. We are doing everything pos-
sible to make boxcars available at the proper
places to keep wlieat moving in a steady stream.
But, Mr. Fisher, we must make certain that more
grain is made available for export or our geared-up
transportation will soon have nothing to move.
Fisher : It amounts, then, to a global war against
hunger. Now, we come to a key question, which
I'm going to direct to Mr. Hutson. We've heard
the story of the crisis in supplying Europe. It's
not a pretty story. But what can the average
American citizen — Bill Johnson, out on a farm in
Nebraska, or a small town in Indiana, or right
here in Washington, D.C. — do to help?
HuTSON : Mr. Fisher, there's a place for every-
one in this race against starvation. The farmer
has done the first part of his job — he's produced
the biggest crop of veheat we have ever had in this
country. All we can ask him to do now is to con-
serve his wheat for human use so far as possible
and to keep the grain elevators full, as he has done
so far.
Fisher : But how about the city dweller ? As
Under Secretary of Agriculture, what would you
advise him to do ?
Hutson: Americans everywhere can do two
things. First, they must remember the serious-
ness of the world wheat shortage when they are
inconvenienced temporarily by the diverting of
boxcars for hauling wheat. This means people in
business and consumers alike, for the top priority
now being given to European supplies means that
shijjment of consumer goods to market will be
delayed.
Fisher: All Bill Johnson needs to do, then, Mr.
Hutson, is to cultivate a little patience and under-
standing?
HtJTSON : There's one thing more. Bill John-
son, and every citizen of the United States, can
make a real contribution to relieve the wheat
shortage simply by avoiding waste. A great
amount of bread is wasted in this country every
day. Now, you can't send half a loaf of bread
to Europe; but in the long run you can accom-
plish the same thing by saving the equivalent of
half a loaf of bread from the garbage can. Save
it; toast it; eat it. Don't throw it away. It's a
simple thing to ask; and yet it can be very im-
portant a few months from now, when our wheat
supply runs low. Every pound of bread saved
means almost a pound of wiieat saved for people
who will need it desperately by then.
Fisher: I think you ought to start a general
campaign against wasting bread, Mr. Hutson, if
it's that important. This could well be the open-
ing gun. Now, Mr. Acheson, I'd like to ask you
to put this whole question of supplying Europe in
the larger context of our foreign policy.
Acheson: Mr. Fisher, skillful diplomacy is an
empty phrase when you are dealing with people
who face starvation. A healthy, stable Europe
is an important part of a healthy, prosperous
world — the sort of world Americans want to live
in. But there is a political aspect to this ques-
tion too. We want to see democracy grow and
thrive in Europe. If the people of Europe are
hungry and disillusioned, democracy will suffer.
For these reasons, and for the simple reason that
we abhor suffering and starvation everywhere, we
must do our utmost to get more and more wheat
{Continued on next page)
FEBRUARY 10, 1946
197
Civil Administration of Germany
At his press and radio news conference on Jan-
uai-y 29, the Secretary of State was asked to clarify
what kind of civil administrative set-up for Ger-
many was contemplated at this time and whether
there M'ere any outstanding differences between
the State and War Departments on that subject.
The Secretary said there were not any differences
between the State and War Departments on that
subject. He explained that before he left for
London, he conferred with General Eisenhower
on that subject. Secretary Patterson being away,
and he advised General Eisenhower that in his
opinion the occupation and administration of
Germany should continue as at present, that the
State Department was intended to be a policy-
making department and not an operating depart-
ment, and that he thought it would be very unwise
to transfer to the State Department tlie task of
administering occupied Gertnany, that the Depart-
ment had no organization for that purpose. If
the Department attempted to recruit one, he
added, it would be utterly impossible to get an
organization that he would want to take on that
task because it would be necessary to ask men to
accept employment for a short period of occupa-
tion. By the time the Department ever recruited
an organization, the Secretary continued, the
necessity would probably have passed by treaties
of peace. He said that the Army was doing a
splendid job and that it should continue until such
time as it was possible to turn it over to a small
civilian foi'ce. That time, he explained, would
be dependent upon how soon a central adminis-
trative government is established in Germany and
takes over operation. The Secretary said that
there was no difference between the General and
himself, although, the General, of course, said that
tlie Army did not want the task. The Secretary
said that he told Genei'al Eisenhower that he had
read in the newspaper that the President had said
at a news conference that it would be transferred
either to the State Department or to a separate
agency and that either move would be a great mis-
take in his (the Secretary's) opinion. The Sec-
retary asserted that the General had agreed with
him that at this stage there should not be any
transfer, that he had advised the President, and
that the President had concurred. Mr. Byrnes
disclosed also that Secretary Patterson, who had
been exceedingly anxious to transfer it to the State
Department or to any other phice he could transfer
it, had finally acquiesced in it. Asked whether he
had made any estimate as to when that central
German government might be set up and the ad-
ministration turned over to a civilian force, Mr.
Byrnes responded in the negative, adding that that
was dependent upon how soon we can get France
to agree to central administrative agencies. He
said that he hoped that they would. Three or
four months after it is installed, the Secretary
continued, the United States would be able to see
its way to reducing the forces there. He added
that it was a very, very difficult situation at this
time. Questioned about the proposal to proceed
on the three-zone basis without France, the Secre-
tary revealed that that proposal had not l)een
agreed to but that he was hoj^eful that we can
make headway on it. He said tliat he had gone
over the situation with General Clay and Mr.
Murphy in London and that they believe that they
liave nuide great progress m tlie last few montlis
in getting local government established in Ger-
many.
WHEAT CRISIS— Conti7iucd from page 196.
rolling and floating, from our farms to the sea,
and across to Europe, where food is needed as
never before.
Fisher: To summarize this discussion, then,
Europe faces the worst food crisis of its history
during the next 6 months. We are breaking all
records in shipping wheat and other supplies to
the people who need them; but we must do still
more, if mass starvation is to be averted. All the
resources of the Federal Government are being
mobilized to this end and every citizen is asked to
cooperate in any way he can to save European
lives.
AciiESON : It's more than a humanitarian ques-
tion; it's a matter of our national interest. We
have a stake in a liealthy, democratic Europe, and
the best way to protect that stake is to prevent
starvation and disillusionment during Europe's
first winter of peace.
682258—46-
198
DEPARTMENT OF STATE BULLETIN
General Assembly of the United Nations
RESOLUTION ON ATOMIC COMMISSION
The Delegations of the Union of Soviet Social-
ist Republics, the United Kingdom of Great
Britain and Northern Ireland, the United States
of America, France, China, and Canada presented
to the General Assembly of the United Nations a
resolution on an atomic commission. The text
of the resolution as approved by the General As-
sembly on January 24 follows:
Resolved by the (ieneral Assembly of the United
Nations to establish a Commission, with the com-
position and competence set out hereunder, to
deal with the problems raised by the discovery of
atomic energy and other related matters :
I. Establishment of the Gormnission
A Commission is hereby established by the Gen-
eral Assembly with the terms of reference set out
under Section V below.
II. Uelatioiis of the C'o/n/n/ssion toJf/i the Organs
of the United Nations
(a) The Conunission shall submit its reports
and recommendations to the Security Council, and
such reports and recommendations shall be made
public unless the Security Council, in the interest
of peace and security, otherwise directs. In the
appropriate cases the Security Council should
transmit these Reports to the General Assembly
and the members of the United Nations, as well
as to the Economic and Social Council and other
Organs within the framework of the United
Nations.
(b) In view of the Security Council's primary
responsibility under the Charter of the United
Nations for the nuiintenance of international
peace and security, the Security Council shall issue
directions to the Commission in matters affecting
security. On these matters the Commission shall
be accountable for its work to the Security
Council.
III. Composition of the Commission
The Commission shall be composed of one rep-
resentative from each of those States, represented
on the Security Coimcil, and Canada when that
State is not a member of the Security Council.
Each representative on the Commission may have
such assistants as he may desire.
IV. Rules of Procedure
The Commission shall have Mhatever staff it
may deem necessary, and shall make recommenda-
tions for its rules of procedure to the Security
Council, which shall approve tliem as a procedural
matter.
V. Term^s of Reference of the Commission
The Commission shall proceed with the utmost
despatch and enquire into all phases of the prob-
lems, and make such recommendations from time
to time with respect to them as it finds possible.
In particular the Commission shall make specific
proposals:
(a) For extending between all nations the ex-
change of basic scientific information for peaceful
ends ;
(b) For control of atomic energy to the extent
necessary to ensure its use only for peaceful
purposes ;
(c) For the elimination from national arma-
ments of atomic weapons and of all other major
weapons adaptable to mass destruction ;
(d) For effective safeguards by way of inspec-
tion and other means to protect complying States
against the hazards of violations and evasions.
The work of the Commission should proceed by
separate stages, the successful completion of each
of which will develop the necessary confidence of
the world before the next stage is undertaken.
The Commission shall not infringe upon the re-
sponsibilities of any Organ of the United Nations,
but should present recommendations for the con-
sideration of those Organs in the performance of
their tasks under the terms of the United Nations
Charter.
FEBRUARY 10, 1946
199
REPORT FROM LONDON TO THE OFFICE OF PUBLIC AFFAIRS, DEPARTMENT OF STATE
London, Feb. 1 (deliiyed).'
UNRRA Committee Established
At one. of the iiumei'ous committee meetings of
the week a decision was reached to establish a
committee of the General Assembly to enlist the
maxinmm support for UNRRA. This proposal
is subject to General Assembly approval. This
sjjecial connnittee would encourage contributing
nations to increase their contributions to UNRRA
and to urge delinquent contributing countries to
give UNRRA as much financial aid as they can at
the present time. In addition, the special commit-
tee would urge member states of the United Na-
tions which ai'e not now enrolled to join UNRRA.
One of the strongest protagonists of this plan was
Congressman Sol Bloom, U. S. Delegate on Com-
mittee 2. In his comment on the resolution he
stressed the importance of "immediate action". It
was emphasized that UNRRA must complete its
work in Europe at the end of lO-lG and in the Far
East three months later.
Another matter which was discussed at length
in committee and will have to be decided on in the
General Assembly deals with the voice private
organizations will have in United Nations affairs.
The General (Steering) Committee of the As-
sembly agreed in a close vote to permit the World
Federation of Trade Unions "to take pai-t in the
work of the Economic and Social Council for pur-
poses of consultation". Senator Tom Connally,
U. S. Delegate, indicated he would bring this up
again on the floor of the General Assembly. He
argued that if one organization were named other
private organizations such as the American Fed-
eration of Labor should also be named, since thej*
are entitled to the same consideration as the
W.F.T.U.
Other Committee Problems
Scant progress was made in committee discus-
sion on trusteeships. Delegates have not been able
to agree on the question of defining the term states
directly concerned.
On the question of diplomatic immunities and
taxation for members of the Secretariat, a com-
mittee is considering a proposal to set up a gen-
eral convention providing for immunities and tax
exemption. This convention would have to be
ratified by all member states. IMembers of the
U. S. Delegation are concerned in this matter with
the rights of Congress in taxing U. S. citizens.
Also still to be decided is the problem of refu-
gees. Committee 3 on Social, Humanitarian, and
Cultural Questions has been debating two basic
issues on this problem. Some members take the
position that asylum always should be available
to political refugees; others believe that if refu-
gees do not return to their native land it is because
they have records as collaborationists with the
Nazis and Fascists. It is expected that a com-
promise between these two viewpoints will be
reached in committee before the end of the As-
sembly session.
On the problem of Albania's admission into
membership in the United Nations, the Security
Council has decided to keep the item on its agenda.
It will not be brought up during this session of
the Assembly, however. The Council adopted the
American suggestion that this point be held over
until the applications of several other countries
were received, and the Council could then act on
all of them at one sitting.
International Court Justices
Nominations for the 15 justices of the Interna-
tional Court have been completed, each nation
being allowed to name 4 men. Balloting for these
l^osts will be done separately by the General As-
sembly and by the, Security Council, and each
body will put forward those men who have received
a majority of the votes ; then the lists are compared
and the 15 top names common to both are selected.
No nation may have more than one representa-
tive on this extremely important court. Observers
pi-edict spirited and rather lengthy voting on this.
Two other political problems concerning the
situations in Greece and Indonesia are up for im-
" The first section of this report dealing with the Soviet-
Iranian question, the apiMlntnient of Trygve Lie as Sec-
retary General, and the organizing of the Secretariat ap-
peared in the Bulletin of Feb. 3, 1946.
200
DEPARTMENT OF STATE BULLETIN
mediate discussion before the Security Council.
The original irritation of the British Delegation
in having these substantive matters brought before
the Security Council at this time has given way
to a desire to have the problems discussed thor-
oughly and openly.
Transfer of the League of Nations assets to
the United Nations is well on the way to comple-
tion. A United Nations committee and the Super-
visory Committee of the League have been meet-
ing jointly and separately and have completed
their report. These findings will be submitted
shortly to the 51-member ad hoc committee of
the Assembly who will decide on them in behalf
of the United Nations. The League will meet early
in April to ratify these decisions, wind up League
affairs, and turn over their holdings to the LTnited
Nations.
The first meeting of the Military Staff Commit-
tee, which is to work out a world strategic plan
in case the Security Council orders armed action
against an aggressor, will probably be held early
in the week. The meeting has been delayed pend-
ing the arrival of the Soviet military representa-
tives, who reached London Friday, February 1.
Miss Wilkinson Talks to Group Representatives
Miss Ellen Wilkinson, British Minister of Edu-
cation and one of the British Delegation to the
General Assembly, addressed a group of organiza-
tion representatives January 30 in the third of a
series of meetings designed to explain the pur-
poses and operation of the United Nations and its
affiliated agencies. Chairman of the United Na-
tions Educational, Scientific and Cultural Organi-
zation (UNESCO) at its formative meeting in
London last November, Miss Wilkinson outlined
the tasks ahead of UNESCO and how it was closely
tied in with the United Nations Economic and
Social Council. Apart from its iimnediate prob-
lem of the "rehabilitation of education" in the war-
torn countries of Europe, UNESCO has many
plans for developing new educational methods,
Miss Wilkinson explained. "There is the problem
of teaching geography, rather a fluid kind of sub-
ject just now, and how to teach history, which has
been so ideologicallj' twisted and has colored the
attitude of children to world affairs. We would
like to have liistory books tell of the Battle of
Waterloo so that a German, French, and English
child could know they were reading about the
same incident."
In answer to a quei-y on how world citizenship
could be explained to students. Miss Wilkinson
said:
"We want to show them that nationalism doesn't
solve everything and that the particular country
they belong to is not the best in the world in every
respect. We have worked out how we can get the
children to think in their school time of the whole
world as a place they are living in, and we must
develop a practical point of view of explaining
that concept. We have to get down into the class-
room in these things."
Organizations represented at the meeting in-
cluded National League of Women Voters, Gen-
eral Federation of Women's Clubs, National Fed-
eration of Business and Professional Women's
Clubs, B'nai B'rith, Commission on World Peace
of the Methodist Church, World Government As-
sociation, Pan-Pacific Women's Association, Salva-
tion Army, American Council of Education, In-
stitute of International Education, National Peace
Conference, United Nations Association, Church
Peace Union, Girl Scouts of America, Interna-
tional Federation of Women's Clubs, Ecumenical
Eefugee Committee, International Cooperation
Alliance, Ministry of Information, Trades Union
Congress, Education Committee, National Peace
Council, National Federation of Women's Insti-
tutes, World Jewish Congress, Pan-American
League, U.S. Liaison Committee, Associated Coun-
try Women of the World, U.S. Veterans of Foreign
Wars.
An outbreak of influenza which incapacitated
52 members of the 210-man Secretariat forced
postponement for a day of Thursday's Assembly
plenary session to allow the Documents Section
to catch up on the huge amount of work still to be
done. Despite this and the several unscheduled
political problems which the Security Council has
had to handle, it is believed that the first session
of the Assembly will finish on schedule around
the tenth of February.
FEBRUARY 10, 1946
201
Sino-Soviet Treaty of Friendship and Alliance
TREATY OF FRIENDSHIP AND ALLIANCE HETWEEN THE REPUBLIC OF CHINA AND THE U.S.S.R.
The President of the National Government of the
Republic of China, and the Presidium of the Supreme
Soviet of the U.S.S.R.,
Desirous of strengthening the friendly relations that
have always existed betvpeen China and the U.S.S.R.,
through an alliance and good neighborly post-war col-
laboration.
Determined to assist each other in the struggle against
aggression on the part of enemies of the United Nations
in this world war, and to collaborate in the common war
against Japan until her unconditional surrender,
Expressing their unswerving aspiration to cooperate in
the cause of maintaining peace and security for the benefit
of the peoples of both countries and of all the peace-loving
nations.
Acting upon the principles enunciated in the joint dec-
laration of the United Nations of January 1, 1942, in the
Four Power Declaration signed in Moscow on October 30,
1943, and in the Charter of the International Organization
of the United Nations.
Have decided to conclude the present Treaty to this
effect and appointed as their Plenipotentiaries:
The President of the National Government of the Re-
public of China ;
His Excellency Dr. Wang Shih-chieh, Minister for For-
eign Affairs of the Republic of China,
The Presidium of the Supreme Soviet of the U.S.S.R. ;
His Excellency Mr. V. M. Molotov, the People's Com-
missar of Foreign Affairs of the U.S.S.R.,
Who, after exchanging their Full Powers, found in good
and due form, have agreed as follows :
Article I
The High Contracting Parties undertake in association
with the other United Nations to wage war against Japan
until final victory is won. The High Contracting Parties
undertake mutually to render to one another all necessary
military and other assistance and support in this war.
Article U
The High Contracting Parties undertake not to enter
into separate negotiations with Japan and not to con-
clude, without mutual consent, any armistice or peace
treaty either with the present Japanese Government or
with any other government or authority set up in Japan
which do not renounce all aggressive intentions.
Article III
The High Contracting Parties undertake after the ter-
mination of the war against Japan to take jointly all
measures in their power to render imijossible a repetition
of aggression and violation of the peace by Japan.
In the event of one of the High Contracting Parties
becoming involved in hostilities with Japan in consequence
of an attack by the latter against the .said Contracting
Party, the other High Contracting Party shall at once
give to the Contracting Party so involved in hostilities
all the military and other support and assistance with the
means in its power.
This article shall remain in force until such time as
the organization "The United Nations" may on request
of the two High Contracting Parties be charged with the
resp<insibility for preventing further aggression by Japan.
Article IV
Each High Contracting Party undertakes not to con-
clude any alliance and not to take any part in any coalition
directed against the other High Contracting Party.
Article V
The High Contracting Parties, having regard to the
interests of the security and economic development of each
of tliem, agree to work together in close and friendly
collaboration after the coming of peace and to act accord-
ing to the principles of mutual respect for tlieir sovereignty
and territorial integrity and of non-interference in the
internal affairs of the other contracting party.
The Embassy at Chungking transmitted to the Depart-
ment of State, with a despatch dated Dec. 17, 1945, the
English translation of the accompanying treaty and
agreements between the Governments of China and the
Union of Soviet Socialist Republics signed at Moscow
Aug. 14, 1945:
The following minutes of the meeting of July 11, 1945
in Moscow were received from the American Embassy at
Chungking by telegram :
Minutes.
At the fifth meeting held on July 11, 1945 between Gen-
eralissimo Stalin and Dr. T. V. Soong the question of the
withdrawal of Soviet troops from Chinese territory after
the participation by the U.S.S.R. in the war against Japan
was discussed.
Generalissimo Stalin would not like to have a clause
in the agreement covering the entry of Soviet troops into
Manchuria which provides for the withdrawal of Soviet
troops within three months after the defeat of Japan.
However, he said that after the capitulation of Japan
the Soviet troops would commence to withdraw within
three weeks.
Dr. Soong asked how long it would take to complete the
withdrawal. Generalissimo Stalin said he thought the
withdrawal could be completed in not more than two
months.
Dr. Soong further asked when [whether?] the with-
drawal would be definitely completed within three months.
Generalissimo Stalin said three months would be the
maximum for the completion of the withdrawal. Moscow,
August 14, 1945.
652258—46-
PROVISIOHAL EDITION
PORT ARTHUR NAVAL S AREA
IN ACCORDANCE WITH PROVISIONS OF SINOSOVIET TREATY
AUGUST IMSll.
204
DEPARTMENT OF STATE BULLETIN
Article VI
The High Coutracting Parties agree to render each other
every possible economic assistance in the post-war period
with a view to facilitating and accelerating reconstruction
in both countries and to contributing to the cause of world
prosperity.
Article Vll
Nothing in this treaty shall be so construed as may
affect the rights or obligations of the High Contracting
Parties as members of the organization "The United
Nations".
Article VIII
The present Treaty shall be ratified in the shortest
po.ssible time. The exchange of the instruments of ratifi-
cation shall take place as soon as possible In Chungking.
The Treaty comes into force immediately upon its rati-
fication and sliall remain in force for a term of thirty years.
If neither of the High Contracting Parties has given
notice, a year before the expiration of the term, of its
desire to terminate the Treaty, it shall remain valid for an
unlimited time, each of the High Contracting Parties being
able to terminate its operation by giving notice to that
effect one year in advance.
In faith whereof the Plenipotentiaries have signed the
present Treaty and affixed their seals to it.
Done in Moscow, the Fourteenth August, 1945, corre-
sponding to the Fourteenth day of the Eighth month of the
Thirty-fourth year of tlie Chinese Republic, in two copies,
eacii one in the Russian and Chinese languages, both texts
being equally authoritative.
THE PLENIPOTENTIARY OF
THE SUPREME SOVIET
OF THE U.S.S.R.
THE PLENIPOTENTIARY OF
THE PRESIDENT OP
THE NATIONAL GOV-
ERNMENT OF THE RE-
PUBLIC OF CHINA.
[Exchange of Notes Relating to the Treaty of
Friendship and Alliance]
August 11), iS-'iS.
Vouu Excelu;ncy,
With reference to the Treaty of Friend.ship and Alli-
ance signed today between the Republic of China and
tlie U.S.S.R., I have the honor to put on record the under-
standing between the High Contracting Parties as follows :
1. In accordance with the spirit of the aforementioned
Treaty, and in order to init into effect its aims and pur-
poses, the Government of the U.S.S.R. agrees to render
to China moral support and aid in military supplies and
other material resources, such support and aid to be
entirely given to the National Government as the central
government of China.
2. In the course of conversations regarding Dairen and
Port Arthur and regarding the joint operation of the
Cliinese Changchun Railway, the Government of the
U.S.S.R. regarded the Three Eastern Provinces as part
of China and reaffirmed its respect for China's full sov-
ereignty over the Three Eastern Provinces and recognize
their territorial and administrative integrity.
3. As for the recent developments in Sinkiang the
Soviet Government confirms that, as stated in Article V
of the Treaty of Friendship and Alliance, it has no inten-
tion of interfering in the internal affairs of China.
If Your Excellency will be so good as to confirm that the
understanding is correct as .set forth in the preceding
paragraplis, the present note and Your Excellency's reply
thereto will constitute a part of the aforementioned Treaty
of Friendshij) and Alliance.
I take this opportunity to offer Your Excellency the
assurances of my highest consideration.
(Signature) V. M. Molotot
August 14, 1945.
YouB Excellency:
I have the honour to acknowledge receijjt of Your
Excellency's Note of today's date reading as follows :
[Here follows the text of tlie above note from V. M. Molotov.]
I have the honour to confirm that the understanding is
correct as set forth above.
I avail myself of this opportunity to offer to Your
Excellency the assurance of my highest consideration.
(Signature) Wang Shih-chieh
[Exchange of Notes on Outer Mongolia]
August 14, 1945.
Your Exceixency :
In view of the desire repeatedly expressed by the people
of Outer Mongolia for their independence, the Chinese
Government declares that after the defeat of Japan should
a plebiscite of the Outer Mongolian iieople confirm this
desire, the Chinese Government will recognize the inde-
pendence of Outer Mongolia with the existing boundary
as its boundary.
The above declaration will become binding upon the
ratification of the Treaty of Friendship and Alliance be-
tween the Republic of China and the U.S.S.R. signed on
August 14, 194.5.
I avail myself of this opportunity to offer to Y^our Excel-
lency the assurance of my highest consideration.
(Signature) Wano Shih-chieh
August 14, 1945.
Y'ouR Excellency :
I have the honour to acknowledge receipt of Your Excel-
lency's Note reading as follows :
[Here follows the text of the above note from Wang Shih-chieh.]
FEBRUARY 10, 1946
205
The Soviet Governiueut has duly taken note of the above
communication of the Government of the Chinese Republic
and hereby expresses its satisfaction therewith, and it
further states that the Soviet Government will respect the
political independence and territorial integrity of the
People's Republic of Mongolia (Outer Mongolia).
I avail myself of this opportunity to offer to Your Excel-
lency the assurance of my highest consideration.
(Signature) V. M. Molotov
AGREEMENT CONCERNING DAIREN
In view of a Treaty of Friendship and Alliance having
been concluded between the Republic of China and the
U.S.S.R. and of the pledge by the latter that it will re-
spect Chinese sovereignty in the control of all of Man-
churia as an integral part of China ; and with the object of
ensuring that the U.S.S.R.'s Interest in Dairen as a port
of entry and exit for its goods shall be safeguarded, the
Reijublic of China agrees :
1. To declare Dairen a free port open to the commerce
and shipping of all nations.
2. The Chinese Government agrees to apportion in the
mentioned port for lease to U.S.S.R. wharfs and ware-
houses on the basis of separate agreement.
3. The Administration in Dairen shall belong to China.
The harbor-master and deputy harbor-master will be
appointed by the Chinese Eastern Railway and South
Manehurian Railway in agreement with the Mayor. The
harbor-master shall be a Russian national, and the deputy
harbor-master shall be a Chinese national.
4. In peace time Dairen is not included in the sphere
of efficacy of the naval base regulations, determined by
the Agreement on Port Arthur of August 14, 194.5, and
shall be subject to the military supervision or control es-
tablished in this zone only in case of war against Japan.
5. Goods entering the free port from abroad for through
transit to Soviet territory on the Chinese Eastern and
South Manehurian Railways and goods coming from So-
viet territory on the said railways into the free port for
export shall be free from customs duties. Such goods shall
be tran.sported in sealed cars.
Goods entering China from the free port shall pay the
Chinese import duties, and goods going out of other parts
of China into the free port shall pay the Chinese exijort
duties as long as they continue to be collected.
6. The term of this Agreement shall be thirty years and
this Agreement shall come into force upon its ratification.
PROTOCOL TO THE AGREEMENT ON DAIREN
1. At the request of the U.S.S.R. the Chinese Govern-
ment leases to the U.S.S.R. free of charge one half of all
port installations and equipment. The term of lease shall
be thirty years. The remaining half of port installations
and equipment shall be reserved for the use of China.
The expansion or re-equijament of the port shall be made
by agreement between China and U.S.S.R.
2. It is agreed that the sections of the Chinese Chang-
chun Railway running from Dairen to Mukden that lie
within the region of the Port Arthur naval base, shall not
be subject to any military supervision or control estab-
lished in this region.
AGREEMENT ON PORT ARTHUR
In conformity with and for the implementation of the
Treaty of Friendship and Alliance between the Republic
of China and the U.S.S.R., the High Contracting Parties
have agreed as follows :
Article I
With a view to strengthening the security of China and
the U.S.S.R. against further aggression by Japan, tie Gov-
ernment of the Republic of China agrees to the joint use
by the two countries of Port Arthur as a naval base.
Article II
The precise boundary of the area provided in Article I
is de.scribed in the Annex and shown in the map (Annex 1).
Article III
The High Contracting Parties agree that Port Arthur,
as an exclusive naval base, will be used only by Chinese
and Soviet military and commercial vessels.
There shall be established a Sino-Soviet Military Com-
mission to handle the matters of joint use of the above-
mentioned naval base. The Conuuission shall consist of
two Chinese and three Soviet representatives. The Chair-
man of the Commission shall be appointed by the Soviet
side and the Vice Chairman shall be appointed by the
Chinese side.
Article IV '■
The Chinese Government entrusts to the Soviet Govern-
ment the defence of the naval base. The Soviet Govern-
ment may erect at its own expense such installations as
are necessary for the defence of the naval base.
Article V
The Civil Administration of the whole area will be Chi-
nese. The leading ixjsts of the Civil Administration vs'ill
be appointed by the Chinese Government taking into ac-
count Soviet interests in the area.
The leading posts of the civil administration in the city
of Port Arthur are appointed and dismissed by the Chinese
Government in agreement with the Soviet military com-
mand.
The proposals which the Soviet military commander in
that area may address to the Chinese civil administration
in order to safeguard security and defence will be fulfilled
by the said administration. In cases of disagreement, such
cases shall be submitted to the Sino-Soviet military com-
mission for consideration and decision.
206
DEPARTMENT OF STATE BULLETIN
Article VI
The Goveniuient of U.S.S.R. have the right to maintain
in region mentioned in Article II, their army, navy and air
force and to determine their location.
Article VII
The Government of the U.S.S.R. also undertakes to
establish and keep up lighthouses and other installations
and signs necessary for the security of navigation of the
area.
Article VIII
After the termination of this agreement all the installa-
tions and public property installed or constructed by the
U.S.S.R. In the area shall revert without compensation to
the Chinese Government.
Article IX
The present agreement is concluded for thirty years. It
comes into force on the day of its ratification.
In faith whereof the plenipotentiaries of the High Con-
tracting Parties have signed the present agreement and
aflixed thereto their seals. The present agreement is made
in two copies, each in the Russian and Chinese language,
both texts being authoritative.
Done in Moscow, August 14. 1945, corresponding to the
14th day of the 8th month of the 34th year of the Chinese
Republic.
THE PLENIPOTENTIARY OF THE PLENIPOTENTIARY OF
THE PRESIDIUM OF THE PRESIDENT OF
THE SUPREME SOVIET THE NATIONAL GOV-
OF THE U.S.S.R. BRNMENT OF THE RE-
PUBLIC OF CHINA.
APPENDIX TO "AGREEMENT ON PORT ARTHUR"
SIGNED IN MOSCOW ON AUGUST 14, 1945 '
The territory of the area of the naval base provided
for by paragraph II of the Agreement on Port Arthur is
situated south of the line which begins on the west coast
of Liaotung Peninsula — .south of Hiiusantaovvan— and
follows a general easterly direction across Shihe Station
and the point of Tisoukiachutse to the east coast of the
same peninsula, excluding the town of Dalny (Dairen).
All the islands situated in the waters adjoining the
west side of the area on Liaotung Peninsula established
by the Agreement, and south of the line passing through
the points 39°00' North latituile, ]20°4!t' East longitude;
30°20' North latitude, 121°31' East longitude, and beyond
in a general northeasterly direction along the axis of the
fairway leading to port I'ulantien to the initial point on
land, are included in the area of the naval base.
All the islands situated within the waters adjoining
the eastern part of the area on Liaotung Peninsula and
^ As printed in the Moscow News of Aug. 29, 1945.
2 Reproduced on pages 202 and 203.
south of the line passing from the terminal point on land
in an easterly direction towards the point 30°20' North
latitude, 123°08' East longitude, and farther southeast
through the point 39°00' North latitude, 123n6' East
longitude, are included in the area. (See attached map,^
scale 1 : 500,000. )
The boundary line of the district will be demarcated
on the spot by a mixed Soviet-Chinese Commission. The
Commission shall establish the boundary jiosts and, when
need arises, buoys on the water, compile a detailed de-
scription of this line, enter it on a topographical map
drawn to the scale of 1:25,000 and the water boundary
on a naval map drawn to the scale of 1 : 300.000.
The time when the Commi.s.sion shall start its work is
subject to special agreement between the parties.
Descriptions of the boundary line of the area and the
maps of this line compiled by the above Commission are
subject to approval by both Governments.
W. S. V. M.
AGREEMENT REGARDING RELATIONS BETWEEN
THE CHINESE ADMINISTRATION AND THE COM-
MANDER-IN-CHIEF OF THE SOVIET FORCES
AFTER THE ENTRY OF SOVIET TROOPS INTO
THE "THREE EASTERN PROVINCES" OF CHINA
DURING THE PRESENT JOINT MILITARY OPER-
ATIONS AGAINST JAPAN
The President of the National Government of China
and the Presidium of the Supreme Council of the Union
of Soviet Socialist Republics, desirous that relations be-
tween the Chinese Administration and the Commander-in-
Chief of the Soviet forces after the entry of Soviet troops
into the "Three Eastern Provinces" of China during the
present joint military operations against Japan should be
governed by the spirit of friendship and alliance existing
between the two countries, have agreed on the following :
1. After the Soviet troops enter the "Three Eastern
Provinces" of China as a result of military operations, the
supreme authority and responsibility in all matters relat-
ing to the prosecution of the war will be vested, in the
zone of ojierations for the time required for the operations,
in the Commander-in-chief of the Soviet forces.
2. A Cliinese National Government reiiresentative and
staff will be appointed for the recovered territory, who.se
duties will be :
(a) To establish and direct, in accordance with the laws
of China, an administration for the territory cleared of
tlie enemy.
(&) To establish the cooperation between the Chinese
armed forces, both regular and irregular, and the Soviet
forces in recovered territory.
(c) To ensure the active cooperation of the Chinese
administration with the Commander-in-chief of the Soviet
forces and, specifically, to give the local authorities direc-
tions to this effect, being guided by the requirements and
wishes of the Commander-in-chief of the Soviet forces.
FEBRUARY 10, 1946
207
3. To ensure contact between the Commander-in-chief
of the Soviet forces and the Chinese National Government
representative a Chinese military mission will be appointed
to the Commander-in-chief of the Soviet forces.
4. In the zones under the supreme authority of the Com-
mander-in-chief of the Soviet forces, tlie Cliinese National
•Government administration for the recovered territory will
maintain contact with the Commander-in-chief of the
Soviet forces through the Chinese National Government
representative.
5. As soon as any part of the liberated territory ceases
to be a zone of immediate military oijerations, the Chinese
National Government will assume full autliority in the
direction of public affairs and will render the Commander-
in-chief of the Soviet forces every assistance and support
through its civil and military bodies.
6. All persons belonging to the Soviet forces on Chinese
territory will be under the jurisdiction of the Commander-
in-Chief of the Soviet forces. All Chinese, whether civilian
or military, will be under Chinese Jurisdiction.- This juris-
diction will aLso extend to the civilian population on Chi-
nese territory even in the case of offences against the
Soviet armed forces, with the exception of offences com-
mitted in the zone of military operations under the juris-
diction of the Commander-in-chief of the Soviet forces,
such cases coming under the jurisdiction of the Com-
mander-in-chief of the Soviet forces. In disputable cases
tlie question will be settled by mutual agreement between
the Chinese National Government representative and the
Commander-in-chief of the Soviet forces.
7. Witli regard to currency matters after the entry of
Soviet troops into the "Three Eastern Provinces" of Cliina,
a separate agreement shall be reached.
8. The present Agreement comes into force immediately
upon the ratification of the Treaty of Friendshiij and Alli-
ance between China and the U.S.S.R. signed this day. The
Agreement has been done in two copies, each in the Chinese
and Russian languages. Both texts are equally valid.
Date
ON THE AUTHORIZATION ON THE AUTHORIZATION
OP THE NATIONAL OF THE GOVERNMENT
GOVERNMENT OF THE OF THE UNION OF
REPUBLIC OF CHINA. SOVIET SOCIALIST RE-
PUBLICS.
AGREEMENT BETWEEN THE REPUBLIC OF CHINA
AND THE U.S.S.R. CONCERNING THE CHINESE
CHANGCHUN RAILWAY.
The President of the Republic of China and the Pre-
sidium of the Supreme Council of the U.S.S.R., desiring
to strengthen the friendly relations and economic bonds
between the two countries on the basis of the full observa-
tion of the rights and interests of each other, have agreed
as follows :
Article I
After the Japanese armed forces are driven out of the
Three Eastern Provinces of China the main trunk line
of the Chinese Eastern Railway and the South Manchurian
Railway from Manchuli to Suifenho and from Harbin to
Dairen and Port Arthur united into one railway under
the name "Chinese Changchun liailway" shall be in joint
ownership of the U.S.S.R. and tlie Republic of China and
shall be operated by them jointly.
There shall be joint ownership and operation only of
those lands acquired and railway auxiliary lines built by
the Chinese Eastern Railway during the time of Russian
and joint Sino-Soviet administration and by the South
Manchurian Railway during the time of Russian adminis-
tration and which are designed for direct needs of these
railways as well as the subsidiary enterprises built dur-
ing the said periods and directly serving these railwr.;s.
All the other railway branches, subsidiary enterprises and
lands shall be in the complete ownership of the Chinese
Government.
The joint operation of the aforementioned railway shall
be undertaken by a single management under Chinese sov-
ereignty and as a purely commercial tran.sportation enter-
prise.
Article II
The High Contracting parties agree that their joint
ownership of the railway sliall be in equal shares and
shall not be alienable in whole or in jjart.
Article III
The High Contracting parties agree that for the joint
operation of the said railway the Sino-Soviet Company
of the Chinese Changchun Railway sliall be formed. The
Company shall have a Board of Directors to be composed
of ten members of whom five shall be appointed by the Chi-
nese Government and live by the Soviet Government. The
Board of Directors .shall be in Changchun.
Article IV
The Chinese Government shall appoint one of the Chi-
nese Directors as President of the Board of Directors
and one as the Assistant President. The Soviet Govern-
ment shall appoint one of the Soviet Directors as Vice-
President of the Board of Directors, and one as the
Assistant Vice-President. Seven persons shall constitute
a quorum. When questions are decided by the Board,
the vote of the President of the Board of Directors shall
be counted as two votes.
Questions on which the Board of Directors cannot reach
an agreement shall be submitted to the Governments of the
Contracting Parties for consideration and settlement in
an equitable and friendly spirit.
Article V
The Company shall establish a Board of Auditors which
shall be composed of six members of whom three are
appointed by the Chinese Government and three appointed
by the Soviet Government. The Chairman of the Board of
Auditors shall be elected from among the Soviet Auditors,
and Vice-Chairman from among the Chinese auditors.
When questions are decided by the Board the vote of the
Chairman shall be counted as two votes. Five persons
shall constitute a quorum.
208
DEPARTMENT OF STATE BULLETIN
Article VI
Foi- the administration of current affairs the Board of
Directors sliall appoint a manager of the Chinese Chang-
chun Kailway from among Soviet citizens and one assist-
ant manager from among Chinese citizens.
Article VII
Tlie Board of Auditors sliall appoint a General-Comp-
troller from among Chinese citizens, and an assistant
General-Comptroller from among Soviet citizens.
Article VIII
The Chiefs and Assistant Chiefs of the various depart-
ments, Chiefs of sections, station masters at important
stations of the railway shall be appointed by the Board
of Directors. The Manager of the Railway has right to
recommend candidates for the above-mentioned posts.
Individual members of the Board of Directors may also
recommend such candidates in agreement with the Jlan-
ager. If the Chief of a department is a national of China,
the Assistant Chief shall be a national of the Soviet Union,
and vice versa. The appointment of the Chiefs and
assistant chiefs of deiwrtments and Chiefs of sections and
station masters shall be made in accordance with the prin-
ciple of equal representation between the nationals of
China and nationals of the Soviet Union.
of a separate agreement, that the supply of coal for the
operation of the railway will be fully secured.
Article XIII
The railway shall pay taxes to the Government of the
Republic of China the same as are paid by the Chinese
state railways.
Article XIV
Both Contracting Parties agree to provide the Board
of Directors of the Chinese Changchun Railway with work-
ing capital the amount of which will be determined by the
Statute of the Railway.
Profits and losses in exploitation of the railway shall
be equally divided between the Parties.
Article XV
For the working out in Chungking of the Statutes of
joint operation of the railway the High Contracting Parties
undertake within one month of the signing of the present
Agreement, to appoint their representatives — three repre-
sentatives from each Party. The Statute shall be worked
out within two months and reported to the two Govern-
ments for their approval.
Article IX
The Chinese Government will bear the responsibility for
the protection of the said Railway.
The Chinese Government will also organize and super-
vise the railway guards who shall protect the railway
buildings, installations and other properties and freight
from destruction, loss and robbery, and shall maintain the
normal order on the railway. As regards the duties of the
police in execution of this Article, they will be determined
by the Chinese Government in consultation with the
Soviet Government.
Article X
Only during the time war against Japan the railway
may be used for the transiwrtation of Soviet troops. The
Soviet Government has the right to transport by the
a^ove-taentioned railway for transit purpose military
goods in sealed cars without customs inspection. The
guarding of such military goods shall be undertaken by
the railroad police and the Soviet Union shall not send
any armed escort.
Article XI
Goods for through transit and transported by the
Chinese Changchun Railway from Manchuli to Suifenho
or vice versa and also from Soviet territory to the ix>rts
of Dairen and Port Arthur or vice versa shall be free from
Chinese Customs duties or any other taxes and dues, but
on entering Chinese territory such goods shall be subject
to Chinese Customs inspection and verification.
Article XII
The Chinese Government shall ensure, on the basis
Article XVI
The determination, in accordance with the provisions in
Article I, of the properties to be included in the joint owner-
ship and operations of the railway by China and U.S.S.R.
shall be made by a Conunission to be composed of three
representatives each of the two Governments. The Com-
mission shall be constituted in Chungking within one
month after the signing of the present Agreement and shall
terminate its work within three months after the joint
operation of the railway shall have begun.
The decision of the Commission shall be reported to the
two Governments for their approval.
Article XVII
The term of this present Agreement shall be thirty years.
After the expiration of the term of the present Agreement,
the Chinese Changchun Railway with all its properties
shall be transferred without compensation to the owner-
.ship of the Rei>ublic of China.
Article XVIII
The present Agreement shall come into force from the
date of its ratification.
Done in Moscow, August 14th, 194.5, corresponding to
the 14th day of the 8th month of the 34th year of the
Chinese Republic, in two copies, each in the Russian and
Chinese languages, both texts being equally authoritative.
THE PLENIPOTBNTIARY OF THE PLENIPOTENTIARY OP
THE PRESIDIUM OF THE PRESIDENT OF
THE SUPREME SOVIET THE NATIONAL GOV-
OF THE U.S.S.R. BRNMBNT OF THE RE-
PUBLIC OP CHINA.
FEBRUARY 10, 1946
209
Foreign Observers at Atomic-Bomb Demonstration
At the Secretary's press and radio news confer-
ence on January 29, a correspondent said tliat on
January 28 Mr. Attlee told the Commons that
Britain had accepted the United States invitation
to send military observers to the Navy's atomic-
bomb demonstration and asked whether Canada
had also received such an invitation. A corre-
spondent also inquired about the State Depart-
ment's attitude on additional invitations and
asked whether a final Government policy on the
matter had been determined. The Secretary said
that he understood that a final Government policy
on the matter had not been determined by the
Joint Chiefs of Staff, but he asserted that it was
the Department's attitude and his attitude — which
had been approved by the President — that the
members of the United Nations Atomic Energy
Commission (consisting of 11 members of Security
Council plus Canada) should be invited. Asked
whether that would include their staffs and ex-
{)erts, Mr. Byrnes said that he had not gone into
that. He explained in reply to a second question
that this Government had not up to this time even
considered anything about a staff or members to
represent the United States on the Commission.
Asked whether there was a conflict or some dif-
ference in point of view between the State Depart-
ment and Wliite House on one hand and the Army
and Navy on the other, the Secretary said that he
did not know of any. He said that for all he knew
the Joint Chiefs of Staff might be in entire accord
with State Department attitude. The Secretary
emjahasized that the Department's position does
not mean at all that those are the only people who
are going to be invited. That is a matter, he ex-
plained, that will be determined by the Secretary
of War and the Secretary of the Navy after con-
sultation with the Joint Chiefs of Staff and ap-
proved by the President. When asked if the
State Department was consulted in a decision to
continue the manufacture of atomic bombs, the
Secretary replied in the negative, explaining that
tlie matter had never been discussed witl^ the
Department.
Political Murders in Poland
In answer to a question regarding the allegations
that a reign of political murders is taking place
in Poland, the Secretary of State said on January
31 : In regard to the allegations that a reign of
political murders is taking place in Poland, it may
be stated that recent reports indicate that a number
of murders have taken place, of which in some in-
stances prominent members of political parties
have been the victims.
While this Government is fully cognizant of the
unsettled conditions which necessarily existed in
Poland upon its liberation after almost six years
of occupation and realizes the difficulties encoun-
tered by the Polish Provisional Government in re-
storing order under such conditions, nevertheless
it is regrettable that the Polish Security Police
appear to have been implicated in a number of
these cases.
In view of the responsibilities assumed by the
United States Government at Yalta and Potsdam,
looking to the establisliment of a democratic
representative government in Poland, this Gov-
ernment must necessarily follow closely Polish
political developments. The greatest importance is
attached to the fulfilment of Poland's election com-
mitments and the American Ambassador has on
several occasions brought to the attention of the
Polish Government the fact that the activities of
the Security Police hinder the fulfilment of this
commitment. I have therefore requested the
American Embassy in Warsaw to inform the Pol-
ish Government that we are relying on that Gov-
ernment to take the necessary steps to assure the
freedom and security which are essential to the
successful holding of free election.'?.
210
DEPARTMENT OF STATE BULLETIN
The Charter and
the Promotion of Human Rights
Article by ALICE M. MeDIARMID
PUBLIC ATTENTION lias been confeutrated ou the
evolution and expected operation of the more
spectacidar features of tlie Charter of the ITnited
Nations, particularly the use of force to maintain
peace. In comparison there probably has been
little realization of the long and careful work
which has gone into other jjrovisions of the Char-
ter or of the way in which they may be expected
to work. The promoticm of human rights by the
Organization is a case in point.
In this article there is no desire to make attribu-
tions or to give credit for the final provisions, for
ideas come from many sources and the success of
the Organization depends in the last analysis on
its being a cooperative enterprise. The promotion
of human rights, however, affords a striking ex-
ami^le of the influence of public opinion ou the
policy of the United States and of other govern-
ments.
The evolution of popular opinion on the impor-
tance of luiman rights is in itself an interesting 1
story. Concern for the observance of the rights
of individuals has been part of the humanitarian
tradition of the American people and has caused
them to sympathize with the oppressed of all lands.
But, although Americans were horrified at Nazi
excesses, they generally felt cjuite certain that a
Nazi program of systematic persecution and denial
of ordinary human rights could never be imposed
upon tliis country and, therefore, could never se-
riously affect the people of the United States.
The outbreak of war in Europe shook this com-
placency, for it made clear that the Nazis by
flouting the humanitarian feeling common to all
peoples and by cutting the Germans off from the
Mrs. McDiarinid is an Assistant in the Division of Inter-
national Organization Affairs, Office of Special Political
Affairs, Department of State.
' H. Doc. .'528, 76th Cong., 3d sess.
' Bulletin of Jan. 3, 1942, p. 3.
outside world had mokled a fanatical population
that was a menace to the j)eace and security of all
neigjiboring states and indeed of all states every-
where. The late President Roosevelt was atnong
the first to see this clearly and to point it out in
his message to Congress in 1940 when he said :
"Of course, the peoples of the world have the right
to choose their own form of government. But we
in this Nation still believe that such choice should
be predicated on certain freedoms which we think
are essential everywhere. We know that we our-
selves will never be wholly safe at home unless
other governments recognize such freedoms." '
As the danger became clearer, he set forth the now
famous Four Freedoms and led the way toward
world-wide realization of their importance. This
stage was closed by the recognition by the United
Nations in their Declaration of January 1, 1942
"that complete victory over their enemies is essen-
tial to decent life, liberty, independence and re-
ious freedom, and to preserve human rights and
justice in their own lands as well as in other
lands." 2
From that time on, those who were interested in
liuinan rights, either as officials or as leaders of
public opinion, realized that there was a twofold
effort to be made — to restore respect for human
rights in lands under Nazi domination and to
insure the promotion of human rights through
international organization. It is the latter which
concerns us here.
■ At first the emphasis was upon the development
of an international bill of rights, comparable to
our own Bill of Rights but including some of the
concepts of social justice which have grown up
within the last 50 or 100 years. Abstractly con-
sidered, an international bill of rights accepted
by all nations, even if not directly enforceable in
favor of individuals, seemed the ideal solution.
But. when the problems of determining what rights
FEBRUARY 10, 1946
211
were to be regarded as part of the lieritage of all
men and of making them meaningful in all coun-
tries were considered in detail, it became clear that
an international bill or declaration of rights would
have to be a goal of international cooj)eration for
the promotion of human rights and not the first
step. This, for example, was the conclusion of
the American Law Institute's committee of law-
yers and political scientists, representing most of
the principal cultures of the world, who drafted a
"Statement of Essential Human Rights"'.
With realization that there was no easy way to
promote the observance of human rights came in-
creased desire to insure that the international or-
ganization which was in the making would be able
to take steps along the road. The Commission to
Study the Organization of Peace, which advocated
an international conference to prepare an inter-
national bill of rights, urged the establishment of a
United Nations Commission on Human Rights
linked with other international agencies within the
orbit of a general international organization. The
group of American and Canadian political scien-
tists and international lawyers who endeavored to
state "the international law of the future" declared
that the executive council of the international or-
ganization "should have power to take cognizance
of the prevalence within the territory of any State
of conditions which menace international peace
and order, and to take such action as it may deem
to be necessary for the protection of the interests
of the Connnunity of States". Many other or-
ganizations and countless individuals called for
action by the projected international organization
to protect human rights and fundamental free-
doms. Among the most active of these were reli-
gious groups, whose concern for the dignity of the
individual made them proponents of all basic
human rights, including of course freedom of re-
ligion. Press and radio representatives conducted
a campaign for recognition of freedom of informa-
tion. All contributed to the development of a cli-
mate of opinion favorable to some concrete action
to embody the objective of respect for human rights
in the blueprint of the international organization.
The Department of State followed all these de-
velopments with interest, sending observers to sit
with some of the groups considering the problem
and conferring with representatives who visited
the Department. In addition, studies of various
aspects of the problem were made liy interested
divisions and interdivisional committees. A spe-
cial committee made a careful study of the rights
generally recognized in national constitutions and
of their suitability for incorporation in an inter-
national bill of rights. Later, special interdivi-
sional committees considered questions of religious
liberty and freedom of information.
During the whole period from 194:2 to 1944,
while i^lans for an international organization were
under discussion, the division which is now called
the Division of Inteinational Organization Affairs
and several superidr oiiicers studied how the inter-
national organization could promote respect for
and observance of basic human rights. There was
little to guide the work, for, while the League of
Nations and the International Labor Organization
had functions that involved the protection of
minorities, the promotion of the rights of native
peoples in mandated areas, and the adoption of
conventions to improve conditions of labor, neither
was based upon recognition of the principle that
there were some rights so basic that all people
everywhere were entitled to enjoy them. Further-
more, those in charge of developing projjosals for
the international organization recognized tliat an
organization based on the sovereign equality of
peace-loving states would not operate directly to
protect human rights. The various policy groups
which considered the fornnilation of the LTnited
States proposals for an international organization,
therefore, considered various methods by which
the organization could i)romote respect for and
observance of human rights. The result of these
labors was that the American Delegation went into
the Dumbarton Oaks Conversations with a pro-
posal that the General Assembly initiate studies
in the field of human rights.
At Dumbarton Oaks the participating govern-
ments found themselves in agreement that the pro-
motion of human rights should be included in the
Charter of the international organization. The
basic reason why an international organization for
peace and security should concern itself with
human rights was stated very clearly in the Dum-
barton Oaks Proposals, which set forth that the
organization should promote respect for human
rights and fundamental freedoms "With a view
to the creation of conditions of stability and well-
being which are necessary for peaceful and
friendly relations among nations".'' From that
^ For text of the Proposals see Department of State pub-
lication 2297 and Bulletin of Oct. 8, 1944, p. 368.
212
DEPARTMEI\T OF STATE BULLETIN
time, it was the expectation of the Department that
one of the special commissions under the Economic
and Social Council would be a commission on
human rights.
In the period between the Dumbarton Oaks Con-
versations and the United Nations Conference on
International Organization at San Francisco, the
private organizations and individuals interested
in the protection of human rights redoubled their
efforts in order to insure that the Charter would
fulfil and amplify the commitment in the Dum-
barton Oaks Proposals. Many governments also
expressed their desire to see the Proposals
strengthened in the field of human rights.
All these influences reacted upon one another
in the first days of the San Francisco conference.
The consultants to the American Delegation ap-
pointed by national groups at the invitation of the
Department of State gave impetus to the move-
ment. On May 2 a large number of them signed a
letter urging the American Delegation to sponsor
amendments (1) mentioning the promotion of re-
spect for human rights and fundamental freedoms
among the purposes of the Organization; (2) in-
cluding respect for human rights among the pi-in-
ciples of the Organization; (3) incorporating the
development of human rights among the functions
of the General Assembly; and (4) insuring the
establishment of a commission on human rights.
On May 5 the four sponsoring powers proposed
amendments that met the spirit of these sugges-
tions. These amendments, with minor drafting
changes, were incorporated in the Charter, for
they satisfied, in general, the desires of other dele-
gations. In the final text of the Charter the phrase
"human rights and fundamental freedoms for all
without distinction as to race, sex, language, or
religion" occurs no less than five times.^ In addi-
tion, the preamble reaffirms the faith of the peo-
ples of the United Nations in fundamental human
rights, in the dignity and worth of the human per-
son, and in the equal rights of men and women.
In addition to providing for a commission on
human rights the Charter provides that the Gen-
eral Assembly shall initiate studies and make rec-
ommendations for the purpose of "assisting in
the realization of human rights and fundamental
freedoms for all without distinction as to race,
sex, language, or religion" and that the Economic
* For text of the Charter see Department of State pub-
lication 235.3 and Bulletin of June 24, 1945, p. 1119.
" Bulletin of May 20, 1945, p. 928.
and Social Council "may make recommendations
for the purpose of i^romoting respect for, and ob-
servance of, human rights and fundamental free-
doms for all." It declares also that promoting
respect for human rights is a purpose of the Or-
ganization and a responsibility of the General
Assembly and, under its authority, of the Eco-
nomic and Social Council.
Former Secretary of State Edward R. Stettin-
ius, Jr., summed up the steps taken at the United
Nations Conference when he said on May 15 : ''
"The provisions proposed for the Charter will not,
of course, assure by themselves the realization of
human rights and fundamental freedoms for all
people. The provisions are not made enforceable
by any international machinery. The responsi-
bility rests with the member governments to carry
them out. We can here make only a beginning,
but I believe it is a good and substantial begin-
ning. . . . The United States Government
will work actively and tirelessly, both for its own
people, and — through the international Organiza-
tion— for peoples generally, toward the protection
and promotion of these rights and freedoms. We
must be eternally vigilant against assaults upon
them. We must also act affirmatively to enlarge
the scope of their protection and to nourish their
growth. As long as rights and freedoms are
denied to some, the rights and freedoms of all are
endangered. Everything possible must be done
to bring to eifective life not only the commission
on human rights, but the other vital agencies and
functions of the Economic and Social Council."
In this spirit, the United States and the other
nations represented on the Executive Committee
of the Preparatory Commission of the United Na-
tions at London labored to prepare recommenda-
tions for the consideration of the Preparatory
Commission itself and eventually of the General
Assembly of the United Nations. The Executive
Committee not only recommended the establish-
ment of a Commission on Human Rights, which
in any case is mandatory under the Charter, but
also recommended that the work of the Commission
be directed toward the following subjects :
1. formulation of an international bill of rights
2. formulation of recommendations for an inter-
national declaration or convention on such matters
as civil liberties, status of women, freedom of in-
formation
( Continued on page 222 )
FEBRUARY 10, 1946
213
Interaction of Migration Policies
And World Economy
By GEORGE L. WARREN
UNFORTUNATKi.v, tile licld of iiittM-iiati'ninl
migration has not uttrafted tlu' attention of
research bodies in a manner conimensnrate witli
its importance in the international scene. R?-
search in the tieUl of population changes has been
directed to the movement from lural to nrban
areas and to the increase or decrease of pojinla-
ti(ms in given countries resulting from the chang-
ing rates of births and deaths and the losses' from
wars. The findings in the latter field were par-
ticularly helpful during the war as a basis for
estimates of relief needs in liberated areas on the
part of government agencies and ITNRRA. Sta-
tistics of emigration and innnigration were com-
piled by the International Labor Office during the
early thirties, but these materials, to my knowl-
edge, have never been studied with a view to the
discovery of clues to the part which migration or
the absence of migration played in the period
between World War I and AVorld Wai- II. Fur-
thermore, the ])olicies of countries of potential
immigration have not yet been fornuilated with
respect to post-war innnigration. (ienerally
speaking pre-war immigration legislation renniins
in force in most countries. It may also be said
that special innnigration legislation (H' rather
administrative provisions ado])ted during the war
for security reasons are no longer in effect in
most immigration countries. The trend of think-
ing on the subject appears to be towsfrd selective
innnigration with interest fcxaised on those immi-
grants pos.sessing the particular professional,
technical, or agricultural skills required to balance
the internal economy of the country concerned.
It appears unlikely that immigration policies will
become clarified until the level of economic ac-
tivity in the post-war world is more clearly indi-
cated. A high level of economic activity with
full internal employment of industrial and agri-
cultural workers may facilitate migration move-
ment. Correspondingly, a low level of economic
activity will tend to restrict the movement of im-
migrants. Apart from economic considerations
the political and cultural factors pertaining to
])articular groups of potential immigrants will
prove an important factor in the determination
of policies. Countries of innnigration tend to
avoid the introduction into their territories of
Okl AVorld political and cultural attitudes which
may survive to retard early assimilation to the
culture of the adopted country.
We are now confronted with the practical po-
litical, economic, cultural, and demographic
problems of the uprooted populations of Europe
and the Far East wdiich have emerged from World
War 11.^ The relation of these problems to &e
war as cause or effect remains to be determined.
It is pertinent to note at the moment that ques-
tions of overpopulation and living space were in-
struments of the propaganda used by the Axis
powers in their bid for world supremacy.
The inevitable upsurge of nationalism resulting
from the war may tend to redistribute populations
on political and demographic lines without ade-
quate consideration for the cultural and economic
factors which will need to be taken into account
in the building of a lasting peace.
My contribution to the discussion this morning
will consist primarily of a review of the major
movements which have taken place prior to and
during the war — an interpretation and knitting
together, if you will, of some of the headlines on
The above address was delivered at RadcUffe College
iu Cambridge, Mass., on Jan. 31 and released to the press
on the same date. Mr. Warreu is adviser on refvigees and
displaced persons in the Office of the Assistant Secretary
for Economic AITairs, Department of State.
' See article on "First Inter-Anieriean Demographic
Congress" in Bulletin of Jan 20, 1946, p. 66.
214
DEPARTMENT OF STATE BULLETIN
the subject that have oaptiu'ed your attention :
The flight of Jewish refugees from central
Europe, the evacuation of women and children
from lioml)ed areas, tlie drafting of slave labor into
(jrerinanv. the repatriation of 5,500,000 United
Nations nationals from Germany by the Allied
armies last suunner, the comparable repatriations
which are now taking place in the Far East, and
the present flow of Volksdeiitschc from the east of
Eui'ojie to the areas of Germany now occupied by
tlie British. French, United States, and Soviet
forces.
When Judge Michael Hansson closed the Nan- ■
sen Office for Refugees in December 1938, he re-
ported approximately 600,000 persons displaced
by the last war still living in uncertain civil status.
They had not accjuired rights of permanent resi-
dence, a nationality, or the security attached to
these privileges and obligations. Already in 1933
on the assumption of power in Germany by the
Nazis, the dispersal of Jews and others who could
not accept the Nazi political philosojihy was under
way to add additional thousands of refugees dur-
ing a period of world-wide economic depression.
By 1939 when Germany marched into Poland,
over 400,000 of the 1,000,000 racial, religious, and
political refugees eventually to be affected in cen-
tral Europe had left Germany, Austria, and the
Sudetenland, some to find homes in the Western
Hemisphere, others in Palestine, and still others to
remain in western Europe awaiting opportunities
for permanent emigration overseas.^ Many of
these latter were trapped when the Germali armies
occupied Mestern Europe and finally shared the
fate of their fellow victims in the concentration
camps in Germany and Poland.
From 1939 to 1941 Germany in pursuit of her
theoi-y of racial purism transferred to the Keich
and to the area of western Poland, incorporated
into the Reich, over fiOO.OOO VoRsdcufsehe for-
merly resident in the Baltic States, eastern Europe,
and the south Tirol.
The invasion of Poland dispersed over 1.500.000
people eastward into the Soviet Union and south-
eastward into the Balkan States. Some 35,000 of
tliese Polish refugees trekked eventually to Tehran
and are now housed in camps in Iran, India, East
Africa, and Mexico awaiting repatriation to
Poland.
' For articles on displncpd persons in Europe and Japan,
see BuLi.KTiN of Mar. 23, l!!4r), p. 491. and Oct. 7, l!>4."i, p.
o30.
Norway experienced two displacements of popu-
lation, eacli in excess of 3(t(i,(l(H) persons, the first
in connection with the original occupation of the
country and the second as the Nazi army retreated
before the Soviet forces from northern Norway
in the late months of 1944. In midwinter the
population of northern Norway was ruthlessly
evacuated and tlieir homes, farms, and cattle de-
stroyed in wanton waste as the final act of a
defeated army.
The movement of 3,500,000 civilians from the
Netherlands, Belgium, and northern France
southward in July 1940 was an example of civilian
flight from innnodiate military action. After the
armistice most of these returned soon to their
homes to take up life again as occupied subjects.
However, such movements inevitably leave behind
numbers who remain, and this one proved to be no
exce])tion. The residue of internal displacement
in France resulting from the German and later
the Allied invasions jjrobably approximated 200,-
000 to 300,000 persons. Many of these displaced
persons await the provision of transportation
and housing to return to their native cities and
villages with the consequent delays in the resump-
tion of the normal economic life of those conmiuni-
ties. Note should also be taken in this connec-
tion of the residue of the Spanish refugee move-
ment into France in early 1939, numbering an
estimated 30,000.
The German advance into Yugoslavia and
Greece did not result in displacements comparable
in numbers to those in Poland and France. How-
ever, some 20,000 Greeks were forced to flee to the
Near East and Africa, and during the later course
of the war over 37.000 Yugoslavs escaped to Italy
and were eventually cared for in camps admin-
istered by UNRRA in the neighborhood of Cairo.
Of these groups some 25.000 Yugoslavs and a ma-
jority of the Greeks have already been repatriated.
No reliable estimates have appeared with re-
spect to tfie wide-spread dislocation of popula-
tion resulting from the German invasion of the
Soviet Union in June 1941. This exodus eastward
was probably more extensive than any movement
of the war in Europe. A suggestion of the sev-
eral millions of persons involved develops from
the fact that over 2,000,000 Soviet displaced
persons were found in western Germany among
the slave laborers released from custody by the
Allied armies.
FEBRUARY 10, 1946
215
Tlie German occupation of Hungary, Rumania,
and Bulgaria in 1944 resulted in the extension to
tliose countries of the pattern of Nazi persecution
of the Jews. Between March and October 1944
over 800,000 Hungarian Jews and those of other
nationalities who had fled to Hungary during
tlie war were deported either to slave labor in Ger-
many and Austria or to the concentration and ex-
termination camps in Poland. The techniques of
exjjropriation, lierding in ghettos, and deporta-
tions in boxcars to unknown destinations, de-
veloped in Poland and later in western Europe,
were applied in Hungary with a degree of speed
and efficiency that rivaled all previous efforts of
the Nazis directed against the Jew.s.
Germany's ever increasing need for manpower
during the war resulted in an eventual draft into
the Reich of S.,'-.nO,000 United Nations nationals
from the occupied countries of Europe. Included
in this total were some 2,000.000 prisoners of war.
Tlie status of a majority of these prisoners was
changed by various devices to that of forced la-
borers. In the first years of the war the different
national groups were treated witli varying degrees
of severity in employment, but toward the end of
the war all were forced to work abnormally long
hours, with inadecpiate food, under conditions
which resulted in death for many tliousands.
Counted among the 8,500,000 laborers were
2.000,000 French and equal numbers of Poles and
Russians. Over 800,000 laborers were drawn from
Italy, 500,000 each from Belgium and the Nether-
lands, approximately 300.000 from Yugoslavia,
and 250.000 from the three Baltic States.
As the Allied and Soviet armies advanced into
Germany, these slave laborers were released from
custody and freed to trek homeM'ard as best they
could. In the absence of transportation and shelter
they presented serious problems of care for the
armies, intent solely on rapid advance into Ger-
many. Many thousands reached their homes in
western Eui-ope on foot. After the collapse of the
German army, however, the Allied and Soviet
armies with the same drive and skill which char-
acterized their military effort immediately under-
took the task of repatriating these millions of des-
perate human beings. Within four months in the
summer and fall of 1945 over 5.500,000 were re-
turned to their home countries from western Ger-
many and Austria. There are 1,250,000 still cared
for in displaced-persons centers awaiting repatria-
tion. Practically all the western Europeans, So-
viet nationals, and Italians have been returned.
The Poles constitute the largest national group re-
maining, their repatriation having been delayed by
the large movement of Russians eastward and the
lack of adequate reception facilities in Poland last
summer.
Repatriation will be resumed and probably com-
pleted in the spring of 194fi. Only then will it
be possible to determine the numbers of the non-
repatriables who will be unable or unwilling to
return to their countries of origin. These will pre-
sent a problem for international action. The
United Nations Relief and Rehabilitation Admin-
istration is assisting the military in the operation
of displaced-persons centers in Germany, Austria,
and Italy, and the Intergovernmental Committee
on Refugees has before it the longer-term problem
of finding homes for those who will eventually
prove non-repatriable. International organization
for the care of these groups is currently under
discussion in committees of the United Nations now
in session in London. A British proposal that the
Economic and Social Council be asked to study the
existing international inachinery for the care of
refugees and displaced persons has the support of
the United States Delegation. It is expected that
the Economic and Social Coimcil will determine
the efficacy of present efforts in this direction and
make recommendations as to the manner in which
these efforts should be related to the United
Nations.
The Anglo-American Committee of Inquiry re-
cently appointed to study the problem of displaced
Jews is now conducting hearings in London and
will soon proceed to Germany and later to Pal-
estine. Its reconunendations on this important
segment of the problem of non-repatriables will be
made to the British and United States Govern-
ments in April.
Exj^erience with the problem of permanently
uprooted groups indicates that the task of finding
satisfactory solutions is not a simple one. It may
be expected that a proportion of those now re-
maining in the camps in Germany, Austria, and
Italy will find homes with relatives and friends
in other countries. To facilitate this process com-
munications will need to be reestablished with
Germany, and shipping and travel facilities will
need to be restored. For the remainder no single
solution will prove possible and no practical pro-
gram has yet been developed. Much will depend,
as I indicated earlier, on the revival of economic
216
DEPARTMENT OF STATE BULLETIN
activity throughout the world and the level of that
activity.
The displacement of Germans during and since
the war has been substantial. Relief workers
have estimated that over 21,000,000 Germans were
dispersed within Germany at the end of the war.
These included those evacuated from bombed
areas, Germans returned from the formerly oc-
cupied countries, whose flight in advance of the
retreating Gei'man armies was precipitate, and
tliose displaced by the dispersal of German in-
dustry. In recent months the flow of racial Ger-
mans from eastern European countries has been
gaining momentum. It is expected that between
6,500,000 and 8,000,000 Germans will return to
Germany during the first six months of 1946.
In the Far East the displacement of civilian
populations has been comparable in numbers to
that in Europe. In China no reliable estimate of
the movement westward from the coast has become
available. A total in excess of 20,000,000 is con-
sidered conservative. The China Overseas Com-
mission, charged with the return of Chinese to
their pre-war homes in overseas countries, has
registered 184,000 Chinese awaiting repatriation
in China.
The internal displacement of all nationalities in
Japan has been in excess of 12,000,000. Included
in this figure are 2,000,000 Korean laborers now
being re^Datriated to Koi-ea. The repatriation of
6,500,000 Japanese civilians from China, Man-
churia, Korea, Formosa, the former Japanese
Mandated Islands, and other areas in the East is
just beginning to get under way.
No claim is advanced as to the accuracy of the
figures presented in this review of the displace-
ments of populations precipitated by the wars in
Europe and the Far East. They have been gath-
ered from many sources and are subject to cor-
rection as further information becomes available.
They are presented for consideration without ob-
servations as to the implications for us in the
task ahead of building a world in which this sordid
record may not be repeated.
U. S.-U. K. FINANCIAL AGREEMENT— Co)i/i« wed from page 184.
penditiires abroad during the war. In the Finan-
cial Agreement the British Government has under-
taken to adjust and settle these obligations out of
resources other than the American credit and has
outlined its intentions with respect to their settle-
ment. Our concern in this connection is two-fold.
In the first place we want other countries which
are in a position to do so to grant assistance to the
United Kingdom within their means. Those
which hold large sterling balances can do so by
scaling them down. In the second place we want
to be certain that the liquidation of these balances
will not discriminate against American trade.
The Financial Agreement contains a specific
undertaking by the Government of the United
Kingdom that no such discrimination shall result
from these settlements.
The Financial Agreement also makes it possible
for the United Kingdom to give wholehearted
support to the Proposals for Expansion of World
Trade and Employment which the United States
has recently put forward as a basis for interna-
tional discussions by the United Nations. In the
Joint Statement on Commercial Policy published
at the same time as the Financial Agreement, the
United Kingdom has undertaken to support these
Proposals and to use its best endeavors in coopera-
tion with the United States to bring to a success-
ful conclusion international discussions based
upon them.
The implementation of the Financial Agree-
ment will be a great contribution to the estab-
lishment of a permanent state of peace and pros-
perity. We are all aware of the dangers inherent
in unchecked economic rivalry and economic war-
fare. These dangers can be eliminated by the firm
resolution of this nation and the United Kingdom
to carry forward the work which has been so
well begini.
The Financial Agreement transmitted herewith
means that instead of economic controversy be-
tween the two countries, the wise rules of the
Bretton Woods Agreements will be fully effective
much sooner than we believed possible when the
Congress enacted the Bretton Woods Agreements
Act. I urge that Congress act on the Financial
Agreement promptly.
Harrv S. Truman
The White House
January 30, 191,6
FEBRUARY 10, 1946
217
Protest by the Department of State
On AP and UP Action
STATEMENT BY ASSISTANT SECRETARY BENTON
The action of the United Press yesterday, how-
ever I'egrettable, was not an unexpected sequel to
tlie action of the Associated Press on January 16,
in view of the competitive jockeying for sales
position between the two organizations.
As the Government's representative, I have no
choice but to protest as vigorously as I can. My
objections can be summarized by three points :
First: I object to the dog-in-the-manger tactics.
I have asked the Associated Press and the United
Press to take responsibility themselves, either in-
dividually or cooperatively with each other and
the International News Service, for the prepara-
tion of the voice broadcasting to other countries
of the spot news about the United States. The
three agencies cooperated in supplying such news
during the early days of our domestic broadcast-
ing. The AP and UP now refuse to take respon-
sibility. Their attitude is, "We won't do the job
ourselves and we won't let you do it on behalf of
the people of the United States".
Second : The AP and UP are willing to sell
their news to foreign agencies who will use it in
short-wave broadcasting but are not willing to
supply the same service to their own Government.
They provide their news to the Russian Govern-
ment agency, Tass, to the British Broadcasting
Corporation, to Radio Rome, the Canadian Broad-
casting Corporation — or, in fact, to any other cus-
tomer except their own Government. Thus the
listener in Germany or Bulgaria or China can
listen to spot news about America, as furnished by
AP and UP when selected and relayed through
foreign agencies, but cannot listen to it directly
from "The Voice of America".
Third : What they saj' is not what they mean.
The real issue is not tlie "fear of propaganda"
which they claim. If the issue were "fear of prop-
aganda" the AP and UP would not have refused
our I'equest to take responsibility for the broad-
casting of the spot news. If the objection were
"fear of propaganda", Mr. McLean, the president
of the Associated Press, would not have ignored
my suggestion to appoint observers, drawn from
the Society of Newspaper Editors, to report on
the use the Government makes of the news.
If it were propaganda which the Government
broadcasts, I would not have asked Mr. McLean
to nominate members of his own board of directors
to come to Washington with jjower to act, or at
the very least with authority to study and report
our activities and aims to the AP board of direc-
tors. I so telegraphed Mr. McLean last Thurs-
day. To this suggestion also he has not replied.
The difference between my views and Mr. Mc-
Lean's has been reduced to an extremely narrow
field. In a statement he sent me dealing with
the State Department's overseas information pro-
gram, which he prepared for delivery at the North
Carolina Press Association dinner last Friday,
Mr. McLean said: "The whole information pro-
gram, consisting of nine points, includes exchange
of persons engaged in intellectual activities; the
maintenance of libraries of information abroad;
the distribution to diplomatic missions of texts
of official announcements; documentary material,
biographical sketches, and information about life
in America; photographs and films for non-com-
mercial use ; publication of the magazine America
for distribution in Russia; documentary films for
non-commercial showing to foreign audiences; the
development of small staffs in our missions in 62
countries to provide tactful, well-informed, and
capable personnel to carry out the program ; and
finally the operation, during 1947 at least, of
short-wave broadcasting covering virtually the
whole world."
"Almost the whole program has received gen-
erous and merited approval and support", con-
tinued Mr. McLean, "as have also efforts to ad-
vance the free exchange of news and information
The above statement was made on Jan. 28 and released
to the press on the same date. For other statements by
Mr. Benton on the AP action, see Bulletin of Jan. 27,
1946, p. 92.
218
DEPARTMENT OF STATE BULLETIN
through normal cliannels. It is only in the field
of news broadcasting by the Government that the
program has been seriously questioned."
I believe I have demonstrated that this one ob-
jection does not in fact spring from "fear of propa-
ganda''. Further no one who has studied the
short-wave voice broadcasts feels in actual fact
they are comjjetitive to the sale abroad of the
service of the AP, UP, and INS. Mr. McLean's
objection stems primarily from the competitive
rivalries between the wire services themselves, both
here and abroad.
The reputation of our three great wire services
abroad is a priceless national asset. The fact they
have maintained their independence of Govern-
ment influence is a fact in which all Americans
can take pride.
The idea that the Government, by using their
news service, as one more customer, would in-
fluence their news, or actually affect their ob-
jectivity, is manifestly absurd. I am as confident
that Congress would not permit it and that they
themselves would not stand for it as I am that the
State Department would never attempt it.
Cliaro;e of U.S. Sale of Arms
to Spain Denied
The Department of. State announced to the
press on January 29 that it has received numer-
ous inquiries as a result of the statement made by
Walter Winchell over the American Broadcasting
Company netwoik on January 20. Mr. Winchell
is quoted as saying:
"The following revelation, wliich I believe to
be true, is the most shocking I have ever I'epoi'ted.
The source is, of course, the foreign underground.
Two big American sliips believed to liave sailed
from Italy just docked at Barcelona, Spain.
These American ships were crowded with Amer-
ican arms, mainly machine-guns; they were al-
legedly sold to the Franco government of Spain —
not by Argentina, not by the Japanese — they were
sold, I am ashamed to state, by authorities of the
United States of America; playing with matclies
to get your boy killed in the third world war. In
the name of 13!) milliou Americans I demand a
Federal investigation of that charge."
The Department has carefully investigated the
charge and has received from Barcelona, Eome,
and Caserta categorical denials. A search of the
records at Caserta indicates: (1) that no sale of
arms to Spain has been authorized; (2) that no
transportation of arms to Spain has been author-
ized; (3) during hostilities no visits were made
from Italy to Spain by War Shipping Adminis-
tration merchant vessels; and (4) a search of the
records since V-E day shows that no United States
vessel carried shipments of arms to Spain from
Italy or elsewhere.
Reports from Rome state that the Foreign
Liquidation Commission representative there has
sold no such material to the Spanish Government
and knows nothing about any alleged shipment.
The Embassy at Rome checked other sources and
found no information on this matter which would
substantiate Mr. Winchell's charges.
The Consulate at Barcelona reports that the last
American ship to call at Barcelona was the Rich-
mond P. Hobson. It touched at Barcelona on
January 5 but discharged no cargo.
The only shipment of arms and ammunition to
Spain authorized by the United States Govern-
ment during the period 1939 to the present com-
prised one rifle and 200 cartridges which were sold
to a private individual.
Death of Irene B. Leach
STATEMENT BY THE SECRETARY OF STATE
[Releasi'il to the press February 1]
I was deeply grieved to hear of the death this
morning of Irene B. Leach, for nearly 24 years a
devoted member of our staff. Her loss will be
keenly felt by her colleagues here and especially
by tliose who worked with her on the Depart-
ment's publications.
Mrs. Leach is survived by her husband, Thomas
Leach, of 1315 Belmont Street NW, a son, Rob-
ert Frei. United States Army, her father, and
two brothers.
Mrs. Leach as Chief of the Printing and Bind-
ing Section in the Division of Research and Pub-
lication contributed faithfully to the develoi)meut
and success of the Department's jiublications pro-
gram and performed particularly outstanding
services to the Bui-lktin since its incej)tion.
International Organizations and Conferences
Calendar of Meetings
The Iliiiteil Xations :
General Assembly
London
Secui'itv CDiincil London
Bennuila
London .
London .
Montreal
Civil Aviation Conference
Council of Foreign Ministers: Meeting of r>eimties .
International Lal)or Organization ;
(."(inference of Delegates on Constitutional Questions
International Developments Works Committee . .
International Technical Committee of Aerial Legal Ex-
perts (CITEJA) : 14th Session Paris
Far Eastern Commission En route to Washington
Ititernational Cotton Study Group: Suhconunittee of the
International Advisory Committee Washington ....
North American Regional Broadcasting Engineering
Conference Washington ....
Council of the United Maritime Aiitliorlty London
International Sugar Council London
West Indian Conference St. Thomas. Virgin Is
lands (U. S. I
Extraordinary Meeting of the r>irectors of the Interna-
tional Meteorological Services (IMO) London
Regional Air Navigation Conference Dublin
International Monetary Fund and the International
Bank for Reconstruction and Development : Boards
of Governors Wilmington Island. Ga.
North .Vnierican Wildlife Conference New York
January 10 (<'ontinulng in session)
Januar.v 17 (contituiing In session)
January 15 (continuing in session)
January IS (continuing in .session)
January i!l (continuing in session)
Januai'y I'.S (continuing in session)
January 22 (continuing In session )
Session closed in Tokyo on Feb-
ruary 1
Febi-uary -t
Febiuary 4
F'elirnary 4
February 5
February 21
February 25-March 2
March 4
March 8
March 11-12
Activities and Developments
Bretton Woods Agreements. Tlie Depai'tiiteiit of
State released to the press on Jaiiiiarv '2S an an-
nouhceiiient that in accordance with the terms of
tlie Bretton Woods agreements, which have been
brought into force by the necessary number of sig-
natures, the Government of the United States has
issued invitations to the states members of the
International Monetary Fund and tlie Interna-
tional Bank for Keconstruction and Development
to attend the first meetings of the Boards of Gov-
ernors. The meetings will be held at Wilmington
Island, near Savannah, Ga.. on March 8, TJ-Ki, for
the purpose of establishing the two institutions.
The following states are members of the Fund and
of the Bank :
Belgium
Bolivia
Brazil
Cana<la
Chile
China
Colombia '
Costa Rica
Cuba
Czechoslovakia
Dominican Republic
Ecuador
Egypt
Ethiopia
France
Greece
Guatemala
Honduras
Iceland
India
Ii'an
Iiaq
Luxembourg
Mexico
The following
have observers in
Australia
El Salvador
Denmark
Haiti
Liberia
New Zealand
Netherlands
Norway
Paraguay
Peru
Philippine Commonwealth
Poland
Union of South Africa
United Kingdom
United States of America
Uruguay
Yugoslavia
countries have l)een invited to
attendance at these meetings.
Nicaragua
I'auania
Union of Soviet Socialist Re-
publics
Venezuela
The dates in the Calendar are as of Feb. 3.
' Colon)bla is a member of the Fund but is not .vet a
member of the Bank.
219
The Record of the Week
British Commonwealth
Occupation Force in Japan
SUMMARY OF AGREEMENT BETWEEN U. S.
AND AUSTRALIA
1. As a result of discussion between members
of the British Commonwealth, proposals for a
joint British Commonwealth Force to participate
in the occupation of Japan were agreed upon and
conveyed to the United States Government by the
Australian Government, acting on behalf of the
British Commonwealth Governments concerned.
2. Following recent representations in Washing-
ton by the Australian Minister for External Af-
fairs, Dr. H. V. Evatt, the United States Govern-
ment has now formally accepted the participation
of British Commonwealth forces in the occupa-
tion of Japan. Arrangement are now well ad-
vanced for the force to j^roceed on the following
basis.
3. The force is drawn from the United King-
dom, Australia, New Zealand and India. The
Connnander-in-Chief of the Force is Lieutenant
General J. Northcott, C. B., M. V. O., of the Aus-
tralian Military Forces. His headquarters are
fully integrated with representatives drawn from
each service and from each Commonwealth coun-
try contributing to the force. Air Commodore
F. M. Bladin, C. B. E., of the Royal Australian
Air Force, has been appointed Chief of Staff to
Lieutenant General Northcott.
4. The force comprises :-
(o) Force and base troops drawn from each
of the contributing countries.
(b) A land component, organised as a corps,
consisting of one British Indian division and two
independent brigade groups — one each from Aus-
tralia and New Zealand.
The above agreement was i-eleaseil simultaneously In
Canberra, Wellington, New Delhi, London, and Tokyo on
Jan. 31.
220
(c) An air component comprising squadrons
drawn from the Royal Air Force, the Royal Aus-
tralian Air Force, the Royal New Zealand Air
Force and the Royal Indian Air Force.
5. A squadron of the British Pacific fleet, which
includes ships of the Royal Navy, the Royal Aus-
tralian Navy and the Royal Indian Navy is sta-
tioned in Japanese waters under operational con-
trol of the Admiral commanding the detachment
of the United States Fleet.
6. The British Indian division is connnanded by
Major General D. T. Cowan, C. B., D. S. O., M. C,
Indian Army, and includes the Fifth Brigade of
the Second British Division and the 268th Indian
Infantry Brigade. The Australian Infantry
Brigade group includes the 34th Australian In-
fantry Brigade commanded by Brigadier R. H.
Nimmo. The Commander of New Zealand
Brigade, which is coming from Italy, is Briga-
dier K. L. Stewart, C. B. E., L. S. O. "
7. The Commander of the air component is
Air Vice Marshal C. A. Bouchier, C. B., C. B. E.,
D. F. C, Roj-al Air Force. His senior air staff' offi-
cer is Air Commodore I. D. McLaughlan, D. F. C,
Royal Australian Air Force. The air component
includes the 81.st Australian Fighter Wing of three
Mustang Fighter Squadrons; numbers 11 and 17
Spitfire Squadrons, and number 96 Medium
Transport Squadron, Royal Air Force; number 4
Spitfire Squadron, Royal Indian Air Force; and
number 14 Corsair Squadron, Royal New Zealand
Air Force.
8. The British Commonwealth Occupation
Force (BCOF) will form part of the occupation
forces in Japan under the supreme command of
General Douglas MacArthur, Supreme Com-
mander for the Allied Powers (SCAP). He has
assigned the land component to the general op-
erational control of the Commanding General, 8th
United States Army, who is in military control
of the whole area of Japan. The air component
has been assigned to the general operational con-
trol of tlie Commandinsr General, Pacific Air
FEBRUARY 10, 1946
221
Coinnumd, United States Army (PAC, USA).
Lieutenant General Northcott, as Commander-in-
Chief BCOF, is entirely responsible for the main-
tenance and administration of the British Com-
monwealth Occupation Force as a whole. He has
direct access to General MacArthur on matters of
major policy affecting operational commitments
of the force. On policy and administrative mat-
ters aliecting the force, the Connnander-in-Chief
is responsible to the British Commonwealth Gov-
ernments concerned through a British Common-
wealth organization set up in Melbourne and
known as the "Joint Chiefs of Staff in Australia".
Their instructions to the Commander-in-Chief
BCOF will be issued by the Australian Chiefs of
Staff. The Joint Chiefs of Staff in Australia
( JCOSA) comprise the Australian Chiefs of Staff
and representatives of Chiefs of Staff in the
United Kingdom and New Zealand and of the
Commander-in-Chief in India. This organiza-
tion is fully associated with Australian Joint
Service machinery. The Commander-in-Chief
BCOF has the right of direct communication with
the Joint Chiefs of Staff in Australia on admin-
istrative matters affecting the force. On mat-
ters of governmental concern affecting the policy
and operations of BCOF he will communicate
through JCOSA to the Australian Government,
which acts as the representative of the other Com-
monwealth Governments concerned.
9. The BCOF will be initially located in the
Hiroshima Prefecture including the cities of Kure
and Fukuyama. It will be responsible for the
demilitarisation and disposal of Japanese instal-
lations and armaments. It will exercise military
control of the area but will not be responsible for
its military government, which remains the re-
sponsibility of United States agencies. The
BCOF area will not constitute a national zone.
The BCOF may be called upon to conduct mili-
tary operations outside its normally allocated area.
Wlien air support for the land component of the
BCOF is required, this will be provided primarily
by the BCOF air component. Kure will be the
base port for BCOF which will be responsible for
the working of the entire port. The Kure Naval
Yard will remain under United States Naval
control.
10. Provision is being made for the BCOF to
be rejiresented in the Tokyo Prefecture by a de-
tachment which probably will be of battalion
strength. This detachment will be drawn in turn
from each national component in the force.
11. The British Commonwealth Occupation
force may be withdrawn wholly or in part by
agreement between the United States Government
and the Commonwealth Governments concerned
or upon six months' notice by either party. It
has been agreed also that progressive reduction
in the strength of the force will be made from time
to time in conformity with progressive reductions
which may be made in the strength of United
States occupation forces in Japan.
12. The Australian Services Mission, hitherto
located in Tokyo, has been transformed into an
advanced echelon of Headquarters BCOF with
an addition of officers from other Commonwealth
components. For the present it remains in the
Tokyo area to facilitate liaison with General
MacArthur's headquarters.
13. Details of the move to Japan of the var-
ious components of BCOF cannot yet be an-
nounced but detailed planning is now in progress
on the following basis: —
(a) Naval port parties for the working of Kure
port to arrive in the first week of February.
(b) Leading elements of the Australian com-
ponent, including an airfield construction squad-
ron, to arrive in the third week of February.
(c) Leading elements of the British Indian Di-
vision and the advanced parties of the British
Indian air component to arrive about the first of
March.
(d) Leading elements of the New Zealand Bri-
gade, which is moving from Italy, to arrive about
March 23.
{End of agreement svmvmary)
[Following portion released in Washington and.
Tokyo only)
General of the Army Douglas MacArthur, Su-
preme Commander for the Allied Powers, made
the following statement concerning the employ-
ment of British Commonwealth Forces in the
occupation of Japan:
"The present Occupation Forces in Japan ex-
tend the heartiest possible welcome to the British
Commonwealth Forces who are about to share with
them the arduous and difficult duties which are
involved. Their presence will materially broaden
the base along international lines of a burden
which up to this time has, of necessity, been carried
222
DEPARTMENT OF STATE BULLETIN
to a lar<re extent unilaterally by United States
Forces and cannot fail to be of over-all beneficial
effect. It will enable a diniinution in our own
strength, and will thereby bring welcome relief
to many individuals. The Australian contingent
served under my personal command with bril-
liant honor to itself during the long and arduous
campaigns on the road back, and I take a special
personal pride in again being associated with it.
The reception of the entire force will be of the
warmest.''
When the exact composition and time of ar-
rival of the British Commonwealth Force are
known to General MacArthur he will determine
the number and schedule of withdrawal of Ameri-
can troops from his command.
The participation of British Connnonwealth
forces in the occupation of Japan is in line with
the policy made public by the President on Sep-
tember 22 which stated that the "participation of
the forces of other nations that have taken a lead-
ing part in the war against Japan will be wel-
comed and expected".
In accordance with this declaration, invitations
were extended also to the Governments of China
and the Union of Soviet Socialist Republics to
send troops to participate in the occupation. The
Chinese Government has informed this Govern-
ment that, while it is. willing to provide a con-
tingent of troops, it is not in a position to do
so at the jjresent time. The Union of Soviet
Socialist Republics has not accepted the invita-
tion to participate.
U.S. Government Takes Serious
View of Peron's Charges
[Released to the press February 1]
Instruction trdiisiiiltted to the American Charge
(V Affaires at Buenos Aires on January 31 :
Kluckhohn in front-page article Xew York
Thiws this morning, Buenos Aires dateline, Janu-
ary 30, quotes Peron as follows:
"The candidate, in an interview witli th's cor-
respondent, insisted that it was the oi)position
which was seeking to break up the elections and
that the police constantly were picking up arms
that had been smuggled across the Plata River.
He expressed the firm belief that the United
States Embassy was involved in this counter-
movement."
You are instructed to go inuuediately to the
Foreign Minister and leave with him an aide-
memoire quoting this new-spaper account and stat-
ing that because of Peron's former official position
and his continued identification by public opinion
with Argentine Government this Government takes
a serious view of his charges against the United
States Embassy. The aide-memoire should in-
quire whether the Argentine Government asso-
ciates itself with such charges and should state
that if it does not this Government would expect
the Argentine Government j^ublicly to repudiate
them.
McDIARMID— ConYinMe<i from page 212.
3. protection of minorities
4. prevention of discrimination on grounds of
race, .sex, language, or religion
5. any matters within the field of human rights
considered likely to impair the general welfare or
friendly relations among members.
In general, the Commission is to assist the Eco-
nomic and Social Council to carry out its responsi-
bility under the Charter to promote human rights.
The studies and recommendations of the Commis-
sion would be designed to "encourage the accept-
ance of higher standards in this field and help to
check and eliminate discrimination and other
abuses".
If these recommendations are accejated by the
General Assembly in something approaching this
present form, the United Nations will be equipped
with the machinery to make its powers of report
and reconunendation contribute to the promotion
of human rights.
As matters stand now. in the field of human
rights the Charter is an affirmation of faith and a
bold experiment. For the first time, it embodies
in a general international agreement the j^rinciple
that there are human rights so basic and so uni-
versal that they are not only the heritage of all
men and the responsibility of all governments but
also tlie concern of an international organization
to jjreserve peace and security. It is a recognition
by a majority of the states of the world that denial
of human rights is not a matter of local interest or
of humanitarian concern but a potential cause of
that scourge of wai- which the United Nations have
banded together to root out of inteiiuitional rela-
tions.
FEBRUARY 10, 1946
223
Lend-Lease Operations:
to Congress
T(/ the Conffres.<< of the United >Sfafe.<< of Amerkn:
I am trunsniitting herewith the 21st report of
operations under the Lend-Lease Act for the pe-
liod ending September 30, 1945.
Until VJ-day, lend-lease and reverse lend-lease
operated to speed the redeployment of our troops
from Europe and to insure the final victor_v over
J:ij)an. This report primarily describes the ex-
tent of aid rendered under the Lend-Lease Act
prior to the cessation of hostilities. The sur-
render of Japan signaled the termination of lend-
lease as a weapon for victory and prompt steps
were taiien by this Government to insure a rapid
but oiderly reduction of lend-lease exjjenditures
and to bring to a close the employment of lend-
lease procedures in supplying essential war needs
to our allies.
Concurrently, negotiations have begun with
many of the lend-lease governments looking to-
ward a final settlement of the lend-lease and re-
verse lend-lease accounts. At the pi-esent time,
such lend-lease negotiations have been success-
President's Letter
[Released to the press by the White House January 31 J
fully concluded with the United Kingdom, the
largest single reciinent of lend-lease supplies.
The measures taken to wind up and settle the lend-
lease program are outlined only briefly in this re-
port but will be described in full in subsequent
reports.
The Master Agreements that have been con-
cluded with the various lend-lease governments
contain the pledge that the terms and conditions
of tiie lend-lease settlements are to be "such as not
to burden commerce between the two countries,
but to promote mutually advantageous economic
relations between them and the betterment of
world-wide economic relations."' In the process
of terminating lend-lease and in carrying on our
negotiations for final settlements with the various
governments, these principles of Article VII will
be before us as a reminder of the goal which this
Government must constantly seek.
Harry S. Truman.
The White House,
January 31, 101,6.
Panama-U.S. Cooperative Fellowship Program
[Released to the press January 20]
The Department of State announced last July ^
that a Panama-United States Fellowship Pro-
gram would be undertaken as the result of discus-
sions between the Government of Panama and tlie
Government of the United States. The selection
of the fellowship recipients has now been made
by a I'anama-United States Fellowship and
Scholarship Selection Committee appointed by
agreement between the two Governments. The
expenses of these fellowships will be shared by
the Panamanian and United States Governments.
The names of these students, who have been placed
at institutions of higher learning in this country
by the Institute of International Education,
follow :
Name
Teresina Patiflo
Alberto Alemdn Cale
Juan M. Mdndez
Erasnio E. Escobar
Federico A. Veldsquez
Teodoro E. M^ndez
Giiillermo Amaya Barrios
Victor G6mez
Field
Tuberculosis
Public finance and accounting
Juvenile delinciuency
Civil service
Organization of vocational schools
Agricultural extension work
Social security
Organization of vocational schools
Institution
University of Pennsylvania
University of Southern California
Indiana University
Syracuse University
Ohio State University
Arkansas Polytechnic College
Practical training with the Social Security
Board
Under the auspices of the Inter-American
Educational Foundation, Incorporated.
' Bulletin of July 22, 19-15, p. 120.
224
DEPARTMENT OF STATE BULLETIN
UNRRA Shipments for 1945
to Liberated Areas
The following table, released to the press by
UNRKA on January 23, shows shipments to coun-
tries receiving UNRRA i-elief: cumulative
through June 30, 1945 ; June 30, 1945 through De-
cember 31, 1945 ; and cumulative through Decem-
ber 31, 1945 :
Supplies Shipped bij UNRRA lo Liberated Areas
(Gross long tons)
Cumulative Cumulative
shipments Shipments shipments
through June 30 to through
Country of destination June 30, 1946 Dec. 31, 1945 Dec. 31, 1945
Albania 10,100 57,723 67,823
Byelorussian S.S.R 22, 226 22, 226
China 9 263,940 263,949
Czechoslovakia 50,950 354,116 405,066
Dodecanese Islands 1, 588 1, 588
Greece 709, 024 1, 047, 169 1, 756, 193
Italy 73,851 60,142 133,993
Poland 66, 579 284, 413 350, 992
Ukrainian S.S.R 44,099 44,099
Yugoslavia 185,970 784,143 970,113
Other UNRRA Op-
erations 4, 510 13, 470 17, 980
Total 1,100,993 2,933,029 4,034,022
Rubber Allocations for U. S.
From the Far East
[Released to the press January 28]
Price negotiations have been concluded whereby
the Reconstruction Finance Corporation through
its subsidiary, the Rubber Development Corpora-
tion, will purchase all natural rubber allocated to
the United States by the Combined Raw Mate-
rials Board or its successor, the Combined Rubber
Committee, from British, Netherland, and French
areas in the Far East at a price of 2014 cents (U.S.
currency) a pound for standard top grades, de-
livered f . o. b. ocean-going steamer at Far Eastern
port. This agreement covers the period Septem-
ber 2, 1945 (V-J Day) through June 30, 1946 in
the case of the Netherland and French areas and
the period September 2, 1945 through March 31,
1946 in the case of the United Kingdom, from
whose areas substantial quantities of rubber have
already been shipped.
Arthur C. Bunce To Leave
for Korea
[Released to the press February 2]
The Department of State announces that
Arthur C. Bunce will leave on February 2 for
Korea to serve as Economic and Agricultural Ad-
viser to General Hodge, Commanding General of
the United States Forces in Korea. He is on
leave from his post as Chief Agricultural Econo-
mist on the staff of the Board of Governors of the
Federal Reserve System.
Mr. Bunce lived in Korea from 1928 to 1934
during which time he was employed by the In-
ternational Committee of the Y.M.C.A. to work
on problems of raising the level of living of the
Korean farmers.
Accompanying Mr. Bunce as members of his
staff are Henry D. Appenzeller, Ben T. Moore,
Gordon B. Strong, Maxwell E. Becker, Robert A.
Kinney, Edwin E. Braden, Eugene V. Prostov,
John K. Rose, and Thelma Williams, all of the
Department of State.
Resignation of Isador Lubin
The President accepted on January 25 the resig-
nation of Isador Lubin as United States Com-
missioner of Labor Statistics and as Associate
United States Representative on the Allied Com-
mission on Reparations, effective January 31.
Confirmations
The Senate contirnaed on January 31, 1946 the nomi-
nation of Vice Admiral Alan G. Kirk to be Ambassador
Extraoi'diuary and Plenipotentiary of the United 'States
of America to Belgium and to serve concurrently and
without additional compensation as Envoy Extraordinary
and Minister Plenipotentiary of the United States of
America to Luxembourg.
Consular Offices
The American Consulate at Turin, Italy, was reestab-
lished on .lanuary 27, 1946.
PUBLISHED WITH APPROVAL OF DIRECTOR OF BUREAU OF THE BUDGET
U.S GOVERNMENT PRINTING OFFICE; 1946
THE DEPARTMENT OF STATE
VOL. XIV. NO. U6
FEHRUARY 17. 1946
General Assembly of the United Nations
REPORT FROM LONDON
Limitation of the Prod notion of Opium
EXCHANGE OF NOTES BETWEEN U.S. AND U.K.
Cultural Centers in the Other American Republics
Article by DOROTHY GREENE and SHERLY GOODMAN ESMAN
^©NT o^
For complete contents
see inside cover
THE DEPARTMENT OF STATE
BULLETIN
Vol. XIV •No. 346 •
Publication 2 t71
February 17, 1946
For sale by the Superintendent of Documents
U. S. Government Printing Office
WaBhington25, D. C.
Subscription:
52 issuee, 83.50; single copy, 10 cents
Special offer: 13 weeks for $1.00
(renewable only on yearly baeis)
The Department of State BULLETIN,
a weekly publication compiled and
edited in the Division of Research and
Publication, Office of Public Affairs,
provides the public and interested
agencies of the Government uith
information on developments in the
field of foreign relations and on the
uork of the Department of State and
the Foreign Service. The BULLETIIX
includes press releases on foreign
policy issued by the White House and
the Department, and statements and
addresses made by the President and
by the Secretary of Slate and other
officers of the Department, as uell as
special articles on various phases of
international affairs and thefunctions
of the Department. Information con-
cerning treaties and international
agreements touhich the United States
is or may become a party and treaties
of general international interest is
included.
Publications of the DeparlFuent, cu-
mulative lists of uhich are published
at the end of each quarter, as well as
legislative material in thefield of inter-
national relations, are listed currently.
Contents
Page
Cultural Centers ia the Other American Republics:
Article by Dorothy Greene and Sherly Goodman
Esman 227
General Assembly of the United Nations: Report
From London to the Office of Public AfTairs,
Department of State -. . . 233
*President Transmits Protocol of Sugar Agreement . 236
Limitation of the Production of Oi)ium: Exchange of
Notes Between the Governments of the United
States and the LTnited Kingdom 237
International Organizations and Conferences
Calendar of Meetings 245
The Record of the Week
World Food Crisis: Statement by the President 246
Food Consumption in European Countries 248
Fascism on Trial at Niirnberg: A Radio Broadcast 250
Recognition of Rumanian Government 256
U.S. Representative on Preparatory Commission of
UNESCO " 257
Election of Green H. Hackworth as Judge of International
Court 258
Plans for Army-Navy-State College 259
The Proclaimed List 259
New York Publishers Endorse Foreign Information Program . 260
Journalists To Be Guests of Virginia Press Association . . . 260
Resumption of Private Trade With Italy 261
Prosecution of War Criminals 261
Discussion on Customs Procedure 261
Issuance of Death Certificates by Czecho.slovakia 262
Appointment of U.S. Representatives to Monetary Fund and
International Bank 262
*Interim Air Rights with Belgium 263
Visit of Chinese Playwright 263
Visit of Chinese Writer 263
Cuban Educator Accepts Visiting Professorship at Howard
University 263
Consular Ofiices 263
Presidential Authority for the Review of Censorship Files . . 264
Publication of Anglo-American Caribbean Commission . . . 264
The Congress 264
•Treaty Information.
rtiHil
191346
Cultural Centers
in the Other American Republics
Article by DOROTHY GREENE and SHERLY GOODMAN ESMAN
AT THE CLOSING SESSION of the Sail Francisco
. conference President Truman told the as-
sembled delegates that "we must set up an effective
agency for constant and thorough interchange of
thought and ideas".
One such effective agency for the type of inter-
cliange of which the President spoke is already
well established on a hemisphere basis — tlie cul-
tural-center idea, which has fanned out into a net-
work covering South and Central America, includ-
ing Mexico, and the Caribbean area.
During the war years the peoples of the Western
Hemisphere, removed from the scene of conflict,
were able to continue and broaden avenues of un-
derstanding through scientific and cultural ex-
changes. In each of the other American republics,
cultural centers were founded by nationals of the
country and resident American citizens who were
moved by a spontaneous desire for an organiza-
tion which would express mutual good-will and
increase understanding of their different ways of
life.
Development
The founders became the nucleus of a member-
ship that included the outstanding intellectual
leaders of each country. Under the auspices of
these interested leaders, suitable quarters were se-
lected for the newly conceived centers and a cul-
tural-cooperation program was launched.
In the course of developing the new centers it
became obvious to the members that their effective-
ness was limited by the absence of trained English
instructors and trained administrative personnel
and by the difficulties encountered in obtaining
books and cultural materials from the United
States. Through the American embassies and
consulates requests were made, first to the Office
of the Coordinator of Inter- American Affairs and
then, after July 1943, to the Department of State,
for assistance in personnel and materials. Today
the United States Government, througli the De-
partment of State, assists in the maintenance of
27 independent and 20 branch cultural centers in
the other American republics : it pays the salaries
of 20 directors and 27 American teachers of Eng-
lish in the centers, amounting to $110,000; it sup-
plies them annually with almost $50,000 worth of
American cultural materials ; it pays about 20 per-
cent ($42,700) of their local operating expenses.
Tlie other SO percent is raised locallj' by the insti-
tutes as contributions, membership dues, and class
fees.
These centers serve as important channels for
scientific and cultural interchange between the
l^eoi^le of tlie United States and the people of the
other American republics. They are meeting-
places where Americans and local residents can
become acquainted in a friendly informal atmos-
phere, where American citizens can learn Spanish
and Portuguese and the local citizens can learn
English. As host to the best in the national cul-
tures, the centers provide evidence of American
appreciation of the culture of other countries;
as information hubs, they aid in the creation of
an enlightened and cordial public opinion, based
ca\ familiarity with the intellectual aspects of
American life, as a complement to the already
wide-spread kn(jwledge of the material develop-
ment of the United States.
Before the war eight centers were in existence
in major capitals; eight more were organized in
1942 and six in 1943 and 1944. During 1945 ur-
gent requests from the field resulted in the pro-
gram's being expanded to lend assistance to new
Miss Greene and Mrs. Esman are Divisional Assistants
in the Division of Libraries and Institutes, Office of Inter-
national Information and Cultural Affairs, Department of
State.
227
228
DEPARTMENT OF STATE BULLETIN
independent centers in La Paz, Bolivia ; San Jose,
Costa Rica; Gnateniala, (luatemala; Medellin.
Colombia; and Cochabamba, Bolivia. English-
teaching programs were fostered in Ciudad Trn-
jillo. Dominican Republic; Managua, Nicaragua;
Montevideo, Uruguay; Barranquilla, Colombia;
and Cap Haitien, Haiti. New branch centers were
aided in Hlumenau, Joinville, and Itajai, Brazil;
Teniuco, Valdivia. and Valparaiso, Chile; and
Ambato, Guaya(inil, Riobamba, and Cuenca,
Ecuador.
A typical large center, such as that at Bogota,
employs a director re({uested from the United
States who carries out the decisions of the center's
elected board of dii'cctors according to this Gov-
ermuent's policy in the cultural-cooperation field.
Under his direction are five American teachers of
English who provide expert instruction to stu-
dents in the center and first-hand infoinnition on
past and present American life. Between 10 and
15 more teachers of English and Portuguese or
Spanish are employed locally by the center, some
of whom are resident American citizens and some
local nationals. Each center employs a small ad-
ministrative staff.
In general the physical plant of the center is an
attractively furnished building located in the cen-
tral business section of its host city; it contains
about 10 cla.ssrooms, a large auditorium, a well-
stocked libi'ary and I'eading-room. several offices, a
comfortable lounge, and an inviting tearoom.
Outside are well-planned patios and gardens.
Activities
English-Language Classes
The main activity of each center is the teaching
of English to nationals and Spanish or Portuguese
to Ameiican resitlcnts. Classes are held in the
evening and are usually divided intct elementary,
intermediate, and advanced groups. For advanced
students special conversation classes are organized,
and courses ai-e offered in the literature and history
of the United States. Student bodies, which range
in size from oOO to 1,500, include representatives
of almost every jH-ofession : doctors, dentists, law-
yers, teachers, university students, housewives, of-
fice workers, government employees, and even
cabinet ministers. Total student enrollment has
' For an ai'ticle entitled "English Is Also a Foreign Lan-
guage" by Harry H. ricrsoii, see Buu.ETrN of Jlar. IS,
1945, p. 453.
increased from 12,000 in July UnS to 17,000 in
July 1!)44 and to :^0,0t)() in July 11)45, with resulting
increase in income from class fees.
The demand for English courses has been so
great that in Brazil the Sao Paulo Institute found
it necessary to extend the center's services to out-
lying districts. In June 1945 Dr. Josejjh Privi-
tera, director of courses of the Uniao Cultural
Brasil - Estados Unidos. Sao Paulo, assisted in the
opening of three English classes in the cultural in-
stitute at Sorocaba. The classes, which meet once
a week, are taught by an instructor from the Uniao
who makes the trip for that puri)ose. Similar ar-
rangements are being worked out for Piracicaba,
and ])lans have been set up to provide supervision
in English teaching for Sao Joao de Boa Vista.
Other classes which have ])roved to be of great
value to the center students are those held in com-
mercial subjects, which consist of shorthand in
Spanish and English, typing, and commercial
English.
A i)ractical demonstration of increasing interest
in the English language was the commencement
ceremony held in May 1945 in the Blue Room of
the National Palace at Managua, at which the
Nicaraguan Minister of Education awarded 250
certificates. This nundxu' was in contrast to tlie
7-2 awarded in 1944.
Of particular interest during the war years in
the field of language activities were the evening
|)rograms of the Instituto Brasil - Estados Unidos
in Fortaleza, where American soldiers and sailors
from nearby bases and Brazilian members of a
center exchanged English lessons and American
ideas for Portuguese lessons and Brazilian ideas.
A'eH' Language Texts
The value of the centers' classes can be found in
more than the individual student's mastery of
English as spoken in the United States. Instruc-
tors at the centers are developing new methods
in the field of teaching English as a foreign lan-
guage. Several language texts have appeared,
largely as a result of the practical experience in
this field.'
From the Instituto Cultural Peruano-Norte-
americano at Lima in 1945 came three books writ-
ten with the practical appi'oach of progressive
education in the LTnited States: Second Year
Enylifih^ by Miss Hazel M. Messimore, formerly a
teacher at this institute; Third Year English, in-
FEBRUARY 17, \9i6
229
CUITURU mWM OTHER JiMERICtN REPUBLICS as'ofxjune m
JOINTU JPEmEO iND MMIiJAmV^V lOWl GROUPS liNO U.S. NMlOHUS
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THE CITltEWS, 0/ EACH COUMTR^
*FI1IIHDEB IH HSWHEAR IW&
tr(i(lufiii<>' commercial language, by Dr. Pies Har-
per, administrative .secretary of the Lima insti-
tute; and Fourth Year English, including a wide
selection of English-language literature, by I>r.
Esther J. Crooks, now teaching English at Curi-
tiba. These complete the series of English texts
for secondary schools which was initiated in 104-t
with the publication of Dr. Crook's book, First
Year English.
Primer Lihro de Inglfs. consisting of 2-t brief
lessons, is the product of the Centro Ecuatoriano-
Norteamericano de Relaciones Culturales in Quito
and is published by Editorial Colon of that city.
Each lesson, including vocabulary, rules of gram-
mar, translation exercises, and written exercises,
is designed to be supi)lemented with extensive
oral classwork.
From Caracas, Venezuela, comes Ingh's Mod-
rrno, a short intensive pamphlet in beginning
English, by Dr. John (i. Varner, executive secre-
tary of the Centro Venezolano- Americano, and Dr.
Jeannette J. Varner, professoi' of English there.
As supplementary material, the Department of
State has authorized, for distrilnition for class use
230
DEPARTMENT OF STATE BULLETIN
in the English-teaching programs, a special edi-
tion of 5,000 copies of Ingles Prdctico, an English
text for Spanish-speaking students written by
James Paul Stoakes while he was a member of the
staff of the Centro Colombo-Americano at Bogota.
An interesting example of the popularized tech-
nical works so much needed in the bilingual field
is Leciuras en ingles para mt'dicos y eiifermerai^^
published by Ediciones Selca, Bogota, Colombia.
The authors are Charles N. Staubach, assistant
professor of Spanish, University of Michigan, and
visiting professor of English, Universidad Na-
cional de Colombia, and Arturo Serrano M., pro-
fessor of English at the Escuela Nacional Superior
de Enfermeras and professor of English and
Spanish at the Centro Colombo-Americano,
Bogota.
The Regions of the United States consists of five
lectures prepared by the staff of the Centro
Colombo-Americano, with introductory papers in
Spanish by Roberto Garcia Pena and Forney A.
Rankin, Director of Information for Colombia
of the Office of Inter- American Affairs. The book
is a joint publication of the Office of Inter-Ameri- -
can Affairs and the center. Intended as geographic
orientation material, the lectures, in simple Eng-
lish, embrace the Southern States, New England,
the Middle Atlantic States, the Middle West, and
the West.
Fundamentos de'la conversacion inglesa (2d ed.
Editorial ABC, Bogota), by Frederick Sparks
Stimson of the Academia Inter-Americana at
Medellin, Colombia, presents the basic essentials
of Enelish oranunar in 25 lessons. The book em-
ploys both English and Spanish with an abundance
of simple drill materials given in both languages.
Seminars in the Teaching of English
Successful summer English seminars for
teachers in the other American republics have
convinced center directors of the need for con-
tinuous expert instruction for Spanish- and Portu-
guese-speaking teachers in language and method-
ology. Among the most successful of the English-
teaching seminars held at centers during the
school-vacati(m period were those of the institutes
in Bogota, Colombia; Lima, Peru; Quito, Ecua-
dor; and Rio de Janeiro and Sao Paulo, Brazil.
Through the United States Office of Education
and the Office of Inter-American Affairs, the two
outstanding participants in each of the courses
at these five centers were awarded travel grants
for a period of study and practical experience in
the United States.
Arrangements were made for each of these
teacliers to conduct a course in language teaching
in high schools and experimental schools in vari-
ous parts of the United States. Upon completion
of their teaching, the ten gathered at the Univer-
sity of Indiana for a six weeks' course in English-
teaching techniques and methods, following which
they spent two Aveeks visiting New York City,
Boston, and Washington. Several other centers
held highly successful English-teaching programs
during the vacation period.
The first Congress of Paraguayan Teachers of
English was held at the Centro Paraguayo-
Americano in Asuncion from December 11 to 16,
1944. At this meeting a program of lectures,
demonstration classes, and discussions, was held
undei' the direction of Administrative Secretary
Haven Hensler. A six weeks' summer course was
offered from December 18, 1944 to January 26,
1945 at the Instituto Chileno-Norteamericano in
Concepcion, Chile. In Montevideo, Uruguay, Dr.
Albert B. Franklin, American Cultural Relations
Attache, directed an English-teaching seminar at
the Biblioteca Artigas-Washington from January
22 to February 15, 1945. One outgrowth of Dr.
Franklin's course was the formation of the Asocia-
cion Uruguaya de Professores de Ingles.
Typical of the year-round courses available to
national teachers of English which are being initi-
ated in many institutes is the class opened during
the summer of 1945 at the Centro Cultural Para-
guayo-Americano. Dr. Juan Dario Quiroz. Para-
guayan Minister of Education, himself a student
at the center, gave his support to the organization
of the new class by calling for an explanatory ses-
sion an official meeting of all Asuncion teachers
of English.
These seminars, which supplement the regular
English-teaching functions of tlie centers, have
brought about tiie exchange of new ideas and
methods of teaching. The Centro Venezolano-
Americano in Caracas, Venezuela, is currently
using a series of special vocabularies to accompany
Walt Disney's animated films and other motion
pictures. Slide projectors, viewmasters, and song
and speech records are being integrated with regu-
lar classwork, and it is planned to organize a spe-
cial class whicii will utilize these methods only.
In addition to increasing the effectiveness of Eng-
lisli-teaching in the other American republics, the
FEBRUARY 17, 1946
231
seminars have benefited professionally the local
English teachers.
The certificates issued as evidence of the success-
ful completion of the summer school in the Centre
Cultural Inter-Americano at Curitiba, Brazil,
have aided the lioklers in securing teaching posi-
tions. The plan inaugurated at the Sao Paulo
center, to award certificates on the completion of a
six-year program of studies, of which the first
four years are devoted to the study of the English
language and the last two to the study of American
life and literature, will probably have the same
effect.
In Rosario, Argentina, a competitive contest was
held to choose teachers for the new department of
English courses at the institute. Within two days
after the announcement of the contest in the local
papers, 25 candidates had applied, and by the close
of the allotted period a total of 46 had indicated
their interest. A jury then interviewed the candi-
dates and made a preliminary selection of 10, who
were asked to prepare themselves to teach a trial
class. One candidate droiDped out, and the re-
maining nine were rated according to their teach-
ing ability as demonstrated in the trial classes.
Eight were hired.
Center Libraries
Serving the students of the center and the com-
munity as well, the center libraries have become an
important part of the cultural-cooperation pro-
gram. The library of a cultural center strives to
be a well-rounded library, containing representa-
tive American literature in the humanities and
social sciences, as well as those reference and
technical works which may prove to be useful to
the particidar community. Each represents also
an attempt to establish in a South American set-
ting an American public library in miniature.
When it is established, each library is furnished
with a small basic collection of standard American
works. This collection is augmented with packets
of current materials sent periodically from the
State Department, locally purchased translations
into Spanisii and Portuguese of American works,
and gifts provided through the duplicate collection
of the Library of Congress. The collections in the
larger center libraries contain about 5,000 books
which circulate freely each month to some 2,000
readers of all ages.
The organization of the center library is being
perfected so that it may serve as a laboratory for
the study of library economy and techniques in the
United States. Each center library is organized
on the basis of the Dewey Decimal System; the
books are well arranged and cared for, in some
cases by young local nationals who have had train-
ing in-American library schools. Occasional sum-
mer seminars are held by the center librarians to
introduce American library methods to local libra-
rians. A technical library expert from the United
States travels from center to center, organizing
the collections and suggesting improvements in
their administration in order to meet in the best
manner the needs of the various countries. The
library of the center in many cases is the first
example in the community of a fi'ee circulating
library.
Other Activities
The social activities which the cultural centers
provide are an important part of the program,
though their benefits cannot easily be evaluated.
At Concepcion the Instituto Chileno-Norteameri-
cano has become a meeting-place for students at-
tending the university in that city. This devel-
opment has come about through the initiative of
the students themselves, who gather there par-
ticularly on the weekends to participate in the
center's activities, to read, listen to tlie radio, and
meet their friends. In Bahia, Brazil, a volleyball
court and basketball court are being built on the
grounds as a gift from the city government — evi-
dence of the center's popularity.
In some of the centers such as the Instituto
Brasil - Estados Unidos de Ceara at Fortaleza the
program includes the publication of a monthly
news bulletin of information on the institute's
activities. In another case the radio is being used
to disseminate such information. The committee
on publicity of the Rio institute has begun a
weekly broadcast on Thursday evenings at 10
o'clock over the Ministry of Education station.
This broadcast consists of a talk and announce-
ments of the institute's activities for the coming
week. So far the series has included : A talk on
the broader aspects of cultural relations with the
United States by Afranio Peixoto, president of
the institute; a history of the institute by Jose
Nabuco, vice president; a description of Thanks-
giving Day by Mrs. Joseph Piazza, board mem-
ber ; a talk on the institute library by Rex Craw-
ford, American Cultural-Relations Attache; a
comparison of the peoples of the United States
232
DEPARTMENT OF STATE BULLETIN
and Hispanic Aniei-ioa by the Chilean poet, Gabri-
ehi Mistral; and an appeal for a united America
by Marico de Millo P'ranco Alves, mayor of Petrop-
olis and a graduate of the Massachusetts Insti-
tute of Technology.
Lectures in English, Spanish, or Portuguese on
subjects of special interest to local audiences are
given at all the centers on an average of once a
week. Visiting American professors give series
of lectures in the form of university extension
courses, which in some cases lead to a certificate
from a local university. Outstanding intellectual
leaders are invited regularlj' to discuss a wide
variety of topics. Institute staff members often
travel to remote conununities to fulfil lecture
engagements.
Music is part of the regular schedule at the cul-
tural centers. Recitals by local American and
national musicians are given, as well as concert
perfoilmances by well-known American artists.
As a result of the State Department's gift to the
larger centers of 25 radio-phonograph combina-
tions equipped with amplifiers and microphones,
together with nuisic loan libraries of records,
scores, and song-books, frequent record concerts
are held.
At Fortaleza, under the auspices of the insti-
tute, a concert was given by the United States
r)28th Army Air Forces Band^ which was attended
by more than 12,000 persons.
Among those regularly planned activities which
are being held are art exhibitions, including photo-
grai^hs of the American scene, reproductions of
American or national paintings, and occasionally
original works of American or national artists.
The Centi'o Cultural Venezolano-Americano at
Caracas prevailed upon Adolf Dehn, distinguished
American artist, to hold an exhibition of his paint-
ings. Mr. Dehn had gone to Venezuela under the
auspices of the Standard Oil Company to do a
series of paintings for that company but found
time to arrange an exhibition of his original water-
colors and lithographs at the institute. The ex-
hibition, which attracted overflow crowds, was
attended by notable Venezuelan critics and
painters.
Another example of the use of exhibitions in
the cultural-cooperation jjrograni comes from the
center at Caracas, where an exhibit was held of
photographic prints by Carlos Herrera, aerial
photographer for the Venezuelan Ministry of the
Interior. Copies of the prints are being sent to
the Hispanic Foundation of the Librai-y of Con-
gress, which provided Sr. Herrera with the film.
The Rosenwald collection of nineteenth-
century French prints was well received when
shown in Habana, Rio de Janeiro, Siio Paulo,
Montevideo, Santiago, Concepcion, Lima, Bogota,
and Mexico City.
Other activities include the production of plays
by American authors in English and by local au-
thors in Spanish and Portuguese. An example
of the expansion in this direction is the formation
of an amateur theatrical group at the Instituto
Chileno-Norteaniericano de Cultura, Santiago,
Chile. The activities of this center embrace a
wide field of the arts, including choral singing,
painting, the teaching of the history of music,
and drama.
Several centers sponsor teas and luncheons to
introduce American citizens and local nationals
informally to one another and to the activities of
the center.
The position of the cultural centers in the life of
their respective conununities is illustrated by the
fact that, when news of the death of President
Roosevelt reached them, people of the other
American republics from all walks of life came
to the centers to mourn with members of the
American colony. In Rosario an impressive cere-
monj- was held in the El Circulo theater under the
joint auspices of the Asociacion Rosarina de In-
tercambio Cultural and a number of other cultural
and civic organizations. From 3 p.m. to midnight
a stream of men, women, and children visited the
theater to pay homage to the late President. Over
10,000 i^eople of Rosario signed a register which
was brought to the United States for presentation
to President Truman as a token of Argentine
sympathy. In the Caracas center a flag-draped
portrait of the late President was hung in the
main patio, and a large Venezuelan flag in front
of the building was at half-mast. In addition to
many public demonstrations in the city, on April
15 several thousand people gathered before the
center for a memorial service. The cultural insti-
tute at Concepcion also reported that crowds of
people fi'om all classes, many not members of the
institute, called to express their sympathy. Dur-
ing the four days of mourning designated by the
Chilean (iovernment, Chilean and American flags
(Continued on puye 2(S,i}
FEBRUARY 17, 1946
233
General Assembly of the United Nations
REPORT FROM LONDON TO THE OFFICE OF PUBLIC AFFAIRS, DEPARTMENT OF STATE
LoNixw, Feb. 9. — The Security Council of the
United Nations emerged from its second big po-
litical test a proven dispute-settling tribunal.
This was established during the fourth week
of the inaugural United Nations General Assem-
l)ly meeting in London, when the Council over-
came f(UMnidable obstacles to agree on a formula
which led to the satisfactory solution of the Soviet
complaint that the presence of British troops in
Greece constitutes ''a situation likely to endanger
international peace"'.
Both Sides Give Ground
Once again the principal parties in the dispute
gave ground and reached a compromise originally
suggested by Edward R. Stettinius, Jr., U. S. Se-
curity Council representative, after facts in the
case had been thoroughly aired. A similar com-
promise several days earlier paved the way for the
satisfactory settlement by the Council of the
Soviet-Iran controversy.
Final solution was found in a proposal advanced
by Andrei Vyshinsky, Soviet Vice Commissar for
Foreign Affairs. It represented a considerable
modification of previous Soviet demands and
demonstrated that controversial matters can be
frankly and openly discussed by the Council with-
out jeopardizing the structure of the United
Nations.
Vyshinsky's proposal as agreed on by Ernest
Bevin, Britain's Foreign Minister, and accepted
by the Council provided that the Council close the
nuitter with the statement by the President to the
effect that, having taken note of the declarations
made by the Soviet Union, the United Kingdom,
and Greece, and later by the Delegations of the
United States, France, China, Australia, Poland,
the Netherlands. Egypt, and Brazil, regarding the
presence of British troops in Greece, as reported
in the records of the Council, the Council should
consider the matter closed.
With the exception of Mexico, whose representa-
tive did not voice an opinion, all interested mem-
bers of tlie Council had gone on i-ecord with dec-
(J83408— 46 2
larations that they did not believe the presence
of British troops in Greece endangered interna-
tional peace.
Stettinius Suggests Solution
Bevin and Vyshinsky, both of whom had usetl
plain language during the discussion, shook hands
when the decision was reached last Wednesday
night. Two nights earlier, when the Council had
reached a deadlock on the question, Stettinius sug-
gested a similar solution. He said :
"I do not believe that it will be wise for the
Council to take formal action in this case. We
are not here to vote each other down. We are hei'e
to examine world conditions, and to deal with
dangers to international peace and security, and
to help compose differences and disputes which
may lead to such dangers. By not acting we are
not reflecting on the United Kingdom. It did
not threaten international peace and security.
"The Charter expressly enjoins the Council, in
discliarging its duties, to act in accordance with
the purposes and principles of the United Nations
as stated in the Charter. Among these purposes
are the maintenance of international peace and
security and the development of kind relations
among nations. The Government of the United
States is convincjed that in the present case and
at the present time the Council could do most to
maintain international peace and to develop
friendly relations among nations by refraniing
from intervention in this unhappy situation."
The Soviet Government originally demanded the
immediate withdrawal of British troops from
Greece, and the United Kingdom asked for an
official Security Council resolution that the pres-
ence of British troops in Greece did not endanger
international peace. This had caused the dead-
lock.
Russians Show Spirit of Cooperation
Vyshinsky was the first to give ground in ad-
vancing the accepted proposal. He pointed out
234
DEPARTMENT OF STATE BULLETIN
that he had already declared at an earlier Security
Council meeting that the Soviet Delegation was
prepared to show the spirit of cooperation, and, in
order to safeguard the unity of action of members
of the Council and the Organization, to move aside
everything that separated them. He said :
"The Soviet Delegation is willing not to press
for any formal decision of the situation which
has arisen in connection with the presence of Brit-
ish troops in Greece. We do not press that the
declaration should state that the presence of these
troops in Greece is a danger to peace and secuiity,
and we do not insist on our previous demands for
an immediate withdrawal from Greece."
After studying the Soviet proposal, Bevin
agreed to its acceptance. He said :
"I am content on my part to make a similar ges-
ture of conciliation and not to insist on any formal
resolution in the matter. It is the desire of my
country that this unhappy incident in the rela-
tions between ourselves and the Soviet Union
should finally be closed so that the unity of action
between our two great states and among members
of the Security Council as a whole should be main-
tained and strengthened. This controversy be-
tween our two great nations has now been closed."
Two Remaining Questions
Two more political questions remain on the Se-
curity Council agenda. Thursday night the Coun-
cil began consideration of the Ukrainian com-
plaint that the presence of British troops in Indo-
nesia endangers international peace. It appeared
as though the Security Council would find an early
formula to solve the problem.
Still to be considered is the complaint from the
Governments of Syria and Lebanon, in a letter of
February fourth to Secretary-General Trygve Lie,
stating that the presence of British and French
troops in Syria and Lebanon constitutes a grave
infringement of the sovereignty of two member
states of the United Nations which may give rise
to serious disputes. They point out that the gov-
ernments expected that these foreign troops would
be withdrawn immediately on the cessation of
hostilities with Germany and Japan and ask the
Security Council to adopt a decision recommend-
ing the total and simultaneous evacuation of the
foreign troops from the Syrian and Lebanese
territories.
International Judges Chosen
While the Security Council was dealing with
these knotty political jn'oblems, the General As-
sembly proceeded with its assigned task of com-
pleting the organizational structure of the United
Nations. Highliglit of the week was the selec-
tion of the 1.5-man International Court of Justice,
which will sit in The Hague.
The Assembly and Security Council, voting in-
dependently and simultaneously, filled 13 of the 15
positions on the first ballot. Under the Charter,
candidates are required to obtain a majority vote
in both the Assembly and Council.
Elected on the first ballot were : Dr. Mo Hsu of
China; M. Charles de Visscher of Belgium; Pro-
fessor Jules Basdevant of France; Dr. Jose Gus-
tavo Guerrero of El Salvador; Professor Sergei
Borisovich Krylov of tiie Soviet Union; Sir Ar-
nold Duncan McNair of the United Kingdom;
Fabela Alfaro of Mexico; Green H. Hackworth
of the United States: Dr. Alejandro Alvarez of
Chile; Dr. J. Philadelpho de Barros Azevedo of
Brazil ; H. E. Badawi Pasha of Egypt; J. E. Read
of Canada; and Dr. Milovan Zoricic of Yugo-
slavia.
Dr. Helge Klaistad of Norway was added to the
Court on the third ballot, and Bohdan Winiarski
of Poland was elected on the fourth ballot.
The Assembly has agreed that the judges will
receive 54,000 Netherlands florms (approximately
$21,600) a year. The President will receive an
additional 15,000 florins (approximately $6,000) as
a special allowance.
The Court Millmeet in The Hague "as soon as
it can be conveniently arranged".
Lie's Acceptance Speech
Trygve Lie, Norwegian Foreign Minister, was
installed as Secretary-General of the United Na-
tions in one of the early Assembly functions of the
week. President Paid-Henri Spaak administered
the oath. Previously, the Assembly by an over-
whelming majority adopted the Security Council's
unanimous decision to nominate Lie for the highest
ofKce in the Organization.
In a brief acceptance speech, Lie paid tribute
to the efficient work of the temporary secretariat
and promised an impartial approach to all prob-
lems. He said :
"It will be my duty always to act as a true inter-
national officer, inspired by the same lofty idea of
FEBRUARY 17, 1946
235
international cooperation which prompted onr
great leaders of the last war in taking tlie initiative
in the creation of the United Nations.
". . . Those who gave tlieir lives in order
that we may be free, those who lost their homes,
those who suffered and still suffer from the conse-
quences of war have given us a sacred mandate;
that is, to build a firm foundation for the peace
of the world. We may find difficulties and ob-
stacles ahead of us. But the harder the task, the
higher the prize. It is the future of the whole
civilized world whicii is at stake."
Trusteeship Committee Reports
Committee Four (Trusteeship) completed its
lengthy consideration of the trusteeship problem
and in a report to the Assembly recommended that
the powers whicli are to administer trusteeship ter-
ritories be invited to conclude trusteeship agree-
ments with the states they feel are "directly con-
cerned". These agreements must be submitted to
the second half of the first General Assembly
meeting, w'hich will be held in the United States
in September instead of April as originally
planned. The Committee made no finding on the
definition of the term xfates directly concerned
and made no recommendation to the Assembly for
an interim body to deal with trusteeship matters
between the first and second parts of the first
session of the General Assembly.
Still to be acted on before the Assembly ad-
journs, probably about February 13 or 14, are sev-
eral important matters, including the United
Nations budget for 1946. The question of tlie
relationship of the AVorld Federation of Trade
Unions and other organizations to the Economic
and Social Council, and the refugee problem, also
had not been reported out of committee.
The Permanent Headquarters Committee was
engaged in consideration of the length}' report of
a special committee whicli recently returned to
London after inspecting possible headquarters
sites in tlie vicinity of New York City and Boston.
Objections were voiced to the special committee's
first recommendation that interim headquarters be
established in New York City and that the per-
manent home be constructed in the Greenwich-
Stamford area of western Connecticut. High cost
of land and buildings in that section, sentiments
of residents of the area, and crowded conditions
in New York City are among the jioints raised.
Some states still favor San Francisco. The spe-
cial committee, whicli was limited to consideration
of areas near New York City and Boston, also
recommended the Hyde Park area of New York,
the Blue Hills section near Boston, and the Bev-
erley district of the North Shore of Massachusetts
as favorable permanent headquarters sites. The
United States has continuously taken the posi-
tion that since it is the host government it will not
enter into the discussion of the specific site.
Budget Cut to $21,500,000
The Administrative and Budgetary Committee
has agreed on a budget of approximately $21,500,-
000 for the United Nations to finance operating ex-
penses in 1946. This represents a cut of about
$3,500,000 from the budget recommended by an
advisory group of experts. Two thirds of this cut
was made possible when the Assembly decided to
iiold the second half of the first meeting in Sep-
tember rather than in April.
Senator Arthur H. Vandenberg, U.S. Delegate
of tlie Administrative and Budgetary Committee,
at the close of the budget discussions warned
against too elaborate plans. "The doors of this
institution should never be closed upon any peace-
loving nation because the annual dues are more
than it can jDay. Let us build carefully and pru-
dently and let us live within our common means
for the sake of solvency in connection with this
great enterprise to which our efforts are dedicated",
he said.
A compromise resolution, recommending that
tlie General Assembly adopt arrangements allow-
ing W.F.T.U., as well as other non-governmental
organizations whose experience the Economic and
Social Council will find necessary to use, to take
part for the purpose of consultation in the work
of tlie Economic and Social Council, is the latest
development in committee consideration of the
question of participation of outside oi'ganizations
in United Nations affaii's. Introduced by Andrei
Gromyko, Soviet Delegate, the resolution will be
voted on by the Political and Security Committee.
Senator Tom Connally, LT.S. Delegate on this Com-
mittee, repeatedly has pointed out that, if the
Committee insisted on naming the W.F.T.U. in any
resolution, he would move that the American Fed-
eration of Labor also be included.
236
DEPARTMENT OF STATE BVLLETIN
Refugees Cause Prolonged Discussion
Tlie refugee question also is causing prolonged
committee discussion and is still before the As-
sembly committee. The United States proposed
that no refugees be compelled to return to their
country of origin if they have finally and definitely
expressed valid objections to so doing. This was
not acceptable to the Soviet representative, even
after it had been amended to include the proviso
that the objection of the refugee to returning
should be expressed "in complete freedom after
receiving full knowledge of the facts, including
adequate information from the governments of
their countries oi tjrigin''. It appeared that the
drafting subcommittee on refugees would have to
bring in majority and minority reports on this
point.
The Yugoslav Delegation objected to another
Tf.S. proposal that no action be taken under the
resolution which would interfere with the sur-
render and punishment of war criminals in con-
formity with international arrangements and
agreements. The Yugoslav Delegate felt that the
precision of the phrase international arraiiffementx
aiid agreementu would imjiose too great a limita-
tion on surrender procedures.
A Soviet proposal that no propaganda should
be permitted in refugee claims against the inter-
ests of the United Nations was opposed by the
United Kingdom, the Netherlands, ami the United
States. Delegates expressed sympatl^y with the
Soviet position that refugee camps should not be-
come centers of intrigue and disaifection, but no
drafting formula could be found which was satis-
factory to all members of the subcommittee. The
Soviet Delegation also i:)roposed that the admin-
istrative personnel of the refugee camps should
be of the same nationality as the majority of the
refugees. This was al.so opposed by the United
States, the United Kingdom, antl the Netherlands,
among others.
Group Representatives Hear Information Plans
In the fourth of a series of meetings designed
to familiarize representatives of private organiza-
tions with the various functions of the United Na-
I ions, members of the temporary secretariat Thurs-
(hiy niglit described the work of the General As-
.sembly deinirtments and outlined future plans.
Ben Cohen of Chile, Chief of the Information
Planning Section and a former special adviser to
the temporary Executive Secretary, told the group
that the United Nations Information Department
will include a division which will maintain close
liaison with private and voluntary non-govern-
ment organizations. He said that these organiza-
tions can make an important contribution by help-
ing to keep the world informed as to the work and
aims of the United Nations.
"In planning tlie information program we tried
to visualize a service which would make out the
United Nations as a living reality to the world.
We hoped to have our own radio station and pi'ess,
films, jniblications. and exhibitions sections,
manned by exjierts. And if budgetary limitations
permit we will set u]) branch information ofHces
on each continent", Cohen said.
The sj)eakers were Duckworth Barker, Chief of
tlie Public Relations Department; Waldo Chani-
berlin, head of the Documents Division; and
George Mathien, Chief of the Language Section.
Among those present at tlie meeting were repre-
sentatives of the American Coiuicil of Education,
A.ssociation for Education in Citizenship, Cluirch
Peace Union, International C()uncil of Women.
Institute of International Education, National
Council of Women of Great Britain, Pan Ameri-
can League, Salvation Army, Veterans of Foreign
Wars of the United States, Young IMen's Christian
Association, and Rotary International.
President Transmits Protocol
of Sugar Agreement
To the Senate of the United /State.s;
To the end that the Senate may give its advice
and consent to ratification, if it ai)prove thereof, I
transmit herewith a certified coj^y of a protocol
dated in London August 31, 1945, prolonging the
international agreement regarding the regulation
of i^roduction and marketing of sugar which was
signed in London May 6, 1937.
I also transmit for the information of the Senate
the report made to me by the Acting Secretary of
State witli respect to this matter.
Harry S. Truman
The AViute House
January .23, IBlfi
ItHleasfd to the press liv tlie Wliite House Jan. 25.
FEBRVARY 17, 1946
237
Limitation of the Production of Opium
EXCHANGE OF NOTES BETWEEN THE GOVERNMENTS OF THE UNITED STATES AND THE
UNITED KINGDOM
Note dated September 8, 1944 f'otn the Ainerican
Kinhassy at London to the Forcujn Opcc of the
(-TO rem me at of the V n'lted KuKjdom
American Embassy,
London, Septemher 8, 1944.
Dear Bennett :
I enclose herewith a copy of a Memorandum
regarding proposed measures for suppressing
opium traffic which the Department of State has
prepared and instructed us to transmit to you.
Attached to tlie Memoranihun are a copy of a Joint
Resohition of Congress on tlie question and a copy
of a simihir Memorandum wliich has been sent to
our Embassy in Tehran for transmission to the
Government of Tehran.^
As you will note, the Memorandum (page 3-4)
urges that all opium producing countries take
steps to limit iJroduction to medical and scientific
requirements and expresses the hope that such
measures will clear the way for an eventual Poppy
Limitation Convention, for which preparations
were undertaken several years ago by the Opium
Advisory Connnittee. The Department in its
Memorandum notes, however, that efforts to con-
vene a Poppy Limitation Conference will be fruit-
less unless the Government of Iran is willing to
participate therein; it suggests that the British
Government might assist in this matter by making
appropriate representations to the Iranian Gov-
ernment. A similar suggestion is also being made
to the Soviet Government.
Other points raised in the Memorandum relate
to the questions of opium production and exports
in India and Burma.
Yours sincerely,
W. J. Gallman
Coun.seJot' of Embassy
J. C. Sterndale Bennett, C.M.G., M.C.,
Foreign Office,
London, S.W. 1.
Draft Memorandum
There is transmitted to the British Government
a coi)y of Public Law -iOO, Seventy-eighth Con-
gress of the United States of America, approved
July 1, 1944. In compliance therewith the Govern-
ment of the United States urges the Government
of Great Britain to give consideration to the ad-
visability of taking such steps as may be necessary
to assure that the production of opium in India
and Burma be limited to the amount required for
strictly medicinal and scientific purposes.
This resolution is an expression of the conviction
of the people of the United States that drug addic-
tion and the illicit traffic in narcotic drugs shoidd
be attacked at their source and that American citi-
zens now serving abroad in countries where opium
is produced and sold freely should be protected
from the danger of acquiring the drug habit. It
is generally recognized tliat i^roduction of opium
over and above medicinal and scientific require-
ments is the principal cause of illicit traffic, of
which the LTnited States is one of the chief victims.
A long step forward towards the suppression of
the abuse of opium was taken when the British
Government on November 10 last announced that
it had "decided to adopt the policy of total prohibi-
tion of opium smoking in the British and British-
jn-otected territories in the Far East which are
now in enemy occupation and, in accordance with
this policy, the prepared opium monopolies for-
For additional information on the suliject of the limita-
tion of the production of ojiimn see the statement by the
Secretary of State on July 3, ]!)44, Bulletin of .July 9, 1944,
p. 47; the article by George A. Morloek. Buixetin of Dec.
10, 1944, p. 723 ; the excliange.s of note.s between this Gov-
ernment and otJier governments : Bulletin of Nov. 26,
1944, p. 629 and Dec. 10, 1944, p. 725 (Afghanistan),
Bulletin of May 13, 194."), p. 911 (Mexico), BirLij;TiN
of .June 3, 194.5, p. 1031 (China), Bulli.;tin of .July 8, 1945,
p. 63 (Turkey), Bulletin of .July 22, 1945, p. 129
(U.S.S.R.).
'Enclosures to Memorandum not printed.
238
DEPARTMENT OF STATE BULLETIN
merly in operation in these territories will not be
reestablished on their reoccupation." This Gov-
ermnent concurs in the further statement con-
tained in that announcement that "The success of
the enforcement of prohibition will depend on
the steps taken to limit and control the production
of opium in other countries." In consonance with
this statement, it would seem to be appropriate
and timely to exchange views concei-ning measures
which may be taken to secure the cooperation of
the interested governments in the solution of this
problem.
As a result of the decision of the British and
Netherland Governments to suppress smoking
opium in the Far Eastern areas referred to above
and the uncompromising attitude of the Chinese
and United States Governments, the legitimate
market for smoking opium in those areas, formerly
amounting to about 350,000 kilograms annually,
will no longer exist. Consequently, in future, ex-
ports of opium will have to be limited to the
demands of the world market for medicinal and
scientific requirements only. During the period
immediately after the war, it is estimated that the
world market for opium for medicinal purposes
will require about 400,000 kilograms of opium,
whereas world production of raw opium for the
year 1944 has been estimated by experts of this
Government, in the absence of exact figures, as
amounting to about 2,400,000 kilograms. There
is also production in Central Europe of morphine
direct from poppy straw totaling about 8,500
kilograms.
The Government of the United States is urging
all opium-producing countries with which it has
friendly relations to take steps to limit production
to medical and scientific requirements. It hopes
that this action will clear the way for a conference
for the purpose of drafting a suitable poppy limi-
tation convention, preparations for which were
undertaken several years ago bj^ the Oi)ium Advis-
ory Committee.
In the hope of expediting and promoting agree-
ment, the United States Government suggests that
the proposed convention should contain pro-
visions :
1. Stating in clear language that its objectives
are (a) to suppress the abuse of narcotic drugs
and (J) to supplement the Hague Opium Conven-
tion of 1912.
2. Restricting the cultivation of ojiimn poppies
for the production of raw ojjium to the countries
which have been producing opium in quantity for
many years and restricting the number of coun-
tries which may export opium to not more than
five of the largest producers.
3. Restricting the cultivation of opium poppies
for the direct extraction of morpliine to present or
lower levels, and prohibiting the exportation of
any of the extracted morphine.
4. Establisliing a control body consisting of not
more than seven members who shall have adequate
powers to enforce compliance with their decisions.
5. Requiring all countries and territories to sub-
mit estimates of their requirements for raw opium
annually to the Control Body.
6. Specifying that each opium producing-ex-
porting country be allotted by the Control Body
an annual production and export quota.
7. Requiring all importing countries and terri-
tories to buy in a given year the quantities of opium
estimated as needed for that year.
8. Assuring the producer a fair return.
9. Requiring the standardization of opium by
all producers.
10. Requiring the licensing and complete con-
trol of all cultivators by the national authorities
with the submission annually of accurate statistics
covering the area cultivated and the quantity of
opium produced.
11. Incorporating a system of complete and ab-
solute government control over the distribution of
opium and any products of the poppy containing
morphine, and over stocks.
12. Stipulating that the parties to the proposed
convention which are not parties to the Geneva
Drug Convention of 1925 agree to apply Chapter V
of the latter convention, which sets up a system of
import ijermits and export authorizations for the
control of the international trade in opium and
other dangerous drugs.
13. Prohibiting a producing country which be-
comes a party to the convention from supplying,
directly or indirectly, consuming countries which
have not become parties to the convention, and
jjrohibiting consuming countries which become
parties to the convention from buying from pro-
ducing countries which have not become parties to
the convention.
14. Stipulating that opium coming from States
which are not parties to the convention shall not
FEBRUARY 17, 1946
239
be allowed to pass through the territory of parties
to the convention.
15. Calling for the prohibition of the manufac-
ture, importation, exportation, and use of smoking
opium, and the closing of opium monopolies.
16. Stipulating that a consuming country, either
in the event of a demonstrated discrimination
against a consuming country in the matter of sup-
ply, or in the event of an emergency arising which
interferes with or closes the existing source of
supply of the said consuming country, may be-
come a producing country, but only with the con-
sent of the Control Body.
17. Insuring the absolute and complete inde-
pendence of the Control Body.
18. Establishing a businesslike and specific ar-
rangement whereby the parties to the convention
accept responsibility for and agree to pay each
their fair shai-e of the cost of implementation
through machinery set up by the convention.
This Government hopes that the British Gov-
ernment on its part will fulfil the intention
expressed in its statement of November 10, 1943,
referred to above, to "consult the governments of
other countries concerned with a view to securing
their effective cooperation in the solution of this
problem." In this connection, it is realized that
it will be fruitless to convene a poppy limitation
conference unless Iran is willing to participate
therein. The Government of the United States is
presenting to the Iranian Foreign Office at Tehran
a memorandum strongl}^ urging the Iranian Gov-
ernment to limit the production of opimn to
medicinal and scientific requirements and to coop-
erate in the work of drafting a poppy limitation
convention. That memorandum is along the lines
of the copy which is attached hereto. If the
British Government could see its way clear to
make appropriate representations to the Iranian
Govermnent, it is believed that the Iranian Gov-
ernment might give favorable consideration to the
proposed program. This suggestion is also being
made to the Soviet Government. It may also be
pointed out that if most of the oijium-producing
countries were to make sacrifices for the common
good by limiting production to an authorized
proportion of the total quantity of opium re-
quired by the world for medical and scientific pur-
poses, and one country were to continue to produce
between 200 and 300 tons annually for its own
non-medical use, such a reservoir would inevitably
be drawn upon by illicit traffickers for their
supplies.
Pending the entering into effect of an interna-
tional poppy limitation convention, this Govern-
ment suggests that it would be helpful if the
British Government would give immediate con-
sideration to the advisability of taking any steps
necessary with a view^ to the announcement at the
earliest possible 'moment that the Governments of
India and Burma will hereafter prohibit the pro-
duction and the exjiort of opium for other than
strictly medicinal and scientific purposes, and will
take effective measures to prevent illicit produc-
tion of opium in their territories and illicit traffic
in opium from their territories.
The Government of the United States is urging
each of the opium-producing countries with which
it has friendly relations to make similar announce-
ments believing that such action would go far to
ensure the success of the prohibition of the use of
prepared opium in the Far East and to safeguard
all countries against the possibility of an era of
increased drug addiction similar to that which
followed the first World War.
Before it will be possible to resume international
discussions in the Opium Advisory Committee or
other body on the main principles to be included
in a poppy control convention, a large amount of
preparatory work remains to be done. This Gov-
ernment feels that much progress could and should
be made during the present year, and accordingly
ventures to suggest two problems the early solu-
tion of which would facilitate the preparatory
work.
The first of these problems is the matter of
exports of opium from India. The position of
the Government of India was set forth in the fol-
lowing statement, dated February 24, 1939, which
was circulated in League of Nations document
No. O.C. 1751 (e) , March 6, 1939 :
"Since the beginning of 1936, exports of opium
from India had practically ceased except for ship-
ments of opium for medical purposes to the United
Kingdom and very small despatches of raw opium
to a few other places, viz., French and Portuguese
Settlements in India, Nepal, Zanzibar and Pemba.
The exports to these latter places are allowed in
accordance with long standing practice and are
subject to arrangements which confine the amount
of such exports to the quantities approved by the
Governments of those countries. Opium is also
240
DEPARTMENT OF STATE BULLETIN
expoited to Burma luid Aden; before 1937, these
territories formed an integral part of India and it
has been decided to continue to allow them to draw
iheir supplies of opium from India at cost price
so long as they require them. It will thus be no-
ticed that India is not an exporting country in any
substantial sense."
It would be heli^ful if the British Government
could furnisli this and otlier interested govern-
ments with details in regard to its intended future
)>olicy concerning the export of opium from India
to supiily either medical or non-medical needs.
Presumably it may wisli to modify the position
taken in 1939 and not autlnn-ize sliipments for use
in the manufacture of smoking opium, in view of
the changes brouglit about by the war and its de-
cision of November 10. 194.'] to pi-oliibit smoking
opium in its Far P2astern territories.
The second problem relates to tlie Indian States.
The position of the Govermnent of India is also
contained in the statement of February 24, 1939
referred to above, as follows:
"I am to add that the Government of India are
not at present in a position to enter into any bind-
ing obligations on behalf of any part of India
except British India. As will be seen from para-
graphs 3 and 4 below, they have already secured
a large measure of cooperation from the States
in all work for opium control and have every rea-
son to hope that they will have increasing success
in this direction. This, however, is secured by
persuasion and not by injunction, and it is there-
fore necessary to make a formal reservation on
belial f of the States. The other parties need be the
less concerned about such a formal declarati<m for
the reasons that the (Jovernment of India control
the only routes by whicli opium from the pro-
ducing States can reacli any country outside India
and that, so far as India is concerned, it is the
interest, as well as the duty, of the Governments
of the British Indian Provinces and of those
States whicli are most closely collaborating with
the Government of India to secure that smuggling
of opium out of the piodticing States is reduced
to a mininunn."
