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Full text of "Department of State bulletin"

Given By 
U. S. SUPT. OF DOCUMENTS 



3^ 



THE DEPARTMENT OF STATE 

BULLETIN 



VOLUME II • Numbers 28-53 

V 

January 6— June 29, 1940 / 




UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1940 






DEC 13 m^ 



Publication 1525 



INDEX TO THE DEPARTJMENT OF STATE BULLETIN 
Volume H: Numbers 28-53, January 6 -June 29, 1940 



Accounts, Division of the Department : Appointment 
of Donald W. Corrick as Chief and Fred R. Toung 
as Assistant Chief, 363. 

Addresses, statements, etc. See names of individuals 
and specific subjects. 

Aden: Suspension of parcel-post service, 721. 

Administrative and technical officials, U. S. : Loan of, to 
other American republics, 170-172. 

Advisory Committee on Problems of Foreign Rela- 
tions, Department of State, 19. 

Afghanistan : Sanitary convention of 1926, modifica- 
tion (1938), ratification, 632. 

Agrarian claims, U. S. and Mexico : Extension of ad- 
judication i)eriod, 626-627 ; payment by Mexico, 
706. 

Agreements, international. See Trade-agreements pro- 
gram ; Treaties, agreements, etc. 

Agriculture : 

Benefits of trade agreements, 34, 39-41, 73-74, 

80-81. 
International Institute at Rome, Fifteenth General 
Assembly, 422. 

Air navigation. See Aviation. 

Air service. See Aviation. 

Aircraft. See Aviation. 

Airmail, U. S. : Censorship at Bermuda, 196. 

Albania : Suspension of parcel-post service, 721. 

Aliens entering U. S. : New regulations, 620-624, 666- 
667. , ! 

All America Youth Orchestra: South American tour, 
666. 

American citizens in foreign countries (see also the 
individual countries; Europe; Neutrality of Ui?.), 
29, 323-324, 433, 462, 463, 647. . ■ 

American Federation of Labor : Correspondence be- 
tween President Green and Secretary Hull on trade 
agreements, 42. 

American Library Association: Address of E. Wilder 
Spauldiug before, 599-602. 

American Merchant Marine Institute : Letter of Secre- 
tary Hull to President Taylor, 28-29. 

American missions in China : Japanese bombing, 412. 

American republics {see also Commissions, etc. ; Con- 
ferences, etc. ; Inter- American relations ; Neutral- 
ity, etc. ; and individual countries) : 
Christian morality : Maintenance, 542. 
Cooperation : U. S. Interdepartmental Committee on, 

171 ; declarations concerning, 60-61. 
Economic defense, 675-679. 



American republics — Continued. 
European possessions in Western Hemisphere, 619- 

620, 6S1-682. 
Joint protests to belligerents on neutrality viola- 
tions of — 
American security zone, 306, 568-569 ; replies, 199- 

205. 
Belgium, Luxemburg, and the Netherlands, 541- 
542, 568. 
Lima, Declaration of, 61. 

Panama, Declaration of, 7-8, 61-62, 200, 202, 203- 
204, 568-569. 
American Scientific Congress, Eighth, 83-84, 450, 494- 

499, 537-^541. 
American ships. See U. S. ships under Europe and 

under Neutrality of U. S. 
American Society of International Law : Address of 

Secretary Hull before, 532-535. 
Ammunition. Sec Arms and munitions. 
Anchorage and movement of foreign and domestic ves- 
sels, 707-708. 
Anglo-Egyptian Sudan : Suspension of parcel-post 

service, 721. 
Anglo-French war-trade policies, 434-435. 
Anniversaries, national. See individual countries. 
Apprenticeship : Recommendation of International La- 
bor Conference, 670. 
Appropriations: Department of State (1&41), 603-609. 
Arbitration (see also Permanent Court of International 
Justice) : 
Address'by Mr. Braden, 383-389. 
Comalwt'iarm'attir.i, arbitration clauses in, proto- 

, col', 5iS6.' 
Day, inter- American celebration of, 383. 
Inter-American Commercial Arbitration Commission, 

385. 
Pacific settlement of international disputes, 86-87, 

191, 219, 271-272, 286, 332, 423, 451, 585. 
Permanent Court of Arbitration : Appointments to, 
50-51, 398, 511, 554, 699. 
Architects, Fifth Pan American Congress, 158-159. 
Architecture and City Planning, Fifth Pan American 

Exposition, 159. 
Argentina : 

Anniversary of independence, 570, 613. 
Buenos Aires : Floods, 410, 450. 
President Ortiz : Death of wife, 362, 390. 

725 



726 



DEPABTMENT OF STATE BULX.ETIN 



Argentina — Continued. 
Treaties, agreements, etc. 

Aviation instructors, U. S. military, with U. S. : 

Signature, 719-720. 
International law (civil, commercial, penal, pro- 
cessal) and commercial navigation, treaties 
and additional protocol adopted by Conference 
of Jurisconsults (1940) : Signature, (531. 
Trade agreement witli U. S. : Termination of 
negotiations, 10, 42. 
Arms and munitions: 
Categories, 119-120. 

Traffic statistics, 110-121, 18(5-190, 32.S-331, 414-421, 
544-552, 690-698. 
Assistant Secretary of State. See Berle, Adolf A., Jr. ; 

Grady, Henry F. ; Long, Breckinridge. 
Asylum and political refugees, treaty: Adoption by 

Conference of Jurisconsults, 631. 
Attorney, powers of, protocol, 287-290, 424, 615, 632. 
Attorney General: Letter to Secretary Hull on Neu- 
trality Act of 1939, 295-305. 
Australia : 

American Minister (Gauss) : Confirmation of nom- 
ination, 49. 
Diplomatic relations with U. S. : Establi.shment, 49. 
Minister to U. S. (Casey): Nomination, 49; pres- 
entation of credentials, 281-282. 
Treaties, agreements, etc. : 
Educational films, procfes-verbal : Signature on 

behalf of, 125. 
Postal convention, universal (1939) : Acceptance, 

399. 
Sanitary convention of 1926, modification (1938) : 
Ratification, 50. 
Aviation : 

Navigation, regulation of, coavention atd ^jYotocdlsi' 

Adherence by Paraguay, 161-162. ' : ' " , " 
Inter- American : Development, 8. ... 

Liquid fuel and lubricants, convention. 'J?3,» 587. 
Military instructors, U. S., to Argentina, 719-720; 

to Chile, 453. ;."; .* '; ; ."=•''*•''./ " 

National-defense message of ^rfesfdeilt to' 06n'gi-ess,- 

529-532. 
Service between U. S. and Scandinavian countries, 

130. 
Travel of Americans in belligerent aircraft over 

Canada, 612. 
Treaties, lGl-162, 273, 424-125, 453, 512, 587, 719- 
720. 
Awards by U. S. to members of Brazilian Navy, 
472-473. 

Bakeries, night work in, convention: Ratification by 

Sweden, 192. 
Balkans : Warnings to Americans to evacuate, 560. 



Bank, Inter-American. See Inter- American relations; 

Treaties, agreements, etc. 
Baiinerman, Robert C, Chief Special Agent of the 

Department : Death, 268-270. 
Belgium (see also Europe) : 
Address by Mr. Davies, 536. 

American Ambassador: Resignation (Davies) 123- 
124; confirmation of nomination (Cudahy), 49. 
Americans : Welfare, 488, 544, 625, 625-626. 
Debt to U. S., 654-655. 
Parcel-post service : Suspension, 721. 
Property in U. S. : Executive order, 493. 
Red Cross: Collaboration \vith Army Health Serv- 
ice, 125. 
Treaties, agreements, etc. : 

Pacific settlement of international disputes, dec- 
larations of Australia and Canada : Noted, 
423. 
Permanent Court of International Justice, optional 
clause of Statute, declarations of Australia, 
Canada, France, Great Britain, India, New 
Zealand, Union of South Africa: Noted, 87, 
366. 
Visa fees, waiver of, with U. S. : Termination, 
332. 
Belligerents. See Europe ; Far East. 
Berle, Adolf A., Jr., Assistant Secretary of State: 
Addresses, etc., 1.39-142, 166-169, 254-260, 464- 
465, 597-598, 67(5-679, 685-686. 
Berlin, Germany : Responsibility of American Em- 
bassy for Americans in Poland, 319. 
Bermuda : Censorship of U. S. airmail, 196. 
Blockade of German exports by Great Britain, 5, 

434-435. 
Bloom, Sol, U. S. Representative: Correspondence 
, with Secretary Hull on proposed joint resolution 
' ' fegKv.liug European possessions in Western Hemi- 
• ' • sphere, 619-620. 
Board of Inquiry for Great Lakes fisheries, U. S. 

and Canada, 273-275. 
Bolir'a ■ Treaties, agreements, etc. : 
" Ixit^fir-American Bank, 512. 

International law (civil, commercial, penal, and 

processal) and commercial navigation, treaties 

and additional protocol adopted by Conference 

of Jurisconsults (1940), 631. 

Borah, William E., U. S. Senator : Death, 81-82. 

Boyd, Jorge E., Panamanian Ambassador to U. S. : 

Presentation of credentials, 15(5-158. 
Braden, Spruille, American Ambassador to Colombia: 

Address on arbitration, 383-389. 
Brazil : 
President Vargas : Speech addressed to Brazilians, 

666. 
Professors and students: Exchange with U. S., 
357-361. 



INDEX 



727 



Brazil — Continued. 

Rio de Janeiro : Foreign Service Conference at (1940), 
314. 

Treaties, agreements, etc. : 
Inter-American Banlv : Signature, 587. 
International law (commercial, penal, and proces- 
sal) and commercial iiayigatiou, treaties and ad- 
ditional protocol adopted by Conference of 
Jurisconsults (1940): Signature, 631. 
Radiocommunicatious, inter-American : Ratifica- 
tion of arrangement and convention, 201, 
367-368. 
U. S. awards to members of Navy, 472-473. 
Briggs, Ellis O., Assistant Chief, Division of the Amer- 
ican Republics of the Department: Address, 6-10; 
article, 170-172. 
British Somaliland: Suspension of parcel-post service, 

721. 
Broadcasting : 

Regional agreement : Text of articles regarding rati- 
fication, effective date, adherence, etc., 14-15 : 
ratification by Mexico, 14-15, 192, 368. 
U.se in cause of peace, convention : Ratification by 
Chile, 350-351. 
Bulgaria : Suspension of parcel-post service, 721. 
Bullitt, William C, American Ambassador to France: 

Reports from Paris, 625, 646-647, 682. 
Burma, application of treaties to : 
Educational films, proc&s-verbal, 555. 
International Law, Conference for Codification of, 

conventions and protocol, 615. 
International slavery, 556. 

Cabinet dinner in honor of President and Mrs. Roose- 
velt, 283. 
Cairo: Telecommunication regulations, revisions, 51, 

125, 162, 221, 367, 480-^81. 
Calderon Guardia, Rafael A., President-elect of Costa 

Rica: Visit to U. S., 322-323, 344-345, 410. 
Canada (see also Neutrality of U.S.) : 
American Minister (Cromwell) : Address on policies 
of governments, 324-325 ; confirmation of nom- 
ination, 49; resignation, 584-585. 
Fisheries : Commission, U. S. and, 145^-146 ; Great 

Lakes Board of Inquiry, 273-274. 
Governor General, Lord Tweedsmuir : Death, 175. 
Joint Commission, U. S. and : Investigation of ques- 
tions relating to Souris (Mouse) River, 82-83. 
Trade with U. S. under agreement, 4.3-48. 
Travel of Americans in belligerent aircraft over, 

612. 
Treaties, agreements, etc. : 
American nationals (individuals), acquisition and 
disposition of foreign currency and securi- 
ties: With U. S. (text), 699-701. 
Great Lakes - St. Lawrence waterway, proposed 
treaty : With U. S., 14, 124-125. 



Canada — Continued. 

Treaties, agreements, etc. — Continued. 
Great Lakes fisheries. Board of Inquiry: Estab- 
lishment, with U. S., 273-275. 
Pacific settlement of international disputes: Dec- 
laration, 86. 
Permanent Court of International Justice, op- 
tional clause of Statute: Declaration, 87. 
Red Cross Convention (1929) : Canadian Society, 
511. 
U. S. regulations regarding Canadian commuters, 
666-667. 
Caribbean, Inter-American Union of, 569-570. 
Casey, Richard G., Australian Minister to U. S. : Nom- 
ination, 49: presentation of credentials, 281-282. 
Censorship : 

EgSTitian regulations, 96. 
U. S. airmail at Bermuda, 196. 
"Charles R. McCormick" : Departure from Norway, 

377-378, 413^14, 624. 
Charlotte, Grand Duchess of Luxemburg: Birthday, 96. 
Charlottesville, Virginia: Address by President 

Roosevelt at, 635-638. 
Cherriugton, Ben M., Chief, Division of Cultural Re- 
lations of the Department : 
Address on inter-American relations, 660-666. 
Resignation : Correspondence with Secretai-y Hull, 
717-718. 
Chihkiang, China : Japanese bombing of American 

missions, 412. 
Children, conventions on employment of: At sea (re- 
vised 1936), ratification by Iraq, 191-192; in in- 
dustry (1937), ratification by China, 366-367. 
Chile : 
Professors and students: Exchange with U. S., 

279-281, 357-361. 
Treaties, agreements, etc. : 

Aviation, U. S. military mission: With U. S., 453. 
Broadcasting (peace) : Ratification, 350-351. 
Commercial : 

Navigation and additional protocol adopted by 
Conference of Jurisconsults (1940) : Signa- 
ture, 631. 
With U. S. : Ratification, 191. 
Educational films, inter-American : Ratification, 

219. 
Smuggling, Inter-American, repression : Ratifica- 
tion, 220. 
China (see also Far East) : 

Commission of Inquiry, U. S. and, 48. 
Japanese bombing of American missions in Chih- 
kiang, 412 ; of Chungking, 666. 
Nanking, new regime : Statement of Secretary 

Hull, 343. 
National Government : Continued recognition by 
U. S., 343, 



728 



DEPABTMENT OF STATE BULLETIN 



China — Continued. 

Treaties, agreements, etc. : 

Children, emiiloyment in industry: Ratification, 

3G6-367. 
Telecommunication, Cairo revisions (1938) : Ap- 
proval, 162. 
Christian Foreign Service: Convocation address by 

President Roosevelt, 345-346. 
Chungking, China : Japanese bombing, 666. 
City Planning and Architecture, Fifth Pan American 

Exposition, 159. 
Civil law, revised treaty: Adoption by Conference of 

Jurisconsults, 631. 
Claims, U. S. and — 

Mexico: Agrarian, 620-627, 706. 
Norway : Hannevig and Jones, 351. 
Colombia : 

American Consulate at Medellin, 451. 

Permanent Court of Arbitration : Appointments, 

50-51, 398. 
Treaties, agreements, etc. : 

Inter-American Bank : Signature, 512. 
International law (civil, commercial, penal, and 
processal) and commercial navigation, trea- 
ties and additional protocol adopted by Con- 
ference of Jurisconsults (1940) : Signature, 
631. 
Powers of attorney, protocol : Signature, 632. 
Columbus Arms mural, Library of Congress: Dedi- 
catory addre.?s of Under Secretary Welles, 
596-597. 
Combat areas. See Neutrality of U. S. 
Commerce, international (.'fee also Exports; Imports; 
Neutrality of U.S.; Trade-agreements program; 
Treaties, agreements, etc.) : 
Addresses, etc., relating to, by Mr. Deimel, 506-510; 
Mr. Edminster, 574-581; Mr. Geist, 473^79; 
Mr. Grady, 391-397; Secretary Hull, 129, 571-574. 
Anglo-French war-trade policies, 434-435. 
Arbitration clauses, protocol : Withdrawal of Neth- 
erlands reservation, 586. 
Commercial Agents, Second Pan American Congress, 

526. 
Commercial Arbitration Commission, Inter-Ameri- 
can, 385. 
Commercial law, revised treaty: Adoption by Con- 
ference of Jurisconsults, 631. 
Commercial navigation, revised treaty: Adoption 

by Conference of Jurisconsults, 631. 
Economic reconstruction, 99-100, 101-105, 109, 139- 

142, 461, 464. 
European situation with regard to, 19, 477, 506-510. 
Export surpluses in Western Hemisphere, 675. 
Trade of U. S. with Canada, 43-48. 



Commerce, international — Continued. 
Treaties, agreements, etc., U. S. and— 
Chile (1938) : Ratification by Chile, 191. 
Iraq (1938) : Ratification by Iraq, 586; proclama- 
tion by President of U. S., 616. 
U. S. foreign policy, 461, 462-464, 473-479. 
Commercial Affairs, Division of the Department: Es- 
tablishment, 268 ; appointment of Raymond H. 
Geist as Chief, 363. 
Commissions, committees, etc., international {see also 
Conferences, etc.) : 
Agriculture, International Institute at Rome, Fif- 
teenth General Assembly, 422. 
American Republics, U. S. Interdepartmental Com- 
mittee on Cooperation With, 171. 
Commercial Agents, Second Pan American Congress 

at Rio de Janeiro, 526. 
Commercial Arbitration Commission, Inter-Ameri- 
can, 385. 
Cultural Relations Division of the Department, 

General Advisory Committee to, 717. 
Department of State Advisory Committee on Prob- 
lems of Foreign Relations, 19. 
Financial and Economic Advisory Committee, Inter- 
American, 9, 62, 305-306, 522. 
Fisheries, U. S. and Canada : 
Board of Inquiry (Great Lakes), 273-275. 

Commission (Joint), 145-146. 
Habana, Permanent Committee of, 159. 
Health, National Directors of. Fourth Pan American 

Conference at Washington, D. C, 479. 
Highway Board (Joint), U. S. and Panama, 150. 
Inquiry, Commissions of, U. S. and — 
China, 48. 

Union of South Africa, 365-366. 
Montevideo, Permanent Committee of, 159. 
Neutrality Committee, Inter-American, 470-472. 
Powers of Attorney, Committee of the Pan American 

Union : Protocol and report, 287. 
Radiocommunications Committee (C. C. I. R. ), 51. 
Rio de Janeiro, Permanent Committee of, 159. 
Souris (Mouse) River investigation. Joint Commis- 
sion, U. S. and Canada, 82-83. 
Telephone Consulting Committee, International, 125. 
Union of the Caribbean, Inter-American, Second 
Meeting at Ciudad Trujillo, 569-570. 
Conferences, congresses, etc., international : 

Agriculture, International Institute at Rome, Fif- 
teenth General Assembly, 422. 
Architects, Fifth Pan American Congress at Monte- 
video, 158-159. 
Commercial Agents, Second Pan American Congress 

at Rio de Janeiro, 526. 
Foreign Service Conference at Rio de Janeiro, 314. 



INDEX 



729 



Conferences, etc. — Continued. 
Health, National Directors of, Fourth Pan American 

Conference at Washington, D. C, 479. 
Indian Life, First Inter-American Congress at Piitz- 

cuaro, Mexico, 389. 
Juriscon.sults, Conference at Montevideo, 631. 
Labor Conference, International, 191-192, 275, 366- 

367, 425, 481^82, 632, 670-671, 701. 
Ministers of Foreign Affairs of American Republics: 
First Meeting at Panamd, 7, 61, 542; Second 
Meeting at Habana, 705-706. 
Scientific Congress, Eighth American, Washington, 

D. C, S3-S4, 450, 494-i99, 537-541. 
Union of the Caribbean, Inter-American, Second 
Meeting at Ciudad Trujillo, 569-570. 
Conferences, International, Division of the Depart- 
ment : Appointment of Warren Kelchner as Chief, 
85. 
Congress, U. S. See U. S. Congress. 
Consular convention, V. S. and Lithuania, 512. 
Consular offices. See Foreign Service of the U. S. 
Contributions for relief. See Relief, etc. 
Conventions, interuatioual. See Treaties, agreements, 

etc. 
Copyright treaty: Adoption by Conference of Juris- 
consults, 631. 
Corrick, Donald W., Chief, Division of Accounts of 

the Department : Appointment, 363. 
Costa Rica : 
Minister to U. S. (Rodriguez) : Presentation of cre- 
dentials, 680-681. 
President-elect Calderou Guardia : Visit to U. S., 

322-323, 344-345, 410. 
Professors and students : Exchange with U. S., 357- 
301. 
Courts. See Permanent Court of Arbitration ; Perma- 
nent Court of International Justice. 
Cromwell, James H. R., American Minister to Canada : 
Address on policies of governments, 324-325. 
Confirmation of nomination, 49. 
Resignation, 584-585. 
Cuba: 

American Ambassador (Messersmith) : Confirma- 
tion of nomination, 49. 
Anniversary of independence, 570. 
Habana Meeting of Ministers of Foreign Affairs of 
American Republics, 705-706. 
Cudahy, John, American Ambassador to Belgium and 
Minister to Luxemburg: Confirmation of nomina- 
tion, 49. 
Cultural Relations, Division of the Department : 

Chief, resignation (Cherrington), 717-718; appoint- 
ment (Thomson), 718. 
Duties, 313-313. 

General Advisory Committee to, 717. 
Cultural relations, inter-American. See Inter-Ameri- 
can relations. 



Curacao: Arbitration clauses in commercial matters, 
protocol, partial withdrawal of reservation in re- 
spect of, 586. 

Currency and securities, foreign : Agreement, U. S. 
and Canada (text), 699-701. 

Customs Receivership, Dominican : Transfer to De- 
partment of State, 397. 

Cyprus: Suspension of parcel-post service, 721. 

Czechoslovakia : Suspension of parcel-post service, 720, 

Danzig : 

American Consulate at, 148. 
Parcel-post service : Suspension, 720. 
Telephone Consulting Committee, International : 
End of membership, 125. 
Davies, Jo.seph E., Special Assistant to the Secretary 
of State: 
Addresses, etc., 143-145, 499-.502, 536. 
Resignation as American Ambassador to Belgium 
and Minister to Luxemburg, 123-124. 
Debts, intergovernmental, 647-648; Belgium, 654-655; 
Estonia, 655; Finland, 651-652; France. 648-649; 
Great Britain, 649-650; Hungary, 652-654; Italy, 
650-651: Latvia, 655-656; Lithuania, 656-657; Po- 
land, 657-658; Rumania, 658-660; Yugoslavia, 651. 
Declarations of Lima and Panami. See Inter-Amer- 
ican relations. 
Defense, U. S. national, 529-532, 591-596, 637-638. 
Deimel, Henry L., Jr., Assistant Chief, Division of 
Commercial Treaties and Agreements of the De- 
partment: Address on foreign trade, 506-510. 
Denmark (see also Europe) : 
Air service between U. S. and Scandinavian coun- 
tries, 130. 
Parcel-post service : Suspension, 720. 
Permanent Court of Arbitration : Appointment, 398. 
Treaties, agreements, etc. : 
Pacific settlement of international disputes, dec- 
larations of Australia and Canada : Reserva- 
tions, 332. 
Permanent Court of International Justice, op- 
tional clause of Statute, declarations of Aus- 
tralia, Canada, France, India, New Zealand, 
Union of South Africa : Reservations, 332. 
Sanitary convention of 1926, modification (1938) : 
Ratification, 50. 
Departmental orders. See State, Department of. 
Departments, U. S. See alphabetic entries. 
Diamantopoulos, Cimon P., Greek Minister to U. S. : 

Presentation of credentials, 173-174. 
Disputes, pacific settlement of, 86-87, 191, 219, 271-272, 

286, 332, 423, 451, 585. 
Dominican Republic : 

American Minister (Scotten) : Confirmation of 

nomination, 49. 
Anniversary of independence, 253-254. 



730 



DEPARTMENT OF STATE BULLETIN 



Dominiciin Republic — Continued. 

Customs Receivmsliip : Transfer to Department of 

State, 397. 
President Peynado : Death, 281, 306-307. 
Professors and students: Exchange with U. S., 

357-361. 
Sinking of German ship "Hannover", 568-569. 
Treaties, agreements, etc. : 
Intellectual cooi)eration : Ratification, 511. 
Inter-American Bank: Signature, 512. 
Telccommunicatinn. Cairo revisions (1938) : Rat- 
ification, 367, 480. 
Drugs, trafiic in, convention: Ratification by Egypt, 

315; by France, 220. 
Duggan, Laurence, Chief, Division of the American 
Republics of tlie Department : Addresses, on radio 
education, 252-2.53 ; on Pan American Day, 40.5-409. 
Dundee, Scotland: American Consulate at, 148. 

Earthquake in Anatolia, Turkey, 10. 
Economics and finance (ncc also Inter-American rela- 
tions, Economic relations) : 
Economic defense of Western Hemisphere: Address 

by Mr. Berle, 676-679. 
Economic Problems of Foreign Relations, Depart- 
ment of State Advisory Committee, 19. 
European situation: Effects, 19, 434-435, 477, .501, 

630-631, 675. 
Financial and Economic Advisory Committee, Inter- 
American, 9, 62, 30.5-306, .522. 
Reconstruction, economic, 99-100, 101-105, 109, 139- 
142, 266, 461, 464, 631. 
Ecuador : 

Inter-Amorican Bank convention : Signature, 512. 
Restrictions on IT. S. imports into, 667-668. 
Edminster, Lynn K., Special Assistant to the Secre- 
tary of State : Addresses, on trade-agreements pro- 
gram, 238-24.5; on foreign trade, 574-581. 
Educational films, conventions on, 125, 219, 272-273. 

555-556. 
Egypt : 

Birthday of the King, 174-175. 
Censorship regulations, 96. 
Parcel-post service : Suspension, 721. 
Treaties, agreements, etc.: 
Drugs, traffic in : Ratification, 315. 
Intellectual cooperation : Ratification, 670. 
Elglith American Scientific Congress. See Scientific 

Congress. 
Eire, flee Ireland. 
El Salvador : Powers of attorney, protocol : Signature, 

615. 
Ensenada, Mexico: American Consulate at, 668. 
Estonia : 
Anniversary of independence, 198. 
Debt to TJ. S., 6-55. 



Estonia — Continued. 

Parcel-post service : Suspension, 721. 
Treaties, agreements, etc. : 

Pacific settlement of international disputes, dec- 
larations of Australia and Canada: Noted, 
271. 
Permanent Court of International Justice, op- 
tional clause of Statute, declarations of 
Australia, Canada, France, India, New Zea- 
land, Union of South Africa: Noted, 272. 
Ethiopia : Suspension of parcel-post service, 721. 
Europe, war in (nee also American republics : Neutrality 
of U. S. ; Relief, etc. ; and individual countries) : 
Addresses relating to, by Mr. Davies, 499-502; by 

President Roosevelt, 591-596, 635-638. 
American citizens : 

Evacuation (see also Repatriation) : 

Belgium, .544; Norway. 412, 413, 433-434, 473; 
Scandinavia, 377 ; Soviet-occupied territory, 
95-96 ; Sweden, 413. 
Warnings regarding, 542-543, 560. 
Killed, 4;33, 647. 
Repatriation, 462-463, 682: 

S. S. Charles R. McCormick, 624. 

S. S. Manhattan, 611, 624. 625, 706. 

S. S. President Roosevelt, 559-560, 610, 611, 624, 

625. 
S. S. Washington: First voyage, 610-611, 624, 

645-646; second voyage, 706-707. 
Sweden. 413. 
Travel regulations, 56, 378-379, 431-432, 492, 644, 

646, 707. 
Welfare in Belgium, 488, 625, 62.5-626; France, 
625; Netherlands, 486, 544; Norway, 413, 414, 
488. 
Belgium : 

German invasion of, 485-488 : 

Address regarding, by Mr. Davies, .536. 
Correspondence between King Leopold ana 

President Roosevelt, 492-493. 
Protest by American republics, 541-542, 568. 
U. S. neutrality proclamations and regulations, 
489-492, 493. 
Property in U. S. : Executive order, 493. 
Blockade of German exports by Great Britain, 5, 

434-435. 
Denmark, German Invasion of. 374: 
American Foreign Service oflScers : Reports, 374- 

375, 412-414. 
Statements by President Roosevelt, 373; by 
Secretary Hull, 373. 
Economic effects of war, 19, 434-435, 477, 501, 

630-631, 675. 
Finland : 
Assistance by League of Nations, 19-20; by 
United States, 1&-20, .55. 



INDKX 



731 



Europe, etc. — Coiitiuued. 
Finland — Continued. 

Bombings of American Minister's residence, 56; 

of Helsinki, 56. 
Soviet Union, relations with : 
Statement by President Roosevelt, 295. 
Treaty of peace, 453-4.'56. 
France : 
Bombings, 487, 625. 
Paris : Bombing, 625 ; declaration of open city, 

646-647; occupation by Germany, 682. 
Premier Reyniaud : Correspondence with Presi- 
dent Roosevelt, 638, 639. 
Property in U. S. : Executive order, 682. 
War-trade jjolicies : Conversations with Great 
Britain and U. S., 434-435. 
Germany : 
Blockade of exports by Great Britain, 5, 434-435. 
Invasion of — 
Belgium, Luxemburg, and Netherlands, 485-488, 

492-493, 536, 541-542, 568. 
Denmark and Norway, 373-376, 412-414. 
Occupation of Pari.s, 682. 
Great Britain : 

Blockade of German exports, 5, 434-435. 
U. S. mails: Censorship at Bermuda, 196; treat- 
ment, 3, 91-93. 
U. S. ships : Treatment, 4-5, 93-94. 
War-trade policies : Conversations with France 
and U. S., 434-435. 
'•Hannover" : Sinking of, 568-569. 
Italy : Entry into war, 636-637. 
Luxemburg : 

German invasion, 485-488: Protest by American 
republics, 541-542, 568; U. S. neutrality proc- 
lamations and regulations, 489-492, 493. 
Property in U. S. : Executive order, 493. 
Netherlands : 

German invasion, 485-488: Protest by American 
republics, 541-542, 568 ; U. S. neutrality proc- 
lamations and regulations, 489-492, 493. 
Property in U. S. : Executive order, 493. 
Neutrals, conversations regarding restoration of peace, 

153. 
Norway : 

German invasion, .373-376, 412-414 : U. S. neutral- 
ity proclamations and regulations, 429-432. 
U. S. ships : Departure, 377-378, 41.3-414. 
Switzerland : Bombings, 488. 
U. S. Foreign Service : 
Death of American Military Attache Losey in 

Norway, 433. 
Personnel in — 

Norway, Denmark, and Sweden, 376-377. 
Poland : Evacuation of members of Consulate 

General in Warsaw, 319. 
268201—40 2 



Europe, etc. — Continued. 
U. S. B^oreign Service — Continued. 

Reports on invasions of Belgium, Luxemburg, and 
Netherlands, 485-488; of Denmark and Nor- 
way, 373-376, 412-414. 
Representation of foreign interests in Europe by 

American diplomatic missions, 543-544. 
Responsibility of American Embassy in Berlin for 
Americans in Poland, 319. 
U. S. immigration quotas: Control of, 682. 
U. S. mails : 
Censorship in Bermuda, 196. 

Treatment of: U. S. protest, 3; British reply, 91- 
93. 
U. S. ships : 

Departure from Norway : "Charles R. McCor- 
mick", 377-378, 413-414, 624; "Flying Fish", 
377-378, 413-414; "Mormacsea", 377-378. 
Detention and search by belligerents, 4-5, 27, 93- 

94, 196-198, 320-321, 645. 
Red Cross ship "McKeesport" : Regulation permit- 
ting entry into combat areas, 646. 
Repatriation of Americans : 

Combat areas: Regulations permitting entry 

into, 560, 610-611, 707. 
"Manhattan", 611, 624, 625, 706. 
"President Roosevelt", 559-560, GIO, 611, 624, 625. 
Vessels to Spain and Portugal, 682. 
"Washington": First voyage, 610-611, 624, 645- 
646; second voyage, 706-707. 
U. S. S. R. : Peace treaty with Finland (text), 453- 

456. 
Welles, Sumner, Under Secretary of State, U. S. : 
Memorandum to French Minister of Finance on 

U. S. economic policy, 461. 
Visit to Europe, 155, 172, 319, 335, 362. 
Exchange professors and students : U. S. and other 

American republics, 279-281, 357-361, 679-680. 
Executive agreements. See Treaties, agreements, etc. 
Executive orders: 
Aliens, 622-624. 

Neutrality: Enforcement, 431, 491, 643. 
I'roperty of Belgium, Luxemburg, and Netherlands 

in U. S., 493 ; of France in U. S., 682. 
Seamen, 620-621. 
Experts, technical and administrative oflScials of 
U. S. : Loan of, to other American republics, 170- 
172. 
Export surpluses in Western Hemisphere, 675. 
Exports, German : Blockade by Great Britain, 5, 434- 

435. 
Exports from U. S. (see also Trade-agreements pro- 
gram) : 
Address by Mr. Deimel, 506-510. 
Aircraft : Arrangement with New Zealand, 424-425. 
Anglo-French war-trade policies, 434-435. 



732 



DEPAETMENT OF STATE BULLETIN 



Exports from TJ. S. — Continued. 

Arms and munitions, 110-119, 186-189, 325-330, 

414-420, 544-552, 690-697. 
Helium, 121, 190, 331, 421, 552, 698. 
Petroleum to U. S. S. R., 195. 
Restrictions with regard to Ecuador, 667-668. 
Tin-plate scrap, 12, 121, 189-190, 331, 421, 552, 698. 
Transfer of title to merchandise for belligerents, 
432, 491-492. 
Expositions, international : 
Architecture and City Planning, Fifth Pan Ameri- 
can, 159. 
Golden Gate, 84. 
Expropriation of oil properties of U. S. nationals by 

Mexico, 380-383, 465-470. 
Extradition. See Treaties, agreements, etc. 

Far East [see also China; Japan) : 

American missions in China : Japanese bombing, 

412, 666. 
Americans : Protection of rights, 463. 
Nanking, China, new regime : Statement of Secre- 
tary Hull, 343. 
Netherlands Indies : 

Status quo, maintenance of: Statements of Sec- 
retary Hull, 411, 493-494. 
V. S. policy regarding, 463. 
Farouk I, King of Egypt : Birthday, 174-175. 
Fenwick, Charles G., Member of Inter-American Neu- 
trality Committee : Address on work of the Com- 
mittee, 470-472. 
Films, educational, conventions on, 12."i, 219, 272-273, 

555-556. 
Finance. See Economics and finance. 
Financial and Economic Advisory Committee, Inter- 
American, 9, 62, 305-306, 522. 
Finland (see also Europe) : 

Air service between Scandinavian countries and 

U. S., 130. 
American citizen: Death in airplane explosion, 647. 
Assistance by League of Nations, 19-20; by United 

States, 19-20, 55. 
Debt to U. S., 651-652. 
Parcel-post service: Suspension, 721. 
Treaty of peace with U. S. S. R. (text), 4.53^.-)6. 
Finley, John Huston, editor emeritus New York 

Times: Death, 284. 
Fiscal and Budget Affairs, Office of the Department: 
Appointment of Ella A. Log.sdon as Chief and B. 
Leslie Vipond as Assistant Chief, 186. 
Fish, Bert, American Minister to Saudi Arabia : Ap- 
pointment, 159. 
Fish, Hamilton, U. S. Representative: Letter of Sec- 
retary Hull on German AVhite Book, 362. 
Fisheries, U. S. and Canada : 
Commission, Joint, 145-116. 



Fisheries, U. S. and Canada — Continued. 
Great Lakes Board of Inquiry, 273-275. 
Problems, 146. 
Floods in Buenos Aires, Argentina, 410, 450. 
"Flying Fish," 377-378, 413-414. 
Foreign currency and securities, agreement : U. S. 

and Canada (text), 699-701. 
Foreign diplomatic officers in the U. S. : Presentation 
of credentials, 156-157, 173, 174, 281-282, 680-681, 
716. 
Foreign interests in Europe : Representation by Amer- 
ican diplomatic missions, 543-544. 
Foreign Relations, Department of State Advisory Com- 
mittee, 19. 
"Foreign Relations of the United States: The Lan- 
sing Papers, 1914-1920", 205-206, 270-271. 
Foreign Service of the U. S. : 

Address relating to, by Mr. Geist, 581-584 ; by 

Mr. Grady, 262-265. 
Appointments, 13, 159, 218-219, 284, 314, 422, 434, 553, 

669. 
Assignments, 13, 49, 85-86, 146-148, 218-219, 284, 
314, 364-365, 422, 451, 473, 479-480, 552-553, 
585, 627, 668-669. 
Conference at Rio de Janeiro, 314. 
Consulates : 

Closing, at Danzig, 148; Dundee, Scotland, 148; 
Ensenada, Mexico, 668; Hull, England, 365; 
St. Pierre-Miquelon, 148. 
Opening, at Godthaab, Greenland, 473; Konigs- 
berg, Germany, 148 ; Medellin, Colombia, 451 ; 
Reykjavik, Iceland, 414, 422, 434; Tijuana, 
Mexico, 668. 
Consulate General in Warsaw : Evacuation, 319. 
Death of American Military Attach^ Losey in Nor- 
way, 433. 
Diplomatic relations with — 
Australia, 49. 
Saudi Arabia, 159. 
Embassy at Berlin : Responsibility for Americans in 

Poland, 319. 
Examinations, 160-161, 218. 
Minister's residence in Finland : Bombing, 56. 
Nominations : Confirmation, 49. 
Officers' reports on — 
Invasion of Belgium, Luxemburg, and Nether- 
lands, 485-488 ; of Denmark and Norway, 
373-376, 412-414; of Paris, 625, 646-6i7, 682. 
Officers' training school, 13. 
Personnel in Norway, Denmark, and Sweden, 376- 

377. 
Promotions, 49, 348-349. 
Representation of foreign interests in Europe by 

American diplomatic missions, 543-544. 
Resignations, 49, 123-124, 584-585. 
Retirements, 49. 



INDEX 



733 



Foreign trade, U. S. (see also Commerce, interna- 
tional ; Economics and finance ; Trade-agreements 
program; U. S. economic policy) : Address regard- 
ing, by Mr. Deimel, 506-510; Mr. Edminster, ,57-1- 
581; Mr. Gei.st, 473-479, .581-584; Secretary Hull, 
571-574. 
France (see also Europe) : 
American Consulate at St. Pierre-Miquelon, 148. 
American security zone : Violation, lt)9, 201-20.3. 
Americans in, 542-543, 625. 
Debt to U. S., 648-649. 
Property in U. S. : Executive order, 682. 
Treaties, agreements, etc. ; 

I)rug.s, traffic in : Ratification, 220. 
Educational films : Ratification, 55.5-556. 
Intellectual cooperation: Ratification, 511. 
Obscene publications, supjiression of circulation : 

Ratification, 290-291. 
Prisoners of war : Regulations under, 398. 
War-trade jwlicies : Conversations of representatives 
with those of Great Britain and U. S., 434-435. 
French Indochina : 

I'ostal convention, universal (1939) : Adherence on 
behalf of, 315. 
French Somaliland ; Suspension of parcel-ijost service, 

721. 
Friendship, commerce, and navigation treaties. See 
Commerce under Treaties, agreements, etc. 

Gauss, Clarence E., American Minister to Australia : 

Confirmation of nomination, 49. 
Geist, Raymond H., Chief, Division of Commercial 
Affairs of the Department : Addresses on foreign 
trade, 473-479, 581-584 ; appointment, 363. 
Germany (sec also Europe) : 

American boy killed in bombing of Kliugenstein, 647. 
American Consulate at Konig.sberg, 148. 
American security zone ; Violation, 203-205. 
Blockade of exports by Great Britain, 5, 434-435. 
Danzig, Free City of; End of membership in In- 
ternational Telephone Consulting Committee, 
125. 
Evacuation of foreign diplomatic and consular 

establishments in Poland, 319. 
"Hannover": Sinking of, 568-569. 
Leukemia : Investigation of dure,. 145. 
Parcel-post service; Suspension, 720. 
U. S. note on European possessions in Western 

Hemisphere, 681-682. 
"Wakama" : Sinking of, 306. 
White Book, 335-336, 362. 
Godthaab, Greenland: American Consulate at, 473. 
Golden Gate International Exposition, 84. 
Grady, Henry F., Assistant Secretary of State; Ad- 
dresses, etc., 38-41, 63-76, 76-81, 97-101, 101-105, 
10,5-109, 182-ia5, 20&-207, 232-238, 260-268, 
391-.397, 686-689. 



Great Britain (see also Europe) : 
American Consulate at Hull, 365. 
American security zone : Violation, 199-201, 306. 
Americans; Warning to evacuate, 542-543. 
Blockade of German exports, 5, 434-435. 
Debt to U. S., 649-650. 
Hague conventions ; Violations, 3, 306. 
Treaties, agreements, etc. ; 
Educational films, proc&s-verbal : Signature, 272- 

273. 
Peace, amendatory treaty for advancement of 

(U. S. and Union of South Africa), 365-366. 
Permanent Court of International Justice, op- 
tional clause of Statute, termination and new 
conditions of acceptance, 423-424. 
Refugees from Germany, arrangement and addi- 
tional protocol; Signature, 126. 
Telecommunication, Cairo revisions (1938) ; Res- 
ervations accepted by colonies, 480-481. 
War-trade policies : Conversations of representatives 
with those of France and U. S., 434—135. 
Great Lakes - St. Liiwrence waterway, proposed treaty, 

U.S. and Canada, 14, 124-125. 
Great Lakes fisheries; Board of Inquiry, U. S. and 

Canada, 273-274. 
Greece : 

Minister to U. S. (Diamantopoulos) : Presentation 

of credentials, 173-174. 
Parcel-iKJst service: Susi)ension, 721. 
Treaties, agreements, etc. ; 

Air traffic, liquid fuel and lubricants used in ; 

Ratification, .587. 
Permanent Court of Internation'al Justice, oj)- 
tional clause of Statute ; Renewal of accept- 
ance, 398. 
Postal convention, universal (1939) ; Ratification, 

220. 
Sanitary convention of 1926, modification (1938) ; 

Ratification, 273. 
Telecommunication, Cairo revisions (1938) ; Ap- 
proval, 125. 
Green, William, President, American Federation of 
Labor ; Correspondence with Secretary Hull on 
trade agreements, 42. 
Greenland ; 
American Consulate at Godthaab, 473. 
Parcel-ix)st service; Suspension, 720; resumption, 
721. 
Guatemala : 
Extradition treaty with U. S., 220. 
Professors and students : Exchange with U. S., 357- 
361. 

Habana, Permanent Committee of, 159. 
Habana Meeting of Ministers of Foreign Affairs of 
American Republics, 705-706. 



734 



DEPARTMENT OF STATE BULLETIN 



Hague conventions : Violations by Great Britain, 3, 

306. 
Haiti : 

Anniversary of independence, 10. 

Profe.ssors and students : Exchange with U. S., 357- 

361. 
Treaties, agreements, etc. : 

Pacific settlement of international disputes, decla- 
ration by Canada : Noted, 585. 
Permanent Court of International Justice, op- 
tional clause of Statute, declaration by Can- 
ada : Noted, 585-586. 
Hannevlg, Christoffer : Claim against U. S., 351. 
"Hannover" : Sinking of, 568-569. 

Harriman, Mrs. Florence J., American Minister In Nor- 
way, 376. 
Harvard University : Address of Secretary Hull at 

commencement, 683-685. 
Health. Sfc Public health ; Treaties, agreements, etc. 
Helium : Exportation, 121, 190, 331, 421, 552, 698. 
Helsinki, Finland : Bombing, 56. 
Highway, Tran.s-Isthmiau Joint Board : U. S. and 

Panama, 1.50. 
Honduras : Exchange of professors and students with 

U. S., 357-361. 
Hook, Frank E., U. S. Representative: Correspondence 
with Secretary Hull on petroleum exports to U. S. 
S. R., 195. 
Hosmer, Charles B., Executive Assistant to Assi.stant 

Secretary of State : Designation, 186. 
House of Representatives. See United States Congress. 
Hull, Cordell: 
Addresses, etc. — 

American Society of International Law, 532-535. 

Bannerman, Robert C. : Death, 269. 

Borah, William E. : Death, 82. 

Eighth American Scientific Congress, 537-538. 

European visit of Under Secretary Welles, 172. 

Finley, John H. : Death, 284. 

German invasion of Denmark and Norway, 373. 

German White Book, 335-336. 

Great Lakes - St. Lawrence waterway project, 124. 

Harvard University commencement, 683-685. 

International outlook for 1940, 11-12. 

Nanking, China, new regime, 343. 

National Foreign Trade Week, 571-574. 

Netherlands Indies : Maintenance of status quo, 

411, 493-^94. 
Pan American Union : Special session in honor of 

President-elect of Costa Rica, 344. 
Trade-agreements program: Extension, 129, 284, 
364 ; hearings of House Ways and Means 
Committee, 29-38; of Senate Finance Com- 
mittee, 225-232. 
Correspondence — 

European possessions in Western Hemisphere: 
With Representative Bloom, 619-620. 



Hull, Cordell— Continued. 
Correspondence — Continued. 

Exports of petroleum to U. S. S. R. : With Rep- 
resentative Hook, 195. 
Foreign debts to U. S., 648, 649. 650, 651, 652.-653, 

654, 655, 655-656, &56-&57, 657, 658, 659-660. 
German White Book: With Representative Fish, 

362. 
Inter-American Bank convention: With Chairman 
of Inter-American Advisory Committee, 305- 
306. 
Neutrality Act of 1939: With Attorney General, 

295-305. 
Relations with U. S. S. R. : With Senator Pitt- 
man, 153-155. 
Resignation of Ben M. Cherrington as Chief of 
Division of Cultural Relations of the De- 
partment, 717-718. 
Scholarships to New York colleges for students 
from other American republics : With Mayor 
La Guardia, 679-680. 
Trade agreements : With President Green of 

American Federation of Labor, 42. 
Travel between American republics : With Presi- 
dent Taylor of American Merchant Marine 
Institute, 28-29. 
U. S. ships, search by Great Britain: With the 
British Ambassador, 4-5. 
Departmental orders? — 

Accounts, Division of the Department : Appoint- 
ments of chief and assistant chief, 363. 
Assignments of duties of Department ofBcials, 

186. 
Commercial Affairs, Division of the Department : 
Establishment, 268; appointment of chief, 363. 
Fiscal and Budget Affairs, Office of the Depart- 
ment : Appointments of chief and assistant 
chief, 186. 
Instructions to Minister Cromwell concerning ad- 
dress on policies of governments, 324. 
Luncheon In honor of President-elect of Costa Rica, 

344-345. 
Messages of congratulation, sympathy, etc. — 
Argentina : Buenos Aires floods, 410. 
Canada : Death of the Governor-General, 175. 
Costa Rica : Departure of the President-elect from 

U. S., 410. 
Dominican Republic : Death of the President, 281. 
New Zealand : Death of the Prime Minister, 348. 
Norway, American Minister in, 376. 
Panama : Fire at Colon, 409. 

Switzerland : Death of the Chief of Political De- 
partment, 96. 
Regulations — 

Relief contributions to belligerents, 432, 492, 644. 
Transfer of title to merchandise for belligerents, 
432, 491-192, 643. 



IMiKX 



735 



Hull, Coi-dcll — C'ciiitiiUKMl. 
Iti'iriilatiiiiis — Cii7itimu'(l. 
Travel of Americans in liollisei'enl aircraft (ivcr 
Canada, 612 ; on vessels in combat areas, 5(1, 
37!). 4.S1-432, 492, 560, 610-611, fi44, 644-645, 
646, 707. 
Hull, England: American Consulate at, Se.'j. 
Hungary : 

Debt to U. S., 6.'i'-'-6.-)4. 

International Office of Public Healtb. arrangement : 

Adherence, 15. 
Parcel-post service: Suspension, 721. 

Iceland : 

American Consulate at Reykjavik, 414. 422. 434. 
Telecommunication convention, Cairo revisions 
(1938) : Approval, 51. 
Immigration and naturalization : 

Executive orders regulating, 620-621, 622-624. 

Quotas: Control of, 682. 

U. S. Service: Transfer to Department of Justice. 

610. 
Visas: Regulations, 666-667; statistics, 214-217. 
Imports into U. S. {see also Exports from U. S. ; 
Trade-agreements program) : 
Address by Mr. Deimel, 506-510; by Mr. Geist, 473- 

479. 
Arms and munitions, 119, 188-189, 330, 420, 551, 
697. 
Income tax, double, convention : U. S. and Sveeden, 

718-719. 
India : 
Permanent Court of International Justice, optional 
clause of Statute, termination and new condi- 
tions of acceptance, 451^.53. 
Telecommunication convention, Cairo revisions 
(1938) : Acceptance, 481. 
Indian Life, First Inter-American Congress, 389. 
Indigenous workers : Draft conventions and recom- 
mendations of International Labor Conference, 
670. 
Indochina, French : 
Postal convention, universal (1939) : Adherence on 
behalf of, 315. 
Incpiiry, Commissions of: U. S. and — 
China, 48. 

Union of South Africa, 365-366. 
Institute of Public Affairs, University of Virginia: 

Addresses of Department officials, 660, 676. 
Intellectual cooperation, international act, 511. 670. 
Intellectual property (cojiyrigbt), treaty: Adoption by 

Ct)nference of Jurisconsults, 631. 
Inter-American relations {see also Commissions, etc.; 
Conferences, etc. ; Neutrality, etc. ; Trade-agree- 
ments program ; Treaties, agreements, etc. ; and in- 
dividual countries) : 
268291—40 3 



Inter-American relations — Continued. 
Addres.ses, etc., relating to. by Mr. Berle, 166-169, 
257-260, 464--165, 676-679; Mr. Braden, 383- 
389; Mr. Briggs, 6-10; Dr. Cherrington, 660- 
6(!6; Mr. Duggan, 40.5-409; Mr. Edminster, 238- 
245; Dr. Fenwick, 470-472; Mr. Grady, 266-268; 
Dr. Kelchner, 57-63 ; President Roosevelt, 403-KI5. 
All America Youth Orchestra, 6G6. 
Arbitratiim Day, 383. 
Aviation: Development, S: U. S. military mission 

to Argentina, 719-720, and to Chile. 4.53. 
Bank, Inter-American : Convention establishing, 
305-306. 512-522; history, .522-523; organiza- 
tion, 518-519, 524; powers, 520-.522. .525; pur- 
poses, .520, 523-!">24; rights and privileges, 525; 
U. S. participation, 524-525. 
Christian morality : Maintenance, 542. 
Claims, agrarian, U. S. and Mexico: Extension of 
adjudication period, 626-627 ; payment by Mex- 
ico, 706. 
Cooperation (see also Economic relations) : 
U. S. Interdepartmental Committee on, 171. 
U. S. loan to other American republics of techni- 
cal and administrative officials, 170-172. 
Cultural relations, 9-10, 161, 252-253, 279-281, 311- 
313, 315, 357-361, 569-570, 664-665, 666, 679-680. 
Economic relations, 266-267, 67.5-679, 687-689, 706. 
Exchange professors and students, 279-281, 357-361. 
Lima, Declaration of, 61. 
Oil properties of U. S. nationals : Expropriation by 

Mexico, 380-383, 46.5-470. 
Pan American Day : Proclamation by President of 

U. S., 165. 
Panama, Declaration of, 7-8, 61-62, 199-204 passim, 

568, 569. 
Principles governing, (50-61. 
Radio education, 2.52-2.53. 

Scholarships to New York City colleges, 679-680. 
Security zone, 199-205, 306, 568-569. 
Smuggling, repression of : Ratitication by Chile, 220. 
Travel America Year : Proclamation by President 
of U. S., 28. 
Intergovernmental debts. Sec Debts. 
Interior, Department of: Transfer of Dominican Cus- 
toms Receivership to Department of State. 3!I7. 
International commissions, committees, conferences, 

etc. See Commissions, etc. ; Conferences, etc. 
International Conferences, Division of the Depart- 
ment : Appointment of Warren Kelchner as Chief, 
85. 
International law: 
Address of Secretary Hull before Society of, 532-535. 
Codification, Conference for, conventions and proto- 
cols : Application to Burma, 615. 
Jurisconsults, Conference of: Treaties adopted by, 
631. 



736 



DEPARTMENT OF STATE BULLETIN 



liifernatinnal law — Continued. 
Neutrality violatidn of Belgium, Luxemburg, and 
Netherlands : Joint protest by American repub- 
lics, 541-542, 568. 
Powers of attorney, protocol, 287-290, 424, 615, 632. 
Treaties valuable in development of, 506. 
Iran: 

Maritime buoyage agreement : Adherence, 149. 
Minister to U. S. (Schayesteh) : Presentation of 

credentials, 174. 
Parcel-post service: Suspension, 721. 
Iraq : 
Parcel-post service: Suspension, 721. 
Treaties, agreements, etc. : 
Commerce and jiavigatiou, witli U. S. : Ratifica- 
tion, 586; proclamation by President of U. S.. 
616. 
Educational films, proces-verbal (1938) : Signa- 
ture, 555. 
Employment of children at sea (revised 1936) : 

Ratification, 191-192. 
Prisoners of war (1929) : Arabic translation, 272. 
Ked Cross Convention (1929) : Arabic transla- 
tion, 272. 
Workmen's compensation (192.1) : Adherence, 632: 
ratification, 701. 
Ireland: Universal postal convention (1934), ratifi- 
cation, 220-221. 
Italy : 
Colonies : 

Parcel-post service: Susijension, 721. 
Universal postal convention (1939) : Adherence, 
315. 
Debt to U. S., 6.'50-651. 
Entry into war, 636-637. 

Mussolini : Correspondence with President Roose- 
velt, 636-637. 
Parcel-post service: Suspension, 721. 
Treaties, agreements, etc. : 
Air traffic, exemption from taxation of liquid 

fuel and lubricants : Ratification, 27:3. 
Aircraft : 

Assistance and salvage at sea : Ratification, 273. 
Damages caused by : Ratification, 273. 
Postal convention, universal (1939) ; Adherence, 
315. 
U. S. note regarding European possessions in West- 
ern Hemisphere, 681-«82. 

.Japan (kcc nlxo Far East) : 

Arbitration. Permanent Court: Appointment, 511. 

Bombings in China, 412, 666. 

National anniversary, 175-176. 

Prince Ti>kugawa : Death, 627. 
Joint Board of Inquiry for Great Lakes fisheries: 
U. S. and Canada, 273 274. 



Joint Commission on Souris (Mouse) River: U. S. 

and Canada, 82-83. 
Joint Highway Board : U. S. and Panama, 150. 
Jones, George R. : Claim against Norway, 3.51. 
Jurisconsults, Conference of, 631. 
Justice, Department of: Transfer of Immigration and 

Naturalization Service to, 610. 
Justice, International, Permanent Court, optional 

clause of Statute, 87-SS, 190-191, 272, 286, 332, 

350, 366, 398, 423-424, 451-453, 554-555, 585-586, 

614-615, 699. 

Kelchner, Warren, Chief, Division of International 
Conferences of the Department : Address on inter- 
American relations, 57-63; appointment, 85. 

Kiinigsberg, Germany : American Consulate at, 148. 

La Guardia, Mayor of New York City : Correspondence 
with Secretary Hull on New York college scholar- 
ships for students from other American republics, 
679-680. 
Labor (sec also Conferences, etc. ; Treaties, agreements, 
etc.) : 
American Federation : Correspondence between Presi- 
dent Green and Secretary Hull, 42. 
Benefits of trade agreements, 74-76, 81. 
Department of: Transfer of Immigration and 
Naturalization Service to Department of 
Justice, 610. 
Bligrants, employment : Draft convention and recom- 
mendations of International Labor Conference, 
670. 
Ladies Garment Workers Union, International : Address 

of Mr. Berle before, 597-598. 
"Lansing Papers, 1914-1920", 205-206, 270-271. 
Latvia : 

Debt to U. S., 655-656. 
Parcel-post service : Suspension, 721. 
Intellectual cooperation, international act : Ratifica- 
tion, 511. 
Law, international. See International law. 
League of Nations Covenant, protocol of amendment : 

Ratification by Lithuania, 366. 
Lebanon, Republic of: Suspension of parcel-post serv- 
ice, 721. 
Legislation {see also United States: Congress), 88, 162, 
291, 351, 368, 397, 456-457, 482, 553, 587, 613, 627, 671, 
702. 
Ix'opold, King: Correspondence with President Roose- 
velt, 492-493. 
Leukemia, 145. 
Liberal profession.s, treaty: Adoption by Conference of 

Jurisconsults, 631. 
Library of Congress, dedication of Columbus Arms 
Mural: Address by lender Secretary Welles, 596- 
597. 
Lima, Declaration of, 61. 



INDEX 



737 



Liquid fuel and lubricants used in air traffic, conven- 
tion : Ratitication by Greece, 587 ; by Italy, 273. 
Lithuania : 
Debt to U. S., 656-657. 
National anniversary, 173. 
Parcel-post service: Suspension, 7L'l. 
Treaties, agi-eenients, etc. : 
Consular : With U. S., 512. 

League of Nations Covenant, protocol nf amend- 
ment : Ratification, 366. 
Parcel post: With V. S., 88. 
Logsdon, Ella A., Chief, Office of Fiscal and Hudget 

Affairs of the Department : Appointment, 186. 
Long, Breckinridge, Assistant Secretary of State: 
Addresses, on trade agreements, 176-181 ; on foreign 

policy, 462^64. 
Appointment, 138; confirmation of nonjinafion, t!>; 
assignment of duties, 186. 
Losey, Capt. Robert M., American Military Attaclu': 

Death in Norway, 433. 
Luxemburg (see also Europe) : 

American Minister: Resignation (Davies), 123-124: 

confirmation of nomination (Cudahy), 49. 
Grand Duchess Charlotte : Birthday, 96. 
Parcel-post service : Suspension, 721. 
Property in U. S. : Executive order, 493. 

Mails, U. S. : Treatment by Great Britain, 3, 91-03, 196. 
Malta : Suspension of parcel-post service, 721. 
"Manhattan" : Repatriation of American citizens, 611, 

624, 625, 706. 

Maritime buoyage agreement : Adherence by Iran, 149. 

McClure, Wallace, Assistant Chief, Treaty Division of 

the Department : Addresses, on trade agreements, 

207-214 : on peace, 307-314. 

"McKeesport" : U. S. regulations regarding combat 

areas, 646. 
Medellin, Colombia : American Consulate at, 451. 
Merchant Marine Institute, American : Letter of Sec- 
retary Hull to President Taylor, 28-29. 
Messersmith, George S., American Ambassador to 

Cuba : Confirmation of nomination, 49. 
Mexico: 

Agrarian claims of U. S. citizens : Extension of 

adjudication period, 626-627 ; payment, 706. 
American tourist killed in, 29. 

Ensenada: Tran.sfer of American Consulate to Ti- 
juana, 668. 
Oil properties of U. S. nationals: Expropriation, 

380-383, 465-^70. 
"Spanish Swindle": Warnings against, 612-613. 
Treaties, agreements, etc. : 

Aircraft, assistance and salvage at sea : Approval, 

512. 
Bank, Inter-American : Signature, 512. 
Broadcasting, regional : Ratification, 14-1.5, 192, 
368. 



Mexico — Continued. 
Treaties, agreements, etc. — Continued. 

Cultural relations, inter-American : Ratification, 

161. 
Intellectual cooperation : Approval, 511. 
Postal convention, universal (1939) : Approval, 

525-526. 
Sanitary convention of 1926, modification (1938) : 
Approval, 511-512. 
I'. S. regidations regarding Mexican commuters, 
666-667. 
Migrants, employment : Draft convention and recom- 
mendations of Inlernational Labor Conference, 
670. 
.Ministers of Foreign Affairs of American Republics, 
Meetings at — 
Habana : Tentative agenda, 705-706. 
Panama, 7, 61: 

Christian morality : Maintenance, ■'i42. 
Declaration of, 7-S, 61-62, 199-204 passim, 568, 569. 
Financial and Economic Advisory Committee, 9, 

62, .S(l5-306, .522. 
Neutrality Committee, 470-472. 
Monaco: Extradition treaty with U. S., 332, 3o0. 
"Mormacsea" : Departure from Norway, 377-378. 
Morocco : Suppression of circulation of obscene publi- 
cations, convention, adherence, 699. 
Most-favored-nation policy, 32-33, 71-72, 80, 185, 210- 

211, 229-230. 
Motta, Giuseppe, Chief of Swiss Political Depart- 
ment: Death, 96. 
Munitions. See Arms and munition.?. 
Mu.ssolini : Correspondence with President Roosevelt, 
636-637. 

Nanking, China : Statement of Secretary Hull on new 

regime, 343. 

Narcotic drugs : Convention on traffic in, 220, 315. 

National Foreign Trade Week : Addresses by Mr. Ed- 

miuster, 574-.5S1 ; Mr. Geist, 581-584; Secretary 

Hull, 571-574 ; message of President Roosevelt, 571. 

Naturalization and Immigration Service : Transfer to 

Department of Justice, 610. 
Nauru : 

Educational films, proces-verhal : Signature on be- 
half of, 125. 
Postal convention, universal (1939) ; Acceptance on 
behalf of, 399. 
Navigation (see also Commerce, international) : Inter- 
national agreement and rules regarding maritime 
buoyage (1936), adherence by Iran, 149. 
Near East: Warnings to Americans to evacuate, 560. 
Netherlands (see also Europe) : 
Americans : Welfare, 4S6, 544. 

Arbitration, Permanent Court: Appointment, 5.54. 
Parcel-post service: Suspen.sion, 721. 
Property in U. S. : Executive order, 493. 



738 



DEPARTMENT OF STATE BULLETIN 



NelheiiMiuls — Continupd. 
Treaties, nKVPpmeiits, etc. : 

Arbitration clauses, protocol: Withdrawal of 

reservation, .'iSG. 
Intellectual cooperation: Ratification, !J11. 
Pacific settlement of international disputes, 
declarations of Australia and Canada : Noted, 
86-87, 219, 271-272. 
Permanent Court of International Justice, op- 
tional clause of Statute, declarations of Aus- 
tralia, Canada. France, Great Britain, India, 
New Zealand, Union of South Africa : Noted, 
87-88, 272. 
Wages and hours of work in industries and agri- 
culture, statistics: Ratification, 425. 
White lead in painting: Ratification, 192. 
Netherlands Indies : 

Arbitration clauses in commercial matters, protocol, 
partial withdrawal of reservation in respect of, 
586. 
Status quo. maintenance: Statements of Secretar.v 

Hull, 411, 493-494. 
U.S. policy regarding, 463. 
Neutral countries: r>ii)lomatic conversations on peace, 

153. 
Neutrality of American republics (.see also American 
republics ; Inter-American relations ; Ministers of 
Foreign Affairs, etc.) : 
Inter-American Neutrality Committee, 470-472, 569. 
Security zone, 199-205, 306, 568-569. 
Neutrality of U. S. (.see also Arms and munitions; 
Europe; Relief, etc.; U. S. national defense) : 
Act of 19S9: Letter from Attorney General to Secre- 
tary Hull, 29.5-305. 
American citizens : 

Travel in belligerent aircraft over Canada, regu- 
lation, 612 ; on belligerent vessels in combat 
areas, regulations, 56, 378-379, 431-432, 492. 
Protection, 462-463. 
Combat areas : Proclamations, 378-379, 432, 641-643 ; 
regulations, 379, 432, .560, 610-611, 644-645, 646, 
707. 
Commerce with belligerents: Anglo-French war- 
trade policies, 434-435 ; transfer of title to mer- 
chandise for belligerents, 432, 491-492, 643. 
Enforcemn'nt : Executive orders, 431, 491, 643. 
Existence of state of war : Proclamations, 429, 489, 

639-640. 
Inter- American Neutrality Committee, 470-472, 569. 
Proclamations, 430, 490, 640. 
Security zone, American : Violations of, 199-205, 306, 

56S-.')6n. 
Territorial waters: Control of vessels, proclama- 
tion, 707-708; use by belligerent submarines, 
procl.iniMlinn.s. 430-431, 490-491, 641. 



Neutrality of U. S.— Continued. 
U. S. ships: 

Calls at belligerent ports: Letter from Attorney 

General to Secretary Hull, 29.5-305. 
Prohibition and warning against entry into com- 
bat areas, 37.8-379. 
Regulations permitting entry into combat areas: 
"McKecsport", 646; "President Roosevelt", 
560; "Washington", 610-611, 707. 
New Guinea : 

Educational films, proces-verbal : Signature on be- 
half of, 125. 
Postal convention, universal (1939) : Acceptance on 
behalf of, 399. 
New Hebrides : Telecommunication convention, Cairo 

revisions (1938), acceptance, 481. 
New York City colleges: Scholarships for students 

from other American republics, 679-680. 
New Zealand : 

Americans : Rescue from S. S. "Niagara", 689-690. 
Prime Minister, Michael J. Savage: Death, 348. 
Treaties, agreements, etc. : 
Aircraft importation : With U. S., 424-425. 
Permanent Court of International Justice, optional 
clause of Statute, termination and new condi- 
tions of acceptance, 554-555. 
Sanitary convention of 1926, modification (1938) : 

Adherence, 50. 
Wages and hours of work in industries and agri- 
culture, statistics : Ratification, 275. 
"Niagara" : Sinking of, 689-690. 
Nicaragua : 

Professors and students : Exchange with U. S., 

357-358, 359, 360. 
Treaties, agreements, etc. : 

Inter-American Bank : Signature, 512. 
Powers of attorney, protocol : Signature, 632. 
Norfolk Island : 

Educational films, proces-verbal : Signature on be- 
half of, 125. 
Postal convention, universal (1939) : Acceptance 
on behalf of, 399. 
Norway (see also Europe) : 

Air service between Scandinavian countries and 

U. S., 130. 
Americans: Death of American Military Attache 
Losey, 433; evacuation, 412, 413, 433-434, 473; 
welfare, 413, 414, 488. 
Hull, Secretary: Statement regarding German in- 
vasion, 373. 
Parcel-post service: Suspension, 720-721. 
Roosevelt, President : Statement regarding German 

invasion, 373. 
Treaties, agreements, etc. : 

Claims: With U. S. (Hannevig and Jones), 351. 
Intellectual cooperation: Ratification, 511. 



INDEX 



739 



Norway — Continued. 

Treaties, agreements, etc. — Coutiniietl. 

Pacific settlement of international disputes, dec- 
larations of Austi-alia and Canada : Noted, 
219, 451. 
Permanent Court of International Justice, op- 
tional clause of Statute, declarations of Aus- 
tralia, Canada, Prance, Great Britain, India, 
New Zealand, Union of South Africa : Noted, 
190, 191, 453. 
Seamen's articles of agreement : Ratification, 481- 

482. 
Telecommunication, Cairo revisions (1938) : Ap- 
proval, 221. 
Wages and hours of work in industries and agri- 
culture, statistics : Ratification, 481^82. 
U. S. neutrality proclamations and regulations, 
429-432. 
Norweb, R. Henry, American Ambassador to Peru : 
Confirmation of nomination, 49. 

Oberlin College : Address on irenics by Dr. McClure, 
307-314. 

Ob.scene publications, convention on suppression of cir- 
culation : Adherence by Morocco, 699 ; ratification 
by France, 290-291. 

Oil pr()perties of U. S. nationals : Expropriation by 
Mexico, 3S0-383, 46.>-470. 

Ortiz, Scnora de : Death, 362, 390. 

Pacific settlement of international disputes, 86-87, 

191, 219, 271-272, 286, 332, 423, 451, 585. 
Palestine: Suspension of parcel-ijost service, 721. 
Pan American Conference of National Directors of 

Health, Fourth (Washington, D. C), 479. 
Pan American Congress of Architects, Fifth (Monte- 
video), 158-1.')9. 
Pan American Congress of Commercial Agents, Sec- 
ond (Rio de Janeiro), 526. 
Pan American Day, 165, 403-405, 405-409. 
Pan American Exposition of Architecture and City 

Planning, Fifth (Montevideo), 1.59. 
Pan American Highway : U. S. tourist killed, 29. 
Pan-American relations. See Inter-American rela- 
tions. 
Pan American Sanitary Bureau: Address before, by 

Mr. Berle, 464-465. 
Pan American Union : 

Addre&s before, by Mr. Duggan, 405-409; Secre- 
tary Hull, 344; President Roo.sevelt, 403-405. 
Organization and duties, 59. 
Relation to world organization, 57-63. 
Report on powers of attorney protocol by commit- 
tee of experts, 287. 
Panama : 

Anil)assador to U. S. (Boyd) : Presentation of cre- 
dentials, 156-158. 
Colon fire, 409. 



Panama — Continued. 

Declaration of Panamfi, 7-8, 61-62, 199-204 passim, 

568, 569. 
Ministers of Foreign Affairs of American republics : 

Meeting, 7, 61, 542. 
Professors and students : Exchange with U. S., 357- 

358, 359, 360. 
Treaties, agreements, etc. : 

Powers of attorney, protocol : Signature, 424. 
Trans-Isthmian Highway convention : Joint Board 
with U. S. under, 150. 
Papua : 

Educational films, proces-verbal : Signature on be- 
half of, 125. 
Postal convention, universal (1939) : Acceptance on 
behalf of, 399. 
Paraguay : 

National anniversary, 542, 570. 
Treaties, agreements, etc. : 
Aerial navigation, international : Adherence, 161- 

162. 
Bank, Inter-American: Signature, 512. 
Cultural relaiion.s, inter-American : Ratification, 

315. 
International law (civil, commercial, penal, and 
processal), and commercial navigation, treaties 
and additional protocol adopted by Conference 
of Jurisconsults (1940) : Signature, 631. 
Parcel-post. See Treaties, agreements, etc. ; nUo the 

individual countries. 
Paris, France, 625, 646-647, 682. 
Passport statistics (see also Visas, etc.), 122-123. 
Peace (.see also Pacific settlement of international dis- 
putes ; Permanent Court of International Justice) : 
Address, by Mr. Braden, 383-389; Dr. Fenwick, 
470-472; Mr. Long, 463; Dr. McClure, 307-314; 
President Roosevelt, 34.5-346, 403—105. 
Treaties, agreements, etc. : 350-351, 365-366, 453-456. 
Penal law, revisetl treaty: Adoption by Conference 

of Jurisconsults, 631. 
Permanent Committee of Habana, 159. 
Permanent Court of Arbitration, appointments to, 50- 

51, 398, 511, 554, 699. 
Permanent Court of International Justice, optional 
clause of Statute, 87-88, 190-191, 272, 286, 332, 
350, 366, 398, 423-424, 451-453, 554-555, 585-586, 
614-615, 699. 
Peru : 
American Amba.ssador (Norweb) : Confirmation of 

nomination, 49 
Professors and students: Exchange with U. S., 

357-358, 360-361. 
Treaties, agreements, etc. : 
International law (civil, commercial, penal, and 
processal), and commercial navigation, treaties 
and additional protocol adopted by Conference 
of Juri.sconsults (1940) : Signature, 631. 



740 



DEPARTMENT OF STATE BULLETIN 



Peru — Continued. 
Treaties, agreements, etc. — Continued. 

Permanent Court of Internatloual Justice, op- 
tional clau.se of Statute, declarations of 
Australia, France, Great Britain, New Zea- 
land, Union of South Africa : Noted, 350. 
Petroleum products: Exports to U. S. S. R., 195. 
Peynado, Jacinto Bienvenido, President of Dominican 

Republic: Death, 281, 306-307. 
Philippines, Commonwealth of: Universal postal con- 
vention (193!)), ratification, 425. 
Pittman, Key, U. S. Senator: Correspondence with 

Secretary Hull on Soviet relations, 153-155. 
Poland : 
Americans : Respon.sibility of American Embassy in 

Berlin for, 319. 
Debt to U. S., 6.57-658. 
Foreign diplomatic and consular establishments: 

Evacuation by Germany, 319. 
Intellectual cooperation, international act : Ratifi- 
cation, 511. 
Parcel-post service : Suspension, 720. 
Political refugees: Treaty adopted by Conference of 

Jurisconsults, 631. 
Pope Pius XII : Letter to President Roosevelt regarding 

personal representative to the Vatican, 130-132. 
Portugal : 

Intellectual cooperation, international act : Ratifi- 
cation, 511. 
National-anniversary celebrations, 544, 707. 
Postal agreements and conventions. See Treaties, 

agreements, etc. 
Powers of attorney, protocol, 287-290, 424, 615, 632. 
President, U. S. Sec Roosevelt, Franklin D. 
"President Roosevelt", 559-560, 610, 611, 624. 625. 
Prisoners of war, convention on treatment, 272, 398. 
Processal law, revised treaty : Adoption by Confer- 
ence of Jurisconsults, 631. 
Proclamations : 

Combat areas, 378-379, 432, 641-643. 
Existence of state of war, 429, 489, 639-640. 
Neutrality, 430, 490, 640. 
Pan American Day, 165. 

Territorial waters of U. S. : Control of vessels, 707- 
708 ; use by belligerent submarines, 430-431, 
490-491, 641. 
Travel America Year, 28. 
Professional drivers of private vehicles : Recommenda- 
tion of International Labor Conference, 671. 
Professors and students: Exchange with other Ameri- 
can republics, 279-281, 357-361, 679-680. 
Property in U.S. Sec individual countries. 
Public health [sec uIko Treaties, agreements, etc.: 
Sanitary convention) : 
Address by Mr. Berle, 464-465. 
International Ofiice, arrangement for establish- 
ment : Adherence by Hungary, 15. 



Public health — Continued. 
National Directors of : Fourth Pan American Con- 
ference, 479. 
I'ublications (see also Regulations, etc.) : 
Obscene publications, treaty of 1923: Adherence by 

Morocco, 699; ratification by France, 290^291. 
U. S. Department of State : 

Address by Dr. Spaulding on, 599-602. 
"Lansing Papers: 1914-1920", 205-206, 270-271. 
List, 52, 88, 126, 148, 192, 271, 285-286, 316, 331, 
352-353, 425, 526, 556, 587, 616, 627, 669, 722- 
723. 
"Territorial Papers of the United States" : Vol- 
umes VII and VIII, 285. 
U. S. Congress, 12, 88, 162, 291, 351, 368, 397, 456- 

457, 482, 553, 587, 613, 627, 671, 702. 
Other U. S. Government agencies, 12, 126, 316, .368-369, 
556, 627, 702. 

Quotas, U. S. immigration : Control of, 682. 

Radio: 

Education by, 252-253. 

Conventions and arrangements. See Treaties, agree- 
ments, etc. : Telecommunications. 
Radiocommunications, International Consultative 
Committee (C.C.I.R.), 51. 
Reconstruction, economic, 99-100, 101-10.">, 100, 139-142, 

266, 461, 464, 631. 
Red Cross : 

American : Voyage of "McKeesport" through combat 

area, 646. 
Belgian : Collaboration with Army Health Service, 

125. 
Canadian : Assistance to army authorized, 511. 
Convention (1929) : Arabic translation, 272. 
Refugees : 

German: Protocol to provisional arrangement (1936) 
and convention (1938) concerning status, sig- 
nature by Great Britain, 126. 
Political, treaty adopted by Conference of Juris- 
consults, 631. 
Regulations of U. S. Government agencies (see also 
State, Department of), 350, 493, 682, 707-708, 718- 
719, 723. 
Relief to belligerents, U. S. contributions : 

Funds, tabulations, 21-26, 132-138, 24.5-2.52, 3:36-342, 

436-442, 560-567, 708-715. 
Registrant lists, 20-21, 155-156, 283, 443-450, 628. 
Solicitotion, regulations, 432, 492, 644. 
Reorganization Plans: No. IV, proposed transfer of 
Dominican Customs Receivership to Department 
of State, 397; No. V, proposed transfer of Immi- 
gration and Naturalization Service to Department 
of Justice, 610. 



INDEX 



741 



Repatriation of Americau citizens. See Enropo : 

American citizens, etc. 
Representatives, House of. See U. S. Congress. 
Reykjavik, Iceland : American Consulate at, 414, 422, 

434. 
Reynaud, Premier of France : Correspondence with 

I'resideut Roosevelt, 638, 630. 
Rights and duties of states, inter-American conven- 
tion : Ratification by Venezuela, 219. 
Road tran.sport : Draft conveution and recommenda- 
tions of International Labor Conference, 670, 671. 
Rodriguez, Luis Ferniindez, Costa Rican Minister to 

U. S. : Presentation of credentials, 680-681. 
Roo.sevelt, Franklin D. (see also Executive orders; 
Proclamations) : 
Addresses, etc. — 

Borah, William E. : Death, 81-82. 
Christian Foreign Service Convocation, 34.5-340. 
Eighth American Scientific Congress, 494-^96. 
European visit of Under Secretary Welles, 155, 

335. 
Finnish-Soviet relations, 295. 
Foreign diplomatic representatives : Presentation 

of credentials, 158, 173-174, 282, 681, 716. 
German invasion of Denmark and Norway, 373. 
Inter-American economic cooperation, 675-676. 
National defense, 591-596. 
National Foreign Trade Week, 571. 
Pan American Day, 403^05. 
Trade-agreements program : Extension, 390-391. 
University of Virginia, 635-638. 
Cabinet dinner honoring, 283-284. 
Correspondence — 

Aid to France : With Premier Reynaud, 638-639. 
Invasion of Belgium: With King Leopold, 492- 

493. 
Nonparticipation of Italy in the war: With Mus- 
solini, 636-637. 
Resignation of American Ambassador to Belgium 

and Minister to Luxemburg, 123-124. 
Resignation of American Minister to Canada, .584- 
585. 
Messages of congratulation, sympathy, etc. — 
Argentina : Anniversary of independence, 570; 
Buenos Aires floods, 410; death of the wife 
of the President, 362. 
Canada : Death of the Governor General, 175. 
Costa Rica : Departure of the President-elect 

from U. S., 410. 
Cuba : Anniversary of independence, .570. 
Dominjcan Republic : Anniversary] of independ- 
ence, 253; death of the President, 281. 
Egypt : Birthday of the King, 174-175. 
Estonia : Anniversary of independence, 198. 
Haiti: Anniversary of independence, 10. 
Japan : National anniversary, 175-176. 



Roosevelt, Franklin D. — Continued. 

Messages of congratulation, etc. — Continued. 
Lithuania : National anniversary, 173. 
Luxemburg: Birthday of the Grand Duchess, 96. 
Paraguay : National anniversary, 542. 
Switzerland: Death of the Chief of Political De- 
partment, 96. 
Messages to Congress — 
Aid to Finland, 55. 

International Labor Conference : Draft conven- 
tions and recommendations, 670-671. 
National defense, 529-532. 
Reorganization Plan : No. IV, 397 ; No. V, 610. 
Personal representative to Vatican, 130-132. 
Rumania : 

Debt to U. S., 658-660. 

Intellectual cooperation, international act: Ratifi- 
cation, 511. 
Parcel-post service: Suspension, 721. 

St. Lawrence - Great Lakes waterway project : Treaty 

negotiations, 14, 124-125. 
St. Pierre-Miquelon : American Consulate at, 148. 
Sanitary conventions. Sec Treaties, agreements, etc. 
Saudi Arabia : 
American Minister (Fish) : Appointment, 159. 
Diplomatic relations with U.S.: Establishment, 1.59. 
Parcel-post service : Suspension, 721. 
Savage, Michael J., Prime Minister of New Zealand: 

Death, 348. 
Scandinavian countries: Evacuation of Americans, 

377; trans-Atlantic air service with U. S., 130. 
Schaye.steh, Mohammed, Iranian Minister to U. S. : 

Presentation of credentials, 174. 
Scientific Congress, Eighth American, 83-84, 450, 
494-199, 537-541 : 
Address by President Roosevelt, 494-496; Secre- 
tary Hull, 537-538; Under Secretary Welles, 
539-541. 
Delegation, U. S., 496-497. 
Program, 497-499. 
Scotland : American Consulate at Dundee, 148. 
Scotten, Robert M., American Minister to Dominican 

Republic : Confirmation of nomination, 49. 
Seamen : Ex. Or. regarding entrance into U.S., 620-621. 
Seamen's articles of agreement, convention : Ratifica- 
tion by Norway, 481-^82. 
Secretary of State, U. S. Sec Hull, Cordell. 
Securities and currency, foreign: Agreement, U. S. 

and Canada, 699-701. 
Security zone, American, 199-205, 306, 568-569. 
Senate, U S. See United States : Congress. 
Seni Pramoj, Mom Rajawongse, Thai Minister to 

U. S. : Presentation of credentials, 716. 
Ships, U. S. See Europe; Neutrality of U. S. 
Slam. See Thailand. 



742 



DEPARTMENT OF STATE BULLETIN 



Sino-Japanese situation. See Far East. 

Slavery, international convention: Application to 

Burma, .^56. 
Slovakia: Teleconinnuiication convention (1932) and 

Cairo revisions (103.S) : Adherence, 162. 
Smuggling, inter-American convention on repression : 

Ratification by Chile, 220. 
Souris (Mouse) River Commission, U. S. and Can- 
ada, 82-83. 
South America. Hee American republics ; luter- 

American relations; and liidivUhMl countries. 
Southern Rhodesia : Educational films, application of 

proces-verbal, 55.5. 
"Spanish Swindle" : Warnings against, 612-613. 
Spaulding, E. Wilder, Chief, Division of Research and 
Publication of the Department : Address on official 
sources for study of American Foreign policy, 599- 
602. 
Spitzbergen : Suspension of parcel-post service, 

720-721. 
State, Department of (see also Foreign Service of the 
U.S.; Publications) : 
Accounts, Division of : Appointment of Donald W. 
Corrick as Chief and Fred R. Young as Assistant 
Chief, 363. 
Address regarding, by Mr. Grady, 260-268; by 

Dr. McClure, 307-314. 
Advisory Committee on Problems of Foreign Rela- 
tions, 19. 
Appropriations for fiscal year 1941, 603-609. 
Assistant Secretary of State (Long) : Coutirmation 
of nomination, 49 ; appointment, 138 ; duties, 186. 
Chief Special Agent (Bannerman) : Death, 268-270. 
Commercial Affairs, Division of : Establishment, 
268; appointment of Raymond H. Geist as 
Chief, 363. 
Cultural Relations, Division of: 
Chief, resignation (Cherrington), 717-718; ap- 
pointment (Thomson), 718. 
Duties, 312-313. 

General Advisory Committee to, 717. 
Departmental orders, 186, 268, 363. 
Dominican Customs Receivership : Transfer to, 397. 
International Conferences, Division of: Appoint- 
ment of Warren Kelchner as Chief, 85. 
Executive Assistants to Assistant Secretaries of 

State, 186. 
Fi.scal and Budget Affairs, Office: Appointment of 
Ella A. Log.sdon as Chief and B. Leslie Vipond 
as Assistant Chief, 186. 
Regulations : 

Conmierce with belligerents, 432, 491-492, 643. 
Immigration visas for Canadian and Mexican 

commuters, 606-667. 
Relief contributions to belligerents, 432, 492, 644. 



State, Department of — Continued. 
Regulations — Continued. 
Transfer of title to merchandise for belligerents, 

432, 491-492, 643. 

Travel of Americans in belligerent aircraft _ over 

Canada, 612; on vessels in combat area.s, 56, 

378-379, 431-432, 492, 610-611, 644-645, 646, 707. 

Statements, addresses, etc. See names of i/ndividuals 

and specific subjects. 
Stokowski, Leopold : Leader of the All America Youth 

Orchestra, 666. 
Students and professors : Exchange between U. S. 
and other American republics, 279-281, 357-361, 
679-680. 
Surinam : Arbitration clauses in commercial matters, 
protocol, partial withdrawal of reservation in re- 
spect of, 586. 
Sweden : 
Air service between Scandinavian countries and 

U. S., 130. 
Americans : Evacuation, 413. 
Parcel-post service: Suspension, 721. 
Treaties, agreements, etc. : 
Night work in bakeries : Ratification, 192. 
Pacific settlement of international disputes, decla- 
rations of Australia and Canada : Noted, 191, 
286. 
Permanent Court of International Justice, optional 
clau.se of Statute, declarations of Australia, 
Canada, France, Great Britain, India, New 
Zealand, Union of South Africa: Noted, 190- 
191, 286. 
Sanitary convention of 1926, modification (1938) : 

Ratification, 50. 
Taxation, with U. S. : Scoiie of regulations, 718- 
719. 
Switzerland : 
Americans : Warning to evacuate, 542-543. 
Arbitration, Permanent Court, 398, 554. 
Bombings, 488. 
Death of Giuseppe Motta, 96. 
Treaties, agreements, etc. : 
Extradition: With U. S., 149. 
Intellectual cooperation : Ratification, 511. 
Trade agreement with U. S. : Proposed partial 
termination, 346-348. 
Syria and the Lebanon : Suspension of parcel-post 
service, 721. 

Tariff {.fee also Trade-agreements program) : Ad- 
dress by Mr. Deimel, 508-509; by Mr. Grady, 
206-207, 391-397. 
Taxation : 
Convention: U. S. and Sweden, 718-719. 
Exemption for liquid fuel and lubricants used in air 
traffic, convention, 273, 587. 



INDEX 



743 



Taylor, Frank J., President of American Merchant 
Marine Institute: Letter of Secretary Hull on 
travel between American republics, 28-29. 
Technical and administrative officials of U. S. : Loan 

of, to other American republics, 170-172. 
Telecomnnmicatiou conventions. See Treaties, agree- 
ments, etc. 
Telephone Consulting Committee, International: End 

of Danzig membership, 125. 
"Territorial Papers of the United States" : Volumes 

VII and VIII, 285. 
Territorial waters of U. S. : Control of vessels, procla- 
mation, 707-70S : use by belligerent submarines, 
proclamations, 43(M31, 490--i91, 641. 
Thailand : 
Minister to U. S. {Scni Pramoj) : Presentation of cre- 
dentials, 716. 
Treaties, agreements, etc. : 
Permanent Court of International Justice, op- 
tional clause of Statute : Renewal of accept- 
ance, 699. 
Telecommunication (1932) and Cairo revisions 
(1938) : Adherence, 481. 
Thomson, Charles A., Chief, Division of Cultural 

Relations of the Department : Appointment, 718. 
Tijuana, Mexico: American Consulate at, 668. 
Tin-plate scrap: Exportation, 12, 121, 189-190, 331, 421, 

552, 698. 
Tokugawa, Prince : Death, 627. 

Trade, international. Sec Cotmnerce, international ; 
Foreign trade. U. S. ; Trade-agreements program. 
Trade-agreements program (see also Commerce, inter- 
national; Foreign trade, U. S. ; Tariff; U. S. Con- 
gress; U. S. economic policy) : 
Addresses, etc., by Mr. Berle, 25(5-257; Mr. Davies, 
144-145; Mr. Edminster, 238-245, 574-581; Mr. 
Grady, 38-41, 6:^-76, 76-81, 97-101, 101-105, 105- 
109, 182-185, 206-207, 232-238, 265-266, 391-397 ; 
Secretary Hull, 29-38, 129, 225-232, 284, 364 ; Mr. 
Long, 176-1 SI; Dr. McClure, 207-214, 310-311; 
President Roosevelt, 390-391. 
Agreement with — 
Argentina : Termination of negotiations, 10, 42. 
Canada : Analysis of trade under, 43—18. 
Ecuador : Restriction of U. S. imports, 667-668. 
Switzerland : Proposed partial termination, 346-348. 
Uruguay: Termination of negotiations, 43. 
Agriculture: Benefits to, 34, 39-11, 7.3-74, 80-81. 
Constitutionality of the act, 67-68, 78-79, 181. 
Correspondence of Secretary Hull with President 

Green of American Federation of Labor, 42. 
Economic reconstruction under, 99-100, 101-105, 109, 

266, 461, 464, 631. 
General statement, 628-631. 
Labor: Benefits to, 74-75, 81. 

Most-favored-nation policy, 32-33, 71-72, 80, 185. 
210-211, 229-230. 



Trade-agreements program — Continued. 
Procedure under, 68-69. 
Purpose of, 628. 
Senate ratification of agreements (proposal) : W, 

100-101. 230-231. 
War, effect on, 630-631. 
'J'raffic in arms, tin-plate scrap, etc. See Arms and 

munitions. 
Transfer of title to merchandise for belligerents, 432, 

491-492, 643. 
Trans-Isthmian Highway: Creation of Joint Board, 

U. S. and Panama, 150. 
Trans-Jordan : Suspension of parcel-post service, 721. 
Travel America Year : Proclamation by President of 

U. S., 28. 
'J'ravel of Americans in combat areas (''ce also under 
Europe, U. S. ships), 56, 378-379, 431-432, 492, 560, 
610-611, 612. 641-643, 644-645, 646, 707. 
Travel between American republics: Letter of Secre- 
tary Hull to President Taylor of American 
Merchant Marine Institute, 28-29. 
Treaties, agreements, etc. (see also Inter -American 
relations ; Trade-agreements program ) : 
Address by Jlr. Whittington, 502-506. 
Asylum and political refugees (1939) : Adoption by 

Conference of Jurisconsults, 631. 
Aviation : 
Aerial navigation (convention of 1919 and protocols 
of 1922, 1923, and 1929) : Adherence by Para- 
guay, 161-162; list of ratifying and adhering 
countries, 162. 
Aircraft, a.ssistance and salvage at sea (1938) : 
Ratification by Italy, 273; approval by Mexico, 
512. 
Aircraft, damages to third parties (1933 and 

1938) : Ratification by Italy, 273. 
Aircraft, U. S. : Importation into New Zealand 

(1940), 424-425. 
Liquid fuel and lubricants (1939) : Ratification 

by Greece, 587 ; by Italy, 273. 
Missions, U. S. military, U. S. and — 
Argentina (1940), 719-720. 
Chile (1940), 453. 
Broadcasting, North American regional (1937) : Text 
of articles regarding ratification, effective date 
adherence, etc., 14-15; ratification by Mexico, 
14, 192, 368. 
Broadcasting (peace), 1936: Ratification by Chile; 

350-351. 

Children, employment at sea (revised 1936), ratifi- 
cation by Iraq, 191-192; in industry (1937) 
ratification by China, 366-367. 
Civil law, revision of 1940 : Signature by Argentina 
Bolivia, Colombia, Paraguay, Peru, and Uru 
guay, 631. 
Claims: U. S. and Norway (Hannevig and Jones. 
1940), 351. 



744 



DEPARTMENT OF STATE BXJLLETIN 



Treaties, afrrecruents, etc. — Continued. 
Commerce : 
Arbitration clauses (1923) : Partial withdrawal 
of reservation by Netherlands in respect of 
Curasao, Netherlands Indies, and Surinam, 
5S0. 
Commercial law, revision of 1940: Signature by 
ArRcntina, Bolivia, Brazil, Colombia, Para- 
guay, Peru, and Uruguay, 631. 
Commercial navigation, revision of 1940 : Signa- 
ture by Argentina, Bolivia, Brazil, Chile, 
Colombia, Paraguay, Peru, and Uruguay, 631. 
U. S. and— 
Chile (1938) : In force by Chile, 191. 
Iraq (1938) : Ratification by Iraq, 586; procla- 
mation by President of U. S., 610. 
Consular, U. S. and Lithuania (1940), 512. 
Copyright (1939) : Adoption by Conference of Juris- 
consults, 631. 
Cultural relations, inter-American (1936) : 

Exchange professors and students, 279-281, 357- 

361. 
Ratification by Mexico, 161 ; by Paraguay, 315. 
Currency and securities, foreign : Acquisition and 
disposition, U. S. and Canada (1940, text), 
699-701. 
Drugs, illicit traflSc (1936) : Ratification by Egypt, 

315; by France, 220. 
Educational films : 

Convention (1933j : Ratification by France, 555- 

556. 
Inter-American convention (1936) : Ratification 

by Chile, 219. 
Proces-verbal (1938) : Application to Burma and 
Southern Rhodesia, 555; Signature on behalf 
of Australia, including Nauru, New Guinea, 
Norfolk Island, and Papua, 125; by Great 
Britain, 272-273; by Iraq, 555. 
Extradition, U. S. and — 
Guatemala, supplementary (1940), 220. 
Monaco (1939): Exchange of ratifications, 332; 

proclamation by President of U. S., 350. 
Switzerland, supplementary (1940), 149. 
Great Lakes - St. Lawrence waterway, proposed 

treaty, U. S. and Canada, 14, 124-125. 
Great Lakes fisheries, Board of Inquiry, U. S. and 

Canada (1940, text), 273-275. 
Hague conventions: Violations by Great Britain, 

3, 306. 
Highway, Trans-Isthmian (1936) : Joint Board, U. S. 

and Panama (1940), 150. 
Indigenous workers : Draft conventions of Interna- 
tional Labor Conference (1939), 670. 
Intellectual cooperation. International act (1938) : 
Approval and ratification, 511, 670 ; textual cor- 
rection and entrance into force, 511. 



Treaties, agreements, etc. — Continued. 

Intellectual property (copyright), 1939: Adoption by 

Conference of Jurisconsults, 631. 
Inter-American Bank: 
Bylaws (text), 516-B22. 
Charter, proposed (text), 515-516. 
Convention : Adoption by the Inter-American Fi- 
nancial and Economic Advisory Conmiittee, 
522; letter of Secretary Hull regarding, 305- 
306; signatory states, 512, 587; text, 512-522. 
International law : 

Conventions and protocols (1930) adopted by the 
Conference for Codification of: Application to 
Burma, 615. 
Treaties and additional protocol (1940) adopted 
by Conference of Jurisconsults, 631. 
Labor: Conventions, recommendations, etc., of the 
International Conference on, 191-192, 275, 36(5- 
367, 425, 481-482, 632, 670-671, 701. 
League of Nations Covenant, amendment (1938) : 

Ratification by Lithuania, 366. 
Liberal professions (1939) : Adoption by Conference 

of Jurisconsults, 631. 
Liquid fuel and lubricants used in air traffic (1939) : 

Ratification by Greece, 587 ; by Italy, 273. 
Migrants, employment : Draft convention of Inter- 
national Labor Conference (1939), 670. 
Navigation (see also Commerce) : Maritime buoy- 
age (1936) : Adherence by Iran, 149. 
Night work in bakeries (1925) : Ratification by 

Sweden, 192. 
Peace : 

Advancement: U. S. and Union of South Africa 
(1940), amending treaty of 1914 with Great 
Britain, 365-366. 
Pacific settlement of disputes (1928) : 
Declarations : 

Australia — noted by Belgium, 423 ; by Den- 
mark, 332 : by Estonia, 271 ; by Nether- 
lands, 86-87 ; by Norway, 219 ; by Sweden, , 
191. 

Canada, 86 — noted by Belgium, 423; by Den- 
mark, 332 ; by Estonia, 271 ; by Haiti, 585 ! 
by Netherlands, 219, 271-272 ; by Norwayf 
451 ; by Sweden, 280. 
U. S. S. R. and Finland (1940, text), 453^56. 
Penal law, revision of 1940 : Signature by Argentina, ] 
Bolivia, Brazil, Colombia, Paraguay, Peru, and 
Uruguay, 631. 
Permanent Court of International Justice, optional 
clause of Statute : 
Acceptance : 
Renewal by Greece, 398; by Thailand, 699. 
Termination and new conditions of, by Great 
Britain, 423-424; India, 451-453; New Zea- 
land, 554-555; Union of South Africa, 614- 
615. 



N'DEX 



745 



reatles, agreements, etc. — Contiuued. 
Permanent Court of International Justice, etc. — Con. 
Declarations : 

Australia — noted by Belgium, 87 ; by Denmark, 
332; by Estonia, 272; by Netherlands, 87- 
88 ; by Norway, 190 ; by Peru, 350 ; by Swe- 
den, 190-191. 
Canada, 87 — noted by Belgium, 366; by Denmark, 
332 ; by Estonia, 272 ; by Haiti, 585-586 ; by 
Netherlands, 272; by Norway, 453; by 
Sweden, 286. 
France — noted by Belgium, 87 ; by Denmark, 332 ; 
by Estonia, 272; by Netherlands, 87-88; by 
Peru, 350; by Sweden, 190-191. 
Great Britain (text), 423 — noted by Belgium, 
87 ; by Netherlands, 87-88 ; by Norway, 190 ; 
by Peru, 3.50; by Sweden. 190-191. 
India (text), 451 — noted by Belgium, 87; by 
Denmark, 332; by Estonia, 272; by Nether- 
lands, 87-88 ; by Norway, 190 ; by Sweden, 
190-191. 
New Zealand — noted by Belgium, 87 ; by Den- 
mark. 332 ; by Estonia, 272 ; by Netherlands, 
87-88; by Norway, 190; by Peru, 350; by 
Sweden, 190-191. 
Union of South Africa — noted by Belgium, 87 ; 
by Denmark, 332 ; by Estonia, 272 ; by Nether- 
lands, 87-88 ; by Norway, 190 ; by Peru, 350 ; 
by Sweden, 190-191. 
Postal : 

Parcel-post agreements with U. S. (Aden, Albania, 
Anglo-Egyptian Sudan, Belgium, British 
Somaliland, Bulgaria, Cyprus, Czechoslovakia, 
Danzig, Denmark, Egypt, Estonia, Ethiopia, 
Finland, French Somaliland, Germany, 
Greece, Greenland, Hungary, Iran, Iraq, Italy 
and Italian colonies, Latvia, Lithuania, Lux- 
emburg, Malta, Netherlands, Norway, Pales- 
tine, Poland, Rumania, Saudi Arabia, Spitz- 
bergen, Sweden, Syria and the Lebanon, 
Trans-Jordan, Turkey, U. S. S. R., Vatican 
City State, and Yugo.slayia) : Suspension of 
service under, 720-721; U. S. ratification (Lith- 
uania), 88. 
Universal convention (1934) : Ratification by Ire- 
land, 220-221; by United States, 481. 
Univer.sal convention (1939) : 
Acceptance by Australia, including Nauru, New 

Guinea, Norfolk Island, and Papua, 399. 
Adherence on behalf of French Indochina, 315; 

by Italy and possessions, 315. 
Approval by Mexico, 525-526 ; by United 
States (convention, final protocol, regula- 
tions, and air-mail provisions), 149. 
Ratification by Greece, 220 ; by Philippines, 425. 



Treaties, agreements, etc. — Continued. 
Powers of attorney, protocol (1940) : 

Signature by Colombia, 632; El Salvador, 615; 
Nicaragua, 632; Panama, 424; Venezuela, 290. 
Text, 287-290. 
Prisoners of war (1929) : Arabic translation by 
Icaq transmitted to Secretary Hull, 272; 
French regulations under, 398. 
Processal law, revision of 1940: Signature by 
Argentina, Bolivia, Brazil, Colombia, Paraguay, 
Peru, and Uruguay, 631. 
Public Health Ofiice, International, arrangement 

(1907) : Adherence by Hungary, 15. 
Publications, obscene, suppression of circulation 
(1923) : Adherence by Morocco, 699; ratification 
by Prance, 290-291. 
Radio. See Telecommunications. 
Red Cross Convention (1929) : 

Application by Belgium, 125; by Canada, 511. 
Arabic translation by Iraq transmitted to Secre- 
tary Hull, 272. 
Refugees : 

German : Protocol to provisional arrangement 
(1936) and convention (1938) concerning 
status, signature by Great Britain, 126. 
Political, treaty adopted by Conference of Juris- 
consults, 631. 
Rights and duties of states, inter-American (1933) : 

Ratification by Venezuela, 219. 
Road transport : Draft convention of International 

Labor Conference (1939), 670. 
Sanitary convention of 1926, modification (1938) : 
Adherence by New Zealand, 50. 
Approval by Mexico, 511-512. 
Ratification by Afghanistan, 632; Australia, oO; 
Denmark, 50; Greece, 273; Sweden, 50. 
Seamen's articles of agreement (1926) : Ratifica- 
tion by Norway, 481-482. 
Slavery, international (1926) : Application to 

Burma, 556. 
Smuggling, inter-American, convention for repres- 
sion (1935) : Ratification by ChUe, 220. 
Taxation: U. S. and Sweden (1939), 718-719. 
Telecommunications : 
1932 convention : Adherence by Slovakia, 162 ; by 

Thailand, 481. 
1938 revisions of regulations and protocols (Cairo) : 
Acceptance by British colonies and territories 
under mandate, 480-481 ; India, 481 ; New 
Hebrides, 481. 
Adherence by Slovakia, 162; Thailand, 481. 
Approval by China, 162 ; Greece, 125 ; Iceland, 51 ; 

Norway, 221. 
Ratification by Dominican Republic, 367, 480. 
Broadcasting, North American regional (1937) : 



746 



DEPARTMENT OF STATE BULLETIN 



Treaties, agrpements, etc. — Continued. 
Telecommiiiiications — Continued. 

Text of articles regarding ratification, effective 
dato. adlierence, etc., 14-15; ratification by 
Mexico, 14, 192, 368. 
Broadcasting (peace), 1936: Ratification by Chile, 

350-351. 
Radiocommiuiication, inter-American convention 
and arrangement (1937) : Ratification by 
Brazil, 201, 367-36S. 
Visa fees, waiver, U. S. and Belgium (1927) : Termi- 
nation, 332. 
Wage.s and hours of work in industries and agricul- 
ture, statistics (1938) : Ratification by Nether- 
lands, 425 ; New Zealand, 275 ; Norway, 481-482. 
Whaling, convention (1032), agreement (1937), and 

protocol (1938) : U. S. regxilations, 350. 
White lead in painting (1921) : Ratification by Neth- 
erlands, 192. 
Workmen's compensation (1925) : Adherence by 
Iraq, 632; ratification by Iraq, 701. 
Turkey : 

Earthquake in Anatolia, 10. 
Parcel-post service: Suspension, 721. 
Tweedsmuir, Loi-d, Governor General of Canada: 
Death, 175. 

Under Secretary of State, U. S. See Welles, Sumner. 
Union of the American Republics. See Pan American 

Union. 
Union of the Caribbean, Inter-American, 569-570. 
Union of South Africa : 

Advancement of peace : Treaty with U. S., 365-366. 
Intellectual cooperation, international act: Ratifica- 
tion, 670. 
Permanent Court of International Justice, optional 
clause of Statute, termination and new condi- 
tions of acceptance, 614-615. 
Union of Soviet Socialist Republics : 
Americans : Evacuation, 95-96. 
Parcel-post service : Suspension, 721. 
Petroleum products from U. S., 195. 
Relations with — 

Finland : Statement of President Roosevelt, 295. 
United States, 153-155. 
Treaty of peace with Finland, 453-456. 
United States (see aUo American citizens, etc.; Legis- 
lation: 
Congress : 
House of Representatives: 

European possessions in Western Hemisphere : Let- 
ter from Secretary Hull to Mr. Bloom, 619-620. 
Export of petroleiun products to U. S. S. R. : 
Letter of Secretary Hull to Mr. Hook, 195. 
German White Book: Letter of Secretary Hull 
to Mr. Fish, 362. 



United States — Continued. 
Congress — Continued. 

European possessions, etc. — Continued. 

Trade-agreements program : Statements in Com- 
mittee hearings by Mr. Grady, 63-76; by 
Secretary Hull, 29-38. 
Messages from the President — 
Aid to Finland, 55. 

Draft conventions and recommendations of In- 
ternational Labor Conference, 670-671. 
National defense, 529-532. 

Reorganization Plan : No. IV, excerpt, 397 ; 
No. V, excerpt, 610. 
Senate : 
Trade-agreements piogram : 
Approval by Finance Committee, 284. 
Passage : Statement of Secretary Hull, 364. 
Proposal for ratification of agreements, 69, 

100-101, 230-231. 
Statements in Committee hearings by Mr. 
Grady, 232-238; by Secretary Hull, 225- 
232. 
Treaties, agreements, etc., with — 

Argentina: U. S. military aviation instructors. 

detail, 719-720 
Belgium : Visa fees, waiver of, termination, 332. 
Canada : 
Foreign currency and securities : Acquisition 

and disposition, 699-701. 
Great Lakes - St. Lawrence waterway, proposed 

treaty, 14, 124-125. 
Great Lakes fisheries : Joint Board of Inquiry, 
establishment, 27,3-274. 
Chile : U. S. military aviation mission, detail, 453. 
Guatemala : Supplementary extradition, 220. 
Lithuania : Consular, 512. 
Monaco : Extradition, 332, 350. 
New Zealand : U. S. aircraft, importation into, 

424-425. 
Norway: Claims (Hannevig and Jones), 351. 
Other American republics: Inter-American Bank, 

establishment, 512-525. 
Panama : Trans-Isthmian Highway Joint Board, 

establishment, 150. 
Sweden : Double income taxation, 718-719. 
Switzerland : 
Supplementary extradition, 149. 
Trade agreement, proposed partial termination, 
346-348. 
Union of South Africa : Advancement of peace, 
amendatory, 365-366. 
Whaling regulations under international agreements, 
350. 
Universal postal conventions. See Treaties: Postal. 
Uruguay : 
American protest against violation of neutrality in 
Europe, 541-542, 568. 



INDEX 



747 



Uruguay — Contiuued. 
Treaties, agreements, etc. : 

International law (civil, commercial, penal, and 
processal) and commercial navigation, treaties 
and additional protocol adopted by Confer- 
ence of Jurisconsults (1940) : Signature, 631. 
Trade agreement veith U. S. : Termination of ne- 
gotiations, 43. 

Vargas, Getulio, President of Brazil : Speech addressed 

to Brazilians, 666. 
Vatican City State: 
Parcel-post service : Suspension, 721. 
Personal representative of President Roosevelt, 130- 
132. 
Venezuela : 

Professors and students : Exchange with U. S., 357- 

361. 
Treaties, agreements, etc. : 

Powers of attorney, protocol : Signature, 290. 
Eights and duties of states, inter-American : Rati- 
fication, 219. 
Vipond, B. Leslie, Assistant Chief, Office of Fiscal 
and Budget Affairs of the Department: Appoint- 
ment, 1S6. 
Virginia, University of: Addresses before, by Mr. 
Berle, 076-679; by President Roosevelt, 635-63S. 
Visas, U. S. immigration : 
Fees, waiver of : Termination of agreement with 

Belgium, 332. 
Regulations, 620-621, 622-624, 666-667. 
Statistics, 214-217. 
Vocational training : Recommendation of International 
Labor Conference, 670. 

Wages and hours of work in industries and agricul- 
ture, convention : Ratification by Netherlands, 425 ; 
New Zealand, 275 ; Norway, 481-482. 

"Wakama" : Sinking of, 306. 

Warren, Fletcher, Executive Assistant to Assistant 
Secretary of State: Designation, 186. 



Warsaw : Evacuation of members of American Con- 
sulate General, 319. 
"Washington", 610-611, 624, 645-646; 706-707. 
Welles, Sumner : 
Addresses, etc. : 
Columbus Arms Mural in Library of Congress : 

Dedication, 596-597. 
Eighth American Scientific Congress, 53&-541. 
European visit, 319, 362. 
Memorandum to French Minister of Finance on U. S. 

economic foreign policy, 461. 
Visit to Europe, 155, 172, 319, 335, 302. 
Western Hemisphere : 

European possessions in : 

Proposed joint resolution, 619-620. 
U. S. note to Germany and Italy, 681-682. 
Export surpluses in, U. S. plan for disposal: 
Address by Mr. Berle, 67G-679. 
Statement by President Roosevelt, 675-676. 
White House statement, 675. 
Whaling regulations of U.S. under international .igree- 

ments, 350. 
White Book, German, 335-336, 362. 
White lead in painting, convention : Ratification by 

Netherlands, 192. 
Whittington, William V., Treaty Division of the De- 
partment : Address on treaties, 502-506. 
Wisconsin, University of: Address by Mr. Davies at 

law-library dedication, 499-502. 
Workmen's compensation, convention : Adherence by 

Iraq, 632 ; ratification by Iraq, 701. 
Wounded: Red Cross Convention (1929), 125, 272, 
511. 

Yale Political Union: Address before, by Mr. Berle, 

139-142. 
Young, Fred R., Assistant Chief, Division of Accounts 

of the Department : Appointment, 363. 
Yugoslavia : 

Debt to U. S., 651. 

Parcel-post service : Suspension, 721. 

Permanent Court of Arbitration: Appointment to, 



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PUBLISHED WITH THE APPROVAL OF THE DIBECTOB OF THE BCTBEATT OF THE BUDQBT 



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Treaty Information: 

Navigation: Page 

Great Lakes-St. Lawrence Waterway Project ... 14 

Telecommunications: 

North American Regional Broadcasting Agreement . 14 

Health: 

Arrangement for the Establishment of the Interna- 
tional Office of Public Health (Treaty Series No. 
511) 15 



PROTEST TO GREAT BRITAIN ON TREATMENT OF UNITED STATES 

MAILS 



[Released to the press January 2] 

Upon instructions of the Secretary of State, 
the American Embassy at London has delivered 
to the British Foreign Office a note reading 
textually as follows: 

"The United States Department of State has 
been advised that British authorities have re- 
moved from British ships and from American 
and other neutral ships American mails ad- 
dressed to neutral countries and have opened 
and censored sealed letter mail sent from this 
country. 

"The following cases among others have come 
to the Department of State's attention : On Oc- 
tober 10 the British authorities took from the 
steamship Black Gridl 293 sacks of American 
mail addressed to Rotterdam and ten sacks ad- 
dressed to Antwerp. On October 12 author- 
ities in the Downs removed from the Zaandam 
77 sacks of parcel post, 33 sacks of registered 
mail, and 156 sacks of ordinary mail addressed 
to the Netherlands, as well as 65 sacks of ordi- 
nary mail addressed to Belgium, four to Lux- 
emburg, three to Danzig and 25i) to Germany. 
On October 12 authorities at Weymouth re- 
moved from the Black Tei^n 94 sacks of Amer- 
ican mail addressed to Rotterdam, 81 to Ant- 
werp and 184 to Germany. On October 24 
authorities at Kirkwall removed from the 
Astrid-T harden 468 bags mail from New York 
to Gothenburg and 18 bags from New York to 
Helsinki. Many individual instances of Brit- 
ish censorship of American mails have come 
to the Department's attention. 

202162 — 40 



"This Government readily admits the right of 
the British Government to censor private mails 
originating in or destined to the United King- 
dom or private mails which normally pass 
through the United Kingdom for transmission 
to their final destination. It cannot admit the 
right of the British authorities to interfere with 
American mails on American or other neutral 
ships on the high seas nor can it admit the 
right of the British Government to censor mail 
on ships which have involuntarily entered Brit- 
ish ports. 

"The eleventh Hague Convention recognizes 
that postal correspondence of neutrals or bel- 
ligerents is inviolable on the high seas. The 
United States Government believes also that 
the same rule obtains regarding such corre- 
spondence on ships which have been required 
by British authorities to put into a British 
port. This view is substantiated by Article 1 
of the Convention which stipulates : 'If the ship 
is detained, the correspondence is forwarded by 
the captor with the least possible delay.' The 
United States Government regards as particu- 
larly objectionable the practice of taking mails 
from vessels which ply directly between Amer- 
ican and neutral European ports and which 
through some form of duress are induced to 
call at designated British control bases. This 
is beheved to be a clear violation of the im- 
munity provided by the Hague Convention. 

"The United States Government feels com- 
pelled to make a vigorous protest against the 
practices outlined above and to express the hope 
that it will receive early assurances that they 
are being discontinued." 

3 



DEPAKTMENT OF STATE BXJliLETIN 

BRITISH SEARCH OF UNITED STATES SHIPS 



(Released to the press January 5] 

Following is the text of a note from the Hon- 
orable Cordell Hull, Secretary of State, to His 
Excellency, the Marquess of Lothian, the Brit- 
ish Ambassador, December 14, 1939 : 

"Excellency : 

"I have the honor to acknowledge the receipt 
of Your Excellency's note, no. 471, of Novem- 
ber 9, 1939, in regard to certain provisions of 
the Neutrality Act of 1939 and to the President's 
Proclamation of November 4, issued pursuant 
to the terms of Section 3 of that act, in which 
you inform me that your Government feels 
obliged formally to reserve its rights in the mat- 
ter of the exercise of belligerent activities in 
respect to United States vessels in the manner 
indicated in your note of September 10, 1939. 

"It was suggested in that note that neutral 
vessels en route to certain countries should vol- 
untarily call at one of the several 'contraband 
control' bases designated by your Government 
in order that the examination of their cai'goes 
might be facilitated, by examination in port 
rather than on the high seas. Since, pursuant 
to the Act of Congress approved November 4, 
1939, and the President's Proclamation of the 
same date, it becomes illegal for American ves- 
sels to enter the so-called combat zone about the 
British Isles and the Northern coast of Europe, 
they are thereby precluded from voluntarily en- 
tering the 'contraband control' bases within the 
combat zone, and Your Excellency's note is un- 
derstood as undertaking to reserve a right of 
your Government to divert American vessels 
to such bases, by force if necessary, acting, in 
that respect, without regard to the municipal 
law of the United States or the rights, obliga- 
tions, and liabilities of American vessels under 
that law. 

"In this connection I am impelled to bring to 
the attention of Your Excellency's Government 
the following considerations which I conceive to 
be of such importance as to merit most careful 
notice. 



'•^First. Since, under the Neutrality Act, it is 
illegal for American vessels to carry cargo to 
belligerent ports in Europe and Northern Af- 
rica, such vessels will, of necessity, be carrying 
only such cargo as is shipped from one neutral 
country to another. Such cargo is entitled to 
the presumption of innocent character, in the 
absence of substantial evidence justifying a 
suspicion to the contrary. 

'■'■Second. It is my understanding that the 
American steamship companies operating ves- 
sels to European destinations, putting aside 
certain of their rights under accepted principles 
of international law, have voluntarily indicated 
a willingness to cooperate with the British au- 
thorities in every practicable manner intended 
best to serve the mutual interests of themselves 
and the British Government in those circum- 
stances in which the respective rights of the 
two parties might be regarded by them as in 
some respects in conflict. It is my belief that 
such a spirit of liberality on the part of Ameri- 
can shipping interests should be met by a cor- 
responding degree of accommodation and flexi- 
bility on the part of the British Government, 
and that such mutual deferences should avoid 
giving rise to any occasion for the forcible di- 
version of such American vessels to those bel- 
ligerent ports which they are by the law of 
the United States prohibited from entering. 

"In view of these considerations, it is difficult 
for my Government to foresee, as a practical 
matter, any occasion necessitating the entry of 
American vessels into belligerent ports. If, 
despite these considerations the British authori- 
ties should feel it necessary to compel any 
American vessel to enter the combat area or any 
of those belligerent ports which by the provi- 
sions of the neutrality law they are prohibited 
from entering, the Government of the United 
States will feel it necessary to examine carefully 
into all of the facts of the case and to take 
such further action as the results of such ex- 
amination appear to make necessary or expedi- 



JANUAKY 6, 1940 

ent. Meanwhile, I feel that I should inform 
Your Excellency that this Government, for 
itself and its nationals, reserves all its and their 
rights in the matter and that it will be expected 
that compensation for losses and injuries re- 
sulting from the infraction of such rights will 
be made as a matter of course. 
"Accept [etc.] Cordell Huix" 



BRITISH BLOCKADE OF GERMAN 
EXPORTS 

[Released to the press January 4] 

The following is a list of questions which 
were submitted by the American Embassy at 
London to the British Ministry of Economic 
Warfare concerning the matter of interference 
by British authorities with shipments of com- 
modities purchased in Germany. The follow- 
ing answers to each of these specific questions 
are in the form stated by the Ministry of Eco- 
nomic Warfare in an official communication to 
the American Embassy dated December 25, 
1939: 

Q. First. What measures are in effect or in 
contemplation in the direction of assurances, be- 
fore shipment from German and neutral ports, 
of noninterference with such consignments? 

A. Applications for exemption from the pro- 
visions of the order in council in certain cir- 
cumstances will be entertained and if granted 
an assurance will be given that the consign- 
ment concerned will not be interfered with. 

Q. Second. Under what circumstances and on 
the basis of what evidence will such assurances 
be given ? 

A. Such exemptions will only be given in vei-y 
exceptional circumstances. It is not possible 
to define the facts on which an exception may 
be made because, as you will appreciate, this 
will depend on the particular circumstances of 
each case. Wlien, however, any application for 
exemption is made the fullest possible informa- 
tion should be supplied, including in particular 



all details of the shipment desired, together 
with the names and addresses of consignor and 
consignee, the origin of the goods, the contract 
under which they were purchased, dates on 
which payment therefor is due, and the dates on 
which any payments therefor have been made. 

Q. Third. To whom should such evidence be 
presented, and, generally speaking, what peri- 
ods of time are likely to follow presentation of 
such evidence before decisions will be rendered 
respecting individual shipments? 

A. All such applications should be addressed 
to the Ministry of Economic Warfare with any 
further documentary evidence that is avail- 
able. It is not necessary to state how long a 
period of time is likely to elapse before deci- 
sions will be made in regard to individual ship- 
ments, but every effort will be made in this 
Department to minimize delay. 

Q. Fourth. Wliat is the nature of and what 
value will be given to such advance assurances? 

A. The nature of any assurance given, in cases 
where an exemption is granted, will be a com- 
munication to that effect made to the applicant. 
In such cases the necessary instructions will be 
given to all the naval and customs authorities 
concerned. 

The above is released merely for the informa- 
tion of the public. The LTnited States has pro- 
tested the legality of the British order in 
council of November 28, 1939, by a note dated 
December 8, 1939, delivered by the American 
Embassy in London to the British Foreign 
Office and made public on December 8, 1939. 



GREAT LAKES-ST. LAWRENCE 
WATERWAY PROJECT 

An announcement to the press regarding the 
proposed general treaty with Canada dealing 
with the utilization of the Great Lakes-St. 
Lawrence Basin appears in this Bulletin under 
the heading "Treaty Information." 



The American Republics 



THE 1930'S— A DECADE OF PROGRESS EN INTER- 
AMERICAN RELATIONS 

Address by Ellis 0. Briggs ^ 



[Released to the press January 4] 

An examination of inter-American relations 
in 1939 is of interest chiefly in the light it 
casts toward the future. As members of the 
Advertising Club and as business executives, it 
may be that you have already speculated on 
the influence of the dry pages of yesterday's 
events on the customs and habits of tomorrow, 
knowing that these will govern the acceptance 
or rejection of tomorrow's products and stand- 
ards. In international affairs, likewise, such 
speculation is more than the satisfaction of 
curiosity, since a correct interpretation of recent 
history is essential to an understanding of today 
and tomorrow. Nor is it easy, for the tempo of 
a generation ago has been accelerated, and the 
river of history now moves at freshet speed, 
wherem events, like leaves in the flood, swirl 
below the surface almost before they can be 
identified. The banks of such a stream do not 
always provide sure footing for an historian. 

Although the students of 1950 will benefit 
from a perspective now lacking, we are war- 
ranted in drawing certain general conclusions, 
based not alone on 1939 but on the decade just 
ended. The 1930's witnessed a very notable de- 
velopment — and a vei-y notable improvement — 
in the relations of the 21 American republics 
among themselves. The 1930's witnessed the 
solution of a number of difiicult specific prob- 
lems and the development of others, solution 
of which has yet to be found. But of greater 
moment than these concrete credits and debits, 
the 1930's witnessed the beginning of an era of 
good feeling among the American peoples — an 
era in which we are today and whose duration. 



' Delivered before the Advertising Club of New Tork 
City, .lanuai-y 4, 1940. Mr. Briggs is Acting Chief of 
the Division of the American Republics, Department of 
State. 



we profoundly hope, extends far beyond the 
present horizon. In these difficult times, in 
which so much that we cherish is either jeopard- 
ized or impaired, it is encouraging to consider 
how substantial have become the foimdations 
of that era. We have quarried for those founda- 
tions in the political field, in the economic field, 
and in the field of human relations. 

In the political field the decade saw in the 
New World the acceptance of the doctrine of 
nonintervention : a renunciation, if you will, of 
an occasionally asserted right the allegation 
of which — not only by our Government but 
also from time to time by other countries of 
the hemisphere — had been largely responsible 
for deferring the establisliment of a genuine 
solidarity of outlook and purpose among the 
American republics. Wholehearted acceptance 
of this principle by the United States was in- 
herent in the announcement and definition of 
the "good neighbor" policy in 1933. It was 
ratified by all of the American republics before 
the end of that year through the adoption at the 
Montevideo Conference of a convention pro- 
viding that no state has the right to intervene 
in the affairs of any other state. And the sin- 
cerity of our own ratification of this doctrine 
of juridical equality was demonstrated through 
our abrogation in 1934 of the Piatt Amend- 
ment, under which for a generation we had 
maintained the right to intervene in the affairs 
of Cuba. 

War visited the American republics in the 
last decade, and six nations cooperated in the 
negotiation of a peace which delimited bounda- 
ries in the Chaco — boundaries in dispute for 
over a century but now accepted by Bolivia and 
Paraguay in satisfaction and in good faith. 
The achievement of that peace represented a 
practical example of conciliation and disinter- 



JANUARY 6, 1940 



ested cooperation of which the New World is 
justly proud. It is an achievement which en- 
courages us to believe that the remaining 
boundary problems, legacies of the inadequate 
geography of the colonial period now fortu- 
nately few in number, are susceptible of early 
and peaceful adjustment. 

The threat of war, elsewhere in the world, 
was of increasing preoccuiDation to this hemi- 
sphere as the decade advanced. In surveying 
the achievements of the American republics 
against the disquieting back drop of the pres- 
ent conflagration, I believe we are entitled to 
recognize with satisfaction that as early as 1936 
the will to peace of the American republics 
devised practical machinery to make that will 
effective. The establishment at Buenos Aires 
of a procedure of consultation whereby, within 
3 weeks of the outbreak of hostilities last Sep- 
tember, the representatives of 21 nations were 
able to meet in Panama and there within a few 
days unanimously to determine upon measures 
to safeguard themselves, is one of the outstand- 
ing achievements — not of the last decade — but 
of the long development of inter-American 
relations. 

Before undertaking to comment on the Dec- 
laration of Panama, which advanced last Oc- 
tober the proposition that the neutral American 
republics are entitled as a measure of continen- 
tal self -protection to have those waters adja- 
cent to the American Continent, which we re- 
gard as of primary concern and direct utility in 
our relations, fi'ee from the commission of hos- 
tile acts by the belligerents, I should like to ask 
that you imagine that the recent naval engage- 
ment off the coast of Uruguay had instead taken 
place off the southern shore of Long Island. 
Let us suppose that the merchant vessel over- 
hauled by the battleship Graf Spee had been en 
route from Boston to New York, instead of from 
Brazil to the River Plate, and let us suppose 
that the running battle that followed took place 
from Montauk Point to Sandy Hook, with gun- 
fire audible throughout the day to all the inter- 
vening towns on Long Island. Let us suppose 
further that after a brief period of refuge in 
New York harbor, the Graf Spee was then 



blown up near Staten Island, with an explosion 
that rattled the windows in lower Manhattan. 