This policy had been previously applied. When
signing the (\)nv('ntion for tlie Suppression of the
Illicit Tiathc in Dangerous Drugs dated June 2G,
193(), the delegate of the Govei'nment of India
declared, "That India makes it acceptance of the
Convention subject to the reservation that the said
Convention does not api)ly to the Indian States
or to the Shan States (which are part of British
India)." In as much as the Indian States num-
ber about 570, contain over one-fifth of tlie whole
jiopulation of India, produce aniuially about 185,-
000 kilograms of opium, and have licensed more
than 8,000 shops for selling opium, it is felt that
the Indian States should be represented directly
or indirectly at any conference or meeting which
may assemble to draft a poppy limitation conven-
tion. Otherwise, an important part of world
opium production would esca])e control; and un-
less all ojiium production is brought under control
tlie task of drafting a popjiy limitation convention
will be rendered impossible of accomplishment.
The Government of the Ignited States believes
that the Britisli Government will agree that it
would be of assistance at this time if the British
Government would indicate whether it will be
possible in future to have the Indian States repre-
sented at international confei-ences relating to
opium (^r, if not, whether tlie Britisli Government
will be prepared to enter into binding obligations
with other countries on behalf of those states.
AVitli regard to the smuggling of opium out of
the jiroducing areas in India, the United States
lias an interest in the situation in India because
lecently it has been receiving opium in the illicit
traffic from India as reported in this Government's
leports for tlie years 194:^ and 1943 on the traffic
in opium and other dangerous drugs. Indian
opium has also recently appeared in the illicit
traffic in Canada. The existence of illicit traffic
in opium in India is disclosed in League of Nations
document No. O.C./A.K. 194(V<)0, dated Septem-
ber 25, 1943, which is the annual report of the
Government of India on o])iuni and otiier danger-
ous drugs for the year 1940:
"Opium continued to be smuggled from the
])oppy producing areas of Kaya Kliabal. Amb,
Slier Garh, Pliulra and Gandaf situated on the
border of Hazara and Mardan Districts of the
NortJi-AVest Frontier Province, Afghanistan and
Nepal. As in previous years, there was a consid-
erable amount of illicit traffic in opium from the
unadniinistered territories along the North Elast
Frontier of Assam and from the Punjab Hill
States, the States of Rajputana and Central India,
the States of Tipjierah and Coocli licliar and from
the Hukong Valley."
The Government of the United States also has
a particular interest at this time in the quantity
FEBRUARY 17, 1946
241
of opium produced annually in India, wliich has
fluctuated between 250,000 and 350,000 kilograms
in the j^ast few years, because of the pi'esence in
India of large numbers of American soldiers and
American merchant seamen. As a means of pro-
tecting the Iiealth of those men this Government
urges the British Government to give immediate
consideration to the problem of surplus opium now
existing in India.
It would be appreciated if the British Govern-
ment would communicate to this Government its
views with regard to the above matters, inchiding
its observations concerning the provisions which
this Government has suggested be incorjjorated in
the i^roposed poppy limitation convention. It
would also be appreciated if the British Govern-
ment would inform this Government at an early
date whether it is prepared to make the suggested
announcement concerning the limitation of the
production of opium to medicinal and scientific
requirements.
7\'.rf of (I note dated August 13, J9Jt5 fram the
Foreign O-ffTce of the Government of the United
Kingdom, replying to the note of the American
Emhasny
Foreign Office, S.W.I.
No. U 6028/32/87. 13th August, 1.945.
Dear Gallivl^n,
You sent to Sterndale Bennett on the 8th Sep-
teml)er, 1944, a memorandum from the State De-
partment concerning proposed measures for sup-
pressing the opium traffic and a copy of a Joint
Resolution of Congi-ess on this question.
I now enclose a memorandmn dealing with the
points raised in these communications. I must
apologise for the great delay which has occurred
in dealing with this subject. Considerable discus-
sion was required between the various Depart-
ments concerned with Opium control, and corre-
spondence was necessary with the Governments of
India and the African territories concerned, before
a final statement was possible.
We hope the points raised are covered ade-
quately and in such a way as to show that the aims
on which both our Governments are agreed are
being pursued by His Majesty's Government as
speedily as local circumstances permit.
Yours sincerely, j p Mabbott
Mr. Waldejiar J. Gallman,
United States Embassy.
1, Grosvenor Square, W, 1.
683408—46 3
Memorandum on the Opium Traffic
His Majesty's Government have considered the
copy of Public Law 400 and the accompanying
memorandimi (7352/6262/87) received from the
Government of the United States on the subject
of the limitation of opium production.
2. His Majesty's Government note the view of
the United States Govermnent that drug addic-
tion and the illicit traffic in narcotic drugs should
be attacked at their source by the method of limit-
ing opium production to medical and scientific
requirements, and they are ready to give careful
and sympathetic consideration to such further
measures as may be practicable towards that end.
In deciding to adopt the policy of total prohibi-
tion of opium smoking in the British and British
Protected Territories in the Far East which are
now in enemj' occupation, and not to re-establish
the prepared opium monopolies formerly in oper-
ation in those territories upon their re-occupation
His Majesty's Government pointed out, in their
declaration of 10th November 1943, that the suc-
cess of this policy of prohibition would depend on
the steps taken to limit and control the production
of opium in other coimtries. For this reason, as
well as on broad humanitarian grounds, it is the
earnest desire of the British people to co-operate
with other States in finding an effective and satis-
factory solution of the problem.
3. Accordingly His Majesty's Government wel-
come tlie suggestion of the Government of the
United States that a Conference should be held,
under appropriate auspices, as soon as circum-
stances permit for the j^urpose of drafting a suit-
able opium limitation Convention, and they and
the Government of India would be glad to partici-
pate in such a Conference.
As the State Department is aware, a great deal
of preparatory work in connection with this ques-
tion was carried out by the Opium Advisory
Committee of the League of Nations immediately
before the war. when agreement was reached as
to the main principles upon which an opium
limitation Convention should be based. On the
request of the Advisory Committee draft Articles
were prepared by the Secretariat of the League,
but at this point the outbreak of hostilities made
further progress impossible. The convenient
course would therefore seem to be to resume the
study of the problem from the point where it
was interrupted by the war, and in particular,
242
DEPARTMENT OF STATE BULLETIN
to utilise tlie preparatory work already luuler-
taken (with which a representative of the Ameri-
can Government was associated) as the basis for
drafting the suggested new agreement, recogniz-
ing of course that changes may have occurred in
the interviil wliich will need to be taken into
account. His Majesty's Government would be
glad to have the further observations of the
United States Government in the light of the
foregoing remarks, and in the meantime they
would prefer to defer comment on the specific
provisions suggested in the Memorandum for in-
corporation ii; the proposed Convention. They
are, however, disposed to think, subject to the
views of the United States Government, that it
would be more convenient to leave the fornuda-
tion of such i)rovisi()ns for discussion and settle-
ment at the projected conference, bearing in mind
that all the opium ])i()(hiring counlries nre closely
concerned with the iiroblem, as Hre also lo a
lesser degree the impoi-ting counlries, and that
further progress can only be made with the con-
sent of all the interested parties. Pending the
summoning of the conference His Majesty's Gov-
ernment and the Govei'nment of India will, so
far as present circumstances jiermit, carefully ex-
amine the proposals of the United States Gov-
ernment and will set on foot the necessary
enquiries.
■4. The Government of the United States sug-
gest that it would be helpful if the British Gov-
ermnent could give innnediatc consideration to the
advisability of making an announcement at the
earliest possible moment that the Govei'uments of
India and Burma will hereafter prohibit the
production and the export of opium for other
than strictly medicinal and scientific purposes,
and will take effective measures to prevent illicit
production of opium in their territories and illicit
traffic in opium from their territories. His Maj-
esty's Government and the Government of India
will continue, in the future as in the past, strictly
to control the production and export of opium
in accordance with their treaty obligations, but
they regret that they are unable at the present
time to make an announcement in the terms sug-
gested. The reasons are as follows.
In India the position as to opium smoking
varies somewhat in the different lorovinces and
States but, broadly speaking, the sale of pre-
pared opimn, the smoking of opium in company
and the possession by smokei'S of more than a
very small amount of pre^sared opium at any one
time is everywhere forbidden. In some Prov-
inces only registered addicts may possess pre-
pared opium, while in some parts of British India
and certain Indian States, opium smoking has
been jDrohibited altogether.
By far the greatest part of the opium con-
sumed in India is taken through the mouth by
persons who in the great majority of cases take
small doses as required and are not slaves to the
Iiabit. Raw opium for this purpose can only be
bought in licensed Government shops and in
strictly limited quantities. Opium indeed is
widely used in India as the commonest and most
treasured of the household remedies accessible to
tlie i)eople, being taken both for i)ro]>liylactic and
analgesic purposes and in order to avert or lessen
fidigue. It nmst be rememljered that in a coun-
try so vast and so poor as India the ministrations
of qualified doctors or druggists are, to large num-
bers of the population living in remote rural
areas, not readily available. Consequently (he
non-inedical use of opium in India as an indul-
gence to such small extent as it may exist, is so
interwoven with the medical and quasimedical
uses that it would not be administratively prac-
ticable to distinguish between them; nor, as the
United States Government will appreciate, would
it be practicable to undei'take the general prohibi-
tion of a jiractice which is tolerated and even re-
garded as beneficial by public opinion. Centuries
of inherited experience have taught the ]ieo]de of
India discretion in the use of opium and its mis-
use is rare. In 1937 the average consumption of
opium per head in British India for all purposes
(including veterinary) was .6137 grammes. In
the United States of America according to Table
III in the latest medical analysis by the Advisory
Conunittee of the League of Nations of the An-
imal Reports of Governments on the traffic in
opium and other dangerous drugs a total of .6174
grannnes of raw opium was used to prepare drugs
for each member of the population in the same
year; and it nuist be remembered that the mor-
jihine content of Indian opium is lower than that
of nmch other opium. The Government of India
are engaged upon extensive plans for the in-
creased provision and wider distribution of medi-
cal facilities in India after the war as part of
their policy of reconstruction; meanwhile, until
medical facilities are available for the population
as a whole on a greatly increased scale it wovdd
FEBRUARY 17, 1946
243
not be practicable wise or indeed humane to re-
quire that consumption of opium sliould be lim-
ited to purposes formally certified to be medical
and scientific.
As regaids Burma, it is the declared policy of
the Government of Burma that opium consump-
tion should eventually be suppressed and the
(Jovernment"s long-term measures ai'e directed
(owar<ls this end. But there are jiractical difli-
culties in tiie way of a full immediate implemen-
tation of that policy. The special considerations
which arise from the prevalence of opium snnig-
gling across the frontiers have recently been ex-
plained in a comprehensive statement sent to His
Majesty's Ambassador at Washington for trans-
mission to State Department on 5th April, ID-tn.
A copy of this statement is attaclied for conven-
ient reference.^
5. It is fui'ther suggested in the Memorandum
(hat there are two problems, the early solution of
which would facilitate the preparatory work
which must be carried out before resuming discus-
sions, one being the question of exports of opium
from India, the other concerning the constitu-
tional position of the Indian States.
The position as regards exj)orts of opium from
India is that prepared opium is no longer ex-
ported at all, but the Government of India still
continues to export small quantities of raw opium
to meet the needs of certain territories with which
there is a close geographical or long-standing po-
litical link, namely, French and Portuguese Set-
tlements in India, Nepal, Burma, Zanzibar
(including Pemba) and Aden. These exports are
made at the wish of, and are confined to the quan-
tities approved by the (Tovernments of the terri-
tories in question, and the Government of India
are prepared to terminate the traffic immediately
they are notified by these Governments that the
opium is no longer required. For certain of the
above-mentioned territories His Majesty's Gov-
ernment has no responsibility; of the remainder,
Aden and Zanzibar may conveniently be men-
tioned first. In both places the system of licensed
consumers is in operation, but the mnnber of con-
sumers is extremely small, viz : 62 in Aden and 33
in Zanzibar, and i.s decreasing in the natural
course of events as the old addicts die off. Li-
censes are issued only to confirmed addicts after
careful enquiry into their needs, and so far as
practicable treatment is provided by the method of
regulated issues on medical advice. Tiie question
has, however, been discussed further with the
xVden and Zanzibar Governments and it has now-
been agreed that the few remaining addicts in
these two territories should be treated as medical
cases, the necessary medicinal preparations for
them being obtained as for medical purposes. As
soon, therefore, as the necessary alternative ar-
rangements can l)e made, these governments will
cease to obtain raw opium from India to meet the
needs of these people.
In Burnui, as explained in the attached paper,
the short-term policy to l)e adopted following re-
occupation of the country, may involve the sale of
opium from Government sliops for a time. This
opium must be obtained from India. As soon as
the Government of Burma is in a position to en-
force its long-term policy of complete suppi'ession
of opium consumjjtion by any means, the importa-
tion of Indian opium will cease.
As regards the second problem, the State De-
partment will be aware from the statement of 4th
Februar}', 1939, to which reference is made in their
Memoiandum under reply, that there is a con-
stitutional difficulty about the formal participa-
tion of the Indian States in. the existing opium
conventions. The difficulty is, however, as ex-
plained in the statement, one largely of form,
due to the fact that the Indian States are not
British territory, although under suzerainty. But
although the control over their internal affairs is
thus in practice liable to considerable limitations,
in fact the Indian States co-operate to a large and
increasing extent with the Government of India
in their policy of opium control. States which
produce opimn for the Government of India are
required to secure that cultivatoi's deliver the
whole of the produce to the State Governments.
The Government of India purchase surplus opium
in excess of States' own requirements and control
the only routes by which opium from the produc-
ing states can reach any country outside India.
It would not be appropriate or practical for
the Indian States, which mnnber some hundreds
and which have no international status, to be rep-
resented as such at future international confer-
ences. Active consideration will, however, be
given to the problem of associating experts drawn
from the Indian States with the Indian delega-
tions to future conferences on this subject.
' Not pi'inted.
244
DEPARTMENT OF STATE BULLETIN
The Government of the United States will see,
therefore, that the two questions which they sug-
gest should receive examination during the year
are, from the practical point of view, of relatively
minor importance and should present no obstacle
to the conclusion of a future agreement. So far as
His jVIajesty's Government and the Government
of India are aware, seizures outside India of con-
traband opium originating in the Indian States,
as also in British India, have for some years been
infrequent and have remained so, notwithstanding
the strain and difficulties under which the admin-
istrative machine has been working during the
war. All possible measures will of course continue
to be taken to suppress the export of contraband
opium. The Government of India have recently
addressed all Provincial Governments urging
them to tighten up their control over the posses-
sion and distribution of opimn and to overhaul
their machinery for dealing with illicit traffic ; they
have instructed all Collectors of Customs both
at the major and the minor ports to galvanise and
where necessary expand their organisations for
the prevention and detection of opium smuggling;
and the necessity for exercising the strictest con-
ti'ol over the sources of production witliin their
respective territories is being impressed on all
Indian States.
6. It is stated further that the American people
are anxious about the possibility of American
troops acquiring the drug habit while stationed
abroad in India and Burma. In this connection it
should be made clear that prepared opium, which
is the form of the drug likely to produce addic-
tion, is not permitted to be sold in either India
or Burma. The sale of opium and other drugs
to United States soldiers in cantonments, in which
a substantial proportion of the United States
troojjs in India are stationed, is forbidden under
Section 56 of the Cantonments Act except with the
specific permission of the Commanding Officer.
In Bengal under the general conditions applicable
to excise vend licenses the licensee is forbidden
on pain of cancellation of the license to sell opium
and other drugs to United States soldiers, whether
or not in uniform. The Governments of other
provinces where United States soldiers are sta-
tioned are being asked to consider, if need be, the
possibility of strengthening provincial rules in a
similar manner. Moreover, in Burma raw opium
can only be bought by registered addicts ; and the
small supplies available for this purpose do not
constitute any danger to American troops, since
the addicts would seldom, if ever, have any sur-
plus for disposal. There is no contraband trade
in prepared opium in India, and any illicit traffic
in raw opium for eating owing to strict control is
small in volume; offendei's are subject to heavy
penalties. In Burma, the contraband opium
brought across the borders from China may in
some circumstances constitute a risk; and as ex-
plained in the attached paper, the policy of the
Burma administration which is directed towards
the suppression of smuggling is the best safe-
guard against the danger of addiction. The con-
sidered view of His Majesty's Government is that,
upon the whole, the risk of troops acquiring the
opium habit through service in India or Burma
is very slight. It may be pointed out that British
troops stationed in India and Burma over a very
long period of years, have never shown the slight-
est tendency to become drug addicts. Cases of
this kind are almost unknown.
7. The American Government assert that it
would be fruitless to convene a Poppy limitation
Conference unless Iran, which is one of the main
producing countries, is willing to participate
therein, and ask that the representations which
have been made to that country by the Govern-
ment of the United States in a parallel memo-
randum should be supported by the British Gov-
ernment. There is ample evidence that large
quantities of opium are exported from Iran,
mainly to China and the Far East, and there can
be little doubt that a considerable i^roportion of
this opium finds its way on to the illicit market.
For the reasons stated above His Majesty's Gov-
ernment feel that the question of limiting the
production of opium to medical and scientific re-
quirements is one which is best left for discus-
sion at the proposed Conference, but they fully
agree that it is essential to bring expoi-ts of opium
from Iran under the system of international con-
trol as soon as possible. The position in this re-
spect is that Iran is a party only to the 1931 Con-
vention, and it is considered, therefore, that Iran
should be urged to accept the existing opium Con-
ventions, including Article 3a of the International
Opium Convention of 1912, and to ensure a
proper control over exports. In the view of His
Majesty's Government this is a preliminary step
{Continued on page 261)
International Organizations and Conferences
Calendar of Meetinj
The United Nations :
General Assembly
Security Council
•Economic and Social Council
Civil Aviation Conference
Council of Foreign Ministers: Meeting of Deputies
International Labor Organization:
Conference of Delegates on Constitutional Ques-
tions
International Development Works Committee
International Technical Committee of Aerial Legal
Experts (CITEJA) : 14th Session
Anglo-American Committee of Inquiry
Far Eastern Connuission
International Cotton Study Groups: Sulicommittee
of the Internatioiial Advisory Committee
North American Regional Broadcasting Engineering
Conference
Council of the United Maritime Authority
West Indian Conference
Extraordinary Meeting of the Directors of the In-
ternational Meteorological Services (IMO)
Regional Air Navigation Conference
International Monetary Fund and International
Bank for Reconstruction and Development :
Boards of Governor's
London
London
London
Bermuda
London
London
Montreal
Paris
En route to Berlin
En route to Washington
Washington
Washington
London
St. Thomas, Virgin Is-
lands (U.S.)
London
Dublin
Wilmington Island, Ga.
January 10 (continuing in session)
January 17 (continuing in session)
January 23 (continuing in session)
January 15 (continuing in (session)
January IS (c<intinuing in session)
January 21 (continuing in session)
January 28-February 2
January 22 (continuing in session)
Hearings will open in Berlin on
February 15. Hearings held
in London from January 2o to
February 5.
Hearings closed in Tokyo on Feb-
ruary 1
February 18
February 4 (continuing in session)
February 4 (continuing in session)
February 21
February 25-March 2
March 4
March 8
The dates in the calendar are as of Feb. 10, 1916.
245
The Record of the Week
World Food Crisis
Statement hy TIIK PUKSIDKNT
[Itcli'nsi'il (c Ihi' pii
Fi'hniiir.v i' I
For the world as a wliole, a food crisis has de-
develoiDed which may prove to be the worst in
modern times. More people face starvation and
even actual death for want of food today than in
any war year and pcrliaps more tlian in all tlie
war years combined.
The United States and other comitries iia\c
moved food into war-torn connlries in record
amounts, but there has been a constantly widening
gap between essential mininuun needs and avail-
able su])i)lies.
Although this country enjoyed a near-record
production of food and a record croj) of wheat,
the wheat crops of Euro))e and North Afi'ica and
the rice crops of the Far East liave pioved to be
nmch shorter than anticipated; in fai't some areas
have experienced the shortest ci'ops in fifty years
because of extreme droughts and the disruption
of war.
We in this country have been consuming about
;5,.300 calories per person per day. In contrast,
more than 125 million people in Europe will have
to subsist on less than 2,000 calories a day ; 28 mil-
lion will get less than 1,500 calories a day and in
some parts of Europe, large groups will receive as
little as 1,000 calories.
Under these circumstances it is apparent that
oidy through supei-human efforts can nuiss star-
vation be prevented. In recognition of this situ-
ation (ii'eat Britain oidy yesterday announced
cuts in rations of fats and a return to the dark war-
time loaf of bread.
I am sure that the American people are in favcu'
of carrying their sliare of the burden.
Accordingly, I have instructed the appropriate
agencies of the (lovernmenl to ])ut into effect a
nnniber of emergency measnres designed to help
incel ci'ltically urgent needs to the greatest jjossi-
246
ble exicn) in the shorte^>t possible time. The co-
(jperation of every man, woman and child, the food
trades and industries, the transportation industry,
and others will be needed to make these measures
effective. I know the conscience of the American
people will not permit them to withhold or stint
tlieir cooperation while their fellow men in other
lands suffer and die.
The measures to be taken are as follows:
1. The appropriate agencies of this Govern-
ment will inunediately inaugurate a vigorous cam-
paign to secure the full cooperation of all con-
sumers in conserving food, particitlarly bread.
^Vdditional emphasis will be placed upon the co-
ojieration of bakers and ictailers in reducing waste
of bread in distribtif ion channels.
2. The use of wheat in the direct production of
alcohol and beer will be discontinued; the use of
other grains for the production of beverage al-
cohol will be limited, beginning March 1, to five
days' consumption a month ; and the use of other
grains for the production of beer will be limited
to an aggregate quantity equal to that used for
this jnirpose in 1940 which was 30 percent less
than the quantity used in 1045. This will save
for food about 20 million bushels of grain by June
30, 1946.
3. The wheat flour extraction rate (the quantity
of flour produced from each bushel of wheat) will
be raised to 80 percent for the duration of the
emergency. Also, steps will be taken to limit the
ilistribution of flour to amounts essential for cur-
rent civilian distribution. This vi'\\\ save about
25 million bushels of wheat during the first half
of 194(1.
4. The Department of Agriculture will control
millers' inventories of wheat, and bakers' and dis-
( ributors' inventories of flour. The inventory con-
hols will l)e designed to maintain the wlieat and
FEBRUARY 17, 1946
247
Hour being- held f<ir eiviliiiii use at the niinimuni
necessaiy for distribution pur^joses.
5. Specific j^reference will be given to the rail
movement of wheat, corn, meat, and other essen-
tial foods in order promptly to export maximum
quantities to the destinations Mhere most needed.
(!. The Department of Agriculture will exercise
direct control over exports of wheat and flour to
facilitate movement to destinations of greatest
need.
7. Necessary .steps will be taken to export during
this calendar year, 375,000 tons of fats and oils,
1.6 billion pounds of meat, of which one billion
pounds is to be made available during the first
half of l'.>4<i. and to increase the experts of dairy
l)rodlicfs, piirl icidarly dieese and i'\ m |iiir;il('d milk.
H. The W'ai' and Navy Deparfnieuls already
lui\e aided iiiMlci-ially (he uiovenieni of l'hili|)|)inc
('0]>ra (the raw niatci'ial IVoni wliicli cocdaiiiil dil
is produced) by releasing 200 LCM and J boals
for the inter-island trade in (he Philippines.
These Departments and the War Shipping Ad-
ministration will take inunediate steps to make
available the additional ships needed for this
l^urpose.
The Secretaries of War and Navy will release
for the movement of food to Europe all refriger-
ated ships not essential to the maintenance of the
How of food to the armed forces.
9. The Department of Agriculture will develop
additional ways in which grain now being used in
the feeding of livestock and poultry could be con-
served for use as human food. These steps may
include means to obtain the rapid nuirketing of
heavy hogs, preferably all those over 225 pountls,
and of beef cattle with a moderate rather than a
high degree of finish; to encourage the culling of
poultry Hocks; to jjrevent excessive chick produc-
tion ; and to encourage more economical feeding
of daii-y cattle. Regulations to limit wheat inven-
tories of feed manufacturers and to restrict the
use of wheat in feed will be prepared.
We are requesting the coopei'ation of retailers
and other distributors in informally rationing
commodities that will be in scarce sujiply for the
months immediately ahead. Actual I'eductions in
the volume of distribution may be suggested, with
the obligations placed on the industry involved lo
handle distribution e(iuitably. 1 believe that with
the wholehearted cooperation of food manufac-
turers, wholesalers, and retailers the job can be
done.
The measures which 1 have directed will no
doubt cause some inconvenience to many of us.
Millers and bakers, for example, will have to adapt
their operations to produce and to use flour of a
higher extraction late while consumers may not
be able to get exactly the kind of bread that many
pr'efer. AVe will not have as large a selection of
meats, cheese, evaporated milk, ice cream, nuirga-
rine. and salad dressing as we may like. How-
ever, these inconveniences will be a small price to
l)ay for saving lives, mitigating suffering in liber-
ated countries, and helping to establish a firmer
foundation for peace.
ill atlcnipl iiig to alle\ia((' the shortages aliroad,
(his coiiiitry will adhere (o (he |)olicy of gi\ing
prerereiice lo (he lil.ieraled peoples .'ind to those
who lime Foiighl, beside us, bu( we si in II also do our
u(iiios( to prevent starvation among our foriiH'r
enemies.
I am coiifideiil that e\('ry eilizeii will cooperate
wholeheartedly in the complete and inunediate
mobilizati(jn of this country's tremendous re-
sources to win this world-wide war against mass
starvation.
The wheat and otlier food proiliicts planned
for export during the first six months of this
year will provide 50,000,000 peo])le with a diet of
2.00(1 calories a day or 100,()(J0,()()() with ],()(K1
calories a day.
In half of Europe today the urban population
is existing on less than 2,000 calories a day, com-
pared with 3,300 a person here.
World food production per capita this year is
about 12 percent below pre-war production. In
Europe it is about one fourth below normal, and
it is almost as much in Japan.
In many parts of the Orient the situation is even
more ci'itical than in the worst areas of Europe.
In the Philippines production declined even
more than in Ja|)an, wliere it was a fifth below
pre-war.
In India and the Far East, where 05 peicent of
the world's rice normally is jjroduced, production
is 15 jjercent below ntn'mal because of drought and
cumulative efiects of the war. The greatest reduc-
tion is in Burma, Siam, and Indo-China, the larg-
est exporters.
248
DEPARTMENT OF STATE BULLETIN
Food Consumption in European Countries
[Keleased to the press February C]
The Emergency Economic Committee for
Europe has reviewed such information as is avail-
able to it about the levels of food consumption in
Eurojaean countries, with the object of estimating
the diet in terms of calories which an average per-
son in each country might expect to receive, in the
course of the next few months.
The information on which this study is based
is incomplete. In some cases it has been necessary
to use information obtained through non-official
channels. In all cases the future position has been
forecast in terms of prospects as they appeared
early in January so that changes in the food out-
look which may have taken place since then are
not taken into account. Thus, much of the infor-
mation on which the forecasts have been based is
subject to an appreciable margin of error. Never-
theless, the Committee considers that its review
presents a substantially correct broad picture of
the prospective food position in the countries
covered.
The broad picture that emerges, after taking
into account all home-grown and imported food
supplies available or in sight, is that over the next
few months over 140 million people in the Euro-
pean countries reviewed will have to continue to
live on a diet which provides an average of less
than 2,000 calories a day.^
Specifically the committee has found that :
1. Approximately 100 million people in the
following groups will probably be receiving an
average total diet of 1,500 calories per person per
day or less :
(a) The non-farm population of Austria (74
percent).- (The non-farm population in the
" It is emphasized th.at the division of various grotips of
the population of Europe into broad diet categories is
based on the estimated prospective average level of the
total diet of the group concerned. Within any group the
actual consumption of different individuals may vary from
starvation to fully adequate levels.
■ The percentage figures shown In parentheses are an
estimate of the proportion of the total population of the
country concerned wliich is in the particular group listed.
Tlius, about 74 percent of the total population of Austria
is estimated to be in the non-farm population group.
United States and United Kingdom zones and in
"Vienna are currently receiving somewhat over
l.noo calories, but most recent information indi-
cates that rations may have to be reduced, thereby
bringing the diet of the non-farm jDopulation in
all zones of Austria under 1,.500 calories)
(h) The farm population of tobacco-growing
regions in Bulgaria (9 i^ercent)
(c) German residents in Czechoslovakia (so far
as they do not qualify for Czechoslovak citizen-
ship (16 percent)
(d) The non-farm population of eastern Slo-
vakia (3 percent)
(e) The non-farm population of Finland (43
percent)
(/) The non-farm population of Germany (7.5
percent). (The non-farm population in the
United States and United Kingdom zones, in the
Union of Soviet Socialist Republics zones, with
certain groups excepted, and in Berlin are cur-
rently receiving somewhat over 1,500 calories, but
most recent information indicates that rations may
have to be reduced, thereby bringing the diet of
the non-farm population in all zones under 1,500
calories)
(g) The non-farm population of Hungary, es-
pi'cially Budapest (50 percent)
(h) The non-farm population of Italy (59 per-
cent)
(/) The non-farm population of Rumania (30
percent)
(j) The non-farm population of Spain (40 per-
cent) may also be in this category.
2. A further 40 million i^eople will probably
be receiving an average total diet of over 1,500
but less than 2,000 calories including :
(a) The non-farm population of France (65
percent) -
(6) The non-farm pojudation of Bohemia,
Moravia, and western Slovakia (50 percent)
(c) The non-farm population of Greece (47 per-
cent)
(d) The farm and non-farm population of cer-
tain districts of Yugoslavia (33 percent).
3. An average of a bare 2,000 calories per day
appears to be in prospect for the non-farm popu-
FEBRUARY 17, 1946
249
latioii of Luxemboiirjj aiul possibly Portugal.
Somewhat, higher diets still umler 2,500 calories
may be anticipated for the non-farm populations
of Belgium, Bulgaria, the Netherlands, Norway,
Poland (with certain groups at lower levels), and
Yugoslavia.
i. Average diets of over '2,500 calories will be
available only for the non-farm populations of
Denmark, Sweden, Switzerland, and the United
Kingdom and farm poj)ulations of all countries
except where otherwise noted above.
It should be noted that the above classification
excludes entirely Albania, fiire, Turkey, and the
Union of Soviet Socialist Republics, for which no
definite information on the food situation was
available to the Committee.
While this study is in terms of calories only, as
a convenient indicator of the level of food supplj',
adequate supplies of other nutritional elements —
proteins, fats, vitamins, and jninerals — are also
essential. In general, current and prospective
European diets are even less satisfactory in other
mitritional elements and in i)alatability than they
are in calories.
As a guide to the possible nutritional and eco-
nomic effects of the diet levels described in this
review, it may be noted that a diet containing an
average of about 2,(150 calories per daj', in addi-
tion to necessary quantities of other nutritional
elements, has been recommended by the UNRRA
Food Committee as the amount of food sufficient
to maintain full health and efficiency in a
poi)uhition with a normal distribution according
to sex, age, and occupation. Pre-war diets in some
countries in southern and eastern Eurojie did not
reach this level, however, while diets in north-
western European countries were generally at
levels somewhat above this standaT'd.
An average diet of around 2,000 calories has
been generally recognized in military and civiliaTi-
relief planning as a mininuim level below which
there would be marked effects on ability to work
and danger of the development of disease and
unrest associated with food shortage. These ef-
fects become progressively more serious as the
diet is reduced down to and below 1,500 caloiies
and the period of low diet is prolonged.
Thus a serious gap between food supplies and
nuninnun requirements remains for many millions
of people in Europe even after the vigorous efforts
to alleviate the position which have been, and are
being, made by the governments and international
agencies concerned have been taken into account.
Special note accomfanyinf/ statement;
The Emergency Economic Committee for Eu-
rope is an intergovernmental committee which was
established in June 1945 to give consideration to
European economic problems of common interest
to Allied countries in the immediate post-war pe-
riod. The present members of the Committee are
Belgium, Denmark, Greece, Luxembourg, the
Netherlands, Norway, Turkey, the United King-
dom, and the United States; the Government of
Czechoslovakia and UNRRA are represented by
observers; and invitations have been issued to the
other European Allied governments.
The Committee has established subcommittees
on food and agriculture, enemy exports, fertiliz-
ers, industry and materials, power, .seeds and tim-
ber, and for various more specialized purposes.
Philip Noel-Baker, Minister Plenipotentiary.
United Kingdom Minister of State, is the Chair-
man of the Committee.
[Kflcasi'd to the [ii-Hss by the Pan .\nierieaii Uuioii.]
Bills granting full suffrage to women, or extend-
ing their present civic rights, were recently before
the Congresses of Chile, Colombia, and Peru. In
the last-named country women property holders
have held the right to vote for some years, but a
new amendment to be considered by the 1946 ses-
sion of the Peruvian Congress would make literacy
and age the only qualifications.
A bill granting women the right of suffrage and
the right to hold public office has already been
presented to the Fir.st Connnission of the House
of Rejiresentatives in Colombia. Chilean women,
who make up 40 percent of the total working popu-
lation of the country, would receive equal civic
rights with men under terms of a bill recently pre-
sented to the Senate of that country. The measure
is supported by all three leading political jjarties.
The new Ecuadoran Constitution, adopted eai'ly
this year, also explicitly gives women the vote for
the first time in that country's history, although 2
earlier constitutions (Ecuador has had 14 consti-
tutions since 1880) made no sex distinction in
granting suffrage.
250
DEPARTMENT OF STATE BULLETIN
Fascism on Trial at Niirnberg
A discussion of the historical importance of the Niirnberg trial was broadcast on February 9,
1946 by Assistant Solicitor General Harold Judson, Charles A. Horsky of Justice Jackson's staff,
and Francis Russell, Acting Director of the Office of Public Affairs of the Department of State.
The text of their conversation on the air is presented below. The broadcast uas the ninth and
last in a group of State Department programs in the NBC University of the Air series entitled
"Our Foreign Policy." Sterling Fisher, director of the NBC University of the Air, was chair-
man of their discussion.
[Released to the press February 9]
Fisher : Mr. Eussell, the State Departmeiit pro-
posed this broadcast because of a belief that the
American people are largely unaware of the tre-
mendous historical importance of the Niirnberg
trial. Can you explain why it's so important ?
Eussell: Because Fascism is on trial at Niirn-
bei-g. This is more than the case of the prosecu-
tion versus the Nazi defendants, on technical
counts under the so-called ''laws of war". More
than treaty violations and war atrocities are in-
volved. A whole political and social system is on
trial — a system which has war and violence as its
end motive. Too few Americans realize the deep
significance of the Niirnberg trial. It is Imilding
the legal foundations of peace.
Fisher : A friend said to me : "Why do we go to
all this trouble to try Goering and Hess and the
rest of the Nazi leaders? Everybody knows
they're guilty, and it would save a lot of time and
effort just to take them out and shoot them." Mr.
Russell, I suppose a lot of people ask you that,
among those who write the 400 or so letters you get
every day in the State Department mailbag.
Russell: Yes, there have been rjuite a few let-
ters on Niirnberg. The two commonest, queries
are the two extremes — the type you mention who
think the Nazi leaders should be executed imme-
diately without trial, and those from people who
seem to feel that they are not being given a fair
trial. Both types show there is need for more in-
formation on the trial. Here's a letter from an
irate veteran out in Los Angeles— quote : "Where
in . . . (I'll paraphrase it in language that's ac-
ceptable on the radio) Where in heck did you get
the mistaken notion that my cut-up buddies intend
for you to keep the murdering Nazis alive? The
penalty for first degree murder — of which 90 per-
cent of adult Nazis are guilty, whetlu'r or not they
pressed the trigger — is DEATH !" And he signs
himself "Yours emphatically".
FisiiEE : What about that, Mr. Judson ? How
would you answer that letter?
JunsoN : Well, Mr. Fisher, on the field of battle
you have to shoot first and talk afterward. If a
Nazi sticks his head up, you shoot him if you can.
But when the fighting is over, you don't do that
unless you want to lower yourself to the level of the
Nazis themselves. You deal even with your ene-
mies within a framework of law and justice.
Fisher: Mr. Horsky, what do you say on this
point ?
HoRSKv: I don't follow the argument that we
should have shot these people outright. The Nazis
may have done it, but we in America have as a
fundamental idea of justice that everyone is en-
titled to present his case and that you come out
better in the long run if you have a fair judicial
proceeding.
FisHER : Mr. Judson. do you think anyone
entertains any doubt that Goering, Hess, and the
others are guilty?
JunsoN : That, Mr. Fisher, is the question the
Court is going to answer when all of the evidence
is in on both sides. Personally, I don't think there
can be much question but that a handful of Nazi
leaders are responsible for some of the worst
crimes against peace and humanity that the world
has ever known. But I just don't know ail the
facts about a lot of the defendants, like Saukel or
Fritzsche or Funlv.
HoiisKY : A great many books were written
about Nazi Gernuiny, but when we came to pre-
pare the case for prosecution we found that we had
pitifully few specific facts outside tlie field cov-
ered by military intelligence. We have had to
learn a great deal. But as Justice Jackson has
said, we want to make sure we punish only the
FEBRUARY 17, 1946
251
right men and for the right reasons. It takes
thorough investigation and careful weighing of
evidence to arrive at objective conchisions. That's
the process going on riglit now in Niirnberg.
Russell: I can't claim to be an expert on these
things, but I remember reading about the trial
of German World War I criminals in a little book
called "AVar Criminals", by Dr. Sheldon Glueck
of Harvard University. That trial was pretty
badly bungled. Mr. Judson, the present trial in
Niirnberg seems to be a shining example of ef-
ficiency and justice by comparison.
Judson: Yes, Mr. Russell, the Leipzig trial, as
it was called, was quite a farce. Here's what hap-
pened : An Allied commission was set up in 1919,
after the war was over, to plan the trial of war
criminals. The French, Belgians, British, and
others accused a total of 896 persons of war
crimes, atrocities, and other violations of the laws
of war. In January 1020, Germany was asked to
deliver these men to the accusing nations, and a
great hue and cry went up in Germany. The ac-
cused quickly became martyrs, and the German
Government proposed that they be tried before the
Supreme Court of tlie Reich at Leipzig.
Fisher: German war criminals tried in a Ger-
man court ?
Judson: Yes, that was the so-called "compro-
mise" proposed by Germany. And, fantastic as
it may seem, the Allies, who were getting tired of
the whole business by then, agreed.
Fisher: Were any of them convicted?
Judson : Out of the original list of about 900^ —
which the Allies had said were only a "sample''
of the actual offenders — the Germans made up
what they called a "test list" of 45 names. Of
these, 12 were actually tried — and not until two
and a half years after the end of the war ! Six
were convicted, and their sentences ranged from
6 months to 4 years.
Horsky: I think it would be instructive, Mr.
Judson, to compare the procedure at Niirnberg
witli tlie farce you've been describing.
Fisher: Won't you make that comparison, Mr.
Hoi-sky ?
Horsky: In the first place, we're not leaving
the punishment of war criminals to the Germans.
This time the four main powers are united in
their determination to see that justice is done.
Second, the Allied Armies went right into Ger-
many and caught the war criminals — only one of
the six top leaders, Martin Bormann. is thought
to be alive and still at large. And finally, we're
trying the criminals quickly, while the evidence
and the witnesses are available, instead of waiting
two and a half years.
Russell: But as I understand it, the puipo-ses
of the Niirnberg trial are a lot broader than just
convicting the 21 prisoners in the dock.
Fisher : Twenty-one ? I thought there were 24.
Russell : There were 24 in the indictment. But
Bormann is still missing. Ley committed suicide,
and Krujjp is too ill to be tried, which leaves 21.
Isn't that right, Mr. Horsky ?
Horsky: Yes. But on your first point, Mr.
Russell, the main purpose of the trial is to indict
in an international tribunal the leaders of a na-
tion who ijlotted and waged an aggressive war.
You can see what that means — at Niirnberg notice
is being served on all who may again plot aggres-
sion that they will be treated as common criminals
when the rest of the world catches up with them.
The trial is setting an important precedent for
international law.
Judson: Another precedent is being set by in-
cluding six organizations in the indictment, the
Gestapo, the SS and SA organizations, the Nazi
Party leadership coi'ps, and so on. The Niirnberg
trial will determine whether these groups were
criminal organizations or not. Once that is es-
tablished, it will enormously simplify the job of
trying thousands of officials connected with them.
Russell: Mi: Judson, you might also mention
the effects of the trial on the German people.
Judson : The conduct of the trial in itself is a
living demonstration of democratic ideas of justice.
More than that, it's bringing into the open, for
Germany and the whole world to see, the nature
of the Nazi conspiracy.
Horsky: Yes, it's revealing the methods by
which a few unscrupulous men took control over
the whole of Germany and a large part of Europe.
It's a liberal education for the Germans and I
think for us as well.
Fisher: But I understand from some of the
correspondents who have returned from Germany
that we haven't made very effective use of the trial
for educational purposes. It's been charged, Mr.
Russell, that our propagandists over there are
hamstrung by the limitations placed on them.
Russell: Yes, I've heard the same criticism.
It's true that very few Germans have had a chance
to see the trial at first hand, because the facilities
are limited. But we are trying to get the story
252
DEPARTMENT OF STATE BVLLETIN
out, tlirough the newspnper and the magazines our
information service is publishing in the American
zone and through the German press as welL
FiSHEH : Perhaps we ouglit to do a little more
educational work along this line among our own
occupation troops, judging from the recent Army
poll of Gl opinion over there.
Russell: I've seen that Army survey, Sterling,
and it shows that GI opinion is pretty strongly
opposed to leniency for the Nazi leaders. Ninety-
three percent thought we should "kill or put in
prison for life all big shot Nazi leaders" (the
language is a direct quotation). And 73 percent
thought we should do the same to — quote: "all
the little Nazi leaders who held lower positions".
Fisher: AVhen was that poll made?
Russell: Last September, the same time as the
survey you mentioned.
Fisher: Well, that's encouraging. . . . But to
get back to the Niirnberg trial, I'd like to ask a
question of Mr. Horsky, on behalf of that unseen,
unheard member of our discussions. Bill Johnson,
of Middletown, U.S.A. Fuancis Russell has said
that Bill Johnson knows entirely too little about
the Niirnberg trial. Mr. Horsky, suppose you fill
us in on the background of the trial.
HoKSKY : Well, Mr. Fisher, the first step toward
Niirnberg was taken at the Moscow confei-ence in
November 1943. We agreed with the British and
the Russians to deal with the major war criminals
jointly. Those whose crimes were connnitted in
particular localities wei-e to be taken back to those
same areas for trial and punishment, but the top
Nazi leaders were to be dealt with by the Allied
Nations together.
Fisher: Mr. Judson, how did the Niirnliei-g
trial itself come about ?
JuDSOx : It really started as an American proj-
ect. Just before the end of the war in Europe,
President Truman assigned to Associate Justice
Jackson of the U. S. Supreme Court the task of
drawing nj) a ])lan for dealing with the major war
criminals. On June 7 the White House released
Justice Jackson's first report, recommending the
estal)lishment of an international court which
would tiy tlie Nazi leaders for violations of inter-
national law, of treaties, and of — quote : "the prin-
ciples of the law of nations, as they result from the
usages established among civilized peoi)les, from
the laws of humanity and the dictates of the public
conscience". Those words are from the Fourth
Hague Convention of 1907.
Fisher : Mr. Horsky, what haj)pened then ?
Horsky: Justice Jackson went to London in
June to meet the prosecutors for the British,.
French, and Soviet Govei'uments. After two
montlis of negotiations, they produced the Char-
ter for this new International Military Tribunal,,
which defined \\ai' crimes and set up rules of pro-
cedure and of evidence. In October, after the
Court had been organized, tlie four prosecutors
filed with it the indictment against the 24 de-
fendants and the six organizations.
Flshek: That covers the background of the
trial. Mr. Horsky. But I'm afraid we're begin-
ning to sound a little bit like a lawyer's conven-
tion. Let me enter another appeal on behalf of
Bill Johnson. How about hearing something of
how you got tlie goods on the war criminals?
From all indications, it must be the greatest de-
tective story of all times, and Bill Johnson and T
like detective .stories.
Horsky : I'd rather not put this merely in terms
of a detective story; it's much more than that.
What we're dealing with here is the greatest con-
spiracy in history, a conspiracy and a crusade
against civilization.
Fisher: Granted. But how did we get our evi-
dence against these particular war criminals?
Horsky: Well, while the negotiations were go-
ing on in London, three American groups were
working hard to assemble the evidence — the facts
the prosecution would need. Here in Washington
we had a group of lawyers working with the State
Department, O. S. S.. Military and Naval Intelli-
gence, the Judge Advocate General's OfHce, and
other agencies.
Fisher : That was your group *
Horsky : Yes. But as time went on and sources
of information liere were exhausted, many of the
Washington staif were sent to Europe to help two
grou])s which were ^Yorking over there. One group
had headquarters in Paris under Colonel Storey —
the document section. It searched for key docu-
ments in the tons and tons of materials that had
been captured — documents for use as evidence in
the trial.
FisiHCR : And the second group?
HousKY : That was the intenogation section
under Colonel Amen. It searched for people who
knew the inside story of what went on in Germany
ami who could and would give testimony.
Fisher : I siippose those groujis liad some inter-
est ill"' adventures . . .
FEBRVARY 17, I9i(>
253
Hoksky: Yes tliey did, Mr. Fislier. Once in a
Avliile it was a little like a detective story. One day
a yomifi lieutenant on our staff got a tip tliat there
was soniethin<>- very hot hidden in a certain castle
in Bavaria which had ali-eady been searched. He
investigated it again and finally found behind a
false wall all the personal papers of Rosenberg,
tlie defendant who was known as the '"spiritual
ieadei'" of the Nazis. They were all neatly bound
in 1^50 volumes. He also found recordings of
Rosenberg's speeches and films showing the Nazi
leader outlining Nazi aims. All these have been
(if great value at the trial. It was lucky for us
that the Germans have such a passion for keeping
detailed records of their doings.
Fisiiek: And very unlucky for Herr Rt)senberg
tliat he couldn't bring himself to destroy those
lecords.
Hoksky : Most of the valuable documents,
though, didn't turn up that easily. We had to dig
them out. For instance, an American rejjorter,
Dan de Luce, was driving past the Air Ministry
ill Beilin one day in a jeep. He saw'some German
Workmen burning papers that were scattered about
from the bombings. He gave two of the men a
cigarette ai:)iece to load the rear end of the jeep
with a pile of those papers. When he went through
them, he noticed a black book marked, "The Case
of Austria — Cl()sed". It was the complete tran-
script of all tele])hone conversations by Hitler,
Goering, Mussolini, and others dealing with the
first Nazi aggression — the seizure of Austria. At
the time that hapjiened, in 1!);5S. one of the Niirn-
berg defendants, Seyss-Incjuart, who was then the
Nazi leader in Austria, sent a telegram asking Ger-
man help in maintaining order. One of the tele-
phone transcripts was a conversation in which
Goering had dictated the text of the telegram to
Seyss-Inquart ! The telegram was actually not
even sent — Goering told Seyss-Inqnart not to
bother — but it was released the next day in Berlin
and Nazi troops went into Au.stria.
Fisher: That's (piite a story. I wish we had
time for more . . . But. Mr. Judson. we'd better
get a word in here about the way the trial is set
up.
Judson: Well, each of the four countries has
appointed a judge and an alternate. Francis Bid-
die, the f\)rmer Attorney General, is our judge,
and Federal Circuit Judge John J. Parker is our
alternate. Justice Jackson, of course, heads our
prosecution staff. In his opening statement and
in his conduct of the American prosecution, he
has done a great job.
Russell: I'd like to say that I read that open-
ing statement and I agree. It is not only a legal
document but a concise history of fascism in
Germany and an analysis of how it worked.
Fisher: Sounds like a sociological document,
Mr. Russell.
Russell : It is.
Judson : Justice Jackson ended that opening
address to the Court with a very memorable para-
graph : "Civilization asks whether law is so lag-
gard as to be utterly helpless to deal with crimes
of this magnitude by criminals of this order of
importance. It does not expect that you can make
war impossible. It does expect that your jui'idical
action will put the forces of international law, its
precepts, its prohibitions, and most of all its sanc-
tions, on the side of peace, so that men and women
of good-will in all countries may have 'leave to live
by no man's leave, underneath the law.' "
Fishek: Tliat's a challenge to those who cite
precedents at every turn . . . Mr. Judson, I sup-
pose each country has its own staff of prosecutors?
Judson: Yes, and by agreement the case was
divided into four parts to prevent duplication.
Our staff' took a major part of the job, since we
initiate<l the plan and were best prepared to carry
it through. Our part involved proving the over-
all Nazi conspiracy, the charges of plotting ag-
gressive war, and the guilt of the individuals and
organizations under indictment. That's why our
case took so long to present. It could have taken
years, of course, if we'd tried to cover everything;
but we finished it in about six weeks.
Fisher : And what goes on now ?
Judson: The Russians have now taken over.
Their job is to prove violations of the laws of
war and crimes against humanity, as well as loot-
ing and economic spoliation in Eastern Europe.
The French who have just finished had the same
assignment in the West.
Fishek: What about the British?
Judson : They have already presented the case
on German treaty violations. They have found
some 87 treaties which the Germans violated in
their various campaigns of aggression.
Fisher: Mr. Horsky. you have been in Niirn-
berg recently . . . can you tell us why Niirnberg
was chosen for the trial ?
HoRSKY : The Army chose it mainly because of
the facilities that were available. But Niirnberg
254
DEPARTMENT OF STATE BULLETS
is ceituinlj' au appropriate place, having been the
headquarters of the Nazi Party for many years.
The Army undoubtedly thought of that too.
Fisher: Didn't our bombers hit Niirnberg
pretty hard?
Horsky: Niirnberg itself is about 95 percent
destroyed — a city of 400,000 reduced to a shambles.
But the courthouse where the trial is going on is
outside the main city, and it suffered only minor
damage from bombing. It is a remarkable build-
ing— Renaissance architecture, but very modern
in construction and huge. The prison where the
defendants are held is part of the same building.
Fisher: They must be very heavily guarded,
especially after the report this week that a plot
had been uncovered to free them.
Horsky : That report has been denied. But the
prisoners are heavily guarded. American MP's
are with them at all times. Since Ley's suicide
they are even watched in their cells at night.
They aren't allowed to exchange notes with de-
fense counsel except through the MP's, who watch
for hidden weapons such as razor blades.
Fisher: What is the courtroom like?
Horsky: It's fairly small. One wall has been
removed to double its size and make more room
for the press and for spectators. It's still too
small, but it's the best that was available. The
equipment is ultramodern. To speed things up,
each seat is fitted with earphones, and by turn-
ing a dial you can get a running ti-anslation of the
testimony in English, French, German, or Rus-
sian. On one wall is a motion-picture screen
where films can be shown as part of the testimony.
And the whole place is brightly lighted so that
news pictures can be taken at any time.
Fisher: It sounds more like a Hollywood set
than a courtroom.
Horsky: You'd think so — and yet the atmos-
phere is completely judicial. When you have been
there for a while, you find that the Court is so well
run under the chairmanship of the British judge.
Lord Justice Lawrence, that it could well be as old
and as venerable as our own Supreme Court.
There is no political oratory, no table-thumping,
though there may be some attempt at it when the
defense takes over. The proceedings are calm, and
you get a sense of their historic importance. It is
a genuine trial, in which men are conscientiously
and successfully trying to get the facts.
Fisher: Now, Mr. Russell has a number of let-
ters here from people who have criticized or com-
mented on various aspects of the trial. So at this
point I'm going to turn you over to the "counsel
for the State Department". Your witness, Mr.
Russell.
Russell: Thanks, Sterling. Mr. Horsky, the
belief that the trial is really just a hoax and the
results are a foi-egone conclusion crops up from
time to time in our mail.
Horsky: That is simply not true. The results
are not a foregone conclusion. I can't speculate
on the results, since I'm associated with the case,
but I can tell you this : The Court's decision will
be based squarely on the evidence presented in that
courtroom.
JuDSON : The type of judges on the bench — some
of the leading jurists of the four nations— guar-
antee that.
Russell : Are the accused given a really fair
chance to defend themselves, Mr. Judson ?
JuDSON : The Court has leaned over backward to
be fair. The defendants are allowed to call any
witnesses they choose, with the Court's approval.
The Court has already tentatively approved over
75 defense requests for witnesses. Ribbentrop
even went so far as to ask for Lord Beuvei'brook,
Lord Londonderry, Lord Kelmsley, and Lord
Vansittart as witnesses. Schacht requested the at-
tendance of an American banker from the Pacific
Coast. The Court approved these requests, with
the provision that they could either send a deposi-
tion in answer to defense questions or appear in
person. The Court reserves only the right to bar
testimony that is irrelevant.
Horsky: The Court's fairness is demonstrated
even better by the defense counsel, which includes
some of Germany's best legal minds. When it was
first announced that the defendants could choose
any lawyers that they wanted, even Nazi lawyers,
few members of the German legal profession
wanted to have anything to do with the case.
Finally two of Judge Biddle's assistants went out
to persuade the lawyers who had been requested by
the defendants to come in. The final result is that
all but five of the defendants have counsel of their
own choosing, the Court having appointed the
others.
Fisher: Mr. Judson, you participated in pre-
senting the Government's brief on General Yama-
FEBRUARY 17. 1946
255
shita's appeal to the U. S. Supreme Court, which
was denied this week. That decision certainly
shows that we believe in fairness, even for our
enemies.
Jttdson : Yes, Mr. Fisher, it does show that, es-
pecially in the care and deliberiition with which
the Supreme Court examined the whole matter.
Pusher: Does that appeal set any precedent
which Goering' and his friends could use?
JuDSON : I don't think so. General Yamashita
was tried by an American Military Court on
American soil — the Philippines; and the appel-
late jurisdiction of the Supreme Court extends
to the Philippines. The Niirnberg trial is dif-
ferent— that's conducted by an international tri-
bunal, of which we are only a part, trying the
case on foreign soil.
Russell: Mr. Horsky, several attorneys have
written to the State Department claiming there
is no precedent for trying the Niirnberg defend-
ants on such charges as waging aggressive war-
fare or "crimes against humanity".
Horsky: The simplest answer to that one, Mr.
Russell, would be to say that in law precedents
must be viade as well as folloined upon occasion.
Justice Jackson has said that we propose here to
punish acts M'hich have been regarded as criminal
since the time of Cain and have been so written in
every civilized code. We may be setting a new
precedent by raising these universally accepted
values to the level of international law, but if we
are to have a civilized world, it's about time we
did so.
Russell: You seem to intimate that there is
another answer to that argument ....
Horsky : Yes. There are precedents for almost
every part of the Niirnberg proceedings. It's
only the process of bringing them together in one
case that is new. Take the matter of defining ag-
gressive warfare. Grotius, the father of interna-
tional law, distinguished between wars of defense
and wars of aggression in the seventeenth century.
For a long time we lost sight of that principle, but
by the time the Nazis came to power it had been
firndy reestablished. In 1924 the Geneva Protocol,
signed by rei^resentatives of 48 nations, declared
that "a war of aggression constitutes ... an
international crime". This was confirmed by the
League of Nations in 1927 and by the Sixth Pan-
American Conference in 1928. And the Briand-
Kellogg Pact of 1928, which we signed along with
Germany, renounced war as an instrument of na-
tional policy. The Niirnberg trial merely con-
firms this concept and considers penalties which
shall be appropriate.
Russell: Mr. Judson, here's a letter from a
New York attorney claiming the Niirnberg pro-
ceedings are illegal because they define crimes
after they have been committed, the old ex post
facto argument.
Judson : Mr. Horsky has already answered
that; all of the acts defined as criminal at Niirn-
berg are well established as criminal in interna-
tional agreements, or in the "laws of war", or in
the codes of civilized nations. We can't let them
go unpunished simply because no mechanism for
punishing them has existed up till now.
Horsky : Germans who built and operated con-
centration camps and murder factories and killed
more than 5,000,000 Jews can't say they didn't
know they were doing wrong. That sort of be-
havior is wrong by any civilized code of law.
Russell: Then there's this letter addressed to
President Truman by a graduate student at Har-
vard, who says that "it is a dangerous jirecedent
to declare the heads of states as criminals". What
about that, Mr. Judson ?
Judson : As far back as World War I, the Ver-
sailles Treaty declared that chiefs of states are
liable to criminal prosecution. I wonder if the
student realizes where this sort of legalistic rea-
soning leads. If you argue that heads of states
are above the law and that the people under them
are not responsible because they are following
orders, then who is guilty? No one.
Russell: That ties in with this letter from a
New York veteran who writes in to say that "mili-
tary men are doing their duty in following orders,
and so cannot be guilty of war crimes". That has
a special bearing in the cases of the military de-
fendants, Doenitz and Raeder of the German Navy
and Keitel and Jodl of the Army.
Horsky : That argument has some weight as
far as the rank and file of the military are con-
cerned. But no charge is lodged against military
men for doing their military duty. But these top
Nazi military men took part in planning not only
aggressive warfare, in clear violation of Ger-
many's treaties, but also other crimes against hu-
manity and against the laws of war. They must
share the guilt for that.
256
DEPARTMENT OF STATE BULLETIN
Russell: I have just one more question, Mr.
Horsky. There is already some criticism in the
jiress that the trial is dragging on nuich too long.
How nnicii longer will it take?
Hoksky: It's hard to say, Mr. Russell. I think
the Russians will finish before the end of this
month, and then the defense will take ovei'. And
let me sound a warning: There may be criticism
here against allowing the defendants to use the
courtroom to get a world audience once more. But
remember that this is a trial and that the Court
will hear all testimony that is relevant to the case.
I tliink we can trust the Court to see that it doesn't
become a sounding board for propaganda.
Fisher: We'll! remember that . . . Now, Mr.
Jud.son, I have one more point. Are the big busi-
ness men who financed Hitler, cooperated with
him in making war, and even used slave labor in
their factories — are these men classed as war crim-
inals?
Horsky: Only a few of the big businessmen
were at the high policy and planning level. Some
of the worst of them will undoubtedly be convicted
of war crimes before the military courts are
through. Military courts run by tlie occupying
])owers in their respective zones are trying cases
every day. I have no doubt that some of Hitler's
business gang will be tried and convicted.
Fisher : To summarize, then, the International
Military Tribunal at Niirnberg is doing a lot more
than merely trying a few Nazi leaders. It is try-
ing the case of humanity versus the Fascist sys-
tem of iidnnnanity and barbarism. It is the in-
dictment of a system, a political and social system
that breeds cruelty and war. This trial serves
notice on future aggressors that crime doesn't
pay ... It also provides a demonstration of de-
mocracy and international cooperation at work.
And the testimony adds up to a liberal education
for Germany and the world on how Fascism op-
erates. Is that right, Mr. Judson?
JuDSON : Yes. And I believe that the Niirnberg
trial will be a great milestone in the history of in-
ternational law. It marks the point at which mur-
der and looting and slavery and wanton devasta-
tion are not only declared illegal, but actually
punished by an international authority. The
Niirnberg trial shows that the law can look for-
ward as well as backward, and that it can grow
and develop along with our changing civilization.
Recognition of
Rumanian Government
[Rele.ised to the press February 5]
In accordance with the agreement in regard
io Rumania reached by the Foreign Ministers of
the Union of Soviet Socialist Republics, the United
Kingdom, and the United States at their meet-
ing in Moscow from December 16 to December
2(), 11)45, a connnission comprised of A. Y. Vy-
shinsky. Ambassador W. Averell Harriman, and
Sir A. Clark Kerr has consulted with King
]\Iichael and members of the present Government
of Rumania in Bucharest. As a result of these
discussions and in fulfilment of the provisions of
the Moscow Agreement, (1) representatives of
the National Peasant Party and the Liberal Party
have been included in the Rumanian Government;
('2) the Government thus reorganized has de-
clared that free and unfettered elections in which
all democratic and anti-Fascist parties will have
the right to take part and put forward candi-
dates will be held as soon as possible on the basis
of universal and secret ballot; and {^) the Gov-
ernment has also given assurances concerning the
grant of freedom of the press, speech, religion,
and association.
In the circumstances, the United States Po-
litical Representative in Rumania, acting under
instructions of the Secretary of State, on Febru-
ary 5, 1946 transmitted to the President of the
Council of Ministers of the Rumanian Govern-
ment the following note :
"The Government of the United States of
America has taken note of the communication of
January 8, 1946. addressed to Ambassador AVil-
liam Avereir Harriman by the President of the
Council of ]\Iinisters, Dr. Petru Groza, enclosing
a declaration of the Riunanian Government, made
at a meeting of the Council of Ministers on Janu-
ary S. According to this declaration the Council
of Ministers considered it indispensable that —
'■''One. General elections should be held in the
shortest time possible.
^'■Two. The freedom of these elections shall be
assured. They shall be held on the basis of uni-
versal sutfrage and secret ballot with the pai-tici-
pation of all democratic and anti-Fascist parties
which shall have the right to present candidates.
FEBRLAKY J7, 1946
251
"77//v'r. Freedom of I lie press, speech, religion
and assembly shall be assured.
"The (iovernineiit of the United States Inis been
adxised of the conversation which took place on
January !>th between the President of the Council
of Ministers, and the American and Bi-itish Ani-
bassadoi's. It has taken note of the oral explana-
tion of the aforementioned declaration which the
President of the Council of Ministers made to the
American and British Ambassadors in this con-
versation to the effect that :
'"''One. All political |)Mrties represented in the
Rumanian iTovernment shall have tlie ri<ilit to par-
ticipate in the elections and to put forward candi-
dates.
"■y'vrr;. The examination of the hallotin"; pro-
cedure and counting of the ballots shall take place
in the presence of representatives of all the politi-
cal parties represented in the Government.
'••Three. All political parties represented in the
Government shall be accorded equitable broad-
casting facilities for the presentation of their polit-
ical views.
"'Four. All political parties represented in the
Government shall have equal rights to jM-int. pub-
ILsli and distribute their own newspapers and polit-
ical publications. Newsprint shall be distributed
to them on a fair and ecpiitable basis.
"Floe. All political parties represented in the
Government shall have the right to organize asso-
ciations and hold meetings. They shall be allowed
premises for this purpose.
"/S'/a?. The Council of Ministers will consult with
the rejiresentatives of the jwlitical parties in order
to reach agreement concerning the grant of free-
dom of the press and speech as well as on questions
relating to the drafting of the electoral law and
the conduct of the elections.
"The Government of the United States has taken
note of the statement contained in the declaration
of the Rumanian Government that the Ministries
of Interior, Justice, Cults and Propaganda will
be charged with the implementation of the deci-
sions contained in the declaration. It understands
from the statement of the President of the Council
that the.se Ministries will not act on their own
responsibility but under the close control of the
Government as a whole. Although the.se Minis-
tries will be charged with the technical imple-
mentation of these decisions, the Rumanian Gov-
ernment as reconstituted will bear the primary re-
sponsibility for their fulfillment and for safe-
guarding the interests of all the participating
parties.
"As for the decision to hold elections in the
shortest time possible, the Government of the
United States confidently expects that arrange-
ments will be undertaken with despatch and would
hope that it may be possible to hold the elections
at the end of April or early in May of this yeai'.
"On the basis of the assurances contained in the
declaration of the Rumanian Government and on
the understanding that the oral statement of the
President of the Council of Ministers, as set forth
iibove, reflects the intentions of the Rumanian
Government, the Government of the United States
is jH'epared to recognize the Government of
Rumania."
U. S. Representative on
Preparatory Commission
of UNESCO
tRt'li'jlsctl til tlif press Fphriuiry 7]
On February 7 Assistant Secretary of State
Benton annoimced the appointment of Donald C.
Stone, Assistant Director of the Bureau of the
Budget, as United States representative on the
Pieparatory Commission of the ITnited Nations
Educational, Scientific and C'ultuial Organiza-
tion (UNESCO) for its meeting in London on
February 11-12, ISMti. Mr. Stone is now in Lon-
don serving as adviser to the United States Dele-
gati(jn to the General Assembly of the LTnited
Nations. He served in the same capacity at the
San Francisco conference. Since Mr. Stone has
consented to serve only for the February 11-12
meeting, a permanent successor to the late Dr.
Grayson N. Kefauver as LTnited States repre-
sentative to UNESCO will be appointed shortly.
Mr. Stone was a member of the United States
Delegation to the London conference in November,
1!)4.5, which di'afted the UNESCO constitution.
He is author of "Administrative Aspects of World
Organization" and other volumes. He is a mem-
ber of the American Political Science Association
and of the Social Science Research Council.
The meeting of the Preparatory Commission on
February 11-12 will consider among other matters
proposals for the future program of activities of
UNESCO and for its form of organization.
258
DEPARTMENT OF STATE BULLETIN
Election of Green H. Hackworth as Judge of
International Court
[Released to the press February 6]
The Security Council and the General Assembly
of the United Nations Organization, voting sepa-
rately but concurrently, voted on February 6 on
the membership of the new International Court
of Justice, which will be composed of 15 judges.
Among the 13 elected on the first ballot is Green
H. Hackworth, Legal Adviser of the Department
of State.
Judge Hackworth has been head of the Legal
Office of the Department since 1925 when he was
selected for that position by Secretary of State
Charles Evans Hughes, subsequently a Judge on
the Permanent Court of International Justice.
Secretary of State Kellogg, also later a Judge on
the same Court, retained him in that position. No
other person in the history of the Department has
been chief of the Legal Office for such a long
period. He entered the Department's Legal Office
in 1916.
Two former Secretaries of State, Henry L.
Stimson and Cordell Hull, as members of the Pei--
manent Court of Arbitration, participated in
nominating Judge Hackworth. Another former
Secretary of State, Edward R. Stettinius, Jr., cast
the vote of the United States in the Security Coun-
cil for Judge Hackworth.
The Permanent Court of International Justice
under the League of Nations and also the new In-
ternational Court of Justice under the United Na-
tions Organization have drawn heavily for judges
on men experienced as Legal Advisers to Foreign
Offices. Upwards of a dozen men who had served
in such capacity were from time to time elected
judges of the old Court. Sir Cecil Hurst, Presi-
dent of the Court from 1934 to 1936, was Legal
Adviser to the British Foreign Office from 1918
to 1929. Judge John Read, Legal Adviser to the
Canadian Ministry of External Affairs, has been
elected to the new Court. Others elected to the
new Court are Professor Charles de Visscher,
Legal Adviser to the Belgian Foreign Office, who
was also a Judge of the Permanent Court of In-
ternational Justice; Professor Jules Basdevant,
Legal Adviser to the French Ministry of Foreign
Affairs; and Abdel Hamid Badawi Pasha, Legal
Adviser to the Egyptian Ministry of Foreign
Affairs.
Judge Hackworth has been assigned to numerous
international conferences, including the Confer-
ence for the Codification of International Law held
at The Hague in 1930, and — more recently — the
Eighth International Conference of American
States in Lima in 1938, the Eighth American Sci-
entific Congress in Washington in 1940, the Sec-
ond Meeting of the Ministers of Foreign Affairs
of the American Republics at Habana in 1940, the
Moscow Conference in 1943, the Dumbarton Oaks
Conversations in 1944, the Inter-American Con-
ference on Problems of War and Peace held in
Mexico City in 1945, the Committee of Jurists,
Washington, D.C.. 1945, the LTnited Nations Con-
ference on International Organization at San
Francisco, 1945, and the first meeting of the United
Nations Organization, held in London, 1946.
At the Dumbaiton Oaks Conference Judge
Hackworth aided in drawing up the original text
of the United Nations Charter. He was made
chairman of the Committee of Jurists, composed
of representatives of some 40 countries which met
in Washington prior to the San Francisco con-
ference and prepared the preliminary draft of a
Statute for the International Court. At San
Francisco he was adviser on both the text of the
Charter and the Statute, participating in the work
of Committee IV/1 (Judicial Organization —
International Court of Justice) which recom-
mended the adoption of the final text of the Stat-
ute. He was also chairman of the Advisory Com-
mittee of Jurists, a connnittee composed of a legal
representative of each of the "Big Five'' powers
and one Spanish-speaking representative, which
gave final consideration from a legal standpoint
to the various texts concluded.
Judge Hackworth is a native of Kentucky. He
I'eceived his B.A. degree at Valparaiso University
and his LL.B at Georgetown, doing graduate work
at George Washington University. He is the
author of the recently published Digest of Inter-
national Lam in eight volumes.
FEBRVARY 17, 1946
259
Plans for Army- Navy- State
College
[ Released to the press by the Army, Navy, and
State Departments February 4]
High-rankinp- officers of the Arm_v, Air Force,
uihI Navy, and of the Foreign Service and Depart-
ment of State, will study joint problems of Na-
tional Defense in a newly created college, which
will be tlie highest level educational institution of
the Armed Forces. ■>
Organized under the authority of the Joint
Chiefs of Staff, this college will be the first ever
established to promote close integration between
the highest levels of the armed services and the
State Department.
The student body will be carefully ,selected from
the key positions of each department. After com-
l^leting the course, which lasts about 10 months,
the students of each class will return to their in-
dividual duties.
The first class will start on September 3, 1946,
and continue to June 21, 1947, with an enrollment
of at least 100 students. The college will be
situated at the site of the Army War College,
Washington, D.C.
Among the subjects to be studied will be the
atomic bomb and other new weapons and their
effect on the trend of warfare. Other develop-
ments in scientific research will be taught by mili-
tary and civilian specialists.
The course will include a thorough study of
the foreign policies of the United States and other
major powers. Special attention will be given to
the United Nations Organization and to other
means of preventing war.
Major "home-front" problenis, such as indus-
trial production, communication, transportation,
and mobilization of manpower, are to be given
considerable research.
All the armed services in the highest echelons
will study war preparedness from a "joint" point
of view for the first time in history. This will
include an analysis of the role of air and sea
power and ground forces in future operations.
Joint intelligence, communications, logistics, air
operations, and amphibious warfare will be studied
under the general course, "Joint Operations".
An analytical study will be made of operations
in World War II. Particular emphasis will be
placed on the problems and techniques of the sev-
eral theaters — -the mistakes and the les.sons learned.
The Conunandant of the new college is Vice Ad-
miral Harry W. Hill, U. S. Navy, former Com-
mander of the Fifth Amphibious Force and at pres-
ent Commandant of the Army and Navy Staff
College, Washington, D.C. Deputy Commandants
of the new college are Major General Alfreil M.
Gruenther, U. S. Army, at present Deputy Com-
mandant of the Army and Navy Staff College, and
Brigadier General T. H. Landon, Army Air Force,
now Chief of the Air Section of the Army and
Navy Staff College. State Department participa-
tion in the new college is under the direction of
Assistant Secretary of State Donald Russell.
Members of the faculty will be drawn chiefly
from all of the armed services and the State De-
pai'tment. Prominent scientists, professors, and
otlier civilian specialists will be invited to deliver
lectures. Instruction will be principally by the
lecture .system, with connnittee studies and re-
ports and analyses by individual students. In the
portion of tiie course known as "Conduct of War"
extensive use will be made of problems in which
realistic situations will be assumed and solutions
recpiired by student groups.
Certain parts of the course will be held in con-
junction witli the Joint Army-Navy Industrial
College, of which Brigadier General Donald A.
Armstrong, U. S. Army, is Conunandant.
In the preparation of the detailed curriculum
close liaison will be maintained with the Naval War
College, Newport, Ehode Island, and the higher
educational institutions of the Army Ground and
Service Forces, Fort Leavenworth, Kansas, and
the Army Air Force, Maxwell Field, Alabama.
The Proclaimed List
[Released to the press February 8]
The Secretary of State, acting in conjunction
with the Secretary of Treasury, the Attorney Gen-
eral, the Seci'etary of Commerce, and the Acting
Director of the Office of Inter-American Affairs,
today issued Supplement 1 to Revision X of the
Proclaimed List of Certain Blocked Nationals.
Part I of Cumulative Supplement No. 1 con-
tains nine additional listings in the other Ameri-
can republics and 32 deletions; Part II contains
43 additional listings outside the American re-
publics and 98 deletions.
260
DEPARTMENT OF STATE BULLETIN^
New York Publishers
Endorse Foreign
Information Program
[Released ti> the press February S]
7'he Office of the Executive Secretary of the New
York State PuhJisliers Association on Fehruary 8
sent to Secrctd/-)/ liyriics the folJoioing resolution :
Having been miule aware, by Mi-. Wilbur Fi)r-
rest, tlirough the account of the iindings of the
American Society of Newspaper Editors" Commit-
tee wliich traveled around the world, of the need
for an information program abroad which will give
other peoples "a true and fair picture of American
life and of the aims and policies of the United
States Government" and having heard of the pro-
gram of the Department of State aimed to accom-
plish this end :
The New York State Publishers Association
(members assembled liere in their Twenty-Fifth
Annual Conve}ition) go on record as endorsing
this program — as being an essential part of our
foreign policy and in our opinion one of the most
constructive steps that can be taken in modern-
day diplomacy.
Journalists To Be Guests of
Virginia Press Association
[Released to the press February i) i
A plan to invite foreign newspapermen to be
guests and co-workers on a number of Virginia
newspapers has been presented to the Office of
International Information and Cultural Affairs,
Assistant Secretary of State Benton announced
on February 9.
The proposal was placed before State Depart-
ment rejD resent atives by the officers of the Virginia
Press Association headed l)y the president. Miss
Daphne L. Dailey, of Bowling Green, Virginia.
The group conferring at the State Department
also includes : Tom Hanes, vice president and man-
aging editor of the Norfolk (Va.) Ledger-Dis-
patch; Josiah P. Rowe, Jr., member of the execu-
tive committee and editor of the Fredericksburg
(Va.) Free Lance-Star; A. Robbins, Jr., member
of the executive comniittee and editor of the Hope-
well (Va.) Newx; and Howard AV. Palmer, seci-e-
tary-manager, Richmond, Virginia.
"The action of the Virginia Press Association in
initiating this plan to acquaint foreign journalists
with our country merits the heartiest endorsement
and fullest support," Mr. Benton stated. "For a
long time we have felt the need to spread a first-
hand knowledge of the American way of life
throughout the world by having writers, techni-
cians, artists, and students actually share the work,
pleasures, and cultural interests of their American
counterparts. The Virginia Press Association
inoposal is notable for the planning, thought, and
financial contributions which Virginia newspaper-
men and women voluntarily have devoted to it.
The Office of International Information and Cul-
tural Affairs will do all it can to assist the Vir-
ginia Press Association in carrying out its pro-
posal. I sincerely hope this will be the forerunner
of similar projects sponsored by other press
groups in all sections of the United States.'"
As early as September 15, 1945 the executive
committee of the Virginia Press Association pre-
sented a plan to the entire membership for invit-
ing foreign journalists to accept temporary staff
positions. Thirty-three papers announced that
they were sufficiently interested in this project to •
share in the costs. The VPA plan provides for
foreign journalists to accompany members of
newspaper staffs on regular outside assignments.
It is planned for them to become thoroughly fa-
miliar with desk and editorial procedure and to
participate fully in the life of the comnmnit}^ for
a period of approximately 12 weeks. Problems
being discussed with State Depai'tment officials in
relation to the plan are mainly those of selecting
the foreign journalists who are to participate in
the program and arranging for their transporta-
tion to this country.
The president. Daphne Dailey, disclosed that in-
quiries from press groups in other States express
interest in the plan. "If our experience proves
successful, I am sure other States will take similar
action,"' she said. "We felt that one of the best
ways to correct distorted impressions about our
country and to promote international understand-
ing was to have foreign newspapermen actually
work with us and live among us. We are highly
pleased with the cooperative attitude displayed by
the State Department officials to whom we have
talked, and we confidently expect that we can ar-
range to have the first group of foreign news-
papermen become guests on our staffs sometime
this fall.""
FEBRIARY 17. 1946
261
Resumption of Private Trade
With Italy
[Released to tlie press February 7]
The Italian Gt)veniment has announced in Rome
tliat effective February 15, 1946 private trade be-
tween Italy and all other countries, except Ger-
many and Japan, will be resumed. Consequently,
llie Italian National Institute for Forei<>n Trade
(ICE) will no longer be an obligatory channel for
trade with allied countries, and private firms will
hereafter be able to trade direct. The United
^States Government recently indicated that United
States firms doing business with Italy were no
longer required to channel their trade through the
U. S. Connnercial Company.
The Italian Government pointed out that for
private trade so resmned there will remain in effect
restrictions and controls exercised by the Ministry
of P'oreign Trade and required by the general
foreign exchange position, the supply situation of
their country, and by the terms of the commercial
and payments agreements. Such trade will also
be subject to the "Pioclaimed List" which has been
adopted by the Italian Government. Italian au-
thorities also stated that as a result of interna-
tional agreements, the movement of goods included
in "reserved commodity lists" must be authorized
in advance by the appropriate economic agencies
of the United Nations.
Regulations to which private firms must con-
form in foreign trade operations will be set forth
in a j)ublication shortly to be distributed by the
Italian Ministry of Foreign Trade.
On December 11, 1945 the United States De-
jiartment of Connnerce announced that, except in
the case of certain commodities in short supply,
American exporters were no longer required to
obtain specific export licenses for trade with Italy,
while under the Treasury Department's General
License No. 94, effective December 7, 1945, all
freezing controls were removed over current trans-
actions with most countries, including Italy.
' BurxETiN of Aug. 12. lOJ."), II. 222 : Executive Agreement
Serie.s 472.
' See Bulletin of Dec. 23. 194.-|. p. 1022.
Prosecution of War Criminals
According to information received from the
British Foreign Office, which is depositary for the
agreement between the United States, the United
Kingdom, the Union of Soviet Socialist Republics,
and France for the prosecution and punishment
of the major war criminals of the European Axis,
signed at London August 8, 1945,' the following
countries have acceded to that agreement: Aus-
tralia, Belgium, Czechoslovakia, Denmark. Ethi-
opia. Greece, Haiti. Honduras, Luxembourg,
Netherlands. New Zealand, Norway. Panama. Po-
land, Venezuela, and Yugoslavia.
Discussion on Customs
Procedure
Pursuant to the announcement made in Ottawa
and Washington on December 21, a joint commit-
tee of United States and Canadian officials has
met in Washington to exchange information and
examine problems relating to custom.s procedure at
the international border.'- It is the purpose of
these officials to find out whether improvements in
administrative customs practices could be recom-
mended which would simplify the movement of
l^assengers, goods, and vehicles across the border.
It is intended that further meetings will be held
from time to time so that there may be a regular
exchange of infonnation and opinions. These
officials'are not dealing with questions of policy or
with any proposed chaitges in the statutes of
either country, but rather with matters of customs
administration where adjustments may be feasible
which will be of benefit to both countries.
OPIUM — ('(/iithiiiiil from piujc H'l.
which the Government of Iran ought to be jjre-
pared to take at once, pending the sununoning
of a conference to draft a new Convention. Ac-
cordingly the appropriate action is being taken
to support the American representations in this
sense and also to suggest to the Government of
Iran the desirability of continuing to take part
in future international discussions relating to
opium.
2nd Augmt, 1945.
262
DEPARTMENT OF STATE BULLETIN
Issuance of Death Certificates
by Czechoslovakia
[Released to the press Februav.v 5]
The American Embassy at Praha, Czechoslo-
vakia, has informed the Department of State that
it has received numerons letters from private per-
sons in the United States requesting information
regarding the regulations for the issuance of death
certificates for persons who died in concentration
camps which were established in Czechoslovak
teriitory by the former German Government.
The American Embassy states that it was noti-
fied by the Repatriation Ofhce of the Czechoslo-
vak Ministry of Social Welfare that it is the
official organ for issuing death certificates for
persons who died at such camps as Terezin. Ap-
plications for such documents should give the
name of the deceased and such data as date and
place of birth, last permanent residence, probable
date of death, and such other information as might
be available and helpful. Communications may be
addressed direct to "Eepatricni odbor pfi mini-
sterstvu ochrany praee a socialni pece, Praha II,
Hybei'nska 2, Czechoslovakia'". The Embassy
suggests that the most expeditious means of com-
nuuiication with the above-mentioned office is by
direct airmail service.
Appointment of U. S.
Representatives to Monetary
Fund and International Bank
On February (i, 1945 the Senate confirmed the
following nominations of United States represent-
atives to the International Monetary Fund and
International Bank for Reconstruction and
Development :
Fred M. Vinson to be United States Governor
of the International Monetary Fund and United
States Governor of the International Bank for Re-
construction and Development for a term of five
years.
William L. Clayton to be United States Alter-
nate Governor of the International Monetary
Fund and United States Alternate Governor of
the International Bank for Reconstruction and
Development for a term of five years.
Harry D. White to be United States Executive
Director of tlie International Monetary Fund for
a term of two years and until his successor has
been appointed.
Emilio G. Collado to be United States Execu-
tive Director of the International Bank for Re-
construction and Development for a term of two
years and until liis successor has been appointed.
CULTURAL CENTERS— Contimied from page 232.
remained at half-mast before the institute, and
classes were suspended.
Achievements
As a result of these varied programs the im-
portance of the center to the community has been
establislied.
The Centro Venezolano- Americano in Caracas
provides an example of the development of a cul-
tural center during a one-year period. With little
change in its staff of 1 director, 9 teachers, and 5
administrative employees, its student attendance
increased from 206 to 471 ; the library grew from
1,585 volumes to 2,464; monthly circulation in-
creased from 146 to 911 ; average monthly attend-
ance at concerts, exhibits, and movies trebled, 515
to 1,560.
By charging moderate fees for English classes
and supplementing that income with membership
dues and contributions from business firms and
national governments, the centers have maintained
a high standard of financial independence. Larger
centers pay all their local operating costs out of
their locally derived income; on an average the
centers pay 80 percent of their local expenses.
During 1943 the institutes raised over $153,000,
and during 1944 over $171,000, 80 percent of local
expenses. During these two years the State
Department's subvention of $202,700 included :
$110,000 for American directors and teachers,
$50,000 for American books and other cultural
materials, and $42,700 to aid in meeting local
expenses.
The success of the cultural centers, as evidenced
by the already large and rapidly increasing num-
ber of Americans and local citizens who flock to
their activities, is a direct result of the spontaneous
interest of their founders and the truly cooperative
spirit of their maintenance.
FEBRUARY 17, 1946
263
Interim Air Rights with
Belgium
[Released to the press February 5]
The Department of State announced on Febru-
ary 5 that interim air rights liave been granted
reciprocally between the United States and Bel-
gium through notes dated February 1, 1946 ex-
changed between Jefferson Patterson, American
Charge d'Affaires at Brussels, and Herman Vos,
the Acting Minister for Foreign Affairs and
Foreign Commerce of Belgium.
The interim arrangement, which is expected to
be superseded by a formal bilateral air transport
agreement, is to extend for an initial period of
three months beginning February 1, renewable
automatically thereafter but subject to denuncia-
tion on one month's notice after the expiration of
the initial period.
Under the above arrangement Pan American
Airways, which is the airline authorized by the
Civil Aeronautics Board to serve Brussels, may
inaugurate service over the route from the United
States to London and Brussels and thence to India
via intermediate points, after qualifying before
the Belgian authorities. Reciprocal privileges to
a Belgian airline are granted on a route from Brus-
sels to New York. The so-called "fifth freedom"
traffic privileges are included in the provisional
agreement.
Visit of Chinese Playwright
[Released to the press February 5]
Wan Chai-pao, whose pen iiame is Tsao Yu,
well-known Chinese playwright, will come to the
United States in March for a year's stay at the
invitation of the Department of State. This will
be Mr. Wan's first visit to America.
Based on life in modern China in its transi-
tion period, his plays are reported to be widely
popular with both the play-going and play-read-
ing i^ublic in China where they have been and
are still being produced over and over again. His
Thu7ider and Rain, The Sun Comes Up, The Pe-
king Man, and The Family have been translated
into English.
Visit of Chinese Writer
[Released to the press February .1]
Lao Sheh (Shu Sheh-yu), author of Rickshaw
Boy, a current best-seller, has accepted the invi-
tation of the Department of State to visit the
United States and will arrive in the early spring
for a year's stay. Mr. Shu is a well-known writer
of Chinese novels and short stories, among which
are Biography of Nu Tien. Tsi, Little Po's Birth-
day, Ying Hai Tsi, and a play Nation First, but
Americans know him best as Lau Shaw, the pen
name under which the translation of Rickshaw
Boy was published in this country.
Cuban Educator Accepts
Visiting Professorship at
Howard University
[Released to the press January 24]
Angel Suarez-Rocabruna, Cuban man of letters
and city-planner, has accepted a visiting profes-
sorship for the winter term at Howard LTniversity,
where he will lecture on the development of Cuban
literature from the epoch of discovery and con-
quest to the present day.
Dr. Suarez-Rocabruna is a section chief of the
City Planning Department of Habana and an ad-
viser to that city's Department of Culture. He
has represented the municipality of Habana at
the unveiling of the bust of Maceo at Howard Uni-
versity, the Placido centenary ceremonies in New
York, and the celebration of the Maceo centenary
at the Pan American Union in Washington. His
present visit to the United States is sponsored
jointly by Howard University and the Department
of State.
The Foreign Service
Consular Offices
The American Consulate at Poznan, Poland, was estab-
li.shed on January 26, 1946.
The American Consulate at Antilla, Cuba, was closed on
February 1, 1946.
264
DEPARTMENT OF STATE BULLETIN
The Department
The Congress
Presidential Authority for the Review
of Censorship Files
I With the cessation of lidstilities in Euniiie and Japan,
the Office of Censoi-shiii ceased operations and its files
were transferred to the National Archives, thus making
presidential authority essential to a review of those flies
by a representative of the Department.
II Mr. Walter E. Jessup. A.ssistant Security Officer of
the Department, Division of Foreign Activity Correlation,
has been duly authorized by the President to review this
censorship material ; all other officers of the Department
should therefore confer with Mr. Jessup whenever such a
review is officially necessary.
Puhlication of Anglo-American
Caribbean Commission
Ati ExiH'riiiirntul Fishery Surrey in Trinidad,
'J'ohiiyo, and British fliiiann With liecoin mended
Improrements in Methadx and Gear. Anglo-
American Caribbean Connnission, Washington,
D. C, l'.!45. iv, 13tJ pp.
The results are presented of an exploratory fish-
ery survey undertalcen in 1044 by the Govern-
ments of the United States of America and the
United Kingdom in the waters of Trinidad, Brit-
ish West Indies, and British Guiana. An outline
is given of present knowledge of the oceanog-
raphy, topography, and fish population groups of
the area covered by the survey. The field work
of the survey was carried out in a United States
Pacific Coast purse-seine vessel, and an account
is given of each of the following exi)eriniental
fishing activities: Otter trawling, purse seining,
drift gill and trammel netting, trolling, shark
lines, and the use of deep-sea handlines and long-
lines. In eacli instance the gear which proved
effective under experimental conditions is de-
scribed, followed by detailed specifications of
otter trawling, gill netting, trammel netting, and
trolling geai' whi<'h should prove immediately
profitable mider commercial conditions. Further
experimental Held work is reconunended for purse
seining, for which specifications of a scaled-
down Pacific Coast type are given.
Copies of the report may be obtained from the
Anglo-American Caribbean Commission, r)epart-
ment of State, Washington 25, D.C.
Elimination of German Resources for War: Hearings
Before a Subcommittee of the Conuniftee on Military Af-
fairs, United States Senate, Seventy-ninth Congress, first
session, pursuant to S. Res. 107 (78th Congress) and S.
Res. 146 (79th Congress), authorizing a study of War
Mobilization Problems. Part 9, December 20, 194.i. Tes-
timony of the Foreign Economic Administration, ii,
28 pp.
Atomic Energy : Hearin,gs Before the Special Com-
mittee on Atomic Energy, United States Senate, Seventy-
ninth Congress, first session, pursuant to S. Res. 179, a
resolution creating a special committee to investigate
problems relating to the development, use, and control of
atomic energy. Part 2, I)ecend)er .5, 6, 10, and 12, 1945.
iii, 178 pp. Part 3, December 13, 14, 19, and 20, 1945. iii,
90 pp.
Study of Problems Relating to Immigration and De-
portation and other Matters : Hearings Before Subcom-
mittee No. I of the Committee on Immigration and Nat-
uralization. House of Representatives, Sevent.v-ninth Con-
gress, first session, pursuant to H. Res. 52. a resolution
authorizing study of immigration and naturalization laws.
Part 4. August 24 and 2."). 1945. iii, 54 pp. Part 5, Au-
gust 27, 28. 31, 1945. iii, 80 pp.
Papers Relating to the Foreign Relations of the United
States: 1930 (In Three Volumes), Volumes I, II, III.
71st Cong.. H.Doe. 825.
Trial of German War Criminals : Opening Address by
Robert H. Jackson, Representative and Chief of Counsel
for the United States of America in the Trial of German
War Criminals, together with a copy of the indictment
against the tsaid German War Criminals. Presented by
Mr. Gutfey, December 15 (legislative day, October 29).
1945.— Ordered to he printed. S.Doc. 129, 79th Cong.
92 pp.
Foreign Service Retirement and Disability System.
Message From the President of the United States trans-
mitting a report, by the Acting Secretary of State, show-
ing all receipts and disbursements on account of refunds,
allowances, and annuities for the fiscal year ended June
3(1. 1945. in connection with the foreign service i-etirement
and disability system. H.Doc. 416, 79th Cong. 2 pp.
Election of President and Presidential Succession.
S.Rept. 892, 79th Cong., To accompany S.Con. Res. .50.
2 pp.
Amending the First War Powers Act of 1941 (Return
of Alien I'roperty to Persons Not Hostile to the United
States). S. Rept. 920, 79th Cong.. To accompany H.R.
4.571. 11 pp. [Favorable report.]
.\uthorizing the Use of Naval Vessels To Determine the
Effect of Atomic AVeapons Upon Such Vessels. H. Rept.
1514. 79th Cong.. To accompany II.J. Re.s. 307. 4 pp.
I [''avorable rejiort.]
PUBLISHED WITH APPROVAL OF DIRECTOR OF BUREAU OF THE BUDGET
11- S. GOVeRNMENT PRINTING OFFICE: 1946
THE DEPARTMENT OF STATE
VOL. XIV, m. 347
FEBRUARY 24, 1946
U.S.-U.K. Economic and Financial Agreements
By THE SBOREI'ARY OF STATE
Yalta Agreement on the Knriles
U.S. Memorandum on Argentine Sitnation
Dentsclie Anslandspropaganda
Article by SAXTON BRADFORD
For complete coirtents
see inside cover
Vl^NT o^
-*tes o*^
THE DEPARTMENT OF STATE
BULLETIN
f^OENT OF DOCUMENlt
>3 1946
^»AWNT o*.
VoL.XIV»No.347»
Publication 247 I
February 24, 1946
For sale by the Superintendenl of Documents
U. S. Government Printing OfiBce
Washington 25, D. C.
Subscription:
52 isBuea, $3.50; single copy, 10 cents
Special offer: 13 weeks for $1.00
(renewable only on yearly basis)
The Departmenl o/ State BULLETIN,
a weekly publication compiled and
edited in the Division of Research an d
Publication, Office of Public Affairs,
prorirfes the public and interested
agencies of the Government with
information on developments in the
fielil of foreign relations and on the
work of the Department of Stale and
the Foreign Service. The BULLETIN
includes press releases on foreign
policy issued by the }f' hite House and
the Department, and statements and
ad€lresses made by the President and
by the Secretary of State and other
officers of the Department, as well as
special articles on various phases of
international affairs and thefunctions
of the Department. Information con-
cerning treaties and international
agreemen ts to which the United States
is or may become a party and treaties
of general international interest is
inchuted.
Publications of the Department, cu-
mulative lists of which are published
at the en€l of each quarter, as well as
legislative material in the field of inter-
national relations, are listed curren tly.
Contents
Page
U. S.-U. K. Economic and Financial A^rccmtMits:
Address by the Secretary of State 267
Address by Assistant Secretary Clayton .... 271
General Assembly of the United Nations: Report
from London to the Office of Public Affairs,
Department ol State . : . . . . 274
Deutsche Auslandspropaganda.
Article by Saxton Bradford 278
*Yalta Agreement on the Kuriles:
Te.xt of the Agreement 282
Background Remarks on the Agreement .... 282
*La\v on Vesting and Marshaling of German External
Assets 283
Consultation Among the American Republics With
Respect to the Argentine Situation: Excerpts
from Memorandum of the U. S. Govei'nment .
International Organizations and Conferences
Calendar of Meet in ^.s
Activities and Developments:
The General Assembly
Far Eastern Commission
*United Maritime Authority Council
Second Session of the West Indian Conference
UNRRA Fourth Council Meeting
The Record of the Week
Our Foreign Policy and Its Underlying Principles and Ideals.
By Assistant Secretary Braden
Relations With the Yemen Proposed
Organization of U. S. Mission To Observe Elections in
Greece
Recognition of Rumanian Government:
Exchange of Notes Between tlie U. S. and Rumanian
Governments
Philippine Foreign Affairs Training Program
V. S. Interest in Italian Elections. Statement liy the Secre-
tary of State
Death of Philip O. Chalmers. Statement by the Secretary
of State
*Sanitary Convention, 1938; Brazil
Some Steps in the Recdnstruction of Europe. By Willard L.
Thorp
*Results of the Anglo-American Civil Aviation Conference:
Joint Statement by the U.K. and U.S. Delegations . . .
*Air-Trarisport Agreement: Ignited States and Turkey . . ,
Resignation of Ambassador Harriman
Foreign Service Examinations Sclieduled
"the defenses of peace"
Publications of the Dejiartment of State
•Treaty Information.
285
290
291
291
292
292
293
294
297
297
299
299
299
300
302
306
306
306
307
308
U.S.-U.K. Economic and Financial Agreements
By THE SECRETARY OF STATE
Mii. C'liAimt.vN AND Ladies and Gentlemen:
I am lionored by the invitation to speak
to you this evening. Tlie Foreign Policy Associa-
tion has performed a great service to this country.
It has persistently and effectively helped to im-
press upon all of us how closely the future of the
Ignited States is bound to the future of the world.
I am sure that had the members of this asso-
ciation traveled to London last month as 1 did,
they would have shared my deep satisfaction with
what I saw and heard there. It was a luippy privi-
lege for me to declare to tlie (ieneral Assembly, on
behalf of the (ioveniment and people of the ITnited
States, that we are whole-heartedly committed to
the success of the United Nations.*
The newspapers and the radio broadcasts have
been tilled with accounts of the disputes which
have been aired these past weelvs in the Security
Council. Iran and Greece have been the subject
of direct and frank debate, particularly between
the representative of the Soviet Union and the
repre.sentative of Great Britain. I cannot feel that
the open discussion of these disagreements is cause
for alarm. Quite the contrary. Open discussion
has not preventetl agreement with respect to the
disputes over Iran and Greece.
Yet the public expression of these divergent
viewpoints reminds us of the difficulties which
stand in the way of whole-hearted international
cooperation. "We may wish that these difficulties
did not exist, but we will be ill-advised to ignore
their stuljborn presence.
I wish to talk to you this evening about one of
the most important of these difficulties and about
our plan for helping to remove it. The problem I
have in mind is the economic and financial dilemma
into which the war has plunged Great Britain.
Tlie partial solution I am thinking about is the
Anglo-American economic and financial agree-
ments.
In the course of the discussion and debate
that these agreements have evoked, the nature
of the problem facing Great Britain has become
familiar to all of us.
Before the war the Biitish people liought about
a fifth of all the goods tliat were exported by all
the other countries in world trade. They were
our largest single customer. They were the larg-
est customer of many other countries. They paid
in goods, in the income from their overseas invest-
ments, and in the earnings of their merchant fleet.
Now, as they emerge from the war in which
they suffered so bitterly, their exports are down
to about a third of what they were in 1939. Many
of their plants producing goods for export have
been bombed out of existence. Many foreign in-
vestments have been sold and foi'eign properties
damaged or destroyed. Much of Britain's mer-
chant fleet has been sunk.
The British borrowed heavily abroad. At the
same time thej' sacrificed their export trade and
converted their entire economy to war. Now,
Britain must reconvert, and on a much larger
scale than the United States. Britain must re-
construct, which we do not have to do.
But unless credit is extended to the British, they
cannot purchase abroad the goods and equipment
they need in order to reconvert and to recon-
struct. LTntil this is do)ie, Britain's purchases
cannot reach the old volume, much less an ex-
panded volume. Such a situation cannot cure
itself. Yet it is essential for the economic health
of the world that it be cured quickly.
An address made before the Foreign I'oll<y As.sociation
in New York, N. Y.. on Fell. 11, l)roa<k-iist over the net-
work of the American Hroadcasting System, and released
to the press on the same date.
' See BDXLEnriN of .Tan. 27, 1!I4G, ii. S". ' '
267
268
DEPARTMENT OF STATE BULLETIN
No one imagines that the financial agreements
alone will remedy this situation. Whether or not
the Congress approves the agreements, the British
[)eople face a lean jieriod that will continue for
some years. But the financial agreements will
permit the British to buy food and raw mate-
rials— the first things they need in the effort to
restore their economy.
Here in the United States we are in mid-passage
in our reconversion. Despite the pressure of
events abroad, even a Secretary of State is aware
of tlie storms that delay our passage. Cei'tainly
a Secretary of State who was formerly Director
of War Mobilization is uncomfortably familiar
with the thorny character of price and wage dis-
putes.
But as Secretary (»f State I suggest to you that
when we have settled the industrial disputes and
other problems that are crowding in on us so in-
sistently, we shall become more keenly aware that
our ultimate prospei'ity heavily depends upon
whether the economy of the world is free or in
chains.
The lawsuits which the Suj^reme Court is called
upon to decide continue to reveal a variety of at-
tempts by the several States to burden or restrict
interstate commerce. These suggest that we have
not fully learned our lesson even at home.
But no American seriously contends in this day
and age that the prosperity of the wheat farmer
of the Dakotas, the cotton grower of the Caro-
linas, or the market gardener of California is not
directly linked to that of the miner in Pennsyl-
vania and the manufacturer in New York.
We take for granted the interdependence of
the national economy. The interdependence of
the world economy is less apparent. But it is
quite as real. Prosperity here and abroad re-
quires the expansion both of x^roductiou and of
markets.
We know that we in the United States cannot
reach and maintain the high level of employment
we have set as our goal unless the outlets for our
production are larger than they have ever been
before in peacetime.
Thus Britain's difficulties in returning to nor-
mal economic intercourse are of direct concern to
us. The economic agreements we have draftetl to
help meet those difficulties have several objectives.
We have acted first to settle the war account.
Tho.se who remember how the last war's debts
haunted the world will welcome the expeditious
flisposal of this issue.
Our claims on Britain and Bi-itain's claims on
us for matei-ials delivered under lend-lease and
reverse lend-lease and consumed before V-J Day
have been disposed of. Tlie victory was the
payment we sought for these goods.
But Britain will pay us for American surpluses
remaining in the British Isles. A midtitude of
claims running both ways has been considered, a
balance struck, and Britain has agreed to pay, with
interest and over 50 years, the sum of 6'50 million
dollars.
The provision of the agreements which has com-
manded the greatest public attention is tlie exten-
sion of a line of credit to the United Kingdom
totaling $3,750,000,000. This credit may be drawn
upon at any time from the date Congress approves
the loan agreement until December 31, 1951. It
will, of course, be used gradually.
The sums actually borrowed are to be repaid
during the 50-year period beginning in 1951, with
interest at 2 i>ercent. The United Kingdom may
request the United States to waive the collection
of interest in any year in which British income
from sales abroad and other sources is not enough
to enable Great Britain to bring in imports at the
average pre-war level. This is a wise provision
in a contract of such long duration. It is not the
cour.se of wisdom to insist on interest payments
when world-trade conditions may sometimes make
such payments impossible.
That, briefly, is the loan. To a transaction of
this magnitude it is quite natural that objections
should be raised.
I have heard it said, for example, that the credit
will contribute to inflation in this country. If a
sum of this size were all to be drawn at once and
spent for scarce consumer's goods, it would indeed
be serious. But that will not occur. The British
certainly will conserve the funds, drawing from
them only as needed between now and 1951.
They will not spend it for consumer-manufac-
tured goods because these goods they make them-
selves. Thej' will spend it for what they must
buy abroad — food and basic raw materials.
Some of the things they buy — for instance, cot-
ton— already are in surplus in this country, and
other items doubtless will be in snrjjlus before 1951.
We shall soon be glad of British markets for lard,
apples, tobacco, and no doubt also for wheat after I
the present shortage has been relieved.
FEBRUARY 24, 1946
269
Some of tlie credit will he s|)ent in other coun-
tries, especially in Sontli America. These coun-
tries will thus acquire additional dollars which
they can use for purchases here.
What the 8outh Americans wish to buy from
us is mainly capital eciuipmeTit : machine tools,
diesel engines, generators, and machinei'y of every
kind. The war enormously expanded our pro-
ductive capacity for equipment of this kind, and
increased foreign orders will be warmly welcomed.
The pressure for inflation in this country is
great. I woulil be the last to minimize the dan-
ger. But the answer lies primarily in speedy,
large-scale production of the things of which we
are short. Restricting the ability of foreign pur-
chasers to buy the things we have in abundance
only adds an additional handicap to our economy.
Another objection has been suggested by his-
tory. This is the assertion that the credit will
never be repaid. It shoidd be realized, however,
that the circumstances surrounding this credit are
entirely diiferent from those applying to the
British debt after the first World War.
First: That debt was incurred for materials
largely destroyed in the fighting — goods that cre-
ated no new wealth or earning power. This time
we are not treating burned-o)it tanks as a com-
mercial obligation. This credit is for new goods
which will help create new production and new
wealth. Like any good commercial loan, it helps
create the means of its own payment.
Second: The earlier British debt was larger
than this credit, and the interest rate was higher.
The British made full payments all through the
1920's, and continued them until the great depres-
sion caused the moratorium of 1931. Even after
that they made token payments in 1932 and 1933.
Altogether they paid us over 2 billion dollars, prin-
cipal and interest. That is not a record of inten-
tional default.
Third: Last time we raised our tariffs in 1921,
again in 1922, and again in 1930. The British
could only pay us back by selling goods to us, and
yet by increased tariff duties we made it harder
and harder for British goods to enter this country.
Even more important, last time we and the rest
of the world let the great dejiression happen.
AVhen it happened goods .stopped moving and
earnings collapsed. It was that, more than any-
thing else, which stopped the payments on the
British debt.
This time we are firmly set on a difi'erent course.
^^'e are not going to raise taritfs. The settled pol-
icy of Congress and of the President for more than
12 years has been and is to seek their gradual re-
duction by negotiations under the Trade Agree-
ments Act. We are seeking to expand trade, not
reduce it. And we and other countries are going
to take steps to avoid a repetition of 1929.
If business activity remains high and trade
large, Great Britain should have little difficulty
meeting the agreed payments. If we permit an-
other great depression to occur, we shall lose
much larger values than the instalments on this
credit.
The objection also is heard that, while this
British credit is justified, it should not be granted
because it will require us to make similar loans
to other governments. Witli this argument I
disagree.
This credit is not a precedent for anything. It
is unique because the position of Britain in world
trade, her need for working capital, and' the
effect upon world trade of her acquiring that
working capital, all are unique.
Several countries do need capital to recon-
struct and improve their industry and transport.
The Export-Import Bank has made loans for
the.se purpo.ses under its existing powers and
will make others, at least through 1946. By
that time the International Bank for Reconstruc-
tion and Development, set up by the 34 nations
signing the Bretton Woods agreement, should be
ready to take over much of this activity.
Nor could a loan precedent be established by
an agreement which is far more than an exten-
sion of credit; by an agreement which is an
TUiderstanding on over-all commercial jiolicy: by
an agreement which thus becomes a joint advance
by two of the world's largest economic imits on
the general pi-oblems of world trade.
I say that the agreements provide far more
than an extension of credit, because they con-
tain a pledge on Britain's part to remove as
rapidly as possible the emergency controls over
foreign exchange, to abolish the so-called "ster-
ling area dollar pool", to abandon discriminatory
import restrictions, to participate in next sum-
mer's negotiations for reduction of world-trade
barriers, and to support the Propox(d-^ for the
Expansion of World Trade and Employment,
which our Government published last December.
270
DEPARTMENT OF STATE BULLETIN
In my jud^nient aiaoiij; the most sifjnificant
of the benefits which flow to us from this phase
of tliese agreements is tlie Britisli commitment
to support the United States trade proposals.
By this commitment the Britisli take tlieir place
at our side as our economic allies and not our
economic enemies.
Before the outbreak of the war, the world was
beoinning to fall into narrow and tight com-
mercial compartments. In many ways, the war
gave impetus to this development. Unless the
most poAverful and united effort is made now to
achieve a sharp about-face, we cannot hope to
realize the traditional, liberal American di'eam
of a freer world of trade.
The partnership of Great Britain in this un-
dertaking is consequently of the first importance.
But it matters not how much the British may
wish it otherwise; they can join this partner-
ship only if the financial agreements arc
approved.
If the loan is approved, we can look ahead
with considerable confidence to a general reduc-
tion of tariffs and the elimination of preferences;
to a niiiiimuni of quotas and embargoes; to an
intelligent and restrained resort to government
subsidies; to general acceptance of the rule that
international business should be conducted on a
business basis and not as a phase of political
action.
We can look ahead also to a loosening of the
grip of cartels and combines upon world com-
merce; to multilateral arrangements for the
handling of suri:)his commodities; and to pro-
gressive limitation upon export restrictions and
price-fixing arrangements.
The United States believes that these ob-
jectives will be best served bj' the establishment
of an international trade organization under the
Economic and Social Council of the United Na-
tions. We believe that the international trade
organization can become one of the most im-
](ortant foundations of a lasting peace.
The organization gives promise of becoming a
strong foundation if it is to include Great Britain.
Without Gieat Britain it might succeed, but its
prospects would not be bright. Clearly we have
a great stake in this program.
The British credit is a large investment under-
taken fo gain an even larger objective. Without
it, our efforts to consti-uct an expanding world
economy may well be frustrated. WiMi it, we
shall have won the support of a jiowerful ally
in our efforts to break down those harmful eco-
nomic practices which throttle trade, perpetuate
poverty, engender ill-will among nations, and
sow the seeds of conflict.
Af the conclu.sion of the portion of his address
irh/'rh iras broadcast, Secret a ri/ Bi/fiiex added the
foltoii'ine/ remarks:
The radio audience has left us now, but I wish
to speak to you for a few more minutes about a
very significant aspect of the financial agreement
between Great Britain and the United States.
As you are no doubt aware, before the war the
pound sterling and the dollar were the curren-
cies in which over one half of the world's trade
was carried on. It is likely that even a higher
share of it will be conducted in pounds and dol-
lars in this post-war period.
It requires no abstract analysis to understand
that the free interchange of these two curren-
cies at a stable rate is basic to world 2)rosperity.
If interchange is not free and easy, the trade
world tends to freeze into two separate areas,
each contained within an economic "Chinese
AVall". The commercial horizons for each busi-
ness man are narrowed, because a large fraction
of his potential buyers or suppliers are placed
beyond his reach.
But if interchange is free and easy, business-
men can operate with the assurance that the pay-
ments they receive for the goods they sell abroad
can be spent anywhere in the world. They are
free to seek their natural sources of supplies and
their natural markets. When this is true, the
volume of trade grows; smoke rises from the
factories: jobs are plentiful and pay envelopes
full; and farmers can expect a fair return on
their crops.
Against the backgiound of these facts, the
importance of the financial agreement is clear to
see. The British today have very few dollars with
which to pay for the imports they require. They
are forced to conserve these dollars. As I read in
the newspapers a few days ago, one way in which
they have conserved dollars is by cutting from
their menu tiie dried eggs they had been obtain-
ing from the United States. The same newspaper
account added that the British Admiralty has
ordered British ships to avoid the Panama Canal
as much as possible because of the dollars toll.
Unless the British receive this loan of dollars
FEBRVARV 24, 1946
271
from the ITnited States, only one course will be
open to them. They must buy what they need
almost exclusively from the countries which nor-
mally buy equal or larger amounts from them. Oi-
they nuist buy from countries which are willing to
accept payment in pounds and spend the pounds
foi' goods in Great Riitain or in some other part
of the sterling area.
Since this is not the way trade arranges itself
naturally. Great Britain would have to do this by
government decree. The war controls would have
to be continued, not relaxed, and they would have
to be extended. These controls would necessarily
discriminate against the United States, because in
normal times our sales to British customers are
always larger than our })urchases from British
sellers.
I have discovered in my own thinking about
these matters that concrete examples are most
helpful. As an illustration of how the United
States suffers from the so-called "sterling bloc ar-
rangement'', let us suppose that a businessman in
India makes a sale of cotton to an importer in
England.
The man from India receives pounds sterling for
this ctjtton, not dollars. But he doe.s not even re-
ceive pounds sterling in a manner which permits
him to convert them into dollars, without an official
license. Con.sequently, the businessman in India
cannot, even if he wishes, use the proceeds of the
cotton sale to buy electric motors in the United
States. If he needs electric motors, he must pur-
chase them in England or in some other sterling
country.
The final result is that the American electric-
motor manufacturer loses the opportunity to sell
his wares. Sooner or later, if this situation were
prolonged, the United States might find it neces-
sary to retaliate in kind against this discrimina-
tion. This is not a prospect which anyone in
either Great Britain or the ITnited States, or in any
other country, can relish.
Fortunately, if the financial agreements are
approved, this unhappy prospect is removed. For
in the agreements the British Government makes
a firm commitment to terminate and modify these
restrictive trade piactices.
They agree that from the effective date of the
agreement United States businessmen who sell to
customers in Britain can get their payment in
dollars, which they can use whergver they choose.
{Coiitiniiiil on iKKjc 281)
By ASSISTANT SECRETARY CLAYTON
THE QUESTION is askcd by many people as to why
Britain needs this money and what .she will do
with it.
That is a proper question and deserves a propel-
answer.
Perhaps we might start by naming some of the
things for which Britain will not use this money.
She will not use it for nationalizing IJritish indus-
tries, and she will use very little of it for physical
reconstruction, i-econ version, and modernization of
her industries. It should l)e obvious to anyone
that Britain requires no dollars for socializing
British industries. She bought the Bank of Eng-
land with sterling bonds. Sterling will buy any-
thing in Britain. It is (tnly for purchases abroad
that some other kind of money is necessary.
In order to be able to luulerstand the British
economic and financial position, two important
points must be kept constantly in mind. The first
is that Britain lives by imports, which is just an-
other way of saying that she lives by exports,
because, obviously, her imports have to be paid for
by exports.
The second point to keep in niiiul is that Britain
mobilized for this wai'both in material and human
resources to a considerably greater degi'ee than we
did in the United States. That she should
mobilize to the limit was obviously in our interest.
In doing so, she sacrificed substantially her ex-
port trade. That also was in our interest because
it meant the maxinuun use of her resources and her
productive capacity for fighting the war. At the
end of the war, Britain was exporting only 30
percent of her pre-war volume.
During the war, the United States and Canada
supplied British import i-equirements through
lend-lease, but this arrangement ended with the
close of the war.
The 3% billions of dollars of new money which
the proposed agreement would make available to
the British is, therefore, for the purpo.se of en-
abling her to pay for a part of her necessary im-
ports of food and raw materials until her industries
can be reconverted to peacetime j^roduction and
her export trade restored.
The British estimate that, not until 1!»49, will
their exports of goods and services be sufficient to
Excerpt.s (if an address delivered before the National
Farm Institnte at Des Jloiiies, lowii, on Feb. 15.
272
DEPARTMENT OF STATE BULLETIN
cover their essential imports, even tlionjih such im-
ports are on a considerably rednced volume as com-
pared with pre-war fi<:ures. Meantime, she faces
inevitable deficit in her accounts with the United
States and the rest of the world of something like
5 billions of dollars. This proposed U.S. credit,
plus other credits that Britain expects to obtain
from Canada and elsewhere, will be used to meet
that deficit.
Tlie next rjuestion which arises in most people's
minds is "AVhy should the United States lend this
money to Britain and what advantage or benefit
will we receive from so doing?"
I believe we can get a better understanding <(f
the benefits which the United States will derive
from this credit by considei'ing for a moment what
Britain's course will be if the Congress should re-
fuse to ratify this agreement. In that event. Brit-
ain would be compelled to find some other means
of paying for her essential imports during her
period of reconversion. Britain does have an
alternative course — a course which was strongly
urged by a very powerful and vocal minority group
in Britain which vigorously opposed the approval
of this agreement in the British Parliament.
Britain would be compelled further to tighten
and cement the econcmiic ties which bind the Bi'it-
ish P]mpire ; she would strengthen the sterling-area
dollar-pool arrangements; she would extend and
expand the Empire Preference System which grew
out of our high-tarirt' jjolicy following the first
"World War; she would be compelled to continue
in force those import and exchange controls which
discriminate against U.S. goods; she would, of
necessity, confine the bulk of her purchases to
those countries agreeing to take payment in Brit-
ish goods.
If Congress should fail to approve this credit,
Britain could, in the alternative course indicated,
provide for her necessary imports during the re-
conversion period. At the end of that three- or
four-year period you may be sure that this whole,
vast complicated system of government-controlled
trade would have fastened itself so firndy on the
British economy that it would be practically im-
possible to change it. Moreover, the many coun-
tries whose trade is linked closely with that of
Britain would almost certainly follow Britain in
tliis direction.
Under such a system, one can no longer buy in
tlie cheapest market and sell in the dearest; he
buys and .sells whei-e governments direct, regai'd-
less of prices or other connnercial considerations.
Under such a system, the total of international
trade is materially reduced, production and con-
sumption are curtailed and the standard of living
declines.
Under s\ich a sy.stem. economic power in time
becomes linked to political power, and economic
blocs become political blocs, to disturb the peace
of the world.
Without the loan, it is perfectly clear what path
Britain woidd take, and how our farmers would be
afiected. The British would have to conserve their
dollar resources very carefully, and spend them
oidy for essential products which cannot be pro-
duced in Britain or bought elsewhere in the world.
Thej' would have to subsidize even further the ex-
j)ansion of inefficient British agriculture. They
would have to obtain more and more of their agri-
cultural im])orts from the countries of the sterling
area, with whom they have special trading rela-
tionships. They would have to resort to primi-
tive barter ariangements, obtaining agricultural
products from countries which would be willing
to accept an ef[ual value of British goods in re-
turn. All of these things would tend to freeze
the American farmer out of the British market,
to jiile up farm surpln.ses in the United States, and
to depress the prices of our farm products.
It is said that Britain defaulted on her World
War I debt and that this credit will suffer a similar
fate. I do not agree.
The first World War debt was incurred for
things which Britain had to have in order to fight
the war — her war and our war. This time we
knew better. Tanks and airplanes and food nec-
essary for fighting this war were furnished Britain
on lend-lease. Last time we insisted on payment
for these things plus a high rate of interest ; this
time we do not propose to charge for food which
was consumed, or amnuniition which was shot
away at the enemy, or airplanes which were used
to bomb his war plants — all in a common effort to
preserve the liberties of the English-speaking peo-
ples and of our allies.
To keep the record straight, we shoidd remember
that Britain did pay over 2 billion dollars of the
first Wt>rld War debt. IVo billions of which was
FEBRUARY 24, 1946
273
fur interest alone. For eaeh 4 ilolhirs she jiaid.
only 1 dollar went for reduction of princij)al. She
even made token payments after the moratorium
of 1931. This is hardly a record of intentional
default. Another important aspect of this matter
is the fact that followino- tlie first World War we
raised our tariffs tiiree different times and made it
impossible for Britain to sell us sufficient jioods
to eai'u the dollars with which to pay her debt to
us. This time we don't propose to raise tariffs.
It is also urged by .some that the British credit
will add to tlie dangers of inflation.
Inflation is undoubtedly a serious threat to our
domestic economy. It is very unlikely, however,
that the granting of this credit would aggravate
the danger of inflation, for the following reasons:
The British line of credit will be available over
a period of five years and will undoubtedly be
spent gradually.
Only a portion of it will be spent directly by
Britain in the United States. That portion will
be used largely for the purchase of food and raw
materials, some of which we already have in sur-
])lus as, for example, cotton and tobacco. Wheat
and corn may also be in surplus after the next crop
or so. Our capacity to produce all of these things
and many others besides is far greater than domes-
tic requirements. If we can again open up the
markets of the world to our products, the problem
of sui'pluses will lo.se its threat.
The remaining part of the credit will be spent
by Britain in South America and other parts of the
world for the purcha.se of raw materials which she
cannot obtain to advantage in the United States.
Such other countries will, in turn, spend these dol-
lars in the United States for the most part for
capital goods, equipment, machinery, engineering
services, et cetera, for the development of their
resources and their economy. The United States
has a great surplus capacity, created during the
war. for the jiroduction of .such things, and we
should welcome orders to keep these plants run-
ning. A prosperous manufacturing industry
moreover will afford a better domestic market for
tl\e products of American agriculture.
It is also urged that the credit to Britain will
serve as a pattei-n for other large loans and for
tliat reason should not be made.
Upon examination it will be seen that this is
not an impressive objection.
The British agreement is unifjue. The commit-
683935—46 2
nicnts undertaken by Britain are of a character
which no other country can match.
The British Empire accounts for one thii'd of
the international trade of the world. Due to the
elimination of Germany and Japan in the world
market, it is more than likely that thi-ee fourths
of the international trade of the world will, in the
next few years, be transacted in dollars and pounds
sterling. Under these circumstances, Britain's
partnership with us in putting world trade on the
right track and keeping it there is of the highest
importance. There is no other country whose
supi)ort is so essential for the success of our world-
trade program.
Due to the unique character of the British agree-
ment, the commitments which it contains, and the
size of the credit which it involves, it is necessary
to refer the matter to Congress for approval. The
credit is not for reconstruction or reconversion
lint is for working capital until Britain can suf-
ficiently recover her export trade to pay her own
way.
The International Bank, to be organized under
the Bretton Woods agreements, should be ready
for business within a year. This Bank is being
organized for the purpose of making loans for re-
construction and develoiiment. This is the in-
stitution that will care for long-run credit needs
of this character. Meantime, the Export-Import
Bank has made some loans of this character and
doubtless will give consideration to other applica-
tions to take care of essential needs pending the
time when the International Bank will be ready.
Now that World War II is over, there are only
two economic courses open to the countries of the
world. They can continue on a nationalistic bi-
lateral barter system, patterned along the lines
developed so intensively by Nazi Germany, or
they can go back to the nuiltilateral basis where
every country is free to trade with every other
country with a minimum of restrictions and dis-
criminations. The former system gives rise to
the formation of economic blocs. Under it we
would certainly start out in the post-war world
with three powerful economic blocs — a sterling
bloc, a dollar bloc, and a Russian or ruble bloc.
There would be pulling and hauling between these
blocs in their struggles for more power and more
trade territory.
An economic bloc means the regimentation of
international connnerce. Lincoln said. "This Na-
iCoiitiniieil on iiiif/c 277)
274
DEPARTMENT OF STATE BILLET IN
General Assembly of the United Nations
REPORT FROM LONDON TO THE OFFICE OF PUBLIC AFFAIRS DEPARTMENT OF STATE
London, Feb. 7J. — The United Xations inaug-
ura] General Assembly in London fulfilled, in
five ciowded weeks of day-and-night meetings, its
assigned task of fashioning the organizational
machinery designed to guide the \Yorld on a
l)eaceful course.
The main wheels are in position, and only a few
gears, such as the Trusteeship Council, remain to
be set in place to complete the construction job.
The Charter, painstakingly drafted at San Fran-
cisco, provoked little criticism and served as the
master blueprint for the delegates of 51 nations.
Tiiis was all that had been originally planned
for the Assembly. But, in addition, it found the
time and means to deal with substantive matters,
some of which submitted the newly forged ma-
chinery to severe tests. Chief of these were politi-
cal problems — hangovers from the war — which
were brought before and acted U})on by the
Security Council.
That the Council was able to agree on satis-
factory formulas to solve all but one of these
political issues augurs well for the success of the
new family of nations.
Pulilic airings of these "situations" and dis-
putes, with the world press in attendance, marked
a radical departure from the usual methods of
handling international affairs. The old locked-
door. sec ret -session style of diplomacy was aban-
doned and the cases were heard in the full glare
of the international spotlight. Strong language
was Used, but still tlie principals remained on
friendly terms and reached considerable agree-
ment.
A decade ago such "plain talk" would have
precipitated diplomatic '"incidents".
Closing Addresses
The Assembly ended early Friday morning
nnich as it began, with addresses by Clement
Attlee, Britain's Prime Minister, and Paul-Henri
Spaak, General Assembly President. Trygve Lie,
the Secretary-General who will lead the new
Organization for the next five years, also spoke.
Their speeches reflected satisfaction, hope, and
sober optimism. The Secretary-General spoke the
closing words. He said :
''AVe must feel humble in the knowledge that
untold millions throughout tlie world are looking
with new hope in this Organization which we
have brought into being. We have established a
truly democratic forum for the free and open
discussion of the great international and economic
problems of our time. I feel our growing pains
have not been excessive."
Prime Minister Attlee described the Assembly
jn'ogress as "great" and said :
"The success of tliese meetings has been re-
markable. Only those who jmt their expectations
far too high will have experienced any disap-
pointment. The LTnited Nations has now been
placed on a firm basis."
President Spaak recounted accomplishments of
the Assembly, suggested future procedural
changes, and extolled the work of the temporary
secretariat. He closed with these words: "We can
send a message to the world of confidence and
optimism."
In the final act of the first half of the inaugiu'al
Assembly, Dr. (lavrilovitch of Yugoslavia, chair-
man of the Site Inspection Committee, presented a
scroll to President Spaak which, in the name of
one million .school boys and girls of New York,
\vi.shed the LTnited Nations well.
A statement, sponsored by the French Del(>ga-
tion, calling on the women of the world to partici-
pate in the work of the United Nations was sup-
ported in the Assembly. Women were urged to
FEBRUARY 24, 1946
275
('(lucato cliildren in tlic ways of peace iuul the aims
and pnrpdsi's ni' (he United Nations.
The Indonesian Question
Again, in (he Hfth week of the London meetings,
tlie (h'ania of })ublic airing of political grievances
captured (lie headlines, while the less sensational
hut equally important organizational business was
recorded in smaller jirint. This time, too, the Se-
curity Council held the center stage during the con-
sideration of the Ukrainian complaint about the
presence of British troops in Indonesia.
As it ha<l on two ])revit)us occasions, the Council
was able to reach a decision, finding that there was
no need to name a c((nnnission of inquiry to inves-
tigate the situation in Intlonesia. The Ukrainian
Delegate, strongly sui)ported by the Soviet Union,
had pro]K>sed sucli a course. Only the U.S.S.R.
and Poland voted for the connnission. (Ukraine,
not being a member of the Security Council, was
not entitled to a vote.)
The Council likewise rejected a compromise
Egyptian proposal and an amendment t<i it as pro-
posed by Andrei Vishinsky, chief of the Soviet
Delegation. The P]gyptian resolution provided
tliat British trooi)s should in no way be used
against the Indonesian national movement; that
the Council reserve its right to reopen the matter;
and that British troops should be withdrawn from
Indonesia as soon as their "strictly limited" tasks
had been completed. Poland and Egypt voted for
the Egyptian resolution.
The Soviet amendment to the Egyptian proposal
called for a mission com]irising representatives of
the U.S.S.E., Great Britain, China, the U.S.A.,
and the Netherlands to be sent to Indonesia with "a
view to clarifying the situation and contributing
to the re-establishment of a normal situation"'. It
was defeated on a separate vote, Me.xico, Poland,
and the IT.S.S.R. l)eing the only supporters. The
chairman then declaimed the Indonesian matter
closed.
During the prolonged discussion of the Indo-
nesian question, neither the Soviet nor the
Ukrainian Delegates pressed for a Security- Coun-
cil hntling that the presence of British troops in
Indonesia was a danger to international peace.
They did, however, argue at length foi' the api)oint-
ment of a commission of inquiry.
Great Britain, through its outspoken Foreign
Minister, Ernest Bevin, and the Netherlands
strongly opposed that course. They were joined
by the chief United States Delegate, Edward R.
Stettinius, Jr., who said;
"Because the right of investigation is so import-
ant, the U. S. Government feels that investigations
should not be lightly undertaken. In determin-
ing whether or not a situation warrants investi-
gation, the Security Council must have reason to
believe from all the circumstances before it that
continuance of the situation is likely to endanger
international peace. I would add that in order-
ing an investigation the Council should have a con-
structive purpose and should look forward and
not backward. It should seek to promote a just
settlement of a situation or dispute and to avoid
the introduction of new complications. In the
absence of such factors, a decision to investigate
could only bring into discredit this vital function
of the Council."
After discussing the Indonesian question, the
Council deferred action on the Yugoslav-
sponsored motion to admit Albania to membership
in the United Nations until the second half of the
Assembly session in New York City in Septem-
ber. The U.S.S.R. and Polaiid wanted the appli-
cation considered immediately, but the postpone-
ment motion introduced by ]Mr. Stettinius was
carried by seven affirmative votes, namely: the
Netherlands, Egypt, Brazil, China, Australia, the
United Kingdom, and the United States. Post-
ponement was advocated on the ground that the
(\)unt'il needed time to view similai' re(iuests from
other nations.
On Friday the Council was discussing the final
matter on its agenda^the joint request of Lebanon
and Syria that British and French troops be evacu-
ated innnediately from Syria and Lebanon.
Site Approved
In one of its final acts, the General Assembly
approved the report of the Special Site Commit-
tee, establishing interim headquarters in New
York City and the permanent home within the
area of Westchester and Fairfield Counties, near
New York City. Mi-. StettiTiius e.xjn-essed the
appreciation of the LTnited States "for the great
honor which had been conferred upon it".
A headquarters commission will consider the
exact amount of land needed within the area —
estimates range from 2 to 40 square miles — cost
of same, and the arrangements which can be made
with Federal, State, and county authorities. The
276
DEPARTMENT OF STATE BULLETIN
commission will report at the next meeting of the
Assembly. The Secretary-General was authorized
to negotiate with th(> United States on the immu-
nities and diplomatic privileges of delegates and
members of the Secretariat.
Previou.sly, in committee, the report of the Spe-
cial Hejidquarters Group had been thoroughly dis-
cussed. The advantages of the New York and
Siin Francisco areas were weighed, with the Aus-
tralian Delegate leading the campaign for the lat-
ter location for temporary headquarters. San
Francisco was defeated by two votes in a ballot
on which there were three abstentions. Through-
out these discussions the United States Delega-
tion took a neutral stand and did not vote on any
of tiie questions.
ECOSOC and Outside Organizations
The Assembly, at its final meeting, also reached
a decision on the knotty question of the relation-
shij) of outside organizations with the Economic
and Social Council. The Political and Security
Conmiittee's recommendation that the Economic
and Social Council should adopt arrangements
eiuibling the World Federation of Trade Unions,
the International Cooperative Alliance, the Amer-
ican Federation of Labor, and other organizations
"to collaborate for the purposes of consultation
with the Council", was carried over the opposition
of the Soviet Union, tlie Ukraine, and otiiers.
This matter jjrovoked considerable debate in
committee. Senator Tom Connally of the United
States Delegation, one of the leaders of the dis-
cussion, maintained throughout that any privileges
granted the W.F.T.U. should also be given to the
A. F. of L. The United States position was upheld
in the Assembly.
Displaced Persons
On the problem of refugees and displaced per-
sons of all categories, the Assembly decided to
refer the matter to the Economic and Social Coun-
cil for exanunation and report at the second half
of the Assembly session. In the resolution the
Assembly recognized the necessity of distinguish-
ing between genuine refugees and displaced per-
sons, and war criminals, Quislings, and traitors,
and recommended that the Economic and Social
Council take into consideration the follo>ving prin-
ciples :
(a.) This problem is international in scope and
nature ;
(b) No refugees or displaced persons who have
finally and definitely, in complete freedom, and
after receiving knowledge of the facts including
adequate information from the governments of
their countries of origin, expressed valid objections
to returning to their countries of origin and who
are not war criminals. Quislings or traitors, .shall
be compelled to return to their country of origin;
(c) The nuiin task concerning displaced persons
is to encourage and assist in every way possible
their early return to their countries of origin;
(d) No action taken as a result of this resolu-
tion shall be of such a character as to interfere
in any way with the surrender and punishment
of wai- criminals. Quislings and traitors, in con-
formity with present or future international ar-
rangements and agreements;
(e) Germans who are being transferred to Ger-
many from other states or who fled to other states
from Allied troops, do not fall under the action
of this <leclaration in so far as their situation may
l)e decitled Ijy Allied forces of occupation of (ier-
many, in agreement with the governments of the
respective countries.
The Soviet Delegation argued without success
for tighter refugee-control measures, proposing
among other things that j^ropaganda be banned in
displaced-persons centers. The United States
Delegation opposed all such restrictive measures,
favoring the rights of free speech and asylum for
political refugees. It was agreed, however, that
war criminals. Quislings, and traitors should be
placed in a special category.
World Food Shortage
The Assembly also took cognizance of a letter
from Herbert Lehman, Director General of
UNRRA, which urged cooperation of the United
Nations in a program to conserve wheat, cereals,
fats, and other foods, of which there is a critical
world shortage.
A food resolution, sponsored by the U.S.S.R..
France, China, the United Kingdom, and the
United States, urging all governments and peo-
ples to take immediate and drastic action to con-
.serve supplies by securing adequate collection of
crops, by saving food and avoiding wa.ste, and by
insuring maximum production of grain in the com-
ing season was unanimously adopted as one of the
last official acts of the Assembly.
On the eve of adjournment, Ernest Bevin, Brit-
ain's P\)reign Secretary, solenudy warned dele-
FEBRUARY 24, 1946
277
gates of the .-)1 nations tliat tine billion people are
threaten-'d with famine as a result of the world
food shortajje. Mr. Bevin declared the situation is
"really alarming". He added :
"Civilization is at stake. Diet may be monot-
onous. l)ut it is better for ])eople to survive on a
monotonous diet than not to survive at all. In the
matter of food, the war is still on. We must all
pool our resources and make the people of our
countries conscious of our difficulties. In our coun-
try we have already started a campaign to stop
waste."
Delegate after delegate rallied to Mr. Bevin's
apjieal and stepped to the speaking rostrum to
pledge Ids coimtry's support. For the United
States. Mr. Stettinius recalled the great efforts of
his country, during and after the war, to ship food
to nations in need of it, and said:
"Those efforts were not enough. We must do
more. We shall do more."
Great Britain, whose people recently took
another cut in their limited rations, has taken the
initiative in the food cam[)aigii. The Government
is inviting the food ministers of all the European
countries, the United States, and Canada to attend
a food conference in London in April. This fol-
lowed the action of the Director General of the
Food and Agriculture Organization, who, in a
letter to the Secretary-General of the United Na-
tions, wrote that his organization was willing to
accept the responsibility of mobilizing the world's
resources, and proposed as a first step the calling
of an international food conference.
The Assembly voted to have the terms of office
of officials elected at the London session run to
January 1, 1947. Their successors will be elected
and their terms of office will be considered at the
Se])teniber sitting of the Assembly.
While most of the delegates were prepared to
leave London soon after the adjournment of the
General Assembly, members of the Economic and
Social Council will remain on for several days to
deal with procedural matters on the agenda. It
was expected that the Council would adjourn
about February 20.
Although the Assembly is not scheduled to meet
again until Septendjer. United Nations councils
are continuing bodies and will meet whenever they
have business to transact. The Security Council
is in constant session; the Economic and Social
Council will reconvene at the interim headquarters
in the middle of May; and the nuclear groups of
the committees and commissions of the Economic
and Social Council are expected to meet in nud-
April.
CLA\TOr^^('0Htiiiii<(l from ixiffc 273.
tion cannot exist half slave and half free". This
applies to commerce as well as to human beings.
If we have regimentation in our foreign trade, how
long do you think free enterprise can continue in
our domestic commerce?
No doubt you will agree that peace is hardly
possible in the world without the collaboration and
cooperation of the United States, the Soviet Union,
and Great Britain. I leave you to judge as to
whether these countries would be likely to con-
tinue to work together harmoniously for the pres-
ervation of peace in the world if they were at the
same time carrying on the bitterest kind of eco-
nomic warfare.
The main ])rize of the victory of the ITnited Na-
tions in this war is a limited and temporary power
to establish the kind of world we want to live in.
I want to emphasize that this power is both limited
and temporary.
The fundamental choice is whether countries
will struggle against each other for wealth and
power or work together for security and mutual
advantage. The choice was made in principle at
San Francisco and has since been ratified by the
overwhelming majority of the governments con-
cerned. The question now is whether we in the
United States will seize this present opjiortunity
to give leadership to the high enterprise of starting
the post-war world off on the right track economi-
cally, or whether we will stand aside and let the
world drift with the tide into dangerous waters
of nationalism and restrictionism of all kinds.
Britain can join with us in this high enterprise
only if she obtains the necessary assistance to
enable her to make a revolutionary shift for herself
from the closed to the open sj'stem of world trade.
With the help of Britain, the leader of the greatest
international trading area in the world, there is
strong reason to believe that we can be successful
in charting the right course — without her help we
can hardly hope to succeed. We must choo.se now !
278
DEPARTMENT OF STATE BVLLETIN
Deutsche Auslandspropaganda
Article by SAXTON BRADFORD
THE GERMAN PKOPAGANDA MINISTRY Under Cidt'b-
bels ami the Foreign Office's propiiganda ac-
tivities inidei- V(^n Kiljlientrop were of themselves
masterpieces of (jerman organizational intricacy.
The entire structure was built first on the founda-
tion of information on what was going on in otlier
countries, furnished by a wide press and radio-
listening service. Once the policy had been estab-
lished on the basis of this information, the Statul-
ardthesen itncl EichfJinien fiir die Deutsche
Aiis?andf<pfopa(/ai)da was })repared for the very
purpose of instructing Nazi field workeis in the
methods and materials to be planted abroad.
Physical Structure of the Propaganda Mechanism
The Propaganda Ministry's foreign operation
was divided into geographic sections, one each for
countries, such as the United States, whicli were
deemed imi)ortant targets and one each for areas
which comprised less important countries. The
Ministry was at the same time divided into func-
tional sections operated by fanatic Nazis who, in
these spheres, exercised absolute censorship over
the words and ideas in public currency within Ger-
many as well as those designed to carry the German
message abroad : a books-
and-literature .section, a
motion-picture sect ion, an
inf ormat ion -an d - press
section, a radio section, a
cultural section, a music
section, a theater section,
a tourist-travel section,
and a sports section.
The personnel in these
sections had a record of
Mr. Bi-ailfoi-d is an officer
in the Foreign Service Aux-
iliary on assignment to tlie
Depai'tmeTil of State.
f1 ilh this article the Department of State Bulletin
is initidting publicution of documentation secured
jrom official German Goiernment files as a result
of the surrender of Germany. Mr. Bradford's article,
which explains the structure and operation of the
German propaganda machine, uill be folloiced by
excerpts from Staiularilthesen und Kiihtlinien, o
definitive book of propaganda directives used in
the German Foreign Ministry. After two instal-
ments of such excerpts, the Bulletin icill publish
documents of Hitler and Goering regarding Under
Secretary of State Sumner Welles' mission in Ger-
many ill 1940. Publication of other materials will
follow.
irresponsibility, a high suicide rate, and a reputa-
tion for following Goebbels' directives with the
tenacity of bulldogs. Again there is more than
academic interest in the fact that a heavy percent-
age of the personnel of the Propaganda Ministry
seem to liave been run-of-the-mill German bureau-
crats until their imaginations were caught by the
fire of Nazi oratory; they tiien became militant
Nazis and remaineil militant Nazis until adminis-
trative incompetence at the top and tlie specter of
defeat on the field of battle disilhisioned them.
As the war progressed, Foreign Minister von
Ribbentrop became increasingly interested in
propaganda, claiming that it .should be the func-
tion of the Foreign Office to direct German propa-
ganda abroad. Goebbels considered this an en-
croachment upon the prerogatives of his Propa-
ganda Ministry, ami the two men thus were in open
conflict over delimitation of si:)heres of influence.
Goebbels had some years prior to the outbreak of
war succeeded in having his own appointees as-
signed to key missions abroad, usually as attaches
or Be'ri'dete. With the outbreak of war Ribben-
trop attemj^ted to curtail the functions and influ-
ence of these officers by expanding the regular
diplomatic staffs abroad to include propaganda
and cultural "experts'" from the Cultural and Press
Divisions of the Foreign
Office. Finally, in 1943,
in a reorganization of the
Foreign Office, a power-
ful KidfiD'pollthche Ah-
frdinif/wnf^ built up, com-
bining the old Cultural
and Information Divi-
sions and headed by the
notorious Professor
F r a n z A 1 f r e d S i x.
Whereas originally only
the propaganda on a high
cultural level was con-
trolled by the Cultural
FKBRIAKY 24, 1946
279
Scctiiin of the Foreign Office, under Six's direction
tlie Kii/fu/'poi/t/sc/ic AhteiliDHj became an iin-
l)ortant factor in Germany's wartime propaganda
effort abroad.
Associated in this effort was a ganglion of busi-
ness, political, cultural, and educational enter-
jirises created by the Nazi Party or taken over
from the Weimar Republic and revitalized by the
Party at the time of its accession. Among the ele-
ments l)tisy spreading pan-Germanism abroad were
organizations of the National Socialist Party it-
self, such as the Arieitfifront (Labor Front) ; the
Aux7andf!0)'g(inisafio)i ; the Devfsches Aitslaud-
Iiifif/fiif of Stuttgart; the Ihero-Aiiierikanisches
In-stitiit of Berlin; the Lehrerbund ( Prof e.ssors'
League) ; the Druff<che Ahademie in Munich and
its establishments abroad. Also helpful to the
cause were such jnore or less independent agencies
as the (xerman chamliers of connnerce; German
ti'avel bureaus; the Deutsche^ Nnchrichfeti Biiro
(German News Agency) : the Transocean News
Service with its world-wide affiliates; and an im-
pressive array of connnercial firms witli branches
abroad. In many instances such agencies were
controlled, or submitted to at least pai'tial direc-
tif)n, by the German diplomatic and consular mis-
sions abroad.
II
The Theses for German Projjaganda Abroad
The Stand ardthe-^en und Richtliriien fiir die
Detifsche Auslandspropaganda was the official
joropaganda guide prepared in the Foreign Office.
It is nnide up of the basic propaganda postulates of
the Reich for official use against each country to
which the Reich had access. A translation of this
JOTok reveals that the primary object of German
propaganda was to create confusion in the minds
of people in every part of the earth. German
strategists had long ago come to the conclusion
tliat the strength of the Reich lay in the concen-
trated purpose of her people, and that the weakness
of the big, amorphous world without lay in the
confusion and lack of will inherent in her many
unassimilated points of view.
The thesis laid down in 1943 for propaganda to
be used in the United States consisted of 10 points :
1. Roosevelt is the principal war criminal
2. personal ambition led Roosevelt to take refuge
in war
3. Roosevelt deceived the American people by
pretending the war was being fought for democ-
racy
4. Roosevelt is aiming at dictatorship and is
using democracy as a slogan
5. Roosevelt is an imperialist who overpowered
Latin America and other weaker regions and
countries
6. Roosevelt's war is for the purpose of resur-
recting Jewish power in the world
7. Roosevelt's utterances about Christianitj^ and
Innnanity are hypocritical; he is aligned with Bol-
shevist atheism
8. the American Army is already beaten
9. American rearmament figures are sheer bluff
10. the United States will lose the war because
its strength is spread on two fronts.
Subsequent pages of the same official handbook
lay down the propaganda line to be used exclu-
sively outside the United States, which includes
the following points :
1. the Yankee Empire aims to replace the Brit-
ish Empire
2. Roosevelt is sick and insane
3. the United States is an undigested mass of
peoples without purpose
4. the domestic social structure of the United
States is about to collap.se
5. Americans are bluffers
6. North America has no creative cultural
power; it is soidless; is allied with Bolshevism.
Spain was told the triumph of the Allies would
mean the end of the Catholic Church and the end
of Spain as a power. England was told the Ger-
mans wanted no war but Churchill declared war
on Germany in the interests of his Jewish and
American friends. Portugal was told America
would swallow her. Iran was told England was
stealing her oil. The other Americas were told
the United States would enslave them. Turkey
was told the Soviet Union wanted to engulf her,
Init that Germany offered participation in the
Gesamfschick.sal (common destiny) of Europe.
India was told to break the British chains and
become free. The Soviet Union was told Britain
and the United States intended to liquidate the
Soviet Union once she was weakened by war.
Asiatics were told Japan was saving them from
Bolshevism. To other countries — more of the
same.
280
DEl'ARTMEM OF STATE BULLETIN
The self-confessed aims of German propaganda
abroad were:
1. impairment of Anglo-American and Soviet
powei's of resistance, paralysis of the Kriegswillen
(military spirit) of these conntries, and enconr-
agement of the longing for peace in Germany's
enemies
2. splitting the alliance among Britain, the
United States, and the Soviet Union
3. convincing the world of the sure victory of
the Axis
4. maintenance and intensification of the fear
of the Bolshevik danger on the part of Europe
and the rest of the woi-ld; the triumph of Ger-
many's enemies would mean the Bolshevization
of Europe and the world.
Wei"ner Best is reported to have exposed the
basic philosophy behind German propaganda in
an article written for the June 1942 issue of the
German Zeitschrift flir Politik. Best, a leading
Nazi dialectician, became Minister to Denmark.
He said that the master people within the Gross-
ramn is the people which welds the Grossraum
into one unity, which creates the G ro-^sraum. order
and exercises the Grossraum administration.
The unquenchable virility of the resistance
movement in France, Norway, Belgium, Greece,
and other countries is living proof of the failure
of this concept of pan-Germany and pan-Europe
as identical ideals.
Ill
German Propaganda in South and Central America
When Germany began serious innnediate prep-
arations for World War II, the German residents
of South and Central America were regimented
by the A%i~shin<]sorgariisation into typical party
structures: Bloekwarfe, Zellen, Orfsgmppen, and
Landesgnrppen, each presided over by a party
leader. The Landesgruppenleifer was a man of
considerable influence not only in the country in
whicli he operated but also in the home office of
Berlin. In many cases he was a regularly accred-
ited official of the diplomatic mission, operating
under a diplomatic cover title, sometimes as high
in rank as counselor of embassy. All well-estab-
lished German clubs, schools, churches, labor
' EI Pnmpero was established b.v Gottfried Sandstede,
Niizi Lnndi'xjvurmiliihrrr for Argentina and press and
cultural attaclK'' for the German Embassy. It was financed
by the Embassy. Its circulation reached 125,000 daily.
groups, charitable organizations, cultural out-
posts, chambers of commerce, commercial enter-
prises, and scientific centers on which pressure
could be applied were dragooned into line.
AVhether they liked it or not they became a dy-
namic part of the German concept of total global
war. Their role was largely economic and propa-
gandistic. They were guided by the theses of the
Auslandspropaganda handbook. Germans in
South American countries, inspired and guided i)y
a considerable army of agents sent out from Ber-
lin and by an equally considerable army of oppor-
tunist local leaders, infiltrated as far as possible
local political movements and institutions. Ger-
mans in one of the American republics were as-
sessed up to 50 percent of their 6i»laries for German
propaganda. This money was extorted by every
means at hand. Nazi agents examined the books
of firms suspected of holding out. Although this
maneuver was largely blocked, once war had
broken out, by the cooperative defensive action
of the American republics, it made some headway
in the direction of embarrassing the war effort of
the United Nations.
The basic postulates laid down in the Foreign
Office's Standardfhescn iirid RlchtJinien included
the following theses to be directed at the Americas :
1. Central America is now completely under the
knout of Roosevelt
2. the incapable and corruptible governments
of the Central American states have sold their
countries to North American capitalism
3. the United States of America is working for
the enslavement of South America
4. a war with Europe would be the ruin of South
America
5. in the long run. North America cannot absorb
the products of South America; the New Europe,
by contrast, is the natural and best customer of
South America.
One of the favorite cartoons in El Pampero of
Buenos Aires ^ depicted Uncle Sam looking re-
markably like President Theodore Roosevelt
drinking a highball while perched comfortably on
the back of a dark-skinned native.
El Pampero was one of many propaganda media
founded in South America or appropriated for
the purpose of poisoning the minds of nationalist
elements in the other American republics against
the Yankee. In addition, DNB, Transocean, and
affiliated "news" agencies serviced many of their
FEBRUARY 24, 1946
281
newspapers free of charge with highly doctored
inforniation about, the "Holy Mission" of Ger-
many and the imminent collapse of the "Decadent
Democracies." Parallel use of radio, word of
mouth, fiction, and magazines helped spread the
Nazi story.
IV
The Future of Nationalist Propaganda
These are the words said by President Truman
at the conclusion of the United Nations Confer-
ence at San Francisco :
"The world has learned again that nations, like
individuals, must know the truth if they would
be free — must read and hear the truth, learn and
teach the truth. ... It is easier to remove
tyrants and destroy concentration camps than it
is to kill the ideas which gave them birth and
strength. Victory on the battlefield was essential,
but it was not enough." ^
This statement is freighted with meaning for
all the i^eople of the earth, because it represents a
purpose backed by a military and political com-
bination grown hard in the test of war. It means
we propose that neither Germany nor any other
national organization of people however disci-
plined with the inner power of an ideology shall
imijose its own will on others by recourse to arms
or by the more subtle and more effective method
we call "propaganda".
The United Nations have embarked on an ex-
periment in cooperative living, an experiment that
becomes more urgent with the advent of the Atom
Age. Wliat would be the effect of the collision of
the pan-German idea with the brotherhood-of-
man idea? What place in the new world can we
afford to give the German propaganda of con-
quest? Where does the cycle of arrogance and
jjleading, of discipline and confusion, of attack
and withdrawal that constituted the German bag
of word-tricks fit into the high resolve of peoples
* Bulletin of July 1, 1945, p. 5.
" For articles on the subject of political aggressiou, see
"In Defense of the Americas Against Axis Political Ag-
gression : The Emergency Advisory Committee for Politi-
cal Defense", Bulletin of Jan. 7, 1945, p. 3, and "Elimina-
tion of Axis Influence in This Hemisphere : Measures
Adopted at the Mexico City Conference", by Thomas C.
Maun, Bulletin of May 20, 1045, p. 924; for articles by
Leon Fuller on education in Germany under the National
Socialist regime, see Bulletin of Oct. 22, 1944, p. 466,
Oct. 29, 1944, p. 511, and Nov. 5, 1944, p. 551.
' ExectUive Agreement Series 352.
to live peaceably together? Wliat part can a di-
rected, purposeful, highly integrated nationalist
propaganda play in a world that has dedicated
itself to the reexamination of its prejudices and to
the free interplay of opinion?
A corollary of the establishment of world or-
ganization will be the establishment of guaranties
of free intercliange of information. In the atmos-
phere of such an interchange, truth is the only
element capable of survival. But until that day
of intellectual emancipation the propaganda of
militant nationalism remains a deadly weapon in
irresponsible hands.-
UNRRA
Uruguay
The Uruguayan instrument of ratification of
tlie Agreement for United Nations Relief and
Rehabilitation Administration ' was deposited in
the archives of tlie Dejaartment of State on Janu-
arj' 8, 1946. The instrument was dated August
15, 1915.
U.S.-U.K. AGREEMENTS.— CoMti»«e(J from page 211.
Thej' agree that within a year of the effective
date of the agreement and in countries where the
principal international currency is the British
pound, they will make arrangements for the free
interchange of pounds sterling and dollars.
They agree that within a year, in transactions
with all countries, pounds sterling will be ex-
changeable for any currency which may be desired
b}^ a seller to a Biitish purchaser.
You will realize that I have not attempted a
complete discussion of the problen^s of empire
jjreferences, the so-called "sterling bloc", the 14
billion dollar British sterling debt, and other re-
lated matters, nor to describe in full the provisions
of the agreements which deal with these jDroblems.
But I have said enough, I think, to indicate how
mistaken it is for some to say that the United
States gains nothing from these agreements. The
specific British commitments to which I have just
referred, coupled with their commitment to sup-
port our trade and employment proposals, are
tangible, firm gains for the United States and for
the rest of the world.
What we gain is the chance for expanding world
trade, for freedom for goods and money to flow
where they may, for a prosperous world and not
a lean world.
282
DEPARTMENT OF STATE BULLETIN
Yalta Agreement on the Kuriles
TEXT OF THE AGREEMENT
The text of the agree7nent 'between, the President
of the United States, FranMin D. Roosevelt, the
Prime Minister of Great Britain, Winston Church-
ill, and Generalissimo Joseph Stalin, signed at
Yalta on February 11, 19^5 and released simul-
taneously in London, Moscoxo, and Washington on
February 11, 19J,6.
The leaders of the three Great Powers — the
Soviet Union, the United States of America and
Great Britain — have agreed that in two or three
months after Germany has surrendered and the
war in Europe has terminated the Soviet Union
shall enter into the war against Japan on the side
of the Allies on condition that:
1. The status quo in Outer-Mongolia (Tlie Mon-
golian People's Republic) shall be preserved:
2. The former rights of Russia violated by the
treacherous attack of Japan in 1904 shall be re-
stored, viz :
{a) the southern part of Sakhalin as well as all
the islands adjacent to it shall be returned to the
Soviet Union,
{b) the commercial port of Dairen shall be inter-
nationalized, the preeminent interests of the Soviet
Union in this port being safeguarded and the lease
of Port Arthur as a naval bitse of the USSR
restored,
(<?) the Chinese-Eastern Railroad and the
South-Manchurian Railroad which provides an
outlet to Dairen shall be jointly operated by the
establishment of a joint Soviet-Chinese Company
it being understood that the preeminent interests
of the Soviet Union shall be safeguarded and that
China shall I'etain full sovereignty in Manchuria ;
3. The Kuril islands shall be handed over to the
Soviet Union.
It is understood, that the agreement concerning
Outer-Mongolia and the ports and railroads re-
ferred to above will require concurrence of Gen-
eralissimo Chiang Kai-shek. The President will
Editor's Note : For text of Sino-Soviet Treaty of Friend-
sliip and Alliance, see Bulletin of Feb. 10, 1946, p. 201.
The background remarks were released to the press
Fob. 11.
take measures in order to obtain this concuri'ence
on advice from Marshal Stalin.
The Heads of the three Great Powers have
agreed that these claims of the Soviet Union shall
be unquestionably fulfilled after Japan has been
defeated.
For its part the Soviet Union expresses its readi-
ness to conclude with the National Government of
China a pact of friend.ship and alliance between
the USSR and China in order to render assistance
to China with its armed forces for the purpose of
liberating China from the Japanese yoke.
February 11, 19Jf5
J. St.alin
Franklin D. Roosevelt
Winston S. Churchill
BACKGROUND REMARKS ON THE
AGREEMENT
In making public this agreement the Secretary
of State called attention to the fact that the Gov-
ernment of the Chinese Republic was not a party
to the agreement and that the relations between
China and the Soviet Republics are in no way con-
trolled by this memorandum but are governed en-
tirely by the provisions of the treaty between China
and the Soviet Republics signed at Moscow on
August 14 and subsequent agreements between
tho.se two Governments.
The Secretary further stated that it is evident
that this agreement was regarded by President
Roosevelt, Prime Minister Churchill, and General-
issimo Stalin as a military agreement and was
marked "top secret". There was good reason for
the agreement being regarded as top secret. The
agreements were based upon Russia's entering the
war. The Soviet military leaders advised our
military leaders that Russia could not enter the
war until 90 days after the surrender of Germany,
that it would take them that time to move their
arms to the Jai)anese front. At that time, Feb-
ruary 11, 1945, our armies were attacking on the
western front. They needed all the assistance that
could come from a simultaneous attack from the
Soviet Armies on the eastern front. Had the Jap-
(Continued on next page)
FEBRUARY 24, 1946
283
Law on Vesting and Marshaling of German
External Assets
Whereas the Cuiitrol Council is detenniiied to
assume control of all German assets abroad and
to divest tlie said assets of their German owner-
shilD M'ith the intention thereby of promoting
international peace and collective security by the
elimination of German war potentials.
Now, therefore, the Control Council, in ac-
cordance with the decisions of the Potsdam Con-
ference and the political and economic principles
by which it is necessary to be guided in dealing
with this problem, enacts as follows:
Article 1.
A German External Property Commission
(hereinafter referred to as "the Commission")
composed of representatives of the four occupy-
ing powers in Germany is hereby constituted.
For the purpose of carrying out the provisions
of this law the Commission is constituted as an
intergovernmental agency of the Control Council
vested with all the necessary powers and
authority.
Article 2.
All rights, titles and interests in respect of any
proi^erty outside Germany which is owned or con-
trolled by any person of German nationality in-
side Gea'many are hereby vested in the
Commission.
Ai'tide 3.
All rights, titles and interests in respect of
MALTX— Continued from page 282.
anese learned of this agreement they would have
immediately attacked Russia. That would have
necessitated the removal of Russian troops fi'om
the German fi'ont toward Japan at a time when
Russia was starting the final drive which brought
about the collapse of the German Army on that
front. The removal of Russian troops at that
time would have made the task of the American
Armies that much more difficult and cost more lives.
The Secretary stated that he learned that an
agreement had been reached on this subject on
September 2, after the Japanese surrender on
August 12, and at his press conference on Sep-
tember 4 announced the existence of such an
agreement.
any property outside Germany wliich is owned or
controlled by any person of German nationality
outside of Germany or by any branch of any
business or corporation or other legal entity or-
ganized under the laws of Germany or having its
principal place of business in Germany are here-
by vested in the Commission.
For the purpose of this article the term "any
person of German nationality outsid'C Germany"
shall apply only to a person who has enjoyed full
rights of German citizenship under Reich law
at any time since 1 September 1939 and who has
at any time since 1 September 1939 been within
any tei'ritory then under the control of the Reich
Government, but shall not apply to any citizen of
any country annexed or claimed to have been
annexed by Germany since 31 December 1937.
Article 4-
The Conunission has power by unanimous
agreement from time to time to add to the cate-
gories of persons to be affected by Articles Two
and Three of this law unless such addition is
vetoed by the Control Council within thirty days
of agreement by the Commission.
Article 5.
The question of whether or not any compen-
sation shall be paid to any person whose right,
title or interest in any property has been vested
in accordance with this law will be decided at
such time and in such manner as the Control
Council may in the future determine.
Article 6.
The right, title and interest to all property,
title to which has been vested in the Commission,
under this law, or the proceeds of such property,
shall be held by the Commission and disposed of
I^ursuant to such further directives as the Control
Council may issue from time to time.
Article 7.
In addition to the general powers contained in
Article One of this law the Commission shall be
vested with the following specific powers which
The above is Law No. .5 of Oct. 30, 1945 issued by the
Allied Control Council for (Jermany.
284
DEPARTMENT OF STATE BULLETIN
it may exercise directly or through aiiy agency
■which it deems appropriate :
(a) To do all acts which it deems necessary
or appropriate to obtain possession or control
over all property, the right, title or interest in
which is vested in the Commission under this
law ;
(&) To operate, control and otherwise exer-
cise complete dominion over all such property,
including where this is essential to the preserva-
tion of the value represented by the property, the
sale, liquidation or other disposal thereof sub-
ject to the provisions of Article Six;
((?) To require the keeping of full records, and
to seize or require the production of any books of
account, records, contracts, letters, papers relating
to any property affected by this law and to compel
the attendance of witnesses and to require the
furnishing of full information regarding such
property;
(d) To require information, evidence and rec-
ords with regard to any pro])erty outside Germany,
in whole or in part, of all persons covered by
Articles Two and Three hereof.
Article 8.
The work within any zone of occupation of mar-
shalling and recording the e\idence with respect
to Germany's external assets shall be the re-
sponsibility of the Commander-in-Chief for that
zone.
The Conunission may request zone commanders
to conduct certain investigations either alone or
in conjunction with investigations being con-
ducted in other zones, and further, may itself con-
duct joint investigations in cases where the evi-
dence is contained in more than one zone sub-
ject to the authority of the Connnander-in-Chief
in any zone in which such joint investigation is
being conducted.
Article 9.
Articles Two and Three of this law shall not
apply to assets subject to the jurisdiction of the
United Kingdom, British Dominions, India, col-
onies and possessions, the Union of Soviet Socialist
Republics, the United States, France and any other
United Nations determined by the Control Council.
Article 10.
For the purpose of this law :
{a) The term "person" shall include any natu-
ral person or collective person or any juridical
person or entity under pul lie or private law hav-
ing legal capacity to acquire, use, control or dispose
of property or interests therein ; and any gov-
ermnent. including all political sub-divisions, pub-
lic corporations, agencies and any instrumentali-
ties thereof. Any juridical person or entity
which is organized under the laws of, or has its
principal place of business in Germany, shall be
deemed to be a person of German nationality
within the meaning of Article Two hereof.
{h) The term "property" shall include all
movable and immovable property and all rights
and interests in or claims to such property
whether matured or not, including all property,
rights, interest or claims transferred to or held
by third parties as nominees or trustee and all
property, rights, interests or claims transferred
by way of gift or otherwise or for consideration,
expressed or implied, but not including the rights
or interests of third parties to a bona fide sale for
full consideration, and shall include but shall not
be limited to buildings and lands, goods, wares and
merchandise, chattels, coin, bullion, currency, de-
posits, accounts or debts, shares, claims, bills of
lading, wai"ehouse receipts, all kinds of financial
instruments whether expressed in reichsmarks or
in any foreign currency, evidences of indebtedness
or ownership of property, contracts, judgments,
rights in or with respect to patents, copyrights,
trademarks, etc. and in general, property of any
nature whatsoever.
Article 11.
It shall be an offense :
{a) For any person whose property is affected
by this law to do or to attempt to do any act or
make any omission in derogation of the title or
interest of the Commission under Articles Two and
Three, or
(b) To assist or conspire with any other person
to do or to attempt to do any such act or make such
omissions as are specified in this article.
Article 12.
Any person violating any provision of this law
shall be liable to criminal prosecution.
Article 13.
All provisions of laws or decrees or parts thereof
which are contradictory to any one of the provi-
sions of this law or of any law or decree issued
under the provisions of this law are hereby de-
clared null and void.
FEBRUARY 24, 1946
285
Consultation Among the American Republics
With Respect to the Argentine Situation
EXCERPTS FROM MEMORANDUM OF THE U.S. GOVERNMENT
PART I: INTRODUCTORY STATEMENT
I
On October 3, 1945 the Department of State ini-
tiated consultation among the American republics
with respect to the Argentine situation.^ All of
the other American republics agreed to participate
in this consultation.
During the intervening period, this Government
has made a careful study and evaluation of all the
information in its possession with regard to Argen-
tina. An enormous volume of documents of the
defeated enemy, in many cases found only with
much difficulty and after prolonged search, have
now been studied and verified. German and Ital-
ian officials charged with responsibility for activ-
ities in and with Argentina have been interrogated.
Although this work of investigation continues, the
Government of the United States at present has
information which establishes that :
1. Members of the military government collab-
orated with enemy agents for important espionage
and other purposes damaging to the war effort of
the United Nations.
2. Nazi leaders, groups and organizations have
combined with Argentine totalitarian groups to
create a Nazi-Fascist state.
3. Members of the military regime who have
controlled the government since June, 1943 con-
spired with the enemy to undermine governments
in neighboring countries in order to destroy their
collaboration with the Allies and in an effort to
align them in a pro-Axis bloc.
4. Successive Argentine governments protected
the enemy in economic matters in order to jareserve
Axis industrial and commercial power in Argen-
tina.
5. Successive Argentine governments conspired
with the enemy to obtain arms from Germany.
This information warrants the following
conclusions :
1. The Castillo Government and still more the
present military regime pursued a policy of pos-
itive aid to the enemy.
2. Solemn pledges to cooperate with the other
American republics were completely breached
and are proved to have been designed to protect
and maintain Axis interests in Argentina.
3. The policies and actions of the recent re-
gimes in Argentina were aimed at undermining
the Inter- American System.
4. The totalitarian individuals and groups,
both military and civilian, who control the pres-
ent government in Argentina, have, with their
Nazi collaborators, pursued a common aim: The
creation in this Hemisphere of a totalitarian
state. This aim has already been partly
accomplished.
5. Increasingly since the invasion of Nor-
mandy, and most obviously since the failure of
the last German counteroffensive in Januai-y,
1945, the military regime has had to resort to a
defensive strategy of camouflage. The assump-
tion of the obligations of the Inter-American Con-
ference on Problems of War and Peace to wipe
out Nazi influence and the repeated avowals of
pro-democratic intentions proceeded from this
strategy of deception.
6. By its brutal use of force and terrorist
methods to strike down all opposition from the
Argentine people the military regime has made
a mockery of its pledge to the United Nations
"to reaffirm faith in human rights, in the dignity
and worth of the human person.
II
Prior to the Inter-American Conference on
Problems of War and Peace, twenty American
republics concluded unanimously that the Ar-
The complete text of the memorandum, released to the
press on Feb. 13, is printed as Department of State publi-
cation 2473.
^ Bt:iiz,etin of Oct. 7, 1945, p. 552.
286
DEPARTMENT OF STATE BULLETIN
gentine Government had not collaborated in the
war effort and could not therefore properly par-
ticipate in the Conference. At the conclusion
of the meeting, they deplored the fact that "the
circumstances existing before the meeting have
undergone no change that would have justified
the Conference in taking steps to re-establish
continental unity." No more clear-cut judgment
lias ever been rendered by a community of na-
tions with regard to the conduct of the govern-
metit of one of its members. And lest its judg-
ment be misconstrued, the Conference carefully
distinguished — as we must distinguish today — be-
tween the people of Argentina and the ruling
regime : "the unity of the peoples of America is
indivisible . . . the Argentme nation is and
always has been an integral part of the union of
tiie American republics."
It was in large measure a response to this
spirit of unity among the peoples of the Ameri-
can republics and a response to that faith which
animates the inter-American system, which
prompted the American republics once again to
accept the pledged word of the Farrell-Peron
Government.
By its adlierence to the Final Act of the jVIex-
ico Conference, the Farrell regime took a neces-
sary step to qualify for participation in the
treaty contemplated by Part II of the Act of
Chapultepec.^ But enjoyment of the benefits of
the Act of Chapultepec, as well as of other rights
under the Final Act of the Confei-ence, was con-
ditioned upon good faith by tlie Farrell Govern-
ment both in the assumption and in the execution
of the agreements and declarations approved by
the Conference.
Recognition of the Farrell regime and admis-
sion to the United Nations Organization were
not based on a finding that the regime iiad sat-
isfied its obligations. Recognition and admis-
sion to the United Nations Organization were
based on an undertaking by the Farrell Govern-
ment to comply with the agreements of the Mexico
Conference. As stated on May 28, 1945 by Secre-
tary of State Stettinius, Chairman of this Govern-
ment's delegation both at Mexico City and at San
Francisco :
' For text of the Act of Chapultepec, see Bulletin
of Mar. 4, 1945, p. 339.
' Bulletin of June 3, 1945, p. 1003.
= Bulletin of Aug. 26, 1945, p. 287.
"By voting to admit Argentina in these circum-
stances, the United States, . . . has by no
means changed its position that Argentina is ex-
pected to carry out effectively all of her commit-
ments under the Mexico City Declarations. On
the contrary, we consider that her admission to
the San Francisco Conference increases her obli-
gation to do so. We expect the Argentine nation
to see that this obligation is fulfilled." -
Several months later the Assistant Secretary of
State in charge of American Republic Affairs and
the alternate delegate of the United States to
the Mexico City Conference, Mr. Nelson Rocke-
feller, declared :
"This record shoAvs that while steps have been
taken toward carrying out the commitments there
are many important failures which have serious
implications. Too often .steps have been begun
or promised and not carried through to comple-
tion. The fact remains that many vital com-
mitments in which Argentina joined M'ith her
American Neighbors still remain unfulfilled by
her Government." ^
The acceptance of the pledged word of the Far-
rell Government repeated a process in vhicli the
American republics, in a spirit of genuiiie good
will towards the Argentine people, had patiently
participated during four years of war. From
shortly after Pearl Harbor until the uncon-
ditional surrender of the enemy, successive Ar-
gentine governments had coupled assertions of
full compliance with solemn promises of fu-
ture performance. This record, in itself, demon-
strated insincerity and would strongly have
supjjorted a charge of deliberate deception. To-
day we /xiiow the reasons for the important fail-
ures, the apparent reluctance, the unfilled vital
commitments, the promises to keep promises. Be-
hind the record of broken promises and repeated
pledges of cooperation we have proof positive
of complicity with the enemy.
This complicity compels us to doubt the motive,
the plan and jjurpose of every act of the present
Argentine regime. Such lack of trust will not be
cured by decrees or administrative orders, by sig-
natures to charters or by adherence to final acts
of conferences. It can be cured only when our
brother people of Argentina are represented by a
government which inspires full faith and confi-
dence at home and abroad.
FEBRUARY 24, 1946
287
III
The information in support of these charges is
respectfully submitted to the Governments of the
American republics for their consideration in re-
lation to the Treaty of Mutual Assistance to be
negotiated at the forthcoming conference at Rio
de Janeiro.
By its terms the Act of Chapultepec lays the
basis for a mutual assistance pact which will obli-
gate the member governments to assist one an-
other to meet an attack or a threat of aggression
from any source whatsoever. Furthermore, pur-
suant to Resolution IV of the Conference on
Problems of War and Peace, the pact would be
implemented by the creation of a permanent
military agency which would be charged with the
preparation of j)roposals for a closer military col-
laboration among the republics. This implemen-
tation would require a close cooperation in the
development of security plans of vital importance
to every American republic. It would also re-
quire cooperation in the maintenance of adequate
militarj' establishments for the defense of the
continent.
Such a defense structure can be built only on a
foundation of absolute trust and confidence. Be-
cause the Government of the United States did
not have such trust and confidence in the present
Argentine regime, it took the position in October,
1945 that it could not properly sign a military as-
sistance treaty with that regime.
It is submitted that the information transmit-
ted to the Goveriunents of the American republics
in this memorandum makes abundantly clear a
pattern which includes aid to the enemy, deliberate
misrepresentation and deception in promises of
Hemisphere cooperation, subversive activity
against neighboring republics, and a vicious part-
nership of Nazi and native totalitarian forces.
This pattern raises a deeper and more fundamental
question than that of the adequacy of decrees and
administrative measures allegedly enacted in com-
pliance with Argentina's obligations under Reso-
lution LIX of the Mexico Conference. The ques-
tion is whether the military regime, or any Ai'gen-
tine government controlled by the same elements,
can merit the confidence and trust which is ex-
pressed in a treaty of mutual military assistance
among the American republics.
The early sections of this Tnemorandvmi demon-
strate conclusively that Hhe totalitarian machine
in Argentina is a partnership of German Nazi in-
terests \oith a powerful coalition of active Argen-
tine totalitarian elements, lioth military and civil-
ian.''''
Part II produces specific and documentary evi-
dence of Argentine-Nazi Com,plicity, declaring
that the
basic source of this complicity consists of the pref-
erence for an Axis victory which those individuals
who have held the powers of government in Argen-
tina throughout this whole period have (except
for its disclosure to Nazi Germany) secretly en-
tertained.
In May 1942, acting President Castillo frankly
conveyed to Germany through authorized chan-
nels that he believed in and hoped for "the victory
of the Axis Powers" ; that he had "based his policy
upon that" desired result; and that, rather than
sever relations with the Axis, he had determined,
if necessary, "eventually to come out openly on
the side of the Axis powers". Those who seized
the reins of power in June 194.3 shared this at-
tachment even more deeply and implemented it in
many ways more fully described below.
The consequence of this basic choice between the
forces of fascism and of democracy was an intimate
and integrated pattern of mutual understandings,
cooperation, and assistance begun in the days of
Castillo and carried forward and completed under
the present military regime until it embraced every
significant sphere of interest in Argentine-German
relations.
Simply stated, the basic accord of which all these
ramifications were but details was that those gov-
erning Argentina sought from Nazi Germany the
military and political support for Argentina's
policy of isolation not elsewhere obtainable, and
the Nazis obtained freedom from any action tend-
ing materially to interfere with their operations or
prejudice their interests in Argentina, both during
and after the war. The growth, jDerfection, and
implementation of this conspiracy is hereinafter
described, under topical headings corresponding to
these various areas of interest.
Argentina's effort "to procure military assist-
ance from Germany'^ is pointed out as "One of the
most striking ca'cas of such coUdboration''\
After the military coup ductal of June 1943, the
Ramirez regime immediately resumed these ne-
gotiations, assuring the Nazis of their purpose not
288
DEPARTMENT OF STATE BULLETIN
to break relations and of their need for military
equipment to reinforce them in this position.
When these requests were advanced, the Ramirez
regime referred also to the plan of subversion
against neighboring countries which it had de-
termined to set in motion. These negotiations
continued throughout the sunnner of 1043, and
culminated in October 1943 in the ill-starred
Helhnuth mission. In this affair, the Argentine
Government and Himmler's secret intelligence
(Sieherheitsdienst) agents in Argentina selected
Osmar Hellmuth, an Argentine national, as their
common representative to enter into broad nego-
tiations with the German Government in Berlin,
not only for arms, but for many other types of
mutual assistance. This mission failed, but only
because of Hellmuth's arrest f?i route by the
Allies.
Upon the basis of these various negotiations
and conferences, the German Government under-
stood at the time of Hellmuth's departure that his
mission was designed to accomplish the following
objectives :
On^. Assure Germany that Argentina had no
intention of breaking relations.
Two. To arrange a safe-conduct for the Buenos
Aires.
Three. To negotiate regarding arms and other
war material.
Four. To arrange for shijiment to Argentina of
German armaments technicians.
Five. To arrange for replacement of the Ar-
gentine Charge d'Atfaires in Berlin, Herr Luti,
who was not pro-Nazi and therefore trusted
neither by the Argentines nor by the SD.
Six. To discuss other matters of mutual inter-
est (e.g., exchange of information between the
two governments with the help of the SD).
Argentina disclosed to the Nazi Government
another scheme to defend its pro- Axis policy;
the "essence of this scheme was the undermining
and suhversion of pro-Allied Governments in
neighboring countries and to draio them into a
pro-Axis '■Moc'' headed hy Argentind'K A comfinon
plan was "activitated with respect to Bolivia,
Brasil, Chile, Paraguay, and Uruguay'''. In each
of 'those countries Argentme-SD collal)oration
with domestic pro-Axis forces was '■''pressed for-
ward, under gui^lance and with aid, or promises
of it, from the Argentine military governinenf'.
During the Ramirez regime Col. Juan D. Peron,
Chief of the Secretariat of the Argentine War
Ministry, was the principal leader of the Argen-
tine conspirators.
In the section devoted to Argentina's political
and social collaboration with the Nazi Govern-
ment, evidence is produced of Argentine aid and
protection of Axis espionage throughout the
American republics, of the "devotion^^ of the Ar-
gentine confidential agents and intermediaries to
the Axis cause which is established by later re-
ports from, Erich Otto Meynen, the German
Charge d^Affaires unth the ranh of Minister in
Argeritina during President Castillo''s regime,
lohich stated that " '■effective execution of our po-
litical tasks is contingent upon the ever-height-
ened effort among our political friends.'' "
Other examples of Argentina's complicity with
the Nazis are cited in this part of the memo-
ranchim.: Argentine failure to repatriate Nazi
agents; that country''s protection and assistance
to pro-Axis press and manipulation of public
opinion; the protection of Nazi schools and or-
ganisations; and Argentine preservation of Nazi
economic power in its failure to control Axis firms
and in its transmission of funds for the Nazi
Embassy.
Part III, Nazi-Fascist Character of the Argen-
tine Regime, is analyzed, briefiy as follows:
General Analysis
The internal administration of the military
regime has passed through two phases. In the
first phase, which continued from the accession
to power until roughly the end of 1944, the mili-
tary rulers of Argentina clearly revealed a Fas-
cist-totalitarian mentality both in their j)ublic
statements and in their public acts. Their efforts
to organize and consolidate their revolutionary
regime paralleled those made earlier by the rising
dictators of Italy, Germany, and Spain. They
set out to create a Fascist state in the Western
Hemisphere, openly anti-democratic and authori-
tarian both in its basic ideologj' and in its opera-
tion. Following Nazi-Fascist-Falange methods
they suppressed individual liberties, liquidated
democratic institutions, persecuted their oppo-
nents by terroristic methods, created a state prop-
aganda machine for the dissemination of Nazi-
Fascist ideals, established a "corporate" labor
organization subservient to the government, and
FEBRUARY 24, 1946
289
adopted a program of military and naval expan-
sion obviously out of all proportion with the re-
quirements of the country's security. They dis-
solved the national Congress, outlawed all politi-
cal parties, and successfully resisted all pressure
to hold national elections. During this period the
Argentine authorities arbitrarily interfered with
the independence of the courts and through the
appointment of special Federal officials, thwarted
the normal development of the judicial and edu-
cational systems, and of labor. Federal ap-
pointees replaced the normally elected provincial
authorities, and were also used to control univer-
sities and labor organizations.
Certain policies and acts of an outstandingly
totalitarian character have continued to form an
integi-al part of the program of the Argentine
Government from June 1943 to the present.
These include the suppression of individual lib-
erties, police repression and terrorism, and the
corporate organization of labor. On the other
hand, from roughly the eve of the Mexico City
Conference on Problems of War and Peace (Feb-
ruary 21-March 8, 1945) to the present, while the
Argentine authorities were trying first to win
recognition from the other American republics,
then to gain a seat at the United Nations Con-
ference in San Francisco, and finally to establish
their claim to the full confidence of the other
American republics, they have ostensiljly followed
a less ardently Fascist policy.
The fact is that this opportunistic "change" of
policy to the second phase came only after the fail-
ure of the last German coimteroffensive in early
January 1945, when the inevitability of the Nazi
defeat became obvious to all. It having become
apparent that the program and ideals, which the
military rulers were trying to impose upon the
nation, were suffering defeat in Europe and in
the Pacific at the hands of the United Nations,
the Farrell Government began to modify its pol-
icy to one of defensive camouflage whose principal
characteristic was avowal of pro-democratic in-
tentions. Officials of the Government became less
outspokenly pro- Axis and Fascist-totalitarian in
their public statements. The purpose has been
obvious: to conceal and preserve a nucleus of Fas-
cist-totalitarian economic and political positions
with sufficient strength to serve as a basis for re-
version to the earlier program at some better fu-
ture opportunity. Acting always and only under
pressure either from democratic elements within
Argentina or from abroad, the leaders of the mili-
tary government qualified those policies which were
most conspicuously Fascist-totalitarian and which
had aroused the most virulent domestic opposition.
The conclusion is irresistible, however, that if
the present Argentine Government were relieved
of these jiro-democratic pressures it woukl quickly
expand the area, and intensify the nature, of its
Fascist activities. Individual rights guaranteed
in the Argentine constitution and endorsed by x^r-
gentina in the resolutions of the Mexico City Con-
ference and the United Nations charter are being
violated by the Argentine authorities today ; police
terrorism directed particularly against pro-demo-
cratic groups continues; and the only labor or-
ganizations legally recognized by the Government
are those established by the Ministry of Labor and
Social Security after the Nazi-Fascist cooperative
system. The elected representatives of the Argen-
tine jDeople have not been allowed to assemble for
moi-e than two and a half years. The .state of siege
has been continued with an interruption of only
a few weeks in August-September 1945. The Fas-
cist-totalitarian and pro-Axis character of the pol-
icy-making personnel of the Government remains
essentially unchanged. Many known Axis sym-
pathizers, who have long worked for the establish-
ment of a Fascist-totalitarian state in Argentina,
have either been appointed to or have continued
in public office. The forced installation of a pre-
dominantly civilian cabinet in October did not
change the character of the Government.
PART IV: CONCLUDING STATEMENT
In October 1945, when consultation concerning
the Argentine situation was requested by the
United States, it had substantial reason to believe
from the evidence then at its disposal that the
present Argentine Government and many of its
high officials were so seriously compromised in
their relations with the enemy that trust and con-
fidence could not be reposed in that government.
Now the Government of the United States pos-
sesses a wealth of incontrovertible evidence. This
document, based on that evidence, speaks for itself.
The Government of the United States looks for-
ward to receiving from the governments of the
other American republics the benefit of their views
in the premises.
International Organizations and Conferences
Calendar of Meetings
The United Nations :
General Assembly
Security Council
Economic and Social Council
London
London
London
January 10-February 15
January 17-February 16
January 23 (continuing in
session)
Civil Aviation Conference
Council of Foreign Ministers: Meeting of Deputies
Bermuda
London
International Labor Organization : Conference of Dele- London
gates on Constitutional Questions
International Technical Conniiittee of Aerial Legal Ex- Paris
perts (CITEJA) : 14th Session
Anglo-American Committee of Inquiry
Germany and Austria
January 15-February 11
January IS (continuing in
session )
January 21-Fel)ruary 15
January 22-January 29
Hearings opened Feliruary
15
Far Eastern Commission
Washington
February 26
North American Regional Broadcasting Engineering Washington
Conference
February 4 (continuing in
session )
Council of the United Maritime Authority
London
International Cotton Study Group: Subcommittee of the Washington
International Advisory Committee
February 4-12
February 18
West Inditin Conference
Extraordiiiiiry Meeting of the Directors of the Interna-
tional Meteorological Services (IMO)
Regional Air Navigation Conference
St. Thomas, Virgin Islands
(U.S.)
London
Dublin
International Monetary Fund and the International Bank Wilmington Island, Ga.
for Reconstruction and Development : Boards of Gov-
ernors
Fourth Session of the UNRRA Council
Atlantic City
February 21
February 25-March 2
March 4
March 8
March 15
The dates in tlie I'lilemlar are as of Feb, 17, 1946.
290
FEBRUARY 24, 1946
291
Activities and Developments
The General Assembly: Draft Resolution on
Wheat and Rice Submitted by Delegations of
China, France, the Union of Soviet Socialist Re-
publics, the United Kingdom and the United
States. The damage caused by war and the disloca-
tion of agricultural production resulting from the
shortage and dislocation of labour, the removal
of draught animals, the shortage of fertilizers and
other circumstances connected with the war have
caused a serious fall in world production of wheat.
In addition a large number of countries, includ-
ing some of those which are normally the largest
pi-oducers of grain, have suffered serious droughts
and have therefore reaped abnormally small
crops. The supply of rice is also so short as to
threaten a famine in certain areas. There is,
moreover, a serious risk of grain production in
the coming season being insufficient to prevent
continuing hunger; for these reasons the world
is faced with conditions which may cause wide-
spread suffering and death and consequently set
back all plans for reconstruction.
The General Assembly therefore,
1. Urges all governments and peoples to take
immediate and drastic action, both directly and
through the international organizations con-
cerned, to conserve supplies, by securing ade-
quate collection of crops from the producers, by
saving food and avoiding waste, and to ensure
the maximum production of grain in the coming
season.
2. Notes that several of the United Nations
have recently announced measures to reserve
grain supplies for direct human consumption and
to secure increased production:
3. Urges all governments to publish as full in-
formation as possible regarding their own sup-
plies and requirements of cereals and the steps
they have taken or are prepared to take to
achieve the objectives expressed in paragraph
one:
4. Requests the international organizations con-
cerned with food and agriculture to publish full
information in their possession on the world food
position and the future outlook, and to intensify
efforts to obtain as full information as possible
on this subject, in order to assist governments in
determining their short term and long term
agricultural policy.
Far Eastern Commission. Thomas D. Blake,
press officer for the Commission and Assistant to
Mr. McDermott (Special Assistant to the Secre-
tary of State for press relations), announced on
February 13 that the Commission has been in-
formed that the Soviet Union will be represented
by either its Delegate, the Ambassador at Wash-
ington, Andrei A. Gromyko, or his alternate, Min-
ister Counselor Nikolai V. Novikov. The Soviet
Union was not represented in the mission to Tokyo,
although Lt. Gen. K. M. Derevyanko is the Soviet
representative there on the Allied Council.
During the long return trip to Washington
since its departure from Tokyo on February 1, the
Far Eastern Commission has had the opportunity,
in some degree, to assess its mission to Japan, to
sort out and organize coherently some of the
wealth of information it acquii-ed there, and to ap-
IDreciate more fully the international significance
of the basic policy questions with respect to the fu-
ture of Jajjan, upon which the new Far Eastern
Commission will soon be at work.
The Commission's purjDose in going to Japan
was to study conditions on the spot — in other
words, to acquire a direct contact with occupa-
tional problems. Of primary concern, of course,
was consultation with the Supreme Commander
for the Allied Powers, who is responsible for the
execution of Allied policy in Japan.
Now the Commission can say, after due consid-
eration, that it has successfully accomplished its
mission. It has witnessed actual conditions, not
only in Tokyo and the great commercial cities of
Yokohama, Osaka, Kyoto, and Kobe, but also in
Sendai to the north, in rural areas, and in Kure
and Hiroshima. The Commission conferred per-
sonally with General MacArthur several times on
the broad aspects of the occupation. Furthermore,
it spent the greater part of its three weeks in daily
conferences with General Mac Arthur's Special
Staff Sections.
292
DEPARTMENT OF STATE BULLETIN
During its trip on the U.S.S. Moimt McKinley
to Pearl Harbor and thence via the Air Transport
Connnand to Washington, tlie Commission ac-
quired a keener sense of the scope and detail of the
information it has gathered. The subjects range
from reparations, and economics, industry, Labor,
natural resources, finance, and the Zaibatsu, to
science, public health and welfare, government,
and war criminals. It will take additional time to
digest these facts and to formulate appropriate
policies.
The Commission has been impressed with the
statesmanship of tlie Supreme Commander and
his Stat!.
United Maritime Authority Council.^ The final
meeting of the fourth and final session of the
Executive Board of tlie United Maritime Avi-
thority was held on February 12 under the chair-
manship of Sir Cyril Hurcomb, United Kingdom
member of tlie Board.
At earlier meetings during the session the
Board approved arrangements for the closing
stages of the Authority which terminates on
March 2.
Because of the special experience of shipping
problems which they have gained during the pe-
riod of the United Maritime Authority the Board
considered that it would be helpful to govern-
ments if they made recommendations to their
governments as to the situation in the following
few months after the UMA ends on IMarch 2.
The Board were unanimously of opinion that
the return to normal processes of international
shipping business should not be retarded. The
Board were also unanimously of opinion however
that certain difficulties and problems might arise
in the shipping situation after the termination on
March 2 next of the Agreement on Principles of
August 1944. This situation did not appear to
the Board to call for any continuation of the
comprehensive control of UMA, but they came
to the conclusion that it would be desirable for
nations to take certain measures which are de-
signed to facilitate the prompt and efficient trans-
portation of relief and i-ehabilitation cargoes.
These arrangements are to operate for a limited
period of eight months. Accordingly, they
agreed upon certain recommendations for the
' Released to the press by the United Maritime Author-
ity Council Feb. 12.
- Released to the press Feb. 13.
consideration of the governments they represent.
These recommendations will be i-eferi-ed imme-
diately for consideration to the 18 governments
who are members of UMA and to other govern-
ments who may desire to join in the proposed new
arrangements.
The 18 governments who are members of UMA
are Australia, Belgium, Brazil, Canada, Chile,
Denmark, France, Greece, India, Netherlands,
New Zealand, Norway, Poland, South Africa,
Sweden. United Kingdom, United States, and
Yugoslavia.
The Second Session of the West Indian Con-
ference - will open in St. Thomas, Virgin Islands
of the United States, on February 21 and will
last three weeks. Sessions of the Conference are
held under the auspices of the Anglo-American
Caribbean Commission which is shortly to be
renamed in a joint four-nation communique as
a consequence of the recent addition of the
French and Netherlands Governments as Com-
mission members.
The first session was held in Barbados, British
West Indies, in March 1944. Under a system of
I'otation, the chairman of the Conference at St.
Thomas will be Charles W. Taussig, United
States Co-chairman of the Commission. The two
other United States Commissioners, Rexford G.
Tugwell, Governor of Puerto Rico, and Ralph J.
Bunche, of the Department of State, will attend.
Officials of the Department of State and other
United States Government departments will also
be present as advisers.
The British representatives at the Conference
will be headed by Sir John Macpherson, British
Co-chairman of the Anglo-American Caribbean
Commission and Comptroller for Development
and Welfare in the West Indies, and R. D. H.
Arundell, resident British Commissioner in
Washington.
The French Government has appointed three
Commissioners who will attend the Conference.
They are Madame Eugenie Eboue, Deputy from
Guadeloupe to the French National Assembly and
widow of the late Colonial Administrator Felix
Eboue; George Hubert Parisot, Governor of
Martinique; and Jean de la Roche, Head of the
Colonial Section of the French Press and Infor-
mation Service in the United States.
The Netlierlands Commissioners are Professor
Dr. J. C. Kielstra, Netherlands Minister to Mex-
Ft:BRUARY 24, 1946
293
ifo. and L. A. H. Peters, Agricultiual Attache,
Netlieilands Embassy, Washiiijijtoii.
More tlian five and a half million people will
be re])iesented by delegates attending from the
colonies and territories of the four nations t'oni-
])rising the Commission. Three of the countries
concerned — British, French, and Netherlands
(luiana — ai'e on the South American mainland;
one — British Honduras — forms part of Central
America. All of the remainder are islands.
A wide variety of subjects of interest to the
Caribbean area will be discussed at the Conference.
'J"he agenda follows:
A. Opening Address by the Governtn- of the
■Virgin Islands of the United States.
B. Message from the President of the United
States; ojJening address by the Chairman of the
Conference Charles W. Taussig; followed by
adilresses by British, French, and Netherlands
lepresentatives on the Caribbean Commission.
I'lu'f I . Prv<jirxs Report
Re^Jort on significant developments in the area
in relation to the first session of the Con-
ference.
Part II. 0 rganizational Matters
(a) Procedure for future Conference agenda
(b) How the Caribbean Commission can best
serve the region
Fart III. Consideration of Certain Basic Prob-
lemx of the Area
(a) Agricultural diversification
(b) Industrial diversification
{(■) Trade within the Caribbean
((/) Transportation
{(■) Health:
(1) Health education and exchange of health
information
(2) Nutrition with special reference to
school-lunch programs
(3) Quarantine
( /' ) Research
( 1) Role of Caribbean Research Council
Part IV. /Subjects Peco?n?neiided for Specific
Aciion
(a) Tourist project
(h) Local crafts: Development of production
and marketing on a regional basis
(c) Sociological survej's
(d) Conference of soil scientists
UNRRA Fourth Council Meeting.' At the in-
vitation of the Government of the United States,
the fourth session of the Council of the United
Nations Relief and Rehabilitation Administra-
tion will be held in Atlantic City, N. J. The ses-
sion will open on March 15 at the Hotel Traymore.
A brief meeting is planned, dealing with policy
(juestions in connection with the relief and rehabil-
itation program in Europe and Asia. The agenda
will be adopted at the opening meeting of the
Council session.
'Released to the pi-e.ss by UNRRA Feb. 14.
The Record of the Week
Our Foreign Policy and Its Underlying Princijjles and Ideals
By ASSISTANT SECRETARY BRADEN
LET vs EXAMINE the principles -which guide our
j foreign relations and tlie basic policies wliich
result therefrom. Also what are the general
applications and expressions we give to those
policies?
It goes without saying that the first duty of our
Government, and consequently its most funda-
mental policj', must be to protect and promote the
interests of the United States, of the people who
make up the United States. There is notliing cyn-
ical or sinister about this practical policy. For one
thing, we know now, if we never knew it before,
that our national welfare, far from being in con-
flict with the welfare of the other nations, must be
coordinate with it. It is not as if there were just
so inuch welfare to be had in the world, .so that
the more we en]\)y the less there is left for others.
On the contrary, we shall })rosper in the long run
only as the world prosjjers. Our policy of self-
interest, if it is in a .sense selfish, must alst) be al-
truistic and our interests always legitimate. It
nuist be a ])olicy. if you will ])ermit uie to say so,
of altruistic as well as legitimate self-interest.
Secondly, we recognize — to use a homely
phra.se — that honesty is not f)nly the best — it is
the only sane jjolicy. Unless we are consistently
honest we will not be trusteil in the work!, and we
will have little influence where we are not trusted.
Unless what we say can be and is believed, what
we say will have little weight with other nations.
The strength and effectiveness of a nation resides
as much in its hon(u-able cliaracter and reputation
as in the number of guns it has available. I nuiy
«ay here, by way of example, that the mediation
of the Chaco dispute would never have succeeded
if the parties to it had had any reason to mi.strust
the honesty and impartiality of the mediators. It
Tlie above is an address given before The Celestials in
New York, N. Y., on Feb. IS. Roiniest.s for complete text
of the address should be sont to the Division of Research
and I'\ililie:ilioii. Department of Slate.
is perfectly clear that we nuist hew to the line of
honesty and absolute good faith if we, as one of
the great nations of the world, are to discharge
in the atomic age our responsibilities to ourselves
and to mankind. It uuist be our basic policy to
work for the permanent establishment in interna-
tional relations of tho.se principles of morality and
I'eligion that we uphold in our domestic I'elations.
The alternative is not to be contemplated.
Thirdly, we must take fidl account in our in-
ternational relations of the political and social
princijiles upon which this nation was founded,
enunciated in oiu' Declaration of Independence and
in oui- Constitution, including the Bill of Rights.
The day has passed when we can renuiin uncon-
cerned at slavery an<l tyranny outside our borders.
AVith the advances that have been made in tech-
nology, the contacts between nations are more
niunerous, more frequent, more critical. The af-
fairs of nations have l)ecome so nuitually inter-
related and entwined in good times and so en-
tangled and embi'oiled in bad times that we must
increasingly regard the international community
as a whole. We should apply to the whole world
the dictum applied by Abraham Lincoln to our
own union of States: that it cannot endure half
slave and half free. Consequently, as a nuitter of
self-preservation and the survival of the principles
for which Me stand, while we do not uiulertake to
impose our system of government on others, we
must necessarily feel a greater and more active
friendship for those goveriunents that rest on the
freely and ])eriodically expressed will of the gov-
erned than for governments that depend for their
existence on a denial of such popular ex]iression.
These three fundanuMital and guiding principles
that govern our international relations have found
their expression in certain broad policies to which
this nation has explicitly and consistently com-
mitted itself.
First amono; these, in the historical order, is the
294
FEBRUARY 24, 1946
295
.Monroe Doctrine, enunciated l)y President Mon-
roe in ISl'3, when he declared : (1) that the Ameri-
can Continents were not to be considered as
subjects for future colonization by any European
power; and (2) that the United States would con-
sider any atteni]it on the part of those pow-
ers to extend tlieir i)olitical system to any por-
tions of this hcniispliere as danfiprous to our
peace and safety. Thus the United States warned
the overseas powers against any attempted acqui-
sition of territoi-y in the New World, and likewise
against any attempt at propagating their auto-
cratic jDolitical system in the soil of the New World.
While to begin with we lacked the power to en-
force the ^lonroe Doctrine and at times we may
have allowed ourselves temporarily to pervert it.
on net balance our record compai'es favorably
with that of any other nation and for some j'ears
past the Doctrine has meant what it was origi-
nally intended to mean. It is a national protective
doctrine that in no way injures or thi-eatens the
legitimate interests of any other nation. Its es-
sential character and high purpose have been im-
plicitly recognized by the American republics
generally, which at Habana in 1940, at Rio de
Janeiro in 1042, and on other occasions have joined
in their determination that this hemisphere shall
be defended against such territorial ambitions or
such attempts at the imposition of undemocratic
political systems as have been manifested by
aggressor nations overseas. Thus the Monroe
Doctrine, while it continues to represent the uni-
lateral policy of the United States, is in com-
l>lete harmony with the joint, nndtilateral policy
adojited by the American republics and expressed
in the inter-American system.
This hemisphere need no longer fear any at-
tempt from overseas at territorial conquest or col-
onization. But we must remain fully aleil to pre-
vent the infiltration of any foreign system or
'theory of government.
Secondly, in keeping with o\n" determination
to govern our international relations by our l)asic
national principles and ethical tenets, we have
developed and given expression to the policy of
the good neighbor. Like the Monroe Doctrine,
this policy has on occasion been misinterpreted or
only partially understood. It is not, for exam-
ple, a policy of purchasing friendship by spending
money abroad. As originally enunciated by
President Roosevelt in his first inaugural address,
it is the policy of "the neighbor who resolutely
respects himself, and, because he does so, respects
the rights of otiiers — the neighbor who respects
his obligations and respects the sanctity of agree-
ments in and with a world of neighbors." I call
your attention to the fact that the root of this
policy is scif- respect and the trunk which grows
out of it is mutual respeet. From this trunk, in
turn, grow the branches and the fruits of inter-
national collaboration. In other words, the
premise of collaboration under the good-neigh-
bor policy is that the collaborating nations re-
spect one another because they are themselves,
in the deepest meaning of the terms, respectable
and self-respecting. The policy of the good
neighbor inevitably implies a community of good
neighbors, self-respecting neighbors. Conse-
quently, it is a matter of the utmost gratification
that the American rejniblics have adopted the
policy as a conunon one and have, in the great
majority of cases,, lived up to its high standards.
Inherently a part of the good-neighbor policy is
this country's policy and its obligation to refrain
from intervening in the internal or external af-
fairs of any other American state. There was a
time when it was considered that in the absence
of a competent international authority, an au-
thority representing the community of nations,
a state had the right to intervene in the affairs
of its neighbors for the purpose of jirotecting its
just interests. One trouble with this doctrine
was that, in practice, it enabled the strong, on their
own account, to judge in their own cause and to
enforce judgment in their own cause against the
weak. Under this doctrine, while any other
American republic might have as much right to
intervene in the affairs of the United States as the
United States had to intervene in its affairs, it
did not, like the United States, have the power
to exercise such a right. The conscience of the
United States, as of the other American repub-
lics, was in the long run unwilling to accept a
right of unilateral intervention that, in the nature
of things, was bound to frustrate an even-handed
justice. In our domestic affairs, except in cases
of self-defense, a citizen must appeal to the au-
thority of the conununity for the enforcement
of justice against his neighbor, but he cannot be
allowed to practice such enf<n-cement for himself
and by himself. Consequently, even if we were
not committed as we are to refrain from uni-
lateral intervention, such intervention would still
be obnoxious to us as being contrary to the j^rin-
296
ciples of equity that we wish to see establislied
in the world. One of the clear principles under-
lying the United Nations Organization is that
the international enforcement of justice is a pre-
rogative of the international community, not of
any individual member thereof.
The United States recognizes that the prepon-
derance of its power in the inter-American com-
munity of nations imposes on it a special responsi-
bility to exercise the most scrupulous restraint, to
lean over backward — so to speak — in honoring its
policy and obligation with respect to non-inter-
vention. It is clear that, since we art bound to be
engaged in continuous transactions and intimate
contacts with our fellow American republics —
since we all live in the same continental abode —
whatever we refrain from saying and whatever we
refrain from doing may constitute intervention
no less than what we do or say. The carrying (jn
of ordinary diplomatic relations and their aaneni-
ties with another govermnent may, in default of
some positive and explicit indication from us, be
taken as approval ancl encouragement of that gov-
ernment's policy, and thus may constitute inter-
vention in favor of that government's policy.
Therefore, as I have so repeatedly stated, we must
be scrupulous to avoid intervention by action and
by inaction alike.
I would be giving a very partial and thus mis-
leading picture of this (iovernnient's broad policy
if I did not emphasize its positive aspects. We.
the United States, represent certain explicit
ideals and principles that we have defended at a
terrible cost in life and treasure on the battlefields
of the world, and that we are determined shall
be realized, by every legitimate means in our
power, throughout the world. These positive
ideals, these objectives, these principles have been
given clear and eloquent expression in the United
Nations Charter and in the 12 points of foreign
policy set forth by President Truman in his speech
of October 27. 1945. They are the principles of
democracy itself, and thus represent an accept-
ance in the international sphere of the basic prin-
ciples embodied in our Declaration of Independ-
ence and Constitution. They form the common
basis on which the American republics have asso-
ciated themselves, and without which their asso-
ciation could not exist. They are our common
ground. That is why, when any American gov-
ernment, in contravention of its commitments and
the aspii-ations of its own people, violates those
DEPARTMENT OF STATE BULLETIN
principles, it attacks the very foundation of the
inter- American system.
I shall n(jt enumerate these principles here.
Let me emphasize, however, that they are all ex-
jiressions of our regard for the inviolable dignity
of tlie human individual, by virtue of wjiich we
conceive governments to be instruments devised
by the people for the protection of their basic
lunnan rights and the enhancement of opportuni-
ties for the exercise of those rights. Consequently,
in the most fundamental sense, no government
that denies those rights and uses force to prevent
their exjiression can be considered in our eyes to
be a legitimate, and thus a respectable, govern-
ment. Our own conscience denninds that we make
as clear a distinction as possible between, on the
one hand, the legitimate governments "deriving
their just power from the consent of the gov-
erned", nnd, on the other hand, those governments
vvhicli usurj) })()wer from the people.
Within the framework of these broad principles
and policies, we have certain specific ])olicies bear-
ing on particular situations and adjusted to meet
those situations.
I have already indicated that the good-neighbor
policy, based on mutual I'espect between self-re-
specting nations, is expressed through collabora-
tion ami mutual assistance. It is thus our policy to
give active help to our fellow American republics
in theii- efforts to raise their standards of living,
of education, and of health. We recognize that in
doing this we are, in actuality, contributing to our
own well-being. Here is a concrete instance of
what I have called altruistic self-interest. For by
helping to raise these standards in the other
American republics we are strengthening the
foundations of our own security by providing the
essential conditions of orderly and democratic gov-
ermnent among our neighbors, and we ai'e also
strengthening ourselves economically by building
better markets for our own products.
Our cooperation is not confined, however, to the
general economic front. The American republics
aspire to a continuing social and cultural advance-
ment, all the aspects of which are inevitably in-
terconnected and in a large degree interdependent.
By our active programs for the exchange of books,
students, and teachers with the other American
reiniblics, we are constantly strengthening the
FEBKLARY 24, 1946
297
foiuuliitidns of ilciuocracy in the hemisphere and
j)r()iiiotin<T peace throiijrh imitual iinderstandiug.
We are thus helping one another to progress on
all fronts for our conmion benefit.
In short, the community of American nations is
trying, through cooperative effort, to establish a
workable system of peace, security, and prosperity.
It is a system that does not in the least threaten
legitimate national interests anywhere else in the
world. On the contrary, to the extent that it is
.successful it provides an area of order and prog-
ress, of freedom under law. that contributes effec-
tively to international stability and the realization
throughout the world of tho.se ultimate objectives
proclaimed by all the great religions of mankind.
In this lies our hope. For the atomic bomb and
the other terrible and devastating implements now
in our hands are dangerous only in so far as men
use them dangerously. Let us make no mistake
about it. The atomic bomb is not a problem in
itself. It merely aggravates an old moral problem,
which is the problem of man himself.
Relations With the Yemen
Proposed
[Released to the press Kelininry 11* I
The Government of the United States is plan-
ning to enter into relations with the Government
of the Yemen. His Majesty the Imam Yahya,
King of the Yemen, has invited the Government
of the United States to send a Special Diplomatic
Mission to his Kingdom to discuss a ])roposed
agreement of commerce and friendship. The mis-
sion, the personnel of wliich will be announced in
the near future, is expected to proceed in March
or April of this year. The negotiations will prob-
ably be held in Sana'a, capital of the Yemen.
The Governments of the United States and of
the Yemen have for a number of years been con-
sidering the advisability of establishing relations
with each other. The matter came up again early
in 1945 when Mr. Harlan B. Clark. American
Consul at Aden. Arabia, paid an informal visit to
Sana'a at the invitation of the King of the Yemen,
His Majesty, the Imam Yahya.
The Yemen has treaty relations with a number
of countries, including Egypt. France. Great
Britain, Iraq, Italy, Saudi Arabia, and the Union
of Soviet Socialist Republics.
Organization of U.S. Mission
To Observe Elections in Greece
[Released to the press February 141
Henry F. Grady, head of the United States
Mission to Observe Elections in Greece, will de-
]iart for Athens by Army plane at about 4 p.m. on
February 15 from the A.T.C. base at the National
Airport.
Mr. Grady, who holds the rank of Ambassador
as personal representative of President Truman,
will be accompanied by James Grafton Rogers,
former Assistant Secretary of State and a New
York attorney, and Herman B. Wells, president
of the University of Indiana. Both hold the per-
•sonal rank of Minister.
Other members of Mr. (Jrady's immediate
|)arty who will accompany him include Reginald
P. Mitchell. Assistant to the Special Assistant to
the Secretary of State, who has been designated
as press officer; William Barnes, administrative
officer of the American Delegation: and William
O. Baxter, of the Division of Near Eastern Af-
fairs, Department of State.
This will be the final plane of the American
Delegation leaving for (ireece, following the de-
parture of 14 other planes bearing Delegation
personnel which have left at intervals beginning
January 7.
This final group will proceed via the Azores,
Casablanca, and Rome to Naples, where they will
join the bulk of the civilian personnel, number-
ing approximately 90, to pursue an intensive ori-
entation course for the week of February 18 at
the Naples suburb of Bagnoli.
Pursuing this orientation course also will be
approximately .500 officers and enlisted men of the
United States Army, who will constitute the ob-
servation teams representing the United States.
Army personnel will be under the direction of
Maj. Gen. Harry J. Malony, U.S.A.. who will
bear the personal rank of Minister on this assign-
ment.
Major General Malony will meet INIr. Grady's
party in Bagnoli. as will the three other members
of the mission with the personal rank of Min-
ister, all of whom have jiroceeded to Italy by
earlier planes. They include Walter H. Mallory,
editor of Political Harulhool' of the World. Jo-
seph C. Green. Adviser to the Secretary of State
on Arms and Munitions Control, and William
298
DEPARTMENT OF STATE BULLETIN
AVesley '\^';l_vm;l(■k. editor of the Des Moines Rfff-
ister and Tribune.
The entire gronp assembled at Ba<i;noli will de-
part for Greece on February 24 and 2.-1 and pro-
ceed to staff the various offices which will be
established there.
In Conjunction with reiiresentatives of the Gov-
ernments of Great Britain and France, which will
jointly participate with representatives of the
United States (iovernment in observing the elec-
tions, the central headquarters will be estab-
lished in Athens, with district boards to be estab-
lished at Athens, Hcraklion (Crete), Tripolis,
Patras, and Salonika, and with sub-district head-
quarters to be established at Larissa, Kavalla, and
either Preveta or Janina.
Mr. Grady and Major (ieneral JNIalony will
make their headquarters in Athens, while the five
civilian Ministers will establish offices respectivelj'
at the five district headquarters.
The press headquarters will be established at
Athens and headed by the press officers of the
American, British, and French Delegations.
The press officer of the American Delegation, in
cooperation with the responsible officers of the
United States Army, will assist rejn'esentatives
of the American press in connection with billets,
communications, and transportation.
The elections have been designed by the Greek
Government to be held on March 31. 1946.
Recognition of Rnmanian
Government
EXCHANGE OF NOTES BETWEEN THE
U.S. AND RUMANIAN GOVERNMENTS
[Ui'Icnst'd to tlH' press T'Vhruary 15]
Viwffic/al fruiixlafidH hij Uanianian Foreign Office
of note dated Fehrnnrij 7. lHJid from G. Tcdarencu.
Minister of Foreign Affairs
I have the honor to acknowledge the receipt of
your letter addressed to His Excellency the Presi-
dent of the Council of Ministers, Dr. Petre Groza,
on February 5, 1946, in which yon notified that
the United States Government are prepared to-
ward recognition to the Roumanian Goveriunent.'
' For text of note see Bulletin of Feb. 17, p. 25n.
"For article liy Jlr. Mill on llie IraiiiiiiL: nn)t;i-:nii see
Bulletin of Feb. 3, p. 1-18.
The Roumanian tjovermnent received this noti-
fication with the deejiest satisfaction and I believe
that it will constitute the beginning of the resump-
tion of the old relations of friendship and coopera-
tion which existed between our countries.
At the same time, the Roumanian Government
exiiress their wish to be put in the position to
proceed at the earliest date to the reestablish-
ment of our dij^lomatic relations, by the ajijioint-
ineiit of a Roinuauian representative in Washing-
ton.
Note delivered to the Rumanian Government hy'
Mr. Burton Y. Berry, Uriited States PoUtieal
Representative for Rumania, Fehruary 1\. 19!fi
My Government has been pleased to receive the
communication of February 7, 1946 from the ^lin-
ister for Foreign Affairs Avliich my Government
considers happily confirms the United States Gov-
ernment's understanding of the assurances re-
ceived from the Rumanian Government in execu-
tion of the decisions taken at Moscow. In the cir-
cumstances the United States Government is pre-
pared to entertain a request for its agreement to
the appointment of a Rumanian Envoy Extraor-
dinary and ^linister Plenipotentiary to the I'nited
States.
Philippine Foreign Affairs
Training Program'
[Released to the press February l."i]
The first group of Filipinos to participate in a
training program designed to assist the Philip-
pines in the conduct of their own foreign relations,
when independence is gi'anted on July 4, com-
pleted the Washington phase of its work on
February 1.5.
The occasion was observed with a ceremony
which featured a discussion of the plans f(n' the
Philippine Government's new Department of
Foreign Affairs and its Foreign Service which
will be created with independence on July 4.
Participants in the ceremony included Brigadier
General Carlos P. Romulo. Resident Commis-
sioner of the Philippines; Julian F. Harrington,
•Deputy Director of the Office of the Foreign Serv-
ice; Richard K. Ely, of the Office of the High
Commissioner for the Philii)|)ines. and Frank P.
Lockhart, Chief of the State Department's Divi-
sion of Phili|)|)ine Affairs.
With the completion of the work in the State
FEBRUARY 24, 1946
299
Depuitineiit, it is now phiiiued to detail the Fili-
pino trainees to American embassies and consnl-
ates abroad where they will receive practical
training in tlie field.
Plans to assist in developiiio; a Pliilipi)ine For-
eign Service after indei)endence and to aid in
establishing a Department of Foreign Affairs for
the new repnblic were devised several years ago
but were interrupted by the war. Efforts to initi-
ate the program were resumed after V-J Uay,
and the first group arrived in the Department of
State on December o, li>4i"). The initial group
consists of Jose F. Imperial, Tiburcio C. Baja,
^'icente I. Singian, Manuel A. Adeva, and Can-
dido L. Elbo. A second group of 15 Filipino For-
eign Alfairs trainees is expected to enter the
Department for training not later than March 15.
The trainees are employees of the Philip]iino
Conunonwealth, but while they are detailed to the
Department and to American diplomatic estab-
lishments abi-oad they are subject to the rules and
regulations of the Foreign Service. In addition
to lectures and training work especially designed
for them, they have attended most classes of the
current Foreign Service Officer's Training School.
In the field, they will be given an opportmiity to
participate in the varied activities of the offices
to which they are detailed. The training progi'am
is under the supervision of Edward W. Mill, Act-
ing Assistant Chief of the Division of ^Philippine
Affairs.
U.S. Interest in Italian
Elections
Italian people a free government. That pledge
was solemnly renewed in the Joint Declaration
of October 13, 1943, which stated that "nothing
can detract from the absolute and untrammelled
right of the people of Italy by constitutional
means to decide on the democratic form of gov-
ernment they will eventually have".
Italy has given much to western civilization.
What we call comnninal liberties, the liberty of
the citizen to appoint his leaders and to hold
them responsible, found their expression in the
Italian cotmin! of long ago. The Italian Con-
stituent Assembly will have a delicate and an
imposing task in giving a constitution to a coun-
try known as the Mother of Law. In that
task it will have our best wishes and our
encouragement.
Death of Philip O. Chalmers
Statement by THE SECRETARY OF STATE
[ReletisiMl to file press rcljruary 15)
I was deeply grieved to learn a few minutes ago
that Philip O. Chalmers, Chief of tlie Division of
Brazilian Affairs of the Department, died this
morning in Kio de Janeiro, where he had gone as
a member of the United States Delegation to the
inauguration of the new President of Brazil.
Mr. Chalmers' death is a shocking loss. His con-
tribution to the cause of Brazilian-United States
relations has been outstanding and his counsel
will be sorely missed. His death will be keenly
felt by his colleagues in the Department and his
many friends in the United States and Brazil.
Statement by THE SECRETARY OF STATE Sanitary Convcntion, 1938
[Relcaserl to the press Feliriiar.v 11]
The United States Government is keenly inter-
ested in the coming Italian elections, during
which the people will elect a Constituent Assem-
bly to carry out the grave task of drafting a new
constitution.
Our interest in the elections of an Italian Con-
stituent Assembly is easy to explain. Even be-
fore our armies landed on Italian soil to rid Italy
of Fascist and Nazi oppression, we pledged the
Brazil
The French Embassy has informed the Depart-
ment that on July 19, 1945 the Brazilian Ambas-
sador deposited his Government's instrument of
ratification of the convention modifying the in-
ternational sanitary convention of June 21, 1926,^
which was signed at Paris October 31, 1938.^
' Treaty Series 7(i2.
-League of Nations Ti-eaty Series 205.
300
DEPARTMENT OF STATE BULLETIN
Some Stej)s in the Reconstruction of Europe
By WILLARD L. THORP
ONE WOULD likp: TO THINK tliiit the termination
of hostilities has brought to an end the tragic
suffering caused by wai-. Unfortunately, this is
not the case. The completion of full-scale military
ojjerations solved many jjroblems, but it has also
created new and urgent ones. As the war went on,
the supplies of goods on hand in Europe gradually
disappeared, and the amount of destruction and
disorganization increased in a tremendous cre-
scendo.
The military controls gave some semblance of
order, but those quickly disajjpeared in wide areas.
For example, during the war the (iermans forced
many so-called "slave workers" to mine coal.
Now many of these workers have returned to their
homelands but new coal miners have not replaced
them. Those who are at the mines must devote
nnich of their energy to obtaining food, repair-
ing their homes, and restoring their weakened
muscles. The process of production is ct)mplicated
by wrecked mines, inadequate repair facilities,
lack of skilled miners, and shortage of food witli
which to feed the miners. Coal is merely an il-
lustration of countless other situations. It would
not be a strong statement to say that our innnediate
and prime task in the reconstruction of Europe is
to keep people alive.
This post-war crisis was well anticipated by re-
sponsible people in this country and elsewhere. It
was realized that the survival of millions of per-
sons would depend upon solving problems of fi-
nance, shipping, supplies, and distribution. It was
also realized that many millions of persons — dis-
placed persons — would be stranded in various parts
of Europe and would require special care. For
a while it was thought that the financial problem
might be the knottiest. In anticipation of these
needs, IJNRRA, the first of the United Nations
organizations, was organized as early as the fall
of 1943 to give aid to countries which had no "ca-
pacity to pay". It was expected that the enormous
supply organization built u]) during the war could
easily handle the physical goods. However, even
though UNRRA has funds to provide relief in dev-
astated areas, and other countries such as France
and liclgium have available funds to spend, the
situation is still serious.
The big problem right now is the actual world
shortage of essential goods. At first, it looked as
tliough the most serious problem would be with
coal. It is such an essential commodity — trans-
portation, power, factories, and heat all depend
upon it. The great centers of coal production on
the continent of Europe were operating at tiny
fractions of capacity', and the best efforts of every-
one concerned could only bring about gradual im-
provement. But the shortage has been and still
is tremendous. The United States has never ex-
ported significant quantities of coal to Europe.
But we are doing it. One and one half million
tons of coal moved to Europe in January, and we
hope to step that up even higher. That at least
has kei)t the essential fires burning, although most
homes in Europe are without heat other than fire-
wood dui'ing these freezing months. If things go
well. Europe should be able to supply most of her
own fuel requirements next winter. However,
that cheerful thought provides few thermal units
to keep people from freezing or to turn factory
wheels in the present winter months.
But today, of all the scarce goods, wheat is the
scarcest. Only last week President Truman stated
that, "For the world as a whole, a food crisis has
developed which may prove to be the worst in
modern times. More people face starvation and
even actual death for want of food today than in
any wai- year and j^erhaps more than in all the
war years combined." Wheat crops in Europe and
North Africa and rice crops in the Far East have
been far below expectations. Extraoi\linary
droughts and the disruption of war are the basic
reasons. And Europe hud no carry-over stocks to
help he^.
The human problem can be seen from the figures
Excerpts ficim ail address delivered before the Service
Bureau for Women's ( )rs;iiiizati<)iis in Hartford. Conn.,
Fel). 11 and released to the press on that date. llr.
Thorp is Deputy to the Assistant Secretary for Economic
,\fl'airs, Department of State. Requests for complete
text of this address should be sent to tlie Division of
Itesearch and Publication. Department of State.
FKBRVARY 24, 1946
301
on food consumption. Per person consumption in
the United States now runs about 3.300 calories
per day. More than 125.000,000 people in Europe
will shortly be getting less than 2,000 calories per
day. and another 28.000,000 less than 1,500.
"While I will discuss only wheat, I must also add
tliat there exists a similar situation in the Far East
in rice. And the shortages in meat, fats, and sugar
greatly aggravate the situation. India is threat-
ened with one of the worst famines in its history.
Italy and North Africa are in especially bad shape.
The countries of Europe are doing what they
can. France has reintroduced bread rationing.
Great Britain lias announced cuts in rations of
fats and a return to the dark wartime loaf of bread.
Fortunately for the world, we had a record
wheat crop last year in this country. During tlie
next G months, the importing countries need 17
million tons of wheat. The estimates of wheat
available are less than 12 million tons. From the
other surplus-producing countries. Canada, Aus-
tralia, and Argentina, it may be possible to expoi't
6 million tons. It will be almost a superhuman
accomplishment if we can export a like amount.
It will mean, first, that we reduce our own re([uire-
ments at various points, and, second, that we suc-
ceed in organizing our transportation, port, and
shi{)ping facilities for an effort quite as great as
tiiat required during the war.
The President has already set in motion a pro-
gram which includes a number of steps which the
Government is taking to help, such as the prohibi-
tion of the use of wheat in making alcohol and a 30
percent reduction in beer: the raising of the
amount of flour to be made from each bushel of
wheat; the control of inventories; the control of
exports; the establishment of rail priorities;
et cetera. But the most important step cannot be
taken by the Government itself — the actual saving
of wheat by individuals, bj' you and me. We can
do that by stopping the waste of bread. This is
now a war against starvation. We are in it, each
and everyone of us, and we cannot escape the
responsibility.
It is obvious that these immediate stipply prob-
lems which I have been discussing are only the
very first phase in the process of bringing Europe
back to a state of economic healtli. The tremen-
dous task of reconstructing a war economy to a
])eacetimei)asis may be seen vividly in the case of
England. England was at war for six full j'ears.
The evidence shows that her industry was con-
verted to the production of materials of war to a
greater degree than that of any other country in
the world, including Germany. When the United
States entered the war and began to ship supplies
from this country on a tremendous scale, England
took an increasing amount of consumer's goods
from us and shifted even more than she had be-
fore to making goods directly connected with the
war. Consequently, well over half of the produc-
tive energies of the Englisli people was devoted
to war purposes. Now comes the difficult task of
reconversion to peacetime production.
For more than a century, England has depended
on substantial imports of raw materials and food-
stuffs and has paid for them by exports, mainly
of manufactured goods. She is essentially a man-
ufacturing country. This is the basis of hev econ-
omJ^ During the war, she gave up her export
trade. She put her factories and skills to work in
producing munitions and military equipment.
She obtained the necessary imports by using her
available foreign resources, by building up large
obligations abroad, and through the lend-lease
procedure. These methods of war financing have
come to an end. Nevertheless, she needs imports
desperately. Normally, she would pay with the
proceeds of export, but she must go tlirough the
process of reconversion before she will be able to
produce many goods for foreign markets. Fur-
thermore, England has no net external credits in
other countries to draw on ; she is now a debtor
nation by many billions of dollars. Her need, to
put it briefly, is to be able to obtain essential im-
ports of food and raw materials until she is back
on an exjaorting basis again. Her position is like
that of a manufacturer who has been fully occu-
pied with war production, who has an excellent
labor force, a good basic plant despite some needed
improvements, and good market prospects as soon
as he can start producing peacetime goods, but
who has no way to get through the transition
]ieriod.
Because of this state of affairs, Britain must
maintain most rigorous controls over her im-
ports and exports. Similarly, she must guard her
foreign exchange with the greatest care. Her
trade must be directed so far as possible to coun-
tries which will deal in sterling and as little as
possible to countries where dollars will be required.
She may find it necessary to woi-k out deals with
various countries for the exchange of commodities
(Continued tin ncJt payc)
302
DEPARTMENT OF STATE BULLETIN
Results of the Anglo-American Civil Aviation Conference
JOINT STATEMENT BY THE U.K. AND U.S. DELEGATIONS
[ Ucleased to the pi-i'ss Fi'liniar.v 11 li.v (Iip V. S.-U. K. Delegations]
1. Three documents, two to be sij^ned and one
to be initialed in Berimida at -JoOi) hrs. GMT
(7:00 p. ni. Bermuda time, 6:00 p. m. Wash-
ington time) on Monday Feliruary 11, I'epresent
the work of the Anglo-American Civil Aviation
Conference which has been in session there since
January 15.
2. The documents agreed upon at the Bermuda
Conference represent a sincere and detei'mined
effort to reconcile the widely divergent A'iews
which were held by the two nations on the extent
to which international Air Transport should be
subject to Governmental controls. The two Gov-
ernments are happy to announce that agreement
has been reached on conditions which they believe
will be satisfactoi'y and advantageous to both
Nations.
3. The three documents are :-
(/) The Final Act of the Conference.
(//) A Bilateral Agreement between the Gov-
ernments of the United Kingdom and
the United States and an attat'hed
Annex.
(///) Heads of Agreement relating to the Civil
Use of Leased Air Bases.
THORP— Co)i/(/i)/rf/ from ptn/c 301.
on a barter basis, thus avoiding the difficult cur-
rency problem. And her operations must be
planned with an eye primarily to short-run and
immediate necessities.
It is to meet this situation that the Financial
Agreement between this country and Britain has
been negotiated. A loan of $3,75(),(HJ0,000 by the
American Government to the British Government
has been proposed and is now before Congress.
This loan will be a major factor in helping Eng-
land to get back on her feet economically. She
will be able to obtain her necessary imports, reor-
ganize her industries for export, and avoid a waste-
ful diversion of her resources into unproductive
lines for reasons of necessity. British goods will
shortly help relieve the shortages in England and
in the rest of the world.
4. All the chief aspects of Civil Aviation out-
standing between Britain and America are cov-
ered and resolved in these three documents. They
sliould provide a firm foundation on which future
iiiid closer aeronautical collaboration between the
two Nations can be built. Both nations had before
the Bermuda Conference accepted the multilateral
xVir Transit Agreement at the Chicago Air Con-
ference which provided for Freedoms I and II;
that is, the right of the air carrier or carriers of
one nation to fly througli the air sjjace of the other
(Freedom I) and to land for non-traffic purposes
(Freedom II).
5. The chief feature emerging from these Con-
ference Documents is that the broad policy agreed
between the two Governments offers an oppor-
tunitj' for the development of Air Transport
coupled with provision for later review and adjust-
ment of any practices which are shown by experi-
ence to be harmful to the best interests of the two
Nations.
6. In brief, tlie highlights resulting from the
Conference are :-
(/) Rates to be charged by air cairiei's operat-
ing between points in the LTnited Kingdom and
]5oints in the United States are to be subject to
governmental review.
(ii) The Civil Aeronautics Board has an-
nounced its forthcoming decision approving the
traffic and rate conference machinery of the Inter-
national Air Transport Association (lATA) for
a period of one year. (Section II of the Annex.)
(///) Freedom by each country to determine the
frequency of operations of its airlines.
{it') Freedom to carry Fifth Freedom traffic in
accordance with defined principles subject to ad-
justment in particular cases whei-e such adjust-
ment may be found necessary in the light of exj)e-
rience. (Section I of the Annex and Paragraph
(6) of the Final Act.)
(v) Agreement on an initial schedule of world-
wide air routes of mutual interest to the United
Kingdom and the United States (Section III of
the Annex).
FEBRUARY 24, 1946
303
()'/') Clearing: of tlit' position of tlu' Air Bases
leased by the United Kingdom to the United States
so that tliey may be oi)ened for civil use as soon
as possible whei-ever such use will contribute to
the overall development of Civil Aviation along
sound economic lines. In effect, this means that
when tlie Agreement is finalised, the Leased Bases
;it Bermuda, Antigua, St. Lucia and British
Guiana will be opened for full civil use while
other Bases will be available for civil aircraft as
)>ad weather alternates to existing civil airports.
Tlie United States lias conditioned its approval
of the Agreement upon the working out of a sat-
isfactory agreement covering similar problems as
regards Bases and airfields in Labrador and New-
foundland. (Heads of Agreement on Leased
Bases. )
(rii) Agreement that in general any dispute
between the two nations relating to the inter-
pretation or application of the Agreement which
cannot be settled through consultation shall l)e
referred for an advisory report to the Provisional
International Civil Aviation Organization
(PICAO) or its successor. (Article IX of the
Agreement.)
7. The Final Act of the Conference.
This document brings together in one place the
ditfeieut documents of the Conference and sets
out the jirinciples for the development of inter-
natiomil Civil Air Transport to which the two
(iovernments have agreed to subscrilje. The de-
liberate trend of these principles is to encourage
the use of Air Transport and to stimulate air
travel at economic rates. At the same time the
principles provide for fair and equal opportunity
for air carriers of the two Nations to operate be-
tween their respective territories and to provide
nir transjiort facilities matched to the needs of
the public. The fair and equal oppoi'tunity re-
ferred to above does not imply the allocation of
frequencies by agreement but only the right of
each nation to offer the services it believes justi-
fied under the principles agreed to.
Si)ecial consideration is also given to safe-
guarding the rightful interest of both countries
and to bridging the period during which difficul-
ties resulting from the AVar might militate to the
jirejudice of either country.
An important jirinciple is that outlined in par-
agraph 6 of the Final Act. This paragraph in
referrino; to the carriage bv air carriers of one of
the two nations of so-called "Fifth Freedom"
traffic — that is pa.ssengers and cargo between two
foreign countries — recognizes this Fifth Freedom
privilege, granted in the Annex, so long as the
carriage of these loads does not defeat the pri-
mary objective of the agreed international air
services which is to provide air transport ade-
quate for the traffic between the country of origin
of the aircraft and the country of destination of
the traffic.
To this end, the right to carry "fill-up" Fifth
Freedom traffic is to be subject to the general
principle tliat capacity should be related to:-
(/) the traffic requirements between the coun-
try of origin and the countries of destination;
(//) the requirements of through airline op-
eration, and
( /// ) the t raffic requirements of the area through
which the airline passes after taking account of
local and regional .services.
Thus, the privilege of carrying Fifth Freedom
traffic has been reciprocally granted subject to the
considerations indicated above.
Another important principle agreed on and set
out in the Final Act is that (in paragraph 11)
which provides for regular and frequent consul-
tation between British and American Government
authorities — in fact the CAB and the British
Ministry of Civil Aviation — to ensure that there
shall be close collaboration to implement and de-
velop the understandings arrived at in Bermuda
and to provide for the solution of new problems
of interest to both nations in the field of civil
aviation.
8. The Bilater.\l Agreement
This Agreement follows the line of the standard
form of such Agreements as drawn up at Chicago.
It contains 14 Articles which define the conditions
under which air services (i.e., regularly scheduled
airline services) shall be operated between the
territories of the United Kingdom and the United
States. (Details of the routes are set out in Sec-
tion III of the Annex.)
The Agreement sets out (Article 8) that modi-
fications to the Annex (other than the route
changes ijrovided for in Section IV of the Annex)
nniy be made after consultation and agreement
between the aeronautical authorities of the two
mitions. Further, there is provision (Article 9)
tiiat any dispute between the two Governments on
304
DEPARTMENT OF STATE BULLETIN
the Agreement or tlie Annex sliall be referred to
the PICAO or its successor for iin advisorj' report.
Tliere is no time limit on the Agreement but either
nation may at any time request consultation with
the other with a view to making amendments
which may be desirable in the light of experience.
Pending the outcome of such consultation, either
nation may give notice to the other of its desire to
terminate the agreement. In the absence of an
agreement as to the desired amendments the
Agreement can be terminated twelve months after
the orivine of notice. But termination of the
Agreement in this way will not affect the traihc
rights which U. S. air carriers may exercise at
any of the Leased Bases which are to be opened
for civil use.
9. The Annex.
This is a most important part of the Agreement
from an operative viewpoint. It is divided into
five Sections:-
I
- RIGHTS
II
- RATES
11 & IV
- ROUTES
V
- CHANGE OF GAUGE.
I-Rjghtfi. This Section sets out that airlines of
the United States and the United Kingdom shall
enjoy traffic rights between the territories of the
two countries on routes outlined in Section III
of the Annex in accordance with the principles
stated in the Final Act and in the Annex.
l\~Kates. The two countries liave agreed on
regulation to ensure economic operation and to
prevent rate wars resulting from unfair and un-
economic rates. The CAB has announced its
forthcoming decision approving the traffic and
rate conference machinery of the International Air
Transport Association (lATA) for a period of
one year from February 1!)4C). Under United
States law, rates agreed upon by U\TA in all
cases where United States air carriers are parties
are subject to CAB approval. Furthermore, the
Executive Department of the I'nited States ( in-
cluding the CAB) has agreed to seek from Con-
gress power to fix fair and economic rates for
United States air carriers on international air
services.
A most important principle has been agreed to
in respect to rate regulation. In all cases where
disagreement arises as to any rates between points
under the jurisdiction of the United Kingdom and
points under the jurisdiction of the United States,
consultation between the aeronautical authorities
of the two countries is provided to the end that if
possible agreement as to the proper rate can be
reached and such agreement made effective within
the respective constitutional powers and obliga-
tions of the Governments.
New rates proposed by any U. K. or U. S. airline
are required to be filed with both GTovernments
30 days before the effective date of such rates.
If agreed by both Governments the new rate can
go into effect at once.
If, before the CAB acquires its rate fixing pow-
ers, it disagrees with a rate proposed by a U. K.
carrier and approved by the U. K. Government
or the U. K. disagrees with a rate proposed by a
U. S. carrier, and if after consultation the two
Governments do not agree or if after agreement it
cannot for any reason be made effective, the party
objecting to the rate "may take such steps as it
may consider necessary to prevent the inaugura-
tion of continuation of the service in question at
the rate complained of.
After the CAB acquires rate fixing powers, if
after 30 days either the CAB or the U. K. Govern-
ment cannot agree on a rate proposed by an air
carrier or carriers of the other nation, the pro-
posed rate may nevertheless go into effect pro-
visionally at the discretion of the Government of
the air carrier concerned pending settlement of the
disagreement either by further consultation or by
an advisory report from the PICAO which each
Party agrees to use its best efforts to put into effect.
\l\-Route>!. Under this heading both the United
Kingdom and the United States have set out lists
of proposed air routes which touch their two ter-
ritories. Although some of these air routes are
already in operation, some may be opened shortly
and others may not come into operation for some
time, all are set down as an indication of how the
rights granted in Section I of the Annex may be
exercised.
l\-Route changes. This section lays down that
any changes on the routes of one nation in the
territory of the other will be made only after con-
sultation and agreement between the aeronautical
authorities. Other route changes in third coun-
tries may be made at any time, provided that
prompt notice is given by the one country to tlie
other of such changes. Any disagreement which
may arise and cannot be resolved by the aeronau-
tical authorities of the two countries shall be
referred to PICAO for an advisory report. In
FEBRUARY 24, 1946
305
I addition, each coiiiiti-y will ket'[) tht' otlier informed
of new route certificates and antliorities extended
to their own air carriers.
V-^ 'hangc of gauge. On any long, through, route
it may be that it will be more economical to handle
the onward carriage of trailic from key points in
smaller aircraft than that used on the prior part of
tlie trip. The Conference has recognized this pos-
sibility but has provided that in such case the
smaller aircraft will operate only in connection
with the larger aircraft arriving at the point of
change so as to provide a coimecting service, spe-
cifically scheduled as such, and the smaller aircraft
will thus normally wait on the arrival of the larger
aircraft at junction points.
Yl-Frequencies. The Conference has placed no
specific limitation on frequencies. Each nation
operating under the principles agreed to is to be
free to determine for itself the number of frequen-
cies which are justified; services being related to
traffic demands.
10. Leased Air Bases.
Heads of Agreement relating to the Civil Use
of Leased Air Bases have been drawn up and ini-
tialled with a view to the ultimate conclusion of
a formal Agreement.
When the United Kingdom undertook in 1940
to lease to the United States certain areas in New-
foundland, Bermuda and the Caribbean area for
naval and air bases, the subsequent Agreement ex-
pressly provided that, except in special circum-
stances or by agreement between the Governments
concerned, commercial aircraft should not be al-
lowed to operate from the airfields in the leased
areas. It also provided that no commercial activi-
ties should be conducted within the leased areas
other than with the consent of the Governments
concerned.
After the lease of these Bases, the United States
constructed a large airfield at each of them. With
the end of the AVar there are obvious advantages in
opening, for use by civil aircraft, airfields in the
leased areas in territories in which no other satis-
factory civil airfields are available. Such opening
would contribute both to the development of Air
Transport and to the territories concerned. But
where satisfactory airfields already exist there
would not be the same reason for arranging for
commercial aircraft to use the Base airfields.
Some discussions on this subject between the
Governments of the United States and the United
Kingdom were held in the autunni of 1945. Thus,
when arrangements for tlie Bernmda Conference
were made it was suggested that the opportunity
should be taken to deal with this question as well
as otlier more general questions relating to Civil
Aviation.
As a result of the Conference, when the Agree-
ment now envisaged is concluded, the airfields at
the Leased Bases in Bermuda, Antigua, St. Lucia
and British Guiana will be opened to regular use
by civil aircraft. Other simihir airfields in Trini-
dad and Jamaica will be available for u.se as bad
weather alternates in case of nece.ssity.
The opening of the Bases to civil aircraft use
is contingent upoii the making of satisfactory
agreements with the Governments of Newfound-
land and Canada regarding the use by civil aircraft
of airfields in Newfoundhuid and Labrador,
namely Gander, Harmon, Argentia and Goose
Bay.
There have been prolonged discussions on the
many difficult questions arising on the commer-
cial use of the airfields. These discussions have
left some remaining difficulties and complicated
legal problems which will form the subject of
furtlier discussions between the two Governments.
Agreement has, however, been reached in prin-
ciple as to the terms on which British, United
States and other aircraft should be allowed to use
the airfields. The positions of both the United
Kingdom and tlie United States in regard to the
exercise of traffic rights on the Bases have been
safeguarded and provision has been made to en-
sure that the United States, which will maintain
the airfields for military purposes, shall enjoy
"most favored nation" treatment. Thus it is
agreed that no other civil air carrier, including
civil air carriers of the United Kingdom, will be
granted any greater or different traffic rights at
the Bases than are granted to United States civil
air carriers at such Bases, with certain exceptions
permitted in the case of United Kingdom traffic
between two points under its jurisdiction. Thei'e
is also provision that the United States shall have
the right to carry between the Bases in its own
civil aircraft certain personnel travelling on busi-
ness connected with the leased Bases.
Other provisions of the Heads of Agreement
The Final Act of the Conference, the Heads of Agreement
rehiting to Civil Use of Leased Air Bases, and the Report
(111 the Bases Discussions will be printed in a later issue
of the Bulletin.
306
DEPARTMENT OF STATE BULLETIN
relate to the right of either Government to sus-
pend for military reasons commercial operations
at the Base airfields, and to the right of the United
States military authorities to ensure that no steps
are taken in connection with commercial air op-
erations which would prejudice in any way the
military use of the Bases. There is also a provi-
sion that if the United States wish at any time
to relinquish the responsibility for maintaining
the Base airfields the United Kingdom or the
Colonial Governments concerned would have the
right to take over that responsibility.
Air-Transport Agreement
United States and Turkey
[Released to the press Feliriiary ]."i]
The Department of State announced that a
bilateral air-transi)ort agreement between the
United States and Turkish governments was con-
cluded in Ankara on Februai'y 12. It was signed
for this Government hy tlie American Ambassa-
dor, Edwin C. Wilson, and for the Turkish Gov-
ernment l>y the Secretary-(ieneral of the Turkish
Foreign Office. Feridun C'cnud Erkin.
The route to be operated by American air serv-
ices under this agreement extends from the
United States tlirough Central P]urope to Turkey
and beyond to India, via intermediate points,
witli commercial stops for international traffic at
botli Istanbul and Ankara. Pan American Air-
ways is the airline which has been designated by
the Civil Aeronautics Board for this route.
Turkish air services are accorded reciprocal
rights on a route to the United States to be deter-
mined at a later date. The new agreement makes
provision for the carriage of so-called '"fifth
freedom'' traffic.
The Foreign Service
Resignation of Ambassador Harrinian
[Released to tlie press hy tlie Wliite Iluuse February H]
Letter from President Tniiiiini to W. Avcrell Harriiiiini,
ttceepting hix retiir/tiiilioii as L iiited titatcs AmVass'ulor to
the Soviet (lovenniient.
Fehninnj IJ,. ]9^()
Dkai! Avkrei.i. :
In April last ypiir ynii submitteil to me a letter of res-
ignation. I [jrevniled upon yon to continue in otHce. At
Potsdani you told nie of the understanding you liad with
Presidt-nt Koostnelt that with the end of the war you
shouhl be perniitted to resign. At my request, liowever,
you agreed to I'emain for a wliile longer.
The .Secretary of State advi.ses nie tliat in Moscow and
again in London you insisted to him that, having been
away from your bu.siness and your home for years, you
felt you sliould be permitted to return home. Oidy be-
cause of your Insistence would I agree to accept your
resignation, and I do so with great reluctance.
During the war you were called upon to perform many
missions of great importance and on every occasion you
dischai'ged .your dut.y in a manner that contributed to
(inr victory and rellected credit upon your Government.
In accepting your resignation I want you to liiiow that
I am satisfied all thoughtful .\mericans will share my
feeling of gratitude to you for the services .vou liave
lendered your country.
Very sincerely yours,
HaRKY .*>. TRUlfAN
Foreign Service Examinations
Scheduled
(Releaseil to tlie press Fehniary 1.".]
The Slate Department announced on February
13 that a special written Foreign Service examina-
tion for qualified members of the x\rmed Forces
and lionorably discliarged veterans will be held
Septeml)er ;iO-()ct()ber 1, 1940. This examination
is part of the program begun last year to expand
the Foreign Service by recruiting Foreign Service
Officers, Unclassified, from among the ranks of the
veterans and members of the Armed Forces.
By agreement with the War and Navy Depart-
ments, members of the Armed Forces will be eligi-
ble to apply for designation to take the exaiiiina-
tion regardle.'^s of their rank, length of service, or
where they are stationed. Arrangements will be
made to hold tlie written examination overseas
wherever necessary. Candidates who are success-
ful on the written examination will be required to
take a subsequent oral examination before appoint-
ments are made.
Presidential Approval
The text of the President's letter to the Secretary
of State, concerning the examination follows:
"I am pleased to see that the Department of State
is contimung its ]U'ogram of expanding the Foreign
Service and that another e.xaniination for admis-
sion to the Service will be lield in 1!)4(). As I said
in my letter of April 1!», 1945, to Mr. Stettiniu.s, it
is extremely important that the Foreign Service
be brought up to full strength as soon as possible
so that it will be able to perforin the vital role in
our forei}>n affairs which lias been assigned to it.
FEBRUARY 24, 1946
307
"It is my understanding that the forthconiinjf
examination is being held especially for qualified
veterans and members of the armed forces, j)ar-
ticularly those whose military duties prevented
their taking the last examination. This plan has
my full ap])i'oval. I can think of no group of
young Americans who possess to a greater extent
the loyalty, integrity, and ability demanded of our
Foreign Service Officers."
Eligibility Requirements
1. An applicant must be a member of the Armed
Forces or an honorably discharged veteran.
•2. An apjilicant- must have been born between
July "l. 191."), and July 1, 1925.
3. An applicant must be an American citizen
and have been such for at least 1.5 years.
4. If married, an applicant's wife (husband)
must lie an American citi'ien.
5. An ai)plicant unist have received a bachelor's
or other ecpiivalent degree from a college or uni-
versity accredited by recognized national or re-
gional accrediting agencies; or, if his course in
such a college or university was interrupted by
entrance on active duty in the Armed Forces, he
nmst have at time of sul)mitting his application,
completed ajiproximately three fourths of the
course required for a bachelor's or other equivalent
degree.
(). An applicant nmst be able to read with rea-
sonable facility one of the following languages:
French, German, Spanish.
Procedure for Applying
Veterans nuiy obtain applications for designa-
tion to take the written examination from Civil
Service Regional Offices, offices of the Veterans'
Administration, colleges and universities, the
Department of State.
5Ieml)ers of Armed Forces will be able to ob-
tain ap})lications through official channels. Army
personnel should see War Department Circular
Xo. -29 of :')() January lO-Ki. A Navy Department
BuPers letter, a Marine Corps Letter of Instruc-
tion, and a Coast Guard All-DCGO letter will be
forthcoming shortly.
The deadline for receipt of applications is June
17, 1!»4(). Applications received after that date
will not be considered.
''the defenses of peace"
[Ueleased to the press February 15]
If atomic warfare is not to destroy civilization,
mutual understanding among peoples must replace
ignorance and suspicion, according to the report
released on February 1.5 by the Department of
State on the United Nations Educational, Scien-
tific and Cuhural Organization (UNESCO).
In releasing the report Assistant Secretary of
State Benton declared that this new agency of the
United Nations is potentially an instrument of the
greatest importance for building "the defenses of
peace'' in the minds of men.
"International trust and confidence are no longei-
ideal goals to be realized in some Utopian future,
but present and urgent and inescapable necessi-
ties . . . international understanding must
henceforth be treated as a first objective of otu'
foreign policy", the report declares. UNESCO
will contribute to this end "by promoting collabo-
I'ation among the nations through education, sci-
ence, and culture", and "through all the media of
mass communication — notably the press, radio, and
motion pictures".
The report is issued in the form of a pamphlet
entitled "fAc defeihies of peace." The first part of
the pamphlet, released on February 15, contains
the report of Archibald MacLeish, chairman of the
American Delegation to the conference which met
in London, November l-KJ, 1945, to draft the con-
stitution of UNESCO. Included also are the
text of the constitution and other documents
approved by the conference. Part II of the
jjumphlet, which will be available shortly, contains
a sunnnary and analysis of the constitution pre-
pared by the delegation, and other related docu-
ments.
The pamphlet derives its title from the preamble
of UNESCO's constitution, which declares that
"since wars begin in the minds of men, it is in the
minds of men that the defenses of peace must be
constructed''.
The constitution of UNESCO is now under con-
sideration by the governments of the United Na-
tions. The organization will come formally into
existence when the constitution has been accepted
bv 20 nations.
308
DEPARTMENT OF STATE BULLETIN
Publications
of the DEPARTMENT OF STATE
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Printing Offlee, Washini/ton 25. D.C. Address requests
direct to the Superintendent of Doeuinenfs. except in the
cii^e of free publieutions. uhich niiiij he obtained from the
Department of State.
Blair House, Past and Present: An Ai-couni of Its Life
and Times in the City of Washington. By Kathiiiiiie
Eli/.iibetli Cniue, Uepartuieiit of State. I'ub. 23lil. 38 pp.,
36 illus. ,$1.
Prepared for presentation to distiiiRuished foreign
visitors who are ofticially entertained by tlie United
States Oovernnient at the lilair House. An eilition
lias been printed for public- .sale and distribution.
"the defenses of peaee" : Documents Relating to
UNESCO, the United Nations Educational, Scientific and
Cultural Organization. Tart I. Conference Series 80.
Pub. 2457. iii, 31 pp. KV.
Contains letter of transmittal; report to Secretary of
State from Chairman of U.S. Delegation ; I'inal Act
of Conference ; Constitution of the Organization ; In-
strument e.stablishing Preparatory Commission; reso-
lutions on media of mass communication, arrange-
ment with International Council of Scientific Unions,
and adult education ; and list of members of U. S.
Delegation.
Our Inter-American Policy. Inter-American Series 28.
Pub. 2456. 17 pp. 5«f.
Radio broadcast featuring Spruille Braden, Assistant
Secretary of State for American Republic Affairs,
and Ellis O. Briggs. Director, Office of American Re-
public Affairs, Department of State.
The British Loan — What It Means to Us. A radio broad-
east by Fred M. Vinson, Secretary of the Treasury, and
Dean Adieson, Acting Secretary of State, January 1946.
Commercial Policy Series si. Pub. 24.")4. If) pp. 1(V.
A discussion and explanation of the proposed loan
to the United Kingdom broadcast as the fifth in a
group of State Department programs and the forty-
eighth in the NBC Univereity of the Air series on
"Our Foreign Policy".
Moscow Meeting of Foreign Ministers, December 16-26,
1945: Report by James F. Byrnes, Secretary of State, and
Soviet-Anglo-American Communique. Conference Series
79. Pub. 2448. IS pp. 10»*.
Covenant of the League of Nations and Charter of the
LTnited Nations: Points of Difference. By Clyde Eagle-
ton, Legal Expert, Division of Interniitional Organization
Affairs, Department of State. Pub. 2442. 14 pp. 5<t.
Mutual Aid. Agreement and Exchanges of Notes Between
the United States of America and Turkey — Agreement
signed at Ankara I'>bruary 23, 1945; effective February
23. 1945. J-^lxecutive Agreement Series 465. Pub. 2446.
]2 pp. 5('.
Text of agreement and notes on the princiiJles apijly-
ing to aid for defense under the Lend-Lease Act.
Preparatory Commission of the LInited Nations. Interim
Airangenients Between the United States of America and
Other I'owers — Signed at San Francisco Jiuie 2(). 1945;
effective frcun June 26, 1945. l^xecutive Agreement Series
4111. I'lihlication 2392. 47 pp. KV.
Tlie document by which the I'reparatory Commission
wan established and given certain functions until
the coming into force of the United Nations Charter;
printed in all five official languages with facsimiles
of signatures.
Agricultural Experiment Station. Agreement Between
the United States of Amer'"- and Guatemala Amending
the Agreement of July 15, 1!. 4 — Signed at Guatemala Mar.
10, 1945; effective Mar. 10, 1945. Executive Agreement
Series 464. Pub. 2407. 5 pp. 50.
Establishment of a Supervisory Conuuission to pro-
vide joint supervision over the cooperative aspect of
the agricultural investigation and to furnish a ready
means for consultation between the two Governments.
Military Service. Agreement Between the United States
of America and Peru — Effected by exchange of notes signed
at Washington May 23 and Jmie 12, 1945. Executive Agree-
ment Series 477. Pub. 2443. 4 pp. 50.
Agreement permitting, on a reciprocal basis, nationals
of one country residing in the territory of the other
country, but who have not declared their intentions of
becoming citizens of the latter country, to elect to
serve in the armed forces of the country of which they
are nationals.
General Relations. Agreement Between the United
States of America and Panama — Effected by exchange of
notes signed at Washington May 18, 1!H2. Executive
Agreement Series 452. Pub. 2431. 10 pp. 5^.
Text of agreement regarding 12 points in the general
relations between the United States and Panama.
Recent Publications of the Department of State, 1946.
Pub. 2451. 4 pp. Free.
Annotated list of Department publications on current
developments in foreign relations.
.-1 cumulatirc list of the puhtieations of the Department
of St((te. from October 1, UUil to January I 19J,I> {publica-
tion ^(!'i) majf be had from tlie Department of State.
PUBLISHED WITH APPROVAL OF DIRECTOR OE BUREAU OF THE BUDGET
U S GOVERNMENT PRINTING OFFICE! 1946
THE DEPARTMENT OE STATE
VOL. XIV, NO. 348
MARCH 3, 1946
German Propaganda Directives page 311
The Credit to Britain and World Trade . . . page 317
By UNDER SECRETARY ACHESON
1651 Pennsylvania Avenue
Article on BLAIR HOUSE by KATHARINE ELIZABETH CRANE
page 322
For comiilete contents
see inside cover
^ENT o^
U, S. SUPERlMlb-iUtlxl W ujv-L^t.iuiiiy
THE DEPARTMENT OF STATE
BULLETIN
^.••"o*.
Vol.. XIV'No. 348*
'UBLICATTON 2478
March 3, 1946
For sale by (he Superintendent of DocumenU
U. S. Government Printing Office
Waehingion 25. D. C.
5t;BscRiPTiON:
52 issuer, $3.50; single copy, 10 cents
Special offer: 13 weeks for Sl.OO
(renewable only on yearly basis)
The Department of State BULLETIN,
a ueekly publication compiled and
edited in the Division of Research and
Publication, Office of Public Affairs,
provides the public and interested
agencies of the Government uith
information on developntents in the
field of foreign relations and on the
uork of the Department of State and
the Foreign Service. The BVLLETIIS
includes press releases on foreign
policy issued by the White House and
the Department, and statements and
addresses made by the President and
by the Secretary of State and other
officers of the Department, as uell as
special articles on various phases of
international affairs and the functions
of the Department. Information con-
cerning treaties and international
agreements to which the United States
is or may become a party and treaties
of general international interest is
included.
Publications of the Department, cu-
mulative lists of uhich are published
at the end of each quarter, as trell as
legislative material in the field of in ter-
national relations, are listed currently.
-^"^^'^ Contents
Excerpts From Basic Postulates and General Themes
for German Propaganda Abroad :
General Instructions for Propaganda Abroad ... 311
General Basic Postulates for Propaganda Abroad . 313
General Basic Postulates 314
Basic Postulates for North America 314
The Credit to Britain and World Trade.
By Under Secretary Acheson 317
1651 Pennsylvania Avenue.
Article by Katharine Elizabeth Crane 322
The Economic and Social Council of the United
Nations: U. S. Resolution on Trade and Em-
ployment 326
Conference of Economic Counselors and Advisers to
United States iSlissions in Europe 327
International Organizations and Conferences
Calendar of Meetings 330
Activities and Developments:
The West Indian Conference 330
The Far Eastern Commission 331
Boards of Governors 331
Record of the Week
Second Session of the West Indian Conference:
JMessage from President Truman 332
By Charles W. Taussig 333
Develoijnient of the St. Lawrence Seaway and Power Project.
Statement by Under Secretary Acheson 334
Appointments to Preparatory Commission of UNESCO:
PIsther C. Brunauer as U. S. Representative 337
Howard E. Wilson as U. S. Member on International Secre-
tariat 338
U. S. Government Orders Documents Returned to Czecho-
slovakia 338
Deposit and Registration of Czechoslovak Securities .... 339
Visit of Finnish Journalists 339
Discussions of Relations With Austria 339
*Polish-Soviet Treaties of Friendship and Alliance 340
Direct Telegraphic Service With Embassy in Paris 345
Education Advisory Group to Japan 345
Occupation Orders for Japanese Fishing and Aquatic In-
dustries 346
Fifth UNRRA Quarterly Report: President's Letter of Trans-
mittal 347
* Whaling Agreement and Protocols:
Netherlands 347
Denmark 347
Agricultural Mission to Visit Near East 348
Privileges and Exemptions for International Organizations . . 348
Visit of Argentine Architect 349
(Continued on page 35 S)
• Treaty iDformation.
Excerpts From Basic Postulates and General
Themes for German Propaganda Abroad
No. 27: GENERAL INSTRUCTIONS FOR PROPAGANDA ABROAD
(laid down in PLS of 3-2-43)
The cliief aims of German propaganda abroad
are :
1. Impairment of Anglo-American and Soviet
powers of resistance, paralysis of the military spirit
{Krieg-swillen) of these countries, and the encour-
agement of the longing for peace in our enemies.
2. Splitting and imjjairment of the alliance
among Britain, the United States and the Soviet
Union.
3. Convincing the world of the sure victory of
the Tripartite Powers and the inevitable defeat
of our enemies.
4. Maintenance and intensification (Vertie-
fiing) of the fear of the Bolshevik danger on the
part of Europe and the rest of the world. The
triumph of our enemies would mean the Bolshevi-
zation of Europe and the world.
The following are available for propaganda :
I. To the United States of America :
The continuation of the war is senseless, because
1. The United States has never been threatened
by anyone, and does not need to defend itself
against anyone, since it is unassailable in its own
continent.
2. There is nothing for the United States to
gain in Europe against (Termany. The United
States has in its own country everything that the
American people needs.
3. America cannot win this War even with the
efforts of-its allies, since the Tripartite Powers
have gained completely unassailable positions in
Europe and East Asia. The continuation of the
war means tremendous sacrifices in blood, money
and way of life for the American people. The
American people will sacrifice their best husbands,
fathers and sons, and all their wealth, to no pur-
pose at all. It must stint itself on every hand,
without the slightest necessity therefor, without
being able to gain any return from these sacrifices,
and without any hope of success.
4. It is making those sacrifices not in its own,
but in the interests of Britain. It is being used by
England for the maintenance of her world power
and, as after the World War, will be cheated of
all the fruits of its exertions. The American tax-
payer is having to pay not only for American war
expenses, but also for the unlimited burdens which
are entailed by the provision of war materials,
foodstuffs and industrial output to England, the
Soviet Union and other allies. Nothing will be
seen of this money after the War.
5. Roosevelt's mad dream of seizing and leading
the world, which was instilled in him by the Jews,
the true enemies of the American people, will
never be realized.
6. Roosevelt has broken his solemn promise to
keep America out of the War. He has betrayed
the heritage of Washington and the Monroe Doc-
trine, and Christianty through his alliance with
This \» the first instalment of excerpts taken from a
book of propaganda directives, StunOardthesen loid RUht-
linien, issued by the "Chief of Propaganda on tlie Staff of
the Minister for Foreign Affairs" of the German Govern-
ment. In a foreword designated "Confidential !" and dated
Field Headquarters, 12 May 1943, this oflBcial, Dr. Megerle,
states that the volume sets forth "the basic postulates
and lines of propaganda abroad which have been laid down
by the Minister for Foreign .\ffairs".
The book contains 35 numbered "basic postulates" for
German propaganda directed to or concerning most major
areas and countries of the world. The order of the
arrangement is somewhat arbitrary, postulates 1-10, 13,
15-17, and 27 being of general application. Others deal
largely with individual countries, areas, or subjects.
The excerpts that are printed in this issue of the BtjixE-
TiN consist of ixistulate 27, the most comprehensive in
scope ; 1-10 ; 13 ; and 2S, which has two parts — first, direc-
tives for the United States itself, and, second, directives for
propaganda regarding the United States for material di-
rected to all other areas.
The second instalment, to be printed in an early issue
of the Bulletin, will consist entirely of postulate 20, con-
cerning propaganda to the United Kingdom.
311
312
DEPARTMENT OF STATE BULLETIN
Bolshevism. He is liquidating American democ-
racy and is striving like a dictator for a fourth
term in the Presidency, in order to keep his nation
in the "War.
II. To Britain:
1. Britain has already lost the War. She can-
not prevent the triumph of the Tripartite Powers.
Some day Eussian strength will be paralyzed.
America can never be decisive on account of the
lack of shipping in the face of the ever increasing
sinkings of her ships by the U-boats of the Tripar-
tite Powers, and the intensified shortage of ship-
ping space, and the ever more unassailable
positions of the Tripartite Powers in Europe and
East Asia. Britain's struggle is thus futile.
2. Britain has allied herself with two powers
who are the mortal enemies of the British Empii'e.
Even in case of a victory of our opponents, the
real victors would be the Soviet Union in Europe,
and the United States in the rest of the world.
That would mean the rule of Bolshevism from the
White Sea to Calais and the Mediterranean, and
predominance in the rest of the world by the
United States, which with 135 million people
against the 46 million in Britain would take the
leading position and relegate Britain to a depend-
ent position. America can only realize her claim
to world leadership at the expense of the British
Empire. That would be the end of Britain as a
world power.
.3. Roosevelt brought on the War in order to liq-
uidate the British Empire. The course of the War
to date has shown that American claims at present
can only be satisfied at the expense of Britain.
Britain has already been almost entirely thrust
out of the Western Hemisphere. America has
already forced her way so far into Africa, the Near
East, India, Australia, New Zealand, and Nation-
alist China that she partly overshadows the Brit-
ish position. The United States has decided to
make herself the leading power on the sea, in
finance, and in trade at the expense of Britain, and
to win a monopoly of air connnerce. By the con-
tinuation of the war America is proceeding ac-
cording to plan with the impoverishment of Brit-
ain, and is bringing her into complete dependence
on the United States.
4. Parallel with this there is a growing Bolshe-
vik infiltration among the British laborers. The
longer the war lasts, the more certain it is that
British democracy will be liquidated.
III. To Europe:
1. Today Europe has a choice only between Bol-
shevist chaos and the new European Order which
is beneficial for all nations. Since the War must
be fought out to the bitter end, a third alternative
is impossible. A victory of the Anglo-Americans
and the Bolsheviks would not be followed by peace,
security and prosperity, but only by a further
bloody war.
2. Our enemies are anything but united. Al-
ready the simple discussions of future peace plans
indicate the unbridgeable conflicts between the
imperialistic Powers, Britain, America, and the
Soviet Union. They are so disunited in their war
aims that a common reconstruction would be en-
tirely imj^ossible. Their imperialistic interests
and their pretensions to world domination would
set them against each other, and a permanent war,
with Europe as the principal battlefield, would be
the result.
3. A victory for our enemies would mean a
Bolshevik victory for Europe, that is, a Bolshe-
vization of the Occident, the metamorphosis of the
European States into members of a European
Soviet Union, and the mobilization of European
resources {Kriifte) for Moscow. The Red Army
would throw the Anglo-American forces out of
Europe, if Britain and America did not quickly
withdraw out of fear of Bolslievik infiltration (in-
fections?) as (happened) in 1919.
4. The best Army in the world, that of Germany
and her allies, stands as the sole bulwark of Europe
against the Bolshevist flood. No other combina-
tion on earth could save Europe from the greatest
catastrophe in her history. ,
.5. On the other hand, a victory for the Tripar-
tite Powers and their allies, which are not divided
by any dissensions, signifies (the following) for
Europe :
{a) Rescue from Bolshevism;
{h) An immediate and lasting peace. No non-
European Power could plunge Europe into a war
by maneuvers of one European Power against an-
other. The fundamental British policy of main-
taining a political Balance of Power in Europe
has been outmoded by technical and other develop-
ments :
(c) An unexampled flourishing of culture and
prosperity. The same is true for East Asia.
{(1) A new and better Order in Europe under
MARCH 3, 1946
313
the responsibility of the Axis Powers, which will
guarantee a just and honorable place to the other
States of Europe, because they are inextricably
tied up with the fate of Europe for better or woi'se.
The conduct of the Axis toward the little States
of Europe shows that cooperation is compatible
with the sovereignty, freedom, and internal self-
determination of these States.
IV. To East Asia:
Japan's leadership in East Asia means: the res-
cue of the East Asiatic peoples from Bolshevism,
the establishment of orderly relations and the cre-
ation of enormous markets as a consequence, which
will also spread in the end to industrial nations.
V. To Russia :
Britain and the United States intend only that
Soviet Russia and Germany shall weaken each
other as long as possible so that eventually the two
capitalist empires can undertake without danger
the liquidation of the Soviet Union by an attack.
The Red Army is needed so far only as cannon
fodder for British and American plutocracy.
GENERAL BASIC POSTULATES FOR PROPAGANDA ABROAD
( laid down under date of 20-12-41)
No. 1
Churchill seized the fii'st opportunity to begin
this war out of pure British unbridled greed for
power. But behind Churchill stood Roosevelt as
the exponent of World-Jewry. No one doubts any
more that this World War was induced only
through Roosevelt's aggressive behavior toward
Germany, Italy and Japan, which have always
dechired their desire for peace and friendship with
the American people. Thus, Roosevelt is the ulti-
mate instigator and the principal war criminal of
this World War.
No. 2
Because of the historic victories of the German
Army over the Bolshevist Army, the national
jjower of Bolshevism has sustained decisive injur-
ies [lit. trans, blows], which no power on earth
can undo. (Revision of 23-1-42)
No. 3
With the Japanese victories over the American
and British armed forces in East Asia, Japan has
won domination of the sea and air in East Asia.
Therebj-, Japan is in a position to carry out in an
orderly manner and without serious interfei-ence
her operations on land for the control of the entire
East Asiatic area.
No. 4
Europe has been made proof to blockades for all
time through the possession of the greatest part of
European Russia and the Ukraine, and through the
utilization {Xiitzharmackimg) of the wealth of
grain and raw materials for the European
economy.
No. 5
Through the achievement of control by Japan
of the East Asiatic region, Japan came into pos-
session of tiie richest sources of raw materials in
the world. It follows from this situation that
Britain and America will be forced to break off
completely their arrangements for procuring in-
dispensable raw materials from this region.
No. 6
Germany and Italy, with their allies and friends,
are protecting Europe by the expenditure of their
blood from the annihilation and eternal slavery of
Jewish Bolshevism. They are thereby saving
Euro])ean culture and have a claim to the gratitude
of all European nations.
No. 7
The common struggle of the European bloc un-
der the direction of the Axis, and of the East Asi-
atic bloc under the direction of Japan, forces the
enemy joowers to disperse their forces over all the
oceans.
No. 8
Militarily unassailable and economically in-
sured, Europe can already begin her peaceful New
Order according to plan.
No. 9
Through the victories of the Axis in Europe and
the victories of Japan over the Anglo-American
forces in the Pacific, the ascendancy of Germany,
Italy and Japan, and their allied States in the po-
litical, military and economic spheres has become
so great that no combination of powers on earth
314
DEPARTMENT OF STATE BULLETIN
can stand up against them in the long run. How-
ever long the war may last, the final victory of the
Axis is thus already assured.
No. 10
The Tripartite Pact Powers and their allies will
carry through this war with all the fanatic faith
and will to victory of the young nations until the
final downfall of their opjDonents. But the prin-
cipal war aim [Jit. frtnts. peace aim] of the Axis
Powers is : The overthrow of the international an-
archy preached by Jews, Bolshevists and pluto-
crats by the construction from the ground up of
closed economic regions {Lehensmume) : Europe
for the Europeans, East Asia for the Asiatics.
No. 13: GENERAL BASIC POSTULATES
(liiid clown luuler date of 4-l-i2)
The annihilation of two thirds of the American
Fleet b}' Japan, and the heavy losses in ships
caused the British by the Axis Powers, have al-
tered the world situation fundamentally. Japan
and her Allies are now fully a match for the com-
bined Anglo-American Fleets.
No. 23: BASIC POSTULATES FOR NORTH AMERICA
{laid down nnder date of 19-3-J2)
A. Ten basic postulates for propaganda directed to
the United States of America — for general use.
1. Roosevelt is tlie principal war criminal. He
went looking for war everywhere. Germany and
Italy had only the friendliest feelings for America,
and Japan was trying to reach a settlement with
America. A calm, reasonable foreign policy, such
as the American people desired, would have pro-
tected American interests completely, and kept the
Western Hemisj)here out of the War. Roosevelt's
contention that the Tripartite Powers would have
threatened America is entirely without founda-
tion. They had not the slightest interest in that.
On the other hand, Roosevelt calculatingly pre-
vented every peaceful solution by his meddling in
all parts of the world and by his fanatical oppo-
sition to a policy of understanding in Europe and
East Asia. He oiaenly praised himself for this.
No appeasement ! Three long years of provocative
acts {Angriffxakte) against Germany and Italy.
Continual challenges to Japan without the slight-
est concession.
2. Roosevelt took refuge in the War. What im-
pelled Roosevelt to this war policy? Answer:
Personal ambition, lust for power, and the aware-
ness of his inability to solve the internal economic
and social problems of America. The dissatisfac-
tion in America called forth by this inability
forced Roosevelt to some solution (Ausiveg) , if
he and Mrs. Roosevelt were to remain in power.
But this solution meant war. Only thereby could
he dissociate the American people from his do-
mestic blunders. By the greatest breach of faith
in American history he gained his third term [Kt.
trcDis. turn] and was able to make warx. Now Presi-
dent Roosevelt wants a long war in order to re-
main in power. If American citizens must no\v
exchange employment and freedom for military
drill, if mothers nuist give uj) their sons, and wives
tlieir husbands, if the standard of living of the
whole American nation is circumscribed, all this
serves the purpose only of the grasping for power
of tlie President and his henchmen.
3. Roosevelfs pretension of fighting for the
maintenance of democracy and liberty is a lie. In
ihe election campaign Roosevelt promised the
American people to keep the U. S. A. out of war.
He calculatingly deceived the American people
and broke his word. Step by step he pi-esented
the Senate with accomplished facts which de-
stroyed the pledged neutrality and plunged the
American nation into the AVar. He tlien allied
liiniself with the British Empire, for centuries the
oppressor of nationalities (Ireland, India, Pales-
tine, Jamaica, Egypt, Iraq, etc.), as well as Soviet
Russia, the bloodiest dictatorship and foe of
democracy (Soviet Russian attack on Finland).
Contrary to the principles of the Monroe Doctrine,
which was respected by the Tripartite Pact
Powers, Roosevelt meddled in the affairs of all
MARCH 3, 1946
315
nations and continents. He betrayed the tradi-
tion of Washington and Monroe. He wishes to be
the policeman for the whole world.
4. Democracy is only a screen and a slogan for
Roosevelt. His methods of governing (fight
against the Supreme Court and purposeful side-
tracking and ignoring of Congress) show that he
is aiming at dictatorship and has already practi-
cally set aside the ancient American Constitution.
Eoosevelt is liquidating American democracy.
Today not much remains of the American way of
life. Everywhere inroads by the State into the
life of the individual are noticeable, free com-
merce and a free economy are being liquidated,
and high taxes, frightful national debts, and in-
flation are the result. Roosevelt is opening the
gates of America to Bolshevism, the destroyer of
intelligence, freedom of expression, and private
i:)roperty.
5. Roosevelt's contention that he protects small
nations is a lie. Roosevelt overpowered Latin
America, occupied Greenland, Iceland, Dutch
Guiana, and North Ireland, induced the occupa-
tion of Iran by the British and the Soviets, and
allied himself with the British and Soviets, the
desti-oyers of numerous small nations.
6. Roosevelt's war is not furthering the inter-
ests of the American people, but the resurrection
of Jewish power in the world.
Roosevelt is the exponent of World-Jewry, and
is surrounded by Jewish advisers.
Roosevelt calls the Jew Baruch. who took Wil-
son into the World War, his friend and master.
World-Jewry hopes to be able by the complete
domination of the American people to win back
its ]iower throughout the world, starting from
America. In this task [lit trans, with this pur-
pose] the American people, which the Jew op-
presses, will be worn out, for :
The War will lead to frightful outlays of mate-
rials, enormous burdens of debt, and inflations in
America. Every rifle and cannon, every airplane,
which leaves the United States, must be paid for
by the American taxpayer. Not one dollar of it
will be repaid. The result of the war for the
American people will be the greatest economic and
social crisis. However, the American Jew is not
fighting in, but profiting by, the War.
7. Roosevelt's utterances about God, Christian-
ity and Humanity are hypocrisy :
His alliance with the Bolsheviks, the greatest
atheistic organization in the world, shows that.
Roosevelt's concern about the Vatican is only a
political maneuver to hitch the Catholic popula-
tion to his wagon.
8. Through the fault of Roosevelt, Stimson,
Knox and Company, the American Army has al-
ready been beaten at the very beginning of the
War. Roosevelt carried out his war policy, even
though he knew that he was not equal militarily
and materially to such an eventuality. The great-
est part of the American Navy was destroyed in
the Pacific, the naval bases were partly lost
(Guam, Wake, and the Philippines), and partly
heavily damaged (Hawaii). Air superiority had
to be surrendered to the Japanese. The U-boats
of the Axis are adding heavy losses in American
shipping in the Atlantic. The American Army
has no tradition, no experience in warfare, no mod-
ern instruction. It has not grown up {Sie steckt
noch in den Kinderschuhen). Roosevelt, like
Churchill, is a military dilettante. His military
dilettantism and that of his Jews, and the strategy
of colossal errors, are responsible for the American
defeats. The defeat at Pearl Harbor is Roosevelt's
defeat.
9. Roosevelt's astronomical rearmament figures
are sheer bluff. The Americans can see for them-
selves that the success of the Rooseveltian rearma-
ment program is impossible. Roosevelt will never
be able to perform the promised assistance to Eng-
land, the Soviet Union, China, Australia, de
Gaulle, and South America, and simultaneously
achieve rearmament at home, particularly because
of raw materials shortages and the backwardness
of the American armaments industry.
The Japanese successes in East Asia alone take
from America the bulk of the rubber, tungsten and
tin supplies, which are indispensable to her rearm-
ament. After several years the Brazilian rubber
industry is just now going into production. The
American rearmament industry is not so capable
as Roosevelt contends. It lacks machines and ex-
perienced workers, and it suffers in addition from
deficiencies in organization.
The comparison of the munitions production
capacity and the military possibilities of America
and Britain with those of the Tripartite Pact
Powers and their allies, and the countries con-
trolled by them speaks for itself, taking into ac-
count the industrial structure, munitions produc-
tion capacity, tradition in armaments, and the
number of highly qualified skilled workers :
316
On the one side:
America 135 million people
England and Canada 55 million people
About 190 million people
The potential of Russian aims production has
been weakened by the loss to Germany of the most
valuable sections of the munitions industry.
Aside from shipyards. England and America
have only a few significant munitions factories
with any tradition, insufficient numbers of muni-
tions workers, little experience in the production
and testing of arms and munitions, too few arma-
ment technicians, an inadequate officers' and non-
commissioned officers' corps, no experience in
modern warfare, and no military tradition. Above
all, they lack a clear, unified war aim.
On. the other side the Tripartite Pact Powers;
Germany and Italy in Europe, as well as the
countries controlled by them, which all work for
the armament and supply of Germany, Italy, and
their allies :
About 4t>0 million people
And Japan 100 million people
Total oOO million people
Thus the Trii^artite Pact Powers have at their
disposal the greatest munitions factories in the
world with centuries-old tradition. Hundreds of
thousands of competent technicians, munitions
workers, a mighty officers' and noncommissioned
officers' corps witii a long tradition of soldiery and
vast exiwrience in the conduct of modern war.
(Tcrmany mobilized powerful reserves at home
and abroad in the measures she took to conduct
total war. And to this should be added the uni-
fied fighting spirit of the European nations fight-
ing for their future.
The situation is similar with the Japanese. It
follows that the Tripartite Pact Powers will in
any event exceed the arms production of their op-
jionents.
So far as raw materials are concerned, the Tri-
jnirtite Pact Powers have at their disposal at least
as great raw materials potentials as the British
and Americans with their Russian allies, after the
Anglo-American losses in raw materials sources in
the Pacific, and the Soviet losses in Eastern
Eurojje.
Roosevelt says that his rearmaments program
will only come into full swing in the next few.
DEPARTMENT OF STATE BULLETIN
years. On the other side one can definitely state
(festzustdlen ) that the great armaments produc-
tion program of the Tripartite Pact Powers will
take on gigantic proportions in 1943.
However much Roosevelt and his British allies
can produce in armaments for land, sea and air,
the Tripartite Pact Powers and their allies with
their 500 million people and the most highly de-
veloi^ed numitions industry in the world will ex-
ceed the British and American arms production
at any given time.
10. The present War is entirely different from
the World War.
{a) The U. S. A. will lose this two-front war.
The allies of the U. S. A., Russia and Britain, are
already so greatly enfeebled by the victories of the
Tripartite Pact Powers that their full j>articipa-
tion in the AVar can no longer be depended upon.
The Russian winter offensives have been shattered
with frightful los.ses to the Russians. The Ger-
man Army stands ready to unleash new blows
against the Soviet Union. England is hard
pressed by the victories of the Tripartite Pact
Powers in Europe and East Asia on the sea, on
land, and in the air. The ever heavier inroads of
the U-boats are decimating the Anglo-American
tonnage catastrophically. No building jDrogram
instigated by Roosevelt can replace the tonnage
sunk. The Anglo-Americans cannot transport
even their normal essential supplies.
The common effort of the European bloc under
the leadership of the Axis, and the East Asiatic
bloc under the leadership of Japan, compels
America to disperse her forces over enormous
distances.
This dispersion takes away from America and
Britain any hope of being able to overcome Ger-
many, Italy, and Japan, and their allies. The
tremendous tonnages necessary to the transporta-
tion of troops and war materials to all battlef routs
will never be available. For this reason alone, it
will be impossible for America to participate in a
decisive manner in this war, no matter how much
war material she produces, however many troops
she trains. Also, there is no possibility of a land-
ing in Europe as in 1917. Therefore, America
will lose her war of two fronts. The attempt to
prevent the victory of the Tripartite Pact Powers
is in vain, no matter to what efforts Roosevelt and
his Jews force the American people. All Ameri-
can efforts are hopeless.
(Conlinucd on page S^Ji)
MARCH 3, 1946
317
The Credit to Britain and World Trade
By UNDER SECRETARY ACHESON
IT IS DISCOURAGING to soiiie that our problems did
not end with tlie end of the war. Our people
strained themselves to the breaking point to win
the war ; they devoted themselves untiringly to the
difficulties which arose and they solved them ; and
now they would like to enjoy the peace. But, of
course, we have always known that keeping the
world peaceful was difficult too. That also re-
quires our patience and our best efforts.
Surely there is no i^roblem which affects us more
intimately than a prosperous world and a pros-
perous United States. It is about that question
that I would like to speak to you tonight.
From late summer until last winter representa-
tives of the American and British Governments
worked togetlier to arrive at a solution of the finan-
cial and trade problems which both of us face.
AVhen the discussions were completed we had
reached agreement as to the means we would em-
ploy to secure the chance of a prosperous world.
Those means cover a broad range. Thej^ include
the settlement of the lend-lease and reciprocal-aid
account between the two countries, an agreement
on the proposals for an international trade organi-
zation and the granting of a credit to Britain.
I should like to tell you why I think it makes
sense for us to extend a credit to the British, and
second, I should like to tell you why I think the
terms of that credit are in our own interest.
A little less than a year ago we presented to
the Congress the Bretton AVoods agreements for
an International Monetary Fund and an Interna-
tional Bank for Reconstruction and Development.
We presented those agreements against the back-
ground of what we believed were going to be the
post-war economic conditions of the world. We
stressed to the Congress that, when the period of
war was over and the period of lend-lease was
over, we would abruptly face the problem of sup-
jilying the needed imports which foreign countries
must have to live. We explained that these coun-
tries would find it very difficult to get dollars
because they woidd have few goods to sell and
that, without the Bretton Woods institutions, we
would run into a whole series of restrictions over
world trade, a series of restrictions which would
be designed for the purpose of helping each coun-
try force its jiroducts on the rest of the world so
that it might earn enough money to buy abroad
the barest minimum of goods it required for its
people.
We said that these efforts could only lead to a
system of closed blocs; each country would Avant
to fence off for itself a market where it could sell
its goods. In fact, it would have to make such
an attempt because only by doing so could it earn
enough money to purchase from other parts of the
world what it needed to live upon. The Congress
believed what we said. It believed that that would
l)e the central economic jiroblem of the post-war
world, and it passed the Bretton Woods Agree-
ments Act.
The better part of a year has gone by. Every-
thing that was then presented to the Congress
has proved to be far too true. I don't think it un-
fair to say that in that period of time the whole
condition of the world has deteriorated far more
than we could have thought. It seems to me that
it has passed the point of being critical. It has
reached a point where only the most timely and
vigorous action on our part can prevent a further
decay into the conditions of economic anarchy.
Why has that happened? It has happened
partly because events have moved far faster than
we have been able to provide measures to deal with
them, partly because the military occupation has
come sooner and lasted longer in some areas than
we thought it would, and partly because condi-
tions in the world are generally worse than we
thought they would V)e. It has happened for a
hundred other reasons.
An address delivered at a meeting sponsored by the
League of Women Voters on Fel). 19 at St. Louis, Mo.,
and released to the press on the same date.
684621^46-
318
DEPARTMENT OF STATE BULLETIN
Why have I discussed this situation? What is
its relevancy to Bretton Woods and the credit to
Britain?
Let us think for a moment about the position
of the United Kingdom in relation to world trade,
world production, world exchange of goods, and
world eonunerce. Let us think of the position of
the United Kingdom, not merely because of the
tremendous importance of what it buys and sells,
but also because of the tremendous importance of
its currency, which together with the dollar pro-
vided the trading mechanism for one half of the
total pre-war world trade.
Britain and the United States provide the cur-
rency which, after this war and the elimination of
Germany and Japan from prominence in inter-
national commerce, will be the currency with which
two thirds or three quarters of the trade of the
world is conducted.
Let us look a little more closely at the position
of England. Before the war, one fifth of the en-
tire trade of the world moved in and out of the
ports of Great Britain. That little island was like
a lung. It was the breathing in and out, the draw-
ing in of imports and the sending out of exports,
which was one of the great activating forces of
■world trade. Great Britain and the British Em-
pire, the United States and Canada between them
conducted one half of all that trade. British
trade, Canadian trade, American trade affected
every single corner of the earth, affected France
and all of Europe, affected Indonesia, China,
Japan. Every part of the world was activated by
British and American trade.
Now, what is the position of Great Britain
today? During the war many things happened to
that island. One of the things was that through
force of necessity, through the virility of its own
administration and its own character, that island
converted almost its entire economy to the produc-
tion of war commodities. It is eas}' to say that
the British had to do that because they were in the
middle of the fight, and they could not have sur-
vived without doing so. But many otlier people
were in the middle of the fight and did not survive
because they did not do so. Tlie British took no
half measures. They never spared themselves.
All of their industries were transformed into the
production of war goods; their manhood was scat-
tered over the seven seas and all the continents in
the armed services; old men, women, and children
were brought into the factories. Life throughout
Britain was completely disrupted to produce ma-
terials for the war and to carry on the war. I am
not saying this because this loan is a reward for
virtue ; I am saying it to indicate the condition of
that island at the end of the war. British exports
were down to 30 jjercent of what they had been be-
foi-e the war. But that is still only part of the
picture.
Another thing which had happened to Great
Britain was that, although the United States had
provided about 25 billion dollars of aid through
lend-lease, the British had provided us with 5 bil-
lion of reverse lend-lease aid ; and they had to con-
duct the war from the Straits of Gibraltar to India
and Burma through the use of the British pound
sterling. At the end of this year the British will
have accumulated 14 billion dollars in sterling
debts to other countries. I don't mention that
merely because it is a tough thing for Britain to
accumulate debt; we have accumulated debt our-
selves. We borrowed billions from our own peo-
ple. But the important fact about the British is
that they accumulated debt to other people. What
does that mean in terms of world trade?
It means, first, that for decades and decades the
British will have to export goods for which they
get no pa.y. Those goods will have to be exported
to pay off the sterling debt. That is inevitable.
That must happen. That is the burden the war
brought upon Britain. It is our hope and the hope
of the British that some of their creditors will
agree to scale down a part of that debt, as part of
their war contribution. But there will certainly
remain a very substantial amount which Britain
will have to work off through exports. And that
means that, unless drastic steps are taken to secure
an interchangeability of currency, the British must
work for their individual creditors: and their in-
dividual creditoi-s, if they are to realize upon their
debt, must accept British goods and services only.
That problem, if not dealt with in some way, would
bring about a channeling of economic activity
which could only result in the division of the world
into closed economic blocs.
I hope it is clear what I mean. In order to buy
meat during the war, the British bought it from
Argentina. That is where they had to buy it, be-
cause that was the only place they could get it.
The way they paid for the meat was to say to the
Argentine, "We will give you sterling credits in
MARCH 3, 1946
319
London. Yon can draw on a bank in London for
sterling and that is good wherever and whenever
you can use sterling". This transaction, which
was repeated again and again in various parts of
the world, was one of the most extraordinary
financing jobs of the war. People went on taking
sterling credits in London because they had faith
in the integrity of the British character and the
British Government. They could not use this
British money for the time being. There was little
they could buy with it. They could not exchange
it for dollars, francs, or rubles. All they had was
the faith that some day they would be able to buy
something with it.
If yon look at nothing more than the claims on
future British goods which arise from Britain's
sterling indebtedness to other countries, you can
see that for generations people in India who have
sterling credits, people in Egypt who have the
same thing, and people in Near Eastern countries
and South America would have to look only to
Britain for goods and services to extinguish that
debt, unless the pound sterling can be made ex-
changeable for the currencies of other countries.
That is the situation Britain faces at the end of
the war.
What does it mean in terms of world trade?
It means that all of the disasters which I began
by talking about are more accentuated than they
otherwise would be. As the situation stands today,
it means that, if Greece wants to deal with Great
Britain, it can only deal in terms of sterling. If
Great Britain buys something from Greece, all
Greece gets is a claim on future British produc-
tion. It means that Italy, which is in a desperate
situation, if it deals with Great Britain, gets only
a claim on some possible future production. They
get no money they can spend in New York, or
Paris, or Rio; they get merely a claim against fu-
ture British exports.
That is the situation which confronted the Brit-
ish and American negotiators when they came to
discuss a credit to Britain. The agreement which
they reached was not couched in terms of the
United States simply lending some money to the
British.
We had a chance — one last, clear chance — to re-
store world trade, to put it on a basis which would
permit someone who sold goods to England to get
some money which he could then take and use in
Brazil, or the United States, or France. We could
then again have a condition of multilateral trade
in wliich every sale gave you a chance to buy in
any market you wanted to in the world, a situation
which would increase production everywhere be-
cause everybody would have a chance to compete
freely in everj' market.
Or we had a chance of taking a narrow view-
point. We could have said, "Well, we have done
enough for the British. We sent them 25 billion
dollars' worth of lend-lease during the war. We
did all that and now we have our own problems."
The result of that attitude would have been that
the British would have been forced to adopt the
only alternative open to them — a desperate one
which offered no real hope to them or anyone else.
It was the alternative of trying to pull the Empire
closer and closer together, of saying, "We will
make a contract to sell to Australia and they will
buy from England. Or, Australia will sell to
South Africa and buy from England." Deals
within the Empire : That was the alternative.
It was an alternative which would mean a low-
ered standard of living throughout the world; it
would mean lowered markets for the United
States. For the prosperity of this country can no
more continue in the face of a descending and im-
poverished world than it could continue in the
period of the 30's.
Those were the alternatives and, faced with that
situation, some of the criticisms which I hear seem
to me to be uninformed and almost frivolous.
Fortunately, those who were charged with the
responsibility of negotiating with the British
recognized the alternatives which faced us. They
said, "It is perfectly clear that over the next period
of three to six years the British will have a deficit
in their balance of payments."
Now, what is meant by the phrase "balance of
payments"? It means that with all the savings
that the British have in terms of the currencies of
other countries, with all the currencies of other
countries they receive from the goods they can
sell abroad, they will still not have enough money
to buy the essential goods which they have to im-
port into their island. The British have to im-
port goods in order to live. They must import
wheat ; they must import cotton ; they must im-
port the fundamental elements of food and cloth-
ing; but they have to do more than that. They
have to import machinery and the means of making
machinery to convert the factories which have
been making Spitfires, and bombs, and artillery,
and tanks into factories which make goods both
320
DEPARTMENT OF STATE BULLETIN
for domestic and foi* foreign consumption. They
liave to do even more than that. They have to im-
port the raw materials whicli those factories will
use in oixler to make the goods which they can then
sell abroad and from which they can earn money in
the form of foreign currencies. In other words, a
deficit in their balance of payments means that
the British bank account, the bank account in
which they have the currencies of other countries,
won't balance. They will have to draw more
checks on that bank account than they have
deposits.
It is to nobody's interest that the British be
forced into the situation which I spoke about a
moment ago. It is to nobody's interest that they
cease to buy abroad because they lack the necessary
dollars, or francs, or guilders. Nobody makes any
money when a customer is unable to buy. If that
customer is worthy of credit, it is to everybody's
interest that he be carried over the period of his
embarrassment. Therefore our negotiators said,
"What sum of money is necessary to carry the
British deficit in their balance of payments over
this period^ Of course, the British expect to
maintain an austere standard of living; they must
cut down on many things their people would like ;
for a while their standard of living may have to be
even lower than it was during the war; but they
must still be able to exist; they must still have
hope ; they must still go forward. Now what is the
amount of money that will be required?" That
was the question we had to answer. After many
calculations, and taking into account loans yet in
the oIKng from Canada and other countries to
whom Britain might look for credits, it was de-
termined that $3,750,000,000 would be the sum
which, added to these other credits, would carry
the British over the next few years; and that
amount \vas agreed upon.
I said that I wished to discuss two questions
tonight. The first was whether it was in our in-
terest to extend a credit to Britain, and I have
tried to explain what will haj)pen to us and to the
whole future of world trade if we do not extend
the credit. The second question related to the
terms of the agreement which was reached with
the British, and I would like to tell you why I
think the provisions which have been agreed upon
are fair terms and why they will greatly benefit us.
First let me summarize briefly the repayment
provisions of the agreement. The British may
draw upon the credit of $3,750,000,000 until the
end of 1951, and interest payments do not begin
until that time. On December 31, 1951 the first
payment of interest and a part of the principal
becomes due, and such payments continue for 50
years until the entire sum of the principal of the
loan plus the interest has been repaid. If in any
year the British foreign earnings from exports
and other transactions fall below a fixed standard,
the British may apply for a waiver of the interest.
In applying for a waiver they must agree that they
will secure a waiver of interest payments on their
debts to other countries, and the International
Monetary Fund created by the Bretton Woods
agreements must certify that the British foreign
earnings are, over an average period of five years,
below the standard set by the agreement. If
these conditions are met the interest is waived ; it
is not suspended for payment later, but waived
completely.
We do not wish to get into a position such as
the one which existed with respect to World War I
debts. In the 1920"s the British paid us over 2
billion dollars against the debt they had incurred,
and, when the depression came and they did not
have earnings sufficient to meet their obligations in
full, there. was no mechanism by which the debt
burden could be adjusted to conform to the stub-
born facts of the international situation. De-
fault followed, and the problems that it brought
have plagued us ever since.
But quite apart from the rejiayment of the credit
with interest, the British have agreed to do a
number of other things which are essential to the
prosperity of the United States and to the kind of
international trade which we as a nation seek.
When our negotiators sat down with the Brit-
ish they said. "We are willing to extend you a
credit. But you must agree to a number of other
things, so that we may hasten the time when trade
can be conducted more freely without the hamper-
ing restrictions which, even under the Bretton
AVoods agreements, you are entitled to impose for
a period of five years." After a good many dis-
cussions the British obligated themselves to do the
following things.
Fiist, they agreed that immediately after the
credit becomes available any American doing
business with the United Kingdom, anj' American
with investments there on which he receives divi-
dends, any American movie company which has
payments due on its films, any American who is
MARCH 3, 1946
321
involved in a current transaction with tlie United
Kingdom, is entitled to receive dollars. He will
not have to take blocked sterling which he cannot
use or which lie can only use for certain things;
he will receive dollars which he can use freely in
any way he chooses.
Second, the British agreed that, at the end of
one year, within the steiling area — the area in
which British currency is the medium for doing
foreign business and which inckides the British
Empire, except Canada and Newfoundland, plus
several other countries — anybody carrying on cur-
rent day-to-day business transactions and receiv-
ing pounds sterling can walk into a bank and ex-
change pounds for any currency he wants. This
is a tremendous stej) forward.
Third, the British went on to agree that at the
end of one ye»r they would not only make pounds
convertible into other currencies within the ster-
ling area, but every place else in the world as well.
This means that if a Frenchman sells goods to a
British merchant and receives pounds, he can
walk into a British bank and exchange his pounds
for dollars or any other currency. In this way the
pound and tlie dollar can operate as the great me-
diums of foreign business, free of the controls and
limitations which during the war prevented those
who sold in Britisli markets from using the pro-
ceeds to buy from us or elsewhei-e in the world.
But the British went still further. They agreed,
fourth, that from the effective date of the agree-
ment they would impose no import restrictions
which would discriminate against the United
States. Of course the Britisli, who will be short
of foreign exchange for some time, cannot permit
their people to spend dollars and other foreign
currencies for luxuries when their needs are so
great for essentials such as food, and raw mate-
rials, and machinery. But the British do agree
that any restrictions they impose upon imports
will be nondiscriminatory, and that every country,
including the United States, will have a free op-
portunity of trying to supply whatever the British
are willing to purchase abroad. That is all we
want. We are confident that American business-
men who are permitted to compete freely for trade
will prosper and thrive.
The British did not even stop there. They
agreed to a fifth thing of gi'eat importance. We
took up with them the question of their sterling
indebtedness which amounts to some 14 billion
dollars. This indebtedness to parts of the Empire
and other sterling-area countries is a very serious
problem. It is a tremendous debt which has many
trade results that I have already mentioned.
The arrangement we worked out was along these
lines. The British agreed that, with respect to a
substantial part of the indebtedness, they would
negotiate with their creditors to get it written off
the books as a contribution to the war. Much of
the sterling debt had been incurred in the sterling
area for the purchase of war supplies and for
services directly related to the war. The countries
which extended this credit should consider a large
part of it as their contribution to victory. The
British agreed that, with respect to an even larger
part of this sterling indebtedness, they would seek
to convert it into a long-term debt which could
be repaid over many years in annual instalments ;
and they agreed that any payments which they
made on this part of the debt could be used by
their creditors anywhere in the world. The bal-
ance of the sterling indebtedness the British
agreed to pay off' immediately; and they agreed
that the sterling which they pay immediately can
be exchanged by their creditors into dollars or any
other currencies and used wherever tlieir creditors
wish to use it. They did, of course, also agree that
they would not use the dollars we are lending them
to pay any of these debts.
Those are the obligations which the British have
undertaken in the financial agreement with us.
They are very large undertakings indeed. Surely
no one can say that we are simply lending the
British money without getting anything in return.
But we did not stop there. We also secured the
agreement of the British to support the trade pro-
posals which were published by this Government
last fall. These proposals were put forward with
a view toward freeing world trade of discrimina-
tory and hampering restrictions of all kinds. The
proposals relate to such matters as the reduction
of imperial preferences comparable to the reduc-
tions in our tariff, the lifting of quantitative
quotas and embargoes of a discriminatory nature,
the limiting of subsidies on exports to exceptional
and well-defined cases, the elimination of restric-
tions on the commerce of the world by cartels and
combines througli international action, the han-
dling of the difficult special problems of surplus
commodities, the creation of an international trade
organization under the Economic and Social Coun-
(Continued on page S29)
^ /
i
' / /
/ , /
'iw.
Plldtocnipll li.v J'-"" SI. TIm)iii;is
1651 Pennsylvania Avenue
WiiKN THE United States Uovernment
bought the Bhiir House in 1942 it acquired
a large slice of American history; for the Blair
House is an almost perfect epitome of American
life. The manner of its building, its structure,
and its interior decoration, its situation at 1651
Pennsylvania Avenue across the street from the
AVliite House and near the center of the political
life of the country, and the historical importance
of the men and events connected with the house
all contribute to making it thoroughly character-
istic of the larger pattern of American life.
The development of American ideas of beauty
and suitability has dictated the adaptations and
322
MARCH 3, 1946
323
additions that have been made from time to time
in tlie honse, and its present aspect represents
the changing taste of the country at large as well
as that of succeeding generations of the members
of the Blair family. As it originally stood in
1824 it was a modest two-story dwelling built after
the same model as scores of eighteenth-century
houses which are still standing in nuxny New
England towns rather than after the style of the
Greek revival which was already beginning to be
fashionable at that time. When Francis Preston
Blair bought it in 1836 he undertook certain major
repairs and alterations which did not, however,
materially affect the outward appearance. Fur-
ther modifications were made, and a third story
was added by his son, Montgomery Blair, and dur-
ing the occupancy of Gist Blair, the son of Mont-
gomery Blair and the grand.son of the first Francis
Preston Blair, the present exterior and interior
arrangements of the house took form.
For many years the Blair House was the only
building in what is now the block between Sev-
enteenth Street and Jackson Place, and the area
was laid out in flower and fruit gardens ; but dur-
ing the years when INIontgomery Blair was living
tJiere, immediately before and after the Civil War,
the whole block fronting on Pennsylvania Avenue
was built up. The Lee House adjoining the Blair
House on the west was built for Elizabeth Blair
Lee, the daughter of the elder Francis Preston
Blair and the sister of ^Montgomery Blair. In
1843 Elizabeth — Betty — had been married to Sam-
uel Phillips Lee of the Stratford branch of the
great Lee family of Virginia and an officer in the
United States Navy, afterwards a rear admiral.
The building on the corner of Pennsylvania
Avenue and Seventeenth Street, now the United
States Court of Claims, was erected by William
Corcoran for the Corcoran Art Gallery. The
building was begun in 1859, but during the Civil
War it was occupied by the Quartermaster General
of the United States Army, and it was not finished
and used as an art gallery until 187'2. In 1901 it
was purchased by the United States Government.
The Corcorcan Gallery of Art had been removed to
its present situation on Seventeenth Sti'eet between
E Street and New York Avenue and had been
opened to the public there in 1897.
The house to the east of the Blair House across
the alley, whose entrance is on Jackson Place, was
built very much as it is now by Peter Parker after
Article by KATHARINE ELIZABETH CRANE
Dr. Crane is a Divisional Assistant in the Division of
Research and Puhlication, Office of Puhlic Affairs, De-
partment of State. The Department released on Febru-
ary 23, Blair House, Hast and Present: An Account of
Its Life and Times in the City of Washington, with 16
illustrations in gravure, written hy Dr. Crane under the
direction of Dr. E. Wilder Spaulding, Chief of the Divi-
sion of Research and Publication, and Mr. Stanley
Woodward, Chief of the Division of Protocol. Before
she came to the Department of Stale, Dr. Crane was
assistant editor of the Dictionary of American Biog-
raphy and assistant editor of the Encyclopaedia of the
Social Sciences. The illustrations in the hook are
from photographs by Mr. Jean St. Thomas. The publi-
cation was prepared for presentation to distinguished
foreign visitors who are officially entertained by the
United States Government at the Blair House. An
edition has been printed for public sale and distri-
bution.
he came home from China. He had been one of
the earliest of the American medical missionaries
in China, and, while all the time continuing the
missionary practice of medicine, he had been
drawn into service in 1844 as secretary to Caleb
Cushing in the negotiation of the first treaty be-
tween the United States and China and later served
as secretary to the American Legation at Canton.
He returned to the United States in 1857 and died
in 1888.
The changes made in the Blair House during
the occupancj' of Gist Blair were extensive. The
fourth story was added; the grounds were re-
graded to accoi-d with the lowered level of Penn-
sylvania Avenue ; and the handsome wrought-iron
lamps and iron fence were set in tJieir present place
framing the graceful doorway. A basement vault
for storage and service was built out from the back
of the house with two or three feet of earth thrown
over the construction to provide for the garden
enclosed by tlie brick walls of the surrounding
buildings, which is all that is now left of the once
extensive pleasure grounds around the house.
Inside the house, woodwork and mantels, taken
from houses in Portland, Me., which were some
years older than the Blair House, were installed in
the dining room and in tlie room to the right of
the front door that was used by Montgomery Blair
as an office and is traditionally the room to which
President Lincoln came to sit and plan with the
324
DEPARTMENT OF STATE BULLETIN
Blairs at various times during the anxious years
of the Civil War. The woodwork and mantel in
the old "office" were taken from the Asa Clapp
House, which was built in 1797. That in the din-
ing room was taken from the Churchill-Ingraham
house built in 1801 and one of the earliest houses
planned by the architect Alexander Parris, who
was later the architect for St. Paul's Church on
Tremont Street in Boston, a church building
wliich in the architectural hist 017 of the United
States marks the end of the colonial tradition and
the beginnings of the age of classic revivalism.
Under Gist Blair's anxious eye Charles Over
Cornelius, curator of the American Wing of the
Metropolitan Museum in New York City, planned
and directed the execution of the entire design for
the upstairs library and the green and gold lined
sitting room on the third floor which Gist Blair
used as his own study.
A roster of the names of the men who have gone
in and out of the Blair House door would consti-
tute a long and at least partially complete list of
tlie Nation's politically famous. All but four or
five of the men who have been President during
the years of its existence have visited there. In
the years when the political importance of the
Blairs was at its height nearly all the men who
became leading candidates for the Presidency were
familiar to this house: in the fateful election year
of ISCiO notably Abraham Lincoln, the successful
candidate; John C. Breckinridge, the nominee of
the extreme Southern party, a kinsman of the
Blaiis and a friend of long standing in spite of
growing political differences; Stephen A. Douglas,
the regular nominee of the opposition party; Wil-
liam H. Seward who became Lincoln's Secretary
of State; and Salmon P. Chase who became Secre-
tary of tlie Treasury. Jefferson Davis, the Presi-
dent of the Confederacy, was a lifelong friend of
the Blair family in spite of the bitter differences
of politics and war. Such other important aspir-
ants to the Presidency as Henry Clay, Daniel
Webster, Tlunnas Hart Benton, and his son-in-law,
John C. Fremont, were all friends of the house.