The picture is not overdi'awn; I merely re- 
count, in terms of local geography, what oc- 
curred off Uruguay between the thirteenth and 
seventeenth of last month. Should we then 
have regarded that picture with complacency? 

The Declaration of Panama sets forth that 
the family of American nations, neutrals in the 
present conflict, separated from the belligerent 
coiuitries by thousands of miles and a broad 
ocean, are entitled — and by right of self-pro- 
tection entitled — not to have the war brought 
to the neighborhood of the New World. 

The Declaration must be viewed in terms of 
an evaluation of the collective rights of the 
neutral nations of an entire hemisphere, when 
confronted with a conflict absorbing the ener- 
gies of three of the principal nations of another 
continent. The indiscriminate laying of mines 
in the North Sea, the seizure of exports con- 
signed by one of the belligerents to neutrals, 
and interference with the mails are recent ex- 
amples of the degree to which an individual 
nonbelligerent may rely on what international 
conventions tell him about his neutral rights 
in time of war. One of the most important 
factors leading to the increase in the number 
of participants in the war 25 years ago was the 
throttling of neutral trade, accompanied by a 
progressive trampling by belligerents upon 
neutral rights. 

The criticism has been made that the Declara- 
tion will not be enforced, the inference appar- 
ently being that force may be required, and that 
unless force is brought to bear the doctrine is 
merely a limp scarecrow, to be knocked flat by 
the first gust of wind, and then to be forgotten. 

That is a short view and one which overlooks 
both the vitality of the present inter-American 
relationship and the direction of the growth of 
that relationship. Such evolution is neces- 
sarily gi'adual, as an examination of the de- 
velopment of the concept of continental solidar- 
ity will disclose, but it is nonetheless increas- 
ingly powerful and effective. Consider by way 
of illustration the contrast between the diver- 
gent views of the American neutrals that ex- 



8 



DEPARTMENT OF STATE BULLETIN 



isted 25 years ago and the views prevailing 
among the American republics today. The test 
of time, measured in longer units than weeks, 
is necessary to gauge the effectiveness of the 
doctrine expressed in the Panama Declaration. 
Let it be remembered that our relationship is 
not a static association and that the machinery 
of consultation is in more useful operation to- 
day than ever before, that through daily ex- 
changes of views the governments concerned are 
trying to determine at each stage the most prac- 
tical steps to take in furtherance of their com- 
mon aims. And let it be written as significant 
that the Declaration interprets the will of the 
people of 21 neutral countries to preserve this 
continent — our continent and theirs — for peace. 

In the economic field the decade of the 1930's 
represented a period of trade and financial dis- 
location and of efforts to adjust the life of the 
Americas to social as well as to economic change. 
The achievements in the economic field were not 
so striking nor so readily defined as those that 
took place in the field of inter-American politi- 
cal relations. It was perhaps a period of devel- 
opment and of progress toward achievement, 
rather than of achievement itself. 

An important exception was in the realm of 
transportation, since the decade saw not only a 
great improvement in steamship services among 
the Americas but saw also the coming of age 
of international aviation. For people in the 
United States, with the easy accessibility of 
every part of the country through our network 
of railroads and highways, the airplane was a 
logical and natural development. It is not 
easy for us to visualize the transformation 
wrought by aviation in the lives of countries 
that still await land-travel facilities comparable 
to our own. During a century and a half, ours 
was a gradual transition — from pony express, 
to stagecoach, to railroad, to automobile — and 
then to the airplane. But for many of the 
areas to the south the change was from mule- 
back to the airplane— not in a century but in a 
single decade. There are towns in South Amer- 
ica today, hundreds of miles from the nearest 



railroad and without a single automobile, towns 
whose roofs and plazas echo daily with the 
hum of the airplane engine. 

The problems resulting from tariff national- 
ism have been recognized, and there has been a 
general realization of the direction in which we 
must move to find relief. Substantial progress 
has been made toward opening the channels of 
trade, at the same time that the mechanics of 
international trade have not grown simpler but 
have become — with quotas, controlled exchange 
rates, and blocked balances — more complex. 

The problem of external debts, which the 
1930's inherited from the preceding decade, has 
attained only partial solution. Until that situ- 
ation is finally settled, on terms satisfactory 
alike to debtor and creditor, it constitutes an 
obstacle to development. 

There is the problem of direct investments 
abroad and their relationship to governments 
and to the structure of society in the other 
American republics. No one will successfully 
deny the importance of the contribution of 
many of these enterprises toward material well- 
being and in promoting the development of 
natural resources. Today a number of our 
sister republics are in urgent need of additional 
capital, the reluctance of which to move 
abroad — although understandable in terms of 
certain recent experiences — is nevertheless caus- 
ing a deferment of the satisfaction of their 
legitimate needs. And yet, until mutually equi- 
table ways have been found for integrating 
some of these entei-prises within the local eco- 
nomic patterns, and for adjusting them to the 
changed and changing requirements of society, 
it seems possible that private capital may con- 
tiiaue to remain aloof, like Achilles in his tent, 
potentially strong but currently unadventurous. 

When one remembers the commercial disloca- 
tion caused by the outbreak of European hos- 
tilities in 1914, it is heartening to realize how 
much less serious was the immediate impact of 
war a quarter of a century later. This was so, 
not because the economic armor of the individ- 
ual American republics had become in the inter- 



JANUAEY 6, 1940 



9 



val less vulnerable, but because whereas in 1914 
each of the 21 nations stood alone, in 1939 they 
stood together. 

After 4 months of warfare in Europe it is of 
course not yet clear what the ultimate economic 
effects of the conflict on the American republics 
will be. The initial effect of the removal of 
Central Europe as a source of supply and of 
uncertain shipping facilities from Western 
Europe was a considerable shifting of urgent 
orders to the United States and a postpone- 
ment of other orders pending a clarification of 
the outlook. At the present time each country 
presents a separate picture depending on the 
types of products which it offers for export and 
on its former reliance on Central European 
markets. Since it appears that the western bel- 
ligerents are unlikely to facilitate the transfer 
to dollars of the proceeds of exports to them 
from the other American republics, we may 
expect to maintain and to increase United States 
exports to the other American republics only if 
we ourselves are able to make dollar exchange 
available, by imports from them, by tourist 
travel, or otherwise. 

At the Panama meeting, to which I have al- 
ready referred, the American republics created 
a Financial and Economic Advisory Committee 
composed of one representative from each coun- 
try. The Committee began its work on No- 
vember 15 and will remain in continuous session. 
Its general purpose is to further the develop- 
ment of healthy economic life in the Americas, 
and although it would be premature to predict 
what types of joint action the Committee may 
fi'om time to time recommend, much useful pre- 
liminary work has already been accomplished. 
In considering the direction of future economic 
collaboration, it should be noted that the process 
of consultation now invoked has not been lim- 
ited to mitigating the effects of the war. The 
cooperative actions born of the emergency are 
in addition including the study of long-range 
economic problems, quite aside from those re- 
sulting from hostilities. There is a new em- 
phasis upon the necessity of the prosperous 
development of our neighbors to the south if 



healthy inter-American trade relations are to 
obtain. Not only must the channels of trade 
be kept open, but merchandise must flow in 
each direction. 

Finally, there is the field of human relation- 
ships, a less tangible area than those of inter- 
national policy and economics, but perhaps the 
most important field of all. It may seem 
strange in future years that this was the last 
to engage our attention and that in the New 
World an awareness of each other — not as gov- 
ernments, but as individual people — developed 
so slowly. 

The cordiality of governments is important 
and desirable. But no matter how genuine that 
cordiality may be, and no matter how warm 
may appear from official messages to be the 
esteem of a government leader in one country 
for the chief of state of another, that cordiality 
is a superficial and transient phenomenon un- 
less it is founded on the understanding of peo- 
ples and on their genuine liking and respect 
for each other. In a world in which govern- 
ments exist to serve and not to dominate or to 
impose — in a world in which the dignity of the 
individual is maintained — in short, in our 
American world — it is the human relationship 
that constitutes the first and the essential in- 
gi'edient in international friendship. 

It is especially encouraging therefore to re- 
cord that the decade of the 1930's saw such sub- 
stantial progress in the field of human relations. 
Today, there has already developed in the Amer- 
ican republics a sound reciprocal appreciation 
of literature, music and painting, of our indig- 
enous art, and of the opulent treasures of our 
joint colonial heritage. Today, more young men 
and women than ever before are studying the 
languages spoken by our neighbors to the south ; 
similarly, more students and teachers from Mex- 
ico, Middle and South America, and the Carib- 
bean are coming north to visit our people and 
to learn our way of life. These are develop- 
ments of the utmost importance to all the 
Americas. 

In one respect, however, this interchange has 
not yet fulfilled its possibilities. People know 



10 



DEPARTMENT OF STATE BULLETIN 



each other not by reading, motion pictures, or 
radio — which are after all merely valuable ad- 
juncts to understanding — but by meeting one 
another and by establishing personal associa- 
tions, as individuals. And thus far, relatively 
few citizens of the United States have visited 
the southlands. The present would seem to be 
a particularly propitious time for us to enjoy 
their friendly hospitality. Transportation fa- 
cilities are available. The sea lanes of the New 
World are open, and we have expressed our 
determination to maintain them. Superior ac- 
commodations by air and land and water are at 
our disposal. Passport requirements have not, 
as they have for travel to various other parts 
of the world, been rendered more complicated 
or difficult. "^^Tiy then do we hesitate? Is it 
merely that we have failed to take into account 
that in the last 4 months not a single American 
citizen traveling between ports of the American 
republics, on vessels of any of their flags, has 
been subject to delay or inconvenience because 
of conditions relating to the conflict in Europe? 

The role of governments in promoting 
friendly individual relations among people is 
necessarily limited. We have no "official cul- 
ture" to sell to any of our neighbors. The idea, 
in fact, of an official culture is repugnant to us, 
and it would be equally repugnant to them. In 
the field of human association the role of a 
government is to encourage, to cooperate, and 
to coordinate private initiative and the initia- 
tive of institutions seeking to broaden the base 
of cultural appreciation. These it seems to me 
are useful and legitimate fvmctions of govern- 
ments truly representative of the peoples who 
compose them. 

In the three areas of political relations, of 
economic relations, and of human relations the 
decade of the 1930's witnessed important ad- 
vances. The background of peace, trade, and 
cultural interchange has given to us, individuals 
in the great family of 250,000,000 citizens of the 
American republics, a larger stake than ever 
before in the maintenance in the years to come 
of this, our inter- American era of good feeling. 



HAITI: ANNIVERSARY OF 
INDEPENDENCE 

[Released to the press January 2] , 

Following is the text of a message from the 
President to the President of Haiti (Stenio 
Vincent) : 

"January 1, 1940. 

"Upon this anniversary of the independence 
of Haiti it is with pleasure that I extend to 
Your Excellency my most sincere felicitations 
and earnest good wishes for the happiness of 
the Haitian people. 

Franklin D. Roosevelt"' 



The Near East 



EARTHQUAKE IN TURKEY 

[Heleased to the press January 5] 

Following is a translation of a message re- 
ceived from the President of the Turkish Re- 
public in response to the message sent by Presi- 
dent Roosevelt on December 28, 1939 : - 

"Ank.\ra, December 30, 1939. 
"Deeply affected by the sentiments which 
Your Excellency was so kind as to express in 
your name and in the name of the Federal Gov- 
ernment on the occasion of the earthquake 
which threw eastern Anatolia into mourning, I 
address to you my most sincere thanks. 

IsMET Ingnu" 



Commercial Policy 



TRADE-AGREEMENT NEGOTIATIONS 
WITH ARGENTINA 

[Released to the press January 5] 

The reciprocal-trade-agreement negotiations 
between the United States and Argentina have 
broken down. An official statement will be is- 
sued by the two Governments early next week. 



= See the Bulletin of December 30, 1939 (Vol. I, No. 
27), p. 741. 



OUTLOOK FOR THE COMING YEAR 

Statement by the Secretary of State 



[Released to the press January 1] 

In response to numerous requests for an in- 
dication of liis views as to the outlook for the 
coming year, the Secretary of State issued the 
following statement: 

"It would be a rash man, indeed, who would 
undertake to forecast the course of interna- 
tional developments during the coming year. 
In the tangled skein of events in which the 
world is now enmeshed, clarity of thought and 
of vision is possible only to the extent that one 
clings tenaciously to basic ideas, which must 
remain true however they may be beclouded by 
the day-to-day situation. 

"I do not know what the coming year will 
bring, but I am sure that there are in the world 
few men and women in whose hearts and minds 
there is not today a mingling of fear and ap- 
prehension and of hope. 

"The fear and apprehension derive from the 
possibility that the black shadow of violent 
warfare, under which the world enters upon 
the year 1940, may grow blacker j'et in the 
months to come. In the recent past, mankind 
has had a preview of the haunting picture of 
horror that is modern war. Along himdreds of 
miles of frontiers there now stand embattled, 
forces that may be unleashed at any moment 
and make a shambles of great civilized areas. 

"The hope springs from the profoimd con- 
viction, which is common to millions of men 
and women everywhere, that there is no inevi- 
tability about war. There is a way of peace for 
all nations, if they choose the way of peace 
rather than the way of war. But all nations 
must choose the way of peace. If any of the 
world's powerful nations decides to enter upon 
the road of armed conquest and determines to 
impose its will upon others by force of arms or 
threat of force, other nations find themselves 



confronted with the tragic alternatives of sur- 
render or armed defense. 

"Hope is not dead today because, in the on- 
ward march of civilized man, the forces of 
freedom and progress in the end do triumph. 
In the gi-ave crisis through which mankind is 
passing now, this may not happen until after a 
period of ruthless and unnecessary destruction 
of life and treasure. But the possibility is not 
excluded that, even during the coming year, 
all nations may find in themselves sufficient 
strength of conscience, of reason, of the very 
instinct of self-preservation to return — before 
the forces of destruction have been loosed in all 
their fury — to the tried and proven road of 
friendly and peaceful international relations, 
along which alone the human race can move 
in the direction of material advancement and 
spiritual progress. 

'•\Vliether, during the year 1940, the shadow 
which now overhangs the world deepens or 
whether it lightens and, perhaps, lifts alto- 
gether, the coming months will be, for our peo- 
ple, a period fraught with profound signifi- 
cance. If the warfare now in progress on 
other continents becomes intensified, its effects 
will fall more and more heavily upon us, as 
well as upon those directly engaged. If peace 
should come, we shall be confronted, in our own 
best interest, with the vital need of throwing the 
weight of our country's moral and material in- 
fluence in the direction of creating a stable and 
enduring world order under law, lest the rela- 
tions among nations again assume such a char- 
acter as to make of them a breeding ground of 
economic conflict, social insecurity, and, again, 
war. 

"It is a comforting thought that since the out- 
break of hostilities in Europe, our people have 
shown a remarkable degree of unity in meeting 

11 



12 



DEPAKTMENT OF STATE BULLETIN 



the vast complexity of problems thrust upon 
us by that catastrophe. Only thus can we keep 
strong within, insure the safety and security of 
our own Nation, and make our appropriate con- 
tribution toward helping the world as a whole 
to seek and find the road of peace and progress. 
Never before was there greater need in this 



country for resoluteness of spirit, clear think- 
ing, breadth of vision, and willingness to deal 
with the grave problems before us in the light 
of those basic and crucial considerations which 
affect the lives of each and every one of us 
today, and which will be decisive in shaping our 
Nation's future." 



Traffic in Arms, Tin-Plat e Scrap, etc. 



EXPORTATION OF TIN-PLATE SCRAP 



[Released to the press January 5] 

Allotments totaling 7,263 long tons of tin- 
plate scrap were assigned on December 29, 1939, 
to 35 producers of that commodity for export, 
subject to license, during the calendar year 1940, 
in accordance with the provisions of the rules of 
procedure prescribed by the Secretary of State 
on December 2, 1939.=* Applications were re- 
ceived from 38 companies for allotments total- 
ing 11,961 long tons. Three applicants faOed 
to qualify for allotments because of failure to 
comply with the requirements set forth in the 
rules of procedure. Some of the other applica- 
tions were necessarily reduced in order to com- 
ply with these requirements. Applications 
which conformed with those requirements were 
granted in full. 

Applications for license to export tin-plate 
scrap during the calendar year 1940 may be sub- 
mitted by any producer who has been assigned 
an allotment or by any person authorized by 
such producer to export tin-plate scrap under 
his allotment. 

The attention of the producers to whom allot- 
ments have been assigned has been invited to 
paragraph (7) of the rules of procedure in 
which it is provided that licenses will not be 
issued during the first 6 months of the calendar 
year for the exportation of tin-plate scrap in 
quantities in excess of 50 percent of any allot- 

' See the Bulletin of December 9, 1939 (Vol. I, No. 
24), pp. 677-679. 



ment of 50 long tons or more and to paragraph 
(9) thereof in which it is stated that the Na- 
tional Munitions Control Board may revoke, 
cancel, or modify at any time allotments or 
licenses and may modify the rules of procedure 
under which they have been issued whenever, in 
its opinion, such action is required in order to 
carry out the purposes of the act approved Feb- 
ruai-y 15, 1936. 

Allotments totaling 13,636 long tons of tin- 
plate scrap were assigned for export, subject 
to license, during the calendar year 1939. One 
hundred seventy-two licenses were issued in 
1939 authorizing the exportation of 10,699 long 
tons of tin-plate scrap valued at $200,497.52. 
All licenses issued during 1939 named Japan as 
the country of destination. 



Publications 



Govemmeni publications of interest to readers 
of the ''Bulletin'': 

Address of the President of the United States Delivered 
Before a Joint Session of the Two Houses of Con- 
gress January 3, 19-10, Third Session of the Seventy- 
sixth Congress, 1940. (H. Doc. 528, 76th Cong., 3d 
sess.) 6 pp. 5#. 

Twenty-third Annual Report of the United States Tar- 
iff Commission, 1939. (H. Doc. 503, 76th Cong., 2d 
sess.) vi, 57 pp. 100. 



Foreign Service of the United States 



PERSONNEL CHANGES 



[Released to the press January 6] 

Changes in the Foreign Service of the United 
States since December 15, 1939 : 

Bertel E. Kuniholm, of Gardner, Mass., sec- 
ond secretary of legation and consul at Riga, 
Latvia, has been assigned as consul at Ziirich, 
Switzerland. 

Joseph L. Brent, of Ruxton, Md., second sec- 
retary of embassy at Istanbul, Turkey, has been 
assigned as consul at Wellington, New Zealand. 

Charles A. Bay, of St. Paul, Minn., consul at 
Seville, Spain, has been assigned as consul at 
Mexico, D. F., Mexico. 

Homer M. Byington, Jr., of Norwalk, Conn., 
second secretary of legation at Belgrade, Yugo- 
slavia, has been assigned as consul at Belgrade 
and will serve in dual capacity. 

Joseph C. Satterthwaite, of Tecumseh, Mich., 
second secretary of legation and consul at 
Baghdad, Iraq, has been designated second sec- 
retary of embassy at Istanbul, Turkey. 

David C. Berger, of Gretna, Va., consul at 
Tientsin, China, has been assigned as consul at 
Shanghai, China. 

John Peabody Palmer, of Seattle, Wash., vice 
consul at Saigon, French Indochina, has been 
assigned as vice consul at London, England. 

George Bliss Lane, of St. James, Long Island, 
N. Y., consul at Wellington, New Zealand, has 
been designated third secretary of legation and 
consul at Baghdad, Iraq. Mr. Lane will serve 
in dual capacity. 

Heyward G. Hill, of Hammond, La., consul 
at Zurich, Switzerland, has been designated 
second secretary of embassy and consul at 
Panama, Panama. Mr. Hill will serve in dual 
capacity. 

The following Foreign Service officers, vice 
consuls at their respective posts, have been as- 
signed to the Foreign Service School, effective 
March 5, 1940: 



Niles W. Bond, Lexington, Mass. . . Habana. 

William O. Boswell, New Florence, Pa. Havre. 

Donald W. Brown, New York, N. Y. . Vienna. 

Charles R. Burrows, Willard, Ohio . Habana. 

V. Lansing Collins, 2d, New York, N. Y. Marseille. 

Arthur B. Emmons, 3d, Dover, Mass. . Montreal. 

Nicholas Feld, Vicksburg, Miss. . . . Ziirich. 

William N. Fraleigh, Summit, N. J. . . Naples. 

Fulton Freeman, Pasadena, Calif. . . Mexico, D. F. 

John C. Fuess, Andover, Mass. . . . Mexico, D. F. 
Ogden H. Hammond, Jr., BernardsvlUe, 

N. J Leipzig. 

Boies C. Hart, Jr., Mystic, Conn. . . Cologne. 
Richard H. Hawkins, Jr., Pittsburgh, 

Pa Vancouver. 

Martin J. Hillenbrand, Chicago, lU. . . Ziirich. 

Robert C. Strong, Belolt, Wis. .... Prague. 

The following have been appointed Foreign 
Service officers, unclassified; vice consuls of 
career; and secretaries in the Diplomatic Serv- 
ice of the United States; and they have been 
assigned vice consuls at their respective posts: 

Wymberley DeR. Coerr, New Haven, 

Conn Montreal. 

Adrian B. Colquitt, Savannah, Ga. . . Panama. 

Thomas J. Cory, Glendale, Calif. . . . Vancouver. 

Frederick J. Mann, Brooklyn, N. Y. . . Toronto. 

Julian L. Nugent, Jr., Pecos, N. Mex. . Mexico, D. F. 

Richard H. Post, Quoque, N. Y. . . . Windsor. 

Charles H. Whitaker, Boston, Mass. . Habana. 

Joseph Palmer, 2d, Belmont, Mass. . Mexico, D. F. 



Carroll C. Parry, of St. Joseph, Mo., clerk 
at Prague, Bohemia, has been appointed vice 
consul at Prague, Bohemia. 

Stanley T. Hayes, of New Hampshire, clerk 
at Montreal, Quebec, Canada, has been ap- 
pointed vice consul at Montreal, Quebec, 
Canada. 

The appointment of Thomas R. Flack, of 
Chicago, 111., as vice consul at Frankfort on the 
Main, Germany, has been canceled. Mr. Flack 
will remain as vice consul at Vienna, Germany. 

13 



Treaty Information 



Compiled by the Treaty Division 



NAVIGATION 

Great Lakes-St. Lawrence Waterway 
Project 

On May 28, 1938, the Secretary of State 
addressed a note to the then Canadian Minister 
at Washington transmitting an informal and 
tentative draft of a proposed general treaty 
dealing with the utilization of the Great Lakes- 
St. Lawrence Basin.* On December 26, 1939, 
Mr. Loring Christie, the Canadian Minister at 
Washington, transmitted a projjosal to the Sec- 
retary of State that a meeting be held in Ottawa 
between members of the public services of the 
two countries for informal discussions to clarify 
a nimiber of questions of detail preliminary to a 
consideration of the broader questions of policy 
involved. This invitation has been accepted 
and the following officials will leave Washing- 
ton on Saturday, January 6, to take part in the 
suggested discussions : 

The Honorable Adolf A. Berle, Jr., Assistant 
Secretary of State 

The Honorable Leland Olds, Chairman, Fed- 
eral Power Commission 

Mr. John Hickeeson, Assistant Chief, Division 
of European Affairs, Department of State. 

TELECOMMUNICATIONS 

North American Regional Broadcasting 
Agreement 

Mexico 

The American Ambassador to Mexico re- 
ported by a telegram dated December 29, 1939, 
that the Mexican Senate ratified on December 
28, 1939, the North American Eegional Broad- 
casting Agreement signed at Habana on Decem- 
ber 13, 1937. 



* See Treaty Informatiov, bulletin No. 105, June 1938, 
p. 177 ; also Press Releases of June 4, 1938 (Vol. XVIII, 
No. 453), pp. 621-634. 

14 



This agreement undertakes to establish in 
that region, which consists of Canada, Cuba, 
Dominican Republic, Haiti, Mexico, Newfound- 
land, and the United States, and within the 
standard broadcast band, frequency assign- 
ments to specified classes of stations on clear, 
regional, and local channels with a view to 
avoiding interference which in this region has 
caused great inconvenience to radio listeners. 

The agreement has been ratified by the United 
States of America, Canada, Cuba, and Haiti. 
Under the terms of article V, the agreement to 
be valid must be ratified by Canada, Cuba, Mex- 
ico, and the United States of America. The 
provisions for the ratification, execution, denun- 
ciation, effective date, and term of the agree- 
ment are contained in articles V and VI which 
are printed below: 

"V. Ratification, Execution, and 

Denunciation 

"1. Ratificafion. — To be valid this Agreement 
must be ratified by Canada, Cuba, Mexico and 
the United States of America. 

"If and when three of said four countries 
shall have ratified and the fourth shall, through 
unavoidable circumstances, have been unable to 
ratify but shall have signified to those countries 
that have ratified, its readiness, pending ratifi- 
cation and as an administrative measure, to put 
the provisions of this Agreement (including the 
contents of Appendix I) into effect in whole or 
in part, then such country, together with those 
countries which shall have ratified, may, by 
administrative agreement between them, fix a 
definite date on which they shall give effect to 
such provisions, which date shall preferably be 
one year from the date of such administrative 
agreement. 

"The ratifications must be deposited, as soon 
as possible, through diplomatic channels, in the 
archives of the Government of Cuba. This 
same Government shall, through diplomatic 



JANUARY 6, 1940 



15 



channels, notify the other signatory Govern- 
ments of the ratifications as soon as they are 
received. 

"2. Effect of ratification. — This Agreement 
shall be valid only as between such countries as 
shall have ratified it. 

"3. Execution. — The contracting Govern- 
ments undertake to apply the provisions of this 
Agreement, and to take the steps necessary to 
enforce said provisions upon the private operat- 
ing agencies recognized or authorized by them 
to establish and operate broadcast stations 
within their respective countries. 

"4. Denunciation. — Each contracting Govern- 
ment shall have the right to denounce this 
Agreement by a notification addressed, through 
diplomatic channels, to the Government of 
Cuba, and annoimced by that Government, 
through diplomatic channels, to all the other 
contracting Governments. This denunciation 
shall take effect at the expiration of the period 
of one year from the date on which the notifi- 
cation was received by the Government of Cuba. 
This effect shall apply only to the author of the 
denunciation. This Agreement shall remain in 
force for the other contracting Governments 
but only as between such Goveriunents. 

"VI. Effective Date and Term of the 
Agreement 

"1. Except for the provisions of Section 1 of 
Part III, Section 1 of Part V, and paragraph 3 
of Table VI of Appendix I annexed hereto 
(which provisions shall go into effect immedi- 
ately upon this Agreement becoming valid), 
this Agi'eement shall become effective one year 
after the date it shall have been ratified by the 
fourth of those Governments whose ratification 
is requisite to the validity of this Agreement. 
The Governments will cooperate to the end that, 
wherever possible, the provisions of tMs Agree- 
ment shall be carried out in advance of said ef- 
fective date. 



"2. This Agreement shall remain in effect for 
a period of five years after said effective date." 

Article VII provides that the agreement shall 
be open to adherence in the name of Newfound- 
land. 

HEALTH 

Arrangement for the Establishment of the 
International Office of Public Health 
(Treaty Series No. 511) 

Hitngary 

By a note dated December 30, 1939, the Ital- 
ian Ambassador at Washington informed the 
Secretary of State that on November 17, 1939, 
the Hungarian Government gave notice to the 
Italian Government of its adherence to the Ar- 
rangement for the Establislunent of the Inter- 
national Office of Public Health, signed at 
Rome on December 9, 1907. 

According to the information of the Depart- 
ment of State the countries which have ratified 
and adhered to the arrangement are as follows : 
United States of America, Argentina, Australia, 
Belgium (including Belgian Congo), Bolivia, 
Brazil, Bulgaria, Chile, Czechoslovakia, Den- 
mark, Egypt, Finland, France (including 
French Protectorate of Morocco, Indoclaina, 
Madagascar, French Equatorial Africa, French 
West Indies, and Tunis), Great Britain (in- 
cluding Ceylon, Kenya, Nigeria, Straits Settle- 
ments, Federated Malay States, Gold Coast, 
Hong Kong, Sierra Leone, Tanganyika Terri- 
tory, Uganda, Zanzibar, Palestine, and Sudan), 
Germany, Greece, India, Iran, Iraq, Ireland, 
Italy (including Italian colonies), Japan, Lux- 
emburg, Mexico, Monaco, Morocco, the Nether- 
lands, New Zealand, Norway, Peru, Poland, 
Portugal, Spain (including Spanish Morocco), 
Rumania, Saudi Arabia, Sweden, Switzerland, 
Turkey, Union of South Africa, Syria and the 
Lebanon, Union of Soviet Socialist Republics, 
Uruguay, and Yugoslavia. 



For sale by the Superintendent of Documents, Washington. D. C. — Price 10 cents Subscription price, $2.75 a year 

PUBLISHED WEEKLY WITH THE APPHOVAL OF THE DIHBCTOB OF THE BUBEAU OF THE BUDGET 



THE DEPARTMENT OF STATE 



BULLETIN 



JANUARY 13, 1940 
Vol. II: No. 2g — Publication 142^ 

Qontents 

Europe: Page 

Department of State Ad\asory Committee on Problems 

of Foreign Relations 19 

Aid to Finland 19 

Contributions for relief in belligerent comitries .... 20 

Detention by belligerents of American vessels for 

examination of papers or cargoes . . -. 27 

The American Republics: 

Travel between tbe American Republics: 

Proclamation by the President 28 

Letter from the Secretary of State to the President of 

the American Merchant Marine Institute 28 

Death of an American citizen on the Pan American 

Highway 29 

Commercial Policy: 

Statement by the Secretary of State before the House 

Ways and Means Committee 29 

Extension of the Reciprocal Trade Act: Address by 

Assistant Secretary Grady 38 

Correspondence between the Secretarj' of State and the 

President of the American Federation of Labor ... 42 

Termination of trade-agreement negotiations with 

Argentina 42 

Termination of trade-agreement negotiations with 

Uruguay 43 

Analysis of trade with Canada, 1936-1938 43 

{Over\ 




U. 2, i 

JANf 



International Conferences, Commissions, etc. : ^^se 

International Commission of Inquiry, United States 

and China 48 

Foreign Service of the United States: 

Establishment of diplomatic relations with Australia . 49 

Personnel changes 49 

Treaty Information: 
Health: 

Convention Modifying the International Sanitary 

Convention of June 21, 1926 50 

Arbitration : 

Permanent Court of Arbitration 50 

Conciliation : 

Treaty with China for the Advancement of Peace 

(Treaty Series No. 619) 51 

Commerce : 

Termination of trade-agreement negotiations with 

Argentina 51 

Termination of trade-agreement negotiations with 

Uruguay 51 

Telecommunications : 

International Telecommunication Convention 

(Treaty Series No. 867) 51 

International Consultative Committee on Radio- 

commimications (C. C. I. R.) 51 

Publications 52 



Europe 



DEPARTMENT OF STATE ADVISORY COMMITTEE ON PROBLEMS OF 

FOREIGN RELATIONS 



[Released to the press January 8] 

The war has brought about, and is continu- 
ing to bring about, a series of measures and 
policies on the part of both belligerents and 
neutrals which inunediately affect the United 
States and which may have consequences of an 
enduring nature upon our country's foreign 
relations once peace is established. 

Some of the most important and immediate 
of these measures and policies are in the field 
of economic activity and relations. The war 
has absorbed the labor and production of much 
of the world in armament and military activity. 



Wlien the war ends, problems of readjustment 
to peace-time production will be presented, 
which may gravely affect the United States. 

Accordingly, the Seci'etary of State has set 
up in the Department a committee which will 
gather data on and study both the immediate 
and long-range results of overseas war meas- 
ures and the maimer in which the problems 
arising from them may best be handled so as 
to avoid shock and to prevent undesirable en- 
during results. 

Mr. Welles will serve as chairman and Mr. 
Hugh Wilson as vice chairman of this com- 
mittee. 



■f -f -f + + -f -^ 
AID TO FINLAND 



[Released to the press January 8] 

Following is the text of a communication 
dated December 28, 1939, from the Secretary 
General of the League of Nations to the Ameri- 
can Minister to Switzerland, Mr. Leland 
Harrison : 

"I have the honor to inform you that, in 
accordance with the resolution adopted by the 
Assembly on December 14th, in connection with 
the Finnish appeal, I have addressed to the 
membere of the League the following telegram : 

" 'With reference resolution adopted As- 
sembly December 14th as result Finnish appeal 
beg draw Govermnent's attention particularly 
to last three paragraphs first part resolution, 
namely, "Assembly urgently appeals to eveiy 



member of the League to provide Finland with 
such material and humanitarian assistance as 
may be in its power and to refrain from any 
action which might weaken Finland's power 
of resistance; authorizes the Secretary Gen- 
eral to lend the aid of his technical services in 
the organization of the aforesaid assistance to 
Finland ; and likewise authorizes the Secretary 
General in virtue of the Assembly resolution of 
October 4, 1937, to consult non-member states 
with a view to possible cooperation." Should 
be grateful for information regarding your 
Government's intentions. Avenol, Secretary 
General'. 

"The Assembly having authorized me to con- 
sult non-member states with a view to their 
possible cooperation in the assistance to be 
given to Finland, I shoidd be grateful if you 



20 



DEPARTMENT OF STATE BtTLLETIN 



would enable me to inform the Finnish Gov- 
ernment whether and, if so, to what extent, 
your Government is willing to help." 

On January 5, 1940, the Secretary of State 
instructed the American Minister to Switzer- 
land to address the following note to the Sec- 
retary General of the League of Nations in 
reply to the Secretary General's communication 
of December 28, 1939 : 

"I have the honor to inform you that I have 
been instructed by my Govermnent to acknowl- 
edge the receipt of your communication of 
December 28, 1939 concerning the resolution 
adopted by the Assembly of the League of 
Nations on December 14, 1939, following the 
appeal of the Government of Finland for ma- 
terial and humanitarian assistance, and inquir- 
ing whether my Govermnent would enable you 
to inform the Finnish Government whether, 
and if so, to what extent my Government is 
willing to help. 



"In reply I am instructed to state that the 
Government of the United States has from the 
outbreak of hostilities given tangible indica- 
tion of its sympathy for the people and Gov- 
enmient of Finland in the present situation. 

"Furthermore the American Red Cross and 
private organizations in the United States have 
already extended medical, financial, and other 
aid to the Finnish people and are in consulta- 
tion with agencies of the Finnish Government 
with regard to the most effective manner in 
which such aid may be continued and ex- 
panded. This assistance is no doubt reflected 
in the reports of its needs which the Finnish 
Govermnent is understood to be submitting to 
the Secretariat of the League of Nations, and 
my Govenmient considers that the direct con- 
sultations undertaken by it, and by the Ameri- 
can Red Cross and private agencies, with the 
Government of Finland will adequately meet 
the necessity for avoiding confusion of effort." 



-f -f -f -f -f -♦■ -f 



CONTRIBUTIONS FOR RELIEF IN BELLIGERENT COUNTRIES 



[Released to the press January 9] 

The following list sets forth information in 
regard to persons and organizations which have 
registered with the Secretary of State subse- 
quent to December 4, 1939, pursuant to the 
rules and regulations governing the solicitation 
and collection of contributions to be used for 
medical aid and assistance or for the supplying 
of food and clothing to relieve human suffering 
in the countries now at war, promulgated pur- 
suant to the provisions of section 8 of the act 
of November 4, 1939, as made effective by the 
President's proclamation of November 4, 1939 
(the names in parentheses represent the coun- 
tries to which contributions are being sent) : 



209. Anciens Combattants Frangais de la 
Grande Guerre. 5722 Benner Street, Los An- 
geles, Calif. (France) 

210. North Side Polish Council, Relief Com- 
mittee of Milwaukee, Wis., 2962 North Bre- 
men Street, Milwaukee, Wis. (Poland) 

211. Friends of Poland, 5558 South Fairfield 
Avenue, Chicago, 111. (Poland) 

212. The British War Relief Association of 
Southern California, 212 Bi-adbury Building, 
Los Angeles, Calif. (Great Britain) 

213. United Opoler Relief of New York, care 
of Joe Gi'ossman, 790 Dawson Street, New 
York, N. Y. (Poland) 

214. American Volunteers Ambulance^ Hotel 
Chatham, Forty-eighth and Vanderbilt Ave- 
nue, New York, N. Y. (France) 



JAKUAKY 13, 1940 



21 



215. Mrs. Larz Anderson, 19 Congress Street, 
Boston, Mass. (France) 

216. The Catholic Student War Relief of Pax 
Eomana, Pax Komana Office, Catholic Uni- 
versity of America, Washington, D. C. 
(Poland, France, Germany, and Great 
Britain) 

217. Polish Relief Fund Committee, 604 East 
Forty-second Street, Los Angeles, Calif. 
(Poland) 

218. Polish Relief Committee, 30 Chandler 
Avenue, Taunton, Mass. (Poland) 

219. Relief Society for Jews in Lublin, 1206 
South Lacienega Boulevard, Los Angeles, 
Calif. (Poland) 

220. American Fund for Wounded in France, 
Inc., 72 Pearl Street, Worcester, Mass. 
(Fi'ance) 

221. Polish American Citizens Relief Fund 
Committee, R. F. D. Box No. 42A, Shirley, 
Mass. (Poland) 

222. Irvin McD. Garfield, 30 State Street, 
Boston, Mass. (Great Britain) 

223. Society of the Devotees of Jerusalem, Inc., 
400 East Houston Street, New York, N. Y. 
(Palestine) 

224. Association of Foi-mer Juniors in France 
of Smith College, care of Smith College Club, 
34 East Fiftieth Street, New York, N. Y. 
(France) 

225. The Friends of Normandy, 993 Park 
Avenue, New York, N. Y. (France) 

226. Women's Allied War Relief Association 
of St. Louis, 21 Dartford Avenue, Clayton, 
Mo. (France and Great Britain) 

227. Basque Delegation in the United States of 
America, 60 East Fifty-fourth Street, New 
York, N. Y. (France) 

228. Greater New Bedford British War Relief 
Corps, Cornell Building, Pleasant Street, 
New Bedford, Mass. (Great Britain) 

229. Les Amities Feminines de la France, care 
of Miss B. A. Weill, 315 East Sixty-eighth 
Street, New York, N. Y. (France) 

230. Bishops' Committee for Polish Relief, 
1312 Massachusetts Avenue, NW., Washing- 
ton, D. C. (Poland) 

231. American and French Students' Corre- 
spondence Exchange, (temporary) care of 
Prof. H. C. dinger. School of Education, 
New York University, Washington Square, 
New York, N. Y. (France) ^ 

232. Les Amis de la France a Puerto Rico, 



Ponce de Leon Avenue and Cuervillas Street, 
San Juan, P. R. (France) 

233. English Speaking Union of the United 
States, 30 Rockefeller Plaza, New York, 
N. Y. (France and Great Britain) 

234. Urgent Relief for France, 1622 Rhode Is- 
land Avenue, NW., Washington, D. C. 
(France) 

235. Bundles for Britain, care of John Dela- 
fiold, 20 Exchange Place, New York, N. Y. 
(Great Britain and Dominions) 

236. Boston Branch of the American Fund for 
French Wounded, Inc., 256 Beacon Street, 
Boston, Mass. (France) 

237. Hebrew Christian Alliance of America, 
3508 Ogden Avenue, Chicago, 111. (Poland, 
Germany, and Great Britain) 

238. United Nowy Dworer Relief Committee, 
40 East Seventh Street, New York, N. Y. 
(Poland) 

239. American Association for Assistance to 
French Artists, Inc., care of Mrs. David 
Randall-Maclver, 535 Park Avenue, New 
York. N. Y. (France) 

240. Independent Kinsker Aid Association, 
care of Benj. W. Salzman, Secretary, 3815 
Sea Gate Avenue, Brooklyn, N. Y. (Po- 
land) 

241. American McAll Association, 297 Fourth 
Avenue, New York, N. Y. (France) 

242. Lafayette Fund, 3101 R Street, NW., 
Washington, D. C. (France) 

[Released to the press January 12] 

Following is a tabulation of contributions 
received and funds expended during the months 
of September, October, and November 1939 as 
shown in the reports submitted by persons and 
organizations registered with the Secretary of 
State for the purpose of soliciting and receiv- 
ing contributions for use in belligerent coun- 
tries in conformity with the regulations issued 
pursuant to section 3 (a) of the Neutrality 
Act of May 1, 1937, as made effective by the 
President's proclamations of September 5, 8, 
and 10, 1939, and pursuant to section 8 of the 
act of November 4, 1939, as made effective by 
the President's proclamation of November 4, 
1939: 



22 



DEPARTMENT OF STATE BULLETIN 
Contributions for Relief in Belligerent Cotjnteibs 



Name of organization, city, date of registration, and country or countries 
to which contributions are being sent 



American Auxiliary Committee de L'Union des Femmes de France, New 

Yorlc, N. Y., Nov, 8, 1939. France 

American Committee for Aid to British Medical Societies, New Yorlt, N. Y. 

Sept. 21, 1939. United Kingdom 

American Committee for Christian Refugees, New Yorli, N. Y., Sept. 26, 1939. 

Germany and France _ __ .. 

American Committee for Civilian Relief in Poland, New York, N. Y., Sept. 

14, 1939.» Poland .... 

American Field Service, New York, N. Y., Sept. 27, 1939. France 

American Friends of Czechoslovakia, New York, N. Y., Nov. 2, 1939. Great 

Britain, France, and Bohemia-Moravia _ 

American Frlendsof France, Inc., New York, N. Y.. Sept. 21, 1939. France 

American Friends Service Committee, Philadelphia, Pa., Nov. 9, 1939. United 

Kingdom, Poland. Germany, and France -- ___ 

.\merican German Aid Society, Los .Vngeles. Calif.. Nov. 15, 1939. Germany 
The American Jewish Joint Distribution Committee, Inc., New York, N. Y., 

Sept. 29, 1939.' United Kingdom, Poland, Germany, and France 

American Society for British Medical and Civilian Aid, Inc., New York, 

N. Y., Oct., 19, 1939. Great Britain and France- 

American Society for French Medical and Civilian Aid, Inc., New York, 

N. Y., Oct. 13, 1939. France .. 

American Women's Hospitals, New York, N. Y., Sept. 14, 1939. France and 

England 

Anthracite Relief Committee, Wilkes-Barre, Pa., Sept. 8, 1939. Poland.. 
Associated Polish Societies Relief Committee of 'Webster, Mass., Webster, 

Mass., Sept. 21, 1939. Poland _ 

Associated Polish Societies Relief Committee of Worcester, Mass., Worcester, 

Mass., Sept. 14, 1939. Poland 

Association Franco-Americaine des Parrains et Marraines de Guerre des 

U. S. A., Washington, D.C., Oct. 2, 1939.' France 

Association of Joint Polish-American Societies of Chelsea, Mass., Chelsea, 

Mass., Sept. 15, 1939. Poland 

Beth-Lechcm, Inc., New York, N. Y., Sept. 21, 1939. Poland " 

Board of National Missions of tho Presbyterian Church in the United States 

of America, New York, N. Y., Sept. 26, 1939. Great Britain, France, and 

Germany. . - 

British-American War Relief Association, Seattle, Wash., Nov! 17, 1939". 

United Kingdom and allied countries 

British War Relief Association of Northern California, San Francisco, Calif , 

Oct. 20, 1939. Great Britain and France 

California State Committee for Polish Relief, Culver City, Calif." Sept ' 26 ' 

1939.'' Poland _ 

The Catholic Leader, New Britain, Conn., Sept. 25, 1939. Poland 

Central Citizens Committee, Detroit, Mich., Sept. 14, 1939. Poland 
Central Committee Knesseth Israel, New York. N. Y., Oct. 27. 1939 Palestine 
Central Committee of the United Polish Societies, Bridgeport, Conn , Sept 14 

1939. Poland _ ' 

Central Council of Polish Organisations, New Castle, Pa.! Nov."7"l'9"3g' 

land, Poland, and France.-- 

Central Council of Polish Organizations in Pittsi3"u"rgh!'p'a".rPittsl)ureh "Pa""" 

Sept. 14, 1939. Poland 

Central Spanish Committee for Relief of Refugees, Washington!" Src ! "Seo't 

21,1939. France .. 

Centrala, Passaic, N. J., Oct. 12, 1939. Poland 

Cercle Franfais de Seattle, Seattle, Wash., Nov. 2, 1939. France "and Great 



Eng- 



Chester (Delaware County, Pa.) Polish RelierCommittee, Chest"er","p"a.","Set)t" 
16,1939. Poland 



Circle of Poles of St. Hedwig, Polish Ame'rican'cltize'ns' Committee".' New' 

Britain, Conn., Sept. 20, 1939. Poland 

Citizens Committee tor Relief of War Sufferers in Poiand.'St. 'iouiS' Mo' 

Oct. 16, 1939. Poland 

Club Amical Franfais, Detroit, Mich., Sep"t!'l6", i9"39!'"Fr'ance,""Poian'd""an'd" 

Great Britain -, ... 

Commission for Polish Relief, Inc., New" York!'N!'Y!!'s'ept"ii'i939'« "'Poland ' 
Committee of Mercy Inc., New York, N. Y., Sept. 16, 1939. France, Great' 

Britain, and their allies _- ' 

Committee of the American Fund for Breton Relief! New York NY Oct 



31,1939. France 



Funds re- 
ceived 



None 
1, 496. 10 

536. 59 
5, 093. 85 



Expendi- 
tures for 

relief in 
countries 

named 



None 

None 

536. 69 

3, 222. 45 



Funds spent 
for admin- 
istration, 
publicity, 
affairs, cam- 
paigns, etc. 



None 

None 

None 

1, 871. 40 



Unexpended 
balance as of 
Nov. 30, 1939, 

including 
cost of goods 
purchased 
and still 
on hand 



None 

1, 496. 10 

None 

None 



I Thf/5„"i? ,1" "• '^'' orRanization was revoked on Nov. 17, 1939, at request of registrant. 
balanS of S872 IM 84 'n?,°rinf ,h.°m?,n?h ",''m ^<'"l"«*^.i° noribelligerent as well as belligerent countries. On Nov. 1, the organization had an unexpended 
onexp^nded ba'la^e at the end of thrmonth m''«To'S om 'l^TV^ 1°h "'P'°,'*'<^ '■'" *" ^.""^°'^' $478,617.28 and $1,242,686.48, respecUvily ?eaTng an 
inTsubsequent repoft $108,051.64. A break-down of receipts and expenditures for relief in belJigerent countries wUl be shSwn 

r^<^^^^^t^^i^^i:^rri^:^^!nl^;;.^^^^^ ^y '^ but also m con. 



JANUARY 13, 1940 



23 



Contributions for Relief in Belligerent Countries — Continued 



1939. 



Committee of French-American Wives, New York, N. Y., r 

Prance - 

Committee Representing Polish Organizations and Polish People in Perry, 

N. Y., Perry, N. Y., Oct. 23, 1939. Poland _ 

Connecticut Radio Bureau, Meriden, Conn., Sept. 30. 1939.' Poland . , _ 

East Chicago Citizens' Committee for Polish War Sufferers and Refugees, East 

Chicago, Ind., Oct. 16, 1939. Poland.. 

The Emergency Aid of Pa., Philadelphia, Pa., Oct. 13, 1939. England and 

France - 

The Fashion Group, Inc., New York, N. Y., Nov. IS, 1939. France 

Federated Council of Polish Societies of Grand Rapids, Mich., Grand Rapid.s, 

Mich., Sept. 16, 1939. Poland , 

Federation of Franco-Belgian Clubs of Rhode Island, Woonsocket, R. I., Nov. 

1,1, 1939. France- - 

Federation of French Veterans o( the Great War, Inc., New York, N. Y., Oct. 

11, 1939. France 

Federation of Polish Jews in America, Inc., New York, N. Y., Sept. 14, 1939. 

Poland - - 

The Federation of Polish Societies. Little Falls, N. Y., Oct. 9, 1939. Poland . 
Foster Parents' Plan for War Children, Inc., New York, N. Y., Sept. 21, 1939. 

France 

French and American Association for the Relief of War Sufferers, New York, 

N. Y., Sept. 14. 1939. France .- - 

French Committee for Relief in France, Detroit. Mich., Oct. 17, 1939. France. 

French War Relief, Inc., Los Angeles, Cnlif.. Nov. 16, 1939. France. 

The Friends of Israel Refugee Relief Committee, Inc., Philadelphia, Pa., Oct. 

23, 1939. Canada. France, and England 

Fund for the Relief of Scientists, Men of Letters and Artists of Moscow, New 

York, N. Y., Oct. 20, 1939.» France and England 

General Gustav Orlicz Dreszer Foundation for Aid to Polish Children, Wash- 
ington, D. C, Nov. 3, 19.39. Poland 

General Taufflieb Memorial Relief Committee for France, Santa Barbara, 

Calif., Nov. 17. 1939. France and England. -. 

Golden Rule Foundation, New York, N. Y., Nov. 2, 1939. Poland and 

Palestine 

Orrin S. Good, Spokane, Wash., Sept. 28, 1939.* United Kingdom 

Margaret-Oreble Greenough (Mrs. Carroll Oreenough), Washington, D. C, 

Nov. 21, 1939. France 

Hadassah. Inc.. New York, N. Y., Nov. 15, 1939. Palestine 

Holy Cross Relief Fund Association of New Britain, Conn., New Britain, 

Conn., Sept. 27, 1939. Poland 

Holy Rosary Polish Roman Catholic Church, Passaic, N. J., Sept. 16, 1939. 

Poland -.- 

James F. Hopkins, Inc., Detroit, Mich., Sept. 15, 19.39.- Poland 

Humanitarian Work Committee, Glen Cove, N. Y., Sept. 30. 1939. Poland... 
International Artists' Community Club, Washington, D. C, Oct. 7, 1939.i 

Poland 

International Committee of Young Men's Christian Associations, New York, 

N. v., Sept. 22, 1939. Poland, France, and India 

International Relief Association for Victims of Fascism, New York, N. Y., 

Sept. 25, 1939. France, England, and Germany 

The Kindergarten Unit, Inc., Norwalk, Conn., Oct. 3, 1939. France, Poland, 

United Kingdom, India. Australia, and New Zealand 

Kuryer Publishing Co., Milwaukee, Wis., Sept. 16, 1939. Poland 

Lackawanna County Committee for Polish Relief, Scranton, Pa., Sept. 15, 

1939. Poland 

LaFayette Preventorium, Inc., New York, N. Y., Sept. 21, 1939. France 

League of Polish Societies of New Kensington, Arnold, and vicinity. New 

Kensington, Pa., Nov. 17, 1939. Poland.... 

Legion of Young Polish Women, Chicago, 111., Oct. 2. 1939. Poland.. 

Les Anciens Combattants Franfais de la Grande Guerre (French War Vet- 
erans of San Francisco Benevolent Association), San Francisco, Calif., Oct. 

26, 1939. France 

The Little House of Saint Pantaleon, Philadelphia, Pa.. Sept. 30, 1939. France. . 

L'Union Alsacienne. Inc.. New York, N. Y., Oct. 2S. 1939. France. 

Ruth Stanley de Luze (Baroness de Luzc), Briarclifl Manor, N. Y., Sept. 26, 

1939. • France 

The Maryland Committee for the Relief of Poland's War Victims, Baltimore, 

Md.. Oct. 21. 1939. Poland 



1,000.00 
None 
350.40 



190.00 



Expendi- 
tures for 

reief in 
countries 

named 



None 
223.00 
None 



1.000.00 
None 
200. 00 



1,000.00 
None 
None 



None 



Funds spent 
for admin- 
istration, 
publicity, 
affairs, cam- 
paigns, etc. 



Unexpended 
balance as of 
Nov. 30. 1939, 

including 
cost of goods 
purchased 
and still 
on hand 



None 
None 


None 
None 


1.5.44 


1.70 


21.00 
None 


.')64. 24 
None 


2.50 


624.02 


None 


None 


None 


None 


None 
25.97 


None 
141.95 


451.49 


12,727.88 


114.71 
20.07 
342. 25 


3, 742. 33 
113.08 
860. 30 


119.25 


4, 195. 40 


None 


None 


ll.'i. 54 


None 


None 


10.00 


None 
None 


35.50 
None 


None 
272.94 


72.00 
120,831.13 


None 


460.28 


None 
None 
None 


None 
None 
150.40 


None 


None 


594.08 


505. 92 


423.54 


881.93 


151.89 
11.77 


None 
None 


None 
317.91 


1,681.15 
469. 02 


3.60 
657.20 


87.70 
2,969.72 


139. 48 
None 
None 


2, 393. 44 

6, 534. 87 

309.25 


None 


None 


157.05 


32. 95 



' The registration of this organization was revoked on Nov. 21, 1939, for failure to observe rules and regulations. 

• The registration of this organization was revoked on Dec. 11, 1939, at request of registrant. 

» This registration was revoked on Nov. 16, 1939. at request of registrant. 

■ The registration of this organization was revoked on Oct. 28. 1939. at request of registrant. 

> The registration of this organization was revoked on Dec. 18, 1939, at request of registrant. 

' This registration was revoked on Dec. 13, 1939, at request of registrant. 



Estimated 

value of con- 
tributions 

m kind col- 
lected by 
registrant 

and sent to 
countries 
named 



None 
.None 

None 

None 

$.331. 70 



:, 884. 55 
None 
None 

None 

None 

None 

60.00 



None 

None 
None 
None 

None 

None 

675. OO 



None 
None 
None 

None 

None 



24 



DEPARTMENT OF STATE BULLETIN 
Contributions tob Relief in Belligerent Countries — Continued 



Name of organization, city, date of registration, and country < 
to which contributions are being sent 



Expendi- 
tures for 

relief in 
countries 

named 



Funds spent 
for admin- 
istration, 
publicity, 
affairs, cam- 
paigns, etc. 



Unexpended 
balance as of 
Nov. 30, 1939, 

including 
cost of goods 
purchased 
and still 
on hand 



Massachusetts Relief Committee for Poland, Worcester, Mass., Nov. 9, 1939. 
Poland 

Medem Committee, Inc., New York, N. Y., Sept. 22, 1939.' Poland 

Milford, Conn., Polish Relief Fund Committee, Milford, Conn., Nov. 6, 1939. 
Poland 

Modjeska Educational League Welfare Club at the International Institute, 

Toledo, Ohio, Sept. 15, 1939. Poland 

Mrs. W. Forbes Morgan, New York, N. Y., Sept. 30, 1939." Poland 

Fernanda Wanamaker Munn (Mrs. Ector Munn), New York, N. Y., Nov. 25, 

1939. France 

New Jersey Broadcasting Corporation, Jersey City, N. J., Sept. 13, 1939. 

Poland 

Mrs. Bradford Norman, Jr., New York, N.Y., Oct. 11, 1939." France 

Nowe-Dworer Ladies Benevolent Association, Inc., New York, N. Y., Oct. 25, 

1939. Poland, 

Nowiny Publishing Apostolate. Inc., Milwaukee, Wis., Sept. 26, 1939. Poland,. 

Nowy Swiat Publishing Co., Inc., New York, N. Y., Sept. 11, 1939. Poland 

LePaquetau Front, New York, N. Y., Oct. 6, 1939. France 

The Paryski Publishing Co., Toledo, Ohio, Sept. 15. 1939. Poland 

Poland \Var Sufferers Aid Committee, Cleveland, Ohio, Sept. 16, 1939. Poland.. 
Polish Aid Association of the Sixth Congressional District including Perham 

and Browerville, Minn., Little Falls, Minn., Oct. 27, 1939." Poland 

"Fundusz Ratunkowy" Polish Aid Fund Committee of Federation of Eliza- 
beth Polish Organizations, Elizabeth, N. J., Sept. 23, 1939. Poland,. _. 

Polish American Central Civic Committee of South Bend, Indiana, South 

Bend, Ind., Sept. 19, 1939.!> Poland 

Polish American Council fformerly the Council of Polish Organizations in the 

United States of America), Chicago, HI., Sept. 15, 1939. Poland. 

Polish Army Veterans Association of America, Inc., New York, N. Y.. Sept. 

27, 1939. Poland 

Polish Broadcasting Corporation. New York, N. Y., Sept. 23, 1939. Poland.. 
Polish Business and Professional Men's Club, Los Angeles, Calif., Nov. 17, 1939. 

Poland 

Polish Central Committee of New London, Comi., New London, Conn., Oct. 

13,1939. Poland 

Polish Central Council of New Haven, New Haven, Conn., Sept. 29, 1939. 

Poland ' 

Polish Civic League of Mercer County, Trenton, N. j., Sept. 19, 1939. Poland. 
Polish Civihan Relief Fund, Passaic, N. J., Oct. 27, 1939. Poland 

Polish Club of Washington, Washington, D. C, Sept. 14. 1939. Poland 

Polish Emergency Council of Essex County, N. J., Newark, N. J., Sept. 14, 

1939. Poland 

Polish Episcopal Church 

Sept. 25, 1939. Poland 

Polish Falcons Alliance of America, Pittsburgh, Pa., Sept. 20, 1939. Poland... 
Polish Falcons of America, First District, Inc., Brooklyn, N. Y., Sept. 16, 1939.« 

Poland 

Polish Interorganization Council, Detroit, Mich., Oct. n, 1939. Poland 
Polish Literary Guild of New Britain, Conn., New Britain, Conn., Sept. 21, 

1939. Poland 

Polish Medical Relief Fund of Mount Desert Island, Maine, Bar JHarbor, 

Maine, Sept. 26, 1939.' Poland 

The Polish National Alliance of Brooklyn, United States ofAmerica, Brook- 
lyn, N. Y., Sept. 19, 1939. Poland 

Polish National Alliance of the United States of North America, Chicago, 111., 

Sept. 27, 1939. Poland.. 

Polish National Catholic of the Holy Saviom- Church, Union'CityV'Conn.', 

Sept. 16, 1939. Poland 

Polish National Council of Montgomery County, Amsterdam, N"Y.r6ctri2, 

1939. Poland- 

Polish National Council of New York, New York, N.Y., Sept. 14, 1939"' Po- 



1 the Diocese of Pennsylvania, Philadelphia, Pa., 



land. 



105. 09 

2, 349. 01 
21, 765. 92 
30,823.15 

3, 842. 05 
13.369.07 

156. 30 



707. 83 
3, 393. 99 
1,212.68 

236.05 



None 
2, 1,50. 00 
16,000.00 
22. 761. 26 
3, 448. 56 
13, 288. 40 

None 



None 
None 
None 
213. 30 



819. 70 



47.60 
None 
15.10 
1, 812. 44 
None 
70.67 

6.30 

None 

174. 13 

396. 35 



None 

11.32 

None 
None 
12.00 
22.75 



None 
278. 71 
None 
None 
None 
106.74 
263.03 
7.15 



The registration of this organization was revoked on Dec. 4, 1939, at request of registrant. 
" This registration was revoked on Oct. 11, 1939, at request of registrant. 
» This registration was revoked on Dec. 31, 1939, at request of registrant. 
" The registration of this organization was revoked on Dec. 7, 1939, at request of registrant. 
" Ji"' registration of this organization was revoked on Dec. 29, 1939, for failure to observe rules and regulations. 
« The registration of this organization was revoked on Oct. 12, 1939, at request of registrant. 
' The registration of this organization was revoked on Nov. 28, 1939, at request of registrant. 



57.59 
199.01 
6, 750. 82 
2, 249. 46 
393. 60 
None 

150. 00 

6, 620. 67 

4,971.43 

52, 048. 74 



None 
46.03 

707.83 
3, 393. 99 
1,200.68 

None 



2, 362. 16 

30, 702. 44 

None 

938.64 

8, 458. 65 
312. 66 



JANUARY 13, 1940 



25 



Contributions for Relief in Belligerent Countries — Continued 



Name of organization, city, date of registration, and country or countries 
to which contributions are being sent 



Expendi- 
tures for 

relief in 
countries 

named 



Funds spent 
for admin- 
istration, 
publicity, 
afTalrs, cam- 
paigns, etc. 



Unexpended 
balance as of 
Nov. 30, 1939, 

including 
cost of goods 
purchased 
and still 
on hand 



Estimated 

value of con- 
tributions 

in kind col- 
lected by 
registrant 

and sent to 
countries 
named 



Polish Radio Programs Bureau, Hamtramck, Mirh., Sept. 12, 1939." Poland. 
Polish Relief Association, Town of North Hempstead, Minpola, N. Y., Oct. 

19. 1939. Poland -- 

The Polish Relief Committee, Baltimore, Md., Oct. 20, 1939. Poland 

Polish Relief Committee, Flint. Mii h., Sept. 18, 1939. Poland 

Polish Relief Committee, New Bedford, Ma.ss., Oct. 31, 1939. Poland 

Polish Relief Committee. Rochester, N. V., Nov. 8, 1939. Poland 

Polish Relief Committee of Boston. Boston, Mass., Sept. 14, 1939. Poland.... 
Poli.sh Relief Committee of Brockton, Mass., Brockton, Mass.. Sept. 25, 1939. 

Poland - - - 

Polish Relief Committee of Cambridge, Mass.. Cambridge. Mass., Sept. 16, 

1939. Poland 

Polish Relief Committee of Delaware, Wilmington. Del., Sept. 22, 1939. Poland 
Polish Relief Fund of Fall River, Mass., Fall River, Mass., Nov. 8, 1939. 

Poland 

Polish Relief Committee of Gardner, Mass., Gardner, Mass., Sept. 26. 1939. 

Poland 

Polish Relief Committee of Holyoke, Mass., Holyoke, Mass.. Nov. 4, 1939. 

Poland --- 

Polish Relief Committee of Jackson, Mich., Jackson, Mich., Nov. 9, 1939. 

Poland - - 

Polish Relief Committee of Nassau County, N. Y., Hempstead, N. Y., Oct. 28, 

1939. Poland 

Polish Relief Committee of Philadelphia and Vicinity, Philadelphia, Pa., Sept. 

12, 1939. Poland .._ 

Poli.sh Relief Fund, Detroit, Mich., Sepl. 11, 1939. Poland. 

Polish Relief Fund, Jersey City, N. J., Sept. 12, 1939. Poland 

Polish Relief Fund, Jewett Citv, Conn.. Oct. 3. 1939. Poland 

Polish Relief Fund. Middletown, Conn., Sept. 23, 1939. Poland. 

Polish Relief Fund, Niagara Falls, N. Y., Oct. 26. 1939. Poland. 

Polish Relief Fund Committee of Milwaukee, Milwaukee, Wis., Sept. 26, 1939. 

Poland . ..-.• .- -- -. 

Polish Relief Fund Committee of Passaic and Bergen Counties, Passaic, N. J., 

Sept. 22, 1939.' Poland 

Polish Relief Fund of Irvington. N. J., Irvington, N. J., Sept. 26, 1939. Poland.. 

Polish Relief of Carteret, N. J., Carteret, N. J., Oct. II, 1939. Poland 

Polish Relief Fund of Meriden, Meriden, Conn., Oct. 12, 1939. Poland 

Polish Relief Fund of Palmer, Mass., Three Rivers, Mass., Oct. 20. 1939. Po- 
land. 



Polish Relief Fund of Syracuse. N. Y., and Vicinity, Syracuse, N. Y., Oct. 31, 

1939. Poland 

Polish Union of the United States of North America, Wilkes-Barre, Pa., Sept. 

8, 1939. Poland 

Polish United Societies of Holy Trinity Parish, Lowell. Mass., Sept. 20, 1939. 

Poland 

Polish War SufTerers Relief Committee (Fourth Ward). Toledo, Ohio, Sept. 

21, 1939. Poland 

Polish Welfare Association, Hyde Park, Mass., Sept. 16, 1939. Poland 

Polish Welfare Association of the Archdiocese of Chicago, Chicago, 111., Oct. 

13, 1939." Poland. 

Polish Welfare Council, Schenectady, N. Y., Sept. 22, 1939. Poland 

Polish White Cross Club of West Utica, Ulica. N. Y., Oct. 20, 1939. Poland.. 
Polish Women's Fund to Fatherland, Lawrence, Mass., Sept. 23, 1939. Poland . 
Polish Women's Relief Committee, New York, N. Y., Nov. 24, 1939. France, 

Poland, and Germany 

Polski Komitet Ratunkowy (Polish Relief Fund). Binghamton, N. Y., Sept. 

25. 1939. Poland 

Polsko Narodowy Komitet w Ameryce. Scranton, Pa., Sept. 8, 1939. Poland. .. 
Pulaski Civic League of Middlesex County, N. J., South River, N. J.. Sept. 

30, 1939. Poland- - 

Pulaski League of Queens County, Inc., Jamaica, N. Y., Oct. 21, 1939. Poland.. 
Ri'fugit's D'Alsace- Lorraine en Dordogne, San Francisco, Calif., Nov. 9, 1939. 

France .-. 

Rekord Printing and Publishing Co., Shamokin, Pa., Sept. 14. 1939. Poland.. 
Relief Agency for Polish War Suflercrs, Willimantic, Conn., Sept. 29. 1939.' 

Poland -. 

Relief Committee of United Polish Societies, Chicopee, Mass., Oct. 21. 1939. 

Poland - -. 



620. 40 
668.20 
2, 0.56. 98 
1, 741. 20 
1, 734. 72 
3, 192. 63 



232. 09 

1, 628. 47 

23.59 

660. 01 

100. 25 

13, 774. 57 
70, 408. 88 
18,029.13 
190.40 
2,128.60 
None 

5,844.45 

2, 930. 12 
1, 570. 93 

704. 15 
664.73 

448. 65 

653. 22 

549. 75 

3, 608. 04 



1, .536. 27 

2, 069. 89 
1.774.11 
2, 634. 34 



217.00 
230.21 



None 

None 

1, 300. 00 

None 

1, 000. GO 

I, 500. 00 

None 



None 

200.00 

None 

None 

None 

10. 000. 00 
45,462.03 
44.25 
185. 00 
None 
None 

5, 000. 00 

None 
100.00 
None 
None 



None 
1, 652. 03 



1. 636. 22 

1, 000. 00 

None 

None 



None 
None 



None 

$38.75 
9, .58 
414. 59 
137. 20 
8, .58 
69.05 

70.74 



None 

484. 85 

1.20 

11.00 

20.50 

201. 67 
111.50 
5.''0. 23 



118. 67 
None 
None 
None 

36.60 

None 

None 

149. 40 



44.55 
63. 66 
319. 31 



None 
None 



None 

$481. 65 
5.iS. 62 
342. 39 

1,604.06 
726 14 

1,622.98 

618. 85 

7.50. 45 
240.81 

232.09 

943. 62 

22.39 
639. 01 

79.75 

3, 572. 90 
24. 835. 35 
17, 434. 65 
5.40 
2, 128. 60 
None 

820. 44 

2,811.45 

1, 470. 93 

704. 15 

664. 73 

412. 15 

653. 22 

549. 75 

1, 806. 61 



333. 40 

None 
1, 025. 34 
1,710.45 
2, 315. 03 



217. 00 
230.21 



None 

None 
None 
None 
None 
None 
None 

None 



None 

None 

100.00 

None 

None 

None 
$5, 000. 00 
None 
None 
None 
None 

None 

None 
None 
None 
None 

None 

None 

None 

None 



None 
None 
None 
None 



None 
None 



■ The registration of this organization was revoked on Nov. 21, 1939, at request of registrant. 

' The registration of this organization was revoked on Nov. 21, 1939, because of failure to observe the rules and regulations. However, upon the presen- 
tation subsequently of satisfactory assurances that it would comply in the future with all applicable regulations, the organization was permitted to re- 
register on Dec. 4, 1939, under the same number assigned its previous registration. 

" The registration of this organization was revoked on Dec. 18, 1939, at request of registrant. 

• The registration of this organization was revoked on Nov. 4, 1939, at request of registrant, and upon application the organization was re-registered 
on Dec. 18, 1939. 

203753 — 40 2 



26 



DEPARTMENT OF STATE BULLETIN 
Contributions for Relief in Belligerent CotTNTRiES — Continued 



Name of organization, city, date of registration, and country or countries 
to which contributions are being sent 



Relief Fund tor Sufferers in Poland Committee, Kenosha, Wis., Sept. 25, 1939. 
Poland 

Russian Refugee Children's Welfare Society, Inc., New York, N. Y., Sept. 29, 

1939. Germany, France, and Poland -.. 

The Sacred Heart Roman Catholic Church, Little Falls, N. Y., Little Falls, 

N. Y., Nov. 2, 1939. Poland 

Saint Adalbert's Polish Relief Association, ThompsonvUle, Conn., Nov. 

2, 1939. Poland 

St. Michael's Roman Catholic Parish, Derby, Conn., Oct. 20. 1939. Poland.. 
St. Stephens Polish Relief Fund of Perth Amboy, N. J., Perth Araboy, N. J., 

Sept. 27, 1939. Poland 

Save the Children Federation, Inc. (formerly International Save the Children 

Fundof America, Inc.), New York, N. Y.,Sept.8, 1939. Ensrland and Poland 
Schuylkill and Carbon Counties Relief Committee for Poland, Frackville, Pa., 

Sept. 15, 1939. Poland... 

Scott Park Mothers and Dauehters Club, Toledo, Ohio, Sept. 25, 1939." 

Poland : ..., 

Secours Franco-AmMcain— War Relief, Pittsburgh, Pa., Nov. 20, 1939. 

France 

Share A Smoke Club, Inc., Ithaca, N. Y., Nov. 14, 1939. England and France. . 
Society Francaise de St. Louis, Inc., St. Louis, Mo., Nov. 16, 1939. France.... 
Southbridge Allied Committee for Rehef in Poland, Southbridge, Mass., Nov. 

9, 1939. Poland 

Spanish Refugee Relief Campaign, New York, N. Y., Sept. 20, 1939. France.. 
Springfield and Vicinity Polish Rehef Fund Committee, Springfield, Mass., 

Sept. 23, 1939. Poland 

Toledo Committee for Relief of War Victims, Toledo, Ohio, Sept. 19, 1939. 

Poland- 

Tolstoy Foundation for Russian Welfare and Culture, New York, N. Y., Oct. 

17, 1939. France and Poland 

Mrs. Walter R. Tuckerman, Bethesda, Md., Nov. 24, 1939. Great Britain 

Edmund Tyszka, Hamtramck, Mich., Sept. 19, 1939. Poland 

United American Polish Organizations, South River, N. J., South River, N. J., 

Oct. 20, 1939. Poland 

United Charity Institutions of Jerusalem, New York, N. Y., Oct. 13, 1939. 

Palestine 

United Committee for French Relief. New York, N. Y., Oct. 26, 1939. France. . 
United Polish Central Council of Connecticut, Bridgeport, Conn., Oct. 16, 

1939. Poland . .. 

United Polish Committees in Racine, Wis.. Racine, Wis., Nov. 2, 1939. Poland 
United Polish Organizations of Salem, Mass., Salem, Mass., Oct. 20, 1939. 

Poland 

United Polish Roman Catholic Parish Societies of Oreeiipointi Brooklyn, 

N. Y., Brooklyn, N. Y., Oct. 13, 1939. Poland 

United Pohsh Societies of Bristol, Conn., Bristol, Conn., Sept. 29, 1939. 

Poland 

The United Polish Societies of Bronx County, BronxrNewYorkrN Y.^ 

Nov. 21. 1939.' Poland 

United Polish Societies of Hartford, Corm., Hartford, Conn., Sept. 27, 1939. 

Poland 

United Polish Societies of immaculate Conception Church, SouthiriKtonr 

Conn.. Oct. 13, 1939. Poland 

United Polish Societies of Los Angeles, Los Angeles, 'Calif.,"0ct.""2T, 1939. 

Poland 

United Polish Societies of Manchester, Manchester, Conn.y Nov.' 9. V93'9." 

Poland 

United Reading Appeal for Polish War Sufferers, ReaSngVPa.rSept" 22. 1939.' 

Poland 

Mrs. Paul Verdier Fund, San Francisco, Calif., Oct.'iiri939V'France 

Ware Polish Relief Fund, Ware, Mass., Nov. 4, 1939. Poland 

The Reverend John Wieloch, Millers Falls, Mass., Sept. 27, 1939.' Poland . . . 

Total 



$1,291.26 

2, 317. 31 

138.00 

353. 78 
163.20 

3, 050. 76 

52.00 

1, 351. 25 

120. 72 

None 

1.00 

None 



424. 25 
3, 233. 62 



1, 220. 66 

1, 288. 56 
383.00 
None 

1, 153. 00 
335.20 

1, 015. 11 

71.00 

4, 466. 75 

3, 763. 72 

546. 39 

None 



1, 272, 933. 59 



Eipendi- 
tures for 
relief in 
countries 
named 



$1,000.00 

895.00 

100.00 

None 
None 

None 

None 

None 

103. 26 

None 
None 
None 



None 
500.00 

1, 000. 00 

800. 00 

None 

None 

None 

None 

1,016.11 

65.00 

None 

1, 159. 80 

None 

None 



645,966.91 



Ftmds spent 
for admin- 
istration, 
publicity, 
affairs, cam- 
paigns, etc. 



$10. 70 

667. 43 

1.00 

None 
None 

None 

None 

None 

17.46 

None 

1.00 

None 



3.85 

50.00 

458.21 
None 
None 



42.95 

None 

None 

None 

109. 00 

None 

None 

6.00 

121. 30 
40.46 
36.66 
None 



Unexpended 
balance as of 
Nov. 30, 1939, 

including 
cost of goods 
purchased 
and still 
on hand 



$280. 66 

764. 8i 

37.00 

353. 78 
163. 20 

3. 050. 76 
62.00 

1,351.25 

None 

None 
None 
None 



420.40 

383. 62 

464.02 
40.00 
None 



383. 00 

None 

1, 044. 00 

335. 20 

None 

1.00 

4, 345. 45 

2, E63. 47 

509.83 

None 



" The registration of this organization was revoked on Oct. 23, 1939, at request of registrant. 

' The registration of this organization was revoked on Dec. 13, 1939, at request of registrant. 

» 'The registration of this organization was revoked on Nov. 21, 1939, because of failure to observe the rules and regulations. However, upon the pre- 
sentation subsequently of satisfactory assurances that it would comply in the future with all applicable regulations, the organization was permitted to 
re-register on Nov. 30, 1939, under the same number assigned its previous registration. 

■ This registration was revoked on Oct. 24, 1939, at request of registrant. 



JANUABY 13, 1940 

DETENTION BY BELLIGERENTS OF AMERICAN VESSELS FOR 
EXAMINATION OF PAPERS OR CARGOES 



27 



[Released to the press January 8) 

Following is a list of American vessels in 
addition to the tabulation issued on December 
14, 1939, showing the American vessels which 
have been reported to the Department of State 
as having been detained by belligerents since 
September 1, 1939, for examination of papers 
or cargo. 

It was explained at the Department of State 
that injury to American vessels destined to 
European ports has not resulted, in the main, 
from their diversion from the high seas to 



belligerent ports. With few exceptions Amer- 
ican vessels, for reasons of their own, have put 
into belligerent ports en route to their destina- 
tions, and the principal difficulty thus far en- 
countered by such vessels appears to have arisen 
in connection with delays incident to the exami- 
nations of the vessels and their cargoes before 
being permitted to proceed on their voyages. 
Although all cases of detention may not have 
been i-eported to the Department, the accom- 
panying statement is as nearly complete as is 
possible to arrange it. 



Name of vessel 



Steel Engineer 

Oakwood 

Meanticut 

Excalibur 

Executive 

Exilona 

Oaliwood 



Mormacsun 

Syros 

Exeter 

Nashaba 

Exiria 

Manhattan, 



Owner or operator 



Isthmian S. S. Co 

Lykes Bros. S. S. Co.-. 
Lykes Bros. S. S. Co-._ 
American Export Lines. 

American Export Lines. 



American E.xport Lines. 
Lykes Bros. S. S. Co... 



American Scan tic Line. 



Lykes Bros. S. S. Co... 
American Export Lines. 



Lykes Bros. S. S. Co... 
American Export Lines. 
United States Lines 



Mixed, 6 items to 
be seized. 



Mixed, cotton, cof- 
fee, cocoa, flour, 
etc. 

Mixed, oil, tin- 
plates, machin- 
ery, nickel tub- 
ing. 



British authorities, Dec. 10, at 
Gibraltar. 

British authorities, Dec. 20, at 
Gibraltar. Destination Genoa. 

British authorities, Dec. 17, at 
Gibraltar. 

British authorities, Dec. 17, at 
Gibraltar. Destination Genoa, 
Naples. 

British authorities, Dec. 20, at 
Gibraltar. Destination Piraeus, 
Salonika, Istanbul, Constanta. 
Guaranties received respect to 
certain items, 6 others still 
required. 

British authorities, Dec. 28, at 
Gibraltar. 

French authorities, Dec. 27. 
Intercepted 15 miles off French 
coast en route from Gibraltar 
to Genoa and taken into Ville- 
franche by French naval au- 
thorities. Mistake of boarding 
officer who believed that nota- 
tion in logbook was an order to 
proceed to Marseille. 

British authorities, Jan. 3, 1940. 
Intercepted and taken into 
Kirkwall in combat area. 

French authorities 

British authorities, Jan. 1, 1940, 
at Gibraltar. » - 

British authorities, Jan. 3, 1940, 
at Gibraltar. P' 

British authorities, Jan. 4, 1940, 
at Gibraltar. 

British authorities, Jan. 6, 1940, 
at Gibraltar. 



Dec. 11, 1939. 
Dec. 23, 1939. 
Dec. 18, 1939. 
Dec. 31, 1939. 

Jan. 3, 1940. 



After few 
hours. 



Jan. 7, 1940. 



The American Republics 



TRAVEL BETWEEN THE AMERICAN REPUBLICS 
Proclamation by the President 



By the President of the United States of 
America 

A Proclamation 

Whereas the exigencies of international con- 
flict may be expected to deter travel by Ameri- 
can citizens to the areas involved, and 

Whereas no such deterrent to travel exists 
among the friendly nations of the Western 
Hemisphere, and 

Whereas it is important that we in the 
Americas further consolidate our unity by a 
better knowledge of our own and each others' 
countries through the instrumentality of 
travel, and 

Whereas the facilities of the Government of 
the United States may well be devoted to the 
encouragement of so laudable a program 

Now, therefore, I, Franklin D. Roosevelt, 
President of the United States of America, do 



proclaim 1940 as Travel America Year and do 
invite our own citizens, and friends from other 
lands, to join in a great travel movement, so 
that our peoples may be drawn even more 
closely together in sympathy and understand- 
ing. 

In witness whereof, 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 
thirteenth day of January in the 
[seal] year of our Lord nineteen hundred 
and forty, and of the Independence 
of the United States of America the one hun- 
dred and sixty-fourth. 

Franklin D. Roosea'elt 
By the President: 
Cordell Hull 

Secretary of State. 
[No. 2382] 



Letter from the Secretary of State to the President of the American Merchant 

Marine Institute 



[Released to the press January 9] 

Following is the text of a letter from the 
Secretary of State to Mr. Frank J. Taylor, 
President, American Merchant Marine Insti- 
tute: 

"January 6, 1940. 
"My Dear Mr. Taylor : 

"I acknowledge your letter of December 19,^ 
in which you point out the importance of travel 
to and from North and South America, the 
West Indies, and the Caribbean area ; and sug- 
gest that certain unwarranted fears of the 
American tourist traveling public have re- 
sulted from recent events. This, you point 



' Not printed. 
28 



out, might interrupt that free travel between 
the American nations which the Good Neigh- 
bor policy contemplates. 

"In reply let me say that I appi-eciate fully 
the desires which prompt you to write. This 
Government has consistently endeavored to en- 
courage travel between the American countries. 
The building up of insti'mnentalities of trans- 
portation is, as you say, essential to enhance- 
ment of our social, cultural and business rela- 
tions. In consequence, we are very much con- 
cerned at the unnecessary fears which have led 
some people to curtail tourist or other trips to 
other American countries. 

"This Government is in possession of no in- 
formation which would indicate that sea travel 



JANUARY 13, 1940 



29 



on American flag vessels between the American 
republics and in the Caribbean is unsafe. In 
fact, I know of no instance in the last four 
months in which a single American citizen 
traveling between ports of the American re- 
publics on vessels of anj^ of their flags has been 
subject to any delay or inconvenience because 
of conditions relating to the conflict in Europe. 
"Naturally, in the disturbed state of the 
world, it is no more possible to guarantee ab- 
sence of risk on these trips than it is possible 
to guarantee safety to anyone who starts on 
an automobile touring trip in this country. 
But this consideration is always present, and 
always will be. I hope, therefore, that you will 
continue to encourage free travel and tours be- 
tween the various countries. 
"Sincerely yours, 

CoRDELL Hull" 



DEATH OF AN AMERICAN CITIZEN ON 
THE PAN AMERICAN HIGHWAY 

[Released to the press January 8] 

The American Consul General at Monterrey, 
Mexico, Mr. Dayle C. McDonough, reported to 
the Department of State last night that Mr. 
Charles White Eagle, an American tourist, was 
shot and killed by a highwayman, January 6, 
on the Pan American Highway in the State of 
Tamaulipas about 18 miles south of Linares in 
the State of Nueva Leon. His wife and Mrs. 
Keren Jorgensen, who accompanied him, were 
not injured. 

Mr. and Mrs. Eagle and Mrs. Jorgensen re- 
sided in the United States at 3028 South State 
Street, Salt Lake City, Utah. 



Commercial Policy 



STATEMENT BY THE SECRETARY OF STATE BEFORE THE HOUSE 
WAYS AND MEANS COMMITTEE = 



[Released to the press January 11] 

Mr. Chairman, Members of the CoMMriTEE : 
It is always a pleasure for me to appear before 
the Ways and Means Committee, of which I 
was myself a member for 18 years. I par- 
ticularly appreciate the opportunity thus af- 
forded me to discuss with my old friends on 
the Committee and with its newer members im- 
portant problems of economic policy, the suc- 
cessful solution of which is essential in pro- 
moting the welfare of our Nation and the well- 
being of our people. 

Outstanding among these problems is that of 
foreign trade and of its essential relationship 
both to our domestic prosperity and to world 
peace. This is something with which we are 



' Delivered January 11, 1940. 



all deeply concerned. This is something which 
requires the best cooperative and foresighted 
efforts of both the legislative and the executive 
branches of the Government, if the interests of 
our people are to be properly served. In a 
matter which is so vital to the Nation, political 
considerations and partisanship should have no 
place. 

I. 

In 1934, our Nation embarked upon the re- 
ciprocal-trade-agreements program as an emer- 
gency means of meeting grave emergency con- 
ditions. In inaugurating that program, the 
Congress and the Executive were grappling 
with the pressing needs and deplorable condi- 
tions, here and abroad, with which the Nation 
was confronted. 



30 



DEPARTMENT OF STATE BtJLLETIN 



Our country and the world were still facing 
the difficulties and distress resulting from the 
worst economic depression of modern times. 
That great disaster had resulted from many 
causes, chief among which were the economic 
policies pursued by the nations of the world, 
including our own, since the end of the World 
War. 

The 4-year war had taken a frightful toll of 
suffering and destruction. It had left in its 
wake profound maladjustments and disloca- 
tions. Post-war reconstruction required the 
fullest possible utilization of the natural re- 
sources of the world and of the marvelous 
achievements of science and technology for the 
purpose of repairing the ravages of the war 
and of laying the foundations of economic 
progress and stable peace. This could have 
been accomplished only through vigorous and 
mutually advantageous trade among nations, 
the only practicable method of bringing within 
the reach of all nations the advantages of 
natural resources and of human skills, so un- 
evenly distributed over the face of the earth. 
Instead, the nations of the world, including our 
own, entered upon the road of narrow economic 
nationalism. They built up a constantly ex- 
tending network of disruptive trade restric- 
tions and, in this manner, piled new and even 
more painful dislocations upon the profound 
maladjustments produced by the war. 

For a time, the true nature of the situation 
was obscured by the reckless international bor- 
rowing and lending which characterized the 
first decade after the war. But the unhealthy 
structure, built on these precarious foundations, 
was bound to collapse sooner or later and to 
spread ruin to all phases of economic life 
evei'ywhere. 

The signs of approaching disaster were 
plainly visible for some time before the col- 
lapse actually came at the end of the twenties. 
In the face of this terrifying prospect, and even 
after the calamity was already upon us, the 
statesmen of the world, including our own, 
made the fatal blunder of resorting to the very 
thing that lay at the root of the disaster — a 
still more exaggerated protectionism. Trade 



barriers of every kind, old and new, multiplied. 
Unsalable surpluses became dammed up every- 
where. Combined with other factors, the 
drastic decline of international trade in both 
volume and value caused the great depression 
to spread in extent and intensity, with results 
in terms of widespread human suffering and 
sacrifice that none of us can ever forget. 

Contrary to all theories of autarchy and 
economic self -containment, the fact is that the 
domestic prosperity of every country is tied m 
with the condition of its foreign trade. A col- 
lapse of foreign markets inevitably brings with 
it disorganization and disruption of the do- 
mestic economy, as we discovered to our sorrow 
in the period following the enactment of the 
Hawley-Smoot tariff. In this country, the ill 
effects of the collapse of export outlets for the 
great surplus-producing branches of both agri- 
culture and mdustry rapidly peiTneated all 
branches of our economic life. Even those very 
industries wliich thought they were saving 
themselves by means of embargo tariffs soon 
discovered that, instead, they merely helped to 
ruin their own markets right here in the United 
States. 

In those tragic days, when the avalanche of 
economic dislocations threatened to plunge into 
chaos our entire economic life, vigorous and 
bold action was desperately needed in a num- 
ber of directions. Many measures of a purely 
domestic character had to be taken to restore 
employment, to rebuild prices and values, to 
return to solvency our farms, our factories, our 
banks, our means of transportation, and all the 
other phases of our national life. But it was 
also clear that the hope of attaining full and 
stable prosperity was utterly futile, unless we 
could, at the same time, restore our shriveled 
foreign commerce. At the bottom of the de- 
pression, our foreign trade — exports and im- 
ports combined — amounted to less than 3 billion 
dollars a year, as compared with the prede- 
pression level of more than 9 billions. Billions 
of dollars of lost business activity had to be 
regained, if recovery was to be attained and 
economic progi-ess resumed. 



JANUARY 13, 1940 



31 



II. 



The disruption of international trade, which 
brought on the collapse of our domestic econ- 
omy as well, resulted primarily from the rise of 
excessive and unreasonable trade barriers. 
These were of two types : First, higher tariffs, 
embargoes, quotas, import licenses, exchange 
controls, and numerous other devices for pre- 
venting imports from abroad ; and second, vari- 
ous types of discrimination, which caused a 
diversion of much of what remained of interna- 
tional commerce into umiatural and abnormal 
channels. Our exports had suffered heavily 
from both of these types of trade obstructions. 
Our sales abroad fell from 5.2 billion dollars in 
1929 to 1.6 billions iii 1932. Tlie exports of 
other comitries to us had suffered heavily from 
the excesses of our protectionism. Our for- 
eign trade could be restored only through a 
reduction of these excessive barriers here and 
abroad. 

To accomplish this end, three courses of ac- 
tion were open to us. (1) We could attempt to 
secure agreement among a large number of 
nations for a reduction of trade barriers. (2) 
We could lower our own tariff in the hope that 
other countries would do likewise. Or (3) , we 
could negotiate mutually beneficial trade agi-ee- 
ments with individual countries, based upon a 
I'eciprocal reduction of excessive trade bar- 
riers. 

The first of these methods, under the con- 
ditions which prevailed, was impracticable. 
The second held no certainty of effectiveness, 
since it offered no assurance that other coun- 
tries would also move in the direction of re- 
ducing trade barriers or trade discrimination. 
The third was the only practicable method of 
securing these results. It was the method we 
adopted, the method embodied in the trade- 
agreements program. 

The action of the Seventy-third Congress in 
enacting the trade-agreements program was 
based on the following line of reasoning: 

Exports and imports are interdependent: 
nations cannot sell without buying. The pro- 
motion of our exports cannot be divorced from 



the treatment we accord to our imports, and 
vice versa. To induce other nations to miti- 
gate their excessive obstructions to our exports 
we must, of necessity, stand ready to adjust our 
own excessive trade restrictions. In a world 
caught in a net of complex and complicated 
trade barriers, in a world in which other gov- 
ernments possess means of swift action for 
dealing with these restrictions, it was obviously 
necessary for the legislative and the executive 
branches of our Government likewise to co- 
operate in order to provide the means of deal- 
ing with the emergency. 

These basic ideas were translated into the 
Trade Agi-eements Act. By empowering the 
Executive to proclaim modifications of tariff 
rates and of other methods of regulating im- 
ports through the negotiation of executive 
agreements which provide for improved treat- 
ment of our exports by other countries, the 
Congress recognized the necessity for an emer- 
gency agency to deal with a grave emergency 
condition and created an instrumentality of 
swift and effective action on our part for the 
promotion of our foreign trade, admirably 
suited to the special needs of a disturbed world. 
In doing this, the Congress carefully defined 
the policy, the methods, and the limitations of 
the reciprocal-trade-agi-eements program and 
then entrusted to the Executive the duty and 
responsibility of administering and carrying 
into effect the provisions of the Trade Agree- 
ments Act. These instructions of the Congress 
were so faithfully carried out and subsequent 
events so fully vindicated the eminently prac- 
tical and constructive nature of this method of 
solving a pressing and difficult problem, that 
the Seventy-fifth Congress in 1937 extended 
this authority and responsibility for another 
3-year period. 

We are now approaching the end of this 
second period. Your Committee begins today 
the consideration of the next step. That next 
step should, obviously, be examined in the light 
of past experience, as well as of the outlook 
for the future. I should like, if I may, to 
place befoi-e you my thoughts with regard to 
both of these aspects of the problem. 



32 



DEPARTMENT OF STATE BULLETIN 



III. 

The trade-agreements program was enacted 
for the express purpose of expanding our ex- 
ports through the reduction of trade barriers 
in other countries. I submit that it has done 
so. 

We have concluded 22 reciprocal trade agree- 
ments. The countries with which agreements 
are now in effect represent about 60 percent of 
our total foreign trade. In these agreements, 
valuable concessions have been obtained for 
literally hundreds of our agricultural and non- 
agricultural products. Important foreign mar- 
kets have been kept open or expanded for our 
producers of cotton, wheat, corn, hog products, 
fruits, vegetables, tobacco, lumber, iron and 
steel semimanufactures, automobiles and trucks, 
electrical apparatus, machinery of various 
types, rubber products, textiles, chemicals, 
paints, hides and leather products, and a host 
of American specialties. 

In the face of grave hindrances growing out 
of fears of war and preparations for war, the 
operation of the reciprocal-trade-agreements 
program had the effect of inducing many im- 
portant nations to halt their runaway races in 
the erection of excessive economic barriers to 
trade and gradually to move in the opposite 
direction; while still other nations were in- 
duced to slow down their efforts to attain 
economic self-containment. Furthermore, the 
program was an important factor in bringing 
about a development of closer general relation- 
ships with and among many nations, while it 
was making its important contribution to in- 
come and employment in the United States. 

In considering the actual trade results of the 
program, let me emphasize this fundamental 
fact : when we secure a reduction of obstructive 
trade barriers, as we have done in hundreds of 
instances, we make it easier for our trade to 
flow. This self-evident fact is studiously 
ignored by many persons who are constantly 
seeking to confuse and mislead the public. 

Taking the average figures for the years 1934 
and 1935 and similar figures for the years 1937 
and 1938, we find that our exports to all foreio-n 



countries increased by 1 billion dollars, or 46 
percent. This increase was obviously caused by 
several factors, but the role played in it by the 
trade-agreements program is suggested by the 
following figures: Our exports to trade-agree- 
ment countries rose, during this period, by 61 
percent, while our exports to nonagreement 
countries increased by only 38 percent. 

The effectiveness of the trade-agreements 
program as an agency for expanding our ex- 
ports may be measured in another way. The 
countries with which we have concluded trade 
agreements have generally increased their 
purchases of American products more than 
they have increased their purchases of the 
products of other countries. For example, in 
the years 1936-38, the period of the operation 
of our first trade agreement with Canada, that 
country's imports from the United States were 
42 percent greater than in 1934-35, while its 
imports from other countries than the United 
States increased by only 22 percent. 

These substantial and welcome increases in 
our exports resulted, in large measure, from 
the mitigation of the other countries' trade 
barriers, to which I have already referred. 
They were also the result of an undertaking on 
the part of some countries, which had pre- 
viously discriminated against our goods, to 
accord our products nondiscriminatory treat- 
ment under the operation of the most-favored- 
nation principle in its unconditional form, 
better known as the principle of equality of 
treatment. 

The application of that principle is the only 
effective means of insuring for our producers 
a position of equality of treatment in foreign 
markets. In trade agreements which they con- 
clude with us, the other countries agree to 
extend to our products, immediately and 
automatically, concessions granted to third 
countries. The most-favored-nation clause, 
inscribed in our agreements, is thus an invalu- 
able insurance policy for our exporters against 
one of the most injurious obstructions to 
trade — discrimination in favor of their com- 
petitors in other supplying countries. 



JANUARY 13, 1940 



33 



Under modern trading conditions, when the 
producers of many countries usually compete 
in the same markets, such assurance of non- 
discriminatory treatment is obviously of the 
greatest importance to our exporters. This 
fact has long been recognized in our country, 
as well as the obvious fact that we cannot 
secure this type of treatment abroad, miless we 
are prepared to extend it to other countries. 

It was because of this that, in 1923, Presi- 
dent Harding and Secretary of State Hughes 
formally incorporated the principle of equal 
treatment, or most-favored-nation policy in its 
unconditional form, into the structure of 
our commercial relations with other nations. 
Since then, numerous commercial treaties, em- 
bodying this principle, were negotiated and 
were approved by the Senate. It was for pre- 
cisely the same reason that the principle was 
retained in the Trade Agreements Act and has 
been applied in connection with the trade- 
agreements program. 

Congress has repeatedly insisted that we 
demand unconditional equality of treatment 
from all other countries, empowering the Ex- 
ecutive, if necessary, to impose penalty duties 
on the goods of coimtries refusing to accord us 
equality. I cite as typical instances of this the 
provisions of the Payne-Aldrich Bill, sec. 317 
of the Tariff Act of 1922 passed in the Hard- 
ing administration, and sec. 338 of the Tariff 
Act of 1930 passed in the Hoover administra- 
tion. Of necessity, if our Government is to 
insist on equal treatment, it must be prepared 
to accord it to others. That is all that there 
is to the generalization of concessions under 
the most-favored-nation policy in its uncon- 
ditional form, which, as stated, is simply the 
principle of equality. 

Wlien we extend to other countries wMch do 
not discriminate against our goods the benefit 
of concessions granted in individual trade 
agi'eements, we thereby insure equality of treat- 
ment for our exports over an area far larger 
than that covered by the trade agreements 
themselves. This is not a case of giving away 
something for nothing. So far we have safe- 
guarded in this manner a volume of exports 



several times greater than the value of trade 
on which we have granted generalization of 
concessions to nonagreement countries. The 
policy of equal treatment is not only an in- 
dispensable means of defending our trade 
against the blight of discriminatory practices 
in other countries, but one of the most power- 
ful insti-uments for placing international trade 
relations upon a basis of fair dealing and 
friendliness, without which commerce cannot 
prosper. 

IV. 

By enacting the trade-agreements program, 
the Congress authorized limited adjustments 
of our tariff rates as a means of promoting our 
foreign trade through securing similar adjust- 
ments of excessive trade barriers in other coun- 
tries. It was obviously the intent of the Con- 
gi'ess that, in the process of negotiating trade 
agreements, our own domestic producers should 
be helped rather than hurt. I submit that, in 
cari-ying out the program, the executive branch 
of the Government has willingly and scrupu- 
lously complied with this intent of the Con- 
gress. 

We have reduced duties only in those cases 
in which, after a most careful examination of 
all relevant factors, it was found that existing 
duties were unnecessarily and unduly burden- 
some, and we have done so only in those cases 
in which other countries have agreed to accord 
better treatment to our exports in return for 
tariff adjustments on our part. We have re- 
duced duties only to the extent to which, after 
an equally careful examination, it was found 
that such adjustments would not be prejudicial 
to any established branch of production in 
agriculture, in mining, or in manufacturing in- 
dustry. Where necessary, as an additional safe- 
guard, we have limited the amount of imports 
which would be pennitted to come in at the 
reduced rate of duty. 

In adjusting tariff rates, we have kept well 
within the limits prescribed by the Congress. 
We have gone about the matter as objectively 
and as scientifically as possible, always keeping 
in mind both the position of the particular 



34 

branches of pi'oduction affected and the inter- 
ests of the Nation as a whole. 

No evidence of serious injury has been ad- 
duced in the assertions and allegations which 
have been put forward by the opponents and 
critics of the trade-agreements program. Nat- 
urally, in some individual cases, producers have 
had to make adjustments to the new rates. 
Generally speaking, because of the moderate, 
painstakingly considered, and carefully safe- 
guarded nature of the duty reduction made in 
the trade agreements, such adjustments have 
not occasioned serious difficulty. Tliey have 
been helped by the general improvement of 
domestic conditions and expansion of domestic 
markets resulting in part from the increase of 
our exports. 

In an overwhehning number of cases, allega- 
tions of injury in comiection with each of the 
agreements we have negotiated have been made 
before the particular agreement was concluded, 
at a time when no one, not even those who were 
engaged in the negotiations, knew whether the 
duty on a particular commodity would be re- 
duced, and if reduced, to what extent. Fre- 
quently, allegations of injuiy are made wth 
respect to commodities on which existing duties 
have not been reduced, or with respect to com- 
modities which were left, on the free list even 
by the authors of the Hawley-Smoot tariff. 
In my entire experience, I do not recall a more 
flagrant ajid unscrupulous suppression and mis- 
use of material facts on an issue which is of 
vital significance to every citizen, every home, 
every farm, and every factory. 

The loudest assertions of injury have been 
made in connection with agriculture. What 
are the facts? 

Farmers, as all other producers, reckon their 
well-being basically in terms of the income 
which they receive. By the end of 1932, after 
21/2 years of Hawley-Smoot tariff embargoes, 
farm cash income had declined from 11.2 billion 
dollars to 4.7 billion dollars. By 1938, after 
4 years of the trade-agreements program, it had 
risen to 7.6 billions, excluding benefit payments. 
Does this indicate injui-y? 



DEPARTMENT OF STATE BULLETIN 

The most reckless claims have been made in 
connection with the cattle and the dairy in- 
dustries. The income of the cattle industry, 
which had fallen from $1,495,000,000 in 1929 
to $621,000,000 in 1932, rose to $1,144,000,000 in 
1938. Tlie income of the daii-y industi-y, wliich 
had fallen fi-om $1,844,000,000 in 1929 to $991,- 
000,000 in 1982, rose to $1,398,000,000 in 1938. 
Does this indicate ruin? 

It is sometimes asserted that such increases 
in income do not take into account the devalu- 
ation of the dollar. But changes 'u\ tlie pur- 
chasing power of the dollar are, of course, meas- 
ured by prices. Making due allowance for 
price changes, the fann income in 1938 repre- 
sented at least 40 percent more pm'chasing 
power than did the farm income in 1932. 

I do not claim that the recovery of farm 
income or the rise of the national income in 
general from 40 billions in 1932 to 64 billions 
in 1938 and 68.5 billions in 1939, was wholly 
attributable to improvement in our foreign 
trade whicli has occurred under the trade- 
agreements program ; numerous influences com- 
bined to bring tliis about. But I do maintain 
that the increase of our exports has been a 
factor of great importance in this coimection, 
just as the catastrophic decline of trade under 
the Hawley-Smoot tariff had unquestionably 
contxibuted powerfully to the general economic 
collapse of the early thirties. 

Some light is shed on the present situation hy 
the fact that many of those who are now in- 
sisting upon advising American agriculture in 
opposition to the reciprocal trade policy, which 
has demonstrated its benefits to agriculture, 
were among the identical pei'sons who advised 
the farmers in 1930 that the Snaoot-Hawley Act 
would bi'ing them permanent i)rosperity, 
whereas under such advice the farmers of this 
nation were piloted straight into unprecedented 
bankruptcy. I dare say that the farmers will 
think twice before accepting a second time such 
reckless advice, supported by still more reckless 
statistics. 

V. 

The reason why no evidence of material in- 
jury to our farmers or to any other gi'oup of 



JANUARY 13, 1940 



35 



producers, resulting from the operation of the 
trade-agi-eements program, can be adduced is 
that no such injury has, in fact, occurred. 

During the period of operation of the trade- 
agreements program, increases have occurred in 
both our exports and our imports. Taking the 
average figures for the years 1934 and 1935 and 
the years 1937 and 1938, ^^•e find that while our 
exports rose by 1 billion dollars, our imports 
increased by 671 millions. In 1937 and 1938, 
the excess of exports over imports averaged 700 
million dollars. In 1939, the picture has been 
approximately the same. 

The trade-agreements program has expanded 
markets at home and abroad for all groups of 
producers. This result has been due primarily 
to the method employed in carrying out the 
program. 

I am sure that I do not need to describe that 
method in detail. It has been in operation for 
5^2 years. Its results are embodied in the 
reciprocal trade agreements negotiated to date. 
Let me recall to your minds its main features. 

An interdepartmental organization, consist- 
ing of experienced and well-informed practical 
experts of the Departments of State, Agricul- 
ture, Treasury, and Commerce, and of the 
Tariff Commission, handles the preparation 
and negotiation of the trade agreements. All 
interested parties are given ample opportunity 
to present their views, orally or in writing, with 
respect to every phase of the program. No de- 
cision is reached with regard to action on any 
particular customs duty without an extended 
and profound study of all pertinent data, both 
those assembled by the interdepartmental or- 
ganization itself and those presented to the 
organization by the interested parties — the pro- 
ducers, the consumers, and the merchandisers of 
the commodity involved, and anyone else who 
feels that he or she has an interest in the pro- 
ceedings. The results are reviewed by the 
responsible heads of the departments of Gov- 
ernment participating in the work and, finally, 
by the President. 

The work of the interdepartmental organiza- 
tion in comiection with a particular agreement 
does not cease with the proclamation of the 



agreement. The operation of the agreement is 
under constant review in every phase. The in- 
terdepartmental organization is always ready 
to receive representations from the interested 
parties regarding any aspect of the agreement. 
It is prepared to act whenever new circum- 
stances warrant. 

I invite any pei-son to show a single instance 
of general tariff readjustment either upward 
or downward, in the entire fiscal history of the 
Nation, wherein there has been exercised as 
much impartiality, care, and accuracy as to 
facts as has unifonnly characterized the nego- 
tiation of our 22 trade agreements — or any 
more solicitude for the welfare of agriculture, 
labor, business, and the population of the coun- 
tiy in its entirety. 

The method under which we have been nego- 
tiating trade agreements is democratic in every 
sense of the word. It is a method under which 
no interested party is denied a full hearing and 
under wliich all representations are given the 
most careful study. It is a method under 
which the immensely difficult and complex task 
of promoting general prosperity through stim- 
ulation of foreign trade without material in- 
jury to any domestic producers — a teclinical 
task which can be performed only by imjiartial 
and qualified experts — is handled by such ex- 
perts, within definite limitations laid down by 
the Congress. It is a method under which the 
Congress resen^es its basic prerogatives, while 
putting into operation temporarily the most 
effective means that can be devised to meet a 
grave emergency situation through cooperation 
of tlie legislative and executive bi'anches of the 
Government. The powers given to the Execu- 
tive are strictly limited in both scope and 
duration. I am glad at this time to report on 
the mamier in which we, who have been en- 
trusted by the Congress with a difficult and 
responsible task, have sought to perfonn it. 

VI. 

I should now like to turn to another aspect 
of the problem. There are some who claim 
that w(. have gone too far in taiiff adjustment 
in our effoiis to expand trade. There are oth- 



36 



DEPAKTMENT OF STATE BULLETIN 



ei-s who think that we have not gone far 
enough. To all such critics I would say that 
they have failed to take into consideration all 
the vai-ious and complicated aspects of the 
problem, lliere is nothing paradoxical in my 
statement that the duty adjustments we have 
made have not been such as to prejudice the 
interests of our domestic producers and yet 
have been sufficiently attractive to other coun- 
tries to enable them to grant us valuable con- 
cessions for our exports. Many of the com- 
modities with respect to which duty adjust- 
ments have been made are of a type of which 
we do not produce quantities sufficient for our 
needs, notwithstanding that we have long im- 
posed extremely high tariffs on most of them. 
Again, many impoi-ted conmiodities are so dif- 
ferent in grade, quality, price, or marketing 
season from commodities produced in this coun- 
try that reasonable reductions of existing duties 
on them help foreign producers and benefit our 
consumers without hurting our producers. All 
of these imports, while being useful and bene- 
ficial to our people, provide our foreign cus- 
tomers with the means of paying for our bur- 
densome sui-pluses. 

This situation is fi-equently confused by the 
use of misleading slogans designed to deceive us 
into a disastrous policy of complete embargoes 
which would destroy both our foreign and our 
domestic markets. The size of the American 
market depends upon the Nation's purchasing 
power which, in turn, depends upon the volume 
of business activity — that is to say, farm pro- 
duction, factory production, employment, and 
all the other factors which create the Nation's 
purchasing power. There is a direct :ind un- 
mistakable connection between business activity 
and the voliune of exports. Our cotton belt, 
our tobacco belt, our wheat belt, our corn-hog 
industry, our fruit and vegetable growers, our 
lumber producers, our machine manufacturers, 
and many other branches of our production 
cannot prosper luiless they have adequate for- 
eign markets for their surplus output. De- 
prive them of such markets, and their pur- 
chasing power shrinks, and with it, thtV whole 
Nation's purchasing power declines. ! 



Let me cite again the cases of dairy prod- 
ucts and of cattle. The dairy industry sup- 
plies over 99 percent of the domestic market. 
The cattle industry supplies from 95 to 98' per- 
cent of the domestic market. Under a system 
of complete embargoes, these two industries 
would have 100 percent of the home market, 
but it would be a vastly reduced market, dis- 
organized and shrunken as a result of the de- 
struction of purchasing power in the hands of 
the exporting industries and the consequent, 
curtailment of the Nation's purchasing power. 

Under a system of complete embargoes, we 
would take out of cultivation four times as 
many acres as we could put into cultivation by 
attemptmg to produce the agricultural com- 
modities we now import. That, as Secretary 
Wallace once said, would be like trading dol- 
lars for quarters. 

To be sure, there would be no sense at all in 
our going to the other extreme and throwing 
our domestic market open to foreign competi- 
tion without any regard to the effects of such 
action upon our domestic producers. There is 
a middle ground between these two extremes. 
There is a way of clearing the underbrush of 
excessive protectionism and, in the process, 
stimulating rather than impairing the healthy 
growth of our national economic activity for 
the good of all of its parts. 

That is the crux of our effort. It requires 
caution and infinite care. Our task is to cor- 
rect the errors of the past without producing 
new dislocations. Our aim is to pave the way 
for expansion and progress, not to tear down 
what must be preserved if expansion and prog- 
ress are to be made possible. 

vn. 

It is necessarily a slow process. In a world 
lieaded steadily in the direction of narrow na-' 
tionalism, with all its attendant disasters for 
the well-being of our country and of all coun- 
tries, we have taken a position of leadership 
in an effort to reverse this fatal trend. Our 
work has borne tangible fruit during the 5% 
years of the operation of the trade-agreements 



JANUARY 13, 1940 

program. But the stupendous task involved 
was only partly completed when a widespread 
war again brolie out. That calamity has im- 
posed upon us new tasks and new responsi- 
bilities. 

While hostilities are in progress, it is neces- 
sary for us to defend our export trade from 
the inroads of war-time controls and disloca- 
tions. For this purpose, the trade agreements 
now in effect are of inestimable value. The 
scope for going forward with the program 
during the war is naturally restricted. But the 
need for facilitating trade and for keeping 
alive the principles which underlie the trade- 
agreements program is of crucial importance. 
For our actions now will have an enormous in- 
fluence upon the problems of economic recon- 
struction when hostilities have ceased. 

The experience of the two decades which 
elapsed between the end of the World War 
and the outbreak of a new war in Europe has 
brought out in sharp relief the validity of two 
basic propositions. The first of these is that 
our Nation, and every nation, can enjoy sus- 
tained prosperity only in a world which is at 
peace. The second is that a peaceful world is 
possible only when there exists for it a solid 
economic foundation, an indispensable part of 
which is active and mutually beneficial trade 
among the nations. The creation of such a 
foundation is the second of the two primary 
objectives of the trade-agreements program, 
which seeks the advancement of our domestic 
prosperity and the promotion of world peace. 

The establishment of sound international 
trade relations will be an essential problem of 
post-war reconstruction. What role will our 
country play in this process? 

In the years following the World War, we 
led the procession of destructive protectionism. 
Are we to play this same role again? 

That would be the case if we were now to 
abandon the trade-agreements program. For 
it would be the equivalent of destroying the 
only policy which stood in the recent past, and 
can stand in the immediate future, as a bul- 
wark against a complete reversion to policies 
under which the channels of trade will become 



37 



more and more blocked and the nations of the 
world will continue their disastrous march to- 
ward increasing economic nationalism, regi- 
mentation, economic distress, the dole on an 
ever-growing scale, social instability, and re- 
current warfare. Under such conditions, there 
can be no enduring peace and no sustained 
prosperity for our Nation. 

The trade-agreements program has served us 
well during a period of national emergency. 
It has enabled us to expand our foreign trade 
without introducing far-reaching governmental 
controls, such as have been employed in many 
other countries. 

The world needs today and will need in- 
creasingly tomorrow the surplus production of 
our agriculture and industry, just as our 
farmers and our workmen and our businessmen 
need foreign markets for the maintenance of 
tlieir prosperity. The choice before us is 
whether we shall throw away these precious 
opportunities by abandoning the trade-agi-ee- 
ments program, or whether we shall keep ready 
for use, whenever possible, the necessary means 
of prompt and effective action provided by the 
program. The choice before us is whether we 
shall lead the way toward the slough of despair 
and ruin for ourselves and for others, or toward 
the heights of economic progress, sustained 
jjrosperity, and enduring peace for our Nation 
and for the world. 

VIII. 

Before I finish, I should like to say this. If 
there were any suspicion in my mind that the 
trade-agreements program hurts rather than 
benefits our people, I would be the first to 
abandon it. I have searched diligently and 
painstakingly the mass of evidence on all 
phases of this vital question, and I am firmly 
convinced that it proves overwhelmingly the 
beneficial nature of the trade-agreements pro- 
gram and points unmistakably to the dangers 
inherent in an abandonment or weakening of 
that program. 

I have sought to place before you some of 
this evidence. My associates in the Department 



38 



DEPAKTMENT OF STATE BULLETIN 



of State and the representatives of the other 
departments and agencies participating in the 



trade-agreements work are ready to supply you 
with any further information you may desire. 



■^ -^ ■¥ -^ -^ -^ -^ 



EXTENSION OF THE RECIPROCAL TRADE ACT 

Address by Assistant Secretary Grady ' 



[Released to the press January 12] 

The Trade Agreements Act was passed in 
June 1934 to meet the emergency facing our 
foreign trade. It came up for renewal in 1937, 
and Congress approved its continuance by a 
larger vote than that by which it was originally 
passed. It is now before Congress for a second 
renewal for a 3-year period. 

The emergency which our foreign trade 
faced in 1934 was a serious one. Between 1929 
and 1932 our foreign trade had dropped from 
over 91/2 billion dollars to less than 8 billion 
dollars. Our loss in exports was over 31/2 bil- 
lion dollars. This condition of our trade was 
reflected in a demoralized condition of agri- 
culture, which has always depended for its 
prosperity on foreign outlets. 

In the pre-war days, more than one-half of 
our export trade was made up of our great 
agricultural staples. The decline of foreign 
markets for these staples meant depressed 
prices and farm bankruptcy. The condition 
of agriculture in 1932 was desperate, notwith- 
standing the fact that the Hawley-Smoot 
Tariff Act of 1930 had been passed expressly 
for the purpose of aiding agriculture through 
increased protectionism. The passage of that 
act, based on economic fallacies, was a tragic 
mistake. There was no reason to expect that 
the raising of embargo tariffs around the home 
market would provide adequate markets and 
satisfactory prices for an industry like agri- 
culture which has to compete in world markets 
and against world prices. It had, of course, 

"Delivered on the "Town Hall of the Air" program 
over WJZ in New York City and the network of the 
National Broadcasting Co., January 11, 1940. 



the very opposite effect. By curtailing imports 
and thereby the ability of foreign countries to 
buy American products, we stopped up the for- 
eign outlets for our exports. This in turn re- 
sulted in a slu'inkage in the domestic market, 
for the ability of the owners and workers in 
the export industries to buy in the home mar- 
ket was also curtailed. Agriculture thus suf- 
fered a twofold injury from the Hawley-Smoot 
tariff. 

Since the trade-agreements program was put 
into operation in 1934, agreements with 20 
countries have been made in which increased 
market opportunities have been secured for 
agriculture and industry. These increased 
market opportunities have been secured on the 
basis of reciprocity. We have adjusted our 
tariff rates in exchange for the adjustment of 
the tariff rates and other trade restrictions of 
countries which are customers for our prod- 
ucts. It has been essential that this progi-am 
be operated on the basis of reciprocity because 
of the excessive development throughout the 
world of restrictive nationalistic trade policies 
which have resulted in greatly increased bar- 
riers to trade. It must be observed in passing 
that no small factor in the development of 
such policies and consequently in the increase 
in trade barriers was our own ill-advised ac- 
tion in passing the high Hawley-Smoot Tariff 
Act of 1930. In our more recent policy of cor- 
rective adjustment it has been necessary for us 
to bargain for the lowering of the barriers 
against our trade, but we have not adjusted 
any tariff rates to the detriment of American 
producers; yet by these reciprocally negotiated 
adjustments we have been slowly but steadily 
winning back the lost markets for our staple 



JANUARY 13, 1940 



39 



agricultural products. In spite of this the 
charge is made, and I am sure my good friend, 
Mr. Taber, will make it here this evening, that 
agriculture has received a net injury from this 
program. 

In fact, Mr. Taber has frequently stated 
publicly in effect that trade agreements en- 
courage floods of agricultural imports, displac- 
ing American farm products in the home mar- 
ket, and thus depress domestic prices and the 
incomes of American farmers. 

As a distinguished statesman from this great 
city likes to say, "Let's look at the record." 
The facts are that the farmers of this country 
have secured extremely valuable benefits 
through the safeguarding and expanding of 
foreign markets for our farm surpluses. Agri- 
cultural exports were 662 million dollars in 
1932 and 828 million dollar's in 1938. 

Moreover, agriculture stands to gain impor- 
tant benefits in the home market as the result 
of increased activity in our nonagi'icultural 
export industries. This fact is stressed by Mr. 
T. W. Schultz in his study of the effects of 
trade agreements on American agriculture pre- 
pared for the American Farm Bureau Federa- 
tion. He states as follows: 

"We found for example that the total output 
of farm machinery increased in value from 
1935 to 1937 over $273,000,000 of which about 
16 percent resulted from increased exports. 
Our guess is that purchases of foodstuffs in- 
creased around $1,225,000 to $1,645,000 as a 
result of the rise in pay rolls ascribable to the 
larger exports. Similarly for automobiles and 
motor vehicles we hazarded the guess that ex- 
penditure on foodstuff rose around $2,300,000 
to $3,300,000 because of the expansion in auto- 
mobile and motor vehicle exports from 1935 
to 1937 ; for rubber products the equivalent fig- 
ure for measuring the increase in the purchases 
of food ran around $525,000 to $695,000; and, 
for primary iron and steel products between 
$4,566,000 and $5,502,000 more was spent to 
buy foodstuff because of the larger pay rolls 
resulting from the increase in exports of iron 
and steel." 



The trade agreements thus far concluded are 
with countries which take about 60 percent of 
our total exports. In these agreements we have 
obtained valuable concessions, including bind- 
ing of duty-free entry, for 47 percent of our 
exports of farm products to all countries. 
These concessions cover about three-fourths of 
our exports of farm products to the trade- 
agreement countries themselves. To take a 
specific case, the corn-hog industry is again be- 
coming heavily dependent on export outlets. 
Concessions facilitating our exportation of 
pork, ham, and bacon have been obtained from 
13 countries. On lard nine countries have re- 
duced barriers, while three countries have 
agi'eed not to impose new restrictions. In the 
British agreement the preferential duty against 
lard was removed — a preferential duty im- 
posed, by the way, in retaliation against our 
Hawley-Smoot tariff. On grains and grain 
products barriers against our trade have been 
lowered in all but five of the agreements now 
in effect, and in three of the remaining five 
agi'eements we have received assurances of 
favorable treatment. The British in their trade 
agreement with us last year removed the duty 
on wheat and bound free-entry on corn and 
cotton. Our trade in fruits, both fresh and 
dried, and vegetables has been covered by con- 
cessions in nearly all the agreements so far 
cojisummated. 

As to the results of these concessions, it may 
be noted from statistics of trade that between 
1935 and 1938 our exports of farm products to 
trade-agreement countries increased by nearly 
50 percent, whereas to other countries they 
actually declined slightly. All this has been 
accomplished despite world conditions adverse 
to the development of international trade. 

On the other hand, there is no evidence of 
the import flood of farm products to which Mr. 
Taber and his associates have at times referred. 

There have, of course, been increases in un- 
ports of farm products on which duties have 
been modified. These have been accompanied 
for the most part, however, by an expanding 
home market and rising prices for the domestic 
product involved. Because the opening up of 



40 



DEPAETMENT OF STATE BULLETIN 



export markets stimulates domestic business, it 
is possible under the trade-agreements pro- 
gram to increase imports and at the same time 
to increase the income of American farmers. 
Farm income, exclusive of Government pay- 
ments, has increased by approximately 3 bil- 
lion dollars since 1932. Not only is agriculture 
better off, but even branches of agriculture in 
respect of which duties have been lowered have 
prospered. The duty was lowered on cheese in 
the Canadian agreement which became effective 
January 1936. The farm income from cheese 
was $91,000,000 in 1936 as compared to $47,- 
800,000 in 1932. In 1937, it increased to $96,- 
500,000. There were similar developments in 
the case of lumber, cattle, and other products 
on which duties have been lowered. In the case 
of the cattle industry, income was about a 
billion and a quarter dollars greater in 1938 
than in 1932. It may be noted that in pointing 
out certain increases in farm income, the year 
1932 has been taken as the base year. At that 
time, the Hawley-Smoot tariff, which was in- 
tended to benefit agriculture, had been in op- 
eration for 2 years. It was a factor which was 
partly responsible for, and which aggravated, 
the depression in which the country found 
itself in 1932. No person of sound mind could 
claim that it aided agriculture. On the other 
hand, it has been claimed that the trade- 
agreements program has harmed agriculture. 
The facts, however, do not support this 
contention. 

Again referring to the record, we find that 
our so-called agricultural imports are largely 
noncompetitive. In 1938 our so-called agricul- 
tural imports amounted to 956 million dollars, 
but this included commodities like rubber, cof- 
fee, tea, cocoa, and silk. These, of course, are 
not even produced in the United States. Tlie 
rest of our agricultural imports consist of prod- 
ucts which are considered competitive with do- 
mestic products. The fact is, however, that 
such imports, consisting of sugar, wool, hides, 
and other articles, supplement domestic pro- 
duction which is not adequate for meeting our 
own needs, notwithstanding the existence in 
many cases of high protective duties. 



As a matter of fact, the American farmer 
enjoys 93 percent of the American market. 
This is more than he enjoyed in 1929, when 
the corresponding figure was 90. This does not 
indicate that the American market is being 
flooded with foreign competitive agricultural 
products. If our farmers would have, as I 
understand Mr. Taber desires them to have, 
100 percent of the domestic market, they would 
need to go into the production of coffee, rubber, 
silk, and bananas. Of course, these commod- 
ities could be produced in the United States if 
we wanted to use hothouse facilities on an ex- 
tensive scale and had no regard whatsoever for 
costs. 

If the American farmer insists on having the 
American market exclusively to himself, he 
will cut off his opportunity to secure export 
business so vitally necessary to tlie well-being 
of agriculture in this country. 

Secretary Wallace has stated that the com- 
plete elimination of agricultural imports would 
represent the production of approximately 10 
million acres, whereas the loss of export mar- 
kets would put out of production 40 million 
acres. The trading off of foreign markets for 
our farm products for the home market for 
foreign farm products would, as he pointed out, 
be like swapping dollars for quarters. 

Although Mr. Taber's organization, the 
Grange, opposes this program without offering 
anything in its place but some alluring gen- 
eralities, two other farm organizations, the 
Farm Bureau Federation and the Farmers 
Union, the former of which is by far the largest 
farm organization in the country, have consist- 
ently supported this program as an aid to the 
solution of the agricultural problem. 

The Farm Bureau Federation has had a dis- 
interested economist study each of the agree- 
ments now in effect from the standpoint of 
American agriculture. His reports have shown 
that agriculture has definitely benefited from 
the program. 

One of the most active groups fighting the 
trade-agreements program is the dairy group. 
One might presume that the dairy industry is 
being greatly injured by the trade-agreements 



JANUAEY 13, 1940 

program. This industry has practically the 
whole domestic market. It has more of the 
domestic market than it had in 1929. It en- 
joys, in a word, 991/2 percent of the home 
market. The purpose of the representatives of 
that industry in Washington is presumably to 
get that one-half of 1 percent. There appears 
to be complete disregard of the interests which 
the producers of dairy products have in in- 
creased export markets for American products. 
The benefits which the dairy industry is in a 
position to gain from the trade-agreements 
program are of a twofold nature. In the first 
place, the general stimulus to domestic busi- 
ness and the increased employment of Ameri- 
can workers resulting from an expansion of 
our foreign markets means an increase at home 
in the purchases of dairy products. A statisti- 
cal comparison between dairy income and gen- 
eral business conditions shows that activity in 
the dairy industry is very closely related to 
general economic activity. In the second place, 
as export outlets are opened up for our surplus 
agricultural commodities, there is less tendency 
for our export-producing farmers to go into 
dairying with a resulting depression in dairy 
prices. 