The defeated candidate in the most bitterly fought
of all the presidential elections, Samuel A. Tilden,
was a close political friend of Montgomery Blair,
who after the election of 1877 refused to accept
the legal validity of tlie election of the successful
candidate, President Rutherford B. Hayes.
Long after the Blair family had ceased to wield
great political power, they enjoyed close social re-
lations with the White House. President Taft
felt so completely at home in the Blair House that
on one Inauguration Day after he became Chief
Justice of the Supreme Court he left his place in
the midst of the official festivities, and, easing his
large bulk under the ropes that had been put up
to restrain the crowds watching the inaugural pro-
cession, he climbed the stejDS to ring the doorbell
of the Blair House and unexpectedly to join the
gay Inauguration Day party being given there by
Gist Blair.
The names of the women who came within the
wide circle of the hospitality of this house form
an equally notable group. Among those visitors
whose names still live in history were Mi-s. Stephen
A. Douglas — Adele Cutts — grandniece of Dolly
Madison and granddaughter of Mrs. Richard
Cutts, who belonged to the same social group as
the Lovells in the years when they lived in the
house; and Kate Chase Sprague, the daughter of
Salmon P. Chase, who was for many years a figure
in the streets of Washington, young and beautiful
and old and broken. Varina Davis — Mrs. Jeffer-
son Davis — was a close friend of this house; and
it was to the Blairs that she appealed when the
Civil War was over and Jefferson Davis was im-
prisoned and suffering at Fortress Monroe; and
to this house came also Jessie Benton over and
over as girl and woman, the daughter of Thomas
Hart Benton and the fabulous wife of John C.
Fremont.
The place of the liouse in the history of this
country is also apparent from any consideration
of the names and jjositions of the men who have
lived there. The visits of the distinguished for-
eign leaders who have been entertained there by
the Department of State since it became the official
guest house of tlie Nation, and even the fact that
after the death of President Roosevelt it was the
home of President Truman for the first weeks of
the new administration, constitute only a continua-
tion of the hospitality it was able to offer during
all the years of its private ownership.
It was built on land that Commodore Stephen
Decatur had purchased for his own grounds when
lie came to Washington to settle down and invest
the prize money won by his brilliant victories in
the wars against the Barbary Pirates. The builder
of the house and its first owner. Dr. Joseph Lovell,
was a man whose family was closely identified with
the American Revolution in the Colony and later
the Commonwealth of Massachusetts and with the
MARCH 3, 1946
325
foundation of the Republic. Dr. Lovell himself
had served as a surgeon in the War of 181'2 and
had recently become the first Surgeon General of
the newly reorganized United States Army. Dur-
ing the trwelve years they lived in the house tlie
Lovells played their part as charming and influ-
ential members of the small aristocratic group of
leaders who dominated the life of the city.
Tlie second owner, Francis Preston Blair, was
one of the pi-ime movers in the rise of Jacksoniau
Democracy. He came to Washington shortly after
Jackson's inauguration, was a member of what has
been called the Kitchen Cabinet, and served the
President long and well. For half a century Blair,
his two sons, Montgomery and the younger Francis
Preston Blair, and other lesser connections of the
family exercised preeminent influence as makers
of American iiolitical policy. The Blair family
has been spoken of as "perhaps the most influential
family in the country."
During a brief period of time, 18-15 to 1852, the
Blair House was rented to a series of eminent ten-
ants : an Acting Secretary of War, two Secretaries
of the Navy, a Secretary of the Treasury, an At-
torney General, and a Secretary of the Department
of the Interior. It was during the time when
George Bancroft was living in the house that as
Acting Secretary of War, in May 1845, he signed
the order causing Gen. Zachary Taylor to cross the
Texas frontier with his troops, leading directly to
the Mexican AVar, and as the Secretary of the Navy
he issued to John Drake Sloat, Commander of
the Pacific Squadron, the order, dated June 24,
1845, which brought about the American occupa-
tion of San Francisco and other California ports
north of Santa Barbara.
In all the long struggle that led up to the Civil
War the Blairs were leaders in opinion and in
activity. Themselves each born in a slave State
and completely accustomed to the system of slav-
ery, they nevertheless realized very early that the
issue was the cause of essential conflict and ap-
parently almost without hesitation chose to adhere
to the anti-slavery side of the rising quarrel. Dur-
ing one of the early debates over the possible re-
peal of the Missouri Compromise the elder Blair
saw the implications of a controversy that was
leading to war and in a dramatic scene — at the
Blair country place. Silver Spring, rather than at
the town house on Pennsylvania Avenue — warned
his friend and kinsman John C. Breckinridge
against supporting sucli a measure: "John, if you
do it, you will live to see this country deluged in
blood one end to the other."
When the Civil War came the Blairs were in
positions of power and responsibility. The newly
elected President, Abraham Lincoln, gave the
elder Blair one of tlic three or four advance copies
of his first inaugural address with a request for
criticism and suggestion. Montgomery Blair be-
came Postmaster (ieiu'ral in Lincoln's Cabinet.
The younger Francis Preston Blair was elected to
Congress from Missouri and was commissioned
major general in the Union Army; and, alter-
nately, as the exigencies of the war seemed to de-
mand his attention in one or the other capacity,
occupied his .seat in Congress, took an active and
successful military role in the field, or devoted
himself to the various aspects of the political situ-
ation in Missouri.
Their political and business interests in the
three States, and their family connections, ad-
miiiistered from tlie family home on Pennsylvania
Avenue, enabled the Blairs to bring great influence
to bear on the political decisions of three pivotal
States, California, Maryland, and IMissouri — two
of them Bordei' States witli strong Southern feel-
ing. Later in the Civil War when the anti-slavery
party's success in controlling the Border State of
Missouri was already seen to be an important fac-
tor in determining the success of the Union, Pres-
ident Lincoln spoke feelingly of the predominant
position of the Blairs in the contest. "As you
know, they labored for ten years to build up an
anti-slavery party in Missouri, and in an action
of ejectment to recover the party in the State, they
could prove title in any common law court".
The house continued to be the scene of political
planning. At the outbreak of the Civil War Rob-
ert E. Lee, then a colonel in the United States
Army, came there at the request of tlie elder Blair
to discuss Lee's obligations of loyalty to the United
States and to the Commonwealth of Virginia as
they affected his fitness and his willingness to
command the Union armies. Two days later Lee
took the final step of submitting his resignation
from the United States Army.
Later in the war David Glasgow Farragut came
to this house for a breakfast-table meeting at
which it was decided that he should be given the
opportunity to command the Union forces against
{Continued on ixii/c 331)
684621—46 -J
326
DEPARTMENT OF STATE BULLETIN
The Economic and Social Council
of the United Nations
U. S. RESOLUTION ON TRADE AND EMPLOYMENT
7'eu'f of rexohiflon ndupt'd on Fehriiarji 18, re-
lating to proposed general world conference on
trade and employment which was introduced in
the Economic and Social CouncU by the United
States Delegation, to the United Nations
1. The United Nations have already taken im-
portant steps to-wai'd the establishment of inter-
national maehinery for the i)roniotion of economic
cooperation among nations with the object of pre-
venting and removing economic and social malad-
justments, of achieving fairness and equity in eco-
nomic relations among states and of raising the
level of economic well being among all peoples.
The Food and Agriculture Organization of the
United Nations, the Inteinational Monetary Fund
and the International Bank for Reconstruction
and Development have already been established as
contributions in their respective fields toward the
achievement of these objectives. The Economic
and Social Council has been established as the
agency for integrating the activities of all of these
agencies into an effective whole.
2. It is essential that the cooperative economic
measures already taken be supplemented by fur-
ther measures dealing directly with trade barriers
and discriminations which stand in the way of an
expansion of multilateral trade and by an un-
dertaking on the part of nations to seek full
employment.
3. Cooperative action with respect to employ-
ment and to trade barriers and discriminations is
indispensable to the success of such other measures
as those dealing with monetary and exchange sta-
bility and the How of investment capital. Effec-
tive action in regard to employment and to trade
barriers and disci'iminations must therefore be
taken or the whole piogram of international eco-
nomic cooperation will fail and an economic en-
vironment conducive to the maintenance of peace-
ful international relations will not be created.
4. The Government of the United States has
proposed that the United Nations should call such
a conference in ID-ttJ and has published a set of
proposals for the expansion of world trade and
employment for consideration by the peoples of
the world and to serve as a basis for discussion in
an international conference in the belief that pre-
vious international conferences in the field of com-
mercial policy have had but limited results because
they were for the most part confined to policies in
the abstract and not closely enough integrated
with arrangements for concrete action.
The United States Government has further in-
vited a number of governments to meet together
for the negotiation of reductions of specific trade
barriers and discriminations in advance of the
general international conference. Similar nego-
tiations are to be proposed to all other countries
of like mind as rapidly as possible.
5. These initiatives have been welcomed by a
number of delegations in the opening debate of
the General Assembly.
6. The Economic and Social Council lias been
authorized in general by Article 62 of the Charter
of the United Nations to call international con-
ferences on matters falling within its competence
and specifically by supplementary rule T of the
Provisional Rules of Procedure of the General
Assembly to call a conference on international
trade and employment. The Economic and Social
Council therefore :
A. Agrees in conformity with supplementary
rule T to sponsor the convening in the hxtter part
of 1946 of an International Conference on Trade
and Employment for the purpose of promoting
tlie expansion of the production exchange aud
consumption of goods.
B. Proposes that the nuijor chapters of the
agenda of this confei'ence be as follows:
a. International agi'eement relating to the
achievement and maintenance of high and stable
levels of employment and economic activity.
h. Interiiational agreement relating to regula-
tions restrictions and discriminations affecting in-
ternational trade.
MARCH 3, 1946
327
c. Interimtioiiiil agreement relating to restric-
tive business practices.
d. International agreement relating to inter-
governmental conunodity arrangements.
fi. Establishment of an international trade or-
ganization to l)e a specialized agency of the United
Kalions liaving responsibilities in the fields of (6)
(c) {(/) above.
C Hereby constitutes a jireparatory committee
of the Economic and Social Council to elaborate
an annotated draft agenda including a draft con-
vention for consideration by the conference taking
into account suggestions which may be submitted
to it by the Economic and Social Council or di-
rt'ctlv b\' menil)ers of the United Nations. Tiie
members of this committee shall consist of repi'e-
sentatives designated by the governments of the
countries referred to in paragraph 4 above and of
two other countries members of the Economic and
Social Council designated by the Council. A rep-
resentative of the Secretariat of the Council shall
participate without the right to vote in the meet-
ings of the Committee.
D. Requests the President of the Economic and
Social Council to confer with members of the
Council and with the Secretary General with a
view to reporting to a subsequent session of the
Council recommendations as to what states if any
not members of the United Nations should be in-
vited to the Conference on Trade and Employment.
Conference of Economic Counselors and Advisers
to United States Missions in Europe
PARIS
January 28-February 2, 1946
The Conference was called by the Department
of State for discussion and explanation of the
paramount economic and financial problems and
policies dealing with the European area. The host
Embassy ai'ranged for discussions to be held in the
Salon des Aigles, Hotel Crillon.
Delegations from 22 of the 25 European INIissions
and Treasury representatives fi'om three Missions
attended the Conference. Frank W. Fetter, Act-
ing Chief of the Division of Investment and
Economic Development, and Fisher Howe, Spe-
cial Assistant to Mr. Clayton, attended from the
Department. In all, approximately 60 officers
were in attendance. A secretariat was composed
of members of the Paris and London Embassies.
Jefferson Caffrey, American Ambassador to
France, opened the Conference. The Ambassador
later in the week gave a reception for all the
delegates.
Livingston T. Merchant, Minister-Counselor for
Economic Affairs at Paris, was designated Chair-
man and the appointment of the following other
officers was made by the Conference : Arthur Bliss
Lane, American Ambassador to Poland as hon-
orary Chairman, and Harry C. Hawkins, Minister-
Counselor for Economic Affairs at the American
Embassy, London, Thomas C. Blaisdell, Jr., Min-
ister and Chief of Mission for Economic Affairs,
and William Taylor, Principal Treasury Repre-
sentative in Eurctpe (unable to attend) as Vice
Chairmen.
Agenda
The following subjects were included in the
agenda, though the discussion did not follow the
order listed :
1. Proposals for World Trade and Employment
(Hawkms)
2> American Financial Policy (Fetter)
a. British Loan
l>. Export-Import Bank
c. Bret ton Woods
d. Lend-Lease Legislation
e- Surplus Property
3. Emergency Economic Organizations (Blais-
dell)
a. European Coal Organization
b. European Central Inland Transport Or-
ganization
c. Emergency Economic C o m m i 1 1 e e for
Europe
328
DEPARTMENT OF STATE BULLETIN
4. Resumption of Trade
a. Reconstruction of Europe with particular
reference to Russia
b. Bilateralism in Europe
c. American Businessmen
d. Industrial Reporting
5. Miscellaneous
a. Safehaven and Reparations
b. UNRRA
c. Post-war Combined Board Problems
d. Telecommunications
e. Administrative and Personnel Problems
Course of Discussion
The delegate most familiar with each subject
lead the discussion on each topic.
Discussion took the form, in some instances, of
detailed explanation of particular jjolicies or pro-
l^osals. This was followed by discussion of the
application of the policies to the several areas and
to related problems that arose from the policies,
particularly in regard to trade and financial
policy. In other instances, the discussion took the
form of a round-table discussion led by selected
delegates.
The Conference was of real benefit and useful-
ness, both to tlie economic otticers in the field and
to the representatives of the Department. Tlie
direction of the discussion indicated that there was
some ignorance and misunderstanding of the
American position in certain economic jiolicies and
of the problems being faced, a large number of
which seemed to be cleared up to the satisfaction of
the delegations. One outstanding example of this
was in the "Proposals for World Trade and Em-
I)loyment'', where explanations by Mr. Hawkins
of the intent and reasoning involved in certain pas-
sages radically changed the understanding and
outlook of certain Missions to the proposals. The
discussions indicated the need for closer liaison
between the Department and the field.
Great benefit seemed to be derived, too, from the
discussion of the applicatioji of problems and
policies to certain areas which were either in com-
mon to all Euroj^e or varying with each country.
The able handling of the meetings by the Chair-
man, and the careful organization of the meetings,
including the distribution of necessary documents,
made a major contribution to the success of the
Conference.
The following officers represented their Missions at the
Paris conference of economic counselors and advisers :
From Name
Ankara Edward B. Lawson, Counselor of Em-
bassy for Economic Affairs
Athens William Witman, 2d, Asst. Commer-
cial Attache
Belgrade Harold Shantz, Counselor of Embassy
Albert E. Evans, Senior Economic
Analyst
Berlin .John W. Tuthill, Foreign Service officer
Miss Joan Clark, Mr. Tuthill's Secretary
Froelich G. Rainey, Senior Economic
Analyst
Bern Marcel E. Malige, Commercial Attach^
Brussels Raymond C. Miller, Counselor of Embassy
for Economic Affairs
(Treasury)-. Matthew Marks, U. S. Treasury Repre-
sentative
Budapest L. Laszlo Ecker-Racz, Senior Economic
Analyst
Copenhagen George Carlson, Commercial Attach^
Lisbon Charles E. Dickerson, .Jr., First Secre-
tary
Theodore A. Xanthaky, Special Assistant
to the Ambassador and Attache
London Thomas C. Blaisdell, Jr., Minister, Chief
of MEA (Mission for Economic Af-
fairs)
Harry C. Hawkins, Minister-Counselor
for Economic Affairs
(Mrs. Hawkins, Miss Hawkins)
Theodore Geiger. Executive Officer, MEA
William M. Tomlinson, U. S. Treasury
Representative
Paul Porter, U. S. Representative, MEA
Daniel Hopkinson, Assistant to the Min-
ister
Mrs. Edith Tiltou Penrose, Adviser to
Ambassador Winant
Donald B. Calder, Tliird Secretary
(Mrs. Calder)
Miss Ruth Beatrice Russell, Economic
Analyst, MEA
Mrs. Badliam, Secretary to Mr. Blaisdell
Honor»5 M. Catudal, Special Assistant to
Mr. Hawkins
Avery F. Peterson, First Secretary
Herbert Fales, Second Secretary of Em-
bassy
Madrid Harold M. Randall, Commercial Attache
Harold Rhodes, Commercial Attach<5
Moscow Horace H. Smith, First Secretary
Thomas P. Whitney, Attach^
Oslo H. Lawrence Groves, Counselor of Em-
bassy for Economic Affairs
Praha James F. Hodgson, Counselor of Embassy
for Economic Affairs
William Diamond, Senior Economic
Analyst
Rome Charles A. Livengood, Counselor of Em-
bassy for Economic Affairs
MARCH 3, 1946
329
Rome Myron L. ]!l;i(k. Shipping Adviser
H. Gardner Aiusworth, Third Secretary
Stm-lclidlni Donald W. Smith, Commercial Attache
M. Gordon Knox, Third Secretary
The Hague Jesse F. Van Wickel, Commercial At-
tache
Tirana George D. Henderson, Secretary
Vienna Jlrs. Eleanor L. Dulles, Senior Economic
Analyst
Frederick H. Bunting, Senior Economic
Analyst
Warsaw Arthur Bliss Lane
Washington, Frank W. Fetter, Chief, Economic Invest-
D. C. ment and Development
Cove.v Oliver, Reparation Commission
Fisher Howe, Special Assistant to As-
sistant Secretary
ACHESO^— Com ill I'cd from page 321
cil of the United Nations, and tlie etforts to pro-
vide full and regular eniplo_vnient in each country
by domestic, action which will avoid harmful ef-
fects on the employment situation in neighboring
countries.
Without the credit which we have agreed to
extend to the British, it would be wholly impossible
for them to undertake the conunitments included in
the financial agreement and quite beyond their
capacities in the next few years to support our
proposals for securing a multilateral trading sys-
tem in which the businessmen of the United States
can freely compete for the markets of the world.
And yet even this was not all that was agreed
upon in our negotiations with the British. We
had also to think of the lend-lease and reciprocal-
aid accounts and of the United States surplus
property in the United Kingdom. This was a
problem which might easily have been bungled,
and which might have hung on to strain and en-
danger and complicate our relations for decades.
During the course of the war we had sent to the
British on lend-lease about 25 billion dollars' worth
of goods. These goods ranged from tanks, and
planes, and shells to food, and blankets, and medi-
cal supplies. But the greater part of the total had
been either blown up or used up in our common
effort against the enemy. At the end of the war
there still remained a sizable amount of goods.
Some of these were of a military nature, some
civilian. There was also a very sizable amount of
surplus property in the United Kingdom, much of
which had little value. The British might have
said to us, "We wish now to return to you eA^ery-
thing that is left and you may take it away with
you", but if they had done that we would have been
faced with the absurd situation of packing up all
of these supplies and paying enormous amounts in
•freight and service charges to bring them home.
It would have been absurd for another reason,
since the British had a use for many of the goods
which were there. And, of course, we had large
(quantities of supplies which we had received from
the British on reverse lend-lease. These supjjlies
were in the hands of our armed forces all over the
world.
What we did was to look at all that remained
in their hands and in ours and agree with the
British upon a value for all of it. When the
accounts were balanced, it was found that the
British owed us G50 million dollars, and the Brit-
ish agreed to pay us that amount. This will be
paid on the same terms as those provided in the
financial agreement — in 50 annual instalments.
The entire slate has now been wiped clean. What
we received for those goods which were destroyed
fiv (■onsumed is the effort which our Ally was able
to i)ut forth in winning the war, and that is
enough. We have made a fair settlement for
what was left, and that should be very hearten-
ing to the American people wlio always wished
that lend-lease should be a great war-mechanism
and that it should be promptly and fairly settled
at the war's end.
I think you will agree that we found solutions
to a very considerable numljer of difficult prob-
lems. What we attempted to do in the negotia-
tions with the British was to reach a settlement
of all of the outstanding financial and commercial
problems which confronted us. We thought it
was appropriate that we secure a settlement of all
of these problems in connection with the granting
of a large credit to the United Kingdom. We did
not think it was ap^jropriate to try to use the
lever of the credit to practice dollar diplomacy in
fields quite unrelated to financial and commercial
questions. Questions of territorial sovereignty
and other political matters are not subject to
solution by such methods.
What we have done is to arrive at an under-
standing with a nation whose position in world
commerce is unique, to move forward towards the
removal of controls and restrictions which hamper
and reduce international trade, so that both we
and other nations may prosper in an expanding
world economy.
International Organizations and Conferences
Calendar of Meetings
The United Nations:
General Assembly
Security Council
Economic and Social Council
London
London
London
Council of Foreign Ministers: Meeting of London
Deputies
North American Regional Broadcasting En- Washington
gineering Conference
Anglo-American Committee of Inquiry Cairo
International Cotton Study Group: Sub-
committee of the International Advisory
Committee
West Indian Conference
Extraordinary Meeting of the Directors of
the International Meteorological Serv-
ices (I MO)
Far Eastern Commission
Regional Air Navigation Conference
International Monetary Fund and the Inter-
national Bank for Reconstruction and
Development: Boards of Governors
Fourth Session of the UNRRA Council
Preliminary Meeting of Conference on an
International Health Organization
The dates in the calendar are as of Feb. 24.
Washington
St. Thomas, Virgin Islands (U. S,)
London
January 10- February 15
January 17-February 16
January 23-February 18
January 18 (continuing in session)
February 4 (continuing in session)
Hearings opened on about March 1 ; hear-
ings closed in Germany and Austria
on February 23.
February 18-23
Februarj^ 21 (continuing in session)
February 25-March 2
Washington
February 26 ,
Dublin
March 4
Wilmington Island, Ga.
March 8
Atlantic City
March 15
Paris
March 15
Activities and Developments
The West Indian Conference,^ wliicli opened its
three-week second session on February 21 at St.
Thomas in the Virgin Ishmds of the United States,
is believed to be the first international convention
of delegates from non-self-governing territories.^
Two delegates from each of 15 Caribbean terri-
tories will participate in the second session, which
occurs two years after the first session, held at
' Released to the press Feb. 21.
" For message to the Conference from President Truman
and address by Mr. Taussig, see p. 332.
330
Barbados, B.W.I. Accompanied by advisory
staffs, the delegates represent territories of four
metroi)olitan Governments : Great Britain, France,
the Netherlands, and the United States. Confer-
ence conclusions will be submitted to the Caribbean
Commission, which in turn will submit them to the
metropolitan Governments.
The Commission was created on March 9, 1942 as
the Anglo-American Caribbean Commission in a
joint communique issued at Washington and Lon-
don. The West Indian Conference was inaugu-
MARCH :i, 1946
331
rated in March. 1944, under the Commission's aus-
pices. Announcement of tlie expansion of tlie Com-
inission to include French and Netlierhrnds sections
was made on December 20, 1945.''
Tlie territories represented at the Conference,
which the Commission will attend in an advisory
capacity, follow:
Great Britain : Bahamas, Barbados, Jamaica,
Trinidad, British Guiana, British Honduras, Lee-
ward Islands, Windward Islands.
Netlierlands: Curagao, Surinam (Dutch Gui-
ana).
France: ^lartinique, Guadeloupe, French Gui-
ana.
United States: Puerto Rico, Virgin Islands.
The Far Eastern Comniission will hold its first
meeting since its return to Washingto]^ at 10 : 30
a. m. on Tuesday, February 2fi. in the offices of the
Commission at 2516 Massachusetts Avenue. The
Secretary of State will address the members of
tlie Commission at that time.
Boards of Governors; The first meetings of the
Boards of Governors of the International Mone-
tary Fund and the International Bank for Recon-
struction and Development will begin at the Gen-
eral Oglethorpe Hotel, near Savannah. Georgia,
on March 8, 1946. The meetings which are ex-
pected to continue for about two weeks are being
held for the purpose of establishing the two in-
stitutions. The meetings will consider the follow-
ing:
1. Adoption of bylaws of the Fund and Bank.
2. Selection of a permanent site for the Fund
and Bank.
3. Election of the 7 elective directors each of
the 12 executive directors of the Fund and Bank.
4. Consideration of terms and conditions of ad-
mission of new members.
5. Consideration of U.S. proposal permitting
admission to membership during a limited period
of time of signatory countries which did not ratify
bv December 31, 1945.
CRANE — Continued from piii/c 325
the Confederates at New Orleans, an undertaking
wliose miqualified success opened the way for all
the further Union operations on the Mississippi
River, the division of the South into two parts,
and tlie prevention of the transfer of Confederate
men or materials between the eastern and western
portions of the Confederacy. Farragut was com-
missioned admiral, a grade especially created for
him, and he acquired a preeminent position in the
United States Navy comparable to that which
Nelson has had in the British Navy.
After the war was over and almost at the end
of the long bitter Reconstruction Period a notable
dinner was given at the Blair House for Wade
Hampton, the South Carolina hero of the Con-
federacy and of the Reconstruction Period. There
for the first time since the war many Northern
leaders renewed their connections with Southern
leaders; old friendships were revived across the
tragic memories of the late war; and new plans
were made for the return of political peace and
united prosperity.
Nevertheless, in spite of all the dramatic array
of important events in the life of the Biair House,
there is one small almost unknown episode out
of all the others which at this particular mo-
ment of time can be said to constitute the dearest
claim of the house to represent within itself the
life of the American people. It was a scene that
has had its modern counterpart over and over
again in the recent months of war's end. William
Tecumseh Sherman, not yet — but to become — the
famous General William Tecumseh Sherman, was
married in this house, and to this house he came
to claim his bride, Ellen Ewing, whose father, the
first Secretary of the Department of the Interior,
had rented the house from the Blairs. They had
been seiaarated, and their engagement had
lengthened to seven years on account of the Mexi-
can War, a series of Indian Wars, and the neces-
sities of garrison duty in the Far West. In the
late winter of 1850 he was sent east with official
despatches. Without time or opportunity to give
advance notice of his coming he made his way
up Pennsylvania Avenue toward the Blair House.
Ellen was in the back drawing-room feeding her
canary. She heard a noise in the street and
recognized the dearly remembered steps coming
toward the house. She turned and was at the door.
There he was — her lover home from the wars !
' Bulletin of Dec. 2,3, 1945, p. 1023.
Record of the Week
Second Session of the West Indian Conference
Message From PRESIDENT TRUMAN
My De ak Mr. Taussig :
As you know, I have been deeply interested in
the work of the Caribbean Commission, formerly
tlie Anglo-American Caribbean Commission. As
a consequence of that interest, I am naturally most
happy that the United States of America is to be
the host nation at the Second Session of the West
Indian Conference. I take this occasion to ask
that you, in your capacity as Chairman, convey to
the Conference not only my warm greetings but
my sincere best wishes for a most successful Ses-
sion. I further ask that you bring the following
message to the Conference :
The policy of the United States with respect to
the governments and peoples of the non-self-gov-
erning territories of the Caribbean region will be
guided by the following basic tenets:
1. To encourage the effective application, by all
practicable means, of the fundamental principles
set forth in Chapter XI of the Charter of the
United Nations, entitled "Declaration Kegarding
Non-Self -Governing Territories", to the end that
the progressive development of the peoples of the
region in political, economic, educational, and
social matters shall be insured. This Government
takes the view that members of the United Nations
which have responsibilities for the administration
of non-self-governing territories in this region
have undertaken a solemn obligation in this re-
spect, and notes with particular satisfaction that
in all such territories the interests of the inhabi-
tants are to be regarded as paramount.
2. To support the work of the Caribbean Com-
mission to the end that problems of the region
may be approached as a whole, and not piecemeal.
The above text of the President's message was released
t<i the pres.s on Feb. 21.
Such support will strengthen this multilateral
governmental organization, which offers proce-
dures for constructively attacking regional prob-
lems. The Caribbean Commission, formerly
known as the Anglo-American Caribbean Conmiis-
sion, has been recently expanded to include the
Governments of France and the Netherlands. The
Government of the United States looks with sat-
isfaction on this expansion. It anticipates in-
creasing participation in the work of that Com-
mission by the peojiles of the territories of the
four countries concerned.
This Government looks forward to an increas-
ing measure of self government by the people of
the Virgin Islands of the United States. With
respect to Puerto Rico, it has been recommended
to the Congress of the United States that it pro-
vide a means bv which the people of Puerto Rico
might choose their form of government and ulti-
mate status with respect to the United States.
3. To assist, by appropriate action, in carrying
out the economic objectives recommended by the
First Session of the West Indian Conference held
at Barbados in March 1944. Steps to effectuate
tliese objectives received Presidential approval on
June 11, 1945, and were included in a Joint State-
ment of the Governments of the United States and
of the United Kingdom later made ijublic.
4. To support any suitable plan which would
bring the non-self-governing territories of the
Caribbean region into closer cooperation with each
other, with a view to developing the educational,
social, and cultural institutions of the region, im-
proving the standards of living of the people, and
strengthening the foundations upon which self-
governing institutions may be developed.
Sincerely yours,
Haeey S. Truman
332
MARCH 3, 1946
333
Address hy CHARLES W. TAUSSIG
Your Excellency; Fellow Commissioners;
Delegates to the West Indian Conference;
Ladies and Gentlemen: You have just heard a
significant message from President Truman. It
is fitting to recall that another great leader
played an important part in the creation of this
Commission and this Conference. Franklin
Delano Roosevelt knew and loved the Caribbean.
He knew your problems and believed in the future
of the West Indies. The spirit of his leadership
will be a constant inspiration to us in the work
that lies ahead.
History tells us that the past always impinges
on the present. Nothing we here undertake, no
matter how sincere our motives nor how wise our
decisions, can abruptly be disassociated from that
which has gone before. We are confronted with
this fact at every turn in the road that leads to
social and economic betterment for the people of
the Caribbean. Always the old plantation system
with its vnisavory by-products casts a grotesque
pattern across our path. As we move forward
these shadows become less distinct, their evils less
menacing, and our progress more rapid.
Part of the West Indian Conference will be
devoted to a review of the progress we have made —
and it is considerable ; another part will consider
the basic problems of West Indian economy and
society ; and a third will concern itself with specific
reconnnendations for projects promptly to be un-
dertaken.
We will come to these discussions with a new
sense of maturity because of our experience in the
Caribbean during the past four years, and because
of a new approach to world unity through the
United Nations Organization. The United States
and Great Britain have welcomed two new asso-
ciates into tliis regional fellowship. With France
and the Netherlands as full-fledged members of
the Caribbean Commission and with 15 Caribbean
territories represented in the Conference, new
horizons of organization and opportunity will
open up to us. We will have to devise effective
machinery for the expanded organization. We
will have to put into practice in peacetime the
aims and ideals which could not be realized in
time of war. We will have to show the world that
in this relatively small Caribbean cosmos great
nations and small territories can plan their re-
gional life in friendly cooperation. If we are
successful, the troubled world will gain new hope
from our achievement. The details of these plans
and the failures and accomplislunents of the past
will be discussed at length by the delegates to this
Conference in the next three weeks. It is not my
l^uriDose here to review those plans or to antici-
pate those discussions. My few words to you now
will deal with another subject, one not now on our
agenda, a problem less concerned with countering
the evils of the past than with successfully over-
coming a menace of the future.
As we gather here today we are confronted with
a new problem, one that is so fantastic, so appar-
ently unreal, that we barely recognize it as the
immediate and urgent concern of this Conference.
I refer, of course, to the atomic bomb, the weapon
that offers the world the alternatives of durable
peace or extinction. Through the centuries man
has striven for peace. All of his efforts have re-
sulted in failure. Now we are confronted with
the awful implications of this new knowledge.
We must make another effort to obtain a lasting
peace, a cooperative effort of a magnitude beyond
anything that has gone before. Failure this time
means obliteration. But if we succeed we have
the assurance of scientists that atomic energy can
be made to yield unprecedented benefits to man-
kind. This new effort towards peace will compel
many social, political, and economic adjustments.
The part that the Caribbean must play is not only
of importance to the area itself, but to the world
at large. For at this point in history when dis-
tance and mere armed might do not assure safety,
the problems of each part of the world are vital
to all others. Even before the atomic bomb came
into being it was recognized that there cannot be
peace while the maladjustments of one part or
another of this steadily shrinking world go
uncorrected.
The Caribbean Commission and the West In-
dian Conference have been doing their part to
focus attention upon and help solve the difficulties
that beset this region. We have met with some
The above address was delivered before the opening
plenary session of the West Indian Conference on Feb.
21 in St. Thomas, Virgin Islands (U. S.) and was released
to the press on that date. Mr. Taussig, chairman of the
U. S. section of the Caribbean Commission, is chainnan
of the Conference. For other information on the Con-
ference see page 330.
334
DEPARTMENT OF STATE BULLETIN
measure of success. The task still ahead is tre-
mendous. We must continue to think tliese prob-
lems through. We must continue to have con-
ferences to discuss, to argue, to disagree — and ulti-
mately to agree ujjon solutions. ]?ut in our de-
sire to be logical and thorough we umst not over-
look the fact that the great menace confronting
us today demands speed and more speed in achiev-
ing our objectives.
What are these objectives? We have repeated
them over and over again, "social, economic, and
political progress". These objectives are not mere
ab.stract ideals when translated into better-fed,
better-clothed, and better-educated human beings.
But these practical reforms can become mere
palliatives unless built on the foundation of essen-
tial human rights. Nowhere on this agenda and
at 110 time in our previous conferences, do we find
any specific mention of human rights. The race
we are running against atomic energy cannot be
won alone by economists, scientists, or politicians.
We the people must define — and j^recisely — the
goal of luunan aspirations that we seek. Thei'e
is a unifying purpose in the world today which,
if properly expressed, can serve as a guide for
those whom we choose as our leaders. This pur-
])ose is to be found in the fundamental and simple
desires of the common man. I do not exaggerate
when I say tliat these desires are simple. They
l)ecome complex only when we awkwardly translate
them into complicated political and economic
ff)rmulas.
Mankind requires two well-defined charters
which shall be basic for all that we strive to at-
tain. One is a bill of human rights, a simple state-
ment of what an individual may require of his
fellow men to live his life in security and happi-
Jiess. The other is a bill of human obligations, a
statement of the sacrifices that must be made by an
individual to assure these basic rights to his
neighbor.
There is a growing conviction, supported by
many scientists and technicians, that the only real
defense against the misuse of atomic energy is to
be found in the spiritual awakening of mankind.
Our hope for security lies not in the field of science,
but in the realm of morals.
I believe that the people of the Caribbean might
well take a leading part in formulating these
charters. For here live together representatives
of most of the i^eoples of the world — Africans,
Europeans, Americans (North and South), East
Indians, Chinese, and many others. Some of the
great religions of the world are represented here —
Hindu, Mohanmiedan, Christian, Confucianist and
Jewish. No charter of human rights nor its corol-
lary, a charter of human i)bligations, can have
world acceptance unless derived from the wisdom,
the philosoi)hy, the ethics, and the religious aspi-
rations of all the peoples of the world. The time
has come, I think, for the West Indian Conference
to give its attention to this fundamental problem.
Perhaps you of the Caribbean out of the experi-
ence of your long and often sorrowful history can,
with tire aid of God, bring to yourselves and to
the world a woi'king philosophy that will aid man-
kind in its quest for freedom, dignity, and security.
Development of the
St. Lawrence Seaway and
Power Project
Statement by UNDER SECRETARY ACHESON
Mr. Chairman: The purpose of the legislation
before you is to increase the wealth of the United
States by developing one of the greatest natural
I'esources in the world, the Great Lakes-St. Law-
rence Basin.
The St. Lawrence Seaway is as old in its con-
ception as the history of our country. The search
for easy water conununication to carry the com-
merce of the world led exjjlorers and traders
through this route -100 years ago. For over half
a century the Governments of the United States
and Canada have worked towards the development
of a waterway from the Atlantic Ocean to the great
farm lands and factories of ihe interior of our
continent. The Seaway is not a new project. In
fact the legislation before you provides merely
for a .series of improvements of an already existing
inland waterway which are the logical sequel
to the construction by the United States of such
great woi'ks as the MacAi'thur Locks at Sault Ste.
Marie and by Canada of the Welland Canal con-
necting Lake Ontario and Lake Erie. Today the
Great Lakes-St. Lawrence System lies like a great
highway of connnerce stretching for :2,400 miles
from Newfoundland into the industrial and agri-
Made before the Subcommittee of the Senate Foreign
Relations Committee on legislation for the St. Lawrence
Si'MWiiy and Power Project ( S. J. Res. 104, 70th Cong.)
and releaseil to the press Feb. 18.
MARCH 3, 1946
335
ciillm'iil lieart of tlie United States and Canada,
its potentialities for producing wealth limited only
by some rapids between northern New York and
Montreal where the existing canals are too shallow
for most ocean-going vessels. The question now
before you is whether this short obstruction should
be removed.
Secondly, the legislation would provide for the
construction in the International Rapids Section
of hydroelectric-power works which would con-
vert the torrential flow of the St. Lawrence into
one of the greatest sources of cheap power in the
world. The single power dam to be built will have
a generating capacity of 2,200,000 horsepower,
half of which would be made available to Canada
and half reserved to the United States. The bill
before you would wisely provide that the United
States share of these jiower facilities be turned
over as a public power j)roject to the State of New
York whicli will share with the Federal Govern-
ment in the cost of the project.
It is estimated that all of this will cost the
United States some $285,000,000 on the basis of
1041 figures, of which about one third would be
paid by New York so that the total cost to tlie
Federal Government would be something under
it^200,000,000. Some of the work, allocated to the
United States and included in this estimate, such
as the Mac Arthur Locks, has been done since 1941,
and there will be some changes in these figures as
the result of price variations. The Corps of En-
gineers will address themselves to this point.
What is the interest of the State Department
in this matter? The obvious basis of the State
Department's interest is that for geographical
reasons the St. Lawrence project must be built in
cooperation with Canada. The working out of the
plans has required negotiations over a period of
many years with the Canadian Government on a
variety of questions such as the sharing of the cost,
engineering plans and so forth, in the negotiation
of which the State Department has cooperated with
other agencies of our Government. The result of
these negotiations is the agreement of March 19,
1941 with Canada the approval of which is pro-
vided for in the pending legislation. The nego-
tiation and execution of this agreement in co-
operation with Canada would in itself constitute
a remarkable example of international coojjera-
tion.
But, it may be asked — aside from this are not
the issues involved pretty much of a domestic
character just as in any other public-works pro-
gram? The answer to that is ol)viously "yes —
in part" — but there is a larger interest that our
Department has in the matter which in turn is in-
timately related to the principal question which
must be asked about this legislation, namely —
What does the LTnited States get out of all this
to justify the expenditure involved?
From the standpoint of our national security,
the answer to that is clear. I have here a letter
from the Secretary of War which states that the
construction of the Seaway is a matter of impor-
tance to our national defense. (A similar state-
ment also has been filed by the Secretary of the
Navy.)
But from the stand]3oint of the development of
our national wealth the advantages of the con-
struction of the Seaway are even greater. The
heart of our agricultural and industrial wealth lies
in the great middle section of the United States
around the Great Lakes. Almost unique among
the highly industrialized sections of the world, our
Middle Western manufactui'ing areas have grown
up far away from ocean transportation. One of
the chief reasons for this, of course, has been low-
cost inland transportation on the Great Lakes.
But since the first World War this area has pro-
gressively grown into a surplus producing area
which now must ship its products not only within
the LTnited States but to foreign countries and
which must procure its raw materials not only
from within the LTnited States but increasingly
from abroad. For all of this a water route to the
sea is needed. Our farmers in this area have com-
peted in world markets despite their transporta-
tion disadvantages.
The time has come when we can no longer be
profligate with oiu' natural resources. To main-
tain our production in the Middle West at the
increased rate which will be necessary to supply
jobs for our working population — including re-
turned servicemen — at the standards of living to
which our people justifiably aspire, we must make
use of every single profitable resource that we have
available. Our great civilization in the Middle
West has competed in the world market despite
our higher living standards and higher costs, not
onl,y because of the special genius for production
of the American people but because we have had
336
DEPARTMENT OF STATE BVLLETIIS
in the United States conditions of climate, natural
resources, and fertility of soil which liave made
it possible for us as a nation to get more out of
what we put into the job of producing goods,
relatively speakin<;-, than any other country in the
world. We have had in otlier words a margin of
superiority in this respect that is the basic reason
for the miracle of our industrial development and
of the staggering production performance of tlie
United States during this war. We must make
our plans carefully to maintain tliis margin of
superiority and to go constantly forward in our
industrial and agricultural development. For
this purpose, we have negotiated and submitted
to the Congress for approval the agreement with
Canada that is now before you.
The St. Lawrence project has been described
in the Department of Commerce Survey of 1941
as "among those projects which will reduce the
expenditure of human energy per unit of product
produced". It will make it possible not only to
cope with the transportation problems wiiich will
arise as our present (freat Lakes industries call
upon the outside world for more and more raw
materials, but it will also help to serve other in-
dustries which may be expected to develop in this
area in the next 30 years. It will enable the
farmer to get more out of his wheat crop and per-
liaps to make his crop larger to the extent that he
can economically compete in the world market.
Finally, as our efforts to build up an expanding
world economy are successful, the Seaway will as-
sist us in maintaining our share of the markets of
the world — and will make it physically possible
to move the increased volume of trade to which
we must look forward.
Added to this we shall be harnessing the waters
of the International Rapids Section so that we can
utilize to the fullest extent this great source of
cheap electrical power. The results are incalcu-
lable in terms of increased wealth and added pur-
chasing power for our Nation. We have already
seen what the TVA, the Boulder Dam, and the
Grand Coulee have done for their respective areas.
The part of the United States which would be
served by the St. Lawrence power development has
been a power deficit area and also needs the stim-
ulation of low-cost power. The value of water
power has long been recognized in other countries.
The Committee members undoubtedly have seen
recent reports that water power generated in Nor-
way will be made available across the Skagerrak
for consumption in Denmark. In the Soviet Un-
ion, China, and other parts of the world, water
power development is constantly increasing. We
must make certain that the develojmient of our
power resoiu'ces keeps pace with our industrial
develoi)ment. While the deep-water navigation
through the St. Lawrence will promote interna-
tional trade, the iiower made available by this
project will serve the same end. Every bit of
power that we add to om- capacity increases our
ability to use the world's raw materials and to
provide the finished goods which are needed in
our own and other areas. The time has come
when we can no longer afford the enormous waste
of wealth that is involved in our failure to harness
the energ_y of this river.
Not least among the advantages of the St. Law-
rence project will be the benefits that it will bring
about also for our neighbor, Canada. For years
the wiitei's of the St. Lawrence have been a source
of mutual concern to our two countries. The
Canadian Government has already made important
improvements in the waterway at its expense which
the United States is entitled to and does utilize
free of charge. The cost to Canada of the Welland
Canal and certain less important improvements
in the system has been about $133,000,000. It is
proposed that Canada will be given credit for
these expenditures in arriving at the over-all divi-
sion of cost between the two countries in the con-
struction provided in the pending agreement. Fur-
thermore, the economic development of the Great
Lakes Basin in Canada is naturally of interest to
us since Canada has long been our second-best cus-
tomer and we in turn are Canada's best customer.
The stronger that Canada becomes the better it is
for us.
The Department of State realizes that there are
interests in this country that object strongly to
this program of construction. Some railroads be-
lieve that their capital investment will be preju-
diced through diversion of traflic to the Seaway.
Certain port cities entertain the same fear of loss
of traffic. Great Lakes shipping interests believe
that the entrance of ocean-going vessels into their
territory will injure them economically. Coal in-
terests allege that the_y will lose all or part of the
Canadian markets. And power interests raise the
controversial issue of public power. Other wit-
nesses will appear in favor of the St. Lawrence
MARCH 3, 1946
337
project, wlio can testify with greater authority on
these matters than I. However, there is good au-
tliority for saying that these fears are unjustified.
Tlie St. Lawrence Survey of the Department of
Commerce completed in 1941 indicates for example
that the prospective increase in freight traflic in
tlie United States over the next 15 years will be
such as to make the St. Lawrence Seaway an abso-
lute necessity to help in handling our ocean-bound
traffic. Similarly the survey indicates that many
or all of the port cities deemed to be affected will
gain new traffic as the result not only of normal
growth in the United States but of the industrial
expansion that will be stimulated through this
project.
Every technical and mechanical advance in the
history of the world has been viewed by some with
alarm. This was true of the railroad, the auto-
mobile, the airplane — of the development of each
new resource and of each section of our country.
But our country has become great, not by listening
to these fears but by utilizing every resource of
brain or nature.
Fears have also been raised by the opposition to
the St.. Lawrence project that the pending agree-
ment with Canada may not constitutionally be
acted upon by the Congress through legislation, but
must, so the argument goes, be a treaty. The De-
partment of State believes that this position is in-
correct and that the participation of the United
States in the construction of the St. Lawrence proj-
ect may legally be brought about through legisla-
tion to approve and effectuate the pending agree-
ment. In support of this contention I have filed
with the Chairman of the Subcommittee the full
legal argument to substantiate this position. The
memorandum also contains a statement of the his-
torical and legislative background of the St. Law-
rence |)roject.
Under the Constitution, Congress is given power
to regulate commerce with foreign nations and
among the several States. This clause has for over
100 years been construed by the Supreme Court to
vest in the Congress plenary powers to control
navigation and to authorize the construction by
private interests or by the Federal Government
of projects relating to the improvement and utili-
zation of navigable waters including hydroelectric
projects. Under these powers the Congress has
authorized the construction by the Federal Gov-
ernment of navigation and power projects of pro-
found significance to the economic life of the
United States such as the Tennessee Valley Au-
thority, the Boulder Dam, and the Columbia River
projects.
The Congress is not deprived of its powers to
enact legislation to authorize the construction of
projects of this nature simply because such legis-
lation is related to or is designed to effectuate an
agreement with a foreign country. In fact there
are many precedents in the history of our relations
with Canada and with other nations of the exercise
of the i^owers of Congre.ss to authorize, to approve,
or to carry out agreements with foreign countries
in the field of the delegated powers of Congress.
Appointments to Preparatory
Commission of UNESCO
ESTHER C. BRUNAUER AS
U. S. REPRESENTATIVE
[Released to the press February 18]
Assistant Secretary Benton has announced the
appointment of Esther C. Brunauer as LTnited
States Repi-esentative on the Preparatory Com-
mission of UNESCO and member of its Executive
Committee. Dr. Brimauer, foimerly an officer of
the Division of International Organization Affairs
of the Department of State, will serve in her new
capacity with the personal rank of Minister.
The Preparatory Commission of UNESCO
consists of one representative from each partici-
pating government. The principal tasks of the
Commission are to bring UNESCO into operation
when 20 governments have signed the Constitution
and to provide for immediate action on urgent
needs of educational, scientific, and cultural recon-
struction. A special technical subcommittee is
studying reconstruction needs and bringing such
needs to the attention of governments, organiza-
tions, and persons who wish to contribute through
appropriate channels.
The United States Representative participates
in meetings of the Preparatory Commission and
any subcommittees which it appoints to carry out
its functions, and also represents the United States
on the Executive Committee of the Preparatory
Commission. The meetings are held in London at
present but at a later date they may be held in
Paris where the headquarters of the I^NESCO are
to be located. The United States Representative
338
DEPARTMENT OF STATE BULLETIN
has the task of presenting to the Preparatory
Commission and its subsidiary groups the views
of tlie United States Government on questions of
policT as well as bringing to the attention of the
appropriate subcommittees and officers of the
Prejjaratory Commission Secretariat suggestions
for tlie further activities and program of
UNESCO.
Dr. Brunauer succeeds Grayson N. Kefauver,
who was ai)pointed to this post after the Confer-
ence for the establishment of UNESCO held in
London last November. Dr. Kefauver, who liad
represented the United States in the Conference
of Allied Ministers of Education in London since
April 1944, died on January 4 of this year. Dur-
ing the interim since his death, this country has
been represented in the LTNESCO Preparatory
Connnission by Donald Stone, Assistant Director
in Charge of Administrative Management, Bureau
of the Budget.
Dr. Brunauer has been closely associated with
the development of international organization in
educational, scientific, and cultural fields. She
served as technical expert on the LTnited States
Delegations to the San Francisco conference and
to the UNESCO conference in London.
HOWARD E. WILSON AS U. S. MEMBER ON
INTERNATIONAL SECRETARIAT
[Rele.Tsed to the press Febru.iry 20]
Assistant Secretary of State Benton has
announced the appointment of Dr. Howard E.
"Wilson as the principal officer designated by the
United States Government to serve on the interna-
tional secretariat of the Preparatory Commission
of UNESCO.
Dr. Wilson succeeds Dr. AValter M. Kotschnig,
Deputy Executive Secretary of the Commission,
who is I'eturning to this country to resume his
duties as Associate Chief of the Division of Inter-
national Organization Affairs of the Department
of State.
Dr. Wilson, a native of Illinois, received the
Ph.B. and M.A. degrees from tlie University of
Chicago, and the Ed.D. from Harvard (1931).
After teaching at the Stevens Point (Wis.) High
School and the University of Chicago High
School, Dr. Wilson was associated with the Grad-
uate School of Education at Harvard University,
where he was successively instructor, assistant pro-
fessor, and associate professor. He resigned from
Hai'vard in 1945 to accept the appointment as
Assistant Director of the Division of Intercourse
and Education of the Carnegie Endowment for
International Peace.
Dr. AVilson has been a leader in the field of civic
and international education. He served as a part-
time member on the staff of the Regent's inquiry on
tiie character and cost of education in New York
State. In 1939 he was a staff member on the civic
education project of the Educational Policies Com-
mission. Since 1941 he has been active in the
work for international education of the American
Council on Education, serving as chairman of its
committee on Asiatic studies in American educa-
tion and as secretary of its committee on interna-
tional education. He served as president of the
National Council for the Social Studies, and has
been a member of its board of directors since that
date. He is secretary of the Canada-United
States Committee on Education and chairman of
the Commission on Education of the National
Conference of Christians and Jews.
U. S. Government Orders
Documents Returned to
Czechoslovakia
[Released to the press February 23]
On February 11, 1946, an American military de-
tachment from the American occupation forces in
Germany entered Czechoslovakia and proceeded
to I'emove to the Amei'ican zone in Germany a
number of documents which were ft)und concealed
in a hillside south of Praha. The detachment
sought these documents becamse they were in-
formed that the documents would throw light upon
the pre-war plans of Hitler and give information
as to the conduct of the war by the Nazi Gov-
ernment.
Although this American detachment entered
Czechoslovakia with passes issued by the appro-
priate Czechoslovak liaison officer, this expedition
had not been given approval by the Czechoslovak
Government, which has protested this action. The
American Government has expressed its deep re-
gret to President Edvard Benes for this incident
and has ordered an immediate return of the docu-
ments to the Czechoslovak Government.
MARCH 3, 1946
339
Deposit and Registration
of Czechoslovak Securities
[Keleased to the press February 19 |
The Department of State has been informed
that tlie Czechoslovak Government has extended
mitil March 10, 1946 the deadline for the deposit
(if Czechoslovak currency (denominations of 20
crowns or less) and registration of Czechoslovak
bank deposits and life-insurance policies held by
residents of the United States with Czechoslovak
consular offices in the United States. The dead-
line previously announced was December 31, 1945.
The deadline for deposit and registration of
Czechoslovak securities held by residents of the
United States, previously fixed at February 28,
1!)4C., has been extended to April :>(), 1946. The
official forms requii-ed to be used in the registra-
tion of the securities together with directions for
their use nniy be obtained from Czechoslovak con-
sular offices located in New York City, Chicago,
Cleveland, Pittsburgh, San Francisco, and Wash-
ington.
Visit of Finnish Journalists
[Released to the press February 18]
Three leading Finnish journalists, chosen by
their Government to represent the Finnish press,
are in Washington after a seven-week tour of the
United States as guests of the Department of
State's Office of International Information and
Cultural Affairs.
The members of the party are: Miss Kaisu-
Mirjami Eydberg, political columnist on the Hel-
sinki daily Vapaa Sana, organ of the Democratic
Union Party; Ragnar Olander, Associate Editor
of Ilufvudtstadshladet, leading Swedish-language
daily of Helsinki; and Yrjo Anders Kaarne, for-
eign editor of Suomen Sosialidejnokraatti, organ
of the Social Democratic Party.
They were guests of members of the House of
Representatives at a luncheon on February 15, and
later in the day they were presented to President
Truman after attending a White House press con-
ference. On February 18 the group lunched with
State Department officials. Another luncheon is
planned with Washington newspaper and radio
correspondents. They also are to be honored at a
reception given for them by the Finnish Minister.
The Finnish journalists are on the last lap of a
country-wide tour. They have visited New^ York
City. Detroit's automobile factories, Chicago's
newspaper plants, large cooperatives in Dulutli
managed and conducted by Americans of Finnish
origin, Bonneville Dam, and have been gue.sts of
the large community of Americans of Finnish
ancestry in Astoria, Ore., while inspecting the
lumber industry of the northwest. They have
toured San Francisco's educational and cultural
institutions, and the film studios, aircraft plants,
and oil-producing area of Los Angeles. They
have seen the Grand Canyon, the Indian reserva-
tions of the southwest, New Orleans, the power
system of the Tennessee Valley Authority, and
have watched the growing and processing of to-
bacco. Thej' have attended meetings of agricul-
tural associations in North Carolina and have
studied textile production in New England and in
the south.
SeA'eral other groups of European journalists
have already toured this country under Govern-
ment auspices. Such tours are encouraged by the
Office of International Information and Cultural
Affaii-s to make it possible for foreign newsmen
to observe America's scientific, economic, and cul-
tural achievements in all sections of the country,
as well as American handling of immediate prob-
lems of reconversion and demobilization.
Discussions of Relations
With Austria
[Released to the press February 18]
The Secretary of State received on February 18
Dr. Lndwig Kleinwaechter, the representative of
the Austrian Government, who has just arrived in
the United States.
The Secretary and Dr. Kleinwaechter discussed
various questions of interest involving the rela-
tionships between the United States and Austria.
The Secretary assured Dr. Kleinwaechter that he
would be glad to assist in any way possible the
restoration of Austrian independence.
Dr. Kleinwaechter expressed appreciation for
the proposal which had been made by the United
States to the Governments of Great Britain,
France, and the Soviet Union regarding the con-
clusion of a tieaty by the four powers with the
Austrian Government to determine Austria's
status as an independent state.
340
DEPARTMENT OF STATE BULLETIN
Polish-Soviet Treaties of Friendship and Alliance
The Department was informed by the Ameiican Embassy at Warsan^ of the e.rchange of ratifica-
tions in Warsam on Septemher '20, 19.!fO, of the agreement regarding friendship, miituaJ assistance and
post-war cooperation between the Union of Soviet Socialist Republics and the Polish Republic signed
April 21, lOJfS. An English translation of the te.rt and the ratifying document which appeared in
Dzieimik Ustaw {No. 4'i) of October 31, 191^5 follows.
AGREEMENT
regarding friendship, mutual assistance and
post-war cooperation between the USSR and
the Polish Republic.
On Behalf of the Polish Republic the President of the
National Council of the Homeland iinnounces that
On the twenty-first of April 1945, an agreement regarding
friendship, mutual assistance and post-war cooperation
was signed in Moscow between the Government of the
Polish Republic and the Government of the USSR reading
as follows :
AGREEMENT
regarding friendship, mutual assistance and post-war
cooperation between the USSR and the Polish Re-
public.
The President of the Niitional Council of the Homeland
and tlie Presidium of the Supreme Council of the Union
of Socialist Soviet Republics moved by an unshaken deter-
mination to bring, in a common effort, the war with the
German aggressors to a complete and final victory ;
wishing to consolidate the fundamental change in the
history of the Polish-Soviet relations in the direction of
friendly cooperation, which has taken place in course of
a common fight against the German imperialism ;
trusting that a further consolidation of good neighbourly
relations and friendship between Poland and her direct
neighbour — the USSR — is vital to the interests of the Polish
and Soviet peoples ;
confident that friendship and close cooperation between
the Polish people and the Soviet people will serve the cause
of successful economic development of both countries dur-
ing the war as well as after the war ;
wishing to support after the w.ir by all possible means
the cause of peace and security of peoples;
have resolved to conclude this agreement and have ap-
pointed as their plenipotentiaries
the President of the National Council of the Home-
land— Edward Osobka-Mobawski, the President of the
Council of Ministers and the Minister of Foreign Affairs
of the I'olish Republic,
The Presidium of the Supreme Council of the Union of
Socialist Soviet Republics — Joseph Vissarionovitch
Stalin, Chairman of the Council of People's Commissars
of the USSR
who, after exchange of full powers which were recog-
nized as being in order and drawn up in due form, have
agreed as follows :
Article 1.
The High Contracting Parties jointly with all United
Nations will continue the fight against Germany until final
victory. In that fight the High Contracting Parties under-
take to give one another mutual military and other as-
sistance using all the means at their disposal.
Article 2.
The High Contracting Parties, in a firm belief that in
the interest of security and successful development of the
Polish and Soviet peoples it is necessary to preserve and
to strengthen lasting and unshaken friendship during
the war as well as after the war, will strengthen the
friendly cooperation between the two countries in accord-
ance with the principles of mutual respect for their
independence and sovereignty and non-interference in
the internal affairs of the other government.
Article 3.
The High Contracting Parties further undertake that
even after the end of the present war they will jointly use
all the means at their disposal in order to eliminate every
possible menace of a new aggression on the part of Ger-
many or on the part of any other government what-
soever which would be directly or in any other manner
allied with Germany.
For this purpose the High Contracting Parties will,
in a spirit of most sincere collaboration, take part in all
international activities aiming at ensuring peace and
security of peoples and will contribute their full share to
the cau.se of realization of these high ideals.
The High Contracting Parties will execute this agree-
ment in compliance with the international principles in
the establishment of which both Contracting Parties took
part.
Article 4.
If one of the High Contracting Parties lUuing the post-
war period should become involved in war operations
against Germany in case she should resume aggressive
policy or against any other government whatsoever which
would be allied with Germany directly or in any other
form in such a war the other High Contracting Party
will immediately extend to the other contracting party
which is involved in military operations military and other
support with all the means at its disposal.
Article 5.
The High Contracting I'arties undertake not to sign
without mutual consent an armistice or a peace treaty
with the hitlerite government or any other authority in
(iermany which menaces or may menace the independence,
MARCH 3, 1946
341
tei-ritorial iiitegi-ily or secui-ity of either of the two High
Contracting Parties.
Article 6.
Each of the Higli Contracting Parties undertakes not to
enter into any alliance or to talie part in any coalition
directed against the other High Contracting Party.
Article 7.
The High Contracting Parties will cooperate in a spirit
of friendship al.so after the end of the present war for
the purpose of developing and strengtliMiing the economic
and cultural relations between the two countries and will
give mutual assistance in the economic reconstruction of
the two countries.
Article 8.
This agreement comes into force from the moment of
signing and is liable to ratification within the shortest pos-
sible period. Exchange of ratifying documents will take
place in Warsaw as soon as possible.
This agreement will remain in force for 20 years after
the moment of signing.
If one of the High Contracting Parties does not make
a statement 12 months before the expiration of the 20
years" period to the effect that it wishes to give notice, this
agreement will remain in force for a further period of five
years and so on until one of the High Contracting Parties
makes a statement in writing 12 mouths before the expira-
tion of a successive 5 year.s' period to the effect that it
intends to give notice of the agreement.
In witness whereof the mandatories liave signed this
agreement and have apposed their seals thereto.
Drawn up in Moscow on April 21, 1945, in duplicate, each
copy in Polish and in Russian, both texts being equally
binding.
By authority of the President of the National Council
of the Homeland
I..S. ( — ) OSOBKA-JIORAWSKI
By authority of the Presidium of the Supreme Council
of the USSR
L.8. ( — ) J. Stalin
After consideration this agreement has been recognized
equitable in its whole as well as in individual provisions
contained therein ; it is, therefore, announced that it has
been accepted, ratified and approved and will be strictly
complied with.
In witness whereof this Act has been issued with the
seal of the Polish Repuljlic duly apposed thereto.
Warsaw, September 19, J'J-',5.
President of the Natioual Council of the Homeland
BOI.BSIAW BiEnsUT
President of the Council of Ministers
EnWAKI) OSOBRA-MORAWSKI
Vice Minister of Foreign Affairs
p.p. Z. MoDZEIEWSKI
Item 269
ANNOUNCEME^T OF THE GOVERNMENT
Dated September 21, 1945.
regarding exchange of ratifying documents in respect of
the Agreement regarding friendship, mutual assistance
and post-war cooperation between the Polish Republic
and the USSR, which was signed in Moscow on April 21,
l!)4r,.
It is hereby announced that, according to Art. S of the
Agreement regarding friendsliip, nuitual assistance and
post-war cooperation b.'tween the Polish Republic and
the Union of Socialist Soviet Republics signed in Moscow
on April 21, 194.5, exchange of ratifying documents in
respect of the above agreement took place in Warsaw on
September 20, 1945.
p.p. Minister of Foreign Affairs
Z. MODZELEWSKI
The American Embassy at Moscow has informed the Department that the exchange of ratifica-
tion--: of the treaty of August 16, IQJfS hetween the Union of Soviet Socialist Republics and Poland on
the Soviet-Polish state frontier took place in Warsaiv on February 5, HHO. The texts of the treaty
and an agreement and accompanying protocol on compensation for damages caused by German occu-
pation, as printed in the Moscow Xews of August 18, 194-5, follow:
TREATY BETWEEN THE UNION OF SOVIET SOCIALIST REPUBLICS AND THE POLISH
REPUBLIC ON THE SOVIET-POLISH STATE FRONTIER
The Presidium of the Supreme Soviet of the Union of
Soviet Socialist Republics and the President of the Na-
tional Council of the Polish Republic, desiring to settle
the problem of tlie state frontier between the Soviet
Union and Poland in the spirit of friendship and accord,
have decided to conclude for this purpose the present
Treaty and have appointed their Plenipotentiaries:
The Presidium of the Supreme Soviet of the Union of
Soviet Socialist Republics — Vyacheslav Mikhailovich
MoLOTOv, Vice Chairman of tlie Council of PeoiJle's Com-
missars and People's Commissar of Foreign Affairs of
the Union of Soviet Socialist Republics;
The President of the National Council of the Polish
Republic — Eduaeo Osubka-Morawski, President of the
Council of Ministers of the Polish Republic,
who, having exchanged their credentials, found in due
form and good order, liave agreed on the following :
Article 1
In accordance with the decision of the Crimea Confer-
ence, to establish the state frontier between the Union of
SOVIET-POLISH STATE BOUli|NiJI¥
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Soviet Socliilist Republics and tlie Polisli Republic along
the "Cui'zon Line,"' ileviuting from tlie line in Poland's
favor in some districts from five to eight kilometers ac-
cording to the map in scale 1:500,000 annexed hereto,
conceding additionally to Poland:
a) territor.v situated east of the "Curzon Line" up to
the Western Bug River and Solokia River (south of the
town of Kryldw) with a deviation in Poland's favor
(if up III thirty kilometers at the niaxinunn :
342
MARCH 3, 1946
343
b) part (if the territory of the Bjalowiez forest in
the sector Nieuiirow-Jalowka, situated east of the "Ciir-
zon Line," including Niemirow, Gainowka, Bjalowiez and
Jalowka, with a deviation in Poland's favor of up to
seventeen kilometers at the maxinuim.
Article 2
In accordanie with the provisions of Article 1, the
state frontier between the Union of Soviet Socialist Re-
publics and the I'olish Republic passes along the following
line;
from the point situated approximately 0.0 kilometers
southwest of the source of the San River northeastwards
to the source of the San River and then down midstream
of the San River up to the point situated south of the
inhabited locality Solina,
then east of Przemyszl, west of Rawa Russka up to
the Solokia River, then along the Solokia River and the
Western Bug River in the direction of Niemirow-Jalowka,
leaving on the Polish side part of the territory of the
Bjalowiez forest mentioned in Article 1, and thence to
the meeting point of the frontiers of the Lithuanian
Soviet Socialist Republic, the Polish Republic and East
Prussia, leaving Grodno on the USSR side.
The demarcation of the frontier indicated in the pres-
ent article will be carried out on the spot by a Mixed
Soviet-Polish Commission, whose seat will be in Warsaw
and which will begin its work not later than 15 days after
the date of exchange of ratification instruments.
Article 3
Pending final decision on territorial questions at the
peace settlement, part of the Soviet-Polish frontier ad-
joining the Baltic Sea will pass, in conformity with the
decision of the Berlin Conference, along the line leading
from the point situated on the eastern shore of Danzig
Bay and indicated on the map annexed hereto, eastward
to the north of Braun.sberg-Goldap up to the point where
this line meets the frontier line described in Article 2
of the present Treaty.
Article 4
The present Treaty is subject to ratification, which must
take place at the earliest possible date. The Treaty
comes into force upon the exchange of ratification in-
struments, which will take place in Warsaw.
Done in Moscow, August 16, 194.5, In two copies, each
in the Russian and Polish languages, both texts having
equal force.
On Authorization of the
Presidium of the Su-
preme Soviet of the
Union of Soviet Social-
ist Republics
V. iNIOLOTOV
On Authorization of the
President of the Na-
tional Council of the
Polish Republic
E. OSUBKA-MORAWSKT
AGREEMENT BETWEEN THE GOVERNMENT OF THE UNION OF SOVIET SOCIALIST REPUB-
LICS AND THE PROVISIONAL GOVERNMENT OF NATIONAL UNITY OF THE POLISH
REPUBLIC ON COMPENSATION FOR DAMAGES CAUSED BY GERMAN OCCUPATION
The Government of the Union of Soviet Socialist
Republics and the Provisional Polish Government of
National Unity,
considering that the invasion by the German troops of
territories of the Soviet Union and Poland and the tem-
porary occupation of Poland and of a considerable part
of the territory of the Soviet Union by German troops
caused tremendous damage to the Soviet Union and the
Poli.sh Republic, destruction of many towns, industrial
enterprises, railways and whole branches of national
economy, the elimination of who.se consequences requires
prolonged and strenuous efforts of the Soviet and Polish
peoples,
guided by the desire to render each other every assist-
ance in carrying out the tasks connected with the elimi-
nation of the above grave consequences of German occu-
pation,
have agreed on the following :
Article 1
In conformity with its statement at the Berlin Confer-
ence, the Soviet Government relinquishes in Poland's
favor all claims to German property and other assets and
also to shares of German industrial and transport enter-
prises throughout the territory of Poland, including that
part of the territory of Germany which passes to Poland.
Article 2
In connection with the decisions of the Berlin Con-
ference on the procedure governing the satisfaction of
the reparation claims of Poland, the Soviet Government
agrees to concede to Poland from its share of the repara-
tions which are to be delivered to the Soviet Union :
a) 15% of all reparation deliveries from the Soviet
zone of occupation in Germany which will be effected in
the period after the Berlin Conference ;
6) 159p of such usable and complete industrial capital
equipment which, as established by the Berlin Confer-
ence, must be received by the Soviet Union from the
western zones of occupation of Germany, delivery of this
equipment to Poland to be effected in exchange for other
goods from Poland ;
c) 15% of such usable and complete industrial capital
equipment which is to be delivered to the Soviet Union
from the western zones without payment or compensa-
tion in any way.
In its turn the Polish Government undertakes, begin-
344
DEPARTMENT OF STATE BULLETIN
ning with 194G, to deliver to the Soviet Union annually,
throughout the entire period of the occupation of Ger-
many, coal at a special agreed price : eight million tons
during the first year of deliveries, 13 million tons an-
ually in the next four years, and 12 million tons in each
of the subsequent years of the occupation of Germany.
Article 3
The present Agreement comes Into force immediately
upon being signed.
The present Agreement is done in M.)scow, August 16
1045, in two copies, each in the Russian and the Polish
languages, both texts having equal force.
On Authorization of the
Government of the Union
of Soviet Socialist Re-
publics
V. Moixwov
On Aiituorization of the
ProvisiiHial Polish Gov-
ernment of X a t i o u a 1
Unity
E. OSUIIKA-MORAWSKI
PROTOCOL TO AGREEMENT BETWEEN THE GOVERNMENT OF THE UNION OF SOVIET SOCIALIST RE-
PUBLICS AND THE PROVISIONAL POLISH GOVERNMENT OF NATIONAL UNITY ON COMPENSATION
FOR DAMAGES CAUSED BY GERMAN OCCUPATION
In signing the Agreement Between the Government of
the Union of Soviet Socialist Republics and the Provisional
Polish Government of National Unity on Compensation
for Damages Caused by German Occupation, the signa-
tories have agreed on the following:
for the precise definition of the kind, terms and methods
of deliveries of reparations due to Poland in conformity
with Article 2, paragraphs "«" '"5" and "c" of the above
Agreement, a Mixed Soviet-Polish Commission is to be
set up consisting of six members, three members from
each side.
The Commission will be presided over by a representa-
tive from each side in turn upon mutual agreement.
Done on August 16, 1945, in Moscow, in two copies, each
languages, both texts being
in the Russian and the Polisli
authentic.
On Authorization of the
Government of the
Union of Soviet Social-
ist Republics
V. MOLOTOV
On Authorization of the
Provisional Polish Gov-
ernment of National
Unity
E. OSUBK.\-MORAWSKI
GERMAN PROPAGANDA— Co/i^/fiHcrf from imije 316
B. Basic Postulates for use exclusively outside the
United States of America.
1. Roosevelt is aiming at world domination.
Roosevelt wants to subject Latin America to
Yankee imperialism and to inherit the British
Empire. The assertion of complete guardianship
of Central and South America (Conference at
Rio), his military bases policy, his footholds in
Europe (Iceland, North Ireland) and Africa, the
systematic encouragement of Australi^xn-New
Zealand efforts at rapprochement with the
U. S. A. and Canada, are milestones on this path.
The trips of Churchill to North America to plead
for help encourage his efforts at world domina-
tion.
2. Roosevelt, the sick man of the White House.
Roosevelt is mentally abnormal. As a result of
the paralysis lie underwent, he suffers from com-
plexes, a kind of persecution complex, delusions of
grandeur, dreams of world domination, and be-
lieves himself to be a Messiah.
3. The population of North America is still not
a unified nation. Citizens of all races and nation-
alities, among them a high percentage of Negroes,
mulattoes and Jews, prevent the formation of a
settled national purpose (WiUensbihhinff) .
4. The domestic social structure of North
America cannot endure severe trials.
North American cajDitalists fear not only mili-
tary defeats, but above all internal unrest and
Communism because of military reverses. The
jieople, which did not want this War, will awake
and demand a reckoning. It will turn its anger
against Roosevelt and the warmongers, especially
the Jews.
.5. North America is the land of bluff. The pre-
sumptuous behavior of the North American Spe-
cial Representatives (the gangster Earle, Bullit
[sic], Donovan, Biddle) tried to give the impres-
sion of invincible strength on the part of North
America. Part of Europe and South America
have fallen victim to this propaganda of bluff,
while in the Pacific Britain and North America
have been sacrificed [/if. fran.s. the sacrifices] to
this Rooseveltian bluff'. It will not be otherwise
in the European-African Hemisphere.
6. There will be no American century.
North America has no creative cultural powers
at its disposal. She has replaced culture with a
soulless civilization. Rbo-levelt's plans for im-
proving the world are already compromised by the
miserable repudiation of Wilson. Roosevelt has
forfeited for all time any right to lead the nations
to a better future because of liis alliance witli
Bolshevism.
MARCH 3, 1946
345
Direct Telegraphic Service
With Embassy in Paris
(Released to the press February 20]
The longest direct line in the history of com-
mercial telegraphic connnnnication was opened
on February 20 between the State Department and
the American Embassy in Paris. The new service
marks the inauguration of the first direct com-
mercial communication with the continent of
Europe \ia cable. It makes possible the instan-
taneous receipt in the Paris Embassy of messages
sent from the State Department, and thus enables
officials of the two offices to engage in two-way
teletype conversations.
Formerly, London was the only trans- Atlantic
point witli which direct communication was possi-
ble. Installation of the direct link with Paris
eliminates two intennediate relays in New York
and London. Communication with Paris and
other jioints on the Continent is thereby greatly
speeded.
To inaugurate the new service, messages were
exchanged between Assistant Secretary of State
Donald Russell and Ambassador Jefferson Caffery.
Mr. Russell's teletype message stated:
This message inaugurates direct telegraphic
service between the De]iartment and your Embassy
evidencing another forward step in our efforts to
improve the speed and efficiency of communica-
tions with the Foreign Service.
To this, Ambassador Caffery replied :
I am pleased to receive your message inaugurat-
ing the new telegraphic circuit. I feel as you do
that this is an additional constructive tool to sujj-
plement our efforts to achieve more rapid and
direct counnunication between the Department
and the field.
Education Advisory Group
to Japan
[Released to the press February 18]
Assistant Secretary Benton, in response to a
request by the War Department, has invited a
number of distinguished American educators to
serve as an advisory group on education to Japan.
The advisory group was originally proposed by
the Supreme Commander for the Allied Powers
in the Pacific, General Douglas MacArthur, who
requested the assistance of competent authorities
in various fields of education to advise his staff and,
through him, the Japanese Ministry of Education
on technical matters relating to the educational
Ijrogram to be followed under the Allied
occupation.
The group will also make recommendations to
the Supreme Commander on the most effective
measures to be taken in the process of demilitariza-
tion and reorientation of the Japanese educational
system. It is e.xpected that the group will depart
about February 22 from San Francisco and spend
approximately one month in Japan.
In agreement with the War Department and
General MacArthur, the Department has named
George D. Stoddard chairman of the group. Dr.
Stoddard is at present State Commissioner of
Education for New York and President-elect of
the University of Illinois.
The selection of the other members of the group
was based on a list of 28 names which was proposed
by General MacArthur and way announced in the
press on January 4. Of these 28 persons, all of
whom were invited to serve as members, the fol-
lowing accepted invitations :
WiLsox M. CoMPTON, President, State College
of Washington.
George W. Diemer, President, Central Missouri
State Teachers College.
Frank N. Freeman, Dean, School of Educa-
tion, University of California.
Virginia Gildersleeve, Dean, Barnard College.
WiLLARD E. GivENS, Executive Secretary, Na-
tional Education Association.
Mrs. Mildred McAfee Horton, President,
Wellesley College.
Lt. Col. T. V. Smith, Professor of Philosophy,
University of Chicago.
David H. Stevens, Division of Humanities,
Rockefeller Foundation.
Alexander J. Stoddard, Superintendent of
Schools. Philadelphia.
William C. Trow, Professor of Educational
Psychology, University of Michigan.
In order to complete the group, the following
persons were invited by the Department to par-
ticipate ill the group and have consented to do so :
Harold Benjamin, Director, Division of Inter-
national Education, Office of Education.
346
DEPARTMENT OF STATE BULLETIN
Leon CARNOvsKr, Associate Dean, Graduate
Library School, University of Chicago.
George S. Counts, Professor of Education,
Columbia University and a Vice President,
American Federation of Teachers.
KoY J. Deferr.\ri, Secretary-General, Catholic
University.
Kermit Ebi', Director of Research and Educa-
tion, Congress of Industrial Organizations.
Ernest R. Hilgard, Head of Department of
Psychology, Stanford University.
MsGR. Frederick G. Hochwalt, National Cath-
olic Education Association and Chairman,
Education Section, National Catholic Wel-
fare Conference.
Charles Iglehart, formerly Professor, Union
Theological Seminary and Methodist Epis-
copal missionary to Japan, now adviser to
the Civil Information and Education Sec-
tion, SCAP.
Charles S. Johnson, Professor of Sociology,
Fisk University.
Isaac L. Kandel, Professor of Comparative
Education, Columbia University.
Charles H. McCloy, Professor of Physical
Education, University of Iowa.
E. B. Norton, State Superintendent of Educa-
tion, Alabama.
Mrs. Pearl Wannamaker, State Superintend-
ent of Public Instruction, Washington.
Miss Emily Woodward, State Department of
Education, Georgia.
Harold Benjamin will represent the Office of
Education as Government adviser to the group
replacing the Commissioner of Education, John
W. Studebaker, who is unable to go.
Gordon T. Bowles of Area Division V (Occu-
pied Areas) of the Office of International Infor-
mation and Cultural Affairs of the State Depart-
ment will accompany the group as representative
of the Department of State and Far Eastern
Adviser. Paul P. Stewart, also of the same Office
in the State Department, will serve as Secretary-
General.
Col. John N. Andrews will accompany the group
as Military liaison. Colonel Andrews has been
with Selective Service.
In making its selections, the Department has
been in close consultation with the Office of Edu-
cation of the Federal Security Agency and has also
sought the advice of representatives of nationally
recognized educational associations as well as of
individuals prominent in the field of education,
including the chairman of the group. As finally
compiled, the list includes authorities from various
parts of the country in all levels of education from
the nursery school to the university. Various
educational organizations, learned societies, and
foundations are represented. Specialists are
included in such fields as adult, rural, and women's
education ; the use of libraries ; physical and health
education; educational techniques; curricula and
administration; teacher training; educational
psychology and comparative education.
Occupation Orders for Japanese
Fishing and Aquatic Industries
[Released to the press February 18]
The following policy conclusions with respect
to the treatment of Japanese fishing and aquatic
industries during the occupation period have been
approved by the State- War-Navy Coordinating
Connnittee. They have been incorporated in a
Directive from the Joint Chiefs of Staff to the
Supreme Commander for the Allied Powers, Gen-
eral of the Armies • Douglas MacArthur, dated
November 19, 1945. They are released as a fur-
ther step-in the State Department program to re-
lease to the public, as rapidly as security conditions
warrant, full information concerning the Japa-
nese occupation policies which have been adopted
by the United States on behalf of the Allies :
''During the period of occupation, the Supreme
Connnander should be guided, subject to military
considerations, by the following general princi-
ples :
"ff. In order to meet domestic consumption re-
quirements, Supreme Commander should :
(1) Insist that appropriate available vessels,
facilities, gear, equipment and supplies in
Japanese hands be put to use;
(2) Take such steps as he nuiy deem practical
and necessary to provide sufficient fuel for
allocation to fishing boats;
(3) Require the Japanese Government to re-
habilitate the production facilities of the fish-
ing, fish fertilizer and seafood processing
industries, and facilities for distribution of
their products ; and
MARCH 3, 1946
347
(4) Furnish such other assistance, subject to
general policies governing aid to Japanese
industry, as he deems necessary.
"&. The coastal fisheries and fish cultui'e should
be utilized as the primary sources for domestic
consumption. To the extent that fish culture and
coastal fisheries are unable to meet the minimum
domestic requirements, deep sea fisheries and other
fisheries in water open to Japanese operation may
be utilized where security and political considera-
tions permit. Deep sea fishing in areas near
United States territory or near United States
island responsibilities should not be authorized.
Japanese fishing should nf)t be permitted near
areas under Allied jurisdiction without prior per-
mission from the country concerned. These pro-
hibitions should continue until international
agreements are negotiated permitting Japanese
fishing in these areas.
''(■. In order to determine (1) the effect on Japa-
nese food supply of restrictive measures enfoiced
for security or other reasons, and (2) the extent
to which the United States and other nations
should be permitted to exploit fisheries previously
exploited by the Japanese, the Supreme Com-
mander should immediately obtain from the Japa-
nese Government available surveys and other data
concerning the resources of all Pacific fishing areas
previously exploited by the Japanese.
'V/. Japanese fishing operations should conform
strictly to :
(1) The provisions of agreements relating to
whaling to which the United States is a party ;
(2) The provisions of other agreements relat-
ing to conservation to which the United
States is a party ;
(3) The policies or rules governing specific
fisheries announced by the United States, or
by other governments in conformity with
policies announced by the United States with
respect to coastal fisheries;
(4) The Japanese national and local regula-
tions for the conservation of fisheries.
"e. Sucli fishery products may be exported as
can be produced by vessels, facilities, gear, equip-
ment and supplies not suitable for or convertible
to use in providing for domestic consumption, and
which are needed (1) to supply United Nations
needs for animal proteins and oils or (2) to secure
foreign exchange for essential imports.
'■/. In the establishment of local security regu-
lations consideration should be given to ensuring
the maximum production of seafood products
consistent with security requirements."
Fifth UNRRA
Quarterly Report
PRESIDENT'S LETTER OF TRANSMITTAL
[Released tu the press by the White House February S]
To the Congress of the United States of America:
I am transmitting herewith the fifth quarterly
report on operations of UNRRA and on expendi-
tures of funds appropriated by the Congress under
the Act of March 28, 1944.
With complete victory over the Axis powers,
UNRRA has been able U) expand its operations in
relieving tlie ravages of war. The improvement
in shi])ping and the release of supplies have made
it iK)ssible for UNRRA to ship sharjaly increased
quantities of relief goods to the liberated peoples.
Tlie recent action of the Congress in approving
additional funds for the work of UNRRA has
assured a continuing flow of needed supplies.
Harri' S. Truman.
The White House,
Fehntanj S, 19^6.
Whaling Agreement and
Protocols
Netherlands
The British Foreign Office has notified the
American Embassy in London of the accession
of the Netherlands Government on October 29,
1945 to the international agreement for the regu-
lation of whaling signed in London on June 8,
1937,^ and of its accession on December 7, 1945 to
the 1938 protocol amending that agreement.-
Denmark
The Foreign Office also notified the Embassy
of the accession on November 10, 1945 of the Dan-
ish Government to the 1944 supplementary pro-
tocol on the international regulation of whaling.
' Treaty Series 93.3.
- Treaty Series 944.
348
DEPARTMENT OF STATE BULLETIN
Agricultural Mission To Visit
Near East
[Released to the press Feliniary 19]
The United States Government, through its
Deiiiirtnients of State and Agricidtiire, is planning
to send an Agricultural Mission to certain coun-
tries in the Near East primarily interested in
agi'icultural development.
This Mission is being arranged as a result of
requests received by the United States Govern-
ment over the last two years from several Near
Eastern Governments and private institutions for
agricultural advice and assistance. Plans for the
Mission were made in accordance with the United
States Government's policy of cultural and tech-
nical collaboration with foreign countries. It is
understood that any studies and final recommenda-
tions made by the Mission would represent as far
as possible a cooperative effort between its mem-
bers, local government officials, and interested
private organizations.
The primary purpose of the Mission is to survey
the agricultural situation in conjunction with local
authorities in order to indicate possibilities of
long-term developmental projects which might be
undertaken by Near Eastern Governments inde-
pendently or in collaboration with the United
States Government. The cooperation of private
American and local institutions would also be
encouraged.
The secondary purpose is to share with govern-
ments and private organizations American agri-
cultural experience and to extend advice pertinent
to the regions' needs when requested.
Members of the Mission are Dr. Franklin Stew-
art Harris, president of Utah State Agricultural
College, Logan, Utah, agronomist and expert on
irrigation and agricultural education; Dr. Robert
Earle Buchanan, director of Iowa State's agricul-
tui'al experiment station and dean of Iowa State
College of Agriculture and Mechanic Arts, Ames,
Iowa ; and Dr. Afif Tannous, rural sociologist,
member of the De])artment of Agriculture's Office
of Foreign Agricultural Relations.
The Mission is jirepared to spend about four and
a half months in the Near East, arriving in Leba-
non late in February.
' Ex. Or. 9698 (11 Federal Register 1809).
Privileges and Exemptions for
International Organizations
[Released to the press February 20]
The International Organizations Immunities
Act, approved December 29, 1945 (Public Law
291, 79th Cong.) jjrovides that certain privileges,
exemptions, and immunities shall be extended to
such public international organizations and to
their officers and employees as shall have been
designated by the President through appropriate
Executive order as being entitled thereto. By an
Executive order of February 19, 1916,^ the Presi-
dent designated the following organizations as
being entitled to the privileges provided in the
act of December 29, 1945 :
Food and Agriculture Organization; Interna-
tional Labor Organization; Pan American Union;
United Nations; United Nations Relief and Re-
habilitation Administration.
The above-mentioned Executive order desig-
nates the Secretary of State as the officer to receive
applications, and to require such information as
he may deem necessaiy from those international
organizations which apply to receive the privileges
conferred hy the act of December 29, 1945, and to
prepare I'ecommendations to the President as to
whether the applicant organizations are envisaged
by the aforesaid act and should be so designated by
Executive order.
A public international organization, which de-
sires to be considered as entitled to the privileges
conferred by the aforesaid act, should address an
application to the Honorable the Secretary of
State, Washington, D. C. Each applicant organ-
ization should be able to satisfy the following
requirements :
1. The applicant organization, and its officers
and employees, must be doing sufficient business in
the United States to warrait granting them the
privileges of the legislation ; and their activities
must be such as reasonably to require the said
privileges. In general, this will mean that the
organization must have an office and staff located
within the United States.
2. The Government of the United States nuist
be a participating member in the applicant organ-
ization.
3. The participation of the Government of the
MARCH 3, 1946
349
United States must be pursuant to a treaty or
under the authority of an act of Congress author-
izinfi: sudi participation or making an appropria-
tion for sucii participation.
4. The applicant organization must be composed
principiilly of governments, as distinguished from
jirivate organizations, as members.
5. The applicant organization must not be
sclieiluled for liquidation in the innncdiate future.
Eacii applicant organization should supply such
information as might enable the Secretary of State
to determine whether the organization satisfies
the above-mentioned requirements. Data regard-
ing the method and date of its establishment, its
membership and functions, principal officers, num-
ber of employees, location of offices, and any other
pertinent information should accompany the ap-
plication.
Visit of Argentine Architect
[Releaspcl to the press February 20]
Dr. Horacio Moyano Navarro, professor of ar-
chitecture at the National University of Tucu-
man in Argentina, has arrived in the United
States as a guest of the Department of State.
After a short stay in Washington he will lecture
in English on tlie general theory and history of
architecture, on architecture in Latin America,
and on various aspects of Argentine culture.
Through his woi'k at Columbia where he studied
under A. D. F. Hamlin and Talbot Hamlin from
1024 to 192!), Dr. Moyano is already widely fa-
miliar with the history and theory of architecture
in the United States. He has long been a student
of American housing and city planning in Cali-
fornia and the Southwest. His purpose at this
time, however, is to study the university cities
and college campuses of this country. In plan-
ning a centralized arrangement for its new build-
ings— a project which may take 50 years to com-
plete— the University of Tucuman wishes to em-
body the best elements of American design. Such
a unified group, when fully carried out, will be
the first oi its kind in Argentina. The different
faculties, now isolated from each other in various
parts of the city, will then form one cultural unit.
Engineers and philosophers, tlirough living side
by side, may be expected to become men of wider
culture.
As an architect Dr. Moyano's chief interest,
apart fi'om his present mission, is in housing for
people of limited means. Financially and archi-
tecturally speaking, tlie problems involved have
not been faced as yet in Argentina. Housing units
are for the most part too expensive and hence
not accessible to the majority of persons of small
incomes. AVith regard to style, Dr. Moyano be-
lieves the strongest influence at work in Argen-
tina now is that of the United States. Before
the war this was not the case. French, German,
and Austrian influences, introduced b^' the archi-
tectural magtizines from those countries, were
then the most i^owerful. With the war the im-
portation of these publications came to an end.
Whether from this or from other causes, a re-
action against le Corbusier and Gropius has now
set in. Argentine architects, though inclined to
retain the best features of contemporary interior
design, are tired of the modern facades. Possibly
influenced by practice in the United States, they
are turning to classical design, especially in its
Georgian phase of red bi-ick with white trim.
Visit of Argentine Artist
[Released to the press February 21J
Seiior Hector Basaldua, noted Argentine
painter and stage designer, has arrived in this
country to study American stage production in
its technical and artistic asj^ects. As scenic direc-
tor since 1933 of the Teatro Colon at Buenos Aires,
Sefior Basaldua, by the quality of his designs, has
placed that institution in the front rank among
musical theaters of the world. The more than 50
productions for whicli he has designed the set-
tings and costumes range from the oldest to the
newest masterpieces of opera and ballet, from
Monteverde, Rameau, Pergolese, and Cimarosa to
Richard Strauss, Debussy, and Ravel; and reveal
on the part of both scenic director and of the
Argentine public a degree of informed taste un-
surpassed— perhaps unrivaled — in this hemi-
sphere. Sefior Basaldua's designs for all these
productions are both scholarly and original. His
designs for the /Sombrero de Tres Picas, for ex-
ample, show a consummate knowledge of theatri-
cal style together with a complete independence
of the designs which Picasso made for the original
performance of Manuel de Falla's ballet.
350
Liquidation Offices Open
in Canada and Atlantic Areas
[Released to the press by Foreigu Liquiilation Commissioner
February 20]
Foreign Liquidation Commissioner Thomas B.
McCabe announced on February 20 the opening
of strategic field offices under Deputy Field Com-
missioners to facilitate disposal operations in
Canada and the North Atlantic Area.
John W. Clarke, Chicago investment Itanker,
now serving as Field Commissioner for Canada
and the North Atlantic Area, has established the
main office in Washington, with field offices set up
at: Ottawa, Canada; St. John's, Newfoundland;
Eeykjavik, Iceland; and Godtliaab, Greenland.
The geographic area served includes Canada,
Newfoundland, Labrador, Iceland, Greenland,
Bermuda, and the Bahamas.
The bulk of the surpluses in these areas are in
Canada, McCabe pointed out. Lt. Col. W. Gould
Jones, of Washington, D.C., Deputy Field Com-
mis.sioner for Canada, has set up operations in
Ottawa.
Prior to the organization of OFLC, McCabe
explained, officials of the LTnited States Army,
working with the Permanent Joint Board on
Defense, disposed of fixed installations, movable
goods, and other United States property, for
$77,000,000 in U.S. dollars. Colonel Jones will
continue these disposal activities.
diaries B. Jones of Hinton, W. Va., former
Chief Engineer with the Corps of Engineers for
the Canol project, will be responsible for the dis-
posal of Canol, under Field Commissioner Clarke.
Mr. Jones served from 1930 to 1942 as Principal
Civil Engineer, U.S. Engineer Department for the
Honolulu District.
Army Air Force installations located at Gander,
Newfoundland, and Goose Bay, Labrador, which
were established as relay stations for aircraft
flying the North Atlantic route to England and
Ireland, comprise the bulk of surplus propertj"^ in
this area.
Col. George H. Foster, Acting Deputy Field
Commissioner for Labrador and Newfoundland,
has established an office in St. John's, Newfound-
land. Colonel Foster was formerly a AVashington
tax lawyer and Special Assistant to the Attorney
General.
'49 Stat. (pt. 2) 2741.
DEPARTMENT OF STATE BULLETIN
Valdo F. Wilson, of New York, N. Y., Deputy
Field Commissioner for Greenland and Iceland,
with offices in Reykjavik, Iceland, and Godtliaab,
Greenland, is now commuting between these two
cities making arrangements for the disposal of sur-
plus property. Wilson, an investment banker,-
served from 1941 to 1945 with the 0PM. He was
Assistant to the Director of Contract Distribution,
War Production Board.
Handling of Mail on Foreign
Policy
The bulk of the mail addressed to the President
or the State Department having to do with United
States foreign policy, the State Department says,
is read, analyzed, and answered by the Public
Views and Inquiries Section of the Division of
Public Liaison.
Thousands of letters are received weekly not
only from all parts of the LTnited States but from
all over the M'orld expressing opinions on the con-
duct of United States foreign relations. The mail
is not necessarily considered to be indicative of
the trends of public opinion, but the letters are
of interest for the broad range of organizations
and groups represented by the writers, such as serv-
icemen, religious, civic, and commercial organiza-
tions as well as private individuals. Regular re-
ports on the opinions expressed in these letters
go to the policy officers of the Department.
While the range of subjects covered in the let-
ters is very broad, subjects of greatest interest
to the writers over the past 18 months have been :
United States policy on Palestine
United Nations Conference at San Francisco
The problems of foreign relief
United States policy on Spain
United States policy on China.
Universal Postal Convention
Czechoslovakia
The Swiss Legation has informed the Depart-
ment of State that the Government of Czechoslo-
vakia has adhered to the Universal Postal Con-
vention signed at Buenos Aires in 1939,^ and to the
six additional agreements provided for in article
3 of the convention. The Czechoslovakian adher-
ence is effective June 28, 1945.
MARCH 3, 1946
351
Letters of Credence
MINISTER OF SAUDI ARABIA
The newly appointed Minister of Saudi Arabia, Asad al
Faqih, presented his letters of credence to the President
on February S. For the texts of the Minister's remarks
and the President's reply, see Department of State press
release 91.
Colonel John T. Tripp Returns
From China
[Ueli'iised to tile press January 15]
Lt. Col. John T. Tripp, bacteriologist who was lent to
the State Department by the Surgeon General's Otfice, War
Department, has recently returned from an 18 months' stay
in China. Under the Department of State's cultural-coop-
eration program, Colonel Tripp, assigned to the Chinese
National Health Administration, assisted in setting up a
central laboratory in China for the standardization of
biological products, such as vaccines, antitoxins, and
serums.
The project on which Colonel Tripp worked in China was
typical of the cooperative enterprises engaged in by Chi-
nese and American agencies for assisting China's war ef-
fort and post-war rehabilitation. In this case, in addition
to the Governments of the United States and China, the
American Bureau for Medical Aid to China and the Mich-
igan Department of Health participated, the former fur-
nishing over six thousand pounds of laboratory equipment
and supplies, and the latter donating other items of labo-
ratory supplies.
Colonel Tripp remodeled and enlarged the lalH>ratory of
the National Health Administration at Koloshan to ac-
commodate the new equipment, prepared teaching man-
uals for a training course for laboratory technicians, and
gave lectures to staff members on the manufacture and
standardization of vaccines, serums, and other biologies.
Commercial vaccine laboratories and epidemic-prevention
bureaus in many parts of China were inspected by him and
recommendations made for their improvement. The prev-
alence of cholera in China stimulated a study of methods
for manufacturing bacterial vaccines in that country, which
resulted in the preparation and standardizing of cholera
vaccine in the Koloshan laboratory of the National Health
Administration. The manufacture of penicillin was also
begun in this laboratory as tlie result of Colonel Tripp's
work there.
Battle experience convinced the Chinese Army Medical
Administration of the need for intravenous solutions, such
as dextrose and saline, to augment the meager supply of
plasma. A proposal for the manufacture of these solu-
tions in China with available equipment and supplies was
adopted by the Army Medical Administration, and funds
were placed at Colonel Tripp's disposal for getting the
project started. He was also asked by the Army Medical
Administration to assist in improving the operation of the
blood bank at Kunming and increasing the production of
blood plasma. He supervised the training of enlisted
men in the Chinese Army as technicians for the blood
bank and reorganized the methods of collecting and stor-
ing plasma. Four mobile plasma units were organized
and sent out.
Before leaving China Colonel Tripp inspected health
installations in liberated China, at Tientsin, Shanghai, and
Peiping.
Colonel Tripp will return to his duties as head of the
Biologic Products Division, Michigan Department of
Health, Lansing, Michigan.
William G. Madow Assumes Post as
Visiting Professor in Brazil
[Released to the press January 15]
William G. Madow of the Bureau of the Census is fly-
ing to Brazil on January 28 to assume his post as visiting
professor of statistics at the University of Sao Paulo.
His trip is sponsored jointly by the Department of State
and the Brazilian Government. Dr. Madow will siiend
two weeks at Rio de Janeiro before proceeding to Sao
Paulo on February 15.
Appointment of Officers
.Toe L. Jessup as Executive Officer in the Office of De-
partmental Administration, effective January 2, 1946.
George C. McGhee as Special Assistant to the Deputy
to the Assistant Secretary for Economic Affairs, effective
January 2, 1946.
Merle K. Wood as Executive OflScer in the Office of Near
Eastern and African Affairs, effective January 2, 194C.
T. M. Beale, Jr., as Advi.ser on British Commonwealth
and Empire Commei-cial Affairs in the Division of Com-
mercial Policy, effective January 5, 1946.
Honore Marcel Catudal as Adviser in the Division of
Commercial Policy, effective January 5, 1946.
C. Tyler Wood and Henry R. Labouisse, Jr., as Special
Assistants to the Assistant Secretary for Economic Affairs,
effective January 23 and 28, 1946, resiiectively.
William Benton and William T. Stone as Chairman and
Vice Chairman, respectively, on the Interdepartmental
Committee on Scientific and Cultural Cooperation, effec-
tive February 4, 1946.
Robert F. Evans as Special Assistant to the Director in
the Office of the Foreign Service.
352
DEPARTMENT OF STATE BULLETIN
The Foreign Service
Diplomatic Offices
The office at Budapest, Hungary, was chaiigetl from a
United States Mission to a Legation effective January 26,
I'MG, upon the presentation of credentials by tlie Minister.
Confirmation
On Feliruary 13, 11)4(5 the Senate confirmed the nomina-
tion of Raphael O'Hara Lanier as Envoy Extraordinary
and Minister Plenipotentiary to Liberia.
The Congress
study of Immigration and Naturalization Laws and
Problems : Hearings Before the Committee on Immigration
and Naturalization, House of Representatives, Seventy-
ninth Congress, First Session, ijursuant to H. Res. 52, au-
thorizing a study of immigration and naturalization laws
and problems. Part 3, July 3, 194.5. iii, 133 pp.
To Revise and Codify the Nationality Laws of the United
States Into a Comprehensive Nationality Code: Hearings
Before the Committee on Immigration and Naturalization,
House of Representatives, Seventy-sixth Congress. First
Session on H.R.6127, superseded by H.R.9080, a bill to re-
vise and codify the nationality laws of the United States
into a comprehensive nationality code. January 17, Feb-
ruary 13, 20, 27, 28, March 5, April 11, 16, 23, May 2, 3, 7, 9.
13, 14, and June 5, 1940. ii, 710 pp. (Indexed.)
Postwar Economic Policy and Planning: Part 2, Eighth
Report of the House Special Committee on Postwar Eco-
nomic Policy and Planning pur.suant to H. Kes. 60, A
Resolution Authorizing the Continuation of the Special
Committee on Postwar Economic Policy and Planning,
Statistica.l Analysis of the Economic Conditions of Se-
lected Countries of Europe and the Middle East. H. Rept.
1527, 79th Coug., iii, 72 pp.
Authorizing Appointment of Additional Foreign-Service
Otticers in the Classified Grades. 79th Cong., Report No.
1590. 3 pp.
To Investigate Executive Agencies : Hearings before the
Special Connnittee to Investigate Executive Agencies,
House of Representatives, 79th Cong., pursuant to H. Res.
88, A Resolution to Continue a Select Committee to In-
vestigate Acts of Executive Agencies Beyond the Scope of
Their Authority. Hearings on WPB Order M-388— OPA
Orders 578-580 and Proposed Map, Supplement to Fart 1,
June 20, 1945. 60 pp. [State Department Testimony
pp. 57-60.]
Contents- Continued
Record of the week — Continued page
Visit of Argentine Artist 349
Licjuidation Ofiiees Open in Canada and Atlantic Areas . . 350
Handling of iMail on Foreign Policy 350
* Universal Postal Convention. Czechoslovakia 350
Letters of Credence. Minister of Saudi Arabia 351
Colonel John T. Tripp Returns From China 351
William G. Madow Assumes Post as Visiting Professor in
Brazil 351
The Department. Appointment of Officers 351
The Foreign Service:
Diplomatic Offices 352
Confirmation ■ 352
The Congress 352
• Treaty Information.
PUBLISHED WITH APPROVAL OF DIRECTOR OF BUREAU O* THE BUDGET
US- GOVERNMENT PRINTING OFFICE; 19*6
THE DEPARTMENT OF STATE
wma
VOL. XIV, NO. 349
MARCH 10, 1946
". . . we have pinned our hopes to the banner of the
United Nations"
Address by THE SECRETARY OF STATE page 355
A Look at UNRRA
By DALLAS DORT
page 359
Trial of Far Eastern War Criminals
CHARTER OF THE INTERNATIONAL MILITARY TRIBUNAL .
page 36r
General Themes for German Propaganda Abroad page 365
^Vl^NT o^
«■>
For complete contents
see inside cover
^^
^
♦
/
«.
h-tes o^
THE DEPARTMENT OF STATE
BULLETIN
VoL.XIV'No.aw
PuBLlCATIO^ 2482
March 10, 1946
For Bale by the Superintendent of Documenle
U. S. Government Printing Office
Washington 25, D. C.
Subscription:
52 i68ueB, §3.50; single copy, 10 cents
Special offer: 13 weeks for $1.00
(renewable only on yearly basis)
The Department of State BULLETIN,
a weekly publication compiled and
edited in the Division of Research and
Publication, Office of Public Affairs,
provides the public and interested
agencies of the Government with
information on developments in the
field of foreign relations and on the
work of the Department of State and
the Foreign Service. The BULLETIN
includes press releases on foreign
policy issued by the If hite House and
the Department, and statentents and
addresses made by the President and
by the Secretary of State and other
officers of the Department, as well as
special articles on various phases of
international affairs and thefunctions
of the Department. Infornuition con-
cerning treaties and international
agreements totchich the UnitedStates
is or may become a party and treaties
of general international interest is
included.
Publications of the Department, cu-
muUitive lists of which are published
at the end of each quarter, as well as
legislative material in the field of inter-
national relations, are listed currently.
Contents
^xj i94fe Page
". . . we have pinned our hopes to the banner of the
United Nations". Address by the Secretary of State . . 355
A Look at UNRRA. Article by Dallas Dort 359
Trial of Far Eastern War Criminals:
Special Proclamation: Establishment of an International
Military Tribunal for the Far East 361
Charter of the International Military Tril)unal for the Far
East 361
Disposition of Manchurian Enterprises 364
Excerpt from Basic Postulates and General Themes For
German Propaganda Abroad. Directions for Propa-
ganda to England 365
Crime Against the Jews Under Hitler: Statement by the
President 369
Appointment of Major General Hilldring as Assistant Secre-
tary of State 369
Far Eastern Commission: Summary Report on Trip to Japan . 370
Appointment of Randolph Paul as Special Assista'iit to the
President : 374
International Organizations and Conferences
Calendar of Meetings 375
Activities and Developments:
Far Eastern Commission 375
Second North American Regional Broadcasting Engineering
Conference 376
Aviation Agreements: China, Canada, and Dominican
Republic 377
The Record of the Week
Meeting of Far Eastern Commission. Address of Welcome by
theSecretary of State 378
North American Regional Broadcasting Conference. Address
by Francis de Wolf 379
Objectives of International Economic Foreign Policy:
Message of the President to the Congress 380
Statement of the Foreign Loan Policy of the U. S. Govern-
ment by the National Advisory Council on Interna-
tional Monetary and Financial Problems 381
Export-Import Bank of Washington 384
The United Nations Meet. Radio Broadcast 386
Commission of Experts To Prepare Report on Italy-Yugoslavia
Boundary 391
Freedom of Information — A Check to Irresponsible Power.
By Assistant Secretary Braden 392
Program for Control and Regulation of Japanese Trade . . . 394
Removal of Reiiuirements on Use of American Passports . . . 395
International Understanding Through a Cultural-Relations
Program. By Assistant Secretary Braden 396
U. S.-U. K. Agreement on Radio-Distance Indicators on Air-
9raft 397
Visit of Dutch Editors 398
Spanish Situation 399
IT. S.-U. K. Air-Transport Agreement: Statement by the
President 399
American Consulates Reopened in Germany 399
Consular Offices 400
The Congress 400
" . . . we have pinned our hopes
to the banner of the United Nations"
Address by THE SECRETARY OF STATE
WE ARE BEGiNNiNii tc) reiiHze that the war is
over. It is good to liave sons, husbands, and
fathers home again. It is good to open a news-
paper without fear of finding in tlie casuaUy lists
the name of one near and dear to us.
But this is not wholly a time of celebration and
rejoicing. As families in their homes on the farms
and in the cities settle back from the dinner table
to hear the boys tell of Normandy and Iwo Jima,
there is an unspoken cjuestion in every mind. The
question is wliat we can do to make certain that
there will never be another war.
During the war our goal was clear. Our goal
Mas victory. The pi-oblems of industrial and mili-
tary mobilization, it is true, were problems of the
first magnitude. Production bottlenecks often
seemed unbreakable, transportation diiliculties and
nuinpower shortages insurmountable. On the
fighting front the combined land, sea, and air
operations were heartbreaking in complexity.
These were hard tasks. Yet we were able to
apply a yardstick to each proposal by asking a
simple question: "AVill it help to win the war?"
The conunon goal of victory served to unite us and
to give purpose and direction to our eiforts.
Now that we have come into calmer waters, our
relief and gratitude are mixed with uncertainty.
Our goal Jiow is permanent peace, and surely we
seek it even more anxiously than we sought victory.
The difficulty is that the path to permanent peace
is not so easy to see and to follow as was the path
to victory.
When an issue is presented, we ask, "Will it
help to win the peace?" When the answer is slow
to come or does not come at all, we grow uneasy
and apprehensive.
While we may be in doubt about many things,
there are certain basic jiropositions on which we
are clear.
One is that a just and lasting peace is not the
inevitable result of victory. Rather, victory has
given us the opportunity to build such a peace.
And our lives depend upon whether we make the
most of this opportunity.
Another thing of which we are certain is that
we Americans alone cannot determine wliether
the world will live in peace or perish in war.
Peace depends quite as much upon others as it
does upon us. No nation is the complete master
of its fate. We are all bound together for better
or for worse.
Because we know this, we have pinned our hopes
to the banner of the United Nations. And we are
not content simply to take our place in that Or-
ganization. We realize that, althougli the dreams
of the world are lodged in it, the United Nations
will fail unless its members give it life by their
confidence and by their determination to make it
work in concrete cases and in everyday affairs.
And so I wish to talk to you about the first
meetings of the United Nations. What lias been
said in these meetings has been said as plainly and
bluntly as anything I have heard said by respon-
sible statesmen in any private conference.
These first meetings were intended only to es-
tablish the various organs of the United Nations.
But so pressing were some of the problems pre-
sented to the Security Council tliat they had to be
dealt with before there was a chance for the Coun-
cil to adopt even provisional rules of procedure.
All was not calm and peaceful at the meetings
in London. There was effort to use the United
Nations to advance selfish national aims. But the
clash of national interests and jjurposes which were
Deliveieil to the Overseas Press Club in New York, N. Y.,
on Fell. 28 and released to the press on the same date.
This address was broadcast over the network of the
National Broadcasting System.
355
356
DEPARTMENT OF STATE BULLETIN
reflected in the debates in London was very much
like the chish of hx'al and special interests which
are reflected in our national and state legislatures.
We may deprecate some of these clashes of in-
terest. But when they exist, it is better that they
should be publicly revealed. If these conflicts of
interest did not appear in the forums of the United
Nations, these forums would be detached from
reality and in the long run turn out to be pur-
poseless and futile.
A most significant precedent was established
when the Security Council finished its discussions
of the complaint of the Syrian and Lebanese Gov-
ernments requesting the withdrawal of French and
British troops from their territories.
The Council did not take formal action because
of a difference among the permanent members as
to the form of the resolution. But no one ques-
tioned the general proposition that no state has
the right to maintain its troops on the territory of
another independent state without its consent, nor
the application of this proposition to the pending
case.
The particular form of resolution to this gen-
eral effect which was presented by the United
States representative, Mr. Stettinius, was sup-
ported by most of the members of the Council. It
failed of acceptance, however, because the Soviet
Union vetoed it on the gi-ound that it was not
definite enough.
But the British and French Governments imme-
diately announced that, notwithstanding the tech-
nical veto of the Soviet Union, they would act in
accordance with the American resolution as it
clearly represented the views of the Council.
This indicates that the mere legal veto by one
of the permanent members of the Council does
not in fact relieve any state, large or small, of its
moral obligation to act in accordance with the pur-
poses and principles of the Charter.
The United Nations got off to a good start.
However, that does not mean it is an assured suc-
cess. It simply means that the Charter will work
if the peoples of the United Nations are determined
to make it work. At times our Congress may
make serious errors of omission and commission.
Such errors are not the fault of the Congress as
an institution. They are the fault of its members
or of their constituents who fail to measure up
to their responsibilities.
So it is with the United Nations. It will succeed
only as we, the peoples of the United Nations,
measure up to our responsibilities.
I should be lacking in candor if I said to you
that world conditions today are sound or reassur-
ing. All around us there is suspicion and distrust,
which in turn breetls suspicion and distrust.
Some suspicions are unfounded and unreason-
able. Of some others that cannot be said. That
requires frank discussion between great powers
of the things that give rise to suspicion. At the
Moscow conference there was such frank discus-
sion. It was helpful. But the basis of some sus-
picions persists and prompts me to make some com-
ments as to our position.
We have joined with our allies in the United
Nations to put an end to war. We have covenanted
not to use force except in the defense of law as
embodied in the purposes and principles of the
Charter. We intend to live up to that covenant.
But as a great power and as a permanent mem-
ber of the Security Council we have a responsi-
bility to use our influence to see that others powers
live up to their covenant. And that responsibility
we also intend to meet.
Unless the great powers are prepared to act in
the defense of law, the United Nations cannot
prevent war. We must make it clear in advance
that we do intend to act to prevent aggression,
making it clear at the same time that we will not
use force for any other pur^jose.
The great powers are given special responsi-
bilities because they have the strength to main-
tain peace, if they have the will to maintain peace.
Their strength in relation to one another is such
that no one of them can safely break the peace if
the others stand united in defense of the Charter.
The present power relationships of the great
states preclude the domination of the world by
any one of them. Tiiose power relationships can-
not be substantially altered by the unilateral ac-
tion of any one great state without profoundly dis-
turbing the whole structure of the XTnited Nations.
Therefore, if we are going to do our part to
maintain peace in the world we must maintain our
power to do so; and we must make it clear that
we will stand united with other great states in
defense of the Charter.
If we are to be a great power we must act as a
great power, not only in order to ensure our own
security but in order to preserve the peace of the
world.
MARCH 10, 1946
357
Much as we desire general disannaiiient and
much as we are prepared to participate in a gen-
eral reduction of armaments, we cannot be faithful
to our obligations to ourselves and to the world if
we alone disarm.
"While it is not in accord with our traditions to
maintain a large professional standing ai'my, we
nuist be able and ready to provide armed con-
tingents that may be required on short notice: We
must also have a trained citizenry alile and ready
to supplement those armed contingents without
unnecessarily prolonged training.
That is why in the interest of peace we cannot
allow our military establishment to be reduced
below the point required to maintain a position
commensurate with our responsibilities; and that
is why we must have some form of universal mili-
tary training.
Our power thus maintained cannot and will not
be used for aggressive purposes. Our tradition as
a peace-loving, law-abiding, democratic people
should be an assurance that our force will not be
used except in the defense of law. Our armed
forces, except as they may be called into action by
the Security Council, cannot be employed in war
without the consent of the Congress. We need
not fear their misuse uidess we distrust the repre-
sentatives of the people.
I am convinced that there is no reason for war
between any of the great powers. Their present
power relationships and interests are such that
none need or should feel insecure in relation to the
others, as long as each faithfullj- observes the pur-
poses and principles of the Charter.
It is not enough for nations to declare they do
not want to make war. Hitler said that. In a
sense he meant it. He wanted the world to accept
the domination of a totalitai'ian government under
his direction. He wanted that without war if pos-
sible. He was determined to get it with war if
necessary.
To banish war, nations must refrain from doing
the things that lead to war.
It has never been the policy of the United States
in its internal affairs or in its foreign relations to
regard the .ffafu.s quo as sacrosanct. The essence of
our democracy is our belief in life and growth and
in the right of the people to shape and mould their
own destiny.
It is not in our tradition to defend the dead
hand of reaction or the tyranny of privilege. We
did not fight against the Nazis and Fascists who
turned back the clock of civilization in order that
we might stop the clock of progress.
Our diplomacy must not be negative and inert.
It must be capable of adjustment and development
in response to constantly changing circumstances.
It must be marked by creative ideas, constructive
proposals, practical and forward-looking sug-
gestions.
Though the .status quo is not sacred and un-
changeable, we cannot overlook a unilatend gnaw-
ing away at the status quo. The Charter forbids
aggression, and we cannot allow aggression to be
acconqilished by coercion or pressure or by subter-
fuges such as political infiltration.
When adjustments between states, large or
snuill, are called for, we will frankly and fairly
consider those adjustments on their merits and in
the light of the common interests of all states,
large and small, to maintain peace and security
in a world based on the unity of all great powers
and the dominance of none.
There are undoubtedly vitally important adjust-
ments which will require our consideration. Some
of these situations are delicate to deal with. I am
convinced, however, that satisfactory solutions can
be found if there is a stop to this maneuvering for
strategic advantage all over the world and to the
use of one adjustment as an entering wedge for
further and undisclosed penetrations of power.
We must face the fact that to preserve the
United Nations we cannot be indifferent — veto or
no veto — to serious controversies between any of
the great powers, because such controversies could
affect the whole power relationship between all of
the great powers.
The United States wishes to maintain friendly
relations with all nations and exclusive arrange-
ments with no nation. Naturally there are some
{problems which concern some nations much more
than other nations. That is true in regard to
many problems related to inter-American affairs.
That is true in regard to the control of Germany
and Japan.
In our relations with the other gi'eat powers
there are uumy problems which concern two or
three of us much more than the others of us. I
see no objection to conferences between the big
three or the big four or the big five.
Even conferences between ourselves and the So-
358
DEPARTMENT OF STATE BULLETIN
viet Union alone, conferences between ourselves
and Britain alone, or conferences between our-
selves and France or China alone, can all help to
further general accord among the great powers
and peace with the smaller powers.
But in such conferences, so far as the United
States is concerned, we will gang up against no
state. We will do nothing to break the world into
exclusive blocs or spheres of influence. In this
atomic age we will not seek to divide a world
which is one and indivisible.
We have openly, gladly, and whole-heartedly
welcomed our Soviet Ally as a great power, second
to none in the family of the United Nations. We
have approved many adjustments in her favor
and, in the process, resolved manj^ serious doubts
in her favor.
Only an inexcusable tragedy of errors could
cause serious conflict between us in the future.
Despite the differences in our way of life, our
people admire and respect our Allies and wish to
continue to be friends and partners in a world
of expanding freedom and rising standards of
living.
But in the interest of world peace and in the
interest of our common and traditional friendship
we must make plain that the United States in-
tends to defend the Charter.
Great powers as well as small powers have
agreed under the United Nations Charter not to
use force or the threat of force except in defense
of law and the purposes and principles of the
Charter.
We will not and we cannot stand aloof if force or
the threat of force is used contrary to the jnir-
poses and principles of the Charter.
We have no right to hold our troops in the
territories of other sovereign states without their
approval and consent freely given.
We must not luiduly prolong the making of
peace and continue to impose our troops upon small
and impoverished states.
No power has a right to help itself to alleged
enemy properties in liberated or ex-satellite coun-
tries before a reparation settlement has been agreed
upon by the Allies. We have not and will not
agree to any one power deciding for itself what
it will take from these countries.
We must not conduct a war of nerves to achieve
strategic ends.
We do not want to stumble and stagger into
situations where no power intends war but no
power will be able to avert war.
We must not regard the drawing of attention to
situations which might endanger the peace, as an
affront to the nation or nations responsible for
those situations.
It is quite possible that any nation may in good
faith embark on a course of conduct without fully
appreciating the effects of its conduct. We must
all be willing to review our actions to preserve
our common interests in the peace, which are so
much more important to all of us than the differ-
ences which might divide us.
We must get back to conditions of peace. We
must liquidate the terrible legacy which the war
has left us. We must return our armies to their
homelands. We must eliminate the breeding
grounds of suspicion and fear. We must not de-
ceive ourselves or mislead our Allies. To avoid
trouble we must not allow situations to develop
into incidents from which there is no retreat.
We must live by the Charter. That is the only
road to peace.
To live by the Charter requires good-will and
understanding on the part of all of us. We who
had patience and gave confidence to one another
in the most trying days of the war must have pa-
tience and give confidence to one another now.
No nation has a monopoly of virtue or of wis-
dom, and no nation has a right to act as if it had.
Friendly nations should act as friendly nations.
Loose talk of the inevitability of war casts
doubt on our own loyalty to the Charter and jeop-
ai'dizes our most cherished freedoms, both at home
and abroad.
There are ideological differences in the world.
There always have been. But in this world there
is room for many people with varying views and
many governments with varying systems. None
of us can foresee the far-distant future and the
ultimate shape of things to come. But we are
bound together as part of a common civilization.
As we view the wreckage of the war, we must
realize that the urgent tasks of reconstruction, the
challenging tasks of creating higher standards of
living for our people, should absorb all our con-
structive energies.
Great states and small states must work to-
gether to build a friendlier and hajapier world.
If we fail to work together there can be no peace,
no comfort, and little hope for any of us.
MARCH 10, 1946
359
A Look at UNRRA
Article by DALLAS DORT
DFXEGATES from the United Nations are meet-
ing on the fifteenth of March at Atlantic
City to participate in the P'ourth Session of the
Council of the United Nations Relief and Rehabili-
tation Administration. They will discuss prob-
lems pertaining to the carrying to a successful
conclusion of a vast world-wide program already
in the full swing of operations.
Three years ago Atlantic City was the scene of
another Council meeting — the first. At that time
the clouds of war hung heavily over the world.
None knew how long the fighting would last or the
extent of the destruction and j^iivation which
would occur as a result of the struggle. Every-
one realized that human needs in the wake of bat-
tle would be on a scale never known before, and
it was felt that only through the combined efforts
of all the United Nations could such staggering
needs be met. The representatives of 44 nations
had just signed a document which pledged them
all to cooperate in this great undertaking which
was the first attempt in history to pool the re-
sources and efforts of many nations to relieve the
distress caused by war. Although many of the
problems to be faced could not be clearly antici-
pated, the Conference completed the organiza-
tion of UNRRA and the establishing of its basic
policies and procedures with high confidence that
UNRRA's job could successfully be accomplished.
Soon after UNRRA's work got under way, dif-
ficulties of all kinds immediately began to appear.
It was not known exactly when, where, or to what
extent the course o^ war would create the need for
assistance and make it possible to start operations.
UNRRA could only di'aw up plans in the hope
that when the time for action should arrive they
would be adequate and appropriate to meet the
needs which would emerge. The fact that the
exact nature and timing of the task was so un-
certain frequently made it impossible for UNRRA
to obtain competent persons, especially since most
such people were engaged in urgent and immedi-
ate war work. Serious criticism was leveled at
UNRRA's staff and its operating procedures.
Problems of military' security and possible inter-
ference with military operations delayed action
and made it extremely difficult to work out defi-
nite and prompt arrangements with the liberating
armies for the distribution of relief and rehabili-
tation supplies in ai'eas still in or near active
theaters of war. By far the most serious prob-
lem, which soon became apparent, was that the
requirements for supplies and ships needed to
support a continuing war were so vast that in
many cases these resources could not be obtained
for UNRRA without interfering with clear mili-
tarj' needs.
As these difficulties were gradually overcome
and as the way was cleared for operations on a
large scale, other problems no less serious de-
veloped. These, for the most part, concerned basic
policies and programs of operation. Serious dif-
ferences of opinion were expressed regarding such
matters as UNRRA responsibilities in ex-enemy
areas and toward displaced persons, relations
with the international allocating boards and na-
tional supplying agencies, and the proper pattern
for distributing UNRRA resources. Delays in
procuring supplies were encountered and difficul-
ties arose in presenting proper justification of re-
quirements before allocating bodies and in estab-
lishing adequate accounting records and systems.
There arose a chorus of criticism, some of it justi-
fied, some of it not, based on failure to solve
promptly these and other problems.
UNRRA has made great progress in overcom-
ing these difficulties and is now well on the way
toward accomplishing the task which it was set
up to do. Following the end of hostilities it be-
came possible to add to the staff a niunber of
persons who had filled responsible positions in
military and other war activities wTiere their com-
Mr. Dort is Adviser ou Relief and Rehabilitation, De-
partment of State.
360
DEPARTMENT OF STATE BULLETIN
peteiice had been thoroughly tested. Arrange-
ments were successfully worked out with military
and civilian authorities to permit relief operations
in areas wliicli were liberated.
In si>ite of all these difficulties UNRRA has
obtained, both before and after tlie termination
of the war. a vast amount of supplies and of ships
to transport tliem. Up to March 1, 1946 a total
of (i.oOO.OOO tons of supplies had been shipjied to
Europe and the Far East. A very large part of
these were items in ci'itical world short supply
which, with the support of the supplying govern-
ments, were made available to UNRRA despite
other urgent claims. Without these supplies which
UNRRA has sent mass starvation would have re-
sulted in many nations. UNRRA has provided
not only food, but clothing, slielter, transportation,
and the initial means of restoring agricultural
production and tlie pioduction by industry of es-
sential relief supplies.
In completing the work of UNRRA three big
jirolilems nuist be solved. One is to obtain the
balance of the second contributions recommended
by tlie Council at its third meeting in London
in August 1945. The seccmd is to translate
UNRRA's financial resources into actual, de-
livered supplies. The third is to utilize its
resources in a way which will be most effective in
placing the recipient countries in a position to
stand on their own feet economically wlien
UNRRA assistance comes to an end.
All 31 non-invaded UNRRA countries were re-
quested by the Council at the third meeting to make
a second contribution erjual to one percent of their
national incomes. This will amount to a total of
$l.Sr)0,000.000. Up to March 1, 1946, 3 countries
had made their second contribution in full ; '2. in-
cluding the United States, had made a partial con-
tribution; 2 more had authorized the contribution
but had made no actual payments; and 24 had
taken no action. UNRRA had actually received
$1,(I9:2,60(),000 out of the second contributions. It
cannot carry on its programs unless the remaining
amounts are forthcoming in the very near future.
Financial resources are of no value unless they
can be translated into supplies. A year or even
six months ago nobody would have imagined that
requirements for wjieat imports would have risen
lo a |>oint wlieie availa})le sujildies could meet only
alittleover half of the need for the first six months
of this year or even that supplies of meats, fats,
and oils would fall so far short of covering the
increased requirements. Crop failures resulting
from war and bad weather have occurred in
Europe, in the Far East, and recently in India.
Difficulties in reconverting from wartime to peace-
time production and the tremendous world-wide
demands for products which have not been avail-
able during the war have resulted in a shortage
of many other connnodities required by UNRRA.
Only extraordinary efforts by the supplying and
contributing members of UNRRA to make avail-
al)le the maxinnnn amount of foodstuffs and other
connnodities can remedy this situation. The seri-
ousness of the problem is fully recognized by the
supplying governments. President Truman has
pledged full United States cooperation and under
his direct leadership a series of measures has
been taken to increase United States expoi-ts of
wlieat and other needed items. The United States
hopes to ship 6,000,000 tons of wheat in the first
half of this year although its pre-war exports for
a comparable period amounted to only 500,000 to
1,0()( ),()()() tons. Canada has also scheduled maxi-
nnnn exports. Other countries are taking similar
actions. Furtlier sacrifices will imdoubtedly be
required and will be made before the crisis is over.
It is vitally important that the end of UNRRA
assistance shall not result in leaving the people
of recipient countries and their national econo-
mies in such a position that further suffering and
economic chaos will follow. UNRRA and the re-
cipient countries together will need to plan its
programs and the use of the imported supjdies so
that they will achieve the maximum results in
preparing the.se countries for economic stability.
Agricultural rehabilitation supjdiesto increase the
coming harvests and industrial supplies to permit
the production of essential relief goods will need
to be imported and effectively used even though
this may limit the amount of immediate food,
clothing, and shelter which is included in the pro-
gram. Undoubtedly the devastated countries also
will need to exert their utmost efforts to continue
the internal measures which they have already
taken or have planned to conserve their own re-
sources and stabilize their economies.
Certainly there is reason to believe that a co-
operative effort by the UNRRA staff, the supply-
ing countries, and the receiving countries will re-
sult in the completion of UNRRA's great task with
the high hopes of that first Atlantic City confer-
ence fuU}^ realized.
MARCH in, 1946
361
Trial of Far Eastern War Criminals
SPECIAL PROCLAMATION
ESTABLISHMENT OF AN INTERNATIONAL MILITARY TRIBUNAL FOR THE FAR EAST
[The fuUowiug tlocuuieiits relating to the International Military
Tribunal for the Far East are printed as issued on January 19
in Tokyo by the Supreme Commander for the Allied Powers.]
Whereas, the United States and the Nations
allied therewith in opposing the illegal wars of
aggression of tlie Axis Nations, have from time
to time made declarations of their intentions tliat
war criminals should be brought to justice;
Whereas, the Governments of the Allied Powers
at war with Japan on the 26tli July 1945 at Pots-
dam, declared as one of the terms of surrender
that stern justice shall be meted out to all war
criminals including those who have visited cruel-
ties upon our prisoners;
AVhereas, by the Instrument of Surrender of
Japan executed at Tokyo Bay, Japan, on the 2nd
September 1945, the signatories for Japan, by com-
mand of and in behalf of the Emperor and the
Japanese Government, accepted the terms set forth
in such Declaration at Potsdam;
Whereas, by such Instrument of Surrender, the
authority of the Emperor and the Japanese Gov-
ernment to rule the state of Japan is made subject
to the Supreme Commander for the Allied Powers,
who is autiiorized to take such steps as he deems
proper to effectuate the terms of surrender;
Whereas, the undersigned has been designated
by the Allied Powers as Supreme Commander for
the Allied Powers to carry into effect tlie general
surrender of the Japanese armed forces;
Whereas, the Governments of the United States,
Great Britain and Russia at the Moscow Con-
ference, 2Cth December 1945, having considered
the effectuation by Japan of the Terms of Sur-
render, with the concurrence of China have agreed
that the Supreme Commander shall issue all
Orders for the implementation of the Terms of
Surrender.
Now, therefore, I, Douglas MacArthur, as Su-
preme Commander for the Allied Powers, by vir-
tue of tlie autliority so conferred upon me, in order
to implement the Term of Surrender which re-
quires the meting out of stern justice to war crimi-
nals, do order and provide as follows:
Article 1. There shall be established an Inter-
national Military Tribunal for the Far East for
the trial of tliose persons charged individually, or
as members of organizations, or in both capacities,
with offenses whicli include crimes against peace.
Article 2. The Constitution, jurisdiction and
functions of this Tribunal are those set forth in
the Charter of the International ^Military Tribunal
for the Far East, approved by me this day.
Article 3. Nothing in this Order shall prejudice
the jurisdiction of any other international, na-
tional or occupation court, commission or other
tribunal established or to be established in Japan
or in any territory of a United Nation with which
Japan has been at war, for the trial of war
criminals.
Given under my iiand at Tokyo, this 19th day
of January, 1946."
/s/ Douglas MacArthur
/t/ Douglas ^IacArthur
General of the Army, United States Army
Supreme Commander for the Allied Poivera
CHARTER OF THE
INTERNATIONAL MILITARY TRIBUNAL FOR THE FAR EAST
CONSTITUTION OF TRIBUNAL
Article 1. Tribunal Established. The Interna-
tional Military Tribunal for the Far East is hereby
established for tlie just and prompt trial and pun-
ishment of the major war criminals in tlie Far
685890—46 2
East. Tlie permanent seat of the Tribunal is in
Tokyo.
Article 2. Members. The Tribunal shall consist
of not less than five nor more than nine ^Members,
appointed by the Supreme Commander for the
Allied Powers from the names submitted by the
Signatories to tlie Instrument of Surrender.
362
DEPARTMENT OF STATE BULLETIN
Article 3. Officers and Secretariat.
(a) President. The Supreme Commander for
the Allied Powers shall appoint a Member to be
President of the Tribunal.
(b) Secretariat.
(1) The Secretariat of the Tribinial shall be
composed of a General Secretary to be appointed
by the Supreme Commander for the Allied Powers
and such assistant secretaries, clerks, interpreters,
and other personnel as may be necessary.
{'2) The General Secretary shall organize and
direct the work of the Secretariat.
(3) The Secretariat shall receive all documents
addressed to the Tribunal, maintain the records
of the Tribunal, provide necessary clerical services
to the Tribunal and its Members, and perform
such other duties as may be designated by the
Tribunal.
Article 4- Quonim and Voting. ,
(a) Qnonon. The presence of a majority of all
Members shall be necessary to constitute a quorum.
(&) Voting. All decisions and judgments of
this Tribunal, including convictions and sentences,
shall be by a majority vote of those Members of
the Tribunal present. In case the votes are evenly
divided, the vote of the President shall be de-
cisive.
II.
JURISDICTION AND GENERAL PROVISIONS
Article 5. Jurisdiction Over Persons and Of-
fenses. The Tribunal shall have the power to try
and punish Far Eastern war criminals who as in-
dividuals or as members of organizations are
charged with offenses which include Crimes
against Peace.
The following acts, or any of them, are crimes
coming within the jurisdiction of the Tribunal for
which there shall be individual responsibility:
{a) Crimes againM Peace: Namely, the plan-
ning, preparation, initiation or waging of a de-
clared or undeclared war of aggression, or a war
in violation of international law, treaties, agree-
ments or assurances, or participation in a com-
mon plan or conspiracy for the accomplishment of
any of the foregoing ;
(h) Conventional War Crimes; Namely, viola-
tions of the laws or customs of war;
(e) Crimes against Humanity : Namely, murder,
extermination, enslavement, deportation, and other
inhumane acts conunitted against any civilian
jjopulation, before or during the war, or persecu-
tions on political or racial grounds in execution of
or in connection with any crime within the juris-
diction of the Tribunal, whether or not in viola-
tion of the domestic law of the country where per-
petrated. Leaders, organizers, instigators and ac-
complices participating in the formulation or exe-
cution of a common plan or conspiracy to commit
an}' of the foreg<iing crimes are responsible for all
acts performed by any person in execution of such
l^lan.
Article 0. Responsibility of Accused. Neither
the official position, at any time, of an accused, nor
the fact that an accused acted i)ursuant to order of
his government or of a superior shall, of itself, be
sufficient to free such accused from responsibility
for any crime with which he is charged, but such
circumstances may be coisidered in mitigation of
l^unishment if the Tribunal determines that justice
so requires.
Article 7. Eules of Procedure. The Tribunal
may draft and amend rules of procedure consistent
with the fundamental provisions of this Charter.
Article S. Counsel.
(a) Chief of Counsel. The Chief of Coimsel
designated by the Supreme Commander for the
Allied Powers is responsible for the investiga-
tion' and prosecution of charges against war crim-
inals within the jurisdiction of this Tribunal, and
will render such legal assistance to the Supi-eme
Commander as is appropriate.
{h) Associate Counsel. Any United Nation
with which Japan has been at war may appoint an
Associate Counsel to assist the Chief of Counsel.
III.
FAIR TRIAL FOR ACCUSED
Article 9. Procedure for Fair Trial. In order
to ensure fair trial for the accused, the following
procedure shall be followed :
{a) Indictment. The indictment shall consist
of a plain, concise and adequate statement of each
otl'ense charged. Each accused shall be furnished
in adequate time for defense a copy of the indict-
ment, including any amendment, and of this Char-
ter, in a language understood by the accused.
(b) Hearing. During the trial or any prelimi-
nary proceedings the accused shall have the right
to give any explanation relevant to the charges
made against him.
MARCH in, 19-16
363
(e) Language. The trial and related proceed-
ings sliall be conducted in Englisli and in tlie lan-
guage of the accused. Translations of documents
and other papers shall be provided as needed and
requested.
(fZ) Counsel for Accused. Each accused shall
be represented by counsel of his own selection,
subject to disapproval of such counsel at any time
by the Tribunal. The accused shall file with the
General Secretary of the Tribunal the name of
his counsel or of counsel wlioni he desires the
Tribunal to appoint. If an accused is not repre-
sented by counsel, the Tribunal shall designate
counsel for him.
(<?) Evidence for Defense. An accused shall
have the right through himself or through liis
counsel to present evidence at the trial in support
of his defense, and to examine any witness called
by tlie prosecution, subject to such reasonable re-
strictions as the Tribunal may detei'mine.
(/) Production of Evidence for the Defense.
An accused may apply in writing to the Tribunal
for the production of witnesses or of documents.
Tlie application shall state where the witness or
document is thought to be located. It shall also
state the facts proposed to be proved by the wit-
ness or the document and the relevancy of such
facts to the defense. If the Tribunal grants the
application, the Tribunal shall be given such aid in
obtaining production of the evidence as the cir-
cumstances require.
Article 10. Applications and Motions he fore
Trial. All motions, applications or other requests
addressed to the Tribunal prior to the connnence-
nient of trial shall be made in writing and filed
with the General Secretary of the Tribunal for
action by the Tribunal.
IV.
POWERS OF TRIBUNAL AND CONDUCT OF TRIAL
Article 11. Powers. The Tribunal shall have
the power
(ff ) To summon witnesses to the trial, to require
them to attend and testify, and to question them,
(&) To interrogate each accused and to permit
comment on his refusal to answer any question,
(c) To require the production of documents and
other evidentiary material,
{d) To require of each witness an oath, affirma-
tion, or such declaration as is customary in the
country of the witness, and to administer oaths,
(e) To appoint officers for the carrying out of
any task designated by the Tribunal, including
the power to have evidence taken on commission.
Article 12. Vonduct of Trial. The Tribunal
shall
{a) Confine the trial strictly to an expeditious
hearing of the issues raised by the charges,
{h) Take strict measures to jn-event any action
which would cause any unreasonable delay and
rule out irrelevant issues and statements of any
kind whatsoever,
(f) Provide for the maintenance of order at the
trial and deal sunnnarily with any contumacy,
imposing appropriate punishment, including ex-
clusion of any accused or his counsel from some
or all further proceedings, l)ut without prejudice
to the determination of tlie charges,
(d) Determine the mental and physical capacity
of any accused to proceed to trial.
Article 13. Evidence.
(a) Admissibility. The Tribunal shall not be
bound by technical rules of evidence. It shall
adopt and apply to the greatest possible extent
expeditious and non-technical procedure, and
shall admit any evidence which it deems to have
probative value. All purported admissions or
statements of the accused are admissible.
{h) Relevance. The Tribunal may require to be
informed of the nature of any evidence before it is
offered in order to rule upon the relevance.
(c) Specific evidence admissible. In particular,
and without limiting in any way the scoi:)e of the
foregoing general rules, the following evidence
may be admitted:
(1 ) A document, regardless of its security classi-
fication and without proof of its issuance or sig-
nature, which appears to the Tribunal to have
been signed or issued by any officer, department,
agency or member of the armed forces of any
government.
(2) A report which appears to the Tribunal to
have been signed or issued by the International
Red Cross or a member thereof, or by a doctor
of medicine or any medical service personnel, or
by an investigator or intelligence officer, or by any
otlier person who appears to the Tribunal to have
personal knowledge of the matters contained in
the report.
364
DEPARTMENT OF STATE BULLETIN
(3) An affidavit, deposition or othei- signed
statement.
(4) A diary, letter or other document, includ-
ing sworn or unsworn statements which appear to
the Tribunal to contain information relating to
the charge.
(5) A cojjy of a document or other secondary
evidence of its contents, if the original is not im-
mediately available.
(d) Judicial Notice. The Tribunal shall not re-
quire proof of facts of common knowledge, nor of
the authenticity of official government documents
and reports of any nation or of the proceedings,
records and findings of military or other agencies
of any of the United Nations.
(e) Records, Exhibits and Documents. The
transcript of the proceedings, and exhibits and
documents submitted to the Tribunal, will be filed
with the General Secretary of the Trilinnal and
will constitute part of the Record.
Article U. Place of Trial. The first trial will
be held at Tokyo and any subsequent trials will
be held at such places as the Tribunal decides.
Article 15. Course of Trial Proceedings. The
proceedings at the Trial will take the following
course :
{a) The indictment will be read in court unless
the reading is waived by all accused.
(h) The Tribunal will ask each accused whether
he pleads "guilty" or "not guilty."
(<:' ) The prosecution and each accused may make
a concise opening statement.
{d) The prosecution and defense may offer evi-
dence and the admissibility of the same shall be
determined bj' the Tribunal.
{e) The prosecution and counsel for the ac-
cused may examine each witness and each accused
who gives testimony.
(/) Counsel for the accused may address the
Tribunal.
((/) The prosecution may address the Tribunal.
{h) The Tribunal will deliver judgment and
pronounce sentence.
JUDGMENT AND SENTENCE
Article 16. Penalty. The Tribunal shall have
the power to impose upon an accused, on convic-
tion, death or such other punishment as shall be
determined by it to be just.
Article 17. Judgment and Review. The judg-
ment will be announced in open court and will give
the reasons on which it is based. The record of
the trial will be transmitted directly to the Su-
preme Commander for the Allied Powers for his
action thereon. A sentence will be carried out in
accordance with the order of the Supreme Com-
mander for the Allied Powers, who may at any
time reduce or otherwise alter the sentence except
to increase its severity.
Disposition of Manchurian Enterprises
Statement issued on Marvli 1 l>ij Michael J. Mc-
Dernwtt, S-pecial Assistant to the Secretary for
Press Relations, in connection with alleged reports
regarding the removal hy the Soviet Government
of so-called ^^war booty" from Manchuria
We have no agreement, secret or otherwise, with
the Soviet Government or any other g((vernment
in regard to "war booty" in Manchuria. This
Government does not accept any interjaretation of
"war booty" to include industi'ial enterprises or
the com])onents thereof, such as Japanese indus-
tries and eciuipment in Manchuria. Some time
ago we informed the Soviet Govermneut that tlie
disposition of Japanese external assets, such as
the industries in Manchuria, is a matter of com-
mon interest and concern to those Allies who bore
the major burden in defeating Japan, and that it
would be most inappropriate at this time to make
any final disposition of Japanese external assets in
Manchuria either by removal from Manchuria of
such industrial assets as "war booty" or by agree-
ment l)etween the Soviet and the Chinese Govern-
ments for the control of those assets. This Gov-
ernment has recently initiated discussions with
other governments princiiJally concerned with
reparations from Japan with respect to the final
disposition of Japanese external assets.
MARCH 10, 1946
365
Excerpt from Basic Postulates and General
Themes for German Propaganda Abroad
No. 20: DIRECTIONS FOR PROPAGANDA TO ENGLAND v
(laid down undei' date of 11-2-42)
m
Ten phases of the catastrophic policy of ChurchUl:
1. Churchill was already one of the chief war
criminals at the outbreak of the last World War,
and his military incompetency was demonstrated
then in the British defeat at Gallipoli. In the first
World War Britain already lost her position as
sole mistress of the seas, and with it her unchal-
lenged domination of the world.
2. Adolf Hitler has always offered German
friendship to Britain, and an alliance for the
maintenance of the British Empire. Churchill
refused this policy and brought on the war against
Germany. By his guarantee to Poland Churchill
placed the decision as to Britain's entry into the
war in the hands of a few Polish adventurers who
did not want to give Danzig back to Germany.
3. Churchill declared war on Germany because
his friends, the British and American capitalists,
Jews, and industrialists, were worried lest the suc-
cesses of the National Socialist economic and social
policies would open the eyes of their peoples as to
the true reasons for their poverty. Besides, the
ruling classes of Britain and America needed a
war for their great arms and munitions industries.
4. What were the results of the Churchillian war
policy in Europe?
(a) Militarily: The greatest defeats of British
history — Andalsnes, Dunkirk, Greece, Crete;
(&) Politically: Britain lost all her friends on
the Continent. Her allies, Norway, Holland, Bel-
gium, France, Yugoslavia, and Greece, and con-
quered by the German and Italian Armies; and
the other friends of Britain went over to the side
of the Axis. Today British influence has been
entirely thrown out of Europe, and Europe herself
is united against Britain.
5. After Churchill lost the Eui'opean nations as
allies through his mistakes, he committed the
greatest crime of his life when he allied himself
with Bolshevist Moscow. The German Army, with
its allies, Italy, Rumania, Hungary, Slovakia, and
the volunteer contingents from Spain, Croatia,
Holland, Belgium, Denmark, Norway, and France,
as well as the Finnish Army, prevented the inva-
sion of Europe by the Bolsheviks, and threw them
back to the gates of Moscow. Thereby over ten
million able-bodied Russian men were killed or
captured, and enormous quantities of Russian war
materiel were seized or destroyed. The German
Army still stands after two winters on a strong
front from Leningrad to the Sea of Azof. Stalin's
winter offensives against the German Army have
been shattered. The main reserves of men of the
Soviet Union, which had to call up the 18- and 50-
year-old classes several months ago, have been
used up. Stalin is in no position to replace these
losses. But the German Army with its allies,
whose losses by contrast have been kept within ex-
traordinarily modest limits during the War, will
attack the Soviet forces again and again, and de-
stroy them. Churchill and Eden went to Moscow
to promise the delivery of Europe to the Bolshe-
viks, in exchange for his services in the War and
the continuation of his sacrifices of blood. In Brit-
ain itself Churchill had to give free rein to the
Bolshevik agents in their propaganda directed to
the British trade unions. Already Maisky plays
in labor circles the role of the future uncrowned
king of a Bolshevik Britain.
6. As long ago as the time of Chamberlain,
Churchill conspired with Roosevelt against his own
Prime Minister, and made himself the tool of
Roosevelt in incitement to war against Germany.
At the same time Roosevelt prevented England
from accepting the peace offer of the Fiihrer after
the French debacle, and Churchill was his hench-
ZuxammrnxleUinuj der Standarilthesen und Richtlinien
fiir (lie DcutM-he AuHlumlspropaganda (nur fiir den
Dieiistgehruuch ).
366
DEPARTMENT OF STATE BULLETIN
man in this. Churchill has been driven by his fail-
ures into complete subservience to Roosevelt, the
principal war criminal. Churchill has woi-ked
hand in glove with Rooseveltian Yankee imperial-
ism without any restraint in the hope of later help
in munitions. For Roosevelt he declared a war to
the death with the Axis. For Roosevelt he of-
fc^ended and enrajjed the Japanese. For Roosevelt
m> sent the best British ships, the Prince of Walef<
;id Bepulse to Singapore, and lost them there,
^ /hereas Roosevelt has exacted heavy sacrifices
from England for his promises of assistance. The
acquisition of British naval bases in America by
the U. S. A., the occupation of Greenland and Ice-
land by Roosevelt, the acquisition of British prop-
erty, capital, and other monies in the U. S. A. were
oidy the first robberies of British possessions and
wealth. Roosevelt desires to bring the British
Empire bit by bit into American possession and
thus to take over Britain's heritage in the world.
This has been Roosevelt's plan for a long time, and
Churchill, half-American by birth, is his hench-
man in this.
The landings of American troops in Great Brit-
ain are only a means for Roosevelt to keep Britain
in subjection. These troojis are nothing else but
the first American policemen in the British Isles,
who will see to it that the Englishman continues
the war for America and surrenders the last penny.
7. The war between Britain and Japan is en-
tirely Churchill's fault. Because British policy
turned out, through Churchill, to be in complete
dependence on the U. S. A., Churchill had to take
part willy-nilly in Roosevelt's provocative policy
toward Japan. His blank check to Roosevelt per-
mitted the latter, through a policy as insulting as
it was stupid, to provoke Japan to war, and was
thus an authorization of Japan's attacks against
Britain and the United States in East Asia. The
defeats in the Pacific and East Asia are thus the
direct result of Churchill's lack of foresight. Be-
cause of the victory of the Japanese at Pearl Har-
bor and the sinking of the Prince of Wales and
the Repulse, the domination of the Pacific and
Indian Oceans has been lost by Britain and
America to tlie Jai)anese. The loss of Hong Kong
and the Philipi)ines, the agreements of the Jap-
anese with Indochina and Siam made possible the
seizure of Malaya, Singapoi'e, Burnni, and the
Netherlands East Indies. Tlie material losses of
the Biitish in the areas seized by the Japanese are
considerably more than a thousand million pounds
sterling.
8. The loss of domination of the sea and air, and
the territorial losses in the East Asiatic region are
exclusively the results of Churchill's war policy.
All these British possessions are once and for all
irrevocably lost, in addition, the seizure of
Burma means the coup de grdce for Chiang Kai-
shek by the closing of the Burma Road. Through
Japanese control of this area, the British Dominion
of Australia, as well as the pearl of the British
Empire, India, are not only threatened, but are
in danger of being finally lost to England. India
is the essence of the British Empire, and without
India there will be no British Empire.
!). A united Europe under the leadership of the
Axis, and Japan with lier allies in East Asia stand
in two firm compact blocs against Britain and her
widely dispersed allies. They form a combination
of powers such as, for fighting strength and out-
standing strategic position, has never been seen
before. This combination is invincible. It forces
the British and Americans to scatter their forces
over all the oceans. But even before the attack
of Japan tlie British and their followers had lost
over 15 million tons (BRT) of shipping space.
Submarine M-arfare has been extended to all the
high seas of the world by the attack of Japan.
Today tonnage losses have mounted to 30 million
tons ( BRT) . Even the combined Anglo-American
fieets cannot stretch out far enough for the prepa-
ration of operations extending throughout the
world. Thus U-boat warfare must lead to such
losses for the British and Americans that no ship-
building program in the world can make them
good. The necessity of carrying on war over tens
of tliousands of sea miles with an ever-decreasing
tonnage means inevitable paralysis for the British
tactic of carrying on war by sea.
10. Churchill's war has led directly to the gen-
eral im]ioverishment of Britain. Not only the
ujjper and middle classes, but also the British
workers are becoming poorer with every day the
war lasts. Always in Britain millions are hungry
who have become an easy prey to Bolshevist agi-
tation and propaganda because of the agreements
with Churchill. Bolshevist agitation can develop
all the more fi'eely from interference, because at
the head of the Bolshevist envoys in London stands
Maisky, to whom Churchill must give free rein for
fear of a Soviet withdrawal from the war. Wliile
MARCH 10, 1946
367
the German people has had its revolution and has
become immune through the new social order of
Adolf Hitler to all foreign revolutionary propa-
ganda, the British people still has its revolution
ahead of it. Churchill's war is liquidating democ-
racy in Britain. The end result can only be general
impoverishment and the triumph of Bolshevism
in Britain.
Conclusion :
Ever since the beginning of the war Churchill
has lost one possession after anotlier. Churchill
unleashed the war against CJermany and Italy and
thereby lost his influence everywhere in Europe.
He unleashed the war against Japan and thereby
lost his dominating position and all his possessions
in East Asia. He staked the heart of the Empire,
India. His policy of hate and unreason turned out
to be complete dependence on Roosevelt, and he is
no longer in a position to grant still fui'ther im-
portant possessions of the British Empire to the
U. S. A. His policy is leading to the Bolsheviza-
tion of England. He is a military amateur, a
politician without scruples and a Jonah {Pech-
vogel) who bungles everything he touches. The
disastrous motto on the escutcheon of his ances-
tors, "Confident but unlucky," has become true in
a sense other than that intended. Churchill is the
gravedigger of the British Empire.