Another industry whose leaders are active in 
opposing the program — the cattle industry — 
enjoys about 96 percent of the American market. 
Since 1923 they have enjoyed on the average 
97 percent of the domestic market. When do- 
mestic prices are high, the percentage of our 
consumption of cattle which is imported in- 
creases; when prices are low, imports are rela- 
tively few. In 1929, cattle imports amounted 
to 6 percent of domestic production, in 1932, 
1 percent. Imports have in fact had a stabiliz- 
ing influence on fluctuations in cattle prices. 
Prices were very high in 1937 and cattle im- 
ports increased. They did not increase enough, 
however, to prevent a buyers' strike on meat 
products. Large sums of money then had to 
be spent by the meat interests at that time on 
advertising and other measures to woo back 
the consumer. 



41 



The corn producers have 100 percent of the 
domestic market, except in drought years when 
they have had only 98 percent and 99 percent 
of the market. Pork producers have 99 per- 
cent of the domestic market. 

There is definite evidence to show that agri- 
culture has benefited substantially from the 
trade-agreements program, and there is no evi- 
dence which has been brought to my attention 
to indicate that farm income has been adversely 
affected as the result of the program. Similar 
facts might be pointed out with reference to 
manufacturing and other industries. I have 
assumed, however, that Mr. Taber, as head of 
one of the three large agricultural organiza- 
tions of this country, is particularly interested 
in the effects of trade agreements on agricul- 
ture, and I have therefore limited my partici- 
pation in the discussion with him this evening 
to this aspect of the subject. 

I am sure that Mr. Taber and his associates 
are perfectly sincere in their position, but I do 
think that they have failed perhaps to consider 
carefully the facts. They probably have ac- 
cepted without much questioning the plausible 
but false conclusion that it is not possible to 
effect tariff adjustments without injuring the 
industries concerned. Apparently, they have 
overlooked the significance of the fact that in- 
creased market opportunities in this country 
for foreign goods are granted only in return 
for similar opportunities abroad for our prod- 
ucts and that the opening up of trade in this 
manner stimulates domestic business and makes 
possible careful adjustments in our import 
duties without injurious effects on anyone. 

I am sure that after our discussion this even- 
ing Mr. Taber will gather his associates to- 
gether to review their position, that they will 
find they have been wrong, and that they, like 
honest, patriotic Americans, will reverse their 
position of opposition to this program and 
urge Congress to renew the act for another 3- 
year period so that the administi'ation in Wash- 
ington can continue to deal with the emergency 
in which agriculture still finds itself. 



42 



DEPARTMENT OF STATE BULLETIN 



CORRESPONDENCE BETWEEN THE SECRETARY OF STATE AND THE 
PRESIDENT OF THE AMERICAN FEDERATION OF LABOR 



[Released to the press January 8] 

Following are the text of a letter fi-om the 
Secretary of State to President William Green 
of the American Federation of Labor and 
President Green's reply : 

"January 8, 1940. 
"My Dear President Green : 

"I notice in a nmnber of the morning news- 
papers of today headlines and implications to 
the effect that the American Federation of 
Labor has expressed its opposition to the re- 
ciprocal trade agreement program and to the 
further continuance of tiae entire program, to- 
gether with existing trade agreements negoti- 
ated under it. 

"I shall thank you to inform me as to 
whether this correctly represents the official 
position of the American Federation of Labor. 
"Sincerely yours, 

CoRDELL Hull" 



"American Federation of Labor, 

Washington, D. C, 

January 8, 191(0. 
"My Dear Secretary Hull : 

"I am pleased to reply to the inquiry sub- 
mitted in your esteemed favor dated January 
8th. The headlines and implications appear- 
ing in a number of newspapers this morning to 
the effect that the American Federation of 
Labor has expressed its opposition to the re- 
ciprocal trade agreement program, and to the 
further continuance of the entire program, are 
incorrect. No such action as set forth in the 
headlines referred to has been taken. 

"I express regret that the misleading head- 
lines referred to were published in a number of 
the morning newspapers. 

"Very sincerely yours, 

William Green" 



-f -f -f -f -f -f -f 



TERMINATION OF TRADE-AGREEMENT NEGOTIATIONS WITH 

ARGENTINA 



[Released to the press January 8] 

Following is a joint statement by the Govern- 
ments of the United States and Argentina: 

"In the reciprocal trade negotiations be- 
tween the Govermnents of the United States 
and Argentina, notwithstanding the efforts of 
both parties, it has not been found possible to 
reach a satisfactory basis to permit the conclu- 
sion of an agreement, and the two Governments 
have agreed to terminate them. 

"In effect the Argentine Government on the 
one hand has not been able to admit that con- 
cessions to be obtained from the United States 
for their typical, regular export products to 
that country, such as linseed and canned beef, 
among others, should be restricted through the 
acceptance of a system of customs quotas 
which would tend to limit the possibility of ex- 



panding its shipments of said products to that 
country. At the same time it has not been pos- 
sible to accede to the adoption of commitments 
considered incompatible with an adequate finan- 
cial policy and of the defense of the currency. 

"On the other hand, the Government of the 
United States, in accordance with its policy as 
invariably applied in the 22 agreements already 
negotiated, of not exposing domestic producers 
to material injury in the process of promoting 
healthy international trade through reciprocal 
concessions, has felt obliged to insist on limi- 
tations of the kind referred to above with re- 
spect to certain commodities. 

"This divergence between the two Govern- 
ments is recognized by both in the same frank 
and friendly spirit which has characterized the 
whole negotiations." 



JANTTAEY 13, 1940 



43 



TERMINATION OF TRADE- AGREEMENT NEGOTIATIONS WITH 

URUGUAY 



[Released to the press January 9] 

The Department of State has announced that 
trade-agreement negotiations with Uruguay 
have been terminated. These negotiations have 
been conducted in an atmosphere of the utmost 
friendliness and cordiality. However, because 



of the similarity in important respects of the 
export trade of Uruguay and Argentina with 
the United States, it has been found necessary, 
in view of the recent termination of negotia- 
tions with Argentina, to terminate also the 
negotiations with Uruguay, 



-♦■-♦■ -f -f -f -f -f 



ANALYSIS OF TRADE WITH CANADA, 1936-1938 



[Released to the press January 7] 

The more rapid increase in Canadian im- 
ports from the United States of products on 
which Canadian duties were lowered in the first 
trade agreement between the United States and 
Canada, as compared with Canadian imports 
of other United States products, is evidence of 
the extent to which the reduction of excessive 
trade barriers tends to stimulate mutually ad- 
vantageous trade. According to an analysis re- 
leased January 7 ^ by the Department of State, 
Canadian imports of reduced-duty products 
from this country averaged 58.2 percent higher 
during the 3-year period 1936-38 as compared 
with 1935, the pre-agreement year, while Cana- 
dian imports from the United States of prod- 
ucts on wliich no reductions were made in the 
Canadian duties increased by only 22.1 percent. 
Canada's total imports from the United States 
increased on the average by 38.5 percent during 
the 3-year period under the first agreement. 

The first agreement with Canada, signed on 
November 15, 1935, and effective on January 1, 
1936, was superseded by a new agreement 
signed on November 17, 1938, and effective on 
January 1, 1939. In the new agreement, the 
reciprocal concessions contained in the first 
^ agreement were, with a few insignificant ex- 
ceptions, continued and extended. Trade data 
available smce the conclusion of the new agree- 
ment with Canada are not yet adequate for a 

* Post, p. 45. 



general appraisal of the effects of that agree- 
ment. 

In 1938, Canadian imports from the United 
States of 424 million dollars were greater by 
115 million dollars than in 1935. Imports of 
reduced-duty products increased by 77 million 
dollars. The 1938 imports from the United 
States were lower than in 1937 but did not 
decline as much as Canadian imports from 
other countries. Other factors such as general 
business activity in the United States and Can- 
ada also influenced trade movements, accord- 
ing to the analysis. 

Among the many reduced-duty products for 
which Canadian imports were substantially 
larger in 1938 than 1935 are : 

Fresh fruits and vegetables 

Wlieat and other grains 

Salted pork, bacon, hams, shoulders, 

and other cured pork 
Printed or dyed cotton fabrics 
Newspapers, advertising pamplilets, 

and other printed matter 
Various petroleum products 
Automobiles and trucks 
Farm implements and machinery 
Metal-working, printing, and mining 

machinery 
Electric motors, radio apparatus, and 

other electrical machinery. 

In contrast to the general decline in total 
Canadian imports in 1938, imports from the 
United States of the following reduced-duty 
products were larger in 1938 than in any other 
of the 3 preceding years: Nuts, onions, and 



44 



DEPARTMENT OF STATE BULLETIN 



tomatoes ; wheat and other grains ; bacon, hams, 
and shoulders; boots, shoes, and slippers of 
leather; printed matter; farm implements and 
machinery; and gasoline. 

Canada also increased its imports in 1938 
as compared with 1935 of certain leading non- 
agreement products, such as books, iron and 
steel sheets and plates ; well-drilling machinery 
of a kind not made in Canada; automotive 
parts for use by Canadian manufacturers of 
automobiles; coal, coke, and products; crude 
petroleum and certain petroleum products. 

United States imports from Canada averaged 
19.8 percent greater in 1936-38 than in 1935, 
although imports from Canada in 1938 were 
lower than in 1935, 1936, or 1937. More plen- 
tiful domestic agricultural supplies coupled 
with slack industrial demand and lowered con- 
simier purchasing power accounted for most of 
the falling off in the United States imports 
from Canada in 1938. 

Tlie leading imports from Canada which 
were lower in 1938 that in 1935 were : Whiskey 
(on which the United States duty was reduced 
in the first agreement) ; by-product feeds, 
shingles, and wood pulp (on which the existing 
United States tariff treatment was bound 
against increase) ; and, among products on 
which no action was taken in the first agree- 
ment, barley and barley malt, corn, and wheat 
both for processing and export and for do- 
mestic use. Although lower than in 1937, the 
value of imports of the following Canadian 
products in 1938 was about the same as in 1935 : 
Cattle, except for breeding; fresh-water fish 
and eels; boards and timber (on certain cate- 
gories of which United States duties were re- 
duced) ; and unmanufactured asbestos and 
calcium cyanamide (on which the existing 
duty-free entry was bound against change). 

The annual values of Canadian imports from 
the United States and United States imports 
from Canada for the past 4 years are given in 
the following table: 



1935 

1936 

1937 

1938 (preliminary) 



Canadian impnrts 
for consumption 
from the United 
States 



$308, 509, 000 
367, 413, 000 
489, 997, 000 
424, 008, 000 



United States im- 
ports for consump- 
tion from Canaaa 



$286, 112,000 
377, 576, 000 
394, 241, 000 
256, 647, 000 



Further details regarding United States 
trade with Canada during the 3 years of the 
first trade agreement between the two countries 
are contained in the analysis released by the 
Department.^ 

In addition to the reciprocal concessions con- 
tained in the first agreement, which were, with 
a few insignificant exceptions, continued and 
extended in the new agreement, the new agree- 
ment also incorporated an undertaking by the 
Canadian Government to exempt from its 3 
percent excise tax, products on which the 
United States obtained scheduled concessions. 
Canadian legislation, effective April 26, 1939, 
removed this 3 percent tax not only on 
scheduled products but also on all products 
imported from the United States. 

United States exports to Canada in the early 
months of 1939 were below the same months 
of 1938. Following the removal of the Cana- 
dian 3 percent excise tax, 1939 exports to 
Canada increased very rapidly, and preliminary 
data show that for the 10 months of 1939 ex- 
jjorts to Canada were practically equal to ex- 
ports during the same period of 1938. 

Keflecting in part increased business activity 
in the United States in 1939, imports from 
Canada this year have exceeded 1938 imports, 
both month by month and for the cumulated 
period to date. Complete detailed data are as 
yet not available to permit an estimate of the 
effect of the present agreement upon this move- 
ment of trade. 



° See Press Releases of November 23, 1935 (Vol. 
XIII, No. 321), pp. 388-442. 



JANUARY 13, 1940 



45 



Analysis of United States-Canadian Trade 
DuKiNG THE Three Years, 1936-38, of the 
First Trade Agreement Between the 
United States and Canada 

In the 3 years 1936-38, during which the 
first trade agreement between the United 
States and Canada was effective, Canadian im- 
ports for consimiption from the United States 
averaged 427 million dollars a year and were 
38.5 percent greater than in 1935, the year be- 
fore the agreement became effective." Cana- 
dian imports of United States products in 
1938, valued at 424 million dollars, were 115 
million dollars greater than in 1935. In 1936, 
Canadian imports from the United States 
amounted to 367 million dollars and in 1937 
to 490 million dollars. Although Canadian 
imports from countries other than the United 
States declined by 20.6 percent from 1937 to 
1938, reflecting in part a decline in Canadian 
business activity, imports from the United 
States declined by only 13.5 percent. 

The value of United States imports for con- 
sumption from Canada in the 3 years 1936-38, 
averaging 343 million dollars, were 19.8 per- 
cent greater than the value of such imports in 
1935. During 1938, the United States imports 
from Canada, valued at 257 million dollars, 
were 10.3 percent less than in 1935 and were 
substantially below imports of 376 million dol- 
lars in 1936 and 394 million dollars in 1937. 
The decline of 34.9 percent in United States 
imports from Canada in 1938 as compared with 
1937 paralleled the decrease of 35.2 percent in 
total United States imports during a period 
when United States industrial production 
averaged 22 percent lower. 

In addition to the concessions exchanged in 

the agreement, various other factors, of course, 

contributed to the movement of trade between 

the United States and Canada during the 3 

, years 1936-38. Through their effect upon price 



"Because of tran.sshipments and other technical dif- 
ficulties, Canadian import data provide a better 
measurement of American goods going into Canada 
than do United States export data. 



levels and demand conditions, increases and 
decreases in the level of business activity in 
both countries caused corresponding changes in 
the volume and value of imports. Fluctuations 
in domestic agi'icultural production in the 
United States M'as also of major importance. 
As a result of the droughts of 1934 and 1936 in 
the United States, there was great pressure to 
import certain agricultural products into the 
United States in 1935, 1936, and part of 1937. 
During the same period. United States pro- 
ducers, with no exportable surplus of a number 
of agricultural products, were unable to take 
full advantage of the lower Canadian duties. 
Unfavorable growing conditions in the prairie 
provinces of Canada also undoubtedly affected 
Canadian imports and exports of certain agri- 
cultural products during this period. 

It is significant, however, that Canadian im- 
ports from the United States of products on 
which Canada lowered its tariffs, increased 
relatively more than total Canadian imports 
from the United States, both on the average 
for 1936-38 over 1935, and for 1938 over 1935. 
Also, Canadian imports of such products from 
the United States in 1938, as compared with 
1937, declined relatively less than total im- 
ports from the United States. 

Canadian Imports From the United States 

The lower trade barriei-s which the United 
States obtained from Canada applied to him- 
dreds of products which that countiy imports 
from the United States. On the average for 
the 3-year period, 1936-38, Canadian imports 
of such products, totaling 190 million dollars, 
were 58.2 percent greater than in 1935. Dur- 
ing 1938 such imports, valued at 197 million 
dollars, were 8.4 percent less than in 1937 but 
were materially above imports valued at 120 
million dollars in 1935 and 156 million dollars 
in 1936. 

Canadian imports were substantially greater 
in 1938 than in 1935 for many of the United 
States products on which Canadian duties were 
lowered by the agreement. 



46 



DEPARTMENT OF STATE BULLETIN 



Among such products were: Certain fresh 
fruits and vegetables, such as grapefruit, let- 
tuce, onions, and tomatoes; wheat and other 
grains and grain preparations; salted pork, 
bacon, hams, shoulders, and other cured pork; 
printed or dyed cotton fabrics; newspapers, 
advertising pamphlets, and other printed mat- 
ter; automobiles and trucks; farm implements 
and machinery; metal-working, printing, and 
mining machinery ; electric motors, radio appa- 
ratus, and other electrical machinery ; and vari- 
ous petroleum products. 

Although Canada's 1938 imports of most 
items were smaller than in 1937, imports from 
the United States were greater in 1938 than in 
any of the 4 years under analysis for the fol- 
lowing reduced-duty products: Nuts; onions 
and tomatoes; wheat and other grains; bacon, 
hams, and shoulders; boots and shoes and slip- 
pers of leather; printed matter; farm imple- 
ments and macliinery ; and gasoline. 

Substantial benefit has been derived from a 
provision of the agreement, under which the 
Canadian Government enacted legislation on 
May 1, 1936, permitting Canadian tourists to 



bring back, duty-free, merchandise purchased 
in the United States up to a value of $100 per 
person. During 1938, such incidental purchases 
were valued at over 8 million dollars (as com- 
pared with 6 million dollars in 1937 and with 
about 3 million dollars from Maj^ 1, 1936, to 
the end of the year) and consisted primarily 
of clothing, boots and shoes, furniture, and 
household apjiliances. 

By main gi-oups of products, the values of 
Canadian imports from the United States for 
the years 1935 through 1938 of commodities on 
which Canadian tariff barriers were lowered 
are shown in the table below. 

Imports from the United States of products 
on which Canada bound its existing tariff 
treatment, were 45.2 percent greater during 
1936-38 than during 1935 and, despite the tem- 
porary recession in trade, were still 38.0 ^Jer- 
cent higher in 1938 than in 1935. Among such 
products, imports from the United States of 
traction engines, and Indian corn for the 
manufacture of starch or cereal products, were 
in each case over 2 million dollars greater dur- 
ing 1938 than during 1935. Although actu- 



Valtje of Canadian Imports From the United States of Commodities on Which Canadian Trade Barriers 
Were Reduced in First United States-Canadian Trade Agreement, Effective January 1, 1936 ° 



Commodity groups 



(Thousands of dollars) 



38 (prelim- 
inary) 



Fresh, dried, and canned fruits 

Fresh, canned, and preserved vegetables and vegetable preparations. 

Grains and preparations 

Other edible and inedible vegetable products 

Animal products 

Textile products 

Rubber products 

Wood and manufactures 

Paper, paper manufactures, and printed matter 

Automotive products 

Various machinery of iron and steel 

Nonferrous metals and manufactures 

Nonmetallic minerals and products 

Chemical products 

Miscellaneous products 

Incidental purchases of returning Canadian tourists ($100 exemption 
from duty began May 1, 1936) 



Total United States products on which Canada lowered its 
trade barriers 



5,519 

3,375 

592 

2,053 

2,905 

6,476 

1,294 

2,809 

8,086 

24, 062 

30, 966 

11, 548 

9,937 

4,760 

5,404 



119,786 



7,240 

4,257 

910 

3,596 

3,772 

8,202 

1,506 

3,767 

10, 595 

27, 418 

42, 657 

14, 557 

11,455 

5,306 

7,695 

2,932 



S, 168 

5,211 

4, 105 

3,967 

3,861 

10,010 

2, 172 

4,775 

13, 192 

38, 154 

64, 798 

19, 549 

14,491 

6,572 

10,216 

6,205 



215, 446 



6,643 

5, 090 

10, 084 

3,420 

4, 125 

9,273 

1,814 

4,379 

13, 470 

26, 576 

54, 372 

15, 920 

16, 075 
6,560 

11,465 

8,009 



197, 275 



' Table compiled from Trade of Canada, Calendar Year, 19S6-WSS, Dominion Bureau of Statistics, Ottawa, Canada. 



JANUARY 13, 1940 



47 



ally greater by 23 million pounds in 1938 than 
in 1935, the value of Canadian imports from 
the United States of cotton and linters was 
lower by 2.5 million dollars. 

For the 3 years 1936-38, Canadian imports 
from the United States of products on which 
neither reduction, bindings, nor other types of 
concessions were obtained from Canada, aver- 
aged 22.1 percent greater than in 1935, and the 
1938 imports of such products were 16.6 per- 
cent above 1935. In the decline of total im- 
ports of United States products between 1937 
and 1938, this group, in falling by 17.8 per- 
cent, showed the largest relative decrease. 

Among the leading nonagi'eement products, 
Canadian imports from the United States of 
books were greater by 700 thousand dollars 
during 1938 as compared with 1935; iron and 
steel sheets and plates, by 2.5 million dollai's; 
well-drilling machinery of a kind not made in 
Canada, by 2 million dollars; various automo- 
tive parts for use by Canadian manufacturers 
of automobiles, by 4 million dollars; coal, coke, 
and products, by 1.5 million dollars ; and vari- 
ous crude and refined petroleum and petroleum 
products, by 5 million dollars. Various non- 
agreement products were imported from the 
United States by Canada in smaller value in 
1938 than in 1935. Among these are resin: 
iron or steel hoops, bands, or strips; bauxite 
ore and manufactures of aluminum; and ani- 
line dyes. 

The accompanying table shows the increases 
of Canadian imports from the United States of 
product gi-oups classified according to agree- 
ment treatment. 

Two other important benefits were obtained 
by the United States in the first agreement and 
continued under the new agi-eement with Can- 
ada. United States ports and transportation 
agencies are now able to handle in transit the 
products of non-Empire countries shipped to 
, Canada through the United States on the same 
terms as if such shipments come directly into 



Canadian ports. This was not possible prior 
to the first agreement. Also United States 
commercial travelers are now peiinitted to take 
samples into Canada under bond instead of 
having to pay the full duty without possibility 
of refund as was the case prior to January 
1, 1936. 



Increase in Canadian Imports From the United 
States Average 1936-38 Over 1935, and 1938 
Over 1935; Products Classified According to 
Treatment Under First Agreement Between 
the United States and Canada "• 



(Values in millions of dollars) 





Yearly average, 


Yearlv 


average. 




1936-38 over 1935 


1938 over 1935 




Value 


Percent <■ 


Value 


Percent « 


Total 


119 


38. 5 


115 


37. 4 


Products on which 


70 


58.2 


77 


64.7 


Canadian duties 










were lowered. 










Products on which 


14 


45.2 


12 


38.0 


existing Canadian 










tariff treatment was 










bound. 










Other products 


35 


22. 1 


26 


16. 6 



" Table rompiled from Trade of Canada. Ca'.mdar Year. 1936-I91S. 
Dominion Bureau of Statistics. Ottawa. Canada. 
^ Percentages are calculated on the basis of full fit^urcs. 



Unfted States Imtorts Fkom Canad.\ 

Almost all the leading products imported 
into the United States from Canada shared in 
the decline of total import.s from Canada in 
1938 over 1937. Also imports of major Ca- 
nadian products were in most cases lower in 
1938 than in 1935. as was the case with total 
imports from Canada. Among the products 
imported into the United States from Canada 
in smaller value in 1938 than in 1935 were: 
Barley and barley malt ; corn ; wheat both for 
processing and export and for domestic use; 
brans, shorts, and other by-product feeds; 
whiskey ; shingles ; wood pulp ; and nickel ore, 
pigs, and oxide. Among leading products 
which were imported from Canada in smaller 



48 



DEPARTMENT OF STATE BULLETIN 



value in 1938 than in 1937 but of which the 
1938 imports were equal to or somewhat greater 
than 1935 imports are included : Cattle (except 
for breeding) ; fresh-water fish and eels; sawed 
boards and timber; uiunanufactm'ed asbestos; 
and calcium cyanamide. 

Among the above products, reductions in 
duty were granted by the United States in the 
first agreement with Canada on whiskey more 
than 4 years old, on certain limited quantities 
of cattle of various weights, on sawed boards, 
and on fresh-water fish. The United States 
duty of 10 percent ad valorem was bound 
against increase on brans, shorts, and other by- 
product feeds while the existing duty-free en- 
try was bound against change for shingles (im- 
ports of which were under quota control in 
1937 and 1938); wood pulp; unmanufactured 
asbestos; calcium cyanamide; and nickel ore 
and oxide. 

As previously stated, various factors, in ad- 
dition to the trade agreement, influenced the 
movement of these goods. The duty conces- 
sions to Canada were granted only after care- 



ful consideration had been given to the possible 
effect of increased imports upon United States 
producers of the same or substitute products. 
Experience has proved that the safeguards were 
adequate. Imports of most of these products 
actually proved small as compared to domes- 
tic production, and, where increases in imports 
occurred, such increases were generally accom- 
l^anied by increases in the domestic prices of 
such products. 

A table showing the total dollar value " of 
Canadian imports from the United States and 
of United States imports from Canada, for 
1935 tlu-ough 1938. follows : 



1935 

1936 

1937 

1938 (preliminary) 



Canadian imports 
for consumption 
from the United 
States 



$308, 509, 000 
367, 413, 000 
489, 997, 000 
424, 008, 000 



United States im- 
ports for consmnp- 
tion from Canada 



$286, 112,000 
377, 576, 000 
394, 241, 000 
256, 647, 000 



• The Canadian dollar was approximately equal to the United States 
dollar during the 4-year period. 



International Conferences, Commissions, etc. 



INTERNATIONAL COMMISSION OF IN- 
QUIRY, UNITED STATES AND CHINA 

[Released to the press January 11] 

The President has appointed Dr. Isaiah Bow- 
man, president of Johns Hopkins University, 
as -Ajnerican national commissioner on the In- 
ternational Conunission provided for under the 
terms of the Treaty for the Advancement of 
Peace between the United States and China, 
signed September 15, 1914.^ Dr. Bowman's ap- 
pointment fills the vacancy caused by the death 
of Dr. Frank J. Goodnow. 



'Treaty Series No. 619 (39 Stat. 1642). 



The present composition of the Commission 

is as follows: 

American commissioners: 

National : Dr. Isaiah Bowman, of Maryland 
Nonnational: Dr. Hafez Afifi Pasha, of 
Egypt 

Chinese comm^issioners : 
National : V. K. Wellington Koo 
Nonnational: Henri de Codt, of Belgium 

Joint commissioner: 

Kjiut Hjalmar Leonard de Hammarskjold, 
of Sweden. 



Foreign Service of the United States 



ESTABLISHMENT OF DIPLOMATIC RELATIONS WITH AUSTRALIA 



[Released to the press January 8] 

Simultaneous announcement is being made in 
Australia and the United States of the estab- 
lisliment of diplomatic relations between the 
two countries. The Prime Minister of Aus- 
tralia made public on January 8 the nomina- 
tion of Mr. Eichard G. Casey, formerly Federal 



Treasurer and at present Minister of Supply, 
as the first Australian Minister to Washington. 
Mr. Casey has had a long record of distin- 
guished public service in Australia and is well 
and favorably known in the United States. 
The ai^pointment of an American Minister to 
Canberra will be announced shortly. 



■f -f -f ■♦■ -f -f -♦- 



PERSONNEL CHANGES 



On January 11, 1940, the Senate confirmed 
the following Presidential nominations: John 
Cudahy, of Wisconsin, now Minister to Ire- 
land, to be Ambassador to Belgium and Min- 
ister to Luxemburg ; George S. Messersmith, of 
Delaware, now an Assistant Secretary of State, 
to be Ambassador to Cuba ; R. Henry Norweb, 
of Ohio, now Minister to the Dominican Re- 
public, to be Ambassador to Peru ; James H. R. 
Cromwell, of New Jersey, to be Minister to 
Canada; Clarence E. Gauss, of Connecticut, 
now Counselor of Embassy and Consul Gen- 
eral at Shanghai, China, to be Minister to 
Australia; Robert M. Scotten, of Michigan, 
now Counselor of Embassy at Madrid, Spain, 
to be Minister to the Dominican Republic ; and 
Breckinridge Long, of Missouri, now special 
assistant in charge of the Special Division of 
the Department of State, to be an Assistant 
Secretary of State. 

[Released to the press January 13] 

Changes in the Foreign Service since January 
'6, 1940: 

Franklin B. Atwood, of Nantucket, Mass., 
consul at Cologne, Germany, will retire from 
the Foreign Service effective May 1, 1940. 



William M. Cramp, of Philadelphia, Pa., 
consul at Warsaw, Poland, has resigned from 
the Foreign Service effective December 20, 
1939. 

The oiScers who have been assigned to the 
Foreign Service School since September 5, 
1939, have now received the following assign- 
ments : 

William Belton, of Portland, Greg., has been 
designated third secretary of legation and vice 
consul at Ciudad Trujillo, Dominican 
Republic. 

William H. Cordell, of Ward, Ark., has been 
assigned as vice consul at Seville, Spain. 

Leon L. Cowles, of Salt Lake City, Utah, 
has been assigned as vice consul at Barcelona, 
Spain. 

H. Francis Cunningham, Ji-., Lincoln, Nebr., 
has been assigned as vice consul at Vigo, 
Spain. 

Philip M. Davenport, of Chevy Chase, Md., 
has been assigned as vice consul at Canton, 
China. 

Richard H. Davis, of Ashville, N. Y., has 
been assigned as vice consul at Tsingtao, 
China. 



50 



DEPAKTMENT OF STATE BULLETIN 



Vernon L. Fluharty, of Worthington, Ohio, 
has been designated third secretary of embassy 
and vice consul at Bogota, Colombia. 

A. David Fritzlan, of Wilmore, Ky., has 
been designated third secretary of legation and 
vice consul at Tehran, Iran, and will serve in 
dual capacity. 

John Goodyear, of Springfield Center, N. Y., 
has been assigned as vice consul at Guatemala, 
Guatemala. 

Robert Grinnell, of New York, N. Y., has 
been assigned as vice consul at Singapore, 
Straits Settlements. 

Roger L. Heacock, of Baldwin Park, Calif., 
has been assigned as vice consul at Rio de 
Janeiro, Brazil. 

John Evarts Horner, of Denver, Colo., has 
been assigned as vice consul at Wellington, 
New Zealand. 

Outerbridge Horsey, of New York, N. Y., 
has been assigned as vice consul at Budapest, 
Hungary. 



Randolph A. Kidder, of Beverly Farms, 
Mass., has been assigned as vice consul at Syd- 
ney, New South Wales, Australia. 

William L. Krieg, of Newark, Ohio, has been 
assigned as vice consul at Basel, Switzerland. 

Carl F. Norden, of New York, N. Y., has 
been assigned as vice consul at Warsaw, Poland. 

David T. Ray, of Arcadia, Calif., has been 
designated language officer at the Embassy at 
Tokyo, Japan. 

Robert W. Rinden, of Oskaloosa, Iowa, has 
been assigned as vice consul at Hong Kong. 

David M. Smythe, of Memphis, Tenn., has 
been assigned as vice consul at Bilbao, Spain. 

Delano McKelvey, of Washington, D. C, vice 
consul at Toronto, Ontario, Canada, has been 
assigned to the Foreign Ser^dce School, effec- 
tive March 5, 1940. 

Owen W. Gaines, of Atlanta, Ga., vice consul 
at Santiago de Cuba, has been assigned as vice 
consul at Ciudad Juarez, Mexico. 



Treaty Information 



Compiled by the Treaty Division 



HEALTH 

Convention Modifying the International 
Sanitary Convention of June 21, 1926 

Anstralia — Denmark — New ZeaHund — Sioeden 
The American Ambassador to France re- 
ported by a despatch dated December 16, 1939, 
that he had been informed by the Ministry for 
Foreign Affairs that the Convention signed at 
Paris on October 31, 1938, Modifying the Inter- 
national Sanitary Convention of June 21, 192G, 
had been ratified and instruments of ratifica- 
tion deposited with the French Government by 
Australia on September 28, 1939 ; by Denmark 
on November 15, 1939; and by Sweden on No- 



vember 14, 1939; also that the adherence of 
New Zealand was deposited on September 30, 
1939. The convention has now been ratified by 
Australia, Denmark, Egypt, France, Great 
Britiiin, Italy, and Sweden, and has been ad- 
hered to by Belgium, New Zealand, and the 
Union of South Africa. 

ARBITRATION 

Permanent Court of Arbitration 

Coilomhia 

The American Ambassador to Colombia re- 
ported by a despatch dated December 19, 1939, 
(hat the President of Colombia has appointed 



JANTJABY 13, 1940 

as members of the Perinanent Court of Arbi- 
tration Senor Dario Echandia, Colombian 
Ambassador at the Vatican; Senor Roberto 
Urdaneta Arbehiez, Colombian Ambassador to 
Peru; and Senor Eaimundo Rivas, Colombian 
Minister to Uruguay. 



CONCILIATION 

'Treaty With China for the Advancement of 
Peace (Treaty Series No. 619) 

The present composition of the Interna- 
tional Commission provided for under the 
terms of the Treaty between the United States 
and China for the Advancement of Peace, 
signed September 15, 1914, appears in this 
Bulletin under the heading "International 
Conferences, Commissions, etc." 

COMMERCE 

Termination of Trade- Agreement Negotia- 
tions With Argentina 

An announcement regarding the termination 
of negotiations of a trade agreement with Ar- 
' gentina appears in this Bulletin under the 
heading "Commercial Policy." 

Termination of Trade-Agreement Negotia- 
tions With Uruguay 

All announcement regarding the termination 
of negotiations of a trade agreement with Uru- 
guay appears in this Bulletin under the head- 
ing "Commercial Policy." 

TELECOMMUNICATIONS 

ilnternational Telecommunication Conven- 
tion (Treaty Series No. 867) 

Iceland 

According to notification No. 345, dated De- 
cember 1, 1939, from the Bureau of the In- 
ternational Telecommunication Union at Bern 



51 



a communication was received by the Bureau 
on November 22, 1939, from the Icelandic Ad- 
muiistration stating that on November 8, 1939, 
the Government of Iceland approved the fol- 
lowing acts signed at Cairo on April 4 and 8, 
1938 : 

General Radio Regulations and Final Protocol 

(Revision of Cairo, 1938) 
Additional Radio Regulations and Additional 

Protwol (Revision of Cairo, 1938) 
Telegraph Regulations and Final Protocol 

(Revision of Cairo, 1938) 
Teleijhone Regulations and Final Protocol 

(Revision of Cairo, 1938). 

International Consultative Committee on 
Radiocommunications (C. C. I. R.) 

There is printed below a translation of the 
communication from the Swedish Administra- 
tion dated November 18, 1939, as published in 
notification No. 345, dated December 1, 1939, 
from the Bureau of the International Tele- 
communication Union at Bern : 

"As indicated in notification No. 332 of the 
Bureau of the Union dated May 16, 1939, the 
fifth meeting of the C. C. I. R. had been sched- 
uled for June 25, 1940. 

"According to Article 2, paragi-aph 2 of the 
internal regulations of the C. C. I. R., the 
Swedish Administration, in its cajjacity of or- 
ganizing administration, should send the invi- 
tation to this meeting to all administrations 
of the International Telecommmiications 
Union and likewise to certain international 
bodies at least six months preceding the date 
mentioned, through the intermediai-y of the 
Bureau of the Union. 

"However, by reason of the present interna- 
tional political situation, we consider it neces- 
sary to postpone the meeting in question to a 
later, indetei-minate date, and we request you 
to be good enough to inform the interested ad- 
ministrations of this fact, adding that a new 
date will be set for the meeting as soon as 
circumstances permit." 



52 



DEPARTMENT OF STATE BULUETIN 



Publications 



Department of State 

Officers' Competency Certificates Convention, 1936: 
Convention Between the United States of America and 
Other Alembers of the International Labor Organiza- 



tion. — Adopted by the General Conference of the 
International Labor Organization, twenty-first session, 
Geneva, October 24, 1936; proclaimed by the Presi- 
dent September 29, 1939. Treaty Series No. 950. 11 
pp. 50. 

Friendship and Cooperation : General Treaty Between 
the United States of America and Panama, and Ex- 
changes of Notes.— Treaty signed at Washington 
March 2, 1936; proclaimed by the President July 27, 
1939. Treaty Series No. 945. 69 pp., maps. 20^. 



For sale by the Superintendent of Documents, Washington, D. C.^ — Price 10 cents Subscription price, J2.75 a year 

PUBLISHED WEEKLY WITH THE APPBOVAL OF THE DIEECTOR OF THE BUREAU OF THE BUDOET 



THE DEPARTMENT OF STATE 



BULLETI 




JANUARY 20, 1940 
Vol. II: No. JO — Publication 1 426 



Qontents 



Europe: 

Aid to Finland: Message of the President 

Air bombings in Finland 

Regulation relating to travel on belligerent vessels . . . 
The American Republics: 

The Relation of the Union of American Republics to 
World Organization: Address by Warren Kelchner . 
Commercial Policy: 

Statement by Assistant Secretary Grady before the 

House Ways and Means Committee 

Reciprocal Trade Agreements: Address by Assistant 

Secretary Grady 

General: 

Death of Senator Borah 

International Conferences, Commissions, etc.: 
International Joint Commission, United States and 
Canada: Questions with respect to waters of Souris 

(Mouse) River • 

Eighth American Scientific Congress 

Golden Gate International Exposition 

Departmental Service: 

Appointment of Warren Kelchner as Chief of the Di- 
vision of International Conferences 

Foreign Service: 

Personnel changes 

\Over\ 




Page 

55 
56 
56 



57 



63 



76 



81 



82 
83 
84 



85 



85 



U. S. SUPERINTLr:-h-;i Of oOCUMtNIb 

FEB ir 1940 



Treaty Information: Page 

Arbitration and Judicial Settlement: 

General Act for the Pacific Settlement of Inter- 
national Disputes 86 

Permanent Court of International Justice 87 

Postal : 

Parcel Post Agreement with Lithuania 88 

Boundary: 

Convention Concerning Boimdary Waters between 
the United States and Canada (Treaty Series 

No. 548) 88 

Publications 88 

Legislation 88 



Europe 



AID TO FINLAND 

Message of the President 



[Released to the press by the White House January 16] 

Following is an identic letter addressed by 
tlie President to the President of the Senate and 
the Speaker of the House of Representatives: 

"January 16, 1940. 
"My De.\k Mr. President: 
"(My Dear Mr. Speaker:) 

"Last month when Ihe Republic of Finland 
paid the regular installment on her debt to the 
United States, I directed the Secretary of the 
Treasury to place the money \n a separate ac- 
count pending such action, if any, as the Con- 
gress might desire to take with respect to it. 

"There is without doubt in the United States 
a great desire for some action to assist Finland 
to finance the purchase of agricultural surpluses 
and manufactured products, not including im- 
plements of war. There is at the same time 
undoubted opposition to the creation of prece- 
dents which might lead to large credits to na- 
tions in Europe, either belligerents or neutrals. 
No one desires a return to such a status. 

'•The facts in regard to Finland are just as 
fully in the possession of every Member of the 
Congress as they are in the Executive Branch of 
the Government. There is no hidden informa- 
tion ; and the matter of credits to that Republic 
is wholly within the jurisdiction of the Con- 
gress. 

"This Government will have early occasion 
to consider a number of applications for loans 
to citizens and small countries abroad, espe- 
cially in Scandinavia and South America. 



That raises the question for the determination 
of the Congress as to whether my recommenda- 
tion made to the Congi-ess some months ago, 
for enlarging the revolving fund in a relatively 
small sum, for relatively small loans, should be 
considei'ed. It goes without saying that if the 
applications for loans can be acted upon favor- 
ably by the Congress, this matter will be kept 
within the realm of our neutrality laws and 
our neutrality policies. 

"An extension of credit at this time does not 
in any way constitute or threaten any so-called 
'involvement' in European wars. That much 
can be taken for granted. 

"It seems to me that the most reasonable 
approach would be action by the Congress 
authorizing an increase in the revolving credit 
fund of the Export-Import Bank and authoriz- 
ing the Reconstruction Finance Corporation to 
purchase loans and securities from the Export- 
Import Bank to enable it to finance exportation 
of agricultural surpluses and manufactured 
products, not including implements of war. 

"It is wholly within the discretion of the Con- 
gress to place a ceiling on the amount of such 
loans. AVhether this legislation should include 
an additional increase in the revolving credit 
fund of the Export-Import Bank, in order to 
jirovide for additional loans to increase our 
trade with South and Central America, is also 
within the discretion of the Congress. 
"Very sincerely yours, 

Franklin D. Roosevelt" 
55 



56 



DEPARTMENT OF STATE BULLETIN 

AIR BOMBINGS IN FINLAND 



[Released to the press January 15] 

The American Minister to Finland, Mr. 
H. F. Arthur Schoenfeld, reported to the De- 
partment that the first air bombing at Helsinki 
since December 25 took j)lace on the afternoon 
of January 13, and that bombs fell within 250 
yards of the new Legation building in which 
Mr. Frederick Larkin, Chief of the Foreign 
Service Buildings OflBce of the Department of 
State, and Mr. R. R. Montell, Department Su- 
pervisor of Construction, were at work. The 
Minister stated that some civilians were re- 
ported killed and injured. 

[Released to the press January 15] 

The American Minister to Finland has 
reported to the Department of State that 8 
or more Soviet planes flying a southerly course 
at an altitude of 1,000 meters and below the 



clouds at about 10 o'clock of the morning of 
January 14, dropped not less than 20 incen- 
diary and explosive bombs of varying size and 
apparently closely grouped over the villa in 
Koklax occupied by Minister Schoenfeld and 
Secretaries L. Randolph Higgs and Robert 
Mills McClintock until January 7 last when 
they removed to GrankuUa. 
Mr. Schoenfeld reported further: 
"One small incendiary bomb passed through 
roof of villa and entered living room destroy- 
ing furniture but fire was extinguislied by 
watchman while numerous holes in various 
parts of the house were caused by splinters 
from three large bombs which exploded within 
25 yards of the villa. I counted 16 craters of 
large and small dimensions within one hundred 
yards of the house. No military objective is 
known to be in immediate vicinity of the villa." 



-♦- -f 4- -f -f -f ^ 



REGULATION RELATING TO TRAVEL ON BELLIGERENT VESSELS 



[Released to the press January 16] 

Following is a regulation relating to travel 
on belligerent vessels, which is codified under 
Title 22: Foreign Relations; Chapter I: De- 
partment of State; and Subchapter A: The 
Department, in accordance with the require- 
ments of the Federal Register and the Code of 
Federal Begulatians: 

"Pursuant to the authority contained in the 
President's Proclamation No. 2374 of Novem- 
ber 4, 1939, issued pursuant to section 1 of the 
Neutrality Act of 1939, I, Cordell Hull, Secre- 
tary of State of the United States, hereby pre- 
scribe the following regulation, amending the 
regulations issued on November 6, 1939,^ as 



amended by regulations issued on November 
17, 1939,- and December 14, 1939,^ relating to 
travel on belligerent vessels: 

''Part .550— Travel 

"§ 55C.3 American, nationals in cortibat 
areas — (g) Travel on belligerent vessels in Bay 
of Fundy. American nationals may travel on 
belligerent vessels in the Bay of Fundy and its 
dependent waters. (Sec. 1, Public Res. 54. 
76th Cong., 2d sess., approved Nov. 4, 1939; 
Proc. No. 2374) 

Cordell Hull 
Secretary of State.'''' 

"January 16, 1940." 



'22 CFB r)5C.l-2. (4 F. R. 4.509 DI) 



= 22 CFR 55C.2-3 (b)-(f ) (l)-(4). (4 F. R. 4641 
DI) 

'22 CFR 55C.3 (f)(5). (4 F. R. 4871 DI) 



The American Republics 



THE RELATION OF THE UNION OF AMERICAN REPUBLICS TO 
WORLD ORGANIZATION 

Address by Warren Kelchner * 

not the record of the Western Hemisphere. In 
the Americas there has been a steady and 



[Released to the press January 18] 

It is important when considering the kind of 
world organization that can best serve the 
cause of peace and insure the democratic way 
of life that attention be given to the relation- 
ship and the significance of the inter- American 
organization for the maintenance of peace and 
world order. In no other part of the world 
is there to be found such a promising picture 
of international cooperation as that presented 
in the Americas. Nowhere are the relations 
among ai group of nations so friendly and 
cordial. 

The close collaboration among the American 
republics during recent years, as contrasted 
with developments in other parts of the world, 
places increased emphasis upon that relation- 
ship which is known as American solidarity. 
During a shoit period of a quarter of a century 
\vp have witnessed in some parts of the world 
a vicious circle in international relationships. 
A World War which cost millions of lives and 
losses totaling billions of dollars was followed 
by a desperate attemi^t to organize internation- 
ally for peace. After a short time, misgivings 
on the part of many nations regarding the 
eflFectiveness of such international organization 
began to multiply, and in the past few years 
there has been in some quarters a complete and 
wanton disregard for peace agencies and peace 
treaties, and with it the unleashing once again 
of the horrible instruments of war and destruc- 
tion. 

Such is the record of the past 25 years in 
many parts of the world. Fortunately that is 



^ Deliverefl before the General Federation of Wom- 
en's Clubs, Washington, D. C, January 18, 1940. Mr. 
Kelchner is Chief of the Division of International 
('(inferences in the Department of State. 



encouraging improvement of relations among 
the 21 republics. Wliile nations in other parts 
of the world are engaged in armed conflict, the 
republics of the New World are enjoying peace 
and are cooperating wholeheartedly in safe- 
guarding that peace and in devoting their 
energies to their mutual protection and eco- 
nomic well-being. 

In considering the significance of the Amer- 
ican organization, it is important to emphasize 
the foundations and the bases upon which that 
international structure has been built. In the 
development of an effective guarantee of inter- 
national obligations, the spirit and the motives 
of peoples are more important than the per- 
fectionj of the mechanism used. The will and 
the purjjoses of nations set the pattern for 
whatever international organization may be 
established. It is important, therefore, to con- 
sider the spirit — the bond or sense of kinship — 
wliich has prompted the establishment of the 
international organization of the Western 
Hemisphere. 

Wliile Europe is luider an order based upon 
force and fear, the Americas are organized on 
the basis of equality, solidarity, and mutual 
cooperation and respect. Conscious efforts 
and firm determination to establish a world 
order based upon those principles, together 
with a commiuiity of interests and a similarity 
of traditional and historic background, have 
led to the development of this solidarity 
among the 21 independent American nations. 
The American nations have learned that the 
sanctity of treaties and international obliga- 
tions is the cornerstone of confidence and se- 



I 



58 



DEPARTMENT OF STATE BUULETIN 



curity in their relations one with another. 
Today inter-American solidarity is a real and 
powerful force for peace and constructive in- 
ternational relations, and it is the one bright 
spot in a dismal picture of war and destruction. 

Inter-American solidarity has always been 
an ideal of the peoples of the New World. The 
ideal dates from the very days of independence 
when Simon Bolivar envisaged an America 
united as one. A community of interests born 
out of like desii-es for liberty and somewhat 
similar economic and social conditions, 
prompted cooperation among the colonists in 
their fight for independence from Euroi^ean 
domination. During the past few years and 
especially since the inauguration of the "good 
neighbor" policy by the United States, there 
have been remarkable advances in cordial 
and friendly relations among the American 
republics. 

The i^eoples of the Americas sense a very 
real bond of historic unity. The peoples who 
came to these shores represented many tongues 
and races and have been merged by coimnon 
experiences and objectives into the independ- 
ent nations of the New World. The Americas 
were founded in order that the oppressed 
might be given a chance freely to develop, 
economically, politically, socially, and cultur- 
ally. Tlie Western Hemisphere has always 
been the land of opportunity, where the ideals 
of the peoples are embodied in the principles 
of liberty, equality, and fraternity. Although 
of many origins, the peoples are united in a 
common determination to maintain and de- 
velop the American way — the self-governing 
way of life. 

The happy relations now existing among the 
21 independent nations of the New World are 
not the result of some theoretical scheme of in- 
ternational organization nor of a sudden burst 
of enthusiasm prompted by opportunism. The 
American international organization has been 
evolved by a slow, and at times uncertain, 
process over a period of many decades. It is 
a system based upon law rather than upon 
force, upon the juridical equality of every na- 
tion regardless of size or power, upon the 



scrupulous respect for the sovereign right of 
all independent nations to develop free from 
outside force or interference, and upon the 
sanctity of international obligations and the 
pledged word. 

The international organization of the 21 
American republics is unique in the society of 
nations. It is a voluntary association of sov- 
ereign governments established for the pur- 
j)ose of promoting peace, commerce, and 
friendship by the fostering of their economic, 
juridical, social, and cultural relations. This 
organization is called the Union of the Amei'i- 
can Republics, first organized on April 14, 
1890. 

The Union of the American Republics has 
been founded upon the fundamental idea of a 
community of interests of the nations of the 
New World. It recognizes and emphasizes 
the principle of the equality of nations and 
takes cognizance of a confraternity existing 
among the 21 states which is the result of 
geographic, historic, political, economic, and 
other factors. It would be difficult to find 
stronger testimony of the general solidarity of 
the republics of the Western Hemisphere than 
is provided by the fact that this inter- Ameri- 
can enterprise has existed for 50 years and has 
progressively inspired a stronger and more 
united support from the membei' nations. 

The Union of the American Republics is a 
voluntary organization not established on a 
treaty or contractual basis. It was created in 
accordance with a mere resolution adopted at 
Washington on April 14, 1890, at the First In- 
ternational Conference of American States. 
There is no semblance of the imposition of 
sanctions or coercion, and each government is 
free to withdraw from membership at any 
time. It is significant, however, that during 
the 50 years of its existence no nation has ever 
exercised that right. 

This loose organization of the American re- 
publics operates through numerous political 
and technical inter-American confei-ences, 
through a permanent international secretariat 
known as the Pan American Union, and 
through various bureaus, commissions, com- 



JANUARY 20, 1940 



59 



niittees, and other bodies. These are the 
agencies, the tangible manifestations of the 
real and vital force of the solidarity among 
the American nations. 

The activities of the various agencies are 
loosely coordinated, and none of these agen- 
cies has any power to force one nation to do 
anything which that nation considers injuri- 
ous to its own national best interests. Al- 
though these agencies may lack the power to 
make arbitrary and dramatic decisions, they 
do possess a much greater force through the 
voluntary and unanimous support extended to 
them. 

The Pan American Union is the permanent 
international secretariat established by the 
Union of the American Republics. It is an in- 
dependent, flexible, and teclmical international 
institution, having no jurisdiction over political 
questions. It acts as a clearinghouse of in- 
formation, deals with technical and cultural 
matters, and is under the control of a penna- 
nent international directorate — the Governing 
Board. The Governing Board is composed of 
one representative from each government. Each 
nation has equal representation regardless of 
economical, political, or militai*y strength, and 
there is no compromise of the principle of 
juridical equality. The Governing Board meets 
regularly each month and at such other times 
as may be necessary. It acts as the pei-manent 
council to carry out the resolutions of various 
inter-American conferences and to supervise 
the permanent secretariat. 

On April 14 of this year, the Pan American 
Union will observe its fiftieth anniversary, and 
the fact that it is privileged to celebrate this 
event in peace and friendship is a tribute to 
its effectiveness. Its growth and development 
over a period of a half century from a mere 
lonnnercial bureau under the supervision of 
une government to a great international secre- 
'rariat under the guidance and direction of the 
LTDxernments of all of the 21 republics, com- 
[ilctely independent from any one govei-nment, 
IS a tribute to the courage and the vision of the 
[leoples of the American republics. It repre- 
sents an outstanding accomplishment in the 



development of international organizations to 
foster peaceful cooperation and constructive 
economic and social expansion. 

Time will not pennit me to discuss the various 
inter- American bureaus, commissions, and other 
agencies which have been established as a part 
of the inter- American organization. The Pan 
American Sanitary Bureau, the American In- 
ternational Institute for the Protection of 
Childhood, the Inter-American Neutrality 
Committee, the various permanent committees 
for the Codification of International Law and 
the Study of Comparative Legislation, the 
Permanent Commissions of Investigation and 
Conciliation, the Inter-American Trade Mark 
Bureau, the Inter-American Commission of 
Women, the Inter-American Radio Office, the 
Pan American Institute of Geography and 
History, and the Inter- American Financial and 
Economic Advisory Committee are some of 
these organizations. The activities of some of 
these are not as closely coordinated with the 
activities of the central secretariat, the Pan 
American Union, as might seem desirable, but 
all have been established for the definite pur- 
pose of promoting cooperation in their respec- 
tive fields. They fit into the general pattern 
and each is more or less autonomous with regard 
to its own activities. 

Ijiter-American conferences occupy prob- 
ably the most important place in the inter- 
American organization. During the past 50 
years over 100 inter-American conferences 
have been held. The series of general periodic 
International Conferences of American States 
was inaugurated in Washington in 1889-90, 
and the latest was held in Lima in December 
1938. These important diplomatic conferences 
have been supplemented by scores of technical 
conferences on economic, cultural, juridical, 
commercial, and scientific subjects. These 
inter-American meetings have been instru- 
mental in bringing about a better understand- 
ing and appreciation of the problems and ac- 
complishments of the American nations. The 
personal contacts and friendships established 
at these meetings have been of inestimable 
value in the development of this era of good 



60 



DEPARTMENT OF STATE BUIXETIN 



nelghborliness among the American peoples 
and nations. 

Such, in outline, is the inter- American or- 
ganization. The machinery itself may lack 
much in perfection, but it responds to the 
needs and the desires of the 300 million people 
living in the republics of the Western 
Hemisphere. 

The international organization in the 
Americas and the continental solidarity which 
makes it possible may be regarded in two as- 
pects. It may be regarded on the one hand 
by its manifestations within the hemisphere, 
such as the nature and the manner in which 
the states conduct their international relations 
among themselves as well as the organizations 
and instrumentalities used. It may also be 
considered by the evidences outside or beyond 
the continent, including the attitude toward 
and the relations with the nations and organ- 
izations of other continents. Quite naturally 
the American nations have devoted most of 
their attention and energies to putting their 
own house in order and to the development 
and consolidation of their own international 
organization. 

Uppermost in the minds of the American 
peoples has been the preservation and main- 
tenance of the peace of the hemisphere. 
Strong is the will to peace in the Americas and 
equally strong is the determination to maintain 
it. The Americas have evolved over a period 
of years an elaborate and effective machinery 
for the settlement of political controversies 
which is separate from the Pan American 
Union. During the past 50 years over 30 in- 
ter-American disputes have beeb settled by 
peaceful methods. 

The American nations have concluded 11 
different inter-American treaties and conven- 
tions which establish investigation, mediation, 
conciliation, arbitration, and consultation as 
means for the pacific settlement of their inter- 
national differences. 

Recent examples of the peaceful settlement 
of American disputes are the Leticia contro- 
versy between Colombia and Peru, the difficul- 
ties between Haiti and the Dominican Republic, 
and the long-standing and difficult Chaco 



boundary dispute between Bolivia and Para- 
guay. 

These settlements have been made possible 
only by a strong will and determination to keep 
the peace and by a spirit of compromise and 
sacrifice on the pai-t of the disputants. Let it 
not be said that national interests and honor 
were not at stake. Sacrifice and national re- 
adjustment were required, and it is a tribute 
to thq high sense of the international respon- 
sibilities of the leaders and peoples of these 
nations that they were able to effect an ami- 
cable settlement of their differences. 

The Inter-American Conference for the 
Maintenance of Peace was held at Buenos Aires 
in 1936 upon the suggestion of President Roose- 
velt for the purpose of perfecting and imple- 
menting the inter-American treaties which 
previously had been concluded. The American 
republics, recognizing their common obligation 
to maintain peace in the New World, solemnly 
agreed at that meeting to consult with each 
other for the purpose of determining the best 
means of safeguarding peace whenever the 
peace of the Americas is menaced. This pro- 
vision for inter-American consultation offers 
a prompt and effective method of developing 
a common and unified attitude whenever a 
menace may arise either from within or with- 
out the hemisphere. Consultation by the 
Ministers of Foreign Affairs or their repre- 
sentatives, agreed upon at Buenos Aires, is an 
effective means by which the American nations 
can promptly and effectively cope with any 
emergency or crisis that might arise. The 
Buenos Aires Conference also adopted a Decla- 
ration of Principles of Inter-American Soli- 
darity and Cooperation in which they declared 
that every act susceptible of disturbing the 
peace of the Americas affects each and every 
one of them. It adopted what may be called 
a charter of the Americas for the Americans. 

The Eighth International Conference of 
American States held in Lima in 1938 took 
definite action for the first time concerning the 
relationship which should maintain between 
the nations of this hemisphere and the rest 
of the world. It met at a time when the 
European crisis was nearing the breaking 



JANUARY 20, 1940 



61 



point, and the American nations unanimously 
agreed to make a common front against any 
attempt to encroach upon the rights of the 
Americas or to subvert their institutions. 

The most significant and far-reaching ac- 
tion taken at the Eighth Conference was the 
adoption of the Declaration of Lima, affirming 
the unity of the hemisphere vis-a-vis the rest 
of the world and the following principles of 
inter- Americanism : Republican institutions, 
will to peace, tolerance, adherence to the tenets 
of international law, equal sovereignty of 
states, and individual liberty without religious 
or racial prejudices. 

The governments declared : 

"First. . . . their contiuental solidarity and 
their purpose to collaborar^ in the maintenance 
of the principles upon which the said solidar- 
ity is based. 

"Second. That faithful to the above-men- 
tioned principles and to their absolute sover- 
eignty, they reaffirm their decision to maintain 
them and to defend them against all foreign 
mtervention or activity that may threaten 
them. 

"Third. And in case the peace, security or 
territorial integrity of any American republic 
is thus threatened by acts of any nature that 
may impair them, they proclaim their common 
concern and their determination to make ef- 
fective their solidarity, coordinating their re- 
spective sovereign wills by means of the pro- 
cedure of consultation." 

This Declaration is a strong affirmation of 
the intention of the American nations to main- 
tain these principles and to defend themselves 
against foreign aggression. It proclaims that 
any attack, direct or indirect, on any one of the 
American republics is a matter of mutual con- 
cern to all of the American nations and that 
they agree to consult immediately in case the 
, peace, security, or teri-itorial integrity of any 
may be threatened. It proclaimed the essen- 
tial integrity and solidarity of the New World. 
It provided a method of coping with foreign 
aggression, but the exact measures which 
might be needed to safeguard their integrity 



were to be detemiined in each case by consulta- 
tion. 

The outbreak of the European war brought 
about a state of affairs which seriously jeop- 
ardized the national and the collective inter- 
ests of the American republics. Economic 
ti'anspoi'tation, financial and trade relations 
were interrupted or endangered over night, and 
it became apparent that thei-e had arisen an 
emergency affecting all the republics which 
was the very type of situation calling for con- 
sultation. On September 23 the Ministers of 
I'oreign Affairs or their representatives of all 
the 21 American republics met at Panama to 
seek the most effective means of guaranteeing 
their legitimate interests and of preserving the 
peace of the Americas in face of the threaten- 
ing menace. 

They assembled on equal terms to consider 
the peaceful measures that their governments 
might take individually and collectively in 
order to safeguard their neutrality ; in order to 
jjreserve so far as possible their economic and 
commercial interests from dislocation as the 
result of the outbreak of war; and in order to 
keep M-ar away from this hemisphere. 

At this consultative meeting the Ministers 
of Foreign Affairs of the 21 American repub- 
lics unanimously agreed upon the already his- 
toric Declaration of Panama. This Declara- 
tion sets forth the principle that the American 
nations as neutrals are entitled as an inherent 
right of self-protection to have the watens 
adjacent to their shores which they consider 
as of primary and direct utility in their rela- 
tions, free from the commission of hostile acts 
by any non-American belligerent. It provides 
that in case of serious infringement upon these 
rights the governments will consult to deter- 
mine such measures as may be necessary. 

This Declaration of Panama states a new 
rule of neutral security for the Americas. 
There is no provision for the use of force since 
force is wholly incompatible with the very 
spirit of the Declaration. It provides that the 
American republics will endeavor to secure 
compliance through joint representations to 
the belligerents. It also provides that the gov- 



62 



DEPARTMENT OF STATE BULLETIN 



ernnients, whenever they consider it necessary, 
will consult to determine upon the measures 
which they may individually or collectively 
undertake. This was the procedure followed 
in the recent protest to England, France, and 
Germany concerning the maritime activities 
in the South Atlantic. 

This meeting also provided for the establish- 
ment of an Inter-American Financial and 
Economic Advisory Committee consisting of 
21 experts, one from each American govern- 
ment, to consider the problems incident to the 
economic and financial dislocation brought 
about by the European war. This Committee 
was installed in Washington on November 15, 
1939, and has been actively considering various 
problems of a financial and economic character 
dealing with monetary relationships, foreign 
exchange, and trade relations. 

The Panama meeting unanimously adopted 
certain rules which they will follow in main- 
taining their rights as neutrals. It also pro- 
vided for an Inter- American Neutrality Com- 
mittee of seven expei-ts to study and coordi- 
nate neutrality problems during the present 
war. This Committee is now in session in Rio 
de Janeiro and is formulating recommenda- 
tions in the light of experience and changing 
conditions. 

The meeting of the Foreign Ministers at 
Panama was the first time that the procedure 
of consultation established by the agreements 
signed at Buenos Aires and at Lima was put 
into effect. The rapidity with which this meet- 
ing was convened, scarcely 3 weeks after the 
outbreak of hostilities in Europe, is evidence 
that the procedure of consultation in the 
Americas is an effective agency whenever an 
emergency or crisis should arise. It is heart- 
ening that the 21 American nations, through 
consultation and constant exchange of views, 
are finding themselves so firmly united for 
common action. 

The Americas in developing their organiza- 
tion have in no sense adopted a policy of 
continental isolation. The purpose is not to 
detach the continent from the community of 
nations but rather to regulate their own lives 



in a peaceful and orderly manner. They have 
given practical demonstration that collabora- 
tion of equal sovereign nations can succeed in 
establishing freedom, peace, and prosperity. 

There is nothing in this regional organiza- 
tion that is inconsistent with world organiza- 
tion. Many delicate international problems 
are local in character or limited to a small 
group of nations, and it would seem practical 
that such matters be solved by those nations 
which have a real, intimate, and vital interest 
in them. Regional organization places the re- 
sponsibility upon those nations having similar 
interests for the solution of their own peculiar 
problems. Should there be effective regional 
organizations, a world system of cooperation 
would then only be required to devote its ener- 
gies and its efforts to those universal problems 
which affect all nations. 

The question of developing some form of 
effective international organization throughout 
the world should no longer be one of national- 
ism versus internationalism. It should no 
longer be a matter of prejudice or pai'tisanship. 
After the present conflicts are over there will 
be a greater necessity than ever before to estab- 
lish some coordinated method of international 
relationship if modern civilization is to be 
preserved. 

International organization, however, will 
not alone be sufficient. The tragedy of the 
present situation is not that there is insufficient 
organization. It is that the spiritual and moral 
foundations upon which international and na- 
tional life depend are being undermined and 
disregarded. 

Fundamentally the responsibility for the 
maintenance of peace in all parts of the world 
as well as in the Western Hemisphere rests 
upon the people. Peace machinery may be 
established, wars may be outlawed, treaties 
may be solemnly entered into, but the effec- 
tiveness of such measures depends upon the 
extent to which the peojjles will work together 
to build a better world in which to live. It 
is in this great responsibility that organizations 
such as those represented here today in the 
General Federation of Women's Clubs can 
play such an important role. 



JANUARY 20, 1940 



63 



The American peoples are behind their gov- 
ernments in the employment of reason and 
justice in their international relations rather 
than the barbaric methods of another age. 
The American nations can contribute materi- 
ally to world peace by continuing to adhere to 
those cardinal democratic principles of equal- 
ity, the sanctity of treaties, respect for the 
sovereignty and independence of others, the 
conviction that mutual benefits are derived 
from cooperative efforts and that peace can 
be maintained only by sacrifice and by a posi- 



tive and constructive approach. The peoples 
of the New World, witnessing each day a 
progi-essive destruction of more and more of 
the fundamental principles of human progress, 
realize more clearly their joint responsibility 
to future generations as the trustees of mod- 
ern civilization. 

The Americas are holding out to a darkened 
world the beacon of a secure and permanent 
peace and by so doing are setting an example 
which may some day help in restoring law 
and order throughout the world. 



Commercial Policy 



STATEMENT BY ASSISTANT SECRETARY GRADY BEFORE THE 
HOUSE WAYS AND MEANS COMMITTEE ' 



(Released to the press January 17] 

;Mr. Chairman and Mejvibeks of the Com- 
mittee: The question before you is that of 
renewing for a further period of 3 years the 
authority to negotiate trade agreements with 
foreign countries which was originally con- 
ferred ujion the President by the act of June 
12, 1934, and was extended by joint resolution 
approved March 1, 1937. Unless action is 
taken by Congress to extend further the tei'm 
of this authority, it will expire on June 12, 
1940. It, therefore, becomes the responsibility 
of Congress to decide whether to allow this 
authority to terminate, or whether to continue 
to place upon the executive branch of the Gov- 
ernment the responsibility for dealing with 
the urgent, difficult, and important problems 
of our trade relations with foreign countries 
by tliis means. My purpose in appearing 
before you is to place myself at your service, 
in the desire to provide you with the fullest 
' information to aid you in the discharge of your 
present responsibility. 



■ Delivered January 17, 1940, in tlie course of hear- 
iir^s on H. J. Res. 407, to extend the authority of the 
J'lt'sident to enter into foreign trade agreements under 
sp lion 350 of the Tariff Act of 1930, as amended. 



In liis statement before you last Thursday," 
the Secretary of State set the broader aspects 
of the trade-agreements program before you, 
so that you might view the situation in fuU 
and true perspective. I shall endeavor to pro- 
vide you with more detailed information 
regarding the various important aspects of this 
subject. I believe that I can best be of service 
to you by answering such questions as you may 
have, after first reviewing some of the salient 
points. 

This is not the first time that this issue has 
been before you. Twice before in recent years 
you have had occasion to consider it: in 1934, 
when the President originally recommended 
the enactment of this authority, and in 1937 
when you had before you, as you have today, 
the question of its continuance. The exhaus- 
tive and thorough consideration you gave to 
the subject, the full record of your earlier 
hearings, the comprehensive and accurate 
review of all essential phases of the subject in 
the reports of your Committee to the House 
of Representatives, provide an appropriate and 



«See the Bullet iti of January 13, 1940 (Vol. II, No 
29), pp. 29-38. 



64 



DEPARTMENT OF STATE BULLETIN 



useful point of departure for your present 
review of the subject. 

The purpose of the Trade Agreements Act is 
to contribute to the national economic welfare 
by reestablishing conditions favorable to a 
sound and profitable expansion of our foreign 
trade. It is to be emphasized that the objective 
is an increase in economic actiA'ity to the com- 
mon benefit of all concerned. 

The foreign trade of the United States is a 
vast and intricate business, closely interwoven 
into the whole web of our entire national eco- 
nomic activity. I present herewith a chart 
which shows how our trade, both imports and 
exports, consists of products ranging through 
all economic classes, from primary raw mate- 
rials to fully manufactured products. 

[Exhibit : Chart, of United States Trade With 
All Countries, by Economic Classes, 1929, 1937, 
1938] 

It is of some interest to note that in 1938, as 
in 1929, about one-half of our exports consisted 
of fully manufactured products representing a 
fair cross-section of American industry. This 
demonstrates the fact that a great many of our 
industries, despite high wage levels and shorter 
working hours, are able to compete successfully 
in world markets, where they do not have the 
protection of the American tariff. 

The administration of this program is based 
upon an organization equipped to assemble and 
consider information regarding all of the thou- 
sands of diverse products of which this trade is 
composed. This is accomplished by means of 
a wide and close-knit interdepartmental or- 
ganization, through which the efficient and con- 
tinuous cooperation of the five Government 
agencies primarily concerned with our foreign 
trade is brought to bear upon the problems in- 
volved in carrying out the Trade Agreements 
Act. 

The procedure followed is that of negotiating 
trade agreements with individual foreign coun- 
tries for the reciprocal reduction of excessive 
trade barriers and the removal of discrimina- 
tions. There has been much misunderstanding 
of the significance of the policy of uncondi- 
tional most-favored-nation treatment, which 



is in actual fact simply the basic principle of 
equal treatment. By adapting the traditional 
most-favored-nation policy to the new circum- 
.stances wliich the trade and exchange CMitrols 
of recent years impose upon our foreign trade, 
the recijarocal trade agreements have been pro- 
viding a widening area of equality of treat- 
ment and have been building a structure of 
economic sanity and cooperation in strong con- 
trast to the conflict and discord which darkens 
so much of the international scene. 

Because our method is the negotiation of 
bilateral agreements with individual countries, 
the mistaken view is often held that the bene- 
fits provided by tliese agreements should not 
be generalized to other countries, but should 
be restricted to the trade between ourselves 
and the country with which each agreement is 
negotiated. This policj' would involve the ap- 
plication of discriminations which would pro- 
voke retaliations, and would draw us into the 
trade-restricting policies followed by those 
governments wliich seek to balance their im- 
ports and exports with individual countries. 
What such a policy of bilateral balancing 
would mean to the trade of the United States 
is graphically suggested by this chart, which 
shows our exports to and imports from the 20 
countries which were our chief foreign markets 
in 1938. 

[Exhibit: Chart of Our Chief Markets and 
Suppliers in 1938] 

With 16 of these 20 countries, our exports 
exceed our imports. A bilateral balancing of 
our trade with these countries, such as is im- 
plied in the common notions regarding barter 
agreements, would mean either a larger in- 
crease in our imjDorts or, what would more 
probably be the result, a severe decline in our 
exports to most of these countries, and espe- 
cially to those M'hicli are the outstanding mar- 
kets for our surplus farm products. 

When your Committee held its hearings in 
January 1937, 15 reciprocal trade agreements 
had been concluded with as many foreign coun- 
tries. Seven additional trade agreements con- 
cluded since then bring the total to 22 agree- 
ments, not including 2 very recent supplemen- 



JANUARY 2 0, 1940 

till agreements with Canada and Cuba. I 
would like to submit for the record at this 
point the Trade Agreements Calendar, which 
lists the agreements now in effect. 

[Exhibit: Trade- Agreements Calendar] 

The most important of tlie 7 trade agree- 
ments concluded since 1937 is that with the 
Government of the United Kingdom, covering 
our trade with the United Kingdom, New- 
foundland, and the British Colonial Empire. 
This agreement was negotiated concurrently 
with a new agreement with Canada. The 
other agreements concluded since your Com- 
mittee's hearings in January 1937 are those 
with the Governments of Ecuador, El Salva- 
dor, Venezuela, Czechoslovakia, and Tui'kcy. 
The operation of the agreement with Czecho- 
slovakia was suspended in April 19.39 for rea- 
sons too well known to requii'e mention here. 

The 15 agreements concluded and in effect in 
Januaiy 1937 were with countries accounting, 
CM the basis of statistics for 1934, for 37.7 per- 
cent of our foreign trade. The 19 countries 
with which trade agreements are today in ef- 
fect account for 57.5 percent of our foreign 
trade on the basis of statistics for the same 
J ear, and for about 60 percent of our foreign 
trade at this time. 

In 1937 your Committee, in its report on the 
extension of the authority to negotiate trade 
iigreements, took note of certain alarmist ref- 
erences which had been made to the decline in 
our excess of exports over imports. Your 
Committee pointed out that thei'e was no cause 
for alarm in this development, and stated : 

"What the Committee desires to stress as of 
paramount importance is the fact that trade 
in both directions has expanded greatly in 
1936 — in fact, by more than a half billion dol- 
lars." (75th Cong., 1st sess.. House of Kepre- 
sentatives. Committee on Ways and Means, Re- 
port No. 166, Feb. 1, 1937, p. 7) 

Since 1936, our exports have continued to 
maintain a level above that of preceding years. 
They rose from 2,456 millions of dollars in 1936 
to 3,349 millions in 1937. Despite the decline 
in our domestic activity beginning in the latter 



65 



part of 1937, our exports maintained a value of 
3,094 millions of dollars for 1938; for the year 
1939 the estimate of the Department of Com- 
merce is 3,100 millions of dollars. Our mer- 
chandise imports have shown a more fluctuat- 
ing course: from 2,423 millions of dollars in 
1936 they rose to 3,084 millions in 1937 and de- 
clined to 1.960 millions in 1938. For 1939 the 
Department of Commerce estimates the total 
of our imports at 2,300 millions of dollars. 

In its report of February 1, 1937, your Com- 
mittee noted a more rapid increase of exports 
to countries with which trade agreements were 
in force than to others. (75th Cong., 1st sess., 
House of Representatives, Committee on Ways 
and Means, Report No. 166, Feb. 1, 1937, p. 5) 
With the negotiation and coming into force 
of additional ti'ade agreements since then, this 
tendency has continued and affords definite 
evidence of the influence of these trade agi-ee- 
ments, among the many other factors which 
determine the course and size of our trade, 
toward a restoration f)f our foreign markets. 
The chart submitted herewith for incorpora- 
tion in the record shows clearly this general 
trend. 

[Exhibit : Increase in United States Exports 
and Imports, 1938-39 over 193't-3o] 

Of course it is not to be assumed that in 
every instance our trade with a trade-agree- 
ment country has increased more rapidly than 
our trade with every nonagreement country. 
What is significant, however, is the general 
but very evident confirmation of the natural 
expectation that the reduction of trade bar- 
riers effected by trade agreements would stim- 
ulate our trade. You will note that this com- 
parison between the periods 1934-35 and 1938- 
39, shows a 50-percent increase in exports to 
trade-agreement counti'ies as compared with 
a 28.3-percent increase to other countries, and 
a 17.8-percent increase in imports from trade- 
agi-eement countries as compared with an 
11.3-percent inci-ease in imports from other 
countries. 

A few words may be in order here with re- 
gard to our export balance and the problem 
of obtaining payment for our exports. In 



I 



66 



DEPARTMENT OF STATE BULLETIN 



1937 your Committee commented upon a de- 
cline in our export balance. Today we find 
the opposite — an excess of exports of very 
large proportions. I submit a table which 
shows, for each year since 1913, our balances 
of merchandise trade and of exports and im- 
ports of gold and silver. 

{Exhibit: United States Balance of Mer- 
chandise Trade and of Gold and Silver] 

The heavy export balances of the years 1915 
to 1919 accompanied, it will be remembered, 
ai change in our position from debtor to cred- 
itor on international account. The large ex- 
port balances in most of the years from 1924 
to 1930 were recorded during a period of heavy 
and indiscriminate lending to foreign coun- 
tries. The more recent increase in our export 
balance from the low point in 1936 has accom- 
panied an immense increase in our net imports 
of gold, which reached nearly 2 billions of dol- 
lars in 1938 and exceeded 3 billions in 1939. 

Since 1914 we have learned a great deal 
about our dealings with the rest of the world 
in commodities, shipping, travel, credit and 
capital, and other items which go to make up 
our balance of international payments. The 
heavy inflow of gold in recent years is of 
course related to other factors besides our com- 
modity balance, but for 1938 and 1939 the re- 
lation of our commodity balance to our gold 
imports appears particularly close. In the 
last 2 years, during which our net gold im- 
ports (not including earmarked gold) were 
well over 4iA billions of dollars, the sale of our 
products and sei-vices abroad has exceeded by 
at least 2 billion dollars the income of for- 
eign countries from products and services de- 
livered to us, that is, their ability to repay out 
of their current business with us. 

I would like to call your attention to this 
table, which shows the comparative size of the 
net debit and credit items in our balance of 
payments for 1938. The debit items, of 
course, represent transactions which resulted in 
dollar payments to us from abroad, and the 
credit items those which involved dollar pay- 
ments from us to the rest of the world. The 
degree to which our commodity export balance 



and our gold imports were the outstanding 
debit and credit items, respectively, is clearly 
shown. 

{Exhibit: Balance of International Pay- 
ments of the United States, 1938] 

The entire course of events subsequent to 
1937 has seiTed only to reemphasize the accu- 
racy and significance of your Committee's con- 
clusions, as expressed in your report of Feb- 
ruary 1, 1937, to the House of Representatives, 
in which you stated : 

"Our net creditor position and our desire to 
maintain and expand our export trade, render 
desirable and necessary a growing volume of 
imports, provided only that they do not dis- 
rupt and dislocate domestic industries but, 
rather, contribute to a rising prosperity in 
which all branches of our economic life may 
share. The caution with which the trade- 
agreements program has been administered in 
this latter regard; the higher levels of prices 
and prosperity in the very industries in which 
duties have been reduced, as well as in others ; 
and the nature of the increased imports as in- 
dicated by the foregoing analysis — all attest to 
the fact that the adjustments that have been 
taking place are fundamentally in the eco- 
nomic interest of the country as a whole." 
(75th Cong., 1st sess.. House of Representatives, 
Committee on Ways and Means, Report No. 
166, Feb. 1, 1937, p. 7) 

The outbreak of war has, of course, accen- 
tuated the strain upon foreign currencies. 
Temporarily, foreign purchasers give war 
planes priority over apples — to paraphrase 
Herr Goering — but there continues to exist a 
large and ui*gent need for our lard, fruit, 
machinery, and other products. The scarcity 
of dollar exchange constitutes the chief obstacle 
in the task of restoring and preserving our 
export markets for our basic industries. The 
only healthy solution is an all-around expan- 
sion of the exchange of our own goods and 
services for foreign goods and services. It 
was the failure to face this key problem that 
dislocated trade, created trade and exchange 
restrictions, caused economic distress, and, in 



JANUARY 20, 1940 

swift and disastrous succession, has brought 
about extreme nationalism, autarchy, aggres- 
sion, and war. 

It seems hardly necessai-y to recall the clear 
warnings in which Secretary Hull repeatedly 
pointed out the catastrophic effects of short- 
sighted selfishness in the trade practices of 
nations, including our own. The lessons that 
prosperity cannot be attained by economic iso- 
lation, that exports cannot be independent of 
imports, and that peace cannot be preserved 
without enlightened self-interest in the intelli- 
gent solution of world economic issues is a 
daily theme on the front page of every news- 
paper in the country. 

The outbreak of warfare in Europe has 
brought to the fore one aspect of our trade- 
agreement relations with foreign countries 
which has been the subject of sufficient mis- 
understanding to warrant some comment here. 

Several of the governments with which we 
liave concluded agreements, being now in a 
state of war to which we fortunately are not 
!i party, have taken emergency action Avhich 
they deemed to be necessary for the preserva- 
tion of their vital interests. It is, of course, 
incumbent upon these governments to endeavor 
to limit action affecting our trade to the 
measures necessary to meet their emergency. 
We are, of course, following their actions with 
close attention, with a view to being prepared 
to take all appropriate and justified steps. 

There are some people who claim that the 
t'll'ect of this situation has been to give the 
other government a free hand while leaving 
us unilaterally bound to the terms of our 
agreement without obtaining its benefits. I 
may remark that those who make this argu- 
ment are generally to be found among those 
who were never in favor of the conclusion of 
these agreements in the first place. 

^bnong the things these people overlook is 
the fact that the concessions we granted in 
these agreements were made only after pains- 
taking study and consideration of the real 
needs of the domestic producers concerned. 
The events which have resulted in the taking 
of emergency action by the other governments 
have not in general made these concessions any 



67 



less justified insofar as the real needs of our 
domestic producers for tariff protection are 
concerned. In many cases the opposite is 
more likely to be true. 

On the other hand, if these concessions were 
not in effect, if higher tariff rates impeded our 
continuing purchases from the countries whose 
governments have taken these emergency meas- 
ui-es, the effect would be to aggravate the prob- 
lem facing those American interests, be they 
exporters of apples, or tobacco, or any other 
product, whose sales abroad are affected by the 
emergency measures. For the result of further 
diminished imports from these countries would 
be a further reduction of such surplus of dol- 
lar exchange as these countries may have avail- 
able for the purchase of our ordinary products, 
after their emergency needs are satisfied. 



There are, as the Committee has been aware, 
a number of outstanding aspects of this pro- 
gram which have been and continue to be the 
subject of controversy. I believe it will save 
the time of the Committee if I discuss them 
very briefly at this time. 

CONSTITDTIONALITT OF THE TrADE 

Agreements Act 

The first subject that I want to mention is 
the question of the constitutionality of the 
Trade Agreements Act. As the Committee will 
remember, this subject was gone into at length 
at the time of the original enactment of the 
Trade Agreements Act in 1934 and again in 
1937 when the act was renewed. I do not want 
to weary the Committee with a repetition of all 
the arguments that were presented on those 
two earlier occasions. They were, of course, 
printed in full in the testimony before this 
Committee. (Extending Reciprocal Foreign 
Trade Agreements Act — Hearings before the 
Committee on Ways and Means, House of Rep- 
resentatives, 75th Cong., 1st sess., Jan. 22, 1937, 
pp. 138-143) 

I will simply say first, that the act was care- 
fully drafted with a view to bringing it within 
recognized constitutional principles; second, 
that on both occasions when the matter was up 



68 



DEPARTMENT OF STATE BULLETIK 



for congressional consideration Congress gave 
careful study to the question and concluded 
that there were ample precedents for such legis- 
lation; and, finally, that while we realize, of 
course, that there are some in Congress and 
outside who are honestly of the opinion that 
the act is unconstitutional, we are wholly con- 
fident on the basis of the ample precedents 
which have been established that the act is 
entirely constitutional. 

I should like to offer for the record at this 
point a recent article on the subject by the Hon- 
orable Francis B. Sayre, former Assistant Sec- 
retary of State, which appeared in the Colum- 
hia Law Review. ("The Constitutionality of 
the Trade Agi-eements Act," by Francis B. 
Sayre, Columbia Law Review, May 1939, Vol. 
XXXIX, No. 5, pp. 751-775) 

[Exhibit: Article from Columbia Law Re- 
view] 

Democratic Character of Trade-Agreement 
Procedure 

Apart from the question of constitutionality 
of the act, however, it is still pertinent to ask 
whether the delegation of authority to the 
Executive in the Trade Agreements Act and 
the mamaer in which it has been administered, 
are wholly in accord with^ democratic prin- 
ciples. In other words is the procedure in 
harmony with the spirit of our democratic in- 
stitutions? 

First of all I should like to say that in my 
opinion if the Congress had not felt on the two 
previous occasions when this matter came up 
that the Trade Agreements Act was in accord 
with the fundamental principles of democracy 
and Americanism, then it would surely never 
have passed the act in the first place and re- 
newed it in 1937. Nor, in my opinion, is there 
any question that it was correct in the view 
that it is in accord with these principles. 

What, in essence, does this act do with regard 
to the delegation of authority? It lays down 
certain standards for the guidance of the Ex- 
ecutive in attempting, through negotiations 
with foreign coiuitries, to bring about a mutual 
reduction of trade barriers. Havmg set up 



these definite standards of performance, it 
leaves to the Executive the detailed and highly 
technical job of adjusting actual rates of tariff 
duty on hundreds of items in accordance with 
the broad requirements of the law, all for the 
purpose of attaining certain definite objectives 
laid down in the law. 

Moreover, the act requires public notice and 
an opportunity for all interested persons to 
present their views in connection with each 
projiosed agreement. Furthermore, it requires 
consultation, before an agreement is concluded, 
with those agencies of the Federal Government 
which have long dealt with various aspects of 
our foreign trade. 

The procedure adopted in the administration 
of the act, with a view to giving the most com- 
plete effectiveness to these standards and safe- 
guards, was described in detail in testimony 
submitted to your Committee in 1937 and pub- 
lished in the record of your hearings. (Ex- 
tending Eeciprocal Foreign Trade Agreement 
Act — Hearings before the Committee on Ways 
and Means, House of Representatives, 75th 
Cong., 1st sess., Jan. 22, 1937, pp. 127-134) 
The additional steps in procedure which had 
been recently adopted at the time of your 
earlier hearings, as described in the testimony 
above referred to — namely, the public listing 
of products on which concessions may be 
granted and the extension of the functions of 
llie Committee for Reciprocity Information — 
have proved successful in ojDeration and useful, 
and they have been continued. 

The Senate Finance Committee in 1937 
reached the conclusion that the act "wisely 
combined the very features of our legislative 
procedure which assure democratic regard for 
individual interests with rhe only method by 
which the legislature can insure the effective 
carrying out of its policies." (United States 
Senate, Committee on Finance, 75th Cong., 1st 
sess.. Report No. Ill, Feb. 19, 1937, p. 4) 

Surely this procedure is clearly democratic 
and fundamentally sound. As the problems 
of Government have become more and more 
complex, there has been a tendency in all demo- 
ci-atic governments, including our own, for 
legislatures to concentrate their attention in- 



JANUARY 20, 1940 



69 



creasingly upon the determination of policy 
under broad rules of guidance for its execution, 
while leaving to the executive agencies the 
highly complex and technical details of admin- 
istration. This is what Congress has done in 
the present act. 

Senate Ratification 

Contrast this from the standpoint of democ- 
racy and Americanism with the old logrolling 
methods of tariff making. If the old logroll- 
ing methods of tariff making have proved an 
admitted faihu-e, what are we to say about the 
proposal advanced in some quarters that all 
trade agreements should be subject to Senate 
ratification? 

The fact of the matter is that this method 
has already been tried and found wanting. As 
was made clear in the testimony before this 
Committee in 1934 and in 1937 (Extending 
Reciprocal Foreign Trade Agreements Act — 
Hearings before the Committee on Ways and 
Means, 75th Cong., 1st sess., Jan. 22, 1937, pp. 
124-127), this country went through a number 
of sad experiences in its past history with this 
method of trade negotiation. The upshot of 
our experience was that the agreements nego- 
tiated subject to such approval were practi- 
eally never ratified. 

Here are the facts: In the whole history of 
this country there wei'e only three reciprocity 
treaties which secured congressional approval, 
namely, those with Canada in 1854, Hawaii in 
1875, and Cuba in 1902. All three of these 
cases involved countries with which we had 
close geographic or political ties. On the 
other hand there were negotiated, imder either 
general or specific authority, about 22 reciproc- 
ity treaties subject to congressional approval, 
and of these not a single one became effective. 

In contrast to this record, prior to the en- 
actment of the Trade Agreements Act, some 26 
agreements were negotiated and made effective 
under statutes which called for no congres- 
sional approval. To this total must be added 
the 22 agreements (and 2 additional supple- 
mental agreements) which have been negoti- 



ated and became effective under the present 
Trade Agreements Act. 

I should like to submit for the record a 
memorandum recently prepared in the Depart- 
ment which goes more fully into this subject. 

[Exhibit: Memorandum entitled "Senate 
Ratification of Trade Agreements"] 

One sometimes hears it said that the require- 
ment of legislative ratification is one that pre- 
vails in most foreign countries and that a dem- 
ocratic country like our own should surely 
require no less. 

The facts are, however, that most of the 
countries which require such ratification are 
able to put the agreements immediately into 
effect, subject to later ratification; and this 
subsequent ratification is itself largely a mat- 
ter of form. For example, take the case of 
the United Kingdom. Agreements negotiated 
by the United Kingdom are, it is true, subject 
to ratification by Parliament. But under the 
parliamentary form of government, where the 
Cabinet members are themselves leaders of the 
majority in Parliament, on issues of this sort 
where the continuance of the Ministry in office 
is at stake ratification largely follows as a 
matter of course. 

It must also not be forgotten that if a pro- 
gram for the reduction of trade barriers by 
reciprocal negotiations is to be effective, it 
must allow for the prompt entry into effect of 
the agreements when they are concluded. A 
process which would require many months, if 
not years, after agreement is reached with an- 
other government before the terms of that 
agreement can become operative would not 
only subject the benefits to ourselves from such 
agreements to undue delay, but would seriously 
diminish the interest of the other government 
in entering into the extensive and detailed 
negotiations necessary to reach agreement in 
the first place. 

I am not raising here any question as to 
whether the control of fundamental tariff 
policy should remain in the hands of Congress. 
There cannot be any question as to that. The 
very fact that it is necessary to come to Con- 
gress from time to time to secure renewal of 



70 



DEPARTMENT OF STATE BXILLETIN 



the act, on the basis of the careful limitations 
of authority laid down by the Congress, is it- 
self evidence that the fundamental tariff- 
making power continues, as always, to reside 
with Congress. What I am now saying is, 
that to require Senate ratification of trade 
agreements would be not merely a check on 
the authority to be exercised by the Executive, 
but a complete blackout. Let there be no mis- 
understanding on this score, and no mincing 
of words: ratification is tantamount to repeal. 

The Cost-of-Prodtjction FokmOTjA 

There are some, including persons prominent 
in public affairs, who share the general aver- 
sion to a return to the old logrolling tariff 
process in Congress but who would neverthe- 
less prefer another form of tariff adjustment 
by executive action, in place of the method 
laid down in the Trade Agreements Act. I 
refer to the advocacy of tariff adjustments by 
unilateral action under the rule of differences 
in cost of production at home and abroad. 
This device has been so fully discussed in re- 
cent years that I shall content myself merely 
with reminding the Committee of the salient 
objections to it. 

First let me point out that any policy in- 
volving adjustments in our own tariffs alone 
would disregard entirely a factor of vital im- 
portance to our foreign trade, namely, the 
trade restrictions imposed by other countries 
which have so seriously cut down the oppor- 
tunities for the sale of our export surpluses. 
Under the Trade Agreements Act any adjust- 
ments downward in our tariff are made con- 
ditional upon similar action by foreign 
countries. 

With reference to the cost formula as a device 
for tariff adjustment by executive action, I 
believe I may safely say that no competent 
authority or expert in this field could be found 
who would indorse it as an exclusive criterion 
for this purpose. 

In the first place, it is unsound as a policy. 
As pointed out by the former Chairman of the 
Tariff Commission, the Honorable Robert 



Lincoln O'Brien, in his testimony before the 
Senate Finance Committee in 1934 : 

". . . The notion that tariffs between coun- 
tries should rest upon differences in cost of pro- 
duction, even if omniscience should give us the 
power to determine them, is all wrong. The 
tariff is a question of national policy; on some 
things, you ought to have a tariff greater than 
the difference in the cost of production; other 
things, less than the difference in cost of pro- 
duction." (Reciprocal Trade Agreements, 
Hearings before the Committee on Finance, 
United States Senate, 73d Cong., 2d sess., Apr. 
27, 1934, pp. 143-144) 

But even if it were a sound criterion in 
theory — which it is not — it is utterly impossible 
in practice to apply this formula as the sole 
basis for tariff adjustment. Cost data ade- 
quate for this purpose can rarely be obtained: 
experience has shown that the attempt to obtain 
cost data from foreign producers is apt to 
arouse great resentment abroad against the 
United States. Even in cases where full data 
are obtainable, a wide variation of costs as 
among different producers is likely to exist. 
Moreover, even in such cases the process of 
calculation involves so many variables that 
the cost rule as an exact criterion becomes 
purely fictitious. On the basis of the same 
data different persons are likely to get different 
results in harmony with tlieir respective tariff 
philosophies. 

The late Thomas Walker Page, for many 
years Vice Chairman of the Tariff Commission, 
and a world authority on the tariff, condemned 
the formula unreservedly in his book on tariff 
making, published by the Brookings Institu- 
tion. He states that, "To use as the basis of a 
general tariff act a thing so fleeting, evasive, 
and shadowy would be neither right nor pos- 
sible." (Thomas Walker Page, Making the 
Tariff in the United States, Washington, D. C, 
The Brookings Institution, 1930, p. 99) 

It is of course true that reliable cost data 
should be taken into full account, to the extent 
that they are obtainable. In the work of ad- 
ministering the trade-agreements pi'ogram, 



JAiriTARY 20, 1940 



71 



with the able assistance of the expert and 
trained personnel of the Tariff Commission, 
costs are taken into account. But other factors 
must all be given due weight in reaching con- 
clusions, including the relation of imports of 
a particular product to domestic production 
and exports of the same product, the extent of 
domestic resources and capital investment, the 
height of the existing tariff rate and the extent 
to which it is effective, the possibility that 
domestic production of a precisely similar 
product is negligible, or that imports, because 
of the location of the industry or of the domes- 
tic markets or for other reasons can never sup- 
ply more than a small pej'centage of our 
consumption. 

As the sole basis for tariff adjustment the 
cost rule is unsound in theory and inapplicable 
in practice. Recently, in a letter to Senator 
Vandenberg, Secretary Hull had occasion to go 
into this matter in some detail, and I should 
like to offer the Secretary's letter for the record 
lit this point. 

[Exhibit: Letter from the Secretary of State 
to Senator Arthur H. Vandenberg, Dec. 15, 
1939] 

The method of tariff" adjustment that is re- 
quired in the present emergency in our foreign 
trade and in world trade is one that will enable 
us to reopen the channels of trade by reducing 
excessive barriers to trade and inducing other 
countries to do likewise. That is precisely 
wliat the trade-agreement method does, and 
precisely what tariff adjustment by the cost 
formula would not do. 

In 1937, when the Trade Agreements Act 
was up for renewal, your Committee exam- 
ined this whole matter carefully; and I would 
like to remind the Committee that what I have 
been saying is in direct line with the conclu- 
sions reached by the Committee in its report 
to the House at that time, from which I would 
like to quote as follows: 

"Quite apart from basic objections as to the 
principle involved, concerning which these 
critics are wholly in accord, there is complete 
agreement among them that the formula is 
wholly incapable of scientific administration. 



Complete data can seldom be obtained, es- 
pecially in foreign countries, and when 
obtained are frequently of little value. Of 
agricultural products the costs tend to fluctu- 
ate widely from year to year with the vicissi- 
tudes of the weather. Joint products and by- 
products offer a wide latitude for the vagaries 
of the cost accountants. In any country the 
costs are likely to be as numerous as the pro- 
ducers of the item. There is no such thing as 
'the' cost. Such variables as these, and others, 
reduce to complete absurdity the notion that 
this formula, which has all the outward aspects 
of a definite standard, is, in fact, any standard 
at all. These limitations of the formula fur- 
ther reinforce the committee's view that it 
would be unwise and impracticable to incor- 
porate it into the Trade Agreements Act." 
(House of Representatives, Committee on 
Ways and Means, 75th Cong., 1st sess., Report 
Xo. 166, Feb. 1, 1937, p. 13) 

The Most-Favored-Nation Policy 

There is one aspect of the trade-agreements 
program which has been the subject of consid- 
erable confusion and misunderstanding, and 
that is the most-favored-nation jDolicy. Conse- 
quently, I would like to take this occasion again 
to emphasize why this is the only sensible and 
practicable policy for this country to pursue. 

Let me first mention the broader aspects. A 
policy of discriminatory treatment leads to re- 
taliation, trade wars, and general anarchy in 
international commercial relations. On the 
other hand, a policy of equality of treatment is 
conducive to orderly and amicable international 
relations and to the expansion of international 
trade. 

Vital as these broad considerations of na- 
tional policy are, there will be some, I am sure, 
who will say that these general considerations 
are all very well but how does the most-favored- 
nation policy stand up as a straight trading 
proposition — the kind that the hard-headed 
American businessman would adopt? What 
does it mean in plain dollars and cents advan- 
tage for this country? 



72 



DEPARTMENT OF STATE BUllETIN 



I submit that any hard-headed American 
businessman possessed of all the facts would 
find that sound business judgment would per- 
mit the adoption of no other policy. Let me 
illustrate. 

In each of our trade agreements we include 
the most-favored-nation clause in its uncondi- 
tional form. Why? Because if we did not, the 
duty and other concessions we obtain from the 
other foreign countries concerned would not be 
worth the paper they are written on. Suppose, 
for example, we obtain in an agreement a re- 
duction in a foreign country's duty on, say, 
lard from 50 percent to 25 percent. If after 
our agreement is concluded the foreign country 
should make an agreement with a third country, 
and reduce the rate to 10 percent, while we con- 
tinue to pay our contractual rate of 25 per- 
cent, the value of the concession to us is 
destroyed because our competitors will take the 
market. The most-favored-nation clause pre- 
vents this. It would require that the 10-percent 
rate should be immediately extended to us. The 
clause thus prevents the concessions we obtain 
from being undermined by greater concessions 
being extended to our competitors and withheld 
from us. 

Moreover, the clause immediately obtains for 
us all of the lower rates previously applied to 
imports from our competitors. For example, 
in the trade agi'eement with France, we re- 
ceived a pledge of most-favored-nation treat- 
ment which protracted negotiations in the years 
preceding the adoption of the trade-agreements 
program had failed to obtain for us. As a 
result of this pledge we immediately obtained 
more favorable tariff treatment with respect to 
more than four thousand French tariff items, 
in addition to the numerous tariff and quota 
concessions in favor of American products 
which were specifically included in the agree- 
ment. 

Under our first trade agreement with Can- 
ada we obtained under the most-favored-na- 
tion clause, in addition to the many concessions 
specifically provided for, lower duties in re- 
spect of American products covered by about 
six hundred items of the Canadian tariff, rep- 



resenting about 30 percent of our exports to 
Canada. This advantage has of course been 
continued under the second agi-eement. 

Is it not obvious, therefore, that the inclu- 
sion of the most-favored-nation clause in our 
trade agreements is nothing in the world but 
plain, ordinary sound business sense? 

But what of the idea of extending duty 
reductions made in an agreement with one 
country to other countries generally. It is 
sometimes asserted that this means giving 
something for nothing. There is only one 
trouble with such assertions : they are not true. 
In fact we get a good deal more than we give. 

Let me make clear the basis for this state- 
ment. In the first place our policy as laid 
down in the Trade Agreements Act is to ex- 
tend duty reductions made imder our trade 
agreements to countries which on their part 
do not discriminate against us. For example, 
to countries which extend to our products the 
benefit of concessions which they make in 
their agreements with third countries. In 
other words, our minimum tariff rates are 
extended to countries which in turn extend 
their minimum tariff' rates to us. Can anyone 
duppose that if the duty reductions made in 
our trade agreements were not extended to a 
third country, that country would nevertheless 
out of the goodness of its heart extend to us 
its minimum tariff rates? The question an- 
swers iteself. 

Would it be sound business judgment to 
make an agreement which would improve our 
trade with one country, and then, by refusing 
to generalize these rates, subject our trade with 
numerous other countries to discriminatory 
treatment? Would it be good business to pur- 
sue a policy which resulted in a gain to our 
trade with a country but which would cause 
serious trade losses with all the rest of the 
countries in the alphabet? I think not, and I 
think any hard-headed Yankee trader who had 
the full situation before him would agree 
with me. 

In brief, the most-favored-nation policy 
definitely is not an altruistic one. It is a sound 
practical business proposition. 



JANUARY 20, 1940 



73 



Trade Agreements Beneficial to the 
American Farmer 

There has been widespread interest in the 
relationship of the trade-agreements program 
to the welfare of American agriculture. This 
has been so thoroughly and fully discussed 
that I do not desire to prolong the discussion, 
especially since the Secretary of Agriculture 
himself has testified before you on the subject 
only last Friday. This subject is so important, 
however, that I would not be able to consider 
my statement complete without touching at 
least very briefly upon it. 

Despite the claims made in various quarters 
that the program has been hurtful to the in- 
terests of the American farmer, the evidence 
shows positively, upon the basis of any calm, 
unbiased study of the whole fundamental 
problem of agriculture's interest in foreign 
trade and of the facts concerning the trade 
a<;reements which have been negotiated, that 
precisely the contrary is true. The program 
has helped, not hurt, the American farmer. 

Wliere the contrary opinion is held, it is 
usually argued under the slogan "the Ameri- 
can Market for the American F'armer." I 
would like to point out that, for all practical 
jiurposes, the American farmer has the Ameri- 
cin market. This is clearly evident from these 
charts to which I would like to call your atten- 
tion, charts which have been prepared in the 
Department of Agriculture. Here is a chart 
which shows how small are our agricultural 
imports compared with the share of our con- 
sumption of farai products supplied from 
domestic production. 

{Exhibit: Chart — "The American Farmer 
Has His Home Market"] 

The same is shown even more emphatically 
if we look at the facts bearing on important 
individual products — beef, dairy products, 
corn, lard. 

[Exhibit!^: Charts — "The American Beef 
Producer Has His Home Market"; "The Amer- 
ican Dairyman Has His Home Market"; "The 
American Corn Producer Has His Home Mar- 



ket"; "The American Pork Producer Has His 
Home Market"] 

I would like to ask that these charts, in the 
form in which they have been published by the 
Department of Agriculture, together with the 
statistical and textual material published with 
them, be included as part of the record of 
these hearings. 

A great deal of the argument tliat the fanner 
has been injured by the trade-agreements pro- 
gram rests upon statistics which appear to in- 
dicate heavy increases in imports of competitive 
products. I would therefore like to call to 
your attention one example of a statistical pres- 
entation of this nature and of the more sig- 
nificant statistics it ignores. I call your at- 
tention to this table, showing what appears to 
be an enornious increase in imports of lard 
since the Trade Agreements Act was passed. 

[Exhibit: "Lard, Domestic Production, Im- 
ports, Exports"] 

When these statistics are used to illustrate 
the injury the program has done to the Amer- 
ican farmer, it is of course not mentioned that 
there has been no change, by any trade agi'ee- 
ment, in our import duty on lard. 

I now call your attention to the domestic 
production of lard in the same years. Obvi- 
ously, the imports, even at their heiglit, were 
infinitesimal compared to our home production, 
and equally obviously, the imports increased 
when domestic production was unusually low. 
Some of us remember that theie were 2 years 
of drought during this period. 

Now look at the exports. Even in the years 
cf lowest production and lowest exports, our 
sales of lard abroad vastly exceeded the small 
trickle of imports which, taken by themselves, 
are used to give such a false impression of the 
real facts. 

Few instances are as clear-cut as this, but 
this example brings out clearly the nature of 
the card-stacking statistical devices to which 
resort is had to support the false contention 
that the American farmer has been injured by 
the trade-agreements program. 

I will not go further here into the many other 
points which have been brought up to refute 



74 



DEPARTMENT OF STATE BULLETIN 



this claim of injury, including the improved 
position of the farmer now as compared with 
the years following the tariff legislation of 1930 
but preceding the Trade Agreements Act; the 
fact that if we excluded every little trickle of 
farm imports, we would at the most gain only 
one additional acre of domestic pi'oduction for 
every three or four acres we would risk losing 
because their profitable cultivation is depend- 
ent on foreign markets; the fact that such re- 
ductions as have been made in our agricultural 
tariffs by trade agreements have been moderate, 
and, where necessary, carefully safeguarded; 
the disappearance, on fair analysis, of real 
factual support for charges that this or that 
reduction has injured the domestic agricultural 
producer. 

I do wish to call attention to one very im- 
portant aspect which has been pointed out 
repeatedly by Secretary Hull, Secretary 
Wallace, and many others. The idea that agri- 
culture can be made prosperous, or even helped, 
by embargo tariff's is a snare and a delusion. 
That method was given the acid test in 1930 
in the Hawley-Smoot Act and found woefully 
wanting. Agriculture in this country was 
then, and still is, geared to produce a large 
surplus of farm products over and above what 
can be sold in the domestic market. Agricul- 
ture was then, and still is, dependent upon 
foreign markets. If we were to shut out every 
dollar's worth of imports of agricultural pro- 
ducts that could be produced in this country 
outside of a hot house, agriculture would still 
be dependent upon foreign markets. 

Any open-mmded study of our trade in agri- 
cultural products brings out quite clearly the 
relative unimportance to the American farmer 
of the imports of agricultural products, much 
of which consist of noncompetitive products 
such as coffee and rubber which he himself 
consumes ; and the much greater importance of 
an active domestic market and of a healthy 
export trade to dispose of his surpluses. 

In both of these directions — in the domestic 
and in the export markets — the trade-agree- 
ments program has been helping the American 
farmer: in the foreign markets, directly 



through the concessions obtained from foreign 
countries for our agricultural exports; in the 
domestic market, indirectly through the in- 
creased industrial payrolls and consequent 
purchasing power for farm products, which 
results from the improved access to -foreign 
markets for American industrial products 
which has been obtained through trade-agi'ee- 
ment negotiations. 

The concessions obtained in trade agi'eements 
cover nearly three-quarters of our agi'icultural 
exports to the countries with which trade 
agreements have been negotiated, and nearly 
one-half of our industrial exports to the same 
countries. The facts simply do not support the 
contention that the American farmer has not 
been fairly and favorably treated. 

American Labor and the Trade-Agreements 
Program 

Lastly, I would like to remark briefly upon 
some aspects of especial interest to American 
labor. 

There was a time when American labor 
organizations generally supported the demands 
of industry for increased tariff protection. In 
1917, for example, widespi-ead fears of a vast 
inflow of goods from countries with depreci- 
ated currencies led the American Federation of 
Labor to pass a resolution favoring increased 
tariff protection. 

But by 1932, as a result of bitter experience 
with foreign retaliation, the adverse effects of 
super-tariffs upon the employment and living 
standards of American workers were recog- 
nized by organized labor. In a statesmanlike 
resolution adopted in that year, the American 
Federation of Labor I'esolved that henceforth 
the attitude of the Federation toward given 
levels and adjustments of import duties should 
be determined by the question of the extent to 
which tariff "benefits" actually benefited 
woikers. 

I believe that most of the leaders of organ- 
ized labor now recognize the necessity of giv- 
ing consideration to the interests of workers 
dependent upon our export trade and fuUy 



JANUARY 20, 1940 



75 



appreciate the disastrous character of the 
tariff orgies that cuhninated in the Tariff Act 
of 1930. They realize, I think, that many rates 
were considerably in excess of the legitimate 
needs of the industries in question, and that 
where such rates are found to exist today, 
there is scope for downward adjustment with 
beneficial effect upon American interests. 

Wherever concessions have been gi-anted in- 
volving downward adjustments of tariff rates, 
extreme care and caution have been exercised; 
the full regard shown for the protection of 
American wage levels and working conditions 
has been reflected in the subsequent improve- 
ment of trade in the majority of the affected 
industries. 

I may repeat what has often been stated, that 
there is no intention whatever to administer 
this program in a manner to jeopardize em- 
ployment, working conditions, and the living 
standards of American workers; on the con- 
trary, it is their improvement that is sought 
and is being obtained. 

It is certain that the number one problem 
of the United States today is to expand pro- 
ductive employment for the American people. 
It is well known that the increased output per 
worker in many branches of industry, trade, 
and agriculture has increased the national out- 
put of goods and services without a corre- 
sponding increase in employment and consumer 
income. The Federal Reserve Board index 
cif physical production for November 1939 
Avas at 124 percent of the 1923-25 average, as 
compared with 110 for the same month in 1929. 
This increase of output was accomplished by 
a labor force of about the same number as in 
1929, working over an hour a day less than in 
1929. For those who were among the em- 
ployed, weekly wages for November 1939 aver- 
aged about as much for a 39-hour week as 
they did for a 48-hour week in 1929, thanks to 
an increase in the hourly wage. This is the 
usual record of progress in most of the decades 
since the Civil War. But what distinguishes 
the situation since the World War from that 
of preceding periods has been the fact that 
this expansion of production has taken place 



without an accompanying expansion of em- 
ployment sufficient to absorb the increase in 
our working population resulting from the 
general increase in population. 

In the solution of this problem, the trade- 
agreements progi-am is providing an essential 
contribution by promoting the healthy expan- 
sion of foreign markets and consequently of 
domestic employment. It is restoring jobs in 
tlaose excess capacity industries where inactivity 
has brought distress. As I said before, the fact 
that about one-half of our exports consisted, in 
1938 as in 1929, of finished manufactures repre- 
senting a cross-section of American industry, 
indicates the ability of a great many of our 
industries to compete successfully in foreign 
markets despite the higher wages and shorter 
liours which characterize American industry 
as a whole. 

For those who work in American agriculture 
and American industry alike, the important 
thing to consider is not the comparatively small 
proportion of our total consumption of farm 
and factory products which is supplied by im- 
ports, but rather the total consuming power in 
our markets, at home and abroad, for our pro- 
duction as a whole. I would like in closing to 
bring to your attention these two charts, the 
one comparing imports of agi'icultural products 
with cash farm income and the other comparing 
imports with industrial employment and pro- 
duction. 

{Exhihifx: Charts — "United States Imports 
of Agricultural Products and Cash Farm In- 
come, 1928-1939"; "Comparison of Production 
and Employment with Imports, 1928-1938"] 
In each case these charts show the fallacy of 
assuming that an increase in imports means 
injury to the American farmer or workingman. 
It is remarkable to note how closely imports 
lise and fall concurrently with rising and fall- 
ing farm income or factory production and em- 
ployment. 

The really important objective, the aim we 
are all agreed upon, is the improvement in the 
items of major consideration, farm income, 
factor^' employment, and production. The ul- 



76 



DEPARTMENT OF STATE BULLETIN 



timate objective of the trade-agreements pro- 
gram is to make an ever- increasing contribution 
to this aim, and it is this objective and its con- 



tinuing accomplishment which provide the es- 
sential warrant for continuing the authority to 
negotiate trade agreements. 



■f -f -f ■♦■ -f -f -f 



RECIPROCAL TRADE AGREEMENTS 

Address by Assistant Secretary Grady ' 



[Released to the press January 20] 

One of the principal subjects before Congress 
at the present time is the question of continu- 
ing the President's authority to negotiate trade 
agreements with foreign countries, which is 
the legal basis for the trade-agreements pro- 
gram. This authority was first granted by the 
Trade Agreements Act of June 12, 1934. It 
was renewed in 1937, but the authority to nego- 
tiate new trade agreements will expire on June 
12, 1940, unless Congress in the meantime takes 
action to continue it. 

In his message to Congress at the opening of 
the present session the President recommended 
that this authority be continued. A joint reso- 
lution to continue the legislation for 3 more 
years has been introduced into the House of 
Representatives, and, since January 11, the 
Ways and Means Committee has been conduct- 
ing public hearings on the subject. 

Over the 5I/2 years during which this trade- 
agreements program has been in operation 
there has been much comment and discussion 
regarding it, both favorable and luifavorable, 
from all sections of the country and from vari- 
ous branches of industry and agriculture. 
Since it is now a subject of outstanding na- 
tional interest, I am happy to have this oppor- 
tunity to bring to your attention the various 
important considerations which must be taken 
into account in order to fonn a fair and equi- 
table judgment of its significance. 

The purpose of this program is to restore 
and expand our foreign trade for the benefit 
of American agriculture, industry, mining. 



'Delivered at the banquet of the Philadelphia Real 
Estate Board, Pliiladrli)hia, Pa., January 20, 1940. 



and commerce as a means of improving our 
national economic welfare through the result- 
ing increase in economic acti%dty throughout 
the country. 

To accomplish this purpose the Trade 
Agreements Act authorizes the President to 
enter into trade agreements with foreign gov- 
ernments by which, in return for concessions 
benefiting our export trade to the other coun- 
try, modifications are made in our import 
duties and other restrictions. The act pre- 
scribes limits and conditions within which 
these reductions may be made and authorizes 
the President to bring such trade agreements 
into effect by proclamation. 

The progress which has been made in nego- 
tiating such trade agreements is indicated in 
a general way by the fact that the 20 countries 
with which trade agreements have been con- 
cluded account for about 60 percent of our 
foreign trade. In 1939 our total foreign trade 
amounted to about 5.4 billions of dollars, of 
Avhich about 2.3 billions were imports and 
about 3.1 billions exports. 

The products which make up our foreign 
trade range from primary raw materials to 
fully manufactured articles. In 1938, fully 
manufactured articles accounted for one-half 
of our exports. This demonstrates that many 
of our industries, despite high wage levels and 
shorter working hours, are nevertheless able to 
compete successfully in world markets, without 
the benefit of a protective tariff, against the 
lower wage levels and longer working houi-s 
of other countries. 

Since 1934 there has been a substantial im- 
provement in our trade. Our total foreign 



JANUARY 2 0, 1940 



77 



trade, exports and imports combined, which 
had fallen from nearly 10 billions of dollars 
in 1929 to around 3 billions of dollars in 1932, 
has risen, as I have said, to an average of more 
than 5I/2 billions in the last 3 yeare. This en- 
tire increase cannot be attributed to the trade- 
agreements program, for there are many fac- 
tors which determine the size of our foreign 
trade. For instance, our general industrial 
activity had a great deal to do with the varia- 
tion in our total foreign trade over the last 3 
years from 6.4 billions of dollars in 1937 to 
4.2 billions in 1938 and 5.4 billions in 1939. 
However, there is a vei-y clear indication that 
the trade agreements have definitely contrib- 
uted to the increase in our trade since 1934. 
For, if we compare the rate of increase of our 
trade for a period before any number of agree- 
ments were in effect, such as the years 1934r-35 
and a period such as 1938-39, after a consid- 
erable number of agreements had been in oper- 

' ation, we find tlaat our trade with the trade- 
agreement countries increased much faster 
than with the others. Actually, our exports 
to trade-agreement countries increased by 50 

1 percent between those two periods as compared 
with a 28.3-percent increase in exports to 
other countries; and our imports from trade- 
agreement countries increased by 17.8 percent 
as compared with an 11.3-percent increase from 
other countries. 

These increases in trade mean more business 
and more active business, and I think that you 
who are mainly interested- in real estate ac- 
tivity can particularly well appreciate how 
the prosperity of any one business is tied up 
with the state of business in general. 

So you can appi'eciate the importance to all 
of us of the sound restoration of our foreign 
trade ; for not only is that trade an important 
section of our general business activity, but 
its effects ramify into practically every aspect 

, of our business life. Therefore, the restora- 
tion and expansion of our foi-eign trade and 
the efforts to bring this about through the 
negotiation of trade agreements in accordance 
with a sound policy of international economic 
relations is of importance to all of us. 



Some of you will perhaps be inclined to say, 
"That is all very well in a world that is at 
peace, but with the state of warfare which af- 
flicts so much of the world today, what use is 
there of discussing and trying to carry out a 
program which is based upon the fundamental 
conception of peaceful international trade?" 

This is a very important point. Certainly 
the outbreak of hostilities in Europe has 
weighty consequences for our trade. It stimu- 
lates some lines and affects others adversely. 
Likewise it affects strongly the operation of 
the trade agreements which have been con- 
cluded and complicates or prevents the ne- 
gotiation of others. But this is not an argu- 
ment for discontinuing the program. On the 
contrary, we must, through the negotiation of 
new trade agi cements wherever it remains pos- 
sible, continue to encourage the maintenance of 
as much of our normal trade as is possible in 
these times so as to reduce as much as we can 
the adjustments which will be necessary when 
the present abnormal conditions come to an 
end. Secondly, we must keep in readiness 
this instrument of trade negotiations for mu- 
tual benefit against the day when the present 
unhappy state of affairs shall have been ended. 

I would like to dispose of one more point in 
this connection. There are some who say that 
because the governments of countries which are 
now at war, and with which we have concluded 
trade agreements, have felt themselves com- 
pelled to take emergency measui-es affecting 
their trade which run counter to the purposes 
and specific provisions of our trade agreements 
with them, and have thereby interfered with 
the normal peacetime trade which we have 
sought to promote by these agreements, the 
agreements have become one-sided and we are 
left "holding the bag" and should therefore 
find some way of terminating the agreements. 

I want to make it clear first of all that the 
agreements in question contain provisions 
allowing latitude to take special measures in 
time of war, just as they contain exceptions 
permitting us to take measures necessary to 
maintain our neutrality. The question, how- 
ever, is not whether these agreements are 



78 



DEPARTMENT OF STATE BULLETIN 



violated but whether we have lost the benefits 
of them to such an extent that we would be 
better off without them. I think there is no 
question that wei would be worse off without 
them. Under wartime necessity the other 
governments in question have felt compelled 
to concentrate on purchases from us of certain 
lines of products and to curtail purchases of 
others which we are particularly anxious to sell 
abroad, such as apples and tobacco. But if the 
tariff reductions which we granted these other 
countries were not in effect and they found it 
more difficult to sell their products to us, they 
would have still less money with which to buy 
from us, and we can be sure that the result 
would be a further curtailment of the purchases 
of those products which they regard as not 
essential at the present time. 

The concessions which we granted on our 
imports from these countries were made only 
after very careful study of the position and 
needs of our domestic industries, and on the 
whole the outbreak of hostilities in Europe has 
not made the position of our producers worse 
as compared with the producers in the coimtries 
now in war, so that it cannot be said that our 
own industries now need higher protection 
against them. 

The trade-agreements program has a num- 
ber of important features which have been 
carefully formulated to fit most appropriately 
into our own circmnstances and institutions 
and to be most effective in achieving the gen- 
eral purpose. As I have said, it provides for 
the negotiation of tariff reductions within pre- 
scribed limits and conditions in return for 
reciprocal concessions; it provides for the 
placing of these agreements into effect by 
Presidential proclamation; it provides for the 
application of the reduced duties to imports 
from all countries except those found to be 
discriminating against us; it provides for 
public announcements of negotiations and an 
opportunity for the public to be heard before 
the agreements are made, and for the coopera- 
tive work of the various Government depart- 
ments concerned with foreign trade. These 
various features are designed to achieve a sound 



economic purpose through an essentially demo- 
cratic procedure. Various of these features 
have, however, been subjected from time to 
time to criticism, mostly from lack of informa- 
tion or understanding of the essentials. I 
would like therefore to cover some of these 
points briefly. 

In the first place, it is argued by some that 
the Trade Agreements Act is unconstitutional. 
Without going into the complicated and tech- 
nical legal details of this question, I may say 
that when the Trade Agreements Act was 
drafted, when it was first acted upon by the 
Congress in 1934, and when it was renewed in 
1937, considerable study was given to this ques- 
tion of constitutionality, and the definite con- 
clusion was reached that there were ample 
precedents for such delegation of authority as 
is incorporated in the Trade Agreements Act. 

There are many sincere people who are in 
sympathy with the general objectives of the 
trade-agreements program, but who believe that 
trade agreements should be subject to ratifi- 
cation by the Senate. The difficulty with this 
proposal is evidenced in our experience with 
reciprocity negotiations requiring such ratifi- 
cation. This experience has shown beyond a 
shadow of a doubt that a reciprocity agi-eement 
which has to be approved by two-thirds of the 
Senate before it can come into effect might just 
as well not be negotiated in the first place. 

Over the last century of our history, only 
3 reciprocal treaties have actually come into 
effect with congressional approval, while about 
22 others which were negotiated never came 
into effect because they never received approval. 
The three treaties which were approved were 
those with Canada, Hawaii, and Cuba, coun- 
tries bound to the United States by special 
geographic or political ties. Even if there 
were a more reasonable chance of such agree- 
ments becoming effective, there would still be 
the great disadvantage of the delay necessarily 
involved in this procedure. It must be quite 
obvious that long delay before an agreement 
can come into operation after it is negotiated 
means that it loses much of its usefulness ; and 
as a matter of fact, foreign countries would not 



JANUARY 20, 1940 

be very anxious to enter into negotiations with 
us under such conditions. 

It is also sometimes argued that the delega- 
tion to the President of authority to enter into 
trade agreements is not in accordance with the 
democratic prmciples on which this Govern- 
ment is based, that the sole power for making 
tariff adjustments should remain with the Con- 
gi-ess. In answer to this pomt, let me say, that 
Congress retains the essential tariff-making 
power by defining the limitations which are 
placed on the President's authority by the pro- 
visions of the act itself and simply delegates 
power to make adjustments in accordance with 
the policy it lays down for limited periods, and 
that the procedure followed in the administra- 
tion of the act provides ample opportunity for 
all interested persons to be heard in connection 
with any proposed negotiations. 

This last point is important. Under the old 
methods of tariff making, those groups who 
could afford high-priced tariff lobbyists to 
represent them in Washington, familiar with 

I the logrolling processes of tariff making, had 
the best opportunity to have their special in- 

I terests considered. 

I Under the trade-agreements procedure, pub- 

i lie hearings open to all interested persons are 
held in connection with each proposed agree- 
ment. The information which these persons 
sulimit, orally or in writing, is closely analyzed 
and studied, together with the vast information 
available fiom official sources, by the experts 
of the trade- agi-eements organization who spe- 
cialize in the various branches of commerce, 
agriculture, and industry. 

This interdepartmental trade-agreements or- 
ganization draws upon the full resources of the 
Tariff Commission, as well as of the Depart- 
ments of State, Commerce, Agriculture, and 
the Treasury. Through a well-organized sys- 
tem of interdepartmental committees, the 
members of this organization cooperate closely 
' in the operation of the trade-agreements pro- 
gram. They study the many products in- 
volved in our trade with foreign countries, as 
well as the particular problems affecting our 
trade with each country, and formulate care- 



79 



fully worked out recommendations which, 
after being approved by the highest officials 
of the administration, form the basis of nego- 
tiations with the other government. 

All in all, this is an effective and scientific 
procedure of tariff adjustment developed in 
full accord with our assential democratic in- 
stitutions. 

A number of people who favor tariff adjust- 
ment by executive action under strictly defined 
authority delegated by Congress, claim that 
such adjustments should proceed solely on the 
basis of the differences in the cost of produc- 
tion in this counti-y and abroad. The fallacy 
of this method of determining tariffs has been 
shown by such able tariff experts as Robert 
Lincoln O'Brien, formerly Chairman of the 
Tariff Commission, and the late Thomas Walk- 
er Page, formerly Vice Chairman of the Com- 
mission. Quite apart, however, from the 
economic principle involved, this formula is 
not one suitable for practical operation. Cost 
data adequate for this purpose can rarely be 
obtained; experience has shown that the at- 
tempt to obtain cost data from foreign pro- 
ducers is apt to arouse great resentment abroad 
against the United States. Even in cases 
where full data are obtainable, a wide varia- 
tion of costs among different producers is 
likely to exist. Moreover, even in such cases 
the process of calculation involves so many 
variables that the cost rule as an exact criterion 
becomes purely fictitious. On the basis of the 
same data different persons are likely to get 
different results in harmony with their respec- 
tive tariff philosopliies. 

Costs of production are, of course, of im- 
portance in determining tariff adjustments, 
and costs of production are taken into fully 
adequate account by the interdepartmental 
trade-agreements organization in formulating 
its proposals for tariff adjustment. But to 
use the comparative costs formula as the sole 
basis for effecting tariff adjiistments would 
not be satisfactory, and, furthermore, it would 
be sadly deficient as compared with our trade- 
agreements procedure, which also provides 
means for obtaining reductions in the trade 



80 



DEPARTMENT OF STATE BULLETIN 



restrictions imposed by other countries against 
our goods. 

The most-favored-nation policy by which 
the tariff concessions which we grant in a 
trade agi'eement with one country are applied 
to the similar goods of all other countries is 
frequently misunderstood. The value of this 
policy has been challenged on the ground that 
it is not good business or sound trading. 

In the broad sense this policy means non- 
discriminatory treatment. It contrasts with 
policies of retaliation and economic strife. It 
is the basis for friendly and sane commercial 
relations between nations leading to friendly 
cooperation and a mutually beneficial expan- 
sion of trade. 

When we receive assurances of most-favored- 
nation treatment from a foreign government, 
it means that, in addition to the specific tariff 
concessions which we obtain in the trade agree- 
ment, we also get the benefit of any duty reduc- 
tions or other concessions that country may 
grant or may have granted to a third country. 
This applies not only to the products included 
in our trade agreement but to all the prod- 
ucts entering into our trade with the country 
concerned. Without the benefit of the most- 
favored-nation clause, we might easily lose 
what we get through trade-agreement negotia- 
tions, since the other countries could grant 
lower rates to competing countries whose prod- 
ucts would then seize the market from us. 