Complementary Directive for the Handbook of
"Instructions for Propaganda directed to Britain
by Radio"
(laid dow)i uikU'I- date of 10-3-12)
1. The peace offers of the Fiihrer should be
cited in order to emphasize especially by whom and
in what words these offers were refused. The fol-
lowing offers are particidarly pertinent:
{(i) After the re-occupation of the Rhineland,
the Fiihrer brought forth a comprehensive peace
plan in a memorandum of 31 March 1936, which
proposed among other things :
1. Equal rights for all European states;
2. The creation of a tranquilizing security zone
on each side between Germany and the Western
Powers ;
3. An agreement on aerial matters {Luftpakt) ;
4. A pact for the purification {Entgifttmg) of
public opinion between Germany and France;
5. The conclusion of non-aggression treaties
with Czechoslovakia and Poland;
C). The creation of an international court of
arbitration and the recommencement of disarma-
ment negotiations as well as the limitation of the
use of certain instruments of war.
The answer was the notorious questionnaire
(Frageboc/en) of the British Foreign Secretary
Eden of 6 May 1!)36, which evaded the German
proposals in a manner insulting to German policy
and made further negotiations impossible.
(i) On September 30, 1938, after the Sudeten
crisis, the Fiihrer, together with Neville Chamber-
lain, signed a Declaration in Munich, in which it
was declared that the Anglo-German Naval Agree-
ment was symbolic of the desire of both people
never to go to war against each other again and
in which it was expressly stated that in the future
both countries would settle all differences of opin-
ion which might occur {alJe etwaigen Meimings-
verschiedenheitcn) according to the method of
consultation. The general British reaction to this
agreement was an unheard-of agitation against the
Fiihrer and an accelerated rearmament of Britain.
(c) In the Fiihrer's speech before the Reichstag
of 30 Januai-y 1939 he declared that (iermany had
no territorial demands against England and
Fi-ance. However much a solution of this question
would contribute to the pacification of the world,
yet there were no problems concerned here which
could demand a military solution {kriegerische
Aiiseinander»etzmig). The British Parliament
and Press refused anj' discussion of the colonial
question.
{d) On the eve of the outbreak of the Polish
camjjaign (Krirg) the Fiihrer transmitted still an-
other comprehensive offer for a German-British
understanding to the British Ambassador on 25
August 1939. In it the Fiihrer declared that he
had always been inclined to an Anglo-Germfin
understanding. A war between England and Ger-
many could lead under the most favorable circum-
stances to a victory for Germany, but never for
England. He was ready personally to agree to
the maintenance {Bestand — integrity?) of the
British Empire, if the modest German colonial
claims would be fulfilled and the obligations vis-
a-rix Italy renniined vnulisturbed. The answer
of Britain was the granting of formal carte blanche
to Poland, which made a peaceful solution of the
German-Polish question imjjossible.
(e) After the defeat of Poland the Fiihrer made
a renewed peace offer in his Reichstag speech of 6
368
DEPARTMENT OF STATE BULLETIN
October 1939. He proposed to bring about the
settlement by a peace conference of the questions
arising out of the partition of Poland and the
problem of those international troubles which bur-
den the political and economic life of the nations.
The British Prime Minister cynically refused any
discussion of the German proposals in a speech
before Commons on 12 October 1939.
(/) After the defeat of France the Fiihrer again
offered a renewed peace in a speech of 19 July
1940. The Fiihrer declared that he felt himself
in duty bound at that time to direct once again an
appeal to reason in England. He saw no reason
which required the continuation of the war. The
British Foreign Secretary Lord Halifax sharply
refused the oifer of the Fiilirer in a radio speech
of 21 July 1940.
By any evaluation of the foregoing points, it is
demonstrated again and again that an acceptance
of the offers of the Fiilirer would have given a dif-
ferent turn to world history and the present war
would not have broken out, or would at length have
come to an end.
2. It is to be pointed out over and over again
that the Britain of Churchill seized the first ex-
cuse for a war, because the Fiihrer wanted to bring
the City of Danzig back into the Reich. It is
almost inconceivable today that Britain brought
on this war because Germany, as the result of a
fiee plebiscite (Absfhnmtotr/) desired to bring the
German City of Danzig back into the Federal
Union {Reichsverband) , and to build a motor
highway through the Corridor. Posterity will
never understand why Britain gambled the fate
of the whole British Empire because of the Ger-
man-Polish question, which touched her interests
in no way.
3. It is to be pointed out over and over again,
that Roosevelt is the chief instigator of the war,
whom the British have to thank for all their suf-
fering. Roosevelt enticed the British again and
again into new actions and caused the war to con-
tinue by arousing false hopes in the British. The
hopes aroused by Roosevelt have brought Eng-
land nothing but lenewed losses and obligations to
carry on the war. America is already inheriting
the British military bases on the American coast,
economic domination of Canada, and the military
control of Australia and New Zealand. And the
occupation of Greenland and Iceland, and the in-
cipient occupation of North Ireland and parts
of Africa by Roosevelt are directed against the
British interests, because with them the sea routes
to North and South America, as well as to South
Africa pass under American control. Roosevelt
wants to take possession of the British Empire
bit by bit, and thus to take over the legacy of
Britain. Roosevelt, as a former Naval Secre-
tary, has seen to it that the U. S. A. came into the
first World War only after Britain had yielded her
claim to domination of the seas. By means of the
second World War, which was induced by him,
Roosevelt hopes to make the entire British Empire
colonies of America.
4. It is to be pointed out over and over again,
that this war has brought Roosevelt all the ad-
vantages, and the disadvantages and losses to the
British. Up to now the British have lost in this
War:
{(i) Their American bases, their East Asiatic
bases, Singapore, Malaya and Burma. England's
ally Holland lost Sumatra, Borneo, Celebes and
Java, all her East Asiatic possessions.
(b) Parity of fleets with the United States. In
spite of the heavy blows it suffered at Pearl Har-
bor, near Java, in the Solomon Islands and the
Coral Sea, the American Fleet is already now
significantly stronger than the British Fleet as a
result of the enormous British losses. As a result
of the continuation of the War, the British Fleet
must necessarily sink to second rank as compared
with the American Fleet.
((?) Economically, the British have lost all their
investments and capital in America. Their val-
uable possessions, in Southeastern Asia to the tune
of over a billion pound sterling have been lost to
them as a result of American reprehensible actions
toward the Japanese. Further, they have already
lost the bulk of their markets in South America,
Africa, and India to American exporters.
{d) Because of her loss of revenues from the
rubber and tin enterprises, Britain loses 300 mil-
lion dollars in foreign exchange income, which
formerly eased for Britain the balance of payments
with America. By this loss Britain is definitely
sinking into American finance-slavery.
These processes are only continuing what was
already happening in the last War. Exactly as in
the World War, it can be stated that the British
are paying for the War again, while the Americans
are profiting by it.
MARCH 10, 1946
369
5. Tlie uselessness for Eujilaiul of continuing
this war is to be jiointed out. Britain has not
become equal in any way to the C(jnibiiiation of
Powers joined in the Tri-})artite Pact. She is
separated from her Allies. America and Soviet
Russia, by oceans, oceans which slie cannot bridge
with her ever dwindling fleet, due to sinkings by
German. Italian and Japanese submarines. Wliile
her ally, Soviet Russia, stands on the brink of
annihilation, Japan has gathered in her East Asi-
atic possessions and bi'ought otliers under her
control. After the seizure of Burma and Java,
Japan threatens India by land and sea, and there-
with the rearward routes to Egypt, and can now
proceed to the seizure of India. Australia and New
Zealand; and Britain can offer no resistance to
this in the long run. Chiang Kai-shek has been
cut off from supplies of Anglo-American war
materials by the closing of the Burma Road. The
Stilwell Eoatl (lit. frans. Assam Road) does not
exist. American assistance in the Pacific has
proved itself ineffective. Thus Britain, cut off
from her most valuable possessions, is pi'oceeding
to inevitable defeat. The continuation of the war
serves the purpose only of the Americans, who by
endangering the British Empire ever further, gain
more opportunities to take over the crumbling-
pieces of file British Empire, while Britain sinks
into complete dependence on the United States
because of her impoverishment. Thus the jiosition
of Britain is already so grave that it is becoming
more hopeless with every day the war drags on.
6. The danger to England which the alliance
with the Bolsiieviks entails should always be
pointed f)ut. It should always be repeated that
the Bolshevik system is the mortal enemy of the
British way of life, and that the entrance of Bol-
shevism into the British Empire entails the insur-
rection of colonial ])eoi)les and therewith the final
destruction of the world-wide Empire. Suspicion
of Bolshevism by examples from Bolshevist life
should be aroused and heightened. The British
wife should be made to realize that in the Bolshevik
system there is no marriage in the Central Euro-
pean sense; the pious Englishman should be made
to realize that in the Soviet system belief in God
is punished with death and that in truth religious
tolerance is not practiced in the Soviet system.
One should indicate the particular dangers which
grow out of the activities of the "parlor pink"
{SaloiiboJxcheuusten) Cripps and Maisky, the
Soviet Ambassador in London. And in this rela-
tionship one should point to Lenin's will, which
indicated the abolition of the British Empire as
the holiest duty of every Bolshevik.
7. One should watch most carefully to make
sure that always only undeniable facts should be
used in the propaganda. Further, one should
avoid demanding of the individual Englishman
deeds and actions which go against his pati'iotic
feelings. Historical parallels with the World War
and its consequences for the British are especially
(bevoizugt) to be employed.
Crime Against the Jews
Under Hitler
STATEMENT BY THE PRESIDENT
In the trial of war criminals at Niirnbergthe fact
luis been established that 5,700,000 Jews perished
imder the murdeious reign of Hitlerism. That
crime will be answered in justice.
There are left in Euroi)e 1.500,000 Jews — men,
women, and children — whom the ordeal has left
luimeless, hungry, sick, and without assistance.
These, too, are victims of the crime for which retri-
bution will be visited upon tlie guilty. But neither
the dictates of justice nor that love of our fellow
man which we are bidden to practice will be satis-
fied until the needs of these sufferers are met.
Appointment of Major
General Hilldring as Assistant
Secretary of State
The White House announced on February 27
the a])pointment of Maj. Gen. John H. Hilldring
as Assistant Secretary of State. It was said that
no legislation will be needed for the General to
retain his status because he will soon retire from
the Army.
The statement by the president was released to the press
by the AVhite House on Feb. 2."). the announcement of the
appointment of Major General Hilldring on Feb. 27.
685890—46-
370
DEPARTMENT OF STATE BULLETIN
Far Eastern Commission
SUMMARY REPORT ON TRIP TO JAPAN
ENCLOSURE "A": ITINERARY
I. General Statement
1. The Far Eastern Commission left Washing-
ton on tile evening- of 'li'i December 19-±5, in two
special C'-.")4 planes furnished by the Air Trans-
port C'onuuand. After a byef stop-over at Hamil-
ton Field. C'alifoinia. tiie Conunission arrived at
Hicivluini Field tiie evening of December 28, 19-15,
wliere it was received by General Lawton, Acting
Chief of Staff for Rear Admiral M. F. Sclioeffef,
reprtsenting A(hniral Sprnance. CINCPAC, Gen-
eral Richardson, Commanding General JNIidPac,
and tlie members of General Richardson's staff.
The C'onnnission embarked the evening of the
same day on the U. S. S. Mt. McKinJet/, Command-
ing Officer Captain Wayne Gamet. and sailed for
Japan from Pearl Harlior at OTOO the morning of
December 29.
2. After 10 (htys en route, the Conunission ar-
lived at Yokohama at noon on Wednesday, Janu-
ary 1), l!)4(i, wlieie it was met by Major Gen. W. F.
Marquat on l)elialf of the Supreme Conunander for
tlie Allied Powers. After discluirging oil in or-
der to adjust trim, the sliip proceeded over the bar
the following morning and tied up alongside the
dock at Shiba-Ura, Tokyo.
3. During the 23 days of its stay in Japan the
Conmiissiim lived aboard ship and used as head-
quarters ashore special offices whicli had been ar-
ranged for it in tlie Dai Ichi building, where GHQ
was housed.
4. The Chief Delegates had an initial luncheon
and meeting with General MacArthur on Thurs-
day, January 10, a second meeting with General
MacArthur in his offices on Tuesday. January 2'.>,
and invited hiin and Mrs. MacArthur for lunch
on board tiie sliip on Wednesday, January 30.
T). Tiie bulk of the Commission's activities in
Japan consisted of conferences witii various sec-
Memorandum for Iiifonnatinn No. 22, dated Feb. 25.
Encldsnre "< '" (if |)re.ss relea.ses. Kiiclosure "D" of bibliog-
raphy, and Enclosure "E" of personnel not printed lit'rein.
For roster of Commission personnel on trip to .iiipiin see
r.ui.i.KTiN of Dec. 30. WA^h p. 10.-).'i.
tions of the Supreme Commander's General Head-
quarters. In addition, there were several trips
made to varit)us sections of Japan when oppor-
tunity was given to inspect local conditions and
to (>onfer with local military authorities as well
as local Jai)anese officials.
G. At the conclusion of a special meeting with the
Commission on tlie subject of Hokkaido. Lt. Col.
Spillers, Ciiief, Forestry Division, Natural Re-
sources Section, SCAP, presented the Commission
with a carved basswood bear from Holvkaido. The
carving liad been made by tlie Ainus, aborigines of
the island, and has become the centerpiece for
tlie Cominissioirs conference table, as a nieinento
of its visit to Japan.
7. The Commission acquired a great many docu-
ments in the course of its meetings with the staff
sections of SCAP, and these are listed in enclosure
"C". These were distributed to the Commission
while in Japan, if received in sufficient quantity,
or are on file in the secretariat, in case of items
of which only one copy Avas received.
8. The Commission made a final visit to the
Eiglith Army Headqntirters in Yokohama and to
the Naval Command in Yokosuka on Thtirsday,
January 31, prior to embarking on the Mf. McKin-
ley the evening of that day. The Mt. McKinJey
sailed from Yokosuka at 0700 on February 1 for
Pearl Harbor.
!). After 11 days at sea, the Commission arrived
at Pearl Harbor the morning of February 11 and
left for San Francisco and Washington from Hick-
ham Field the evening of February 11. The Com-
mission arrived in Washington the morning of
February 13.
[Here follows "II. Detailed Itinerary"]
ENCLOSURE "B": SELECTED COMMUNICATIONS
I. General Exchanges Between the Commission
and General MacArthur
1 Janiianj lOIfG
(ieneial of tlie Army Douglas MacArthur
Supremt' Coiumander for the Allied Powers
Stipreni e H ead quarters
MARCH 10, 1946
371
New Yejir's greetings to you from the Far East-
ern Commission enroute Japan, witli wishes for
continued success in tlie difficult task of occupation
and administration whicli you have conducted so
admirably and for which the United Nations, par-
ticularly those in the Far East, will be forever
deeply indebted.
For the Far Eastern Commission
Nelson T. Johnson
Secretary General
3 JanvMry 19Jt6
Pass to Secretar_v General Nelson T. Johnson.
Many thanks to the Comnussion for its cordial
message. I am looking forward with anticipation
to its arrival in Tokyo.
M.4cAbthur
-'i -hnmary 19Jf6
General of the Army IMacArthur
Supre??ie Commander for the Allied Powers
Supreme Headquarters, Tokyo
From McCoy, Chairman, FEC
1. Believing it would be helpful to you and your
staff in meeting the dcsii'es of the Commission for
information relating to its work, the Commission
forwards herewith the following list of subjects
which have been allocated to committees of the
Commission for study and on which it would ap-
preciate information as soon us practical upon
arrival.
(a) Social and Economic Problems
(b) Constitutional Reform
(c) War Criminals
(d) Aliens in Japan
(e) Strengthening of Democratic Processes
2. With reference to category a above, Social
and Economic Problems, the Commission would
especially appreciate detailed information (wliich
is no doubt already available or in preparation)
on the following:
(a) Agriculture and Other Forms of Primary
Production
(6) Industrial Capacity, Organization, and
Production
(c) Financial Structure, Japanese Assets, and
Statistical Position of Japanese Banks
(d) Labor Conditions.
(e) Communications and Transportation
(/) Shipbuilding
(g) Present Status of Interest, Assets, and
Rights of All United Nations and Their Nationals
in Japan
3. For your information and as an appendix to
this message, the Commission is forwarding its
tentative hmg-term agenda, which will indicate
in a comprehensive way the scope of its interest.
Appendix: (Tentative) Long-Term Agenda for tlie
Commission FEAC-10/2, November 9, 1945
1. Basic Policies and Objectives in regard to
Japan
2. Social and Economic Pnjblems
(a) Extent and character of Japanese indus-
try, commerce and agriculture necessary for a vi-
able economy in Japan
(b) Measures necessary to establish such an
economy
(1) Regulation of Jajjanese foreign conunerce
(2) Control of agriculture
(3) Control of fishing and aquatic industries
(4) Control of transportalion and conununica-
tion
(5) Control of industry
(<■;) Adjustment of system of hind tenure
{(l) ()wnerslii[) and Jaimnese industry, finance,
and commerce
3. Reduction and Control of Japanese War
Industry
((/) Armament production
{b) Heavy industry
(c) Aeronautical industry
(d) Merchant shipping
(e) Shipbuilding
(/) Reconversion of other wartime industry to
peacetime purposes
if/) Long-range control of rearmament
( /i ) Ct)ntrol of scientific and industrial research
4. Restitution and Reparation
(a) Seizure and disposition of Japanese over-
seas property and investments
(b) Reparations: goods and materials, mer-
chant sliijJs, factory installations, Japanese patents
and scientific processes
(c) Use of Japanese labour by Allies
{d) Measures necessary to safeguard the in-
terests of the United Nations and foreign assets
in Japan
(e) Restitution of looted property, including
objects of historical, cultural, and artistic value
.i. Constitutional Reform
(ff) Emperor
372
DEPARTMENT OF STATE BULLETIN
(b) Diet
(e) Cabinet
(d) Local government
((') Political parties
(/) Civil liberties
(g) Machinery for drafting new constitution
G. War Criminals
7. Aliens in Japan
((/) Enemy nationals other than Japanese
(h) Koreans
{>■) Allied persons desiring repatriation
(r/) Allied persons who have collaborated with
the Japanese
(') Neutral nations
(/') Relation of non-Japanese civilians to Jap-
Muese authorities
iS. Strengthening of Democratic Processes
(a) Positive policy in the reorientation of the
Japanese
(b) Educational system
(r) Control of public information — the press
and radio
(d) Workers' and peasants' organizations
(e) Civil liberties
(/) Purging of militarist and totalitarian ele-
ments
(ff) Dissolution of secret and other undesirable
societies
(h) Reform of police system
(?■) Imi^roving the status and role of women
(i) State Shinto
9. Disarmament and Demobilization
{(i) Processes of disarming and demobilizing
(b) Disposal of arms
(c) Policing and inspection of disarming
(d) Disposal of Japanese fleet
{(') Disposal of Japanese aircraft, air fields, etc.
(/') Employment of discharged Jajjanese serv-
icemen
{g) Treatment of Japanese ex-officers
10. Relief Problems in Japan
[a) Prevention of mass unemployment
{b) Public health
{(') Food
(d) Housing
(e) Repatriation of Japanese from overseas
territories
11. Financial Problems
12. Organization of Allied Control and Military
Government in Japan
13. Conditions under which Japan may be ad-
mitted to membershii) in tlie United Nations Or-
'ganization
1-t. Other Matters Raised by Member Governments
7 January 191^6
For General Frank McCot
Major General William F. Marquat will meet
you on arrival in Yokohama, with a tentative
agenda and program which can be modified as
may be desired. Every facility will be given to
individual members to make such informal con-
tacts with the Japanese as they wish and all side
tri})S that you may have in mind can be readily
arranged. I am sure that you have no concern as
to the entire purpose of this Headquaiters will be
to facilitate the work of the Commission. All data
that we have is of course available to you and I
believe it will be quite adequate for your purpose.
I would like to have the 10 members of the Com-
mission. INIrs. McCoy and Secretary Johnson take
their first meal ashore with me and have asked
Marquat to arrange the matter with you. It is
hardly necessary to add my warmest welcome to
you all.
MacArthur
1 February 1946
General of the Army Douglas MacArthur
Supreme Allied Com/mander
Tokyo, Japan
On its departure from Japan the Far Eastern
Commission sends you its good wishes for the
future and its thanks for all that you and the forces
under your command have done to make its visit
so profitable.
Frank McCoy
Chairman
3 February 19^6
Message for General McCot
Thanks for your message. May you all have a
safe and pleasant journey home.
MacArtiiltr
II. Exchanges Between the Commission and the
Washington Office Regarding Soviet Participa-
tion on the Commission
6 January 191(6
1. The Commission received the Terms of Ref-
erence of the new Far Eastern Commission which
MARCH 10, 1946
373
had been agreed at the meeting; of the Foreign
Ministers held at Moscow. A meeting was held
and the following agreed message was sent to the
Commission's office in Washington :
"You may inform tlie Soviet Embassy tliat the
Chairman and members of tlie Far Eastern Ad-
visory Commission would welcome participation
by the Soviet representative apjjointed to the Far
Eastern Commission and his assistance in the
studies and the work of the Far Eastern Advisory
Conunission pending the organization of the Far
Eastern Commission."
2. A few days later, advice was received from
Washington that the United States had sent the
following message to all governments concerned
witli the Far Eastern Commission :
"It is the view of this Govei-nment that the Far
Eastern Commission succeeded the Far Eastern
Advisory Commission on 27 December, the date
of the Moscow Communique, and that there is no
need to implement this succession by formal dis-
solution, inauguration or other formalities."'
This position was based on tlie desire to free
the Commission from confusing and burdensome
i:)rocedural detail.
3. As a consequence of tlie message quoted in
paragraph 2 above, the message to the Soviet Gov-
ernment as proposed by the Commission in para-
graph 1 above was altered to read as follows :
"... and the work of the Far Eastern Ad-
visory Commission, pending t.he erganizatioa e^
the Fiw Kttstettt'^eiftfttissieft pending their return
to the United States.''
4. On January 23, advice was received from
Washington that the following response had been
received from the Soviet Government :
"The Soviet Government considers that it is time
to proceed to tlie realization of tlie decision of the
Moscow Conference of the three foreign Ministers
on the establishment of a Far Eastern Commis-
sion and, for its part, also believes it expedient
in the interests of matters at hand to keep to a
minimum the procedural details connected with
this.
"At the same time the Soviet Government be-
lieves it necessary to draw to the attention of the
Government of the United States that in the de-
cision of the conference of the tlii'ee foreign min-
isters it is stated that the Far Eastern Commission
being formed will replace the Far Eastern Advis-
ory Commission and that the Government of the
United States, on behalf of the four powers,
should present the terms of reference to the other
governments specified in Article I and invite them
to participate in the Commission on the revised
basis. Thus it does not follow from the decision
of the conference of the three Ministers that the
Far Eastern Commission with its former commit-
tees, rules, etc., will be automatically transformed
into the Far Eastern Conunission.
"The Soviet Government assumes that as soon
as the members of the Far Eastern Advisory Com-
mission retur'n from Japan to Washington, the
Government of the United States will take meas-
ures to convene an organization session of the Far
Eastern Conunission so that the latter may with-
out delay begin to function on the basis of the
decision of the three Ministers. (This portion
was garbled and is now being serviced.) The
U. S. Government has referred the Soviet view to
the British and Chinese Governments, stating
further 'That this Government desires to cooper-
ate in expediting full functioning of the Com-
mission and that it is willing to follow any rea-
sonable procedure agreeable to its allies.' "
Nelson T. Johnson
Secretary General.
III. Exchange Between the Commission and Gen-
eral MacArthur Regarding Allied Participation
in SCAP
7 Fehmari/ 19J,6
General MacArthur
Supreme Commander for the AlVieel Poioers
Sup rem e Headqueirters
Tokyo. J II pan
From McCoy
During the Commission's recent visit to Japan
we noted that you would welcome the collaboration
of allied experts and advisors in the several fields
of activity of your services in your capacity of
SCAP. After consideration of this matter by the
delegations, it has been suggested that before pro-
ceeding further with it, members of the Commis-
sion would be grateful for your views and advice
on the following questions as to what would be the
status of such allied personnel :
1. Should they be integrated in SCAP or em-
ployed as advisors?
374
DEPARTMENT OF STATE BULLETIN
2. In the latter case -would they be as we sup-
pose subject to existing organization of command
and discipline?
3. Wliat would be the conditions of their en-
gagement? Nature and duration of contract?
Scale of remuneration and by whom payable?
Food and lodging? Possibility of bringing fam-
ilies?
4. What sections are wanting experts and on
what subject?
5. How and where should application be made?
S February lOJfi
For General Frank McCoy
1. They should be integrated into SCAP sec-
tions in contradistinction to employment as ad-
visors. Latter not desired and would serve no use-
ful purpose.
2. If in civilian status conditions of engage-
ment nature and duration of contract should be
comparable to that of American employees except
that salary basis would be determined by govern-
ment concerned. Present length of American con-
tract is one year. If in military status length of
assignment should conform to policy of govern-
ment concerned.
3. Scale of remuneration and payment to be by
the government concerned.
4. Food and lodging to be supplied by mission
or comparable agency in Tokyo of government con-
cerned. The same privileges would be extended
dependents as contemplated for American em-
ployees chief factors being availability of quarters.
.5. Practically all sections and subjects could
utilize experts. Applications should be submitted
as determined by governments concerned for ref-
erence to this headquarters.
MacArthur
IV. Exchange Between the Commission and Gen-
eral MacArthur Regarding Axis Nationals in
Japan
7 Fehntnrij 19^6
General MacArthur
Supreme Commander for the Allied Powers
Supreme Tlendquarters
Tokyo^ Japan
From General McCoy
Towards the end of the Commission's stay in
Japan, it came to the notice of several of its mem-
bers that some 2500 Axis nationals, chiefly Ger-
mans, are still enjoying a standard of living much
superior to that of many Allied nationals remain-
ing in Japan and are said to be still exercising
an influence hostile to Allied purposes. The Com-
mission lacked time to enquire as to what action
had been taken or contemplated in regard to these
people. It would therefore be helpful if the Com-
mission could be advised on this subject. The
foregoing naturally does not apply to persons
formerly exposed to political racial pei'secution.
18 Fehrwnj 19^6
Prior to the occupation the German Economic
Mission here purchased with German government
funds food stores which temporarily placed Axis
nationals in more favorable position than other
foreign nationals. However, upon discovery, ac-
tion was immediately initiated to correct this sit-
uation. German government and Nazi funds have
been impounded and all German private property
is blocked, subject to living expense allowance of
¥1500 per month for head of family and ¥500 for
each dependent. Such restrictions on Axis na-
tionals do not apply to any other foreign nationals
residing in Japan. No indication that they are
exercising influence inimical to Allied purposes.
These nationals have been classified as to political
affiliations. Party leaders and certain diplomats
have been incarcerated and remainder restricted
to certain areas or jjrefectures under Japanese po-
lice cu.stody and American Counter Intelligence
Corps surveillance. Further instructions have re-
cently been requested from Washington concerning
treatment of German property. Negotiations are
in progress with Office Military Goveniment for
Germany (United States) with concurrence of
War Department for the early repatriation of
these nationals. There is no basis for concern by
the Commission.
Appointment of Randolph
Paul as Special Assistant to
the President
The AVhite House announced on February 27
the appointment of Kandolph Paul to be Special
Assistant to the President to conduct negotia-
tions for the Department of State with various
P^uropean neutrals on the subject of external Ger-
man assets.
MARCH 10, 1946
375
International Organizations and Conferences
Calendar of Meetings
Council of Foreign Ministers : Meeting of Deputies
Anglo-American Committee of Inquiry
Fur Eastern Commission
West Indian Ct)nference
Nortli American Regional Broadcasting Engineering
Conference
Extraordinary Meeting of the Directors of the Interna-
tional Meteorological Services (IMO)
Regional Air Navigation Conference
International Monetary Fund and the International Bank
for Reconstruction and Development : Boards of
Governors
Fourth Session of the UNRRA Council
Preliminary Meeting of Conference on International
Health Organization
Ninth International Conference on Education
The United Nations :
Security Council — Committee of Experts
Refugee Committee
London
Germany and Austria
Washington
St. Thomas, Virgin Is-
lands (U. S.)
Washington
London
January 18 (continuing in session)
February 15 (continuing in session)
February 26 (continuing in session)
February 21 (continuing in session)
Febnmry -1-25
Feliruary 2a-March 2
Dublin
Marcli 4
Wilmingt
on Is
land, Ga.
March 8
Atlantic (
'ity
March 15
Paris
JIarch 15
Geneva
March '4
London
March 15
London
March 31
Activities and Developments
Tlie Far Eastern Commission held its first meeting
in Washington at 1^51(1 ^Massachusetts Avenue on
February 26 at 10 : 30 a.m. The Secretary of State
welcomed the Commission, the following repre-
sentatives of whicii were present :
Maj, Gen. Frank II. McCoy, Cha'trman (U.S.)
Sir Frederic Eggleston (Australia)
E. Herbert Norman (Canada)
Dr. Wei Tao-ming (China)
Paul Emile Xaggiar (France)
Sir Girja Shankar Bajpai (India)
Dr. A. Loudon (Netherlands)
Sir Carl Berendsen (New Zealand)
Brig. Gen. Carlos Romulo (Philippines)
Sir George Sansom (U.K.)
Nikolai V. Novikov (U.S.S.R.)
N^elson T. Johnson, Secreta)n/-General
The temporary Secretary-General read the fol-
lowing memorandum from the United States De-
partment of State, adtlressed to the United States
Representative on the Commission :
The dates in the calendar are as of Mar. 3.
For the Secretary's address of welcome to the Far East-
ern Commission and for an article on I'XRRA see pages
378 and 359 respectively of this issue.
376
DEPARTMENT OF STATE BULLETIN
The Foreign Ministers of the ITnion of Soviet
Socialist Republics, the United Kingdom, and the
United States of America at their meeting in
Moscow in December 1945, with the concurrence
of the Government of China, agreed to establish
a Far Eastern Commission, to function under the
Terms of Reference appended hereto.^ It was
also agreed that the (rovernment of the ITnited
States on behalf of the four Powers should present
the Terms of Reference to the Governments of
France, the Netherlands, Canada, Australia, New
Zealand, India, and the Philippine Common-
wealth and invite them to participate in the Com-
iuission.
In accordance with this agreement the Govern-
ment of the United States on December 28, 1945
invited the Governments named above to partic-
ipate in the Far Eastern Connnission on the basis
of the Terms of Reference agreed upon at the con-
ference. All the goverinnents accepted the invita-
tion. The French Government, however, based
its acceptance on its interpretation that the phrase
"other nKitters"" in paragraph II-A-3 of the Terms
of Reference referred to matters relative to the
control of Japan and stated that if the provisions
of this paragraph shoukl be invoked in order to
extend the jurisdiction of the Commissioir to any
matter which might bring directly into (juestion
French interests in the Far East, the French Gov-
ernment would consider itself justified in claim-
ing, so far as the voting procedure provided for in
paragraph V-2 is concerned, a status identical
with that enjoyed by the other powei's in the
Pacific which are pe immanent members of the Secu-
rity Council of the United Nations Organization.
The United States Government has informed the
French Government that it uiulerstands "other
matters'' as used in paragraph II-A-3 of the Terms
of Reference to apply to matters relating to con-
trol of Japan and that it is not the intention of
the United States (iovernment to introduce into
the Commission's deliberations matters affecting
Southeast Asia, including Indochina, which are
not related to the control of Japan. It is assumed
that the other participating governments will put
on record with the Commission any observations
they may desire to make regarding the French
position.
' Bulletin of Dee. 80, lt)4.-), p. 1028.
■Released tn the iircss on .Jiiii. 25.
All the nations comprising the Far Ea.stern
Commission having agreed to participate in the
work of the Commission on the basis indicated, the
Secretary of State has informed the participating
powers, tiirough their diplomatic representatives
in Wasliington, that the initial meeting of the
Commission is to be held in AVashington at 10 : 30
a. m. February 26, 1946, at 2516 Massachusetts
Avenue, NW.
John Carter Vincent
[Here fullow.s Terms of Reference of the Far Eastern
Coiunii.ssioii ;is printed in tlie Bulletin of Decenilier 30,
194.5, p. 1(128.1
Maj. Gen. Frank R. McCoy was unanimously
elected permanent Chairman, having held the
same office on the Far Eastern Advisory Com-
mission, and Nelson T. Johnson was unanimously
elected Secretary-General. The organization of
the Secretariat and the organization of the Com-
mission's work were tliscussed. A Steei'ing Com-
mittee, nnule up (»f the following members, was
scheduled to hold its first meeting on February 27 :
Aiisfralid Nrw Zculand
Sir Frederic Eggleston Col. G. R. I'owles
Maj. .1. PliiusoU {(liter- I'liiJippincs
nnfe) Brig. Gen. Carlos Romulo
Cniiiida Toiuas Confesor {(iltcr-
E. Herbert Norman iiafe)
R. E. Collins (aUcrnate) Ua^.S.R.
China Nikoliii V. Noviknv
Dr. Liu Sliih-slum Viiitid KinmUiin
Fiance Sir George San.«iom
Francis l.acoste H. A. Graves {alternate)
Iniliii United States
Sir Girjn Shankar Eajpai Ge<irge H. Blakeslee
Netherlniids
A. London
A. D. A. de Kat Angelino
(alternate)
Questions of immediate importance to be studied
b}' this Committee will be the composition of a
tribunal to be set up for the trial of Japanese war
criminals, and reparations. The meeting ad-
journed at 11 : 40 a.m.
Second North American Regional Broadcasting
Engineering Conference 'which convened in Wash-
ington on February 4, 1940 concluded its sessions
with the signing on February 25, 1946 of an
interim agreement participated in by Canada,
Cuba, the Dominican Republic, His Majesty's
Government in the Ignited Kingdom in rcsjoect of
MARCH 10, 1946
377
I he Bahanta Islands, His Majesty's Government
in the United Kingdom and the Government of
Newfoundland in respect of Newfoundland, the
United Mexican States, and the United States of
America.^ The Conference was necessitated by
the expiration on March 2<S. 1946 of the North
American Regional Broadcasting Agreement
which was signed at Habana on December 13,
1937. and by the insistence of Cuba upon addi-
tional facilities for broadcasting purposes. The
Conference devoted its entire attention to stand-
ard-band broadcasting.
Inasnuich as it was generally believed that
the complexity of the problem would not permit
of the negotiation of a new North American Re-
gional Convention at this time, an interim agree-
ment was .signed which continues for a period of
three years the application of the terms of the ex-
isting North American Regional Broadcasting
Agreement, subject to cei-tain modifications and
specified additions. Thus the desirable engineer-
ing standards of the former convention are largely
continued during the .succeeding three 3'ears.
Furthermore, the signing of the interim agree-
ment will prevent the chaos which would result
from unregulated standard-band broadcasting
after March 28, 1946 which might easily have re-
sulted in a serious radio war.
Having in mind the complexity of the problem,
a schedule of procedure was established to coor-
dinate preparations for the Third North Ameri-
can Regional Broadcasting Conference which is
to be convened in Canada about September 15,
1947. There has been established an engineering
committee composed of engineers of Canada,
Cuba. Mexico, and the United States whith will
permit the members thereof to visit and test the
transmissions of new stations in the various
countries of the North American region as well
as existing stations which may be causing inter-
ference. It is believed that this committee will
go far to reduce the interference which has caused
so much difficulty in the past in the standard-
broadcast band.
It appears that none of the United States local
broadcasting stations will be affected by this
' Poi' address by Franris de Wnlfe liefore the closing
session of the Second North American Regional Broad-
casting Conference, see p. 379.
"Released to the press on Feb. 26.
agreement, tliat the regional United States sta-
tions will be in a better position than heretofore
and that, of the 25 clear-channel stations in the
United States, five have been affected by the per-
mission granted Cuba to operate Class 2 stations
in Cuba on those channels. In order to counteract
any adverse effect of these concessions, a provi-
sion is made in the interim agreement whereby
the governments concerned will cooperate with a
view to minimizing interference as occasion
requires.
Aviation Agreements: China, Canada, and Domini-
can Republic.- The Ambassador of China depos-
ited with the Department of State on February 20
the Chinese instrument of ratification of the Con-
vention on International Civil Aviation.
When the International Air Transport Agree-
ment was accepted by China on June 6, 1945 the
following reservation was made :
"The acceptances are given with the under-
standing that the provisions of Article IV Section
3 of the International Air Transport Agreement
shall become operative in so far as the (iovernment
of China is concerned at such time as the Conven-
tion on International Civil Aviation, signed at the
International Civil Aviation Conference, shall be
ratified by the Government of China."
With the deposit of the Chinese instrument of
ratification of the Convention, the provisions of
Article IV. Section 3, of the transport agreement
therefore become operative with respect to the
Government of China.
Other action taken recently on the Interim
Agreement on Inteinational Civil Aviation, the
Convention on International Civil Aviation, and
the International Air Transport Agreement con-
cluded at the International Civil Aviation Con-
fei'ence in Chicago on December 7, 1944 includes
the following :
The deposit by the Ambassador of the Domini-
can Republic with the Department of State on
January 25 of the instrument of ratification of the
Convention by the Government of the Dominican
Republic and the acceptance of the interim and
transport agreements by that Government; and
The deposit by the Ambassador of Canada with
the Department of State on February 13 of
the Canadian instrument of ratification of the
Convention.
685890—46-
378
DEPARTMENT OF STATE BULLETIN
Record of the Week
Meeting of Far Eastern Commission
ADDRESS OF WELCOME BY THE SECRETARY OF STATE
[Released to the press February 26]
It is a pleasure for me to be here today and to
extend a cordial welcome to you who have been
designated by your governments to serve on the
Far Eastern Commission.
The agreement reached at Moscow fur the estab-
lishment of this policy-making group to take the
place of the Far Eastern Advisory Commission was
(tnc of the major accomplishments of that meeting.
Tlie Moscow agreement laid the foundation on
which all the Allies involved in the Pacific war
could unite for the control of Japan. Therefore,
the convening of this Commission, comprised of
representatives of Great Britain, the Soviet Union,
China, France, the United States, the Netherlands,
Australia, New Zealand, Canada, India, and the
Philip]iines is a source of genuine gratification.
Even though the task of crushing the Japanese
end of the Axis fell largely upon the United States,
this Government always desired that the control
of Japan should become an Allied responsibility.
The same unity of action and of purpose that won
the war must be maintained if we are to root out
the seeds of possible future wars, wherever they
may be planted.
Peace in the Pacific is an essential cornerstone
to a stable world structm-e. The guidance of
Japan to a position of peaceful association with
other nations is therefore a task of major responsi-
bility. That responsibility now belongs to you
of the Far Eastern Commission.
As the meeting of this new Conunission opens
a new phase in the control of Japan, I should like
to commend to you the progress thus far made.
The directives issued and the administration estab-
lisjied by the Supreme Allied Commander repre-
sent sound and significant contributions to the
transformation of Japan. While we can, I believe,
view our accomplishments to date with consider-
able satisfaction, we should not for a moment lose
sight of the important job that lies ahead.
The weapons of war can be destroyed with rela-
tive ease. But the social habits, the economic or-
der, the governmental structure which were party
to forging those weapons are not so easy to change.
'J'he old structure of power and ride in Japan can-
not be eliminated in a matter of weeks or even
nf months.
The creation of conditions under which political
and economic democracy can flourish and survive
is a continuing ta.sk. The importance of this crea-
tive process is so vital to the security and future
well-being of us all that it can not be overempha-
sized. The terms of reference agreed to last De-
cember in Mosccjw placed the final and ultimate
responsibility for formulating the policies and
jninciples upon which the peace and security of
the Pacific may well be based, in your hands.
The mere fact of your presence here signifies
the solution of one of the many issues we have
faced in concert with our Allies since the end of
the war. Tlie results of your labors will, I am
sure, result in the solution of many more of the
problems that are fast becoming milestones as we
continue our march along the road of international
coo|)eration.
I shall now ask General McCoy, the representa-
tive of the United States on this Commission, to
act as your tem])orary chairman in order that you
may jjroceed with the business of organizing your-
selves for work under j'our terms of reference.
JIade in Washington on Feb. 26 at tlie first meeting of
tlie Commission.
MARCH 10, 1946
379
North American Regional Broadcasting Conference
Address by FRANCIS DE WOLF
Gentlemen or tiie Conference: I had the
pleasure on the forenoon of February 4, 1!)4() of
brinjTJng to you a ^yorlI of greeting from the
Department of State anil of expressing its best
wishes for your successful negotiations. At that
time the target date for the closing of the Con-
ference was February 15, ID-Ki. The fact that
only now, on February 25, are you able to reach
a definitive decision, is indicative of the difficul-
ties which confronted you. The further fact that
you have reached a definitive decision at all is
indicative of the success of your endeavors.
This Conference has been a most important
one involving as it does important interests of
industr}^ and the public in the countries con-
cerned, consequently placing upon the delegates
and their advisers a heavy responsibility. It
is to their credit that through three weeks of effort
they have souglit a solution of the problems con-
fronting them which might be satisfactory so far
as possible in the light of the diversity of interests
involved. For their earnest endeavors the De-
partment of State is deeply grateful and I am sure
that the F^ederal Communications Commission
joins it in that gratitude.
No general remarks of mine can jjroperly ap-
]iraise the value of this Conference but an out-
line of its tangible accomplishments may be
indicative of the value of its endeavors.
(1). It avoided the negotiation at this time of
a new North American Regional Bi-oadcasting
Convention which would last for a long period
and which was generally considered to be unde-
sirable at present.
('!). The Conference i)i-escribed a course of pro-
cedure looking toward the eventual negotiation,
two or three years hence, of a new North American
Regional Broadcasting Agreement in order that
the preparation for the negotiation of that im-
portant document might be carried forward in an
orderly and efficient manner.
Mr. de Wolf is Chief of tlie Telecommnnieations Divi-
sion, Office of Transport and Communications Policy,
Department of State.
(3). In an effort to avoid confusion and in fact
possible chaos in the standard broadcast band
through the absence of any North American Re-
gional Agreement after the conclusion of the pres-
ent Convention on March 28, 1946 provision was
made for the continuance in effect of the essential
provisions of the existing NARBA Agreement in-
cluding the continued application of the desirable
engineering standards of the present Convention.
This was accomplished by means of an interim
agreement carrying forward the terms of the
existing NARBA subject to certain modifications
and additions outlined therein.
(4). There was maintained the solidarity of the
inter-American front which seems so desirable.
(5). There was set up a North American Re-
gional Engineering Committee, an international
body clothed with authority to test the signals
of stations, new and old, in the various countries
party to the Interim Agreement so that inter-
ference might constantly be avoided or corrected.
(6). It would appear that the Interim Agree-
ment will in no wise affect the large number of
local broadcasting stations in the United States.
(7). Spokesmen for the regional broadcasting
stations have indicated that they will be in a bet-
ter position under the new agreement than has
previously been the case.
(8). Of the 25 clear channel stations in the
United States, 20 have not been adversely affected.
Two of the remaining five have stated that while
they are not happy over the outcome in tliis par-
ticular they would not object to the concessions
made on their channels and a third has long since
been derogated in this country.
It is a source of profound regret to the United
States delegates and their advisers that some price
has had to be paid for all of this. It is not a happy
thought to them nor to the Department of State
nor to the Federal Comnmnications Commission
that any United States channel or any United
States station should suffer in any particular. It
is deeply regretted that two such channels may
hereby be adversely affected. In an effort to avoid
(Continued on page -'lOO)
380
DEPARTMENT OF STATE BULLETIN
Objectives of International Economic Foreign Policy
MESSAGE OF THE PRESIDENT TO THE CONGRESS
[Released to the press by the White House February 28]
To t/ir Congress of the Ignited States: On July 31,
1!)45, the Bretton Woods Agreements Act became
law. In that legislation the Congress established
the National Advisory Conncil on International
Monetary and Financial Problems "in order to co-
ordinate the policies anil operations of the repre-
sentatives of the United States on the Fund and
tlie Banlv and of all agencies of the (lovernment
which make or participate in nuiking foreign loans
or which engage in foreign financial, exchange or
monetary transactions." The Congress provided
that the membersliip of the Council should consist
of the Secretary of the Treasury, as Chairman, the
Secretary of State, tlie Secretary of Commerce, the
Chairman (tf tlie Board of (Jovernors of tlie Fed-
eral Reserve System, and tlie Chairman of the
B >ard of Directors of tlie Plxport-Iinport Bank of
^Vashington.
On August 9, 1945, tlie Secretary of the Treasury-
submitted for my api)rova] a jiroposal as to the
manner in which the National Advisory Council
should proceed in pei-formiiig the task assigned
it. The essence of this proposal is contained in
the following excerpt from the communication
which the Secretary of tiie Treasury sent to me:
"As you can .see from the attached memorandum,
the United States Govermnent is now extend-
ing financial assistance to foreign governments
through a large number of jirograms, administered
by different departments and agencies, and with
different procedures for intei'-agency considtation.
In order for the Council to carry out the func-
tions assigned to it. it seems to me necessary that
the Council should have a picture of the over-all
progiain of financial transactions which it is pro-
])()sed to carry out in the next period. On such a
i)asis, we can make decisions in a rational way,
strike the best bargains with foreign coimtries, and
save money for the taxpayer."
On August 10, 1945, I expressed my complete
approval of the proposal and requested the Coun-
cil to proceed along the lines indicated. Promptly
thereafter the Council completed its organization
and commenced to function without delay. Since
that time the Council has labored unremittingly
in the performance of its duties.
I have now received from the National Advisory
Council a document containing significant con-
clusions concerning the entire problem of foreign
lending. The Council in submitting the docu-
ment to me stated :
"At an early date the Council undertook to con-
sider proposals and aj^plications for foreign
loans, and to study the problems and broad impli-
cations of foreign lending. The statement which
is now submitteil to you is an outgrowth of these
activities of the Council and represents our pres-
ent views. Tlie Council will continue to study
these matters and will report further to you as
the rapidly clianging conditions at home and
abroad may require."
This document, which is based upon the careful
study and direct experience of the body estab-
lished by the Congress to coordinate the foreign
financial activities of this Government, I now
transmit to the Congress for its information and
consideration. The document is attached hereto.
I fully endorse the recommendations of tBe Na-
tional Advisory Council. Furthermore, I wish to
emphasize that in my judgment the successful exe-
cution of this policy, including the implementa-
tion of the Financial Agreement with the United
Kingdom, which I transmitted to the Congress
on January 30, 194fi, is of basic importance in the
attainment of the objectives of the economic for-
eign policy of the United States. The interna-
tional economic cooperation which is the keynote
of our economic foreign policy must accompany
international political cooperation, and we must
achieve both if world peace is to be enduring.
The statement of the National Advisory Coun-
cil concerning foreign loans reaches the conclu-
sion that the Export-Import Bank will require
during the next fiscal year additional lending au-
thority of $114 billion. I endorse tliis conclusion
and at a later date I will discuss further with the
Congress the need of appropriate legislation.
Harry S. Truman
The WiuTE House
March 1, 19Jt6
MARCH 10, 1946
.381
statp:ment of the foreign loan policy of the united states government by
THE national ADVISORY COUNCIL ON INTERNATIONAL MONETARY AND FINAN-
CIAL PROBLEMS
February 2U 194S
1. The foreifi'u loan profrnun of tlu> United
States, by assisting in the restoration of the pro-
ductive capacities of war-devastated countries and
by facilitating the sound economic development of
other areas, is directed towards the creation of an
international economic environment permitting a
large volume of trade among all nations. This
program is predicated on the view that a produc-
tive and peaceful world must be free from warring
economic blocs and from barriers which obstruct
the free flow of international trade and productive
capital. Only by the I'eestablishment of high
levels of production and trade the world over can
the United States be assured in future years of a
sustained level of exports appropriate to the main-
tenance of high levels of domestic production and
employment.
By far the gi'eatest part of the program of recon-
struction is being carried out with the resources
of the war-devastated countries. UNRRA takes
care only of those immediate relief needs which
cannot be met out of the resources of the countries
involved. Another part of this program is being
carried out through sales of surplus property, such
sales being made on credit terms or for local for-
eign curi-encies where sales for cash payment in
United States dollars cannot be made. The rest
of the joli must be handled on a loan basis.
2. The International Bank will be the principal
agency to make foreign loans for reconstruction
and development which private capital cannot fur-
nish on reasonable terms. It provides a means by
which the risks as well as the benefits from inter-
national lending will be shared by all of its mem-
bers. It is expected that the International Bank
will begin lending operations in the latter half of
1946 and that during the calendar year 1947 the
International Bank will assume the primary re-
sponsibility for meeting the world's international
capital reipiirements that cannot be met by private
investors on their own account and risk. With its
present membership, the International Bank will
he authorized to lend approximately $7.5 billion.
The bulk of the funds for the loans made through
the International Bank will be raised in the private
capital markets of member countries, particularly
in the United States. However, since this new
institution will take time to develop a lending pro-
gram, it will probably not be in a position to enter
into more than a small volume of commitments
this 3'ear.
3. The proposed loan to Britain requiring Con-
gressional authorization is a special case, but one
which is an integral part of the foreign economic
program of this Government. No other country
has the same crucial position in world trade as
England. Because of the wide use of the pound
sterling in world trade, the large proportion of the
world's trade which is carried on by the countries
of the British Empire, and the extreme dependence
of England upon imports, the financial and com-
mercial practices of Britain are of utmost signifi-
cance in determining what kind of world economy
we shall have. The early realization of the full
objectives of the Bretton Woods program, includ-
ing the elimination of exchange restrictions and
other barriers to world trade and investment, re-
cjuires an immediate solution to Britain's financial
problem. The International Monetary Fund
Agreement permits the continued imposition of
certain of these restrictions for as much as five
years; in the Financial Agreement of December 6,
1945, the British agree to their removal within one
year from the effective date of that agreement.
It is the view of the Council that the British case
is unique and will not be a precedent for a loan
to any other counti'v.
4. In July 1945. the Congress, for the purpose
of making loans to war-devastated areas during
the period prior to the inauguration of the Inter-
nati(jnal Bank and for the promotion of Ameri-
can ex])orts and other special purposes, increased
the lending power of the Export-Import Bank
by $2.8 billion, making its total lending power
$3.5 billion. At the end of 1945 the Export-Im-
port Bank had outstanding commitments, includ-
ing money authorized for cotton loans, of $1,560
million of which $1,040 million was committed in
the last half of 1945. The $1,040 million of com-
mitments made during the last, half of 1945 con-
sisted of:
(a) $655 million for the purchase of goods
M-hich originally had been included in the lend-
lease programs to Belgium, Netherlands, and
France ;
382
DEPARTMENT OF STATE BULLETIN
( h ) $1(55 million for the piirclmse of other goods
aiul services necessary for the reconstruction of
Bel<>iuni, Denmark, Netherlands, and Norway;
(r) $100 million available to various European
countries, including Finland, Belgium, Czecho-
slovakia, France, Italy, Netherlands and Poland,
for the purchase of raw cotton, and
(d) $1:20 million for specific export and de-
velopment programs, mostly to Latin American
countries.
On January 1, lOifi, the Export-Import Bank
had unused lending power of $1.9 billion for mak-
ing additional commitments. In addition to the
$1.!) billion, there will be available during the
fiscal year 1947 about $.50 million from repayment
of principal and an additional sum (possibly
$100 million) from the cancellation of earlier
conunitments.
5. Pending the effective operation of the In-
tei-national Bank, it has been the policy of this
(lovernment to limit loans through the Export-
Import Bank for reconstruction and development
to the immediate, minimum needs of the borrower.
Among the factors taken into consideration in
making loans of this character are: (1) the ur-
gency of the need of the borrower; (2) the bor-
rower's own resources; (3) the possibility of ob-
taining the loan from other sources: private
capital markets and other governments; (4) the
at)ility of the borrower to make effective use of
the funds; (5) the capacity of the borrower to
re]iay; and (6) the impact of the loan on our
domestic economy.
(). It is the view of the Council that, pending
the establishment and operation of the Interna-
tional Bank, this (lOvernment can meet only a
small proportion of the undoubtedly large needs
of foreign countries for credits for reconstruc-
I ion and development.
After careful ccmsideration of all factors, the
Council has concluded that the most urgent for-
eign needs will involve negotiations for loan
commitments by the Export-Import Bank of ap-
proximately $.314 billion in the period from Janu-
ary 194() through June 1947. This is exclusive of
the proposed credit to Britain.
Since the available funds of the Export-Import
Bank are about $2 billion, it will be necessary in
order to carry out this program to ask Congress to
increase the lending authority of the Bank by
$11/1 billion. Although this is a substantial in-
crease, the Council believes that it is a niininuun
figure.
It is only through careful screening tliat it will
be i)ossible to carry out the jjrogiam within the
limits of the additional funds which the Congress
will be asked to make available to the Bank. It is
the established policy of the United States Gov-
ernment carefully to scrutinize each loan ap])lica-
tion to determine that the need is urgent and that
the funds can be obtained from no other source
than the Export-Import Bank.
7. On balance tlie loan program will he beneh-
cial to our domestic economy. In the ti'ansition
from war to peace, expanded foreign trade will
not oidy assist the reconstruction of foreign coun-
tries, but also ease the reconversion {jrobleiu of a
number of domestic industries.
During the war many of our impoitant indus-
tries, jjarticularly in the field of capital g\>oils.
were built up to capacities far in excess of any
foreseeable peacetime domestic demands. With
the elimination of war demands, much of this
American productive capacity may be unused.
Such a situation has already arisen, for instance,
with reference to railroad equipment, machine
tools, power and transmission equipment, and
certain types of general industrial machinery.
This is also ttue for .some of the metals, heavy
chemicals, synthetic rubber, and other industrial
materials. Similarly, we have quantities of cot-
ton, tobacco and other agricultural products which
are surjjlus to domestic needs. It is fortunate that
this excess productive capacity is for many items
which are most urgently needed by the war-
devastated countries.
However, a jiart of the foreign demand will fall
on products which are at present scarce in Amer-
ican markets. The Department of Connnerce
estimates that jierhaps one-fourth of the proceeds
of foreign loans will be spent on such jiroducts.
In these cases the export demand, although small
in relation to current domestic demand, contrib-
utes to inflationary pressures in the United States
economy, and allocation and export controls must
be maintained in order both to prevent any undue
drain on domestic supplies and to assure that the
minimmii essential needs of other countries are
met.
In this connection, account must be taken not
oidy of the fact that there is an inevitable delay in
the sjiending of the loans but also that the Export-
MARCH }n, 1946
383
Import Bank discourages the eniplovment of loan
proceeds for the purcliase of commodities in
scarce supply. It is also the policy of the Govern-
ment to prevent the proceeds of loans from being
used to purchase goods in the United States market
when similar supplies are for sale as surplus
l)roperty.
The figure of ^-i^/i billion in recjuiremeuts
through the fiscal year 1947 represeuts anticipated
commitments and not amounts which will be actu-
ally loaned or spent. For example, on January
1. r.)4(), the net outstanding loans of the Export-
Import Bank amounted to only $'2i>'2 million al
though the total amount committed was $1.C> bil-
lion. In order to permit foreign governments to
plan their import programs and to permit United
States producers to schedule their production, loan
conunitments by the Ex]5ort-Import Bank nnist
be nnide well in advance of actual use of loan
funds.
In view of these considerations, it is bidieved
that a foreign lending program adequate to meet
the minimum needs of foreign countries will pro-
vide additional production and employment in
many American industries, and that any tem-
porary sacrifice involved in other areas of the
economy will be small compared to the long-range
advantages to the United States of a peaceful,
active, and growing world economy.
8. A basic cjuestion to be considered is whether
at a later period foreign countries will be able to
service large American loans and investments.
There is little doubt regarding the ability of
debtor countries after their economies have been
fully reconstructed to increase their national in-
come sufficiently to handle the service charges on
American loans and investments, providing an
undue part of national income of borrowing coun-
tries is not diverted to military expenditures.
\ This increase can be brought about through the
modernization of economically backward areas,
increased employment, and the utilization of new
productive techniques, and well-directed foreign
loans will make an inqiortani contribution to this
develojinient.
The ability of borrowing countries to develop an
export surplus suilicient to meet service charges on
foreign loans will depend in large measure upon
the level of world trade. A high level of world
trade will in turn dejiend upon the maintenance of
a hiujh level of world income and a reduction of
the harriers to international trade which have
grown up in the ])ast. A high level of world in-
come, and of national income in the United States,
will be greatly influenced by the domestic economic
policies of the United States and of other major
countries. It is expected that the proposed Interna-
tional Trade Organization will play an important
role in securing the international economic en-
vironment necessary for the maintenance of high
levels of world trade. The operation of the Inter-
national Mfinetary Fund should assure the orderly
functioning of a system of multilateral payments,
and this will make it possible for debtor countries
to convert their export surplus with any country
into the currency in which their obligations must
be di>charged.
!). Fundament ally, however, the ability of for-
eign countries to transfer interest and amortiza-
(ion on foreign loans to the United States de-
pends upon the extent to which we make dollars
available to the world through imports of goods
and services including personal remittances and
tourist expenditures, and through new investments
abroad. As a last resort, the world outside of the
United States has a current gold production of
possibly $1 billion i)er year to add to their present
foreign exchange reserves, which can be dipped
inli) to ensure payment.
As long as new American investment exceeds
interest and ainortization on outstanding foreign
investment, the question of net repayment on our
total foreign investment will not arise, although
as individual investments are paid off the com-
jjosition of our foreign investment may shift. It is
impossible to ])rophesy when receipts on foreign
investment will exceed new investment, as Ameri-
can investment abroad will defjend on many futui'e
develo]iments. In a world of peace, prosperity,
and a liberal trade policy, there may well be a
re\ival and continuation of American private in-
vestment on a large scale, including a reinvest-
ment of the. profits of industry, that will put the
])eriod of net repayment far in the future. Such
an increase of investment is a natural and whole-
some development for a wealthy connnunity.
When net repayment begins, whether this be a
few years or many decades from now, it will in-
volve an excess of imports of goods and services
(including foreign travel by Americans) over our
total exports of goods and services. The growth
in our population and the depletion of our natural
384
DEPARTMENT OF STATE BULLETIN
resources and the increase in our standard of liv-
infi will increase the need for imported products,
antl these developments together with the main-
tenance of a high and stable level of employment
will facilitate this adjustment. The aiuiual in-
tei'est and amortization payments on the entire
present and contemplated Export-Import Bank
]M(>grani. the British loan, and the International
Bank loans floated in U. S. markets will be less
tlian $1 billion. The receipt of payments on our
foreign loans in the form of goods and services
is entirely consistent with increased exports from
this country and rising production at home, and
will contribute to a rising living standard in the
United States in the same way that a private indi-
vidual's earnings on his investments make possible
an increase in his own living standard.
10. The loan jjolicies stated here are in full
accord with the basic political and economic in-
terests of the United States. The National Ad-
visory Council, which was established by the Con-
giess in the Bretton Woods Agreement Act and
consists of the Secretary of the Treasury as Chair-
man, the Secretary of State, the Secretary of Com-
merce, the Chairman of the Board of Governors
of the Federal Reserve System, and the Chairman
of the Board of Directors of the Ex})ort-Import
Bank, has the responsibility of coordinating the
lending and credit programs of this Government,
and of achieving maximum consistency between
American Government lending and the lending
operations of the International Bank.
This country is supixirting the United Nations
Organization wholeheartedly, and the success of
the United Nations Organization depends not only
on political agreement but also on economic im-
provement. These loans are for economic recon-
struction and development. They will enable the
borrowing countries to increase their own produc-
tion, relieve their foreign trade from excessive
regulation, and expand their trade with us.
Economic stability will foster peace. This pro-
gram of foreign lending is essential to the realiza-
tion of the main objective of the foreign economic
policjf of the United States, which is to lay the
economic foundations of the peace.
Fred M. Vinson
Secretary of the T/vasuri/,
Chairman of the National Advisory
Council on International Monetary
and Financial Problems
James F. Bvknes
Seci'eta/'i/ of State
M. S. ECCLES
Chairman of the Board of
Governors of the Federal
Reserve System
H. A. Wallace
Secretari/ of Commerce
Wm. McC. Martin, Jr.
Chairman of the Board of Dii-ectors
of the Export-Import Baidv of
Washington
EXPORT-IMPORT BANK OF WASHINGTON
Loans Authorized by Export-Import Bank Subsequent to June 30, 1945 (as of December 31, 1945)
Country and Obligor
Date of
Autaorization
Amount of
Authorization
(In millions
of dollars)
Purpose
Latin ,\merica
Brazil
Llovd Brasileiro
9/11/45
7/13/45
7/13/45
9/11/45
9/11/45
7/13/45
3/21/45
38.0
1. 2
2.0
28. 0
5. 0
1. 0
10. 0
Purchase of Cargo Vessels
Purcha.se of Locomotives
Purchase of Electrical Equipment
Purchase of Steel Mill Ec|uipment
Purchase of Electrical and Other Equipment
Purchase of Engineering Services
Highway Construction, E(|uipment and
Services
Chile
Chilean State Railways (Hakhviii T,ocomotive
Works).
Chilean State Raihvay.s (Electrical E.xport
Corps.)
Koiiiento Corporation ....
Foinento Corporation
Fxuador
Republic of Ecuador
Mexico
MARCH in, 1946 .535
Loans Authorized by Export-Import Bank Subsequent to June 30, 1945 (as of December 31, 1945)
Coviitry mid Obligor
Latin America — Continued
Brazil — Continued
Nacional Financiera*
Fred Leighton
Peni
Cia. Peruana Del Santa* (Westinghouse
Electric Int'l. Co.).
TOTAL LATIN AMERICA
Europe
Belgium
Kingdom of Belgium .
Kingdom of Belgium .
Denmark
Kingdom of Denmark .
France
Republic of France. . . .
Dale of
Authorizalion
Netherlands
Kingdom of the Netherlands.
Kingdom of the Netherland.s .
Norway
Kingdom of Norway.
Various European Countries
Various European Governments.
TOTAL EUROPE
Asia
Saudi Arabia
Kingdom of Saudi Arabia.
Turkey
Turkish State Airways (Westinghouse Elec.
Int'L Co.)
TOTAL ASIA
Various Countries
Governments of Various Countries (Int'l. Stand-
ard Electric Corp.).
Special Exporter-Importer Credits
GRAND TOTAL.
Undisbursed commitments as of June 30, 1945
(adjusted for expirations and cancellations
up to December 31, 1945).
Outstanding loans as of June 30, 1945 (adjusted
for repayments between June 30, 1945 and
December 31, 1945).
Total commitments as of December 31,
1945.
3/21/45
10/23/45
6/12/45
9/11/45
9/11/45
7/13/45
9/11/45
9/11/45
9/11/45
7/13/45
10/8/45
4/12/45
9/11/45
9/11/45
9/11/45
Amount of
AnfhoTization
(In millions
of dollars)
20. 0
. 15
.35
105. 7
55. 0
45.0
20. 0
550. 0
50. 0
50. 0
50. 0
100. 0
920. 0
5.0
3. 06
8.06
5. 0
1.0
1, 039. 76
326. 46
193. 43
1, 559. 65
Purpose
Purchase of Electrical Equipment.
Import of Mexican Handicraft.
Purchase of Electrical Equipment.
Purchase of United States Goods and
Services (Lend- Lease 3-c term.s).
Purchase of Uiuted States Goods and
Services.
Purchase of United States Goods and
Services.
Purchase of United States Goods
Services (Lend-Lease 3-c term.s).
and
Purchase of United States Goods and Serv-
ices (Lend-Lea.se 3-c terms)
Purchase of United States Goods and Serv-
ices
Purchase of United States Goods and Ser-
vices
Purchase of Raw Cotton
Purchase of Goods and Services
Purchase of Airport Equipment
Purchase of Communications Equipment
Various
* Credits authorized before June 30, 194S but not entered on the books of the Bank as commitments until after that date.
386
DEPARTMENT OF STATE BULLETIN
The United Nations Meet
A Discussion of the United Nations Meeting Recently Concluded in London by Representa-
tive Sol Bloom, Democrat, N. Y., Chairman of the House Foreign Affairs Committee and a
Member of the U.S. Delegation to the United Nations Assembly in London; Benjamin V. Cohen,
Counselor of the Department of State and Senior Adviser to the U.S. Delegation in London: Alger
Hiss. Director of the Office of Special Political Affairs. Department of State, and Principal Adviser
to the U.S. Delegation in London. The Text of Their Conversation on the Air. Released to the
Press on March 2. is Presented Below. The Broadcast W as the Tenth in a Group of State Depart-
ment Programs in the NBC University of the Air Series Entitled "Our Foreign Policy". Sterling
Fisher, Director of the NBC University of the Air, W as Chairman of their Discussion.
Fisher: In this first year of the atomic age, the
eyes of all people in all countries are focused on
tiie United Nations. This has been especially true
during recent weeks, with the United Nations
meeting in London. There is a very general reali-
zation that if the United Nations Organization
fails, then we're in for trouble. So the verbal
battles in London were taken very seriously by
spectators over here in the bleacher seats. Con-
gressman Bloom, as the senior statesman of this
trio, would you like to evaluate the London
meetings'?
Bu)OM : Mr. Fisher, the London session was a
tremendous success. The United Nations Organi-
zation was turned into a going concern, ready to
set up headquarters right here in the United States
and start functioning. It's the hope of the world.
If it can't be made to work, what practical alter-
native has anyone got to suggest ?
Fisher: Mr. Hiss, you have been in on this
from the beginnings — from Dumbarton Oaks and
Yalta and San Francisco to the recent meetings
in England. Did the London sessions measure up
to your expectations?
Hiss : Yes. And I think that all records have
been broken by the speed with which the United
Nations Organization was established. You I'e-
member that only a little over a year ago, at Yalta,
the date was set for the San Francisco conference.
Fisher. It wasn't all smooth sailing in London,
tliough, judging from the reports. M least from
here it looked as if there were some real fireworks
over the hot issues that went to the Security
Council. Mr. Cohen, was the United Nations Or-
ganization ever in real danger from the contro-
versies over Iran, and Greece, and so on?
Coiien: No, Mr. Fisher. The discussion was
frank and even heated at times, but there was more
light than fire.
Fisher: Do you think, then, that it was a good
thing these issues were brought up at the very
beginning, almost before the Security Council
could be organized?
Cohen : Certainly, no harm was done. We
might have hoped that the Council would have a
chance to work out its rules of procedure before
it had to take up these controversial cases. But
the Council's job is to adjust itself to the needs of
the world.
Hiss : Certainly the world is not likely to adjust
itself to the Council's convenience.
Cohen: Of course we'd all be happier if these
hot spots didn't exist. But they do. And if they
aren't being straightened out, it's better to drag
them out into the open than to let them fester
underneath the surface. The discussion has
cleared the air. And we don't want to see the
Council isolated from the facts of life.
Bloom : I'd go so far as to say it's a good thing
to bring these disputes up naw. Otherwise, if
they wait and smolder, fear will result. AVhy
not talk about them? No one can object to the
truth coming out. Let's get the operation over
and by the time of the next As.sembly meeting
maybe the patient will be convalescing.
Fisher: Well, as Mr. Cohen said, Congressman
Bloom, the patient doesn't seem to be the worse
for it.
Bloom : As long as people are willing to sit down
and talk over matters, and argue and debate, these
issues can be resolved. The fact that they did
come up and were dealt with, and the United
Nations Organization is still intact, is proof that
it has a good deal of strength.
Cohen: Of course. Congressman, some of the
questions were raised as a sort of counter-attack.
Some thought that's why the problems of Greece
and Indonesia were brought to the Council table.
MARCH 10, 1946
387
But they were real questions nevertheless. Don't
you think that this sort of roujih-and-tumble argu-
ment is like a congressional debate? The same
sort of charges and countercharges.
Bloom : Certainly it's more like a congressional
debate than like a conference of diplomats:
Cohen : I think that's a healthful thing — it
reflects the real and moving forces of life. Of
course, there's always some risk of injured feel-
ings when live issues are discussed frankly. But
frank speech doesn't mean that the various view-
points can't be reconciled. And as the London
meetings went on, I think the spirit of the discus-
sions constantly improved.
Fisher: But, Mr. Cohen, was anything really
settled as a result of these debates?
Cohen : I can't say much was done in the way
of definite settlement, but I do believe that in most
cases tlie situation was improved as a result of
the discussions.
Hiss : In fact, the town-meeting method of deal-
ing with controversial questions may turn out to
be a new technique of conciliation.
Fisher: How do you mean, Mr. Hiss?
Hiss : It not only lays the issues wide open, be-
fore the world, but it gives each party to the dis-
pute insight into the attitudes of the other side —
don't you think so, Congressman Bloom?
Bloom : Yes, and it gives both sides a chance to
fight it out on a verbal level, so that more serious
battles can be avoided.
Fisher: Mr. Cohen, I know your work in Lon-
don brought you into close touch with the Security
Council. Just what results were achieved on each
of these cases — Iran and the others? There is a
feeling in some quarters that the Security Council
did a pretty good job of dodging the issues.
Cohen : In the case of Iran, I think the discus-
sions gave great impetus to a settlement outside
the Council. Iran and the Soviet Union are now
negotiating for a settlement.
Fisher : Did the Security Council wash its
hands of the whole affair, then?
Cohen : No, by no means. It reserved the right
to discuss the case again if it is not settled in ac-
cordance with the principles of the Charter.
Bloom : It did show that the small nations can
bring their grievances before a world forum. That
itself is some protection for them.
Fisher: From the reports, the Greek case was
the touchiest of all those that came up.
CniiKN : That is difficult to say. The Greek case
was very tangled; but in the end there was a gen-
eral feeling that most of the tension in Greece had
been due to the bitter civil war that had occurred
there, and that Britain is now doing her best to
assist in maintaining order. No solution was
reached on Greece, but the discussion undoubtedly
led to greater understanding on the part of all who
jiarticipated.
Fisher : And what about the Ukrainian de-
mand for an investigation of British actions in
Java?
Cohen: The discussions on Indonesia were
helpful in two ways : First, they made it clear that
all members of the Security Council, including
the Dutch and British representatives, were sym-
pathetic with the development of Indonesian na-
tionalism, and with Indonesian aspirations for
self-government ; and second, they showed how
much the situation is complicated by the past activ-
ities and continuing influence of the Japanese in
Java. The Ukrainian representative himself sug-
gested that the assassination of the British Gen-
eral who was trying to negotiate a truce was prob-
ably the act of a Japanese agent.
Fisher: But, Mr. Cohen, did this discussion
have any concrete results?
Cohen : I think the discussion may improve the
chances of a fair settlement coming out of the
negotiations recently started by the Dutch, look-
ing toward self-government for the Indies. The
Council turned down the Ukrainian lequest for
an investigation because it was feared that this
might interfere with the negotiations, and aggra-
vate local strife. But the Council's views should
be a factor in the settlement, when one is finally
reached.
Fisher : Then there was one other major issue —
the demand by Syria and Lebanon that the British
and French troops withdraw from their territory
immediately.
Cohen : The discussions on Syria and Lebanon
should speed up the withdrawal of foreign troops
from those countries.
Fisher: But no definite formula was found?
Cohen : All were agreed that the foreign troops
should be removed but they could not agree on a
formula. Mr. Stettinius offered a resolution call-
ing for withdrawal "at the earliest practicable
moment". This was not definite enough to satisfy
the Russians. So it failed of passage, because
under the Charter big-five unanimity is required.
388
DEPARTMENT OF STATE BULLETIN
Fisher: The Russian veto, tlien, produced a
stalemate?
Cohen : Not at all. The British and French
promptly declared that they would carry out the
Stettinius resolution and report to the Council.
Hiss : By turning the spotlight on these issues,
and reserving the right to take them up again if
the need arises, the Security Council has contrib-
uted to world peace.
Fisher : Just how do you think the Russians feel
about all this, Mr. Cohen? Do they feel that the
whole world is lined up against the Soviet Union?
Cohen: No, I don't think so. Of course there
are differences — some very fundamental diifer-
ences— in our points of view. But the Russians
found considerable .support for a number of their
suggestions. Speaking genei'ally, some countries
appear to have greater confidence in the United
Nations than others. But confidence, developed
by working together, is the only way to learn how
to live together.
Bloo.m : Foreign Vice Connnissar Vyshinsky
said toward the end that we had all fought hard
for our respective viewpoints on issues before us — •
but out of the clashes had come a better under-
standing of our common interests.
Fisher: Was there no truth then. Representa-
tive Bloom, to the published report that Vyshin-
sky was ready to walk out of the Security Council
at one point, and to take tlie Russian Delegation
with him?
Bloom: That's pure rubbish! If they felt that
way, they kept it a secret amongst themselves.
Fisher: In any case, they didn't withdraw.
Hiss : As for the British, Prime Minister Attlee
spoke for them when he said, "The United Nations
Organization must become the overriding factor
in foreign policy".
Cohen: There was no indication at any time
that any of the great powers didn't intend to play
their full part in the United Nations.
Fisher : Over here, there was great interest in
the selection of the site for the United Nations.
Mr. Cohen, what was the feeling among the dele-
gates about the area that was selected?
Cohen : I think there was a general feeling that
the decision to locate somewhere in Westchester
Cotmty, N. Y., or in Fairfield County, Conn., was
a satisfactory one. Originally, of course, there
was a tug-of-war as to whether the site should be
in Europe or America and as to whether, in
America, it should be on the east or west coast.
But jnost of the delegates felt that the area chosen
was as acceptable as any.
Fisher : Congressman Bloom, as a New Yorker,
what did you think of the area recommended for
the headquarters?
Bloom : I have no particular feeling about it as
a New Yorker, Mr. Fisher. You realize, of course,
that the General Assembly did not adopt the
recommendation of the inspection group which
came over here. That group suggested a specific
tract of about -12 square miles. Instead, the As-
sembly voted just to locate somewhere within the
area of the two counties mentioned and to appoint
a new headquarters commission to survey the
whole area. I believe that Americans who know
the area should be consulted before the final de-
cision is made, which won't be until the Assembly
meets again in September.
Hiss : The commission is instructed to call in
American experts.
Bloom : Whatever the decision, we've got to
stand by the will of the majority. It's the work
of the United Nations that counts, not the location.
Fisher: You don't take the objections of the
local residents too seriously, then?
Blooji : Wherever you put it, Mr. Fisher, there
would be objections. Some will have to move out.
But they'll be fairly compensated. And I'd like to
point this out: Our homes, mansions, and farms
won't be worth much to us or to anyone else if the
United Nations Organization doesn't succeed.
This is more than a personal matter — the peace
and security of the world are at stake.
Hiss : I think a lot of us could learn a lesson
from the chief of Bikini Atoll. Did you see that
news story about him this week?
Fisher: No, Mr. Hiss, I don't believe I did.
Hiss : Well, Bikini Atoll is where they are set-
ting up the experiment on the effects of atomic
bombs on warships. Navy officials went down
there and told the 160-odd natives of Bikini the
reasons for selecting the tiny isle for the experi-
ment, and about the dangers involved and how
the experiment might prove beneficial to world
peace. The natives were asked to leave the island
voluntarily. They listened to the officers, and then
held a tribal meeting to vote on the proposition.
Afterward their chief spoke to the Navy men about
as follows : "We love our homes. It is hard to leave
our native land. But if our going will help to
preserve world peace, we will do it gladly"'.
MARCH 10, 1946
389
Fisher: There's a very reul parallel in that
story.
Bloom : I do want to say this: I think the deci-
sion to locate tlie United Nations over here is an
honor to tlie United States. It emphasized once
more onr tremendous responsibility for making
the Organization succeed.
Fisher: Mr. Hiss. I Icnow you have followed
this controversy over the site very closely. Wasn't
another attempt made in London to locate the
United Nations in San Francisco?
Hiss: Not the permanent site. The Australians
did move to locate the temporary headquarters in
San Francisco, but their motion lost by two votes.
So the New York area was selected for both the
interim and permanent headquarters.
Fisher : And how did our Delegation vote ?
Hiss : AVe didn't vote on the location of the
site — we preferred to leave the decision on that to
the other nations.
Fisher : I understand that Senator Vandenberg
and other members of the Delegation questioned
the necessity of acquiring 42 square miles of land
for the site.
Hiss: That's riglit. In the end. the question of
size was left open by a vote of 22 to 17 on a mo-
tion by the Netherlands Delegation. The Dutch
asked that a commission look into the cjuestion
and report to the second part of the General As-
sembly session in New York next fall on alterna-
tive plans for different sizes, beginning with two
square miles and running up to 42. We expressed
ourselves as in favor of that proposal.
Fisher: The question has been raised as to
whether we would have to sign away our sover-
eignty over the site. Mr. Cohen, as Counselor of
the State Department, what do you have to say
about that^
CuHEX : The United Nations will acquire title to
the land by paying a fair price for it, as guaran-
teed by our Constitution. But there will be no
transfer of sovereignty, nor will there be any im-
])airment of the legal rights of the residents in
the area.
Hiss: There will, of course, have to be some
special arrangements with this Government for
policing the area, and so on.
Cohen : The area will remain part of the United
States and of the State or States in which it is
located.
Fisher : Coming back to the work of the United
Nations General Assembly — Congressman Bloom,
will you bring us up to date on its main accom-
plishments?
Bloom : Well, Mr. Fisher, this was an organiz-
ing session, and a great deal of the work con-
sisted of electing officers, setting up committees,
approving provisional rules of procedure, adopt-
ing a provisional budget, and so on. Dr. Paul-
Henri Spaak of Belgium did a beautiful job as
President of the Assembly.
Fisher : Now, what about the committees of
the Assembly? Mr. Hiss, what did they accom-
plish ?
Hiss : Most of the questions that came before the
Assembly were taken up first in one or another
of the six committees. Senator Connally was our
representative on the Political and Security Com-
mittee, which studied, among other things, the
five-power recommendation for an Atomic Energy
Commission.
Fisher: And the Committee's report on that
was adopted by the Assembly?
Hiss : Yes — unanimously.
CoHEX : It's highly significant that there was no
disagreement on this question, since it's one of
the most vital questions facing the United
Nations.
Fisher: Mr. Bloom, who serves on the Atomic
Energy Commission ?
Bloom: Representatives of the 11 members of
the Security Council plus Canada. This is the
group which will go out to Bikini Atoll to observe
the Navy's atom-bomb experiment.
Fisher: Mr. Cohen, you were directly con-
cerned with setting up this Atomic Energy Cpm-
mission. What will its job be?
Cohen : Its purpose is to inquire into the whole
range of problems created by the discovery of
atomic energy and related matters, and to provide
some plan for insuring that these new develop-
ments will be used for peaceful and not for de-
structive purposes.
Fisher: Then it won't be concerned with the
technical secrets of the atom bomb?
Cohen : No. It will not deal with military se-
crets, but with the political and social problems
created by the bomb and atomic energy in general.
It will devise rules to control atomic energy for
constructive purposes. The Commission has
power only to recommend and then the govern-
ments wnll consider its recommendations.
390
DEPARTMENT OF STATE BULLETIN
Fisher: Will it recommend turning the atom
bombs now in existence over to the United Nations
police or security forces?
Cohen: It's too early to say. The resolution
creating the Commission directs it to make pro-
posals for the elimination of atomic and similar
weapons from national armaments. In making
such proposals the Commission might recommend
that the bombs to be eliminated only from the na-
tional armaments should be turned over to the
United Nations, or it might recommend their
destruction.
Fisher : To get back to the Political and Secu-
rity Conmiittee of the Assembly — Mr. Hiss, what
other issues did it take up?
Hiss : Well, there was a spirited debate between
Senator Connally and Mr. Manuilsky of the
Ukraine on whether the World Federation of
Trade Unions would be the sole labor organization
to have consultative arrangements with the Eco-
nomic and Social Council.
Bloom : Which ended by the Senator and Mr.
Manuilsky shaking hands.
Hiss: Senator Connally maintained that the
A. F. of L. should also have a consultative status.
In the end the Assembly decided to recommend
that the A. F. of L. and the World Federation of
Trade Unions, to which the CIO belongs, both be
given consultative status.
Fisher: And what about the other Assembly
committees ?
Hiss: Congressman Bloom was our rejiresenta-
tive on the Economic and Financial Committee.
He can tell you about that.
Bloom : Its main job was reviewing the plans
for the economic and social ])art of the United
Nations. We also got action taken to broaden and
strengthen the financial support for UNRRA — the
United Nations Relief and Rehabilitation Admin-
istration. Some of us felt very strongly that the
peace and security of the United Nations depended
on UNRRA's work. How can you have a lasting
peace when people are starving, and babies are
crying for a piece of bread and something to keep
them warm?
Cohen : What Representative Bloom didn't say,
because lie is too modest, is that he was largely
responsible for getting agreement on the UNRRA
resolution. As you know, Mr. Fisher, he intro-
duced the original UNRRA legislation in the
House of Representatives, and he carried the same
fight forward in London. Mr. Philip Noel-Baker,
the British Minister of State, paid special tril)\ite
to Mr. Bloom's work on UNRRA.
Hiss : That's right. Congressman Bloom made
a great speech on this resolution, urging all of
the United Nations to come into UNRRA. Under
the Assembly's resolution, a committee has been
set up to encourage contributions.
Cohen : Along this same line, Mr. Stettinius
helped to secure passage of the resolution spon-
sored by the "Big Five" calling for drastic action
to meet the food famine which threatens large areas
of the world.
Fisher: Mr. Hiss, what other Assembly com-
mittees M'ere there?
Hiss: A third one was the Social, Cultural and
Humanitarian Committee. Mrs. Roosevelt was
our representative there, together with former
Senator Townsend.
Cohen: They did a good job under very difH-
cult conditions.
Flkiier: What was Mrs. Roosevelt's outstand-
ing acliievement, Mr. Cohen?
Cohen: First, winning the hearts of our Re-
l)ublican delegates; and second, her work on the
refugee resolution. She introduced this resolu-
tion on behalf of our Delegation and guided it
through lier Committee and the Assembly.
Throughout, she insisted that no refugees, except
war criminals, quislings, and traitors, should be
forced to return to their own countries against
their will. She eloquently defended her position
in the Committee and on the floor of the Assembly
and the final action fully upheld her position.
Fisher: Mr. Hiss, I believe another committee
covered trusteeship.
Hiss : Yes, Mr. John Foster Dulles represented
us on that Committee, together with Congressman
Bloom.
Bloom : Mr. Dulles did a fine job.
Hiss: Then there was the Administrative and
Budgetary Conmiittee.
Fisher: Who re|jresented us on that Commit-
tee, Mr. Hiss?
Hiss : Senator Vandenberg. He labored might-
ily on that, with the help of Don Stone of the
Budget Bureau. They had to go over a whole
mass of proposed administrative regulations, and
work out a provisional budget for the United
Nations. «
Fisher : Congressman Bloom, how much will
our share be?
Bloom : For the provisional budget, the Assem-
MARCH in, 1Q46
391
bly adopted approximately the saine scale of con-
tributions as the Food and Agriculture Organi-
zation has adopted. Our share of FAO expenses
is 25 percent.
Hiss : Most of the member countries won't want
any one nation to pay too large a proportion.
Bloom : No. If any single nation contributed
most of the funds, this might lead to a suspicion
that it could dominate the United Nations.
Fisher : Does that complete the list of Assembly
committees, Mr. Hiss?
Hiss: No, there's a sixth — the Legal Commit-
tee. Mr. Cohen, can you tell us about that?
Cohen : Former Postmaster General Frank
Walker was our representative on the Legal Com-
mittee. Among other things it examined the As-
sembly's proposed rules of procedures.
Fisher: Well, all this certainly shows what a
complicated job it is to set up a world organization.
CoiiEx : I'd like to say, before we close, that
every member of the American Delegation played
a leading role in some phase of the London meet-
ings. Every Delegate spoke in the Assembly and
by long hours of hard work contributed greatly to
the success of the meetings.
Fisher: Well, all this adds up to a major
achievement — getting an organization which is
necessarily as complicated as the United Nations
set up in the space of about a year, and not only
setting it up, but dealing with some of the hottest
issues facing the world at the same time. Of
course, there is plenty of criticism of the United
Nations already — and I suppose you would agree.
Congressman Bloom, that the Organization has
its shortcomings.
Bloom : There are those who think we should
set up a full-fledged world government right now.
My answer to them is this: We've got 51 nations
banded together, which is a good start, at least.
We went as far in delegating powers as the United
States Senate and the Soviet Government and
other governments were willing to go.
Fisher : You imply that the United Nations will
be further strengthened in the future?
Bloom : Of course. Nothing stands still — there
are bound to be changes and improvements in the
United Nations Charter, just as there have been
amendments to the United States Constitution.
But the machinery is soundly built, and it has
already shown it can stand stress and strain. Im-
provements in the Charter can follow in due time.
Let's give it a fair chance.
Commission of Experts To Prepare Report
on Italy-Yngoslavia Boundary
[Released to the press March 1]
Communique issued in London late Thursday
evening, Feimari/ 38, by the Council of Foreign
Ministers^ Deputies
In accordance with the decisions of the Council
of Ft)reign Ministers in September, the deputies
to the Council of Foreign Ministers have appointed
a commission of experts to prepare a report and
recommendations on fixing the boundary between
Italy and Yugoslavia, which boundary will in the
main be the ethnic line leaving a minimum popu-
lation under alien rule. In carrying out its task
the commission of experts will take into consid-
eration not only the ethnic composition of the
areas to be investigated but also their special eco-
nomic and geographical features.
The deputies have instructed the commission to
study the documents concerning the boundary
which have been submitted to the Council of For-
eign INIinisters by the Governments of Yugoslavia
and Italy, as well as the views which have been
submitted by other United Nations Governments
in accordance with the invitati(jns which were
extended to them by the Council of Foreign
Ministers.
The deputies have also instructed the commis-
sion to proceed immediately to the area in question
in order to study the ethnic composition of the
population as well as the special economic and
geographical features of that area.
On completion of its investigations on the spot
the commission will return to London where it will
prepare a final report and recommendations for
submission to the Council of Foreign Ministers.
The commission of experts will shortly arrive at
Trieste and will consist of : M. Wolfram (France) ,
M. Gerashchenko (USSR), Mr. Waldock (UK),
Dr. Mosely (US).
392
DEPARTMENT OF STATE BULLETIN
Freedom of Information —
A Check to Irresponsible Power
By ASSISTANT SECRETARY BRADEN
[Released to the press March 1]
It has been with pleasurable anticipation that
I have looked forward to attending this dinner.
For the privilege of being in your company and
for the honor of addressing you, I am grateful.
Also, I extend my sincere congratulations to the
recipients of the awards, which ai'e to be presented
here tonight.
This occasion is important on four principal
counts. First, it perpetuates the memoiy of Wen-
dell L. Willkie ; second, it does honor to representa-
tives of a race sti'uggling to surmount huge ob-
stacles; third, it encourages responsible jour-
nalism; and lastly, the Wendell L. Willkie awards
for Negro journalism exemplify in a gracio;US
manner the practical application of liberalism.
In all these particulars the occasion is symbolic
of the liberal, free spirit which is the liope of man-
kind in a world that has been forced to defend
itself — and nnist continue unremittingly to defend
itself — against intolerant ideologies directed at
its enslavement.
Wendell Willkie, like many great leaders, does
not fit into any one of the precise categories by
which men ordinarily judge contemjiorary public
figures. It would be as fatuous to assert that he
was a great man l)ecause he was an outstanding
internationalist or free-trader. Democrat or Re-
publican, industrialist or lawyer, as it would be to
attempt to sum up Abraham Lincoln's greatness
by saying he was an abolitionist. There were
thousands of abolitionists, but there was only one
Lincoln. It is on these essentially independent and
unifiue men, and they are few, that civilization
ultimately depends for its salvation. They are the
elect who, in the great crises of history, supply
the leadership which gives drive and direction to
the majority. In this connection let me quote to
you what Walter Lippmann said the other day in
a brief address conunemorating Willkie's birth-
day: "The independence of Willkie", he said,
"came not from eccentricity and the desire to be
different and conspicuous. It came from a pro-
found sense, which is embodied in his phrase that
this is 'one world', from the conviction that only
those who remain independent — letting no sepa-
rate party, class or cult possess them — that only
such men can become united with other men."
At this gathering, the sjiirit of liberalism is
represented, in action, by the presentation of
these awards for Negro journalism. These prizes
are directed not alone to the worthy winners but
in ultimate effect to an entire group of our popu-
lation, and they tacitly convey the message that
the e.ssential dignity of man, which is by right
inviolate, is not identifiable with any ethic con-
siderations but embraces all humanity.
The true liberal stands firmly on the success-
ful experience and accumulated wisdom of the
l)ast, as he constantly seeks for progress by sound
innovation. Liberalism, like so many other po-
litical and social concepts, is a word that has, in
recent years, been much abused. It has been ap-
])ropriated by both extremes of the political spec-
trum. Even advocates of totalitarian regimenta-
tion have not hesitated to claim it. I take it, how-
ever, that there is more than an etymological con-
nection between liberalism and JiheraUty and
liberty. Liberalism is an attitude of heart and
mind, expressed in a sort of spiritual magnanimity
and tolerance, an outgoing generosity toward one's
fellow man. It appreciates and cherishes the in-
trinsic worth of the individual, seeking always
to enlarge the scope within which the individual
may realize his worth. It breaks down the bar-
riers of ignorance, of prejudice, of poverty, of
malevolent self-interest, of bigotry — all of which
impede the free play of the human spirit and thus
degrade mankind. It looks for and hopes to find
a spark of the divine in all men, and believes that
the whole purpose of life is to cherish and en-
courage that spark whenever and wherever it
An address made at a dinner for Wendell L. Willkie
Awards for Negro Jouriialisni in Wasliington on Marcli 1.
MARCH 10, 1946
393
may be found. The liberal attitude is one essen-
tially of tolerance and justice which seeks to free
the spirit of man from its fetters.
The liberation of the human spirit has to cope
with two kinds of obstacles. On the one hand,
there are the restrictions imposed on great masses
of people by misguided and ruthless groups — I
might more correctly say gangs — generally at the
point of a gun and in the name of a false national-
ism. In our day this has taken the form of totali-
tarianism, which makes the individual the slave of
the state. On the other hand, there are the ig-
norance and poverty that frustrate the aspiration
to freedom and that make it impossible for men
to discharge the responsibility that goes with free-
dom. For men cannot be free unless they have the
means and the knowledge that enable them to
govern themselves. Freedom does not mean lack
of government; it means self-government. Self-
government, in tvn-n. depends on knowledge and
that purest integrity which can only come from
knowledge — and on economic opportunity.
This brings me to a principal point I wish to
make. The presentations being made here to-
niglit are awards for journalism, and as such they
recognize the vital importance of perfecting that
profession in the modern world. I venture to
say that if we could have responsible, fully in-
formed journalism functioning freely all over the
world today, there would follow, inevitably, a
rajjid solution of our basic social and political
problems leading toward the complete realiza-
tion of libeial ideals. When there is light, an
understanding is possible of the intricacies of so-
cial relationships; when there is imderstanding, a
solution is not far distant. As Senator Elbert D.
Thomas has stated : ''So long as man lives upon
the earth and is the social animal that he is. man's
relationship with man will continue to be the
most important thing in civilization. Men have
to work courageously together to improve their
relationships in world society."
Nothing is more important than that the people
everywhere have free access to information —
through books, through magazines, and chiefly
through the press and the radio. If they could
have this, they would quickly break down the bar-
riers of ignorance and prejudice, and, having re-
moved these obstacles, they would not allow them-
selves to be governed except by themselves. There
is no nation and no ai'ea on earth where the great
inass of people, representing the popular will, are
not opposed to war. If we have wars, neverthe-
less, it is in spite of the popular will, because large
populations are not permitted to govern them-
selves or are not furnished the means to govern
themselves. Consequently, they become the dupes
or the slaves of malevolent minorities. There is
no threat of war, however, where people are en-
lightened and self-governing.
Let me be more specific on this matter of free
access to information. No informed peoples, any-
where in the world, can justifiably feel apprehen-
sive that the Government of the United States will
take this country into a war of aggression against
them. The Government of the United States is
the servant of the American people, and the Amer-
ican people are irrevocably opposed to aggression.
There can be no doubt of the popular will in this
matter because it is freely expressed in the news-
papers, on the radio, through all the media of
public opinion, and through the machinery of
popular elections. No official, no general, no gov-
ernmental group could force this country, against
the informed and freely Expressed will of the peo-
ple, into a war of aggression. But within the last
quarter century we have Avitnessed the birth and
growth of governments which have been not the
servants but the masters of the people and the peo-
])le were simply tools of the dictators. If the
group in power in such countries as these wants
war, it has the means to obtain popular support
for going to war simply by insulating the people
against true information and furnishing them false
information. The government does not follow an
informed public opinion. On the contrary, a mis-
informed jiublic opinion docilely follows the gov-
ernment. Where a government commands this
irresponsible power, other countries must inevita-
bly look to the defenses.
At incalculable cost in human and material
wealth we have defeated the German and Japa-
nese regimes on the battlefronts — at sea, in the
air, and on land — all over the world. But the vic-
tory is incomplete. The Nazi's driven underground
remain and even are beginning to show their heads
again: Fascism as a word is repudiated every-
where but its advocates continue to propagate their
theories. Totalitarian ideologies and methods
contiinie to be a grave menace to liberalism and
liberty — and therefore to peace.
Before the war, from which we have just
394
DEPARTMENT OF STATE BULLETIN
emerged, there might have been some excuse for
indifl'ei'ence, for ignorance, and for blindness to
these ominous evils. But there can be no alibi
for neglect now. To repeat the same mistakes
again would be criminal. Certainly all of us are
painfully exliausted by the nervous and physical
strains of the war. It is far more pleasant to
snatch a breathing spell and to relegate to the
background affairs of moment and the great ideals
for which we fought. Just as selhsh purposes and
unethical practices have followed after other wars,
they are now appearing throughout our national
and international life. But unless these processes
are reversed, and that forthwith, the advance of
civilization may be retarded by centuries.
It is not sufficient tluit all the United Nations
are pledged to the defense of human rights and
civil liberties. Under our system of self-govern-
ment, it is imperative that each citizen, each group
in the community, and, yes, each democratic na-
tion be on the alert and actively defend the prin-
ciples for which they stand. The mere utterance
of noble sentiments and the signatiu'e of solemn
pacts is futile unless there be positive action
individually and collectively.
If free access to information were universally
established, as it is established in this country, ir-
responsible power would be impossible and the
informed will oi tlie people, freely expressed,
would obviate international suspicion and insure
the maintenance of jjeace. That is why I feel
justified in saying that peace and the realization
of our liberal ideals depend in large measure on
tlie free practice of responsible journalism
throughout the world.
The spirit of liberalism is and always has been
so much a part of this country that each citizen,
irrespective of his actual performance, at least
knows what are his rights and obligations, what are
his fundamental freedoms. But when the individ-
ual is molded into the community our collective
liberties too often are selfishly interpreted or for-
gotten and the highly practical objective of estab-
lishing a workable "one world"' is ignored.
It must be a matter of gratification to all liberals
that tiiese awards are made for good journalism,
that they are made in the name of Wendell Will-
kie, and tliat they are made in recognition of the
Negro's contribution to our society. This is a very
auspicious combination, indeed. May we all be
inspired and guided by it!
Program for Control and
Regulation of Japanese Trade
[Released to the press March 1]
Interim plans prepared by the United States
Government for the control and regulation of Jap-
anese trade with tiie United States are now nearly
completed. The major feature of the program is
that the Supreme Conunander for the Allied Pow-
ers, General MacArthur, will have complete op-
erating responsibility for all imports and exports,
utilizing, where appropriate, agencies, of the
United States Government or of the Japanese Gov-
ernment. The internatioinal aspects of Japanese
trade control are still being studied and informal
negotiations with other countries are imder way.
During the interim period Japanese exports to
the United States will be handled through the
United States Commercial Company, a subsidiary
of the Reconstruction Finance Corporation, which
has had experience conducting a similar operation
in Italy. The AVar Department will continue to
do most of the procuring of imports. Inquiries
concerning the availability of goods from Japan
are being handled in the United States by the field
oflices of the Department of Commei'ce, under an
arrangement made by that Department with the
United States Commercial Company.
Eventually, foreign trade with Japan will be
restored to private hands, in line with accepted
principles of United States commercial policy.
For the present, however, direct trading relations
between private traders and the Japanese are not
possible. One factor preventing the resumption
of private handling of foreign trade is the basic
financial instability and disorganization of Japan,
which render it impossible to establish a commer-
cial rate of exchange. Tight controls over for-
eign trade are required in order to assure that
selected Japanese exports are maximized in order
to provide funds for essential imports necessary
to prevent disease and unrest, that the volume of
such imports is held as closely as possible to the
level of exports, and that the Japanese do not evade
our strict control for security reasons of their over-
.seas assets and contacts. The damage resulting
from bombing, the shortage of coal, and general
uncertainty and disorganization resulting from de-
feat, and the prospects of destructions and re-
moval in carrying out economic disarmament and
reparations programs have so curtailed Japanese
MARCH HI, 1946
395
output as to reduce the volume of goods available
for export in the coming months to a small frac-
tion of the pre-war level. By means of this close
supervision, the possibility that United States
funds may have to be advanced in order to provide
subsistence during the initial recovery of Japan
will be minimized. The shortage of such facilities
as housing, transport, and food make it impossible
to open Japan to foreign business representatives
seelving to negotiate purcliase or sale contracts;
nor can Japanese be permitted to travel outside
Japan and negotiate until the Allied program for
repatriation of undesirable Japanese has been com-
pleted and Japanese foreign assets have been mo-
bilized for payment of reparations and I'estitu-
tion claims.
It is recognized that the Allies in the war against
Japan have considerable interests in Japan, both
as a source for imports and as a market for ex-
ports, whicli will be protected so far as the needs
of the occupation permit. In order that Allied
nations may be consulted on the problems of allo-
cating Japanese exports and procuring imports,
the United States will shortly submit for the con-
sideration of the Far Eastern Commission pro-
posals for the establishment of an Inter-Allied
Trade Committee. In the case of commodities in
short world supply, instructions with respect to
allocations will be sent through the Joint Chiefs
of Staff to the Supreme Connnander. These in-
structions will be based on consultations with this
Committee and with the Combined Committee
responsible for world allocation of the connnodity,
if it is subject to international allocation.
The major jjrospect for volume export in 1946
is raw silk. There are now on hand approxi-
mately 40,000 bales and about 10,000 additional
bales should become available each month. The
destruction of mulberry ti'ees during the war to
increase acreage for food growing will limit the
innnediate recovery of the industry to perhaps
one third of its pre-war output. Informal dis-
cussions on the distribution of raw silk exports
have been held with interested countries. A divi-
sion of exports roughly on the basis of the pre-
war takings by the major silk-using countries has
been suggested as one method of an international
division of the raw silk. Various proposals are
now being considered by the governments con-
cerned. It is expected tliat exports of raw silk
will begin at an early date.
The second export possibility is cotton textiles.
Output will be limited by the loss of spindles dur-
ing the war, many of which were scrapped or de-
stroyed by bombing. It is hoped, however, that
the operable spindles can be operated at capacity
to assist in meeting the extremely critical world
shortage in cotton textiles. The major problem
is the supply of cotton. Arrangements are nearly
completed for shipping cotton owned by the CCC
to Japan to be paid for by the sale of Japanese
textiles by the United States Commercial Com-
pany. Discussions are now in progress with
Japan's other major source of raw cotton — India —
concerning her possible particij)ation in this
program.
There are in addition small stockpiles of anti-
mony, tin, and rubber in Japan, which were built
up from imports during the war. All these items
would be useful in speeding reconversion in the
United States. There are also some tea, silk piece
goods, and art goods which may be available for
export.
In general it is the United States policy to en-
courage the reliance by Japan on exports of goods
with no military or security significance to procure
the foreign exchange which she must have if she
is to pay for the food, fertilizer, and other essen-
tial imports required to maintain a subsistence
standard of living, and if the burden on the occu-
pation forces is not to be increased. To this end
production and export of such items as silk and
tea, cei'amics, coarse grades of textiles, art and
t)ther handicraft articles are receiving encourage-
ment from this Government, though of course no
financial aid has been or will be provided by us in
the rebuilding of Japanese facilities for producing
exports.
Removal of Requirements
on Use of American Passports
[Released to the press Febriiar.T 26]
On February 12 the Department of State re-
moved the requirement that American citizens
must depart from the United States within 60
days after the issue of an American passport.
American citizens may now depart from the United
States if they are in possession of passports valid
upon the date of their intended departure.
396
DEPARTMENT OF STATE BULLETIN
International Understanding Through a
Cukural-Relations Program
By ASSISTANT SECRETARY BRADEN
[Released to tbe press March 1)
Tlie constructive influence of Columbia is not
confined by any means to the national stage. On
the contrary, it has long been a leader among our
educational institutions in providing facilities for
students from all parts of the globe. Today it
has undoubtedly the largest group of foreign stu-
dents of any university in the United States — I
understand there are some seven hundred of
them — and this in spite of the fact that its walls
are bulging with returned veterans. Columbia is
jilaying a large role in carrying out a program
tliat will, in the long run, contribute effectively to
the betterment of our international relations
thi'ough the elimination of international misunder-
standing: that is the program for exchanging
students with other countries. The. Department
of State has come, of late years, to appreciate the
fundamental importance of such a program and
consequently to assist in every way proj^er and
possible in carrying it out. I may add that
since the initiati(ju of the Department's own cul-
tural-relations program, embracing the exchange
of students and professors, there has usually been
a representative of Columbia sitting in consulta-
tion with it in one capacity or another. This is
a ])atriotic partnershi]) and a bond between us.
The fact that our (rovernment has come to as-
sume an active interest in this intermingling of
students from other nations with our own is pro-
foundly significant. It shows that we have, per-
haps belatedly, outgrown the old assumption that
international relations might safely be left exclu-
sively to the formal transactions of professional
diplomats, that friendly international cooperation
might be had simply by negotiation between gov-
ei'uments, even though the populations them-
selves remained isolated from one another or even
hostile. Such an assum})tion, while pr((])er to the
age (if Machiavelli's Pr'nice. is a dangerdus ana-
chronism in a democratic world. For governments
that repi-esent and serve peoples cannot jKissibly
collaborate in harmony if the peoples themselves
misunderstand and mistrust one another. The
prime fact for us to grasp is that international
iclations have today become relations between
jH'iiples rather than relations between independent
monarchs. If this is a change that has unlimited
possibilities for good, providing the whole basis
for our hope in the futvne of mankind, it is also
not without its dangers. To illustrate the dangers,
I need only refer to the change that has taken
place in the nature of warfare in modern times.
Today it is whole populations that go to war
against each other, not just small professional
armies serving the craft of individual princes.
Two centuries ago it was possible for Laurence
Stei'ne to set forth from his home in England on
his Snitime)ifal Journey through France and Italy
without even recalling the fact that his country
was at war with France, and without letting that
stand in his way when he did recall it ! The Eng-
lish Government was at war Mith the French
Government, not the English peojile with the
French people.
Now, the whole reason why the (lovermnent has
come to take an active interest in cultural inter-
change and the interchange of students may be
summed up in this : that if today it is entire peoples
who go to war. it is entire peoples who must go to
peace. There can be no real peace on any other
terms.
Charles Lamb once said : "I hate so-and-so be-
cause I do not know him." I can think of no better
way to eliminate fundamental misunderstanding
between peoples, and the bitter international mis-
tiust that arises out of it and leads down the road
to war, than by letting them know about each
other thi'ough the medium of a free press and
radio, on the one hand, and on the other by intro-
ducing them into each other's homes, letting them
Excerpts from an address delivered at the Columbia
University Club in Washington on Mar. 2. Requests for
I'oniiilete text should lie made to Division of Research and
Publication. Dpimrtmcnt of State.
MARCH 10, 1946
397
ininjik' and associate t(i<ivther in work and play
in the pursuit of common interests, until they no
longer regard each other as foreigners but as
friends and colleagues. The student from Latin
America who lives and works among us learns that
we are human beings, with the ordinary weak-
nesses of all human beings, and also with some
solid virtues. He learns that, while many of our
ways take getting used to, our basic disposition is
innately friendly and hospitable. Soon we are no
longer strangers to him to be mistrusted on that
score alone. Having come to know us, he will not
believe, when he returns to his country, that the
United States is composed of villains concocting
imperialistic designs against his country. He will
not believe this because he will have learned that
the American people are friendly, freedom-loving,
and fundamentally opposed to imperialism. He
can enlighten his own countrymen on that point.
Now, if you multiply this one example by many
thousands over a period of years — and it takes
time — you will be well on your way to constructing
the most solid possible foundation for interna-
tional peace in a democratic age.
The Department of State would be derelict in
its duty if it neglected the opportunity to further
these beneficent interchanges, which must involve
the pilgrimages of our students and professors to
the universities of other countries as w-ell as the
extension of hospitality by our institutions to stu-
dents and teachers from beyond our borders. But
this great enterprise, on which so much ultimately
depends, is not something that the Department of
State undertakes alone or in which it can play a
principal role. Students and professors were be-
ing exchanged through private initiative on a sub-
stantial scale long before this Government gave
thought to the matter. It is still largely the task
of |)rivate initiative and will continue to be. I am
told that only some three percent of the foreign
students now in the United States are here be-
cause this Government has made it possible for
them to come. AVhat the Government can do, and
what it is doing, is to assist in carrying out this
work. For one thing, it can work out agreements
with other governments to promote these ex-
changes, such as the Convention for the Promo-
tion of Inter-American Cultural Relations con-
cluded at Buenos Aires in 1936. For another, it
can provide funds to finance the visits of especially
meritorious students where they themselves lack
the means and where private organizations can
not provide tliem. In many other ways, the Gov-
ernment can and does act as a sort of catalytic
agent to promote and organize and develop these
exchanges, which ]irivate organizations carrj' out.
U.S.-U.K. Agreement on Radio-
Distance Indicators on Aircraft
[Released to the iiress February 25]
As a result of the Bermuda Telecommunications
Conference,^ conversations and demonstrations of
the United States 1,000 megacycle and Canadian
200 megacycle radio-distance indicators for air-
craft were held in Washington during the latter
part of January and the first part of February
1946.
This program was for the purpose of arriving
at the best practical course for providing this
important air navigational aid to aircraft in the
immediate future and of coordinating the future
development and {ilans in this field between the
United States and the British Conunonwealth and
Empire.
The necessity for such joint action was brought
about by the accelerated research program {pur-
sued during the war and the need for providing
frequencies for these distance indicators developed
during this war period by Canada, the United
Kingdom, and more recently by Australia. These
distance indicators were all designed to operate
in the 200 megacycle portion of the radio fre-
quency spectrum which, unfortunately, made
(hem unacceptable for unlimited use in the United
States because the frequencies in this portion of
the spectrum had been previously allocated to other
services in the United States. While this situation
did not prevent the members of the Commonwealth
and Empire from using the distance indicator
operating on 200 megacycles in regions where there
was no conflict with present frequency allocations,
it did prohibit its use in the United States, unless
an interim arrangement could he arrived at or a
frequency could be chosen which was mutually ac-
ceptable to the United States and the Common-
wealth and Empire.
' For article ou Bermuda Telecommunications Confer-
ence by Helen G. Kelly see Bit-letix of Jan. 20, 19-16, p. 59.
398
The demonstrations of the United States 1,000-
niegacycle equipment at Andrews FieUl. Washing-
ton, proved the workability of the American equip-
ment. However, after joint consultation between
technical representatives of the United States and
the Commonwealth, it was estimated that U.S.
1,000-megacycle equipment could not be made
available in quantity before the summer of 1947.
The Commonwealth representatives felt that the
need for a distance indicator was more urgent
in the Commonwealth than in the United States
where other reliable means have been in opera-
tion for some time but which do not exist through-
out the Commonwealth, and therefore a delay of
approximately one and one-half years in order
to make use of the 1,000-megacycle equipment
would >innecessarily slow down the Common-
wealth's civil-aviation program, particularly from
the safety standpoint. This fact was recognized
by the United States representatives, and it was
agreed that efforts would be made to secure a 15-
megacycle channel for this purpose, for a period
expiring not later than January 1, 1049. During
this interim period the United States and the Com-
monwealth will collaborate in the development of
a suitable distance indicator operating on a fre-
quency of 1,000 megacycles or higher. The exact
frequency band is to be determined jointly, not
later than January 1. 1947. and thereafter the gov-
ernments would pursue a combined development
program which would make the use of equipment
operating in the same band available for operation
prior to January 1, 1949.
The agreement, to be known as the "Arrange-
ment Between the United States of America and
the British Connnonwealth and Empire Concern-
ing Radio Distance Indicators" ^ was signed at
Washington, D.C., on February 7. 1946, leaving
open the exact frequency band of 1.5 megacycles
which would be made available for this purpose
but indicating that it would fall between the limits
of 210 to 235 megacycles. Sir Robert Watson-
Watt signed on behalf of the British Common-
wealth and Empire and Cecil G. Harrison, Tele-
connnunications Division, Department of State;
Maj. Gen. Harold M. McClelland, Air Communi-
cations Officer, U. S. Army ; Admiral E. E. Stone,
Chief, Naval Connnunications; Commodore E. M.
Webster, Chief, U. S. Coast Guaixl Communica-
tions; Mr. L. H. Simson, Civil Aeronautics Ad-
ministration; and Mr. Paul D. Miles, Federal
DEPARTMEI\T OF STATE BULLETIN
Communications Commission, signed on behalf of
the United States. Subsequently, the Interdepart-
ment Radio Advisory Committee has made the
necessary readjustments in the U. S. frequency
allocations table to provide for the interim use of
21C-231 megacycles for this purpose on a shared
basis, the U. S. Army and Navy agreeing to make
available the band 231-235 megacycles for the use
of the present occupants of the 21(')-220 megacycle
band, should interference result from the use of
the distance indicator at U. S. gateways, and also
the band 23.5-240 megacycles for use of the ama-
teurs in lieu of the present amateur band 220-225
megacycles which will be made available for the
distance indicator, for the interim period expiring
1 January 1949. On that date the frequencies in-
volved will again be available to the present
occupants.
Visit of Dutch Editors
[Released to the press March 1]
Six prominent Dutch editors arrived here on
March 1 for a six-day visit before going on to
New York City to complete their seven-week tour
of the United States as guests of the Department
of State's Office of International Information and
Cultural Affairs.
The members of the party are: H. J. Helleina,
editor of the Calvinist daily Trouu\ also repre-
senting De Rotfcrdammer, both organs of the Con-
servative Party; H. G. Hermans, assistant editor-
in-chief and parliamentary editor of De Maas-
hode, leading Catholic newspaper, also represent-
ing the Catholic daily De Tijd; L. J. Kleyn, chief
foreign editor of Het Vrtje Volk, who represents
the Social Democratic Press; A. J. Koejemans,
editor of the leading Communist daily De Waar-
held and member of Parliament ; A. J. P. Tannnes,
chief foreign editor of Nationcde Rotferdamsche
Courant. liberal newspaper, also representing the
Amsterdam liberal daily Algemecn HandchhJad;
and H. M. Van Randwijk, editor of the former
underground weekly magazine Vrij Nederhnid,
now one of the Netherlands' foremost magazines,
also rejiresenting the former underground news-
paper Het Parool^ now a leading Amsterdam
daily.
'Not printed.
MARCH in, 1946
399
Spanish Situation
The Department of State announced on Feb-
ruary 27 that the Secretary of State has on pre-
vious occasions indicated that we have over a
period of time been exchanging views with the
British Government and the French Government
in regard to the situation in Spain.
In connection with these exchanges this Govern-
ment has recently presented to the British and
Frencli Embassies in Washington and through
them to their governments certain American views.
Sufficient time has not yet elapsed during which
the French and British Governments could have
replied to these suggestions and for the time being,
therefore, the Department of State is not in a
position to disclose the nature of these views.
U.S.-U.K. Air-Transport
Agreement
STATEMENT BY THE PRESIDENT
[Released to the press by the White House February 2fi]
I want to express my satisfaction with the con-
chision of an air-transport agreement with the
United Kingdom at Bermuda on Fel)ruary 11. It
is now clear that very difficult problems in special-
ized technical areas in the relations of the two
countries can be worked out separately from the
over-all financial and trade negotiations which
took place during the fall. Under the Bermuda
agreement there will be no control of frequencies
and no control of so-called "Fiftlt Freedom"' rights
on trunk routes operated primarily for through
service. It gives to the airline operators the great
opportunity of using their initiative and enter-
prise in developing air transportation over great
areas of tlie world's surface.
Because civil aviation involves not only prob-
lems of transportation but security, sovereignty
and national prestige problems as well, the joint
working out of air transport agreements between
nations is a most difficult one. Many countries,
naturally desirous of having air transport com-
panies of their own, and with treasuries heavily
depleted by their war efforts, have a genuine fear
of the type of rate %yar with which the history of
various forms of transportation has been so full.
In the Bermuda agreement the Executive branch
of the United States Governnient has concurred
in a plan for tlie setting-up of machinery which
should protect against the type of rate war feared
by so many of the countries through whose air
space we desire that our airlines have the right
to fly. Part of the plan for future rate control
will be dependent on the granting of additional
powers by the Congress to the Civil Aeronautics
Board.
The major purpose of the two Governments in
regard to civil air transport has now been set
forth in writing and it reads :
"(1) That the two Governments desire to foster
and encourage the widest possible distribution of
the benefits of air travel for the general good of
mankind at the cheapest rates consistent with
sound economic principles ; and to stimulate inter-
national air travel as a means of promoting
friendly understanding and good will among
peoples and insuring as well the many indirect
benefits of this new form of transportation to the
common welfare of both countries."
I believe the results of this Conference consti-
tute a very important forward step.
The Foreign Service
American Consulates Reopened in
Germany
[Released to the press February 27]
The Secretary of State announced on February
27 that about March 1, 1946, American consulates
will be opened in Germany at the following places :
Berlin. Bremen. Frankfurt, Hamburg, Munich,
and Stuttgart. These offices will be staffed to pro-
vide normal consular facilities including: welfare
and protection work, issuance of American j^ass-
ports and visa facilities to persons entitled to non-
quota and first and second preference under the
Immigration Act of 1921. American passports
400
DEPARTMENT OF STATE BULLETIN
will be issued to American citizens in Germany to
enable them to come to the United States. Upon
the opening of the offices, publicity will be given
to the procedure to be followed by American cit-
izens desiring to come to the United States.
Concerning refugees and disphiced persons resi-
dent in the American zone of occupation on De-
cember 22, 1945 tlie Secretary referred to the
President's directive of that date ^ and reiterated
the desire of the American Government to join
with other governments to the extent permitted
by law in receiving a portion of these oppressed
people. He stated that the Interdepartmental
Committee which has been investigating the sit-
uation in Germany has reported that the largest
number of these displaced persons are located near
Munich and Stuttgart and. for that reason, the
consulates in those cities have been instructed to
grant visas, within the quotas authorized by law,
to qualified persons resident in those districts on
December 22, 194,5. The other consulates at Berlin,
Bremen, and Frankfurt which are under Amer-
ican administration will consider such cases in
the near future.
Full information concerning the requirements
is being circulated in the various camps in Ger-
many. Relatives or friends resident in the United
States who are able and willing to give financial
assistance and assurance of support to displaced
persons who were resident in the American zone
on December 22, 1945 should communicate with
the appropriate consul through the Department of
State.
A sponsor may forw.ird an envelop containing
only affidavit of support and corrol^orative evi-
dence addressed either to the American Consul at
Stuttgart or the American Consul at Munich, in
care of the Department of State, Wasliington 25,
D.C. The envelop should bear postage at the reg-
ular foreign rate (five cents for the first ounce;
ihree cents for each additional ounce or fraction)
and should be marked "Contains innnigration sup-
jxirt documents only". Air mail or registry serv-
ice will not be provided.
Sponsors who wish to defray the cost of the
visa fees, amounting to $10 on behalf of each visa
' Bulletin of Dec. 23, 1945. p. 983.
applicant, may send this amount under separate
cover in the form of a money order or a certi-
fied check to the order of the Secretary of State
with a covering letter giving the name of the alien,
his address if known, and the nearest consular of-
fice. The funds so deposited will be held in a
special account, and the appropriate consular
officer will be notified by the Department regard-
ing the deposit made to cover the visa fees for
the alien in question.
The Department will be unable for the present
to transmit through consular offices to persons in
Gei-many any messages, letters, or funds. Ar-
rangements for these services on behalf of Ameri-
can citizens will be made as soon as possible.
Consular Offices
The American Cousulate at MalmO, Sweden, was closed
on February 20, 1946.
The Congress
Authorizing AppointniHnt of Additional Foreign-Service
Officers in the ( "hissifled Grades : H. Rept. 1.590, 70th Cong.,
To accompany H. R. 5244. 3 pp. [Favorable report.]
Amending Section 201 (G) of the Nationality Act of
1940; S. Kept. 989, 79th Cong., To accompany H. R. 388.
2 pp.
DE WOLF— Continued from pafje-SIS.
serious damage to those channels, as well as to any
other United States chamiels, a provision has been
included in the Interim Agreement whereby the
goverinnents concerned will cooperate with a view
to minimizing interference as occasion requires.
In view of these considerations and speaking on
behalf of the Department of State, I can only con-
gratidate all of you on your efforts and express
the sincere hope that the agreement in this Con-
ference may be an encouraging augury of further
and sympathetic collaboration as problems in this
important field of standard-band !>roadcasting
confront us.
PUBLISHED WITH APPROVAL OF DIRECTOR OF BUREALI OF THE BUDGET
U S GOVERNMENT PRINTING OFFICE: 1946
S :^,
THE DEPARTMENT OF STATE
msim
VOL. XIV, NO. 350
MARCH 17, 1946
The American Trade Proposals: Trade Barriers Imposed
by Governments
Article by MARGARET POTTER . . . . . . . page 403
Understanding Among Peoples
Dv ASSISTANT SECRETARY BENTON
page 408
Docnments Concerning Spain-Enropean Axis Relations
page 413
Promotion of Child Weltare injthe American Republics
Article by ELIZABETH SHIRLEY ENOCHS page 428
Vve^NT o^
For complete consents
see inside cover
'ates o^
u. t.
THE DEPARTMENT OF STATE
BULLETIN
^^•txT o.
Vol. XIV 'No. 350
Publication 2493
'^^r.- o» *■
March 17, 1946
For sale by the Superintendent of Document*
U. S. Government Printing Office
Washington 25, D. C.
Subscription:
52 ieeues. $3. SO; single copy. 10 cents
Special offer: 13 weeks for $1.00
(renewable only on yearly basis)
The Department of State BULLETIN,
a weekly publication compiled and
edited in the Division of Research and
Publication, Office of Public Affairs,
provides the public and interested
agencies of the Government with
information on developments in the
field of foreign relations and on the
work of the Department of State and
the Foreign Service. The BULLETIN
includes press releases on foreign
policy issued by the White House and
the Department, and statements and
addresses made by the President and
by the Secretary of State and other
officers of the Department, as well as
special articles on various phases of
international affairs and the functions
of the Department. Information con-
cerning treaties and international
agreements to which the United States
is or may become a party and treaties
of general international interest is
included.
Publications of the Department, cu-
mulative lists of which are published
at the end of each quarter, as well as
legislative material in thefield of inter-
national rela tions, are listed currently.
SUPERINTENDENT OF DUCuti.i
APR S3 1946
Contents
Page
The American Trade Proposals: Trade Barriers
Imposed by Governments '
Article by Margaret Potter 403
Understanding Among Peoples
By Assistant Secretary Benton 408
Position of France, U. K. and U. S. on Relations
With Present Spanish Government 412
Appeal to Private Citizens To Meet Food Crisis . . 412
Documents Concerning Relations Between the
Spanish Government and the European Axis . 413
Postponement of Conference at Rio de Janeiro . . 427
Resignation of Adlai Stevenson 427
Promotion of Child Welfare in the American Re-
publics
Article by Elizabeth Shirley Enochs 428
International Organizations and Conferences
Calendar of Meetings 431
Activities and Developments:
The Far Eastern Commission 431
*The North Atlantic Route Service Conference 432
Report on UNESCO 432
^International Monetary Fund and the International Bank
for Reconstruction and Development 433
Record of the Week
U. S. Position on Soviet Troops in Iran: Note Sent to Soviet
Government 435
♦Financial Agreement With the United Kingdom: Resolution
From Advisory Board of Office of War Mobilization and
Reconversion 436
U. S. — U. K. Financial Agreement. Statement by Assistant
Secretary Clayton 437
U. S. — French Positions on Establishment of Central Ger-
man Agencies 440
*Repatriation of U. S. and Soviet Citizens:
Statement by the Department of State 443
Text of Agreement 444
♦Disposal of the German Merchant Fleet. Report of the
Tripartite Merchant Marine Commission 445
Special Diplomatic Mission to the Yemen 446
Restoration of Properties of American Nationals in Bulgaria . 446
U. S. Urges Inclusion of Opposition Parties in Bulgarian
Government 447
Procedure for Transporting Automobiles to American Zone
in Germany -147
Ashes of Late Mehmet Miinir Ertegiln To Be Transported
to Turkey 447
Industrial Enterprises in Manchuria 448
Tribute to General MacArthur 449
Extent of General MacArthur's Jurisdiction in Pacific . . . 449
* Treaty information.
(Continued on page 452)
The American Trade Proposals: Trade Barriers
Imposed by Governments
Article by MARGARET POTTER
WOULD TRADE is of great ooncei'n to the United
States. Since 1934, this country — through
tlie Hull Trade Agreements — has been actively
pursuing a policy of lowering trade barriers.
Now, with the war over and the great tasks of
reconstruction begun, this country has the oppor-
tunity to use its economic ]eader.ship to guide the
world toward the goals of increased international
trade conducted on a basis beneficial to all, with
greater freedom than was possible in the past.
We cannot create such a world single-handed; it
requii'es the help of all trading countries.
In an attempt to move in the direction of reduc-
ing trade barriers, the United States Government
on December 6, 1945 issued its "Proposals for Ex-
pansion of World Trade and Employment".^
These Proposals have been cax-efuUy prepared by
experts from many interested departments and
agencies of the Government. They are published
as a basis for discussion which, it is hoped, will
lead to a world conference on trade and employ-
ment. In a joint statement with the United States
Government, the British Government has stated
that it "is in full agreement on all important
points in these proposals and accejits them as a
basis for international discussion; and it will, in
common with the United States Government, use
its best endeavors to bring such discussions to a
successful conclusion, in the light of the views
expressed by other countries".^
As a first st«p, the United States has invited
15 countries to participate in a preliminary meet-
ing at which mutual trade-barrier reductions
would be negotiated and at which recommenda-
tions to the world conference would be prepared
regarding general policies in the field of inter-
national trade.
The Proposals themselves are comprehensive,
dealing not only with governmental barriers to
trade, but also with those imposed by private busi-
ness organizations, and with international agree-
ments concerning certain commodities that offer
si^ecial problems in world trade. The inter-
national aspects of domestic employment policies
and the structure of a proposed International
Trade Organization are also covered. These sub-
jects will be treated in separate articles to appear
later. The present article discusses those sections
of the Proposals dealing with governmental trade
barriers.
The International Trade Organization would
function, within the system created by the Charter
of the United Nations, as the central interiuitioual
forum for the discussion of problems relating to
international trade and trade barriers, and for the
formulation and recommendation of methods of
dealing with such problems. Its charter would be
adopted at the woi-ld conference on trade and em-
ployment, and its original membership would con-
sist of all nations participating in that conference
which accepted membership in it. The funda-
mental purposes of the ITO, as outlined in the
Proposals, would be to promote international
commercial cooperation, to enable members to
avoid recoui'se to measures destructive of world
commerce, to facilitate access by all members on
This is the first of a series of five articles to appear in
the BULLETIN on "Proposals for Consideration by an
International Conference on Trade and Employment".
The other articles will discuss cartels, commodities pro-
posals, employment, and international trade organization.
Mrs. Potter is a Divisional Assistant in the Division of
Commercial Policy, Office of International Trade Policy,
Department of State.
Bulletin of Dec. 9, 194.5, p. 912.
403^
404
DEPARTMENT OF STATE BVLLETHS
equal terms to the trade and raw materials of the
world, and, in general, to promote the expansion
of production, exchange of goods, and high levels
of employment and leal income.
Government Barriers to Private Trade
There are four general ways in which private
trade can be restricted by governments : tariffs antl
preferences, quantitative restrictions, exchange
control, and miscellaneous administrative controls.
In addition, governments have distoi'ted the flow
of trade and in some cases restricted i( — directly
or indirectly — through improper use of subsidies
and state-trading organizations. For each of these
types of government regulation of trade it is the
objective of the Proposals to present a generally
acceptable code of principles which will permit an
expanding flow of world trade.
Tariffs and Preferences
Of all the barriers to trade which grew up be-
tween 1930 and the outbreak of AVorld War II,
tariffs and preferences bulk perhaps the largest
in the minds of the American and British peoples,
since measures of this kind form the principal
trade barriers used by the United States and
the British Commonwealth countries. The United
States has used tariffs primai'ily. Our Tariff Act
of 1930 not only reduced the volume and value of
United States foreign trade and of world trade,
but also had an exceedingly bad psychological ef-
fect upon other countries then reconsidering their
trade policy, since its enactment strengthened the
hand of protectionist elements everywhere and en-
abled them to obtain more drastic increases in the
I'estrictions maintained by their respective coun-
tries than the situation actually warranted.
Preferences adopted by the British Connnou-
wealtli countries at Ottawa in 1932 were among the
first and most directly traceable answers to the
American tariff increase. These preferences not
only increased bairiers against imports of non-
Empire goods (since, in most cases, existing rates —
or free entry — became the preferential rates while
non-Empire countries paid new higher rates), but
also introduced an element of discrimination tliat
seriously distorted trade channels.
Given the historical connection between the in-
crease in the American tariff and the expansion of
Commonwealth preferences, as well as their real
importance in world trade, the reduction in
American tariff's and concurrent measures to do
away with the system of preferences nuist occupy a
key position in any effort to relax trade barriers.
Under the trade-agreements program, a start was
made toward this objective. The renewal and
strengthening of the Trade Agreements Act by
Congress now makes it possible to do more.
The United States Proposals attack the related
problems of tariff's and tariff preferences as a unit.
According to this plan, members of the proposed
ITO would undertake to enter into arrangements
for the substantial reduction of tariffs and for the
elimination of tariff preferences, the latter action
being taken in conjunction with adequate action
to reduce other trade liarriers and in connection
with the other nnitually advantageous arrange-
ments contemphited by the plan. The arrange-
ments proposed would be negotiated, so far as the
T'nited States is concerned, under the procedures
of the Trade Agreements Act.
Existing international commitments, of the kind
concluded between the Commonwealth countries
at Ottawa, would not stand in the way of any ac-
tion on preferences which might be negotiated.
Negotiated tariff concessions would operate auto-
matically to reduce or eliminate preference mar-
gins, and no new or increased margins woidd be
permissible.
To complete the picture, the plan contemplates
that export duties would be subject to negotiation
in the same way as impoit duties, and that all ex-
port preferences (export duties which are higher
or lower according to the de.stination of the goods)
would be prohibited.
The tariffs and preferences section of the Pro-
posals concludes with a jnovision that intergovern-
mental tariff-reduction agreements should contain
a general safeguarding clause permitting the par-
ticipating countries to take necessary measures to
prevent sudden and wide-spread injury to their
domestic producers caused by excessive imports
under imforeseen circumstances. Experience un-
der the trade-agreements program indicates that
provisions of this nature are practicable.
Quantitative Trade Restrictions
Prior to 1930 the principal form of trade regula-
tion in use by most trading nations was the tariff.
From that time to the outbreak of war. however,
there developed wide-spread resort to the use of
MARCH 17, 1946
405
proliibitioiis and absolute quantitative limits on
the anuiunt or Aalue of imports of specified com-
modities.
Durinfi the war the scarcity of shipping space,
the world shortage of certain materials, the lack
of foreign exchange available to most countries,
and similar considerations led all countries to ex-
tend quantitative control to nearly all import and
export trade.
Long before the war it had become apparent
that quantitative controls provide the most effec-
tive of all methods of olistructing the How of trade.
By the same token, they have been the most formi-
dable bariier to the expansion of trade. In co)i-
siderable degree trade can adjust itself to tariffs,
even to rather high tariffs. There is no way, how-
ever, in wliicli trade can adjust itself to an outright
prohibition on imports oi' to a restrictive quota.
The existence of a quota in all cases adds to the
routine work involved in importing, and a delay
in the delivery of goods ordered at a time when
a (juota was unfilled has often meant that entry
has been refused because the quota had been filled
before the goods arrived. Such incidents can
seriously discourage imports.
Under the United States Proposals quantitative
restrictions would be eliminated, in principle, both
as regards export and import trade, in conformity
with the general purpose of avoiding recourse to
measures destructive of world commerce.
A number of exceptions to the general prohibi-
tion of quantitative restrictions are provided in
tlie Proposals. Some provide for strictly tempo-
rary emergencies such as a domestic shortage of
foodstuffs which may require domestic rationing
of a product and limitation of exports by quota.
One supjjlements and parallels the Bretton Woods
arrangements to take care of balance-of-payments
difficulties. Two others provide for import quotas
which may be authorized by an intergovern-
mental commodity agreement conforming to the
principles set forth elsewhere in the Pi'oposals
or which may be imposed on agricultural imports
in connection with certain types of domestic gov-
ernmental agricultural programs.
While the exceptions outlined above are in the
aggregate substantial, it would be a mistake to
assume that they by any means nullify the general
proposal that quantitative restrictions be abol-
ished. Only three of them permit permanent or
quasi -jiermanent import quotas. Also, all such
quotas would be operated under approved pro-
cedures subject to international safeguards and
would be imposed only in genuine hardship cases
in which failure to use quotas might result in
injury to the international conuaunity greater
than would be involved in the use of quotas.
Exchange Control
At one time or another in the last two decades
almost every government has exercised some kind
of control over the purchase and sale of foreign
exchange. For some, like the United States, ex-
change control has been principally a wartime
measure and in any case would, in all probability,
largely disappear as post-war conditions became
more settled. But for other countries exchange
control had become before the war an important
element of foreign economic policy wiiich, in the
absence of international agreements to the con-
trary, would i^robably be continued after the war.
The control of payments to foreign countries is
necessarily closely related to the control of foreign
trade, and many countries found that the ex-
change-control mechanism was a most useful
means of enforcing trade policy. By direct, de-
tailed, and flexible methods of granting or refus-
ing licenses for the purchase and sale of foreign
exchange, and by stipulating the conditions and
rate of exchange, it was easy to undertake and
to conceal questionable practices in a way not
possible by the use of quotas and tariffs alone.
Foreign-exchange controls are particularly easy to
manipulate so as to discriminate among foreign
supjjliers of goods.
The Bretton AVoods International Monetary
Fund Agreement takes detailed account of ex-
change-control problems. By providing fimds for
stabilization puri)oses it reduces the need for ex-
change control. The Fund Agreement, therefore,
provides for the elimination of exchange controls
after a transitional period, except in specified cir-
cumstances. It also .sets up standards to ensure
that wjien excliange controls do exist they shall
not be used to discriminate against any member
country after a transitional period. With the
Fund Agreement in existence it seemed unneces-
sary to incorporate elaborate exchange-control
provisions in the United States Trade Proposals.
Yet. Ijecause of the great influence of exchange-
control policies on world trade, the subject could
not be entirely omitted from the Proposals, and
assurance was necessary that the principles of the
International Monetary Fund would be adhered
406
DEPARTMENT OF STATE BULLETIN
to so that the multilateral trading principles would
not.be nullified by national exchange-control poli-
cies and practices. Therefore, the simple provi-
sion is made that members of the ITO shall abide
by the exchange principles of the International
Monetary Fund. In another article the principle
of equal treatment for all members of the ITO in
the administration of such exchange controls as
may exist is reaffirmed. There are some cases un-
der the Fund Agreement in which the approval
of the Fund is required for certain practices, and
the Proposals suggest that when members of the
ITO are affected the Organization should be con-
sulted by the Fund.
By these simple provisions an important link
is established between two international organiza-
tions in related but distinct fields. Such inter-
locking is a good demonstration of the several
approaches necessary to the goal of an expanding,
multilateral world economy. At the time the
Bretton Woods Proposals were being discussed,
spokesmen for the United States and other gov-
ernments made it clear that the Fund was not
being proposed as a single, separate instrument
that should alone solve world monetary problems.
Now that the Trade Proposals have been made
public, the role of the Fund can be seen in gi-eater
perspectilve, and the intimate relation between
the two is perhaps most clearly demonstrated in
the exchange-control provisions of the Trade
Proposals as just summarized.
General Commercial Provisions
In addition to the well-defined and regularly
recurring trade practices by which trade has been
restricted and diverted into uneconomic channels
for reasons of military or political strategy, be-
cause of exchange difficulties or for other reasons,
states have in the past made use of a great variety
of regulations of a miscellaneous character which
have had much the same effect. In some instances
such measures have been conscious efforts to give
protection to domestic interests ; elsewhere a more
or less unintended confusion of regulations, re-
strictive in effect, has resulted from the frequent
changes necessitated by pre-war difficulties or war-
time trade conditions. Consequently, a thorough
overhauling of all countries, customs regulations
and other administrative controls affecting im-
ports is an essential part of a well-rounded pro-
gram of trade-barrier reduction.
The Proposals aim to eliminate discrimination
thr(;ugli customs and administrative regulations,
and to moderate their restrictive effects by secur-
ing agreement to the reduction of excessive charges
and to the standardization and simplification of
procedure. For example, a variation of the ex-
cessively protective tariff is the requirement that
imported goods pay higher internal charges than
competing domestic products. This is a form
of protection which would be abandoned under
the Proposals. Higher transportation charges for
imported goods and restrictions on the free move-
ment of foreign goods within the importing coun-
tries are sianilar in efi'ect, and would also be elim-
inated if the Proposals were adopted.
A more subtle form of protection, more diffi-
cult to measure and more apt to be discriminatory
in effect as among foreign suppliers, is the use of
arbitrary valuation methods as a basis for assess-
ing duties. On this point the Proposals not only
suggest the adoption, as soon as practicable, of
principles designed to assure the use of true com-
mercial values as a basis for a.ssessing duties, but
also look toward acceptance of a standard code of
valuation practice. An attempt is made to pre-
vent another kind of discrimination in the propo-
sal that there be developed and adopted a standard
definition of the cases in which antidumping and
countervailing duties may properly be applied.
Other Government Practices Affecting World
Trade
The provisions already described complete the
sections of the Proposals dealing with govern-
mental measures which operate primarily to re-
strict private trade. Under the general heading
of barriers to trade, the Proposals also deal, how-
ever, with two other governmental practices which
sometimes constitute trade barriers. One such
practice, the use of subsidies, if it affects interna-
tional trade at all, operates primarily to distort
the direction of trade ; the other, the use of state-
trading organizations, may obstruct trade either
by distorting its direction or by restricting the
total volume of trade both public and private.
Subsidies
In an effort to improve the incomes of producers
of various goods — particularly agricultural com-
modities, of which prices had fallen disproportion-
ately to other prices during the depression and
after — and sometimes for other reasons, various
countries have adoj^ted measures to subsidize pro-
MARCH 17, 1946
407
ducers of certain conmiodities. In some cases sub-
sidies have related to domestic production, as
do direct payments to producers or public pur-
chases of the commodity at minimum prices.
Others have been paid upon exports of the com-
modity from the country employing the subsidy.
Some subsidies of the first class have not affected
international trade at all or not significantly, but
many others have resulted either in decreased im-
ports into the country employing a subsidy or in-
creased exports from it. Export subsidies and all
domestic subsidies which have operated to force
increased exports on world markets have in turn
increased competition in world markets already
depressed by surpluses, and have made it increas-
ingly difficult for equally or more efficient sup-
pliers in other countries to obtain remunerative
prices for their produce. Apart from these eco-
nomic difficulties, the use of subsidies to promote
export^s has also tended, in competing exporting
countries, to create fear of increased subsidies and
resentment against the country employing them.
Under the Proposals, subsidies are treated under
two main categories: those related to domestic
production and those which take the form of ex-
port subsidies. Domestic subsidies which do not
operate to increase exports or to reduce imports
would not be subject to any international proce-
dure at all, but all domestic subsidies which have
such international effects would be reported to the
ITO. It nuiy be assumed, for example, that under
these Pi-oposals payment of a subsidy to maintain
pilot plants for industries essential to national
defense might fall entirely outside the purview of
international regulation. On the other hand, a
subsidy paid to maintain commercial operations
by an industry required for national security
might, without causing serious damage to the trade
of any other country, have international effects
and so require reporting to the ITO.
If the domestic subsidy were such as to cause
serious damage to the trade of another country,
the subsidy would not only be reported but an ef-
fort would be made to reach agreement regarding
limitation of its use. Such might, for example,
be the case if a subsidy were maintained to en-
courage home food production in a country which
would otherwise require considerably larger im-
ports of foodstuffs.
For export subsidies, separate provision is pro-
posed. Because of their immediate and disturbing
effects upon the trade of other countries, it is con-
templated that their use would in general be aban-
doned after an initial transitional period. How-
ever, in the case of commodities in bui-densome
world surplus, export subsidies could still be used
within reason either under an approved interna-
tional commodity agreement or if efforts to con-
clude such an agreement had failed. This provi-
sion would, for example, permit the continuance
beyond the transitional period of United States
export subsidies on two commodities which have
presented troublesome surplus problems in the
past, namely wheat and cotton, only if (1) it had
been shown that both were in burdensome world
surplus, (2) an approved international commodity
agreement had been concluded, under which the
subsidies were being operated, or (3) efforts to
reach an international commodity agreement had
failed. Even so, the subsidy would not be oper-
ated to increase the United States share in world
trade in these commodities, as compared with a
previous representative period.
State Trading
The term state trading is one which, to most
Americans, immediately calls to mind the practice
of requiring all exports or all imports to be sold
and purchased through a single governmental
trading company, either for purposes of manag-
ing the country's foreign-exchange resources or
as a part of a domestic production-control pro-
gram. Actually, the term is much more inclusive
and as such applies to the operations of a number
of United States governmental agencies. Pur-
chase of strategic materials or of agricultural
products by governmental agencies for resale,
either to ensure supplies or to support or control
prices, is a form of state trading. Foreign state
monopolies, such as the tobacco and match regimes
maintained by several countries for revenue pur-
poses, fall in the same general class.
The various possible practices of state-trading
organizations affect international trade in vary-
ing degrees. Major commercial-policy problems
regarding state trading arise mainly from the use
by such organizations of methods which are re-
strictive of trade, whenever used, and, secondly,
from the difficulty of applying to state-trading
organizations the standards of commercial prac-
tices that have grown up in connection with
private trading. The Proposals, therefore, seek,
(Continued on page 430)
408
DEPARTMENT OF STATE BULLETIN
Understanding Among Peoples
By ASSISTANT SECRETARY BENTON
I AM HERE to pay ti'ibute to the job your motion-
picture industry did in the winning of the war
and to discuss with its executives the part the mo-
tion-picture industry can play in the planning ot
the peace.
I am here to discuss the most urgent and im-
portant and difficult task we face — how to advance
the cause of understanding among the peoples of
the world.
The contribution any one group, any one agency,
any one government can make to this task is puny
when it is measured against the staggering im-
mensity of the problem. This is a task to which
every civilized man must dedicate himself and
every civilized man is not a man too many.
The first task of my Everyman is to support our
participation in the founding of the United Na-
tions Educational. Scientific and Cultural Organi-
zation— UNESCO — which is to be a part of the
United Nations Organization. UNESCO is a part
of my responsibility in the State Deiiaituient. I
should like to quote briefly from the draft consti-
tution of UNESCO.
I quote: ". . . since wars begin in the minds
of men. it is in the minds of men that the defences
of peace must be constructed; peace based ex-
clusively upon the political and economic arrange-
ments of goveriunents would not be a peace which
could secure tiie unanimous, lasting and sincere
support of the peoples of the world, . . .
peace nnist therefore be fouixled. if it is not to fail,
upon the intellectual and moral solidarity of man-
kind.
"For these reasons, the States parties to this
Constitution, believing in full and equal oppor-
tunities for education for all, . . . are agreed
and determined to develop and to inci'ease tlie
means of connnunication between tlioir peoples
and to emjjloy these means for the inu-poses of nu\-
An address delivered in Los Angeles, Calif., i>u M:ir. (i.
1946.
tual understanding and a truer and more perfect
knowledge of each other's lives".
The hopes of millions of people — unspoken
hopes for the most part — may presently be cen-
tered in UNESCO. That hope will spring from
their faith that ordinary men and women every-
where want to understand each other, want to
know the best of each other's work and thought;
and that out of such understanding will come
peace and growth.
Largely at the urging of the American Delega-
tion, the preliminary conference meeting in Lon-
don last November agreed that UNESCO should
stimulate the use of the mass media of education —
radio, the press, and motion pictures — rather than
concentrate on achieving cooperation among sci-
entists, scholars, and technical experts, which has
been the tradition of predecessor organizations.
A second task for my civilized man stems from
an Executive order last summer in wliich Presi-
dent Truman called upon the State Department to
fornndate a peacetime jtrogram under which we
could present abroad what he called a "full and
fair jiicture of American life and of the aims and
policies of the United States Government".
Such a program has now been worked out under
my direction in the State Dejiartment. This pro-
gram is designed to help replace with knowledge
and understanding the ignorance and suspicion
that now exist throughout the world about the
United States. The budget proposed last week
to Congress for this program amounts to about
one fifth of one percent of the budget proposed
by tile Arjny and Navy for achieving peace
through force of arms and the threat of force. It
is a new enterprise for the American Government
in peacetime. I know you expect me to devote my
remarks today to this new form of government
enterprise.
Our country Mas a world pioneer in proclaiming
the right of the individual to liberty, in the Dec-
laration of Independence. You will recall a
MARCH 17. 1946
409
pliiase ill the first line of that (hieiiuient — the an-
cestor of my program of today in the State De-
partment— "a decent respect to the opinion of
mankind". The autluns of the Dechxration were
addressing themselves to peciple everywhere, not
just to those in the Colonies.
Thirteen years later the Constitution went a
long step further. It proclaimed the ahsolute
sovereignty of the people as a whole over all gov-
ernment and all officials. These two principles —
liberty for the individual, sovereignty for all the
people — form our most saci"ed heritage.
In these decisive moments of wcu-ld ferment,
other nations are in various stages of reaching for
attainment of these two principles. All stages are
represented, from serfdom and bondage in some
areas to liberty and democracy in others. But
today the peoples of the world wield greater power
by far than ever before. As all of us know, 170
years of American example are at least partially
responsible for this rise in "power of the peoples
of the world. Perhaps all of us can agree on one
sure, long-range prediction : the power of the peo-
ple will continue to rise.
In the case of those areas in which the people
have little or no apparent voice, the world's best
hope for peace lies in their rising to power. That
is why it is vital to our interest that tlie peoples of
other nations — and not merely their rulers — ac-
quire an understanding of the United States.
Willi understanding of us, we can hope that almost
all peoples will join with us as willing friends and
allies. This is important to our trade and com-
merce in peacetime. It is vital to our security in
time of crisis. It is more effective as well as
cheaper to win allies through understanding rather
than through fear of our economic power and our
military force.
Today at Nuremberg and elsewhere war crimi-
nals are being tried. They are the former rulers
who plunged the world into war. They might
well have been powerless if their peoples had
known the truth about the United States. The
war was made possible by the lack of knowledge
of the peoples of Germany. Italy, and Japan of
the potential military power of the United States.
They did not know that we were powerful- —
powerful beyond their wildest dreams of their
own strength. They were told we were weak and
divided, our economy out of kilter, our people
starving — and thev believed it.
They were told, above all, that the American
system is degenerate and debilitated, that democ-
racy is hypocrisy and so-called freedom a joke.
They were told that our leaders were scoundrels:
that our culture was semi-barbaric; our ideals
tainted : our morals base. And they believed all
this and more.
The fighting is over, but that great lesson from
tJie war is before us today. Another war seems
cei'tain if the peojiles of the world again think of
us in the same way. All our treaties, all our in-
ternational organizations, all our material aid
will mean nothing without an accompanying
knowledge, b}' other jjeople, of the realities of the
United States.
The need for understanding is more important
now than it ever was before, for three definite
reasons.
The fir-it is that the new international collabora-
tion in which we are now engaged extends to
almost every Held of human activity — not only to
traditional aspects of foreign relations such as
military security, armaments, boundaries, treaties,
trusteeships, trade agreements, and the like, but
also to transportation, communication, education,
health, agriculture, the fine arts, and science. Our
American representatives meet with others almost
continuously. Policies are laid down, decisions
are made, day after day, most of them affecting
other peoples as well as our own people. This
new world interrelationship requires understand-
ing of our motives, our desires, our ideals. It is a
fortunate fact — a fact closely related to this new
interrelationship — that the means of communi-
cation among peoples have undergone a revolu-
tionary expansion in the last quarter century.
The second reason for the new impoi'tance of
understanding is that the position of the United
States in the world today, with its gigantic re-
sources, industries, agricultural development, and
scientific achievements, makes our domestic inter-
nal activities important to the whole world. We
135.000.000 Americans who live here in the 48
States are the keystone in the arch of the world
economy. How we live, what we do, affects every-
one. A hurricane in Florida, a strike in New
York Harbor, a bumper wheat crop in Nebraska,
an increase in freight cars produced, the color of
the bread we eat — all have a direct impact on the
economy and living conditions of other peoples.
Here again the world needs information about us —
086682—46-
410
DEPARTMEI\T OF STATE BULLETIN
not only a summary of what happens but an ade-
quate background for it. We see this need re-
flected in the astonishing hunger for information
about America that exists throughout the world —
in the lines that queue up at our Government
libraries abroad and the questions that pour in
for our short-wave radio programs to answer.
Third, the nature of the American democratic
system, with its disagreements and its individual
liberty, is bewildering to a world emerging from
the throes of authoritarianism. It is easy for for-
eigners, without knowing the real situation, to
get the impression that this is a land of strife and
discord, with race set against race, class set against
class, religion set against religion, the rich oppres-
sing the poor, the poor revolting against the rich,
gangsters roaming the streets of Chicago, cowboys
shooting up the wild-west saloons of Los Angeles,
and Congress weltering in a whirl of filibusters
and cocktail parties. Yes, we are some of all that,
as Hitler knew, but that is not the United States,
as we know.
American information officers working abroad
find that our form of government, our way of liv-
ing, and our mode of thought, are widely misun-
derstood. Our men can describe hundreds of in-
stances. Some are amusing. Some are distressing.
Many are dangerous.
There was the report circulated late last year
throughout Rumania about vast criminal activi-
ties in the United States. J. Edgar Hoover was
quoted as saying that in the few months after
V-J Day six million criminals had been rounded
up. The truth was that Mr. Hoover had stated
that the FBI possesses six million sets of finger-
prints of people arrested since the FBI began col-
lecting fingei-prints 22 years ago.
There was the article in a Rome newspaper a
month after President Truman took office, linking
him with the Ku Klux Klan, and saying: "Cer-
tainly it is the most powerful latent organization
in the United States today; perhaps the one which
has a clearer practicality, a more aggressive will,
a more closely guarded secrecy than all the shades
of freemasonry."
There were the recent reports throughout
Europe that we are secretly backing the Franco
regime in Spain, throughout China that we are
trying to build Japan into a major power again,
throughout the world that American industry is
completely paralyzed.
But it is not just incidents like these that require
correction. It is the absence of fundamental
knowledge about the United States which imperils
us. Sometimes it is possible for a specific distor-
tion to be created, either accidentally or deliber-
ately, which will gain acceptance by repetition
unless it is corrected. More often, however — and
in this process Dr. Goebbels excelled — existing
stereotypes or cliches about America are deepened
and confirmed. These myths about America,
which sometimes appear to be fostered deliber-
ately for internal or external political reasons, are
based on inadequate knowledge of the facts about
American history and American institutions.
They can be dissolved only gradually by patient
effort on our part, not to persuade but to keep the
facts in full view abroad.
My associates and I have gone about designing
this program by asking ourselves the following
questions: What services are needed? Are they
being furnished without government participa-
tion? How can we legitimately assist private
agencies to do the job better? What gaps remain
to be filled?
First of all, information officers are needed
abroad in the foreign countries — Americans work-
ing under the direction of our ambassadors. Such
officers can deal directly with the people of the
nation by providing information through any inv
port ant medium, just as our ambassadors deal with
government heads and officials and as our com-
mercial attaches deal with commeixial and finan-
cial interests.
Along with these information officers, Amer-
ican libraries are needed, stocked with books,
magazines, and documents that portray American
life. These libraries are not only needed but they
are tremendously popular.
Exhibits are needed too, showing in pictures,
charts, and in other ways the life of the American
people. Like the libraries, they attract people
by the hundreds of thousands.
Documentary films and newsreels, scored in for-
eign languages and exhibited non-theatrically,
portray various aspects of American life — its edu-
cational system, its agriculture, its public-health
woi-k, its election procedures.
American press services send spot news to many
countries but in most cases in abbreviated form.
In fact, the papers abroad are so small they will
only pay for and can only use condensations. Yet
there is a pressing need for foreign editors to have
MARCH 17, 1946
411
before them the full texts of, or full excerpts of,
official United States documents, as well as
speeches by members of Congress, American edi-
torial opinion and the like. Unless the United
States Government assumes the responsibility for
providing this documentary material, the top offi-
cials, editors and broadcasters of other countries
do not get it, nor do the members of parliamentary
bodies. A few lines, taken out of context, form the
basis of their speeches and editorials.
Besides these full texts, there is much back-
ground information which is indispensable for un-
derstanding the United States. Newspaper serv-
ices don't send it, because it is not news in the usual
sense; but it is important and exciting to foreign
peoples to learn of our institutions, our schools,
our agricultural methods, our industrial system,
our churches and theaters and museums and music,
our living habits and ideals and hopes, and the
biographies of our prominent men and women.
When Mr. Truman suddenly became President,
almost nothing about his background was avail-
able abroad except that which our information
officers were able to assemble and provide. This
type of material we shall send by mail to informa-
tion officers in our embassies.
Still another vital need for the benefit of the
United States is direct short-wave radio broad-
casting of news and background material. This
is particularly important today to the many areas
which receive nothing at all or very little directly
from the United States in any other form. .Such
short-wave radio .stations could be conducted pri-
vately only at a considerable financial loss. Thus,
whether privately or publicly operated, the Gov-
ernment must participate in their cost. Congress
must shortly decide what form Government finan-
cial participation will take. Recommendations
are now being developed for consideration by Con-
gress.
In the field of broadcasting, I want to emphasize
the fact that this is the major way peoples of other
countries can be sure to get news of America from
American sources. Other news of America comes
to them screened through their own newspapers
and broadcasters.
I doubt that more than a few members of this
audience have ever heard any of our "Voice of
America" broadcasts, despite the fact that Cal-
ifoi-nia is the headquarters for all of our short-
wave broadcasting to Asia and much of our broad-
casting to Latin America.
Finally, there is a program for the exchange of
persons — students, professors, technicians, and
distinguished persons. Some 10,000 foreign stu-
dents will study in the United States this year,
the great majority of them paying their own way.
I hope that figure will be doubled by next year.
Of all the elements of the program I have out-
lined for the long pull I am most hopeful about
this one.
The foregoing roughly comprises our present
and proposed program. The proposed budget is
far smaller than the annual advertising budgets
of many American corporations. It can be viewed
as a series of relatively small activities to provide
the people of other countries with more informa-
tion about us. I prefer to view it, and I believe
the people of the United States so view it, as one
of the mainsprings of the effort on which the fate
of the world ma ywell depend, the effort to secure
the peace by creating understanding among peo-
ples.
It adds up, I think, to a favorable beginning
for a permanent, continuous two-way cultural and
informational exchange which may eventually do
more for world security than a fleet of battle-
ships— and at a tiny fraction of the cost.
Its greatest virtue in my opinion is that it is
ready to go to work in the here-and-now. Events
move too swiftly for us to be complacent when
serious misconceptions of America take root
abroad. We know that our intentions are good,
but international cause and effect are so closely
coupled that the outbreak of war at any one spot
on the globe might ripen within the hour into the
destruction of cities thousands of miles away. I
am using no empty figure of speech when I say that
the fuse of disaster is lit and burning steadily. If
areas of mass ignorance and ill-will are permitted
to remain in the world, and if the fuse reaches and
inflames them, these may act as detonators for
an explosion that could engulf us all. The hope
for the future lies in eliminating the areas of mass
ignorance and ill-will. We must combat them as
never before.
That is the objective of the program I have
partially outlined today. That is an objective
on which I hope we can all unite — the Congress,
the State Department, the press, radio and mo-
tion-picture industries, forums such as this, and
the people of the United States and peoples every-
where throughout the world.
472
DEl'ARTMENT OF STATE BULLETIN
Position of France, U. K., and U. S.
on Relations with Present Spanish Government
[Eeleaseil to the press JIarcli 4 I
The Governments of France, tlie United Kini;-
doni, and tlie United States of America have ex-
changed views with regard to the present Spanish
Government and their relations with tliat regime.
It is agreed that so long as General Franco con-
tinues in control of Spain, tiie Spanish peo]ile
cannot anticipate full and cordial association with
those nations of tlie world which have, by common
effort, brought defeat to German Nazism and
Italian Fascism, which aided the present Spanish
regime in its rise to power and aftei- which the
regime was patterned.
There is no intention of interfering in the in-
ternal affairs of vSpain. The Spanish people them-
selves must in the long run work out their own
destiny. In spite of the present regime's repressive
measures against orderly efforts of the Spanisli
people to organize and give expression to their
political aspirations, the three Governments are
hopeful that the Spanish people will not again be
subjected to the horrors and bitterness of civil
strife.
On the contrary, it is hoped tliat leading pa-
triotic and liberal-minded Spaniards may soon
find means to bring about a peaceful withdrawal of
Franco, the abolition of the Falange, and the es-
tabli>hment of an interim oi' caretaker government
under which the Spanish i)eople may have an
op23ortunity freely to determine the type of gov-
ernment they wisli to have ami to choose their
leaders. Political amnesty, return of exiled Span-
iards, freedom of assembly and political associa-
tion and provision for free public elections are
essential. An interim government which would
be and would remain dedicated to these ends
should receive the recognition and support of all
freedom-loving peoples.
Such recognition would include full diplomatic
relations and the taking of such practical meas-
ures to assist in the solution of Spain's economic
problems as may be practicable in the circum-
stances prevailing. Such measures are not now
possible. The question of the maintenance or ter-
mination by the Governments of France, the
United Kingdom, and the United States of diplo-
matic relations Mitli tlie present Spanish regime is
a matter to be decided in the light of events and
after taking into account the efforts of the Spanish
people to achieve their own freedom.
Appeal to Private Citizens to Meet Food Crisis
Telegram, sent hy tJtc President on Fehniary 26'
I am sure j'ou are familiar with the acute need
for foodstuffs in the war-torn countries of Europe
and Asia. Our national self-respect and our du-
ties as human beings demands that we do all possi-
ble to stop the spread of famine. I have directed
the agencies of Government to do everything pos-
sible to this end. But Government alone is not
enough. We cannot meet this situation without
an aggressive voluntary program on the part of
private citizens to reduce food consumption in
this country. I am asking you and a very few
other public si)irited citizens to meet in the East
Wing of the White House at three o'clock, Friday
afternoon, March first, to woi'k out means for sup-
porting such a voluntai'y program. Ex-President
Hoover has accepted my invitation and will be
there. I count on your sujiport.
Harry S. Tkuman
Tlie above statement was released to the press on Mai-.
4, the telegram on Feb. 27. The telesram was sent to
the following ;
Sheldon Clark, vice president, Sinclair Oil Corp.; .Instin
Miller, president, National Association of Broadcasters ;
Clarence Francis, chairman of board. General Foods
Corp.; George H. Gallup, Young & Rubicam ; Henry R.
Luce. Time and Life; .Tames W. Young, .T. Walter Thomp-
son Co.: William I. Myers, Cornell University; Chester
C. Davis. Washington, D. C. ; Eugene Jleyer, publisher,
Washington I'mst : Anna Lord Strauss, president. League
of Women Voters; Emily G. Dickinson, president, Fed-
eration of Women's Clubs; Eric .Tohnston, president, U.S.
Chamber of Commerce.
MARCH 17, 194,6
413
Documents Concerninoj Relations Between
the Spanish Government and the European Axis
1. Menioraiiduni by the German Ambassador in Madrid ( Stohrer I . August 8, 1940.
2. Letter from General Franco to Mussolini. August 5. 1940.
3. Letter from Mussolini to General Franco. August 25. 1940.
4. Notes of a conversation between the Fiihrer and the Spanish Minister of the
Interior (Serrano Suner) in the presence of the Reichs Foreign Minister
(Von Ribbentrop) in Berlin on September 17. 1940.
5. Letter from General Franco to Hitler. September 22. 1940.
6. Notes covering the interview between the Fiihrer and Count Ciano in the presence
of the Reichs Foreign Minister I Von Ribbentrop I and the State Secretary
Meissner in Berlin on September 28. 1940.
7. Letter from the Spanish Minister of the Interior (Serrano Sufier) to the Reichs
Foreign Minister (Von Ribbentrop). October 10. 1940 (Not printed here).
8. Notes on a conversation between the Fiihrer and the Caudillo in the Fiihrer 's
parlor car at the railroad station at Hendaye on October 23, 1940.
9. German Foreign Office Memorandum. October 31. 1940.
10. Telegram from the German Ambassador in Madrid (Stohrer) to the Foreign
Office in Berlin, December 5. 1940.
11. Telegram from the German Ambassador in Madrid (Stohrer) to the Foreign
OfiFice in Berlin. December 12. 1940.
12. Letter from Hitler to General Franco. February 6. 1941.
13. Letter from General Franco to Hitler. Februarx 26. 1941.
14. Secret Protocol between the German and Spanish Governments, February
10, 1943.
15. Notes on a conversation between General Franco and the German Ambassador
in Madrid (Dieckhoffj , December 15, 1943 (Not printed here ) .
• No. 1 ^
Strictly Secret ! Berlin, August S, 10^0
Operation : Gihrulfar
Conditions for S])ain's entry into the war
According- to a meniorandum presented in Jnne
of this year by tlie Spanish Embassy, the Spanish
Government declares itself ready, untler certain
coiulitions, to give up its position as a "non-bel-
ligerent"' state and to enter the war on the side
of Germany and Italy. The Spanish Foreign
Minister, and also the Minister of the Interior,
have n\) until tlie last few days repeatedly pointed
out tliis .Spanisli offer t(j me, so that it may be as-
sumed tluit Spain even today will keep its promise
made in June.
As conditions for entry into the war, the Span-
isli Go\-ernment cites the following:
1. Fulfilment of a set of national territorial
demands. Gibraltar, French Morocco, that part of
Released to the iire.ss Mar. 4. A separate publication of
the full texts of these docuiuents (translation). Publica-
tion 2483. European Series 8, may be had from the Divi-
sion of Iteseareli and Publication, Department of State.
414
DEPARTMENT OF STATE BULLETIN
Algeria colonized and predominantly inhabited
by Spaniards ( Oran ) , and further the enlarge-
ment of Rio de Oro and of the colonies in the Gulf
of Guinea ;
2. Making available military and other assist-
ance required for carrying on the war.
The memorandum of Admiral Canaris enclosed
here ' gives detailed information regarding the ex-
tent of military assistance apparently necessary.
Besides this military assistance, however, eco-
nomic support of Spain will also be necessary. To
this belong, above all else, the delivery of gasoline
and, at the beginning of next year, delivery of
grain for bread. According to a i-ecent utterance
of the Spanish Minister of Foreign Affairs (of
the third of this month) Spain, due to its shortage
of gasoline, can wage war without our help 11/2
months at the most. As concerns the grain for
bread, the Minister believes that Spain has suffi-
cient supplies until about March of next year. I
con.sider this latter sujjposition as too optimistic,
imless a strict rationing is carried out.
Besides this necessary assistance, however,
Spain, beginning with entry into the war, will with
respect to a number of other commodities as well
be exclusively left to the resources of German and
Italian aid.
If the operation is undertaken, it is in any case
necessary :
1. To have the preparations go forward in as
camouflaged a manner as possible, to make avail-
able in Spain supplies of gasoline and war mate-
rial (amnumition, bombs) which can be unobtru-
sively transported by railroad and truck, and, not
until the la.st moment, to bring the heavy guns col-
lected in the south of France across the border by
fast transit and into the prepared emplacements,
while the air arm is absolutely not to make its ap-
pearance imtil the operation begins in earnest.
2. The moment for initiating the preparations
and the operation itself must be adjusted to the
expected development of things in England itself,
in order to avoid a too early entry of Spain into
the war, that is to say, a period of war unendura-
ble for Spain, and thus under certain circum-
stances the beginning of a source of danger for us.
Stohrer
' Not printed.
• No. 2
Chief of State mid Getieralissimo
of the Spanish Arrrvy
Madrid, August 5, IQlfi
To His Excellency
Senor Benito Mussolini
Head of the Italian Government
Italy
Dear Duce:
Since the beginning of the present conflict, it
has been our intention to make the greatest efforts
in our preparations, in order to enter the foreign
war at a favorable opportunity in proportion to the
means at our disposal, since the lack of the most
vital provisions and the interruption of communi-
cations with Italy and Germany hindered every
operation at the moment.
The rapid and devastating victories in Flanders
altered the situation ; the defeat of France liber-
ated our frontiers, lessening the grave tension
which we along with our Moroccans have been
bearing since our Civil War.
From this moment, our horizon became brighter,
our operation became possible and could become
very effective, once the difficulties of provisioning
have been removed.
In this manner, upon the entry of your Nation
into the war, we had to take a clearer stand, one of
alertness, changing to one of non-belligerency,
which, in the field of foreign affairs, could not fail
to have great repercussions. This awakened jeal-
ousy and opposition, and unleashed an Anglo-
American offensive against our provisioning, ag-
gravated in these days by the new measures taken
by the ITnited States against our exports, and by
the English blockade measures, causing grave ten-
sion in our relations with those countries.
The consequences, which the conquest of France
is to have for the reorganization of the North
African territories have made it advisable for me,
now that the time has come, to charge my Ambas-
sador in Rome with transmitting to Your Excel-
lency the Spanish aspirations and claims tradi-
tionally maintained throughout our history in the
foreign policy of Spain, today more alive than ever
in our consciousness ; to territories, whose present
administration is a consequence of that Franco-
English policy of domination and exploitation, of
which Italy also bears so many scars. To the legit-
imate Spanish aspirations are added in this case
MARCH 17, 1946
415
the requirements for security necessitating the
elimination of a weak and thinly protected fron-
tier, and the assuring of our communications with
the Canary Island group.
In this manner, Spain in addition to the contri-
bution which she made to the establishment of the
New Order, through our years of hard struggle,
offers another in preparing herself to take her
place in the struggle against the common enemies.
In this sense, we have requested from Germany
the necessities for action, while we push forward
the preparations and make every effort to better
the provisioning situation as far as possible.
For all these reasons, you will understand the
urgency in writing you, to ask your solidarity in
these aspirations for the achievement of our se-
curity and greatness, while I at the same time as-
sure you of our unconditional support for your
expansion and your future.
With my greatest admiration for the brave Ital-
ian comrades who are fighting so gloriously, I send
you my most cordial regards.
F. Franco
• No. 3
The Chief of Government
and Duce of Fascism
Rome, August 25, 19^0
To the Head of the Spanish Government
Generalissimo Don Francisco Franco
Bahamonde
Madrid.
Dear Franco!
I thank you for the letter which you have sent
me, and in which you sketch the position of Spain
in the present stage of the war.
I should like to make it clear to you at once
that your letter has not surprised me.
Ever since the outbreak of the war I have been
constantly of the opinion that "your" Spain, the
Spain of the Falange Revolution, could not re-
main neutral until the end of the war, but at the
right moment would change to non-belligerency
and finally to intervention.
Should that not happen, Spain would alienate
herself from European history, especially the his-
tory of the future, which the two victorious Axis
powers will determine.
Furthermore, she would have no moral justifica-
tion for the solution of her African questions, and,
let me say to you, a victorious revolution must set
itself extreme goals of an international type, such
goals, therefore, as can, at a given moment, require
the complete attention and the total effort of a
people.
It is clear to me that Spain, after three years
of civil war, needed a long period of recuperation,
but events will not permit it, and your domestic
economic condition will not get worse when you
change from non-belligerency to intervention.
I should like to say to you, dear Franco, that I,
with these my practical considerations, do not wish
to hasten you in the least in the decision that you
have to make, for I am sure that in your decisions
you will proceed on the basis of the protection of
the vital interests of your people and am just as
certain that you will not let this opportunity go
by of giving Spain her African Lehcnsraum.
There is no doubt that after France Great
Britain will be defeated ; the British regime exists
only on one single element: the lie.
I certainly do not need to tell you that you, in
your aspirations, can count on the full solidai'ity
of Fascist Italy.
I beg you, dear Franco, to accept my most cor-
dial and comradely greetings.
Mussolini
• No. 4
September 17, 1940
As a preliminary Serrano Suiier delivered a
short and voluntary message of Generalissimo
Franco, in which the latter expressed to the Fiihrer
his gratitude, sympathy, and high esteem, and em-
phasized to him his loyalty of yesterday, of today,
and for always. Franco had commissioned him
to bring about a direct contact with the German
Government in this decisive time. Since he had
already informed the Reichs Foreign Minister of
the Spanish wishes, he did not at the moment
want to come back to that again, but only wished
to emphasize that the Spanish attitude toward
Germany had not changed in the least. It was not
a question of a revision of the Spanish foreign
policy, but only of a clarification of the conditions
under which Spain was ready to fight the war to-
gether with Germany. Whenever Spain's supply
of foodstuffs and war material was secure she
could immediately enter the war. With reference
to the war material, Suiier declared that the details
of the Spanish wishes had been conveyed to Ad-
416
DEPARTMENT OF STATE BULLETIN
miral Caiiuris and SufuT iiiiidf precise the wish
for placing artillery at their disposal specif_ying
that the Spaniards considered ten SS-centimeter
guns necessary for Gibraltar.
The Fiihrer declared further that it would not
be possible to provide 38-centimeter guns for
Gibraltar. Even the transporting would involve
extraordinary difficulties, and the installation
would recjuire three to four mouths. Germany
could, however, make special artillery available
for the (iibraltar undertaking. iNIoreover, it was
clear that Gernuiuy would do everything in her
power to Jielp Spain. For once Spain entered the
war, Germany woukl have every interest in her
success, since indeed a Spanish victory would be
a German one at the same time.
. . . The military cooperation of Germany in
the Spanish war would consist of:
1. inunediately exjK'lling enemy ship.s from the
Straits, and
2. uuiking available a small troop of specialists
with special weajwns by whom Gibraltar could
be quickly overwhelmed without great sacrifice of
blood. This would be a matter of a small selected
special troop of assault engineers equipped with
special armor-destroying guns — the .so-called
^'■Scharfor or "pillbox-crackers". As soon as
Gibraltar was taken, the problem of the Medi-
terranean would therewith be settled and no se-
rious danger fi'om French Morocco either could
any longer threaten.
Tn the further course of the conversation, Se-
rrano Suner came to sjjeak about Morocco, and jus-
tified the Spanish claims for it in a manner similar
to that in the conversation with the Reichs Foreign
Minister. He charactei'ized ^lorocco as Spain's
Leheiisrauiu and as her natural expansion objec-
tive. For reasons of domestic strengthening of
the regime and of external security, Spain was
raising the known territorial demand.s.
The Fiihrer agreed with him in the last jioiut
with the remark tliat many a domestic difiiculty
which Spain at the moment perhaps still had to
'Most of one iiarnsr;iiili illH;;ililc (Ui iiiicnitilm.
"Two subsequent iiiiniuraplis ;ii-i' illcfiilile in tlic mate-
rial available.
face could quickly and easily be overcome by suc-
cesses with foreign policy. This was an old his-
torical experience. Moreover, it was a matter of
two questions:
1. of the problem of the war, which essentially
was a military question, and
2. of the future configuration of the relation-
ships in Eui'ope and .Vfrica.
Here (ierinany on the one hand had economic
interests — slie wanted to buy raw materials and
sell finished manufactured goods — and on the other
hand there was the problem of security for her
African future in central Africa. For under
(certain) conditions, a great danger could threaten
her possessions there and even the whole Xew
Order as well. It was not out of the question
that England and France would try to entice
America to the Azores and in these elTorts find
support in certain inqierialistic tendencies of
America now already coniing to the fore. England
could in this way gain a foothold in the islands
stretching out in front of Africa — whereby, in
time, a very unpleasant situation would arise.
For the Continent would be <le))endent upon that
power which kejjt the outlying islands occiq)ied,
especially if it concei'ued a power with naval su-
periority. Xow the control of the seas coidd be
exercised neither by Italy, nor by Germany, nor
by Spain. Therefore, it was necessary to set up
defensive strong points on the islands in good
time. . . .^
To this, Serrano Suner remarked that Germany
had won the war and could claim the leadership
in the New Order. The defense of the European-
African area, however, must take place within
the framework of a military alliance of the three
powers and of a wi.se policy. The Fiihrer con-
tinuing explained the German interests. It was a
matter of :
First, to render the noi-thern area free from the
blockade ;
SecoiuJ. to create security toward the east for
danger always threatened from the east, and Ger-
many was filling a very useful role as the eastern
bulwark for Europe: and
Tliird, to assure Germany a great colonial area,
which was not, however, a matter of area for
settlement, of which she possessed enough on the
European Continent, but instead purely a matter
of raw material colonies.-
MARCH 17, 1946
417
After a one-lioiir duration the interview was
concluded.
Schmidt
• No. 5
Ch ief of State
Generalissimo of the
Nafio)w.J MiUtary Forces
September 22, Wlfi
My Dear Fijhrer !
I must thank you for the cordial reception which
you and your people prepared for my envoy, Min-
ister Serrano Suner, who reported to me about
your conveisation and about your esteemed ideas,
which satisfy our wishes, and with which we be-
lieve ourselves to be in complete agreement, as you
will see from the content of this letter. In spite
of complete agreement with your words "to i-ecog-
nize the Spanish claims to Morocco with the one
limitation of assuring Germany through favorable
commercial agreements a share in the raw material
of this area", there is to be sure one point where
they are inconsistent, namely in the wishes of Herr
von Ribbentrop, expressed in the form of a pro-
posal during the conversations between our Minis-
ters, for the establishment of an enclave for
German military bases by occupying both the two
harbors of the southei'n zone. These are, accord-
ing to our opinion, unnecessary in peacetime, and
superfluous in wartime, because in this case, you
can count upon not only these harbors but on all of
them that Spain possesses, since our friendship is
to be sealed firmly for the future as well. The
advantages that these bases could ofier would
neither counter-balance the difficulties which this
type of enclave always produces nor the harm
which they cause to the areas involved whose out-
let to the sea they constitute.
1. In X'egard to your trains of thought set forth
in point one concerning the political and economic
effects of the present struggle, I can only say to
you that I have agreed from the first day on with
your opinion expressed there. Only our isola-
tion and the lack of resources most indispensable
for our national existence made our operation im-
possible.
I am in agreement with you that driving the
English out of the Mediterranean Sea will im-
686682—46 3
prove the condition of our transports, although it
is self-evident that not all questions of the provi-
sioning of Spain will be solved thereby since there
are many products and raw materials which Spain
lacks, and which are not to be found in the Medi-
terranean basin.
2. I am likewise, of the opinion that the first act
in our attack nuist consist in the occupation of
Gibraltar. In tliis sense our military policy in the
Straits since 1936 has been directed by anticipat-
ing the English intentions of expanding and pro-
tecting tlieir bases.
For our part, we have been preparing the oper-
ation in secret for a long time, since the area in
which it is to take place has no suitable network of
communications. With respect to the special con-
ditions of the rock, points of resistance can with-
stand even the strongest action from the air, so
that they will have to be destroyed by good and
accurate artillery. The extraordinary impor-
tance of the project would, in my opinion, justify
a strong concentration of resources.
In any case, the strong air forces offered by you
are indispensable.
6. The possibility of a surprise attack on the
Canary Islands by the English in order to create
a naval base for themselves to protect overseas
connections has always been a worry of mine.
Within the scope of our possibilities we are about
to lay aside there supplies of food, ammunition,
and sufficient artillery-material which we are get-
ting from other less-threatened regions; we ef-
fected a partial mobilization' several months ago,
and also have sent arms for the entire archipelago.
We have transferred a group of pursuit pilots
there who would no longer have been able to get
there once the war had begun. I am of yoiu
opinion and consider the presence of dive-bombers
and destroyer planes in Las Palmas extremely
useful, for which bomb material and spare parts
must be sent in advance.
In the meantime I consider it my duty to point
out to you that in my opinion the conversations
hitherto conducted by our specialists have taken
the course of negotiations moi'e of a purely com-
mercial orientation. By having treated the set-
418
DEPARTMENT OF STATE BULLETIN
tlement of old niatters. by wanting to solve the
economic pi-oblems and the post-war exchange of
commodities, they have deviated from the main
subject, which affects both parties equally and
which will find its complete solution in the state-
ments of your letter, with which I completely
agree.
I would like to thank you. dear Fi'ihrer, once
again for the offer of solidarity. I reply with the
assurance of my unchangeable and sincere adher-
ence to you personally, to the German people and
to the cause for which you fight. I hope, in de-
fen.se of this cause, to be able to i-enew the old
bonds of comradeship between our armies.
Your
F. Fr.\nco
• No. 6
Berlin, September 28, 191fi
At the beginning the Fiihrer directed to Count
Ciano tlie question whether the possibility existed
for a meeting with the Duce at the Brenner. He
considered it right to bring about an exchange of
opinion with the Duce ctmcerning the general sit-
uation but especially also concerning the Spanish
question, before far-reaching decisions were to be
made. Also he wanted to speak with him about
the strategic situation. As concerned Spain, Ger-
nniny, on the basis of the experiences gained dur-
ing the Civil War, was clear about the fact that
one could not make progress with the Spanish
without quite concrete and detailed agreements.
It was critical for Germany and Italy successfully
to end the war in great security and in as short
a time as possible.
The Spanish proposals to Germany, somewhat
crassly exjaressed, go as far as the following:
1. Germany is to deliver for the coming year
400,000-700,000 tons of grain ;
2. Germany is to deliver all the fuel;
3. Germany is to deliver the lacking equipment
for the Army;
4. Germany is to put up artillery, airplanes,
as well as special weapons and special troops for
the conquest of Gibraltar;
.''>. Germany is to hand over all of Morocco and
besides that, Oran, and is to help her get a border
revision in the west of Rio de Oro ;
6. Spain is to promise to Germany, in return,
her friendship.
One must think it over thoroughly if one intends
to enter into such obligations and if one is to bar
other possibilities from oneself. Aside from that,
he (the Fiihrer) was afraid that the agreements
concerning Morocco would somehow leak through
and become known in France. In this case the
French would possibly even come to an agreement
with the English, if they knew that Morocco would
he lost to them in any case after the conclusion of
the war. At all events, it would be more favor-
able for Germany if the French remained in
Morocco and defended it against the English. If
the Spanish were to occupy the territory, they
jnobably would only call for German and Italian
help in the event of an English attack, and more-
over, they would let the tempo of their Civil War
prevail in their military measures. It was there-
fore necessary to talk over very calmly for a few
hours with the Duce the whole question in the light
of its usefulness and its military significance, es-
pecially since the deliveries demanded of Ger-
many would represent a great sacrifice, which
after all could not be made only in return for the
good graces of the Spanish. Thus far, at any rate,
the Spanish had not yet held out the prospect of
an equivalent. One nuist ponder the problem very
coolly and examine it in the light of its possible
effects. The case would be entirely clear if Spain
would assume distinct obligations. Considering
the uncertainty of the Spanish attitude, Germany
and Italy in this interview between the Fiihrer
and the Duce would have to take a similar stand on
the Spanish problem. The agreements with Spain
would only contain obligations for her partners
and in practice would have to be made good mili-
tarily by German}' and Italy. The consequences
could be very unpleasant. It would not be
impossible that, the commitments concerning
Morocco and Oran becoming known. North Africa
even might -fall into the hands of the English.
TJiat would nmke a conquest of this territory
necessary. This military undertaking would have
to be carried out over the veiy dubious bridge,
Sjiain, during which the possibility would defi-
nitely exist that Spain then would withdraw
again into her neutrality. At all events. England
would then have in Africa a great number of air
bases, which to be sure would not be decisive for
the war, but which could really turn out to be very
unpleasant, since air jjenetration from Germany
MARCH 17. 1946
119
iuul Italy would lie dillii-iilt (in account of tlie great
distance.
The. Fiilirei- tlieii luentioncd in this connection
tiie invitation whicli Franco had extended to liim
to meet witli liini on the Spanish-French border.
He did not yet know wliether lie ouo;ht to accept
this invitation. It would all depend on the con-
versation with the Duce. In any case he was not
convinced that Spain had "the same intensity of
will for giving as for taking."' Moreover it was
customary for allies to support one another recip-
rocally; in the case of Spain, however, the recip-
rocity would have to be missed.
When Spain was engaged in the Civil "War,
Germany had sui)p()rted Franco in a very exten-
sive measure consitlering her [Germany's] condi-
tion at the time. This support moreover had not
been without risk. It was not limited only to the
deJivery of materiel, but volunteers were also
made available and many Germans and Italians
had fallen in Spain. He did not intend to com-
pute this blood sacrifice in terms of economic
values, but instead considered it an outright gift
to Spain.
Economically Germany had given out many
hundreds of millions for Spain. He (the Fiihrer)
had taken the stand that the payment of this debt
should be left alone during the war, however that
it would have to be taken up again aftea- the victory
of Franco. Whenevei- the Germans demand the
payment of the 400 million debt incurred during
the Spanish Civil War, this is often interpreted
by the Spanish as a tactless confusing of economic
and idealistic considerations, and as a German,
one feels toward the Spanish almost like a Jew,
who wants to make business out of the holiest pos-
sessions of mankind. Therefore in all agreements
with the Spanish one must to begin with clearly
stipulate the terms, and if Germany is to furnish
grain, the question of compensation must be settled
now already.
Italy and Germany had done very much for
Spain in the year 1936. Italy just had its Abys-
sinia undertaking behind her, while Germany was
in the midst of her reai'ming. Without the help
of both the countries there, would today be no
Fi-anco.
From all these considerations a joint discussion
with the Duce was necessary before making fur-
ther decisions which could be very far-reaching.
In no case should any step which would be under-
taken with regard to Spain lead to a deterioration
of the strategic position in the Mediterranean Sea.
Count Ciauo replied that the Duce certainly
would gladly seize the opportunity for a discus-
sion with the Fiihrer. He had already frequently
spoken to him (Ciano) about it. Would the
Fiihrer like to make a suggestion concerning the
date?
Moreover the Duce had the same fears as those
the Fiihrer had just mentioned concerning the
difficulties involved in an entry of Spain into the
war. Italy also had not forgotten the experiences
of the Spanish Civil War. At that time Franco
had declared that if he received 12 transport
planes or bombers, he would have the war won in
a few days. These 12 airplanes became more than
one thousand airplanes, 6 thousand dead, and 14
billion lire. ^Vith all due sympathy for Spain,
this had upon reflection proven in fact to be right,
and now again the Duce feared that many sacri-
fices would be demanded of Italy and Germany
without return. Aside from this, it was to be
feared that following the pattern of the Spanish
Civil War, Spain's demands as now reported
woidd be increased more and more in the further
course of events. Therefore caution was in order
and a di.scussion very appropriate.
It was then decided to hold the discussion be-
tween the Fiihrer and the Duce at the Brenner in
connection with the visit of Serrano Suner in
Rome on Friday, October 4, 1940.
Schmidt
Minister
• No. 8
October 23, 1940
At the beginning the Caudillo expressed his
satisfaction about the fact that he was at the mo-
ment able to make the personal acquaintance of
the Fiihrer and to render to him Spain's thanks for
everything that Germany has done for his country
up to the present. Spain has always been allied
with the German people spiritually without any
reservation and in complete loyalty. In the same
sense, Spain has in every moment felt herself at
one with the Axis. In the Civil War the soldiers
of the three countries had fought together and a
profound unity has arisen among them. Like-
wise, Spain would, in the future, attach herself
420
DEPARTMENT OF STATE BULLETIN
closely to Genuaiiy for historically there were be-
tween Spain and Germany only forces of unity,
and none of separation.
In the present war as well, Spain would gladly
fi;2;ht at Germany's side. The difficulties which
were to be overcome therein were well known to
the Fiihrer. A war would necessitate prepara-
tions in the economic, military, and political
spheres. Within her modest possibilities, Spain
had begun these preparations ; was, of course, com-
ing up against difficulties therewith which were
being made for her by elements in America and
Europe, liostile to the Axis. Therefore, Spain
must mark time and often look kindly toward
things with which she was thoroughly not in
accord.
Franco then came to .speak of Spain's growing
prc)visioning dithculties and in this connection
mentioned that the United States and Argentina
apparently were precisely following orders from
London, for there had been cases in which the
channel through the British Embassy immediately
removed difficulties in both the above-mentioned
countries. The difficulties already existing would
be more intensified by the bad harvests. In spite
of this, Spain with a view toward her spiritual
alliance with the Axis powers, has assumed the
same attitude toward the war as Italy had in the
past autunni.
The Fiihrer replied that he was glad to see the
Caudillo personally for the first time in his life
after he had so often been with him in spirit dur-
ing the Spanish Civil War. . . . Germany had
established a front against the British Islands
fiom the North Cape to the Spanish l)order and
would no longer allow the English a landing on
the Continent. The military actions were now tak-
ing place right in English motherland. In spite
of that, England had certain hopes: Russia and
America. With Russia, Germany had treaties.
Aside from this, however, he (the Fiihrer) im-
mediately after conclusion of the French cam-
paign had undertaken a reorganization of the
German Army so that, beginning with March of
the coming year, the latter would present itself
in the following strength : of a total of 230 divi-
sions, 18G were attacking divisions. The rest con-
sisted of defense and occupation troops. Of the
186 attacking divisions, 20 were armored divi-
sions equipped with German material, while 4
additional armored brigades possessed captured
material in part. In addition to this there were 12
motorized divisions. With this Army strength
Geimany was grown ready for any eventuality.
He (the Fiihrei-) believed that England was
wrong too in placing her hope on Russia. If the
latter country were aroused at all from its inac-
tivity, it would, at the most, be active on the Ger-
man side. It was therefore a matter of misspecu-
lation on the part of England.
AVith respect to America, there was no need to
be afraid of an active attack during the winter.
There would therefore be no changfe in the present
military situation. Until America's military
power would be fully ai-med, at least 18 moutlis to
two years would pass.
There would arise, nevertheless, a considerable
danger if America and England entrenched tiiem-
selves on the islands stretching out off Africa in
the Atlantic Ocean. The danger was all tin- great-
er because it was not certain whether the French
troops .stationed in the colonies would under all
circumstances remain loyal to Petain. The great-
est threat existing at the moment was that a part
of the Colonial Empire would, with abundant nni-
terial and military resources, desert France and
go over to De Gaulle, England, or the United
States.
Naturally Germany had an interest in ending
the war in a short time if possible, since every
additional month cost money and sacrifice. In the
attempt to bring about the end of the war as soon
as possible and to render the entry of the United
States into the war more difficult, Germany had
concluded the Tripartite Pact. ' This Pact was
compelling the United States to keep its Navy in
the Pacific Ocean and to prepare herself for a
Japanese attack from that direction. In Europe
as well, Germany was attempting to expand her
base. He could confidentially report that several
other nations had announced their intention of
joining the Tripartite Pact.
To guarantee her petroleum supply, Germany
has sent pursuit squadrons and Panzer troops to
Rumania upon the request of the Runumian Gov-
ernment and in agreement with it.
The great problem that was to be solved at the
moment consisted in hindeiing the De Gaulle
movement in French Africa from further expand-
ing itself, and (hindering) the establishment, in
this way, of bases for England and America on
the African coast. A danger in this direction
was actually present. The Petain government
MARCH 17, 1946
421
was in the deplorable condition of having to liqni-
date a war for which it was not responsible, for
the consequences of which, however, its opponents
blamed it. It was now a matter of preventing De
Gaulle from receiving an increase in power from
this difficult position of the French Government,
something which moreover would lead France to
complete collapse. Finally, the attempt had to
be made to bring France herelf to a definite stand
against England. This indeed was a difficult un-
dertaking because there were still two tendencies
in France : A Fascist one I'epresented by Petain
and Laval, and an opposition one which wanted to
carry on a double-dealing game with England.
Moreover, it was particularly difficult to stir the
French to a clear stand because thej^ did not know
how the peace would look. . . .
The purpose of this confei'ence in Hendaye was
the following: If they would be successful in
effecting quite a large front against England, then
the struggle woidd be substantially easier for all
the participants and could be ended .sooner. In
setting up this front, the Spanish desires and the
French hopes were obstacles in the path. Were
England no longer partieii)ating in the war and if
there were no De Gaulle, one would not have to
think of relinquishing the demands on France.
France could then be brought to submit and, in
case she did not wish to cooperate, she could be
occupied by the military within 12 days without
any difficulty. More difficult would be the solution
of the administrative problems and the economic
problems. To occupy North Africa would of
course be difficult and would not be possible with-
out a strong military effort. The French knew
that they had to sacrifice something in the peace
treaty. They counted on losing the German colo-
nies and Alsace-Lorraine; they knew that border
rectifications would be undertaken and that Nice,
Corsica, and Tunis would be lost to them. . . .
• No. 9
Berlin, Ocfohei' 31. 1940
Reporter: Councillor of Legation Kiamaiz
Note
The Naval Warfare Command informs that
the necessity exists in connection with naval opera-
tions in the Bay of Biscay for being able to supply
German de.stroyers with fuel in out-of-the-way
bays of the Spanish coast. For this purpose, Ger-
man tankers would be sent there, from which
replenishing W(ndd take place by night in order
thus to guarantee the secrecy. The Naval War-
fare Command has in this connection pointeil to
the fact that the Spanish Government has already
shown similar obligingness in the supplying of
German U-boats.
The Naval Warfare Conmiand requests opinion
and corresponding instruction of the Spanish
Government.
Herewith submitted to
Ambassador Eitter
Kramarz
• No. 10
Madrid, Decemhei' 5, 19^0
In reply to proposal made by Embas.sy as in-
structed. Foreign Minister has now informed that
Spanish Government has agreed to the placing
in readiness of German tankers in out-of-the-way
bays of the Spanish coast for the supplying of
German destroyers with fuel. Foreign Minister
vigorously requested observing greatest caution
in carrying out mea.sure.
Stohrer
• No. 11
Strictly Secret
Madrid, December 12, 1940.
The protocol of General Vigon covering the con-
ference of Admiral Canaris with the Generalis-
simo (December 7, 1940) reads in translation:
"Admiral was received 19 : 30 o'clock in presence
of General Vigon. Admiral presents Chief of
State Fiihrer's greeting and conveys Germany's
wish to undertake attack upon Gibraltar within
a short time in connection with which German
troops are to inarch into Spain on January 10.
Reports that the Fiihrer considers this moment
the most favorable since the troops now available
for operation are directly thereafter to be used
for other undertakings and therefore could not
be reserved for indefinite time. Admiral reports
that as soon as march of troops began, economic
cooperation of Germany would at once begin.
"To this Generalissimo explains to Admiral that
it was impossible for Spain for reasons duly pre-
sented to enter into the war on the suggested date.
422
DEPARTMENT OF STATE BULLETIN
"3. Spain's provisioninp- is absolutely inade-
quate both with respect to tlie present scanty sup-
plies, as well as with respect to their distribution.
There are at tlie niomeut two problems:
"(ff) the deficiency in foodstuffs, especially
grain, which latter [dehciencyj is estimated at
one million tons.
"(?;) the inade(iuacy of transports due to lack
of railway nuiterials and because of the compul-
sory restriction in the use of motor trucks. If one
adds to it tlie discontiniunice of the sea trans-
ports as results of tlie war, the situation of many
provinces would become unbearable.
"4. Generalissimo and Govermnent are endeav-
orinir to remove these difficulties. They effected
grain-purchases in South America and Canada;
they are pushing the purchase of railway cars and
are expediting provision of locomotives; they are
effecting i:)urchases of gas generators for motor
trucks for the eventuality of a complete lack of
gasoline. But incipient exhausticm of all sup-
plies and restriction of foreign trade are prevent-
ing quick improvement.
"5. For these reasons Spain can not enter into
the war within a short time. She could also not
wage a long war without imposing unbearable
sacrifices upon the Spanish people. Aside from
that, a long war would with certainty bring with
it loss of a part of the Canai'y Islands, which could
only be supplied for six months.
"Admiral asked Generalissimo whether, under
these conditions, which are preventing fixing the
10th of January as the date, it would be possible
now already to set a different later date. Gen-
eralissimo replies that since removal of difficulties
depends not only upon the will of Spain, he too
could name no definite date, which might have to
undergo change because of the circumstances. In
any case, his attention and his effort would be di-
rected toward hastening and completing Spain's
preparations. . . .
"Generalijssimo considers it advisable that a
German economist visit Spain in order to examine
the Ihen-existing condition and to pass on to his
Government a first-hand impression. He agrees
with the Admiral that pieparatory studies and
liibors begun be contiuued jointly and in the same
discreet form hitherto carried out.
"signed Juan Vigon Divisional GeneraF'
End of the protocol
Stohrer
• No. 12
Fchniary 6, 1941
Dear Catjdillo !
If I write this letter it is done in order to
determine once again with extreme clarity the
individual phases of the development of a situa-
tion which is not only important for Germany and
Italy but could have been of decisive inqjortance
to Spain.
When we had our meeting, it was my aim to
convince you, Caudillo, of the necessity of com-
mon action of those states whose interests in the
final analysis are certainly tied up indissolubly
with each other. For centuries, Spain has been
pei'secuted by the same enemies against whom to-
day Germany and Italy are forced to fight. In
addition to the earlier inqjerial strivings inimical
to our three nations there now arose, moreover,
antitheses conditioned by world-outlook : The Jew-
ish international ilemocracy, which reigns in these
states, will not excuse any of us for having fol-
lowed a course Avhich seeks to secure the future
of our peoples in accordance with fundamental
principles determined by the people and not those
imposed by capital. As concerns the German
determination to follow this fight through to the
final consequence, I need waste no word. The
Duce thinks no differently. On the basis of this
analysis, the Japanese people as well will not in
long run get by, unless it be by a submission sac-
rificing the future of the Japanese people. I am
now convinced that Spain faces the same fate.
Caudillo, if your struggle against the elements of
destruction in Spain was successful, it was only
because of the democratic opponents forced to be
cautious by attitude of Germany and Italy. Ton
■w/U be forgiven, CaudUlo, hut never for tJiis vie-
fory! Just as little does England think of letting
you remain for a long period in North Africa
opposite Gibraltar — as soon as she is once again in
a position of power. The Spanish seizure of the
Tangier zone would in such a case — and this is
my deepest conviction, Caudillo — only be a passing
intermezzo. England, and probably America too,
will do everything to render this entry into the
Mediterranean in the future even more secure
MARCH 17, 1946
423
under their doniiiiiun tliiiii up to now. It is my
most heartfelt conviction that the battle wliich
Germany and Italy are now fighting out is thus
determining the future destiny of Spain as well.
Only in the case of our victory will the present
regime continue to exist. Should Germany and
Italy lose this war, however, then any future for a
really national and independent Spain would be
impossible.
I have thus been striving to convince you, Cau-
dillo, of the nece.ssity in the interests of your own
country and the future of the Spanish people, of
uniting yourself with those countries who for-
merly sent soldiers to support you, and who today
of necessity, are also battling not only for their
own existence, but indirectly for the national fu-
ture of Spain as well.
Now at our meeting we agreed that Spain de-
clare its readiness to sign the Three-Power Pact
and to enter the war. In setting the date, periods
in the far future were never considea-ed or even
mentioned, but instead tlie conversation always
was concerned with a very short time-limit within
whicli you, Caudillo, still believed that you coukl
carry out various economic measures favorable
for j'our country.
I personally have been skeptical from the begin-
ning about the hope of receiving verj' soon more
real economic benefits for Spain.
1. England indeed has no thought at all of really
helping Spain ! England is only endeavoring to
postpone the Spanish entry into the war, to put
it off in order in this way continually to increase
her distress and tlius to be able finally to over-
throw the Spanish Government of that time.
2. But even if England were about to think
otherwise, in an impulse toward some kind of senti-
mentality never present in British history up to
now, she could not really help Spain under any
conditions. She is absolutely not in the condition
even in transportation alone to aid another country
in a time in which she herself has already been
forced to the most rigorous retrenchments in her
standard of living. And the need for transport
space will as the months go by not decrease but
instead will get more and more serious.
In spite of the fact that I, therefore — as stated^
have been thoroughly skeptical about this from
the beginning, I nonetheless brought to bear everj'
bit of appreciation for your etforts in at least try-
ing, even before entering the war, to get shipments
of foodstuffs into Spain from countries overseas
as well.
German;/, hoii'evei\ has for her part, declared
herself ready to deliver to Spain, irrmnediately
after undertaking entranceinto the loar, food, that
is — grain — to as great an extent as possible! Fur-
thermore, Germany has declared herself prepared
to replace the lOO.OOO tons of grain which was
waiting in Portugal destined for Switzerland in
order that it might benefit Spain immediately.
This of course remains contingent upon the fimal
decision for Spa.in\^ entry into the ivar. For about
one thing, Caudillo, there must he clarity: We are
fighting a battle of life and death and cannot at
this time make any gifts. If it should later be as-
serted that Spain could not enter the war because
she received no supplies, that would not be t7'ue!
For immediately after settling the entry into the
war. a fixed date of which there has as yet been no
outward indication at all. Spain would receive
the first supplies, tluit is, 100,000 tons of grain. I
doubt whether 100,000 tons of grain coidd really
have reached Spain from abroad within the same
period of time, even if such an inclination had
existed. Tiuis, I also doubt that this is going to
liappen. The assertion, however, that — if our
grain had been delivered innnediately — the Span-
ish people could thus by propaganda iiave been
prepared for entry into the war is self-contra-
dictory for another reason.
You, yourself, Caudillo, have indeed personally
indicated to me the importance of not yet consum-
mating publicly the entrance into the Thi-ee-Power
Pact, because you feared that this would have hurt
your other efforts, for example in obtaining more
grain, indeed would perhaps have wrecked them.
How much less possible would it then have been to
carry on open propaganda for entering the war?
No, I am taking the liberty once more to confirm
that :
1. During our conversation, it was never con-
sidered that Spain's entry into the war would per-
chance not take place until autumn or the coming
winter, and that —
2. Germany was ready to furnish supplies to
the Spanish Government at the moment when the
final date for entering the war was determined.
When I had the request made to you, Caudillo,
witli tlie impression of urgency to bring relief to
the Italian ally and to set this date in the middle
424
DEPARTMENT OF STATE BVLLETIN
or the end of January, that is, to peiinit the Ger-
man march against Gibraltar to begin on or after
January 10. in order to start attacking at the end
of January, then for the first time our negotiators
were unequivocally informed that such an early
date could absolutely not be considered and this
was again motivated by economic factors. How-
ever, when I thereupon let it be known again that
Germany was indeed ready to begin at once with
deliveries of grain. Admiral Canaris received the
conclusive information that this delivery of grain
would not be decisive at all, for via railway, it
certainly could; accomplish }io practical effect.
It was now furthei- declared that since we had
already made available batteries for the Canary
Islands and moreover intended also to provide
dive-bombers for additional security — even that
was not decisive, since the Canary Islands from
the point of view of food could no longer be held
after six months.
That it is absolutely not a matter of economic
factors but rather of others is apparent from the
last statement in which it is stated that for climatic
reasons to marcli in this season could not succeed,
but on the contrary should only be considered
at the earliest in the autiunn or winter.
Under these conditions, of course, I do not un-
derstand why one should first want to declare an
event impossible on economic grounds, which is
now said to be impossible simply for climatic I'ea-
sons. Now I do not believe that the German Army
would be disturbed during its march in January
by a climate which in itself is nothing out of the
ordinary for us. In any ca.se, we solved our prob-
lems in the Norwegian campaign under varied
conditions and with severe climatic hindrances in
the form of snow and ice, not to mention the fact
that, from the participation of German soldiers
and officers in your campaign, Caudillo, the cli-
matic conditions of Spain are nothing unfamiliar
to us. I regret most profoundly, Cavidillo, this
your opinion and your stand since :
1. I feel it my duty to bring relief to my Italian
friend and ally and thus be of help to him indeed
be of help at the moment when he experienced an
unfortunate mishap. The attack on Gibralter and
the closing of the Straits would have changed the
Mediterranean situation in one stroke.
2. I am of the conviction that in war, time is one
of the most important factors. Months which one
lets slip by are often never regained again !
3. Finally, however, it is clear that, on January
10 if we had been able to cross the Spanish border
with the first formations, Gibraltar would today
be in our hands. That means: two months have
been lost, which otherwise would have helped to
decide world history.
4. I am further of the convictions that Spain's
economic condition would have improved and not
become worse because of what would in any case
have come to Spain through us and that on the
other hand the deliveries which since then actu-
ally come to Spain from abroad during this time
can only amount to a fraction compared to that
which would in any case have been delivered at
once by us.
But quite aside from this, Caudillo. I should like
now to mention the following :
The entrance of Spain into this struggle has
certainly not been conceived of as exclusively to
the benefit of the interests of Germany and Italy.
Spain herself has advanced very great territorial
claims for the fulfilment of which the Duce and I
had declared ourselves ready in every degree
which could at all be reconciled with an accepta-
ble new arrangement of the African colonial pos-
session for Europe and its countries. And I may
point out in this regard that in this struggle up to
now first Germany and then Italy, have suffered
the most prodigious blood sacrifice, and that both,
in spite of this, themselves made very modest
claims.
In anj' case, however, the moment of military
operations above all can only be proposed by the
one who therewith assumes the main burden of the
struggle and who must therefore calculate it into
the total i^rogram of a military analysis which
is after all of world-wide extent. That I myself
have no other goal in mind than the common suc-
cess is certainly understandable. Indeed in this
case, Caudillo. my urging in and of itself only
proves the strength of my consciousness of re-
sponsibility toward my ally as well. For where-
soever in the course of this war difficulties should
arise, it will be my unbending will to help out
with them ; and my decision to make good in the
final settlement whatever during one or another
stage of this war can, perhaps at first have mis-
carried. This affects Spain as well. Spain will
never get other friends than those gii^en [her^ in
the Gemimiy and Italy of today, unless it becomes
MARCH 17, 1946
425
a different Spain. This different Spain. Jiowerer
■would only he the Spain of decJinc and of pnal.
collapse. Even for this reason cdone, Canulillo, I
ielieve that we three men, the Duce, you., and /,
are hound to one another hy the most rigorous com-
pidsion of history that is possihle, and that thus
ive in this historical ancdysis ought to obey as the
supreine commandment the realization that in
such difficult times, not so much an apparently wise
caution as the hold licart, rather, can srwe nations.
Moreover, Ciuidillo, this war is decided regard-
less of Avhat eplieuioral successes the British be-
lieve they can achieve anywhere on the peri})hery.
For independently thereof, the fact remains that
the British power in Europe is broken and that
the mightiest military machine in the world stands
ready for every additional task which may be put
to it to solve. And how good and reliable this
instrument is, the future will prove.
Accept my cordial and comradely greetings.
Your
Adolf Hitler
• No. 13
To;
El Pardo, i36 February 1941
His Excellency Adolph HrrtER
Fiihrer of the German People
Dear FIthrer :
Your letter of the fitli makes me wish to send you
my rei)ly promptly, since I consider it necessary
to make certain clarifications and confirmation of
my loyalty.
I consider as you yourself do that the destiny of
histoi-y has united you with myself and with the
Duce in an indissoluble way. I have never needed
to be convinced of this and as I have told you more
than once, our Civil War since its very inception
and during its entire course is more than proof.
I also share your opinion that the fact that Spain
is situated on both shores of the Strait forces her
to the utmost enmity toward England, who aspires
to maintain control of it.
We stand today where we have always stood, in
a resolute manner and with the firmest conviction.
You must have no doubt about my absolute loy-
alty to this political concept and to the realization
of the union of our national destinies with those
of Germany and Italy. With the same loyalty,
I have made clear to you since the beginning of
080682—46 4
these negotiation'^ the conditions of our economic
situation, the only reasons why it has not been
possible up to now to determine the date of Spain's
participation.
Having in mind our own post-war difficulties,
you will recall that I have never fixed too short a
period for our entry into the war. Permit me,
Fiilu-er, to say that the time elapsed until this
moment has not been completely lost, since we have
been obtaining not certainly great enough quan-
tities of grain to permit us to build stocks, but cer-
tainly for some of the bread necessary for daily
sustenance of the jieople who otherwise would have
perished of starvation in considerable numbers.
Furthermore, it nnist be acknowledged that in
this question of the supply of foodstuffs, Germany
has not fulfilled her offers of effective support until
very recently. We are now beginning to move
in the realm of concrete facts and within this field
there is nothing I desire more than to hasten the
negotiations as much as possible. With this end
in view several days ago I sent to you information
on our needs as to foodstuff's and in general eco-
nomic and military fields. These data are open to
new examination, clarification, verification, and
discussion in order to reach quickly the solution
which interests us both equally. However, you
will understand that at a time when the Spanish
people is suffering the greatest starvation and en-
during all sorts of privations and sacrifices, it is
not certainly jiropitious for me to ask further sac-
rifices of them if my appeal is not preceded by an
alleviation of this situation, which at the same
time may permit us to carry out beforehand an
intelligent propaganda on the constant friendship
and effective support of the German people, which
will reawaken in the Spaniard the sentiments of
sincere friendship and admiration which he has
always had for your Nation.
My remarks about our climate were simply an
answer to your suggestions, and were not in any
way a pretext to postpone indefinitely that which
at the right moment it will be our duty to do.
During the recent Bordighera conference I gave
proof to the world of the nature of my resolute at-
titude; this conference also served as a call to the
Spanish people marking the direction in which lie
their national obligations and the preservation of
their existence as a free nation.
One observation I must repeat to your Excel-
lency ; the closing of the Strait of Gibraltar is not
426
DEPARTMENT OF STATE BULLETIN
only n pi'erequi.site for tlie iiuniecUate amelioration
of the situation of Italy but also perhaps for the
end of the wnr. However, in order tliat the clos-
ing of Gibraltar may liave a decisive value it is
also necessary that the Suez Canal be closed at
the same time. If this last circumstance should
not take place, we who are making the actual con-
tribution of our military eflort have the duty sin-
cerely to say that the situation of Spain in the
event of an inordinately prolonged war would then
become exti'emely difficult.
You speak of our demands and you compare
them with yours and those of Italy. I do not
believe that one could describe the Spanish de-
mands as excessive, still less, when one considers
the tremendous sacrifice of the Spanish people in
a battle which was a worthy forerunner of the
present one. Concerning this point the necessary
preciseness does not exist in our agreement as well.
The protocol of Hendaye — permit me to express
it — is in this respect extremely vague and Your
E.xcellency remembers the conditions (today so
changed) of this vagueness and lack of precise-
ness. Tiie facts in their logical development have
today left far behind the circumstances which in
tlie month of October had to be taken into con-
sideration with respect to the prevailing situation,
and the protocol then existing must at the present
be considered outmoded.
These are my answers, dear Fiihrer, to your ob-
servations. I want to dispel with them all shadow
of doubt and declare that I stand ready at your
side, euf irely and decidedly at your disposal, unitefl
in a common historical destiny, desertion from
which would mean my suicide and that of the
Cause which I have led and represent in Spain.
I need no confirmation of my faith in the triumph
of your Cause and I repeat that I shall always be
a loyal follower of it.
Believe me your sincere friend, with my cordial
greetings.
• No. 14
F. Fkanco
At the time in which the intention of the Ger-
man Government to deliver to the Spanish Army
in the shortest time possible arms, war equipment,
and war material of modern quality and in suffi-
cient quantity is to be realized, the Spanish Gov-
ernment, at the request of the Reich Government,
declares that it is determined to resist every entry
by Anglo-American forces upon tlie Iberian Pen-
insula or upon Spanish territory outside of the
Peninsula, tiiat means, therefore, in the Mediter-
lanean Sea, in the Atlantic and in Africa as well
as in the Spanish Protectorate of Morocco, and to
wartl otf STu4i an entry with all the means at its
disposal.
Both parties obligate themselves to keep this
declaration, prepared in the German language
and in the Spanish language absolutely secret.
Madkid. Fehruary 10. 101,3
foe the german government:
Von Moltke
for the spanish government:
Gomez Joedana
• No. 15
Notes on conversation between Genera? Franco
and A7nhassador Dierkhoff
Berlin, December 1-J, 1.94.3
The conference with the Spanish Chief of State,
which took place on Friday, December 3, at the
Pardo Palace, in the presence of the Foreign Min-
ister, Count Jordana, and lasted somewhat over
an hour, took the following course :
I explained to the Chief of State that I had now
been in Madrid more than seven months and luid
attempted to secure for myself a picture of the
Spanish foreign policy. I had the feeling, and
the Reich Government was under the same impres-
sion, that the foreign policy of Spain was recently
beginning to change. We observed in a number
of spheres little of a positive attitude of the Span-
ish Govei'ument with respect to Gennany and we
had especially the feeling that this change in the
Spanish attitude was to be traced to English and
American pressure. I could only point with the
greatest emphasis — and I was speaking on the
order of my Government which w'as taking a very
serious interest in these matters — to the fact that
it would be a very dangerous policy for Spain to
make concession after concession to the English
and Americans ; Spain would thereby find herself
on the down-grade, and she would become more
and more dependent upon the Anglo-Saxon pow-
ers. Only a completely firm and stable policy
which made no concessions was proper and guar-
anteed that the English and Americans would per-
MARCH IT, 1946
427
iiiMiiently refrain from further pressures; it would
be :i fatal error if the Spanish Government be-
lieved that it could eliange its course with alleg-
edlv slight concessions; the Anglo-Saxons would
seize not only the little finger but the hand and
the whole arm and would draw Spain deeper and
deeper into a relationship of dependency. I cer-
tainly could not believe that this was the intention
of the S])anish Government for the Chief of State
must certainly be clear about the fact that the
policies of the English and of the Americans — as
they always had been — were interested only in a
weak Spain, in contrast to the German policy,
whicli was always intent upon a strong national
Spain. . . .
The Chief of State listened to me seriously and
calmly and then stated the following: He would
like to emphasize at once that there was no question
of the Spanish foreign policy changing. He knew
quite ceitainly that the German policy was pur-
suing the objective of strengthening Spain, while
the English and American policies traditionally
aimed at weakening Spain. Further, he knew for
certain and was clearly conscious of the fact that
only tlie victory of Germany would make possible
the continued existence of the regime of Franco:
a victory of the Anglo-Saxons, in spite of all the
pacifying declarations which would be made to
him from time to time in this respect by the Eng-
lish and American side, would mean his own
annihilation. He therefore was hoping with all
his heart for the victory of Germany and he had
onh' one wish that this victory would come as
soon as possible.
. . . The Anglo-Saxons had presented no
ultimatum with regard to the witlidrawal of
tlie Blue Division, but he had to expect that
they sooner or later would present an ulti-
matum for the withdrawal, whereby the Spanish
Government would then luid itself in a very diffi-
cult position : for this reason he had preferred to
anticipate such an ultimatum and to request of
the Reich Government the withdrawal of the Divi-
sion. . . . As concerned the Italian ships in
Spanish harbors, the Caudillo emphasized that
the warships were interned and would remain
interned ; the crews of the warships would be trans-
ported into Spanish camps. As concerned the
merchant ships, the legal question was very un-
clear. In two cases they had not been able to avoid
letting the ships put to sea upon the request of
Ambassador Badoglio. . . .
In summarizing, the Caudillo said that he be-
lieved that this cautious policy of Spain was not
only in the interest of Spain, but also in the in-
terest of Germany. If because of a newspaper ar-
ticle or for any other of the reasons mentioned
above, a serious conflict with the Anglo-Saxon
powers should result, this would in his opinion not
at the present moment be desirable for Germany
as well; a neutral Spain which was furnishing
Germany with wolfram and other products was,
in his opinion, more valuable for Germany at the
present than a Spain which would be drawn into
the war. Of course Spain would not go beyond
the comparatively trivial concessions mentioned
above. . . .
DiECKHOFF
Postponement of Conference
at Rio de Janeiro
At a meeting of the Governing Board of the
Pan American Union on March 6, it was unani-
mously decided to consult the American republics
regarding the postponement of the proposed spe-
cial conference of American republics for the
maintenance of continental peace and solidarity,
which was originally scheduled to be held at Rio
de Janeiro between March 15 and April 15. This
resolution was proposed by the Uruguayan dele-
gate, Mateo Marques Castro. The resolution of
the Cuban delegate, Guillermo Belt, was adopted
to the effect that a new date be fixed by Brazil, the
host Government, in case the proposed postpone-
ment is accepted.
Resignation of Adlai Stevenson
[Released to the press Match 6]
The Department of State released to the press
on March 6 the text of a letter from the Secretary
of State accepting the resignation of Adlai Steven-
son as Senior Adviser to the United States Delega-
tion to the General Assembly and Acting United
States Delegate to the Preparatory Commission of
the United Nations. For texts of Mr. Stevenson's
letter and Mr. Byrnes' reply, see press release 161.
428
DEPARTMENT OF STATE BULLETIN
Promotion of Child Welfare in the American
Republics
Article by ELIZABETH SHIRLEY ENOCHS
SixcE 1941 the organization chart of the Chil-
dren's Bureau has induded a special unit
known as the Inter-American Cooperation Unit,
through which a special staff of medical, luirsing,
nutrition, and social-service consultants gives ad-
visory service, on request, to official maternal- and
child-welfare agencies of the other American re-
publics and which directs programs of study, ob-
servation, or in-service training for specialists in
these fields who are brought to the United States
from the countries to the south of us.
The association of the Children's Bureau and
agencies of our sister republics had its genesis
many years ago. At least as early as 1916 Julia
C. Lathrop, the Bureau's first chief, made efforts
to secure the representation of the United States
at the First Pan American Child Congress, organ-
ized by a group of
women physicians and
social workers in Bue-
nos Aires. Consulta-
tion service was given
to m a n y specialists
from the southern re-
publics who visited the
Bureau headquarters
in Washington. Miss
Lathrop and her suc-
cessor, Grace Abbott,
conferred with many
such specialists in
Geneva in connection
with the work of the
Social Questions Sec-
tion of the League of Nations. Correspondence
and exchange of literature developed through the
years, and attendance at the various Pan Ameri-
Mrs. Enochs, Director, Inter-American Cooperation
Unit, Children's Bureau, Department of Labor, is an
alternate member of the Interdepartmental Committee on
Scientific and Cultural Cooperation.
The Interdepartmental Committee on Scientific and Cultural
Cooperation was created, at the suggestion of the President,
early in 1938 as an instrument of the United States Govern-
ment to undertake a permanent, cooperative program for the
development of economic, cultural, and scientific relations and
to coordinate the activities of departments and agencies of the
Government, under the leadership of the Department of State,
in undertaking cooperative projects in these fields in the
Western Hemisphere. Until December 20, 1944, the Commit-
tee was known as the Interdepartmental Committee on
Cooperation With the American Republics. The activities
of the Committee are coordinated by the chairman of the
Committee, the .issistant Secretary of State in charge of public
and cultural relations, William Benton. The vice chairman
of the Committee is the Director of the Office of International
Information, and Cultural Affairs. William T. Stone, and the
Executive Director is Raymund L. Zwemer. The Executive
Director and members of the Secretariat are officers of the
Department of State in the Office of International Information
and Cultural Affairs.
can Child Congresses furnished rare opportunity
for cooperative jDlanning for the children of the
Western Hemisphere.
In 1928 the United States gave its formal ad-
herence to the American International Institute
for the Protection of Childhood, the official Pan-
American child-welfare agency which had been
established the previous year in Montevideo as the
result of formal recommendations of various Pan
American Child Congresses. Miss Katharine F.
Lenroot, present Chief of the Children's Bureau
of the Department of Labor, was appointed by
the Department of State as the official representa-
tive of this country on the International Council
of the Institute and has continued to serve in this
capacity.
In 1937 the Children's Bureau of Brazil sent an
official representative
to Washington for sev-
eral months to make
a thorough study of
the organization and
functions of the Chil-
dren's Bureau of the
United States.
In 1938 Miss Lenroot
was honored by an
invitation from the
Government of Vene-
zuela to attend the
First Venezuelan
Child Congress in Ca-
racas as its special
guest.
These are but a few examples of the type of co-
operation carried on in the past, which provided a
basis for the more formal program now directed
by the Inter-American Cooperation LTnit.
This formal program has its legal basis in two
special acts of Congress, namely : Public Law 63,
approved May 25, 1938 and amended May 3, 1939
MARCH 17, 1946
429
(76tli Cong.; 53 Stat. 652), authorizing the tem-
porary detail of especially qualified United States
employees on request to governments of the Ameri-
can republics, the Philippines, and Liberia, with
all or part of the expenses being paid by the coun-
try desiring assistance ; ^ and Public Law 355 (Tfltli
Cong.; 53 Stat. 1290), which authorizes the Presi-
dent to utilize the services of the departments,
agencies, and independent establishments of the
Government in carrying out the reciprocal under-
takings and cooperative pui'poses enunciated in
the treaties, resolutions, declarations, and recom-
mendations signed by all of the 21 American re-
publics at certain inter-American conferences.
As a result of this legislation an interdepart-
mental committee was organized to operate under
the auspices of the Department of State. This
committee is now known as the Interdepartmental
Committee on Scientific and Cultural Coopera-
tion and is composed of representatives of 26 Gov-
ernment departments and agencies. At the request
of Congress the Department of State presents the
budget estimates for the inter-American projects
of all these agencies. The funds are then allocated
to the various agencies by the Department of State
from its appropriation.
Late in 1941 a congressional committee toured
South and Central America on an official trip of
examination of Federal activities, and on their re-
turn they reported as follows to the chairman of
the Appropriations Committee of the House of
Representatives :
"The various projects that are being carried on,
at a relatively modest cost, by representatives of
numerous agencies of our Government may be
regarded, generally, as efficacious and productive
of results : For example, the Coast and Geodetic
Survey is assisting certain governments in setting
up technical and administrative machinery for
prediction of tides, and for gravity surveys. The
Children's Bureau is giving counsel in the matter
of the progress that has been made in this country
in the field of maternal and child health. . . .
Groups of students and professors are being ex-
chaiiged. . . ."
The words at a relatively Tnodest cost might
have been written with the Children's Bureau in
mind, for the first allocation of funds from the
Department of State for this Bureau totaled
$7,500. Since an official request had been received
from the National Children's Agency of Brazil for
consultation in connection with plans for the de-
velopment of services for mothers and childien
in some of the States of that country, a pediatri-
cian and a social worker were assigned to Rio de
Janeiro to carry out the first cooperative project.
This year finds the Children's Bureau again coop-
erating with its sister agency in Brazil through
the assignment of a child-welfare worker, part of
whose salary is being paid by the Brazilian Gov-
ernment under the provisions of Public Law 63.
The years since 1941 have found the staff of the
Inter-American Unit cooperating with the Min-
istry of Health in Paraguay in the development
of plans for a Department of the Child in that
Ministry and in training professional staff for
maternal- and child-health work ; with the Minis-
try of Labor, Health and Social Welfare of Co-
lombia in studying the needs of dependent and
delinquent children in that country ; with the Min-
istry of Labor, Health and Social Welfare of
Bolivia in revising the Children's Code; and with
the staff of the American International Institute
for the Protection of Childhood, in Montevideo,
in developing plans for advisory service in the
field of social welfare. The interest of the Ameri-
can republics in training a professional staff for
children's services has led to the assignment of
several members of the Unit to cooperate in estab-
lishing or strengthening schools of social work or
to cooperate in the training of nurses for mater-
nal- and child-health agencies. During the year
1944 a pediatrician, a public-health nurse, a social
worker, and a nutrition consultant were assigned
to special cooperative projects in Peru. Cooper-
ative undertakings are also under way in Ecuador,
in connection with the establishment of a school
of social work under official auspices, and in the
Dominican Republic, where great progress is be-
ing made in the development of maternal- and
child-health services.
In 1942 the Children's Bureau invited five spe-
cialists to the United States for brief periods of
study and observation. In 1945 a group of eight
fellows was invited for special training in mater-
nal and child health and child welfare. All mem-
bers of this group were on the staff' of official agen-
' For an article entitled "Detail of U.S. Personnel to
Other Governments" by Hein-y H. JleGeorge, see Bulletin
of .Tan. 20, 1046, p. T2.
430
DEPARTMENT OF STATE BULLETIN
cies in Brazil, Coloiubia, Costa Rica, Doiuinicau
Republic, Ecuador, Nicaragua, Paraguay, Pent,
and Venezuela.
The Appropriations Committee has stated its
conviction that "the cooperative purposes enun-
ciated in the treaties, resolutions, declarations,
and reconnnendations unanimously adopted at the
Buenos Aires and Lima Conferences, on which
this program is based, are of a very worthy and
lasting nature and should be continued and in
time expanded". It has likewise warned that "We
must not make a one-way road out of the pro-
gram", since "It is equally as important that we
acquaint ourselves with the life, government, tra-
ditions, culture, and thought of our Latin Ameri-
can friends as it is for us to provide facilities for
them to become acquainted Avith ours".
The State Department reports that during the
fiscal year 1944 the governments in the other
American republics contributed over a million
dollars more to this program of the various coop-
eratmg Federal agencies than did the United
States. However, the I'esults of such a program
cannot be measiu'ed alone in dollars and cents.
The members of the staff of the Inter-American
Unit who have been cooperating with the other
A-Uierican republics since 1941 have brought back
to the Bureau a wealth of information and expe-
rience which is invaluable. On the other hand,
one of the Biu'eau's Latin guests has expressed his
opinion of the Bureau's program in the following
unduly generous terms :
"In this hour of world organization, I have
more faith in the Children's Bureau and its inter-
mitiomil work for the benefit of the child in all
places, than in Dumbarton Oaks or San Francisco.
After all, the latter, in fact, depends upon a human
factor, while the Children's Bureau works on the
human factor itself, from its early nxits. from its
first hours of life."
POTTER — Coiitiniicd from pane 407.
through agreement on the rules under which state-
trading organizations shall operate, to provide a
basis on which countries employing state-trading
organizations can carry on an expanding trade
with countries in which trade is carried on mainly
by private enterprise.
For example, the rules might state that the
channeling of purchases from a source chosen for
political rather than economic reasons, whether
in connection with quotas or with state-trading
organizations, may distort or restrict the flow of
trade and would, therefore, be prohibited. Pur-
chase of goods by an import monopoly for resale
in the domestic market at a price higher than the
landed cost is equivalent to the imposition of a
tariff, and such differences would, therefore, be
subjected to the same treatment as tariffs. That
is, protective margins employed by state-trading
monopolies would be regarded as eligible for
binding or reduction, like tariffs, and an agreed
level of tariff protection might not be increased by
subsequently establishing state monopolies to re-
sell the commodity at an increased differential
above world prices.
Finally, since the Proposals are aimed at the
expansion of foreign trade, it is provided that
state-trading countries or organizations should
undertake to purchase minimum amounts of goods
annually, subject to periodic adjustment in con-
sultation with the International Trade Organiza-
tion.
Conclusion
These sections of the Proposals, dealing with
trade barriers, like other sections which are to be
discussed in other articles in this series, represent
a carefully prepared draft for consideration by a
conference of many nations. During the months
to come, other countries will be expressing their
views on these Proposals ; and the final charter or
agreement, when concluded, will represent the
combined views of all participating nations.
Nevertheless, it can be said now that if the sub-
stance of the Proposals is in the main adhered to
by the world's great trading nations, a grc'at ad-
vance toward the expansion of trade will have been
made.
Internatiojial Organizations and Conferences
Calendar of Meetings
Council of Foreign Ministers: Meeting of Deputies London
Anglo-American Committee of Inq\iir.v Jerusalem
Far Eastern Commission
West Indian Conference
North Atlantic Route Service Conference
Ninth International Conference of the International
Bureau of Education
International Monetary Fund and the International
Bank for Reconstruction and Development:
Boards of Governors
Fourth Session of the UNRRA Council
Preliminary Meeting of Conference on an Inter-
national Health Organization
The United Nations:
Security Council
Security Council — Coniniittee of Experts
Refugee Committee
The dates in the calendar are as of Mar. 10.
Washington
St. Thomas, Virgin Is-
lands (U. S.)
Dublin
Geneva
January 18 (continuing in session)
Left Cairo on March 5 (continuing in
session)
February 26 (continunig in session)
Februar.v 21 (continuing in session)
March 4 (continuing in session)
March 4 (continuing in session)
Wilmington Island, Ga. March 8 (continuing in session)
Atlantic City
March 15
Paris
March 15
New York
March 25
London
March 15
London
March 31
Activities and Developments
The Far Eastern Commission at its weekly meet-
ing oil March 6 made substantial progress toward
the establishment of committees and the allotment
to the committees of its woi-k.
The Commission agreed to the following pro-
cedure on press relations :
"The Secretary General is authorized to pre-
pare formal statements on behalf of the Com-
mission for issuance to the press. The last item
on each agenda of Commission meetings will be
'l^ress release' at which time the Connnission may
issue particular instructions to the Secretary Gen-
eral with respect to the release for that meeting.
The releases will be given the press through the
United States Department of State Press Room
which has contact with all interested agencies.
This authorization is for official releases only and
does not limit in any way the freedom of members
to make such statements to the press individually
as they in their judgment may care to make."
Henceforth, the Russian, Chinese, and French
languages will be recognized, equall}' with English,
as official languages for verbal statements at ses-
sions of the Commission and of its committees,
and for Commission documentation. This will,
of course, make necessary the services of inter-
preters and translators, and such personnel will
be supplied by the appropriate delegation to assist
the secretariat statf in its work.
The Far Eastern Commission held its third
meeting on Thursday, March 14.
The North Atlantic Route Service Conference,
which is being held under the auspices of the Provi-
431
432
DEPARTMENT OF STATE BULLETIN
sionul International Civil Aviation Organization
(PICAO), opened in Dublin on March 4. Rep-
resentatives were present from Belgium, Canada,
Denmark, France, Iceland, Ireland, the Nether-
lands, Norway, Portugal, Spain, Sweden, S^'itzer-
land, the United Kingdom, and the United States.
The Conference is working on the application in
the North Atlantic area of the "International
Standards and Recommended Practices" which
have been approved by the Interim Council of
PICAO in the fields of: (1) aviation communi-
cations, (2) rules of the air and air-traffic con-
trol, (3) landing areas and ground aids, (4) search
and rescue, and (5) meteorological protection of
international aeronautics. Specific airline oper-
ating instructions will be fornuilated in the form
of manuals to supplement PICAO standards. The
Conference will also plan for the operation of the
air-navigation facilities necessary for North At-
lantic air services.
The Dublin conference is the first of ten regional
meetings throughout the world which will activate
regional route service organizations.
Report on UNESCO. The Constitution of the
United Nations Educational, Scientific and Cul-
tural Organization was drawji up at London at the
conference held November 1-16, 1945. The Organ-
ization will come into existence when 20 nations
have accepted the Constitution. The only accept-
ance so far reported is by the United Kingdom.
There is no basis as yet for forecasting the date of
the first meeting of the general conference on
UNESCO. Progress of UNESCO at the present
time is chiefly a matter of spadework in studying
and planning.
A Preparatoi'y Commission has been estab-
lished, consisting of a representative of each na-
tion which signed the Final Act, with an Execu-
tive Committee of 15 states. Miss Ellen Wilkin-
son, Minister of Education, United Kingdom, is
Chairman of the Preparatory Commission. Dr.
Esther C. Brunauer, of the Division of Interna-
tional Organization Affairs, Department of State,
has been ai)])ointed as American representative on
the Preparatory Commission, with the personal
rank of Minister. Following the death of Gray-
son N. Kefauver, who had ]5reviously been ap-
pointed American representative, this country was
represented temporarily by Donald Stone, Assist-
ant Director of the Bureau of the Budget.
The Preparatory Commission held a short busi-
ness session on January 18. Its next meeting was
held February 11-13. The Preparatory Commis-
sion adopted a resolution expressing hope that gov-
ernments would take steps as soon as possible to
accept the Constitutioii; considered relations with
UNRRA and international organizations in-
terested in educational and cultural relief; ap-
pointed committees to study the program of
UNESCO as follows: (A) Humanities and Sci-
ences; (B) Education; (C) Mass Media ; (D) Or-
ganization of UNESCO. Problems of relation-
ships with UNO and other international bodies
were referred to the Executive Conunittee for
study. The eonunittees and tlie Executive Com-
mittee will prejjare reeonunendations for consid-
eration by the Commission.
The Preparatory Commission is served by a sec-
retariat, of which Julian Huxley (U.K.) is Execu-
tive Secretary, succeeding Sir Alfred Zinunern,
who has resigned because of illness. Howard E.
Wilson (U.S.A.) is a member of the secretariat.
A technical subcommittee is studying the needs
of liberated countries for assistance in restoring
their educational facilities. Information received
will be transmitted to governments and private or-
ganizations and individuals wishing to assist. The
subcommittee is conferring with UNRRA concern-
in,g the use of UNRRA's administrative facilities
in the transportation of supplies which may be
contributed.
A joint resolution authorizing United States
membershii) in UNESCO was introduced in the
House (H. J. Res. 305) and in the Senate (S. J.
Res. 135) and referred to the House Committee on
Foreign Affairs and the Senate Committee on For-
eign Relations (introduced: Jan. 28. 194fi).
The Department of State is studying the prob-
lems of UNESCO's organization and work pro-
gram, as also is the Interdepartmental Committee
on Scientific and Cultural Cooperation represent-
ing other government agent'ies. The Department
has sought the advice of experts in various fields
(e.g. education, natural and physical .sciences, so-
cial sciences, libraries, the humanities, the arts,
radio, press, and films) through individual and
group conferences, and pTiblic meetings and corre-
spondence. Suggestions received by the Depart-
ment are transmitted to the Preparatory Commis-
sion for consideration.
MARCH 17, 1946
433
Typical of the questions which are beinj;' studied
are:
How can UNESCO facilitate direct contacts
and visits among persons of different countries^
How can UNESCO provide guidance for the
reconstruction of educational, social, and cultural
institutions as a support for the establishment of
stable economic and social conditions?
How can UNESCO assist in the development of
qualified peisonnel for tiie furthering of interna-
tional understanding ?
How can UNESCO assist in finding and inte-
grating connnon factors in the basic outlook of the
different cultures in the world?
How can UNESCO cooperate with the mass
media (press, films, radio) of all countries in pro-
moting international understanding?
By what arrangements can individuals and
groups throughout the United States most effec-
tively cooperate with UNESCO in its program
and in achieving its basic purpose ?
How does UNESCO's function tie in with the
many national programs of overseas information
and educational, scientific, and cultural exchange?
International Monetary Fund and the International
Bank for Reconstruction and Development '
United States Delegation
United States Grwernor of llic Fund and the Bant,-
Fred M. Vinsdu, Secretary of the Treasury
Alternate
William L. Cliiytdii, Assistant Secretary of State
Executive Director of the Fund
Harry D. White, Assistant Secretary of the Treasury
Executive Director of the Banlc
Emilio G. CoUado, Deputy ou Financial Affairs to the
Assistant Secretary for Economic Affairs and Director
of the Office of Financial and Development Policy,
Department of State
Special Congressional Advisers
Robert F. Wagner, United States Senate, Chairman,
Committee on Banking and Currency
Charles W. Tobey, United States Senate, Member, Com-
mittee on Banking and Currency
Brent Spence, House of Representatives, Chairman,
Committee on Banking and Currency
Jesse P. Wolcott, House of Representatives, Member,
Committee on Banking and Currency
Members of the National Adrisorn Council
Henry A. Wallace, Secretary of Commerce
Marriner S. Eccles, Chairman, Board of Governors of
the Federal Reserve System
William McChesney Martin, Jr., Chairman, Board of
Governors, Export-Import Bank
Secretary of the Delegation
Frank Coe, Director, Division of Monetary Research,
Department of the Treasury
Technical Advisers
Edward M. Bernstein, Assistant Director, Division of
Monetary Research, Department of the Treasury
Walter Gardner, Chief, International Section, Division
of Research and Statistics, Board of Governors of the
Federal Reserve System
J. Burke Knapp, Special Assistant to the Chairman on
International Finance, Board of Governors of the
Federal Reserve System
Walter C. Louchheim, Jr., Adviser on Foreign Invest-
ments, Securities and Exchange Commission
George F. Luthringer, Chief, Division of Financial
Affairs, Department of State
Ansel F. Luxford. Assistant to the Secretary of the
Treasury
August Maffry, Economic Adviser, Export-Import Bank
James L. McCamy, Director. Office of World Trade
Policy, Office of International Trade Operations, De-
partment of Commerce
Herbert W. Parisius, Deputy Director, Office of World
Trade Policy, Office of International Trade Opera-
tions, Department of Commerce
Arthur Paul, Assistant to the Secretary of Commerce
John W. Pehle, Assistant to the Secretary of the Treas-
ury
John Parke Young, Adviser. Office of Financial and
Development Polic.v and Division of Investment and
Economic Development, Department of State
Press Relations Officers
J. H. Randolph Feltus, Assistant to the Secretary of the
Treasury
Charles P. Shaeffer, Director of Public Relations, De-
partment of the Treasury
International Secretariat
In accordance with the terms of the Bretton
Woods Agreements, this Government will be host
to the meeting, which entails responsibility for
organization. The President has accordingly re-
quested the Honorable Fred M. Vinson, Secretary
of the Treasury and United States Governor of
the Fund and the Bank, to serve as temporary
chairman of the inaugural meetine;.
' Released to the press Mar. 4. For a list of the states
members of the Fund and of the Bank, as well as a list
of the countries invited to have observers In attendance,
see the Department of State BuLLEmN of Feb. 10, 1946,
p. 219.
434
DEPARTMENT OF STATE BULLETIN
Presiclentiiil ;i]){)r()val has also been giveai to the
designation of tlie following officers of the Inter-
national Secretariat of the meeting:
Sccretary-Geiteral
Warren Kelchner, Chief, tn vision of Intenuitiuiial Con-
ferences, Depiutmeiit of State
Temporary Secretary of the Fund
Roman L. Home. Assistant to the Assistant Secretary
of the Treasury
Triiiynrary Secretary of the Bank
Joliii S. Hooker, Deputy Director of the Office of Finan-
cial and Development Policy, Department of State
Secretaries and Assistant Secretaries of Committees
Elting Arnold, Department of the Treasury
Alice Bourneuf, Federal Reserve Board
R. B. Brenner. Department of the Treasury
David Delman. United States Senate Banking and Cur-
rency Committee
J. E. DuHois. Jr.. Department of the Treasury
John Ferguson. Department of State
Wilbur R. Lester, Department of the Treasury
Raymond F. Mikesell, Department of the Treasury
Norman T. Ness, Export-Import Bank
Phillip T. Thorseu. Department of the Treasury
Max J. Wassernian. Department of Commerce
Gordon Williams. r)epartment of State
Walter H. Windsor. Department of the Treasury
Cliief Press Rclatiiins Ofpccr
Lincoln White, Executive Assistant, Otiice of the Spe-
cial A.ssistant to the Secretary of State
Press Relations Officer
Harold R. Beckley, Superintendent. United States
Senate Press Gallery
Protocol Officer
H. Charles Spruks. Division of Protocol. Department of
State
Liaison with Technical Officers
Ivan White, Foreign Service (tfiicer. Department of
State
Special Assistant to tlie Secretary-General
W. Cl.vde Dnnn, Division of Middle Eastern Affairs,
Department of State
Richard S. Wheeler. Division of International Confer-
ences, Department of State
Administrative Officer
Millard L. Kenestrick. I>ivision of International Con-
ferences, Department of State
Assistant Administrative Officer
Harold G. Kissick, Division of International Con-
ferences. Department of State
Liaison Officer for Coast Guard Relations
Commander Carl A. Bowman, United States Coast
Guard
Record of the Week
U. S. Position on Soviet Troops in Iran
NOTE SENT TO SOVIET GOVERNMENT
[Released to the press Mareli 7]
Text of note delivered hy the American Charge
d'Affeiii'es, George F. Kennan^ upon the iiistriietion
of /Secretary of State James F. Brynes, to the
Soviet Government at Moscow, March 6, 1946
I have the honor to inform your Excellency that
I have been instructed by my Government to deliver
to the Government of the Soviet Union tlie fol-
lowing message:
"The Government of the United States has been
informed that the Government of the Soviet Union
has decided to retain Soviet troops in Iran after
March 2, 194C, that this decision was taken without
the consent of the Iranian Government, and that
Soviet troops continue to remain on Iranian terri-
tory in spite of the protests of the Iranian Govern-
ment.
"It will be recalled that in reply to a note ad-
dressed on November 24, 1945 by the Government
of the United States to the Government of the
Soviet Union suggesting the immediate with-
drawal of all foreign troops from Iran, the Soviet
Government on November 29 stated that the period
of the stationing of Soviet troops in Iran was gov-
erned by the Anglo-Soviet-Iranian Treaty of Jan-
uary 29, 1942.1 xijg Government of the United
States understood from this statement that it was
the intention of the Government of the Soviet
Union that all Soviet troops would be withdrawn
from Iran not later than March 2, 194fi, six months
after the date of the signing of the instrument of
surrender with Japan on September 2, 1945. This
understanding was based upon Article Five of the
Tripartite Treaty referred to above which states :
" 'The forces of the Allied Powers shall be with-
drawn from Iranian territory not later than six
months after all liostilities between the Allied
Powers and Germany and her associates have been
suspended by the conclusion of an armistice or
armistices, or on the conclusion of peace between
them, whichever date is the earlier.'
"So far as the Government of the United States
is aware, this commitment was not questioned at
the recent meeting of the Security Council in Lon-
don which agreed that the Soviet Union and Iran
should seek a solution of their differences by direct
negotiation.
"The decision of the Soviet Government to re-
tain Soviet troops in Iran beyond the period stipu-
lated by the Tripartite Treaty has created a situa-
tion with regard to which the Government of the
United States, as a member of the United Nations
and as a party to the Declaration Regarding Iran
dated December 1, 1943, can not remain indiffer-
ent. That Declaration annoimced to the world
that the Governments of the United States, the
Union of Soviet Socialist Republics and the
United Kingdom were 'at one with the Govern-
ment of Iran in their desire for the maintenance of
the independence, sovereignty and territorial in-
tegrity of Iran'. In the opinion of the Govern-
ment of the United States, the maintenance of
troops in Iranian territory by any one of the three
signatories to that Declaration, without the con-
sent and against the wishes of the Government of
Iran, is contrary to the assurances contained in
that Declaration. Furthermore it was generally
accepted during the various discussions which
took place at the meeting of the Security Council
in London that the retention by a member of the
" Bulletin of Dec. 9, 194.5, p. 934 ; for U. S. note to Soviet
Government, see Bulletin of Dec. 2, 1945, p. 884.
435
436
DEPARTMENT OF STATE BULLETIN
United Nations of its troops in the territory of a
country which is also a member of the United
Nations, without the consent of the Government
of that country, is not in accordance with the
principles of the United Nations and that the with-
drawal of such troops should not be made contin-
gent upon other issues.
"The Government of the United States, in the
spirit of the friendly association which developed
between the United States and the Soviet Union
in the successful effort against the common enemy
and as a fellow member of the United Nations, ex-
presses the earnest hope that the Government of
the Soviet Union will do its part, by withdrawing
immediately all Soviet forces from the territory
of Iran, to promote the international confidence
which is necessary for peaceful progress among
the peoples of all nations.
"The Government of the United States trusts
that the Government of the Soviet Union, no less
than itself, appreciates the heavy responsibility
resting upon the great powers under the Charter
to observe their obligations and to respect the
sovereign rights of other states.
"The Government of the United States requests
that it be promptly advised of the decision of the
Govei'nment of the Soviet Union which it hopes
will be in accord with the views herein expressed."
Financial Agreement With the United Kingdom
RESOLUTION FROM ADVISORY BOARD OF OFFICE OF WAR MOBILIZATION AND
RECONVERSION
[Released to the press by the White House March 4]
Text of resolution received by the President from
th-e. Advisory Board of the Office of War Mohiliza-
tion and Reconversion
Resolved: That the Advisory Board of the Office
of War Mobilization and Reconversion endorses
the financial agreement with Britain, which calls
for removal of barriers to trade between this coun-
try and the British Empire. The Advisory Board
sees in the British agreement a major opportu-
nity, through expanded world trade, to stimulate
the world-wide production, jobs and markets
which are essential to stable and prospei'ous post-
war economic conditions and, thus, to world peace
itself.
This resolution was signed by the following
membei'S :
Public — O. Max Gardner, Undersecretary of
Treasury, Ghainnan
Chester C. Davis, President, Federal Eeserve
Bank of St. Louis
Mrs. Anna M. Rosenberg, Chairman, New York
City Veterans Service Committee
Agriculture — Edward A. O'Neal, President,
American Farm Bureau Federation
James G. Patton, President, National Farmers
Union
Industry — Nathaniel Dyke, Jr., Assistant to the
Chairman, Federal Deposit Insurance Cor-
poration
Eric A. Johnston, President, United States
Chamber of Commerce, President, Motion
Picture Association of America
George H. Mead, President, the Mead Corpora-
tion (Paper), Dayton, Ohio
Labor — T. C. Cashen, President. International
Railway Switchmen's Union of North
America
William Green, President, American Federa-
tion of Labor
Philip Murray, President, C. I. O.
Statement made by the President upon receiving
the resolution^ which was transmitted by John W.
Snyder, Director of War Mobilization and Recon-
version
I am delighted to know that this policy has the
approval of the Board.
Before the war, the British people were the
largest single foreign customer for American
goods. They bought our surplus cotton and wheat,
tobacco and fruits, and our manufactured prod-
ucts in huge quantities.
During the war, Britain because of lack of
MARCH 17, 1946
437
dollars was forced to restrict trade mainly to the
Empire and to conntries tied to the pound sterling.
Now tliat the war is over. Me want to do business
with liritain and Britain wants to do business
with us. With this loan Britain will be able and
has agreed to abolish barriers that block our
mutiuil trade.
This agreement is good business — good business
for tlie industries of America, good business for
our farmers, and good business for our workers.
Foreign trade is vitally necessary to an expand-
ing American economy. Our system cannot sur-
vive ill a contracting economy. The British loan
agreement is an important step in rebuilding for-
eign trade and in creating jobs in America.
The alternative to the British loan is trade war-
fare between nations. Peace can be built only on
a foundation of w<irld economic cooperation and
stability. The British loan is a cornerstone in the
world's structure of jieace.
U. S.-U. K. Financial Agreement
STATEMENT BY ASSISTANT SECRETARY CLAYTON
Mr. Ch.mrm.vx : I welcome this opportunity to
appear before your Committee to diseuss the
financial agreement with Great Britain in terms
of the trade and commerce of the United States as
well as our long-range commercial policy and in
terms of its implications for world peace.
To understand the purpose of the agreement,
it is necessary to review briefly some facts of re-
cent economic history.
I start with 1937, because of the in.^O's it was
perhaps the most nearly normal and prosperous
year.
In 1!».")T, then, the people of the United King-
dom purchased from the rest of the world and
imported into Great Britain, in round figures, five
billion dollars worth of goods.
Two billions of the five was food: grain and
flour, meat, dairy products, fruit and vegetables,
coffee, tea, and cocoa, and so on. These imports
were a very important part of the food supply of
the British people. Without them Great Britain
could not have fed her existing population.
One and one-half billions of the five was raw
materials: ores, timber, cotton, wool, oil seeds,
petroleum, hides and skins, and so on. These im-
jiorts were the major raw materials of British
industry except for coal, limestone, and clays,
which of coui'se are produced in Britain. Without
these imports. Great Britain could not have
furnished either employment for her existing
population or manufactured goods for their
consumption.
The balance of the imports, classed as manufac-
tured goods, included nianv items which for Brit-
ain were the materials of industry and transport:
namely, metals, gasoline and lubricating oils, and
paper. It also included some machinery and some
final manufactured products for consumption.
In summary, it is clear that the five billion dol-
lars worth of impoits meant the difference between
life and death or emigration for a large part of
the British people.
British requirements for foreign raw materials
now are at least as great as they were in 1937. For
a time they will certainly be greater, because both
industrial machinery and consumers' stocks of all
kinds have been drawn <lo\vn. worn out, and dam-
aged by the bombing. Absolute requirements for
imported food are down somewhat, because do-
mestic food production has increased. Housing
requirements are enormous, and the timber for
them has to come mainly from overseas, largely
from Norway, Sweden, and Canada. And the re-
construction of war damage to industry and trans-
port will require some e(iui})ment and machinery
from overseas, especially from the United States.
The total British need for foreign goods over the
next few years is certaiidy larger than the actual
imports of 1937.
To pay for these imports, over the next few
years, the British people have much smaller for-
eign income and resources than tliey had before the
war. All the sources of their foreign income are
reduced, and substantially reduced, and so are the
foreign balances on which they used to draw from
time to time to make up small deficiencies in in-
Made before the Senate Comnilttee on Banking and Cur-
I'eiiey on Mar. 6 mid released tn tlie jii-ess on the same date.
438
DEPARTMENT OF STATE BULLETIN
come. Unless something drastic is done the peo-
ple of Great Britain will not have for several
years anything like the fiuids to bny the foreign
goods they need, or what they bought before the
war.
It is important that we understand quite clearly
what this means.
First, what does it mean in terms of direct trade,
to the British themselves, to the world at large, and
to us?
What it means to the British is perhaps of
greater importance to them than to us, but I think
we cannot be wholly indifferent to it either. It
means tighter belts than even during the war years,
not only during the present and temporary period
of world-wide shortage of physical goods, but after
that until British exports are restored to the
point where they will pay for needed imports.
To the world at large an enforced sharp reduc-
tion of British purchases abroad would mean that
the world's largest customer for food and raw ma-
terials had sharply cut his orders.
Perhaps in the present state of general shortage
of goods that does not sound serious. But what is
it the world is short of? Not raw cotton nor raw
wool nor tobacco. These are in normal times three
of the large British imports. They are all in sur-
plus now.
I think all producers of raw materials and of
farm products remember what became of short-
ages a few years after World War I. At a certain
point shortages became surpluses, and prices de-
clined suddenly and sharply. We are going to try
hard to avoid that this time. To force a sharp
reduction in the orders of the world's best cus-
tomer for raw materials is not a good way to begin.
It is useful to know the magnitudes that we
are dealing with. In 1937 the United Kingdom
bought from the United States 500 million dol-
lars worth of goods. That included 16 million dol-
lars of pork products and lard, 5i/^ millions of
canned salmon, 7 millions of wheat and 5 of barley,
18 millions of apples, raisins, peaches, and pears,
87 millions of tobacco, 92 millions of cotton, 37
millions of petroleum products, 14 millions of re-
fined copper, 19 millions of metal working machin-
ery, 16 millions of automobiles and tractors, and
many other items.
It would not be pleasant to contemplate a re-
duction by three-fifths in those orders, say in the
year 1948. But if Britain were able to buy from
us only as much as we bought in the same year
from Britain, that is what we would be faced with.
In 1937, which for us was quite a prosperous year,
we bought from the United Kingdom 200 million
dollars worth of goods in all, against the 500 mil-
lions that they bought from us.
I have talked about the direct effects on trade of
the cut in British orders that will be forced by the
existing temporary shortage of British foreign in-
come, unless emergency credit is extended. Even
more important is the increase of trade restric-
tions and discriminations that would accompany
the cut.
You will remember that the fundamental trou-
ble is the general shortage of foreign money owned
and earned by people in Great Britain. But we
must also bear in mind that from the point of view
of Britain there are many kinds of foreign money,
and that some of them are much easier than others
for British owners to acquire.
The people of the Argentine, for instance, are
likely in the normal course to buy large quantities
of British textiles and machinery and all kinds of
manufactured goods. That would make Argen-
tine pesos plentiful to Britain, although she might
have no dollars.
Under the circumstances, Britain would be
forced to buy in the country where she could pay,
regardless of cost.
That is what American producers looking for
foreign markets are up against today throughout
the sterling area. The sterling area consists of all
the British countries except Canada and New-
foundland, and includes also Egypt, Iceland, and
Iraq. The countries in it carry on about one
third of all the foreign trade there is. British
pounds and other sterling-area currencies are
"easy'' in each country in the area, because trade
or credit has made such currencies available. But
dollars are "hard" throughout the area, because
demands are greater than supplies and credit has
not been extended. By government decree, there-
fore, throughout the sterling area, dollars are
rationed, and people making purchases abroad
nuist buy for sterling if they can. American sup-
pliers can make sales only if their customers can
get official licenses, and licenses will not be granted
if the same goods can be bought without the use of
dollars, even at a higher price.
The shortage of foreign money in great Britain
means therefore, to put it bluntly, not only reduc-
MARCH IT, 1946
439
tions in British purchases abroad but disciimina-
tory cuts, by government decree, against those
countries whose currencies are scarcest in Great
Britain, and in favor of countries whose currencies
are easier to come by. This is not because the
British Government wishes to discriminate against
Americans. It is simply because she is compelled
to buy from countries which will take British goods
in payment.
It is important to point out that the discrimi-
nation against us that results is not only in the
British market but in the markets of third
countries.
Let us say that some third country, India or the
Argentine, for instance, has extended a credit to
Great Britain to finance the sale of its products in
the British market. Let us say that the trade in
the opposite direction turns out not to be large
enough to liquidate the credit promptly. It can
be paid in the long run only in goods and services.
To make surer of collection, therefore, the Indian
or Argentine Government, in its own financial
interest, will require its people to "buy British"
all they can. and will enforce it by a system of
exchange control or by the licensing of imports.
American exporters and ship-owners will soon find,
in all these markets, that their customers are not
at liberty to deal with them in any case where the
same thing can be bought for sterling.
This is again what American exporters are up
against today throughout the sterling area. It
will continue and get worse as long as shortages
of dollar income and resources in Great Britain
force that policy on the British Government.
During the war we recognized that the sterling-
area controls insured, in principle, the application
of all the dollar resources of the area to the most
essential wartime uses. They contributed to the
prosecution of the war, and they reduced the total
burden on lend-lease. But now the war is over,
and we are trying to set up the rules under which
peacetime trade around the world is to be oper-
ated. The most important single rule, from the
point of view both of commerce and of interna-
tional good-will, is the rule of non-discrimination.
We cannot, I think, contemplate in peacetime the
perpetuation of a system that discriminates against
the trade of the United States in the richest mar-
kets of the world.
Charles Evans Hughes said, when he was Sec-
retary of State, in a letter to Senator Borah : "We
must have either a system of discrimination or a
method of securing immunity from discrimina-
tion."
That is exactly what we are up against today,
and we have the same choice that Mr. Hughes
spoke of 20 years ago, only more acutely. A power-
ful system of discrimination against American
trade exists. It is not liked by the people who
operate it, because it prevents them from buying
in the best markets. But their hands are largely
tied by their financial weakness, and unless some-
thing is done to alleviate that situation the system
will continue. We can either accept it, or fight it,
or make it possible to stop it.
I don't think we can accept the perpetuation of
this system lying down. Our goods are being
excluded from markets once open to them and
which should be open to them again. Our real
choice is to put up a fight or to work out an agree-
ment to stop the system.
If we decided on a fight we could start out to
set up our own dollar area, with its own system
of preferences, bilateral deals, and exchange dis-
criminations. We and the sterling area could start
putting competing pressure on countries to adhere
to our respective blocs. Since we both trade in
every part of the world we should be in contro-
versy everywhere. I don't know how much the
United States would spend and lose in such a fight,
but it would clearly be far more than the invest-
ment we now propose to make in order to avoid it.
Please do not misunderstand me. The United
States is commercially the most powerful country
in the world, and if an economic dogfight between
governments is what we are in for I am sure we can
do more damage than we suffer. The point is that
that kind of a dogfight makes no economic sense
whatever. Neither we nor the British can get pros-
perous by unfair competition against each other
for shares of a wholly inadequate world trade.
We are after all the two largest single factors in
the trade of most third countries, as well as of
each other, and if we are in constant controversy
with each other no part of world trade is going to
expand. The only way we can get forward, either
of us, is to work together with each other and with
all like-minded countries to expand trade and
prosperity all aroimd the circle. That is what
the financial agreement that is now before you is
intended to make possible.
440
DEPARTMENT OF STATE BILLETIN
1 will Jiut review again the technical features of
the financial agreement which Judge Vinson has
already described. What it conies down to. com-
mercially, is that by the credit we make it financi-
all}' possible for Great Britain to remove the dis-
criminations which now operate against American
trade in all the markets of the sterling area, and
the Britisli Government agrees to remove them.
In addition, if the credit goes through, we are as-
sured of British participation in the International
Monetary Fund and the International Bank foi'
Reconstruction and Development, and of Britisli
support for the proposed International Trade Or-
ganization. The approval of the financial agree-
ment by the Congress will mean that the two larg-
est trading countries have decided not to get into
an economic war, but to work together on a plat-
form which is beneficial to tiieni both, and to every
other country in the world. Approval of the agree-
ment by the Congress will lay the basis for the only
kind of prosperity that has a chance of lasting —
prosperity based on real international cooperation.
Tliese are the economic stakes involved in the
decision on the financial agreement. The political
stakes are even more important.
The most urgent single political objective of tlie
United States is world peace. That depends on the
success of the United Nations.
The Security Council of the United Nations con-
sists of eleven members. Five of these are perma-
nent members by virtue of the Charter. Two of
those five are the United States and Great Britain.
The United Nations cannot succeed unless the
members of the Security Council adjust their va-
rious differences and work together for the com-
mon interest. That applies to all the members,
and that includes Great Britain and ourselves.
It is a fair estimate that two thirds to three quarters
of the trade of the post-war world will be done in
pounds and dollars. Now. if Britain and the
United States are so foolish as to get into the kind
of economic dogfight that I spoke of a few minutes
ago. how much chance will there be that we can
long continue as partners in the great enterprise of
preserving world peace?
Please do not misunderstand me. Neither this
agreement nor any other single step that we can
take is a guaranty of peace. But every major
thing we do or fail to do in international affairs
has some bearing on the cliances of the United
Nations for success. What I say is that the effect
of this decision on those chances is obvious and is
substantial.
U. S.- French Positions on Establishment of Central German
Agencies
[Released to tlie press March 8]
Mc-'<s<iffe uf the Secretary of State sent on Fehru-
iiiji /, lOI^G to Georges Bidault, Minister of
Fiirdgn Affairs of France ^
I should be most grateful if you could see youi'
way clear to review the French attitude on the
establishment of central German agencies. In
doing this, I should like to ask you to take into
account tlie following considerations :
I believe, as a result of our close cooperation in
the European Advisory Commission in planning
tlie occupation of Germany and in our day-to-day
lelationships with the French representatives f)n
the Control Council, that the basic ideas of the
French and American Governments on the politi-
' This message was (■(iiiiiniiiiiciiliMl tii
Feb. 6.
Mr. BidMiUt
cal principles wWch govern the treatment of Ger-
many in the occupation period are not far apart.
I am certain that our reiterated intention to de-
stroy German militari.siii and Nazism and our joint
measures to accomjilish the complete disarmament
of Germany have received the complete ajiproval
of tlie French Government. I know that we are
in accord on the political premise that the admin-
istration of affairs in Germany should be directed
toward a decentralization of German govern-
mental structure and the development of local ad-
ministrations based upon democratic principles.
Furthermore, I am sure you will agree that the
time has not yet come to reestablish any central
German Government and that the occupation of
Germany under the prevailing agreements is ex-
pected to continue for an indefinite period. I
should like you to know that I fully appreciate the
MARCH 17. ]Ub
441
niitural desire of your Government to prevent the
resurgenee of a militant and a<j;<iressive Germany.
Lyin<i' next to Germany as France does, I can
readily undei'stand the desire of the French Gov-
ernment to effect territorial changes which, in its
o])inion. will form the basis of security against
Germany. Therefore. I can understand the rea-
sons which have prompted the French Govern-
ment, acting under the unanimity rule of the
Control Council to prevent the establishment of
central German administrative departments.
On the other hand, the central German agencies
proposed will be oj)erating under the direction of
the Control Council, in which the French Gov-
ernment has full participation. The Control
Council is directed so to manage affairs in Ger-
many that the former highly centralized govern-
mental structure of the German Reich will be
abolished and replaced by a much looser structure.
It does not seem to me that this theory is incom-
patible with the establishment of certain central
administrative departments which will enable the
Control Council to equalize and make uniform the
treatment of Germany in many important aspects.
Even under a loosely-federated form of Govern-
ment it would seem to be indispensable eventually
to permit the establishment of central agencies in
the fields of finance, transport, communications,
foieign trade and the control of German industry.
Otherwise, we may have a situation in which it
will become impossible to administer Germany as
an economic unit and to effect that reduction of
German war potential which we both agree is
essential.
I should also like you to know that in my opin-
ion the estalilishment of certain central German
agencies does not prejudice the eventual considera-
tion of Germany's western frontier. This problem
is an enormously complicated one which will no
doubt be the subject of extended exchanges of views
between the Allies. AVe have not as yet begun our
joint labors on the conclusion of a peace treaty with
Germany and I think you will agree the time has
not yet come to do so. The greatest security which
France and all of the United Nations have againsf
Germany is indeed a continued occupation of the
German Reich. We all ho[)e that this occupation
will result in a Germany which is incapable for
an indefinite future of waging war, but the prob-
lems of this occupation are enormously complex
and it is indispensable that the four occupying
fiowers should cullaborate in executing the [tur-
poses of the occupation. The American. British
and Soviet Governments have all agreed that the
establishment of central German agencies is re-
quired for the purposes of this occupation. They
have further agreed that such agencies M'ill be
luider the direction of the Control Council.
Last, but not least, it seems to me that we must
view the functioning of the Control Council as
a test of the ability of the four Allies represented
thereon to work together in the jiost-war world.
Failure of the Council would mean failure of Al-
lied cooperation and would be so regarded in the
world at large.
I. therefore, express the earnest hope that the
French Government will reconsider its attitude in
this matter and will, by so doing, facilitate the
development of the common Allied policy in
Germany.
Rvphj hij the FrencJi Minister of Foreign Affairs
received on Marrh 2, 1946 hi/ the Secretary of
State
By a communication dated February 6, you were
good enough to inform me of 3'our desire to have
me re-examine the position taken by the French
Government on the subject of the creation of cen-
tral ( rerman agencies.
You reviewed for me on this occasion the prin-
ciples on which American policy toward Germany
is founded : The destruction of German militarism
and Nazism, the complete disarmament of Ger-
many, the greatest possible decentralization of
the German structure, and the development of local
administrations with a democratic character. You
indicated that the time has not come to re-estab-
lish a central German government and that the
occui^ation of Germany under the prevailing ar-
rangements is expected to continue for an indefi-
nite period. Finally j-ou expressed your full com-
prehension of the French Government's desire to
assure against further German aggressions and for
this reason to effect territorial changes in ncigh-
boi-ing frontier regions.
I am hapi\v to verify the agreement of our gov-
ernments on these principles and to take note of
this understanding. After all. I have the feeling
that, since in the last analysis it is a question of
strengthening democracy and guaranteeing secu-
rity, which are matters of concern common to all
the United Nations, a fundamental agreement has
442
DEPARTMENT OF STATE BULLETIN
never ceased to exist between our governments.
The divergence of views appears only over the
practical measures to be taken to assure the effec-
tive application of our common ideas.
The French Government for its part, if it con-
siders, in agreement with the American Govern-
ment, tlie prolonged occupation of Germany as the
best guarantee of security, nonetheless cannot ig-
nore the fact that this occupation will eventually
end. Even at this time the French Government is
preoccupied with the measures which must be
taken to avoid the possibility that Germany shall
become again a menace to peace when the occupa-
tion shall have ended. It seems to it, given the
human potential of tiiis country, that the German
menace will exist as long as a German Govern-
ment, perhaps favored by a relaxation of interna-
tional vigilance such as occuri-ed between the Two
World Wars, has at its disposal the necessary in-
dustrial resources to reconstitute its military
power. The experience of the last twenty-five
years has made it clear that territoi'ial clauses are
the last that revisionist states question. Those
clauses also may be easily implemented by an effec-
tive and precise international guarantee. For
these reasons, the French Government proposes
that the separation of certain regions from Ger-
man sovereignty characterize (Tnarqme) the ir-
I'evocable nature of the limitations imposed on
German potentialities and render it, in fact,
irrevocable.
These preoccupations are known to your govern-
ment. You tell me you understand them. You
nonetheless judge that they present an enormously
complicated problem; that — for the present — the
occupation assures us security; that this occupa-
tion in itself presents very complex questions; that
the treatment of these questions (in this instance
the creation of central German agencies) does not
prejudice the terms of a future territorial settle-
ment and therefore should be not delayed by a
study of these terms.
Whatever be the importance, complexity and
urgency of the questions posed by the occupation
and administration of Germany, the French Gov-
ernment does not think that the occupation pow-
ers should, to facilitate their immediate task, com-
promise the guarantees of the future. It is not a
simple concern for logic which leads the govern-
ment to desire that before re-establishing German
administrative services, the four powers will reach
agreement on the extent of future German terri-
tory. In fact, to the French Government it would
appear that even if the frontiers remain theoreti-
cally open to future settlement, the establishment
of central German services having their own
right of decision, having ramifications in all the
territory actually under control and exercising di-
rect action everywhere by their agents will be gen-
erally considered, particularly by the German
population, as prejudicing future settlements.
Furthermore, the manner in which this same prob-
lem has been treated in the past will i-einforce this
impression and finally this impression itself will
make subsequent territorial modifications on
which the powers may agree more difficult.
Moreover the experience of the years just after
tlie First World War showed that the most active
and successful adversaries of any kind of decen-
tralization of the Reich were precisely the local
agents of the central German administration.
For all these reasons, the French Government,
continues to feel that, if the occupying powers in-
tend to follow a policy of decentralization they
should not begin to establish extended (tentacu-
laries) administrations having independent au-
thority. The French Government could not in
any case agree to the extension of the authority
of such administrations to the Ruhr, Rhineland
or even more to the Saar.
This does not mean that my government does
not recognize tlie necessity of coordinating the
activities of the various zones. It considers, how-
ever, that this coordinating I'ole belongs to the
inter-Allied Council and that the Council, under
present conditions, should alone retain the power
of making decisions, these decisions to continue
to be presented, as necessary, to the local Ger-
man administrations through the Allied authori-
ties in each zone. As a matter of fact, this position
would seem to be close to that which you j'ourself
take in stating that the time has not yet arrived
to establish any sort of central German Govern-
ment.
If it is only a question, as I understand it, of
facilitating the examination of technical questions
coming under the competence of the inter-Allied
Council and of assuring better coordination in the
governing of the four zones by the authorities
charged with their administration, it would not
seem necessary to weaken the rules recalled above
to obtain this result. It would suffice for the Coun-
MARCH 17, 1946
443
cil, without changing present practice, to obtain
the collaboration of the German technical admin-
istrations in the preparation and support of the
Council's policy.
The French Government would not object that
the establishment of services of this nature and
the definition of their duties should be examined
by representatives of the four governments.
Moreover, whatever may be the complexity of
the problem of the western frontiers of Germany
and the future regime of the Rhine- Westphalian
region, my government, whose views were pre-
sented in the memorandum submitted to the Coun-
cil of Ministers for Foreign AflFairs on September
13, and subsequently explained by the Chief of the
French delegation on the 26th of that month,
feels it must point out that no reply has been re-
ceived up to this date in spite of the visits of M.
Alphand to Moscow. It hopes that these proposals
which the governments primarily interested have
had the time to study in all their phases, may also
be submitted to joint discussion.
It therefore suggests that a four-party confer-
ence be called as soon as possible for the examina-
tion of both the question of central German
administrations and that of western Germany. If
the idea of such a conference should be approved
by the Government of the United States and the
two other governments — to whom a similar pro-
posal has been made — the French Government
would be happy to receive any suggestions regard-
ing the conditions under which such a conference
might be organized. It feels that an appropriate
setting would be the Conference of Ministers for
Foreign Affairs which, in accordance with the res-
olution adopted at its meeting of September 26,
is the proper body having competence for the dis-
cussion of these matters. The French Government
is, however, ready to examine any other method
of examination which might be presented to it.
Repatriation of U. S. and Soviet Citizens
STATEMENT BY DEPARTMENT OF STATE
[Released to the press March 8]
As was announced by the White House on Feb-
ruary 12, 1945,^ there was concluded at the Yalta
Conference an agreement signed by Major Gen-
eral John Eussell Deane of the United States
Army and by Major General A. A. Gryzlov of
the Soviet Army on behalf of their respective gov-
ernments, which provided for the repatriatioai of
United States and Soviet citizens freed by their
respective forces. The primary object of this
agreement was to facilitate the speedy return to
the United States of American prisoners of war
liberated from German hands by the Red Army
and the return to the U.S.S.R. of Soviet prisoners
of war liberated by United States forces. On the
basis of this agreement, all American liberated
prisoners of war were enabled to return to the
United States as speedily as practicable.
In the implementation of this agreement the
United States Government is facilitating the re-
patriation to the Soviet Union of only those per-
sons who were both citizens of and actually domi-
ciled within the Soviet Union on September 1,
1939.
The repatriation of Soviet citizens is not facili-
tated unless they so desire, with the exception of'
those who fall within the following categories :
(1) Those who were captured in German uni-
foi'ms ;
' The following was released to the press by the White
House on Feb. 12, 1945, not printed heretofore:
A comprehensive agreement was reached at the Crimea
Conference providing detailed arrangements for the pro-
tection, maintenance, and repatriation of prisoners of
war and civilians of the British Commonwealth, Soviet
Union, and United States liberated by the Allied forces
now invading Germany.
Under these arrangements each ally will provide food,
clothing, medical attention, and other needs for the na-
tionals of the others until transport is available for their
repatriation. In caring for British subjects and Ameri-
can citizens the Soviet Government will be assisted by
British and American officers. Soviet officers will assist
British and American authorities in their task of caring
for Soviet citizens liberated by the British and American
forces during such time as they are on the continent of
Europe or in the United Kingdom, awaiting transport to
take them home.
We are pledged to give every assistance consistent with
operational requirements to help to insure that all these
prisoners of war and civilians are speedily repatriated.
444
DEPARTMENT OF STATE BULLETIN
(2) Those who were members of the Soviet
armed forces on or iifter June 2'2. 1941 and were
not subsequently discliarged therefrom;
(3) Those who on the basis of reasonable evi-
dence have been found to be collaborators with the
enemy, havino- voluntarily rendered aid and
comfort to the enemy.
AGREEMENT RELATING TO PRISONERS OF
WAR AND CIVILIANS LIBERATED BY
FORCES OPERATING UNDER SOVIET
COMMAND AND FORCES OPERATING UN-
DER UNITED STATES OF AMERICA COM-
MAND
The Gi)vernment of the United States of America on the
one hand and the Government of the Union of Soviet
Socialist Republics on the other hand, wishing to make
arrangements for the care and repatriation of United
States citizens freed by forces operating under Soviet
<-omnianil and for Soviet citizens freed by forces oi^erating
under United States command, have agreed as follows:
Aiiiclr 1.
All Soviet citizens liberated by the forces operating
inider United States command and all United States citi-
zens liberated by the forces operating under Soviet com-
mand will, without delay after their liberation, be sep-
arated, from enemy prisoners of war and will be main-
tained separately from them in camps or points of con-
centration until they ha'" been handed over to the Soviet
or T'nitfd States authorities, as the case may be, at ijlaces
agreed upon between those authorities.
United States and Soviet military authorities will re-
spectively take the necessary measures for protection of
camps, and points of concentration from enemy bombing,
artillery fire, etc.
ArtkAc 2.
The contracting parties shall ensure that their mili-
tary authorities shall without delay inform the comije-
tent authorities of the other party regarding citizens of
the other conti-acting party found by them, and will at
the same time take the necessary steps to implement the
provisions of this agreement. Soviet and United States
repatriation representatives will have the right of irame-
tliate access into the camps and points of concentration
where their citizens are located and they will have the
right to appoint the internal administration and .set up
the internal discipline and management in accordance
with the military procedure and laws of their country.
Facilities will be given for the despatch or transfer of
officers of their own nationality to camps or points of
concentration where liberated members of. the respective
foi-ces are located and there are insufficient officers. The
outside protection of and access to and from the camps
or points of concent j'atioii will be established in accord-
ance with the instrnctidns cil' the military connnander in
whose zone tliev ai'e located, and the iiiililarv connnander
shall also appoint a conmiandant, who shall have the
final responsibility for the overall administration and
discipline of the camp or point concerned.
The removal of camps as. well as the transfer from one
camp to another of liberated citizens will be effected by
agreement with the competent Soviet or United States
authorities. The removal of camps and transfer of lib-
erated citizens may. in exceptional circumstances, also be
effected without preliminary agreement provided the com-
petent autluirities are immediately notified of such re-
moval or transfer with a statement of the reasons. Hos-
tile propaganda directed against the contracting parties
or against any of the United Nations will not be permitted.
Article 3.
The conipetefit United States and Soviet authorities
will supply lil>erated citizens with adequate food, cloth-
ing, housing and medical attention both in camps or at
points of concentration and en route, and with tran.sport
until they are handed over to the Soviet or United States
authorities at places agreed upon between those authori-
ties. The standards of such food, clothing, housing and
medical attention shall, subject to the provisions of Article
S, be fixed on a basis for privates, non-connnissioned offi-
cers and officers. The basis fixed for civilians shall as
far as possible be the same as that fixed for privates.
The contracting parties will not demand compensation
for these or other similar services which their authori-
ties may supply respectively to liberated citizens of the
other contracting party.
Articlr ,}.
Each of the contracting parties shall be at liberty to
use in agreement with the other party such of its own
means of transport as may be available for the repatria-
tion of its citizens held b.v the other contracting party.
Similarly each of the contracting parties shall be at lib-
erty to use in agreement with the other party its own
facilities for the delivery of supplies to its citizens held
by the other contracting party.
Articlr .').
Soviet and United States military authorities shall
make such advances on behalf of their respective govern-
ments to liberated citizens of the other contracting party
as the cfimpetent Soviet and United States authorities
shall agree upon beforehand.
Advances made in currency of any enemy territory or
in currency of their occupation authorities shall not be
liable to compensation.
In the case of advances made in currency of liberated
non-enemy territory, the Soviet and United States Gov-
ernments will effect, each for advances made to their
citizens necessary settlements with the Governments of
the territory concerned, who will be informed of the
amount of their currency paid out for this purjiose.
Articlr ()'.
Kx-prisoners of war and civilians of each of the con-
tracting parties nia.v, until their repatriation, lie employed
in the management, maintenance and aduiinistrati<in of
the camps or billets in which they ;ire situated. They
MARCH 17, 1946
445
may also be ciupld.ved on a vuluiitai'.v liasis on otlier work
ill tlio vicinity of tlieir canijis in furtlierance of the common
war effort in accordance witli agreements to be reached
between the competent Soviet and United States antliori-
ties. Tlie question of payment and conditions of hibour
shall be determined by agreement between these authori-
ties. It is understood that liberated members of the
respective forces will be employed in accordance with
military standards and procedure and under the supervi-
sion of their own officers.
Article 7.
The contracting parties shall, wherever neces.sary, use
all practicable means to ensure the evacuation to the rear
of these lil)erated citizens. They also undertake to use
all practicable means to transport liberated citizens to
places to be agreed upon where they can be handed over
to the Soviet or ITnited States authorities respectively.
The handing over of these liljerated citizens shall In no
way be delayed or impeded by the reipiirements of their
temporary employment.
Article 8.
The contracting parties will give the fullest possible
effect to the foregoing provisions of this Agreement, sub-
.iect only to the limitations in detail and from time to time
of operational, supply and transport conditions in the
several theatres.
Arlific 9.
This Agreement .shall come into force on signature.
Done at the Crimea in duplicate and in the English and
Russian languages, Iwth being equally authentic, this
eleventh day of 1-^ebruary, 1945.
FOR THE GOVERNMENT OF
THE UNITED STATES OF
.\MERICA
John R. Deane, U.S.A.
Major General
FOR THE GOVERNMENT OP
THE UNION OF SOVIET
SOCIALIST REPUBLICS
A. A. Gryzlov,
Major General
Disposal of the German Merchant Fleet
REPORT OF THE TRIPARTITE MERCHANT MARINE COMMISSION
[Released to the press March 7]
At the conference held at Berlin between July
17 and August 2, 1945, the Governments of the
Union of Soviet Socialist Republics, the United
Kingdom, and the United States of America agreed
that the German merchant marine should be di-
vided equally among the Union of Soviet Socialist
Republics, the United Kingdom, and the United
States excluding the inland and coastal .ships de-
termined by the Allied Control Council for Ger-
many to be necessary for the maintenance of the
German peace economy. It was further agreed
that the United Kingdom and the United States
of America would provide out of their shares of
the surrendered German merchant ships appro-
priate amounts for allied states whose merchant
marines suffered heavy losses in the common cause
against Germany, except that the Union of Soviet
Socialist Republics would provide out of its share
for Poland. ,
For the purpose of dividing the German mer-
chant marine into the three initial shares, the three
Governments agreed to constitute a Tripartite
Merchant Marine Commission to submit to them
agreed recommendations for the allocation of
specific German merchant ships and to handle
other detailed matters arising out of the agree-
ment.
The Commission was accordingly established
and met at Berlin from September 1 to December
7, 19-15, when it presented its report for the three
Governments approval.
The report makes detailed provision for divid-
ing a total of approxinmtely 1,189,600 gross reg-
istered tons of sea-going German merchant ship-
ping between the three powers, in shares based on
a valuation of the tonnage at 1938 building prices,
after making allowance for depreciation. The
ships so allocated represent a total value on this
basis of over 20,000.000 pounds sterling. The re-
port provides foi' the I'etention of a further 200,-
000 deadweight tons, consisting entirely of ships
under 2.250 deadweight tons, for the maintenance
of the German peace economy. The report aLso in-
cludes recommendations concerning the very early
delivery of the vessels allocated and other sub-
sidiary questions.
The report and recommendations of the Tri-
partite Merchant Marine Commission have been
approved by the Govermnents of the Union of
Soviet Socialist Republics, the United Kingdom,
and the United States, and the transfer of the ves-
sels is now taking place.
The German fishing fleet, dredger fleet, poit
facilities, and inland Avater transport will form the
subject of a separate announcement.
446
DEPARTMENT OF STATE BULLETIN
Special Diplomatic Mission to
the Yemen
[Released to the press March 6]
The Department of State announces that the
membership of the Special Diplomatic Mission of
the United States to the Kingdom of the Yemen
will be as follows:
William A. Eddy, Chief of Special Diplomatic
Mission with the personal rank of Minister.
Mr. Eddy is concurrently Envoy Extraordi-
nary and Minister Plenipotentiary to Saudi
Arabia.
Richard H. Sanger, Division of Near Eastern Af-
fairs, Department of State, Member of Special
Diplomatic Mission.
Harlan B. Clark, Foreign Service Officer, Member
and Administrative Officer of Special Diplo-
matic Mission.
Dr. Oswald F. Hedley, Senior Surgeon, United
States Public Health Service, Technical Member
of Special Diplomatic Mission.
Lieutenant Colonel Jack N. Nahas, Signal Corps,
United States Army, Technical Member of Spe-
cial Diplomatic Mission.
Fred H. Await, Economic Analyst, Foreign Serv-
ice Auxiliary, Technical Member of Special
Diplomatic Mission.
William G. Blair, Department of State, Techni-
cal Member of Special Diplomatic Mission.
The Mission is expected to reach Sana'a about
April 10.
Restoration of Properties of
American Nationals in Bulgaria
[Released to the press March 5]
The Department of State has been informed by
its representative at Sofia, Bulgaria, that the Bul-
garian (Jovernment has inserted advertisements in
Bulgarian newspapers seeking to obtain infor-
mation regarding properties of American nation-
als in that country. It is understood that such
information is desired in connection with the obli-
gations assumed by the Bulgarian Government,
under the terms of the Bulgarian Armistice
Agreement signed at Moscow on October 28, 1944,
to restore rights and interests of the United
Nations and their nationals in Bulgaria.
For possible use in that relation the Depart-
ment of State is forwarding to its representative
at Sofia summaries prepared by the Treasury De-
partment of property interests of American na-
tionals in Bulgaria as reported to it or a Federal
Reserve Bank by such nationals on form TFR-
500. However, in order that the Department of
State's representative and the Bulgarian Govern-
ment may have as complete information as pos-
sible, the Department is suggesting to all Ameri-
can nationals who did not file reports on form
TFR-500 that they file with the Department of
State as soon as possible, for transmission to Sofia,
statements regarding their property interests in
Bulgaria. Such statements should be in the form
of sworn statements, in duplicate, and should in-
clude, in addition to any other facts regarded as
pertinent, information on tlie following points:
1. The names, nationalities, and addresses of the
persons claiming ownership of the property and
a statement showing how and when American
citizenship was obtained; and, if acquired by nat-
uralization, the number of each naturalization
certificate should be given and the name and loca-
tion of the court by which the certificate was
issued.
2. The name and nationality of the present oc-
cupant or person in possession of the property, if
known.
3. A description of the property, its exact loca-
tion, and means of identification.
4. The estimated pre-war value of such prop-
erty and the amount of any mortgage or other
encumbrance thereon.
5. The nature and extent of any non-American
interest in the property.
6. A brief statement explaining how, when, and
from whom such property was acquired, and if
by purchase, the price paid.
7. All available information as to the fate of
the property during the war.
8. If the owner has a legal proxy in Bulgaria,
his name and address, and the extent of his powers,
should be stated.
The statements should be forwarded to the Divi-
sion of Foreign Service Administration, Depart-
ment of State, Washington 25, D. C, as soon as
possible.
MAKCH 17, 1946
447
U. S. Urges Inclusion of
Opposition Parties in
Bulgarian Government
[Released to the press March 5]
Text of an atdc-memoire handed by Mv. Benjamin
V. Cohen. Counselor of the Department of State,
to Lf. Gen. Vladimir Stoicheto, Bulgarian Repre-
sentative in Washington, on February 22
In view of the misunderstanding which appears
to exist in certain quarters in Bulgaria as to the
position of the United States Government in re-
gard to the decisions concerning Bulgaria taken
at the meeting of Foreign Ministers in Moscow in
December, 1945, the United States Government de-
sires that the following statement of its views in
the matter, which liave been made known to the
Soviet and British Governments, be brought to the
attention of the Bulgarian Government:
It is the United States Government's interpreta-
tion of the Moscow decision that the Bulgarian
Government and opposition should be urged to find
a mutually acceptable basis for the participation
in the present Bulgarian Government of two truly
representative members of the opposition parties.
It was never the understanding of the United
States Government that pressure was to be exerted
on the opposition to nominate two candidates for
pro forma inclusion into the Government without
regard to the conditions of their participation. Al-
though the Moscow agreement did not set forth any
specific conditions for the inclusion of the two rep-
resentatives of the opposition, it did, in the view
of the United States Government, anticipate that
the participation of these representatives would
be on the basis of conditions mutually agreeable
to both the Bulgarian Government and the
opposition.
It was and is the earnest hope of the United
States Government that, meeting in a spirit of
conciliation, representatives of the Bulgarian
Government and of the opposition could and would
agree to work together on a mutually acceptable
basis which would enable two truly representative
members of the opposition parties to participate
in the Government.
Procedure for Transporting
Automobiles to American
Zone in Germany
[Keleasod to the press March 4]
Arrangements have been made with the War
Department for American businessmen and press
correspondents to be allowed to bring their own
private automobiles with them when they are
granted permission to enter the American zone of
occupied Germany. This arrangement is subject
to the prior approval of the theater commander in
each case, which will be requested by the Depart-
ment of State.
Applicants for permission to enter the Ameri-
can zone should include with their passport ap-
plications statements that they wish to take their
automobiles with them, if they desire to take ad-
vantage of this arrangement.
Travelers obtaining the required permission
will have to make their own arrangements with
commercial carriers for the shijDment of tlieir cars,
as no government transportation is available for
the purpose. Gasoline, oil, and lubricants will
normally be available in the American zone, but
it is understood that no spare parts are available,
and that it is difficult to find facilities for repair
work.
Ashes of Late Melimet Miinir
Ertegiin to be Transported
to Turkey
[Released to the press March 6]
The remains of the late Turkisli Ambassador,
His Excellency Mehinet Miinir Ertegiin, wlio died
at his post in Washington as Dean of tlie Diplo-
matic Corps on November 11, 1944, will be re-
turned with full honors to Istanbul, Turkey, on
board the U.S.S. Missouri, sailing from Xew York
Harbor on March 21 next.
On the return voyage the Missouri will visit
Piraeus, Greece, Alexandria, Egypt, Naples, and
Tangier.
The destroyer U.S.S. Power will act as escort
to the Missouri.
448
DEPARTMENT OF STATE BULLETIN
Industrial Enterprises in
Manchuria
U. S. VIEWS EXPRESSED TO CHI-
NESE AND SOVIET GOVERNMENTS
[Released to the press Maroh 5]
Presented to the Chinese Government and the
(government of the U. S. S. E., respect /rely,
through the American Embassies in Chungking
and Moscow, on instruction of February 9 of Sec-
retary of State James F. Byrnes
Current reports of discussions between oflicial.-
of the Chinese Government and the Kussian Gov-
erinnent with regard to the disposition and con-
trol of industrial enterjn-ises in Manchuria give
concern to this Government.
The Sino-Soviet Treaty and agreements signed
August 14, 1945 provide for joint Sino-Soviet
control over certain trunk railways in Manchuria,
but these agreements exclude reference to any
similar control over industrial enterprise in ]Man-
churia.' It is the understanding of the United
States Government, which was kept informed of
the course of negotiations which led up to the
agreements of August 1945 and which has ac-
cepted those agreements, that exclusive Sino-
Soviet governmental control over Manchurian en-
terprise would be limited to the railways dealt with
in the aforesaid agreements. It is therefore dis-
turbing to this Government to receive reports that
discussions are under way which might result in
the establishment of exclusive Sino-Soviet control
over industrial entei'prises in Manchuria. Under
jnesent conditions, when free access to Manchuria
is not open to nationals of other powers and equal-
ity of opportunity in seeking participation in the
economic development of Manchuria is denied
Americans and other Allied natifmals. it is felt
that negotiation of agreements between the Chi-
nese and Russian Governments with regard to in-
dustries in Manchuria would be contrary to the
l)riuciple of the Open Door, would constitute clear
discrimination against Americans who might wish
an opijortimity t<i participate in the development
of Manchurian industry, and might place Ameri-
can commercial interests at a distinct disadvan-
tage in establishing future trade relations with
Manchuria.
Directly related to this matter of the industries
in Manchuria is the matter of reparations policy
for Japan, because the major poi-tion of the indus-
tries of IManchuria were Japanese-owned prior
to the defeat of Japan. This Government con-
siders that the ultimate disposition of Japanese
external assets, such as the industries in Man-
cluiria, is a matter of conunon interest and concern
to those Allies who bore the nujjor burden in de-
feating Japan. This Government is now prepar-
ing a general policy outline for consideration by
the concerned governments with regard to Japa-
nese reparations. It will be suggested that an
Inter-Allied Reparations Conunission for Japan
be established, and that one of the primary func-
tions of this Commission will be the final allo-
cation f)f Japanese external assets among the var-
ious claimant nations. It would .seem, therefore,
most inappropriate at this juncture for any final
disposition to be made of Japanese external assets
in Manchuria either by removal from ^lanchuria
of such indu.strial assets as "war booty" or by
agreement l)etweeu the Russian and Chinese Gov-
ernments for the control of ownership of those
assets.
The Government of the United States desires to
lie cooperative with the Chinese and Soviet Gov-
ernments in seeking a solution of the problems
outlined above and it hopes that the other two
Governments are animated bj' a similarly coopera-
tive spirit. It would therefore appreciate being
informed of any discussions which the two Gov-
ernments may be having or maj' plan to have or
any action they may have taken, in regard to the
disposition or control of industrial enterprises in
Manchuria and we woidd welcome ftdl and frank
discussion of the general problem.
CHINESE REPLY =
Received by the Secretary of State from the Chi-
nese Foreign Office
The Soviet Govei'nment declared in a memo-
randum addressed to Chinese (iovei'iunent on Jan-
uary L?l, 1946 that all Japanese enterprise- in the
Chinese northea.stern jjrovinces which had ren-
dered services to the Jaj)anese Army were re-
' HULLETIN of Feb. 10. 11)4(!, p. 2(11.
" ravtiiil text.
MARCH 17. 1946
449
garded Ijy Soviet Union as war booty of Soviet
forces. The Cliinese (jovernnient considers this
claim of Soviet Government as far exceeding the
scope of war booty as generally recognized by
international law and international usage and for
this reason the two governments have not been able
to read) a unanimity of views of fundamental
principles involved.
In another memoran(^lum presented to officials uf
the Generalissimo's Headquarters in Changchun
tile Soviet Government declared that it proposed
to hand over to China a part of the Japanese
enterprises which Soviet Union regarded as war
booty while remaining enterprises (including
specified coal mines, power plants, iron and steel
industries, chemical industries and cement indus-
tries) wei'e to be jointly operated by China and
Soviet Union. Chinese Government on its pai-t
has found it impossible to agree to this Soviet
proposal because it goes beyond provisions of the
Sino-Soviet agreements of August 14, 1945 and is
contrary to the aforesaid stand of Chinese Gov-
ernment regarding Japanese properties and enter-
prises in Cliina.
Tribute to General MacArthur
[Releaseii to tlic press March S]
The Secretary of State on March 8 authorized
publication of the following letter to General of
the Army Douglas A. MacArthur:
March 7, 1946
Dear Gexekal MacArthur:
I wish to thank you very much for the inter-
esting Japane.se sword which George Atcheson
brought me from you.
I take this opportunity to congratulate you on
the splendid service you have rendered in Japan.
We have become accustomed to your achievements
as a field commander. Since the surrender of the
Japanese last August, you have demonstrated that
you are a .statesman as well as a soldier.
I am very proud of your successes in time of
peace as well as in time of war.
With best wishes, I am,
Vei'y sincereh' yours,
James F. Byrnes
General of the Army Douglas A. MacArthur,
Supreme Commander for the Allied Powers,
Tokyo, Japan.
Extent of General Mac Arthur's
Jurisdiction in Pacific
[Eeloased to tlie press March G]
In response to a question at his press conference
as to tlie extent of General MacArthur's jurisdic-
tion in the Pacific, the Secretary stated that it ex-
tended wherever there were .Japanese troops; antl
wlien asked as to whether that included Manchu-
ria, he stated that he thouglit it would unless au-
thority had been delegated to other conunanders
when it would depend on the terms of the delega-
tion. For accurate information he stated that in-
cjuiry should be made of the War Department.
The Secretary finds on consultation with the War
Dei)ai-tnient that General MacArthur has no re-
sponsibility for the action of local allied com-
manders outside of Japan, Southern Korea, and
certain islands of the Pacific.
Examination of Korean
Economy
[Released to the press March 5]
The Department of State is considering meth-
ods, including financial aid to Korea, by which
the United States can assist Korea to develop a
strong and independent economy, freed of Japa-
nese influence. To provide necessary information
the Department has sent Mr. Gordon Strong of
the Office of Financial and Development Policy to
Korea where lie is serving with Mr. Arthur Bunce,
recently appointed economic and agricultural ad-
viser to Lieutenant General Hodge.
Mr. Strong will examine the needs of Korea
with respect to financial and other assistance in
reiiabilitating and developing its industrial and
transportation facilities. This information will
be valuable both in i^lanning a general program
and in acting upon specific requests for such assist-
ance that may be made by the Korean Provisional
Government, to be set up by the U.S.-U.S.S.R.
Joint Commission.
It will be the policy of the United States to in-
sure that aid in Korea's economic development is
given on terms and under conditions which have
been fully discussed with and agreed to by the
Korean Provisional Government.
450
DEPARTMENT OF STATE BULLETIN
Raphael O'Hara Lanier Takes
Oath of Office as U. S.
Minister to Liberia
[Released to the press March 1]
At 12 noon on March 1. Raphael O'Hara Lanier
took the oath of office as American Minister to
Liberia. Mr. Lanier succeeds Lester A. Walton,
who recently resigned from his post at Monrovia
after more than 10 years of faithful and distin-
guished service. Mr. Lanier will bring to the
Legation at Monrovia a fund of administrative
ability which he has acquired through many years
of service at various Negro institutions. Mr.
Lanier's career as an educator and administrator
began in 1923 when he joined the staff of Tuskegee
Institute as a teacher. From 1925 to 1933, he
served as Dean and Director of Summer and Ex-
tension Sessions at Florida A. and M. College,
Tallahassee, Fla. In 1933 he was appointed Dean
of Houston College at Houston, Tex., where he re-
mained until 1938 when he joined the National
Youth Administration as Assistant Director in the
Division of Negro Affairs. In 1940 Mr. Lanier
went to Hampton Institute, Hampton, Va., and
served as Dean of Instruction, Dean of Faculty
and Acting President until 1945 when he ac-
cepted the position of Special Assistant to the As-
sistant Chief of the Bureau of Areas, United
Nations Relief and Rehabilitation Administration.
The new Minister to Liberia has long been noted
for his special interest in international and i"ace
relations, economic and social problems, and edu-
cational matters in general.
Mr. Lanier's mission will constitute another firm
step forward in the maintenance of close and
friendly relations between this country and the
sovereign state of Liberia and in the implementa-
tion of American policy toward Liberia. This
policy, which has been ably carried out in recent
years by Mr. Lanier's predecessor, encompasses all
practicable assistance and encouragement to
Liberia in the achievement of political, social, and
economic progress. With this goal in mind, the
Government of the United States is cooperating
with the Goverimient of Liberia in the construc-
tion of a port at Monrovia from lend-lease funds
which will be repaid by the Liberian Government
from port charges when the port comes into opera-
tion. An American Technical Mission is at pres-
ent working in Liberia and advising the Govern-
ernment on measures which should be undertaken
to promote the economic and social improvement
of the country. In addition, a United States Pub-
lic Health Mission, under the directorship of a
prominent American Negro public-health expert,
is engaged in improving hygiene, sanitation, and
medical facilities.
The Department of State also released on March
1 the following text of a letter of commendation
from the Secretary of State to Lester A. Walton,
who recently resigned as Minister to Liberia :
Jamiary 31, IQlfi
My Dear Mr. Walton :
I have learned with regret that ,you have found
it necessary for personal reasons to resign as Min-
ister to Liberia and I note that the President has
accepted your resignation. You have faithfully
served the Department for more than ten years at
that post, the longest incumbency in the history
of our official relations with Liberia, and have
done much to foster our friendly relations with
that country and its people.
Owing in great measure to your untiring efforts,
this Government has recently undertaken to co-
operate with the Liberian Government in carry-
ing out a number of projects which will contribute
materially to the advancement of economic and
social pi'ogress in Liberia. The inauguration of
these projects was greatly facilitated by your skill
in conducting the negotiations leading up to the
various agreements upon which they are based.
The invaluable experience and knowledge of the
people of Liberia which you have gained during
your long tenure of office have been ably employed
in carrying out the Department policies. They
will be sorely missed upon your departure from
Monrovia.
In expressing the appreciation of the Depart-
ment for the long and faithful service which you
have rendered, I desire to add my personal ex-
pression of gratitude for your cooperation. I
hope that you will find it possible to continue to
contribute in your future private capacity to the
good work you have so long and so ably carried
on as American Minister in promoting the f riend-
shij) between the United States and Liberia.
Sincerely yours,
James F. Byrnes
MARCH 17, 1946
451
Conversations With French on
Double Taxation
[Released to the press March 5]
The French Government has accepted an invi-
tation of the Government of the United States to
send a delegation to Washington for ad referen-
dum negotiation of an estate tax convention and
revision of the income tax convention of July 25,
1939 between the two countries. The French Dele-
gation is expected to arrive shortly after March
15.
Officials of the Department of State and of the
Treasury Department, including the Bureau of
Internal Revenue, will participate in the conver-
sations on behalf of the Government of the United
States.
If appropriate bases are found to exist, drafts of
conventions will be prepared and submitted by
the representatives to their respective govern-
ments for consideration with a view to signing.
Synthesis of Penicillin
United States-United Kingdom
By an exchange of notes dated January 25.
1946, between the Acting Secretary of State and
the British Ambassador in Washington, there
was effected an agreement between the Govern-
ment of the United States of America and the
Government of the United Kingdom of Great
Britain and Northern Ireland relating to the prin-
ciples applying to the exchange of information
looking to the synthesis of penicillin. This agree-
ment was concluded in pursuance of a request of
the Office of Scientific Research and Development,
an agency of the United States Govermnent, and
the British Medical Research Council. The prin-
cipal purpose and effect of the agreement is to con-
firm and formalize the terms on which, during
the period December 1, 1943 to October 31, 1945,
inclusive, scientific information pertaining to the
purification, structure, and synthesis of penicillin,
or a therapeutic equivalent, was interchanged.
The agreement expresses the understanding of the
two Governments with respect to the disposition
of patent rights resulting from the joint research
project. It is agreed that the United States Gov-
ernment will decide whether discoveries and in-
ventions made by the American participating con-
cerns shall be the subject of patent applications,
while the British Government will decide whether
discoveries and inventions made by British par-
ticipating concerns shall be the subject of patent
applications. Each Government will determine
the disi^osition of inventions covered by patents in
its own territory, while joint consideration will be
given to the disposition of inventions covered by
patents in other countries.
Sanitary Conventions of 1944
Belgium
The Belgian Government has acceded to the
International Sanitary Convention, 1944,^ and to
the International Sanitary Convention for Aerial
Navigation, 1944,= effective January 25, 194G, the
(late of the receipt in the Department of State of
a note from the Belgian Ambassador. The Am-
bassador stated in his note that the accession is
regarded as applying to Belgium, the Belgian
Congo, and the territory of Ruanda-Urundi under
Belgian mandate.
Whaling Agreement and
Protocol
Chile I
The American Embassy at London has informed
the Department of State of the accession of the
Chilean Government to the international agree-
ment for the regulation of whaling signed in 1937 ^
and to the protocol thereto signed in 1938.'' The
accession became effective on February 13, 1946.
The Foreign Service
Consular Offices
The American Consulates General at Frankfurt, Berlin,
and Hamburg, and the Consulate at Stuttgart were opened
to the public on March 1, 1946.
' Treat.v Series 991.
' Treaty Series 933.
' Treat.v Series 992.
* Treaty Series 944.
452
DEPARTMENT OF STATE BULLETIN
The Congress
Authorizing I he AiiiKiintnu'iit of Lt. Gen. Walter B.
Smith as Ambassador to tlie Union of Soviet Socialist
Republics. H.Rept. 1674, 79th Cong., To accompany H.R.
5529. 2 pp. [Favorable report.]
Alaskan International Highwa.v Commission. H.Rept.
1679, 79th Cong., To accompany H.R. 1!S71. 2 pp. [Fa-
vorable report.]
The Department
Appointment of Officers
[Reli'asHil to the press March S]
Assistant Secretary Benton ainiounced the appointment
of (i. Kenneth Holla nil as Associate Director of the Office
of International Information and Cultural Affairs. Mr.
Holland will supervise cultural activities relating to the
exchange of students, professors, and specialists, and the
maintenance of United States information libraries abroad.
Mr. Holland comes to the Department from the Office of
Inter-American Affairs, where he has served as president
of the Inter-American Educational Foundation.
Walter S. Surrey as Chief in the Division of Economic
Security Controls, effective February 1, 1946.
John D. Sumner and John I'. Young as Advisers in
the Office of Financial and Development Policy and in the
Division of Investment and Economic Devehipment, ef-
fective January 14, 1946. This announcement supple-
ments information contained in the Buixen^ix of March 3,
1946.
Publication of the Treasury
Department
Census of ForcigH-ihviud Assets in the United
States. United S^tates Treasury Department,
Office of the Secretary, Washington, D. C. 1945.
88 pp.
This report shows the results of a census of
foreign-owned assets in the United States taken
in 1941 by the Treasury Department's Foreign
Funds Control. The data provided by the census
are available not only for use in unfreezing for-
eign-owned assets over which the Foreign Funds
Control exercised wartime supervision, but also
for tlieir application to various post-war prob-
lems of international concern.
This census was taken immediately after
"freezing control" was extended iu June, 1941 to
Germany, Italy, and the remainder of continental
Europe. In order to obtain full information the
Tieasury circiUarized tens of thousands of ques-
tionnaires to business concerns and individuals.
Copies of the report may be obtained from the
Superintendent of Documents, Government Print-
ing Office, Washington 25, D. C.