If we did not extend the benefit of our 
trade-agreement concessions to third countries, 
we would be discriminating against them and 
they would therefore be stimulated to discrim- 
inate against us; we could not expect them to 
grant to our goods the same treatment they 
grant to the goods of other countries. The 
assurance that our trade will receive non- 
discriminatory treatment in foreign markets is 
more than adequate compensation for extend- 
ing trade-agreement benefits to other countries. 

Nor do we lose valuable bargaining power 
by following this policy. I^i the negotiation 
of a trade agreement with one country we give 
consideration to granting concessions only on 
those products of which that country is the 



principal or an important supplier in the 
United States market. In the trade agreement 
with France, for instance, we gave a concession 
on canned mushrooms. From 85 percent to 
90 percent of our imports of canned mush- 
rooms come from France. Consequently the 
extension of this concession to other countries 
did not have as great a value for those coun- 
tries as it did for France. By following the 
yardstick of "principal or important supplier," 
concessions on certain products are reserved 
for the countries most interested in them. 

In some quai'ters there is considerable argu- 
ment from time to time, to the effect that 
American agriculture has been harmed by trade 
agreements. Self-styled "friends of the farm- 
er" have cited increases in agricultural imports 
and have demanded that the American market 
be preserved for the American farmer. An 
unbiased examination of the actual facts shows 
conclusively that our agricultural interests have 
been helped rather than hurt by trade 
agreements. 

First of all, the American farmer is not being 
deprived of his home market by imports of 
foreign agricultural products. An analysis 
prepared by the Department of Agriculture 
indicates that agricultural imports form a very 
small part of our domestic consumption of 
fann products, whereas the greatest part of the 
American market is supplied by domestic pro- 
duction. A gi-eat part of those of our imports 
classed as agricultural consist of noncompeti- 
tive products, such as coffee, tea, rubbei', et 
cetera, which we do not produce. 

^^Tiere reductions have been made in trade 
agreements in the duties on agricultural com- 
modities, these reductions have been extremely 
moderate and in appropriate cases have been 
f ui'ther safeguarded by limitations in the quan- 
tities to which the reduced rates apply. 

The real interest of American agriculture 
does not lie in shutting out an insignificant 
trickle of imports. Tlie prosperity of the 
American farmer depends in lai'ge measure on 
his ability to find markets for his exportable 
surpluses. In this field trade agreements 
directlj' contribute to the farmers' business. 



JANUARY 20, 1940 



81 



The concessions obtained from foreign coun- 
tries in trade agreements cover nearly three- 
fourths of our agricultural exports to the coun- 
tries with which trade agreements have been 
negotiated. 

In addition, the farmer benefits indirectly 
tlu'ough the increased purchasing power for 
fami products which results from larger indus- 
trial pay rolls in manufacturing industries 
benefiting from increased exports under trade 
agreements. 

Labor, too, has an important stake in foreign 
trade and the trade-agreements program. Op- 
■ ponents of trade agreements contend that im- 
ports of foreign products have jeopardized the 
American standard of living and threatened 
the welfare of the American worker. These 
fears are not well foimded. Great care has 
been taken in the granting of concessions and 
due regard has been given to American working 
conditions and wage levels. Far from seeking 
to destroy the jobs of American labor, the 
trade-agreements progi'am is working to create 
jobs through expanded foreign markets. A 
healthy expansion of foreign markets brings 
with it a healthy expansion of employment. 

I will conclude with a few words concerning 
. the relation of your State and your city to this 
program for increased foreign trade. Total ex- 
ports originating in Pennsylvania fell from 341 
million dollars in 1929 to 100 million dollars 
in 1932. This decline in exports was accom- 
panied by decline in purchasing power and 
prices and was one factor in the general busi- 
ness decline. 

Among the important export products of 
Pennsylvania which benefit from the conces- 
sions obtained in trade agreements are iron and 
steel products, electrical and industrial ma- 
chinery, and petroleum products. Concessions 
designed to expand the foreign markets for 
iron and steel were obtained in 17 agreements, 
' for electrical machinery in 16 agreements, for 

i industrial machinery in 14 agreements, and 
for petroleum products in 12 agreements. 
It is estimated that of all the people em- 
ployed in Pennsylvania, about 200,000 owe 
their jobs to the State's export trade. Prac- 



tically every industry in Pennsylvania uses a 
variety of imported products, and it is esti- 
mated that approximately 80,000 persons in 
the State have jobs in factories working im- 
ported raw materials into finished products for 
domestic consumption and for re-export. 
Probably 10,000 more factory jobs are depend- 
ent upon the secondary processing of some 
of the imported materials or upon the use of 
other raw materials and semimanufactures. 
Reductions in duty have been made through 
trade agreements on a number of the impor- 
tant products necessary to the industries of 
Pennsylvania. 

Philadelphia is one of the foremost ports of 
the United States in respect to the volume of 
its commerce, its harbor facilities, and the area 
of the territory served by it. Increased for- 
eign trade means increased freight tonnage in 
this port, as well as greater activity and em- 
ployment in railway and trucking transjoor- 
tation, foreign-trade brokerage, warehousing, 
stevedoring, advertising, real estate, insurance, 
and banking. 

The prosperity of every section of the coun- 
try naturally depends on the prosperity of the 
country as a whole. Increased foreign trade, 
both imports and exports, means increased fac- 
tory production and employment, increased 
farm income, and increased consiuner pur- 
chasing power. This is the aim of the trade- 
agreements program. The agreements have, 
I believe, made considerable progress in achiev- 
ing this aim. I hope they may continue to 
do so. 



General 



DEATH OF SENATOR BORAH 

Following is a statement by the President : 

"The Senate and the Nation are sadly bereft 
by the passing of Senator Borah. We shall 
miss him and mourn him and long remember 
the superb courage which was his. He dared 



82 



DEPARTMENT OF STATE BULLETIN 



often to stand alone and even at times to sub- 
ordinate party interests when he pi'esumably 
saw a divergence of party interests and the 
national interest. Fair-minded, firm in prin- 
ciple, and shrewd in judgment, he sometimes 
gave and often received hard blows, but he had 
great personal charm and a courteous manner 
which had its source in a kind heart. He had 
thought deeply and studied with patience all 
of the great social, political, and economic 
questions which had so vitally concerned his 
countrymen during the long period of his pub- 
lic service. His utterances commanded the 
close attention of the Senate and of a far-flung 



audience, whenever he spoke. A unique figure, 
his passing leaves a void in American public 
life." 



[Released to the presa January 19] 

Secretai-y Hull made the following state- 
ment on January 19 : 

"I was deeply distressed to learn of the jjass- 
ing of Senator Borah. His long record of 
truly great service to the people of the Nation 
will live in history. In his death the country 
loses a fearless statesman ever faithful to his 
principles." 



International Conferences, Commissions, etc. 



INTERNATIONAL JOINT COMMISSION, UNITED STATES 
AND CANADA 

Questions With Respect to Waters of Souris (Mouse) River 



[Released to tlie press January 15] 

The Governments of the United States and 
Canada have agreed to refer three questions 
I'elating to the waters of the Souris (Mouse) 
River to the International Joint Commission 
created by the provisions of article 7 of the 
Boundary Waters Treaty, 1909,^ for investiga- 
tion, report, and recommendation. This river 
crosses the international boundary from the 
Province of Saskatchewan to the State of 
North Dakota and then flows into the Province 
of Manitoba from Noilh Dakota. As tech- 
nical problems are involved, a group of six 
engineers, three representing the United States 
and three representing Canada, have been des- 
ignated to assist the Commission in obtaining 
the information desired in the course of the 
investigation. 

These questions were referred to the Inter- 
national Joint Commission by identic letters 
addressed to the Commission by the Honorable 
Cordell Hull, Secretary of State, for the 



'Treaty Series No. 548 (36 Stat. 2448). 



United States and by the Right Honorable 
Mackenzie King, Secretary of State for Ex- 
ternal Affairs, for Canada. Mr. Hull's letter 
was as follows: 

"It gives me pleasure to inform you that 
the Governments of the United States and 
Canada have agreed to i-efer to the Interna- 
tional Joint Commission, under the provisions 
of Article 9 of the Boundary Waters Treaty. 
1909, for investigation, report, and recom- 
mendation, the following questions with re- 
spect to the %vaters of the Souris (Mouse) 
River and its tributaries which cross the Inter- 
national Boundary from the Province of Sas- 
katchewan to the State of North Dakota and 
from the State of North Dakota to the Prov- 
ince of Manitoba : 

'■'■Question 1. In order to secure the interests 
of the inhabitants of the United States and 
Canada in the Souris (Mouse) River drainage 
basin, what apportionment should be made of 
the waters of the Souris (Mouse) River and 
its tributaries, the waters of which cross the 
international boundary, to the Province of 



JANUARY 2 0, 1940 

Saskatchewan, the State of North Dakota, and 
the Province of Manitoba? 

'■•Question 2. What methods of control and 
operation would be feasible and desirable in 
order to regulate the use and flow of the waters 
of the Souris (Mouse) River and of the tribu- 
taries, the waters of which cross the interna- 
tional boundary, in accordance with the appor- 
tionment recommended in the answer to 
Question 1? 

'"Question S. Pending a final answer to ques- 
tions 1 and 2, what interim measures or regime 
should be adopted to secure the foregoing 
objects? 

"To assist the Commission in obtaining any 
information it may desire in the course of the 
investigation, the two Govermnents have nomi- 
nated from their technical services the follow- 
ing group of engineers, who are familiar with 
the problems on both sides of the border, and 
representative of the various interests: 

"jMr. E. J. Thomas, Chairman of the Group, 
Engineer representing United States, State En- 
gineer of North Dakota, State House, Bis- 
marck, North Dakota. 



83 



"Mr. S. H. McCrory, Assistant Chief, Bureau 
of Agricultural Chemistry and Engineering, 
United States Department of Agriculture, 
Washington, D. C. 

"Mr. Briee McBride, Hydraulic Engineer, 
Bureau of Biological Survey, United States 
Department of the Interior, Washington, D. C. 

"Mr. Victor Meek, Chairman of the Group, 
Engineer representing Canada, Assistant Con- 
troller, Dominion Water and Power Bureau, 
Department of Mines and Resources, Ottawa, 
Ontario. 

"Mr. D. M. Stephens, Deputy Minister, De- 
partment of Mines and Natural Resoui'ces, Win- 
nipeg, Manitoba. 

"Mr. C. J. McGavin, Chief Engineer, AVater 
Rights Branch, Department of Natural Re- 
sources, Regina, Saskatchewan. 

"In view of the conditions obtaining in the 
Souris River watershed, I request that early 
consideration be given to question 3, with a 
view to the consideration of the possibility of 
recommending interim measures to relieve the 
present situation." 



> -f -f -f -f + -f 



EIGHTH AMERICAN SCIENTIFIC CONGRESS 



|!;rlease(l to the press January 17] 

A meeting of the chairmen of the 11 sec- 
iKins of the Eighth American Scientific Con- 
:in'!^s was held in the Department of State 
January 16 for the purpose of reviewing the 
progress made in the preparatory work and to 
complete the coordination of the activities of 
the several sections. This Congress, which 
will be held in Washington May 10-18, 1940. 
imder official auspices, will constitute this 
Government's most outstanding contribution to 
the celebration of the fiftieth anniversary of 
the founding of the Pan American Union. 
Special headquarters have been established in 
, tlie Division of International Conferences of 
thi' Department of State. 

The Honorable Sumner Welles, Under Sec- 
retary of State and chairman of the Organiz- 
ing Committee, being absent from the city. Dr. 
Warren Kelchner, Chief, Division of Interna- 



tional Conferences, Department of State, and 
vice cliairman of the Organizing Committee, 
acted as chairman of the meeting assisted by 
Dr. Alexander Wetmore, Assistant Secretary, 
Smithsonian Institution, who is the secretary 
general of the Congress. In addition to Dr. 
L. S. Rowe, Director General, and Dr. Wil- 
liam Manger, Counselor, Pan American Union, 
the following Congress officials participated: 

I. Anthropological Sciences — Chairman, Dr. 
Herbert J. Spinden, Curator, Division of 
jVmerican Indian Art and Primitive Cultures, 
the Brooklyn Museum; II. Biological 
Sciences — Secretary, Mr. James A. G. Rehn, 
Secretary of the Academy of Natural Sciences; 
III. Geological Sciences — Chairman, Dr. T. 
Wayland Vaughan, President of the Geolog- 
ical Society of America, 1939; Secretary, Dr. 
Wendell Phillips Woodring, Senior Geologist, 



84 



DEPARTMENT OF STATE BULLETIN 



Department of the Interior; IV. Agriculture 
and Conservation — Secretary, Mr. Ernest G. 
Holt, Chief, Biology Division, Department of 
Agriculture; V. Public Health and Medicine — 
Secretai-y, Dr. A. M. Stimson, Medical Direc- 
tor, United States Public Health Service; Dr. 
Aristides A. Moll, Pan American Sanitary 
Bureau ; VI. Physical and Chemical Sciences — 
Chairman, Dr. Lyman J. Briggs, Director, Na- 
tional Bureau of Standards; Secretary — Mr. 
Eugene C. Crittenden, Assistant Director, 
National Bureau of Standards; VII. Statis- 
tics — Chairman, Dr. Stuart A. Rice, Chairman 
of the Central Statistical Board; Secretary, 
Di*. Halbert L. Dunn, Bureau of the Census, 
Department of Commerce; VIII. History and 
Geography — Chairman, Dr. Clarence H. Har- 
ing. Professor of Latin American History and 
Economics, Harvard University; Secretary, 
Dr. Robert C. Smith, Library of Congress; IX. 
International Law, Public Law, and Juris- 
prudence — Chairman, Dr. James Brown Scott, 
Trustee and Secretary, Carnegie Endowment 
for International Peace; Secretary, Mr. George 
A. Finch, Carnegie Endowment for Interna- 
tional Peace; X. Economics and Sociology — 
Chmrman, Dr. Harold G. Moulton, President 
of the Brookings Institution; Secretary, Mr. 
Benjamin Colby, the Brookings Institution; 
XI. Education — Dr. Waldo Leland, Secretary, 
American Council of Learned Societies. 

Invitations on behalf of the President have 
been extended to the governments of all the 
American republics to participate. As an evi- 
dence of the importance with which this forth- 
coming meeting is viewed by our Government, 
the President has graciously offered to open 
the Congress officially. 

Reports on the recent activities in comiection 
with the Congress indicated that enthusiastic 
responses have been received fi'om this country 
as well as from most of the other American re- 
publics. Cooperating committees have already 
been set up by a number of the other govern- 
ments, and in many instances scientists have 
already signified their intention to participate. 



Particular attention has been devoted to in- 
tegrating the programs of the various section.'?, 
and in several cases joint meetings have been 
arranged. The Congress will be divided into 
the above-indicated 11 sections which will 
really constitute 11 separate inter-American 
conferences held simultaneously. 

A number of other organizations will also 
be meeting during the sessions of the Scientific 
Congress, including several inter-American 
groups, and it was revealed that in connection 
with the Section on International Law, the 
American Society of International Law, the 
Committee on International and Comparative 
Law of the American Bar Association, the 
American Institute of International Law, and 
the American Law Institute will all be meeting 
at the same time. Arrangements are being 
made whereby the programs of these meetings 
will be correlated with the meetings of the 
Congress. In the field of public health and 
medicine, the Directors of Public Health of 
the American republics will be meeting imme- 
diately prior to the opening of the Congress. 

The encouraging reports of the various com- 
mittee chaimien and the favorable accoimts 
from all quarters concerning the forthcoming 
Congress were indications that the Eighth 
American Scientific Congress will be one of 
the most outstanding inter- American confer- 
ences ever held. 

>-♦■-♦- 

GOLDEN GATE INTERNATIONAL 
EXPOSITION 

The President issued a proclamation (No. 
2381) on January 11, 1940, inviting "the na- 
tions which have participated in the said Golden 
Gate International Exposition during the year 
1939 to continue their participation therein dur- 
ing the calendar year 1940, or such part there- 
of as may seem appropriate." 

The text of the proclamation is printed in 
tlie Federal Register for January 16, 1940 (Vol, 
5, No. 10), page 193. 



Departmental Service 



APPOINTMENT OF WARREN KELCHNER AS CHIEF OF THE 
DIVISION OF INTERNATIONAL CONFERENCES 



[Released to tho press January 15] 

Tlie Set'ietary of Sliite announced on Janu- 
ary 15 the appointment of Mr. Warren Kelch- 
iier as Chief of the Division of International 
Conferences of the Department of State, ef- 
fective January 11, 1940. Mr. Kelchner has 
been Acting Chief of the Division since Feb- 
ruary 24, 1939. 

The following is Mr. Kelcluier's biography : 

Born in Orangeville, Pa., November 6, 1895 ; 
Valparaiso University, LL. B. 1917 ; University 
of Pennsylvania, A. B. 1923; University of 
Girenoble, summer 1925; Institut Universitaire 
les Hautes Etudes Internationales 1925-26; 
Harvard, M. A. 1928; University of Pennsyl- 
i^ania, Ph. D. 1928 ; member of bar of Indiana ; 
teacher 1913-15, 1918-20; instructor in political 
science. University of Pennsylvania, 1923-25; 
Penfield traveling scholar in international law 
and diplomacy 1925-27; research on American 
republics under Bureau of International Re- 
search, Harvard, 1928-30; appointed after ex- 
amination, Foreign Service officer unclassified 
and vice consul of career January 29, 1929; 
assigned to the Foreign Service School Febru- 
ary 2, 1929 ; assistant secretary, Commission for 
Study and Review of Conditions in Haiti, 1930; 
assigned to Port-au-Prince July 22, 1930; sec- 
retary in the Diplomatic Service January 22, 
1931; assigned also as third secretary at Port- 
au-Prince February 20, 1931; resigned Novem- 
ber 8, 1931; appointed divisional assistant at 
$4,600 in the Department of State November 
9, 1931; secretary to American delegation. 
Seventh International Conference of American 
States, Montevideo, 1933; adviser. Pan Ameri- 
,can Commercial Conference, Buenos Aires, 
1935 ; at $5,600 February 16, 1936 ; technical ad- 
viser, Inter-American Conference for Mainte- 



nunce of Peace, Buenos Aires, 1936; technical 
exfjert, Inter-Amei'ican Technical Aviation 
Conference, Lima, 1937; secretary general to 
American delegation. Eighth International 
Conference of American States, Lima, 1938; 
assistant chief and acting chief. Division of In- 
tel-national Conferences, at $6,500 February 24, 
1939; at $7,000 February 25, 1939; adviser and 
secretary general to American delegation. Meet- 
ing of Foreign Ministers of American Repub- 
lics for Consultation, Panama, 1939. 



Foreign Service 



PERSONNEL CHANGES 

[Released to the press January 20] 

Changes in the Foreign Service of the United 
States since January 13, 19 1^0: 

Edward B. Lawson, of Washington, D. C, 
Foreign Service officer, assigned to the Depart- 
ment of State and detailed to the Department 
of Commerce, has been designated commercial 
attache at Managua, Nicaragua. 

Dale W. Maher, of Joplin, Mo., second sec- 
retary of legation and consul at Budapest, 
Hungary, has been assigned as consul at 
Cologne, Germany. 

Clare H. Timberlake, of Jackson, Mich., 
vice consul at Vigo, Spain, has been assigned 
as vice consul at Aden, Arabia. 

Archibald R. Randolph, of Virginia, For- 
eign Service officer, designated assistant trade 
commission at Bogota, Colombia, has been 



So 



86 



DEPAKTMENT OF STATE BULLETIN! 



designated third secretary of embassy and vice 
consul at Bogota, Colombia. Mr. Randolph 
will serve in dual caiJacity. 

George E. Miller, of New Jersey, Foreign 
Service officer, designated assistant trade com- 
missioner at London, England, has been as- 
signed as vice consul at Paris, France. 



Robert T. Cowan, of Dallas, Tex., vice con 
sul at Aden, Arabia, has been assigned as vict 
consul at Ziirich, Switzerland. 

Richard D. Gatewood, of New York, N. Y. 
third secretary of embassy and vice consul ;il 
Rio de Janeiro, Brazil, has been assigned at 
vice consul at Prague, Bohemia. 



J 



Treaty Information 



Compiled by the Treaty Division 



ARBITRATION AND JUDICIAL 
SETTLEMENT 

General Act for the Pacific Settlement of 
International Disputes 

Canada 

There is printed below the text of a letter 
from the Canadian Government addressed to 
the Secretary General of the League of Na- 
tions, and received by him on December 8, 
1939, regarding the accession of Canada to the 
General Act for the Pacific Settlement of In- 
ternational Disputes, signed at Geneva, on 
September 26, 1928: 

''7th December 1939. 
"Sir: 

"The Canadian Government has found it 
necessary to consider the position, resulting 
from the existence of a state of war with the 
Gei-man Reich, of the Canadian acceptance of 
the General Act for the Pacific Settlement of 
International Disputes. The acceptance of 
the General Act was for a five-year period 
ending on 16th August of this year. In view 
of the fact that no action was taken by the 
Canadian Government it is understood that 
the obligation would extend for another five- 
year pei'iod dating from that date. 

In view of the circumstances referred to in 
the letter of this date dealing with Canadian 
adherence to the Optional Clause^ and of the 



" Post. p. S7. 



fact that the consideration therein .set fortli 
ajDplies with equal force in the case of tlu 
General Act, I am, therefore, directed to no 
tify you that the Canadian Government wili 
not i-egard their acceptance of the General Act 
as covering disputes arising out of events (k-- 
cui-ring during the present war. 

It is requested that this notification may br 
communicated to the Governments of all the 
States that, have accepted the General Act." 

Netherlands 

There is printed below the text of a letter 
from the Netherlands Government addressed 
to the Secretary General of the League of 
Nations, and received by him on December 4, 
1939, in regard to the declaration made by 
Australia, when adliering to the General Act 
for the Pacific Settlement of International 
Disputes, signed at Geneva on September 26, 
1928: 

'■'■ {T ranslation) 

"The Ministry of Foreign Affairs has the 
honour to acknowledge the receipt of the Sec- 
retai-y-General's circular letter of September 
13th 1939 (C. L. 144. 1939) concerning a com- 
munication from His Majesty's Government 
in the Commonwealth of Australia relating to 
the General Act. 

"The Royal Government, in taking note of 
this communication, is obliged to make the 
same reservation in regard to this notification 
as that made bv the Netherlands Government 



TAirUARY 20, 1940 

'in regard to the denunciation by various States 
of the Optional Clause of Article 36 of the 
Statute of the Permanent Court of Intema- 
linnal Justice." 

Permanent Court of International Justice 

''iinada 

riiere is printed below the text of a letter 
iikhessed to the Secretary General of the 
[A'ac^ue of Nations by the Canadian Govern- 
iient relating to the acceptance by Canada of 
;he Optional Clause of the Statute of the 
Permanent Court of International Justice: 

"7th December, 1939. 
■Sir: 

"The Canadian Government has found it 
K'cessary to consider the position, resulting 
:'rom the existence of a state of war with Ger- 
nany, of the Canadian acceptance of the 
)ptional Clause of the Statute of the Per- 
nanent Court of International Justice. The 
Kceptance of this clause was for ten years 
'roni the date of ratification, which took place 
)n July 28th, 1930. 

"The general accejjtanee of the Optional 
Z'lause pi'oviding for the compulsory adjudi- 
•ation of certain issues was part of the system 
)f collective action for the preservation of 
)e;Ke established under the Covenant of the 
League. It is clear that the conditions as- 
sumed when the Optional Clause was accepted 
III not now exist, and that it would not be 
Hissible that the only part of the procedure 
II remain in force should be the provisions 
estricting the operations of the countries 
esisting aggression. 

"I am therefore directed to notify you that 
he Canadian Government will not regard their 
leceptance. of the Optional Clause as covering 
lisputes arising out of events occurring during 
he present war. 

'Tt is requested that tliis notification may 
le communicated to the Governments of all the 
states that have accepted the Optional Clause 



87 



and to the Kegistrar of the Permanent Couit 
of International Justice." 



There are printed below the texts of letters 
received by the Secretary General of the 
League of Nations from the Belgian and 
Netherlands Governments regarding the dec- 
larations made by the Governments of Aus- 
tralia, France, Great Britain, New Zealand, 
and the Union of South Africa concerning the 
acceptances by these Governments of the 
Optional Clause of the Statute of the Per- 
manent Court of International Justice.^" 

Belgium 
"(.Translatimi) 

"I have the honour to acknowledge the re- 
ceipt of your letters of September 13th, 19th, 
and 20th, 1939 (C. L. 141, 142, 143, 147, 148 
and 158. 1939. V) by which you were good 
enough to inform me of the communications 
from His Majesty's Governments, in the 
United Kingdom, in the Commonwealth of 
Australia, in New Zealand and in the Union 
of South Africa, from the Govermnent of the 
French Republic and from the Government 
of India, notifying you that they will not 
regard their acceptance of the Optional Clause 
of Article 36 of the Statute of the Permanent 
Court of International Justice as covering dis- 
putes relating to events which might occur 
during the present hostilities. 

"The Belgian Government, which has itself 
accepted the Optional Clause, takes note of 
these communications, w^hile reserving its own 
point of view." 

Netherlands 
"(Translation) 

"The Ministry of Foreign Affairs has the 
honour to acknowledge the receipt of various 
communications fi-om the Secretary-General 
concerning the acceptance of the Optional 
Clause of the Statute of the Permanent Court 



'" See the Bulletin of October 7, 1939 (Vol. I, No. 15), 
pp. 352-^54; of October 21, 1939 (Vol. I, No. 17), pp. 
422-424: and of November 4, 19.39 (Vol. I. No. 19), 
pp. 473-474. 



of International Justice by His Majesty's Gov- 
ernment in the United Kingdom, the Govern- 
ment of the French Republic, His Majesty's 
Governments in the Commonwealth of Aus- 
tralia, in New Zealand, and in the Union of 
South Africa, and the Government of India 
(C. L. 141, 142, 143, 147, 148, and 158. 1939.). 
"The Eoyal Government, in taking note of 
these communications, is obliged to state that, 
having itself accepted the Optional Clause, it 
reserves its point of view." 

POSTAL 
Parcel Post Agreement With Lithuania 

On January 5, 1940, the President approved 
and ratified the Parcel Post Agreement Be- 
tween the United States and Lithuania, signed 
at Kaunas on December 4, 1939, and at Wash- 
ington on December 28, 1939. The agreement 
will enter into force on February 1, 1940. 

BOUNDARY 

Convention Concerning Boundary Waters 
Between the United States and Canada 
(Treaty Series No. 548) 

A statement regarding the reference for in- 
vestigation, report, and recommendation of 
three questions relating to the waters of the 
Souris (Mouse) River to the International 
Joint Commission created by the provisions 



DEPARTMENT OF STATE BULLEtllf 

of article 7 of the Convention Concerning 
Boundary Waters Between the United States 
and Canada, signed on January 11, 1909, ap- 
pears in this Bulletin under the heading "In- 
ternational Conferences, Commissions, etc." 



Publications 



Department of State 

Diplomatic List, January 1940. Publication 1419. 11, 
83 pp. Subscription $1 a year; single copy 100. 

Shipowners' Liability (Sick and Injured Seamen) 
Convention 1936: Convention Between the United 
States of America and Other Members of the Inter- 
national Labor Organization. — Adopted by the Gen- 
eral Conference of the International Labor Organi- 
zation, Twenty-first Session, Geneva, October 24, 1936; 
proclaimed by the President September 29, 1939. 
Treaty Series No. 951. 14 pp. 50. 
Consular: Convention feetween the United States of 
America and Liberia. — Signed at Monrovia October 7, 
1938; proclaimed by the President November 30, 1939. 
Treaty Series No. 957. 9 pp. 50. 



Legislation 



Report Concerning Retirement and Disability Fund 
Foreign Service, Fiscal Year 1939: Message from the 
President of the United States Transmitting Report 
by the Secretary of State Showing All Receipts and 
Disbursements on Account of Refunds, Allowances, 
and Annuities for the Fiscal Tear Ended June 30, 1939. 
(H. Doc. 563, 76th Cong., 3d sess.) 4 pp. 50. 



For sale by the Superintendent of Documents, Washington, D. C— Price 10 cents Subscription price, ?2.7."> a yeHr 

PUBLISHED WEEKLY WITH THE APPEOVAL OF THE DIRKCTOR OP THE BORBAD OP THE BDDGHT 






THE DEPARTMENT OF STATE 



BULLETIN 



JANUARY 27, 1940 
Vol. II: No. J I — Publication 1 428 



Qontents 

Europe : page 

British reply to United States protest on treatment of 

the mails 91 

Protest to Great Britain on treatment of United States 

shipping 93 

Evacuation of American citizens from Soviet-occupied 

territory 95 

Switzerland : Death of the Chief of the Political Depart- 
ment 96 

Luxemburg: Birthday of the Grand Duchess .... 96 

The Near East: 

Egyptian censorship regulations 96 

Great Lakes-St. Lawrence Waterway Project ... 96 
Commercial Policy: 

The Reciprocal Trade Agreements or What?: Address 

by Assistant Secretary Grady 97 

The Role of the United States in Economic Reconstruc- 
tion: Address by Assistant Secretary Grady .... 101 
The Trade-Agreements Program: Address by Assistant 

Secretary Grady 105 

Traffic in Arms, Tin-Plate Scrap, etc.: 

Monthly statistics 110 

General: 

Passport statistics 122 

\OveT\ 




U.S.J!UPFR(NTFNnEKT OF DOCUMENTS 

^"PB 17 1940 



Foreign Service of the United States: Page 

Resignation of Joseph E. Davies as Ambassador to 

Belgium and Minister to Luxemburg 123 

Treaty Information: 
Navigation: 

Great Lakes-St. Lawrence Waterway Project. . . . 124 
Telecommunications : 

International Telecommunication Convention 

(Treaty Series No. 867) 125 

International Telephone Consulting Committee. . . 125 
Restriction of war: 

Convention for the Amelioration of the Condition of 
the Wounded and the Sick of Armies in the Field 

(Treaty Series No. 847) 125 

Education : 

ProcSs-Verbal Concerning the Application of Articles 
IV, V, VI, VII, IX, XII, and XIII of the Conven- 
tion of October 11, 1933, for Facilitating the Inter- 
national Circulation of Films of an Educational 

Character 125 

Refugees : 

Additional Protocol to the Provisional Arrangement 
of July 4, 1936, and to the Convention of February 
10, 1938, Concerning the Status of Refugees Com- 
ing from Germany 126 

Publications 126 



Europe 



BRITISH REPLY TO UNITED STATES PROTEST ON TREATMENT OF 

THE MAILS 



[Released to the press January 21] 

Following is a note from the British Foreign 
Office received by the American Embassy at 
London on January 17, 1940 : ^ 

"I have the honour to invite reference to your 
note No. 1730 of the 27th December ^ in which 
you drew attention to certain specific instances 
of the removal from British, United States and 
other neutral ships, and of the examination by 
the British censorship authorities, of United 
States mail addressed to neutral countries and 
of sealed letter mail despatched from the United 
States. You also stated that your Government 
admitted the right of His Majesty's Govern- 
ment to censor private mails originating in or 
destined for the United Kingdom or private 
mails which normally pass through the United 
Kingdom for transmission to their final desti- 
nation, but that in view of The Hague Conven- 
tion No. 11, your Government could not admit 
the right of the British authorities to interfere 
with United States mail in United States or 
other neutral ships on the high seas or to censor 
mail in ships wliich have involuntarily entered 
British ports. 



' The Department of State was informed on January 
20, 1940, by the American Embassy at London that 
the British Foreign Office was releasing the text of 
this note for publication on January 21, 1940. The 
^Department accordingly has made the text available 
here. 

' See the Bulletin of January 6, 1940 (Vol. II, No. 
28), p. 3. 



"Two. His Majesty's Government in the 
United Kingdom are happy to note that there 
is substantial agreement between them and the 
United States Government as regards the rights 
of censorship of terminal mails and that the 
only point of difference seems to lie in the inter- 
pretation of The Hague Convention in regard 
to correspondence in ships wliich are diverted 
into British ports. 

"Three. The view of His Majesty's Govern- 
ment as regards the examination of mail in 
ships on the liigh seas or involuntarily entering 
British ports is that the immunity conferred by 
Article I of The Hague Convention No. 11, 
which in any case does not cover postal parcels, 
is enjoyed only by genuine postal correspond- 
ence, and that a belligerent is therefore at lib- 
erty to examine mail bags and, if necessary, 
their contents in order to assure himself that 
they constitute such correspondence and not 
articles of a noxious character such as contra- 
band. This view must, in the opinion of His 
Majesty's Government, be regarded as estab- 
lished by the practice during the war of 1914r- 
1918, when none of the belligerents accepted the 
view that Article I of this convention consti- 
tuted an absolute prohibition of interference 
with mail bags, and the general right to search 
for contraband was regarded as covering a full 
examination of mails for this purpose. Refer- 
ence to the correspondence between the United 

91 



92 



DEPARTMENT OF STATE BUIXETIN 



States Government and His Majesty's Govern- 
ment in 1916 shows that at that date the United 
States admitted in principle the right of the 
British authorities to examine mail bags with 
a view to ascertaining whether they contained 
contraband. 

"Four. It will be appreciated that the letter 
post as well as the parcel post can be used to 
convey contraband; and that even though let- 
ters may be addressed to a neutral country, their 
ultimate destination may be Germany. For 
instance the letter mails may be used to convey 
securities, cheques or notes or again they may 
be used to send industrial diamonds and other 
light contraband. It must be remembered that 
the limit of size, weight and bulk of letters sent 
is sufficient to allow the passage of contraband 
of this nature which may be of the utmost value 
to the enemy. It was presumably for this rea- 
son that the United States Government in their 
note of the 24th May 1916 => stated that 'the 
Government of United States is inclined to the 
opinion that the class of mail matter which in- 
cludes stocks, bonds, coupons and similar securi- 
ties is to be regarded as of the same nature as 
merchandise or other articles of property and 
subject to the same exercise of belligerent rights. 
Money orders, cheques, drafts, notes and other 
negotiable instruments which may pass as the 
equivalent of money are, it is considered, also 
to be classed as merchandise.' It is clear that 
in the case of merchandise. His Majesty's Gov- 
ernment are entitled to ascertain if it is contra- 
band intended for the enemy or whether it pos- 
sesses an imiocent character, and it is impossible 
to decide whether a sealed letter does or does 
not contain such merchandise without opening 
it and ascertaining what the contents are. It 
would be difficult to prevent the use of the 
letter post for the transmission of contraband 
to Germany, a use which has been made on an 
extensive scale, without submitting such mail 
to that very examination to which the United 
States Government is taking objection. 



"Five. The Allied Governments in their cor- 
respondence with the United States Govern- 
ment in 1916 also had occasion to demonstrate 
the extent to which the mails were being em- 
ployed for the purpose of conveying contraband 
articles to Germany. The position in this re- 
spect is identical today, and, in this connexion, 
I have the honour to invite reference to an aide 
memoire dated the 23rd November, 1939,* wliich 
was communicated to a member of your sti<fif 
and in which clear evidence was given of the 
existence of an organised traffic in contraband 
on a considerable scale between German sym- 
pathisers in the United States and Germany 
through the mail. An article in a newspaper 
published in German in the United States, 
which was handed to him at the same time, 
showed that an organisation existed in United 
States territory for the purpose of facilitating 
this traffic. 

"Six. Quite apart from transmission of con- 
traband the possibility must be taken into ac- 
count of the use of the letter post by Germans 
to transmit military intelligence, to promote 
sabotage and to carry on other hostile acts. It 
is in accordance with international law for bel- 
ligerents to prevent intelligence reaching tho 
enemy which might assist them in hostile opera- 
tions. 

"Seven. I uiay add that in another respect, 
namely the destruction of mails on board ships 
sunk by the illegal methods of warfare adop'^ed 
by Germany, the situation today is identical 
with that which existed in the war of 1914^ 
1918. Between the 3rd September, 1939 and 
the 9th January, 1940 the German naval au- 
thorities have destroyed without previous warn- 
ing or visit, in defiance of the rules of war and 
of obligations freely entered into, the S. S. 
Yorkshire, the S. S. Dti/nbar Castle, the S. S- 
Simon Bolivar and the S. S. TeruTcuni Maru, all 
of which are known to have been carrying mails 
to or from neutral countries, with as little re- 
gard for the safety of the neutral correspond- 
ence on board as for the lives of the inoffensive 



"See Foreign Relations of the United States, 1916, 
Supplement : The World War, pp. 604-608. 



* Not printed. 



JANITAET 27, 1940 

passengers and crew. Yet His Majesty's Gov- 
ernment are not aware that any protest regard- 
ing this destruction of postal correspondence 
has been made to the German Government. 

"Eight. In contrast to tliis reckless and indis- 
criminate destruction of neutral property the 
examination conducted by His Majesty's Gov- 
eriuuent of the mails which are under discus- 
sion does not involve innocent mail being either 
confiscated or destroyed. In accordance with 
the terms of The Hague Convention mail found 
in ships which have been diverted to British 
ports is forwarded to its destination as soon as 
possible after its innocent nature is established. 
In no case is genuine correspondence from the 
United States seized or confiscated by His 
Majesty's Government. 

"Nine. For the above reasons His Majesty's 
Government find themselves unable to share the 
views of the United States Government that 
their action in examining neutral mail in British 



93 

or neutral shipping is contrary to their obliga- 
tions under international law. They are, how- 
ever, desirous of conducting this examination 
with as little inconvenience as possible to for- 
eign nations, and you may rest assured that 
every effort has been and will be made to reduce 
any delays which may be occasioned by its en- 
forcement. If the United States Government 
have occasion to bring any specific complaints 
to the notice of His Majesty's Government con- 
cerning delays alleged to be due to the examina- 
tion of these mails. His Majesty's Government 
will be happy to examine these complaints in as 
accommodating and friendly a spirit as possible. 
While the task of examination is rendered heavy 
as a result, it is believed that arrangements 
which have been made to deal with this corre- 
spondence will ensure that all genuine corre- 
spondence will reach its destination in safety 
and with reasonable despatch." 



■f -f -f -f -f -f -f 



PROTEST TO GREAT BRITAIN ON TREATMENT OF UNITED STATES 

SHIPPING 



( Released to the press January 22) 

Following is the text of an aide-memoire 
handed to the British Ambassador at the De- 
partment of State on January 20, 1940 : 

"This Government feels constrained to ex- 
press its serious concern at the treatment by the 
British authorities of American shipping in the 
Mediterranean area, and particularly at Gibral- 
tar. It has already made clear its position as 
regards the legality of interference by the Brit- 
ish Government with cargoes moving from one 
neutral country to another, in its Ambassador's 
' Note number 1569 of November 20, 1939. In 
addition, it now regrets the necessity of being 
forced to observe not only that British inter- 
ference, carried out under the theory of con- 
traband control, has worked a wholly unwar- 
rantable delay on American shipping to and 



from the Mediterranean area ; but also that the 
effect of such action appears to have been dis- 
criminatory. 

"Since ample time has elapsed to permit the 
setting up of an eflScient system of control, it 
would seem that the present situation can no 
longer be ascribed to the confusion attendant 
on early organization difficulties. 

"From information reaching this Govern- 
ment it appears that American vessels proceed- 
ing to neutral ports en route to or from ports 
of the United States have been detained at Gi- 
braltar for periods varying from nine to eight- 
een days; that cargoes and mail have been re- 
moved from such ships; that official mail for 
American missions in Europe has been greatly 
delayed; that in some instances American ves- 
sels have been ordered to proceed, in violation 
of American law, to the belligerent port of 



94 



DEPARTMENT OF STATE BXTLLETIN 



Marseilles to unload cargoes, and there to ex- 
perience further delays. It is further reported 
that cargoes on Italian vessels receive more fa- 
vorable consideration than similar or equivalent 
cargoes carried by American ships, and that 
Italian vessels are permitted to pass through 
the control with far less inconvenience and 
delay. 

"There is attached a list of American vessels 
en route to neutral ports detained by the British 
Contraband Control during the period Novem- 
ber 15th to December 15th, from which it will 
be seen that the average delay imposed has 
amounted to approximately 12.4 days. From 



information in possession of this Government, 
it is established that Italian vessels detained 
during the same period were held for ari aver- 
age delay of only 4 days. 

"This Government must expect that the 
British Government will at least take suitable 
and prompt measures to bring about an im- 
mediate correction of this situation. It will 
appreciate receiving advices that the situation 
has been corrected. 

"Enclosure: List of American vessels, as 
stated. 

"Department of State, 

"Washington, January 20, 1940." 



[Enclosure] 

American Vessels Reported to the Department of State To Have Been Detained by the British Block- 
ade Control in the Mediterranean for Examination op Papers and Cargo — November 15-Decembeb 
15, 1939. 

S. S. Express American Export Line — general cargo — detained by the British authorities at 

(November 12-21) 10 days. Malta. Held pending receipt of instructions from the British Govern- 

ment. Had remaining on board 420 tons general cargo for Greece, Tur- 
key, and Rumania. Free to depart November 21 in view of declaration 
furnished. Departed November 23. 

S. S. Nishmaha Lykes Bros. S. S. Co. — cotton, paraffin, beef casings — detained by the British 

(November 11-23) 13 days. authorities at Gibraltar. Large number of items of cargo seized. Free to 

depart after November 17 on captain's undertaking to unload at Barcelona 
cargo for that port, and to proceed to Marseilles for unloading seized 
items. 

S. S. Examiner American Export Line — general cargo, oil, grease, rubber tires, cotton goods — 

(November 17-December 4) 18 detained by the British authorities at Gibraltar. 11 bags first class mail 

days. removed. 

S. S. Excambion American Export Line — general cargo, oil, films — detained by British author- 

(November 20-27) 8 days. ities at Gibraltar. 

S. S. Exmoulh American Export Line — general cargo — detained by British authorities at 

(November 22-December 6) 14 Gibraltar. 

^' days. 

S. S. Extavia American Export Line — mixed cargo — detained by the British authorities at 

(November 29-December 14) 16 Gibraltar. Ship free to depart on giving Black Diamond guarantee in 

days. respect to one item of cargo. 

S. S. Exochorda American Export Line — mixed cargo, burlap, tinplate, tobacco, oil — detained 

(December 5-13) 9 days. by the British authorities at Gibraltar. 

S. S. Exmoor American Export Line — mixed cargo — detained by the British authorities at 

(December 7-15) 9 days. Gibraltar. 

S. S. Explorer American Export Line — mixed cargo — detained by the British authorities at 

(December 9-23) 15 days. Gibraltar, 



JANUARY 27, 1940 

EVACUATION OF AMERICAN CITIZENS FROM SOVIET-OCCUPIED 

TERRITORY 



95 



[Released to the press January 24] 

Mr. Angus Ward, chief of the consular sec- 
tion of the American Embassy in Moscow, after 
3 weeks in Lwow consulting American citizens 
who were caught there and arranging for 
Soviet exit visas for them through the Embassy 
at Moscow, succeeded in having 30 such Ameri- 
can citizens leave by train on January 20, for 
the frontier station of Sniatyn (U. S. S. K.) 
and Oraseni (Rumania). 

Arrangements for them to enter Rumania 
without Rumanian visas were made with the 
Rumanian Government through the good offices 
of the American Legation at Bucharest. 

The American Legation at Bucharest reports 
that the following American citizens passed 
the Soviet frontier from Sniatyn to Oraseni on 
January 21, 1940, and reached Bucharest on the 
afternoon of January 22 : 

Mrs. Marion Wolf Bernhard. 

Katherine Boggan. 

Eleanor Casimira Czaplinska. 

Clara Dienst. 

Fannie Gnendelman. 

Frank Grudzinski. 

Joseph Aloysius M. Elmiecik. 

Joseph John Kozak. 

Sallie Grobel Lipshutz. 

Esther Latner. 

Theodore Makar. 

Vitus Joseph Manicki. 

Sarah Moldauer. 

Nellie Nowicki and minor son, Edward. 

Eugenia Orlan and minor daughter, Alice. 

Andrew Paprin. 

Wanda Peter. 

Weronika Romanowska and minor daughter, 

Florence. 
Jacob Joseph Spanier. 
Katherine Swartz. 
Boleslaw Joseph Sztuczko. 
Bertha Messier Tepper. 
Arthur L. Waldo-StefansM, 
Stefania Waldo-Stefanski. 



Francis Witowiki. 
George Witkowski. 
John Yowtz. 

The names given above are believed to be the 
same persons whose names and addresses are 
given below : 

Bernhard, Marion, Pittsburgh, Pa. 
Buggan, Katherina, 165 Eighteenth Street, 

Pittsburgh, Pa. 
Czaplinska, Eleanor Casimira, care of Sisters 

of the Holy Family of Nazareth, Grant 

and Frankfort Ave., Torresdale, Pa. 
Dienst, Clara, New York, N. Y. 
Gnendelman, Fannie, 2095 Morris Avenue, 

Bronx, N. Y. 
Grudzinski, Frank, 410 Grove Street, Jersey 

City, N. J. 
Kmiecik, Joseph Aloysius M., 415 North 

Brookfield St., South Bend, Ind. 
Kozak, Joseph John, 242 Virginia Avenue, 

Shenandoah, Pa. 
Lifschutz, Sallie Grabel, 317 East Thirteenth 

Street, New York, N. Y. 
Lotner, Esther, 5802 Foxall Street, Brook- 
lyn, N. Y. 
Makar, Theodore, 344 Randolph Street, 

Youngstown, Ohio. 
Masnicki, Vitus Joseph, 250 East Jersey 

Street, Elizabeth, N. J. 
Moldauer, Sarah, 2617 Wabansia Avenue, 

Chicago, 111. 
Nowicki, Nellie, and minor son, Edward, 2361 

Thirty-eighth Street, Astoria, L. I., N. Y. 
Orlan, Eugenia, and minor daughter, Alice, 

8531 One Hundred and First Street, 

Richmond Hill, L. I., N. Y. 
Paprin, Andrew, Notre Dame, Ind. 
Pater, Wanda, Chicago, 111. 
Romanowska, Weronika, and minor daugh- 
ter, Florence, 3226 West Thomas Street, 

Chicago, 111. 
Spanier, Jacob Joseph, Notre Dame, Ind. 
Swartz, Katherine, 717 Broadway, McKees 

Rocks, Pa. 
Sztuczko, Boleslaw Joseph, 1118 Noble Street, 

Chicago, 111, 



96 



DEPAKTMENT OF STATE BULLETIN 



Tepper, Bertha Messier, 526 North Eighth 

Street, Kichmond, Va. 
Waldo-Stefanski, Arthur L., 1427 North 

Hayne Avenue, Chicago, 111. 
Waldo-Stefanski, Stefania, 1427 North Hayne 

Avenue, Chicago, 111. 
Witowski, Francis, Notre Dame, Ind. 
Witkowski, George, New York, N. Y. 
Yowtz, John, 2115 Caniff Avenue, Ham- 

tramck, Mich. 

-f -f ^ 



SWITZERLAND: DEATH OF THE CHIEF 
OF THE POLITICAL DEPARTMENT 

[Released to the press January 23] 

The Secretary of State on January 23 in- 
structed the American Minister to Switzerland, 
Mr. Leland Harrison, to convey to the Swiss 
Government as from the President and himself 
the following message : 

"We learn with deep sorrow of the death of 
Giuseppe Motta. Patriot and statesman, for 
twenty-five years his voice was the voice of 
Switzerland, and it was the voice of wisdom, 
moderation, and tolerance. His loss will be felt 
throughout the world where ideals of freedom 
and peaceful cooperation between nations pre- 
vail." 



The Near East 



EGYPTIAN CENSORSHIP 
REGULATIONS 

[Released to tlie press January 22] 

The Egyptian Foreign Office has informed the 
Department of State through the American 
Legation at Cairo that many telegrams destined 
for Egypt do not fulfill the required conditions 
laid down by the Censorship Department of the 
Egyptian Government. It has accordingly sug- 
gested, in order to avoid delay in the handling 
of telegrams sent to Egyptian addresses, that the 
following list of errors which have been noted be 
brought to the attention of persons in the United 
States sending such telegrams : 

(1) The use of a telegraphic or abbreviated 

address 

(2) The absence or abbreviation of the name of 

the sender 

(3) The use of figures or telegraphic codes other 

than in certain limited cases which are 
specified 

(4) The use of languages other than Arabic, 

English, or French, the only languages 
the use of which is at present authorized 

(5) The use of brief and obscure terms as well 

as allusions made to movements of ships 
at sea, with mention of the dates. 



LUXEMBURG: BIRTHDAY OF THE 
GRAND DUCHESS 

[Released to the press January 23] 

Following is a message sent from the Presi- 
dent to the Grand Duchess Charlotte of Luxem- 
burg: 

"January 23, 1940. 

"I send Your Royal Highness cordial greet- 
ings upon this anniversary of your birth and 
my sincere wishes for your personal welfare and 
happiness and the continued peace and pros- 
perity of your country. 

Franklin D. Roosevelt" 



GREAT LAKES-ST. LAWRENCE 
WATERWAY PROJECT 

A statement by the Secretary of State on the 
arrival in Washington on January 21, 1940, of 
the Canadian delegation to continue negotia- 
tions for a new treaty providing for develop- 
ment of the Great Lakes-St. Lawrence Water- 
way Project and a joint statement by the United 
States and Canadian delegations made at the 
close of conversations on January 24 appear 
in this Bulletin under the heading "Treaty 
Information." 



THE RECIPROCAL TRADE AGREEMENTS OR WHAT? 

Address by Assistant Secretary Grady ^ 



[Released to the press January 23] 

111 formulating a sound commercial policy 
for this country as well as for any other country 
two important facts must be taken into account. 
The first is that there is a close connection be- 
tween export trade and domestic business ac- 
tivity; the second is that export trade is in the 
long run largely dependent on imports. 

The significance of foreign markets to do- 
mestic prosperity may be seen by comparing 
the figures of industrial production and exports 
of finished manufactures for the period from 
1922 to the present time. It will be found that 
the years in which there were marked increases 
in such exports were also for the most part years 
in which industrial production increased the 
most ; the years in which industrial production 
declined were years in w^hich such exj)orts also 
declined, or increased relatively little. 

The dependence of exports on imports is an 
elementary fact of economics. In order to pur- 
chase American exports, foreign countries must, 
of course, be able to obtain dollars for payment. 
Tliere are a number of ways in which they come 
mto possession of dollars for such use, but a 
major source of dollar exchange for foreign 
countries consists in the sale to us of their 
goods. Measures affecting such sales affect our 
export trade. 

The benefits to be derived from an exchange 
of imports for exj^orts is fundamentally of the 
same nature as those derived from trade at 
home. Trade, whether foreign or domestic, per- 
• mits certain regions to produce goods which 
they are best fitted to produce and to exchange 



'Delivered at the banquet of the Texarkana Junior 
Chamber of Commerce, Texarkana, Tex., and broadcast 
over Station GST and the Mutual network, January 
23. 1940. 

206509 — 40 2 



them for other goods which can be produced 
elsewhere at relatively lower cost. Through 
trade, real income in terms of consumable goods 
is increased for all concerned. 

In the period following the World War, that 
is, in the decade of the twenties and on into the 
first part of the decade of the thirties, we pur- 
sued a commercial policy which had little re- 
gard for basic principles of international trade. 
The word "policy" is hardly an appropriate 
term to use in this connection. "Policy" implies 
a plan, a set of basic principles, and an objec- 
tive. We had none of these. Our so-called 
policy was merely a reflection of the efforts of 
si:)ecial-interest groups to gain their particular 
ends irrespective of cost to the consumer or of 
the effect on other producers or on our relations 
with foreign countries. 

A major depression of international scope is 
due in a large part to instability in international 
price relationships. One of the chief means 
by which fundamental adjustments in such price 
relationships may be brought about is the move- 
ment between countries of goods. Goods tend 
to move from one country to another with a 
relatively high price level, tending to raise 
prices in the former relative to those in the 
latter and thus to decrease the price spread be- 
tween them. The normal adjustments of inter- 
national price relationships after the war were, 
however, partly obstructed by the rise of trade 
barriers. The burden of adjustments fell in a 
large part therefore on international move- 
ments of capital. Our exports of capital helped 
to stimulate prices abroad relative to our own 
prices, and thus American goods were attracted 
by foreign prices and a lively export trade de- 
veloped. These loans provided the dollar ex- 
change required for continued export sales. In 

97 



98 



DEPARTMENT OF STATE BULLETIN 



these circumstances, it was possible for a time 
to have our cake and eat it too. The home 
market was reserved for home products, and at 
the same time foreign markets for American 
products were expanded. 

The Americans who were investing money 
abroad were in effect supporting the foreign 
markets of the American exporters. The 
amount of interest and dividends and amortiza- 
tion which the foreign debtors had to pay to 
their American creditors was increasing each 
year. This meant that in order to maintain a 
given annual rate of growth in American ex- 
port trade, the annual export of American capi- 
tal had to increase at an accelerating rate. A 
day of reckoning was, of course, at hand. In 
the meantime, however, a thriving export trade 
acted as a potent stimulus to domestic business 
activity. Employment increased and so did 
wages. There was consequently a great in- 
crease in domestic purchasing power. By about 
1929, the domestic demand for goods was out- 
running the capacity of American plants and 
equipment to produce them. Since, owing to 
high tariffs, the demand of domestic consumers 
could not be met in a large measure by imports, 
it required a further expansion in home plant 
and capital equipment. This in turn created an 
intense demand for investment at home. Do- 
mestic interest rates rose, and capital which had 
been moving abroad was kept at home. 

The decline in American exports of capital in 
1929 left our foreign debtors in a serious pre- 
dicament. Since they had to meet, by then, 
heavj' financial obligations either by exporting 
to us gold or turning over funds in their country 
to the foreign account of Americans instead 
of by increased borrowing as was formerly the 
case, money was drawn out of industrial cir- 
culation in the debtor countries, and their prices 
slumped. This meant also a decline of profits 
in such countries, resulting in losses and bank- 
ruptcy and in growing unemployment. Pur- 
chasing power in the debtor countries shrank, 
and, owing to a falling off in our loans to them, 
their supplies of dollar exchange were curtailed. 
Their purchases of American products, there- 
fore, greatly declined, resulting in unemploy- 



ment and depression in our export industries 
and finally in our domestic business in general. 
Thus the tariff-supported business boom, of the 
late 20's in the United States resulted in a busi- 
ness recession in the autunm of 1929 and pre- 
pared the way for a major economic depression. 

The situation by 1930 should have indicated 
a need for reconsidering our position regarding 
foreign economic relations and the formulation 
of some progi-am in that connection, but Con- 
gress, still motivated by pressure from interests 
seeking further tariff increases at the expense 
of the general welfare, proceeded with the en- 
actment of excessively high tariff legislation. 
By the time the crisis occurred in the autumn 
of 1929, this legislation was already well under 
way. It is hard to imagine any piece of legis- 
lation less thought out, less planned, less pur- 
poseful, or more chaotic than the Hawley- 
Smoot Tariff of 1930. It was launched by a 
special session of Congress called by President 
Hoover for June 1929 for the purpose of mak- 
ing limited revisions in the tariff to cure specific 
ills of agriculture. Logi'olling, favoritism, and 
intrigue resulted, and the special session merged 
into the following regular session. The outcome 
was a general upward revision of the tariff. 
The manufacturing industries received a large 
share of the free-for-all handouts, leaving the 
farmers and workers the prospects of increased 
living costs. 

The severity and long duration of the world- 
wide depression was in part due to the Tariff 
Act of 1930. At the beginning of 1930, it ap- 
peared that the depression would be only of 
short duration. The export of capital increased, 
and a considerable rise took place in the stock 
markets. In the spring, production was declin- 
ing at a slower pace in most countries. In the 
United States there was more than a seasonal 
improvement. Up until the summer of 1930, 
manufacturing countries other than the United 
States experienced little depression compared 
with those producing crude foodstuffs and raw 
materials. This brief revival of business came 
to an end just about the time, June 1930, when 
the Hawley-Smoot Tariff Act came into effect. 
Not stoppmg to think or to plan, without a 



JANUAKY 27, 1940 



99 



policy to guide us, we stepped in the wrong di- 
rection and plunged downward into the abyss of 
an economic depression. 

After the change in administration in 1933, 
our foreign trade relations were reviewed in the 
light of existing circumstances, and a construc- 
tive trade program was formulated to facilitate 
economic recovery on tlie basis of sound eco- 
nomic principles. It was generally recognized 
by 1933 that excessive protectionism had been 
in a large measure responsible for the world- 
wide economic collapse and that our tariff was 
in need of downward adjustments. 

There were several waj-s in which these ad- 
justments could have been effected. One was 
by unilateral tariff revision. This method of 
approach, however, would have dealt with only 
one side of the problem. Partly as direct re- 
taliation against our high duties and partly as 
a result of the depression, high barriers against 
international trade had been erected also by 
other countries, and many countries had re- 
sorted to measures or systems of trade which 
favored some countries and discriminated 
against others. There was a need for a general 
lowering of trade barriers throughout the 
world, and the restoration of trade on the basis 
of equal opportunity to all traders. This was 
necessary in order that an improvement might 
be obtained abroad in the market opportunities 
for our export products and in order that the 
fullest benefits might be realized as a result of 
an adjustment in our tariffs. 

A multilateral agreement offered a means, 
of course, for dealing with both aspects of the 
problem. A conference of representatives of 
various countries might have been called for 
the purpose of reaching an agreement in regard 
to the lowering of tariff barriers and the pro- 
vision of nondiscriminatoiy treatment. Owing 
to the special problems and considerations in- 
^volved in the trade relations between one coun- 
try and another, any formula of general 
application which might have been arrived at 
by this method of approach would have been 
exceedingly limited. 

The trade program, which was adopted after 
careful consideration of all possible alterna- 



tives, is provided for in the Trade Agreements 
Act of 1934. It is based on a system of bilateral 
agreements and the provision therein for the 
granting of most-favored-nation, that is, non- 
discriminatory treatment. This system, by 
making it possible to deal with special problems 
involved in our relations with individual coun- 
tries, offers an opportunity for obtaining more 
important results than could be obtained in a 
multilateral undertaking, but as the number of 
agreements increases, their scope assumes a mul- 
tilateral character. 

Our counti-y has prospered under the trade- 
agreements program. At present, agreements 
are in effect with 20 countries, covering 60 per- 
cent of our foreign trade. In the period from 
1934-1935 to 1938-1939 (involving estimates for 
1939 on a 10-month basis) our exports increased 
40 percent; those to agreement countries in- 
creased 50 percent, whereas those to nonagree- 
ment countries increased only 28 percent. In 
1938-1939, the index of industrial production 
stood at 95, compared with 84 in 1934-1935. 
The bidex of employment in 1938-1939 stood at 
93, as compared to 84 in 1934-1935. In the 
period from 1934-1935 to 1938-1939, agricul- 
tural income increased 15.2 percent. 

Not only have foreign markets for American 
products been expanded, but, owing to the in- 
creased employment which growing export 
trade gives to our workers and industries, the 
domestic market has also become more active. 
As the result of increased activity in business 
at home arising in part from larger export 
sales abroad, it has been possible under the 
trade-agreements program to effect adjustments 
in our tariffs without injuring the domestic in- 
dustries concerned. 

In view of the war in Europe, our need for 
continuing sound commercial policy is greater 
than ever. Our trade and industry cannot, of 
course, escape the effects of the war. However, 
in encouraging and strengthening normal trade 
relations, trade agreements will tend to mini- 
mize the economic dislocations resulting from 
war conditions. Furthermore, no approach to 
a satisfactoi'y and permanent peace after the 
war has ended can be made without regard to 



100 



DEPARTMENT OF STATE BXJLLETIN 



the economic factors which govern relations of 
countries to each other. Economic relations 
will have to be adjusted to insure friendly and 
cooperative relations among all nations. The 
task of statesmanship will be to endeavor so to 
guide affairs as to promote the reestablishment 
of trade on a sound basis and to avoid the mis- 
taken and short-sighted policies which will lead 
from a possible temporary post-war stimula- 
tion into renewed economic depression. Our 
trade-agreements program should be kept in 
fullest possible effective operation as an essen- 
tial aid to this future task of statesmanship. 

The question of whether the Trade Agree- 
ments Act is to be extended for another 3-year 
period is now before the Congress. A large 
part of the opposition to extension arises from 
interests who have become accustomed to ex- 
cessive tariff relief. Failing to associate their 
own welfare with that of the Nation as a whole, 
they naturally overrate the value of their dole 
and want an opportunity to get it increased. 
However, in view of the outstanding national 
benefits obtained under the Trade Agreements 
Act and the obviously increased need at this 
time for trade agreements, our opponents may 
despair of attempting to kill the program out- 
right. They may seek, however, to gain their 
end by more subtle measures; namely, by get- 
ting the act amended in such a way as to 
cripple it and to render the program ineffectual. 

Among the measures which would obtain this 
end might be the limitation of changes in im- 
port duties to those made in accordance with 
the cost-of-production formula and the require- 
ment of Senate or congressional approval of 
trade agreements. 

The cost-of-production formula would pro- 
hibit the change in any duty below a rate which 
would measure the difference in cost of produc- 
tion at home and abroad. It has a veiled ap- 
pearance of fairness and moderation, but if it 
were possible to follow it with exactness and 
consistency, it would lead to the most extreme 
sort of high protectionism. The very existence 
of trade, whether domestic or foreign, is de- 
pendent on differences in cost of production. 
The fact that we have international trade indi- 



cates that our costs are lower than in foreign 
countries with respect to the commodities which 
we export and higher with respect to those 
which we import. In the absence of such differ- 
ences there would be little trade. 

Application of the formula is, furthermore, 
impracticable. Complete cost data can seldom 
be obtained. As pointed out by the Senate 
Committee on Finance in its report on the reso- 
lution for the renewal of the Trade Agreements 
Act of 1937, the time required for cost-of-pro- 
duction investigations would effectively ob- 
struct the conclusion of agreements. Experience 
has shown, it was stated in the report, that cost- 
of-production findings "cannot be completed 
short of months, sometimes a year." "In view 
of the many investigations that would have to 
be conducted simultaneously if every proposed 
change of duty in an agreement were to be pred- 
icated upon such an inquiry," the report fur- 
ther stated, "it is obvious not only that the re- 
sources of the Government would be swamped 
but that any possibility of concluding an agree- 
ment would be indefinitely delayed." 

Whenever available, cost-of-production data 
are, of course, taken into account in the adjust- 
ment of tariff rates under the Trade Agi-ee- 
ments Act. Other factors are also considered, 
such as the size of the imports in relation to 
domestic production, comparability of the im- 
ported and domestic products as to type and 
quality, seasonal factors, and a great many 
others. 

As to the proposal that trade agreements re- 
quire Senate or congressional approval, the 
past experience of this country demonstrates 
conclusively why the adoption of such a re- 
quirement would almost certainly put an end 
to the trade-agreements program. In the whole 
history of the United States only tliree recipro- 
cal tariff treaties requiring Senate ratification 
have been put into effect. All of these were of 
a special character and with countries with 
which we had close political or geographical 
ties, Canada in 1854, Hawaii in 1875, and Cuba 
in 1902. Although 10 other reciprocal treaties 
were negotiated under the general treaty-mak- 
ing powers of the Executive from 1844 to 1902, 



JANUARY 2 7, 1940 

not a single one of them became effective. The 
Tariff Act of 1897 contained specific authoriza- 
tion to the Executive to negotiate reciprocal 
trade treaties with Senate ratification and con- 
gressional approval. Twelve treaties were 
negotiated under this authorization, but not a 
single one came to a vote in the Senate. 

Trade agreements fall into the category of 
Executive agreements as distinct from treaties. 
From the point of view of constitutional law, 
the validity of Executive agreements entered 
into under the authority of Congi-ess but not 
subject to Senate ratification is clearly estab- 
lished by precedent and judicial decision. This 
Government has from its earliest days entered 
into hundreds of such agreements covering a 
broad field of matters such as commercial and 
consular relations, patent, trademark, and 
copyright protection, postal conventions, navi- 
gation, radio and aviation arrangements, and 
the settlement of claims. The validity of such 



101 

agreements has never been questioned by the 
courts, but in every case in which such an 
agreement has come before the courts it has 
been given full force and effect. 

The question of keeping the trade-agree- 
ments program alive and in effective operation 
is a question involving the future welfare of 
the Nation as a whole and our influence in 
favor of enduring world peace. The Trade 
Agreements Act has provided us with a com- 
mercial policy based on sound economic prin- 
ciples, with the objective of national prosiDerity, 
and with a i)lan and method for attaining it. 
The progi-am was devised to help to rescue us 
from an international situation of economic 
despair. It has been tested and has been foimd 
effective. It is the basis for hope that world 
economic relations may be restored to a normal 
and friendly basis. Without it, what would 
our prospects for the future be? 



-♦■ -f ■♦■ -f -f + -f 



THE ROLE OF THE UNITED STATES IN ECONOMIC 
RECONSTRUCTION 

Address by Assistant Secretary Grady « 



[Released to the press January 25] 

The trade agreements entered into under the 
authority of the Trade Agreements Act of June 
1934, subsequently extended until June of this 
year, have a twofold objective. One is to clear 
international trade channels of obstructions, 
such as excessive tariffs, quotas, exchange con- 
trol, and various forms of bilateralistic trade 
restrictions, in order that the normal flow of for- 
eign commerce may be restored and increased. 
The other is to provide, through assurances of 
unconditional most-favored-nation treatment, 
for participation in world commerce on the basis 
of equal opportunity. We seek these objectives 

' Delivered at the Nineteenth Annual Foreign Affairs 
School, Agassiz House, Cambridge, Mass., January 25, 
1940. 



in commercial agreements with individual for- 
eign countries, but as the number of countries 
with which we enter into trade agreements in- 
creases and as their beneficial effects make them- 
selves felt, the way is made easier for a return 
to these objectives by other countries generally, 
in their relations with each other. 

This means, for instance, that countries rich 
in certain economic resources but without great 
potentialities in other lines will be in a better 
position to make the most of their advantages 
and concentrate their activities in the production 
of materials for which they are best equipped, 
for sale to the rest of the world in exchange for 
the products which they need but are not well 
adapted for manufacturing. It means that in- 
dustrial countries will be able to develop to a 



102 



DEPARTMENT OF STATE BULLETIN 



fuller extent their economic potentialities and 
find larger markets for their export surpluses. 
It means, furthermore, that access of any coun- 
try to world markets and world supplies of raw 
materials will depend more upon its ability to 
compete for them against other countries on a 
purely economic basis and less on preferences 
and discriminations which lead to international 
friction, intrigue, and open conflict. 

Adherence to the economic principles on 
which the trade -agreements program is based 
will mean that political boundaries will come 
to present less of an economic problem to na- 
tions seeking their livelihood in an international 
community, and that such boundaries, being less 
of an obstacle to trade, production, and higher 
standards of living, will become more stable and 
secure. Thus peoples living in an area with 
common traditions and common political and 
cultural institutions will find it easier to main- 
tain frontiers within which they are free to 
preserve and express national cultural values. 

The economic institutions on which modern 
standards of living are based are world-wide in 
scope and function on an international scale. 
No nation, not even the United States, can find 
its livelihood entirely within its frontiers. Do- 
mestic supplies of essential materials may be 
conserved by export embargoes and by limiting 
consumption. Artificial substitutes may be 
found for some of those which are lacking. 
Materials which must be obtained abroad may 
be imported and stored for use in emergencies. 
But these emergency measures do not wholly 
eliminate the need for imports, while on the 
other hand they involve new restrictions against 
trade, new obstacles in the way of free access to 
world supplies of raw materials. Thus these 
restrictions intensify the struggle for control 
over world markets and raw-material sources 
and result in further frictions, discriminations, 
and retaliations and in the increasing aggrava- 
tion of international relations. 

General economic nationalism would mean 
that nations would normally function on a basis 
of economic control such as that usually asso- 
ciated with war. Indeed a number of countries 
were practically doing so even before the out- 



break of hostilities last September. Under 
such controls democracy would necessarily give 
way to dictatorship, capable of secretive and 
rapid maneuvering; considerations of social 
welfare would be subordinated to military con- 
siderations ; real income, as measured by the out- 
put of goods for constructive human uses, would 
be drastically curtailed; and nations would 
struggle for a precarious and meager existence. 

The tendency toward economic nationalism 
which failed to be checked in the first post-war 
decade, experienced its greatest growth in the 
next decade and contributed heavily to the gen- 
eral collapse of the peace of Europe last Sep- 
tember. This lesson must not be forgotten. 
One of the important issues in the future course 
of hiunan events will be the question whether 
or not the nations will agree to seek economic 
restoration through international economic co- 
operation. This is in large part a question of 
international trade policy. 

Looking over the pages of post-war history, 
we can see that American international trade 
policy had then, as it has now, a bearing of great 
significance on world developments. 

After the World War, new frontiers, dis- 
turbed monetary conditions, and expanded 
productive capacity in certain countries, par- 
ticularly the United States, created a demand 
for protective legislation which impeded the 
growth of international trade necessary to the 
economic reconstruction. All of Europe, in- 
cluding the great powei-s, faced the problem of 
stabilizing currencies. In the United States, 
many supplies normally received from abroad 
had been cut off during the War, and this, to- 
gether with the abnormal demand for other 
products, had led to great expansion in many 
lines of industry and agriculture. These could 
be maintained after the War only by a con- 
tinuation of large export sales. 

But the post-war recovery of agricultural 
production in Europe, and particularly in 
France, Germany, and Italy, sharply curtailed 
American exports and exerted downward pres- 
sure on prices here at the same time that the 
production of foodstuffs in Europe was being 
fostered by trade barriers and domestic subsidy. 



JANTJAKY 2 7, 194 

Tlius, in nearly every country there were 
strong tendencies toward increased protection. 
It was particularly unfortunate that the United 
States should have been among those following 
this policy when our increased export capacity 
and our change to a creditor position postu- 
lated the opposite. 

Late in the 1920's, the means which had 
served to maintain a semblance of prosperity 
in Europe broke down. It came to be generally 
recognized that in these countries the repay- 
ment of American and other foreign loans was 
being made not out of exports but out of the 
proceeds of new loans. When the flow of funds 
from America to Europe stopped, a succession 
of crises followed, which were met by the adop- 
tion of strict exchange regulations and other 
controls of trade. 

At this very time, precisely when in our own 
interest imports should have been allowed freer 
access to our markets, the most extreme pro- 
tective tariff in the history of our country was 
adopted, the Hawley-Smoot Act of 1930. 

Timed as it was, and moving in a direction 
precisely contrary to that dictated by the plain 
implications of our international creditor posi- 
tion, the Hawley-Smoot Act was in large meas- 
ure responsible for the subsequent growth of a 
formidable array of trade barriers which soon 
began to paralyze our own export trade and 
that of other countries. 

There can be no doubt whatever, for example, 
that the Hawley-Smoot tariff was the main rea- 
son for the sudden shift by Canada in the 
direction of extreme protectionism. The Cana- 
dian tariff changes of 1930 and 1931 practically 
wiped out important and profitable parts of 
our export trade. This change in Canada's 
policy was also an important factor in bring- 
ing about the Ottawa Agreements between the 
member-countries of the British Empire, in 
which these countries granted special prefer- 
ences to each other. 

Other countries, finding their export markets 
curtailed, sought to make the best of the situa- 
tion by establishing elaborate controls of ex- 
ports and imports; they sought in this way to 
restrict imports to amounts comparable with 



103 

their reduced exports. As a natural conse- 
quence of these measures, bilateral balancing 
of trade was introduced, imports from a given 
country being restricted to the value of exports 
to that country, in order to assure that the cost 
of the imports could be covered. This tended 
further to reduce the volume of trade by elim- 
inating multilateral balancing of international 
accounts. 

The European countries most handicapped 
by the collapse of international lending were 
Germany, the states of southeastern Europe, 
and Italy. Limited in the variety of natural 
resources available within their national fron- 
tiers and now impeded by lack of exchange 
from purchasing the supplies they required, 
they became "have-not" countries. 

There were two different ways out of the di- 
lemma in which the world found itself. The 
other nations could follow the example of the 
"have-not" countries and establish a general 
acceptance of the lower standard of living 
which this procedure implied ; this would mean 
to restrict foreign trade permanently to the 
barest essentials and to attempt to produce at 
home various substitutes for imported products. 
Or they could attempt to find some way of re- 
ducing the trade barriers which had grown up 
during the post-war years, and thus not only 
recover depression losses in domestic prosperity, 
but also achieve further continued progress 
through a balanced development of domestic 
production and international trade. 

By the inauguration of its trade-agreements 
program in 1934, the United States assumed a 
leadership in the direction of restoring normal 
international ti-ade relations. "Since 1934," 
according to a recent world economic survey of 
the League of Nations, "the most important at- 
tempt to liberalize trade has been undertaken 
by the United States of America in the prosecu- 
tion of its programme of trade agi-eements." 
Agi-eements have been concluded under that 
program with 20 countries, including the prin- 
cipal trading nations of the world such as the 
United Kingdom, Canada, France, Belgium, 
and the Netherlands. They cover about 60 per- 



104 



DEPARTMEKT OF STATE BULLETIN 



cent of our trade and affect specifically thou- 
sands of import and export items. 

In all of these agreements, assurances have 
been included to provide for most-favored-na- 
tion treatment, and the policy has been followed 
of extending the benefits of trade liberalization 
extended to other countries on a reciprocal 
basis. 

The agreements concluded in November 1938 
with Canada and with the United Kingdom, 
covering also Newfoundland and the British 
colonies, are especially significant, in that they 
modify the system of imperial preferences es- 
tablished at Ottawa in 1932. As observed by the 
Economic Committee of the League of Nations 
in a recent report, they "gave concrete evidence 
of the desire of the countries constituting the 
British Commonwealth of Nations to seek their 
prosperity in an expansion of world trade as a 
whole rather than in the grant to each other 
of exclusive advantages." 

In the 51/4 years that the trade-agreements 
program has been in operation, marked prog- 
ress has been made toward reviving and ex- 
panding international commerce and restoring 
it on a basis of equal opportunity. There is 
evidence that the principles of the program have 
exerted a considerable effect on the commercial 
policies of other countries. But 51/2 years have 
constituted too short a time in which to undo 
the harm that had been done in the previous 
period of nearly 15 years by the forces of eco- 
nomic nationalism. Had a sane commercial 
policy based on the principles of international 
economic cooperation, instead of the sort rep- 
resented by the Hawley-Smoot tariff, been 
adopted by this country in 1930, our opportu- 
nity for exerting an influence in the direction 
of peace would have been manyfold greater. 
War might have been averted. 

The fact, however, that war, the natural 
outgrowth of economic nationalism, was not 
averted demonstrates the desperate need in the 
world for the general adoption of enlightened 
commercial policies. The fact that we are neu- 
tral and intend to remain so increases our re- 
sponsibility for timely leadership toward this 
end. 



War, of course, means economic dislocation 
in the neutral countries as well as in the bel- 
ligerent countries. The exceptional demands 
of war and the diversion of men from fac- 
tories to training camps and trenches make 
it increasingly difficult for the belligerent 
countries to maintain their hold on foreign 
markets. Many neutral countries, including 
those in Latin America, may, to a growing 
extent, turn to us for supplies previously pur- 
chased from sources no longer available to them. 
Imports by the belligerents of goods for civilian 
consumption are subject to restriction; those 
needed for carrying on the war will be increased. 
Thus those branches of our industry and agri- 
culture producing for export those things 
needed for war and those things which the 
belligerents can no longer supply to other coun- 
tries in the usual quantities are likely to ex- 
pand somewhat. The development of other 
branches of our industry and agi'iculture may 
be retarded. But these effects are ephemeral; 
they in turn will yield to need for further 
readjustment when peace comes. In these cir- 
cumstances, we should therefore vigorously pur- 
sue a trade program designed to encourage to 
the fullest possible extent the maintenance of 
normal trade outlets. This will serve to mini- 
mize the economic dislocations resulting from 
war and reduce the scope of economic recon- 
struction necessary after the war is over. 

The problem of post-war economic recon- 
struction will be difficult enough in any case. 
The immediate needs of reconstruction and the 
satisfying of long-deferred wants may for a 
while obscure the ultimate aftermath effects and 
divert attention from the need to construct a 
sound economic basis for lasting peace and 
prosperity. The task of statesmanship will be 
to avoid the short-sighted and mistaken poli- 
cies which lead from post-war stimulation to 
economic depression. It will be necessary to 
restore international trade by wise and sound 
policies. We must keep the trade-agreements 
program in the fullest possible operation as an 
essential aid in the future task of statesmanship. 

We cannot afford to be indifferent to the na- 
ture of the peace which will follow when this 



JANUARY 2 7, 1940 



105 



war is concluded. The ultimate solution of our 
agricultural problems, the sound development 
of our manufacturing industries, the fuller em- 
ployment of our workers, and the further im- 
provement in our living standards depend on 
an enduring and lasting peace. This is the only 
condition under which international trade, so 
vital to world prosperity, can be maintained and 
expanded. We, as a Nation, cannot grow pros- 
perous in a world community stricken with fear 
and aflSicted with poverty. We have a direct 
interest in the attainment of a peace based on 
international economic cooperation, for only 
then will nations become politically secure and 
be free to take full advantage of their economic 
potentialities. 



The results of the trade-agreements program 
have demonstrated to all nations the benefits 
and feasibility of such cooperation. Our role 
in the economic reconstruction of the world is 
to continue to provide leadership by maintain- 
ing and furthering the basic principles em- 
bodied in that program. The responsibility at 
this time whether or not we shall do so lies 
liefore the Congress of the United States now 
in session. That Congress has before it the 
question of extending for another 3-year period 
the Trade Agreements Act. The issue is clear. 
Shall we, as a great neutral power, continue to 
uphold the principles of economic cooperation 
and equality of treatment in international trade 
relations, or shall we renounce the cause under 
pressure from special-interest groups. 



■f -f + -f > -f -f 



THE TRADE-AGREEMENTS PROGRAM 

Address by Assistant Secretary Grady' 



(Released to the press January 26] 

It is not only an honor, but a privilege and a 
pleasure as well, to address a meeting of the 
League of Women Voters. The high ideals and 
standards of your organization are known to me 
not merely by reputation ; I have had ample oc- 
casion to observe the thoroughness of your meth- 
ods, your painstaking procedure, and your in- 
sistence upon complete objective weighing of all 
aspects of the issues of public policy which you 
consider before you reach your conclusions; I 
know that when your organization reaches a con- 
clusion, it may be relied upon as being well- 
considered and sound, and deserving of the re- 
spect and attention it receives. 

It is, therefore, with particular satisfaction 
that I learned of the decision of the National 
League of Women Voters to support the con- 
tinuance of the trade-agreements program at 



' Delivered at a luncheon of the New Tork City 
League of Women Voters, New York City, and broad- 
cast over Station WOR and the Mutual network, Janu- 
ary 26, 1940. 

206509 — 40 3 



this important time. But the very reasons 
which make this action a cause for gratification 
place me under some difficulty now. Knowing 
as I do the thorough and extended inquiry, 
preparation, study, and discussion which have 
preceded and accompanied the consistent sup- 
port which the League of Women Voters has 
given the trade-agreements program, I feel im- 
pelled to ask myself, what is there of importance 
about this subject which you do not already 
know ? Wliat is there that I can tell you about 
any essential aspect that has not already been 
thorougUy covered in your own studies and dis- 
cussion ? 

But, of course, there is always something new 
and significant to observe in connection with a 
living, dynamic program such as this. There 
is always something to be gained from review- 
ing its essential principles and objectives in the 
light of the ever-changing and developing world 
situation to which it relates. 

Since I do not have to present this matter as 
though it were a new subject to you, I need 



106 



DEPARTMENT OF STATE BULLETIN 



not take time to set before you a rounded ac- 
count of the many important aspects which 
would have to be touched upon in any complete 
and balanced statement. Today's meeting pro- 
vides an opportunity to concentrate upon those 
aspects which are of chief immediate interest 
and significance. 

The authority to negotiate trade agreements 
with foreign countries, conferred upon the 
President by Congress in 1934 and renewed in 
1937, is due to expire next June. The President 
in his recent message to Congi-ess on the state 
of the Union recommended that this authority 
be renewed. A joint resolution to continue this 
authority for 3 more years, introduced into the 
House of Representatives by Mr. Doughton, 
Chairman of the Ways and Means Committee, 
has since January 11 been the subject of public 
hearings by that Committee. I can, from my 
own personal knowledge and experience, testify 
to the searching and thorough scrutiny to which 
every aspect of this important matter is being 
subjected by that Committee. This is as it 
should be, for the question which is now before 
Congi'ess is a momentous one. 

The Congi-ess has the responsibility of de- 
ciding whether this program is to continue, and 
the decision of the Congress will be reached 
through its established legislative procedure. 
This process of legislative reconsideration pre- 
sents occasion for a formal and thorough pres- 
entation to the Congi-ess by the executive 
agencies concerned of the manner in which the 
authority to negotiate trade agreements has 
been exercised and of many important consid- 
erations bearing upon the program. This im- 
poses upon us a thorough and comprehensive 
review of our policies and endeavors, and I 
should like to present to you very briefly my 
own general reflections which have resulted 
from this review. 

The strong prevailing reflection of a general 
character to which this review has given rise 
is a renewed conviction of the soundness of our 
objectives, our policies, and our procedure. 
Our original views and determinations have 
stood up against the tests of time, experience, 



and opposition. I find that on the whole the 
important issues are on this occasion the same 
as before; the opposition to this program ex- 
presses itself much along the lines of its previ- 
ous objections, and the previous answers, after 
further consideration, have been found to be 
the true and complete answers. 

The familiar questions are disposed of as be- 
fore, but with increased confidence. The con- 
stitutionality of the Trade Agreements Act, the 
nullifying consequences which would result 
from a requirement that each individual agree- 
ment be subjected to Senate ratification or con- 
gressional approval, the essentially democratic 
nature of our procedure with its combination of 
full and fair hearing of the views of interested 
persons and an organized system of expert con- 
sideration by which to reach, on the basis of a 
check-and-balance system, decisions that are in 
line with the national interest, the fallacies of 
alternative proposals such as the dog-eared but 
undying proposal to return to an exclusive cost- 
of-production formula, the unimpeached sound- 
ness of the most-favored-nation policy, the evi- 
dence that American agi-iculture and labor re- 
ceive benefits, not injuries, from the program — 
all these familiar topics have been reviewed once 
more in the light of accumulating experience, 
and the results support our policies as they did 
before. 

Of course there are changes of detail in the 
passage of time and as the result of the accumu- 
lation of experience. With many new com- 
modities having been added to the list of those 
which have become the subject of trade-agree- 
ment concessions, it was only to be expected that 
complaints of injury to domestic producers 
should in some cases at least have new commod- 
ities for their text. As before, we have con- 
tinued to experience a concentration of antici- 
patory objections when new negotiations are 
announced; some of these continue for a wliile 
after each agreement is concluded, but generally 
recede into silence as the continued, and fre- 
quently improved, health of the industry con- 
cerned disproves its assertions of impending 
ruin. A very few come to add new names to 



JANUAKY 27, 1940 



107 



the rather brief list of our old but ever-faith- 
ful acquaintances, the objectors whom no 
amount of factual evidence and disproof can 
satisfy, since their objections are based upon a 
priori belief or prejudice. 

The cumulating experience under agreements 
which have been negotiated has of course added 
to the statistical data from which we seek to 
evaluate in some approximate quantitative fash- 
ion the actual results of our efforts. In the face 
of the great technical difficulties involved in any 
attempt to segregate the effects upon our trade 
of the many other factors which influence its 
course and volume, we have continued to find 
in a comparison of the rate of change in our 
trade with agreement and nonagreement coun- 
tries the most satisfactory available rough-and- 
ready index of results. The new statistics that 
become available with the passage of time con- 
tinue to indicate as a fact what any reasonable 
person would naturally expect, that the reduc- 
tion of ti-ade barriers through the exchange of 
concessions tends to stimulate trade. The most 
up-to-date comparison between a pre-agreement 
and the most recent agreement period shows, 
for our trade with trade-agreement countries, 
a 60-percent increase in exports and a 22-per- 
cent increase in imports, and, for other coun- 
tries, a 30-percent increase in exports and an 11- 
percent increase in imports. It is significant, I 
believe, that our trade with agreement countries 
has increased about twice as much as that with 
nonagi-eement countries. 

Opponents have argued that this showing of 
benefit would disappear if purchases for war- 
time and preparedness purposes were segi'e- 
gated. A study of our exports of the principal 
commodities concerned does not support their 
argument. For the facts, I refer you to an arti- 
cle in the Commerce Reports of the Department 
of Commerce for January 20, 1940. 

Opponents have also argued that if trade in 
commodities affected by trade agreements were 
segregated from the total trade with trade- 
agreement countries, the showing of benefit 
would be less favorable or even doubtful. De- 
spite the great amount of statistical labor in- 



volved, we have been doing some sampling to 
test this argument. I may refer to the results 
shown in our sales to Canada. Over the 3 years 
of our first trade agieement with Canada, 1936, 
1937, and 1938, in comparison with 1935, Can- 
ada's total imports from the United States 
gained by 38.5 percent ; the imports of the prod- 
ucts on which Canadian import duties were 
lowered as a result of the agreement gained by 
58.2 percent. 

No essential change has been made in our 
procedure since the Trade Agreements Act was 
last continued by Congress in 1937. We have 
sought in every way to imjDrove the efficacy and 
convenience of this procedure, including our 
relations with the interested public, and I be- 
lieve that in the course of time, as industries 
concerned with their tariff protection learn that 
the effective way to safeguard their legitimate 
interests is not through pressure and lobbying 
but through fair and direct dealing with us 
through established channels, the opportunities 
for helpful cooperation in the national interest 
will be greatly extended. 

Because the League of Women Voters rightly 
recognizes the importance of sound procedure in 
the administration of public affairs as an essen- 
tial safeguard for the democratic way of life, 
I should like to call the attention of those who 
may be interested in a more detailed account of 
our i^rocedure to the statement on the subject 
presented, on January 12, 1940, to the Ways and 
Means Committee by the Honorable A. Manuel 
Fox, United States Tariff Commissioner, an 
outstanding member of the interdepartmental 
trade-agreements organization. 

Reconsideration of these various aspects of 
the program strongly confirm the wisdom of the 
policies and procedures we have been following. 
I say this in no spirit of complacency, for I well 
I'ecognize the continued need for exercising 
vigilance and care in carrying out the program. 

In contrast with the situation which faced us 
in 1937, when we still had hopes that the menace 
of growing international tensions could be 
averted without the outbreak of a new war in 
Europe, the present situation has found these 



108 



DEPAETMENT OF STATE BULLETIN 



hopes frustrated. This is the essential new ele- 
ment in the present situation. There are some 
who contend that this controverts the claim that 
the trade-agreements program exerts an influ- 
ence in favor of peace. The few who make 
use of this contention in opposing the continua- 
tion of the progi'am are generally to be found 
among the standing opponents of the program 
in the first place. Nevertheless, I think the 
point is of such outstanding and timely impor- 
tance as to call for some examination of its 
merits. 

You are well acquainted with the essential 
aim of the trade-agreements program, the res- 
toration and exjDansion of our foreign trade 
on a sound economic basis. You recognize the 
essential validity of the principles on which this 
program is based, that our country, and every 
other country, can enjoy sustained prosperity 
only in a world which is at peace, that a pri- 
mary requisite to the maintenance of sustained 
and peaceful jirosperity is a solid economic 
foundation, and that an active and mutually 
profitable trade among the nations is an indis- 
pensable part of such a foundation. But you 
also know that it is not enough merely to recog- 
nize these principles ; that economic reconstruc- 
tion demands more than just plans. Ideas, 
principles, and plans must eventually find ex- 
pression in some action if we are to benefit from 
tliem. 

This fact stands out clearly in looking back 
on the events of the past two decades which, 
against our great hopes, have proven to be but 
an interlude between two major European wars. 

The necessity of an expansion of international 
trade, as an essential part of a sound structure 
of international relations, was recognized from 
the beginning of this period. This realization 
is implicit in the various efforts which were 
made for international reconstruction. 

In the resolutions of the Brussels Financial 
Conference of 1920, in the Dawes plan, in the 
Young plan, in the many other labors for the 
reconstruction and stabilization of currencies, 
the expectation was implicit that reestablish- 
ment of stable currency and exchange arrange- 



ments as an aid to international comjnerce 
would provide a stable basis for economic recon- 
struction and progress. 

But it soon came to be realized that currency 
stabilization would not be sufiicient; that tariff 
reductions would also be necessary. Efforts 
were made to this end : some by negotiations be- 
tween individual countries, the most important 
of which was perhaps the negotiation of the 
Franco-German commercial agreement of 1927. 
In a more favored situation this agreement 
might perhaps have initiated a period of tariff 
moderation. The celebrated world economic 
conference held in Geneva in 1927, at which the 
United States was represented, had as its major 
objective the reduction of trade barriers. 
Among its results were special conferences which 
prepared a convention for the abolition of im- 
port and export prohibitions, to which the 
United States was a pai'ty, but it was short- 
lived and of limited application. The tariff 
truce conferences of 1930 sought unsuccessfully 
to hold the rising level of tariff barriers in check, 
pending more successful efforts to bring them 
down. An effort was made at Ouchy in 1932 to 
start a general movement for the horizontal re- 
duction of tariff walls. The great French 
statesman, Briand, was thinking in terms of an 
European economic union and diligently urged 
its consideration. 

But the short years of opportunity passed 
without adequate accomplishment. With the 
onset of world-wide economic depression a 
period of um'estrained growth of trade restric- 
tions began. On top of our own high protective 
tariff of 1922 we imposed the excesses of the 
Hawley-Smoot Act of 1930. The Ottawa con- 
ference in 1932 gave birth to an intensified sys- 
tem of preferences within the British Coimnon- 
wealth of Nations. Germany's economic strug- 
gles gave birth, in the new economic plan of 
1 934, to a rigid system of autarchy and economic 
regimentation. 

These are but three of the major pieces in 
a vast jigsaw puzzle of trade restrictions and 
discrimination, exchange controls, clearing and 
compensation agreements, and numerous other 



JAifUABY 2 7, 1940 



109 



devices of commercial warfare, all of which 
make a picture of too intricate design to be 
immediately comprehended. But the meaning 
of the picture must now be clear to us all. It 
is to be read in our daily newspaper headlines. 
The methods of economic regimentation and 
conflict and disregard for reciprocal and multi- 
lateral benefits of international trade lead not 
to stagnation only : they made an important 
contribution to the conditions which lead to war. 

In 1934 there arose above the confusion and 
tumult of devices for restraining world trade 
a note of sanity and cooperation. The United 
States assumed leadership to bring into prac- 
tical operation and effect the idea that had 
been so widely acknowledged in words but not 
in deeds during the preceding decade. At first 
it was difficult to persuade many countries that 
the United States really meant business in the 
pursuit of its reciprocal-trade-agreements pro- 
gram ; in fact, I can remember that it was diffi- 
cult to impress this on some of our own people 
at home, and it took some time to make clear 
that this program could only operate success- 
fully upon the basis of most-favored-nation, or 
nondiscriminatory, treatment. But the e\a- 
dence that we were prepared to push the pro- 
gi-am forward on this basis with vigor and 
determination lies before you in the form of 
trade agi-eements which have been negotiated 
under the program. 

The program, as we know now, came too late. 
The course of events of the last quarter century, 
leading from one European war to another, had 
already been determined in the earlier critical 
years of this period. 

Wliat is the reason for this tragic outcome? 
Tlie need for restoring international trade on a 
somid economic basis was recognized through- 
out these two decades, but it failed to find ex- 
pression in effective action. The fact that our 
Nation can enjoy sustained prosperity only in 
a prosperous and peaceful world, to the achieve- 
ment of which a prosperous and active interna- 
tional trade is essential, is still true today. The 
course of events has demonstrated it. 



The progi'ess we have made since 1934, 
against heavy odds, in restoring and expand- 
ing international trade on a basis of equal op- 
portimity by means of reciprocal agi'eements 
demonstrates conclusively that effective action 
is possible if there is courage and determination 
to proceed along sound lines of policy and in 
the national interest. 

The fault lay in the failure to initiate and 
sustain effective action soon enough, before the 
critical, decisive years had flown by and the 
situation had hardened into the lines of its ulti- 
mate detei'ioration. 

The reestablishment of peace will usher in a 
new decisive period, and we may again look 
to a few critical years in which the statesman- 
ship of the nations of the world will, by its 
character, determine whether those years are to 
constitute another interlude between two wars, 
or whether the world may hope to witness the 
establishment of a sound and enduring struc- 
ture of prosperity and peace. 

The tasks for this future statesmanship will 
be many and heavy, but prominent among them 
will be once more this task of providing for 
the restoration and expansion of trade among 
the nations, through which all may share in 
the development of their varied resources. It 
is to be hoped that when that time comes our 
Government will not fail the opportunity to 
provide aid and leadership through effective 
instruments of action. 

The especially great need at present of con- 
tinuing the program is pointedly summed up 
in the concluding paragraph of a leaflet, issued 
this month by your organization and bearing 
the title, "Keep the Trade-Agreements Pro- 
gram." It reads as follows : 

"In a warring world the Keciprocal Trade 
Agreements Program should continue to oper- 
ate in order to promote peaceful economic re- 
lations wherever possible. Wlien wars abroad 
end, the Program should be ready to contribute 
to the rehabilitation of sane trade relations 
among all nations as a foundation for enduring 
peace." 



Traffic in Arms, Tin-Plat e Scrap, etc. 



MONTHLY STATISTICS 



[Released to the press January 26] 

Note: The figures relating to arms, the licenses 
for the export of which were revoked before they 
were used, have been subtracted from the figures ap- 
pearing in the cumulative column of the table below 
in regard to arms export licenses issued. These latter 
figures are therefore net figures. They are not yet 
final and definitive since licenses may be amended or 
revoked at any time before being used. They are, 
however, accurate as of the date of this press release. 

The statistics of actual exports in these releases 
are believed to be substantially complete. It is pos- 
sible, however, that some shipments are not included. 
If this proves to be the fact, statistics in regard to 
such shipments will be included in the cumulative 
figures in later releases. 

Arms Export Licenses Issued 

The table printed below indicates the char- 
acter, value, and countries of destination of the 
arms, ammunition, and implements of war 
licensed for export by the Secretary of State 
during the year 1939 up to and including the 
month of December : 





Category 


Value 


Country of destination 


December 
1939 


12 months 
ending 

December 
31, 1939 




IV (1) 

I (4) 

V (1) 
(2) 




$360 79 












59.00 






6, 000. 00 






1, 303. 00 












7, 362. 00 




I (4) 
(5) 

III (1) 
(2) 

IV (1) 
(2) 

V (1) 
(2) 
(3) 

VI (1) 

VII (2) 








$74. 00 


926. 00 




500.00 






475, 000. 00 






4, 992. 96 




40.00 
23.00 


2.978.9S 
12,134.00 
156, 750. 00 






130. 378. 50 




830.00 


340, 352. 00 
6, 310. 00 






39, 266. 22 








Total 


967. 00 


1, 169. ,588. 63 




I (1) 

III ^t) 
(2) 

IV (1) 
(2) 




Australia 


1, 812. 65 

1, 80.1. 90 

7,067,375.00 

9,000.00 


6, 976. 36 




6, 606. 42 

10, 781, 175. 00 

13, 500. 00 

1,131.44 






516.94 





Category 


Value 


Country of destination 


December 
1939 


12 months 
ending 

December 
31, 1939 




V 


(1) 

(2) 
(3) 




$24, 296. 00 




$22, 293. 18 
163,068.00 


234,613.68 
402, 120. 00 


Total 


7, 265, 352. 63 


11,469,934.84 




IV 

V 


(2) 
(2) 






12.25 


12.25 




40.00 








Total 


12.25 


52.25 




I 
IV 

V 


(4) 
(1) 
(2) 








2.00 






111.38 






87.00 






1, 610. 00 






30-00 








Total 




1, 840. 38 




V 


(1) 

(2) 










1, 249. 00 






30.00 








Total 




1, 279. 00 




I 

IV 
V 


(11 
(2) 
(4) 
(1) 
(2) 
(2) 
(3) 










655. 21 






65. 696. 65 






966.64 






97.48 






20.28 






5. 250. 00 






86, 400. 00 








Total --- 




149, 086. 26 




I 

IV 
V 


(1) 
(1) 
(2) 
C3) 








48.00 


48.00 




69. 13 






17.45 






12,600.00 








Total 


48.00 


12. 734. 58 




I 

IV 
V 

VII 


(1) 
(4) 
(1) 
(2) 
(1) 
(2) 
(3) 
(1) 




Bolivia 




574. 00 






1,052 00 






487. 39 




23.66 

13, 500. 00 

977.09 


651. 80 
22. 600. 00 
9. 949. 29 
65, 200. 00 






988.66 








Total 


14. 500. 09 


101. 503. 14 




I 
III 

IV 
V 

VII 


(1) 
(2) 
(4) 
0) 
(1) 
(2) 
(1) 
(2) 
(3) 
(2) 




BrazU.... - 




202. 00 






87. 838. 00 




2,802.00 

699.'66' 
2, 601. 00 
28,000.00 
12, 845. 00 
18, 938. 75 
2.00 


8. 842. 00 
447, 880. 00 
7,814.55 
27. 817. 00 
686. 924. 00 
203, 725. 23 
194, 331. 76 
2.00 


Total 


65, 887. 75 


1, 665. 376. 53 




I 

IV 
V 
VII 


(4) 
0) 
(2) 
(2) 
(3) 
(2) 








20.00 






191.38 






26.35 






600.00 






7,000.00 






4,200.00 








Total 




11, 937. 73 



uo 



JANUARY 2 7, 1940 



111 



1 Country of destination 


Category 


Value 


December 
1939 


12 months 
ending 

December 
31, 1939 




IV 
VII 


(1) 

(2) 
(2) 




$144 20 






93.00 












431.00 




I 

V 


(1) 

(2) 
(2) 
(3) 








26.43 


Total 








50.00 




700.00 








804.43 


British Solomon Islands 


I 


(2) 
(4) 








176.00 




10. OO 








185.00 




IV 


(1) 
(2) 








23.00 


Total 




2.30 








25.30 




I 

IV 


(I) 
(4) 
(1) 
(2) 






$89.80 
96.37 


611.90 


Total 


295.37 
1. 620. 35 


35.93 


164.39 


222.10 


2,692.01 




I 

III 

IV 
V 

VI 

VII 


(1) 
(2) 
(4) 
(6) 
(1) 
(2) 
(1) 
(2) 
(1) 
(2) 
(3) 
(2) 
(1) 
(2) 




1,801.48 


32. 045. 72 


Total 


592.00 


3,377.91 


22, 616. 93 
51, 550. 00 


2,675,900.00 


3,711,800.00 
247. 669. 86 


170.40 

622.68 

67,980.10 

8.226.68 

142. 464. 24 


12.825.82 

1. 719. 46 

930,016.28 

82, 374. 20 
436,894.16 

17, 100. 00 


19.25 
9.020.00 


64,079.21 
390, 114. 86 


2,909,482.74 


6,001,398.50 




IV 

I 

IV 
V 
VII 


(I) 

(1) 
(4) 
(1) 
(2) 
(1) 
(3) 
(2) 






86.88 


Chile . 








60.00 


Total 


48.00 


7.5.00 
14,990,40 


273.00 


1,026.00 
15, 500. OO 


17,229.12 


17, 229. 12 
61.055.00 






17, 550. 12 


109,935.52 




I 
III 

IV 

V 

VII 


(1) 
(2) 
(3) 
(4) 
(1) 
(2) 
(1) 
(2) 
(I) 
(2) 
(3) 
(1) 
(2) 






1. 344. on 


1 

Total 




369. 267. 96 




2, 340. 00 




33, 338. 00 




2, 310, 987. 03 




519. 47 




1, 886. 00 


5,600.00 


9,996.55 
269, 907. 00 




371, 234. 67 




1, 274, 3.68. 00 




139,000.00 




298. 449. 88 






5,600.00 


5. 062, 617. 55 




I 

IV 
V 

VII 


(1) 
(4) 
(1) 
(2) 
(1) 
(2) 
(3) 
(1) 
(2) 






179. 70 


Total 




190. 56 


159.00 

129.00 

40,500.00 

25.00 


4,560.15 
4. 079. IQ 

632. 660. 00 
31,016.60 

126. 050. 00 




3, 977. 16 




2. 205. 00 






40,813.00 


704. 917. 16 





Category 


Value 


Country of destination 


December 
1939 


12 months 
ending 

December 
31, 1939 




I 
IV 

V 


(4) 

(1) 

(2) 

(1) 

(2) 
(3) 
(1) 
(2) 




$13.00 






2. 606. 66 






498.00 






19.000.00 






6. 279. 54 






36, 382. 36 




$227. 24 


1, 622. 34 
1,634.93 








Total 


227. 24 


67,036.81 




I 
III 

IV 
V 
VII 


(1) 
(4) 
(1) 
(1) 
(2) 
(2) 
(3) 
(1) 
(2) 








57.00 






50, 749. 60 




43,360.00 


101,160.00 
7. 246. 19 






16. 548. 00 




1, 900. 00 


S. 791. 30 
10. 000. 00 




2, 073. 20 


7. 800. 06 
11.00 








Total 


47,323.20 


200. 363. 15 




I 

IV 
V 


(4) 
(1) 
(2) 
(1) 
(2) 
(3) 








25.10 






39.00 






49.14 




1,600.00 


1, 500. 00 
427.00 




1, 850. 00 


64, 326. 00 


Total 


3. 360. 00 


66, 366. 24 




V 

I 

V 


(3) 

(3) 
(4) 
(1) 
(2) 
(3) 








12.800.00 












2. 750. 00 






340.00 






11,130.52 






876.00 






5, 275. 00 












20,371.52 




I 

IV 
V 
VII 


(1) 
(« 
(4) 
(1) 
(2) 
(2) 
(3) 
(1) 
(2) 










86.00 






100.76 






73.00 






4. 096. OO 






264. 00 




360.00 


8. 100. no 

11.100.00 






2, 046. 60 






1.00 








Total 


3.50.00 


26, 864. 35 




I 

IV 
V 


(4) 
(5) 
(I) 
(2) 
(2) 






25.00 


159.00 




128.00 




68.00 
716. 00 


135. 00 

1,888.00 

30.00 








Total. 


809. 00 


2,340.00 




I 

IV 


(1) 
(4) 
(5) 
(1) 
(2) 




E VDt 




30.00 






3, 080. no 






518.00 




3,537.00 
237.00 


3, 837. 84 
242. 30 


Total 


3, 774. 00 


7, 708. 14 




I 

IV 
V 
VII 


(2) 
4) 
(1) 
(2) 
(2) 
C3) 
(2) 








38, 376. 00 




122.00 


468. 00 
4, 205. 68 






3, 465. 00 






1, 504. 00 






860. 00 






4,366.00 








Total 


122.00 


63, 212. 68 




I 

IV 


(4) 
(1) 
(2) 








14.00 






69.08 






16.10 








Total 




88.18 



112 



DEPAKTMENT OF STATE BUULETIN 





Category 


Value 


Country of destination 


December 
1939 


12 months 
ending 

December 
31, 1939 




I 

ni 

IV 
V 


(1) 
(2) 
(4) 
(1) 
(1) 
(2) 
(1) 
(2) 
(3) 




$10, 665. 66 




$191,840.00 


191,840.00 
7, 423. 04 




2,437,776.00 


2,437,776.00 
80.00 






95.67 






16, 400. 00 




525,000.00 


667,600.00 
1, 165, 130. 00 








Total - 


3,164,616.00 


4,487,000.26 


France 


I 
III 

IV 
V 

VI 


(1) 
(2) 
(4) 
(1) 
(2) 
(2) 
(1) 
(2) 
(3) 
(1) 




151.94 




6, 642. 00 
1,065,000.00 
13,984,000.00 


6,992.00 

1,065,394.60 

85, 519, 210. 00 

42, 748. 70 






118.00 






467, 462. 00 






7, 057, 827. 48 






27, 955, 963. 00 






4, 400. 00 








Total 


15,055,642.00 


122,120,267.62 




I 


(1) 
(4) 




32.50 






6.92 








Total - 




38.42 




I 


(1) 
(4) 










34.00 






30.00 








Total 




64.00 




I 

IV 


(n 

(4) 
(1) 
(2) 




67.60 






78.31 






4,131.00 






1,164.76 








Total 




5, 431. 67 




I 

V 


(4) 
(2) 


33.83 






90.00 








Total -.- 


33.83 


167. 66 




I 

IV 

V 


(1) 
(4) 
(1) 
(2) 
(2) 








69. 06 






653.46 






1, 1S4. 62 
287.42 










12,800.00 








Total 




14,944.55 




I 
III 

IV 
V 

VII 


(1) 
(2) 

3) 
U) 
(1) 
(2) 
(1) 

2) 

h) 

(2) 
(3) 
(2) 










428.86 






1,000.00 




69,884.00 


90, 984. 00 
29,649.37 






17, 226, 850. 00 






14,040.00 






937. 78 






438. 55 






431, 134. 25 




6,966.00 


1,47.5,4,18.42 
1,668,168.50 






52. 978. 00 








Total 


66, 840. 00 


20,991,067.72 




I 

V 


(6) 
(2) 
(3) 








124, 400. 00 






3, 500. 00 






2, 200. 00 








Total 




130, 100. 00 




1 (1) 

IV ffi 

2) 

V (2) 
(3) 

VII 1) 
2) 








32.00 
12.00 


468.00 




1, 972. 00 
200. 16 






84.00 




2,600.00 


2,686.00 
7, 665. 00 






93.00 






9, 227. 60 








Total 


2,644.00 


22,194.66 





Category 


Value 


Country of destination 


December 
1939 


12 months 
Ending 

December 
31, 1939 


Haiti 


I 

rv 

VII 


(1) 

(4) 

(1) 

(2) 

(1) 

(2) 




$11, 687. 80 






36,662 60 






2, 391. 95 






717.98 






61.52 






338.50 








Total 




51,849.98 




I 

IV 
V 

VII 


(1) 

(4) 

(1) 

(2) 
(1) 
(2) 
(3) 
(2) 










159.00 






4,972.38 






814.00 




$186. 90 


4,543.50 
2.W,000.0Q 




18. 500. 00 

14,000.00 

260.00 


18,661.00 
19,000.00 
1, 235. 00 




32,946.90 


299.274.88 




I 

IV 

V 
VII 


(1) 
(4) 
(1) 
(2) 
(2) 
(2) 








1, 209. 85 






1, 516. 70 






22, 279. 32 






3, 662. 06 






40.00 






1,011.50 








Total 




29, 708. 43 




I 

V 


(1) 
(4) 
(3) 










43.40 






69.00 






3,670.00 








Total 




3. 782. 40 




I 

IV 
V 

VI 


(1) 
(4) 
(1) 
(2) 
(1) 
(2) 
(3) 
(2) 






India 


438.98 

1,437.63 

39.00 

438.03 


2, 303. 73 




8,990.82 

3, 179. 86 

658. 67 

85, 100, 00 




193.00 


3, 248. 00 
2, 600. 00 






334.00 










2, 546. 64 


106,215.08 




III 

IV 
V 


(1) 
(1) 
(2) 
(1) 
(2) 






849,760.00 


849,750.00 




1,028.27 






188, 10 






40,000.00 






100.00 








Total 


849,750.00 


891, 066. 37 




I 

V 


(3) 
(4) 

h) 

(2) 
(3) 








26, 600. 00 






19.34 






210,000.00 






4, 379. 00 






29,266.00 








Total 




270,164.34 




V 


(2) 
(3) 






Italy 




18,810.00 






13,900.00 












32, 710. 00 




I 

IV 


(4) 
(1) 
(2) 










62.44 




418.00 


3,095,97 
460.67 








Total 


416.00 


3,609.08 




V 


(1) 
(2) 








767, 000. 00 






4,684.60 












761,684.60 




I 

IV 
V 


(1) 
(4) 
(1) 
(2) 
(1) 










1, 057, 80 






395. 36 






173, 20 






124,36 






2, 300. 00 








Total 




4,060.71 


Latvia 


V 


(3) 


19,080.00 


19,080.00 



JANUAKY 2 7, 194 










Country of destination 


Category 


Value 


December 
1939 


12 months 
ending 

December 
31, 1939 




vn 
I 


(2) 

(2) 
(4) 




$494 00 




























I 

IV 


(1) 
(2) 
(4) 
(1) 
(2) 


































6, 368. 76 




I 


(1) 
(4) 






$251. 45 
200.28 


347.88 




286.94 


451. 73 


634. 82 




I 

m 

IV 
V 

VII 


(1) 
(3) 

\^ 

(3) 
(1) 
(2) 






785. 84 


Total 




304, 000. 00 




36, 858. 00 




995, 600. 00 




36, 435. 61 






40,000.00 

400.00 

1,000.00 

8,382.00 


726, 663. 00 
323, 137. 05 
897,730.00 
20, 420. 75 
61,716.21 






49, 782. 00 


3, 409, 738 36 




I 

V 


(1) 
(4) 
(2) 
(3) 






88.40 


Total 




184. 76 




1, 000. 00 




20, 610. 00 








21.883.16 




I 
III 

IV 

V 

VII 


(2) 
(1) 
(2) 
(1) 
(1) 
(2) 
(3) 
(2) 






13, 711. 00 


13, 728. 60 


Total 


1,071,640.00 




26,461.80 




45.00 




2, 494, 003. 00 


1, 920. 00 


652, 833. 69 
1, 639, 189. 50 




40, 051. 48 






15,631.00 


6, 737, 862. 97 




I 
m 

IV 
V 

VII 


(1) 
(2) 
(4) 
(5) 
(1) 
(2) 
(1) 
(2) 
(1) 
(2) 
(3) 
(1) 
(2) 












47, 685. 00 


414. 03 
17,875.00 


1, 669. 94 

281, 875. 00 

1, 071, 862. 00 






21, 145. 60 






39, 889. 30 




302.35 


860.21 
142, 478. 00 


Total 


216. 75 


302, 690. 46 
324, 442. 00 




10.00 




176, 000. 00 






18,808.13 


2, 410 955 68 




I 

V 


(1) 
(4) 
(3) 






928 76 


Total _. 




1,067.81 




14, 000. 00 












I 

rv 

V 


(1) 
(4) 
(2) 
(2) 
(3) 










Total 




636, 71 




166. 63 




3,000.00 




14, 600. 00 








18,812.86 


ew Guinea, Territory of 


I 
rv 


(1) 
(4) 
(2) 






17.00 




67.66 




64.00 



113 





Category 


Value 


Country of destination 


December 
1939 


12 months 
ending 

December 
31, 1939 




V (2) 
(3) 




$29, 659. 00 






101, 600. 00 








Total 




131, 197. 66 




I (4) 

I 0) 

(4) 

IV (2) 

V (2) 
(3) 

VII (1) 
(2) 










116. 10 












3.53. 66 






401. 88 






82.68 




$180. 15 


11,911.40 
19, 300. 00 






6,000.00 






4, 104. 07 








Total.... 


180. 15 


42, 153. 69 




I (2) 
(4) 

III (1) 

IV (1) 
(2) 

V (2) 
VII (2) 








1, 600. 00 




1,264.00 


2,609.00 
20, 906. 00 










4,035.00 


6,094.70 
62.50 






885.00 








Total 


5,299.00 


32, 574. 20 




I (4) 

IV (1) 

(2) 

VII (1) 








41.00 












48.00 






3.67 






6.78 








Total - 




87.33 




I (1) 
(2) 
(4) 

m (1) 

IV (1) 
(2) 

V (2) 
(3) 

VII (2) 










439.22 






4,489.00 




15.20 


672. 34 
644, 000. 00 






66.00 




16.00 


21.03 






19, 300. 00 














Total 


31.20 


679 243 46 




V (1) 
(2) 
(3) 














60.00 














Total ... 








I (4) 

IV (1) 
(2) 

V fl) 
(2) 
(3) 

VII (1) 
(2) 








2, 100. 00 






541 88 












6, 641. 13 










2, 764 39 




729.60 


4, 432. 80 
800 00 








Total 


2, 829. 60 






IV 0) 
(2) 














820.00 








Total 




828 00 




I (1) 
(2) 

n ''' 

m (I) 

(2) 

rv 0) 

(2) 
V (1) 

(2) 

(3) 
VII (1) 

(2) 
















26.600.00 












16, 000. 00 












10, 038 00 












412.00 




2,700.00 


39, 800. OO 
60, 727 49 






33, 602 52 






294.40 






38, 308. 00 








Total 


2,700.00 


473,087.77 



114 



DEPAKTMENT OF STATE BULLETIN 





Category 


Value 


Country of destination 


December 
1939 


12 months 
ending 

December 
31, 1939 




I 
I 

IV 
V 


(4) 

(1) 

(4) 
(1) 
(2) 
(1) 
(2) 




$7.47 












118. 70 






44.48 






1, 056. 65 






111.39 






420,000.00 






60.00 








Total 




421,381.12 




I 
III 

IV 
V 

VII 


(4) 
(1) 
(1) 
(2) 
(1) 
(2) 
(3) 
(1) 










10.00 




$885,000.00 


885,000.00 
317.00 






100.00 






8,097.00 




33.00 


9, 238. 00 
476.00 






628.00 










886,033.00 


903,766.00 




I 

V 


(5) 
(2) 
(3) 








1, 265, 000. 00 






3, 950. 00 






26, 100. 00 








Total 




1.296,060.00 




I 

IV 
V 


(1) 
(4) 
(1) 
(2) 
(1) 










609.92 






403. 86 






201.76 




60.52 


60.52 
1.900.00 








Total 


60.62 


3, 176. 06 




I 

IV 


(1) 
(4) 
(1) 
(2) 








39.00 






116.37 






229.50 






34.76 








Total.-.- --- -- 




419. 63 




VII 

I 
III 

V 


(1) 

(1) 
(4) 
(1) 
(1) 
(2) 
(3) 








193.80 


193. 80 










71.25 






1, 248. 74 




4,314,760.00 


6,217.000.00 
188. 036. 50 




263,622.95 


466, 836. 07 
32, 216. 00 










4,678,372.95 


6. 896, 406. 66 




I 

IV 
V 

VII 


(1) 
(1) 
(1) 
(2) 
(3) 
(2) 








62.90 




663.00 


1, 169. 75 
237, 967. 60 






22, 810. 84 






20, 200. 00 




160.00 


150.00 




703.00 






IV 

I 

IV 

V 


(2) 

(1) 
C4) 
(1) 
(2) 
(I) 
(2) 
(3) 








19.00 








ThaUand 


17.66 

1.93 

1,623.00 


41.23 




14.11 

30, 603. 26 

378.26 






6, 500. 00 






32, 347. 61 






386, 960. 00 








Total 


1, 642. 58 


466, 744. 46 




I 

IV 
V 


(4) 
(1) 
(2) 
C2) 
(3) 




Trinidad 




1.08 






82.50 






65.00 




2,800.00 


3, 856. 50 
10. 000. 00 








Total 


2,800.00 


13.994.08 




I 


(2) 
(6) 








223, 505. 00 






170, 450. 00 





Category 


Value 


Country of destination 


December 
1939 


12 months 
fending 

December 
31, 1939 


Turkey— Continued. 


III 
IV 
V 
VI 


(1) 

(2) 
(1) 
(2) 
(2) 
(3) 
(1) 








55.501.94 












1, 205 25 


















8, 100. 00 












3,174,979.03 




IV 


(1) 
(2) 










18.70 






.80 












19.50 




I 

IV 
V 

vn 


(1) 
(4) 
(1) 
(2) 
(1) 
(2) 
(3) 
(2) 








$7.18 


1, 149. 27 




1.690.03 






3, 029. 46 






352.29 




1, 800. 00 


65,113.00 
12, 303. 86 






3, 765. 00 






11,760.00 








Total 


1, 807. 18 


99, 162 91 




V 


(1) 
(2) 
(3) 








702, 900. 00 


publics. 




70, 614. 23 


107, 500. 00 


404, 548. 00 


Total 


107. 600. 00 


1. 17S, 062. 23 




I 

IV 


(4) 
(1) 
(2) 






39.00 


62 00 

1,95.5.00 

243.00 






243.00 


Total 


282.00 


2, 2,50. 00 




I 

IV 
V 

VII 


(1) 
(2) 
(4) 
(1) 
(2) 
(1) 
(2) 
(3) 
(1) 
(2) 






40 00 

165,00 

101.00 

20,576.34 

1, 27.'*. 15 

277, .570. 00 

31,974.58 

165,353.60 

11,340.79 

13,650,03 








3.00 












11,462.32 
12,000.00 
4,044.99 






Total 


27, 600. 31 


622,049.36 




V 


(1) 
(2) 
(3) 






63,000.00 
62,01200 
2,000.00 














Total 




127,04200 










36, 262, 313. 54 


204, 655, 780. 41 









During the month of December, 301 arms 
export licenses were issued, making a total of 
4,327 such licenses issued during the current 
year. 

Abms Exported 

The table printed below indicates the char-^ 
acter, value, and countries of destination of the 
arms, ammunition, and implements of war ex- 
ported during the year 1939 up to and including 
the month of December under export licenses 
issued by the Secretary of State : 



JANUAEY 2 7, 194 



115 





Category 


Value 


Country of destination 


December 
1939 


12 months 
ending 

December 
31, 1939 




IV (1) 

I (4) 

V (1) 
(2) 




































Total -- 








I (4) 
(5) 

in (1) 

(2) 

IV (1) 
(2) 

V (1) 
t2) 
(3) 

VI (1) 

vn (2) 








$254.00 




























4,677.00 


11,703.00 




21, 238. 00 
79,200.00 


143, 573. 20 
89,952.00 




1,828.00 


28,275.00 




107,197.00 






I (1) 

(4) 

III (1) 
rv (1) 

(2) 

V (1) 

(2) 

(3) 






1,428.30 

1,713.54 

1,678,366.00 


6, 439. 24 




6, 267. 30 
1,578,366.00 












17, 296. 00 




63,377.00 
49, 956. 00 


210. 621. 95 
53, 406. 00 


Total 


1,684,839.84 


1,873.024 32 




V (2) 

I (4) 

IV (1) 

(2) 

V (1) 
(2) 








40 00 
























87.00 






1, 610. 00 






30.00 








Total - 








V (1) 
(2) 
















30.00 








Total 








I (1) 
(2) 
(4) 

IV (1) 
(2) 

V (1) 
(2) 
(3) 






Belgium 










65, 769. 00 






938. 36 






111.62 












114.800.00 






5, 618. 00 






86. 400. 00 








Total 








IV (1) 
(2) 

V (3) 






Bermuda 




69. 13 






17.46 




3,000.00 


12, 600. 00 


Total 


3,000.00 


12,686.58 




I (I) 
(2) 
(4) 

IV (1) 
(2) 

V (1) 
(2) 
(3) 

VII (1) 


Bolivia 










7, 000. 00 






!, 478. 00 






487. 39 




101.00 


661.80 
9,100.00 






8, 036. 20 






62, 800. 00 


Total 




994.16 






101.00 


82,021.65 


Brazil 


I (1) 
(2) 

ni \^ 

IV (1) 
(2) 








2, 400. 00 
2, 056. 00 


88, 438. 00 

7. n.'il. 00 

668 240 00 


3,601.00 
2,268.00 


12. 363. 46 
33, 336. 00 





Category 


Value 


Country of destination 


December 
1939 


12 months 
ending 

December 
31, 1939 


Brazil— Continued. 


V 


(1) 

(2) 
(3) 


$104, 085. 00 
28, 417. 00 
I, 000. 00 


$712. 927. 00 
142. 942. 47 
163, 686. 00 


Total 


141.827.00 


1, 829, 185. 93 




I 

IV 

V 

VII 


(4) 
(1) 
(2) 
(3) 
(2) 














108 38 




250.00 
2,600.00 


600.00 
7,000.00 










2, 760. 00 






IV 
VII 


(1) 
(2) 
(2) 














76 00 














Total 








I 
V 


(1) 
(2) 
(3) 






























Total .... 