Contents— Continued
Page
Examination of Korean Economy 449
Raphael O'Hara Lanier Takes Oath of Office as U. S. Minister
to Liberia 450
*C'onversations With French on Double Taxation 451
♦Synthesis of Penicillin: L'nited States-United Kingdom . . 451
♦Sanitary Conventions of 1944: Belgium 451
♦Whaling Agreement and Protocol: Chile 451
The Foreign Service: Consular Offices 451
The Congress 452
The Department: Ap])ointment of Officers 452
Publication of the Treasury Department 452
'Treaty information.
PUBLISHED WITH APPROVAL OF DIRECTOR OF BUREAU OF THE BUDGET
U S GOVERNMENT PRINTING OFFICE- 1946
THE DEPARTMENT OF STATE
iMHm
VOL. XIV, NO. 351
MARCH 24, 1946
United States Military Strength — Its Relation to the
United Nations and World Peace
By THE SECRETARY OF STATE page 481
German Documents on Sumner Welles Mission, 1940
page 459
Composition of Organs, Commissions, and Committees
of the United Nations
Notes prepared by DENTS MYERS page 467
The American Trade Proposals: Restrictive Business
Practices
Article by ROBERT TERRILL page 455
^©NT o^
For complete contents
see inside cover
'-*TES O^
THE DEPARTMENT OF STATE
BULLETIN
Vol. XIV- No. 351 •
UBLICATION 2496
March 24, 1946
For sale by the Superintendent of Documents
U. S. Government Printing Office
Washington 25, D. C.
Subscription:
52 issueBf $3.50; single copy. 10 cents
Special offer: 13 weeks for $1.00
(renewable only on yearly baeis)
The Department of State BULLETIM,
a weekly publication compiled and
edited in the Division of Research and
Publication, Office of Public Affairs,
provides the public and interested
agencies of the Government with
information on developments in the
field of foreign relations and on the
irork of the Department of State anil
the Foreign Service. The BVLLETII\
includes press releases on foreign
policy issued by the White House and
the Department, and statements and
addresses made by the President and
by the Secretary of State and other
officers of the Department, as well as
special articles on various phases of
international affairs and the functions
of the Department. Information con-
cerning treaties and international
agreements to which the United States
is or may become a party and treaties
of general international interest is
included.
Publications of the Department, cu-
mulative lists of which are published
at the end of each quarter, as well as
legislative materialin thefield of inter-
national relations, are listed curren tly.
3. sUPERmTENOENT Of DOCUt..tNW
/^PR 83 1946 Contents
Page
The American Trade Proposals: Restrictive Busi-
ness Practices. Article by Robert P. Terrill . . 455
GermaniDociimeiits on Sumner,Welles Mission, 1940:
Directions for the Conferences With Mr. Sumner
Welles . . , 459
Memorandum of a Conversation Between Field
Marshal Goering and Under Secretary of
State Sumner Welles at Karin Hall, March 3,
1940 460
Composition of Organs, Commissions, and Com-
mittees of the United Nations. Notes pre-
pared by Denys P. Myers 467
International Organizations and Conferences
Calendar of Meetings 476
Activities and Developments:
Fourth Session of the Council of UNRRA 476
The Far Eastern Commission 477
The Inter-American Conference for Maintenance of Conti-
nental Peace and Security 477
World Fund and Rank Inaugural Meeting: .
Message From President Truman 478
Address by the Temporary Chairman 478
Fourth Council Session of UNRRA, Message From the
President 480
The Record of the Week
United States Military Strength — Its Relation to the United Paire
Nations and World Peace. By the Secretary of State . . 481
Inquiry on Reports of Soviet' Military Movements .... 483
American Assistance to China. Remarks by George C.
Marshall 484
Reply to Soviet Inquiry on United States Aide- Memoire to
Bulgaria 485
Reply to French Proposal on Spanish Situation 486
♦Discontinuance of United Maritime Authority:
Meeting of Executive Board 487
Text of Agreement 488
Resumption of Postal Service With Germany Explored . . . 490
Proposed Wool Program 491
The Proclaimed List 491
The Citizen's Role in Foreign Policy 492
Closing of Displaced Persons Camps Considered 498
Resignation of Leo Pasvolsky 499
Medals of Merit Presented to Foreign Service Officers .... 499
Consular Offices 499
*Trt'aty information.
The American Trade Proposals: Restrictive
Business Practices
Article by ROBERT P. TERRILL
Introduction
THE CHARACTERISTICS of international cartels and
their growth during the inter-war period have
been the subject of numerous private and official
inquiries which, since 1939, have been substantially
augmented in the United States by governmental
investigations and judicial proceedings. The pur-
pose of this article is to discuss the bearing of this
extensive body of information, in some of its
aspects, upon international commercial policy,
with particular reference to the proposals concern-
ing resti'ictive business practices set forth in the
Proposals for Expansion of World Trade and.
Employment (Department of State Publication
2-Hl).i
Considered as a whole, the information and an-
alysis now available disclose as of 1939 the cumu-
lative spread of a network of restrictive business
arrangements and practices affecting a substantial
proportion of all international trade in economic
goods, including industrial technology. Individ-
ual fields of production and trade were not, of
course, equally or invariably subjected to such
restrictions, nor ware all arrangements of uniform
durability and effectiveness. Nevertheless, the
significance of this development with reference to
international commercial policy is clear and un-
mistakable : On the eve of the outbreak of the
recent war the cartelization of world trade had
reached proportions sufficient to threaten the in-
ternational economic processes of competition
which underlie the multilateral system of world
trade and which have been significantly respon-
sible for its development in the past several cen-
turies of unrivaled material progress. The United
Nations consequently face today an urgent prob-
lem whose solution is related to the success of
efforts in other fields of economic and monetary
policy; and the relation is clearly one of mutual
interdependence. On the one hand, concerted
action to curb the restrictive business of inter-
national cartels would be largely fruitless in the
absence of complementary measures for reducing
governmentally imposed barriers to trade and for
the establishing of a multilateral system of inter-
national payments. On the other hand, the suc-
cess of such measures depends upon the competitive
character and vitality of the underlying proc-
esses of business and international trade.
Eflfects of International Cartels
International cartels may be characterized, for
purposes of this discussion, as arrangements be-
tween producers situated in two or more countries
for the elimination or suppression of competition.
Firms enter into cartels in order to obtain the ad-
vantages of monopolistic control expected to ac-
crue in the form of higher prices and profits per
unit of sales than would otherwise be realized. In
order to achieve tliis objective, cartels must succeed
in restricting sales to a smaller quantity than
would have prevailed in the absence of an agree-
ment. This result is known in terms of the art as
the "adjustment of supply to demand". More ex-
actly, by concerted control of production and mar-
keting—either or both — supply is "adjusted" to
demand at a non-competitive price.
The forms assumed in practice by cartel arrange-
ments are exceedingly varied, depending from
agreement to agreement upon the characteristics
of each industry within the various producing
and consuming countries at any given time. Typ-
air. Terrill is Assistant Chief of the International Re-
sources Division, Office of International Trade Policy, De-
partment of State.
• Bulletin of Dec. 9, 1945, p. 913.
455
456
DEPARTMENT OF STATE BULLETIN
ically, however, a written agreement sets forth the
various restraints which each party will undertake
as to his producing and marketing activities, and
provides for such ancillary matters as penalties.
In an industry based upon technology subject to
jjatents in various national jurisdictions, it is cus-
tomarj^ to agree upon licenses within given coun-
tries with respect to both existing and future pat-
ente coming under the control of the parties and,
Avhere relevant, to provide for the exchange of
non-patentable or confidential information.
Cartel agreements ai-e frequently reinforced by
international combines which subject firms in dif-
ferent countries to unified control, principally
through stock-ownership by a single concei'n.
Such a concern is generally known as the "parent"
and often takes the form of a holding company.
International combines thus facilitate the negoti-
ation and maintenance of cartel arrangements by
reducing the number of contracting parties neces-
sary to obtain effective control over an industry.
In the revival of autarchic trade practices during
the 1930's, private cartel agreements were also re-
inforced in some countries by govermnental action
to assign compulsory production or export quotas
to firms within their resiJective national jurisdic-
tion, and in some cases to assign import quotas to
foreign concerns. Also, the simultaneous fixing of
official quotas for a given product by two or more
countries, in consultation with their respective in-
dustrial groups, sometimes accomplished the de
facto results of an international cartel without its
de jure organization. .
The practices of international cartels are like-
Avise extremely varied, and the adoption of a num-
ber of interrelated practices is typically required
in cartel agreements. Certain agreements provide
for the explicit fixing of price in some or all
markets of the world, while others seek to accom-
plish this result indirectly by means of production
or exjjort quotas which in turn may be global in
character or may pertain to particular national
markets. The assignment of exclusive market
areas to each of the cartel participants illustrates
still another variant ; by means of such allocations
members are restricted to specified national terri-
tories with the object of insuring to each party
exclusive possession of a given market area. If,
as in some instances, unreserved or non-exclusive
territories coexist, the members may agree on
wliich firm shall act as the price "leader", or they
may agree upon a connnun and exclusive sales
agency or a division of exclusive customers.
The concerted boycott illustrates another type of
restrictive business practice and is employed for
the 2)urpose of coercing "outside" sellers or buy-
ers. In this instance a group of firms in the posi-
tion of buyers or sellers with respect to "outsiders"
refuses, or threatens to refuse, to do business with
the latter unless certain conditions are accepted.
For example, retail dealers have been faced with
boycott by cartel groups unless they refrained
from trading with independent producers seeking
sales outlets. Concerted "dumping" in a given
market is a related practice whose purpose is to
preclude the future competition of outsiders or to
prevent the establishment of new firms.
Concerted action to restrict access to technology
has been required under exclusive arrangements
for the pooling of future as well as existing patents
in the control of a particular group of firms. In
certain instances where the parties possess im-
provement and application patents as well as
"basic" patents, the expiration of the latter is of
no benefit to outside firms if they cannot have ac-
cess on reasonable terms to patents relating to ap-
jjlications and improvements. In general, this
type of restraint extends the combined monopoly
powers of the parties beyond the legal grant of
monopoly inherent in their patents at any given
time. Firms in possession of patents, particularly
those relating to general processes of production,
may also divide or allocate fields of production
through restrictive licensing agreements, each
licensee being arbitrarily limited to a particular
and different use of the process. Such an alloca-
tion of fields of production is not necessarily de-
pendent, of course, upon the existence of patents;
it may be achieved directly by agreement to such
effect, or indirectly by agreed allocation of market
areas or customers having different demand char-
acteristics.
International cartel arrangements may affect I
economic welfare through monopolistic influences
upon production and the distribution of income
and upon the ilow of international trade. The
monopoly consequences of an international cartel
agreement are similar to those induced by restric-
tion on a purely domestic scale. The quantity of
resources, including labor, used in the cartelized
industry tends to be less than it would be under a
non-restrictionist regime, although prices and
MARCH 24, 1946
457
jn-otits per unit of output tend to be correspond-
ingly greater. Resources used in competitive sec-
tors of the economy earn smaller returns than
would otherwise have been the case ; and owing to
collateral effects on the distribution of income, the
volume of savings may be increased with respect
to opportunities for new investment, thus result-
ing in a tendency toward chronic unemployment.
The monopolistic effects of cartels may also ex-
tend to the retardation and smothering of new
techniques of production and innovations of man-
agement or marketing. It is a widely held opin-
ion that the cartelization of an industry dimin-
ishes the incentives of firms to be enterprising and
may, indeed, lead to the deliberate suppression of
technology. The extent to which this proves to be
the case in any given instance is, of course, exceed-
ingly difficult to estimate, particularly over any
short period of time, due to the lack of a suitable
standard of reference.
The existence of political frontiers antl diverse
national economies greatly complicates the monop-
olistic effects of international cartels and intro-
duces additional considerations, mainly with ref-
erence to the terms of trade between national
states. International cartel agreements between
producers situated in predominantly industrial
countiies may influence the terms of trade of such
countries with less industrialized nations to the
detriment of the welfare of the latter. If such
restrictive arrangements are government ally en-
couraged, political relations may likewise deteri-
orate and give rise to retaliatory action. If such
action takes the form of cartelization of the ex-
port products of the less industrialized nations,
the terms of trade of the latter may be restored ;
however, the total volume of world trade will be
diminished, and the supply of international items
entering into the standard of living will be corre-
spondingly diminished.
Restrictive arrangements in a particular indus-
try may also induce the growth of firms produc-
ing identical or substitute commodities in depend-
ent consuming countries. If such expansion is
sufficiently great, the cai'tel arrangement in ques-
tion may ultimately break down with a drastic
decline in price and accompanying demands for
governmental measures to protect the newly cre-
ated productive capacity regardless of compara-
tive costs. Similarly, as a preliminary to the ne-
gotiation or renewal of cartel agreements, pro-
ducers situated in a given country may demand,
or threaten to demand, a protective tariff or other
governmental trade barriers for the purpose of in-
creasing their "bargaining power" by eliminating
their domestic market as an object in the cartel
negotiations. The monopoly effects of interna-
tional cartels are thus closely related to the subject
of trade barriers. /
Although it is perhaps true that international
cartels, through private quota arrangements, have
on occasion forestalled the enactment of govern-
mental import regulations, it should also be noted
that the cartel participants in such cases derive,
at least in part, returns which would otherwise
have accrued to the public treasury in the form of
imjDort duties or proceeds from the sale of import
licenses. Furthermore, if markets are exclusively
allocated under a cartel arrangement, the effect is
tantamount to an absolute prohibition of imports.
A cartel can thus be more drastic in its restrictive
effects than an official quota or tariff and even
when less restrictive will result in a loss of revenue
that would otherwise accrue to the public treasury.
In the case of states which are wholly or mainly
dependent upon foreign sources of .supply an addi-
tional consideration is relevant, namely, the burden
of being arbitrarily denied the right to purchase
from the cheapest seller and thus to obtain the
advantages of competition. This effect of cartel
control is of importance since almost all countries,
because of natural or economic circumstances, are
highly dependent upon certain impoi'ts.
The effect of concerted and inequitable restraints
upon access to new industrial technology has been
less widely noted but is, nevertheless, of impor-
tance. Cartel arrangements in the field of tech-
nologj' may not only retard the giowth and im-
provement of an industry but may also frustrate
the greatest potential use of the growing inter-
national fund of scientific knowledge which pro-
vides the basis for subsequent technological de-
velopments and which is truly a common world
possession. In this connection, however, it should
be emphasized that the development of new in-
dustrial technology is necessarily costly and time
consuming, and frequently entails high risks of
failure on the part of individual firms. The pros-
pect of adequate monetary returns is therefore
essential to sustain this important function of
enterprise in every country. i\ji effective world
system of national patent grants with proper scope
458
DEPARTMENT OF STATE BULLETIN
for cooperation among governments is indispen-
sable to the continued development and wide in-
ternational dissemination of industrial technology.
Considerations of Policy
Certain popular statements which present the
differences of national policies toward interna-
tional cartels in sharp contrasts of black and white
may easily be misleading. In the first place, indi-
vidual governmental policies concerning cartels
have not, with few exceptions, been subject to clear
and definitive expression. General inferences in
this matter are frequently drawn from special sit-
uations prevailing in the late 1930's or from some
particular provision of national legislation that
may not adequately reflect the general body of
national statutes bearing upon the subject. For
example, although a country may have no general
legislation against restraint of trade, it may as in
some states have certain "antitrust" provisions
written into its patent or trade-mark laws. Con-
sequently, it would perhajDs be more accurate to
emphasize the extreme complexity of this legisla-
tive field and to draw attention to the shadings of
emphasis on matters treated in the various national
systems.
Secondly, pre-war attitudes, while of course rele-
vant to post-war policies, are not necessarily de-
terminative in full measure, particularly with ref-
erence to restrictive business practices of an inter-
national character. The national legislation of
most countries, including those which presume the
legality of monopolistic combinations, was, gen-
erally speaking, conceived before the recent growth
of international arrangements and was framed
primarily with reference to domestic market rela-
tions. Since unilateral action, particularly on the
part of smaller states, would have been hopelessly
inadequate to curb restrictive business practices of
an international character, previous legislation
may not adequately reflect the attitude of all coun-
tries under changed circumstances. Given the
prospect of an agreed international standard and
' The late President Roosevelt in a letter to Secretary
of State Hull pointed out the necessity for curbing cartels,
the text of which was printed in Bulletin of Sept. 10,
1&44, p. 254 ; Mr. Hull's reply appeared in the Bxjlletin of
Sept. 17, 1944, p. 292. For statements on the subject by
Assistant Secretary Clayton see Bui.letin of April 8, 1945,
p. 013, May 20, 1945, p. 933. For an address on cartels
by Charles Bunn see BuLLEmN of Oct. 15, 1944, p. 433.
other measures permitting freedom of choice, it is
not unreasonable to suppose that the trading coun-
tries of the world would elect to prevent and
otherwise curb those restrictive business practices
which burden commerce and thwart the operation
of a multilateral system of trade.
Cooperative action among governments to curb
restrictive business practices in international trade
requires mutual recognition of the need for such
action and agreement to take individual and col-
lective measures to meet the need.^ The agree-
ment in question might take either of two alter-
native forms.
One form of agreement would consist of a
specific list of restrictive business practices in in-
ternational trade which the participating govern-
ments would regard as ipso facto violations. This
list would be added to or modified in view of later
experience. The other form would include a simi-
lar list of practices, but each cooperating govern-
ment would consider them only -prima faci-e viola-
tions.
The salient feature of the first form of agree-
ment is that each participating government would
agree in advance: (1) that specifically defined
business practices resulting from or intended by
arrangements between two or more commercial
enterprises engaged in international trade are il-
legal and (2) that each government would, upon
demonstration that such practices existed, take
measures either individually or in concert to re-
move or eliminate them. A list of such practices
might include price fixing, division of markets,
limitation of production or exports, suppression
of technology, boycotting, and other restraints.
The agreement might also provide for an inter-
national agency to facilitate uniform national ac-
tions and otherwise assist member governments,
but such an agency would not necessarily be an
active element in the plan.
If such an agreement were adopted and -
l^romptly implemented by the signatory govern- ^
ments, it would result in a high degree of certainty
and uniformity in prohibiting international re-
strictive business practices. Success would seem
to be remote, however, in getting each participat-
ing government to agree to incorporate into its
existing laws uniform definitions of restrictive
business practices, even if such definitions were
{Continued on page 4l>0)
MARCH 24, 1946
459
German Documents on Sumner Welles Mission, 1940
The Fiihrer
DIRECTIONS FOR THE CONFERENCES WITH MR. SUMNER WELLES
1. In <;;eneral I reqtiest tliat on the German side
in tlie cunferences reserve be maintained and so far
as possible the course of the conversation be left to
^Ir. Sunnier AVelles.
'2. As regards relations between Germany and
tlie United States it may be stated tliat tlae present
situation is not satisfactory to either people. The
Government of the Reich liad on its part given no
cause for the relations between the two countries
developing as tliey had. If the American Govern-
ment, by sending Mr. Sumner Welles to Berlin,'
intended to produce a change in the situation, that
would undoubtedly be in tlie interest of lH)th
l)eoples.
3. The point of view of Germany in regard to
tlie international situation and the war has been
made known to the world by my speeches. On
individual points the following can be stated :
Germany did not declare war on the Western
Powers but they declared war on Germany.
England and France had no just ground for war
against Germany. Just as the United States on
tlie gi-ound of the Monroe Doctrine would sharply
reject any intervention by a European Govern-
ment, for example in Mexican affairs, so Germany
regarded the eastern European area as its sphere of
interest, about which it would negotiate only with
Russia but never with England and France. Ger-
many, after the conclusion of the Polish campaign,
had negotiated with Russia on eastern questions
and had through this unavoidable change in the
situation in the east finally made its European posi-
tion secure. Then at the beginning of October I
once more made a last peace offer to England and
France. Both countries had made the gi-eatest
mistake which they could make. They regarded
this offer as a sign of weakness and rejected it with
scorn.
Germany had accordingly drawn the only pos-
sible conclusion. She accepted the challenge of
England and France.
In the interval, the war aims of England and
France had become more clear. These consisted,
as had now been stated openly, in the destruction
of the German state and the dismembering of the
German people in an even worse Versailles System.
As the result of this course of events Germany
as the state attacked had nothing to say on the sub-
ject of peace. Germany was immovable in her
decision to break once and for all the will to de-
struction wliich now controlled English and
French policy and the force of a population of
eighty million was aimed to that end. Only when
the English and French will to destruction is
broken can a new truly and peaceful Europe be
built. While with unparalleled deception Eng-
land and France proclaimed ever more openly as
their war aim the destruction of Germany and a
new partition of Europe into peoples with and
without rights, Germany even today does not de-
clare for the destruction of the British Empii'e and
of France. Germany sees rather the guaranty for
a consolidation in Europe to lie in satisfying the
vital interests of the great peoples in their own
natural living areas, while there is a place in Eu-
rope both for the small states who have historically
displayed their capacity for existence, as well as
for the great states. Germany considers that this
end can be obtained only through her victory.
4. On economic questions it may be stated that
the English blockade is not of decisive imiDortance
These documents regarding former Under Secretary of
State WeUes' mission to Germany in 1940, secured from
German Government files, are among tlie flr.st of German
official papers wliich the Buu-En'iN is now publishing; others
will appear in later issues. For an article on and excerpts
from a German handbook of propaganda directives, see
BuLLi-.TiN of Feb. 24, 1946, p. 278, Mar. 3, 194ti, p. :^11, and
Jlar. 10. 1946, p. 365.
These documents have been selected and translated by
J. S. Beddie, research assistant. Division of Research and
Publication, Office of I'ublic Affairs, Department of State.
• Bulletin of Mar. 30, 1940, p. 33r^.
460
DEPARTMENT OF STATE BULLETIN
for Germany. Germany can, both in connection
witli its needs for provisions as well as for its needs
of raw materials by means of its own independent
economy and through its trade with the European
states, with Russia, and by way of Russia, with
Jajiau and the larger part of the world, make any
blockade useless. National Socialist Germany is
in no way set against a world economy. Her build-
ing up of an independent economy has been forced
ui^on her througli the economic policies of the
world. Its completion which now approaches, will,
however, put Germany in a position to take part
again as a healthy partner in world economy.
5. A discussion of individual concrete political
questions, as, for example, the question of a future
Polish state, is. if possible, to be avoided. In case
that sort of subject is brought up on the other side,
reply is to be made that such questions are to be
decided by me. It goes without saying that the
subjects always being brought up by England and
France of Austria and the Protectorate of Bo-
hemia and Moravia are to be excluded from any
discussion.
6. Reference can be made to the completely al-
tered political situation of Germany as compared
with 1914. All references are to be avoided, which
on the other side could be construed as indicating
that Germany has any interest at present in the
exploration of possibilities of peace. It is re-
quested rather that Mr. Sumner Welles be not left
in the slightest doubt that Germany is determined
to conclude this war victoriously, and that the
confidence in victory of the German people, united
as never before in their thousand years of history,
and that of their leadership, is unbreakable.
Adolf Hitler
^9 Fehnmry 1940.
MEMORANDUM OF A CONVERSATION BETWEEN FIELD MARSHAL GOERING AND UNDER
SECRETARY OF STATE SUMNER WELLES AT KARIN HALL, MARCH 3, 1940
Sumner Welles began the conversation, just as in
his conferences with the Fiihrer, the Foreign Min-
ister, and the Deputy of the Fiihrer, to which con-
ferences he referred briefly, with almost the same
words as in those conversations concerning the
nature and purpose of his mission in Euro|)e.
President Roosevelt had directed him to undertake
a trip to Italy, Germany, France, and England in
order to make a i-eport about the present situation
in Europe and about any possibilities of bringing
about a firm and lasting peace in Europe. Presi-
de)it Roosevelt had no interest in a temporary or
uncertain condition of peace, but only in permanent
peace which would guarantee permanent security
to all peoples. Sumner Welles emphasized that he
would treat any information given him by Euro-
pean statesmen in strictest confidence and to be
regarded as solely for the information of President
Roosevelt. In conclusion he added that he had
not been empowered to make any proposals or
suggestions.
He referred to his long conversation with the
Duce in Rome, which he described as constructive
and beneficial. Although, as the result of the fore-
mentioned confidential character of his conversa-
tions with the European statesmen, he could give
no details about his conference M'ith the Duce, he
would go so far as to say that in the opinion of the
Duce there still existed the possibility of bringing
about a lasting and firm peace in Europe. It was
the opinion of the American Government that a
war of annihilation could cost not only millions
of human lives, but would also bring about the
destruction of the social order and of the gi'eater
part of the material advantages which civiliza-
tion had accumulated in past ages. For this rea-
son the American Government hoped that there
was still time to find ways and means of insuring a
just political peace on permanent and strong bases.
If there was this possibility, America, according
to the public declaration of President Roosevelt,
would take its full part in all plans which might
be worked out for reduction of armaments consist-
ent M'ith the security requirements of the nations
as well as in all measures for the restoration of
economic life which might likewise be suited to
bring about security and stability of conditions in
that field. It was in this spirit that he had come
to Europe and he w^ould be grateful to learn the
views of the Field Marshal.
Field ^larshal Goering replied tJiat in order to
take a correct position with regard to the ques-
MARCH 24, 1946
461
tions that had been mentioned it was necessary,
first, to go somewhat more deeply, in order to
show how the development from past conditions
had come about.
AVlien National Socialism had come into power
and the original bases of its foreign policy had
been laid down, the Fiihrer, as well as the Field
Marshal himself, had clearly stated the two under-
lying principles which would be emphasized in
German foreign policy: (1) the traditional friend-
ship with Italy, which already existed as a result
of their common world outlook; and (2) the
closest and more intimate collaboration with the
British Empire. This latter principle would be
put into operation as soon as jDOSsible. There
began an actual wooing of England, and as on
later occasions from other sources the opinion was
expressed that England could not be trusted and
that one should act more carefully with respect to
England, the Fiihrer firmly rejected tliis view-
point and indicated tliat the policy in regard to
England must be continued under all circum-
stances. England had great obligations to meet
in the defense of her Empire, while Gernumy in
the continental area of Europe must on her side
i-epresent a stabilizing factor. Everything pos-
sible would be done to make the collaboration with
England a reality. All of the leading personalities
of England, who in the following years frequently
visited Germany, were convinced that it wovdd be
folly and a crime if England and Germany should
be brought once more into war with each other,
that the World War must remain the first and last
warlike conflict between the two nations and that
the interests of the two countries were the same.
The Fiihrer even went so far, in his desire to col-
laborate with England, that he was prepared to
guarantee the existence of the British Empire by
the aid of German arms.
The England of MacDonald and later of Bald-
win was somewhat unreceptive and people there
seemed not to understand the German desire for
rapprochement, raising the objection that there
were binding obligations to France. Thereupon
the Fiihrer declared himself ready to make an
agreement with France as well. It was of course
somewhat bitter and difficult for him to give up
finally any claim to Alsace-LoiTaine in order to
secure an agreement with France and thereby with
England. With respect to France, the only condi-
tion put forwai-d was a satisfactory solution of the
Saar question.
In order to remove difficulties still further, the
Fiihrer made proposals foi* disarmament, which,
as is known, envisaged an army of 200,000 to
300,000 men. At the same time Polish-German
relations were improved, which at the time the
National Socialists came into power were extraor-
dinarily critical.
In connection with the endeavor to secure an
agreement with England, Herr von Ribbentrop
was employed, since he already had the very best
connections with England. In order to carry out
this task which was entrusted to him by the Fiih-
rer, an office of his own was set up which brought
prominent Englishmen to Germany, to assist in
this way the rapprochement of the two countries.
Germany had only limited aims: the consolida-
tion of the Reich, the elimination of the Versailles
Treaty, and her own security. When Ambassador
von Hoesch died. Herr von Ribbentrop was sent as
Ambassador to London with the express task of
improving German-English relationships. He
had already concluded the naval agTeement with
England, in which the Fiihrer had made the great
concession that the strength of the German fleet
should be only 35 percent of that of England.
Only if one knew how very close German sea power
lay to the heart of the Fiilirer and how he had
always had it in mind that Germany would once
again have a strong Navy, could one conceive how
reallj' great the personal sacrifice was, which the
German-English naval agreement represented, for
tlie improvement of German-English relations.
It was true that in England some individuals
had a correct understanding of the situation.
Official England, however, and the people who
molded i^ublic opinion, received these plans for
rapprochement with a negative attitude, and that
at a time when there could have been no aspirations
for iwwer on the part of Germany. The Gernuin
efforts to come to an agreement with England had
all been rejected, and not on reasonable grounds.
That could perhaps have been understood. Also
not in gentlemanly terms, but with scorn and dis-
dain and with insults directed against the leading
German personalities. It had often been hard for
Germany to continue on the friendly course as
resjjects England, and the advisers of the Fiihrer
were often astonished that in spite of everything he
687457—46-
462
DEPARTMENT OF STATE BULLETIN
held fast to his goal of collaboration with England.
Certainly there had been brief periods of disturb-
ance in German-English relationships, but the
Fiihrer had always come back again to his original
policy toward England.
Field Marshal Goering turned then to other
fields of recent history. He referred to the occu-
pation of the Rhineland which represented only
the realization of the primal rights of a people to
exercise complete sovereignty over its entire ter-
ritory. He spoke of Austria, a country which ex-
cept for a few Jews was inhabited entirely by
Germans, which wanted to return to the Reich,
and which as early as 1918 through its popular
assembly had expressed its will to do so, which de-
cision had at that time been overruled by the En-
tente. It was therefore absolutely provocative
when M. Daladier now declared that the Austrian
question would have to be taken up again. It was
just as if one of the states of the United States had,
as a result of an unfortunate war, been detached
from the United States and then reunited and a
foreign politician would declare that the situation
of separation would have to be restored again.
One might just as well talk about the detachment
of Bavaria and Wiirttemberg.
Passing to the Czech question, the Field Marshal
noted that there were two matters involved here :
first, the question of nationality. Through pres-
sure from all sides the Sudeten-German question
had been solved at Munich. A guaranty of the re-
mainder of Czechoslovakia had been considered
there. He, the Field Marshal, had been against
the idea and the Fiihrer rejected it on the ground
that there must first come about an arrangement
between the Czechs and the Slovaks, the Hun-
garians and the Poles, and that additionally, fur-
ther internal developments in Czechoslovakia must
.take place.
One came then to the second point in connection
with Czechoslovakia, the question of security. In
order to understand this properly, Sumner Welles
should cut out a representation of the former
Czechoslovakia on a map and place it touching
part of the boundary of the United States so that
it lay within United States territory. Then he
could understand how great a danger Czechoslo-
vakia in its previous form represented for Ger-
many. Like a spear point it threatened the heart
of Germany, lying only 20 minutes by air from
the capital and from the important centers of
industry and transport arteries. What respon-
sible head of a state could endure such a situation,
esjjecially since this enclave within Germany was
unfriendly to the German Reich? Czechoslovakia
might perhaps be still existing had not this policy
of hostility to Germany pi-evailed, which made it
in the words of the French Air Minister Pierre
Cot into an airei'aft carrier directed against Ger-
mau}'. As long as Czechoslovakia was hostile to
us so long was the security of Germany uncertain.
After Munich the development in Czechoslo-
vakia had been closely observed on the German
side. The Fiihrer had given repeated warnings.
The new Czech President had shown himself to be
too weak. A military clique embittei-ed by the
Munich agreement had called for revenge and the
hostility to Germany had been greater than before
Munich. No reduction had been made in the army,
which represented a considerable threat to Ger-
many, and the economic life of Czechoslovakia
had not been adjusted to the German economic
life, as would have been necessary for satisfactory
collaboration. For the security of the German
nation it was necessary that the situation be made
entirely clear. Thus the Protectorate had been
brought about. This Protectorate of Bohemia and
Moravia would in its internal administration and
in its culture remain completely independent and
would even be permitted to maintain a small army.
Of course this could only be in peacetime, as dur-
ing the war special regulations would prevail.
Wlien France and England lost this important
outpost they were greatly exercised. That was
thoroughly understandable from their policy of
hostility toward Germany. But it was also under-
standable that Germany had taken possession of
this enemy bastion in the middle of her territory.
Passing to the subject of Poland, the Field
Marshal declared that here also Germany had
done everything possible to come to a good under-
standing with that country. Just as Herr von
Ribbentrop had been commissioned to undertake
the rapprochemenf with England, so the Field
Marshal himself had been ordered to undertake
mpprocliement with Poland. He had maintained
the best relationships with numerous Polish per-
sonalities, with Pilsudski, Beck, and others who
liad been his personal guests. On the German side
there had been no objections to the existence of
Poland, but on the contrary, the interest of Ger-
many in maintaining a strong Poland was empha-
MARCH 24, 1946
463
sized. Tlie Poles liad also acknowledged that
Danzig was German, just as Germany acknowl-
edged that Poland had economic interests in Dan-
zig. Therefore, we had believed that the Danzig
(|uestion could be solved best by the return of
Danzig to Germany, with Poland's economic inter-
ests therein not only being preserved, but with
even a free port area there being granted to Po-
land. Additionally there should have been created
also a sort of small corridor consisting of an auto-
mobile highway and a four-tracked railway across
the Polish Corridor to insure connections with
East Prussia. In order to obtain such an agree-
ment, the Fiihrer was ready to give up finallj' all
claim to a great German province in which many
Germans lived, to guarantee the boundary with
Poland, and to conclude a twenty-five year non-
aggression treaty. From his personal knowledge
of Beck and Moscicki, at least these two statesmen
were willing to concede these German demands,
yet the Poles in their entire histoi-y almost always
had come to disaster through self-deception and
their overvaluation of prestige.
At this moment England had stepped in. On
the day after the Munich accord, when the declara-
tion between the Fiihrer and Mr. Chamberlain had
been signed, according to which war should never
again rise between Germany and England, people
in Germany had been very happy. A long-felt
desire of the Fiihrer appeared now to have been
fulfilled. Therefore, in Germany people were
astounded when a short time thereafter Mr. Cham-
berlain, Mr. Eden, Mr. Duff Cooper, and others
proclaimed Munich as a disaster for England and
declared that England must now arm herself
thoroughly so that never again could another
Munich occur. This had in a way represented the
first concealed declaration of war on the part of
England against Gernian}-. Also the Fiihrer had
seen at this moment that only under pressure had
the English declared themselves ready to come to
an understanding at Munich.
Then England came out with the Polish guar-
anty, of which at first Beck had no knowledge and
to the acceptance of which he was more or less
forced. As a result the Polish attitude stiffened,
they became daily more extreme and insulting in
their statements and finally went as far as the
murder and torture of members of the German
minority. We had photographic records of the
outrages committed by Polish bands. The cruelty
evidenced in these documents seemed to him (the
Field Marshal) to put even the Middle Ages in the
shade. This the German nation could not allow.
In such a situation, which deeply affected the
national honor, no compromise was possible. Ac-
tion must be taken against Poland. It must, how-
ever, be stated that from the German side assur-
ances were given to England that this was the sole
problem remaining to be solved and that then, with
England and France, the settlement in connnon of
European problems could be undertaken. Beside,s
the official negotiations, the confidential repre-
sentatives of tiie Field Marshal were active in this
effort up to the last hour before the outbreak of
war, pointing out the folly of a European conflict
in the face of this attitude on the part of Germany.
There followed the declaration of war by the
Western Powers, a one-sided declaration. Ger-
many herself had never declared war. In this con-
nection it should also be noted that the French
Foreign Minister had clearly given the German
Foreign Minister to understand, on the occasion
of the latter's visit to Paris in 1938, tliat France
was no longer interested in eastern questions.
France woidd of her own accord surely not have
entered the war, but England would not let escape
this opportunity to destroy Germany.
A further sure proof that England was the real
inciter of the war apjDears in the fact that Musso-
lini's compromise suggestion, which he despatched
at the last moment to the powers involved, was
accepted by Germany and France. Only England
said "No", and eventually compelled France to
change her position. These were actual facts, an
account the truth of which M. Daladier would
even now have to acknowledge.
After the Polish war had been completed in 18
days, the Fiihrer had still made a final peace offer.
Germany wanted not a single French village or
piece of English territory. Germany offered peace
when German claims had been met, and the Fiihrer
declared himself prepared even yet to go. through
with all the earlier plans for collaboration. In
Germany it was hoped that England would clearly
recognize liow advantageous that sort of an ar-
rangement, which envisaged the collaboration of
the four European great powers, would be. In-
stead, the German peace offer was rejected scorn-
fully and the greatest mistake made which could
be made ; the offer was ascribed to weakness. That
was absolute foolishness. Wlioever knows the
464
DEPARTMENT OF STATE BULLETIN
Fiihrer, knows that his patience and indulgence
are often very great. However, when the limit is
reached, the Fiihrer is seized with an iron deter-
mination and nothing can then swerve him from
his goal. He saw the purpose of England to bring
Germany back to the situation of Versailles, in
other words, to destroy her. In spite of the limited
extent of the formal proposals which might be
projjosed on the part of tlie English, all Germans
were convinced of the English intention to anni-
hilate them. The case was therefore clear. Ger-
many wished peace, but before she would allow
herself to be destroyed by her oi^ponents she would
fight, even though the war might last for ?>0 years.
Sir John Simon's speech of the previous day, and
he recommended a careful reading of it to Mr.
Sumner Welles, was a complete confirmation of
wliat he had said. It was pitiless, presumptuous,
and impudent. "Wliether the war must go on de-
[lended not on Germany, but on her opponents. To
Ward off destruction Germany would fight to the
last man.
Since, however, on the jiart of Germany, these
intentions on the part of her opponents to destroy
her had been known for a considerable period, Ger-
many had made preparations in good time to de-
fend herself, both materially and psychologically.
The moi'ale of the troops was outstanding. They
were aroused by the desire to break the destructive
force of their opponents who held them in dises-
teem. and were convinced that this could only be
brouglit about by a German victory. Before God
and the whole world he could affirm that Germany
had not sought the war. It was forced on her, and
the Field Marshal had himself up to the last mo-
ment done everything possible to avert it. What
could Germany do, when the others wanted to de-
stroy her? "Hitlerism must be destroyed" was
their watchword and since Hitler was identical
with Germany, that meant the destruction of the
Reich.
The English believed that they could readily
attain their goal through the blockade. At that
the Field Marshal could only wish them "Much
success". He was primarily a soldier, but for the
past 31/^ years he had also been busied with eco-
nomic questions. The lack of raw materials from
which Germany suffered, had been countered by the
substitution of other materials or the provision of
large stockpiles. Also the blockade had many
gaps. These preparations had been charged
against Germany as though they were a matter
for reproach. But the factories which had to be
constructed for the Four- Year Plan, which would
perhaps have been unnecessary in a situation of
normal economic relationships on the part of all
countries, were no more than living witnesses to
the ununderstanding attitude of the world in eco-
nomic matters.
Germany had, however, two important raw ma-
terials : iron and coal. In Germany many items
could be made from coal, even butter. Also Ger-
many had an unassailable agricidtural economy.
She had entered the war with a supply of 7%
million tons of grain as a reserve. Added to that
woukl be lier own production and imi^orts from
southeastern Europe. In nocase would starvation
appear, for the bread ration was assured. Many
schools and auditoriums had been filled with gi-ain
in storage and the supplies on hand were equitably
rationed.
Although Germany suffered from a shortage of
fats, the average German got more butter than was
available by I'ationing in wealthy England. The
soldiers and heavy workers got three times the
amount. England had always declared it would
be a long war. This Germany knew and was pre-
pared for it. Whetlier the war was short or long
there would certainly be no revolution in the rear
of the fighting forces.
Summing up, the Field Marshal declared that
it was a great tragedy that the sword was forced
into the hand of the Fiihrer for a battle with that
nation with whom he had done his utmost for
rapprochement and with whom an agreement had
always been considered his gi-eatest aim. Fate —
or England — had willed it otherwise, since for an
agreement two were necessary. Now an out-and-
out blow must be dealt against England's efforts at
hegemony. Even now, though, Germany did not
desire to destroy either England or her Emi^ire.
England must only be shown that she no longer
held supremacy. Germany understood and recog-
nized the world-wide interests of the British Em-
pire, but she would not endure a state of tutelage.
Mr. Sumner Welles replied that he was deeply
impressed by the Field IMarshal's extraordinarily
clear exposition. If the German Government had
the absolute conviction that war was the only
possible way of attaining the security which the
German peoj^le required, then there was nothing
for him to say, excejjt that he would state that he
MARCH 24, 1946
465
had taken full and complete account of the Field
Marshal's views. If, however, on the German side,
it was considered that there was any possibility of
reaching b}' methods of negotiation an enduring
peace and any sort of guaranty of security, then he
might still be able to report to President Roosevelt
with a measure of hopefulness.
Sumner Welles declared that he thoroughly un-
dei'stood the desire of the German people for se-
curity and also saw that such a proud race as the
Germans, if their ojaponents' desire for their an-
nihilation was absolutely certain, would resist with
all their strength. Also he had remarked in other
connections that an enduring peace could only be
built on firm foundations if the German people
were united, contented and happy, and convinced
that they had the same opportunities as the people
of other countries. That was certainly a pre-
requisite for any lasting peace.
He would, speaking with the same frankness as
(he Field Marshal, mention certain difficulties
which the world outside Germany had in judging
Germany's declarations of her intentions. Re-
peatedly from responsible German quarters there
had come statements that certain steps, undertaken
for the unification of the German people or for
other purposes, were the last and that no further
territorial claims remained.
The Fiihrer at Munich had spoken of questions
affecting the vital interests of the Reich. From
the statements of the Field Marshal it had become
somewhat clearer to ]Mr. Welles what was meant
thereby. He would like, however, to ask the Field
Marshal to outline these requirements of life and
death importance still more definitely.
Field Marshal Goering answered with renewed
emphasis on the impossibilitj' of arriving at a peace
by negotiation, that if their opponents did not re-
cede from their aims of annihilation, peace could
only be attained in the present circumstances by
force of arms resulting in victory. This view had
been again confirmed by Simon's speech of the
]n-evious daj'. The requirements of Germany af-
fecting her vital interests were as follows: (1)
Absolute security of the German people united into
the great Reich, so that they would not be forced
into a new war every 20 or 30 years; (.i) Adequate
possibilities of supplying the German economy;
(3) Return of the German colonies (not for mili-
tary purposes) and; (4) Recognition of Germany
as a member of the international community with
full rights.
In the further course of the interview the Field
Marshal added some personal words about German-
American relations. He had always conferred
v\uth prominent Germans who were traveling to
America and told them that in their relations with
leading Amei'icans they should always emphasize
that Germany had nothing against America and
had only the desire to advance trade with her. If
in the United States objection was raised to sev-
eral German methods, it should lie noted that
these methods were suited only to ourselves and
that often things which seemed severe had to be
so in order to have their effect. If Germany pro-
ceeded against the Jews on racial grounds, he
might also refer to experience with racial ques-
tions in America, as a result of which the colored
people were not permitted to ride in the same
vehicles as the whites.
Sumner Welles interjected that this applied to
only a small part of America and that on the ot her
hand there was even a colored Representative in
Congress.
Field Marshal Goering stated further that in
America people had described the Germans as
anti-Christian. But everywhere in Germany
churches were open and divine services held. At-
tacks had only been made on a certain political
party which wanted to make a business out of
religion, but not on religion as such.
Simmer Welles replied that he was very glad
that the matter of German-American relations had
been brought up by the Field Marshal. For many
generations America had maintained with no one
closer, more f riendlj', and more agreeable relations
than with Germany. He wanted to state in all
frankness that tlie question of the treatment of
minorities was a matter of great concern to all
Americans. The Americans were an idealistic
people with a deep humanitarian strain. Bad
treatment of human beings, whether it involved
mistreatment of negroes by the English [.l//.s-.<-
handlung iwn Schwarsen dutch die England er\
or the tilings which were taking place in Germany,
touched the humanitarian feelings of the Ameri-
cans most deeply.
A further cause of unsatisfactory relations be-
tween America and Germany lay in tlie firm belief
on the part of the Americans that international
differences of opinion could be settled by peaceful
means. In the last few years the use of force had
increased, not only by Germany, but in other parts
of the world, so that finally only the American
466
DEPARTMENT OF STATE BULLETIN
hemisphere remained free of war. This situation
of increasing use of force affected every Ameri-
can's feeling of security about his own country
directly and personally. For this reason the mis-
sion of Under Secretary Welles was being followed
in America with unusual interest and people hoped,
although hope had almost disappeared, that a
peaceful solution would yet be found. America
knew that she did not live any longer far removed
from Europe, and she saw that her vital interests
were closely affected by what went on in Europe.
Tf, in any way, in view of what the Field Marshal
had said, the German Government could partici-
pate in a last effort at laying tlie foundations of a
durable peace, then certainly close friendly rela-
tions between America and Germany could also
be reestablished.
Sumner Welles added that, if the foundations
of security and of a just peace could be laid, and
he had always held that this must be attained with
due attention to German requirements, America
was ready to take part in every effort which would
then be needed to find practical ways and means
leading to reduction of armaments and restoration
of freer world trade. It was well known to the
Field Marslial that America had already entered
into negotiations with the neutral states to estab-
lish whether an agreement might be reached on
certain fundamentals for promotion of world
trade. He hoped that the German Govei-nment
would also perhaps agree on these fundamentals.
Of course they could not be observed during the
war, but they were to be recognized as an end to
be achieved after the conclusion of peace. He
again stated in this connection that without sound
world trade no enduring peace could be attained,
and he presented a Memorandum in which briefly
and in general terms these fundamentals, namely,
non-discrimination, most-favored-nation treat-
ment, etc., were set forth.
The Field Marshal, after expressing agreement
with these fundamentals and again emphasizing
that Germany would gladly return to an economic
system with no restrictions, which had only been
adopted by force of circumstances, on the subject
of non-discrimination, referred to the prejudicial
treatment which German imports encountered in
the United States.
Sumner Welles expressed himself as well pleased
over the Field Marshal's attitude toward the Amer-
ican economic proposals and declared that discrim-
ination against German goods in America was con-
nected with a general policy of autarchy in Amei--
ican tariff legislation. He asked whether the Field
Marshal or other leading German personality
might possibly in a public statement express agree-
ment with the fundamentals set forth in the Amer-
ican INIemorandum and was most pleased when the
Field Marshal agreed that this would be done.
Sumner Welles declared, in conclusion, that he
left the Field Marshal with the hope that a way
could still be found to avoid the tragedy of a war
of annihilation. He stated that he would again
visit the Duce and that about March 26 he would
report to President Roosevelt on his impressions
received in Europe. He would welcome it if these
impressions were of such a sort as to leave still
some hope of peace.
Sumner Welles stated that during his European
trip or after his return to America he might wish
to send certain information to the Field Marshal,
and he proposed such information should be for-
warded through Mr. Kirk. To this the Field
Marshal agreed.
In conclusion the Field Marshal declared that he
was glad that Mr. Sumner Welles, as a neutral,
calm, and clear-thinking observer, had come to
Germany, in order to see the situation as it actually
was. The Field Marshal placed great value on
such direct contacts of leading personalities. I
Sumner Welles had seen that the war aim of
Germany was peace. If, as he regretfully could
not believe, the will to annihilation on the part of
Germany's enemies should be given up, peace could I
be made quickly. But Sumner Welles would have '
a difficult time on this matter with Germany's
enemies. In any case he had undertaken a task
which was one of the greatest and noblest which
could be given a man, and if his mission were a
success, that would be a wonderful reward for all
his efforts.
Mr. Sumner Welles thanked the Field Marshal
for his words and declared that he was deeply
impressed by what he had learned in their confer-
ence. A man-to-man and heart-to-heart conversa-
tion of this sort was much more liable to remove
the difficulties than the efforts of the all too numer-
ous fourth- or fifth-rate personalities, who in the
past hail undertaken this without success.
After a tour of Karin Hall the conference came
to an end, having lasted almost three hours.
T> I lie 1 inin ScHMIDT
Berlin, 4 March 19J,0
MARCH 24, 1946
467
Composition of Organs, Commissions, and
Committees of the United Nations
Notes prepared by DENYS P. MYERS
THE work of the United Nations proceeds
tliroiigh the principal organs established by
article 7 of the Charter. The structure of each
organ is further set forth in separate chapters of
the Charter, supplemented in the case of the In-
ternational Court of Justice by the Statute and in
all cases by rules of procedure, appropriate re-
ports, and resolutions, and eventually by formal
agreements in certain casesr In the subjoined
list the basis for the constitution of the entities
noticed is given.
The composition of each body is of fundamental
importance. According to the nature of the work
assigned, they may be composed of personnel fall-
ing into several categories:
1. ]\Iember states represented, permanently or
temporarily, by particular agents of their gov-
ernments;
•2. Officials of governments (a) designated by
their own governments or (b) appointed in virtue
of their national official and/or expert qualifica-
tions;
3. Persons of expert qualifications appointed or
elected for their expert capacity.
In setting up the lists of members of the bodies
these categories have been indicated by variations
as follows :
1. Names of states with names of incumbents
in parentheses;
2 (a) Names of persons with names of states
in parentheses ;
2 (h) and 3. Names of persons identified by
nationality adjectives.
I. General Assembly
Charter, chapter IV, articles 9-22 ; Provisional Rules of
Procedure.
In being only during a session.
First Session : First Part, London, January 10-
February 14, 1946; Second Part, New York, Sep-
tember 3- , 1946.
Delegations (.5 representatives) of each Member
of the United Nations; 5 alternate representatives,
advisers, technical advisers and experts.
A. Procedur.\l Committees
1. General Committee
Provisional Rules of Procedure, rules 32-3.5.
Delegates of 14 Members, presided over by Presi-
dent of the General Assembly: comprising the
seven Vice Presidents and the Chairmen of the six
Main Committees.
2. Credentials Committee
Provisional Rules of Procedure, rules 2.3-l!4.
Nine Delegates of Members elected and ap-
pointed by each se.ssion on the proposal of the
President.
B. Main Committees
Provisional Rules of Procedure, i-ules 91-103.
One Delegate of each Member.
The six Main Committees (organized at each
session ) are :
1. Political and Security Committee (including
the regulation of armaments) ;
2. Economic and Financial Committee;
3. Social, Humanitarian and Cultural Com-
mittee;
4. Trusteeship Committee;
5. Administrative and Budgetary Committee;
6. Legal Committee.
Mr. Myers is an officer in the Division of International
Organization .\ft'airs. Office of Special Political Affairs,
Department of State.
468
DEPARTMENT OF STATE BULLETIN
C. Standing Committees
1. Advisory Commitfee for Administrative and
Budgetary Questions
I'rovisional Rules of Procedure, rules 37-39, and rule J.
Nine persons of different nationality, to be
elected at the Second Part of the First Session of
the General Assembly for terms corresponding to
three financial years, serving by annual rotation.
2. Committee on Contrihuiions
Provisional Rules of Procedure, rules 40—12.
Ten experts of different nationality elected Feb-
ruary 13, 1946 by the General Assembly for stag-
gered terms.
One-Year Term
Paul H. Appleby (American)
Chia Chao-ting (Chinese)
Pavle Lukin (Yugoslav)
Two-Year Term
M. Baumont (French)
Sir Cecil Kisch (British)
Nedim el-Pachachi (Iraqi)
Three-Year Term
J. P. Bridgen (Australian)
Seymour Jacklin (South African)
Gustavo Martinez Cabanas (Mexican)
Nicolai V. Orlov (Soviet)
D. Specifically Constituted
1. Commission on Atomic Energy
?et up by resolution of the General Assembly ado|itod
January 24. 1946 ; Rules of Procedure to be approved by tbe
Security Council
Meeting, New York, 19-16.
The coimnission is to make specific proposals
under its terms of reference and submit its reports
to the Security Council, which in appropriate
cases will transmit them to the General Assembly
and the Members of the United Nations.
Consists of one representative of each Member
of the United Nations represented on the Security
Council, and of Canada. Appointments of the
regular rei)resentatives have not yet been made.
Australia
Brazil
Canada
China
Egj'pt
France
Mexico
Netlierlands
Poland
Union of Soviet Social-
ist Republics
United Kingdom (Sir
Alexander Cadogan ;
alternate. Sir James
Chadwick)
United States (Bernard
M. Baruch)
2. Committee on UNREA
Established by resolution of the General Assembly
adopted February 1, 1946.
Meeting, London, February 14, 1046; Atlantic
City, March 25- 1946.
Consists of representatives of 11 Members of the
United Nations named in the resolution.
Canada
China
Dominican Republic
France
Greece
New Zealand
Norway
Poland
Union of Soviet Social-
ist Republics
United Kingdom
United States
3. Headquarters Commission
Established by resolution of the General Assembly
adopted February 14, 1946.
Consists of representatives of 9 Members of the
United Nations named in the resolution.
Australia
China
France
Iraq
Netherlands
United Kingdom
Union of Soviet Social-
ist Republics
Uruguay
Yugoslavia
3-«. I'lanning Commission of Experts
Appointment to be considered at Second Part of
Fii*st Session according to I'esolution of the Gen-
eral Assembly adopted February 14, 1946.
I-A. Officers of First Part of First Session of
General Assembly
President: Paul Henri Spaak (Belgium)
Vice Presidents: Chief Delegates (or alternates)
of—
China (Wang Shili-cliieh)
France (Georges Bidault)
Union of South Africa (Heaton
Nicholls)
MARCH 24, 1946
469
Union of Soviet Socialist Republics
(Andrei Y. Vyshinsky)
United Kingdom (Clement R. Attlee)
United States (James F. Byrnes)
Venezuela (Roberto Picon Lares)
A. Pkocedural Committees
1. General Committee
The President
The seven Vice Presidents
The Chairman of the six main Committees :
Dmitry Z. Manuilsky (Ulcrainian
S.S.R.)
Waclaw Konderski (Poland)
Peter Fraser (New Zealand)
Roberto E. MacEachen (Uruguay)
Faris al-Khouri (Syria)
Roberto Jimenez (Panama)
2. Credentials Committee
Denmark (Gustav Rasnuissen), Chair-
man
Byelorussian S. S. R. (Kuzma V.
Kiselev)
China (Foo Ping-sheung)
France (Jean de la Grand ville)
Haiti (Leon Laleau)
Paraguay (Andres Aguilera)
Philippine Commonwealth (Pedro
Lopez)
Saudi Arabia (Sayed Jamil Daoud)
Turkey (Sevket Fuacl Kececi)
B. Main Committees
Officers listed ; each Member assigned a Delegate.
1. Political and Secw^ity Committee
Chairman, Dmitry Z. Manuilsky (Ukrainian
S. S. R.) ; vice chairman, Joseph Bech (Luxem-
bourg) ; rapporteur, Homero Viteri Lnf route
(Ecuador).
2. Economic and Financial Committee
Chairman, Waclaw Konderski (Poland) ; vice
chairman, Pedro Lopez (Philippines) ; rap-
porteur, Eduardo del Portillo (Bolivia).
3. Social, Humanitarian and Cultural Com-
mittee
Chairman, Peter Fraser (New Zealand) ; vice
chairman, Fernando Soto Harrison (Costa Rica) ;
rapporteur, Frieda Dalen (Norway).
687457 — 46 3
4. Tnisteeship Committee
Chairman, Roberto E. MacEachen (Uruguay) ;
vice chairman, Blatta Ephrem Tewelde Medhen
(Ethiopia) ; rapporteur, Ivan Kerno (Czecho-
slovakia).
5. Administrative and Budgetary C ommittee
Chairman, Faris al-ICliouri (Syria) ; vice chair-
man, Ales Bebler (Yugoslavia) ; rapporteur,
Thanassis Aghnides (Greece).
6. Legal C ommittee
Chairman, Roberto Jimenez (Panama) ; vice
chairman, Per Federspiel (Denmark) ; rapporteur,
John Erskine Read (Canada).
C. Standing Committees
The Committee on Contributions (C (2)) was
established February 13, 1946.
D. Ad' hoc Committees
1. Permanent Headquarters Committee
Chairman, Eduardo Zuleta Angel (Colombia) ;
vice chairman, L. Dana Wilgress (Canada) ; rap-
Ijorteur, NasroUah Entezam (Iran).
2. League of Nations Committee
Chairman, Erik Andreas Colban (Norway) ;
vice chairman. Sheik Hafiz Wahba (Saudi
Arabia) ; rapporteur, H. T. Andrews (South
Africa).
II. Security Council
Ch.Ti-ter, chapter V, articles 23-32; Provisional Rules of
Procedure.
Organized so as to be able to function contin-
uously.
In session, London, January 17-February 16,
1946; New York, March 25- , 1946.
Eleven Members, five — China, France, the Union
of Soviet Socialist Republics, the United Kingdom,
and the United States — of which are permanent,
and six of which are elected by the General Assem-
bly for a normal term of two years. Election on
January 12, 1946 allocated three Members to a one-
year term and three to a two-year term.
Representatives present at the first and certain
other meetings :
Members
Permanent Members
China (V. K. Wellington Koo; Quo Tai-chi^)
' Designated by the Member as tlie permanent incumbent.
470
DEPARTMENT OF STATE BULLETIN
PVance (Vincent Auriol; Georges Bidault)
Soviet Union (Andrei Y. Vyshinsky; Andrei A.
Gromyko)
United Kingdom (Ernest Bevin; Sir Alexander
Cadogan ^)
United States (Edward R. Stettinius, Jr.=)
One- Year Term
Egypt (Abdel Haniid Badawi Pasha; Mamdoiih
Riaz)
ilexico (Alfonso de Kosenzweig Diaz; Luis Pa-
dilla Nervo, Gustavo Martinez Cabanas)
Netherlands (Eelco N. van Kleffens')
Two- Year Term
Australia (Norman John Oswald Makin)
Brazil (Cyro de P^eitas Valle; Pedro Leao Vel-
loso Netto')
Poland (Zygmunt Modzelewski)
Ad hoc Participants at Certain Meetings
According to article 81 of the Charter, any
Member which is not a member of the Security
Council may participate, without vote, in the
discussion of questions which the Security Council
finds specially affect the interests of that Memlier.
The following participated in London meetings :
Greece (Thanassis Aghnides)
Lebanon ( Hamid Bey Frangie)
Syria (Faris al-Khoury)
Ukrainian S. S. R. (Dmitry Z. Manuilsky)
Rotation of Presidency
The i^residency of tlie Security Council rotates
monthly in the English alphabetical order of the
names of Members.
1. Australia 7. Netherlands
2. Brazil 8. Poland
3. China 9. Union of Soviet
4. Egypt Socialist Republics
5. France 10. LTnited Kingdom
6. Mexico 11. United States
'Designated by the Member as the permanent incumbent.
^Aiopoiiiteil, in virtue of the llnUed Nations Participation
Act of 1945 ( I'ublic Law 264, 79th Cong., 1st sess. ) , by the
President, by and with the advice and consent of the Senate
as the "representative of the United States at the seat of
the United Nations" with the rank and status of envoy
extraoi'dinary and jimliassador pU'uipotentiary. IIt> repre-
sents the United Slates in tlie Security Council and per-
foi'nis sneh other functions in connection with the ijartici-
pation of tlie United Stales in tlie United Nations as the
President may fnim time t<i time direct.
COMJIITTEE OF Exi'EKTS ON RuLES OF PROCEDURE
Informally constituted at first meeting of the Council
on January 17, 1946.
Consists of one representative of each Member
of the United Nations represented on the Security
Council.
ll-A. Military Staff Committee
('liaiter, article 47; Provisional Rules of Procedure.
Organized so as to be able to function at all times
in accordance with directives of the Security
Council and with approved plans.
In session, London, February 4-14, 194G; New
York, March 25- , 1946.
Consists of the Chiefs of Staff of China, France,
Union of Soviet S.ocialist Republics, the United
Kingdom, and tlie United States, or their repre-
sentatives (one officci' each from the land, sea, and
air forces) wlio sit as members in the absence of
their Chiefs of Staff. Representatives of Mem-
bers of the United Nations who participate in a
meeting to which they are specifically invited are
not considered as members of the Military Staff
Committee'. Subcommittees have the same com-
position.
The chairmanship rotates on a monthly basis
among the five national delegations in the English
alphabetical order of the names of the countries.
Attendance at first meeting:
Ohhir.se (Chiefs of Staff, General Shang Chen) :
Lt. Gen. Kwei Yun-chin
Capt. Chow Ying-tsung
Col. Huang Pun-young
French (Chiefs of Staff, titular) :
Colonel d'Esnevai
Vice Admiral R. Fennrd
Lt. CoL P. Stehlin
Soviet (Chiefs of Staff, titular) :
Lt. Gen. Aleksandr F. Vasiliev
Vice Admiral Valentin L. Bogdenko
Maj. Gen. Andrei R. Sharapov
/i/vV;.v/( (Chiefs of Staff, titular) :
Lt. (ren. Sir Edwin L. Morris
Admiral Sir Henry Moore
Air Chief Sir Guy Garrod
American (Chiefs of Staff, titular) :
Lt. Gen. Matthew B. Ridgway
Admiral Richmond K. Turner
General George C. Kenney
MARCH 24, 1946
471
III. Economic and Social Council
Charier, cluipter X, articles (il-72; Rules of I'rocedure,
ailoi3ted by the Council February 16, 194(1.
Holds at least three sessions each year.
First session, London, January 23-February 18,
1946 ; second session. New York, May 25- , 1946.
Consists of 18 Members elected by the General
Assembly, each having one representative on the
Council. Members are elected for terms of 3 years,
the first Council being allocated by groups of six
to 1-, 2- and 3-year terms.
The President and Vice Presidents hold office
until their successors are elected at the first meet-
ing following the next regular session of the Gen-
eral Assembly, that is, when the Council is organ-
ized with a newly elected group of six Members.
In the following list the representatives desig-
nated by INIembers at the first meeting of the first
session are eiven.
Members
One-Year Term
Colombia (Carlos Lleras Restrepo), Vice Presi-
dent
Greece (Kyriakos Varvaressos)
Lebanon (Yussef Bey Salem)
Ukrainian S. S. R. (Vastly A. Tarasenko)
United States (John G. Winant^)
Yugoslavia (Dr. Andtija Stampar), Vice Presi-
dent
Two- Year Term
Cuba (Ramiio Gueira)
Czechoslovakia (Jan Masaryk)
India (Sir Ramaswami Mudaliar), President
Norway (Finn Moe)
Union of Soviet Socialist Republics (Vasily A.
Sergeev)
United Kingdom (Philip J. Noel-Baker)
Three- Year Term
Belgium (Fernand Dehousse)
Canada (Paul Martin)
Chile (German Vergara)
China (P. C. Chang)
France (Josej)h Paul-Boncour)
Peru (Alberto Area Parro)
A. Committees or the Council
1. Negot'taHng Committee on Specialized
Agencies
Constituted February IS, 1946 under resolution of the
Council adopted February 11, 1946 to define the terms on
which specialized agencies shall be brought into relation-
ship with the United Nations in accurihince willi articles
57 and 63 of the Charter.
First meeting, London, February 19, 1946 ; next
sessitm, New York, May 24- , 1946.
Consists of 12 members of the Council, including
the President.
President of the Coun- Czechoslovakia
cil (Sir Ramaswami France
Mudaliar) Norway
Belgium Union of Soviet Social-
Canada ist Republics
Chile LTnited Kingdom
China United States
Colombia
2. Committee on Non-Governmental Or-gvjmza-
tions
Constituted February IS, 1946 by decision of the Council
taken February 7, 194() to consider applications of certain
non-governmental organizations for consultative status
and to study the general question of defining the "suitable
arrangements" to be made in fulfilment of article 71 of the
Charter.
First meeting, London, Febnuiry 20. 1946; next
session. New York, May 20- , 1946.
Consists of 12 members of the Council, including
tlie President.
President of the Coun- Peru
cil (Sir Ramaswami Ukrainian S. S. R.
Mudaliar) Union of Soviet Social-
China ist Republics
Cuba United Kingdom
France United States
Greece Yugoslavia
Lebanon
'Sec. 2 (d) of the United Nations Participation Act of
194.5 (Public Law 264, 79th Cong., 1st sess.) stipulates that
tlie representative of the United States in the Economic
and Social Council shall be appointed by the President by
and with the advice and con.sent of the Senate. .\ny officer
of the United States, however, may be designated to act
without compensation in the absence of the regular rep-
resentative or in lieu of the regular representative for a
specified subject at a specified meeting. The regular rep-
resentative is not yet appointed.
472
DEPARTMENT OF STATE BULLETIN
B. COORDIN.VTION CoMMISSIOX
To be constituted at second session of the Coun-
cil to carry out the duties described in the report
of tlie Prei^aratory Commission, Chapter III, sec-
tion V, paragraplis 12-14.
C. Committees Set Up by the Council
1. Preparatory Committee for the International
Conference on Trade and Emyloyment.
Coustltuted February 18, 1946 as a result of proposal
put on the agenda of the Council and reported as a reso-
lution adopted February 18, 194<i.
First session, London, April 8- , 1946.
Consists of representatives of 17 governments
and one customs miion.
Australia Lebanon
Belgium-Luxembourg Netherlands
Brazil New Zealand
Canada Norway
Chile South Africa
China Union of Soviet Socialist
Cuba Republics
Czechoslovakia United Kingdom
France United States
Lidia
2. Special Commit fee on Refugees and Dis-
placed Persons
Constituted February 18, 1046 by the Council as a result
of proposal put on the agenda of the General Assembly and
adopted by it February 12, 1946.
First session, London, April 8- , 1946.
Consists of representatives of 20 Members.
Australia Netherlands
Belgium New Zealand
Brazil Peru
Byelorussian S. S. R. Poland
Canada Ukrainian S. S. R.
China Union of Soviet Socialist
Colombia Republics
Czechoslovakia United Kingdom
Dominican Republic United States
France Yugoslavia
Lebanon
3. Technical Preparatory Convmittee for Health
Conference
Constituted by Economic and Social Council, Febi'uary
18, 1946.
Session at Paris, March 18- , 1946.
Consists of 16 technical representatives of gov-
ernments—
Dr. Gregorio Bermann (Argentina)
Dr. Rene Sand (Belgium)
Dr. Gerald H. de Paula Souza (Brazil)
Maj. Gen. G. B. Chisholm (Canada)
Dr. P. Z. King; alternate Sze-ming Sze (China)
Dr. Josef Cancik (Czechoslovakia)
Dr. Aly Tewfik Shousha Pasha (Egypt)
Dr. A. Cavaillon ; alternate Dr. Xavier Leclainche
(France)
Dr. Kopanaris (Greece)
Major C. Mani; alternate Dr. Cliuni Lai Katial
(India)
Dr. Manuel Martinez Baez (Mexico)
Dr. Karl Evang (Norway)
Dr. Martin Kacprzak (Poland)
Sir Wilson Jameson; alternate Dr. Melville Mac-
Kenzie (LTnited Kingdom)
Dr. Thonms S. Parran: alternate Dr. James A.
Doull ( United States)
Di'. Andi'ija Stampar (Yugoslavia)
In a consultative capacity representatives of —
Pan American Sanitary Bureau
L'Office International d'Hygiene Publique
League of Nations Health Organization
United Nations Relief and Rehabilitation Admin-
istration
\\\-A. Commissions Set up by the Council
Charter, article 68.
First meetings, New York, April 29- , 1946.
The Preparatory Commission in its Report
recommended that the Economic and Social Coun-
cil establish certain conunissions and formulated
statements concerning their functions in Chapter
III, Sec. 1-A, paragraplis 4 and 5, and Sec. 4,
paragraphs 14-35.
The Economic and Social Council followed the
recommendations at its first session for the most
l>art, but M-as not sure enough of their ultimate
scope to determine the final composition of the
commissions. It accordingly on February 18, 1946
appointed "nuclear" conunissions consisting of
qualified persons named for each commission by
the members of the Coimcil itself, the appointees
to sit until March 31, 1947.
MARCH 24, 1946
A. Commission on Human Eights
Appointments as of February 18, 1946.
Consists of 9 persons.
Paal Berg (Norweaian)
Rene Cassin (French)
Fernand Dehousse (Belgian)
K. C. Neogi (Indian)
Mrs. Eleanor Roosevelt (American)
Victor Paul Haya de la Torre (Peruvian)
JohnC. H.Wu (Chinese)
Tlie members of the Council repiv-
-_. renting (he Uinoii of Soviet Socialist
Kepublics and Yugoslavia are en-
titled to send names to the Secretary-
General by March .31, 1940.
Suhcommission on Women
Appointments as of February 18, 1946.
Consists of 12 persons.
Mrs. Bodil Begtrnp (Danish)
Miss Minerva Bernardino (Dominican)
Miss Angela Jurdak (Lebanese)
Rani (Lady) Arut Kaur (Indian)
Seiloreita Gabriela Mistral, i.e. Lucila Godoy de
Alcayaga (Chilean)
Mrs. Pierre Vienot (French)
Miss Wu Yi-fang (Chinese)
The members of the Council rejjre-
sentiiig I'oland and Union of Soviet
Socialist Republics are entitled to
.send names to the Secretary-General
1^^, March 31, 1946.
Three members of the Conunission
<in Human Rights, ex officio, to be
named by March 31, 194(1.
B. Economic and Employ.ment Commission
Appointments as of February 18, 1946.
Consists of 9 persons.
Luis Angel Arango (Colombian)
Franklin L. Ho (Chinese)
Alexander Kunosi (Czech)
Fernand van Langenhove (Belgian)
Alexander Loveday (British)
Isador Lubin (American)
Miss R. Zafiriou (Greek)
The members of the Council repre-
senting Canada and Union of Soviet
Socialist Republics are entitled to
send names to the Secretary-General
^^ March 31. 1946.
473
C. Temporary Social Commission
Appointments as of February 18, 1946.
Consists of 9 pei-sons.
Sidney W. Harris (British)
Henri Pierre Louis Leopold Hauck (French)
P'rantisek Kraus (Czech)
Gerardo Molina (Colombian)
Manuel Seoane (Peruvian)
Xenophon Zolotas (Greek)
The members of the Council repre-
senting Yugoslavia, Cuba, and
Ukrainian S. S. R. are entitled to
send names to the Secretary-Gen-
eral by March 31, 1046.
D. Statistical Commission
Appointments as of February 18, 1946.
(^onsists of 9 persons.
H. Camjiion (British)
G. Jahn (Norwegian)
Mr. Mahalanobis (Indian)
Stuart W. Rice (American) ,
Professor Sauvy (French)
Senhor Texeira Freitas (Brazil)
The members of the Council repre-
senting China, Ukrainian S. S. R.,
and Union of Soviet Socialist Re-
publics are entitled to send names
to the Secretary-General by March
31, 1946.
E. Commission on Narcotic Drugs
Constituted February IS, 1946.
Consists of representatives of 1.5 Members of the
United Nations which are important producing
or manufacturing countries or countries in which
illicit traffic in drugs is a serious problem. Repi-e-
sentatives, who have not been designated, serve for
terms of three years.
Canada
Peru
China
Poland
Egypt
Turkey
France
Union of Soviet Socialist
India
Republics
Iran
United Kingdom
Mexico
United States of America
Netherlands
Yugoslavia
474
F. Tempokary Til\nsport and Communications
Commission
Appointments as of February 18, 1946.
Consists of 9 persons —
George Pierce Baker (American)
Ing. Baracelv-Juquier (Czech)
Sir Gurunath Bewooi- (Indian)
M. Felepi (French)
Leif Hoegh (Norwegian)
Sir H. Osborne Mance (British)
Tlie members of the Council repre-
senting Cliile, China, and Union of
Soviet Socialist Republics are en-
titled to send names to the Secre-
tiu-.v -General by March 31. 1946.
G. DEMOGRAriiic Commission
To be constituted at second session of the CounciL
II. Fiscal Commission
To be constituted at second session of the Council.
IV. Trusteeship Council
Charter, chaptHr.s XII and XIII. articles 75-91.
Not yet constituted.
Composition according to article 86 will be :
A. Members administering trust territories;
B. China, France, Union of Soviet Socialist
Republics, United Kingdom, United States, if not
repi-esented as administi-ators of trust territories ;
C. "As many other Members elected for 3-year
terms by the General Assembly as may be neces-
sary" to equal the Members of the United Nations
included in categories A and B.
V. International Court of Justice
Charter, chapter XIV. articles 92-fl6 ; Statute of the
International Court of .Justice, chapter I. articles 2-33.
Opening session, The Hague, April 3- , 1946.
Members of the United Nations (and other states
if admitted by the General Assembly) are parties
to the Statute; only the judges are "members of
the Court-'.
Candidates of specified personal qualifications
selected by national groups of each party to the
Statute are balloted upon simultaneously by the
DEPARTMENT OF STATE BULLETIN
General Assembly and Security Coimcil. Concur-
rent absolute majorities of both organs determine
the election of 15 candidates. Balloting at London
occurred on February 6, 1946 and the completion
of the Court was announced to the General Assem-
bly on February 9. The 15 members of the Court
are elected for a normal nine-year term, with a
renewal of one third every three years. The allo-
cation of members to terms was in 1946 effected by
a drawing of lots by the Secretary-General in the
General Assembly on February 9.
A. Members of the Court
Three- Year Term
Abdel Hamid Budawi Pasha (Egyptian)
Hsu Mo (Chinese)
-John Erskine Read (Canadian)
Bohdan Winiarski (Pole)
Milovan Zoricic (Yugoslav)
Six-Year Term
Isidro Fabela Alfaro (Mexican)
Green Haywood Hackworth (American)
Helge Klaestad (Norwegian)
Sergei Borisovich Krylov (Soviet)
Charles de Visscher (Belgian)
Nine-Year Term
Alejandro Alvarez (Chilean)
Jose Philadelpho de Barros e Azevedo (Brazilian )
Jules Basdevant (French)
Jo.se Gustavo Guerrero (Salvadoran)
Sir Arnold Duncan McNair (British)
B. Ad hoc Members or the Court
Article 31, paragraph 2, of the Statute provides :
"If the Court includes upon the Bench a judge of
the nationality of one of the parties, any other
party may choose a person to sit as judge".
VI. The Secretariat
■ Charter, chapter XV, articles 97-101; Repoi-t of the
Fifth Committee on the Secretariat adopted February 12,
1946, which incorporates by reference the description of
organization given in Report of the Preparatory Commis-
sion, chapter VIII, section 2, paragraphs 22-40, and Pro-
visional Staff Uegulations; eventually a convention on
privileges and innniniities and Staff Uegulations.
MARCH 24, 1946
475
A. Secretary-General
Charter, articles 97-ltTO.
Appointed by the General Assembly February
1, 1040 upon the i(>eoniiiiendation of the Security
Council; installed February 3, 1946.
Trygve Lie (Norwegian)
B. Administrative Organization
Report of the Fifth Committee adopted by the General
Assembly February 12, 1946.
Tlie Secretary-General is authorized to appoint
eight Assistant Secretaries-General.
The principal units of the Secretariat are —
a. Department of Security Council Affairs
b. Department of Economic Affairs
e. Department of Social Affairs
d. Department for Trusteeship and Informa-
tion from Non-Self-Governing Territories
e. Department of Public Information
/. Legal Department
ff. Conference and General Services
fi. Administrative and Financial Services
C. Assistance to the Secretary-General,
J. Special Committee to Assist the Secretary-
General in Negotiating icith the Host State
Authorized by the General Assembly in adopting Report
of the Sixth Committee, Feljruary 13, 1946.
Consists of qualified representatives of 10 Mem-
bers of the United Nations.
Australia
Belgium
Bolivia
China
Cuba
Egypt
France
Poland
Union of Soviet Socialist
Republics
United Kingdom
2. Negotiating Comtthittee to Assist the Secre-
tary-General with regard to Transfer of League
Assets
E.stabll.shed by resolution of the General Assembly
February 12, 1946.
Consists of 8 representatives of Members of
the United Nations.
Union of Soviet Socialist
Republics
United Kingdom
United States
Chile
China
France
Poland
Soutli Africa
D. Supplementary Bodies
1. International Civil Service Commission
Report of the Fifth Committee adopted by the General
Assembly February 12, 1946.
To be established by the Secretary-General
after consultation with the heads of the specialized
agencies brought into relationship with the United
Nations.
2. Advisory Group of Experts
Report of the Fifth Committee on Budgetary and Finan-
cial Arrangements adopted by the General Assembly
February 12, 1946.
Api:)ointment by Secretary-General recom-
mended to perform functions suggested in Report
of the Preparatory Commission, Chapter IX,
Sec. 2, pars. 23-2G, in continuation of a group
which served the Executive Committee and Pre-
paratory Commission. It would act only until the
appointment by tlie General Assembly of its
Standing Committee, the Advisory Committee for
Administrative and Budgetary Que.stions.
3. Technical Advisory Committee on Infor-
mation.
Consideration of setting up such an expert com-
mittee was recommended in the Report of the
Fifth Committee adopted by tlie General Assembly
on February 12. 1946.
International Organizations and Conferences
Calendar of Meetings
Council of Foreign Ministers : Meeting of Deputies London
Far Eastern Commission Washington
North Atlantic Route Service Conference Dublin
Anglo-American Conunittee of Inquiry Jerusalem
International Jlonelar.v Fund and the International Bank Wilmington Island, Ga.
for Reconstruction and Development : Boards of
Governors
Fourth Session of the UNRRA Council Atlantic City
Preliminary Meeting of Conference on Health Organization Paris
West Indian Conference St. Thomas, Virgin
Lslands (U.S.)
Ninth International Conference of the International Geneva
Bureau of Education
Third Conference of American States Members of the Mexico, D. F.
International Labor Organization
Fifth Pan American Railway Congress Montevideo
The United Nations: New York
Security Council
Security Council — Committee of Exi>erts London
Military Staff Committee New York
Special Committee on Refugfcs and Displaced Persons London
Economic and Social ('ouncil : Second Session New York
January 18 (continuing in
session)
B'ebruary 26 (continuing in
session )
March 4 (continuing in
session )
Hearings opened on about
March 6
March 8 (continuing in
session )
March 15 (continuing in
session )
March l.'i (continuing in
session)
February 21-March 12
March -1-March 13
April 1
April 5
March 25
March 15 (continuing in
session)
March 25
April 8
May 25
Activities and Developments
Fourth Session of the Council of the United
Nations Relief and Rehabilitation Adminis-
tration. The Fir.st Council Session was held at
Atlantic City in November and December of 1943,
the Second Session at Montreal in September 1944,
and the Third Session at London in August 1945.
The composition of the U. S. Delegation is as follows:
Council Mt'inher
William L. Clayton, Assistant Secretary of State
First Alternate
C. Tyler Wood, Special Assistant to the Assistant Secre-
tary of State
The dates in the calendar are as of Mar. 17.
Second Altenmte
Dallas W. Liort, Adviser on Relief and Rehabilitation,
Department of State '
Advisers to Council Mem Iter
Joseph F. McGurk, United States Ambassador to the
Dominican Republic
Ellen S. Woodward, Member, Social Security Board
Harold Glasser, Deputy Director, Division of Monetary
Research, Department of the Treasury
Lawrence Myers, Assistant to the Secretary of Agri-
culture
S. S. Shepherd, Assistant Director, Division of Admin-
istrative Management, Bureau of the Budget
Albert Viton, Deputy United States Executive Officer
for the Combined Food Board
George L. Warren, Adviser on Refugees and Displaced
Persons, Department of State
476
MARCH 24, 1946
477
James A. Stillwell, Adviser on Supplie'^. Departiiient of
State
Joseph C. Satterthwalte, Chief Assistant, Division of
Near Eastern Affairs, Department of State
Robert G. Hoolcer, Jr., Assistant Chief, Division oj
Eastern European Affairs, Department of State
Louis L. Williams, Jr., United States Public Health
Service on detail to the Department of State
E. P. Penrose, Special Assistant to the United States
Ambassador at London
Chester S. Williams, Assistant Chief, Division of Public
Liaison, Department of State
Doris H. Cochrane, Information and Liaison Officer,
Division of Public Liaison, Department of State
Adviser and Secretary of the Delegation
1 >avid Persinger, Assistant to Adviser on Relief and
Rehabilitation, Department of State
I'rcsx Relations Officer
i'orter JMcKeever, Office of the Special Assistant to the
Secretary of State
Assistant Sea-etary
J. Ward Lowe, Division of International Conferences,
Department of State
Special Advisers to Council Member (to attend if called)
John H. Ferguson, Legislative Assistant to the Under
Secretary of State
John Carter Vincent, Director, Office of Far Eastern
Affairs, Department of State
Herbert W. Parisius, Deputy Director, Office of World
Trade Policy, Department of Commerce
J. F. McArt, Director of Freight Rates, War Shipping
Administration
Edward E. Kunze, Chief, UNRRA Division, Office of
Budget and Finance, Department of State
Nathan M. Becker, Assistant Adviser on Relief and
Rehabilitation, Department of State
Charles P. Nolan, Assistant Adviser, Shipi)ing Division,
Department of State
Fred L. Preu, Assistant to Adviser on Relief and Re-
liabilitation, Department of State
The Far Eastern Commission at its weekly meet-
ing oil Marcli 14 apiiroved tlie appointments of
tliree Vice Chairmen: Mr. Andrei A. Gromyko,
U.S.S.R. ; Dr. Wei Tao-ming, China; and Lord
Halifax, Great Britain.
The order of service of the Vice Chairmen will
be decided by the three in consultation with the
Chairman.
The Commission approved the following Com-
mittees :
Committee No. 1 — Reparations: Chairman, Sir
Frederic Eggleston, Australia ; Deputy Chairman,
Mr. G. A. P. Weyer, Netherlands.
Reparations of goods and materials; restitu-
tion of looted property; and related topics.
Committee No. 2 — Economic and Financial Af-
fairs; Chairman, Sir George Sansom, United
Kingdom; Deputy Chairman, Mr. Kenneth Gal-
braith, United States.
Extent and character of Japanese industi-y,
commerce and agriculture necessary for a viable
economy in Japan ; measures necessary to estab-
lisli such an economy; financial problems; and
related topics.
Committee No. 3 — Constititfional and Legal Re-
form: Chairman, Sir Girja Bajpai, India; Dep-
uty Chairman, Mr. Herbert Norman, Canada.
The Emperor, Diet, Cabinet, local government,
political parties, bill of rigltts, machinery for
drafting a new constitution, electoral system, re-
form of the police system, and related topics.
Committee No. ^ — Strengthening of Demo-
cratic Tendencies: Chairman, Mr. Nikolai V.
Novikov, U.S.S.R. ; Deputy Chairman, Dr. T. T.
Mar, China.
Establishment of freedom of speech, of religion,
and of thought, and respect for the fundamental
human rights; positive policy for the reorienta-
tion of the Japanese ; other measures to strengthen
democratic tendencies and related topics.
Committee No. 5 — War Criminals: Chairman,
Dr. C. L. Hsia, China; Deputy Chairman, Mr.
Melquiades Gamboa, Philippines.
Identification, apprehension, and trial of ])er-
sons suspected of war crimes.
Committee No. G — Aliens in Japan: Chairman,
Mr. Francis Lacoste, France; Deputy Chairman,
Mr. F. C. Everson, United Kingdom.
Friendly aliens; neutrals; and enemy nationals
otlter than Japanese.
The Steering Committee met on Friday, March
15. The Far Eastern Commission held its fourth
meeting on Wednesday, March 20.
The Inter-American Conference for Mainte-
nance of Continental Peace and Security, tenta-
tively scheduled to convene in Rio de Janeiro be-
tween March 15 and April 15 of this year was in-
definitely postponed by vote of the Governing
Board of the Pan American Union on March 13,
1946. It was formally resolved to hold this Con-
ference some time prior to the meeting of the
Ninth International Conference of American
States, scheduled for December of this year.
478
DEPARTMENT OF STATE BULLETIN
World Fund and Bank Inaugural Meeting
MESSAGE FROM PRESIDENT TRUMAN
Members of the Savannah Conference :
On Ijt'half of the United States, I welcome you
to a great .southern city. Savannah, Georgia.
I should like to recall to j'our minds now the
words with whicli the late great President Roose-
velt welcomed the delegates to the Bretton Woods
conference. He said :
"The spirit in which you carry on these discus-
sions will set a pattern for future friendly
consultations among nations in their comnnm in-
terests. Further evidence will be furnished at
Bretton Woods that men of different nationalities
have learned how to adjust possible differences
and how to work together as friends.
"The things that we need to do, must be done —
can only be done in concert. This Conference will
test our capacity to cooperate in peace as we have
in war. I know that you will all approach your
task with a high sense of responsibility to those
who have sacrificed so much in their hopes for a
better world."'
Today we all know of the success which was at-
tained at Bretton Woods. For there was con-
structed a cornerstone upon the foundation of
which a sound economic world can — and must — be
erected. Whether such a sound economic world
will be realized will depend very largely upon
your individual and collective endeavors. For the
great institutions provided for at Bretton Woods
must now become living, operating organisms. To
breathe life into these institutions is your chal-
lenging task.
In this task I wish you Godspeed. You must
not fail.
Harry S. Truman
EXCERPTS FROM ADDRESS BY THE TEMPORARY CHAIRMAN
Representatives From the United Nations :
I welcome you. I welcome you not (mly as the
representatives of friendly nations but also as my
personal friends of the past, of today, and of to-
morrow. I welcome you all, for now our task is
at hand. Ours is the difficult task of waging
peace. War, as you know, is not our business.
The prevention of war is our business. Our work
requires the application of intelligence and effort,
and we must do this job without the benefit of the
dramatics that bound us together in the war
efl'ort.
The Opening Joint Session was held on Mar. 9, 1946.
The President's message was read by Warren Kelchner,
Secretary-General of the International Secretariat of the
("i inference.
' Fred JI. Vinson, Secretary of the U. S. Treasnry and
United States Governor of the Fund and the Bank. Mr.
Vinson was unaniiuonsly elected Chairman of the Board
of the Fund and the Bank on Mar. 11, 1946. Representa-
tives of the United Kingdom, China, France, and India
hold the oflice of Vice chairmen.
In greeting you here today, I cannot — and I
woidd not — escajie the nostalgic memories of our
other meeting, that remarkable conference at
Bretton Woods. I know I speak for all of those
who had the privilege of participating in the
Bretton Woods conference when I say that one
of the most outstanding achievements of that
conference was never recorded in the dociunents
emerging from that historic assembly. The fact
that this major achievement was never inscribed
on any of the formal records of that conference
does not mean, however, that it was neglected or
its true import escaped our attention. For the
mutual trust and genuine understanding between
the representatives of 45 nations achieved at Bret-
ton Woods springs not from the words of man —
but from his heart. So too, on this occasion, the
final measure of our success will never be found
in the words we speak but in the inarticulate
feelings and spirit biu'ied within our hearts.
MARCH 24, 1946
479
I repeat again that written words do not con-
vey this full meaning in themselves. I read them
and I know what they mean to me. I do not
know, I could not know, that they mean precisely
tlie same to you. In fact, if we were so disposed,
probably we could sit here in this very room and
wage intellectual and academic warfare about
nuances in their meaning until the end of time.
From the escapist point of view this form of in-
tellectual acrobatics would be easy. We could be
certain, in such a case, however, of only one thing.
Eventually, perhaps in our own time and while
our own wise words echoed against these walls,
we would be interruj^ted. A stray atom bomb, or
perhaps something even more violent, would drop
among us and our unspoken thoughts would perish
in our minds, for we, and our Fund and Bank,
would no longer exist. Xo, gentlemen, ours cannot
be the escapist course of the intellectual cloister.
Ours must be the practical, concrete course. Ours
is a race against time for sanity.
We have the Bretton Woods agreements right
here with us. Truly, I feel humble in their pres-
ence, because they are great documents. They
permeate this room with their honesty, their vir-
tue, and their truth. We sat down together and
wrote them, with oiir hands and our hearts and
our minds. Here they ai-e, ju.st as we wrote them.
And here in this room are most of the men who
wrote them.
When we had finished with our work at Bret-
ton Woods we were somewhat relieved, for we
found that we had not signed away our self-
respect or the real interests of our respective coun-
tries. We rediscovered that national self-interest
cannot of itself survive, and that world trade and
world reconstruction, on a sound basis, must be
the cornerstone of lasting peace. As Lord Keynes
said, we had to find a "common rule applicable
to each, and not irksome to any". We had anx-
ious moments to be sure. But there was one pur-
pose that bound us together, even when we were
continents apart in language and experience. We
wanteil to succeed. We had enough of the great
catastrophe of war, resounding around our heads,
sickening and murderous. There was only a
shred of human dignity from which to weave our
pattern of world peace and salutary world trade.
We knew what it was to be united, and I mean
genuinely united, in the heart and in the mind.
We must get on with our peace-building work.
Today the weapons are laid aside, only laid aside.
They could be picked up again. The eager hands
of the soldier now busy themselves in building
himself a house, so that he may have dignity
again, so that he may have peace and quiet. But
the individual's resolve to go the way of peace is
only half the answer. The individual and the
nation must both resolve to exert their collective
powers to insure collective peace. Into the fabric
of that collective peace must be woven the strong
cords of universal economic and political justice
and security. Then, and only then, will my
home — and your home — be free from the spectre
of the next, and perhaps the last, war.
We have tried to respond to some real part of
that responsibility by establishing the Interna-
tional Monetary Fund and the International
Bank. They are not the whole answer. We know
that. But they are — and I say it humbly, though
earnestly — an extremely big part of the answer.
Believing all this, we have met once already, at
Bretton Woods, and in a complicated, modern, in-
terwoven society we have written an economic
Magna Charta. Now we are meeting again, for
we must agree on rules of procedure and by-laws.
We are agreed in principle, as the parliamentar-
ians would say ; now we must agree on procedure.
It should not be too difficult. It may be hard,
but it is welcomed work. We must not sabotage
th^ principles bj' protracted debate over pvo-
cedure. We must not get so close to our own
handwriting that we identify it and reargue it.
We have returned to Savannah to implement our
fundamental agreements, and there is no question
in my mind but that we will. We must work
eagerly and untiringly on the difficulties which at-
tend this waging of the peace.
There is a simple axiom written in history. It
is M-ritten in rock for everyone to read, written
and rewritten when the blood of men who die in
battle washes ofi' the stone. It is: "If we want a
better world we must be better people." How
uianv men, since the first tick on the clock of time
480
DEPARTMENT OF STATE BULLETIN
have handed down that wisdom in a thousand
languages. We were, when we gathered at Bret-
ton Woods and when the sacrificial altar of
tyranny was being pushed backward across the
Rhine, actually better people. For a short space
of three weeks M'e were making a better world by
being better people. I hope, I believe, \ve still
are better people. Until I saw these earnest hum-
ble faces of every color and culture I might have
been apprehensive. You set my mind at ease.
When I look I see the same compassionate honest
men I saw before, and although I cannot read
your inner thoughts, I am sure that the hearts of
better men beat within you. This peace must not
be a prelude. It must be solemn and continuing,
compassionate and wise. We knew this at Bret-
ton Woods — and we know it today.
Fourth Council Session of
UNRRA
MESSAGE FROM THE PRESIDENT
To THE Council of UNRRA :
In welcoming the members of the Council of
UNRRA to the United States, I should like first
to express my heartfelt sympathy to all those
members whose countries are at the present time
suffering from the acute food shortages afflicting
the world. In this country our efforts are now sol-
idly behind an emergency food economy program
intended to release as large as possible a propor-
tion of our food supplies for export to the starving
jDeople of the world.
The Opening Plenary Meeting of the Fourth Session of
the Council of UNRRA was convened at Atlantic City,
N. J., on Mar. 15, 19-1(5 by the Director General, Herbert
H. Lehnian.
As to the great work which UNRRA has under-
taken, I know of no more encouraging evidence
that international cooperation for peaceful ends
is possible than the record of UNRRA "s achieve-
ments.
De.spite many obstacles and frustrations it has
given clear proof that where the will of the
United Nations is clearly expressed, prompt and
effective action can be taken.
The United States played its part in the crea-
tion of UNRRA ; it has given UNRRA its whole-
hearted support, and it is my purpose to see that
this support shall be constantly maintained. I re-
alize that now above all things UNRRA 's needs
must be met if the promises of the United Nations
to the liberated countries are to be fulfilled.
I am taking every jjracticable measure to ensure
that the United States does not fall behind the
other supplying nations of the world in providing
the scarce foods needed so desperately by the lib-
erated countries. I regard UNRRA as the best
instrument the United Nations could have to deal'
with this critical situation, and the emergency
measures taken in this country will have as their
purpose the further support of UNRRA.
I have no hesitation whatever in reaffirming the
United States Government's most earnest desire
to support UNRRA in every way in the comple-
tion of its immense task. The United Nations
have been fortunate in having had created for
them this organization which has operated so well
in carrying out the first and most urgent task of
peace. I trust that the high achievements of
UNRRA will encourage the United Nations to
regard UNRRA and the other international or-
ganizations which are noW being created as an
integral part of the machinery of the peace we
are striving to ensure for the world.
Harry S. Truman.
The Record of the Week
United States Military Strength —
Its Relation to the United Nations and World Peace
By THE SECRETARY OF STATE
We Americans realize that the victory over the
Axis was not an American victory alone. The
victory was won by the peoples of manj' countries
welded together in a powerful alliance. But as
Americans we ai'e proud that we contributed
mightily to the defeat of the Fascists and Nazis in
Euroi^e and that we ^jlayed the major part in the
defeat of Japan.
Irish Americans in turn are aware that the
blows struck by America were struck by Americans
of every race and faith. But we of Irish blood
take honest pride in the number of Kellys and
Burkes and Sheas whose names appear in the war's
roll of honor.
These Irish lads came from the cities and the
farms, from the factories and the fields. They
came to the decks of our ships, to the cockpits of
our planes, and to the turrets of our tanks. They
(ame to the landing barges and to the foxholes.
And when their guns and the guns of their com-
rades began to sound, it became certain that victory
would be ours.
Tonight time does not permit me to recite to you
Friendly Sons of St. Patrick the names and deeds
of these Irish heroes. But their names and deeds
will not soon be forgotten, and there will be many
an opportunity for more gifted Irish tongues to
tell the tales of their gallantry.
I know that in these troubled days you are
more anxious to look to the future than to the
past — to consider what we must do now in order
to insure that the sacrifices of these men have not
been in vain.
Consequently, I desire to return to a subject to
which I referred two weeks ago, the military
strength of the United States.
We Americans love peace. We are a nation of
civilians, not soldiers. It is fundamental to our
system of government that military authority be
subordinate to civilian authority.
Even in the midst of total war, we have main-
tained this principle. The American soldiers and
sailors who made military history from New Cale-
donia to Tokyo and from North Africa to Berlin
were not professional soldiers and sailors. They
were civilians in uniform.
This is a fine tradition. Having preserved it in
war, we should not relinquish it in peace.
The pi-oblem is how to reconcile our civilian tra-
ditions with the necessity to maintain our military
strength at a level to match our responsibilities in
the world.
No nation is more willing than the United States
to participate in any reasonable plan for the gen-
eral reduction of armaments. But while other
nations remain armed, the United States, in the
interest of world peace, cannot disarm.
Between 1918 and 1941 there grew up in this
country an important body of pacifist sentiment.
The dominant theme of this movement was that
the way to end war was not to prepare for war.
It was argued that plain men the world over hated
war and that there would be no more war if all
these plain men simply refused ever to fight again.
If the United States were to scrap all its arma-
ments and completely demobilize its army and
navy, it was said, the force of its example would
compel the rest of the world to follow suit. The
peacefid instinct which underlay this point of view
is an admirable one. The trouble with the idea is
that it does not work.
Aildi-ess delivered before the Society of the Friendly
Sons of St. Patrick in New York City on Mar. 16 and re-
leased to the press on the same date.
481
4S2
DEPARTMENT OF STATE BULLETIN
Without consciously deciding to do so, we actu-
ally tried it. By the time the Nazis attacked
Poland in 1939 we had permitted our armed
strength to dwindle to token proportions. When
the war came and the realization slowly grew upon
us that we would not be spared, we regretted that
we were not prepared. The laolitical parties then
indicted each other for the lack of "preparedness."
The argument was no substitute for weapons.
We learned that the example of weakness set
by the United States did not compel Italy and
Japan and Germany to follow suit. On the con-
trary, our weakness incited them to ever bolder
aggressions. Only the accidents of history gave
us two years in which to prepare before the blow
fell at Pearl Harbor.
Those two years were not enough to repair the
damage. We were not ready on December 7, 1941,
and the consequence was that brave men died to
regain the ground we could not hold in the fiist
weeks of war.
This tragic experience makes us realize that
weakness invites aggression. Weakness causes
others to act as they would not act if they thought
that our words were backed by strength.
Today there is grave danger that the sense of
relief which accompanies the end of the war may
cause us once again to do unwittingly what we
would never do consciously.
No one in or out of government desires to extend
for a single day more than is necessary the en-
forced separation of men from their families and
from their peacetime business or employment.
But those who bear the responsibility for the
security and welfare of the nation are alarmed at
the possibility that sufficient numbers of physically
fit men will not be available to replace those who
have earned the right to return to their homes.
This is true now while the Selective Service Act
is still in effect. If the Act is permitted to expire
on May 1.5 of this year, the situation will become
ci'itical. It is imperative that the Act be extended
at least for the period in which the Army and the
Navy have the multiple responsibility for the occu-
pation of Germany and Japan, for the protection
of our surpluses overseas, for the continuing de-
fense of the United States, and for the fulfilment of
our commitments under the Charter.
It is even more important, in the long run, that
we have at all times a reserve of trained men wlio
can be called upon in case of need.
A nujnber of methods have been proposed for
obtaining this trained reserve. As Secretary of
State, I desire to emphasize my whole-hearted and
unequivocal endorsement of the proposal for uni-
versal military training.
It may be that the system proposed can be im-
proved upon with experience in it.s administration.
It is probable that as the years go by the system can
be adapted to the demands of education and civil-
ian employment in ways which will minimize fric-
tion and disruption in private lives. The important
thing, however, is to get started with the plan,
and to get started now.
An intelligently organized and administered sys-
tem of universal military training will not luider-
mine the American tradition of the subordination
of military authority to civilian authority.
As for the effect of the training upon the boy.s,
I can see no cause for alarm. It is not realistic to
say. as some do. that a period of military training
will turn our spirited and independent yovnig men
into untliinking brutes.
If we are to take the word of the old timers
among the master sergeants and chief petty offi-
cers, American recruits have always displayed a
jihonomenal capacity to with.stand education in the
military way of <loing things.
If we need fear anything about the effects upon
our boys of a brief period of military training,
it is that they will learn too little about being
soldiers and sailors rather than too much.
If we are agreed that it is necessary for the
United States to preserve an adequate degree of
strength, it is well to remember that the only
real alternative to universal military training is
the maintenance of a large professional standing
army and navy. This is an alternative which
experience has shown to be a threat to civilian gov-
ernment. It is an alternative which we should ac-
cept only as a last resort.
A system of universal training will keep our
armed forces from becoming fixed in their ways
and habits. Teachers frequently learn from their
pujnls. Youngsters will not readily respond to
training in methods which they know to be out-
moded. Our defense in the modern world depends
upon the mobility and flexibility of our armed
forces and their ability to make use of and keep
up with the advance of science.
It must be acknowledged that universal military
training involves a major change in our society.
MARCH 24, 1946
483
Consequently, the people of the United States
have a right to know the purposes to which this
reserve military strength might some day be put.
This is a fair question. It deserves a fair answer.
The answer is simple. The United States is com-
mitted to the support of the Charter of the United
Nations. Should the occasion arise, our military
strength will be used to support the purposes and
principles of the Charter.
I cannot emphasize too strongly that the United
States looks to the United Nations as the path to
enduring peace.
We do not propose to seek security in an alliance
with the Soviet Union against Great Britain, or
in an alliance with Great Britain against the Soviet
Union.
We propose to stand with the United Nations
in our efforts to secure equal justice for all nations
and special privilege for no nation.
We must maintain our strength, therefore, for
the primary purpose of preserving and using our
influence in support of the Charter of the United
Nations. We will not use our strength for ag-
gressive purposes. Neither will we use it to sup-
port tyranny or special privilege.
I do not desire to conclude on a somber note. 1
firmly believe that the difficulties confronting the
world, although they are serious, can be solved
if all of us approach those difficulties in a spirit
of conciliation and good-will.
There are powerful currents loose in the world
today. But the currents of life cannot be stopped
in their courses. We live in a moving and changing
world.
There is no reason to fear an open and vigorous
contest between our conception of democracy and
other political faiths. The voice of democracy is
as thrilling today as it was yesterday. In a con-
flict of ideas we can be supremely confident of
victory.
The important thing to remember is that a war
of ideas is not won by armies. In international
life there can be progress without war if reason
and not force is recognized as the test of progress.
The basic purpose of the United Nations is to
make force the servant and not the master of rea-
son, and to reject the ancient and discredited doc-
trine that might makes right.
After every great war there comes a period of
anticlimax and disillusionment. Those who fight
together expect, when the fighting is over, too
much from one another antl are inclined to give
too little to one another.
Those who have won the victory expect the
milleiniium and feel that they should have the
fruits of victory without further effort.
They forget that victory in war can only give
the opportunity that would otherwise be denied,
to live and work for the fruits of peace and
freedom.
Having been forced to fight for military victory,
they sometimes think that whatever they want
should be taken by force instead of making their
claims the basis for peaceful negotiation.
It takes time to pass from the psychology of
war to the psychology of peace. We must have
patience, as well as firmness. We must keep our
feet on the ground. We cannot afford to lose
our tempers.
I am deeply convinced that the peoples who
fought together for freedom want to live together
in peace. I am deeply convinced that the peoples
of the United Nations are sincerely committed to
the Charter.
There are always some of little faith ; some who
still believe that they cannot get their due except
by force. There are others who still believe that
ancient privilege will yield to nothing but force
of arms.
But with firmness in the right not as we alone
see it, but as the aggregate sentiments of mankind
see it, and with patience and understanding we
nuist and shall achieve a just and eiuluring peace
for ourselves and all nations.
Inquiry on Reports of Soviet
Military Movements
[Released to the iiress March 12]
The Department of State has received reports
to the effect that duiing the last week additional
Soviet armed forces and heavy militai-y combat
equipment have been moving southward from the
direction of the Soviet frontier through Tabriz
toward Tehran and toward the western border of
Iran. This Government has inquired of the Soviet
Government whether such movements have taken
])lace and if so the reasons therefor.
484
DEPARTMENT OF STATE BULLETIN
American Assistance to China
REMARKS BY GEORGE C. MARSHALL
[Released to the press March 16]
The Chinese people are engaged in an effort
whicli I tliink should command the cooperation
of the entire world. It is an effort almost with-
out precedent. Their leaders are making daily
progress towards the settlement by peaceful dis-
cussions of deep-seated and bitter conflicts over
the past 20 years. They are succeeding in termi-
nating the hostilities of the past 20 years. They
have reached agreements and are now engaged in
the business of demobilizing vast military forces
and unifying and integrating the remaining forces
into a national army. They have agreed to the
basic principles for the achievement, in China, of
political and economic advances which were cen-
turies coming to western democracies.
If we are to have peace — if the world wants
peace — there are compelling reasons why China's
present effort must succeed, and its success will de-
jiend in a large measure on actions of other nations.
If China is ignored or if there is scheming to
thwart the development of unity and present as-
pirations, why, of course, their efforts inevitably
will fail.
The United States, I think, at the present time is
best able to render material assistance to China. I
feel quite certain of the sympathetic interest of
the American people in China ; but I am not quite
so certain as to their understanding, or the under-
standing of their political leaders, of the vital im-
portance to the United States of the success of
the present Chinese efforts toward Unity and eco-
nomic stability if we are to have the continued
jieace we hope for in the Pacific. Incidentally,
I do not believe any nation ean find justification
for suspicion as to our motives in China. We are
asking for no special preferences of any kind
whatsoever regarding economic or similar mat-
ters. We are placing no i)rice on our friendship.
I nuist say, though, that we have a vital interest in
a stable government in China and I am using the
word "vital" in its accurate sense. The next few
months are of tremendous importance to the Chi-
nese people and, I think, to the future peace of the
world. I am now using that t«rm in its longer
sense; that is, through the years. Stable govern-
ments in Asia are of great importance to us, not
to mention what they mean to the people who have
suffered to a degree which the Chinese have during
the past decade.
I have met on every hand the most generous re-
ception, the most remarkable reception, I might
say, and it seemed to me a very understanding co-
operation toward whatever efforts I might be
making. The situation of course has been most
complicated tliroughout my bi-ief stay in China,
first by the disturbed conditions in this country
and in the army in the Pacific, and then later by
the critical state of affairs in Manchuria. De-
spite these difficulties I think tremendous pi'ogress
has been made.
I would like to have you understand something
of an organization that has been established in
Peiping which we call Executive Headquarters.
That is the most important instiunient we have in
China at the present time. Agreements are all very
well, but unless you have a means for carrying them
out, particularly when they are intended to resolve
bitter differences of large groups of people, you
must have some means of implementing those
agreements. So we have in Peiping a headquarters
consisting of three commissions, the chairman of
which is an American, the other two members rep-
resenting the Chinese (iovernment and the Com-
munist Party. Then we have an American Chief
of Staff and under him is a group of about 250
officers. The core of the organization is American,
with the representatives of the National Govern-
ment on one side and the Communists on the other,
and they are brought together within this frame-
work of an American staff. They are represented
in the field throughout the critical portions
of China by teams of three men — one Ameri-
can, one governmental representative and one
(\innnunist representative — and the force and ef-
fect of these agreements and the detailed orders to
MARCH 24, 1946
485
cany them into effect are in that way carried
down on the ground at the scene of the trouble,
wliether it is fighting ; whether it is restoration of
conununications; whether it is relieving the en-
circlement of a city ; the evacuation of Japanese ; or,
as is now cominir up. the demobilization, reorgani-
zation, and integration of the armed forces in
China. We would liave gotten nowhere without
that headquarters. It is absolutely essential in
every step of tlie way in connection with these
agreements which have application to the mili-
tary situation, which of course includes
communications.
Now the last evening I was in China, up to 10
minutes before my departure, we were reaching
agreements regarding sending these teams into
Manchuria. We reached a general agi'eement and
they had certain details to work out after my de-
parture. They should be on their way in now.
It is of great importance that they get there as soon
as possible. You nuist understand that it is ex-
ceedingly difficult, with the best intentions in the
World, to transmit orders where there are very
limited radio communications, almost no highway
conununications over these great distances in these
isolated localities, and where in many cases the
forces are not well-knit organized units. I found
it necessary to make a trip of about 3,500 miles to
the principal region where there was still trouble.
I was accompanied by the Government represen-
tative and part of his staff, and the Communist rep-
resentative with part of his staff. I found in the
case of the latter that they hadn't seen some of
the leaders for two years and had very limited com-
munications with them, from time to time. We
were able to resolve almost every difficulty once we
got the people together. It was very remarkable
how quickly we could straighten out what seem-
ingly were impossible conditions and which had
their tragic effect on the Chinese people. A single
conference of a few hours in an afternoon would
raise the encirclement of what amounted to 10 or
12 besieged cities where people were starving. It
only took that long to straighten out, but until we
arrived nothing could be done.
Now in Manchuria they have had no repre.-^enta-
tive of the Executive Headquarters up to this time.
The situation has been very fluid with troops mov-
ing here and there and, of course, all sorts of minor
clashes occurring. There is no doubt whatever in
my mind that in many instances, particularly on
the Communist side, they are almost unaware of
the agreements we have reached; therefore, it is
most important that we have these teams appear in
that country as quickly as possible. I would like
to say the American officers in these small groups
are rendering a very remarkable service not only
under the difficult conditions of the task but under
extremely difficult conditions of life. I repeat
again that without the headquarters of the nature
that we have established in Peiping with its repre-
sentatives, it would be literally impossible to carry
out any of these agreements, even with, the best in-
tentions in the world at the top.
I saw General MacArthur in Japan and talked
f)Aer with him the representation of Chinese troops
in the army of occupation. He was very happy to
have them and I think you will shortly read of an
announcement bv the Generalissimo to that effect.
Reply to Soviet Inquiry on U. S.
Aicle-Memoire to Bulgaria
[Released to the press March 11]
Note from the Secretary of State to the Soviet Em-
bassy in Washington delivered on March 10, 1046
I acknowledge tlie receipt of your communica-
tion of March 7, 19-46 with reference to an aide-
memoire delivered by this Government to the Po-
litical Representative of Bulgaria in the United
States on February 22, 1946.^
I have taken note of the comments of your Gov-
ernment in this connection, particularly the charges
that this action by the United States Government
is in violation of the decision in regard to Bulgaria
taken by the three Foreign Ministers at Moscow
in December 194.5, and that the United States Gov-
ernment is encouraging the representatives of the
Bulgarian opposition "to resist" the Moscow de-
cision. The Soviet Government also states that
the presentation of that aide-memoire was a uni-
lateral step taken without prior coordination with
other interested Governments which participated
in the Moscow Decision.
As indicated in the aide-memoire under refer-
ence, the United States Government was motivated
in this matter by a desire to correct a misunder-
standing which appeared to exist in various quar-
ters in Bulgaria as to the position of the United
States Government in regard to the Moscow de-
' Bui-LETiN of Mar. 17, 1946, p. 447.
486
DEPARTMENT OF STATE BULLETIN
cisiou concerning Bulgai'ia. The Moscow Agree-
ment provided for procedures looking toward in-
clusion of two representatives of other democratic
groups in the Bulgarian Government. These were
to be truly representative of the parties not in-
cluded in the Government, and to be really suitable
and work loyally with the Government. It did
not occur to the Government of the United States,
nor does it now seem conceivable, that such parti-
cipation would be or should be on terms other
than those mutually acceptable to the participants.
Otherwise the participation would be upon a basis
acceptable only to the participants on one side.
Plainly the participation was not to be pi'o forma
or created by pressure. It was and is the earnest
hope of the United States Government that, meet-
ing in a spirit of conciliation, the Bulgarian Gov-
ernment and the opposition would be able to find
a mutually acceptable basis for the implementation
of the Moscow Decision.
It is therefoi'e with considerable surprise that
the United States (Jovernment learns that its
statement to the Bulgarian Government of so fun-
damental and sinijile a proposition is regarded by
I lie Soviet {Jovernment as a departure from the
agreement. As understood by this Government
tliat statement is the very essence of the agreement.
With reference to the Soviet Government's con-
tention that this step was taken unilaterally and
without prior coordination with other intei'ested
Governments, the United States Government de-
sires to call the attention of the Soviet Government
to the conversations held in London on February
KJ, 1946 between Mr. Cohen, Counselor of the
Department of State, and Mr. Vyshinski, Vice
Connnissar for Foreign Affairs of the Soviet
Union. On that occasion Air. Cohen on instruc-
tlions informed the Soviet Government of the
views of the United States Government in this mat-
ter as subsequently set forth in the aide-memoire
of February 22. Similar conversations were held
by Mr. Cohen in London with the British Gov-
ernment.
Concerning the statement by the Soviet Govern-
ment tliat the United States Government's aide-
mhnoire constitutes encouragement to the repre-
sentatives of the Bulgarian opposition "to resist"
tlie Moscow Decision and that the same tendency
lias previously been shown by the United States
Representative in Bulgaria, the United States
Government has at no time taken any action in
this matter which could be interpreted as incon-
sistent with the friendly spirit of cooperation
which motivated its agreement to that decision.
The activities of the United States Representative
in Bulgaria have been under the instructions he
has received from his (iovernment directed toward
impressing upon all jjarties in Bulgaria the need
for this same spirit of cooperation. It is the sin-
cere desire of the LTnited States Government that
in this spirit an implementation of the Moscow
Agreement regarding Bulgaria will be achieved.
Reply to French Proposal on
Spanish Situation
[Released to the press March 11]
Note delivered to the French Govcnunott on March
9, I9J4G hi/ the American Ambassador in Paris upon
instructions of the Secretary of State
The Government of the United States has given
careful consideration to the French Government's
note of February 27, drawing attention to certain
recent developments in Spain, stating that the
French Government was of the opinion that the
situation in Spain should be submitted for exami-
nation to the Security Council and enquiring
whether the United States Government would
agree to associate itself with the French Govern-
ment in doing so.
The United States Government holds firnlly to
the opinion that any Member of the United Nations
should bring any dispute or any situation, which
might lead to international friction or give rise to
a dispute, to the attention of the Security Council
wiienever that Member feels that such a course is
warranted under the provisions of the Charter.
It is the view of the United States Government
that, in considering whether it would bring a
situation to the attention of the Security Council
or would associate itself with another government
in such action, it should have in its possession facts
which, when examined in the light of the pertinent
provisions of the Charter, afford reason to believe
that a situation exists, the continuance of which is
likely to endanger the maintenance of interna-
tional peace and security.
The Government of the LTnited States has re-
peatedly made clear its attitude in regard to the
present regime in Spain. It supported the resolu-
MARCH 24, 1946
487
tion in San Francisco introduced by the Mexican
Delegation to the effect that a country should not
be eligible to membership in the United Nations if
its government had been assisted to power by the
armed forces of countries which fought against the
United Nations. The United States was a party to
the Potsdam Declaration, applying this principle
in specific terms to Spain. The United States
moreover supported the Panamanian Resolution
adopted in January 1940 at the first meeting of the
General Assembly to the effect that the members of
tlie United Nations Organization should act in
accordance with the letter and the spirit of these
declarations in the conduct of their relations with
Sixain.
The Government of the United States has on
numerous occasions stated its view that there can-
not be satisfactory relations between the United
States and Spain so long as the present regime
continues in power in Spain. It frankly feels that
a change of regime in Spain is not only liighly
desirable fi'om the standpoint of the Spanish peo-
ple themselves, but essential if Spain is to take
tliat place in the family of nations which rightfully
belongs to her. At the same time, the Government
of the United States is compelled to say that it
regards the change of the existing regime in Spain
as a task for the Spanish people themselves. It
is the privilege and the responsibility of the people
of Spain to determine the form of government
under which Spain wishes to live and to choose
the leaders of their government.
While the Government of the United States feels
strongly that a change of regime in Spain is long
overdue, it is compelled to reiterate that it is for
the Spanish peojjle themselves in their own way
to bring about such a change. It is the earnest
hope of the Government of the United States that
the Spanish people will bring about such a change
at the earliest possible moment and by peaceful
means.
On the basis of its present analysis f)f all the
facts in its possession concerning the Spanish situa-
tion, including those mentioned in the note from
the French Government of February 27, 19-16, the
Government of the United States does not believe
that a situation exists, the continuance of which is
likely to endanger the maintenance of interna-
tional peace and security. It is possible that such
a situation may develop, but it was the hope of
the United States Government that the recent ac-
tion it took in concert with the French Government
and the British Government would serve to retard
sucli development. Therefore the United States
Government as at present advised does not feel
that it can associate itself with the French Govern-
ment in now bringing the question to the attention
of the Security Council.
The United States Government is of course pre-
pared to give careful study to any additional in-
foi'mation which the French Government may care
to furnish in connection with its proposal. In con-
sidering such information, the United States Gov-
ernment would appreciate particularly being in-
formed more precisely as to how the French Gov-
ernment believes that the matter comes within the
jurisdiction of the Security Council, the type of
action which in the opinion of the French Govern-
ment the Security Council would be in a position
to take, and any specific recommendations for ac-
tion which the French Government may envisage
making to the Security Council for the solution of
the problem as submitted.
Discontinuance of
United Maritime Authority
MEETING OF EXECUTIVE BOARD
[Released to the press March 11]
The United jNIaritime Executive Board consist-
ing of rejDresentatives of the 18 governments which
had acceded to the "Agreement on Principles Hav-
ing Reference to the Co-ordinated Control of Mer-
chant Shipping" signed August 5, 19i-i, met iuv
London February -t through 11, 1946 and discussed
steps which appeared necessary to complete the
common tasks which had been assumed under that
agreement. The 18 Governments represented are
Australia. Belgium. Brazil, Canada, Cliile, Den-
mark, France, Greece, India, Netherlands, New
Zealand, Norway, Poland, South Africa, Sweden.
United Kingdom. United States, and Yugoslavia.
The Board was unanimously of the opinion that
the return to normal processes of international
shipping business should not be retarded, but was
similarly of the opinion that difficulties and prob-
lems might arise after the termination on March 2
of the Agreement on Principles unless measures
488
DEPARTMENT OF STATE BULLETIN
were taken to insure the orderly transportation of
certain cargoes. Therefore, after thorough con-
sideration, the United Maritime Executive Board
adopted machinery for the discontinuance of
United Maritime Authority controls March 2, 1946,
and also unanimously recommended to the mem-
ber governments through their respective delega-
tions that such governments should enter into a
temporary agreement (expiring October 31, 1946)
providing for :
(1) The meeting of ocean-transportatipn re-
quirements of UNRRA and of liberated areas in
an orderly and efficient manner, the adjustment of
ship space and cargoes to be eflfected by a working
committee in Washington and a subconmiittee in
Canada. There will also be a coordinating and
review committee in London to consider UNRRA's
requirements for loading and to keep the tonnage
situation constantly under review, performing both
such functions in respect to loading areas other
than the United States and Canada.
(2) A temporary consultative council for the
purpose of studying any shipping problem (other
than problems within the terms of reference of
other established governmental conferences or as-
sociations active in the field) which may arise dur-
ing the period of transition from United Maritime
Authority controls to free commercial shipping,
such council to possess no executive powers.
The recommendations state that it is the inten-
tion that the private shipping industry should
collaborate and assist in devising ways and meaias
to implement the common objectives referred to
in (1) and (2) above.
The agreement is intended to preserve on a
voluntary basis, and until the greater part of the
UNRRA and liberated area shipments have been
made, those aspects of the United Maritime
Authority which relate to the programming of
relief and rehabilitation cargoes and the assign-
ment of shipping to carry those cargoes. It does
not continue beyond March 2, 1946 the aspects
(if tlie United Maritime Authority agreement re-
hit ing to controls over shipping.
It is believed that the new agreement will be of
material assistance in assuring the prompt ocean
transportation of food and fuel and other com-
modities to areas where they are urgently needed
for the preservation of human lives.
TEXT OF AGREEMENT
PART "A"
1. Tliat all nations who have regularly con-
tributed tonnage to the common tasks shall con-
tinue to provide shipping for the common tasks
of relief and rehabilitation.
Arrangements for Dry Cargo From U.S. and
Canadian Loading Areas
2. That a Contributory Nations Committee con-
sisting of representatives of nations contributing
tonnage to provide shipping space for relief and
rehabilitation programmes from the United States
and Canada shall be established in Washington.
3. That UNRRA and liberated nations requir-
ing assistance from the Contributory Pool referred
to in (4) below, shall programme their shipping
requirements and submit them to the Washington
Committee established in (2) above. The pro-
cedure to be followed is set out in the Appendix.
4. That at the outset of the agreement each
contributory nation shall declare to the Washing-
ton Committee the maximum and minimum
monthly sailings or tonnage it will contribute for
the period of the agreement. The tonnage thus
contributed is referred to herein as the Contribu-
tory Pool.
Arrangements for Dry Cargo From Other
Loading Areas
5. That a Co-ortlinating and Review Committee
reiiresentative of Nations accepting Part "A" of
this agreement shall be set up in London.
This Committee :
(a) shall consider U.N.R.R.A.'s requirements
for loading in areas other than the United States
and Canada. The nations accepting Part "A" of
this agreement recognise the necessity for meeting
such requirements to the best of their ability and
through their representatives on the Committee
shall co-ordinate the jirovision of tonnage they are
able to make available for these progrannnes.
{h) shall keep the tonnage situation in loading
areas other than the United States and Canada
constantly under review. Recognising the neces-
sity for an adequate supply of tonnage for load-
ing in these areas the nations repi'esented shall
authorise the Connnittee to consider and recom-
mend the measures that should be taken to assist
MARCH 24, 1946
489
tlie fulfilment of the programmes affected in the
event that normal commercial channels are failing
to ensure an adequate supply of tonnage.
General
6. Tliat nations needing shipping assistance
other than that secured from the Contributory
Pool, shall make suitable arrangements for the
procurement of tonnage through commercial chan-
nels or may request it from other juitions. The
nations from whom tonnage is requested shall
make all reasonable efforts to make available the
requested shipping space at fair, reasonable and
compensatory rates, subject to the reservation that
they need not supply such tonnage if it is to be
used in a nurnner contrary to the interests of the
nation upon whom the request has been made.
APPENDIX TO PART "A"
1. To maintain without interruption the maxi-
mum flow of relief and reiiabilitation cargoes from
the United States and Canada, a Contributory
Nations' Committee shall be established in Wash-
ington as provided in (2) of Part "A".
2. With resi)ect to loadings from Canadian
ports, the Washington Committee shall collabo-
rate with a Canadian Sub-Committee to be estab-
lished in Montreal.
3. U.N.R.R.A. and each liberated Nation retiuir-
ing shipping assistance for the carriage of such car-
goes, shall submit to this Committee by the 1st of
each month, its total pi'Ogranune of cargo load-
ings in the United States and Canada showing the
number of coal, grain or other full, bulk cargoes,
and the number of general cargoes progranuned
for loading during the following month, and esti-
mates in the same form for the next two months.
The programme for the specific month should also
show the number, nationality, and total cargo ca-
pacity of vessels already available to the program-
ming claimant for loading during that month.
4. By the 10th of each month each contributing
Nation shall notify the Conunittee as to the
amount of tonnage that it expects to have avail-
able, such tonnage to be within the maxima and
minima as agreed in accordance with (4) of Part
"A." and by the 15th of each month shall confirm
the actual tonnage to be supplied against the fol-
lowing month's requirements, such tonnage to be
stated separately in liner sailings and in tramps.
5. In arranging and determinine: the amount of
tonnage to be provided under 4 of this Appendix,
individual members of the Committee shall at all
times communicate direct with their respective
Nations, who shall, in considering requests for
tonnage to load in the United States and Canada,
make every effort to avoid causing a deficiency in
the supply of tonnage required for other loading
areas.
6. To meet each month's berthing requirements
in the United States, the Committee shall allocate
all of the agreed available tonnage through the
established machinery of the War Shipping Ad-
ministration, so that appropriate co-ordination
with respect to loading facilities, inland transpor-
tation and availability of cargoes may be secured
and the maximum flow of cargo for the month
achieved, together with the most efficient use of
the shipping available.
PART "B"
7. That:
(A) accepting Governments .should meet pe-
riodically for discussions in a United Maritime
Consultative Council for the purpose of exchang-
ing information to the end that individual govern-
ments may be enabled to frame their own policies
in the post-UMA period in the light of the knowl-
edge of the policies of other governments.
(B) the Council may undertake the considera-
tion and study, for the purpose of making appro-
priate recommendations to member governments,
of any problems in the international shipping field,
which niay be referred to it and which do not come
within the terms of reference of other established
governmental conferences or associations active in
the field.
(C) it is the intention that the shipping indus-
ti-y should collaborate and assist in devising ways
and means to implement the conunon objectives
stated in (A) and (B).
(D) meetings of the Council should be held at
such times and places as the Council may deter-
mine. A chairman for each meeting should be
designated by the Government of the nation where
such meeting is to be held. The Council should
determine its own procedure.
(E) the United Maritime Consultative Council
should have no executive powers.
(F) this i^art of the agreement should be open
for acceptance by governments whether or not
they accept Part "A".
{Continued on page .}99)
4Q0
Resumption of Postal Service
With Germany Explored
[Released to the press March 12]
Tlie Department's attention has been drawn to
reports api^earing in the newspapers to the effect
that restricted international postal service between
(xerniany and the rest of the world will be reestab-
lished on April 1.
The question of the resumption of postal com-
munications with Germany has been under con-
sideration by the appropriate agencies of this
Government and the Allied Control Council in
Berlin for some months. April 1 has been set as
the target date for reopening of service, and it is
hoped that this objective can be met. However,
it must be emphasized that April 1 is not a defi-
nite date for the resumption of service and that
unsolved problems may defer the opening for a
short time.
The question of the type of service is still under
consideration. It is unlikely that the initial ser-
vice will be for- anything other than postcards or
very brief personal communications.
As soon as a definite date has been determined
for the resumption of postal service with Ger-
many, a further press release will be issued.
TERRILL— ('0)if//i«e(/ from piiijr ,',.38.
easy to construct for statutory purposes. Over
a period of time, such an agreement may be more
easily attained than can be imagined today. Tra-
ditions, customs, legal systems, and administrative
procedures, however, are too diverse among coun-
tries to entertain a sangiiine hope now for this
achievement in a short time. Even if this end
could be accomplished, the greatest common de-
nominator of accord among the governments
might still be quite small.
Under the second form of agreement — as out-
lined in the Proposals for Esepansion of World
Trade and Employment — the governments would
agree in principle as to the desirability of abating
restrictive business practices in international trade
and would undertake individual as well as con-
certed action to this end. They would also agree
as to the enumeration of certain practices which
are considered as most likely to interfere with the
attainment of the objectives of the International
Trade Organization. The Proposals suggest a
special commission for international business
DEPARTMENT OF STATE BULLETIN
practices to be established under the ITO and to be
charged with the function of receiving complaints
from governments or private business firms (with
the consent of their respective governments) that
the objectives of the Organization are being frus-
trated because of the operation of restrictive agree-
ments. After a preliminary review of such com-
plaints, the Organization would request further
data from member govei'nments and, if warranted,
would recommend remedial action to be taken in-
dividually or cooperatively by the interested gov-
ernments. It would also have the authority to
request member states to consult as t<i apjjropriate
solutions in any given dispute concerning business
practices and to cooperate in giving effect to
remedial action.
The merit of this proposed agreement lies in its
flexibility and its prospects for early operation.
Instead of requiring advance understanding that
certain practices in and of themselves are to be spe-
cifically outlawed, it would set forth a number of
restrictive practices which experience has shown
to be both frequent and detrimental in their effects
and which the individual governments and the in-
ternational agency should consider as prima facie
in conflict with the larger objectives of connnercial
policy. This listing would serve to indicate agree-
ment that certain practices are generally suspect
and may definitely prove to be objectionable under
particular circiunstances. Thi-ough the device of
an international agency which would examine in-
dividual complaints as they arose and which would
make appropriate recommendations to member
governments of ITO, the possible deadlock of defi-
nition of what precisely constitutes restrictive
practice may thereby be avoided and a positive in-
ternational instrument brought into early opera-
tion during the formative period of post-war com-
mercial relations.
Like the first form of agreement descriljed above,
the plan outlined in the Proposals would conmiit
signatory governments to outlaw restrictive busi-
ness practices in international trade and would re-
quire them to act both individually and collec-
tively. It would not necessarily oblige them, how-
ever, to take remedial action upon the existence of
specified practices, but it would require tliem to
act when the violations listed had specified effects.
Tliis realistic approach provides a rather wide area
for intergovernmental understanding and accord
and offers a promising basis for further considera-
tion bv the govermnents of the United Nations.
MARCH 24, 1946
491
Proposed Wool Program
At the present time there is a serious worhl-wide
wool situation. The United States Government
must develop and carry out a wool program that
will adequately safeguard the interests of growers,
merchants, and consumers. Such a program must
also be consistent with our general foreign
economic policy.
Abroad the war stopped trade between the prin-
cipal wool-producing countries of the Southern
Hemisphere and the principal wool-consuming
countries on the Continent of Europe and in Asia.
This has resulted in the accumulation of large
stocks of raw wool in foreign countries. The dis-
tribution of these accumulated stocks and of future
clips will be retarded until transportation, coal
mining, manufacturing, and international trade
L"an be relialnlitated, despite the great consumer
need for wool textiles and clothing. In view of
these facts, the Governments of Great Britain,
Australia, New Zealand, and South Africa have
formed an agency called the Inter-Governmental
Joint Wool Organization for the twofold purpose
of protecting prices to producers in Empire coun-
tries and of disposing of the accumulated surplus
of Empire wool. It is said that this agency will be
prepared to operate for a period of 10 years, or
longer if necessary, to complete the licjuidation of
these stocks. While the Joint Wool Organization
is in operation it is understood that wool produced
in these countries will be sold to the established
trade in the normal manner as long as prices equal
or exceed tlie stabilization levels established by the
Organization. When the wool cannot be sold to
the trade at such prices it will be purchased by the
Oi'ganization at the stabilization prices. It is to
the advantage of wool growers in the United
States to have wool prices stabilized in the major
producing countries abroad. Our growers are
somewhat apprehensive, however, lest the desire of
the Joint Wool Organization to speed liquidation
might result in undue pressure to sell in the United
States.
[Here follows a discussion of tlie domestic wool situation,
proposed legislation, and the relation of the Commodity
Credit Corporation to the wool program.]
In addition to such legislative program, it would
seem desirable to have the Executive agencies un-
dertake the development of an international wool
agreement in collaboration with the various inter-
e.sted foreign governments, to provide for coordi-
nated action and more unified supervision of
world wool marketing and price policies from the
standpoints of producers, consumers, and inter-
national trade. I am asking the Executive agen-
cies to determine the willingness of foreign gov-
ernments to participate in such undertaking. In
the meantime, it is hoped that consultations can be
held with foreign wool agencies which will pro-
vide for a mutual understanding of objectives and
activities in selling policies.
The above program will, in my opinion, afford
domestic wool growers the protection and assist-
ance to which they are properly entitled under
this country's general trade and agricultural poli-
cies. The program will tend to encouriige wool
consumption in the United States, and will be con-
sistent with our general foreign economic policy.
In accordance with the views you have so fre-
quently expressed, this country also should cooper-
ate with foreign producing and consuming coun-
tries in efforts to encourage wool consumption
abroad.
The Proclaimed List
[Released to the press March 16] '
The Secretary of State, acting in conjunction
with the Acting Secretary of the Treasury, the
Attorney General, the Secretary of Commerce, and
the Acting Director of the Office of Inter-Ameri-
can Affairs, on March 16 issued Supplement 2 to
Revision X of the Proclaimed List of Certain
Blocked Nationals.
Part I of Cumulative Supplement No. 2 contains
14 additional listings in the other American re-
publics and 38 deletions; Part II contains 10 addi-
tional listings outside the American republics and
two deletions.
In reply to a letter of Jan. .5, 1946 from Joseph C.
O'Mahoney, United States Senator from Wyoming, the .
President transmitted with a letter of Mar. 11, 1946 a dis-
cussion of the proposed wool program. See S. Doc. 140.
492
DEPARTMENT OF STATE BULLETIN
The Citizen's Role in Foreign Policy
A discussion of the citizen's role in foreign policy by Representative Edith Nourse
Rogers, Republican, Mass., member of the House Foreign Affairs Committee; Repre-
sentative Joseph F. Ryter, Democrat, Congressman-at-large from Connecticut, member
of the House Foreign Affairs Committee; and Francis H. Russell, Acting Director of
the Office of Public Affairs, Department of State. Tlie text of their conversation on the
air, March 16, which was released to the press on that date, is presented below. The
broadcast was another program of the Department of State in the NBC University of
the Air series entitled "Our Foreign Policy," Sterling Fisher, director of the NBC Uni-
versity of the Air was chairman of their discussion. The discussion was adapted for
radio by Selden Menefee.
Fisher : It is quite appropriate that "Our For-
eign Policy"' sliould visit Boston, since Massacliu-
setts is one of the States where tliis series is used
as the basis for an extension course by the
Department of Education. . . . Now, for more
tlian a year we liave been dealing with our foreign
policy in operation. But we have never answered
this basic question: Wliat can the average citizen
do to help formulate and carry out our Nation's
foreign policy? Here is a query that crops up
frequently in our mailbag, and this is an excellent
occasion to deal with it — before a conference of
educators. . . . But first, Congressman Ryter,
let me ask you : Just how important is popular
understanding of our foreign i)olicy?
Ryter : Popular understanding of what goes on
in the world is more imj^ortant today than ever
before — not only here in America, but in Euroj^e,
and everywhere in the world.
• Fisher: Wliy?
Ryter: Because in a .shrinking world such as
we live in, we must have mutual understanding
among nations if we are to avoid war.
Fisher: Mr. Russell, do you think the people
understand the importance of keeping in touch
with foreign affairs?
Russell: I certainly do. Judging from the
amount of mail that comes into the State Depart-
ment, the people are concerned with our foreign
relations as never before. They want to do some-
thing about foreign policy. They want a voice in
it. As a former resident of this State I know that
the Massachusetts law provides for popular ref-
erenda on matters of public interest including
foreign affairs. Through this law, the people have
expressed their approval of the World Court and
world federation.
Rogers: I've seen interest in world problems
growing in my own district in rec«nt years. There
is a great deal more discussion of foreign affairs
than ever before.
Fisher : Why do you suppose that is. Congress-
man Rogers?
Rogers: Well, the war, of course, and especially
the influence of the men who have come back from
ovei'seas. As time goes on more and more of them
will become leaders in their communities. They
will want a strong America and a strong, consistent
foreign policy. They won't be satisfied with
platitudes.
Ryter : One question people often ask is, do we
hare a foreign policj'?
Fisher : Well, Congressman Ryter, do we?
Ryter: I think we have a basic policy in the
Atlantic Charter, although I'm not always sure
that we follow through on it.
Fisher : Congressman Rogers, you're one of the
senior members of Congress. You're the second-
ranking Republican in the House Foreign Affairs
Committee and the ranking Republican on the
Veterans Committee. You've traveled abroad a
great deal, studying foreign affairs. Do you think
we have a foreign policy?
Rogers : I think we have certain ohjectives, but
we do not always follow them. And we have a
number of policies, such as solidarity of the Amer-
icas, the "Open Door" in Asia, and so on.
Russell: I believe President Truman's Navy
MARCH 24, 1946
493
Day speech of last October was an excellent sum-
mary of the general principles that govern our
foreign policy.
Fisher: Mr. Russell, can you summarize that
summary for us ?
Russell: The President started by saying that
our policy is based on friendly partnership with
all peaceful nations, and full support for the
United Nations Organization. Then he listed 12
points. The gist of them was about as follows:
No territorial expansion for the United States, or
for any country unless it accords with the wishes
of the people concerned; self-government for all
people, including eventually those of colonial areas
and enemy countries; freedom of expression and
religion ; freedom of the sea and freedom of access
to raw matei'ials of all nations; world-wide eco-
nomic cooperation to build world trade; and the
''Good Neighbor Policy" in the Western Hemi-
sphere.
Ryter: Those are general principles. But very
often we improvise ways of carrying them out and
hope for the best. We compromise too often.
Russell : I agree, Mr. Ryter, that a set of gen-
eral principles cannot be regarded as a foreign
policy. They are only a point of departure. They
indicate the direction in which we want to go.
Rogers : Let me add one point to the list of ob-
jectives you cited, Mr. Russell. We need to look
out for our own military and economic security.
We have not always done that.
FisiiER : But what about the citizen's role in all
this? He's the central figure in this broad-
cast . . . Repi-esentative Ryter, do you think your
constituents are well informed about our foreign
relations ?
Ryter : Not as well as they should be. One sign
of that is the very general tendency to call people
who disagi-ee with you either fascists or com-
munists. People are too much inclined to sound
off on any issue without even examining the facts.
Fisher: Can you cite an example, Mr. Ryter?
Rtter : The British loan — or rather agreement,
since it's more than a loan — is one example. There
is too much of a tendency to be for or "agin" it
right off the, bat — to reach a hasty conclusion
which we may regret later, at our leisure._^
Fisher : Now, Congressman Rogers, let me ask
you this: Do you think the State Department has
done as much as it should to impart information
to your constituents, say, in Belmont, Massa-
chusetts ?
Rogers: No, Mr. Fisher, I do not. The State
Department could do a great deal more than it
has to get the facts to the people — and to their
representatives in Congress. I believe its officials
should take more initiative than they have to keep
Congress well informed. And the House of Rep-
resentatives should get just as nuich information
as the Senate. We may not ratify treaties, but
after all we are very close to the people.
Rtter : That's right — the State Department has
often neglected to give congressional committees
the information they need to act intelligently.
Fisher : But, Congi-essman Ryter, what bearing
does this have on Bill Johnson, our average citizen ?
Rtter : Plenty, INIr. Fisher. If members of
Congress are well-informed, they will discuss the
issues more intelligently on the floor. Committee
members will be better able to answer questions
on pending legislation. And don't forget, the
average Congressman broadcasts to his home dis-
trict every two or three weeks and sends material
to the newspapers in his district on these things.
So you can get information to the people through
their representatives on the Hill.
Fisher: Mr. Russell, can you speak for the
State Department on this point?
Russell: I certainly agree with Congressman
Rogers and Congressman Ryter that the Depart-
ment should do everything possible to give Mem-
bers of Congress and the American people all the
information possible. I think that great steps
have been taken in both of these directions in re-
cent years. Some of the top officers in the Depart-
ment, including the Secretary, spend a substantial
part of their time on the Hill. Assistant Secre-
taries have been known to appear before three or
four committees in a single day.
Fisher: It's a wonder they have time to get
their work done in the Department.
Russell : You have to remember that duiing the
last two years the State Department has had the
heaviest legislative program of any government
agency in history. Both Congress and the De-
l^artment, as well as the American people, have
taken historic strides forward in formulating and
implementing a new foreign policy. We answer
many requests from Congressmen for information
or for an expression of the Department's policies
every week. And the Department makes an annual
report to Congress, when the budget is being-
considered ....
Rtter : Nevertheless I think that in the House
494
DEPARTMENT OF STATE BULLETIN
of Representatives we hear from the State De-
partment altogether too infrequently between
budget hearings. I think we should have more
frequent and regular reports to appropriate com-
mittees on various aspects of the Department's
work.
Russell: Of course the State Department has
regular liaison with members of the Senate For-
eign Relations Committee, and leading members
of that Committee and of your own House For-
eign Affairs Committee have been sent to various
international conferences — at Mexico City, San
Francisco, London. You were at Mexico City, I
believe, Mrs. Rogers.
Rogers : That's right. But I'd like to add this :
Our Foreign Affaii-s Committee doesn't hold
enough hearings to keep in touch with the De-
partment's work. In 1941, just before the war,
we held only two hearings in a five-month period,
except for those that I forced by introducing res-
olutions of inquiry.
Russell: I'm sure that the State Department
would be glad to send people up to discuss its
work with your Committee as often as you wisli
to invite them. Of course the Department has
to be careful that it is not accused of lobbying
when it tries to make this information available
to Congress. At least a half-dozen departments
and agencies in Washington have been accused of
that. Nevertheless, I agree that some way should
be found for bringing about as close a relation-
siiip as possible between the Department and Con-
gress. An effective foreign policy requires it.
Fisher : Now, I don't like to keep bringing this
up, but how about Bill Johnson, the average citi-
zen ? Mr. Russell, what is the State Department
doing for him?
Russell : I think that's a key question. There's
got to be a maximum flow of information to Con-
gress— but that isn't enough. We have to do what
we can to meet the popular demand for informa-
tion on foreign policy more directly. We use such
means as publication of basic materials, press con-
ferences, conferences with representatives of labor,
business, farm groups, religious groups, women's
groups, and foreign policy groups ; and participa-
tion in this and other radio programs, as well as
occasional talks by officers of the Department at
the invitation of private organizations. I hasten
to add, however, that we are able to handle about
one out of every 25 requests that are received for
talks.
Fisher: Do you think, Mr. Russell, that this
sort of program reaches a very large pait of tlie
American public?
Russell : Yes, over a period of time. The pub-
lic debate over the Dumbarton Oaks Proposals
and the United Nations Charter was a good ex-
ample. We sent out hundreds of thousands of
copies of these documents to people who requested
them. The press, radio, and even the movies told
the story of Dumbarton Oaks. The great major-
ity of people in America became familiar with the
Proposals in a general way. At San Francisco,
representatives of forty-two leading national and
civic organizations actually suggested several
clauses which were incorporated into the United
Nations Charter. Similar steps have been taken
to secure public participation in the formulation
of the UNESCO Charter, the International
Trade Organization proposals and others.
Fisher : Congressman Ryter, is the State Depart-
ment doing its information job to your satisfac-
tion ?
Ryter : Well, Mr. Fisher, I think the informa-
tion work of the State Department is valuable.
But it has its dangers, too. People are apt to think
that information put out by a government depart-
ment is propaganda. That's partly because the
infonnation released is so highly selected.
Rogers: I don't believe the State Department
does as much as it should to get all the facts to the
people. If the public had had all the facts in the
years preceding the war, it's my firm belief that
war would have been averted. The neutrality leg-
islation, which the administration asked for and
which I opposed, lulled America to sleep. As a
result, we were very weak in a military way. Of
course I realize, Mr. Russell, that you have to use
a certain amount of discretion in dealing with ques-
tions involving our security, in order not to aggi-a-
vate a troubled situation. But let's have full in-
formation, and not rely on the atom bomb to keep
the peace, as America relied on the Neutrality Act
before.
Russell : Mrs. Rogers, you and Mr. Ryter have
just expressed very neatly a dilemma which the
State Department faces, and perhaps always will.
If we release infonnation, we're called propagan-
dists ; if we don't release it, we're accused of secrecy.
We get criticized both ways— but we keep trying
to steer the middle course.
Fisher : It seems to me there is a tendency to-
ward more frankness, toward releasing more com-
MARCH 24, 1946
495
plete iiifurination, in recent months. I'm thinking
of the State Department's exposui-e of Nazi influ-
ences in Argentina and Spain.
Rtter : Even there, Mr. Fisher, the long dehiy in
publishing the facts made it seem as if the purpose
were to justify our policy, rather than to enlighten
the public. . . .
Russell : I can say this, Congressman : The State
Department's policy is to release as much infor-
mation as possible, and as quickly as possible, in
so far as it does not interfere with the attainment
of the basic objectives of our foreign policy.
Ryter: But a maximum of information should
be made available to members of Congress, even if
it can't all be made public.
Russell : I agree.
Fisher : Now to get down to our main question :
What can the average citizen do about all this?
First of all. Congressman Rogers, how do you rec-
ommend that he inform himself about interna-
tional affairs, .so he can act intelligently?
Rogers : Well, Mr. Fisher, since this broadcast
originates at a meeting of educators, let me say
that teachers have a great responsibility in this
regard. Surely they ought to be better equipped to
sift the facts about international affairs than most
people. I believe they should try very hard to
present an unprejudiced picture of foreign affairs
to their students.
Russell : By so doing they will bring about an
interest in foreign affairs not only among the
children but among their parents.
Rogers : Yes, Mr. Russell, parents are always in-
terested in the activities of their children. But the
teacher's responsibilities go ever further. He —
or she — should take an active part in the intel-
lectual life of his community. Teachers have a
lot to contribute, on both international and do-
mestic affairs, and I'm convinced that their teach-
ing would be improved by more of an exchange of
ideas with other sections of the community.
Rtter : The matter of where teachers — and other
citizens — get their information on foreign affairs is
also important. They ought to rely not only on
government hand-outs, but also on the press, radio,
magazines, and the like — independent sources that
ai"e, like Caesar's wife, "beyond suspicion." Or
should be, if they're not.
RixiERS : That is essential, Mr. Ryter. If you're
going to arrive at the truth, you have to check
all these sources against each other.
Ryter: No one should accept government re-
leases as gospel truth. That's the road to totali-
tarianism. The citizen should read and listen to
everything he can lay his hands on, talk it over,
and make up his own mind.
Russell: That's exactly what the State De-
pa itment tries to encourage. Congressman Ryter.
We make information available when it's re-
quested or when we think it's needed, but we cer-
tainly want people to get facts from other sources
as well. And we want to see free discussion of
world issues, because we believe that if this oc-
curs, the cream of the opinion will rise to the top.
It's pretty obvious today that foreign affairs are
everybody's business. If everyone doesn't take
l^art in shaping our foreign policy, democracy will
suffer.
Flsiier: Congressman Rogers, you mentioned
that our communities need a better miderstanding
of international affairs. Can you give us an ex-
ample of how that can be brought about ?
Rogers: Why yes, Mr. Fisher — right here in
Massachusetts. About a year ago the city of
Woi'cester ran a very successful project called
''Worcester and the World". For several months
a leading member of the United Nations was hon-
ored each week . . .
Fisher : That started, incidentally, with the pro-
gram manager of the local radio station, who got
the cooperation of the Mayor . . .
Rogers : That's right, but the wdiole town took
it up. In fact, they were very enthusiastic about
it. Each Monday, Mayor William Bennett would
proclaim that it was "Australia Week", or "Neth-
erlands Week," or "Norway Week", and the flag of
the country that was honored was raised over the
City Hall. The radio carried special programs,
ranging from recipes to folk music, the papers car-
ried special articles, and the libraries and stores
held special exhibits on the nation that was being
honored. The ministers frequently related their
sermons to the coimtry under discussion. Prom-
inent representatives of the nation were invited
to visit Worcester during the week, to speak to civic
groups and deliver a public lecture at Clark Uni-
versity. Often short-wave broadcasts were ar-
ranged by the local station during the week, on
which Worcester's civic leaders exchanged greet-
ings and information with people in the other
countries. Before the week was over, the people
of Worcester felt much closer to the people of an
496
DEPARTMENT OF STATE BULLETIN
allied country than ever before. Mayor Bennett
put it this way: "AVe must somehow understand
the Chinese, the American, the Pole and the South
American are alike human beings, with a common
desire to live in peace and securit}' . . . Lack
of understanding breeds distrust, suspicion, and
ultimately hatred and warfare."
Fisher : That was a very ambitions pro-
gram. . . .
Rogers : But very much worth while, Mr. Fisher,
and one that other cities and towns could very
well copy.
Russell : Congressman Ryter, I had a very in-
teresting experience in your State only two weeks
ago. I was invited to New Canaan, Connecticut,
to talk to several civic groups about this very
subject — the citizen's role in foreign policj'. I
foimd the people very nnich interested in these
matters. All that's required is for someone, or
some group, to start the ball rolling.
Ryter : I think that interest is typical of most
towns in my State, Mr. Russell. And I know that
the schools, in Hartford and other places, are con-
stantly conducting studies and projects on other
countries. The social sciences, in particular, do a
good job of this.
Russell: And interest usually continues, once
it is aroused. In New Canaan, a permanent com-
mittee has been set up.
Fisher: Which brings us to our 64-dolhir ques-
tion, Mr. Russell. What can Bill Johnson do to
influence foreign policy? Will that committee in
New Canaan take action to influence our policy
on specific issues?
Russell: The function of that particular com-
mittee will not be to pass resolutions or promote
particular points of view. Its job will be merely
to make sui'e that there is as much information
and discussion about foreign affairs as possible
in New Canaan; to coordinate the activities of
the schools, libraries, clubs, churches, and other
organizations; to make sure that the old New
England habit of town-meeting discussions and
cracker-barrel sessions flourishes as actively as
possible in new forms.
Fisher : What kind of action can the individual
take?
Russell : The individual can act in many Mays.
He can write letters to the State DeiJartment and
to his Congi'essional Representatives in Wash-
ington or to the newspapers. He can support or-
ganizations that are committed to the things for
which he stands.
Ryter : Aside from electing senatoi's and con-
gressmen who reflect their views, Mr. Fisher, the
most effective means the average citizen has of
influencing national policy is by expressing his
views in letters.