I (2) 
(4) 
















10 00 








Total 








IV 


(1) 
(2) 
























Total 








I 

IV 


(1) 
(4) 
(1) 
(2) 






Burma _ 




667 10 






203.00 












128.46 








Total 








I 
in 

IV 
V 

VI 

VII 


(1) 
(2) 
(4) 
(5) 
(1) 
(1) 
(2) 
(1) 
(2) 
(3) 
(2) 
(1) 
(2) 








4,603.78 


28,892.46 
692. 00 






4. 165. 93 

.TO, 960. 00 

268.273.00 

2, 214. 65 

445.34 


21, 296. 07 
51, 650. 00 
1,304,293.00 
10, 596. 59 
1,610.87 
882,550 14 




10,017.61 
103, 967. 00 
17, 100. 00 
.502. 50 
30,901.00 


82, 635. 46 
217,760.04 
17, 100. 00 
91, 177. 87 
260. 846. 49 


Total 


493, 130. 81 






IV 

I 

IV 
V 
VII 


(1) 

(1) 
(4) 
(1) 
(2) 
(1) 
(2) 
(2) 
















Chile. 
















































Total 








I 
in 

IV 
V 

vn 


(2) 
(3) 
(4) 
(1) 
(2) 
(1) 
(2) 
(1) 
(2) 
(3) 
(1) 
(2) 






China 




135, 408. 00 










8, 735. 00 












604.46 










2,009.00 


4,362.05 
961,461.00 




76,093.00 


238. 604. 22 
196, 908 00 




I.TO.OOO.OO 
298, 400. 00 


139,000.00 
298.449.88 


Total 


514,502.00 


2.012,724.61 



116 



DEPARTMENT OF STATE BULLETIN 





Category 


Value 


Country of destination 


December 
1939 


12 months 
ending 

December 
31, 1939 




I 

rv 

V 
VII 


(1) 
(*) 
(1) 

(2) 

(1) 

(2) 
(3) 

(1) 

(2) 




$281. 70 






211.66 




$166. 00 

712.00 

47, 600. 00 

21.00 

4,009.00 


4, 523. 66 
4, 602. 10 

353, 936. 00 
41,758.50 

141,304.00 
3,977.49 




1,365.00 


2, 205. 00 




53,772.00 


662,800.00 




I 

IV 
V 

VII 


(4) 
(1) 
(2) 
(1) 
(2) 
(3) 
(1) 
(2) 








13.00 






2, 606. 65 






498.00 






41, 680. 00 






5, 430. 00 




1,625.00 


41,600.00 
728.00 






1,605.93 








Total - 


1,625.00 


93, 961. 58 




I 
III 

IV 
V 
VII 


(1) 
(4) 
(1) 
(1) 
(2) 
(2) 
(3) 
(1) 
(2) 








67.00 




39.00 


60,686.00 
67, 795. 00 




390.00 
2,109.00 


7,392.35 
14, 177. 00 
2, 300. 00 






1,000.00 




2, 280. 52 


6,649.34 
11.00 








Total 


4,818.62 


139,067.69 




I 

IV 
V 


(4) 
(2) 
(2) 
(3) 








25.10 






49.14 






427.00 




21,200.00 


30,426.00 


Total 


21,200.00 


30, 927. 24 




V 


(1) 
(3) 








115, 600. 00 






12, 800. 00 








Total 




128, 300. 00 




I 

V 


(2) 
(4) 
(1) 
(2) 
(3) 










2, 760. 00 






340.00 






11,211.48 






3, 266. 00 






6, 500. 00 


Total 




23,067.48 




I 

IV 
V 
VII 


0) 
(2) 
^4) 
(1) 
(2) 
(2) 
(3) 
(1) 










85.00 






100. 75 






19, 673. 00 






4,000.00 






264.00 




360.00 


8,100.00 
11, 100. 00 






2, 045. 60 








Total 


360. 00 


45, 268. 35 




I 

IV 
V 


(4) 
(6) 
(1) 
(2) 
(2) 






42.00 


134.00 




128. 00 






34.00 




1,128.00 


1,373.00 
26.00 








Total 


1,170.00 


1, 695. 00 




I 

IV 
V 


^4) 
(6) 

h) 

(2) 
(1) 








30.00 






3, 080. 00 






618.00 




18.00 


210. 39 
6.40 






1, 600. 00 








Total 


18.00 


6, 444. 79 




I 

IV 


(2) 
(4) 
(1) 
(2) 






38, 375. 00 
79.00 


38, 375. 00 




259. 00 
4, 324. 63 






3,421.00 





Category 


Value 


Country of destination 


December 
1939 


12 months 
ending 

December 
31, 1939 




V 
VII 


(2) 
(3) 
(2) 
























Total 


$38,454.00 


53, 097. 63 




V 

vn 


(2) 
(1) 








44, 180. 00 






2.07 








Total 




44, 182. 07 




I 
rv 


(4) 
(1) 
(2) 










14.00 






69.08 






66.10 








Total 




139. 18 




I 

IV 
V 


(1) 
(4) 
(1) 
(2) 
(1) 
(2) 
(3) 










8, 617. 06 






7,041.95 






80.00 






96.67 






14, 650. 00 




22,000.00 
51,919.00 


101,075.00 
216,089.00 


Total 


73,919.00 


347, 448. 67 




I 
m 

IV 

V 

VI 


(1) 
(2) 
(4) 
(1) 
(2) 
(2) 
(1) 
(2) 
(3) 
(1) 








151.94 






464.00 






399.00 




14,479,451.00 
620.00 


30,424,096.00 

1, 700. 00 

118.00 






470, 662. 00 




1,010,928.00 
2,366,382.00 


1,839,915.14 

6,281,317.00 

2,200.00 








Total 


17,857,281.00 


3,8,020,923.08 




I 


(1) 
(4) 














6.92 








Total .._. 




38.42 




I 


(1) 
(4) 










34.00 






32.00 








Total 




66.00 




I 

IV 


(1) 
(4) 
(1) 
(2) 










67.60 






78.31 






4, 131. 00 






1, 169. 26 








Total 




6, 436. 07 




I 

V 


(4) 
(2) 










33.83 






95.00 








Total 




128. 83 




I 

IV 
V 


(1) 
\^ 

(3) 










123. 70 






793. 70 






1, 160. 12 






287. 42 






13, 300. 00 






7,000.00 








Total 




22, 664. 94 




I 
in 

IV 
V 

VII 


(1) 
(2) 

h) 

4) 

h) 

(2) 

(1) 

(2) 
(1) 
(2) 
(3) 
(2) 










428. 86 






1, 000. 00 






34, 685. 00 






62,617.32 




3, 91B, 600. 00 
7,045.00 


28,680,093.00 

14,245.00 

966.28 






451.66 






492,464 00 




116,641.00 
146,191.00 


1,033,229.08 
838, 467. 60 
277,843.00 








Total 


4,184,377.00 


31,436,389.68 



JANUAEY 27, 1940 










Country ol destination 


Category 


Value 


December 
1939 


12 months 
ending 

December 
31, 1939 




I 
V 


(5) 
(2) 
(3) 




$34, 028. 00 


Total 




3,600.00 
2, 200. 00 








39, 728. 00 




I 

IV 
V 
VII 


(1) 
(4) 

^') 
(2) 
(2) 
3) 
(1) 
(2) 










Total 




1, 960. 00 


$30.60 


200.15 








7, 665. 00 




93.00 




9, 489. 00 






30.60 


20, 019. 15 




I 

IV 

vn 


(1) 
(4) 
(1) 
(2) 
(1) 
(2) 






11,688.00 






36, 662. 60 




2, 380. 75 


.87 


728.98 
30.76 




334.54 






.87 


61,815.63 




I 

IV 
V 

VII 


(I) 
(4) 
(1) 
(2) 
(1) 
(2) 
(3) 
(2) 






159. 00 




3,800.00 
373.00 
186.90 


4,972.38 

814.00 

4, 643. 50 

150, 000. 00 




61.00 




6,000.00 




969. 00 






4,359.90 


166, 498. 88 




I 

IV 
V 

vu 


(1) 
(4) 

(2) 
(2) 
(2) 




31.25 


849. 65 


Total 


654.68 




22, 608. 78 




3, 215. 92 




40.00 




1,037.86 






31.25 


28,406.89 




I 

V 


(I) 
(4) 
(3) 






43.40 




64.00 


69.00 
3,670.00 






64.00 


3,782 40 


India 


I 

IV 
V 

VI 


(1) 
(4) 
(I) 
(2) 

(2) 
(3) 
(2) 






2.026.60 






6, 684. 29 




3, 140. 86 




69.64 


64, 502. 75 
877.00 


81, 282. 75 
3, 282. 00 
2, 500. 00 




334.00 






65, 379. 75 


99, 310. 14 




IV 
V 


(1) 
(2) 
(1) 
(2) 






975. 08 


Total 




162.85 




40,000.00 




100.00 








41, 237. 93 




I 

V 


(3) 
(4) 
(I) 
(2) 
(3) 








26, 500. 00 


( 

Total. 


19.34 


4, 977. 34 
210,000.00 




4, 300. 00 




29, 298. 00 






19.34 


276, 075. 34 




V 


(2) 
(3) 




Italy 


10,962.00 


37, 702, 00 


L Total 


13, 900. 00 






10,962.00 


51,602.00 



117 





Category 


Value 


Country of destination 


December 
1939 


12 months 
ending 

December 
31, 1939 




I 

IV 


(4) 

(1) 

(2) 








$192 00 


2,896.97 










192. 00 






IV 
V 


<1) 

(2) 








6,380 00 






767,000.00 
236,210.00 










Total 




998,590.00 




I 

IV 
V 


(1> 
(4) 

(1) 
(2) 
(1) 








1,057.80 






















2, 300. 00 






Total 




4,060.71 




VII 

I 


(2) 

(1) 
(2) 
(4) 








864.00 








Liberia 




30 80 












18 83 








Total 








I 

rv 


(1) 
(2) 
(4) 
(2) 




























1,276.00 






Total 




6,032.75 




I 


(1) 
(4) 






























I 

in 
rv 

V 

vn 


(1) 
(2) 
(3) 
(4) 
(1) 
(1) 
(2) 
(1) 
(2) 
(3) 
(1) 
(2) 


































995, 600. 00 
18, 628. 89 












79,700.00 
700. 00 

1,600.00 
600.25 

1, 460. 00 


624,850.00 
328, 080. 00 
890, 446. 00 
14, 109. 75 
51,423.08 


Total 


84,050.26 






I 
I 

V 


(4) 

(1) 
(4) 
(2) 
(3) 
















58.00 
73.09 






184. 76 
1,000.00 
20,610.00 










Total - 


131. 09 


21, 883. 16 




I 
III 

IV 
V 

VII 


(2) 
(1) 
(2) 
(1) 
(1) 
(2) 
(3) 
(2) 


















6, 569. 00 










485, 314. 00 

507, 996. 17 

1,210.390.00 




34, 853. 50 
101,321.00 








Total - 


136, 174. 60 


3, 344, 898. 67 




I 
III 

IV 


(1) 
(2) 
(4) 
(6) 
(1) 
(2) 
(1) 
(2) 












46, 646. 00 










495,550.00 
















39,889.30 
540.04 







118 



DEPAETMENT OF STATE BULLETIN 





Category 


Value 


Country of destination 


December 
1939 


12 months 
ending 

December 
31, 1939 




V 
VII 


(1) 

(2) 
(3) 

(1) 




$142, 478. 00 




$54,030.00 


206, 002. 10 
261, 607. 00 






10.00 










64, 030. 00 


6,070,427.32 




I 

V 


(1) 

(4) 
(3) 






381. 60 
372. 68 


10, 080. 85 




1,224.05 
14, 000. 00 










764. 28 


16, 304. 90 




I 

IV 
V 


(1) 
(4) 
(2) 








612. 87 






448. 47 






166. 53 






2,740.00 






14,500.00 












18, 467. 87 




I 

IV 

V 


(1) 
(4) 
(2) 
(2) 
(3) 






New Guinea, Territory of 




17.00 




91.66 






82.00 




9,860.00 


28,059.00 
102, 000. 00 










9,860.00 


130, 249. 56 




I 
I 

IV 
V 

VII 


(4) 

(1) 
(4) 
2) 

(1) 
(2) 
(3) 
0) 
(2) 








116. 10 












466. 61 






592. 43 






106. 68 






4, 600. 00 






12, 762. 00 






19, 300. 00 






6, 578. 00 






6, 964. 00 








Total 




49 259.62 




I 
III 

IV 
V 

vn 


(2) 
(4) 
(1) 
(1) 
(2) 
(2) 
(2) 










1, 600. 00 






1,345.00 






20, 906. 00 






427.00 






2, 069. 70 






30.00 






885. 00 
















I 

IV 
VII 


(4) 

(2) 
(1) 






Nigeria --- 




41.00 












48 00 






3.67 






6.76 








Total 




67.33 




I 

IV 
V 
VII 


(1) 
(2) 
(4) 
(1) 
(2) 
(2) 
(3) 
(2) 










486. 72 






4, 424. 00 




46.60 


603.64 
30.00 




3.00 


6.03 
6, 226. 87 






19, 637. 00 






6,302.00 








Total. . . 


48.60 


36, 616. 26 




V 


(1) 
(2) 
(3) 








3, 052. 00 






72.00 






404.00 








Total 




3, 628. 00 




IV 
V 

VII 


(1) 
(2) 
(1) 
(2) 
(3) 
0) 
(2) 










60n. 88 






465. 00 






4, 100. 00 






800, 00 






3, 400. 00 






4,082.00 






728.00 








Total 




14.076.88 





Category 


Value 


Country of destination 


December 
1939 


12 months 
Ending 

December 
31, 1939 




IV 


(1) 

(2) 




$8.00 


















828.00 




I 

n 
ni 

IV 
V 

VII 


(1) 
(2) 
(4) 

(1) 
(2) 
(1) 
(2) 
(1) 
(2) 
(3) 
(1) 
(2) 










45.00 












955 36 


















10, 678. 40 












412.00 






36. 585. 00 






99, 422. 70 






65 972.00 






294. 40 




$9,620.00 


38,988.00 


Total 


9,620.00 


1, 389, 896. 36 




I 
I 

IV 
V 


(4) 

(1) 
(4) 
(1) 
(2) 
(1) 
(2) 








7.47 












118. 70 












1, 056 65 






111.39 






257, 705. 00 






39.00 








Total - 




259, 198. 12 




I 

IV 

V 

VII 


(4) 

h) 

2) 
(1) 
(2) 
(3) 
(1) 
















317. 00 






100. 00 






9. 135. 00 






6,310.00 






28, 475. 00 






628. 00 








Total - - 




44. 875. 00 




I 

V 


(5) 
§1 
















3. 970. 00 






26.190.00 








Total 




865, 160. 00 




I 
rv 

V 


(1) 
(4) 
(1) 
(1) 
















277.95 






201.75 






1,900.00 












2. 989. 62 




I 
rv 


(1) 
(4) 
(1) 
(2) 










39.00 






116.37 






229.50 






34.76 








Total 




419.63 




I 
v 


(1) 
(4) 

h 

(2) 
(3) 










71.25 






1, 292. 14 




2,342.00 


123,057.00 
152. 631. 72 




io, 955. 66 


32,170.00 




13. 297. 00 


309,122.11 




I 

IV 

V 

VII 


(1) 
(1) 
(1) 
(2) 
(3) 
(2) 








62.90 




653.00 


1.1S7 75 
24.'>,69700 






22, 784. no 






20,200.00 




150.00 


160,00 




703.00 


290.081.65 




IV 

I 

IV 


(2) 

(1) 

'^ 
(2) 








19.00 












23,58 






12,18 




8, 184. on 

336.42 


30, .MS, 19 
378,26 



JANUABY 2 7, 1940 



Country of destination 



Thailand— Continued. 



Total. 
Trinidad 



Total. 
Turkey 



Total. 

Turks and Caicos Islands. , 

Total 

Union of South Africa 



Total. 
Uruguay... 



Total.. 
Venezuela.. 



Total.- 

Windward Islands.. 
Yusoslavia 



Total 

Grand total. 



105.00 

2.10 

193, 400. 00 

2, 042. 32 

4.000.00 

324.00 



12 months 
ending 

December 
31, 1939 



$5, 500. 00 
65, 167. 61 
346, 200. 00 



79.50 

37.00 

1, 051. 50 

11,500.00 



12, 669. 08 



75, 195. 00 

312,088.00 

170. 34 

5.25 

329, 778. 00 

25.00 



717,261.69 



19.50 



1, 210. 83 
1,835.41 
3, 375. 21 
368.24 
64, 978. 00 

10, 927. 36 
3, 765. 00 

11, 760. 00 



98, 220. 05 



845, 966. 00 
74, 513. 78 
176, 536. 00 



13.00 

1, 955. 00 

160.00 



40.00 

41.00 

67.00 

20, 544. 24 



1,2 



;. 85 



271,833.00 
24. 379. 82 

168, 853. .W 
7,071.37 
13,410.00 

497, 528. 78 



182. 036. 00 
32. 967. 00 
1, 906. 00 



102, 298. 298. 51 



Asms Import Licenses Issued 

The table printed below indicates the char- 
acter, value, and countries of origin of the 
arms, ammunition, and implements of war 



119 

licensed for import by the Secretary of State 
during the month of December 1939 : 



Country of origin 


Category 


Value 


Total 




HI (I) 

V (3) 
I (I) 
IV (1) 

V (2) 
(3) 

vn (1) 

V (3) 
I (4) 

V (2) 


$70,000.00 

6,000.00 

90.00 

20.00 

3.000.00 

14,000.00 

837. 22 

4,840.00 

36.00 

200.00 


$70, 000. 00 




6, 000. 00 




1 110.00 






I 17,837.22 
4,840.00 




36.00 




200.00 










99,023.22 











During the month of December, 8 arms im- 
port licenses were issued, making a total of 
156 such licenses issued during the current 
year. 

Categokies of Arms, Ammunition, and 
Implements of War 

The categories of arms, ammunition, and im- 
plements of war in the appropriate column of 
the tables printed above are the categories into 
which those articles were divided in the Presi- 
dent's proclamation of May 1, 1937, enumerat- 
ing the articles which would be considered as 
arms, ammunition, and implements of war for 
the purposes of section 5 of the joint resolution 
of May 1, 1937, as follows : 

Category I 

(1) Rifles and carbines using ammunition in 
excess of caliber .22, and barrels for those 
weapons ; 

(2) Machine guns, automatic or autoloading 
rifles, and machine pistols using ammunition in 
excess of caliber .22, and barrels for those 
weapons ; 

(3) Guns, howitzers, and mortars of all cali- 
bers, their mountings and barrels; 

(4) Ammunition in excess of caliber .22 for 
the arms enumerated under (1) and (2) above, 
and cartridge cases or bullets for such ammuni- 
tion; filled and unfilled projectiles for the arms 
enumerated under (3) above; 

(5) Grenades, bombs, torpedoes, mines and 
depth charges, filled or unfilled, and apparatus 
for their use or discharge ; 

(6) Tanks, military armored vehicles, and 
armored trains. 



120 



DEPABTMENT OF STATE BtTLLETIK 



Category II 

Vessels of war of all kinds, including aircraft 
carriers and submarines, and armor plate for 
such vessels. 

Category III 

(1) Aircraft, unassembled, assembled, or dis- 
mantled, both heavier and lighter than air, 
which are designed, adapted, and intended for 
aerial combat by the use of machine guns or 
of artillery or for the carrying and dropping 
of bombs, or which are equipped with, or which 
by reason of design or construction are pre- 
pared for any of the appliances referred to in. 
paragraph (2) below; 

(2) Aerial gun mounts and frames, bomb 
racks, torpedo carriers, and bomb or torpedo 
release mechanisms. 

Category IV 

(1) Revolvers and automatic pistols using 
ammunition in excess of caliber .22; 

(2) Ammunition in excess of caliber .22 for 
the arms enumerated under (1) above, and 
cartridge cases or bullets for such ammunition. 

Category V 

(1) Aircraft, unassembled, assembled or dis- 
mantled, both heavier and lighter than air, 
other than those included in Category III ; 

(2) Propellers or air screws, fuselages, hulls, 
wings, tail units, and under-carriage units; 

(3) Aircraft engines, unassembled, assem- 
bled, or dismantled. 

Category VI 

(1) Livens projectors and flame throwers; 

(2) a. Mustard gas (dichlorethyl sulphide); 

b. Lewisite (chlorvinyldichlorarsine and 

dichlordivinylchlorarsine) ; 

c. Methyldichlorarsine ; 

d. Diphenylchlorarsine ; 

e. Diphenylcyanarsine ; 

f . Diphenylammechlorarsine ; 

g. Phenyldichlorarsine ; 
h. Ethyldichlorarsine; 

i. Phenyldibromarsine; 
j. Ethyldibromarsine ; 
k. Phosgene; 

1. Monochlormethylchlorformate ; 
m. Trichlormethylchlorformate (diphos- 

gene) ; _ 
n. Dichlordimethyl Ether; 
o. Dibromdimethyl Ether; 
p. Cyanogen Chloride; 
q. Ethylbromacetate; 
r. Ethyliodoacetate; 
8. Brombenzylcyanide; 



t. Bromacetone; 

u. Brommethylethyl ketone. 

Category VII 

(1) Propellant powders; 

(2) High explosives as follows: 

a. Nitrocellulose having a nitrogen con- 

tent of more than 12%; 

b. Trinitrotoluene; 

c. Trinitroxylene ; 

d. Tetryl (trinitrophenol methyl nitra- 

mine or tetranitro methylaniline) ; 

e. Picric acid; 

f. Ammonium picrate; 
g. Trinitroanisol ; 

h. Trinitronaphthalene ; 

i. Tetranitronaphthalene; 

j . Hexanitrodiphenylamine ; 

k. Pentaerythritetetranitrate (Penthrite 
or Pen trite) ; 

1. Trimethylenetrinitramine (Hexogen 
orT^); 
m. Potassium nitrate powders (black 
saltpeter powder) ; 

n. Sodium nitrate powders (black soda 
powder) ; 

o. Amatol (mixture of ammonium ni- 
trate and trinitrotoluene) ; 

p. Ammonal (mixture of ammonium 
nitrate, trinitrotoluene, and pow- 
dered aluminum, with or without 
other ingredients) ; 

q. Schneiderite (mixture of ammonium 
nitrate and dinitronaphthalene, 
with or without other ingredients). 

Special Statistics in Regard to Arms 
Exports to Cuba 

In compliance with article II of the conven- 
tion between the United States and Cuba to 
suppress smuggling, signed at Habana, March 
11, 1926, which reads in part as follows : 

"The High Contracting Parties agree that 
clearance of shipments of merchandise by water, 
air, or land, from any of the ports of eithei 
country to a port of entry of the other country, 
shall be denied when such shipment comprises 
articles the importation of which is prohibited 
or restricted in the country to which such ship- 
ment is destined, unless in this last case then 
has been a compliance with the requisites de- 
manded by the laws of both countries." 

and in compliance with the laws of Cuba whicl ' 
restrict the importation of arms, ammunition 



JANTJAKY 27, 1940 

md implements of war of all kinds by requir- 
ing an import permit for each shipment, export 
licenses for shipments of arms, ammunition, 
ind implements of war to Cuba are required 
for the articles enumerated below in addition 
to the articles enumerated in the President's 
proclamation of May 1, 1937 : 

(1) Arms and small arms using ammunition 
of caliber .22 or less, other than those classed as 
toys. 

(2) Spare parts of arms and small arms of 
all kinds and calibers, other than those classed 
as toys, and of guns and machine guns. 

(3) Ammunition for the arms and small 
arms under (1) above. 

(4) Sabers, swords, and military machetes 
with cross-guard hilts. 

(5) Explosives as follows : explosive powders 
of all kinds for all purposes ; nitrocellulose hav- 
ing a nitrogen content of 12 percent or less; di- 
phenylamine ; dynamite of all kinds ; nitroglyc- 
Brine; alkaline nitrates (ammonium, potas- 
sium, and sodium nitrate); nitric acicl; nitro- 
benzene (essence or oil of mirbane) ; sulphur; 
sulphuric acid; chlorate of potash; and 
acetones. 

(6) Tear gas (CeHaCOCHoCl) and other 
similar nontoxic gases and apparatus designed 
for the storage or projection of such gases. 

The table printed below indicates, in respect 
to licenses authorizing the exportation to Cuba 
of the articles and commodities listed in the 
preceding paragi-ajoh issued by the Secretai'y of 
State during December 1939, the number of 
licenses and the value of the articles and com- 
modities described in the licenses : 



121 



Number of licenses 


Section 


Value 


Total 


27 


(1) 


$495.05 

39.00 

2,846.00 

8, 221. 87 






(2) 






(3) 






(5) 











The table printed below indicates the value 
of the articles and commodities listed above ex- 
ported to Cuba during December 1939 under 
licenses issued by the Secretary of State: 



Section 


Valus 


Total 


(1) 


$1,046.15 

190. 70 

16,119.00 

20, 947. 25 




(2) 


$38,333.10 


(3) 


(5) 









Tin-Plate Scrap 

The table printed below indicates the number 
of licenses issued during the year 1939, up to and 
including the month of December, authorizing 
the export of tin-plate scrap under the provi- 
sions of the act approved February 15, 1936, 
together with the number of tons authorized to 
be exported and the value thereof : 





December 1939 


12 montlis ending 
December 31, 1939 


Country ol destination 


Quantity 
in long 
tons 


Total 
value 


Quantity 

in long 

tons 


Total 
value 




385 


$6,897.00 


10,699 


$200, 497. 52 







During the month of December, 9 tin-plate 
scrap licenses were issued, making a total of 
172 such licenses issued during the cun-ent year. 

Helium 

The table printed below gives the essential 
information in regard to the licenses issued dur- 
ing the month of December 1939 authorizing 
the exportation of helium gas under the provi- 
sions of the act approved on September 1, 1937, 
and the regulations issued pursuant thereto : 









Quan- 




Applicant for license 


Purchaser in foreign 
country 


Country of 
destination 


tity in 
cubic 
feet 


Total 
value 


The Linde Air 


The 0. H. Johns 


Canada 


0.353 


$4S.OO 


Products Co. 


Glass Co., Ltd. 








The Linde Air 


WesternClaude 


Canada 


.1412 


22.60 


Products Co. 


Neon Lights, Ltd. 








The Linde Air 


Ryo Tshiyama 


Japan 


.0706 


11.20 


Products Co. 










The Ohio Chemi- 


Clarendon Labora- 


Great Brit- 


200 


16.00 


cal & MIg. Co. 


tory. 


ain. 







122 



DEPARTMENT OF STATE BULiLETIN 



General 



PASSPORT STATISTICS 

[Released to the press January 22] 

The following information concerning per- 
sons procuring passports or renewals has been 
compiled from passport and renewal applica- 
tions received by the Department of State dur- 
ing the calendar year ending December 31, 1939 : 

occtipation 

Accountant 625 

Actor 365 

Architect 157 

Artist 643 

Banlser, broker 982 

Buyer, exporter, importer 759 

Clerls, secretary 5, 252 

Contractor 321 

Doctor 1, 281 

Draftsman 284 

Druggist 83 

Engineer __ 2, 625 

Executive 3, 313 

Farmer, rancher 1, 014 

Florist 329 

Housewife 13,274 

Interior decorator 140 

LatMjrer (common) 1,622 

Liiborer (skilled) 11,523 

Lawyer ; 1, 099 

Librarian 320 

Manufacturer 963 

Merchant 1,686 

Miscellaneous 2, 873 

Missionary 1, 139 

Musician 586 

None 7, 600 

Nurse ^ 1,276 

Religious 1, 824 

Restaurateur 571 

Retired 2, 104 

Salesman 1, 834 

Scientific 777 

Servant 1, 805 

Student 8, 780 

Teacher 7, 705 

Technician 433 

Tradesman 850 

Writer 1, 033 

Total 89, 850 

DESTINATION 

Africa 1,074 

All countries" 460 

Australia and New Zealand . 1, 207 

Eastern Europe 4,018 

Far Bast 5,409 

Latin America 13, 951 

Near Bast 4,997 

Western Europe 65, 163 

Canada and Newfoundland 44 



OBJECT OF TRAVEL 

Commercial 5, 265 

Education __ 3, 689 

Employment '— 5, 399 

Family affairs 3, 597 

Health 869 

Personal business 23, 790 

Professional 2, 479 

Religious 1, 861 

Scientific 360 

Travel 42, 541 

APPLICANT 

Native 57, 896 

Naturalized 31, 954 

Male 48, 820 

Female 41, 030 

ADDITIONAL PEKSONS INCLUDED IN PASSPOBTS 

Adults 13, 200 

Minors 10, 431 

PEBVIOUS PASSPOETS 

Number of applicants having been previously 

issued American passports 31, 048 



PERMANENT RESIDENCE, 1939 

Number 
receiving 
passDorts 
or re- 
newals 

Alabama 300 

Alaska 28 

Arizona 263 

Arkansas 176 

California 10, 525 

Colorado 570 

Connecticut 2, 356 

Delaware 224 

District of Columbia 1, 085 

Florida 879 

Georgia 394 

Idaho 147 

Illinois 6, 300 

Indiana 961 

Iowa 587 

Kansas 430 

Kentucky 340 

Louisiana 769 

Maine 325 

Maryland 1, 114 

Massachusetts 5, 415 

Michigan 2,921 

Minnesota 1, 236 

Mississippi 181 

Missouri 1,393 

Montana 218 

Nebraska 364 

Nevada 109 

New Hampshire 252 

New Jersey 5, 855 

New Mexico 158 

New York City 18, 424 



Percent 
of total 

0.34 
0.03 
0.29 
0.20 

11.71 
0.63 
2.62 
0.25 
1.20 
0.98 
0.44 
0. 16 
7.01 
1.07 
0.65 
0.48 
0.38 
0.86 
0.36 
1.24 
6.03 
3.25 
1.38 
0. 20 
1.55 
0.24 
0.41 
0. 12 
0.28 
6.51 
0. 18 

20.51 



• While a great raany applicants inserted "All countries' 
In the space provided In applications for destination. It Is the 
opinion of the Department of Stnte that practically all who 
gave "All countries" as their destination contemplated visU- 
ing western Europe. 



fAlTUABY 27, 1940 

PEBMANENT RESIDENCE, 1939 — Continued 

Number 
receiving 
passports 

or re- Percent 

newals of total 

Tew York State I' 6,080 6.77 

forth Carolina 448 0.50 

forth Dakota 124 0. 14 

)hio 3,824 4.26 

Iklahoma 678 0.75 

Iregon 585 0.65 

'ennsylvania 5,895 6.56 

Ihode Island 652 0.72 

outh Carolina 198 0.22 

outh Dakota 147 0. 16 

'ennessee 369 0. 41 



123 



PEBMANENT BESIDENCE, 1939 — Continued 

Number 
receiving 
passports 

or re- Percent 

newals of total 

Texas 2,180 2.43 

Utah 419 0.47 

Vermont 164 0. 18 

Virginia 743 0.83 

Washington 1,098 1.22 

West Virginia 297 0.33 

Wisconsin 1,518 1.69 

Wyoming 132 0. 15 

89, 850 100. 00 

' Exclusive of New York City. 



Foreign Service of the United States 



lESIGNATION OF JOSEPH E. DAVIES AS AMBASSADOR TO BELGIUM AND 
MINISTER TO LUXEMBURG 



Released to the press by the White House January 23] 

The President has accepted the formal resig- 
lation of Joseph E. Davies as Ambassador to 
Belgium and Minister Plenipotentiary to 
l-uxemburg. 

Ambassador Davies' letter of resignation to 
he President dated January 15, 1940, reads as 
follows : 

'Mt Dear Mb. President: 

"Herewith I confirm my previous oral resig- 
lation, as of January 16, as Ambassador to 
Belgium and Minister Plenipotentiary to Lux- 
embourg in order that I may assume the duties 
Df my new post as special assistant to the Secre- 
tary of State as an adviser on war emergency 
problems and policies. 

"May I be permitted to express to you the 
pride which I find in the fact that you and the 
Secretary of State should have imposed this 
renewed confidence in me? 

"May I also say, as I am now retiring from 
active diplomatic service abroad, that I found 
the highest personal satisfaction in serving my 



country as your personal representative to the 
Governments of Kussia, Belgium and Luxem- 
bourg? In no less degree do I value the fact 
that this gave me the opportunity to be identi- 
fied with, and perhaps to be of some small serv- 
ice to, your great administration. I shall 
always be grateful to you. 
"Sincerely yours, 

Joseph E. Davies" 

In accepting the Ambassador's resignation, 
the President replied January 23, 1940, as fol- 
lows: 

"Mr Dear Joe : 

"In order to make it possible for you to as- 
sume the duties of your new post as Special 
Assistant to the Secretary of State, I accept 
herewith your resignation as Ambassador to 
Belgium and Minister to Luxembourg, effective 
as of January sixteenth. 

"I do this with less misgiving because through 
your new work in the Department of State we 
shall continue to have the benefit of your wide 



124 



DEPARTMENT OF STATE BUTTiETDT 



experience in Europe and your critical estimate 
of developments there. 

"Now that you are formally relinquishing the 
posts in Brussels and in Luxembourg, I do want 
to assure you of my deep appreciation of the 
excellent work you have done there and I feel 
also that it is due you to say, particularly, that 
your reports from your recent posts, as well as 
those sent previously from Moscow, were 
extremely valuable. 



"You exercised a happy faculty in evaluat- 
ing events at hand and determining with singu- 
lar accuracy their probable effect on future de- 
velopments. Your judgements of men and 
measures were sound and dependable. On this 
account I feel it is particularly fortunate that 
we are to have the continued benefit of your 
guidance and counsel in foreign affairs. 
"Very sincerely yours, 

Franklin D. Roosevelt" 



Treaty Information 



Compiled by the Treaty Division 



NAVIGATION 

Great Lakes-St. Lawrence Waterway 
Project 

Following is a statement by the Secretary of 
State : 

"We are glad to welcome Dr. Skelton, the 
Under Secretary of State for External Affairs 
of Canada, and his colleagues,* who have come 
to Washington for the purpose of continuing 
negotiations for a new treaty providing for the 
development of the St. Lawrence River and the 
Great Lakes Basin. 

"Both Canada and the United States have 
been interested in this development for many 
years. The treaty which was negotiated cover- 
ing this subject in 1932 met with certain objec- 
tions ; and as a result, both the Canadian Gov- 
ernment and ourselves decided to reopen the 
negotiations on a new basis, looking towards 
the conclusion of a new treaty dealing with the 
Great Lakes-St. Lawrence Basin as a whole. 

"In a world in which so much of international 
relations arises out of unhappiness, it is gratify- 



'The Canadian delegation is composed of: Dr. O. D. 
Sltelton ; Mr. .1. E. Read ; Mr. Guy A. Lindsay ; Mr. T. 
H. Hogg; and Mr. Olivier Lefebvre. 



ing to be able to take up a project which is con- 
structive, and whose object is to improve the 
economic well-being of the peoples of both 
countries." 

The Canadian delegation on the Great Lakes- 
St. Lawrence Basin Project arrived in Washing- 
ton on January 21. On Monday, January 22, 
conversations with the United States delega- 
tion were resumed in the Department of State. 
These conversations continued through the 
afternoon of January 24. Dr. O. D. Skelton, 
Under Secretary of State for External Affairs 
and head of the Canadian delegation, and his 
associates left Washington to return to Ottawa 
the afternoon of January 24. Before their de- 
parture, the following joint statement on behalf 
of the two delegations was agreed upon: 

"During the discussions the whole field was 
covered, and definite progress was made. The 
discussions have now reached the point where 
it is necessary for the two delegations to report 
to their respective Governments on various mat- 
ters of policy requiring their consideration and 
decision. 

"The engineering advisers of the two Govern- 
ments have reached substantial agreement on 
the feasibility and desirability of a project in 



JANUABT 27, 1940 

the International Rapids section of the St. 
Lawrence River which would involve a main 
dam in the vicinity of Barnhart Island, with 
a power house in each country, and a control 
dam upstream. This project is based upon a 
plan which was discussed in some detail in the 
1926 report of the Joint Board of Engineers. 
The engineers of the two countries are in agree- 
ment that such a project is sound from an engi- 
neering standpoint, cheaper in cost than the 
project on which the 1932 Treaty was based, 
and affords full protection for all the interests 
in the various sections of the St. Lawrence 
River. 

"The negotiations will continue through 
diplomatic channels." 

TELECOMMUNICATIONS 

International Telecommunication Conven- 
tion (Treaty Series No. 867) 

Greece 

According to notification No. 347, dated Jan- 
uary 1, 1940, from the Bureau of the Interna- 
tional Telecommunication Union at Bern, the 
Greek Government has approved the following 
regulations and protocols annexed to the In- 
ternational Telecommunication Convention of 
December 9, 1932, as revised at Cairo in 1938: 

General Radio Regulations and Final Proto- 
col (revision of Cairo, 1938) 

Additional Radio Regulations and Addi- 
tional Protocol (revision of Cairo, 1938) 

Telegraph Regulations and Final Protocol 
(revision of Cairo, 1938) 

Telephone Regulations and Final Protocol 
(revision of Cairo, 1938). 

International Telephone Consulting 
Committee 

Free City of Danzig 

According to notification No. 346, dated De- 
cember 16, 1939, from the Bureau of the Inter- 
national Telecommunication Union at Bern, the 
German Administration, by a letter dated No- 
vember 27, 1939, requested the Union to notify 
its members that the Free City of Danzig, 



125 

ceasing to be a member of the International 
Telecommunication Union, in consequence 
ceases to belong to the International Telephone 
Consulting Committee. 

RESTRICTION OF WAR 

Convention for the Amelioration of the 
Condition of the Wounded and the Sick 
of Armies in the Field (Treaty Series 
No. 847) 

Belgium 

The American Embassy at Brussels trans- 
mitted to the Secretary of State with a despatch 
dated January 3, 1940, a copy and translation of 
a note from the Belgian Foreign Office of De- 
cember 29, 1939, requesting in conformity with 
the provisions of article 10 of the Convention 
for the Amelioration of the Condition of the 
Wounded and the Sick of Armies in the Field, 
signed at Geneva on July 27, 1929, that the Em- 
bassy notify this Government, as a party to the 
convention, that the Red Cross of Belgium is 
duly recognized and authorized by the Belgian 
Government to collaborate with the Health 
Service of the Army. 

EDUCATION 

Proces-Verbal Concerning the Application 
of Articles IV, V, VI, VII, IX, XII, and 
XIII of the Convention of October 11, 
1933, for Facilitating the International 
Circulation of Films of an Educational 
Character 

Australia 

According to a circular letter from the League 
of Nations dated December 22, 1939, the Proc^s- 
Verbal Concerning the Application of Articles 
IV, V, VI, VII, IX, XII, and XIII of the Con- 
vention of October 11, 1933, for Facilitating the 
International Circulation of Films of an Edu- 
cational Character, which was opened for signa- 
ture at Geneva on September 12, 1938, was 
signed on behalf of Australia, including the 
territories of Papua and Norfolk Island and the 
mandated territories of New Guinea and Nauru, 
on December 14, 1939. 



124 



DEPARTMENT OF STATE WTTTT.Tf.TriT 



experience in Europe and your critical estimate 
of developments there. 

"Now that you are formally relinquishing the 
posts in Brussels and in Luxembourg, I do want 
to assure you of my deep appreciation of the 
excellent work you have done there and I feel 
also that it is due you to say, particularly, that 
your reports from your recent posts, as well as 
those sent previously from Moscow, were 
extremely valuable. 



"You exercised a happy faculty in evaluat- 
ing events at hand and determining with singu- 
lar accuracy their probable effect on future de- 
velopments. Your judgements of men and 
measui'es were sound and dependable. On this 
account I feel it is particularly fortunate that 
we are to have the continued benefit of your 
guidance and counsel in foreign affairs. 
"Very sincerely yours, 

Franklin D. Koosevelt" 



Treaty Information 



Compiled by the Treaty Division 



NAVIGATION 

Great Lakes-St. Lawrence Waterway 
Project 

Following is a statement by the Secretary of 
State : 

"We are glad to welcome Dr. Skelton, the 
Under Secretary of State for External Affairs 
of Canada, and his colleagues,* who have come 
to Washington for the purpose of continuing 
negotiations for a new treaty providing for the 
development of the St. Lawrence River and the 
Great Lakes Basin. 

"Both Canada and the United States have 
been interested in this development for many 
years. The treaty which was negotiated cover- 
ing this subject in 1932 met with certain objec- 
tions ; and as a result, both the Canadian Gov- 
ernment and ourselves decided to reopen the 
negotiations on a new basis, looking towards 
the conclusion of a new treaty dealing with the 
Great Lakes-St. Lawrence Basin as a whole. 

"In a world in which so much of international 
relations arises out of unhappiness, it is gratify- 



°The Canadian delegation is composed of: Dr. O. D. 
Skelton ; Mr. .J. E. Read ; Mr. Guy A. Lindsay ; Mr. T. 
H. Hogg; and Mr. Olivier Lefebvre. 



ing to be able to take up a project which is con- 
structive, and whose object is to improve the 
economic well-being of the peoples of both 
countries." 

The Canadian delegation on the Great Lakes- 
St. Lawrence Basin Project arrived in Washing- 
ton on January 21. On Monday, January 22, 
conversations with the United States delega- 
tion were resumed in the Department of State. 
These conversations continued through the 
afternoon of January 24. Dr. O. D. Skelton, 
Under Secretary of State for External Affairs 
and head of the Canadian delegation, and his 
associates left Washington to return to Ottawa 
the afternoon of January 24. Before their de- 
parture, the following joint statement on behalf 
of the two delegations was agreed upon : 

"During the discussions the whole field was 
covered, and definite progress was made. The 
discussions have now reached the point where 
it is necessary for the two delegations to report 
to their respective Governments on various mat- 
ters of policy requiring their consideration and 
decision. 

"The engineering advisers of the two Govern- 
ments have reached substantial agreement on 
the feasibility and desirability of a project in 



JANTJABT 27, 1940 

the International Rapids section of the St. 
Lawrence River which would involve a main 
dam in the vicinity of Barnhart Island, with 
a power house in each country, and a control 
dam upstream. This project is based upon a 
plan which was discussed in some detail in the 
1926 report of the Joint Board of Engineers. 
The engineers of the two countries are in agree- 
ment that such a project is sound from an engi- 
neering standpoint, cheaper in cost than the 
project on which the 1932 Treaty was based, 
and affords full protection for all the interests 
in the various sections of the St. Lawrence 
River. 

"The negotiations will continue througli 
diplomatic channels." 



TELECOMMUNICATIONS 

'international Telecommunication Conven- 
tion (Treaty Series No. 867) 

Greece 

According to notification No. 347, dated Jan- 
uary 1, 1940, from the Bureau of the Interna- 
tional Telecommunication Union at Bern, the 
Greek Government has approved the following 
regulations and protocols annexed to the In- 
ternational Telecommunication Convention of 
December 9, 1932, as revised at Cairo in 1938: 

General Radio Regulations and Final Proto- 
col (revision of Cairo, 1938) 

Additional Radio Regulations and Addi- 
tional Protocol (revision of Cairo, 1938) 

Telegraph Regulations and Final Protocol 
(revision of Cairo, 1938) 

Telephone Regulations and Final Protocol 
(revision of Cairo, 1938). 

International Telephone Consulting 
Committee 

Free City of Danzig 

According to notification No. 346, dated De- 
cember 16, 1939, from the Bureau of the Inter- 
lational Telecommunication Union at Bern, the 
jrerman Administration, by a letter dated No- 
i^ember 27, 1939, requested the Union to notify 
.ts members that the Free City of Danzig, 



125 

ceasing to be a member of the International 
Telecommunication Union, in consequence 
ceases to belong to the International Telephone 
Consulting Committee. 

RESTRICTION OF WAR 

Convention for the Amelioration of the 
Condition of the Wounded and the Sick 
of Armies in the Field (Treaty Series 
No, 847) 

Belgium 

The American Embassy at Brussels trans- 
mitted to the Secretary of State with a despatch 
dated January 3, 1940, a copy and translation of 
a note from the Belgian Foreign OflBce of De- 
cember 29, 1939, requesting in conformity with 
the provisions of article 10 of the Convention 
for the Amelioration of the Condition of the 
Wounded and the Sick of Armies in the Field, 
signed at Geneva on July 27, 1929, that the Em- 
bassy notify this Government, as a party to the 
convention, that the Red Cross of Belgium is 
duly recognized and authorized by the Belgian 
Government to collaborate with the Health 
Service of the Army. 

EDUCATION 

Proces-Verbal Concerning the Application 
of Articles IV, V, VI, VII, IX, XII, and 
XIII of the Convention of October 11, 
1933, for Facilitating the International 
Circulation of Films of an Educational 
Character 

Australia 

According to a circular letter from the League 
of Nations dated December 22, 1939, the Proces- 
Verbal Concerning the Application of Articles 
IV, V, VI, VII, IX, XII, and XIII of the Con- 
vention of October 11, 1933, for Facilitating the 
International Circulation of Films of an Edu- 
cational Character, which was opened for signa- 
ture at Geneva on September 12, 1938, was 
signed on behalf of Australia, including the 
territories of Papua and Norfolk Island and the 
mandated territories of New Guinea and Nauru, 
on December 14, 1939. 



126 



REFUGEES 



Additional Protocol to the Provisional Ar- 
rangement of July 4, 1936, and to the 
Convention of February 10, 1938, Concern- 
ing the Status of Refugees Coming From 
Germany 

Great Britain 

According to the League of Nations publica- 
tion Registration of Treaties^ No. 218, Novem- 
ber 1939, the signature by Great Britain to the 
Additional Protocol to the Provisional Ar- 
rangement of July 4, 1936, and to the Conven- 
tion of February 10, 1938, Concerning the 
Status of Refugees Coming From Germany, 
which was opened for signature at Geneva on 
September 14, 1938, has now been rendered 



DEPARTMENT OF STATE BULLETIN 

definitive (see page 734 of the Bulletin for De- 
cember 23, 1939 (Vol. I, No. 26) ) . 



Publications 



Depaetment of State 

Compensation for Expropriated Lands : Agreement Be- 
tween the United States of America and Mexico.^Ef- 
fected by exchanges of notes signed November 9 and 
12, 1938, and April 17 and 18. 1939. Executive Agree- 
ment Series No. 158. Publication 1412. 10 pp. 5^. 

Other Government Agencies 

Annual Report of the Governor of the Panama Canal 
for the Fiscal Year Ended June 30, 1939. H. Doc. 501, 
76th Cong., 2d sess. vii, 156 pp. 200. 



. COVERNMENT PRINTING OFPICEi 



For sale by the Superintendent of Documents, Waeblngton, D. C. — Price 10 cents ----- Subscription price, $2.75 a year 

FDBLISHES WEBKLT WITH TUX APPBOVAL OF IHB DIRECTOB OF THE BDBEAD OF THE BUDGET 



^^LA-<^^ 



THE DEPARTMENT OF STATE 



BULL 



"^ 



tiTI 




FEBRUARY 3, 1940 
Vol. II: No. J 2 — Publication 1 4 JO 



Qontents 




Commercial Policy: 

Statement by the Secretary of State 

Europe: 

Proposed trans-Atlantic air service with Scandinavian 

countries 

Letter from the Pope in reply to the President's Christ- 
mas message 

Supplementary Extradition Treaty with Switzerland . 
Contributions for relief in belligerent countries .... 
Department.\l Service: 

Appointment of Breckinridge Long as an Assistant 

Secretary of State 

General: 

Address by Assistant Secretary Berle 

Insurance for America: Address by Joseph E. Davies . 

Investigation of reported cure for leukemia 

International Conferences, Commissions, etc.: 
International Fisheries Commission, United States and 

Canada 

Study of fishery problems. United States and Canada . 
Foreign Service of the United States: 

Personnel changes 

Publications 

Treaty Information: 
Extradition: 
Supplementary Extradition Treaty with Switzerland . 

iOver\ 



Page 
129 



130 

130 
132 
132 



138 

139 
143 
145 



145 
146 



146 
148 



149 






Treaty Information — Continued. 

Fisheries : page 

Convention for the Preservation of the Halibut 
Fisheiy of the Northern Pacific Ocean and Bering 

Sea (Treaty Series No. 917) 149 

Navigation : 

Agreement for a Uniform System of Maritime Buoy- 
age, and Rules Annexed Thereto 149 

Postal: 

Universal Postal Convention of 1939 149 

Transit : 

Convention with Panama Regarding the Construc- 
tion of a Trans-Isthmian Highway (Treaty Series 
No. 946) 150 



Commercial Policy 



STATEMENT BY THE SECRETARY OF STATE 



[Eeleased to the press January 29] 

I observe from the press that some artful 
persons have sent me a letter under the name 
of Congressman Koy O. Woodruff of Michigan. 
I have not yet been able to locate the letter, but 
according to press reports it has already been 
circulated by the old-guard segment of the Re- 
publican National Committee. 

There is no news and no sincere jJurpose m 
referring back to my official attitude during 
the twenties when I opposed any flexibility in 
tariff making. It is, of course, true that, during 
the twenties, many of us were waging earnest 
opposition to steadily mounting embargoes and 
excesses in our tariff and trade policy. But 
that is neither here nor there. Despite our 
efforts, the unprecedented economic collapse, to 
which the Hawley-Smoot Act contributed so 
powerfully, came upon the country, with re- 
sulting bankruptcy to agriculture, labor, and 
business. 

In 1933 it was manifest to everybody that 
there existed terrific emergency conditions call- 
ing for treatment by emergency Government 
agencies. Such governmental agency and 
policy, within limits prescribed by Congress, 
offered the only practical course toward restor- 
ing our exports by mutually satisfactorj' trade 
irrangements with other countries, designed to 
accomplish reciprocal reduction of excessive 
rade barriers and restrictions. 

This emergency plan thus far has worked 
s-ell despite the extraordinary difficulties with 
vhich it has had to deal. It is common knowl- 
■dge that a grave crisis existed in the trade and 

208268 — 10 1 



general economic situation when the first re- 
ciprocal trade measure was enacted in 1934, 
and when it was extended for 3 years in 1937. 
Everyone knows that, by reason of war, a still 
more grave international condition exists to- 
daj'. Hence the proposal to extend for another 
3-year period this temporary agency to deal 
with abnormal conditions, coupled with the re- 
newed statement that when the emergency sit- 
uation has been sufficiently improved. Congress 
and the country can then determine a perma- 
nent commercial policy in the light of the new 
and changed conditions everywhere and of the 
weight of judicial opinion. 

For this course and attitude none of us have 
the slightest apologies to offer, especially to 
those who did all in their power to bring on the 
excesses and the embargoes of the Hawley- 
Smoot policy, with the business collapse which 
followed. They themselves have not offered the 
slightest remedy for these awful depression 
conditions except to return straight to the same 
embargo policy that contributed so powerfully 
to wreck the Nation from 1929 to 1932. They 
are the last persons who are in any position to 
upbraid those of us who are striving to cure 
the destructive effects of their policies. Their 
only theory seems to be that the "hair of the 
dog is good for the bite." They should be 
apologizing to the American people for having 
led them into bankruptcy, mainly bj* policies 
of extreme economic nationalism, instead of 
seeking at every step to prevent the work of 
improvement and restoration of international 
trade by the most effective method yet devised. 



PROPOSED TRANS-ATLANTIC AIR SERVICE WITH SCANDINAVIAN 

COUNTRIES II 



[Released to the press February 2] 

Representatives of the air mission from the 
northern countries, which recently arrived in 
the United States, met February 2 with officials 
of the Department of State, the Post Office 
Department, and the Civil Aeronautics Au- 
thority for the purpose of presenting their 
plans for the inauguration of a trans- Atlantic 
air service between the United States and the 
Scandinavian countries. The proposal of the 
Scandinavians contemplates the organization 
of an international company jointly operated 
by the Swedish, Norwegian, Danish, and Fin- 
nish national air lines. 

The delegation plans to confer with repre- 
sentatives of American air-transport com- 
panies either engaged in or proposing the in- 
auguration of trans-Atlantic services and to 
visit various American manufacturers for the 
purpose of discussing available aircraft which 



might be used in the service. The delegation 
will continue its discussions with the various 
interested Government agencies and the avia- 
tion industry. 

The members of the delegation are : 

Bernt Balchen, Technical Manager, D. N. L. 
(Norwegian Air Lines) 

Leif Villars-Dahl, Captain, Barrister at Law, 
Legal Adviser of D. N. L. (Norwegian Air 
Lines) 

Knud Lybye, Captain, Managing Director of 
D. D. L. (Danish Air Lines) 

Arne Krog, Assistant Secretary of the Danish 
Post Office Department 

P. A. Norlin, General Manager of A. B. Aero- 
transport (Swedish Air Lines) and also rep- 
resenting the Finnish AERO o/y. (Fin- 
nish Air Lines) 

Olav Olsen, Chief Clerk of the Swedish Post 
Office Department 

Villi jamur Thor, represents the Post Office De- 
partment of Iceland. 



-f -f -f -f -f -f + 



LETTER FROM THE POPE IN REPLY TO THE PRESIDENT'S 
CHRISTMAS MESSAGE^ 



[Released to the press by the White House January 20] 

Most Excellent Sir: 

Health and Prosperity. 

The memorable message that Your Excel- 
lency was pleased to have forwarded to Us on 
the eve of the Holy Feast of Christmas has 
brightened with a ray of consolation, of hope 
and confidence, the suffering, the heart-rending 
fear and the bitterness of the peoples caught up 
in the vortex of war. For this all right-minded 
men have paid you the spontaneous tribute of 
their sincere gratitude. 



'■ See the Bulletin of December 23, 1939 (Vol. I, No. 
2G), pp. 711-712. 
130 



We have been deeply moved by the noble 
thought contained in your note, in which the 
spirit of Christmas and the desire to see it 
applied to the great human problems have 
found such eloquent expression ; and fully per- 
suaded of its extraordinary importance We lost 
no time in communicating it to the distin- 
guished gathering present that very morning 
in the Consistorial Hall of this Apostolic Vati- 
can Palace, solemnly expressing before the 
world. Catholic and non-Catholic alike, Our 
aijpreciation of this courageous docmnent, in- 
spired by a far-seeing statesmanship and a pro- 
found human sympathy. 



FEBRUARY 3, 1940 



131 



We have been particularly impressed by one 
characteristic feature of Your Excellency's 
message: the vital, spiritual contact with the 
thoughts and feelings, the hopes and the as- 
pirations of the masses of the people, of those 
classes, namely, on whom more than others, and 
in a measure never felt before, weighs the 
burden of sorrow and sacrifice imposed by the 
present restless and tempestuous hour. Also 
for this reason, none perhaps better than We 
can understand the meaning, the revealinjjj 
power and the warmth of feeling manifest in 
this act of Your Excellency. In fact Our own 
daily experience tells Us of the deep-seated 
yearning for peace that fills the hearts of the 
common people. In the measure that the war 
with its direct and indirect repei'cussions 
spreads; and the more economic, social and 
family life is forcibly wrenched from its nor- 
mal bases by the continuation of the war, and 
is forced along the way of sacrifice and every 
kind of privation, the bitter need of which is 
not always plain to all; so much the more in- 
tense is the longing for peace that pervades the 
hearts of men and their determination to find 
and to apply the means that lead to peace. 

When that day dawns — and We would like to 
hope that it is not too far distant — on which 
the roar of battle will lapse into silence and 
there will arise the possibility of establishing a 
true and sound peace dictated by the principles 
of justice and equity, only he will be able to 
discern the path that should be followed who 
unites with high political power a clear under- 
standing of the voice of humanity along with a 
sincere reverence for the divine precepts of life 
as found in the Gospel of Christ. Only men of 
such moral stature will be able to create the 
peace, that will compensate for the incalculable 
sacrifices of this war and clear the way for a 
comity of nations, fair to all, efficacious and 
sustained by mutual confidence. 

We are fully aware of how stubborn the ob- 
stacles are that stand in the way of attaining 
this goal, and how they become daily more 
difficult to surmount. And if the friends of 
peace do not wish their labors to be in vain, 



they should visualize distinctly the sei'iousness 
of these obstacles, and the consequently slight 
probability of immediate success so long as the 
present state of the opposing forces remains 
essentially unchanged. 

As Vicar on earth of the Prince of Peace, 
from the first days of Our Pontificate We have 
dedicated Our efforts and Our solicitude to the 
purpose of maintaining peace, and afterwards 
of reestablishing it. Heedless of momentary 
lack of success and of the difficulties involved. 
We are continuing to follow along the path 
marked out for Us by Our Apostolic mission. 
As We walk this path, often rough and thorny, 
the echo which reaches Us from countless souls, 
both within and outside the Church, together 
with the consciousness of duty done, is for Us 
abundant and consoling reward. 

And now that in this hour of world-wide 
pain and misgiving the Chief Magistrate of the 
great North American Federation, under tlie 
spell of the Holj' Night of Christmas, should 
have taken such a prominent place in the van- 
guard of those who would promote peace and 
generously succor the victims of the war, be- 
speaks a providential help, which We acknowl- 
edge with grateful joy and increased confi- 
dence. It is an exemplary act of fraternal and 
hearty solidarity between the New and the Old 
World in defence against the chilling breath of 
aggressive and deadly godless and anti-chris- 
tian tendencies, that threaten to dry up the 
fountainhead, whence civilization has come and 
drawn its strength. 

In such circumstances We shall find a special 
satisfaction, as We have already informed Your 
Excellency, in receiving with all the honor due 
to his well-known qualifications and to the dig- 
nity of his important mission, the representa- 
tive who is to be sent to Us as the faithful 
interpreter of your mind regarding the procur- 
ing of peace and the alleviation of sufferings 
consequent upon the war. 

Recalling with keen joy the pleasant memo- 
ries left Us after Our unforgettable visit to 
your great nation, and living over again the 
sincere pleasure that personal acquaintance 



132 



DEPARTMENT OF STATE BUUjETIN 



with Your Excellency brought Us, We express 
in turn Our hearty good wishes, with a most 
fervent prayer for the prosperity of Your Ex- 
cellency and of all the people of the United 
States. 

Given at Rome, at St. Peter's, the 7th day of 
January 1940, the first Year of Our Pontificate. 
Pitts PP. XII 



SUPPLEMENTARY EXTRADITION 
TREATY WITH SWITZERLAND 

An announcement regarding the signing of a 
supplementary extradition treaty with Switzer- 
land on January 31, 1940, appears in this 
Bulletin imder the heading "Treaty Informa- 
tion." 



-f -f -f -♦--♦• -f -f 

CONTRIBUTIONS FOR RELIEF IN BELLIGERENT COUNTRIES 



[Released to the press January 30] 

Following is a tabulation of contributions 
received and funds expended during the 
months of September, October, November, and 
December 1939 as shown in the reports sub- 
mitted by persons and organizations registered 
with the Secretary of State for the purpose of 
soliciting and receiving contributions for use 
in belligerent countries in conformity with the 
regulations issued pursuant to section 8 of the 
act of November 4, 1939, as made effective by 
the President's proclamation of November 4, 
1939. This tabulation has reference only to 



contributions solicited and collected for relief 
in belligerent countries (France; Germany; 
Poland; and the United Kingdom, India, 
Australia, Canada, New Zealand, and the Union 
of South Africa) or for the relief of refugees 
driven out of these countries by the present 
war. The statistics set forth in the tabulation 
do not include information regarding relief 
activities which a number of organizations 
registered with the Secretary of State may be 
carrying on in nonbelligerent countries, but for 
which registration is not required under the 
Neutrality Act of 1939. 



Contributions for Relief in Belligerent Countries 



Name of organization, city, date of registration, and cotintry or countries 
to which contributions are being sent 



Expendi- 
tures for 

relief in 
countries 

named 



Funds 
spent for 
adminis- 
tration, 
publicity, 

affairs, 

campaigns, 

etc. 



Unex- 
pended 
balance as 
of Dec. 31, 
1939, in- 
cluding 
cost of 
goods pur- 
chased and 
still on 
hand 



Estimated 
value of 
contribu- 
tions in 
kind col- 
lected by 
registrant 

and sent to 
countries 
named 



Estimated 
Value of 
contribu- 
tions in 
kind col- 
lected by 
registrant 
and now 
on hand 



American Auiiliary Committee de L'Union des Femmes de France, New 
York, N. Y., Nov. 8, 1939. France 

American Committee for Aid to British Medical Societies, New York, 
N. Y., Sept. 21, 1939. United Kingdom 

American Committee for Christian Refugees, New York, N. Y., Sept. 26, 
1939. Germany and France 

American Field Service, New York, N. V., Sept. 27, 1939. France. 

American French War Relief, Inc. (formerly French and American Asso- 
ciation for the Relief of War Sufferers), New York, N. Y., Sept. 14, 1939.» 
France. _ 

American Friends of Czechoslovakia. New York, N. Y", Nov. 2, 1939. 
Great Britain, France, and Bohemia-Moravia 

American Friends of France, Inc., New York, N. Y., Sept. 21, 1939. 
France 

American Friends of the Daily Sketch Wa'rReYicf Fund,'New" YoVkVN.'Y.V 
Dec. 1, 1939. Groat Britain 

American Friends Service Committee, Philadelphia, Pa., Nov. 9, 1939. 
United Kingdom, Poland, Germany, and France . .. . 

American Fund for Wounded in France, Inc., Worcester, Mass., Dec. 1.1, 



1939. France. 



$144. 00 
2, 924. 21 



3, S57. 04 
2,551.60 

40, 571. 03 
1, 226. 00 

24, 587. 34 
None 



$10. 00 
None 



None 

744.77 
34, 861. 34 

None 
23, 013. 63 

None 



$27. 26 
1,752.89 



114.71 
1,313.83 
888.65 
None 
1, 673. 71 
None 



$106. 74 
I 
171.32 



None 
30, 196. 50 



3, 742. 33 

492.90 

4,821.04 

1, 226. 00 

None 

None 



$200.00 
None 



2, 884. 65 
6, 225. 00 
734.20 
None 
None 
None 



$126. 00 
6,00 



1.401.82 

None 
674 SO 
None 
None 
None 



I The December statistics of this organization as yet have not been received. 



FEBRUARY 3, 1940 



133 



CoNTRIBtlTIONS FOR RELIEF IN BELLIGERENT COUNTRIES Continued 



Name of organization, city, date of registration, and country or countries 
to which contributions are being sent 



American German Aid Society, Los Angeles, Calif., Nov. 15, 1939. Ger- 
many 

The American Jewish Joint Distribution Committee. Inc.. New York, 
N. Y., Sept. 29. 1939. " United Kingdom, Poland, Germany, and Franco 

American Society for British Medical and Civilian Aid, Inc., New York, 
N. Y., Oct. 19. 1939. Great Britain and Franco _. 

American Society for French Medical and Civilian Aid, Inc., New York, 
N. Y., Oct. 13. 1939. France. _ 

American Volunteers Ambulance, New York, N. Y., Dec. 12, 1939. France 

American Women's Hospitals, New York, N. Y., Sept. 14, 1939. Franco 
and England 

Anciens Combattants Franfais do la Grande Guerre (French War Vet- 
erans), Los Angeles, Calif., Dec. 5, 1939. France _ __ 

Mrs. Lnrz Anderson, Boston, Mass., Dec. 12, 1939. France 

Anthracite Relief Committee, Wilkes-Barre, Pa., Sept. 8. 1939. Poland^^ 

Associated Polish Societies Relief Committee of Webster, Mass., Webster, 
Mass., Sept. 21, 1939. Poland 

Associated Polish Societies' Relief Committee of Worcester, Mass., Wor- 
cester, Mass., Sept. 14, 1939. Poland _.. 

Association of Former Juniors in France of Smith College, New York, 
N. Y.. Dec. 18. 1939. France. 

Association of Joint Polish-American Societies of Chelsea, Mass., Chelsea, 
Mass., Sept. 15, 1939. Poland __. 

Basque Delegation in the United States of America, New York, N. Y., 

The Benedict Bureau Unit. New York.NrY^ Nov." 29^ 1939. France 

Beth-Lechem, Inc., New Y'ork, N. Y., Sept. 21, 1939. Poland 

Bethel Mission of Poland Inc., Minneapolis, Minn., Nov. 27, 1939. Poland- 
Bishops' Committee for Polish Relief, Washington, D. C, Dec. 19, 1939. 

Poland 

Board of National Missions of the Presbvterian Church in the United 

States of America, New York, N. Y., Sept. 26, 1939. Great Britain, 

France, and Germany. 

British-American War Relief Association, Seattle, Wash., Nov. 17, 1939. 

United Kingdom and allied countries 

British War Relief Association of Northern California, San Francisco, 

Calif.. Oct. 20. 1939. Great Britain and France 

The British War Relief Association of Southern California, Los Angeles, 

Calif., Dec. 8, 1939. Great Britain 

British War Relief Society, Inc., New York, N. Y., Dec. 4, 1939. Great 

Britain _ 

Bundles for Britain, New York, N. Y., Dec. 38, 1939. Great Britain and 

dominions - 

The Catholic Leader, New Britain, Conn., Sept. 25, 1939. Poland 

The Catholic Student War Relief of Pax Romana, Washington, D. C, 

Dec. 13, 1939. Poland. France, Germany, and Great Britain 

Central Citizens Committee, Detroit, Mich., Sept. 14, 1939. Poland 

Central Committee Knesseth Israel, New York, N. Y., Oct. 27, 1939. 

Palestine 

Central Committee of the United Polish Societies, Bridgeport, Conn., 

Sept. 14, 1939. Poland 

Central Council of Polish Organizations, New Castle, Pa., Nov. 7, 1939. 

England, Poland, and France 

Central Council of Polish Organizations in Pittsburgh, Pa., Pittsburgh, 

Pa.. Sept. 14. 1939. Poland 

Central Spanish Committee for Relief of Refugees, Washington, D. C, 

Sept. 21, 1939. France 

Centrala. Passaic. N. J., Oct. 12, 1939. Poland. 

Cercle Franfais de Seattle, Seattle, Wash., Nov. 2, 1939. France and 

Great Britain... . 

Chester (Delaware Co., Pa.) Polish Relief Committee, Chester, Pa., 

Sept. 15. 1939. Poland _ 

Circle of Poles of St. Hedwig, Polish American Citizens' Committee, New 

Britain. Conn.. Sept. 20. 19:59. Poland 

Citizens Committee for Relief of War Sufferers in Poland, St. Louis, Mo., 

Oct. 16, 1939. Poland 

Club Amical Franfais, Detroit, Mich., Sept. 15, 1939. France, Poland, 

and Great Britain . . ... 

Commission for Pohsh Relief, Inc., New York, N. Y., Sept. 12, 1939.' 

Poland . ... 

Committee of Mercy, Inc., New York, N. Y., Sept. 16, 1939. France, 

Great Britain, and their allies 



120.00 
105.00 

6. 792. 17 

2, 509. 98 

6, 607. 03 

150.00 

1,358.13 

343. 05 

50.00 
1, 172. 36 
1, 728. 59 

2, 459. 50 

6, 759. 53 
3, 315. 48 

2. 742. 18 
20.00 

6,641.00 



a, 898. 27 

3, 192. 50 

434.64 

12,673.93 

3,044.25 
93196 

1, 794. 68 

3, 513. 12 

2,994.41 

3, 322. 06 

624. 81 

SS, 462. 34 

5, 591. 62 



Expendi- 
tures for 

relief In 
countries 

named 



None 

None 

2, 000. 00 



None 

None 

None 

None 

216. 40 

1,500.00 

None 

3, 745. 60 
None 

1, 709. 43 
None 

None 



4,071.07 
129.20 

None 

10. .599. 28 

45.00 
792. SO 

None 
3. 139. 04 

None 
2, 155. 89 

522.88 
63,254.34 
4, 367. 00 



Funds 
spent for 
adminis- 
tration, 
publicity, 

affairs. 

campaigns, 

etc. 



7.50 

453. 10 

None 

85.67 

16.37 
None 
610. 86 
216. 18 

None 

632. 46 
144.98 
48.62 
None 
664. 56 



2, 827. 20 

48.20 

None 

348.22 

1, 56Z 56 
11.05 

421.15 

241.66 

None 

397.99 

90.92 

16,345.62 

1, 045. 28 



Unex- 
pended 
balance es 
of Doc. 31, 
1939. in- 
cluding 
cost of 
goods pur- 
chased and 
still on 
hand 



120.00 

105.00 

4, 786. 17 

2, 502. 48 

1, 174. 69 

150.00 

1, 272. 46 

326.68 
60.00 

346. 10 
10.41 

2, 459. 50 

1,381.57 

3,170.50 

934.13 

20.00 

6, 976. 44 



None 
3, 015. 10 

434.64 

1, 626. 43 

1, 436. 69 
130. 51 

1.373.53 
132.42 

2, 994. 41 
708.18 
11.01 
None 
189.24 



Estimated 
value of 
contribu- 
tions In 
kind col- 
lected by 
registrant 
and sent to 
countries 
named 



None 
None 
None 

None 

230.00 

None 

None 

None 

None 
None 
None 

None 

None 
None 
664.84 
None 
None 



None 

604.96 

None 

None 

None 
500.00 

None 
1.067.25 

None 
2,000.00 

None 
1.500.00 

None 



Estimated 
value of 
contribu- 
tions in 
kind col- 
lected by 
registrant 
and now 
on hand 



None 
None 
None 

None 

None 

None 

None 

None 
None 
None 
None 

None 

None 
None 
None 
None 
None 



None 

S302. 94 

None 

None 

None 
400.00 

None 

None 

None 

None 

None 

None 

None 



> This organization is engaged in varied relief activities in nonbelligerent as well as belligerent countries. On Dec. 1, the organization had an unex- 
pended balance of .tlOS.051.«4. During the month of Dccem.ber it received and expended for all purposes $1,333.66(1.55 and $1.236.0S5.0.1. respecllvely. leaving 
an unexpended balance at the end of that month of .$205,f 33.14. A break -down of receipts and expenditures for relief in belligerent countries will be shown 
in a subsequent report. 

• The administrative expenses of this organization were incurred not onlv in connection with the contributions received directly by it but also in con- 
nection with the contributions transmitted to it by other registrants in this country to bo used for relief purposes in Poland, or for the relief of Polish 
refugees in neighboring countries. 



134 



DEPAKTMENT OF STATE BUIXETIN 
Contributions for Relief in Belligerent Countries — Continued 



Name of organization, city, date of registration, and country or countries 
to wiiich contributions are being sent 



Expendi- 
tures for 

relief in 
countries 

named 



Funds 
spent for 
adminis- 
tration, 
publicity, 

affairs, 

campaigns, 

etc. 



tJnex- 



balance as 
of Dec. 31, 
1939, in- 
cluding 
cost of 
goods pur- 
chased and 
still on 
hand 



Estimated 
value of 
contribu- 
tions in 
kind col- 
lected by 
registrant 

and sent to 
countries 
named 



Committee for the Relief for Poland, Seattle, Wash., Nov. 24, 1939. 



Poland-. 



Committee of the American Fund for Breton Relief, New York, N. Y., 

Oct. 31, 1939. France - 

Committee of French-American Wives, New York, N. Y., Nov. 16, 1939. 



France. 



Committee Representing Polish Organizations and Polish People in Perry, 

N. Y., Perry, N.Y., Oct. 23, 1939. Poland - 

East Chicago Citizens' Committee for Polish War Sufferers and Refugees, 

East Chicago, Ind., Oct. 16, 1939. Poland. _. 

The Emergency Aid of Pennsylvania, Philadelphia, Pa., Oct. 13, 1939. 

England and France - --- 

The Fashion Group, Inc., New York, N. Y., Nov. 18, 1939. France 

Federated Council of Polish Societies of Grand Rapids, Mich., Grand 

Rapids, iVIich., Sept. 15, 1939. Poland. .._ 

Federation of Franco-Belgian Clubs of Rhode Island, Woonsocket, R. I., 

Nov. 15, 1939. France 

Federation of French Veterans of the Great War, Inc., New York, N. Y., 

Oct. 11, 1939. France- -.. .- - -. 

Federation of Polish Jews in America, Inc., New York, N. Y., Sept. 14, 

1939. Poland - 

The Federation of Polish Societies, Little Falls, N. Y., Oct. 9, 1939. Poland 
Foster Parents' Plan for War Children, Inc., New York, N. Y., Sept. 21, 

1939. France ..- - - 

French Committee for Relief in France, Detroit, Mich., Oct. 17, 1939. 



France. . 



French War Relief, Inc., Los Angeles, Calif., Nov. 16, 1939. France..--. 
The Friends of Israel Refugee Relief Committee, Inc., Philadelphia, Pa., 

Oct. 23, 1939. Canada, France, and England 

The Friends of Normandy, New York, N. Y., Dec. 18, 1939. France 

Friends of Poland, Chicago, 111., Dec. 6, 1939. Poland 

Fund for the Relief of Scientists, Men of Letters, and Artists of Moscow, 

New York, N. Y., Oct. 20, 1939.'' France and England.. 

Irvin McD. Garfield, Boston, Mass., Dec. 18, 1939. England 

General Oustav Orlicz Dreszer Foundation for Aid to Polish Children, 

Washington, D. C, Nov. 3, 1939. Poland... 

General Taufflieb Memorial Relief Committee for France, Santa Barbara, 

Calif., Nov. 17, 1939. France and England- 

Golden Rule Foundation, New York, N. Y., Nov. 2, 1939. Poland and 

Palestine --. 

Greater New Bedford British War Relief Corps, New Bedford, Mass., 

Dec. 19, 1939. Great Britain 

Margaret-Greble Qreenough (Mrs. Carroll Greenough), Washington, 

D. C, Nov. 21, 1939. France 

Hadassah, Inc., New York, N. Y., Nov. 15, 1939. Palestine.. 

Holy Cross Relief Fund Association of New Britain, Conn., New Britain, 

Conn., Sept. 27, 1939. Poland 

Holy Rosary Polish Roman CathoUc Church, Passaic, N. J., Sept. 15, 1939. 

Poland 

A. Seymour Houghton, Jr., (Miss) Ruth T. Stewart, and Augustus S. 

Houghton, New York, N. Y., Nov. 27. 1939. France 

Humanitarian Work Committee, Glen Cove, N. Y., Sept. 30, 1939. 

Poland 



International Artists' Community Club, Washington, D. C, Oct. 7, 
1939.' Poland 

International Committee of Young Men's Christian Associations, New 
York, N. Y., Sept. 22, 1939. Poland, France, and India 

Internationa] Relief Association for Victims of Fascism, New York, N. Y., 
Sept. 25, 1939. France, England, and Germany 

The Kindergarten Unit, Inc., Norwalk, Conn., Oct. 3. 1939. France, 
Poland, United Kingdom, India, Australia, and New Zealand 

Kuryer Publishing Co.. Milwaukee, Wis.. Sept. 16. 1939. Poland 

Der Kyffhaeuscrbund, League of German War Veterans in V. S. A., Phila- 
delphia, Pa.. Nov. 27. 1939. Poland and Germany -- 

Lackawanna County Committee for Polish Relief, Scranton, Pa., Sept. 
IS, 1939. Poland -- .-. 

LaFayette Preventorium, Inc., New York, N. Y., Sept. 21, 1939. France 

League of Polish Societies of New Kensington, Arnold, and vicinity. New 
Kensineton, Pa., Nov. 17, 1939. Poland 

Legion of Young Polish Women, Chicago, 111., Oct. 2, 1939. Poland 



$2, 227. 99 

1, 615. 00 

1, 891. 08 

76.00 

517. 14 

872. 95 
None 

3, 032. 77 

340.00 

1, 021. 00 



7, 430. 70 
237.50 
976. 90 



612. 20 

878. 69 

131.00 

725. 42 

669. 00 
422, 483. 83 

672. 34 

1, 049. 00 

11,413,42 

599.17 

None 

1,111.00 

5,021.16 



None 

$991. 50 

729. 46 

76.00 

600.00 

162.50 
None 

2, 200. 00 

None 

None 



92.60 
None 
None 



None 

869.60 

None 

None 

70.00 
14,986.11 

None 
1, 000. 00 

None 
200.00 

None 

None 
2, 321. 22 



$265. 71 

20.00 

130. 92 

None 

15.44 

214.81 
None 

3.76 

None 

None 



2,416.96 
None 
64.39 



284.64 

19.19 

None 

4.00 

None 
7, 602. 01 

None 

None 

None 

None 

None 

607.61 

1, 907. 05 

186. 12 
11.77 

.42 



$1,972.28 

603.60 

1, 030. 70 

None 

1.70 

495. 64 
None 

829. 02 

340.00 

1,021.00 



4,921.24 
237.60 
922. 51 



327.56 

None 

131.00 

721. 42 

499.00 
199, 996. 71 

572.34 

49.00 

11,413.42 

399.17 

None 

503.39 

792. 89 



None 

None 

$225. 00 

None 

None 

None 
None 

None 

None 

331. 70 



None 
None 
None 



None 

60.00 

None 

None 

None 
i, 741. 65 

None 

None 

None 

None 

None 

None 

860.00 



I The registration of this organization was revoked on Dec. II, 1939, at request of registrant. 
' The registration of this organization was revoked on Dec. 18, 1939, at request of registrant. 



FEBRUARY 3, 1940 



135 



Contributions for Relief in Belligerent Countries— Continued 



Name of organization, city, date of reBistration, and country or countries 
to which contributions are being sent 



Les Amities Ffminines de la France, New York, N. Y., Dec. 19, 1939. 
France .-. .-. 

Les Anciens Combattants Franfais do la Grande Guerre (French War 
Veterans of San Francisco Benevolent Association), San Francisco, 
CalU., Oct. 26, 1939. France _ 

The Little House of Saint Pantaleon, Philadelphia, Pa., Sept. 30, 1939. 
France. 



L'Union Alsacienne, Inc., New York, N. Y., Oct. 28, 1939. France. _ 

Ruth Stanley de Luze (Baroness de Luze), Briarcliff Manor, N. Y., Sept. 
26, 1939./ France 

The Maryland Committee for the Relief of Poland's War Victims, Balti- 
more, Md., Oct. 21, 1939. Poland- 

Massachusetts Relief Committee for Poland, Worcester, Mass., Nov. 9, 
1939. Poland 

Medem Committee, Inc., New York. N. Y., Sept. 22, 1939.« Poland 

Milford, Conn., Polish Relief Fund Committee, Milford, Conn., Nov. 6, 
1939. Poland 

Modjeska Educational League Welfare Club at the International Insti- 
tute, Toledo, Ohio, Sept. 15, 1939. Poland _ 

Fernanda Wanamaker Munn (Mrs. Ector Munn), New York, N. Y., Nov. 
25, 1939. France 

New Jersey Broadcasting Corporation, Jersey City, N. J., Sept. 13, 1939. 
Poland 



Bradford Norman, Jr., New York, N. Y., Oct. 11, 1939.» France 

North Side Polish Council, Relief Committee, of Milwaukee, Wis., Mil- 
waukee, Wis., Dec. 5, 1939. Poland 

Nowe-Dworer Ladies Benevolent Association, Inc., New York, N. Y., Oct. 

25, 1939. Poland 

Nowiny Publishing Apostolate Inc., Milwaukee, Wis., Sept. 26, 1939. 
Poland 



Nowy Swiat Publishing Co., Inc., New York, N. Y., Sept. 11, 1939. 
Poland and France. 

Le Faquet au Front. New York, N. Y., Oct. 6, 1939. France 

The Paryski Publishing Co., Toledo, Ohio, Sept. 15, 1939. Poland 

Poland War Sufferers Aid Committee, Cleveland, Ohio, Sept. 16, 1939. 
Poland- 



Polish Aid Association of the Sixth Congressional District Including Per- 

ham and Browerville, Minn., Little Falls. Minn., Oct. 27, 1939.' Poland. 
'Fundusz Eatunkowy" Polish Aid Fund Committee of Federation of 

Elizabeth Polish Organizations, Elizabeth, N. J., Sept. 23, 1939. Poland. 
Polish American Central Civic Committee of South Bend, Ind., South 

Bend, Ind., Sept. 19, 1939. Poland 

Polish-American Citizens Relief Fund Committee, Shirlev, Mass., Dec. 

16, 1939. Poland 

Polish American Council (formerly The Council of Polish Organizations in 

the United States of America), Chicago, 111., Sept. 15, 1939. Poland 

Polish Army Veterans Association of America, Inc., New York, N. Y., 

Sept. 27, 1939. Poland 

Polish Broadcasting Corporation, New York, N. Y., Sept. 23, 1939. 

Poland, 



Polish Business and Professional Men's Club, Los Angeles, Calif., Nov. 17, 
1939. Poland - .. 

Polish Central Committee of New London, Conn., New London, Conn., 
Oct. 13, 1939. Poland 

Polish Central Council of New Haven, New Haven, Conn., Sept. 29, 1939. 
Poland - 



Polish Civic League of Mercer County, Trenton, N. J., Sept. 19, 1939. 
Poland- 

Polish Civilian Relief Fund, Passaic, N. J., Oct. 27, 1939. Poland 

Polish Club of Washington, Washington, D. C, Sept. 14, 1939. Poland. . 

Polish Emereency Council of Essex County, N. J., Newark, N. J., Sept. 
H, 1939. Poland... 

Polish Episcopal Church in the Diocese of Pennsylvania, Philadelphia, 
Pa., Sept. 26, 1939. Poland. 

Polish Falcons Alliance of America, Pittsburgh, Pa., Sept. 20, 1939. Po- 
land 

Polish Interorganization Council. Detroit, Mich., Oct. li, 1939. Poland. 



1,181.33 

1,419.77 



617.34 

201.82 

4, 060. 36 

22, 246. 77 
35, 790. 28 
4, 481. 30 

15, 763. 48 

535.75 

6,111.19 

6, 982. 91 

None 

91,722.01 

2, 215. 8« 

959. 61 

None 

573.65 

1,369.95 

4. 884. 61 

2, 246. 61 

807. 21 



Expendi- 
tures for 

relief in 
countries 

named 



1,181.33 

None 

None 
708.50 

None 

2, 329. 22 

420.50 

826.17 
5, 154. 01 

None 

None 

2,160.00 

20, 534. 72 
27, 494, 97 
3, 892. 05 

14, 898. 87 

None 

100.00 

6,058.11 

None 

30,875.35 

None 

None 

None 

350.00 

None 

4, 787. 26 
None 
446. 31 

8, 605. 96 

None 



Funds 
spent for 
adminis- 
tration, 
publicity, 

aflairs, 

campaigns, 

etc. 



None 
6S2. 35 



277.47 

538.42 

384.38 
2,375.99 

None 

47.60 

None 

16. on 

8,071.69 
None 

79.46 
6.30 
None 
274.48 
None 
812. 61 
None 

25.26 
None 

11.32 

None 

None 
132.00 
360.90 

71.54 

None 



Unex- 
pended 
balance as 
of Dec. 31, 
1939. in- 
cluding 
cost of 
goods pur- 
chased and 
still on 
hand 



Estimated 
value of 
contribu- 
tions in 
kind col- 
lected by 
registrant 



inds 



tit to 



Estimated 
value of 
contribu- 
tions in 
kind col- 
lected by 
rt'gl<!trant 
and now 
on hand 



None 

737. 42 

6.00 
398. 39 

136. 72 

None 

494.80 

None 
None 

517.34 

154. 32 

I, 900. 36 

I, 695. 45 
■ra. 62 
589. 25 

785. 15 

629.46 
6,011.19 
1, 660. 31 

None 
60,034.16 
2, 215. 86 

934. 36 
None 

212. 33 

1, 369. 95 

97.35 

2,114.61 

None 

1,412.47 

143.70 



None 

None 

None 
None 

None 

None 

$134.00 

None 
None 

None 

None 

None 

None 

.'J37. 05 
None 

None 

None 

500.00 
None 
None 
None 
None 
None 
None 
None 

800.00 

None 
None 
None 

500.00 

None 



None 

None 

None 
None 

None 

None 

None 

None 
None 

None 

None 

None 

None 
170.80 
None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

4,000.00 
None 
None 

300.00 

None 



/ This registration was revoked on Dec. 13, 1939, at request of registrant. 

• The registration of this organization was revoljed on Dec. 4, 1939, at request of registrant. 

» This registration was revoked on Dec. 31, 1939. at request of registrant. 

' The registration of this organization was revoked on Dec. 7, 1939, at request of registrant. 



208258 — 40 2 



136 



DEPARTMENT OF STATE BULLETIN 
Contributions fok Relief in Belligerent Countries — Continued 



Polish Literary Guild of New Britain, Conn., New Britain, Conn., Sept. 

21, 1939. Poland w"^- -^-- 

Polish Medical Relief Fund of Mount Desert Island, Maine, Bar Harbor, 

Maine, Sept. 25, 1939.>' Poland - .--:■;,- -,--. .••- 

The Polish National Alliance of Brooklyn, United States of America, 

Brooklyn, N. Y., Sept. 19, 1939. Poland.. ..--. 

Polish National Alliance of the United States of North America, Chicago, 

111., Sept. 27, 1939. Poland ---- ■ 

Polish National Catholic of the Holy Saviour Church, Union City, Conn., 

Sept. IS, 1939. Poland ;-,--.:;- 

Polish National Council of Montgomery County, Amsterdam, N. Y., 

Oct. 12, 1939. Poland. - 

Polish National Council of New York, New York, N. Y., Sept. 14, 1939. 

Poland 

The Polish Naturalization Independent Club, Worcester, Mass., Sept. 

20, 1939. Poland -.--vvVr-'A-v 

Polish Relief Association, Town of North Hempstead, Mmeola, N. Y., Oct. 

19, 1939.' Poland -,•--,--- 

The Polish Relief Committee, Baltimore, Md., Oct. 20, 1939. Poland... 

Polish Relief Committee, Flint, Mich., Sept. 18, 1939. Poland 

Polish Relief Committee, New Bedford, Mass., Oct. 31, 1939. Poland... 

Polish Relief Committee, Rochester, N. Y., Nov. 8, 1939. Poland 

Polish Relief Committee, Taunton, Mass., Dec. 13, 1939. Poland 

Polish Relief Committee of Boston, Boston, Mass., Sept. 14, 1939. Poland. 
Polish Relief Committee of Brockton, Mass., Brockton, Mass., Sept. 26, 

1939. Poland 

Polish Relief Committee of Cambridge, Mass., Cambridge, Mass., Sept. 

16, 1939. Poland 

Polish Relief Committee of Delaware, Wilmington, Del., Sept. 22, 1939. 

Poland 

Polish Relief Fund of Fall River, Mass., Fall River, Mass., Nov. 8, 1939. 

Poland .-- - 

Polish Relief Committee of Gardner, Mass., Gardner, Mass., Sept. 26, 1939. 

Poland --■ 

Polish Relief Committee of Holyoke, Mass., Holyoke, Mass., Nov. 4, 1939. 

Poland 

Polish Relief Committee of Jackson, Mich., Jackson, Mich., Nov. 9, 1939. 

Poland 

Polish Relief Committee of Nassau County, N. Y., Hempstead, N. Y., 

Oct. 28, 1939. Poland 

Polish Relief Committee of Philadelphia and vicinity, Philadelphia, Pa., 

Sept. 12, 1939. Poland -- 

Polish Relief Committee of the Polish National Home Association, Lowell, 

Mass., Nov. 27, 1939. Poland... 

Polish Relief Fund, Detroit, Mich., Sept. 11, 1939. Poland 

Polish Relief Fund, Jersey City, N. J., Sept. 12, 1939. Poland 

Polish ReHef Fund, Jewett City, Conn., Oct. 3, 1939. Poland.. 

Polish Relief Fund, Middletown, Conn., Sept. 23, 1939. Poland.. 

Polish Relief Fund, Niagara Falls, N. Y., Oct. 26, 1939. Poland 

Polish Relief Fund Committee, Los Angeles, Calif., Dec. 13, 1939. Poland 
Polish Relief Fund Committee of Milwaukee, Milwaukee, Wis., Sept. 26, 

1939. Poland 

Polish Relief Fund Committee of Passaic and Bergen Counties, Passaic, 

N. J., Sept. 22, 1939. Poland 

Polish Relief Fund of Irvington, N. J., Irvington, N. J., Sept. 26, 1939. 

Poland - 

Polish Relief of Carteret, N. J., Carteret, N. J., Oct. 11. 1939. Poland... 
Polish Relief Fund of Meriden, Meriden, Conn., Oct. 12, 1939. Poland.. 
Polish Relief Fund of Palmer, Mass., Three Rivers, Mass., Oct. 20, 1939. 

Poland --- 

Polish Relief Fund of Syracuse, N. Y., and vicinity, Syracuse, N. Y., 

Oct. 31, 1939. Poland 

Polish Union of the United States of North America, Wilkes-Barre, Pa., 

Sept. 8, 1939. Poland 

Poli.sh United Societies of Holy Trinity Parish, Lowell, Mass., Sept. 20, 

1939. Poland 

Polish War Sufferers Relief Committee (Fourth Ward), Toledo, Ohio, 

Sept. 21, 1939. Poland - 

Polish Welfare Association, Hyde Park, Ma.ss., Sept. 16, 1939. Poland.. 
Polish Welfare Association of the Archdiocese of Chicago, Chicago, 111., 

Oct. 13, 1939.' Poland.. 

Polish Welfare Council, Schenectady, N. Y., Sept. 22, 1939. Poland 



$1, 687. 01 
3, 413. 16 
4, 100. 90 
202, 442. 57 
407. 77 
1, 925. 76 
19, 007. 72 
1, 426. 39 

620.40 
2, 643. 65 
2, 217. 26 
4, 843. 88 
2, 520. 06 

None 



803. 44 

2, 943. 46 

627. 49 

1, 686. 47 
2, 383. 84 

896. 19 
680. 75 

20, 713. 74 

389. 48 
76, 996. 36 

21, 963. 42 
345, 80 

2, 258. 10 

None 
151. 94 

7, 528. 69 

7, 058. 67 

1, 788. 24 
704. 16 
802. 37 

625. 34 

2, 049. 48 

619. 76 

3, 659. 04 



Expendi- 
tures for 
relief in 

countries 
named 



None 
$3, 126. 80 
1, 000. 00 
181, 066. 00 
407.77 
1, 000. 00 
14, 196. 61 
I, 300. 00 

None 

None 
1, 300. 00 

None 
1, 000. 00 

None 
2,600.00 

200.00 

None 

2, 700. CO 

600.00 

500.00 

77.40 

300.00 

650. 00 

10, 000. 00 

None 

46, 462. 03 

7, 544. 25 

285. 00 

1, 000. 00 

None 

None 

5,000.00 

1,836.60 

1, 232. 60 
None 
None 

None 

None 

None 

1, 652. 03 



Funds 
spent for 
adminis- 
tration, 
publicity, 
affairs. 



etc. 



$12.00 
278. 71 
None 
None 
None 
77.16 
313.21 
7.16 

38.75 
256. 15 
414.84 
363.31 

17.27 
None 



66.21 
None 

484.86 
61.84 
62.64 
28.00 

261. 12 

None 
214. 20 
660.23 
None 
18.20 
None 
10.37 

29.33 

167. 05 

20.00 
None 
17.60 

37.50 

20.00 

None 

149. 40 



Unex- 
pended 
balance as 
of Dec. 31, 
1939, in- 
cluding 
cost of 
goods pur- 
chased and 
still on 
hand 



$1, 675. 01 

7.64 

3, 100. 90 

21, 377. 67 

None 

848. 60 

4,499.00 

119. 24 

481. 66 
2, 388. 40 

502. 42 
4, 480. 67 

1, 502. 78 

None 
1,083.11 

428.36 

793. 96 

177. 24 

27.49 

700.62 

2, 244. 60 
542.66 

2.76 

10, 462. 62 

389.48 

30,319.12 

13, 868. 94 

60.80 

1, 239. 90 

None 
141. 67 

2, 499. 26 

6,066.02 

636.64 
704. 16 
784. 87 

687.84 
2, 029. 48 

619. 76 
1,857,61 



Estimated 
value of 
contribu- 
tions in 
kind col- 
lected by 
registrant 
and sent to 
oun tries 
named 



None 

None 

None 

None 

None 

$5, 000. 00 

100, 486. 60 

None 

735.00 
None 
None 
None 
None 
None 
None 

None 

None 

None 

None 

None 

176.00 

None 

None 

None 

None 
6,600.00 
None 
None 
None 
None 
None 

None 

1, 625. 00 

600.00 
45.00 
None 

None 

None 

None 

None 



' The registration of this organization was revoked on Nov. 28, 1939, at request of registrant. 
» The registration of this organization was revoked on Jan. 17, 1940, at request of registrant. 
' The registration of this organization was revoked on Dec. 18, 1939, at request of registrant. 



FEBRUAET 3, 1940 



137 



Contributions for Relief in Belligerent Countries — Continued 



Name of organization, city, date of registration, and country or countries 
to which contributions are being sent 



Polish White Cross Club of West Utica, Utioa, N. Y., Oct. 20, 1939. 

Poland - _.. 

Polish Women's Fund to Fatherland, Lawrence, Mass., Sept. 23, 1939. 

Poland - 

Polish Women's Relief Committee, New Yorlc, N. Y., Nov. 24, 1939. 

France, Poland, and flerraany 

Polski Komitet Ratunkowy (Polish Relief Fund), Binghamton, N. Y., 

Sept. 25, 1939. Poland ._ 

Polsko Narodowy Komitet w Ameryce, Scranton, Pa., Sept. 8, 1939. 

Poland.- -.- 

Pulaski Civic League of Middlesex County, N. J., South River, N. J., 

Sept. 30, 1939. Poland 

Pulaski League of Queens County, Inc., Jamaica, N. Y., Oct. 21, 1939. 

Poland - 

RSfugiSs D'.^lsace Lorraine en Dordogne, San Francisco, Calif., Nov. 9, 

1939. France... 

Rekord Printing and Publishing Co., Shamokin, Pa., Sept. 14, 1939. 

Poland 

Relief Agency tor Polish War Sufferers, Willimantic, Conn., Sept. 29, 1939. 

Poland 

Relief Committee of United Polish Societies, Chicopee, Mass., Oct. 21, 1939. 

Poland 

Relief Fund for Suflerers in Poland Committee, Kenosha, Wis., Sept. 25, 

1939. Poland 

ReliefSocietyforJews in Lublin, r.,os Angeles, Calif., Dec. 13, 1939. Poland, 
Russian RefUKee Children's Welfare Society, Inc., New York, N. Y., Sept. 

29,1939. Germany, Franco, and Poland 

The Sacred Heart Roman Catholic Church, Little Falls, N. Y., Little 

Falls, N. Y., Nov. 2, 1939. Poland 

Saint Adalbert's Polish Relief Association, 'Thompsonville, Conn., Nov. 

2,1939, Poland-- 

St. Michael's Roman Catholic Parish, Derby, Conn., Oct. 20, 1939. 

Poland--- 

St. Stephens Polish Relief Fund of Perth Amboy, N. J., Perth Amboy, 

N. J., Sept. 27, 1939. Poland . 

Save the Children Federation, Inc. (formerly International Save the Chil- 
dren Fund of America, Inc.), New York, N. Y., Sept. 8, 1939. England 

and Poland 

Schuylkill and Carbon Counties Relief Committee for Poland, Frackville, 

Pa., Sept. 15, 1939. Poland 

Secours Franco-AmSricain— War Relief, Pittsburgh, Pa., Nov. 20, 1939. 

France 

Share A Smoke Club, Inc., Ithaca, N. Y., Nov. 14, 1939. England and 

France ..- 

Soci(5t6 Fran?aise de St. Louis, Inc., St. Louis, Mo., Nov. 15, 1939. France 
Society of the Devotees of Jerusalem, Inc., New York, N. Y., Dec. 18. 1939. 

Palestine 

Southbridge .\llied Committee for Relief in Poland, Southbridge, Mass., 

Nov. 9. 1939. P.iland -. 

Spanish Refugee Relief Campaign, New York, N. Y., Sept. 20, 1939. 

France 

Sprlngfleld and Vicinity Polish Relief Fund Committee, Springfield, 

Mass., Sept. 23, 1939. Poland 

Toledo Committee for Relief of War Victims, Toledo, Ohio, Sept. 19, 

1939. Poland 

Tolstoy Foundation for Russian Welfare and Culture, New York, N. Y., 

Oct. 17, 1939. France and Poland - 

Mrs. Walter R. Tuckerman, Bethesda, Md., Nov. 24, 1939. Great Brit- 
ain 

Edmund Tyszka, Hamtramck, Mich., Sept. 19, 1939. Poland 

United American Polish Organizations, South River, N. J., South River, 

N. J., Oct. 20, 1939. Poland 

United Charity Institutions of Jerusalem, New York, N. Y., Oct. 13, 1939. 

Palestine.. , . .. 

United Committee for French Relief, New York, N. Y., Oct. 26, 1939. 

France..- 

United Opoler Relief of New York, New York, N. Y., Dec. 9, 1939. Po- 
land 

United Polish Central Council of Connecticut, Bridgeport, Conn., Oct. 16, 

1939. Poland -. ... 

United Polish Committees in Racine, Wis., Racine, Wis., Nov. 2, 1939. 

Poland 

United Polish Organizations of Salem, Mass., Salem, Mass., Oct. 20, 1939. 

Poland . - 

United Polish Roman Catholic Parish Societies of Qreenpoint, Brooklyn, 

N. Y., Brooklyn, N. Y., Oct. 13, 1939. Poland 



$2, 410. 83 

2, 966. 99 
1,418.39 
1, 359. 78 

12, 221. 70 
367. 75 

3, 768. 35 
1, 435. 00 

473. 82 

1, 826. 41 

744. 44 



170. 16 

587.70 

220.00 

2, 356. 50 

139.00 

2, 056. 40 

146. 60 

1.00 
None 

2, 107. 91 
503. 48 

20, 307. 42 
572. 15 

3, 257. 12 

11,738.63 

255. 00 
2, 296. 64 

1,913.63 

10, 106. 61 

6. 487. 76 

None 

1,462.77 

996. 20 

1, 279. 30 

1. 387. 56 



Expendi- 
tures for 

relief in 
countries 

named 



$222. 42 

1.500.00 

128. 72 

10.20 

9.500.00 

None 

3, 000. 00 

1, 433. 46 

441.45 

None 

500.00 



1, 679. 00 
150.00 
None 
None 
None 

93.00 

1, 455. 00 

None 

None 
None 

500.00 

None 

3, 282. 41 

None 

2, 800. 00 

2, 198. 70 

202. 85 

2, 296. 64 

I, 200. 00 
6, 234. 40 
400.00 
None 
10.00 
500.00 
1.000.00 

1. 300. no 



Funds 
spent for 
adminis- 
tration, 
publicity, 

affairs, 

campaigns, 

etc. 



$80.82 
331.31 
52.80 
46.75 
102. 02 
85.00 
139. 75 
None 
None 
None 
None 



751. 43 
1.00 
None 
None 
None 

None 

None 

1L70 

1.00 
None 

416.53 

20.91 

14, 358. 18 

4.25 

61.00 

762. 57 

None 
None 

58.05 

4, 900. 55 

194. 70 

None 

None 

97.75 

42.95 

10.00 



Unex- 
pended 
balance as 
of Dec 31. 
1939, in- 
cluding 
cost of 
goods pur- 
chased and 
still on 
hand 



Estimated 
value of 
contribu- 
tions in 
kind col- 
lected by 
registrant 
and sent to 
countries 
named 



Estimated 
value of 
contribu- 
tions in 
kind col- 
lected by 
registrant 
and now 
on hand 



$2, 107. 59 
1,135.68 
1, 236. 87 

1. 302. 83 

2, 619. 68 
282.75 
628.00 

1.54 

32.37 

1,826.41 

241.44 

351.05 
r22. 1 

2, 462. 49 
26.16 
587. 70 
220.00 

2. 356. 50 

46.00 
601.40 
134.90 

None 

None 

1, 221. 38 
482. 67 

2, 666, 83 
667. 90 
406. 12 

8, 777. 26 

52,15 
None 

655. 58 

None 

5. 873. 06 

None 

1, 442. 77 

398. 45 

236.35 

77.66 



$800.00 

None 

500.00 

300.00 

None 

None 

None 

None 

500.00 

None 

None 

None 
None 

None 

None 

None 

None 

None 

None 

None 

None 

None 
None 

None 

None 

10, 036. 00 

None 

None 

None 

None 
No 

None 

None 

100.00 

None 

40.00 

None 

None 

None 



$300.00 
600.00 
200.00 
None 
None 
None 
None 
None 
None 



896. 30 
None 
None 
None 
None 

None 



None 
3,000.00 
None 
None 
None 



None 
None 
400.00 
None 
None 
None 
None 
None 



13S 



DEPARTMENT OP STATE BULLETIN 
Contributions for Relief in Belligerent Countries — Continued 



Name of orgaQization, city, date of registration, and country or countries 
to wliich contributions are being sent 



Expendi- 
tures for 

relief in 
countries 

named 



Funds 
spent for 
adminis- 
tration, 
publicity, 

affairs. 

campaigns, 

etc. 



Unex- 
pended 
balance as 
of Dec. 31, 
1939, in- 
cluding 
cost of 
goods pur- 
chased and 
still on 
band 



Estimated 
value of 
contribu- 
tions in 
kind col- 
lected by 
registrant 

and sent to 
countries 
named 



Estimated 
value of 
contribu- 
tions in 
kind col- 
lected by 
registrant 
and now 
on band 



United Polish Societies of Bristol, Conn., Bristol, Conn., Sept. 29, 1939. 
Poland 

The United Polish Societies of Bronx County, Bronx, New York, N. Y., 

Nov. 21, 1939." Poland 

United Polish Societies of Hartford, Conn., Hartford, Conn., Sept. 27, 

1939. Poland..-- -. 

United Polish Societies of Immaculate Conception Church, Southington, 

Conn., Oct. 13, 1939. Poland 

United Polish Societies of Los Angeles, Los Angeles, Calif., Oct. 21, 1939. 

Poland - -. 

United Polish Societies of Manchester, Manchester, Conn., Nov. 9, 1939. 

Poland - - 

United Reading Appeal for Polish War Sufferers, Reading, Pa., Sept. 22, 

1939. Poland 

Urgent Relief tor France, Washington, D. C, Dec. 26, 1939. France 

Mrs. Paul Verdier Fund, San Francisco, Calif., Oct. 11, 1939. France... 

Ware Polish Relief Fund, Ware, Mass., Nov. 4, 1939. Poland 

Women's Allied War Relief Association of St. Louis, Clayton, Mo., Dec. 

18, 1939. Great Britain and France 

Registrants whose registrations were revoked prior to Dec. 1, 1939, and 

who had no balance on hand as of that date 

Total 



$526. 37 

None 

1, 385. 45 

382. 95 

1, 189. 31 



4, 862. 63 
100.00 

3, 953. 72 
798. 95 

164.40 

19, 773. 96 



None 
None 
None 
$250. 00 
1, 189. 31 
65.00 

3, 289. 53 
None 

3, 889. 80 
None 



None 
None 
$109. 00 
None 
None 



121.30 
None 
40.45 



None 
52.46 



$626. 37 

None 

1, 276. 45 

132. 95 

None 

14.00 

1,451.80 
100.00 
23.47 
762. 15 

65.23 

None 



None 

None 

None 

None 

None 

None 

None 

None 

$1, 420. 00 

None 

None 

None 



$100.00 

None 

None 

None 

None j 

None ( 

None 
None 
200.00 
400.00 

None t 

None I 



"» The registration of this organization was revoked on Dec. 13, 1939, at request of registrant. 



Departmental Service 



APPOINTMENT OF BRECKINRIDGE LONG AS AN ASSISTANT 
SECRETARY OF STATE 



The Honorable Breckinridge Long took the 
oath of office as an Assistant Secretary of State 
on January 23, 1940. 

The following is Mr. Long's biography: 

Born in St. Louis, Mo., May 16, 1881 ; Prince- 
ton, A. B. 1903, A. M. 1909; St. Louis Law 
School (Washington University) 1904:-6; 
member of the bar of Missouri; law practice 
1907-17, 1921-33; secretary, St. Louis Bar 
Association, 1913-15; Third Assistant Secre- 



tary of State 1917-20; Special Assistant to the 
Attorney General of the United States 1933; 
author; appointed Ambassador Extraordinary 
and Plenipotentiary to Italy April 24, 1933; 
resigned July 31, 1936; United States Commis- 
sioner, International Commission of Inquiry, 
United States and Italy, 1939- ; appointed 
Special Assistant in charge of the Special 
Division in the Department of State September 
6, 1939; married. 



General 



ADDRESS BY ASSISTANT SECRETARY BERLE 



[Released to the press January 31] 

Mr. Chairman, President Seymour, Gentle- 
men: 

I am glad to salute you this evening on the 
occasion of the fifth anniversary of the Yale 
Political Union. I do so with unconcealed 
envy. Young men, when they meet, can discuss 
the problems of the time with real freedom; 
and perhaps they alone can do so. To you all 
things are possible; all questions have answers; 
all wrongs can be righted ; all hopes can be ful- 
filled. 

Let me ask you to try to exchange ages for a 
moment and to put yourselves for a moment in 
the position of my generation. It is not yet 
gray-headed. Yet our college life was colored 
by the World War and with the economic up- 
set which came with it in 1914. Our university 
work was interrupted by service for 2 years in 
the American Army; and in the years after 
1919, we lived through demobilization and re- 
adjustments which changed the course of life 
for all of us. There followed a decade of ma- 
jterialist debauch which threatened to twist be- 
yond recognition the ideals by which the United 
States had lived. In 1929 there began years of 
an economic crisis more severe than any known 
in modern times. These were also years of ten- 
sion at home and especially abroad. Fierce at- 
tempts were made to tear old loyalties apart. 
Definite and powerful campaigns were waged 
to break down or undennine the moral concepts 
by which men had lived. In some areas force 
politics became the accepted method of conduct- 
ing international affairs. These currents have 
now culminated in a new war. More than half 
our lives have already gone, without even a far- 
off vision of peace and economic justice. You 
discuss 25 years later those same problems 
which we discussed in my university days. 



'Delivered at the Tale Political Union, Yale Uni- 
versity, New Haven, Conn., January 31, lt)40. 



Let me try tonight to draw, without decora- 
tion, a picture of one set of problems which 
you will presently encounter in practical life, 
as you have already encountered them in dis- 
cussion. 

Mucii of the old world is today engaged in 
war; and this war will end. Whether it ends 
in a few months or in a few years makes little 
difference, as I see it, save in the intensity of 
(lie situation with which you will have to deal. 

When orders are finally given to ground 
arms on all fronts, you are likely to find that 
practically every avenue of international trade 
is blocked. Old and normal traffic on which 
we relied to keep business going and national 
life on an even keel will have dried up. Great 
areas in Europe will be in grave physical dis- 
tress. In some places many of the accepted 
comforts of modern life will have ceased to be 
available; but in other areas, populations will 
be literally starving, naked, and perhaps home- 
less. 

The mere dropping of ai-ms and ending of 
blockades will not put a prompt end to this 
situation. 

Millions of men will be demobilized and will 
return to civilian life to find that it is not 
easy for them to be reabsorbed. At least one- 
third of the life of Western Europe, which is 
now devoted to making war and war supplies, 
will find itself without immediate purpose. 
The task of its readjustment into peaceful life 
and production of peacetime goods will be 
staggering. Dislocation will be at once com- 
mercial, financial, mechanical, and spiritual. 

You will face, in a word, a western world 
which has got into as much of a mess as a 
world can conveniently do. 

It is very nearly a foregone conclusion that 
there will be, at that time, a great movement 
of social unrest. Practically every population 
has been led, during the past 25 years, into a 

139 



140 



DEPAETMENT OF STATE BXJLIiETIN 



blank impasse. There is scarcely a single great 
nation whose people have lived as they wished 
to live, who have seen any real hope of attain- 
ing what they most desire. The struggle to 
escape, to rebuild, will be almost universal. 

There will be no clear guideposts to recon- 
struction. The newer forms of government 
which claimed to be revolutionary will have 
failed quite as signally as they insist the older 
forms of government did which they sought to 
overthrow. You will find great masses of men, 
without illusions, seeking and struggling for 
an idea of life which gives them hope; for 
an organization of peace which lets them work 
toward that end; and for a freedom of life 
which permits them to walk in the land of the 
living without fear. 

And what of the United States? In that 
hour we shall find ourselves one of the last 
great links with an older, slower, but freer 
development of aifairs. This will have both 
its strength and its weakness. 

Its strength will be that we shall, I think, 
offer the world a tremendous picture of the pos- 
sibilities of peaceful life. Kaces and groups 
which lived in perpetual hatred in Eui'ope have 
sent millions of their sons to the United States 
where they live side by side in peace and friend- 
ship. In the Western Hemisphere, in the main, 
we have been able to keep peace without stand- 
ing armies, fortified frontiers, perpetual diplo- 
matic juggles of the balance of power, or in- 
sistence on revolution as the only solution of 
social problems. 

It will perhaps be remembered that during 
the tragic years leading up to the final act, an 
American President, Mr. Roosevelt, used every 
means and struggled continuously to keep the 
lines of peace open to the last moment, and 
when that failed, they perpetually sought 
means of reestablishing peace after war had 
broken out. It will be remembered that when 
much of the world was engaged in choking 
trade channels, an American Secretary of State, 
Mr. Hull, worked tirelessly to keep them open. 
It will be remembered that as men were losing 
their bii-thright elsewhere, this Government 
consistently raised its voice in favor of free- 



dom of religion, freedom of information, free- 
dom from commercial restrictions, and free- 
dom from the burdens of armament and the 
fear of recurrent war. 

The weakness of our situation will be that 
many of our economic institutions will no 
longer mesh with the institutions overseas. 
Our financial system will still be, compara- 
tively speaking, along classic lines, at a time 
when almost everywhere else in the world cur- 
rency and credit will be on a wholly different 
basis. We shall still be feeling for that nec- 
essary understanding between business and gov- 
ernment. We shall still find difficulty in real- 
izing that what we call business and what we 
call government must work together to create a 
situation in which substantially everyone has 
an opjDortunity to work, to secure the necessities 
for a decent life, and to gain recognition 
roughly corresponding to his abilities. The 
millions of men and an industrial machinery 
which were formerly used both in Europe and 
here to provide war materials will be thrown 
out of that employment ; and both because of 
this and because of competition from overseas, 
our problems will be very great. 

You will thus face, in your own experience, 
and in the not too distant future, the stagger- 
ing problems of peace and reorganization. 

It will then appear, I think, that the present 
war has a double aspect. Undeniably this is a 
struggle between certain groups of nations. 
Beneath that, there is a desperate search 
throughout Europe to find the basis for a new 
way of life. This is natural, when you remem- 
ber that for more than a generation no people 
in Europe has been able to see a clear road 
ahead upon which it could start its children in 
reasonable confidence. European civilization, 
and indeed in some measure our own, is like 
Pirandello's character in search of an author. 
The confusion you see is the quest of many mil- 
lions of men for a lost ideal of a world order 
which they can understand. 

Now if we are to navigate safely the period 
which must inevitably follow this war, we shall 
need clear heads and sound instincts. 



FEBRUAKY 3, 1940 



141 



I do not believe that new appeals to hatred 
stand the slightest chance of offering a solution. 
There is disillusionment even with hatred. In 
the World War, we were taught to hate autoc- 
racy and militarism; and the hatred pi'oved 
sterile. Then, in the name of social reform, we 
were asked to indulge class hatred. Some lib- 
erals were stupid enough to accept this, only to 
find at the end that a dictatorship of the prole- 
tariat based on a class war is much like any 
other dictatorship, and that class hatred pro- 
duces exactly the same results as race or any 
other kind of hatred. I am beginning to be- 
lieve that underneath the whole tangle of forces 
which has produced the present disaster, there 
is begimiing to be a complete rejection of the 
whole thesis of hatred. The negatives are 
almost exliausted; the western world is once 
more looking for a positive. 

Now this, you will be saying, is an odd way 
of going at things. Yet, if you look at the 
practical problems that will be presented im- 
mediately upon the cessation of hostilities I 
think you will see that it may not be wholly 
inappropriate. 

For, at that time, we shall be faced iname- 
diately with the task of dealing with great 
distress overseas, and we shall be fortunate if 
we do not have some at home. We might, of 
course, take the hard-boiled attitude and try to 
save ourselves from trouble, from sacrifice, 
even from thinking about it. Yet we know 
perfectly well that we shall do no such thing. 
We never have. If we did try to appear in- 
different, we should merely convince a consid- 
erable part of the modern world that we were 
lan obstacle to be attacked and conquered rather 
than a Nation which dealt as a neighbor and 
friend. And, I think that with clear vision, 
land using the highest guide of our instincts, 
|we shall say that as a matter of course we must 
contribute to the reconstruction of an ordered 
Iworld as rapidly as possible. We have re- 
jected any intent to do so by war. But we 
have not declined to assert peace, if peace can 
be soundly based. 

What does this mean, in practice ? It means 
that we shall be sending goods which we pro- 
duce in abundance to places where they are 



needed. We may, and no doubt will, hope that 
we shall be paid for them sometime; but we 
will know that, paid or not, human suffering 
must be relieved. We shall find that the trade 
by which the world lives has to be reestab- 
lished; and if there is no woi'king capital to 
start it moving again, we shall find ourselves 
helping to set up a considerable part of the 
world in business again. We may do this be- 
cause we should hope — and I think rightly — 
that the result will contribute to our own eco- 
nomic health. But we will know that whether 
it is immediately advantageous or not, the 
process still is necessary to make an equilibrium 
in which civilized men can live. We shall of 
course have the mixture of motives which is 
usual in every human action; but we shall 
really be engaged in loving our neighbor, 
though we may not state the process in those 
terms. 

It is not beyond bounds of possibility that 
whole peoples may suddenly decide to think in 
those terms, instead of in the narrower terms 
of nationalisms gone mad, of passion run riot, 
or of enmities built up and exploited to the last 
degree. You are, thus, quite likely to find 
American and foreign public-health units 
working side by side, and not trying to assess 
the race, wealth, or origin of the people whom 
they endeavor to protect from disease. You 
may find international lawyers endeavoring 
to resolve conflicts so as to reopen contact be- 
tween groups and individuals. You may find 
transport pools designed primarily to assure 
that goods are promptly taken to the places 
where they are most needed. You may even 
find banks and bankers pooling their resources 
so that the materials of life are once more 
everywhere available. It may well be that the 
national and international forces will run so 
strongly in these channels that none will care 
or dare to attack or frustrate them. 

In one sense, the inevitable readjustment of 
the ultimate peace will be more troublesome for 
us than for some other nations, because men- 
tally we are less prepared for readjustment. 
The United States has been so fortunate, in 
the main, that instinctively we dislike to. be 
disturbed. Elsewhere, disturbance will have 



142 



DEPARTMENT OF STATE BULLETIN 



been so great that evolution will be accepted as 
probably a change for the better. Here we shall 
need the most flexible of minds, and the greatest 
breadth of imagination, if we are not to become 
tangled and confused as the great drama 
unrolls. 

Specifically, this country will suddenly be 
confronted with a considerable docket of un- 
finished domestic business which calls for atten- 
tion. The defense of our own economic life will 
be no small task, particularly since we shall 
have to defend it, not by throttling someone 
else, but by enabling other people to live. Let 
me draw an illustration from the field of 
technical finance. 

We will start with a country maintaining a 
traditional system of finance. Everywhere else 
in the world economic necessity will have 
driven the great countries to a system of gov- 
ernment-created money and of finance designed 
almost entirely for social ends, either as a mat- 
ter of internal policy (as the Germans have 
done for some time) or because the pressure of 
war has compelled it. So far from being 
normal, we are likely to be the last of the 
mastodons. Is it conceivable that we shall be 
able to get on without some readjustment? 
Either we must contribute to reestablishing a 
classic system abroad; or we shall have to re- 
shape our own finance in order to be able to 
deal with the world at all. 

It seems fantastic today to suggest, for in- 
stance, handing over some of our accumulated 
gold as a free gift to reestablish international 
currency, to let other nations set their houses in 
order, and thereby reestablish trade and normal 
life. But this may not seem nearly so fan- 
tastic a few years hence. It seems impossible 
today to think of using the enormous and yet 
untapped resources of the Federal Keserve sys- 
tem as a means of rebuilding the shattered life 



of another continent; but when the time actu- 
ally comes and we are faced with that con- 
tingency, we may find that the idea looks more 
like an immediate necessity than a fairy tale. 
It may even be — strange though it seem — that 
by dealing with some of these problems we shall 
learn at length that we hold the tools in our 
hand to remedy many of the injustices in our 
own social life. 

Here, I think, groups like your own have 
immense importance. Wlien my generation ex- 
plores the possibilities of social experiment, 
people become afraid. Yours is privileged to 
go as far as your minds and your imaginations 
will take you. It is not usually good politics 
for a man in office to suggest that the banking 
system or the distribution system is not work- 
ing very well and that it ought to be over- 
hauled. But in the universities, the younger 
men — and I am very sure in this university the 
older men, as well — are privileged to throw 
out their lines of imagination and of thought, 
without hindrance; to formulate plans and 
ideas; to reexamine all premises; to rebuild, 
if it be only in imagination, a greater world. 
It may seem like a futile sport of words as you 
debate in the Yale Political Union. Yet you 
will find a few short years from now that busi- 
ness groups or government groups, faced with 
new situations, eagerly study all your thinking, 
in the hope that from that study there will 
develop ideas which are the basis of solving 
immediate problems. 

In your ease, you will not have long to wait. 
We know automatically that warfare, while it 
disintegrates social structures, accelerates social 
force. Today your dreams are dangerous 
things ; they are apt to be fulfilled. If 5 years 
of the Yale Political Union have produced a 
crop of ideas, 10 years will produce a harvest 
of reality. 



■BBBUART 3, 1940 



143 



INSURANCE FOR AMERICA 

Address by Joseph E. Davies ' 



Released to the press February 1] 

^'ellow Americans: 

, Before this distinguished group of insurance 
xecutives, I have been asked to speak on "In- 
urance for America." 

For 3 years I have been in Europe. I trav- 
led much, heard and saw many things. My 
greatest wish has been that every man and 
coman in the United States could have had 
hat experience with me. It would have deep- 
ned their appreciation of the priceless values 
f our system of government. 

The horrors of the present war you read of 
aily. But to read is one thing. To see is 
nother. 

Gas masks for cliildren ; blackouts, with fear 
talking at the bedside lest the home be de- 
troyed by bombs dropped from the air by 
rmed raiders; classrooms in schools converted 
ito hospital wards fitted with cots for the 
leatment of wounded soldiers ; government ra- 
ioning of food; dictatorial censorship and dis- 
Drtion of news ; and the everlasting, haunting 
rief, resignation, and despair in the eyes of 
lothers, wives, sisters, and people on the 
treets. 

i But deeper still are other facts, apparent 
yen before the war broke. 

In your homes tonight you are "listening in" 
rithout fear. There is no danger that mis- 
uided children of your own might betray you 
) secret police for the "crime" of "listening 
1." No American family is threatened with 
le menace of being "liquidated" or dismem- 
ered by the dread horrors of the concentration 
amp. Every American's home is his castle, 
I'hich neither state nor tyrant can violate. No 
lanerican can be shot for the crime of speaking 
lonestly what he thinks in public assemblage or 
la private. No American statesman or journal- 

' Delivered at a meeting of executives and field men 
- the Home Insurance Co., Washington, D. C, and 
roadcast by the Columbia Broadcasting System, Feb- 
ijary 1, 1940. Mr. Davies is Special Assistant to the 
ecretary of State. 



ist can be shot for writing the truth as he sees 
it. No party government can regiment the lives 
of men and coerce them into becoming carniv- 
orous sheep to either destroy their souls or 
make them into cannon fodder. No American 
businessman, great or small, can be compelled 
to become a slave to a totalitarian autarchy and 
to organize his plant production, his inventory, 
his sales policies, regardless of the interest of 
himself or his workers. No American crafts- 
man can be compelled to deaden and kill his 
nervous organism through the driving mecha- 
nism of an inhuman piecework system dictated 
by a tyrannical government. 

Citizens of the United States have not been 
herded aboard ships, destitute and homeless, 
denied the right to live in their own country, 
and sent to sea in vain search of some place 
where they could exist. 

None of our churches can be ransacked, 
desecrated, and destroyed in the name of the 
state. No man of God or layman can be sen- 
tenced to death by guillotine or shooting for 
publicly worshiping God as his conscience 
dictates. 

These are the blessings which we enjoy un- 
der the Bill of Rights under the Constitution 
of the United States in a parliamentary sys- 
tem of representative democracy. 

These things, with the world on fire and with 
false heresies dominating the minds of mil- 
lions of men in the world who would destroy 
this system, are the priceless values which 
America means and which we must insure for 
ourselves, our children, and even for civilization 
itself. 

Dangers Insured Aoainst 

Before the joint session of Congress on Jan- 
uary 4, 1939, the President said : 

"All about us rage undeclared wars — mili- 
tary and economic. All about us grow more 
deadly armaments — military and economic. 



144 



DEPARTMENT OF STATE BULLETIN 



All about us are threats of new aggression — 
military and economic." 

This is more true today than when spoken — 
a year ago. 

Dangers From WirHOtrr 

The Government has been spending enor- 
mous sums to keep America safe. The Presi- 
dent has initiated a program of great naval 
expansion and far-reaching plans for air and 
land defenses that our counti-y may be secure. 
That is one of the costs of insurance. 

Dangers From Within 

It is generally recognized that revolutions, 
dictatorships, autarchies, military madness, and 
even war sprang from the subversive doctrines 
which found their roots in the economic malad- 
justments which bred despair and hopelessness 
among great, masses of men — all because the 
privileged did not do justice to those less for- 
tunate. During the past 7 years the American 
Government has done more in a shorter space 
of time to eliminate domestic injustices and eco- 
nomic maladjustments for the underprivileged 
than any government in history. There, too, is 
insurance money weU spent. 

Dangebs on the Economic Front 

Governments with great military and eco- 
nomic machines have tried to substitute for a 
system of interchange of goods — which has 
been tested and tried through the centuries — a 
Jiew system of barter in international trade, 
where the coin employed was not mutual in- 
terest but the threat of force and coercion. The 
domination of the world by totalitarian armed 
forces animated by such purposes might possi- 
bly require that the future exchange of prod- 
ucts of the earth should be through their own 
clearinghouses, for their profit, and upon their 
terms, with only such minimum advantage to 
the rest of the peoples of the earth as would be 
consistent with the interest or the favor of the 



conquerors. No permanent peace in the future 
can be based upon any such status. 

Trade Agreements and Futuke Peace 

Long before the outbreak of the present war, 
Secretary of State Hull, with singular vision 
and persistent highmindedness, dedicated a 
large part of his life and his future to an effort 
to establish a sane basis for international trade 
between the other nations of the world and our 
country. One of the most practical and best 
guarantees of secure future world peace, he has 
always maintained, could be found in an inter- 
national economic order wherein each natior 
while serving its own interests could still, undei 
natural laws and conditions, develop an inter 
national trade which would provide fair op 
portunity to all nations and assure rising 
standards of living for all peoples under i 
policy of "live and let live." 

In 1934 the Trade Agreements Act wa: 
passed to authorize the negotiation of tradi 
agreements with foreign countries through mu 
tual concessions. It delegated authority to thi 
Department of State to act speedily and effec 
tively and as an agency of a parliamentary sys 
tem of government to meet any quick action ii 
connection with quotas and other internationa 
barriers which totalitarian states are able t( 
apply in international trade relations. Its pur 
poses were to extend foreign markets of thi 
United States; to break down artificial bar 
riers which excluded American products fron 
foreign markets ; to raise the standard of livin; 
of our people; to overcome domestic unem 
ployment; and to increase the purchasin; 
power of our country. In all these purposes i 
has been successful. Scrupulous care has beei 
observed in the administration of the act not U 
impair the interests of either producers, manu 
facturers, or workers. In many, many ui 
stances it has extended existing markets an( 
opened up new markets for American prod 
nets. It has demonstrated that it has been effec 
tive in breaking down those trade barriers- 
quotas, foreign exchange control, coercive bar 



EBRTTABT 3, 1940 



145 



er arrangements — which were throttling down 
ur foreign trade. 

Today we are faced with the choice of con- 
inuing that effort or of abandoning it. To 
bandon it now would be a step backward that 
?ould be deplored by peace- and liberty-lov- 
ag men throughout the world. To abandon it 
lOw would give aid to those foi-ces of intense 
ationalism which inevitably lead to increasing 
egimentation of trade, to totalitarianism, to 
lilitarism, and finally to renewed war. 

The trade-agreements program of the United 
States is the solution for and the answer to ex- 
reme economic nationalism. Under it America 
as taken world leadership in the attempt to 
stablish sane, fair, practical, and historically 
ound methods for carrying on international 
i-orld trade on a basis that will lead to peace 
nd not to war. 