Fisher: Do the letters you receive influence
your opinions?
Ryter: Of course you usually have an opinion
on any public issue to begin with. But thought-
ful letters from constituents often modify that
opinion.
Fisher: What do you mean by ''thoughtful
letters" ?
Ryter : Well, you soon learn to evaluate letters.
The ones that I take most seriously are from peo-
ple who take the trouble to tell why they hold
certain views. Letters should also be reasonably
short, so they don't take too much time to read.
LTnfortunately, most of the mail we get is from
people who just say they're for or against some-
thing, and who are highly emotional about it.
Some of them run on for many pages without giv-
ing you a single well-reasoned argument to sup-
port their views.
Fisher : How do you feel about organized let-
ter-writing campaigns?
Ryter: Well, when some group bombards you
with cards or letters, all saying the same thing, of
course you don't pay so much attention to them.
We discount this sort of mail heavily. And you
soon learn to recognize the "repeaters" — people
who write you two or three times a week, on the
slightest provocation. Letters from people who
write only occasionally, on issues they are really
interested in, are the ones I read most carefully.
I pay least attention of all to anonymous letters,
or letters with a signature but no address.
Fisher : Do you get many of those ?
Ry'ter : Quite a few. You see, as Congress-
man-at-large from Connecticut, I get all those
addressed simply to "Congress" from my State.
Fisher: AVell, that provides real insight into
the Congressional mailbag. Congressman Rogers,
does your experience check with Mr. Ryter's ?
Rogers : Yes, except that I rarely get anonymous
letters. I receive a great deal of mail — all that
my staff and I can liandle, and sometimes more
than we can answer. I especially appreciate let-
ters from persons thoughtful enough to say "We
MARCH 24, 1946
497
know you're busy, so don't bother to answer." I
read those with special care, because I know they
write to <^ive me certain information, rather than
just to get a reply.
Fisher : How about mail addressed to the For-
eign Affairs Committee — what happens to that?
Rogers: It goes to the Chairman of the Com-
mittee, and some of it is made available to Com-
mittee members. Sometimes a letter or resolution
which represents an important segment of opinion
is included in our hearings, in the printed record.
Fisher: Mr. Russell, how many letters do you
get at the State Department every day?
Russell : About 400 on the average, including
those which are sent over from the White House for
I'eply. But the number has gone as high as 6,000
a day. That happened during the San Francisco
conference.
Fisher : What hapjjens to all those letters ?
Russell : They are carefully read, classified, and
answered by a special section in the Office of Public
Affairs. Outstanding letters are sent to the top
officers in the Department for reply.
Fisher: But does public opinion actually in-
fluence State Department policy?
Russell: The best answer to that is, we can't
have an effective foreign policy without strong pub-
lic backing. We know this. Our office studies the
oijinion polls, reads and analyzes some 200 news-
papers and numerous magazines and radio com-
mentaries, studies trends in the mail we get, and
sends regular reports covering these matters to
top officials in the Dejiartment. Our policy is defi-
nitely influenced by all this. As former Secretary
of State Cordell Hull once said, "Foreign policy
is not a mysterious game carried on by diplomats,"
but "the task of focusing and giving effect in the
world ... to the will of 135 million people
through the constitutional processes which govern
our democracy."
Fisher : The average citizen has a voice in for-
eign policy, then — if he cares to use it.
Russell: He certainly does. And there is an-
other thing the citizen can do to make our leader-
ship in world affairs more effective. That is to help
keep our own house in order, to help demonstrate
that democracy really works.
Fisher: How do you mean, Mr. Russell?
Russell : I mean this : When we combat racial
discrimination, abolish slums, assure a wider dis-
tribution of medical services, or otherwise enrich
the lives of our own people, we show the strength
of our democratic system and thereby gain prestige
and influence in other countries.
Ryter: Keeping our own house in order is the
best way to combat foreign ideologies.
Rogers : In Springfield, Massachusetts, for sev-
eral years there has been an educational campaign
for racial and religious tolerance. It started in
the schools, but adult education spread the idea
to other groujjs. The idea was to show what
each of the various racial and national groups
in the city's population had contributed to the
nation's culture.
Fisher : What about other Massachusetts cities ?
Rogers : In the high schools of Lowell, there are
more Poles, Lithuanians, Greeks, and children of
other recent immigrant groups than old-line
Americans. But there is no friction. We prac-
tice democracy in all our schools.
Fisher: Congressman Ryter, what about Con-
necticut ?
Ryter: I think some of the best work in my
State has been done by inter-faith councils — local
organizations of Protestants, Catholics, and Jews.
They have carried on a very effective campaign
for better understanding and religious tolerance,
on the radio, in the press, and even on billboards.
Russell : Along this same line, the average citi-
zen can help to cement international friendship
by welcoming visitors fi'om other countries.
Rogers: That is very im^^ortant, Mr. Russell.
We can start by welcoming the war brides that
our veterans have brought to xVmerica. We can
take pleasure in showing them our way of doing
things, and we can learn some things from them
as well. . . .
Russell : ^es, Mrs. Rogei's, and Amei'ican com-
munities can very well take the initiative in invit-
ing people from other countries to visit us. The
Newspaper Publishers' Association of Virginia
jilans to invite editors and reporters from several
countries to live and work with the editors of
Virginia papers for three months during the com-
ing year.
Rogers: I think that sort of thing is si^lendid.
Russell: The State Department wants to pro-
mote these contacts — exchanges of teachei-s, libra-
rians, doctors, technicians of all soils. We can
furnish American organizations with the names
of corresponding groups in other countries and
help to arrange exchanges. We believe we've got
498
DEPARTMENT OF STATE BULLETIN
to leiini to say "Hi, neighbor" to Juan, Jean,
Johan, and Hans, as well as plain John Smith.
Ryter : There's nothing like personal contacts
to build up international understanding.
Fisher: Congressman, I suppose travel is one
of the best ways. . . .
Rtter: It would be, if more people here and
abroad could afford to travel. . . .
Rogers: And if when they did travel, they
could stay long enough to meet and know the
people. Too many Americans stay three days in
a country and then come home and try to write
a book.
Ryter: I think a large-scale exchange of stu-
dents with other countries will do more than any-
thing else, in the long run.
Fisher: Now, I'd like to try to add up what
you have said. You all agree that popular un-
derstanding of our foreign policy is very im-
portant. The Congressmen feel that the State
Department is not doing all it should to supply
the facts the public needs. . . .
Ryter : . . . And Congress needs.
Fisher: Right. You all agree that the citizen
can make a real contribution to foreign policy, not
only at election time but between elections. He
can do it by letting his government and his repre-
sentatives in AVashington know how he feels, and
why, on specific issues. He can also contribute
by helping to arouse interest in world affairs in
his own community. And he can show the world
that democracy works by cleaning up his own
back yard. . . .
Rogers: . . . And by giving a warm wel-
come to foreign visitors in his community. And
let me add one thing, Mr. Fisher : The most prac-
tical day-to-day contribution every American can
make is to save food. Every bit of gi-ain we save
will help prevent starvation abroad, and that cer-
tainly will help to bring about peace.
Ryter: Prevention of starvation is certainly
part of our foreign policy. . . .
Rogers : And when you do it voluntarily, it's
fun to see how much you can save.
Fisher: Thanks, Congressman Rogers, and
Congressman Ryter, and Mr. Russell. Now, I'd
like to add just a word about NBC's plans to con-
tribute to popular understanding of world affairs.
As some of you may have heard, we are sponsoring
a special United Nations Week next September,
when tlie General Assembly resumes its meetings
in New York City. This is a joint project of
the NBC University of the Air, the National Edu-
cation Association, The American Association for
the United Nations, and other organizations. We
will have a United Nations Radio Conference to
arrange the exchange of programs, and in 156 cities
and towns throughout America, NBC and affili-
ated stations will carry special radio programs on
the United Nations, and help to organize com-
munity-wide progi'ams. And on that week the
University of the Air will launch a new weekly
radio series on the United Nations, designed to
bring the people of all the world into Bill John-
son's living room.
Closing of Displaced Persons
Camps Considered
At his press and radio conference on March 15,
the Secretary of State said that the State and War
Departments are considering shutting down dis-
placed i^ersons camps in United States zones in
Germany and Austria sometime between August
1 and September 1. The statement is being made
now, he said, in order that the UNRRA Council,
now meeting at Atlantic City, might consider it.
This action will not affect centers of persecuted
groups among displaced persons and refugees, he
declared. The action is being considered because
the War and State Departments concur in the
opinion that the camps cannot be maintained in-
definitely. But it is not intended by this move, the
Secretary added, either directly or indirectly to
force any of these persons to return to their coun-
tries against their will.
At the London meeting of the United Nations
in Janiuiry, the Secretary continued, the United
States made plain that it is opposed to such en-
forced repatriation. Those who have not re-
turned home or left camps voluntarily for some
other destination before whatever date is fixed
after August 1, will be allowed to secure jobs and
take their places in civilian jobs in our zones in
Germany and Austria.
In reply to a question, the Secretary said
that there were about 550,000 displaced persons in
the United States zone two months ago, of which
80,000 to 100,000 were classed as persecuted per-
MARCH 24, 1946
499
sons who would not be affected by this decision.
He said he had received these estimated figures
from General Lucius Clay, Deputy Military Gov-
ernor of the United States zone, and from Am-
bassador Robert Murphy, United States Political
Adviser on German Affairs.
Asked whether this decision anticipates these
displaced persons becoming nationals of Austria
or Germany, the Secretary said that they must de-
cide that for themselves when they leave camp.
To further questioning he replied that the United
States would be very happy to have UNRRA take
over the camps, but if this is not done some other
international organization may be agreed upon be-
tween now and August. To another question he
replied that this Government will maintain canijis
needed for persecuted persons.
The Foreign Service
Resignation of Leo Pasvolsky
Leo Pasvolsky resigned as Special Assistant to
the Secretary of State, effective March 15. For
the text of Mr. Pasvolsky 's letter of March 2 and
the Secretary of State's letter of March 13 accept-
ing the resignation, see Department of State press
release 180 of March 14.
MARITIME AGREEMENT— Co/i/i««fd pom puye .',89.
PART "C"
8. That the arrangements in Parts "A" and "B"
shall remain in effect from 3rd March until 31st
October, 1946, unless by unanimous consent of the
Governments accepting the respective Parts it is
decided to terminate them at an earlier date.
9. That Goverimients accepting the recommen-
dations in Part "A" and/or Part "B" shall notify
their acceptance to the U. S. and U. K. Govern-
ments at the earliest possible date and that, as
between the Governments notifying their accept-
ance, the relevant recommendations shall be re-
garded as an agreement for the period stated in
recommendation 8.
10. That other Governments requesting infor-
mation should be informed of these recommenda-
tions to the end that they may participate, if they
so desire, by notifying their acceptance of Part
"A" and/or part "B"', in accordance with rec-
ommendation 9.
Medals for Merit Presented to
Foreign Service Officers
[Released to tlie press March 13]
Under Secretary of State Acheson presented
Medals for Merit to six officers of the Foreign
Service at a ceremony March 13. The ceremony
was attended by Donald S. Russell, Assistant Sec-
retary of State for Administration, Selden Cha-
pin. Director of the Office of the Foreign Service,
and by various officers of the Foreign Service now
on duty in Washington.
The six officers who received the Medal for
]Merit and the citation accompanying it were : Le-
land L. Rounds, Kenneth W. Pendar, W. Staf-
ford Reid, Harry A. Woodruff, Frederick P.
Culbert, and David Wooster King.
The Secretary announced that six other offi-
cers of the Foreign Service, some of whom are
still on duty overseas, will receive their decolla-
tions from the ranking United States authorities
in their resj^ective areas of residence.
The citations authorizing these awards wei-e for
exceptionally meritorious conduct in connection
with the Allied landings in North Africa in No-
vember 1942. These citations were all signed by
the late President Franklin D. Roosevelt, but for
security reasons announcement of these awards
could not be made until this time.
Consular Offices
Consul General Leo D. Sturgeon and Vice Consul Louis
Gelfan arrived at Dairen March 9 from Shanghai to re-
establish the consulate there. Consul General Sturgeon
reported that the party was received with greatest courtes,v
by representative principal local officials, including the
commandant and the mayor, who welcomed the party and
offered cooperation.
The American Vice Consulate at Arica, Chile, was closed
to the public on JIareh 9, 1946.
PUBLISHED WITH APPROVAL OF DIRECTOR OF BUREAU OF THE BUDGEr
U. S. GOVERNMENT PRINTING OFFICE: 1948
THE DEPARTMENT OF STATE
VOL. XIV, NO. 352 MARCH 31, 1946
International Economic Cooperation: Necessity for
the British Loan
statement by UNDER SECRETARY ACHESON page 511
International Trade Policy of the United States and
the British Loan page 515
In the Minds of Men
Article by DOROTHEA SEELYE FRANCK page 503
The American Trade Proposals: Intergovernmental
Commodity Arrangements
Article by WILLIAM T. PHILLIPS Page 509
VV^NT o^
For complete contents
see inside cover
M.S. SUPERINTENDENT Of OOCUF..-;..
THE DEPARTMENT OF STATE
BULLETIN
Vol. XIVNo. 352»
Publication 2500
March 31, 1946
For sale by the Superintendent of Documents
U. S. Government Printing Office
Va8bington25. D. C.
Subscription:
52 iBflueB, ^3.50; single copy, 10 cents
Speefal offer: 13 weeks for Sl-OO
(renewable only on yearly basis)
The Department of Slate BVLLETUK,
a ueekly publication compiled and
edited in the Division of Research and
Publication, Office of Public Affairs,
provides the public and interested
agencies of the Government uith
information on developments in the
field of foreign relations and on the
uork of the Department of State and
the Foreign Service. The BULLETIN
includes press releases on foreign
policy issued by the W hite House and
the Department, and statements and
addresses made by the President and
by the Secretary of State and other
officers of the Department, as trell as
special articles on various phases of
international affairs and the functions
of the Department. Information con-
cerning treaties and international
agreements to uhich the United States
is or may become a party and treaties
of general international interest is
inclutled.
Publications of the Department, cu-
mulative lists of uhich are published
at the end of each quarter, as uell as
legislative material in thefield of inter-
national relations, are listed currently.
APR 23^946 C^j^f^^j^
In tlip Minds of Men. page
Article by Dorothea Seelye Franck 503
*UNESCO : Instrument of Acceptance of the United
Kingdom 5O8
The American Trade Proposals: Intergovernmental
Commodity Arrangements.
Article by William T. Phillips 509
International Economic Cooperation: Necessity for
the British Loan.
Statement by Under Secretary Acheson .... 511
*Trade Marks: Luxembourg 514
International Trade Policy of tiie Ignited States and
the British Loan 515
International Organizations and Conferences
Calendar of Meetins-s 525
Activities and Development.s:
Far Eastern Cominission 525
World Fund and Bank Inaugural Meeting. Address by Fred
M. Vinson "... 527
Fourth Council Session of UNRK.\. Statement by the
Representative of the 1^'nited States 527
*Status of World Fund and Bank Agreements 528
American Mission To Observe Greek Elections 529
Arrival of Trygve Lie in U. S . * 529
Soviet-Iranian Matter for Security Council Agenda 529
The Record of the Week
Report on the First Session of the United Nations General
Assembly :
Letter of Transmittal to the Congress 530
Letter From the Secretary of State to the President . . . . 530
Disposition of Philippine Collaborationists. Statement by
the President 534
Purposeful Peace. By Assistant Secretary Braden .... 535
*Treaty of Friendship: China-Dominican Republic .... 538
Action To Expand and Free International Trade. By \\ , G.
Brown 539
First Report of the Inter-. \.gency I'olicy Commiltee on
Rubber 541
Relation of Poland to Critical Grain Situation 542
Publications of tlie Department of State 543
The Foreign Service:
Confirmations 544
Consular Offices 544
•Treaty information.
In the Minds of Men
Article by DOROTHEA SEELYE FRANCK
IN THE Town Hall Meeting of the Air last
Thanksgiving evening, after four speakers had
described the tlireat of the atomic bomb, a prac-
tical questioner rose to ask, "What can we do
about it?" Richard Hottelet's answer was not a
new one; "We must get to know each other better
and better," he replied. That was the answer in
the electrical as well as the iron age, but the ar-
rival of the atomic age has endowed it with a new
uigency.
For many years energetic and enthusiastic
groups of Americans have been helping the
people of the United States and other countries
to get to know each other lietter. Until recently
thfi task has been considered primarily a private
one witli the Government maintaining a laissez-
faire attitude towards it. For the last few years,
however, thoughtful representatives of the Amer-
ican people have been considering ways in which
the Government might facilitate and supplement
these private activities. As a result, a cultural
cooperation piogram is being developed extend-
ing tlie interchange of persons, of knowledge, and
of skills between the United States and other
areas.
One of these areas is the Xear East — the coun-
tries around the eastern end of the Mediterranean
which are more than a collection of oil wells pas-
sively awaiting bigger American machines and
better American technicians: Turkey, Syria,
Mrs. F'ranck is a Divisional Assistant in the Division
iif International Exchange of Persons, Office of Interna-
tional Information and Cultural Affairs, Department of
State. This is the first part of an article on our cultural
ri'lations in the Near East; part II will appear in a later
issue (if the Bulletin.
PREAMBLE
Constitution of the United Nations Educational,
Scientific and Cultural Organization
The Governments of the States parties to this
Constitution on behalf of their peoples declare
that since wars begin in the minds of men, it is in
the minds <>f men that the defences of peace must
be constructed ; that Ignorance of each other's
ways and lives has been a common cause, through-
out the history of mankind, of that suspicion and
mistrust between the peoples of the world through
wliich their differences have all too often broken
into war ; that the great and terrible war which
has now ended was a war made i50ssible by tlie
denial of the democratic principles of the dignity,
equality and mutual respect of men, and by the
propagation, in their place, through ignorance and
pre.jiidice. of the doctrine of the inequality of men
and races; that the wide diffusion of culture, and
tlie education of humanity for justice and liberty
and peace are indispensable to the dignity of man
and constitute a sacred duty vi'hicb all the nations
must fulfill in a spirit of mutual assistance and
concern ; that a peace based exclusively upon the
political and economic arrangements of govern-
ments would not be a peace which could secure the
unanimous, lasting and sincere support of the
peoples of the world, and that the peace must
therefore be founded, if it is not to fail, upon the
intellectual aiul moral solidarity of mankind.
For these reasons, the States parties to this
Constitution, believing in full and equal oppor-
tunities for education for all, in the unrestricted
pursuit of objective truth, and in the free ex-
change of ideas and knowledge, are agreed and
determined to develop and to increase the means
of conununication between their peoijles and to
employ these means for the purposes of mutual
\uulerstanding and a truer and more perfect
knowledge of each other's lives . . .
503
504
DEPARTMENT OF STATE BULLETIN
Lebanon, Palestine, Trans-Jordan, Egj'pt, Iraq,
Saudi Arabia, and Yemen constitute sixty-tbree
million people wbose representatives are calling
for cooperative assistance in many fields from the
United States on the basis of over a century of
friendly relations with her citizens. To build pro-
ductive, self-reliant communities they vrant a
facilitated interchange of persons; knowledge;
and skills in govermnent, industry and agricid-
ture, health, education, and other sciences and
arts.
For only the last qiuirter of a century have any
of these countries been in a position to make official
requests. During the last war, under the leader-
ship of men like Emir Feisal, the Arabs revolted
against the centuries-old domination of the Otto-
man Sultans. Following the general armistice
young Turks led by Ataturk completed the revolt
within Turkey itself against the autocratic and
corrupt Sultans and through the Treaty of Sevres
secured an early revision of the peace treaties.
But during the years following the Sultans' fall
the goal of demwratic self-government which had
stirred their former subjects was not easily and
quickly realized evei'ywhere. Among the Arab
countries disappointments, deepening to bitter
resentment, burst into civil strife and were only
temporarily quelled. Now with the end of a sec-
ond war for democracy against Fascist imperialism
the realization of that goal on a more extensive
scale appears closer. Thoughtful Turkish and
Arab leaders who appreciate the fact that self-
government is a ta.sk to challenge as well as a
slogan to arouse are asking for help from the
United States in implementing the achievement of
that goal.
The new Lebanese Minister to the United States,
Charles Malik, remarked that the countries of the
Near East face an uncertain future in much the
same way the 13 American colonies did a century
and a half ago. Americans were staging their
debut then in a world which did not know quite
how to take them. Today the countries of the
Near East are in a position to stage a reentry into
a society of nations which accepts most of them
theoretically as independent units but is not quite
sure how to apply the theory. American pride
in a new culture which had absorbed much of the
best from earlier traditions and philosophies and
had thrown off confining shackles can be matched
by the pride of Turks and Arabs in renewed and
modernized patterns of an old culture which
flourished from the seventh to the sixteenth cen-
tury at Damascus, Baghdad, Constantinople, and
Cairo.
To the rejuvenation of those old cultures the
United States has ideas as well as skills to con-
tribute. However imperfect the application of
the United States' democratic principles may be
within her own borders, those principles are of
value to Near Eastern countries in building the
foundations for self-government. Fundamental,
probably, is the identification of the citizen's own
intei'ests and those of his immediately family with
the interests of increasingly large groups — with
his neighbors of a different religious faith, with
his whole village, with his country, with other
countries of the region, and ultimately with the
world organization. In still feudal Near Eastern
areas landlords are coming to realize that ulti-
mately the M'elfare of the possessor and his family
nuist depend upon the welfare of those presently
dispossessed. Citizens are being persuaded to re-
turn to their own shoulders the burden of re-
sponsibility for their personal welfare which
generations of control have conditioned them to
transfer to an eternal or earthly master, native
or foreign. There are leaders working to make
government at once the creation and the impartial
servant of the people.
Here, briefly, and with possible exceptions, are
the needs of Near Eastern countries as their rep-
resentatives in the United States see them.
In government they need efficient and enthusi-
astic leaders and either new laws concerning taxes,
land tenure, cooperatives, health measures, and
working conditions or more efl'ective administra-
tion of existing laws. In industry and agriculture
they need trained personnel and the development
of new techniques and skills.
In education — teachers, new schools, modern
teaching methods and fresh course material based
on the needs of the pupils.
In health — effective programs of preventive
medicine, more extensive clinical and hospital
services, greater numbers of trained personnel, and
scientific research which will restore the study of
medicine in the Near East to the high position
Arab medicine held in tlie early history of science.
To cite a few instances, several Arab countries
have asked the assistance of the United States
Department of Agriculture's technicians in devel-
MARCH 31, 1946
505
opin^ their tiemeiidous ii<j;ricu1tural potentialities.
The Depaitineiit of the Interior has recently ad-
vised visiting engineers from Syria and Turkey.
Turkey has asked that its engineers be permitted
to receive advanced training in the United States
Bureau of Reclamation, and Syria has requested
the loan of technical experts from the Bureau.
Iraq has urged that an American agricultural col-
lege be started in Baghdad. Syria has enlisted
the help of tlie United States Public Health Serv-
ice in finding three American surgeons to work for
the Syrian Government. And Turke,y and Egypt
are looking for American teachers to serve in their
national universities.
Parallel with the plainiing of educational and
scientific advances Near Eastern representatives
agree that modern Arabic and Turkish culture
must be enriched through research in the Arabic
and Turkish civilizations, the langauges them-
selves strengthened, the number and quality of
Arabic- and Turkish-language publications in-
ci'eased, standards of journali.sm raised, and se-
lected American classics translated. A steady in-
terchange between the United States and the
Near East of techniques and findings in these
fields would be fruitful for both groups.
What the Near Eastern countries need most and
what the United States is best equipped to offer
them are not questions to be answered glibly. The
little red sclioolhouse is not necessarily the solu-
tion for the school housing problem in a village in
Anatolia or beside the Euphrates. The strict ap-
plication of our sanitary methods will not produce
good living in a group of mud huts where dung
takes the place of non-existent trees for fuel and
where boiled water fed to a day-old baby merely
postpones the inununity it must eventually
develop.
What the United States has attained in prin-
ciples, techniques, and materials to fit her own
needs cannot always be exported to the Near East
(or anywhere else) without modification. In plan-
ning their own development the countries of the
Near East need to learn the facts about themselves,
and in order to contribute to that development the
United States needs to know those facts too. On
the basis of those facts concerning human needs
and material resources in the Near East the United
States must adapt the contributions she nuikes
through her Government representatives as well as
her private institutions in the area.
Programs of Private American Institutions
Last spring the young Syrian Government ur-
gently requested the American University of Bei-
rut to open an American school in Damascus to
prepare boys at secondary and junior college lev-
els. In a subsequent conference with a i-epresenta-
tive of the University, the Syrian Minister of Edu-
cation, himself a graduate of the University, prom-
ised that the Syrian Government would provide
the first building and teachers of Arabic, Arabic
histoi-y and geography if the University could fur-
nish etjuipment and American instructors. When
tlie University's representatives asked what build-
ing might be used, the Syrian Minister enthusi-
astically invited him to inspect the one the Syrian
Government proposed to turn over to the school.
Across Damascus they drove into the grounds of
the Syrian National University. There behind the
mosque stood the law school, large enough for
three hundred pupils.
"That," said the Minister, "is the building we
will set aside for an American school."
Impressed, the University's representative
looked at the law school, at the grounds around it,
and at the nearby mosque.
"Why is your government so anxious to have an
American school started?" he asked.
The Minister's reply was earnest and sincere.
"In order to have a school that will set the standard
of secondary school education for the country."
On November 5, 1945 the Damascus College,
christened by the Syrian Government's supervisor
of education, opened its first classes, equivalent to
the last year of grannnar school and the first year
of high school, with other grades to be opened later.
This turning of many Near Easterners toward
the United States is not a recent phenomenon al-
though the number may have increased with the
end of this war. Starting in 1820 American mis-
sionaries, teachers, and doctors journeyed to the
Near East, bearers of American culture as well as
the Christian gospel. At first elementary schools
were established in the villages, later high schools
in the central towns, and finally colleges and uni-
versities in Turkey, Syria, Lebanon, Iraq, and
Egypt, more than 200 American schools in all. In
the course of ypars less emphasis was laid on relig-
ious conversion and more and more on education
in the fullest sense.
The American Mission moved a printing press
to Beirut in 1834, a time when there were practi-
506
cally no Arabic printing presses. The scarcity of
books had contributed to the l^ck of cultural de-
velopment in the course of the previous century.
As George Antonius puts it in his book The Arab
Awakening (p. 40) :
"The installation of a printing-press equipped
to emit books in the Arabic language opened out
new horizons to educators; and. by providing
teachei-s and pupils with textbooks on the essen-
tial branches of learning, it revolutionised in the
first few years the educational inethods of the
age ... In retrospect, its consequences appear
to have been decisive. It paved the way, by laying
the foundations of a new cultural system for the
rehabilitation of the Arabic language as a vehicle
of thought."
As the accompanying chart shows, for over three
quarters of a century four of these colleges, mem-
bers of the Near East College Association, have
been outposts of American culture in the Near
East. Open to all students in an area rife witli
sectional, religious, and other ditferences, the spirit
of these colleges has been well expressed in the
motto of one of their student orjjjanizations : ''The
DEPARTMENT OF STATE BULLETIN
realm in which we shai'e is vastly larger than the
realm in which we ditfer.'' Efforts are directed
toward making students good citizens of their own
lands, professionally equipped and loyal to their
own religions. Like other American institutions
in the Near East the colleges have won the respect
and cooperation of local people and local govern-
ments. The extent to which they have trained
men and women in all fields, including the field of
government, is indicated by the presence at the
San Francisco Conference of 29 graduates of the
colleges among the Near East delegates and
advisers.
Rohert ColJege''s specialty is its Engineering
School with courses in mechanical, electrical, and
civil engineering. Since one of the basic needs
of Turkey is technical training, Turkish military
cadets who used to receive their technical training
in Germany are now being sent to Robert College;
22 of them were there last year studying English
and social sciences as well as engineering. All
courses of study in the college fit in with the
Turkish national educational system which itself
is based on European and American models
adapted to Turkey's needs.
AiMERiuAX Colleges and Universities in the Near East
Institution and Location*
Turkey
Robert Coll., Istanbul
Istanbul Women's Coll
SyTia and Lebanon
Amer. Univ. of Beirut
Int. Coll., Beirut
Amer. Jr. Coll., Beirut
Damascus Coll- ._
Aleppo Coll
Iraq
Amer. Coll. in Baghdad
Egypt
Amer. l^niv. at Cairo-
Year
Founded
1863
1871
1891
1924
1945
1922
U. S. Incor-
porated
N.Y _
Mass.--
N.Y.-.
Mass..-
Not inc
Not inc
Mass...
Md....
Wash., D. C.
Courses or Degrees Offered
Arts & sciences (B. A. ,B,S.,M. A.); engineering (C.E.,
E.E., M.E.)
Arts & sciences (B.A.)
Arts & sciences (B.A., B.B.A., B.S., M.Ed., M.A.,
M.S.); M.D.; B.S.-Nur.; Phar. Chem.; Mus.
Diploma.
Baccalaureate; jr. coll. certificate (inc. bus., agri.)
Jr. coll. certificate
Planning jr. coll. cour.ses
Jr. coll
Planning jr. coll. courses..
B.A. — general, journalism, education; M.A. — Islamics
Number of Students
822
1,624
172
(1945-6)
548
342
Nationalities
9—88% Turkish.
16.
40.
Chiefly Iraqi.
28— Egyptian. Greek,
Armenian, predomi-
nantly.
• .\merican secondary schools in the same towns train students for each of the colleges.
MARCH 31, 1946
507
IstanhuJ Wo/nen'ft CoUcge demonstrates the
progress of women in the Near East in the hist
century. The College developed from a high
school for girls started in 1871 at a time when
even in the United States the higher education
of women was still frowned upon. Before 1908
the College graduated only two Turkish women,
because of official restrictions on the attendance
of Turkish women at foreign institutions. Under
the Turkish Republic Turkish women have become
teacliers, doctors, editors, lawyers, businesswomen,
and members of Parliament.
Amencaii University of Bcinit''s approach was
described in 1866 by its founder and first president,
Daniel Bliss:
''This college is for all conditions and classes of
men without reference to color, nationality, race
or religion. A man, white, black, or yellow;
Christian. Jew, Mohammedan, or heathen, may
enter and en]\)y all the advantages of this institu-
tion for three, four or eight years; and go out
believing in one god, in many gods or in no god.
But it will be impossible for anyone to continue
with us long without knowing what we believe to
be the truth and our reasons for that belief.''
Almost 80 years later Lebanese Minister Charles
INIalik, a graduate of the University, remarked of
the University's students:
"In their study i-ooms, in their comradeship
with one another, in their trusting exposure to the
great ideas of the Western liberal positive tradi-
tion and in their personal contacts with their
professors, the students . . . learn tolerance, re-
spect of difference, compromise, openness of mind,
the difficult art of criticism, the great art of dis-
cussion, modern techniques in medicine and the
sciences, how to seek the truth, where to seek it,
and how to articulate it once it is found. In this
way the cradle of Western culture,. the Near East,
is once again disciplined in the arts and respon-
sibilities of civilization."'
International College, founded at Izmir
(Smyrna), Turkey, whose original student body
consisted largely of Greeks, Ai-menians, and
Italians, had a gradually increasing enrolment of
Turks — 90-95 percent in the early twenties. It
was closed after the great fire and was reopened
at Beirut as an affiliate of the American Univer-
sity specializing in secondary education.
Besides the Damascus College another Ameri-
can institution in the Near East has recently been
added to the membership of the Near East College
Association.
The American College in Baghdad. Iraq, infor-
mally and officially, has been asking for a well-or-
ganized American secondary school and college to
meet the urgent and growing demand for educa-
tion, particularly technical education. A private
independent American school for boys, which has
been operating in Baghdad for the last 20 years,
is now joining the Near East College Association
and will be developed into a combined high school
and junior college with emphasis on agricultural
and technical courses and including courses pre-
paring students for more advanced work at the
American University of Beirut.
Established shortly after the last war under a
board of trustees not connected with the Near East
College Association, the American University at
Cairo aims "to contribute as richly as possible to
the welfare of Egypt and adjacent countries by
training leaders from among the rising genera-
tion". Its School of Education publishes the only
Arabic educational magazine. Its extension de-
partment includes among its varied activities lec-
tures by prominent Egyptian authorities and vis-
iting educators which were attended last year by
60,000 people. In the School of Oriental Studies
special Arabic courses for beginners and for ad-
vanced students are given by a group of sheiks.
During the war the University provided headquar-
ters for the United States Armed Forces Institute
in the Middle Eastern theater.
The American Junior College at Beirut, an out-
growth of the Presbyterian Board's American
School for Girls founded in 1861, has as its pri-
mary mission "to broaden the intellectual and
spiritual outlook of the women who will carry re-
sponsibility for the standards of their country".
It offers the work of freshman and sophomore
years to women students who expect to enter the
School of Arts and Sciences or the professional
schools of the American University of Beirut.
Since 1943 its applications have exceeded accom-
modations. Besides activities designed especially
to satisfy the special interests and needs of women
students, the College has taken the lead in forming
student-consumer cooperatives with branches
established in many of the city's schools — helping
members to buy things more cheaply and educating
508
DEPARTMENT OF STATE BULLETIN
members in the principles of cooperation and the
development of cooperatives in the country. In
addition the students — Christians, Jews, and Mos-
lems— work in elementary schools, aid in hospital
clinics, conduct classes in both the French
Y. M. C. A. and the Y. W. C. A., and carry on vol-
unteer summer work in remote Syrian villages.
Aleppo College, responsible to both the Pres-
byterian and Congressional Mission Boards, this
year has been able to accept 25 percent more stu-
dents than it did last year. Among them are chil-
dren of leading Syrian officials.
The Y. M. C. A. has branches in Istanbul,
Jerusalem, and Cairo, and the Y. W. C. A. at
Istanbul, Beirut, and Cairo. As a sample of their
varied contrilnitions to connnunity life the
Y. M. C. A. at Istanbul, known locally as the
American Language and Connnercial School,
might be described. The school, with 500 students,
operates a language department whose staff has
not yet been able to expand enough to cope with
the rising demand for English lessons. Evening-
commercial courses and physical education and
recreation, morning, noon, and night, draw many
different groups of young men, and a dormitory
provides healthful lodging for a small group of
university .students. The school operates a sum-
mer camp and furnishes materials and leaders to
the Red Crescent Society for the organization of
sununer camps for poor children. The staff co-
operates closely with Turkish leaders in schools,
clubs, and Juilkeviji (folk-houses). For instance,
in 1943 the Halkevi and Istanbul's Central Board
of Physical Education sent six young men to the
school M'ith the request that they be given a 10-
week course in the psychology of leadership. The
course was well attended, and the young men
trained in it ai-e now active leaders in schools,
clubs, and halkevis throughout the city.
For the past ten years the Near East Fovnda-
t'ton has been operating in Lebanon and Syria on
the basis of the following principles: (1) since the
Near East is predominantly rural its revival must
be based upon rural reconstruction; (2) agricul-
ture is the cornerstone of rural life, so reforms
should begin in agriculture and then be ex-
tended to other aspects of life; (3) reform projects
' For an article by Francis Boarclman on the Middle East
Supply Center, see Bulletin of Dec. 23, 194.5, p. 994.
should be undertaken cooperatively with the peo-
ple and should become self-supporting. At a re-
search station in Lebanon the Foundation carries
on agricultural research and then teaches the im-
proved agricultural practices to classes in 12
schools. The Foundation has developed a system
of agricultural education which bridges the gap
between the latest scientific information and the
low standards villagers have been used to in the
past. A public-health training program and a
home-economics jirogram are coordinated with
the agricultural program.
In a real, if not a physical, sense these American
institutions in the Near East were victims of the
war.' Caught in the spirals of inflation, with
staffs depleted and supplies out to a trickle, they
had a tremendous job trying to maintain truly
American standards of education. Now the insti-
tutions must be retooled and expanded if they are
to give the leadership and assistance needed in the
Near East. In several cases now the number of
applicants turned away for lack of facilities is
greater than the number accepted. Old buildings
neglected during the war must be reconditioned
and new ones built. New projects specifically re-
quested by local governments must be undertaken.
To secure outstanding American personnel sala-
ries offered nnist be adjusted to meet the increased
cost of living. Various of these institutions are
now carrying on campaigns which may enable
them to meet fresh and challenging responsibili-
ties; for instance, the Near East College Associa-
tion, under the campaign chairmanship of Lowell
Thomas, plans to raise $15,000,000 in the next
three years.
UNESCO: Instrument of
Acceptance
United Kingdom
On P'ebruary 20, 194(1 the Government of the
United Kingdom deposited its instrument of ac-
ceptance of the constitution of the United Na-
tions Educational, Scientific and Cultural Or-
ganization which was signed in London Novem-
ber 16, 1945. This is the first instrument of ac-
ceptance to be deposited.
MARCH 31, 1946
500
The American Trade Proposals: Intergovernmental
Commodity Arrangements
Article by WILLIAM T. PHILLIPS
THE Proposals for the Expansion of World
Trade and Employment are designed to free
world trade from the restrictions which have
grown up over the years. Expanding world trade
through concerted multilateral effoi'ts is funda-
mental to the genei'al program for tlie achieve-
ment of high levels of real income and tlie mainte-
nance of international economic stability through-
out the world. Programs of international action
directed to the achievement of this goal require,
however, the giving of special consideration to
certain commodities which loom large in world
commerce and which may become serious sources
of economic maladjustment in tlie absence of
special treatment.
The section of the Proposals relating to inter-
governmental commodity arrangements is de-
signed particularly to deal with "burdensome sur-
plus" situations in individual commodities. The
term "burdensome surplus" describes the situation
which exists when the rate of production of a
commodity is so high in proportion to the relative
demand that the supply can be disposed of only
at unprofitable prices. This situation emerges
typically in primary products whose conditions of
production and consumption are such that they do
not adjust readily to changes in price. Experi-
ence has shown that despite consistently low in-
comes agricultural and other raw-material pro-
ducers do not readily turn to other more profitable
lines of activity. This situation is due in part to
a lack of knowledge or of capital to embark on
alternative ventures as well as to the restraints
imposed by habit and home ties. Production of
these raw materials, consequently, tends to continue
relatively unabated despite unremunerative prices.
A correlative factor which retards readjustment
is the tendency in many such cases for the failure
of consumption to expand rapidly even though
GS7977 — 46 2
prices may have declined sharply. This unfortu-
nate coincidence of both supply and demand being
relatively unresponsive to price changes results in
a slow corrective process with such accompanying
hardsliip to producers that governments are un-
willing or imable to permit the process to pursue
its course uninterrupted. Historically, in such
cases, governments have turned to price-support
programs, reservation of domestic markets for
their own producers, and, in a number of cases,
to international restrictive commodity-control
schemes designed to limit production and to pro-
vide "fair" prices.
Although the growth of connnodity-control
schemes during the interwar period was the result
of the interplay of a number of factors, the
schemes are traceable to a considerable extent to
the dislocations in pi'oduction and consumption
patterjis which grew out of World AVar I. During
that war, facilities for production, particularly of
agricultural commodities, were tremendously ex-
panded outside of the blockaded areas. The con-
sequent distortions in the patterns of production
and trade were of such a magnitude that normal
market forces proved incapable of correcting the
situation swiftly enough to prevent severe pro-
ducer distress. As a result governments unilater-
ally or in concert sought measures for easing the
burden.
The dislocations in production and international
trade during AVorld War II have been even more
This article is the third of a series on the American
Trade Proposals. For the first two articles, see B ulletin
of Mar. 17, 1946, p. 403, and Mar. 24, 1946, p. 455. For text
of the Proposals, see BULLETIN of Dec. 9, 1945, p. 913, and
Department of State publication 2411.
Mr. Phillips is Special Assistant to the Chief of the
International Resources Division, Office of International
Trade Policy, Department of State.
510
DEPARTMEyT OF STATE BULLETIN
drastic due to the broader character of the conflict
and the early loss to the Allies of the re<>ources
and markets of both Euioix' and Southeast Asia.
The reopenino; of normal channels of trade is,
therefore, bringing to light a number of cases of
"excess" world supplies in commodities where new
sources or sulistitute products have been developed
and in which normal market forces may prove in-
adequate to correct the imbalance with sufficient
rapidity.
Knbber is a case in point. During the early
days of World War II the major natural rubber-
producing areas of the world were cut off from the
Allies by the Japanese. As an emergency measure
rubber production was stimulated in Liberia,
Africa, Central and South America, Ceylon, and
even in the United States where guayule rubber
was produced. More significant, however, was the
construction in the United States of a tremendous
new synthetic-rubber industry capable of pro-
ducing over a million long tons of synthetic rub-
ber annually — the equivalent of total world con-
sumption before the war. The reopening of the
natural rubber-producing areas as a consequence
of the fall of Japan has again made available' a
productive capacity of more than one million and
a half long tons of natural rubber. When this
supply potential is coupled with the available syn-
thetic-rubber capacity in the United States and
other countries it foreshadows a rubber supply in
excess of two and one-half million tons annually.
In view of this potential supply, the estimated
world consumption demand of approximately one
and one-half million tons indicates the magnitude
and type of one such probable surplus. In many
other commodities, as well, the production pattern
has been so distorted that readjustments during
the next few yeai-s may jjrove difficult.
Further impetus to the growth of commodity-
control schemes during the interwar period was
provided by the spread of economic nationalism
and the consequent desire on the part of individual
governments to become economically self-sufficient.
This philosophy led, in many cases, to the stimula-
ti(m of home production through the imposition of
tariffs, quotas, and support prices, all designed to
protect home production. These conditions so
altered the normal economic production pattern as
to result in hardship to producers in other areas
who had formerly been dependent on those newly
"protected" markets as outlets for their production.
Intergovernmental restrictive commodity agree-
ments, in a number of cases, evolved out of these
difficulties. The avowed objective of such agree-
ments was usually to lessen price fluctuations and
to "manage", through quotas and similar devices,
the "surpluses'" which developed or were develop-
ing.
Because commodities in which serious problems
are likely to occur are important, in many cases, to
the economic life of particular countries, produc-
ers" distress is likely to create depressed conditions
throughout the entire Nation. The consequent
reduction in purchasing power results in curtail-
ment of demand for the products of other nations
which in turn contributes to a general decline in
levels of employment and production. In order to
prevent individual connnodity situations from
menacing the general program for the maintenance
of high levels of employment and income, a pro-
gram is necessai'y for dealing with them.
The es.sence of the Proposals relating to indi-
vidual conunodities centers around the desire on
the part of the United States and, it is hoped,
other of the United Nations to deal with specific
commodity situations in a way that will be equi-
table to both producers and consumers; such co-
operation will provide an atmosphere tluring
which an orderly shift of resources may occur
without accompanying disorderly markets and
which will make it unnecessary for individual
countries to take unilateral action which would
tend to shift the burden of their problem to other
countries through the inqiositiou of quotas or
embargoes.
The approach set forth in the Proposals diffei's
in important respects from the restrictive com-
modity agi'eements which have existed in the past.
The first emphasis of the Proposals is on con-
certed efforts by governments to reduce surpluses
through encouraging the expansion of consump-
tion. This approach stems from the general trade
philosophy of the United States, which relies on
the reduction or elimination of barriers to trade
in the belief that all nations will benefit through
increased economic welfare from an expansion-
istic point of view in their international economic
relations.
Following this policy, the Proposals relating to
intergovernmental commodity arrangements pro-
vide for the formation of study groups whose
function it will be to make extensive studies of
(Continued on page 538)
MARCH 31, 1946
511
International Economic Cooperation:
Necessity for the British Loan
Statement by UNDER SECRETARY ACHESON
Just about a year ago I had the pleasure of ap-
pearing before tliis Committee and the House Com-
mittee on Banking and Currency during the hear-
ings on the Bretton Woods Agreements Act.
At tliat time we presented the Bi'etton AVoods
agreements and tlie problems they were designed
to meet, in relation to what we then could foresee
of the post-war economic conditions of the world.
We tried to explain what we believed would inevi-
tably happen to countries which require imports to
live when the war ended and American goods ceased
to be shipped under lend-lease. We said those
countries would find it very difficult to get dollars
because for a considerable period of time they
would have very few goods or services to sell. We
knew that the problem would be insoluble if we did
not have the mechanisms of Bretton Woods, be-
cause we would run into a whole sei'ies of I'estric-
tions over all world trade, designed in desperation
to permit each coiuitry to earn as much money
abroad as possible in order to buy enough goods
to keep its people alive and functioning. Each
country would try to stake out its market and build
a fence around it to keep others out. It Mould
not dare to try to compete freely and fairly because
it would fear that others would deal unfairly and
gain unwarranted advantages which would
threaten the very existence of its people. And as
each country staked out its private preserve, trade
would contract and each would be poorer still.
This Committee and the House Committee con-
cluded that this might very well occur. You rec-
ommended the Bretton Woods Agreements Act and
Congress passed it.
A year has gone bj', and we can see whether the
predictions were true or false. Unfortunately, the
commercial and financial situation of the world is
worse than any of us thought a year ago it would
be. Destruction is more complete, hunger more
acute, exhaustion more wide-spread than anyone
then realized. What might have been passed off
as prophecies have become stark facts.
The two Bretton Woods institutions were de-
vised almost two years ago, in July 1944. They
were authorized by Congress not quite a year ago.
They are just now getting organized. But, as Mr.
Clayton reminded the Committee, it was stated in
your report on the Bretton Woods Agreements Act
that only after there was assurance tluit the Fund
and the Bank would be available to encourage
world trade and investment would it be possible
to determine furtlier steps needed to help with
Britain's balance-of -payments prol]lem. And so
we are before you now to discuss the credit to Great
Britain and the related agreements.
We must first think of the importance of the
United Kingdom to world trade; we must think
of the tremendous importance of its currency
which, with the dollar, provided the trading mech-
anism for one half of the pre-war world trade.
After this war, with the elimination of Germany
and Jajjan, two thirds or three quarters of that
trade will be conducted in those two currencies.
These are simply the facts of international life,
which we cannot alTord to forget.
When Great Britain is viewed in the light of
(liese facts, her present position becomes highly
significant. Before the war, one fifth of the entire
trade of the world moved in and out of the ports
of Great Britain. Great Britain and the British
Empire, the United States and Canada conducted
one half of the world trade. Britain's trade af-
fected not only the people who lived in the British
Isles. British trade, along with ours and Can-
ada's, affected every part of the earth, because we
traded with everybody.
Made before the Senate Committee on Banking and Cur-
rency on Mar. 13, 1946 on the Anglo-American Financial
.\greemeut and released to the pres.s on the same date.
512
DEPARTMENT OF STATE BULLETIN
Now, what is the position of Great Britain today,
after six years of war ? By talving the most drastic
and disciplined action, that ishmd transformed
itself almost completely for the production of war
commodities. British manpower was used in the
factories at home and served in the armed forces
all over the world. Every man and woman in
Britain was assigned a task. Leisure could not be
afforded; every skill, every muscle had to be used
against a powerful and ruthless enemy. Life was
completely disrupted to produce materials for the
war and to carry on the war. I am not describing
this situation to argue that the effort of the British
people and their Government obligates us to help
them; I am describing it to indicate the condition
of that island at the end of the war. It is the
present condition of the United Kingdom which
affects the problem of creating an expanding in-
ternational trade. British exports went down to
30 jiercent of what they were before the war, and,
although the United States had provided between
20 and 30 billion dollars of aid through lend-lease,
the British had to conduct the war from the Straits
of Gibraltar to India and Burma through the use
of the pound sterling. Much of it they did on
credit, and tliis further affects the British export
position in the most drastic way. By January 1
of this year, Britain had accumulated more than
13 l)illiou dollars in sterling debts. We have accu-
mulated debt ourselves, but the British accumu-
lated debt to other people. What does that mean
in terms of world trade ?
The first thing is that for years the British will
have to export goods for which they will not be
paid. Those goods will have to be exported to pay
off the accumulated sterling debt. That is the bur-
den the war brought upon them. But it means
something else. It means that unless steps are
ti\ken quickly by which there can be interchange-
ability of curi-ency, the British must work for their
individual creditors, and their individual creditors,
if they are to realize upon their debts, must accept
British goods and services only. That, if not dealt
witli in some way, will bring about economic blocs,
markets enclosed by fences.
I liope it is clear what I mean. In order to
buy meat during the war, the British bought it
from xVrgentina. That is where they had to buy it,
because that was the only place they could get what
they had to have over and above what we and oth-
ers could supply. Tlie .way they paid for that
meat was to say to Argentina, "We can give you
sterling credits in London. We have no goods to
sell to you now, but when we do you can use that
slei'ling to buy them." This was an astonishing
job of financing. People went on taking sterling
credits in London because they had faith in the
British. They covdd not translate the sterling
credits into dollars, francs, pesos, or goods because
the British had none of these things. All they had
was Britain's promise that some day they would
be iible to buy something with the sterling.
If nothing is done about this situation, it will
mean that for a very long time people all over
the world who did the same thing will have to look
only to Britain for goods and services. Unless
sterling can be exchanged for dollars or other cur-
rencies, British creditors must do this trading with
Britain alone. Their money isn't good anywhere
else.
This is the situation of Britain at the end of the
war, and it is the situation which confronted the
British and American negotiators when they came
to discuss the agreement M'hich is now before your
Connnittee.
The agreement is not merely a device by which
the United States lends some money to the British.
We recognized that we had one last, clear chance
(o restore world trade, to so restore it that some-
one who sold goods to England would get money
which he could then use in the United States or
any place else in the world. We wanted this kind
of trade because we believed it would increase pro-
duction and employment everywhere. Our other
choice was to take a narrow view and say. "We've
done enough. Let's simi^ly forget about the Brit-
ish and a system of multilateral trade, and go out
and grab whatever markets we can." The result of
that attitude would be that the Briti.sh would have
only one course open to them. It would be a des-
perate one which offered no real hope to them or
anyone else, for they also would have to grab
markets where they could. They would have to
pull the Empire closer and closer together, and ex-
clude us and every other country from this trade.
The expedients which would be forced upon
Britain are certainly not in our interest:
(1) They would have to reduce all imports that
are not absolutely essential. Public clamor for re-
duction of dollar expenditure on films and tobacco
MARCH 31, 1946
513
has already been voiced. As for many products,
the public could be expected to "go on doing with-
out", though there are obvious limits to this con-
tinued "austerity".
(2) Stinnilatiou of home production wherever
possible would be necessary. Films, apples, feed-
ing stufl's, to name but a few, and machine tools of
types that are wanted from the United States to
speed recovery of the export industries. A "buy
British" campaign at home would not be necessary ;
wlienever available there would be only British
goods to buy. Government powers to assist in
financing agriculture and new industries could be
used extensively; the only limitations would be
manpower and time. Cost and price would be
secondary considerations.
(3) They would have to divert purchases to
sources where credit can be obtained, where pay-
ment agreements can be made, or bilatei-al arrange-
ments under wliich Britain exports in the future
could be sold for imports now and in tlie future.
This would be the chief method which the British
would be forced to use to acquire cotton and to-
bacco, to mention but two products. Fruit and
timber are others; ham, lard and other meat prod-
ucts too, as soon as the present scarcities disappear.
Cotton is so important to Britain's export indus-
tries that imports would be kept as high as possible.
This fact, added to the high United States propor-
tion of world supplies, might keep up our exports
to Britain for a time. But, with the prolongation
of Britain's struggle to right her trade balance
which would result from rejection of the loan, a
longer-term view would be forced on the British
Government which would have to look elsewhere
for prospects of future supplies of cotton. Though
Brazilian and British Empire cotton could not at
once fill more than a small portion of Britain's
needs without the loan and the undertakings to
refi'ain from such arrangements incorporated in
the loan agreement, payment agreements and bi-
lateral arrangements with long-term contracts to
take all future crops might well so stimulate pro-
duction in Brazil as to create a situation the conse-
quences of which American producers would not
like to contemplate. In the Empire, with a really
go-ahead development drive with financial backing
and an assured market, further increases in cotton
production might soon be substantial. Resort to
such expedients would be likely, despite possible
cost disadvantages, as a means to conserve dollars
for other pui'chases.
The case of tobacco is similar. Though a lux-
ury, it is a people's luxury, and a substantial reduc-
tion in total imports would probably be avoided if
possible. But production within the Empire was
tending upward before the war, and public taste
might undergo a lasting change if the need to
conserve dollars should lead the British Govern-
ment to stimulate Empire production by bulk-
purchase arrangements in which dollar-exchange
considerations would outweigh those of cost and
quality.
In the field of manufactures, home production in
Britain would be fostered by the protection of
prohibitions on imports, except from countries
willing to extend credit or to accumulate further
sterling balances with a view to future purchase of
British exports.
A large Canadian loan such as is reported to have
been negotiated in Ottawa would tend, if no credit
were available from the United States, to divert
British purchases to Canada of many manufac-
tured products as well as of timber, apples, canned
salmon, et cetera. American exporters might see
Canadian lard, ham, and other meat replacing pos-
sible exports from the United States when world
scarcities have ceased. This might come about as
early as 1947 or 1948.
Foods available from Australia, New Zealand,
and South Africa such as fruit and meat and
dairy products might present some financial diffi-
culties, but long-term bulk purchases contracted
for under agreements to take future British exports
could certainly be made. The intangible factor
of sentiment would be likely to play a much greater
part in these negotiations than would have been
the case if the British Parliament had not accepted
the loan agreement. If Parliament had turned
down the loan. Empire holders of sterling anxious
to buy American goods would have felt justified in
complaining that an early opportunity to free
sterling on current transactions for their benefit
had been thrown away. But the rejection of the
loan bj' Congress after its acceptance by Parlia-
ment might well have an important influence on
Dominion sentiment, resulting in a sharp turn
towards further Empire preferences and long-term
purchasing contracts. Britain's hand might be
strengthened even in negotiating some further ac-
cumulation of sterling balances by India where
opposition to Bretton Woods and the loan agi'ee-
ment is reported to be based on the fact that imme-
514
DEPARTMENT OF STATE BULLETIN
ditite and substantial convertibility of India's ster-
ling balances is not provided. The British could
truly say that efforts had been made to obtain the
resources to hasten the convertibility of sterling,
but tliat those efforts had not been successful.
There are those in Britain who have suggested
that many American exporters would sell their
products to Britain for blocked sterling. Whether
this be true or not, sucli transactions would obvi-
ously be less acceptable than credits, however ar-
ranged, from countries willing to contract to take
agreed quantities of British exports in some future
period.
So far as our trade proposals are concerned, dis-
cussions aimed at establishing a multilateral sys-
tem would assume an air of unreality against the
background of the immediate necessities and expe-
dients which for the reasons I have indicated are
inevitable, while the economic and trade patterns
resulting from the expedients themselves might
postpone perhaps for a generation the possibility
of ensuring the free flow of the world's commerce.
Meanwhile, the discriminatory expedients to
which Britain would perforce resoi't would in many
cases have all the appearance of retaliation. The
resulting resentment on the part of those in the
United States who would not understand that
Britain could not keep going without these expedi-
ents might well have international j^olitical reper-
cussions, the implications of which are certainly
serious. This resentment in turn would not im-
prove sentiment in Britain towards the United
States, especially if, as is almost certain, the period
of austerity should have to be jirolonged in the
United Kingdom for financial reasons after the
present world food shortage gives way to more
abundant world supplies.
In short, if Congress should not approve the
credit, I foresee much that is disturbing. The
British (ilovernment in power in these first post-
war years, whatever its party, was destined to face
very difficult economic and financial problems.
These difficulties would be greatly eased by the
credit. Without it, the offered imports to make
the difference between a strong or an underfed
population, and the industrial materials to make
the difference between reviving trade or a shrink-
ing and restricted market, must be found some-
' Bulletin of Dec. 9, 1045, pp. 907-929.
how — if need be, by innnediate expedients. These
expedients would be necessities, not retaliation,
but they would look like retaliation import prohi-
bitions and restrictions, (juotas, discriminatory
measures, and bilateral deals. Four or five years
of these necessities would alter the pattern of
world trade. They might see new apple orchards
established in Australia and Canada, the British
taste in tobacco shifted to Empire types, Brazil's
cotton fields extended over some of her vast terri-
tories, and Empire cotton growths improved and
expanded. The restriction of manufacturers' im-
ports to a minimum for several years would foster
British home production of many American spe-
cialties. Plans for exiianding world trade would
recede into a distant and Utopian future. Suspi-
cion and resentment would be fed on Britain's
necessity to eat and work, for she can do neither
adequately without imports, and she would be
forced to get those imports by whatever shifts
would deliver the goods. I see no hope of useful
international cooperation in such a prospect.
This is what we faced. And, after considering
it very carefully indeed for a long time, the Ameri-
can negotiators made the agreement which is now
before you.
The detailed, technical aspects of the financial
agreement and of the Proposals for Expansion of
World Trade and Employment have already been
discussed.^ They are important; they deserve to
be examined carefully. But when you have exam-
ined them I hope you will consider the agreements
as a whole, in the light of tJie alternatives and of
the total situation that I have tried to outline.
Trade Marks
Luxembourg
The Government of Luxembourg has adhered
to the revision signed in London on June 2, 1934
of the Arrangement of Madrid of April 14, 1891
concerning the international registration of com-
mercial and industrial trade marks. In accord-
ance with article 11 of the ariangement as revised
in London, the adherence by Luxembourg took
effect IMarch 1, 194(). one month after the date
of notification by the Swiss Government to other
goveniments parties to that arrangement.
MARCH 31, 1946
515
INTERNATIONAL TRADE POLICY
OF THE UNITED STATES
AND THE RRITISH LOAN
Introduction
The proposed loan of $3,750,000,000 to Great
Britain is one of the most important issues of the
day. Upon its outcome hinges, in a hirge meas-
ure, the pattern of world trade and of future
international economic relations. Expanding
world trade, freed from hampering restrictions,
and growing international economic cooperation
are necessary if the world is to have peace and
prosperity. These are made possible by the
financial agreement.
Since Britain is the world's greatest interna-
tional trader, her foreign financial problems af-
fect the welfare and prosperity of the whole
world. They affect the United States through
their influence on the volume and on the pattern
of world trade. We can choose now the path of
economic cooperation which is basic to peace and
prosperity or we can choose now to start out in
this troubled post-war world on the path of eco-
nomic conflict — economic warfare. The loan to
Britain is essential to the establishment of the
kind of economic world in which Americans want
to live in the future.
The loan — or, more properly, the extension of
a credit upon which Britain can draw for pur-
chases in the United States and elsewhei-e — is
necessitated by the tremendous wartime drain
upon England's resources and the consequent
decline in her foreign trade aiul her foreign
earning power.
The following charts show tlie importance of
world trade to the United States, Britain's in-
fluence on the total volume of trade, the need of
Britain for dollar credits at this time, the terms
and conditions of the loan, and the relation of the
loan to the foreign economic p.olicy of the United
States.
516
DEPARTMENT OF STATE BULLETIN
IMPORTANCE OP WORLD TRADE TO THE OHITED STATES
U.S.
N&TIOKU
INCoir
UUt
1937 5IAIISI1CS
SA% DERIVED FROM EXPORTS
THESE EXPORTS ACCOUNTED FOR:
i 3.9 BILLIONS OP THE EMPLOYMEN! OF THE SOPPORT OF
NATIONAL INCOME 2.4 MIlllOII WORHFRS 7 MILLION PEOPLE
IU0KI[
THE EdUIVALENT OF
CHART I, BRITISH LOAN
Altliougli little more than 5 percent of the total
United States national income was derived from
exports in 1937, the benefit derived from our
world markets was significant enough to swing
the balance of our economy from relative depres-
sion to relative prosi^erity. It can be seen in the
accompanying chart that our exports in 1937
($3,900,000,000) directly accounted for jobs of 2,-
400,000 persons, equivalent to the total numher
of persons employed in Minnesota, Nebrasl'a,
Kansas, and OMahoma. Directly and indirectl}',
our exports accounted for the support of approxi-
mately 7,000,000 Aanericans, equal to the total
populations of Maine, Connecticut, Virginia, and
Florida. Of course, many industries in this coun-
try can sell their total output in the domestic
market, but for many other industries the foreign
market means the difference between operating at
a loss or operating at a profit. For the country as
a whole, this condition is apt to mean the differ-
ence between lower standards of living and lui-
employment and higher standards of living and
full employment. Foreign trade is much more
important today to the prosperity of our country
than it was before the war, because many indus-
tries built up a producing capacity during the
war which will need exi^anding foreign markets
to absorb their total output.
MARCH 31, 1946
517
IMPORTANCE OP BRITilN TO WORLD 4ND U.S. TMDEl
WORLD IMPORTS
G[
FRliNCE
M IMfR.
U.S. EXPO RTS
UTIN
mm AMER. JAP mum
FRANCE;
U.l^. 17 %
%//{E
BJSED ON 1938 STATISTICS
CHART II, BRITISH LOAN
A strong and prosperous Britain is essential to
expanding world trade. The accompanying chart
shows her position not only as the greatest pur-
chaser in the world's markets but also as the best
customer of the United States. Britain is the
largest single importing country in the world.
In 1938, she imported 20 percent of the exports
of all other countries, and these countries depend
upon the British market for a large jjart of their
own foreign income. In the trading world, Brit-
ain is so significant that her fortunes are bound
up with the prosperity of many other nations. A
Britain unable to buy in world markets would
quickly collapse world trade and destroy our
hopes of expanding commerce and improving
standards of living throughout the world.
The smaller circle on the chart shows that the
United Kingdom is also our own best customer
just as she is of many other countries. United
States cotton and tobacco exporters find the
British market essential to reducing their sur-
pluses. United States fruits, pork, and lard are
normally produced in such quantities that the
British market means the difference between glut
and low prices and adequate sales at good prices.
Many raw-material and industrial producers in
this country would suffer dii'ectly from a collapse
in British trade. Indirectly they would suffer
even more as total world trade declined.
Britain's war effort lost to her much of her
former foreign eai'ning power. This loss can be
regained quickly by means of adequate imports
during the first few post-war years. The loan to
Britain is for the purpose of maintaining British
purchasing power in foreign markets during the
years when she is rebuilding her capacity to earn
foreign money needed for purchases abroad.
687977—46
518
DEPARTMENT OF STATE BULLETIN
SOURCES OF INTERNiTIONU iNO DOMESTIC FUNDS
^8ILE OP 60raMENT BONDS
nm
mm
mii snuRiEs
PROfllS
INTEREST
^ONEY RAISED WliyiN
* COUNIRY
mm.mmm
OEfENSE
PUBLIC mm
H0U8IN5
IMPORTS
GOV'T. EXPENSES ABROAD
SERVICES mm
INVESTMENTS
PURCHASE OF 60LD
E\ MUST BE RIISED HBfiOlD FOP. USE JBROiD
CHART III, BRITISH LOAN
Britain needs dollars to spend for the food and
raw materials which she must buy in this country
and in other countries where the dollar is the cur-
rency used to finance trade. We in the United
States are so accustomed to dollars — to getting our
wages and salaries in dollars and spending those
dollars for the things we need — that we forget
that other countries have their own currencies for
tiiese purposes: the peso, the guilder, the franc,
and, in Britain, the pound sterling. Tliis chart
shows in the upper part of the diagram how any
nation uses its own currency to carry on its do-
mestic affairs, both governmental and private. It
shows in the lower part of the diagram how that
same nation must, earn foreign money to pay for
the things it buys from foreign countries.
Britain has a strong indu.strial economy with a
highly skilled and trained labor force capable of
producing a high level of national income — in
pounds sterling. But the war temporarily inter-
fered with her ability to earn foreign money with
which to buy the foreign goods and services she
needs. The lower diagram of this chart indicates
how a nation earns money abroad. Britain's ex-
port industries were converted to war purposes
and they now need to be rebuilt before she can
earn much from these sources ; rebuilding requires
imports to get started. Shipping income has been
cut because of wartime shipping losses; income
from foreign investments has been reduced be-
cause Britain had to sell many of her foreign
secui'ities to finance the early years of the war;
and Britain produces no gold and has very little
in reserve. Therefore, borrowing abroad is the
only way she can get started again.
The loan will give Britain access to the for-
eign foods and raw materials which she needs
but cannot buy without dollars. This loan will
serve the double purpose of rebuilding Britain's
own foreign earning power and of supporting the
level of world trade on which our own exports
dejjend.
MARCH 31, 1946
519
TERMS OF LOIN TO UNITED MN6D0M
h.75 BILLION 0.8. LO^N 70 U.K.
J^
^1000 95 1990 85 1980 75 1970 65 I960 55 1950 1945
CHART IV, BRITISH LOAN
Quite aside fioni the fact that the extension of
a credit to Britain ^Yill residt in increased world
trade and more production and employment in the
United States and elsewhere, the loan is a financial
transaction between the United States and the
United Kingdom entered into in good faith by
both nations. England and the United States
will each benefit from tlie loan, and each will un-
dertake certain connnitments. On the purely
financial side, we extend the line of credit of
$3,750,000,000 now and Britain undertakes to repay
it in the future. The loan carries a 2 percent in-
terest rate. If all of the money is used and if
none of the interest is waived, Britain will repay
to the United States Government a total of nearly
$6,000,000,000 over a period of 50 years— the orig-
inal principal of $3,750,000,000 and $2,200,000,000
in interest. Repayment is to begin in December
1951 and will be divided into 50 equal payments.
This chart shows how the dollars will be re-
turned to the United States, how much of each
annual payment will be api)lied to interest pay-
ment (the black area on the chart), and how much
will be applied to repayment of principal (the
.shaded area on the chart). Interest payments are
in higher proportion of total annual payments in
the first years and decline gradually as more of
the principal is paid oif.
Britain will earn the dollars to make the annual
jiavments by increasing her foreign earning power
through increasing her exports of goods and
services. She will be able to do this without too
nuich hardship if the level of world trade expands
and if the restrictions and barriers to trade are
reduced by all nations acting together to attain
these ends.
520
DEPARTMENT OF STATE BULLETIN
Coun fries Associated with UK Currency and Trade Policy
" I i Aareements wth UK in 945
1936 Base Map
CHART V, BRITISH LOAN
The financial terms of the agreement are much
less imjDortant in the long run than the currency
and trade advantages which will follow as a direct
result of the loan. The financial agreement pro-
vides for removing currency and exchange con-
trols which had been developed during the war by
Britain and by the other countries of the sterling
area.
The sterling area covers a large group of coun-
tries associated M-ith the United Kingdom in cur-
rency and trade policies. All of the countries of
the British Empire, with the exception of Canada
and Newfoundland, belong to the sterling area.
These countries, some of the most important trad-
ing areas in the world, are shown in dark shading
in this chart.
Because Great Britain is the largest single im-
porter in the world, because British currency is
widely used in world trade, and because the coun-
tries of the sterling area have all accumulated large
sterling balances as a result of the war, it would
be possible for Britain to associate these coun-
tries into a "sterling bloc" where trade is channeled
within the area, and every effort would be made to
keep out trade from other areas. Britain is very
short of dollars, and if the loan is not granted
she has no other alternative but to attempt to
form such a bloc and to extend her trade and finan-
cial agreements with every other country who will
negotiate with her. The light shaded area in the
chart indicates these trading and currency agree-
ments that have already extended over a large
portion of the world.
The United States could, of course, develop a
"dollar bloc" of its own. This, however, would
force the two greatest trading nations in the world
into a kind of economic warfare. We would each
have to use devices such as bilateral clearing agree-
ments, exchange controls, currency depreciation,
tariff quotas, and the like. Neither Britain nor
the United States wants this. We both want ex-
panding world trade and increasing international
economic cooperation. The financial agreement
takes specific steps to make such a trade war
unnecessary.
MARCH 31, 1946
521
Operation of Sterling Area Dollar Pool
(T) Dollars paid to Sterling Area Countries
for goods and services
AUSTRALIA
Dollars used for essential goods available only
in U.S.. remaining dollars -^
go to central pool in U.K.
ii,$POOLt
I li ■ '
AUSTRALIA
Controls imposed to limit dollar expenditures 'goods avail-
able in Sterling Area not licensed for import from US
Pool allocates dollars to members to buy
essential goods available only in U.S.
Pool provides
additional
dollars to
members with
insufficient
supply
Under the Agreement the Pool will be abolished within one year. The dollar
receipts of its members will be freely disposable.
CHART VI, BRITISH LOAN
One specific step provided for in the financial
agreement is the abolition of the sterling-area
dollar pool.
This wartime device, developed by Britain and
the other sterling-area countries, conserved scarce
dollars whicli had to be used to pay for strategic
war materials. The operation of the dollar pool
meant tiie rationing of dollars and the control of
imports requiring dollars in all of the countries in
the sterling area. Although the dollar pool was
necessary in helping to win the war, its continua-
tion into peacetime would hamper American trade
and would tend to develop a discriminatory trad-
ing pattern which would affect world-wide trade
relations.
This chart shows how the sterling-area dollar
pool operated during the war. Part 1 shows the
outflow from the United States of dollars used to
pay for goods and services that we bought from
the sterling-area countries. Part 2 shows the flow
of these same dollars into the United Kingdom.
The countries of the sterling area voluntarily de-
posited their dollars in London and voluntarily
submitted to the rationing of these same dollars
522
DEPARTMENT OF STATE BULLETIN
by London. One fijeneral rule of rationing was
that if any commodity could be purchased in any
part of the sterling area, that same commodity
could not be purchased in the United States. Be-
cause dollars were scarce in relation to the tremen-
dous wartime need for United States goods, this
was a wise rule; but it is easy to see how such a
system could distort normal trade patterns and
how its continuation into peacetime would limit
priyate trade and would foster state controls.
Part ?> of the chart shows the return flow of
dollars from the pool in London to the members
of the sterling area. These counti'ies in turn spent
tliem in tiie United States for essential goods.
Some countries contributed more dollars to the
pool than they drew out during the war, and other
countries used more dollars than they contributed.
Dollars, of course, can only be spent in the United
States ultimately. One can understand by exam-
ining this chart how the extension of import
licenses and quotas and exchange controls operate
in such a trading system. The United States
wants to eliminate this tjqie of control in the
post-war world.
The financial agreement proyides for the abol-
ishing of the dollar pool within one year after the
effectiye date of the agreement.
CHART VII, BRITISH LOAN
Operation of Sterling Area
Typical member countries
shown in each period
y^y\j\ I London Bar
Before the War.
1
Convertible
%
©[?a Dollars / ,
^ lor Gold / /
O Much of trade with U.K.
and each other
© Trade financed through
London banics -
£ balances maintained
as desired.
0 £ freely convertible
into dollars or gold.
Q Countries could use dol-
lars freely to buy
goods in U.S.
Present Situation..
Not
convertible
($ Pool used)
, d Dollars
r^tf l^r GoW
S Africa I ^
~o£ area tied to U.K.
I # Discriminatory
trade and
exchange controls
O Controls foster trade
within Sterling area
0 Due to huge U.K. war
expenditures £ bal-
ances in London banks
greatly increased.
QU.K. reserves of gold
and dollars insuffi-
cient to make £• bal-
ances convertible.
O Dollars made available
only for essential
goods not available
in Sterling area.
The Agreement provides that prewar freedom of Sterling earned from trade will be restored.
MARCH 31, 1946
523
Anotlier step tliut the financial agreement makes
possible is the restoration of the pre^-war freedom
of sterling; that is, every country in the sterling
area will be free to exchange its sterling earned
from trade and other current transactions for dol-
lars or for any other kind of currency it wants.
This chart compai-es the trading system of the
sterling area before' the war with the trading sys-
tem which is in existence today. Before the war,
these countries carried on much of their trade
among themselves, and all of them maintained
lialances in London banks in terms of pounds ster-
ling to finance that trade. It was always possible,
however, for any importer in any of the sterling-
area countries to obtain his goods in the United
States or in South America or in other countries
not in the sterling area, and he could obtain the
money to pay for his jjui'chase by converting his
pounds sterling into dollars or into other kinds
of currencies. The sterling area was a voluntary
association of countries grouped about England
and the English currency — the pound sterling.
But this area was not blocked off from the rest of
the world. This kind of trading pattern is shown
in the upper part of the chart.
Because of the necessity to conserve scarce dol-
lars, the sterling area became a closed trading sys-
tem during the war. Each country within the
area is joined to each of the others through import
and exchange controls and all of them are firmly
linked to the trade and exchange controls of the
United Kingdom. Without the loan, this kind
of a trading system would be likely to continue into
the post-war years because Britain can not now as-
sume the responsibility of converting pounds ster-
ing into dollars. She has not at present sufficient
gold or dollars for this purpose, and she will not
be able to earn them until she has rebuilt her ex-
port industries. What this situation means in
terms of ti-ade is shown in the lower part of this
chart.
The financial agreement provides for the resto-
ration of the pre-war convertibility of sterling
into dollars or gold or any other currency for all
sterling earned from trade and other current trans-
actions. The loan to Britain of $3,750,000,000
makes this convertibility possible.
There is one other problem that might hamper
post-war trade which the financial agreement
solves, and that is the problem of "blocked ster-
ling". All of the members of the sterling area
have abnormally large sterling bahmces Avhich
they have accumulated during the war. These
balances are so large that Britain caiuiot under-
take the obligatitm of making them inuuediately
convertible into other currencies. Furthermore,
if this "blocked sterling" could be spent only in
the United Kingdom, it might distort and disturb
trade for a long time to come. Special arrange-
ments had to be made, therefore, for the gradual
liquidation of these balances. As a part of the
financial agreement, Britain undertakes to settle
these balances with sterling-area countries in such
a way that they will not be used to block trade
or to interfere with the reestablishment of the
freer trading system which was in existence before
the war.
524
DEPARTMENT OF STATE BULLETIN
lALTERN HIVES IN WORLD TUDE POLICY
-^-
PUNT OESTRUffttON
RECONVERSION NEEDS
munmm mmim
m Of CREOII
mum C0NM8
0EM0BIII2AII0N
POllIICIl UNCERIAimiES
, HUMAN DISIRESS
TfiAPE EXPANSION"
REPyCEOURIFFS"
CURRENCy STABHIZATlW
AVAIL&BILITy Of CREW
fREEPOMOfCOMMIIIdM
RELIEF t^fiEHABILIIATION
DISCRIMINATION
BARTER PEALS"
HIGH TARIFFS
CUBBEHCV MflHIPOlATION
BLOCI^ED FUNDS
CARTELS ~
PRECitlSIVE BUYING"
CHART VIII, BRITISH LOAN
This cliart lists, at the extreme left, some of the
economic problems that now plague the world and
sliows the two paths now open to ns : the path to-
ward economic cooperation based solidly upon in-
ternational agreements for solving some of our
mutual economic problems, and the path toward
national, independent solutions of these same
problems which means economic warfare. The
people of the United States have chosen the path
of international cooperation — and this includes
economic cooperation. This program, however,
requires equal purpose and equal effort from all
of the United Nations.
Britain too has chosen the path of cooperation,
but, without access to dollar markets, she would
have to use every ineans in her power to get the
goods and the services abroad that she must have
to protect her own existence. Any nation will
struggle to make the best of its current situation;
if denied access to foreign markets, it must inevi-
tably resort to barter deals, blocked funds, high
tariffs, discrimination, and currency controls.
The loan frees Britain from such a bitter choice.
It enables her to cooperate with the United States
in making successful the International Monetary
Fund, designed to acliieve stabilization of curren-
cies and to bring international rules to bear on
currency problems. It enables Britain to join
with us in creating an International Trade Organ-
ization for the cooperative solution of trade and
cartel problems. The loan to Britain is thus the
enabling device which sets the two greatest trad-
ing nations of the world — the two nations with
hard, strong currencies used to finance the trade
of many other nations — upon the path toward
economic cooperation, toward prosperity and
peace.
International Organizations and Conferences
Calendar of Meetings
Cimiicil of Foreign Ministers: Meeting of Deputies
Far Eastern Commission
London
Washington
Pi-ovisional International Civil Aviation Organization :
North Atlantic Route Service Conference Dublin
European Route Service Conference Paris
International Monetary B"'untl (Did the International Wilmington Island, Ga.
Bank for Reconstruction and Development : Boards
of Governors
Fourth Session of the UNRRA Council Atlantic City
Preliminary Meeting of Conference on Health Organi- Paris
zation
Allied Svciss Negotiations on German External Assets Washington
Anglo-American Committee of Inquiry Jerusalem
Third Conference of American States Members of the Mexico, D.F.
International Labor Office
Fifth Pan American Railway Congress
Tlie United Nations :
Security Council — Committee of Experts
Security Council
Military Staff Committee
Negotiating Committee on League of Nations Assets
Special Committee on Refugees and Displaced
Persons
Economic and Social Council : Second Session
General Assembly
January 18 (continuing in session)
February 2(1 (continuing in session)
March 4 (continuing in session)
April 24
March 8-18
March 15 (continuing in session)
March 15 (continuing in session)
March 18 (continuing in session)
Opened on about March 8 (continuing
in session)
April 1
Montevideo
April 5
London
March 15
New Yorlj
March 25
New York
March 25
Geneva
April 6
London
April 8
New York
May 25
New York
September 3
The dates in the calendar are as of Mar. 24.
Activities and Developments
The Far Eastern Commission at its weekly
meeting on INIarch 20 was addressed by Brigadier
General K. R. Dyke, Chief of the Civil Informa-
tion and Education Section of Headquarters,
Supreme Commander, Allied Powers in the
Pacific. General Dyke has just returned from
Japan, and he told the Commission of current j^rob-
lems in Japan and later answered questions from
the delegates.
The Commission approved the following pro-
cedure :
1. Each delegation may submit documents for
the consideration of the Commission. Such com-
munications should be addressed to the Secretary-
General, who is authorized, after consultation
with the delegation concerned, to reproduce and
circulate such documents to the Commission for
information and simultaneously to refer them to
appropriate committees for consideration.
2. In the event that a document does not fall
within the jurisdiction of one of the established
committees of the Commission, the document
525
526
DEPARTMENT OF STATE BULLETIN
should normally be referred to the Steering Com-
mittee for consideration.
The Commission approved FEC docmnent num-
bered 029, and the delegates agi'eed to advise the
Secretary-General of their decisions regarding
filling these positions with personnel from the
countries represented on the Commission.
Text of FEC document 029 follows :
1. The enclosure, a description of three new
positions in the Secretariat, was approved by the
Steering Committee at its fifth meeting on 15
March 194G and was referred by the Steering Com-
mittee to the Far Eastern Commission for con-
sideration.
2. It is felt that the work of the Commission
and the adequate servicing of its committees by
the Secretariat call for the early filling of these
positions by qualified personnel.
3. If any government participating in the Far
Eastern Commission is able to second an indi-
vidual to fill one of these positions, the Secretary-
General would be glad to consider such an offer.
In this case, it is recommended that the officer be
a.ssigned to the Secretariat of the Far Eastern
Commission and be made responsible to the Secre-
tary-General, but that his salary and living
expenses be paid liy his government. It is sug-
gested that an appropriate salary would be that
corresponding to P— t in the U.S. Civil Service,
at $4,300 a year. Whether or not an extra rental
allowance should be made, is a question for the
discretion of the government concerned.
4. If there is no indication, within a fortnight of
the consideration of this matter by the Commis-
sion, that Allied personnel may be available, the
Secretary-General M'ill then take the appropriate
steps to fill these positions with U.S. personnel.
Meanwhile the Secretary-General may make tem-
porary appointments to these positions, pending
selection of permanent appointees.
ENCLOSURE
Organization of the Secretariat of the Far
Eastern Commission
The following new positions should be estab-
lished and filled as soon as possible in order that
the Secretariat may adequately serve the Commis-
sion in its work :
1. Research (ind Analysix Secretary
The Research and Analysis Secretary will be
responsible, under the direction of the Executive
Officer, for the review, analysis, and di.ssemination
to the Commission of all material pertinent to its
work. This will include the procurement of in-
formation through appropriate channels, the
analysis, abstraction, and classification of such ma-
terial in the way best suited to meet the organi-
zation of the Commission and its committees, the
analysis of the various reports from the Supreme
Connnander and the United States Government
with respect to the occupation of Japan, and a con-
tinuing study and review of current newspapers,
magazines, and journals for articles and informa-
tion of interest and value to the Commission.
2. Legal Secretary
The Legal Secretary will be responsible, under
the direction of the Executive Officer, for advising
tlie Commission with I'cspect to all legal aspects
of its work. He will advise on the final form of
all Commission actions and on appropriate dispo-
sition of such actions according to the channels
as agreed in the Terms of Reference. He will also
serve as the Secretary of Committee No. 3 : Consti-
tutional and Legal Reform, of Committee No. 5 :
War Criminals, of Committee No. 6 : Aliens in
Japan, and of such other committees as may be
formed which deal particularly with legal prob-
lems. In serving these committees and their sub-
committees, he will be responsible for the appro-
priate processing of their papers and the procure-
ment of information necessary for their work. He
will assist in liaison among the representatives on
these committees and in coordination among these
committees.
3. Economic Secretary
The Economic Secretary will be responsible, un-
der the direction of the Executive Officer, for ad-
vising the Commission with respect to all economic
aspects of its work, initially with particular refer-
ence to the establishment of an international repa-
rations agreement. He will also serve as Secre-
tary of Committee No. 1 : Reparations, Commit-
tee No. 2: Economic and Financial Affairs, and of
such other committees as wvny be formed to deal
with economic problems. In serving these com-
mittees and their subcommittees, he will be re-
sponsible for the approi)riate processing of all
their papers and the procurement of information
necessary for their woi'k. He will assist in liaison
among the representatives on these counnittees and
in coordination among these committees.
MARCH 31, 1946
527
World Fund and Bank Inaugural Meeting
Address by FRED M. VINSON
OUR WORK has been worthwhile and pleasant.
A man asks little mure. It is difficult for me
to accept the fact that now we part.
Wiien w-e assembled 10 days ago, I was confident
that we would have a unity of purpose, that we
would have even more agreement in spirit than
in words. That was the way it was at Bretton
Woods. That was the way I felt it would be at
Savannah. And so it has been.
Although my expectations were high, they have
been fidfilled. more than fulfilled. My colleagues,
I do believe that if we had done no work that could
be reduced to writing, if we had not put the ma-
chinery into operation, oiu" meeting still would
have been of highest value.
I believe this because of the richness of this ex-
perience of meeting together. An experience such
as this gives men much more than pleasure. Their
souls and hearts are lifted and they go away better
men. They become couriers of the good. I am
sure that no one will regard it as sacrilegious if I
say that, when well-intentioned men from 40 coun-
tries get together to work, to give the world a
chance for peace and prosperity, and find that
their hearts beat as one, it is a satisfaction like unto
that religious moment when a man feels that he
is in tune with the purposes of the Divine.
We had all of this and also we did the work that
we came to do. The world Fund and Bank are
now established. They are beginning to breathe.
They are living organisms. These institutions
will give us the advantages of living things, but
in turn they must be given the sustenance and at-
mosphere that make living things grow and
flourish.
They will not live well alone. They need the
company of other intergovernmental institutions
that are helping us to build a better world. They
need the company of wise, courageous, and inter-
nationally honest officials. They need the com-
pnny of people everywhere so that they will not
live as hothouse plants, dying upon exposure to
this practical old world. The institutions need
all of the care, attention, and nourishment that we
and others can give them.
All of us intend that they should have a strong
and illustrious career. Let each of us resolve as
we leave Savannah that we shall continue to do
our part. I have confidence in the Fund and
Bank, because I have confidence in you and in the
good people of every nation from which you come.
Made at the closing plenary session of the Savannah
conference on Mar. 18, 1946. and released to the press on
the same date. Mr. Vinson Is the Secretary of the U. S.
Treasur.r.
Fourth Council Session of UNRRA
STATEIMENT BY THE REPRESENTATIVE OF THE UNITED STATES
The magnitude of the task facing UNRRA in
the coming months would be difficult to over-
emphasize. The United States, which has con-
tributed so extensively to the work of this great
international organization, remains and will re-
main keenly sensitive to the needs of those millions
suffering from the ravages of war and its after-
math. The humanitarian instincts which are an
inherent part of the American character would
permit us to follow no other course.
However, it is well to recall that UNRRA was
conceived and established to meet an emergency
situation. It always has been intended that its
primary relief activities should terminate as soon
as possible. Accordingly, the Council last Au-
Made on Mar. 17, 1946 on behalf of Assistant Secretary
conference on Mar. 18, 1946 and released to the press on
Secretary of State William Clayton and first alternate on
the U. S. Delegation, and released to the press on the same
date.
528
DEPARTMENT OF STATE BULLETIN
gust adopted Kesolution 80 reliitin<i; to the termi-
nation of its activities. The United States pro-
ceeded under that Resohition to present the recom-
mendation for a second contribution to the United
States Congress. The Congress by its action last
December authorized the United States to make a
second contribution of $1,350,000,000.
Of course, no one has ever contended that
UNRKA alone could solve all the economic ills of
a post-war world or that large-scale programs of
relief could be continued indefinitely. Our ex-
pectation has been that, with the funds now
pledged to U^RRA by the contributing govern-
ments, the receiving countries would find it possi-
ble— by the maximum development and use of
their own resources and with the assistance of the
International Fund and Bank which have just
been organized — to carry on without further
UNRRA aid. That surely is the objective of
everyone.
Some of the activities of UNRRA may require
continuation longer than others. This is a prob-
lem for the consideration of the United Nations
Organization. We understand, hoM-ever, that it
is not contemplated that UNRRA will continue
beyond the period now established.
Status of World Fund and Bank Agreements
The signature and deposit of instruments of ac-
ceptance of the Articles of Agreement of the
International Monetary Fund and the Articles of
Agreement of the International Bank for Recon-
struction and Development (Bretton Woods
Agreements) on behalf of the Governments of El
Salvador, Nicaragua, and Panama on March 14,
1946 and the deposit of the instrument of accept-
ance of those agreements on behalf of the Govern-
ment of Cuba on the same date brings to a total
of 38 the number of governments on behalf of
which the Fund agreement has been signed and
accepted and to a total of 37 the number of gov-
ernments on behalf of which the Bank agreement
has been signed and accepted. As of March 22,
1946 signatures have been affixed and instruments
of acceptance deposited on behalf of the Govern-
ments of the following countries :
Government Date of signature
Belgium Dec. 27, 1945
Bolivia Dec- 27, 1945
Brazil Dec. 27, 1945
Canada ........ Dee. 27, 1945
Chile Dec. 31, 1945
China Dec. 27, 1945
Colombia (Fund agree-
ment only) Dec. 27, 1945
Costa Rica Dec. 27, 1945
Date of deposit of
instruments of
acceptance
Dec. 27, 1945
Dec. 27, 1945
Jan. 14, 1946
Dec. 27, 1945
Dec. 31, 1945
Dec. 26, 1945
Dec. 27, 1945
Jan. 8, 1946
Date of deposit of
instruments of
Government Date of signature acceptance
Cuba Dec. 31, 1945 Mar. 14, 1946
Czechoslovakia Dec. 27, 1945 Dec. 26, 1945
Dominican Republic . . Dec. 28, 1945 Dec. 28, 1945
Ecuador Dec. 27,1945 Dec. 28,1945
Egypt Dec. 27,1945 Dec. 26,1945
El Salvador Mar. 14, 1946 Mar. 14, 1946
Ethiopia Dec. 27,1945 Dec. 12,1945
France Dec. 27, 1945 Dec. 27, 1945
Greece Dec. 27, 1945 Dec. 26, 1945
Guatemala Dec. 27, 1945 Dec. 28, 1945
Honduras Dec. 27, 1945 Dec. 26, 1945
Iceland Dec. 27, 1945 Dec. 27, 1945
India Dec. 27, 1945 Dec. 27, 1945
Iran Dec. 28, 1945 Dec. 29, 1945
Iraq Dec. 27, 1945 Dec. 26, 1945
Luxembourg Dec. 27, 1945 Dec. 26, 1945
Mexico Dec. 31, 1945 Dec. 31, 1945
Netherlands Dec. 27, 1945 Dee. 26, 1945
Nicaragua Mar. 14, 1946 Mar. 14, 1946
Norway Dec. 27, 1945 Dec. 27, 1945
Panama Mar. 14, 1946 Mar. 14, 1946
Paraguay Dec. 27, 1945 Dec. 28, 1945
Peru Dec. 31, 1945 Dec. 31, 1945
Philippine Common-
wealth Dec. 27, 1945 Dec. 21, 1945
Poland Dec. 27, 1945 Jan. 10, 1946
Union of South Africa . . Dec. 27,1945 Dec. 26,1945
United Kingdom .... Dec. 27, 1945 Dec. 27, 1945
United States Dec. 27, 1945 Dec. 20, 1945
Uruguay Dec. 27, 1945 Mar. 11, 1946
Yugoslavia Dec. 27,1945 Dec. 26,1945
MARCH 31, 1946
529
American Mission to Observe
Greek Elections
[Released to the press IMarcli 19]
At liis press and radio news conference on March
10 the Secretary of State made the following state-
ment in reply to the question, '"What about the
Greek elections : will they take place on March 31
as scheduled?"
"As friends of the Greek people, we are inter-
ested in seeing tliem elect a representative Govern-
ment. We believe that only when the Greek people
have freely expressed their will at the polls, and
the Government of their choice has taken office,
can the work of reconstruction, which is so vital
to the welfare of Greece, go forward satisfactorily.
Accordingly, this Government wovdd like to see
fair and free elections held in Greece at the earliest
practicable date. The timing of the elections is,
of course, a matter for the Greek Government
alone to decide.
''The American Mission to observe the Greek
elections has completed its preparations, and, to-
gether with its British and French counterparts,
will be at posts throughout Greece ready to dis-
charge its observation function on March 31, the
date which the Greek Government has set for the
elections. This Government has absolutely no
partisan interest in Greek afl'airs. It sincerely
desires that the Greek elections be carried out by
the free suffrage of the entire electorate."
Arrival of Trygve Lie in U. S.
[Released to the press March 20°
]\fr. Trygve Lie,^ Secretary-General of the
United Nations, called on the Secretary of State
on March 20 and discussed with him the plans for
the functioning of the United Nations Secretariat
in its temporary, and later its permanent head-
quarters in this country.
Secretary Bj'rnes said he was heartened by the
efficient manner in which the Secretariat has
already placed itself on a working basis, and by its
i:)lans for future operations.
The Secretary said that the United States Gov-
ernment is fully aware of the privilege and respon-
sibility of being permanent host to the United
Nations. He expressed his satisfaction that the
continuous functioning of the Secretariat would be
under the capable direction of Mr. Lie.
The Secretary renewed to Mr. Lie the expression
of his determination to do everything possible to
assure the success of the United Nations in its
indispensable work which lies ahead.
[Released to the press March 18]
Secretary Byrnes said he was particularly happy
to welcome Mr. Lie to this country and that it was
appropriate that the United Nations should have
as its Secretary-General the distinguished citizen
of a nation which was one of the first victims of
Nazi-Fascist aggression. He said the United
Nations is particularly fortunate to have the serv-
ices of Mr. Lie, whose integrity and objectivity
have won him universal acclaim.
Soviet-Iranian Matter for
Security Council Agenda
Letter handed to Mr. Lie hy Alger Hiss ^
Department of State
March 20, 19Jfi.
My Dear Mr. Secretary General:
I have received your letter of March 19th in-
forming me of the action of Iran in filing with
you the two letters of March 18, copies of which
you enclosed.
Under instructions from my Government, I
wish to inform you that when the Security Coun-
cil reconvenes I shall move:
(1) That consideration of the letters filed by
Iran be placed at the head of the agenda of the
Security Council.
(2) That, in connection with the consideration
of these letters, Iran and the U.S.S.R. be requested
to report upon the negotiations which may have
taken place between them in accordance with the
Resolution of the Council adopted January 30,
1946.
Sincerely yours,
Edward R. Stettinius, Jr.
United States Representative to the
Vmted Nations
" Trygve Lie arrived in Wa.shington, D. C, by plane on
Mar. 18. He was met at the airfield by several State
Department officials and driven to the Blair House, where
he resided with members of his party until he left for New
York on Mar. 21.
'Director, Office of Special Political Affairs, Depart-
ment of State.
Report on the First Session of the United Nations General
Assemhly
LETTER OF TRANSMITTAL TO THE CONGRESS
To THE CoNGIiE.S.S (IF THE UxiTED StATES :
I transmit herewith foi' the information of the
Conpress a copy of the Keport on the activities of
the American Delegation to tlie First Part of the
First Session of the General Assembly of the
Fnited Nations in London. England. January 10-
February 14, 1!M6. submitted by the Secretary of
State to the President of the United States under
date of March 1, 1946.
The pai'ticipation of the American representa-
tives in the actual establishment of the institutions
provided in the Charter of the United Nations,
and in the initial work of the General Assembly
regarding the urgent problems confronting the
51 ]\Iembers of the LTnited Nations today is vital
to all Americans.
The United States supports the Charter. The
Ignited States supports the fullest implementation
of tlie principles of the Charter. The I'nited
States seeks to achieve the purposes of the Charter.
And the United States seeks to perfect the Charter
as e.xperitnce lights the waj'. To do less than our
utmost in this essential effort of peace-loving
nations, whatever may be the obstacles and diffi-
culties, would be a betrayal of the trust of those
who fought to win the opportunity to have a world
at last with [leace and security, and well-being, for
all. To do our utmost will be to give new and full
expression to the meaning of "America"' to the
world.
I connnend to the attention of the Congress the
enclosed report as constituting the Record, briefly
told, of the part taken by our representatives in
the progress so far made by the United Nations,
now established and at work.
Hakry S. Truman
Tilt; ^Vjirnc Hoi'se,
March 1[K 19J,G.
LETTER FROM THE SECRETARY OF STATE TO THE PRESIDENT
DErARTJIENT OF StaTE
Washington
March /, 101,0
The President:
I have the honor to transmit my Report on the
activities of the Delegation representing the United
States at the First Part of the First Session of the
General Assembly of the United Nations held in
London from January 10 to February 14. I also
enclose a copy of this Report with the suggestion
530
that you may wish to forward it to the Congress
for its information and for the information of the
American people. ,;
The first formal session of the 51 nations united
under the Charter adopted at the San Francisco
Conference last June ends a long chapter of prep-
aration for peace carried out even in the midst of
The complete report is printed a.s The United States and
the United Nations, Department of State publication 2484,
Conference Series 82.
MARCH 31, 1946
531
war. It opens a new cliapter of active collabora-
tion of tlie United Xations for the maintenance
of the peace finally won after that Conference and
for the encouragement of relations and the promo-
tion of conditions conducive to peace throughout
the world.
The first step along tliis road took place only
three weeks after Pearl Harbor when, on Januai'v
1, 194'2, the United Nations Declaration was signed
at the White House pledging the 26 governments
then signatory to the Declaration to cooperate to
win the war.
Next began a series of special United Nations
conferences called on specific matters which seemed
ripe for discussion sucli as Food and Agriculture,
Relief and Rehabilitation, Monetary and Finan-
cial Cooperation. Civil Aviation, and Educational.
Scientific, and Cultural Cooperation, which l)y the
present date has resulted in the establishment of
a group of specialized international organizations.
In October of 1943, the necessity of establisliing
a general organization for the maintenance of in-
ternational peace and security was recognized at
the Moscow conference of the Foreign Ministers
of the United States, the United Kingdom, and
the Soviet Union, and their wide and decisive
measure of agreement in principle, iu whicli China
joined, was announced in the Declai'ation of
Moscow.
In the autumn of 1944, re]5resentatives of these
jjowers met at Dumbarton Oaks and agreed upon
definite proposals for a general international or-
ganization to maintain international jwace and
security and to promote the general welfare.
Then followed the Yalta Conference in Febru-
ary, 1945. There the Dumbarton Oaks Proposals
were completed by agreement on voting procedure
in the Security Council agreed upon by the United
States, the United Kingdom, and tlie Soviet
Union, and subsequently China.
Shortly thereafter the meeting of the United
Nations was called, and in a nine-week conference
at San Francisco beginning April 25, 1945, unani-
mous agreement was leached upon the Charter of
the United Nations, which was signed on June 26
and immediately submitted for ratification. Dur-
ing the succeeding summer and autumn, a Pre-
paratory Commission and its Executive Conunittee
translated the terms of the Charter into detailed
recommendations for the establishment of the
various organs of the Organization. With the
Charter in effect October 24, and ratified by all 51
Members by December 27, the General As.sembly
was called for January 10 to take final action to
bring the Organization into being.
The United States representation at this First
Part of the First Session of the General Assembly
in London continued, as at San Francisco, to be
In-oadly representative and non-partisan. It con-
tained members both of the Senate and House of
Representatives and officials of the various Execu-
tive Departments concerned, as well as important
persons in the two principal political parties.
The Delegation, appointed by you with the con-
sent of the Senate, was headed by me as Senior
Representative until my departure on January 25,
and thereafter by the Honorable Edward R. Stet-
tinius, Jr., the Representative of the United States
at the seat of the United Nations, who also repre-
sented the United States on the Security Council.
Senator Tom Connally, Senator Arthur H. Van-
denberg and Mrs. Franklin D. Roosevelt also
served as Representatives. The five alternate Rep-
resentatives were Representative Sol Bloom, who
served as a Representative on the Delegation after
January 25, Representative Charles A. Eaton, Mr.
Frank Walker, former Senator John G. Town-
send, Jr., and Mr. John Foster Dulles. The
United States was represented on the Economic
and Social Council by the Honorable John G.
Winant, Ambassador to the United Kingdom, who
was appointed to serve during tiie organizing
meetings of this Council in London.
The Representatives were assisted by five Senior
Advisers, Mr. Benjamin V. Cohen, Mr. James
Clement Dunn, Mr. Green H. Hackworth, Mr. Leo
Pasvolsky, and Mr. Adlai E. Stevenson, by a prin-
cipal adviser. Mr. Alger Hiss, and by a number of
highly qualified general and special advisers and
assistants from the Departments of State, War and
the Navy, and other parts of tlie Government.
It was the constant effort of each of the members
of the Delegation to cari'y out your general instruc-
tion to demonstrate the wholehearted support
which the United States Government is pledged to
give the United Nations Organization. The devo-
tion of all to the full discharge of tlie responsibili-
ties of the Delegation is commended more ade-
quately by the record of accomplishment than it
could be by words here.
I particularly wish, also, to voice the deep ap^Dre-
ciation of the entire Delegation for the exceptional
532
DEPARTMENT OF STATE BULLETIN
efforts made by the British Government and
people, despite the shortage of supplies and hous-
ing created by the war, to provide every possible
comfort and convenience for the great assemblage
of Delegates from many lands and to extend to us
the hospitality and welcome for which the British
Isles are famous.
The First Part of the First Session in London
was intended to be primarily organizational. Its
main purpose was to set up the various organs of
continuing collaboration provided for in the Char-
ter; it was not anticipated that many matters of
substance would be considered at the same time as
the work of establishment was being undertaken.
It was felt that substantive problems could be
handled in a more orderly and effective way, after
careful preparation, in the Second Part of the First
Session.
However, the profound dislocations which the
war has caused throughout human society per-
mitted no such systematic development. The
Organization was confronted even before it was
organized by problems of two types : first, broad
problems of concern to many States or to the whole
world, such as the food crisis, the control of atomic
energy, trade and employment, health, and refu-
gees; and second, specific problems such as Spain
and the country problems dealt with by the Secur-
ity Council concerning Iran, Greece, Indonesia,
and Syria and Lebanon. Constructive practical
actions had to be considered and agreed upon.
These circumstances demonstrated in fact how
thoroughly justified had been the long-held feel-
ing that it was imperatively urgent to establish the
United Nations Organization at the earliest pos-
sible moment.
It is difficult and even hazardous to attempt an
immediate assessment of such a large midertaking
which inevitably covered many subjects and
touched upon wide and complicated considerations.
I believe, however, and I think my views are widely
shared, that these unexpectedly hard tests encoun-
tered even before organizing problems could be
solved wei'e met with courage, with success, and
with hope for the future. The Organization was
effectively established and substantive problems
were faced with frankness and resolution. The
participating nations demonstrated by their firm-
ness of expression in the discussion, the weight
they attach to the Organization and to the decisions
reached.
We have taken a constructive step on the long
road to peace and all that peace can bring to man.
That step, though a modest one, has been strong
and sure. The next one can take us further. How
well we can advance on the way will depend, as I
said to the Assembly on January 14, upon the sup-
port given the LTnited Nations by the govei'nments
and peoples which compose it. Their support
shoidd be forthcoming because their common in-
terests far outweigh any conflict in interest that
might divide them.
The United Nations is now a going concern. Its
princijDal organs and their working bodies have
begun to function. The general area of its home
site in the United States has been fixed, and its
permanent staff is even now arriving on our shores
to establish the teinporary headquarters in New
York City and to plan for the permanent head-
quarters in the area of Westchester and Fairfield
Counties. The rhythm of regular activities and
meetings is beginning.
During the meetings in London, the following
organs and suborgans provided for in the Charter
were duly established :
The General Assembly, the meeting at least
annually of all Member States, elected its officers,
apiaroved its Provisional Rules of Procedure, and
in 33 public plenary sessions served both as a con-
stituent body to call into being the other organs
and as a deliberative body to discuss matters of
general policy and interest.
The Security Council, the organ composed of
eleven members, with primary responsibility for
the maintenance of international peace and secu-
rity, and so organized as to fvmction continuously,
was confronted almost immediately with problems
concerning Iran, Greece. Indonesia, Syria and
Lebanon, and dealt with them as well as with cer-
tain organizational matters in 23 meetings.
The Military Staff Comjiittee, the military
body consisting of the Chiefs of Staff of the five
permanent members of the Security Council or
their representatives, which is to advise the Secu-
rity Council on all military matters, took the
necessary steps to organize itself and is ready to
proceed to substantive work as directed by the
Council.
The Economic and Social Council, a principal
organ composed of 18 members offering great pos-
sibilities for the advancement of human well-being,
established in 13 meetings a number of important
MARCH 31, 1946
533
commissions and committees and began its first
substantive work witb decisions to call two world
conferences to establish permanent international
organizations in the vital fields of health and trade.
TiiK IxTEUNATioNAL CouRT OF JiTSTicE, the prin-
cipal judicial organ of the United Nations, com-
posed of fifteen Judges duly elected by the General
Assembly and the Security Council, with its per-
manent seat at The Hague, is scheduled to convene
on April 3rd next.
The Secretariat, the permanent international
staff of the Organization, with its provisional
structure, regulations and budget approved by the
General Assembly, is already' in process of build-
ing its organization under the first Secretary-
General.
The only major organ provided for in the Char-
ter which it was not possible to set up at this Fii-st
Part of the First Session was the Trusteeship
Council. This was due not to lack of desii-e but to
the fact that, although necessary negotiating steps
by the states directly concerned are under way
relative to certain mandated territories, these
negotiations have not yet reached the point where
the terms of the Charter for the establishment of
the Council can be fulfilled. There is reason to
expect, however, that this can soon be done. Fur-
thermore, the General Assembly has shown active
interest in information to be received in the mean-
time from all states administering non-self-gov-
erning territories relating to the economic, social
and educational conditions in such of these ter-
ritories as are not trust territories.
Although not named in the Charter as a piin-
cipal organ — the atomic age had iiot been entered
when the Charter was prepared — the Commission
ON Atomic Energy calls for special mention. It
is with a feeling of gi-atification, indeed with a
feeling that a great step forward has been
achieved, that I can say that the proposal agreed
upon in the meeting of the Foreign Ministers of
the United States, the United Kingdom, and the
Soviet Union at Moscow in December 1945, for a
special Commission to deal with this awesome
problem, was accepted unanimously by the United
Nations Assembly, and that the carrying out of the
great responsibilities of the Commission will now
begin as soon as the Commission can meet in the
United States.
Many other decisions essential t>o the orderly
working of the new organization or important in
specific fields of interest were taken during the
five-weeks session. The views expressed by the
United States Delegation, as well as the positions
to which the United States was elected in the Or-
ganization, will be found with a minimum of de-
tail in the following pages of this Report relating
to the General Assembly, in the separate reports
to be transmitted later by the United States Rep-
I'esentatives on the Security Council and on the
Economic and Social Council, and, with full de-
tails, in the publications of the United Nations.
We are entitled to feel encouraged by this con-
stituent meeting of the General Assembly of the
United Nations. Though inevitably no nation was
fully content with everything done, all seemed to
feel that substantial progress had been made to-
ward orderly human relations and peace amongst
nations. Despite all the difficulties, differences
and sometimes irritations in so large a gathering
where representatives of most of the world's na-
tions met in almost constant session all day and
many evenings throughout five weeks, the net re-
sult of this initial session has been to provide for
the peace-loving nations a working center of
cooperation.
The program of international activity immedi-
ately in prospect is heavy, and will demand a wide
range of participation by the United States. The
Security Council is expected to resume its meetings
about March 21 at the temjjorary site in New York
City; the Military Staff Committee will meet at
the same time and place; the Economic and Social
Council will meet May 25 ; the International Court
of Justice will convene April 3 ; the Commission on
Atomic Energy will meet at an early date; the
International Health Conference will convene not
later than June 20; the International Trade and
Employment Conference will be called during the
year ; and the Second Part of the First Session of
the General Assembly will open September 3, while
a number of the commissions and committees of
the Assembly and of the Economic and Social
Council, on which the United States is represented,
will be at work throughout the coming months.
Not only will many of the above-mentioned
meetings and activities take place in the United
States but, in particular, there will be established
here the permanent home of the United Nations.
This represents an unprecedented honor for a
country which only yesterday, as history is writ-
534
DEPARTMENT OF STATE BULLETIN
ten. was virgin territory univnown to the rest of the
world. It also throws upon the American people
a great responsibility, which will require us to live
up to the best and finest in the American tradition.
It will be a new experience for us not only to be a
part of, but still more to be the host to, a permanent
Organization of world-wide cooperation. We will
want to be generous in our hospitality and under-
standing in our relations.
May the thought and action of each and all of us
match this responsibility in order that we may
make our fullest contribution toward assuring that
the peoples of the world may have the peace and
well-being which they so desperately crave after
history's most terrible war.
Respectfully submitted,
James F. Byrnes
Secretary of State
Enclosure :
Report *
The President
7' he White House
Disposition of Philippine Collaborationists
STATEMENT BY THE PRESIDENT
[Released to the press by the ^A'hite House March Hi]
On October 26, 19-1:5, I addressed a directive
to the Attorney General requesting that a study
be made of the status of those who collaborated
with the enemy in the Philippines.
I have received reports from the Attorney Gen-
eral, from the Secretary of War, and from High
Commissioner Paul V. McNutt on this subject.
After studying the reconmiendations submitted
lo me, I have determined that there is no necessity
for any change in our established policy of leaving
the disposition of civil collaborationists in the
Philippines to the civil authorities there.
Our original policy was formulated late in 1944
on the basis of strong recommendation by General
Douglas MacArthur and was initiated by the Joint
Chiefs of Staff. In support of that jiolicy, there
was formed in the Philipi)iiies last year a civil
People's Court to try collaborationist cases. The
study recently made by officials of this Govern-
ment of the manner in which the collaboi-ationist
cases have been handled indicates an earnest and
well-directed effort to dispose of these cases as
speadily as possible.
There are major obstacles such as the unavail-
ability of witnesses, disruption of communications
and lack of funds for investigation, transporta-
tion, and clerical assistance which make it ex-
tremely difficult for the People's Court to assure
speedy justice. Neverthek'ss, I have every con-
fidence in the determination of the Philijipine
people, who have proved beyond all doubt their
' Not printed.
devotion to democracy and the United States, to
punish those who served the enemy against the in-
terests of the Commonwealth and of the United
States. The principle is well established in the
Philippines that an act of disloyalty to the United
States was an act of disloyalty to the Common-
wealth and to the Philippine people. The Philip-
pine courts have accepted this principle.
It is noteworthy that we have not been asked
by any group in the Philippines to intervene in the
trial of the coUaborators. It is my judgment that
any move to intervene now would meet with in-
stantaneous objection from even our most loyal
supporters in the Islands. Such intervention
would serve notice upon the Philippine people, and
upon the many millions of people everywhere who
are watching the Philippine experiment, that we
do not consider the people of the Philippines capa-
ble of bringing these culjirits to justice.
The Philippines are scheduled to become an in-
dependent republic on July 4 of this year. I am
certain that the Philippine people are fully capa-
ble of assuming all the duties and obligations of
self-govei'nment. I believe that these heroic peo-
ple, out of their own devotion to democratic ideals,
will eliminate from their national and political
life all those of questionable allegiance to those
democratic principles.
In arriving at these conclusions, I am assuring
the Philippine people that we have every con-
fidence that they are capable of making their own
l^olitical decisions without intervention or direc-
tion by the United States.
MARCH 31, 1946
535
Purposeful Peace
By ASSISTANT SECRETARY BRADEN
Mr. Chairman ; Gentlemen : For the honor you
do me by your presence, for the gracious hospital-
ity of the National Democratic Club, and for tlie
joy afl'orded me by again greeting so many old
and good friends, I am grateful. This gratitude,
added to an instinctively hopeful nature, impels
me to seek for the brighter shades wliich can be
found in the picture of our times, even though in
the aggregate that picture now is sombre.
Also I am inspired toward a more optimistic
approach to the problems of world affairs when I
recall, as it is entirely fitting to do in these sur-
roundings, the countless obstacles, threats, and
attacks which have been faced, fought, and even-
tually conquered by American democracy. Those
victories have been won because the American peo-
ple have known the direction in which they wished
to go and the means by which they planned to
arrive at the goal. Those victories resulted from
courageous and intelligent action and from our
consistently expanding the area of democratic
operations. As these methods have succeeded
within the nation, so may they prosper in the in-
ternational field.
Hostilities have ceased and there lies before us
the vast, unexplored domain of a world on the
threshold of peace. This is the new frontier to
which the road of our destiny has led us. We
stand upon this frontier with the opportunities,
one might even say rights, granted us by our re-
cent victory and its terrible cost; and as a result
our position in the world is firmer and more in-
fluential than ever before. At the same time, we
have been obliged to assume corresponding respon-
sibilities. We did not seek those rights and re-
sponsibilities; neither did we deliberately attempt
to attain that influential position. Circumstances
and, above all, our perseverance and faith in the
ideals which we defended brought those rights and
responsibilities and that position to us. They
came upon us impregnated with the horror of the
tragedy in which we were forced to participate;
they inevitably ensue from the victory. We must
now accept the fruits of past sacrifices with the
same equanimity and abnegation with which we
accepted adversity. If we neglect those fruits,
they will wither and die; if we cherish and pro-
tect them, they will ripen and the rewards will be
great. It is in this spirit that we must accept
the heavy burden of our new responsibilities.
Are we prepared to assume fully those respon-
sibilities? If it is true that this new position of
leadership brings us face to face with extraor-
dinarily complex problems without precedent in
our history, it also is true that in the past we have
solved great and difficult problems. That we did,
because the entire nation devoted its energies, ini-
tiative, and resources to the task with the incen-
tive of common duty. War for us is abhorrent
and a phase of human activity we would eliminate
from the face of the earth. Conquest by aggres-
sion has not been the impelling motive of our
international conduct. Nevertheless, when foreign
aggression forced us to fight, our participation in
the conflict was decisivelv victorious. If we have
been able, then, to determine our course in an
undertaking which is in conflict with the tradi-
tional character of our people, there is even greater
reason for confidence in the attainment of a pur-
poseful peace under American leadership.
Our task would be easy if peace were a simple
suspension of a state of war. Peace is moi-e than
that, infinitely more. Peace to be purposeful must
be active, not passive. The concepts of peace and
progress, therefore, are inseparable. Progress is
difficult or even impossible for anyone who, not
knowing where he is going, is obliged to drift
where circumstances carry him. We must know,
then, where we wish to go; what is our ideal and
possible goal ; and by what road we hope to reach it.
The adherence of our country to the United Na-
tions and the great principles for which it stands
is a jjositive and propitious step. Through the
voices of President Truman and of an overwhelm-
ing nmnber of members of Congress and Govern-
An address delivered before the National Democratic
Club in New York, N. Y., on Mar. 23, and released to the
press on the same date.
536
DEPARTMENT OF STATE BULLETIN
ment officials, the United States lias made its
position nnmistakabl}' clear. Our full support
will be given to the United Nations in an eilort —
in which all nations must join in good faith — to
constitute a world organization endowed with
sufficient authority and force to prevent the un-
ruly, the suspicious, or those who mistakenly be-
lieve or liold themselves out to be threatened, from
precipitating war. Our people also have repudi-
ated any attempt to divide the world into spheres
of influence. Such a division could only lead to an
unstable equilibrium whicli tlie smallest incident
might easily upset.
All of this is basic, but it is only a part of what
should be our plan for a future course of action.
It is a partial answer to tlie questions of where we
wish to go and of how we hope to reach our goal.
Within a country such as ours, the existence of
laws respected by all and of a government which
is obeyed by the immense majority and wliich has
the necessary means to exercise its authority are
not enough, by themselves, to assure the internal
peace and stability of the nation. That jjeace and
stability rest upon a firmer foundation. They rest
upon the well-being and relative contentment of
the people, upon the vohmtary disposition of the
majority to settle peacefully all great or small con-
flicts of interest which may arise.
How can that firmer foundation be extended to
the rest of the world through a substantial and
generally applicable program of action?
When this question has been asked before— and
it has been asked repeatedly during recent years —
some have replied: "The American way of life."
Others, closer to the mark, suggested democracy
as the answer.
No one is readier tlian I am to recognize the
excellence of our way of life and tlie patriotism
of those who jjropose it as a ])anacea for the ills
of the world. Furthermore, since I am profoundly
American in my feelings, ideas, desires, and habits,
I must declare that I do not believe it would be
possible for me to be happy under a system of life
radically different from that under whicli my
nature and character have been formed. Never-
theless, we cannot be at all sure that what consti-
tutes our happiness will constitute the happiness of
our neighbors. My natural ]iredilections do not
carry me to the extreme of such a conclusion. Also,
the very fact that that way of life is, by definition,
American inevitably invites other countries to ic-
gard it as unadaptable to their individual char-
acteristics and entirely different living conditions.
However, the practice of democracy in its broad
sense is, in my opinion, the indicated basis for our
action.
In general terms, we may define democracy as
the type of social organization which serves
peoples as a means of carrying on their activities
freely but within a framework of law which they
themselves have deliberately and voluntarily
formulated. It assumes (let it again be stated)
that man is inherently capable of self-government
and that government must rest upon the consent
of the governed. It conceives of government as
existing to serve the people and not to control the
individual beyond the imposition of restraints ac-
cepted by the majority as essential to the preserva-
tion of human liberties, order based on law, and
the general welfare. Democracy means political
and economic freedom for every human being,
limited only by those restrictions accepted by the
majority in the form of law to prevent violent con-
flict between individuals and groups within the
community and nation. The main objective of
democracy is the protection of the human being
and the provision of liberty and necessary op-
portunity for the fullest development of his facul-
ties and energies.
Furthermore, democracy is a means for collec-
tive action which, by its own free and flexible
character, does not adhere to the rigid maintenance
of the status quo.
What, at the inception of our Nation, was only
an idea in the minds of a few men and a reflection
of their free will would not have become the
reality of today had it not been for their clear
vision and democratic resolution. Those who fol-
lowed showed equal audacity. We need only
glance at the history of our country to realize the
gradual but constant evolution of our political,
economic, and social life, and the determination
of the American jieople, at every point along the
way, not to accept current reality as a final and in-
evitable end. Their former experience served
them in the creation of new forms and ideas, and
these in turn inspired the people to fix for them-
selves new and ever more ambitious objectives.
That is the American spirit in internal affairs
and in scientific investigation. In contrast, our
action in the field of foreign affairs, unfortunately,
has too often been weakened by a narrow and con-
trary approach. The instinctive American atti-
tude in domestic problems is one of mutuality.
MARCH 31, 1946
537
We ask ourselves what is expected of us and how
we can satisfy that expectation by our work,
initiative, and resources. Tliere is a generous
measure of desire to contribute in tlie most effec-
tive and prompt manner to the common good.
When it comes to external affairs, however, our
instinctive i-eaction is traditionally skeptical.
Consequently, we are inclined to be overly cautious
and vacillating. The alien aspect of the outside
world is magnified in our minds and prompts us
to conjure up visions of contagious peril. Such
a suspicious apjiroach automatically throws us
back on ourselves and puts us on the defensive.
If we wish to carry out, with benefit to ourselves
and to other jjeoples, the task tliat our present re-
sponsibility imposes upon us, we must adopt an
attitude in our relations with the world that is as
frank and determined as the manner in which we
face our internal problems. We must accept our
full measure of responsibility and leadership. In
that way we may project into the world outside
our borders those achievements made by our peo-
ple under the stinmlation of the free and con-
stantly renewed play of democratic institutions.
I do not propose that the United States convert
itself into a welfare institution dispensing gifts.
Those gifts might be rejected or might be accepted
with more jealousy than gratitude. When some-
thing is given for nothing, it is in the last analysis
valued by the recipient at precisely nothing.
What I do propose is that we make collaboration a
guiding ]irinciple of our international actions,
that in each case we seek that type of concrete col-
laboration in which each participant contributes
in fair measure proportionate to the means at his
disposal. It will be helpful if we demonstrate to
the world that what our people have accomplished
under our way of life and our system of democracy
is not due merely to generous gifts showered upon
them by a bounteous nature, but is the fruit of in-
dividual and collective initiative freely and coop-
eratively developed.
The United States will do its full share, but
our contributions will be fruitless unless there is a
sincere will to cooperate on the part of all. We
can assist other peoples to share in our progress
in the fields of science and industry. Without
seeking to impose our own particular form of
democracy, we can make clear the great blessings
of the civil and individual liberties which we have
attained, and we can encourage and aid other peo-
ples who wish to win similar liberties for them-
selves. Our cooperation in technical fields, in
public health, improved standards of living and
working conditions, education, agrarian and social
reform, agricultural experimentation and soil,
conservation, and in many similar enterprises can
prove helpful to others while simultaneously
bringing substantial benefits, tangible and intangi-
ble, to our own people.
The charge has been made that in our fervor
for individual rights and civil liberties the eco-
nomic content of democracy has been neglected.
To make such an accusation against a counti-y
which has worked for and established the wide-
spread aiid high standards of living we enjoy is
patently ridiculous. Moreover, we have made a
substantial start in applying economic considera-
tions to world affairs through our initiatives in
respect of free trade, the Bretton Woods organ-
ization, UNRRA, the operations of the Export-
Impost Bank, and in many other ways. It is our
earnest desire to continue and improve upon those
cooperative endeavors. As in the case of all new
undertakings, we have had to feel our way; but
progress has been made; we expect to benefit from
experience and, above all, we recognize that a pur-
poseful peace must rest on the establishment of
solid economic foundations throughout the world.
The successful experience and the proven in-
struments of action which we possess will mount
in effectiveness, the wider their radius is extended.
We can learn from others as tliey can from us.
All can prosper from cooperation in each of the
fields I have mentioned, and as the welfare of tlie
world improves so in equal measure will our own.
By these procedures we may safeguard that world
peace and security upon which our own peace and
security must rest.
Fortunately, we have the medium through
which these procedures may be put into effect
already at hand in the establishment and now,
happily, in the functioning of the United Nations
Organization. If there exists among tlie nations
of this world the will to cooperate and the will to
provide a jjurposeful peace, success will inevitably
be ours irrespective of barriers. If, however, some
do not keep the faith or waver in the avowed unity
of purpose, no contribution by any nation or group
of nations can make the machinery function. The
overwhelming majority must maintain and
strengthen that will to act for the conunon good.
Only thus will a purposeful peace be achieved.
538
DEPARTMENT OF STATE BULLETIN
Treaty of Friendship
China-Dominican Republic
Ratifications were exchanged March 2, 19-1:6
in the Dominican Department of State of the
treaty signed June 8, 1945 amending the Treaty
of Friendship between Ciiinu and the Dominican
Republic signed May 11, 1940. The new treaty
amends the old by adding a clause permitting the
free entry of nationals of cither country into the
territory of the other.
PHILLIPS— Co/i /(•»»«■(/ from inigc olf).
problem commodities and to survey the consump-
tion-expansion possibilities of existing outlets and
new uses for the commodities. Intergovernmental
arrangements of this type may actually eliminate
the problem of potential surplus without the ne-
cessity of resorting to restrictive quantitative
regulation of production or trade by providing a
convenient and informal means through which the
p()ssil)ilities of promoting greater stability in the
conditions of production and trade for a particular
commodity may be canvassed and opportunities
for the expansion of demand may be explored.
If, however, after an investigation of its root
causes, it is found that the problem cannot be
solved through the expansion of consumption, re-
sort may be had in isolated cases to a restrictive
commodity agreement nndei- rigid specifications.
Here again the Proposals differ radically from the
restrictive commodity agreements which have ex-
isted in the past. The constructive economic
purposes which earlier agreements might have
served — by correcting the underlying causes of the
maladjustment — were in most cases overlooked in
the urgency of providing inunediate relief to the
distressed producers of the commodity or in many
cases of satisfying the producers' desire for higher
prices. Generally, such agreements were largely
concerned with developing means of restricting
international trade or production in order to pro-
vide a basis for survival for all producers regard-
less of their economic ability to compete. The re-
sults have been that restrictions were imposed
which jjrovided a price umbrella over all producers
restricting the output of the efficient and inefficient
alike.
Fundamental to the new Proposals is the re-
quirement that when governments resort to a re-
strictive intergovernmental commodity agreement
appropriate provision shall be made for providing
increasing opportunities for satisfying world re-
quirements of the commodity from sources which
can supply them most effectively. The production
pattern thus must be shifted to eliminate the least
efficient producers in order that the world supply
of the commodity eventually may be produced by
the lower-cost, more efficient producers.
An equally fundamental change which is em-
bodied in the present Proposals is that consuming
countries, which are largely dependent on imports
of the commodity involved, shall have together, in
any determinations nuule relating to the regula-
tion of prices, trade, stocks, or production, a voice
equal to those largely interested in obtaining ex-
port markets for their production. Most commod-
ity agreements in the past have been agreements
between the governments of producing countries
only. Consuming interests have been seldom, if
ever, adequately represented.
These two factors — shifting production and con-
sumer representation — should do much to elimi-
nate the evils of previous agreements under which
primary emphasis has been on the restriction of
output and the maintenance of prices, with little
effort made to remove the basic causes of the
maladjustment or to consider the position of
consumers.
Intergovernmental commodity agreements nego-
tiated under the auspices of the proposed Interna-
tional Trade Organization would conform to speci-
fied principles and requirements designed to insure
that the effect of the agreements would be remedial
and that the restrictive features would be limited
only in the public interest. With primary empha-
sis on the expansion of consumption and with re-
sort to restrictive measures permitted only under
rigid recjuirements, thereby i)rotecting the inter-
ests of consumers, there is hope that the intergov-
ernmental commodity agi-eement of the future will
be an instrument of constructive readjustment"
rather tlian a device for monopolistic abuse.
MARCH 31, 1946
539
Action To Expand and Free International Trade
By W. G. BROWN
The nations of the work! are emerging from tlie
war with their economies in a highly unsettled con-
dition. Many of them have been ravaged and de-
spoiled by actual hostilities. ^AU of them are
uncertain about the future. War conditions and
shortages of foreign exchange have foi'ced the
building up of trade controls and restrictions to
an unprecedented extent. Great shortages exist in
many countries. The question facing governments
all over the world is whether to take tlie road to-
ward economic self-sufficiency, with foreign trade
tightly restricted and channeled, or whether to turn
toward a liberal system of expanding multilateral
trade.
All experience demonstrates that excessive gov-
ernmental restrictions on international trade mean
less production and smaller supplies of the goods
and services which go into the maintenance of
living standards throughout the world. Only
through opportunity to exchange with each other
the things which each can produce to the best ad-
vantage are the peoples of all countries able effec-
tively to utilize their different productive abilities
and, at the same time, obtain maximum supplies of
the things thej^ need and want.
Many governments would like to take the path
toward liberal trade. It is, of course, the policy of
the United States. But no one or even two or three
of these countries with new governments, prostrate
industry, and a deai'th of foreign exchange is will-
ing to take off its own armor of trade barriers and
controls luiless all or almost all other countries do
likewise, and at the same time.
Recognizing this situation, and in an effort to
break this log jam, the United States Government
on December 6, 1945 sent to the other governments
of the world for their consideration a set of Pro-
Excerpts from an address made before the Exports
Managers Club in New York, N. Y., on Mar. 20, 1946 and
released to the press on the same date. Mr. Brown is
Chief of the Division of Commercial Policy, Office of
International Trade Polic.v, Department of State.
' For text of the proposals, see Bulletin of Dec. 9, 1945,
p. 912.
posals for Expansion of World Trade and Employ-
ment} This document, developed by experts in
the United States Government, is designed to pro-
vide a code of economic conduct, a set of interna-
tional economic rules which, if accepted by a suffi-
cient number of countries, will make it possible for
them to reduce or eliminate the barriers to trade
which they had erected and to seek a liberal mul-
tilateral trading system under which a greater
volume of trade and of production could be
achieved. Each country could do this because it
would know that other countries were doing the
same thing and working toward the same objective.
Few nations, no matter how constructive their
intentions, can afford to scale down their trade
barriers alone, for to do so \v(ndd leave them at
the mercies of countries with less praiseworthy
motives.
We suggested also that a world conference be
held, late this year or early next year, to consider
these Proposals. This suggestion has already been
acted on. The Economic and Social Council of
the United Nations Organization on our motion
has called such a conference.
The Proposals are neither Utopian nor vision-
ary : they have been hammered out in great detail
to meet the actual situation that exists in the world
today. They embody in substance, if not in detail,
the recommendations that have been made by such
representative bodies as the Committee on Inter-
national Economic Policy of the Carnegie En-
dowment, the Council on Foreign Relations, the
National Planning Association, the National
Foreign Trade Council, and the Committee on
Economic Development.
Yet it is quite possible that some other coun-
tries, particularly those whose economies are most
disorganized, may feel that these Proposals are
rather academic, that they are merely a lecture on
economics delivered by the United States, which
is rich and strong and can afford to advocate and
live up to liberal trading policies. They may feel
that a conference to discuss the Proposals would
540
DEPARTMENT OF STATE BULLETIN
simply result in a lot of high-sounding resolutions
without practical effectiveness.
Therefore, the United States Government has
gone further and has hoth taken and recommended
specific, concrete action. It has invited 15 other
countries, including the major trading nations of
the world, to come to a preliminarj' meeting before
the world conference and to discuss the Proposals
and to negotiate concrete reductions in specific
trade barriers. In so far as the United States is
concerned, these trade-barrier negotiations will be
conducted under the authority of the Trade Agree-
ments Act as recently extended, and in accordance
with the procedures required imder the act.
Fourteen of the nations invited have already
acceptetl. If these negotiations are successful and
result in substantial and mutually advantageous
reductions of specific trade barriers, the later world
conference will meet in an atmosphere not of
academic discussion l)ut of real achievement.
Clearly, these Proposals of ours cannot succeed
without the support of the British, and if Great
Britain is able to join hands with us in support of
this enterprise the prospects for the success of the
American trade program will be very good indeed.
Britain exercises a great deal of influence in the
councils of world trade, both in her own right as
the world's largest importer and as leader of an
important group of trading nations, both within
and outside the British Empire. Before the war,
the British Empire accounted for more than a
(juarter of the woidd's trade. About half of tlie
trade among nations was conducted in dollai's and
pounds sterling. In the years innnediately alie-ad,
this figure will be closer to three fourths. No other
coiuitry is nearly so important to us economitally
as is Great Britain. Therefore, during the recent
economic negotiations with the British we dis-
cussed our Proposals in detail, and as a result the
British are in full agreement on all important
points. They have agreed to support our Propo-
sals at the world trade conference in the light of
the suggestions made by other nations.
However, the Briti.sh are at present in a very
difficult situation. They are very short of for-
eign exchange. They had to sacrifice foreign
assets during tlie war in order to get supplies
needed for tlie war effort, particularly during the
period when we were on a cash-and-cari-y basis.
They have lost two thirds of their export trade.
They have a heavy stei'ling debt to other coun-
tries. Their industry has lieen severely thunaged
by war. It will take them time to get back on
their feet. They will have to find some means of
overcoming their foreign-exchange deficit during
this transition period. That is the purpose of the
loan which is currently being debated in the
Congress.
Without this loan Britain cannot carry through
on our Proposals, much as she would like to. She
will have to retain and even intensify her exist-
ing strict controls over trade, retain the sterling-
area dollar pool which has caused so much diffi-
culty to American exporters of certain specific
goods, channel her purchases within the sterling
area, discriminate against American exports, and
take the road leading away from liberal trade
policy to a closed trading system. With the loan,
Britain will be able, and has agreed, to support
our Proposals, to abolish the sterling-area dollar
pool within a year, to make receipts from current
transactions freely convertible after a year, and
to direct her efforts, policies, and plans along the
path of liberal multilateral trade. As Secretary
Byrnes recently said, "the most significant of the
benefits which flow to ns from this phase of these
agreements is the British connnitment to support
the United States trade proposals. By this com-
mitment the British take their i)lace at our side
as our economic allies". This is the most imjior-
tant purpose of the loan, both from our point of
view and that of the British.
Some people have contended that the British
want this loan to help nationalize their indus-
tries. It should be obvious that this is not the
case, that they could use their own currency and
.securities to take over their own industries and
would have no need of foreign money for this
purpose.
If the loan can be said to have any bearing at
all on the question of nationalization in Britain,
it is rather in the direction of creating conditions
favorable to the expansion of private enterprise,
and not of promoting socialization. AVith the
loan, and the assurance it would give them that
they can get through the transition period, the
British wovdd have far less need for the tightly
planned economy which nationalization would
make possible. Without the loan, the meagerness
of their foreign-exchange resources would force
the British to confine trade and business activity
within comparatively narrow limits where dollars
and other currencies of which they are short
(continued uii next page)
MARCH 31, 1946
541
First Report of the Inter-Agency Policy Committee on Rubber
[Released to the press by the White House March 18]
John W. Snyder, Director of War Mobilization
and Reconversion, made public on March 18 the
first report of the Inter- Agency Policy Committee
on Rubber, which he has transmitted to the Presi-
dent and to the Congi-ess. The Committee was
formed by Mr. Snyder in September 1945 for the
{uirpose of formulating a coordinated national
policy on rubber. The Committee, of which Wil-
liam L. Batt is chairman, has representatives from
the following agencies : Department of State, De-
partment of War, Department of the Navy, De-
partment of Justice, Department of Commerce,
Reconstruction Finance Corporation, Office of
Rubber Reserve, Rubber Development Corpora-
tion, and War Assets Corporation. The Depart-
ment of Agriculture, United States Tariff Com-
mission, and Civilian Production Administration
have given technical assistance to the Committee.
This first report, which is a statement of the
general situation and basic issues regarding rub-
ber, makes broad recommendations of policy. A
supplementary report, soon to be prepared by the
Committee, will make more detailed recommenda-
tions, including administrative measures to assure
the use of synthetic rubber, proposals for disposal
of Government -owned plants, and proposals for
continued research and development. Some of
these proposals may require legislative action by
the Congress.
BROW'S— Continued from page 5J,0
would not be needed. This would hardly be an
atmosphere in which private enterprise could be
expected to thrive.
This is a productive loan, working capital being
put into a developing enterprise. The loans we
made to Britain in the last war were largely used
to buy munitions — material that was consumed in
the unproductive enterprise of war — -and then when
the time came for repayment we raised our tariff
against foreign goods three times — in 1921, 1922,
and 1930 — putting up barriers against the goods
with which alone Britain could repay us. Then
came the great depression and default. This time
we do not intend to raise our tariffs, for the Con-
gress has recently renewed the Trade Agreements
Act and, as I have said, we are actively planning
to seek world-wide reduction of barriers to trade
by international agreement. This loan is a produc-
tive loan. It will help the British to produce
goods which we will accept and with which the
loan itself can be repaid. Its use by the British
will work to our advantage and that of other coun-
tries as well as to that of Britain.
So we comeback to the choice, which I indicated
in the beginning, that lies before us and before
the other nations of the world. Shall we work for
expanding multilateral trade, shall we take down
the barriers which inhibit the creative economic
forces of the world, sliall we make it possible for
the other greatest trading nation in the world, our
best customer and natural supporter, to get back
on her feet and stand by our side in developing
the kind of economic world in which we believe,
or shall we withhold the assistance without which
Britain cannot join us? If she does not get this
loan, she must retire within the sterling area, raise
up high walls around it, assume greater control
over her domestic and foreign trade, cease doing
business with the United States except for barest
essentials not available anywhere else, and enter
into a network of special agreements with other
countries in her sphere. If that happens, we might
retaliate. We might try to form a dollar bloc and
fight the sterling bloc. We might, and probably
would, win the battle. But I think it is clear to
everyone in this room that we would all be the
poorer as a result.
542
DEPARTMENT OF STATE BULLETIN
Relation of Poland to Critical Grain Situation
[Released to the press by the White House March 18]
Message from the President of the National Coun-
cil of the Homeland, Polish Provisional Govern-
ment of National Uniti/, to the President of the
United States
The Prime Minister of the Provisional Govern-
ment of National Unity in Poland has been in-
formed b}' the Director General of UNRRA of
the intended reductions in quotas, particularly
grain, for Poland.
This news has taken Poland aback as she is in a
particularly diflicult situation. Domestic reserves
without UNRRA deliveries would force the coun-
try to insufficient bread rations even if planting is
drastically limited and the population of the areas
most strongly damaged by the war is deprived of
supplies. Consecjuently, I am lequesting Your
Excellency, with the cooperation of UNRRA and
the Combined Boards, to assure Poland full real-
ization of tlie miniimun grain delivery program,
which was presented by Poland in an amount of
500.000 tons and at any rate to avoid reducing it
below the 350,000 tons to which the UNRRA ad-
ministration gave its agreement.
Poland has not participated in the grain deliv-
eries from UNRRA in the past as these deliveries
amounted to some thirty odd thousand tons. The
List half year has led to complete exhaustion of
domestic reserves so that today only importation,
in principle on a larger scale than UNRRA would
be prepared to grant, as far as can be judged from
information, would relieve an extraordinarily
serious situation.
At the same time, I am taking the liberty of call-
ing attention to the extreme urgency of the matter
in view of the fact that because of the non-delivery
by UNRRA in February of the expected amounts
of grain, the supply sy.stem now used is being upset
and even large and important urban centers ai'e
depi'ived of regular supply.
Considering that Poland's quota of entire
UNRRA supijlies constitutes only a few percent,
my Government hopes that, with the. friendly co-
operation of Allies, the needs of Poland, which
has suffered so painfully from the wai- and from
tiie pillaging German occupation, will be taken
into consideration in sufficient measure.
Reply from the President of the United States to
the President of the National Council of the Home-
land, Polish Provisional Government of National
Unity
I know that you will realize that UNRRA is an
international organization. Even though the
United States Government contributes 72 percent
to the fund, the United States Government does
not control or attempt to control the administra-
tion of the fund.
I deeply sympathize, however, with the Govern-
ment of Poland in the particularly difficult situa-
tion in which it now finds itself with respect to its
future grain supply. Because of this sympathy
and because of the desire to be helpful if possible.
I have consulted with the Director General of
UNRRA as to the matters referred to in your
message.
The (irovernment of Poland is undoubtedly
aware that the curtailment of supplies provided
to it by the United Nations through UNRRA is
in no way attributable to the action of that Admin-
istration.
The prevailing global scarcity of grain is such
that no gi-ain-importing country, however acute
its needs, can hope to receive in the immediate
future more than a portion of its needs. All
countries have been forced to accept drastic cuts
because of shortages.
The Director General of UNRRA advises me
that the Administration has made every effort to
meet the requests of Poland from the tonnages
available to it within the allocations made to it.
At no time, I am given to understand, has the Ad-
ministration given an undertaking to supply any
specific amount of grain since such an undertaking
would be contrary to the practice of the Adminis-
tration and meaningless in view of the fact that
shiimu'nts are controlled entirely by the amount
made available by the supplying countries.
The Director General of UNRRA has assured me
that he is making every effort to secure supplies to
satisfy the needs of all the countries now depend-
ent on UNRRA, but that the outlook is highly crit-
ical and supplies will undoubtedly fall far below
the level we would all wish to achieve.
MARCH 31, 1946
543
Publications
Department of State
During tlie quarter beginning January 1, 1946,
(he following publications have beeji released by
the Department : '
2392. Preimratory Commission of the United Nations:
Interim Arrangements Between the United States of
America and Other Powers — Signed at San Francisco
June 26, 1945; effective from June 2G, 1945. Execu-
tive Agreement Series 461. 43 pp. lO^t.
2406. Certain Problems of Marine Transportation and
Litigation : Agreement and Exchange of Notes Be-
tween the United States of America and Australia —
Agreement signed at Canberra March 8, I'.i45 ; effec-
tive March 8, 1945. Executive Agreement Series 467.
7 pp. 5if.
2407. Agricultural Experiment Station : Agreement Be-
tween the United States of America and Guatemala
Amending the Agreement of July 15. 194-1 — Signed at
Guatemala March 10, 1945 ; effective March 10, 1945.
Executive Agreement Series 464. 5 pp. ^.
2428. Temporary Migration of Costa Rican Agricultural
Workers : Agreement Between the United States of
America and Costa Rica Approving Memorandum
Agreement Signed May 20. 19-14 — Effected by exchange
of notes signed at San Jose May 29, 1944. Executive
Agreement Series 451. 16 pp. 10^.
2431. General Relations: Agreement Between the United
States of America and Panama — Effected by exchange
of notes signed at Washington May 18, 1942. Execu-
tive Agreement Series 452. 10 pp. 5(f.
2435. Jurisdiction Over Prizes : Proclamation and Agree-
ment Between the United States of America and New
Zealand — Agreement effected by exchange of notes
signed at Wellington November S. 1942 and January
28, 1943. Executive Agreement Series 454. 5 pp. 50.
2436. Cooperative Rubber Plantation Investigations:
Agreement Between the United States of America and
Haiti — ElTeeted by exchange of notes signed at Port-
au-Prince December 29, 1944 and January 8, 1945;
effective January 8, 1945. Executive Agreement
Series 462. 6 pp. 5^.
2442. Covenant of the League of Nations and Charter of
the United Nations : Points of Difference. By Clyde
Eagleton, Department of State. 14 pp. 5<t.
2443. Military Service ; Agreement Between the United
States of America and Peru — Effected by exchange of
notes signed at Washington May 23 and June 12,
1945. Executive Agreement Series 477. 4 pp. 5(f.
2444. The Department of State Bulletin, vol. XIII, no.
3BS, December 16, 1945. 35 pp. 10('.=
244.5. The Department of State Bulletin, vol. XIII, no.
339, December 23, 1945. 46 pp. 10^.
2446. Mutual Aid : Agreement and Exchanges of Notes
Between the United States of America and Turkey —
Agreement signed at Ankara February 23, 1945 ; ef-
fective February 23, 1945. Executive Agreement Se-
ries 465. 12 pp. 5?*.
2447. The Department of State Bulletin, vol. XIII, no.
340, December 30, 1945. 42 pp. 10«;.
3448. Moscow Meeting of Foreign Ministers. Report by
Secretary of State Byrnes and Soviet-Anglo-Ameri-
can Communique. December 1945. Conference Series
79. 18 pp. 10(^.
2449. The Department of State Bulletin, vol. XIV, no. .341,
January 6 and 13, 1946. 47 pp. 10<(.
2450. Soekeye Salmon Fisheries : Agreement Between the
United States of America and Canada — Effected by
Exchange of Notes signed at Washington July 21 and
August 5, 1944. Executive Agreement Series 479.
14 pp. 5^.
2451. Recent Publications of the Department of State,
1946. 4 pp. Free.
2452. Diplomatic List, January 1946. 135 pp. Subscrip-
tion. $2 a year ; single copy 200.
2453. The Department of State Bulletin, vol. XIV, no. 342,
January 20, 1946. 36 pp. 100.
24.54. The Briti.sh Loan— What It Means to Us. A Radio
Broadcast by Fred M. Vinson, Secretary of the Treas-
ury, and Dean Acheson, Acting Secretary of State,
January 1946. Commercial Policy Series 81. 19 pp.
100.
2455. The Department of State Bulletin, vol. XIV, no. 343,
January 27, 1946. 48 pp. 100.
24.56. Our Inter-American Policy. A Radio Broadcast by
Spruille Braden, Assistant Secretary of State, and
Ellis O. Briggs, Department of State. Inter-American
Series 28. 17 pp. 50.
2457. "the defenses of peace" : Documents Relating to
UNESCO, the United Nations Educational, Scientific
and Cultural Organization. Part I. Conference
Series 80. 31 pp. 100.
24.58. The Department of State Bulletin, vol. XIV, no. 344,
344, February 3, 1946. '48 pp. 100.
2460. International Civil Aviation ; Interim Agreement
between the United States of America and Other
Powers — Opened for signature at Chicago December
7, 1944 and signed for the United States of America
December 7. 1944 ; accepted by the United States of
America February S, 1&45, with an understanding ;
effective June 6, 1945. Executive Agreement Series
409. 21 pp. 50.
2461. Prosecution and Punishment of the Major War
Criminals of tlie European Axis; Agreement and
' Serial numbers which do not appear in this list have
appeared previously or will appear in .subsequent lists.
- Subscription, $3.50 a year ; trial subscription for 13
weeks, $1 (renewal only on yearly basis).
544
DEPARTMENT OF STATE BULLETIN
Protocol Between the United States of America and
tlie French Republic, the United Kingdom of Great
Britain and Northern Ireland, and the Union of Soviet
Socialist Republics — Agreement signed at London Au-
gust 8, 1945 ; effective August 8, 1045. Protocol signed
at Berlin October G, 1945. Executive Agreement Series
472. 48 pp. 150.
2462. The Proclaimed List of .Certain Blocked Nationals,
Cumulative Supplement No. 1, February 7, 1946, to
Revision X of December 20, 1945. 12 pp. Free.
24«i3. Air Transport Services: Agreement Between the
United States of America and Norway — Effected by
exchange of notes signed at Washingtcni October 6,
1945 ; effective October 15, 194.5. Executive Agreement
Series 482. 9 pp. 5t-
2464. Publications of the Department of State: A Semi-
Annual List Cumulative From October 1, 1929 to Jan-
uary 1, 1946. 38 pp. Free.
2465. Mutual Aid in French North and West Africa :
Agreement Between the United States of America and
the French Committee of National Liberation — Signed
at Algiers September 25, 1943 ; effective September 25,
1943. Executive Agreement Series 483. 8 pp. 50.
2467. The Department of State Bulletin, vol. XIV, no. 345,
February 10, 1946. 44 pp. 100.
2468. Why Lend to Britain? By Clair Wilcox, Department
of State. Commercial Policy Series .82. 20 pp. 50.
2469. The Credit to Britain: The Key to Expanded Trade.
Address by Dean Acheson, Under Secretary of State,
February 1, 1946. Commercial Policy Series 83. 16
pp. 100.
2470. Diplomatic List, February 1946. 139 pp. Subscrip-
tion, $2 a year ; single copy 200.
2471. The Department of State Bulletin, vol. XIV, no. 346,
February 17, 1946. 40 pp. 100.
2473. Consultation Among the American Republics With
Respect to the Argentine Situation: Memorandum of
the United States Government. February 1946. Inter-
American Series 29. 86 pp. 200.
2474. The Department of State Bulletin, vol. XIV, no. 347,
February 24, 194G. 44 pp. 100.
2475. "the defenses of peace": Documents Relating to
UNESCO, the United Nations Educational, Scientific
and Cidtural Organization. Part II. Conference
Series 81. .58 pp. 150.
2477. The Credit to Britain and World Trade. Address by
Dean Acheson. Under Secretary of State, February
19, 1946. Commercial Policy Series 84. 21 pp.
2478. The Department of State Bulletin, vol. XIV, no.
348, March 3, 1946. 44 pp. 100.
2482. The Department of State Bulletin, vol. XIV, no.
349, March 10, 1946. 48 pp. 100.
2483. The Spanish Government and the Axis : Offiei.il
German Documents. European Series 8. 39 pp. 150.
2486. The Proclaimed List of Certain Blocked Nationals,
Cumulative Supplement No. 2, March 14, 1946, to
Revision X of December 20, 1945. 14 pp. Free.
The Department of State also publishes the United
States Statutes at Large which contain the laws of the
United States and concurrent resolutions of Congress,
proclamations of tlie President, treaties, and international
agreements other than treaties. The Statutes are issued
after adjournment sine die of each regular session of
Congress. The laws are also published in separate prints,
popularl.v known as slip law.s, imni?diately after enact-
nient. These are issued in two series: Public Laws and
private Law.s, consecutively numbered according to the
dates of approval or the dates upon which bills or joint
resolutions otherwise become law pursuant to the provi-
sions of the Constitution. Treaties also are issued in a
special series and are numbered in the order in which
they are proclaimed. Spanish, Portuguese, and French
translations, prepared by the Department's Central Trans-
lating Division, have their own publication numbers run-
ning consecutively from 1. All other publications of the
Department since October 1, 1929 are numbered consecu-
tively in the order in which they are sent to press; in
addition, some of them are subdivided into series accord-
ing to general subject.
To avoid delay, requests for publications of the Depart-
ment of State should be addressed direct to the Superin-
tendent of Documents, GovernnxMit Printing Office, Wash-
ington 25, D, C, except in the case of free publications,
which may be obtained from the Department. The Super-
intendent of Documents will accept deposits against which
the cost of publications ordered may be charged and will
notify the depositor when the deposit is exhausted. The
cost to depositors of a complete set of the publications of
the Department for a year will iirobably be somewhat in
excess of $15. Orders may be placed, however, with the
Superintendent of Documents for single publications or
for one or more series.
The Superintendent of Documents also has, for free
distribution, the following price lists which may be of
interest : Foreign Relations of the United States ; Ameri-
can History and Biography; Laws; Commerce and Man-
ufactures; Tariff: Immigration; Alaska and Hawaii:
Insular Possessions; Political Science: and Maps. A list
of publications of the Bureau of Foreign and Domestic
Commerce may be obtained from the Department of
Commerce.
The Foreign Service
Confirmations
The Senate confirmed on March 21, 1946 the nomination
of Lt. Gen. Walter Bedell Smith, U.S.A., to be Ambassador
Extraordinary and Plenipotentiary of the United States
to the Uirion of Soviet Socialist Republics.
Consular Offices
The American Consulate at Suez, Egypt, was closed on
February 2, 1946.
The American Consulate General at Munich, Germany,
was opened on Jlarch 11, 1946.
PUBLISHED WITH APPROVAL OF DIRECTOR OF BUREAU OF THE BUDGET
U. S. GOVERNMENT PRINTING OFFICE; 1946
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