It is not too much to say that there will be 
.0 secure peace in the world unless this princi- 
ile of fair interchange of national products, 
reed from coercion by military force or in- 
ensive nationalism, shall be embodied in the 
)eace after the European war. 

The people of the comitry, regardless of 
)arty, are rallying to its cause. A great Amer- 
can, William Allen White, recently said, "Any 
)arty which opposes this program is making a 
ad mistake." Said he, "No warrior bold with 
purs of gold ever went more bravely into the 
Tay than Cordell Hull is going into this fight." 

This policy is in fact taking out insurance 
'or domestic well-being and future peace. 

Fresh from the horrors of Europe, this is the 
me message I would bring to Americans : 

Be soldiers of the true faith; cleave to your 
American beliefs; fight aggressively every sub- 
•ersive "ism" that attacks our way of life. On 
he streets, in the shops, in the schools, in the 
lome, everlastingly proclaim your faith that 
>arliamentary representative government, un- 
•ler the Bill of Rights and the Constitution of 
he United States, is the best guarantee of 
Teedom and liberty and the dignity of the 
luman spirit that has yet been devised by the 
ninds of men. 



INVESTIGATION OF REPORTED CURE 
FOR LEUKEMIA 

[Released to the press February 3] 

The Department has received the following 
telegram from Emil Sauer, the American Con- 
sul General at Frankfort on the Main, Ger- 
many, which is self-explanatory: 

"Regret that investigation shows there is no 
foundation for the report apparently current 
in the United States that Professor Gansslen 
(not Geslin), Director of the Medical Poly- 
clinic of the University of Frankfort has dis- 
covered a cure for lymphatic leukemia. Pro- 
fessor Gansslen is now in military service at the 
front but his substitute authentically states 
that he knows of no cure having been perfected 
for the disease mentioned." 



International Conferences, 
Commissions, etc. 



INTERNATIONAL FISHERIES COM- 
MISSION, UNITED STATES AND 
CANADA 

[Released to the press February 2] 

The President has appointed Mr. Charles E. 
Jackson, Acting Commissioner, Bureau of 
Fisheries, Department of the Interior, as one 
of the representatives of the United States on 
the International Fisheries Commission estab- 
lished between the United States and Canada, 
to fill the position left vacant by the resignation 
of Mr. Frank T. Bell, former Commissioner, 
Bureau of Fisheries. The other representative 
of the United States is Mr. Edward W. Allen, 
of Seattle, Wash., who was elected Secretary 
of the Commission on December 14, 1939. 

The International Fisheries Commission, 
composed of four members, two appointed by 
the United States and two by Canada, was 



146 

established pursuant to conventions for the 
preservation of the halibut fishery of the 
northern Pacific Ocean and the Bering Sea, be- 
tween the United States and Canada, signed 
on March 2, 1923 (Treaty Series No. 701), May 
9, 1930 (Treaty Series No. 837), and January 
29, 1937 (Treaty Series No. 917). 

The Commission in the execution of its 
duties has divided the waters into areas, has 
limited the catch from each area, has required 
the registration of all halibut vessels and the 
submission of statistical returns with respect to 
the catches and areas of origin, has modified the 
closed season provided for by the conventions, 
and has closed certain nursery areas. 

The Commission maintains a scientific staff 
which is constantly engaged in gathering 
statistics concerning the migrations of the fish 
investigated and in studying the biological 



DEPARTMENT OF STATE BULLETIN 

problems involved with a view to the adoption 
of regulatory measures. 

■f -t- -f 

STUDY OF FISHERY PROBLEMS, 

UNITED STATES AND CANADA 

[Released to the press February 2] 

The Governments of the United States and 
Canada have completed informal arrangements 
for a study by representatives of the two 
countries of fishery problems of common in- 
terest. Under this arrangement, designated 
officials of the two countries met in "Washing- 
ton on February 1 and 2 to begin a study oi 
these problems from the standpoint of conser 
vation and sustained production. The official; 
designated will continue these studies and con 
suit together from time to time for the pur 
pose of coordination. 



Foreign Service of the United States 



PERSONNEL CHANGES 



[Released to the press February 3] 

Changes in ths Foreign Service since Januain/ 
m, 19Jfi: 

William T. Turner, of Emory University, 
Ga., consul at Dairen, Manchuria, has been 
designated second secretary of embassy at 
Tokyo, Japan. 

Joseph F. McGurk, of Paterson, N. J., first 
secretary of embassy at Tokyo, Japan, has 
been designated counselor of embassy at Lima, 
Peru. 

Hartwell Johnson, of Aiken, S. C, third 
secretai-y of embassy at Panama, Panama, has 
been assigned for duty in the Department of 
State. 

Milton C. Rewinkel, of Minneapolis, Minn., 
vice consul at Budapest, Hungary, has been 
designated third secretary of legation at Bu- 
dapest, Hungary, and will serve in dual 
capacity. 



Hungerford B. Howard, of Los Angeles 
Calif., Foreign Service officer, designated as 
sistant trade commissioner at Shanghai, China 
has been assigned as vice consul at Shanghai 
China. 

William Witman, II, of Moylan, Pa., vm 
serving as Foreign Service officer at Beirut 
Syria, has been assigned as vice consul a 
Beirut, Syria. 

J. Winsor Ives, of Oak Park, 111., assigne( 
as Foreign Service officer at Lisbon, Portugal 
has been assigned as consul at Lisbon, Por 
tugal. 

Miss A. Viola Smith, of Los Angeles, Calif. 
Foreign Service officer, designated trade com 
missioner and registrar, China Trade Act, ha 
been assigned as consul at Shanghai, China 
Miss Smith will serve as consul in addition t( 
her designation as registrar, China Trade Act 



EBRUARY 3, 1940 

Edward A. Dow, Jr., of Omaha, Nebr., For- 
ign Service officer, designated assistant trade 
ommissioner at Brussels, Belgium, has been 
ssigned as vice consul at Brussels, Belgium. 

Charles E. Dickerson, Jr., of Oldwick, N. J., 
ow serving as Foreign Service officer at 
loscow, Union of Soviet Socialist Kepublics, 
as been designated first secretary of embassy 
nd assigned as consul at Moscow, Union of 
oviet Socialist Republics. Mr. Dickerson will 
jrve in dual capacity. 

Leigh W. Hunt, of Washington, D. C, For- 
ign Service officer, designated tradei commis- 
ioner at Paris, France, has been designated 
jcond secretary of embassy and assigned as 
onsul at Paris, France. Mr. Hunt will serve 
1 dual capacity. 

Avery F. Peterson, of Boise, Idaho, Foreign 
iervice officer, designated trade commissioner 
t Ottawa, Canada, has been designated second 
ecretary of legation and assigned as consul at 
)ttawa, Canada. Mr. Peterson will serve in 

ual capacity. 

William L. Smyser, of Washington, D. C, 
•"oreign Service officer, designated assistant 
rade commissioner at Berlin, Germany, has 
)een designated third secretary of embassy and 
issigned as vice consul at Berlin, Germany. 
I Paul H. Pearson, of Des Moines, Iowa, For- 
■ign Service officer, designated assistant trade 
:ommissioner at Berlin, Germany, has been des- 
gnated third secretary of embassy and assigned 
IS vice consul at Berlin, Germany. 

Miss Katherine E. O'Connor, of Indiana, 
foreign Service officer, designated assistant 
rade commissioner at Ottawa, Canada, has 
)een designated third secretary of legation and 
issigned as vice consul at Ottawa, Canada. 

Eugene A. Masuret, of New Jersey, Foreign 
Service officer, designated assistant trade com- 
nissioner at Paris, France, has been desig- 
lated third secretary of embassy and assigned 
IS vice consul at Paris, France. 

Lacey C. Zapf, of Lawrenceburg, Tenn., For- 
iign Service officer, designated trade commis- 
sioner at Sydney, Australia, has been assigned 
IS consul at Sydney, Australia. 



147 

Earl C. Squire, of Illinois, Foreign Service 
officer, designated trade commissioner at Lon- 
don, England, has been assigned as consul at 
London, England. 

Don C. Bliss, Jr., of Biloxi, Miss., Foreign 
Service officer, designated trade commissioner 
at Calcutta, India, has been assigned as consul 
at Calcutta, India. 

Basil D. Dahl, of Wisconsin, Foreign Serv- 
ice officer, designated trade commissioner at 
Batavia, Java, Netherlands Indies, has been as- 
signed as consul at Batavia, Java, Netherlands 
Indies. 

R. Horton Henry, of Douglas, Ariz., Foreign 
Service officer, designated trade commissioner 
at Buenos Aires, Argentina, has been assigned 
as consul at Buenos Aires, Argentina. 

Barry T. Benson, of Sherman, Tex., Foreign 
Service officer, designated trade commissioner 
at Calcutta, India, has been assigned as consul 
at Calcutta, India. 

Miss Elizabeth Humes, of Tennessee, For- 
eign Service officer, designated trade commis- 
sioner at Copenhagen, Denmark, has been as- 
signed as consul at Copenhagen, Denmark. 

Jule B. Smith, of Fort Worth, Tex., Foreign 
Service officer, designated trade commissioner 
at Copeidiagen, Denmark, has been assigned as 
consul at Copenhagen, Denmark. 

William P. Wright, of Washington, D. C, 
Foreign Service officer, designated trade com- 
missioner at Johaimesburg, Union of South 
Africa, has been assigned as consul at Jo- 
hannesburg, Union of South Africa. 

Charles E. Brookhart, of Iowa, Foreign 
Service officer, designated trade commissioner 
at London, England, has been assigned as con- 
sul at London, England. 

C. Grant Isaacs, of Tennessee, Foreign Serv- 
ice officer, designated trade commissioner at 
London, England, has been assigned as consul 
at London, England. 

Wilson C. Flake, of Polkton, N. C, Foreign 
Service officer, designated trade commissioner 
at Sydney, Australia, has been assigned as con- 
sul at Sydney, Australia. 

Harold D. Robison, of Utah, Foreign Service 
officer, designated trade commissioner at Singa- 



148 



DEPARTMENT OF STATE BTTTJ.RTIN 



pore, Straits Settlements, has been assigned as 
consul at Singapore, Straits Settlements. 

Joe D. Walstrom, of Mexico, Mo., Foreign 
Service officer, designated assistant trade com- 
missioner at Buenos Aires, Argentina, has been 
assigned as vice consul at Buenos Aires, Argen- 
tina. 

Henry E. Stebbins, of Massachusetts, For- 
eign Service officer, designated assistant trade 
commissioner at London, England, has been 
assigned as vice consul at London, England. 

Fritz A. M. Alfsen, of Brooklyn, N. Y., For- 
eign Service officer, designated assistant trade 
commissioner at Stockliolm, Sweden, has been 
assigned as vice consul at Stockholm, Sweden. 

David M. Clark, of Philadelphia, Pa., For- 
eign Service officer, designated assistant trade 
commissioner at Callao-Lima, Peru, has been 
assigned as vice consul at Callao-Lima, Peru. 

Jack B. Neathery, of Farmersville, Tex., 
Foreign Service officer, designated assistant 
trade commissioner at Caracas, Venezuela, has 
been assigned as vice consul at Caracas, Vene- 
zuela. 

Miss Kathleen Molesworth, of Texas, For- 
eign Service officer, designated assistant trade 
commissioner at Guatemala, Guatemala, has 
been assigned as vice consul at Guatemala, 
Guatemala. 

Thomas S. Campen, of Goldsboro, N. C, 
Foreign Service officer, designated assistant 
trade commissioner at Habana, Cuba, has been 
assigned as vice consul at Habana, Cuba. 

John P. Hoover, of California, Foreign 
Service officer, designated assistant trade com- 
missioner at Habana, Cuba, has been assigned 
as vice consul at Habana, Cuba. 

John L. Bankhead, of Miami Beach, Fla., 
Foreign Service officer, designated assistant 
trade commissioner at Mexico City, Mexico, 
has been assigned as vice consul at Mexico 
City, Mexico. 



John L. Goshie, of New York, N. Y., For- 
eign Service officer, designated assistant trade 
commissioner at Rome, Italy, has been assigned 
as vice consul at Rome, Italy. 

Miss Minedee McLean, of Louisiana, Foreign 
Service officer, designated assistant trade com- 
missioner at Santiago, Chile, has been assigned 
as vice consul at Santiago, Chile. 

Charles O. Thompson, of Alaska, Foreign 
Service officer, designated assistant trade com- 
missioner at Singapore, Straits Settlements, has 
been assigned as vice consul at Singapore, 
Straits Settlements. 

The American Consulate at Dundee, Scot- 
land, will be closed February 29, 1940. 

The American Consulate at St. Pierre- 
Miquelon was closed January 31, 1940. 

The American Consulate at Danzig, Free 
City of Danzig, was closed January 31, 1940, 
and an American Consulate will be established 
at Konigsberg, Germany, in the near future. 



Publications 



Department of State 

Fourth International Conference on Private Air Law, 
Brussels, September 1938: Report of the American 
Delegation to the Secretary of State. Conference 
Series 42. Publication 1401. Iv, 95 pp. 15^ (paper). 

Military Aviation Instructors : Agreement Between 
the United States of America and Argentina. — Signed 
September 12, 1939; effective September 12, 1939. 
Executive Agreement Series No. 161. Publication 1423. 
10 pp. 50. 

Friendship, Commerce, and Navigation : Treaty Be- 
tween the United States of America and Liberia. — 
Signed at Monrovia August 8, 1938 ; proclaimed No- 
vember 30, 1939. Treaty Series No. 956. 13 pp. 50. 



Treaty Information 



Compiled by the Treaty Division 



EXTRADITION 

Supplementary Extradition Treaty With 
Switzerland 

A supplementary extradition treaty between 
the United States and Switzerland, amending 
the extradition treaty of May 14, 1900 (Treaty 
Series No. 354), between the two countries, as 
amended by the supplementary treaty of Jan- 
uary 10, 1935 (Treaty Series No. 889), was 
signed at Bern on January 31, 1940. The 
present supplementary treaty adds several 
crimes to the list of those made extraditable bj' 
previous treaties between the two countries. 

FISHERIES 

Convention for tlie Preservation of the Hali- 
but Fishery of the Northern Pacific Ocean 
and Bering Sea (Treaty Series No. 917) 

The composition of the International Fish- 
eries Commission provided for under the terms 
of the conventions between the United States 
and Canada for the preservation of the halibut 
fishery of the northern Pacific Ocean and the 
Bering Sea, signed March 2, 1923 (Treaty 
Series No. 701), May 9, 1930 (Treaty Series 
No. 837), and January 29, 1937, appears in this 
Bulletin under the heading "International Con- 
ferences, Commissions, etc." 

NAVIGATION 

Agreement for a Uniform System of Mari- 
time Buoyage, and Rules Annexed 
Thereto 

Iran 

According to a circular letter from the 
League of Nations dated December 29, 1939, the 



instrument of adherence by Iran to the 
ment for a Uniform System of Maritime Buoy- 
age, and Rules Annexed Thereto, signed at 
Geneva on May 13, 1936, was deposited with the 
Secretariat on December 15, 1939. 

According to the information of the Depart- 
ment the countries which have ratified or ad- 
hered to the agi-eement are as follows : Belgium, 
Egypt, Finland, Great Britain and Northern 
Ireland, India, Iran, Latvia, and the Union of 
South Africa. 

According to the terms of article 5 of the 
agreement it will enter into force on the nine- 
tieth day following its final acceptance by 10 
governments. 

POSTAL 
Universal Postal Convention of 1939 

United States 

On January 25, 1940, the President approved 
the Universal Postal Convention, the Final 
Protocol, Regulations of Execution, Air Mail 
Provisions, and Final Protocol to the Air Mail 
Provisions, signed at Buenos Aires on May 23, 
1939. According to the provisions of article 82 
of the convention it will enter into force on 
July 1, 1940, and will remain in force in- 
definitely. 

The United States did not sign or become a 
party to the following acts which were also 
signed at Buenos Aires on May 23, 1939: The 
Agreement on Insured Letters and Boxes; the 
Agreement on Parcel Post; the Agreement on 
Money Orders; the Agreement on Postal 
Checks; the Agreement on Collection Orders; 
and the Agreement on Subscriptions to News- 
papers and Periodicals. 

149 



150 



TRANSIT 



Convention With Panama Regarding the 
Construction of a Trans-Isthmian High- 
way (Treaty Series No. 946) 

Article III of the Convention with Panama 
Regarding the Construction of a Trans-Isth- 
mian Highway, signed March 2, 1936, provides 
that "Prior to the undertaking of further con- 
struction on the Trans-Isthmian Highway, each 
Government will appoint an equal number of 
representatives who will constitute a joint 
board with authority to adjust questions of de- 
tail regarding the location, design and con- 
struction of the portions of the Highway fall- 
ing under the jurisdiction of each Government. 



DEPARTMENT OF STATE BTTLLETIN 

Questions of detail on which the board may 
fail to reach an agreement will be referred to 
the two Governments for settlement." 

In fulfillment of this provision the Joint 
Highway Board contemplated in the conven- 
tion has been established by an exchange of 
notes between the two Governments. The 
Board consists of two members, one appointed 
by the President of the United States and one 
appointed by the Government of Panama. The 
American representative is Col. Glen E. Edgei- 
ton, United States Army, Engineer of Mainte- 
nance of the Panama Canal; and the Pana- 
manian representative is Seiior Leopoldc 
Arosemena, Engineer, at present Panamaniar 
Secretary of Government and Justice. 



For sale by the Superintendent of Documents, Washington, D. C. — Price 10 cents ----- SuDscrlptlon piice, ?2.75 a yea 

PDBLISHED WEEKLY WITH THE APPEOVAL OF THE DIRECTOR OF THE BDEEAD OF THE BDDGET 



THE DEPARTMENT OF STATE 

H 
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-O \j JL^JL^ 



^^ 1 1 



\Ut 




FEBRUARY lo, 1940 



Vol. II: No. JJ— Publication 1 435 



Qontents 



Europe: Page 

Diplomatic conversations with neutral countries ... 153 
Relations with the Soviet Union: Letter from the 

Secretary of State to Senator Key Pittman .... 153 

Visit of Sumner Welles to Europe 155 

Contributions for relief in belligerent countries .... 155 
The American Republics: 

Presentation of letters of credence by the Ambassador 

of Panama 156 

International Conferences, Commissions, etc.: 

Fifth Pan American Congress of Architects 158 

Permanent Committee of Habana 159 

Foreign Service of the United States: 

Appointment of an American Minister to Saudi 

Arabia 159 

Foreign Service examination 160 

Treaty Information: 
Education: 

Convention for the Promotion of Inter-American Cul- 
tural Relations (Treaty Series No. 928) 161 

Aviation: 

International Convention for Air Navigation . . . 161 
Telecommunications: 

International Telecommunication Convention 

(Treaty Series No. 867) 162 

Legislation 162 




U.S. SUPERlNTrfVDENTOFDOGiJ. 

12 1940 



Europe 



DIPLOMATIC CONVERSATIONS WITH NEUTRAL COUNTRIES 



[Released to the press February 9] 

It is announced by the Secretary of State 
that in view of existing hostilities in many 
parts of the world, in view of the effect of such 
hostilities on the neutral nations of the world, 
and in view of the evident desire of all neutral 
nations for the eventual restoration of world 
peace on a sound and lasting basis for all na- 
tions, diplomatic conversations of an informal 
character have been commenced with neutral 
governments and will probably be continued 
with all neutral govermnents. 



It should be emphasized that these conver- 
sations involve no plan or plans but are in 
the nature of preliminary inquiries relating to 
a sound international economic system and, at 
the same time, world-wide reduction of arma- 
ments. Matters involving present war condi- 
tions are not a part of these preliminary con- 
versations. These conversations can, of course, 
be extended to belligerent nations insofar as 
they involve these two common problems of 
future peace. 



-♦- -f -f -f -f -f -f 



RELATIONS WITH THE SOVIET UNION 

Letter from the Secretary of State to Senator Key Pittman 



[Keleased to the press B>bruary 8] 

The following letter from the Secretary of 
State to Senator Key Pittman, chairman of 
the Senate Foreign Relations Committee, was 
made public February 8 by the Committee: 

" Jantjary 30, 1940. 
"My Dear Senator Pittman: 

" I have received your letter of January 19, 
1940 ^ inviting such comment as I may feel 
disposed to make on Senate Resolution No. 
209 of January 18, 1940, in which the Presi- 
dent was requested to report to the Senate, if 
not incompatible with the public interest, 
.whether the Government of the Union of Soviet 
Socialist Republics had fulfilled the obligations 
contained in the agreements entered into be- 

' Not printed. 
210000 — 40 



tween that Government and tliis Government on 
November 16, 1933. 

"Although the agreements of November 10, 
1933 between the two Governments were con- 
cluded simultaneously with the establishment 
of diplomatic relations between them, the 
maintenance of diplomatic relations has not 
been made 'wholly contingent', as the wording 
of the Resolution would appear to indicate, on 
the fulfillment by the Soviet Government of 
the obligations set forth in these agreements. 
Whenever this Government has cause to believe 
that another government has failed to live up 
to agi'eements with it, it is accustomed to make 
use of the very channels which exist by virtue 
of diplomatic relations, in order to bring this 
failure to the attention of the other govern- 
ment, to endeavor to effect an adjustment of 

153 



154 



DEPAKTMENT OF STATE BTJT.T.KTIIS' 



resultant divergencies of views, and to attempt 
to prevent similar differences from taking 
place in the future. 

" During the j'ears which have elapsed since 
the establishment of diplomatic relations be- 
tween the United States of America and the 
Union of Soviet Socialist Republics, this Gov- 
ernment on several occasions has had ground to 
believe that the Soviet Government was not 
fully living up to the obligations undertaken 
at the time of the establishment of such rela- 
tions. On such occasions this Government has 
made appropriate representations to the So- 
viet Government. In certain instances these 
representations have yielded constructive 
results; in others, they have disclosed diver- 
gencies in the interpretation of the agreements 
in question. 

"It was the opinion of this Government in 
August 1935 that the Soviet Government had 
violated its obligations not to interfere in the 
internal affairs of the United States when it 
permitted the VII All-World Congress of 
the Communist International to convene in 
Moscow. 

"Accordingly, on August 25, 1935 the Amer- 
ican Ambassador to the Soviet Union addressed 
a note of protest to the Acting People's Com- 
missar for Foreign Affairs. A copy of this 
note is attached hereto as Enclosure 1.^ 

"On August 27, 1935 the Acting People's 
Commissar for Foreign Affairs presented a 
note in reply to the Ambassador in which it 
was denied that the Soviet Government had 
taken upon itself obligations of any kind with 
regard to the Communist International. A 
translation of this note is attached hereto as 
Enclosure 2.^ 

"The Department of State on August 31. 
1935 issued a statement in which it maintained 
that the langiuige of the agreement between 
the two GoA'ernments 'irrefutably covers activi- 



ties of the Communist International'. A copy 
of this statement is attached hereto as En- 
closure 3.* There has been no further exchange 
of views or communications on this subject 
between the two Governments. 

"In comiection with the work of the Ameri- 
can Embassy in Moscow regarding the protec- 
tion of American citizens and interests in the 
Soviet Union, a number of cases have come 
to the attention of this Government involving 
the arrest or detention of American citizens 
by the Soviet authorities. In the opinion of 
this Government, the Soviet Government in 
the handling of some of these cases was not 
living up strictly to its undertakings relative 
to the rights of citizens of the United States 
to legal protection. Following representations 
made by this Government the American citi- 
zens under arrest were eventually released, and 
at the present time, so far as this Government 
is aware, no American citizens are under deten- 
tion in the Soviet Union except a number whom 
the Soviet Government considers to be citizens 
of the Soviet Union rather than of the United 
States. 

"This Government has not had occasion to 
make representations to the Soviet Government 
for violations of any of the other obligations as- 
sumed by the Soviet Government in the agi'ee- 
ments of November 16, 1933. 

"In addition to concluding certain agree- 
ments at the time of the establishment of diplo- 
matic relations, the American and Soviet Gov- 
ernments exchanged views with regard to 
methods of settling all questions of indebtedness 
and claims outstanding between them. This 
exchange permitted the hope for a speedy and 
satisfactory solution of these questions. Sub- 
sequent negotiations, however, terminated 
unsuccessfully. On January 31, 1935 the De- 
partment of State issued to the press a state- 
ment, a copy of which is attached hereto as 
Enclosure 4," pointing out that 'there seems to 



'See Press ReJeases of August 31, 1935 (Vol. XIII, 
No. 30t)), pp. 147-149. 
' See ma., pp. 149-150. 



' See ihid., pp. 150-152. 

"See Press Releases of February 2, 1935 (Vol. XII, 
No. 279), pp. 62-63. 



FEBRUARY 10, 194 

be scarcely any reason to doubt that the nego- 
tiations whicli seemed so promising at the stait 
must now be regarded as having come to an 
end'. 

"There is attached liereto for your conveni- 
ence as Enclosure 5 a publication of the Depart- 
ment of State which sets forth the various 
agreements entered into between the Govern- 



155 

ments of the United States and of the Soviet 
Union on November 16, 1933." " 
"Sincerely' yours, 

CORDELL HULI," 



"This publicatiou. entitled "Establishment of Diplo- 
matic Relations With the Union of Soviet Socialist 
Republics," was ijublished as Eastern European Series 
No. 1, and is now out of print. 



4 -♦■ + -f -♦■ -f -f 



VISIT OF SUMNER WELLES TO EUROPE 



[Released to the press by the White House Febniar.T 9] 

Following is a statement by the President : 

"At the request of the President, the Under 
Secretary of State, Mr. Sumner Welles, will 
proceed shortly to Europe to visit Italy, France, 
Germany, and Great Britain. This visit is 
solely for the purpose of advising the President 
and the Secretary of State as to present condi- 
tions in Eurojje. 



"Mr. Welles will, of course, be authorized to 
make no proposals or commitments in the name 
of the Govermnent of the United States. 

"Furthermore, statements made to him by 
officials of governments will be kept in the 
strictest confidence and will be communicated 
by him solely to the President and the Secre- 
tary of State." 



-f -f -f >- -f -f + 



CONTRIBUTIONS FOR RELIEF IN BELLIGERENT COUNTRIES 



[Released to the press February 6] 

The following list sets forth information 
in regard to persons and organizations which 
have registered with the Secretary of State 
subsequent to January 9, 1940, pursuant to the 
rules and regulations governing the solicitation 
and collection of contributions to be used for 
medical aid and assistance or for the supplying 
of food and clothing to relieve hinnan suffering 
in the countries now at war, promulgated pur- 
suant to the provi.sions of section 8 of the act 
of November 4, 1939, as made effective by the 
President's proclamation of November 4, 1939 
(the names in parentheses represent the coun- 
tries to which contributions are being sent) : 

243. The Grand Duke Vladimir Benevolent Fund As- 
sociation, 562 West One Hundred and Forty-fourth 
Street (Apartment 63), New Yorl<, N. Y. (France) 



244. United German Societies, Inc., 222 American 
Banlv Building, Portland, OreR. (Germany) 

24ri. Emily Morris (Mrs. Lewis Spencer Morris), 116 
East BiKhtieth Street, New York, N. Y. (France) 

246. American Unit for War Relief Association, in 
care of Comtesse de Janze, 8S8 I'ark Avenue, New 
York, N. Y. (France) 

247. Committee for Aid to Children of Mol)ilized Men 
of the XX" Arrondissement of Paris, in care of 
Bernard Douglas, 3.". West Thirty-fourth Street, 
New York, N. Y. (France) 

248. Catholic Medical Mission Board. Inc., 8 West 
Seventeenth Street, New York, N. Y. (India. Aus- 
tralia, (.'anada. New Zealand, and Union of South 
.\frica) 

249. Polish Young .Men's Club, Uanlelson, Conn. (I'<>- 
land) 

250. Fellowship of Reconciliation, 2929 Broadway, 
New York, N. Y. (France, England, and possibly 
Germany) 



156 



DEPARTMENT OF STATE BULLETIN 



251. Sociedades Hispauas Confederadas, 5&-61 Henry 
Street, Brooklyn, N. Y. (France) 

252. Polish American Associations of Middlesex Coun- 
ty, New Jersey, St. Stanislaus Kostka Kectory, 
Sandfield Road, Sayreville, N. J. (Poland) 

253. Polish Aid Fund Committee of St Casimir's 
Roman Catholic Church of the City of Albany, New 
York, 324 Sheridan Avenue, Albany, N. Y. (Poland) 

254. American Emergency Volunteer Ambulance Corps, 
Inc., 60 Wall Tower, New York, N. Y. (Great Britain 
and France) 

255. Polish Roman Catholic Priests Union, Group No. 
3, of New York Archdiocese, Pulaski Highway, Pine 
Island, N. Y. (Poland and France) 

256. Caledonian Club of Idaho, 418 North Fifth Street, 
Boise, Idaho. (Scotland) 

257. Order of Scottish Clans, 150 Causeway Street, 
Boston, Mass. (Scotland) 



258. L' Atelier, Boom 806, DeYoung Building, San Fran- 
cisco, Calif. (France) 

2.">9. Joint Committee of the United Scottish Clans of 
Greater New York and New Jersey, Caledonia Cltib, 
131 West Fifty-third Street, New York, N. Y. (Scot- 
land) 

260. Mrs. Nancy Bartlett Laughliu, 139 East Sixty- 
sixth Street, New York, N. Y. (France) 

261. Relief Coordination Service, 315 Lexington Ave- 
nue, New York, N. Y. (France) 

262. Committee for Relief in Allied Countries, Dum- 
barton Oaks, Georgetown, Washington, D. C. 
(France, Great Britain, and Poland) 

263. Children's Crusade for Children, Empire State 
Building, New York, N. Y. (France, Poland, and 
Germany) 

264. French Relief Association, in care of Lathrop, 
Crane, Reynolds, Sawyer & Mersereau, 911 Walnut 
Street, Kansas City, Mo. (France) 



The American Republics 



PRESENTATION OF LETTERS OF CREDENCE BY THE AMBASSADOR 

OF PANAMA 



[Released to the press February 9] 

Translation of remarks of the newly appointed 
Anibassador of Panama, Senor Dr. Don Jorge 
E. Boyd, upon the occasion of the presentation 
of his letters of credence : 

Mr. President: 

The honor and privilege bestowed by my 
Government upon me, in designating me as its 
diplomatic rein-esentative in the United States, 
did not entail for me the uncertainty of the 
unknown, since it was here in this great coun- 
try that I passed the greater part of my youth 
in school and in tiie university; it was here 
that I began my diplomatic career ; and it was 
with this country that I became allied in un- 
breakable family ties. For these several rea- 
sons I entertain sincere sentiments of admira- 



tion and sympathy for this great Nation, the 
United States. This brief enumeration of the 
dictates of my own sentiments will demonstrate 
to you thei reasons I had for obeying the call 
of my Government. Another very personal 
reason contributed to my decision to accept 
with pleasure the designation of my Govern- 
ment, and that is that the President of my 
countiy, knowing my lofty American senti- 
ments, has desired not only that I should de- 
vote my activities to the international field 
but also that those activities should draw 
inspiration from our common interests. I 
lefer, Mr. President, to the fact that it is 
fitting for both the United States and Panama 
to give a new and promising meaning to the 
intimate relations between our two countries, 
for the purpose of realizing a real fraternal 



T'EBRUAEY 10, 1940 



157 



rapprocTiement and collaboration in the plan 
determined upon by your administration both in 
the General Treaty negotiated between our two 
countries on March 2, 1936, and in the ex- 
jjlanatory notes which were signed and incor- 
l^orated in it as an iutegi'al part of the pact. 

These documents are of exceptional impor- 
tance and significance. They not only inter- 
pret with admirable fidelity "good neighborli- 
ness" — a feeling which is inherent in the noble 
purpose of effacing every trace of misunder- 
standings and misgivings between Panama and 
the United States, initiating a new effort 
toward cordial relations and imderstanding, 
looking toward practical reciprocal advantages 
beyond the limits of mere phraseology — but 
they also present with precision and clarity the 
orientation which must be given to Panama- 
nian-American relations for the purpose of 
establishing between the two countries a last- 
ing friendly relationship which will definitely 
eliminate all possible future misunderstandings. 

This fact must be emphasized because it con- 
stitutes the most eloquent demonstration of 
the new spirit which animates the resolve of 
both nations to understand each other, to be 
good neighbors and true friends, thereby set- 
ting an example of real cooperation to the 
other nations of the American Continent. 

For its part, my Government proposes to 
devote to the fulfillment of these agreements 
its most energetic efforts. Thus, keeping in 
view the fact that by reason of the Canal 
Zone, geography indissolubly unites our two 
nations in one common destiny, that the two 
nations are complementary, impelled toward 
one great ideal — the maintenance and defense 
of that prodigious accomplishment which is 
the Canal — the present administration of Pan- 
ama is preparing to begin the immediate con- 
struction of the small section of the trans- 
Isthmian highway (approximately 23 miles) 
which still remains unfinished and which will 
imite the cities and ports of Panama and Colon 
with Portobello, passing through the Canal 
Zone. This highway will contribute notably 
to the development of cattle raising and other 
industries, which will serve not only to supply 



the troops defending the great Canal but also 
all the Eepublic in case of emergency. Due 
to the strategic importance of this highway 
for the rapid movement of troops and for 
other purposes, I understand that it has the 
approval of the military and naval authorities 
of your country. My Government therefore 
asks and hopes for the efficient cooperation 
of your Government, in oi-der that the con- 
struction of this road may be completed in 
such form as will also give due consideration 
to military necessities, involving heavy pieces 
of artillery and similar traffic. 

It is then most expedient that in the warmth 
of such sincere sentiments of fraternity we 
should make every effort to continue the de- 
velopment of our relations, as symbolized in 
effective solidarity, harmony, and cooperation. 
My mission in your great country signifies 
the desire of the Government and the people 
of Panama to succeed in harmonizing our in- 
terests and in solving our problems with a 
clear and just comprehension which will make 
our friendship steadfast, and I take advantage 
of this happy occasion to assure you, Mr. 
President, of my most sincere and constant 
collaboration toward that purpose. 

It is truly difficult to keep within the strict 
limits of protocol when there is shared between 
two countries a spirit which is more than 
friendly and fraternal, such as that which 
exists between your country and mine. 

As for the desires which I have expressed, I 
have no doubt but that I shall be able to 
count upon your support. 

These, then, are the letters of credence which 
fill me with pride, and it is with similar feel- 
ings that I place in your hands the letters of 
recall of my predecessor and the autograph 
letters which accredit me as representative of 
the President of Panama near your illustrious 
person. 

I beg of you, Mr. President, to accept, in 
the name of the President of Panama and in 
my own name, the most sincere wishes for your 
personal happiness and the continued great- 
ness of the United States of America. 



158 

President RooseoeU's reply to the remarks of 
SeJior Dr. Don Jorge E. Boyd: 

Mk. Ambassador : 

I accept the letter of withdrawal of your 
distinguished brother, Dr. Augusto Boyd, who 
has succeeded to the Presidency of the Re- 
public of Panama following the lamented death 
of the late Dr. Juan Demostenes Arosemena 
and whose residence in this country I recall 
with sincere pleasure. I also accept the letter 
which accredits you as the YAWoy Extraor- 
dinary and Ambassador Plenipotentiary of 
Panama near the Government of the United 
States of America. 

You come here, Excellency, as an old friend 
of this country to which you are attached by 
ties of education, family, and the memories of 
your early years in the diplomatic service of 
your country. It is a personal and official 
pleasure to welcome you again to this capital 
and to assure you that the officers of this Gov- 
ernment will take high satisfaction and gratifi- 
cation in assisting the success of your mission. 

You begin your new duties, Mr. Ambassa- 
dor, under the most favorable auspices, for 
the relations between the United States of 
America and the Republic of Panama have 
never been more cordial and sympathetic than 
they are today. Both your country and mine 
stand side by side in the ranks of inter- Ameri- 
can solidarity and cooperation. We are, by 
reason of our close association on the Isthmus 
of Panama, indeed neighbors — and good neigh- 
bors — in every sense of that word, and the 
newly effective General Treaty between our 
two countries, as you so well point out, has 
sealed and insin-ed a partnership which will 
grow closer and more beneficial to us both as 
(he years pass. 

For more than a quarter of a century, your 
country and mine — as well as all the maritime 
nations of the world — have benefited beyond 
measure from the great enterprise which is the 
Panama Canal. To the continuance of this 
noble cof)perntive effort, I am confident that 
Your E.xcellency brings an inspiration and 
happy spirit of neighborliness whicli cannot 
fail to foster and enhance it. 



DEPARTMENT OF STATE BULLETIN 

In wishing you success in your mission, I 
add my good wishes for the health and wel- 
fare of His Excellency the President of 
Panama and for the happiness and prosperity 
of the Panamanian people. 



International Conferences, 
Commissions, etc. 



FIFTH PAN AMERICAN CONGRESS OF 
ARCHITECTS 

[Released to the press February 8] 

This Government has accepted the invitation 
of the Uruguayan Government to participate 
in the Fifth Pan American Congress of Archi- 
tects, which will be held at Montevideo from 
March 4 to 9, 1940. The President has ap- 
jiroved the designation of the following per- 
sons as official delegates to the Congress : 

The Honorable Edwin C. Wilson, American 
Minister to Uruguay, chairman 

Mr. George Harwell Bond, Candler Building, 
Atlanta, Ga., Member of the American Insti- 
tute of Architects and Secretary of the Insti- 
tute's Georgia Chapter 

Mr. Julian Clarence Levi, 105 West Fortieth 
Street, New York, N. Y., Fellow of the 
American Institute of Architects and Chair- 
man of the Institute's Committee on Foreign 
Relations 

Mr. Frank R. Watson, the Architects' Build- 
ing, Philadelphia, Pa., Fellow of the Ameri- 
can Institute of Architects and Vice 
Chairman of tlie Institute's Committee on 
Foreign Relations. 

This Government has been officially repre- 
sented at all of tlie preceding Congresses in this 
series beginning with the First Pan American 
Congress of Architects held in Montevideo in 
March 1920. I\Ir. Frank R. Watson, who has 
been designated as a delegate to the forthcom- 
ing Congress, served in a similar capacity at 
the Second Congress held in Santiago in Sep- 
tember 1923 and at the Third held in Buenos 
Aires in July 1927. 



FEBBUABY 10, 1940 



159 



Arrangements have been completed for 
United States participation in the Fifth Pan 
American Exposition of Architecture and City 
Planning, which will be held in Montevideo 
concurrently with the Congress. The United 
States exhibit has been arranged through the 
cooperation of the interested departments and 
agencies of the Government and the American 
Institute of Architects. The Institute very 
generously placed at the Department's disposal, 
for inclusion in the United States exhibit, its 
'•National Exhibition of Kepresentative Build- 
ings of the Post War Period," which received 
widespread acclaim during recent showings 
throughout the country under the auspices of 
the American Federation of Arts. 

■f -f -f 
PERMANENT COMMITTEE OF HABANA 

[Released to the press February 7) 

The President has appointed Hessel Edward 
Yntema, Ph. D., S. J. D., professor of law at 
the University of Michigan, as the repre- 
sentative of the United States on the Perma- 
nent Committee of Habana which deals with 



comparative legislation and the unification of 
legislation. 

The Habana Committee is one of three 
permanent committees which were provided 
by a resolution passed by the Sixth Interna- 
tional Conference of American States held at 
Habana in 1928. The work of this committee 
is to make a study of comparative legislation 
and the unification of legislation for submis- 
sion to the governments of the American 
republics. The other permanent committees 
are the Committee of Eio de Janeiro, which 
considers public international law, and the 
Committee of Montevideo, which deals with 
private international law. These permanent 
committees were originally composed of mem- 
bers designated by the government of the 
country in which the committee had its seat. 

The Eighth International Conference of 
American States at Lima in 1938 decided to 
enlarge these committees by adding to each 
committee six membere representing other 
American governments. In accordance with 
this resolution and under a procedure adopted 
by the Pan American Union, this Govern- 
ment was selected to be represented on the 
Habana Committee. 



Foreign Service of the United States 



APPOINTMENT OF AN AMERICAN MINISTER TO SAUDI ARABIA 



[Released to the press February 6] 

The Department has been informed in a 
telegram from Jidda, Saudi Arabia, received 
on February 5, 1940, that the Honorable Bert 
Fish, American Minister to Egypt, has pre- 
sented his credentials to His Majesty Abdul 
Aziz Ibn Saud, King of Saudi Arabia. 

Mr. Fish, who has been American Minister 
in Egypt since 1933, was appointed by the 



President on July 12, 1939, as American Min- 
ister also to Saudi Arabia. He is the first 
Ameiican Minister ever to be accredited to 
that country. 

Whereas 10 years ago there were no more 
than a score of Americans in the whole extent 
of the Arabian Peninsula, today Americans 
number approximately 500, including some 273 
Americans in Saudi Arabia alone. 



160 



DEPARTMENT OF STATE BULLETIN 

FOREIGN SERVICE EXAMINATION 



(Released to the press February 10) 

The following candidates were successful in 
the recently completed Foreign Service exami- 
nation: 

Charles W. Adair, Jr., of Xenia, Ohio; born 
ill Xenia January 26, 1914; attended Univer- 
sity of Wisconsm 1931-35. 

H. Gardner Ainsworth, of New Orleans, 
La.; born in Charleston, S. C, March 15, 1917; 
attended Princeton University 1935-39 (A. B.). 

Stewart G. Anderson, of Chicago, 111. ; born 
in Chicago June 10, 1912 ; attended Dartmouth 
College 1930-34 (A. B.) ; iScole Superieur de 
Commerce, Neuchatel, Switzerland, 1934-35 
(certificate) ; New York University Graduate 
School of Business 1935-36; Fletcher School of 
Law and Diplomacy 1937-39 (M. A. 1938). 

Donald B. Calder, of New York City ; born 
in New York City July 24, 1911 ; attended Co- 
lumbia College 1929-33 (A. B.) ; University of 
Grenoble 4 months; University of Berlin 5 
months; University of Chicago 1934r-35. 

Leonard J. Cromie, of New Haven, Conn.; 
born in New Haven February 2, 1912; at- 
tended Yale University 1928-32 (B. A.); 
Geneva School of International Studies, sum- 
mer of 1931; ficole Libre des Sciences Poli- 
tiques, Paris, 1932-34 (diploma). 

W. William Duff, of New Castle, Pa.; bom 
in New Castle September 17, 1916; attended 
Haverford College 193-1-38 (A. B.) ; University 
of Paris 1936-37 ; ficole Libre des Sciences Poli- 
tiques 1936-37; Harvard University 1938-39 
two quarters at the University of Denver 1934, 

Irven M. Eitreim, of Mt. Vernon, S. Dak. 
born in New Underwood, S. Dak., July 1 
1910; attended Augustana College 1928-29 
University of Minnesota 1930-32 (B. S.) ; Har- 
vard University Graduate School of Business 
Administration 1936-37. 

C. Vaughan Ferguson, Jr., of Schenectady, 
N. Y.; born in Schenectady January 12, 1915; 
attended Harvard College 1933-37 (A. B.) ; 
Harvard Business School. 

Lewis E. Gleeck, Jr., of Chicago, III.; bom 



in Lyon, Miss., November 2, 1912; attended 
Pomona College 1930-31, 1932-35 (B. A.) ; Uni- 
versity of Chicago 1935-38. 

Clark E. Husted, Jr., of Toledo, Ohio; born 
in Toledo January 28, 1915; attended Univer- 
sity of Virginia 1932-36 (A. B.) ; University of 
Heidelberg, Germany, 1936-37. 

Richard A. Johnson, of Moline, 111. ; bom in 
Moline April 17, 1910; attended Augustana 
College January 1928-June 1929, September 
1930- June 1932 (B. A.) ; University of Texas 
1932-33, 1935-38 (M. A. 1933, Ph. D. 1938). 

Richard E. Keresey, Jr., of Montclair, N. J. ; 
born in Delawanna, N. J., May 8, 1916; at- 
tended Dartmouth College 1934-36, 1937-38 
(A. B.) ; ficole Libre des Sciences Politiques 
1936-37 (certificate). 

M. Gordon Knox, of Baltimore, Md. ; born 
in Catonsville, Md., June 28, 1913; attended 
Yale University 1930-34 (B. A.) ; Oxford Uni- 
versity 1935^38 (B. A. 1937, B. Litt. 1938). 

Alfred H. Lovell, Jr., of Ann Arbor, Mich. ; 
born in Ann Arbor July 15, 1916; attended 
University of Michigan 1934-36, 1937-38 
(A. B.) ; Fletcher School of Law and Diplo- 
macy 1938-39 (M. A.). 

Scott Lyon, of Columbus, Ohio; born in 
Columbus August 18, 1912; attended Ohio 
State University 1929-34 (Bach, of Chem. 
Eng.) ; Massachusetts Institute of Technology 
June-August 1936, October 1937-June 1938. 

John M. McSweeney, of Boston, Mass. ; bom 
in Boston June 9, 1916; attended Brown Uni- 
versity 1934-38 (A. B.). 

Lee D. Randall, of Higliland Park, 111. ; born 
in Highland Park October 31, 1914; attended 
Yale University 1932-36 (B. A.). 

Robert Rossow, Jr., of Culver, Ind.; born 
in Bloomington, Ind., September 19, 1918; 
attended Colgate University 1935-36; George- 
town LTniversity School of Foreign Service 
1936-39 (B. S. in Foreign Service). 

W. Horton Schoellkopf, Jr., of Buffalo, 
N. Y. ; born in New York City September 13, 
1911; attended Yale University 1931-36 
(B.A.). 



FEBRUARY 10, 1940 



161 



Harry H. Schwartz, of Los Angeles, Calif. ; 
born in Columbus, Ohio, November 8, 1914; 
attended Princeton University 1933-37 (B. A.). 

Bromley K. Smith, of San Diego, Calif.; 
born in Muscatine, Iowa, April 21, 1911; at- 
tended San Diego State College 1928-29 ; Stan- 
ford University 1929-30; Zimmern Interna- 
tional School, Geneva, 1930; Institut des 
Hautes Etudes International, Paris, 1931-32; 
Stanford University 1932-33 (A. B.), 1933-34. 

Henry T. Smith, of Atlanta, Ga. ; born in 
Athens, Ga., December 30, 1914 ; attended Uni- 
versity of Georgia 1935-39 (B. C. S.). 

Byron B. Snyder, of Los Angeles, Calif.; 
born in Los Angeles July 12, 1917 ; attended 
University of California at Los Angeles 1935- 
39 (A. B.). 

Oscar S. Straus, II, of Purchase, N. Y. ; born 
in New York City November 6, 1914 ; attended 
Princeton University 1932-36 (A. B.). 

Wallace W. Stuart, of Greeneville, Tenn. ; 
born in Boston, Mass., May 1, 1912; attended 
Massachusetts State College 1928-32 (B. S.), 



1932-^5 (Ph. D.) ; University of Leipzig 1935- 
36. 

Joseph J. Wagner, of Jamaica Park, N. Y. ; 
born in Coytesville, N. J., August 26, 1910; 
attended New York University 1935-39 (cer- 
tihcate). 

Andrew B. Wardlaw, Jr., of Greenville, 
S. C. ; born in Greenville September 19, 1912; 
attended The Citadel 1930-34 (A. B.) ; George- 
town University School of Foreign Service 
1935-38 (M. S. in Foreign Service) ; American 
University 1938-39. 

Livingston D. Watrous, of Fort Hamilton, 
N. Y. ; born in Schofield Barracks, Hawaii, 
November 2, 1915; attended Princeton Uni- 
versity 193^38 (A. B.) ; Columbia University 
1938-39 (M. A.). 

Elwood Williams, III, of New York City; 
born in New York City February 9, 1914; 
attended Yale University 1931-32; New York 
University 1932-33; Georgetown University 
1936-38. 



Treaty Information 



Compiled by the Treaty Division 



EDUCATION 

Convention for the Promotion of Inter- 
American Cultural Relations (Treaty 
Series No. 928) 

Mexico 

The American Ambassador to Mexico re- 
ported by a despatch dated January 20, 1940, 
that the Diario Oficial, No. 3, Vol. CXVIII, of 
January 4, 1940, publishes a decree whereby 
Mexico ratifies the Convention for the Pro- 
motion of Inter-American Cultural Relations 
signed at Buenos Aires on December 23, 1936. 
The decree was signed by the President of 
Mexico on September 29, 1939. 

Accordmg to the information of the Depart- 
ment the following countries have deposited 



instruments of ratification of this convention 
with the Pan American Union : United States 
of America, Brazil, Chile, Costa Rica, Domini- 
can Republic, Guatemala, Haiti, Honduras, 
Nicaragua, Panama, Peru, and Venezuela. 

AVIATION 

International Convention for Air 
Navigation 

Paraguay 

The American Ambassador to France trans- 
mitted to the Secretary of State with a des- 
patch dated December 16, 1939, a copy of a 
note received from the French Ministry for 
Foreign Affairs dated December 5, 1939, stat- 
ing that the Government of Paraguay has ad- 
hered, eflFective on October 27, 1939, to the 



162 

Convention Kelating to the Regulation of 
Aerial Navigation, signed at Paris on October 
13, 1919, and modified by the Protocols of Octo- 
ber 27, 1922, June 30, 1923, June 15, 1929, and 
December 11, 1929. According to information 
furnished in Official Bulletin No. 26 from the 
International Commission for Air Navigation, 
the countries which have ratified or adhered 
to the convention are listed as follows: Ratify- 
ing co!/7U'/w« — Australia, Belgium, Canada, 
Czechoslovakia, France, Great Britain and 
Northern Ireland, Greece, India, Ireland, Italy, 
Japan, New Zealand, Peru, Poland, Portugal, 
Rumania, Thailand (Siam), Union of South 
Africa, Uruguay, and Yugoslavia; adhering 
counti-ies — Argentina, Bulgaria, Deimaark, Es- 
tonia, Finland, Iraq, Latvia, Netherlands, Nor- 
way, Spain, Sweden, and Switzerland. 

TELECOMMUNICATIONS 

International Telecommunication Conven- 
tion (Treaty Series No. 867) 
China 

According to notification No. 350 , dated 
January 16, 1940, from the Bureau of the In- 
ternational Telecommunication Union at Bern, 
a communication from the Chinese Adminis- 
tration was received on January 3, 1940, stat- 
ing that the Government of China has ap- 
proved the following regulations and protocols 
annexed to the International Telecommunica- 
tion Convention of December 9, 1932, as re- 
vised at Cairo April 4 and 8, 1938 : 

General Radio Regulations (revision of 

Cairo, 1938) 
Additional Radio Regulations (I'evision of 

Cairo, 1938) 
Telegraph Regulations and Final Protocol 

(re^nsion of Cairo, 1938). 



DEPARTMENT OF STATE BULLETIN 



"Slovakia 



The following notice is printed in trans- 
lation, from notification No. 350 from the 
International Telecommunication Union at 
Bern: 



"Communication of January 3, from the 
Legation of Spain at Bern: 

" '. . . The Ministry of Foreign Affairs has 
charged me to inform you that the Legation 
of Slovakia in Spain has notified the Spanish 
Government, in a note verbale of June 14, 1939, 
of the adherence of the Slovakian Republic to 
the International Telecommunications Conven- 
tion (Madrid, 1932), to the Telegraph Regula- 
tions, the Telephone Regulations and the Radio 
Regulations (General Regulations and Addi- 
tional Regulations). 

" 'The Slovakian Ministry of Foreign Af- 
fairs has nevertheless declared that, by the 
adherence of the Slovakian Republic to the 
International Telecommunications Convention, 
its Govenmient did not accept any obligation 
concerning figure 170 of article 26, article 31, 
article 48, and figure 164 of article 31 of 
the Regulations mentioned (Cairo revisions, 
1938).'"* 

*The Bureau of the Union understands that the 
Slovakian reservations in reality relate to figure 170 
(of article 26) and to article 31 of the Telegraph 
Regulations, as well as figure 164 (of article 31) and 
article 48 of the Telephone Regulations (Cairo re- 
visions, 1938). [Footnote in the original.] 



Legislation 



Report from the Secretary of State and Draft of Pro- 
posed Bill in re Foreign Service Retirement Act : 
Message from the President of the United States 
Transmitting a Report from the Secretary of State 
and a Draft of Proposed Legislation to Amend Section 
26 (E) of the Act of February 23, 1931, as Amended 
by the Act of April 24, 1939. (H. Doc. 628, 76th Cong., 
3d sess. ) 5 pp. 

Department of State Appropriation Bill for 1&41 : Hear- 
ings Before the Subcommittee of the Committee on 
Appropriations, House of Representatives, Seventy- 
sixth Congress, Third Session, on the Department ot 
State Appropriation Bill for 1941. il, 288 pp. 250. 

State, Commerce, Justice, and the Judiciary Appropria- 
tion Bill, Fiscal Year l»il. (H. Rept. 1575, 76th Cong., 
3d sess.) 58 pp. 10^. 



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-BULL 



LI/ 



riN 



FEBRUARY 17, 1940 
Vol. II: No. J4 — Publication 14^6 




Qontents 

The American jKbpublics: 

Pan American Day proclamation i65 

The Diplomatic Defense of the Americas: Address by 

Assistant Secretary Berle igg 

Cooperation Between the United States and the Other 
American Republics: The Loan of Civilian Technical 

and Administrative Experts 170 

Provisional Commercial Agreement with Chile . ... 172 
Ratification by Me.xico of the North American Regional 

Broadcasting Agreement 172 

Europe: 

Visit of Sunmer Welles to Europe 172 

Lithuania: National anniversary 173 

The Near East: 

Presentation of letters of credence: 

The Minister of Greece 173 

The Minister of Iran 174 

Egypt: Birthday of the King 174 

Canada: Death OF the Governor General 175 

The Far East: 

Japan: National anniversary 175 

Commercial Policy: 

Trade Agreements: Address by Assistant Secretary 

Long 176 

The Broader Purposes of the Trade-Agreements Pro- 
gram : Address by Assistant Secretary Grady .... 182 



' TEN DENT OF (Jt 



Page 

Departmental Service 186 

Traffic in Arms, Tin-Plate Scrap, etc.: 

Monthly statistics 186 

Treaty Information: 

Arbitration and Judicial Settlement: 
Permanent Court of IntemationalJustice ..... 190 
General Act for the Pacific Settlement of Inter- 
national Disputes 191 

Commerce : 

Provisional Commercial Agreement with Chile 

(Executive Agreement Series No. 119) 191 

Labor: 

Convention Fixing the Minimum Age for the Ad- 
mission of Children to Employment at Sea (Re- 
vised 1936) 191 

Convention Concerning the Use of White Lead in 

Painting (1921) 192 

Convention Concerning Night Work in Bakeries . . 192 
Telecommimications : 

North American Regional Broadcasting Agreement . 192 
Publications 192 



The American Republics 



PAN AMERICAN DAY PROCLAMATION 



[Released to tbe press by the White House] 

Pan Ajierican Day and the FirnETH Anni- 
versary OF THE Founding of the Pan 
American Union 

by the president of the united states 
of america 

A Proclamation 

Whereas in 1930 the Governing Board of 
the Pan American Union recommended that 
April 14 be designated as Pan American Day 
in all the American Republics, and that it be 
established as a commemorative symbol of the 
sovereignty of the American nations and the 
voluntary union of all in one continental com- 
munity; and 

Whereas during the past ten years Pan 
American Day has been annually observed and 
has increased in significance through its em- 
phasis on the spirit of peace, friendship, and 
cooperation uniting the nations of the Amer- 
ican Continent; and 

Whereas in 1940 Pan American Day will 
be especially important because it will mark 
the Fiftieth Anniversary of the founding of 
the Pan American Union, the international 
organization of the twenty-one American Re- 
publics, which was established in accordance 
with a resolution adopted on April 14, 1890, 
by the First International Conference of Amer- 
ican states and which, during the last half 
century, has constantly fostered the develop- 
ment of closer economic, cultural, and juridical 



relations between the nations of the Western 
Hemisphere; and 

Whereas it is most appropriate that the peo- 
ple of the United States should commemorate 
this significant occasion and thereby testify 
to the close bonds of friendship that unite the 
Govermnent and people of the United States 
with those of the other republics of the Amer- 
ican Continent; 

Now, THEREFORE, I, FrANKLIN D. RoOSEVELT, 

President of the United States of America, do 
hereby order that on April 14, 1940, the flag 
of the United States be displayed on all Gov- 
ernment buildings, and do hereby invite the 
churches, the educational institutions, the civic 
associations, and the people of the United 
States generally to observe with appropriate 
commemorative ceremonies this Pan American 
Day and the Fiftieth Anniversary of the 
founding of the Pan American Union. 

In wnTNESs whereof, 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 12" 
day of February, in the year of our Lord nine- 
teen hundred and forty, and of the 

[seal] Independence of the United States of 
America the one hundred and sixty- 
fourth. 

Franklin D. Roosevelt 
By the President: 
CORDELL Huix, 

Secretary of State. 

[No. 2386] 



166 



DEPARTMENT OF STATE BULLETIN 

THE DIPLOMATIC DEFENSE OF THE AMERICAS 

Address by Assistant Secretary Berle ^ 



(Released to the press February 15] 

The real task, I take it, of diplomatic defense 
is to make militai-y defense uimecessary. The 
proper aim of the conduct of foreign relations 
should be to create a state of affairs in which 
the national interest of all parties is pro- 
tected, the structure of international organ- 
ization is preserved, and the use of military 
force is unnecessary. 

Consequently, when we talk about the diplo- 
matic defense of the Americas we are not talk- 
ing about a series of shifts or tricks. Still 
less do we contemplate shifting alliances, a 
juggle of forces resulting in a balance of power, 
or a set of strategems. What we really mean 
is the endless and often unspectacular work of 
so handling the relations of the American fam- 
ily of nations thai they shall be secure, inde- 
pendent, and free, both in their economic and 
in their political life. Nations which are safe, 
and which rest on a sound economic founda- 
tion and which arc fi'ee to carry their political 
and cultural evolution to the greatest height 
of which they are capable, are as nearly secure 
and defended as nations in this modern world 
can be. 

I disclaim any expertness in military affairs. 
But I think you have been told by the militarj' 
men that the Uniied States is safe so long as 
no overseas powei- establishes a military base 
of operation on this hemisphere. By good 
fortune, this is also true of all our American 
neighbors. In the diplomatic field the same 
proposition holds. So long as the American 
family of nations conducts its own affairs, so 
long as no overseas power dominates the life 
of any part of the Americas, the hemisphere, 
in the present stat>! of affairs, is diplomatically 
defended. 

The events of the past few years have un- 
happily taught us that there may be other ways 

'Delivered nl the New York Herald-Tribune Fonini 
Inter-American Conference, February 15, 1940. 



of establishing domination than that of direct 
military conquest. The lesson is an old one. 
President Monroe, in formulating the famous 
Doctrine, recognized it when he paid his re- 
spects without saying so to the Holy Alliance — 
that group of West European powers which 
then dreamed of reestablishing the imperial 
system in the Americas. That is why the Mon- 
roe Doctrine refers not only to the actual tak- 
ing of territory but also to the establishment 
of a foreign "system" within the New World. 
We have seen that same technique applied in 
recent years, chiefly by the use of propaganda 
and the attempt to oiganize groups within 
the country for the purpose of influencing or 
dominating its policy. The object, of course, 
is to deprive the country of its independence by 
seizing its government from within. Were 
such an attack made upon the Americas, the 
primary line of defense would be diplomatic 
rather than military. 

In the pan-American group of nations we 
have rather definitely discarded certain of the 
Old World methods. This hemisphere has 
been less militarized than any similar area, 
with a like population, in modern history. 
When we speak to each other in the American 
family, it has to be with the voice of reason 
and common sense. All of us have not only 
renounced any right to intervene forcibly in 
our neighbor's affairs, but we have pledged our- 
selves to settle disputes within the continent 
by diplomacy, by the use of arbitration, or by 
international justice. These pledges are taken 
seriously. 

Equally, we have not attempted the use of 
propaganda or organization of minorities. 
This is perhaps because the more we learn 
about the use of propaganda in other parts 
of the world, the less we like the result, and 
the less we are impressed with its ultimate use- 
fulness. It is a healthy sign, on the whole, 
that the American Continent reacts against 
heavy doses of foreign doctrine. Occai-ionally, 



FEBBT7ART 17, 1940 



167 



our own Government is asked why, when other 
countries resort to liigh-pressure propaganda 
methods, we do not meet that sort of activity 
on its own ground. So far as the United States 
is concerned, we have felt, first, tliat we do not 
wish to make use of that sort of weapon be- 
cause of its essential dishonesty; and second, 
that from a highly practical point of view, we 
doubt that such propaganda would be effective, 
were we to try. Instead, we have steadily 
endeavored to pursue the line of seeking com- 
mon understanding; and the method of doing 
this is the real subject for this talk this 
afternoon. 

You all have in mind, I am sure, the back- 
gi'ound of the diplomacy of the Americas. 
After the liberation of most of South America 
from the Spanish Empire, and of the great 
Republic of Brazil from Portugal, the concep- 
tion arose of a grouping of nations covering 
the entire New World. Originally it was little 
more than a dream; and it is attributed to 
Simon Bolivar. It was understood that the 
nations which had established themselves in- 
tended to be independent and sovereign; 
but it was equally realized that the bonds 
between the nations of the New World were 
unusually strong. Beneath that there was a 
fervent desire to escape from the tragic cycle 
of conquest and reconquest, of wars of aggres- 
sion followed by wars of revenge, of sterile 
campaigns by each nation to establish a dom- 
inant position, only to lose it a few years later. 
The Old World, just after the Napoleonic 
Wars, was not very much more inspiring than 
it is today; and the three Americas souglit 
escape from that seemingly endless prison 
house of continual warfare. 

So there arose the system of inter-American 
conferences. They began slowly and halt- 
ingly; at times, the possibility of hemispheric 
cooperation seemed almost dead. Yet, through 
the years, statesmen, writers, philosophers, and 
public-spirited gi'oups like your own declined 
to let the idea die. Slowly, it gathered head- 
way. Half a century ago, it was given added 
impetus by the organization of the Pan Amer- 
ican Union, which celebrates its fiftieth birth- 
day in a few weeks. 



With this came the series of systematic inter- 
American confei'ences which, as you all know, 
take place every 4 or 5 years, though occasion- 
ally special conferences are called where there 
is unusual work to be done. Already we begin 
to see the system emerging. We do not have 
international conferences in the New World 
for the i^urpose of ending wars. We have 
them for the purpose of maintaining and de- 
fending our peace — a radically different idea. 

I need not recount here the long history by 
which the principles of the American family 
were forged out — a sort of informal constitu- 
tion to which the New World already sub- 
scribed. It is enough to say that today the 
juridical equality of all of the 21 states is 
recognized: small and large, strong and weak. 
In like measure, the use of force as between 
this group has been renounced; orderly proc- 
esses for the settlement of disputes exist; and 
the right of intervention by any of us in the 
affairs of any others of us has been ended. We 
have thus begun to work out the essential prin- 
ciples of the Cooperative Peace, which is the 
great contribution of the western world to the 
conduct of foreign affairs. The diplomatic 
defense of the Americas is, in essence, the 
proper working of the Cooperative Peace. 

Disturbed conditions in world affairs have 
forced a new development in the past few 
3'ears. New doctrines — or moi-e accurately, old 
doctrines in new dress — have once more domi- 
nated the international scene. There have 
been claims that the possession of great force 
entitled the possessor to mastery of the world. 
Tliere have been claims that certain races were 
born to rule and others to serve. There has 
been talk of an international dictatorship, in 
which the dictator appeared to be the only 
solid certainty. The names have varied, but 
the effect has been unhappily all too plain: a 
world in which peace ceased to exist save by 
grace of some conqueror. Waves of these 
forces washed across the oceans and were felt 
in the American Continent. Plainly, it was 
time that the American family of nations 
should consider not only its internal organiza- 
tion but the position it should take with regard 
to world affairs. 



168 



DEPARTMENT OF STATE BUULETIN 



That is precisely what happened. At Buenos 
Aires in 1936 the watchword was inter-Amer- 
ican solidarity, and the method by which it 
was to be maintained was consultation between 
the American powei-s. At the conference in 
Lima, in 1938, the Declaration of Lima asserted 
the intent of the American nations to defend 
and maintain their independent institutions 
against all comers and to cooperate to that end, 
consulting as to the measures which might be 
necessary, whenever it appeai-ed that the Amer- 
ican peace might be disturbed. By now the 
American grouj) has not only an internal pi-in- 
ciple of organization, but an external policy 
of defense; a policy which stands it in good 
stead at a time when the foundations of the 
Old World seem to be crumbling. 

The Cooperative Peace which is our diplo- 
matic defense involves certain outstanding 
obligations. For, if we mean what we say, any 
member of the American family of nations is 
entitled as a right to request consideration of 
its problems by the whole gi'oup, whenever it 
considers itself in serious difficulty. If, for 
example, any American nation should be put 
in a position where in order to live it had to 
yield its independent control of its own affairs 
to an overseas power, all the Americas would 
be concerned. If, to avoid that, such an Amer- 
ican nation asked help from its American fel- 
lows, all would be obliged to see what, if any- 
thing, they could do to meet the situation. 
Many of these obligations fall most heavily 
upon the United States, which happens to be 
the most populous and the wealthiest of the 
group. Our very ability to assist imposes, as 
I see it, an obligation on us to give help wher- 
ever we properly can. 

In consequence, the diplomatic defense of 
the Americas is an almost continuous process. 
It goes on in endless ways which achieve little 
jiublicity but are vitally important. You 
would find, for example, conferences on public 
health; indeed, the United States Public 
Health Service is almost as well known in 
much of South America as the American dip- 
lomatic service. You would find one country 
asking a mission from anotlier American coun- 



try to reorganize police methods, and getting 
it. You would find that we send our own rep- 
resentatives to conferences on archeology and 
Indian affairs, to communicate the results of 
our own studies, and still more, to draw in- 
formation and wisdom from the many students 
of like affairs in Central and South America. 
You would find inter- American engineers giv- 
ing their services when requested to lay out 
roads — as, for instance, the great pan-American 
highway which will eventually link the Ameri- 
cas from the Canadian border to the Argen- 
tine. You would find that there is a Com- 
mittee on Women's Affairs, under the chair- 
manship of a distinguished Argentine lady, 
Sefiorita Martinez Guerrero, and on which the 
United States is ably represented by Miss Mary 
Winslow, best known for her work in the 
League of Women Voters and the Women's 
Trade Union League. You would find that in 
inter- American matters, both technical and dip- 
lomatic. South Americans work side by side 
with the United States; and you would find 
South American doctors working in American 
hospitals. Were I merely to give the list of 
the constant, continuous, and day-to-day activ- 
ities which go on within the inter-American 
group, the time would be exhausted. 

I do not hesitate to emphasize these matters, 
because they are fundamental. They are less 
spectacular than certain of the events to which 
I shall presently refer, but they represent the 
long-range and continuing work on which the 
Cooperative Peace, and with it the hemispheric 
defense, must ultimately rest. 

Yet there are occasions in which the defense 
of the Americas comes into the strictly dip- 
lomatic field. A notable illustration of this 
was the consultation of Panama held at the 
instance of a number of American republics, in- 
cluding our own, directly after the outbreak 
of war. The primary concern of that consulta- 
tion was to prevent the American peace from 
being threatened by the processes of the Euro- 
pean war. The consultation, which included 
most of the foreign ministers of the continent, 
found no difficulty in declaring that in this 
hemisphere at least the rights of peaceful neu- 



FEBRUARY 17, 1940 

trals must be paramount to the I'ights of bellig- 
erents. It was agreed, accordingly, that they 
should maintain constant contact, with a view 
to making certain that the European war did 
not wash up onto our shores. The declaration 
of Panama set out that assertion : a clean-cut, 
forthright statement that in this hemisphere 
peaceful communication of neutrals must not 
be sacrificed to the exigency of foreign war- 
fare. Further, it appeared perfectly feasible, 
and the event seems to have proved, that the 
use of force is unnecessary to achieve that 
result so long as the American group of nations 
act together. To that is due, in large measure, 
the relative absence of conflict near American 
shores. Thus far, we have been free of war- 
fare to a far greater extent than in the first 
World War. 

But this diplomatic achievement — which 
represents the highest point yet reached in 
the solidarity of the Americas — naturally re- 
quired something more than mere words. For 
that reason, two more or less permanent com- 
mittees have been set up : One, an Inter-Amer- 
ican Committee on Xeutrality, which is in 
session at Eio; the other, an Inter- American 
Advisory Committee on Economic Affairs, 
which is in session at Washington. You readily 
see why both are necessary. No one can pre- 
dict the type of problem that will arise when 
the rest of the world is engaged in war and 
when the eddies of that war may appear at 
any time across the ocean. Constant contact 
and swift decision may be needed; and may 
I add, the continuous application of measures 
which make it unprofitable for anyone to at- 
tempt to wage war on this side of the ocean. 
Decisions of this kind are made in the first 
instance by the Committee on Neutrality at 
Rio. 

In like manner, defense of the Americas in- 
volves assuring to the nations of this hemi- 
sphere a reasonably imdisturbed economic life 
so far as that is possible in an upset world. 
The Inter-American Advisory Committee sit- 
ting at Washington was charged with en- 
deavoring to do something about that. In 
consequence that Committee assumed the task 



169 

of examining communications, shipping, the 
possible organization of markets, where there 
had been a sudden stoppage of normal trade. 
It considered the problem of finance and 
worked out and adopted a project for an In- 
ter-American Bank, which has now been sub- 
mitted to the 21 governments for suggestion 
and ratification. If this project is brought 
to a successful conclusion, it is possible that 
:^ new and highly significant piece of inter- 
national nuichinery may have been brought 
into existence — a method by which movements 
of capital from countries which have capital 
to countries which need it may be made co- 
operative instead of monopolistic. It was this 
that led the Chilean delegate to the Intei-- 
American Advisory Committee to observe that 
it might well be that the creation of an Inter- 
American Bank would prove the greatest 
inter-American development since the enun- 
ciation of the Monroe Doctrine. 

The exploits of inter-American diplomacy 
do not create great heroes in the ordinary 
sense of that word. They do something much 
more fundamental. They create groups of 
friends. If the,y are successful, they offer to 
the world a living demonstration that inter- 
national affairs can be carried on without 
throat, without intrigue, and without fear. 
They offer the picture of a continent which is 
quite able to use force where force is needed, 
but which has found a better and a more ef- 
fective way. The whole course of inter- 
American life is designed not to build em- 
pires but to build life. In proportion as this 
type of defense is successful, it is reflected in 
better living conditions for millions of people 
to whom diplomacy is but a word. We are 
sometimes laughed at from overseas as being 
too simple, too trustful of human nature. To 
this I can only answer that as a result of this 
trust in fundamental moral principles the 
Western Hemisphere is better defended today 
than any other part of the earth's surface; and 
that it can match its record against the rest 
of the world with a pride which comes not 
merely from its power but from its peaceful 
achievements. 



170 



DEPABTMZ^rr OF STATE BTTLLETEf 



COOPERATION BETTN-EEN THE UNITED STATES AND THE OTHER 
A-MERICAN REPUBLICS 

The Loan of Cirilian Technical and Administrative Experts * 



The law authorizing the loan of the services 
of civilian officials of the United States to the 
governments of the other American republics 
was enacted by the United States Congress in 
1938.' in response to recommendations framed 
by the Department of State and endorsed by 
President Roosevelt. Thereunder the President 
Ls empowered to make available on request the 
services of technical and administrative experts 
in the employ of the United States, for duty 
abroad for an initial period of 1 year, which 
period can, however, be extended should the 
government concerned so desire. 

This measure was framed as a contribution 
toward the successful development of the pro- 
gram of cooperation between the United States 
and the other American republics, and it evoked 
such inunediate intere^t that the Interdepart- 
mental Committpe which undertook a survey 
of the various avenues of government collabo- 
ration reported to President Roosevelt in 
November 193S • that the law might well be- 
come the "cornerstone on which many future 
cooperative efforts of a practical nature will be 
based.'" That this do:", not appear to have 
been an overstatement is attested by the fact 
that in the year and a half since the original 
law was enacted. 9 governments have availed 
themselves of its provisions, and 20 separate 
assignments totaling 83 months of service 
abroad have been made. 

The ground covere<! by these a.ssignments 
represents a substantial area in the field of 



' R«»prlDt of an artlflp l.y EIIIb O. Briggs, Assistant 
(Tilpf of ihf nivWon of the American Republics, 
Department of State, whii-h appeared in the Bulletin 
of the fan Amerii-nn Cnion, Vol. LXXIV, No. 1, 
January 1940. 

" Act of May 25, 193S, as amended by Public, No. 63, 
76th CoriK.. approve<] .May .3. 1939. 

*8ep Prmn Rrlmtri, r,t I)eccmber 3, 1938 (Vol. XrX, 
No. 479), pp. .SS.'V^OS. 



practical collaboration, including the furnish- 
ing of advisory services in highway engineer- 
ing and road building, immigration procedure, 
taxation and monetary problems, customs ad- 
ministration, problems of agricultural econ- 
omy, fisheries resources and their conservation, 
patrol-boat operation, and library reorganiza- 
tion. A number of further requests are re- 
ceiving consideration at the present time, while 
favoi-able action on certain others was not pos- 
sible becau.se of limitations of personnel or 
resources in the pertinent government office. 
The coiTespondence and related activities inci- 
dent to the administration of the act have 
become so considerable as to occupy much of 
the time of one of the officers of the Division 
of the American Republics in the Department 
of State. 

With respect to the question of reimburse- 
ment by other governments for the services 
rendered, the provisions of the law were pur- 
posely drafted to provide as great a degree of 
flexibility as possible, with a view to meeting 
in each specific case the desires of the govern- 
ment wishing to avail itself of the services. 
Tliu.>- it is pro\-ided that all remuneration to 
the individual officer concerned shall continue 
to b<- paid by the United States Government 
(tha; is, that no compensation whatever may 
be accepted by an officer from a foreign gov- 
ernment), but that should a foreign govern- 
ment desire to reimburse the Government of 
the United States in whole or in part for the 
expenses of the detail, the President is autlior- 
ized to accept such reimbursement. Arrange- 
ments as to reimbursement are customarily 
agreed upon in advance of an assignment 
through informal discussion, and the President 
is authorized by the law to accept whatever 



FEBRUARY 17, 1940 



171 



mutually satisfactory contribution the other 
government may wish to make. 

In a large majority of the assignments thus 
far, a substantial part of the cost has been 
defrayed by the country utilizing the services. 
This in turn has made possible these temporary 
details within the general appropriations avail- 
able to the bureaus and agencies in question, 
since the law as amended in 1939 authorizes 
the allocation of funds received from foreign 
governments as reimbursement, to the credit of 
the agency or department furnishing the seiT- 
ices. Although in some instances these details 
have represented a sacrifice to the bureau or 
office involved (in that the duties customarily 
performed by one of its officers have had to 
be undertaken bj' others during the period of 
his absence from the United States), all 
branches of the Government have cooperated 
loyally toward acceding to requests received 
and in making membei's of their personnel 
available for cooperative work. 

The procedure involved in making an as- 
signment under Public No. 63 is usually for the 
diplomatic mission in Washington of the coim- 
try concerned to make informal inquiry of the 
Division of the American Republics of the De- 
partment of State, indicating the type of serv- 
ice, the qualifications required, and the 
approximate period of the detail. Such an in- 
quiry, however, is not infrequently received in 
tlie first instance by a United States diplomatic 
or consular officer in another American repub- 
lic, in which case it is forwarded to Washing- 
ton for attention. 

Upon the receipt of an inquiry, the Depart- 
ment of State ascertains whether an officer hav- 
ing the desired technical qualifications and 
experience is available in Government employ, 
and whether his services can be spared for the 
anticipated period of the detail. The roster 
of possible candidates is by no means confined 
to persons serving in the District of Columbia, 
many of the agencies of the United States 
Government possessing field services and other 
specially trained personnel serving in other 
parts of the country. In one case involving 



the request for several specialists to collaborate 
in surveying various phases of the national 
economy of one of the American republics, ex- 
perts were obtained from three separate 
branches of the United States Government, and 
a mission of five persons was dispatched to 
undertake the work. 

Investigation in response to an inquiry hav- 
ing been completed, the interested Washington 
diplomatic mission is informed and thereupon 
makes a formal written request to the Secre- 
tary of State. Each case is submitted to the 
White House for final approval, and the Presi- 
dent has taken a keen personal interest not only 
in the assignments themselves, but also in the 
details of each arrangement and in the success 
of the work subsequently carried out abroad. 
Questions involving the acceptance of reim- 
bursement from other governments are likewise 
submitted to the President for his approval. 

Instructions are issued by the Secretary of 
State to each officer detailed for duty abroad 
informing him of his selection by the President 
and of the scope and probable duration of his 
duties. A copy of these orders is sent simul- 
taneously to the appropriate United States 
ambassador or minister, who is requested to 
inform the government to which he is 
accredited of the date of arrival of the officer 
and thereafter to cooperate with him in every 
way toward the successful execution of the 
assignment. 

In the view of the Interdepartmental Com- 
mittee on Cooperation with the American 
Eepublics — a body organized at the instance of 
the President in May 1938, which now includes 
16 separate agencies of the United States 
Government — it would be difficult to over- 
estimate the value of the cooperation thus far 
obtained, notwithstanding the fact that the 
authorizing legislation has been in existence 
for less than 2 years. The various problems, 
solution of which has been undertaken within 
its scope, have been of genuine reciprocal in- 
terest, and the officers of the United States who 
have served abroad considered it a privilege 
to meet and work with officials engaged in sim- 



172 

ilar activities in other countries. The advan- 
tiiges from such associations are obvious. 
Rehitions of mutual confidence and personal 
friendship liave been established which endure 
beyond the limited periods of the details them- 
selves. Much of the work is of a continuing 
nature, and these assignments have not infre- 
quently resulted in subsequent, visits to the 
United States on the part of chiefs of bureaus 
and other responsible officials of neighboring 
governments, thus giving officers in Washing- 
ton a welcome opportunity to repay the hospi- 
tality received from their friends in the south. 
The act is a concrete demonstration of prac- 
tical collaboration, in a widening field of joint 
inter- American effort; it involves partners 
working in confidence and friendship, in a 
peaceful American world. 



DEPABTMENT OF STATE BULLETIN 

PROVISIONAL COMMERCIAL AGREE- 
MENT WITH CHILE 

An announcement regarding the provisional 
commercial agreement between the United 
States and Chile effected by exchange of notes 
on January 6 and February 1, 1938, appears 
in this Bulhfin under the heading "Treaty 
Information." 

-f -f >- 

RATIFICATION BY MEXICO OF THE 
NORTH AMERICAN REGIONAL 
BROADCASTING AGREEMENT 

An announcement regarding the ratification 
by Mexico of the North American Regional 
Broadcasting Agreement, signed at Habana on 
December 13, 1937, appears in this Bulhtim 
under the heading "Treaty Information." 



Europe 



VISIT OF SUMNER WELLES TO EUROPE 



I Released to the prps.s February 14] 

Following is a .statement by the Secretary of 
State : 

"This news item •• seems to be one more at- 
tempt at trouble making. I think the Pres- 
ident and I have agreed on policies and meth- 
ods pertaining to our foreign affairs as nearly 
miiformly as any other two persons who have 
occupied our respective positiims. Nothing 
out of the ordinary occurred in the discussions 
and conferences between us leading to the an- 
nouncements made by the President of the 
special mission to Europe, and later by myself 



relating to the problems of economic restora- 
tion and of disarmament after the war. 

"As to Mr. Welles, I regard him as one of 
my most trusted personal friends and loyal 
co-workers, and it is always in that spirit that 
we discuss the various phases of our duties and 
problems. I do not think a more capable per- 
son coidd be sent upon the proposed European 
mission than Mr. Welles." 



'An article by the chief of the Washington Bureau 
of the Chiea</o Tribune which apijeared in the Wash- 
hif/toii Times- He raid on the subject of the special 
mission to Europe of the Under Secretary of State, 
Mr. Sumner Welles. 



FEBRUARY 17, 1940 



173 



LITHUANIA: NATIONAL 
ANNIVERSARY 

[Released to the press February 16] 

The President hns sent the following tele- 
gram to the President of the Republic of 
Lithuania. Antanas Smetona : 



"February 16, 1940. 
"Please accept my cordial greetings on this 
national anniversary of Lithuania and my 
sincere good wishes for the welfare of your 
fellow countrymen. 

Frankun D. Roose\'elt" 



The Near East 



PRESENTATION OF LETTERS OF CREDENCE 

The Minister of Greece 



[Released to the press February 13] 

Remarks of the neioly aj)pointed Minister of 
Greece, Mr. Cimon P. DiamantopouJos, upon, 
the occasion of the presentation of his letters 
of credence : 

Mr. PREsroENT: 

In remitting to Your Excellency my creden- 
tials as Envoy Extraordinary and Minister 
Plenipotentiary of Greece to the United States 
as well as the letters of recall of my distin- 
guished predecessor, Mr. D. Sicilianos, I am 
charged by His Majesty the King of the Hel- 
lenes personally to express to you the senti- 
ments of gratitude which the Greek people will 
ne\cr cease to have toward the Government and 
the great American Nation for the moral and 
material assistance they have always extended 
in many circumstances to the Greek Nation 
especially during the last 20 years. 

Premier Metaxas equally instructed me to 
convey to you, Mr. President, his personal 
homage and the assurance of the admiration, 
friendship, and sentiments of gi-atitude which 
the Hellenic Nation feels for the noble Ameri- 
can people. 

Very proud a)id happy of my mission, I beg 
to assui'e you that I will do my utmost for 
the strengthening of the friendly relations 
which, very fortunately, exist between the 
United States and the Kingdom of Greece and 
to express my heartiest wishes for the welfare 



of the glorious Republic of the United States 
as well as for your personal happiness. 

President RooseveWs reply to the remarhs of 
Mr. Cimon P. Diamantopoulos : 

Mr. Minister: 

It gives me great pleasure to receive from 
your hands the letters of His Majesty the King 
of the Hellenes accrediting you as Envoy Ex- 
traordinary and Minister Plenipotentiary near 
the Government of the LTnited States. I also 
accept the letters of recall of your distinguished 
predecessor, Mr. Demetrios Sicilianos. 

The sentiments which His Majesty has so 
graciously expressed toward the Government 
and people of the United States through you 
are most deeply appreciated. I request you to 
convey to His Majesty my warmest personal 
regards. I also request you to convey to Pre- 
mier Metaxas an expression of my apprecia- 
tion for his greetings and friendly sentiments. 

The American people are ever cognizant of 
their priceless heritage of culture and enlight- 
enment from ancient Greece, where the earliest 
institutions of democracy flourished. They 
are no less aware of the strong bonds 
which link our two countries at the present 
time, notably through the contributions of 
Greece to our citizenry. I reciprocate most 
heartily your wishes for a continuation and 
strengthening of the friendly relations so 



174 



DEPARTMENT OF STATE BULIETIN 



happily existing between your country and my 
own, and assure you of the readiness of the 
American Government to cooperate with you to 
this end. 



I welcome you, Mr. Minister, as His Hellenic 
Majesty's representative in the United States, 
and sincerely trust that your residence among 
us will be agreeable. 



The Minister of Iran 



[Released to the press February l.S] 

Translation of remarks of the newly appointed 
Minister of Iran, Mr. Moham.med Schayesteh, 
upon the occasion of tJie presentation of his 
letters of credence : 

Mr. President: 

I have the honor to hand to Your Excellency, 
together with the letter of recall of my prede- 
cessor, the letter by which His Imperial Majesty 
my August Sovereign has deigned to name me 
as his Minister near Your Excellency. 

The sincere desire of His Imperial Majesty 
to see the bonds of fraternity between our two 
countries made closer and the efforts made to 
this end by the Imperial Government have al- 
ready traced my line of conduct, at the same 
time facilitating my high task. Thus, trusting 
in Your Excellency's benevolence and relying 
upon the spirit of peace and upon the support 
of the Government of the Republic, I am per- 
suaded that the relations of friendship and good 
understanding uniting our two countries will 
be, to our mutual interest, more and more 
consolidated. 

It is unnecessary for me to say that, to bring 
to a good end Ihe high mission entrusted to me, 
I shall exhibit the greatest zeal and I am sure 
that, in the exercise of my high duties. Your 
Excellency's benevolence and the collaboration 
of the Government of the Republic are entirely 
mine. 

President RooscveWs reply to the remarks of 
Mr. Mohammed Schayesteh: 
Mr. Minister : 

It gives me great pleasure to receive from 
your hands the letter whereby His Imperial 
Majesty the Shah-in-Shah accredits you as 



Envoy Extraordinary and Minister Plenipoten- 
tiary of Iran near the Government of the United 
States of America. I accept also the letter by 
which His Imperial Majesty has recalled your 
distinguished predecessor. 

The desire of your Sovereign that yon de- 
vote your efforts toward cementing the bonds 
of friendship between our two countries is 
highly gratifying to me. The great contribu- 
tion which Iran has made in the past to our 
common civilization is too well known to need 
any emphasis. It is in the light of that con- 
tribution, however, that I have followed with 
particular interest the more recent far-reach- 
ing social and economic reforms of your coun- 
try under the inspiration of His Majesty the 
Shah-in-Shah. 

You may be assured that, in the execution 
of your high mission, you will receive the 
friendly cooperation of the officials of this 
Government and my own personal support at L 
all times. 

I shall be most grateful if you will convey 
to His Imperial Majesty the Shah-in-Shah my 
friendly sentiments for him and my sincere 
wishes for the happiness and prosperity of the 
Iranian people. It is my sincere hope, Mr. 
Minister, that your sojourn in Washington 
among us will be agreeable to you in every 
way. 

-♦■ -f -f 

EGYPT: BIRTHDAY OF THE KING 

[Released to the press February 12] 

The President has sent the following tele- 
gram to the King of Egypt, Farouk I : 

"February 11, 1940. 
"Upon this anniversary of Your Majesty's 
birth I am happy to extend my heartiest con- 



FEBRUARY 17, 1940 

gratulations and my sincere best wishes for 
Your Majesty's health and happiness. 

Franklin D. Koose\t:lt" 

[Released to the press February 13] 

Following is a translation of a message 
received by the President from the King of 
Egypt: 

"Abdine Palace, 
Cairo, February 12, 191fi. 
"Deeply touched by the friendly wishes and 
congratulations which Your Excellency ex- 
presses to me on the occasion of mj' anniversary 
I address to you all my thanks and my most 
cordial wishes for your happiness and 
prosperity. 

Farouk R." 



CANADA: DEATH OF THE GOVERNOR 
GENERAL 

[Released to tbe press February 11] 

The President has sent the following mes- 
sage to the Lady Tweedsmuir, widow of the 
former Governor-General of Canada: 

"February 11, 1940. 
"I was shocked and deeply grieved to learn 
of Lord Tweedsmuir's death. Mrs. Roosevelt 
and I recall with pleasure and affection meet- 
ings with Lord Tweedsmuir and you and send 
you our sincere sympathy in your great loss. 
Franklin D. Roosevelt" 

The Secretary of State has sent the following 
message to the Lady Tweedsmuir: 

"February 11, 1940. 
"I have learned with great sorrow of your 
distinguished husband's death. Mrs. Hull 
joins with me in sending you an expression 
of our deepest sympathy. 

CoRDELL Hull" 

The Secretary of State has sent the follow- 
ing message to William Lyon Mackenzie King, 
Prime Minister of Canada: 



175 

"February 11, 1940. 
"In Lord Tweedsmuir's untimely death 
Canada has suffered a great loss, and in the 
name of the Government and the people of 
the United States I send you a message of 
deepest sympathy. It was my privilege to 
know Lord Tweedsmuir and to admire him as 
a public spirited official, an outstanding figure 
in the field of letters and a warm personal 
friend. His death has filled me with sadness. 
CoRDELL Hull" 

[Released to the press February 13J 

The Secretary of State received the follow- 
ing telegram the night of February 12 from 
the Prime Minister of Canada : 

"Ottawa, Ontario, 

February 12, 191fi. 
"The Honorable Cordell Hull: 

"My colleagues and I deeply appreciate your 
message of sympathy sent in the name of the 
Government and people of the United States. 
Our appreciation of its words will be shared in 
equal measure by the people of the Dominion. 
Canadians and Americans alike have lost a 
great man wlio nobly enriched our common 
literature and dedicated so much of his life to 
the strengthening of our mutual friendship. 
Your own personal sorrow reveals the place 
Lord Tweedsmuir came to have in the hearts 
of those of your countrymen who were privi- 
leged to enjoy his friendship. The personal 
regard which he had for you was very deep 
indeed. It is a consolation to recall at this 
time the close friendship Lord Tweedsmuir 
enjoyed with the President and yourself and 
the many occasions on which in the happiest 
ways it entered into our conversations. 

W. L. Mackenzie King" 



The Far East 



JAPAN: NATIONAL ANNIVERSARY 

[Released to the press February 12] 

The President has sent the following message 
to Emperor Hirohito of Japan: 



176 

"The White House, 

Felmm-y 11, Wlfi. 
''Upon the occasion of this memorable anni- 
versary I am happy to extend my sincere good 



DEPARTMENT OF STATE BULLETIN 

wishes for the welfare of Your Majesty and 
your family. 

Franklin D. RoosEVEi;r" 



Commercial Policy 



TRADE AGREEMENTS 

Address by Assistant Secretary Long " 



IRclcasod to tile press February 12J 

Tiiis is Lincoln's birthday. Perhaps the 
spirit of the Ureat Emancipator will contribute 
to a nonpartisan atmosphere in our discussion 
of one of the most important problems in the 
economic life of our country today. 

There is now pending for the active con- 
sideration of the American people and of the 
Congress the question of an extension of the 
Trade Agreements Act, which was first adopted 
for a period of 3 years in 1934 and then ex- 
tended for an equal period in 1937. 

Trade agreements are a means of lowering 
obstacles to American exports and of pene- 
trating barriers raised in other countries 
against the importation into those counti-ies of 
the products of American farms and factories. 
They are designed to increase the volume of 
American foreign trade. 

Since there is such a persistent vitality in 
ancient fallacies regarding our foreign trade, 
and since these fallacies will be repeated with- 
out end in the discussions attending this ques- 
tion, there is need for continuous repetition of 
the simple basic facts regarding foreign trade 
and its importance to all of us. I propose, 
therefoie. to review biiefly certain cardinal facts 
about our foreign trade and our commercial 
policy as embodied in the trade-agreements 
program. 

The first and central fact is that we cannot 
hope to maintain a satisfactory economic situa- 

* Delivered before the Women's Luncheon Club, 
Philadelphia, I'ji., February 12, 1940. 



tion in the United States without an adequate 
volume of foreign trade. This is true of both 
exports and imports. 

Our national economic machine is geai'ed 
to the production of a number of important 
commodities in quantities which exceed our 
domestic requirements. Substantial portions 
of our output of cotton, tobacco, corn-hog prod- 
ucts, M'heat, fruits, refined copper, certain 
petroleum products, machinery of various 
types, and many others must be marketed 
abroad, if these brandies of production are to 
])rosper. Once they are deprived of iidequate 
foreign outlets, the millions of people involved 
in these branches of production find their pur- 
chasing power impaired. As a result, they can 
buy less of goods produced in this country. 

The loss of foreign markets for our export- 
able surpluses thus leads to a shrinkage of our 
domestic market as well. This effect is ac- 
centuated by the reduced volume of business 
done, in consequence of the shrinkage of mar- 
kets, by our ports, our railroads, our other 
means of transportation, our banks, our mer- 
chandizing establishments, and so forth. Loss 
of foreign markets leads to stagnation, depres- 
sion, unemployment, and general distress, 
which spread, step by step, throughout the 
whole economic system. 

It is true, of course, that the value of exports 
is less than 10 percent of the value of our total 
production of movable goods. This statistical 
fact leads some people to the dangerous con- 
clusion that, therefore, our export trade is not 



FEBRUARY 17, 1940 



177 



of any appreciable economic importance to us 
and that its reduction or even complete elimi- 
nation would not hurt us much. A moment's 
thought, however, reveals clearly the fallacy 
inherent in this view. 

Our economic system is not organized into 
two watertight compartments, one of which, 
representing 90 percent of our productive ef- 
fort, supplies our domestic market, while the 
other, representing the remaining 10 percent, 
works for the foreign market. If that were 
the case, we might be able to lop off the 10- 
percent compartment, without much injury to 
the 90-percent compartment. But that is not 
the case. The branches of production which 
produce exportable surpluses are essential parts 
of the whole intricate machinery which is our 
economic system. I m p a i r m e n t of these 
branches of production through loss of foreign 
markets, which in many cases represent far 
more than 10 percent of their total sales, causes 
loss of efficiency throughout the entire system. 

Of course, in any foreseeable future, we are 
not likely to lose all of our foreign markets. 
Even at the depth of the great depression, our 
export trade was still one-half in volume and 
one-third in value of what it had been before 
the depression. But as that experience so un- 
pleasantly proved, a loss of foreign markets 
of that magnitude contributed powerfully to 
the unforgettable distress in agriculture, in- 
dustry, and all other phases of our economic 
life from which our Nation suffered so acutely. 

Our imports are tisually somewhat less in 
value than our exports. Tliey thus represent 
an even smaller percentage of our total produc- 
tion than do our exports. Would we be justi- 
fied in concluding, from this thoroughly 
misleading statistical ratio, that imports are of 
little or no imjiortance to us ? 

Here again, as in the case of exports, it is 
necessary to look at the things we import and 
appraise their significance for the operation of 
our economic system. 

Some of the commodities which we import 
from abroad are not and cannot be produced 
in this country. P"or some we can find costly 
and unsatisfactory substitutes; others we 



would have to do without, if we eliminated our 
import trade. Unless we import tin, nickel, 
many other rare metals, rubber, coffee, tea, 
spices, and a host of other commodities, we 
shall deprive ourselves of automobiles, tele- 
pliones, many electrical appliances, and count- 
less other comforts and conveniences of modern 
life; we shall even have to change profoundly 
our eating and drinking habits. 

Some of the connnodities which we import 
from abroad are j^roduced in this country, but 
in quantities entirely insufficient for our needs, 
in spite of the fact that we have long imposed 
high duties on their importation. Some of the 
imported commodities differ so markedly in 
quality, price, use, or marketing season from 
our own production that they can really be 
classed with commodities not produced at all 
in this country, and without which our stand- 
ards of consumption must necessarily decline. 

Salt is a small ingredient of food. Yet how 
many of us would prefer unsalted to properly 
salted food? 

I do not mean to imply that anyone in his 
right senses proposes a complete elimination of 
imports. But when you hear or read the pro- 
nouncements of unreconstructed high protec- 
tionists or of advocates of economic national- 
ism for our country, you cannot escape the 
conclusion that they favor the greatest possible 
reduction of imports without any regard for 
what such action would mean to our national 
economic life — either in terms of exports and 
their implications for our domestic prosperity, 
or in terms of lowered standards of living for 
our people resulting directly from the exclu- 
sion of imports. 

This brings me to the second cardinal fact 
which I .should like to review today. Inter- 
national trade is not a one-way affair. A na- 
tion cannot sell without buying. In the final 
analysis, our exports, which are other coun- 
tries' imports, pay for our imports, which are 
other countries' exijorts. In considering the 
subject of foreign trade, it is necessary to look 
at exports and imports as interrelated parts of 
a single process, rather than as being separate 
and distinct from each other. This is of par- 



178 

ticular importance in connection with measures 
of governmental regulation of foreign trade. 

During the post-war period, there was a 
continuous growth in the world of more and 
more stringent obstructions to international 
trade. In this movement, our country par- 
ticipated prominently by the successive up- 
ward revisions of our tariff in 1921 and 1922 
and in 1930. 

In thus raising our tariff, the only thing that 
was envisaged was the protection of certain 
of our domestic industries, without any regard 
to the effects of these policies on our export 
trade or on our consuming public. The only 
thought in the minds of those who were 
responsible for tariff revision was to reduce 
imports, and to do so by indiscriminate and 
oftentimes unreasonably excessive, embargo 
tariff rates. 

Since other countries were doing the same 
thing — in part, in retaliation for our actions — 
the whole development of mutually beneficial 
trade among nations was retarded. During 
the twenties, the real situation was obscured 
by the vast volume of international borrowing 
and lending, in which our country took a lead- 
ing role. But this unhealthy process had to 
come to an end sooner or later. And when 
the bubble burst, 10 years ago, there ensued an 
even greater orgy of trade restrictions than 
ever before. 

New devices were widely adopted for the 
absolute limitation of the quantities of imports 
and for otherwise obstructing the flow of trade. 
New preferential trading arrangements grew 
up to the disadvantage of countries outside 
those arrangements. International trade be- 
came drastically reduced, and much of what 
remained became diverted out of its ordinary 
channels. 

This Nation found itself in a situation in 
which its foreign trade was shackled by the 
excessive tariff duties of the Hawley-Smoot 
Act and by the absence of any effective instru- 
ment for entering into arrangements with 
other countries for the reciprocal reduction of 
excessive obstacles to the interchange of mu- 
tually needed goods. As restrictions and dis- 



DEPAKTMEKT OF STATE BXILLETIN 

criminations against our goods mounted in 
foreign markets, our exports fell from more 
than 5 billion dollars in 1929 to 1.6 billions in 
1932, and with them our domestic productive 
activity declined disastrously. 

In that situation — and this is the third car- 
dinal fact I wish to review — a way had to be 
found of rebuilding foreign markets for our 
exportable surpluses if our domestic pros- 
perity was to be restored satisfactorily. That 
way was found through the enactment in 1934 
of the Trade Agreements Act through which 
the Congress lodged in the President authority 
to enter into agreements with other govern- 
ments for the facilitation of our exports in 
return for reduction, by not more than 50 
percent, of some of our own excessive and 
unreasonable tariff rates. Under this author- 
ity we have entered into agreements with 21 
countries. The areas covered include the 
colonial areas of the British, French, and 
Dutch Empires. As a result of these agree- 
ments we have received hundreds of conces- 
sions reducing restrictions — sometimes discrim- 
inatory restrictions — on products of particular 
interest to this country. 

Under these trade agi-eements our exports 
have experienced a decided recovery. Not all 
of the increase has been the result of trade 
agreements, of course. Other factors of re- 
covery here and abroad have been operative 
as well. But careful examination discloses 
that the trade agreements have made an im- 
portant contribution to the increase. 

It is impossible in limited compass to review 
the evidence supporting this conclusion, com- 
modity by commodity. But it is certainly sig- 
nificant that our exports to countries with which 
we have concluded agreements have increased in 
greater proportion than have our exports to 
nonagi-eement countries. For example, our 
annual average of exports to all countries in 
the period January 1936 to October 1939 in- 
creased by 35 percent over the average for the 
years 1934 and 1935. In the same periods, 
however, our exports to trade-agreement coun- 
tries such as Canada increased 47 percent, 
Brazil 48 percent, the Netherlands 66 percent, 



FEBRUARY 17, 1940 

and the Netherlands East Indies 134 percent. 
Our trade with all trade-agreement countries 
in 1937 and 1938 was 61.2 percent greater than 
in 1934 and 1935, whereas the increase in ex- 
ports to non -trade-agreement countries was 
only 37.9 percent. 

Furthermore not only have exports from the 
United States shown greater relative gains to 
trade-agreement than to non-trade-agreement 
countries, but the imports of the agreement 
countries from the United States have gen- 
erally increased more than from the rest of 
the world as a whole. Thus under the first 
agreement with Canada, 1936-38, Canadian im- 
ports from the United States increased by 42 
percent over the average for 1934-35, compared 
with only 22-percent increase in Canadian im- 
ports from other countries. 

These gains in our export trade have been 
achieved without material injury to any group 
of producers in this country. We have ad- 
justed our customs duties only in those cases 
in which existing duties were, after careful 
and painstaking examination, found to be ex- 
cessive and unreasonable. "We have done so 
only in those cases in which, in return for such 
adjustments, other countries have been willing 
to reduce their obstructions to our goods. "We 
have done so only to the extent to which, on 
the basis again of most careful and painstaking 
examination, it was found possible to make the 
adjustments without inflicting serious injury 
on the branches of agi'iculture and industry 
concerned. In special cases, where additional 
safeguards were deemed necessary, such safe- 
guards wei'e provided. 

It is with this record of achievement as a 
background that it is now sought to extend for 
another 3 years the authority to enter into trade 
agreements, to maintain and extend the gains 
already made, and to enable this country to 
meet changing conditions in foreign markets 
as they arise in the coming years. 

For in the coming 3 years we shall need the 
flexibility which the trade-agreements program 
affords as greatly as, if not more than, we 
needed it in the emergency of the great depres- 
sion. We are in another kind of emergency 
now. "What conditions may bring forth in 



179 

these future years no one can foresee with ex- 
actitude. The countries constituting our larg- 
est markets have become engaged in war. No 
part of the world will be able to remain un- 
affected by the fact of war. 

We can be sure that our foreign trade will 
be profoundly affected by it. The character 
of our exports, particularly to belligerent 
countries, will be shifted. Some industries 
will find their export markets greatly reduced; 
others whose products are deemed to be more 
essential to war purposes will be stimulated. 
Even our trade with neutral countries will not 
remain unchanged as the effects of war and of 
blockades reach into the economies of those 
countries. In some cases we shall find new 
export outlets by filling the gaps created by 
the inability of belligerent countries to supply 
their former customers; in other markets we 
shall find increased diiBculties as belligerents, 
in an effort to conserve their foreign-exchange 
resources, seek to force bartering arrangements 
upon countries from which they procure food- 
stuffs and raw materials. 

"What all this means is that while we cannot 
foresee all the changes themselves, we can fore- 
see the inevitable fact of rapid change in the 
nature and directions of the world's trade and 
in the trade controls and trading arrangements 
adopted by both belligerent and neutral 
nations. 

If, to meet emergency kaleidoscopic condi- 
tions such as these, our country is to be in a 
position to resist discriminations against its 
commerce, to insure that unreasonable quota 
and exchange restrictions will not be placed 
abroad on our exports, and to shield, as far 
as possible, our domestic economy from the 
disruptive effects of war abroad, we shall need 
a reasonably flexible instrumentality for deal- 
ing directly, within the limits of policy laid 
down by the Congress, with the other countries 
of the world. 

In addition, the extent to which our trade 
with other nations can be maintained in this 
disturbed period on an economically sound, 
mutually advantageous basis will be an im- 
portant factor in easing the adjustments which 
will in any event be difficult enough when the 



180 

war ends. We cannot hope that American 
farms and factories will escape the need for 
these adjustments. But if. to the best of our 
ability, we keep trade lines open and if they 
will continue to serve the peace-time needs of 
the world we shall have to some extent 
mitigated the disruption that will follow. 

We need also to keep alive the principles 
embodied in the trade-agreements program as 
an important American contribution to a more 
stable peace than that which followed the last 
war. War inevitably brings with it a system 
of greatly intensified controls over all forms 
of economic life, including foreign trade. If 
these controls are not to persist into peace- 
time and if the unsettling drive toward maxi- 
mum self-sufficiency which marked the interim 
between the last war and the present one is 
not to be renewed, there must be at the close 
of this war a reasonable prospect for every 
nation that it can find the basis for lasting 
prosperity within its own territorial bound- 
aries, by devoting its productive energies to 
those lines of activity in which it finds itself 
most effective, obtaining through the ordinary 
channels of trade those things which it does 
not produce for itself. 

Economic security and peaceful association, 
based on recognized and observed rules of in- 
ternational conduct, can alone hold out the 
prospect of a stable world order. Neither can 
exist alone indefinitely, but each can contribute 
mightily to the success of the other. In that 
sense, it can be truly said that the principles 
of the trade-agreements program — removal of 
unreasonable and excessive restrictions on in- 
ternational commerce and the elimination of 
international commercial discriminations — are 
indispensable to the establishment of an en- 
during condition of peaceful commerce and, 
therefore, of an orderly world. 

Before closing I want to touch upon certain 
legal and constitutional aspects of this pro- 
gram. Views have been advanced in some 
quarters to the eflFect that it constitutes an 
unwarranted delegation of power to the Presi- 
dent by the Congress. The jiroponents of this 
argument are sincere, but I trust that by a 
more careful review of our history and a closer 



DEPARTMENT OF STATE BULLETIN 

study of our laws they will arrive at the con- 
clusion that the policy I advocate is not only 
in accord with our history but authorized by 
the Constitution and sanctioned by our law. 

Delegation to the Executive by the Congress 
of discretionary powers such as contained in 
the Trade Agreements Act is no present-day 
innovation. It has been practiced on numer- 
ous occasions in our history and has been held 
in our courts to be constitutional. 

The principle involved is the extension of an 
authority to the Executive, within defined 
limits, to exercise discretion in certain matters 
affecting foreign commerce. In 1794 the Con- 
gress first passed such a law. At that time 
the Government was young. It was then 5 
years old. In 1794 Washington was Presi- 
dent. He had presided over the Convention 
which drafted the Constitution. In his Cabi- 
net were Jefferson and Hamilton. Madison, 
Franklin, Washington, Jefferson, Hamilton, 
and their associates were sponsors for the 
young Government. They had brought it into 
being, and they were colleagues in starting it 
on its career. They certainly could be trusted 
to guide its legislative acts to conform to their 
concept of the powers and authorities which 
they themselves had prescribed to the Congress 
and to the Executive and had reduced to writ- 
ten form in the Constitution. Under those 
circumstances, with the approval of these 
Founding Fathers, the Congress passed the 
act in 1794 which delegated to the President 
authority to exercise discretion in a prescribed 
field in matters concerning foreign trade. 

Again in 1798, and later during the admin- 
istrations of Adams, of Jefferson, and of Mad- 
ison, the Congress time and again passed sim- 
ilar legislation — and has done it from time to 
time ever since. In our own age no less an 
authority than Chief Justice Taft of the Su- 
preme Court handed down, an opinion which 
sustains the contention that the delegation of 
authority, when properly defined, is entirely 
constitutional and within the authorized sphere 
of congressional action. 

So that if George Washington and the 
Founders of the Eepublic can be relied upon — 
and if the decision of the Supi'eme Court in 



FEBRUARY 17, 194 



181 



our own da}', speaking through the Chief Jus- 
tice, who had himself exercised the authority 
of President, is to be relied upon — the con- 
tention that the Trade Agreements Act is an 
unconstitutional delegation of power seems to 
be without foundation in history or in law. 

There is another view which has been ad- 
vanced in some quarters that these trade agree- 
ments should be submitted to the Senate for 
their advice and consent before they are pro- 
claimed. The argument in support of this is 
that the agreements fall within the constitu- 
tional classification of treaties and that as such 
they should be submitted to the Senate. The 
advocates of this point of view are also sin- 
cere, but their position appears to be untenable 
from the constitutional point of view. 

The negotiation of Executive agreements as 
distinguis'hed from treaties has been for a long 
time a part of our practice in the conduct of 
our foreign relations. Such agreements have 
been upheld as valid by the weight of court 
opinion. Another Chief Justice of the Su- 
preme Court, Mr. Charles Evans Hughes, 
speaking for the Court and discussing the 
powers of the Federal Government to effect an 
international settlement, has said that the 
United States has power to make agreements 
with other nations "through treaty, agreement 
of arbitration, or otherwise."' Since that de- 
cision the Supreme Court has stated (U. S. vs. 
Curtiss-Wright) that the President has in- 
herent authority to make such international 
agreements "as do not constitute treaties in 
the constitutional sense," without the necessity 
of submitting them to the Senate. 

The use of Executive agreements to carry 
out congressional policy is particularly appro- 
priate where questions of foreign trade are 
concerned. The Constitution itself provides 
that the Congress shall have power to regulate 
foreign commerce. The Constitution does not 
say that, regardless of the desires of Congress, 
one-third of the Senate shall have power to 
prevent regulation of foreign commerce, and 
yet that is what it would amount to if these 



trade agreements had to be classified as treaties 
and therefore had to be submitted to the Sen- 
ate for its approval before they became opera- 
tive. Treaties require a two-thirds vote of the 
Senate to secure approval. That means that 
one-third of the Senate can block approval. 
Consequently, under the theory that trade 
agreements must or should be submitted to the 
Senate, one-third of that one House could block 
the desire of both Houses of the Congress and 
of the Executive as expressed in the Trade 
Agreements Act. 

On this point our constitutional law is really 
quite clear. The Constitution gives to the 
Congress power to regulate foreign commerce, 
and the Congress must have the authority to 
determine and to adopt what it considers the 
most effective manner of regulation. The ad- 
vocates of the point of view requiring submis- 
sion to the Senate argue that there should be 
some control over the Executive in carrying 
out the instructions of the Congress. The fact 
is that the Congress retains control. The Con- 
gress delegates power to the President to act 
within limitations the Congress itself estab- 
lishes. Furthermore, the Congi'ess can, at any 
minute, bj' majority vote of both Houses, ex- 
ercise additional (control by abrogating the 
power granted, or by amending it, or by rede- 
fining it. So that there does continue that 
control which the advocates of ratification by 
the Senate contend for. Only that control lies, 
first, in directions given by Congress and, sec- 
ond, in the ever-present power of Congress to 
act by a majority vote of each House. Advo- 
cates of ratification by the Senate really rec- 
ommend in practice that Congress surrender 
its control to one-third of one House. 

We must remember that the trade agreements 
do not deal with political rights or adversely 
affect the sovereignty of the United States. 
Such matters may properly be reserved for 
treaties. Trade agreements are purely and 
simply instruments for increasing the foreign 
trade of this country and afford the best-kiiown 
medium for effecting that objective. 



182 



DEPARTMENT OF STATE BULLETIN 



THE BROADER PURPOSES OF THE TRADE-AGREEMENTS PROGRAM 

Address by Assistant Secretary Grady ' 



[Released to the press February 15] 

I am not going to present to you tonight an 
array of htutistics to prove the value to you 
of the trade-agreements program. Many of 
you know this from your everyday business 
experience. Moreover, if v?e look too closely 
at a great many individual statistical trees, we 
may fail to observe the height and depth of 
the forest. 

Those of you who are engaged in foreign- 
trade activities see the individual trees in your 
daily business — the opportunities for profit- 
able trade, the obstructions of excessive trade 
barriers and restrictions, the benefits of con- 
cessions obtained in trade agreements. You 
may find it of interest, therefore, to view the 
more complete picture, the way in which our 
trade agreements with foreign countries fit 
into the whole set-up of our foreign trade, our 
international commercial relations, and our 
national prosperity. Let me set forth for you 
some of these broader aspects. 

The immediate purpose of the trade-agree- 
ments program is the restoration and expan- 
sion of our foreign trade. That the program 
has already made recognizable progress in this 
direction has been shown by objective efforts 
to measure its results. Of course, there are 
many factors influencing the volume and value 
of our foreign trade, and it is difficult to iso- 
late the results due to trade agreements from 
those due to other factors. But when we find 
that our trade with countries with which trade 
agi-eements have been negotiated has been in- 
creasing, since those trade agreements have 
been in effect, about twice as fast as our trade 
with other countries, there is at least an indi- 
cation that the reduction of trade barriers and 
the promotion of the principle of equality of 
treatment, which constitute the essence of 



' Delivered at n dinner of the Foreign Traders As- 
sociation of Phlladelpiila, Inc., Plillndelphia, Pa., Feb- 
ruary 15, 1040, and broadcast over Station KYW. 



these agreements, are having the desired effect 
of encouraging more business. 

For the benefit of those who must have a 
figure or two, let me refer to the analysis pub- 
lished by the Department of Commerce on Jan- 
uary 20, according to which the increase in our 
exports to trade-agreement countries, between 
a pre-agreement and a post-agreement period, 
was about 60 percent as compared with a less 
than 30-percent increase in exports to other 
countries. For our imports, the corresponding 
figures are 22 percent and less than 11 percent. 

I am aware that some people who do not like 
the trade-agreements program claim that this is 
not a true and representative comparison, that 
if the trade were more closely analyzed the re- 
sults would be different. For their benefit and 
because of our own interest in an accurate ap- 
praisal of the program, other comparisons have 
been made. We find that our exports to Canada 
of those products on which Canada reduced 
duties by trade agreement with us increased 
faster under the agreement than our exports to 
Canada of other products. We find likewise, 
in examining the trade of a representative num- 
ber of countries with which we have trade 
agreements, that our percentage shares of the 
imports of most of these countries increased 
under the trade agreements. Both of these sta- 
tistical inquiries lead to results which support 
those of the first-mentioned comparison. 

We naturally tend to assume that an increase 
in our trade is beneficial. But, of course, from 
the national point of view our foreign trade is 
not an end in itself, but a means to several ends. 
So let us consider some of these ends. 

First of all, a healthy foreign trade is es- 
sential to our national prosperity. I know that 
I do not have to convince you on this point. 
There are always some people, however, some- 
times people of recognized ability and achieve- 
ment, who maintain that it is not necessary for 
this country to look for foreign markets for its 



FEBBITAEY 17, 1940 



183 



own products and even less necessary to import 
the products of other countries. This doctrine 
of self-sufficiency or economic isolation is how- 
ever rapidly losing support in the face of the 
evident facts. 

The United States is economically dependent 
on the world community to an important de- 
gree. The maintenance of our standards of 
living requires that we continue to be so de- 
pendent. This country could never hope to be 
entirely self-sufficient, and the cost of seek- 
ing self-sufficiency would seriously affect our 
national welfare. 

The world's resources are not evenly dis- 
tributed. Some of the most important raw 
materials needed by many countries are found 
in only a few. Some nations have more abun- 
dance of capital or more labor available than 
others. One country can export one type of 
i-aw material to better advantage than another. 
One country can produce certain types of manu- 
factured goods more economically than another. 
It is naturally to the advantage of every country 
to exchange the goods of which it has a surplus 
and which it can best produce for those goods 
which it lacks or can produce only at high cost. 
This is the simple and basic reason for trade, 
domestic or foreign. 

The relation of our foreign trade to our 
national prosperity is very close. In the years 
in which our exports and imports have been 
greatest, our production has also been high 
as have been our domestic employment and 
wage levels. The benefits of prosperous 
foreign trade pervade our whole economy. 

The expansion of foreign markets for Amer- 
ican products means increased production in 
the export industries and an outlet for surplus 
farm products. This, in turn, leads to in- 
creased employment, increased wages, and 
better farm prices. Thus the farmer and the 
worker who produce for export obtain a direct 
benefit from increased sales abroad. This in- 
creases their purchasing power in the home 
market of other domestic industries and other 
branches of American agriculture, with wide- 
spread benefit throughout the country. 



To be specific, let us look at the stake of 
Philadelphia and its surrounding district in 
foreign trade and the trade-agreements pro- 
gram. Philadelphia is an important trading 
center. Not only is it one of the largest cities 
in the United States, but it is also one of the 
country's most important ports, connected by 
its extensive railway and highway networks 
with a rich hinterland. One might almost use 
the volume of commerce passing through the 
port of Philadelphia as an index of the 
country's prosperity. 

The export products of the area served by 
Philadelphia include iron and steel products, 
electrical and industrial machinery, petroleum 
products, and fruits. These are all staple 
products, representative of a large part of the 
total United States exports. Also, the im- 
ports which enter the port of Philadelphia in- 
volve an important part of the area's business. 
They consist for the most part of essential raw 
materials for Pennsylvania's factories. As a 
matter of fact, it is estimated that in the State 
of Pennsylvania about 80,000 persons are em- 
ployed in factories which convert imported raw 
materials into finished articles for home con- 
sumption or for reexport, and that about 10,000 
more workers are employed in plants engaged 
in the secondary processing of some of the im- 
ported materials or in the use of imported raw 
materials and semimanufactures. 

The trade-agreements program has facili- 
tated exports of the Philadelphia region by ob- 
taining substantial concessions for its staple 
export products and by granting reductions in 
duty on many of the raw materials and semi- 
manufactures used in its industries. 

The increased volume of exports and imports 
and the increased activity resulting directly 
from this trade stimulate activity in other lines, 
even those only remotely connected with 
foreign trade. As examples, we can mention 
stevedoring, transportation, brokerage, insur- 
ance, banking, advertising, merchandising, 
communications, and so forth. The field is un- 
limited. The important thing is to keep the 
cliannel free and the flow steady. 



184 

Tlie reverse of this picture is seen when 
economic depression at home and abroad and 
the raising of tariflf barriers and other trade 
restrictions to excessive heights combine to 
restrict and reduce tlie flow of our trade. The 
decline in our national prosperity during the 
years after 1929 is a story that is all too well 
known. The causes of that decline were many, 
but one of the important factors accounting 
for the depth and length of this depression 
was the loss of our foreign trade. The work- 
ers who had been producing for export were 
thrown out of work and were unable to buy 
the products of other American industries. 
The surplus farm products which no longer 
had exj)ort markets were thrown back on the 
home market, and prices dropped to record 
lows. Every branch of American agriculture 
and industry felt the effects of a shrunken 
foreign trade. 

The restoration and expansion of a healthy 
and profitable flow of goods between the 
United States and foreign countries is es- 
sential for the welfare of our entire Nation. 
The trade-agreements program, by its action 
in bearing down upon the excessive restric- 
tions against our trade, sets in motion a whole 
series of transactions leading to increased 
business activity, increased employment, and 
increased consumer purchasing power — all of 
which mean prosperity. 

The policy and procedure followed in the 
trade-agreements program is based on the prop- 
osition that, given fair and orderly conditions 
and reasonable opportunity to trade, private 
initiative will rise to the task of organizing 
and carrying on this commerce with the rest 
of the world upon which we must rely for the 
maintenance of our high standards of living. 
The essential task faced in administering the 
Trade Agreements Act is to prouiote reason- 
able and nondiscrimiuatory treatment of our 
pi-oducts in foreign markets in return for 
judicious adjustments in our own tariff rates 
and guarantees of equal, or most-favored- 
iiation, treatment on our part. 

In carrying out this task there has been 
developed a valuable and effective contribution 



DEPARTMENT OF STATE BULLETIN 

to the solution of our perennial national head- 
ache — the tariff problem. Tariff revision and 
manipulation has been a frequently recurring 
and bitterly controversial element of our entire 
national history. Repeated efforts have been 
made to solve it through administrative tariff 
adjustment, on the basis of a policy and for- 
mula laid down by Congress, and in most cases 
with provision for reciprocal negotiation with 
foreign countries. 

People who do not like the trade-agreements 
program — mostly because they object to the 
moderate and carefully framed tariff adjust- 
ments which it involves — advance various al- 
ternatives or modifications. Usually they will 
be found to have been tried in our past his- 
tory and found wanting. The trade-agree- 
ments procedure has proven in practice to be 
fair and well balanced, and it luarks. 

The important features of this procedure 
are worth passing in brief review. First let 
me emphasize that full and fair opportunity 
is given to all interested persons to present 
their views in connection with any proposed 
trade-agreement negotiations. The same con- 
sideration is given to the statements and argu- 
ments of Joe Glutz, manager of the Fine and 
Dandy Suspender Manufacturing Company, 
as is given to requests of those who hire high- 
priced tariff lobbyists to present their case. 

The information and views presented in 
briefs and at public hearings held before the 
Committee for Reciprocity Information in 
connection with each agreement receive thor- 
ough analysis and study at the hands of the 
trained exjierts of the interdepai'tmental trade- 
agreements organization. This organization 
is composed of representatives from the Tariff 
Commission and from the Departments of 
State, Commerce, Agriculture, and the Treas- 
ury, who can draw on their own training and 
experience and on the vast resources of infor- 
mation and experience available to their re- 
spective agencies. These men sift the 
information available on each product under 
consideration and formulate the recommenda- 
tions which, when they have received the neces- 



FEBRUARY 17, 1940 



185 



sary official approval, form the basis for 
negotiations with foreign governments. 

In return for the carefully formulated and 
judiciously safeguarded tariff concessions 
granted to the other country, we are able to 
secure from the foreign government the valu- 
able concessions which make possible the ex- 
pansion of our export trade. 

This new type of tariff making by trade 
agreements avoids the evils of the old log- 
rolling tariff, the ineffectiveness of the reci- 
procity treaties requiring congressional ap- 
proval, and the defects of the impracticable 
cost-of-production formula. It has been pos- 
sible by this procedure to determine rates of 
import duty which are economically justified 
and to obtain in return improved treatment of 
our exports. The interests of all producers, 
great and small, of consumer's, importers, and 
exporters, are taken into account. 

The principle underlying the negotiation of 
all our trade agreements is the most-favored- 
nation principle, which requires that the 
United States and the other country with 
which it enters into a trade agreement shall 
accord to each other's trade treatment which 
is no less favorable than that accorded to any 
third country. The United States has con- 
sistently held that the only way to eliminate 
discrimination and preference is to grant the 
same treatment to all countries who do not 
discriminate against our trade. For this 
reason, the concessions granted in a trade 
agreement with one country are extended to 
the products of all other countries not found 
to be discriminating against us. Thus, even 
countries with which we do not have trade 
agreements may find it to their interest as well 
as to ours to accord us nondiscriminatory 
treatment. 

The application of the most -favored-nation 
principle to trade negotiations is one of the 
strongest forces at work in the world today for 
removing ill will engendered by economic 
nationalism. The rise of economic national- 
ism following the World War was accompanied 
by an alarming increase in trade discrimina- 



tions. Excessive and preferential tariffs, re- 
strictive quotas, exchange manipulations, and 
government-controlled monopolies of trade 
were strangling world commerce and creating 
friction between nations. This couiitry, by 
])ursuing a policy of nondiscriminatory treat- 
ment, has demonstrated to the world what can 
be done to increase trade between nations to 
the common advantage of all. It has been 
widely recognized that the principles embodied 
in the trade-agreements program offers the only 
sane approach to an orderly world economy, 
without which there can be no peace. 

You will probably want to know what rela- 
tion there can be between the peaceful objec- 
tives of the trade-agreements program and 
the current developments in Europe. The war 
does not by any means constitute a reason for 
scrapping the trade-agreements program. On 
the contrary, the program is the one hope for 
salvaging our trade from the chaotic condi- 
tions which come with war's aftermath. 

The war will undoubtedly have far-reaching 
effects on our national economy. The abnor- 
mal demand for certain types of goods, coupled 
with the gradual shrinkage of the markets for 
other types of goods, is bound to cause a dis- 
location of all branches of American industry 
and agriculture, even while the war is still 
going on. When it ends, the trade of the world 
will be in a state of chaos and confusion, and 
it will be necessary to find some sound basis 
for the reconstruction of orderly trade between 
nations. It will be necessary to find a way to 
reestablish friendly relations among all nations 
and to eliminate the causes of future commer- 
cial and economic conflict. It will be necessary 
to find some means by which the economic sys- 
tem can be adaj^ted to the new conditions of a 
new post-war era. 

The system of cooperation between nations 
by means of mutually advantageous trade 
agreements provides a means and an instru- 
ment for establishing our international eco- 
nomic relations on a sound footing, so that we 
may some day achieve a lasting structure of 
world prosperity and peace. 



Departmental Service 



[Released to the press February 16] 

The Secretary of State has issued the follow- 
ing departmental orders: 
Departmental Order No. 8Jfi, issued February 
16, IHO: 

The Honorable Breckinridge Long, Assistant 
Secretary of State, is hereby charged with the 
administration of the Department of State and 
the Foreign Service and with supervision of 
matters relating to personnel and management, 
appropriations of the Department and its sev- 
eral activities, consular affairs, passports, visas. 
Foreign Service buildings, international con- 
ferences, and such other duties as may be as- 
signed to him by the Secretary of State. 

Mr. Long is hereby designated a member and 
Chairman of each of the following : 

The Board of Foreign Service Per- 
sonnel 

The Board of Examiners for the For- 
eign Service 

The Foreign Service OflBcers' Training 
School Board 

This Order amends the provisions of all exist- 
ing Departmental Orders in conflict therewith. 



Departmental Order No. 838, issued February 
15, 191fi: 

Mr. Charles B. Hosmer, a Foreign Service 
Officer of Class II on detail in the Department, 
has been designated to serve as an Executive 
Assistant to Assistant Secretary of State, Mr. 
Long, effective February 16, 1940. Mr. Hosmer 
will perform such duties as may be assigned to 
him by Mr. Long. 

Departmental Order No. 839, issued February 
15, 1940: 

Mr. Fletcher Warren, a Foreign Service Of- 
ficer of Class IV on detail in the Department, 
has been designated to serve as an Executive 
Assistant to Assistant Secretary of State, Mr. 
Berle, effective February 16, 1940. Mr. Warren 
will perform such duties as may be assigned to 
him by Mr. Berle. 

Departmental Order No. 834, issued January 
23, 191,0: 

Mrs. Ella A. Logsdon has been appointed 
Chief of the Office of Fiscal and Budget Af- 
fairs. Mr. B. Leslie Vipond has been appointed 
Assistant Chief of the Office. The effective date 
of this order shall be January 23, 1940. 



Traffic in Anns, Tin-Plat e Scrap, etc. 



MONTHLY STATISTICS 



(Released to the press February 18) 

Note: The statistics of actual exports in these re- 
leases are believed to be substantially complete. It 
Is possible, however, that some shipments are not 
Included. If this proves to be the fact, statistics in 
regard to such shipments will be included In the 
cumulative flEures In later releases. 



Arms Export Licenses Issued 

The table printed below indicates the char- 
acter, value, and countries of destination of 
the arms, ammunition, and implements of war 
licensed for export by the Secretary of State 
during January 1940: 



FEBEUAKY 17, 1940 



187 



Country of destination 



Angola 

Argentina. 



Belgium. 
Bermuda 
Bolivia... 

Brazil 



British Ouiana 

British North Borneo 
Canada 



ChUe.. 
China. 



Colombia 

Costa Blca 

Cubs. - 

Curacao 

Dominican Republic 
Ecuador 

Egypt 

Finland 

France 



French Indochina. 



Guatemala. 

Haiti 

Honduras.. 

Hong Kong 
India 



V (2) 
I (5) 
HI (2) 

V (1) 
(2) 

VII (2) 
I (4) 

III (I) 

IV (2) 

V (2) 
(3) 

V (1) 
I (4) 

V (2) 
(3) 

VII (1) 
I (1) 

(4) 
IV (1) 

(2) 



IV (1) 
(2) 

V (1) 
(2) 
(3) 

VII <1) 
(2) 



V (1) 
(2) 
(3) 

IV (1) 



(3) 

V (2) 
(3) 

VII (1) 
IV (1) 
VII (I) 

V (2) 
(3) 

IV r2) 
I (4) 
IV (1) 
(2) 
VII (2) 
IV (1) 

V (2) 
I (4) 
I (4) 

III (1) 
(2) 

V (2) 
(3) 

I (4) 

IV (I) 
(2) 

I (4) 

(5) 

IV (I) 

V (2) 

m ('' 

rV (1) 

VII (2) 

V (I) 
I (4) 
IV (2) 

V (2) 

V (2) 
I (4) 
IV (1) 

(2) 

V (1) 
(2) 

IV (1) 



$435. 00 

2, 300. 00 

10.00 

20, 900. 00 

6, 833. 48 

16.000.00 

39.00 

371, 380. 00 

455.00 

2, 276. 00 

26, 178. 00 

20, 745. 00 

16.00 

64.60 

46, 384. 00 

950.00 

538. 00 

815.00 

2, 688. 00 

19, 276. 00 

14, 950. 00 

11,620.00 

14, 997. 00 

2, 600. 00 

2.43 

2, 339. 18 

330. 00 

8, 650. 38 

1, 480. 04 

129. 29 

45. 300. 00 

74, 464. 61 

188, 931. 60 

1, 749. 02 

4.60 

3, 500. 00 

34.00 

2, 900. 00 

39.60 

90, 000. 00 

108, 742. 67 

14,483.63 

587.00 

206.00 

35, 000. 00 

8, 500. 00 

435. 62 

4, 868. 00 

959. 70 

17.50 

629.28 

1,950.00 

7,000.00 

606.00 

158.00 

98.00 

2, 612. 00 

900.00 

17.00 

60.00 

169, 253. 00 

1,617,500.00 

17,164,091.70 

16, 237. 80 

6, 983, 273. 22 

56, 801, 199. 00 

61.00 

2,040.00 

398.00 

907, 600. 00 

200.90 

132.00 

47.60 

479.00 

l.TO. 00 

3, 060. 00 

7,000.00 

123.00 

86.00 

300.00 

1,600.00 

662.00 

230.00 

23.00 

20,600.00 

750.00 

48.00 



Country of destination 



$435. 00 
45, 043. 48 



3, 634. 00 
214, 165. 80 

44, 293. 00 



8, 950. 00 
606.00 



77.00 
169, 263. 00 

■81, 672, 301. 72 

2, 489. 00 

908, 359. 40 

3, 219. 00 

7, 000. 00 

509.00 

1,500.00 

22, 165. 00 

48.00 



Netherlands Indies. 



Norway. 
Panama. 
Peru 



Portugal. 



Sweden... 
Thailand. 



,$112.60 

88, 100. 00 

600. 00 

1, 200. 00 
112.50 

1,019.60 
10, 000. 00 

2, 185. 00 

47.50 

166. 00 

3, 950. 60 

44, 600. 00 

29.74 

3,200.00 

222, 250. 10 

11,384.00 

121.00 

7, 190. 00 

124, 325. 00 

203.00 

1, 600. 00 

2, 390. 00 
712,000.00 

9, 300. 00 

3,900.00 

800.00 

64.00 

4, 676. 00 

3,440.00 

61.80 

44.00 

12.00 

2. 400. 00 

356. 76 



V 


(2) 


600.00 


1 


(1) 


180.00 




(2) 


227. 50 




(4) 


71.00 


V 


(2) 


92,650.00 




(3) 


620,100.00 


IV 


(1) 


2, 891, 00 


V 


(2) 


2,900.00 




(3) 


156,000.00 


HI 


(2) 


5, 610. 00 




(2) 


82, 526. 00 


V 


(3) 


3,000.00 


I 


(1) 


73.10 




(4) 


9.13 


V 


(2) 


399.11 




(3) 


6,000.00 


VII 


(2) 


28, 468. 00 


IV 


(U 


433. 00 


1 


(1) 


38.84 




(4) 


32 93 


IV 


(1) 


810.00 




(2) 


47.00 


V 


(1) 


33,000.00 




(2) 


7, 000. 00 




(3) 


7, 000. 00 


VII 


(1) 


361.94 




(2) 


11,759.40 



i 368, 499. 84 

203.00 

3, 990. 00 
721, 300. 00 

4, 700. 00 



600.00 

478.50 

612,650.00 

161, 791. 00 

88.136.00 
3, 000. 00 

34, 949. 34 

433.00 



86, 096, 776. 90 



During the montk of January, 316 aiins 
fxport licenses were issued. 

Arms Exported 

The table printed below indicates the char- 
iicter, value, and countries of destination of 
the arms, ammunition, and implements of war 
e.\]Jorted during January 1940 under export 
licenses issued by the Secretary of State: 



188 



DEPARTMENT OF STATE BULLETIN 



Country of destination 



Argentina. 
Australia.. 



Belgium 
Bermuda 

BoHtIb.. 

BrazU... 



British Honduras.. 
Canada 



CblnB 

Colombia.. 



Cursfao 

Ecuador 

El Salvador.. 
Finland 

France 

Qrcat Britain 



Quatemals 

Haiti 

Honduras. 

India 

Jamaica... 

Japan 

Latvia 

Mauritius. 

Mexico 



Category 


V 


(2) 




(3) 


III 


ID 


IV 


m 


V 


(1) 




Vi) 




13) 


I 


f4) 


1 


(1) 




(4) 


V 


12) 




13) 


1 


(4) 


111 


(1) 


IV 


(1) 




(2) 


V 


(1) 




12) 




(3) 


VII 


(2) 


IV 


II) 




(2) 


I 


111 




(4) 


in 


(I) 


iV 


(1) 




(2) 


V 


(1) 




(2) 




(3) 


VII 


(1) 




^21 


1 


(4) 


IV 


(1) 




(2) 


V 


(1) 




(2) 




(3) 


IV 


(1) 


V 


(1) 




^3) 


1 


(4) 


IV 


(2) 


V 


(U 




(2) 




(3) 


V 


(2) 




(3) 


VTI 


(U 


1 


(4) 


IV 


(1) 




(2) 


V 


(2) 




(3) 


V 


(I) 




(3) 


I 


(4) 


IV 


(1) 




(2) 


1 


(4) 


I 


(2) 




(4) 


III 


(1) 


V 


(3) 


III 


1) 


V 


(2) 




(3) 


1 


(4) 




<!•) 


III 


(U 


IV 


fl) 


V 


(2) 




13) 


1 


(1) 




(4) 


VII 


(2) 


I 


(*) 


IV 


(2) 




(1) 


VII 


(2) 


1 


(4) 


IV 


(2) 


IV 


n) 


V 


(■i) 


V 


CM 


1 


(i) 




H) 




") 




(2) 




(3) 


Vll 


(1) 



$3, 594. 48 

134,008.00 

3, 263, 576. 00 

440.00 

4,500.00 

434.00 

52, 356. 00 

30.79 

48.00 

16.00 

561. 69 

9. 600.00 

3, 486. 00 

173, 880. 00 

1,257.00 

15,971.00 

3, 400. 00 

24,893.00 

4, 468. 76 

2.00 

15.00 

18.00 

1,078.86 

350.68 

402,411.00 

1,771.76 

13.56 

73. 026. 00 

6, 037. 50 

42, 693. 00 

1,737.87 

6, 264. 60 

48.00 

1, 491. 00 

409.00 

3,500.00 

34.00 

7, 279. 00 

39.60 

20,000.00 

89, 141. 00 

10.00 

625.00 

77, 600. 00 

4,616.00 

2,500.00 

14,675.00 

700.00 

640.00 

84.00 

17.60 

2, 804. 00 

4,395.00 

9,000.00 

1,600.00 

7,000.00 

107.00 

166.00 

1, 745. 00 

81.00 

47, 164. 00 

50,368.00 

611,079.00 

65, 649. 00 

8, 429, 107. 00 

828, 925. 00 

2,431,740.00 

76.00 

200.90 

3, 690, 200. 00 

132. 00 

372.111.00 

479.00 

37.00 

12.00 

6.00 

123.00 

86.00 

50.000.00 

260.00 

880.00 

81.00 

271.00 

1,661.00 

3, 706. 00 

251.45 

200.28 

47, ,500. 00 

550.00 

000.00 

6, 985. 76 



Country of destination 



30.79 
64.00 



85, 250. 00 
16,015.00 
16, 300. 60 

8, 500. 00 

2, 018. 00 

81.00 

774, 260. 00 

11,689,772.00 
4,063,198.90 



49.00 
6.00 



911.00 

271.00 

1,651.00 

3, 706. 00 

451. 73 



Netherlands 

Netherlands Indies 

New Ouinea, Territory of 
New Zealand- 

Norway 

Panama 

Peru 

Portugal 

Surinam 

Sweden _ 

ThMland 



Trinidad. 
Turkey.. - 



Union of Soviet Socialist Re- 
publics. 
Venezuela 



Yugoslavia . 

Grand total. 



I (2) 

V (2) 
(3) 

I (2) 

(4) 

IV (2) 

V (2) 

V (2) 

V (2) 
(3) 

I (4) 
rv (2) 
I (2) 

vn (1) 

IV (1) 

V (1) 

(2) 

I (1) 

V (2) 
VII (1) 

III (1) 

V (2) 

I (1) 

(4) 

IV (1) 

V (2) 
(3) 

IV (2) 

V (2) 
(3) 

I (2) 
(5) 

III (1) 

IV (1) 
(2) 

V (2) 
(3) 

I (4) 
IV (2) 

V (3) 

IV (1) 
C2) 

V (2) 
(3) 

VII (1) 
(2) 

V (2) 



$13, 787. 00 

36, 580. 00 

34, 692. 50 

1, 868. 00 

639. 09 

416. 67 

229.00 

1, 600. 00 
1,971.16 

2, 640. 00 

16.20 

16.00 

3, 900. 00 

1, 457. 60 

64.00 

2, 700. 00 
4, 825. 00 

51.80 

33.00 

193.80 

902,250.00 

65, 240. 96 

17.66 

1.93 

3,028.00 

2,637.00 

37, 120. 00 

18.00 

2,800.00 

3,000.00 

146, 550. 00 

158, 750. 00 

904,819.00 

14, 203. 00 

1, 300. 00 

3, 277. 10 
23, 448. 00 

39.00 

243.00 

45, 192. 00 

531.00 
47.00 
4, 980. 00 
6,000.00 
3, 723. 23 
8, 372. 40 
2,210.00 



3, 161. 76 

1, 500. 00 
4,611.16 

31.20 
5, 367. 60 
7, 589. 00 

84.80 



282.00 
46, 192. 00 



23, 653. 63 
2, 210. 00 



Arms Import Licenses Issued 

The table printed below indicates the char- 
acter, value, and countries of origin of the 
arms, ammunition, and implements of war 
licensed for import by the Secretary of State 
during the month of January 1940: 



Country of origin 


Category 


Value 


Total 




V (2) 
I (1) 
I (1) 

(2) 

V (2) 
vn (2) 

V (3) 

\ il] 

V (3) 


$175. 00 

126.00 

100.00 

330.00 

700.00 

125.00 

2,000.00 

10,000.00 

180.00 

I, 600. 00 

90.00 

160.00 

750.00 

1, 500. 00 














I 1, 255. 00 




10, 000. 00 






1,600.00 












Trinidad 


1,600.00 




Grandltotal 




17, 726. 00 











FEBRUARY 17, 194 



189 



During the month of January, 16 arms 
import licenses were issued. 

Categories of Arms, Ammunition, and 
Implements of War 

The categories of arms, ammunition, and 
implements of war in the appropriate column 
of the tables printed above are the categories 
into whicli those articles were divided in the 
President's proclamation of May 1, 1937, 
enumerating the articles wliich would be con- 
sidered as arms, ammunition, and implements 
of war for the purposes of section 5 of the joint 
resolution of May 1, 1937 [see pages 119-120 
of the Bulletin of January 27, 1940 (Vol. II, 
No. 81)]. 

Special Statistics in Regard to Arms Exports 
TO Cuba 

In compliance with article II of the conven- 
tion between the United States and Cuba to 
suppress smuggling, signed at Habana, March 
11, 1926, which reads in part as follows: 

"The High Contracting Parties agree that 
clearance of shipments of merchandise by 
water, air, or land, from any of the ports of 
either country to a port of entry of the other 
country, shall be denied when such shipment 
comprises articles the importation of which is 
prohibited or restricted in the country to which 
such shipment is destined, unless in this last 
case there has been a compliance with the re- 
quisites demanded by the laws of both 
countries." 

and in compliance with the laws of Cuba which 
restrict the importation of arms, ammunition, 
and implements of war of all kinds by re- 
quiring an import permit for each shipment, 
export licenses for shipments of arms, ammuni- 
tion, and implements of war to Cuba are re- 
quired for the articles enumerated below in 
addition to the articles enumerated in the 
President's proclamation of May 1, 1937 : 

(1) Arms and small arms using ammunition 
of caliber .22 or less, other than those classed 
as toys. 

(2) Spare parts of arms and small arms of 
all kinds and calibers, other than those classed 
as toys, and of guns and machine guns. 



(3) Ammunition for the arms and small 
arms under (1) above. 

(4) Sabers, swords, and military machetes 
with cross-guard hilts. 

(5) Explosives as follows: explosive pow- 
ders of all kinds for all purposes; nitrocellu- 
lose having a nitrogen content of 12 percent 
or less; diphenylamine ; dynamite of all kinds; 
nitroglycerine; alkaline nitrates (ammonium, 
potassium, and sodium nitrate); nitric acid; 
nitrobenzene (essence or oil of mirbane) ; sul- 
phur; sulphuric acid; chlorate of potash; and 
acetones. 

(6) Tear gas (CeHsCOCH.Cl) and other 
similar nontoxic gases and apparatus designed 
for the storage or projection of such gases. 

The table printed below indicates, in respect 
to licenses authorizing the exportation to Cuba 
of the articles and commodities listed in the 
preceding paragraph issued by the Secretary 
of State during January 1940, the number of 
licenses and the value of the articles and com- 
modities described in the licenses: 



Number of licenses 


Section 


Value 


Total 


41 


(1). 
(2)- 
(3).. 
(5). 




$1, 092. 55 

75.34 

10. 804. .W 

a", 916. 14 








\ $34,888.53 






1 









The table printed below indicates the value 
of the articles and commodities listed above 
exported to Cuba during January 1940 under 
licenses issued by the Secretary of State: 



Section 


Value 


Total 


(I) 


$969.60 

68.16 

11, 663. 00 

21,934.12 




(2) 




(3) ... 




(5) 









Tin-Platb Scr.U' 

The table printed below indicates the num- 
ber of licenses issued during ' January 1940 
authorizing the exportation of tin-plate scrap 
under the provisions of the act approved Feb- 
ruary 15, 1936, and the regulations issued 
pursuant thereto, together with the number of 
tons authorized to be exported and the value 
thereof: 



190 



DEPARTMENT OF STATE BULLETIN 



Country of destination 


Number oJ 
licenses 
Issued 


Quantity 
in long 
tons 


Total value 




24 


1,967 


$38,063.13 









Helium 

The table printed below gives the essential 
information in regard to the licenses issued 
during Januai^ 1940 authorizing the exporta- 



tion of helium gas under the provisions of the 
act approved on September 1, 1937, and the 
regulations issued pursuant tJhiereto: 



Applicant for license 


Purchaser in for- 
eign country 


Country 
of desti- 
nation 


Quan- 
tity in 
cubic 
feet 


Total 
value 


The Ohio Chemical & 
Mfg. Co. 


Oxygen Co. of 
Canada, Ltd. 


Canada... 


1,302 


$54.00 



Treaty Information 



Compiled by the Treaty Division 



ARBITRATION AND JUDICIAL 
SETTLEMENT 

Permanent Court of International Justice 

There are quoted below the texts, in transla- 
tion, of letters received by the Secretary Gen- 
eral of the League of Nations from the Nor- 
wegian and Swedish Governments on Decem- 
ber 19 and 26, 1939, respectively, regarding the 
declarations made by the Governments of Aus- 
tralia, France. Great Britain, India. New Zea- 
land, and the Union of South Africa concern- 
ing the acceptances by these Governments of 
the Optional Clause of the Statute of the Per- 
manent Court of International Justice : 
Noricai/ 

"In various communications, dated Septem- 
ber 13th, 19th and 20th and October 6th, 1939 
(C. L. 141, 143, 147, 148 and 158.1939. V.), you 
were good enough to inform me that the Gov- 
ernments of Australia, the United Kingdom. 
India, New Zealand and South Africa have 
notified you that they will not regard their ac- 
ceptance of the Optional Clause of the Statute 
of the Permanent Court of International Jus- 
tice as covering disputes arising out of events 
occurring during the present hostilities. 



''Li a further communication, dated Septem- 
ber 13th, 1939 (C. L. 142.1939.V.), you in- 
formed me that the French Govenmient has, 
for its part, declared that it considers that its 
acceptance of the said clause cannot hencefor- 
ward be operative in regard to disputes relat- 
ing to events occurring during the course of 
the present war. 

"While taking note of these communications, 
I have the honour to inform you that the Nor- 
wegian Government feels obliged to make res- 
ervations as to the legal effect of the above- 
mentioned acts of denunciation, more particu- 
larly as regards disputes not connected with 
the war. The Royal Government would ven- 
ture, furthermore, to draw attention to the 
fact that, in virtue of Article 36 of the Statute 
and the declarations relating thereto, it I'ests 
with the Court itself to decide questions as to 
its own jurisdiction and, should the case arise, 
to pronounce upon the validity and, if neces- 
sary, the scope of the acts of denunciation re- 
ferred to." 

Sweden 

"Li various communications, dated Septem- 
ber 13th, 19th and 20th and October 6th, 1939 
(C. L. 141, 143, 147, 148 and 158.1939.V.), 
you were good enough to inform me that the 



FEBBUABY 17, 1940 



191 



Governments of Australia, the United King- 
dom, India, New Zealand and South Africa 
have notified you that they will not regard 
their acceptance of the Optional Clause of the 
Statute of the Permanent Court of Interna- 
tional Justice as covering disputes arising out 
of events occurring during the present hostili- 
ties. In a further communication, dated Sep- 
tember 13th, 1939 (C. L. 142.1939.V.), you in- 
formed me that the French Government has, 
for its part, declared that it considers that its 
acceptance of the said clause cannot hencefor- 
ward be operative in regard to disputes relat- 
ing to events occurring during the course of the 
present war. In a Circular letter dated Sep- 
tember 13th, 1939, (C. L. 144.1939.V.), you also 
informed [me] that the Australian Government 
notified you that it will not regard its accession 
to the General Act as covering or relating to 
any disputes arising out of events occurring 
during the present crisis. 

"While taking note of these communications, 
I have the honour to inform you that the 
Swedish Government feels obliged to make 
reservations as to the legal effect of the above- 
mentioned acts of denunciation, more particu- 
larly as regards disputes not connected with 
the war. The Royal Govermnent would ven- 
ture, furthermore, to draw attention to the 
fact that, in virtue of Article 36 of the Statute 
and the declarations relating thereto, it rests 
with the Court itself to decide questions as to 
its own jurisdiction and, should the case arise, 
to pronounce upon the validity and, if neces- 
sary, the scope of the acts of denunciation re- 
ferred to." 

General Act for the Pacific Settlement of 
I International Disputes 

In regard to the declaration made by Aus- 
tralia when adhering to the General Act for 
the Pacific Settlement of International Dis- 
putes the Secretary General of the League of 
Nations states in a circular letter dated Janu- 
ary 17, 1940, that the Minister for Foreign 
Affairs of Sweden has informed him that 
while taking note of the Australian Govern- 



ment's communication, the Swedish Govern- 
ment feels obliged to make reservations as to 
the legal effect of the "denunciation" of the 
General Act, more particularly as regards dis- 
putes not connected with the war. 

COMMERCE 

Provisional Commercial Agreement With 
Chile (Executive Agreement Series No. 
119) 

The Department of State has been informed 
by the American Embassy at Santiago that the 
Chilean Goverimient has taken the necessary 
steps to bring into definitive force as of Jan- 
uary 5, 1940, the provisional commercial agree- 
ment between the United States and Chile 
effected by notes exchanged in Santiago on 
January 6 and February 1, 1938. 

This agreement continues in effect the provi- 
sions which have regulated commercial relations 
between the United States and Chile in 
recent years on an unconditional most-favored- 
nation basis, pending the conclusion of a more 
comprehensive agreement or treaty. 

The provisional agreement, which does not 
include tariff concessions on individual com- 
modities, was published by the Department as 
Executive Agreement Series No. 119. 

LABOR 

Convention Fixing the Minimum Age for 
the Admission of Children to Employment 
at Sea (Revised 1936) 

Iraq 

According to a circular letter from the 
League of Nations dated January 17, 1940, the 
instrument of ratification by Iraq of the Con- 
vention Fixing the Minimum Age for the Ad- 
mission of Children to Emploj'ment at Sea 
(revised 1936), adopted by the International 
Labor Conference at its twenty-second session 
(Geneva, October 22-24, 1936), was registered 
with the Secretariat on December 30, 1939. 
According to information received from the 
League of Nations the following countries have 



192 

ratified this convention : Belgium, Brazil, Iraq, 
Norway, Sweden, and the United States of 
America. 

Convention Concerning the Use of White 
Lead in Painting (1921) 

Nethei'lands 

According to a circular letter from the 
League of Nations dated January 5, 1940, the 
instrument of ratification by the Netherlands 
of the Convention Concerning the Use of 
White Lead in Painting, adopted by the Inter- 
national Labor Conference at its third session 
(Geneva, October 25-November 19, 1921), was 
registered with the Secretariat on December 
15, 1939. 

Convention Concerning Night Work in 
Bakeries 

Sweden 

According to a circular letter from the 
League of Nations dated January 23, 1940, the 
instrument of ratification by Sweden of the 
Convention Concerning Night Work in Bak- 
eries, adopted by the International Labor Con- 
ference at its seventh session (Geneva, May 19- 
June 10, 1925), was registered with the Sec- 
retariat on January 5, 1940. 

According to information received from the 
League of Nations the following countries have 
ratified tiie convention: Bulgaria, Chile, Co- 
lombia, Cuba, Estonia, Finland, Ireland, Lux- 
emburg, Nicaragiu\, Spain, Sweden, and Uru- 

TELECOMMUNICATIONS 

North American Regional Broadcasting 
Agreement 

The American Embassy at Mexico City has 
reported to the Department of State that tlie 



DEPARTMENT OF STATE BULLETIN 

decree which gave to the North American Re- 
gional Broadcasting Agreement the approval 
of the Government of Mexico was published in 
the Diario Oficial of February 15, 1940-, and 
that no reservations have been made by Mexico. 
It is added that it was expected that the Gov- 
ernment of Cuba, as the depository Govern- 
ment, would be notified by telegi-aph on Feb- 
ruary 16, 1940. 

The North American Regional Broadcasting 
Agreement was signed at Habana, Cuba, at the 
conclusion of the First Inter-American Radio 
Conference on December 13, 1937. It was 
signed by i-epresentatives of Canada, Cuba, the 
Dominican Republic, Haiti, Mexico, and the 
United States. 

The agreement was not to become effective 
until ratified by Canada, Cuba, Mexico, and 
the United States. The ratification by Mexico 
is the last required to make the agreement ef- 
fective and makes possible the necessary 
engineering measures for making the North" 
American Regional Broadcasting Agreement 
operative. 



Publications 



Department of State 

Diplomatic List, February 1940. Publication 1429. 
ii, 83 pp. Sub.scription, $1 a year ; islngle copy, 10^. 

Interchange of Publications: Convention between the 
United States of America and Other American Re- 
publics. — Signed at Buenos Aires December 23, 1936; 
proclaimed by the President November 15, 1939. 
Treaty Series No. 954. 18 pp. 50. 



For >alc by the Suporlntendent of Documents, Wasbington, D. C. — Price 10 cents Subscription price, $2.75 a year 

PUBLISHED WEEKLY WITH THH APPEOVAL OP THH DIBECTOR OP THE EUKEAD OF THE BDDGET 



,,.<M-<-^ 



THE DEPARTMENT OF STATE 

ULLETIN 




FEBRUARY 24, 1940 
Vol. II: No. j>5 — Publication 14^1 




Qontents 

Europe : 

Export of petroleum products to tlie Soviet Union : Let- p^ge 
ter from the Secretary of State to Kepresentative 

Frank E. Hook I95 

Censorship of air mails at Bermuda 196 

Detention by belligerents of American vessels for exami- 
nation of papers or cargoes igg 

Estonia : Anniversary of indeiaendence 198 

The American Republics : 

Replies to protest of the twenty-one American republics 

on violation of the neutrality zone 199 

Supplementary Extradition Treaty with Guatemala . . 205 
Publications : 
Publication of Foreign Relations of the United States: 

The Lansing Papers, 19H-1920, Volume I 205 

Commercial Policy: 
Are Tariff Walls Blockading America?: Address by 

Assistant Secretary Gradj' 2O6 

The Trade-Agi-eements Program from the Point of View 
of the College Student : Address by Wallace McClure . 207 
General: 

Immigration visa statistics 214 

Foreign Service of the United States : 

Foreign Service examination 2I8 

Personnel changes 218 



..TENDEHT OF OOCu-, 

MAR 12 1940 



Treaty Information : 
Arbitration and Judicial Settlement: page 
General Act for the Pacific Settlement of Interna- 
tional Disputes 219 

International Law: 
Convention Defining the Kights and Duties of States 

Treaty Series No 881) 219 

Education : 
Convention Concerning Facilities for Educational and 

Publicity Films 219 

Extradition : 

Supplementary Extradition Treaty with Guatemala . 220 
Opium and Other Dangerous Drugs : 
Convention for the Suppression of the Illicit Traffic 
in Dangerous Drugs, and Protocol of Signature . . 220 
Customs : 

Convention for the Repression of Smuggling 220 

Postal: 

Universal Postal Convention, 1939 220 

Universal Postal Convention, 1934 220 

Telecommunications : 
International Telecommunication Convention (Treaty 
Series No. 867) 221 



Europe 

EXPORT OF PETROLEUM PRODUCTS TO THE SOVIET UNION 
Letter from the Secretary of State to Representative Frank E. Hook 



[Released to the press February 20] 

The following letter from the Secretarj- of 
State to tlie Honorable Frank E. Hook, House 
of Representatives, was made public at the 
Capitol on February 20: 

"February 19, 1940. 
"Mt Dear Mr. Hook : 

"I acknowledge the receipt of your letter of 
February 10, 1940,^ in regard to the export of 
petroleum products from the United States to 
the Union of Soviet Socialist Republics. 

"According to available records, there were 
no exports of oil to the country in question dur- 
ing 1939, other than a nominal amount of lubri- 
cating oils valued at $94. There were no ex- 
ports of aviation gasoline to the U. S. S. R. 
during 1939 or during January 1940, with the 
exception of two barrels for experimental pur- 
poses. Exports of regular gasoline during 1939 
amounted to 883,530 barrels, all of which went 
to Siberia and were exported during the months 
of September, October and November. Heavy 
shipments of gasoline to Siberia during the 
autumn are not unusual. There were no exports 
of gasoline to the Soviet Union during Decem- 
ber 1939, although approximately 75,000 bar- 
rels were exported to Eastern Siberia during 
January 1940. 



"There is no existing legislation which au- 
thorizes the prohibition of the export of petro- 
leum products to the U. S. S. R. or to any other 
country. Before such exports could be pro- 
hibited, new legislation would be required. 
Furthermore, the mere severance of diplomatic 
relations with the Soviet Union would not pre- 
vent the sale and export of petroleum products 
to that country. 

"I may point out, however, that the Depart- 
ment has taken steps to discourage the further 
delivery of plans, plants, manufacturing rights, 
or technical information required for the pro- 
duction of high quality aviation gasoline to 
countries the armed forces of which are en- 
gaged in the unprovoked bombing or machine- 
gunning of civilian populations from the air. 
This policy was announced by the Department 
in a statement issued to the press on December 
20, 1939,^ a copy of which is enclosed. 

"I am enclosing, for your further informa- 
tion, a copy of the press release issued by the 
Department on December 15, 1939.' 
"Sincerely yours, 

CoRDEix Hull" 



'Not printed. 

212699 — 40 



' See the Bulletw of December 23, 1939 (Vol. I, No. 
26), p. 714. 

' See the Bulletin of December 16, 1939 (Vol. I, No. 
25), p. 685. 

195 



196 



DEPARTMENT OF STATE BULLETIN 

CENSORSHIP OF AIR MAILS AT BERMUDA 



[Released to the press February 23] 

The censorship of air mails at Bermuda was 
commenced on January 18. The consul at Ber- 
muda immediately telegraphed the Department 
stating that the censor at Bermuda had removed 
for purposes of censorship all sacks of through- 
hound mail for Europe from the American Clip- 
ix>r plane en route to Lisbon, though bags for 
England and France were not to be examined 
at Bermuda. 

Before tlic mail was actually removed the 
traffic representative for Pan American Airways 
and the captain of the ])lane communicated with 
tiie consul at Bermuda. The consul recom- 
mended tliat prior to permitting mail to be taken 
off they lodge a written protest, which they did, 
and that no assistance in unloading be lent to 
the British authorities. At the same time the 
consul orally protested to the chief censor and 



on the next day addressed a formal note to the 
Colonial Secretary. Both the oral and the .writ- 
ten protests were made on the consul's own 
authority and not by instructions from the 
Department. 

The Department also received a telegram 
from President Trippe of Pan American Air- 
ways on January 19, the day following this act 
of censorship. No mention is anywhere made 
either in the telegram from Mr. Trippe or in 
our reports from the American consul that any 
force was used or threatened in comiection with 
this removal of mails from the plane. Both the 
captain of the plane and the Pan American 
representative were in communication with the 
consul and had every opportunity to mention 
any use of force or threat of force by the British 
authorities, as did Mr. Trippe in his telegram to 
the Department. 



■f -f -f -f -f ■♦■ ■♦■ 



DETENTION BY BELLIGERENTS OF AMERICAN VESSELS FOR 
EXAMINATION OF PAPERS OR CARGOES 



[Released to the press February 24] 

Following is a list of American vessels in 
addition to the tabulation issued on January 8, 
1940, showing the Ajnerican vessels which have 



been reported to the Department of State as 
liaving been detained by belligerents since Sep- 
tember 1, 1939, for examination of papers or 
cargo : 



Name of vessel 



Owner or operator 



Western Queen.. 
Tripp 



President Adams. 



Manhattan . 



Lykes Bros. S. S. Co.. 
Lykes Bros. S. S. Co. 



American President 
Lines. 



United States Lines. 



Mixed, carbon 
black, oils, cop- 
per, lead, man- 
ganese ore. 



M ixed, fibre, hemp, 
tea, silk, tin, 
rubber, coflfee, 
oU. 



British authorities, Jan. 9, 1940, 
at Gibraltar. 

British authorities, Jan. 11, 1940, 
at Gibraltar. Destination Gen- 
oa. Proceeded on holdback 
guaranty. 2 items seized, 7 
detained for guaranties, 2 for 
fuller inquiries. 

British authorities, Dec. 29, 1939, 
at Port Said. Destination 
Alexandria, Genoa, New York. 
Suspect cargo discharged at 
Alexandria. 1 item seized, 18 
items detained for guaranties. 

British authorities, Jan. 17, 1940, 
at Gibraltar. 



After several 

hours. 
Jan. 13, 1940. 



After few 
hours. 



FEBRUARY 24, 194 



197 



Name of vessel 



Owner or operator 



Narbo- 



Excambion. 



Washington, 



President Van 
Buren. 



Nishmaha 

Examelia 

Excellency 

Cold Harbour 

Sarcoxic 

Exochorda 

Washington... 
Jomar 

Exminster 

Manhattan 



Manhattan. 



Waban. 



Exford. 



Lykes Bros. S. S. Co. 



American Export Lines. 



United States Lines 



American President 
Lines. 



Lykes Bros. S. S. Co... 
American Export Lines. 
American Export Lines. 

U. S. Maritime Com- 
mission (United 
States Lines, char- 
terer) . 

U. S. Maritime Com- 
mission (United 
States Lines, char- 
terer). 

American Export Lines. 

United States Lines 



Tampa Interocean 
S. S. Co. (Chilean 
Nitrate Sales Corp., 
charterer). 

American Export Lines. 

United States Lines 



United States Lines. 



Lykes Bros. S. S. Co. 



American Export Lines, 



Mixed, cotton, 
lead, rosin. 



Mixed, 170 items. 
Glycerine oil, 
sugar, cotton, 
jute, rubber, 
copper. 

Mixed, 160 items, 
coffee, cocoa, 
lard, oils, cas- 
ings, wax. 

Mixed, oil, cotton, 
silk, tin, rubber. 



1,380 tons cork- 
wood. 



Mixed, 90 items. 
Cotton, bean oil, 
lead. 



Mixed, 90 items, 
oil, aluminum, 
lead, tin plate, 
steel, etc. 



British authorities, Jan. 13, 1940, 
at Gibraltar. Destination Italy, 
Yugoslavia, Greece. Vessel 
proceeded on holdback guaran- 
ty. 2 items seized, 23 subject 
to guaranty, 27 released. 

British authorities, Jan. 17, 1940, 
at Gibraltar. 470 sacks mail 
seized — 54 German, 80 Italian, 
336 ordinary German. Cargo 
released on Black Diamond 
guaranty. Destination Genoa. 

British authorities, Jan. 20, 1940, 
at Gibraltar. Destination Gen- 
oa. Released on holdback 
guaranty. 

British authorities, Jan. 10, 1940, 
at Port Said. Destination 
Genoa, New York. Vessel dis- 
charged items of suspect cargo 
at Alexandria and proceeded 
on voyage. 3 items detained 
subject to guaranties. 

British authorities, Jan. 21, 1940, 
at Gibraltar. 

British authorities, Jan. 20, 1940, 
at Gibraltar. 

British authorities, Jan. 22, 1940, 
at Gibraltar. 

British authorities, Jan. 27, 1940, 
at Gibraltar. Destination Lis- 
bon to Odessa. 

British authorities, Jan. 28, 1940, 
at Gibraltar. 



British authorities, Jan. 29, 1940, 

at Gibraltar. 
British authorities, Jan. 31, 1940, 

at Gibraltar. 
British authorities, Jan. 31, 1940, 

at Gibraltar. 



British authorities, Feb. 1, 1940, 
at Gibraltar. 

French authorities, Feb. 2, 1940. 
Stopped by French patrol ves- 
sel cp 14 about 25 miles south- 
east Cape St. Vincent and 
ordered to proceed to Gibraltar 
for examination. 

British authorities, Feb. 3, 1940, 
at Gibraltar. 390 sacks 
German mail seized, but Ameri- 
can diplomatic mail pouches 
were not disturbed. 

British authorities, Jan. 28, 1940, 
at Gibraltar. Destination 
Italy and Greece. Vessel pro- 
ceeded on holdback guaranty. 
1 item seized, 34 detained sub- 
ject to guaranty. 

British authorities, Feb. 5, 1940, 
at Gibraltar. 



Jan. 14, 1940. 



Jan. 23, 1940. 



After several 
hours. 



Jan. 22, 1940. 
Jan. 31, 1940. 
Jan. 23, 1940. 
Jan. 30, 1940 



After several 
hours. 



Feb. 1, 1940. 

After several 

hours. 
Feb. 1, 1940. 



Feb. 9, 1940, 



Feb. 4, 1940. 



Feb. 13, 1940. 



198 



DEPABTMENT OF STATE BULLETIN 



Name of vessel 



Scotteburg .. 
West Chatala 

Manhattan.. 
Exermont 



Owner or operator 



Lykes Bros. S. S. Co. 
Lykes Bros. S. S. Co. 



United States Lines 

American Export Lines. 



Mixed, 90 items, 
rice, cotton as- 
phalt, coffee, 
wax, etc. 



British authorities, Feb. 8, 1940, 

at Gibraltar. 
British authorities, Feb. 10, 1940, 

at Gibraltar. 



British authorities, Feb. 14, 1940, 

at Gibraltar. 
British authorities, Feb. 14, 1940, 

at Gibraltar. 



Feb. 9, 1940. 

After several 
hours. 



After several 

hours. 
Feb. 16, 1940. 



(Released to tbe press February 24) 

A total of 108 American vessels have been 
reported to the Department of State as having 
been detained by belligerents between Septem- 
ber 1, 1939, and February 15, 1940, for exami- 
nation of papers or cargo. 

The following tables give data concerning the 
average length of detentions: 

Detentions of Amebioan Ships bt Nationautt 

By British authorities 90 

By French authorities 14 

By German authorities 4 

Total 108 



Dm-ENTioNs OF Amfjsican Ships by Belliqekents 



Detentions of American Ships at Gibraltar 



September 

October 

November 

December 

January 

February (H month) 

Total. 



108 



Z>air< 
6.2 
12.2 
11.3 
7.6 
4.9 
3.5 



Month 


Number 
of vessels 


Average 
lengtb of 
detention 




5 
4 
9 
19 

7 


Dayt 

7. 8 




14. 




9. 7 




4. 2 


February (to the 15th) 


3. 7 






Total . . 


44 









ESTONIA: ANNIVERSARY OF 
INDEPENDENCE 

[Released to the press February 241 

The President has sent the following message 
to the President of Estonia, Konstantin Pats: 

"The White House, 

February £4, 19Jfi. 

"On behalf of the people of the United States 
and in my own name I extend to Your Excel- 
lency on this anniversary of the independence 
of Estonia most cordial greetings and the assur- 
ances of my best wishes. 

Franklin D. Roosevelt" 



The American Republics 



REPLIES TO PROTEST OF THE TWENTY-ONE AMERICAN REPUBLICS 
ON VIOLATION OF THE NEUTRALITY ZONE ' 



[Released to the press February 23] 

GREAT BRITAIN AND FRANCE 
Following is a translation of a communica- 
tion to the Secretary of State from the Secre- 
tary of Foreign Affaire and Communications of 
the Republic of Panama, transmitted through 
the Embassy of Panama in Washington : 

Panama, January 56*, Wlfi. 
Mr. Secretary: 

For Your Excellency's information, I have 
the honor to transmit to you an authenticated 
copy of the notes from His Britannic Majesty's 
Minister and fi-om the Charge d'Affaires of 
France, forwarding the replies of the Govern- 
ments of Great Britain and France to the cable- 
grams which the President of Panama, in be- 
half of the 21 American Republics, sent to His 
Majesty King George VI and to the President 
of the French Republic, in connection with the 
encounter between naval forces of the British 
and German belligerents which occurred on De- 
cember 13, 1939, within the Security Zone de- 
cided upon at the Consultative Meeting of the 
Ministers of Foreign Affairs of the American 
Republics, held toward the end of last year in 
this city. 

I take [etc.] Narciso Garat 

[EnclosDre 1] 

\The British Minister in Panama to the Pana- 
manian Secretajy of Foreign Afairs and 
Commumcations'\ 

British Legation, 

Panama, January ll^th, Wlfi. 



*See the Bulletm of December 23, 1939 (Vol. I, No 
26), p. 723. 



His Excellency Dr. Narciso Garat, 

Secretary of State for Foreign Affairs, 
Panama. 
Monsieur le Ministre, 

On December 23rd the Acting President of 
the Republic of Panama communicated to His 
Majesty The King the text of a document agreed 
upon unanimously by the 21 American Repub- 
lics in connection with the recent encounter in 
the South Atlantic between certain of His 
Majesty's Ships and the German warship Ad- 
miral Graf Spee. On December 27th His 
Majesty formally acknowledged the receipt of 
this document, stating that, in accordance with 
constitutional practice, he had referred it for 
the consideration of his responsible Ministers. 

I now have the honour, under instructions 
from His Majesty's Principal Secretary of State 
for Foreign Affairs, to communicate to Your 
Excellency the enclosed statement on behalf of 
His Majesty's Government in the United King- 
dom and to request that Your Excellency will 
be good enough to communicate it to the other 
Pan-American Governments. 

I have [etc.] Charles Dodd 

[Subenclosure] 

His Majesty's Government in the United 
Kingdom have devoted most careful considera- 
tion to the communication agreed upon unani- 
mously by the 21 American Republics, the text 
of which was telegraphed to His Majesty The 
King by the Acting President of Panama on 
December 23rd last. In that communication 
reference was made, among other matters, to 
the recent naval action between British and 
German warships in the South Atlantic and to 
the maritime security zone described in the 
Declaration of Panama of October 3rd, 1939. 

199 



200 

His Majesty's Government, who themselves 
so long strove to prevent war, fully appreciate 
the desire of the American Kepublics to keep 
the war away from the shores of the American 
Continent. It was therefore not merely with 
interest but with understanding that His 
Majesty's Government learned of the maritime 
security zone proposal. His Majesty's Govern- 
ment noted with satisfaction from the Declara- 
tion of Panama itself that the attempt would be 
made to base tlie observance of its provisions 
upon tlie consent of the belligerents. This fresh 
expression of adherence to the idea of solving 
international difficulties by mutual discussion, 
which has always been upheld by the American 
Republics, confirmed His Majesty's Govern- 
ment's belief that these Powers would not 
attempt to enforce observance of the zone by 
unilateral action and encouraged their hope 
that it would be possible to give effect by 
means of negotiation to the intentions which 
inspired it. 

It was in this spirit that His Majesty's Gov- 
ei-nment were examining the proposal of the 
Conference of Panama at the time when the 
communication of December 23rd was received. 
In view of this communication His Majesty's 
Govermnent desire to draw the attention of the 
American Republics to the following consider- 
ations: It will be apparent, in the first place, 
that the proposal, involving as it does the aban- 
donment by the belligerents of certain legiti- 
mate belligerent rights, is not one which on any 
basis of International Law can be imposed upon 
them by unilateral action, and that its adoption 
refiuires their specific assent. The acceptance 
by His Majesty's Government of the sugges- 
tion that the belligerents should forego their 
riglits in the zone must clearly be dependent 
upon tlieir being assured that the adoption of 
tlie zone proposal would not provide German 
warsliips and supply ships with a vast sanc- 
tuary from which they could emerge to attack 
Allied and neutral shipping, to which they 
could return to avoid being brought to action, 
and in which some un-neutral service might be 



DEPARTMENT OF STATE BULLETIN 

performed by non-German ships, for example 
by the use of wireless communications. It 
would also be necessary to ensure that German 
warships and supply ships would not be en- 
abled to pass with impunity from one ocean to 
another through the zone, or German merchant 
ships to take part in inter- American trade and 
earn foreign exchange, which might be used 
in attempts to promote subversion and sabo- 
tage abroad and to procure supplies for the 
prolongation of the war, thus depriving the 
Allies of the fruits of their superiority at sea. 
Moreover, the acceptance of the zone proposals 
would have to be on the basis that it should 
not constitute a precedent for a far-reaching 
alteration in the existing laws of maritime 
neutrality. 

Unless these points are adequately safe- 
guarded, the zone proposals might only lead to 
the accumulation of belligerent ships in the 
zone. This in turn might well bring the risk 
of war nearer to the American States and lead 
to friction between on the one hand the Allies, 
pursuing their legitimate belligerent activities, 
and on the other the American Republics, en- 
deavouring to make this new policy prevail. 

The risk of such friction, which His Majesty's 
Government would be the first to deplore, would 
be increased by the application of sanctions. 
His Majesty's Government must emphatically 
repudiate any suggestion that His Majesty's 
Ships have acted, or would act, in any way that 
would justify the adoption by neutrals of puni- 
tive measures which do not spring from the ac- 
cepted canons of neutral rights and obligations. 
If, therefore, the American States were to adopt 
a scheme of sanctions for the enforcement of the 
zone proposal, they would, m effect, be offering 
a sanctuary to German warships, within which 
His Majesty's Ships would be confronted with 
the invidious choice of having either to refrain 
from engaging their enemy or laying themselves 
open to penalties in American ports and waters. 

Up to the present it does not appear that 
means have been found by which the disadvan- 
tages of the zone proposal could be eliminated. 



FEBRUARY 24, 1940 

That this is the case was shown by the oper- 
ations in the zone of the warship Admiral Graf 
Spee and the supply ship Tacoma. 

With regard to the specific incidents of which 
mention is made in the communication under 
reply, His Majesty's Government must observe 
that the legitimate activities of His Majesty's 
Ships can in no way imperil, but must rather 
contribute to the security of the American Con- 
tinent, the protection of which was the object of 
the f ramers of the Declaration of Panama. His 
Majesty's Government cannot admit that there 
is any foundation for a claim that such activities 
have in any way exposed them to justifiable re- 
proach, seeing that the zone proposal has not 
been made effective and belligerent assent has 
not yet been given to its operation. 

In view of the difficulties described above, it 
appears to His Majesty's Government that the 
only effective method of achieving the American 
object of preventing belligerent acts within the 
zone would be, firstly, to ensure that the Ger- 
man Government would send no more warships 
into it. Secondly, there are obvious difficulties 
in applyuig the zone proposal at this stage of tlie 
war when so much German shipping has al- 
ready taken refuge in American waters. If the 
Allies are to be asked to forego the opportunity 
of capturing these vessels, it would also seem to 
be necessary that they should be laid up under 
Pan-American control for the duration of the 
war. 

In the view of His Majesty's Government it 
would only be by means such as those indicated 
that the wish of the American Govermnents to 
keep war away from their coasts could ba 
realised in a truly effective and equitable man- 
ner. Until His Majesty's Government are able 
to feel assured that the scheme will operate satis- 
factorily, they must, anxious as they are for the 
fulfilment of American hopes, necessarily re- 
serve their full belligerent rights in order to 
fight the menace pi'esented by German action 
and policy and to defend that conception of law 
and that way of life, which they believe to be as 
dear to the peoples and Governments of America 

212699 — 40 2 



201 

as they are to the peoples and Governments of 
the British Commonwealth of Nations. 

[Enclosure 2 — Translation] 

[The French Charge in Panama to the Pana- 
manian Secretary of Foreign Affairs mid 
Oonmuwnications} 

Legation of France, 

Panama, January 23, 19^0. 
His Excellency Mr. Narciso Garat, 

Secretary of State for Foreign Affairs cmd 
Commimications, 
Panama. 
Mr. Secretary: 

As Your Excellency laiows, on December 23rd 
last His Excellency Mr. Augusto S. Boyd, Act- 
ing President of the Republic of Panama, sent 
to the President of the French Eepublic the 
text of a note the terms of which had been 
drawn up in common accord by the twenty-one 
American Republics, regarding a naval action 
that had taken place between English and Ger- 
man warships close to the coast of Uruguay. 

On January 4th, Mr. Albert Lebrun ac- 
knowledged receipt of the communication in 
question, indicating that the French Govern- 
ment would submit to a thorough examination 
the proljlems raised by the American Republics, 
problems with regard to which it reserved its 
stand. 

By order of my Govermnent, I have the honor 
to send to Your Excellency, under this cover, 
the response of Mr. Daladier, requesting you 
to be good enough to communicate it to the 
American Republics which signed the Declara- 
tion of Panama. 

I take [etc.] Pierre H. de la Blanchetai 

[ Subenelosure — Translation ] 

The Government of the French Republic has 
examined with attention the communication 
which the Acting President of the Republic 
of Panama was good enough to address to the 
President of the French Republic on Decem- 
ber 23rd last, following a unanimous agreement 
among the twenty-one American Republics. 



202 

This note referred to a naval action that had 
taken place between British and German war- 
ships after the Admiral Graf Spee had at- 
tempted to come up witli the French merchant 
vessel Farinose for the purpose of destroying it. 

2. This communication referred to the desire 
manifested by the American Republics in the 
Declaration of Panama to keep the war away 
from the coasts of the American continent. 
1 he Government of the Republic, which strove 
for a long time to avoid war, fully appreciates 
the desire of the American Republics, and has 
examined in the most sympathetic spirit their 
proposal aiming at the establishment of a zone 
of maritime security. It interprets the steps 
taken in the name of the American Goverimaents 
both on December 23rd and also by the preced- 
ing communication of the Declaration of Pan- 
ama as implying that in the minds of those 
Governments the constitution of such a zone, 
involving a renunciation by the belligerent states 
of tiie exercise, over wide ai'eas, of rights well 
established bj' international custom, could re- 
sult only from an agreement among all the 
states interested. 

3. The recent occurrences to which the com- 
mmiication addressed to the Government of the 
French Republic in the name of the American 
Republics refers illustrate very plainly the situ- 
ation which is to be regulated. These facts 
arise from the attempt of the Admiral Graf Spee 
to attack and destroy, within the zone of mari- 
time security, the French merchant vessel For- 
THose. It is evident that under the conditions of 
the present war such attempts on the part of 
the Germans can have no effect on the outcome 
of this war. It is no less clear that if such 
acts are committed or attempted it is the strict 
right of France and Great Britain to oppose 
this in good time by a counter-attack and that 
they cannot be asked to renounce this right. It 
follows that, if the maritime security zone is 
to become a reality, as the American Govern- 
ments desire, it is necessary for the latter to 
furnish the Government of the Republic with 
satisfactory assurance that the German Gov- 
erimient will no longer send warships or supply 
ships into that zone. 



DEPARTMENT OF STATE BULLETIN 

4. The incontestable superiority that France 
and Great Britain have over Germany in the 
Atlantic and the Pacific Oceans has had the re- 
sult that nimierous German merchant vbssels 
normally have no other resource for escaping the 
legitimate exercise of the right of taking prizes 
than to seek refuge in American ports. The 
institution of the zone of protection could not 
have the effect of releasing them and of thus de- 
priving the Allies of advantages for them aris- 
ing out of their naval superiority over Germany. 
It would therefore have to include, on the part 
of each American Goverimient, effective meas- 
ures adapted to hold in its ports the German 
ships which have taken refuge there. 

5. The American Governments do not appear 
to contemplate assuming the responsibility of 
insuring within the wide areas wliich would 
constitute the zone of protection the suppres- 
sion of acts of aid to the enemy (un-neutral 
service). The possibility of such acts is so 
great, thanks in particular to radio communica- 
tions, that naval forces could not be deprived 
of the right of preventing them and repressing 
them to the full extent permitted by interna- 
tional law. 

6. These are the bases on wliich, if the 
American Governments cause them to be ac- 
cepted by all the belligerent states, there must, 
in the opinion of the Government of the Re- 
public, be sought the accomplislunent of the 
aims pursued by the American Republics. 

7. The Government of the Republic is not 
unaware that because of the novelty of the pro- 
cedure and the extent of the zone differences 
of opinion may arise over concrete cases. At 
least, they can be easily discussed through diplo- 
matic channels if, in application as well as in 
theory, an effort is made to follow the method 
of free discussion and reciprocal agreement. 
On the other hand, there would be danger of 
provoking regrettable friction by proceeding 
unilaterally, departing from the habitual prac- 
tice of nations. Such friction would be par- 
ticularly serious if it proceeded from punitive 
measures against ships that had done nothing 
contrary to international law. To refuse, in a 
case of this kind, refuge, transit or refueling 
to a warship woidd contrast badly with the 



FEBRUARY 24, 1940 



203 



line of conduct adopted by the Government of 
Uruguay with regard to the Admiral Graf 
Spee. 

8. The Government of the Republic hopes 
that by thus setting forth its sentiments it will 
have contributed to the putting into practice 
of the views by which the twenty-one American 
Republics have been inspired. At the same 
time, it anticipates that the latter will recog- 
nize that as long as an agreement is not reached 
on the bases described above, the Government 
of the Republic retains tlie full exercise of its 
rights as a belligerent, which are founded on 
international law and which must permit it to 
safeguard the i^rinciples of law and the concept 
of life which it shares with the Governments 
and the peoples of America. 

Daladler 

GERMANY 

Following is a translation of a note received 
by the Secretary of State from the Ambassador 
of Panama in Washington: 

Embassy of Panama, 

Washington, Febfnary 16, 191fi. 
jMr. Seceetaet: 

I have the honor to transmit to Your Excel- 
lency herewith a copy of the note, with a 
translation thereof into Spanish, addressed to 
the Panamanian Chancellery by the Charge 
d'Affaires of Germany in Panama, by means 
of which he replies in the name of his Govern- 
ment to the jjrotest which the American Re- 
publics, through His Excellency the President 
of the Republic of Panama, addressed on De- 
cember 23, 1939, to the countries which violated 
the Security Zone established in the Declara- 
tion of Panama, of October 3, 1939. 

I avail [etc.] Jokge E. Boyd 

[Enclosure — Translation] 

C onvniunication Received hy the Panamanian 
Chancellery From the Charge d'' Affaires of 
Germany in Panama 

His Excellency Mr. Narciso Garay, 
Minister of Foreign Affairs, 
Panamu. 



Mr. Minister : 

The late President of Panama communicated 
to the Chancellor of the German Reich, by a 
cablegram of October 4, 1939, on behalf of the 
American Republics, the text of the so-called 
Declaration of Panama, which sought to protect 
the neutral American republics against menace 
to their vital interests by the effects of the state 
of war existing at present. For that purpose, 
the establislmient of a security zone is contem- 
plated in the Declaration and of such a nature 
that no militai'y operations may be carried on 
by belligerents in the waters adjacent to the 
American continent, to a fixed distance. The 
Governments of the American republics agree 
that they will endeavor to secure from the bel- 
ligerents the recognition of such a security zone. 
In another telegTam of the Acting President of 
the Republic of Panama, certain cases are men- 
tioned, which, in the opinion of the American 
Governments, have been likely to endanger the 
efforts for the security of the American con- 
tinent. In addition, it was stated in this tele- 
gi'am that the American Governments protested 
to the belligerent powers against these occur- 
rences and that they had entered into consulta- 
tion for the purpose of strengthening the system 
of common protection. The Chancellor of the 
German Reich acknowledged the receipt of these 
two telegrams by telegrams of October 23rd and 
December 29th, 1939, and added that he had 
instructed the German Government to consider 
the matter. As the result of this consideration, 
I have the honor to communicate the following 
to Your Excellency, with the request that it be 
transmitted to the other American Govern- 
ments : 

(1) The German Government welcomes the 
intention of the American Republics, expressed 
in the Declaration of Panama, to maintain strict 
neutrality during the present conflict, and fully 
understands that they wish, as far as possible, 
to take precautionary action against the effects 
of the present war on their countries and 
peoples. 

(2) The German Govermnent believes itself 
to be in agi-eement with the American Govern- 
ments that the regulations contained in the 



204 

Declaration of Panama would mean a change 
in existing international law and infers from 
the telegram of October 4th of last year that it 
is desired to settle this question in harmony with 
the belligerents. The German Government does 
not take the stand that the hitherto recognized 
rules of international law were bound to be 
regarded as a rigid and forever immutable 
order. It is rather of the opinion that these 
rules are capable of and require adaptation to 
progressive development and newly arising con- 
ditions. In this spirit, it is also ready to take 
up the consideration of the proposal of the neu- 
tral American Governments. However, it must 
point out that for tlie German naval vessels 
which have been in the proposed security zone 
so far, only the rules of law now in effect 
could, of course, be effective. The German 
naval vessels have held most strictly to these 
rules of law during their operations. There- 
fore in so far as the protest submitted by the 
American Goveriunents is directed against the 
action of German warships, it cannot be recog- 
nized by the German Government as well 
grounded. It has already expressed to the 
Government of Uruguay its divergent interpre- 
tation of the law also in the special case men- 
tioned in the telegram of the Acting President 
of the Republic of Panama of December 24th. 
Besides, the German Government cannot recog- 
nize the right of the Governments of the Amer- 
ican Republics to decide unilaterally upon meas- 
ures in a manner deviating from the rules 
hitherto in effect, such as are to be taken under 
consideration by the American Governments 
against the ships of the belligerent countries 
which have committed acts of war within the 
waters of the projected security zone, according 
to the telegram of December 24th of last year. 
(3) Upon considering the questions connected 
with the plan for the est<ablislunent of the se- 
curity zone, there arises first of all one important 
point which causes the situation of Germany 
and the other belligerent powers to appear dis- 
parate with respect to this: that is, while Ger- 
many has never pursued territorial aims on the 
American continent. Great Britain and France 
have, however, during the course of the last few 



DEPAKTMENT OF STATE BULLETIN 

centuries, established important possessions and 
bases on this continent and the islands offshore, 
the practical importance of which also with 
respect to the questions under consideration 
here does not require any further explanation. 
By these exceptions to the Monroe Doctrine in 
favor of Great Britain and France the effect 
of the security zone desired by the neutral Amer- 
ican Goverimients is fundamentally and deci- 
sively impaired to start with. The inequality 
in the situation of Germany and her adversaries 
that is produced hereby might perhaps be elim- 
inated to a certain extent if Great Britain and 
France would pledge themselves, under the 
guaranty of the American States, not to make 
the possessions and islands mentioned the start- 
ing points or bases for military operations ; even 
if that should come about, the fact would still 
remain that one belligerent state, Canada, not 
only directly adjoins the zone mentioned in the 
west and the east, but that portions of Canadian 
territory are actually surrounded by the zone. 

(4) Despite the circumstances set forth 
above, the German Government, on its side, 
would be entirely ready to enter into a further 
exchange of ideas with the Goverimients of 
the American Republics regarding the puttmg 
into effect of the Declaration of Panama. 
However, the German Government must as- 
sume from the reply of the British and French 
Governments, recently published by press and 
radio, that those two governments are not will- 
ing to take up seriously the idea of the security 
zone. The mere fact of the setting up of de- 
mands according to which entrance into the 
zone mentioned is not to be permitted to Ger- 
man warships, while the warships of the ad- 
versaries are officially to retain the right to 
enter the zone without restriction, shows such 
a lack of respect for the most elementary ideas 
of international law and imputes to the govern- 
ments of the American states such a flagrant 
violation of neutrality that the German Gov- 
ernment can see therein only the desire of the 
British and French Governments to do away 
with the basic idea of the security zone, first 
of all. 



FEBRTTAET 24, 19 40 



205 



(5) Although the German Government is en- 
tirely ready to enter into the proposals and 
suggestions of the American states in this field, 
the German Government can feel certain of a 
success of the continuation of the plan of the 
security zone only when the British and French 
position that has been made known is funda- 
mentally revised. 

I avail [etc.] Winter 



SUPPLEMENTARY EXTRADITION 
TREATY WITH GUATEMALA 

An annoiuicement regarding the signing in 
Guatemala City on February 20, 1940, of a 
supplementary extradition treaty with Guate- 
mala, appears in this Bulletin under the head- 
ing "Treaty Information." 



Publications 



PUBLICATION OF "FOREIGN RELATIONS OF THE UNITED STATES: 
THE LANSING PAPERS, 1914-1920," VOLUME I 



[Released to the press February 22] 

The first of two volumes of Foreign Relations 
of the United States: The Lansing Papers 191 !^- 
i:)'20, is being released today. The set contains 
iipproxuuately 1,400 pages of diplomatic cor- 
respondence and other documents, chiefly from 
the period of the World War, the greater part 
of which has not previously been published. 

The documents contained in these two vol- 
umes constitute an extensive selection from the 
large body of correspondence of Robert Lansing, 
former Secretary of State, which was secured for 
the files of the Department of State following 
Mr. Lansing's death in 1928. These papers were, 
therefore, not available at the time when the 
voliunes of Foreign Relations for the years 1914 
through 1919 and the supplementary volumes 
on the World War and on Russia were compiled. 
A large number of the papers, however, seemed 
to liave such gi-eat public interest that it was 
deemed desirable to publish these additional 
supplemental volumes. Although the volumes 
consist largelj' of papers received from the col- 
lection of Mr. Lansing, a certain number of 
closely related documents from other ofiicial 
sources, whose publication seemed desirable, 
iiave been included. These papers represent, 
therefore, an additional selection of documents 
from the period 1914 through 1920 bearing on 



subjects which have already been presented in 
volumes of Foreign Relations dealing with that 
period. 

Volume I consists entirely of documents from 
the period of American neutrality in the World 
War. In it are contained papers dealing with 
such subjects as efforts at neutralization of the 
Far East in the early stages of the war, the 
attitude of the United States toward the sale of 
munitions and extension of loans to belligerents, 
the discussion of the treatment of armed mer- 
chant ships, and the prolonged controversy with 
Germany over submarine warfare, culminating 
in the entry of the United States into the war. 

The first volume is also of importance for the 
large number of letters and papers it contains 
from the pens of President Wilson, Secretary 
of State William J. Bryan, Secretary of 
State Robert Lansing, and Col. Edward M. 
House, as well as a number of American am- 
bassadors and ministers in Europe including 
Walter Hines Page, James W. Gerard, Thomas 
Nelson Page, Frederic Penfield, Henry Morgen- 
thau, Abram I. Elkus, and Brand Wliitlock. 

The volumes were compiled under the direc- 
tion of the late Dr. Cyril Wynne, former Chief 
of the Division of Research and Publication, 
Department of State ; Dr. E. Wilder Spaulding, 



206 



DEPAEXirE:jn: of state BrxLETix 



present Chief of the Division; and Dr. E. R 
Perkins, Chief of the Research Section of the 
Division. The selection and arrangement of the 
papers was the work of Dr. J. S. Beddie of the 

Besearch Section. 



Copies of these volumes will shortly be 
obtainable from the Superintendent of Docu- 
ments, Government Printing Office. Washing- 
ton, D. C_ at a price of S1.50 for volume I and 
Sl.25 for volume II. 



Commercial Policy 



ARE TARIFF WALLS BLOCKADDsG A3IERICA? 

Address by .\ssistant Secretary Grady ' 



[Kdcaaed to tbt press Februrr IS] 

They are ! Our own and those of other coun- 
tries are restricting our prosperity and lim i ting 
our progress. The dependence of national well- 
being on foreign trade has been ignored, as is 
evinced in the trend of commercial policy dur- 
ing the peace intermission of the past two dec- 
ades. In time of war, however, the vital im- 
portance of trade to a nation's existence is fully 
realized. The economic blockade, one of the 
chief weapons of warfare, is aimed at cutting 
off the trade of the enemy country and bringing 
about thereby its economic collapse and. conse- 
quently, its ultimate defeat. Strange as it may 
seem, we have in past years been waging eco- 
nomic warfare against ourselves. We cut off our 
own trade by a blockade of excessively high 
tariffs. 

This economic stupidity was due to the lack 
of a commercial policy for protecting and pro- 
moting the interests of the Nation as a whole. 
We yielded to one pressure group after an- 
other seeking high-tariff protection for their 
own particular markets at the expense of other 
interests of the Nation. Robbing Peter to pay 
Paul results in no net increase in national pros- 
perity. If we are to realize fully our economic 
potentialities, we must seek, with due regard to 
practical considerations, to produce goods which 
we are best adapted and equipped to produce. 

• Delivered at a special broadcast of the Round Table 
program of the University of Chicago over the red 
network of the National Broadcasting Co., February 



The output which is in excess of our national 
requirements can then be exchanged for other 
commodities of foreign origin at lower cost 
than they could be produced at home. There- 
fore, an markets for American products, foreign 
as well as domestic, must be taken into account 
in any commercial poUcy designed to increase 
national prosperity. 

Other nations also have established trade 
blockades against themselves. In the more ex- 
treme cases of this type of economic insanity, 
not only has the national well-being been seri- 
ously affected, but also democratic institutions 
have tended to deteriorate. Such devices for 
restricting imports as quotas, exchange control, 
clearing agreements, and barter lead to the ex- 
tension of bureaucratic control into every cor- 
ner of domestic business. In a country in which 
the national economy is subject to far-reaching 
governmental control, a need arises for concen- 
trating its direction and responsibility for it in 
the hands of a few persons. Little room is left 
for private initiative or for the exercise of indi- 
vidual rights. 

Purthermore, blockades of excessive trade 
restrictions lead ultimately to war. They cut 
off the trade not only of the countries which im- 
pose them but that of other countries as well. 
The world community becomes impoverished. 
Nations are unable to obtain on a cooperative 
and reciprocal basis access to world markets and 
foreign supplies of raw materials. In their 
struggle for such markets and supplies, they 



FEBRUAEY 24, 1940 



207 



resort to pressure methods and, rather than fail, 
to physical force. 

The depression of 1930-32 shocked this coun- 
try into adopting a sane commercial policy, 
embodied in our trade-agreements program. 
We seek in this program to promote the eco- 
nomic interests of the Xation as a -whole, to 
preserve the economic foundation of our demo- 
cratic institutions, and to encourage interna- 
tional economic cooperation in the interests of 
world peace and prosperity. 

The trade-agreements i^rogram provides an 
effective means for building up foreign trade 
so vital to our national well-being. Trade is 
reciprocal in nature. Foreign customers can- 
not buy from us unless we buy from them. 
Trade agreements are based on this principle 
of reciprocity. In return for increased market 
opportunities abroad for our products, we agree 
to grant in the form of nonpolitical and eco- 
nomically sound adjustments in tariff rates in- 
creased opportunities in our markets for for- 
eign products. Notwithstanding the loud and 
hollow protests of high-tariff lobbies, whicli 
have been trying especially hard recently to 
excite our farmers against the program, there 
is no evidence at all to support their contention 
that trade agreements have injured American 
industry, agriculture, and labor. In fact, the 
evidence is to the contrary. Even certain in- 
dustries whose tariff protection has been re- 
duced have benefited. This is because increased 



export trade brought about by trade agreements 
creates new purchasing power at home and 
thereby raises domestic business in general to 
a higher level of activity than would otherwise 
be possible. 

Moreover, this program, in providing in- 
creased opportunities for trade, fosters private 
enterprise and individual initiative which are 
essential to a democratic economy. Trade re- 
strictions which result in the piling up of ex- 
port surpluses and in depressed prices lead to 
drastic and sometinaes permanent measures for 
the control of domestic production which 
means, to a growing extent, regimentation. It 
is the purpose of trade agreements to find out- 
lets for such surpluses. 

The trade-agreements program has already 
demonstrateci to the world that it is possible 
to break tkrough the blockade of excessive 
trade restrictions which nations have blindly 
imposed against themselves. It has demon- 
strated the benefits of cooperating with other 
nations to increase trade. It has become a 
symbol of hope that peace hereafter may be 
founded on a basis of international economic 
sanity. If not for our own national good, then 
in the interest of peace, dare we forsake the 
trade-agreements program at this critical time ? 
If we do where, after the war is ended, would 
the world find an expression of sane principles 
by which nations in their economic relations 
could learn to live together harmoniously I 



♦ -f -f -f > ■♦■ -f 



THE TRADE- AGREEIMENTS PROGRAIM FROM THE POINT OF VIEW 
OF THE COLLEGE STLT)ENT 

Address bv Wallace McClure * 



[Released to the jwess February 22] 

I am glad that you are permitting me to ad- 
dress your class in World Affairs on Washing- 
ton's birthday. And I am particularly proud 
that the class is itself a feature of the institution 



'Delivered at Mary Washington College, Fredericks- 
burg, Va., February 22, 1940. Mr. McClure is Assistant 
Chief of the Treaty Division, Department of State. 



of higher learning which bears the name of and 
stands a worthy monument to the mother of 
Washington — here in the community which was 
long her residence, and his. Tliere is a real 
appropriateness, moreover, in the choice of trade 
agreements as our subject. For Wasliington 
was, fii-st and foremost a great revolutionary — 
the leader, both in arms and statesmanship, of 



208 



DEPARTMENT OF STATE BULLETIN 



one of the successful revolutions disclosed by the 
pages of world history — and the revolution 
which lie led to successful consummation was in 
large part directed against the system of hin- 
drances to trade, characteristic of Washington's 
and preceding centuries, and which our eco- 
nomics books call mercantilism. Nor is it a 
matter of surprise that, contemporaneously with 
that revolution, a new school of economists was 
proclaiming with unanswerable logic and un- 
forgettable eloquence that the wealth of nations 
is created more abundantly as frustrations in the 
way of production and distribution are elim- 
inated and that there will be more of the good 
things of life for all of us if production is actu- 
ally carried on where circumstances combine to 
make its operations possible with a minimum of 
effort. 

When, as college students, you examine a 
problem of your own day and seek conscien- 
tiously to fulfill a duty of your own citizenship, 
you will wish, I am sure, to bring to bear upon 
it, if you can, whatever light history may offer. 
This must be done with rigid intellectual hon- 
esty, lest you become victims of the common 
pitfall of supposing that, in the new environ- 
ment — and every new generation finds itself in 
a new environment — old advice, old precedents, 
old solutions, are necessarily in any realistic 
sense applicable. Nothing can be more unjust 
to great men of the past than, in Kipling's 
phrase, for knaves to twist the truth they've 
spoken and therewith make perhaps a trap for 
fools. And no twisting is more complete than 
that of applying words uttered at one time and 
in the face of one set of facts to a set of facts 
occurring decades or centuries later and neces- 
sarily differing, even though in some respects 
remaining similar. 

Thus, it would be absurd to say that, because 
the Washington administration, serving a new 
small debtor nation, well suited for industrial 
enterprise if only the inertia of commencement 
coiUd be overcome, approved a moderate tariff 
on imports, there is anything Washingtonian 
about the excessive, often "skyscraping" duties 
imposed under the tariff acts of 1922 and 1930. 
And it would also be unfair to accredit Wash- 
ington with approval of the unconditional most- 



fa\*ored-nation policy of the treaties and execu- 
tive agreements inaugurated by Secretary (now 
Chief Justice) Hughes and continued by the 
present administration in the reciprocal trade 
agreements, correctly associated with the name 
of Secretary Hull, merely because Washington 
said, in his Farewell Address, "our commercial 
policy should hold an equal and impartial hand ; 
neither seeking nor granting exclusive favors or 
preferences. . . ." But the historical fact re- 
mains that the international economic policies 
of the United States during the first half cen- 
tury and more of its independence were prin- 
cipally concerned with breaking down the ves- 
tiges of the old mercantilism, chiefly expressed 
in discriminatory navigation laws. And it 
seems unquestionably true that there is some- 
thing of a parallel today, yet one marked by far 
heavier lines of obstructionism, in the new mer- 
cantilism that originated in the black period of 
the World War and which expresses itself 
chiefly in goveriunental controls operating upon 
the movement of goods — tariffs of fantastic 
height and other devices of even more fantastic 
conception and form, and even more realistic 
effectiveness. It is interesting to note, accord- 
ingly, that, notwithstanding the lapse of a 
century and a half, the Government of the 
United States at this day is advocating, as the 
remedy for depression resulting from such 
fantasies translated into fact, these same prin- 
ciples of moderation and of equality of treat- 
ment. 

Just as the old navigation laws of Washing- 
ton's day were eventually blotted out by a long 
series of treaties and executive agreements open- 
ing ports to the shipping of all countries and 
prescribing equal port dues for all, with moder- 
ation in charges inevitably following, since they 
fell alike upon national and nonnational ves- 
sels, so effort is being made in this decade of 
post-war economic crisis and chaos to use the 
corresponding instrumentality of the reciprocal 
trade agreement to restore moderation and 
strengthen equality as twin principles govern- 
ing such governmental control as may be exer- 
cised over the exchange of merchandise between 
nations. It is, of course, with this present-day 
effort that we are concerned today. 



FEBRUABY 24, 19 40 



209 



The immediate background of the current 
trade-agreements policy and its practical op- 
eration through the conclusion of agreements 
with other countries — now numbering 20 — was 
the world depression — generally believed to 
have been the worst depression in all history. 
The American people and their representatives 
in the Federal Government, though necessarily 
dealing with unprecedentedly complex economic 
problems, had shown a totalitarian disregard 
for the teachings of the science of economics. 
Their minds continued to dwell upon the pos- 
sibilities (note that I am not saying the de- 
sirabilities) of debtor-nation economy and, in 
their thinking, they refused to accept the cov- 
eted status of creditor to other peoples. They 
demanded the payment of debts but refused 
payments in the only forms of wealth in which 
the debtors could ultimately pay. And for the 
most part they seemed unable to grasp the con- 
nection between debts and tariffs and accom- 
panied their policy of debt collection with a 
policy of pay prevention through prohibitory 
tariffs upon the goods by means of which alone 
the debtors were equipped with possibility of 
payment. And finally, rejecting the practi- 
cally unanimous voice of the economists of the 
country, they met the outbreak of acute de- 
pression with further tariff increases, thus in- 
viting (and obtaining) imitation throughout 
the world and handing out not food but poison 
to an economically starved mankind. 

In these ways the depression was rendered 
more acute; but the educational effect was im- 
mense. In 1934 a step was taken in accordance 
with economic science and with results which 
the economists of the country — as shown by a 
recent poll — approve with substantial unanim- 
ity. This step was the enactment of the Trade 
Agreements Act. 

I can think of no better way to approach an 
examination of the trade-agreement policy than 
from the point of view of the college student, 
the point of view of yourselves. 

You can examine it without ulterior mo- 
tive, for, as college students, your one aim is 
to learn the truth. Economic questions in gen- 
eral, but particularly questions even remotely 



involving the tariff, are wont to evoke inquiries 
that are not pertinent. Persons engaged in 
production and transportation all too fre- 
quently separate themselves from their coun- 
trymen and espouse measures calculated to en- 
rich themselves at the expense of the country 
as a whole. That they are frequently in the 
short rim myopic and always in the long run 
wrong need not detain us. The point is that 
they are willing to put their fancied gain above 
the public welfare. You who are fortunate 
enough to be among the tiny percentage of 
those of your generation to attend an institu- 
tion of higher learning and so to undertake 
the duty and responsibility of leadership in the 
days to come, have, as college students, no spe- 
cial interest to serve : you can have no point of 
view except that of your country, of one united 
people. And, pondering upon the interest of 
your country as a whole you can, in particularly 
full perspective, appreciate that interest in its 
breadth and in its depth, in its generous rela- 
tions with the rest of the world, and with respect 
to its healthy development in the foreseeable 
future. You can with clarity perceive that such 
a policy is likely to have more than one aspect 
and to be connected with more than one field of 
endeavor. I should like to invite you, accord- 
ingly, in the light of history and as imbiased 
scholars, to examine it as a contribution to more 
prosperous economy, more eflScient government, 
more effective democracy, and more peaceful 
international relations. 



The advocacy of reciprocal trade agreements 
is, of course, based on the belief that trade is 
beneficial. Washington, with ripe experience 
as a planter and exporter, commended, in his 
Farewell Address, "liberal intercourse with all 
nations . . . diffusing and diversifying by gentle 
means the streams of commerce . . . establish- 
ing with Powers so disposed, in order to give to 
trade a stable course . . . conventional rules of 
intercoui-se, the best that present circumstances 
and mutual opinion will permit." That is pre- 
cisely what the trade agreements do, and in 
doing so they follow not only Washington's 



210 

advice but that of his contemporary, Adam 
Smith, father of modern political economy, and 
the persistent counsel of almost every economist 
and merchant since their time. 

It is worth remembering also tliat the Consti- 
tutional Convention over which Washington. 
presided, keenly aware, as it was, of the depres- 
sion-producing effects of barriers to interstate 
trade, had sought to eliminate forever practices 
which made the Potomac a navigation and cus- 
toms frontier between Virginia and Maryland 
and which other States indulged in to their 
mutual impoverishment. Nor should it be for- 
gotten that Washington's friend and neighbor, 
George Mason, stalwart libei-al that he was, de- 
clined to sign the Constitution in large part 
l)ecause he felt that it did not sufficiently safe- 
guard the ])cople from interference with their 
international trade by the new Federal Govern- 
ment about to be set up. He thought, indeed, 
chiefly in terms of interference with shipping, 
but in those daj'S, as above pointed out, navi- 
gation laws, rather than tariffs, were the most 
potent trade obstructors. 

We may fittingly pay tribute to George Ma- 
son's fears when we contemplate the tariff act 
of 1930. 

The Congress did, indeed, pay unconscious 
tribute to the economic philosophy of the Revo- 
lution, as well as to the accumulated economic 
wisdom of all experience, when it amended the 
tariff act of 1930 so as to reduce tariff rates 
whenever the President should, in negotiation 
with other countries, arrive at reciprocal agi-ee- 
ments whereby both parties would undertake to 
encourage trade between their respective peoples 
by lowering barriers — tariff duties and others — 
between them. 

Since the Trade Agreements Act became law 
on June 12, 1934, 23 trade agreements have been 
entered into by the President and several others 
are now in process of negotiation. Agreements 
have occasionally been altered by special amend- 
ing agreements. There have been two trade 
agreements with Canada and two with Cuba; 
of the others, one, that with Czechoslovakia, is 
not now operative. Of outstanding importance 
is the agreement with Great Britain, which has 



DEPAKTMENT OP STATE BULLETIN 

now been in effect for well over a year. It is 
between the two largest trading countries in the 
world and includes also Newfoundland and the 
British colonies. 

In view of the fact that the people of Great 
Britain are and long have been the most im- 
portant group of purchasers of agricultural 
products from the United States, the complete 
abolition of British duties on wheat, lard (the 
most important corn-hog export) , canned grape- 
fruit, and certain fi'uit juices, is particularly 
noteworthy; substantial reductions were, more- 
over, effected in respect of rice, apples (one of 
Virginia's leading agricultural specialties), 
pears, and certain canned fruits. The quota of 
American hams (inclusive of those which make 
Virginia famous) was increased and their free 
entry was bound against change. 

Naturally the reductions made in the United 
States tariff' are characteristically on fabricated 
articles, among which certain textiles are of out- 
standing importance. But in respect of both ex- 
ports and imports the items affected by the 
agreement are far too numerous to be accurateh' 
set forth in one or two examples or generaliza- 
tions. 

The trade agreements contain not only re- 
ciprocal-trade-barrier reductions, but, save in 
the special case of Cuba, reciprocal promises 
that, should either party make further reduc- 
tions in an agi'eement with some third country, 
these reductions will be applicable to imports 
from the other, as though superadded to the 
original agreement between them. This is the 
equality of treatment or most-favored-nation 
treatment clause, which is the companion prin- 
ciple upon which, along with the moderation 
of duties, the trade agreements are based. 
Obviously the conclusion of a trade agreement 
would be a matter of precarious value if either 
party should be permitted thereafter to leave 
a heavier burden on the commerce of the other 
than on that of some competing third power 
with which it might subsequently enter into a 
reciprocity bargain. Moreover the simplicity of 
equality as contrasted with the complexity of 
special treatment of separate countries is a 
strong economic argument and preferences and 



FEBRUAKY 24, 1940 



211 



discriminations usually result in economic waste 
in much the same way as outright obstructions 
to trade : that is to say, they tend to divert trade 
into ulterior channels rather than to leave it 
■vvfliere, again to quote Washington's words, it 
would follow "the natural course of things," the 
chamiels indicated by maximum product for 
minimum labor. 

Here, indeed, is the key to the justification of 
trade, international no less than interstate or 
local. All of us want wealth in many forms 
with the least attendant expense. We can have 
more of the things we want if they are produced 
where natural and other factors combine to make 
production cheapest. Unless everything each 
of us possesses is made by himself or his family 
or other persons with whom he shares things 
in common, trade must continually go on. Since 
no area or country produces all things cheapest, 
the widest possible exchange of useful articles 
throughout the world is necessary if all of us 
are to have the largest possible pi'oportion of our 
respective wants fulfilled — in other words, if 
there is to be the highest attainable standard of 
living. Thus international trade is essential to 
the building up of popular living standards and 
the trade agreements, by reducing obstructions 
to trade, promote the development of trade and 
so are calculated to help us all to have more of 
this world's goods than we should have without 
them. That such is actually their effect is indi- 
cated by the fact that trade has grown sub- 
stantially more rapidly with the trade-agree- 
ment countries, or, where there has been 
recession, has fallen off in less amount, than 
with countries with which no such promoters 
of the interchange of goods exist. 

The diffusion of benefits is probably univer- 
sal : the reduction of a Canadian duty on vari- 
ous automotive vehicles, for instance, may result 
(as it has) in an increase in imports from the 
United States into Canada. This puts more 
men to work in automotive factories here. 
This, in turn, increases urban purchasing 
power for such agricultural products as beef 
and cheese and so builds up their home market 
and perhaps raises the prices the herdsman or 
dairy farmer receives. This enables the latter 



producers to purchase more of the things they 
want, which stimulates other industries, and so 
proceeds on and on in unending circles of in- 
creasing prosperity. Meanwhile the Canadian 
farmer is able to get more for his money when 
he needs a tractor or an automobile and so has 
something left for other purchases which set 
in motion circles of increased business activity 
that similarly may go on and on indefinitely. 
It is noteworthy that in the United States — 
doubtless everywhere — increased importation of 
goods is a thoroughly trustworthy sign of in- 
creased prosperity. Unimpeachable statistics 
show that the two almost invariably rise and 
fall together. 

II 

As patriotic citizens, college students are con- 
cerned, of course, witli the efficient production of 
the good things of life for the people of their 
country and the people of all countries. They 
are anxious that their Government shall not be 
guilty of causing waste of effort such as trade 
barriers imply. But they realize also that, in 
view of the long background of tariff history 
and the age-old custom of moderate protection, 
their attack should be directed only upon the 
excessive barriers and super-obstructionism of 
the post World War decades and that tariff- 
making in the United States must and will con- 
tinue. Accordingly they ask themselves what 
is the best procedure for constructing a tariff in 
the enlightened national interest and that alone. 

Washington, to whom his country stands eter- 
nally indebted for its union and its strength, 
told his countrymen in no uncertain terms that 
to the efficacy and permanency of that union, 
"a Government for the whole is indispensable". 
It would have been indeed fortunate if that 
fimction of government which is involved in 
tariff-making could have been carried on in the 
spirit of government for the whole. 

But the national legislature, for reasons suf- 
ficient in themselves, is chosen from local con- 
stituencies and that fact long since made of 
legislative tariff rate-making a process quite 
incompatible with results reflective of a national 
point of view. Moreover, the business of a leg- 



212 



DEPARTMENT OF STATE BtTLLETIN 



islature is to determine broad lines of- policy, 
not to work out the minute details of their ap- 
plication, and the old system of tariff-rate de- 
termination long since fell into abysmal dis- 
repute. 

This political principle is admirably illus- 
trated by the method employed by the people 
of the United States for the control of railroad 
rates. You have noted in the papers within the 
last few days the fact that the Interstate Com- 
merce Commission has ordered the eastern rail- 
roads to reduce their basic passenger-coach 
rates to 2 cents ijer mile. No question appears 
to have been raised regarding the propriety of 
this method of accomplishing the end in view : 
I'egulation of a public sei-vice performed by 
private companies. The national legislature 
determined the policy of such regulation and 
laid down the rules of its performance. But 
the actual rates are determined and determined 
definitively by a permanent commission of ex- 
perts devoting to the job specialized knowledge 
and perennial study. There appears to be no 
record that anyone has ever suggested that the 
rates thus fixed be subject to ratification by the 
Senate or confirmation by Congress. 

An instructive parallel exists between rail- 
road rate-making and tariff rate-making. Both 
affect intimately the public in general and the 
conduct of business in particular. In both 
cases sectional and local favoritism has been 
charged and doubtless has existed. Both proc- 
esses require patient acquisition and study of 
vast arrays of highly detailed statistical and 
other facts. Reasonably correct findings re- 
quire both vast amounts of time for examina- 
tion of data and carefully weighed judgment 
in interpreting such data. Neither could be 
performed by men proficiently engaging their 
minds in the very different intellectual process 
of making large decisions in the realms of high 
policy. 

A quarter of a century ago, accordingly, the 
Congress created the United States Tariff Com- 
mission on the general model of the Interstate 
Commerce Commission and gave it a mandate to 
assist in tariff rate-making. This Commission, 
together with the Departments of Agriculture, 



Cbinmerce, State, and the Treasury, contribute 
qualified personnel to the interdepartmental or- 
ganization which advises the President — the sole 
authority under the Constitution for negotfiat- 
ing on behalf of the American people with the 
representatives of other peoples — as to the tariff 
changes, within the statutory limits of 50 per 
centum of the rates of the 1930 act, which he 
may put into the trade agreements on behalf 
of his Government without imduly dislocating 
the existing economic situation. That such ad- 
vice has been adequate is evidenced by the fact 
that no one seriously claims that any measur- 
able specific injury has been done, after more 
than 5 years of duty reductions, to any protected 
industry. 

To submit the agreements as concluded with 
other countries to either the Senate alone or to 
both Houses of Congress for review would be to 
throw away all of the hard-won advantages of 
tariff rate-making from the national point of 
view by disinterested specialists and revive all 
the evils of local and vested interest pressures 
which made the enactment of tariff laws in for- 
mer times a reproach to the American system of 
government — a reproach because it was, in all 
truth, a perversion of the legislative function of 
determining policy to the administrative func- 
tion of applying that policy to specific facts and 
circumstances. The Trade Agreements Act is 
not a delegation of legislative power : it is a be- 
lated recognition of a neglected Executive 
power — and duty. 

It is interesting to note that the first political 
and legal precedent for the Trade Agreements 
Act was signed by President Washington in 
1792, when Congress passed an act which cleared 
the way for executive agi-eements with other 
countries providing for the international car- 
riage of the mails. Washington's postmaster 
general, Timothy Pickering, subsequently his 
Secretary of State, concluded the first postal 
agreement — with Canada — almost immediately 
thereafter. Several hundred such agreements 
have, in the intervening century and a half, been 
put into operation ; among their regulations are 
those fixing postal rates or tariffs. Constitu- 
tionally, they would seem to parallel the trade 



FEBRUAKY 24, 1940 

agreements and to reinforce the other hundreds 
of precedents, many of them in the field of com- 
merce, the validity of wliich, whenever they 
have been brought before the Supreme Court, 
has been invariably sustained. 

Ill 

No more solemn warning ever issued from 
the pen of Washington than that of the evils 
of partisansliip — "the. fury of party spirit," 
and "the impostures of pretended patriotism." 
The discredited system of legislative tariff 
rate-making invited both these evils in particu- 
larly aggravated form and made of a very seri- 
ous national and international economic issue 
a plaything of local and personal unenlightened 
self-interest. Can anj'one argue that the results 
represented the wishes of the American people ? 
Can anyone deny that the whole consequence 
repi'esented a pitiful travesty upon the ideal 
of government of, by, and for the people? 
Popular sovereignty is but a mockery when 
it is flouted by high-pressure group influences 
and consequent "log-rolling" on the part of the 
people's own servants. 

Democracy is easily theorized about, difficult 
to reduce to workable formulae of operation. 
The old method of tariff rate-finding failed 
not because of any want of democracy in Con- 
gress as an institution, but because of an at- 
tempt to use it for purposes to which it is not 
and never was adapted. The people of the 
United States as a whole, as well as the people 
of every one of its parts, hold the Executive 
responsible to their electorates. Experience 
has proven that, with the assistance of a per- 
manent staff of civil-service appointees, the 
Executive is better equipped and more sheltered 
from anti-democratic influences than any other 
agency so far tried for the job of the fixation, 
within limitations laid down by the National 
Legislature, of tariff rates designed to reflect 
the national interest. Expert and thorouglily 
responsible both to the people and to Con- 
gress — which stands always ready to alter or 
repeal any law that is shown to be other than 
beneficent — those who administer the Trade 



213 

Agreements Act would seem to have effected 
a genuine forward step in the science and art 
of democratic government and to have created 
a higher degree of effective democracy in the 
United States. 

IV 

The trade-agreements program is not an af- 
fair of domestic policy merely. It has a very 
important place in the international policy of 
this country. At a time when, throughout the 
world, governments were following the advice 
of those who would exorcise the curse of eco- 
nomic poverty by setting up all manner of 
obstructions to production — like "curing" one 
afflicted with pulmonary tuberculosis by con- 
fining him in an air-tight compartment — the 
American people determined to face in the op- 
jDOsite direction, to do something to encourage 
the interchange, consequently the creation, of 
the things all people want. International trade 
had been prostrated by the depression which 
trade obstructionism had helped to bring 
about. There was vital need for a policy of 
healing and restoration. Such was one aspect 
of the genesis of the trade-agreements program. 

It is an aspect even more vital than the con- 
tribution of the trade agreements to national 
prosperity or the development of the science of 
democratic government, for it is distinctly re- 
lated to the maintenance of peace and order 
in the world. 

The trade agreements are emissaries of peace 
because they encourage the nations to be help- 
ful to one another, to cooperate in economic 
production calculated to provide the largest re- 
turns for the least expenditure of labor. Trade, 
by enabling production to take place where it 
is most efficient thus encourages peace, and the 
resulting addition to popular contentment tends 
to immunize mankind from the contagious in- 
flammation of war. The provision for equality 
of treatment impresses the nations with its fair- 
ness and brings reactions favorable to peaceful 
attitudes in contrast to the bitterness that grows 
out of special discriminations and the wrath- 
breeding retaliations that may be expected to 
spring up in their path. 



214 

Having once assumed the leadership for better 
world conditions which tlie trade-agreements 
policy has given them, will the American people 
consent to abandon it now? To do so would be 
to tlu-ow away their best agency for assisting 
the warring nations to a practicable and a last- 
ing settlement, once there has come an armistice 
to the present hostilities. 

Wliile orators are today paying tribute to the 
Father of his Country, and the Congress is lis- 
tening to the reading of the Farewell Address, 
pausing as it were in this week's discussion of 
the necessary resolution to extend the life of the 
Trade Agi-eements Act, we can perhaps most 
fittingly close today's meeting of the class with 
an excerpt from that famous pronouncement- 

"Observe good faith and justice towards all 
nations. Cultivate peace and harmony with all. 
Keligion and morality enjoin this conduct; and 
can it be that good policy does not equally enjoin 
it? It will be worthy of a free, enlightened, 



DEPARTMENT OF STATE BULLETIN 

and, at no distant period, a great nation, to give 
to mankind the magnanimous and too novel ex- 
ample of a people always guided by an exalted 
justice and benevolence. Who can doubt that, in 
the course of time and things, the fruits of such a 
plan would richly repay any temporary advan- 
tages which might be lost by a steady adherence 
to it? Can it be that Providence has not con- 
nected the permanent felicity of a Nation with 
its virtue? The experiment, at least, is recom- 
mended by every sentiment which ennobles hu- 
man nature." 

Is there any manner in which we can better 
"cultivate peace and harmony with all" than 
that of cooperation in building up a better-or- 
dered economic world? — a regime based on 
equality and reciprocity in which people every- 
where can enjoy more of good things of life? 
A progi-am to such end is like spring sunshine 
on a frozen highway — that has been clogged and 
impassable through the length of a hard winter. 



General 



IMMIGRATION VISA STATISTICS 



tReleased to the press February 21] 

During the fiscal year ended June 30, 1939, 
American consular officere abroad issued 58,853 
quota and 23,813 nonquota immigration visas, 
making a total of 82,666 immigration visas, as 
compared with a total of 74,948 inunigration 
visas issued in the fiscal year 1938, and as com- 
pared with a total of 258,348 immigration visas 
in the fiscal year ended June 30, 1930. 

Of the total of 82,666 inunigration visas is- 
sued in the fiscal year 1939, "new" immigrants 



'A rcwnt publication (No. 1386) of the Department 
of State entitled, The Immiyrution Work of the Depart- 
ment of State and Its Consular Officers, revised to July 
1, 1938, contains a useful summary of immigration 
work up to that date. Copies may be obtained at 100 
each from the Superintendent of Documents, Govern- 
ment Printing Office, Washington, D. C. 



received the 58,853 quota visas and 20,493 of the 
nonquota visas, or a total of 79,346. The re- 
maining 3,320 nonquota visas were issued to 
students, whose admission into the United 
States is on a temporary basis, and to aliens 
previously lawfully admitted into the United 
States for permanent residence who were re- 
turning from temporary absences. Of the 
79,346 "new" immigrants, 15,627, or approxi- 
mately 20 percent, consisted of fathers, mothers, 
and husbands of American citizens, and wives 
and unmarried, minor children of lawful alien 
residents of the United States. 

The annual immigration quotas for all coun- 
tries total 153,774, against which 58,853 quota 
visas were issued in the fiscal year 1939, repre- 
senting an underissue of 62 percent. Forty- 



FEBRUARY 2 4, 194 



215 



six percent of the quota immigration visas 
issued in the fiscal year 1939 were received by 
persons chargeable to the quota for Germany, 
including former Austria, as compared with 
43 percent in 1938. 

The quotas for the followmg countries were 
fully issued during the 1939 fiscal year : Albania, 
Australia, Bulgaria, China, Czechoslovakia, 
Free City of Danzig, Germany, Greece, Hun- 
gary, Latvia, Lithuania, Palestine, Poland, 
Rumania, Syria, Turkey, Yugoslavia, and the 
Philippine Islands. 

Of the 20,493 nonquota visas (not including 
students and returning residents) issued in the 
fiscal year 1939, 12,299, or approximately 60 
percent, were received by persons born in coun- 
tries of the Western Hemisphere. Of the latter 
number, 7,811 visas were issued to persons born 
in Canada, as compared with 10,687 in the fiscal 



year 1938, and 2,262 visas were issued to Mexi- 
can-born persons, as compared with 2,483 in 
the previous fiscal year. 

Owing to disturbed conditions abroad the 
demand for inunigration visas has increased 
since a few months prior to the end of the 1938 
fiscal year, as compared with the several pre- 
ceding years. B}' June 30, 1939, the total num- 
ber of aliens registered at consular offices as 
intending quota immigrants amounted to 657,- 
353, as compared with 317,606 on June 30, 1938, 
and 246,869 on June 30, 1937. Of the total num- 
ber of aliens registered on June 30, 1939, 309,782 
wei"e chargeable to the quota for Germany, 115,- 
222 to the quota for Poland, 51,271 to the quota 
for Czechoslovakia, and 32,836 to the quota for 
Hungary. These figiires do not include the 
nonquota immigration visa demand, of which 
no register is kept by consular officers. 



Quota Immigration Visa Statistics for the Fiscal Year Ended June 30, 1939 

VISAS ISSUED against ANNUAL QUOTA 





Annual 
quota 


Preference visas 


Nonpref- 
erence 
visas 


Total 
quota 
visas 




Country 


Relatives of 
American 
citizens 


Farmers 


Relatives 
of aliens 


Total 


of annua 
quota 
issued 


Afghanistan 


100 
100 
100 
100 
100 

1,304 
100 
100 
100 
100 
100 

2,874 
100 

1, 181 
100 
116 
100 
569 

3,086 

27, 370 

65, 721 

307 

869 

100 

100 

100 

100 

17, 853 

5,802 
100 
















Albania 


31 




69 


100 




100 


100 


Andorra 




Arabian Peninsula 


2 

4 
19 






2 

5 

25 


5 

95 

362 


7 
100 
387 


7 


Australia.- _ _ _ 




1 
6 


100 


Belgium - .. 


29 


Bhutan 




Bulgaria. _ _ _ . 


7 




15 


22 


78 


100 


100 


Cameroons, British. _. 




Cameroun, French. 










2 

97 

2,447 

84 

275 

54 

98 

1 

422 

933 

25, 108 

3, 173 

139 

445 

3 

32 

28 

31 

1,404 

2,427 

19 


2 

100 

2,874 

100 

311 

55 

108 

1 

473 

1,031 

27, 370 

3,604 

307 

869 

4 

35 

29 

33 

1,453 

4,343 

19 


2 


China .. 






3 

162 
10 
13 


3 

427 

16 

36 

1 

10 


100 




255 

6 

23 

1 

6 


10 


100 


Danzig, Free City of. 


100 


Denmark . . 


26 


Egypt. . 


55 


Estonia _ 




4 


93 


Ethiopia . 


1 


Finland . 


27 

43 

1,077 

202 

115 

197 

1 

2 

1 

1 

29 

1,247 


--- 

57 
2 

1 
24 


24 

41 

1, 128 

227 
52 

203 


51 

98 

2,262 

431 

168 

424 

1 

3 

1 

2 

49 

1,916 


83 


France.. 


33 


Germany. ._ 


100 


Great Britain and Northern Ireland 

Greece 


5 
100 


Hungary 


100 


Iceland . 


4 


India 




1 


35 
29 


Iran _ 


Iraq . . 




1 

20 

669 


33 
8 

75 


Ireland . 


Italy 


Japan 


19 



216 



DEPARTMENT OF STATE BULLETIN 

Quota Immigration Visa Statistics foe the Fiscal Yeab Ended June 30, 1939— Continued 
VISAS ISSUED against anntjal QUOTA — Continued 





Annual 
quota 


Preference visas 


Nonpref- 
erence 
visas 


Total 
quota 
visas 


Percent 


Country 


Relatives of 
American 
citizens 


Farmers 


Relatives 
of aliens 


Total 


of annual 
quota 
Issued 




236 
100 
100 
386 
100 
100 
100 
100 
100 
100 

3, 153 
100 
100 

2,377 

100 

50 

6,524 
440 
100 
377 
100 
100 
100 
100 
100 
252 

3,314 

1,707 
123 
100 
100 
100 
100 
226 

2,712 
100 
845 


23 




14 


37 


199 

4 


236 
4 


100 




4 
















52 




19 


71 


315 

30 

4 

3 


386 

30 

4 

3 


100 




30 












4 












3 
















































33 


7 


18 


58 


1, 141 


1, 199 


38 








2 

42 

8 

1 

754 

78 






2 

73 

18 

46 

1, 150 

175 


48 

378 

82 

4 

5,374 

197 


50 
451 
100 

50 

6,524 

372 


50 




23" 


31 
10 
45 
373 
97 


19 




100 




100 


Poland 


100 




84 








185 


1 


31 


217 


160 


377 


100 












2 


2 


6 


8 


8 












2 




1 


3 


63 


66 


66 


South- West Africa 






48 
24 
17 
50 




86 
10 
17 
9 


134 
34 
34 
59 


116 

317 

766 

64 


250 
351 
800 
123 


99 




11 




46 




100 






















Togoland (British) 
































Turkey - .. 


112 
123 


-- 


19 

55 


131 
183 


95 
2,400 


226 
2,583 


100 


Yap 


95 




76 




59 


135 


710 


845 


100 








153, 774 


4,926 


144 


3,545 


8,615 


50, 238 


58, 853 


38 







Nonquota Immigration Visa Statistics for the Fiscal Year Ended June 30, 1939 

NONQUOTA visas ISSUED — TRANSOCEANIC COUNTRIES 



Country of birth 


Relatives 

of 
American 
citizens 


Returning 
aliens 


Natives of 
Western 
Hemi- 
sphere 


Ministers 

and 
professors 


Students 


Alien 
women 
formerly 
United 

States 
citizens 


Total 


Czechoslovakia 


431 

89 

448 

440 

379 

112 

54 

2,629 

92 


4 
57 
94 
288 
26 
13 
38 
70 
19 


4 
1 
53 
-- 


65 
22 
297 
66 
29 
92 
3 
68 
10 


29 
57 
HI 
240 
8 
46 
59 
42 
23 


1 
3 
24 
3 
3 
2 
.. 

1 


530 


France 


232 


Germany .. 


975 


Great Britain and Northern Ireland 


1,090 


Greece 


445 


Hungary 


266 


Ireland 


154 


Italy.- 


2,715 


Norway..- 


146 



FEBBUABY 24, 1940 



217 



Nonquota Immigration Visa Statistics fob the Fiscal Year Ended June 30, 1939 — Continued 

NONQUOTA VISAS ISSUED — TRANSOCEANIC COUNTEBIS Continued 



Country of birth 



Natives of 
Western 
Hemi- 
sphere 



Allen 
women 
formerly 
United 

States 
citizens 



Poland 

Rumania 

Spain 

Sweden 

Turlsey 

Union of Soviet Socialist Republics. 

Yugoslavia 

Other quota countries 



616 

143 

72 

41 

97 

146 

210 

734 



10 

8 

29 

40 

12 

15 

4 

204 



122 

45 

30 

9 

5 

29 

15 

153 



37 
12 

7 
21 
66 
19 

6 
493 



Total 6,633 



931 



75 



1,060 



1,266 



786 
212 
138 
112 
170 
214 
238 
1,593 



10, 016 



NONQUOTA VISAS ISSUED WESTERN HEMISPHERE 





2 




79 

7 

61 

7,514 

7 

46 

183 

68 

613 

147 

50 

81 

27 

9 

69 

2,183 

371 

36 

135 

2 

47 

7 

129 




19 




100 




7 




3 
233 


6 
68 


58" 


20 
473 


._ 


90 




8 352 




7 


Chile 


3 

1 

1 

11 

1 


2 
7 
7 
19 

6 
6 

35 
1 
4 
2 


25" 
10 


29 
21 
18 
13 
1 
2 


_. 


80 




212 




95 


Cuba 


656 




149 




57 


El Salvador __ __ 




88 






16 
10 

7 

157 

9 

1 
3 


2" 


49 


Haiti 


1 


20 




79 




52 
12 


2 454 


Newfoundland 


403 
40 




3 


143 




2 


Peru 




5 

1 
32 


f 


8 

1 

37 




60 




1 

1 


10 




200 






Total 


325 


209 


11, 880 


85 


845 


9 


13, 353 


Aliens born in United States (including Virgin 
Islands and Puerto Rico) and aliens having 


54 


30 


290 


5 


39 


26 


444 






Total for aU countries - _ 


7,012 


1,170 


12, 245 


1,150 


2, 150 


86 


23 813 







Foreign Service of the United States 



FOREIGN SERVICE EXAMINATION 



[Released to the press February 231 

Tlie Department of State announces that a 
written exaniiniition for commission to the For- 
eign Service will be held commencing September 
16, 1940, at the following points : Atlanta, Bos- 
ton, Chicago, Cincinnati, Denver, New Orleans, 
New York, Philadelphia, St. Louis, St. Paul, 
San Francisco, Seattle, and Washington. 

The schedule of examinations will be similar 
to that followed in the examination of Sep- 
tember 18-21, 1939.' 

The oral examinations for candidates attain- 



• See Press Releases of March 4, 1939 (Vol. XX, No. 
492), p. 164. 



ing an average of 70 percent or higher on the 
•written examination will probably be held dur- 
ing the last 2 weeks of January 1941. The exact 
dates of these oral examinations will be an- 
nounced later. 

Applicants desiring to qualify for the For- 
eign Service must be specially designated for 
examination. Applications for designation are 
to be addressed to the Secretary of State and 
must be filed not later than 40 days before the 
date set for the written examination. No desig- 
nations for the examinations to be held Septem- 
ber 16-19, 1940, will be made after August 6, 
1940. 



-f -f ■♦■ -f -f -f -f 



PERSONNEL CHANGES 



[Released to tbe press Februiiry 24] 

Changes in the Foreign Service since February 
3, 19!fl: 

C. Porter Kuykendall, of Towanda, Pa., con- 
sul at Danzig, has been assigned as consul at 
Konigsberg, Germany. 

Cecil M. P. Cross, of Providence, R. I., con- 
sul at Paris, France, has been designated first 
secretary of embassy at Paris, and will serve 
in dual capacity. 

Harry M. Donaldson, of West Newton, Pa., 
vice consul at Havre, France, has been assigned 
as vice consul at Cherbourg, France. 

The assignment of William L. Krieg, of 
Newark, Ohio, as vice consul at Basel, Swit- 
zerland, has been canceled. Mr. Krieg has now 
been assigned as vice consul at Milan, Italy. 

Perry Laukhuff, of Mt. Vernon, Ohio, vice 
consul at Milan, Italy, has been designated 
third secretary of embassy and vice consul at 
Berlin, Germany. 



The assignment of M. Williams Blake, of 
Columbus, Ohio, as vice consul at Birming- 
ham, England, has been canceled. Mr. Blake 
has now been assigned as vice consul at Basel, 
Switzerland. 

The assignment of Carl F. Norden, of New 
York, N. Y., as vice consul at Warsaw, Poland, 
has been canceled. Mr. Norden has now been 
assigned as vice consul at Prague, Bohemia. 

Augustus Ostertag, of Pennsylvania, vice 
consul at Cherbourg, France, has been ap- 
pointed vice consul at Berlin, Germany. 

John A. Bywater, of Boston, Mass., vice 
consul at Danzig, has been appointed vice con- 
sul at Konigsberg, Germany. 

Fred E. Waller, of Washington, D. C, vice 
consul at Nantes, France, has been appointed 
vice consul at Paris, France. 

William N. Carroll, of North Carolina, vice 
consul at Southampton, England, has been ap- 
pointed vice consul at Birmingham, England. 



FEBEUARY 24, 1940 



219 



Charles E. Hulick, Jr., of Pennsylvania, 
clerk at Leipzig, Germany, has been appointed 
vice consul at Leipzig. 



John A. Lehrs, of Maryland, interpreter at 
Copenhagen, Denmark, has been appointed vice 
consul at Copenhagen. 



Treaty Information 



Compiled by the Treaty Division 



ARBITRATION AND JUDICIAL 
SETTLEMENT 

General Act for the Pacific Settlement of 
International Disputes 

The Netherlands 

In regard to the declaration made by Canada 
when notifying its adherence to the General 
Act, signed September 26, 1928, that it will not 
regard its adherence as covering disputes aris- 
ing out of events occurring during the present 
war, the Netherlands Government informed the 
Secretary General of the League of Nations on 
January 9, 1940, that in taking note of this 
declaration it is obliged to make the same reser- 
vation as that which it made in regard to the 
denunciation by various states of the Optional 
Clause of Article 36 of tlie Statute of the Per- 
manent Court of International Justice, namely, 
that it "reserves its point of view." 

Norway 

In regard to the declaration made by Aus- 
tralia when adhering to the General Act for 
the Pacific Settlement of International Disputes, 
signed September 26, 1928, the Secretary Gen- 
eral of the League of Nations states in a cir- 
cular letter dated January 11, 1940, that the 
Norwegian Government has informed him that 
it has taken note of the Australian Govern- 
ment's communication and is obliged to make 
the same reservations in regard thereto as it 
has made in regard to the denunciation by vari- 
ous states of the Optional Clause of Article 36 
of the Statute of the Permanent Court of Inter- 
national Justice (see the Bulletin of February 
i7, 1940, Vol. II, No. 34, p. 190). 



INTERNATIONAL LAW 

Convention Defining the Rights and Duties 
of States (Treaty Series No. 881) 

VeTiezuela 

The Director General of the Pan American 
Union informed the Secretary of State by a let- 
ter dated February 19, 1940, that the instrument 
of ratification by Venezuela of the Convention 
Defining the Rights and Duties of States, signed 
at Montevideo on December 26, 1933, was de- 
posited with the Union on February 13, 1940. 

According to the information of the Depart- 
ment the following countries have deposited in- 
struments of ratification of or adherence to 
the convention : United States of America, Bra- 
zil, Chile, Colombia, Costa Rica, Cuba, Domini- 
can Republic, Ecuador, El Salvador, Guate- 
mala, Honduras, Mexico, Nicaragua, Panama, 
and Venezuela. 

EDUCATION 

Convention Concerning Facilities for Educa- 
tional and Publicity Films 

Chile 

According to a letter from the Director Gen- 
eral of the Pan American Union dated Febru- 
ary 13, 1940, the instrument of ratification by 
Chile of the Convention Concerning Facilities 
for Educational and Publicity Films, signed at 
Buenos Aires on December 23, 1936, was de- 
posited with the Union on February 9, 1940. 
The instrument of ratification is dated December 
13, 1939. According to the information of the 
Department the following countries have de- 
posited instruments of ratification of this con- 



220 



DEPAKTMENT OF STATE RTTT.T.TCTTTT 



vention with the Pan American Union : Brazil, 
Chile, Costa Rica, Dominican Republic, El Sal- 
vador, Guatemala, Haiti, Honduras, Mexico, 
Nicaragua, Panama. Peru, and "Venezuela. 

EXTRADITION 

Supplementary Extradition Treaty With 
Guatemala 

A supplementary extradition treaty between 
the United States and Guatemala adding several 
crimes and offenses to those enumerated in the 
extradition treaty between the two countries of 
February 27, 1903 (Treaty Series No. 425), for 
which extradition may be granted, was signed at 
Guatemala City on February 20, 1940. 

OPIUM AND OTHER DANGEROUS 
DRUGS 

CMivention for the Suppression of the Illicit 
TraflBc in Dangerous Drugs, and Protocol 
of Signature 

France 

According to a circular letter fi-om the League 
of Nations dated Januaiy 30, 1940, the instru- 
ment of ratification by France of the Conven- 
tion for the Suppression of the Illicit Traffic in 
Dangerous Drugs, with Protocol of Signature, 
signed at Geneva on June 26, 1936, was deposited 
\\ith tlie Secretariat on January 16, 1940. 

When transmitting the instrimient of ratifica- 
tion the French Government stated that in rati- 
fying the convention its acceptance of the 
provisions of article 8 must be regarded as an 
exception and cannot be invoked as a precedent. 
At the same time it reserved the right to propose 
in due course a modification of these provisions. 

The French Goverimient also declared that it 
did not assume any obligations as regards its 
colonies or protectorates or the territories placed 
under its mandate. 

According to information received from the 
League of Nations the following comitries have 
deposited instruments of ratification of or ad- 
herence to the convention: Belgium, Brazil, 
Canada, China, France, Greece, Guatemala, 
Haiti, India, Rumania, and Turkey. 



CUSTOMS 
Convention for the Repression of Smuggling 

ChUe 

The Director General of the Pan American 
Union informed the Secretary of State by a 
letter dated February 13, 1940, that the mstru- 
ment of ratification by Chile of the Convention 
for the Repression of Smuggling, signed at the 
Pan American Commercial Conference, Buenos 
Aires, June 19, 1935, was deposited with the 
Union on February 9, 1940. The instrument of 
ratification is dated December 13, 1939. 

According to the information of the Depart- 
ment the following countries have ratified the 
convention: Brazil, Chile, Ecuador, and 
Uruguay. 

POSTAL 

Universal Postal Convention, 1939 

Greece 

The American Minister to Greece reported by 
a despatch dated January 18, 1940, that the 
Oficial Gazette No. 543 of December 15, 1939, 
published a decree law dated December 14, 
1939, whereby the Greek Government ratified 
the International Postal Convention signed at 
Buenos Aires on May 23, 1939, and the follow- 
ing acts which were signed on the same day: 
The Arrangement Concerning Letters and Par- 
cels of Declared Value; the Arrangement on 
Parcel Post; the Arrangement on Money Or- 
ders; the Arrangement on Postal Checks; the 
Arrangement on Collection Accounts; and the 
Arrangement on Subscriptions to Newspapers 
and Periodicals, together with the pertinent 
regulations of execution and final protocols 
aimexed thereto. 

Universal Postal Convention, 1934 

Ireland 

The Egyptian Minister at Wasliington in- 
formed the Secretary of State by a note dated 
February 19, 1940, that the instruments of rati- 
fication by Ireland of the Universal Postal Con- 
vention, signed at Cairo on March 20, 1934, and 



FEBEUARY 24, 1940 

the Arrangement Concerning Letters and Par- 
cels of Declared Value, signed on the same day, 
were deposited with the Egj^ptian Government 
on January 10, 1940. 

TELECOMMUNICATIONS 

International Telecommunication Conven- 
tion (Treaty Series No. 867) 

Norway 

According to notification No. 351, dated Feb- 
ruary 1, 1940, from the Bureau of the Interna- 
tional Telecommunication Union at Bern, a 



221 

communication was received on January 19, 
1940, from the Norwegian Government stating 
that it has approved the following regulations 
and protocols annexed to the International Tele- 
communication Convention of December 9, 1932, 
as revised at Cairo on April 4 and 8, 1939 : 

General Radio Regulations (revision of 

Cairo, 1938) 
Additional Radio Regulations (revision of 

Cairo, 1938) 
Telegi-aph Regulations and Final Protocol 

(revision of Cairo, 1938) 
Telephone Regulations and Final Protocol 

(revision of Cairo, 1938). 



For sale by the Superintendent of Documents. Washington, D. C. — Price 10 cents ----- Subscription price, 12.75 a year 

FDBLISHED WE££LY WITH THE APFBOVAL OF THE DIBECTOB OF IHH BUBBAU OF THB BUDGET 



THE DEPARTMENT OF STATE 



BULLE 



riN 



MARCH 2, 1940 
Vol. II: No. J 6 — Publication 1 4 40 



Qontents 




Commercial Policy: 

Statement by the Secretary of State before the Senate page 
Finance Committee 225 

Statement by Assistant Secretary Grady before the Sen- 
ate Finance Committee 232 

The American Republics and the Trade-Agreements Pro- 
gram : Address by Lynn R. Edminster 238 

EUKOFE : 

Contributions for relief in belligerent countries 245 

The American Republics: 

Extension of the American School of the Air to the other 

American republics : Remarks by Laurence Duggan . . 252 
Dominican Republic : Anniversary of independence . . . 253 
Board of Inquiry for the Great Lakes Fisheries, LTnited 

States and Canada 254 

General : 

Address by Assistant Secretary Berle 254 

American Diplomatic Defense: Does the State Depart- 
ment Adequately l*rovide It ? : Address by Assistant 

Secretary Grady 260 

Departmental Service : 

Division of Commercial Afl'airs 268 

Death of Robert C. Bannerman 268 

Publications : 

Publication of Foreign Relations of the United States: 

The Landng Papers, 1911,-1920, Volume II 270 

lOver^ 



UL 4 SUPET!vr--rNT OF DOCUMENTS 



Treaty Information : 
Arbitration and Judicial Settlement : 

General Act for the Pacific Settlement of Interna- page 

tio;ial Disputes 271 

Permanent Court of International Justice 272 

Restriction of War : 
Convention Relating to the Treatment of Prisoners of 

War (Treaty Series No. 846) 272 

Education : 
Proces- Verbal Concerning the Application of Articles 
IV, V, VI, VII, IX, XII, and XIII of the Conven- 
tion of October 11, 1933, for Facilitating the Inter- 
national Circulation of Films of an Educational 

Character 272 

Health : 
Convention Modifying the International Sanitary 

Convention of June 21, 1926 273 

Aviation : 
Convention for the Unification of Certain Rules Re- 
lating to Damages Caused by Aircraft to Third 
Parties on the Surface, 1933, and Additional Proto- 
col, 1938 273 

Convention for the Unification of Certain Rules Re- 
lating to Assistance and Salvage of Aircraft or by 

Aircraft at Sea 273 

Customs : 
Convention Concerning Exemption from Taxation for 
Liquid Fuel and Lubricants Used in Air Traffic . . . 273 
Fisheries : 
Exchange of notes with Canada establishing a Board 

of Inquiry for the Great Lakes Fisheries 273 

Labor : 

Convention Concernuig Statistics of Wages and Hours 
of Work in the Principal Mining and Manufactur- 
ing Industries, Including Building and Construction, 
and in Agriculture 275 



Commercial Policy 



STATEMENT BY THE SECRETARY OF STATE BEFORE THE SENATE 

FINANCE COMMITTEE ' 



[Released to the press February 26] 

Mr. Chairman, Members of the Finance 
Committee: The hearings which begin today 
before your Committee relate to a piece of 
legislation which is of extraordinary impor- 
tance to our Nation at this time. It has a direct 
and vital bearing on our domestic economic 
prosperity and on world peace. 

When I appeared before the Committee on 
Ways and Means, I presented a formal state- 
ment dealing comprehensively with all impor- 
tant phases of the problem,^ and I shall not now 
take your time going over the ground thus 
already covered. However, I should like to 
make some additional remarks, especially with 
reference to some points which were raised in 
recent discussions. 

I am glad to note that there is now scarcely 
any inclination anywhere to question the prop- 
osition that adequate foreign trade is indis- 
pensable to full and stable prosperity for our 
Nation, which requires the fullest possible de- 
velopment of both the domestic and the foreign 
markets. There is overwhelming evidence to 
show that, when our exports shrink seriously, 
the country's production, trade, prices, values, 
employment, incomes, and, therefore, purchas- 
ing power are adversely affected. This is true 
of agriculture, manufacturing industry, trans- 
portation, mining, and all other phases of our 
economic life. There is also overwhelming evi- 
dence to show that all these determining fac- 



' Delivered February 26, 1940. 

'See the Bulletin of January 13, 1940 (Vol. II, No. 
29), pp. 29-38. 



tors of our national prosperity are favorably 
affected by an expansion of exports. We are 
living in a period in which our vast home 
market must be supplemented by foreign 
markets for our ever-increasing surpluses. 
Satisfactory disposition of such surplus pro- 
duction has become an indispensable factor in 
our permanent progress and our sound and 
balanced prosperity. Of equal significance is 
the growing realization in our country of the 
close connection between trade and peace. 

Let me recall briefly the background against 
which 'the trade-agreements program was en- 
acted by the Congress 6 years ago. Trade be- 
tween countries, involving the bread and butter 
of millions and affecting the political stability 
and contentment of millions, declined enor- 
mously. The peoples of the world had traded 
with each other in 1929 to the amount of 69 
billion dollars. By 1932 this trade had fallen 
to 27 billions. This meant that millions of 
workmen were out of work, and their families 
were in desperate need ; millions of farmers and 
producers of other raw materials were unable 
to sell the results of their labor except at a 
miserable price. Governments were compelled 
to make enormous relief expenditures. They 
resorted to any type of measure which promised 
to relieve this unemployment and distress irre- 
spective of its effects on the rest of the world. 
In other words, the background of circum- 
stances leading to the enactment of the trade- 
agi-eements program was a most disturbing 
and rapid falling apart of the commercial 
and financial structure of the world, caused in 

225 



226 

large measure by tlie ever-rising barriers to 
trade raised by all countries, in which course 
our own Nation was, unfortunately, an out- 
standing leader. 

All countries were stricken, and few more 
seriously than the United States. Within 3 
years, our exports declined from 5.2 billion dol- 
lai-s to 1.6 billions. This loss of more than 3.5 
billion dollai-s' worth of export business spelled 
havoc and tragedy throughout the land. Of 
itself, it would l^ne been enough to throw out 
of gear the whole machinery of our national 
economic life. Combined with other factors, 
it brought this country face to face with the 
gravest economic emergency in our national 
history. 

Between 1929 and 1932, inclusive, national in- 
come fell from $80,800,000,000 to $39,500,000,000 ; 
cash farm income, from $11,200,000,000 to $4,- 
700,000,0(X) ; nonagricultural employment alone 
from 36,200,000 to 27,800,000; wages and salaries 
in maimfacturing industries from $15,800,000,- 
000 to $7,400,000,000; wholesale prices from a 
level of 95.3 to a level of 64.8. Agriculture was 
bankrupt; industry was bankrupt; and even 
the banks wei-e bankrupt, hundreds of them 
liaving failed. 

That emergency could not be met fully and 
successfully, unless, at the same time that we 
were putting into effect far-reaching and neces- 
sary domestic measures, effective means were 
also found to restore our foreign trade. This 
could only be done through reciprocal reduction, 
on the basis of equal treatment, by us and by 
other countries of tlie unreasonable and exces- 
sive trade bairiers which were strangling com- 
merce. Since other governments possessed the 
means of prompt action in dealing with trade 
matters, it was essential that our Government 
devise for itself an instrument of similar action. 

This was done through the enactment of the 
trade-agreements program, which has enabled 
the executive branch of the Government to 
engage, within the limits of policy strictly 
prescribed by the Congress, in vigorous action 
for tlie restoration of our foreign trade. In 
that vital task, working against great difficul- 



DEPARTMENT OF STATE BULLETIN 

ties, we have achieved a gratifying measure 
of success. During the period of operation of 
the trade-agreements program, our exports ex- 
panded markedly, in sharp contrast with their 
steep decline during the period of operation 
of the Hawley-Smoot embargoes. This revival 
of export business has been an important factor 
in bringing about the recovery which has oc- 
curred in agriculture, in industry, in employ- 
ment, in prices, in values, in the national in- 
come, and all the other elements of our national 
prosperity. 

Between 1932 and 1939, national income rose 
from $39,500,000,000 to about $70,000,000,000; 
cash farm income, from $4,700,000,000 to $7,- 
625,000,000; nonagricultural employment from 
27,800,000 to 33,700,000 ; wages ami salaries in 
manufacturing industries, from $7,400,000,000 
to $12,600,000,000; wholesale prices from a level 
of 64.8 to a level of 77.1. 

In enacting the trade-agreements program, 
the Congress was not making a definitive de- 
termination of a long-range and permanent 
tariff and commercial policy for this country. 
What was created in 1934 was a temporary 
agency, designed to meet the imperative needs 
of an abnoi-mal situation and calculated to 
aid in bringing about conditions in which a 
permanent policy would become feasible. 

Grave emergency conditions, resulting from 
the tragic errors of the past, existed in many 
phases of life, here and abroad. The trade 
and other economic policies of the period fol- 
lowing the World War were, in effect, instru- 
ments of intense and destructive economic 
warfare. Largely under their influence, there 
occurred a growing weakening of social sta- 
bility within nations and an ominous deterio- 
ration of international morality and of po- 
litical relations among nations. There was 
no hope of arresting these fatal trends, unless 
friendly and mutually beneficial trade rela- 
tions were to supplant the existing system of 
economic warfare. 

The trade-agreements program enabled us 
not only to promote directly our domestic re- 
coverj^ through an expansion of our foreign 



MARCH 2, 194 



227 



commerce, but also to take a position of lead- 
ership in efforts to check the spread of suicidal 
economic nationalism and to build a firm 
foundation for the kind of international trade 
relations which are indispensable to the mahi- 
tenance of enduring peace — without which 
there can be no sustained prosperity for our 
Nation or any nation. 

It was not to be anticipated that the immense 
task involved could be accomplished overnight. 
The destructive forces released by the disas- 
trous policies of the past wei-e too powerful 
to be overcome easily or swiftly. Substantial 
progress in this direction was made since 1934. 
That progress has been interrupted by tlie 
outbreak of new widespread wars. Whether 
what has already been accomplished will be 
completely wiped out or whether it will, after 
the termination of hostilities, serve as a foun- 
dation and a powerful impetus for further 
progress will depend, in a decisive measure, 
upon what our country does now. 

Most of those who oppose the extension of 
the Trade Agreements Act propose no substi- 
tute for it, except a return — open or dis- 
guised — to the Hawley-Smoot regime. That 
would be where we would find ourselves if 
the act were permitted to lapse or if its effec- 
tiveness were to be destroyed by the adoption 
of crippling amendments. 

It requires no imagination, but only recol- 
lection of what happened under the Hawley- 
Smoot Act in 1930-32, to visualize what would 
be the result of a return to a policy of virtual 
embargoes and attempted self-containment at 
any cost. Our people are not likely to forget 
how, 10 years ago, the proponents of ever- 
higher tariffs made solemn promises to the 
farmers, to the workmen, to the businessmen, 
to the Nation as a whole, that increasing pros- 
perity would follow the prohibitive tariff 
schedules which they were placing on our 
statute books — nor how those promises were 
fulfilled in bankruptcy for the farmer, in stag- 
gering unemployment for labor, in a collapse of 
prices and values for the businessman, in dis- 
tress and despair for the entire Nation. Our 
people, are not likely to forget the contribution 



which the enactment of the 1930 tariff made to 
the intensification of economic warfare among 
nations, to the growth of trade barriers, to 
vicious spirals of resentment, ill will, and 
retaliation. 

Other opponents of the trade-agreements 
program are putting forward proposals which, 
in the guise of an allegedly "more realistic" 
approach to the whole problem of foreign 
trade, would go beyond the extremes of the 
Hawley-Smoot policy and would commit this 
country to the use of exchange controls, quotas, 
and all the otlier devices which in recent years 
have disrupted and retarded international 
trade. To abandon the trade-agreements pro- 
gram and to substitute for it a system of this 
kind would be to destroy the only policy which 
in recent years has offered effective resistance 
to a spread of these destructive practices. It 
would be equivalent to committing our Nation 
to a course of far-reaching economic regimenta- 
tion, since the experience of other nations 
shows clearly that, in an effort to make extreme 
trade controls function effectively, regimenta- 
tion has to be constantly extended to other 
phases of business activity and of economic life 
in general. It would be a starkly realistic ap- 
proach, not to an effective promotion of our 
foreign trade, but to governmental control over 
business activity on a scale never before at- 
tempted in this country, and to a policy of 
plunging this country into destructive eco- 
nomic warfare — from which no nation ever 
emerges the gainer. 

The trade-agreements program has enabled 
us to expand our foreign trade without sub- 
jecting it to the strait jacket of extreme govern- 
ment control. Under it, our trade has in- 
creased far more markedly than that of any 
other of the commercially important nations. 

The program has been de\ased and carried out 
as a means of creating conditions in which free 
enterprise can function most effectively. Re- 
version to a policy of extreme protectionism or 
substitution for the trade-agreements program 
of a policy under which we would adopt all the 
instruments of economic warfare that have been 
so disastrously prevalent in the recent past, 



228 



DEPARTMENT OF STATE BULLETIN' 



■would not only wipe out our recent trade gains 
but would impose upon our people a further na- 
tional loss of staggering proportions. Our 
Government would be compelled to adopt most 
costly and difficult measures of relief and ad- 
justment and to regiment the country's economic 
activity. And the most astonishing thing is 
that courses of action which must inevitably 
lead to these results are proposed and advocated 
by the very people who like to regard themselves 
as the real proponents of free entei-prise and 
nonintervention of government in economic life. 

This is the crux of the whole issue. The ques- 
tion of the survival or disajDpearance of free 
enterprise in our country and in the world is 
bound up with the continuation or abandonment 
of the trade-agreements program. 

The record of what has been accomplished 
under the trade-agreements program toward 
opening and enlarging trade opportunity for all 
groups of our producers in both the foreign and 
the domestic markets is an open book. So much 
has already been said on this subject that I shall 
refrain at this stage from going into details on 
that score. My associates and I will be glad to 
furnish you with the fullest data. But I should 
like to raise this question: Who would be 
helped and who would be hurt by the abandon- 
ment of the trade-agreements program or by 
the adoption of the proposals which have been 
made to limit its scope and impair its effective- 
ness? 

Would our agriculture be helloed or hurt by 
abandonment or impairment of the trade-agree- 
ments program? 

In the agreements which have been nego- 
tiated, important foreign markets have been 
kept open or expanded for our producers of 
lard and other liog products; cotton; tobacco; 
wheat and other grains and grain products; 
fresh, canned, and dried fruits and vegetables; 
and others. Surely, these producers would not 
be helped— on the contrary, they would be 
gi-ievously injured— if they were to be de- 
prived of these advantages. 

Abandonment of the program would be hurt- 
ful to them in several very important ways, 



First, it would lose for us the additional 
leverage which the agreements now give us in 
defending the interests of our exporters in con- 
nection with the trade dislocations and distor- 
tions growing out of war conditions. Second, 
it would sacrifice the immediate and uninter- 
rupted export benefits we are obtaining in mar- 
kets not seriously disturbed by the war situa- 
tion. Finally, it would involve sacrifice of the 
many ultimate advantages that the concessions 
would give to us in reexpanding our shipments 
to war-disturbed markets when hostilities 
cease. 

In the trade agreements we have made some 
limited reductions in duties on certain prod- 
ucts. So carefully have these adjustments been 
made and so painstakingly have they been safe- 
guarded wherever need for safeguards was 
demonstrated, that these duty reductions have 
not inflicted any injury on any group of pro- 
ducers. No satisfactory evidence to the con- 
trary has been brought forward — for the 
simple reason that no injury to our producers 
has, in fact, occurred. On the contrary, there 
is ample evidence to show that these very pro- 
ducers would be hurt, not by the continuation, 
but by the abandonment of the progi-am. 

These producers, as all producers, are vitally 
concerned with the state of our domestic mar- 
ket. They can sell their output at remunera- 
tive prices only when the purchasing power of 
our people is at a sufficiently high level. But 
our national purchasing power and, therefore, 
the state of our domestic market are vitally de- 
pendent upon the condition of our foreign 
trade. 

In the course of our negotiations with other 
countries, we find, on occasion, that moderate 
and adequately safeguarded reductions of duties 
on some commodities are sufficiently attractive 
to other countries to enable them, in return, to 
make valuable concessions for our exports, and 
thus help us to expand our domestic market. 
Let me refer again, as a good illustration of 
this, to the assertions of alleged injury which 
have been heard in connection with the moder- 
ate and carefully safeguarded duty adjust- 
paents on some dairy and cattle products. 



MARCH 2, 1940 



229 



Look at these facts : The cash income of the 
dairy industry, which had fallen, between 1929 
and 1932, from $1,844,000,000 to $991,000,000, 
rose, by 1938, to $1,398,000,000. The cash in- 
come of the cattle industry, which had fallen 
from $1,495,000,000 in 1929 to $621,000,000 in 
1932, rose, by 1938, to $1,144,000,000. The 
prices of dairy and cattle products have gone 
up substantially in recent years. 

Surely, our dairy and cattle producers would 
not be helped, if we were to restore to the 
Hawley-Smoot levels the few duties that have 
been reduced, and, in doing so, wipe out the 
concessions secured for our exports. Surely, 
these producers would be among those most 
hurt by the resulting painful contraction of 
the domestic market. Surely, they have not so 
soon forgotten their experience from 1929 to 
1932. 

Would our manufacturing industries be 
helped or hurt by abandonment or impairment 
of the trade-agreements progi-am ? 

The problem in this field is fundamentally 
the same as that with respect to agriculture. 
ITiis country is the world's largest) exporter of 
manufactured goods. In the trade agreements 
already concluded, important foreign markets 
have been kept open or enlarged for the pro- 
ducers of automobiles and trucks; tractors; 
agricultural, industrial, and electrical ma- 
chinery; cash registers; typewriters and vari- 
ous office appliances; rubber tires and other 
products; cotton and other textile products; 
lumber, wood manufactures, and paper prod- 
ucts; hides and leather products; petroleum 
products; glass and glass products; iron and 
steel products; copper and copper manufac- 
tures; and many others. 

Surely, these producers would not be helped 
if they werei to be deprived of the valuable ad- 
vantages which have been secured for them. 
Surely, they would not be helped if we were 
now to give up the means provided by the trade 
agreements for defending their interests 
abroad. 

Nor would the industries with respect to 
whose products duty reductions have been 
made in the trade agreements profit by the 
abandonment of the program. They might de- 



rive short-sighted satisfaction from seeing 
duties on their products restored to the Haw- 
ley-Smoot levels, but they would pay for this 
doubtful satisfaction with a decline of their 
business activity, which would inevitably re- 
sult from a return to the embargo policies of 
the early thirties. 

And labor — would labor be helped or hurt by 
the abandonment or impairment of the trade- 
agreements program? 

Labor has just as direct and definite a stake 
in foreign trade as has any other group of our 
population. The state of employment and the 
level of wages obviously depend on the volume 
of business activity. Wlaen foreign markets 
decline, the result is increased unemployment 
and lower wages for those employed in the ex- 
porting industries. Wlien the domestic market 
contracts as a result of loss of foreign markets, 
the results are still more unemployment and 
still lower wages throughout the economic 
system. 

With the domestic market amply safe- 
guarded, as it has been under the trade-agree- 
ments program, labor has been a direct gainer 
from the increase of our exports of manu- 
factured goods. Such exports rose from 
$624,000,000 in 1932 to $1,523,000,000 in 1938. 
At the same time, our dutiable imports of 
finished goods were $170,000,000 in 1932 and 
only $232,000,000 in 1938. 

The trade-agreements progi'am has increased 
employment mainly in industries that pay 
wages well above the average for American 
manufacturing industry. In a number of our 
most important industries, the exports to 
countries that have made concessions on the 
products of such industries account for a far 
greater percentage of increase in employment 
than the exports to other countries. 

I should now like to touch briefly upon two 
questions of procedure which have been raised 
in connection with the trade-agreements pro- 
gram. The first relates to the most-favored- 
nation principle ; the second, to the functions of 
the Congress in connection with the program. 

Would our foreign trade be helped or hurt 
by the abandonment on our part of the most- 
favored -nation principle ? 



230 

The importance of that principle to us arises 
from the simple fact that most-favored-nation 
treatment, or the rule of equality, is the only 
practical and effective means of safeguarding 
our exports from destructive discrimination on 
the part of other countries, and of making pos- 
sible the maximum recovery of trade through 
promotion of triangular and multilateral flow of 
commerce. This fact has long been recognized 
in our country, as well as the fact that we can- 
not secure such treatment for our exports, unless 
we are prepared, in return, to grant it to other 
countries. 

It was in recognition of these basic facts that 
President Harding and Secretary of State 
Hughes made the favored-nation principle in 
its unconditional form an integral part of our 
commercial policy. It was in recognition of 
these same facts that the principle was in- 
cluded in the Trade Agreements Act and has 
been applied in the carrying out of the trade- 
agreements program. 

When we grant most-favored-nation treat- 
ment to the country with which we conclude a 
trade agreement, we receive in return an assur- 
ance of similar treatment. When we extend to 
other countries the benefit of the duty adjust- 
ments made in a particular agreement, we do so 
on explicit condition that these other countries 
give our trade substantially the same type of 
treatment. We reserve the right to withhold or 
withdraw these benefits from countries which 
do not give our trade such treatment. The re- 
sult so far has been that the volume of our 
exports thus safeguarded from serious discrim- 
ination has been several times greater than the 
value of our imports on which we have gener- 
alized concessions made in the trade agreements. 

Had we neglected to provide for our trade the 
safeguards against adverse discriminations 
abroad, which can be effectively assured only 
through the use of the rule of equality under 
the most-favored-nation principle, had we failed 
to do everything in our power to strengthen this 
necessary means of promoting the increase of 
world trade, criticism directed against us on 
this score would have been understandable. 
Instead, we are being criticized for steadfastly 



DEPARTMENT OF STATE BULLETIN 

insisting upon these necessary safeguards, 
abandonment of which would subject our com- 
merce to the constant danger of finding itself 
hopelessly handicapped in foreign markets. 

I come, finally, to this question : Would our 
foreign trade and our national interest be 
helped or hui't if the Trade Agreements Act 
were so amended that individual agreements be 
made subject to Senate ratification or congres- 
sional approval? 

Judicial opinion is uniform to the effect that 
both the delegation of authority of the kind 
contained in the Trade Agreements Act and 
the practice of concluding executive agree- 
ments are entirely consonant with our estab- 
lished constitutional practice. Over one thou- 
sand executive agreements on a large variety of 
subjects have been concluded in the course of 
our history. It seems eminently clear that 
trade agreements shoidd not be regarded as 
treaties requiring Senate approval. You will 
find in the recent hearings of the Ways and 
Means Committee a thorough brief on the mat- 
ter by the Legal Adviser of the State Depart- 
ment, Mr. Hackworth. 

In the Trade Agreements Act, the Congress 
retained — as it should at all times — definite and 
basic control over tariff policy. It carefully 
prescribed the policy, the methods, and the lim- 
itations of the trade-agreements program and 
entrusted to the Executive the duty and re- 
sponsibility of administering and carrying into 
effect the provisions of the act. In proceeding 
on tliis basis, the Congress recognized fully that 
the needs of the abnormal and rajjidly chang- 
ing conditions with which we have been faced 
require a means of prompt and effective action 
at a time when all other important nations 
possess such means of action. Trade channels 
today shift or are shifted more rapidly than 
ever before. If we are not in a position to act, 
with relative speed and certainty, to protect 
our trade opportunities in other countries and 
to adjust, as circumstances may require, the 
ti'ade opportunities we afford other countries, 
our trade will inevitably be handicapped to our 
own disadvantage. 



MABCH 2, 1940 



231 



The experience in connection with the nego- 
tiation of the 22 agreements that have been 
concluded offers an ample proof that the 
method we have pursued has served us well as 
a means of effective action; and that the au- 
thority under the Trade Agreements Act has 
been exercised with caution and moderation 
and with strict regard not only to the national 
interest, but also to the needs and problems of 
the individual branches of agriculture and in- 
dustry directly involved. 

The only result of the requirements that in- 
dividual trade agreements be made subject to 
congressional approval or Senate ratification, 
under existing conditions, would be to make 
the program entirely unworkable. That would 
inevitably hurt our foreign trade, and, through 
trade, our Nation's economic well-being. 

We are now in a period when, as a result of 
the new and widespread wars, the need for 
means of prompt and effective action on the 
part of the Government in the promotion and 
defense of our foreign commerce is even more 
imperative than it has been hitherto. We are 
in a period in which our economic policies and 
action may have a determining influence upon 
the developments, which, after the cessation of 
hostilities, will shape the future world. 

If we were now to abandon the program, we 
would reduce to practically nothing the effi- 
cacy of the existing trade agreements as a 
means of safeguarding our exports from the in- 
roads of wartime restrictions. The need for 
keeping alive the principles which underlie the 
trade-agreements program is crucial now, dur- 
ing the war emergency, and will be of even 
more decisive importance after the war. Even 
a temporary abandonment of the program now 
would be construed everywhere as its perma- 
nent abandonment. Unless we continue to 
maintain our position of leadership in the pro- 
motion of liberal trade policies, unless we con- 
tinue to urge upon others the need of adopting 
such policies as the basis of post-war economic 
reconstruction, the future will be dark indeed. 
The triumph or defeat of liberal trade policies 
after the war will, in large measure, be de- 
termined by the commitments which the na- 

214456 — 10 2 



tions will assume between now and the peace 
conference. 

At the termination of hostilities, there will be 
an unprecedented need throughout the world 
for vastly increased production of useful goods 
of every kind. Only if this vital need is met 
can our country and all countries hope for 
full employment and higher living standards. 
But production, employment, and living stand- 
ards cannot be restored and expanded unless 
the nations decide from the outset to direct 
their policies toward as rapid as possible a re- 
establishment of mutually beneficial interna- 
tional trade. Otherwise, the economic life and 
the political stability of the world after this 
war will rest upon even more precarious foun- 
dations than those upon which they rested after 
the last war. 

Had the nations of the world, including our 
own, followed at that time commercial policies 
conducive to the fullest practicable develop- 
ment of mutually beneficial international com- 
merce, world trade would undoubtedly have 
expanded on a healthy basis far beyond the 
limits actually attained, and a foundation 
would have been laid for stable economic pros- 
perity for all nations. Instead, the nations 
sought escape from their difficulties in con- 
stantly creating greater barriers to trade, the 
effects of which were obscured for a time by 
the unhealthy stimulation of reckless borrow- 
ing and lending of the twenties. But the 
ravages of the great depression, the years of 
only partial recovery which followed, and 
finally the supreme tragedy of the new wars 
have brought retribution for the mistakes and 
follies of the first decade after the World War. 

Must all this be repeated again, perhaps in 
an even more acute form, after the present 
war? That may well be the case if we now 
turn our backs upon the policy which, under 
our leadership, has offered in recent years the 
only hope of promoting trade among nations 
in 3uch a way as to rebuild the foundations of 
economic prosperity within nations and of 
stable peace among nations. Were we to do 
this we would inflict upon ourselves and upon 
the world an incalculable injury. 



232 

After the World War, through the policies 
which we then pursued, we helped to create 
a situation in which the entire economic struc- 
ture of the world rested upon shifting sands, 
with notliing in sight but inescapable disaster. 
The policy wliich we have pursued for the past 
6 years, if we only have the wisdom to con- 
tinue it, will enable us to place the whole weight 
of our country's influence behind a determined 
effort — in which, I am sure, we shall have the 
cooperation of other nations — to rebuild inter- 
national relationships in such a way that our 
Nation and all nations can prosper and be at 
peace. 

(Released to the press February 26] 

Following is an excerpt from the te3timony 
of the Secretary of State before the Senate 
Finance Committee on February 26, 1940 : 

Senator Capper: "Mr. Secretary, I come 
from a gi-eat wheat-producing State which pro- 
duces more wheat than any other State. They 
are suffering and have been for several years 
from the problem of the surplus. ... I would 
like to give my folks the information and 
the facts as to what these trade agreements have 



DEPARTMENT OF STATE BULLETIN 

done as negotiated by your Department which 
will benefit directly the wheat growers of our 
country who are suffering from the 'surplus 
problem and have been in the past." 

Secretary Hull: "Here is the message that 
I would be glad if you would send to the wheat 
farmers of Kansas. When the delegates of the 
British Empire convened at the Ottawa Confer- 
ence in 1932, they were in a very bitter state of 
mind against us. Up to that time, our wheat was 
allowed to come into the great British market 
on an equality with wheat from Canada and 
the other countries of the British Empire. 
The Ottawa Conference said, 'We will put a 
6-cents-a-bushel differential or discrimination 
on American wheat, go that it will have to pay 
6 cents above Canada and these other coun- 
tries of the Empire to get into the British mar- 
ket.' After long and earnest effort, we got 
that 6 cents removed through the trade agree- 
ment with Great Britain and have gotten the 
wheat farmers of Kansas back into the great- 
est market in the world on an equality with 
Canada and the comitries in the British 
Empire." 



■f -f >>--♦■ -f -f 



STATEMENT BY ASSISTANT SECRETARY GRADY BEFORE THE SENATE 

FINANCE COMMITTEE^ 



[Released to the press February 27] 

Mr. Chairman and Members of the Com- 
MrrTEE: I shall endeavor to show my appre- 
ciation of the privilege of appearing before 
you by making my remarks brief and to the 
point. Your Committee, in view of its previ- 
ous hearings in 1934 and 1937, is well 
ac(iuainted with the essentials of the trade- 
agreements program which the bill now under 
consideration proposes to continue. The 
Secretary of State has set forth the significance 
of this program to our present situation and 
the important reasons calling for its con- 
tinuance. 



'Delivered Febninry 27, 1940. 



It seems to me therefore that I can best 
contribute to your purpose by answering such 
questions as you may have regarding any as- 
pect of the subject. My statement will there- 
fore be devoted mainly to a few remarks on 
certain aspects which I consider warrant some 
special mention. 

Together with the widespread growth of 
support in all directions for this program, 
there has occurred a notable change in the 
character of the general opposition which 
continues from some quarters. It now seems 
almost universally recognized that we must 
have a positive foreign-trade program of this 
sort. Objection of a general nature is now 



MARCH 2, 1940 



233 



confined largely to the results and methods 
of the particular program whicli has been in 
operation for nearly 6 years. This objection 
is based principally on two contentions : First, 
that this program has accomplished no bene- 
ficial results for our export trade, but, on the 
other hand, has caused harm to domestic in- 
dustries; secondly, that it is not the proper 
procedure. I propose to deal briefly with each 
of these contentions. 

Those who claim that the 22 trade agree- 
ments negotiated with foreign countries have 
brought no benefits to our export trade are 
generally to be found among those who also 
claim that these agreements have injured cer- 
tain domestic producers by unduly stimulating 
our imports. This places them in a somewhat 
unenviable position from the point of view of 
logic and consistency, since it means that they 
are contending, at one and the same time, that 
on the one hand concessions obtained from 
foreign countries in the form of tariff reduc- 
tions or enlargements of quotas for American 
products do not result in stimulating sales of 
these products in those countries, but that on 
the other hand comparable concessions whicli 
we have granted do result in stimulating ex- 
cessive imports into our markets. 

Without dwelling further on this curious 
contradiction, I would like to comment upon the 
general character of the statistical methods by 
which these contentions are supported. Our 
trade with the world is subject to such a great 
variety of factors as to make the accurate 
measurement of any single influence, such as 
the trade agreements we have negotiated, an 
intricate and difficult task. 

There is, however, a clear and simple distinc- 
tion to be drawn between two methods of 
statistical analysis. One method is an en- 
deavor to ascertain objectively from the facts, 
in what measure the indications of common 
sense are supported. On the other hand it is 
also possible, by sleight-of-hand statistics, to 
make it appear that common sense is wrong. 

The facts amply support the common-sense 
belief that where excessive barriers to trade are 
reduced, a healthy stimulus to trade may be 



expected. This conclusion has been checked 
and rechecked by using various appropriate 
statistical approaches and by bringing our cal- 
culations up to date whenever new data have 
become available. 

I wish to present to the Committee for in- 
clusion in the record, several detailed exhibits 
and will confine my remarks to a brief enu- 
meration of the main conclusions shown by 
these exhibits. These are as follows : 

Exhibit I shows that our exports to the coun- 
tries with which we have made trade agree- 
ments have, in the aggregate, increased about 
twice as fast as our expoits to other countries; 
comparing our exports for the 2-year period 
1938-39 with the 2-year period 1934-35, the in- 
crease to trade-agreement countries was 475 
million dollars or 62.8 percent and to other 
countries 314 million dollars or 31.7 percent. 

[Exhibit I : Results Under the Reciprocal- 
Trade-Agreements Program — from Gommfft'ce 
Reports, Feb. 17, 1940, and Jan. 20, 1940.] 

Exhibit II shows that our exports to the 
principal individual countries with which we 
have made trade agreements have in nearly all 
cases shown a substantially greater rate of in- 
crease than our exports as a whole; thus our 
exports to Canada between January 1936 and 
October 1939 reached an annual average value 
of 47 percent above that for 1934-35, as com- 
pared with 35 percent for our total exports in 
the same periods; as you will note from the 
table on the last page of this exliibit, this was 
by no means the most striking example out of 
the 10 countries covered by this analysis. 

{Exhibit II: Pre-Agreement and Post- 
Agreement Trade of the United States With 
the Principal Countries With Wliich Trade 
Agreements Were Made Before 1937 — United 
States Tariff Commission, Jan. 1940.] 

Exhibit III shows that the share which we 
have supplied of the total imports of trade- 
agreement countries has shown a marked in- 
crease, both in the aggregate and for most of 
them taken separately, and that this share has 
increased in greater measure than the increase 
in our share of the imports of other countries. 
As pointed out in the second paragraph of the 



234 



DEPAKTMENT OF STATE BULLETIN 



explanatory statement in this exhibit, the share 
which the United States supplied of the total 
imports of the 16 countries with which trade 
agreements were in effect before January 1, 
1938, increased from 12.2 percent in 1933 to 19.7 
percent in 1938, as compared with an increase 
from 12.1 to 14.5 percent in our share of the 
imports of the 20 most important countries 
with which trade agreements were not in ef- 
fect by January 1, 1938. This is a rate of in- 
crease of 61.5 percent for the 16 trade-agreement 
countries as comjjared with 19.8 percent for the 
20 others. 

{Exhibit III: United States Increases its 
Share in Trade of Trade-Agreement Coun- 
tries — from Commerce Reports, Feb. 10, 1940.] 

Exhibit IV is an analysis of our exports to 
Canada, which compares those that benefited by 
reduced Canadian import duties with those that 
did not. As pointed out in the first paragraph 
of this statement, in the 3 years during which 
the first trade agreement with Canada was in 
effect, Canada's imports of our products on 
which reductions in Canadian import duties re- 
sulted from the agreement averaged 58.2 per- 
cent higher than in the year before the agree- 
ment, as compared with an average of only 
22.1 percent for products on which no such 
reductions were made. 

[Exhibit IV: Trade- Agreement Products 
Show the Largest Percentage Gain in Canadian 
Imports From the United States— Department 
of State, Press Eclease No. 8, Jan. 6, 1940.] 

I hope that what I have said will serve to 
make clear to you how we have examined the 
subject from this side and from that, front 
and back, turned it upside down and looked in- 
side of it, to see if we have been correct in 
believing what common sense tells us, that the 
effect of the concessions obtained in these trade 
agi-eements is to encourage our export trade. 

Nevertheless oUr critics have tried, by sta- 
tistics, to prove that common sense is wrong. 
They have selected statistics to prove that white 
is not white but some shade or other or black. 
I should like to refer to one or two examples 
which are a matter of public record. 

An attempt has been made to show, by an 
exclusion of certain countries from the calcu- 



lations, that exports to trade-agreement coun- 
tries increased no more rapidly between 1934 
and 1938 than exports to other countries. • This 
attempt is based on the exclusion from the non- 
agreement group of those very countries which 
have most actively followed commercial poli- 
cies at variance with the principles on which 
the trade-agreements program is based, par- 
ticularly Germany, Italy, and Japan. These 
are the very countries which it is most impor- 
tant to compare with the trade-agreement coun- 
tries in order to evaluate the results of our poli- 
cies. Yet our critics have excluded them on the 
ground that their foreign trade was interrupted 
by war during the period from 1934 to 1938. A 
few other countries, mostly of minor impor- 
tance, have also been excluded, namely, Austria, 
Czechoslovakia, Ethiopia, Albania, China, and 
Spain. 

Italy is excluded, partly on the ground of 
hostilities in Ethiopia in 1935 and 1936, al- 
though the comparison in question is between 
1934 when these hostilities had not started, and 
1938, after hostilities had ceased. So far as 
the Italian occupation of Albania is concerned, 
this did not occur until 1939. Germany is ex- 
cluded, although the military occupation of 
Austria and Czechoslovakia caused no appre- 
ciable interruption of Germany's trade with us. 

Another attempt to make it appear that the 
trade-agreements program has produced no sig- 
nificant results is made by those who emphasize 
the increase in our exports which took place 
between 1932 and 1934. Since this increase 
took place before the trade-agreements pro- 
gram could have been a contributing factor, 
these jDeople argue that the increase of our ex- 
ports in more recent years would have taken 
place in much the same manner even had there 
been no trade-agreements program at all. 

This argument is entirely fallacious, since it 
fails to take into account the reasons for the 
increase in our export trade from 1932 to 1934 
or the situation in subsequent years. The do- 
mestic policies instituted in 1933 to foster gen- 
eral economic recovery stimulated a sharp 
revival of our foreign trade from the extremely 
low point reached in 1932. This development 
was entirely natural in view of the close rela- 



MARCH 2, 1940 



235 



tion between our foreign and our domestic 
commerce. In addition, the period from 1932 
to 1934 was one of recovery in foreign countries 
also, and world trade generally shared in the 
recovery. American exports in that period re- 
vived no more rapidly than world exports as a 
whole. In fact, they rose somewhat more 
slowly. The share of the United States in 
total world exports, which had dropped from 
16 percent in 1929 to 12.8 percent in 1932, fell 
to 11.5 percent in 1934. 

After 1934 the general situation was differ- 
ent. General world recovery proceeded less 
rapidly. Measures to restrict imports were 
intensified in many countries. In some coun- 
tries such measures developed in their most 
extreme form after 1934. Clearly, during 
these latter years, there has been a most urgent 
need for direct and positive action to maintain 
the upward trend of our export trade — action 
of the very kind which the trade-agreements 
program has made possible. 

The salient point is that during the years in 
which this program has been in active opera- 
tion our export trade has increased more rap- 
idly than that of the world as a whole. Our 
share of world exports, which stood at 11.5 
percent in 1934, rose to 13.2 percent in 1937, 
and to 14.0 percent in 1938. This indicates 
that during the time that our trade-agreements 
program has been in operation, we have won 
back a larger share of the world market. 

Furthermore, during the recession of 193S, 
our export trade declined less sharply than 
domestic business. While the national income 
decreased 10.9 percent as compared with 1937, 
exports fell only 7.6 percent. Our foreign 
trade thus helped to moderate the severity of 
that recession. 

Another charge which is made against the 
trade-agreements program is a claim that agri- 
cultural exports have not increased, but have 
declined during the period in which the pro- 
gram has been in operation. This charge is 
based on a comparison between total agricul- 
tural exports in the fiscal year ending June 30, 
1932, with total agricultural exports in the 
fiscal year ending June 30, 1939. Those who 



make this charge fail to point out thai the 
lowest point of agricultural exports occurred 
not in the fiscal year which ended June 30, 
1932, but in the fiscal year ending June 30, 1933. 
In that year agricultural exports amounted to 
$590,000,000. In the fiscal year ending June 
30, 1939, they were $683,000,000. Thus, be- 
tween these 2 years, there was an increase of 
$93,000,000 in our agricultural exports. 

The fallacy of this charge, however, goes 
beyond the selection of the years to be com- 
pared. The figure for total agricultural ex- 
ports is greatly influenced by the highly 
irregular fluctuations in our exports of cotton. 
Cotton exports, as is well known, underwent 
a temporary and entirely abnormal decline in 
the fiscal year 1938-39. More recently, they 
have made a substantial recovery. I maj' say, 
in this connection, that the trade-agreements 
program could, of course, have had nothing but 
a beneficial effect on cotton exports. And I 
may add that the trade agreements have pro- 
tected a significant part of our cotton exjrorts 
against such restrictions as have been raised 
against them in certain countries. 

Because of the recent abnormal fluctuations 
in our cotton exports, it is appropriate to con- 
sider our agricultural exports of commodities 
other than cotton. These increased from $266,- 
000,000 in 1932-33 to $505,000,000 in 1938-39. 

During the years in which the trade-agree- 
ments program has been in active operation, 
our agricultural exports to trade-agreement 
countries have fared much better than our agri- 
cultural exports to other countries. Agricul- 
tural exports to 16 countries with which trade 
agreements were in effect throughout the year 
1938 increased 55 percent between 1935-36 and 
1937-38. The increase in the same period to 
other countries in the aggregate was only 3 
percent. In 1938-39, in spite of the sharp but 
temporary drop in our cotton exports and other 
unfavorable factors, total agricultural ex- 
ports to the 16 trade-agreement countries 
showed an increase of 15 percent, as compared 
with 1935-36, while agricultural exports to 
other countries showed a decrease of 19 percent. 



236 



DEPARTMENT OF STATE BULLETIN 



I have dwelt at some length on the attempts 
which have been made to suggest that our pro- 
gram has done little to help exports. On the 
subject of imports I shall be more brief. The 
Committee is of course familiar with the oft- 
repeated statements by critics of the program 
who view with alarm an imaginary "flood of 
imports," which they sometimes claim, and 
sometimes merely insinuate, has been let into 
this country by tariff reductions. 

The Committee will remember how in 1937, 
a rapid improvement in domestic business com ■ 
bined with the effects of a serious drought, 
caused our so-called "agricultural" imports to 
increase, and immediately the country was de- 
luged with outcries against the alleged "flood 
of farm imports," which forsooth was bringing 
ruin to the American farmer. The authors of 
these alarming statements of course failed to 
mention that the increasing "agricultural" im- 
ports consisted in large part of entirely non- 
competitive articles, such as rubber, coffee, tea, 
bananas, silk, cocoa, and so forth, and that a 
substantial portion of the remainder was 
brought in to supplement our deficient supplies 
of animal feeding stuffs following the drought 
of 1936. They failed to point out that the 
increase in these imports had practically noth- 
ing to do with trade agreements. 

More I'ecently, opponents of the trade-agree- 
ments program, while still contijuiing to use 
the phrase "flood of imports," have taken a 
different tack. They are now telling us that 
the flood is just around the corner. Only the 
war, they tell us, has saved the American mar- 
ket from a flood of imports, but this time, as 
soon as the war is over, they say the flood will 
really come. 

All this sounds very much like the pro- 
verbial cry of "Wolf, wolf." Indeed, one of 
the most remarkable things with which I have 
been impressed during the whole period in 
whicli I have worked on this program, is that a 
very large propoi'tion of the accusations of in- 
jury to American producers which have been 
leveled against this piogram, claim not that 
somebody hoM been injured, but that injury is 
just about to take place. 



One of the main slogans of those who are 
opposed to any tariff reductions is "The Amer- 
ican market for the American farmer." The 
fact is that the American farmer does have, 
and has for many years had, 90 percent or 
more of the American market. What the 
American farmer needs is not only a prosper- 
ous American market, but also a substantial 
share of a better foreign market. In 1929, ac- 
cording to a calculation recently made by the 
Department of Agriculture, the American 
farmer had 90 percent of the domestic market. 
In 1932, after 2 years of the Smoot-Hawley 
tariff, the share had risen from 90 to 93 per- 
cent, but at the same time, gross farm income 
had fallen from nearly 13 billion dollars to a 
little over 5% billion dollars. Wliere was the 
gain from the additional 3 percent of the do- 
mestic market, when the foreign market had 
been almost completely ruined? I need hardly 
add that the 93-percent domestic market was 
anything but a prosperous market. 

The true significance of a large share of the 
domestic market was well expressed by Judge 
Vinson, who, when he was a member of the 
House of Representatives, asked which the crit- 
ics of the trade agreements would rather have : 
95 pei'cent of something or 100 percent of noth- 
ing. For example, the producers of cheese, 
who complained about the tariff reduction on 
Cheddar cheese in the first Canadian agi'ee- 
ment, had 99.8 percent of the domestic market 
for such cheese in 1932, but were getting only 
about 10 cents a pound for their cheese. In 
1936, the first year after the Canadian agree- 
ment, they had only 97.8 percent of the domes- 
tic market, but they got 15.3 cents for their 
cheese. 

In 1938 the American fanner had 95.8 per- 
cent of the domestic market for beef, 99.5 per- 
cent of the American dairy market, more than 
99 percent of the American market for corn, 
and 99 jiercent of the American market for 
pork. These figures indicate beyond any pos- 
sibility of doubt that improvement is to be 
sought not in any increase in the ftJiare, but 
rather in an improvement of the purchasing 
power of the American consumer and in im- 



237 



proved access to foreign markets for our sur- 
plus farm production. 

So much for the contention that the trade 
agreements serve no useful purpose. With re- 
spect to the second general contention, that the 
present program is the wrong way to conduct 
our foreign-trade relations, a number of dif- 
ferent arguments are advanced. It is, of 
course, the responsibility of Congi-ess to decide 
whether the procedure followed is the right and 
most effective procedure, and it is my aim to 
supply you with any and all available infor- 
mation bearing upon this question, but it may 
be of assistance if I just endeavor briefly to set 
the matter before you in its general outline. 

Much of the criticism of the present proce- 
dure rests upon arguments as to legality or con'- 
stitutionality. This is essentially a legal ques- 
tion. Since I am not a la^vyer and as your 
Committee has gone into this question exhaus- 
tively on two previous occasions, I shall not 
attempt to discuss it. The Secretary of State 
has already referred to the very complete state- 
ment on this question by the Legal Adviser of 
the Department of State which is to be found 
in the record of the hearings of the House 
Ways and Means Committee. As the Secretary 
of State has pointed out, it is clear that court 
decisions support the present method. 

From the aspect of policy, the question of 
tariff adjustment by Executive action within 
limits and conditions established by Congress 
is largely a matter of pursuing a practical pio- 
cedure in harmony with the essentials of good 
government. The procedure laid down in the 
Trade Agreements Act conforms to these es- 
sentials, for it authorizes the President to exer- 
cise the authority conferred upon him only in 
accordance with policies and limitations pre- 
scribed by Congress and then only after public 
announcement and opportunity for all inter- 
ested parties to be heard, and after obtaining 
information and advice from the interested 
government agencies. Thus, Congress has pre- 
scribed a clear and intelligible policy, with 
definite limitations on the extent to which ac- 
tion is authorized, and the Executive is re- 
quired, in carrying out the task thus assigned. 



to follow a procedure designed to combine a 
constant preoccupation with the public inter- 
est with due consideration for each individual 
interest which may be affected. 

The detailed procedure developed in the ad- 
ministration of the Trade Agreements Act 
faithfully carries out these essentials of demo- 
cratic procedure. The interdepartmental or- 
ganization, which formulates the recommenda- 
tions for the President before they become the 
subject matter of trade-agreement negotiations, 
has been repeatedly described. This interde- 
partmental organization guarantees the main- 
tenance of the public interest and a scrupulous 
regard for every legitimate private interest. 
The close collaboration of the long-established 
agencies associated in the interdepartmental 
trade-agreements organization, with their ex- 
tended experience and accumulated informa- 
tion, means that this foreign-trade program is 
administered in intimate connection with the 
important domestic affairs with which our for- 
eign trade and tariff problems are closely asso- 
ciated. 

The arrangements for public announcement 
of intended negotiations and for the receipt, 
analysis, and incorporation into the general 
body of information, of the views presented 
by interested persons, have also been described 
many times. I can assure your Committee that 
every care is taken to see that the information 
and views thus presented are thoroughly con- 
sidered. Every reasonable method is adopted 
to facilitate the fullest presentation of infor- 
mation by interested persons. Wlien your 
Committee last reviewed this matter in 1937 the 
procedure had been adopted of definitely an- 
nouncing the import products to which consid- 
eration would be limited in the proposed nego- 
tiations. This procedure has been carefully 
maintained. Likewise, opportunity is con- 
stantly provided for consultation by interested 
parties with the trade-agreements organization 
through informal conferences. 

Because of the effectiveness of this procedure, 
and th6 resulting care with which the facts are 
ascertained and weighed before action is taken, 
we have been able to conclude agreements 



238 

which obtain effective benefits without injuri- 
ous effect. It is significant that when claim of 
injury is made, in most instances it resolves 
itself into apprehension of injury to be suffered 
rather than actual injury experienced. In this 
connection, I may mention that among the 
various safeguards contained in these agree- 
ments there are a number of so-called "escape 
clauses," of varying form and charactei-. These 
provide additional assurance against the con- 
tingency that completely unforeseen circum- 
stances might so change the situation as to 



DEPABTMENT OF STATE BTJLLETIN 

cause an engagement duly entered into to have 
serious consequences. 

Finally, I would like just to mention the 
obvious fact that in the exigency which con- 
fronts us, a procedure which has worked, which 
has proven itself effective in practice, is cer- 
tainly to be preferred above unknown and 
untried expedients. 

It is a privilege to appear before your Com- 
mittee, and I shall be happy to provide any 
further information you may desire so far as 
it is in my power to do so. 



-♦■ -f -f -f -f -f -f 



THE AMERICAN REPUBLICS AND THE TRADE- AGREEMENTS PROGRAM 

Address by Lynn R. Edminster < 



[Beleased to the press February 27] 

This periodic meeting of the Pan American 
League which you have done me the honor of 
inviting me to address happens to come at a 
time when decision is pending in Congress on 
a highly important national issue. The possi- 
ble implications of that decision, for our own 
country, for the other American republics, and 
indeed for other parts of the world as v-cll, are, 
I fear, by no means fully realized by great 
numbers of our people. The issue to which I 
refer is whether the Congress will enact, free 
from vitiating or seriously crippling amend- 
ments, the resolution now before it providing 
for the renewal, for another -3 year period, of 
the Trade Agreements Act. Meeting, as I as- 
sume you do, under wholly nonpartisan aus- 
pices, and at a place rather comfortably re- 
moved from the main arena of political debate 
on this highly controversial question. I hope 
you will bear with me while I undertake to 
point out, in broad outline, what the trade- 
agreements program means, as I see it, to the 
United States and to the other American 
republics. 



* Delivered before the Pan American League, Miami 
Fla., February 27, 1940. Mr. Edminster Is Special 
Asslfltaot to the Secretary of State. 



I do not enter upon a discussion of (his sub- 
ject in any partisan spirit. To me it is a matter 
of extreme regret — and a most unfortunate 
thing from the standpoint of the national wel- 
fare — that any partisanship should enter into 
the discussion of this issue, in Congress or out- 
side of it. For intrinsically it is not, and 
should never be, a partisan matter. The broad 
question which it presents is whether the tariff 
policy of this country shall be so defined by 
the Congress, and so administered under rules 
laid down by the Congress, as to serve the best 
interests of this Nation in the grave and dis- 
ordered situation that prevails throughout the 
world today. Fortunately for our country, as 
I see it — though, of course, I do not question 
the motives or patriotism of any who may dis- 
agree with me — the trade-agreements program 
includes among its supporters many outstand- 
ing Republican leaders and businessmen, by 
far the greater part of the press, including 
many of the leading Republican newspapers, 
and vast numbers of the Republican rank and 
file. 

From the standpoint of the American repub- 
lics the trade-agreements program has a two- 
fold significance. Its more immediate and 
obvious significance is that it provides a prac- 



MARCH 2, 1940 



23d 



tical mechanism for safeguarding and improv- 
ing trade relations between the United States 
and the other American republics. Its deeper 
significance arises, however, from its relation- 
ship to the whole broad problem of world eco- 
nomic reconstruction and hence the economic 
well-being of every continent and every nation. 
I propose to discuss both these phases, and I 
begin with the first and more immediate aspect. 

We are all justly proud of the fine record of 
achievement under our "good neighbor" policy 
of recent years. We have seen its progress evi- 
denced in many directions. The acceptance by 
our Government, along with the other Amer- 
ican republics, of the doctrine of noninterven- 
tion; the abrogation of the Piatt Amendment, 
under which for a generation we had main- 
tained the right to intervene in Cuban affairs; 
the settlement of the Chaco boundary dispute 
through negotiations in which six American 
republics participated; the setting up, at the 
Buenos Aires Conference in 1936, of machinery 
for collective consultation among the Ameri- 
can republics in connection with developments 
anywhere in the world affecting the peace and 
security of the Western Hemisphere, and the 
prompt utilization of this machinery after the 
recent outbreak of the war in Europe; the 
definite steps that have been taken to promote 
closer cultural ties between our own counti'y 
and our southern neighbors : these are all note- 
worthy illustrations of the way in which the 
good-neighbor policy has been "practiced as 
well as preached" in recent years. 

In the economic sphere I think it is quite 
fair to say that there has likewise been funda- 
mental progress — this in spite of the many 
abnormal and extremely difficult conditions 
that have prevailed. In part this progress is 
marked by evidences in various directions of a 
new determination to face and grapple with 
problems in the economic and financial field 
that are of joint concern to all of the American 
republics; in part, by actual achievements in 
the economic domain. As a notable instance 
of the former, I need but to remind you of the 
establishment, at the Panama Conference last 
September, of a Financial and Economic Ad- 

214456 — 40 8 



visory Committee, composed of one representa- 
tive from each country, to study ways and 
means of furthering the economic life of the 
Americas both during and following the pres- 
ent hostilities in other parts of the world. 
That Committee, meeting in Washington, has 
been studying such questions as communica- 
tions, shipping, and the reorganization of mar- 
kets as affected by the repercussions of present 
hostilities on the normal flow of trade. In the 
field of finance, it has worked out and adopted 
a project for an Inter-American Bank, which 
has now been submitted to the 21 governments 
for suggestion and ratification. 

From the standpoint, however, of actual 
achievement in the economic field, the 11 trade 
agreements which we have negotiated with 
other American republics must be given first 
rank. The significance of these agreements 
goes beyond the precise terms of the agree- 
ments themselves. All in all, I think it can 
fairly be said that the conclusion of these 11 
agreements is evidence of a much more realistic 
and wholesome attitude concerning our trade 
relations with our neighbors to the south than 
prevailed in this country even as late as a dec- 
ade ago. I say this in spite of the recent 
failure of efforts to bring still more of South 
America within the scope of the trade-agree- 
ments program. 

It is quite true that most of our imports from 
a number of the American republics with which 
we have made trade agreements are of a non- 
competitive character, and that this factor 
made the task of concluding agreements wit!i 
them much less difficult than it would otherwise 
have been. But that was not uniformly the 
case with respect to all the agreements, as wit- 
ness that with Cuba. The extent to which the 
exports of any given country are in direct com- 
petition with products of our industries is, of 
course, a realistic factor that cannot be blinked 
in the negotiation of agreements and one 
which calls for extreme caution on the part 
of our negotiators. That, however, is rather 
more a limitation on the range and extent of 
the trade concessions that are practicable than 
a reason or excuse for failing to make every 



240 

feasible effort to safeguard and improve our 
trade relations with countries with which there 
exist acceptable bases for negotiation. At all 
events, the point I would emphasize at the 
moment is that there is a far better apprecia- 
tion in this country today than there was a 
decade ago that, if we expect to sell abroad we 
must also buy from abroad, and hence a greater 
realization that we must search for every prac- 
ticable opportunity to increase our imports 
without at the same time inflicting serious 
injury upon any established domestic industry. 

The trade agreements which we have con- 
cluded with the other American republics, as 
with other parts of the world, have been mutu- 
ally helpful in safeguarding and increasing 
trade in the face of the most ti-ying and diffi- 
cult circumstances. As all of us know, we have 
been witnessing in the world, in recent years, 
a struggle between two utterly conflicting types 
of trade policy : on the one hand, aggressive 
bilateralistic policies which would reduce 
international trade to virtually a barter basis 
and therefore eliminate a large part of it; and 
on the other hand, liberal trade policies which 
would preserve and foster multilateral trade as 
the only possible method of expanding interna- 
tional trade as a whole. The agreements con- 
cluded with our sister republics have enabled 
us to safeguard our trade interests in this area 
of the world, as against the pressure to which 
these countries have sometimes been subjected 
to discriminate against our trade, much more 
effectively than could have been done had there 
been no trade agreements. 

I cannot undertake, in the brief space of my 
remarks, to indicate in detail how the various 
branches of American industry and agricul- 
ture have benefited from these agreements with 
our southern neighbors. I simply call atten- 
tion here to a few over-all figures. A year or 
so ago a study by the Commerce Department 
revealed that our exports to trade-agreement 
countries increased, between the 2-year periods 
1934-35 and 1937-38, by 61.2 percent, as con- 
trasted with an increase of only 37.9 percent in 
our exports to nonagreement countries. A 
more recent study by the Commerce Depart- 



DEPAKTMENT OF STATE BULLETIN 

ment showing the same sort of contrast reveals 
that for the year 1939 our exports to agree- 
ment countries increased by 8.1 percent over 
1938, whereas our exports to nonagreement 
countries fell by 4.5 percent. 

These figures relate to trade-agreement and 
nonagreement countries everywhere, without 
specific reference to the American republics. 
The manner in which our trade with the 
American republics benefited from the agree- 
ments can be illustrated, however, by referring 
to some figures recently compiled by the 
United States Tariff Commission. These show, 
for example, that our annual average exports 
to Cuba increased by 140 percent between the 
preagreement period January 1932-August 
1934 and the postagreement period September 
1934-October 1939, whereas for the same period 
our total exports to all countries increased by 
only 60 percent. The same type of comparison 
(based on somewhat different periods) showed 
an increase of 48 percent in our exports to 
Brazil for the periods compared, as against an 
increase of 35 percent in our total exports. 
And it showed an increase of 82 percent in our 
exports to Colombia, as against an increase of 
37 percent in our total exports. 

Even when viewed simply and solely from 
the standpoint of our economic relations with 
the other American republics, it is obvious, 
therefore, that failure at this time to extend 
the authority granted the Executive to enter 
into trade agreements with foreign nations 
would be most unfortunate. Many important 
industries in the United States whose access to 
the markets of our southern neighbors has been 
safeguarded and improved through the trade 
agreements already negotiated would face the 
possibility of losing the valuable benefits which 
they now enjoy. No longer would our Gov- 
ernment have on its statute books this powerful 
instrumentality for protecting and stimulating 
our export trade, and the way would conse- 
quently be open, in this hemisphere and else- 
where, for new barriers and discriminations 
against our products. As for our good- 
neighbor policy, we would be destined to see 
one of its chief economic pillars disappear, 



MARCH 2, 1940 



241 



leaving only lingering memories here and there 
of better days in this economic phase of our 
relationships with our sister republics. 

Important though these more immediate con- 
siderations are, they do not, however — as I 
have said — present the picture in its broadest 
aspects. What is in the long run even more 
vital to all of the American republics without 
exception is the establishment throughout the 
world of peace and order on a basis that holds 
promise of enduring. To be enduring, such a 
settlement must embrace measures of many 
kinds in the field of international economic re- 
construction. Among the most important of 
these are measures to bring about the earliest 
possible resumption and expansion of interna- 
tional trade upon a healthy, peacetime basis. 
If the world's experience during the generation 
after the last World War counts for anj^thing, 
it must surely have impressed upon every na- 
tion the folly, the stupidity, and the terrible 
costliness of ever-mounting trade barriers 
throughout the world. The history of the post- 
war period is in large part the history of a 
struggle for supremacy between such narrowly 
nationalistic economic policies and the broader 
and more salutary policies of constructive in- 
ternational cooperation which have been es- 
poused by enlightened and forward-looking 
people of all nations. I do not believe that any 
informed person today doubts that the tem- 
porary ascendancy of such narrow economic 
policies in many parts of the world contributed 
tremendously to the break-down of economic 
and political relations which we have witnessed 
and the outbreak of another widespi'ead war. 

When tills war ends, will historj^ repeat it- 
self? It is the duty of every one of us, here 
and now. to reflect earnestlj^ and seriouslj' upon 
the grave possibilities of that situation ; to con- 
sider what, as a matter of enlightened self- 
interest if for no other reason, the United States 
can properly and wisely contribute toward the 
restoration of world economic order when that 
critical moment arrives. 

It is precisely here that the trade-agreements 
program comes in. For the past 5I/2 years the 
United States has been taking a position of 
leadership in trying to arrest the spread 



of predatory and destructive trade policies 
throughout the world. This it has done by 
adhering to and promoting trade policies which 
would permit a healthy growth of interna- 
tional trade to the great benefit of every coun- 
try. Is tills the time to abandon such efforts? 
Leaving entirely out of account the important 
leverage which the Trade Agreements Act pro- 
vides in helping us to protect the interests of 
our own traders during the wartime emergency, 
is it not obvious that the withdrawal of these 
powers at this time would constitute virtually 
an advance notice to the rest of the world that 
the United States is no longer interested in the 
I'ehabilitation of international trade; that it 
proposes to take no serious interest in the prob- 
lems of postwar international economic recon- 
struction ? 

Is this the role that a powerful and peace- 
loving nation such as ours proposes to play in 
the world of today and tomorrow ? I dare not 
believe it. I cannot believe, after the painful 
lessons of the past decade, that more than a 
relatively small number of our peoj^le still cher- 
ish the illusion that we can make this country 
prosperous by means of embargo tariffs, or that 
the world can be prosperous when nations wall 
themselves off and refuse to trade with each 
other. In the light of recent history, how many 
people in this country can any longer believe 
that nations which seek to lift themselves by 
their own embargo-tariff bootstraps without 
regard to their economic ties with the rest of 
the world, ever accomplish anything at all 
except to sink themselves deeper into the mire ? 
Has it not been clearly enough demonstrated 
for evei-yone to see that such policies of narrow 
economic nationalism undermine the whole 
foundation of world prosperity, and that no 
nation — not even one so fortunately circum- 
stanced as our own — can jiossibly escape the 
evil consequences thereof? And yet, were we 
to abandon the trade-agreements program, such 
action would signal our return — no matter 
what efforts might be made to disguise the sit- 
uation—to the disastrous policy of tariff em- 
bargoes of which we have already had our fill. 

Every nation in this hemisphere has a direct 
and vital stake in these matters. It is well and 



242 



DEPARTMENT OP STATE BtTLLETIN 



fine that the American republics should seek 
every feasible means of promoting, among 
themselves, closer solidarity — politically, eco- 
nomically, culturally. Indeed, it is more than 
that: it is positively essential, in the world of 
today, that they shall do so. But it is neces- 
sary also to remember that the economic life 
of this hemisphere is still geared in innumer- 
able and vital ways to that of the rest of the 
world. There is no escaping that basic fact. 
The triangular character of our normal trade 
relationships witli Europe and South America 
is a well-known fact that must still be reck- 
oned with despite the many disrupting influ- 
ences of recent years. To both our South 
American friends and to ourselves, the exist- 
ence of a prosperous Europe, willing and able 
to exchange its surpluses for those of the West- 
ern Hemisphere, is indispensable if healthy 
conditions of foreign trade, with all that those 
conditions mean to the domestic economy of 
each country, are to prevail. 

All of the American republics have, there- 
fore, a vital stake in the establishment of solid 
foundations for stable and enduring peace. I 
can sum it all up, as it pertains to trade agree- 
ments, no better than was done by the Presi- 
dent in his annual message at the opening of 
the present Congress, from which I quote as 
follows : 

"The old conditions of world trade made for 
no enduring peace; and when the time comes, 
the United States must use its influence to open 
up the ti-ade channels of the world in order that 
no nation need feel compelled in later days to 
seek by force of arms what it can well gain by 
peaceful conference. For this purpose we need 
the Trade Agreements Act even more than 
when it was passed. 

"I emphasize the leadership which this Na- 
tion can take when the time comes for a re- 
newal of world peace. Such an influence will 
be greatly weakened if this Government be- 
comes a dog in the manger of trade selfishness." 

In short — and concluding my discussion of 
this second and broader aspect of the trade- 
agreements program as it affects the future in- 
terests of the American republics — it is impor- 



tant that we bear in mind three cardinal 
points : First, that this is an economically in- 
terdependent world; second, that the prosper- 
ity of the Western Hemisphere is profoundly 
affected by that of the rest of the world; and 
third, that the kind of commercial policy fol- 
lowed by the United States in the years that 
lie ahead is likely to have far more influence 
upon the course of future world developments 
than many of our people realize or even sus- 
pect. 

Notwithstanding the fundamental soundness 
of the trade-agreements program and the vital 
importance, for reasons which I have been 
stressing, of continuing it in effect during the 
present world emergency, I need hardly tell 
you that the resolution to renew the act for 
another 3-year period is facing determined and 
formidable opposition in Congress. No re- 
source is left untapped in the effort to prevent 
renewal — or, failing that, to permit renewal 
only on terms which would, in practice, make 
the act inoperative. I have read all of the re- 
cent testimony before the Ways and Means 
Committee, and in addition it was my privi- 
lege to hear a great deal of it. If there were 
time I would like nothing better than to discuss 
in some detail the variety of complaints and 
charges that found their way into the testi- 
mony. I shall, of course, be glad, at the close 
of my remarks, to respond to questions con- 
cerning any phase of the agi'eements. I call 
attention here to only a few liigh points of the 
testimony. 

One line of attack was to the effect that the 
trade agreements have not accomplished any- 
thing of importance by way of reopening for- 
eign markets for American products. But, as 
the Committee pointed out in its report on the 
renewal resolution, it does not make sense to 
assume that the more than 3,000 concessions 
obtained on behalf of our exports have not 
made it a great deal easier for American prod- 
ucts to find export outlets than would have 
been the case had there been no concessions. 
Furthermore, data were furnished by the 
Commerce Department, the United States 
Tariff Commission, and other agencies clearly 
revealing tlie beneficial effects of the agree- 



MAIIOH 2, 1940 



243 



ments on our export trade — data -which oppo- 
nents sought resourcefully, but vainly, to dis- 
credit by resort to all manner of statistical 
hocus-pocus which I shall not pause to describe. 
I will say, however, that it gets a little dis- 
couraging when political feeling gets aroused 
to a pitch where we find charged up against 
the trade agreements set-backs to our export 
trade, or to particular branches of it, that have 
clearly been due to causes not even remotely 
connected with trade agreements, as for ex- 
ample the droughts of a few years ago, or, more 
recently, the outbreak of war in Europe. 

Even more strenuous, of course, were the 
efforts made by minority members of the Ways 
and Means Committee to make it appear that 
tariff adjustments which we have made in the 
agreements have resulted in serious damage to 
particular branches of domestic industry and 
agriculture. And yet, when it came to an 
actual show-down, there were surprisingly few 
cases in which witnesses appearing on behalf of 
particular industries even claimed serious in- 
jury as a result of any tariff adjustment, much 
less demonstrated it. Most of the opposition of 
this character took the form of fear that some- 
thing dire might happen, rather than of any 
claim of actual serious injury. 

Moreover, as pointed out in the report of 
the Ways and Means Committee, there was al- 
most invariably a failure on the part of such 
opponents to look beyond the single item in 
which they were interested, to the effect of the 
trade-agreements program as a whole upon the 
purchasing power of our people. Never was 
there the remotest sign of any realization that 
a slightly smaller share of a good domestic 
market may mean more business and more 
profit than a somewhat larger share of a -poor 
domestic market. The lesson of what hap- 
pened following the enactment of the Hawley- 
Smoot tariff, after many of our industries had 
been given an ironclad and padlocked guarantee 
of practically every nook and cranny of the 
home market but nevertheless found themselves 
unable to sell their products because it had be- 
come an extremely -poor home market — that 
lesson, I say, had plainly made no impression. 



The fact is — and this, too, was clearly 
brought out in the testimony — that the whole 
procedure of trade negotiation is surrounded 
by so many safeguards that the chances of 
making tariff adjustments that will seriously 
injure any domestic industry are reduced to a 
minimum. The interdepartmental trade- 
agreements organization provides every con- 
ceivable facility for checking and cross-check- 
ing as to relevant tariff and trade facts and the 
proper interpretation of those facts. Whenever 
there is any substantial doubt concerning the 
result of any tariff adjustment, care is taken to 
employ, wherever appropriate, such devices as 
customs quotas, seasonal limitations, and spe- 
cialized classifications in order to reduce to a 
minimum the impact of foreign competition on 
this market. 

As against the sweeping claims of opponents 
that agriculture has been injured by the agree- 
ments, there was the testimony of Secretary 
Wallace that it had not been hurt but helped 
and that the continuance of the program would 
be definitely in the interest of agriculture. 
Referring to claims of injurious increases in 
imports of farm products, he said: "I do not 
know of a single case where such duty reduc- 
tions have seriously inconvenienced an Ameri- 
can agricultural industry." There was also the 
testimony of the president of the American 
Farm Bureau Federation — one of the largest 
and most genuinely representative farm organ- 
izations in this country — endorsing the pro- 
gram and citing in support of that position the 
findings of a nonpartisan and objective study 
of this whole question, which had been made at 
the instance of the Farm Bureau by the Iowa 
State College, at Ames. Also, there was the 
over-all fact, pointed out by Secretary Hull, 
that between 1932 and 1938, farm cash income 
in this country rose from 4.7 billion dollars to 
7.6 billions, excluding benefit payments, and 
that, even making allowance for price changes 
affecting the farmers' cost of living, farm 
income in 1938 represented at least 40 percent 
more purchasing power than in 1932. 

An impressive feature of the testimony, also, 
was tlie strong support evidenced by business 



244 



DEPARTMENT OF STATE BULLETIN 



and labor. The Business Advisory Council of 
the Department of Commerce, including exec- 
utives of a large number of the most important 
business enterprises of this country, endorsed 
the program. The National Foreign Trade 
Council, an organization broadly representative 
of manufacturing and other enterprises en- 
gaged in foreign trade, expressed its strong 
support. In addition, repi-esentatives of vari- 
ous individual industries appeared or submitted 
briefs in support. On behalf of labor, there 
were appearances or briefs favorable to the 
program by the Brotherhood of Railroad 
Trainmen, the Brotherhood of Railway Clerks 
and various affiliated groups, the International 
Ladies' Garment Workers, and the Women's 
Trade Union League, to counterbalance the op- 
position of Mr. Matthew C. Woll, whose activi- 
ties of long standing in support of embargo 
tariffs, on the erroneous plea that they assist 
American labor, are well known to most of us. 
Speakmg of this labor testimony, the Com- 
mittee, in its report, significantly states: 

"The testimony presented to this committee 
indicates unmistakably that the day has passed 
when it was politically fashionable to proceed 
on the assumption that labor thought of its 
welfare only in terms of higher and higher tar- 
iffs. The true significance of this development 
is that it shows a growing recognition on the 
part of labor that restrictive tariffs are in fact 
barriers to the flow of American trade — the 
life-blood of labor — and a drain upon the pur- 
chasing power of the consuming public of 
which labor is an important element." 

Referring to Mr. Woll's statement, the com- 
mittee further points out that it is unable to 
find in the statement any "evidence which 
would justify a conclusion that American labor 
has been injured." 

A high point of the testimony relating to 
labor was the evidence offered by Dr. Lubin, 
Coimnissioner of Labor Statistics. This 
brought out a number of striking facts. It 
showed, for example, that the trade-agi-eements 
program has increased employment mainly in 
industries that pay wages well above the aver- 
age for American manufacturing industry. It 



showed also that, in a number of our most im- 
portant industries, the exports to countries that 
have made concessions on the products of such 
industries account for a far greater percentage 
of increase in employment than the exports to 
other countries. Altogether, the facts which 
Dr. Lubin brought out gave strong support to 
the thesis that the true interests of labor in 
this country are far better subserved by a 
moderate tariff policy that permits a healthy 
flow of foreign trade than bj' an embargo tariff 
policy which throttles trade and therefore less- 
ens the opportunities for profitable employ- 
ment. 

The attempts of the opposition to show that 
the sort of trade policy we have been pur- 
suing in recent years is not a constructive force 
for peace, I pass over as iniworthy of serious 
discussion. As to the claim that the act is un- 
constitutional, it is sufficient to observe that in 
1934, when the act was first passed, and again 
in 1937 when it was renewed, the Congress ex- 
amined carefully all the legal precedents and, 
both times, satisfied itself that the act was con- 
stitutional. I can only add, as a layman and 
not as a lawyer, that to me the precedents es- 
tablished by court decisions and long-estab- 
lished and unquestioned practices of the Con- 
gress from the earliest days of the Nation leave 
no serious doubt as to the constitutionality of 
this legislation. 

There remains, however, the question of 
whether, as a matter of policy if not of con- 
stitutionality, the agreements negotiated shall 
be made subject either to Senate ratification or 
to congressional approval. On this question 
we are in a position to profit by experience. 
We have already tried that system and found 
it a complete failure. In the whole history of 
this country there were only three reciprocity 
treaties Mhicli secured congressional approval, 
namely, those with Canada in 1854, Hawaii in 
1875, and Cuba in 1902. All three of these 
cases involved countries with which we had 
close geographic or political ties. On the other 
hand there were negotiated, under either gen- 
eral or special authority, about 22 reciprocity 
treaties subject to congressional approval, and 
of these not a single one became effective. 



MARCH 2, 1940 



245 



In contrast to this record, prior to the enact- 
ment of the Trade Agreements Act, some 26 
agreements were negotiated and made eflFective- 
under statutes which called for no congres- 
sional approval. To this total must be added 
the 22 agreements (and 2 additional supi)le- 
mental agi-eements) which have been negoti- 
ated and become effective under the present 
Trade Agreements Act. 

It was this earlier experience which Secre- 
tary Hull had in mind and had just recounted 
in his testimony before the Committee, when, 
upon being asked whether he did not agree 
that to require ratification would leave the 
shadow but not the substance of the tiade- 
agreements program, he replied : "I think the 
first time an agreement came up for approval, 
there would remain, when the Senate got 
through, neither the shadow nor the sub- 
stance." Of course I need scarcely explain 
that the responsibility for the state of affairs 
to which the Secretary referred would not lie 
with any individual or group of individuals. 
It is simply inherent in the working of the 
legislative process when Congress goes beyond 
the establishment of broad tariff policy and of 
rules for administrative guidance in carrying 
it out and itself undertakes to legislate or pass 
upon the details of our tariff-rate structure. 

These, as I say, are but a few high points 
touching the controversy that is waxing over 
this issue. Those who wish to familiarize 
themselves in more detail with the issues in- 
volved need not read the many hundreds of 
pages of testimony; they need only read the 
43-page report of the Ways and Means Com- 



mittee recommending the passage of the 
renewal resolution. 

I cannot more appropriately close my re- 
marks than by quoting the following passages 
from the statement made by Secretary Hull to 
the Committee: 

"Wliile hostilities are in progress, it is nec- 
essary for us to defend our export trade from 
the inroads of war-time controls and disloca- 
tions. For this purpose, the trade agreements 
now in effect are of inestimable value. The 
scope for going forward with the program dur- 
ing the war is naturally restricted. But the 
need for facilitating trade and for keeping 
alive the principles which underlie the trade- 
agreements program is of crucial importance. 
For our actions now will have an enormous 
influence upon the problems of economic re- 
construction when hostilities have ceased. . . . 

"The world needs today and will need in- 
creasingly tomorrow the surplus production of 
our agriculture and industry, just as our 
farmers and our workmen and our business- 
men need foreign markets for the maintenance 
of their prosperity. The choice before us is 
whether we shall throw away these precious 
opportunities by abandoning the trade-agree- 
ments program, or whether we shall keep ready 
for use, whenever possible, the necessary means 
of prompt and effective action provided by the 
program. The choice before us is whether we 
shall lead the way toward the slough of de- 
sjiair and ruin for ourselves and for others, 
or toward the heights of economic progi-ess, 
sustained prosperity, and enduring peace for 
our Nation and for the world." 




CONTRIBUTIONS FOR RELIEF IN BELLIGERENT COUNTRIES 



(Released to the press February :!8] 

Following is a tabulation of contributions 
collected and disbursed during the period Sep- 
tember 6, 1939, through January 31, 1940, as 
shown in the reports submitted by persons and 



organizations registered with the Secretary of 
State for the solicitation and collection of con- 
tributions to be used for relief in belligerent 
countries, in conformity with the regulations 
issued pursuant to section 8 of the act of Novem- 



246 

ber 4, 1939, as made effective by the President's 
proclamation of the same date. 

This tabulation has reference only to con- 
tributions solicited and collected for relief in 
belligerent countries (France; Germany; Pol- 
and; and the United Kingdom, India, Aus- 
tralia, Canada, New Zealand, and the Union of 
South Africa) or for the relief of refugees 
driven out of these countries by the present war. 
The statistics set forth in the tabulation do not 
include information regarding relief activities, 
which a number of organizations registered with 
the Secretary of State may be carrying on in 
nonbelligerent countries, but for which regis- 



DEPAETMENT OF STATE BULLETOT 

tration is not required under the Neutrality Act 
of 1939. 

The American National Red Cross is reqiiired 
by law to submit to the Secretary of War for 
audit "a full, complete, and itemized report of 
receipts and expenditures of whatever kind." 
In order to avoid an unnecessary duplication 
of work, this organization is not required to 
conform to the provisions of the regulations 
governing the solicitation and collection of con- 
tributions for relief in belligerent countries, and 
the tabulation does not, therefore, include in- 
formation in regard to its activities. 



CONTRIBBTIONS FOR RELIEF IN BELLIGERENT CotlNTRIES 



Funds spent 

(or relief in 

countries 

named 



Funds 
spent for 
adminiS' 
tration, 
publicity, 

affairs, 

campaigns, 

etc. 



Unexpended 
balance as of 
Jan. 31, 1940, 

including 
cost of goods 

purchnscd 

and still on 

band 



Estimated 
value of 

contribu- 
tions in 

kind sent 
to coun- 
tries named 



Estimated 
value of 

contribu- 
tions in 

kind now 
on hand 



American and French Students' Correspondence Exchange, New 

York, N. Y.. Dec. 20, 1939. Franco - 

American Association for Assistance to French Artists, Inc., New 

York, N. Y.. Jan. 3, 1940, Franco 

American Auxiliary Committee do 1,'Union des Femmes do France, 

New York, N. Y., Nov. 8. 1939. France.. 

American Committee for Aid to BriHsh Medical Societies, New York, 

N. Y., Sept. 21, 1939. United Kingdom _ 

American Committee lor Christian Refugees, New York, N. Y., Sept. 

26, 1939. Germany and France 

American Field Service, New York, N. Y., Pept. 27, 1939. Franco.... 
American French War Relief. Inc. (formerly French and American 

Association for the Relief of War Sufferers), New York, N. Y., Sept. 

M. 1939. France 

American Friends of Czechoslovakia, New York, N. Y., Nov. 2, 1939. 

Great Dritain, France, and Bohemia. Moravia 

American Friends of Franco, Inc., New York, N. Y., Sept. 21, 1939. 

France 

American Friends of the Daily Sketch War Relief Fund, New York, 

N. Y.. Dec. I, 1939. Groat Brilain 

American Friends Service Commlllce. Philodelphia, Fa., Nov. 9, 1939. 

United Kingdom, Poland. Germany, and France... 
American Fund lor French Wounded, Inc., Boston Branch, Boston, 

Mass., Jan. 3. 1940. France 

American Fund for Wounded In France, Inc., Worcester, Mass'lDec. 

IB, 1939. France 

American German Aid Society, Los Angeles, Caiif., "Nov. 15,' 1939 

Germany 

The American Jewish Joint Distribution Committee. Inc., New York 

N. Y., Sept. 29, 1939.» United Kingdom, Poland, Germany, and 

France 

American McAll Association, New York, N. Y., Jan. silWO. France 
American Snclely for British Medital and Civilian Aid, Inc New 

York, N. v., Oct. 19, 1939, Orpnt Drilain and France. 
American Society lor French Medical and Civilian Aid, Inc New 

York, N. Y,, Oct. 13, 1939. France 

American Unit for War Relief Association, New York, N. Y.. Jan is" 

1940. Franco 

American Volunteer Ambulance Corps, New York, N.Y Dec 12 

1939. France . • , 

American Women's nospllals, New "V^ork, N.'Y.i'ScptV'lV. "mo"' 

France and England 

Mrs Larz Anderson, Bo-ston, Mass., Dec. iii 1939." France 

Anthracite Relief Committee, WIlkesBarre, Pa., Sept. 8, im."i'o-' 



1, 101. 00 
2,401.00 



Associated Polish Societies Relief Committceof WebsYeV. Mass" 
Webster, Mass., Sept. 21, 1939. Poland .....°!! 



2,515.98 
• Btatiatics given are for Sept., Oct., and Nov. 1939 only. Later figures are not yet 



None 

$500.00 

26.60 

None 



9,402.67 

041. 77 

40, 433. 65 

1, 302. 00 

17,908.33 

424.74 

None 

None 



5,020.69 

39, 461. 46 

16.00 

17,600.00 



2,000.00 
None 
available. 



$37.14 

327.87 

68.66 

4,164.43 

None 
1, 121. 66 

380.41 
1, 794. 49 
1, 993. 93 

None 
1,814.76 

61.74 

None 



4,848.61 

4, 465. 82 

None 

None 

11.12 
None 

166.45 

7.60 



$167.41 

273.63 

2,305.94 

633.35 



3,794.86 
535.24 

6, 837. 46 

None 

10, 608. 00 

1,346.02 
200.00 
715.07 



95,814.30 

40,469.26 

124. 82 

2,002.00 

86.60 
102. 00 

6,921.06 

2,508.48 



None 

$135. 35 

625.00 

None 



12,236.67 

9,225.00 

2, 164. 70 

None 

5,672.45 

27L95 

None 

None 



None 

4,331.23 

None 

None 

None 
None 

None 

None 



None 
None 
$25.00 
63.00 



None 
None 
None 
None 
4, 35a 76 
66.00 
None 
None 



126.26 

37Z0O 

None 

None 

None 
None 

Non« 

Nods 



MARCH 2, 1940 



247 



Contributions fob Relief in Belligerent Countries — Continued 



Name of registrant, location, date of registration, and destination of 
contributions 


Funds 
received 


Funds spent 

for relief in 

countries 

named 


Funds 
spent for 
adminis- 
tration, 
publicity, 

affairs. 

campaigns, 

etc. 


Unexpended 
balance as of 
Jan. 31, 1940, 

including 

cost of goods 

purchased 

and still on 

hand 


Estimated 
value of 

contribu- 
tions in 

kind sent 
to coun- 
tries named 


Estimated 
value of 

contribu- 
tions in 

kind now 
on hand 


Associated Polish Societies' Eelief Committee of Worcester, Mass., 


$6,240.89 

160.00 

1,370.71 

627.30 

50.00 
1,295.86 

2,511.92 

37,436.19 

6.823.81 

4,312.99 

4,406.23 

4, 671. 22 

20, 403. 39 

2, 996. 93 

331.64 

1, 566. 69 


$4, 206. 45 

None 

1,000.00 

300.00 

None 
216. 40 

2,200.00 

10,000.00 

3, 770. 60 
Nonn 

1,856.04 

394.00 

None 

None 

None 

1,339.00 


$453.10 

None 

85.67 

34.89 

None 
762. 67 

248.46 

3.50 

635.01 

739.06 

169.60 

50.25 

2,688.87 

757. 69 
162. 87 
None 


$1,621.34 

150.00 

285.04 

192. 41 

50.00 
316. 79 

63.46 

27,432.69 

1,418.30 

3, 673. 93 

2.379.59 

4, 126 97 

17, 714. 62 

2, 238. 24 
168. 77 
217. 69 


$1,430.00 

None 

None 

None 

None 
None 

None 

None 

None 

None 

1,269.32 

None 

None 

None 
None 
None 




Association of Former Juniors in France of Smith College, New York, 
N. Y., Dec. 18. 1939. France 




Association of Joint Polish-American Societies of Chelsea, Mass., 
Chelsea, Mass., Sept. 15. 1939. Poland 




Basque Delegation in the United States of America, New York, N. Y., 
Dec. 19, 1939. France- 




The Benedict Bureau Unit, Inc., New York, N. Y., Nov. 29, 1939. 




Beth-Lechem, Inc., New York, N. Y., Sept. 21, 1939. Poland 


None 


Bethel Mission of Poland, Inc., Minneapolis, Minn., Nov. 27, 1939. 




Bishops' Committee for Polish Relief, Washington, D. C, Dec. 19, 
1939. Poland 




Board of National Missions of the Presbyterian Church in the United 
States of America, New York, N. Y., Sept. 26, 1939. Great Britain, 




British-American War Relief Association, Seattle, Wash., Nov. 17, 




British War Relief Association of Northern California, San Francisco, 
Calif., Oct. 20, 1939. Great Britain and France 




The British War Relief Association of Southern California, Los 




British War Relief Society, Inc., New York, N. Y., Dec. 4, 1939. 


$44.20 


Bundles for Britain, New York, N. Y., Dec. 28, 1939. Great Britain 


326.00 


Caledonian Club of Idaho. Boise, Idaho, Jan. 25. 1940. Scotland 

The Catholic Leader, New Britain. Conn., Sept. 25, 1939. Poland 

Catholic Medical Mission Board, Inc., New York, N. Y.. Jan. 17, 
1940.' India, Australia, Canada, New Zealand, and the Union of 


None 
None 


The Catholic Student War Eelief of Pax Romana, Washington. D. C, 

Dec. 13, 1939. Poland, France, Germany, and Great Britain... 

Central Citizens Committee, Detroit, Mich., Sept. 14, 1939. Poland . 
Central Committee Knesseth Israel, New York, N. Y., Oct. 27, 1939. 


101.60 
636.69 

9,030.77 

3,848.06 

829.49 

17,821.02 

3.055.66 
1.326.13 

1, 794. 68 
4,817.28 

3, 299. 95 

4, 496. 67 
624. 81 

76.721.47 
1,981.40 

2, 289. 10 
6.415.68 

10.063.42 
2.925.77 
142.00 
1,079.39 
1,853.71 


60.00 
536.69 

6, 233. 61 

3, 256. 70 

600.00 

14, 314. 35 

1. 226. 48 
848. 60 

None 

4,176.22 

3.000.00 

2,655.89 

633.89 

62,600.48 

None 

None 

3, 685. 16 

5,931.00 

1, 391. 00 

142.00 

500.00 

302. 70 


22.76 
None 

3. 797 26 

48.40 

6.10 

367. 22 

1,786.56 
11.66 

421. 16 

248.86 

None 

720.91 

90.92 

22.371.70 

None 

255.71 

183. 07 

1,768.42 

97 92 

None 

24.64 

884.51 


28.86 
None 

None 

542.96 

324. 39 

3, 139. 46 

44.61 
464.88 

1,373.63 

393. 21 

299.95 

1,118.77 

None 

None 

1,981.40 

2, 033. 39 

1,647.46 

2, 364. 00 

1. 436. 85 

None 

554. 75 

666.50 


None 
None 

None 
1,011.95 

None 

8,321.69 

1, 200. 00 
1,100.00 

None 

1. 284. 60 
None 

2,000.00 
None 

1.500.00 
None 
None 
560.00 
100.00 

2.445.50 
None 
None 
230.35 


None 
None 






Central Council of Polish Organisations, New Castle, Pa., Nov. 7, 






900.00 


Central Spanish Committee for Reliefof Refugees, Washington, D. C, 
Sept. 21, 1939. France 


None 


Centrala, Passaic, N. J., Oct. 12, 1939. Poland - - 


100.00 


Cercle Francais de Seattle, Seattle, Wash., Nov. 2, 1939. France and 
Great Britain 




Chester (Delaware Co., Pa.) Polish Relief Committee, Chester, Pa., 
Sept. 15. 1939. Poland . 


None 


Circle of Poles of St. Hedwig, Polish American Citizens' Committee, 
New Britain, Conn., Sept. 20. 1939. Poland.... 




Citizens Committee for Relief of War Suflerers in Poland, St. Louis, 
Mo., Oct. 16. 1939. Poland... 




Club Amical Francais, Detroit, Mich., Sept. 15, 1939. France, Poland, 




Commission for Polish Relief, Inc., New York, N. Y., Sept. 12, 1939. < 
Poland 




Committee for Aid to Children of Mobilized Men of the XX" .Vrron- 
dissementof Paris, New York, N.Y., Jan. 15, 1940. France 


None 


Committee for the Relief for Poland, Seattle, Wash., Nov. 24, 1939. 
Poland 




Committee of French-American Wives, New York, N. Y., Nov. 15, 
1939. France 


25.00 


Committee of Mercy, Inc., New York, N. Y., Sept. 16, 1939. France, 




Committee of the American Fund for Breton Relief, New York, N. Y., 
Oct. 31, 1939. France 




Committee ReprK^cnting Polish Organizations and Polish People in 
Perry, N. Y.. Perry. N. Y., Oct. 23. 1939. Poland 

East Chicago Citizen's Committee for Polish War Sufferers and 
Refugees, East Chicago, Ind., Oct. 16. 1939. Poland 

The Emergency Aid of Pennsylvania, Philadelphia, Pa , Oct. 13, 1939. 
England and France 


None 
None 
121.90 



* No report has been received from this organization. 

" The administrative expenses of this organization were incurred not only in connection with the contributions 
nection with the contributions transmitted to it by other registrants in this country to be used for relief purposes in 
gees in neighboring countries. 



received directly by it but also in con- 
Poland, or for the relief of Polish refu- 



248 



DEPARTMENT OF STATE BULLETIN 
Contributions for Relief in Belligerent Countries — Continued 



Name of registrant, location, date of registration, and destination of 
contributions 



English-Speaking Union of the United States, New York, N. Y., Dec. 

26, 1939. ■< Oreat Britain, possibly France - 

The Fashion Group, Inc., New York, N. Y., Nov. 18, 1939.' France- 
Federated Council of Polish Societies of Grand Rapids, Mich., Grand 

Rapids, Mich.. Sept. li. 1939. Poland - - 

Federation of Franco-Belgian Clubs of Rhode Island, Woonsocket, 

R. I., Nov. I.M939. France....-..- ...---------- 

Federation of French Veterans of the Great War, Inc., New York, 

N. Y., Oct. 11, 1939. France.- -- 

Federation of Polish Jews in America, Inc., New York, N. Y., Sept. 

H, 1939. Poland- 

The Federation of Polish Societies, Little Falls, N. Y., Oct. 9, 1939. 

Poland .. - --- 

Fellowshipof Reconciliation, New York, N. Y., Jan. 20, 1940. France, 

England, and possibly Germany 

Foster Parents' Plan for War Children, Inc., New York, N. Y., Sept. 

21, 1939. France - 

French Committee for Relief in France, Detroit, Mich., Oct. 17, 1939. 

France . 

French War Relief, Inc., Los Angeles, Calif., Nov. 16, 1939. France- 
French War Veterans (Anciens Combattants Franeais do la Grande 

Guerre), Los Angeles, Calif., Dec. 5, 1939. France 

The Friends of Israel Refugee Relief Committee, Inc., Philadelphia, 

Pa., Oct. 23, 1939. Canada, France, and England 

The Friends of Normandy, New York, N. Y., Dec. 18, 1939. France.. 

Friends of Poland, Chicago, 111., Dec. 6, 1939. Poland -- 

Irvin McD. Garfield, Boston, Mass., Dec. 18, 1939./ England 

General Gustav Orlicz Dreszer Foundation for Aid to Polish Children, 

Washington, D. C, Nov. 3, 1939. Poland.- 

General Taufflieb Memorial Relief Committee for France, Santa 

Barbara, Calif., Nov. 17, 1939. France and England - 

Golden Rule Foundation, New York, N. Y., Nov. 2, 1939. Poland 

and Palestine - -- 

The Grand Duke Vladimir Benevolent Fund Association, New York, 

N. Y., Jan. 8, 1940. France -. 

Greater New Bedford British War Relief Corps, New Bedford, 

Mass., Dec. 19, 1939. Oreat Britain 

Margaret-Greble Greenough (Mrs. Carroll Greenough), Washington, 

D. C, Nov. 21, 1939. France 

Hadassah, Inc., New York, N. Y., Nov. 15, 1939. Palestine 

Hebrew Christian Alliance of America, Chicago, 111., Jan. 3, 1940. 

England, Germany, and Poland 

Holy Cross Relief Fund .\ssociation of New Britain, Conn., New Brit- 
ain, Conn., Sept. 27, 1939. Poland 

Holy Rosary Polish Roman Catholic Church, Passaic, N. J., Sept. 

16. 1939. Poland -- ..- .- 

A. Seymour Houghton, Jr., (Miss) Ruth T. Stewart, and Augustus 

8. Houghton, New Yor't, N. Y., Nov. 27, 1939. France 

Humanitarian Work Committee, Glen Cove, N. Y., Sept. 30, 1939. 

Poland 

Independent Kinsker .\id Association, Brooklyn, N. Y., Jan. 3, 1940. 

Poland 

International Committee of Young Men's Christian Associations, 

New York, N. Y., Sept. 22, 1939. Poland, France, and India 

International Relief .\ssociation for Victims of Fascism, New York, 

N. Y., Sept. 25. 1939. France, England, and Germany 

The Kindergarten Unit, Inc., Norwalk, Conn., Oct. 3, 1939. France, 

Poland, United Kingdom, India, .Australia, and New Zealand 

Kuryer Publishing Company, Milwaukee, Wis., Sept. 16, 1939. 

Poland 

Der KylThaeuserbund. League of German War Veterans in U. S. A., 

Philadelphia, Pa., Nov. 27, 1939. Poland and Germany 

Lackawanna County Committee for Polish Relief, Scranton, Pa., 

Sept. 16, 19.39. Poland -.. _ _.- 

Lafayette Fund, Washington, D. C, Jan. 2, 1940. France _ 

LaFayette Preventorium, Inc., New York, N. Y., Sept. 21, 1939. 

France . . 

League of Polish Societies of New Kensington, Arnold, and vicinity. 

New Kensington, Pa., Nov. 17, 1939. Poland 

Legion of Young Polish Women, Chicago, 111., Oct. 2, 1939. Poland 
Les Amis de la France & Puerto Rico, San Juan, P. R., Dec. 20, 1939. 

France.. 

Les AmltlCs Ffminines de la Franco, New York, N. Y., Dec. 19^ 1939. 

Franc© - - 

Les Anciens Combattants Francais de la Grande Guerre (F'rench War 
Veteran^ of .'ian Francisco Benevolent Association), San Francisco, 
Calif., Oct. 26, 1939. France 



3, 175. 65 
910. 75 

1, 026. 00 

794. 08 

328. 00 

509.21 

39, 670. 89 



6, 350. 86 
748. 50 
976. 90 
774. 20 

612. 20 

1, 027. 69 

140.00 

72.64 

940. 99 

860.00 
566, 656. 79 

62.86 

672. 34 

1, 077. 00 

11, 633. 67 

750.84 

176.00 

16,11L00 

5, 471. 42 

236. 56 

5, 060. 35 

1, 275. 84 



1,965.00 
164.50 



Funds spent 

for relief in 

countries 

named 



2, 200. 00 
None 
200. 80 
502.50 
301.00 
345. 26 

18, 785. 20 



92.50 
300. 00 

None 
756. 20 

150. 00 

864.90 

None 

57.00 

673. 31 



60.00 
None 

1, 049. 00 
None 
400.00 
None 
None 

2, 711. 12 
37.85 

6, 046. 79 
810. 00 



None 
None 



Funds 
spent for 
adminis- 
tration, 
publicity, 

affairs, 
campaigns. 



$5.00 
44.25 
2.50 
134. 99 
27.00 
None 
8, 186. 78 



2, 691. 03 
46.98 
54.39 
18.00 

303. 85 

20.79 

None 

1.54 

24.94 



None 
None 
10.15 
None 
None 

607. 61 
2, 248. 29 

197. 71 
13.66 

201.47 

6.00 
None 

1, 877. 00 

50.55 
806. 95 

None 

27.75 



Unexpended 
balance as of 
Jan. 31, 1940. 

including 
cost of goods 

purchased 

and still on 

hand 



Estimated 
value of 
contribu- 
tions in 
kind sent 
to coun- 
tries named 



970. 65 
866. 50 
822. 70 
156. 59 
None 
163. 95 
12, 698. 91 



3, 567. 33 
401. 52 
922. 51 
None 

158. 35 

142. 00 

140.00 

14.00 

242. 74 



None 
572. 34 
28.00 

11, 623. 42 
350.84 
176.00 

15, 503. 39 
612. 01 
None 
None 
264.37 



1, 965. 00 
126. 76 



None 
None 
$331. "0 
2, 689. 28 
None 
None 
None 



None 
None 
None 
None 

None 

80.00 

None 

None 

None 



None 
None 
None 
None 
50.00 
None 
None 
1,310.00 
None 
None 
None 



None 
None 



' Statistics given are for December only. Figures for January are not 
•The registration of this organization was revoked on Jan. 31, 1940. 
' The registration Oi this organization was revoked on Jan. 31, 1940, at 



yet available. 

at the request of registrant. 

the request of registrant. 



MARCH 2, 1940 



249 



Contributions for Relief in Belligerent Countries— Continued 



Funds spent 

for relief in 

countries 

named 



Funds 
spent for 
adminis- 
tration, 
publicity, 

affairs, 

campaigns, 

etc. 



Unexpended 
balance as of 
Jan. 31, 1940, 

including 

cost of goods 

purchased 

and still on 

hand 



Estimated 
value of 

contribu- 
tions in 

kind sent 
to coun- 
tries named 



Estimated 
value of 

contribu- 
tions in 

kind now 
on hand 



The Little House of Saint Pantaleon, Philadelphia, Pa., Sept. 30, 1939. 
France 

L'Union Alsacienne Inc., New York, N. Y., Oct. 28, 1939. France... 
The Maryland Committee for the Relief of Poland's War Victims, 

Baltimore, Md., Oct. 21, 1939. Poland _ 

Massachusetts Relief Committee for Poland, Worcester, Mass., Nov. 

9. 1939. Poland... 

Medem Committee, Ino., New York, N. Y., Sept. 22, 1939. » Poland, 
Milford, Connecticut, Polish Relief Fund Committee, Milford, Conn., 

Nov, 6, 1939. Poland 

Modjeska Educational League Welfare Club at the International Insti- 
tute, Toledo, Ohio, Sept. 15, 1939. Poland 

Emily Morri'. (Mrs. Lewis Spencer Morris), New York, N. Y., Jan. 

13. 1940. Fiance. 

Fernanda Wanamaker Munn (Mrs. Ector Munn), New York, N. Y., 

Nov. 25, 1939. France 

New Jersey Broadcasting Corporation, Jersey City, N. J., Sept. 13, 

1939. Poland 

North Side Polish Council, Relief Committee, of Milwaukee, Wis., 

Milwaukee, Wis., Dec. 6, 1939. Poland 

Nowe-Dworer Ladies Benevolent Association, Inc., New York, N. Y., 

Oct. 25, 1939. Poland 

Nowiny Publishing Apostolate. Inc., Milwaukee, Wis., Sept. 26, 1939. 

Poland -. 

Nowy Swiat Publishing Co., Inc., New York, N. Y., Sept. U, 1939. 

Poland and France 

Order of Scottish Clans, Boston, Mass., Jan. 25, 1940. Scotland 

Le Paquet au Front, New York, N. Y., Oct. 6, 1939. France.. 

The Paryski Publishing Co., Toledo, Ohio, Sept. 15, 1939. Poland... 
Poland War Sufferers Aid Committee, Cleveland, Ohio, Sept. 16, 1939. 

Poland 

Polish Aid Fund Committee of Federatinn of Elizabeth Polish Organ- 
izations. Elizabeth, N. J., Sept. 23, 1939. Poland 

Polish Aid Fund Committee of St. Casimir's Roman Catholic Church 

of the City of Albany, N. Y., Albany, N. Y., Jan. 22, 1940. Poland.. 
Polish American Associations of Middlesex County, N. J., Sayrevillc, 

N. J., Jan. 22, 1940. Poland 

Polish American Central Civic Committee of South Bend, Ind., South 

Bend, Ind.. Sept. 19, 1939. Poland 

Polish-.^merican Citizens Relief Fund Committee, Shirley, Mass., 

Dec. 16, 1939. Poland 

Polish American Council (formerly the Coimcil of Polish Organizations 

in the United States of America), Chicago, 111., Sept. 16, 1939. 

Poland 

Polish Army Veterans Association of America, Inc., New York, N. Y., 

Sept. 27, 1939. Poland 

Polish Broadcasting Corporation, New York, N. Y., Sept. 23, 1939. 

Poland 

Polish Business and Professional Men's Club, Los Angeles, Calif., 

Nov. 17, 1939. Poland 

Polish Central Committee of New London, Conn., New London, 

Conn., Oct. 13, 1939. Poland 

Polish Central Council of New Haven, New Haven, Conn., Sept. 29, 

19.39. Poland 

Polish Civic League of Mercer County, Trenton, N. J., Sept. 19, 1939. 

Poland... . . . 

Polish Civilian Relief Fund, Passaic, N. J., Oct. 27, 1939. Poland 

Polish Club of Washington, Washington, D. C, Sept. 14, 1939. Po- 
land 

Polish Emergency Council of Essex County, N. J., Newark, N. J., 

Sept. 14. 1939. Poland 

Polish Episcopal Churchinthe Diocese ofPennsylvania.Philadelphia, 

Pa., Sept. 25, 1939. Poland 

Polish Falcons Alliance of America, Pittsburgh, Pa., Sept. 20, 1939. 

Poland 

Polish Interorganization Council, Detroit, Mich., Oct. 11, 1939. Po- 
land 

Polish Literary Guild of New Britain, Conn., New Britain, Conn., 

Sept. 21, 1939. Poland 

Polish Medical Relief Fund of Mt. Desert Island, Maine, Bar Harbor. 

Maine. Sept. 25, 1939.* Poland 

The Polish National Alliance of Brooklyn. United States of America, 

Brooklyn, N. Y.. Sept. 19. 1939. Poland 

Polish National .\Iliance of the United States of North America, Chi- 
cago, 111., Sept. 27, 1939. Poland 



298.43 

3, 045. 46 

None 
2, 997. 12 

1, 210. 55 
521. 76 
331.47 

4, 499. 86 

24, 491. 04 

490. 50 

42,470.81 

5,101.25 

18, 033. 27 

6, 580. 37 

456. 75 

217.00 

8, 201. 33 

120. 75 

142, 928. 91 

2, 535. 71 
1,092.61 

None 

701.85 

1,771.57 



944. 31 
10, 724. 27 
181. II 
5. 859. 00 
6,517.06 
1, 766. 64 
3,413.15 
4. 749. 35 
221,545.68 



None 
2, 762. 82 

None 

1, 780. 30 

826. 17 

None 

Noue 

2, 150. 00 

21, 034. 72 

None 

36,488.61 

4.481.30 

17, 953. 81 

346. 00 

11.68 

200. 00 

6, 758. 11 

None 

46, 875. 35 
None 
None 
None 
350. 00 
1, 331. 00 



583. 41 
8, 044. 75 
None 
6, 647. 60 
3, 070. 99 
1, 000. 00 
3, 126. 80 
4, 000. 00 
181, 065. 00 



110.07 
710. 10 



70.40 

282.64 

None 

957. 22 

384. 38 

None 

47.50 

None 

103. 39 

None 

11, 882. 72 

None 

79.46 

None 

None 

12.50 

349. 49 

6.00 



None 

27.26 

None 

27.30 

61.26 

None 
137.00 

360. 90 
71.54 
None 
None 
51.30 
13.00 

278. 71 
None 

152. 56 



228.03 
None 
None 

259. 60 
None 

521. 76 

283.97 

2, 349. 86 

3, 352. 93 
490. 50 

None 
619. 95 

None 

6, 235. 37 

445. 07 

4.50 

1, 093. 73 
116.75 

95, 803. 66 

2, 535, 71 
1,065.35 

None 
324. 55 
389. 31 



None 

2, 007. 98 

181.11 

211.40 

2, 794. 77 

753.64 

7.64 

749. 35 

40, 328. 12 



None 

None 

None 

355. 95 

None 

None 

None 

None 

None 
None 
1, 1,53. 1 
None 

None 

1,500.00 

500. 00 

None 

None 

None 

None 
None 
None 
None 
76.00 
800.00 



None 
828, 50 
None 
None 
116.22 
None 
None 
None 
None 



None 

None 

None 

None 

None 

None 

None 

None 

None 
None 
201.40 
Noue 

None 

None 

None 

None 

None 

None 

None 
None 
None 
None 
None 
500. 00 



None 
300.00 
None 
None 
None 
None 
None 
None 
None 



250 



DEPAETMENT OF STATE BULLETIN 
Contributions for Relief in Belligerent Countries — Continued 



Name of registrant, location, date of registration, and destination of 
contributions 



Funds spent 
for relief in 
countries 



Funds 
spent for 
adminis- 
tration, 
publicity, 

affairs, 

campaigns, 

etc. 



Unexpended 
balance as of 
Jan. 31, 1940, 

including 
cost of goods 

purchased 

and still on 

hand 



Estimated 
value of 
contribu- 
tions in 
kind sent 
to coun- 
tries named 



Polish National Catholic of the Holy Saviour Church, Union City, 

Conn., Sept. 16, 1939.' Poland ;-:;;-- 

Polish National Council of Montgomery County, Amsterdam, N. Y., 

Oct. 12, 1939. Poland _ --- ------ 

Polish National Council of New York, New York, N. Y,, Sept. 14, 

1939. Poland - - ■-- 

The Polish Naturalization Independent Club, Worcester, Mass., 

Sept. 20, 1939. Poland - ,--,-r--- 

Polish Relief Association, Town of North Hempstead, Mineola, N. Y., 

Oct. 19, 1939.' Poland- _ - -.- -\- 

The Polish Relief Committee, Baltimore, Md., Oct. 20, 1939. Poland. 

Polish Relief Committee, Flint, Mich., Sejit. 18, 1939. Poland 

Polish Relief Committee, New Bedford, Ma,ss., Oct. 31, 1939. Poland- 
Polish Relief Committee, Rochester, N. Y., Nov. 8, 1939. Poland 

Polish Relief Committee, Taunton, Mass., Dec. 13, 1939. Poland 

Polish Relief Committee of Boston, Boston, Mass., Sept. 14, 1939. 

Poland - 

Polish Relief Committee of Brockton, Mass., Brockton, Mass., Sept. 

25, 1939. Poland - - -- 

Polish Relief Committee of Cambridge, Mass., Cambridge, Mass., 

Sept. 16, 1939. Poland 

Polish Relief Committee of Delaware, Wilmington, Del., Sept. 22, 

1939. Poland - 

Polish Relief Committee of Gardner, Mass., Gardner, Mass., Sept. 26, 

1939. Poland... 

Polish Relief Committee of Holyoke, Mass., Holyoke, Mass., Nov. 4, 

1939. Poland - -- 

Polish Relief Committee of Jackson, Mich., Jackson, Mich., Nov. 9, 

1939. Poland 

Polish Relief Committee of Nassau County, N. Y., Hempstead, N. Y., 

Oct. 28, 1939. Poland 

Polish Relief Committee of Philadelphia and Vicinity, Philadelphia, 

Pa., Sept. 12, 1939. Poland --- 

Polish Relief Committee of the Polish National Home Association, 

Lowell, Mass., Nov. 27, 1939. Poland 

Polish Relief Fund, Detroit, Mich., Sept. 11, 1939. Poland 

PolishRelief Fund, Jersey City, N. J., Sept. 12, 1939. Poland 

Polish Relief Fund, Jcwett City, Conn,, Oct. 3, 1939. Poland 

Polish Relief Fund, Middletown, Conn., Sept. 23, 1939. Poland 

Polish Relief Fund, Niagara Falls, N. Y., Oct. 26, 1939. Poland 

Polish Relief Fund Committee, Los Angeles, Calif., Dec. 13, 1939. 

Poland 

Polish Relief Fund Committee of Milwaukee, Milwaukee, Wis., Sept. 

26, 1939. Poland 

Polish Relief Fund Committee of Passaic and Bergen Counties, Pas- 
saic, N. J., Sept. 22. 1939. Poland- 

Polish Relief Fund of Fall River, Mass., Fall River, Mass., Nov. 8, 

1939. Poland 

Polish Relief Fund of Irvington, N. J., Irvington, N. J., Sept. 26, 1939. 

Poland 

Polish Relief Fund of Meriden, Meriden, Conn., Oct. 12, 1939. Poland 
Polish Relief Fund of Palmer, Mass., Three Rivers, Mass., Oct. 20, 

1939. Poland 

Polish Relief Fund of Syracuse, N. Y., and Vicinity, Syracuse, N. Y., 

Oct. 31, 1939. Poland 

Polish Relief of Carteret, N. J., Carteret, N. J., Oct. 11, 1939. Poland. . 
Polish Roman Catholic Priests Union, Group No. 3 of New York Arch- 
diocese, New York, N. Y.,Jan. 25, 1940. Poland and France..- 

Polish Union of the United States of North America, Wilkes-Barre, 

Pa., Sept. 8, 1939. Poland.- -- - 

Polish United Societies of Holy Trinity Parish, Lowell, Mass., Sept. 

20,1939. Poland. 

Polish War Suflcrers Relief Committee (Fourth Ward) , Toledo, Ohio, 

Sept. 21, 1039. Poland 

Polish Welfare Association, Hyde Park, Mass., Sept. 16, 1939. Poland 
Polish Welfare Council, Schenectady, N. Y., Sept. 22, 1939. Poland 
Polish White Cross Club of West Utica, Utica, N. Y., Oct. 20, 1939. 

Poland . . .- - 

Polish Women's Fund to Fatherland, Lawrence, Mass., Sept. 23^1939. 

Poland - 

Polish Women's Relief Committee, New York, N. Y., Nov. 24, 1939. 

France, Poland, and Germany 

Polish Young Men's (^lub, Danielson, Conn., Jan. 19, 1940.' Poland 
Polski Komltet Ratunkowy (Polish Relief Fund), Binghamton, 

N. Y., Sept. 25, 1939. Poland - 

Polsko Narodowy Komitet w Ameryco, Scranton, Pa., Sept. 8, 1939. 

Poland -.- -- 

Pulaski Civic League of Middlesex County, N. J., South RivenN J . 

Sept. 30, 1939. Poland _ 



2, 129. 21 
29, 671. 92 

1, 483. 60 

520. 40 
3,005.71 

2, 314. 07 
6, 856. 60 
3, 169. 65 
1,917.66 

4, 315. 70 

900.02 

944.40 

3. 745. 03 
2, 523. 79 
2, 623. 39 

937. IS 
1,328.00 
23, 646. 68 

1, 455. 39 
85,631.11 
24, 466. 33 

429. 05 

2, 362. 40 
1, 000. 00 

153.94 
7, 960. 45 
7, 817. 65 

678.36 

2. 508. 94 
1, 072. 17 

786. 71 

3, 443. 40 
828.76 

None 

714.00 

3. 663. 04 

3, 714. 46 

383. 75 

3, 203. 95 

2, 887. 63 

3, 144. 67 



2, 603. 18 

15,071.03 

367. 75 



$596. 03 

1,000.00 

20, 481. 63 

1, 300. 00 

None 
2, 403. 85 

1. 300. 00 

5. 079. 01 
2, 577. 91 
1, 000. 00 

4, 000. 00 

400.00 

None 

3, 000. 00 

1,100.00 

2, 153. 10 

300. 00 

1,300.00 

21, 775. 50 

600.00 
45, 599. 63 
8, 644. 25 

425. 00 
1, 000. DO 

None 

None 
6, 000. 00 
4, 836. 60 

600.00 



None 

None 

1, 652. 03 

3, 668. 71 

None 

2, 211. 56 

1,993.02 

1, 500. 00 



1, 125. 49 

9, 895. 78 

None 



None 

$77. 16 

1, 767. 16 

7.15 

38.75 
280. 30 
414. 84 
472. 00 

17.27 
2.05 

145. 02 

141. 54 
9.48 
81.91 

594. 68 
70.28 
62.70 
28.00 

251. 12 

140. 34 
400.88 
660.23 
None 
18.20 
None 

61.07 



233. 43 
30.10 



None 

None 

149. 40 

46.74 
None 
44.65 

97.42 

350.06 



200.68 
166.82 
86.00 



None 

$1,052.05 

7, 423. 24 

176. 45 

481. 65 
321. 56 
599.23 
305. 49 
674. 47 
915.61 

170. 68 

358. 48 

934. 92 

663.12 

829. 11 

400. 01 

684.48 

None 

1, 619. 06 

815.05 
39, 630. 70 
16,371.85 
4.05 
1. 344. 20 
1, 000. 00 

92.87 

2, 910. 67 

2, 747. 62 



None 

714.00 

1,861.61 

None 
383. 75 
947. 85 

797. 19 

1,294.61 



1, 277. 11 

6, 008. 43 

282.76 



None 

$6, 000. 00 

198,160.00 

None 

735.00 
50.00 
None 
350. 00 
700.00 
None 

None 

None 

None 

450. 00 

None 

276.00 

None 

None 

None 

None 
9, 800. 00 
None 
None 
None 
None 

160.00 

None 

1,625.00 

None 



None 

None 

None 

None 
None 
None 

1, 100. 00 

550.00 



600.00 

8,000.00 

None 



< The registration of this organization was revoked on Jan. 31, 1940, 
( The registration of this organization was revoked on Jan. 17, 1940, 
» The registration of this organization was revoked on Jan. 31, 1940, 



at the request of registrant, 
at the request of registrant, 
at the request of registrant. 



MAKCa 2, 1940 



^51 



Contributions for Relief in Belligerent Countries — Continued 



Funds spent 

for relief In 

countries 

named 



Funds 
spent for 
adminis- 
tration, 
publicity, 

affairs, 
campaigns, 



Unexpended 
balance as of 
Jan. 31, 1910, 

including 
cost of goods 

purchased 

and still on 

hand 



Estimated 
value of 

contribu- 
tions in 

kind sent 
to coun- 
tries named 



Estimated 
value of 

contribu- 
tions in 

kind now 
on hand 



Pulaski League of Queens County, Inc., Jamaica, N. Y., Oct. 21, 1939. 

Poland - . - -- - 

Refugics D'Alsace Lorraine en Dordogne, San Francisco, Calif., Nov. 

9. 1939. France _ _ 

Rekord Printing and Publishing Co., Shamokin, Pa., Sept. 14, 1939. 

Poland - - 

Relief Agency for Polish War Sufferers, Willimantic, Conn., Sept. 29, 

1939. Poland 

Relief Committee of United Polish Societies, Chicopee, Mass., Oct. 21, 

1939. Poland - 

Relief Fund for Sufferers in Poland Committee, Kenosha, Wis., Sept. 

25, 1939. Poland - - - 

Relief Society for Jews in Lublin, Los Angeles, Calif., Dec. 13, 1939. 

Poland - 

Russian Refugee Children's Welfare Society, Inc., New York, N. Y., 

Sept. 29, 1939. Germany. France, and Poland 

The Sacred Heart Roman Catholic Church, Little Falls, N. Y., Little 

Falls, N. v., Nov. 2. 1939. Poland... .- 

Saint Adalbert's Polish Relief Association, Thompsonville, Conn., 

Nov. 2, 1939.1 Poland .- 

St. Michael's Roman Catholic Parish, Derby, Conn., Oct. 20, 1939. 

Poland 

St. Stephens Polish Relief Fund of Perth Amboy, N. J., Perth Amboy, 

N. J., Sept. 27, 1939. Poland 

Save the Children Federation, Inc. (formerly International Save the 

Children Fund of America, Inc.), New York, N. Y., Sept. 8, 1939. 

England and Poland 

Schuylkill and Carbon Counties Relief Committee for Poland, Frack- 

ville, Pa., Sept. 15, 1939. Poland 

Secours Franco-Amfricain— War Relief, Pittsburgh, Pa., Nov. 20, 

1939. France 

Share A Smoke Club, Inc., Ithaca, N. Y., Nov. 14, 1939. England 

and France 

Sociedades Hispanas Confederadas, Brooklyn, N. Y., Jan. 22, 1940. 

France 

Soci''tl* Francaise de St. Louis, Inc., St. Louis, Mo., Nov. 16, 1939. 

France 

Society of the Devotees of Jerusalem Inc., New York, N. Y., Dec. 18, 

1939. Palestine 

Southbridge Allied Committee for Relief in Poland, Southbridge, 

Mass., Nov. 9, 1939. Poland _ 

Spanish Refugee Relief Campaign, New York, N. Y., Sept. 20, 1939. 

France 

Springfield and Vicinity Polish Relief Fund Committee, Springfield, 

Mass., Sept. 23, 1939. Poland- 

Toledo Committee for Relief of War Victims, Toledo, Ohio, Sept. 19, 

1939. Poland _ 

Tolstny Foundation for Russian Welfare and Culture, New York, 

N. Y., Oct. 17. 1939. France and Poland 

Mrs. Walter R. Tuckerman, Bethesda, Md., Nov. 24, 1939. Great 

Britain _ 

Edmund Tyszka. Hamtramck. Mich., Sept. 19, 1939. Poland 

United American Polish Organizations, South River, N. J., South 

River, N. J.. Oct. 20, 1939. Poland 

United Charity Institutions of Jerusalem, New York, N. Y., Oct. 13, 

U n i ted Commi ttee'foV Fre'nch Relief,' New York," N J Y^," Oct." 2&, Y939V 
France --- - - 

United German Societies, Inc., Portland, Oreg., Portland, Oreg., Jan. 
8, 1940. Germany 

United Nowy Dworer Relief Committee, New York, N. Y., Jan. 3, 

1940. Poland _ -.. 

United Opoler Relief of New York, New York, N. Y., Dec. 9, 1939. 

Poland... -- - 

United Polish Central Council of Connecticut, Bridgeport, Coim., 
Oct. 16, 1939. Poland... 

United Polish Committees in Racine, Wis., Racine, Wis., Nov. 2, 1939. 
Poland 

United Polish Organizations of Salem, Mass., Salem, Mass., Oct. 20, 
1939. Poland 

United Polish Roman Catholic Parish Societies of Greenpoint, Brook- 
lyn, N. Y., Brooklyn, N. Y.. Oct. 13, 1939. Poland. 

United Polish Societies of Bristol, Conn., Bristol, Conn., Sept. 29, 
1939. Poland 

United Polish Societies of Hartford, Conn., Hartford, Coim., Sept. 27, 
1939. Poland 

United Polish Societies of Immaculate Conception Church, Southing- 
ton, Conn.. Oct. 13, 1939. Poland .. 

United Polish Societies of Los Angeles, Los Angeles, Calif., Oct. 21, 
1939. Poland 



$4, 889. 85 

1, 435. 00 

828.61 

1,936.04 

1,238.18 

1, 390. 76 
258.36 

6, 070. 70 
200.35 
686.92 
312.65 

2, 469. 77 

826.65 

2, 994. 75 

278.60 

64.60 

43, 649. 05 

None 

3, 093. 45 

628.98 

23, 330. 60 

822.60 

3, 450. 95 

14, 842. 53 



$3,000.00 

1, 433. 46 

584.04 

1, 544. 21 

1,200.00 

1,000.00 

None 

1, 889. CO 

160.00 

390.00 

None 

None 

655. 75 
1, 455. 00 

None 

None 
7, 386. 25 

None 
2,000.00 

None 
3,926.99 

600.00 
3, 100. 00 
5, 003. 70 



' The registration of this organization was revoked on Jan. 31, 1940, 



1,996.63 


1, 200. 00 


13,602.58 


7, 107. 88 


10,069.27 


4, 594. 00 


None 


None 


370. 37 


None 


None 


None 


3,374.07 


10.00 


1,046.85 


850.00 


1,331.29 


1,000.00 


1, 989. 88 


1, 300. 00 


701. 37 


604.00 


1, 709. 81 


None 


507.60 


250.00 


1,661.41 


1, 510. 26 


at the reques 


t of registrant 



$157.26 
None 
None 

6.34 
None 
10.70 
17.53 
978.90 

1.00 
None 
None 
None 

100.00 

None 

32.16 

6.40 

1, 616. 69 

None 

976. 69 

20.91 

15, 425. 62 

14.75 

71.95 

928.55 



68.05 
6, 398. 82 

443.67 
None 
46.66 
None 
None 
97.76 
42.95 
40.00 
None 

109.00 
11.00 

101. 34 



$1, 732. 60 

1.54 

244.67 

385. 49 

38.18 

380.06 

240.83 

2, 202. 80 

49.35 

290. 92 

312. 65 

2, 469. 77 

70.90 

1, 139. 75 

246.46 

68.10 

34, 646. 11 

None 

116.86 

508.07 

3, 977. 89 

307. 86 

279.00 

8,910 28 



6, 031. 60 
None 
323.82 
None 

3, 364. 07 
99.10 
288.34 
649.88 
197. 37 

1,600.81 
246.60 
49.81 



None 
None 
$660. OO 
296.05 
None 
None 
None 
None 
None 
625.00 
None 
None 

None 

None 

186. 00 

None 

None 

None 

None 

None 

10, 036. 00 

None 

None 

None 

None 
None 

None 

None 

464.00 

None 

None 

None 

740.00 

None 

None 

None 

100.00 

None 

None 

None 



None 
None 
None 
None 
None 
None 
None 
$977. 85 
None 
None 
None 
None 

None 

None 

None 

None 

410.00 

None 

None 

None 

3, 000. 00 

None 

None 

None 

None 
None 

None 

None 

136.00 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 



252 



MPABTMENT of state BUliLETIN 



Contributions fob Relief in Belligerent Countries — Continued 



Name of registrant, location, date of registration, and destination of 
contributions 



Funds spent 

for relief in 

countries 

named 



Funds 
spent for 
adminis- 
tration, 
publicity, 

affairs, 

campaigns, 

etc. 



Unexpended 
balance as of 
Jan. 31, 1940, 

including 
cost of goods 

purchased 

and still on 

hand 



Estimated 
value of 

contribu- 
tions in 

kind sent 
to coun- 
tries named 



Estimated 
Talue of 

contribu- 
tions in 

kind now 
on hand 



United Polish Societies of Manchester, Manchester, Conn., Nov. 9, 

1939. Poland--- 

United Reading Appeal for Polish War Sufferers, Readmg, Pa., Sept. 

22, 1939. Poland - --- 

Urgent Relief for France, Washington, D. C. Dec. 26. 1939. France- 
Mrs. Paul Verdier Fund, San Francisco, Calif., Oct. 11, 1939. France. 

Ware Polish Relief Fund, Ware, Mass., Nov. 4. 1939. Poland 

Women's Allied War Relief .\ssociation of St. Louis, Clayton, Mo., 

Dec. 18. 19:i'.i. Qreat Britain and France 

Registrants whose registrations were revoked prior to Jan. 1, 1940, and 

who had no balance on hand as of that date 



5. 236. 33 

2, 216.SS 

3, 953. 72 
1, 236. 05 

318. 95 

30, 557. 31 



4, 568. 64 

803. 78 

3. 897. 31 

1. 044. 90 



126. 30 
73.98 
40.45 
36.80 

None 

2, 434. 80 



541. 49 

1, 339. 12 

16.96 

154. 35 

195. 18 

None 



None 

$92.00 

3, 082. 00 

400.00 

None 

None 



None 
$530. 65 
200.00 
176.00 

None 

None 



Totals " - -- ---- 3,388,962.98 



1, 029, 320. 76 323, 313. 03 



" It is not possible to strike an exact balance in these published totals, since some registrants have included in their expenditures monies available from 
loans or advances, which are not considered by the Department to be "funds received" and hence are not reported as such. 



The American Republics 



EXTENSION OF THE AMERICAN SCHOOL OF THE AIR TO THE OTHER 

AMERICAN REPUBLICS 

Remarks by Laurence Duggan '^ 



[Released to the press February 29] 

Tlie tliouglit of education by radio stirs the 
imagination and reminds us anew of the infi- 
nite possibilities within tlie range of tliis mod- 
ern miracle. The success of the School of the 
Air is now widely recognized in this country 
w^here its broadcasts are daily affecting the 
lives of thousands of our students. It is now 
proposed to extend the scoi)e of these radio 
classes. In my opinion the invitation to the 
Ministers of Education in the other American 
republics to participate in preparing and 
utilizing the educational radio forum marks a 
genuinely heartening advance in one of the 
finest fields of international cooperation. 

Perhaps a part of my enthusiasm for this ex- 
tension of education results from my own close 



' Dellveretl nt Washington, D. C., and broadcast over 
the Coluintiia Broadca.sting System Fobniary 29, 1940. 
Mr. IJuKgan i.s Cliicf of the Division of the Americau 
Republics, Department of State. 



association for over a decade with efforts of 
this kind. Before joining the staff of the De- 
partment of State, I was with an organization 
engaged in facilitating and encouraging the ex- 
change of students and professors between the 
United States and the other American repub- 
lics. Since entering Government service, I have 
had the privilege of watching the steady 
growth of inter-American cooperation, and I 
have long been convinced that interchange in 
the educational field contributes tangibly to 
that understanding which is the foundation of 
international good will. The interchange of 
students was greatly stimulated by an inter- 
American convention of 1936, the entry into 
effect of which was one of the purposes for 
which the Division of Cultural Relations was 
recently established in the Department of 
State. This office has likewise made substan- 
tial progress in assisting and coordinating the 



MARCH 2, 1940 



253 



efforts of the many private organizations and 
individuals who are striving to widen the chan- 
nels of knowledge between the peoples of North 
and South America. 

The radio now gives us a further medium of 
cooperation in international education. I be- 
lieve that you will all agree that universal edu- 
cation in the United States is one of the 
keystones of our democracy and that without 
tlie diffusion of education among our peoples, 
the task of maintaining the vitality of our in- 
stitutions would be rendered infinitely more dif- 
ficult. The success of the United States in mak- 
ing elementary education available to all has 
been due to the efforts of the thousands of 
educators and teachers who are devoting their 
lives to this end. These teachers have now 
combined their talents to supplement their 
work in this modern manner, and the radio is 
now prepared to offer through the School of 
the Air the prospect of a uniquely economical 
and effective method of disseminating "the 
three R's." 

I am confident that this prospect will evoke 
an enthusiastic response fi'om thoughtful edu- 
cators abroad. Some countries have doubtless 
been working independently along the same 
lines, and I believe they will welcome the op- 
portunity to exchange information concerning 
methods. Educators in the other American 
republics have the same interest that exists in 
the United States in fundamental education and 
its promise for widespread participation in 
government, as well as in economic comforts 
and the satisfactions of the storehouse of the 
mind. 

Wliile I mention on the one hand the need 
recognized by the government officials and 
thoughtful citizens of our sister reijublics for 
moi-e widespread basic education, I wish to em- 
phasize our own opportunity to learn from 
them. There is a growing realization in our 
country that the thinkers and artists of the 
other American republics have truly distin- 
guished themselves. We are discovering that 
a veritable gold mine of literature and poetry 



awaits the language student and translator and 
that an amazing variety of music awaits the lis- 
tener who gains access to it. The radio has ex- 
tended particularly the enjoyment of this mu- 
sic, and I hope that more is in store. The radio 
school may give language learning a greater 
impetus in our country as a key to the written 
thought and art of the authors of the other 
Americas and as a medium for better under- 
standing through personal relationships and 
intei-change of current thought. 

I look forward confidently to the time when 
the distinguished achievements of radio educa- 
tion in the other American republics will mark 
this day for posterity. 

^ ^ ■*■ 

DOMINICAN REPUBLIC: ANNIVER- 
SARY OF INDEPENDENCE 

[Released to the press February 27] 

The President has sent the following tele- 
gram to the Acting President of the Dominican 
Republic, Manuel de Jesus Troncoso de la 
Concha : 

"The White House, February 27, 1940. 
•'I send to Your Excellency my cordial greet- 
ings on this aimiversary of the independence of 
your country and the assurances of my best 
wishes for the happiness and well being of the 
Dominican people. 

Franklin D. Roose\-elt" 

[Released to the press February 29] 

Following is a translation of a message re- 
ceived by President Roosevelt from the Acting 
President of the Dominican Republic: 

"CrODAD Trujiijx), 

February 27, Wlfi. 
"I have the honor to express to Your Excel- 
lency my most sincere gratitude for the kind 
and cordial message which you sent me on the 
occasion of the great anniversary commemo- 
rated today by the Dominican people and Gov- 
ernment, whose relations with the people and 



254 

Government of the United States are constantly 
becoming closer as is evidenced by the con- 
tinuous and reciprocal marks of cordial friend- 
ship which bind the two countries so closely 
joined witli a common desire of inter- American 
rapprochement. 
Manuel de JS Teoncoso de la Concha, 
Vice President of the Republic, 

Acting President.'''' 



DEPAETMENT OF STATE BtTLLETIN 

BOARD OF INQUIRY FOR THE GREAT 
LAKES FISHERIES, UNITED STATES 
AND CANADA 

An announcement regarding the establish- 
ment of a Board of Inquiry for the Great 
Lakes Fisheries on February 29, 1940, appears 
in this Bulletin under the heading "Treaty 
Information." 



General 



ADDRESS BY ASSISTANT SECRETARY BERLE 



[Released to the press February 25] 

For many months the American public has 
been giving its best thought to the problem of 
maintaining American democracy in a world 
which is increasingly torn by war. Plainly, it 
is time that the best of national thought and of 
national attention be given to that problem. 
For the struggle which goes on today is, in 
considerable measure, a struggle to determine 
whether free economy and free life as we know 
it can survive in the modern world. 

It so happens that this hemisphere is not, up 
to now, directly threatened. Yet, because no 
part of the world today can claim that glorious 
isolation which the broad expanse of ocean and 
plain once gave us, no one of us